How to Make $1M a Year: A Simple Math behind a 7-Figure Revenue Model

Simple Math Behind Making $1,000,000 in Revenue

Raise your hand if you ever had a goal to make $1,000,000 a year. Does it still feel like a farfetched goal?

Many online marketing gurus teach tell us: publish content, share it on social media, create interesting offers, grow our lists, and, magically, see our business grow to 7 figures a year.

Well, I am a huge believer in the power of content, making the right offers, and creating funnels. If put into the system and applied consistently, content + funnels + traffic will result in business success.

But what these marketing gurus are not telling us is that it takes more than a marketing system.

Yes, $1,000,000 a year is a huge number.

Success is NOT easy to achieve, and it most certainly does NOT happen overnight. Unless Elon Musk mentions your product and you see your stock price grow exponentially.

But I digress.

Many established businesses are making $1,000,000 a year and more.

I worked with several businesses that grew from zero to multi-million dollar revenue streams in just a few years.

What I learned is that making $1,000,000 online requires the right revenue model and streamlined marketing strategy.

Rather than feeling overwhelmed by a far-fetched goal, go through these steps to create a plan that will get you there over time.

1 – Reverse-Engineer Your Revenue Goal and Pricing Model

Making $1,000,000 online is simply a numbers game.

Here is the simplest formula:

Sell widgets for $1 apiece to 1,000,000 customers and you will have $1,000,000 in revenue

Sounds simple?

But you also have to find 1,000,000 people to buy these widgets.

Your costs may be too high and it may take too long.

Let’s imagine your widgets are $100 apiece, this means that you will now need to sell 100,000 widgets to make a $1M.

Better than 1,000,000 people but still quite a lot!

What if you sold widgets at $1,000 or $10,000 apiece?

Do you see what am I getting at?

Now, let’s make things even more interesting.

What if you were selling a monthly subscription service to your widgets?

If you sell your widgets for $16.7/mo, you would need to have roughly 5,000 subscribers

$16.7 x 5,000 x 12 = 1,002,000

And if you increase your price to $84/mo, you will just need 1,000 people.

Want to have even fewer subscribers? Offer 250 people a $334/mo subscription and you will be all set.

The simple math behind $1,000,000 a year business


If you are not ready for a $1,000,000 what about 25 people buying a monthly $334 plan from you?

$334 x 25 x 12 = $100,2000

That’s 6-figure income from figuring out a high-value relatively low-cost product and selling it to 25 people!

Before you start selling anything, play with your numbers.

2 – Do a Reality-Check of Your Numbers

If you are selling a $99/mo product, it means that you may have to acquire and maintain 950+ customers every month.

Next questions to ask:

  • What would it take to acquire 950 customers? What is the cost, how do I market? How much time would it take?
  • Can my business support and provide quality service to 950 customers at the same time?
  • What processes and systems do I need to put in place to support them?
  • How large would your team need to be?

If you are selling membership access to your digital products or in the eCommerce business, then the support cost goes down significantly.

Your main concern becomes the cost of acquiring and retaining the 950-customers.

As a rule, subscribers stay with the service for 4-6 months. This means that over the year, you will need to acquire at least 1,900 customers.

(950 x 6 month) x 2

However, if you are a freelancer, an agency, or a Done-For-You services provider, supporting that many customers every month may not be an option.

This is on top of acquiring and retaining them!

An average freelancer can provide quality support to no more than 10 customers at the same time.

If you offer services at $99/mo, then the most revenue you can generate would be $11,000 a year

$99 x 10 x 12 = $11,000

At $999/mo your revenue goal looks much more promising and manageable.

$999 x 10 x 12 = $119,880

You can increase the price and reduce the number of customers to stay at the same revenue goal OR increase the price and keep the customers at the same level to make more.

Simple Math Behind Making $1,000,000 in Revenue
Do a Gut Check of Your Revenue Projections

3 – Diversify your Revenue Model

One of the biggest issues for many businesses is ebbs and flows in revenue.

If you are in eCommerce, then the Holiday season is your biggest revenue maker.

Your market, package, ship, respond to customers like mad.

Then comes January and everything stops!

You have to come up with crazy promotions just to sell a few pieces.

It is quite the opposite if you are a coach or consultant.

Many people “check out” during the summer months and Holidays. They rush to hire you again to help with their New Year resolutions.

But then you are so busy serving your clients that you do not have time to market your services.

There are three key strategies for keeping a stable cash flow:

1 – Creating an Automated Lead Generation System

An automated Lead Generation System will continue bringing potential customers into your business even when you are busy.

If you do not already have a lead-generation system that runs on auto-pilot, you may find yourself scrambling once things slow down.

2 – Combining 2-3 different revenue models to combat a slow time.

The secret is in adding another revenue stream that can help support your business during slow times.

Brainstorm different types of offers:

  • Physical (products you can ship, print books, t-shirts, items)
  • Digital (downloads, checklists, templates)
  • Spoken/Written work (ebooks, audiobooks, training)

Look at different options for making money online:

If you do not have a physical product, learn more about dropshipping.

3 – Create Recurring Monthly Revenue Opportunities

At the foundation of every successful online business is recurring monthly revenue. This revenue can come from subscriptions, affiliate sales, monthly contracts.

If you are a coach who has a large online following, consider offering a monthly membership to your digital courses and ebooks, look into affiliate programs.


Making $1,000,000 is not easy, but it is more realistic than it seems. You start by reverse-engineering your revenue goal and pricing. Then do a reality check of your numbers – can you handle 500 customers every month? Lastly, wrap this all into a business model with several complementary revenue streams.




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