- What's going on everyone, this is
Steve Larsen and this is Sales Funnel Radio.
Today we are going to talk about what to do
when your revenue outgrows your business.
(intense intro music playing)
I've spent the last four years learning
from the most brilliant marketers today.
And now I've left my nine-to-five to take
the plunge and build my million dollar business.
The real question is how will I do it
without VC funding or debt, completely from scratch.
This podcast is here to give you the answer.
Join me and follow along as I learn, apply and share
marketing strategies to grow my online business,
using only today's best internet sales funnels.
My name is Steve Larsen and welcome to Sales Funnel Radio.
(intense intro music continues)
What's up guys, hey, I am very excited for this episode.
So, when I officially left my job,
just like the intro to this podcast says,
January first, it's been five months.
Five solid months now, five and a half-ish
by the time this episode goes out,
(laughing) and five and half...
Sorry, five and half months and it's
been fascinating to watch what's happened.
So follow me here, this is what happened.
Okay, so I left, right, and I had this awesome idea,
I vetted it, I knew it'd be successful
and what I did is I went and I started
launching, launching, launching, launching,
launching and what started happening
was over on this side was the sales.
Sales, sales, sales, sales,
revenue, revenue, revenue, revenue.
Lots of money started coming in.
I was like "Whoa! This is crazy,
"I've never had this much cash coming.
"Whoa, my gosh, whoa!"
And all this cash started dumping on in.
And we did about 100 grand the first
month and then it's just continued.
It's down like 50, so we do, like, 50 grand a month
and that's where it's been at and I slowed it down
because here's what started happening, I started going...
You guys might be like, "Hey, that's kinda
"funny, why would he slow it down?"
I actually slowed it down.
We're keeping it at 50 grand a month right now,
right, because here's what happened,
January, February, March was like sell, sell, sell, sell,
sell, sell, and I'm selling, and we're making cash,
and it's coming in, and we're at a 100 grand.
You know, 100 grand, right...
Boom, boom, boom, boom, boom, we're making...
A lot of cash coming in and then what we did is...
What I started realizing was the actual,
my actual business wasn't able to handle what was going on.
(laughs)
Right, I was like, "Crap, I've never ever
"thought that this would ever happen to me."
And I say that because when I started
building all these funnels for these companies
while I was in college and it always happened this way,
right, and I've said this before
but it always happens this way where,
you know, the funnels that we build,
they sell things very, very, very well.
They do, they sell things very well.
It is like...
I don't know, it's like...
I don't think people will understand
how well the funnels work,
and what that does, though, is it actually creates
a business problem on a funnel problem.
Here's what I mean, I was going
and I was building all these funnels
for people in college and there's this guy
I was building a funnel for and when I put
the funnel up, I did this research,
and I ran ASK campaigns, and I figured out
exactly what his customers needed,
and I went and I put those things together,
and I put the funnel together, and we launched it, and boom!
He made a lot of cash real fast
and through those funnels it was like,
he did like 50 grand really quick.
50 grand in the first month, it something like that.
I can't remember, it was a long time ago now.
But there was a lot of cash coming in
and then it kept going, and going, and going.
It was always funny because day number one was like...
Day number one after launching the funnel,
the business owner always comes and they're like,
"Oh my gosh, look at all this cash coming in!
"That's amazing, these funnels are so cool!"
Then day number two, they always reach back out
and they're like, "Wow, this is really awesome.
"Holy crap, that's still a lot of sales."
Then day number three, they're always like,
"Turn it off! Turn it off!
"You're gonna bankrupt us, turn it off!"
And I remember I was kind of laughing when
they said that, I thought they were joking.
I was like, "Why would I ever turn off this... "
Why would I turn off this funnel? Who wants less sales?
I've never heard anyone say that in my life ever
and at the time, I was making fun of it.
(laughs) I was like...
I just didn't know any better.
I was like, "Aw, that's stupid, why
would you ever want less sales?"
And he had run into a situation where the revenue
was outpacing his business, right?
Funnels are not businesses, they're not.
Right, a funnel is a revenue arm.
A funnel is a very effective way to sell stuff, right?
A business, though, that's completely different.
A business is a series of systems, that's really all it is.
It's a series of systems that
fulfills on the funnel, that's really it.
Okay, that's the way I define it anyway, okay?
And if you don't have enough systems in place,
it means that every person who purchases
from you is being fulfilled on differently.
It means that every person who's coming in,
right, and has a support question,
you're treating it differently every single time.
It means for every single, you know,
package that needs to get shipped out
there's not a process in place.
It's literally different every time,
and what's hard about that is that
it makes it very challenging to scale,
and especially if you were just starting out
and you are kind of a solo guy for a while.
You're a solo, individual person for a while
and you're kind of running on your own, that's great.
That's a great place to be, but eventually
you're gonna get to a place where your revenue
starts to outpace your ability to fulfill well,
and that's what happened to me.
(laughing) Okay, right, funny enough,
right, I graduated college, started working
at ClickFunnels, and we did the exact
same thing to, like, so many other people.
Day one we launch an amazing funnel.
They're like, "Oh, my gosh, look at all the sales!"
Day number two they're like, "Wow, that is
"still a lot of sales, oh my gosh."
Day number three they're like, "Turn it off,
"turn it off, (coughing), turn it off, there's no way...
"Oh, my gosh, that's not gonna... "
You know, "We're gonna die, you're literally
"gonna bankrupt us, we're not gonna be able
"to fulfill on all this stuff," and I remember
the second time it happened it was
for a funnel we had built for...
I don't know if I should say the name, but anyway,
Russell and I built this sweet e-comm funnel.
It was amazing, they had tons of revenue coming in,
and they spent the next two or three months
simply upgrading and building and solidifying
and putting in place systems, things inside
of their company so that it actually could
handle the revenue, isn't that funny?
I don't know, for some reason I had never,
ever considered that for such a long time,
and so what I started doing was...
Right, and I ran into the same thing.
That kept happening at ClickFunnels
when we would build, you know...
Part of my first role when I got there was to fulfill...
I built a lot of funnels for Russell's personal clients.
I built a lot of funnels for ClickFunnels itself,
but especially when I first got there there was,
like, his personal clients that he was doing it.
I was building them, putting them
together, and so it's funny.
It's like one after the other after the other, and a lot
of these guys, what we noticed is that traditionally...
Like, I have a marketing degree, right?
In business what I, in business marketing degree
that I got, in actually college itself,
they do a lot on teaching the business.
The actual systems and the structure.
They do hardly anything on teaching sales, right?
Which is so funny, which just makes sense
why everyone goes and gets VC funding,
because they build the team and there's
no cash to freaking support it.
You're like, "That seems backwards."
Anyway, so right, so I went through and I started,
I started going through this very same thing.
I started recognizing it coming up, right, and I started...
I launched all my stuff and I was like...
It was like, "Money, money, money, money,"
and I was like, "Holy crap," right,
and I was still at that time really
the sole operator of my business.
I was like, "Huh, this is interesting."
I know what happens next, pretty soon
it becomes so high, the tower gets so tall
that eventually there's not enough foundation
and it starts to crumble and you start getting refunds
and people start saying bad things about you.
And I was like, "Crap, I don't want to hit that,"
and so funny enough I actually purposefully
had my amazing ads person, which I know
I will interview her one day and put her
on here because she's incredible,
but I had my amazing ads individual go
and we kept the ads tiny because I did not
have the power to fulfill at the rate I wanted to,
at the rate I was able to sell at.
And funny enough, usually most
businesses are the exact opposite.
They're like, they got the sweet structure
and they don't know how to get new cash.
Well, I'm a funnel builder, baby.
Like, the cash part's not the hard part...
(laughing) Right, it's this other way.
So, what I've been doing and I don't know,
I guess I've been feeling the need to...
You know, it's June now, to account,
let you guys know what's been happening,
and so for the first, like, three months
there's been, like, a lot of cash that came in.
I was like, "Oh, my gosh, that's nuts.
"Crap, I'm like the only guy," you know?
And I was like pulling my hair out, just stressed
24/7, and I remember I was talking to...
This wasn't an Inner Circle meeting,
but I was talking to a lot of the members.
We were hanging out at someone's house
and we were all just kind of hanging out
and they were asking what's going on and I was
telling them what's going on, and someone said...
Someone was talking about, you know,
you're probably gonna have to put the brake on
just a little bit to go build this stuff up
and then you'll be able to handle more cash coming in,
and I did not want that to be the answer
and I really did not want him to say that.
(laughing) And I was like, "Aw, sell,
"sell, sell, sell, sell," but...
So, what I've been doing is, so the first three months
of the year, right, was like a lot of cash.
The second three months, though,
this last three months has been...
I've been doing a lot of stuff, right.
I'm one of the coaches for Two Comma Club Coaching X,
the new 2CCX program, and it's going freaking incredible.
Right, but I've gotten my own processes
down in place there now and helping them fulfill
and helping them do amazing stuff and helping everyone,
you know, make cash and make money and put
their funnels together and stuff like that.
So, I've been doing that as well as actually
my webinar stuff that I'm doing, right?
So, I've been selling, selling, selling, selling.
It's been a lot of...
Tons of fun, backed off on the selling a little bit.
I put together a lot of systems in the past little bit
here, a lot of them, and it's been a lot of fun.
I always thought that it was kind of
like a drag, but I know now why.
Because without huge cash coming in why on earth
am I building the system, right?
That's what my mentality is like.
I'm like, "What's the ROI of me building a system
"when there's not buttloads of cash that... "
You know, to match it with, and so
that's what I've been doing here.
So, anyways, that's all I would encourage you guys to do.
As you start...
If you are selling and you've got cash coming in
and you're like, "Hey, this is going really,
"really well, it's going incredible,"
and you're having a hard time blowing up,
I want to tell you one thing that Russell told me.
Actually, I was sitting next to him, I had only been working
there for a little bit and I was keeping notes.
I mean, I would sit next to the dude, right?
Would you not take notes?
Right, so I did, and I had a Trello board
called "Brunsonisms" and "Russell Lessons"
and things like that, and I would write down
things that I was hearing him say,
things that were really profound.
I was already fanatic about his content, but like,
really profound things, and this is what he said...
He was talking to one of his Inner Circle people
and he goes, "Scaling from six to seven figures... "
He goes, "Funny enough... "
I'm gonna botch the quote, but this is the lesson.
He said, "Scaling from six to seven figures
"is not a matter of more hours in the office."
Okay, "Scaling from six to seven figures is about leverage."
It's about leverage, and so if
you've got a product, right...
We've done, like, 300 grand, something like that.
We did 100 real fast and then it was like, you know, 70,
50, 50, 50, like, and it's been a lot of 50s because...
I recognized quickly, I was like, "Crap,"
like, "back it up just a bit," right,
and what I've noticed is it's a leverage problem.
Right, so what you're leveraging, though,
is systems, and you're putting systems in place
that expand you, that lets you fulfill,
that lets you, right, go grab another funnel out there,
put something out there that brings
more cash in, so things like that.
But specifically, right, it's a leverage problem.
It's not typically a cash problem.
You guys will all notice and you'll all see,
if you haven't already, which I know a lot of you guys
are already rockstars and you're selling.
You're making a boatload of cash already,
right, but for those of you guys who are,
like, just starting out, you'll see
really quickly, right, it's typically...
When you go and you start, right, you're building,
you're building, you're getting the revenue coming in.
Awesome, and you should do that.
Prove to the market that it's awesome.
You find that when you actually
have an amazing product, right...
Like, my product right now is so freaking awesome.
I keep adding some amazing...
Oh, my gosh. (gasping)
I just added this really cool thing to it.
Another time, another episode, but oh, my gosh.
And the success rate is just,
like, skyrocketing because of it.
Anyway, aw!
Anyway, right, but when you actually figure out
something really awesome, the path to
a million bucks is not actually that hard.
I was like, "Whoa, that actually is really quick, woo!"
I remember I was walking out, I think it was
my last day at ClickFunnels, and Russell
was like, "So, what's the goal, man?"
And I was like, "A million bucks,"
and he goes, "You're gonna find out real fast
"that's not that hard," and I was like, "Oh, hahaha."
It's not that hard, let me just tell you right now.
It's not that hard, oh, my gosh.
Right, for that funnel right there that
I tossed out it was really, really quick.
And so what I've been doing, though,
is now that revenue came in real fast I was like,
"Crap, I need systems to handle it,"
and I don't want to become so systemized that suddenly
the systems start outpacing the revenue.
So, I can feel it, I can feel it and I can tell that I...
I have an organization now, right?
There's like eight people on my team now.
Right, I have a full-time employee, I'm getting
full-time support, full-time assistant, I'm like...
Right, I'm setting up the structure so that now
I can go back to the thing and be like,
"Blow it up, baby, yeah, go, we're going to three," right.
"We're going to three real quick,"
right, does that make sense?
And if you watch all these other Two Comma Club winners,
they've gone through a very similar pattern personally.
While we often study the funnel, which is great,
we study their marketing, which is great.
Remember, though, to actually study their business
and the structure of it, and when you're funnel hacking
you're not just funnel hacking funnels,
you're actually also funnel hacking the way
they fulfilled on what the funnel was selling.
Okay, and so that's been part of what
I've been doing heavily this last little bit.
I mean, I've been studying my face off.
I got notes and papers all over
the place, all over my desk right now.
I've got...
Because I got the revenue now coming in,
and now what I'm doing is I'm building the actual systems
and the processes to support more revenue.
My current structure, my current structure could not...
I don't think it could handle much more as it is.
Right, meaning my structure as of, like, two months ago.
My structure now, though, it's getting a lot cleaner,
a lot cleaner, and I know that coming up soon
here I'm gonna be able to just, like,
scale, scale, scale, scale, scale.
What I've learned and what I've
seen from a lot of people is...
And if you look at the pattern of a lot
of Two Comma Club winners as well,
you'll notice in there that a lot of them...
Usually it's with, like, three to five
people they'll run to a million real quick.
Actually, three to five...
Three to five people, sorry, three to five people
on their team, they'll usually hit around three million.
That's obviously, my gosh, that's different
for every business, every industry,
but the actual structure, the business structure
allows them to get to that kind of place,
usually pretty quickly with not many people on the team.
It doesn't take a huge team to do so, to do these things.
So, right, like Brandon and Caylen Poolen,
they just crossed 10 million dollars.
They just had their first three million dollar month,
crazy, and they've got 40 people on their team.
40, okay, it doesn't take these gigantic teams, though,
to make a significant amount of cash for your pocket.
What the roles are... So, real quick I'll tell you the roles
and then my camera's gonna die.
(laughing) Okay, so what I'm going for is, right,
I am the main marketer, funnel builder, CEO, right.
That's the position that I'm in.
I also have an affiliate manager.
Right, that's my first full-time employee.
Not support, right, not assistant.
I want other cash generating people, right.
That's all I want, right, where there's still structure.
He's going out and he's my affiliate manager.
He's going out and he's creating relationships.
We're doing another huge Dream 100 package drop.
That's actually where he is right now.
That's why he's not sitting there right now.
He's at the post office, we're doing
another big Dream 100 drop, and we got
a lot of people excited to promote.
Right, and he is bringing in new blood.
New blood as far as relationships goes.
Okay, so it's me as the funnel builder
and marketer and attractive character.
Right, that's the roles I'm trying to take on.
The next one, though, right, affiliate manager,
and that actually was told to me by Russell.
He said, "The next employee I would get,
"100 percent man, go grab an affiliate manager
"and then grab, like, an assistant
"and then a support person."
Okay, really that's it, I mean, if you're,
like, shipping stuff out maybe a fulfillment person.
I'll probably maybe grab two support people
so that they're almost around the clock.
You know, almost, you know, but that's...
I mean, that's it, that's all I really need,
right, as far as full-time people.
Now, I have content people, I've got like six
content people, got an amazing traffic driver.
I do have a bookkeeper, but those are, like,
VA positions, they're not full-time on my books.
They're on my books every month, but they're not, like...
They're not W-2 employees, these are 1099s that I...
As far as, like, full-time W-2 employees
that are actually like here with me, right...
Got the affiliate manager, definitely
gonna have a full-time assistant,
definitely gonna have full-time support.
Because right now we're doing the support piece.
He mostly is doing support and
affiliate stuff, and that's kind of it.
Those are the roles, it's really four roles
that I'm going for for the business model
that I love and am modeling, and it's going great
and everything's running how it should.
So, anyways guys, hopefully that was helpful to you.
I just wanted to do a little bit of accounting
so that you see, like, where you are,
and if you're feeling stuck, start comparing
back and forth between, "Okay, is my funnel
"revenue outpacing my business,"
because they're not the same, right?
Or if you're like, "Hey, I've got this
"sweet business and these cool systems
"and structures and processes,
"but not enough revenue," go build a funnel, right.
And kind of this balance between one and the other.
They're gonna have a hard time outpacing each other.
Right, after a while the structure will get
too weighty, you're not gonna have the cash to hold
the system so the system will get, you know, leaner.
So, I kind of build it like this,
right, revenue and kind of up to
where that revenue is, then revenue...
I don't like to build the business past the revenue.
That's called debt and I personally
am not a huge fan, so I own my stuff.
I don't want anyone else to own it.
All right, hopefully this was helpful and hopefully...
Just so you guys know what's going on
with my team and how I'm actually building it out
and actually putting it together.
My content team, they're freaking rockstars.
I'm definitely gonna interview them
so you guys all know who they are.
And then over here on the other side,
though, right, the W-2 side where I'm actually
building out a full-time team with...
It doesn't really take them...
Like backwards plan, right, figure it out.
Well, how much money is that person
probably gonna want a month?
How much is that person gonna want?
Okay, sweet, right, my hard costs
right now are like 25 grand a month.
Right, my salary, the other guys, the other people, the VAs.
Hard costs right now for the content team,
for everything else, 25 grand
a month, that's not bad at all.
All right, sweet, done-zo. (laughing)
Let's do that, so I've backed way off,
built up the structures, got the systems in place.
We're just vetting them right now.
That's really all we're doing, and as of
yesterday I talked to my amazing ads person.
We're gonna go scale these ads
like crazy and get them off the ground.
So, anyways, I just thought it would be
kind of cool to show a little of the accounting
so that you guys know what I've been doing,
because my structure could not handle much more.
(laughing) So, anyway, awesome stuff.
The next road mark I fully expect we'll probably do the...
This is me calling my shot, okay.
Probably I think we're gonna hit the million
by October and then, at the latest,
and I think we'll go to like, maybe 1.4, 1.5
by the end of the year as we're pacing, okay.
And that's me looking at where we are combined
with the campaigns that we're putting in place,
where I've seen them go before, where I've put them before.
So, anyways, some of that...
Anyway, we'll see what happens, but that's where
I am and it's kind of a different episode,
but be cognizant of that.
I never realized that I would be
in the role that I am as far as
a systems builder, you know what I mean?
I'm a funnel builder, now by necessity I'm also
a systems builder, which has been great.
So, anyways, hopefully it's been helpful.
I'll talk to you guys later, please rate this podcast
and review it, that helps me like crazy.
I think that my podcast is one of the foremost podcasts
on funnels, which is why I'm trying to push it hard
and prove to iTunes that it matters.
So, please, please leave a review and share.
That means the world to me,
and I'll talk to you all in the next episode, bye.
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