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Why You Need to Upsell (and How to Do It Right) | 1 Hour of Alex Hormozi on Offers — Transcript

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0:00We help live poker players win more
0:02money who are already winning.
0:03>> Cool.
0:04>> Uh we do about $2 million. We'll do two
0:06million this year and we'd like to be at
0:0810 million.
0:08>> Okay. [snorts]
0:09>> Um the problem is we have two front-end
0:12offers and both are converting like
0:13crazy to the back end. Uh but we have
0:15one that's 7.5K for 28 days and one that
0:18is 2.8K for 7 days. We are
0:23>> demand constrained on the the high one,
0:26the 7.5K.
0:27>> Do you upsell from the first to the
0:28second? They are not we we're not really
0:32converting because they overlap too
0:34much.
0:35>> Okay. So, is it just a downell?
0:37>> It is a it's basically a it's a downell
0:40for players who aren't playing full-time
0:42or guys who are more weekend warriors as
0:44opposed to
0:45>> what percentage is each?
0:46>> Uh we do 12 a month of the 7.5K and we
0:50do 16 to 32 a month of the 2.8K.
0:53>> It's a big range on the other one. Okay.
0:55So, what's revenue split there? said 12
0:58time 8. So call it 100 on the the high
1:02ticket side. And then the other one is
1:04>> 50 to 70 on.
1:05>> Okay. So less on the other. Okay. Keep
1:06going.
1:08>> So the question is how do we
1:11differentiate these or do we just switch
1:14to a single offer that's more of an
1:16ascension and make the one that's maybe
1:19three days or five days and less
1:21expensive and then we can upsell to the
1:2228 day? Or do we just say screw it,
1:25let's just do the 28 day and drop the
1:26thing on the front end.
1:28>> You said you're supply constrained on
1:29the 7-day thing.
1:31>> Yes, because it requires if we do if we
1:34start doing a bunch of those, we need to
1:36hire more coaches.
1:37>> Okay. And how are you not supply
1:39constrained on the other one? Is it less
1:40coaches for the more expensive thing?
1:42>> Gen, my business partner in the front
1:44row, he does uh
1:45>> is it less fewer coaches for the
1:48>> on the lower thing?
1:53So won't you very quickly be constrained
1:55on the top thing?
1:59>> Okay.
2:01>> Okay. Three times a day. Got it. But
2:05okay. So the problem though is that you
2:08need another person to sell more people
2:11into the front end thing.
2:21I think you might have an ops issue.
2:23Like I think it just I think like so
2:26right now if I said could you sell more
2:28people if you had unlimited capacity
2:30like could you could you sell more if
2:32you had unlimited capacity?
2:33>> We could sell more of the 7-day thing
2:35because they go four times a month so it
2:36requires less on our part. Mhm.
2:46I I feel like I feel like reskinning the
2:48ops on that. Um but when I have two
2:51products that are really similar,
2:54I tend to Do you want to stop doing the
2:56low ticket thing?
2:58>> Okay. I'm just curious because it's like
3:00it's the same thing.
3:02>> Yeah. Well, which one would you rather
3:04serve? The higher guys or the lower
3:05guys?
3:07probably the higher guys.
3:08>> And you sell them direct into that,
3:10right?
3:10>> Yeah. Direct from warm inbound.
3:12>> Whatever you're doing. Oh, from warm
3:13inbound.
3:14>> Yeah.
3:15>> Oh, got it. Heard. Okay.
3:20Well, if you cut off the low thing, you
3:21have no you have no real scalable demand
3:24gen right now. It's just you make
3:25content and then that just you get what
3:26you get and then you sell those people,
3:28right?
3:28>> And we're kind of capped on on the warm
3:30is growing but it's slow and we wanted
3:31to start dipping our toes into paid.
3:33>> Yeah. I mean, that's going to be the
3:34thing that's going to unlock like like
3:36as much as I want to say, "Hey, cut this
3:38one or that one." If you cut either of
3:40them right now, you'll just lose money
3:41because you don't have an ability to get
3:43customers kind of on demand. So, um, if
3:47I were to fix this, I would think, let's
3:48fix ops first, number one, like how can
3:51we reconfigure the delivery of the offer
3:53so that you can get 3 5x the um,
3:57operational capacity for you? And then
3:59all of a sudden that'll unlock it. So
4:00that then when we then go run paid ads,
4:03we can then actually bring enough people
4:05in. And then at that point we can say,
4:07you know what, now we have enough of the
4:087500s, which you might as well charge.
4:10Well, I'll just say that you have enough
4:12of the 7500s um that then you can make
4:14the call and say, you know what, we have
4:16this much capacity overall. If I just
4:18cut this, I can then triple this one.
4:20And then you just do that.
4:22>> Do you like the pricing on those two or
4:24you you were hinting at raising?
4:25Honestly, this is where I would be like,
4:27we need to like we need to do our
4:28research behind the scenes so we could
4:30because we do price analysis all the
4:31time. Um, and sometimes we get lucky.
4:33Like we had a business that we um
4:35acquired that we did a ton of pricing
4:37research and we basically said you are
4:39actually so underpriced that we will
4:41double the price and it took me nine
4:44calls to the founder to get him to like
4:46sack up. Ladies, I apologize. Um, grab
4:49his gonads. Those are unisex anyways.
4:51Uh, grab those and then make the move.
4:54And not only did we double the price,
4:57conversion rate went up because it was
4:59so cheap, people didn't believe it. And
5:00so the thing is is that sometimes we
5:01sell out of our own pocket. But you
5:03actually sell to gamblers.
5:07>> Correct. Yes.
5:08>> So you might you might actually find
5:09yourself in a situation where the more
5:10it is, the more they'll believe it,
5:12which is called a velling good. But um
5:14we would do a pricing uh kind of like
5:16deep dive on that before I would make a
5:17pricing rack for that specific avatar.
5:20But yeah, that's the TLDDR. I fix ops
5:22first, then I turn paid on, and then at
5:24that point, we'll make the split. Okay.
5:25So, you're doing 60k, 20k profit. You
5:27probably just need to have one
5:28centralized salesperson who does the
5:29ascensions. Uh, and you need to do are
5:32you trying to sell them at the end? Yes.
5:33>> Yeah. It doesn't work. You have to sell
5:34them halfway through.
5:36>> People don't People don't sign up again
5:37when they're done.
5:38>> You tried that, but it doesn't seem to
5:39help.
5:40>> It's the offer.
5:41>> So, basically, at the halfway point, you
5:44say, "Uh, you've done a lot of progress.
5:46What I want to do is a rollover upsell,
5:48which is what I just did, right? So, I
5:50took your ticket and credit towards the
5:51next thing. So, you say you paid $2,000,
5:53whatever, to get this period of time.
5:55I'm going to credit the $2,000. We can
5:56either credit it towards 12 or we can
5:58credit towards six. So, right now, your
6:00option is you can pay me another $2,000
6:02to get to get six months or another
6:03$4,000 to get 12. You just give an
6:05either or if you choose today. Yeah. And
6:08then you let them credit the whole thing
6:10that they paid towards that. That way,
6:12it's like you just got your whole first,
6:14you know, 12 weeks free. Okay.
6:16>> Because you're crediting it towards the
6:18thing. And how do I know if my offer is
6:19sign?
6:20>> Uh, the offer bought I'm less concerned
6:22about. I mean, I'm assuming if you if
6:24you follow my stuff, you have some
6:26bonuses. You have a guarantee. It's
6:27probably conditional. If you don't hit
6:28the goal, we'll keep working with you
6:29till you do, right? So, you already have
6:31the main components. I'll bet you this
6:32is a sales problem and a sales process
6:34issue. So, halfway point, you'd want to
6:37go PIFF on either side. So, paid in full
6:39on either side. Roll over credit using
6:41the upfront thing towards 6 or 12. You
6:44either solve the problem of I'm going to
6:45coach the trainers on how to sell and
6:47I'm going to incentivize them to want to
6:48sell because they're going to get a
6:49percentage of the contract and hopefully
6:51they have some teeth in them. And if
6:53you're like they're all hopeless cases,
6:54they all hate sales. They don't want to
6:55do it. Then you bring in the saleserson.
6:58And sometimes I like in the short term
7:00the highest use of your time might be
7:02you taking those calls. It's like hey
7:03I'm the owner. I want to make sure
7:04you're having a good experience. Talk to
7:06me about what's happened so far. I want
7:07to make sure that we can tweak things. I
7:08just want you to have an awesome time.
7:10Great. Well, it sounds like things are
7:11going awesome. So,
7:14let's keep the party going. And that's
7:15kind of the that's the positioning.
7:16Let's keep the party going. Cuz
7:18fundamentally, when you go through that
7:19sale, you're like, "Okay, Erica, you
7:21know, you wanted to lose, you know, 30
7:23lb. Great. When you're at 30 lbs, do you
7:26think you're done forever?" And they're
7:27going to be like, "Well, no." And it's
7:28like, "Right." So, then to me, this has
7:30already accomplished the goal, which is
7:31that you've learned that this isn't
7:32going to be a quick fix. This will be a
7:34lifestyle change. And so, if you're in
7:35this, I'm in this with you. And I want
7:37to match that support by giving you
7:38everything you've paid me so far towards
7:40you staying on. How's that sound? Great.
7:43Two options. And if they say no, then
7:44you downell to continuity on them back.
7:46Either way, you get them to say yes.
7:47>> Those are good, but it takes a long time
7:50to get the LTV. So, they stay within a
7:52year at least in our business. But I'd
7:54like to find out a way to bring the cash
7:56forward. So, it's kind of like, you
7:59know, we're getting cash, but it takes
8:01two three months for us to really get
8:02good profits and then of course after
8:04that doing really well, but how do we
8:06bring that cash up forward and present
8:08that ahead of time? Are you billing
8:10insurance or you billing private?
8:14>> Private? No, no insurance.
8:15>> Okay, got it. So, do you bill monthly or
8:18how do you bill?
8:20>> Yeah, so we build, you know, the first
8:22of the month and a lot of times we look
8:24to collect first and last month's rent
8:26and last month's rent fully, you know,
8:28refundable on a 30-day notice, but it
8:30sounds like an apartment building.
8:33>> Yeah, got it. So I would have I mean
8:36honestly all there's there's really only
8:39um two options that are like immediately
8:42available to you or I guess three. So
8:45number one is you could have some sort
8:46of setup enrollment onboarding some sort
8:49of fee like that that you could put into
8:51the upfront payment. That's thing one.
8:54Thing two is you could require first
8:55three months upfront.
8:57That's option two. Um, option three is
9:00you can add on additional service that
9:02many of them need and then you could uh
9:05contract that out. So let's say that
9:06what are the other things that someone
9:08has to buy in order to begin your
9:09service? I'm guessing there's some sort
9:10of moving cost or moving services,
9:12right?
9:14>> Yeah. There's like anor like
9:16transportation, your beauty, hair and
9:18nails, stuff like that.
9:20>> Yeah. So basically what we do is just
9:22create a bundle that many of those
9:23people immediately need to buy in
9:25addition to Have you read the Money
9:27Miles book?
9:30Yeah. Okay. I'm reading through it and I
9:31bought the course, too.
9:32>> Oh, awesome. Um, so big picture, the one
9:37of the first stories I tell there is a
9:39guy who owns a storage facility, right?
9:41And so he gave a free month of storage
9:43away. So very similar business to yours.
9:45Not saying that you get free month, but
9:46same idea. It's like, well, what else do
9:48you need to have when you have a storage
9:50unit? You need a lock.
9:51>> Oh, uh, you need boxes. Oh, you need
9:54insurance. Oh, you need maybe a bigger
9:56unit, right? And so all of these things
9:58pull cash forward and so well not the
10:00bigger unit but the other ones do. Um
10:02and so same degree it's like okay can we
10:04sell insurance on top? Can we sell the
10:06movein services? Can we sell the boxes
10:07associated with that? Um you know where
10:09I'm going with this?
10:10>> Yeah.
10:11>> So I think people will have some some
10:13sort of elasticity like people are very
10:15very sensitive to the monthly fee.
10:17>> Right.
10:18>> They are.
10:19>> Right. Less but people are less
10:21sensitive to onetime fees because it's
10:23only once.
10:24>> Correct. So, we just need to create that
10:26onetime fee for people. Um, and it'll be
10:29even more profitable obviously if it's
10:31not just a fee, but it's also tied to
10:33stuff they already have to get solved
10:35and if they do it through you that it
10:36just feels easier.
10:38>> Yeah.
10:39>> Does that help?
10:40>> Yeah. Something else I was thinking
10:41about too is like furniture. I mean, we
10:43have it fully furnished, but maybe we
10:45could give them like a buy extra
10:47furniture if they want a nice queen size
10:49or upgrade on their bed. We could offer
10:51that to them, too. That's something
10:52that, you know, just popped up. I never
10:54thought about that. Yeah, exactly. So,
10:56we just look at all the other problems
10:57that a customer has that they're going
10:59to pay somebody to solve when because
11:00you're at a transition point in
11:01someone's life. The money's coming out
11:02of their pocket and it's already the
11:03wallet's already open. And if you can,
11:05especially because this is such like a
11:06stressful time for many families.
11:08>> Um, if you can just say like, right, if
11:10you can just say,
11:12>> "We'll handle everything. Just pay us
11:14this extra fee. We'll make it easy." Uh,
11:16many people will just give you that
11:18money and then I think you would pull
11:19forward all your your cash flow to act
11:21to our customers.
11:23Awesome. Okay. Well, sounds good, Alex.
11:26>> Appreciate you, William.
11:28>> Yep.
11:29>> All right. Have a good one to
11:31>> All right.
11:33>> How did you make a product which is
11:35school better than similar products like
11:37Circle or Kajjabi which purportedly do
11:40has similar mission but they just suck
11:43compared to schools?
11:45>> I love the wording with this question.
11:47Um, [laughter]
11:49you want to take the the school job one?
11:51How did you see what others did not?
11:55>> I think the simplest way to answer it is
11:57I just care more and spent more time,
12:00>> right? But then from that comes all of
12:04these things like there's a lot of
12:05things that go into it, but it it starts
12:07with that. Like I just wanted to make
12:09the best thing and I cared about it more
12:11than anything
12:12like more than the commercial success,
12:14more than any other thing. That was the
12:18main thing I cared about.
12:20So it was the the thing I was optimizing
12:23for instead of something like revenue,
12:25instead of growth or instead of
12:28evaluation,
12:29>> profit.
12:30>> Yeah, definitely profit, [laughter]
12:33you know, because what that meant is
12:35that schools had to lose money forever
12:37basically. So how much does it mean to
12:41you, you know?
12:43>> Well, how do you care more? What
12:45observable behavior would be conducive
12:47to caring more? Like how do you show
12:49that you care? What is the doing of
12:51care?
12:52>> Jesus.
12:54I I mean I [laughter] I I would love to
12:56I'll I'll answer on I mean if you're I
12:57mean
12:57>> I mean I I just do and that's I wanted
13:03to make something really good and I knew
13:05internally the the grade I was aiming
13:07for like I the products I appreciate is
13:10like Google and Google Maps and Chrome
13:13and the MacBook Pro and the iPhone and
13:17YouTube and I wanted to make something
13:20at that level which is the highest level
13:24there is on the internet
13:26>> and I any so I when I look at school I
13:29still see flaws everywhere
13:33>> I see nothing but problems
13:36>> and I'm far from satisfied like because
13:40that is the standard and so it's just um
13:45that's what I'm trying to do that's my
13:46objective right yeah
13:48>> we're lucky that you see these problems
13:50>> yeah the person who should lead an
13:52organization should always be the person
13:53who has the highest standard. And the
13:55day that somebody has a higher standard
13:56than you, they should run the
13:57organization. And so it's a competition
13:59of who has the highest standards and
14:00then who also has the ability to to
14:02satisfy those standards. It's that
14:04combination. And so from the doingness
14:07of care, like I remember this is super
14:09early days. Sam and I were talking about
14:11school and um he was explaining the
14:15number the amount of complexity that
14:16goes into the green dot that says that
14:19someone's online to chat. Now, we
14:22naturally are like, well, yeah, they're
14:23online, but it's like, what if they're
14:27they have the tab open, but they're on a
14:29different tab? What if they have it on
14:31their phone and but they're also on
14:34their computer? How long do you wait
14:36when they switch tabs?
14:38And does them being in an active DM
14:40waiting for somebody else's response
14:42change versus if they're just posting
14:45and you're like, "Oh, wow." Levels. And
14:48so somebody who doesn't care as much
14:50would be like, "Oh, they asked it for
14:51they asked for a green dot. They want to
14:53see who's online. If the tabs open,
14:54we'll make it green." Done. But then it
14:56just won't work that well.
14:58>> And then it just becomes one of a
15:00thousand paper cuts that get you to be
15:01like, I don't know what it is. You're
15:02like, "School just works. It's just it's
15:05simple and it works." But it's like for
15:07it to actually do this thing that on the
15:09surface level seems obvious. This
15:12person's online or they're not. You
15:13start to define what does online mean?
15:15And that's where the complexity comes
15:17in. And so it's actually taking things
15:19to the hypothetical ideal and not being
15:21satisfied with just the I have the
15:23feature. So many people have tried to
15:25match school, you know, they try to
15:26create feature parity, but they create
15:28feature parity on the surface level, but
15:29not at the depth of of what school has,
15:31which is why everyone very quickly can
15:33be like, well, this is obviously not
15:34school.
15:36And that is what you would approach
15:38whatever product you're doing. It's
15:39like, sure, I have a thing on ads. It's
15:41like, but how how good is it? And that's
15:44where it's all the details. Uh, I sell
15:46trivia nights to bars and restaurants
15:48across the country. So, they'll bring us
15:49in on their slow night of the week and
15:51we will come every week and basically
15:52fill up their bar for them.
15:53>> Cool.
15:54>> Currently at 1.1 million in revenue
15:56>> like bar launch.
15:57>> Sure, if you will.
15:58>> No, man. That's what I did. That's what
16:00I did for a living for two years.
16:01>> So, currently at 1.1 million, would like
16:03to be at 10. What's stopping me right
16:05now is capacity, but I think really I
16:08just a couple hires away from from
16:10getting that.
16:11>> So, my question is really more about our
16:13upsell. Uh we do have an upsell that we
16:15present to bars right now, but it kind
16:17of sucks.
16:18>> U and that our core offers to the trivia
16:20nights themselves are LTV to CAC is
16:22about 12 to1. So I like where we are
16:24there, but our upsell I mean people turn
16:27out after like three months.
16:28>> You mean they do a couple trivia nights
16:29and then they dip or
16:31>> the the bars themselves will use it for
16:33about three months the upsell and then
16:35they'll
16:35>> What is the upsell?
16:36>> The upsell is basically a different type
16:38of trivia night. It's called music
16:40mashup. It's like a music style trivia
16:42night. So my question is
16:46>> this will be fun.
16:47>> Right now I'm trying to just improve the
16:49music mashup game to make it something
16:51better. Do I keep doing that or do I
16:52just bail on it?
16:53>> Okay. So this is this is like super
16:55applicable to a lot of people here.
16:57Okay. So
17:00let's say this is a customer journey.
17:02This will be trivia.
17:03>> All right. So
17:11where do you sell
17:13ideally
17:15>> on this on this life cycle? Where do you
17:17sell?
17:18>> Where do I sell?
17:18>> What's the best time to sell? This is
17:21our value line.
17:23>> At the bottom at the pain point, right?
17:24>> Yes. Okay. So you're delivering trivia
17:30nights, right?
17:31>> Yes. we have now provided value and
17:34we're selling here, but they're already
17:37full. So, I give the analogy of if I go
17:39to I go to y'all's restaurant, right,
17:41and I say, "Hey, I want a steak." Uh,
17:43I'm starving, right? And uh, sorry. I go
17:45to the restaurant, I say, "I'm
17:46starving." You say, "Would you like a
17:47steak?" And I say, "Sure." I eat the
17:48steak. And you guys come back over and
17:50you're like, "How was it?" I'm like, "Oh
17:51my god, it was amazing." And you're
17:52like, "Awesome. Do you want another
17:53steak?" I be like, "No, no, I'm I'm
17:55good. Like, I'm good." And they're like,
17:57"Oh, you don't like the steak?" I'm
17:58like, "No, I I like the steak. I'm but
18:00I'm good." It's like, well, then why
18:01don't you have another steak? You're
18:02like, ah, right? It gets really awkward,
18:04right? [laughter]
18:05But that's actually kind of the
18:06situation a lot of business owners are
18:07in. And so, but after I have my steak, I
18:11might have the desire to have something
18:13sweet. And so now I'm I'm full on my
18:15value vector for steak eating, but I'm
18:17empty on my value vector for dessert
18:19eating. And so then I'd be like, "Ah,
18:21you should try our apple cobbler. It's
18:22delicious." Whatever. And so what we
18:25want to figure out is sometimes the
18:27point of greatest value also on another
18:29vector
18:30becomes the point of greatest
18:32deprivation. And that's why sometimes
18:34they overlap. Often they don't. And so I
18:36think it's one of the big mistakes that
18:37people make is when they time their
18:39upsells. And so uh for I'll give you a
18:42B2B example and then I'll I'll circle
18:44back to the bar. So if I help someone
18:46get more leads, right, I have now
18:48provided value. But now that I've
18:50provided this value, they're like,
18:51"Shit, now I have to work all the
18:52leads."
18:54And so then that creates the opportunity
18:55to sell the lead nurture services or the
18:58other things that they need to go with
18:59this problem that I just created by
19:01solving their first problem. And so
19:04upsell timing is one of the big messups
19:05I think in a lot of businesses. Okay,
19:06back to the bars. So, uh, trivia nights
19:10is the the core. So, what's the what
19:12stops you from just having basically
19:14just continue to do trivia trivia nights
19:15with them?
19:17>> What do you mean? So you do a trivia
19:19night, you bring a bunch of people on
19:20Thursday, next Thursday I still want a
19:22bunch of people. Why don't I do trivia
19:23night?
19:24>> No, that that is the business model.
19:25Everything is weekly. So a bar will hire
19:27us and we will come in every week on
19:28that day at that time and bring back
19:30that crowd. So we develop regulars for
19:32them.
19:32>> Okay. And that's and that's sticky
19:34though, right?
19:35>> Yes.
19:35>> Okay. Then what's the problem with just
19:36doing more of that?
19:37>> That was my question is whether I should
19:39just focus on doing more of that.
19:40>> Yeah.
19:41>> Okay. [laughter]
19:42>> You're like, I've got this really sticky
19:43thing that we're really good at and
19:44people like it. It's like do that.
19:46>> Okay. So followup question to that would
19:48be at what point, so let's say I just
19:50the next however many years I just keep
19:52milking the trivia nights over and over
19:54again.
19:55>> At what point do I even consider
19:56bringing on an upsell? Because right now
19:58we have no upsell.
19:59>> I don't think you necessarily need one.
20:00Are you running good margins?
20:02>> Yeah, they're fine. They're 25ish%.
20:04>> Yeah. Uh tw 12%
20:06>> 25.
20:07>> Oh, 25. Okay. I was like 25 is fine.
20:08Okay. Um yeah, I think you're just in a
20:11you're in a more situation.
20:13>> Okay. like how just like how so how do
20:16you get bars right now?
20:17>> Primarily cold outbound. A lot of cold
20:19email, cold call, some inbound. About
20:2220% of new clients come via referral.
20:24>> Cool. So, and that's I can understand
20:26that because they're not trying to refer
20:27the bar down the street because it's
20:28like it's I get it. Um so, we had some
20:31of the issues with Jim Wash. They only
20:33refer somebody who's like out of state.
20:34That's kind of theirs, right? I get it.
20:35Um, so whi
20:39how many outbound actions are you taking
20:41per day to generate your sales velocity?
20:44>> Uh, I have one sales guy full-time and
20:47he'll make about a 100 sales call cold
20:49calls per day.
20:50>> Yeah. So, I mean, that guy should
20:52probably rip like 300, but Okay, just as
20:54a baseline. Um, but I think hiring like
20:57three more guys and having all those
20:58guys do 300 a day would probably get you
21:00a bunch of sales. Um, as long because
21:03the biggest thing that I would want to
21:04solve if I'm you is how do I make sure
21:07that bars that do trivia night just keep
21:08doing trivia night with me.
21:10>> Yeah.
21:10>> If that's not a problem and they are
21:12just all continually doing that, then
21:14you have solved the hardest problem in
21:16business, which is that you have revenue
21:17retention. So, we just don't need to be
21:19fancy. We just need a shitload more of
21:20it. Cool. All right. Starting my
21:23marketing business is your experience
21:25using your books to learn. Thank you.
21:26You're welcome. How can I get more
21:28experience to sell my services to big
21:29companies?
21:31everyone
21:33start for free.
21:37And you also
21:39you also typically have to earn your way
21:41into bigger customers. And so this is
21:42why it's normal for people to
21:43consistently go on market because they
21:45realize that the work it takes to do to
21:46serve bigger clients is about the same.
21:49But the thing is is that to get the
21:51trust of bigger clients, it takes more
21:53experience and more knowhow. So saying
21:55like, I have zero experience, you know,
21:57I'm going to read your books and I'm
21:58going to start taking Amazon down as a
22:00client is super unlikely. And so you're
22:03going to want to start with smaller
22:04businesses and then work your way up.
22:06And if you don't have any experience,
22:07this is why I advocate for starting for
22:10free. Like you want to get proof before
22:12you get anything else. Like it will take
22:13you so much longer to get your first 10
22:16paying customers if you try and get your
22:17first 10 customers to be paying. You
22:19want 10 free customers. leverage the
22:22testimonials, learnings, and examples
22:23from those 10 because the people who
22:25then buy from you don't know that those
22:26people were for free. Then you go get
22:29those next 10 using the first 10. This
22:31is leverage.
22:33>> This is Sean.
22:34>> Okay. 500K topline, 300k bottom line,
22:36science of abundance. We got five
22:37minutes from Ozie hotline. What is the
22:39thing that is limiting your growth? How
22:40can I help?
22:42>> Well, great to meet you. thing that's
22:43limiting my growth right now is I feel
22:46like the initial version of my offer
22:49when it goes out to market is not as
22:51sexy as it possibly could be. Okay.
22:53>> I have a spiritual coaching practice.
22:55>> Okay.
22:56>> Often times people don't really hook
22:57into that really quickly because it's
22:59like too ethereal.
23:00>> Looking to make it systematized, clear
23:02to the point to where it um
23:06>> just just to where they they understand
23:08what they're getting. they understand
23:09the value they get out of it and then
23:10spinning off a very specific offer that
23:13allows for exponential growth.
23:15>> What do they what do they get?
23:17>> So currently what they get
23:19>> not the features the outcome
23:21>> um the outcome is is a centerness. It's
23:23it's a truth centeredness that um is
23:25removing the patterns that they've had
23:27in their life. The childhood trauma you
23:29know cycles that they've consistently
23:31been in. um that's what they get like
23:33they they actually truly understand a
23:35level of awareness to where the
23:36consciousness that they have been taught
23:38into they break those cycles and they
23:40walk through the door um to understand
23:42the depth of themselves.
23:43>> So it's behavior change.
23:45>> True. Yeah.
23:45>> Okay. Got it.
23:46>> Thank you. Great. [laughter]
23:48>> Great. So you you do bad stuff, stop
23:51doing bad stuff. You want to do good
23:52stuff. Start doing more good stuff.
23:53That's fantastic. Okay. So I think uh
23:57you know [laughter]
24:00>> I think I think I I would just I think I
24:02think you probably just need to change
24:03vocabulary because even the name of the
24:04of the of the company science of
24:05abundance and then you said that we
24:07teach you have a spirit spiritualist I
24:08think is what you said
24:09>> centerness
24:10>> center yeah and centerness again it's
24:12like we have a big issue of definition
24:13of terms and so I would say I'm an
24:15objectivist overall in terms of how I
24:17see the world which is why I think
24:18people enjoy I think why I get a
24:20disproportionate amount of views and
24:21things like that on my content is
24:22because um I try to define terms and so
24:25I think that right now you might have
24:27some people that you are think about
24:29like this. You're rolling roulette in
24:31your marketing and hoping that people
24:34who have heard the word centeredness
24:36have had a positive experience with that
24:38word and as a result make that
24:40association with you. There's a very
24:42small percentage of people who have done
24:44that. The vast majority are confused and
24:45have no idea. All right. And so we want
24:48to market or in our language use the
24:50lowest common denominator language so
24:53that the maximum number of people can
24:54comprehend the message and ultimately
24:55understand it. And if they understand it
24:57and we're clear, we we increase the
24:59likelihood they they comply with our
25:00request. They do what we want them to
25:01do.
25:02>> Right.
25:02>> Okay.
25:03>> And so fundamentally right now, how are
25:05you advertising?
25:07>> Uh Meta predominantly I have a social
25:10channel. It's about 400,000 followers
25:11currently. Um and so they come in
25:13through that and
25:14>> kind of drop in.
25:16>> Okay. And what do you sell like price
25:18point?
25:19>> Uh price point ranges um any anywhere
25:22between like low-end ticket is 97. It
25:23goes all the way up to $2,000.
25:26>> Okay. What's the sales process?
25:28>> Uh currently the sales process is
25:30literally all online. So there's there's
25:31no
25:32>> checkout. Just check out.
25:33>> All check out. But you go uh like
25:36organic to webinar to checkout.
25:39>> Organic to webinar to checkout. Yeah.
25:41And there's some paid ads that run
25:42around it. And then in the in the
25:44webinar, you give them all these
25:46different options.
25:48>> Uh I give them one option. Okay.
25:50>> Follow them through. So they graduate up
25:51into the different levels.
25:52>> Oh, so they start at like a 97 and then
25:54they work their way up.
25:55>> Yeah.
25:56>> Heard. Do you have any sales?
25:58>> Yeah, we have sales. Yeah, we're doing
26:01>> No, sorry. I I used see definition
26:03terms. Do you have sales? No, this ser
26:05like dude, this is a perfect example. Do
26:07you have sales people who call the
26:08people who buy the $97 thing to sell the
26:10expensive thing?
26:11>> No, I don't.
26:12>> Okay. So, I mean, like, well, thing
26:14number one, uh, is if you just had
26:16somebody who called all the $97 people
26:18and then sold them a $3,000 thing, you
26:21would make significantly more.
26:23>> Amazing. Okay. Yeah. Okay. Love it.
26:25>> And then I would begin the call erasing
26:28almost all the language that you're
26:29using and saying, "What are the things
26:30that you're doing in your life that you
26:31don't want to you don't want to do
26:32anymore? And what are the things that
26:33you wish you were doing that you're
26:34not?"
26:35>> Okay?
26:36>> And then say like, "The point of this
26:37call is to increase the likelihood that
26:38you do the things that you want to do
26:39and stop doing the things you don't want
26:40to do." And the good news is we have a
26:42fivestep process that we've done this
26:43and we have 80% success rate.
26:44>> Correct.
26:44>> So if that sounds like a bet that you
26:45want to make, we'd love to help you out.
26:47How's that sound?
26:49>> Fair. I love it.
26:50>> Right. Because I think I'll bet you a
26:52lot of what you're doing is you're using
26:53a lot of jargon and a lot of like
26:54featuring and no one knows what that
26:56means, nor do they really care. Like
26:58they just want the tooth pulled out.
26:59They don't care what drill you use. They
27:01just want the pain to go away.
27:02>> So I would just focus on you're doing
27:04stuff you don't want to do, you're not
27:06doing stuff you do want to do, and we
27:07will help you bridge that gap.
27:09>> Fair. [clears throat] Okay. I'll give
27:10you I'll give you I'll give you one
27:12crazy thing. Um and Alex's kind of
27:15description around using language is
27:17really important because if they a
27:19confused mind stalls, right? And I I
27:21will tell you personal uh vulnerability.
27:24My therapist stopped calling herself a
27:26therapist and started calling herself a
27:28business coach for entrepreneurs. And
27:30literally her business her business took
27:31off. She went from she tripled her fees
27:34in tw 12 months just by switching what
27:37she did because people are not there's a
27:39stigma around it. The average kind of
27:41bullheaded entrepreneur is like I don't
27:42need a therapist.
27:43>> Why'd you point at me?
27:44>> N me bullheaded
27:47the average bullheaded entrepreneur say
27:49bullheaded entrepreneur. Yeah.
27:52>> So so uh I just want to reemphasize the
27:54that Alex is right on with the kind of
27:56using the right language especially if
27:58there's a behavior bent to it. Because
28:00when you have a behavior brand to it,
28:01two things happen. One, it puts some
28:03accountability on them to actually
28:04change behavior and it puts some
28:05accountability on you to deliver the
28:07thing that will help them change
28:08behavior. So you get what you promised.
28:12>> Okay, that makes sense.
28:14>> And so once you talk in those terms,
28:15then the offer will actually become one
28:16like for everybody. Clarity always like
28:19clarity beats like if no one can even
28:21comprehend the offer like the biggest
28:22thing that you can do to increase your
28:23conversion rates across funnels across
28:25ads across emails is is is just
28:28describing things as you can observe
28:30them objectively. So I think about I
28:32translate all my materials through like
28:34a court filter. So if you're in the
28:36court and you say so and so was
28:38frustrated they would say objection your
28:40honor because that's not a fact that's
28:42an opinion. What they would say is that
28:44when that person came in the door they
28:45spoke at a higher volume. They could say
28:47that her face was visibly red. They
28:49could say that she was sweating. They
28:50could say that she threw something at
28:52somebody. These are all things that are
28:53observable that no one can question.
28:55When we start talking in terms of the
28:56amorphice, it becomes really hard to
28:58understand. And so I would use all of
29:00the observable in all of my marketing
29:02and sales so that people know what
29:04they're going to expect far more
29:05accurately. It'll feel like a
29:07superpower. It converts like crazy.
29:09>> Let me ask you this question. I love
29:11that. And I get a lot more clear.
29:12>> Okay. If if if I were able if I were
29:15doing a challenge to get people to come
29:17through the door faster in like a 60-day
29:19transformational window,
29:20>> dude,
29:20>> tell me what you think of this because I
29:22framed it off of some of the things that
29:23I've been picking up for me lately.
29:25>> Yeah.
29:26>> $500 bet on yourself.
29:27>> Yep. Win your money back. First offer
29:29inside of the attraction offers inside
29:31of money models. And the course, by the
29:32way, for everybody who's watching, it
29:34comes out tomorrow for you guys. It's
29:35free. All right, relax. It's free for
29:36everybody. But the but [laughter]
29:38so when your Yeah. The win your money
29:40back offer I think would smoke for this
29:42for this uh for for for your type of
29:44business because it's all behavior
29:45change related.
29:46>> Exactly. And so what I'm doing is that I
29:48have a I have a set of things that you
29:50do every single day. You submit that
29:51into the community running it on school.
29:53Give you 50% of your money back if you
29:55actually get through 85% of it. And then
29:57five people would be voted by the
29:58community to where I'm going to give
29:59$20,000 to those five people at the end
30:02who the community basically uplifts. And
30:03then of those five people, they can be
30:05nominated to become coaches inside the
30:07community. So I build an entire
30:08flywheel. How does that work?
30:09>> Uh I I like the Yeah. No, I think I
30:12think there is a little too much.
30:14There's three things I'd ra like I if I
30:16were you, I would do I would do the
30:18following. Do the win your money back.
30:20Instead of 50%, make it 100%.
30:24The the the 100% money back is a store
30:26credit, not cash. Okay,
30:29>> that store credit then rolls into
30:30rollover upsell into a year with you.
30:36>> Okay, so $500. Great. A year with me is
30:395,000. Great. We're take the 500, roll
30:41it towards 5,000. Fantastic. Love this
30:43for us. Okay. Um and then that's that's
30:46front end to backend conversion. Now,
30:47what are the things that are required
30:48for them to quote earn their own money
30:50back or win their money back? So, thing
30:52one, I like the the habits and
30:53behaviors. That's good. That's what gets
30:54them results. The other half of the
30:56things that you want to do and win your
30:57money back is get them to promote. All
30:59right? And so that means now depends on
31:01the nature of the service and how people
31:03feel about this. So you'll know this
31:04part better than me, but I would say at
31:06the very minimum in order to get the
31:08money back or win the store credit, you
31:09have to leave me a testimonial. Okay,
31:12number one. Uh number two, uh you got to
31:14make a public post before and after. Uh
31:17number three, you got to turn in your,
31:18you know, turn in your befores and your
31:20after stats. So you can either make a
31:21public I'm giving you different
31:22variations of this. So a more watered
31:24down version of like I don't want to
31:25post it. It's fine. Then you got to turn
31:27in before and afters and I want them in
31:28these formats and I want them on these
31:31multiple sites. So I want you to do it
31:33on trust advisor. I want you to do it on
31:35Google. I want you to do it on Yelp. I
31:36want you like I want you to do it in
31:38this Reddit forum, right? Like these are
31:39the four places I want you to post this
31:41testimonial. Um and that is required in
31:43addition to the things you have to do to
31:44get the results. So the things that
31:46someone does are activation related and
31:48advertising related. Those are the earn
31:49your money back components. And if
31:50anyone's like, "Wow, that was a little
31:51bit more nuance." That's why I wrote a
31:53book about it. Um, so I would do it from
31:56that perspective. And by doing it that
31:58way, if you want to get super saiyan on
32:00it, which I would recommend, why not?
32:02Um, I always included satisfaction uh
32:05guarantee. So, it's basically a double
32:06guarantee. So, it's like not only uh can
32:08you earn your money back if you for any
32:10reason feel like you got $499 of value
32:12when I charge you 500 at any point, you
32:14know, 6 hours or 6 weeks into this
32:16thing, you can ask for your money back.
32:17Now, for me personally, I did I I almost
32:20never had anyone ask for the money back
32:21from a satisfaction perspective because
32:23the winter money back frame is so strong
32:25that like, you know, I mean, and I only
32:27pulled that out if I needed to, you
32:29know, close a deal or something like
32:30that,
32:31>> right?
32:31>> Cool.
32:32>> You like that?
32:33>> What about this? Yeah, I love that. What
32:34about this $20,000 giveaway thing? No.
32:36Too much.
32:37>> I just don't think you need to.
32:37>> You don't need to.
32:38>> Yeah, you don't need it.
32:39>> Okay.
32:39>> So, you're you're trying to combine
32:40you're basically trying to combine three
32:42different uh attraction mechanisms. And
32:44again, clarity
32:45>> like down the middle. Right down the
32:46middle. fast ball like if it's if it's a
32:48good pitch they'll swing.
32:50>> Okay,
32:50>> cool.
32:51>> Perfect. Thank you, man.
32:52>> Thank you, dude. Appreciate you. Thanks
32:53for donating the books.
32:54>> Done a bit over 1 million in revenue on
32:56Etsy. Cool. Uh started at 16 years old.
32:59Great.
33:00>> Um I have a free community 320 members.
33:03What should I offer in paid community?
33:05Um I'm doing my best to give tons of
33:07value for free, but wanting to uh make a
33:09paid one worth it. Um,
33:14so I think, you know, like this is me
33:16taking money out of my own pocket right
33:17now, but I think it would still benefit
33:18you long term. I think that it might be
33:20beneficial for you if you have a
33:22demonstrated way of providing value to
33:23just make that community a free trial.
33:27So like obvious like you know, I think
33:30that that might be the best the best
33:32next step for you. Like if you have 320
33:34members, then it's probably engaged.
33:35Just flip it to a free trial and then
33:37that way your delivery and your
33:38marketing can be basically one and the
33:40same. Uh kind of on a go forward basis.
33:42You could obviously start a second
33:44community. It just takes more work to
33:46manage two communities. And I would say
33:47the big risk is that the free community
33:50like kind of dies when you take out all
33:51the best people and put them in the paid
33:53community. Is something that we've seen.
33:54Again, this is me not serving myself
33:56here because obviously I'm incentivized
33:57to tell you to open more communities,
33:59but my reputation matters more to me. So
34:01um that's probably what that's probably
34:03what I would end up doing
34:05>> when someone starts their business and
34:07they are like excited and hitting all
34:08the major milestones but then the market
34:10changes offers dies out and they lose
34:12motivation new things coming AI and all
34:14that when your offer ran its course and
34:17you are ready for a uh you're ready for
34:19a comeback what should you focus on
34:21first
34:24>> so I'm going to differ from like the
34:26traditional kind of direct response
34:28world which is like the concept of an
34:30offer dying out like that's just because
34:32like the product sucked.
34:35>> It's like I sold everyone I could dupe
34:37into buying
34:39and now I have to dupe them again with
34:41something new.
34:43>> Kind of shitty.
34:44>> So ideally we make something that people
34:47want to buy and then if they wanted to
34:48buy it then it means they wanted the
34:50thing and so we just need to deliver the
34:52thing we originally promised,
34:54>> right?
34:56>> So what do you do? you actually make
34:58sure that you do a good job and that's
34:59much harder it's easier to say than it
35:01is to do
35:02>> right and in the followup like with the
35:04AI and all that getting into it so it's
35:07like if I I get into the two thought
35:09processes like inculcate AI to what
35:12you're already doing and see how it can
35:14save the manual uh effort or is like
35:16making your whole business AI coach
35:19cultified kind of that
35:21>> is sorry what's the question is it like
35:23do I use AI or do I
35:24>> so it's like yeah inculcating AI to an
35:26already exist existing business and all
35:27or is it like wrap it up what is already
35:29there like and then
35:30>> well I think you're describing two
35:32opportunities that would both work.
35:35>> So it's like can I apply AI to a
35:36plumbing business and make the plumbing
35:37business make more money? Yes. Could I
35:39use AI inside of a coaching business to
35:41make the coaching business make more
35:42money? Yes. Do I want my entire business
35:44to be AI if you're really good at
35:46product and have a really amazing
35:47engineering team? Maybe. Um, I mean, the
35:50thing that's going to put like AI will
35:53put more AI businesses out of business
35:55than AI will put normal businesses out
35:56of business,
36:01>> right? You're like, I'm building
36:02>> Yeah.
36:03>> sales AI, it's like, okay, well, you
36:04sure open AI can't do it in like six
36:06months,
36:07>> right? Whereas plumbing, it's like, we
36:09got a little more time.
36:16>> Hi, my name is Katya. Um, I have a
36:21designer clothing line for women. It's
36:23resort wear. So, uh, swimsuits,
36:24cover-ups, beach dresses. We sell B2B,
36:27which is wholesale, and we also do B
36:29TOC, which is ecom.
36:31>> Okay.
36:31>> Um, we do 4 and a.5 million a year. I
36:34would like to be at 100.
36:36>> What percentage uh what percent is is
36:38B2B versus B TOC?
36:39>> About 50/50 right now.
36:41>> Hm. Okay. And who's the face of the
36:43brand? Are you the face of the brand or
36:45how are you how are you doing? Do you
36:46see? Our brand doesn't have a face. I'm
36:49the designer, but I'm really shy, so I
36:51don't really put myself out there and
36:52ads and stuff like that.
36:53>> So, who's doing who's who's in the ads?
36:56>> Um, models. Yeah, we have models and
36:59customers that do
37:00>> just UGC stuff.
37:01>> Yeah.
37:02>> Okay. [snorts]
37:03>> Yeah. So, um my question is, do I keep
37:06the current line which is um more
37:09luxury, more expensive, and kind of
37:10scale it that way? I would like to be at
37:12100 in the next 10 years maybe. So, I'm
37:14not super aggressive. Yeah. I always
37:16like hear it. I'm like, "All right, how
37:18long's she going to get?" You know,
37:19that's like the next 10 minutes. Yeah.
37:21>> Or um lower the price and have a more
37:24broad avatar.
37:27>> I mean, if you have a premium brand,
37:29that's what everybody wants. And so, if
37:31you're selling, do you have good
37:31margins?
37:32>> Yeah. 20%.
37:34>> Net.
37:34>> Yeah.
37:35>> Okay. Yeah. I I don't think you should
37:36lower your price.
37:38>> Um it's a I think there's there's
37:40demand. I mean
37:43the thing is is like a lot of women are
37:46willing to pay. How much is the bathing
37:48suit
37:48>> right now? 200 up to 400.
37:51>> Okay. So yeah, it's premium.
37:52>> Yeah,
37:53>> man. How are the is is the is the main
37:55cost cost to acquire customers? Is that
37:56the main cost in the business?
37:58>> I'm sorry.
37:58>> Is the main cost of acquisition for your
38:01business?
38:02>> Um well
38:05>> because I mean if you're selling $200
38:06bikinis I'm like it's g I mean it can't
38:09cost you more. I mean, how much does it
38:10cost you for a bikini?
38:12>> Maybe 40 30 to 40 for the $400 bikini.
38:15>> Yeah. So, you're running 90% gross
38:16margins,
38:17>> right?
38:17>> Yeah. Okay. So, is the majority of the
38:19cost in marketing?
38:21>> Yeah. For the ecom. Yeah.
38:23>> Yeah. So, the the big thing that we have
38:26to solve for in the business long term,
38:28like if you want to get to 100 million,
38:29you have to build a brand. And the way
38:31to build the brand is going to be on
38:32customers coming back. So, do you have
38:34any idea how many bikinis or other
38:36pieces that people buy once they make
38:37their first purchase?
38:39Um, so we have about 30% of people that
38:42come back and um, yeah, the average
38:45spend per order is about $350.
38:48>> Yeah. So all if I were to buy the
38:50company today, I would put all my effort
38:53in taking that 30 and making it 65.
38:56>> Mhm.
38:56>> Is how do I get people to like how do I
38:58get two out of three people to buy to
38:59come back? Because there's a number of
39:01things that that happen there. So it's
39:02not just that
39:04>> those customers are worth more. is that
39:05if you go from 30 to 65, also the amount
39:08of customers that are going to be
39:09bringing other people and referring
39:10other customers, which is going to be
39:11harder to attribute, but you'll feel it
39:13in all the free sales that you'll get
39:14because the product's getting better.
39:16Fundamentally, that's what begins the
39:17brand loop.
39:18>> And so that's honestly that's where like
39:20all of my obsession would go is because
39:23that's what that's going to be the
39:23unlock. Like the reason that big like
39:26big companies like the the Gym Sharks of
39:28the world, you know, like the the big,
39:29you know, apparel brands that you know
39:30of can continue to scale is because as
39:33you get into colder and colder market,
39:36you have to have an equally strong force
39:38that is fighting to keep your business
39:40alive. And that's where the brand comes
39:42in and repurchases from the base is kind
39:44of what allows that to continue to
39:45happen. And if it costs you more to get
39:48customers, but then those customers
39:49refer other customers, it it lowers your
39:51overall blended CAC and allows you to
39:53mass like expand to a much larger
39:54degree. And so that's why it's like it
39:56sounds like a very small metric, but is
39:57it is the thing to solve for
40:00>> um within the business that you're
40:01currently in. And so I mean you are in I
40:04mean assuming you don't have supply
40:05chain issues, you're pretty much in just
40:07a direct marketing business. Obviously
40:08if you're B2B side, that'll scale up.
40:10The thing is is as you continue to
40:12reinvest in the brand and and demand
40:13continues to rise for it, you'll be able
40:15to sell into each of these B2B side even
40:17easier because you'll have more leverage
40:19because you're like, I'm going to drive
40:20foot traffic because people are going to
40:20come for my bikinis or my, you know, my
40:22my resort wear.
40:23>> Yeah.
40:24>> So, you're like, okay, well, how do I
40:26build a brand?
40:27>> Does that mean that I have to put myself
40:29out there more?
40:29>> No, you don't. No, no, no, no, no. You
40:31don't have to. No.
40:32>> Stronger brand. Yeah.
40:33>> Sorry.
40:34>> How do you make a stronger brand?
40:35>> It's going to be the people you choose
40:36to associate with. Yeah. So, it doesn't
40:38have to be you, but like if you have
40:39five, 10 faces uh that are influencers
40:42that that and here's where it gets a
40:44little bit more nuanced is you don't
40:45want just generic hot chick number six
40:47to be the person who's who's
40:48representing the brand.
40:50>> Ideally, you want people who have and
40:51you've probably seen this true
40:53followings. And the reason that people
40:55have true followings is because they
40:56have provided I mean they they truly
40:58have influence not just like she has a
41:01fat butt, you know what I mean? And then
41:02they post pictures of it. And so you
41:04want somebody who has a personality
41:05behind the body uh because they'll
41:08actually have a much more more loyal fan
41:09base, but also because it'll it'll say
41:11so much about the brands that they're
41:13choosing to associate with because the
41:15customer is going to know them, not you.
41:17>> And so by them knowing that person, they
41:20associate all the values they ascribe
41:22with that person to the brand. So, it's
41:24like if you have the options between,
41:26you know, uh a girl that's, you know,
41:28probably more higherend, more Aspen
41:30Resort, if you will, uh uh and somebody
41:33who's more, you know, Carnival Cruise,
41:35if you want the the the the luxury
41:38buyer, then you want to associate with
41:40the luxury girls.
41:41>> Yeah.
41:42>> Does that make sense? Because they all
41:43follow those girls
41:44>> for sure.
41:44>> And that way, you won't have all the
41:45complaints that are going to come in
41:46because if you go on Carnival Cruise and
41:47you put a $200 bikini, they're going to
41:49say that you should put in get put in
41:50jail, right? But if you do it at Aspen,
41:52they'll be like, "Oh my god, it's half
41:53off." Uh, and so
41:56Pick Your Price. So, this is the visual
41:58for it, by the way, which looks nice and
41:59cool. I don't know if they can zoom in
42:00at all, but that's the visual for the
42:02chapter for Pick Your Price. This is in
42:04the Lost Chapters book, by the way. Uh,
42:06which is free cuz um I like you guys.
42:10Sorry. It's free for the people showed
42:11up live. Sorry. Um, it's $29, which
42:14we'll make available for other people,
42:15but everybody who showed up live uh will
42:17get one of these bad boys. All right, so
42:18let's read it. June 20th, Austin, Texas.
42:23I could see the Texas heat bouncing off
42:25the hood of the car as we drove. The
42:27roads were empty, not a car in sight. It
42:29was like driving through a ghost town,
42:30except the town was our home. It was
42:32right in the thick of CO. As Leila and I
42:35were driving back from the pharmacy for
42:37some goods. We saw a young girl on the
42:39side of the road frantically waving a
42:40sign.
42:42Free car wash is what it had on it.
42:44Intrigued, I said, I wonder what the
42:46deal is. There's got to be something to
42:47it. Want to go check it out? So Ila
42:50obliged my whim as uh as she'd done many
42:52times in the past. She just knew how
42:54much I love going through sales
42:55processes cuz I'm a weirdo. So I turned
42:58the wheel of the car around toward the
42:59girl um and headed up the ramp uh next
43:01to her. So around the bend, we rolled
43:03our car into the main car wash. As we
43:05pulled up, a man stood out uh from his
43:07seat in the shade and we came up to a
43:09stop and rolled down the window. He
43:11pointed to a pricing chart and exhaled
43:13his spiel, which it became clear he'd
43:16already done hundreds of times already
43:18that day.
43:19The standard, this is what he said, the
43:21standard car wash is 100% free, but
43:23we're accepting donations on behalf of
43:24the staff to help the guys feed their
43:26families and get through this. We would
43:28all be super appreciative. We accept
43:30cash, credit, and Venmo. And then he
43:33shut up and said nothing.
43:35I got the hint and took out a $20 bill.
43:38Looking at the pricing board, it was
43:39more expensive than mo than the most
43:41expensive automated watch they charge
43:42for, even during normal conditions. He
43:45grabbed the 20, gave me a ticket, and
43:46waved me on. So, I'm always pro business
43:49and I always will be. I felt great about
43:50helping a group of working men. And that
43:52being said, it had a very different feel
43:54than any normal process. Normally, we
43:56buy things and don't think much past the
43:58transaction. In this instance, my
44:00purchase was funding something great,
44:01the American dream. As we went through
44:03the car wash line, I couldn't shut up
44:05about it. I was like, "How great was
44:06that? Goodwill, lots of new business,
44:08cash flow on a high margin service.
44:10Brilliant. I'm definitely figuring out a
44:12version of this for gyms." And in the
44:14middle of COVID, our gyms began using
44:16this scripting in their sales process.
44:17And it worked wonderfully. People who
44:20couldn't normally close were able to get
44:22an average ticket of about $99, which is
44:24more than the average low barrier offer
44:26for like a boot camp or something like
44:27that. It was splendid. I'll give you the
44:29details about how to do it and how you
44:31can apply this offer like uh like this
44:33to attract new customers. All right, so
44:34that's the that was the story behind
44:35this. So here's the description. You
44:38market the promotional offer as free.
44:40When the person gets to the checkout,
44:42you give them an offer to pick their own
44:43price. You'll explain the benefits of
44:46investing more equating to higher
44:48investment in their own results. If if
44:51they're after results, the more they
44:53pay, the more they'll pay attention. So,
44:55here's some examples. So, if you had a
44:57lemonade stand, you would offer a free
44:59lemonade cup. The upsell is, but you can
45:02choose to pay something to help the
45:04families of the employees. As an
45:06additional bonus, the crew offered to
45:08make a cup of hands squeeze lemonade for
45:10anyone who pays or donates over $5. And
45:13we'll give you a picture to take home
45:14with you for any donation above $25 and
45:17give you three months of shipments for
45:18anything over 99 plus.
45:21Maybe this starts to sound familiar. Car
45:24wash example. So, it was a free machine,
45:26car wash, and soap. That's the free one.
45:28The upsell is, but you can choose to pay
45:31something to help the families of the
45:32employees. As an additional bonus, the
45:34crew offered to wax anyone's cars who
45:36who donates over $30 and handbuff anyone
45:39who goes over 67 and do the entire
45:41interior of the car for anything over
45:4399. You guys catching on how this works
45:45for whatever business you have. Here's
45:46weight loss. You'd offer a free 21-day
45:48weight loss program. The upsell would be
45:50pick your price, but most people pay
45:52$99. We give this just to the coaches
45:55and their families. If you pick $99,
45:57we'll also give you an extra one-on-one
45:58call. If you pay over $1.99, we'll also
46:00provide our entire supplement handbook.
46:02If you pay $499, we'll guarantee you'll
46:04lose 10 pounds. And if you don't, we'll
46:06let you use that credit towards any
46:07service we have. That's an example of
46:09another one. So, here's another another
46:11uh example of a pick your price. So,
46:14this is for a dentist. The offer would
46:16be a free dental cleaning. The upsell,
46:18pick whatever you want to pay. Most
46:19people pay 99. Notice the way the
46:21phrasing works. Most people pay 99,
46:23which also gets them an extra XYZ or
46:26$2.99 for an extra VW. Uh, if you had a
46:29coaching offer, it'd be like, uh, the
46:31offer is free coaching and or men
46:32mentorship. The upsell, pick your price.
46:34If you pay $2.99, you will get the
46:36course that goes with it. At 997, you
46:38get six group calls on top of this. The
46:40zero price comes only with access to the
46:43group. All right. So, that's that's the
46:47that's the concept. Now, I'll give you
46:48some of the details that make this work.
46:50Okay. To further incentivize them
46:52paying, you offer bonuses for three
46:54levels of payment. So, think small,
46:55medium, large. to encourage them to pay
46:57something more than zero. Ultimately, if
46:59someone doesn't want to pay for the
47:00first thing, you've got to give them the
47:01basic level for free. That being said,
47:03you can and should still upsell them on
47:04other products and services during their
47:06time with you. This is similar to a
47:07limited free, which is a different
47:09thing. Um, except instead of either or,
47:13you have, and limited free is what I
47:15called it in an earlier version, it
47:16became the decoy offer. But I I digress.
47:20Uh, you have a sliding scale with no
47:22predetermined amounts, only rungs. All
47:24right. So, this also has no max. People
47:26can pay whatever they want. They can
47:27donate as much as they want. Now, you
47:28want to make sure that at the beginning
47:30of the sale, you explain that you do
47:31have a pick your price setup and that
47:33the staff is offering some different
47:34bonuses. The staff is offering some
47:36different bonuses at different levels.
47:38Uh, but they're not obligated to pay
47:40anything. So, it'll seem like they're
47:42paying the employees, not the business,
47:44which for some reason people feel way
47:45better about, even though most
47:46businesses pay their employees. Um, and
47:49so explaining that you're accepting
47:50donations and/or allowing people to pick
47:52their own price will avoid any
47:53awkwardness at the end. You also get the
47:56goodwill of the prospect being upfront.
47:58Now, when selling with that preframe
48:00though, you can and should hit the
48:02prospect hard with confrontational
48:04questions to ensure they'll be a good
48:05long-term candidate. This is especially
48:07if you sell like service, like heavier
48:09services. So, if you feel as though they
48:11have no intention of staying, just weed
48:13them out. All right? So, be genuine
48:14about this. This should feel a little
48:16bit more like an interview. So, the
48:17types of clients, again, this is
48:18shifting more from, you know,
48:19transactional like the car wash story to
48:21a more transa uh more relational type
48:23sale that you're going to be doing on
48:24ongoing client work. Okay. Uh, where
48:26were we? Okay. Um, this should feel like
48:29an interview. So, the types of clients
48:30you want are the ones who willingly pay
48:31and are appreciative. You want people
48:33who who think with reciprocity. So, this
48:35is the sort of mini test. This is like a
48:37little mini test for that. So, ask real
48:39questions to gauge commitment level for
48:40their own good and yours. So, examples.
48:43So, are you willing to change the way
48:44you do X? Are you willing to stop doing
48:46why? What if life gets busy? Will you
48:48stop showing up? Will you attend to all
48:50of these appointments? So, make sure the
48:52thing that you're giving away for free
48:53has low operational cost so you can
48:55still give it to people without burning
48:57out your staff. All right? So, save the
48:59higher operational cost stuff uh for the
49:01people who choose to pay. After you get
49:03to the end of the pitch, you'll outline
49:04what they get each level and then say,
49:06and this is key, we accept Visa,
49:09Mastercard, or XYZ payment. Which would
49:11you prefer to use? Then shut up.
49:15They will then take out their card and
49:16tell you the level they want. It's hard
49:18for people to say no because we
49:20obviously attract with free and we
49:22deliver free if they so choose that. But
49:24we say, hey, many people do these other
49:25things instead. And as a result, if you
49:27want, you can just get all these other
49:30benefits as well. And when someone's
49:32when it's framed that way where it's
49:33like, hey, the employees are chipping in
49:34and doing this extra work, which is how
49:35businesses work in general. For whatever
49:37reason, consumers feel way better about
49:38paying employees than a business, even
49:39though the business pays the employees,
49:40whatever. uh that framing allows many
49:43people then feel like oh I will I'll
49:46I'll do the most expensive thing we're
49:47benefiting the employees which is
49:48exactly what business does to begin with
49:50now summary points these offers can
49:53generate a lot of goodwill when done
49:54properly people feel good when they buy
49:56them because this is it's not a demand
49:58it's a choice all right so it pulls on
50:00people's generosity or reciprocity
50:02people feel 100% in control of their own
50:04destiny and you can play up the fact
50:05that you're helping folks for freight
50:07sets up a relation based on goodwill and
50:09sets the stage for future upsells this
50:10is really key. It sets the stage for
50:13future upsells. Again, a money model is
50:15not just one of these, it's a series of
50:16offers. All right? And on top of that,
50:18the conversion rate is super high. Um,
50:20so although the average ticket is
50:22typically lower with this type of play,
50:24um, it works well in low trust
50:26environments because it has so much
50:27goodwill loaded into it. So, this is one
50:29of the easier kind of free upsells or
50:31free attraction offers that exist. All
50:33right, so pro tip. What did I refer my
50:34pro tip here? Paid version, pick your
50:36price. Okay. Oh, actually, I remember
50:37this. Yeah, so I saw an art gallery use
50:39this as well. Um, and this is how they
50:41did it. So, every every piece of art had
50:45a price range. And so, they said people
50:47could choose how much they wanted to
50:48support the artist. So, for example,
50:51they said this painting is between$149
50:53and $2.99. So, I asked the owner how it
50:55worked and she told me that most people
50:57pay more than the halfway point because
50:59they don't want to seem cheap or
51:00unsupportive. So, this this version is
51:03kind of like half Goodwill, half
51:04capitalism. Um, so I like I kind of like
51:06it. It's just kind of a permutation of
51:07it. But give it a try if that type of
51:09thing fits your business. And if you're
51:10like, why did you not include that in
51:12the money models bug? So the some of the
51:14plays that are in here are like there's
51:16just it they they're more niche, I
51:19think, in some instances. So it didn't
51:20match 100% of businesses. I had a ve I
51:23have a very high standard for I would
51:24say the $100 million cannon. Um, and so
51:26it has to be able to apply to like every
51:28single business. Has to be easy to
51:29understand. It has to be the most
51:30powerful one. This one has a little bit
51:32less cash up front than the other
51:33attraction offers that I put in here.
51:35Um, but the id say the main benefit of
51:38this particular offer mechanism is that
51:40it's really easy to sell. It's like very
51:41easy to sell. So if you're somebody who
51:43really struggles with sales, especially
51:44in a low trust environment, sometimes
51:46even in an online environment where you
51:47like don't have as big of a brand, it's
51:49a great like what I would consider like
51:50intro offer. Um, and so that's uh that's
51:54just one of 24 chapters inside of uh
51:56inside of the lost chapter. So hopefully
51:58you guys dug that. And that was uh
52:00whenever you're in a commoditized
52:01business um you're not obviously the
52:03goal is not to be in one but it's like
52:05you either have to win on risk as in you
52:07are less risky which is what a brand
52:09premium does is that like people believe
52:11that you're they're more likely to get
52:12the good result because of your
52:14reputation. That's the inverse of that.
52:15You know you can put covenants and
52:16guarantees if you don't have a brand but
52:18long term it's reputation. The next one
52:20is speed. Like if they if you can I mean
52:23if you could get the horses healed
52:24faster than somebody else that's
52:26valuable right? or if you could see the
52:28horse faster than somebody else, that's
52:29valuable. Um, and then, uh, ease, right?
52:33Like, how do I make it less friction for
52:34you so that you can just drop the keys
52:36off, you know, functionally, um, and not
52:39have to worry about anything else.
52:42>> Yeah. But that's like, and we just like
52:44whenever we're trying to work with a
52:45business that's like relatively
52:46commoditized, happens a lot in home
52:48services, um, is we just try and figure
52:50out which of those three vectors of
52:52value we can we feel like that that
52:54business can win on. Sometimes it's
52:56speed, sometimes it's risk, like they
52:58never have defects. Like it depends on
52:59the business and we just we that's part
53:01of the discovery. I know yours was speed
53:02because you're faster than your
53:03competitors. So it's like that makes
53:04sense.
53:04>> Any kind of home service, the big issue
53:06is commoditization, right? Like there's
53:09huge demand for it. There's not a lot of
53:10supply and so people are going to make
53:11money without really a lot of scale. Um
53:14and so then you have bad players who
53:15underpric
53:16>> because and then basically it's a race
53:18to the bottom which sucks, right? And so
53:20with on time on budget, the big concerns
53:23that every every consumer or every
53:25homeowner has is is this going to be is
53:27this going to be on time? Is it going to
53:28be on budget? Right? Um and so with an
53:30on bud on time on budget guarantee, what
53:33we do is we say
53:35so you already raised your prices, but I
53:38would say like you could probably get
53:39away with raising them even more. But
53:41this is my process of doing this is like
53:42we're going to bump price by 20%.
53:48And then this gives you all the leverage
53:50you need in the conversation. So if I'm
53:52talking to a homeowner, I say, "Listen,"
53:54they're like, "Well, I've got, you know,
53:55two other quotes for less." It's like,
53:57"Oh, yeah. Um, did they guarantee time
53:59and budget?" No one will. Uh, it's like,
54:02"Oh, yeah. Well, then I can do it for a
54:03dollar as long as I don't have to
54:05guarantee time and budget." And then
54:07they're like, "Oh." And you're like,
54:09"Right. It's complete make believe with
54:11me. When you pay this, you know that it
54:13will be done by this time and it will be
54:14done under this number. period. And if
54:16it's not, I'll give you my profit, which
54:18I run 20% margins. I'll give you 20%
54:20back,
54:23>> right? And we just bump it by 20% and
54:25you capture it on everyone else and
54:26you're probably not going to do it. Now,
54:27what makes this now here's what makes it
54:28a little even sexier is that this
54:30guarantee is contingent on one very
54:32important thing, which is that they
54:33don't change their mind,
54:35>> which of course they're going to [ __ ]
54:36change their mind.
54:36>> Obviously, of course. And so, and so, so
54:40this allows you to win every bid.
54:42>> Mhm.
54:42>> But then you say, "Hey, to be clear, I
54:44can guarantee this as long as you're
54:45good that this is what we're doing."
54:47Yeah.
54:47>> But then they're like, "Actually, I kind
54:48of want the other turf or I want that
54:50edge. Can you cover that area over
54:51there?" Like, absolutely can.
54:53>> I can't stick with this anymore, but
54:55like I'm still going to try and hit that
54:56goal, but I just want to make sure that
54:57you're clear. Like, I can't like you
54:59just change the terms.
54:59>> Yeah.
55:00>> And everyone's like, "Yeah, I want the
55:01extra." Great. So that's the
55:05kind of like no change contingency which
55:07protects you
55:10>> and then in the in the rare circumstance
55:12where you some they don't change their
55:14mind and you somehow go over
55:16>> you just give back the price raise that
55:18we just did
55:19>> right and so you keep what you were
55:21going to make anyways and so this covers
55:22you on both sides. How does that feel?
55:25>> I love that. And I think our client love
55:27that.
55:27>> Lovely. And you don't need to be limited
55:29by this. You can you can make it
55:31>> more than that.
55:32>> Yeah. Well, okay. The second thing is
55:36that so maintenance plan. So, kind of
55:37like I was saying with Ly earlier on the
55:39horse side, it works the same way. I I
55:41try and do this almost every service
55:42business I can is okay um they're like
55:47turf is going to get damaged. It'll get
55:48you know the edges will fray. You you
55:50know this [ __ ] better than I do. You
55:52need something right that's going to
55:54happen. So, I I like having as as little
55:57as like the lowest price possible if I
56:00want them to say yes because what I want
56:02them to do is just buy a sales consult,
56:05>> right? So, I'm going to come back a year
56:06from now and we'll cover repairs up to
56:09twice this number. Um, and that's what
56:11most people do. You want to just do that
56:13twice.
56:14>> So, let's say it's 200 bucks a year.
56:16We'll cover up to $500 a year in
56:18repairs.
56:19>> We make up the prices on repairs anyway,
56:20so whatever, right? So, it's like, I'll
56:22give you twice the number uh on the
56:24repair cost. Anything under 500 bucks,
56:26we'll just handle um and we'll come out
56:28and just keep it. It's like it'll double
56:29like the I'm sure you'll have some
56:31stats, but it's like, you know, if
56:33you're buying the turf, it'll it'll
56:34double the duration of it. And if you
56:35plan on selling the house in the future,
56:37the last thing you want to do is have to
56:38redo the turf for somebody else to
56:40enjoy.
56:41>> That's what I would say. That's how I
56:42pitch it. It's like, well, [ __ ] It's
56:43like, yeah. So, once you do it, what
56:44people don't realize is if you're going
56:46to sell the house, then it's going to
56:46look like [ __ ] because it's just wear
56:48and tear. we do this, it'll add to your
56:50home value rather than being something
56:52you have to replace later.
56:53>> Gotcha.
56:53>> And you get dinged for it. Um, so the
56:56maintenance plan
56:58and so here's the here's my favorite way
57:00of doing it,
57:02which Ly if it makes sense for you, you
57:04can try and adopt this, but I like the
57:05way you outlined yours. But the way I
57:07would do it is like um
57:10you could have it be $500 a year, right?
57:14Mhm.
57:15>> And then you say, "Or
57:18you can just leave me a fivestar review
57:23and I'll throw it in
57:26>> at the same point."
57:28>> So it's like it's 500 bucks a year. It's
57:29what most people do. Um and we're
57:31running a deal right now where you leave
57:32us a fivestar. Um we'll comp it
57:35>> for the first year.
57:36>> Yeah.
57:43Now, does does the um does the same
57:46person who does the work do the kind of
57:48like the the walk through, you know,
57:49like the it's all done, let's wrap up?
57:52>> No. The person who makes the sale Yeah.
57:55>> is so currently how it's set up uh is
57:58the saleserson is the project manager
58:01shows face like I'm still here with you
58:04with through this process and does a ton
58:05of walk through with the client.
58:07>> Okay. So that's good. They're not the
58:09laborers, per se, right? So here's
58:12here's what's magic.
58:13>> So when you have that when that guy has
58:15that conversation, says, "Hey, um you
58:17know, we have a maintenance plan for
58:18$500 a year." All the stuff I just said.
58:20Um and or you know,
58:24and right now ownership's running a
58:26special where if you just leave us a
58:28review, um it'll be free. And if you do
58:32leave the review, the guys get a little
58:33spiff and you know, it mean a lot to
58:35them. If if he says it about the guys
58:37and he's not the owner,
58:39>> it crushes because it's like as long as
58:41if you can Javier and Jose did an
58:43awesome job like they get a little
58:45spiff. It means a lot to them and their
58:46families and like you'll get 500 bucks
58:48for me.
58:48>> Okay.
58:49>> And everybody [clears throat] does it.
58:50>> Gotcha.
58:52>> When I think about career pathing um I
58:54think about two columns that are kind of
58:55in parallel. So you've got title perks.
59:00Sorry that's a K perks and then money,
59:04right? And so let's say that we've got
59:06hm
59:07>> I just watched your video on this on the
59:08plane here.
59:08>> Oh, did you? Okay. Well, then you'll be
59:10bored by it. But u So does it matter
59:12what role you have? Let's say you've got
59:14a um you know an an editor, right? So uh
59:18you've got an editor and so when they
59:20come in they're going to come in as a
59:22junior editor and then over here let's
59:26say that they're getting $10 an hour.
59:28I'm just making this up, right? $10 an
59:30hour and then they've got $11 an hour,
59:33$12 an hour. And so we're going to start
59:36at junior.
59:38That's the first career path thing.
59:40You're a junior editor and you're making
59:42$10 a year. Um after you hitting your
59:46first 30 days, we're going to say,
59:47"Awesome. Uh we're going to move you
59:49from $10 to $11." So that's going to be
59:53move number one after day 30 or after
59:56you do XYZ. Now that you're at $11, uh,
59:59for another, you know, you passing my
1:00:01next milestone, you're going to get
1:00:04you're going to be promoted from junior
1:00:05editor to editor.
1:00:08And
1:00:10editors don't have to do one element
1:00:12that junior editors have to do, which is
1:00:13like they don't have to clean the lenses
1:00:14on the cameras. I'm making it up. Um
1:00:17from here we say okay uh [clears throat]
1:00:21editors then uh our third move is going
1:00:24to be like now you've done over a 100red
1:00:27videos and it's now 6 months in you can
1:00:29now be an editor you get another pay
1:00:31bump from there we say okay you've done
1:00:34that for another six months and now you
1:00:36can become a senior editor
1:00:39and if you do that throughout multiple
1:00:40steps in the career so it's like that's
1:00:43uh like in the sales role right you have
1:00:44setters and you so it's like junior
1:00:47setter, setter, senior setter and then
1:00:48you become a junior closer, closer,
1:00:50senior closer and then you have uh so
1:00:52like you have all these paths. So if you
1:00:54have six like that with the pay bumps,
1:00:56you have 12 career progressions. And so
1:00:59this keeps people invested much longer.
1:01:01And so we've seen this done really
1:01:03really well in med spas and also in like
1:01:06nail salons. Like it sounds random, but
1:01:07the same idea. Um, and so you might be
1:01:10a, you know, call it a junior level one
1:01:13esthetician and then a level one
1:01:15esthetician and then a senior level one
1:01:17esthetician and then a uh junior level
1:01:21two esthetician, level two esthetician,
1:01:22senior level two and then junior level
1:01:24three, level three, senior level three.
1:01:26And so it's like gives huge
1:01:28progressions. And then with each one of
1:01:29those they had to get they had to pass
1:01:31these many certifications that were
1:01:33purely made in house that allowed them
1:01:35to do more expensive and complex
1:01:36procedures but that allowed them to
1:01:38increase their hourly billables. And so
1:01:40by doing that they just always felt like
1:01:41they were learning and they always felt
1:01:43like they were making progress. And so
1:01:45we saw this we almost bought this we put
1:01:47an offer on this nail salon chain that I
1:01:48really liked. See I do nails I can do it
1:01:50all. Uh, and um, but what was genius
1:01:53about this lady's model was that she
1:01:56took like the average stick in the
1:01:57industry was like 6 months for a nail
1:01:59esthetician and she was keeping for like
1:02:00four years. And she was taking girls who
1:02:03had no high school diploma and they're
1:02:04making 70,000 a year which is huge for
1:02:07the markets that she was in. And so like
1:02:10that's what that's why they just stayed
1:02:12with her forever. And she would just
1:02:14like literally she would teach them how
1:02:15to do like gels and then she taught them
1:02:16how to do fancy nails and then like the
1:02:18little bed. I don't I she had a whole
1:02:20system around it. But that same process
1:02:22applies to sales people, editors,
1:02:23anything that's a repeated role. You
1:02:25don't have to have a thousand of these.
1:02:27If you get 10 good ones in good markets,
1:02:30what will be like the step that's
1:02:31between where you're at now? So, let's
1:02:34assume that you take these steps that we
1:02:35went through and you scale up to a
1:02:37number that you're like, "This is really
1:02:38good for this facility. I don't want to
1:02:40like build out more or anything like
1:02:41that."
1:02:43Once we get to that point, the next step
1:02:44is actually doing what we call scale
1:02:46zero, which is how do we get you to do
1:02:49zero in the business and then have the
1:02:51business still continue to operate at
1:02:53the same or better than it was with you
1:02:55operating it. Once that happens, then we
1:02:58have the duplicable model because what
1:03:00happens most of the time is business
1:03:03owner starts to make money with and
1:03:05they're working the business and then
1:03:06think okay this is working therefore I
1:03:09will take this cash that I'm making open
1:03:10my next location. Then they take all
1:03:12their time and go to the next location.
1:03:14The profit here, let's say the let's say
1:03:15the revenue drops by 20%. And the
1:03:18margins 25%. All of a sudden they went
1:03:20from, you know, making a lot of money to
1:03:22making almost nothing. But now they
1:03:23doubled their overhead because they've
1:03:25got this one and this one's not growing
1:03:26as fast as the other one did because
1:03:27they put years and years of sweat effort
1:03:29over here and this is brand new. It's
1:03:31new staff. You don't have the same word
1:03:32of mouth and all of a sudden now you're
1:03:34working twice as much and making less
1:03:35money. That's what happens most times
1:03:37and that's what sucks. So from a belief
1:03:39perspective, that's like the big mistake
1:03:40to avoid is like
1:03:43expansion should happen when you're
1:03:44making more money than you know what to
1:03:45do with and you have more time on your
1:03:47hands than you know what to do with.
1:03:48That's when you expand. Not when you're
1:03:50like, I'm not making enough from this
1:03:51facility. And this totally applies to
1:03:53you. I'm not making enough from this
1:03:54facility, so I'm going to open another
1:03:56one. That is like that is how so many
1:03:59people think about it. And I only say I
1:04:01know that because I did it.
1:04:03>> Alex, this is your last question.
1:04:05>> Oh, I'm fine. Okay. Hey, I get to be
1:04:07last. Uh my my name is
1:04:10>> It's got to be a good one.
1:04:11>> I I think it's a good one. It's my
1:04:12number one constraint for sure. Without
1:04:14a doubt. Um I have really good
1:04:16retention. It's like 86%. It's
1:04:18restaurant business. I'm sorry.
1:04:19>> Restaurant management software for
1:04:21restaurants. And I'm launching a POS
1:04:22system with payments and I'm launching
1:04:24accounting like as we speak. So I don't
1:04:26have that just the inventory and all the
1:04:29backend stuff that they don't have to
1:04:30do. The systems that everybody hates to
1:04:32do. But we solve the data problem for
1:04:34restaurants and we make our clients
1:04:36super successful.
1:04:37>> Cool.
1:04:37>> I can get leads. I get a 30% close with
1:04:40about a 1% show up rate.
1:04:42>> Wait, what?
1:04:43>> I can't get people I can't get busy
1:04:45restaurant tours where people are
1:04:46constantly selling them. They'll they'll
1:04:48be on their couch. They'll opt in uh and
1:04:51they will not they'll even pay. I have a
1:04:53thing where they can pay for a lesson on
1:04:55board. They don't show up for that.
1:04:57Sometimes I'll have somebody no show for
1:04:58six or seven calls before they finally
1:05:01show up just through our diligence. But
1:05:02my show where you getting customers from
1:05:04>> terrible. So I have an SLO um which is
1:05:07probably the top way now. Used to be
1:05:08that we do speeches at a food show.
1:05:10>> Being a selfquidating
1:05:11>> selfquidating offer. I sell on the front
1:05:13end. I sell these restaurant training
1:05:15manuals.
1:05:16>> Okay. But what media channel?
1:05:17>> Uh Meta.
1:05:19>> Okay. So you're running ads
1:05:20>> to a low ticket offer. Y
1:05:22>> which is these the manual thing, right?
1:05:24Which is what price point?
1:05:25>> $99. Okay. So, you run ads through $99
1:05:28thing and then there's a thing.
1:05:29>> There's there you can upsell a
1:05:30hospitality video and then I have a a
1:05:33training that's actually a mastery thing
1:05:35that actually is an onboarding for my
1:05:36software
1:05:37>> um if they do it. So, getting them just
1:05:39to show up for that training is really
1:05:41difficult. I've hired a person that's
1:05:42their only job is to get them to show up
1:05:44>> and then um getting them to show up for
1:05:46demos like they just no show constantly
1:05:50even with Yeah. Jacob went over some of
1:05:52the stuff too. I just wanted to know
1:05:54your take.
1:05:55>> I mean, all the tactical stuff you went
1:05:57over is the that's like the BB's, but
1:05:58I'm thinking like something doesn't make
1:06:01sense. Like nothing has a 1% char rate.
1:06:03Like 1% is so small. I'm so
1:06:05>> have like 100 people sign up and then
1:06:06one will show up for a call. I mean, I
1:06:08might get more of the hundred to show up
1:06:10over time.
1:06:10>> Let's I think we're talking about
1:06:12different numbers. So, you get how Okay,
1:06:14let's say you get a,000 clicks to your
1:06:15page.
1:06:16>> Okay.
1:06:17>> How many people convert on the page for
1:06:18the $99 thing?
1:06:19>> Like it's like 10 on the conversion. So
1:06:2110% will opt in and then another
1:06:2620% will buy it of that of the 10%
1:06:29because I'll have them put in their
1:06:30information of the 10%.
1:06:32>> So we got 100 that opt in.
1:06:33>> Yep.
1:06:34>> And then we get 20% of these
1:06:36>> to buy.
1:06:37>> Yeah.
1:06:37>> Right. So you get 20 sales. Okay.
1:06:39>> And then we have a page for them to say,
1:06:41"Hey, to get the most out of these,
1:06:44schedule a call."
1:06:45>> Hold on. Click on sale. Okay. Got it.
1:06:47>> Yeah.
1:06:48>> Okay. And then of the 20% Yeah.
1:06:50>> Yeah. And then we'll have a thing that
1:06:52hey sign up to get the most of those. So
1:06:54So we're we're we're like one one to
1:06:57one.
1:06:57>> So there's auler here.
1:06:58>> There's a scheduleuler. Yeah. After the
1:07:00after.
1:07:00>> Okay. And of the 20 what percent
1:07:01schedule?
1:07:04>> Maybe 25%
1:07:06>> of these. Okay. So you got five.
1:07:09>> Yeah.
1:07:09>> Who schedule. Okay. So this is schedule.
1:07:13Got it. Okay. And then of the five who
1:07:16schedule
1:07:17>> like 0.05 05 will will actually show.
1:07:20>> You're saying 1% will show of that.
1:07:22>> Yeah.
1:07:22>> Okay. So, if I have something like that,
1:07:25it usually means that there's something
1:07:26disjointed.
1:07:27>> Yeah.
1:07:27>> So, either either the people who are
1:07:29buying aren't restaurant tours.
1:07:32>> No.
1:07:33>> No. So, that actually solved my problem.
1:07:34I used to do lead magnets for
1:07:36restaurants where I do like, hey, 10
1:07:37ways to save food cost. And I have a
1:07:39hundred 100 people in a restaurant. 20
1:07:41of them would want to learn about saving
1:07:42food cost, but only one's the buyer.
1:07:44>> Okay. Okay, the [snorts] people that buy
1:07:45training systems for all their staff are
1:07:47the the decision maker.
1:07:49>> Okay, I'm just telling you what problems
1:07:51would potentially result in this. So,
1:07:52one of them is that the targeting is
1:07:54off. Okay,
1:07:54>> that would be one of them that could be
1:07:56>> the other could be that what you're
1:07:58offering does not match this thing.
1:08:00>> Yeah,
1:08:01>> if you have So, like the self the thing
1:08:02is the self schedule at 25%.
1:08:05That like
1:08:08>> Okay. And like something's something's
1:08:11wrong here.
1:08:11>> Yeah. Like it's not like everything you
1:08:14started with of like restaurant tours,
1:08:15they're busy. It's like dude, I don't
1:08:16buy that for a second.
1:08:19>> Every entrepreneur on the [ __ ]
1:08:20planet's busy.
1:08:21>> They're not more busy. They're busier
1:08:23than everybody. Like everybody's busy.
1:08:24Like don't believe that. It's horshit.
1:08:27>> Something's wrong here.
1:08:28>> So one thing is my product. Restaurants
1:08:30don't believe they have to take
1:08:31inventory and do a lot of the things
1:08:32that my product does. They don't believe
1:08:34that they have a lot of them. That's why
1:08:35>> Well, they just bought a system for it.
1:08:36So that seems weird.
1:08:38>> Well, they're but Well, my my the
1:08:40training thing is just a lead. That's
1:08:41not my
1:08:41>> Okay. So, it doesn't match the offer.
1:08:43>> Yeah. Yeah. Yeah.
1:08:45>> So, here's what I'd recommend. More of
1:08:48that thing you just bought.
1:08:50>> Hear me out.
1:08:50>> Yeah.
1:08:51>> Match what you say they're going to get
1:08:53on the scheduled thing to what they
1:08:55bought. And then then on the sales call,
1:08:58you can introduce the new thing.
1:09:00>> So, my um so my software has the digital
1:09:05training where they can do it on their
1:09:06apps and all that too. They just bought
1:09:07like books of training. Sure.
1:09:09>> Yeah. So,
1:09:10>> so you hear what I'm saying though?
1:09:12>> Yeah.
1:09:12>> So, whatever they bought here, this
1:09:14thing,
1:09:15>> you want to match what this schedule
1:09:16thing is as closely as humanly possible.
1:09:18>> And that's it does hit. It says, "Hey,
1:09:20we're going to show you how to use them,
1:09:21get the most out of them, all of that."
1:09:23>> Okay. Then your business will never
1:09:24work.
1:09:25>> Okay.
1:09:25>> No, of course it will. Something's wrong
1:09:27here. There like there's no way this
1:09:29like something this I don't believe this
1:09:31data.
1:09:33>> There's no way 1% show up.
1:09:35>> It's 1% of customers.
1:09:38>> Yeah. It's not. It's like there's it's
1:09:40false. It's I've never seen even close
1:09:42to this. Either something you're
1:09:44tracking is incorrect or a piece of data
1:09:46that I'm getting right now is not true.
1:09:48>> Okay?
1:09:48>> There's no way that out of a 100
1:09:50customers who make a purchase, you say,
1:09:51"Let me talk to you about that purchase
1:09:52you just made that one out of a hundred
1:09:54shows up."
1:09:55>> So, we're we're digging into it because
1:09:56I have a major sales problem. And so,
1:09:59and so
1:10:00>> and it's good. My business is growing
1:10:02because of retention, but I have a
1:10:04terrible sales problem.
1:10:05>> I believe you. [laughter]
1:10:06>> Yeah. So, I'll bet you that these people
1:10:08are not getting worked or that some sort
1:10:10of uh uh integration is not happening.
1:10:12So, they're not either seeing the
1:10:13schedule, they're not getting remind.
1:10:15Now, if you said they get zero reminders
1:10:17and the the time zones are off and so
1:10:18they're showing up to meetings that
1:10:19they're not happening
1:10:20>> automated and a real person.
1:10:21>> Yeah, I would believe that for sure if
1:10:23there's something that's wrong. But
1:10:24fundamentally, if you're get customers,
1:10:27not even leads, like you can get better
1:10:28show up rates on cold cold leads than on
1:10:32on this, but you have somebody you
1:10:34bought.
1:10:35>> Yeah. like people like you could forget
1:10:37the schedulers. If I just outbound
1:10:39dialed 20 of these people, I'd get on
1:10:41the phone with them.
1:10:42>> And I've started that the last few
1:10:43weeks. We we're doing that as soon as as
1:10:44soon as they buy I have somebody that's
1:10:46on it.
1:10:46>> And is more than 1% of those people.
1:10:48>> It's been a couple weeks, you know, and
1:10:50but they're not showing up to meetings
1:10:51still.
1:10:51>> Well, they're picking up like it's not
1:10:53about if you're outbound dialing, they
1:10:54pick up the phone. That is the meeting.
1:10:56They showed they picked it up.
1:10:57>> Yeah. Yeah.
1:10:58>> You know what I'm saying?
1:10:59>> Well, yeah. We're texting them saying,
1:11:00"Hey, here we're trying to make you
1:11:02didn't schedule. Here's here's the
1:11:04schedule." Yeah,
1:11:05>> call him.
1:11:05>> Yeah.
1:11:06>> Hey, you bought this thing. Let me tell
1:11:07you about it.
1:11:08>> Okay.
1:11:09>> Let me show you how you can use it to
1:11:10make more money in your business. Would
1:11:11you like to learn more about that?
1:11:12Great. Let me set you with Greg. He's a
1:11:14master at this stuff.
1:11:15>> Let me tell you time that you're not
1:11:16busy with whatevers.
1:11:18>> Like they're not different. That's the
1:11:19big thing. Like for everyone, your
1:11:21avatar is not special. I promise you.
1:11:24And like my avatar is really busy. Every
1:11:26person here is busy and every person
1:11:28here is an entrepreneur. So it's not
1:11:29like there's fundamentally anything
1:11:30different about the food business versus
1:11:32the doctor business. Like a doctor
1:11:35person could be like, "Doctors are busy
1:11:36all the time." Yeah, but they show up
1:11:37for sales calls and so do restaurant
1:11:39tours. I know this because I looked at a
1:11:41company that did exactly what you do and
1:11:43they had normal metrics.
1:11:45>> So there's nothing different about
1:11:46restaurant tours.
1:11:47>> There's just something broken in your
1:11:48funnel,
1:11:48>> which is fine. So the TLDDR of this is
1:11:51that the sales team is broken. We need
1:11:52to fix that and the tracking is probably
1:11:53off.
1:11:54>> Yeah.
1:11:55>> Okay,
1:11:56guys. Thank you. Appreciate [applause]
1:12:03>> [applause]
1:12:03>> If you like this video and you're a
1:12:05business owner who wants to break
1:12:05through your current revenue ceiling, I
1:12:07distilled every lesson from scaling 10
1:12:09businesses past 10 million and three
1:12:10businesses past 100 million into a
1:12:12completely free scaling road map that
1:12:14I've used to go from 0 to 1, 0 to 10,
1:12:16and 0 to 100 plus. And so you can click
1:12:18here and you can check it out. Again,
1:12:20absolutely free. And since you're a
1:12:21business owner, appreciate you and uh
1:12:22enjoy.

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