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What's going everyone? Welcome back to the game. Today I want to talk about scalable value.

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Sounds like two very big kitschy terms, you know, scale and value. But I'm going to bring it down to

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the dirt for you. So I had the value equation, which is something that I wrote a long time ago

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inside of the offers book, which I originally got from my gym days. I'm just trying to think like,

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what are the components that make anything valuable in general? And one of the things that's come

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up more recently because I deal with a lot of newer business owners on school was this concept of

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people struggling to make things that are good. I kind of like lost my shit for lack of

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better term on the one call a week that I do inside of the school community from some of the

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questions that I was getting. And so I wanted to kind of share my rant that I had there with you,

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which is oftentimes I see entrepreneurs put the car before the horse and I'll explain what I mean

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by that. They will focus on trying to make something scalable before they try and focus on making it

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valuable. And so I see this kind of like in the gym world when you know a guy would come in and say,

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hey, you know, I don't want to get too jacked, right? Because then I'm going to have to change my

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clothes. And I'm like, well, why don't we just start with you looking like you work out? Like,

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why don't we just start with that, right? And so basically it's like, oh, if I lose weight,

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then I have to change my clothes. It's so backwards in terms of thinking, right? That they're basically

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saying like, I don't want to make any sales because if I make a thousand, then I'll have problems.

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It's like, duh, but you don't even have a sale yet. I think that scale should honestly be completely

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removed from your vocabulary, especially if you're starting out. But I think what I've seen at

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least for me is that I've been willing to do things that are unscatable for significantly longer

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than most people do. And I'll tell you a tactical story about this. So when I was running my gyms,

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I would do these weigh-in. I would sell like, you know, call it 50 people who would do a challenge

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with us. And that would be, you know, a couple of weeks of sales or whatever. And then I would have

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a Saturday where I would get everyone in for the nutrition consult. And I would do 48 101's.

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And that sounds absurd, right? 48 101's. And so I would do two every 30 minutes for 12 hours.

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So I do 48 of them back to back to back. And I had higher average revenue per member than anybody

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else in all the gym, you know, groups that I was in. What I would sell there was I would be selling

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supplements. I already sell services. And so I would meet them 101 for nutrition and tell them

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supplements. It was an onboarding. Everybody else who competed against me is like, ah, that's such a

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waste of time. I don't want to spend a full, you know, spend a day doing one of ones like, I just

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get them in a room and then I just pitch them. But the thing is that like they would close, you know,

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30%, maybe 50% on binds of product. And they would average call it 50 bucks ahead in supplements.

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But I would average like $250 had. And so I was averaging five times more than them. And it was

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because I was just willing to meet with people one on one over and over and over again. And don't

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be wrong, those days were exhausted. Like at the end of the day, it was like going through a gauntlet.

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But when I zoomed out, I thought to myself like, well, that business owner worked for the day.

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And I worked for the day. And I made more money than him. And so it's like, we have this a

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version to doing like repeated tasks. But it's like that repetition. And I didn't even think about it

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then. But like that repetition is also what made me so good at sales. And when I talk about the

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4,111 sales, I close like, I don't even count the supplement sales. I have no idea how many that

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there's a lot is a lot, a lot. Like if I counted those, it would be absurd amount, right?

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What if you're like doing math would be double. But it's it was a lot. And it was in such rapid

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succession that I got such fast feedback loops on what I needed to say and how I needed to pause and

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all that stuff that I got really good. And so I had a different business owner who came out for

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one of our scaling workshops. And I'll tell you what they did. I kind of told him the story.

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So he had a business where he would do these kind of like events. And they would sell, they did

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like a million dollars at their event. So it worked out great. And after they did that event,

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they were like, man, that's a lot of work. And so then they went back to kind of like they're like,

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how do we automate this? And so they try to like, you know, make it a recording and do all the stuff.

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And you know, the row has dropped. So return on that's been dropped precipitously. It went,

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wait, wait, wait, wait. When I was talking to him, I said, well, you got more than 10 to one

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when you ran your event. Why don't you do one every month? And he's like, man, it would just be

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a lot of work. And I was like, well, I mean, yeah, but you'd also make 10 million dollars.

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So I mean, no, but like maybe 10 xing my income feels like a pretty good idea. You know, like

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worth it, right? But he was like, okay, I have to convince my founder of do it. You know,

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the co-founder of doing this because, you know, his co-founder was kind of like the more public

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face he was kind of the more the integrator. So then we went through that of like, okay, how do we

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parse it out? So, you know, this personally has to show up and then you can do everything else.

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And so we walk through it simply asking like, what would be the most absurd version of this?

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And then rather than saying, okay, well, I can't do that because it's a lot of work just being like,

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no, what if I did do it? Like, what if we did meet one on one with every single customer?

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And the thing is is that that repetition ends up paying so many more dividends because like,

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you get the immediate reward of like, you'll definitely make more money for sure. But on top of that,

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you'll gain way more skill. I think that this consistent approach to unskilled ability has been

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one of the things that has allowed me to move forward faster along the kind of business journey.

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And they even talk about this in the world of like software. Like, why comment are there's tons of

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clips about Sam Altman and Paul Graham talking to why comment are founders. These are the companies

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that become the most scalable businesses in the world. And they talk about doing the unskailable

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thing. They talk about handing in the supermarket and just trying to get people to to use your app.

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And it's like, well, it's not scalable. It's like, yeah, but it's not valuable yet.

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One of the things that I was telling some of these new business owners is like, they're,

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they're trying to have a lead magnet to get people to engage, right? To get engaged leads.

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Their lead magnet is they're trying to just put like a PDF together. And they're like, well,

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you know, you have a PDF. I'm like, yeah, but I also have a really long history of

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of positive products that I've put out. If you have two international bestselling books,

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then yeah, when you have another written format that comes out, people tend to want that because

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they associate or approximate whatever the lead magnet is with the other thing that they they

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bought or consumed. And so that makes sense, right? But what I told them and what so few of them

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actually do, I said, why don't you just give away five hours of your time? 101. And so many of them

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are like, oh, but that's so much work. I'm like, bro, you're broke. You're broke. The alternative

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is nothing. You make no money. And so it's like, why can't I only take on 10? I'm like, well,

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you have zero. And they're like, what do I do after 10? I'm like, we will solve that with the

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resources you gain from making money. Here's the 201 version of this. Is that when you do things

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that are unscalable, you tend to also be able to get you can charge significantly more. You have

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premium pricing, you get way more profit from doing that. And guess what all that extra profit

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and information allows you to do? Invest into making it more scalable because you'll also be able

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to parse out the components of your unscalable thing that are the most valuable. And then say, okay,

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well, these components, I probably can automate. They take me just as much time as the most valuable

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part, but they're not as valuable. So they take they cost the same time, but aren't valued as high.

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Well, cool. Then I will automate that. And so then what you're doing is basically

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focusing on the biggest point of leverage where you get the greatest return for the effort they put

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in and then trying to scale that part or trying to scale everything else except for that. And so

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that gives you this huge multiplier and the remaining effort that you put in. I think you just

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got to roll your sleeves up. I still do this, though. I want to give more examples around this,

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but it's like, I want to beat this in. It's like, if your lead magnet isn't that good,

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consider adding more unscalable value, consider adding more personal touch, consider adding more

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personalization to the stuff that you sell. Like if I said, hey, like, let's say you're a beginner

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website designer developer, right? You can try and think of all of these amazing things that you

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could do for someone. But if you just said, I will give you five hours and I will improve your

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website. A lot of people will just take you up on that because what happens because I was thinking

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about this, I was like, why is that unscalable value more valuable? And so if I look at the value

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equation, I think it's actually all top side. So for variables, dream outcome, perceive like

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achievement time, so speed, how fast it happens and then effort and sacrifice. Well, if you provide

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unscalable one-on-one attention to somebody, a prospect, guess what happens? Well, the likelihood

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that they get what they want because it's one-on-one goes way up. The amount that they have to work

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goes way down because it's you doing the work. And the amount of time delay becomes

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come irrelevant because they're receiving the value in real time with you. So it's this unbelievably

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valuable product. I mean, it is a product. So if you're doing this web development and you're

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doing this and you're providing this unscalable value, one of the other things that it allows you

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to do, especially if you're starting out, is that you get all of this face time with your customers.

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And so Paul Graham said this and I've repeated a lot, which is that you can solve every problem in

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your business by simply talking to your customers. And so if like your marketing is not working, talk

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to your customers. If your product is not delivering, talk to your customers. Like those are the

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core value criteria, like you have to let them know about it, then you have to deliver it.

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If you want a great way to figure out what to sell, talk to people one-on-one and do it for free.

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And then ask at the end, hey, if we were to work together and I charge this much, what would

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that look like to you? And then you can have them tell you the offer to sell them. Here's the

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big one. So this is the big, this is the big pain point, which is, well, shoot, I'm going to get

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all these tire kickers, all these people who don't really want to do this, who are going to take me

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up and waste my time. Well, guess what you can do. When you give an amazing offer, you can add friction,

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you can add qualifiers. And so I'm not saying give five hours, three hours, do a full project for

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any prospect. I am saying only do it for qualified prospects. Imagine right now the most

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perfect prospect that you can imagine, right? It checks all the boxes, right? Well, you can make your

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free thing only available to those people. And so someone can still absolutely have to qualify

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for your free thing. And so people have this misconception that because it's free, I have to give

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it to everyone. But the thing is, it's free to them. It's not necessarily free to you because you

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have a hard cause associated with your unskilled with value. I'm only going to make this investment

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for qualified lead. And so when you marry those two things together, all of a sudden you have unskilled

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with value, but only being delivered to the people who have the highest likelihood of purchasing.

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And whose feedback you value the most. And who will tell you the offer that will have the highest

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likely converting them. And so you can do this when you're starting up new product lines. So this is,

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this is for the larger business owners for listen podcast. You can use this strategy or technique

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when you're trying to create new lead magnets for a new audience or a new avatar. If you're again,

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trying to expand or just get into or just improve your advertising, being willing to do work

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that you know has to happen in space and time and then disappears is the work that oftentimes in

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my experience has resulted in the deep learnings that set me apart or set my business apart from

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other people in the marketplace that weren't willing to do it. And I'm always amazed by this.

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It's like if you knew that you could beat all of your competition because you have an information

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advantage, why would you not do it? And not only that get paid more for doing it.

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I don't get it. And so I think that number one, I try to reverse engineer from what

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absolutely insane would be and then trim down. So in the offers book, I talk about the Trim and Stack

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process. But I think most people trim too much or trim the wrong stuff because what happens is

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and this is where people mess up is that when you trim the unscalable thing, you also trim the

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unscalable price. But price adjusts with value. You know, I tell the example in the book like, yeah,

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you could theoretically fly out to your to your prospects house, right? And then like reorient

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their kitchen and go grocery shopping with them. It's like, well, of course you wouldn't do that.

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Well, would you do it for a million dollars? Probably. We basically sell out of our own wallet

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and cut things that a prospect would otherwise deem very valuable. But we don't break down into

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the actual dollars in sense what it would cost us. So it's like, let's use that crazy example. You fly

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out because you're an online trainer and you sell this, you know, this, this own boarding process

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which is absurd. By the way, if you do want to onboarding, guess what happens? You get more of the

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four hours. If you don't know what the four hours are, I'll make another podcast about these four. But

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number one, you want to review. Number two, you want referrals. Number three, you want retention.

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Number four, you want resells. Every customer you want those four things. Those are the actions you

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want them to take. And so when you onboard someone, one, one, you increase the likelihood that all

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four of those things occur. But let's play it out. You're like, I can't, I can't do that. Okay,

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well, if you charged 25,000 a year, would you do it? Well, shoot. Okay, well, how much does a flight

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cost to their house? Okay, you planted ahead. You know, say, say round trip, it costs you a thousand

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bucks. You know, you don't need to stay at the, the rits, right? Just stay there for a day and you

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can even fly in and fly out. Not even have you come at first thing in the morning, leave, leave

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in the evening. You don't even have to stay at hotel. So if you did that, maybe you're knocked

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down to 500 and it costs you a day and it costs you $500. If you sell five of these a month,

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well, then you have a million dollar business and it's almost all profit and your cost on that

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is a day and $500. So if you could get three times more of those sales and the added cost per

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customer was a day and $500, you'd probably do it. But no one just takes that, like, there's

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so many people, I just don't take like the would, okay, what would it actually take and then what

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would that actually cost? And then this is America. You can pick your price, just pick a price

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where you'd be stoked to do it at. And I think that a lot of people don't, they're not willing to

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start with us unscalable value. And I think it's the best place to start. Here's where this is

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also cool is that if you've, if you've heard of the Tesla model, right? Where Elon started with

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the, the roadster, the most expensive car, which most people couldn't afford, then he moved on

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down, down market, which is a hundred thousand more car. And then he moved down to the model three

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and then he moved on to the Y, right? He kept going kind of down market, right? And so that whole

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process, that whole concept basically allows you to borrow the brand credibility of the premium

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product ahead. And so if you only take on customers that pay you $25,000 a year in order to help them

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completely transform their lives, then when you do come out with a more scalable version,

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there's a reason for it that makes sense. You say, hey, I'm completely packed at my highest level.

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I can't do this level of service, but what I can show you is all the stuff that I do with them,

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but I'll do it with you rather than doing it for you. It's reverse of what is typically taught,

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but it's in my opinion one of the better ways to do because you're going to get way more intimate

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knowledge of all the problems that someone's going to experience doing it hands on with them,

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so that you then can do a, a more helped or consultant consultative version, which then

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eventually turns into the do it yourself or even more scalable version. And so what you want to do

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is you want to do the unskillable value so that you can make the best scalable value later.

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Here's my, my parting question for you is think about the most insane thing that you think

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everyone would jump at, specifically the most qualified versions of your customers, the best

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ICPs or the best avatar you have. Then actually write down how much you think it would cost you

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in time and money to do that thing. And then a, either charge for that and pick a price that you

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would do that word makes sense or b, choose to give it away for free only for the people who are

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absolutely insane. And I think that if you actually walk through this process with your team,

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you guys can listen to this together, whatever, there's an unlock there where there's unbelievable

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amounts of money that are just sitting waiting for you. The amount of personal trainers, physical

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therapists, carpractors, dentists, whatever, roofers who there is a version of a product that

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way more people would want, but no one just does the math because they immediately write it off.

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And that money is just sitting there waiting to be made for someone who's willing to do just a

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little bit more work.