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How 2,000 Monthly $40 Trash Subscriptions Can Build a $1M Business
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0:00Let's talk about what a million-dollar trash business looks like. Based on what we've seen from industry averages, 40 bucks a month is what I'm going to use. So, 40 bucks a month is roughly $500 a year. Now, if I have $500 per year and I want to have a million-dollar business, then how many customers do I need? I need 2,000 clients or customers to be paying me on a monthly basis. Then all I have to do is figure out what my churn rate is and how many customers I need to sign up. So, let's just say that we sell on average 200 people per month. Okay.
0:27Well, if we're churning at, let's say, 1% per month, that means that we're going to lose two people month one. Here's where it gets kind of wild. This number, let's say we're 10%, I would literally never get there. Because all you have to do is divide 200 a month by your churn rate and you get your max. And so, the key to everything is find stuff that people don't want to cancel.