How I generate $5,900,000 per month on Shopify

So in this video, I'm going to talk about how we got to a point where we were responsible for $5.9 million a month worth of revenue being generated for our clients and the businesses that we work with, and how we're taking that to $100 million a month over the next few years, how we're going to grow this portfolio from doing around $70 million a year worth of revenue to $1 billion a year plus. One of the fastest businesses that I've seen growing across our portfolio in the last 12 months is a business that has gone from zero to $500,000 a month in 12 months selling physical products on Shopify. And if you look at the customer ascension, a customer comes in the door, they spend $100 to $200, and then 2 months later they'll spend $300 on something, and 4 months later they'll spend $600 on something, and they continue to spend more and more money as time passes. And this business has set itself up in such a way that it can continually increase the value of its customer base over time. It doesn't just have a stagnant, a plateauing LTV where somebody spends $5 month 1, they spend $5 month 2, they spend $5 month 3, and over time it grows up, it goes up in a steady line. The customer journey itself, the customer spending itself goes up in this kind of hockey stick where you have somebody spending a little bit of money at the beginning and as they really fall in love with the business's products and the business's team or whatever it is that the business is offering, whatever value the business is providing, it starts to compound as the customer falls in, falls in love with the, with the business and the products. And that is what you want to build in with your business. If you're, if you're trying to start something online, if you're already selling a product online, if you're selling physical products, then you need to develop other high-quality products that create this opportunity for your customers because your customers want to buy more from you. But most businesses fail because they do not have anything else to sell. Apple is a multi-trillion-dollar company now because every new— every year they give you better products to buy and they give you the opportunity. If you are a true Apple fan, if you truly find value in their products, they give you the opportunity to go and spend more money with them. I can go to an Apple store and I can spend $20,000 to $30,000 right now on new stuff if I want. And I can do that every single year. And as a result, Apple can make tons and tons and tons of money off of me. One of the issues most businesses face is not actually getting customers. When you're first starting out, getting customers is tough and it's challenging to figure out how to get people to buy something from you. But once you have started to master the art of customer or client acquisition, getting customers and clients stops being the problem. The problem is actually how to make customers worthwhile to the business over the long run. What most people get stuck with and what you see lots of these online gurus and other people on the internet struggling with is they get stuck in a loop of constantly trying to sell new products and services as a way to get more customers because they haven't figured out how to monetize the customers that they have right now. So most of these gurus and online business people sell something upfront and they'll sell you a $1,000 course or a $2,000 course, but they don't have anything else that they're selling you for a long time. So if you really love their course and you really love their product and what they're doing, there's not much else that you can actually buy from them. They can't grow their business as quickly. So they do this crazy, really quick scale. Lots of them will scale from $0 to $100,000 a month and they'll be making all of this revenue. But then they'll get stuck and they'll start spending all of the money that they're making on marketing and trying to figure out how they can get more and more and more customers. And over time, getting customers gets more expensive. If you're selling the same thing with no innovation, it gets more and more expensive to sell the same thing to new people because they've already been exposed to it. And there's lots of other— there's typically lots of other people selling something similar in the marketplace. The reason that they do not compound incredibly quickly. The reason that they struggle to go from $100,000 a month to $1 million a month or $10 million a month is because they have not built a compounding effect into their business. And that's what I want to talk about in this video, is how to build that compounding effect that you get where a customer comes in to the business and might spend $1,000 in the first month or $5 on their first purchase, whatever it is. But on the second purchase, they spend more money than they did on the first purchase. And on the third purchase, they spend more money than they did on the second purchase. And what you truly want to do with any business is create a customer retention model where people spend money on the first purchase and on the second and third and fourth and fifth and further purchases, they spend more money every single time. And that is how you build a truly compounding business over the long run. So to give you some background, to go back a few years in Flax's history, when we first started, we had a way to retain our customers. So we're an agency. We have an agency partnership model where we partner with businesses. They pay us monthly fees. We also get some commission from the money we make them. So we have a bit of a way built into the company from day one to actually grow the revenue we were making with, from customers. And we have customers from years ago that first started paying us $1,000 a month and are still with us to this day, paying us more than $10,000 a month. So these customers have compounded over time and they weren't just worth $1,000 upfront, but they're now worth hundreds of thousands of dollars. For context, our top spending client so far this year at Flax, our top spending customer has spent over $270,000 on our services. And our challenge as a business is continuing to, to develop that and figuring out how we can get our average client from spending $10,000 a month to $50,000 to $60,000 a month. Now, that is how we continue to get a compound effect from our business as time passes. When you have a high quality product that people like, most people don't spend enough time building out other high quality products that people can buy from you. So they get stuck in the never ending loop of trying to get more and more customers and all of their customers kind of come in through the door, they buy something and then they drop off the other side. They just, they just disappear. And then now they go and start buying what they need from someone else. And your goal with business is to retain your customers for as long as possible. And that doesn't mean selling the same thing forever. It often means adapting to what your customers need.