hey there so I wanted to share with you
a little system that I put together that
I've used for really building my
business in a much more I'd say just
financially conscious way
this isn't about investing or
necessarily saving but a lot of the time
when you're building the business you
want to grow it right you want it you
want to grow it and it sometimes is
problematic to be able to actually grow
while still being able to keep money in
the bank and I've dealt with this
problem for years I've made tens of
millions of dollars and I've spent
millions and millions of dollars and
until I started doing this type of thing
you didn't really keep money you know
didn't keep money in and it feels a lot
better to be a multi-millionaire and a
safe money and invested than it is to
just keep on building a business
building a business and and and don't
get me wrong there's certain businesses
that are right to grow and but a lot of
the time most you know if you look at
the way that most entrepreneurs actually
become financially wealthy
it's either by selling the business or
it's by being able to take money out of
the business and you know put it
elsewhere and so I wanted to share this
this with you today so this is actually
using my own actual numbers so a little
vulnerable but you know I think it's
actually important to understand the way
that I do it so that it's not just some
random values in here okay so a little
bit of it is open and we're gonna go
today so the method is this the method
is I'm running a business and on one
side the front-end somewhat courses
digital products that stuff that is
taken care of my advertising costs my
growth cost my core team and my paid
advertising and you know any
subscriptions and that type of stuff
okay so and then on the backend which
I'll show you in a minute the backend is
based upon pure profit right so the
backend is it's my kind of other
programs alright so so this is how it
works so I'm taking a look at this so
you know my my workshop
which is my five-day is a couple
different workshops depending on when
you're watching this recording this in
June so I'm gonna have another workshop
that comes out in August but these
workshops are $95 and heavily promote it
you know I'm the first person to say I'm
not making a lot of money from that okay
in terms of profit but overall here's
the revenue so I got about fifteen
thousand coming in a month in affiliate
revenue have other one-time revenue of
you know smaller courses this is my
other kind of larger courses this is
what's coming in you know on a monthly
basis I've also just so you know this
August kind of inaccurate what I did is
I just copied July cuz you know it
didn't didn't these are these numbers
are gonna be higher and if you're
looking at here and so what happens if
someone comes into the workshop and then
they either buy this or you know they
you know buy the horse and the
reoccurring sales are either you know
100 150 years three hundred dollars a
month that people are paying for
anywhere from three to twelve months
okay so that so this is where you were
put in your income right this is where
you would put in your digital product
income all right so a lot of people they
they go online and they want to buy it
build a course business you know course
businesses at the beginning are
profitable but when you go to scale them
they're not as profitable like you're
making majority of the money on the back
end so my recommendation is always to
make the money on the back end so so so
kind of like thinking about it this way
if I can just kind of show this to you
so let me just open this up so let's
let's look at it this way so when
somebody let's say you're gonna do in
course sales okay and let's say you're
doing one hundred thousand dollars of
course sales a month okay typically
you're gonna spend you know unless
you're really in a different type of
like you're gonna spend sixty percent on
advertising you're gonna spend another
ten percent on delivery right you're
gonna spend another ten percent just on
like other growth and you're gonna spend
about ten percent on teen and so your
margin is ten to twenty percent right so
that means that you know two hundred
thousand dollars of oh sorry a hundred
thousand dollars
into a pretty small profit margin okay
and so you always put money back in and
yes your building audience so that over
time your monthly revenue will increase
but the problem is is that like this is
business model you know doesn't make as
much sense so what I see is this it was
like let's have a course that are you
know let's have a digital product that
leads to a course and and and that then
leads you know to a back-end right could
be anything back there and then what I
say is like let me take 100% of the
revenue that's in the core let's just do
front end products and let's just put it
all into growth of the business and then
you take 100% of the revenue of the back
end and you put it into growth of your
wealth okay so so and wealth could be
investing you know it could be you know
creating new product lines right
it could be just saving right whatever
it is that you're you know saving for
okay so I'm just going back to this so
you know here and reason I create this
spreadsheet so you created yourself so
here I have you know my current kind of
stack all right now the affiliate cost
is based upon you know about a
percentage of how much the workshop and
the affiliate some people that promote
my stuff and then I have my paid
advertising here I expect to go up but
I'll show you why so this is kinda like
this is what I would call is your
standard okay so if I like every some
amok I know I'm gonna spend about forty
five essentially spent sixty ish
thousand dollars on paid advertising
okay going forward
I know my subscriptions there I have a
pretty small team in terms of you know
only got a couple people my team and you
know that's you know payment fees are
based upon how much in a revenue I'm
collecting here which is 2.9 percent so
essentially what happens is every single
month I have total revenue from this
216,000 my total expense is a hundred
thirty-four thousand now of course some
of its variables right so some of its
this is variable and this is variable
right so I can bring this up and down
and I never bring this up and down the
rest of
kind of fixed cause my Instagram growth
and YouTube grow you know all these
different types of things right so that
means at the end of the month I have
eighty one thousand dollars and this is
the important part of you know come back
to in a second so eighty one thousand
dollars they're not in the next month
pretty much the same thing
generating a bit more revenue alright
now we got two hundred eighty thousand
one hundred and forty three thousand a
profit
same thing for August I just kept pretty
much kept it the same it wouldn't be the
same but I'm just you know keeping it so
see this number right here this number
so what I've essentially said is any
money that I make on my back end which
I'm going to explain in a second I am
going to take pull that money out of the
business instantaneously and it's gonna
take care of my lifestyle my savings my
investment okay now in a perfect world
you would invest money and get your
lifestyle taken care of by the
investments but that takes a little time
sometimes depending also on you know how
much money you're spending on your
lifestyle so I'll just go here for a
second to explain this so I have three
back end really back-end things that I
sell these are not mine that's been
companies or anything like that this is
just purely Scott Alford and my ROI
mentorship that right now is five K + 6
K my accelerator that's 25k 30 K and my
one on one which is 75 K in 90 K and I
have a I have a quarter-million dollar
version but I typically you don't sell
that version much both for a couple of
reasons and and I don't enjoy it as much
if I'm beating on it so that's what this
looks like right so that's one on one
that's why all of this looks like okay
and we'll come back here projections in
a minute but essentially this revenue
here is purely front-end revenue and the
idea that is is that every month I come
in here I'm okay cool so over here's the
actual so you know I'm putting the
actual after each month and then going
into the next month like okay cool so
now I can take eighty one thousand
dollars and I can grow the business so
here's what happens where's that most
people grow their business they grow
their business they go in their bank
account let's see how much money is in
there and they're like okay well I can
afford this or I can afford that or I
can't afford you know whatever might be
and so what this allows you to do is
grow the business from one
revenue and allows you to keep the other
parts or separate right because what
would happen is you know I get you know
let's say I got an a a $75,000 from
payment from you know one of the
one-on-ones I'd go and spend you know
twenty five thousand on Facebook ads and
you know I'd probably didn't need to
right and it also drives me to makes
more systems because front-end products
are typically driven by systems and
promotions and so it drives me to you
know kind of do that so now you know
then I can decide okay do I want to keep
the money in the bank right now
you know what investments do I actually
want to you know spend in terms of you
know what I can spend it grow the
business and so then I go over here to
my growth levers and I oh I'm always
looking out go well where do I want to
put the money my main places I want to
put monies paid advertising for their
content development my partnership
podcast strategy my YouTube strategy my
Instagram strategy right those are the
places where I know I'm you know I'm
gonna get return right now in my
business you know these aren't really a
priority and these are taken care of you
know PR is good LinkedIn's good SEO is
good you're gonna have your own
investments right and so I just save out
of five where do I wanna put the money
to so then at the end of each month and
then at the end of each quarter because
essentially what you would do is say you
know you'd say okay you know what I'm
gonna take 25% of all this revenue and
I'm gonna put it right back into growth
right away cuz I know next month you
know if I made you know let's say I 80
thousand let me take twenty for this
thousand you know let me take another
twenty five hundred and put it in the
Instagram let me take another twenty
five hundred put in the YouTube and let
me take another twenty five hundred in
the content let me take twelve thousand
five hundred and put it into you know
YouTube advertising if that's you know
working for me
okay so then I'm gonna take the other
75% I'm gonna again this is just you
know a random orientation of numbers but
I think the other percentage I'm gonna
say you know what that's for my
long-term marketing investments okay so
let's say I want to go and uh or let's
say you know I have a really great
opportunity to to you know perhaps buy a
company that could generate me more
leads or you know I can I can buy an
email list or buy a Facebook group or
whatever might be that's what I would
use that money for okay
so that's so that's that's that's that's
essentially how I separate it then on
the back end
essentially I'm looking here and so this
is very much my back end and sort of you
know the the number of probably symbol
of itself so now I can look at if I look
at an overview so June July August so if
I hit the numbers that I'm looking ahead
here and this is based on past history
of the last three months so with July
we're gonna half in 24 631 674 so my
core expenses you know right here now
this does not include my life expenses
or I need anything for me because it's
purely the business so you know I
believe I believe that your business is
the sovereign state and you're the
citizen okay so there are two different
things I'm not going into the saw I'm
not going into the country's bank
account taken out of money
so that means I have this amount of
money left alright so this is how much
money I got left now as you see here my
back end my only other expenses are any
of the events that I hold here which I
haven't put inside of this document but
you know it's not that expensive these
are these are fairly intimate events
they're not costing you know fifty
thousand or even one hundred thousand
you know these events cost ten thousand
this event by maybe Houseman it's 25
okay so pretty pretty nominal for the
amount of money I'm generating so I'm
not worrying about that right now so now
I look here and I'm like okay cool so
June July I generated you know let's say
I hit those numbers of eighty one
thousand dollars in June that I'm
hitting for that that means I have in
July of an extra eighty one thousand
dollars to spend in in July I have an
extra forty one forty three August 143
if I can find them together what is it
three hundred sixty nine thousand okay
so I might take and spend seventy five
thousand of that or my book launch
coming up in the in them and honest I'm
gonna I'm gonna take this I'm gonna pull
this together spend all that money when
my book comes out because I want that to
you know do whatever might be and then
lifestyle for the most part cost about
$25,000 so I pull that out on a monthly
basis which means that my remaining okay
my remaining is this is how much money
I'm literally pulling out of the
business now I keep it in a business
bank account because I don't know where
I'm gonna be used that money I don't
know how I'm gonna be paying taxes if
I'm gonna be putting in the long term
insurance if I'm gonna be putting in a
long term investment if I'm going to
take that money and invest
back into the business for example I
want my business to buy another business
whatever it might be but then this is
how much money so so I have eighty one
thousand dollars to grow and I have two
hundred eighty-three in profit 140 days
so this makes it so that I'm not and
keep in mind guys
like I know that these are maybe some
big numbers for if you if you're
watching there might be small numbers if
you're watching this who knows
everything's relative but overall like
you come in here and you put in any
amount of money ten thousand a month
five thousand months twenty five
thousand month this is gonna allow you
to separate it now also keep in mind my
business is very based on my time but if
it wasn't it still sort of you know it
still still sort of works which which I
also go here and I'll look at okay well
how much time do I need to spend in the
business right so anytime and do numbers
and trying to hit you know I'm trying to
and I don't try to hit numbers I'm more
to just look at okay well you know how
many people do want to help how many
people I do on to this and what the you
know what's it gonna look like so you
know if I look in here so June
all right so if June if I sell the
number you know that's over here thank
you
I just think I think I made a mistake
so this is how much time so I got six
hours for growth which isn't content
development that's have a thing I'm
pretty efficient when I work for hours
management doing finance stuff and then
so here we go one on ones my accelerator
group my accelerator 101 calls my ROI
group in my ROI mentorships my ROI
mentorship every single new person that
comes in they can afford even a phone
call with me right so you know I'm I'm
making this nicer it's actually a little
probably a little bit less time so every
single month there's not how much I work
but this is how much I can work so if I
take a lot of time I take a week off per
month if I do that okay I go I'm working
18 hours a week
don't do that I'm working thirteen and a
half and then I go in my all right well
if I continue because of the way my
accelerator six months my one one six
months and my other programs four months
so then I look at this I'm like okay
cool
how much I'm working at the fullest
extent when I'm making you know my
fullest is going to be
what is it gonna be I don't actually
have it here but it's this time so I got
three months here so I probably add on
an additional 100,000
call it three quarters of million a
month so costs three quarters mish yes
yeah three quarters million yeah three
so call it three quarters a million
dollars a month assuming the front end
doesn't increase just the back end then
I would be working you know twenty five
hours a week or thirty three if I'm
taking a week off and so that I'm like
do I want to do that for the next six
months and in my car kiss I'm like yeah
you know what that makes sense cuz I'm
making like $10,000 or $12,000 an hour
I'll do that right that makes sense to
me right but this allows it so that you
can then go in and be like okay because
if you're in the planning phase right so
if you're not doing this retro actively
and you're in the planning phase you can
go in and be like Oh what does it feel
like if I do you know you know eight
hours here right you know what does it
do if I do you know if what happens if I
could only have two people here right
and then you know the finance is
obviously change and that's that thing
so I just want to show this to you
because this is how I find from
everything I've done this is how I've
been able to create growth in the
front-end profit on the back end then I
could actually then take it out of the
business because you know I'm not trying
to sell this business I'm trying to
invest in other businesses that I can
then go sell so any who wanted to show
this with you share this with you
thought it would be an effective use of
some of your time and you know for every
business owner I want you to become
wealthy and I want you to have a big
audience and I want you know growth in
all areas of your life so enjoy
talk soon bye