A founder breaks down the math for hitting $1M in revenue: 4 products, 25 sales a day, $30 each. They built a supplement brand called Switch using this formula, starting with a focus product called On Switch, then adding a sleep product called Kill Switch, all aimed at entrepreneurs and high performers.
That's what allowed this brand to become a million dollar business, even though the first product didn't work out so well. How do you build a million dollar business? We start with third grade math. If you have four products that sell 25 sales a day at a $30 price point, that's a million dollar business. That's our starting point. We reverse engineer everything into that formula. So what four products are we going to sell? How do we get them to 25 sales a day? And how do we price them so they're at least $30 each. The real secret is to choose one core type to serve. And I'm going to show you an example of this. Okay. This is one of my brands and it's called Switch. And Switch sells supplements. This is a sleep supplement. This is a focus supplement. The core demographic is entrepreneurs or high performers, people like me. And we originally launched this product called On Switch. This is a focus enhancer. It worked really well, but it tasted terrible. But the brand really took off when we launched the second product called Kill Switch. Because if you've got an active mind, if you're always thinking about your projects, you need something that just knocks you out and makes you sleep. This is the same target market. If we had been obsessed with only selling focused products, the brand probably would have never worked. But because we knew who the person was and we knew what other pain points we could solve with other products, this second product really started to take off. And now it's a million dollar business. We needed to nail the person that sounded dirty and I didn't mean it that way. We had to be clear on who we wanted to serve more than what we wanted to sell to them.
