Why Only 3.3% of These Leads Become Customers — Transcript

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1. 0:00Alex, what's up?
2. 0:01>> What it do?
3. 0:03>> Nothing.
4. 0:04>> All right, man.
5. 0:05>> I'm Kyle. I sell outdoor lighting to
6. 0:07homeowners. We design and install it. Um
7. 0:09right now we're doing 1.8 million. I
8. 0:10want to get to six in this location. I
9. 0:12learned about what you just talked
10. 0:13about, not wanting to go too fast um
11. 0:16into the next.
12. 0:17So, I think what's currently stopping me
13. 0:19is just an inefficient sales motion.
14. 0:21Um right now I have one sales guy. He
15. 0:23just turned in his 2 weeks. So, I'm
16. 0:25starting from scratch on the sales
17. 0:27motion basically and I want to find out
18. 0:29when should I hire the next guy? Do I
19. 0:31get somebody now and keep trying to fix
20. 0:32it or do I fix it and then um
21. 0:36>> Yeah, what do you do?
22. 0:37>> And find a guy.
23. 0:39>> So, um to me this is like a a red alert
24. 0:42thing. Now, how much of your business is
25. 0:43recurring?
26. 0:44>> Uh almost zero except for holiday
27. 0:46lighting.
28. 0:47>> Got it. Okay, so you need to solve this
29. 0:49like now.
30. 0:50>> Mhm.
31. 0:51>> Do you know how to sell it?
32. 0:52>> Yeah, yeah.
33. 0:53>> Okay, so you know how to you started
34. 0:54selling yourself and then you got the
35. 0:55sales guy.
36. 0:56>> Yeah, yeah, yeah. I have all the numbers
37. 0:57right here if you want that. I can run
38. 0:58through it, too.
39. 0:59>> Um
40. 1:00not yet. So, if So, at first I was
41. 1:03worried cuz I thought he was like the
42. 1:04only person who could, you know, get you
43. 1:06business and I was like that would be
44. 1:07>> No, no, I'm doing about 20% of sales
45. 1:08now.
46. 1:08>> Okay, and he's doing 80?
47. 1:10>> Yeah.
48. 1:11>> Got it. Okay, so then what stops you
49. 1:12from
50. 1:13>> moved town. Like I could do It's not cuz
51. 1:15I don't know how to do it.
52. 1:16>> Yeah, okay. No, that's good. So, what
53. 1:17what stops you from getting uh another
54. 1:19guy like him cuz you you need it?
55. 1:22>> Uh
56. 1:23I just want to like I I think there's
57. 1:25too many problems in the sales motion
58. 1:26now. It's not efficient enough.
59. 1:28>> Okay.
60. 1:29>> So, I'm wondering should I fix that
61. 1:30myself before I try to train somebody
62. 1:31else on something that's not even
63. 1:32working right.
64. 1:37>> All right, walk me through it and then
65. 1:40we'll we'll go from there. Um what I
66. 1:42don't want you to do is kill your cash
67. 1:43flow, right? So, I'd rather have some
68. 1:46inefficiency and still have cash flow
69. 1:47and then we can fix it, but let let me
70. 1:49hear what it is if there's any easy
71. 1:50things we can pull.
72. 1:52>> Yeah, cool. So, right now CAC is like
73. 1:54$1,800 with ad spend and commission.
74. 1:56They're all coming Everybody's coming
75. 1:57through Meta. Um the big problem I think
76. 2:00is we're closing 3.3% of leads on the
77. 2:02year.
78. 2:03>> Okay.
79. 2:04>> And the like the front-end offer
80. 2:06[clears throat] is just
81. 2:07you're our featured property, we give
82. 2:08you a big discount for being the
83. 2:10featured home of the month.
84. 2:11>> Mhm.
85. 2:12>> And uh
86. 2:14So we added a VSL in because there was
87. 2:16some like
88. 2:17it just wasn't fitting. Like people
89. 2:19like, "Oh, I want this free thing." And
90. 2:20we just that wasn't working. So since
91. 2:23the VSL
92. 2:24um which is basically like last month,
93. 2:26we had a
94. 2:28or last 2 weeks, 168 leads. Of those,
95. 2:3125% were unqualified just off of home
96. 2:33value.
97. 2:33>> Mhm.
98. 2:34>> Um 50 shows off the 120 and only closed
99. 2:38five of those. Um we expect like three
100. 2:41to five more to close just
101. 2:43>> You talked to 50 out of 120? You
102. 2:45actually talked to 50 out of 120?
103. 2:47>> Mhm.
104. 2:48>> That's great, dude. Was it in person or
105. 2:50was this uh phone?
106. 2:53>> Um in person.
107. 2:54>> That's great, man. Okay. So you talked
108. 2:56to you So I I don't think up to that
109. 2:58part, I'm actually not that worried
110. 3:00about.
111. 3:00>> I thought I thought that was bad. Cool.
112. 3:02>> No, dude. It's Meta leads, man. Uh these
113. 3:04are Yeah, cuz if it was search, then
114. 3:06it'd be a different thing. But like,
115. 3:07dude, Meta leads are they're just it's
116. 3:09it's not the highest quality platform.
117. 3:10But you're talking to fundamentally
118. 3:12you're talking to 50 out of 168 even if
119. 3:14you have the unqualified 50 out of 120.
120. 3:17I mean
121. 3:18we
122. 3:19that's not where I think the issue is.
123. 3:20Okay, what's the cost per lead, by the
124. 3:21way?
125. 3:22>> Uh 36 bucks.
126. 3:25>> Okay, $36 per lead. Okay, got it.
127. 3:27>> Uh cost per appointment is like 140.
128. 3:29>> Okay, got it. What's the um
129. 3:31what's your what's your uh
130. 3:33lifetime, you know, uh gross profit per
131. 3:35deal?
132. 3:36>> Uh $5,500.
133. 3:38>> Great, man.
134. 3:39This is awesome. Okay.
135. 3:41Yeah, dude. $140 appointment closing a
136. 3:445K thing.
137. 3:46We can I mean, we can make that We can
138. 3:47make those numbers work. Okay. So I
139. 3:50mean, fundamentally you should be
140. 3:51closing a third
141. 3:53of these appointments, and you're
142. 3:55closing what percentage right now?
143. 3:56>> Like 10%.
144. 3:58>> Okay, got it. So, we have like we need
145. 3:59to do a triple. Okay, so walk me now
146. 4:02through
147. 4:03in more detail. So, the person comes in
148. 4:06for the feature of the month. So, they
149. 4:07Is this a lead ad?
150. 4:10>> Uh yes.
151. 4:10>> Okay. So, lead ad, okay, and then
152. 4:13there's they submit, right? And then is
153. 4:15there a thank you page that they get
154. 4:16routed to?
155. 4:18>> Yes.
156. 4:18>> Okay, so
157. 4:20So, the thank you page has a VSL on it?
158. 4:23>> Yes.
159. 4:23>> Okay.
160. 4:24>> VSL on the landing page and like a short
161. 4:27one on them.
162. 4:28>> Got it. And then there's a schedule
163. 4:29underneath of the VSL, correct? Okay,
164. 4:31got it.
165. 4:32And then after they book,
166. 4:34uh what happens?
167. 4:37>> Uh they get like automated first text
168. 4:40and email stuff. Um it's pretty low book
169. 4:43rate off of that off the page. Most of
170. 4:45those are manual reach outs to get them.
171. 4:47>> Yeah. That's fine. That's fine. Okay.
172. 4:49So, the vast majority are not
173. 4:51self-scheduling. That's fine. Let's just
174. 4:52run that flow real quick. So, I wanted
175. 4:54to say the other one. Lead form, thank
176. 4:55you page VSL, they schedule. After they
177. 4:58schedule, is there another VSL that you
178. 4:59said?
179. 5:01A mini video afterwards?
180. 5:02>> VSL that's on the thank you page is the
181. 5:04one I'm using.
182. 5:05>> In case In case you missed it or
183. 5:06something like that. Okay, got it.
184. 5:08Okay, and then um either way you're
185. 5:10reaching out to all these people even if
186. 5:11they self-scheduled, right? I'm
187. 5:12assuming.
188. 5:13>> Yes.
189. 5:13>> Okay, got it. So, of the people so Now
190. 5:16let's go the other path since the
191. 5:17majority of people are are are manual
192. 5:18reach outs. You're you know, I'm sure
193. 5:20it's speed to lead, double dialing, all
194. 5:22that stuff. Okay. So, we're getting them
195. 5:24on the phone. Okay, now what happens?
196. 5:27>> So, um we try to get the appointment as
197. 5:29soon as possible, and then here's like
198. 5:30the one fix I'm trying to fix The one
199. 5:32thing I'm trying to fix right now is we
200. 5:34were not requiring the spouse to be
201. 5:36there.
202. 5:37So, I like that was the number one
203. 5:38thing. It's all of them were like, "This
204. 5:39all sounds great. I have to talk to my
205. 5:41spouse." Never hear from them again.
206. 5:43>> Yeah.
207. 5:43>> Um they're like the main thing. So, now
208. 5:45in the VSL I like zoom in. Need your
209. 5:48spouse to be there.
210. 5:49>> Yeah, yeah.
211. 5:50>> I'm trying to fix that. So we I don't
212. 5:51have data on that yet.
213. 5:53>> Okay. But just walk me through process
214. 5:56real quick. You reach out, you get them
215. 5:58on the phone.
216. 5:59What do you say?
217. 6:01>> Uh the So the first we're just trying to
218. 6:04schedule an appointment.
219. 6:05>> Mhm.
220. 6:05>> And then we get like we the way I word
221. 6:07it is we just need to do a quick walk
222. 6:08through to see if this is even a good
223. 6:10fit.
224. 6:11>> Okay.
225. 6:12>> And then we go to like appointment
226. 6:14reminders, all that. Um at the walk
227. 6:17through, it's just like let's see if
228. 6:19this is either an awesome fit and you're
229. 6:21going to get 20 lights for free and
230. 6:23we're going to do 100 lights and it's
231. 6:24still going to be 30k.
232. 6:25>> Uh-huh.
233. 6:26>> And you just get a basically a 15 to 20%
234. 6:28discount or um
235. 6:31the second option is well like this
236. 6:33isn't a great fit for that, but good
237. 6:34news is they spent 30k, you only have to
238. 6:37spend
239. 6:38whatever, 10k, 5k and we'll give you a
240. 6:41few lights for free.
241. 6:43>> Okay.
242. 6:45So
243. 6:46before you get to the house, are these
244. 6:48people watching the VSL?
245. 6:52>> Yes.
246. 6:53>> How are they what So this is why I'm I'm
247. 6:54upset. So you get on the phone, you say,
248. 6:57we just want to check it out real quick.
249. 6:58We send them reminders. When do they
250. 7:00watch the VSL on this phone?
251. 7:02>> When the appointment is scheduled like
252. 7:03hey, we're going to meet you tomorrow at
253. 7:043:00. Okay, watch this video before we
254. 7:06come out. Yeah, sorry.
255. 7:07>> Okay. And when you show up, do you make
256. 7:08sure that they watch the video?
257. 7:11>> Uh
258. 7:12no. We They yes, but no.
259. 7:15>> Right. So
260. 7:17but I'll just make sure that we do this.
261. 7:18So um
262. 7:20I would also have uh
263. 7:23one that you're they're going to watch
264. 7:25beforehand.
265. 7:26And then uh I'm guessing you do some
266. 7:28sort of moment where you like go out to
267. 7:29the truck and like do some little
268. 7:31calculation, whatever. When you go out
269. 7:33to the truck, hand them an iPad and say
270. 7:35hey, you can watch this while I go, you
271. 7:36know
272. 7:37call the boss and figure out what the
273. 7:38numbers are.
274. 7:39>> Yeah.
275. 7:39>> And so then it it just really pre-frames
276. 7:41them right before you make the offer.
277. 7:44>> Okay.
278. 7:44>> to close. Now, what I want to do is I
279. 7:47need to understand more about the cuz I
280. 7:49think part of part of that is we need to
281. 7:50have the like
282. 7:52we need to confirm that um and then in
283. 7:55the reminder sequence, are we getting
284. 7:57confirmation the spouse is going to be
285. 7:59there?
286. 8:00>> Currently like up until now, no.
287. 8:03>> Okay, so get confirmation
288. 8:05>> confirmation of it, yeah.
289. 8:05>> Just say uh they say uh it'd be like,
290. 8:07"Hey, just to be clear, is your spouse
291. 8:08going to be there, too?" If they say no,
292. 8:10then we say, "Hey, awesome. Like, let's
293. 8:12just get it booked for a time that cuz
294. 8:13if you know that your close rate on
295. 8:14those people is almost nothing,
296. 8:16>> Yeah.
297. 8:16>> then let's just let's kill the zombie up
298. 8:17front. So, just add it to the reminder
299. 8:20sequence. And so, you can say, "Hey,
300. 8:21just confirm uh you know, two things for
301. 8:24me. One, that you watched the video.
302. 8:24Second, that your spouse is going to be
303. 8:25there. If you confirm both, I'll see you
304. 8:27tomorrow." or whatever. And then morning
305. 8:29of, I do the same thing.
306. 8:30>> Yeah.
307. 8:31>> Right? Okay, that way they know that
308. 8:33it's actually important. All right, so
309. 8:34that's on the that's on the on the
310. 8:35nurture sequence part. Uh we added in
311. 8:38the VSL
312. 8:39um
313. 8:40right right as you walk in and then as
314. 8:42you do the calculation. Great.
315. 8:43>> Mhm.
316. 8:44>> So, that's thing two.
317. 8:46Um thing three is we got to work on
318. 8:47offer. All right, so
319. 8:49one is spouse
320. 8:51plus VSL nurture.
321. 8:54>> Yeah, and that second VSL, is that just
322. 8:56another one of the same thing but
323. 8:57different words?
324. 8:58>> Yeah, more proof.
325. 9:01>> [laughter]
326. 9:05>> All right. Third one. All right, tell me
327. 9:08about the offer a little bit more cuz
328. 9:09you kind of went over it. So, you're
329. 9:11saying be one of our featured homes,
330. 9:13>> Yeah.
331. 9:15>> okay.
332. 9:16>> So, if you're the featured house of the
333. 9:17month, you get 20 lights completely for
334. 9:19free and like a full media package if
335. 9:21you ever want to sell. Like, you can use
336. 9:22all these photos and videos.
337. 9:24Um and then uh prioritize install date,
338. 9:26you'll get it sooner than everybody
339. 9:27else.
340. 9:28>> Okay.
341. 9:30>> And then
342. 9:33yeah, 20 lights free but then it's still
343. 9:34typically those homes need 80 to 100
344. 9:37lights. So, if we pick the best one of
345. 9:38the month, so they're still going to be
346. 9:4025 grand. Our close rate on those is
347. 9:42crazy high. They almost all say yes when
348. 9:44we actually select the one person.
349. 9:46Um, but the problem is obviously like
350. 9:48everybody besides the one per month.
351. 9:50Which for them we say like the way it
352. 9:52works for them
353. 9:52>> Oh, dude, do it. Have you you've gone
354. 9:54through money models, right?
355. 9:56>> Mhm.
356. 9:57>> You need to run this as a giveaway.
357. 9:59>> Mhm. [clears throat]
358. 10:00>> So, you're you're you're you're not
359. 10:01selling the second place prize.
360. 10:03>> Mhm.
361. 10:04>> You need to sell the second place prize.
362. 10:05That's what's missing.
363. 10:08>> Yeah.
364. 10:08>> So, you say if everybody says they want
365. 10:10to get the the first place, then you
366. 10:12say, "Hey,
367. 10:13you got second place.
368. 10:17The asterisk is you can give more than
369. 10:18one second place prize away."
370. 10:20>> Mhm.
371. 10:21>> That's how you do it.
372. 10:23>> Yeah, okay.
373. 10:24>> All right, I want to make sure you get
374. 10:25it cuz it's it's super important.
375. 10:26>> it's like I've messed with this idea,
376. 10:27but I haven't done it, but it's
377. 10:28basically like you're not a featured
378. 10:29property, but you are the highlighted
379. 10:30home.
380. 10:31>> Yeah.
381. 10:32>> I could use that.
382. 10:33>> Yeah.
383. 10:34>> Sweet.
384. 10:35>> Just make it second place. And the best
385. 10:37thing is the highlighted home gets all
386. 10:38the stuff that the featured home does
387. 10:40um at 20% discount.
388. 10:43>> Mhm.
389. 10:44Which is basically what they get anyway
390. 10:45because their house is so big.
391. 10:49>> Sweet.
392. 10:50>> [laughter]
393. 10:51>> They can sell that? They can sell that?
394. 10:53>> Yeah, yeah, yeah.
395. 10:55>> That was it. That was what you were
396. 10:56missing.
397. 10:57>> Cool. Should I bring another guy in
398. 10:58right now?
399. 10:59>> Yeah.
400. 11:00I think we just need to fix those two
401. 11:01things in the process, but I think the
402. 11:02offer is off, dude. You you sold them on
403. 11:04this big thing and
404. 11:05>> then you were like, nah.
405. 11:06>> Hey, it works.
406. 11:07>> [laughter]
407. 11:07>> Yeah, that's how it feels every time.
408. 11:08>> Yeah, you just you're not going to be
409. 11:10that person. Now, it's like, "Hey, so,
410. 11:12um
411. 11:13full disclosure, like uh featured home,
412. 11:16we did have selected, but your house is
413. 11:17great and would be our highlighted
414. 11:18home."
415. 11:20>> Yeah.
416. 11:21Yeah, and then do you do you frame that
417. 11:23in the VSL at all or only talk about the
418. 11:24featured home?
419. 11:26>> So, the way that I prefer to do
420. 11:28giveaways is that you have your first
421. 11:30and second place prize um public and the
422. 11:34second place prize is just a discount
423. 11:36applied to the first place thing.
424. 11:38And so when everyone opts into the first
425. 11:39place thing, they all say I want this
426. 11:42big thing. And so it's a very seamless
427. 11:44transition to say, "Oh, you didn't win
428. 11:46the thing." Like if I said, "Hey, I'm
429. 11:47going to work with you." Like let's say
430. 11:48hypothetically I was going to do and you
431. 11:51want to show the price of it, too.
432. 11:52That's what's important. So let's say
433. 11:54that it's like you're going to work with
434. 11:55Alex for a year, it's a million dollars.
435. 11:56I'm just making this up. All right. You
436. 11:57work with Alex for a year, it's a
437. 11:58million dollars. You're going to get 12
438. 12:00calls a month and he's going to talk to
439. 12:01you about your business like he's the
440. 12:02board of directors. Okay.
441. 12:04Uh second place prize
442. 12:06uh gets
443. 12:07gets the same thing um from Alex, the
444. 12:10million-dollar value, but you get it for
445. 12:12500 grand.
446. 12:14And so when we call people up and say,
447. 12:16"Hey, I've got good news, I've got bad
448. 12:17news. The bad news is you didn't win
449. 12:20first place, so you're not getting the
450. 12:21million dollars free. The good news is
451. 12:22you get that thing you wanted for half
452. 12:24off."
453. 12:25That's how it works.
454. 12:26>> Mhm.
455. 12:28>> So it's the same prize, you just apply
456. 12:29some discount to the thing. So one
457. 12:31person gets it free.
458. 12:33>> Yeah.
459. 12:33>> Everyone else gets a discount on the
460. 12:34main thing.
461. 12:35>> Yeah.
462. 12:36>> You
463. 12:37>> You're 6 inches, dude. You're 6 inches
464. 12:38away.
465. 12:39>> Yeah. Yeah. Yeah, I love it. On the like
466. 12:41so what happens with a lot of people
467. 12:43that are not looking or not buying is
468. 12:45they see the featured houses of the
469. 12:47month in the VSL and they're like, "My
470. 12:48house is nowhere near like this. So I
471. 12:51don't win, I'm out."
472. 12:52How do you frame it to that person
473. 12:54before the appointment to get them to
474. 12:55still get second place?
475. 12:57>> Well, you want to say I do I state the
476. 12:59facts and tell the truth. I'd say we
477. 13:01have we have we have a first place and
478. 13:02second place prize. Third prize is a set
479. 13:04of steak knives. I'm just kidding.
480. 13:07>> [laughter]
481. 13:07>> And um I'm going to show you some of our
482. 13:08first place prize winners and I'm going
483. 13:10to show you some of our second place
484. 13:11prize winners cuz I want to be I want to
485. 13:12be up front with you guys.
486. 13:13>> Yeah. Yeah. Yeah.
487. 13:13>> I want to be up front with you guys. We
488. 13:15deal with houses in a whole spectrum and
489. 13:17of course we always want everybody wants
490. 13:18to be you know cover of Forbes magazine,
491. 13:20but the thing is it's like you can still
492. 13:22like this is something you can use for
493. 13:23your real estate when you sell the
494. 13:24house. Like if you just get these
495. 13:25pictures in the sliding, that alone will
496. 13:27add more to the home value than the
497. 13:29price was. Lighting is one of the
498. 13:30cheapest, highest return things that you
499. 13:31can do. So, this is not even a We're not
500. 13:33even You're not even buying anything
501. 13:34here, right? Like, you're just getting
502. 13:36home value at a discount.
503. 13:37>> Yeah. Yeah, yeah. Sweet.
504. 13:40>> Dig it?
505. 13:41>> Yeah, a lot.
506. 13:42>> And I would also say, the good news is
507. 13:43that if you're actually not one of these
508. 13:44feature houses, for the And let it be
509. 13:45clear, if you're one of the feature
510. 13:46houses, love you. Like, it's going to be
511. 13:47We're going to have an awesome time.
512. 13:49But, by percentage, you get a higher
513. 13:51percentage value lift with lower value
514. 13:54homes.
515. 13:55>> Mhm.
516. 13:57>> So, you actually get a better deal, even
517. 13:59though
518. 14:00you had to pay for it. Does that make
519. 14:01sense?
520. 14:01>> Yeah, yeah. Yeah, yeah, makes a lot of
521. 14:03sense.
522. 14:03>> So, that would be my pitch.
523. 14:05>> Sweet.
524. 14:08Awesome.
525. 14:08>> Feel good? Rock and roll?
526. 14:09>> Yeah. Yeah, yeah, love it. Love it.
527. 14:11>> dude. Well, let me know how it goes.
528. 14:13>> Will do.
529. 14:14>> Appreciate you, man.
530. 14:15>> Yeah, thank you.
531. 14:16>> All right.
532. 14:17If you were the best salesperson in your
533. 14:19company, then your company will be
534. 14:21always capped by you. And this is what
535. 14:24the two-day workshop is for. Now, I want
536. 14:25to be clear before I get into what it
537. 14:26is. This is for million-dollar-plus
538. 14:28businesses that are trying to scale
539. 14:30their sales team, where you are still
540. 14:32probably vast majority of the magic.
541. 14:34Either you're literally taking calls, or
542. 14:35you are a big percentage of the revenue,
543. 14:37or you have to be constantly on the
544. 14:39sales team in order to get this to work.
545. 14:41If you're in any of those settings, then
546. 14:42this is absolutely for you. And so, if
547. 14:44you are tired of your sales relying on
548. 14:46you, and want a sales system that scales
549. 14:48beyond you, then apply. That's the deal.
550. 14:50And so, if it is a fit, we look forward
551. 14:52to seeing you out here, and it's a great
552. 14:53time. We'll talk about sales stuff.
553. 14:54Like, how to have a better time. Don't
554. 14:55take my word for it. Here's what other
555. 14:56people are saying about our workshops.
556. 14:57They're
557. 14:59premo. And uh yeah, we'll see you out
558. 15:00there.