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Everyone, happy Tuesday. Hope you guys are having a great day.

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If you're consuming this via podcast, then I hope you're having a great day too.

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I'm laughing because I think I'm almost more excited about this because of

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breaking content rules and making two pieces of content within two hours or one another.

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But first one was scheduled. This one I was feeling.

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And so I think that you will feel this too.

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So the new recurring revenue model and how we have less than 1% turn.

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So I'm going to give you something that's just a massive secret of ours that I was

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debating even saying for fear of people using it against us.

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But that would be scarcity mindset. So I'm not going to do that.

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So here's how we would achieve less than 1% share.

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And this is what some of the big players in the space are basically showing.

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And so fundamentally what happens most times that when people have recurring revenue models,

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their goal is to get the acquisition, sign someone up on the recurring,

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and then pray that they pay until or pray that they stay prey and pay.

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Until they die. That's the goal.

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It's like, okay, I got you now just like don't like don't email them,

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don't text them, don't remind them that they're being built.

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That's the that's the thought.

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And that's what most people do.

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And it's silly and it's dumb.

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And that's why most people don't have really good recurring revenue models.

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They constantly have this revolving door that they're always fighting against.

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So what is it that Netflix is doing?

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What is what is some of the stuff that we have modeled off?

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To have less than 1% share.

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So in legacy, which is our highest in program,

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people pay $3,200 a month, maybe more than that,

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for us to not give them ads.

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So we don't run anyone's ads.

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We are not an agency.

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And despite that, we have less than 1% share.

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So less than 1% right now,

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we have over 500 gyms that are in that level.

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Less than 1% leave.

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How are we able to do that?

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And I can tell you it's not by doing the work that we're doing.

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And I can tell you it's not by doing the recurring revenue model that

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our forefathers taught to us, right?

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Which is just like, hope, you know, pray that they stay and pay.

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It's actually a reverse model.

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And so in the internet marketing space,

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there's something called a launch model, right?

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And so a launch model is where people, you know,

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you have a customer base, right?

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You have a list of some sort.

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And you have their attention.

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You spend, you know, you spend a month or two,

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giving content, goodwill, whatever, right?

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And then after a certain point,

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then you start to do some sort of like,

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hey, we got this new thing coming out.

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It's going to be awesome.

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And then drum up a whole bunch of marketing and hype.

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And then they sell.

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And then they close the cart.

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And then boom, nothing.

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Knowing come again, right?

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So they have to start it all over again.

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And so Russell even talks about this as part of his story

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to how he decided if he wanted to get into a recurring revenue model, right?

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Here's where it gets really interesting.

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I believe fundamentally,

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so this is a writer downer, for all 18 of you who decided,

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come on.

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Fundamentally, the reason that our recurring revenue model

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has less than 1% turn is because we treat it like a launch model.

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We treat our recurring revenue model like a launch model.

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That is why we have less than 1% turn.

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Now, what that means is you have guaranteed

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and nothing is guaranteed because you're always in a week to week

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a day-to-day relationship with your customers.

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And you think that you're guaranteed because someone is on auto

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like auto subscribe, or whatever you want to call it, auto debit.

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Then you are fooling yourself and you are setting yourself up to lose.

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But you have to assume that that customer every single month

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has to sell themselves on why they should continue to pay you, right?

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And so despite the fact that it's recurring,

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it's recurring payments,

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but it's also recurring effort.

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And that's where most businesses fail.

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They're not actually doing a recurring amount of effort for what they're providing.

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They're like, well, I'll give you a portal.

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You have access to it.

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Congratulations.

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You can continue to pay me, right?

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No, what happens is you have to keep making new stuff just like a launch model, right?

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Where you provide content, you provide goodwill, right?

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And then you still do the same marketing play and hype

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and get everyone excited and then you make something that's amazing, right?

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And then you do it again next month, right?

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The only difference is people will continue to stay and pay,

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provided the thing meets the promise that you made.

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And so that's where launch and recurring models actually are the same thing, right?

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And most people just think that when you get recurring models, you can get lazy,

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but I promise you that's not the case, right?

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You have to do just as much stuff if you want to do it, right?

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Here's a great example for you,

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because I was thinking about this while I was not in the bathroom.

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Sorry.

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But who's got the best recurring game out there?

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Netflix, right?

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Netflix has every single, like Netflix or Amazon Prime, arguably, you see either one,

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but I'm going to use Netflix for this again.

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So Netflix has the best recurring revenue game on the market, okay?

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Every single household, every single person to pay $10.99 or $11.99,

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or whatever they're paying now, right?

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Now, they have a huge stock pile of stuff.

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No one could ever go through all of it, right?

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I mean, right now you literally couldn't get through it.

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If you spend the rest of your time watching Netflix.

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So, why do they make new stuff if they already have people in recurring?

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Because they figured it out.

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You have to make new stuff on a regular basis even,

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or especially if you have recurring customers, because you have to continue

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to sell them on the fact that they should still be with you, right?

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And a follow-up or a corollary to that is that if you don't create new stuff for your customers,

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then they will assume that the business is no longer active or engaged

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or the business owner is no longer engaged and it's no longer growing.

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And then at whatever point in different customers go through different speeds

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or it takes different period of time, right?

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For them to then say, I think I've gotten everything I'm going to get from this,

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I'm going to move on.

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And the reality is that if you have not created new stuff, they're right.

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They have gotten everything that they're going to get from you, and they should move on.

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And so, if you want to hack the recurring algorithm model,

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and you want to see, like, the difference between 5% turn and 1% turn is 5x.

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It's not 4%, it's 5 times the customer value.

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Talk about how you're going to acquire customers more profitably,

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keep them and never lose them.

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How do you do that?

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So, like, the amount of effort that everyone puts into marketing, right?

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If I could say, hey, you can get 5 times the ticket price from someone

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by taking your effort and putting into making new stuff for them

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that, from all these people who have said they're already going to pay you,

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the best people in the world, the awesomeness people in the world,

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the people who you have the highest potential likelihood of acquiring more money from

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or the people who've already given you their information and gone on subscription, right?

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And so, actually, make amazing stuff and do it on a regular basis.

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The recurring revenue model and the launch model are the same.

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And the people who get that and don't get lazy are the ones who will win.

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And the good news for all of us is that most people are lazy.

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And so, we have this gigantic opportunity to disrupt every single marketplace

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you are in or that I am in by simply providing stuff on a regular basis

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and showing that the business is not stagnant, that the business owner is engaged,

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and that you are actively trying to solve their problems.

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And here's the cool thing.

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Two awesome things about this.

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One, if you're constantly trying to make new stuff,

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you are constantly engaging with your existing customer base.

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So, you have a communication cycle.

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The more communication you have with someone, the more affinity they have for you.

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The people that you talk to the most in your life,

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you probably like the most in your life, right?

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Most people, I talk the most out of every human being on earth to Leila.

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I also like her the most out of every human being on earth, right?

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You're probably the same way.

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Hopefully, right?

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And so, the more communication you would have someone, the more likely they are to like you.

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And you want, like, everyone's like, how do I get known, like, interested?

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Well, there's how you get known.

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Like, they already do know you.

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They'll like you more with the amount of communication and they'll trust you if you keep your promises.

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That's how you do it, right?

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Right?

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So, man, I had this great point that I was going to make and I totally lost it.

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But anyways, to wrap up the whole record, essentially, you can point camera where it was.

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But anyway, to wrap this up for everyone, if you want you to hack this,

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you have to understand that growth is going to be part of the game.

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And the customer needs to feel like, oh, that's what it was, the two things.

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You're going to be engaged with the customers more.

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And then the side benefit is that once you're engaging with them,

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you're understanding their needs, which means you understand your customer better than everyone else,

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because you're actually talking to them crazy concepts, right?

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And then you know all of the problems they have, which means that you can write better marketing.

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You can have better creative, which helps you acquire more customers.

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And then beyond that, right, when you have that, then you can actually create things that solve problems.

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I cannot tell you the amount of times people message me cold and say,

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I could solve so many of your, so many problems for your gym owners.

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I have this great opportunity for you.

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I'm like, really?

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How many gym owners have you talked to?

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None.

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Or one.

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You know what I mean?

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And so, I mean, I got, I got approached the other day about,

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Aimos and Asian quick break just to let you know that we've been starting to post on LinkedIn

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and want to connect with you.

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All right, so send me a connection request and note letting me know that you listen to the show.

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And I will accept it.

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There's anyone you think that we should be connected with,

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tag them in one of my or layless posts.

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And I will give you all the love in the world.

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All right, so let's get back to the show.

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About a product that someone it's been like a year and a ton of money developing a software for.

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And they'd never asked me what we needed.

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And then I was like, well, it doesn't do this.

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And that's the only way that I would use it.

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And then nothing.

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Right?

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Simple stuff.

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But no one actually asked.

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So if you ask your customers what they want, you engage with them.

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They like you more.

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You have better mark.

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You have better knowledge of them.

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So you can write marketing for them.

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And then you actually make stuff that they actually want.

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Now, the second piece of why this is awesome is that once you have a list,

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a menu of all the problems that your customers have,

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then you go ahead and make stuff.

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And you give them the pipeline of all the things that are coming out next.

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Right?

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And so what does that do?

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It's future-paces people.

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It gives people the opportunity to see what is coming.

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Right?

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And so for example, let's say that I had, so right now,

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I'll give you an idea of our pipeline for legacy.

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So if you're not in legacy, this is what it is.

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We have Instagram, new Instagram ads, new Instagram story ads that are in beta right now,

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which means that we test, we spend like 30 grand, 40 grand, testing in 20 or so markets

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to make sure that we have winners on both those platforms.

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And then I will roll that out.

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That'll be the first one.

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The second one will be we're doing a whole new, we're releasing a whole new set of ads for Facebook ads

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because we're focusing a little more on acquisition for our guys.

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And then we also have Snapchat ads that are getting revamps because I've actually tested them

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to work great, but I want to make sure they work in all the markets that we have.

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And then that will be six weeks out, right?

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And so if you're a gym owner and you're in legacy, you know what's coming, right?

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And so let's say even that you were like, you know what?

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I'm not that into, I mean, I don't know why you would say this, but I'm just saying if you were,

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you were like, I'm not that into Instagram and Instagram stories, but Snapchat sounds amazing, right?

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Someone will hold on and stay for the thing that they know is coming because they know the value

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that it will provide will be foreign excess of the two months they got built versus one, right?

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Now, how do I wrap this up for like, you're like, cool, Alex, I get how your business is getting

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like less than one percent turned good for you.

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Nice stash, right?

240
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No one cares.

241
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So how do you use that concept and make more money with the gym, right?

242
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Make new stuff for your customers.

243
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Take the exact same template.

244
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Ask them, what is the thing that you were struggling the most with?

245
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What is it?

246
00:12:08.440 --> 00:12:10.440
What is it that's getting in the way of your nutrition?

247
00:12:10.440 --> 00:12:12.440
What is it that's getting the way of you getting to the workouts?

248
00:12:12.440 --> 00:12:15.440
What is it getting in the way of you staying motivated?

249
00:12:15.440 --> 00:12:17.440
Why can't you stay weekend, week out?

250
00:12:17.440 --> 00:12:18.440
What are the obstacles?

251
00:12:18.440 --> 00:12:20.440
And then they will tell you.

252
00:12:20.440 --> 00:12:26.440
And then all you have to do is follow the same process of like, now I have all of the problems.

253
00:12:26.440 --> 00:12:30.440
And then you probably, like, you probably have a few solutions already.

254
00:12:30.440 --> 00:12:33.440
You probably have them and you didn't even give them, right?

255
00:12:33.440 --> 00:12:36.440
We're in this like total, like, I've given every solution that I can think of.

256
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And now we're just innovating.

257
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And that's why, you know, all of our trips are on the forefront of, of the marketplaces

258
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because they're finding out the new new.

259
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What's working right now?

260
00:12:44.440 --> 00:12:48.440
But for you, the good news is that body hasn't changed very much, right?

261
00:12:48.440 --> 00:12:53.440
Like the marketing landscape changes constantly, but bodies haven't changed in 2000 years.

262
00:12:53.440 --> 00:12:55.440
But, and psychology hasn't either.

263
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But you can still solve problems for your people and they see that you're trying, right?

264
00:13:00.440 --> 00:13:04.440
And if you actually are trying and putting an earnest effort in, right?

265
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They can appreciate that because they, like, people, I honestly think people care more about intention.

266
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Well, they care about the result, too.

267
00:13:11.440 --> 00:13:17.440
But like, you, you gain some leeway by showing that you care, which you should, right?

268
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It's really hard to do all these things and not care.

269
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Side note.

270
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So if you don't care about your customers or doing any of this stuff, then you might be in the long distance.

271
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But if you do like your customers, then you should want to solve their problems.

272
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And this process that I just outlined is the secret to getting less than one percent sure.

273
00:13:33.440 --> 00:13:35.440
Would you like to 5x the revenue of your gym?

274
00:13:35.440 --> 00:13:38.440
Would you like to 5x the lifetime value of your customer?

275
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Cool.

276
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Ask them the next problem that you can solve.

277
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Get all of them.

278
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Consolidate them.

279
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Figure out which ones you think that you can solve the best.

280
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Wait.

281
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Make the solution.

282
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Give it to the ones who are struggling the most.

283
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Not the ones who are doing the best with it.

284
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But the ones who said, I struggle with emotional eating.

285
00:13:56.440 --> 00:13:57.440
Cool.

286
00:13:57.440 --> 00:14:01.440
Here's what Susan Sarah and Jake did.

287
00:14:01.440 --> 00:14:06.440
When they struggled with emotional eating and overcame it, let's take that.

288
00:14:06.440 --> 00:14:11.440
And let's give it to Jessica, Laura, and Lily.

289
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I don't know.

290
00:14:12.440 --> 00:14:13.440
I always had to think of three names.

291
00:14:13.440 --> 00:14:14.440
Doesn't have to be women.

292
00:14:14.440 --> 00:14:15.440
Not all of them.

293
00:14:15.440 --> 00:14:16.440
It could be all guys.

294
00:14:16.440 --> 00:14:17.440
Those could be all guys names for all of you.

295
00:14:17.440 --> 00:14:18.440
Who knows?

296
00:14:18.440 --> 00:14:20.440
You know, it's a new world.

297
00:14:20.440 --> 00:14:22.440
And give it to them.

298
00:14:22.440 --> 00:14:23.440
And then see if it works.

299
00:14:23.440 --> 00:14:27.440
Don't give it to your customers unless you know that the solution works.

300
00:14:27.440 --> 00:14:31.440
And then what will probably happen is you'll find out that there are some things that worked and some things that didn't.

301
00:14:31.440 --> 00:14:38.440
And then you will take that, fix it, and then give it back to them or give it to three new people who are struggling with emotional eating.

302
00:14:38.440 --> 00:14:40.440
I promise there's more than three of your gym, right?

303
00:14:40.440 --> 00:14:42.440
And see if that fixes them.

304
00:14:42.440 --> 00:14:45.440
And then if it does, now what happens?

305
00:14:45.440 --> 00:14:52.440
Now you have a whole bunch of people who appreciated the fact that you went above and beyond what you promised them to really solve their problem.

306
00:14:52.440 --> 00:14:54.440
And now you have customer resilience.

307
00:14:54.440 --> 00:15:01.440
We're telling everyone about how amazing you are and how like the fact that you went above and beyond to solve their problem.

308
00:15:01.440 --> 00:15:07.440
And then when you do produce the new product or if you want to say they get everyone excited about it for you.

309
00:15:07.440 --> 00:15:10.440
You don't need to hype it because they're going to say this changed my life.

310
00:15:10.440 --> 00:15:11.440
It was awesome.

311
00:15:11.440 --> 00:15:12.440
You guys will dig it, right?

312
00:15:12.440 --> 00:15:16.440
And everyone will believe that because they should it because it should change their life, right?

313
00:15:17.440 --> 00:15:22.440
And at this point, you're like, well, because one of the number of things is we don't we don't pitch it our event.

314
00:15:22.440 --> 00:15:27.440
So people are like, every single event I've ever been to, I always get pitched and you don't pitch at your events.

315
00:15:27.440 --> 00:15:30.440
I'm like, no, you're already a customer.

316
00:15:30.440 --> 00:15:34.440
And so I am pitching you, but you've already given me your payment information.

317
00:15:34.440 --> 00:15:40.440
And so I'm just continuing to sell you on why you should keep paying us and stay.

318
00:15:40.440 --> 00:15:46.440
And for those reasons, we have less than 1% change and we have, you know, the growth rate that we have and all that stuff.

319
00:15:46.440 --> 00:15:54.440
And so I hope that this made sense for you before you go because I know you got 40 some people under.

320
00:15:54.440 --> 00:15:59.440
Throw a like because if someone can understand this concept, this is like this is the keys to the castle.

321
00:15:59.440 --> 00:16:00.440
This is the keys to the kingdom.

322
00:16:00.440 --> 00:16:01.440
This is how you win.

323
00:16:01.440 --> 00:16:03.440
This how you win in this marketplace.

324
00:16:03.440 --> 00:16:04.440
This is what Netflix is doing.

325
00:16:04.440 --> 00:16:06.440
Look at the big players.

326
00:16:06.440 --> 00:16:08.440
Look at the people have explosive growth rates.

327
00:16:08.440 --> 00:16:11.440
Look at people who are retaining customers better than anyone else.

328
00:16:11.440 --> 00:16:14.440
If you can never lose a customer, you can pay whatever you want for acquisition.

329
00:16:14.440 --> 00:16:15.440
Real talk.

330
00:16:15.440 --> 00:16:18.440
The reason LBOs don't work is not that they don't work.

331
00:16:18.440 --> 00:16:19.440
What?

332
00:16:19.440 --> 00:16:21.440
I thought Alex was against LBOs.

333
00:16:21.440 --> 00:16:22.440
I'm not against LBOs.

334
00:16:22.440 --> 00:16:27.440
Most people have such low lifetime value of their customers that they can never recruit the cost.

335
00:16:27.440 --> 00:16:31.440
If your average customer is only paying you a few times and most gems that come to us

336
00:16:31.440 --> 00:16:36.440
don't have lifetime value of customers that are more than four or five months.

337
00:16:36.440 --> 00:16:39.440
That's why they need a different acquisition system.

338
00:16:39.440 --> 00:16:44.440
If you have a superior acquisition system and you have the lifetime value, then you become a super gem.

339
00:16:44.440 --> 00:16:47.440
That's why we've been told these seven figure facilities.

340
00:16:47.440 --> 00:16:51.440
In the very beginning, you need whatever.

341
00:16:51.440 --> 00:16:53.440
I'm not going to dive down the acquisition hole.

342
00:16:53.440 --> 00:16:54.440
You should get the point.

343
00:16:54.440 --> 00:16:55.440
I hope this makes sense to you.

344
00:16:55.440 --> 00:16:56.440
This is the secret.

345
00:16:56.440 --> 00:16:57.440
This is how you do it.

346
00:16:57.440 --> 00:17:02.440
If you don't have this process in place of continuing to mine your customers to keep them engaged

347
00:17:02.440 --> 00:17:07.440
to show them that you care that you should, then you're leaving a lot of money on the table.

348
00:17:07.440 --> 00:17:14.440
The job of serving customers gets way more fun when you talk to them and actually solve their problems.

349
00:17:14.440 --> 00:17:17.440
They know that you're trying to do that too.

350
00:17:17.440 --> 00:17:20.440
They also see the things that you have in the pipeline.

351
00:17:20.440 --> 00:17:22.440
As entrepreneurs, we like building things.

352
00:17:22.440 --> 00:17:27.440
What a better way to build stuff than build stuff for the people who are paying you already.

353
00:17:27.440 --> 00:17:29.440
Then you get word of mouth because they tell your friends.

354
00:17:29.440 --> 00:17:31.440
They're like, no, it's not like any other gym I've ever been to.

355
00:17:31.440 --> 00:17:34.440
They're constantly coming out with new stuff.

356
00:17:34.440 --> 00:17:36.440
They're constantly trying to solve our problems.

357
00:17:36.440 --> 00:17:39.440
You don't hear that from people who are going to normal gyms.

358
00:17:39.440 --> 00:17:41.440
You want to sit yourself apart?

359
00:17:41.440 --> 00:17:43.440
That's how you do it.

360
00:17:43.440 --> 00:17:47.440
This was my second music concept for the day.

361
00:17:47.440 --> 00:17:49.440
This one was from the hard rather than the schedule.

362
00:17:49.440 --> 00:17:50.440
You can probably feel a difference.

363
00:17:50.440 --> 00:17:54.440
But anyways, toss a like up if you want to so that other gym owners can see it.

364
00:17:54.440 --> 00:17:59.440
So that Facebook thinks that this is a good post that people should actually watch.

365
00:17:59.440 --> 00:18:07.440
If you do care about the industry, then double thumbs and drop a comment for somebody in your gym or your trainers.

366
00:18:07.440 --> 00:18:09.440
And you can also, doesn't have to be you.

367
00:18:09.440 --> 00:18:10.440
You can leverage other people.

368
00:18:10.440 --> 00:18:14.440
I'm not running the legion betas, but I just oversee what the pipeline should look like.

369
00:18:14.440 --> 00:18:18.440
I'm not the one who's putting all the ads in the accounts and double checking and making all the creative.

370
00:18:18.440 --> 00:18:21.440
I have some oversight in terms of what I think is going to work best right now.

371
00:18:21.440 --> 00:18:22.440
But I'm not the one doing it.

372
00:18:22.440 --> 00:18:26.440
And so if you have a trainer who's like, man, I love making videos.

373
00:18:26.440 --> 00:18:28.440
Then you can be awesome.

374
00:18:28.440 --> 00:18:31.440
Go make videos around this.

375
00:18:31.440 --> 00:18:33.440
And then give it to the customers that's for it.

376
00:18:33.440 --> 00:18:35.440
And then have them get excited.

377
00:18:35.440 --> 00:18:36.440
You know what I mean?

378
00:18:36.440 --> 00:18:37.440
It doesn't have to be you.

379
00:18:37.440 --> 00:18:39.440
So if you're like, how can I have the time to do that?

380
00:18:39.440 --> 00:18:41.440
Ask some questions, doesn't take time.

381
00:18:41.440 --> 00:18:45.440
Thinking about the problems and coming up with potentially just doesn't take a lot of time.

382
00:18:45.440 --> 00:18:50.440
And then the execution you can always say enough to someone else who's passionate about it.

383
00:18:50.440 --> 00:18:51.440
Lots of love.

384
00:18:51.440 --> 00:18:52.440
Happy Tuesday.

385
00:18:52.440 --> 00:18:54.440
Taco Tuesday.

386
00:18:54.440 --> 00:18:55.440
Shout out a little.

387
00:18:55.440 --> 00:18:56.440
Well, if I mention.

388
00:18:56.440 --> 00:18:57.440
Anyways, have an awesome day.

389
00:18:57.440 --> 00:18:59.440
And I'll catch you guys soon.

390
00:18:59.440 --> 00:19:00.440
Double content Tuesday.

391
00:19:00.440 --> 00:19:01.440
Two-time Tuesday.

392
00:19:01.440 --> 00:19:02.440
All right.

393
00:19:02.440 --> 00:19:05.440
You