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That is what creates an enduring thing and that is what when you spend the extra time to make

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the product so good that people have to tell their friends about it. Then that's where you get

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the unending scale and also is where all the profit is, right?

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Welcome to the game where we talk about how to sell more stuff to more people in more ways and

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build businesses worth owning. I'm trying to build a billion dollar thing with acquisition.com.

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I always wish pesos, musk and buffet had documented their journey, so I'm doing it for the

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rest of us. Please share and enjoy. Right now, if you're not making the amount of money that you

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want to make, it's because the product that you have is not good enough and it's really hard to

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confront that fact, but if you really do and sit here, I can't tell you the amount of times I talk

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to entrepreneurs and they're like, man, if I just had more people, if more people would just find out

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about my product, then all my problems would be solved. But the reality is that if you have any

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amount of customers, then people already have found out about your product and for one reason or another,

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they have chosen not to tell anyone else about it and you have to sit with that for a second.

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You have to realize that people have found out about your product and they're not referring people

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and you have to ask why? Why are these people not sending me business? And so one of the,

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one of the first times I heard a statement that I really liked about this was from being Kennedy and he

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said, most small entrepreneurs try and get customers to make sales, bigger entrepreneurs try to make

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sales to get customers. And the difference is one person is all about trying to get to the money

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as fast as possible. What do I need to say to get this person say, yes, what do I need to say to

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get this person to buy? How do I get the money? The other way is how do I make some sort of exchange

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so that I can now create a long time relationship with this customer and continue to provide value

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over time? One has a compounding view and perspective on time and value and the other is short-sighted

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and I can tell you the difference between the people who are millionaires that I have that I'm

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friends with and the people who are billionaires that I am friends with. This is probably one of

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the most fundamental differences. And so I was talking to a friend of mine who's worth our

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rebellion and he was saying, he said, if it's not going to grow on its own over time, it's not worth

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doing. And I really sat with that for a second and it was like, if I, if you put in a one-time effort,

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like this is what, this is how people who are the ultra wealthy think. If you put one-time effort

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into something and it compounds over time, then that is an enterprise or product that they want

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to continue to invest in. On the flip side, if you have to consistently show up and consistently

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promote and consistently get out there and sell and sell and do all this stuff,

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then what ends up happening is that the product itself is not good enough, right? Because people

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in and of themselves are not referring business. And so let me, let me give you three questions that

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really changed and hopefully will alter your perspective like they did mind around product and

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service. And so the first is if I have an existing product or service and I were to make it 10

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times more expensive. So really think about the price over or you can say a hundred thousand

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dollars or a million dollars, whatever it is, right? Just huge number. And if that's how much I

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were charging for it, what would I need to do? What would the experience need to be? What would the

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product need to deliver in order for it to be worth that much? Hey guys, love that you're listening to

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the podcast. If you ever want to have the video version of this, which usually has more effects,

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more visuals, more graphs, you know, drawn out stuff, sometimes it can help hit the brain centers

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in different ways. You can check out my YouTube channel. It's absolutely free to check that out if

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that's what you are into. And if not, keep enjoying the show. What happens? You start thinking in a very

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different type of mindset about how much value you have to create, right? And so that is the first

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question that I ask. There's two more in the third one's my favorite. And I'll get to in a second.

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The second question I ask is if this product that I have cost one tenth as much as it does right now,

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but I had to make it better than it currently is, what would I need to do? What one time asks

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it's what I need to create that would consistently provide value that I could do at scale that could

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I could do profitably, right? So first question, if this were 10 times expensive or a hundred thousand

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or a million dollars is what I charge for my product, what would it need to be? What would the

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experience need to be? And what value would I need to deliver in order for it to be worth that much?

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The second question is if it were one tenth the cost, but I had to make it better than my current

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product or service. What else would I create or do or make in order to facilitate that outcome?

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And the third question, which is probably my favorite, which I think underpins the entire ideology

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that I'm hitting on here is if I had a business and I were only allowed to sell one more customer

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and the rest of the growth of my business had to come from that customer without me asking

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as in that that customer's experience was so remarkable, was so positive, was so amazing

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that they, they alone had to on their own volition, tell other people about my service,

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what would need to happen? What would need to happen to create that experience? And when thinking

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about all three of these product frames, I like them because they kind of hit on different aspects

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of the product. The first question, which is a hundred thousand or a million dollar question,

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hits on value, which is how do I create the most value in the product itself?

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The second question hits on the profit of the product because if it's one tenth the cost and I

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have to make it better, this means that I have to do high margin one time investment type things

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to make the entire product more valuable. So that hits on profit. So first is the value of the product,

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the second is the profit to me as a business owner. And the third question hits on the experience,

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which is what's the customer experience, which is everything else that surrounds the product that

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we're selling or service that we're selling. What is the experience that has to occur in order for

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this customer to become a raving fan that it's so good that they remark about it that cannot

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help themselves but remark about it. And what's interesting is that every super wealthy person that I

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know pretty much exclusively talks about products and usually they're really small people that I know

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only talk about promotion. And promotion should really only exist to get your product right and then

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once it is right, then you can juice it and then let it go and take care of itself. And the reason

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that it's so important, at least in my opinion, is that if you think about the six ways of getting

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customers, right? And if you don't know what those are, it's paid media, earned media. So paid

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media is advertising, right, in promotions. Earned media is following, right? If you have any kind

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of organic following. The third is through your contact lists, so people on your phone and your

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email list, instead of the you already own their contact information. The fourth is through manual

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app out. So that's DMs, cold emails, cold calls, cold all of that stuff where you reach out to people.

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The fifth is to affiliate, so partners who can promote your stuff. And the sixth, which is the most

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powerful. And the only one that compounds is word of mouth. So think about that for a second.

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Every of the other five ways of acquiring customers is not compounding. Those are linearly scaled,

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right? It means if you double the amount of outbound people you have, you double the amount of

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customers that you get. If you double your ad spend, you might be able to double the amount of

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customers you get. Sometimes it's less than that. But you get the idea. They scale relatively

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linearly, right? Whereas word of mouth referrals, which is the sixth way of getting customers,

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is the only one that compounds. It multiplies rather than is additive, all right? If you get two

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people to tell two people, and those people tell two people that it continues to compound, and that is

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what creates enterprise value, that is what creates an enduring thing. And that is what when you spend

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the extra time to make the product so good that people have to tell their friends about it,

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then that's where you get the unending scale. And also is where all the profit is, right?

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You don't have to worry about the churn as much because the product's so good. You don't have to

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worry about the negative reviews because the product's so good. You don't have to worry about

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customer badminton because instead they're telling their friends about how good you are. And

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this has been one of the shifts that has been most helpful for me. And honestly, when I look back

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on my own trajectory, how much I talk about promotion in the beginning of my career versus now,

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I talk so much more about people and products. And anyways, I wanted to share this with you because

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it was, I could tell you how good I am about this kind of stuff.

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Anyways, the real nuts of this is that everything that the ultra-wealthy do is compounding.

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It grows with time, we're time to cut an asset instead of a liability. And if everything you do,

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you have to go out and get more business, go out and get more business, go out and get more

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business, right? It means that it requires effort every single day, whereas if you put a lot of

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front end effort, which is the investment, which is the patience, right? To make the thing that

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much better in the beginning, then it will pay you dividends over time and most people skip that

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step because they just want to make the first sale. They're just trying to get a customer to make

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a sale rather than trying to make a sale to get a customer.