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"Why Can't I Close More Sales?" | 1 Hour of Alex Hormozi — Transcript

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0:00four years, two months, and about six
0:03days. You told me to stop running my
0:06real estate lead generation agency
0:09because I sucked at it.
0:12I took your advice. I listened.
0:14>> I was feeling sassy.
0:16>> It was It was good advice because since
0:18that time, I've sold about 125 million
0:21in real estate.
0:24>> Now,
0:24>> yeah,
0:26>> you you told me to come back and then
0:28figure out the small
0:30Yeah.
0:30>> You know, media agency again have no
0:33interest in doing that. I actually found
0:34that
0:35>> I'm a lot better at selling real estate
0:37than running the agency.
0:38>> Yeah. [laughter]
0:40>> So now what I have done, I've kind of
0:41found a niche because it's another piece
0:44of advice that you told me to figure
0:45out. And then the third thing is you
0:47told me to go find rich people, figure
0:50out their problems and solve them
0:51because they pay a whole lot better.
0:52>> Yeah.
0:53So I started specializing in figuring
0:55out how I can leverage the tax code
0:57>> while helping them acquire real estate,
1:00>> figuring all the different loopholes by
1:02leveraging real estate to offset their
1:03taxes. So I specialize with high income
1:06WD uh workers or you know business
1:10owners, get them real estate. Now the
1:13business has kind of evolved and has
1:15been doubling every year. We're on pace
1:16to do about 55 almost 60 million this
1:19year.
1:20kind of crazy to put things into
1:22perspective. Two and a half, three%
1:24that's what the revenue would be. Yeah.
1:25>> So, division one is the acquisition.
1:27It's about a million, two, million,
1:29three. Then we have a setup business
1:32where we set up the the investment
1:34properties for them, Airbnbs.
1:37Either I got to raise prices or do
1:39something else because I have like 90
1:40almost 95% closing rate. Um, so we are
1:44doing about another two 300k there
1:46>> and then we have the full done for you
1:48management on the back end and that's
1:49packaged on as an offer.
1:52>> After speaking with Ed and a few other
1:54things, I'm trying to figure out am I
1:56killing off baby here and keeping the
1:59main thing the main thing like you told
2:00me back four years ago. We're trying to
2:02figure out how to pivot because the
2:03continuation I know some of my really
2:06high income earners, the people that
2:08have the million, $2 million in taxes to
2:10offload.
2:11>> They don't want to set up the
2:12properties, they don't want to manage
2:13them, they don't want to do anything.
2:14So, they definitely do buy because of
2:16that turnkey method. Uh-huh.
2:19>> So, I'm at this crossroads of do we
2:21double down or I'm capped like how do I
2:24go from 60 to 100 when I have other
2:27people in my office working with sirant
2:29>> doing 300 400 million just selling a
2:32higher ticket item right five$10 million
2:34properties as opposed to million two
2:36three four million dollar properties
2:37like I am right now
2:39>> to try and figure out where to go next
2:41>> so just to give context on this uh when
2:43Allen was our our software company uh we
2:46served white label for, you know, social
2:48media marketing agencies. So, Peter was
2:50helping realtors get leads to sell
2:53houses. And for like six months, he
2:55would hop on. I'd do like a call every
2:57week or whatever. And he would hop on
2:59and he'd be like, "God, these realtors
3:00suck. They don't work their leads, you
3:02know, all of all of this stuff." And six
3:04months he was basically flat with
3:06revenue.
3:06>> Um, and I was like, "Have you ever
3:08worked your own leads?" And like
3:10actually seen because you're not a
3:11realtor. Like, have you ever worked your
3:13own leads and seen if they're actually
3:15any good at all? Um, and he ended up
3:17having a partner there that, you know,
3:19fell off who was the realtor who was
3:20going to be like the expert in the space
3:21and he was just going to run the ads.
3:22And then it was just him. And so we had
3:24a little bit of a heart-to-he heart
3:25moment where I was like, "Listen, man.
3:28It's been six months. Like nothing has
3:29changed because like something has to
3:31change. And so why don't you just like
3:32actually get good at real estate and
3:34then if you want to visit this back once
3:36you go crush it in real estate, this
3:38door will always be open because you you
3:39still have the skills, right? You can
3:41always come back." And so that is the
3:43the full of the other side of almost get
3:46emotional about it, but like very cool,
3:47man. Very cool. Um, okay. So, let's
3:51let's scale this thing. So, um, big
3:53picture, we have
3:55you've this Airbnb thing, right? So, is
3:58that like how many of the people that
3:59you're selling right now need this
4:00Airbnb as the as the way as the reason
4:02that they're they're buying from you?
4:05So out of the 70some deals that we'll do
4:07because nothing is set in stone because
4:10I'm still closing deals literally as
4:11sitting at this event.
4:13>> Um I would say probably about 90% are
4:15buying it for tax purposes. So out of
4:17the 55 million probably like 35 almost
4:2040 is quarter four numbers. Yeah.
4:22>> So like my business is so heavily
4:24stacked in the back end of the year it's
4:26kind of crazy. Yeah.
4:26>> So if I can do that volume in one
4:28quarter like what can I do in four?
4:31>> Yeah. So, but so you have this. Okay, so
4:35a couple considerations is like I'm
4:37seeing path one is you could say I want
4:40to build a compounding vehicle around
4:41this Airbnb thing. You could just
4:43straight raise money and do it. That is
4:46that is a path be like I'm going to
4:47raise a fund. We're going to do Airbnbs
4:48and this is the arbitrage we're playing
4:49with. That's an option. Another option
4:52would be um for these people like you
4:56could obviously raise the prices because
4:57if you're closing 95% then like the off
4:59like the offer is great. So, like we
5:01need to go like way up and the price
5:03would probably just be the percentage
5:04of, you know, the the management fees
5:05and whatnot.
5:06>> Yeah. The the done for you is 10 grand,
5:08but we should be really like 20. Where I
5:10really make the money is the commission
5:12on the actual deal.
5:13>> Yeah.
5:14>> And then the management is at 15% which
5:16is about 5 to 10% below where we should
5:18be. Yeah.
5:19>> But they make more money which then gets
5:20them to transact with us again. And I
5:22have people that bought three, four,
5:23five, six properties. Like I just got a
5:25guy who bought four back to back. But is
5:27the is the limitation of the business
5:28that you can't handle more ops on the
5:30Airbnb?
5:32>> So, I'm I'm getting to this point where
5:33we have about 60 that are up and live
5:36and I keep expanding the team.
5:38>> Yeah.
5:38>> I hate that business. Like if somebody
5:41were to willing
5:41>> any reason you can't just like work with
5:43somebody who does this and just put give
5:46it to
5:46>> So, so that's what initially happened
5:47last year around November. The property
5:49manager quit said, "I'm done. I'm out.
5:51Here's 20 properties. Do whatever you
5:53want with them." So then I went and I
5:55actually got one of my clients who
5:56bought an Airbnb with me who was doing
5:58Airbnb arbitrage
5:59>> kind of brought them in.
6:01>> I made a [ __ ] deal and I'm they take
6:04two/3 of the revenue and I take a third.
6:06So like for me to make a 100 grand
6:08>> Yeah.
6:09>> on year's worth of work when I can only
6:11close two deals. Like it just makes no
6:13sense.
6:14>> So I was thinking about figuring out if
6:15I can pawn it off and partner. A lot of
6:18my clients, what I'm noticing,
6:20>> the management is always the the wild
6:22card, the weakest link because if the
6:24management doesn't do well,
6:25>> they don't come by again.
6:27>> But if everything turns,
6:30we see uptake on obviously the sales.
6:34>> So, I'm looking at trying to see if I
6:37can partner up without letting go of the
6:38control. But on the management side of
6:40the business, there's also we by
6:43accident built a cleaning company.
6:45Really? [snorts] like not directly but
6:47we have cleaners who went from like 10
6:49properties to and scaled with us and
6:51obviously I helped them build out. So
6:52it's
6:53>> now it's all of a sudden it's [laughter]
6:56>> going into way too many directions and
6:58trying to keep the main thing which is
6:59what you told me sell more real estate
7:00or sell high price real estate.
7:02>> I would So um
7:05just because you don't have legal
7:07control doesn't mean you don't have
7:09leverage.
7:10>> Oh yeah, I know.
7:11>> Right. And so
7:14I I do think that what you're probably
7:16looking for is a partner, not like in
7:19your business, but basically somebody
7:21who can just manage this full-time and
7:23then just say like I'll give you 100%.
7:25You know, I mean like you're 30% or
7:26whatever. Like yeah, I see that as not a
7:28[ __ ] deal provided you don't have to do
7:30anything. So I'm all for getting paid
7:33for not working. I don't want to get
7:35paid a small amount if I am working.
7:37basically the CEO. Like everything has
7:39to run through me. Even though he does
7:40like 80% of the work, I'm the clients
7:43call me when [ __ ] goes wrong,
7:46>> right? Um right. You're the one who who
7:48passed who passed on the relationship.
7:50Um I think that if you just position it
7:52as like, well, would they buy they would
7:54still buy from you presumably, right? If
7:57they if the management goes well and it
7:58was a third party
7:59>> like I tried the here's my partner Ken,
8:01here's my partner, whoever, Todd, you
8:04know?
8:04>> Yeah. Yeah.
8:05And I but they're like, "Oh, well, is
8:07this all under you?" So, it's kind of
8:09It's definitely easier sale when I say
8:11it's where it's all interconnected. It's
8:12under the same roof.
8:13>> Yeah. Yeah. Yeah.
8:18>> So, then I'm trying to figure out is how
8:20much of my front-end sale
8:22>> Yeah.
8:23>> is actually
8:25attributed to us being able to set up
8:27the property. Yeah.
8:28>> And then managing like our property
8:30skill.
8:31>> You could always just like sell
8:32properties without it and see what
8:33happens. So I So I did the first year we
8:36did about 10 12 million then we went to
8:3824 then 36 now we're at 55. So last year
8:41>> but you have but you included the Airbnb
8:42in the beginning or just recently?
8:44>> No. So last year basically last
8:46November. Yeah.
8:47>> I had people asking me can you just help
8:48us set it up and they would just waste
8:50my time.
8:50>> Oh so this is recent on the phone. So
8:52you did 24 million before like perom
8:55before adding this in.
8:56>> Yeah.
8:57>> Yeah. I think you should probably just
8:58go sell more houses being real.
9:02>> No for real. I think you should just
9:03sell more houses and then just have an
9:04intro like it's like I can make some
9:06introductions as management companies
9:08but the core thing is they need to buy
9:09the real estate to get the depreciation
9:10or whatever right whatever you know
9:11thing you you figured out um so that's
9:14the like the core thing is they want to
9:15get the money off the books which is why
9:17Q4 is such a big you know thing push
9:19>> right and so having the management to me
9:22feels like it's gravy rather than like
9:24the core thing is like I have to spend
9:26this money or I will pay taxes on it and
9:28I will own an asset that because I would
9:31be like I've got a suite five different
9:33guys that are management companies like
9:35they can do this. I'm the one who gets
9:36you good properties and I will find you
9:38a good deal on the property because if
9:39you buy right it makes it gives you a
9:41lot more padding on the back.
9:42>> Yeah. So like when we had the
9:43partnerships the issue that I ran into
9:45Yeah.
9:46>> is that the guys would do a [ __ ] job and
9:47then I would get the phone call manage
9:49this.
9:49>> I think but it's like I think all of
9:51that comes down to expectation setting.
9:54So if you're having the conversation
9:55with them and you're like listen if we
9:57buy right you're gonna save like you
9:58will you get an instant 58% increase on
10:01the money that you don't pay taxes on.
10:02>> Yeah.
10:03>> Right. So like no matter what we get a
10:0458% increase on free money.
10:07>> That's what I can deliver. I can
10:09introduce you to some people
10:10everything's hit or miss and like the
10:12management's up to them. Now that's part
10:14of that like that's part of what you're
10:15getting to. But if you're good to lock
10:16in the 58 let me go get you a house and
10:17I'll make sure I buy it below market
10:18blah blah blah blah. I think you could
10:20still do the pitch. I think it's all
10:21about just how you set the the
10:23expectation up front.
10:24>> So a lot of the leads that are coming in
10:26is through my strategic partners. Like I
10:28go I speak around the country, I get on
10:30stages, right? And room full of people
10:33typically CPAs, accountants, tax
10:34advisors.
10:37>> I've been thinking about going direct to
10:39consumers. So instead of finding the
10:41CPAs and speaking, going directly to,
10:43hey, are you a high income earnner, W2,
10:46whatever.
10:47>> Yeah.
10:47>> Is that the wrong tree to bark at?
10:50because I don't want to be dependent on
10:51those strategic partners. Like we we I
10:53definitely identify.
10:54>> How many do you have?
10:55>> I have like three or four.
10:56>> Okay, that is a little dependent. Well,
10:58I mean I think I think it was the right
10:59strategy. I think you just need to do
11:02way more. I think it's more like how do
11:04I get like 30 or 40? And so I think part
11:06of the reason that you've been bending
11:07over backwards is because you need the
11:10deals that they give you rather than
11:12like if you had 30 or 40 of these CPAs,
11:14they'll send you customers and you'll be
11:16like, "Listen, this guy wants a shitload
11:19of stuff. I can I will get these guys
11:20the houses they need and will, you know,
11:22to to to get the the the the tax
11:24treatment that they are looking for and
11:27you'll be able to turn down some
11:28business that doesn't require this
11:30backend thing in order to close the
11:32deal. So, it's like maybe you lose 25%
11:33of your business um by not having to
11:36deal with all this headache and just
11:37saying like I can make intros but like
11:39I'm not associated but I can do the core
11:41economic arbitrage which is the first
11:42sale
11:44>> which inadvertently will help us make
11:46more money because I can go sell more.
11:47Yeah, you can focus. And I think that if
11:49you if you had all the time back from
11:50all this management [ __ ] and then
11:52just said, "I'm gonna go from having
11:54four CPAs to 40 by the end of the year,
11:56and we're going to run it the same way."
11:58Like, you'll have 10x the lead flow. And
12:00assuming you close three out of four
12:02instead of 100% because instead of a a
12:04grand slam offer, it's a home run offer,
12:06right? Um then you'll still have tripled
12:10the business.
12:12>> And then would you change all the
12:13marketing and all the
12:15>> Sorry, 8x the business. Excuse me. 7x
12:16all the outbound to just target the CPAs
12:20or would you still have some for the
12:22direct to consumer?
12:23>> Well, what percentage right now is
12:25coming from the CPAs?
12:26>> I would say probably like 60 70%.
12:28>> And the other third is from what?
12:31>> Either word of mouth coming, you know,
12:33recurring or literally people finding me
12:35on Instagram after I haven't posted a
12:36month, right?
12:37>> Yeah. I think um I think the CPA is the
12:39is the primary channel. Like you've
12:41gotten 60% of your revenue from four
12:43people. I just think great, how do we
12:44have 40 or 400? To me, that's the entire
12:47game.
12:47>> Yeah. And then the the the customers
12:49that are coming back,
12:51>> they'll come back.
12:52>> They're they're they're coming back or
12:53they're referring us now at this point
12:55because they know,
12:56>> but like I see that as the repeat
12:57business, which let's just carve out for
12:59sake of like where does new business
13:00come from? 100% of new business comes
13:02from
13:03>> the CPAs almost besides the one or two
13:05that come from Instagram. So, if that's
13:07the case, the big point of leverage in
13:09this thing is that each CPA firm, let's
13:12say, is roughly worth 500 to 750,000 a
13:15year in commissions to you.
13:17>> So, that's a lot of money per CPA firm,
13:18which means you can get really
13:19aggressive in attracting them um to send
13:22you business.
13:24>> And my margins on that business are like
13:2590%. Right?
13:27>> Technically 88 because I got to pay my
13:28broker,
13:28>> right? But I think that's the I think
13:30that's the that's that's the way that I
13:32would I would do it. Like if I were to
13:33attack the business today, I'd lop this
13:35part off. If I'm confident, which I am,
13:37that you can sell houses without saying
13:38I also do the management. I think you've
13:40got the sales chops to do that. Um,
13:42you'll sell way more houses because
13:44you'll get half your time back or more.
13:46And you can take that time to go get
13:48from four CPAs to 40 CPAs. That to me is
13:51the game plan.
13:52>> Awesome. Thank you as always.
13:54>> Appreciate you, man. Congrats.
13:55>> So, I learned this from Sam Bactiar, who
13:57was the first person that I So, I
13:59mentored.
13:59>> Oh, he was a wicked guy.
14:00>> Oh, yeah. You knew Sam, right? Sam was
14:02wicked.
14:02>> So I so when I moved to California cuz I
14:04wanted to get into gyms, I worked for
14:06minimum wage at Sam's gym for three
14:07months before I started my Yeah.
14:09>> And so cuz I looked on the internet and
14:11I had a white collar job um doing making
14:13good money and I quit that to work, you
14:15know,
14:15>> a minimum wage job at a gym. So my my
14:17Persian father was horrified. Um but
14:20Persian, that's right. Yeah.
14:21>> And so um and so I'll tell you exactly
14:23what I s I saw him do. He didn't teach
14:25it, but I learned it from him is that
14:28and it'll make sense. So Janelle is is a
14:31personal training client and we're
14:32working out and she doesn't put her
14:33weights away. I'm a personal trainer. I
14:35got another meeting I got to get to.
14:36What do I say? Do I say, "Hey Janelle,
14:37can you put your weights back?"
14:39>> No. You're the trainer. You put the Like
14:41that's a terrible, terrible frame.
14:43Right. Sure now. I saw Sam do this and I
14:45applied it to every single sale my whole
14:47life afterwards. He said, "Janelle, I
14:50know you ain't about to leave my gym
14:51without putting your weights back." And
14:52then she's like, "Ah, fine, Sam. I'll go
14:54put the weights back." And now it's fun.
14:56It's light. It's not accusatory at all.
14:59Right.
14:59>> And so
15:00>> I could see him saying this. The way you
15:01said it. I could see him.
15:02>> That's how I learned I learned it from
15:03him. Right. His ghetto fabulous like
15:06could get into. And he would do that
15:07when he wanted to say something that was
15:08harsh to somebody.
15:09>> And so I would be like, Janelle, no. I
15:12know you didn't just ghost me on this.
15:13I'm heartbroken over here. I've got this
15:15big bowl of tears. I was like, I don't
15:16know what to do with it. I was like, I'm
15:18on the edge of a building and you know
15:19what? I'm just messing with you. I'm
15:21sure something came up. I was like, at
15:22the end of the day, I got this thing for
15:23you. Um, I got the medium set aside. No
15:25worries. I'm sure something came up.
15:27Same time tomorrow work.
15:28>> Uh-huh. And just go right back into the
15:30meeting,
15:30>> right? Just go right back in.
15:31>> Just
15:32>> and if she goes me again, you know what?
15:33There's a hundred other Janels.
15:35>> And like basically what you just taught
15:36was setting the frame. I started direct
15:38sales when I was 14. I said I would
15:39always set the frame where they would
15:41know how to treat me. So if I cold call
15:42somebody and I ask them how their day is
15:44and then they ask me back, "How's your
15:45day?" I'm going to be like, "Shit, my
15:46day is fantastic. Every single person I
15:48talk to neighbor, it's so freaking nice
15:49and they're so kind." And then boom,
15:51they're like, "Well, now I can't treat
15:52Daniel like a piece of shit." Right? So,
15:53it's almost the same thing that you just
15:55did in follow-up. You just you got to
15:56just make them feel like a human because
15:57people are people. They don't want to
15:58make you feel bad. It's like we
15:59sometimes think prospects are bad
16:01people, but maybe they just forgot.
16:02>> Honestly, like the biggest thing is
16:03people are busy. People have very low
16:05attention and like you have one thing,
16:06but so does a hundred other people. I
16:08just I got rejected so many times that I
16:10just don't take it personally. I just
16:11really I genuinely don't take it
16:13personally. Right. But I think the the
16:14frame that you said at the beginning
16:15because I would also call leads up that
16:17would opt in for internet leads, right?
16:18And so the very beginning the frame
16:20right I had all these little like these
16:21tiny little things you do in the
16:22language where you say hey John pause
16:26and he's like hello like this is Alex
16:30and he's thinking he's like who the [ __ ]
16:32who's Alex I don't know like what's this
16:33number right it's like from Facebook you
16:36sign up for the six week challenge yeah
16:38on the internet yeah I'm I'm just I'm a
16:40real person right across from 7-Eleven
16:42on on X and Y yeah how's it going today
16:44yeah don't worry I'm not I'm not one of
16:45the crazies and not not I'm not after
16:48I'm not in uh in Nicaragua or whatever.
16:50And he's like, "Haha." Like, "Okay,
16:51cool. Oh, so did you uh did you hear
16:53about us uh from I mean, I messed the
16:54script. I haven't done it forever." But
16:56um so did you see us because of uh the
16:58ad or was it because you hired us on uh
17:00the local news best boot camp or was it
17:03uh you know, Oprah Oprah did a special
17:05on us. Was it one of those things? Now,
17:07if you have one award you've ever won in
17:09your entire life, even if your mom gave
17:11it to you, you'd be like, "Did you hear
17:13about us on uh on Internet's Best Boot
17:14Camps?" And they're like, even if they
17:17haven't, they now are like, "Oh, this is
17:18one of the internet's best boot camps,
17:20right?" And so they're like, "Oh, these
17:21guys are legit." Oh, yeah. We won the
17:22best customer service anyways. You
17:23probably don't care about that. So, what
17:25what can I help you with, man? What
17:26what's what's going on? Why why'd you
17:27sign up for a weight loss thing?
17:28>> And then they're like, "You know what?
17:30My wife's been bugging me. I'm not
17:31fitting into many of my old suits, and I
17:33don't want to buy a new wardrobe." I'm
17:34like, "All right, well, I guess we got
17:36two options. You can keep doing that or
17:38uh I got a four o'clock today. That work
17:40for you?" And then, you know, we go from
17:42there, right? And so like having that
17:43preface that you said and I I mean I
17:46think to I mean especially on phone
17:47tonality matters so much
17:49>> and I've sold a lot through humor
17:52>> and harder to teach but like I feel like
17:55I was able to ask very hard questions
17:57using that kind of Sam frame where that
18:00like where you know lady says
18:02>> I got to talk to my husband and I think
18:04decision maker is one of the hardest
18:05ones to overcome in general right I mean
18:07of the of the obstacles I prefer to talk
18:08to someone in power but and so the way
18:11that I would overcome that I'd be
18:12What if your husband says no?
18:14>> Uhhuh.
18:15>> He's like, "Well, I guess I wouldn't
18:17know." It's like, "But what does that
18:18mean in five years?"
18:20>> I mean, is it are you going to keep I
18:21mean, how much have you how much weight
18:23have you gained in the last 5 years? And
18:24they're like, I'm like, "What if it
18:25keeps going that way?" And so I call it
18:26childlike curiosity where you're like,
18:28"Huh, that's wild. Fascinating. Tell me
18:31more about that." Like I'm never So I
18:33call it like over overcoming the
18:34obstacle is a dance, not a fight. It's
18:36seduction, not rape. Ah,
18:37>> right. And so I wanna I want to dance.
18:40And so if they've if we're in that in
18:43the throws of that, I want them to feel
18:44zero aggression. And I want to I want
18:46them to be like, "Wow, he's really
18:48curious." I'm like, "Well, what what
18:51what do you think about what are the
18:52variables that make the decision?"
18:54>> And they're like, cuz they're like, "Oh,
18:55I got to think about it." I'm like, "Oh,
18:56what's your main concern? Let's do it
18:58together."
18:58>> Yeah. Yeah. Sure. Sure. Right. And so
19:00then then then because I want them, and
19:02this is the thing a lot of sales people
19:03is they back away from the hard question
19:05they know they need to ask.
19:06>> And I don't want them to be deciding
19:08when they leave. I want them to make the
19:10decision in front of me. It's like,
19:11you're probably wondering if we're just
19:13foolish yet. And you know what? I'd be
19:14wondering that, too. So, how could I
19:17prove it to you?
19:17>> Right.
19:18>> Right. And then they have to come up
19:19with the criteria for me.
19:21>> Love that.
19:22>> And so, I want them to tell me how to
19:24sell them.
19:25>> Yeah. Yeah. Yeah.
19:26>> Like, what would make you feel 100%.
19:29>> And then they name because the thing is
19:30is this is the only time they've ever
19:32had this conversation. So, that on the
19:33spot they're going to think like two
19:34things. I'm like, oh, I can take care of
19:36that right here. Fair enough. That make
19:38does that make you feel better? Sure.
19:39All right, let's knock it out. And then
19:41it's just I I I mean, and obviously this
19:43takes reps to because some people in the
19:45early days of sales, your adrenaline
19:46kicks in. You're like, I need this sale.
19:48And you're like your teeth come out. And
19:49I love this term commission breath. It's
19:51like you start having commission breath,
19:52right? And then everyone goes on
19:53defensive because you sound like you're
19:55selling.
19:56>> And so I've always I even like my team
19:58knows this like I [ __ ] my head and I do
20:00childlike curiosity. So I even have a
20:02mental cue. It's like, huh? And that's
20:03whenever I want to get like offensive, I
20:05always go huh. And that it deflate it
20:08like it completely disarms. I'm like and
20:10then it gives me a second. I'm like,
20:11"Huh?"
20:12>> Well,
20:14what if Well, let's play it out. So, if
20:17you didn't have the money to do this and
20:19you spent the money, what would happen?
20:22>> Mhm.
20:22>> And they're like, "Well, I wouldn't be
20:23able to afford groceries." And I was
20:25like, "Well, I guess the weight loss
20:26problem will solve itself then, right?"
20:28And then you get the joke. And they're
20:29like, "Haha." Oh, it's like, "No, let's
20:30play it out." Well, I mean, you're not
20:31Have you ever bought something you've
20:32ever been like, "Man, that was a lot."
20:34But you're still here, right? You're not
20:35homeless. Okay. So, how important is
20:37this to you? Right. And so, we can and
20:38like you can sidestep these things, I
20:41think, with a lot of tone and being able
20:42to
20:43>> your body language the way you just did
20:44it.
20:45>> Sit. You can sit in the pocket. I want
20:46to be able [clears throat] to sit in
20:48that spot where people are
20:49uncomfortable, but make them feel
20:51comfortable so that they can actually be
20:52honest with me. And then to your point
20:54of like what's the one zinger? Honestly,
20:56I haven't had it like I teach, right? I
21:00want to let's get back in like what's
21:02you and I like to do the big zoom out.
21:03And so like if I feel like I'm on this
21:05weird mass like you know you're like in
21:07Pluto and you're like what's going on
21:08here? Right? You're like hey let's zoom
21:10out. You're trying to lose weight. We
21:13sell weight loss. What's getting in the
21:15way here? Right? And then you and then
21:17they're like
21:18>> I just don't know if it's actually going
21:19to work. And I'm like that makes sense.
21:21That makes you like every other person
21:22who signed up and then was successful
21:24because if you know what if you didn't
21:25think that I'd be worried about you
21:26because if you thought 100% you're
21:28because then I'd think you'd have false
21:29expectations. It's be a lot of work
21:30right? And then all of a sudden it's
21:31like you're confirming their suspicions
21:33rather than trying to battle them. And
21:35so I think a lot of people try and like
21:36invalidate what someone's feeling about
21:39the decision rather than actually
21:40leaning in because it's kind of like
21:42Eminem when he when he um in the rap
21:44battles where he owns all of his
21:45negatives. It's like I want to I want to
21:47say yeah you're right. This is super
21:49expensive. It's going to be really hard.
21:50You should still do it like because then
21:52it's like all of those things that they
21:54want to give as obstacles I agree with.
21:56And then still say that's a great reason
21:57to buy.
21:57>> I threw myself under the bus first. Now
21:59you can't show me. Sure person on the
22:01other end almost expects especially when
22:02they know it's a sales person they
22:04expect a certain pattern from a
22:05saleserson meaning you're the saleserson
22:07Alex and I'm Daniel the prospect and I
22:08say yeah you know I just don't have the
22:10money right now my pattern is now once I
22:12tell you this I'm thinking for you to be
22:14competitive for you to argue with me and
22:16be like well that's the exact reason why
22:18you should buy do it right now and like
22:20right to pressure me I'm expecting that
22:22pattern response I tell people I'm like
22:24whenever somebody gives you an objection
22:25do the opposite of what they think
22:27you're about to respond to like they
22:28expect you to combat with them, you
22:30know, be argumentative. Try to close the
22:32deal right away. Smile. Like just give
22:35them a smile. Laugh. Be like, "Yeah, no
22:37problem." Even just like wave it off
22:38even that's not even a worry. Don't even
22:40worry about it. Drop their shoulders cuz
22:41now they're like, "Wait, wait, wait,
22:42wait. Salesperson malfunction in my
22:44head. This person was supposed to argue
22:46with me and now they're not arguing with
22:47me. They're almost like agreeing with
22:48me. They're acknowledging it right now
22:50and they're on my side. This is weird."
22:52And
22:52>> you can't disagree with someone who asks
22:53you a question. M
22:54>> that's the like the number one thing
22:56when you're in that the high pressure
22:57situation is I want to make no
22:59statements. I don't want to do any
23:00commands and I don't know any any
23:02statements because there's nothing they
23:03can disagree with me on. So if someone
23:05says you know I I I don't have the money
23:07and sure we could say well it's about
23:08resourcefulness not resources. Like we
23:10can go through all these these things
23:11but like when I when I really get down
23:13to it I'm like
23:14>> well man like that's tough. So what's so
23:17what's what right now are other
23:19priorities for you? Because like I want
23:21to make it work for you but if it
23:22doesn't work it's fine. But like because
23:24at the end of the day, you're going to
23:25have x amount of dollars, right? Okay.
23:27And you're going to vote with your
23:28dollars about the things that you care
23:29about. That makes sense, right? Okay,
23:30cool. So, the question is, what are you
23:31voting for that matters more to you? And
23:34if it's like, I got to pay rent and my
23:36wife, you know, we've got a baby on the
23:37way. I get it, dude. I get it. Maybe
23:38this isn't the priority right now. Maybe
23:40it will be in the future. But the
23:41question is like, how long do you want
23:43to not be able to get the things that
23:44you want in your life when you really
23:46want them? How long do you want that to
23:47be a problem in your life? That's if I
23:48was selling a sales training.
23:49>> Sure. Sure. Sure. And so then it's like
23:50but now like we're I'm back to question
23:52asking right and so rather than being
23:54like to your point like well that's the
23:56perfect like um and I think the tone
23:58matters so much like if if people this
24:00is why role playing is so important
24:02because if if someone has said this to
24:03me a hundred times and I know exactly
24:05what I'm going to say to respond. I
24:07don't have adrenaline because I start
24:08saying the words before I'm even
24:11thinking because I can be present not
24:13trying to remember what I'm going to
24:14say. I can be looking at the person and
24:16that's the whole like Leila's whole
24:17frame of like human first. Like if I
24:19actually really cared about this person,
24:20how would I talk to them? Like if it if
24:23it were my mother and she and she really
24:25did want to lose weight and she really
24:26didn't and she said I don't have the
24:27money, I'd be like well well what else
24:29are you spending money on? Like I mean
24:30to be clear is this important to you?
24:32Because if it's not like I'll stop right
24:33now. I'm not like I don't want you to do
24:35something you don't want to do it. It's
24:37like I like to set that frame overall
24:38and I'm like you can even like you do it
24:40subconscious like I'm leaning back. I'm
24:42doing this. It's like hey I'm not
24:43>> I'm exiting.
24:44>> Yeah. And so I I mean I tell this we
24:46have a lot of little isms but like we
24:47always want to sell from our back foot.
24:49I never want to be leaned in. I always
24:50want to be like if you want it I'm here.
24:52>> And so it's like what else what else are
24:54you considering? Like where else are you
24:55allocating? I get it cuz like and if you
24:56need to that's where those key stories
24:58so like if there's ever something that I
24:59like to have in my holster. It's a story
25:01of someone just like them that just
25:03walked out the door. Right. It's like
25:04you remind me of Susan. She actually
25:06came in um a couple months ago. We had
25:07almost an identical conversation. She
25:09could be your sister. And
25:10>> and we got to this point in the
25:11conversation where she actually was
25:12struggling with this. And so I was like,
25:14"How important is this to you?" And she
25:15was like, "It's really important." And I
25:16was like, "Well, you're a single mom and
25:18you got four kids." I was like, "I get
25:20it." And I was like, "Well, what what
25:21can we do?" And she was like, "I think
25:23I'm going to start driving Uber." I was
25:24like, "Are you sure?" I was like, "It's
25:26going to be you alone at night." And
25:26she's like, "This is important to me.
25:28Like, I'll make it work." And you know,
25:29the kids like, "Well, I'll just I won't
25:31go out to dinner one night a week. I'll
25:33make it work." And I was like, "Okay,
25:34you sure?" And she was like, "Yeah." And
25:36you know what? Susan's down 60 pounds in
25:38the last six months since she made that
25:39decision. And the thing is is like do
25:42you what do you want to be? And then
25:43she's like I'm at 200. I'm like what do
25:45you want to be at? She's like my high
25:46school. I'm like if that happened would
25:47it be worth it?
25:48>> And then she's like yeah. I'm like well
25:49the question is what do we need to do to
25:50make it happen?
25:52>> You know like and you and then and then
25:53all of a sudden it's like right we're
25:55back in. And so I just I hardcore
25:58believe that you overcome objections
26:00simply by asking the question of what
26:01they were intending. I think a really
26:02good belief for sales people is that if
26:04you don't close a sale it means you
26:05didn't understand the prospect enough.
26:07Because if you literally knew every
26:08single thing about a prospect, like you
26:09were God and you knew every single thing
26:11that had ever happened to that person,
26:12you could close them.
26:13>> And so simply having the frame of
26:15curiosity, which is probably the number
26:16one thing I teach our guys is like you
26:18have to genuinely be curious.
26:20>> And so it's like what brought like
26:22that's why the first question is what
26:23brought you into clar clarify why
26:24they're here. Yes.
26:25>> Right. And like what have you struggled
26:26with? Why did why why did that suck?
26:28Okay, that's good for me to know. What
26:29else have you done? Okay. What are the
26:31things that you know and we just walk
26:32our way through this? Yeah. Yeah. And
26:34that's that's what I um I try to get us
26:36out of.
26:37>> Let me walk you through how to manage a
26:38sales team. So, who you have a sales
26:40team? You have a sales team. You will
26:42have a sales team. Um you have a sales
26:44team.
26:45>> I have a a sales person. [laughter]
26:48>> Sales person. Uh Jack is a sales team.
26:51>> You will.
26:52>> Um you have many sales people. That's
26:55right. And you have salespeople.
26:57>> PCC. So, just about everyone here. And
26:59you have sales people, man. 100% hit,
27:01right? Look at that. Okay. So, I'm going
27:04to walk through this because I think
27:06it'll be valuable for everyone.
27:08Okay. So,
27:11one, you guys will get a copy of our um
27:13closer handbook, which is like what we
27:14hand every new hire. It has all the
27:16onboarding for like how we ramp everyone
27:18up, what their training schedule is, how
27:20we do every aspect of the training. Um
27:22but I'll I'll walk through this at a
27:24high level. So,
27:28okay. [sighs and gasps]
27:34So, weekly we do a one-on-one between
27:36the sales manager and the salesman. Uh,
27:39and then we do a team meeting.
27:42I'll explain what these are in a second.
27:44Um, and then daily we do
27:48team training.
27:50We put training above everything else.
27:52So, this is blocked on every person's
27:53schedule. No one can can schedule sales
27:55calls during sales training. um because
27:57we just it's like it is the most
27:58important, you know, half hour of the
28:00day. Um we schedule it at a time that is
28:03the lowest likelihood sales hour. So for
28:05us, 10 a.m. is the is the deadest time
28:08um for sales for us in PST. And so
28:10that's when we do 10 to 10:30. The only
28:12reason that you're allowed to skip is if
28:14you are late, you're on a call and
28:16you're closing and it's bleeding into
28:18this the the practice. It's the only
28:20time you're allowed to come late.
28:21Otherwise, you show up on time. Um,
28:23besides that, the way that it works is
28:25it starts with kudos, this is important
28:27because it's like if you want to
28:28reinforce behavior, um, there's kudos
28:32and shout outs. And so, basically, kudos
28:33is from the manager is him saying, "Hey,
28:36so and so did an awesome job." So, it's
28:38like, "Hey, Pete, you're leading the
28:39leaderboard for referrals or for
28:41reviews." If you want him to leave get
28:42more reviews, the first thing you shout
28:44out is reviews, right? Then you've got
28:47team shout outs, which is the guys
28:50giving each other, you know, kudos,
28:52being like, "Hey, John, you helped me
28:53out with that, that you helped me
28:55roleplay this thing that I was
28:56struggling with and the next day I was
28:57able to close somebody using the thing
28:58you said. Really appreciate it." Right?
29:00And like this is a cultural thing. Like
29:02the manager has to lead the culture
29:04because fundamentally like in every
29:06organization or department, the leader
29:08is always at fault, right? And so if the
29:10sales team isn't doing what you want
29:11them to do, it's because the sales
29:12manager isn't doing what they need to be
29:14doing. And so we've got kudos, which is
29:16from the manager. We've got shout outs,
29:17which is kind of peer-to-peer.
29:20Um, and then we go into role playing.
29:22And so role playing follows a specific
29:25calendar. Now, I've like I've done these
29:27things more times than I can [ __ ]
29:29say. Um, this is this is the best. I've
29:33like we've done a lot of teams. This is
29:35the best way to do it. Um, so every
29:38script has four portions to it. You have
29:41an intro, you have disco, so discovery,
29:46you have pitch,
29:48and you've got close.
29:52And so that roughly translates to
29:54Monday, Tuesday, Wednesday, Thursday. So
29:57it's like what do you do on Friday? On
29:58Friday, we do hot topic. So whatever
30:01thing the guys are struggling with that
30:03week is what we work on. And I've done
30:06it where like all we did was objection
30:08over objection uh handling which is
30:10basically close. Um
30:13like we work all the way through and we
30:15have to do that because like if you just
30:16do objection handling you get way too
30:17much too many objections because they
30:18[ __ ] up the intro, right? If you just do
30:20intro they [ __ ] up the close. And so we
30:22have to sharpen the whole sword every
30:24week and that's what keeps everything
30:25top of mind. And so when we role play
30:28manager models it does it in front and
30:31says great. Does it with one person
30:33models it gets it locked in. They do it
30:34right. Then they break into the teams
30:36and they do it with each other. That's
30:38how we do it.
30:39>> Zoom meeting works.
30:40>> Yeah, Zoom works fine. Same exact idea,
30:42but that is the that is the team
30:44training and that happens daily. Now on
30:47a weekly basis, we do the one-on-one.
30:49The one-on-one is split into three
30:50portions. The first one is personal,
30:52which is like sounds obvious, but like
30:54how you doing? Now, if someone just got
30:56broken up with or their dad just died or
30:58whatever the hell, then it's like, how
31:00you doing? Like, it's purely dedicated
31:02to that because if your girlfriend just
31:03dumped you, you're probably not thinking
31:04about your [ __ ] objection handling.
31:06And so, we're just going to try and help
31:07you do that. Assuming that your life
31:09isn't [ __ ] the next thing that we do
31:11is short-term. So, what's your quota?
31:14What are you working on right now? So,
31:15that means like, hey, you're like, I've
31:17noticed so uh this oneonone, they should
31:20be turning in three calls beforehand.
31:23Usually it's calls that they're
31:24struggling with like, "Hey, I thought I
31:25should have closed this guy. Like, I
31:27[ __ ] this up. Um, and like can you
31:29help me on it?" And so it's like, "Hey,
31:31the manager can detect like you're
31:33[ __ ] up the intro. You're hold you're
31:34not holding the frame or like you're
31:35letting this guy take control of you.
31:36Here's a way to script it. Let's role
31:37play it." Right? So this is basically
31:39tutoring on the specific thing that that
31:41person needs help with. If someone's
31:43hitting quota and they're doing an
31:44awesome job and their life isn't screwed
31:46up, then we go to long term, which is
31:47like, "Dude, you're crushing it. What do
31:49you want to do here long term?" So then
31:51we're talking about career. Like where
31:53do you see yourself in the next few
31:54years? What skills do you want to
31:55develop? How can we invest in you?
31:57Right? I don't have any today, but
31:59normally I have a couple sales guys that
32:00are in the back of the room because
32:01they're like, I just want to learn more
32:02about business. I want to learn about
32:03more more about marketing. And so if
32:05they're in this room for like an L3 day,
32:07that's like a a carrot. That's like a
32:09very big it's a big gift that we can
32:11give. I have a lot of people who work
32:12for me, a lot of people want to be in
32:13this room, right? And so it's a great
32:15way to reward, you know, reward the
32:16team. Now, um, from a long-term
32:19perspective,
32:22this goes for everyone, um, but any
32:24repeated role within a business, I take
32:27the position that you should have kind
32:29of a a biodal or two kind of a
32:31two-pronged,
32:32um, career path. And so, one of the
32:35issues that you're probably dealing
32:37with, um, is that some of your sales
32:39guys who get good sometimes leave or
32:41they get head-hunted, right, by some of
32:42the other guys. So it's like how can I
32:44continue to keep these people long term
32:46especially in repeated roles sales
32:48editors customer success like these are
32:50where you have a lot of headcount.
32:52So, let's just I'll just use sales, but
32:55like let's say you have a setter, excuse
32:57me, setter and let's say you have a
32:59closer. All right? So, normally you look
33:02at a company and there they've got
33:03setter and closer and that's the career
33:04progression. That's the whole thing. But
33:06if you're smart about it, you can go
33:08junior and senior and then junior and
33:12senior. So, this gives you 1 2 3 4 5 six
33:16career progressions. Now, at the same
33:18time, let's say I'm just using simple
33:20math here, but let's say it's like you
33:21get 10 bucks an hour, you get 11 bucks
33:24an hour or per close or per whatever,
33:27and then you're getting
33:34again the numbers don't matter. I'm just
33:36making it up. And so, when someone
33:38starts, they're a junior and they're
33:40starting at 10 bucks. Now, within the
33:42first 30 days, I want to give them a
33:44promotion as long as they just do the
33:45basics. They made it the first 30 days
33:47and it's like you want to give them
33:48something to call mom and dad home about
33:49and say, "Hey, I got a promotion."
33:50They're like, "Oh, that's awesome,
33:52sweetie." Like, and it's like, "Yeah, I
33:53just got a raise." So, I got a raise,
33:54not a promotion. So, that's the first
33:56kind of career advancement. Then we say,
33:58"Great." At uh like after they do the
34:00next kind of uh tier, it's like, "Hey,
34:02you got your first 10 sales or you set
34:04your first 10 sales." Um, so you're no
34:06longer a junior setter. You're now just
34:08a setter. And so with that, they get a
34:10change in title, which does matter to
34:12people. And then from setter
34:15here, they get their next they get their
34:18next bump. Hey, you got your first 50
34:19sales or whatever it is. So now they get
34:21another bump in pay. And then you become
34:25a senior setter, which gives you two
34:26perks. You don't have to work weekends.
34:28And you're next in line. You qualify to
34:32become a closer. I'm not saying you get
34:34the job. You're just now qualified. When
34:36the next opening comes up, you're on the
34:37short list. And that could be a year.
34:39Who knows? But you're qualified to do
34:40it. No one else is qualified until you
34:42get to here. From here, you're like,
34:44great, now I became
34:47a junior closer.
34:49From there, junior closers start at 25.
34:52Boom. And now we're at they go to 30.
34:55When he gets this, you get your first
34:5610, you know, 10 kills. It's like great.
34:59Now we go seven, you go same, repeat,
35:01repeat the same motion again. Eight,
35:04nine. And then this can be like and for
35:07us we have three kind of positions from
35:08here that they can go like you can go
35:10manage you can be a manager you can
35:12manage a port co
35:17you can work as an adviser. So we have
35:19obviously directors of sales who help
35:20people build their sales teams and stuff
35:22and so it's like this gives them career
35:24optionality
35:25>> doing this with every position.
35:27>> Yeah. With the positions that are
35:28repeated. Yeah. So the ones where you
35:30have a lot of headcount this this works
35:32really well. And so now when someone
35:35walks in, we're like, well, what, you
35:36know, what's a career here look like?
35:37It's like, oh, dude, we have you have a
35:38lot of advancement that you can do. And
35:40so the idea is like I want someone to
35:41feel like every every, you know, in the
35:43beginning it's like every month or two,
35:45you want to feel like some progress. And
35:47then as they get further in, you can
35:48start kicking it out 3 months, 6 months,
35:50even a year. Um, as they get further
35:52along and it's like you install
35:53something like this, like we have there
35:56was a company that, um, JJ and I made an
35:59offer on, really liked it. Very sad. Um
36:01it was a nail salon chain. Um I know a
36:04lot about nails carry, you know. Um and
36:07uh one of the genius things that this
36:08this lady had done um is that she
36:10created an amazing career progression
36:12for uh nail technicians. And so she had
36:15a progression like this. And for every
36:18like x amount of, you know, jobs they
36:20did or whatever, um she would teach them
36:22a new skill. And it also it sped up on
36:25ramping for her because she just had to
36:27teach them the most basic skill to do
36:28the one thing. And then once they proved
36:30they would stick past a certain level,
36:31she would teach them the next thing. And
36:33then their billables went up because
36:35they could do the little the little
36:36stars. And then she would teach them how
36:38to do a little monkey or whatever the
36:39[ __ ] right? And so she would show how
36:41to basically do higher and higher level
36:42skills. And so they got paid more and
36:44more per hour. And so she would take
36:45girls who didn't have a high school
36:46diploma, get them to 75,000 a year
36:48working as nail techs. And like that was
36:50twice the industry average. And so she
36:52keep them for years. And that was like
36:54her big genius. And then all of her nail
36:56salon girls were way better than
36:58everyone else's. uh you know texts and
37:00so that was like the genius behind it
37:03and so I like that.
37:04>> Yeah.
37:05>> For instit
37:11um
37:13>> just add a add a little perk if you can.
37:16So it's like you get the best parking
37:17space, you don't have to work weekends
37:19or you don't have to work after six or
37:20the further away job. you can come up
37:22with like what are all the things that
37:23they [ __ ] and moan about instead of
37:25having it be a favoritism or like a um a
37:29seniority thing. It's just like dude
37:31that's the rank man like and you're
37:33going to get there soon. Just like stay
37:34at it. And then with this total
37:36advancement it's like okay well what do
37:38we what are we measuring them on in
37:39order to advance them? I like um like
37:42gross output. So what I mean would be
37:46like um once you do
37:50a hundred jobs, once you do 200 job
37:52because the idea is I don't want it to
37:54be on tenure because I don't want people
37:55to just think like as if I just stay
37:56here I'm going to advance. I want
37:58someone to be incentivized to say like
38:00well if I can close a 100 deals in two
38:02months rather than 6 months I can move
38:04up the ladder faster. Well what does
38:06that mean? They're going to work
38:07weekends. They're going to work nights
38:08because they're just pulling the future
38:09forward. And so I want it to be on gross
38:11output and I know that like 200 sales
38:14should take if they're crushing it two
38:16months. If they're not crushing it,
38:18three months or four months. And so I
38:20have like it can they basically somebody
38:22can go move really fast and go in 18
38:24months or someone can move medium and do
38:26it in three or slow and do it in four
38:27and a half. And so like you can kind of
38:29control to a degree based on your work
38:31ethic and your skill.
38:32>> So would you do the same thing with this
38:33like an inhome salesperson?
38:35>> Yeah. Like
38:36>> 100% 4% 5%.
38:38>> Yeah. And you don't have to do
38:39percentage. You can do absolute amounts,
38:40whatever. Yeah.
38:42>> How would you do this for like a
38:44non-sales role like like a clinician
38:46like
38:47>> number of hours, number of
38:48consultations.
38:50>> Yeah. Okay.
38:50>> Mhm. And I would and this is important
38:52when you have whenever you do any kind
38:54of KPI, it has to be paired. And so for
38:57if we do sales volume, we also have to
38:59make sure they're they're doing that
39:00volume with an average close percentage
39:02of above X. So I don't want you burn
39:04through my leads, right? And so it's
39:06paired. And so if I'm doing clinician,
39:08usually it's speed and quality or tend
39:09to be you want antag antagonist
39:12uh metrics to be paired to come up with
39:15like northstar. So for the clinician
39:17it's like uh number of sessions and five
39:20star reviews or that way they're they're
39:23keeping the quality high.
39:24>> Yeah. You work with you've done 100
39:26papers now and you you get you know five
39:29stars or
39:31>> no complaint. Yeah. A complaint, you
39:32know, zero refund, you know, whatever
39:34the whatever the metric is. How could
39:36you do that with because this fits in
39:38with with our model.
39:39>> I'm glad I brought it up.
39:42>> Like our our our vettees.
39:43>> Yeah.
39:44>> Sometimes I think are are more personal
39:46and actually sell [ __ ] more than say our
39:49doctors do.
39:50>> Yeah.
39:50>> And maybe implementing that with
39:53>> with our structured pay.
39:54>> Totally
39:58>> helpful.
39:59>> Good. So this is how we this is what the
40:02training looks like. Um, and then the
40:04team meeting uh runs the same way as
40:08this, except we play game footage uh in
40:11front of the team. So, it's like, hey,
40:12let's watch Danny, he did XYZ, and then
40:15they're going to focus this meeting,
40:16which is the this guy. Um, that meeting
40:20is just going to be on game footage that
40:21we watched
40:23that everyone needs to work. So, like
40:24sometimes it's like for you it'll be
40:25like seasonal.
40:27>> And so, whatever the thing is that's
40:28happening right now, there's usually
40:30something that's going on.
40:31>> Yeah. what whatever the like a a
40:33thematic or trending objection or
40:35something that comes up. That's what
40:37we're going to talk about in the off in
40:38the in the extra slot.
40:42I've done a lot of sales structures.
40:44This works.
40:45>> So, you think training for me, I think
40:47training is probably biggest thing. Um
40:51would you like at what point would you
40:54say like okay I actually cut hours out
40:56of actually seeing patients
40:59to then do training like cutting that
41:01out of like where do I see that number
41:03of like how much can I remove?
41:05>> We do 30 minutes daily.
41:07>> Okay. And uh for new hires who are doing
41:11like talking based roles um it's a
41:14two-eek on rent
41:17and so we'll do first week is all
41:19basically they'll do two a days with the
41:21manager and in between they are
41:24alternating between ride alongs
41:26basically watching people sell um and uh
41:31script script memorization and so I've
41:34already said this a lot of times but the
41:36way that you memorize a script is you
41:37not two versions. You have a black
41:40marker and then you have them say the
41:41script out loud and then black out a
41:44word and then say it again. And if they
41:45[ __ ] it up, they look at the clean
41:46version and they do it again until they
41:48get it without [ __ ] up the word and
41:50they black out the next word. And that
41:52means that the amount of times they
41:53repeat the script is the amount of words
41:54that are in the script. So you have 400
41:56words, they're going to say it 400
41:57times. And by the time you do that, they
41:59don't [ __ ] think about the words.
42:02have them do that to you or
42:04>> no on their like no the they're going to
42:05do that on their own because like we
42:07don't have time for that. Um but it'll
42:09be evident because at each so there's
42:12you'll see it in the in the sales
42:13handbook but there's three milestones um
42:15that they have to get through during the
42:17on-ramp. Uh so it's like the first thing
42:18is scrub scrub memorization. Like if you
42:20can't memorize the words then what are
42:21we talking about? Like you can't even
42:22say the words we already know work. So
42:24you don't get to talk to anybody until
42:26you memorize that. Once you memorize the
42:28core script, then we're going to do uh
42:30what we call recaps, which is basically
42:32taking uh someone's stated pain or
42:36problems and then recapping it or
42:38summarizing it into this is the L part,
42:40the labeling with a problem. So, what it
42:42sounds like is if you had more leads,
42:44the business would grow. Does that sound
42:45about right? Okay. So, this is a
42:46marketing problem. It still takes skill
42:48to be able to abstract what they said
42:50into, oh, it's this bucket, this bucket,
42:52this bucket of problem. And so, that's
42:53the second tier. So you know the words
42:55and you can listen to what they're
42:56saying and recap it in a way that then
42:58maps to what we sell. The third step is
43:01that they have to learn how to close and
43:02overcome overcome objections. And so
43:05each one of those has a test where the
43:07manager says all right let's like let's
43:08go through the script and if they [ __ ]
43:10up the script they don't move on. And if
43:13they can't move on past like within two
43:14or three days if someone can't get like
43:16past the script like we don't even
43:18there's no point. Once someone passes
43:20all the milestones they get a half
43:22calendar. So they get half the like they
43:24get a half day essentially of leads
43:25because the most expensive thing I can
43:27do is waste leads, right? And so they
43:29get a half day. If they hit KPI uh for
43:32five days in a row, they get a full
43:34calendar and they're on-ramped. If they
43:36don't hit uh KPI within those five days,
43:39they go back to remedial. They basically
43:41get one more kind of like on-ramp around
43:42their specific issue. They get another
43:44half ramp up. If it doesn't work,
43:46they're out. If it does work, they're
43:47in.
43:49That's we can tell pretty quickly if
43:50someone's going to make it or not. But
43:52we have very structured training and I
43:54think that's what most like most people
43:55just like hire sales people and hope for
43:56the best. Yeah, it's okay, dude. 90 it's
43:5990 it's 98% of companies. It's just like
44:01I I also like
44:04am one of the best at this like I'm like
44:07it's like what I'm known for.
44:09>> So
44:11it just like I will say this but maybe
44:13even hearing this it's like we're not
44:15training enough. It's like yeah if
44:17that's the big takeaway that you got
44:18then you got the right takeaway. We
44:19train a lot.
44:21Like JJ, how many times did you do the I
44:23mean actually you're not in value adders
44:24anymore, but like you So most of our
44:26adviserss have crossrained on multiple
44:28of the presentations, but like how many
44:30times did you do value adders before?
44:33>> 80 times I had to replace myself today.
44:38So I didn't
44:39>> Yeah.
44:40>> And the new guy was like, "Do it 80
44:41times." He laughed and I was like, "No,
44:43do it 80 times." And then he did it 80
44:45times and he crushed.
44:46>> Yeah. And then you've crushed his first
44:47try. It's like or at least his 81st draw
44:49he crushed it. Yeah. I mean Tim, how
44:51many times did you do it?
44:52>> They made me learn two one week to
44:54>> m They made me [laughter]
44:57>> literally to JJ's point I ran it 80 by
45:01myself and Ed made me do it in front of
45:02him 20 times
45:04>> and then another one back next 100.
45:08>> Yeah. So it's a lot.
45:11>> So people people like man they're just
45:12they're just how do you find people like
45:14that? like one, they're great people,
45:15but two, it's like we [ __ ] practice.
45:17It's like even the the money models
45:18launch, you guys saw the the the pitch
45:20that that I gave there. It's like first
45:23off, that was 1,700 slides in two hours.
45:26So, like every word that I said was
45:28scripted. There was not a single word
45:29that I said that was not on the screen.
45:32Um, number two, like when I started
45:35going through like the stuff that was
45:36inside that came when you donated more
45:37books, I not only did I practice saying
45:40the words, I had to practice saying the
45:42words coordinated. It's kind of like
45:44playing guitar and singing. It's like I
45:45had to unbox this relatively complex
45:48thing, set up these these trays, and
45:50then take these books and get the
45:52[ __ ] pages to not hit the thing and
45:53fall over, which I did have multiple
45:55times in practice and get and then I had
45:57to like duct tape these things so they
45:58would be weighted, right? Like and I
45:59would only have known that like if I
46:01just gone up there and just the first
46:02time even if I had just practiced the
46:04presentation and not actually practiced
46:06while I have to click with one hand and
46:08I got to set the thing up with another
46:10hand. Like when do I when do I move the
46:12piece on what slide? Like all that stuff
46:14I had to practice. Um it's just like I
46:16think just people wildly underestimate
46:18how much work it takes
46:19>> and that's why they just don't make as
46:20much and that's fine. And like it really
46:22does come down to like like you're just
46:25not doing as much work as you think you
46:27are. Like, and that's why people keep
46:29harping on it, but it's just like it's
46:30very hard to shout that in the mirror
46:31because like people just don't get it.
46:32It's like you're like, "Oh, hundred."
46:34And even I say this, you're not going to
46:35do it. But then when you come here and
46:38then like and whoever it was that you
46:40told the 80 times thing was like,
46:41"Haha." Like he's seen my content and he
46:44still thought it was a joke. It's like,
46:46"No, you're going to do it 80 times."
46:48And then what happens is like on the
46:4910th time you're like, "I think I start
46:51to understand it." And then by like the
46:5340th, you're like, "Oh, I kind of see
46:54the you kind of see the overarching
46:56flow. It's like kind of imprinted in
46:58your mind so you know where this really
47:00fits within the larger thing. And then
47:01like from 40 to 80 it's just all the
47:03tiny little oh if I just transition here
47:05with this little bridge it makes it
47:07really smooth. If I transition here with
47:08this little bridge or I'll make this
47:09little joke here. And so like if you've
47:11ever heard Tim give the presentation he
47:13makes the same joke at the same slide
47:14every single time and sometimes he gets
47:16the joke Asian Clark Kent. Um [laughter]
47:20um but yeah, so hopefully that that that
47:23this applies for any role, but obviously
47:25for sales,
47:29but that's the cadence. But it's not
47:30it's not like it takes I mean again it's
47:32like oh I can't waste time training my
47:33sales team. It's like can you waste time
47:35having the sales team not get trained?
47:37>> No, you just don't like
47:38>> right. It's way more expensive to have
47:40an untrained sales team work leads. It's
47:41just like it's short-term long-term.
47:43It's like, yes, the first few weeks
47:45they'll lose 30 minutes,
47:47>> but the immediate uplift, like you said,
47:49you you like barely started training and
47:50you're like, oh, wow, our clothes went
47:52up. It's like
47:52>> we've already seen like a I mean like
47:54good weeks used to be four four to 500
47:57people just 600.
47:59>> Yeah.
47:59>> So like we've seen
48:01>> and that's with this much training.
48:02>> Yeah.
48:02>> Right. [laughter]
48:04Really?
48:04>> Yeah. So it's like it becomes a culture
48:06of training like we have a culture of
48:07training. No, it is cool to see like the
48:09team buying into it and like
48:12>> doing it
48:12>> because they see it work.
48:13>> Yeah.
48:14>> That like they see it work. And I'm sure
48:16that like
48:18>> if you guys ever do something else like
48:20in the future, you're going to approach
48:21it with like, oh, I need to do way more
48:23volume than I thought I was going to
48:25have to.
48:27It's just like you just realize that
48:28there's I think Napoleon said like
48:30quantity has a quality all of its own.
48:32It's like at a certain point it's just
48:33like doing so much volume you just learn
48:35how to do things better. You just can't
48:37help it.
48:40The boredom forces innovation and
48:41improvement.
48:43>> Uh my name is Chris. I sell a data
48:45engineering boot camp to current tech
48:46professionals. We do a million a month.
48:48Would love to be at 10 million a month.
48:50What's stopping me is it's hard for me
48:52to know if it's a marketing sales or
48:54sales process issue as I try to reduce
48:57my CAC. My LTV to CAC is 3.2ish. Um I
49:01think I know how to increase my LTV. We
49:03talked a little bit last night and um I
49:06think Tim was also very very helpful in
49:08helping me realize things I can do. But
49:10I think it's
49:11>> Are you meta ads or YouTube ads?
49:13>> 70% meta, 20 YouTube 10.
49:15>> Got it.
49:16>> Tik Tok.
49:16>> What um how much creative are you
49:18putting out um per week
49:20>> at this point? Five or six. I think Tim
49:22blew my mind or someone blew my mind
49:24when they were like you got to do five
49:25or six per 10 grand. So I'm like okay
49:27got to 10x that.
49:28>> So like 500,000 a day is usually 50
49:30pieces a day.
49:30>> Yep.
49:31>> For context.
49:32>> Yep. spend 100 a day, 100,000 a day.
49:34It's
49:35>> We spend
49:35>> It's closer to It's less than that.
49:37>> Yeah. We spend 2 250 a month.
49:38>> Yeah. But I think that you should at
49:40least right now be at 25 a week. Okay.
49:43>> Minimum.
49:44>> Got it. And would you hire actors? Would
49:46you just do the winning ads?
49:48>> I would rather you just get it going.
49:50You can kind of like think about
49:51removing yourself. Are you like still
49:52the face of the business?
49:54>> I very much am still shooting on a walk.
49:56>> Yeah. I don't I don't think that's the
49:56issue right now. If you want to get to
49:5710, it's like you got tons of time
49:59before that's going to happen. So like
50:00cool.
50:00>> Yeah, it's a it's a ton more volume than
50:02you're currently doing. And it's
50:04actually the same answer that we're
50:05talking about earlier from the concept
50:06perspective just on the ads. Um the nice
50:08thing with ads though is that because
50:09the the nature of testing that can occur
50:11with ads is that if you record call it
50:1425 um here I'll just walk you through
50:16this. This will apply to everybody. So,
50:37so this is how we make ads.
50:40So, you make 50 hooks.
50:43So, it's just like, "Hey, quick
50:45question. Hey, are you been have you
50:46ever wondered about you know data
50:48engineering? Hey, look at this crazy AI
50:49thing. You know who makes this? Data
50:51engineers like what's that? Like you
50:53just you just go through 50 hooks,
50:55right? Then you have your three to five
50:57meets which is like this is actually the
50:59fastest growing industry in America
51:01right now. And believe it or not, you
51:03know Goldman Sachs said that there's a
51:0523% in Kager. And if you're like what's
51:07keer? It just means every year by 23%
51:09that means it's going to double in four
51:11years. So think about how many people
51:12you know who are data engineers, right?
51:14none. Well, there's going to be even
51:17more. And this is the starting salary.
51:19This is just according to this, you
51:20know, reputable source. And here's the
51:23craziest part. You only need 16 weeks in
51:26order to get certified to get these
51:28types of jobs. And so, if you've ever
51:29been kind of techoriented or you're good
51:30at math, like this is something that's
51:32worth considering. I just have a free
51:33class that'll walk you through step by
51:35step blah blah blah. Right? So, that's
51:37the meat. And then you have um call to
51:40actions. I don't do a ton of tests on
51:41this. Usually, typically with call to
51:43actions, once you know what the call to
51:45action that works best is, I tend to
51:46just run that as as what I say at the
51:48end of the ad, which is if it's like for
51:51are you running to a VSSL or something,
51:53video sales letter,
51:53>> opt-in VSSL set or something.
51:55>> Okay. Yeah. So, it's like you might try
51:56web class, you might try master class,
51:58you might try um you could even just try
52:00video sales letter. uh like I've got a
52:02video training, I've got a training,
52:03like basically it sounds small, but when
52:05you're running tons of traffic, those
52:06little little incremental bits matter,
52:08but once you nail what the CTA is on the
52:10backside, just use that. But
52:12fundamentally, 50 even times three is
52:14going to get you 150 ads. And so one one
52:17recording session, if you do that, it's
52:19like you only have to think of three to
52:20five actual like media angles and the
52:22rest is just hooks that you'll take from
52:24the best performing ads. And I would
52:25strongly encourage you if you're running
52:27um one look at obviously people in the
52:29marketplace that are you know kind of
52:31around you or adjacent. But the cool
52:33thing with hooks is that they work they
52:35work across everything.
52:36>> And so I've used one of the same hooks
52:39in four different businesses that are
52:40completely different B2B TOC tech and
52:42service and it still works right and so
52:45like you can reuse hooks. And so this is
52:47by the way why I don't uh pay for any
52:49subscriptions for ad free service is I
52:51I'm always just paying attention to the
52:52hooks like what hooks are coming in my
52:54in my ads and if I see an ad that's been
52:56running a lot I'm like it's probably a
52:57good hook.
52:58>> Yeah that's
52:59>> so I just write it down.
53:00>> Yeah I I was looking at the sales
53:01transcripts and trying to get hooks that
53:02way. But that's really helpful.
53:04>> Yeah. Oh no for sure. Just just watch
53:05ads.
53:06>> Cool. Thank you. Appreciate it. You
53:07>> bet. Was that helpful? Yes. Okay.
53:10>> Next one. Let's rock and roll.
53:17All right.
53:18>> Cheers.
53:18>> Hey, Alex. Uh, my name is Luke. Um, we
53:21run a firm similar to Quiet actually in
53:24Sydney where we buy majority stakes for
53:26all the businesses. Um, we currently
53:28operate three of them. We want to be
53:30operating or at least contributing to
53:32operations for about 30. Um, we've had a
53:34lot of success exiting in the past. So,
53:36we we've kind of got it dialed in, but
53:37we can't do more than a couple at a
53:39time. our constraint is at the sort of
53:42venture studio level uh is the or is
53:45talent really we don't really know what
53:47our orchart should be and who should be
53:49doing it um so I don't know if there's
53:51anyone better place to help with that
53:52than you
53:53>> so you have a holding company yeah right
53:55now and what are the three businesses
53:57that you bought
53:58>> uh one's a SAS company at the moment
54:00one's early education and the other one
54:02is a gourmet food e-commerce business
54:06the one before that was a you know music
54:09industry
54:10We're really diverse. Um, well, we we
54:12just had a lot of exits, so these three
54:14are quite small. The e-commerce one's
54:15doing three and a half million at the
54:17moment.
54:18>> And the other ones are smaller.
54:19>> Yeah. Oh, the Yeah, they just started.
54:21Yeah. So, so did this one. This one's
54:23only a year old.
54:23>> And so, the founder So, so are you are
54:26you
54:28funding them and finding a founder or
54:30are you buying businesses that are
54:32existing and exiting founders? Uh, in
54:36the current case of these current three,
54:38we've just bought them and now we're
54:39we're the only operators of them. Um, in
54:41the past it's been slightly different.
54:43>> So, it's kind of case by case.
54:44>> I I What do you want to do with your
54:46life?
54:48>> Um,
54:49>> no, cuz what I'm about to say is going
54:50to be a dramatic change from what you're
54:52doing.
54:53>> Okay. Um, I want to have [ __ ] money.
54:57>> Okay.
54:58>> Yeah. So um
55:03so there's a basically you have how much
55:06do you know about private equity?
55:08>> I've read [snorts] a couple books.
55:09>> Okay. So the the problem I can tell you
55:12what the problem with the existing model
55:14is
55:15>> that you don't have enough operating
55:17leverage and so it's actually in my
55:19opinion a foundational issue with the
55:20business model. Like I don't think it's
55:22going to work. Now to be clear I think
55:23you can make some money. I don't think
55:25it's going to accomplish the goal that
55:26you want. And so if you're trying to
55:28treat this like private equity where you
55:30hope to have exits later and then gain
55:31liquidity versus if you were like I'm
55:33just a holding company and I just want
55:35to continue to buy cash flowing
55:36businesses. I'd have a different a
55:37slightly different answer. Um but the
55:39businesses that you're buying are too
55:40small. And so if you're exiting founders
55:43then the problem that you're having is
55:44like oh my god I have to build this
55:45entire business which is why most
55:47private equity institutions start at 5
55:49million in Ibida as their basically
55:51minimum that they're check size that
55:52they're willing to write because of the
55:54problem that you are dealing with right
55:55now. And so I would encourage you to not
55:58try and reinvent the wheel. Um, and I
56:02say this coming from like with arrows in
56:04my back and lots of scars. Um, in the
56:07first 24 months of acquisition.com, I
56:08did 24 deals. I had much many many many
56:12smaller deals cuz I thought, okay, I'll
56:13just do I'll use the brand that I have.
56:15I'll attract, you know, entrepreneurs
56:16that are kind of emerging and I'll have
56:19take a minority stake and kind of help
56:21them grow whatever.
56:24Uh the issue with that is that a lot of
56:26businesses that are small are small for
56:28a reason because they don't have good
56:30entrepreneurs who are leading them. And
56:32now you're like, okay, well, either you
56:34remove the the mediocre entrepreneur and
56:36now you have just a bunch of basically
56:38nothing [laughter]
56:39that you're now like, oh, now I I just
56:41bought myself a job, right? Um and maybe
56:43you for no money down because they were
56:44willing to leave and you didn't have a
56:45lot of capital that you had to put to
56:47work. Fine. Um, but I would,
56:50in my opinion, you have basically two
56:52paths that you can pursue here from
56:53where you're currently at. I don't think
56:55buying more companies is the answer
56:57unless you raise a lot of money so that
57:00you can buy actual companies and not
57:01like someone's big bucket of risk,
57:04right? Which is what we if we if you
57:05took the companies that you bought
57:07through the the the scorecard, I'll bet
57:08you that they probably fail a lot of
57:10those checkpoints.
57:12>> Two of the three have. Yeah.
57:13>> Yeah. And so, [snorts] and for that
57:14reason, it they wouldn't be deal like
57:16they wouldn't be deal ready businesses,
57:18right? They're just basically a person
57:19with a job that has a couple people are
57:20helping them out and then that person
57:22steps away and now what, right? Um, and
57:26now you're just responsible. Um, so
57:29basically two paths. So, path one is
57:30that you raise money or get enough money
57:32to buy legit businesses. Option two um
57:36is that you decide one of these
57:38businesses is the business that you want
57:40to do um as your main thing and you use
57:43your M&A skills to basically bolt on
57:46stuff to using that as a platform rather
57:47than having all these disparate
57:49businesses. Does that make sense? So
57:50it's like the e-commerce one is the best
57:52one. It's like okay can we acquire some
57:53subbrands or some subproduct lines
57:54underneath that fold them into the brand
57:56and then flip that? That makes sense.
57:58And that allows you to not have as much
58:00capital um and you can organically grow
58:02it and then you can keep your focus. But
58:03there's a reason that most private
58:04equity firms only take on call it five
58:06to eight um investments and that's after
58:09they raise half a billion dollars um to
58:11make those deals. if they're in
58:12disparate industries, if they're a
58:15private equity firm that has a thesis
58:16based around basically uh a roll-up
58:18strategy where they're like we're only
58:20buying plumbing and that's our whole
58:21that's our whole thesis fine and that's
58:23more akin to what you were doing in
58:24terms of alpha a little bit more boring
58:26more ops heavy um but you have uh you
58:29don't have to have as much capital and
58:31the more entrepreneurial you are the
58:32more organic growth you're going to be
58:33able to drive in in the original
58:34platform business
58:36>> does that help thank you yeah makes
58:38sense thank you
58:38>> I know that's like
58:40>> okay
58:42I feel bad. [laughter]
58:46Yeah. It's hard for a reason right now
58:49because it's it's it's not it the model
58:52doesn't I I want to save you three years
58:54before you figure it out. Like it's it's
58:56this this will not continue.
58:57>> Obviously the old
58:59saying is like
59:00>> the archer doesn't matter. The strategy
59:02is wrong.
59:02>> Yeah.
59:04>> Because you're trying to build three
59:05businesses at the same time with no one.
59:07Of course you have talent discrepancy.
59:08You you need three entrepreneurs.
59:11Yeah.
59:13>> Hey there. Uh my name is Chris. Uh sell
59:16uh eyeglasses to people that can't see
59:18and specifically
59:20>> nice
59:20>> uh targeting Yeah.
59:23>> ideally. Right. So specifically trying
59:25to uh target a piece of that which is
59:28not just your primary pair which is like
59:30I can't see, I need to see, but more
59:32specific things like driving, office,
59:34that kind of stuff. A little bit more of
59:35those task specific things. Um, so this
59:39is going to sound funny here, but
59:40basically we do $0 in revenue. We'd love
59:42to be at 100 million.
59:44>> You do zero dollars in revenue.
59:45>> Yeah. So I'm going to So basically I
59:48have a business that I'm exiting 10
59:50locations,
59:51>> you know, like you don't care about that
59:52when you want to talk about coming out
59:53of that. So So what I'm here for is to
59:54understand like, well, if I'm going to
59:55start this, let me start it the best
59:56way. Totally. What's the best vehicle?
59:58Those kinds of things. So
59:59>> that that's why like yeah, we're
1:00:01>> So you're going to brick and mortar.
1:00:02>> Uh, yeah. We have 10 brick and mortar.
1:00:04>> No. Are you going for the the glasses
1:00:05business? So that's kind of the question
1:00:06is really is like do I go brick and
1:00:08mortar? So I could either, you know, use
1:00:10u doctors as affiliates etc. But the
1:00:13problem there is that they um their
1:00:17their sales teams and otherwise don't
1:00:18tend to sell these glasses well. Um so
1:00:20so am I on an eye doctor and so part of
1:00:22this is coming from knowing these common
1:00:25like five things that people just
1:00:26>> My mother and grandfather are
1:00:27opthalmologists.
1:00:28>> Oh really? Oh yeah. So you know this
1:00:30well then I guess so. Um, and and so
1:00:32there's common things that are not being
1:00:33addressed well because it's just not
1:00:35communicated well, all the things. So
1:00:37then I have to like figure out how to
1:00:38get them to sell the product that I'm
1:00:41making, which is like a whole challenge
1:00:42in itself, or do I just
1:00:44>> sort of go more of the path of like
1:00:47direct to consumer and and that kind of
1:00:49thing and whether it be brick and
1:00:50mortar, combo of online, etc.
1:00:52>> I think it depends on your strengths.
1:00:54>> Yeah. So, um, Leila has a really good
1:00:57frame for these types of decisions,
1:00:58which is what problem would you rather
1:00:59have? Because you're going to have a
1:01:02problem in either of them, right? The
1:01:03problem that you described with the
1:01:04first one is basically the affiliate
1:01:05problem, which is how do I attract them?
1:01:07How do I keep them motivated? How do I
1:01:09train them? How do I keep quality high?
1:01:11How do I make sure that they're
1:01:12representing the brand the right way?
1:01:13That is the problem with affiliates. But
1:01:15the nice thing is that if you solve that
1:01:16problem, you get paid like 50 or$undred
1:01:18million. And so, like, I feel like
1:01:19there's an appropriate price tag
1:01:21ascribed to solving it. And that's what
1:01:23gets me through honestly harder times
1:01:24when you guys because sometimes you're
1:01:25like man I just can't figure out how to
1:01:27get these conferences to work. It's like
1:01:29yeah and then as soon as you do you make
1:01:30$10 million. So yeah solve it like
1:01:32[laughter]
1:01:33like that's how it works. Um when it
1:01:35comes to uh the direct to consumer side
1:01:37if you feel like you're more skilled
1:01:38with call it you know m basically the
1:01:42business like what business you're
1:01:43really in. So if you get into the direct
1:01:44to consumer business, you're competing
1:01:46against like snow teeth whitening. And
1:01:48like if you look at the the the business
1:01:50model there, it's all media. It's all
1:01:53it's all, you know, advertising uh
1:01:55driven type business. This is with
1:01:57glasses likely very transactional. So
1:02:00it's a super direct response heavy
1:02:01business. You would probably be
1:02:03recruiting affiliates for brand
1:02:05associations. You be able to whitelist
1:02:07uh for them to be wearing your, you
1:02:08know, your your glasses and whatnot. And
1:02:10that's the business that you're in. So,
1:02:12it's going to be the problems that
1:02:13you're solving are I have to be creating
1:02:14shitloads and shitloads of uh of ads all
1:02:17the time. I have to be up to date on the
1:02:19best media buying stuff and have really
1:02:20good at CRO or conversion optimization
1:02:22and I should probably over time develop
1:02:24a strong influencer affiliate strategy
1:02:26so that I can actually build a brand
1:02:27rather than just a rorowaz arbitrage
1:02:29business. That's that path. The other
1:02:32path is the brickandmortar affiliate
1:02:34path where you still are centralized.
1:02:36You're just using doctors as your
1:02:38distribution base. If I had to pick
1:02:39which one I would rather have, I would
1:02:41rather do that one. Um, that's me
1:02:43personally. And you're also a physician,
1:02:45which I think gives you a little bit of
1:02:46leg up or at least foot in the door
1:02:47figuratively and literally. Um, and uh,
1:02:51I think that that one actually if you
1:02:52want to sell a business in the future
1:02:54would probably be more likely to be
1:02:55sellable. Uh, just because the direct
1:02:58response nature of that other business
1:03:00is so volatile that any kind of like
1:03:02wrinkle of volatility in a year prior to
1:03:04a sale, sales done, sales off the table.
1:03:07And so whereas once you develop a strong
1:03:09affiliate base of basically referral
1:03:10network from physicians though it is
1:03:12complex and challenging literally you
1:03:14just solve that one problem and you have
1:03:16the business.
1:03:16>> Yeah. Small followup to that would be
1:03:19then is so in the vein that that's the
1:03:23ultimate goal. I I know that well in
1:03:25order to get there solving that problem
1:03:27means that I probably need to
1:03:30do this XYZ here for that uh practice so
1:03:34that eventually I'll be able to do what
1:03:36it is I want.
1:03:37>> That's I guess okay to sort of take that
1:03:40approach that longer tail approach of
1:03:42it.
1:03:43>> Nothing's fast.
1:03:43>> Yeah. [laughter] Well, sure.
1:03:45>> No, I'm just being like super real.
1:03:47>> Just more from obviously experience of
1:03:48seeing it and going like, "Oh, that's a
1:03:50stupid path." versus
1:03:51>> No, I think either of those paths would
1:03:52work. I think given your experience from
1:03:54just the limited amount that I, you
1:03:56know, we've interacted right now. If
1:03:58you'd said, I'm a hardcore direct
1:04:00response marketer. I make tons of media.
1:04:02I really understand that. Well, I'm
1:04:03really good at building sites and know
1:04:04people who can, you know, CRO really
1:04:06well. Then I'd be like, okay, maybe
1:04:07that's the play. But if but you didn't
1:04:09jump at any of that. And so this one
1:04:11feels like the right path.
1:04:12>> All right, makes sense.
1:04:13>> Does that help?
1:04:13>> Alex, what's up?
1:04:14>> What it do?
1:04:16>> Nothing.
1:04:17>> All right, man.
1:04:18>> I'm Kyle. I sell outdoor lighting to
1:04:20homeowners. We design and install it.
1:04:22Um, right now we're doing 1.8 million. I
1:04:24want to get to six in this location. A
1:04:26lot about what you just talked about,
1:04:27not wanting to go too fast um into the
1:04:30next. So, I think what's currently
1:04:32stopping me is just an inefficient sales
1:04:34motion. Um, right now I have one sales
1:04:36guy. He just turned in his two weeks.
1:04:38>> So, I'm starting from scratch on the
1:04:40sales motion basically. And I want to
1:04:41find out when should I hire that next
1:04:44guy. Do I get somebody now and keep
1:04:45trying to fix it or do I fix it and then
1:04:48um
1:04:50>> Yeah. What do you do?
1:04:51>> And find a guy. Yeah.
1:04:52>> So, um to me this is like a a red alerts
1:04:55thing. Now, how much your business is
1:04:56recurring?
1:04:58>> Uh almost zero except for holiday
1:05:00lighting.
1:05:00>> Got it. Okay. So, you need to solve this
1:05:02like now.
1:05:04>> Mhm.
1:05:04>> Do you know how to sell it?
1:05:06>> Yeah. Yeah.
1:05:06>> Okay. So, you know how to you started
1:05:08selling yourself and then you got the
1:05:09sales guy.
1:05:09>> Yeah. Yeah. Yeah. I have all the numbers
1:05:10right here. If you want that, I can run
1:05:12to it, too.
1:05:12>> Um not yet. So if So at first I was
1:05:17worried cuz I thought he was like the
1:05:18only person who could you know get you
1:05:19business and I was like that would be
1:05:20>> No, I'm doing about 20% myself now.
1:05:22>> Okay. And he's doing 80.
1:05:23>> Yeah.
1:05:24>> Got it. Okay. So then what stops you
1:05:26from
1:05:26>> because I move time like I could do it's
1:05:28not cuz I don't know how to do it.
1:05:29>> Yeah. Yeah. Okay. No, that's good. So
1:05:31what what stops you from getting uh
1:05:32another guy like him because you you
1:05:34need it?
1:05:36>> Uh I just want like I think there's too
1:05:39many problems in the sales motion now.
1:05:40It's not efficient enough.
1:05:42>> Okay. So, I'm wondering, should I fix
1:05:43that myself before I try to train
1:05:44somebody else something that's not even
1:05:45working?
1:05:50>> All right, walk me through it and then
1:05:53we'll we'll go from there. Um, what I
1:05:55don't want you to do is kill your cash
1:05:57flow, right? Yeah.
1:05:58>> So, I'd rather have some inefficiency
1:06:00and still have cash flow and then we can
1:06:01fix it.
1:06:02>> But let let me hear what it is if
1:06:03there's any easy things we can pull.
1:06:05>> Yeah. Cool. So, right now, CAC is like
1:06:08$1,800 with ad spend and commission.
1:06:10They're all coming everybody's coming
1:06:11through Meta. Um, the big problem I
1:06:13think is we're closing 3.3% of leads on
1:06:16the year.
1:06:17>> Okay.
1:06:18>> And the like the front end offer is just
1:06:20we you're our featured property. We give
1:06:22you a big discount for being the
1:06:23featured home of the month.
1:06:25>> And uh
1:06:27so we added a VSSL in because there was
1:06:29some like it just wasn't fitting. Like
1:06:32people were like, "Oh, I want this free
1:06:33thing." And we just it wasn't working.
1:06:35So since the VSSL
1:06:38um which is basically like last month we
1:06:40had
1:06:41>> or last two weeks 168 leads
1:06:44>> of those 25% were unqualified just off
1:06:46of home value.
1:06:47>> Um 50 shows
1:06:49>> off the 120
1:06:51>> and only closed five of those um with
1:06:54expect like three to five more to close
1:06:56just
1:06:57>> you talked to 50 out of 120. You
1:06:58actually talked to 50 out of 120.
1:07:01>> Mhm.
1:07:02>> That's great dude. Was it in person or
1:07:04was this uh phone?
1:07:06>> Um in person.
1:07:08>> That's great, man. Okay. So, you talked
1:07:10to So, I I don't think up to that part
1:07:12I'm actually not that worried about um
1:07:14>> I thought that was that cool.
1:07:16>> No, dude. It's metal leads, man. These
1:07:18aren't Yeah, because if it was search
1:07:19then it'd be a different thing. But
1:07:20like, dude, metal leads are they're just
1:07:22it's it's not the highest quality
1:07:23platform. But you're talking to
1:07:25>> fundament you're talking to 50 out of
1:07:27168. Even if you have the unqualified 50
1:07:29out of 120. I mean, we that's not where
1:07:33I think the issue is. Okay. What's the
1:07:34cost per lead, by the way?
1:07:36>> Uh 36 bucks.
1:07:38>> Okay. $36 per lead. Okay. Got it.
1:07:41>> Cost per appointment is like 140.
1:07:43>> Okay. Got it. What's the um what's your
1:07:45what's your uh lifetime, you know, uh
1:07:48gross profit per deal?
1:07:50>> Uh $5,500.
1:07:52>> Great, man. This is awesome. Okay. Yeah,
1:07:55dude. $140 an appointment closing a 5k
1:07:58thing. We can I mean we can make that we
1:08:01can make those numbers work. Okay. So I
1:08:03mean fundamentally you should be closing
1:08:06a third of these appointments and you're
1:08:08closing what percentage right now?
1:08:10>> At 10%.
1:08:11>> Okay. Got it. So we have like we need to
1:08:13do a triple. Okay. So walk me now
1:08:16through in more detail. So the person
1:08:19comes in for the feature of the month.
1:08:20So they is this a lead ad?
1:08:23>> Uh yes.
1:08:24>> Okay. So lead ad. Okay. And then there's
1:08:27they submit, right? And then is there a
1:08:29thank you page that they get routed to?
1:08:31>> Yes.
1:08:32>> Okay.
1:08:33>> So the thank you page has a VSSL on it.
1:08:36>> Yes.
1:08:37>> Okay.
1:08:38>> VSSL on the landing page and and like a
1:08:40short one, long one.
1:08:41>> Got it. And then there's a schedule
1:08:42underneath of the VSSL. Correct.
1:08:44>> Mhm.
1:08:44>> Okay. Got it. And then after they book,
1:08:48uh, what happens?
1:08:50uh they get like automated first text
1:08:54and email stuff. Um it's pretty low book
1:08:57rate off of that off the page. Most of
1:08:59those are manual reachouts to get
1:09:01>> That's fine. That's fine. Okay. So, the
1:09:03vast majority are not self-scheduling.
1:09:05That's fine. Let's just run that flow
1:09:06real quick. So, I wanted to say the
1:09:08other one lead form, thank you page,
1:09:09VSSL. They schedule after they schedule.
1:09:12Is there another VSSL that you said
1:09:14>> the mini video afterwards? the same VSSL
1:09:16that's on the thank you page as the one
1:09:18I'm using
1:09:19>> in case you missed it or something like
1:09:20that. Okay, got it. Okay. And then um
1:09:23either way, you're reaching out to all
1:09:24these people even if they
1:09:25self-scheduled, right? I'm assuming.
1:09:26>> Yes.
1:09:27>> Okay, got it. So, of the people, so now
1:09:30let's go the other path since the
1:09:31majority of people are are many
1:09:32reachouts. You're, you know, I'm sure
1:09:34speed to lead, double dialing, all that
1:09:35stuff. Okay, so we're getting them on
1:09:37the phone. Okay, now what happens?
1:09:40So on we try to get the appointment as
1:09:42soon as possible. And then here's like
1:09:44the one fix I'm trying to fix. The only
1:09:46thing I'm trying to fix right now is we
1:09:48were not requiring the spouse to be
1:09:50there.
1:09:51>> So like that was the number one thing is
1:09:52all of them were like this all sounds
1:09:53great. I have to talk to my spouse.
1:09:55Never hear from them again.
1:09:56>> Yeah.
1:09:57>> Was like the main thing. So now in the
1:09:59VSSL I like zoom in need your spouse to
1:10:02be there.
1:10:02>> Yeah. Yeah.
1:10:03>> I'm trying to fix that. So I don't have
1:10:05data on that yet.
1:10:07>> Okay. But just walk me through process
1:10:10real quick. You reach out, you get them
1:10:11on the phone.
1:10:12>> Mhm.
1:10:13>> What do you say?
1:10:15>> Uh the So the first we're just trying to
1:10:17schedule an appointment.
1:10:18>> And then we get like we the way I word
1:10:21it is we just need to do a quick walk
1:10:22through to see if this is even a good
1:10:23fit.
1:10:24>> Okay.
1:10:26>> And then we go to like appointment
1:10:28reminders, all that. Um
1:10:30>> at the walkth through it's just like
1:10:32let's see this is either an awesome fit
1:10:34and you're going to get 20 lights for
1:10:35free and we're going to do 100 lights.
1:10:37So, it's still going to be 30k
1:10:39>> and you just get a basically a 15 to 20%
1:10:42discount.
1:10:43>> Or um
1:10:45>> the second option is well like this
1:10:46isn't a great fit for that. But good
1:10:48news is they spend 30k, you only have to
1:10:50spend
1:10:52whatever 10k, 5k, and we'll give you a
1:10:55few lights for free.
1:10:57>> Okay.
1:10:58So, before you get to the house, are
1:11:01these people watching the VSSO?
1:11:05>> Yes. How are they? So, this is why I'm
1:11:08upset. So, you get on the phone, you
1:11:09say, "We just want to check it out real
1:11:11quick." We send them reminders. When do
1:11:13they watch the VSSL?
1:11:15>> Yeah. Yeah. When the appointment is
1:11:16scheduled, like, "Hey, we're going to
1:11:17meet you tomorrow at 3." "Okay, watch
1:11:18this video before we come out." Yeah.
1:11:20Sorry.
1:11:20>> Okay. And when you show up, do you make
1:11:22sure that they watch the video?
1:11:24>> Uh, no. We say yes, but no.
1:11:28>> Right. So,
1:11:30>> let I'll just make sure that we do this.
1:11:32So, um
1:11:34>> I would also have uh one that they're
1:11:38going to watch beforehand and then uh
1:11:40I'm guessing you do some sort of moment
1:11:42where you like go out to the truck and
1:11:43like do some little calculation,
1:11:45whatever. When you go out to the truck,
1:11:47hand them an iPad and say, "Hey, you can
1:11:48watch this while I go, you know, call
1:11:51the boss and figure out what the numbers
1:11:52are."
1:11:52>> Yeah.
1:11:53>> And so then it it just literally
1:11:54pre-frames them right before you make
1:11:56the offer
1:11:57>> to close. Now what I want to do is I
1:12:01need to understand more about the
1:12:02because I think part of part of that is
1:12:03we need to have the like we need to
1:12:06confirm that um and then in the reminder
1:12:10sequence are we getting confirmation the
1:12:12spouse is going to be there
1:12:14>> current like up until now? No.
1:12:17>> Okay. So get confirmation
1:12:18>> no just say they say uh be like hey just
1:12:21to be clear is your spouse going to be
1:12:22there too? If they say no, then we say,
1:12:23"Hey, awesome. Like, let's just get it
1:12:25booked for a time that because if you
1:12:27know that your close rate on those
1:12:28people is almost nothing,
1:12:29>> then let's just let's kill the zombie up
1:12:31front." So, just add it to the reminder
1:12:33sequence. And so, you can say, "Hey,
1:12:35just confirm uh you know, two things for
1:12:37me. One, that you watch the video.
1:12:38Second, that your spouse is going to be
1:12:39there. If you confirm both, I'll see you
1:12:40tomorrow or whatever." And then morning
1:12:42of, I do the same thing.
1:12:44>> Yeah.
1:12:44>> Right. Okay. That way, they know that
1:12:46it's actually important.
1:12:47>> All right. So, that's on the that's on
1:12:48the on the nurture sequence part. Uh we
1:12:50added in the VSSL um right as right as
1:12:54you walk in and then as you do the
1:12:56calculation. Great. So that's thing two.
1:12:59Um thing three is we got to work on
1:13:01offer. All right. So one is spouse
1:13:05plus VSSL nurture.
1:13:08>> Yep. And that second VSSL is that just
1:13:10another one of the same thing but
1:13:11different words.
1:13:12>> Yep. More proof.
1:13:19All right. third one. All right. Tell me
1:13:21about the offer a little bit more
1:13:22because you kind of went over it. So,
1:13:24you're saying be one of our featured
1:13:26homes, right?
1:13:28>> Okay.
1:13:29>> So, if you're the featured house of the
1:13:31month, you get 20 lights completely for
1:13:33free and like a full media package if
1:13:34you ever want to sell. Like, you can use
1:13:35all these photos and videos.
1:13:37>> Um, and then prioritize install date.
1:13:40You'll get it sooner than everybody
1:13:41else.
1:13:42>> Okay.
1:13:43And then
1:13:46yeah, 20 lights free, but then it's
1:13:48still typically those homes need 80 to
1:13:50100 lights. Like we picked the best one
1:13:51of the month, so there's still going to
1:13:53be 25 grand. Our close rate on those is
1:13:55crazy high. They almost all say that's
1:13:57when we actually select the one person.
1:13:59Um, but the problem is obviously like
1:14:01everybody besides the one per month,
1:14:03which for them we say like the way we're
1:14:06>> dude do have you you've gone through
1:14:08money models, right?
1:14:09>> Mhm.
1:14:10>> You need to run this as a giveaway. Mhm.
1:14:13>> So you're you're you're you're not
1:14:15selling the second place prize.
1:14:17>> Mhm.
1:14:17>> You need to sell the second place prize.
1:14:19That's what's missing.
1:14:21>> Yeah.
1:14:22>> So you say if everybody says they want
1:14:24to get the the first place, then you
1:14:25say, "Hey,
1:14:27>> you got second place."
1:14:30The asterisk is you can give more than
1:14:32one second place prize away.
1:14:33>> Mhm.
1:14:34>> That's how you do it.
1:14:36>> Yeah. Okay.
1:14:37>> I want to make sure you get it because
1:14:38it's super important. Actually, like I
1:14:40messed with this idea, but I haven't
1:14:41done it. But it's basically like you're
1:14:42not the featured property, but you are
1:14:43the highlighted home.
1:14:45>> Yeah,
1:14:46>> I could use that.
1:14:47>> Yeah.
1:14:48>> Sweet.
1:14:48>> Just make it second place. And the best
1:14:50thing is the highlighted home gets all
1:14:52the stuff that the featured home does
1:14:54>> um at 20% discount.
1:14:56>> Mhm.
1:14:57>> Which is basically what they get anyway
1:14:59because their house is so big.
1:15:02>> Sweet. [laughter]
1:15:05>> Think that? Think you can sell that?
1:15:07>> Yeah. Yeah.
1:15:08>> That was it. That was what you were
1:15:09missing.
1:15:10>> Cool. So, bring another guy in right
1:15:12now.
1:15:12>> Yeah. I think we just need to fix those
1:15:14two things in the process. But I think
1:15:15the offer was off, dude.
1:15:17>> You You sold them on this big thing and
1:15:18then you were like,
1:15:19>> "Nah."
1:15:20[laughter]
1:15:20>> Yeah. That's how it feels every time.
1:15:22>> Yeah. You just You're not going to be
1:15:23that person. It's like, "Hey, so um full
1:15:26disclosure, like uh featured home we did
1:15:29have selected, but your house is great
1:15:31and would be our highlighted home."
1:15:33>> Yeah. Yeah. And then do you do you frame
1:15:36that in the VSSL at all or only talk
1:15:38about the featured home?
1:15:39>> So the way that I prefer to do giveaways
1:15:42is that you have your first and second
1:15:44place prize
1:15:46>> um public and the second place prize is
1:15:48just a discount applied to the first
1:15:50place thing. And so when everyone opts
1:15:52into the first place thing, they all
1:15:54say, "I want this big thing." And so
1:15:56it's a very seamless transition to say,
1:15:58"Oh, you didn't win the thing." Like if
1:16:00I said, "Hey, I'm going to work with
1:16:01you." Like let's say hypothetically I
1:16:03was going to do and you want to show the
1:16:05price of it too. That's what's
1:16:06important. So let's say that it's like
1:16:08you're going to work with Alex for a
1:16:09year. It's a million dollars. I'm just
1:16:10making this up. All right. You work with
1:16:11Alex for a year. It's a million dollars.
1:16:12You're going to get 12 calls uh a month
1:16:14and he's going to talk about your
1:16:15business like he's the board of
1:16:16directors. Okay.
1:16:17>> Uh second place prize uh gets um gets
1:16:21the same thing um from Alex, the
1:16:23million-dollar value, but you get it for
1:16:25500 grand.
1:16:28And so when we call people up, we say,
1:16:29"Hey, I've got good news. I got bad
1:16:31news. The bad news is you didn't win
1:16:33first place, so you're not getting the
1:16:34million dollar free. The good news is
1:16:36you get that thing you wanted for half
1:16:37off. That's how it works.
1:16:40>> Mhm.
1:16:41>> So, it's the same prize. You just apply
1:16:43some discount to the thing. So, one
1:16:44person gets it free.
1:16:46>> Everyone else gets a discount on the
1:16:48main thing.
1:16:49>> Yeah.
1:16:51>> Six inches, dude. You're six inches
1:16:52away. Yeah. Keep going.
1:16:53>> Yeah. Yeah. Yeah. I love it. on the
1:16:54like. So what happens with a lot of
1:16:56people that end up not booking or not
1:16:58buying is they see the featured houses
1:17:00of the month in the VSSL and they're
1:17:01like my house is nowhere near like this.
1:17:04>> So I don't win, I'm out.
1:17:06>> How do you frame it to that person
1:17:07before the appointment to get them to
1:17:09still get second place?
1:17:10>> Well, you want to say I state the fact
1:17:13and tell the truth. I'd say we have we
1:17:15have we have a first place and second
1:17:16place prize.
1:17:17>> Third prize is a set of steak knives.
1:17:18I'm just kidding. Um, and um, I'm gonna
1:17:21show you some of our first place prize
1:17:22winners and I'm gonna show you some of
1:17:24our second place prize winners because I
1:17:25want to be I want to be up front with
1:17:26you guys.
1:17:26>> Yeah, I want to be upfront with you
1:17:28guys. We deal with houses in a whole
1:17:29spectrum. And of course, we always
1:17:31everybody wants to be, you know, cover
1:17:32of Forbes magazine. But the thing is is
1:17:34like you can still like this is
1:17:36something you can use for your real
1:17:37estate when you sell the house. Like if
1:17:38you just get these pictures and this
1:17:39lighting that alone will add more to the
1:17:41home value than the price was. Lighting
1:17:43is one of the cheapest, highest return
1:17:44things that you can do. So this is not
1:17:46even a we're not even you're not even
1:17:47buying anything here, right? Like you're
1:17:49just getting home value at a discount.
1:17:51>> Yeah. Yeah. Yeah. Sweet.
1:17:53>> Dig it.
1:17:54>> Yeah. A lot.
1:17:55>> And I would also say the good news is
1:17:56that if you're actually not one of these
1:17:57feature houses for that and to be clear,
1:17:59if you're one of the featured houses,
1:18:00love you. That's going to be we're going
1:18:01to have an awesome time. But by
1:18:03percentage, you get a higher percentage
1:18:05value lift with lower value homes.
1:18:10>> So you actually get a better deal even
1:18:12though you had to pay for it. Does that
1:18:14make sense?
1:18:15>> Yeah. Yeah. Yeah. Yeah. Makes a lot of
1:18:16sense.
1:18:16>> So that would be my pitch.
1:18:19Sweet.
1:18:21>> Awesome.
1:18:22>> Feeling good. Rock and roll.
1:18:23>> Yeah. Yeah. Yeah. I love it. Love it.
1:18:24>> All right, dude. Well, let me know how
1:18:25it goes. We'll
1:18:27>> do.
1:18:27>> If you like this video and you're a
1:18:28business owner who wants to break
1:18:29through your current revenue ceiling, I
1:18:31distilled every lesson from scaling 10
1:18:32businesses past 10 million and three
1:18:34businesses past 100 million into a
1:18:36completely free scaling road map that
1:18:38I've used to go from 0 to 1, 0 to 10,
1:18:40and 0 to 100 plus. And so, you can click
1:18:42here and you can check it out. Again,
1:18:43absolutely free. And since you're a
1:18:45business owner, appreciate you. And uh
1:18:46enjoy.

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