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Spending $1,200 To Build A 6-Figure Business

Published on: December 4 2022 by Hayden Bowles

Spending $1,200 To Build A 6-Figure Business

Spending $1,200 To Build A 6-Figure Business

you know those crazy stories you hear
about where it's a very small amount of
money in like dogecoin and someone just
makes
a crazy amount of money now as rare as
that is to turn you know five dollars
into two million
it actually happens on a slightly
smaller scale pretty much every day
inside of the business space especially
with online businesses
tik businesses anything that revolves
around not needing to open a physical
location because
things can happen very quick and by
taking advantage of fully legal fully
ethical and really not that hard to
master
advertising strategies you can take
something from nothing to something
very very quickly and now this is
actually something i've been doing for
years doing tens of millions of dollars
of sales
inside of the e-commerce space even back
when i wasn't an expert i was really
truly
just starting to learn these skills and
start making twenty thousand dollars
forty thousand seventy thousand dollars
a month
with e-commerce stores now obviously not
all that was profit but a healthy chunk
was
and that's what allowed me to start
investing into other things and reinvest
back into the business so
that six figure business has now gone
from about zero to six
to seven to eight and it's really
started growing and i've learned a lot
along the way
now i have a full-fledged advertising
agency with 14 different media buyers
internally two externally two website
developers
client managers and a pretty good system
built around with managers inside of
there
to pretty much automate the entire
structure so now we do this for other
people
the reason i bring up the number 1200 is
because i'm about to show you
four examples out of many we've shown
many on this channel
i love doing case study breakdowns you
guys probably if you watch any videos on
the channel
i'm always in an ad account showing you
something right i want to show you four
examples
all four of these people started inside
of our advertising agency
on the base package we charge roughly
1200 bucks depending on what we're doing
that right there covers about 90 of our
agency's cost so that goes directly to
our team members
for running ads and setting things up
building stores anything that's needed
for a client whether they want to scale
or start from scratch well the way that
we make money as an agency
is pretty different from how most people
do it this is just me explaining how my
company works
we take a percentage usually about 30 so
a percentage not a majority but
something healthy
of the profits a lot of people when i
say a lot i mean probably 75
to 80 of clients that come to us have
done zero dollars or next to zero
dollars
meaning the entire system needs to be
reworked so this is something i haven't
done once
i haven't built one of these two of
these three of these i've done it myself
dozens of times i've multiple brands
that produce millions of dollars a year
and we've done this 100 plus times
inside of our advertising agency
and on a monthly ongoing basis we run
this for dozens of clients
so let me break that down for you right
here i'm going to break this down
but i want to tok about these
approaches first because there's two
ways you can approach a business like
this
the way that i did which is completely
different i wore every hat which means
i did every single task i built the
website i found the products i tried to
learn the advertising
when i failed it was me failing by
myself there was nobody to tok to it
was like very isolating in a room just
me by myself
trying to learn every single skill well
this will result i'll tell you from
experience this will result
in building probably the craziest work
habits that you've ever seen and i'll
tell you this from experience as well
they are very very hard to break now
it's great to get things going and you
can make good money you see all my typos
inside here
but it usually hurts your scalability of
the business
and this is what i i mean by this you're
going to get trapped by wanting to do
everything yourself because
you can you have the time at the end of
the day working 10 hours 12 hours 14
hours
was pretty common for me 365 days a year
i didn't know what a day off looked like
and to be honest the first couple times
that i tried to take a day off it's
really uncomfortable
now this worked i want to make that very
clear this worked phenomenally
and the thing i really appreciate out of
this i didn't like the fact that it
really hurt me from scaling
to kind of the next level took a while
to break through that but what i do like
is i knew every single thing of the
business so because i was the one doing
it so when it was time to hire someone
else
and outsource certain things some things
outsourced companies other things we
hire internally and train for it
well that was very easy to do because i
could quickly oversee
what someone was doing i could help
teach them and if they were screwing it
up
i'd catch it like that now if i was not
very good at it and if from the get go i
tried to just hire someone internally it
wouldn't work because how would you
train them you have no experience
so that's where it gets difficult people
say well how do i hire how do i build an
automated system
you're arguably taking a bigger risk
because option two and i don't think
there's any other options here let me
know if i'm wrong
option two is automation focus and you
delegate from the get go
now this has better scalability because
you have less time involvement more room
to think about big picture stuff and
just keep hiring more people
but it's harder to actually identify
those core team members or assets like a
company that's going gonna do stuff for
you
to get things moving dare i say it's a
higher startup risk now here's the thing
when you're hiring someone who knows
what they do and i love to hire people
who have experience but it's not really
the main thing i actually look for
because we can train now inside of our
company
people who can help train them well it's
really interesting because
when you're first getting started you
don't know exactly what to look for you
don't know the questions to ask in an
interview process
but when you're giving it to someone who
already has a ton of experience they
might take it in a good direction they
might take it in a bad direction
so it's kind of a toss-up i think it's
actually probably a quicker way to get
things going
i'm still glad that i didn't do it in
the beginning because i don't think back
then there really was anything that was
solid
you could hire individuals but let me
show you a few examples of this
okay so as you can see this is the old
shopify layout they changed about three
months ago
i kind of like the new one the white's a
little bit cleaner but this pops a
little bit more
so you can see this month and this was a
little while ago but
on like the 17th 18th of the month doing
about 12 000 that was a client who'd
been working with us for about two and a
half months give or take
and you can see steady growth even
throughout the month i mean it didn't
start as much
you know the first 30 days or so was
very small testing they didn't have a
huge advertising budget
they wanted to make sure things were
being very profitable from the get-go so
they have to come out of pocket for a
ton of money
which makes it i don't want to see more
difficult even though it does
but it makes it slower so this this
specific client here i do remember this
one they did not have a winning product
it took us like three products
to find that winner which is pretty
quick you know when someone's coming to
us they have
nothing there's no business there's no
experience there's no anything
i mean for us to do all of that from
scratch i mean it takes a lot of
freaking work and people don't really
recognize that so
here's another example moving forward on
a different storm by the way you can see
kind of the aov here
um pretty healthy about a hundred bucks
for every single order which is super
nice you can just
kind of take a look at that i always
like to notike little things like that
when i'm looking at examples
and sorry if you can hear all the ruckus
going on outside there's like four fire
trucks and a bunch of cops rolling by
but anyways
this next example here pretty similar
except it's not on the month
it's on the week so this store is doing
almost 55 to 60
thousand dollars a month so far which
again you can see almost a similar aov
so you kind of notike we really like
when we're testing new products and when
we get to select them as an agency
usually it's slightly higher tiket you
can kind of again see that congruency
here with the next one as well
3 000 orders for half a million dollars
in sales over just a few months
you know breaking that down it gives us
more wiggle room in terms of advertising
and that's the skill that we've really
built that's what doing all this
internally and learning it myself
that's the biggest skill that i had
built was specifically advertising and
not just
everything but facebook ads you gotta
learn one skill and that's really where
we dominate and really outperform for
clients and that's that's
great that's what we do inside of our
agency so yeah you know someone doing
fifty five thousand dollars was no
experience a month now they have a six
to seven hundred thousand dollar a year
business that's making them
at least 150 000 in profit that's 3x the
average annual income and i can
guarantee they're not working more than
30 minutes a week or maybe an
hour if they don't have things properly
set up but the only thing our clients
really do inside of our agency just as
an example
the only thing they do is have to
fulfill the orders but sometimes we're
setting them up with suppliers
and sometimes those suppliers depend on
what they're doing and the volume can
just fulfill it for them
or we show them how to hire a va for
that then the only other thing they have
to do is support
so some people decide to do it
themselves in the beginning which is
fine
but once you get a little bit
overwhelmed you're going to want to
bring on board a team member so once you
have kind of
those two things then all the
advertising automated there's nothing to
do except like
let me optimize the store and go like
make some new ads and just like
creative stuff that you can now put your
time on and have a little bit more focus
on
which usually yields better results so
as you see kind of a continuation here
with this nice scaling graph
on a different client as well this is
slightly older this is i mean not that
long ago
but you know the nice growth i really
wanted to show this chart because it
really shows all these small
tiks here at the beginning testing
testing it takes time to find a winning
product
you're toking about a month month and a
half people expect things to be
overnight especially when they have no
experience because they don't know how
long it actually takes
so i'm the person who will tell you
ecommerce is not fun when you're getting
started
it's the biggest pain in the ass and
it's something that's going to take a
lot of time and it's going to take a lot
of money with ads especially if you're
doing it yourself
that's why we have our advertising
program to show you how to run the ads
that's why we also have the business
oriented program the performance drop
screen
to show you how to structure the
business legal the entities behind it
setting up the store how to like you
know moderate and manage all your team
members how to deal with sourcing
like everything like that and giving you
all the resources so it takes time this
is a nice graph okay
you see a nice little scale you can see
some you know just slight optimization
throughout here nothing too crazy the
product didn't go bananas
but i mean at one point hitting you know
12 13 000 a day is a pretty consistent
five six seven thousand dollar a day
average for a while um so
yeah pretty solid and as you kind of
move forward here throughout just
a 10-day period 17 000 you know you do
the math on these
and it's just this is nothing
spectacular i'm not here trying to show
you the largest examples we post stuff
all the time on the e-com season
instagram
but breaking that down i believe gives
you kind of a first-person perspective
into what's working and breaking it down
that's why i wanted to mention little
things like hey
just take notike of the average order
value that's something you should always
look at and as
someone who's in that industry i always
look at that you don't want to see oh
they're selling this for 22 bucks that's
that's interesting okay it can work
it's just gonna be a little more
difficult for the marketing so it gives
our media buyers a little bit more
wiggle room and then down the road when
we're scaling
if it's an 85 aov versus a 25 it really
opens up the door for google that's kind
of the biggest preferred advertiser
for a higher tiket for us if we're
moving to a secondary source
so it just opens up the door for a lot
more stuff and it's a lot of fun testing
so
the purpose of this video is to tell you
if you want to take one of those two
routes
just understand how long it's going to
take because i see a lot of people who
do it for a month
and then they just kind of give up like
if you're gonna take the self-instructed
self-taught route where
you buy three four five six courses you
spend eight months studying which is
kind of what i did and a lot of money on
ads that's going to be lost you're going
to learn that skill
it's simply a matter of when if you
approach it with the right mindset
and just put in enough work it'll happen
just like anything else if you want to
learn how to do
10 pull-ups and you can't do it
eventually it will happen it's literally
guaranteed
as long as you do what's necessary it's
the same thing but it will take a while
i see a lot of people get discouraged
route two if you want something to be
done for you hiring internally there's
no way i could have done that in the
beginning
because i had no skill you can't teach
someone if you don't even know how to do
it yourself
so you gotta hire like an entire setup
and structure for and that's what i want
to open this video up into
is inside of our advertising agency
we've structured it so that we truly is
an agency
don't make a penny in profit until you
do
and we prefer to work with people who
already have sales coming in so if you
have 500 bucks a day we have clients who
come to us doing 10
000 a day and once we start diving deep
into it this is not to make fun of
anyone
they have they're using stripe or
shopify payments which is the biggest
no-no
they're not using a proper supplier
their shipping time is 15 days before
the actual order fulfillment time
it's ridiculous they don't have any good
custom creative so initially when we
jump in
we're immediately saving them if they're
doing ten thousand dollars a day
probably saving them four to five
hundred bucks a day on their fulfillment
300 bucks a day on their uh order
processing fees through their merchant
getting them a real merchant the one of
random holds
no bs reserves so instantly 800 bucks a
day that's
what every twenty thousand dollars a
month and they're paying us
you know anywhere from a thousand to
four thousand dollars a month retainer
which just goes directly to our team
and we take a percentage of profits so
we're not an agency that just boosts
revenue because then we make no money
has to have revenue has to have profits
so we structure it like that if you want
to learn more about it the only place
you can do that is our free inquiry form
you can fill that out linked below it'll
be the top link in the description
fill that out answer a few questions
then you can get on an absolutely free
call with a client manager
they oversee all of our projects they
can give you so many good examples for
people to start from scratch
kind of what we see in terms of averages
for product testing or if you want to
scale
tok about that route and side of things
as well so hope this video gave you some
insight introduce those two approaches
ways to structure ways to think about it
because i see a lot of people quit give
up too soon
or overall just not start because they
don't know exactly what goes into it so
hopefully this video kind of breaks down
that barrier a little bit all right if
you enjoyed it make sure to smash
a quick like down below if you have any
questions at all of course leave it in
the comment section i replied all the
comments throughout the first few days
of the video
and yeah hope you enjoyed it i'll see
the next one peace
you