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Create lots formula

this video was inspired by an email that I recently got from a subscriber named Wendy so Thank You Wendy for reaching out and asking this question Wendy wanted to know how realistic is it to actually make a full-time income with just one online course so I thought that it would be useful to break down the process that I used to make about $10,000 a month fairly consistently with just one of my online courses now in my case that $10,000 a month is not all profit I want to be completely upfront and transparent about that there are some expenses involved and I'll tell you exactly what those are so that you can see both my gross revenue and my net profit after all of my expenses are paid however the amount that I make per year with just this one online course adds up to a very respectable full-time income or in my case a very healthy side income that helps to stabilize my main business which interestingly enough has nothing to do with selling online courses so first let me give you the basic details about this course the price point of the course is a hundred and forty nine dollars so this is not a very high priced course some would even say that it's a little bit on the low end I do use Google Ads to bring in targeted traffic to a landing page on my website that contains an opt-in for a free mini class this is how I kind of get potential students into my world now I don't use facebook ads to promote this particular course because for me they just aren't as effective as Google ads are so I've tested both of them Google Ads worked better for me this may or may not be the case for you depending on your course topic and the specific niche that you are teaching it but this is a very important part of my process because without running those ads I wouldn't have the traffic that I need to hit ten thousand dollars a month in sales so the landing page that I run my ads to is just an article that answers a specific question that I know most if not all of my students are searching for this is another important part this equation the blog post works because it's closely related to the topic of my course and so I know that the people who are reading it are going to be the people who are most likely to purchase my course eventually now at the end of the blog post I have an opt-in where people can sign up to watch a free mini course which I deliver using teachable and then at the end of that mini horse is an offer to sign up for my full course for 149 now at the same time that this is happening I also have an automated email sequence that I set up through convertkit that starts running as soon as someone opts in for the free mini course this is actually really easy to set up because teachable and convertkit integrate with one another so whenever someone signs up for the free mini course on teachable teachable then talks to my convertkit account and tells it to start running the automated email sequence automatically for that person and my email sequence consists of four educational emails that go out each day for four days these emails basically just reiterate the most important points from the free mini class now after the four days the educational email sequence turns into a sale sequence where I start promoting my full course for another three days so a full email sequence is just seven emails that are delivered over the course of seven days now one thing that I do that is really effective at increasing my sales is I attach an automated deadline for enrolling in my course so what that means is that if someone does not enroll in my course by the end of the seven days that's the deadline this software called deadline funnel will actually lock them out of the sales page and they won't be able to enroll until I reopen enrollment at a later date having a deadline on your course enrollment can be really effective because it forces people to make a choice they have to choose whether to join at this time or not they can't just sit around and put off making a decision which is what most people like to do with the deadline funnel software you can set all of this up in advance so that it is completely automated I so now you know how my sales strategy works now let's talk about the numbers and you can use this equation that I'm about to show you to reverse engineer your own core sales to hit whatever income goal you want so my goal is 10,000 but maybe you're just getting started and 3,000 a month sounds really good or maybe you want to go for 5,000 or 15,000 or 20,000 it doesn't matter this formula will work for whatever income goal that you have now my income goal for this one course is 10,000 a month that is something that I decided on in advance and I'd highly recommend that you decide what income goal you want to hit in advance as well so then you know what your target is so this $10,000 number is not a number that I just happened to hit by luck or chance it's something that I planned for and it happens deliberately and predictably every single month with some small margin for error so some months I do make a little bit more some ones I make a little bit less but it all averages out to around 10,000 a month and the reason why I've been able to hit that so predictably is because I follow this formula religiously so here's how the formula breaks down so since my course costs 149 dollars that means that I have to sell 67 units or enroll 67 students every single month this breaks down to about 16 sales a week or 2.3 sales per day so these are not crazy numbers and if your course happens to be priced even higher than mine then you would need even fewer sales to hit 10,000 a month now I know from tracking all of my data for months and months that about 5% of the people who sign up for my free mini course end up purchasing my full course at the end of that seven-day email sequence so by the time the deadline rolls around five percent of the people that have gone through that mini course end up buying so what this means is that I need to get one thousand three hundred and forty people to sign up for my free mini course every single month in order to hit my 10k income goal so now that I know how many leads I need I just have to figure out how to actually get these leads and I do this by sending targeted traffic to the landing page that I set up on my website now by targeted traffic I mean that I'm only sending people to my website who are searching for the specific question that my blog post answers and I know from tracking all this data that it costs me about one dollar and 25 cents to get one lead or to get one person to sign up for my free mini-course now this is my cost based on the specific keywords that I'm bidding on so your cost per lead will be different because you aren't going to be targeting the same keywords that I am so your cost per lead could be a little bit higher or it could be lower but it's just going to depend on what keywords you are targeting now I think it's important to note that my landing page or the blog posts that I'm sending people to with the ad plays a role here because I've tweaked it and I've tested different things over time so it works pretty well at getting people to sign up for my free mini-course so just know that your landing page or whatever you're sending people to is also going to play a role in your ad cost because if it converts well you're going to spend less money per lead if it doesn't convert as well you're gonna spend more so it is worth taking a little bit of time to try different things with that to test things to tweak things to see what's going to convert the best for your audience all right so now I know that in order to make 67 sales of my course in one month which will add up to ten thousand dollars I'm going to have to spend one thousand six hundred and seventy five dollars on Google Ads every single month now if that number sounds scary to you and it was definitely intimidating to me at first I thought there is no way I'm gonna ever spend sixteen hundred dollars a month on ads but I actually started out with an ad spend that was much lower than that I started out spending like $50 a month and then once I figured out that I had a system that was profitable then I started spending you know $100 a month and then five hundred dollars and then eventually I got up to a thousand and then sixteen hundred and things it kind of capped off their like you you can reach a certain point we're spending more money on ads doesn't necessarily lead to more sales and this is kind of the point of diminishing returns that I've reached with this particular course some other courses in different niches you can just keep spending and keep spending because there is a big enough audience to absorb all that ad spend but for me since my course is in a pretty small niche there's only you know a certain number of people that those ads can be shown to every single month and by just throwing more money at it didn't necessarily lead to more profit so this kind of $10,000 a month point for me for this course has been like the sweet spot in all of this so this is you know these are my numbers and this is you know an example that I'm showing you you don't necessarily have to cap out at ten thousand dollars a month if your niche allows for it and you can keep scaling profitably go for it but I just kind of wanted to show that you know this is the ad spend that's required for me to hit ten thousand dollars a month you can start out with a lower ad spend if your goal is to make a lower profit every single month but you know ultimately you kind of have to test things and find out what that sweet spot is going to be for you so also consider the fact that I don't have to pay for all of these ads upfront because I have this automated system in place I'm making core sales every single day I'm making between two and three sales every day so what I'll do is just take some of the money from those core sales and put it back into my Google Ads account that way at the end of the month that account is at a very manageable level and I don't have this big ad bill that I have to pay off all at once so when you think about it that way and just pay it off incrementally or as sales come in it's really easy to kind of manage that ad spend not let it get out of control and not have this giant scary bill to have to pay at the end of the month so now my net profit after my ad spend is down to about eight thousand three hundred and twenty-five dollars but I do have a couple of other expenses involved with running this course so I have a subscription to the teachable Pro plan which is 99 a month this is where I actually host my course I also have a subscription to convert kit which is $29 a month this lets me automate all those emails and automate my sales sequence so that I'm making those course sales on autopilot and then I have a subscription to Deadline funnel which is 37 dollars a month and that's what lets me have those expiring sales pages so that I can actually have a deadline for people to enroll that's based on when they came into that free mini-horse so my ad spend and software expenses combined add up to about one thousand eight hundred and fifty dollars per month which leaves me with an actual profit of eight thousand one hundred and fifty dollars per month or ninety seven thousand eight hundred dollars per year before taxes for just this one online course I think that most people make this process out to be a lot more complicated than it actually is but it really is just a math equation so here's what you need to do if you want to apply this strategy to your own online course so first you're going to have to come up with a simple sales funnel idea so mine was just a blog post a mini course and then an automated email sequence then you're going to have to test it out so that means you're going to have to drive traffic to the first step of your sales funnel so for me I use Google Ads to send people to a blog post now you don't have to use paid traffic for this you can use free methods like social media or SEO or things like that the problem with that is that it is going to take a lot more time to collect data and it's also not a predictable source of traffic that you can control you can't control how many people are going to come over to your website we're coming to your landing page from social media or through SEO when you use ads like this you can control exactly how much traffic is coming to your site so it makes this whole process predictable and that's important if you want to be able to hit a particular income goal every single month but in order for this to work you have to track your numbers so you're going to have to look at how many people are coming to your blog post or landing page and how much is that costing you per visitor this is also called your cost per click then you want to track how many of those people are opting in for your mini course or whatever lead magnet you happen to be using now once you know that number then you can calculate your cost per lead by dividing the total amount spent on ads by the number of people who opted in now Google will do this for you automatically inside of your Google Ads account if you set up conversion tracking then you just need to track how many of those people are buying your full course this is your sales conversion rate once you have all of this data you can set an income goal and then reverse engineer this process by figuring out how many leads you need to get in order to hit that income goal so for example you would divide your sales conversion rate by the number of sales that you need in order to reach your income goal and that will tell you how many leads you need since you now have all the data on how much each lead costs you you can calculate how much you'll need to spend on ads in order to hit your revenue goal now there's obviously some trial and error involved with this so I recommend starting out with just a small ad spend to start and then scale up once you know that you have a system in place that is profitable now if your sales sequence is not profitable after sending a couple hundred people through it you need to look at each of the component parts and try to figure out what improvements need to be made and then test again so for example if I'm driving a lot of traffic to my blog post but no one is opting in for my mini course I might need to try using a different often offer like a PDF or a webinar or something else instead or maybe the content on my blog post just isn't compelling enough to make someone want to sign up for the free mini class so I can try tweaking the content a little bit to see if that makes a difference now you can also look at your Google Analytics to see how much time people are spending on your blog post or landing page if they're leaving right away that might mean that you need to work on making the content more interesting and compelling and then if you are getting a lot of opt-ins for your course or whatever lead magnet you want to use but those leads aren't converting to sales then you need to look at the emails you're sending or maybe your sales page or even the content of your mini course to see if you can improve it so as you can see this really is a scientific process that relies on tracking and analyzing data and then making little incremental improvements until you achieve the results that you want so start with a hypothesis of a simple sales process that you think could work for selling your course then send traffic to it track those results make improvements then repeat and that's how you will reach 10,000 a month with your online course and beyond all right if you liked this video please give it a thumbs up and subscribe if you'd like to see more videos like this thank you so much for watching I will see you again next time