My Revenue Outpaced My Business – Episode 151


– What’s going on everyone, this is Steve Larsen and this
is Sales Funnel Radio. Today we are going to
talk about what to do when your revenue outgrows your business. (intense intro music playing) I’ve spent the last four years learning from the most brilliant marketers today. And now I’ve left my nine-to-five to take the plunge and build my
million dollar business. The real question is how will I do it without VC funding or debt,
completely from scratch. This podcast is here
to give you the answer. Join me and follow along
as I learn, apply and share marketing strategies to
grow my online business, using only today’s best
internet sales funnels. My name is Steve Larsen and
welcome to Sales Funnel Radio. (intense intro music continues) What’s up guys, hey, I am
very excited for this episode. So, when I officially left my job, just like the intro to this podcast says, January first, it’s been five months. Five solid months now, five and a half-ish by the time this episode goes out, (laughing) and five and half… Sorry, five and half months and it’s been fascinating to watch what’s happened. So follow me here, this is what happened. Okay, so I left, right, and
I had this awesome idea, I vetted it, I knew it’d be successful and what I did is I went and I started launching, launching,
launching, launching, launching and what started happening was over on this side was the sales. Sales, sales, sales, sales, revenue, revenue, revenue, revenue. Lots of money started coming in. I was like “Whoa! This is crazy, “I’ve never had this much cash coming. “Whoa, my gosh, whoa!” And all this cash started dumping on in. And we did about 100 grand the first month and then it’s just continued. It’s down like 50, so we
do, like, 50 grand a month and that’s where it’s been
at and I slowed it down because here’s what started
happening, I started going… You guys might be like, “Hey, that’s kinda “funny, why would he slow it down?” I actually slowed it down. We’re keeping it at 50
grand a month right now, right, because here’s what happened, January, February, March was
like sell, sell, sell, sell, sell, sell, and I’m selling,
and we’re making cash, and it’s coming in, and
we’re at a 100 grand. You know, 100 grand, right… Boom, boom, boom, boom,
boom, we’re making… A lot of cash coming in
and then what we did is… What I started realizing was the actual, my actual business wasn’t able
to handle what was going on. (laughs) Right, I was like, “Crap, I’ve never ever “thought that this would
ever happen to me.” And I say that because when I started building all these funnels
for these companies while I was in college and
it always happened this way, right, and I’ve said this before but it always happens this way where, you know, the funnels that we build, they sell things very, very, very well. They do, they sell things very well. It is like… I don’t know, it’s like… I don’t think people will understand how well the funnels work, and what that does, though,
is it actually creates a business problem on a funnel problem. Here’s what I mean, I was going and I was building all these funnels for people in college and there’s this guy I was building a funnel for and when I put the funnel up, I did this research, and I ran ASK campaigns, and I figured out exactly what his customers needed, and I went and I put
those things together, and I put the funnel together,
and we launched it, and boom! He made a lot of cash real fast and through those funnels it was like, he did like 50 grand really quick. 50 grand in the first month,
it something like that. I can’t remember, it
was a long time ago now. But there was a lot of cash coming in and then it kept going,
and going, and going. It was always funny because
day number one was like… Day number one after launching the funnel, the business owner always
comes and they’re like, “Oh my gosh, look at
all this cash coming in! “That’s amazing, these
funnels are so cool!” Then day number two, they
always reach back out and they’re like, “Wow,
this is really awesome. “Holy crap, that’s still a lot of sales.” Then day number three,
they’re always like, “Turn it off! Turn it off! “You’re gonna bankrupt us, turn it off!” And I remember I was kind of laughing when they said that, I
thought they were joking. I was like, “Why would I
ever turn off this… ” Why would I turn off this
funnel? Who wants less sales? I’ve never heard anyone
say that in my life ever and at the time, I was making fun of it. (laughs) I was like… I just didn’t know any better. I was like, “Aw, that’s stupid, why would you ever want less sales?” And he had run into a
situation where the revenue was outpacing his business, right? Funnels are not businesses, they’re not. Right, a funnel is a revenue arm. A funnel is a very effective
way to sell stuff, right? A business, though, that’s
completely different. A business is a series of
systems, that’s really all it is. It’s a series of systems that fulfills on the funnel, that’s really it. Okay, that’s the way I
define it anyway, okay? And if you don’t have
enough systems in place, it means that every person who purchases from you is being
fulfilled on differently. It means that every
person who’s coming in, right, and has a support question, you’re treating it
differently every single time. It means for every single, you know, package that needs to get shipped out there’s not a process in place. It’s literally different every time, and what’s hard about that is that it makes it very challenging to scale, and especially if you
were just starting out and you are kind of a
solo guy for a while. You’re a solo, individual
person for a while and you’re kind of running
on your own, that’s great. That’s a great place to be, but eventually you’re gonna get to a
place where your revenue starts to outpace your
ability to fulfill well, and that’s what happened to me. (laughing) Okay, right, funny enough, right, I graduated
college, started working at ClickFunnels, and we did the exact same thing to, like, so many other people. Day one we launch an amazing funnel. They’re like, “Oh, my gosh,
look at all the sales!” Day number two they’re like, “Wow, that is “still a lot of sales, oh my gosh.” Day number three they’re
like, “Turn it off, “turn it off, (coughing),
turn it off, there’s no way… “Oh, my gosh, that’s not gonna… ” You know, “We’re gonna
die, you’re literally “gonna bankrupt us,
we’re not gonna be able “to fulfill on all this
stuff,” and I remember the second time it happened it was for a funnel we had built for… I don’t know if I should
say the name, but anyway, Russell and I built this
sweet e-comm funnel. It was amazing, they had
tons of revenue coming in, and they spent the next
two or three months simply upgrading and
building and solidifying and putting in place
systems, things inside of their company so that it actually could handle the revenue, isn’t that funny? I don’t know, for some reason I had never, ever considered that for such a long time, and so what I started doing was… Right, and I ran into the same thing. That kept happening at ClickFunnels when we would build, you know… Part of my first role when I
got there was to fulfill… I built a lot of funnels for
Russell’s personal clients. I built a lot of funnels
for ClickFunnels itself, but especially when I
first got there there was, like, his personal clients
that he was doing it. I was building them, putting them together, and so it’s funny. It’s like one after the other
after the other, and a lot of these guys, what we noticed
is that traditionally… Like, I have a marketing degree, right? In business what I, in
business marketing degree that I got, in actually college itself, they do a lot on teaching the business. The actual systems and the structure. They do hardly anything
on teaching sales, right? Which is so funny, which just makes sense why everyone goes and gets VC funding, because they build the team and there’s no cash to freaking support it. You’re like, “That seems backwards.” Anyway, so right, so I
went through and I started, I started going through
this very same thing. I started recognizing it coming
up, right, and I started… I launched all my stuff and I was like… It was like, “Money, money, money, money,” and I was like, “Holy crap,” right, and I was still at that time really the sole operator of my business. I was like, “Huh, this is interesting.” I know what happens next, pretty soon it becomes so high, the tower gets so tall that eventually there’s
not enough foundation and it starts to crumble and
you start getting refunds and people start saying
bad things about you. And I was like, “Crap, I
don’t want to hit that,” and so funny enough I
actually purposefully had my amazing ads person, which I know I will interview her one day and put her on here because she’s incredible, but I had my amazing ads individual go and we kept the ads tiny because I did not have the power to fulfill
at the rate I wanted to, at the rate I was able to sell at. And funny enough, usually most businesses are the exact opposite. They’re like, they got the sweet structure and they don’t know how to get new cash. Well, I’m a funnel builder, baby. Like, the cash part’s not the hard part… (laughing) Right, it’s this other way. So, what I’ve been doing and I don’t know, I guess I’ve been feeling the need to… You know, it’s June now, to account, let you guys know what’s been happening, and so for the first, like, three months there’s been, like, a
lot of cash that came in. I was like, “Oh, my gosh, that’s nuts. “Crap, I’m like the only guy,” you know? And I was like pulling my
hair out, just stressed 24/7, and I remember I was talking to… This wasn’t an Inner Circle meeting, but I was talking to a lot of the members. We were hanging out at someone’s house and we were all just kind of hanging out and they were asking
what’s going on and I was telling them what’s going
on, and someone said… Someone was talking about, you know, you’re probably gonna
have to put the brake on just a little bit to
go build this stuff up and then you’ll be able to
handle more cash coming in, and I did not want that to be the answer and I really did not want him to say that. (laughing) And I was like, “Aw, sell, “sell, sell, sell, sell,” but… So, what I’ve been doing is,
so the first three months of the year, right,
was like a lot of cash. The second three months, though, this last three months has been… I’ve been doing a lot of stuff, right. I’m one of the coaches for
Two Comma Club Coaching X, the new 2CCX program, and it’s
going freaking incredible. Right, but I’ve gotten my own processes down in place there now
and helping them fulfill and helping them do amazing
stuff and helping everyone, you know, make cash and make money and put their funnels together
and stuff like that. So, I’ve been doing
that as well as actually my webinar stuff that I’m doing, right? So, I’ve been selling,
selling, selling, selling. It’s been a lot of… Tons of fun, backed off on
the selling a little bit. I put together a lot of
systems in the past little bit here, a lot of them, and
it’s been a lot of fun. I always thought that it was kind of like a drag, but I know now why. Because without huge cash
coming in why on earth am I building the system, right? That’s what my mentality is like. I’m like, “What’s the ROI
of me building a system “when there’s not
buttloads of cash that… ” You know, to match it with, and so that’s what I’ve been doing here. So, anyways, that’s all I
would encourage you guys to do. As you start… If you are selling and
you’ve got cash coming in and you’re like, “Hey,
this is going really, “really well, it’s going incredible,” and you’re having a hard time blowing up, I want to tell you one
thing that Russell told me. Actually, I was sitting next
to him, I had only been working there for a little bit
and I was keeping notes. I mean, I would sit
next to the dude, right? Would you not take notes? Right, so I did, and I had a Trello board called “Brunsonisms” and “Russell Lessons” and things like that,
and I would write down things that I was hearing him say, things that were really profound. I was already fanatic about
his content, but like, really profound things,
and this is what he said… He was talking to one of
his Inner Circle people and he goes, “Scaling from
six to seven figures… ” He goes, “Funny enough… ” I’m gonna botch the quote,
but this is the lesson. He said, “Scaling from
six to seven figures “is not a matter of more
hours in the office.” Okay, “Scaling from six to seven
figures is about leverage.” It’s about leverage, and so if you’ve got a product, right… We’ve done, like, 300
grand, something like that. We did 100 real fast and then
it was like, you know, 70, 50, 50, 50, like, and it’s
been a lot of 50s because… I recognized quickly, I was like, “Crap,” like, “back it up just a bit,” right, and what I’ve noticed is
it’s a leverage problem. Right, so what you’re leveraging, though, is systems, and you’re
putting systems in place that expand you, that lets you fulfill, that lets you, right, go grab
another funnel out there, put something out there that brings more cash in, so things like that. But specifically, right,
it’s a leverage problem. It’s not typically a cash problem. You guys will all notice
and you’ll all see, if you haven’t already, which
I know a lot of you guys are already rockstars and you’re selling. You’re making a boatload of cash already, right, but for those of you guys who are, like, just starting out, you’ll see really quickly, right, it’s typically… When you go and you start,
right, you’re building, you’re building, you’re
getting the revenue coming in. Awesome, and you should do that. Prove to the market that it’s awesome. You find that when you actually have an amazing product, right… Like, my product right now
is so freaking awesome. I keep adding some amazing… Oh, my gosh. (gasping) I just added this really cool thing to it. Another time, another
episode, but oh, my gosh. And the success rate is just, like, skyrocketing because of it. Anyway, aw! Anyway, right, but when
you actually figure out something really awesome, the path to a million bucks is not actually that hard. I was like, “Whoa, that
actually is really quick, woo!” I remember I was walking
out, I think it was my last day at ClickFunnels, and Russell was like, “So, what’s the goal, man?” And I was like, “A million bucks,” and he goes, “You’re
gonna find out real fast “that’s not that hard,” and
I was like, “Oh, hahaha.” It’s not that hard, let me
just tell you right now. It’s not that hard, oh, my gosh. Right, for that funnel right there that I tossed out it was really, really quick. And so what I’ve been doing, though, is now that revenue came
in real fast I was like, “Crap, I need systems to handle it,” and I don’t want to become
so systemized that suddenly the systems start outpacing the revenue. So, I can feel it, I can feel
it and I can tell that I… I have an organization now, right? There’s like eight people on my team now. Right, I have a full-time
employee, I’m getting full-time support, full-time
assistant, I’m like… Right, I’m setting up
the structure so that now I can go back to the thing and be like, “Blow it up, baby, yeah, go,
we’re going to three,” right. “We’re going to three real quick,” right, does that make sense? And if you watch all these
other Two Comma Club winners, they’ve gone through a very
similar pattern personally. While we often study the
funnel, which is great, we study their marketing, which is great. Remember, though, to
actually study their business and the structure of it, and
when you’re funnel hacking you’re not just funnel hacking funnels, you’re actually also
funnel hacking the way they fulfilled on what
the funnel was selling. Okay, and so that’s been part of what I’ve been doing heavily
this last little bit. I mean, I’ve been studying my face off. I got notes and papers all over the place, all over my desk right now. I’ve got… Because I got the revenue now coming in, and now what I’m doing is I’m
building the actual systems and the processes to support more revenue. My current structure, my
current structure could not… I don’t think it could
handle much more as it is. Right, meaning my structure
as of, like, two months ago. My structure now, though,
it’s getting a lot cleaner, a lot cleaner, and I
know that coming up soon here I’m gonna be able to just, like, scale, scale, scale, scale, scale. What I’ve learned and what I’ve seen from a lot of people is… And if you look at the pattern of a lot of Two Comma Club winners as well, you’ll notice in there
that a lot of them… Usually it’s with, like, three to five people they’ll run to
a million real quick. Actually, three to five… Three to five people,
sorry, three to five people on their team, they’ll usually
hit around three million. That’s obviously, my
gosh, that’s different for every business, every industry, but the actual structure,
the business structure allows them to get to that kind of place, usually pretty quickly with
not many people on the team. It doesn’t take a huge team
to do so, to do these things. So, right, like Brandon and Caylen Poolen, they just crossed 10 million dollars. They just had their first
three million dollar month, crazy, and they’ve got
40 people on their team. 40, okay, it doesn’t take
these gigantic teams, though, to make a significant amount
of cash for your pocket. What the roles are… So, real
quick I’ll tell you the roles and then my camera’s gonna die. (laughing) Okay, so what
I’m going for is, right, I am the main marketer,
funnel builder, CEO, right. That’s the position that I’m in. I also have an affiliate manager. Right, that’s my first full-time employee. Not support, right, not assistant. I want other cash
generating people, right. That’s all I want, right,
where there’s still structure. He’s going out and he’s
my affiliate manager. He’s going out and he’s
creating relationships. We’re doing another huge
Dream 100 package drop. That’s actually where he is right now. That’s why he’s not
sitting there right now. He’s at the post office, we’re doing another big Dream 100 drop, and we got a lot of people excited to promote. Right, and he is bringing in new blood. New blood as far as relationships goes. Okay, so it’s me as the funnel builder and marketer and attractive character. Right, that’s the roles
I’m trying to take on. The next one, though,
right, affiliate manager, and that actually was
told to me by Russell. He said, “The next employee I would get, “100 percent man, go
grab an affiliate manager “and then grab, like, an assistant “and then a support person.” Okay, really that’s it, I mean, if you’re, like, shipping stuff out
maybe a fulfillment person. I’ll probably maybe
grab two support people so that they’re almost around the clock. You know, almost, you know, but that’s… I mean, that’s it,
that’s all I really need, right, as far as full-time people. Now, I have content
people, I’ve got like six content people, got an
amazing traffic driver. I do have a bookkeeper,
but those are, like, VA positions, they’re not
full-time on my books. They’re on my books every
month, but they’re not, like… They’re not W-2 employees,
these are 1099s that I… As far as, like, full-time W-2 employees that are actually like
here with me, right… Got the affiliate manager, definitely gonna have a full-time assistant, definitely gonna have full-time support. Because right now we’re
doing the support piece. He mostly is doing support and affiliate stuff, and that’s kind of it. Those are the roles,
it’s really four roles that I’m going for for the business model that I love and am modeling,
and it’s going great and everything’s running how it should. So, anyways guys, hopefully
that was helpful to you. I just wanted to do a
little bit of accounting so that you see, like, where you are, and if you’re feeling
stuck, start comparing back and forth between,
“Okay, is my funnel “revenue outpacing my business,” because they’re not the same, right? Or if you’re like, “Hey, I’ve got this “sweet business and these cool systems “and structures and processes, “but not enough revenue,”
go build a funnel, right. And kind of this balance
between one and the other. They’re gonna have a hard
time outpacing each other. Right, after a while
the structure will get too weighty, you’re not
gonna have the cash to hold the system so the system
will get, you know, leaner. So, I kind of build it like this, right, revenue and kind of up to where that revenue is, then revenue… I don’t like to build the
business past the revenue. That’s called debt and I personally am not a huge fan, so I own my stuff. I don’t want anyone else to own it. All right, hopefully this
was helpful and hopefully… Just so you guys know what’s going on with my team and how I’m
actually building it out and actually putting it together. My content team, they’re
freaking rockstars. I’m definitely gonna interview them so you guys all know who they are. And then over here on the other side, though, right, the W-2
side where I’m actually building out a full-time team with… It doesn’t really take them… Like backwards plan, right, figure it out. Well, how much money is that person probably gonna want a month? How much is that person gonna want? Okay, sweet, right, my hard costs right now are like 25 grand a month. Right, my salary, the other
guys, the other people, the VAs. Hard costs right now for the content team, for everything else, 25 grand a month, that’s not bad at all. All right, sweet, done-zo. (laughing) Let’s do that, so I’ve backed way off, built up the structures,
got the systems in place. We’re just vetting them right now. That’s really all we’re doing, and as of yesterday I talked to
my amazing ads person. We’re gonna go scale these ads like crazy and get them off the ground. So, anyways, I just thought it would be kind of cool to show a
little of the accounting so that you guys know
what I’ve been doing, because my structure could
not handle much more. (laughing) So, anyway, awesome stuff. The next road mark I fully
expect we’ll probably do the… This is me calling my shot, okay. Probably I think we’re
gonna hit the million by October and then, at the latest, and I think we’ll go
to like, maybe 1.4, 1.5 by the end of the year
as we’re pacing, okay. And that’s me looking
at where we are combined with the campaigns that
we’re putting in place, where I’ve seen them go before,
where I’ve put them before. So, anyways, some of that… Anyway, we’ll see what
happens, but that’s where I am and it’s kind of a different episode, but be cognizant of that. I never realized that I would be in the role that I am as far as a systems builder, you know what I mean? I’m a funnel builder,
now by necessity I’m also a systems builder, which has been great. So, anyways, hopefully it’s been helpful. I’ll talk to you guys later,
please rate this podcast and review it, that helps me like crazy. I think that my podcast is
one of the foremost podcasts on funnels, which is why
I’m trying to push it hard and prove to iTunes that it matters. So, please, please leave
a review and share. That means the world to me, and I’ll talk to you all
in the next episode, bye. (hip hop style music playing) Hey, thanks for listening, please remember to rate and subscribe. Want today’s best opt-in funnels for free? Get your free opt-in funnel pack by going to SalesFunnelBroker.com/FreeFunnels to kick start your opt-ins today. (hip hop style music continues)

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6 thoughts on “My Revenue Outpaced My Business – Episode 151

  1. Great content Stephen!
    I wish l have the same "problems" with shouting down funnles for overloading reasons, but l am in the MLM system which can handle overload situations.
    Just keep going with a value what you produce, and THANK YOU THANK YOU THANK YOU.
    Wish you all the best.
    Marko

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