WEBVTT 1 00:00:00.000 --> 00:00:01.960 Most of the nation, a lot of times you guys ask me about, 2 00:00:01.960 --> 00:00:03.080 what does time to value mean? 3 00:00:03.080 --> 00:00:04.120 What do quick wins mean? 4 00:00:04.120 --> 00:00:06.920 How do we decide whether we're gonna go for a high cost 5 00:00:06.920 --> 00:00:09.920 product or service or a low cost, high volume product 6 00:00:09.920 --> 00:00:12.040 or service, are there ways that we can increase margin 7 00:00:12.040 --> 00:00:14.200 and provide more value? 8 00:00:14.200 --> 00:00:17.200 All this and more, plus how to add guarantees 9 00:00:17.200 --> 00:00:18.400 to your offer to make them so good, 10 00:00:18.400 --> 00:00:19.920 people feel stupid saying no. 11 00:00:19.920 --> 00:00:22.720 This is the part two of the Greg Hickman podcast 12 00:00:22.720 --> 00:00:25.120 we talk about, agency owners, how they can market 13 00:00:25.120 --> 00:00:27.200 their business in also, probably more importantly, 14 00:00:27.200 --> 00:00:29.640 how the small businesses those agencies are serving 15 00:00:29.640 --> 00:00:31.960 can productize their services in a way to get more customers 16 00:00:31.960 --> 00:00:33.960 saying yes at higher prices and doing so 17 00:00:33.960 --> 00:00:35.680 with even more margin than they ever thought of. 18 00:00:35.680 --> 00:00:36.520 Enjoy. 19 00:00:37.400 --> 00:00:41.640 Sell the farm, give away everything, get people to say yes, 20 00:00:41.640 --> 00:00:45.440 get people to give you money, and then we'll have cash flow 21 00:00:45.440 --> 00:00:47.800 that we can start solving problems with. 22 00:00:47.800 --> 00:00:50.040 Welcome to the game where we talk about how to get more customers, 23 00:00:50.040 --> 00:00:52.040 how to make more per customer and how to keep them longer 24 00:00:52.040 --> 00:00:53.840 and the many failures and lessons we have learned 25 00:00:53.840 --> 00:00:54.680 along the way. 26 00:00:54.680 --> 00:00:56.240 I hope you enjoy and subscribe. 27 00:00:57.240 --> 00:01:00.360 That mini win, I think in the book you talked about, 28 00:01:00.360 --> 00:01:04.000 like you're getting them like a $2,000 sale in seven days, 29 00:01:04.000 --> 00:01:07.080 whatever, is that just a strategy to show them 30 00:01:07.080 --> 00:01:08.720 that they can make 2K doing this? 31 00:01:08.720 --> 00:01:12.480 But is it a piece of what they would be doing 32 00:01:12.480 --> 00:01:13.880 as they roll out those other things 33 00:01:13.880 --> 00:01:15.760 that you said felt heavier? 34 00:01:15.760 --> 00:01:17.240 It can, it can be either. 35 00:01:17.240 --> 00:01:19.080 A weight loss example to just give it totally, 36 00:01:19.080 --> 00:01:21.360 like a B to C example, like we would give people 37 00:01:21.360 --> 00:01:25.080 basically a starvation bag for the first few weeks, 38 00:01:25.080 --> 00:01:26.880 even though we knew it wasn't sustainable. 39 00:01:26.880 --> 00:01:29.680 And we, yeah, because there's tons of research that supports 40 00:01:29.680 --> 00:01:32.320 that people actually have better long-term weight loss outcomes 41 00:01:32.320 --> 00:01:34.480 if they have a short-term win. 42 00:01:34.480 --> 00:01:36.640 So if someone loses 10 pounds in the first two weeks, 43 00:01:36.640 --> 00:01:38.080 now they believe me, and I'm saying, 44 00:01:38.080 --> 00:01:40.680 hey, this isn't going to be something we can do forever. 45 00:01:40.680 --> 00:01:41.840 I just want to show you that our stuff works 46 00:01:41.840 --> 00:01:42.680 when we know what we're doing. 47 00:01:42.680 --> 00:01:43.720 We have this in our back pocket. 48 00:01:43.720 --> 00:01:45.600 This is to show you we do know what we're doing, 49 00:01:45.600 --> 00:01:47.600 but we do think we need to transition to this, 50 00:01:47.600 --> 00:01:48.520 which is going to be slower, 51 00:01:48.520 --> 00:01:50.440 but we're going to be able to help you lose it for good, right? 52 00:01:50.440 --> 00:01:51.800 And so now it's like, but if I said, 53 00:01:51.800 --> 00:01:53.360 hey, it's going to be slow, we're going to help you lose it for good. 54 00:01:53.360 --> 00:01:54.680 It's like the SEO argument. 55 00:01:54.680 --> 00:01:55.840 How long am I going to wait? 56 00:01:55.840 --> 00:01:57.760 How much trust do I have to have? 57 00:01:57.760 --> 00:01:59.440 Because everybody, it's like, yeah, 58 00:01:59.440 --> 00:02:01.400 it's going to take six months for SEO to start working. 59 00:02:01.400 --> 00:02:02.440 Maybe, right? 60 00:02:02.440 --> 00:02:04.000 But maybe you're just a scam artist from online 61 00:02:04.000 --> 00:02:06.440 that's going to say that and just collect six months of billings 62 00:02:06.440 --> 00:02:07.920 and not literally do nothing. 63 00:02:07.920 --> 00:02:10.360 And the way that you create these early wins 64 00:02:10.360 --> 00:02:11.600 is again, you look at the customers 65 00:02:11.600 --> 00:02:13.200 that you have had the most success with. 66 00:02:13.200 --> 00:02:15.920 And then you say, what did the top 10% of my customers 67 00:02:15.920 --> 00:02:16.920 go through? 68 00:02:16.920 --> 00:02:19.760 What was different about what they went through in the beginning? 69 00:02:19.760 --> 00:02:21.960 First is what these guys went through in the beginning. 70 00:02:21.960 --> 00:02:24.240 And then that becomes at least preliminarily 71 00:02:24.240 --> 00:02:25.520 because you don't have any baseline. 72 00:02:25.520 --> 00:02:27.040 Those become your activation points, 73 00:02:27.040 --> 00:02:28.800 which means that in the first 30 days, 74 00:02:28.800 --> 00:02:30.280 these are the one or two or three things 75 00:02:30.280 --> 00:02:31.880 that we want to deliver to every customer. 76 00:02:31.880 --> 00:02:33.440 And then all of the client experience 77 00:02:33.440 --> 00:02:35.240 and onboarding and customer success 78 00:02:35.240 --> 00:02:37.600 is geared around driving those activation points. 79 00:02:37.600 --> 00:02:41.040 Because we know, like this is posthumously correlated, right? 80 00:02:41.040 --> 00:02:42.520 So we're looking after the fact and say, 81 00:02:42.520 --> 00:02:43.720 well, these things happened here. 82 00:02:43.720 --> 00:02:45.320 We don't know if all of them are important, 83 00:02:45.320 --> 00:02:46.560 but we know that if we do all of them, 84 00:02:46.560 --> 00:02:47.840 we'll probably have some success. 85 00:02:47.840 --> 00:02:49.720 And then piece by piece, we'll discover more. 86 00:02:49.720 --> 00:02:51.320 And we may be able to peel some back and be like, 87 00:02:51.360 --> 00:02:52.760 okay, we thought this was important. 88 00:02:52.760 --> 00:02:53.840 They don't care about as much as this, 89 00:02:53.840 --> 00:02:56.640 but these two things are the main thing, right? 90 00:02:56.640 --> 00:02:58.840 Like in HubSpot, when they get a new customer on, 91 00:02:58.840 --> 00:02:59.880 they know that they have to get someone 92 00:02:59.880 --> 00:03:02.120 to use five different functionalities in the CRM. 93 00:03:02.120 --> 00:03:04.000 If they use five different functionalities or more, 94 00:03:04.000 --> 00:03:06.240 then the likely they stick is like forever, right? 95 00:03:06.240 --> 00:03:08.120 But you got to get them to five, right? 96 00:03:08.120 --> 00:03:10.240 And so I know that in a different CRM world 97 00:03:10.240 --> 00:03:11.600 for online trainers, 98 00:03:11.600 --> 00:03:13.000 because we're involved in that space too, 99 00:03:13.000 --> 00:03:14.800 they have to get their first five clients. 100 00:03:14.800 --> 00:03:16.880 So if they get five clients, they never can. 101 00:03:16.880 --> 00:03:17.760 But they need five. 102 00:03:17.760 --> 00:03:19.800 And we have to deliver five as fast as possible. 103 00:03:19.800 --> 00:03:22.480 So even if the strategy that you use to get the first five 104 00:03:22.480 --> 00:03:24.480 is different than you get to get the next 100, 105 00:03:24.480 --> 00:03:26.880 if this one happens faster, then do this one first 106 00:03:26.880 --> 00:03:30.200 and then earn the trust to then start this journey. 107 00:03:30.200 --> 00:03:32.280 If you want to feel cool, show them 108 00:03:32.280 --> 00:03:33.840 you can run paid ads and get them leads, 109 00:03:33.840 --> 00:03:35.280 so they know you know what you're talking about 110 00:03:35.280 --> 00:03:36.680 and then start the SEO journey. 111 00:03:36.680 --> 00:03:38.040 Makes sense, yeah. 112 00:03:38.040 --> 00:03:41.400 So you talk about, I forget what you called it. 113 00:03:41.400 --> 00:03:43.760 Maybe it was the cycle of price 114 00:03:43.760 --> 00:03:45.240 or the, I forget which one it was, 115 00:03:45.240 --> 00:03:47.840 but it was tied to the delivery cube. 116 00:03:47.840 --> 00:03:49.400 And I've looked through the book multiple times 117 00:03:49.520 --> 00:03:50.560 if I can find where it is. 118 00:03:50.560 --> 00:03:51.680 And I'm like, at this point, 119 00:03:51.680 --> 00:03:53.720 I don't know if it was one of your YouTube videos 120 00:03:53.720 --> 00:03:56.000 or because I listen to everything you do. 121 00:03:56.000 --> 00:03:58.800 But you talk somewhere about like when you are identifying 122 00:03:58.800 --> 00:04:02.080 how you're going to deliver the solution delivery vehicle 123 00:04:02.080 --> 00:04:03.600 of all those problems, 124 00:04:03.600 --> 00:04:05.840 there's the ones obviously you want to aim 125 00:04:05.840 --> 00:04:08.080 in totality high value low cost, 126 00:04:08.080 --> 00:04:12.080 which is where the ability to go to information 127 00:04:12.080 --> 00:04:14.600 and showing people that done with you is really strong. 128 00:04:14.600 --> 00:04:16.120 But somewhere you said, 129 00:04:16.120 --> 00:04:20.280 it's okay to have some high value high cost things, 130 00:04:20.280 --> 00:04:23.040 but like probably not more than one or two. 131 00:04:23.040 --> 00:04:23.880 Yes. 132 00:04:23.880 --> 00:04:27.400 And so I'm a big believer in kind of utilizing the Tesla model. 133 00:04:27.400 --> 00:04:30.960 So we talk about that fairly often here as well. 134 00:04:30.960 --> 00:04:31.800 Okay, yeah. 135 00:04:31.800 --> 00:04:33.240 So a lot of people get started trying it, 136 00:04:33.240 --> 00:04:35.120 like everyone tries to think about scale 137 00:04:35.120 --> 00:04:37.280 before they have value, which is right, 138 00:04:37.280 --> 00:04:39.200 before they even know who their avatar is, right? 139 00:04:39.200 --> 00:04:40.200 And I think that's just, 140 00:04:40.200 --> 00:04:41.040 I think it's just silly. 141 00:04:41.040 --> 00:04:42.640 There's no other word for it, it's just silly. 142 00:04:42.640 --> 00:04:45.320 And instead you have way better marketing, 143 00:04:45.320 --> 00:04:47.000 way better stories, know your avatar better, 144 00:04:47.000 --> 00:04:48.360 solve more problems. 145 00:04:48.360 --> 00:04:50.560 Just have way more, your hands will be, 146 00:04:50.560 --> 00:04:51.560 you know, you roll your sleeves up, 147 00:04:51.560 --> 00:04:52.640 you get way more dirty. 148 00:04:52.640 --> 00:04:54.760 You don't need to actually worry about this done for you 149 00:04:54.760 --> 00:04:56.000 think being your business. 150 00:04:56.000 --> 00:04:57.400 Everyone has this fallacy and thinking 151 00:04:57.400 --> 00:04:58.400 that like the first thing they sell 152 00:04:58.400 --> 00:05:00.240 is something they were so close to life. 153 00:05:00.240 --> 00:05:02.960 And just consider it getting paid to do R&D. 154 00:05:02.960 --> 00:05:03.800 That's what it is. 155 00:05:03.800 --> 00:05:04.960 You're getting a paid to do research 156 00:05:04.960 --> 00:05:07.400 and acquiring customers profitably for done for you 157 00:05:07.400 --> 00:05:09.320 is probably the easiest thing in the entire world 158 00:05:09.320 --> 00:05:11.560 because it's so easy to sell, right? 159 00:05:11.560 --> 00:05:14.240 It is harder to deliver, absolutely. 160 00:05:14.280 --> 00:05:16.480 But if you learn how to deliver that 161 00:05:16.480 --> 00:05:17.440 because you should, 162 00:05:17.440 --> 00:05:19.520 then doing the next level down and doing done with you 163 00:05:19.520 --> 00:05:21.840 or doing two levels down and doing complete DIY 164 00:05:21.840 --> 00:05:23.600 becomes easier because now you have the story 165 00:05:23.600 --> 00:05:24.880 that works and makes sense. 166 00:05:24.880 --> 00:05:26.200 It's like, hey, we have ever done with you clients 167 00:05:26.200 --> 00:05:27.600 that are $20,000 a month, 168 00:05:27.600 --> 00:05:29.560 but if you wanted to use the same system that we use 169 00:05:29.560 --> 00:05:31.720 and will help you along the way, 170 00:05:31.720 --> 00:05:33.240 you can just pay 10 grand one time 171 00:05:33.240 --> 00:05:34.280 and learn the whole system. 172 00:05:34.280 --> 00:05:35.520 You know, or get certified through us 173 00:05:35.520 --> 00:05:36.840 or blah, blah, blah, blah, blah, right? 174 00:05:36.840 --> 00:05:40.040 And so it's way easier to require customers 175 00:05:40.040 --> 00:05:42.320 with high done for you because most people, 176 00:05:42.320 --> 00:05:44.960 and I don't know if I told the story in a YouTube thing, 177 00:05:44.960 --> 00:05:47.000 but I had a friend who got laid off, 178 00:05:47.000 --> 00:05:49.480 used a car tractor and he was like, 179 00:05:49.480 --> 00:05:50.680 hey man, I need to make money. 180 00:05:50.680 --> 00:05:51.440 I was like, do you want to make money 181 00:05:51.440 --> 00:05:52.280 or do you want to be a car tractor? 182 00:05:52.280 --> 00:05:53.120 I was like, I want to make money. 183 00:05:53.120 --> 00:05:53.960 I was like, cool. 184 00:05:53.960 --> 00:05:54.800 So just use the gym one system. 185 00:05:54.800 --> 00:05:55.800 So he just started selling weight loss 186 00:05:55.800 --> 00:05:57.600 and not even doing the car tractor thing. 187 00:05:57.600 --> 00:06:00.440 And in the first month or two months, 188 00:06:00.440 --> 00:06:01.480 he actually made no sales. 189 00:06:01.480 --> 00:06:03.480 And I was like, whoa, what's going on? 190 00:06:03.480 --> 00:06:05.200 And he was like, dude, 191 00:06:05.200 --> 00:06:06.520 I'm still trying to get my offer right 192 00:06:06.520 --> 00:06:07.760 because I don't want to over commit 193 00:06:07.760 --> 00:06:08.680 and not be able to fulfill. 194 00:06:08.680 --> 00:06:11.000 And I was like, how many clients do you was like, zero? 195 00:06:11.000 --> 00:06:13.360 And I was like, why are we having this discussion? 196 00:06:13.360 --> 00:06:16.640 I was like, sell the farm, give away everything, 197 00:06:16.640 --> 00:06:19.680 get people to say yes, get people to give you money. 198 00:06:19.680 --> 00:06:21.960 And then we'll have cash flow 199 00:06:21.960 --> 00:06:23.880 that we can start solving problems with, right? 200 00:06:23.880 --> 00:06:25.640 And you have no idea what your clients want 201 00:06:25.640 --> 00:06:27.440 because you can fucking sold anyone yet. 202 00:06:27.440 --> 00:06:29.560 So like, go sell some stuff. 203 00:06:29.560 --> 00:06:31.120 And then what happens is, 204 00:06:31.120 --> 00:06:32.240 once you have all the solutions 205 00:06:32.240 --> 00:06:33.240 that you plan on delivering, 206 00:06:33.240 --> 00:06:34.360 maybe your first couple of people, 207 00:06:34.360 --> 00:06:35.960 you deliver everything, right? 208 00:06:35.960 --> 00:06:37.360 And even if you broke even on that, 209 00:06:37.360 --> 00:06:38.920 I'd rather break even with cash flow 210 00:06:38.960 --> 00:06:40.480 because once I have flow, right? 211 00:06:40.480 --> 00:06:42.320 Create flow, monetize flow, then add friction. 212 00:06:42.320 --> 00:06:44.840 So it's like, let's create the flow with a crazy offer. 213 00:06:44.840 --> 00:06:46.560 That's what the book's about, right? 214 00:06:46.560 --> 00:06:48.520 Monetize the flow because we can charge a lot for it 215 00:06:48.520 --> 00:06:50.120 because we're gonna go to their house. 216 00:06:50.120 --> 00:06:51.800 And you feel like, oh, I don't know if that's sustainable. 217 00:06:51.800 --> 00:06:54.120 I flew around the country for a year and a half, 218 00:06:54.120 --> 00:06:56.440 actually going to people's gyms and working their front desk. 219 00:06:56.440 --> 00:06:57.440 And so people forget that. 220 00:06:57.440 --> 00:06:58.880 They're like, man, I want to do a gym lunch sit 221 00:06:58.880 --> 00:07:00.080 but you're not willing to do it, Alex did. 222 00:07:00.080 --> 00:07:01.360 So you got to pick, right? 223 00:07:01.360 --> 00:07:02.840 And so if you want to be in a niche, 224 00:07:02.840 --> 00:07:05.400 then go work the front desk, go fly out to a salon, 225 00:07:05.400 --> 00:07:07.720 go fly out to five salon, tensilons, right? 226 00:07:07.720 --> 00:07:09.920 And learn the different markets, learn the different nuances, 227 00:07:09.920 --> 00:07:11.880 learn how different salons work, right? 228 00:07:11.880 --> 00:07:13.120 And then on your sales cause, 229 00:07:13.120 --> 00:07:14.720 when you do decide to make your pivot 230 00:07:14.720 --> 00:07:16.800 down to a more scalable model, right? 231 00:07:16.800 --> 00:07:19.280 You can say, listen, 80% of clinics are doing this. 232 00:07:19.280 --> 00:07:20.240 This is all horseshit. 233 00:07:20.240 --> 00:07:22.280 The 20% that drives all the profit is this. 234 00:07:22.280 --> 00:07:23.880 That's what I'm gonna help you focus on. 235 00:07:23.880 --> 00:07:26.280 So then you end up streaming and stacking everything 236 00:07:26.280 --> 00:07:28.760 that doesn't matter out and just focusing, 237 00:07:28.760 --> 00:07:31.600 productizing on the most valuable highest profit things 238 00:07:31.600 --> 00:07:33.320 that you discovered through the R&D 239 00:07:33.320 --> 00:07:34.480 that you got paid to do. 240 00:07:34.480 --> 00:07:37.720 Yes, for some of the newer clients 241 00:07:37.720 --> 00:07:39.680 that might be watching this end of the replay, 242 00:07:39.680 --> 00:07:42.280 this is what we tell you to do. 243 00:07:42.280 --> 00:07:43.600 In the book, you know, like you said, 244 00:07:43.600 --> 00:07:45.200 you list out all of the things, 245 00:07:45.200 --> 00:07:46.280 all the problems that they have 246 00:07:46.280 --> 00:07:47.640 and then identify solutions 247 00:07:47.640 --> 00:07:49.560 and you take them to the delivery queue, 248 00:07:49.560 --> 00:07:50.640 what are different ways, 249 00:07:50.640 --> 00:07:52.640 which is an amazing exercise. 250 00:07:52.640 --> 00:07:53.640 But something we both, 251 00:07:53.640 --> 00:07:56.040 I believe, have similar thoughts on is 252 00:07:56.040 --> 00:07:59.440 to sell something up front that has an end date 253 00:07:59.440 --> 00:08:00.640 with a clear outcome. 254 00:08:00.640 --> 00:08:04.040 And then, as you call it, downsell your upsell. 255 00:08:04.080 --> 00:08:06.040 So can you talk about like when someone has 256 00:08:06.040 --> 00:08:08.040 this laundry list of things that they can do, 257 00:08:08.040 --> 00:08:10.160 how do you figure out where to draw that line 258 00:08:10.160 --> 00:08:12.520 on what should the front end be? 259 00:08:12.520 --> 00:08:15.040 So you want consumables to be recurring 260 00:08:15.040 --> 00:08:18.560 and you want the one-time things to be the one-time value, 261 00:08:18.560 --> 00:08:20.240 right? That's the simple, simple statement. 262 00:08:20.240 --> 00:08:22.360 So I actually just drew this out yesterday 263 00:08:22.360 --> 00:08:23.360 because I was thinking about this. 264 00:08:23.360 --> 00:08:24.920 So maybe this will be some off the, 265 00:08:24.920 --> 00:08:26.760 you might see some YouTube content on this. 266 00:08:26.760 --> 00:08:29.160 If I'm building, if I'm building recurring revenue, 267 00:08:29.160 --> 00:08:31.880 you've got physical, digital, 268 00:08:31.880 --> 00:08:35.520 and then you've got collateralized and consumable. 269 00:08:35.520 --> 00:08:37.240 And so I'm just going to go, 270 00:08:37.240 --> 00:08:38.440 I'm going to super zoom out 271 00:08:38.440 --> 00:08:39.800 and then I'm going to come back in, all right? 272 00:08:39.800 --> 00:08:43.840 So a simple consumable would be like toothpaste, right? 273 00:08:43.840 --> 00:08:45.520 Known here is really on subscription for toothpaste, 274 00:08:45.520 --> 00:08:46.680 but a toothpaste company gets sold 275 00:08:46.680 --> 00:08:49.600 in a bought-by-proctor again if we're resilient dollars, right? 276 00:08:49.600 --> 00:08:51.880 And it's because you're still recurring, 277 00:08:51.880 --> 00:08:54.640 you're just buying once every month or whatever, right? 278 00:08:54.640 --> 00:08:56.480 But it is the weakest type of recurring 279 00:08:56.480 --> 00:08:59.080 and it's a physical consumable, right? 280 00:08:59.080 --> 00:09:02.480 A level above that would be a physical that's collateralized. 281 00:09:02.480 --> 00:09:04.560 So razors, you buy the razor 282 00:09:04.560 --> 00:09:06.360 and then the consumables are the razor. 283 00:09:06.360 --> 00:09:08.800 You buy the printer and the consumables are the end cartridge. 284 00:09:08.800 --> 00:09:10.120 You put your stuff in storage 285 00:09:10.120 --> 00:09:11.960 and then you have to keep paying for the storage, 286 00:09:11.960 --> 00:09:13.080 but there's collateral, right? 287 00:09:13.080 --> 00:09:15.560 They have something of yours that they're paying for. 288 00:09:15.560 --> 00:09:17.400 These are both in the physical realm. 289 00:09:17.400 --> 00:09:20.080 In the digital realm, same thing versus consumables 290 00:09:20.080 --> 00:09:22.320 and things that are collateralized. 291 00:09:22.320 --> 00:09:24.800 So the ideal world in terms of business value 292 00:09:24.800 --> 00:09:27.280 is to have something as purely digital and as collateral, 293 00:09:27.280 --> 00:09:28.800 which is why CRMs are so valuable 294 00:09:28.800 --> 00:09:31.000 because they have all your payment info, all your contacts, 295 00:09:31.000 --> 00:09:31.920 all your everything. 296 00:09:31.920 --> 00:09:33.200 And for you to leave is really hard 297 00:09:33.200 --> 00:09:35.560 because they have collateral, they have your stuff, right? 298 00:09:35.560 --> 00:09:37.280 Dropbox has all your files. 299 00:09:37.280 --> 00:09:39.160 So it's hard to leave those, right? 300 00:09:39.160 --> 00:09:41.280 And so to go to the consumables, 301 00:09:41.280 --> 00:09:43.680 that's where one of the things that a business is going to consume 302 00:09:43.680 --> 00:09:46.320 on a regular basis, they're going to consume financial services. 303 00:09:46.320 --> 00:09:47.520 They're going to have a bookkeeper. 304 00:09:47.520 --> 00:09:49.400 They're going to consume marketing services. 305 00:09:49.400 --> 00:09:51.760 So they're going to have an agency or a media buyer, right? 306 00:09:51.760 --> 00:09:55.280 And so like for us, it's like you want to sell the system 307 00:09:55.280 --> 00:09:56.640 as a one-time thing. 308 00:09:56.640 --> 00:09:59.080 And then all the things that the system consumes 309 00:09:59.080 --> 00:10:00.320 as the recurring thing. 310 00:10:00.320 --> 00:10:03.200 So you've got the machine and then you've got inputs and outputs, 311 00:10:03.200 --> 00:10:04.040 right? 312 00:10:04.040 --> 00:10:05.920 So you build the machine for the one-time 313 00:10:05.920 --> 00:10:07.040 and then you sell the inputs 314 00:10:07.040 --> 00:10:08.480 because they need more inputs over and over again 315 00:10:08.480 --> 00:10:09.760 once you've helped them build the machine. 316 00:10:09.760 --> 00:10:11.560 And then you can price those according to what the machine 317 00:10:11.560 --> 00:10:14.560 that you have built for them creates. 318 00:10:14.560 --> 00:10:16.040 And so this is the biggest question I got all the time. 319 00:10:16.040 --> 00:10:16.880 I'm just going to tack it on 320 00:10:16.880 --> 00:10:18.920 because I figure somebody's going to ask it anyways. 321 00:10:18.920 --> 00:10:19.960 My clients are broke. 322 00:10:19.960 --> 00:10:21.360 They can't afford what I want to charge. 323 00:10:21.360 --> 00:10:23.400 Well, the average gym owner makes $36,000 a year, 324 00:10:23.400 --> 00:10:24.400 a little less than that actually. 325 00:10:24.400 --> 00:10:25.920 And we charge 42, right? 326 00:10:25.920 --> 00:10:27.720 And that's our back-end program, front-end program 16. 327 00:10:27.720 --> 00:10:29.200 So we have 16 and then 42. 328 00:10:29.200 --> 00:10:30.040 That's a lot of money. 329 00:10:30.040 --> 00:10:32.680 And that's 42,000 just for the record. 330 00:10:32.680 --> 00:10:35.080 And so that's what they make more than what they make in a year. 331 00:10:35.080 --> 00:10:37.480 That's more than what they make currently. 332 00:10:37.480 --> 00:10:38.720 But not more than what they make 333 00:10:38.720 --> 00:10:40.720 once they use the machine that we have them built. 334 00:10:40.720 --> 00:10:43.000 So we price based on the value that we know 335 00:10:43.000 --> 00:10:45.720 that our machine is going to help them produce, right? 336 00:10:45.720 --> 00:10:47.240 And so it's the same thing we're like, 337 00:10:47.240 --> 00:10:49.480 and this is why we were able to just crush everybody 338 00:10:49.480 --> 00:10:50.400 who's in the agency world 339 00:10:50.400 --> 00:10:52.680 because they would try and go to gym owners 340 00:10:52.680 --> 00:10:55.320 and sell them leads or sell them services. 341 00:10:55.320 --> 00:10:57.160 And they could never charge more than 1,000 bucks a month 342 00:10:57.160 --> 00:10:58.320 because there was so little margin 343 00:10:58.320 --> 00:11:00.320 because gym owners weren't making any money on the list 344 00:11:00.320 --> 00:11:02.160 they had and they'd get priced out over 10 bucks a lead. 345 00:11:02.160 --> 00:11:03.320 And they'd say, hey, I can't do this anymore. 346 00:11:03.320 --> 00:11:04.280 It's 10 bucks a lead. 347 00:11:04.280 --> 00:11:06.360 Our guys can spend 50 bucks a lead 348 00:11:06.360 --> 00:11:08.240 because they make so much more money per customer 349 00:11:08.240 --> 00:11:10.160 because we show them how to sell high ticket, 350 00:11:10.160 --> 00:11:12.320 how to sell up the sales room, what the offer's supposed to be. 351 00:11:12.320 --> 00:11:13.880 We give them all the fulfillment stuff. 352 00:11:13.880 --> 00:11:16.120 We show them how to sell supplements, transaction. 353 00:11:16.120 --> 00:11:17.640 We give them all the help to do that 354 00:11:17.640 --> 00:11:19.040 so that they can liquidate the cost of acquisition 355 00:11:19.040 --> 00:11:21.040 or make a profit on the acquisition and sell the back end. 356 00:11:21.040 --> 00:11:23.600 And so the idea is you sell the system, right? 357 00:11:23.600 --> 00:11:25.320 And then the recurring, the downsell, the upsell 358 00:11:25.320 --> 00:11:27.320 is gonna be the consumables of that system. 359 00:11:27.320 --> 00:11:29.640 In a coaching training consulting model 360 00:11:29.640 --> 00:11:31.720 that done with you, what does that look like 361 00:11:31.720 --> 00:11:34.440 from a consumable piece on the back end then? 362 00:11:34.440 --> 00:11:36.200 So we worked with agencies through Allen. 363 00:11:36.200 --> 00:11:38.080 So what they would sell on the agency front end 364 00:11:38.080 --> 00:11:39.920 was they would sell the system, right? 365 00:11:39.920 --> 00:11:41.000 That's the defined end thing. 366 00:11:41.000 --> 00:11:41.920 Is it by the end of this? 367 00:11:41.920 --> 00:11:43.600 So like, what's the clear deliverable? 368 00:11:43.600 --> 00:11:46.920 So let's say it's salon owners, right? 369 00:11:46.920 --> 00:11:48.360 So it's like, okay, salon owners, 370 00:11:48.360 --> 00:11:49.720 I'm gonna help you double the average ticket 371 00:11:49.720 --> 00:11:50.760 of the person who walks in the door 372 00:11:50.760 --> 00:11:53.360 and five times the LTV by using our four step, 373 00:11:53.360 --> 00:11:55.440 you know, appointment system that XYZs 374 00:11:55.440 --> 00:11:57.320 and we'll put physical products in 375 00:11:57.320 --> 00:11:59.080 and we'll show you how to add recurring 376 00:11:59.080 --> 00:12:01.680 with hair colorings and cuts and whatever, right? 377 00:12:01.680 --> 00:12:02.640 That's the system. 378 00:12:02.640 --> 00:12:04.560 Once they have the model, then they automatically 379 00:12:04.560 --> 00:12:07.440 make way more money from everything else that they ever do. 380 00:12:07.440 --> 00:12:09.040 Awesome, that means that we can charge more. 381 00:12:09.040 --> 00:12:10.560 Cool, so let's solve that problem first 382 00:12:10.560 --> 00:12:12.960 so that we can then price what we want. 383 00:12:12.960 --> 00:12:15.320 And so then what we sold on the back end was shows 384 00:12:15.320 --> 00:12:16.240 because that's what they consume. 385 00:12:16.240 --> 00:12:17.400 They consume shows. 386 00:12:17.400 --> 00:12:19.400 That's what the machine that we built them eats. 387 00:12:19.400 --> 00:12:20.960 It eats people walking in the door. 388 00:12:20.960 --> 00:12:23.360 And so we have to sell them the people that it has to eat. 389 00:12:23.360 --> 00:12:26.480 And so on the gym side, what we did was slightly different, 390 00:12:26.480 --> 00:12:28.880 but same concept is that we would test, 391 00:12:28.880 --> 00:12:33.480 we spent about 50,000 a month testing ads in a bunch of markets. 392 00:12:33.480 --> 00:12:34.600 We had like 10 or 20 markets 393 00:12:34.600 --> 00:12:36.680 that we do representative tests in. 394 00:12:36.680 --> 00:12:38.320 And then when we had the winners, 395 00:12:38.320 --> 00:12:40.720 we would just license the winners to everyone. 396 00:12:40.720 --> 00:12:43.960 So for them, they knew how to run ads, they had the machine, 397 00:12:43.960 --> 00:12:45.880 but I would immediately save them 398 00:12:45.880 --> 00:12:48.200 on all of the lost ads spend 399 00:12:48.200 --> 00:12:49.520 that they would normally have testing 400 00:12:49.520 --> 00:12:50.920 and not getting results. 401 00:12:50.920 --> 00:12:52.800 And so if you knew that every single ad that you had 402 00:12:52.800 --> 00:12:55.000 was a winner, how valuable would that be? 403 00:12:55.000 --> 00:12:55.680 Very. 404 00:12:55.680 --> 00:12:58.680 And for us, it's high margin because it's media, right? 405 00:12:58.680 --> 00:13:00.120 So it's 100% gross margins. 406 00:13:00.120 --> 00:13:03.320 And so that was one of the things that we had on the back end. 407 00:13:03.320 --> 00:13:06.120 In addition to that, it's like, what are the other problems 408 00:13:06.120 --> 00:13:09.600 right that are gonna come up from having this new machine? 409 00:13:09.600 --> 00:13:11.000 Well, now they have to hire more trainers. 410 00:13:11.000 --> 00:13:12.840 Well, our hiring system's gonna be on the back end. 411 00:13:12.840 --> 00:13:13.880 You have to hire salespeople. 412 00:13:13.880 --> 00:13:17.280 So the sales scripts and the ads for hiring salespeople 413 00:13:17.280 --> 00:13:18.120 on the back end, 414 00:13:18.120 --> 00:13:18.960 you have to train those people. 415 00:13:18.960 --> 00:13:21.200 That's why we have something that we call boiler rooms 416 00:13:21.200 --> 00:13:23.120 so that all of the salespeople from all the gyms 417 00:13:23.120 --> 00:13:25.320 meet every morning on a call that we host 418 00:13:25.320 --> 00:13:27.240 to train their sales teams, right? 419 00:13:27.240 --> 00:13:28.520 Because that's something that's consumable 420 00:13:28.520 --> 00:13:30.120 that they're gonna have to keep doing over and over again. 421 00:13:30.120 --> 00:13:31.720 So it's like, what are the activities in the business 422 00:13:31.720 --> 00:13:34.360 that have to continue to occur as a result of the system 423 00:13:34.360 --> 00:13:35.360 that we sold them? 424 00:13:35.360 --> 00:13:36.600 And then those are all the things 425 00:13:36.600 --> 00:13:38.640 that we will bundle and sell on the back end. 426 00:13:38.640 --> 00:13:39.960 So when people are like, I don't know what I'm gonna sell 427 00:13:39.960 --> 00:13:40.800 on the back, it's like it means 428 00:13:40.800 --> 00:13:43.200 because you haven't solved any problems on the front. 429 00:13:43.200 --> 00:13:45.000 Self-problems on the front, there's gonna be problems 430 00:13:45.000 --> 00:13:47.240 on the back and you just get to solve those problems. 431 00:13:48.800 --> 00:13:50.000 Real quick, guys, you guys already know 432 00:13:50.000 --> 00:13:53.280 that I don't run any ads on this and I don't sell anything. 433 00:13:53.280 --> 00:13:55.120 And so the only ask that I can ever have 434 00:13:55.120 --> 00:13:56.480 if you guys said that you helped me spread the word 435 00:13:56.480 --> 00:13:58.000 so we could not more entrepreneurs, 436 00:13:58.000 --> 00:13:59.720 make more money, feed their families, 437 00:13:59.720 --> 00:14:02.120 make better products and have better experiences 438 00:14:02.120 --> 00:14:03.720 for their employees and customers. 439 00:14:03.720 --> 00:14:05.920 And the only way we do that is if you can rate 440 00:14:05.920 --> 00:14:08.160 and review and share this podcast. 441 00:14:08.160 --> 00:14:09.480 So the single thing that I have to do, 442 00:14:09.480 --> 00:14:10.760 is you can just leave a review, 443 00:14:10.760 --> 00:14:12.680 let's take a 10 seconds or one type of the thumb, 444 00:14:12.680 --> 00:14:14.800 it means the absolute will to me and more importantly, 445 00:14:14.800 --> 00:14:16.800 it may change the world to someone else. 446 00:14:18.800 --> 00:14:21.800 You obviously talk in the book about guarantees 447 00:14:21.800 --> 00:14:24.400 and I've seen a lot of new ads out in the marketplace 448 00:14:24.400 --> 00:14:27.280 with guarantees, which I'm like, oh, they read the book. 449 00:14:27.280 --> 00:14:30.040 Can you talk about, like, I was having a conversation 450 00:14:30.040 --> 00:14:31.280 with one of my buddies about this, 451 00:14:31.280 --> 00:14:34.960 like you can obviously use a guarantee as like a sales tool 452 00:14:34.960 --> 00:14:36.720 if you're selling via the phone. 453 00:14:36.720 --> 00:14:39.440 Is that like V1 of rollout is I'm gonna use this 454 00:14:39.440 --> 00:14:41.840 as a tactic to get them over the line 455 00:14:41.840 --> 00:14:43.320 if there's an objection because sometimes 456 00:14:43.320 --> 00:14:46.240 there is an objection where even you do offer a guarantee. 457 00:14:46.240 --> 00:14:49.520 But then there's also the putting it in your marketing. 458 00:14:49.520 --> 00:14:50.800 Is that the appropriate rollout? 459 00:14:50.800 --> 00:14:52.880 Like test it on call as a tool 460 00:14:52.880 --> 00:14:56.000 and then if it's working, bring it out to the marketplace. 461 00:14:56.000 --> 00:14:57.600 Like, it almost is your offer 462 00:14:57.600 --> 00:14:59.120 if the guarantee can be good enough? 463 00:14:59.120 --> 00:15:00.880 I think that there's lots of ways to skin a cat. 464 00:15:00.880 --> 00:15:03.400 So I don't want to give like a broad sweeping general 465 00:15:03.400 --> 00:15:04.600 that I used to answer for that. 466 00:15:04.600 --> 00:15:06.400 I think testing it on the phone is a good idea 467 00:15:06.400 --> 00:15:08.440 and then making it the offer also works. 468 00:15:08.440 --> 00:15:10.360 I think there's two pieces that I think everyone, 469 00:15:10.360 --> 00:15:13.280 at least that I try to confer whatever tell people, 470 00:15:13.280 --> 00:15:18.280 is that one, for many people a guarantee is a structured risk. 471 00:15:18.600 --> 00:15:20.680 It's a risk where you know all the variables. 472 00:15:20.680 --> 00:15:22.200 So maybe you need to test it on the phone 473 00:15:22.200 --> 00:15:25.040 for a handful of people, see the results and then measure. 474 00:15:25.040 --> 00:15:26.000 But nine times out of 10, 475 00:15:26.000 --> 00:15:28.000 you're gonna make more money having the guarantee. 476 00:15:28.000 --> 00:15:30.080 You will sell more people than you otherwise would have, 477 00:15:30.080 --> 00:15:32.880 even minus the extra returns that you'll have to resolve. 478 00:15:32.880 --> 00:15:35.680 Most people though are still so afraid of making a guarantee 479 00:15:35.680 --> 00:15:37.960 that they make the contingencies so extreme 480 00:15:37.960 --> 00:15:39.880 that the guarantee is worthless. 481 00:15:39.880 --> 00:15:42.280 And the thing is is if the guarantee is worthless, 482 00:15:42.280 --> 00:15:44.360 it's not as compelling, right? 483 00:15:44.360 --> 00:15:47.760 So I try to guarantee things that I'm almost afraid of guaranteeing 484 00:15:47.760 --> 00:15:49.720 and if I'm afraid that it means they'll get greedy 485 00:15:49.720 --> 00:15:51.520 and if they get greedy it means I'll make money. 486 00:15:51.520 --> 00:15:54.360 And so big picture, here's just a thought experiment 487 00:15:54.360 --> 00:15:56.000 that I like to demonstrate the power of it. 488 00:15:56.000 --> 00:15:58.600 So most of us are in B2B services where listen to this. 489 00:15:58.600 --> 00:15:59.440 I would imagine. 490 00:15:59.440 --> 00:16:01.720 And so if you're B2B, let's say that your offer was, 491 00:16:01.720 --> 00:16:03.520 I'll double your profit in 30 days. 492 00:16:04.440 --> 00:16:06.440 I'll double your business in 30 days, whatever, right? 493 00:16:06.440 --> 00:16:07.680 Something crazy, right? 494 00:16:07.680 --> 00:16:10.120 Or I'll pay you twice the amount of money you paid me back. 495 00:16:10.120 --> 00:16:11.880 How difficult would it be to sell that? 496 00:16:11.880 --> 00:16:13.160 Not at all. 497 00:16:13.160 --> 00:16:15.680 And so if anyone is struggling to get customers, 498 00:16:15.680 --> 00:16:17.680 think about that as an extreme example, right? 499 00:16:17.680 --> 00:16:19.200 On the flip side, you have everyone else's stuff, 500 00:16:19.200 --> 00:16:20.720 which is, painting, maybe your results, 501 00:16:20.720 --> 00:16:21.720 maybe it doesn't really matter. 502 00:16:21.720 --> 00:16:24.000 I get paid anyway, that's what most people offer 503 00:16:24.000 --> 00:16:26.080 if you were to boil it down to super nuts, right? 504 00:16:26.080 --> 00:16:27.680 And so the question is, is there a place 505 00:16:27.680 --> 00:16:30.760 between extreme A and extreme B where we could peel off 506 00:16:30.760 --> 00:16:32.520 one or two of these things from this side, 507 00:16:32.520 --> 00:16:34.680 still have a really strong guarantee that's very compelling 508 00:16:34.680 --> 00:16:36.560 and ultimately sell more and make more? 509 00:16:36.560 --> 00:16:40.080 Now the underlying point of the entire book that's unspoken, 510 00:16:40.080 --> 00:16:42.560 which I think you picked up and a lot of people picked up, 511 00:16:42.560 --> 00:16:44.960 is that we were like, well, if I guarantee that 512 00:16:44.960 --> 00:16:46.680 what happens if they don't get the outcome, 513 00:16:46.680 --> 00:16:48.720 it's like they fix the product. 514 00:16:48.720 --> 00:16:51.120 So this was the first book from my knowledge 515 00:16:51.120 --> 00:16:53.880 that was wrapped as a marketing book, right? 516 00:16:53.880 --> 00:16:55.520 But the book does talk about marketing at all. 517 00:16:55.520 --> 00:16:58.400 It's a product, it's a book on product, right? 518 00:16:58.400 --> 00:17:00.920 And so the problem is people aren't providing value. 519 00:17:00.920 --> 00:17:02.000 That's the problem. 520 00:17:02.000 --> 00:17:04.120 And that's the basic problem for all the businesses 521 00:17:04.120 --> 00:17:05.080 that don't make money. 522 00:17:05.080 --> 00:17:08.160 Because you should be able to say a really bold claim. 523 00:17:08.160 --> 00:17:09.920 And if you can't say a really bold claim, 524 00:17:09.920 --> 00:17:12.040 then solve why you can't say a really bold claim 525 00:17:12.040 --> 00:17:14.360 rather than not making it. 526 00:17:14.360 --> 00:17:15.800 So I think it's just a better question, 527 00:17:15.800 --> 00:17:18.000 which is like, how could we guarantee 528 00:17:18.000 --> 00:17:19.560 that they're going to be able to overcome it? 529 00:17:19.560 --> 00:17:20.640 How could we do that? 530 00:17:20.640 --> 00:17:21.760 Because if you ask better questions, 531 00:17:21.760 --> 00:17:22.760 you'll get better answers, 532 00:17:22.760 --> 00:17:24.040 rather than how many quick people 533 00:17:24.040 --> 00:17:26.680 and just thinking it's a guarantee when it really is it. 534 00:17:26.680 --> 00:17:28.280 Because you create wealth. 535 00:17:28.280 --> 00:17:29.960 You create wealth through value, right? 536 00:17:29.960 --> 00:17:32.760 And that's like, you can only sell people once. 537 00:17:32.760 --> 00:17:34.920 And this is the whole, the day in Kennedy, 538 00:17:34.920 --> 00:17:37.760 most people get customers to make sales 539 00:17:37.760 --> 00:17:40.000 rather than make sales to get customers, right? 540 00:17:40.000 --> 00:17:41.720 And it sounds like a minor semantic difference, 541 00:17:41.720 --> 00:17:44.240 but it's important because most marketers 542 00:17:44.240 --> 00:17:46.720 that exist in the information or internet space, 543 00:17:46.720 --> 00:17:48.600 which is a lot of people, right? 544 00:17:48.600 --> 00:17:51.960 They try to get a customer to just make a sale. 545 00:17:51.960 --> 00:17:54.480 That's the whole goal for them is the sale, right? 546 00:17:54.480 --> 00:17:56.800 Rather than I'd rather create the relationship 547 00:17:56.800 --> 00:18:00.600 that I can then have an ongoing exchange of value over 548 00:18:00.600 --> 00:18:03.440 and over and over again, which makes you unbeatable. 549 00:18:03.440 --> 00:18:05.000 It's so hard to compete against a business 550 00:18:05.480 --> 00:18:07.120 that just consistently provides more value 551 00:18:07.120 --> 00:18:08.000 than they charge for. 552 00:18:08.920 --> 00:18:11.120 But people are like, well, then I need to lower my price. 553 00:18:11.120 --> 00:18:13.280 You can increase the price to value discrepancy 554 00:18:13.280 --> 00:18:14.320 by lowering your price. 555 00:18:14.320 --> 00:18:15.440 You absolutely can do that. 556 00:18:15.440 --> 00:18:16.280 That's what Netflix does. 557 00:18:16.280 --> 00:18:17.120 That's what Dropbox does. 558 00:18:17.120 --> 00:18:18.120 That's what you're gonna be like, 559 00:18:18.120 --> 00:18:19.120 think about it, $9 a month. 560 00:18:19.120 --> 00:18:21.040 Think about how many things that we charge in the internet 561 00:18:21.040 --> 00:18:22.840 that are charged for more than $9 a month 562 00:18:22.840 --> 00:18:24.320 that are way less viable than Netflix. 563 00:18:24.320 --> 00:18:26.160 A lot, right? 564 00:18:26.160 --> 00:18:28.680 But for most of us, we don't have tons and tons 565 00:18:28.680 --> 00:18:30.440 and tons of funding to be able to do that. 566 00:18:30.440 --> 00:18:34.080 And so the other way of doing is increasing the value, right? 567 00:18:34.080 --> 00:18:36.400 And then correspondingly increasing the price to a certain degree. 568 00:18:36.400 --> 00:18:38.880 So you still have a discrepancy between what you charge 569 00:18:38.880 --> 00:18:40.160 and what they get. 570 00:18:40.160 --> 00:18:42.000 But it's still far more than what you currently are doing, 571 00:18:42.000 --> 00:18:44.080 which is why it's like, how do I create value? 572 00:18:44.080 --> 00:18:45.600 Solve all the problems they have. 573 00:18:45.600 --> 00:18:48.040 And you don't have to do done for you for all the problems. 574 00:18:48.040 --> 00:18:49.160 That's why I created the delivery cube. 575 00:18:49.160 --> 00:18:51.280 It's like, I give the example groceries, 576 00:18:51.280 --> 00:18:52.280 because I think it's such a simple thing 577 00:18:52.280 --> 00:18:53.280 everybody can understand. 578 00:18:53.280 --> 00:18:55.080 If you need to start losing weight, 579 00:18:55.080 --> 00:18:57.280 Susan's got to start buying groceries differently, right? 580 00:18:57.280 --> 00:18:58.960 Well, let's think of all the different ways 581 00:18:58.960 --> 00:19:00.760 we could solve that problem, right? 582 00:19:00.760 --> 00:19:03.320 We could create a calculator that helps her calculate it. 583 00:19:03.320 --> 00:19:06.280 We could pre-make PDFs that already have the list for every week. 584 00:19:06.280 --> 00:19:09.800 We could pre-populate an Instacart that already has 585 00:19:09.800 --> 00:19:10.800 each week already pre-loaded. 586 00:19:10.800 --> 00:19:11.920 She clicks it with one button. 587 00:19:11.920 --> 00:19:14.120 We could have affiliation with a meal prep company. 588 00:19:14.120 --> 00:19:16.000 The first time we could do a tour with her, 589 00:19:16.000 --> 00:19:18.840 meet her at the grocery store and go with her at her local store. 590 00:19:18.840 --> 00:19:20.280 How valuable would that be? 591 00:19:20.280 --> 00:19:23.200 We could provide tech support during period of hours 592 00:19:23.200 --> 00:19:24.640 that when everyone goes grocery shopping, 593 00:19:24.640 --> 00:19:26.520 we're there to respond and say, hey, 594 00:19:26.520 --> 00:19:28.000 and they can text us if they're curious about 595 00:19:28.000 --> 00:19:30.760 if this can't have super, this can't have super is the right can't, right? 596 00:19:30.760 --> 00:19:31.920 Like, we could have call support. 597 00:19:31.920 --> 00:19:32.880 We could have, you know, I mean, 598 00:19:32.880 --> 00:19:34.480 all of these things are different ways 599 00:19:34.480 --> 00:19:36.200 to solving the same one problem. 600 00:19:36.200 --> 00:19:38.080 And so the idea is we do need to solve 601 00:19:38.080 --> 00:19:41.600 every problem or every perceived problem to get the sale, right? 602 00:19:41.600 --> 00:19:43.880 And then the business economics behind it 603 00:19:43.880 --> 00:19:46.040 is where we figure out which of these different ways 604 00:19:46.040 --> 00:19:48.040 of solving the problem provides the most value 605 00:19:48.040 --> 00:19:51.480 and has the most margin for us as a business and as most scalable. 606 00:19:51.480 --> 00:19:53.360 I know we have just a couple minutes left. 607 00:19:53.360 --> 00:19:56.960 Guys, again, if you haven't picked up his book yet, Amazon, 608 00:19:56.960 --> 00:19:59.080 you can get on Kindle, hard copy. 609 00:19:59.080 --> 00:20:02.320 He makes literally almost no money on any of these things 610 00:20:02.320 --> 00:20:04.800 he's doing it because he's an awesome human being. 611 00:20:04.800 --> 00:20:06.400 35 cents, my friend, 35 cents. 612 00:20:06.400 --> 00:20:08.960 Yeah, 35 cents, guys, 35 cents. 613 00:20:08.960 --> 00:20:11.720 But a couple just ran him off the cuff, quick question. 614 00:20:11.720 --> 00:20:14.240 So since starting acquisition.com, right? 615 00:20:14.240 --> 00:20:15.960 Like you mentioned, you'd say, you know, 616 00:20:15.960 --> 00:20:17.080 companies above three million, 617 00:20:17.080 --> 00:20:18.800 but really it's more like five million. 618 00:20:18.800 --> 00:20:21.840 And you have kind of an interesting dynamic of companies 619 00:20:21.840 --> 00:20:24.440 at least from what you've told me about what types they are. 620 00:20:24.440 --> 00:20:27.960 What's been the most like surprising thing 621 00:20:27.960 --> 00:20:29.880 that you've seen from these owners 622 00:20:29.880 --> 00:20:32.520 as you've kind of inserted yourself into their businesses? 623 00:20:33.440 --> 00:20:34.840 The businesses that we work best with 624 00:20:34.840 --> 00:20:37.560 have a clearly defined integrator and visionary. 625 00:20:37.560 --> 00:20:39.600 So married couples work really well 626 00:20:39.600 --> 00:20:43.120 or people who have two partners that are clearly defined. 627 00:20:43.120 --> 00:20:44.400 They work really well because usually 628 00:20:44.400 --> 00:20:46.680 they reach and they fix the model and they blow up. 629 00:20:46.680 --> 00:20:47.640 When it's a single founder, 630 00:20:47.640 --> 00:20:50.560 we need to help them find that integrator operator. 631 00:20:50.560 --> 00:20:51.760 Sometimes they're in the business, 632 00:20:51.760 --> 00:20:53.360 but maybe they're not as strong as they should be 633 00:20:53.360 --> 00:20:55.040 so that tends to take more time. 634 00:20:55.080 --> 00:20:58.040 But for most businesses that are at that three, five-ish million, 635 00:20:58.040 --> 00:20:59.320 we usually need to figure out a way 636 00:20:59.320 --> 00:21:01.000 to make the life-tongues profit per customer hire. 637 00:21:01.000 --> 00:21:03.560 That's usually, which is what's the next offering? 638 00:21:03.560 --> 00:21:04.840 You know, I mean, that we're going to provide 639 00:21:04.840 --> 00:21:05.840 and how are we going to sell it? 640 00:21:05.840 --> 00:21:06.680 How are we going to price it? 641 00:21:06.680 --> 00:21:07.680 How are we going to deliver on it 642 00:21:07.680 --> 00:21:08.880 in a way that's scalable and whatnot? 643 00:21:08.880 --> 00:21:10.760 And that usually will get someone from, you know, 644 00:21:10.760 --> 00:21:11.840 it depends on the size of the market, 645 00:21:11.840 --> 00:21:14.440 but you know, from five million to, you know, 20 or 25. 646 00:21:14.440 --> 00:21:16.840 That's usually the next kind of step for most of those guys. 647 00:21:16.840 --> 00:21:18.120 So you mentioned next offer 648 00:21:18.120 --> 00:21:20.360 and also to piggyback of what you said earlier, 649 00:21:20.360 --> 00:21:22.120 one product, one prospect, one channel 650 00:21:22.120 --> 00:21:23.840 to get you to a million, 651 00:21:23.840 --> 00:21:25.680 pretty sure I saw Layla say on Instagram, 652 00:21:25.680 --> 00:21:27.520 to 10 deck, I get you to 10 million. 653 00:21:27.520 --> 00:21:29.160 So with the front end backend, 654 00:21:29.160 --> 00:21:30.280 like the continuity piece, 655 00:21:30.280 --> 00:21:32.640 do you consider the continuity more of an extension 656 00:21:32.640 --> 00:21:35.080 of the front end versus like, it's the next offer? 657 00:21:35.080 --> 00:21:37.280 Like, when should someone be adding continuity? 658 00:21:37.280 --> 00:21:39.120 Because I know like, we have a backend program 659 00:21:39.120 --> 00:21:42.080 and we're obviously sub three million, we're above one, 660 00:21:42.080 --> 00:21:43.840 but like, where does it make sense 661 00:21:43.840 --> 00:21:46.080 and is that actually a different offer? 662 00:21:46.080 --> 00:21:48.960 It depends on, so I would say, I would categorize them. 663 00:21:48.960 --> 00:21:52.560 So six ways of increasing life-tongues profit per customer, right? 664 00:21:53.120 --> 00:21:54.840 So you increase the price, decrease the cost, 665 00:21:54.840 --> 00:21:55.960 get them to buy more times, 666 00:21:55.960 --> 00:21:57.280 upsells, cross sells, downsells, right? 667 00:21:57.280 --> 00:21:58.960 Those are the six ways of doing it. 668 00:21:58.960 --> 00:22:00.040 So if we're thinking about the backend, 669 00:22:00.040 --> 00:22:01.800 is it an upsell or a cross sell or a downsell, 670 00:22:01.800 --> 00:22:03.320 I would say it just depends on what the category is. 671 00:22:03.320 --> 00:22:05.400 So if we're delivering more of the same thing, 672 00:22:05.400 --> 00:22:06.880 then I would consider that a downsell, 673 00:22:06.880 --> 00:22:08.040 because it's like downsell the upsell, 674 00:22:08.040 --> 00:22:09.760 it's like, it's consuming the thing 675 00:22:09.760 --> 00:22:10.720 that's going to feed the machine. 676 00:22:10.720 --> 00:22:12.000 And if you do that adequately, 677 00:22:12.000 --> 00:22:13.120 you really don't have turn 678 00:22:13.120 --> 00:22:16.800 because they always need the thing that feed the machine, right? 679 00:22:16.800 --> 00:22:19.000 The upsells, which is usually where we will try 680 00:22:19.000 --> 00:22:20.680 and build some sort of upsell, 681 00:22:20.680 --> 00:22:22.840 but most times people try and cross sell, 682 00:22:22.840 --> 00:22:24.800 and that is the mistake. 683 00:22:24.800 --> 00:22:26.200 That is what most entrepreneurs jump to, 684 00:22:26.200 --> 00:22:27.320 which is I have a distribution base, 685 00:22:27.320 --> 00:22:28.720 I'll solve them something else. 686 00:22:28.720 --> 00:22:30.760 And usually that's not the time to do it 687 00:22:30.760 --> 00:22:32.320 because they end up having two companies, 688 00:22:32.320 --> 00:22:34.000 and then they're CEO of two companies, 689 00:22:34.000 --> 00:22:35.680 and you can't be CEO of two companies, 690 00:22:35.680 --> 00:22:37.360 because if you look at every Fortune 500, 691 00:22:37.360 --> 00:22:38.800 they're CEO of one company. 692 00:22:38.800 --> 00:22:39.960 The only solution is Elon, 693 00:22:39.960 --> 00:22:41.200 and he's not actually CEO of any of them, 694 00:22:41.200 --> 00:22:42.360 he's the owner and founder. 695 00:22:42.360 --> 00:22:44.520 And so there's really no Fortune 500 company 696 00:22:44.520 --> 00:22:46.720 that is like, yeah, I'm CEO of Home Depot, 697 00:22:46.720 --> 00:22:49.000 and, Derek, you know what I mean? 698 00:22:49.000 --> 00:22:50.920 It's like, that's not, but we do that all the time 699 00:22:50.920 --> 00:22:52.160 as entrepreneurs, because we think for some reason 700 00:22:52.160 --> 00:22:53.560 that we started the company to solve our problems. 701 00:22:53.560 --> 00:22:55.880 When in reality, we just create double the problems 702 00:22:55.880 --> 00:22:58.040 that we had, and we still never advance past the point 703 00:22:58.040 --> 00:23:00.720 of our incompetence, which is where I can tell you, 704 00:23:00.720 --> 00:23:03.200 this is one of the themes that I've seen repeated over 705 00:23:03.200 --> 00:23:06.720 and over and over again, so I can drive this one, 706 00:23:06.720 --> 00:23:09.200 which is you will make the amount of money 707 00:23:09.200 --> 00:23:11.160 based on what level of entrepreneur you are. 708 00:23:11.160 --> 00:23:14.720 That's like level of entrepreneur times opportunity size, 709 00:23:14.720 --> 00:23:17.000 that is what the amount of money that you will make, right? 710 00:23:17.080 --> 00:23:19.400 And so most people, entrepreneurs wise, 711 00:23:19.400 --> 00:23:20.760 they'll have a three million dollar business, 712 00:23:20.760 --> 00:23:21.800 and they'll start a second business, 713 00:23:21.800 --> 00:23:23.200 and then they'll have two one and half million 714 00:23:23.200 --> 00:23:26.080 dollar businesses with less profit. 715 00:23:26.080 --> 00:23:28.080 This happens in the brick and mortar world all the time. 716 00:23:28.080 --> 00:23:29.560 They have a whole location, it's really profitable, 717 00:23:29.560 --> 00:23:31.880 they start a second location, then they start a third location, 718 00:23:31.880 --> 00:23:32.720 right? 719 00:23:32.720 --> 00:23:34.240 Well, it happens with some of these generalist service providers 720 00:23:34.240 --> 00:23:35.640 that they add a different service, 721 00:23:35.640 --> 00:23:38.000 but arguably it's a completely different business. 722 00:23:38.000 --> 00:23:39.320 It's a totally different business, exactly. 723 00:23:39.320 --> 00:23:41.360 And so until you can really transition to owner, 724 00:23:41.360 --> 00:23:42.200 whichever one of the things they are, 725 00:23:42.200 --> 00:23:44.640 but the reality is that they just outsource sales, 726 00:23:44.640 --> 00:23:47.360 but they're still CMO, they're still CEO, 727 00:23:47.360 --> 00:23:48.920 they're still C-O-O, right? 728 00:23:48.920 --> 00:23:50.440 They still have four hats on, 729 00:23:50.440 --> 00:23:54.160 and they think that somehow because they are owners, 730 00:23:54.160 --> 00:23:57.600 also that they are owners exclusively, 731 00:23:57.600 --> 00:23:58.960 when that is not the reality. 732 00:23:58.960 --> 00:24:01.600 And so for the companies that we're working with, 733 00:24:01.600 --> 00:24:03.920 like in the beginning, it's like our consolidate. 734 00:24:03.920 --> 00:24:06.600 So we have focus, we drive the one channel, 735 00:24:06.600 --> 00:24:08.760 we maximize what we have there, so we know that, 736 00:24:08.760 --> 00:24:10.760 we can put somebody's in charge of that channel, 737 00:24:10.760 --> 00:24:13.120 then we can take time from the owner 738 00:24:13.120 --> 00:24:15.200 to who's really still chief product officer, 739 00:24:15.200 --> 00:24:17.920 also that have, and really create the next product offer. 740 00:24:17.920 --> 00:24:19.680 And sometimes it takes time, you know what I mean? 741 00:24:19.680 --> 00:24:21.360 Like, I mean, it might take six months, 742 00:24:21.360 --> 00:24:24.320 just to get those two things to happen, you know what I mean? 743 00:24:24.320 --> 00:24:26.520 And that's where when we try and work with entrepreneurs, 744 00:24:26.520 --> 00:24:27.800 we want to have an extended time rise, 745 00:24:27.800 --> 00:24:30.120 which is like a 12-week program is not going to help 746 00:24:30.120 --> 00:24:33.040 someone go from 5 million to 30 million, you know? 747 00:24:33.040 --> 00:24:34.840 Which is why we take equity in the companies 748 00:24:34.840 --> 00:24:35.680 that we're working with, 749 00:24:35.680 --> 00:24:37.200 because we're looking for people who are like, 750 00:24:37.200 --> 00:24:39.280 sometimes you have to take a step back 751 00:24:39.280 --> 00:24:40.880 in order to take three steps forward. 752 00:24:40.880 --> 00:24:42.040 And that's just the truth. 753 00:24:42.040 --> 00:24:44.240 Like, if you're offering six things, 754 00:24:44.240 --> 00:24:45.560 and you have to cut five of them, 755 00:24:45.560 --> 00:24:47.920 because they're not profitable, your revenue will drop. 756 00:24:47.920 --> 00:24:50.320 You'll also have to get rid of teammates that you don't need. 757 00:24:50.320 --> 00:24:52.440 But now the new business may be far more profitable. 758 00:24:52.440 --> 00:24:54.800 I'll give you one example that might just drive this home. 759 00:24:54.800 --> 00:24:58.040 Also, the first company I took off for acquisition is not calm. 760 00:24:58.040 --> 00:25:01.000 Had a $1.6 million, which is small, 761 00:25:01.000 --> 00:25:01.880 but I really like the guy. 762 00:25:01.880 --> 00:25:04.040 $1.6 million brick and mortar business, 763 00:25:04.040 --> 00:25:06.640 and they had a 500,000-year agency. 764 00:25:06.640 --> 00:25:09.320 All right, that was helping this type of brick and mortar business. 765 00:25:09.320 --> 00:25:12.240 And so what I told them to do was I hated the, 766 00:25:12.240 --> 00:25:13.480 hated the model. 767 00:25:13.480 --> 00:25:14.800 So we killed the business. 768 00:25:14.800 --> 00:25:17.000 I killed the 500,000-year business. 769 00:25:17.000 --> 00:25:18.400 It's making him money, right? 770 00:25:18.400 --> 00:25:19.800 We killed it. 771 00:25:19.800 --> 00:25:21.080 And then we started the new model, 772 00:25:21.080 --> 00:25:22.080 which is what we do now, 773 00:25:22.080 --> 00:25:23.840 which is we own all the locations. 774 00:25:23.840 --> 00:25:25.440 And so now we have 10 locations. 775 00:25:25.440 --> 00:25:26.840 We open a new location every month. 776 00:25:26.840 --> 00:25:29.040 And so that business went from what he was doing then 777 00:25:29.040 --> 00:25:31.200 to now 14 months later, it's doing $200,000 a week. 778 00:25:32.880 --> 00:25:33.720 Right? 779 00:25:33.720 --> 00:25:35.800 But for the first 90 days, revenue went down. 780 00:25:36.800 --> 00:25:39.400 But it's like, that's why I'm there, too, to be like, 781 00:25:39.400 --> 00:25:40.200 breathe. 782 00:25:40.200 --> 00:25:41.080 It's OK. 783 00:25:41.080 --> 00:25:42.200 It's fine. 784 00:25:42.200 --> 00:25:43.440 Like you see where we're going. 785 00:25:43.440 --> 00:25:45.040 Like you see how things are getting simpler. 786 00:25:45.040 --> 00:25:47.560 Like you have to get simpler, pare down, focus. 787 00:25:47.560 --> 00:25:49.080 And then we can have the explosive growth, 788 00:25:49.080 --> 00:25:51.200 because it's really easy to do one thing a hundred times. 789 00:25:51.200 --> 00:25:53.720 It's very hard to do 100 things one time, 790 00:25:53.720 --> 00:25:55.840 which is what most people do in their businesses, 791 00:25:55.840 --> 00:25:57.040 especially all the custom guys. 792 00:25:57.040 --> 00:25:58.280 You'll never sell the business. 793 00:25:58.280 --> 00:25:59.440 You'll never scale the business. 794 00:25:59.440 --> 00:26:00.840 It's OK. 795 00:26:00.840 --> 00:26:02.640 The last question before you tell us again, 796 00:26:02.640 --> 00:26:04.280 where we can go for all the free stuff. 797 00:26:04.600 --> 00:26:06.360 And also, I think you should share why you're doing this, 798 00:26:06.360 --> 00:26:07.960 because I think it's really awesome. 799 00:26:07.960 --> 00:26:09.560 So again, this is more of a selfish one. 800 00:26:09.560 --> 00:26:11.440 But like training, coaching, space, 801 00:26:11.440 --> 00:26:12.960 what do you feel like we're all missing 802 00:26:12.960 --> 00:26:15.920 that we need to get right in order to kind of build 803 00:26:15.920 --> 00:26:18.080 something of substance? 804 00:26:18.080 --> 00:26:20.000 Most people haven't done it. 805 00:26:20.000 --> 00:26:21.720 I mean, if we're being super real, 806 00:26:21.720 --> 00:26:22.840 most people haven't done the thing 807 00:26:22.840 --> 00:26:24.080 that they're selling me a hundred down. 808 00:26:24.080 --> 00:26:25.160 I mean, how many business coaches 809 00:26:25.160 --> 00:26:26.200 are talking about scaling a business 810 00:26:26.200 --> 00:26:28.400 that never scale the business before you start? 811 00:26:28.400 --> 00:26:30.360 You know, I mean, like that's the real real. 812 00:26:30.360 --> 00:26:32.040 It's because everyone's so status driven 813 00:26:32.040 --> 00:26:34.840 and everyone wants to appear successful before they actually 814 00:26:34.840 --> 00:26:36.360 are, and wants to fake it till they make it. 815 00:26:36.360 --> 00:26:39.240 But I'll tell you, if you make it, you don't have to fake it. 816 00:26:39.240 --> 00:26:41.200 And so the whole thing with acquisition.com 817 00:26:41.200 --> 00:26:42.400 is Laila and I have probably taken 818 00:26:42.400 --> 00:26:44.520 out 45 million dividends out of the businesses 819 00:26:44.520 --> 00:26:45.920 that are last four or five years. 820 00:26:45.920 --> 00:26:48.600 And the new chapter I feel like is the score card 821 00:26:48.600 --> 00:26:50.840 is changing for me from revenue and profit, 822 00:26:50.840 --> 00:26:52.240 so just kind of like meaning and things 823 00:26:52.240 --> 00:26:53.640 that I drive joy from. 824 00:26:53.640 --> 00:26:55.600 And so I thought, was the most valuable thing 825 00:26:55.600 --> 00:26:57.000 that I can give the marketplace besides money? 826 00:26:57.000 --> 00:26:58.840 Now, we donate a couple million bucks 827 00:26:58.840 --> 00:27:00.960 in the last two years to charities that we find meaning in, 828 00:27:01.000 --> 00:27:02.600 which are usually education based. 829 00:27:02.600 --> 00:27:04.200 But like I believe education is the thing 830 00:27:04.200 --> 00:27:05.200 that's going to set everyone free. 831 00:27:05.200 --> 00:27:07.000 And so I think that most of us, 832 00:27:07.000 --> 00:27:08.600 anybody who wants to like formal college, 833 00:27:08.600 --> 00:27:09.480 was kind of gypped. 834 00:27:09.480 --> 00:27:10.320 I think if you can have, 835 00:27:10.320 --> 00:27:12.240 if you've made the same money after a four-year, 836 00:27:12.240 --> 00:27:13.520 a two-year, imagine a four-year, 837 00:27:13.520 --> 00:27:14.760 two-year, two-year, a thousand-dollar coaching program 838 00:27:14.760 --> 00:27:16.360 that you made the exact same money afterwards. 839 00:27:16.360 --> 00:27:17.200 It's ridiculous. 840 00:27:17.200 --> 00:27:19.320 And no one will understand, which is hilarious to me. 841 00:27:19.320 --> 00:27:21.560 But anyways, so my thought process is, 842 00:27:21.560 --> 00:27:22.840 can I give, and you know, 843 00:27:22.840 --> 00:27:23.680 the people who are teaching business 844 00:27:23.680 --> 00:27:25.800 never had a business like all sorts of stuff, right? 845 00:27:25.800 --> 00:27:27.840 In the college, but the most valuable thing 846 00:27:27.840 --> 00:27:30.240 I can do the marketplace is give all the experiences, 847 00:27:30.240 --> 00:27:32.360 the skills, the traits, and the beliefs 848 00:27:32.360 --> 00:27:34.680 that have shaped where we are now to everyone. 849 00:27:34.680 --> 00:27:35.880 And I know that with media, 850 00:27:35.880 --> 00:27:37.520 I can give that all the way for free at New Cost. 851 00:27:37.520 --> 00:27:39.400 And so the whole idea with Acquisition.com 852 00:27:39.400 --> 00:27:41.600 is just give away more value for free 853 00:27:41.600 --> 00:27:42.960 than other people charge for. 854 00:27:42.960 --> 00:27:45.000 I mean, that's the strategy. 855 00:27:45.000 --> 00:27:49.280 And then hopefully get people from zero to three, 856 00:27:49.280 --> 00:27:51.760 five million on their own with no assistance. 857 00:27:51.760 --> 00:27:52.960 And if you're the type of person 858 00:27:52.960 --> 00:27:53.960 that doesn't need assistance 859 00:27:53.960 --> 00:27:55.920 and was able to use the stuff that we gave, 860 00:27:55.920 --> 00:27:57.720 then you'd be a perfect fit for the type of business 861 00:27:57.720 --> 00:27:59.840 that I want to invest in and then help grow 862 00:27:59.840 --> 00:28:00.680 to the next thing because I know 863 00:28:00.680 --> 00:28:02.120 that you won't need to handle it, right? 864 00:28:02.120 --> 00:28:04.480 And so you know, my works, I know that you work. 865 00:28:04.480 --> 00:28:06.360 And so as a result, we can kind of work 866 00:28:06.360 --> 00:28:07.840 off of shared trust. 867 00:28:07.840 --> 00:28:09.600 And you know, the downside risk for me 868 00:28:09.600 --> 00:28:11.320 is that I just help a lot of people for free, which is- 869 00:28:11.320 --> 00:28:12.320 I love it, man. 870 00:28:12.320 --> 00:28:14.280 Well, we all appreciate it. 871 00:28:14.280 --> 00:28:15.560 I know I appreciate it. 872 00:28:15.560 --> 00:28:16.800 Guys, if you haven't gotten the book, 873 00:28:16.800 --> 00:28:19.320 I'll drop links in the thread below this, 874 00:28:19.320 --> 00:28:21.920 but definitely download the book or all three. 875 00:28:21.920 --> 00:28:24.560 Growth hack, read the book while listening to the audio 876 00:28:24.560 --> 00:28:27.000 book at the same time, learn from Alex himself, 877 00:28:27.000 --> 00:28:29.520 and you'll read the book all that faster. 878 00:28:29.520 --> 00:28:30.360 Thanks again, man. 879 00:28:30.360 --> 00:28:31.600 Really appreciate you. 880 00:28:31.600 --> 00:28:32.440 No, you bet. 881 00:28:32.440 --> 00:28:33.840 And just for everyone, acquisition.com, 882 00:28:33.840 --> 00:28:35.000 you don't have to opt in anything. 883 00:28:35.000 --> 00:28:36.200 So I'm training. 884 00:28:36.200 --> 00:28:37.040 Yes, I'm training. 885 00:28:37.040 --> 00:28:37.880 You don't have to opt in anything. 886 00:28:37.880 --> 00:28:38.840 You can just click there. 887 00:28:38.840 --> 00:28:40.320 And if you see that, there's locked forces 888 00:28:40.320 --> 00:28:41.360 because I just haven't made them yet, 889 00:28:41.360 --> 00:28:42.200 but yeah, you can go there. 890 00:28:42.200 --> 00:28:43.040 You can watch all of them. 891 00:28:43.040 --> 00:28:43.880 There's downloads and everything. 892 00:28:43.880 --> 00:28:44.720 You can just take them. 893 00:28:44.720 --> 00:28:45.560 Awesome, man. 894 00:28:45.560 --> 00:28:46.400 Thanks again. 895 00:28:46.400 --> 00:28:47.240 We appreciate you. 896 00:28:47.240 --> 00:28:48.080 Bet, appreciate you. 897 00:28:48.080 --> 00:28:49.240 All right, bye-bye.