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Sharing Insights From Building A Solo Consulting Business, Working 15 Hours A Week, And Generating An 86% Profit Margin.

SSK #6: The Road to an 86% Profit Margin Business: My Top Strategies

Read time: 3 minutes.

People often ask me, "What was the pivotal moment in achieving your result of building an 86% profit margin business while working only 10-15 hours per week?" Like all "overnight successes," it's not one thing that changes everything. It’s the accumulation of multiple factors and actions:

  • Persistence and consistency
  • Great offers
  • Building an engaged audience

But if I had to pinpoint three main drivers of success, they would be:

  1. Creating a high-ticket product that sells. We all have ideas, but no matter how good an idea is, it doesn't matter if nobody else sees its value. In other words, if you’re the only one who loves your product, you will not succeed. You need to find a product-market fit - a product that your audience loves, that solves their problems, and that they are willing to pay for. In my case, that product was my VIP Revenue Masters Program, which helps online businesses grow and scale. Clients were able to increase their monthly revenue from $20k to $100k in just 10 months or improve profitability by 20%-30%. The program’s high-ticket price brought great cash flow and allowed me to scale and grow quickly. I was able to invest in advertising and audience growth because the program follows a group-consulting format instead of 1-1 work. I strongly recommend following what I call a “Tesla Pricing Strategy” - starting by offering a high-ticket product to fuel your growth. Then, after building a track record of great results and an audience, you offer a low-ticket solution.
  2. Building an audience. This aspect is often neglected. Many of my clients, when they first come to me, rely solely on referrals. There’s nothing wrong with referrals, but you need to be strategic about them and keep building your audience. The bigger your audience, the more money you make, and the more referrals you get. To build an audience, you don’t need to spend countless hours on 10 different platforms. I focus on two platforms - LinkedIn and Twitter - and spend about 2 hours per week creating content for them.

    Here's my simple formula:
    - Document what I do, note down thoughts and insights, document wins and losses.
    - Send one newsletter per week.
    - Use golden nuggets from the newsletter to share daily on social media.
    - Engage with my audience by responding to comments.
    - Engage with bigger accounts in my space by adding valuable comments to their posts.
  3. Building a low-ticket, mass-market product. As your audience grows, you will attract a wider audience that might not be a good fit for your high-ticket solution. You also have a bigger reach, and people who don’t know you learn about you for the first time. So it’s harder to sell an expensive product to them. At the same time, it makes sense to offer something less expensive to the larger audience you now have, as with scale it becomes financially viable. For example, you wouldn’t make much on a $150 product if your audience wasn’t big enough. That’s why it makes sense to start with an expensive product and then add a low-ticket one. Low-ticket products sell easily, are easy to deliver (because they are passive), and have a very low refund rate.

    Over time, I have built three mini-products (see more info below)

Now, my focus is on growing my audience. I don’t pay attention to vanity metrics of how many people follow me. I have a relatively small following compared to other accounts, but that following is highly targeted and... buys my stuff!

Let’s do a quick experiment. I promise to share the results with you in our next newsletter. Which of the above 3 steps (high-ticket product, audience building or low-ticket) do you think are the most important, or the ones you should focus on?

I’d like to ask you to answer this question by answering the LinkedIn poll and clicking one of the responses in THIS post. Please also comment “Done” under the post, so I can get the notification and check the results. I will share the results of the experiment soon! 

p.s are we connected on LinkedIn or Twitter?

...and whenever you're ready, here are a few ways I can help you. If you're still trying to figure things out, I'd recommend starting with an affordable course:

1. The World Domination Strategy Game: a comprehensive tool for online entrepreneurs designed to simplify the process of creating a business strategy. A distillation of the best coaching exercises derived from working with over 800 online entrepreneurs. It provides clear, step-by-step instructions across 14 modules, supplemented with 20+ videos, exercises, files, and templates. The game can be used individually or with a team. The users are given access to additional resources like 40 pages of instructions, assignments, techniques, motivation.
https://mikekoziol.com/strategy-game/

2. The Marketing Agency Scaling Roadmap:Introducing: the 9 CRUCIAL categories and 27 power activities you need to focus on at each stage of growth: $5k-$25k/mo -> $25k-$50k/mo -> $50k-$100k+/mo. 5 Modules. 4 hours of ACTIONABLE content. Milk, honey, butterflies and rainbows and so much more...
https://vip.mikekoziol.com/products/courses/view/1116366

3. LinkedIn Prospecting: In this training, I'm giving you the nuts and bolts of what it takes to make LinkedIn prospecting a success. I'm peeling back the curtain to show you exactly how I utilize it, while also sharing my personal insights and experiences from leveraging LinkedIn to secure leads and clients.
https://vip.mikekoziol.com/products/courses/view/1129325


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