“I’m Closing 10% of My Sales Calls. What Am I Doing Wrong?” — Transcript

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1. 0:00Let's, let's, let's do this. Okay, top
2. 0:02line is 20K a month?
3. 0:04>> Yeah, yeah.
4. 0:05>> Okay, 20K a month, 4K bottom line,
5. 0:06right?
6. 0:08>> Yep.
7. 0:08>> Okay, got it. So, what what are you
8. 0:10selling right now?
9. 0:12>> Uh we're selling client acquisition
10. 0:14services. So, I'm doing search financial
11. 0:16advisors. So, I'm doing a bunch of
12. 0:18stuff. I'm doing
13. 0:19uh paid meta ads for most anything
14. 0:21deliverable. And then I'm starting to
15. 0:23notice that we're booking a lot of
16. 0:25appointments for advisors, but they're
17. 0:26not closing them. So, I'm starting to
18. 0:28build in like AI systems for them and
19. 0:31and supporting them with like sales
20. 0:32coaching calls to help them convert.
21. 0:36>> Okay.
22. 0:37I drink uh a shot of energy while you
23. 0:40said who is the person that you're doing
24. 0:42the client acquisition for uh for?
25. 0:45>> Financial advisors.
26. 0:46>> Financial advisors. Okay, got it.
27. 0:48Okay, what's price point?
28. 0:51>> Uh so, I'm charging 5K up front and then
29. 0:54between
30. 0:55uh 2K a month and 5K a month. And then
31. 0:59I'm trying to figure out some sort of
32. 1:00upside.
33. 1:01>> Yeah, how are you getting them right
34. 1:02now?
35. 1:03Yeah, how are you getting how are you
36. 1:04getting them right now?
37. 1:05>> Uh yeah, so I've I've done the interview
38. 1:07method. So, I I emailed like a bunch of
39. 1:10people, did some insights, did that
40. 1:11first. Uh we got one from cold call. And
41. 1:15then I've had a couple of verbal yeses
42. 1:17through paid Facebook ads, but they
43. 1:19haven't like they haven't actually
44. 1:20closed.
45. 1:21>> Okay, how long have you been doing this?
46. 1:24>> Uh I've really started pushing this
47. 1:26since October.
48. 1:27>> Okay, so it's I'd like less than a year.
49. 1:29Yeah. You're figuring out your first
50. 1:30real channel. So, I'll tell you right
51. 1:32now for just about anyone who's doing
52. 1:34less than a million dollars a year, it's
53. 1:35almost always dramatic underestimation
54. 1:38of the volume required.
55. 1:40>> Okay.
56. 1:41>> So, right now you said you got one from
57. 1:42cold calls, you got one you got a couple
58. 1:43from interview method, right?
59. 1:46>> Yeah, yeah. And then I've been moving to
60. 1:48paid ads and and uh the leads flow is
61. 1:50coming in, but like the quality of the
62. 1:52leads have been fluctuating. So, I'll
63. 1:54have a couple of paid calls and then a
64. 1:55couple like terrible and I'm just trying
65. 1:57to figure out
66. 1:58>> you're just measuring on two you're
67. 1:59measuring on too small of a time
68. 2:00horizon. I'm just like it's normal that
69. 2:02you got good leads, you got bad leads.
70. 2:03That's just part of it.
71. 2:06>> All right. Okay. And so you don't you
72. 2:08don't think it's the offer? Like you
73. 2:09don't think like what I'm usually you
74. 2:11guys should just ramp up the amount of
75. 2:13volume in terms of new prospects? Cuz I
76. 2:15I've also done
77. 2:17you know, uh
78. 2:1880 80
79. 2:20>> What's your close rate right now?
80. 2:22Say it again.
81. 2:24>> 10%.
82. 2:25>> Oh, 10% is your close rate right now?
83. 2:28>> Yeah.
84. 2:28>> Now, of so the 10% though cuz I want to
85. 2:30give good get good numbers here.
86. 2:32Are all that would mean that 10 out of
87. 2:3410 people that you made the offer to
88. 2:35were qualified or this 10 people you
89. 2:37talked to and you close So, okay, of
90. 2:39qualified leads that you made an offer
91. 2:40to you close one.
92. 2:43>> Yeah.
93. 2:43>> Okay. Now, I don't know how good your
94. 2:44sales skills are cuz sometimes like if
95. 2:46you don't know how to you know, if
96. 2:47you're just getting used to sales like
97. 2:48that could be a thing it might not
98. 2:49necessarily be the offer as much.
99. 2:51Um, but what's the incentive for someone
100. 2:53to sign up right now?
101. 2:56>> [snorts]
102. 2:57>> Uh
103. 2:59What's the incentive for them to sign
104. 3:01up?
105. 3:02Um, like well, I'm just drive them new
106. 3:04traffic and they don't have to worry
107. 3:05about like booking appointments. I just
108. 3:07put appointments on their calendar.
109. 3:09>> Do you have um do you have a VSL in your
110. 3:11sales process right now?
111. 3:13>> Yeah, but I don't I don't think it's
112. 3:15well, I I don't think it's very like
113. 3:17good. My background is in sales um
114. 3:19marketing and so I leaned on that
115. 3:21heavily,
116. 3:22yeah. But this this is just a different
117. 3:24product than I've been selling. Okay.
118. 3:26It's lower ticket not high ticket.
119. 3:27>> So, I'm going to tell you something that
120. 3:28I told one of my sales directors years
121. 3:29ago, which is that at this point right
122. 3:32now, especially if you came from a
123. 3:33background of sales, I want you to be
124. 3:35thinking about how do I make sales
125. 3:36easier rather than how do I get better
126. 3:38at sales? So, I think you have the right
127. 3:39frame. Just just big picture, okay? Um,
128. 3:42so
129. 3:46I like I you need basically how many how
130. 3:48many success rates you have?
131. 3:51>> I have uh three, but yeah, three.
132. 3:54>> Okay.
133. 3:55>> They're not like amazing though. They're
134. 3:57okay.
135. 3:57>> So, I'm going to tell you something that
136. 3:59you probably don't want to hear, but
137. 4:00like this is what I would do if I were
138. 4:02you. Hmm?
139. 4:04What are you going to say?
140. 4:05>> I said do it.
141. 4:06>> Fine. Okay. Play it probably doesn't
142. 4:07want to say.
143. 4:08Um I would probably see if I could work
144. 4:10for people with a free trial plus
145. 4:12penalty model, which is actually a
146. 4:14different one that's a money model
147. 4:15that's inside of money models uh book
148. 4:18and system. So, when you go go up go
149. 4:20watch that uh video training on it. Uh
150. 4:22everyone who's watching this by the way,
151. 4:24it's free.
152. 4:24>> [snorts]
153. 4:24>> Chill out. That's free for anybody. You
154. 4:26don't have to buy a book. Um
155. 4:28but uh
156. 4:30the way it works is this is that you
157. 4:31have someone put a card down and they
158. 4:33still have to do all these behaviors and
159. 4:34if they don't do the behaviors you bill
160. 4:35them.
161. 4:38>> Uh yeah.
162. 4:39>> And the reason for that is like listen,
163. 4:41I will do this work for you and I will
164. 4:42do it for free uh because I need
165. 4:44testimonials. Cuz that offer will get
166. 4:47you way more sales obviously cuz like
167. 4:49you probably talk to all these you
168. 4:50probably talk to 30 qualified leads,
169. 4:52right? Something like that.
170. 4:54>> Uh yeah, talked to more than that.
171. 4:55>> Okay. So, dude, I would rather you just
172. 4:57like fill up your calendar, get way
173. 4:59better at it,
174. 5:00and get way more yeses, and then
175. 5:02basically artificially, not
176. 5:03artificially, realistically jam your
177. 5:06supply demand so that you can barely
178. 5:08even like work like can't even do
179. 5:10anything else because you've got so much
180. 5:12business that you're working with, and
181. 5:14then you'll you'll it'll it'll shift
182. 5:15your perspective and your behavior
183. 5:17because you're going to be like dude, I
184. 5:19I have so many people who want to work
185. 5:20with me right now, and then you'll learn
186. 5:23more, you'll [snorts] have way more
187. 5:24testimonials, and then you'll have the
188. 5:25pricing power that you need cuz I mean
189. 5:26it's realistic and it makes sense that
190. 5:28it's taking you so many to close cuz you
191. 5:29have no proof.
192. 5:31>> Yeah.
193. 5:32>> Right, you're leaning purely on sales.
194. 5:34It's purely on sales. Like you just need
195. 5:35the other stuff.
196. 5:38>> Well, what are your what are your
197. 5:38thoughts on it? So, like I I guess this
198. 5:40is a future problem, but then my other
199. 5:42thought around this was if I think I
200. 5:43can't convert the leads, then I'm going
201. 5:46to you know bring on all this traffic
202. 5:47for them to try to convert the leads,
203. 5:49but the kids still can't convert it. So
204. 5:50then I'm out of cash flow and I can't
205. 5:52sell
206. 5:52>> No, no, you're not No, they're going to
207. 5:53pay for the ads, dude. They're going to
208. 5:54pay for the ads. You're not You're not
209. 5:55Like, you're going to do the service for
210. 5:56free.
211. 5:59>> All right, but they're going to pay for
212. 6:00the ads. They still don't convert the
213. 6:02the leads, right? Like then then I'm
214. 6:04going to
215. 6:05>> Yeah.
216. 6:05>> I got to help them convert those those
217. 6:07leads.
218. 6:08>> This is a feature, not a bug.
219. 6:11Um
220. 6:12So, when you're an agency and you deal
221. 6:15with small business owners, which is
222. 6:17what you're dealing with, it's going to
223. 6:19pretty much just suck.
224. 6:20Um and I'll tell you that there's really
225. 6:22only like Let me just fast-forward to
226. 6:23what's going to happen. Can I just tell
227. 6:25you your future for a second?
228. 6:26So, what's going to happen is you are
229. 6:28going to figure out how to start
230. 6:29acquiring customers. You're going to
231. 6:30like So, in steps. You're going to
232. 6:31follow this advice. You're then going to
233. 6:33get enough proof. With enough proof,
234. 6:34you're going to make a compelling VSL.
235. 6:35With a compelling VSL, you're going to
236. 6:36start being able to sell at higher
237. 6:38prices. You're going to start increasing
238. 6:39your prices. Because you know how to
239. 6:40acquire customers, you're going to start
240. 6:41selling more customers. And you're going
241. 6:42to get excited cuz you're going to a
242. 6:43disproportion of that is going to drop
243. 6:45straight to the bottom line. But when
244. 6:46that starts happening, you're also going
245. 6:47to start noticing that people are going
246. 6:48to start falling off the back end. And
247. 6:50then all of a sudden, your revenue's
248. 6:50going to go up. And but CAC's going to
249. 6:52start going up, too, over time. And then
250. 6:53your margins are going to compress. And
251. 6:54then you're going to be at between 1 and
252. 6:553 million dollars a year, and you're
253. 6:56going to be like, "Man, uh this sucks.
254. 6:58Um I have this big churn factory." And
255. 7:00then you'll call back and be like, "Hey,
256. 7:01you know, I'm doing 1.8 million top
257. 7:03line. I did 250,000 bottom line. Um I'm
258. 7:06really not sure what to do with my, you
259. 7:08know, agency right now cuz these guys,
260. 7:09you know, if they kind of suck at
261. 7:10business, and I have to try to explain
262. 7:12to them. I have to hold their hands and
263. 7:13do all this work for them. Um and so I'm
264. 7:15just trying to figure out a better way
265. 7:16to run this business. And so then at
266. 7:17that point, I would then say, "Okay,
267. 7:18well, the issue is this. Is that you
268. 7:20have a poor avatar that sucks at
269. 7:22business. And so either option one is
270. 7:25that you build this thing from the front
271. 7:26end so that it's as low cost as humanly
272. 7:28possible so they don't churn ever, and
273. 7:30you can do something in such a way that
274. 7:32like at 300, 400 dollars a month, uh you
275. 7:35still run insane margins on it cuz your
276. 7:38sticker rate's really good, and it costs
277. 7:39you almost nothing to run. That's option
278. 7:41one. That's the low-cost, high-volume
279. 7:42model, and it works fine, but you have
280. 7:44to build the business day one with that
281. 7:45low-cost volume model so that you're
282. 7:48you're dealing with these small business
283. 7:49owners. You have to price it at their
284. 7:51worst month, not their best month. Now,
285. 7:53the second scenario is that you have to
286. 7:54go after higher You have to go after
287. 7:56whales, right? You have to go upmarket.
288. 7:58And those guys don't need your help
289. 7:59closing cuz they know how to close, and
290. 8:01they just need deals. They just need,
291. 8:02you know, they need lead flow.
292. 8:05Either of those are
293. 8:07Yeah, either of those are the end state
294. 8:08of where you're going to go,
295. 8:10but it often happens that you have to go
296. 8:12through all those stages that I just
297. 8:13outlined
298. 8:15because you don't have the confidence
299. 8:17yet, you don't have the proof yet to go
300. 8:18sell those whales. And so, it's like you
301. 8:20kind of need to get yourself to a
302. 8:21business owner, you know, who's who's
303. 8:23making a million, two million, whatever
304. 8:24a year in revenue, so that then you can
305. 8:26be like, "Wow, this sucks.
306. 8:28Um I should build this differently." So,
307. 8:30those are the two end states. It's
308. 8:31either you're going to build this day
309. 8:32one with kind of like super AI-enabled,
310. 8:34super automation-enabled, um so that you
311. 8:37can do this at low cost, or you're going
312. 8:38to say, "I got to go whale hunting."
313. 8:39But, the thing is, it's very hard to
314. 8:40sell whales with no proof.
315. 8:42>> [snorts]
316. 8:43>> But, those are the two end states of
317. 8:44actually what makes this business work.
318. 8:48>> Okay, so
319. 8:49is there is there a world where I I
320. 8:50don't even go after this market, and I I
321. 8:52change the
322. 8:54>> No, so everything You're good.
323. 8:56Everything I just described is true of
324. 8:58anyone who does uh client acquisition
325. 9:00for any business.
326. 9:02>> Okay.
327. 9:03>> It's a Like, what happens is if you're
328. 9:04good at marketing and sales, you very
329. 9:05quickly deal with people who just aren't
330. 9:07They're only good at one element of it,
331. 9:09right? They're not good at some
332. 9:09component, which is why they're hiring
333. 9:11you, but it's kind of this catch-22. So,
334. 9:13you end up eating up more and more of
335. 9:14their business, or you have to go up
336. 9:17upmarket. And so, you either have to
337. 9:18make it so cheap that you don't care if
338. 9:20they churn because there's so many of
339. 9:21them, and
340. 9:22uh it costs you nothing, or you actually
341. 9:25price it in a way that you can have uh
342. 9:27charge a premium, but you can only do
343. 9:28that with people who can afford it,
344. 9:29which is upmarket. So, if you look at
345. 9:31the biggest agencies in the world, which
346. 9:32is basically what you are, you either
347. 9:34got to go like, you know, super cheap,
348. 9:37super high volume, or premium whales,
349. 9:40Ogilvy, you know what I mean? Um
350. 9:43And some of these bigger
351. 9:44>> They just got to deal with it for
352. 9:44>> Yeah, so yeah, but I think you got to go
353. 9:46through this this crap period, but you
354. 9:47got to know that the the purpose of this
355. 9:49crap period is to get proof so that you
356. 9:51can move up market or down market
357. 9:52depending on you. Either way, it's up to
358. 9:53you.
359. 9:55>> Yeah. Okay.
360. 9:56>> Cool?
361. 9:57>> All right. Perfect.
362. 9:58>> All right. Appreciate you, man. Thanks.
363. 9:59Thank you for donating books, dude.
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