January 2021 Archives

Ep. 91 The Service Provider Formula

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Today I am doing the second formula in a series that I’ve been doing. Last week I did the coaches formula, which was a 10 step easy to explain formula to help people get started with different online business models. So today I’m back, and you guys loved the coaches consulting formula, so I am back today with the service provider formula.

A couple things about this formula, it is specifically for done for you services. So you could swap the term service provider and you could call it the social media manager formula, or the ad agency formula, or the copywriter formula, or the freelancer formula, or the funnel builder formula, or the virtual assistant formula. The idea is anything where you’re doing actual work where it takes time using your hands, not just your brain, that’s just kind of how I say it, will work for this formula.

The last one I did, the coaches/consulting is simply for people who do brain work, meaning they’re just selling their advice or their expertise. I still think that the service provider formula is the easiest way to enter the online space, especially if you don’t an expertise or a following yet. So if that’s you and you’re listening, I would definitely follow along.

Keep in mind that if you’re starting from scratch and you don’t have any online specific skills, it will take you a little bit longer because you do have to learn those skills and build out the business, but if you already have some skills that people would pay for, this can happen really fast. And unlike the coaches formula, where I suggested it would be about 18 months, you can actually get your first paying client in a service based business in as little as 30 days. You could be booked solid within 6 months. It’s a pretty fast way into the online space and doesn’t take a tremendous amount of money to get started, nor a huge audience. And you can earn anywhere from $30 to about $75,000 in that first year. That can quickly accelerate to $100k if you are choosing higher priced skills like funnels and aps.

So the first two steps of this formula are the same as the coaching and consulting formula, which is step one, set up your online presence on social media. Make sure to do it under your name. I know that some people worry, “Well what if I want to run a big agency, don’t I need an agency name?” Well, you could but I’m telling you that it’s going to be a lot harder to build out an agency with a brand that nobody knows, than it is a person. And the lovely thing is you can always change your name. You can change your business name later, or you can just add an “& Co”. A couple of examples of this are my client Katie, she runs KW Content agency, which is Katie Wight Content. And I know there was, I had a client a long time ago, her name was Miranda Nahmias, and now her business is Nahmias & Co. So you can, there’s lots of things you can do. It’s easier to set up under your name. Just trust me on this one.

So that’s step one, and step two is to go ahead and get a domain, professional email address. You can use something like Google Workspace which was GSuite.
Okay, so those are the first two steps, they’re the same first two steps as the coaches formula. It’s pretty much the same two steps for any formula. Now in step three, this is where we’re going to deviate a little bit from what I gave you in the last episode. So step three we’re going to set up a service provider website. We have in FG Funnels a five page website all ready. It’s in the styles of minimal and magic, if you sign up right now. If you’re listening to this down the road it may be a different style. But we always have a premium style and a basic style when you sign up with an FG Funnels account. That allows you to get your five page service provider website up very quickly.

So you’re going to determine your expertise or your service suite when setting up your website. There are two options. You can be a project based business, which means you’re doing something like copywriting or funnels. Or you can be retainer based, which is things like virtual assistant, online business management, social media, copywriting etc. So that’s what you’re going to do in step three, get your website set up and decide on your service suite.

Step four is really focusing in on the services page of your website. That services page should lead to a discovery call. The good news is in our pre-built templates it already does. We also have services automation in our simple collection for FG Funnels, or you can build your own. The idea is you really just need to get people on the phone. Once you’re on the phone you’re going to do one of two things, you’re going to sell a business intensive, which leads to custom project work, or you can just simple quote them retainer services and start the engagement. So again, it depends on what kind of business you’re running. Is it a project based business or is it a retainer based business. Either way you’re going to get them on the phone, and what you sell them might be slightly different.

Now if you don’t have any skills yet to market, in step four this is where we recommend getting into a training program area that you want to focus on. I know so many training programs for things like bookkeeping, virtual assistance, online business management, WordPress coding, Pinterest ads, Facebook ads, and then of course the one that I run in Funnel Gorgeous with Cathy is FG Society and I highly, highly recommend it for anyone getting into the online space, but especially if you are a service provider and you are interested in funnels, copy, or design. So you can work as you learn, and you can you know, just charge a little bit less. So that’s in step four. You’re really focusing on that service page and making sure you have the skills to actually deliver.

Now in step five we’re going to do the hardest step, the step that is the most important, the one that people resist most. And it is network and Facebook groups through podcast interviews, social content, clubhouse, and go ahead and get your first 3 to 5 clients. Now the good news is FG Society teaches this, and we also have a directory now so that all of our certified marketers go on hireamarketer.com, they’re listed on the directory. We also send out job bids, so there are lots of different types of these sites. I know there’s one for online business management, I know several virtual assistant programs that do this. So this is why it’s so important to invest in a program, depending on what you want to focus on, because you’re going to be able to tie into a network and get clients more quickly.

Alright so step six, once you have your few first clients, it’s time to create your first case study report. So use a lead magnet template for Funnel Gorgeous, use the free lead magnet funnel we give in FG Funnels. You’re gonna focus on how much easier, better, more efficient, more profitable it is to work with you. You’re going to showcase the ways in which a business could change with you there to help. You could also do a video with your pdf case study, and you’re going to make that a lead funnel. Put this on your website, your social media.

Now depending on how good the case study is, you could run traffic, but for most providers when they’re just starting, they’re just going to share it organically. It’s just a great free thing to start building an email list. You’re going to get a very, very slow trickle of leads organically. But you need to make sure to email those leads. So that’s step seven, because what we want to do is email those leads regularly with valuable content and encourage them to book a discovery call off your services page. This is incredibly important because we want to see if the case study lead funnel that you set up is actually getting the right people on your list. So that is what’s in step six and seven.

Now step eight, once you have five people to say yes to you, or if you’re booked solid, it’s time to raise your prices. You’re also going to want to hire an assistant to help you with things like proposals and onboarding and client management. This is also a great time to start reading the book, built to sell, it helps you productitize your agency or service based business as much as possible, so that you don’t end up with horrible, horrible {inaudible}.

So that’s step eight. Now step nine, it’s time to figure out an easy introductory service based offer. This is something you see your clients needing. It could be a fast, easy fix. Something you could do a lot of. Is it too time consuming? Things like audits, migrations, tech setups, speed optimization. For example we have providers that offer the FG Funnels set up. You wanna make sure that that introductory offer is less than $200. You want to do something that’s super concrete, painful and obvious that they can say yes to, and you’re going to build this as a simple hybrid services sales page. It’s going to be a sales page and an order form, and you are going to be able to start talking about this on social media, on email, in Facebook group, you can also attach it to the backend of your case study lead funnel, if there’s a relationship between those two, the free case study and the offer.

Now sometimes I recommend people actually demo this in a service provider webinar, which we teach, but you don’t have to do that. You can just do a sales page if you want. But this introductory offer is a great way for people to test out what it’s like to work with you.

And then finally in step ten, we’re going to start adding additional revenue to your business besides done for you work. So the easiest way to do this as a service provider, is to start building an affiliate arm of your business where you recommend tools and software that you use so you can get some recurring income without having to work for it. So software is great right. FG Funnels has a 40% recurring commission affiliate program. Hosting offers, affiliate programs, so If you are a project based service provider, this is going to be really important to kind of stabilize your revenue. If you’re a project based service provider you might also want to think of any sort of ongoing services you can offer after the project is done. If you’re retainer based, you might want to incentivize your clients to refer you to others with a referral program.

So in step ten you’re really sort of expanding out your revenue besides just your done for you services. Within 18 months you should be booked solid and really feeling the burn of an agency that’s growing quickly. You may need to hire, you may to dial in your services so that they’re even more specific and scalable. And this might be the time where you would start thinking about some digital assets that you could sell to keep your email growing while you manage your current client load.

So that is the ten step formula for service providers. I hope you guys liked that and appreciate that. If you do, please leave a review, subscribe, tag me on Instagram, tell everyone how awesome my podcast is. I do such a horrible job of promoting it, so I just try to give amazing content so you guys will share it. I think the next one I am going to do is the course creator formula. That will be coming next. Appreciate you all, talk to you soon.

Ep. 90 The Coaching Formula

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Hey everyone, how’s it going today? I want to start a new series; I actually started it last week on my email list. And I’m working on this new idea, and it’s all about easy to explain formulas for different online business models. And just because it’s easy to explain doesn’t mean it’s easy to do. But it will create a roadmap that’s pretty simple to follow.

So I’m thinking about creating these 10 step formulas for each of the different online business models, and I’m going to start today with the coaching formula.
Now you could technically swap out the word coaching and put the word consulting in there as well, but before I get started, I want to make it very clear that this particular formula is not for a done for you provider. I think in the next episode I will do a done for you provider. This is for someone who is selling their advice, their therapy, their expertise in a high touch one to one capacity. So that’s what I mean by coaching formula, or consulting formula.

So this also assumes that you have an expertise that people are willing to pay for. So if you are not an expert in anything quite yet, then you don’t want to start with the coaching formula or consulting formula. You’ll probably want to listen to my next episode when it comes out and do the done for you formula because that’s going to be a little easier entry point.

But let’s assume you have an expertise that people would pay for, this is the 10 step formula I would take you through. And this is not based on theory, this is based on actual case studies, working with clients that I came up with this. So this is going to take you about 18 months if you’re doing it part time. If you’re doing it full time you could do it much faster.

So the first step is simple. It’s going to be setting up your online presence on social media, since that’s the primary modality with which people use and advertise right now. That means get on Facebook, get on Instagram, for those two definitely. You many also want to snag YouTube, Clubhouse, Pinterest, etc. But for sure you want to make sure that you have your name and your social media presence really on brand for Facebook and Instagram. And do it under your name, don’t do it under a brand. Nobody knows you yet. Especially with coaching and consulting, you really want to focus on your name.

Step two, you’re going to get a domain and a professional email address. So for me it would be Julie@JulieStoian.com. You can use Google Workspace, it’s easy to get the domain and email address that’s professional. So those are the set up things that you need to do. Those are the first two foundational steps.

Now in step three, we’re actually not going to start with a website, we’re going to start with a funnel, and we’re going to set up an application funnel, of course it goes without saying that you should FG Funnels. The nice thing is we actually have a coaching consulting application funnel with the automations already built in. So it’s the actual page, it’s the calendar, it’s the emails, it’s the reminders, it’s everything. And that’s all done, all you have to do is go get an FG Funnels account.

So what you’re going to do is you’re going to sell a $3000 offer to start. It’s going to be a one to one offer and we recommend $3000 for about 12 weeks of coaching/consulting. Now that may change if you’re in an industry where that’s really high. Like if you’re teaching organizing or parenting, you may have to drop that. But if you’re in any sort of business to business, make money online, any high level expertise, whether it’s therapy, relationships, health, I would go with a $3000 one on one offer.

So you’re going to get the copy, the tech, the design, you’re going to get the application funnel launched on your domain. So that’s step three.
Step four is the hardest step, it’s the step people like to skip the most. It’s the most important of all the steps and it’s the one people resist the most, and you shall not skip it if you want to be in business. And that is to start networking through Facebook groups, through podcast interviews, social content, clubhouse, and get your first 3 to 5 clients. This will be a slog if nobody knows who you are. There will many days when you feel like it is not doing anything. I remember the first time I was, not the first time, but one of my clients it was their first time doing this step four. She messaged me and she’s like, “This is such a waste of time.” And I was like, ‘I know it feels that way, but it’s like you’re digging a hole. Eventually you’re going to hit water, but for the three days before you hit water, you’re just going to assume there’s never any water to be found.”

And I really encouraged her to set a number of conversations that she was trying to have every single day. And eventually that first client came and she’s like, “That was the hardest thing I’ve ever done in my life.” And I said, “I know, but it’ll get easier.” So step four is to network in Facebook groups, through podcast interviews, social content etc.

Now, step five. Once you have a few clients, now it’s going to be time to set up your first lead funnel. So again, you can use all the templates that we offer in Funnel Gorgeous and the free lead magnet funnel that we include in FG Funnels. You’re going to find a free offer that’s going to be something you run ads to, to start building your email list.

So once you have your lead funnel done, that’s step five, and step six you’re going to run about a thousand dollars worth of traffic, and you’re going to work to get your first 500 leads on your email list. That’s step six.

Step seven, go ahead and start emailing those leads regularly with valuable content and encourage them to book a discovery call off your application funnel. The reason why this is important is because we want to see if any of those people that you paid a thousand dollars to acquire are going to turn into one on one customers. Now if they do, that’s awesome. It means the lead magnet was good bait. If you can’t get any customers off of that email list, that could mean that the lead magnet isn’t quite the right bait for what you do. So that’s why that step is really, really important.

Okay, so in step eight, you hopefully have gotten another client or two from the method of running traffic to your leads and then emailing them. If you want to you can turn your ads back on and keep working that system to continue with lead flow.

Now step nine is sort of a little bit more advanced, but I find it works really well to go from having a base of clients to being booked solid. And that is to set up a weekly class with a limit of about 6 people and charge $50. Do something very concrete and easy to accomplish in an hour. This is going to be an introductory class where people can start to feel out what it’s like to work with you. You’re going to build this simple funnel and start talking about it on social media and email. You can also attach it to the backend of your lead magnet, once the class is ready.

And now when you’re networking, now you have several options. You have an application funnel you can send them to, you have a lead magnet you can send them to, you also have a really exciting introductory class that’s really affordable that they can come to once a week.

So step ten is to upsell people from your weekly class workshop into a discovery call for one on one coaching. And that is the ten step coaching/consulting formula. I have found that within 18 months you should be booked solid. And again, that’s with part time energy. This means about 10 paying clients, plus some leads, a few people coming to your workshop. And again, you could do it much faster if you have more time to dedicate to networking. But it’s going to work, this formula will work even if you are listening to this and you don’t even have a Facebook account yet. If you have an expertise, but you know nothing about online marketing, this will work. It is difficult to do, but it is simple to follow.

And so I think that’s really my goal for these formulas. So I hope that was helpful guys. If it’s helpful please share my podcast, tag me on Instagram, leave a review. And I will be back next time with the next simple business formula.

Ep. 89 Can You Afford A Big Purchase?

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Hey everyone, what’s up? This is Julie, today I want to talk to you about making decisions. Specifically about making decisions about big purchases. Now, whether this is in life or business, all of us have opportunities to make big purchases, right.

Whether it’s, “Should I take that vacation? Should I hire that coach? Should I do that mastermind? Should I buy that house?” It is hard to make decisions about whether or not you can afford something big, because we all don’t have a crystal ball of what’s going to come in the future, what kind of contingency plans we need, what’s a safe amount, your risk tolerance. There’s just so many caveats and variations.

And I’ve been thinking about this because I’ve been sort of on a money bender here, talking about 2020 and money advice, and now Alex and I are house hunting. And the question has been sort of thrown around, “How much can we afford for a house?” Now, keep in mind that in 2016 I made $325,000 and it’s now 2020 and I made $2.2 million. So there’s a big jump between, in those last 4 years. And the last time I tried to buy a house, we got preapproved for a $400,000 mortgage. At the time in 2016 that seemed really high. It also meant that when we did buy a house, which was at the time, $350,000 a 20% down payment was everything we had. It was, I believe I had $80 or $90,000 in a savings account. And we had to put down $80,000.

So we had like $10,000 for closing costs or that kind of thing, and it was a lot of money. It was a lot of what we had. I haven’t done anything like that since 2016. Now, there’ve been a few big purchases I’ve made, investing in coaches, masterminds, travel experiences, purchasing Club 33 for my family, which is the most ridiculous non-financially savvy purchase you can imagine. But I have not really had anyone from the outside come into my life and my world and say, “This is what you can afford.” And keep in mind that when a mortgage company, or a coach, or a financial advisor says, “This is what you can afford.” What lens are they looking through it for? So that’s important to ask yourself.

So we went through the preapproval process again, and we were preapproved for a $3 million dollar home, which completely caused a whole identity crisis moment for me, because I could not imagine living in a $3 million home. It took me a minute to grasp that that’s how far I had gotten because I had just been sort of focusing on my customers, focusing on my clients, delivering value, putting money away and living within my means. So to be told, “You can afford a $3 million home.” And then going on realtor and zillow and looking at what $3 million homes can do, created this gap for me of like, “That’s not who I am. But that’s who they’re telling me I am.”

Now, another thing I want to just make mention here is that mortgage people, they want you to take out a big loan. So I’m aware that just because I can get a $3 million loan, doesn’t mean I should. So a lot of us have these kinds of experiences in life. So here are 5 questions that I recommend you ask yourself when you’re trying to make a big purchase. Home, business, otherwise, it doesn’t matter.

The first question is, can you afford the initial investment? Can you pay it in full? Can you pay it over time? Do you put it on a credit card? Now, the reality is that for each person that risk may be different. So for some people, putting something on a credit card is not a bad decision because they know that the ROI and the return is going to be there. for other people who are more conservative, putting it on a credit card is not going to feel right, it’s going to cause them a lot of stress, they’re not going to be able to focus, and then it’s going to reduce their performance. So you need to make the decision, what does “afford” mean to you? The risk gets higher obviously, but that’s you know, different strokes for different folks.

So asking myself this question, paid in full, paid over time, paid on a credit card, can we afford the initial investment of a $3 million home, the answer is yes. Do I want to spend that kind of money? No. But of course as life would have it, Alex and I found a home, it’s listed at 2.2 million and so I was crunching the numbers. Can we put 20% down on that $2.2 million home? Yes we could. It would be about $450,000 down. So we could afford that, and we would want to put 20% down so we wouldn’t have to pay primary mortgage insurance.

So the second question you’re going to ask yourself when making a big purchase is, can you afford the ongoing investment? So if it’s a mastermind, maybe the initial investment is $5K and then the ongoing is $2K, can you afford that? And that really boils down to a percentage. And you can find percentages for every benchmark ever, again, it’s very personal. But you know, for home buying for example, they say that your mortgage should not be more than 30%, and your mortgage should include your taxes and your insurance. It shouldn’t be about more than 30% of your monthly budget. So if you’re thinking about a mastermind, that percentage might be different.

So for us, I was like, “Okay, 20% down, $18,000 a year in taxes, insurance, that would cost us between $8 and $9,000 a month at $2.2 million. And I bring home between $30 and 40, that puts us right at that percentage mark. So okay, we’re okay.”

Then the third question you want to ask, what are any additional costs associated with the investment. So this is, these are like hidden costs. So if you’re in a mastermind or coaching, are you going to need ad spend, are you going to need to hire people, are you going to need additional tools? You want to ask yourself those questions. Not because you want to be a Debbie Downer, but because you want to just know. For us we need to know, closing costs are going to be $30,000. It’s probably going to cost us $50,000 to hire movers and to buy some new furniture, because that house is big. So we need to think about that. And then we also need to think about things like, how much higher is the electric bill going to be? Do we need to hire stable hands and lawn care people? And all those expenses, you just want to think about them before you a big decision.

And then you get to do the fun questions. The questions that are really important because between time and money, time is far, far, far more valuable. What are the ongoing benefits of your investments, and can you get the money back in some way? I always like to do the benefits one first, and try to think of non-monetary benefits, because we can always come up with ROI type stuff, but what are the non-monetary benefits? When I think about people who’ve joined my mastermind, they don’t see it until they’re in it, but things like “Oh my gosh, when that happened and shit hit the fan, I didn’t quit because I had a coach and I had a team behind me.” Or, “I got a new referral relationship, I got a connection. I got an open door that I couldn’t have gotten opened on my own.” Things like that you know, really do have a monetary ROI but not at first glance, but are incredibly important.

So sit with your benefits and then ask yourself, “Will this help me create new money, saved money, or found money?” and new money is you know, new customers, new revenue streams. You know buying a new home isn’t going to create new money for us unless of course we were going to rent out an in-law apartment or something. Saved revenue would be things that are now more efficient. So let’s say you joined a mastermind and that coach helps you avoid mistakes and lost opportunities and not hire people that are going to cost you a lot of money, so saved money. And then found money, which means making more with what you’ve got. Getting your customers to spend more, buy more, that kind of thing.

So, you know, obviously for us personally, real estate is a pretty safe investment over time. Of course you’ll find plenty of people who say otherwise, but most of the wealthiest people on planet earth own real estate, so there’s that. In a worst case scenario we might not get all of our money back. But we could at least get our original investment back. So if we put $450,000 in, we probably would get it back, even if we had to sell. So you know, you want to ask yourself that question.

And the last question you want to ask is, “What stage of life or business are you in right now? And is it conducive to what you want to do?” and this is really the time/money question. And I’m reading a book called Die with Zero, it’s a very good read. I will warn you that if you are a spender be careful reading it. I am not a spender, I am a saver, so this is really helping me to see how important it is to not over-save.

Anyway, the question for us is like, “Well, if we’re not going to buy a big farm now, when are we?” We’re not going to buy it in our 60’s, so if we don’t do it now, it’s not going to happen. So I’m sitting with the idea of, am I okay living a life where that never comes to fruition. And if I say to myself, “Gosh, I’d be really sad if I didn’t get a chance to experience what that was like.” Then that’s my answer. And that ultimately kind of trumps all the other ones, because you find when you have that question before you, it’s sort of that life or death question, you find your decision making completely changes. You just can’t live there 100% of the time because otherwise we’ll all just spend money like it’s going out of style.

So those are the questions when evaluating a big purchase. Can you afford the initial investment? Can you afford the ongoing investment? What are the hidden costs of the investment? What are the benefits of the investment? Can you get the money back? What is the ROI? And what stage of life or business are you in right now and is it conducive to what you want to do?

Lots of people have been asking, and by the time this gets published, I’m sure we’ll have a bigger update, we decided to go ahead and put an offer in on the home, we will see what happens. We did not offer $2.2, we offered considerably lower, so they may reject our offer. But it has been a really fun exercise, and quite an identity shift to start thinking about these questions. So I appreciate you all, talk to you soon.

Ep. 88 My Best Money Advice for 2021

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Hey everyone, this is Julie, happy 2021, sort of. It seems like 2020 has bled into 2021. But nonetheless, we are still here, we are still standing. Today I want to talk about my best money advice for 2021.

I did a kind of state of the union recap, and a lot of people wanted to thank me for that, because I shared more realistically my numbers, what it looks like in the backend, so to follow up, I wanted to give you some really practical advice about how to think about your revenue in profits now.

So this is going to work for anyone who makes $60,000 a year or more, and that’s actually exactly when I started this habit. I remember it really clearly, I was starting to exceed about $5000 a month regularly, now the habit is like second nature.

So step one, get a bookkeeper. This will be a lot easier if you do that. And if you really, really don’t want to pay a bookkeeper and do your own bookkeeping, my bookkeeper who is now my CFO, Emily Volz, she has a course called Automatic Bookkeeping. It’s like $27 or $37, it’s totally worth it. She’ll help you get set up with Quickbooks. So whether you hire or you do it yourself, you really need to be able to see your monthly profit and loss, which really is necessary for the rest of this work.

So step two is to start paying yourself a salary. This is sort of based on the Profit First Model, if you’ve read that book. If you’re an LLC, this is going to be kind of pretend because in an LLC you don’t really have a salary, you don’t put yourself on payroll, but we’re still going to earmark it and act as if you are. Now if you’re an LLC electing to file as an S Corporation, you will literally put yourself on salary. So it can be done pretend wise if you’re an LLC or a Sole Proprietor, or you can just do it on payroll if you are an S Corporation.

So everyone asks, “How much should I pay myself?” and really only you can answer that question. But pick a number that you can start at. So for example, if you’re making $5000 a month gross, maybe your salary will be $1500 a month to start. If you’re making $10,000 a month, maybe the salary will be $4K. This exercise is very important because as you grow, and I think this happens with a lot of business owners, when they first start out they think, “Oh, I make $5000 a month, I keep $5000 a month.” And what we need to do is train our brain to see the gap, because the gap will only grow as you grow. So you’ll be stuck with a lot of disillusionment if you don’t get that under your belt. $5000 a month business is about a $1500 a month salary. $10,000 a month business is about a $4000 a month salary. So that’s kind of how you work it.

Now step three is to make a plan with any of that extra profit. So depending on how much you’re making, after you figure out your personal salary and your expenses, there might not be anything left. That’s okay, but the goal will be to have additional profit at the end of the month. So that’s the goal that we’re working towards.

But with whatever you have left, I recommend you do the following. You’re going to set aside 30% of your remaining profit and put it in a tax savings account. Now, I know that’s painful to do, but please trust me on this. And once you start making more money, over $300, $400,000 a year, you’re going to get to put more in, like 40%, and I won’t tell you that I put in 50%, but I do. And I don’t usually need to use all of it, but it is my cushion, because I am in a high tax state, I also have employees in other states, which forces me to pay state taxes in other states as well. So when you add that all up, its pretty bad.

Okay, so then with the remaining 70%, you’re going to want to divide that again. And this is what I do. I take 70% of that remaining amount, and I put it into my personal investment, banking accounts to use for whatever Alex and I wish. The remaining 30% will go into a business savings account. And that money can be earmarked for a Mastermind, an event, a new project, a new hire, etc.

So if you look at someone up in the 6 figure a month range, so let’s say an average monthly revenue of $150,000, I am going to say, $150,000 a month is you know, it’s over a million dollars a year for sure. It’s close to two million dollars a year. So a salary for that kind, let’s put it around $250,000. So that’s going to leave you with an average monthly net profit of about $70,000 left if you have good profit margins. So I would split the $70,000 in half and I would put $35 into the tax account, and the other $35 is going to be divided again. That $35 is going to be divided into 70/30.

So that means out of $150,000 in revenue I’m getting a salary of about $10,000 a month, and I’m also getting a distribution of about $24,500. Then I have $10,000 saved in business and my taxes put aside. Now this is all creating a system whereby I am not struggling with cash flow. I have my tax money growing, and if you want to put that in some interest yielding account or invest it so that at the end of the year, or quarterly, (you should be paying your taxes quarterly so you don’t get a fine), then you have all that money set aside, you’re not worried about it. You also have a salary and a distribution that you’re taking, which is what you live on or invest with, and then you have business savings which allows you to make decisions not out of scarcity, because you have a savings.

So I understand that for some people that kind of walk through this exercise with me, they’re kind of like, “Wow. So you really only see about $30-40,000 a month when you’re making $150,000? That’s awful.” Now, that will feel awful if you’ve been operating in the world view, the false world view, which is the number that everyone tells you they make per month is the number that you actually keep. So what I’m trying to do through my email list, through my podcast, through my posts, is change that paradigm. So that people stop thinking that a six figure month means a six figure monthly salary.

Once you get used to it, and it’s way easier to get used to it when you’re making less, you won’t see numbers the same anymore. So now when I see a hundred thousand dollar launch, I’m proud, and I’m happy, but I have real expectations of what that money does. And for those of you guys that are just kind of like, taking the pill and waking up to this, it’s going to feel hard. But trust me, if you start when you’re making less, it won’t hurt as much when you’re making more.

You know, when I see at the end of the year, okay, my gross revenue was 2.2 million, that’s amazing, I’m super excited. I already know what 2.2 million kind of funnels down to in my pocket, so I’m not living for the high that I think a lot people live for when they’re looking at attaining those big numbers.
So I had a former Digital Insider who’s now making multi-million dollars a year reach out to me and say, “Thank you for teaching me this lesson about money, because it kept my business running smoothly during Covid because I had this foundation.”

So you can do this no matter what your numbers are, trust me, you will thank me eventually. And really the person you should thank is my accountant, who helped teach me this habit 5 years ago, and it is now allowed me to create wealth in ways that many influencers who grew quickly cannot. I appreciate you all, talk soon.

Ep. 87 2020 Recap + Takeaway

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Hey everyone, oh my gosh. I meant to record this podcast at the end of 2020, but here we are in 2021. This was going to be sort of my 2020 recap report and takeaway, and it’s now January 11th. But I’m recording it on January 11, who knows when you’ll see it. But nonetheless, I’m here to talk about the year of all years.

I have to say, I did write this on my blog and I’ve been procrastinating a little bit on recapping 2020, and I think I feel so much conflict because this year brought so much stress and trauma, and crisis to all of us. But in the midst of it, there are so many gifts and lessons that I’ve learned about myself, my relationships, my business, that I don’t really know what to think about 2020.

And 2020 is also the year that I finally stopped keeping everything about my life and business in silos. You know, I was given the advice that you never, ever, ever want to talk politics or religion in business, and I think I held onto that for a long time, and 2020 was really the year where I finally broke free from that. And I have a few reasons why. I think one of the big reasons why I struggled to find my voice was because I was working in an organization and company that has values that are very different from my own. And it has taken me a long time to come to grips with how much of the real me I was suppressing in order to fit in a role that I was in.

You know, I have nothing but warm feelings and respect for the people over at Clickfunnels because they have been critical to a lot of my knowledge and expertise and visibility. So I just want to honor them in that, but there is a real thing that happened to me when I became a part of that company, representing that company, that my voice kind of went dormant. And that’s because my voice is in direct contradiction to a lot the things that their voice is in. So I left in 2019, but I think it took me 7 – 8 months to really feel my way back into the world.

So for 2020 I started talking about politics, the election, Black Lives Matter, the Coronavirus, and then I also started talking about fun things like plant based living and eating and gardening and birds, and all that kind of stuff.

So this year was interesting because I lost thousands of followers, in fact, I’ve culled my email list in half, and yet, my business is still growing. So I know there’s a really important lesson in there. It obviously sounds really cliché, but it is the stay true to yourself mantra and to continue to deliver value. And your business will be fine, no matter how dorky or unpopular your opinions may be.

So that’s sort of a big overview of some of the significant changes that have happened in 2020 personally and what you’ve seen publically through all my channels and my email list.

Now financially 2020 was a great year. For my revenue in 2020 it was 2.24 million dollars. And my net profit was 1.4 million. Now that is an enormous success, and also a really important lesson there, which is that my revenue in 2019 was 2 million, my revenue in 2018 was 2 million. So I know that 2018, 2019 I was working with Clickfunnels, so it was very hard to be a VP and run a business, so you can see sort of that stagnation of revenue growth there, because I’m not superwoman.

So this year was the first year, 2020, which was a crazy year, where I didn’t have any other obligations. I wasn’t working at Clickfunnels. So you can see that I went from 2 million into 2.2 million. Now that may not sound like a lot of growth, that may not sound exciting, but I have trained all of my clients and students to celebrate all wins. And the reality is that 15% growth year after year is actually excellent in the real world. 30% growth is amazing. And it only seems to be in the internet marketing world that people think that 100% growth is the only kind of growth that you can have.

Now to go from 2 million to 2.2 million is not quite even 15%. So I only grew, whatever, 8-10%. So I’m like, “Okay, what do those numbers actually mean? What do they actually say about what happened in 2020?” because you can’t just look at the numbers, you gotta look below them. And again, another reason why people spouting revenue numbers is not helpful. So a couple of things changed. Number one, I stopped promoting Clickfunnels as an affiliate in 2020, which means I’ve lost a lot of revenue, by no longer doing that.

Now, I still am getting some recurring revenue, but my Clickfunnels affiliate was in the hundreds of thousands of dollars. So this was a big sort of change for me. I stopped selling my create your laptop life membership. I had you know, about 700 or 1000 people in a $50 a month membership. I sunsetted that so that I could work on this new project, FG Society with Cathy. I also stopped selling TDG, that was my $2000 program.

So basically, I stopped selling everything except for Digital Insiders. So when I look at my revenue and I say, “Okay, I stopped selling most of what I’ve been doing, and I still grew by 8-10%.” That’s a sign that it was an excellent year. Right, because I mean that’s awesome. It means doing less but making more, which is what everybody wants. Now if you look at my net profit in my business, which was 1.4, the thing is that that is my most profit year to date. So even though I only grew by whatever it is, 8%, 9%, in 2018, 2019 my profit was less. So all in all 2020 has been my best year yet.

And that is despite the pandemic. I had a bunch of lost income due to people who couldn’t afford to pay because they were losing clients, you know there’s that ripple effect. So I did set up a scholarship fund for those people, so I absorbed a lot of that cost. So there’s just a lot of things that happened. And so I’m really, really proud of these numbers because of the story that they tell.

And a bunch of people asked, they said, “So does this include Funnel Gorgeous?” because a lot of you know that my personal business is Digital Insiders, but I co-own Funnel Gorgeous with my partner Cathy Olson, so people are like, “What? How does that work?” So I just wanted to kind of share that, because I didn’t really share it in my blog post.

So the 2.2 million that I earned in 2020 includes my post-net after tax FG distributions. So basically whatever Funnel Gorgeous makes, after the expenses, after we figure out the profit, then we cut 30% off for taxes, and you pull that out, and whatever distribution I get, and the distribution Cathy gets, that is included in that number. It turned out to be somewhere around 6 or 700 thousand dollars, right. So maybe a little bit less, I’d have to go back and check. But my point in telling you that is just to sort of create an accurate picture. And then my point also is to say that if I were an internet marketer who is trying to wow you with my pizzazz-razzi numbers, what I could have done is take my profit and my revenue from my business, and then taken out the distributions, and then just instead talked about my gross revenue at Funnel Gorgeous. And I could be like, “Well look, it was like 1.7 million in my business and 2.2 million, or whatever it is in Funnel Gorgeous.” And I could 2.2 and I could add 1.7, and I could be like, “I did 3 ½ – 4 million dollars this year.”

Now that would technically be a true statement and what would that number show? It’d be like, “Oh my god, she doubled her business. She went from 2 million to 4 million.” And that would perpetuate the lie that it’s easy to just double your business when you’re up at these high numbers. And I think a lot of people, it’s not sexy to say, “I went from 2 million to 2.2 million.” But that’s $250,000, how many of you listening would love to have a $250,000 a year business. How many of you have a $250,000 a year business and work so very hard? But that number doesn’t feel big at that level.

So this is what I’ve been trying to do, and you’ll see in my upcoming podcasts, that I’m really trying to kind of beat this drum to change the conversation around all of the stripe screenshots, and revenue numbers and all that kind of stuff.

So I have a state of the union address on my site, I recommend you read it. I’m kind of giving you the highlight, I went through and tried to figure out how many podcasts did I do, which I was probably super inconsistent with, as you guys know, how many blog posts, where I got to speak, how many emails I wrote, what kind of presentations I built, where I donated, what I was able to do with raises and bonuses for my team, and most importantly how much I was able to change my lifestyle so that I wasn’t burning out.

So that is the story of 2020 and I am incredibly grateful for everybody who has purchased from me, spoken about my business, followed, sent an encouraging word, I really value all of you. And I just thank you for being on this journey with me and if you have enjoyed my very inconsistent podcast, and you would leave a review, or share it, or tag me on Instagram, that would be amazing. Guys, let’s make 2021 a different year than 2020. I appreciate you all.

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