The Two Chasms of Building a Real Business

In the world of launching and establishing a business, there are two chasms that must be crossed: The $40,000 chasm and the $4 million chasm.The $4 million chasm is the one that separates the one-man operation from the systematic company. When you’re right at that point, you’ve got enough things going on that you desperately need systems in place to keep it going, but you don’t have quite enough resources to put those systems in place. So it’s a major plate-spinning challenge.

That chasm is a management issue. “E-Myth book” kind of stuff.

But the $40,000 chasm is a marketing challenge. Let me explain.

The $40,000 chasm is the distinction between a part-time, “micro-niche” business that sort of grows up between the cracks in the sidewalk of the world, and a larger operation that can support the attention and care that it needs to truly take root and dominate.

I’ve always said, because I know it to be true, that it’s easier to get from $100K per year to $1M than to get from $10K to $100K. That $40K hump can be real tricky. It’s the place that separates the men from the boys.

What gets people over the $40K hump? I’ll rattle off a list of things:

-Going from getting little bits of traffic here and there, to being able to reliably step up and buy it – and buy it effectively
-Sales copy on the site that signals to the visitor that this offering is a cut above the competition. A lot of people go cheap on this, or resist the knowledge of learning how
-Having an ascension process for taking a customer from introductory purchases to greater and greater involvement. Significant upsells, perhaps, or memberships, or in-person or on-phone follow up
-True blue testing and tracking and split testing of web pages for continuous improvement of results (It’s amazing how few people actually do this, even seasoned marketing veterans! But the power of this cannot be overstated. You NEED to be doing this.)

This article was copied from Perry Marshall’s email newsletter.

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