How To Scale Your Agency Without Adding Staff ( $100K/Mo)

what is going on everybody Nick here a few years back I scaled a Content writing company to 92k a month with 16 staff members then I scaled an automation business a 72k a month with two staff members and now I run a blended Automation and info product business that does over 100k a month solo so naturally I've learned quite a bit about how to scale a business without necessarily adding to the headcount and that's what I want to talk about in this video I want to give you guys a simple four-step framework you can use

to scale any digital business without having to hire more people in this video you're going to learn about Revenue cealing and how to maximize Revenue per staff member you're going to learn about productization including how to break down any deliverable into components and my personal approach for that I'm going to teach you automation how to use machines to do your work instead of people then we're going to talk a little bit about distribution or how to multiply your reach per unit time invested and lastly I'm going to run you through a few scalable business models

including how to pick ones that naturally let you grow without adding headcount if that sounds interesting to you guys stay tuned and let's get into it all right couple things I'm going to show you in this video I have a couple diagrams I have a slideshow I'm gonna walk you through it step by step but just before I get into it I have to add my usual disclaimer this is just what's worked for me I'm not necessarily trying to prescribe anything for you if I was a Discerning viewer of the nixar Cornucopia of YouTube content

I would take whatever makes sense to me and then discard the rest I'm not going to do any gatekeeping I'm just going to show you everything that you need in order to do the same that I did so how to scale your business without adding staff I put 100K a month here just because it's clickbait but let's get into it so first and foremost everybody thinks that you need to hire to grow uh but my secret sauce is that you don't the reason why is because we are quickly entering an era where if you properly

configure your tools and your business infrastructure those alone can do the work of dozens of people without you needing to hire anyone so you can absolutely scale your company without adding a headcount or by adding a very minimal amount of headcount in this video we're going to cover that four-step framework that shows you how to do it I'm going to cover uh a revenue ceiling a revenue per member first and then I'm going to get into how exactly to go about establishing this framework and then carrying it out but this is the same framework that

is currently being used by thousands of people myself included to build high margin High Revenue solo businesses usually in the past you can't have to pick one right either you were high revenue or you were uh low Revenue high margin I will now you can have both and there's no reason why not so this applies to any digital business if you're running a physical business it's a little bit more limited obviously because I don't know if you're some hfat guy uh it's going to be difficult to you know carry out the step-by-step process that I'm

laying out in this video I'm not necessarily saying that if you run a physical Services business or a physical product business that you can't Implement these I think you certainly can you're just going to have a harder time doing it and it's going to be a little bit less effective a concept that I want to cover just before we get into things is that software and artificial intelligence you can kind of treat these as Force multipliers these are very similar if you guys like think back to uh I don't know if you guys learned this

in high school I guess it depends on where you are but like the force multipliers in in engineering like a lever right a lever is a force multiplier or a screw is a force multiplier a wheel is uh in effort in essence some some type of Leverage well software and AI do the same thing except instead of it being in the physical world it's kind of in the virtual world and essentially they allow one person to provide the output of many people so your goal in scaling your business and implementing what I'm about to show

you is to increase the ceiling Revenue that a single person can manage what I mean by that is if a single person currently in your business can manage maybe $5,000 or so if you implement the tips I'm going to show you we'll be able to get that higher to maybe 25,000 ,000 50,000 100,000 in addition hiring people includes many hidden costs and risks that usually aren't talked about right you have tons of issues with hiring especially if you're looking to hire employees like onshore employees and especially if you are in places where legislation just just

makes that really difficult right I don't want to be super evil capitalist or anything like that but I'm sure most of the people watching this are business owners so uh you know I'm sure yall feel me when you know you have to deal with like certain probationary periods sometimes you deal with unions you have to deal with like termination pay you have to do onboarding uh there's a certain number of sick days you have to take you have to give to staff members obviously you have some base compensation rules and whatnot well the really cool

thing is software and machines they don't require any of that and Ne that ises your business infrastructure so there's near zero onboarding cost there's near zero training cost there's near zero legal costs right uh I mean aside from clicking a terms and service button and maybe some I don't know very unlikely disastrous things that occur with data realistically you don't have to do with 99.9% of the you have to deal with when hiring people and that's that's my inspiration behind this that's the inspiration behind the framework and why I'm running my business the way that

I am and then my last point is even if you do eventually have to hire why not just set your business up in such a way that enables you to scale as much as you can before you do so so that when somebody eventually does come in well guess what now you know you don't have to hire 20 people you can just hire one right you can pay a lot less money that person has hyper leverage you can do way more with it um this is more or less my mindset and the reason why I'm

telling this at the beginning of the video just so that we're all on the same page here I don't want anybody being like Nick what the hell why wouldn't you hire people why would you get a machine to do the work um well this is why right here okay so the very first and probably the most important concept that we have to learn in order for the Restless to make sense is the revenue per staff member I've talked about this before in my videos and I've called this Revenue per employee or rpe this is a

pretty standard metric in like business analysis basically these analysts and these Consultants come in and then they count your total revenue for the year usually and then the total number of employees at your company and they just divide the total revenue say million dollars by the total number of employees which is I don't know 100 and then they figure out the uh I don't know the revenue per staff member which is $110,000 $10,000 per year per staff member is and if your company is you know an rpe of that then obviously you're doing something wrong

unless you're at like some I guess startup and you're not making any money but you're fundraising or whatnot but I'm I'm I'm assuming none of you guys run startups here I'm assuming we're all just like bootstrapping agencies or service businesses so I'm taking this one step further and I'm calling this a revenue per staff member just because this reflects I think a little bit better the modern hiring environment we're not all hiring employees anymore we hire uh contractors sometimes we hire like uh I don't know like Flex workers sometimes we have vas and stuff like

that this is just a more comprehensive term that I'm just taking to mean like the total number of people in your business that you interact with on a regular basis um or sorry the revenue of your company divided by the total number of people that you interact with on a regular basis now if you're a solopreneur like me you can also think of this as how much economic value alone can I create right with just myself before I add anybody else to my business and this is important for me because I'm I'm always trying to

optimize this and this is where systems and tools artificial intelligence and the software approaches I'm going to talk about in a minute get into this is typically the way that most businesses work like most people will begin service businesses organically right let's say you start I don't know you start like doing some design you're a great designer you've worked at a bunch of other agencies or something you're like you know what I don't get paid enough of this goddamn company I'm going to Branch out on my own and I'm going to become my own designer

and make way more money so you're you're a specialist right naturally you're going to do the vast majority of the work yourself because that's sort of like your key value prop it's like hey I'm amazing at this and I'm going to deal with you personally and I'm going to take care of it fast I'm going to low turnaround times right this is sort of like the way that a freelancer um starts becoming an agency in scale So eventually you hit a point where you're juggling so much that you get diminishing returns on any additional time

that you spend so naturally you know you see a bunch of business gurus talking about this all the time they're like higher higher hire delegate delegate delegate you're like all right cool why don't I delegate my work then that's kind of The Next Step that I have to take in order to grow now if you think about it up until this point the amount of money that a single specialist can handle in a company is and this is a very high estimate here but maybe it's $15,000 or $20,000 per month like if you got your

together you already understand some of these systems you lay out your work in like an efficient way maybe at the high end you can make like 15 grand 20 grand a month and that's with like great products great services and that's also with you working yourself like a dog this is the definition of working for yourself being self-employed you know you're doing you're doing a ton arduously uh you're you're working some incredible hours so you're at 15 let's just say you're at $20,000 a month just for simplicity's purpose okay but then you hire somebody and

maybe you hire like some designer or something like help you out with some work well now what you've done is you've taken your Revenue per staff member which was previously you know that 15 $20,000 and you've divided it by two okay so now your RPS is half now the reason why you hired is logically you were like well I can only do $5 or $20,000 of work myself so maybe if I hire somebody else I'll be able to do 30 or $40,000 of work right but the unfortunate thing is you are rarely able to scale

to twice your size by hiring twice as many people and i' i' I'd go as far as to say that's almost like a rule of service businesses with every individual person you add and I'm going to show you guys this in a second but with every individual person you add your Revenue per staff member tends to go down and there are a couple reasons for that so you know think about it you scale your agency and now you're making $60,000 a month right you got five hires you got a couple designers maybe you have some

marketing guy to help you out maybe you have a salesperson and you know maybe a few more people and then you and you might be making $60,000 a month but just do the math at $60,000 a month if you divide that by the total number of people working in your company when other Revenue per staff member has gone down from uh you know what it was before let's say 15 or 20K to $112,000 which is I mean that's almost like half the RPS right so the goal here is obviously to maximize our RPS what's the

solution to do it and how can you do so and I have sort of like a two-pronged approach the first is is systems and the second is software and both systems and software have laid out intelligently will allow you to increase your Revenue ceiling and then you as an individual before you get to the point where you're thinking of hiring right instead of you hitting that camp of 15 20K a month you're making good money but you're being worked like a dog maybe you can make3 or $40,000 a month and then maybe instead of you

being work like a dog you can work at half capacity if I'm being honest this is what the vast majority of people that are probably watching my content right now want you want to have a super high income without necessarily having to compromise in your lifestyle too much you but you also want to be good at what you do and you want to be able to provide like a great service right you want to be able to provide security for your family you want to be able to I don't know get the latest Apple watch

or whatever the hell uh but you know you don't necessarily you don't necessarily want to do so um strung out with 20 employees that you're managing you know under an incredible amount of stress stress so you know the solar preneur lifestyle for me uh is is super high Roi personally and you know I I've implemented systems that I'm about to show you that have enabled me to do this okay so just before we proceed let me just like kind of let let me just show you what the I guess relationship looks like between the size

of an agency and then your Revenue per staff member generally speaking so let's pretend that you are starting at the start line here your Revenue per staff member is pretty high okay you are I don't know can I draw on this puppy oh hell yeah I can draw on this puppy I don't like how this like automatically turns into a circle though all right whatever um anyway so at the very top here your Revenue per staff memb is pretty big right the second that you make that first hire it starts plummeting the reason why it

starts plummeting is well now that you have another person you can't contain all of the work in your head anymore there's some information that you know that your staff member doesn't know and so you need to communicate that well guess what any time spent communicating is time spent not doing the thing and so you started ating communication costs that's number one number two because of these communication costs and because of miscommunications you substantially improve or increase rather uh the number of uh mistakes that you're making okay you're no longer uh you know like the sole

service professional this person might not know everything that you know right so now you have some mistakes in place in addition one thing that I didn't mention here was you also have to do training right if you want this person to learn your process as well as you know it or be able to replicate it to some some reasonable percentage maybe 80% well you need to train them and any time spent training them is time not spent doing the work right so uh in addition to that you have like some group think in larger companies

larger companies tend to be able to make less ideal decisions simply because of a human bias known as group think where we tend to agree with decisions for appearance more so than for uh you know correctness um and then you know there are also some social issues sometimes Betty at the front desk hates Stephanie in the back or some or Tom is angry at Jerry uh anyway the point that I'm making is every single additional staff member you hire you're going to have some issues right and your RPS is going to go down because less

a smaller fraction of the total time of every single person in total mental effort is going to be spent actually delivering the service that provides you money so I say that sort of Platos here well that's just because you know the marginal additional person at the at an agency size of I don't know like 100 plus um you know the effect in your RPS becomes really really small but I don't know maybe it still goes down just a tiny bit um and you can imagine this sort of just proceeding for Infinity so I I show

that to you just so you understand the factors of play here and so you understand why we should get away from hiring people being our first solution to you know constraint issues and we should focus instead on this four-step framework I'm going to start us off with step number one which is productizing what you can and then noting what you can we're going to take the stuff that you can we're going to move to the next step I've added some Revenue sealing estimates here these are totally rough I mean you know these are just based

off of my uh experience in agency genes I've worked with obviously several designate well I guess now over a thousand agencies if you can all my communities so I I tend to know what the revenue ceilings of agencies are are sort of intuitively um I'm saying 20 to $30,000 a month per person if you productize your operations effectively and I also I'm going to provide a quick example of businesses that I think have done a really good job of this um and the the business here that I'm going to talk about is Fat Joe so

these guys are like an SEO platform they provide tons of services I mean if we just go down here you guys will see link building digital PR SEO content writing design Nvidia blogger Outreach PR campaigns Niche edits um I'm friends with the with the founder and essentially the reason I bring this up is because these guys have done a fantastic job at at at building a business around this principle that I'm about to talk about which is productization if you want you know uh uh link Building Services or SEO services from them they know in

advance exactly what margin exactly what percentage they're going to make on this they have checklists over checklists of every step involved in that link building process and they could basically at this point hand off that job to a monkey and it's so granular and so step by step that that monkey would still probably do a pretty reasonable job I'm not I'm not saying they staff members or monkeys anything I'm just saying that they're very very good at designing the infrastructure behind a productized business so um productization if I just zoom out a little bit is

just breaking down what your business does into concrete deliverables okay deliverables are what the customer or client sees not necessarily what goes into it but just like the actual end result um and then what you do is you take these deliverables then you break those deliverables a little bit further down into the steps needed to produce them and then once you have those steps then you can break them further down into little checklist items once you have those checklist items you can break them further down into inputs and outputs so here's a quick example of

how you might producti a simple marketing Services Company okay let's say you run a runof-the-mill marketing agency you provide PDFs uh uh I don't know you provide like PPC campaigns uh you provide like marketing General like a local marketing Services you provide some type of like SEO anyway uh what you do is you take those services and you break them down in specific deliverables what is it exactly that the customer is getting they're getting a certain number of links probably right just as the fcho example showed a minute ago you're probably giving them some reports

you're probably giving them maybe like a website you're spinning up for them maybe you're giving them some PPC campaigns in their Google ads manager right um basically take all of the services that you're providing and then break them down into their specific deliverables the products that the customer is basically buying from you now once you have these Del Ables deconstruct each deliverable into its components quick example here is let's say PPC campaign is one of your deliverables this is in one of your packages that you sell well if you think about it logically like what

is a PPC campaign a PPC campaign is where you take add copy and then add creative and then you upload it to I don't know Google ads manager or something like that that's typically like like that's the component that goes into the service that you're providing right so if we just if we just try and get a microscope and we Zoom way in on that product what goes into it are let's say three ad creatives and three ad copy variants hypothetically right however many ad creatives or ad copy variants they are what you do is

you repeat this process until you have all of the parts of the entire service Suite that you're providing so if you think about it you know your ad copy right that deliverable or that component might have a couple components in and of itself maybe add creative or sorry add copy is composed of a headline and then it's composed of some body text right um and each of these may have some character limits so if you're doing Google maybe it's different than Facebook right you have to get very granular here in order to productize properly but

the point is you are deconstructing what makes your business or your service tick once you've defined all of these explicitly what you do is you create a step-by-step guide or an sop standard operating procedure on how you would Define or how you would deliver this thing assuming that you had no knowledge assuming that you were basically just starting at the at the very start line the reason why you do it this way well it's TW fold I I'll talk about one of the reasons why which is because you can start automating it um but the

reason why you do it this way is by assuming zero knowledge you start thinking and explicitly defining all the knowledge that goes into this thing and the second that you know that you start you basically lay out all the resources that you need uh to automate uh you know to to delegate more effectively to basically turn this whole thing on autopilot now is there something that you can't productize because sometimes there are things that you can't productize if something does require an incredible amount of knowhow if it's some deep business consultation or something like that

if it requires a laborious number of personal hours sometimes you know you can't actually productize a service and that's okay all I want you to do is just make a note of what that is then move on to the next step so if you're watching this right now like I want you to get as much value out of what I'm talking about as humanly possible so if you run a business I highly encourage you to actually pause the video and at least just give it 30 seconds to a minute of thought run through the services

that you're providing in your company and just say h okay so I do provide three or four Services how do I break those down into deliverables well I guess I provide I don't know SEO services so H that includes link building and then that includes some marketing report and then that includes some website cro what what what do each of those include I just want you to do this thought experiment because I was going to make this next step a lot more valuable if you don't yet run an agency or anything like that that's okay

we can just move on right away but just keep this in mind as you are designing your products or Services it's going to make the rest of your life really easy like I wish I did this with my first couple agencies I would have crushed it and I would had to spend way less time and energy in it so step two is we have all of those producti you know steps right and then we have a couple things that we can't step two is well now we can automate all of those things that have those

step-by-step guides and that are very clearly definable um and that you can do with zero knowledge and the things that we can't we're going to optimize productization by itself is already massive leverage but if you automate steps within the product and you don't have to automate all of it you can just automate specific steps right like in our ad copy example which I'm going to talk about uh maybe you can't automate the creative because your creative is just it's just a little too high quality for machines right now but you can certainly automate your ad

copy right the only reason why you know that you can do do that is because you've since broken everything down into very specific deliverables um but now you know if you think about it if ad copies half the work ad creatives half the work you just automated half of that project right you've essentially doubled The Leverage you've doubled the revenue per employee or Revenue per staff member by automating 50% of that deliverable so I talk here about a revenue ceiling um at this point I'm saying it's about $50 to $100,000 per month per person a

good example of this is design Joy now design Joy doesn't just automate everything I mean this is an actual designer but the way that he automates things and I think Brett makes like 100 to 140k a month so probably a little bit more money than I do um and he's a total solopreneur as well the way that he does things is he his automation is templates so he has a massive library of I imagine hundreds of highquality templates of every conceivable variation and when a client makes a request for a new design he thinks to

himself hm what template is closest to what the client wants you know I've already spent all the time and effort building these templates their design is really clean the spacing is perfect I don't have to like ramp the freaking wheel here so let me just pick something that's really close then he picks a really really high quality template and the thing about this templating feature is the template is 80% of the way there right so that means that the distance that Brett has to travel between 80% and 100% that's just 20% if you think about

it 100% divided by 20% that's 5x leverage so he just increased his revenue or his uh his Revenue per staff or his leverage by five times by using templates so you don't necessarily have to automate things in the traditional term I know a lot of my viewers are probably automation agencies or automation Freelancers uh but you know understanding uh the the principles here which is just leverage um you know goes a goes a long way so anywh who uh this is Brett's business as I mentioned he does a ton of money and the guy's pretty

funny to follow on Twitter although I think recently he's gotten some spats which I may have had to temporarily mute him for but uh you can make a fair amount of money and your Revenue ceiling can be pretty high if you follow what I'm about to show you so here's another example of how to eyes or sorry how to automate the product eyes marketing services that we just generated in the previous step number one is we're going to take all the step-by-step guides you created before and the next thing is we're just going to ask

ourself can a machine do 80% or more of this if properly instructed my rule is 80% or more I never try to do 100% because realistically machines can very rarely do 100% of your job right now they're quickly getting to the point where they can do 100% of small little things and eventually we'll piece those small little things together and get the big thing but right now you know 80% is sufficient for me and it's personally what I use to make you know over 100K per month so if it's good enough to make 100K per

month you want to make 100K per month then odds are is probably good enough for you now if you're like most digital businesses the answer is yes you can do a ton at that 80% Mark um using our ad example you can totally automate the production of copy you can totally automate the production of headlines of body text you can automate the production of creatives at this point super easily whether it's through templating features or whether it's through uh I don't know like you you you have mid Journey or something spit out some beautiful looking

sexy cool gradient that's branded right or maybe some assets maybe you create your own uh uh vectors or svgs or something the technology exists to do literally everything that I'm talking about here there might be somebody that's watching this video right now that runs a marketing agency that thinks wait a second I could automate literally 100% of this and then takes this and then uses it to build a product IED service then starts making a million dollars a month within a few months like the technology here is entirely is entirely at the point where you

can automate the vast majority of it now it's also Poss possible that you know maybe you run a different service or something that's just a little bit more involved maybe because you're doing link building uh part of Link building involves the creation of a bunch of personal connections and maybe you need to have somebody managing your inbox or something and even if you use AI to draft up the responses there still technically needs to be a person there or whatever that's fine and that's why we want 80% rather than 100% maybe instead of doing the

whole thing they just pre-draft your messaging or maybe they do like uh like like like an RD like a rough draft of your creative or maybe they send the first two or three emails in a sequence to your warm Network every time you get a new link building opportunity that you want to you know um um rank somebody on all of the stuff is still leverage the point that I'm making is just ask yourself how much time can I save if I construct the service a little bit differently than what I'm doing right now um

you know if I look at all of these services with a fine- toothed comb if I peer through every single one how much further and how much more efficiently can I get and that's really what the step is for um and if a step is not automatable then just ask yourself how you might optimize it like for instance um you know I provide consultations and my consultations can be anywhere from like 15 minutes all the way up to an hour or so now I have been trying to reconstruct my consultations to take me less time

and to be a lot more amendable for my customers and my clients because you know my calendar's starting to fill up um things are getting a little bit tougher I think on on both ends so I've started asking myself H is there a way that I Could reconstruct my consultations the other day I found a guy called Kristoff hman I don't know how to say his name who has a completely new take on consultations and I think this is a very good way for me to illustrate how even if you can't fully automate something you

can streamline the hell out of it what this guy does is you know he's some Advanced Tax professional who I found when I was looking for some tax Consulting on my own what he does is he gives people consultations through voice messages what you do is you book a consultation via one of these purchase buttons then you send this guy Kristoff a message on Telegram and then you send him all of your questions in writing you can ask questions about all of these and the idea is you know if you really need help but don't

have the financial resources to book a consultation for €2,000 or something you can get 80% of the value there with his voice message package where he just reads your question and then answers it for you via some sort of voicemail so you know like this is a great example of of a semi-product IED service obviously it still takes Kristoff's time to like take the phone and then and say it but think about all the problems that he eliminates here he completely eliminates uh time synchronicity like having to be in the same in the same at

the same time calling a person both of you guys having to be there I mean he could go downstairs and walk to his car while answering a voice message and make 500 EUR right in I don't know how many minutes probably five or 10 minutes The Leverage on this is crazy sure this is still requiring his time but how much more time does it require to sit down and have that full hourong consultation versus what he's doing here now I should note that he also provides full hourlong consultations but you know these voice message packages

with I don't know extended voice message package for 800 bucks uh ultimate voice message package for 9.97 and so on and so forth these are novel takes on something that people a lot of people just think that you cannot productize Well turns that you can um so I want you to take an approach similar to what Kristoff hurman did here where he asked himself hm you know I'm suffering from these problems this that I'm providing makes me money but isn't really scalable how could I improve my Revenue per staff member if I'm doing this solo

right what if I do Messengers you know maybe then I can 5x my leverage and then I can make five times more and instead of me being stuck at 20 to 30k a month now I can go between 50 to 100K per month all right the third step that I'm going to talk about here is building automated Distribution Systems and to me this is the step that I'm currently on you know I've followed all of these all of these steps myself right I productized then I automated now I'm sort of building automated distributions tests myself

and then eventually I'll do that fourth one as well um but for me this is this is hyper relevant because this is what I'm doing and it's also one of the highest leverage things that you can do um just look at the revenue multiples here right I think a single person can easily get to 100 to 250k per month a good example of the uh person that's doing this right now is Justin Welsh he is leveraging the hell out of automated Distribution Systems if you don't know what that means I'll cover it in a sec

um in order to sell I think he runs like a like a $2 million maybe a three or4 million doar a year business now I'm completely solo so I think it's somewhere around the 250 C month mark another example is obviously me um with my automated two of me on the screen simultaneously that's a little too much um another good example this is me with like my automated distribution through my YouTube and so on and so forth so the value in automated Distribution Systems is like if you don't know what distribution is stick a step

back distribution is your ability to put your product or service in front of other people so in a modern digital business if you want to scale your distribution without necessarily adding staff that means one of two things the first is Outreach systems so like automated cold Outreach where you distribute to hundreds of thousands of people per day with seemingly customized me messages without having to individually go through look the person up send them an email right um the value in this is whether you connect with 100 or 10,000 people your time investment is going to

be the same this is sort of option one and this is something I talk about a lot on my channel but if you think about it a few months ago when I started my YouTube in Earnest I started posting all the time what I was really doing was I was doing number two which is where I was creating content like YouTube videos SEO articles and that sort of thing that do the same thing that cold Outreach does it's just they allow me to do it completely on autopilot which in my opinion is a little bit

higher leverage now so you kind of have two choices you could do content systems or you could do Outreach the point is though any automated distribution system has value because the amount of time it takes to connect to one person or a thousand people is approximately the same like if I made this video and I've just been shouting to the void for the last half an hour or something like that and a single person saw it it would not take me any additional time if instead I had gone viral and 10 million people had saw

it right my my my inputs are the same the outputs are completely variable and they can scale infinitely until all8 billion people um you know stare me deep in the eyes and listen to me Yap so yeah the point that I'm making is if you really want to grow substantially bigger than probably what most people would consider a high income which is somewhere between like 30 to maybe $50,000 a month if you want to grow even bigger than that you basically have to make use of automated Distribution Systems of some kind um those automated Distribution

Systems might also be stuff like uh like like ads right I mean I talk here about content but you can also think of this like advertising uh the downside of that is although it is an automated distribution system you obviously have to make some Arbitrage or margin on the on the people that click through your ad and then convert to your offer versus the amount of money you're paying per click but you know you can think of it that way as well same sort of idea with cold Outreach right you are paying a certain amount

for the mailboxes you're paying a certain amount for the leads the idea is you know arbitraging uh you know organic content is a little bit different because a lot of the time your investment is not necessarily money it's more so just the time uh and the knowhow um and you know that's that's what I've chosen to do here but you can easily scale to $100,000 to $250,000 per month per person and I firmly believe that like the next solo priner wave here is or the next wave really in business you know we had Indie hacking

for a little while we had like build and public is going to be a solar printer wave of people making over six figure monthly revenues um through approaches like what I've talked about here it's going to be people that have productized their business businesses like I have people that have automated what they can and optimized what they haven't been able to and then people that build automated Distribution Systems that sort of just sell for them you know while they sleep like I will wake up a lot of the time to like stripe notifications saying people

have purchased my product or service um you're very unlikely to get that without some sort of automated Outreach system or some sort of content or advertising funnel all right so this next step here I'm keeping purposefully vague because I have yet to get there and I don't consult with many people at this level myself but it's purposefully picking a scalable business model I know that you're probably thinking Nick why the hell are you putting this at the end as opposed to at the beginning and the reason why is because don't put the cart before the

horse if that makes sense don't you know forget what you're doing this for odds are if you want to run a business and you're watching my content to help you do so you're doing it because you don't want to build the next Uber or necessarily fire up the next rocket ship SpaceX competitor to get to Uranus or something I could have picked Mars I picked Uranus uh you know you just you again again you want a sufficient amount of security you want to be able to uh you know enjoy various luxuries of life you want

not to have to worry about like uh various inflation numbers or world events or anything like that and so if you if you started by picking a scalable business model the likelihood that you actually hit that level of wealth is a lot lower than if you pick something like a service agency um simply because there's a trade-off all the time and I think this is a good opportunity for me to whip open the Whimsical the tradeoff is basically you know if this is our little thing um scalability and short-term Revenue are both at odds so

if you pick a business model that allows you to scale very big it will likely be more difficult for you to make short-term Revenue as a result let me reconstruct this and make this sideways instead and then let's put short-term Revenue over here and then scalability over here and let's just look at some candidate business models okay uh one candidate business model um that maximizes your short-term Revenue might be what we're doing here like freelancing you know agencies is another one right probably somewhere right around here um some type of like B2B managed Service uh

you know as as as we scale obviously things change a little bit from B2B managed service maybe go to like B2B High touch SAS maybe after B2B High touch SAS we go like low touch SAS and then maybe you know all the way on the right hand side we have some sort of like actually I think low touch sass an info product or probably pretty similar maybe info products actually a little bit um lower than than low touch SAS so this is where like you're I don't know and then uh finally actually let me do

one more uh we'll do sort of like paas that stands for platform as a service this is like basically Uber and whatnot so you know if I just move this around so that it's a little bit prettier you can see on the left hand side here if all you want to do is you want to make money today and you want to make $10,000 as quickly as humanly possible you know starting with the next Uber is not going to help you accomplish that mission why because if you want to build a platform obviously you need

to invest a ton of time energy and infrastructure you got to hire Engineers or you have to be a fantastic engineer you have to build something of worth you have to build distribution channels you have to have distribution channels you know you're not making a ton of money per deal I mean even with like uber what what what are the margins on a single deal if I try and take an Uber to downtown how much is Uber really Prof profiting from that probably a few bucks right versus let's say a freelance deal where you can

sign like a three four $5,000 deal like literally in your first day freelancing you know if you if you play your cards right so same thing with agencies right one of the reasons why I came into freelancing and agencies is because they are the fastest way to get short-term revenue and then if you think about it logically right if I were to take a freelancing or agency outfit and then if I were to productize it automate it optimize it automate the distribution of it I basically now now have like leveraged agency and a leveraged agency

I would wager you know has all of the benefits of the short-term Revenue um on the left- hand side but also a lot of the benefits of the scalability of like the high touch SAS info products low touch SAS and platforms as a service so you know as you go to the right of this graph you make less money up front and then you make more money on total now the reason why that's important is because you know you kind of have to know what you want um you know if if you wanted to start

that rocket company or something like that well you know you sort of have to accept the fact that you're probably not going to be making a lot of money in the short term um so I guess this is my long ass justification for why I put this thing last and I didn't really need to do that but uh whatever so if you've exhausted everything in this list and you're still not happy with your Revenue ceiling let's say you've been doing this uh for a few years and you're making like $1,000 a month as a solar

preneur similar level to me and you're like you know I'm still not really happy with how much money I'm making there are certain business models that inherently let you scale further the con is that they take way more in the way of resources set up and if Mis calibrate you can waste it all how many horror stories have you heard of the next big thing that's completely tanked and lost investors hundreds of millions of dollars they the Silicon Valley graveyard that's the trade-off right scalability versus short-term Revenue so I have some examples here of scalable

things information products tend to be scalable um software products tend to be scalable affiliate advertising is one thing that I didn't really touch on that tends to be scalable as well although you do have to know what you're doing and you do have to be open to some level of risk typically you know if you're doing affiliate you're either organically ranking pages on Google or some other search engine and then having some percentage of the revenue that you generate per lead or you are creating some type of paid advertising that refers somebody to a funnel

um or maybe you make the funnel yourself and then you know your your whole Gambit is okay like is the amount of money I spent to acquire one new customer times whatever the small percentages that I get is that more than the amount of sorry is that less than the amount of money that I made off of that deal essentially so you know these are these are purposefully scalable business models that you know people pick when like they're trying to I don't know disrupt an industry or whatnot um but I put these here at the

end just because that is sort of The Next Step if you get to maybe $250,000 a month per person $300,000 a month per person and you start plateauing and you're like well you know I need to hire if you are dead set on being a solar preneur you can absolutely uh start a business either Solo or with a Founder um you know that makes substantially more money than that I forget exactly how much money I think it was Tinder um you know that the dating app that had like nine you uh software Engineers or something

and I think they had like over a billion dollar valuation like if you think about the leverage on each of those people that's a ton right and that's really what I'm getting at here with these scalable business models so in short we have four main Concepts that I want you guys to think deeply about we have uh the revenue ceiling but then we have thinking about your business in terms of economic productivity you have productizing you have automating and then you have Distributing um and at the end there you know assuming that you are unhappy

with being able to make $250,000 per month per person with extraordinarily High margins you lunatic then you also have the ability to Pivot and pick a more scalable business model and there's nothing necessarily wrong with that but if you want to do that I'd highly encourage you guys to at least get your bag first all right hope you guys appreciated the video had a lot of fun putting it together if anybody has any questions about scaling their own business how to do so without adding headcount just leave a comment down below I'm more than happy

to get back to you if you guys have any ideas for future videos or any questions about any of the content that I've created so far then please let me know I want to help and I want to engage with all yall otherwise if you could do me a big solid if you haven't subscribed to my channel already and you're still here odds are you probably like it or you hate me so much you're just waiting for me to screw up that's fine too uh subscribe to my channel like the video for the algo and

I'll catch all y'all in the next one thank you very much and have a lovely rest of the day