Building a Perpetual Business Machine

Learn the framework that will help you build your business.  ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ Issue #39 | May 23, 2023 Hey, it's Pat! 👋 Setting up a business so it grows perpetually — on its own — is the dream. And guess what? It is possible! I actually know a few people who have created near perfect flywheels in their business, and I’ll share a couple examples with you in this email. It’s not easy, but these examples can provide a framework and model to work toward as you build your business. You might be closer than you think. Let’s get unstuck. QUOTE OF THE WEEK "Chaos in the world brings uneasiness, but it also allows the opportunity for creativity and growth." – Tom Barrett THE STORY One of my business friends has a nice little flywheel happening in his business. Here’s how it works: - People subscribe to his email list. - Some people on his email list buy products. - He takes about 50 percent of the profits each month and buys ads to grow his email list. Naturally, a percentage of those new subscribers from ads buy his product, generating more revenue. Along the way, he’s split-testing and optimizing everything from click-through rates to conversions. Over time, the flywheel seems to spin faster and faster. Here’s some high-level data that he gave me permission to share with you here in this email. (However, he asked me not to share his name, which I totally understand.) In 2020: - Average monthly email list growth: 856 people - Average monthly sales from email list: $5,806 - Average monthly spend to grow email list: $2,500 - Average month profit from sales: $3,306 He offers a $299 product with some upsales, and his conversion rate from email is about 2 percent after a two-week long nurture sequence. This means that each month he only needs eight or nine sales to break even from his ad spend. All the while, his email list continues to grow, which helps him even further. Recently (starting in mid 2022) he’s been selling ad spots in his email list to sponsors and advertisers. Here’s his data from this year (so far): In 2023: - Average monthly email list growth: 2,523 - Average monthly sales from email list: $17,200 - Average monthly spend to grow email list: $10,000 - Average monthly profit from sales: $7,200 His ad cost has gone up since 2020, but he’s still profitable, even more so due to some better upsell processes he’s included. More than that, his email list is now over 25,000 strong, which allows him to earn $5k per month on sponsor spots in his weekly newsletter — meaning that he’s profiting about $12,200 per month just from his email list. And that number should go up as more people join his list. This flywheel is driven primarily by email. However, my favorite type of flywheel exists in another place: communities. When you build a community in your niche, one with both a subscription model and an amazing experience to go along with it, a magic flywheel can happen: - People join your community. - People love your community. - People share your community. - More people join your community. This is the flywheel we’re experiencing right now inside of SPI with the All-Access Pass and SPI Pro. It’s been so successful, people have asked us how we do it. In fact, the platform we use to run our community, Circle, uses our communities as examples all the time in their training! CALL TO ACTION Your call to action is two-fold today: First, find your flywheel. You might have one similar to my buddy’s example, or one that just requires some reinvesting to make it grow. Second, (and a big announcement related to what I just said about community) I’m excited to announce that we just launched a brand new online course inside our All-Access Pass. It’s called the Community Business Blueprint, and Circle has partnered with us to create it! If you’re in the All-Access Pass already, be sure to RSVP for the training with our team and other students! If you’re not in All-Access, then sign up now to get access to all our courses, including this new one. If you sign up by May 25th, you’ll be able to join our accelerator for the Community Business Blueprint, which means you can take our new course alongside other students and get guidance through the entire experience by SPI teachers. ​[Click here to sign up for the All-Access Pass and get access to the Community Business Blueprint Accelerator, which starts on May 25th!](=)​ And yes, you also get access to all the other courses in our library inside All-Access Pass as well, from podcasting to affiliate marketing, email marketing, webinars, YouTube, and more! Either way, a huge shout out to my friend for inspiring this email (he’s on the list so I know he’s reading this 😂). Good luck finding your flywheel! And if you do decide to build your own community, I hope to see you in the upcoming Community Business Blueprint Accelerator! SPONSORED BY CONVERTKIT Unlock the Potential of Your Business: Sponsor the Unstuck Newsletter Are you looking to reach a motivated audience of entrepreneurs and business owners? Look no further than the Unstuck newsletter, the trusted learning and development ecosystem for online entrepreneurs. With over 124,000 subscribers and an average open rate of 37%, your message is sure to be seen and heard by a highly-engaged community. As a sponsor of Unstuck, you’ll have the opportunity to showcase your brand and products to a targeted audience looking to take their business to the next level. Whether you’re a startup looking to generate buzz, or an established brand seeking to increase sales, Unstuck provides a unique platform to connect with an engaged community of entrepreneurs. With a variety of sponsorship opportunities available, from banner ads to sponsored content, Unstuck can help you tailor your message to meet your specific goals. And with the credibility and trust that comes with being associated with the Smart Passive Income brand, you can be sure your message will resonate with this community of online entrepreneurs. Don’t miss out on this opportunity to unlock the potential of your business. [Sponsor This Newsletter]() SPI NEWS AND EVENTS We work hard at SPI to remain unstuck and consistently provide you with the best ways to support your business. Check it out: How to Launch a Community Webinar Event is Today! We’ll cover a step-by-step approach to launching a community for the first time and how to work with a small group to build your community’s foundation. [Register even if you can’t make it](=) — you’ll get a replay sent to you after the event. See what's coming up at SPI... There are a ton of free and community-exclusive events on the horizon at SPI. We’re here to help you learn new skills and accelerate your business growth. [Click here]( to see what’s upcoming. Subscribe to The Smart Passive Income Podcast! If you’re not building a community around your brand, you risk getting left behind. [Find out more about the reasoning]( behind this hot take with Chris Miles and Danielle Hollembaek from Money Ripples. This is a great episode for anyone looking to build a community-powered business, with powerful takeaways on guiding a social network audience to your membership site, time management, creating superfans, and more! DAD JOKE OF THE WEEK Describe failure in two words. ​ … I can’t. Did a cool person forward you this email? [Sign up here for free](. Want to reach over 125,000 entrepreneurs? [Become a sponsor](. 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