Why Opportunity Cost Matters More Than What You’re Actually Doing in Your Business

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If you’re not actively thinking about opportunity cost in everything you do, you’re making decisions that don’t serve your business. And this isn’t just about you as the business owner—it’s about every single person on your team.

When I moved from my farm mansion to a new penthouse, the transition illustrated what opportunity cost actually looks like in real life.

Running Master Internet Marketing, our 7-week live comprehensive training, and working with operators in our flagship program, I’ve observed that the biggest constraint isn’t money. It’s attention and time allocation.

Results are not typical. Your results will vary and depend entirely on your individual capacity, business experience, expertise, and level of desire. There are no guarantees concerning the level of success you may experience. The testimonials and examples used are not intended to represent or guarantee that anyone will achieve the same or similar results. We don’t believe in get-rich-quick programs. We believe in hard work, adding value, and serving others. As stated by law, we can not and do not make any guarantees about your own ability to get results or earn any money with our information, courses, programs, or strategies.

How Giving Away Assets Can Make More Financial Sense Than Selling Them

I had a 12,000 square foot house on 5 acres. You can imagine the amount of stuff I accumulated over the years. A dead Polaris Slingshot sat in my garage—I had put about $70,000 to $80,000 into modding that thing. Most people who buy those have terrible taste, but I actually made it good. Problem was, it just sat there for two years: dead battery, air suspension had it sitting on the ground.

I also had two ATVs, a big trailer, and an entire e-commerce business called The Big Candle. These were $300 to $500 candles for people with big houses—regular candles don’t cut it when you’ve got serious square footage. I spent about $60,000 developing that business over two years and never really put attention into it.

When it came time to move, I could have probably made $20,000 on the Slingshot at a fire sale price. Maybe $5,000 on the ATVs. The candle business might have sold for $100,000, maybe less if I wanted to move it quickly.

Instead, I called one of my staff members. He’s been with me since 2018. I told him straight up: fly down here, take whatever you want, sell it, keep it, I don’t care. I’ll sign over the titles. Just don’t tell me anything about it except good news, and get it all out by this specific date.

For this team member, that’s tens of thousands of dollars—an impactful amount of money for him. For me, tens of thousands just isn’t worth the time, effort, attention, and potential stress compared to what I could be doing with that time.

I trust myself as an earner. I knew that with that additional time and reduced stress, I was going to focus on what I do best. My staff member came up on tens of thousands. I came up on hundreds of thousands. No stress about it at all.

Why Delegating Small Tasks Frees Up Time for Revenue-Generating Activities

I don’t clean anything. My house isn’t dirty because I have three maids. I haven’t been to a grocery store in probably eight years. I use Instacart and get groceries delivered right to my front door.

I don’t go to the doctor. The doctor comes to me. I’ve gotten X-rays at my house. You can check my Instagram and scroll down far enough to see me in the driveway with my red 458 getting an X-ray on my front stoop. Mobile X-ray costs about $500. You know how long it would take to go to an emergency room and sit there waiting for a basic X-ray?

My chiropractor comes to my house. You can have dentists come to your home now. My barber comes to me.

I had a family member I told to trade up so they could get richer about grocery shopping. They said something like, “but how will I be able to pick out my avocados?” That’s the kind of thinking that keeps people stuck.

The math on the barber situation is straightforward. My barber is about 30 minutes away. I get my haircut four times a month—conservative estimate: twice a month like regular people. That’s 30 minutes there, 30 minutes back: one hour of drive time. Twice a month is 2 hours. Twelve months in a year means 24 full hours spent just in drive time to and from the barber shop.

One full calendar day out of 365 days would be taken up just in barber shop drive time. I’ve got some incredible cars that I enjoy driving, and I still won’t justify a full 24 hours in my entire calendar year going toward barber shop drive time. That’s not how you build businesses that operate at scale.

According to research from McKinsey on time management and executive productivity, high-performing executives spend significantly more time on strategic activities when they systematically eliminate low-value tasks from their schedules.

Why High-Ticket Offers Require Fewer Customers to Hit the Same Revenue Targets

This lesson correlates heavily into business. I get people all the time asking questions that immediately raise red flags for me. They’re thinking about doing something when they could be doing something else that makes way more sense.

Perfect example: low ticket versus high ticket.

My goal in my marketing agency since 2017 has been making a million dollars a month off of 10 clients. That means each client pays $100,000 a month. To earn that, I need to provide exceptional value. I get paid on net revenue share, which means I need to net each client a million dollars in trackable results back to my actions.

I only need 10 people. If I sold something for $10,000, I’d need a hundred people. If I sold something for $1,000, I’d need a thousand people. The higher ticket I can sell, the lower the quantity of people I need to sell to.

One operator sold franchises. At the time, you could target net worth, liquid assets, active income, and credit scores with Facebook advertising. He was selling a $1.2 million franchise.

Over about six months, we generated nine sales for that franchise offer. That’s over $10 million just in upfront franchise costs from leads we directly generated and drove to his Discovery Day at Disney World. He only needed nine people to make more than $10 million. He did two Discovery Days per year, one in the first 3 months and one in the second 3 months.

The framework for high-ticket client acquisition focuses on quality of leads rather than volume. Harvard Business Review’s research on customer acquisition shows that businesses with higher customer lifetime values can invest more in acquisition and still maintain healthy unit economics.

What Happens When Your Price Point Is Too Low to Compete on Paid Advertising

A business owner DM’d me on Instagram asking for help with paid advertising. I asked basic questions: what are you selling, how much does it cost, any links to the funnel. He came back and said he charges $50 a month.

Right away, that just takes the life out of me. He was doing about $155,000 in recurring revenue, which to be fair is a really good client dilution ratio. If he lost hundreds of people, it wouldn’t make too big of a dent.

When you sell high ticket—like my example of a million dollars a month with 10 clients paying $100,000 each—if I lose two clients that’s 20% of total revenue. If he loses hundreds of people, it might be single-digit percentages.

But the issue is acquisition cost. To get to a million dollars a month at $50 per month, you need 20,000 people. Twenty thousand versus 10 in my example. That’s a pretty substantial difference.

The cost of acquisition is the killer. Charging $50 a month, you either have to lose money or, in the best case scenario with the best advertisers and perfect statistics, acquire that customer at break-even or maybe slightly profitable upfront. Fifty dollars doesn’t give you a lot of room. It doesn’t enable you to compete.

If somebody else comes along and charges $100 for the same thing, they can spend twice as much as you to acquire customers. Maybe more depending on their cash flow situation and their reserve to front cash. They can acquire customers at a negative or break-even rate and be profitable every month after that.

That’s the issue with that model. It takes too many yeses and puts you in a position where you get outcompeted by everybody else. You just can’t compete.

According to research from ProfitWell on SaaS pricing strategies, companies with higher average revenue per user can sustain customer acquisition costs that would be impossible for low-ticket competitors.

Why Keeping Momentum on What’s Working Beats Starting New Projects

I have a client right now with a $10,000 offer and an upsell that’s upwards of $220,000. They sell the offer consistently. They were at $992,000 last month. This month they’ll break a million dollars a month.

When they started with us, they were around $300,000 to $400,000 a month. Their previous advertiser was holding them back. It’s been two months since we’ve worked with them.

They’ll break the million-dollar month this month. But there’s a lot of stuff they’re starting to bring up that they’ve wanted to do for a while. We just say no to it. It’s opportunity cost.

We’re focused on scaling the offers that are working best right now, which are the high-ticket offers. We take as many people as we can through a video sales letter call funnel. In addition to that, we have once-a-month to sometimes three-times-a-month live webinars based on the availability of the business owner.

Those two funnels alone got the business from $300,000–$400,000 a month all the way up to $992,000 last month. They want to introduce low-ticket stuff now.

All we have to do in terms of organizational effort is keep focus on what’s going to continue to create momentum, continue to scale, and continue to create additional revenue. There’s no justification to focus time and organizational effort and resources on low-ticket in that example.

When Low-Ticket Products Make Sense as a Lead Generation System

I typically refer to low ticket as a paid leads strategy. I could acquire a customer to liquidate the ad spend with a low-ticket product. Then I could give those leads to a setter. Those setters could work through them and schedule people onto the closers’ calendar. If I acquire that lead at a self-liquidating dollar amount or even profitable, ideally the money I make minus sales commissions is going to be pure profit.

That’s the appeal. I’m not opposed to doing that with the intention of doing it as a paid lead strategy. However, there are appropriate times where you can and cannot focus on different things.

The framework is straightforward: low ticket works when it feeds a high-ticket backend. It doesn’t work as a standalone business model for most operators.

How to Decide What Deserves Your Attention Based on Existing Momentum

There was a time in my life where I could have sold my Polaris Slingshot, my ATVs, the electric bikes, the old G-Wagon rims, the candle business. Maybe not even sold it—just kept it and started giving it the attention it deserves to scale it up.

But this current version of myself has extreme momentum on existing income-producing assets. The time and attention I put into what produces income makes no sense to deviate into new things.

An object in motion is easier to keep in motion. That’s a universal law. It’s a principle of operating on Earth. It’s like gravity—you can’t argue with gravity.

People act like the only universal law on Earth is gravity. They forget about the basic things you learn in science class: kinetic energy, momentum, motion. Basic stuff.

This applies from getting a business that’s going to hit a million this month to what’s the speed in which it’s probable to get to $2 million a month. What’s the speed in which it’s probable to go from $2 million to $4 million a month.

It’s excessively more probable when we focus time, effort, and organizational resources on those initiatives.

Why Splitting Focus Across Multiple Projects Kills Your Growth Rate

You discount the fact that as a business, when you think you’re doing things like hedging, you take that precious organizational time, effort, energy, and resources and put it into all the side things that you think are smart to do. Those things can kill your momentum. They can destroy you.

To keep an object in motion that’s already in motion and make it go faster is a higher probability than to deviate attention into something that’s not moving at all yet. Making it get in motion and then speeding it up to the point where it contributes as much as the other thing that was already in motion—that’s much less probable.

It’s a fine game to juggle in business. You’ve got to determine not just as a business owner but as a staff member as well. You’ve got to juggle it at the executive level, the management level, and the individual tactical players.

Who needs to do what? Who’s potentially focusing on something that’s the equivalent of grocery shopping or driving to the barber shop? Who needs to cut that out?

This is a valuable lesson to teach everybody within the organization. It’s a valuable lesson to share. It’s a valuable lesson to live as a truth and a principle.

I’ve shown you personal examples. I’ve shown you money examples. I’ve shown you business examples. This type of mentality—getting everyone in the business to think this way—is what creates million-dollar businesses.

If you’re an earner making good money and want to be around other people trying to get a lot richer than they are now, that’s what my flagship program is all about. Businesses I’ve worked with in that group range from doing $5 million a month down to $20,000–$50,000 a month. It creates a nice balance to be able to get perspective from people at different levels.

Results are not typical. Your results will vary and depend entirely on your individual capacity, business experience, expertise, and level of desire. There are no guarantees concerning the level of success you may experience. The testimonials and examples used are not intended to represent or guarantee that anyone will achieve the same or similar results. We don’t believe in get-rich-quick programs. We believe in hard work, adding value, and serving others. As stated by law, we can not and do not make any guarantees about your own ability to get results or earn any money with our information, courses, programs, or strategies.

The lesson is straightforward: every time you’re about to spend time, money, or attention on something, ask yourself what else you could be doing instead. What’s the opportunity cost? Are you trading up or trading down?

That’s the framework for making better decisions. Apply it to your business, your team, and your personal life. You’ll start seeing where attention is being wasted on low-value activities that could be redirected to what actually moves the business forward.

For operators ready to build systems that protect focus and eliminate waste, Master Internet Marketing covers the frameworks for client acquisition, offer structure, and operational efficiency in our 7-week live comprehensive training.