Why a Short Trial Can Sell a Long Service — Transcript

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1. 0:00I sell high school English tutoring to
2. 0:03parents of students mostly who want to
3. 0:05study competitive courses like medicine
4. 0:08at university.
5. 0:10We do 20k a month in revenue, 15k
6. 0:13profit. So
7. 0:16per year.
8. 0:17That'd be 250-ish this year.
9. 0:20>> And are you the only employee of the
10. 0:22business?
11. 0:22>> Uh no, I have six other tutors under me.
12. 0:26Now.
13. 0:27>> Okay.
14. 0:29>> Um and I would like to get to a million
15. 0:32in revenue.
16. 0:33>> Okay.
17. 0:34>> To start with.
18. 0:34>> Okay.
19. 0:35>> And then go from there.
20. 0:37>> Okay.
21. 0:39>> Um at the moment I think what's stopping
22. 0:41me is the offer and sales process.
23. 0:44>> Okay.
24. 0:45>> And so I've got sort of two questions.
25. 0:48One is
26. 0:49can you help me with my offer?
27. 0:51>> I'll do my best.
28. 0:53>> Um and then the second one is
29. 0:55specifically I booked a call to come to
30. 0:58this workshop because
31. 1:00I changed my advertising campaign in
32. 1:03February and although my cost per lead
33. 1:06dropped by 75% the traffic was horrible
34. 1:10and then none of them continued as
35. 1:11clients. So
36. 1:14I was wondering if you had any thoughts
37. 1:15around that.
38. 1:16>> you doing when you were making sales?
39. 1:17>> [snorts]
40. 1:18>> So I had ads going to a short three-week
41. 1:22summer program.
42. 1:23>> Okay.
43. 1:23>> And then I just sort of
44. 1:25varied that through the year and that
45. 1:27worked really well through 2024 but um
46. 1:30it sort of
47. 1:31one thing I noticed was despite the fact
48. 1:33that it was a short program, everyone
49. 1:35who was coming through just kind of
50. 1:36didn't really want the program. They
51. 1:37just wanted ongoing tutoring.
52. 1:39>> Mhm.
53. 1:40>> So and then that ad sort of started
54. 1:42dying a little bit in February. So I
55. 1:44changed to an ad that was just for like
56. 1:47ongoing tutoring.
57. 1:48>> Uh-huh.
58. 1:49>> Um and I had like 100 people come
59. 1:51>> targeting, same
60. 1:52>> Yeah, well the other thing was that
61. 1:54Facebook changed the targeting thing so
62. 1:56I couldn't target 35 and above. I think
63. 1:58the minimum
64. 2:00or the maximum age limit I could put on
65. 2:02it was 25.
66. 2:03>> Okay.
67. 2:04>> So, I started getting a bunch more
68. 2:05students coming through when usually I
69. 2:07just want to talk to parents because
70. 2:09obviously they make the decision.
71. 2:11>> Yeah.
72. 2:12>> Yeah.
73. 2:13>> Okay. So, the issue is that you just
74. 2:16have a demand problem.
75. 2:17Um I think that so as much as
76. 2:21you felt like people came in saying,
77. 2:22"Oh, I just want this thing."
78. 2:24So, I'll tell you I'll tell you a story
79. 2:26that might illustrate the point. So,
80. 2:28it's called the ham and the garlic. So,
81. 2:29little boy
82. 2:31uh wants a dog, begs his begs his dad
83. 2:33for a dog.
84. 2:34Um dad says no, finally caves in and
85. 2:35says, "I'll get you a dog, but you have
86. 2:36to take care of everything." So, one day
87. 2:38dad's away uh and then the kid uh comes
88. 2:41crying to his grandmother cuz he has the
89. 2:42dog and he realizes the dog has ticks.
90. 2:44He's like, "Oh my dad, you know, my god,
91. 2:45my dad's going to kill me." So,
92. 2:47grandmother says, "Hey, you know, give
93. 2:49this uh give this garlic to the dog and
94. 2:52it will um
95. 2:53it'll eat it and it'll kind of sweat
96. 2:55sweat it out and the ticks will go
97. 2:56away." So, the kid tries to feed the dog
98. 2:58and does this and doesn't want to eat
99. 2:59it. So, the kid's even more upset now,
100. 3:01it goes back to the grandmother and
101. 3:02says, "What do I do? It's not eating."
102. 3:04She says, "Oh, you didn't just give it
103. 3:05to it, did you?" She's like, "You have
104. 3:06to wrap it in the ham first." She's
105. 3:08like, "Then give it to him." So, he goes
106. 3:09back, wraps in the ham, dog eats it, you
107. 3:12know, the day is saved and everything's
108. 3:13good. So, the moral of the story is you
109. 3:15have to give people what they want in
110. 3:16order to give them what they need. And
111. 3:17so, if people were buying the three-week
112. 3:19thing,
113. 3:20some people might say, "Hey, I really
114. 3:22just want like no person ever bought a
115. 3:23gym saying like gym membership saying,
116. 3:26'I really want a lifestyle.'"
117. 3:28Like [snorts and laughter]
118. 3:29never. Not once. Right? They want a
119. 3:31six-week challenge. They want a 21-day
120. 3:33detox. They want a 28-day fix. Whatever
121. 3:36it is. And so, if you sell a defined end
122. 3:38thing on the front end, it really just
123. 3:40becomes a sales motion to sell the thing
124. 3:42that they then realize because you have
125. 3:43a longer period of time to educate them
126. 3:45on what matters. Right? So, we would
127. 3:47say, "Okay, listen, we're going to help
128. 3:48you lose 20 lbs six weeks, but let's be
129. 3:49real, you know, Dorothy, like you are 50
130. 3:52lb overweight. This you know, 6 weeks
131. 3:54from now you're still going to not be
132. 3:55happy with how you look. So, why don't
133. 3:57we just actually solve this problem for
134. 3:58good? And now that she's in it, she's
135. 4:00seen momentum, she's like, "Okay, now
136. 4:02I'm into it I'm into this and I want to
137. 4:03stick long term, right?" So, um I think
138. 4:06for you, if the 3-week thing number one
139. 4:08was selling, I would go back to that.
140. 4:11Number two is it sounds like your
141. 4:12creative might have just suffered. So,
142. 4:13probably having more variation of the of
143. 4:15the of the offer that actually worked.
144. 4:17Number three is how do you upsell those
145. 4:18people from the 3-week in the
146. 4:20continuity, which is you just take the
147. 4:223-week thing and then just bundle it
148. 4:24against a 1-year package.
149. 4:26>> Okay.
150. 4:28Generally people
151. 4:30Okay, so two things. One,
152. 4:33um there are four terms in a school
153. 4:35year. So, generally I bill like for
154. 4:37those terms. Should I
155. 4:40should I bundle the 3-week thing against
156. 4:43like a term package or should I do it
157. 4:44just against a year package to get them
158. 4:46to
159. 4:47>> I would do a year.
160. 4:48>> Okay.
161. 4:49>> And if you want an offer, what's the
162. 4:51outcome that you give them?
163. 4:53>> Hopefully they score in the top
164. 4:56Generally people want to be in the top
165. 4:5710% of the state.
166. 4:59>> Is there points though?
167. 5:00>> Yeah, so you get a score out of 50 and
168. 5:04>> Okay.
169. 5:04>> Yeah.
170. 5:05>> So, you might say most people want 40
171. 5:06plus. You might say you know, four
172. 5:08points or 10% on your score or I'll keep
173. 5:11tutoring you for free until you get it.
174. 5:13>> [snorts]
175. 5:14>> Okay.
176. 5:15>> That's pretty compelling.
177. 5:17>> All right.
178. 5:18>> And then the fear that you're going to
179. 5:19have is what happens if someone just
180. 5:21doesn't get the scores, they'll give up.
181. 5:24>> [laughter]
182. 5:24>> I'm telling you, like people don't just
183. 5:25keep studying for years and not get
184. 5:27scores.
185. 5:28>> [snorts]
186. 5:28>> Yeah.
187. 5:29Another question I had is one of the
188. 5:31biggest tutoring companies in my state
189. 5:33does
190. 5:35I think around a million a month and
191. 5:37their offer is just a 1-week free trial
192. 5:40or 2 weeks before the school year
193. 5:41starts.
194. 5:42>> Yeah.
195. 5:43Why don't they just sell people straight
196. 5:45into tutoring?
197. 5:46>> That company.
198. 5:47>> No, but you get my point is that it's a
199. 5:49defined end thing. They let people they
200. 5:51give them the the ham, which is what
201. 5:52they want, try it, taste it, and then
202. 5:55they sell them into long-term thing. So,
203. 5:57the fact that the three-week thing works
204. 5:58better than just go buy my continuity
205. 6:00makes sense cuz continuity is rarely
206. 6:02sold that way.
207. 6:03>> Okay.
208. 6:04>> Cool.
209. 6:05>> All right. Thank you.
210. 6:06>> You bet. If you like this video and
211. 6:08you're business owner who wants to break
212. 6:09through your current revenue ceiling, I
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219. 6:21can click here and you can check it out.
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221. 6:24business owner, appreciate you and
222. 6:26enjoy.