How to Get to $100K/Month With Just One Product

26m 37s

Ryan Daniel Moran explains how entrepreneurs can build a million-dollar business faster and more predictably than the traditional multi-product approach outlined in his book "12 Months to 1 Million." While the old model of four products each generating 25 daily sales at $30 still works, Moran has observed that brands with fewer products often grow faster because their focus isn't scattered. He introduces the compounding sales model, which generates seven figures with just five sales a day from a single product by prioritizing customer retention and repeat purchases over acquiring new customers. For this model to work, products need a premium price point—roughly double the competitor average—and a consumable or subscription element. Moran recommends starting with audience building through organic content and personal engagement for the first one to three months, then reinvesting profits into advertising. Bundle offers provide upfront cash to fund ads, while auto-ship subscriptions create predictable recurring revenue. He shares the example of client Amy, a stay-at-home mom who grew from $15,000 to $45,000 in monthly recurring revenue within three months and is now pacing toward $2.5 million in her first year. Moran also describes how his own brand, Switch, went from $9,000 a month to seven figures using this same approach with one product before launching a second.

Transcription

4522 Words, 24087 Characters

English

Speaker 1I wrote a book that said that you need 100 sales a day across multiple products in order to have a million-dollar business. And that's true. If you have 100 sales a day at a $30 price point, that's $3,000 a day, which is just over a million dollars a year in revenue. But as it turns out, today there's a way that works a little bit faster. And for a lot of entrepreneurs, it's a better, easier way too. You get to a million dollars in less time than 12 months, and you don't even need 100 sales a day in order to hit seven figures. In fact, if you do it in a very specific way, you can build a million-dollar business in about nine to 10 months, and you don't need 100 sales a day. You only need five sales a day. So if you stick with me today, I'm going to share with you what your product needs to look like in order to accomplish that goal. We'll talk about what the math and the offer structure needs to look like. And I'll also show you how to pretty much guarantee that you're going to get at least five sales a day. All right, let me walk you through it. Now, in my book, 12 Months to 1 Million, I lay out a math formula that said, if you have four products that each do 25 sales a day at a $30 price point, that's a million-dollar business. And that still works. And for a lot of entrepreneurs, that's still the best and fastest way for them to build a million-dollar business. But there was something that I noticed that I didn't know about. And that's the fact that I didn't know about the math formula. And that's what I noticed over many years of working with entrepreneurs, helping them build seven-figure businesses. I noticed that the more products they had, the slower they tended to grow. There's this thing where once they had more than one product, their focus was bouncing between this idea and promoting this, and should I be on Amazon and TikTok? And their focus just got scattered all over the place. And at the same time, I noticed that the brands that I worked with only had one product were sometimes growing the fastest. All of their focus was on one product and growing a compounding machine that took them to seven figures. And I even had one client who got to seven figures in just about five months. So I'm going to walk you through what all of those brands have in common and how you can use the same strategies in order to build a seven-figure business. I'll show you. Let me tell you a story. About a year and a half ago, a buddy of mine and I were building a company called Switch. And the first product was a sleep supplement. And the sleep supplement got a great name. It's called Kill Switch. Tagline is sleep like you're dead. Works great. I actually use it every day. And the product was great. And the branding was awesome. But the sales were really slow. In fact, we were stuck at like $9,000 a month in sales. And we were stuck there for kind of a while. And we slowly started to realize that this product wasn't the type of product that was going to crush it on Amazon. This wasn't the type of product that would go viral on TikTok. This wasn't a product that a whole bunch of influencers were picking up. We were getting a little bit at all of those things, but nothing that was taking us to a million-dollar business. So finally, after a lot of resistance from me, my partner convinced me that we needed to do a little bit of a different model. And that's what ultimately created what we call the compounding sales model. And that's where we turn one sale into many sales. And we don't focus so much on trying to profit on every customer. In fact, instead, we're trying to get far fewer customers, but getting them to come back over and over and over again. And as a result, we can build a seven-figure business with just a handful of sales per day. And in the case of Switch, this business went from a stuck $9,000 a month on-the-struggle-bus brand to a business that's doing well over a million dollars a year. And now we just launched our second product. So we got to seven figures with just one product. Now we can turn on the rest of the machine and launch multiple seven-figure products. I'll show you how. So the old way of getting to a million dollars looked something like this. You would have a launch of a new product, and you would get sort of this big spike of sales out of the gate. And everybody would get really excited about the fact that they were getting sales because they followed the methodology of building an audience or building up buzz about a product. And they would get this big dopamine dump of sales, and it would be magical, and we're all going to be rich. But then an inevitable thing would happen where after the launch of a product, the sales would come way down and kind of get stuck for months at a time. And this would make people very sad. And I had so many client conversations with people saying, "I had this great launch, and what do I do now? And my sales are down." There's this dopamine dump that happens when your sales come down after a launch. And the work was getting the customers and building the machine to slowly get a product to 25 sales a day and beyond so that you could launch the second product. But what would happen for a lot of people is they would start to grow their sales, and then they would say, "Okay, I'm getting some momentum. So now I'm going to do another product launch, and I'm going to go through that dopamine cycle again where I get this big surge of sales, and now I'm sad again." The problem that they would run into is then they would have two products that were selling okay, but nothing that was really breaking out and taking them to a million-dollar run rate. So eventually, if they stuck with it and they built up the slow and steady machine, this brand would grow to a million dollars in sales over the course of 12, sometimes 18 months. And that process still works. It still works to get four products at 25 sales a day at about a $30 price point and have a million-dollar business. I've seen people do it hundreds of times. But in this new way, it's a little bit more predictable. And because it's more predictable, it can be a little bit easier to get there. So instead of having these big swings in sales from the old model, this new way looks more like a staircase. So you still come out of the gate with sales, but then there's this steady staircase up to the million. And it looks kind of like this. When you launch your first product, you might typically do 100, 200, sometimes 300 sales on a launch. I've seen people do a lot more. But it's pretty typical for someone to come out of the gate with 100 sales. And if you've got a $50 product, it means you're going to get about $5,000 in sales on launch. That would be a pretty typical launch for a brand-new entrepreneur who follows the process that we talk about at Capitalism.com. But here's the difference. Instead of having these big swings in sales, we would have $5,000 in sales on the launch. And instead of getting the next new batch of customers, we put our focus on keeping that small batch of customers and getting them to buy more. So instead of taking our eye away from the customers who just voted for us and just said, "Hey, I like what you're doing," and putting all our focus on getting more of those types of customers, we instead put our focus on those specific customers and get them to buy again and again and again. And if we do that, then our second month, we double our sales, and then we double our sales again, and then we double our sales again. Why? Because we're able to turn our existing customers into repeat customers, and we don't need to get a whole lot of new customers if we're focused almost exclusively on keeping the ones that we already have. Now, I'll walk you through exactly how we get those customers and how we keep them, but the important shift here is not on how we get as many new customers as possible, but how we keep the customers that we have buying again and again. And that makes the recurring revenue model of the business much more predictable. And for a lot of entrepreneurs, especially those with consumable products, this tends to be an easier, more low-stress way to build the business. Now, in order for this model to work, your product needs to meet a few different criteria. First of all, I like premium brands. I like brands that come out with a high price point. My rule of thumb is that I take the average or the median price of all of my competitors, and I times it by two. So in the case of Switch, most of our competitors are about half the price of what our product is. I like coming out with a premium price point because it allows me to run incentives and giveaways and discounts and be aggressive with advertising in order to get new customers. I don't want to have to work that hard in order to squeeze out a tiny margin. So I need to have enough margin to work with in order to be able to do what I do best. The second thing is that the product needs to be consumable in some way. Now, if you don't have a consumable product, one of the things that I would recommend is that you look at how you could add a consumable or subscription model to your existing business. For example, I'm wearing an Oura ring right now, and I think I paid maybe 300 bucks for the Oura ring. Oura doesn't make their money on selling $300 rings. Where they make their money is on the $9 a month subscription that you need to have in order for all of the bells and whistles on the app to work. I have another friend who sells an air filter, and this air filter is industrial-grade to get all the pollutants out of the air, and it's a $1,000 air filter. But in order to stay in good standing, you have to replace those air filters inside of the machine. So instead of just banking on selling more air filters, his company makes most of their money from the repeat purchases that come. So if you sell just one product that people only ever use once, it's a good idea to think about what can exist on the back end to get people to buy again and again and again. And when you think about it that way, you don't need many customers in order to build a million-dollar business. Now, if you're watching and you don't have a product yet, or if you don't have a consumable product that people are going to buy more of over time, I have something that's going to help you out. I recently developed a custom GPT. It's going to be for some clients to help them craft a recurring revenue product. And all you need to do is answer a couple of questions, and it will walk you through the criteria of how we think about building million-dollar businesses. So if you want to check that out, you can go get that for free over at capitalism.com/productgpt. So just type that in, and it'll take you right to the custom GPT. All right. Now, this is the model that we use in order to get customers to buy. It's the model that we use to get customers to buy over and over again, and to create that smooth route to a million dollars, even if we just have one product. So where most people who are selling products put their focus is all in the first purchase. And all of the marketing on Amazon or TikTok shop, or even at your own store, goes into how do I get as many first-time purchases as possible? And a lot of, especially physical product entrepreneurs, are trying to sell a product for $60, but after ads and fulfillment, they're spending $60 to get that customer and they make no profit. That sad face is a very hard way to build a business. Whereas if your focus is on what happens after the first purchase, now we can build this compounding sales machine. There's two ways that you can make that work for you. Option number one is to just sell more of the same. So we would do that in like a bundle of some kind. So if your first purchase is $60, you might put together a bundle for buying three more for $150. And you would have an offer to add more of what they just bought to their purchase and save a little bit of money. Lots of businesses do this. It's a very traditional upsell flow. The idea here is to generate as much cash upfront on that first purchase from getting the customer to buy as many of those as possible. And by the way, if you sell on Amazon, there are ways to do this. You just have to add custom bundles to the shopping experience and you can get customers to buy more than one product at a time. But the way that I like to do things is once a customer buys something one time, we try to get them to buy on our own. This is what I like to do, is to combine these two strategies. The ultimate goal is to get as many people on auto-ship as possible because you're going to have a lot of people that are going to buy a lot of things that you're going to have to sell. And if you're going to do that, you're going to be able to get as many people on auto-ship as possible. So if you're going to do that, you're going to get as many people on auto-ship as possible. Because if we've got a few thousand customers buying from us every single month, we could not show up to work for a while and make a million dollars. But I know that not everybody is going to buy on auto-ship. Not everybody is going to stay around. Some people are going to cancel. So for some people that don't buy on auto-ship, you still offer a bundle and get as much cash upfront as possible. And with that cash. We're going to reinvest that into getting more first-time customers. So to put this differently, the money that we get from the bundle offer is going to pay for our advertising, and that advertising is going to allow us to put as many people into auto-ship as possible. This becomes the flywheel that allows us to have one product that sells a million dollars or more. Now, how do we get people into this flywheel? Well, there's really only two ways that, for our purposes, we're going to worry about. The first way is we can run ads. For people who don't want to work that hard, this is where you want to be. You want to have ads that put people into this first purchase. You're going to pay for that advertising with bundle offers, and some of those people are going to become auto-ship customers and buy for a really long time. But the other way to get customers. The other way to get customers through this system is by building an audience. Nobody wants to do this, but it's the most profitable way to build a business, especially when you are under a million dollars. So can you guess what I'm going to recommend? I'm going to recommend that at the beginning of your business, you do audience building. And then once you have some repeat customers, then you can start to turn on ads. Here's why. Audience building is fun. It's free. And it takes a lot of work, but it works. It's the best, I think most predictable way to get your first 500 customers or so. Then once you've got a little bit of profit coming in every single month and you've got some people who are buying your bundle offer, you can use that profit and you can put it into advertising. That way you're not blowing through all of your savings and all of your profit by spending it on whatever meta is going to do next. I think you should start with the free way, the hard way, the grindy way for the first one to three months, and then turn on advertising. This is what I see be the most predictable way for people to get sales right out of the gate and build that compounding sales machine. I'm thinking about one of our clients, his name is Miguel. He spent six weeks doing audience building, and he had a big launch, did about $100,000 in sales in his first launch. Incredible result. I think that's the record for our client base at capitalism.com. He just blew it out of the water. Then he had enough profit from a big launch to be able to invest in ads and get regular customers, and now he's got a nice seven-figure business. That's the model that I'm going to recommend. We start with audience building, then we turn on ads. Let's put this all together. I'm going to tell you a story about one of our clients. Her name's Amy, awesome girl, stay-at-home mom, former attorney. A year ago, she got involved at capitalism.com. She joined one of our communities, came up with an idea for a women's wellness product. She had never built a business before. This was her first foray into entrepreneurship. Again, she's at home raising a couple of kids, so she's doing this on the side. She doesn't have a huge budget to be able to launch this thing, but she feels really excited to bring this feminine wellness brand to life. She does the work of building an audience, not a big audience, just a few hundred people. What that looked like is she made a little bit of content on Instagram. She's got a few hundred people. Most importantly, she was interacting with everybody who was engaging with her. Anytime somebody left a comment or liked one of her posts or became a follower, she was reaching out to them, sending voice memos, saying, "Thanks for following my work. I'm getting ready for launch," that kind of thing. When she came out of the gate, her first month, she did about 300 sales. That's good. That's not amazing. It's not a record, but it's good. Her product was about $50. Her first month ended up being about 15K in sales. It's a really strong month, not out of the ordinary, not a bad, not good, just a really good launch. Here's the kicker, though. Amy's customers were almost all auto ship because she incentivized people to be on auto ship subscription versus just buying one time. You can buy either one, but obviously, as a business owner, we want people to be buying month over month over month. She incentivized people to be on auto ship, and most of her sales came from people who were choosing to subscribe. That meant that the next month, she already had those $15,000 in sales, but she added another 300 sales. Now, I'm no math genius. I believe that $15,000 plus $15,000 equals approximately $30,000. in sales. So month one, she sells 300 units. Month two, she sells 300 units. She didn't sell any more units in month two than she did in month one, but her sales doubled because she had the previous customers buying again on AutoShip. You see where this is going? This is the time where Amy turned on ads. Since she already had $15,000 a month coming in as recurring revenue, she was able to invest a little bit of money into ads to get that second batch of 300 customers. So in month three, she kept those ads running the same, and guess what happened? She added another 300 new sales. Now, once again, no mathematician here, but $15,000 plus $15,000 plus $15,000 equals $45,000 in sales. Now, this isn't just $45,000 in sales month three. This is $45,000 in recurring revenue with just one product. Now, at this point, she could have decided to launch product number two, but we were on a coaching call, and I was like, hey, maybe you just, want to change nothing. Maybe you just want to keep adding 300 recurring revenue customers every single month, which is approximately what has happened. So she went from 15 to 30 to 45 to 60 to 75, and by about month six, she was pacing a million-dollar business. I caught up with her a few months ago when she was just shy of a year in business, and she's on pace for about $2.5 million in sales. So she's on pace for about $2.5 million in sales. So she's on pace for about $2.5 million in sales for her first year in business. It's amazing. It's because she's following a model that compounds every single month. Now, just for full disclosure, I'm not factoring in cancellations. Of course, you're going to have customers who cancel, and you're going to have people whose credit cards fail. But we're also not factoring in when things start to build and compound, there's going to be lots of days when you get more than five sales a day or 10 sales a day or whatever your target is. But if your product is $60-ish, and people are buying that every single month, that means that every day that you add five people, you're adding $300 a month in recurring revenue. That means 9,000 month one, 18,000 month two, 27, and that compounds to a million-dollar business in about nine months. And 12 months in, you're pacing a million and a half bucks. It's not overnight. But if you can build a seven-figure business with strong recurring revenue after 12 to 18 months, you've done a pretty darn good job as a starter entrepreneur. So I started out by telling you about one of my brands, Switch, that was kind of struggling a year or so ago and stuck at about $10,000 a month in sales. Here's how we changed the model so that it's now a very consistent seven-figure winner. First of all, we keep building the audience. We make content on a regular basis and continue to engage with every single person who likes our stuff, comments on our content, etc. Those are the customers that we are manually working and manually connecting with and sending them over to buy on Amazon or our own store. And because they've had some sort of engagement with us, those are likely customers to stick with us for a very long time. It is worth your time to engage with your customers and your potential customers. And if you're a customer, you're going to be able to engage with them for a very long time. And create a great experience for them so that they stay with you for a really long time. On top of that, we're running ads. Not a lot of ads, but some, with the goal of not turning a profit, but just breaking even. If we can run ads that break even, knowing that some of those customers, about 40%, are going to buy on Autoship and stay with us for at least a few months, we're able to build up a compounding sales machine. So we have this two-part approach. We're building the audience and creating connection with customers. And we can tap in a few customers every single day just from our one-to-one interactions. It's worth your time to do it. And the second part is that we're running ads to keep the machine going with people who have never heard about us before. That two-part approach, with that targeted towards one product, is what took us from a struggling $9,000 a month brand to a profitable seven-figure brand. And right around the time of the recording of this video, we just launched the second product. And the second product is complementary to the first. And now we've got the customer base that we feel good about that will literally buy our second product. So we've got the compounding machine and the customer base to be able to handle a second product. Whereas before, we were looking at how many products can we launch and manage this big ol' messy machine. Turns out, if you have really clear focus, you can take one product to seven figures. And then you can decide if you want to launch multiple products or if you want to continue to compound those sales. If after watching this video, you would like some help building your compounding sales machine, if you would like to develop a product with recurring revenue and predictable sales every single month, you might want to get on the waiting list for our next boot camp, which is where we work with entrepreneurs closely on implementing these strategies into their brand and business. And you can get on the waiting list over at capitalism.com/bootcamp. Or if you've never heard of me before, my name is Ryan Daniel Moran, and I help entrepreneurs build seven figure brands and prepare for a multi-million dollar life changing exit. And you can download our free resources and discover how we build brands and take them to seven figures over at capitalism.com/100k. That's the best place to start to get all of our free resources. My name is Ryan Daniel Moran, and I help entrepreneurs build seven figure brands. And I appreciate you letting me mentor you on your journey. If you found value today, you can let me know in the comments or you can shoot me an email. I'm [email protected]. Thanks for watching. I'll see you guys next time. Take care.

Podcast Summary

Key Points:

The traditional model of reaching a million dollars requires four products each making 25 sales a day at a $30 price point, which still works but is not the fastest path.
A newer "compounding sales model" can build a seven-figure business in nine to 10 months with just five sales a day from a single product.
The key shift is focusing on retaining existing customers and generating repeat purchases rather than constantly chasing new first-time buyers.
Products must be premium-priced (roughly double the competitor average) and consumable or subscription-based to support the compounding model.
A two-part customer acquisition strategy works best
Bundle offers generate upfront cash that funds advertising, while auto-ship subscriptions create predictable recurring revenue that compounds monthly.
A client named Amy grew from $15,000 to $45,000 in monthly recurring revenue in three months by adding 300 subscribers monthly, pacing toward $2.5 million in her first year.
The Switch brand went from a struggling $9,000 per month to a seven-figure business by applying the compounding model with one product before launching a second.

Summary:

" While the old model of four products each generating 25 daily sales at $30 still works, Moran has observed that brands with fewer products often grow faster because their focus isn't scattered. He introduces the compounding sales model, which generates seven figures with just five sales a day from a single product by prioritizing customer retention and repeat purchases over acquiring new customers. For this model to work, products need a premium price point—roughly double the competitor average—and a consumable or subscription element.

Moran recommends starting with audience building through organic content and personal engagement for the first one to three months, then reinvesting profits into advertising. Bundle offers provide upfront cash to fund ads, while auto-ship subscriptions create predictable recurring revenue. 5 million in her first year.

Moran also describes how his own brand, Switch, went from $9,000 a month to seven figures using this same approach with one product before launching a second.

FAQs

What is the traditional formula for building a million-dollar business?›

The traditional formula is 100 sales per day across multiple products. For example, four products each doing 25 sales a day at a $30 price point generates just over $1 million per year.

What is the faster method for reaching a million dollars in revenue?›

The faster method, called the compounding sales model, focuses on repeat customers rather than acquiring many new ones. It can build a million-dollar business in about 9 to 10 months with only about five sales per day.

Why does the compounding sales model work better for some entrepreneurs?›

It works better because focusing on one product and turning existing customers into repeat buyers creates more predictable, compounding revenue. Many entrepreneurs get distracted when managing multiple products, which slows growth.

What type of product works best for the compounding sales model?›

The best products are premium-priced and consumable, meaning customers need to repurchase regularly. If your product isn't consumable, you can add a subscription or recurring element to it.

How does the compounding sales model use upsells and subscriptions?›

After the first purchase, you offer bundles to generate upfront cash and incentivize auto-ship subscriptions. The upfront cash from bundles funds advertising, while subscriptions create recurring revenue.

Should I start with ads or audience building?›

Start with audience building for the first one to three months. It is free and helps you get your first 500 customers. Once you have repeat customers and profit, then turn on ads to scale.

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