How to make a million dollars in cold, hard cash
Think about the unit economics of what you do.
If you’re running any kind of business, whether it’s freelancing as a creative or building a software company, you have to look at how you make money, what your units are and how much you charge, what your overheads are, and what combinations of products, prices, services and scale are going to get you where you want to be.
This is what a million bucks looks like per unit.
Here’s an image I’ve found and kept saved in my Evernote for a while now.
To make a million dollars, you need…
5,000 people to buy a $200 product
2,000 people to buy a $500 product
1,000 people to buy a $1,000 product
500 people to buy a $2,000 product
300 people to buy a $3,333 product
Get 5,000 people to pay $17 a month for a year
Get 2,000 people to pay $42 a month for a year
Get 1,000 people to pay $83 a month for a year
Get 500 people to pay $167 a month for a year
Get 300 people to pay $278 a month for a year
I love that break down. I love it because it makes that million seem so incredibly achievable. It’s just a matter of what you sell for what price to how many people for how long.
Right there, that’s your millionaire equation. Right there…that’s what you’ve got to base the economics of your business on…
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