How I Made $3 Million in One Year | Vivian Tu

Summary

The transcript reveals an insightful discussion on the business model of a successful content creator, emphasizing the majority of income from brand partnerships and the gradual nature of book advances. It highlights the challenges of managing a business, including agency fees, team salaries, and personal expenses, which significantly reduce the actual take-home pay. The creator also shares the fulfillment derived from helping regular people improve their financial situation, contrasting with previous corporate roles, and touches on the importance of providing a unique spin in content creation to stand out.

Takeaways

• 😀 The primary source of income is from brand partnerships, which make up the majority of the business revenue.
• 📚 Book advances are structured in installments, with payments spread out upon signing, manuscript delivery, book launch, and a year after launch.
• 🎙 Podcast advertising is another revenue stream, though it's considered the smallest among the mentioned sources.
• 📈 Affiliate marketing is a part of the business but not heavily pushed; it's mainly utilized during major sales events like Black Friday or Cyber Monday.
• 💼 The speaker emphasizes the importance of reinvesting in the business and the fulfillment derived from helping regular people get richer, as opposed to previous roles in corporate settings.
• 🤑 Despite a business clearing $3.2 million, after expenses and cuts for teams, the actual personal income is significantly less, around $300,000.
• 💼 The speaker highlights the high costs of running a business, including agency fees, management, legal fees, and various operational expenses.
• 📈 The speaker's social media reach is substantial, with 6.5 to 7 million followers and an Instagram reach of 16 million in the last month.
• 📚 The decision to write a book was driven by the audience's request for a comprehensive guide on personal finance, from start to finish.
• 🎨 The speaker's content is unique due to the relatable analogies used to explain complex financial topics, making the information accessible to a broader audience.
• 🔄 The importance of providing a fresh perspective or 'spin' on content is emphasized, as it helps creators stand out in a crowded field.

Q & A

What is the primary source of income for the business mentioned in the transcript?

The primary source of income is from Brand Partnerships, with a significant portion also coming from advertising on the podcast and book advances.

How is the book advance structured in terms of payment distribution?

The book advance is distributed in four equal parts: a quarter upon signing, a quarter upon final manuscript delivery, a quarter on the book launch day, and the final quarter a year after the book launches.

What is the role of an agency in the business mentioned?

The agency takes between 10 to 15% of every dollar made depending on the sector, playing a significant role in managing the business.

What percentage of income is taken by the management team and attorney from the business?

The management team takes 10% of everything, and the attorney takes 5%, totaling 25 to 30% off the top before any other expenses.

What are some of the business expenses mentioned in the transcript?

Some of the business expenses include monthly retainers for a business manager, publicist, newsletter writer, social media manager, assistant, camera equipment for the studio, travel expenses for events, hotels, and hair and makeup services for appearances.

How much of the business's revenue did the owner take home after all expenses and taxes?

The owner took home approximately $300,000 from a business that cleared 3.2 million in revenue.

What is the approximate number of followers across all platforms for the business?

The approximate number of followers is between 6.5 to 7 million.

Why did the business owner decide to write a book?

The decision to write a book was influenced by the requests from the 'BFFs' (Best F***ing Friends) who wanted a comprehensive guide to improve their financial knowledge from start to finish.

What is the main difference between the content provided by the business owner and traditional financial advice?

The main difference is the unique and relatable way the content is presented, making complex financial topics understandable by comparing them to everyday scenarios like going grocery shopping or getting a manicure.

How does the business owner feel about their current work compared to their previous jobs?

The business owner feels more fulfilled now because they are helping regular people get richer and improve their financial lives, as opposed to previous jobs where they helped corporations or wealthy institutions get richer.

What is the approximate reach of the business on Instagram in terms of accounts reached?

The approximate reach on Instagram for the last month was around 16 million.