A million ain’t what it used to be, but it’s still pretty good money- especially if we’re talking about annual sales for a new business.
So how would you get to that milestone?
(Hint: It’s not about inheriting a fortune, it’s all about entrepreneurship)
In other words the old fashion way through working hard, good strategy, and never giving up.
But how do you actually make a million in 12 months without resorting to the quick fix, push button, overnight solutions that we’ll all see on the internet?
If you follow the internet hype, it seems like ANYONE with ANY product can become an instant millionaire. But that’s just wishful thinking. We’re not going to even go there for this post.
In my humble opinion, after some 20+ years in business, the one thing that I’ve learned that stands the test of time is you need to have a plan and a good strategy.
Especially if you’re starting from scratch.
Not only you need to have a strategy, but you need to have a detail plan of how exactly you’re going to get from where you are to where you want to be.
Let’s work the numbers
Fortunately, there is a beautiful relationship between sales and numbers.
That’s right, in sales numbers are magic. So let’s say your product is $1000 and you want to make $1 million in 12 months.
That means you need to make 1000 sales at $1000 each to make your 1 million.
That’s so simple to understand and yet so powerful at the same time. There is magic in these numbers!
And that’s what we can use to simplify this discussion.
In my hyper funnel sales training, I have a 4 step process to create hyper converting sales funnels for almost any product in any industry, even though I’ve focused my framework to high ticket products.
By high ticket I mean products that range in price from a few thousands to over $200K per deal.
Let’s take a look.
We’ll start at the bottom of the sales funnel and work our way backward.
We need 1000 sales at a $1000 per sale.
An average salesperson closes 1 out of 3 opportunities so that means we need 3000 opportunities to close 1000.
An average sales rep needs 9000 prospects to end up with 3000 qualified leads or a 3 to 1 ratio.
An average salesperson needs to make 10 attempts to setup 1 meeting. So that means we need 10 x 9000 = 90,000 attempts.
I’m sure you’re wondering what is exactly an “attempt”. An attempt is trying to get a hold of your prospect, it’s an email, a phone call, an in-person visit, etc. Any time you attempt to reach out to your prospect, you’re working the sales funnel.
But that’s a LOT!
Wow, that seems like a LOT of work!
But let’s drill a little more and see what happens.
90,000 attempts in 12 months. Let’s assume a 300 day average per year. That’s 90,000 / 300, which is 300 attempts per day. Now these number are based on averages and can vary a lot based on your product, your industry, your sales funnel process, etc.
Let’s assume you’re an entrepreneur and you’re in the planning phase of your exciting business. You’re trying to figure out what needs to happen to make that million in 12 months.
You’re trying to see what’s possible.
Right off the bat, this is too much to handle for 1 sales person. 300 attempts per day is not doable.
What if you have 2 sales people each making 150 attempts per day. I don’t know about you but that’s still too much.
So what’s the solution, are you going to need 3 or more sales people?
If you had 6 sales reps and each made 50 attempts per day, that could do the job.
Is that feasible for your business?
I don’t know, it depends. Are these 6 direct hires? or are they commission based?
What you see here is the power of numbers and how to actually work out what needs to happen to make that million dollars in 12 months.
The beauty of playing with numbers is that it allows you to look at the problem from a practical perspective. It provides some clarity as to the decisions and choices you need to make to get to your goal.
If you’re an entrepreneur and you don’t have the means to hire 6 people, then you got to find a different strategy to make that million.
Challenges of lead generation and sales funnel management is something that almost every business has to deal with. In all of these years of working in the trenches, I’ve rarely come across a business that said selling and lead generation was easy.
So now going back to our original sales funnel experiment. What can we do to generate 1MM in 12 months if we can’t or don’t want to hire sales people?
Well, there are several ways to solve this 6-figure problem, but I’m going to focus on only 1 alternative.
What’s the alternative?
What if you could build a funnel that can generate 100% of your sales with built-in scalability and automation.
We’re talking about a framework to generate leads, nurture and qualify them on autopilot so the bulk of your work could be automated.
Think of it this way, if you could automate those 90,000 attempts so that you end up only needing to personally handle a fraction of them, how much would that be worth to you?
What if you only needed to handle 10% or 9000 instead of 90,000 attempts?
Instead of making 300 attempts per day, you would do 30 attempts because your funnel is doing 90% of the work for you automatically.
Now we’re talking about something that is VERY DOABLE.
And that’s what I teach business owners and entrepreneurs. A simple 4 step program to setup hyper converting funnels that multiply your sales and minimize your costs.
The beauty of this strategy is that when you setup your funnel based on the framework that I teach. All of a sudden instead of sleepless nights thinking about lead generation and lead qualification and making your numbers. You start thinking about what you’re going to do with all the money you’re going to make.
A magic formula?
I’m sure you’re wondering, if this is just another one of those short lived tactics.
Well, not really. Marketing automation has been around for many years. But the tools themselves are much less important than how you use them to get results. And that’s at the core of hyper funnels. 4 simple steps that combined can transform your sales funnel. In hyper funnels framework you can use almost any tools to setup your funnel.
But here are the conditions you need to meet to setup such a high converting funnel:
1. You have an offer that actually adds value to your target market
2. You have a benefit advantage that clearly communicates why your customers need to buy from you and not your competitor
3. You have a scalable, reliable sales funnel
4. You commit to do the work
If you don’t meet these 4 criteria, it won’t work. At least not in the scale that we’re talking about here. Do you need to have a hyper funnel to sell?
No. There are plenty of businesses with anemic funnels that sort of work.
When you have anemic sales funnel, you’ve got headaches and problems all day long.
I’m not promising anyone that this is some sort of a formula and all you need to do is plug in the variables and out pops your million dollars. BUT this is as close as you can get to a system that can do almost magic for you.
Hyper converting funnels
In hyper funnels, there are a number of lead sources that continuously feed the funnel. These sources are from a variety of places, like paid traffic, organic traffic, conferences/trade shows, speaking events, affiliate sites, channel partners, etc.
These feeders can be setup to work for you on an “as need basis”, filling the funnel. Then through a carefully crafted roadmap, we setup journeys that engage people based on their interaction. For example optin forms on your website, people that you meet at trade shows, digital marketing assets and sales videos.
We teach you EXACTLY how to setup a roadmap that is customized to YOUR business. The roadmap becomes the core structure of your funnel.
One of the awesome benefits of hyper funnels is that they generate metrics that you can use to fine tune and tweak for best results.
Going back to our example, you only need 1000 sales to make $1million.
Once you get your hyper funnel setup and it starts to generate sales, you can tweak and adjust the different input levers for best results.
So now let’s use a hyper funnel in our test example here.
You generate 3000 qualified prospects through feeders that are specifically setup for your business. Your hyper funnel engages and nurtures leads, qualifies them based on their interaction and sends you ONLY the best and most qualified leads.
So let’s say you end up with 1000 ready to buy qualified leads. Most of the leads arrive in your inbox. You wake up in the morning and check your email and there it is waiting for you to respond to.
How cool is that!
1000 highly qualified opportunities in 12 months.
That’s about 21 qualified leads per week.
Can you handle 21 conversations per week?
What if some of those can be completed through your online store?
Now, you’re not going to close all of them, but you’ll close most of them. You can fine tune your messaging, your offer, and your funnel to increase conversion.
What can you do with all the extra time?
Like any other forward thinking entrepreneur, you’ll reinvest in your business and get MORE leads to feed into your funnel so you can make more money.
You get the idea here.
Your funnel is working 24/7 on autopilot and all of a sudden instead of thinking how you’re going to make $1 million in 12 months, you’re thinking about how to make $2 million.
What if your offer was $5000 instead of $1000. That means you need 200 sales to make a million.
Your sales cycles are going to be longer. You need to build more trust and authority. Nurturing and adding value plays a bigger role in your business.
You need a LOT less leads. You can work out the numbers but the framework is still the same, helping you multiply your sales.
If you liked this post, please share it with your friends and colleagues. And if you want to learn more about hyper funnels shoot me a message. You can also register for my FREE training sessions and start applying tactics that can multiply your sales.
Latest posts by Nick Rakhshani (see all)
- How to make 1$ Million in 12 Months - April 12, 2017
- 5 Fatal Email Prospecting Mistakes You Want to Avoid - March 12, 2017
- Entrepreneurship is not just about big ideas - October 15, 2016