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When they let us go back to business and open our doors

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You're going to open your doors and I think a lot a lot fewer people are gonna come back than you think

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Welcome to the gym secrets podcast where you talk about how to get more customers how to make more per customer and how to keep them longer

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And the many failures and lessons that we have learned along the way

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I hope you enjoy and subscribe good morning everyone have one day

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Hope you guys are had a good restful weekend or maybe not hope you were not resting at all into selling tons of people on our

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Fitness over the weekend and hopefully you were but if you were not then this message is for you

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So I'm calling this deal shit moment. I was having a conversation with a friend of mine

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Who's in the same space as us and he was talking to me about some of the beliefs that he's getting over the phone

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Some of the gym owners that he's talking to etc. And it was kind of interesting

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Because he was saying that you know these things change week to week

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But he said right now everyone's in denial phase he said right now they're in the phase of

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I'm gonna hold out. I think I can wait a couple more weeks

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For this to be over and I guess I'm here to say that I don't think that's gonna work out for you

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And here's here's why I don't think sitting and waiting is going to work out for you and hoping that

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When you open your gym, it's gonna work out

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I'm calling this the oh shit moment because right now. I think that there's still a certain sense of hope, right?

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I think that when they turn the lights back on when they turn the economy back on when they let gyms back

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Which by the way will be last, but when they let us go back to business and open our doors

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You're going to open your doors, and I think a lot a lot fewer people are gonna come back than you think

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And I think that what's gonna happen is gonna be a slower recovery than most people anticipate because people are still weary etc

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And I think some people will just like always

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Like there's a reason the on-demand economy is the on-demand economy, right?

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Everyone thought that people I was literally is so funny

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I had an internet troll yesterday or two days ago who commented on an ad and literally was just saying stupid things

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Like stupid like trying to be smart, but saying stupid things

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And he was like as soon as online fitness as soon as the gyms will back up all this online fitness stuff is gonna go away and I was like

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Really you think that people are just going to choose a less convenient option after they come back

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He's like well people really value the in-person, you know blah blah blah, right?

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People said the exact same thing about blockbuster against

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Netflix they're like the CEO is a blockbuster because it's so easy to rationalize our

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Like human beings don't want to think of back-case scenarios, and so we rationalize that we don't need to change, right?

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and so

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Blockbuster executives when they're like hey are you concerned about this online streaming stuff?

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They were like no people will always value

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Making a night making an evening going and picking it, you know picking out their movie walking inside and getting their candy

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Like it's become an experience, and so we think that people will continue to value this experience

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Guess what they were fucking wrong people would rather just click on the couch and do nothing, right?

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Is the experience of being at your couch better than the experience of shopping at blockbuster?

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I would say no, I've I really miss blockbuster a lot of times

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But I didn't miss enough to not use Netflix or use Netflix way more, right?

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And so the reality is that people will always choose their convenience and I think what happened very like recently or currently right now is that

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A huge piece of the marketplace that never otherwise would have tried online training or maybe would have in the next decade

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It took all of the remote services and dragged it 10 years into the future in terms of mass adoption. It was forced adoption

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And so I think a large percentage of people are going to say a larger than most homeowners anticipate are gonna stay in a remote setting

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Right, I think a lot of people are still like their jobs. Here's the others

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Oh shit moment is that people some of the companies that did layoffs may not rehire everyone

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Right because the demand is not going to be what it was at the single greatest moment in economic history

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You know, I mean like the best economy ever that happened before this and so

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Just like the oh shit moment is going to be when you turn the lights on and people don't show up, right?

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Which transparently will be great for me because I'm just gonna mark the shit out of the gyms

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That want to work with us because like that will be when marketing is more important than ever because you're going to have to

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Differentiate and get your name out there more than anyone else's right

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but

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Let's rewind the clock real quick. What do you need to do now right? What do you need to do now because the oh shit moment will come now

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Some people have have stronger communities than others, right?

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And I always want to put my disclaimer for good operators, right? If you're an amazing operator

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Do you haven't lost anyone then you'll probably recover better than people who have lost people right because you have a stronger community

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You have more bought in coaches you have better culture, etc. Right?

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But what should you do now?

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So it is my belief and just looking at the math. I'm gonna do this big presentation for Jim Lawrence

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Don't worry. I did a huge statistical model looking at

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The difference between ROI on remote versus ROI in person and

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The question is whether or not you want to be a business owner or a gym owner and that's a very real question like super super

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Real that's a personal question, right?

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But if you're in this to maximize making money because I've had tons of gyms who flew out during our VIP days and said

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Alex owner making money dollars a year and I said it's not gonna happen in one gym, right now

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Talking heads of gurus will be like you can totally like show me the fucking bank statement

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All right, and then I'll and then I'll believe you right, but no

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I like it's not from one facility unless you have a massive

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Massive facility and typically group training

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Purse training set will be only a piece of a part of that right like if you have six thousand members paying a hundred dollars a month

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Like lifetime then sure you can make a million dollars a year, right?

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But most people didn't invest five million dollars into their build out right so it's understanding relative scope

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Okay, so in my belief there's no way better than right now to for the best operators to be able to build a million dollar income

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business two three four million dollar top line business because

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One we're we're marketing a 25 mile radius and seeing zero degrees in sales percentages. All right number one

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Number two our remote gyms right now are closing a higher percentage of leads than they did in person

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That's a function of one major thing is that they're getting 40% of their leads on to it into a sales conversation compared to

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20% you know, whatever they were doing before all right, so they have twice as many at bats

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And so even if they're not as good on the phone

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They're not twice as bad over the phone right and so they're a little if you look at right now the average closing percentage to 29%

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So they're closing 29% over the phone. They were closing 42% in person all right

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But if you get twice as many at bats you actually still net more sales and so number one

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You can have a bigger geographic radius so the many people that I've rocked to it's like I want to have a bigger impact

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Here's how you have a bigger impact you can go remote and help people are not in your neighborhood number two

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Lead costs are cheaper not because of the ads the add impressions and stuff because that's temporary right

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We've already seen a go back to normal so the at the cost per impression is has gone a hundred percent back to more normal since two or three weeks ago

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All right people are advertising you

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But it's because when you draw from bigger radius you get cheaper leads. That's just period if you run an ad nationally

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It's just like challenge or whatever you'll get you know 25 cent leads the issue is how do you create trust?

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How do you create a sale or trust worthy environment for a lead to opt in and then buy something in the first phone call right and

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That's we're having I would consider like the semi-local appeal

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Automatically gives you gives you one or two trust points in your direction, which is allowing us to make sales on these first calls

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But if we're looking at it purely from a math perspective, which I would urge you to be a business owner and on a gym owner for the moment

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Right now our guys are essentially breaking even on the first transaction right now they're used to

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making two to one three to one four to one etc on their first transaction right but

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You're limited by your your capacity to fulfill in terms of how many people you can have at each time

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You're limited by your lead flow because let's be real like lead flow of a 25 mile radius is is always going to be higher and cheaper than in a

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5 mile radius because it's quadratic right so if you have a 5 mile radius and then you go from 5 to 10

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You didn't double the amount of people that you saw you pide it right so 3.14 whatever the math is but it's based like

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Let me put in layman's terms if you have a 12 inch pizza and you have a 24 inch pizza a 24 inch pizza is not twice as big as a 12 inch pizza

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You can fit like four 12 inch pieces inside of a 24 inch pizza because that's how circles work with with with quadratic expansion but anyways

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Hey if you're a return listener and you have not rated or reviewed the show

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I want you to know that you should feel absolutely terrible about yourself and everything else in the world

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I'm kidding

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But it would mean the absolute words of me if you guys would go ahead and do that you don't even have to pause to show you

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Keep listening and you can just do it with your thumb right now

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It'll take you less than 60 seconds and like I said the only way that podcast grows through word of mouth

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And this is you joining hands with me and helping as many entrepreneurs as a possible can because no one is coming to save us

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It's just us all right, so please go do that now and let's get back to the show

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And so when you go to a 25 mile radius you're talking 10 times

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You know, I mean the amount of people that you would be reaching otherwise or 20 or 50 or whatever the math is and so

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Because of that you can have a much bigger reach help more people

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Can see like anybody who's ever started with lead flow that doesn't have to happen anymore

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Like you don't have to start with lead flow anymore because it's literally enormous and you pretty much can always get lead flow if your target

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It's big enough all right, and so putting all these things together

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Cheaper leads bigger geographic radius

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Consistent lead generation a consistent 11% of leads closed

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Which is what we're seeing right now, which is higher than most people doing person breaking even on the front end and having an 80%

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Gross margin on the back end like you're talking about spending you know right now if you spend $1500

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You'll make $6,000 in front end revenue in 30 days. That's what the math is right. That's the average

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That's the average

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Okay

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$1500 at $6,600 is the actual number of up front cash in the first 30 days for an online business

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Do you know me people have tried to start an online business do you have any online business gurus?

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There are and the reason they don't have an agency set up or whatever is because they can't guarantee an outcome

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Right, they only tow the one or two testimonials that they have of the hundreds of students they have all right

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I'm giving you the average numbers

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average

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For online so if you wanted to make a six-figure income all right, we'll take you 30 days to build a recurring revenue stream if you spent

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If you spent $1500 it would take if you spent $1500 you close 30 39%

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So let's just bump it to make it conservative so that if you spent $2,200 an at spend over the first 30 days

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You'd be able to have 50 people in your online remote

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business

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After you lost 40% for not going into continuity all right, so I'm accounting for that that you only convert 60% into continuity at 200 bucks a month

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All right, that's a $10,000 a month business

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Ramon you can do it in 30 days

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Like averages if you're average you can do it in 30 days right now

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And so the big question that you have to ask is one in my holding out

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For what's going to happen that I don't know about because you don't know it's gonna have I don't either

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That's just my guess but like you don't know what's gonna happen

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But what I can't tell you is the opportunity is there and so in the next 30 days in the next 60 days

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If you wanted to build yourself a six-figure or multi-six figure online income you could do it

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I know that a lot of my generals won't do that they're gonna go back to the gyms and that's fine

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I'm here to serve I'm here to provide whatever value the community that I have asked for

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But if I were an enterprising motherfucker, which I am I would be strongly considering this

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It has been very difficult for me to not throw my hat back into the ring

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And start selling fitness at large because when I see those types of numbers in terms of acquisition

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I was like hmm

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How many sales guys we got and I was like I wonder if I was like I wonder if there's a bunch of gym owners

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You went out of business so I could just hire themselves people

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Because when I see that kind of stuff

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Three to one four to one up front

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You know what I mean 10 to one at 30 days 10 to one at 60 days

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60 days like in gym lunch I lose money the first 30 to 60 days

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Right and like I've just I just know the math game right

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I just want to make decisions with math if you were able to make decisions with math right now

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And not let your emotions and not let your fear and not let your discomfort around learning a new skill

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Which is selling over the phone because it's the only thing you have to do

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That's it as long as you acquire that skill set which by the way will set you up better for when you get back to the gym

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Because if you can sell over the phone you convert a high percentage of leads always right

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If you can just learn that skill you can have in one business

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Simple as that right now and I hope and I think my hunch is

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That that buying me every will not change people will be now the mass market has been introduced to what online training is

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Like most people don't even know what it was now they know what it is all right

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And so that like you're understanding how big of a deal it is for them to even recognize that industry

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All right

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And so one people will now know what online training is number two

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They will be comfortable more comfortable buying in a remote setting here. I appreciate over the phone

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Yeah, this is after the lights get turned back on because you're like

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Well, I don't want to change things you know temper early because something you know when what happens when you go later

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What if you have a business that just cash flows later and then you have your gym because many people like

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I won't even get into it

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But over the phone you would just say yeah, you know when COVID happened

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We started doing our our first consults over the phone and it ended up just being more convenient for people

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So we just stuck with it anyways, so what's your name? Why'd you click on the ad?

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Right like you can just preface the the sale and then everything else flows like normal

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Right because this is given us the biggest reason of all time the biggest why am I remote?

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Why are you doing this over the phone?

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Why are we doing this online? It has now given everyone permission to have that reason that we never had before

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Right and educated like thank you to the government for educating all consumers on online and remote setting fitness

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Right, thank you to the news. Thank you to everybody for helping us out. All right, so I say this to say

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I think that

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For everyone who's who's holding out and waiting. I don't think that's a smart decision

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Um, I don't want to be right, but I think I probably will be

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Um, I think a lot of people are in front of the lights back on and a lot of people aren't gonna come back

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Right, I think of this like a vacation. It's like all these people are like, you know what actually

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I'm I'm gonna keep doing things at home or you know

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It's actually kind of more convenient for me to just kind of do it on my own schedule

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Instead of having to go there and come back shower all that stuff

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There's just kind of easier for me because convenience and speed always win with humans

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Always you have to always bet on convenience because we are lazy

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Right, and especially when it comes to fitness. All right, and so it's like well

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That's why and that's why many people can't market outside of five more radius because people are too lazy to drive further

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Right, they're too lazy. You're like, but our gym's so great. It's like yeah, but they're gonna choose a shit

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Your gym that's closer to them

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Just being real right and so if you can take the service to them

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Which we now have the opportunity to learn the skill set to do that you can by the time this thing turns back on

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Probably have more recurring profit profit income than you did before this

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But it's for the people who want to win and who want to take action otherwise if you're just gonna wait

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Totally cool will help you when you want to come back because we do that too

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But that's just my that's my two cents right now

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And I know that whenever I talk about online it's always polarizing

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But I have a really hard time not speaking my mind about something that I think is more profitable

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And I think it's lower risk and I think in the post corona economy

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The businesses that will win are the ones that have lower overhead and have higher margins

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And have a higher ability to reach customers where they're at and all of those boxes get checked

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And then you get all the added bonus benefits that I said earlier

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Virtually unlimited lead flow cheaper leads bigger radius

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Higher profit margin you get all of those things on top of everything I said so anyways. Don't let the shit moment happen to you

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Take action now

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Start selling remote. I think it is it is incredibly incredibly incredibly awesome right now

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And you should get it. Bye. Keeping great. Catch you soon