7-figure Letter Issue #10 – The road to 7-figures…

This is a new weekly newsletter that will be focused on going “deep” on a specific framework, method or strategy for scaling past 7+ figures in your online business.

Want to get an email when I create it? Sign up here.

BROUGHT TO YOU BY MODERN BUSINESS ACADEMY

Why does it take so longer to hit $1M?

7-figures, in the online space is the holy grail.
Some people make it look easy and in truth, when you’ve done something once, it makes it easier to do it again and again.

However, one thing people don’t talk about a lot? 
How difficult it is to keep $1 million. 

Seriously, it’s very difficult and I want you to understand how difficult it is….

Because if you haven’t made $1M…
you may have unrealistic expectations
and if you have… you may sit and wonder…
“Where did it all go?” 

Let’s do a little math…
Let’s say you get to $1M per year. 

Generally speaking, for an online business, if a business is growing quickly we’re going to look at roughly 20% profit margins. 

Meaning… if you scaled from $250K -> $1M/yr…
It’s likely that unless you had an unfair advantage…
(no traffic costs, no team, your brand, being an influencer, etc) 

That your $1M will net you (before tax) of about $200K…
Generally speaking, in a business that grew this quickly, it also means that’s before your pay or tax. 

Which means, more than likely your $1M in revenue made you profit almost nothing… unless you live in a place with low or no taxes. 

So… let’s go to the next year…
Let’s say the next year you’re focused on profit and optimization. 

Now? 
It’s likely that you would be looking at a 35-40% margin. 

So, if you didn’t grow at all, you would keep $350-400K. 
Let’s call it $400K. 

Thing is now? 
You’re in a higher tax bracket (in most countries)…
On top of it, more than likely you upgraded your lifestyle…

This means, that you’d probably again… get to keep about $100K.

So far we’re pretty far from $1M in the bank? So what do we do?

Today’s newsletter is sponsored by:
Modern Business Academy

Right now, get all of my content since 2017… 

Plus all of my content, workshops and courses going forward…

Plus… 2+ Q&A Group calls with me…

And our new community we’re about to launch…

For just $97/mo…

Seriously, if you’re still reading this, it’ll take 45 seconds to get in and it’ll be super worth it– promise!

So… what do we do about this and how long it takes to get to that $1M mark? 

Well… you can read the entire Twitter thread and my suggestion right here…

(Don’t forget to give a follow if you’re “into” Twitter) 🙂 

Talk soon…
– Scott 

Here’s a few things I thought you might love…

1. If you’re not signed up for Online Business Owner Digest, I highly recc. that you do. 

2. If you’re more of the “marketing” type and want to dive deep into the latest marketing “stuff”, you might like The Growth Memo. 

3. A while back I acquired a journal company, called The House of Routine, I’d love to get a copy in your hands. You could get 30% off on the whole store by using the coupon code “SO30”

That’s it for this 7-figure letter. I publish new one every Sunday. Make sure to signup here to get yours.