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They're like, man, these guys just expect me to sell all day and the answer is yes

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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. I hope you enjoy and subscribe

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What's going on everyone? Hope you guys are having an awesome Monday morning

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Wanted to make this because I woke up with this on my mind and I think it was relevant

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So I was looking through our our weekly reports and I was looking at the sales team stuff

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And I was looking at the GLX stuff, which is our fulfillment side

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And I thought this was really fascinating. I would share this with you

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So one of the things that happens is we get a lot of people

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Uh, who come on and they say you know, we're like, hey, what's your goal right now? What are you trying to accomplish?

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And a lot of gyms are like man if I could get 300 members that would be amazing

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I like 200 members that would be amazing. I get 500 members that would be amazing, right?

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And so they have these goals, right?

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And yet they don't follow the simple math of getting there and so most times the inflow is the cap, right?

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Now there's obviously like you've probably heard if you've if you've ever followed my stuff for long enough

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You'd know that I talk a lot about retention about lifetime value et cetera, right?

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But at a basic level there there's at some point what I would consider acceptable metrics, right?

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And what that means is let's say that you're you know if you're in the service-based business

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You're never going to get your turn below one percent to I mean, it's just it's very unlikely, right?

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And that's and if you are in that it's typically because you're growing purely off organic referrals, which is awesome

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But if you want to be massive you need to grow off everything you need to grow off organic you need to grow off outbound you need to grow off

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paid acquisition, right running ads and um the issue that I just continue to see is and so then so this last week

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I think we had like 10 gyms

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Pause on GLX and so GLX is our kind of done for you side

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And all 10 of them paused because there was too much inflow

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They could not handle the lead flow and the appointments

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That were being set for them and I'm going to pause that right right there and Layla was on a podcast this last week as well

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With I think it's push press. I think it's push press and the CEO push press was like you know

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um

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We've we've heard that the number one complaint that that we hear from people you know from our customers who have worked with you is that

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They're like man these guys just expect me to sell all day

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And the answer is

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Yes, because that's what you said you wanted right and so what's interesting for me is most people want to full gym until they actually have a full gym

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Or see what's required to get a full gym right and so when we used to fly out and force gyms to grow because we didn't have limiting beliefs around

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Growing a gym someone would have 80 clients at their crossfit and then in 21 days

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They'd have 280 clients at their crossfit and they'd be like holy shit

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What do I do? I did not sign up for this. It's like actually you did sign up for this and so it reminds me

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Oh, I'm going to pull this up for you

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my favorite

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My favorite magic cards of all time. All right. It was called burning wish

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So dr. Cashy sent me a card versus really cute of them and

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Underneath it says she wished for a weapon, but for not the skill sorry

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She wished for a weapon, but not for the skill to wield it

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And I feel like a lot of times that's what happens is uh at least for the the people who are coming in to geolex under prepared

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Is they're like I really want to grow. I want to get new customers right our top client right now in the last 30 days

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Sign up a hundred new 130 new clients all right 130 and we actually that's in the last 30 days

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But she signed up 130 in the last two and a half weeks

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So if we give it another like one and a half weeks

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She'll probably top 200 new clients all right

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If you want a

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200 300 400 500 person facility

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And you are not able to sign up 20 new clients a week

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You will not get there right because this is where the acceptable metrics parts comes in

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I would like to give you permission that if you have a service-based business all right services of any kind

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Anything that is easy in is easy out and you're like well

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I mean we have to onboard them and bought what you should be right but easy in service is easy in

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Switching from your CRM to another CRM not easy right big pain in the ass

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And so the likely that you switch is very very low

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Which is why software and things like that are much stickier than services are

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And so you have to kind of accept that that comes with the territory

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So if you're selling service and you want to be big

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Then you have to know that there's going to be a back-end trend that's going to occur

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And that's just because easy and easy out and that's how it works, right?

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But if you have easy in and you're not maximizing the fact that that's your advantage in services that you can scale quickly

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Right your inflow

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Then you're not using one of the primary advantages of being a service provider, right?

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And so if it's like I want to get to to 200 or let's say let's say let's say 300 members, right?

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I want to get to 300 members. Okay. Cool. You want to get to 300 members

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Now your turns 10% industry average and you can only sign up 10 trials a week and that's you maxed out

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Right 10 new prospects per week that give you credit card for some front-end program or trial of some sort right

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You can only sign up 10 of those a week

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Now even somebody who comes in and signs up

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Straight into EFT what we have noticed is we still have to resell them on a longer term because really

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There's the I'm going to try it phase and then there's the I'm going to commit phase and even if like I said

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You sign someone up for recurring it doesn't actually mean they'll stick until they really make the second sale

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And we've seen that across the board for us in our gyms at least. Okay, so if you can only take on 10 new

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New potential prospects, right?

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Per week and that's your cap and you want to get to 300 members

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Then that would mean that you have to convert 75% of them week in week out and a lot of people are not doing that and 10

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Mind you means that you're closing

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50% of

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Four calls a day right that are showing and let's say you're getting half those calls

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Which means you have to have eight scheduled appointments a day now most gyms that I talk to

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Don't even have they're they're stressed out of their mind with that right

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But that's just for them to get 20 or 30 new customers a month

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You want to get to 500 you want to get to 400 you have to accept the fact that you're gonna be selling all day

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Because you're selling a service and you're trying to get to a high number and so most times

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Most times people have goals and are disconnected from the actions that are required to get there

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Right the numbers the basic math and most people just don't do the math like so I would highly encourage you if you know what your turn is

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Look backwards and think okay if I'm gonna lose 20 customers a month that I'm at 200

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Not I want to get to 400 a lot of times you don't just double your info like sometimes you have to do even more than that

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Because you also lose some efficiency on the back. It's part of the game right and so if you're at 10 you're losing 20

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All right, and so if you know you're converting half of your trials

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That means you have to make 40 sales a month all right the industry average by the way is 35% which would mean that if you wanted to replace those 20

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You'd have to sell 60 trials a month okay of some sort 60 front and programs of some sort per month

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If you can't do that

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You will never grow and you will always wonder why

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All right, and so this message is basically for anyone who wants to be a big dog

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If you want to dominate the market which is the marketing that most people respond to like

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Dominate your competition and blah blah blah all that kind of stuff right you want to be a seven figure gym

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Okay, cool then you have to do the math that seven figure gyms do and I do not know a single one of them

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That do not know how to take on high numbers of traffic on a weekend week out basis right what I continue to see is

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I'm going to turn my ads on for a couple weeks and I'll turn them off and then we got to go service those people

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No, no, no, no, no, if you want to scale your inflow never stops

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You have to be able to sign up people this week and next week and the week after that and the week after that and

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fulfill you need to be doing both things concurrently and if you're incapable of doing that

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It means you're not able to manage your schedule of your team right they have to know that the first two hours of the day

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It's blocked on their time is going for app bound

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For for ongoing fulfillment like they're reaching out to your existing customers to make sure that they stay

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Then you have two hours a day that's blocked for onboarding for new customers

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Then you have orientations right all that stuff and then you have sales and you have to disperse

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The meetings that have to happen in order to make this entire model work

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Real quick guys if you can think about how you found this podcast somebody probably tweeted it told you about it

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Share it on instagram or something like that the only way this grows is through word of mouth

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And so I don't run ads. I don't do sponsorships. I don't sell anything

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My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast that you do the exact same thing

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So if it was a review if it was a post if you do that who mean the world to me and you'll throw some good karma out there for another entrepreneur

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Right and that's with any service business like this works the same for us right we've got sales appointments

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We have kickoff calls we have builds that happen in the background and then we have ongoing check-ins to make sure the clients are doing well

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Right beyond that we still have daily calls with me to make sure that they're

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Being able to sell and convert and all that kind of stuff right and so the whole point of this is

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If you're not where you want to be a lot of time

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It's because your inflow is your bottleneck and you haven't operationally prepared yourself for what it actually looks like to sign up a hundred people in a month

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Right 50 60 80 new people in a month the math is there if you want to do it you can do it

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But I'm just seeing this like more times than not and then I'm like when when Dan said it for pushpress that the no more complaint that people got from

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German's like they're just they just flood you know they flooded me with lead they expected me to sell a day

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Yeah, because that's what you said you wanted so either switch your goal or

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Switch your head right like because like if you want to get to hear it's just math backwards

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Right and so just most people have not done that math. So here's how you do the math

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if you want to grow to

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Let's say

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300 members, okay, and let's say your churn is 10% that means you need to sign up 30 people per month to break even now

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Let's just get those 30 now. Let's say you convert half because to get the 300 you have some skills, right?

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So you're converting half your front-end people, which means you're at 60 new sign-ups per month. That's 15 a week

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All right now if you're selling one out of two that you're that you're talking to now you're talking 120 a month

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of people who you're talking to

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Every so that's 30 a week roughly right that you're talking to and you're probably selling only five days or now

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Here's another way I could go off on it's like we only sold two days a week

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It's like well good luck trying to sell you know 30 people in two days. It's not it's very unlikely that's gonna happen, right?

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So if you're not so let's say you're selling six days and you're selling 30

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So you got so five people a day or sorry meet with five people per day, which is not that unreasonable

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It's five 30-minute sessions. It's two and a half hours three hours of sales a day. Like this is not crazy, right?

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Now you're still gonna have show-ups, right? Which is gonna be another inefficiency. All right, so they go 30 goes to 60 appointments a week

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Oh

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Interesting all right now we're at 60 appointments a week and we're just maintaining 300

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We're not even growing to get there yet

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Interesting right and so now we're seeing how this math starts to work out

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Like okay, so now if I wanted to grow an extra 30 on top of that

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Then I needed to have even more. I've need to double what I just said, okay?

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And so we have 30 conversions from

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60 front-end sales which is half of 120 meetups 120 client conversations per month, okay?

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That and then you have half of those that show for their appointments

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And then you need to double that to grow, right? That's the math

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And so if you're not able to deal with that math

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Then you will not get there

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And sometimes it's just like just giving the the sheer reality of the situation is like it's a volume game

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It's a math game. It's the same people who get bent out of shape over one person who says

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I gotta talk to my husband. I don't have my card on me. It's like cool move on

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Champions have short memories

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Right they bounce back fast. They're unaffected by losses because they're just thinking I know I need to close have

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Which means here's the news flash if you have to meet with 200 people 100 people are gonna say no

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And you have to be emotionally okay with that because you just understand the numbers, right?

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You know, they I don't know. I mean you should try and get better at your craft always of course, right?

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But if you just can't accept emotionally and this is what I continue to see

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Is that some guys just can't take the emotional beating of having people say no, which is why they'll never grow

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Right and like the most experienced salespeople they don't get bothered they're like yeah

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They understand that people come with their own preconceived notions to the call

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It's a not about you the salesman. It's about them, right? And just remembering it's about them

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So don't get but hurt if for some reason someone says no of course they have excuses

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That's why they're not in shape. Of course they've limiting beliefs. That's why they're not in shape

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And so if we're gonna expect that they're not gonna come with emotional baggage to the call or to the meeting

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It's ridiculous, right? And so then if we're to take this back one step, right? And we said let's say 240

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Consoles we we're gonna have to be generating 15 leads a day, right roughly

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Huh, well, what does this take to get 15 leads a day in cost?

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Well, right? Let's back into it 15 leads a day 10 bucks a lead or $150. It's $4,500 an ad spend per month

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Just the math and I think that a lot of people don't confront them at they make these goals and don't think about what it takes to get there

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And then as soon as it even gets to a third of what it would actually take to get there to achieve what they want

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They're like, oh my god, this is just so much. So well, yeah, if that's what you want then this is how this is how it works

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It's like why I want to be a champion body motor. Okay. Well, I can only work out three days a week for an hour

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Okay

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Good luck

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Okay, right and so it's like do you want to be a champion or do you just want to be another person who also ran and that's fine

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If that's what you want it's just I'm not hearing that that's what you want

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So either people need to get real clear on what they really want or and and and then make the adjustments accordingly or realize that

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It's not actually their priority and I could go into a whole another thing about like priorities or just priorities

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There's never really conflicting priorities

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You just have one that is a bigger priority than another and if it conflicts

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Then the other one is a secondary priority and sometimes priorities do conflict in terms of their nature

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But not their importance and so you just need to figure out which of these things is more important to me

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Right and most times it's simply being able to delegate time and appropriate on a calendar when things need to get done

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If we know that we have to onboard 30 new customers per week then how do we fit let's say

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30 30-minute consultations in okay, that's 15 hours a week

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I've got one team member. They're here five days a week. There's three hours on there on their calendar

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Great, so now that one person has three hours a day on their calendar five days a week for taking on new customers

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Okay, that seems reasonable. They still have another five hours right and if they have to do conversion meetings

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Which is to convert them into a long-term membership

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From a trial or a funding program now

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From from those people we know that we again have 30 people we got to meet with and so of those 30 people

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And it's the say it's gonna take a 30 it's a 30-minute consult to sell someone into membership

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Boom now that person's at six hours a day. All right. This is just one employee and so this one employee is now managing the

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onboarding and the conversion sales right and then they have two hours a day to do continuous reach outs to the existing customers

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Great that is a role right and then you have a salesperson who's gonna what I mean that has to be a full-time salesperson who's gonna hit those numbers right

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They're gonna meet with 60 people right 60 people six days a week. It's 10 a day right 30 minutes. It's only five hours

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Right and so if you're looking at this

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This is the game is how long does it take?

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How many of them do we have block the time and that is how you scale that's it. That's all there is

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Right and just and just confronting the math now you can try and tweak it in control

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But you have to understand you're not gonna have orders of magnitude improvements

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You're not gonna sell a hundred percent of people who show up. You're not gonna keep a hundred percent of people month over a month

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It just doesn't happen right. It's just it just doesn't and so you have to deal with what is right

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You're always gonna try to improve and that's normal

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But if you wait for always your improvements, you will never start and you'll never get to where you're trying to go

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And so that is my message for the week is that um your inflow is probably your bottleneck and there has to be acceptable metrics

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That you can extrapolate off of and then work backwards into how much time that's required and how many people required to help you get there

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And if that means for you is the provider or the owner of the business that you need to work double time in order to afford the person

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Who's gonna be able to release the bottleneck then that is part of the game all right?

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So anyways, I hope you guys have an amazing Monday. I hope you look at money math

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I hope you look at time math to figure out how you can break your bottlenecks

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So you can get to the gym that you want whether that's corona or not corona or remote or launching anything or you have a

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B to B business

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It doesn't matter the metrics for all the same. All right, so lots of love. Hope you guys are stoked

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Uh for this week because I am we're super excited and I will catch you guys all soon. All right. Bye