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.
Later this month, I am publishing an in depth guide to share 10 core predictions that will impact online businesses over the next 5 years.
In this issue of the 7 Figure Letter, you’re going to get an early preview for the first couple of predictions.
Check it out below and be on the lookout for the full thing dropping soon!
Today’s newsletter is sponsored by:
This issue is sponsored by:
Flippa Insights: Unlocking the Power of Profit Multiples
Check out the latest stats from sold businesses and see how your online business stacks up:
– Flippa’s average annual profit multiple stands at 3.03x.
– It’s a good time to sell that content business you’re holding on to: Flippa sold a six-year-old content business for a peak annual profit multiple of 5.93x.
– Service business multiples have soared to a high of 5x the annual profit.
– For SaaS businesses valued at $250K+, the average annual profit multiple is currently 3.6x.
– The top Ecommerce profit multiple was 4.7x. This was a 19-year-old hair-loss prevention Ecom business.
Compare the value of your online business with the latest profit multiples and insight data from Flippa.
How Market Sophistication Will Change The Way You Market
Market sophistication and adoption evolves on a fairly reliable curve.
The further into the curve we get, the more competition there is and the more familiar the market is with the solutions available.
I believe that right now we are at the end of the ‘Early Majority’ phase when it comes to online businesses.
Which means that 50%+ of the eventual overall market is yet to be “activated”.
This is for both people who will start their own business as well as for people who will be viable customers for online businesses.
And while this means there will be more competition in the future….
….it also means that more people will become more educated, sophisticated, and ready to buy a solution.
It will take some of the load off of you to illuminate someone’s pain or problem.
And it will reduce the trust barriers and objections that a significant portion of the market still has with buying from a purely online business.
Online businesses are going to become fully mainstream. It might already feel like they are for you because you’re so deep in the world…..but it’s still not that way for a large percentage of people.
For those who are establishing their presence, expertise, and credibility now; there are massive rewards to be reaped in the coming few years.
So long as you continue to consistently put relevant messages in front of the right people; you’ll see momentum build faster and people turn from a stranger into a customer in less time.
Which means The ROI Method is going to become more effective.
The Economy — The Massive Elephant In The Room
There is a lot to examine when it comes to today’s economy vs. tomorrow’s economy.
But for now let’s focus on one key trend that is already developing:
The abundance of credit that was available, is no longer available.
Access to money and peoples’ confidence in continued access to money is shrinking.
Which means a growing segment of your potential customers are going to be scared.
The “doom and gloom” perspective is rising as you read this. You can feel it.
Every day people are having more conversations about what’s going to happen financially and to buckle up.
So even if people have resources — they’re expecting the worst. Which means they’re going to be cautious about how they use what they have.
And while this might be seen as a threat to your business, it is actually a significant opportunity.
You see, when times are good and money is flowing; people spend differently.
Life is good and they expect it to continue to be good so they spend on things that bring more pleasure into their life.
Holidays, a new car, clothes, nights out, experiences, or whatever.
Good vibes abound.
Which is great for businesses that sell the cars, the clothes, and the entertainment.
But for many online businesses, you’ve to spend more time warming them up to their problem.
Because they’re not focused on it, they’re using pleasure spending to avoid thinking about it.
They may not even be aware of their issues because they’re being overlooked + glossed over.
People will always try to avoid pain. When times are good, they can mask pain with pleasurable spending.
But when times are bad, people get scared and they get more resourceful.
They are more motivated to build for a better future + fortify against a difficult present.
They will spend money wisely to avoid the pain they’re living in.
Those pleasurable experiences are not going to solve their problem and they know that.
So if you’ve got the solution, and it provides them with a way to move out of their current situation into a better one, in an economy where times are tough…
Then you don’t have to spend as much time warming them up to their problem. They’re already thinking about it every, single, minute of the day.
The economy is absolutely changing. It isn’t just on the news.
And I’m sure you already understand that it’s not new news at this point.
But for you as an entrepreneur, your number one job will be to solve more problems.
Because with the way the economy is going, you can be sure more of them will rise.
1. Ready For A Traffic Source That Delivers A Scalable Number Of High Quality Leads? — On Tuesday October 10th at 2pm PST, we at Sponsorships.com will be live to share the 5 steps you need to run profitable campaigns.
2. How to Build A YouTube Channel That Runs Without You — An “easy” prediction is that video is going to continue to dominate how people spend their time online. Ready to “graduate” from a content creator to scaling a business through video? Check this article from Olly Richards
3. 5 Reasons To Attend A Business Retreat — Business coach Angela Henderson shares 5 ways your business (and your mind) will grow when you attend the right retreat in this article published on Online Business Owner.