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Podcasts about business and stuff.
G'day, it's Austin. Over the past four years, I've made over $25,000,000 with online business and millions and millions in profit. And in this video, I'm gonna walk you through exactly how to make your first hundred thousand dollars as fast as possible. Let's jump straight in.
Austin:First thing we need to do is choose a path, and so there are many different online business models that you really could use. Throughout my time building online businesses, I've tried being a freelancer, running an agency, doing traditional drop shipping, a bit of affiliate marketing, selling info products. So the purpose of this first step is to first of all realize that all these different online business models can get you to that hundred k. I'm sure there's other business models as well, high ticket closing, crypto if you want to call that a business model, other things as well that can get you to a hundred thousand as fast as possible. So we just need to pick one.
Austin:We need to pick a path and we need to stick with it. Now the reason why this is important to clarify before we continue is that we need direction. If we don't have direction, you're just going to be walking around aimlessly trying to figure out how to make this money with no clear path to follow. So we need to choose a path and choose an online business model. And for me, the one that made me the most money in my online business journey has been building branded drop shipping stores.
Austin:I call them customer first ecommerce brands. That was the path that I eventually chose after trying a few different ones over those years, but that's the one I stuck with and that's the one that's allowed me to make over 13 a half million dollars and millions of that being profit. So number one, we have to choose a path. The next thing is you just have to do the math. You have to break down what is required in order to hit a hundred k with this particular business model.
Austin:Now why this is important is because it gives you clarity. A mistake I made early on in my journey building online businesses is that I wouldn't break down the big number goals that I had into what I'd actually have to do daily, weekly, monthly, how many products I'd have to sell if I was doing ecommerce, how many clients I had to sign when I was running the agency or even a step further than that, how many cold emails I'd have to send in order to book the number of appointments that I would need to close x number of clients to reach the monthly revenue goal. That level of breaking down the numbers, you do it once at the start and it's well worth the time. The juice is worth the squeeze to figure out the specific math, the numbers that are required. Going through high school I was like, am I ever gonna use math again?
Austin:Am I gonna use all this stuff? Turns out it's extremely important and knowing how to break down these numbers is gonna make your life so much easier when it comes time to actually hit that hundred k goal. So just for this example, let's actually break down some math and say let's say we wanted to hit 10 a month in profit for this example. Now I know if we're gonna hit a hundred k in a year, then it would be 8 k or 8.3 k a month in profit. Let's just bump that up a little bit, get to the classic online business number of 10 k profit a month.
Austin:Well, with building a customer first ecommerce brand or a branded drop shipping store, can expect about a 30% net margin. Well then based on that, we'd need to hit about 30,000 in revenue. Now I'm rounding these numbers just to make them whole numbers. It's not exactly that. And let's say we wanted to hit 30,000 revenue and we had an average order value of about $70, which is pretty standard when you're building a really good drop shipping store and you're selecting your products correctly, well then you'd need 428 orders per month, and if you divide that by 30 you get to 15 orders per day.
Austin:And so straight away we've broken down this ambitious goal of 10 k profit a month with this business model into the exact number of orders that we need to get per day in order to achieve that. And we keep going. We don't stop here. Well then we say, look, if we're getting a 30% net margin, let's continue with these numbers. Let's say it's actually a 30% cost of goods because we're using a three times markup and then a 30% marketing spend in order to get those sales.
Austin:Now I know if you add those up, that's 90%, but I'm just using round numbers here instead of getting in the details 33.333%. Let's just use these and say the other 10% is a buffer, subscription costs, Shopify payment, other tools that you actually need. And so based on that logic, if 30% of our revenue would go towards marketing because if 30% is profit, 30% goes to the price of the items, the cost of goods, and then if we add in that 10% we talked about before for subscriptions and other tools that you'll need, that leaves us with 30%. And so that 30% is to go towards marketing. And so we can see here, if 30% of that was marketing, that means we'd have to spend about $10,000 over the space of the month in order to achieve the 10 k profit target.
Austin:But take it one step further, what return on ad spend would we need? We'd need a three ROAS. For every dollar we put in, if we get $3 out, then we hit our targets. And so here, we aim for the three ROAS. And what is our target cost per purchase then?
Austin:Well, based on an average order value of $70, our target cost per purchase is 23. And so if we're able to generate a sale for our product through Facebook advertising, for example, for $23, that would give us a three ROAS and that means we could hit 10 k profit per month. Now our breakeven cost per purchase is 46, so anything more than $46 that we pay to Facebook to get a sale would be unprofitable and the breakeven ROAS would be 1.5. So if we go below that ROAS, we know to turn off those particular ads because they're not profitable for us. So you can see how important it is to break everything down so you can understand the numbers behind your goals.
Austin:And now we can see this here, it's very clear. We need to be able to spend 10 k per month on ads, $333 a day on ads. We need to scale up to that point with a three ROAS. If we can do that, everything else checks out. Now as a beginner or a newbie, you're probably not just going to sink 10 k into ads or have it sitting on the side straight away, and so we wanna scale up to this point, and before that use some more organic means to get sales, which is something I'll touch on a bit later in this video.
Austin:So the second core thing we need to do is do the math. Now what does that give us? That gives us clarity. That allows us to understand exactly what we need to do to hit our target. Most people, they skip this step and then they wonder why they don't hit the goals.
Austin:It's because I don't think they really understood what is required in order to hit that goal before they set the target. Number three, we need to take a slice of a big pie. A lot of people when building ecommerce stores think they need to revolutionize a whole new product or build something brand new and change everything. What you need to do if getting to a hundred k in profit is your goal or even 10 k a month in profit is your target, all you need to do is take a slice of a big pie. You need to look at products that are already selling well that other people have spent their money to validate so that you can just grab it, sell it better than them or market it a little bit better than them and take your slice of the pie.
Austin:You don't need to reinvent things. Now what this gives you is leverage because you're able to take advantage of all of the ad spend that your competitors and other people selling the product have used for you to then figure out what products work. So you don't have to do that yourself. You don't have to spend the time or the money to validate these products. You can see what's already working and then just take a slice of the big pie.
Austin:Number four, you need to follow one professor. So now that you've picked a business model and you've gone through these other steps, you need to pick one person to learn that business model from. Now it doesn't mean you necessarily have to pay them. You could watch free YouTube videos like you're doing now and my hope is with my channel that I can guide you through how to do absolutely everything for free so you don't actually have to pay a professor. You can just follow what I'm teaching and I can teach you it all for free.
Austin:But you need to pick one person to learn from. If it's not me, someone else. Regardless of the business model itself, you need to follow one professor. And I've seen the most success in my life and hit my goals more quickly when I was listening to one person for a particular business model. So once you've selected that business model, just follow one person and that person should be in the spot where you want to be.
Austin:Are they living the lifestyle that you want to live? Have they achieved the goals that you want to achieve? You want to follow the person that is in the position that you want to be in as well. And so follow that one professor and what does that give you? That gives you guidance.
Austin:Someone who has walked the walk, they've followed the path, and so they know how to guide you through the steps to get there. That's number four. Number five, you need to ask yourself the unreasonable question. This is the one question that took me from a struggling entrepreneur at the start to one that's bringing at the moment about a million a month in revenue and hundreds of thousands in profit. And it's ask yourself this one question that will instantly put you ahead of everyone else out there.
Austin:And that question is, what would I have to do in order for it to be unreasonable that I don't hit my targets? I'll say it again. What would I have to do for it to be unreasonable that I don't hit my targets? For it to be unreasonable that I don't make a hundred thousand profit by the end of the year, or be unreasonable that I don't make 10,000 a month in profit in two months time, three months time, whatever it is. You need to add the unreasonable part in there because once you have a goal, you obviously need to break down how you're gonna get there.
Austin:And so by adding unreasonable into the question, you're forced to increase the level of output that you think is required to achieve the goal. And when you do that, even if it doesn't require all of that additional effort, that's the point of the exercise. You're making it unreasonable to think that you wouldn't achieve your goal because you're putting in all this effort, you're doing all these things that are required, you're going above and beyond and so the chance of you achieving the goal is a lot more inevitable and so that's the big question you need to ask. And why is this important and what does this give you? It gives you confidence in the fact that you have the blueprint to follow from the professor that you're following and also the fact that you now have a game plan on exactly what you need to do.
Austin:A game plan that if realistically you did everything on here, it would be unreasonable for you to not achieve the goal you set out to. And the final step is to do the 10 by 30 exercise. Now the whole purpose of this video is not to make a hundred thousand profit at a mediocre pace or slowly or slow and steady. It's to do it as fast as possible and so that will require a level of commitment and time investment obviously to achieve that very quickly. And so this exercise is saying for the next thirty days, I'm going to work ten hours a day, no weekends, no days off.
Austin:You're gonna commit that to yourself. And so that time would be filled with if you chose to build an ecommerce store, learning, product research, building a store, creating ads, launching ads, reaching out to influencers to get them to create content for you, all these things that are involved in building a business like that. And if you did wanna learn how to build a customer first ecommerce brand, the method that I've used to build a branded Shopify drop shipping store and same method that has allowed me to get this trophy here for over a hundred thousand orders, then I've made a full six and a half hour YouTube video that walks you through absolutely everything and so you can watch that on my channel and that could be where some of the ten hours goes towards, following along with that video, using my templates that I give you, providing you with everything that you need and then following through and actually taking action. And do that for a month for thirty days. And what is this gonna give you?
Austin:This is gonna give you results because all of the other stuff aside, the work still needs to be done. And so if you commit to yourself to do ten hours a day for thirty days, no breaks, no days off, then you are so much more likely to achieve your goals more quickly. That's not to say that you make 10,000 profit in the next thirty days, but it's a very strong chance that you've set the foundation for what is required to achieve that target. You've built a store, tested some products, you've launched generating some profit and all it will take is a bit more time for you to realize that goal. So that's how I do it.
Austin:That's how I'd make a hundred thousand dollars in profit as fast as humanly possible as a complete beginner to online business. And following these six steps and following this flow, I'm confident that you can achieve the targets that you set. Just to reiterate the steps along the path. Number one, you need to choose a path. You need to pick an online business model that you're going to pursue.
Austin:What that's gonna give you is direction. You need to do the math. You need to break down what is required in terms of revenue, sales, orders in order to achieve your profit target, whether that's monthly or annual, and that's gonna give you clarity. You then need to take a slice of the big pie. Don't go and do something new, go and sell a product that has already been sold before.
Austin:Go and sell a service if you want to do agency that has already sold before. Go and deliver a freelancer service in person that other people are already doing and it's working. Don't try and reinvent the wheel and what that's gonna do is give you leverage because other people have validated it for you so you can spend your time working on the thing that's gonna work straight away instead of fumbling around and testing a bunch of things that no one's validated for you. Number four, you need to follow one professor. Pick one person to learn from and follow their method from start to finish.
Austin:What that's gonna give you is the guidance that you need, especially when you're starting. You just wanna follow someone who's in the position that you wanna be in and follow what they say. Number five, you need to ask yourself the unreasonable question. You need to ask yourself, what would I need to do that would make it unreasonable that I don't hit a hundred thousand in profit by the end of the year? Unreasonable that I don't hit 10,000 in profit in the next ninety days?
Austin:Create that list, and what that's gonna give you after answering that question is confidence because you know that if you overstretch and if you aim for more output than what is generally required to hit that goal, you're gonna have confidence in the fact that you can achieve it. And number six, do the 10 by 30 exercise. Commit to working for ten hours a day on this business model and on this framework for the next thirty days and what that's gonna give you is results because all of this aside, the work still needs to be done. So I hope you've enjoyed this video, and you can follow this framework to make a hundred thousand in profit as quickly as possible. Thanks again for watching, and I'll see you in the next one.