You Don't Need More Customers. You Need Better Ones. — Transcript

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1. 0:00All right, we've got Timothy Shaker.
2. 0:02>> All right.
3. 0:02>> Business is advanced agent marketing
4. 0:04agency.
5. 0:05>> All right.
6. 0:06>> Revenue 4.8 million, profit 25% profit
7. 0:09margin.
8. 0:09>> So, 4.8 top line.
9. 0:12>> 25% margins, marketing agency.
10. 0:15>> All right, 25%
11. 0:19>> Oops. Oh what happened?
12. 0:21Oh, there we go.
13. 0:25Hey Tim, can you hear us?
14. 0:26>> Loud and clear, how's it going?
15. 0:28>> What's up?
16. 0:30>> Not much, just watching the live stream.
17. 0:32>> [laughter]
18. 0:33>> All right, so 4.8 top line, 1.2 million
19. 0:35bottom line, what's the issue? Where do
20. 0:37you want to go? What's the problem?
21. 0:39>> Yeah, so the short-term goal is getting
22. 0:42to a million a month.
23. 0:43>> Okay.
24. 0:44>> So, we're pressing the foot on the gas
25. 0:46in terms of scale.
26. 0:47>> Okay.
27. 0:48>> Um, we're in a similar revenue level as
28. 0:51watching the stream yesterday. You
29. 0:53talked about uh, AdGym launch before you
30. 0:55guys added in the back end and the
31. 0:57continuity.
32. 0:58>> Yeah.
33. 0:58>> That you guys were around the same level
34. 1:00as we are, and so like our back end and
35. 1:02our continuity I feel like could use
36. 1:04some work.
37. 1:04>> Yeah.
38. 1:05>> But, really just want to kind of get an
39. 1:06idea of what the highest leverage moves
40. 1:10are for us in terms of where we are to
41. 1:13I mean, basically we're talking about
42. 1:14tripling
43. 1:15>> Yeah.
44. 1:16>> while also keeping in the profit margin
45. 1:19at a solid level.
46. 1:24>> All right.
47. 1:26You want to You want to You want to take
48. 1:27>> and who do you sell to?
49. 1:29>> Yes, so we sell to insurance agents. Uh,
50. 1:32it's like a $15,000 offer, 15K for 3
51. 1:35months.
52. 1:36>> Okay.
53. 1:37>> And it's basically it's like a marketing
54. 1:39package, so essentially we help them
55. 1:41brand themselves so that they're viewed
56. 1:43as an expert.
57. 1:44>> Okay.
58. 1:45Heard.
59. 1:46>> Wait, so it's it's not just it's a
60. 1:48branding package, not running paid ads.
61. 1:51>> It's a combo, right? So, like basically
62. 1:53we put them in the ad and then we put
63. 1:55them in like a video where by the time
64. 1:57they go through the whole process it's
65. 1:58like they're seeing the agent's face
66. 1:59over and over versus just like buying
67. 2:01leads and then cold calling people.
68. 2:03>> So, are you putting content on social
69. 2:05media for them or are you just doing
70. 2:07like um
71. 2:08campaigns and retargeting campaigns and
72. 2:11what Is it just
73. 2:12>> It's Yeah, it's mainly paid ads. Like
74. 2:15>> Okay.
75. 2:16>> It's the posting on social's not part of
76. 2:18the service delivery. It could be, but
77. 2:21to be honest like
78. 2:22most of them are not going to do it.
79. 2:24>> So, do you say that you Like this is
80. 2:25this is just us us girls talking.
81. 2:28Um
82. 2:29do you tell them that you're building
83. 2:30them a brand, but you really just like
84. 2:31run ads for them and generate leads?
85. 2:34>> Uh well, the whole idea is this we call
86. 2:36it the personal brand funnel.
87. 2:37>> Uh-huh.
88. 2:38>> So,
89. 2:39they are building a brand cuz they're
90. 2:41the face of it.
91. 2:43But, it's not like we're like posting
92. 2:44and building like an Instagram or
93. 2:46anything.
94. 2:46>> So, so you're basically just getting
95. 2:48them in ads and then running ads.
96. 2:50But, they're in them.
97. 2:50>> Exactly.
98. 2:51>> I have a question. Do you know what
99. 2:52percentage of payments fail and what
100. 2:54percentage of customers pay in full the
101. 2:5615K over 3 months?
102. 2:59>> Um okay, we've been running the 15K
103. 3:01offer since April. Our payment
104. 3:02completion rate on the 15K is pretty
105. 3:04solid.
106. 3:05>> Okay. So,
107. 3:06>> to see exact metrics. I don't I don't
108. 3:07know.
109. 3:08>> What's What's CAC? What's CAC?
110. 3:10>> Uh the CAC is like 3,500.
111. 3:13>> What's LTV
112. 3:15fully loaded?
113. 3:17>> Um to be honest, I I don't have like
114. 3:20those numbers right in front of me.
115. 3:22>> What What
116. 3:23Like you wanted to get to
117. 3:25>> each quarter there.
118. 3:26>> How many customers do you get per month
119. 3:27and how many customers do you have
120. 3:28active right now?
121. 3:30>> We get about 50 a month. It's scaling up
122. 3:33currently, but currently in our group we
123. 3:36have over 250 people.
124. 3:39>> Okay, so do you know what churn is of
125. 3:41So, after the 15K what do they what do
126. 3:43they pay for?
127. 3:45>> So, that's kind of like that's kind of
128. 3:47what we're trying to create and
129. 3:48structure.
130. 3:49>> Okay.
131. 3:49>> Basically, what we've been doing now is
132. 3:51my business partner she's jumping on
133. 3:52back end sales and trying to re-enroll
134. 3:55people.
135. 3:57Um
136. 3:57But the idea would basically be to like
137. 3:59help them scale their agency, help them
138. 4:02scale their brokerage.
139. 4:03>> Yeah.
140. 4:04>> Um and then just, you know, ideally a 5K
141. 4:06per month retainer would be what we
142. 4:08would shoot for, but
143. 4:09>> Yeah.
144. 4:09>> We've had a couple people take that.
145. 4:11Honestly, like the take rate on that has
146. 4:13not been as high as we would like.
147. 4:14>> Heard. Let me just Let me give you some
148. 4:15Let me give you some nugs. All right.
149. 4:17So, thing one, if you're trying to sell
150. 4:19them on the back end, you're too late.
151. 4:21You want to get the renewal before the
152. 4:22end of the third month. So, you want to
153. 4:24be looking to get in the renewal at like
154. 4:26end of month one, halfway through month
155. 4:27two.
156. 4:29You want to be You want to have them
157. 4:30still in cycle, not like this is now a
158. 4:32new purchasing decision. So, it's more
159. 4:33like let's keep the party going,
160. 4:35uh not like now do you want to take the
161. 4:37next step, all right? To be clear.
162. 4:39That's number one from a timing
163. 4:40perspective.
164. 4:42Uh number two, I think you need to have
165. 4:43a better offer uh for the back end. And
166. 4:46so, what I would do is like maybe it's a
167. 4:48uh so, you they bought three, and you
168. 4:50say, "Hey,
169. 4:51uh if you basically let's get you let's
170. 4:54you let's roll this forward for another
171. 4:55three,
172. 4:56um and we'll roll your last month into
173. 4:58the next month." So, basically it's like
174. 5:00you buy you buy two, get one on the
175. 5:02back. So, then it's $10,000 for three
176. 5:05months as a continuity.
177. 5:07And the main reason I can take that
178. 5:08$5,000 off is because the setup that we
179. 5:10did up front, we don't have to do it
180. 5:12again. So, I'm willing to do that.
181. 5:14>> Mhm.
182. 5:15>> Right?
183. 5:17Because the thing that you're actually
184. 5:18looking for, I'm just telling you right
185. 5:19now, so if you're selling 50 deals a
186. 5:21month, if you want to get to a million
187. 5:23dollars a month, you need LTV to be 20K.
188. 5:25And right now, you're close, which means
189. 5:27that I'm going to guess that your
190. 5:28conversion on the back I mean, you
191. 5:29already said it is pretty bad, right?
192. 5:32>> I mean, honestly, up until very
193. 5:33recently, we had the CSMs trying to do
194. 5:35it, and they just weren't
195. 5:36>> Right, they're not sales. No, heard.
196. 5:38Yeah, I got I got you. Yeah, also the
197. 5:40other piece is like a an interesting
198. 5:42option here is that you can just like
199. 5:44there's there's two that come straight
200. 5:45to mind for me. One is that you just
201. 5:47sell the 15 for three and then you sell
202. 5:49them again, you know, six weeks in, four
203. 5:51weeks in, whatever for the next deal.
204. 5:53Credit a 5K for the for the setup that
205. 5:55they don't have to do and then they can
206. 5:56pay for that. That's option one. Option
207. 5:59two is that you just say it's 15K and
208. 6:01then after the first three months, it
209. 6:03continues at three grand a month or
210. 6:04$3,500 a month. It just automatically
211. 6:07continues. Now, when you go in, you
212. 6:09still want to sell them on it, but you
213. 6:10don't need to actually have them do
214. 6:11anything transaction-wise. So, it's like
215. 6:13they just say yes and you say awesome,
216. 6:14we're already squared away, we just want
217. 6:16to make sure tell you what the next
218. 6:17steps are looking like and this is where
219. 6:18we're going from here.
220. 6:20>> Got it. Makes sense. So, like I think
221. 6:22you you call it like
222. 6:24was it short tail, long distribution?
223. 6:26>> Yeah, big head, long tail. Yeah.
224. 6:28>> Yeah, got it. Okay. What are your
225. 6:29thoughts on um
226. 6:31doing like rev shares or app splits or
227. 6:33contracting the agents directly?
228. 6:35>> Everything that
229. 6:36>> we met at the school games and you were
230. 6:37saying the brokerage is like 100% the
231. 6:39play.
232. 6:40>> Oh, well, then yeah. The brokerage is
233. 6:42the play. I mean, like if you get if
234. 6:44anybody who's listening to this, like in
235. 6:45general, if you have a a legal way to
236. 6:48actually split revenue with a business
237. 6:51that is
238. 6:52like any of you mind you, if you're good
239. 6:53at what you do, which if you listen to
240. 6:54my stuff, please be good at what you do.
241. 6:56Um that is always going to be the best
242. 6:58way to cuz performance is always the is
243. 6:59the most lucrative for winners.
244. 7:01>> I think there's a huge caveat on that
245. 7:03one.
246. 7:03>> Yeah, then put your your caveat on it.
247. 7:04>> Well, I would just say like what are the
248. 7:05results we're getting people on the
249. 7:06front end cuz like even if your offer's
250. 7:08shitty and your sales
251. 7:09>> That was my caveat. You got to be good.
252. 7:10>> I'm asking.
253. 7:11>> Okay.
254. 7:11>> Like that's how I'm curious of is like
255. 7:13what are the results we're getting
256. 7:14>> trying to say like I didn't know. I was
257. 7:15like I said this.
258. 7:16>> I know, but I'm I'm just I know you said
259. 7:18it as a caveat, but I'm asking
260. 7:19specifically right now because I mean,
261. 7:21we've seen it in in our businesses in
262. 7:22our portfolio companies, which is if
263. 7:23you're good enough on the front end, you
264. 7:25can have a shitty sales team, a shitty
265. 7:26CSS team, a shitty offer and people just
266. 7:29keep wanting to pay you. You know what I
267. 7:30mean? Because you're really good on the
268. 7:32front end for getting them the results.
269. 7:33So, I'm just trying to understand if is
270. 7:35it an expectations issue or a procedural
271. 7:36issue?
272. 7:38>> Are you asking if if we're getting
273. 7:39people results or something? I'm
274. 7:41clearing the question.
275. 7:41>> Yes, but what's the average results?
276. 7:43>> Yeah, correct.
277. 7:45>> Um well, honestly, to like to be clear,
278. 7:48I have a hard time getting people to
279. 7:49report the results back to us. That's
280. 7:51been like a big bottom neck for us, I
281. 7:52would say on that.
282. 7:53Um but the clients who are crushing it
283. 7:55are like really crushing it. Like we had
284. 7:56one girl who just came in
285. 7:58um on her first appointment, she found
286. 8:01someone who was going to roll over like
287. 8:02$4 million in annuities. Uh we get we
288. 8:05get people to close like six-figure
289. 8:07>> Yeah.
290. 8:08>> insurance policies all the time.
291. 8:09>> So, let me Let me tell you what Layla
292. 8:11the first thing that Layla wrote down
293. 8:13when you said your the name of your
294. 8:14business or what you do.
295. 8:16She wrote down price and then she wrote
296. 8:17down avatar.
297. 8:19And so right now, there's two elements
298. 8:21that you need to control, right? So, if
299. 8:23like what I hear from you is right now
300. 8:25is that you have volatility in your
301. 8:26results. You have some that are super
302. 8:28good and some that are nothing, right?
303. 8:31And from the perspective that all
304. 8:33outcomes flow from you, which you should
305. 8:34take that, you know, ownership on life,
306. 8:36then you need to pick either better
307. 8:39customers or number two, you need to
308. 8:41train them better or combination of
309. 8:42both.
310. 8:44And so maybe there's a client that
311. 8:47you're getting that is a certain type of
312. 8:49avatar of insurance agent that this
313. 8:51thing is worth $50,000 for and those
314. 8:54people all succeed rather than trying to
315. 8:56find the blended average of zeros and a
316. 8:58hundred. Does that make sense?
317. 9:00>> Yes, you're saying like maybe decreasing
318. 9:03units and just selling
319. 9:04>> Yes.
320. 9:05Yes. Yes.
321. 9:06>> Yes.
322. 9:07>> So, I'll get I'll tell you a story. I'll
323. 9:08tell you a story that'll reinforce this.
324. 9:10So, you gave the analogy with Jim Rohn.
325. 9:11So, I just want to make sure that you
326. 9:12remember this one point before I say
327. 9:14that, which is that you need you need
328. 9:16LTV to be over
329. 9:18if you really like you want to hit a
330. 9:19million dollars a month, you need LTV to
331. 9:21be at 20 or 25,000 minimum in order to
332. 9:23get there, right?
333. 9:25That's what gets you there. So, anybody
334. 9:27who's watching, it's sales velocity
335. 9:28times lifetime value equals hypothetical
336. 9:30max. So, if you're curious like how that
337. 9:32works, um it's SV times
338. 9:36um
339. 9:37Hmax.
340. 9:40>> Um and so this equals your hypothetical
341. 9:42max. You're like, "Hey, I So if you want
342. 9:43to reverse engineer a goal, you say
343. 9:44what's the revenue goal I want to hit?"
344. 9:46You say, "Cool, well I'm doing this many
345. 9:47deals a month, which means this is how
346. 9:49much I have to have every deal be worth
347. 9:50over the lifetime in order to get this
348. 9:52revenue eventually." Okay, back to you.
349. 9:54So
350. 9:55So Layla's suggesting that you do 25k
351. 9:58for 3 months instead of 15.
352. 10:01>> We've seen we've tested this in multiple
353. 10:03businesses where essentially it's
354. 10:05literally the exact price increase
355. 10:06actually, which is you go from 15 to
356. 10:0725k, there's barely a difference in
357. 10:09terms of conversion, as long as we're
358. 10:11just we're qualifying it to a little bit
359. 10:13more on the front end. So maybe you lose
360. 10:15I think it's like the average business
361. 10:16we've lost like 2 or 3% barely any on
362. 10:19conversion, but we've increased the
363. 10:21price by $10,000 and so like I actually
364. 10:23think you could get the 25k on the front
365. 10:25end if you just qualify your clients
366. 10:26more heavily.
367. 10:27>> And just be okay with CAC going up. So
368. 10:29if CAC goes from 3,500 to 5k, who cares?
369. 10:33Because the thing is just that those
370. 10:34people are going to stick and that's
371. 10:35ultimately going to make your business
372. 10:36way more valuable.
373. 10:36>> The biggest issue that we see with
374. 10:38agencies cuz we not only built a
375. 10:39software for agencies, we've there's
376. 10:41tons that come through the door is just
377. 10:43they're so scarcely minded that they
378. 10:44will not dial in the avatar and it seems
379. 10:47contra like contradictive to what you're
380. 10:49trying to do, but it will absolutely
381. 10:51result in you get two things from that,
382. 10:52right? One, you're going to get better
383. 10:54talent because you have better clients.
384. 10:55>> Yeah, huge.
385. 10:56>> clients that you have, the better talent
386. 10:58you're going to get and that's one of
387. 10:59the hardest things for an agency to
388. 11:00scale is that a lot of people don't want
389. 11:01to work for an agency, it's a commodity.
390. 11:03There's so many agencies out there and
391. 11:04so what makes yours different? And the
392. 11:06worst thing for good talent is shitty
393. 11:08clients. You know, when I was hiring for
394. 11:11example for acquisition.com in the
395. 11:12beginning, I asked every single person I
396. 11:13brought on for the portfolio, what's
397. 11:15your biggest fear and what would make
398. 11:16you quit? And every single one of them
399. 11:18said, "If we bring on shitty partners."
400. 11:20>> Mhm.
401. 11:21>> It's the same and so in order for you to
402. 11:23have
403. 11:24to reach the revenue goals that you
404. 11:26want, I really feel confident that if
405. 11:27you raised your price, you had better
406. 11:29clients, you're going to be able to get
407. 11:30better talent, they're not going to
408. 11:31leave and it's going to make the
409. 11:32business in the short term, it might
410. 11:35feel like, "Oh gosh, we have some
411. 11:36refiguring out to do." But I think in
412. 11:37the long term, you'll make way more
413. 11:38money, and it'll be a better business to
414. 11:40own. You're going to like it more.
415. 11:41>> So, let me tell you one of the
416. 11:42breakthroughs that we had with GymLaunch
417. 11:44in the very beginning.
418. 11:45Um obviously, like a personal trainer
419. 11:48could conceivably use what GymLaunch
420. 11:51taught, right? And what GymLaunch
421. 11:52licensed. They could They could. There's
422. 11:54no There's nothing that really stops a
423. 11:55personal trainer from using it.
424. 11:57The problem is that they're just not
425. 11:58ready.
426. 11:59They're just not that level. They're
427. 12:00just not. You know what I mean? They're
428. 12:01They're not They're not responsible
429. 12:02enough. They haven't learned the meta
430. 12:03skills.
431. 12:04>> They're like, "Why aren't you working my
432. 12:05leads for me?"
433. 12:06>> Right. Yeah, just like that. They didn't
434. 12:07>> make a sale.
435. 12:09Yeah, I can't make sales. This is your
436. 12:11problem.
437. 12:11>> Right. And so, what's interesting is
438. 12:13that everybody who competed against me,
439. 12:14so this is like I really want you to
440. 12:15like like take this to heart. Everyone
441. 12:17who competed against me in the in the in
442. 12:20the gym space, and I'll just say the
443. 12:21fitness space,
444. 12:23couldn't say no to money.
445. 12:25And as a result, their brands were
446. 12:27diluted because they had so many people
447. 12:29who didn't get results. And it might not
448. 12:31have been because of anything they did,
449. 12:32but because of a strategic decision they
450. 12:34did to choose to take bad customers. And
451. 12:37so, instead, we just said, "If you like
452. 12:40we figured out cuz just like you, you
453. 12:42had like a couple people who were doing
454. 12:43well, right?" So, we looked at our top
455. 12:4420% of customers, and we said, "What do
456. 12:47these people have in common in terms of
457. 12:48the behaviors they do and the people
458. 12:50they are in terms of the like
459. 12:51demographics and like quantitative facts
460. 12:54about their business that are
461. 12:55objective." So, we figured out that it
462. 12:57was eight It must be a gym owner, number
463. 12:59one. Number two, they must have a signed
464. 13:01lease, number two. Number three, they
465. 13:02have to have at least one employee.
466. 13:04And number number four, they have to
467. 13:06have at least 30 members.
468. 13:09And if they had those four things, then
469. 13:10they would have a very high likelihood
470. 13:11of being successful. And so, that became
471. 13:14our qualification inside of our funnel,
472. 13:16inside of our application, inside of the
473. 13:17copy of our ads, inside of our landing
474. 13:18pages. We repeated it everywhere. It was
475. 13:20the first thing we said on sales calls.
476. 13:21And by doing that, the right person's
477. 13:23like, "Oh yeah, perfect. I meet all of
478. 13:24these requirements. This is for me." And
479. 13:26to the same degree, people who are not
480. 13:27that are like, "Oh, this isn't for me."
481. 13:29And so, it actually didn't really
482. 13:30increase our CAC that significantly, but
483. 13:32it dramatically enhanced the LTV of each
484. 13:34customer. And this is why like I I told
485. 13:36a story in I think one of the other
486. 13:37books, maybe I told it in the Money Mind
487. 13:39book, but there was a there was a there
488. 13:40was a guy that I helped who was in the
489. 13:42same space in fitness, and he also sold
490. 13:44personal trainers and stuff. He was
491. 13:46doing the same sales velocity as me,
492. 13:48same number of sales per month. But his
493. 13:50LTV was like 7K. Our LTV was 42. And
494. 13:54because of that, we were making like 300
495. 13:56times the profit.
496. 13:58That's the game.
497. 14:01>> Got it. So, just I mean, that's
498. 14:03interesting you say that cuz we've done
499. 14:04that in the last year, and it's just
500. 14:05gotten better and better and better
501. 14:07every time we do that. So,
502. 14:09here's kind of the the thing I'm trying
503. 14:11to balance is cuz like I I don't want to
504. 14:13stop at a million a month like I mean, I
505. 14:15know you're a huge fan of the insurance
506. 14:16industry, and there's there's a lot of
507. 14:18room that you can go here.
508. 14:19>> Yeah.
509. 14:19>> Um so, it's like I view the marketing
510. 14:21agency like it seems like in this
511. 14:23industry, no one has a scale marketing.
512. 14:25>> Yeah, yeah.
513. 14:26>> So, I think this is a good launchpad to
514. 14:27kind of get into something even bigger.
515. 14:30>> Yeah.
516. 14:31>> What I'm trying to figure out is what
517. 14:32that flight is.
518. 14:34>> So, let me just tell you what
519. 14:35Let me
520. 14:36>> Yeah, go ahead.
521. 14:36>> You got to You got to do this to do
522. 14:37that. All right? So, don't don't try and
523. 14:40cure cancer before you like figure out
524. 14:42how to do like test tubes and you know,
525. 14:45do do things under microscopes. So, the
526. 14:47point is this, if you can figure out
527. 14:49who are the right agents are and what
528. 14:51the quantitative metrics are, that will
529. 14:53then inform if you want to do M&A and
530. 14:55new partnerships down the road because
531. 14:57you need to have way better predictive
532. 14:58skill as who's a winner and who's not
533. 15:00for you to even think about getting into
534. 15:02that. And so, you got to do this first
535. 15:04either way. It's step one regardless.
536. 15:05So, that should give you a lot of like
537. 15:07big exhale. You're not doing the wrong
538. 15:08thing, you're doing the first thing.
539. 15:12>> Okay.
540. 15:12>> Cool.
541. 15:13>> Cuz we're spending like the almost 200
542. 15:15grand or over 200 grand a month on ads.
543. 15:18>> Yeah, dude.
544. 15:18>> So, like if we if we need less volume,
545. 15:21>> Yeah.
546. 15:21>> do you think we need less ad spend more
547. 15:22like cold outreach kind of stuff? No, I
548. 15:24think you should still spend the same
549. 15:25money. You just need to be very clear in
550. 15:27your ads who it's for.
551. 15:29>> Okay.
552. 15:30>> Yeah, just call out the avatar in the
553. 15:31ads.
554. 15:32>> Yes.
555. 15:32>> That plus the price plus maybe you add
556. 15:34in, you know, a VSL or something like
557. 15:37that before they book a call if you
558. 15:39already have one. If you don't already
559. 15:40have one, then I think like that alone
560. 15:42will make the biggest difference. It's
561. 15:43just a messaging.
562. 15:44>> Yeah.
563. 15:45>> Got it. So, I just need to do 80/20 on
564. 15:46the clients
565. 15:47>> Yes.
566. 15:48Yes.
567. 15:49>> Yeah, when it comes to an agency, it's
568. 15:50just like the really
569. 15:52hard high churn just does not scale. It
570. 15:54it breaks at some point whether it
571. 15:56breaks because your talent flywheel
572. 15:57doesn't spin or because the client
573. 15:58flywheel doesn't spin. One or both of
574. 16:00them on a spin.
575. 16:00>> I'll tell you right now, I have yet to
576. 16:02see an SMB agency crack 10 million. And
577. 16:06I've seen a lot of agencies. Most
578. 16:08agencies get stuck at one to three.
579. 16:10Sometimes they get to five, maybe seven.
580. 16:12Right? But the reason is that it's
581. 16:14churn. Churn is too high. So, they just
582. 16:16become these churn factories and CAC
583. 16:17continues to go up and they never get
584. 16:19any kind of compounding. And so, then a
585. 16:21new agency comes in and then just scoops
586. 16:22up lower CAC and then eventually their
587. 16:23CAC gets high as the repetition catches
588. 16:25up and that's like the spin cycle that
589. 16:27everyone goes on. The only way to break
590. 16:28free of that is you do one of two
591. 16:30strategies in agencies. Number one is
592. 16:32that you actually actively decide to be
593. 16:34strategically low-priced. So, you say,
594. 16:36"I'm going to organize the entire
595. 16:37business with VAs and AI and automation
596. 16:40so that I can provide basically a
597. 16:42low-price commoditized service of lead
598. 16:44gen or whatever it is for 300, 500
599. 16:47dollars a month." And then, believe it
600. 16:48or not, you can get 38-month, 40-month
601. 16:52stick rates, super low, 2%, 3% churn for
602. 16:56those types of customers because they're
603. 16:58like, "I know I should market, but I
604. 17:00don't want to do it and these guys do
605. 17:01good enough, right?"
606. 17:03>> Right.
607. 17:03>> Or
608. 17:04you say, "I'm going to go upmarket
609. 17:07because I'm going to go to a legitimate
610. 17:08business." Because the middle ground is
611. 17:10where everyone lives and everyone in the
612. 17:12middle there wants somebody who's going
613. 17:14to be their savior. They want them to do
614. 17:15this. I want you to do the sales for me.
615. 17:17I want you to do lead nurture for me. I
616. 17:18want you to do everything for me and
617. 17:19just send me money in the mail. It's not
618. 17:20going to happen. Only the experienced
619. 17:22business owners get that. That's not
620. 17:23going to happen. Or you actually price
621. 17:25it so that you have the gross margins in
622. 17:27a very, very, very scalable, very low
623. 17:29cost version of this. Um that you can
624. 17:32you can price it at a place where it's
625. 17:33like they know they're not going to cuz
626. 17:35the for them $2,500 a month, $3,000 a
627. 17:36month is everything. It's so much money,
628. 17:39right? So if $500 a month is what it
629. 17:41feels like for a legit business to spend
630. 17:43five or ten thousand a month.
631. 17:45Right? Hurts. Okay.
632. 17:47Rock and roll.
633. 17:48>> Awesome.
634. 17:49>> Appreciate you, man. Thank you, dude.
635. 17:51Thank you for letting me book. If you
636. 17:52like this video and you're a business
637. 17:53owner who wants to break through your
638. 17:54current revenue ceiling, I distilled
639. 17:56every lesson from scaling 10 businesses
640. 17:58past 10 million and three businesses
641. 17:59past 100 million into a completely free
642. 18:01scaling roadmap that I've used to go
643. 18:03from zero to one, zero to 10, and zero
644. 18:05to 100 plus. And so you can click here
645. 18:07and you can check it out. Again,
646. 18:08absolutely free. And since you're a
647. 18:09business owner, I appreciate you and
648. 18:11enjoy.