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What's going on everyone? Happy Thursday. I'm just, I've been on a little

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content there, haven't I? My sales director, Dylan, my sister screen was like,

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hey man, you made this podcast on Stuart's, what's the WTF gym talk and it was

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about the six-week challenge and I kind of this question asked me at two

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events and on that podcast and so I wanted to address it straight on and kind

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of give you context for why I'm not worried and then you can either agree or

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disagree with that's up to you. So if you think about like the six-week challenge

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in general, right? So people say like well isn't it very saturated or are like

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more and more people are doing it? What does that mean for the long-term

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ramifications? And so I kind of wanted to like break that down. So if you look

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at the history of like fitness marketing, right? Like LA Fitness was running a

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free month for 35 years, right? And they were using direct male campaigns

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primarily because that was and radio because that's where the media was, this

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where attention was, that's where people were paying attention. And so they

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were able to and they were off to some of the only players in space. They were

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able to do that for a really long time. Now, if you look at the way that those

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media platforms work, you have to do very large media buys for direct male or

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radio over large blanketing areas, which is why most small players couldn't

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play. The other downstream effect of that was that there wasn't a lot of

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testing that was able to happen. And so once they found a play like a direct

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male play that would work, they would only do like an A or a B test and that

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would be it, right? And so what's happened is that with the advent of digital

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marketing, we can split test things at a much faster rate. And so my argument

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would be that the actual offers that we we have now in the creative that we have

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now is far more compelling than what was created 20 years ago. And that's just

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because we have far more ability to acquire information and see response on a

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much smaller budget. And it opened up the marketplace so that smaller players

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could get into it. And they're probably playing a great advertising

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creative people who if they were just funding for themselves could spend

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$10, $20, $30 a day, whereas they weren't going to bet 10 grand or 20 grand

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on a radio box. And so the first thing is just kind of understanding

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where where this has come from is like within like the larger history of

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of like fitness marketing. The second thing is that you have to look at

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a market within the context of what everything that any person is hearing.

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And so if you have Sally Johnson, right? And she's she's trying to lose weight.

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She's 38 years old and you know, makes 60,000 a year, which is like the most

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prototypical, you know, weight loss customer, right? Who dies five times a year.

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She hears stuff constantly, right? She's got P90X. She's got, um,

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she's got weight watchers things that are going on. And then she has gyms all

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around her. And all of the gyms are running different promotions out at the

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same time. So it's a very busy marketplace. No matter what you do, no matter

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what offer it is. And the reality is that most types don't even know like if you go

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on the street and say, Hey, do you know what six-week challenge is? But we're like,

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what are you talking about? Right? And so we, because we hear it all the time,

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and that's our world, assume that everyone knows about everything that we do in

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our business and the God is that that's just not true. Right? Now, if you were to

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separate, there's like, there's so many more pieces to this. But I'm going to

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try and like bring it like super, you know, three main pieces, right?

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You've got your traffic source and then you have your offer and then you

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have your conversion mechanism. Okay? The conversion mechanism is

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arguably the most important. Okay? And that's what we sell at Jamonton.

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That's how our guys make so much money. And it's not because they necessarily

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have a superior offer. Now, the offer is definitely a big piece of it. But it's

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because the mechanism that allows them to buy traffic, which is the third pillar

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here, is superior. Right? And so for me, I have a free case study. That's

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what I give away on the front end for our ad stuff. Right?

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Now, right now, I have already, I have successfully tested that on YouTube.

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I've successfully tested that on AdWords. I've successfully tested on

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Instagram. I've successfully tested that on Facebook. Now,

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I'm going to be coming out with a book in a in the soon future. Right?

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I spent the last 30 days or 300 pages. It's called Jamont Secrets. I think you

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guys would think it. But anyways, it's really good. I'm really excited about it. But

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what am I going to do? I'll probably swap that for the front end. I also have an

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infographic book that I finished. And like, I'll swap that for the front end.

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But the point is, is that the conversion mechanism of how we go appointment

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to a phone call to a sale is, is like, that's tested. We know how to get people to

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schedule. We know how to get people to show. And then ultimately, we get people to buy

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and then get great results and send their friends. Right? And so we know how much

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we can spend to acquire a customer from a scheduling standpoint.

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And then all we need to do is reverse out, okay, what percentage of people who hit

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our scheduling page are going to schedule and show. And then what percentage of people

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are going to opt in for that initial widget. Right? So right now, the case studies has worked

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fine for 18 straight months. And there's really no reason for me to do it besides the fact

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that I'm bored, which is probably something that you shouldn't do. But I'm just breaking my own

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rules because I'm into it sometimes. But to circle this back to the 63 challenge, I ran the

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six week challenge at my gym for six straight years uninterrupted. Six straight years,

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rolling week after week after week after week. Why and how could I do that? Because I could

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outspend everyone. Right? It didn't matter. And it's the same thing here in this gym space is

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that like, I'm competing against people who can't spend as much as I can. Right? And so like,

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people like the guy who will knock us will say whatever they say. And like, it doesn't really

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affect me that much because like, I can spend $4,000 in email. I just doesn't matter to me. Right?

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Because like, you let your model do the talking. And if your model is designed properly and you

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provide, you know, exceptional value and service, which hopefully if you're watching this, you do,

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then people will bring their friends and bring more friends, etc. Right? I'm not going to

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get out of that red hole. So to get back to like the the six week challenge and how long will it

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keep working? The offer of the six week challenge fundamentally is something that most people,

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like as of right now, it's the offer that converts best. It's converted the best over the last

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six years. There may be another offer that we will find that does better. For the time being,

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it's the best one. Period. It's the one that gets the most clicks. And it also works with the

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conversion mechanism that we have on the back end. Ryan Carous, at one point, was spending like

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$35 a lead and still getting 15 to one back. Who can compete with them on that? He could spend

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up to $250 a lead to break even on the acquisition. And he still has the EFT and the back end.

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So for everyone who's run LBOs their whole life, that's what an LBO is supposed to do is you break,

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I mean, they don't, but like they're supposed to usually lose money on the acquisition and they make

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their money back on the back end, right? No. If you can still like all this is, it's just a way better

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way. And this is why it's the new way of doing business, right? Like business landscapes devolve.

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Like better players and better ways of doing business come up. This is a better way of doing

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business. That is why Uber took over taxi companies. That's why Netflix beat out blockbuster.

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It was a better model, right? This is a better model of acquiring customers. The fact that it's a

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six-week challenge is a relevant, it's just the widget. It's just the front end. It's the thing

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that gets the click. And the beauty of it is that you can always change it. Now, how long will it work?

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Keep coming back to this question. It depends on the on the on the economics of the offer, right?

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And so right now, and it depends on the gyms because I've got some guys and that's why conversion

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of how many percentage of leads you convert is such an important number to me. Why it's arguably the

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most important number for me that I look at if I'm looking at the health of the gym in their selling

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system, right? Now, if I have two gyms, let's use Ryan Karris as an example. So he's probably the

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number one grossing gym we have. I think he'll do one like one point like eight million this year

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or something like that. His conversion mechanism is amazing, right? He's rock sawdaz guys are working

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the leads like they come in, they close them like crazy, they get amazing amounts of referrals from

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everyone, right? And so for him, same offer, okay? He can spend up to $250 a lead, a lead, okay?

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And then you've got let's say someone else, okay? Who has the same exact gym launch system, okay?

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So I'm like just talking about my own system here, right? And they're running a six week challenge

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and they let's say they convert five percent of the leads, which is really kind of poor.

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Now, if you're converting five percent of your leads onto a $600 offer, right? Then that means

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that you can spend up to $30, make sure I'm doing my math right, times 20, yes, divided by 20, yeah,

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$30. So you can spend $30 a lead. That's still not bad, you know what I mean? And you're breaking

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even, right? And most people are getting leads from much less than that. So that person's still fine.

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How long can Ryan keep playing in that marketplace for a lot longer than the person who can only

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spend $30 a lead? So does that person need a new offer or did they need to get better at converting

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leads? They need to get better at converting leads. They don't need to change anything in their

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machine. They seem to be better at it, right? And

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big guys, love that you're listening to the podcast. If you ever want to have the video version

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of this, which usually has more facts, more visuals, more graphs, you know, drawn out stuff,

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sometimes it can help hit the brain centers in different ways. You can check on my YouTube channel,

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it's absolutely free to check that out if that's what you are into. And if not, keep enjoying the show.

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The, how good you are at converting your leads will dictate how, how profitable and how long

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you can run a campaign on a given ad platform. Now that's kind of the last piece, which is the

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traffic. So if someone says, how long will the six week challenge keep working, I would then

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ask the natural question. And that's why I had to build up to this point, which is on what

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a platform, because like, how long will the six week challenge work on direct mail? Probably

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does work on direct mail. It's just more profitable online, right? For right now. How long, like,

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right now it works on Facebook, it works on Instagram, it works on Snapchat, it works on YouTube,

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like, it works on all of these things. And Jim words, I think he goes really excited about the

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thing that's tomorrow. So look forward to that because we're releasing a ton of new leads and stuff.

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I think you will dig it. But that's the size of the point. How long will it work on that platform?

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It will work as long as until the, the, the, the CPM, so the cost per eyeball gets to a point

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where you're spending $250 per lead for Ryan, right? And then for somebody who's doing the 5%,

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it will work for that person until they get to. So they're doing, so the, let's say, okay,

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I'm going to break down numbers for you. So CPMs is cost per thousand impressions, right? So

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typically most, like, if you were to look at CPMs of Facebook six years ago, CPMs or Facebook were

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like six bucks, okay, for a thousand eyeballs. And then you can even make the argument that they

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were even more responsive eyeballs because there weren't as many ads, not as many ads were being bought

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by businesses because it was a new platform. And so you had more eyeballs that were more responsive

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news cheaper. It's like the wild, wild, right? You just get, I was getting penny clicks. It was the

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best. And there was no rules. I had like hot chicks that were shirtless. It was nuts. Anyways, so

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it evolves, right? And so from then until now, the cost of ads has literally five X, five X.

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Now, did that affect my promotions at all? No, because my budget, my, my ceiling was $200,

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right? It didn't matter, right? Because I have so much room to go. Now, um, you have your thousand

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eyeballs. Let's just use $20 because it's an easy no, but to work with. So right now that's,

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that's kind of like a slightly, like a slightly cheaper, like right now, say average gyms are getting

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like $25 to $30, but I'm going to use 20 just because it's easier for math. Okay? So let's see,

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you're doing, you know, at least 25, so people don't get bothered. So $25 a CPM, okay? So $25

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for a thousand eyeballs. Now, from those thousand, thousand eyeballs, let's say you get three leads,

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okay? That means that you're spending $8 and 33 cents a week, okay? So you have $8 and 33 cents

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lead and that's what the $25 you can. So if in the next five years Facebook does again and five

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X's to up to $125 a CPM, which that's like television cost, then still and we're getting three people per,

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right? We're still getting leads for $45 a lead and Ryan can still keep going to $250. He's still

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getting five to one on his acquisition. So how long do you think a woman will work? I don't know,

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it just depends on the traffic platform, but the thing is, is at that point, there will be another

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traffic platform. There will always be another traffic platform because people's attention is always

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somewhere. And eventually the ad platforms get more developed, they get more regulated, they get

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more whatever. And then the biggest players come in Coca-Cola, Budweiser, all these guys and then

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they start dropping their ridiculous budgets and then they just raise the water for everyone.

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And then at that point, the savvy marketers, right, go to another new platform and do the same thing

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again, right? And the thing is, is that in the very beginning of a new platform, people usually

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will push traffic to like static sales pages. They'll push them to $21 or 21-day promotions and

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that's why the very beginning LBS stuff works, right? It's because it took zero effort and they could

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literally, they could buy penny clicks. If you have a penny click, even if you're converting it,

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10% on your page or 5% on your page, you're still getting like 21 back. It doesn't matter, right?

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And so guys will do that, just push ass loads of traffic towards the page because they can

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afford to do it. But then very quickly, real players start entering and then you can't buy

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traffic for that cheap anymore, right? And then those guys go to the next one, right? But then,

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so like you want to be the business who can't spend the most. Does this six-week challenge the

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actual promotion matter at all? No, it's the conversion mechanism. You could do it for 12-week,

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that's why we have a 12-week transformation that's $3,000. What do you think we can spend there

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to a buyer customer? A lot. How many platforms do you think it works on? A ton. Because traffic

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is just a store. It's a commodity. You go to the traffic store and you pay them for traffic and

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then they give you traffic, right? What you do with that traffic and how much you can spend for it

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is going to dictate how long you're going to be able to use the traffic platform and how long

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an offer or promotion will work for you, right? And so to bring this all the way home, I'll try

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to do my best. The marketplace is much, much bigger than you think it is. If there's, let's say,

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five, you're like, there's five gyms running a six-week challenge. Cool. There's 500 in a million

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person city. It doesn't matter. Like, even if there's 10 of you or 20 of you or 50 of you,

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it still wouldn't matter, right? Because the thing is, in the reality is that it'll never be past that

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because a lot of those gym owners don't even know how to market. They're not even aware enough. They're

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not even in little Facebook groups with other gym owners. They're not trying to learn, like,

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they're doing their thing, right? And they're not going to learn promotions. They're still

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giving away free weeks. That's the only game they know how to play, right? But y'all are smarter,

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right? And you know how to play a better game, which will ultimately, like those guys will eventually

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go out of business or they'll continue to struggle for years and years and years. But if you don't

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have to play that way, then you'll win because you understand how the game is played. Okay? So,

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you have your traffic platforms, but you have your offers, which change? Like, these change

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every five years or so, right? Three to five, it'll change. We probably have, and this is from a

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Gary V. Private, private session that he gave. He said that Facebook has about four to five more

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years of golden days. And then at that point, it's going to get too expensive because that all the

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big brands still, like the big brands still have not certainly done, like you don't see Budweiser ads,

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not a lot of them on Facebook, right? You will, once they can convince that digital marketing

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works someday, right? They'll do that. But that's okay because we're going to have like virtual

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reality marketing and like all sorts of other stuff that's going to open up and we'll be on

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Snapchat, still, or Instagram or whatever, right? We're going to be there because we're always

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going to be on the front because you're a savvy business owner. And so if you have this hope that

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like, well, I wish I could just run ads on one platform forever, right? Well, then just get over

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that hope because like you need to adapt to survive because that's the game of business. The

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point of business is not to win. The point of business is to keep playing, right? And to continue

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to play is to continue to adapt and continue to learn and continue to figure out what the next

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thing is. And I hope that gets you off because it should because that's the game you're playing,

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right? And so traffic platforms will come and go, offers will take much longer to cycle an app

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because that's like human psychology. I mean, this one's been going for

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six years and it's still crushing it. So like, I don't know, I still think that

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the reason that it wasn't out earlier is just because there wasn't enough testing that was in

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place from the earlier players. And now we have much better players. We continue to test stuff.

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We spend about 30,000, 40,000 a month testing new things all the time. Still don't have anything

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now. It pulls that. So you should feel somewhat safe in that. And the thing is is things don't

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happen immediately. Things happen over the span of year, like multiple like quarters slash years

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in order for like actual big changes to occur, right? Which means it's not going to like die tomorrow.

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Usually if someone has a campaign that dies, it's because they're creative sucks.

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It's or it's tired or it's old. Next just normal marketing. You got to make new shit. Excuse me.

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I mean, new stuff. So, um, I hope that puts to rest some of the like, well, like six-week challenges

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or saturating might work like the only reason that you see all those ads is because they're working.

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The only reason people keep running it is because they can keep affording the traffic.

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So maybe if you see lots of people doing it, it's because they're making money.

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A thought, right? And so if you're like, well, I'm too prideful to try this because someone

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else is doing it. Well, then it's like, okay, I'm too prideful to like, adjust to the fact that

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consumers don't go to stores anymore and start using Netflix. Okay, well, if you want to just not

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adjust at the time, that's fine. You know what I mean? Like, there's a place for that.

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But you just won't grow. Okay. You know what I mean? And I'm not trying to say that harshly.

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It's just like business changes. And so like, you can market whatever you want to market. It's just

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going to have to have a superior conversion mechanism or be able to afford you a higher level of

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traffic than the people and the players who are using this one. And I can tell you that the people

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who are using this promotion cannot spend you right now if you're not using it. And so it's either

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like, you can level up and you can change the way you're playing the game. Well, you can get or

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you can be a taxi cab. You know what I mean? Well, Uber comes and takes over. Everyone's using

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Uber. That's not fair. Okay. Like, whatever. So anyways, guys, I hope if you have a good Thursday

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for anyone who's like, not sure of like, and even for my gym owners, like, if you guys aren't sure

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about it, like, well, you guys are all sure. That's why you're still doing it. Like, you're fine.

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We're good. And the beauty is that even when some, even if a meteor hits, right, even if a meteor

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hits an all of a sudden, all women change their mind and are like, I don't want to do a six-week

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challenge anymore. Cool. They're going to do something else and we'll figure it out. And it won't

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take long because someone will always be experimenting with stuff, right? And then you'll figure it out

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and then you'll start running that promotion. As long as you have a client-finished acquisition

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mechanism that allows you to afford traffic, you'll be good to go. The entire human, like,

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unless, basically, until men stop looking at women for how good they look, women are going to continue

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to want to lose weight, period. Like, until we change how evolution works, right? Until we change how,

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like, how men are attracted to women, women are going to be incentivized to lose weight and look

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better. And until women start not looking to men for security, like, there will be more, like,

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guys will start trying to make money, right? Like, I'm saying general biases. I'm not saying

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women don't want to make money. I'm not saying guys don't want to be in shape. But I'm saying

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overall, right? Society. As, like, status is still given to men for the most part for how much

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they can provide. Not for non-champion. That's how you see these gorgeous supermodels with really

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rich older guys. Like, why? Why is that the case? Because that's where the status is. Like, he

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gets status by being with this young cute thing. And she gets status by being with a, by having

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wrangle the tiger, right? I'm just being real with you. And so until that changes, these desires

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are going to always be there. And at the end of the day, if you were a gym and you could give

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service away, you're going to be giving service away in one way or another. There's no, like,

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like, big new thing you're going to either give a week, two weeks, three weeks, four weeks, five

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weeks, six weeks, 12 weeks, whatever. That's going to be your promotion is, would you like to have

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some and try and see if you like it? Now, ideally, you want them to try it and pay you to try it

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so that they're more invested and they get better results from them. They get a better experience

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and are more likely to stay, right? The new way of doing business. But that's what it is. And so,

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like, maybe 42-day challenge works better later or something. But I don't really think that's

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the reality. The only way that this will actually change is that the, like, we figured out a new

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hook on the back end that tops us from, you know, a $600 sale in the first visit to a $1,200 sale

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in the first visit. Maybe when we do that, something will change. But like, for this point,

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as long as you can afford the traffic that you can, as long as women are going to want to keep

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losing weight and keep dieting five times a year, we're good. So, I hope that makes sense for everybody

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or anybody who's worried, like, how long is this going to work? It's going to work for a while.

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And I would need to know the reason for why it's not going to work. And that's just my take.

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That's Alex's scoop. That's my perspective on it. I hope you found that valuable.

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Drop any questions you have. I'll ping back because I love this stuff. Maybe you can see that.

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Like, I get all flustered. I love it. So, anyways, love you all. Hope you have an amazing day.

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Happy Thursday. And I will catch you guys in my gym lords. I'll see you tomorrow on a very, very cool.

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All right. All right.