If you don’t want to read it, you can watch this video.
Let me give you some new lingo for this conversation. When I was selling physical products, the average customer was worth about $500 a year for us. Why is this number important? When you know this number, it is really simple math to figure out how to build the income you want. So, if we get 2000 customers, that’s a million dollars.
Every business model does not lend itself to these types of calculations. Let’s take Craigslist. Unless you sell the type of product where the customer is going to consistently buy from you over and over again, it’s really hard to get that kind of value from each customer. This is where the slow $100 comes in.
The typical Craigslist or garage sale transaction, that’s going to represent that fast dollar. You buy some stuff and you flip it. Now, you don’t get a lifetime customer. Why is this important?
By having customers that will buy from you over and over again, you can build that business without reloading and starting from scratch each time to attract all new customers. You put yourself in a position to get wealthy slowly.
It’s very easy to make that fast dollar. You go out and buy something cheap and flip it. Here’s the problem with that business model. You’re always reloading. Unless you scale and get staff, you’re caught in this perpetual hamster wheel. You might be making good money, but the minute that you step off that hamster wheel, your money stops. You don’t get into year after year growth. You don’t get into the average customer value. That’s the difference between hustling and actually setting up a business that can make money when you’re not around.
Right now, my business is in hustle mode. I have four streams of income from this channel. Every day I make sales. There’s sales to the Gumroad store. That adds up to more than my AdSense. That’s passive income. Then there is AdSense. Then there’s me doing streams. Then there is the selling of products which makes the most money.
You can make a million dollars a year in the fast dollar business. You are working incredibly hard. The minute something happens to you, your money stops.
So, I would suggest that if you are in that fast dollar mode, use that to support yourself. Use that to put together some reserves where you can start building a business model that works along the slow $100 model. Because if you don’t, something is going to happen sooner or later.
I’ve had one event where we had to shut down the business. We both got sick. We had to shut it down. It was a done deal. We couldn’t do it. We didn’t build it right. We didn’t hire managers. We didn’t hire people to buy stuff, so when we got sick, there was no more business. It was pretty brutal.
Then I had a situation where I got sick and almost died with this business and I was in the hospital. It took me six months to recover. A lot of you didn’t know it because I would put myself together and do a video. Because this business model operates on average lifetime value of a customer and it has a lot of automation, I made more money when I was sick.
When my partner passed, I was pretty heartbroken and I didn’t really do shit for six months. I put up a video once a week or every two weeks and that went on for six months. My money continued to come in because this business was built differently. It wasn’t built on the fast dollar business model.
Many people who are in the fast dollar mode are not looking at the intricacies of the slow $100 model. They’re not paying any attention to it because they are hustling hard. That is something that is really, really important.
If you’re broke, pick a service business you can stomach. You don’t have to be in love with it. It is one of the fastest ways to turn your income situation around. Go watch the video, How to Start a Service Business. It’s on this channel. If you’re broke, you can’t be really picky about your business model.
It takes time to grow an online business. On this channel, I didn’t make any money for three months after working every day. This was my full-time gig. But once again, I had $300K in the bank after I liquidated everything in the warehouse. I had reserves. I put myself on a $1500 budget and gave myself two years to make this work.
Amazon is a fast dollar business. Craigslist is a fast dollar business. Facebook Groups is a fast dollar business. The reason is you don’t develop email lists, customer lists or a customer relationship management (CRM) system. You are leaving thousands of dollars on the table.
Let’s say you are caught up in the fast dollar world. What you should do is first balance out. Let’s say your monthly obligations are $2500 a month. Balance it out by making $5K. You’ve got $2500 to pay your bills, then you’ve got another $2500 to bank and stack.
That should be your fist priority because here’s the thing. If you’re desperate for money and you go out and try to sell people stuff, they will smell it like dogs smell fear. It’s just not a good situation. So, balance out and get yourself leveled out where you can breathe and can sit down and contemplate business plans and ideas.
While you are in the fast dollar world, you shouldn’t have a car payment. You don’t need a car note if you’re in hustle mode. Cars are more expensive than you realize when you add up everything.
If you stay in the fast dollar business models, you may never get out of it. I’m going to give you an example. Most of my friends who are still in the storage auction business and their health is declining, they don’t have people hired. They don’t have managers. So, they buy what they can. Their income has gone down because their health has gone down. That is rough.
For you guys in that fast hustle mode, you are going to have to put together some discipline. Go to five business checking accounts you need. That video is on this channel. Check that out. Once you start making money, you’re going to have to learn how to save.
If you want to change your life circumstances, you’re going to have to grow the fuck up. You’re going to have to save your money and partition your money. You may not be able to party. You should eat most of your meals at home. That’s what will allow you to move up.
That causes two things to happen. You’re stacking up money and you’re stacking up discipline, which will help you out tremendously in the business world. For you folks who want to move to the slow dollar thing, you have to pick a business model where you can get repeat customers.
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