In episode #551, Eric and Neil lay out what makes a 7-figure business, 8-figure business, and 9-figure business. Tune in to hear great tips about how to gradually scale up your company.
Time-Stamped Show Notes:
- [00:27] Today’s Topic: The Difference Between 7-, 8- and 9-Figure Businesses
- [00:46] 7-figure businesses want a return on investment.
- [01:00] You want a 5:1 return, on average.
- [01:15] 8-figure businesses want to break even on their ad spend.
- [01:53] 9-figure businesses are willing to lose money at first.
- [02:13] They know the worth of a return customer down the road.
- [02:30] To compete, you need to outspend and have a funnel that converts very well.
- [03:00] “He who spends the most to acquire a customer, wins.”
- [03:58] Russell Brunson may lose money on the initial sale, because of his skill at setting up funnels he will recoup that money in the end.
- [04:30] It’s hard to build a big business, unless you are willing to lose money up front.
- [04:45] You have to have the stomach for losing money.
- [05:00] The Microsofts and the HubSpots probably lost money their entire first year in business.
- [05:25] To build a successful 7-figure business, you have to hit product market fit.
- [05:41] 8-figure businesses capitalize on past successes and drop what isn’t working.
- [06:15] 95% of the time, it’s a process problem. 5% of the time it’s a people problem.
- [06:54] When you’re looking to go from 7, 8 or 9 figures, you need to look to your teams to start scaling up.
- [07:30] You have to know what you want and go for it!
- [07:34] That’s all for today!
- [07:36] Go to Singlegrain.com/Giveway for a special edition of Crazy Egg, the heat mapping tool.
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