"Why Did My Closing Rate Crash After I Raised My Price?" — Transcript

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1. 0:00Christian, what's up, man?
2. 0:01>> Hey.
3. 0:02>> I feel like I see you every week now.
4. 0:03What's up?
5. 0:04>> Uh I got I got to make sure I'm active.
6. 0:06Got to make sure I'm active, man. How
7. 0:07you doing?
8. 0:07>> Good. What's going on?
9. 0:08>> God bless, man. Well,
10. 0:10my name is Christian, also known as
11. 0:12Retainer Papi. Uh I help TikTok shop
12. 0:15affiliates close high-ticket brand
13. 0:16deals. And we're actually at 1.5 million
14. 0:21so far. So, it kind of went a little
15. 0:23down.
16. 0:24We're on track where we want to go to 10
17. 0:26million a year.
18. 0:26>> Mhm.
19. 0:27>> The constraint used to be brand deals.
20. 0:30>> Right.
21. 0:30>> Fixed that. All good. Current constraint
22. 0:33is finding qualified affiliates with the
23. 0:37cash to spend to now join the higher
24. 0:40ticket offer.
25. 0:41Used to be 4K for a month.
26. 0:44We changed that to being
27. 0:4720K for 3 months and then the tail.
28. 0:50At this new price, that the closing
29. 0:52ratio went from 96% down to
30. 0:5620-30%. So,
31. 0:57>> Okay.
32. 0:58>> huge thing.
33. 1:00The plan was to go to 30K for the 3
34. 1:02months and then have the tail.
35. 1:03>> Mhm.
36. 1:04>> At the rate right now, I like wouldn't
37. 1:06be too confident like 20K I'm damn, it's
38. 1:09not closing.
39. 1:09>> Okay.
40. 1:10>> 30K I'm like like you know. So, the it's
41. 1:14finding affiliates with the money to
42. 1:16spend.
43. 1:17>> Yeah.
44. 1:17>> Uh I've done the paid ads, organic, and
45. 1:20I'm working on organic right now.
46. 1:22Personal brand, so I'm charging higher
47. 1:23rates and I have way more testimonials
48. 1:26and and proof that it works. Uh however,
49. 1:30I'm not hitting it. Like I'll hop on
50. 1:33these calls and everything and I'm I do
51. 1:34all the closing.
52. 1:35>> Yeah.
53. 1:36>> And it's still not hitting as before. My
54. 1:39margins went from 80% very nice down to
55. 1:4337.5%.
56. 1:45So, now I'm like
57. 1:46>> How did the margins go down when you
58. 1:49like where did the cost come from?
59. 1:52>> Yeah, so it went into me funneling a lot
60. 1:54into Well, now I hired more people. So,
61. 1:56like that was one thing. I hired like a
62. 1:57brand acquirer. I have more teams. I
63. 1:59have more six-figure employees, support
64. 2:01reps, all that.
65. 2:02>> Yeah.
66. 2:02>> Um
67. 2:03We're gripping on Claude and AI.
68. 2:05>> Yeah.
69. 2:05>> the phone.
70. 2:06>> So, why don't we do this, which is that
71. 2:08um
72. 2:10if
73. 2:11I get you you feel, I know, you're
74. 2:13always positive, but like you feel a
75. 2:14little bit down. So, um I'm going to bet
76. 2:17like why don't we basically in order to
77. 2:20make an ethical change in the offer,
78. 2:21right? You can lower the front end price
79. 2:23and then just basically add a point or
80. 2:24two on the back.
81. 2:29That way you don't have to feel like
82. 2:30you're right. And so, that way when
83. 2:32someone comes in, you can say, "Hey,
84. 2:34it's 10 grand and a little higher on the
85. 2:36back."
86. 2:37So, you can get you can That should
87. 2:39increase your sales velocity. I doubt
88. 2:41that that like going from 20 to 10. I'm
89. 2:42not normally a a price guy
90. 2:44of of lowering it, but I'd rather get
91. 2:46you back into kind of like feeling good
92. 2:48again.
93. 2:49Um
94. 2:49and then the
95. 2:51the percentage on the back is where you
96. 2:53can basically maneuver it. So, if
97. 2:54someone's like, "Hey, I paid 20." It's
98. 2:56like, "You can give me more of all your
99. 2:57deals." And they're like, "Ah, you know
100. 2:59what? I'm I'm I'm fine." Right? Because
101. 3:00you have you have an issue where like
102. 3:01you're dealing with
103. 3:03you're taking people who are
104. 3:04fundamentally broke and you're showing
105. 3:07them a way to make a lot of money. And
106. 3:09the way that that works traditionally is
107. 3:11that you take a percentage of that
108. 3:12money, but you're also charging
109. 3:14to do it, right? Um basically to de-risk
110. 3:17yourself if they don't do the work or
111. 3:18whatever. Um and so, yeah, I think we
112. 3:21can just do this.
113. 3:23>> Okay. Okay. So, currently it's 20 and
114. 3:26then I have 10 on the back. I know we
115. 3:28were going to do tiers. That's what I'm
116. 3:29going to brand acquirer on. Cuz because
117. 3:31this machine's not running up full
118. 3:32percent, I can't even guarantee like I
119. 3:34hope hey, all right, you pay me more and
120. 3:36I can give you a higher level of of
121. 3:37brands. So, I'm just doing 10K on the
122. 3:39back and then front is 20. Would you now
123. 3:42do 15 15? So, 15 15
124. 3:45>> Just to give yourself like again, this
125. 3:47gives you room to expe- because when you
126. 3:48have two levers, it allows you to do
127. 3:50experimentation on the front end and
128. 3:51have more unique deals.
129. 3:54>> Okay, so we're like I should not even
130. 3:56like consider going to 30 or
131. 3:58>> Well, you're not closing 20 and so I'm
132. 3:59I'm concerned about that. And so either
133. 4:01we have to get better avatars to your
134. 4:03point, right?
135. 4:05The thing is is the best avatars have
136. 4:06agents.
137. 4:08Right?
138. 4:09>> Yeah.
139. 4:09>> Right? And so like you are you're you're
140. 4:11trying to get in this in between hybrid
141. 4:12world of like not an agent but an agent
142. 4:14kind of thing.
143. 4:15Um
144. 4:17and so there's going to be a cap on that
145. 4:18because the guys who truly can get those
146. 4:20million-dollar deals etc. have somebody
147. 4:22that's representing them where they've
148. 4:23already done deals, right? Um and so
149. 4:26you're you're you're trying to get these
150. 4:27like emerging stars, right? That's kind
151. 4:29of like what you're what you're
152. 4:30capturing. Um and so yeah, I think we
153. 4:32just play with the percentage. I'd
154. 4:33rather get your sales velocity up so
155. 4:34that you stop so you don't feel weird.
156. 4:37>> Okay, okay. And then as far as like the
157. 4:40the avatars go,
158. 4:42um just wanted to mention this cuz I
159. 4:44I know I get sucked in but I want to
160. 4:46mention this.
161. 4:47Uh so, you know, in info you have like
162. 4:50your little pond and like you talk to
163. 4:51this person she's like, "Oh my god, he's
164. 4:52the best. Great, great, great, great."
165. 4:54I scooped up a lot of this pond and I
166. 4:56have a few more at Liars, but the pond
167. 4:58is like that's the pond. Now I'm going
168. 5:00to find like a new I got to find a new
169. 5:01I'm like a new avatar I'm supposing
170. 5:04supposing. Should I keep
171. 5:07making my content for like moms and this
172. 5:10and that and the third of my first
173. 5:11avatar or should I now
174. 5:12>> I don't think you should I don't think
175. 5:14you should change avatars. Like you
176. 5:15haven't like saturated the market.
177. 5:17>> Oh no, no, it's like 45 clients. It's
178. 5:19not a lot.
179. 5:19>> No, like you haven't like no, I don't
180. 5:21think you change your avatar.
181. 5:22>> Okay, okay.
182. 5:24>> And that's with the brands you have like
183. 5:25they all know.
184. 5:28Yeah, like your whole your whole brand
185. 5:29list suits that avatar. Like I would not
186. 5:31like changing an avatar is like probably
187. 5:32the one of the biggest changes you can
188. 5:33make in business.
189. 5:35So I wouldn't do that. Yeah, I think we
190. 5:37need tweaks. We need more sandpaper. We
191. 5:38need less chisel like less hammers.
192. 5:41>> Let's go. Let's go. Thank you so much.
193. 5:42>> You're close. It's just a pricing tweak.
194. 5:44I wouldn't I wouldn't get too bent out
195. 5:45of shape.
196. 5:47>> Let's go.
197. 5:47>> Thanks bro. If you like this video and
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209. 6:07enjoy.