On today’s show, we receive an intriguing question from Suman: “Can I become a millionaire as a freelancer?”
On the surface, this seems like a simple yes or no question. But as we discussed, there are a lot of interesting layers and implications behind it.
Ultimately, the answer is yes – you absolutely can become a millionaire as a freelancer or service provider. But it takes focus, smart strategy, and the right mindset.
Key Takeaways from this Episode:
- Cultivate an abundance mindset – see opportunities, not limitations.
- Overcome negative thinking and survival mode – focus on how investments will grow your business.
- Remember money is a means to an end, not the end goal itself.
- Build recurring revenue and consider selling your business to hit $1M faster.
Mindset is Key
More than anything, becoming a millionaire starts with your mindset and beliefs around wealth and abundance. If you believe deep down that freelancers can only scrape by, then that will become a self-fulfilling prophecy.
As Preston said, a lot of creative freelancers like writers, designers, and developers fall into the trap of thinking they can either do work they love or get rich, but not both. We wholeheartedly disagree – with the right strategy, mindset, and effort you can absolutely have a meaningful, fulfilling career that also generates millions in revenue.
It all starts with cultivating an abundance mindset. Instead of scarcity and limitation, you have to start seeing opportunities everywhere. View investments in your business as seeds that will grow, not costs you can’t afford.
Survival and Negative Thinking Hold You Back
The human brain is naturally wired to focus on survival and avoid risk. This leads many freelancers and entrepreneurs to get stuck in negative, limited thinking.
As Clay shared, when evaluating a potential investment like new camera equipment for a photography business, a negative mindset only sees the $3,000 cost. But an abundance mindset sees how investing $3,000 could easily result in $30,000 in new business.
Stop thinking about how expensive something is or how you can’t afford it. Instead figure out how you can afford it – whether that’s taking out a small business loan, bringing on new clients, or cutting expenses in other areas. Where there’s a will, there’s usually a way.
Money is a Tool, Not the End Game
When listeners ask how to make a million dollars or more, often money has taken on an outsized level of importance. But as Preston explained, you have to look deeper at why money matters and what it really represents for you.
Does being a millionaire mean freedom from financial stress? The ability to provide for your family? Flexibility to travel and do what you love?
If you connect with the emotional drivers behind wanting wealth, you may realize you can create that lifestyle now without actually having millions in the bank. True fulfillment won’t come from a number, but what you choose to do with the resources you have.
For the super-rich, money becomes simply a tool they use to fulfill their vision – not the goal itself. Remember that money is a means to an end, not the end. Focus on your purpose, values and vision first.
Recurring Revenue and Selling Your Business
Now, if your goal really is to hit that million dollar number, there are clear paths to get there as a freelancer or agency owner.
The 2 key strategies Clay recommended are:
- Building recurring revenue
- Selling your business
Recurring clients provide predictable, consistent cash flow every month. This makes your agency much more valuable to potential buyers and also creates sustainability so you can continue reinvesting in growth.
Clay shared how he built a 7-figure web design agency and sold it just 3.5 years after crossing the million revenue mark. Exits like this can create sudden wealth for founders.
But even if you don’t intend to sell right away, every smart business owner should build their company as if they plan to sell it one day. Creating true equity value takes time but compounds over the years.
Keep the Million Dollar Goal in Perspective
Finally, remember that “millionaire” means something different than it used to. $1 million generates a lot less purchasing power and lifestyle than it did even 10 or 20 years ago.
Like Preston said, $100k per year used to be the benchmark goal. Now it’s $100k per month.
The world’s needs are infinite, which means business opportunity is unlimited too. With the right mindset and strategy, anyone can turn their skills, knowledge and experience into a highly profitable freelance business or agency.
Believe in your potential for abundance and success – and then put in the work to make it happen. You’ve got this!
Episode Transcript
This transcript was auto-generated and may have grammatical errors.
00:00.00
Preston
Hello and welcome to another episode of “Freelance to Founder.” This is a special Q&A episode. We do these every Tuesday where we answer questions that you send in at freelancetofounder.com/ask. Thank you so much for sending in your questions; we love hearing from you guys. Today’s question, I like to surprise Clay with tough questions, and actually, Clay, this one is one that you answered already in our Facebook group. I pulled this from the Facebook group. And, whoop, I know that’s what I’m waiting to see if you do.
00:24.41
Clay:
Nice, I hope I give the same answer. Yeah.
00:31.79
Preston
But also, yeah, we take these questions from the Facebook group every once in a while too, so you can visit that at milow.com/mastermind; that’s our free Facebook group. And this question comes from Sumon. The question is, it’s short: “Can I be a millionaire as a web designer?”
00:47.92
Clay:
Oh yeah, I did answer this a very, very short answer.
00:50.80
Preston
Yeah, you answered it, and I think, and I think just in case people are listening, they’re like, “I’m not in web design. Whatever.” I think let’s talk about this idea of basically becoming wealthy as a freelancer, as a freelance service provider. Can I become a millionaire or can I become wealthy, you know, offering freelance services? But let’s answer Sumon’s question first: Can I be a millionaire as a web designer? Alright, and that wraps up this. So, thanks so much for joining today. Yeah.
01:14.33
Clay:
Yes.
01:20.97
Clay:
Ah, that’s the shortest episode ever. Alright, let’s go into it. I guess, ah, yes. I think it is. I mean, there are so many different ways to do this. Um.
01:27.39
Preston
Yeah, go for it.
01:38.46
Clay:
But I think the way to do this is monthly recurring revenue, and then use… and yeah, it is. And then if you want to get there even quicker, you sell it.
01:46.56
Preston
That’s certainly how you got there so quickly, right?
01:56.65
Preston
Um.
01:57.42
Clay:
That’s, in my opinion, from my experience, that’s how you do it. Four years.
02:02.15
Preston
Yeah, that’s true. How old was your first agency when you sold it? So, four years. And how long, you guys… You guys cracked the million-dollar-a-year revenue mark. How long did it take to do that? Okay.
02:11.10
Clay:
Yeah, we cracked it, and we cracked it in three and a half, yep.
02:19.36
Preston
So, shortly after cracking the seven-figure mark, top-line revenue, you sold it, and for probably a pretty nice chunk of change. Yeah, yeah, yeah, good. Um.
02:29.38
Clay:
I’m happy with the amount, yeah, ah.
02:37.22
Preston
Okay, so I guess let’s dive a little bit more into why a person might be asking this. Why is Sumon… We’re gonna try to read his mind a little bit here, right? He says, “Can I become a millionaire as a web designer?” For me, like, what’s not being said in the question is, um, there’s this thing I love doing, but I’m just not sure I can ever become really wealthy doing it. It feels like, you know, I’m going to be working for pennies and scratching out a living, as they say, until the day I die. Um.
03:00.73
Clay:
You yourself, yep.
03:11.85
Clay:
Ah.
03:12.37
Preston
And a lot of people feel that way, like, particularly us creatives, if, you know, web designers, writers, graphic designers. We sort of think, well, like, if I want to do something I love, that’s just the cost of doing work that I love, is, like, I’m not going to get rich, right? Or I’m not going to be a millionaire. I’m not going to make tons of money.
03:24.13
Clay:
E.
03:29.67
Preston
I think something that’s drilled into people’s minds is, like, you can either make money or you can be happy at work, right? And I disagree with that. I think you can do both. I’ve seen plenty of people do both, particularly in what we have available to us today with the internet and other resources. It’s so possible.
03:41.72
Clay:
Yeah.
03:47.63
Preston
So for me, I think the first piece of advice for someone going, like, “Okay, I’m a writer. Can I really become actually wealthy as a writer?” For me, the first step is that mindset, that abundance mindset where it’s like, there is so much money out there to be had. Yeah, yeah.
04:02.40
Clay:
Mindset’s key.
04:05.39
Preston
How has that changed for you over the years, I’m curious? Like, you know, eating ramen, right? Ah, at the bottom shelf, no-name ramen to building a seven-figure agency.
04:19.18
Clay:
Yeah, the mindset’s super key because I think us as human beings, we’re hardwired. Our brains are hardwired to be in survival mode, right? It’s that negative, that negative, ah.
04:28.20
Preston
Yeah.
04:35.46
Clay:
Mindset, right? It’s the example of, like, you know, like, if, ah, if you’re looking at investing in, I don’t know, a piece of equipment. Let’s just say that with your business. Um.
04:53.46
Clay:
But let’s just say, like, photography, for example, right? It’s… you can invest in a new camera. In a camera. But like, ah, a negative mindset is going to be, “Well, man, that’s going to cost me, like, $3,000. You know, I don’t think I can do that,” where an abundance mindset says…
05:13.19
Clay:
I think this $3,000 is going to make me 110 times that, you know what I mean? Like, that’s… that’s the difference. Um, and also just… it’s just you’ve got to think about money, too. Um, where…
05:18.57
Preston
Yeah, yeah, yeah, yeah.
05:32.30
Clay:
Money is a vehicle that will fuel what you actually want. So, I saw a video the other day, I don’t remember who it was, but they said, “Look at all the billionaires out there.”
05:38.57
Preston
Mm.
05:50.88
Clay:
So, the example he gave was like, if I… if I made enough money to buy a Ferrari car, I’m… I’m going to do it, right? I probably will do it. But if I have enough money to buy Ferrari the corporation…
06:09.44
Preston
Yeah, yeah, I saw this.
06:10.25
Clay:
Ferrari… I’m… I’m probably don’t give a crap about whether I drive a Ferrari or not, does that make sense? Like, so, like… Right now, if I… if I had enough money, but I’m not a billionaire, to buy a Ferrari, I would buy it because maybe… maybe I’m gonna show it off or whatever. But like, if I could buy Ferrari the corporation, I’ll… I’ll drive whatever I want because who gives a crap? Like, I’m a billionaire.
06:44.48
Preston
Yeah, like how Warren Buffett eats breakfast at McDonald’s and drives… Ah, I don’t remember, like a Volvo or something. I can’t remember; he’s famous. He’s famous for basically living, you know, quite modestly for being one of the wealthiest people.
06:45.58
Clay:
Ah, you know.
06:52.27
Clay:
Yeah.
07:02.95
Preston
And smartest, certainly the smartest people in investing.
07:03.59
Clay:
Um, yeah. So, yeah, so, like, the point here is, super filthy rich people have a much different mindset about money.
07:15.96
Preston
Um, I think, yeah, what do they really want, right? Yeah, because I think what’s not being said here, right, is, is, um, Sumon is asking…
07:17.13
Clay:
You know, it’s more about, it’s more about, like, what is it that they’re going to do that makes them happy.
07:32.46
Preston
Can I be a millionaire? Well, what are you really asking? Like, if we were to go deeper, right? Why do you want to be a millionaire? Well, I want to not have to worry about my bills. Okay, well, that certainly you can achieve, right? Why else? I want more flexibility to travel with my family. Okay, well, that certainly you can also do.
07:43.88
Clay:
Yep.
07:48.71
Clay:
Oh.
07:50.97
Preston
On a web designer’s salary or running your own web design business. So, like, it might not be that magical one with six zeros behind it that he’s really after. But I just… I guess, yeah, it…
08:06.36
Clay:
It’s all achievable. You know, it’s like, okay, don’t go buy that $100,000 car, you know what I mean, or don’t go buy that million-dollar house, you know? It’s… it’s, ah…
08:08.63
Preston
Yeah.
08:15.52
Preston
Um.
08:21.92
Clay:
It’s so funny. We sometimes, like, we buy… I’m guilty of this. We buy things to please people we don’t really like. Ah, yeah, um.
08:28.74
Preston
Oh yeah, total status symbol stuff, right? Like, just to show that we’re doing well.
08:39.39
Clay:
Yeah, so I like that you brought this up because like what’s the real reason behind that, ah, because more than likely it’s totally achievable without all that money. Yeah.
08:51.73
Preston
Yeah, yeah, that’s kind of what I’m getting at is like you can do everything you want to do and not necessarily be, ah, what we would call a millionaire. Um, but also like if you… Oh, go ahead? Well, I was just gonna say, like, if… if you care about the title.
08:57.86
Clay:
Yeah, should we talk? Oh, no, I was… I was gonna switch it up, but like finish your thought. And.
09:09.46
Preston
Right? If you care, for some reason, about being able to say you’re a millionaire, the more you investigate that and learn about that, the more you realize how shallow that is. Like, so many people define that so differently, right? Is it… is it that my business is making $1,000,000 plus a year? Is it that I’m personally pocketing a million dollars a year? Is it that I just have a million dollars in the bank?
09:22.21
Clay:
Is.
09:28.72
Preston
Is it that I have cash and assets in the amount of a million dollars? I mean, it’s just like so… so I think, I think, you know, to go along with what we’ve already said, you have to define, like, why that matters to you. The number truly doesn’t matter, and $1,000,000 today is not what it was even ten years ago, right? And so, like…
09:45.91
Clay:
Back? Yeah.
09:48.31
Preston
Um, I could be a millionaire today, and that’s pretty small compared to a millionaire in the ’70s or the ’50s or a hundred years ago.
09:55.98
Clay:
You know, that’s so true because like if you look at all the ads and stuff, everybody ten years ago. Everybody was like, “Ah, let me show you how to make a hundred K a year.” Right now, you see the ads are like, “Let me show you how to make a hundred K a month.”
10:05.65
Preston
Right? Yeah. Ah, yup. Yeah, no, when I started an internet business, it was like 2008, 2009, which in internet time is like forever ago, right? So, what, fifteen-ish years ago?
10:13.59
Clay:
You know, it’s totally changed.
10:23.50
Clay:
If…
10:24.95
Preston
And, yeah, that was the goal for all of us. We were all kind of hanging out, learning from each other, and the goal was like, can we make a hundred grand in a year? Not profit, can we just bring in a $100,000 in revenue? I wouldn’t be able to survive on just that now.
10:36.19
Clay:
Just rather. Ah.
10:42.51
Clay:
If…
10:44.30
Preston
With what it costs to run the business and then pay myself, you know, a $100,000 business wouldn’t support me and my team and my family. So…
10:50.91
Clay:
If I was paying myself a hundred K, like, and that was my paycheck, my personal paycheck, what I pay my… I couldn’t. No, couldn’t survive, not here in Austin. You know, it’s crazy. But should we talk about, like, okay?
10:55.71
Preston
Yeah. Yeah, yep, yep.
11:09.70
Clay:
Let’s say he’s got his happiness stuff all locked in, right? And let’s just say a million dollars is what it’s going to take. Should we go that route, or should we, like, I don’t know, we’re, like, 11 minutes in? I guess… I mean, I’ll just kind of go back to my original.
11:10.76
Preston
Okay. Sure. I don’t know. Go for it. Yeah.
11:26.99
Clay:
The original thought was, as a web designer. Okay, there are other people here. But I guess this is true for any business. Really, you always want to build your business up as if you are going to sell it. You know what I mean? Because if you make it super attractive.
11:41.83
Preston
Oh.
11:46.90
Clay:
To a potential buyer. I mean, that’s honestly the quickest way to achieve that goal. Is to sell a business, and the way to do that is to build it up to where it is attractive for that.
11:57.30
Preston
Um, yeah.
12:04.66
Clay:
Back to my original thought is monthly recurring revenue. Like, that’s a super attractive thing to a potential buyer. Cash flow. Cash flow is king.
12:11.47
Preston
Ah, because they can just step in, and they’ve got cash flow immediately. You know? Yeah, yeah. And so, we’ve got a million episodes on recurring revenue. We actually have a 5-day recurring revenue challenge you can take. We have lots of content on recurring revenue, for sure. Because, yeah, that is not only will it set you up for success at an exit if you want to sell your company at some point, but it’s also the quickest way to predict your cash flow, which then frees you up to build systems and grow your business. Like, we can’t say enough good about recurring revenue when it comes to building wealth and building your business.
12:56.93
Clay:
So, yep, that’s about, I think that’s about all we can sum up in 13 minutes.
13:01.13
Preston
That’s what we got. Okay, 13 minutes. Thank you so much, Sumon, for submitting such a simple question, but I think it has such deep undertones, you know. So, hopefully, we’ve been able to answer a little bit of that for you. Really, the answer is yes, of course, you can. You can become a millionaire as a web designer. You can become a millionaire with any kind of freelancer. It’s going to take a lot of what we talk about on the show, building systems, looking for recurring revenue, and potentially an exit, selling your business at some point, which I would also recommend, right? Or let it generate revenue for you for a long time. So, anyway, yes, you can. We wish you the best of luck as you do. So, hopefully, we can help you along the way as you continue to listen to this show. Thanks so much for writing in your question. Um, Clay Mosley from gettrify.com is what I meant to say. And I’ve been Preston from millow.co. Thanks so much for joining me, man. We
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