This question can get a little confusing? This is also a multi-part question so bear with me.
The first thing you have to ask is:
Do you want a 100k in revenue?
100k in profit?
Or 100k in your personal earning?
One of these is far easier to obtain the other two.
Let’s Define Our Goal?
The first step is to define our true goal…
100k in Revenue: you sold 100k in goods
100k in Profit: after all expenses are paid (your Amazon fees) you have 100k you can use to pay for more product or pay yourself with
100k in Personal Earnings: you took 100k out of your profit and paid yourself with it
100k in Revenue
The formula is to make 100k in revenue is simple.
To make 100k you have to sell 100k of units (product)
100k in revenue =100k worth of units sold
Example: 100k in Revenue
If each product costs $15.00 you have sell 6,667 units of product.
$100k in revenue= 6,667 units ($15.00 each)
Now let’s do a break down of a real life example.
If you have not already watch the Launch Logic video. It will teach you that you’ll need to have both a decent number of reviews and have to reach page 1 or 2 to reach a point where you’re able to sell those 6,667 units with minimum effort on your part.
Now once you get to this point with a popular enough product you could reach your goal in less than 12 months.
100k in Profit….
Now to reach a 100k in profit, You’ll have to realize you’ll have to make 100k in revenue first.
After you’ve sold that initial 6,667 units, you’ll have to sell more units because things like Amazon fees and shipping costs will eat into your revenue you’ve accrued.
Example: 100k in Profit, Part I
At $15, let’s say you have what we call a profit margin. This is the money left over after taking on shipping costs and cost of the product.
For this example, will say our profit margin is 40%.
$15 (cost of product) x 40% (profit margin) =$6.00 (profit)
So after selling them 6,667 units, you’ll receive $40,002…
So to determine how many units you need to sell for 100k
You simply times divide 100k by 6.
100,000 (desired profit)/6 (profit, money after fees)=16,667 units I have to sell
This means to make 100k in profit I have to sell 16,667 (I rounded up)
There you have it, in order to make 100k in profit you will have to sell 16,667
You want be surprised but this is actually very doable on Amazon
Lets also remember you don’t have to do this with just one product. You could have multiple products at the same or different price levels to help you reach the necessary units sold.
Now to Make 100k in Personal Earnings…
This is slightly more complex
You’ll have to meet the conditions for 100k in revenue (6,667 units sold).
You’ll have to meet the conditions for 100k in profit (16,667 units sold).
Now for personal earnings you’ll have to realize this may become a sacrifice for your business.
Technically, you can pay yourself the 100k in profit, but that would essentially be the end of your business.
So you’ll have to determine a salary or budget for yourself, so your business can still run and you can pay yourself.
But for the most part you’ll have to sell more than 16,667 units to pay yourself and maintain your business at a level that maintains itself at a 100k-profit level.
You now know what you need to do to make 100k in profit, earnings, and personal earnings
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