Most of us started a business to get some sort of freedom… whether it’s time, or location, or financial freedom. And the cool thing about a successful launch is that it can help you make a lot of money. But if you’re not thinking ahead to how that money gets spent, your business might be in serious danger. Here’s what I mean…Video Transcript and Relevant Links
So let's talk about money, because since we're in business, we're in business to make a profit.
One of my rules of online business success and the way I put it is, “Don't buy that Ferrari.” And where that comes from is when I first really came up with this Product Launch Formula… first started teaching it. Well, it can lead to some pretty outside success, some pretty rapid success, especially for the people back then who maybe had an email list but hadn't put together a good promotion. And then I taught Product Launch Formula and all of a sudden, people were making a lot of money.
And I actually know someone, and this is a long time ago this happened, 2005, 2006. I'm going to get the numbers off, but he made somewhere around $200,000 in a launch, top line, those were his sales. That was absolutely this incredible windfall, it was amazing, he was so excited. So this person I know went out and bought a Ferrari for just under $200,000. So he spent almost every penny of this great big windfall, and never mind that there's going to be some taxes, nevermind that he's going to have some expenses in his life, nevermind that you might have some refunds.
He basically spent the entire huge sum from his launch and bought a fancy car, which of course lost 50% of its value the moment he drove it off the lot and it was just absolutely… it was just insane. I couldn't believe that someone would go and do that and it just felt incredibly irresponsible. And of course, he can go do whatever he wants and whatever his thinking was, “Okay, I did that. I'm going to be able to do it again and again and again. I'm just going to make millions.” And maybe he did, I don't know how that story ends.
But the thing is I see so many people making financial mistakes in their business. A lot of people they say… “I just want to be creative, I just want to be an artist, I just want to help people or I just want to be a marketer or I don't want to worry about the money.” But the reality is you have to worry about the money. I've seen this over and over. People do a great big launch, the launch is over, they've made a lot of sales, but there's no money leftover. I mean, you have to avoid expanding your lifestyle, that's what going and buying a Ferrari, just boom like that, because that's expanding your lifestyle in a big way.
And the reality is a promotion doesn't make a business. Just because you put together a great promotion, doesn't mean you have a business.
And this might sound strange coming from me because I'm all about launches and having great promotions and teaching people how to do this, and I'm a big fan of launches, but I'm not a big fan of building your life so all of a sudden you're dependent on that next launch.
And especially once you really start building a business, if you've built a team, if you built some infrastructure, being dependent on your next launch is a recipe for disaster, because launches are great, they're amazing, I love them. I love how I've been able to help people with them, but it's not … you can't be dependent. It can't be where your next mortgage payment is coming from. Hopefully, it's now where your next payroll payment is coming from. You need to build a real business, not just a promotion.
So I actually thought I'd talk about money, it is a big issue. I thought I'd talk about it for the next couple of weeks. So if you're interested in hearing more about money, scroll down, leave a comment for me and let's go get ‘em this week.