This formula will make you so rich you'll question the meaning of money

Added: 2026-05-05

[00:00:00]This box contains a secret formula that will make you so rich you'll question the meaning of money. I've used this formula to sell nearly $500 million, including building two businesses with $200 million in sales each. It works in any market, in any business, in any economic environment. In fact, it works best when the world is falling apart.

[00:00:21]I'll tell you why shortly. So, here it is. So, here is the second part of this formula. It says LTV, which stands for lifetime value. In my first business that did $200 million in sales, we sold a training program that helped people build businesses with Amazon. Now, why did we grow so fast? How did we produce so many sales when so many people in that space, business education, selling online courses, only ever did a fraction of the sales that we did? It's because when affiliates promoted us, they made $2500 per sale. We gave them a 50% commission and we sold it for as much as $5,000.

[00:01:03]So, they made $2,500 for every single customer they sent our way. Compare that to some other options where people were selling memberships and subscriptions for maybe a hundred bucks a month. And say they paid affiliates that same 50% or $50 per month. That means it would take them four years, those affiliates, to make the same amount of money per customer that they made from us on day one. Our lifetime value for our customers and in turn for them as affiliates was way higher than anyone else. And that's why we were able to scale so fast. Today, Meta Ads, which is the parent company of Facebook and Instagram, is the number one place to get traffic for new businesses. The second is maybe influencers with Tik Tok, but that's a totally different game, but the same principle applies.

[00:01:50]Now, how do you get charged when you advertise on the biggest platform on the planet that is literally just now passing up Google and has half of the entire world's population on there? You get charged per 1,000 impressions. And it's an auction between you and all the other advertisers. So, who ends up winning that auction for those thousands of impressions, millions of impressions?

[00:02:13]It's the businesses that are willing to pay the most. The businesses that are willing to pay the most get all the traffic from Meta. So, if you make more money per customer, meaning you have the highest lifetime value or LTV, you can afford to spend the most to get traffic from places like Meta and even influencers who you end up in some cases either paying per post or paying as a portion of the sales that they send you.

[00:02:40]So, if you can make more money per customer, you can afford to spend the most and that means you get all of the traffic. So, here's the framework of how to maximize your lifetime value. Number one is you can sell a high margin, one-time product. This is what we did with our e-commerce training program.

[00:02:58]This is also what a company like Ferrari does. They don't sell as many cars as some of these other businesses like Ford and General Motors, but they make way more profit. And it's because they make so much per car that they sell. So you can sell a high margin one-time purchase product. Everyone loves to talk about subscription, which we'll talk about next. But all that really matters is who makes the highest lifetime value. If you can make all of that upfront on day one, like we've done and like Ferrari does and other businesses, that works fantastic, too. But number two is you sell a subscription product. So, in my company that we've done over $200 million in sales, my second business, which is a coffee company, a big part of the way that we've been able to grow is because it's a consumable product and we get people on subscription. So, that means we can acquire a customer upfront and maybe we lose money on day one, but because that person comes back and buys again and again and in some cases, you know, 40 plus% of our revenue is people on subscription, those sales are happening automatically. And so when that happens, our lifetime value from those customers just keeps climbing over time. So you can sell a high margin on one-time purchase product that works great or you can sell a subscription product which also works fantastic.

[00:04:13]Either one of those will get you a high lifetime value or number three is you can combine both of these models. So a company like Athletic Greens or AG1, which I think is worth about a billion dollars today, I think they do 600 million plus in sales, they've been able to combine both of these things. They sell a subscription product, which is in most cases most of their funnels, that's the only option available is to sign up for a subscription or at least to get the best deal. But they also sell it for a premium price. And that means their margins are very high. Last time I checked, they were charging $79 for one thing of their product. And I guarantee you that doesn't cost them more than $15 or so, even with all the ingredients and the packaging and the shipping and everything combined in there. So they're making high margins but also doing it on a subscription. That's how you build one of the best types of businesses. So with that, doesn't it mean that you should just always charge more for everything like some people say? Absolutely not.

[00:05:10]Imagine you are the CEO of Apple and you're selling iPhones. And if you want to increase earnings, how much should you charge for an iPhone? If you increase prices some, you'll make some more money. And it probably won't reduce the number of units that you sell. But if you increase prices too much, then you're going to hurt the number of units you sell and hurt overall profitability and decrease brand position. And so that's what brings us to the first part of this formula. So the full formula is conversion rate times lifetime value. So conversion rate is the number of people you turn into customers that you attract through various traffic sources. In most cases, people that land on a page where you can sell them something or capture a lead, what percent of those do you convert into actual customers? So, when I first learned to sell on Amazon, back then, nobody knew what they were doing.

[00:06:04]They were just feeding products from their e-commerce store. This was around 2010. I found out that I could easily rank number one or two for any product out there just by adding a little bit of a bonus. I would be selling some popular weight loss supplements from the Dr. R show. And if all I did was take my version of that same exact product and add a little ebook that went along with it, all of a sudden I converted higher than anybody else because my conversion rate was higher. That means I got more customers and I convinced more people to buy, which gave me more reviews, which allowed my conversion rate to go up even higher. So with conversion rate, there's a bit of a compounding effect. The higher you can get it, the more customers you get, the more proof, the more referrals, and everything else. and it kind of cascades into more and more sales. And so I want you to imagine two businesses that have both the same value per customer. Let's say it's a $100 per customer. Yet one business converts five out of every 100 people who visit the website into a customer. The other business converts one out of a hundred.

[00:07:06]Who is going to win this game? The one converts five times higher than the other one. And so even though it may have the exact same traffic cost, they may have the exact same value per customer, the one with the highest conversion rate is going to dominate.

[00:07:22]And so the way to accomplish this is to use this three-part framework. Number one is promise. And so you want a big benefit, usually placed in the headline, but if nothing else, spread out through the rest of your page. Tell people what's in it for them. A lot of times when I see people who can't convert customers, it's because they talk too much about themselves. They're not saying what's in it for the people potentially looking to buy. And you want to try to cover as many reasons as possible that are applicable to your product. Place them in your headline and place them throughout the page. So number one is promise. Number two is proof. I remember one time I attended a mastermind event and I saw this teeth whitening brand there and they were absolutely crushing it. And then I looked at their web page and all they did was have tons of customer testimonials, written testimonials, photo reviews, video reviews, celebrity reviews, media mentions, that was their entire page. There's actually very little good sales copy on there. So if you can offer an overwhelming amount of proof that your product can actually provide the promise and the benefits that you're making, then you will convert higher. So include as many testimonials as possible in as many media formats as possible. And also another form of proof are specific facts. And so this is where people will typically talk about features. But a feature is much more powerful if you talk in specific numbers. This could be the ingredients, how it's made, what you deliver, when you deliver it, how much of whatever you deliver, how much time is involved. All those specific things about your product increase the proof that it's actually going to provide the promise that you offer. Third is promotion. So you've made a big promise.

[00:09:00]You've backed up that your product can actually do what you say it's going to do. The last part is to close the sale.

[00:09:06]And you do that through a combination of a really attractive offer that makes them feel like they're getting far more than what they're paying for. So that could be the form of bonuses or a price discount. Also, your pricing is extremely important. So if you're selling a premium product, it's typically going to be more expensive than what everyone else offers. But that depends on your strategy. Then your scarcity. some reason for them to buy now because there's a good chance that if you've attracted them to your web page and if you don't close the sale now or at least get their information, they're never coming back. And so a typical conversion rate for a lot of businesses is somewhere between 1 and 5%. So that means 95% or more of people are not going to buy on day one. And there's a good chance they may never come back. So you need as many people as possible to buy on day one to increase your conversion rate which allows you to pay for the traffic to get people there in the first place. So you need some reason for people to buy now. Lastly, you need some strong guarantee which reduces the risk. You've made this big promise. You've offered proof. You're saying this thing is a good deal. The last thing potential buyers are wondering is what happens if this thing doesn't work for me or everything you've said is false. So you need some sort of risk reversal in the form of typically a 100% money back guarantee. So that forms the last component of this which is promotion.

[00:10:24]We've been able to use this exact same framework to scale a business from basically nothing to over $200 million in sales now. And this is our coffee company. And all we did was put all of these elements on a single page. The page doesn't even look pretty, but we have a big promise there. We've got tons of proof, an overwhelming amount of proof. in forms of every sort of testimonial type that we could possibly offer, every sort of media mention that we could possibly offer. And we always have a good promotion running, some sort of price discount for new customers.

[00:10:55]We've got a guarantee we offer, and scarcity as well. Those are all the components that we needed to build a business with hundreds of millions of dollars in sales. So, to wrap all this together, here is the nineword secret to scale any business. This combines your conversion rate and lifetime value. Here are the nine words. Make more money per visitor than all of your competitors.

[00:11:19]That's how you can scale any business in any market with any product to as big as you want. So you do this by getting your lifetime value as high as possible. Make as much money per customer either upfront or through the backend, ideally through subscription. They get your conversion rate as high as possible so that you turn as many visitors into buyers and you can afford to spend more on traffic than anyone else. And also, you're going to have to do a little bit of a balancing act because you could get your lifetime value extremely high by charging 10 times more for your product, but it may tank your conversion rate.

[00:11:52]You could also get your conversion rate extremely high by giving away your product for a dollar for free, but it's going to tank your lifetime value. So, that's why there's a bit of a nuance here, but your end goal is to get both as high as possible so you make more money per visitor than all of your competitors. So, this brings us to the reason most businesses get stuck. It's because their traffic and customer costs increase every single year, which is natural. Every once in a while, there's a short-term sort of loophole where a new traffic platform comes out, kind of like meta advertising, you know, over a decade ago, and costs are temporarily low, but over time, advertisers flood the platform and costs go up. And so, this happens in every market and it happens across all advertising platforms. So, traffic and customer costs tend to increase every single year. So when that happens to a business and they don't increase conversion rate and or lifetime value enough to compensate all they can do is decline and that's why they end up dying. So you need to design your business from the beginning with the right product either subscription or a high margin one-time purchase product or ideally both plus continually improve conversion rate and lifetime value. And that's exactly how we keep scaling our business by over 20% a year even though it costs us two and a half times more to acquire a customer now than when we started. It's because we keep increasing our lifetime value and conversion rate every single year at a greater rate than it costs to get traffic, which increases every single year. So, if you want more advice on scaling your business, subscribe to my channel and watch the video below