WEBVTT 1 00:00:00.000 --> 00:00:01.000 What's going on, everyone? 2 00:00:01.000 --> 00:00:02.000 Happy Friday. 3 00:00:02.000 --> 00:00:06.200 Hope you guys are crushing your goals and having an amazing start to your day. 4 00:00:06.200 --> 00:00:10.240 I wanted to bring something up that I got a question from the sales team moving back 5 00:00:10.240 --> 00:00:12.240 around, but they had gotten a couple of times. 6 00:00:12.240 --> 00:00:16.840 So I wanted to address it and I would imagine that you might want the answer to. 7 00:00:16.840 --> 00:00:22.400 It is also a really good kind of like looking in the past case study that you can learn 8 00:00:22.400 --> 00:00:25.000 from, the good, the bad, the ugly, everything that I learned. 9 00:00:25.000 --> 00:00:27.240 So I'm calling this, you know, what happened to hybrid? 10 00:00:27.240 --> 00:00:32.600 I might change the data to like why I stopped talking about hybrid, but basically, so hybrid 11 00:00:32.600 --> 00:00:37.760 for those you don't know was essentially having nutrition and accountability, one-on-one 12 00:00:37.760 --> 00:00:39.240 for people who walk into the facility, right? 13 00:00:39.240 --> 00:00:40.720 This is a really foreign concept. 14 00:00:40.720 --> 00:00:45.000 I just put a name on it because I like branding things to make them new and different. 15 00:00:45.000 --> 00:00:47.560 So that is a good thing most times. 16 00:00:47.560 --> 00:00:54.000 Now once we started marketing aggressively for hybrid, what happened was there was, there 17 00:00:54.000 --> 00:00:59.000 was an online component to it and a remote component because you could, in theory, just 18 00:00:59.000 --> 00:01:03.120 train someone for nutrition and call them accountable to that and they wouldn't even necessarily 19 00:01:03.120 --> 00:01:04.120 need to go to the gym. 20 00:01:04.120 --> 00:01:05.120 Right? 21 00:01:05.120 --> 00:01:06.120 I mean, this is what Weight Watchers has done. 22 00:01:06.120 --> 00:01:07.120 This is what Jenny Craig has done. 23 00:01:07.120 --> 00:01:10.840 This is what tons of weight loss centers across America for, you know, decades have been 24 00:01:10.840 --> 00:01:11.840 doing, right? 25 00:01:11.840 --> 00:01:14.960 And so simply adding this on top but having the personal training anchored because they're 26 00:01:14.960 --> 00:01:18.560 coming into a gym allows us to charge much more for it, okay? 27 00:01:18.560 --> 00:01:23.040 Now that is hybrid in a nutshell, right? 28 00:01:23.040 --> 00:01:27.280 The reason I stopped talking about it was because I honestly had a huge revolt within 29 00:01:27.280 --> 00:01:28.280 my community. 30 00:01:28.280 --> 00:01:31.320 People who thought I still, I no longer wanted to work with gyms, right? 31 00:01:31.320 --> 00:01:33.760 And so that was kind of on the internal side. 32 00:01:33.760 --> 00:01:36.520 So people were like, you don't want to serve gyms anymore and I was like, no, I'm just 33 00:01:36.520 --> 00:01:40.600 saying like, this is a more profitable service and it doesn't require as much growth footage 34 00:01:40.600 --> 00:01:42.080 and you can make more profit. 35 00:01:42.080 --> 00:01:45.120 Like, that was kind of the whole argument, but they were like, no, you don't want that. 36 00:01:45.120 --> 00:01:48.800 And so I think part of that was cheer picking like one or two sentences and then like not 37 00:01:48.800 --> 00:01:50.080 listening to the whole story. 38 00:01:50.080 --> 00:01:51.080 That's okay, you know what I mean? 39 00:01:51.080 --> 00:01:52.080 It happens. 40 00:01:52.080 --> 00:01:59.080 It's a good lesson for me because I have to now, I learned how much one headline or one 41 00:01:59.080 --> 00:02:05.200 hook matters and I, and David Olgovy, who's a great advertiser, is like no prospect. 42 00:02:05.200 --> 00:02:13.280 Every ad has to contain the full concept of a product because consumers don't consume 43 00:02:13.280 --> 00:02:14.640 advertising in series. 44 00:02:14.640 --> 00:02:16.680 They only really consume one ad, right? 45 00:02:16.680 --> 00:02:19.520 Like they don't remember your advertisements like you do, right? 46 00:02:19.520 --> 00:02:22.320 And so that was a huge lesson for me. 47 00:02:22.320 --> 00:02:27.360 And so what I shifted towards, you may have heard me talking about it, is I just now say 48 00:02:27.360 --> 00:02:31.400 one on one nutrition and accountability rather than hybrid. 49 00:02:31.400 --> 00:02:36.160 And it was because when I said hybrid, it had tied to it, the online component. 50 00:02:36.160 --> 00:02:40.040 So when I say internally, I had some gyms who thought that I no longer wanted to serve gyms, 51 00:02:40.040 --> 00:02:42.520 which is crazy to me because literally always serve as gyms. 52 00:02:42.520 --> 00:02:43.520 But that's okay. 53 00:02:43.520 --> 00:02:45.520 It was my mistake. 54 00:02:45.520 --> 00:02:52.000 Externally, when I had any kind of mentions of online, it attracted a lot of trash. 55 00:02:52.000 --> 00:02:56.720 It brought a lot of entrepreneurs, it brought a lot of people who were dabbling, who 56 00:02:56.720 --> 00:03:03.120 wanted a side hustle, a laptop, lifestyle, like that type of person into our business and 57 00:03:03.120 --> 00:03:06.040 it was horrible by and large. 58 00:03:06.040 --> 00:03:09.440 Now that being said, there, obviously you saw a ton of people who were successful with 59 00:03:09.440 --> 00:03:10.440 it. 60 00:03:10.440 --> 00:03:15.080 It's just that the people who were successful with it were a gym owners, not people who 61 00:03:15.080 --> 00:03:18.280 could have a gym or could have done this, etc. 62 00:03:18.280 --> 00:03:21.560 Obviously we did have people who were, but if I'm looking at bigger percentages, they 63 00:03:21.560 --> 00:03:22.560 weren't. 64 00:03:22.560 --> 00:03:28.920 And so we did this as a 90 day run, so we did it from June until end of September, where 65 00:03:28.920 --> 00:03:29.920 we were marketing it. 66 00:03:29.920 --> 00:03:32.480 I think we might have even ended halfway through September in terms of the marketing 67 00:03:32.480 --> 00:03:34.680 externally. 68 00:03:34.680 --> 00:03:40.880 And by doing that, we just saw that the people, we had more sales than we'd ever had to 69 00:03:40.880 --> 00:03:41.880 do. 70 00:03:41.880 --> 00:03:44.040 It's so much, so much inbound, so much inquiries, right? 71 00:03:44.040 --> 00:03:45.760 The quality of the prospect was large. 72 00:03:45.760 --> 00:03:52.440 And so when we looked at after 90 days, who was still with us, right, and who had been successful, 73 00:03:52.440 --> 00:03:54.000 it was literally just gym owners. 74 00:03:54.000 --> 00:03:57.920 I mean, there were obviously PT's and things like that that were successful, but the vast 75 00:03:57.920 --> 00:03:59.840 majority were gym owners. 76 00:03:59.840 --> 00:04:04.160 And specifically gym owners that over had over 25 clients, they were full-time gym owners, 77 00:04:04.160 --> 00:04:08.080 they had releases, they had employees, so like real business owners, right? 78 00:04:08.080 --> 00:04:12.320 And so once we saw that, we totally changed the messaging externally. 79 00:04:12.320 --> 00:04:15.800 And so I changed the messaging internally to 101 nutrition and accountability, so people 80 00:04:15.800 --> 00:04:19.360 wouldn't freak out about it being a new thing. 81 00:04:19.360 --> 00:04:21.960 And what ends up happening as well is that a lot of the things that we had were like, 82 00:04:21.960 --> 00:04:25.120 well, I know that this is a better model, but I'm kind of tied to my lease already, so 83 00:04:25.120 --> 00:04:27.960 I can't really change that aspect of the overhead. 84 00:04:27.960 --> 00:04:32.680 And I already have enough people in large group, so I'm just going to kind of keep that. 85 00:04:32.680 --> 00:04:38.280 And so that is what, when we combined with the diagnostic sale as in taking large group 86 00:04:38.280 --> 00:04:43.240 and adding the 101 nutrition and accountability on top of it, made it really easy for everyone 87 00:04:43.240 --> 00:04:44.240 to understand. 88 00:04:44.240 --> 00:04:48.080 It made it real, there was no beliefs I had to break about adding nutrition and accountability 89 00:04:48.080 --> 00:04:51.360 to an existing service, like everyone was okay with that. 90 00:04:51.360 --> 00:04:56.280 And so what it ended up doing is allowing us to have $400 plus per month for large group. 91 00:04:56.280 --> 00:05:00.400 And so that was ultimately kind of the easier way of explaining it. 92 00:05:00.400 --> 00:05:05.160 And so this is, I think this is a great like, I mean, it was a huge learning experience 93 00:05:05.160 --> 00:05:06.160 for me. 94 00:05:06.160 --> 00:05:08.920 But for you, if you're taking this and listening like, okay, if I'm going to communicate 95 00:05:08.920 --> 00:05:16.640 change, one is always understanding that no one likes change, no one likes change, employees 96 00:05:16.640 --> 00:05:20.720 don't like change, clients don't like change, your mother doesn't like change, no one likes 97 00:05:20.720 --> 00:05:21.960 change, right? 98 00:05:21.960 --> 00:05:27.280 And so it was a huge lesson for me in terms of messaging, right? 99 00:05:27.280 --> 00:05:30.480 So if I could do it all over again, I wouldn't have called it hybrid. 100 00:05:30.480 --> 00:05:36.160 I would not have said any, I would never have said the word online, dear God, just the 101 00:05:36.160 --> 00:05:39.400 amount of trash that you get in from that was ridiculous. 102 00:05:39.400 --> 00:05:45.880 I would have simply said, take your large group at this on top, make more money, separate 103 00:05:45.880 --> 00:05:50.600 yourself, and don't sell workouts on it. 104 00:05:50.600 --> 00:05:53.640 Aimos and Asian quick break just to let you know that we've been starting to post on 105 00:05:53.640 --> 00:05:55.640 LinkedIn and want to connect with you. 106 00:05:55.640 --> 00:05:58.840 All right, so send me a connection request and let him know that you listen to the show 107 00:05:58.840 --> 00:06:00.240 and I will accept it. 108 00:06:00.240 --> 00:06:03.400 There's anyone you think that we should be connected with, tag them in one of my or 109 00:06:03.400 --> 00:06:06.440 layless posts and I will give you all the love in the world. 110 00:06:06.440 --> 00:06:09.560 All right, so let's get back to the show. 111 00:06:09.560 --> 00:06:12.480 Right, that's what I would have said. 112 00:06:12.480 --> 00:06:17.000 And it would have probably gone over way smoother than it did internally and then externally 113 00:06:17.000 --> 00:06:20.440 I wouldn't have had all the trash that came in because that just kind of crushes morale 114 00:06:20.440 --> 00:06:21.440 for the team. 115 00:06:21.440 --> 00:06:22.680 They have people not showing up for calls. 116 00:06:22.680 --> 00:06:26.560 They have, you know, people who are non-starters who like, you know, they're three weeks in 117 00:06:26.560 --> 00:06:30.520 and they're like, hey, we're like, dude, we're here, like, why haven't you launched your 118 00:06:30.520 --> 00:06:31.520 ad yet? 119 00:06:31.520 --> 00:06:32.520 They're like, I haven't logged in the portal yet. 120 00:06:32.520 --> 00:06:33.520 You're like, what are you doing? 121 00:06:33.520 --> 00:06:34.520 You know what I mean? 122 00:06:34.520 --> 00:06:41.920 So real business owners do much better with us because we are real business owners. 123 00:06:41.920 --> 00:06:46.320 And real business owners also have like real expectations in terms of understanding how 124 00:06:46.320 --> 00:06:51.000 like, yes, if you're going to sell for four hours a day, it's going to take four hours. 125 00:06:51.000 --> 00:06:52.000 Right? 126 00:06:52.000 --> 00:06:55.880 And can I do this for an hour, like people think that online means you don't work, right? 127 00:06:55.880 --> 00:06:59.680 I can tell you, I have an online business, I fucking work, right? 128 00:06:59.680 --> 00:07:02.920 And so it was kind of just bringing in the wrong type of people. 129 00:07:02.920 --> 00:07:07.200 So that's why I said I'd stop talking about that way externally and why I call it one 130 00:07:07.200 --> 00:07:11.800 of one interesting accountability internally now as well and in the marketing. 131 00:07:11.800 --> 00:07:16.040 So whenever I see one of one interesting accountability, it's me saying hybrid really fast just 132 00:07:16.040 --> 00:07:18.760 without the marketing spin on it. 133 00:07:18.760 --> 00:07:22.840 But all of these things were really necessary though for us to get to where we are now. 134 00:07:22.840 --> 00:07:26.960 And so that's kind of like the pros and cons of innovation, right? 135 00:07:26.960 --> 00:07:31.960 And so we needed to, I mean, I needed to fail that way. 136 00:07:31.960 --> 00:07:35.000 I found out another way not to do something. 137 00:07:35.000 --> 00:07:37.000 And luckily it was a 90 day sprint. 138 00:07:37.000 --> 00:07:39.040 We learned and then we adapted. 139 00:07:39.040 --> 00:07:46.000 And so what came from that was the combination of the diagnostic sale, which is probably 140 00:07:46.000 --> 00:07:52.960 the single greatest fundamental change that we've had in gym lunch in the last year to 141 00:07:52.960 --> 00:07:55.400 the model, right? 142 00:07:55.400 --> 00:07:59.440 And it took the components of hybrid and took the best components of the gym and just made 143 00:07:59.440 --> 00:08:04.240 it easy for everyone to understand, easy for them to differentiate from their competitors, 144 00:08:04.240 --> 00:08:09.800 easy for them to provide more value to the end user and ultimately make more money, right? 145 00:08:09.800 --> 00:08:15.440 And so now when someone walks in the door at one of our gyms, they walk in and it doesn't 146 00:08:15.440 --> 00:08:19.520 matter what promotion they're marketing, whether it's a 28 day, a six week, a 42 day, 147 00:08:19.520 --> 00:08:22.640 a 12 week, a 21 day, it doesn't matter, right? 148 00:08:22.640 --> 00:08:28.160 Seven day, it all is irrelevant because when that person walks in the door, we're going 149 00:08:28.160 --> 00:08:29.160 to sell the goal. 150 00:08:29.160 --> 00:08:32.720 We're going to sell to their goal so we can actually solve their problem, right? 151 00:08:32.720 --> 00:08:36.760 Because we can all agree when that person comes in, that 10 days anchor in a soft shit, 152 00:08:36.760 --> 00:08:37.760 right? 153 00:08:37.760 --> 00:08:41.080 And you can usually get most people to agree with that pretty easily. 154 00:08:41.080 --> 00:08:44.120 And so once we take them through a diagnostic selling process, we can say, let me solve your 155 00:08:44.120 --> 00:08:45.120 problem. 156 00:08:45.120 --> 00:08:47.800 It's going to take you this amount of time and by the end of this period of time, you won't 157 00:08:47.800 --> 00:08:48.800 need me anymore, right? 158 00:08:48.800 --> 00:08:52.680 And if you choose to stay, it's because you want to stay for the community and that's awesome. 159 00:08:52.680 --> 00:08:55.920 But like you will not, you will be able to have cake, you'll be able to count your macros, 160 00:08:55.920 --> 00:08:58.780 you'll know how to train by the end of this period of time so that you can keep this 161 00:08:58.780 --> 00:09:01.800 off for life and actually enjoy the process, right? 162 00:09:01.800 --> 00:09:06.680 And so I think so many more gyms got on board with that because they, I mean, just like 163 00:09:06.680 --> 00:09:10.120 anyone, like we just want to solve people's problems and we just happen to have this vehicle 164 00:09:10.120 --> 00:09:11.360 of large group workouts, right? 165 00:09:11.360 --> 00:09:16.140 Like, okay, you know, when my mom, who's 60, comes in, like she really shouldn't do boot 166 00:09:16.140 --> 00:09:17.140 camp, right? 167 00:09:17.140 --> 00:09:19.880 She's got a bad hip, like she, you know, I mean, she shouldn't do that. 168 00:09:19.880 --> 00:09:22.840 But she would let it would be great for her to have help with nutrition and accountability 169 00:09:22.840 --> 00:09:24.160 and just walk every day. 170 00:09:24.160 --> 00:09:27.120 And then over time, if she gets in shape enough and she gets the confidence to come into 171 00:09:27.120 --> 00:09:28.120 the gym, she can do that, right? 172 00:09:28.120 --> 00:09:32.680 But if someone is able to do the workouts, then it also allows you to really work on the 173 00:09:32.680 --> 00:09:35.360 95% that's going to drive the results, which is the food, right? 174 00:09:35.360 --> 00:09:37.000 And actually making sure they show up. 175 00:09:37.000 --> 00:09:40.360 And what's interesting is that people actually value that at a much higher level, right? 176 00:09:40.360 --> 00:09:44.480 People value someone falling up to them every day and helping them with their food more 177 00:09:44.480 --> 00:09:45.480 than they value workouts. 178 00:09:45.480 --> 00:09:49.760 And we know that because, you know, the big chains are coming in and just doing group workouts 179 00:09:49.760 --> 00:09:51.520 for 59 bucks a month limited. 180 00:09:51.520 --> 00:09:54.560 So it's like, if you want to differentiate from that, you have to find more ways to provide 181 00:09:54.560 --> 00:09:56.680 more personalization and more service, right? 182 00:09:56.680 --> 00:10:01.640 And so instead of necessarily eliminating your large group, you can just keep the large 183 00:10:01.640 --> 00:10:06.040 group the way it is, bolt this on on top to your existing membership base overnight at 184 00:10:06.040 --> 00:10:09.920 $10,000, $15,000 a month recurring with basically almost all margin. 185 00:10:09.920 --> 00:10:15.680 And then on the front end, you can sell people into 5K, 4K, 3K packages for large group, 186 00:10:15.680 --> 00:10:18.040 which I mean, is pretty unheard of. 187 00:10:18.040 --> 00:10:21.360 And so that's, that was the biggest fundamental change that we had in the business model. 188 00:10:21.360 --> 00:10:26.400 That's what allows us to now get to, you only need 180 EFTs to get to $1,000,000, right? 189 00:10:26.400 --> 00:10:31.360 Which if you have 8% of nutrition takes 12 months if you started zero, if you start at, 190 00:10:31.360 --> 00:10:33.760 and that's with only 100 leads a month. 191 00:10:33.760 --> 00:10:37.720 So, you know, if you have 5% of nutrition, you can hit it in like seven months or something 192 00:10:37.720 --> 00:10:39.320 like a camera of the math. 193 00:10:39.320 --> 00:10:44.000 But like, it's very fast because each client's $425 a month, right? 194 00:10:44.000 --> 00:10:48.760 And so if you were wondering what happened to hybrid, hybrid is still here. 195 00:10:48.760 --> 00:10:52.760 It is just, it is going, it is silent, it is in ninja clothes. 196 00:10:52.760 --> 00:10:58.680 It is in normal, normal messaging clothes that I call one-on-one nutrition accountability 197 00:10:58.680 --> 00:10:59.760 so that people didn't freak out. 198 00:10:59.760 --> 00:11:04.320 And I never say the word online ever again in the online space because dear God, the trash 199 00:11:04.320 --> 00:11:05.320 that you attract. 200 00:11:05.320 --> 00:11:11.480 So, anyhow, that was the lessons that I got from hybrid for us. 201 00:11:11.480 --> 00:11:16.480 And so the big, the big takeaway is that by going through that process, I really don't 202 00:11:16.480 --> 00:11:18.120 know our messaging. 203 00:11:18.120 --> 00:11:22.200 We are super exclusive in our messaging now after we saw like, we're like, we only work 204 00:11:22.200 --> 00:11:24.000 with gym motors. 205 00:11:24.000 --> 00:11:25.000 You must have a gym. 206 00:11:25.000 --> 00:11:26.000 You must be full time. 207 00:11:26.000 --> 00:11:27.000 You must have employees. 208 00:11:27.000 --> 00:11:28.000 You must have rent. 209 00:11:28.000 --> 00:11:31.480 Like, actually be a legitimate real business owner. 210 00:11:31.480 --> 00:11:32.480 And if you're not that's cool, I wish you the best. 211 00:11:32.480 --> 00:11:36.720 And I hope you find value on our stuff, but it's just like, we're not going to work. 212 00:11:36.720 --> 00:11:41.560 So, anyhow, that is, that is the history of hybrid, that kind of little eliteration, 213 00:11:41.560 --> 00:11:46.440 the history of hybrid and where it is now and how it is massively a part of the business 214 00:11:46.440 --> 00:11:47.600 model that we espouse. 215 00:11:47.600 --> 00:11:48.600 I just don't talk about it that way. 216 00:11:48.600 --> 00:11:51.800 I just say, one-on-one nutrition accountability because no one loses their minds when I 217 00:11:51.800 --> 00:11:52.800 say that. 218 00:11:52.800 --> 00:11:55.480 So, anyways, I hope you guys have an amazing day. 219 00:11:55.480 --> 00:11:56.480 Drop a like. 220 00:11:56.480 --> 00:12:00.920 If you did not like this, if you're listening at home or on the podcast, please leave a 221 00:12:00.920 --> 00:12:03.000 review because we always appreciate those. 222 00:12:03.000 --> 00:12:06.080 Anyways, have an amazing day and I'll catch you guys on e-flops. 223 00:12:06.080 --> 00:12:07.080 Bye.