Zero To $1M in 12 Months: Step 7 of 8 - How To Double Your Business In 30 Days

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What's up everybody? Thanks for being here. I'm Ryan. Daniel moran. This is capitalism.com and today we're going to talk about the road to $100,000 a month. You'll get there when you have four products doing 25 sales a day at a $30 price point. And we have a predictable path to getting there. And when you follow it, you have a million dollar business. That's pretty amazing, pretty cool. We have hundreds of people who have done it. You can do it too. If you go over to capitalism.com playbook and you enter your best email address, you'll get our best resources, our free course. And you can see exactly how we take any business to $100,000 a month takes about 12 months by following these eight steps. Today we're going to talk about launching additional products. When to do it, how to do it, why you should do it. We're going to talk about the roadblocks that get in your way. How, how people get this wrong and how you can ensure that that second product, that third product are successes. So you have a predictable path to a million dollar business. You can double your business in 30 days when you follow this process. As long as you've done the foundational work that we've talked about up until this point, you can double your business in about 30 days. This is the part of the process that lets you know that $100,000 a month is in within striking distance. It's you now see that it is possible. You believe it, you see it and you have a process to do it. In case you are not aware, we're in the middle of an eight part series about building a business that gets to 100 sales a day. Because 100 sales a day is the equivalent of $1 million business. And up until this point we have done some amazing foundational work. We have talked about building an audience that you launch to. We talked about the processes for having a $10,000 launch. Then that is you getting into the game and getting those first sales. We talked about getting the first hundred reviews which will solidify that first product so that you've got a strong conversion rate. And it gives you the foundation for you to be able to recruit other people into your brand, into your network, into your content, so that you're building the flywheel to 25 sales a day. So we've built this process, this machine that gets us to 25 sales a day. Then we talked about building an ambassador list. An ambassador list is that group of people that are raving Fans. Those are the people who will voluntarily tell their friends about your product or your business. They're the people we've built a lot of goodwill with that will probably post about us and give us content that we can spread to the rest of the world. Today we're going to talk about launching the next product. When do you do it? How do you do it? Where do people get this wrong? Because a lot of people screw up this step. They get excited, they see they've got a business that's doing 25k a month, 25 sales a day, and they get really aggressive and they try to launch a bunch of products at the same time. And that is the wrong way to do it. That is where you mess up the whole thing. So where I show up at your house and I pee on your lawn and I tell you, you didn't listen closely enough because that's not how you do it. Today we're going to talk about how to do it. Well, we've built this machine that gets a product at 25 sales a day. We've also built a machine where we can predictably get reviews. We've built a machine that spreads our brand to the rest of the world. We're getting traffic, we're getting new exposure. We are not dependent on just Amazon or Shopify or Kickstarter because we have an audience that likes us. We have an audience that wants to buy from us. We have connections with our customers that want to buy from us again and again, and they want to buy additional products. We've built the foundation of $1 million business. Why don't people build million dollar businesses, even though I teach them how over and over again, is because they don't build that machine. Today. We get to launch more products. We get to launch a second product through the machine, which is in a lot of cases all it takes to double our business in about 30 days. Once we know that we can get one product to 25 sales a day, the subsequent launches that happen after that get to 25 sales a day much faster. In fact, it does more than just take the second product to 25 sales a day. It also can build the first product. When you have a second product and it's the right product for the right audience that complements your brand, you will not only get your existing customers to buy again, but you will also create the opportunity for people who have not bought from you to say, hey, I didn't like the first product, but this second product is exactly what I need. And so you create a whole New slew of opportunities for people to transact with your brand. Also, when those people buy that second product, they are now within your brand, which means that they're going to tell their friends about the first product or they might come back and buy the second product. The first time that I did this, I had a product that I thought peaked at about 25 sales a day. We thought that that was the top end of the market. So because we were the number one seller in the category, when we launched this second product and it got to 25 sales a day, the first product doubled. It went from 25 sales a day to 50 sales a day. What the heck is happening there? This is where the multiplier effect comes in. Because people who bought product number two only, they came back and sometimes bought product number one. There were also repeat orders. There were people who said, oh, there's another product available. I remember I liked the first one. I'm going to buy them both. So we passed that 25 sales a day ceiling by launching a second product. Some people will ask, why even launch a second product? Why not take the first product and take it to 100 sales a day? Mr. Podcast man, if your process works so well, why not just put all my eggs into the basket of this one product that is doing 25 sales a day and take it to 100 sales a day? And that's an excellent question. In fact, your profit margins could be higher at first if you just grow the first product because you don't have your cash split between multiple products. But here's why launching a second, a third, and a fourth product is so important. First you get the multiplier effect. People who did not buy product number one may come back and buy product number two because it was more what they were looking for or it solved a specific pain point that they were struggling with on their journey. So you get a second crack to get customers from the audience that you have been building. The second thing that happens is people who buy one product come back and and buy the second product, or they bought the first one, they had never heard about you before, and then they see that you had the first product and they come back and they buy that second product. The third reason why this is important is because long term, it gives you more margin at first. Having one product that does a lot of volume is more profitable because you don't have your cash split among multiple products. But long term, when you have multiple products, you can spend more money to acquire a customer because they will have multiple opportunities to buy from you. So again, if we have multiple things that they can buy, then our long term customer value is going to be higher. This allows us to be more aggressive in marketing, but it also builds our enterprise value. We have not talked about building enterprise value in this series, but eventually, when you have a business that does a million dollars a year, you will start to think about selling that business. You will think about how much money I could make if I exit this thing or if I raise capital. And you can get more money when you sell a business, if you've got multiple products that are getting customers and that add to your overall lifetime value of that customer. That's why launching multiple products is important. My goal, and our goal in this series is not just to make a million dollars a year in revenue. It is to build a brand that has value that other people want to come into and buy from. We can't do that with just one product. We cannot build a real brand that other people talk about until we have multiple products that serve one core person. In order to become a brand that is recognized in the marketplace, a brand that helps people go through a transformation on their hero's journey, we have to have multiple products that serve that customer on multiple different points of their journey. And that's why we have to think about what other products we will launch through this machine and, and get each one to 25 sales a day. The real question is, when is it appropriate to launch a second product? I remember being on stage at an event and I was on a panel and somebody came up to the microphone and they said, ryan, we're launching 10 products right now. How would you suggest that we do that effectively? And I said, you don't, you don't launch multiple products at the same time. You get one product to consistent sales and you build this system to be able to launch products. And then you do it again. And then you do it again. You don't throw a bunch of products at the wall and hope that something sticks. That may have worked in 2013. It does not work today. And the people who did do it in 2013 mostly struggled because there's no way to build a brand when you are just throwing products at the wall rather than building a brand with the firepower to get each product to 25 sales a day. So when do you launch the second, third, and fourth product? The first way of knowing that you're ready to launch a second product is when the first product is doing at least 25 sales a day. You've now proven that you can take one product to 25 and. And now we probably can take a second product to 25. But that's not the complete story. In some cases, a product could be selling so quickly or growing so fast that it makes more sense to let that ride for a little bit. I'm dealing with this with one of my brands right now. I have a little side project called Switch Supplements. And one of our products is doubling month over month. It's just screaming right now. And we are rolling all of our cash, all of our profit into bigger and bigger inventory orders. So what was a 1000 unit order is now a 3000 unit order and soon to be a 5000 unit order. So all of our profit is tied up in this one product. Now, we could put more money into the business to fund a second product. But what would make more sense is, is for us to continue growing that product until we had a cash profit. A cash profit is different than a paper profit. A paper profit simply says when we subtract cost of goods, we can see that we're turning a profit when we sell this stuff. But a cash profit is money in the bank. Right now, all of the money that we have in the bank is being rolled into bigger and bigger inventory orders. And it can feel stressful for a lot of entrepreneurs to. To launch a second product when all of their money is still tied up in bigger inventory orders for that first product. So a second indicator that you are ready to launch a second product is when you have a cash profit. You've got money in the bank and you've got the savings to be able to put it into the inventory for the second product. Some people would argue that once you have a cash profit, it's time to pay yourself. I say we don't pay ourself until we're doing a hundred sales a day. We take that profit and we roll it into product number two, and we take that to 25 sales a day. That is the indicator that we're ready. We've got 25 sales a day and we've got a cash profit so that we have the money to invest in a second launch. And the third indicator, and maybe the most important, is that you've built the machine. You followed all of the other steps leading up to this point, meaning you've proven that you can get 100 reviews. You've proven that you can take a customer and turn them into a raving fan, and you've got a base of them that you have a relationship with. Sometimes a product just catches fire. It's the right time, it's the right audience and you've got a following. And so people start buying it. And you're at 25 sales a day. Despite the fact that you don't have a hundred reviews. You despite the fact that you haven't built an ambassador list. And so you could justify putting your money into a second product. I say wait until you've built the foundation, which is all of the steps leading up to this point. Have you proven that you can get reviews? Have you proven that you can build a traffic triangle that gets you exposure and build your list and gets you raving fans? It's important to complete all of those steps because the that will virtually guarantee that your second product is successful. If you skip steps, then you're just throwing another product into the mix and you're distracting your focus from having that clear foundation. We don't want to do that. We do not want to distract ourselves from building that very powerful foundation. But once it's in place and we're taking 25 sales a day and we have a cash profit, now it's time to launch the second product. Assuming that you are ready, assuming that you have all of those things in place, what product do you launch? Well, let me tell you, the wrong product to launch, the wrong product to launch is a variation. Launching a second flavor, a new size, a different color does not count as as a new product. Now you can still do it. You still have my permission to launch variations on the first product that is doing well. But it doesn't count as a second product. For this process, a second product is complementary to the first one. Here's why. If you launch a variation of your first product, like a different color or a different size, you might increase your sales by 15 to 20%. That's really good. And if you've got $100 million company, that makes a lot of sense. But when you are building your first million dollar business, we want the second product to amplify the growth of the business. We want it to double the business, not add 10 to 25%. It makes no sense to put our attention into something that could grow it by 20% when a second product could grow the business by a hundred or 200%. That's why I say don't launch variations. You launch a completely different product. If someone bought a product from you once, they are unlikely to come back and buy the same thing in a different color. But they are likely to to come back and buy a complimentary product to the first one. Here's an example that will illustrate this. You might be familiar with Dave Asprey. Dave Asprey started Bulletproof. He started as a blogger, launched a mold, free coffee, whatever the heck that is, and he was in business. Bulletproof was launched. If Dave had wanted to be a coffee company, his second product would have been a dog dark roast. It would have been a variation of the first product. But is that what he launched next? No. He launched something called MCT Oil, which no one knew what that was at the time. And then it was upgraded MCT Oil and then collagen bars all the way up to having a thousand dollar vibe that vibrates and you stand on it or sit on it if you're weird. He launched complimentary products to the same person. He did not launch variations of the first product. That's why having your core customer in mind is so important for this 12 months to 1 million process. We think about what the next problem or the next challenge that your customer will face on their transformation and we develop a product for that rather than trying to milk the first product and launching variations for that. The way that we choose the second product is by asking what is the next challenge that my customer will face on their journey. Another way to think about this is what's the next product that someone would buy after they bought the first one? I have a friend who sells journals and sells millions of dollars worth of journals and their second product was a case for the journal. And I told them that that was a mistake. I said that's basically a variation or slightly compliment. You will get a sub segment of the people who bought the first product. So the next time they launched the product, they launched something that was a time management tool. That's the type of product that can build a brand rather than selling more journals or being a journal company that created the foundation for that business to become a productivity brand rather than a journal company. So we think about the person and what they will buy next on their transformation rather than just what complements or might be an upsell to the first product. I mentioned earlier, the supplement brand that I started on the side called Switch. Our bestselling product is a sleep supplement and it's a powder that you put into milk or water and it knocks you out. It's called Kill Switch Sleep like you're dead. If we were to launch a variation, we might do a different flavor mango or something that would be a mistake. However, if we launch a morning nootropic so that after the customer gets a great night's sleep, they Wake up and take the nootropic that sets them on the path for a very productive day. Now we're building a brand. Now we're building a brand that serves a person rather than one product with multiple variations. I don't mean to repeat myself, but when you have all your cash tied up in one product with variations, it becomes very difficult to scale. But when we have multiple products that serve the same person, that person will come back and buy from us again and again. So our second, third and fourth products and need to be complimentary to the first and serve that same person on the next challenge that they'll face on their transformation. If you don't know, here's the beauty of what we've done up to this point. In this process, we've built a base of customers. We built a base of followers and fans. Ask them. Ask them what they want. Ask, ask them what other products they buy. Ask them what brands they really love. The first time you launch a product, you may have guessed, but the second time you launch a product, don't guess. You've got people who like you, who have given you money. Ask them what they would want. My first time building a business, we did this all the time. My partner and I would argue about what the next product should be. We'd argue about what we should call it. And when we were ready to break up, one of us would say, oh, hey, we should just ask our customers. And then our customers would tell us. And it was an option that neither one of us had thought up until that point. When the customers tell you what they want and you give it to them, they're likely to buy. So the beauty of this process is that you're not guessing what's going to work on Amazon. You're not guessing what's going to go viral. You can ask your customers, your followers and your fans what would be value creating for their life. And then you create that. And here's the second beautiful part of that. If you involve your customers in that process of choosing the product, deciding what it's going to look like, the features that you're going to include, you're involving the entire audience in the launch process, which means that they're more likely to buy. It's a beautiful way to advertise your product to your best customers without coming across as salesy or markety. And if you're cash strapped, you could even pre launch the second product before you have the cash to do it. If you've got an audience of customers and fans who have Been following the first product and you develop a second one, but you don't have the cash to tie up an inventory. You can pre launch that second product and have cash in the door that you use to place the deposit for the second product and get it to market quickly. You can't do that if you haven't built the foundation up to this point. That's why this eight step process is so different from the traditional E commerce or Internet entrepreneur playbook that is about launching products, getting them to rank and extracting from the marketplace. When you've got a brand and a core audience that you serve, it sets you free to be able to serve that person and invite them to come back and buy from you again and again and say thank you at the end of buying. So we can launch new products. Once we're doing 25 sales a day and we've got a cash profit and and we've built the foundation of all the steps leading up to this part of the process. We choose our second product based on what would be complementary to the first product and serve the target customer on their transformation. If in doubt, just ask the audience and involve them as part of the process. Now how do we do it? How do we launch the second product and get it to 25 sales a day as quickly as possible? First, let me tell you how not to do it. Don't just launch it without announcing it. Don't just list it for sale and hope that people show up. And don't try to launch multiple products at the same time. I was once on stage at an event, it was an E commerce event. Someone came up to the microphone and asked a question. They said, ryan, we're launching 10 products right now. How do we do that effectively? And I said, you don't. You launch one at a time. You cannot have a good launch that builds brand. If your focus is distracted across multiple products, how are you gonna get a hundred reviews on ten different products all at the same time? Now maybe you can do it if you've got a few million dollars in funding and you've got a big team. If you're the owner of Liquid Death, don't listen to my advice. You've got tons of capital and tons of distribution. You don't need me. Why are you watching my videos? But if you're a scrappy entrepreneur, you have to be very protective of your focus. And that means that we take the same system that got us to 25 sales a day on the first product and we duplicate it over one additional product that Means that we start to tease our audience that it's coming, we start to warm them up and build towards the launch. That step three of this process, the beauty is you don't have to repeat step one or step two. You can go right to the launch and this time your audience is bigger and you've got customers. That means that the second product launch will be bigger than the first. So we duplicate the launch process on that second product. This time we have a secret weapon. We have our raving fans, we have a group of people that we've cultivated that supported the first product and and are bought into the vision of our brand. Use them. How do you use them? You might send them free product and get them to send you pictures of them holding the product or post reviews or say nice things about the second product. You're going to use that in your marketing. You're going to put it on your sales page, you're going to put it on social media, you're going to email it out to your list. You're going to use it as fuel to make that second launch as big as possible. And this time you've got built in customers, reviewers and ambassadors who will leave reviews for that second product, which makes it possible for that second product to get to 25 sales a day even faster. Then we might consider running pay per click ads or taking some of that feedback that we got and creating some short form content about it and putting it on TikTok shop or Instagram and linking back to our lead capture. We've got more to work with to get that product to 25 sales a day much faster. We don't move on to products three and four until that second product has completed the rest of the steps. You've launched it, it's got 100 reviews. You, your ambassadors are happy with it. That happens much faster the second time around. And the third time around it can happen even faster. This is why you can double your business in 30 days once you've built this process. Because you launch that second product, there's a multiplier effect and all the work that you've done up until this point is channeled over to product number two. Guess what guys? Now we have a predictable process to launch products and get each one to 25 sales a day. All we need to do is Repeat that process four times and we've got $1 million business. If you've watched this series up until this point, you can see that this is very predictable. Now you'll have challenges along the way for sure. When you run into them, my advice to you is to go smaller, go more micro. Be focused on connections with the people who are there rather than trying to grow your way through it. You will grow by doing the small things that don't scale as you do those things that don't scale. You'll build the foundation and the systems for the things that will scale. The things that scale are the systems that add 100 reviews. The things that scale are the relationships with people who will create content that you can use in your marketing. The things that scale are the customers who love you and bring you to the rest of the market. That's when you scale. You don't scale by skipping the process. You scale by doing this process very well and then repeating it over multiple products. So is that it? Are we at a million dollars? Well, this process will take you to $100,000 a month. I've seen it work hundreds of times. It's the same playbook that I'm following right now to resurrect a brand from the ashes. I sold a company in 2017 for $16 million. The company that bought it went bankrupt. I bought it in this terrible shape. Just a destroyed company. It was worth like nothing. I paid 4 cents on the dollar for it. And I'm running the exact same playbook to resurrect this brand. And we're right at a million dollar run rate. Just a few months into running this process, if you want to see the entire process for getting to 100 sales a day, best place for you to start is over@capitalism.com playbook. That's where you can download all of our free resources that will help you march down the road to 1 million. Now, where do we go from here? What do we do after we've launched multiple products? Well, there are a few challenges or speed bumps that people run into as they're scaling to $100,000 a month. We're going to solve those in the next video. In the last part of this series, we're going to talk about getting to and staying at $100,000 a month. So you've got a seven figure business. Because if you overcome those roadblocks and you can solidify that seven figure run rate, you've got a business that's not only making a million bucks a year in revenue and probably six figures in profit, but now you've got a business that you can scale and sell. And guess what? You're a millionaire. I've so enjoyed making this series with you. If you've enjoyed it too. Let me know in the comments or shoot me an email. I'm ryanapitalism.com thanks so much for watching. Go download the playbook and I'll see you next time. Take care.