– The author is looking to make $10 million in the next 12 months using math and a high-margin product.
– They have a strategy related to business strategy, marketing, and ecommerce that has shown a conservative increase in revenue for every business they have used it on.
– The author is considering a value-based pricing model and is confident in their ability to make companies more money.Develop and offer a high-margin product or strategy in the field of marketing and ecommerce that provides a significant return on investment (ROI) for businesses, with a pricing structure based on the company’s monthly revenue.I like math. How can I make $10 million dollars in the next 12 months? So, this is where things get interesting because it’s all math. Sell one thing for $10,000,000. Sell ten things for $1,000,000. Sell one hundred things for $100,000. Sell one thousand things for $10,000. Sell ten thousand things for $1,000. Sell one hundred thousand things for $100.
Now, you need a high-margin product, so we’ll stick with what I know: information about business strategy, specifically marketing and e-commerce. (I have the bonus of software too.) I’d put my knowledge up there with most people at this point in that category. I’ve pretty much tested everything at this point.
In fact, one overlooked strategic implementation I’ve created has made an additional 5% conservatively a month in total revenue for every business we’ve used it on. Meaning, by the numbers:
– If you do $10,000 per month, it’s worth $500 per month.
– If you do $100,000 per month, it’s worth $5,000 per month.
– If you do $1,000,000 per month, it’s worth $50,000 per month.
So, I need a product strategy that all e-commerce companies would pay for that would result in an ROI of at least 2x so they can prove out the value of the advice. Now, I need to know how long that would take them to realize, let’s say a maximum of 60 days. Two days implementation or less, 58 days of results.
Now, we look at the Total Addressable Market. If we’re selling a strategy to everyone, we need a price point that makes sense relative to the TAM. Obviously, there are a few different people that would benefit from this. If you’re an agency, you could use this strategy to land more clients. If you’re a brand, you get an immediate impact.
So, what is this strategy worth to you? It depends. But remember, my goal is $10 million in 12 months. Conservatively speaking, the question then becomes how do we change the mindset of spending on a strategy and tools relevant to ad spend? If you invest in an ad you’re hoping for a 2x ROAS in a fixed time period, when you invest in this strategy you get compounding gains in perpetuity.
Those examples from above in one year would mean:If you do $10,000 per month it’s worth $6000 per yearIf you do $100,000 per month it’s worth $60,000 per yearIf you do $1,000,000 per month it’s worth $600,000 per year
So whatever price we come in at needs to show a massive ROI of at least 2x.
At $10k per month the company should pay $250 per month
At $100k per month the company should pay $2500 per month
At $1m per month the company should pay $25,000 per month
And they would still do better than ad spend while making ad spend more efficient, because remember these are conservative estimates backed by testing. So now we’re at value based pricing where you can show a yearly ROI in less than 60 days at a fixed price per year based on your revenue. So now to the question of show v. tell, explained or done for you.If you’re a brand, I can 100% make you more money. The only question is what’s the best approach? #ecommerce #marketing #strategyhttps://www.linkedin.com/in/jivanco