It's very scary. Approximately 26% of all Americans have no savings. Only 7% of people even have savings accounts! 76% of American households are living paycheck to paycheck, yet the average American has $4,436 in savings. The typical 60-year-old has less than $200,000 saved for retirement. It's not surprising that the majority of people don't think they can actually become millionaires. What if, though, I could teach you how? What if I could teach you how to earn an additional $2,000 every month, and with just 20 years of investment, you could easily become a millionaire? Do you want to do it? Continue reading if you said YES to the question.
Let's use a real-world scenario that I just presented to Josh, my personal trainer. It is the ideal illustration of how he, you, or anybody else can accomplish it. Josh had 15 weekly clients who worked out with him for an average of three sessions, charging $50 per session. That equals $9,000 a month or $2,250 per week. He liked the idea when I presented the $2,000 = $1,000,000 notion, but he didn't think he could find the extra $2,000 per month to invest. He simply thought it was a pipe dream. He already had a mutual fund set up, yielding 6% annually, but it only had $1,000 in it, despite his monthly investment of $100. And that lies the issue, people. Although many of us have retirement accounts set up, the contributions we make are just insufficient to increase our net worth. For this reason, we need to start generating at least $2,000 additional every month to start making progress. Here is the plan I put together for Josh to make an extra $2,000 or more per month. How many total additional hours per week will I need to work was the key question. The response? Two. Yes, two extra hours a week will turn him into a millionaire. The same probably applies to your company with ease. No matter what industry you are in.
The route is as follows:
Boost the value you offer. Josh only worked people out, that was all he did. There are no meal plans, movies, body fat index tests, or recommendations for meal preparation or nutrition. In other words, he provided little (actually none) EXTRA value for his clients. Without boosting value, you cannot raise pricing. He then implemented each of the value-added programs we established together within a week. Josh registered for an email service (there are many, such as Constant Contact or MailChimp), entered the email addresses of his clients, and presto! He had a platform to send them value-added messages whenever he wanted. Then he produced content for a straightforward weekly newsletter of one page, which was sent out by email on Monday morning at six o'clock. He included excellent recipes for quick meals in the newsletter. Along with suggestions for vitamins and supplements, he also discussed diet. He informed his readers about the area's farmer's markets and the food that was available there that was in season. Even more, he provided a DATE NIGHT SUGGESTION part in which he advised his customers to go on a date night, explaining the benefits to their marriages and mental health as well as providing suggestions for memorable locales. Finally, he began to videotape himself working out and included the exercises in his newsletter for his clients to use on their off days. See what I mean? He began constructing a foundation of value-added services for his clientele that informed, educated, and entertained them. Two extra hours per week in total.
Price increases His fee was increased from $50 to $60 every session. $10 is a relatively tiny sum. But not all of the clients accepted it.
What was said by his client? He lost several customers because they were unwilling to spend the extra $10. Since they had never received the newsletter in the first place, they were unable to recognize its value addition. They merely desired a lower price. No issue, that's the goal of step #3—to gauge the value you provide to your clientele. Josh's situation involved some cheap clients AND the fact that he was not providing them with enough value. They then left him. Some of your customers will stop doing business with you if you raise prices without giving them enough value. And they ought to! Value is the key in today's crowded and cloudy marketplace. You must provide value that is greater than the cost you charge.
Put on Your Selling Hat. Josh lost some clients, so he had to get to selling to find replacements and a few more. But now, he was starting with a new price ($60) and a new product offering. This time it was - """"Josh aka The Super Trainer"""", who cares about his clients more than anyone else and he proves it each and every week through the content he puts in his newsletter. He was now focusing your muscles, your mind, your food intake and even your relationship. He started asking for referrals from his existing clients and asked them to reach out to their family, friends and co-workers. I also had him talk to some of the busiest trainers at his gym and asked for their overflow, the clients they were just too busy to take on. Within 2 weeks he replaced the clients who dropped out when he raised his prices. It was ridiculously easy to replace them and he actually added 3 more for a new client base total of 18.
The end result:
Josh now has 18 very satisfied clients who get his VERY informative weekly newsletter and can watch his specific workouts on their off days. His new client base are all paying $60 per session X 3 sessions per week, and it now equals $12,960 per month. An increase of $3,960 over his prior income level.
I almost forgot... how will Josh's extra 2 hours per week make him over $1,000,000 and why should you tweak your business to find $2,000 per month to invest? Here is how it will work out for Josh. He is 30 years old. He will now increase his monthly investment from a hundred dollars to $2,000 per month because he has $3,960 more money coming in per month. Even after putting $2,000 away, he still has $1,960 more money than month! His $2,000 will go into the same mutual fund that has an average annual rate of return 6%. At the end of 21 years, it will be worth $1,017,000. He will be 51 years old and have $1,017,000+ in his retirement account! If Josh wants to continue this until he is 60 years old, he will have $2,011,000. It can happen if you just start. It's easier if you start in your 20's or 30's, but it can be done if you start in your 40's, 50's and even in your 60's.
2 hours extra per week, and $2,000 extra per month are magic.
Get ya some magic in your life!"""