Why Better Sales Calls Won't Fix a 10% Close Rate — Transcript

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1. 0:00Let's Let's Let's do this. Okay, top
2. 0:02line's 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>> So, we're selling client acquisition
10. 0:14services. So, I'm doing for it's uh
11. 0:16financial advisors. So, I'm doing a
12. 0:17bunch of stuff. I'm doing uh paid meta
13. 0:20ads for mostly deliverables. And then,
14. 0:23I'm starting to notice that we're
15. 0:24booking a lot of appointments for
16. 0:25advisors, but they're not closing them.
17. 0:27So, I'm starting to build in like AI
18. 0:29systems to help them and supporting them
19. 0:32with like sales coaching calls to help
20. 0:33them 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
24. 0:42doing the client acquisition for uh
25. 0:43for?"
26. 0:45>> Financial advisors.
27. 0:46>> Financial advisors. Okay, got it.
28. 0:48Okay, what's price point?
29. 0:51>> Uh so, I'm charging 5K up front and then
30. 0:54between
31. 0:55uh 2K a month and 5K a month. And then,
32. 0:59I'm trying to figure out some sort of
33. 1:00upside.
34. 1:01>> Yeah, how are you getting them right
35. 1:02now?
36. 1:03Yeah, how are you getting them How are
37. 1:04you getting them right now?
38. 1:05>> Uh yeah, so I I've done the interview
39. 1:07method. So, I I emailed like a bunch of
40. 1:10people, did some insights, did that
41. 1:11first. Uh we got one from cold call. And
42. 1:15then, I've had a couple of verbal yeses
43. 1:17through paid Facebook ads, but we
44. 1:19haven't I haven't actually closed.
45. 1:21>> Okay, how long have you been doing this?
46. 1:24>> Uh I really started pushing this since
47. 1:27October.
48. 1:27>> Okay, so it's I 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
60. 1:47to paid ads and then uh the lead flow is
61. 1:50coming in, but like the quality of the
62. 1:51leads have been fluctuating. So, I'll
63. 1:54have a couple of good calls and then a
64. 1:55couple like terrible. And I'm just
65. 1:57trying to 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>> Right. Okay. And so you don't you don't
72. 2:08think it's the offer? Like you don't
73. 2:09think like one of my like usually guys
74. 2:11suggest ramp up the amount of volume in
75. 2:14terms of new prospects? Cuz I I've also
76. 2:16done
77. 2:17this uh like 80 80s
78. 2:20>> What's your close rate
79. 2:22Say it again.
80. 2:24>> 10%.
81. 2:25>> Oh, 10% is your close rate right now.
82. 2:28>> Yeah.
83. 2:28>> Now, of So, the 10% though cuz I want to
84. 2:30get good get good numbers here.
85. 2:32Are all that would mean that 10 out of
86. 2:3410 people that you made the offer to
87. 2:35were qualified or this 10 people you
88. 2:37talked to and then you close So, okay,
89. 2:38of qualified leads that you made an
90. 2:40offer to, you closed one.
91. 2:43>> Yeah.
92. 2:43>> Okay. Now, I don't know how good your
93. 2:44sales skills are cuz sometimes like if
94. 2:46you don't know how to you know, if
95. 2:47you're just getting used to sales like
96. 2:48that could be a thing it might not
97. 2:49necessarily be the offer as much.
98. 2:51Um but what's the incentive for someone
99. 2:53to sign up right now?
100. 2:56>> [snorts]
101. 2:57>> Uh
102. 2:59What's the incentive for them to sign
103. 3:01up?
104. 3:02Um like well, I just drive them new
105. 3:04traffic and they don't have to worry
106. 3:05about like booking appointments. I just
107. 3:07put appointments on their calendar.
108. 3:09>> Heard. Do you have um do you have a VSL
109. 3:11in your sales process right now?
110. 3:13>> Yeah, but I don't I don't think it's
111. 3:15well, I I don't think it's very like
112. 3:17good. Um my background is in sales um
113. 3:19but marketing and so I leaned on that
114. 3:21heavily, but yeah. It's just this is
115. 3:23just a different product than I've been
116. 3:24selling. Okay. It's not high ticket.
117. 3:26It's not high ticket.
118. 3:27>> So, I'm going to tell you something that
119. 3:28I told one of my sales directors years
120. 3:29ago, which is that at this point right
121. 3:32now, especially if you came from a
122. 3:33background of sales, I want you to be
123. 3:35thinking about how do I make sales
124. 3:36easier rather than how do I get better
125. 3:38at sales? So, I think you have the right
126. 3:39frame. Just just big picture, okay?
127. 3:42Um
128. 3:42so,
129. 3:46I want like
130. 3:47I you need basically how many how many
131. 3:48success stories do you have?
132. 3:51>> I have uh three, but yeah, three.
133. 3:54>> Okay.
134. 3:55>> They're not like amazing though. They're
135. 3:57they're okay.
136. 3:57>> So, I'm going to tell you something that
137. 3:59you probably don't want to hear, but
138. 4:00like this is what I would do if I were
139. 4:02you, hm?
140. 4:04What are you going to say?
141. 4:05>> Just do it.
142. 4:06>> Fine. Okay. Layla probably doesn't want
143. 4:07me to say. Um I would probably see if I
144. 4:10could work for people with a free trial
145. 4:12plus penalty model, which is actually a
146. 4:14different one that's a money model
147. 4:15that's inside of the money models uh
148. 4:17book
149. 4:18and system. So, when you go go go watch
150. 4:20that uh video training on it. Uh
151. 4:22everyone who's watching this by the way,
152. 4:24it's free. Chill out. That's free for
153. 4:25anybody. You don't have to buy a book.
154. 4:27Um
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.
159. 4:34And if they don't do the behaviors, you
160. 4:35bill them.
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 talked to all these you
168. 4:50probably talked to 30 qualified leads,
169. 4:52right? Something like that.
170. 4:54>> Uh yeah, I talked to more than that. I
171. 4:55was
172. 4:56>> Okay. So, dude, I would rather you just
173. 4:57like fill up your calendar, get way
174. 4:59better at it,
175. 5:00and get way more yeses, and then
176. 5:02basically artificially, not
177. 5:03artificially, realistically, jam your
178. 5:06supply demand so that you can barely
179. 5:08even like work like can't even do
180. 5:10anything else because you've got so much
181. 5:12business that you're working with. And
182. 5:14then you'll you'll it'll it'll shift
183. 5:15your perspective and your behavior
184. 5:17because you're going to be like, "Dude,
185. 5:18I I have so many people who want to work
186. 5:20with me right now." And then you'll
187. 5:22learn more, you'll have way more
188. 5:24testimonials, and then you'll have the
189. 5:25pricing power that you need. Cuz I mean,
190. 5:26it's realistic and it makes sense that
191. 5:28it's taking you so many to close cuz you
192. 5:29have no proof.
193. 5:31>> Yeah.
194. 5:32>> Right? You're leaning purely on sales.
195. 5:34It's purely on sales. Like you just need
196. 5:35the other stuff.
197. 5:38>> Well, what are your what are your
198. 5:38thoughts on it? So, like I I guess this
199. 5:40is a future problem, but then my other
200. 5:42thought around this was oh, if they
201. 5:43can't convert the leads, And going to,
202. 5:46you know, bring on all this traffic for
203. 5:48them to try to convert the leads, but
204. 5:49they can't still can't convert it. So
205. 5:50then I'm out of cash flow and I can't
206. 5:52solve
207. 5:52>> No, no, you're not No, they're going to
208. 5:53pay for the ads, dude. They're going to
209. 5:54pay for the ads. You're not You're not
210. 5:55Like you're going to do the service for
211. 5:56free.
212. 5:59>> Right, right. But they're going to pay
213. 6:00for the ads, they still don't convert
214. 6:01the the leads, right? Like then then I'm
215. 6:04going to
216. 6:05>> Yeah.
217. 6:05>> I got to help them convert those those
218. 6:07leads.
219. 6:08>> This is a feature, not a bug.
220. 6:11Um
221. 6:12So when you're an agency and you deal
222. 6:15with small business owners, which is
223. 6:17what you're dealing with, it's going to
224. 6:19pretty much just suck.
225. 6:20Um and I'll tell you that there's really
226. 6:22only Like let me just fast-forward to
227. 6:23what's going to happen. Can I just tell
228. 6:25you your future for a second?
229. 6:26So what's going to happen is you are
230. 6:28going to figure out how to start
231. 6:29acquiring customers You're good Like so
232. 6:30in steps. You're going to follow this
233. 6:32advice. You're then going to get enough
234. 6:33proof. With enough proof, you're going
235. 6:34to make a compelling VSL. With a
236. 6:35compelling VSL, you're going to start
237. 6:37being able to sell at higher prices.
238. 6:38You're going to start increasing your
239. 6:39prices. Because you know how to acquire
240. 6:41customers, you're going to start selling
241. 6:42more customers. And you're going to get
242. 6:43excited cuz you're going to a
243. 6:43disproportion of that is going to drop
244. 6:45straight to the bottom line. But when
245. 6:46that starts happening, you're also going
246. 6:47to start noticing that people are going
247. 6:48to start falling off the back end. And
248. 6:49then all of a sudden your revenue's
249. 6:50going to go up, and the CAC's going to
250. 6:52start going up too over time. And then
251. 6:53your margins are going to compress. And
252. 6:54then you're going to be at between 1 and
253. 6:553 million dollars a year and you're
254. 6:56going to be like, "Man, uh this sucks.
255. 6:58Um I have this big churn factory." And
256. 7:00then you'll call back and be like, "Hey,
257. 7:01you know, I'm doing 1.8 million top
258. 7:03line. I did 250,000 bottom line. Um I'm
259. 7:06really not sure what to do with my, you
260. 7:08know, agency right now cuz these guys,
261. 7:09you know, they kind of suck at business
262. 7:11and I have to try to explain to them I
263. 7:12have to hold their hands and do all this
264. 7:13work for them.
265. 7:14Um and so I'm just trying to figure out
266. 7:15a better way to run this business." And
267. 7:16so then at that point I would then say,
268. 7:18"Okay, well, the issue is this is that
269. 7:20you have a poor avatar that sucks at
270. 7:22business. And so either option one is
271. 7:25that you build this thing from the front
272. 7:26end so that it's as low cost as humanly
273. 7:28possible so they don't churn ever, and
274. 7:30you can do something in such a way that
275. 7:32like at 300, 400 dollars a month, uh you
276. 7:35still run insane margins on it cuz your
277. 7:38sticker rate's really good and it costs
278. 7:39you almost nothing to run. That's option
279. 7:41one. That's the low cost high volume
280. 7:42model, and it works fine but you have to
281. 7:44build the business day one with that
282. 7:45low-cost volume model. So that you're
283. 7:48you're dealing with these small business
284. 7:49owners. You have to price at their worst
285. 7:51month, not their best month. Now, the
286. 7:53second scenario is that you have to go
287. 7:54after higher you have to go after
288. 7:56whales, right? You have to go upmarket.
289. 7:58And those guys don't need your help
290. 7:59closing cuz they know how to close and
291. 8:01they just need deals. They just need,
292. 8:02you know, they need lead flow.
293. 8:05Either of those are
294. 8:07Yeah, either of those are the end state
295. 8:08of where you're going to go.
296. 8:10But it often happens that you have to go
297. 8:12through all those stages that I just
298. 8:13outlined
299. 8:15because you don't have the confidence
300. 8:17yet, you don't have the proof yet to go
301. 8:18sell those whales. And so it's like you
302. 8:20kind of need to get yourself to a
303. 8:21business owner, you know, who's who's
304. 8:23making a million, two million, whatever
305. 8:24a year in revenue so that then you can
306. 8:26be like, "Wow, this sucks.
307. 8:28Um I should build this differently." So
308. 8:30those are the two end states. It's
309. 8:31either you're going to build this day
310. 8:32one with that like super AI enabled,
311. 8:34super automation enabled um so that you
312. 8:37can do this at low cost or you're going
313. 8:38to say, "I got to go whale hunting." But
314. 8:39the thing is it's very hard to sell
315. 8:40whales with no proof.
316. 8:42>> [snorts]
317. 8:43>> But those are the two end states of
318. 8:44actually what makes this business work.
319. 8:48>> Okay, so
320. 8:49is there is there a world where I I
321. 8:50don't even go after this market and I I
322. 8:52change the
323. 8:54>> No,
324. 8:55everything You're good. Everything I
325. 8:56just described is true of anyone who
326. 8:58does uh client acquisition for any
327. 9:00business.
328. 9:02>> Okay.
329. 9:03>> It's a like what happens is if you're
330. 9:04good at marketing and sales, you very
331. 9:05quickly deal with people who just aren't
332. 9:07they're only good at one element of it,
333. 9:09right? They're not good at some
334. 9:10component which is why they're hiring
335. 9:11you but it's kind of this catch-22. So
336. 9:13you end up eating up more and more of
337. 9:14their business or you have to go up
338. 9:17upmarket. And so you either have to make
339. 9:19it so cheap that you don't care if they
340. 9:20churn because there's so many of them
341. 9:21and
342. 9:22uh it costs you nothing or you actually
343. 9:25price it in a way that you can have uh
344. 9:27charge a premium but you can only do
345. 9:28that with people who can afford it which
346. 9:30is upmarket. So if you look at the
347. 9:31biggest agencies in the world which is
348. 9:32basically what you are, you either got
349. 9:34to go like, you know, super cheap, super
350. 9:37high volume, or premium whales, Ogilvy,
351. 9:41you know what I mean? Um
352. 9:43And some of these bigger
353. 9:44>> with it for a little while.
354. 9:45>> yeah, but I think you got to go through
355. 9:46this this crap period, but you got to
356. 9:48know that the the purpose of this crap
357. 9:49period is to get proof so that you can
358. 9:51move up market or down market depending
359. 9:52on you. Either way, it's up to you.
360. 9:55>> Yeah. Okay.
361. 9:56>> Cool?
362. 9:57>> All right. Cool. Thanks.
363. 9:58>> All right. Appreciate it, man. Thanks.
364. 9:59Thank you for donating books, dude.
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