YouTube transcript (SmiOK8Yun4s) — Transcript

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1. 0:00This fashion stylist was making 300,000
2. 0:02a year but leaving millions on the
3. 0:04table. So, here's how we fix the three
4. 0:06core issues in her business and how you
5. 0:07can apply the same tactics to scale
6. 0:09yours. My name's Alexi. I run
7. 0:10acquisition.com, a portfolio of
8. 0:12companies that last year did over $250
9. 0:14million in aggregate revenue. So, let's
10. 0:15dive in. So, here are the quick facts
11. 0:17you need to know. Who does she sell to?
12. 0:18Rich folks. What does she sell them?
13. 0:20Fashion design and advice for their
14. 0:22personal styling. How much is she
15. 0:23making? 309,000. Her profit last year
16. 0:26130,000. That's 42% margins. The number
17. 0:28of customers she served lifetime is over
18. 0:30a thousand. So, kind of impressive. And
19. 0:31then this is her model. She sells an
20. 0:32$8,500 60-day kind of onboarding
21. 0:35transformation where she picks new
22. 0:36colors and palettes and all that kind of
23. 0:38stuff. And then she rotates them into a
24. 0:39$2,000 per month or $4,500 per quarter
25. 0:42ongoing style thing. Plus, she gets
26. 0:44affiliate commission because if they buy
27. 0:45clothing through her, she gets 10% of
28. 0:47the purchase price. That's how she makes
29. 0:48her money. Let's dive in. So, problem
30. 0:50number one, Ashley had a leaky funnel.
31. 0:52She has a premium offer, a good close
32. 0:54rate, and customers who love her work.
33. 0:55But when I looked at her funnel, it was
34. 0:56pretty much non-existent. She was
35. 0:58sending paid cold traffic to a form with
36. 1:01no headline, value proposition, or
37. 1:03reason to opt in. There was just a get
38. 1:04more info button. So, here's the wild
39. 1:06part. Despite all that, she was still
40. 1:08getting customers, which told me the
41. 1:10quality of her service was probably
42. 1:11pretty strong. And so, the bottleneck
43. 1:12was her conversion rate. Basically, the
44. 1:14number of clicks that actually turned
45. 1:15into customers. And so, the numbers
46. 1:17actually backed up that hypothesis. She
47. 1:18was getting about 1,800 clicks and
48. 1:20turning those 1,800 clicks only into
49. 1:23eight sales. a huge leak in her process.
50. 1:274% conversion to traffic with high
51. 1:29intent. Advertisements fall into two
52. 1:31categories. You have interruption based
53. 1:32and then you have intent based.
54. 1:34Interruption based is everything that
55. 1:35you see that you're not looking for. So
56. 1:37if you're on social media and you see an
57. 1:38ad, you didn't start that day being
58. 1:39like, you know what, I want to have an
59. 1:40ad for a new pillow. No, you just see
60. 1:42the ad that's interruption based. So
61. 1:44television, radio, social media, online
62. 1:47banner ads, all of that stuff is just
63. 1:50interruption. Intent is where you
64. 1:52initiate it. So you start to look for
65. 1:54it. That's usually when you search for
66. 1:55things. You might call up friends and
67. 1:56get referrals. Like those are high
68. 1:58intent customers or at least high intent
69. 1:59prospects. And you want to have very
70. 2:01different metrics that you track
71. 2:02separately for each of those things. And
72. 2:04one of the biggest mistakes that I think
73. 2:05business owners make is number one,
74. 2:06they'll blend that and try and
75. 2:07understand their business, which you
76. 2:09have to keep that separate because it's
77. 2:10two different people who need two
78. 2:11different processes and sometimes two
79. 2:12different products. Sometimes people
80. 2:14don't know if their stuff's good.
81. 2:15They're like, "Oh man, I think I'm doing
82. 2:16terribly." But they're comparing their
83. 2:17cold traffic metrics to their warm or
84. 2:20high intent traffic metrics and vice
85. 2:22versa. The good news is we didn't really
86. 2:23need to change what she was selling
87. 2:24because she was converting a high
88. 2:25percentage and she has decent price
89. 2:26points. So, I'm not upset about that
90. 2:28part. We just had to make it easier for
91. 2:30people to buy. So, this is what we did.
92. 2:31So, we made four core changes. Step one
93. 2:33is we added a lead magnet. And think
94. 2:35through all the different versions of
95. 2:36what could we give away for free to get
96. 2:38people to more interested. Because if
97. 2:39you just say, "Hey, get more info."
98. 2:40Number one, not very compelling. Number
99. 2:41two, that goes from like zero to let's
100. 2:43sleep together. And so, sure, she had a
101. 2:45high close rate, but she was also
102. 2:46dealing with the people who were like in
103. 2:47desperate need. But there's so many
104. 2:49other buyers, the 80% or more of buyers
105. 2:52who like just give me a little bit first
106. 2:53before I take the next step. That's
107. 2:55where the lead magic comes in. And I
108. 2:56think this is a huge misunderstanding
109. 2:57for a lot of businesses because like
110. 2:59people think, I'm going to give
111. 3:00something away for free. I'm going to
112. 3:00solve their problem. It doesn't work
113. 3:01like that at all. If you do it right,
114. 3:03what you do is you solve a very narrow
115. 3:04problem that then reveals the next
116. 3:05problem that you solve with the thing
117. 3:06you sell. If I were to say, "Hey, come
118. 3:08buy my thing." I might get one out of
119. 3:09100 people to buy. But if I say, "Hey,
120. 3:11you have this problem. Here's a free
121. 3:12thing." And I might get 10 people to try
122. 3:14my free thing. But then of those 10
123. 3:15people, I can get three of them to buy.
124. 3:17So, I triple my sales by adding some
125. 3:19sort of value prior to making my real
126. 3:21money ask. And if you think what is
127. 3:22content, content is in some ways
128. 3:24hundreds and thousands of tiny little
129. 3:26lead magnets that you get for free
130. 3:27without someone even having to opt in.
131. 3:29So that you can basically give a
132. 3:31pre-lead magnet to the lead magnet. And
133. 3:33so we can lubricate this entire process
134. 3:34top to bottom. So what we did is we
135. 3:36created a style assessment offer.
136. 3:38Basically a personalized consult based
137. 3:40on skin tone, body type, and lifestyle.
138. 3:42and somebody who's rich and feels like
139. 3:43their status doesn't match the way they
140. 3:45dress and cares about that. Obviously, I
141. 3:47care about that because my style is
142. 3:49impeccable. The thing that makes a great
143. 3:50lead mag because I don't want you to
144. 3:51take like should I use a style
145. 3:52assessment? No. Let me tell you that the
146. 3:54pieces that make a great lead magnet.
147. 3:55Fast, easy, narrow, solves one complete
148. 3:59problem. So, I'll tell you my favorite
149. 4:01lead magnet of all time. I just
150. 4:02remembered this the other day. So, I'll
151. 4:03tell you. So, I saw this in the dating
152. 4:05space. I said, "How to know if a girl
153. 4:07wants you to kiss her on a date." That's
154. 4:08a huge need for a guy if he's on a date,
155. 4:10but he doesn't want to be seem like a
156. 4:12weirdo, right? So, there's huge pain
157. 4:13that he's avoiding and great promise of
158. 4:15if she does like you, you get a kiss.
159. 4:17So, like literally such great polar uh
160. 4:20stakes for learning this one thing. So,
161. 4:22what they reveal and the lead magnet is
162. 4:23I'll give you the answer is you try and
163. 4:25brush her hair behind her ear. If you do
164. 4:27that and then she rolls her hand into or
165. 4:29doesn't at least move her head away from
166. 4:31your hand, then you've got a girl who's
167. 4:32okay with you kissing her. On the flip
168. 4:34side, if you reach for her hair and she
169. 4:35just moves her head back, she probably
170. 4:37doesn't want you to kiss her. Now, I
171. 4:38would also encourage you to not surprise
172. 4:39attack, uh, because most people would
173. 4:41just move away anyways. Always get
174. 4:43consent, guys. Let's talk about why it
175. 4:45works. So, instant perceived value,
176. 4:46especially for high-end clients who
177. 4:48don't want a DIY checklist, right? These
178. 4:50are high-end concierge. They want a
179. 4:52taste of that concierge experience. So,
180. 4:54the best thing we can do is let them try
181. 4:55it out a little bit. Let them ride the
182. 4:56bike. Let me tell you the action steps
183. 4:58for you so you can actually do this in
184. 4:59your own business. So, this is from the
185. 5:00$100 million leads page 45. If you're
186. 5:02struggling to get leads, make an amazing
187. 5:03lead magnet. Figure out the problem that
188. 5:05you want to solve for the right
189. 5:06customer. Figure out how you want to
190. 5:08solve it. Figure out how to deliver it.
191. 5:10Make the name interesting and clear.
192. 5:12Make it easy to consume. Make sure it's
193. 5:14actually good. And this one, like I
194. 5:16still don't get this. Like they're like
195. 5:17they put their trash as their lead
196. 5:18magnet. I'm like 99% of people are never
197. 5:20going to buy anything from you. You want
198. 5:21the marketplace to judge you on your
199. 5:23worst thing. I have now on average spent
200. 5:25two years per book that I've written,
201. 5:27which is basically the lead magnet for
202. 5:29my business. It's important. you don't
203. 5:30need to give your lead magnet to
204. 5:32everyone. And this is something that
205. 5:33Ashley brought up when we were talking
206. 5:34about this. She's like, I don't want to
207. 5:35give every Tom, Dick, and Harry free
208. 5:36personalized style assessment. And I was
209. 5:38like, you're right. You don't want to do
210. 5:39that. So, when we're going to give
211. 5:40someone this lead magnet, which doesn't
212. 5:42have to be automated, so people have
213. 5:43this assumption like, oh, it has to be
214. 5:44an ebook. It has to be a free video. It
215. 5:46has to be a book. It doesn't even have
216. 5:48to be a book. You can have a service as
217. 5:50a lead magnet. All you do though is it's
218. 5:52not for everyone. So, in order to
219. 5:53qualify for this free thing, like I
220. 5:56there's no rules. We can say who gets
221. 5:57this free thing, who doesn't get this
222. 5:58free thing. it's America or wherever you
223. 6:00live like you're allowed to choose to do
224. 6:01business with one person or another say
225. 6:03if you meet these qualifications then I
226. 6:05will give you this free thing because
227. 6:06you're a high likely candidate why would
228. 6:08I give you a ride in my free jet if I
229. 6:10want you to buy a private jet if you
230. 6:11can't afford a private jet there's no
231. 6:13point there's no way you can convert so
232. 6:14it's just pure cost for me not a good
233. 6:16idea and so the big four I always look
234. 6:17for budget authority need timing do they
235. 6:20have the money do they have the
236. 6:21authority to make the decision do they
237. 6:22actually want this thing and is now a
238. 6:23good time if I can get those four
239. 6:25answers prior and they say yes to all
240. 6:26four now I've got a good qualified
241. 6:28prospect The first thing we did to fix
242. 6:29the funnel is we gave something more
243. 6:31valuable for someone to take a step with
244. 6:32rather than get more in. So the second
245. 6:34thing we did was we installed a VSSL. So
246. 6:36what is a VSSL? A VSSL is a video sales
247. 6:39letter which is just a fancy way of
248. 6:40saying you you film yourself doing your
249. 6:43kind of your best pitch. VSSLs can vary
250. 6:45in length depending on the nature of the
251. 6:46traffic, the price point of the thing
252. 6:47that they're selling and the sales
253. 6:49process that follows. So the three Ps
254. 6:51for us in terms of making an acquisition
255. 6:52process is going to be product,
256. 6:53prospect, process. What are we selling?
257. 6:55Who are we selling it to? how we going
258. 6:56to sell it for her thing. She's going to
259. 6:58be preframing this style assessment to
260. 7:01then upsell on that call into her main
261. 7:03thing. I didn't expect, especially given
262. 7:05the nature of the traffic that she had,
263. 7:06which was high intent, that she would
264. 7:08really need more than call it like a 3
265. 7:09to seven minute video before the call
266. 7:11explaining the offer, setting
267. 7:13expectations, and this filters out bad
268. 7:15leads and pre-sales good ones. The
269. 7:17reason pre-selling is important,
270. 7:19especially as you scale, is that you
271. 7:21want to always shorten sales cycles. For
272. 7:23example, it takes you two calls to close
273. 7:25prospects on average. If you can take
274. 7:27that from two calls to one call, you can
275. 7:29double your sales with the same size
276. 7:31team. So, it makes you more efficient
277. 7:33per salesperson that you hire. And some
278. 7:35of you guys have three and four call
279. 7:37sales processes that absolutely can get
280. 7:39cut from four to two or sometimes even
281. 7:42one if you add in these pre-selling
282. 7:44components because functionally, this is
283. 7:46the belief that I would encourage you to
284. 7:47adopt. It only takes a moment to make a
285. 7:49decision. What takes prior to that
286. 7:51decision is the information required to
287. 7:52make the decision. When you have four
288. 7:54calls or six calls or three calls in
289. 7:56order to make a decision, it's because
290. 7:57it takes that much information or you're
291. 7:59inefficiently delivering that much
292. 8:02information. And so we have to think
293. 8:03what are the core elements of all three
294. 8:05or four or five or six calls, whatever
295. 8:06it is that it takes you currently to
296. 8:08close a prospect. And when I say calls,
297. 8:09this could be conversations, it could be
298. 8:11emails, whatever it is that you
299. 8:12communicate with people on. How can we
300. 8:14take the most salient elements, bring
301. 8:15them all to the front, and have everyone
302. 8:17watch it so that when you start your
303. 8:19sales conversation, you start with
304. 8:20somebody who already knows all the main
305. 8:22things, and we're really just talking
306. 8:23about decision to make a purchase. And
307. 8:25so, not only can we eliminate or
308. 8:27decrease the number of calls from call
309. 8:28it 3 to one call, but we can also take
310. 8:30our calls from call it 60 or 90 minute
311. 8:31calls to 15 to 20 minute calls. Again,
312. 8:34further increasing your efficiency with
313. 8:36your sales team. And this is ultimately
314. 8:38one of the most high leveraged things
315. 8:40that you can do in building a sales
316. 8:41process. Don't worry, I'm not going to
317. 8:43leave you hanging. How do you make a
318. 8:44VSSL? I'll just give you the quick and
319. 8:45dirty. There's obviously more to this,
320. 8:47but I'll just give you the things that
321. 8:48can get you started. And I will give you
322. 8:49this one caveat, which is don't obsess.
323. 8:52I would spend so long on the lead magnet
324. 8:54that I wouldn't even get it out. Or I'd
325. 8:55spend so long on my VSSL that I wouldn't
326. 8:58even do it. You want to make it good,
327. 8:59but you want to make it. And it being
328. 9:02made is it being posted, it being live.
329. 9:04Now, here's the cool part. You can
330. 9:05always make it better. You can always
331. 9:06make it better. You can always revisit
332. 9:07it. There's no VSSL that I think that is
333. 9:09active in any company that I own right
334. 9:10now. I'm just thinking outside top of my
335. 9:11head. Don't want to make a a major claim
336. 9:13here, but I'm pretty sure that is the
337. 9:14first version. We make it, we listen to
338. 9:17the objections that come up on sales
339. 9:18calls, and then we add those objections
340. 9:20in, and then we listen to more, and we
341. 9:22add more of those in, and it's really
342. 9:23simple. All you do is you record it, and
343. 9:25then you just add a cut in afterwards
344. 9:26that says, "Hey guys, I got a couple
345. 9:27more questions from people, so I figured
346. 9:28I'd answer them for you." Now, here are
347. 9:29the four steps. Number one, review your
348. 9:31most common objections in your sales
349. 9:32recordings if you if you're recording
350. 9:33your sales. If you're not, you probably
351. 9:34still know what they are. Number two,
352. 9:35record you answering those questions as
353. 9:37a video. Keep it light. It depends on
354. 9:39how in-depth your thing is, how many
355. 9:41requirements on their part. So again,
356. 9:42for her, high intent traffic, 3 to 7
357. 9:45minutes works fine. And then make sure
358. 9:47it gets sent to every single prospect in
359. 9:49the funnel. Here's the little pro tip
360. 9:50for you. You want to make sure that they
361. 9:52watch the VSSL. So how do you make sure
362. 9:53they watch the VSSL? So the way I like
363. 9:55to ask it is, hey, we want it embedded
364. 9:57automatically. Now, in that process,
365. 10:00we'll still follow up prior to the call
366. 10:01and say, hey, did he get a chance to
367. 10:03watch the video? If you're doing a set
368. 10:04call that leads into this, so a tiny bit
369. 10:06different, but let's say you called
370. 10:07outbound, you can still add a VSSL in,
371. 10:09you call the person, you set the call,
372. 10:11and then you say, "Hey, I'm going to
373. 10:12give you a video. Would you rather watch
374. 10:14it on your own on your own time or with
375. 10:16us?" Now, most people say, "On my own
376. 10:18time." And so then you just give it to
377. 10:19them to watch before the call. By giving
378. 10:21them that choice, it makes it much like
379. 10:23softer. I don't know, just it feels
380. 10:24better. What happens if you get on a
381. 10:25call and somebody didn't watch the
382. 10:26video? Didn't watch the video sales
383. 10:28letter. It is my belief that you want to
384. 10:30maintain the frame. And this is why I
385. 10:31prefer shorter VSSLs if whenever
386. 10:33possible because then I can say, "Hey,
387. 10:35you know what, John? We got an hour. So,
388. 10:36let me give you the video right now. You
389. 10:38can watch it. I'm going go grab a cup of
390. 10:39coffee. I'll be back in 7 minutes and
391. 10:40then we can talk about it. That way, you
392. 10:41don't need to change your scripting
393. 10:42because then you have multiple
394. 10:44variations of prospects that are coming
395. 10:45to you. Some have watched it, some
396. 10:46haven't. No, you want to unify and
397. 10:48uniform the process as much as
398. 10:50possible." So, we added a lead magnet to
399. 10:51fix the funnel. We added a VSSL. The
400. 10:53third thing we did was we qualified
401. 10:55harder. There are some things that in my
402. 10:57entrepreneur career have continued to be
403. 10:59more true over time. They like age like
404. 11:00wine. One of them is speed over
405. 11:03everything across everything in the
406. 11:04business. The more I'm in business, the
407. 11:06more I think about speed for qualifying
408. 11:08prospects, the more I think about it for
409. 11:09products, the more I think about it for
410. 11:10results. I always want to shorten
411. 11:12timelines. Another thing like that is
412. 11:14qualifications. We always have this big
413. 11:16fear that if we qualify prospects, we're
414. 11:17going to lose leads. But the thing is is
415. 11:19that if you don't qualify prospects,
416. 11:20you're going to waste your time. And
417. 11:22what happens is if you qualify well, you
418. 11:24actually turn people who are maybe into
419. 11:26yeses because they're like, "Whoa, these
420. 11:27guys are legit and they serve people
421. 11:30only like me." And so qualification in a
422. 11:32way is almost like positioning yourself
423. 11:34within a niche, but the niche is
424. 11:35qualified customers, right? And so I
425. 11:37said this earlier, but Bant is the IBM
426. 11:39invented this. This is not me. Budget
427. 11:41authority need timing. And we include
428. 11:42that in the intake form plus a question
429. 11:44about income. And so for her, she didn't
430. 11:46have a sales team and she knew she
431. 11:47needed they need to have money. And so
432. 11:48she asked that question ahead of time
433. 11:49because if they didn't have the money to
434. 11:50buy the clothes, they weren't going to
435. 11:51buy your services. She could spot those
436. 11:53serious buyers before they even had the
437. 11:55conversation. So she could automatically
438. 11:57cancel and say, "Hey, you don't
439. 11:57qualify." And then she doesn't have to
440. 11:59create a personalized style assessment
441. 12:00before talking to them. So it saves her
442. 12:02time. Step four, she had this funnel.
443. 12:04What we needed to do was rewrite the
444. 12:05headlines. Now, if there's ever
445. 12:07something to test on your funnel, it's
446. 12:09the headlines. 80% of your advertising
447. 12:11dollar goes to the first words that
448. 12:12someone sees. It literally frames the
449. 12:14rest of the page. That's why headlines
450. 12:16are so important. It's not just that
451. 12:17it's compelling or interesting. It
452. 12:18literally shifts how every other piece
453. 12:20of information is consumed. It's the
454. 12:22lens through which they consume your
455. 12:23copy. We rewrote the landing page
456. 12:24headline and sub headline to focus on
457. 12:26the freebie. Rather than trying to say,
458. 12:28"Hey, come home with me. Hey, come marry
459. 12:29me." We say, "Hey, why don't we just get
460. 12:31coffee? Why don't we just have a date?
461. 12:33Why don't we just meet each other
462. 12:34first?" What we renamed it was free
463. 12:36lookbook to dress for your tone or skin
464. 12:39tone using your existing closet. If
465. 12:41you're like, "How do I make a good
466. 12:42headline?" It's how to yay without boost
467. 12:44insecurity. The yay here is the dress
468. 12:46for your tone. Also, the free lookbook.
469. 12:48The using your existing closet is going
470. 12:50to be the thing that they're worried
471. 12:51about. What's my biggest objection that
472. 12:52someone's going to bring up? They're
473. 12:53going to be like, "Well, I don't want to
474. 12:54buy a whole bunch of stuff." So, it's
475. 12:55like we want to lower the bar for now to
476. 12:57get them on the phone. Free lookbook to
477. 12:59dress for your tone using your existing
478. 13:01closet. Now, there's no true boo on this
479. 13:03one, but I would say that using your
480. 13:04existing closet is a combination of
481. 13:06biggest insecurity and the boo. One
482. 13:08phrase that kind of combines both. And
483. 13:09that would get us way more people to opt
484. 13:11in and then ultimately book calls. And
485. 13:13so the first thing we did was fix the
486. 13:14funnel. And so she was converting barely
487. 13:16eight of her 1,800 blind clicks before.
488. 13:19Now with this new setup, complete with a
489. 13:20lead magnet, a sales video, a real
490. 13:22qualification process, and a better
491. 13:24headline, she should hopefully convert a
492. 13:25lot more. And so the reason we did all
493. 13:27this first is so we could be confident
494. 13:29our bucket wasn't leaking before we
495. 13:30crank the dial on customer acquisition
496. 13:33so she doesn't waste money spending on
497. 13:34ads that aren't going to convert. Ashley
498. 13:36is a textbook stage four in the $und00
499. 13:39million scaling roadmap. So, she needs
500. 13:41to identify and double down on her top
501. 13:4320% of customers and she needs to make
502. 13:46better free stuff to increase her
503. 13:48conversion rate and she needs to add
504. 13:50qualifications or friction so the extra
505. 13:52volume self- selects. So, let's just
506. 13:54have a look at our handydandy uh road
507. 13:56map here and see if that's actually what
508. 13:58we tell people to do because you know
509. 13:59what businesses behave in patterns.
510. 14:02They're very similar across industry,
511. 14:05across size uh because we hit these
512. 14:06stages these are typically the problems
513. 14:08that occur. So specialized product price
514. 14:10to serve niche down avatar which we had
515. 14:12fixed make better free stuff and more
516. 14:14creative to boost volume great add
517. 14:16qualification to friction so the extra
518. 14:17volume self- selects like every single
519. 14:19one of these and also track her KPI so
520. 14:21we can start managing this so she had
521. 14:22this data because we asked for it for
522. 14:24the episode that we did but she didn't
523. 14:25have it before that and when you do look
524. 14:27at the data here's the crazy thing with
525. 14:28data is that when you do look at it a
526. 14:30lot of things become obvious eight out
527. 14:31of 1800 feels low you better believe it
528. 14:33feels low what do we need to do to fix
529. 14:35it and so if you want to figure out
530. 14:36where you are at exactly on the scale
531. 14:38ing roadmap, you go to a.com/roadmap.
532. 14:41And if you want us to take a look at
533. 14:43your business, like we did with Ashley's
534. 14:44on the thank you page, book a call.
535. 14:46Every month, we hold a workshop here at
536. 14:47our headquarters and it's the easiest
537. 14:49way that we can make a huge impact on
538. 14:51someone's business is actually meeting
539. 14:52you face to face and just working
540. 14:54through this stuff. Next up is her
541. 14:56biggest untapped gold mine. So, this was
542. 14:58awesome. I was so happy when I found
543. 14:59this when we were doing the diligence.
544. 15:00Uh, you're going to love it. So, the
545. 15:02second problem is that she had a massive
546. 15:03missed opportunity. And I remember when
547. 15:05I saw this, I was like, this is the
548. 15:06Mondo move. If we did nothing else, this
549. 15:07would be the big thing. And so when I
550. 15:08asked Ashley where her best customers
551. 15:10came from, she said, "Probably the
552. 15:12matchmakers and social clubs I partnered
553. 15:14with." Cuz I was like, "Wait, six
554. 15:16partners send you a third of your entire
555. 15:18business." And she nodded. And I asked
556. 15:20how she found them. She said, "Just
557. 15:21Googled them and sent them some emails."
558. 15:23And that's when I knew we'd hit a big
559. 15:24gold mine. Those six partners found
560. 15:26through basic Google search and a few
561. 15:28emails accounted for one-third of her
562. 15:30total revenue. And so then I was like,
563. 15:31"Okay, how many emails did it take you
564. 15:33to get those six?" And she said, "40."
565. 15:35Think about this for a moment. If you
566. 15:36could send 40 emails and get a third of
567. 15:39your business from it, which before you
568. 15:40had sent those emails would be a 50%
569. 15:42increase, wouldn't you send more emails?
570. 15:44And to put context on this, relative to
571. 15:46her revenue, that's $2500 per email
572. 15:49sent. Those metrics are absurd. Most
573. 15:52founders would kill for a paid ad
574. 15:54channel or paid acquisition channel with
575. 15:55those numbers. And here she was barely
576. 15:57using it. Again, a huge missed
577. 15:58opportunity. And this is the kind of
578. 16:00leverage that gets me excited. And the
579. 16:01thing is is that almost every business
580. 16:02has multiple of these. They're just
581. 16:04hidden in plain sight. And the issue is
582. 16:06sometimes it takes someone from the
583. 16:07outside to to see this. There's a
584. 16:09Yiddish saying that I like a lot, which
585. 16:10is your mouth is an inch below your
586. 16:12nose, but sometimes you need someone
587. 16:13else to tell your breath smells. We're
588. 16:14so close to our own businesses as
589. 16:16entrepreneurs. I'm not saying I'm immune
590. 16:17to this. You have your own banner
591. 16:18blindly. Like you're so in the weeds,
592. 16:20it's hard to zoom all the way out and
593. 16:21think, "Huh, man, this is a lot of work.
594. 16:24This is a fire. But if I just did that,
595. 16:25if I just poked over here, this will
596. 16:27give me a huge return and make all the
597. 16:28work that I'm doing right now
598. 16:29irrelevant." Many of you might be
599. 16:31laughing that Ashley had such a big gold
600. 16:33mine she was ignoring. You and me have
601. 16:35these issues within our own businesses.
602. 16:36And so sometimes we chase new
603. 16:38opportunities without tapping into
604. 16:39something that's already right in front
605. 16:40of us with massive potential. You do
606. 16:42something once, it works, and instead of
607. 16:43doubling down, you chase the new thing.
608. 16:45And this is super common, especially the
609. 16:46smaller you are. This is a perfect
610. 16:48example of more then better than new. So
611. 16:52why do so many business owners fail to
612. 16:54tap into their kind of like obvious gold
613. 16:55mines? Honestly, I think it's because
614. 16:56they're distracted. It's just there's so
615. 16:58many things that are going on in the
616. 16:59business. And typically when you're a
617. 17:00smaller business, you're managing not
618. 17:02only acquisition, you're managing
619. 17:03pricing, you're managing delivery,
620. 17:04you're managing clients, you're managing
621. 17:05employees. There's all these things that
622. 17:06are going on. Sometimes it's hard to
623. 17:07think strategically and think, where do
624. 17:09I get the biggest bang for buck? If I
625. 17:11could only do one thing to double my
626. 17:13business this year and it had to double
627. 17:15the business, what would I do? Great.
628. 17:16Why am I doing anything that's not that?
629. 17:17So sometimes these questions kind of
630. 17:18open your mind, but you have to ask them
631. 17:20from the outside when you have a little
632. 17:22bit of space. That was the problem. So
633. 17:24what was the solution? This is what we
634. 17:25did to scale her affiliates. We didn't
635. 17:27change the play at all. We just ran it
636. 17:29way harder. The first step we did was we
637. 17:31was build the list. So if you're
638. 17:32following along, you're like, "Oh, I
639. 17:33could do this." Yeah, you could.
640. 17:34Everybody can build a list. All right,
641. 17:36so we expanded the affiliate avatar
642. 17:37beyond just matchmakers because let's
643. 17:39face it, there's probably not 100,000
644. 17:41matchmakers in one city. There might be
645. 17:4220 or 50 or 100 or 300, but there's not
646. 17:45an unlimited amount, right? What other
647. 17:47types of businesses would have this type
648. 17:49of prospect in this particular moment of
649. 17:51the buying cycle? And this is key. She
650. 17:53identified when we had our conversation
651. 17:54that it's like divorces or single people
652. 17:57who are executives who have never found
653. 17:58love or sometimes it's wives who feel
654. 18:01like they and their husbands don't dress
655. 18:04according to their social status or
656. 18:05their perceived social status. We
657. 18:07expanded it to private social clubs,
658. 18:09executive coaches, high-end personal
659. 18:11trainers, divorce attorneys. All of
660. 18:13those are people who own a business that
661. 18:16contain the ideal avatar for Ashley's
662. 18:19business. Ashley could serve their
663. 18:20clients and make them look good in the
664. 18:21process. And the beauty of this is that
665. 18:23she's not competitive with them, right?
666. 18:24Like a divorce attorney there doesn't
667. 18:26lose anything by referring their divorce
668. 18:28client over to Ashley to look better and
669. 18:30feel better. If anything, it's a
670. 18:31benefit. That list is not exhaustive,
671. 18:33but it was a great place for her to
672. 18:34start. And for you, if you're looking at
673. 18:36your business, we just have to think
674. 18:37what other businesses sell to our
675. 18:38customers. And everyone typically goes
676. 18:40to my competitors aren't going to bring
677. 18:42those people over. Yeah. But there's a
678. 18:43ton of businesses that are adjacent. And
679. 18:45this is also one of the strongest
680. 18:46reasons of staying focused in your
681. 18:48business. If you try to do all things
682. 18:49for all people, you also can't partner
683. 18:51with anyone. And so if you stay very
684. 18:53focused on one specific avatar and
685. 18:55selling them one very specific thing,
686. 18:57then you can go to other people who sell
687. 18:58something different and then you guys
688. 18:59can work together. And so one of the
689. 19:01ways that she did this is she would hold
690. 19:02these events that then benefit all of
691. 19:03their customers because it's all these
692. 19:05divorces that would want to meet other
693. 19:06divorces because they're all now
694. 19:07recently single. And so you have this
695. 19:09kind of meetup thing that she could
696. 19:10sponsor and adds value to the divorce
697. 19:11attorney and also it works as a way for
698. 19:13her to solicit new customers. Win-win.
699. 19:15First thing we did was build the list.
700. 19:16The second thing we did was send the
701. 19:19darn emails. So I gave her the goal of
702. 19:2210xing her existing volume. So she had
703. 19:24done 40 over her lifetime. I said, "Why
704. 19:26don't you do 400 in 30 days?" 40 emails
705. 19:28generated six high leverage partners.
706. 19:29Then 400 might be able to get us 60. If
707. 19:32she had 60 high leverage partners, you
708. 19:33can do the math on that. It would be a
709. 19:34lot. And so she committed to sending the
710. 19:3620 out outreach messages per day. No
711. 19:39fancy software. Literally just on her
712. 19:41email, just sending it out. Keep it
713. 19:43simple. The third thing we did was
714. 19:45activate and retain because affiliates
715. 19:47you have to treat like customers. And
716. 19:50this is where people go wrong with
717. 19:51affiliates. Like no one's going to do
718. 19:52that work for you. You have to work it.
719. 19:54You have to work them. You have to work
720. 19:55the relationship. So it becomes much
721. 19:57more like enterprise farming sale. So
722. 20:00there's hunters and there's farmers. Uh
723. 20:01so it's more of a relationship manager,
724. 20:03but you basically need someone and
725. 20:04sometimes that's you to continue to farm
726. 20:06the relationship to keep them activated,
727. 20:08keep them engaged, keep them retained so
728. 20:10they keep sending you customers every
729. 20:12single month. And so you want to think
730. 20:13about them as nodes of customers, 20
731. 20:15people that I need to hit them up
732. 20:16regularly so I can provide value to
733. 20:18them, buy them dinner, host events for
734. 20:20their customers, all these things to
735. 20:21remind them to keep you top of mind. So
736. 20:23why is this so powerful? Affiliates will
737. 20:25keep selling for you. They are a
738. 20:27recurring customer generator and they'll
739. 20:28send you a few leads a month or
740. 20:30sometimes hundreds of leads a month that
741. 20:31have demonstrated they're already
742. 20:33willing to pay for similar services. So
743. 20:34they're most qualified. They're just
744. 20:36like warm referrals passed on to you.
745. 20:38The likelihood that you close these
746. 20:39prospects super high intent is very
747. 20:41high. If you're like, "Man, this sounds
748. 20:42kind of interesting. I would love to
749. 20:43have an army of affiliates just sending
750. 20:45me customers." Like, she only had six.
751. 20:46That was a third of her business. If she
752. 20:48had 60, my god, it would be a lot
753. 20:49bigger. And so, I wrote an entire
754. 20:51chapter on this in the $100 million
755. 20:52leads book. It starts on page 227. And I
756. 20:54give you the list inside of the book of
757. 20:55exactly what to do step by step to set
758. 20:57up an affiliate army. I've grown
759. 20:59multiple businesses where affiliates
760. 21:00were the largest uh source of business.
761. 21:02School is one of them. More recently,
762. 21:05Allen, my software business before that,
763. 21:06Prestige Labs, our supplement company,
764. 21:08all of those built up affiliates. So, I
765. 21:09feel very confident in talking to you
766. 21:11about this. But this is the quick and
767. 21:12dirty. So number one, find your ideal
768. 21:14affiliates. That was that list. Number
769. 21:15two, you have to make them an offer. So
770. 21:17for her, it was like, can we can I throw
771. 21:18events for your customers? I'm going to
772. 21:20pay for it. That makes them look good
773. 21:21and gives you an ability to to sell
774. 21:23them. Number three, qualify the
775. 21:24affiliates because you want to make sure
776. 21:26that they're actually like good and they
777. 21:27have your right audience. Number four,
778. 21:29figure out what to pay them or
779. 21:30compensate them in whatever way.
780. 21:31Sometimes it's like, I'm going to do
781. 21:32stuff for your customers that'll make
782. 21:33you look good. Sometimes it's I'm going
783. 21:35to bundle an element of what I sell into
784. 21:37your core offer so you can charge more
785. 21:38for your core services. or my thing can
786. 21:41be an upsell that I give you 100% of the
787. 21:42cash on or you can sell my thing and
788. 21:44I'll give you some percentage of it. All
789. 21:45of those are different ways to structure
790. 21:47these affiliate agreements. I talk more
791. 21:48about it inside the book. But once you
792. 21:50figure that out, then you just got to
793. 21:51get them advertising and keep them
794. 21:52advertising. The getting them
795. 21:53advertising is how do we launch this
796. 21:55relationship? Because typically they're
797. 21:56going to have an existing base. How do
798. 21:57we promote this new partnership together
799. 21:59so everybody wins? And then once that
800. 22:01launch occurs, we want full integration.
801. 22:03So how do we make sure that month after
802. 22:04month they're sending you customers? And
803. 22:06so most people spend $10,000 a month on
804. 22:08ads and completely ignore affiliates
805. 22:09that might bring way higher returns. And
806. 22:11so Ashley was already doing it. She just
807. 22:13needed to scale it. And so we first
808. 22:14fixed Ashley's leaky funnel. Then we
809. 22:16took advantage of the huge affiliate
810. 22:18opportunity that she had in front of
811. 22:19her. And now we're going to fix pricing,
812. 22:20which is problem number three. She had
813. 22:22some big pricing inefficiencies. Her
814. 22:23clients were high income. She served CEO
815. 22:26CEOs, socialites, frequent flyers,
816. 22:28people who could afford outcomes, not
817. 22:30hours. But her pricing model didn't
818. 22:32really reflect that. and she was
819. 22:33charging a onetime $8,500 onboarding fee
820. 22:36and then offered either the $2,000 a
821. 22:38month for ongoing styling or $4,500 a
822. 22:40quarter. So solid numbers, especially
823. 22:41for a boutique high touch service. But
824. 22:43when I dug into her existing clients,
825. 22:44most of them weren't actually paying
826. 22:45those rates. They were grandfathered in
827. 22:47at $1,500 a quarter or less. Worse, the
828. 22:50website and intake process didn't
829. 22:51clearly set those expectations. And so
830. 22:53there was no pricing revealed until
831. 22:55after the call. No mention of tiers, no
832. 22:57mention of value framing. This is
833. 22:58supposed to be a premium experience, but
834. 23:00it was being delivered like a commodity.
835. 23:01This happens a ton, by the way. Like a
836. 23:04lot of businesses like want to be
837. 23:05boutique, but then the sales process
838. 23:07completely breaks the frame. If I could
839. 23:08give you one word for what your sales
840. 23:10process should look like. It's
841. 23:11congruent. If you are high-end, your ad
842. 23:13should look high-end. The lead magnet
843. 23:15should look high-end. The people you're
844. 23:16qualifying should look high-end. The
845. 23:17price point should be high-end, and then
846. 23:19the product and service should be high.
847. 23:20Everything has to fit. And if it
848. 23:22doesn't, it'll break the frame, and
849. 23:23immediately something feels off, and
850. 23:24it'll plummet your conversion rates. And
851. 23:26so, when I asked her how many clients
852. 23:28were actually opting into the $2,000 per
853. 23:30month, she said only a couple. so far,
854. 23:32which wasn't surprising altogether. And
855. 23:33so the question is like why wasn't she
856. 23:35getting upsells? Number one is she had
857. 23:36recently changed this price. So that was
858. 23:38for sure a factor. It's also pretty
859. 23:40common that as a business expands,
860. 23:42especially when you're smaller, that you
861. 23:43don't charge enough upfront cuz you just
862. 23:45want to get going. And that's okay. It's
863. 23:47normal. But in time, you start looking
864. 23:48at your margins and you're like, you
865. 23:50know what, maybe I can expand this. Now,
866. 23:51to be clear, she had 42% margins. Not
867. 23:53bad. I mean, that's probably pretty
868. 23:55good. There's no issues there. I never
869. 23:56limit myself on like, oh, these are good
870. 23:58margins, therefore I should not make
871. 23:59more money. by all means make more.
872. 24:01There are no rules. The thing that she
873. 24:03was missing was two things. Number one,
874. 24:04she didn't have a price anchor, which
875. 24:06would dramatically affect the take rates
876. 24:07on that back-end offer. And number two
877. 24:09is she didn't have a frictionless upsell
878. 24:10from her main offer into continuity. So,
879. 24:12she was selling the $8,500 thing pretty
880. 24:14okay. She just wasn't getting as many as
881. 24:16she wanted into the continuity, which is
882. 24:17the real value of the business. The
883. 24:18first thing we did is we introduced a
884. 24:20highest tier continuity option that
885. 24:22would make the existing $2,000 a month
886. 24:25or $4,500 per quarter seem reasonable by
887. 24:27comparison. And so even if only 10% of
888. 24:29the people took that high-end offer when
889. 24:31that high-end offer is 10 times as
890. 24:33expensive, it's it still effectively
891. 24:35doubles the revenue of the business. And
892. 24:36for everybody else, it makes the normal
893. 24:39price, which was once the most expensive
894. 24:41price, feel like a deal. Now, if you
895. 24:42want a pro tip on this, if you don't
896. 24:45really plan on selling a lot of your
897. 24:47price anchor, what you do is you want to
898. 24:49have it be as similar as possible to
899. 24:51your core offer and only change one or
900. 24:53two things that most people don't care
901. 24:55about. Now, the richest customers will
902. 24:57always just want to buy the most
903. 24:58expensive thing, but for everyone else,
904. 24:59they'll see, wait, there's a dramatic
905. 25:00price difference. It's a very small
906. 25:02feature difference. This is now a steal
907. 25:04comparatively. So, we set the frame and
908. 25:06then we operate within that frame. So,
909. 25:08the second thing we did after the anchor
910. 25:10was a back end. And not only did we have
911. 25:12the backend because you already had
912. 25:13that, we actually made it default. All
913. 25:15right. So, how do we make it the default
914. 25:17option? So, one of the I remember the
915. 25:18first time I learned about this ages and
916. 25:20ages and ages ago was in a book that
917. 25:22talked about a one country that was able
918. 25:24to get like 70% plus of their citizens
919. 25:26to opt into being donors. And every
920. 25:29other country was at like less than 10%.
921. 25:31And the main thing that country did was
922. 25:33ask people to opt out of being an organ
923. 25:36donor rather than every other country
924. 25:37that asked the people to opt in. And so
925. 25:39basically customers have a customers
926. 25:41humans have a default bias which is if
927. 25:44they think this is the thing that most
928. 25:45people do they will typically do that
929. 25:47because crowd mentality herd mentality
930. 25:50keeps you safe. If everyone's doing it
931. 25:53it is already tested they're all alive.
932. 25:55It is lower risk for me to continue to
933. 25:56do what everyone else is doing. Not the
934. 25:58best recipe for outsiz returns but a
935. 26:00very good recipe and reasonable for
936. 26:02decreasing risk. And so we want them to
937. 26:05decrease risk by buying. So instead of
938. 26:07repitching continuity from scratch, we
939. 26:09just positioned it as the next natural
940. 26:10step after onboarding. So you've already
941. 26:12invested in your transformation, let's
942. 26:14make sure it sticks. And so often times
943. 26:16the best thing to upsell people, by the
944. 26:18way, if you're like, "What do I upsell
945. 26:19on my back end?" Here are my two
946. 26:21favorite ones that you can use all the
947. 26:22time because they only always work. It's
948. 26:24more of that thing they just bought or
949. 26:25more help with that thing they just
950. 26:26bought. They work exceptionally well.
951. 26:29And what you want to do with this is you
952. 26:30want to have an assumed close here. This
953. 26:31is how we've always done it. This is how
954. 26:33this normally works. We had the price
955. 26:34anchor that we reintroduced. We made the
956. 26:36back in the default. And the third thing
957. 26:37we did is we push price. Now you might
958. 26:39have heard Ashley's original price is at
959. 26:418,500. She's already priced so high. Why
960. 26:43would she raise prices? So there's this
961. 26:45thing in economics called a Vlinin good.
962. 26:46Vlin good is a good where when you
963. 26:48increase the price it actually increases
964. 26:49the value which is especially common in
965. 26:51luxury items. If people know, especially
966. 26:53if people know that something costs a
967. 26:55lot of money, they will then want it
968. 26:57more. Isn't always the case, but
969. 27:00sometimes it is. And in other cases, you
970. 27:02can just raise the price and it just
971. 27:04changes nothing about the conversion
972. 27:05rate. The easiest way to make more money
973. 27:06in any business is charge more for the
974. 27:08exact same thing, provided around the
975. 27:10same number of people take it. Here's a
976. 27:11pro tip for context. The point of
977. 27:13maximum profit is after the point of
978. 27:16maximum conversion. This should seem
979. 27:17obvious, right? You made it for a
980. 27:18dollar, she could get more people to buy
981. 27:20than if she didn't. Now, in her
982. 27:21particular case, it might be so cheap at
983. 27:23a dollar that few people would even
984. 27:24believe it was good. So, that gets into
985. 27:25a different issue of pricing. But within
986. 27:28the context of in general price, supply
987. 27:31and demand, typically as supply shrinks,
988. 27:33the price will move, right? Given the
989. 27:34fact you're selling to luxury people,
990. 27:36luxury buyers don't want the cheapest
991. 27:38option. They're literally trying to look
992. 27:40better than other people. They want the
993. 27:42best. But if you don't give them a
994. 27:43premium path, they'll just default to
995. 27:45the lowest tier. So, we had to make that
996. 27:46path for work. What we did by reframing
997. 27:48the offer and adding in the anchor and
998. 27:50tightening the handoff from onboarding
999. 27:51into continuity, Ashley could boost LTV
1000. 27:54on the back end and be able to slowly
1001. 27:55continue to push her prices until people
1002. 27:57weren't going to buy or until the point
1003. 28:00where she was making less money than she
1004. 28:01was at a lower price. But the thing is,
1005. 28:03in my experience, there's so much more
1006. 28:05room here because think about it like
1007. 28:06this if it were a curve. Most people
1008. 28:08will try and be here where they have
1009. 28:09like, let's say, maximum yeses. But the
1010. 28:11thing is is that sometimes the maximum
1011. 28:13gross profit is here. This is a bad line
1012. 28:14to illustrate the point, but your nos
1013. 28:16are going to increase and your yeses
1014. 28:18will decrease. But if the price here is
1015. 28:203x this price and you're getting half
1016. 28:22the yeses, you make more money. And so
1017. 28:25far, just key takeaways. So number one,
1018. 28:27we fixed the funnel first. She was
1019. 28:28already doing two to threex. So we had
1020. 28:30to added in the VSSL, the lead magnet,
1021. 28:32and we qualified her leads. So that was
1022. 28:34the first thing we did to improve the
1023. 28:35conversion rate on the funnel itself,
1024. 28:37all automated, which I think could give
1025. 28:38her 2 or 3x there. We also fixed the
1026. 28:40headline. Again, that's an estimate, not
1027. 28:42a guarantee that's going to happen for
1028. 28:43her, but that's my estimate. The second
1029. 28:44thing we did is we doubled down on the
1030. 28:46huge missed opportunity she had, which
1031. 28:47was that she had one-third of her
1032. 28:48business coming from six affiliates. And
1033. 28:50so, we got her to build the list, commit
1034. 28:52to sending 20 emails a day, and then
1035. 28:53afterwards activate and retain them by
1036. 28:55giving them high value that she could
1037. 28:57deliver to their customers that they
1038. 28:58would get credit for. And then third, we
1039. 29:00continue to push pricing. And in order
1040. 29:01to do that, we reestablished a price
1041. 29:04anchor. We made the backend default so
1042. 29:05we could increase LTV. and she committed
1043. 29:07to continually increasing price until
1044. 29:09her conversion rate dropped such that
1045. 29:10she made less overall money. Now the
1046. 29:12business could attract more customers,
1047. 29:14convert them better and retain them
1048. 29:16longer and price higher with higher
1049. 29:17gross profit. And so if you want to see
1050. 29:19the full video of Ashley's reaction to
1051. 29:20this guidance, you can check it out