The Core Elements of Building a Seven Figure Business


The best way that I know to have impact is to focus on key actions that directly impact the core elements of a process.

There’s no word in the English language for what I want to express so I’ve made one up.

Let’s call that impact the “coreaction factor” and say that “coreactions” are actions that have the most impact on any result.

In any process there are key pivot points or “coreactions” where choosing a particular direction will change the outcome exponentially and persistently.

Typically “coreactions” are passionate, primary, permanent and prevalent. Actions that hold a powerful, pivotal position and are persistent, persuasive, and pioneering.

Too many “P” words for you?

I know, I’m sounding like a college textbook instead of someone that just wants to help you make a buck.

How about just one more “P” word?

“Puzzle”

The puzzle is, “What actions should I take to have the most impact?”

I’ve made it my mission is to crack the “Impact Factor” by identifying the actions that impact your bottom-line most.

Let’s go back to the basics for a minute.

 

Things you have to have to build a seven figure business.

1. One million more dollars coming in than going out.

Maybe that’s too basic, so let’s look at it another way:

 

We all know that businesses sell something (products services, etc.) and in business we want to sell at a profit.

So one of the “coreactions” for a business has to be to find a product or service that you can sell at a profit.

It’s a pivot point. No sales at a profit – Eventually, no business. That’s pretty core.

Ok, that’s basic, but we ignore it all the time. How many times have you kept selling something at a loss and then poured more assets into it only to create a bigger loss? I know I have.

Let’s break it down a little more.

There are some “coreactions” hidden within “finding a product or service that you can sell at a profit.”

  1. Find a product or service
  2. Sell the product or service
  3. Make a profit

No Product or Service = No Sales = No Profit = No Business
Product or Service + No sales = No Profit = No Business
Product or Service + Sales + No Profit = No Profit = No Business

On the other hand, if we can find a product or service that makes a profit …

Product or Service + Sales + Profit = A Business

But, not necessarily a seven figure one.

 

Case Study Results

As an experiment, I purchased a simple product.

The product included some really nice graphics that I knew I could use and it only cost $9.97 and the product came with Master Resale Rights.

If I could sell two then I would have a profit.

As it turns out, I mentioned it on this blog and sold lots of them — Interestingly enough to some pretty big name folks. Yes, you too can sell $9.97 products to millionaires.

Ok, so I had …

Product or Service + Sales + Profit = A Business

NOT a seven-figure business.

PayPal wants their share and I have a couple small expenses above the $9.97 investment that I made. Let’s say that I made $9 profit on each sale after expenses.

At a $9 per sale profit, in order to make that a seven figure business, all I have to do is sell 111,112 of them each year.

If I could sell that many, I would have a million dollar business.

But selling that many makes it a bit more complicated.

111,112 is a lot of sales.

That means that I have to convince over a hundred thousand people to buy my graphics.

When I did this experiment, I sent out about 9,841 email messages to a mailing list telling them that I had a new blog.

Out of that list 722 clicked on a link in the e-mail to go to the blog. That’s about 7.3% — Just shows you how low open rates are these days.

Out of that group 506 people clicked on the link in the blog to go to the sales page and out of the 506 people 57 of them purchased the product at the $9.97 price. That’s the sharp people in the audience! :)

So at $9 profit per sale that’s $513 profit.

So what are the “coreactions” that can turn that into a million dollars profit?

  • I could increase sales.
  • I could increase profits
  • I could find more products

Let’s look some of what we could do …

If we could duplicate our sales results every day of the year:

$513 * 365 days a year = $187,245.00

That’s a living, but not a million dollar business.

We got about a 5.22% purchase rate on our 9,841 leads.

If we could double the close rate we could get to increase that to 10% then we could get closer, but $374,490.00 still does not get us to our goal.

Those “coreactions” make a difference, but it’s clear that we need more to build a million dollar business.

We could increase the price.

If we raise the price to $97, how would that effect sales?

At $97 the profit level rises to $96 per sale. That means I only have to sell 10,417 in a year.

At the current 5.22% coversion rate that means we need to get our offer out to 199,560 people

Of course the conversion rate could go down.

Geez this stuff gets complicated!

And it’s about to get worse …

What if we got some hot shot big list owner to promote our product?

Well that could easily increase sales, but he’s not going out to his list with your product every day and you have to give him half the profits and that person is busy and so you have to find the big list owners, court them, support them.

How much time do you have in your day anyway?

It’s taking days just to figure this stuff out and in the meantime sales aren’t coming in.

So how can we build a business that doesn’t drive us crazy?

Well we certainly haven’t covered them all, but we identified SOME “coreaction” factors:

  • Finding a product or service that you can sell at a profit
  • Increasing conversion rates
  • Increasing the number of people that are exposed to your offer
  • Identifying the best price
  • Finding more products or services to sell

Now all we need to do is identify more AND figure out which ones have the most IMPACT on the bottom-line.

“The Checkbox Theory of Success”

I operate on the “Checkbox Theory of Success” which states that each “coreaction” you check off gives you exponential results.

Check off “Increase Conversion” and “Find More Products” and you get EXPONENTIAL results in comparison to just checking off one box. Check off three or four and the profits really mount up and things get a lot easier.

So, how does this work in the real world?

Imagine that you start with that $9.97 product.

You put up a site to capture leads and make sales.

You get it exposed to as many people as you can over the next few weeks.

You actively build up friends, post on social media, send messages.

You create a viral PDF file that promotes your product and give that away.

You are trading time for future profits

You list your product on Ebay, classified ads, you write articles, you partner with other people and give things away and finally …

You build up a decent list of customers.

Up until this point the entire key has been to build a list of customers that you have a good relationship with.

Now you have a starting point to build a business.

But that’s not a million dollar business.

So …

You add value to your existing customers.

It’s easier to sell to existing customers, so you sell MORE to them. In the “adding value” department, the “coreaction” factors are things like:

  • Find out what they want to buy
  • Find products that match what they want
  • Increase the value of existing products

So let’s say that we poll our customers and find out that they want template websites.

If that’s the case then we can sell them website templates, and hosting and copywriting and ….

Well you get the idea.

Let’s say that we end up with ten different related products that we are selling.

The average profit is $96 per product and we have 10 so that means WHATEVER product we sell first, we expose them to all of the other products AUTOMATICALLY.

That’s where autoresponder series and one-time offers and actually PLANNING the sales sequence comes in.

More on building that all into partnerships later.

Let’s say that over time we can sell each customer 3 products and we have 10 times as many products and now the average profit per product is up to $96.

3 products * $96 gives us a value per customer of $288 per customer per year. Now I only need 3,474 customers to break a million dollars.

So how do I get more customers?

3,474 customers is a heck of a lot less customers than the 111,112 that I started with, but I still have to find them.

This is where “word of mouth” comes in.

Try reading Mark Joyner’s book “The Irresistible Offer.”

Try thinking about “Copulation Rates” and virulence and the value of “word of mouth.”

What we really want is systems that run on their own, because at some point there is no more time left.

Up to a point, we can trade time for money, but time is the one thing that we really can’t get more of.

Sure I can develop healthy habits, exercise and do everything right, but so far as I know, we all die eventually and there is only so much time between right now and that final day.

So in a million dollar business – time becomes an issue.

And our top-level goals better be pretty well thought out too or before you know it, you have your million dollar business and you are miserable.

As you move to the “growth stage” it’s a good idea to think about “coreaction” factors that involve automation, residual income, abandonable systems and leisure friendly business.

Let’s say that we add a membership site for our customers at $59 per month. Half of our customers sign-up and we suddenly have residual income. Stability is a good thing.

But you are adding customer support, which requires time.

So now you need to look at developing automated systems to help with that and you are looking at involving more and more people — You know what people are like right?

Actually, I love working with good people, but it’s not easy and it does take time.

Now the issues start centering around finding, training and supporting good people.

Because if you can get to 3,000 customers on your own, you can do ten times that by bringing in more key people.

Now the “coreaction factors” center around outsourcing, finding partners, employees and management to handle that exponential growth.

And if you want to, you can take it further.

You can consider purchasing assets from other businesses, buying and selling businesses in part or whole, real estate, dominating niches, building massive publicity and on and on.

Building a million dollar business is pretty simple — at the core.

All you have to do is identify the “coreactions” that help you have the most impact with whatever resources you may have.

Oh … and one more thing.

You have to take action.

That’s the hard part.

I want to help NOW and If you want to work with me this year, take a look at:

http://kenmcarthur.com/help/
It’s wonderful to be working with people out there making a real impact in the world and I want to work with you!

And I’ll ALWAYS encourage you to come to one of my events!

Live events move you faster than anything I know.  Building relationships is crucial and successful people attend live events.

I’ve love to meet you in person and introduce you to amazing people to get you on the way.

http://kenmcarthur.com/events

All the best,

kensignature

Ken McArthur

Best-Selling Author and Producer

KenMcArthur.com
The Impact Factor Movie
The Impact Masterminds
The Impact Action Plan Workshops

P.S. Here’s the addresses to find me on Twitter and Facebook …

Twitter:
http://twitter.com/KenMcArthur

Facebook:
http://www.facebook.com/pages/Ken-McArthur/20103565427

P.P.S. Hint, hint …

Want to learn everything I know for less than $15?

Click here to get my latest hardcover book!

 

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About Ken McArthur

Ken challenges us to realize we ALL have an impact – whether we want to or not – on thousands of people who we touch in our day-to-day lives by demonstrating that simple things make a HUGE difference. The popular host of a series of live events that bring together top-level marketers, entrepreneurs, business owners, corporations and non-profit organizations to create multi-million dollar joint venture relationships – he creates incredible, intense impact for product launches and multi-million dollar profits in surprisingly short timeframes. Regularly asked to speak at leading marketing events, he has managed product launches ranked in the top 400 sites on the Internet. Ken McArthur is also the creator of AffiliateShowcase.com, a pioneering affiliate program search engine and directory system and the founder of the MBS Internet Research Center, which conducted the world’s largest survey ever attempted on the subject of creating and launching successful information products. Not satisfied to concentrate entirely on large organizations, Ken also works with select individuals to help them create a decent living utilizing the power of the Internet. Ken was the official mentor for Sterling Valentine as he took his launch from ZERO to over $100,000 in less than 8 days. Ken and Sterling documented the process as a “proof of concept” for Info Product Blueprint a massive home study course that is the “bible” of info product creation. Ken offers top-level coaching and mentoring programs designed to help individuals, corporations and non-profit organizations reach masses of people using the techniques, tactics strategies and systems that he has developed specifically to help people spread their ideas, products and services around the globe.

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