WEBVTT 1 00:00:00.000 --> 00:00:02.880 Hello, I'll tell you this one story real quick and then we'll get into it. 2 00:00:02.880 --> 00:00:08.560 So I had a guy a few months back and he was really excited to ask his question and he was like, 3 00:00:08.560 --> 00:00:10.280 hey, could you go over the closer framework? 4 00:00:10.280 --> 00:00:12.920 And I was like, what's your close rate, man? 5 00:00:12.920 --> 00:00:18.640 He was like 40%, and I was like, that's obviously not the constraint of your business. 6 00:00:18.640 --> 00:00:22.240 So you like traveled across the country, you did the first day, you came in the second 7 00:00:22.240 --> 00:00:25.360 day, and the one thing that you decided to ask was something that is not a problem in 8 00:00:25.360 --> 00:00:26.360 your business. 9 00:00:26.360 --> 00:00:31.720 I think it's really telling because a lot of us work on the things that we like and he 10 00:00:31.720 --> 00:00:33.800 just likes sales. 11 00:00:33.800 --> 00:00:36.920 But the reason that his business wasn't growing was not because it hit a lack of closing. 12 00:00:36.920 --> 00:00:40.000 It was because of other issues that he wasn't confronted. 13 00:00:40.000 --> 00:00:44.520 There's four big issues that I consistently see because I've now had a lot of conversations. 14 00:00:44.520 --> 00:00:47.360 These are strategic problems, not tactical ones. 15 00:00:47.360 --> 00:00:50.960 So it's not like how should I increase my shop rate, how should I increase the closing, 16 00:00:50.960 --> 00:00:52.760 how should I, you know, whatever. 17 00:00:52.760 --> 00:00:56.000 We're usually rock and hard play scenarios, meaning that you're stuck because there's 18 00:00:56.000 --> 00:00:59.600 this thing where on either side there's pain and so you just continue. 19 00:00:59.600 --> 00:01:02.880 And it's usually one a short term pain is one is long term pain. 20 00:01:02.880 --> 00:01:06.600 The first most common one is that you're mispriced. 21 00:01:06.600 --> 00:01:10.640 This is where you're like, okay, I'm at full capacity in my facility, but we're not making 22 00:01:10.640 --> 00:01:11.640 any money. 23 00:01:11.640 --> 00:01:14.320 But if I raise my prices, then I'm going to lose my customers. 24 00:01:14.320 --> 00:01:15.320 What do I do? 25 00:01:15.320 --> 00:01:17.960 It's like, well, if you continue, you don't make money. 26 00:01:17.960 --> 00:01:20.920 And if you raise your prices, there's another alternative where you don't make money, but 27 00:01:20.920 --> 00:01:23.040 then you will eventually make money. 28 00:01:23.040 --> 00:01:25.840 These are common rock and hard play scenarios. 29 00:01:25.840 --> 00:01:28.600 Close cousin of that is compensation. 30 00:01:28.600 --> 00:01:33.480 Is that I've got people on my team who I'm overpaying and my whole business models 31 00:01:33.480 --> 00:01:41.120 I give 50% of revenue to my therapists, okay, well, tough to make money when half of 32 00:01:41.120 --> 00:01:45.240 top line goes away, at least in a human capital based business. 33 00:01:45.240 --> 00:01:49.520 Well, if I tell them that I have to renegotiate comp, then I'm going to lose my therapist. 34 00:01:49.520 --> 00:01:53.120 And if I don't, I'm never going to grow this business rock and hard place. 35 00:01:53.120 --> 00:01:56.320 In each of these situations, you usually just have to deal with the fact that you're going 36 00:01:56.320 --> 00:01:59.840 to have some short-term pain, or you can just have the long-term pain of the fact that 37 00:01:59.840 --> 00:02:01.600 you never achieve your goals. 38 00:02:01.600 --> 00:02:04.560 We've been able to move relatively quickly through these because we encounter these problems 39 00:02:04.560 --> 00:02:07.480 too, because these are all problems of ignorance. 40 00:02:07.480 --> 00:02:11.160 As you did something, you did the best of your ability at the time, and then you learned 41 00:02:11.160 --> 00:02:14.880 some shit, and then you're like, oh, wow, that wasn't smart. 42 00:02:14.880 --> 00:02:18.200 But now you know, and that's the price of ignorance tax. 43 00:02:18.200 --> 00:02:21.120 It hurts a lot because you pay down the debt of not knowing. 44 00:02:21.120 --> 00:02:28.520 The next one is over expansion, which is we have some sort of internal need as entrepreneurs 45 00:02:28.520 --> 00:02:33.120 to continue to grow, and we define that by our top line growing, or by being close to 46 00:02:33.120 --> 00:02:37.000 some rival that we have, that we, for some reason, compare ourselves to that no one else 47 00:02:37.000 --> 00:02:38.480 knows or cares about. 48 00:02:38.480 --> 00:02:42.760 I was at one location, so I immediately go to two, and I'm just using locations because 49 00:02:42.760 --> 00:02:47.280 it's simple, but it could be even agency and you go from 10 clients to 100 clients, whatever. 50 00:02:47.280 --> 00:02:52.600 So by doing that, you overextend yourself, and so what happens is you advocate instead 51 00:02:52.600 --> 00:02:56.200 of delegate, and so by the way, you can know the difference because if you delegate, things 52 00:02:56.200 --> 00:02:57.200 keep going. 53 00:02:57.200 --> 00:02:59.800 If you advocate, it should get worse when you give it to somebody else. 54 00:02:59.800 --> 00:03:02.160 And so many of you advocate and don't delegate. 55 00:03:02.160 --> 00:03:05.200 Because of that, because it takes work to delegate, because you have to train someone, 56 00:03:05.200 --> 00:03:08.320 you have to get them up to speed, and that takes time and your impatient, and so you don't 57 00:03:08.320 --> 00:03:10.080 do it, and then you pay the price later. 58 00:03:10.080 --> 00:03:11.080 But now what do I have to do? 59 00:03:11.080 --> 00:03:14.160 Well, now I have to keep selling and marketing, but all the people that I haven't delivered 60 00:03:14.160 --> 00:03:16.200 because I scaled so much suck. 61 00:03:16.200 --> 00:03:19.240 But I have to keep selling and marketing, but then my reputation gets hurt because every 62 00:03:19.240 --> 00:03:22.440 single person who comes in says I suck, but I have to keep doing because I have to support 63 00:03:22.440 --> 00:03:24.440 the payroll, rock and hard place. 64 00:03:24.440 --> 00:03:27.240 A lot of these decisions is sometimes you have to take a step back so you can take two 65 00:03:27.240 --> 00:03:29.720 steps forward because there is no alternative. 66 00:03:29.720 --> 00:03:32.360 And sometimes that means you go through a lot of pain in the short term. 67 00:03:32.360 --> 00:03:37.120 This is why I often say that your lifestyle is your competitor's opportunity. 68 00:03:37.120 --> 00:03:40.480 And so if you can live on less so that you can be more offensive or more flexible within 69 00:03:40.480 --> 00:03:43.560 the business, it just gives you degrees of freedom. 70 00:03:43.600 --> 00:03:47.680 If you can cut revenue or cut profits so that you can reorganize the business to fix 71 00:03:47.680 --> 00:03:51.200 a strategic problem, it allows you to be more aggressive in the future. 72 00:03:51.200 --> 00:03:55.800 And then the last one is my favorite, of course, woman of the red dress. 73 00:03:55.800 --> 00:03:58.360 I have, I'm CEO of two businesses. 74 00:03:58.360 --> 00:04:02.240 I've got this amazing idea, and I've been doing this thing for seven years, but this 75 00:04:02.240 --> 00:04:04.640 thing sounds great because you only know the good stuff. 76 00:04:04.640 --> 00:04:05.800 You don't know the bad stuff. 77 00:04:05.800 --> 00:04:08.240 And so, you know, you meet the woman of the red dress and you're like, she's amazing. 78 00:04:08.240 --> 00:04:11.000 And then you're like, oh my God, she's a crazy ex-boyfriend, she's got chlamydia, like, 79 00:04:11.000 --> 00:04:12.000 oh my God, I didn't know that. 80 00:04:12.000 --> 00:04:14.040 But now I'm in bed with her and you're like, you're not, I have chlamydia too. 81 00:04:14.040 --> 00:04:15.040 And you're like, here we are. 82 00:04:15.040 --> 00:04:15.840 How did I get here? 83 00:04:15.840 --> 00:04:16.840 She seemed so great. 84 00:04:16.840 --> 00:04:18.480 I had a CFO for years. 85 00:04:18.480 --> 00:04:19.480 She retired. 86 00:04:19.480 --> 00:04:20.480 She was awesome. 87 00:04:20.480 --> 00:04:21.480 But she said, she's from the South. 88 00:04:21.480 --> 00:04:23.480 She was like, there's always shit. 89 00:04:23.480 --> 00:04:26.800 She's like, all businesses have shit. 90 00:04:26.800 --> 00:04:29.920 You just have to pick what type of problem you'd rather solve. 91 00:04:29.920 --> 00:04:33.720 There are eternal questions that are always impossible questions to answer correctly. 92 00:04:33.720 --> 00:04:34.720 Do I push or do I pivot? 93 00:04:34.720 --> 00:04:36.280 Do I need to keep pushing through this thing? 94 00:04:36.280 --> 00:04:37.920 Or is this one of those times where I need to pivot? 95 00:04:37.920 --> 00:04:41.400 Well, there's tons of stories of guys who kept pushing and then pivoted and then it worked. 96 00:04:41.400 --> 00:04:43.760 And there's tons of stories of guys who kept pushing and then kept pushing and then it 97 00:04:43.760 --> 00:04:44.760 worked. 98 00:04:44.760 --> 00:04:46.960 And so how do you know what's right for you? 99 00:04:46.960 --> 00:04:50.760 It does ladder up to what we originally started with, which is return on resources, which 100 00:04:50.760 --> 00:04:55.480 is given the resources that I currently have, what is the high probability of success. 101 00:04:55.480 --> 00:04:58.920 But that assumes that you have perfect information, which you never do. 102 00:04:58.920 --> 00:05:02.440 The answer to that is, you don't know and you try your best. 103 00:05:02.440 --> 00:05:04.520 So these are the four most common problems that I see. 104 00:05:04.520 --> 00:05:06.520 I'll probably highlight some of them as you guys ask them. 105 00:05:06.520 --> 00:05:07.520 But yeah, let's rock and roll. 106 00:05:07.520 --> 00:05:08.520 Who's got the first box? 107 00:05:08.600 --> 00:05:10.680 Yeah, so I've got a business. 108 00:05:10.680 --> 00:05:15.440 I was working with the guy who does econ management for Amazon stores, Walmart stores. 109 00:05:15.440 --> 00:05:16.760 So I was leading up his operations. 110 00:05:16.760 --> 00:05:21.240 Him and I started a side business doing a tax function and then also we built the software 111 00:05:21.240 --> 00:05:25.600 that runs his entire business, but like a separate, like a little shark with folks, big 112 00:05:25.600 --> 00:05:26.600 shark. 113 00:05:26.600 --> 00:05:32.840 So that business is going relatively well, we'll do about 1.1, 1.2 million this year. 114 00:05:32.840 --> 00:05:36.040 It's gotten to the point where we have these clients that come. 115 00:05:36.040 --> 00:05:40.120 I mean, anybody who signs up for his other business has to sign up for our business. 116 00:05:40.120 --> 00:05:42.600 So I don't need to advertise or market. 117 00:05:42.600 --> 00:05:46.000 I'm trying to figure out what's next, because right now we have this one channel partner. 118 00:05:46.000 --> 00:05:50.440 Anything after that business, Walmart, Amazon, change the game, we can get shut down pretty 119 00:05:50.440 --> 00:05:51.440 quick. 120 00:05:51.440 --> 00:05:56.480 So we're trying to figure out, do we focus on increasing revenue with our existing clients? 121 00:05:56.480 --> 00:06:01.160 We can, that's one strategy we could take, but that limits us with the one channel partner. 122 00:06:01.160 --> 00:06:07.360 Or do we start figuring out how do we take all of our excess capital and either partner 123 00:06:07.360 --> 00:06:12.440 with other people, create different apps, things we could sell to the Amazon seller marketplace 124 00:06:12.440 --> 00:06:15.920 as a whole, we're approved app developers now for Amazon as well. 125 00:06:15.920 --> 00:06:20.600 So there's a lot of different directions we can go and I'm stuck between increasing 126 00:06:20.600 --> 00:06:24.880 revenue with our existing clients and getting up a little more or figuring out other streams 127 00:06:24.880 --> 00:06:27.240 of revenue in case anything happens to that first one. 128 00:06:27.240 --> 00:06:28.960 I do neither of those. 129 00:06:28.960 --> 00:06:32.600 I mean, my favorite strategy is the world do more of what's working, which would be you 130 00:06:32.600 --> 00:06:34.360 have one channel partner. 131 00:06:34.360 --> 00:06:36.080 And so I would be attacking more channel partners. 132 00:06:36.080 --> 00:06:38.000 I wouldn't be adding more products. 133 00:06:38.000 --> 00:06:41.560 And if you already are a good profit margins within the business right now, yeah, about 134 00:06:41.560 --> 00:06:42.560 68 percent. 135 00:06:42.560 --> 00:06:43.560 Okay. 136 00:06:43.560 --> 00:06:44.560 So margins are good. 137 00:06:44.560 --> 00:06:50.240 So yeah, I would, I would be getting 10 more of the big sharks as the business model. 138 00:06:50.240 --> 00:06:52.840 So that means that you like fundamentally you have to crack an acquisition channel to 139 00:06:52.840 --> 00:06:53.840 get customers. 140 00:06:53.840 --> 00:06:56.720 And so you already know what the partnership model looks like when it's right. 141 00:06:56.880 --> 00:06:59.240 Now, I'm guessing that guy owns half of this business. 142 00:06:59.240 --> 00:07:00.240 Right. 143 00:07:00.240 --> 00:07:02.760 And so it's like, how do I make it compelling for everyone else? 144 00:07:02.760 --> 00:07:04.920 So you'll probably eat into your margins. 145 00:07:04.920 --> 00:07:09.240 But maybe just say I'll give you half of the revenue as an affiliate or 40 percent of 146 00:07:09.240 --> 00:07:11.800 the revenue that your customer generate and you have to do anything. 147 00:07:11.800 --> 00:07:12.800 You just make the intro. 148 00:07:12.800 --> 00:07:13.800 Sure. 149 00:07:13.800 --> 00:07:14.800 Now is it thought as well? 150 00:07:14.800 --> 00:07:15.800 Yeah. 151 00:07:15.800 --> 00:07:18.920 I would do in terms of like, so I think about these in bets of like what's the, what's 152 00:07:18.920 --> 00:07:20.480 the, what's the likelihood of success? 153 00:07:20.480 --> 00:07:24.920 And so building new products is a lot of zero to one, which is a lot of net new. 154 00:07:24.920 --> 00:07:27.480 You don't know if you're a product market fit, like you have product market, which is 155 00:07:27.480 --> 00:07:28.480 tough. 156 00:07:28.480 --> 00:07:29.480 And you have that. 157 00:07:29.480 --> 00:07:30.480 It's great. 158 00:07:30.480 --> 00:07:32.720 And then different acquisition channels like, well, you already know what partners 159 00:07:32.720 --> 00:07:33.720 just like. 160 00:07:33.720 --> 00:07:35.760 And so it's like, if I, if I want to take the next natural bet, it's like, how do I change 161 00:07:35.760 --> 00:07:40.480 as few variables as possible and take the bet that'll have the most upside. 162 00:07:40.480 --> 00:07:44.720 So you're getting 10 of these sharks with an affiliate model that makes sense, makes 163 00:07:44.720 --> 00:07:45.720 sense to me. 164 00:07:45.720 --> 00:07:49.160 And maybe you do a little phantom pool of like 10 percent that all of them get a tiny 165 00:07:49.160 --> 00:07:52.240 share of this proportionally amount of customers they send you said if you exit in the 166 00:07:52.240 --> 00:07:53.240 future, they get a slice. 167 00:07:53.240 --> 00:07:54.240 Sure. 168 00:07:55.240 --> 00:07:56.240 Cool. 169 00:07:56.240 --> 00:07:57.240 Thank you. 170 00:07:57.240 --> 00:07:58.240 Yeah, no worries. 171 00:07:58.240 --> 00:07:59.240 Hey, Alex right here. 172 00:07:59.240 --> 00:08:00.240 Sir, Alliance to Jetsu. 173 00:08:00.240 --> 00:08:03.720 I mentioned to you last night that we have 250 locations as a franchise model. 174 00:08:03.720 --> 00:08:04.720 Mm-hmm. 175 00:08:04.720 --> 00:08:08.840 I also own two of my own locations and I want to now open 50 with my franchise partner 176 00:08:08.840 --> 00:08:12.960 as opposed to just going after franchises, which is better for us to own locations. 177 00:08:12.960 --> 00:08:14.000 We talked about that. 178 00:08:14.000 --> 00:08:18.240 But you mentioned, hey, we bought out our, our franchises and one of your portfolios, 179 00:08:18.240 --> 00:08:19.240 I believe. 180 00:08:19.240 --> 00:08:20.240 Yeah. 181 00:08:20.240 --> 00:08:21.240 We've looked into that. 182 00:08:21.240 --> 00:08:25.880 But it just seems that there's kind of like a, um, a delusion to the value of those 183 00:08:25.880 --> 00:08:26.880 terms, right? 184 00:08:26.880 --> 00:08:31.760 So you go from most in pain to least in pain of the 250 that are open. 185 00:08:31.760 --> 00:08:32.760 Yeah. 186 00:08:32.760 --> 00:08:34.160 Number 250 worse for former. 187 00:08:34.160 --> 00:08:35.160 Yeah. 188 00:08:35.160 --> 00:08:36.160 I talked to him first. 189 00:08:36.160 --> 00:08:37.160 Got it. 190 00:08:37.160 --> 00:08:41.360 And then you just go to 249 and then 248 and 247 and 246, you just keep working with 191 00:08:41.360 --> 00:08:42.360 her. 192 00:08:42.360 --> 00:08:43.360 Got it. 193 00:08:43.360 --> 00:08:45.200 It's, it's coming from the perspective of like, we don't need to buy you out. 194 00:08:45.200 --> 00:08:48.560 But if you want us to take over this thing for you, I can take it over for you. 195 00:08:48.560 --> 00:08:52.280 And then you can just swallow them off because a lot of them, I would assume the bottom 196 00:08:52.280 --> 00:08:56.920 20% desperately regret the decision of being in business has nothing to do with the 197 00:08:56.920 --> 00:08:59.840 model, like bottom 20% for whatever reason, right? 198 00:08:59.840 --> 00:09:04.600 And so then you say, cool, well, I can relieve all of this pain for you immediately. 199 00:09:04.600 --> 00:09:07.960 And I'll take over all the liability releases and all the liability, the equipment and everything 200 00:09:07.960 --> 00:09:10.960 else that goes with that because you know that you know how to run the business better. 201 00:09:10.960 --> 00:09:13.080 And you might have to fire half the staff, but at least you don't have to like rebuild 202 00:09:13.080 --> 00:09:14.080 the facility. 203 00:09:14.080 --> 00:09:15.080 It's already to spec. 204 00:09:15.080 --> 00:09:18.520 And as long as you like the markets, because some of them we, we close down like, this 205 00:09:18.520 --> 00:09:23.200 is a market issue, local, come down, like some local markets just don't have enough 206 00:09:23.200 --> 00:09:24.200 to sustain. 207 00:09:24.200 --> 00:09:25.720 There's not enough that ideal avatar, whatever. 208 00:09:25.720 --> 00:09:28.680 As long as you don't think it's a market issue, and we think this should be overperforming 209 00:09:28.680 --> 00:09:31.640 and this is being mismanaged, those are the ones that are opportunities. 210 00:09:31.640 --> 00:09:32.640 Got it. 211 00:09:32.640 --> 00:09:33.640 Yeah. 212 00:09:33.640 --> 00:09:34.640 I would do that first. 213 00:09:34.640 --> 00:09:39.080 I would go mop up because I'll bet you out of 250, you can find 50 without even having 214 00:09:39.080 --> 00:09:41.680 to spend a dollar of opening it. 215 00:09:41.680 --> 00:09:42.680 Right. 216 00:09:42.680 --> 00:09:43.680 Just take over liabilities. 217 00:09:43.680 --> 00:09:45.920 Like if you take over a lot, so this is how you can talk through it with them, which 218 00:09:45.920 --> 00:09:49.760 is like, you have 300,000 dollars in liability, you have zero cash flow. 219 00:09:49.760 --> 00:09:53.040 I'm paying you 300,000 dollars in debt that I will take on. 220 00:09:53.040 --> 00:09:54.040 Right. 221 00:09:54.040 --> 00:09:57.960 And so that way it's not like, wait a second, this is like, this word is nothing. 222 00:09:57.960 --> 00:10:00.360 The opportunity was worth something, but you have no squandered it. 223 00:10:00.360 --> 00:10:01.720 And so we have debt. 224 00:10:01.720 --> 00:10:03.280 I'm willing to take that risk on. 225 00:10:03.280 --> 00:10:06.080 Because they love the sport still though, in this situation, they don't want to like 226 00:10:06.080 --> 00:10:08.360 necessarily walk away from their students, they still want to be there. 227 00:10:08.360 --> 00:10:13.160 So I guess how, from just a high level perspective, do you have any thoughts on how to even 228 00:10:13.160 --> 00:10:14.160 work through that frame? 229 00:10:14.160 --> 00:10:16.560 Mostly because they're going to sell authority in that world. 230 00:10:16.560 --> 00:10:21.200 So that's the walk away is like kind of a different conversation than like, I think what 231 00:10:21.200 --> 00:10:22.200 you dealt with. 232 00:10:22.200 --> 00:10:24.280 I think I know, I think I, yeah, I get where you're coming, because they're like the master 233 00:10:24.280 --> 00:10:25.280 sensei or whatever. 234 00:10:25.280 --> 00:10:26.280 Yeah, exactly. 235 00:10:26.280 --> 00:10:27.280 Yeah. 236 00:10:27.280 --> 00:10:28.280 So they do want that. 237 00:10:28.280 --> 00:10:30.600 Sorry to interrupt you, but they do want that like kind of relief that you're talking 238 00:10:30.600 --> 00:10:31.600 about. 239 00:10:31.600 --> 00:10:32.600 Yeah, they don't want to manage the business. 240 00:10:32.600 --> 00:10:33.600 They just want to like teach classes or whatever. 241 00:10:33.600 --> 00:10:34.600 Yeah. 242 00:10:34.600 --> 00:10:38.040 The thing is like, so this would be a test, honestly, because all the French that we have, 243 00:10:38.040 --> 00:10:40.440 like, they're not, they just on the location or whatever. 244 00:10:40.440 --> 00:10:45.040 I would go in and say like, I would test on one of them and be like in front of the staff. 245 00:10:45.040 --> 00:10:48.400 This guy has to get up and then I will get up so that everyone understands like, he's 246 00:10:48.400 --> 00:10:49.520 not the man anymore. 247 00:10:49.520 --> 00:10:51.280 I'm the man now. 248 00:10:51.280 --> 00:10:52.760 He just teaches classes. 249 00:10:52.760 --> 00:10:54.120 He has no authority. 250 00:10:54.120 --> 00:10:56.920 If your checks fucked up, he can't do shit. 251 00:10:56.920 --> 00:11:00.800 If you didn't, like if you want to know if you can take off, he can't do shit. 252 00:11:00.800 --> 00:11:05.320 Like it's, that has to be like a clear transfer of power, not in a way to, you know, neuter 253 00:11:05.320 --> 00:11:09.520 the guy, but like be very clear that like he no longer has authority here so that you 254 00:11:09.520 --> 00:11:10.520 could take it over. 255 00:11:10.520 --> 00:11:14.600 I don't know like how well that'll go, but if he's bought in is like, and he can sell 256 00:11:14.600 --> 00:11:17.520 the fact that like, listen, I'm here to teach classes. 257 00:11:17.520 --> 00:11:18.520 That's what I want to talk about. 258 00:11:18.520 --> 00:11:20.240 But it's like, hey, you want to talk about arm bars? 259 00:11:20.240 --> 00:11:22.240 Here's your guy, not me. 260 00:11:22.240 --> 00:11:24.760 I'm here for the dollars and cents to make sure the lights stay on and so we can keep 261 00:11:24.760 --> 00:11:26.840 this thing going so everybody can keep having fun. 262 00:11:26.840 --> 00:11:28.920 Understand clear division of roles. 263 00:11:28.920 --> 00:11:32.720 And if you're like, hey, and like play out scenarios, it's like, hey, by the way, you're 264 00:11:32.720 --> 00:11:34.080 like, hey, that's not how we do things here. 265 00:11:34.080 --> 00:11:36.720 It's like, duh, that's why it's not working. 266 00:11:36.720 --> 00:11:38.080 And so we are going to change things. 267 00:11:38.240 --> 00:11:41.840 Yeah, monetarily, I think is where I've run into the issue, which I'll have to think 268 00:11:41.840 --> 00:11:45.760 through of how to make sure that they also paid something that they feel that's worth. 269 00:11:45.760 --> 00:11:46.760 It's a true point. 270 00:11:46.760 --> 00:11:49.880 I think we just need to maybe wait it out for the right ones. 271 00:11:49.880 --> 00:11:56.280 There's four sure 25 that will sign their stuff over to take it to just just teach classes 272 00:11:56.280 --> 00:11:57.280 because that's what they thought. 273 00:11:57.280 --> 00:12:01.280 They thought when they bought into the opportunity that they were just going to make money doing 274 00:12:01.280 --> 00:12:02.280 something they left. 275 00:12:02.280 --> 00:12:03.280 Understand. 276 00:12:03.280 --> 00:12:05.280 But then all of their days doing stuff they hate and they barely could do the stuff they 277 00:12:05.280 --> 00:12:06.280 love. 278 00:12:06.280 --> 00:12:07.280 So it's like, I want to give that back to you. 279 00:12:07.280 --> 00:12:08.280 Here's that. 280 00:12:08.280 --> 00:12:09.280 Okay. 281 00:12:09.280 --> 00:12:10.280 Thank you. 282 00:12:10.280 --> 00:12:11.280 Yeah. 283 00:12:11.280 --> 00:12:12.280 No worries. 284 00:12:12.280 --> 00:12:13.280 Yeah. 285 00:12:13.280 --> 00:12:14.280 Your YouTube and Layla's YouTube is amazing. 286 00:12:14.280 --> 00:12:15.280 And so inspiring. 287 00:12:15.280 --> 00:12:16.280 And you guys recently made a YouTube change to go all in a business content. 288 00:12:16.280 --> 00:12:20.280 Do you foresee in the next 30 days, 60 days, quarter, any additional YouTube changes? 289 00:12:20.280 --> 00:12:22.280 And where are you putting your chips in with YouTube? 290 00:12:22.280 --> 00:12:23.280 Oh, great question. 291 00:12:23.280 --> 00:12:26.600 No, I think back to business is going to be the theme for the foreseeable future. 292 00:12:26.600 --> 00:12:30.200 We did like a quarter-ish, maybe like 16 weeks, where we just tried, we'd experiment 293 00:12:30.200 --> 00:12:31.840 it with some wider topics. 294 00:12:31.840 --> 00:12:34.400 And what was interesting and hopefully you guys saw it, it's like, we got more views 295 00:12:34.400 --> 00:12:35.400 on that stuff. 296 00:12:35.400 --> 00:12:39.160 And so I felt confident in saying like, oh, I know how to get views. 297 00:12:39.160 --> 00:12:40.840 But that doesn't get me what I want. 298 00:12:40.840 --> 00:12:43.480 We should talk to one of our leaders in the company earlier today. 299 00:12:43.480 --> 00:12:46.720 It's like, we just always try to think from the perspective of what increases the likely 300 00:12:46.720 --> 00:12:49.160 that what we want to have happened happens. 301 00:12:49.160 --> 00:12:52.320 And so what I want to have happened is that we get as many business owners as possible 302 00:12:52.320 --> 00:12:57.720 into our, and so me making mosey meals, the idea was, well, maybe entrepreneurs who are 303 00:12:57.720 --> 00:13:00.040 kind of like fitness oriented are going to like this stuff. 304 00:13:00.040 --> 00:13:02.920 But what really happened is just a bunch of people who watch fitness stuff watch that 305 00:13:02.920 --> 00:13:04.720 video and don't care about business. 306 00:13:04.720 --> 00:13:07.200 The question then comes back because I had somebody else ask me this, they're like, 307 00:13:07.200 --> 00:13:10.560 I thought a brand was like your personal thumbprint, like they're all different aspects 308 00:13:10.560 --> 00:13:13.680 like you like dessert, you train your calves, like, well, it's other stuff, right? 309 00:13:13.680 --> 00:13:17.640 And so I think it's fundamentally like, what's the main topic? 310 00:13:17.640 --> 00:13:19.240 The main topics business. 311 00:13:19.240 --> 00:13:24.200 But if it's business first and then I sprinkle in the fact that I train my calves or whatever, 312 00:13:24.200 --> 00:13:25.560 then it's still business people. 313 00:13:25.560 --> 00:13:29.320 So everybody in my audience will like it and some of them will like it more. 314 00:13:29.320 --> 00:13:34.040 But if I start with food stuff and then business stuff kind of gets sprinkled in, I'm getting 315 00:13:34.040 --> 00:13:35.680 the wrong first person. 316 00:13:35.680 --> 00:13:39.320 And so business content overlaps 100% of my audience. 317 00:13:39.320 --> 00:13:43.200 The other stuff just creates a second form of affinity. 318 00:13:43.200 --> 00:13:49.080 So if you like dessert, fitness and making money and philosophy, you're going to fucking 319 00:13:49.080 --> 00:13:50.560 love me, right? 320 00:13:50.560 --> 00:13:54.360 But if you just like making money, I don't want that person to not want to watch my stuff 321 00:13:54.360 --> 00:13:56.000 because I'm talking about not that. 322 00:13:56.000 --> 00:13:59.000 But if I have a business piece that mentions dessert, they're not going to not watch the 323 00:13:59.000 --> 00:14:00.000 video. 324 00:14:00.000 --> 00:14:02.000 And so that's really, it's like, what's the main emphasis? 325 00:14:02.000 --> 00:14:05.640 And so for me, knowing that, and I have to do the math on this, this is worth for everybody, 326 00:14:05.640 --> 00:14:10.080 is there's 300 million Americans, 9% of Americans have businesses, 27 to 30 million depending 327 00:14:10.080 --> 00:14:11.080 where you look at the source. 328 00:14:11.080 --> 00:14:12.080 So 30 million businesses. 329 00:14:12.080 --> 00:14:15.840 But that means like, so partners, hairstylists, LLCs that exist. 330 00:14:15.840 --> 00:14:18.120 Now of those people, so there's 30 million total. 331 00:14:18.120 --> 00:14:19.120 Okay. 332 00:14:19.120 --> 00:14:22.640 Now how many of those people, like I would say, have like business businesses, like one employee? 333 00:14:22.640 --> 00:14:24.880 Well now we're already at like 10 million. 334 00:14:24.880 --> 00:14:28.040 So okay, there's not that many business owners. 335 00:14:28.040 --> 00:14:31.360 Like you gave this huge role and all of a sudden just gets really, really shrunk down. 336 00:14:31.360 --> 00:14:35.480 And then from there, that like, like this, like way smaller, right? 337 00:14:35.480 --> 00:14:39.200 And so I have to be realistic about like, I'm not going to compete with Mr. Beast on 338 00:14:39.200 --> 00:14:43.360 views because entertainment is reinforcing for everyone. 339 00:14:43.360 --> 00:14:46.400 Education inherently is harder for some people to consume because it requires work, you have 340 00:14:46.400 --> 00:14:47.400 to think, right? 341 00:14:47.400 --> 00:14:51.320 And so making sure that you don't take lessons from entertainment, it took me time to learn 342 00:14:51.320 --> 00:14:54.440 this and apply them to the wrong business context. 343 00:14:54.440 --> 00:14:57.000 And so everybody here I think is here to make money. 344 00:14:57.000 --> 00:15:01.240 And so the content that you make costs resources and you expect to get a return on those resources 345 00:15:01.640 --> 00:15:04.720 and so we have to ask what content is going to increase the likelihood that we get the desired 346 00:15:04.720 --> 00:15:05.720 person. 347 00:15:05.720 --> 00:15:09.120 And so if I make business content unsurprisingly, more business owners watch it. 348 00:15:09.120 --> 00:15:12.600 If I make not business content, more not business owners watch it. 349 00:15:12.600 --> 00:15:16.240 And so as simple as that sounds, it took me 16 weeks to learn and so hopefully I passed 350 00:15:16.240 --> 00:15:17.240 that on to you. 351 00:15:17.240 --> 00:15:20.600 But it also means if you look at my views now, we're way lower than we were. 352 00:15:20.600 --> 00:15:22.240 But I'm going really deep on business stuff. 353 00:15:22.240 --> 00:15:24.240 Hopefully you guys like the stuff I'm posting lately. 354 00:15:24.240 --> 00:15:25.240 Yeah. 355 00:15:25.240 --> 00:15:26.240 Yeah, it's way deeper business stuff. 356 00:15:26.240 --> 00:15:29.800 But like, I get like 100,000 views in my average for those 400. 357 00:15:29.800 --> 00:15:31.800 But I was going wider. 358 00:15:31.800 --> 00:15:34.800 But in terms of all the metrics that I care about, the opt-ins on our site that are for business 359 00:15:34.800 --> 00:15:37.800 owners, the percentage of people who say I want to start a business versus I own a business 360 00:15:37.800 --> 00:15:39.960 or want to scale a business is significantly skewed. 361 00:15:39.960 --> 00:15:42.200 It's doubled towards own a business. 362 00:15:42.200 --> 00:15:44.000 My book sales have doubled. 363 00:15:44.000 --> 00:15:46.680 And so the metrics I care about have gone up. 364 00:15:46.680 --> 00:15:49.880 And so it's like, it's very tough because Mickey content is very reinforcing because you 365 00:15:49.880 --> 00:15:52.640 want to get more views, you want to get more likes because you get into that game. 366 00:15:52.640 --> 00:15:54.960 You have to make sure you're doing it for the right thing. 367 00:15:54.960 --> 00:15:58.880 But as long as we check the box of like, this is about business, then by all means I want 368 00:15:58.880 --> 00:16:00.920 to jam the shit out of the views and whatnot. 369 00:16:00.920 --> 00:16:03.000 As long as it's about the right stuff. 370 00:16:03.000 --> 00:16:06.520 From Matt, do you have any iterations that you have been making from what you just did 371 00:16:06.520 --> 00:16:08.520 like forecasting for the next four weeks? 372 00:16:08.520 --> 00:16:09.520 No. 373 00:16:09.520 --> 00:16:10.520 No. 374 00:16:10.520 --> 00:16:11.720 Honestly, it's just like me making business stuff. 375 00:16:11.720 --> 00:16:13.640 As much as I'd love to say we did this really conflict strategy. 376 00:16:13.640 --> 00:16:15.920 Like we get down and kill like, what do you want to talk about today? 377 00:16:15.920 --> 00:16:16.920 And we're like, yeah, this. 378 00:16:16.920 --> 00:16:19.400 That's how I make the video on. 379 00:16:19.400 --> 00:16:22.680 Sometimes they had like, they'll come with a couple that are pre-prepared. 380 00:16:22.680 --> 00:16:26.040 And they're like, we pulled all bunch of stuff from your, from Twitter and podcasts 381 00:16:26.040 --> 00:16:27.440 that we grouped together on this theme. 382 00:16:27.440 --> 00:16:28.720 And I think we think would be really interesting. 383 00:16:28.720 --> 00:16:30.000 We already got some packaging outliers. 384 00:16:30.000 --> 00:16:31.560 So we think would work well here. 385 00:16:31.560 --> 00:16:33.680 And then from like, I don't feel like making it. 386 00:16:33.680 --> 00:16:34.680 Then we don't make it. 387 00:16:34.680 --> 00:16:36.440 But if I feel like making it, then I make it. 388 00:16:36.440 --> 00:16:39.680 So as much as I'm going to be like, that's, we have the super dialed system. 389 00:16:39.680 --> 00:16:40.680 I just make what I want. 390 00:16:40.680 --> 00:16:41.680 Thank you. 391 00:16:41.680 --> 00:16:42.680 Mayor old loves your costume. 392 00:16:42.680 --> 00:16:43.680 Thank you. 393 00:16:43.680 --> 00:16:44.680 Awesome. 394 00:16:44.680 --> 00:16:45.680 Took one from Mr. Beast. 395 00:16:45.680 --> 00:16:46.680 There we go. 396 00:16:46.680 --> 00:16:47.680 Hello. 397 00:16:47.680 --> 00:16:48.680 Shoot. 398 00:16:48.680 --> 00:16:49.680 Yep. 399 00:16:49.680 --> 00:16:51.080 So you talk about price being like the biggest lever, you know, that we have in terms 400 00:16:51.080 --> 00:16:52.080 of our profit. 401 00:16:52.080 --> 00:16:53.680 You don't really want to be like the lowest market. 402 00:16:53.680 --> 00:16:54.680 You want to be high end. 403 00:16:54.960 --> 00:16:58.160 But it's okay to be lowest in the market if you're going there with a plan of literally 404 00:16:58.160 --> 00:17:00.200 just roughly what you have to, which is what I'm doing. 405 00:17:00.200 --> 00:17:01.200 Yeah. 406 00:17:01.200 --> 00:17:02.200 Yeah. 407 00:17:02.200 --> 00:17:03.200 Exactly. 408 00:17:03.200 --> 00:17:04.200 He does tax first of all businesses zero to six hundred. 409 00:17:04.200 --> 00:17:05.200 Okay. 410 00:17:05.200 --> 00:17:06.200 Keep going. 411 00:17:06.200 --> 00:17:08.120 I really love the fact that I'm doing these services for this price because there's so 412 00:17:08.120 --> 00:17:10.040 many small business owners who need them at this price. 413 00:17:10.040 --> 00:17:11.040 Sure. 414 00:17:11.040 --> 00:17:14.800 Kind of why you speak to whether it still makes sense to like experiment with my prices. 415 00:17:14.800 --> 00:17:16.880 And so there's no advantage to being the second cheapest. 416 00:17:16.880 --> 00:17:17.880 Okay. 417 00:17:17.880 --> 00:17:18.880 So you have to be the cheapest. 418 00:17:18.880 --> 00:17:21.560 But that's because you started with the end in mind that you wanted to build a way 419 00:17:21.560 --> 00:17:25.360 to operationalize making a good margin on the very cheap price that you charge. 420 00:17:25.360 --> 00:17:26.360 Yeah. 421 00:17:26.360 --> 00:17:30.440 You have a gazillion businesses that right now are within your market zero to six hundred 422 00:17:30.440 --> 00:17:32.720 to get of the 10 million businesses that I described earlier. 423 00:17:32.720 --> 00:17:33.720 That's like all of them. 424 00:17:33.720 --> 00:17:34.720 Yeah. 425 00:17:34.720 --> 00:17:35.720 Right. 426 00:17:35.720 --> 00:17:36.920 Like so a few businesses actually make money. 427 00:17:36.920 --> 00:17:37.920 Yeah. 428 00:17:37.920 --> 00:17:41.360 And so you are perfectly suited to the majority of business owners, solar partners, single, 429 00:17:41.360 --> 00:17:43.200 you know, tiny location operators and whatnot. 430 00:17:43.200 --> 00:17:45.480 If I were to buy your business tomorrow, I would just jam ten. 431 00:17:45.480 --> 00:17:46.480 That's why I asked you. 432 00:17:46.480 --> 00:17:47.520 I was like, how many people can you sign up at that? 433 00:17:47.520 --> 00:17:50.440 And you said you could handle 10 to 15 new customers a day, which for accounting and 434 00:17:50.440 --> 00:17:52.400 tax is absurd in terms of you. 435 00:17:52.400 --> 00:17:53.400 That's right now. 436 00:17:53.400 --> 00:17:54.400 But I mean, you give me a month. 437 00:17:54.400 --> 00:17:55.400 Right. 438 00:17:55.400 --> 00:17:56.400 No. 439 00:17:56.400 --> 00:17:58.480 And so when I heard that though, it's like that's exciting. 440 00:17:58.480 --> 00:18:02.760 And so all my entire focus is like, you already have this back end that runs really good 441 00:18:02.760 --> 00:18:04.200 margin on this tiny price. 442 00:18:04.200 --> 00:18:05.200 Yeah. 443 00:18:05.200 --> 00:18:06.800 Did you just jam the living hell out of the front end? 444 00:18:06.800 --> 00:18:07.800 Yeah. 445 00:18:07.800 --> 00:18:08.800 That's it. 446 00:18:08.800 --> 00:18:09.800 I wouldn't mess with anything on the back end. 447 00:18:09.800 --> 00:18:10.800 Yeah. 448 00:18:10.800 --> 00:18:11.800 You have one percent turn. 449 00:18:11.800 --> 00:18:12.800 People like it. 450 00:18:12.800 --> 00:18:13.800 You have a huge value discrepancy. 451 00:18:13.800 --> 00:18:14.800 It's low price. 452 00:18:14.800 --> 00:18:15.800 Yeah. 453 00:18:15.800 --> 00:18:17.080 I would just jam as much as humanly possible. 454 00:18:17.080 --> 00:18:21.920 When you increase price, you have two things that occur downstream, which is that conversion 455 00:18:21.920 --> 00:18:27.640 rate typically drops and churned if you have recurring goes up. 456 00:18:27.640 --> 00:18:32.440 And so when you're figuring out what the best price is, is you want to say, and if you don't 457 00:18:32.440 --> 00:18:34.160 know how this works, it's you have price. 458 00:18:34.160 --> 00:18:38.400 So let's say it's 10 bucks a month divided by churn, which let's say it's 10 percent 459 00:18:38.400 --> 00:18:39.400 whatever. 460 00:18:39.400 --> 00:18:40.400 All right. 461 00:18:40.400 --> 00:18:41.400 Equals $100 of LTV. 462 00:18:41.400 --> 00:18:42.400 Right. 463 00:18:42.400 --> 00:18:44.320 So that's what we're going to make from a customer. 464 00:18:44.320 --> 00:18:46.960 So then the only other variable that we have to factor into it and we factor price in 465 00:18:46.960 --> 00:18:49.560 churn in is what's our conversion rate. 466 00:18:49.560 --> 00:18:53.200 And so if we're selling, we get 100 clicks, we have 100 calls, whatever the first thing 467 00:18:53.200 --> 00:18:56.800 in your sales process is, we say, okay, well, we have that many clicks. 468 00:18:56.800 --> 00:18:58.880 We converted this percentage at this price. 469 00:18:58.880 --> 00:19:01.960 That's the first thing that the price is going to affect, but it'll also affect how long 470 00:19:01.960 --> 00:19:02.960 they stay. 471 00:19:02.960 --> 00:19:08.120 Because in general, cheaper prices have lower turn, but not proportionally lower turn. 472 00:19:08.120 --> 00:19:09.960 And that's where the magic of pricing comes in. 473 00:19:09.960 --> 00:19:13.920 And so if you double your price, you don't typically cut your conversion in half. 474 00:19:13.920 --> 00:19:17.320 If you double your price, you can cut your conversion by 25 percent. 475 00:19:17.320 --> 00:19:20.240 But if you did that, that makes a lot of sense. 476 00:19:20.240 --> 00:19:23.640 And where this makes even more sense is, let's say you run a business that has, let's 477 00:19:23.640 --> 00:19:26.080 say you have 20 percent margins, right? 478 00:19:26.080 --> 00:19:30.680 If you raise your price by 20 percent, you might have a 5 percent drop in conversion. 479 00:19:30.680 --> 00:19:35.040 But if you have a 20 percent increase, right, which you then multiply this by 0.95, which 480 00:19:35.040 --> 00:19:37.520 would be 19 percent, all right. 481 00:19:37.520 --> 00:19:40.200 So we have a net 19 percent increase in revenue. 482 00:19:40.200 --> 00:19:47.520 And we had 20 percent margins, which means we almost 2x the business in terms of profit. 483 00:19:47.520 --> 00:19:50.520 And so pricing is the strongest lever that you have on making money. 484 00:19:50.520 --> 00:19:55.320 And most people get so afraid of this because what happens is that from an anecdotal experience 485 00:19:55.320 --> 00:19:58.360 is that especially if you're the one taking sales cause you're very close to the sales 486 00:19:58.360 --> 00:20:03.960 of the business, you increase the price and all of a sudden your reward cycle goes down. 487 00:20:03.960 --> 00:20:07.760 Because you're used to getting guesses on 5 out of 10 and now you're getting guesses 488 00:20:07.760 --> 00:20:08.760 on 3 out of 10. 489 00:20:08.760 --> 00:20:10.360 You're like, oh my god, this was a terrible decision. 490 00:20:10.360 --> 00:20:11.680 What were we thinking? 491 00:20:11.680 --> 00:20:16.080 But when you do the math, you're like, oh, we make more money to serve fewer people. 492 00:20:16.080 --> 00:20:18.520 And if we serve fewer people, that costs even less money. 493 00:20:18.520 --> 00:20:21.200 And we make more money doing that. 494 00:20:21.200 --> 00:20:22.200 Huh. 495 00:20:22.200 --> 00:20:25.000 And so this isn't me selling you on raising your price. 496 00:20:25.000 --> 00:20:27.400 But I am just selling you on doing the math. 497 00:20:27.400 --> 00:20:28.400 Yeah. 498 00:20:28.400 --> 00:20:32.280 So if your conversion rate does not drop and your churn does not increase and you raise 499 00:20:32.280 --> 00:20:35.080 your price, more money good. 500 00:20:35.080 --> 00:20:39.600 But every time you do a test, and this is for everybody, you always guarantee a cost of 501 00:20:39.600 --> 00:20:40.600 testing. 502 00:20:40.600 --> 00:20:43.080 You don't guarantee upside from a test. 503 00:20:43.080 --> 00:20:45.800 And so one of the big things that feel like a lot of people in this room do is they want 504 00:20:45.800 --> 00:20:47.440 to test things all the time. 505 00:20:47.440 --> 00:20:50.280 You have to make a really good argument for why this is the constraint of the business 506 00:20:50.280 --> 00:20:54.840 that's worth the price of the test that you are guaranteed to pay, which is you have 507 00:20:54.840 --> 00:20:55.840 to retrain the team. 508 00:20:55.840 --> 00:20:56.840 You have to change the scripts. 509 00:20:56.840 --> 00:20:57.840 You have to change your point of sale. 510 00:20:57.840 --> 00:20:59.760 You have to change your system. 511 00:20:59.760 --> 00:21:03.200 Like all these other, your contracts, there's all these things that have to change downstream 512 00:21:03.200 --> 00:21:04.600 from this one change. 513 00:21:04.600 --> 00:21:05.600 And we do this haphazardly. 514 00:21:05.600 --> 00:21:08.360 Oh, this week I have this flavor of test that I want to run. 515 00:21:08.360 --> 00:21:11.360 But then your team's like, always telling you, like you're changing things all the time. 516 00:21:11.360 --> 00:21:12.840 And the reality is you are. 517 00:21:12.840 --> 00:21:14.040 You'll be surprised. 518 00:21:14.040 --> 00:21:18.720 But a lot of times when I stepped away from businesses, they made more money. 519 00:21:18.720 --> 00:21:21.600 And so like we need like this much, Alex, not this much, Alex. 520 00:21:21.600 --> 00:21:24.720 And so there's a reason that like I only talked before it comes like once a year. 521 00:21:24.720 --> 00:21:27.080 Because like I'm like, okay, I'm going to come in and fuck a whole bunch of shit up. 522 00:21:27.080 --> 00:21:28.320 And I'm like, all right, go do that. 523 00:21:28.320 --> 00:21:29.320 I'll see you in a year. 524 00:21:29.360 --> 00:21:31.440 Because if I'm there all the time, I'm asking myself up. 525 00:21:31.440 --> 00:21:35.920 And so it's like you just need just enough to change the real few things that matter. 526 00:21:35.920 --> 00:21:38.480 Because if I only have a day, then I'm only going to look at, all right, what are the 527 00:21:38.480 --> 00:21:39.480 big things? 528 00:21:39.480 --> 00:21:40.480 Let's change this. 529 00:21:40.480 --> 00:21:41.480 Let's test that. 530 00:21:41.480 --> 00:21:42.480 That's it. 531 00:21:42.480 --> 00:21:46.960 And so for you, I'd be like, okay, I would consider tweaking profits if it's not operationally 532 00:21:46.960 --> 00:21:48.360 complex for you. 533 00:21:48.360 --> 00:21:52.240 Look at the conversion rate, look at the churn, separate out the cohort for those customers. 534 00:21:52.240 --> 00:21:55.840 So tag them so you can see if their churn is different because if the churn goes from 535 00:21:55.840 --> 00:22:00.400 one percent to two percent a month, you cut out TV in half because you're so low on 536 00:22:00.400 --> 00:22:05.320 churn that just literally one to two percent cuts, I mean, it's, it's massive. 537 00:22:05.320 --> 00:22:08.520 So unless you've more than doubled the price, if churn goes from one to two, it's not worth 538 00:22:08.520 --> 00:22:09.520 it. 539 00:22:09.520 --> 00:22:10.520 Okay. 540 00:22:10.520 --> 00:22:13.040 Your churn's so low that that's why I'm like, don't fuck with it. 541 00:22:13.040 --> 00:22:14.920 You're already super profitable. 542 00:22:14.920 --> 00:22:16.400 Just jam as much as you can on the front end. 543 00:22:16.400 --> 00:22:17.400 It's not worth the risk. 544 00:22:17.400 --> 00:22:19.560 What do you mean by jam as much as you can on the front end? 545 00:22:19.560 --> 00:22:20.560 Sell a bunch of people. 546 00:22:20.560 --> 00:22:21.560 Okay. 547 00:22:21.560 --> 00:22:22.560 Carp it and sell. 548 00:22:22.560 --> 00:22:23.560 Alex, nice to meet you. 549 00:22:23.560 --> 00:22:24.560 I'm Jake. 550 00:22:24.560 --> 00:22:25.560 Nice to meet you. 551 00:22:25.600 --> 00:22:28.920 We're in our business at the moment is how we acquire customers. 552 00:22:28.920 --> 00:22:33.920 We have a JV model, so we help coaches, consultants grow and monetize their audience on Instagram. 553 00:22:33.920 --> 00:22:38.200 We work with partners, so they promote our webinar and then for two or three days, four days 554 00:22:38.200 --> 00:22:41.040 on their calendar, we do reset. 555 00:22:41.040 --> 00:22:45.320 So we're maxed out of sort of 50, 60 partners that we can possibly promote per year. 556 00:22:45.320 --> 00:22:46.320 Why? 557 00:22:46.320 --> 00:22:48.520 Because of the size of our database, it's 10,000. 558 00:22:48.520 --> 00:22:52.840 So if we promote them, let's say three days, four days, promoting a partner, our calendar 559 00:22:52.840 --> 00:22:53.840 fills up. 560 00:22:53.840 --> 00:22:55.520 So we can't therefore promote them any further. 561 00:22:55.520 --> 00:23:00.440 So if 50 is 60 partners who promote your webinar, and then you sell their audience. 562 00:23:00.440 --> 00:23:01.440 Yes. 563 00:23:01.440 --> 00:23:02.440 Okay. 564 00:23:02.440 --> 00:23:03.440 Yeah. 565 00:23:03.440 --> 00:23:04.440 And then you're saying because you have to cross promote, you have to promote. 566 00:23:04.440 --> 00:23:05.440 Yeah. 567 00:23:05.440 --> 00:23:06.440 They promote us so we promote them. 568 00:23:06.440 --> 00:23:07.600 That's, it's like a reset. 569 00:23:07.600 --> 00:23:08.920 How long have you been doing this? 570 00:23:08.920 --> 00:23:09.920 Four years. 571 00:23:09.920 --> 00:23:10.920 Okay. 572 00:23:10.920 --> 00:23:11.920 And you had the same offer four years ago, right? 573 00:23:11.920 --> 00:23:12.920 Yeah, yeah. 574 00:23:12.920 --> 00:23:13.920 Okay. 575 00:23:13.920 --> 00:23:14.920 And the size of your list four years ago, what was it compared to now? 576 00:23:14.920 --> 00:23:15.920 Five thousand. 577 00:23:15.920 --> 00:23:16.920 And what is it now? 578 00:23:16.920 --> 00:23:17.920 Ten thousand. 579 00:23:17.920 --> 00:23:19.920 I mean, how's the list so small if you're doing 50 JVs? 580 00:23:19.920 --> 00:23:24.920 Well, we haven't been, like we, we scaled to 50 last year, the year before it was 20. 581 00:23:24.920 --> 00:23:28.520 So, I mean, 50 JV partners to get 10,000 people on the list. 582 00:23:28.520 --> 00:23:32.720 I think we're, I think we're burning through the, the list because as soon as they come 583 00:23:32.720 --> 00:23:36.160 through our kind of initial sequence, then we're promoting somebody else immediately 584 00:23:36.160 --> 00:23:37.160 to set up. 585 00:23:37.160 --> 00:23:38.160 Yeah. 586 00:23:38.160 --> 00:23:39.160 Yeah. 587 00:23:39.160 --> 00:23:40.160 So is the model flawed? 588 00:23:40.160 --> 00:23:43.160 In my mind though, it was here, you're saying like more better new, not again, I don't 589 00:23:43.160 --> 00:23:44.160 think we could do anymore. 590 00:23:44.160 --> 00:23:45.160 Yeah. 591 00:23:45.160 --> 00:23:46.160 So it kind of makes. 592 00:23:46.160 --> 00:23:48.160 Well, you could if you slice the list up, but still the 10,000 seems like an up point 593 00:23:48.160 --> 00:23:49.160 to me. 594 00:23:49.160 --> 00:23:50.160 Like something doesn't make sense there. 595 00:23:50.160 --> 00:23:53.560 Like shoot, like the top affiliate that we had who promoted my book launch sent 10,000 596 00:23:53.560 --> 00:23:54.560 often. 597 00:23:54.560 --> 00:23:55.560 There's one guy. 598 00:23:55.560 --> 00:23:56.560 Yeah. 599 00:23:56.560 --> 00:24:01.360 But if we're re-sipping an hour list is 10,000, if we work the part who's got 20,000 or 30,000 600 00:24:01.360 --> 00:24:05.440 or even 50,000, they're generally sending two, three times as many leads as we have to 601 00:24:05.440 --> 00:24:06.440 them. 602 00:24:06.440 --> 00:24:07.440 So we're not as an attractive partner. 603 00:24:07.440 --> 00:24:08.440 Right. 604 00:24:08.440 --> 00:24:09.440 That's what I'm saying. 605 00:24:09.440 --> 00:24:11.440 So weird is that you have 50 or 60 people sending you leads and you only have 10,000. 606 00:24:11.440 --> 00:24:12.920 That's the part that doesn't make any sense to me. 607 00:24:12.920 --> 00:24:16.000 I think it's the whole risk of brought, like the whole reciprocal thing. 608 00:24:16.000 --> 00:24:17.000 That's the issue. 609 00:24:17.000 --> 00:24:18.280 Like there's tons of people build off affiliates. 610 00:24:18.280 --> 00:24:19.520 They just don't say I'm going to promote you. 611 00:24:19.520 --> 00:24:22.040 I just compensate you with money in exchange for the road. 612 00:24:22.040 --> 00:24:23.040 Okay. 613 00:24:23.040 --> 00:24:27.040 The free affiliate model that exists on the planet that is scaled is just you promote 614 00:24:27.040 --> 00:24:28.040 me. 615 00:24:28.040 --> 00:24:29.040 You get paid. 616 00:24:29.040 --> 00:24:30.040 Yeah. 617 00:24:30.040 --> 00:24:33.040 So you would build that as opposed to going to a new channel like Instagram, for example. 618 00:24:33.040 --> 00:24:34.040 Yeah. 619 00:24:34.040 --> 00:24:35.040 I mean, you already know how to do that. 620 00:24:35.040 --> 00:24:38.200 I would just, I would probably play with the, this is the price compensation one in terms 621 00:24:38.200 --> 00:24:39.200 of those four. 622 00:24:39.200 --> 00:24:40.720 Is that I would just play with the deal structure. 623 00:24:40.720 --> 00:24:41.720 Okay. 624 00:24:41.720 --> 00:24:43.720 And so you might have to, I mean, you don't have to go with a couple of different versions. 625 00:24:43.720 --> 00:24:46.960 But I like, fundamentally people will promote other people's stuff as long as it, and here's 626 00:24:46.960 --> 00:24:47.960 the big thing. 627 00:24:47.960 --> 00:24:49.880 It has to, it has to be a creative to their audience. 628 00:24:49.880 --> 00:24:51.520 It has to be a value additive. 629 00:24:51.520 --> 00:24:55.720 If you can find a way, I'm going to give something amazing to your audience, which is like, 630 00:24:55.720 --> 00:24:59.120 I'll do a Q&A for your audience if you're one of the top however many. 631 00:24:59.120 --> 00:25:03.680 And so then that gives that audience a reason to, or that promoter a reason to promote it. 632 00:25:03.680 --> 00:25:06.000 And it gives the audience a reason why they would click through their link. 633 00:25:06.000 --> 00:25:09.760 It's like, I would like this thing that doesn't benefit the promoter, but benefits me as 634 00:25:09.760 --> 00:25:10.760 the end user. 635 00:25:10.760 --> 00:25:14.520 And so that doesn't detract or take good will from the list, right? 636 00:25:14.520 --> 00:25:18.360 Like instead of thinking like reciprocity or whatever, think like, what would I need 637 00:25:18.360 --> 00:25:22.960 to do in order to make sure that their list was better off from promoting my thing? 638 00:25:22.960 --> 00:25:23.960 And then do that. 639 00:25:23.960 --> 00:25:24.960 Okay. 640 00:25:24.960 --> 00:25:25.960 Does that make sense? 641 00:25:25.960 --> 00:25:26.960 Yeah. 642 00:25:26.960 --> 00:25:28.200 So front of mine has a big, big, big JV business. 643 00:25:28.200 --> 00:25:31.560 And what he does is he gives away a free service that he provides. 644 00:25:31.560 --> 00:25:33.120 So by the way, this is great for you. 645 00:25:33.120 --> 00:25:34.720 It's actually taxing and counting stuff. 646 00:25:34.720 --> 00:25:38.720 And so he gives away some sort of tax counting, whatever, on the front end, that they can 647 00:25:38.720 --> 00:25:40.480 add to every single sale that they have. 648 00:25:40.480 --> 00:25:41.560 So they add it to their stack. 649 00:25:41.560 --> 00:25:43.080 They had his service to their stacks. 650 00:25:43.080 --> 00:25:45.760 They get a premium for the service that he provides. 651 00:25:45.760 --> 00:25:48.040 And so by doing that, they just get all margin they have to do anything. 652 00:25:48.040 --> 00:25:50.800 And he gets free leads because they come to him. 653 00:25:50.800 --> 00:25:53.920 He delivers the service that he promises, which adds value to that person's audience. 654 00:25:53.920 --> 00:25:55.840 And then he upsells them additional services. 655 00:25:55.840 --> 00:25:57.080 And that's the trade. 656 00:25:57.080 --> 00:26:01.800 And so you just need to find something that gives value, truly, rather than take, take, 657 00:26:01.800 --> 00:26:05.920 make it a give to both them and their audience and you'll have an endless amount of leads 658 00:26:05.920 --> 00:26:07.240 that you can do affiliations with. 659 00:26:07.240 --> 00:26:08.240 Awesome. 660 00:26:08.240 --> 00:26:09.240 Thank you. 661 00:26:09.240 --> 00:26:10.240 That helped. 662 00:26:10.240 --> 00:26:11.240 Yeah. 663 00:26:11.240 --> 00:26:12.240 Okay. 664 00:26:12.240 --> 00:26:13.240 Cool. 665 00:26:13.240 --> 00:26:14.240 This is Alex. 666 00:26:14.240 --> 00:26:15.240 Yeah. 667 00:26:15.240 --> 00:26:16.240 Hello. 668 00:26:16.240 --> 00:26:17.920 I'm asking out from federal contract. 669 00:26:17.920 --> 00:26:23.540 I created some software to help small businesses kind of simplify their business development 670 00:26:23.540 --> 00:26:26.920 and market research efforts in the federal contacting space. 671 00:26:26.920 --> 00:26:27.920 Okay. 672 00:26:27.920 --> 00:26:33.880 You've insulated yourself with a team of subject matter experts that are highly intelligent. 673 00:26:33.880 --> 00:26:38.800 And my question to you is, what book would you recommend to us for closing? 674 00:26:38.800 --> 00:26:42.680 Honestly, I'd recommend the actual videos I put out there more than the books. 675 00:26:42.680 --> 00:26:43.680 Okay. 676 00:26:43.680 --> 00:26:48.880 Well, because I have a podcast or two or three that cover just obstacle overcomes. 677 00:26:48.880 --> 00:26:50.600 And do you know what the closure framework? 678 00:26:50.600 --> 00:26:51.600 Fairly. 679 00:26:51.600 --> 00:26:52.600 Okay. 680 00:26:52.600 --> 00:26:57.520 So if you just Google Closer Framework, Alex Ramozy, if you Google Diagnostic Sale, Alex Ramozy, 681 00:26:57.520 --> 00:27:02.680 Objection Overcomes, Alex Ramozy, all three of those will pull up probably 10 plus videos 682 00:27:02.680 --> 00:27:06.280 that are really in depth trainings for me on how to sell that'll probably be more engaging 683 00:27:06.280 --> 00:27:08.920 for your team that you could just like play for them. 684 00:27:08.920 --> 00:27:12.360 They'll have a higher likelihood of actually doing it than reading a book more likely. 685 00:27:12.360 --> 00:27:13.360 Okay. 686 00:27:13.360 --> 00:27:14.840 That's actually what I would do. 687 00:27:14.840 --> 00:27:15.840 Okay. 688 00:27:15.840 --> 00:27:16.840 Yeah. 689 00:27:16.840 --> 00:27:17.840 Yes, sir. 690 00:27:17.840 --> 00:27:22.840 Hey, Alex, B2B pricing question seems to be a drop off in conversion rate after a certain 691 00:27:22.840 --> 00:27:28.800 point, the internal age after a certain point in the life cycle or like at a price point 692 00:27:28.800 --> 00:27:29.800 at a price point. 693 00:27:29.800 --> 00:27:30.800 Okay. 694 00:27:30.800 --> 00:27:31.800 Yeah. 695 00:27:31.800 --> 00:27:32.800 Call it 6,500. 696 00:27:32.800 --> 00:27:35.920 The internal team is great at upselling, so ramps, not walls. 697 00:27:35.920 --> 00:27:39.120 There is an onboarding cost associated with that. 698 00:27:39.120 --> 00:27:44.200 So it's like knowing all of those pieces, how would you structure? 699 00:27:44.200 --> 00:27:49.560 How could we lower the initial cost while maximizing lifetime value and not take a negative? 700 00:27:49.560 --> 00:27:50.560 What do you sell? 701 00:27:50.560 --> 00:27:51.560 Who do you sell to? 702 00:27:51.560 --> 00:27:53.200 B2B Amazon Tiktok Agency, actually. 703 00:27:53.200 --> 00:27:54.200 Okay. 704 00:27:54.200 --> 00:27:55.200 So you sell to Tiktok store owners? 705 00:27:55.200 --> 00:27:58.200 B2C Top 100, Amazon and Tiktok Optimization. 706 00:27:58.200 --> 00:27:59.200 That's the last one. 707 00:27:59.200 --> 00:28:00.200 That's the CRO stuff. 708 00:28:00.200 --> 00:28:01.200 Yeah. 709 00:28:01.200 --> 00:28:02.200 Or do you run ads to it? 710 00:28:02.200 --> 00:28:03.200 Both. 711 00:28:03.200 --> 00:28:04.200 Okay. 712 00:28:04.200 --> 00:28:05.880 And so, the onboarding price is. 713 00:28:05.880 --> 00:28:11.400 Build down of their account, integration with the software, building listings, optimization, 714 00:28:11.400 --> 00:28:12.400 building out content. 715 00:28:12.400 --> 00:28:13.400 Okay. 716 00:28:13.400 --> 00:28:14.400 Got it. 717 00:28:14.400 --> 00:28:15.400 And so you charge $6,800? 718 00:28:15.400 --> 00:28:21.200 Uh, onboarding could be anywhere from depending on catalog size up to $20,000, $25,000. 719 00:28:21.200 --> 00:28:22.200 Okay. 720 00:28:22.200 --> 00:28:23.680 And that's a problem. 721 00:28:23.680 --> 00:28:25.840 The people are like, no, that sounds like a lot. 722 00:28:25.840 --> 00:28:26.840 Exactly. 723 00:28:26.840 --> 00:28:27.840 What's the ongoing price? 724 00:28:27.840 --> 00:28:30.080 Anywhere between $6,500 all the way up to $30,000 a month. 725 00:28:30.080 --> 00:28:33.880 So $6,500 to $30,000, hand $6,500 to $30,000 per month. 726 00:28:34.360 --> 00:28:35.360 Okay. 727 00:28:35.360 --> 00:28:36.360 Do they commit to anything or no? 728 00:28:36.360 --> 00:28:37.360 Yeah. 729 00:28:37.360 --> 00:28:43.320 We plan around with time periods between higher for month to month or a month for lower. 730 00:28:43.320 --> 00:28:46.680 So I'll give you, I'll give you something that's one of my favorite offers ever. 731 00:28:46.680 --> 00:28:50.320 Let's say, let's say it's $30,000, all right, we'll just use the big price. 732 00:28:50.320 --> 00:28:52.520 $30,000 down, no commitment. 733 00:28:52.520 --> 00:28:55.800 Or if you're willing to commit to the fact that this is going to take a little bit of time 734 00:28:55.800 --> 00:28:58.600 and like you're not an impatient Molly, right? 735 00:28:58.600 --> 00:29:01.840 That this is going to take at least six months or at least 12 months to really, you know, 736 00:29:01.840 --> 00:29:04.000 for us to put all of our systems in place, 737 00:29:04.000 --> 00:29:07.960 off stomach the cost of getting you onboarded as long as you commit to 12. 738 00:29:07.960 --> 00:29:11.800 And if you get cold feet, you just pay what you would have paid to go month to month. 739 00:29:11.800 --> 00:29:12.800 Sweet. 740 00:29:12.800 --> 00:29:13.800 So let's say we're doing a gym. 741 00:29:13.800 --> 00:29:18.600 So I would say, hey, it's $500 to sign up with a gym in the $99 a month after that. 742 00:29:18.600 --> 00:29:23.560 Or you can, I'll waive the 500, I'll embroider myself as long as you're willing to commit 743 00:29:23.560 --> 00:29:24.560 to a year. 744 00:29:24.560 --> 00:29:27.480 And if for whatever reason during that year, you choose to cancel, you pay what you would 745 00:29:27.480 --> 00:29:28.760 have paid if you went month to month. 746 00:29:28.760 --> 00:29:32.920 So the 500 acts as an anchor positions the price that you're doing monthly as much 747 00:29:32.920 --> 00:29:35.280 law, which is nice for the sale. 748 00:29:35.280 --> 00:29:38.400 And then they're like, wait, so I can either, it's like, hey, I don't want to commit to 749 00:29:38.400 --> 00:29:39.400 that time. 750 00:29:39.400 --> 00:29:40.400 It's like, no worries, just pay that. 751 00:29:40.400 --> 00:29:44.160 And well, like I have, I have to incur costs to get you onboarded. 752 00:29:44.160 --> 00:29:45.800 That cost has to get paid one way or another. 753 00:29:45.800 --> 00:29:50.320 I will stomach it because I can spread it over 12 months if you're willing to commit to that. 754 00:29:50.320 --> 00:29:53.040 If you're not willing to commit to that, I'm not going to lose money bringing you on. 755 00:29:53.040 --> 00:29:54.040 So it's up to you. 756 00:29:54.040 --> 00:29:55.960 If you're willing to commit and you're committed enough from what I've said that we can 757 00:29:55.960 --> 00:29:58.280 help you out, I will eat that. 758 00:29:58.280 --> 00:30:01.080 Now for whatever reasons, three months from now, you're like screw you, then I'm like, 759 00:30:01.080 --> 00:30:02.080 then you pay the onboarding. 760 00:30:02.080 --> 00:30:03.080 You're out. 761 00:30:03.080 --> 00:30:04.080 Does that make sense? 762 00:30:04.080 --> 00:30:05.080 Yeah. 763 00:30:05.080 --> 00:30:06.080 Cool.