WEBVTT 1 00:00:00.000 --> 00:00:04.320 What I'm going to talk about in this podcast is not fun, but it's going to make you a lot of money. 2 00:00:04.320 --> 00:00:09.440 And it's probably the number one reason that you are not doubling down on the biggest strategic 3 00:00:09.440 --> 00:00:14.080 advantage most small businesses have. And I'm going to explain why so many of you are leaving 4 00:00:14.080 --> 00:00:19.600 massive amounts of money on the table right now and not using your single largest competitive 5 00:00:19.600 --> 00:00:25.760 advantage. And these lessons have come hard earned from years in business. I've founded and 6 00:00:25.760 --> 00:00:31.120 exited nine businesses. My last one at $46.2 million. Our current portfolio is over $200 7 00:00:31.120 --> 00:00:36.240 million a year. And I make these videos so that you can make money. I remember when I was in 8 00:00:36.240 --> 00:00:41.520 weight loss. I would have a lady who would walk in and she would say something like, hey, 9 00:00:42.320 --> 00:00:46.240 I don't want to lose too much weight, right? Or I'd have a guy and this is probably the more common 10 00:00:46.240 --> 00:00:50.000 one. They'd say, well, I don't want to get, I don't want to look like you. Like, and I'm like, 11 00:00:50.000 --> 00:00:54.640 don't worry, you're never well. But the point is, is they would look at me and say, 12 00:00:55.200 --> 00:00:59.680 I don't want to get bulky like you. You have too much muscle. I don't think that looks good. 13 00:00:59.680 --> 00:01:02.880 And I'm like, you know, you're not going to wake up tomorrow and just be jacked to shit and 14 00:01:02.880 --> 00:01:06.720 have trained for 20 years, right? It's not going to happen. There's going to be a million days 15 00:01:06.720 --> 00:01:10.720 in between it. At any point you can say, I'm just going to stop here. I'm going to try and maintain. 16 00:01:10.720 --> 00:01:15.360 But the thing is is that people try and say that they don't want the extreme version of a solution. 17 00:01:15.360 --> 00:01:20.000 So they're not willing to do take a step in that direction. And so the same thing happens from 18 00:01:20.000 --> 00:01:24.320 a deliverability perspective. They say, hey, you know what? If I do it this way, I'm not going to 19 00:01:24.320 --> 00:01:29.040 be able to hit a hundred million dollars a year. This isn't scalable. But the thing is is that 20 00:01:29.040 --> 00:01:33.280 you're not even making money right now. And you're talking about scale. You're talking about how 21 00:01:33.280 --> 00:01:36.800 you're not going to fit in your clothes and you haven't even lost weight. You're talking about 22 00:01:36.800 --> 00:01:40.400 how you don't want to look too bulky. But no one even knows you work out right now because of how 23 00:01:40.400 --> 00:01:45.600 you look. And so the same thing in business is that like, sure, you think and here's the, here's 24 00:01:45.760 --> 00:01:50.880 the real real is that when you start, you don't have context and you don't have resources. 25 00:01:50.880 --> 00:01:56.080 So with your current set of resources, the unskable thing looks unskable because you have no help 26 00:01:56.080 --> 00:02:00.880 and you have no money and you have no leverage. But good friend of mine, Andy Fritzell, he has first 27 00:02:00.880 --> 00:02:04.880 formed. They do hundreds of millions of dollars a year in revenue. When he started the business, 28 00:02:04.880 --> 00:02:10.880 he started writing handwritten cards to every single person who bought their products. Now in the 29 00:02:10.880 --> 00:02:14.720 beginning, be like, you're the owner. How could you write handwritten cards to every single person 30 00:02:14.720 --> 00:02:20.880 that buys the product? That's not scalable, Alex. But guess what? He still does it today and they 31 00:02:20.880 --> 00:02:25.360 get a zillion orders a minute at this point. But what did he do? Well, in the beginning, he was 32 00:02:25.360 --> 00:02:28.960 writing the handwritten cards. And then for time, he just signed the handwritten cards. And then 33 00:02:28.960 --> 00:02:33.600 finally, other people were writing the handwritten cards and the gestures still held. And so the thing 34 00:02:33.600 --> 00:02:39.280 is there's a, there's a 2.03 point version that can still check 80% of the boxes that you learn from 35 00:02:39.440 --> 00:02:45.280 the unscatable solution. I got on the phone this last week with a recent founder who exited a 36 00:02:45.280 --> 00:02:49.600 Fintech company for $2.5 billion. Some of you guys just saw my story. I've been trying to talk 37 00:02:49.600 --> 00:02:53.680 to people in that space. If you don't do know somebody in neo banking, I'm paying for rustishing 38 00:02:53.680 --> 00:02:57.840 who had a big exit. Please set me up. I'm trying to learn some stuff for one of our portfolio 39 00:02:57.840 --> 00:03:03.040 companies. But anyways, he was saying, hey, it's all about the unscatable. And he and I had this great 40 00:03:03.040 --> 00:03:08.800 chocolate about this that so many business owners are unwilling to do the heavy hard work, 41 00:03:08.800 --> 00:03:12.960 the 101 calls, the talking to customers in the beginning because they say it's not scalable. 42 00:03:12.960 --> 00:03:17.680 But there's always a version that presents itself to three steps down the road because you'll have 43 00:03:17.680 --> 00:03:22.880 the money and the skill to be able to say, hey, what are the key components of this thing that 44 00:03:22.880 --> 00:03:28.080 can make it scalable? And so I would encourage you. If you're starting the business and let's say 45 00:03:28.080 --> 00:03:31.200 you're selling, because I'm obviously in the school community, right? And so I see people who are 46 00:03:31.200 --> 00:03:35.520 trying to sell a $20 a month community. And they're like, why don't I hop on the phone for 47 00:03:35.520 --> 00:03:41.680 a $20 a month sale? Also, first off, guess what genius? I was in the large fitness world brick 48 00:03:41.680 --> 00:03:45.280 and mortar. What do you think gym membership sell at? Do you think they have a person selling it 49 00:03:45.280 --> 00:03:50.080 in the front desk? Sure, shit, they do. Guess who it isn't? The owner and they can still 50 00:03:50.080 --> 00:03:55.600 scale that process. And so again, the idea that things are scalable is ridiculous. Now, 51 00:03:55.600 --> 00:04:00.880 sure, you're not going to be able to take 20 calls a day at scale. But you're currently 52 00:04:00.960 --> 00:04:06.640 making zero dollars. So what the fuck are you doing all day? You can't be busy and broke. 53 00:04:07.200 --> 00:04:10.960 Pick one, right? You're either busy and you're making money because you're doing the right stuff 54 00:04:10.960 --> 00:04:15.600 or you're broke, but you got plenty of time. Like, you can't have both problems. And so 55 00:04:16.240 --> 00:04:21.440 if you're broke, get busy and do some of the unscalable stuff. And that means hopping on the calls 56 00:04:21.440 --> 00:04:25.200 with customer that are below your ticket price. But guess what that happens is that you're learning 57 00:04:25.200 --> 00:04:29.200 more from them than you are earning from them. And that's okay, because you're going to learn the 58 00:04:29.200 --> 00:04:33.120 pain points they're suffering from. You're going to learn the hooks in the messaging that matter. 59 00:04:33.120 --> 00:04:37.600 Most of them, you're going to learn how to alter your product and your offer in a way that makes it 60 00:04:37.600 --> 00:04:40.880 convert at a higher percentage. You're going to learn the things they don't care. By the way, 61 00:04:40.880 --> 00:04:44.880 you want two magic questions. Here's some pro tips for you. The first thing you ask a customer 62 00:04:44.880 --> 00:04:49.200 is you say, Hey, if I were to eliminate all of the things that I have in my feature set, 63 00:04:49.200 --> 00:04:54.080 except for one, what would it be? And they'll tell you. And if you ask 100 people, 64 00:04:54.080 --> 00:04:59.040 you'll get by far a power ranking for what matters most in terms of value for the core 65 00:04:59.040 --> 00:05:02.640 deliverables you have. Now, you can also ask the second, the inverted version of that question, 66 00:05:02.640 --> 00:05:07.040 which is, Hey, if I were to eliminate one thing for my entire feature set and it changed nothing 67 00:05:07.040 --> 00:05:10.960 about your life, which one would it be? And you'll also get the least valuable thing. And between both 68 00:05:10.960 --> 00:05:16.000 those elements, and if you do this on a regular basis, you continue to cut and trim and distill down 69 00:05:16.000 --> 00:05:20.880 the value they provide to the most amount of people by simply asking them. And so I think Paul 70 00:05:20.880 --> 00:05:24.160 Graham said this and I believe this and I keep repeating it because I think it's so important is 71 00:05:24.160 --> 00:05:30.960 that you can solve every question and every problem in business by talking to your customer more. 72 00:05:30.960 --> 00:05:34.320 You have a marketing problem. Talk to your customer. You have a product problem. Talk to your 73 00:05:34.320 --> 00:05:38.960 customer like they know what they want. And they will tell you how to address them and how to 74 00:05:38.960 --> 00:05:44.000 advertise to them. And so getting on the phone and doing the quote unscable, writing the handwritten 75 00:05:44.000 --> 00:05:48.160 card, onboarding every customer, even though it's $10 a month that they're paying. Guess what happens 76 00:05:48.160 --> 00:05:51.360 when you onboard those customers? I'll bet you they're going to stay longer. I'll bet you 77 00:05:51.360 --> 00:05:55.280 they'll refer more people and you're going to be able to make the product better and the marketing 78 00:05:55.280 --> 00:06:00.080 better. And so even if you do that, now let's say, okay, Alex, oh my god, I followed your advice 79 00:06:00.080 --> 00:06:03.200 and now I'm taking 20 calls a day. Well, guess what? Now you're making money and I don't give a 80 00:06:03.200 --> 00:06:07.280 shit. But if you're still like, hey, I want to make more money. Fine. I'll give you the next step. 81 00:06:07.280 --> 00:06:12.880 So when you go from 101, you go to sell my private. You do one on six, right? You can still deliver 82 00:06:12.880 --> 00:06:17.280 a close to that experience, but you six x your outfit. So instead of talking to 20 people a day, 83 00:06:17.280 --> 00:06:21.760 you talk to 120 people a day. Now, if you're like, wow, 20 people a day, that sounds like loud. 84 00:06:21.760 --> 00:06:28.480 Guess how Alex learned sales? I did 4,000 one-on-one closes, not consoles closes over a multi-year period 85 00:06:28.480 --> 00:06:33.440 for my gyms. Why? Because I had appointments back to back to back to back to back and I had two to 86 00:06:33.440 --> 00:06:37.360 three people that were scheduled for every 30 minutes. And so that accounted for sure rate so 87 00:06:37.360 --> 00:06:41.120 that no matter what, I always had one to three people who were showing up every 30 minutes that I 88 00:06:41.200 --> 00:06:45.440 pitched the exact same thing to. And guess what happened? I got pretty good at sales. 89 00:06:45.440 --> 00:06:49.840 The amount of people who asked me, hey, what sales training did you go to? I did it. I went through 90 00:06:49.840 --> 00:06:54.240 the unscalable sales training of actually just selling a lot of people. And so the idea is that 91 00:06:54.240 --> 00:07:00.080 you are going to learn more than you are going to earn in the beginning. And that is okay because 92 00:07:00.080 --> 00:07:05.040 as long as you see entrepreneurship as a continual journey of educating yourself on your customer, 93 00:07:05.040 --> 00:07:08.320 the problems that you're trying to solve for them, why would you not want to fast track that in 94 00:07:08.320 --> 00:07:12.640 gym as much of that as you possibly could from the best possible teacher that is in the marketplace 95 00:07:12.640 --> 00:07:17.760 which is the market itself. And so I can pass you about this because I see so many poor people 96 00:07:17.760 --> 00:07:20.480 trying to think that they're thinking like rich people when they're really thinking like poor 97 00:07:20.480 --> 00:07:27.520 people because they're trying to be broke and not busy. So get busy. Talk to the customers. 98 00:07:27.520 --> 00:07:31.680 Even if they pay you ten bucks a month, you'll learn more. And then guess what happens after you 99 00:07:31.680 --> 00:07:37.440 do one on six. You do group onboarding. You do one on 20. You do one on 30. And guess what you can 100 00:07:37.440 --> 00:07:40.800 do from there. We have a company right now that still does that did group onboarding and scale 101 00:07:40.800 --> 00:07:44.000 to a hundred million plus a year. All right. And we still did it because we knew the onboarding 102 00:07:44.000 --> 00:07:47.680 was such an important part of the process for sitting in expectations telling what was going to happen 103 00:07:47.680 --> 00:07:54.320 next. Keep setting promises and keeping promises over and over and over again. And so if you have one 104 00:07:54.320 --> 00:07:58.720 on 30, fine. Guess what? You can still do six. Those do 180 people a day with just one person. 105 00:07:58.720 --> 00:08:02.720 And if you train somebody and what happens like let's really think through this in the beginning, 106 00:08:02.720 --> 00:08:06.640 you do the one on once. Okay. Now in the beginning, you're just answering questions. 107 00:08:06.640 --> 00:08:10.480 Over time, you say, okay, most people have these same six questions. And so then I'm going to create 108 00:08:10.480 --> 00:08:14.320 a little presentation around these six questions. And so then you start using the presentation 109 00:08:14.320 --> 00:08:17.280 in the one on one. So you're like, you know what? I think I can do this a little bit faster. 110 00:08:17.280 --> 00:08:20.880 And so you get the one on six there and you have the presentation and you're still seeing 111 00:08:20.880 --> 00:08:25.200 the same output with the one on six as you were at the one on one. Fantastic. Now what do you do? 112 00:08:25.200 --> 00:08:30.000 You see, can I get to 30? And you do 30. And then you five x again, your six x output. And again, 113 00:08:30.000 --> 00:08:33.760 now you're like, huh, I wonder if I can teach somebody else to go through the same deck as me. 114 00:08:33.760 --> 00:08:37.680 And you know what? You do. And just like that, you scaled the fucking unscalable. 115 00:08:38.320 --> 00:08:42.400 Real quick, if you're tired of being broken, would rather be busy. Join me at the schoolgame. 116 00:08:42.400 --> 00:08:46.400 So school.com, forward slash games, I take a call every every week in there. I'll help you build 117 00:08:46.400 --> 00:08:50.560 your business step by step. We have once a month, a mastermind that I drop in there of all the people 118 00:08:50.560 --> 00:08:54.480 who fly out from the top 10 communities that are making money online right now. And we break down 119 00:08:54.480 --> 00:08:58.480 all the taxes that they're doing right now so that you can use them too. And so just because in the 120 00:08:58.480 --> 00:09:03.120 beginning, you can't see how it's going to scale. Doesn't mean it's impossible to scale. 121 00:09:03.120 --> 00:09:08.800 I had this girl come up to me at an event ages ago. And she was in the fitness world obviously 122 00:09:08.800 --> 00:09:15.600 because that's where I was. And she said, I do outbound for my, my business. And we do $30,000 a month. 123 00:09:16.480 --> 00:09:20.480 But I want to have a more scalable acquisition system. And I was like, 124 00:09:22.080 --> 00:09:25.840 why can't you scale outbound? And she's like, well, I mean, it requires people. And I was like, 125 00:09:25.840 --> 00:09:30.960 welcome to business, baby. Like, how do you think you're going to scale the deliverable if you 126 00:09:30.960 --> 00:09:36.240 had fitness coaching? I was like, people is fitness coaching unskailable? No, you hire and train 127 00:09:36.240 --> 00:09:41.040 people. Welcome to the service business, which is culture and training. That service. That's how it 128 00:09:41.040 --> 00:09:47.040 works. And the fact that you don't know how to do it is what makes it unskable. Not that physics 129 00:09:47.040 --> 00:09:51.760 disproves the ability to scale onboarding or scale handwritten cards. Like unless you can prove 130 00:09:51.760 --> 00:09:56.800 physically that's impossible, that gravity exists differently in your fucking world, then it's 131 00:09:56.800 --> 00:10:03.040 not unskable. You have a skill deficiency. It's unskailable. That's what it is. It's not unskable. 132 00:10:03.040 --> 00:10:07.600 You are unskilled enough to scale it. And so the reason that you have to do the unskable stuff is 133 00:10:07.600 --> 00:10:12.640 that there's a swamp in business where you don't have enough money to pay somebody else, 134 00:10:12.640 --> 00:10:17.760 but you still have to do your day job and the next job. And so you just have to work over time. 135 00:10:17.760 --> 00:10:21.440 And that means you work today's job and tomorrow's job so that you can get ahead. And so the 136 00:10:21.440 --> 00:10:27.840 thing is that every single business, hear me out. Every single business incurs debt. So the question 137 00:10:27.840 --> 00:10:32.960 is what type of debt do you want to incur? So a venture back company incurs financial debt so that 138 00:10:32.960 --> 00:10:37.920 they can have lots of talent up front. They can get really smart people and pay them where they 139 00:10:37.920 --> 00:10:42.560 should be paid at market rates. Now, if you don't have that money to pay all those good people, 140 00:10:42.560 --> 00:10:46.400 guess what kind of debt you incur? Management debt because you don't have the right people because 141 00:10:46.400 --> 00:10:49.600 you can't afford to pay them. And when you have management debt, what does that mean? It means 142 00:10:49.600 --> 00:10:54.400 that you have to work the job of two, three, four people. And that's what makes it quote unskable. 143 00:10:54.400 --> 00:10:58.240 But you have to go through that swamp in order to get to the other side. And one of the big 144 00:10:58.240 --> 00:11:02.720 problems is that people look 10 steps ahead and then project that back to the present. It's the same 145 00:11:02.720 --> 00:11:07.360 thing as saying, Hey, I want to get rich. So I'm going to go start flying private. It's like, 146 00:11:08.320 --> 00:11:13.680 Warren Buffett wasn't flying private to get rich. He has done that as a result of being rich. 147 00:11:13.680 --> 00:11:18.320 It's not the path that got him there. It is the outcome of being there. And this is actually one 148 00:11:18.320 --> 00:11:22.480 of the big issues. I see at large with a lot of the information that gets put out there is that 149 00:11:22.480 --> 00:11:28.320 what happens is people grind and they sacrifice a time and then they get rich and then they have 150 00:11:28.320 --> 00:11:32.000 a different demand on their time and then they extrapolate and they give advice of their current 151 00:11:32.000 --> 00:11:36.240 setting to people who are not in their current context, which is try why I try to spend a lot of 152 00:11:36.240 --> 00:11:40.320 time with people who are making their first 10k first 100k first million dollar a month. So I can 153 00:11:40.320 --> 00:11:44.800 remember what it's like to beat each of those levels so that can make sure that what I'm saying 154 00:11:44.800 --> 00:11:48.560 is contextual to the current constraint of the business that you're in. And I'll give you a 155 00:11:48.560 --> 00:11:53.200 super tactical example of this in companies that we still to this day who do tens and hundreds of 156 00:11:53.200 --> 00:11:58.960 millions of dollars in revenue is that I know just like you do, if I get a green text that clearly 157 00:11:58.960 --> 00:12:04.480 is from a chat interface for a sales rep or an automation, I'm way less likely to respond. 158 00:12:04.480 --> 00:12:10.000 If I get an iMessage, I'm an Apple user. And so I know that this is a real person on the other side. 159 00:12:10.000 --> 00:12:14.000 And so what do you think I have our sales teams do? Do we use the interface or do we do the 160 00:12:14.000 --> 00:12:19.520 unscalable? Yes, guess what? We send a personalized voice note. We send a personalized video. We 161 00:12:19.520 --> 00:12:24.080 send it via iMessage from a personal phone. Now, does it mean that they have to have a personal 162 00:12:24.080 --> 00:12:28.640 phone? No, I don't need to use their phone. I can buy them an iPhone. Again, there's leverage. 163 00:12:28.640 --> 00:12:31.920 There's leverage in the beginning. You're like, what am I going to do buy everyone an iPhone? Well, 164 00:12:31.920 --> 00:12:36.560 eventually, yes. But in the beginning, you don't have money. And that's okay. But you think that 165 00:12:36.560 --> 00:12:40.640 something isn't scalable because you don't have the context from which to scale. But if you had 166 00:12:40.640 --> 00:12:45.360 unlimited money and unlimited talent, you absolutely could scale it. And so just don't use that as 167 00:12:45.360 --> 00:12:49.200 the excuse to not do the thing that you know would work better because you have to be more efficient 168 00:12:49.680 --> 00:12:55.120 per lead, per opportunity when you're small. And so you have to pull out all the stops. Gary 169 00:12:55.120 --> 00:12:59.200 Halpert is this amazing story about this. He says, whenever I want to write a sales letter, 170 00:12:59.200 --> 00:13:05.360 I imagine that I can only write one letter for my life or I'm going to die. And so he says, 171 00:13:05.360 --> 00:13:10.320 if I, if he starts with that hypothetical max saying, if that's what I had to do, what would I do? He's 172 00:13:10.320 --> 00:13:15.280 like, well, first I would have a handwritten envelope that I'd handwrite the name on it. I'd have a 173 00:13:15.280 --> 00:13:19.920 stamp that I would lick and put on it on the inside would be a handwritten letter from me. And then 174 00:13:19.920 --> 00:13:23.840 the words themselves would be all these things. And I'd have some lumpy thing in there. And he starts 175 00:13:23.840 --> 00:13:27.680 the hypothetical extreme because if you only have enough money to send a hundred letters, 176 00:13:27.680 --> 00:13:33.520 then fucking handwrite all of them, right? Now over time, you're like, okay, this worked. How do I 177 00:13:33.520 --> 00:13:37.360 scale it? But guess what? Now you've got the sales from you writing a hundred letters. And guess 178 00:13:37.360 --> 00:13:40.720 what? You have the skill of writing a hundred of those letters. And obviously, you start to 179 00:13:40.720 --> 00:13:43.920 develop a system for how you write those letters. And you expand your capacity to 500 letters. 180 00:13:43.920 --> 00:13:47.760 And you five x your income. And you're like, okay, now what are the elements that of my unscathed 181 00:13:47.760 --> 00:13:54.240 solution that the highest effect or impact on the throughput? Well, 80% of this stuff didn't 182 00:13:54.240 --> 00:13:59.440 have as much of the impact. This 20% did. I can use cash from my earlier less scalable thing 183 00:13:59.440 --> 00:14:04.480 to create more leverage in the more scalable thing and get 80% of the effects and 10 times the 184 00:14:04.480 --> 00:14:09.680 output. So it still makes sense. And so you always are going to lose efficiency at scale. But the 185 00:14:09.680 --> 00:14:13.840 question is, in the beginning, start with the absolute most efficient process. And this is 186 00:14:13.840 --> 00:14:18.240 fundamentally the opportunity for all starting or smaller businesses. And when I say small business, 187 00:14:18.240 --> 00:14:22.320 I'm saying 10 million and under. All right. So don't get your get your ego all up. I'm like, 188 00:14:22.320 --> 00:14:26.080 almost seven figure out. I don't give a shit. The point is is that you're not you're not Apple. 189 00:14:26.080 --> 00:14:31.040 You're not a $3 trillion company. You're not Microsoft, right? So you can do things that they can't. 190 00:14:31.040 --> 00:14:35.520 That is the advantage of the small business. And that is why there will always be small businesses 191 00:14:35.520 --> 00:14:40.080 because they can do things that big businesses can't because they don't scale. But the fact that 192 00:14:40.080 --> 00:14:46.400 they don't scale 100% is 100% your opportunity to beat them. If you're not doing this, it's like 193 00:14:46.400 --> 00:14:52.240 getting dealt pocket aces and then choosing to fold because you're saying, I can't have pocket aces 194 00:14:52.240 --> 00:14:57.200 on every single turn because my next turn, I might not get it. And so I have to not use them now. 195 00:14:57.200 --> 00:15:03.120 You have them in this chapter. So use them. Use what you've got. The first rule of entrepreneurship. 196 00:15:03.120 --> 00:15:08.240 Use what you have. And if you have an advantage, if you're the small fish, then that's the advantage 197 00:15:08.240 --> 00:15:12.480 you play. Now become a mid fish. Then you have other advantages. You have resources. You have a 198 00:15:12.480 --> 00:15:17.200 little bit of reputation. And you use those resources to leverage up. So now I've talked about 199 00:15:17.200 --> 00:15:20.960 scaling the unscaled, but hopefully you're sold on that concept. There's two frameworks that I 200 00:15:20.960 --> 00:15:25.840 introduced you. One is the sales to delivery continuum and understanding the dynamic between both 201 00:15:25.840 --> 00:15:31.840 polls. And secondly, the done for you, done with you, do it yourself, pyramid. So the first thing is 202 00:15:31.840 --> 00:15:36.880 is understanding something that I called in the offers book, the sales to fulfillment continuum. 203 00:15:36.880 --> 00:15:42.640 And basically, the sales to fulfillment continuum states that the easier something is to sell, 204 00:15:42.640 --> 00:15:47.840 the harder it is to fulfill in general. Now, the only main exception of this technology, 205 00:15:47.840 --> 00:15:53.200 but when it comes to services, it's usually, if it's really easy to sell, it means like, hey, 206 00:15:53.200 --> 00:15:57.760 I'll do everything for you no matter what. Very easy to sell, very easy to make that promise, 207 00:15:57.760 --> 00:16:01.600 very hard to deliver on that promise. Now, the other side of that is that if I said, hey, 208 00:16:01.600 --> 00:16:06.240 you have to do it all yourself. Then that's something that's very hard to sell, but very easy to 209 00:16:06.240 --> 00:16:09.920 deliver on. And so what I find interesting is that the vast majority of people who are starting 210 00:16:09.920 --> 00:16:14.240 businesses try to start on the thing that's the hardest to sell. And I think they have it wrong. 211 00:16:14.240 --> 00:16:20.320 I think they have it backwards. And in my career, I've had basically the exact opposite 212 00:16:20.880 --> 00:16:24.960 perspective or approach to starting a business or starting a new product line. And so if you're 213 00:16:24.960 --> 00:16:28.560 a business owner, I would think about this when you're thinking about selling a new product or 214 00:16:28.560 --> 00:16:32.080 starting a new level of service. And if you're someone who's new, then this is going to be starting 215 00:16:32.080 --> 00:16:36.640 from zero to selling the first thing. Now, the second framework around this, the first is the 216 00:16:36.640 --> 00:16:41.840 sales to fulfillment continuum. The second is the order in which you attack it. And so the way that 217 00:16:42.480 --> 00:16:46.880 I recommend doing this is following what I call, you know, like the Tesla model, which is, 218 00:16:46.880 --> 00:16:51.280 you start at the top of the pyramid with the most expensive thing. First, this is typically done 219 00:16:51.280 --> 00:16:56.080 for you. So this is very easy to sell, very hard to fill. And that's okay because in the beginning, 220 00:16:56.080 --> 00:16:59.680 you don't have them any customers. You don't have them much leapflow. And so you want to maximize 221 00:16:59.680 --> 00:17:04.560 the revenue per customer. Now, in addition to that, it also sets you up to go downstream later, 222 00:17:04.560 --> 00:17:09.360 because you will get the highest percentage of people the best results with done for you. The 223 00:17:09.360 --> 00:17:13.680 difficulty is that it's more difficult to scale. Come on. And that's okay. Because again, 224 00:17:13.680 --> 00:17:19.040 we're starting out. And when you do this, you develop the SAPs. You develop the products 225 00:17:19.040 --> 00:17:23.440 underneath of that larger product that allow you to product ties the service that you're ultimately 226 00:17:23.440 --> 00:17:27.440 going to deliver later. And so imagine you take on, I'll use an agency as a simple example here. 227 00:17:27.440 --> 00:17:31.920 If I took on agency clients and I did everything turn key, well, I'm going to start developing 228 00:17:31.920 --> 00:17:36.560 SAPs for lead magnets or developing SAPs for ads. I'm going to start developing SAPs for landing 229 00:17:36.640 --> 00:17:41.040 pages and upsell pages and email follow-up. All of these things are things that I'm going to have 230 00:17:41.040 --> 00:17:45.680 to develop SAPs for. Now, once I have all of these systems in place, guess what happens next? 231 00:17:45.680 --> 00:17:49.440 You're from the top of the pyramid to the second layer of the pyramid, which goes from done for you 232 00:17:49.440 --> 00:17:53.920 to done with you. Now, done with you, you can typically charge a fraction of or less than what you 233 00:17:53.920 --> 00:17:58.000 charge for done for you. Sometimes a third of the price, a fifth of the price. But by doing that, 234 00:17:58.000 --> 00:18:02.640 you've productized a great degree of the service and then you switched from a service provider to a 235 00:18:02.640 --> 00:18:07.200 consulting relationship where you're helping someone do it themselves, but you're still there 236 00:18:07.200 --> 00:18:12.720 to assist. And so that's kind of in between the total not even hand holding, it's hand doing 237 00:18:12.720 --> 00:18:17.600 to hand holding to no hands touching, right, which is do it yourself at the end. And the thing is, 238 00:18:17.600 --> 00:18:21.680 is imagine the opposite version of this. From a branding perspective, you've positioned yourself, 239 00:18:21.680 --> 00:18:26.400 you price anchored the most expensive version of your service that has the highest results with 240 00:18:26.400 --> 00:18:30.560 the best customers. And so you already have this strong association at the top of the pyramid, 241 00:18:30.560 --> 00:18:35.280 which then allows you to go and say, Hey, listen, I have, you know, 10 private clients, they all, 242 00:18:35.280 --> 00:18:40.320 you know, pay me $10,000 a month to do whatever it is. And I have a lot of you guys who are asking me, 243 00:18:40.320 --> 00:18:45.200 but you don't necessarily qualify for my private client service. And so I decided to take all the 244 00:18:45.200 --> 00:18:48.320 stuff that I have for my private client service and make it available to you. And I'll help you walk 245 00:18:48.320 --> 00:18:51.840 through the process that I walk through with them, but instead of me doing it, you could do it for 246 00:18:51.840 --> 00:18:56.800 yourself, but I will be there every step of the way. And by offering that, you are able to sell 247 00:18:56.880 --> 00:19:00.960 10 times the amount of people because the amount of handholding in terms of support that you have to 248 00:19:00.960 --> 00:19:06.400 offer is one tenth of you literally doing it. Now, from there, again, you say, Hey, there's a lot of 249 00:19:06.400 --> 00:19:09.920 people who know my private clients, they can't necessarily afford that and they can't afford this 250 00:19:09.920 --> 00:19:14.880 thing, but they have, they're enterprising and they want to take things on their own. And so I take 251 00:19:14.880 --> 00:19:19.200 all the SOPs and stuff and I will give them to you so you can just follow along and do it on your 252 00:19:19.200 --> 00:19:23.680 own. And that's one tenth or, you know, one third of the price I've might done with you. And so 253 00:19:23.680 --> 00:19:28.480 I prefer the top down approach to the bottom up approach because let's play it the other way. 254 00:19:28.480 --> 00:19:32.160 Hey, I've got this really cheap thing, right, that I've been selling to everybody and I have, 255 00:19:32.160 --> 00:19:35.520 you know, everyone in there and their mother takes it. Now, I'm going to start helping you through 256 00:19:35.520 --> 00:19:39.520 it. Now, to be fair, I don't think there's anything necessarily wrong with that is just that if I 257 00:19:39.520 --> 00:19:44.240 had a preference between which one I would prefer to build, I'm going to have the least operational 258 00:19:44.960 --> 00:19:49.520 drag at the top because I have the fewest number of customers and then I have more customers and 259 00:19:49.520 --> 00:19:54.320 then I have the most customers. And as I move my way down the pyramid, it gets harder and harder 260 00:19:54.320 --> 00:19:59.360 to sell, but my skill in sales improves, right, because I'll know the customers off, talk to them, 261 00:19:59.360 --> 00:20:03.760 I'll spend time with them. And so my messaging can improve and get better and better. All right, 262 00:20:03.760 --> 00:20:08.960 that's what I had. That's my money message of the day. Is that scale, the unscalable start there, 263 00:20:08.960 --> 00:20:13.840 stop being, stop being broken, not busy and get busy and you won't be broke for long. Hey, 264 00:20:13.840 --> 00:20:19.840 guys, if you enjoyed this podcast, share it. That's all I ask. Don't be lame, share the game, 265 00:20:19.840 --> 00:20:24.400 screenshot it, tag me on Instagram. I'm sharing as many of them as I can, send it to your employees, 266 00:20:24.400 --> 00:20:29.440 send it in Slack because this is the stuff that really makes businesses work.