How I'd Escape a Commoditized Market — Transcript

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1. 0:00All right. So, I have a school community
2. 0:03where I help fishing guides grow their
3. 0:05business and I have a question about
4. 0:07cold outreach metrics.
5. 0:10>> Sweet. You help fishing guides grow
6. 0:12their business.
7. 0:14>> Yes.
8. 0:15>> Dude, that is a niche. All right, let's
9. 0:16rock this. All right, so
10. 0:19Okay, and you help them with outreach or
11. 0:20you're doing outreach?
12. 0:22>> I'm doing outreach and I have questions
13. 0:25about my metrics.
14. 0:26>> Okay, go for it. So, what are you What
15. 0:27are you doing outreach on?
16. 0:29>> Yep. So, uh real quick, I have a
17. 0:3130-second spiel and I'll give you my
18. 0:33data here. So, I use Google to manually
19. 0:37find 700 fishing guides' phone numbers
20. 0:40and my money model is essentially to
21. 0:42give away all the information for free
22. 0:44as a decoy offer and then upsell them
23. 0:47into a one-on-one coaching tier.
24. 0:49>> Okay.
25. 0:49>> So,
26. 0:50I I sent them a message asking if they
27. 0:52want a free step-by-step guide to learn
28. 0:55how to get more bookings. About 8% of
29. 0:57them said, "Sure, send it over."
30. 1:00>> Amazing.
31. 1:00>> Then I send them a link to my about page
32. 1:02which which converts at about 15% uh for
33. 1:06that free decoy offer. And then I was
34. 1:08able to get a couple people to pay for
35. 1:11one-on-one coaching which got me to
36. 1:12about a thousand dollars a month, but my
37. 1:14goal is to get to 10,000 a month. So, my
38. 1:17question for you is should be I be more
39. 1:19focused on improving the metrics since
40. 1:23fishing guides is such a small niche or
41. 1:25I just need to be doing more outreach?
42. 1:27>> pun intended. Uh I need a couple quick
43. 1:30stats that I I want to get from you. So,
44. 1:33how much does the average fishing guide
45. 1:34make?
46. 1:37>> The average fishing guide makes probably
47. 1:39about 30 to 50 grand a year in profit.
48. 1:43>> O- o- okay, got it. So, 30K to 50K.
49. 1:46Okay, how many actual fishing guides are
50. 1:48there in
51. 1:50I guess I mean, shoot, is it mostly the
52. 1:52US that you work with?
53. 1:54>> Yeah, there's from what I can find,
54. 1:56there's about 10,000.
55. 1:59>> 10,000, okay.
56. 2:04Okay, how much money can you help them
57. 2:06make?
58. 2:08>> Um well, I've already helped other
59. 2:10people do it. I can usually get them to
60. 2:13about 5K per month in revenue, about 3K
61. 2:17month profit after about the first 3
62. 2:19months.
63. 2:20>> But aren't they already doing that if
64. 2:21they're making 30 to 50K profit
65. 2:23starting?
66. 2:25>> Um well, I when I I mean, they are
67. 2:27already a fishing guide and then I'm
68. 2:29coming in and helping them scale their
69. 2:31business. So, it's not from like
70. 2:33literally zero revenue.
71. 2:35>> So, let me ask this differently. They're
72. 2:37currently making $30,000 a year take
73. 2:39home. You can help them add another 30
74. 2:41to 50. Does that sound correct or is
75. 2:43that too much?
76. 2:52A for A. Hello.
77. 2:59Hello.
78. 3:03I think I think he cut bait. I think I I
79. 3:05think I I think the line snapped.
80. 3:08>> All right, is it working?
81. 3:09>> There we go.
82. 3:11>> [laughter]
83. 3:11>> Reeled him back in.
84. 3:15Okay.
85. 3:16Okay, so did you hear what I said? So,
86. 3:19they're making $30,000. They're You can
87. 3:22How much money do you help them make
88. 3:23more than they're current they're
89. 3:25currently making? $3,000 a month net?
90. 3:27>> Yeah, so so more than they're currently
91. 3:29making, I can usually add about an extra
92. 3:31$2,000 on top of what they're I I guess
93. 3:34the part I forgot to mention is I target
94. 3:36under performing fishing guides.
95. 3:39>> [sighs]
96. 3:41>> Man.
97. 3:44I mean,
98. 3:45you just got to get 10 people to pay you
99. 3:47like 500 bucks, 1,000 bucks a month,
100. 3:49right? That's what you want?
101. 3:52>> Yeah, I think it
102. 3:54>> Yeah, I'll I'll say this, don't tell
103. 3:55yourself that's high ticket.
104. 3:59>> Okay.
105. 4:00>> All right, cuz it's not. It's not high
106. 4:01ticket.
107. 4:03Um
108. 4:04it's medium-ish.
109. 4:06Um but point is this, so there's 10,000
110. 4:09if your goal is to get to $100,000 a
111. 4:10year or 10 grand a month,
112. 4:12um you can absolutely do it within this
113. 4:13vehicle.
114. 4:14Um
115. 4:16if you so you found 700 of them, you
116. 4:18think there's 10,000 of these fishing
117. 4:20guides?
118. 4:22>> Yeah, I've already reached out to 700. I
119. 4:24still have a fresh list with like 900
120. 4:26people who I haven't reached out to yet.
121. 4:28>> How many times are you reaching out?
122. 4:31>> Um to that list of 700, I hit them up
123. 4:33probably like including follow-ups
124. 4:35probably three or four different times.
125. 4:37It's pretty much I've milked them for
126. 4:39about all their worth now.
127. 4:41>> Well, you mean you've done three or four
128. 4:42reach outs in total to the list?
129. 4:45Or each of those reach outs was like a
130. 4:46multi-step attempt?
131. 4:49>> Yes.
132. 4:50>> Okay. So
133. 4:53I'll tell you what I don't like, I'll
134. 4:54tell you what I do like. I do think that
135. 4:55the goal of getting to $10,000 a month
136. 4:57in this niche is to super doable. I
137. 4:59don't think you should reach out to the
138. 5:00people who are underperforming. I think
139. 5:02you should probably reach out to people
140. 5:03who are performing well and maybe learn
141. 5:05from them. Um so that you can provide
142. 5:08more value. So it's like you have a
143. 5:10small amount of people who don't make a
144. 5:12lot of money and you add a kind you got
145. 5:14you add a little bit of money to their
146. 5:15business, right? So if we can like I
147. 5:19would want one of these three things to
148. 5:20change. It's like I would like to have a
149. 5:21lot of people that I can add a little
150. 5:22bit of value. I would like to have a
151. 5:23small amount of people that I can add a
152. 5:24lot of value to. Right now you're kind
153. 5:26of like and also all those people don't
154. 5:28have money to start with. So it's like
155. 5:30we have three things kind of working
156. 5:31against us. We have to fix one of these.
157. 5:33So you can't fix there being more
158. 5:36fishing guides. You can't do that. So
159. 5:37you really just stuck with I can target
160. 5:39people who have more money or I can make
161. 5:40them more money.
162. 5:42Which of them is more more feasible for
163. 5:43you?
164. 5:45>> Right. And my big piece proof that I
165. 5:49have, which is I guess it might be a
166. 5:50limiting belief on why I don't want to
167. 5:52swing out of my weight class, but I am a
168. 5:54fishing guide. I've been running my own
169. 5:55fishing charter business for like the
170. 5:57last 5 years, and I'm at about 5,000 a
171. 6:00month in profit. So,
172. 6:02it feels a little it feels a little
173. 6:04weird to go too far above what I've
174. 6:06actually done.
175. 6:07>> I don't want to tell you to stop doing
176. 6:08the business you're doing. I do think
177. 6:10that like is there like what stops you
178. 6:12from doing going from 5 to like 20?
179. 6:17>> In my fishing charter business, you
180. 6:19mean?
181. 6:19>> Yeah.
182. 6:21>> Um honestly, I
183. 6:25it it's going to sound like a like a bad
184. 6:27answer, I know, but I have all the work
185. 6:29that I want to be able to handle with
186. 6:31that business. Like I'm I'm going to get
187. 6:33burned out if I push myself harder.
188. 6:35>> So, I've got a I got a wild idea.
189. 6:38What if I mean, you know how to generate
190. 6:40demand, right? Cuz I'm guessing that's
191. 6:42how you got this business.
192. 6:44>> What if you charged more?
193. 6:51>> It would have to be pretty significantly
194. 6:53more
195. 6:54because it's
196. 7:00>> My first fear would be that it would be
197. 7:03productized. Like people would compare
198. 7:06prices because there's a lot of other
199. 7:07fishing guides around in my area, too.
200. 7:09>> Yeah.
201. 7:11So, what's the first chapter in offers?
202. 7:13Do you know?
203. 7:16>> I've read it about three times. I should
204. 7:18know, but I don't know off the
205. 7:19>> I'll tell you. The first chapter is
206. 7:21you're selling a commodity.
207. 7:25And so, when you sell a commodity, you
208. 7:26compete on price.
209. 7:28When you sell a Grand Slam offer, you
210. 7:29compete on value.
211. 7:31And so, to become separate from
212. 7:32everybody else in your space, which I
213. 7:34think is worth you learning because if
214. 7:36you're going to
215. 7:38if you're going to help these guys with
216. 7:40their businesses, they're all
217. 7:41commoditized as well. So, you have to
218. 7:43help them out of this commoditized
219. 7:45struggle. Otherwise, they're going to
220. 7:46like fundamentally you're just going to
221. 7:47help them get to a business that you're
222. 7:48currently burned out on. That's going to
223. 7:49feel good, right?
224. 7:52>> Right.
225. 7:53>> Right. So, I kind of want you to fix
226. 7:55your business, which I think if you do,
227. 7:56you will make more money in the short
228. 7:58term and long term.
229. 8:02>> Okay.
230. 8:03>> Which is not the answer that you
231. 8:04expected. Um like the the simple answer
232. 8:08for your current thing, like that if in
233. 8:09terms of degrees of of advice. The
234. 8:11easiest thing to do would be like go
235. 8:13find more leads, reach out to more of
236. 8:15them, and make sure that you're keeping
237. 8:16the one the people you got. You can
238. 8:18charge 1,000 bucks a month. Okay, fine.
239. 8:20That's like the short-term advice.
240. 8:22But the kind of like medium-to-long-term
241. 8:24advice is we have to figure out a way
242. 8:25for you to either target ones that make
243. 8:28more money or help the ones that come in
244. 8:30to make more money. The only way to do
245. 8:32that long term is to actually like make
246. 8:34more money with your own thing or help
247. 8:37the people that you already have far
248. 8:38surpass your existing numbers. Could
249. 8:39they pass your numbers? Could you help
250. 8:41them if they wanted to?
251. 8:45>> Could they pass my revenue numbers you
252. 8:46mean?
253. 8:46>> Yeah, or take over, yeah.
254. 8:49>> Oh, yeah, for sure.
255. 8:50>> Okay, well then why don't you go help
256. 8:52people do that? And then you'll be able
257. 8:53to charge more.
258. 8:59>> I see. Okay, so help fishing guides
259. 9:01surpass my numbers.
260. 9:03>> Help they all beat you. Charge more.
261. 9:05>> Yeah.
262. 9:06>> And if you don't want to go back into
263. 9:07the fishing business, fine. You can
264. 9:08experiment with the customers you have
265. 9:10with a new and better offer. But you
266. 9:12have to be able to sell around a
267. 9:13commoditized pricing structure.
268. 9:15Otherwise, so
269. 9:17let me say this differently cuz I think
270. 9:18this like I want this to really hit for
271. 9:19you and obviously I'm talking to a
272. 9:21zillion other people who are listening
273. 9:22in.
274. 9:23If you sell a commodity, you will be
275. 9:25priced at the point of burnout.
276. 9:29The marketplace is ruthlessly efficient
277. 9:31at getting people to just make enough to
278. 9:33survive and not make enough to thrive
279. 9:35because that's the place where people
280. 9:36will stay and provide a commoditized
281. 9:38good.
282. 9:41So you have to break out of that
283. 9:42otherwise the market will force you.
284. 9:44Capitalism is very efficient. The market
285. 9:46will force you to
286. 9:48give as much as you can for as little as
287. 9:49possible until eventually you can't give
288. 9:51any more for any less. You remember that
289. 9:53chapter in the book.
290. 9:55>> Mhm.
291. 9:56>> And there's nothing left. You are in
292. 9:57that boat right now.
293. 9:59Man, in that boat. I'm like I'm not even
294. 10:01trying on that one. Uh
295. 10:03so we have to decommoditize the offering
296. 10:06that either you or the fishing guides
297. 10:08are teaching or making so that they can
298. 10:11charge twice as much, three times as
299. 10:12much. What else can a fishing guide
300. 10:14provide that other people don't provide
301. 10:17to make the whole experience better? Can
302. 10:18we bundle multiple things in? Can we
303. 10:20sell multiple sessions? Can we bring
304. 10:22food on there? Can we grill the fish
305. 10:24with them and bring a chef so they get
306. 10:26the the full like I I I grilled it on
307. 10:27the side of the boat, threw some lemon
308. 10:29on. I've never had fish better in my
309. 10:30life cuz it's right out of the water.
310. 10:31Right? Like can we create an experience
311. 10:33around this that's more than just like
312. 10:36I'll take you out and you'll catch a
313. 10:37fish or you won't.
314. 10:40>> Oh yeah, there's definitely ways to add
315. 10:42a lot of extras on.
316. 10:43>> Awesome. And fish and people who buy
317. 10:45fishing typically, many of them have a
318. 10:47lot of money.
319. 10:50>> Yeah.
320. 10:50>> Right. So like give them the opportunity
321. 10:53to spend it with you.
322. 10:58>> Yeah, that totally makes sense. And it's
323. 10:59kind of a double whammy because that
324. 11:01helps with the main fishing charter
325. 11:02business and with the school community
326. 11:04to be able to show other people how I
327. 11:05did it. So yeah, it's perfect.
328. 11:08>> Let's do that.
329. 11:10>> Sounds good.
330. 11:11>> All right. Do you feel better?
331. 11:14>> Yes.
332. 11:14>> So this this solves the core issue. Go
333. 11:17fix your business, make a grand slam
334. 11:20offer, charge significantly more so that
335. 11:22you can make more so that you have the
336. 11:25confidence to then show the guys that
337. 11:27you help make way more. If they wait
338. 11:30make way more, guess what you get to do?
339. 11:32Charge more.
340. 11:36>> Yes.
341. 11:37>> And you'll be able to start attracting
342. 11:38people who aren't just, you know, bottom
343. 11:40scrapers. They're the ones who actually
344. 11:41doing okay, but want to do great. Those
345. 11:43are the ones who pay big dollars. People
346. 11:45who are on their last line, they don't
347. 11:46have much. Last line, Jesus. I like
348. 11:49I'm unstoppable today.
349. 11:52Um, does that make sense?
350. 11:53>> Yeah, I get it.
351. 11:54>> All right. Rock and roll. Appreciate
352. 11:56you, man.
353. 11:57If you like this video and you're a
354. 11:58business owner who wants to break
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364. 12:14business owner, appreciate you and
365. 12:16enjoy.