How I'd Use Education to Sell the Main Offer — Transcript

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1. 0:00Uh, my name's Nick. I sell salon
2. 0:01coaching and business solutions to salon
3. 0:03owners.
4. 0:04>> Okay.
5. 0:04>> I'm doing just about 2 million a year in
6. 0:06revenue. I would like to be at 100
7. 0:08million a year in revenue
8. 0:09or evaluation.
9. 0:11>> Okay.
10. 0:11>> And what stopped me was I actually own
11. 0:13hair salons, too.
12. 0:14>> Very different.
13. 0:15>> [laughter]
14. 0:16>> Uh, I own hair salon, so I talked to Ed.
15. 0:17I got the line of permission, so those
16. 0:19got to go.
17. 0:20>> Wait, what was the other business?
18. 0:22>> Hair salons. I own brick and mortar.
19. 0:23>> Okay, so you have brick and mortar and
20. 0:24you Yeah, yeah.
21. 0:25>> I'm doing a thing and I'm coaching a
22. 0:26thing.
23. 0:26>> Yeah, yeah.
24. 0:27We don't want to leave money on the
25. 0:28table.
26. 0:28>> Got it. So, my coaching offer that's
27. 0:31where it gets tricky.
28. 0:32>> Okay.
29. 0:32>> So, I coach you, I help you, you're
30. 0:34doing great. It's like done for you.
31. 0:36Well, teaching how to do it and you're
32. 0:37like, it's too much for me, so I'll do
33. 0:38SEO for you. Then I'll build you a
34. 0:39website.
35. 0:40>> Yeah.
36. 0:40>> But, the website's like a main like the
37. 0:43main source of how I track clients. So,
38. 0:45I do it on the back end of retail. So,
39. 0:46instead of someone looking for a
40. 0:47haircut, I sell a popular brand. So,
41. 0:50TikTok was viral with like Amika. So, I
42. 0:52just set a shopping campaign up a
43. 0:54shopping campaign up for Amika. They
44. 0:56find Amika.
45. 0:57>> Amika?
46. 0:58>> What is a hair line? Like a hair
47. 0:58product.
48. 0:59>> Got it. Sorry.
49. 0:59>> Color wow.
50. 1:01You should know.
51. 1:01>> Of course.
52. 1:03>> And so, now they're in my world. So, I
53. 1:04can retarget on meta, retarget on
54. 1:05Google. They buy the product. I put a
55. 1:07gift card in the box. They're down the
56. 1:08street. They become my service client
57. 1:10now.
58. 1:11So, I teach them that. But, they're
59. 1:12like, how do I build a website? I'm
60. 1:14like, oh, I'll do that for you, too, for
61. 1:15more money. So, my money model is like
62. 1:18where I'm kind of confused at my scale.
63. 1:20>> All right, hold on. I'm going to say it
64. 1:21say it back. Um,
65. 1:24you help salon owners
66. 1:26>> Yeah.
67. 1:27>> build out e-commerce stores.
68. 1:29>> No, that's what it's kind of turning
69. 1:30into.
70. 1:31I coach them like leadership, marketing.
71. 1:33>> Yeah.
72. 1:33>> I'm like, oh, this is how I built my
73. 1:34salon.
74. 1:35>> of getting customers though that you
75. 1:36show them
76. 1:37>> Yes.
77. 1:37>> is to sell product
78. 1:39online,
79. 1:41call the leads up,
80. 1:43and then bring them into their salon.
81. 1:44>> Pretty much. Or put a gift card in the
82. 1:46box and then retarget with the email.
83. 1:47>> That's the prime but like that's the
84. 1:48that's the that's the hot trick.
85. 1:50>> That's how I did it, yeah.
86. 1:50>> Yeah, got it. Okay.
87. 1:53Um,
88. 1:54and so, you have your salon. What's your
89. 1:56salon's revenue?
90. 1:57>> Uh
91. 1:58one is just a bit shy of a million. The
92. 2:00other one's like 500,000 and 500,000.
93. 2:02>> So, you have three. Got it. And then
94. 2:04>> five. I sold two after watching the
95. 2:05video on YouTube.
96. 2:06>> Got it. Okay. So,
97. 2:09>> [laughter]
98. 2:10>> You're good.
99. 2:11Started with five, down to three.
100. 2:13>> Yeah.
101. 2:13>> You have the coaching business which
102. 2:14does 2 million?
103. 2:16>> No, that's like 700,000.
104. 2:18>> Got it. Okay. Um
105. 2:20>> But the margins are way better. I like
106. 2:21it a lot more.
107. 2:22>> Okay. Yeah, yeah. All right.
108. 2:25All right. [snorts] So,
109. 2:32what's the issue? Just that it's a lot
110. 2:34of work to do the strategy that you
111. 2:36teach?
112. 2:39>> No, the offer is like I'm like here.
113. 2:42It's easy to build a Shopify store.
114. 2:44>> Yeah.
115. 2:44>> They're like, "I don't want to [ __ ]
116. 2:45do it."
117. 2:45>> Of course.
118. 2:46>> "Can you do it for me?" I'm like, "Of
119. 2:48course I could."
120. 2:49>> Yeah.
121. 2:49>> For extra money.
122. 2:50>> For money. Yeah.
123. 2:51>> And then they're like, "Oh, I can't do
124. 2:52SEO." I'm like, "I'm teaching you how to
125. 2:54do it. It's not hard."
126. 2:54>> Code hooked it up today.
127. 2:56>> Yeah.
128. 2:56>> So, they're like, "What are you saying
129. 2:57to me? Can you just do it?"
130. 2:58>> Mhm.
131. 2:59>> So, now I have like this agency type
132. 3:00model. Like, "Done. I'm already done
133. 3:01with you."
134. 3:02>> Okay.
135. 3:03>> Like, I want to really scale this. So, I
136. 3:04want to know it.
137. 3:07They stay.
138. 3:08>> Okay. That's nice.
139. 3:09>> Yeah.
140. 3:10>> Great.
141. 3:10>> great testimonials.
142. 3:12>> Okay. What's what's churn though besides
143. 3:13they stay?
144. 3:16>> I would probably say like I keep 80%.
145. 3:18>> Per
146. 3:19>> Per 10 like out of 10 people, eight will
147. 3:21stay.
148. 3:22>> Per year?
149. 3:23>> Per year, yeah.
150. 3:23>> Okay, got it. Thank you. Um Okay. So,
151. 3:25you have 80% revenue retention or rather
152. 3:27logo retention over an annual basis.
153. 3:29>> Mhm.
154. 3:30>> Um you're building out these stores for
155. 3:32them. And so, what stops you What is the
156. 3:34limiter of you building out stores? So,
157. 3:36I'm guessing you getting customers is
158. 3:38not the hard part.
159. 3:39>> I wasn't leading with that offer.
160. 3:40>> Okay.
161. 3:40>> I'm thinking like should that become my
162. 3:41main offer?
163. 3:42>> it sounds very interesting. It's the
164. 3:43first time I've heard of that offer.
165. 3:44>> And then how do I get continuity with
166. 3:45that offer cuz I now it's just like one
167. 3:47flat fee and then I'm stuck.
168. 3:48>> the store and you have to manage the
169. 3:49SEO.
170. 3:52>> So, then I was thinking
171. 3:54I was listening to our leads and our
172. 3:55offers last night 3:00 in the morning.
173. 3:58And then I heard you talking about what
174. 3:59you did for Jim Watch. So, I'm thinking,
175. 4:01oh, let me do 16 weeks or, you know, 10k
176. 4:04for 4 months, build it out. Oh, you want
177. 4:05to stay with me. Yeah.
178. 4:07>> I think that works great.
179. 4:08>> All right, cool.
180. 4:09>> Yeah. Um
181. 4:11that
182. 4:13What
183. 4:14What's the problem?
184. 4:16Cuz that sounds like that you're like,
185. 4:18I'm selling people, they want this
186. 4:19thing. I say I'll do it in exchange for
187. 4:21money. They say yes.
188. 4:22>> I have salons in the beginning cuz I'm
189. 4:23running those and I'm doing this and I'm
190. 4:25getting distracted.
191. 4:26>> Okay. If you got let's magic marker
192. 4:28this. If you got rid of the three salons
193. 4:30>> Yeah.
194. 4:31>> do you think you could replace the net
195. 4:32income from those three salons with this
196. 4:34business?
197. 4:34>> Yeah.
198. 4:35>> Okay. How long would it take you?
199. 4:38>> Honestly, probably like 6 months.
200. 4:39>> Okay. So, do you think
201. 4:41>> Yes, I have no sales team either. So, I
202. 4:43literally sell in the DMs.
203. 4:44>> Yeah, yeah.
204. 4:44>> Yeah.
205. 4:45>> We'll get to that. But, like
206. 4:47if you got your attention back because
207. 4:49you sold these
208. 4:51your story will be, I had five
209. 4:53locations, I successfully sold them, and
210. 4:55I will show you the model that I used to
211. 4:57scale mine.
212. 4:58Same way. But, the nice thing that you
213. 5:00have, which is what's really tricky with
214. 5:02education, which is the business you're
215. 5:03in,
216. 5:04um is the stickiness. That is the hard
217. 5:07part. So, you actually have solved the
218. 5:08hardest part of an education business.
219. 5:11So, like you have huge potential. Uh
220. 5:14just don't get distracted with this
221. 5:16other thing cuz now you actually have a
222. 5:17vehicle that everybody wants and they
223. 5:20don't stop paying for.
224. 5:22>> I was way under priced, too.
225. 5:23>> Yeah. Well, like we we'll keep going
226. 5:25until we see some issues. But, yeah. It
227. 5:28sounds like you have a good thing on on
228. 5:29your hands.
229. 5:29>> So, should I lead with the full package
230. 5:32rather than just coaching the upsell?
231. 5:34Or
232. 5:35>> You're talking about plane flights, not
233. 5:36Hawaii.
234. 5:37>> Okay.
235. 5:38>> They care about Hawaii. They want their
236. 5:39business to grow. The vehicle that you
237. 5:41use to get them there is is probably not
238. 5:43that relevant. It'll be 30 seconds of
239. 5:45your quote pitch around it being your
240. 5:47unique mechanism, but besides that it's
241. 5:49not going to matter.
242. 5:51>> Okay.
243. 5:51>> Do you know what I'm saying?
244. 5:52>> Yeah, and then on
245. 5:53>> They just want to grow.
246. 5:54>> One more caveat.
247. 5:55>> Yeah.
248. 5:55>> They can't fulfill.
249. 5:57>> So Okay, so you could centralize the
250. 5:58delivery.
251. 5:58>> yeah, we do that.
252. 5:59>> Yeah, I think that's fine.
253. 6:00>> All right, cool.
254. 6:01>> Yeah, and then
255. 6:01>> didn't want to be too spread out.
256. 6:03>> Well, you are too spread out, but if we
257. 6:05make the decision to get rid of the
258. 6:06three salons, this business makes a lot
259. 6:08of sense to me. You have a way a novel
260. 6:10way, which requires some tech and some
261. 6:13other elements that I see as kind of
262. 6:14competitive modes. If you just have pure
263. 6:15information, it's very easy to copy,
264. 6:17it's very easy to dilute down, blah blah
265. 6:18blah. But because you are delivering an
266. 6:20actual service, and you're delivering
267. 6:22physical products to the customers, both
268. 6:25of those have some elements of stick
269. 6:26that education doesn't. But you're using
270. 6:28So like what's amazing about education
271. 6:30businesses is that you can acquire
272. 6:32customers really easily, and there's
273. 6:33lots of gross margin. The downside of
274. 6:35education is that it's not sticky at
275. 6:37all, and people leave, right? And that's
276. 6:38it's supposed to be that way, you're
277. 6:39supposed to learn and then leave and
278. 6:40graduate. That's how education works.
279. 6:42And so
280. 6:43we want to use it's ham and garlic,
281. 6:44right? It's like we want to use the
282. 6:45education to get them in, but then your
283. 6:47monetization uh mechanism, unique to
284. 6:50you, which is very cool, is that you
285. 6:51have something that's really sticky.
286. 6:53Now, we just have to tweak the pricing
287. 6:54to make sure gross margins are right,
288. 6:55but otherwise you have something that's
289. 6:57easy to sell, and they never leave,
290. 6:59which is like
291. 7:01cool.
292. 7:02Great.
293. 7:03So I think I think you just need to make
294. 7:04a little bit of like a who do I want to
295. 7:06be when I grow up. If you're clear that
296. 7:08this is the direction you want to be in,
297. 7:09and you think you can replace your net
298. 7:10income in 6 months in that business,
299. 7:12then do it.
300. 7:14Like I think you're you're straddling
301. 7:15the line because you've spent probably
302. 7:16however many years building, you know,
303. 7:17figuring all this stuff out, and it feel
304. 7:19it's hard to get rid of, you know, five
305. 7:21stores. Uh
306. 7:23but
307. 7:25>> The uh like the uh the service part of
308. 7:26it, like a done-for-you, was just thrown
309. 7:28in my lap. So I was like, am I getting
310. 7:29distracted by doing that?
311. 7:31>> I don't think you are
312. 7:32>> Okay.
313. 7:33>> because of the revenue retention. If you
314. 7:35had said they churn out uh at like a
315. 7:37high rate, I would have said screw that,
316. 7:39just stick with the high high margin
317. 7:40education, we'd have a different
318. 7:41conversation. But because you have 80%
319. 7:44logo retention in a SMB audience, and
320. 7:47there's zillions of them, that is very
321. 7:49interesting.
322. 7:50And so, I would say, "Great, there's a
323. 7:52zillion of them. It's a way hard ticket.
324. 7:53Do as much of that as you can." I was I
325. 7:55kept asking like, "What's the
326. 7:56constraint?" cuz I was waiting for you
327. 7:57to say like, "I can't build that many of
328. 7:59those stores." But it doesn't seem like
329. 8:01it's that complicated to do. Right. And
330. 8:04so,
331. 8:05>> [laughter]
332. 8:06>> Just [ __ ]
333. 8:08>> Like, I think you're just sit You're
334. 8:09straddling the edge.
335. 8:10>> Interesting to jump.
336. 8:11>> Yeah.
337. 8:12>> And pricing, too, I got to figure out.
338. 8:13But I got your book, so.
339. 8:14>> More is probably a good place to start.
340. 8:16But I would say, before you [ __ ] with
341. 8:17any of that stuff, get rid of the three
342. 8:19stores. And I would say, do not obsess
343. 8:21about the valuation and what you could
344. 8:24get, and you know what? I'm going to
345. 8:24tweak it, get it ready, cuz the the
346. 8:26short story that I'll tell you is when I
347. 8:29had six gyms, I was in a similar
348. 8:30situation.
349. 8:31Um
350. 8:32I thought the launch business was going
351. 8:34to be
352. 8:35like I I could see the writing on the
353. 8:36wall. I was like, "This is going to be
354. 8:37big." And so, I fire-sold six locations
355. 8:42in 90 days.
356. 8:44Like I I sold it for parts. I think I
357. 8:45sold it I sold six for the price of like
358. 8:49one and a half. Like I really just gave
359. 8:51them away of like, "If you'll take the
360. 8:52lease over, I'm out." I didn't care. And
361. 8:55then, within 6 months, you know what she
362. 8:56was doing? A million a month.
363. 8:57And so,
364. 8:59that's not normally what happens, but in
365. 9:02with your background, your expertise,
366. 9:04the narrative, and the fact you already
367. 9:05have a proven offer. So, we already know
368. 9:07the thing that converts, and we already
369. 9:08know it sticks.
370. 9:11To me, that's like a I don't normally
371. 9:12give this advice, but yeah, I would just
372. 9:14like just make the jump.
373. 9:15>> So, for continuity purposes, get them in
374. 9:174 months. Hey, you want to stick around?
375. 9:20>> Well, of course they're going to want to
376. 9:20stick around cuz it's like, "Oh, yeah,
377. 9:21you So, you got all the SEO and the
378. 9:22store management and the and the
379. 9:23products?" They're like, "No." And
380. 9:25you're like, "Great, just keep paying."
381. 9:26>> And for the model, I'd do group coaching
382. 9:27with that. Or like It's fine. It's fine.
383. 9:29Same [ __ ]
384. 9:29>> Yeah, just keep it as much leverage as
385. 9:30you can on the front end cuz you're not
386. 9:32having any issues selling it.
387. 9:34Don't sell Like right now, you're about
388. 9:35to go scale, so I wouldn't start
389. 9:36introducing on scalable options.
390. 9:38>> Okay, cool.
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402. 9:55business owner, appreciate you and
403. 9:57enjoy.