(And How This Affects Facebook Groups/Communities In The Future)
I've had some incredible conversations lately.
Conversations concerning how to BUILD, SCALE and (perhaps) SELL businesses... while minimizing stress, burnout and getting a work-life balance that you can actually call that.
Here are 3 core lessons that have made that light bulb go off for me& why MRR is going to be the focus of everything we focus on going forwards in this group.
๐๐๐ฆ๐ฆ๐ข๐ก ๐ก๐จ๐ ๐๐๐ฅ ๐ญ: โ๐๐๐ค๐จ๐ฆ๐๐ง๐๐ข๐ก + โญ ๐ฅ๐๐ง๐๐ก๐ง๐๐ข๐ก = ๐๐๐ฅ๐ข๐ช๐ง๐
It's very simple.
Step 1: Get a client (on a monthly payment)
Step 2: Keep a client for as long as possible
Step 3: Repeat steps 1 & 2 for as many clients as possible
Let's look at this and how it works.
Let's assume you have a high ticket model that has a fee of $2.5k/m & you get just 3 clients a month for 6 months.
- Month 1 = $7.5k
- Month 2 = $15k
- Month 3 = $22.5k
- Month 4 = $30k
- Month 5 = $37.5k
- Month 6 = $45k
That's THREE clients a month taking you to $45k/m in cash collected at month 6.
3 closes come from 10 sales calls a month if your calls are actually qualified and you've got a reasonable sales process that has you closing 30% of calls.
That's 2.5 sales calls A WEEK.
Easily something you can do while growing as a solo biz owner, and even easier when it comes to hiring.
Compare that to the $5k one-off programs, where you'd need to take on 9 new clients a month.
Closing 30% that's 27 calls a month.
Not to mention the fulfillment headache on the back-end.
Been there. Done that. Never again.
๐๐๐ฆ๐ฆ๐ข๐ก ๐ก๐จ๐ ๐๐๐ฅ ๐ฎ. ๐ฃ๐ฅ๐๐๐๐๐ง๐๐๐๐ ๐๐๐ฆ๐ ๐๐๐ข๐ช = ๐ฆ๐๐๐จ๐ฅ๐๐ง๐ฌ.
We've all had great months.
And months of 0.
We all know the mental strain from having seemingly great cash flow to a MASSIVE lull and wondering why on earth we started business in the first place.
I personally can't stand the feeling.
And I refuse to create a monster of a business that keeps me feeling like I have to hustle like a mad man just to hit a target.
Recurring revenue is predictable.
You can model for it.
It gives you SECURITY.. and that's true for your:
- Own personal finances
- Your stafff
- Your expenditure etc
Imagine the levels of security you could feel if you knew that you were already starting the month at $50-100k no matter what.
That's the power of MRR.
What is your experience with MRR? Let's hear it in the comments..