WEBVTT 1 00:00:00.000 --> 00:00:04.320 Most of the times when businesses are looking for more customers it's not that they need more customers 2 00:00:04.320 --> 00:00:09.040 It means that they need a better business welcome to the gym secrets podcast where you talk about how to get more customers 3 00:00:09.040 --> 00:00:14.560 How to make more customer and how to keep them longer and the many failures and lessons that we have learned along the way 4 00:00:14.880 --> 00:00:16.880 I hope you enjoy and subscribe 5 00:00:18.160 --> 00:00:23.200 Welcome to franchise secrets with your host Eric van Horn and today's guest is Alex Hormozzi 6 00:00:23.680 --> 00:00:25.680 He's with Jim launch 7 00:00:25.760 --> 00:00:33.040 I've seen this guy around for a while mark doing all kinds of cool marketing stuff helping a lot of health fitness 8 00:00:33.680 --> 00:00:39.760 Franchises out there and probably even a lot more people that are not in the franchising space 9 00:00:39.760 --> 00:00:44.400 And I've been wanting to get to know him and get him on the podcast and we did that 10 00:00:45.440 --> 00:00:46.880 Couple weeks ago 11 00:00:46.880 --> 00:00:50.400 So I begged him to get on the podcast and here we are. So Alex welcome to the show 12 00:00:50.960 --> 00:00:53.040 Thanks for having me under the beer 13 00:00:53.040 --> 00:00:55.040 Absolutely so 14 00:00:55.760 --> 00:01:02.880 How many franchises do you actually work with like you've got to give us the mix of franchises versus like regular gym owners 15 00:01:04.080 --> 00:01:06.080 30% of our 16 00:01:06.080 --> 00:01:08.400 I think I actually was higher than 30 because I asked my team 17 00:01:08.640 --> 00:01:13.920 It's over 30 less than half. I'll say that the gyms that we work with are with existing franchise 18 00:01:14.160 --> 00:01:19.200 So I want to get into your story, but I want to give everybody the context of like who you work with and kind of what you do 19 00:01:19.280 --> 00:01:21.280 So you're not the normal 20 00:01:21.520 --> 00:01:23.520 Facebook ad agency 21 00:01:23.520 --> 00:01:25.680 You probably don't even like the word agency 22 00:01:25.680 --> 00:01:27.680 So 23 00:01:27.680 --> 00:01:33.120 The audience a little bit of like who you are what you do and then I want to dive into like how you got there 24 00:01:33.760 --> 00:01:35.360 Yeah, so I would I would just forever 25 00:01:35.360 --> 00:01:40.960 Possibly are just destroy the word agency because it anchors what we do in a totally wrong way for the last four years 26 00:01:40.960 --> 00:01:44.160 We've never done any done for you services in the last eight weeks 27 00:01:44.160 --> 00:01:49.120 We started it done for your service side, but I would say the vast majority of my business experience has been teaching people how to fish 28 00:01:49.920 --> 00:01:53.440 Not fishing for them, and so that has been kind of the rally and call that we 29 00:01:54.480 --> 00:01:56.640 Built our business off of and so I would say that 30 00:01:58.720 --> 00:02:01.360 Most of the times when businesses are looking for more customers 31 00:02:01.520 --> 00:02:04.240 It's not that they need more customers. It means that they need a better business 32 00:02:04.560 --> 00:02:08.640 And so that's why they struggle with marketing is because the rest of their business is broken 33 00:02:08.640 --> 00:02:10.800 And so they cannot pay the cost of acquisition 34 00:02:10.800 --> 00:02:13.840 So they're always looking for ways to get cheaper leads rather than how to make more per lead 35 00:02:14.400 --> 00:02:18.960 And so are everything that we've ever done has been based around the same three ways of growing a business 36 00:02:19.440 --> 00:02:24.880 Getting more customers making more money per customer and getting them to stay longer and buy more times within the context of a gym is staying longer 37 00:02:25.600 --> 00:02:29.280 And so that's what we focus on is kind of building the profit levers around 38 00:02:30.000 --> 00:02:34.400 The client and so we start with the offers that we're going to make them the services we provide the upsells 39 00:02:34.960 --> 00:02:41.600 That we're going to have along the way and then we back into what we can get per click and from there we're able to build acquisition systems 40 00:02:42.160 --> 00:02:44.160 pretty much in any vertical and we've done that 41 00:02:44.880 --> 00:02:52.960 Obviously specifically within the fitness niche, but we have a software that we do B2B for it's B2B SaaS 42 00:02:53.440 --> 00:02:55.200 we have 43 00:02:55.200 --> 00:02:59.120 A physical product company and so we've started four companies that've done over 10 44 00:02:59.840 --> 00:03:05.600 Three that did over 20 million and one that did over 10 million in 36 months in the last 36 months 45 00:03:05.840 --> 00:03:10.160 In the last how how long were you before you now be 36 months ago 46 00:03:10.720 --> 00:03:16.400 Was it just Jim launch and then you've really grown exponentially? Yeah 36 months ago 47 00:03:16.960 --> 00:03:18.960 It was Jim launch in a different way 48 00:03:19.200 --> 00:03:24.240 So we actually used to be kind of like a turnaround company. So I had a chain of six gyms my own 49 00:03:25.200 --> 00:03:27.200 I joined Russell's inner circle 50 00:03:27.600 --> 00:03:34.080 So Russell's inner circle for the people that don't know Russell Brunson the founder of click funnels 51 00:03:34.560 --> 00:03:39.600 And I don't think he has an inner circle anymore if I'm not mistaken. Maybe it's the inner inner circle now 52 00:03:40.560 --> 00:03:45.680 Yeah, but easy got this inner circle, which is almost like a mastermind as well 53 00:03:46.080 --> 00:03:49.280 And it's a good so go ahead and give it like the audience 54 00:03:50.080 --> 00:03:52.080 Yeah, Liz and what the inner circle is 55 00:03:52.080 --> 00:03:56.560 Russell started click funnels. He's I think when he's one of the best internet marketers in the world 56 00:03:56.560 --> 00:03:59.680 I mean, he's a he's fantastic at all components of that 57 00:04:00.160 --> 00:04:01.840 That's his level of mastery 58 00:04:01.840 --> 00:04:06.320 I joined his group before he was Russell Brunson and when I joined they had 59 00:04:07.040 --> 00:04:11.200 Just on 10 million in a year. So I mean they were just Alex 60 00:04:12.080 --> 00:04:14.080 Yeah, just 61 00:04:15.360 --> 00:04:17.360 And so I think that's that's when we joined 62 00:04:18.080 --> 00:04:22.960 I was sold into the inner circle. I really had no business being sold into it because it was an internet marketing group 63 00:04:22.960 --> 00:04:26.960 And I wasn't I know I had six gyms like I really had no first being there 64 00:04:26.960 --> 00:04:29.440 But I ended up being the best one of the best decisions that I ever made 65 00:04:30.320 --> 00:04:34.800 Because as soon as I got there I had my first call off Russell and he followed up with me after the call and he was like 66 00:04:36.960 --> 00:04:38.960 You shouldn't be in gyms 67 00:04:40.080 --> 00:04:43.360 He's like so first off can you speak in my event? I never normally do this but can you speak there? 68 00:04:43.360 --> 00:04:47.600 I said sure and so after I ended up speaking the event and I was not I wasn't a guru 69 00:04:47.680 --> 00:04:50.640 I was not I was in teaching B2B. I was on weight loss in gyms 70 00:04:50.720 --> 00:04:54.480 You know, and so I went up there and had nothing to sell so I was like this is what we do 71 00:04:54.480 --> 00:04:57.600 Does that we make money? So it's our whole thing 72 00:04:58.080 --> 00:05:03.120 And I had never been and still to this day never been more broad after a presentation 73 00:05:03.200 --> 00:05:07.840 And I did not I wasn't selling anything and I had so many gym owners who were like how can I work with you? 74 00:05:07.840 --> 00:05:08.640 How can I give you money? 75 00:05:08.640 --> 00:05:12.560 And I was like I'm not accepting like go make your own businesses like I don't want to be involved in this 76 00:05:13.920 --> 00:05:15.120 That's so anyways 77 00:05:15.120 --> 00:05:18.720 One guy was like here's my credit card stars me five thousand dollars. Just tell me what I get 78 00:05:19.360 --> 00:05:22.320 And I was like this is very strange. I'm like 20 79 00:05:22.640 --> 00:05:25.520 I'm in my young like mid 20s at this point and so 80 00:05:26.480 --> 00:05:28.960 I called the guy up because like you sure he's like just do it 81 00:05:29.520 --> 00:05:31.120 Okay, you know, I was like go then he's like 82 00:05:31.200 --> 00:05:36.240 What do I get and I was like? I don't know yet, but I promise I'll make you more than five great 83 00:05:36.480 --> 00:05:38.720 And he was like okay fair enough and it turned out 84 00:05:39.360 --> 00:05:42.560 He was actually opening a gym. I was like so you're not opening. He's like no 85 00:05:42.560 --> 00:05:44.960 I was like well, why don't I go and launch your gym 86 00:05:45.840 --> 00:05:50.560 Because the thing that Russell had me talk about was how we filled up five out of the last six facilities 87 00:05:50.640 --> 00:05:54.240 We opened him at full capacity in the first day and I thought that was normal 88 00:05:54.240 --> 00:05:57.440 I thought that's how you were supposed to open a gym where I was like well, why would you open one of them? 89 00:05:58.000 --> 00:06:00.000 Sounds right 90 00:06:00.000 --> 00:06:03.680 And it turns out that that wasn't as common of a practice and so 91 00:06:04.080 --> 00:06:06.640 Anyways, I went out there and ended up doing 92 00:06:07.360 --> 00:06:10.880 191 customer sales 600 ahead in 19 days 93 00:06:12.240 --> 00:06:18.320 Launching his gym and so I made whatever 120 grand in that time period and I looked around and I was like 94 00:06:19.600 --> 00:06:24.080 This is pretty chill like I didn't have to do anything else. I was like this is actually not a bad business model and so 95 00:06:24.400 --> 00:06:30.640 You know, we're starting to spread that I was just doing these launches right fly out and fill a gym up 96 00:06:31.680 --> 00:06:37.520 In 21 days, that's what I did so like I'll take you gym from wherever you're at to full capacity and in less than a month 97 00:06:38.080 --> 00:06:40.320 And so that's what I would do. I was doing it for free 98 00:06:41.040 --> 00:06:43.440 Free with quotes. Yeah, they didn't have to pay anything 99 00:06:43.920 --> 00:06:48.560 I would take a hundred percent of the upfront revenue that I was able to generate and then they would get the customers on the back 100 00:06:49.040 --> 00:06:53.760 At that point you weren't teaching them to do it. You're that was a done for you a hundred percent done for you 101 00:06:53.760 --> 00:06:58.160 Yes, and then you were then you came into Russell's group and he and wait a second 102 00:06:58.480 --> 00:07:02.480 Where did Russell's group fit into this? I met Russell. I spoke his event 103 00:07:03.120 --> 00:07:07.760 This guy then then was like hey, and I was like maybe I'll give this a shot this 104 00:07:08.320 --> 00:07:15.440 You know, and then that started to started to work and so we scaled our sales team to eight guys within two or three months 105 00:07:15.920 --> 00:07:21.360 Or eight gems a month you're flying out so eight guys eight gems a month you were flying them out there they were spending 106 00:07:22.080 --> 00:07:26.640 21 days to launch the gym the gym owners all they wanted was customers 107 00:07:26.640 --> 00:07:31.120 They didn't care how they got them and you were taking all the upfront risk on it 108 00:07:31.120 --> 00:07:34.320 But you were getting a hundred percent of the reward they are left with 109 00:07:35.200 --> 00:07:38.880 Figure not retention and I would teach them that I did the acquisition 110 00:07:38.880 --> 00:07:42.000 But then I taught them was like here's how you're gonna upsell them in the back here she can sell supplements 111 00:07:42.000 --> 00:07:44.800 Here's how you're gonna convert them to members use the price points and then I 112 00:07:45.920 --> 00:07:50.800 This became an editor process that now is we you know, we wrote the book on it like how to step by step 113 00:07:50.880 --> 00:07:52.880 How to turn the levers in the gym to make it more profitable 114 00:07:53.680 --> 00:07:56.160 Because it's just like also when you interact with all these gym owners 115 00:07:56.480 --> 00:07:58.240 I'd find so many little things 116 00:07:58.240 --> 00:08:01.120 But that's really cool that you do there like the rest you should start with that's really good 117 00:08:01.440 --> 00:08:04.880 And so I ended up picking like none of these things that I did were original 118 00:08:05.680 --> 00:08:11.440 I just was able to aggregate all of these best practices into like kind of a playbook of this is how you make a profitable 119 00:08:11.440 --> 00:08:15.120 Yeah, basically when I go there, I would say this is what you should do you're a grown-ass man 120 00:08:15.200 --> 00:08:18.080 You can make your own decision yet, but this is what would make you more money if you chose to do it 121 00:08:18.240 --> 00:08:20.400 And usually it adopts because at that point 122 00:08:20.960 --> 00:08:25.840 I was just some kitchen to internet that promised them clients and this was part of part of the problem 123 00:08:25.840 --> 00:08:29.520 The model is that they're like okay, you're gonna sign up 150 people like 124 00:08:31.040 --> 00:08:37.600 So sure right and then they would have they would go from 70 members to 270 members in 21 days and 125 00:08:38.320 --> 00:08:45.920 They're shit broke yep, and it was ugly and they were not happy and I was like I'm fulfilling my problems here 126 00:08:46.640 --> 00:08:49.680 Even though you tell them about that on the front end and that's a real issue 127 00:08:49.680 --> 00:08:53.760 I mean anybody going growing that faster you think you want a lot of customers 128 00:08:53.760 --> 00:08:55.760 You may not want a lot of customers right away 129 00:08:56.160 --> 00:09:00.560 No, and they couldn't I mean and typically and unfortunately a lot of the guys who were trying to ask me were not 130 00:09:00.560 --> 00:09:06.960 Operation Strongest by the truck and so they were looking for a zero dollar down, you know, totally done for it 131 00:09:06.960 --> 00:09:11.760 Like no risk out of pocket and be like and that's what you get. It's you're gonna have somebody's gonna come in and 132 00:09:12.080 --> 00:09:14.640 Sell their other asses off, and so that's what we did 133 00:09:15.520 --> 00:09:19.440 And we're doing three four hundred thousand dollars a month very slim margins though 134 00:09:20.160 --> 00:09:25.200 Because we had I had flights hotel flights for toes. Yeah, a lot of time out there 135 00:09:26.480 --> 00:09:28.240 Daily for their car 136 00:09:28.240 --> 00:09:33.200 I had the food like there's just a lot of stuff that I had to cover and so when I did it it was super profitable 137 00:09:33.200 --> 00:09:38.480 Well, you know when I had when I had to scale the team it was less so and then it kind of started to have heroin 138 00:09:38.800 --> 00:09:42.240 There's three or four months into like when we were like really scaling had eight guys go now 139 00:09:43.040 --> 00:09:46.960 I had two gym owners in a week get up in the middle of every class for a day 140 00:09:48.320 --> 00:09:50.320 Tell all the clients to refund 141 00:09:50.320 --> 00:09:54.400 Because they weren't holding money. They were like I can't deal with this. Just go home 142 00:09:55.120 --> 00:09:59.520 And refund and I'd already paid for I'd already covered everything like we were gone 143 00:09:59.840 --> 00:10:02.720 And so we ended up getting is huge wait 144 00:10:02.720 --> 00:10:06.720 I did like a hundred thousand and refunds like a week and I was like oh my god at that time for me 145 00:10:07.520 --> 00:10:10.560 Big amount money with slim margin. That's it. That's big 146 00:10:11.120 --> 00:10:13.120 That's why rational design doesn't work like I 147 00:10:13.760 --> 00:10:16.480 planning on getting I was getting planning getting out of the gym industry 148 00:10:16.480 --> 00:10:21.600 I was like, you know what and I sold my gyms at this point, you know, I sold the six and I was like, okay 149 00:10:22.640 --> 00:10:26.000 You know what we're really getting marketing and sales Layla is my wife now 150 00:10:26.320 --> 00:10:29.040 Like she lost 85 pounds of fitness competitions all that stuff 151 00:10:29.040 --> 00:10:32.000 And I was like why don't you be the face and then I'll run the sales of the marketing behind it 152 00:10:32.000 --> 00:10:35.200 We'll just swing fitness brand and that started to work 153 00:10:35.280 --> 00:10:37.440 And so we started doing a thousand days and 14 days 154 00:10:37.760 --> 00:10:43.200 But mine and I was like cool. I take my timeline on this. Let's go back the timeline. So you meet Russell 155 00:10:44.080 --> 00:10:50.480 You speak on stage someone gives you $5,000. All of a sudden you have a bunch of people out helping people get a bunch of customers 156 00:10:50.800 --> 00:10:53.120 So this starts to break down. This was one year 157 00:10:53.600 --> 00:10:57.040 So I joined Russell's thing end of January. I spoke in February 158 00:10:58.000 --> 00:11:01.600 I got my first 5,000 a deposit in like March 159 00:11:02.400 --> 00:11:08.000 I went out and launched my first three gyms myself back to back to back in the same area. It just worked out that way 160 00:11:08.720 --> 00:11:10.240 in 161 00:11:10.240 --> 00:11:12.240 June, July, August 162 00:11:12.240 --> 00:11:14.240 and then 163 00:11:14.240 --> 00:11:16.240 At that point I decided this is what I'm going to do 164 00:11:16.800 --> 00:11:21.280 Sold my gyms all of them within 90 days of that point. I was a hundred percent out 165 00:11:21.680 --> 00:11:25.200 I decided in August and I was a hundred percent out by first week in November 166 00:11:26.320 --> 00:11:28.640 Of the gyms and then at that point 167 00:11:29.600 --> 00:11:32.880 I took a pause on the launches because I was done with selling gyms 168 00:11:34.080 --> 00:11:38.880 I took a pause in October and November and then December 169 00:11:40.400 --> 00:11:45.680 I started with six guys. So I was like cool. This is the model and we got six sales guys 170 00:11:45.680 --> 00:11:48.240 We started in December and they all started the day after Christmas 171 00:11:48.960 --> 00:11:54.560 That was one calendar year and then the next three months of the next year or four months next year is when we were 172 00:11:54.800 --> 00:11:58.160 When we were really kind of scaling and doing HMs or whatever and then 173 00:11:58.640 --> 00:11:59.920 April 174 00:11:59.920 --> 00:12:03.680 End of March beginning of April's when I was like I saw the radio was like this is 175 00:12:03.840 --> 00:12:07.120 I don't like this model like this is like the revenue was great and I was just like but 176 00:12:07.520 --> 00:12:09.040 It just had too much hair on it and I yeah 177 00:12:09.040 --> 00:12:12.560 I had people being upset with me for filling their gym up and if I if they're like well 178 00:12:12.560 --> 00:12:15.920 I can only take 50 customers. I'm like well, I'm not gonna. It's not worth it for me alone 179 00:12:15.920 --> 00:12:19.840 It's like so a hundred or more like you have to be able to take a hundred or more clients 180 00:12:20.320 --> 00:12:24.800 Which is you know 50 or 60 grand, you know for us to cover everything and make profit. So 181 00:12:25.520 --> 00:12:29.520 Anyways, at this point now. This is March April 182 00:12:30.800 --> 00:12:32.880 I was like Layla. Why don't we start selling your thing? 183 00:12:32.880 --> 00:12:37.600 Let's just try that and then we can take the eight sales guys bring them into a thousand a day each and do you know 184 00:12:37.760 --> 00:12:42.000 250 a month, but it's a higher margin. Yeah great. This model works like we can do this 185 00:12:42.480 --> 00:12:46.160 And so I actually had eight gyms first of all lunch and bang and so I called them up 186 00:12:46.160 --> 00:12:50.000 And I was like hey excited to plan them out, you know, it's ideally immediately you know 187 00:12:50.160 --> 00:12:55.600 Which is another operational pain. Yes, but you have to be exact amount of gyms as you do sales people 188 00:12:55.600 --> 00:13:00.640 Or you have a guy on the bench doesn't work the eight guys and so I called them up and they were like dude 189 00:13:01.200 --> 00:13:06.160 I need you to come like I'm I'm matched on my credit cards. I've remorried way front as my house 190 00:13:06.160 --> 00:13:10.240 But my life facing to this like you have to come like we're like we're gonna go out of business 191 00:13:10.400 --> 00:13:12.400 And I was like well, I don't have to come 192 00:13:13.200 --> 00:13:14.800 Like first off 193 00:13:14.960 --> 00:13:17.200 But that makes you something good, but I just 194 00:13:17.200 --> 00:13:19.200 Yeah 195 00:13:19.440 --> 00:13:22.880 Like I can't what we talked about I mean at least you're not a liar 196 00:13:26.240 --> 00:13:28.240 And so finally is you know the phone call 197 00:13:30.160 --> 00:13:32.960 I was like, you know, I mean I'll show you how to do this 198 00:13:33.440 --> 00:13:37.360 Consider this my going out of business sale like I'm getting out of the gym industry. I'm just gonna focus on fitness 199 00:13:37.600 --> 00:13:39.360 I'll show you everything I've got 200 00:13:39.440 --> 00:13:45.440 They were like, okay, well how much and I at the time picked the highest number I could think of which was six thousand dollars 201 00:13:45.680 --> 00:13:47.680 That was like the highest 202 00:13:48.160 --> 00:13:52.560 That was ridiculous and I was like I'm giving you the thing that I'm doing four hundred thousand a month 203 00:13:52.560 --> 00:13:54.880 And we give you everything like everything 204 00:13:55.520 --> 00:13:57.840 I was almost feeling that guys getting ripped off on some 205 00:13:58.880 --> 00:14:05.520 And they were like the first guy was like yeah, and I was like really and I picked a big number because I also didn't want to do it 206 00:14:06.000 --> 00:14:10.000 Yes, I didn't want to have to like go make a court. I was just like let me just get him to say no 207 00:14:10.000 --> 00:14:12.000 So I can move on to the next call 208 00:14:12.160 --> 00:14:15.680 And he said yes, and I was like, oh, and so I had seven more calls 209 00:14:16.560 --> 00:14:20.960 And they all say yes, and so the first ones that six next one I was like, hey, he's like, okay 210 00:14:22.000 --> 00:14:25.920 Yeah, the next one I was like, uh, it's uh 10. They're like okay, but and so 211 00:14:27.360 --> 00:14:29.440 Anyways, we went up to 12 by the end of the day and then 212 00:14:30.400 --> 00:14:32.400 The next hundred we sold a 12 and the next 213 00:14:32.800 --> 00:14:35.360 2,900 we sold 16,000 214 00:14:36.320 --> 00:14:41.520 It's interesting. It's so I mean would we think about prices these stuff the stuff is just 215 00:14:42.000 --> 00:14:44.880 Pulled out of thin air and was the market demands, right? 216 00:14:45.200 --> 00:14:47.200 It's much someone's willing to pay 217 00:14:47.200 --> 00:14:50.480 Yeah, Dan Kennedy, whatever your price is whatever you can save that crack this month 218 00:14:53.440 --> 00:14:56.080 So I looked at Layla after we did $60,000 in a day 219 00:14:56.720 --> 00:15:00.080 And I looked at her and I was like babe we're still in the gym and she was like we were just doing it 220 00:15:00.400 --> 00:15:02.960 And so for me, I think those were the biggest lessons was 221 00:15:03.760 --> 00:15:05.760 There's different ways to monetize a skill set 222 00:15:06.320 --> 00:15:10.640 Right like we had this skill set and I've had I had it in a gym opportunity vehicle 223 00:15:11.200 --> 00:15:15.920 Like me running locations. I had it in a done for you sales team opportunity vehicle, which is different 224 00:15:16.480 --> 00:15:19.680 And then I had it in a information package kind of done with you 225 00:15:20.320 --> 00:15:25.760 Version and that is when if that's when everything just took off and we did 180,000 our first month 226 00:15:26.160 --> 00:15:28.800 We went from there we did 10 million in our first 10 months 227 00:15:29.360 --> 00:15:31.360 Mom of business 228 00:15:31.600 --> 00:15:33.360 In total revenue 229 00:15:33.840 --> 00:15:37.760 It was a rocker ride and I mean a big part is the first guy she's signed on 230 00:15:39.040 --> 00:15:41.920 The lowest guy made 38,000 in their first 30 days 231 00:15:42.480 --> 00:15:47.440 James, right? So I mean like and they called me up and they're like what do you have what else do you have also? 232 00:15:48.640 --> 00:15:50.640 It's like I have this other program called gym legacy 233 00:15:52.960 --> 00:15:58.160 So in reality like so you know, I started to mastermind for franchises real low ticket 234 00:15:58.320 --> 00:16:01.760 Not very expensive for franchises to come in because they're not you franchise 235 00:16:01.760 --> 00:16:04.400 These aren't used to the mastermind thing so I just started that up a couple weeks ago 236 00:16:04.800 --> 00:16:07.600 Franchisey mastermind for anyone that wants to take a look at that 237 00:16:08.000 --> 00:16:13.840 But you were in Russell's inner circle rush. It's it was a mastermind as you're going through this process 238 00:16:14.160 --> 00:16:17.760 How much and he's a brilliant guy how much should he help you 239 00:16:18.720 --> 00:16:25.520 Unpackage some of this stuff or think differently because I see so many people struggle because they're in the gym industry 240 00:16:25.520 --> 00:16:27.520 They think that's what they're good at 241 00:16:27.520 --> 00:16:32.160 But they're they just don't have the practice or the mental ability to think differently 242 00:16:32.960 --> 00:16:37.760 So I'll say two things. I've been a part of multiple masterminds. I think the best masterminds 243 00:16:38.320 --> 00:16:40.320 Well, I won't say that 244 00:16:41.120 --> 00:16:46.480 There's different types of masterminds that will give you different things and so if you're in an industry specific mastermind 245 00:16:47.200 --> 00:16:52.800 Those almost always pay for themselves like it's it's almost impossible to not know what all the best practices are 246 00:16:52.880 --> 00:16:58.960 What's working right now new plays new hooks new offers that are working today from a group that's working again 247 00:16:59.280 --> 00:17:05.120 And in an industry typically they're separated geographically so there's not a lot of I mean some people are always scared 248 00:17:05.120 --> 00:17:08.880 So you might say but most people are very giving and in our community we give a lot so they give a lot 249 00:17:09.600 --> 00:17:12.640 I think those are really like incredibly valuable 250 00:17:13.520 --> 00:17:20.480 On the flip side when you go across industries that's also very valuable but in different ways because you have people in like hotels charging deposits 251 00:17:20.480 --> 00:17:25.440 You're like I wonder if I could use that in the fitness world like how can I how can I use that in my you know 252 00:17:25.440 --> 00:17:30.160 I mean, and so I think you get more creative input and I come out with more ideas from a 253 00:17:30.720 --> 00:17:36.160 More general mastermind than I do from a specific one, but the specific one aren't ideas like all right 254 00:17:36.160 --> 00:17:42.480 When we go home we're gonna do these 10 things, you know, that's that's the back. It's very tactical industry specific is very tactical 255 00:17:42.480 --> 00:17:47.680 You're going to get stuff there that's super tactical relevant like you said to today. You make money tomorrow 256 00:17:48.240 --> 00:17:54.880 Exactly and then you're in some of these that are not industry specific where you might even feel like a fish out of water because it's so different 257 00:17:55.280 --> 00:18:00.720 But I like being a part of those at different times because it does it challenges the way you think and people are 258 00:18:01.040 --> 00:18:05.120 Taking what they know in their industry and giving you ideas and vice versa 259 00:18:05.520 --> 00:18:07.840 I mean that forces you to get better 260 00:18:07.840 --> 00:18:12.320 But you have to be intentional on on doing it and getting something out of it right? Yeah 261 00:18:12.880 --> 00:18:16.240 The doers of the you know, they're only 20% of the people that are there 262 00:18:16.960 --> 00:18:22.240 Yeah, like 60% are there because they just want to brag and the other 20% inside up and known as why because they just want friends 263 00:18:22.640 --> 00:18:25.680 I mean, so I talked to Russell about this and he was like Bill Glazer had told him 264 00:18:26.240 --> 00:18:30.000 That the way masterminds break down is like he's got I think I can't remember the exact numbers 265 00:18:30.000 --> 00:18:35.440 But it was like you've got 10% they just always want more and are just like massive executors and just like want to rip as much value out of them 266 00:18:35.920 --> 00:18:40.000 Execute. Yeah, it's like and then a lot of people just want to breath 267 00:18:40.320 --> 00:18:42.640 They want a place that they can bring so a strong word 268 00:18:42.640 --> 00:18:46.080 They just want a place that they can like be candid about what they're doing and have people say like dude 269 00:18:46.080 --> 00:18:49.840 That's awesome because a lot of us especially business owners is really lonely. You can't be like 270 00:18:50.080 --> 00:18:52.240 Do we fucking crush less because your customers don't 271 00:18:53.200 --> 00:18:56.240 Well, I really don't care. Thank you 272 00:18:57.040 --> 00:19:03.040 How much money did you make out like and a lot of friends of your friends and your circle of friends wherever you are really don't care 273 00:19:03.840 --> 00:19:08.720 Yeah, especially if you're doing better than them. It's like it just makes them and also it doesn't make them free either so 274 00:19:09.680 --> 00:19:12.640 So there's there's that unless they're really good friends in which case it doesn't 275 00:19:13.040 --> 00:19:15.680 100% that's exactly that's any that well 276 00:19:15.760 --> 00:19:16.960 That's how we just 277 00:19:16.960 --> 00:19:21.200 Found out how you have really good friends that that's the lipist test. Did you ever get concerned? 278 00:19:21.360 --> 00:19:25.840 I mean, I know you're not a scarcity mindset type guy, but you're teaching people the playbook 279 00:19:26.240 --> 00:19:33.760 How do you reconcile teaching people what to do kind of given them the secret sauce and having people rip you off because that's what happens 280 00:19:34.320 --> 00:19:37.520 Yeah, um if you're learning from me, you're inherently admitting that you're not about 281 00:19:39.520 --> 00:19:44.640 True or least if you're copying my shit, you know, I mean like you're an early but and so the other thing is 282 00:19:45.520 --> 00:19:49.120 The best move to make would be to copy our stuff, right 283 00:19:50.640 --> 00:19:52.640 And once you're the industry leader 284 00:19:52.880 --> 00:19:58.640 My strategic best move is to buy everyone's courses. There's no rip out anything that's good immediately distribute 285 00:19:59.280 --> 00:20:04.880 And then make you a relevant that's how you just defend the top the guys who can't stay on top don't do that 286 00:20:05.280 --> 00:20:08.640 Yep, and that and then they become a relevant over time, right 287 00:20:09.120 --> 00:20:13.120 And it's usually because of ego. It's like now our stuff's better. I'm like. I don't care where it comes from 288 00:20:13.600 --> 00:20:18.560 Like if messenger but some guys got a good messenger course cool go find it information is information, right 289 00:20:19.600 --> 00:20:23.280 It is what it is. So I'm also not immune to the fact that like I know what industry were in 290 00:20:23.840 --> 00:20:28.960 Information is very high margin, but has massively declining value. It has an expiration date on it 291 00:20:29.440 --> 00:20:34.800 And so the information always has to be fresh always has to be cutting edge in order to have the value that you're charging for 292 00:20:35.440 --> 00:20:41.920 And so we pride ourselves on we release new plays every 14 days in our community 293 00:20:42.560 --> 00:20:47.280 Most guys have like quarterly things that they'll maybe do and most times is recycled content 294 00:20:48.000 --> 00:20:51.360 And so that's how we've been able to continue to provide value 295 00:20:52.400 --> 00:20:55.360 And basically I built our our highest level 296 00:20:56.960 --> 00:20:59.040 Taking out everything I hated about masterminds for myself 297 00:20:59.520 --> 00:21:04.080 I don't want to do hot seat right because I don't care what none of these nine attend to these guys are because they're not 298 00:21:04.160 --> 00:21:09.920 They're not making as much money, you know, maybe like I just so I was like I want just give me the just give me the best stuff 299 00:21:10.640 --> 00:21:14.880 And so we just would rip out all the best practice this stack them in terms of is it lead generation? 300 00:21:14.880 --> 00:21:20.720 Is it lead nurtures it sales is a fulfillment or ascension and then we'd be like cool who's struggling with these things 301 00:21:20.720 --> 00:21:24.000 All right, this is your these are the things that are working right now. This is what you need to do 302 00:21:24.400 --> 00:21:28.320 So we cycle through what we're releasing and it keeps our content very fresh 303 00:21:28.800 --> 00:21:34.240 But yeah in terms of so what I'm hearing so part of what you you have is you have a community of 304 00:21:35.040 --> 00:21:38.160 People that are paying you for for the stuff that you're providing them 305 00:21:38.400 --> 00:21:44.080 But out of that community you're extracting the best stuff that they're learning out there as well 306 00:21:44.480 --> 00:21:49.520 And then you packed it up give it back to them based off of what you're getting it from the communities 307 00:21:49.520 --> 00:21:51.280 That right? Yep, and we run 308 00:21:52.160 --> 00:21:54.640 Usually about two tests a month two big tests 309 00:21:54.720 --> 00:21:57.920 I mean we run zillions of split tests and stuff from a marketing standpoint but like 310 00:21:58.240 --> 00:22:04.160 Conceptual tests of like let's try this new upsell. Let's try this new offer. Let's try this new 311 00:22:04.960 --> 00:22:09.600 Backend thing or whatever it is do you know what I mean and and that stuff that will regularly 312 00:22:10.960 --> 00:22:15.280 Really like we have another one that's kicking off on Wednesday, which is super cool and fun for online stuff 313 00:22:15.280 --> 00:22:20.160 So like we're we're always just trying things and I would say you know two out of three don't 314 00:22:20.800 --> 00:22:26.320 Demonstrate a market improvement and so sometimes people just release things because it's new mm-hmm 315 00:22:27.520 --> 00:22:32.560 And so when we do our beta test to come on beta test we'll take 20 gyms minimum 316 00:22:32.720 --> 00:22:36.800 Which is bigger than like most of the competitors that like their entire basics, but that's okay 317 00:22:36.960 --> 00:22:38.960 So take 20 gyms and 318 00:22:39.200 --> 00:22:41.920 We'll take it from representative markets. I'll take winners 319 00:22:42.320 --> 00:22:47.040 I'll also take losers and when I say that I say that nicely, but like I'll take my bottom 30% and my top 320 00:22:47.120 --> 00:22:51.200 Because a lot of times if you just do tests for the top 10% it's not good data because they just execute anyways 321 00:22:51.600 --> 00:23:00.160 Right, so it's like I need a good idea of whether this is repetitive and then I have to make a training and deliver that training 322 00:23:00.160 --> 00:23:06.320 The same way I would to everyone at scale because if I if I do a different delivery back is if I do one-on-one coaching for all these 20 guys 323 00:23:06.560 --> 00:23:10.320 Again, yeah, it's not gonna be the same as what everyone else is gonna consume so I have to make that again 324 00:23:10.560 --> 00:23:12.800 Provide it for them and then say good luck 325 00:23:13.760 --> 00:23:15.760 Let's track the stats in 30 days 326 00:23:15.920 --> 00:23:17.200 Most times 327 00:23:17.200 --> 00:23:23.040 Most tests don't make a big difference and I think that's one thing that most markers everyone admits like just let's test the two button colors 328 00:23:23.520 --> 00:23:25.520 Most times nothing happens 329 00:23:26.960 --> 00:23:32.960 So it's really trying to figure out which of these which of these levers are the ones that really move the needle and a lot of times 330 00:23:32.960 --> 00:23:35.920 You just don't even pick the right lever to try and move 331 00:23:36.800 --> 00:23:39.520 Which is just a fun thing for us, but when we do find one 332 00:23:40.080 --> 00:23:41.840 We'll take it out we'll package it and then we'll just 333 00:23:42.400 --> 00:23:44.400 Distribute it through the entire network 334 00:23:46.000 --> 00:23:51.760 Pants Eric here. I hear from a lot of people that they're looking to buy their first brand or maybe their second or third brand 335 00:23:52.000 --> 00:23:55.840 And they're not sure where to start or they're not sure if they're looking in the right places 336 00:23:56.080 --> 00:23:57.360 Well, that's where I come in 337 00:23:57.440 --> 00:24:02.160 I help people find really good brands and if you're thinking about your second or third or maybe your first brand 338 00:24:02.640 --> 00:24:06.960 Let's set up a time to talk you can go to talk with Eric dot com 339 00:24:07.520 --> 00:24:12.240 That's E R I K talk with Eric dot com now back to the show 340 00:24:18.160 --> 00:24:23.360 Now a lot of franchisees out there they they're used to using the traditional agencies 341 00:24:23.360 --> 00:24:25.360 And this is kind of in in my mind 342 00:24:25.920 --> 00:24:28.800 This is given them an inside look into 343 00:24:29.360 --> 00:24:35.920 Facebook ads and any type of advertising and copy which is the words on a page or words on a Facebook ad 344 00:24:36.560 --> 00:24:39.200 And and you're kind of getting the inside scoop here 345 00:24:41.040 --> 00:24:46.800 This is the stuff that most franchise orers don't know about and don't care about 346 00:24:47.520 --> 00:24:49.520 They have a CMO that is 347 00:24:50.560 --> 00:24:58.320 Used to placing ads somewhere hiring an agency to do it and usually it's a big agency and usually things are done in 348 00:24:59.120 --> 00:25:03.360 Just you know plug and play and then you can get into more boutique 349 00:25:03.680 --> 00:25:06.800 Agencies or even bigger agencies that really 350 00:25:07.280 --> 00:25:14.160 Understand what's going on in the industry and I think that's what we're talking about here are that there's a big difference between 351 00:25:14.880 --> 00:25:19.280 An agency that places an ad and they really don't know what goes on behind it 352 00:25:19.280 --> 00:25:22.880 And they're dealing with a franchise or who doesn't understand the social world the digital world 353 00:25:23.120 --> 00:25:30.640 They don't understand copy they don't understand video that don't understand any of that stuff and that combined with a bad agency 354 00:25:31.360 --> 00:25:33.920 Is a recipe for very mediocre results 355 00:25:34.480 --> 00:25:42.000 And so when you get a franchise or that has a really good CMO that understands the current digital world 356 00:25:42.480 --> 00:25:50.560 Environment and they work with people like Alex and some of the other guests that I've had on that really understand marketing 357 00:25:51.040 --> 00:25:57.040 That's when you have a very powerful combination and I know that you've seen it with different franchise out there 358 00:25:57.440 --> 00:26:02.400 And sometimes if you know, this is a franchise show franchise. I love franchising franchises are great 359 00:26:03.120 --> 00:26:09.440 But they're also it's it's also that double-edged sword you are restricted in in some of these areas 360 00:26:09.440 --> 00:26:16.000 And so can you just give a little bit of what you see and and talk to new people that are thinking about 361 00:26:16.640 --> 00:26:24.720 Starting a franchise as a franchise or what kind of mindset should they have in terms of marketing to help their franchise ease with this type of stuff 362 00:26:25.440 --> 00:26:31.680 This is we're talking about Zorch right franchise ores. Okay, cuz a franchise these they're stuck right now whether they have something really good or really bad 363 00:26:32.160 --> 00:26:37.280 They're stuck, but they're people out there because I help people Bader was cooling and I we have a we have a group 364 00:26:37.280 --> 00:26:43.120 Where we help young franchise oars or people that want to buy a franchise we help them start and scale their franchise 365 00:26:43.600 --> 00:26:47.760 So talk to that person that's just getting started in franchising as a franchise or 366 00:26:48.880 --> 00:26:50.880 You have to know acquisition 367 00:26:50.880 --> 00:26:57.760 That's I mean, that's my that's what do you say? What if they don't even know what acquisition means because acquisition so common to you and I 368 00:26:58.240 --> 00:27:01.440 But to the average person out there. What do you mean acquisition? 369 00:27:02.800 --> 00:27:10.480 Lee Jen show Jen appointment Jen, you know everything that gets from click to show or whatever your vehicle is for conversion for like for your sale 370 00:27:10.480 --> 00:27:12.080 Whether it's a phone sale or an in-person sale 371 00:27:13.600 --> 00:27:16.960 You have to know the numbers inside and out for your model 372 00:27:17.280 --> 00:27:22.160 You should have already squeezed all of the juice out of your model before trying to put it together 373 00:27:22.160 --> 00:27:27.360 I can't say the amount of Jim specifically where I know somebody who's got a struggling gym and says I think I want to franchise 374 00:27:27.360 --> 00:27:29.600 I'm like you can barely run one location 375 00:27:30.560 --> 00:27:34.160 And you want to franchise and sell this bag really 376 00:27:35.120 --> 00:27:38.720 They also have to understand that like the business model has to be unique in some way 377 00:27:38.720 --> 00:27:41.520 Otherwise, you're just gonna get that like why would they buy yours? 378 00:27:41.840 --> 00:27:45.040 By like it has to be unique in a certain way in order for people to buy into it 379 00:27:45.200 --> 00:27:47.200 And also for the general population to 380 00:27:47.200 --> 00:27:50.640 Want to have a just like have for you to make a disproportionate amount of money compared to other 381 00:27:51.120 --> 00:27:54.400 Franchises in the same space. I think the fitness 382 00:27:54.880 --> 00:27:57.120 Franchise world is very saturated and I think they're 383 00:27:57.760 --> 00:28:00.080 I think there's gonna be a nice consolidation that's happening right now 384 00:28:00.720 --> 00:28:05.600 They're absolutely isn't there's there's always opportunity within within all of this, but yeah 100% 385 00:28:06.160 --> 00:28:11.040 And understanding that what your level of execution is cut that into maybe 386 00:28:11.520 --> 00:28:15.680 35% of what you're doing and that's what the level of execution you get from a franchisee 387 00:28:16.160 --> 00:28:21.280 And the moment you start pointing blame and saying you're not doing enough is the moment you lose the power in your business 388 00:28:21.680 --> 00:28:25.760 Yep, because the moment you start blaming franchisees is the moment you stop innovating to try and solve their problems 389 00:28:25.920 --> 00:28:30.560 Yep, and so it's just not good enough to say they just didn't do it 390 00:28:31.280 --> 00:28:33.280 There's nothing to say 391 00:28:33.360 --> 00:28:39.600 That's just saying you about that. So what like what can we control like what condition did I create that tolerated this level of performance? 392 00:28:39.600 --> 00:28:41.200 How can I 393 00:28:41.200 --> 00:28:46.080 Make the training better? How can I make the onboarding and screening better? How can we make the qualifications higher? How can I you know 394 00:28:46.080 --> 00:28:48.080 Whatever it is is we have to ask better questions 395 00:28:49.120 --> 00:28:53.600 So because ultimately the end of the day, especially with the franchise, it's all about you to production right they have to make money 396 00:28:53.920 --> 00:28:59.520 Now if you like it's easy to sell your first 10 friends that you know that senior quote business success 397 00:29:00.000 --> 00:29:01.520 Your first 10 locations 398 00:29:01.840 --> 00:29:05.360 Everyone can do it. That's why there's a zillion 10 to 20 location franchises 399 00:29:06.080 --> 00:29:10.640 Right, and they can never make it past that because they're actual business model sucks. Yep 400 00:29:11.520 --> 00:29:16.480 And that's what it is, you know, and so you have to make sure the actual like this is just fundamentals baseball 401 00:29:16.480 --> 00:29:23.440 This is blocking and tackling like is the training for every position dialed in is it like do you have a culture that you like 402 00:29:23.680 --> 00:29:25.680 Chick-fil-A has done it. Well, they don't 403 00:29:26.400 --> 00:29:31.680 No, but we'll use that as an example because they're they're they're a kind of a franchise 404 00:29:31.760 --> 00:29:37.920 But yeah, that mean the culture holy cow right and and they know exactly who they're who they're avatars 405 00:29:37.920 --> 00:29:42.560 So it's like unless you have a unique avatar right or unique way of reaching it or unique monetization model 406 00:29:42.960 --> 00:29:47.600 We're unique you know acquisition model now part part with acquisition is it's easy to copy 407 00:29:48.400 --> 00:29:51.120 It's it's very easy to copy which means I think 408 00:29:51.680 --> 00:29:56.160 That you need to be on top of it because I had a conversation with franchise or last week 409 00:29:56.640 --> 00:29:58.960 Uh, like 22 locations kind of a smaller franchise or 410 00:30:00.000 --> 00:30:02.880 And it's like well, give me numbers on this this and they say I honestly don't know 411 00:30:03.280 --> 00:30:07.840 So I was like, how do you have a business? You know, it was like we don't know anything of the latent stuff 412 00:30:07.840 --> 00:30:10.320 And I was like, okay, then what do you we do? 413 00:30:10.880 --> 00:30:12.560 It's like, you know, you 414 00:30:12.560 --> 00:30:16.720 Literally said we pretty much do the same thing as everyone else like with the you know the fitness nutrition 415 00:30:16.720 --> 00:30:18.560 Kind of like I said I was like, which is the same thing. I was like 416 00:30:19.520 --> 00:30:22.240 I mean, I didn't say this and if you are listening to this the person 417 00:30:22.800 --> 00:30:25.280 This was this was months ago this conversation 418 00:30:26.000 --> 00:30:28.000 Years ago 10 years ago 419 00:30:28.400 --> 00:30:30.800 And um, how can you make decisions? 420 00:30:31.280 --> 00:30:34.480 People know me who know me well enough know that like we're 421 00:30:34.720 --> 00:30:38.000 Do not pours, you know, like all we do is track everything 422 00:30:38.560 --> 00:30:40.720 And then all of a sudden people think you make great calls 423 00:30:41.440 --> 00:30:45.600 When you have good decisions, but good decisions are based on good data and then I'll like you know what 424 00:30:45.840 --> 00:30:48.720 The pandemic we have right now is a perfect. I'm not going to go in that direction 425 00:30:48.720 --> 00:30:51.440 But I'm just saying it's a perfect example of how 426 00:30:51.920 --> 00:30:55.040 Not having good quality data leads to poor decisions 427 00:30:55.360 --> 00:31:01.520 And so different people are coming to different conclusions based on what they perceive the value and the validity of the data a bit 428 00:31:01.840 --> 00:31:02.880 Yep 429 00:31:02.880 --> 00:31:05.840 That was a middle string. That was a middle of the road. No, it's true 430 00:31:06.320 --> 00:31:10.720 Whatever it is whatever side if you like extreme on both sides. That's right 431 00:31:11.520 --> 00:31:16.080 Yeah, it's based on the data that you believe to be true. Yeah, most people think that people dying is back 432 00:31:16.560 --> 00:31:20.160 Like most people agree with that most people also think killing the economy is also bad 433 00:31:20.720 --> 00:31:24.560 And so if given the correct information most people values are pretty much aligned 434 00:31:24.560 --> 00:31:28.160 It's just to to what degree are we waiting these metrics? What's the truth on that? 435 00:31:32.000 --> 00:31:34.000 We don't need to go there 436 00:31:34.320 --> 00:31:38.320 Yeah, I'll reel it back but the big thing is if you don't know your like if you're starting a franchise 437 00:31:38.320 --> 00:31:42.640 And you don't know your lifetime value cost of acquisition. You're monthly churn 438 00:31:42.640 --> 00:31:48.560 You were different levels of like your value letters your different upsells the way that you I mean it's that there's just 439 00:31:48.560 --> 00:31:53.040 There's so many things that if you don't like like even your page conversion measure like if you don't know these things 440 00:31:54.160 --> 00:31:57.280 If you don't have another way and on the flip side of that there are some 441 00:31:58.240 --> 00:32:04.000 Acquisition only franchise or they just learn how to run Facebook ads. Yeah, and then they're like cool 442 00:32:04.000 --> 00:32:06.720 I just run Facebook ads to a gym. I own a franchise 443 00:32:07.680 --> 00:32:11.200 Again, and they usually are not good operators. They don't know how to build culture 444 00:32:11.200 --> 00:32:16.480 They don't know how to lead teams. They don't have unique backends. They typically don't make enough for customer, right and then 445 00:32:18.560 --> 00:32:22.480 There's a point that I was going to make here camera. Where was well? Well, this is all system 446 00:32:22.480 --> 00:32:25.760 This is all knowing your numbers. This is all knowing what you should give your number 447 00:32:26.400 --> 00:32:28.400 Yeah, you gotta know you gotta know what back ends. Yeah 448 00:32:29.280 --> 00:32:35.440 Because you don't in franchise and again, we're speaking to when we're going to get back to franchise these but franchise these 449 00:32:35.440 --> 00:32:40.080 You can you can I mean you can dial this on in yourself if you're franchise or it doesn't 450 00:32:40.400 --> 00:32:43.920 But if you're starting to Frank if you're a mom and pop wanting to franchise your business 451 00:32:44.320 --> 00:32:46.960 You don't have to have something that is proprietary 452 00:32:47.280 --> 00:32:53.600 You don't have to have something that is super unique what you need to have is a good model itself that you're working on right now 453 00:32:53.680 --> 00:33:00.240 That makes money that does well and then you need to understand that you are not just scaling what you have now 454 00:33:00.240 --> 00:33:05.000 But now you're in the business of helping other people franchise there get get into franchise 455 00:33:05.080 --> 00:33:10.680 And then you you're now their coach you're their cheerleader and you're the one that should have all the answers 456 00:33:10.680 --> 00:33:14.280 So if you don't know it for your own business right now spend a year 457 00:33:14.840 --> 00:33:21.560 Get that dial then note in the ins and outs of your business so that you can help somebody else do the same thing 458 00:33:21.880 --> 00:33:29.080 One of the other things along with generating leads is I see franchise wars and franchises. They don't have really solved systems on 459 00:33:29.720 --> 00:33:31.720 consumer facing 460 00:33:32.600 --> 00:33:38.680 The follow the nurturing to help a lead become an actual customer and I know that you're you're beast at that 461 00:33:38.760 --> 00:33:44.920 So talk about that for a little bit this problem has been a problem for since I had my first gym right when I work the leads 462 00:33:45.480 --> 00:33:51.240 I get three times as many people in the gym as one my employees did and it's because it's just takes a lot 463 00:33:51.320 --> 00:33:53.400 It's just hustle like there's no 464 00:33:53.400 --> 00:33:57.720 Secret to getting leads to show besides just work and repetition so there's four 465 00:33:57.720 --> 00:34:02.920 I'm gonna go real quick on this because there's a lot I can cover so there's four pillars to lead nurtured to get the highest mental 466 00:34:02.920 --> 00:34:08.840 Lisa show we got volume of outreach to the number of times you retouch them the personalization behind the outreach 467 00:34:08.920 --> 00:34:12.040 Which is how catered to the messaging is it for that specific avatar in their goal? 468 00:34:12.680 --> 00:34:20.200 The speed which has two components the speed of from opt-in to first contact and also the speed of response at any point between then and their appointment 469 00:34:20.360 --> 00:34:25.960 So someone messages you they opted in you messaged them but then they ask you a question like am I need to bring my kid or do you take 470 00:34:26.520 --> 00:34:30.520 Adults or whatever right if you they don't get a response and not a timely response 471 00:34:30.520 --> 00:34:35.800 They're gonna already that's gonna be an indicator of the level of service they're gonna get before when they commit and so that will decrease show rate 472 00:34:35.800 --> 00:34:37.800 So speed is two two parts there 473 00:34:38.040 --> 00:34:43.880 And then the fourth one is availability which is probably the secret weapon of what we've been able to figure out with the data science team 474 00:34:43.880 --> 00:34:47.560 That we have on our SaaS company which does all lead nurture which Eric was alluding to 475 00:34:49.080 --> 00:34:53.240 Availability is the single greatest predictor for throughput on a campaign 476 00:34:53.960 --> 00:34:59.320 If you do not have time to meet with prospects you will not get prospects to show if seven eleven 477 00:34:59.320 --> 00:35:02.360 We're only open from seven a.m. to nine a.m. There would not be a lot of customer 478 00:35:02.600 --> 00:35:04.600 It doesn't mean you have to sell all day 479 00:35:04.600 --> 00:35:06.600 The who right who wouldn't want to sell day 480 00:35:06.600 --> 00:35:13.400 But it does mean you have to be available to sell and that is kind of the big difference and the people who who crush and the ones who don't or the ones who are like 481 00:35:13.400 --> 00:35:16.120 I'm available two hours Tuesday ones days 482 00:35:16.760 --> 00:35:22.040 Fridays like well, like how do you think you're gonna hit your goal if you only have six hours of 160 day 483 00:35:22.280 --> 00:35:28.440 You're selling like in what world does that make sense for you when you say you want to hit this extra hundred members in 90 days 484 00:35:29.080 --> 00:35:34.920 Show me logistically how that could even work if you're only closing one out of three and you have two hours three days 485 00:35:34.920 --> 00:35:39.640 We've got six hours so soon. That's that's two hours of closes that you're gonna have per week 486 00:35:40.040 --> 00:35:42.920 How are you gonna grow? It doesn't make any sense and a lot of people even do that math 487 00:35:43.960 --> 00:35:46.920 That's the theoretical side of lead nurture 488 00:35:47.480 --> 00:35:51.320 But the the story for how this started was I won't go too far back 489 00:35:51.320 --> 00:35:54.600 But basically it was the biggest problem that we saw between the highest performers and lost performers 490 00:35:54.920 --> 00:36:00.040 I can double someone's clothes right going from 30% to 60% that takes time and effort, but we can do it right 491 00:36:01.640 --> 00:36:04.840 But my lowest performers on a lead nurture side 492 00:36:05.320 --> 00:36:09.640 We're at 5% their leech showing up versus my highest guys were at 45 for 50% 493 00:36:10.040 --> 00:36:16.520 So I'm talking about a 10x differential through book compared to a 2x differential and including improving someone's closing percentage of skills 494 00:36:17.080 --> 00:36:20.520 And so when I saw that and I saw pick up rates going down over time 495 00:36:20.840 --> 00:36:25.720 I was like, I'll bet you and with with machine learning where it's continuing to improve and get better and the 496 00:36:26.440 --> 00:36:28.840 Aggregate message is going towards messaging 497 00:36:29.000 --> 00:36:33.640 I was like, I'll bet you that we could put something here that could take care of this and so it took us two years 498 00:36:34.440 --> 00:36:36.680 To put the software together that and we ran 499 00:36:37.720 --> 00:36:39.720 I'm a data guy lots of data throw 500 00:36:40.600 --> 00:36:42.920 So a million and a half texts in the last like eight weeks 501 00:36:43.000 --> 00:36:46.040 So like we've a lot of data that we work off of by doing that 502 00:36:46.680 --> 00:36:50.440 We're able to take the biggest pain point or bottleneck in acquisition out of the way 503 00:36:50.920 --> 00:36:53.880 And so now, especially for your franchise or listening to this 504 00:36:54.600 --> 00:36:58.680 For me, I function very similar to you, right? So if I've got 500 facility 505 00:36:58.680 --> 00:37:01.720 We have 600 now, right that are working with this actively and 506 00:37:02.280 --> 00:37:07.080 I know my bottom third of the ones who are going to chart or the ones who are going to struggle my top guys always win 507 00:37:07.240 --> 00:37:08.440 Right because they're winners 508 00:37:08.440 --> 00:37:10.920 But if I could just get all of my bottom third 509 00:37:11.480 --> 00:37:12.520 To 510 00:37:12.520 --> 00:37:16.680 Above average or even just at average that would change the game for me 511 00:37:16.680 --> 00:37:19.080 And that's pretty much what we did with Alan which is the software 512 00:37:19.480 --> 00:37:24.280 So we just plug it right into their website and then it functions as that lead nurture specialist 513 00:37:24.680 --> 00:37:29.880 And it does it for less and it does it better. So leave your train. It is it's it's email follow up 514 00:37:29.960 --> 00:37:33.560 It's it's phone call and it's text messaging. Yep 515 00:37:34.040 --> 00:37:37.240 100% and so I mean honestly we've even looked at the difference 516 00:37:37.960 --> 00:37:41.080 We don't even email anymore not to say that email doesn't work but 517 00:37:41.960 --> 00:37:45.480 If you can get some of the SMS they're gonna do the most response. I mean really 518 00:37:45.480 --> 00:37:48.040 I mean there I mean that's smart. I mean, of course it's smart 519 00:37:48.440 --> 00:37:55.160 A lot of people still don't even know that that smart though Alex. I mean, what's the number why like what percentage of people open up attacks or 520 00:37:55.400 --> 00:37:57.400 View a text versus an email 521 00:37:57.560 --> 00:38:02.440 So there's industry averages and there's new people like on a list. It's 10% if it's the new person opted in for something 522 00:38:02.440 --> 00:38:05.880 You can get 40 you know 30 to 40% off the rates depending on the offer, right? 523 00:38:06.120 --> 00:38:09.160 I'm sorry not off the rates. Excuse me open rates, depending on the offer on a text 524 00:38:09.320 --> 00:38:13.560 It's virtually across the world independent of what you're doing. It's 98% plus of texture open 525 00:38:13.560 --> 00:38:17.560 So right off the map you're getting three times as many people to even see the nurturing process you're doing 526 00:38:17.960 --> 00:38:19.560 And the likelihood they respond is also 527 00:38:20.200 --> 00:38:25.800 Much higher via a SMS compared to an email and so because of that this be a response the communication cycle 528 00:38:26.120 --> 00:38:30.360 It just makes way more sense for us to just get people booked in two minutes rather than email 529 00:38:31.080 --> 00:38:32.920 Two hours later email 530 00:38:32.920 --> 00:38:34.600 And then they forget it goes down the box etc 531 00:38:35.560 --> 00:38:42.600 Hey, we have to say this if you're new to all of this or you're trying just to test some of the stuff out on your own and you're sending text messages 532 00:38:42.920 --> 00:38:45.560 You can get big trouble doing that 533 00:38:46.360 --> 00:38:53.000 No, right? You have to you have to make sure that anyone who's opting in is opting in for pre-recorded phone calls and SMS but like there has to be a disclaimer box 534 00:38:53.800 --> 00:38:57.720 Before they opt in otherwise you get fined 150 dollars in SMS which is 535 00:38:58.360 --> 00:39:03.320 And yeah, it's like a DUI. It's an egregious amount of money on my design to make sure that people actually 536 00:39:04.440 --> 00:39:07.080 So we've covered a lot of stuff right now today 537 00:39:08.760 --> 00:39:15.560 You're doing something that I've never really seen before it's so tell the audience and I know we're running up against a deadline 538 00:39:16.280 --> 00:39:20.920 With our time together. What are you doing and how are you helping and who are you helping? 539 00:39:21.400 --> 00:39:25.960 I'll just talk with the software in general because that's probably it makes more sense is that we plug the gap that 540 00:39:26.280 --> 00:39:28.280 Virtually every brick and mortar business has because 541 00:39:28.760 --> 00:39:31.560 Almost every brick and mortar is based on the old model of acquisition 542 00:39:31.880 --> 00:39:38.040 Which means most people used to ten years ago call the phone number that they saw from an ad or they saw on a website 543 00:39:38.040 --> 00:39:40.600 Or they saw from a flyer or rate or radio or TV or whatever 544 00:39:41.160 --> 00:39:47.400 Or drip mail to get booked for an appointment and then all Jenny at the front desk had to do is pick up the phone and then schedule them 545 00:39:47.800 --> 00:39:52.440 Very simple the problem is marketing shifted and now it's based on digital opt-ins 546 00:39:52.520 --> 00:39:57.400 You got name phone or email and then something has to happen to get them to a schedule and then be shut 547 00:39:57.960 --> 00:39:59.720 right and so 548 00:39:59.720 --> 00:40:05.400 That position is a widely inefficient decision because that person no longer has the skill set to do this new thing 549 00:40:05.640 --> 00:40:11.960 You have to have somebody's really an outbound salesperson to work the leads and work them hard to be heavily incentivized because it's not fun work 550 00:40:12.600 --> 00:40:14.600 To get someone to do it and so 551 00:40:14.680 --> 00:40:20.840 Based on what we see we've been able to cut the manual labor associated with getting the leads to show 552 00:40:20.920 --> 00:40:23.720 Which is actually higher than the cost of the lead itself? 553 00:40:24.120 --> 00:40:30.120 So people are spending 99 to 150 dollars in manual labor to work their leads 554 00:40:31.000 --> 00:40:32.680 Compared to their 10 dollar lead 555 00:40:32.760 --> 00:40:38.600 So even if you get one out of five leads in the door and you cost 10 dollar leads that's 50 dollars in ad spend 556 00:40:38.920 --> 00:40:41.720 But it cost you 150 dollars in labor to get them to shut 557 00:40:42.200 --> 00:40:44.760 And so what we do is we have a performance based business because 558 00:40:45.320 --> 00:40:46.920 I'm a big performance guy 559 00:40:46.920 --> 00:40:48.920 If you're how good we are 560 00:40:48.920 --> 00:40:51.400 And so we get on average 561 00:40:51.400 --> 00:40:53.560 twice as many leads to show 562 00:40:53.560 --> 00:40:59.560 On average our top 20% are three or four times the average which means for every dollar you spend 563 00:41:00.040 --> 00:41:03.720 If you're concerned with your lead costs and getting more people in the door if you can get 564 00:41:04.280 --> 00:41:09.880 Changing this one piece of the pipeline could three or four x the amount of customers you see per month 565 00:41:10.440 --> 00:41:15.720 Simply by working the shit out the lead the right way and that's not dialing a hundred times today 566 00:41:16.120 --> 00:41:21.560 It's messaging that's been split tested a hundred times to get the highest engagements and response rates 567 00:41:22.280 --> 00:41:27.720 And that's you don't have a franchise or that's that's that's compiling all that data from all of their franchise ease 568 00:41:28.120 --> 00:41:35.720 You don't have enough data to actually split test it well yourself based on your one launch or a couple locations that you're running 569 00:41:36.200 --> 00:41:37.720 Yeah 570 00:41:37.880 --> 00:41:43.560 How do they find you like I mean finish that and I want I want to you know share with the audience where they can find you as well 571 00:41:43.640 --> 00:41:45.640 You're just going to use Alan.com. That's the 572 00:41:46.600 --> 00:41:48.600 That's the you are all if you want to go there 573 00:41:48.600 --> 00:41:50.200 Go around and opt in for stuff 574 00:41:50.760 --> 00:41:52.760 But that's that's that's how we do it if you're a gym 575 00:41:53.320 --> 00:41:55.800 You know Lex is are done for your acquisition system 576 00:41:55.800 --> 00:41:57.800 So we just for the first time ever 577 00:41:58.280 --> 00:41:59.800 Basically you're doing all-demandent 578 00:41:59.800 --> 00:42:06.200 So we're marketing and working the leads and so our clients only pay us for human beings who walk in the door 579 00:42:06.680 --> 00:42:10.360 Or pick up a phone call for an appointment depending on the type of businesses 580 00:42:11.000 --> 00:42:15.240 And that's it. That's all so that way you're not paying a retainer. You're not there's no risk 581 00:42:15.320 --> 00:42:18.360 It's just if you know that a client is worth five hundred dollars 582 00:42:19.000 --> 00:42:22.680 Are you willing to pay the cost of the ad plus 40 bucks or 50 bucks? 583 00:42:22.680 --> 00:42:26.280 Whatever it is a little bit different for him shape to get that person on the phone 584 00:42:26.280 --> 00:42:31.000 Which costs you one third or what it would cost to pay someone else and none of the management none of the HR 585 00:42:31.000 --> 00:42:34.280 None of the hiring and firing that's our value profit 586 00:42:36.200 --> 00:42:38.680 You