WEBVTT 1 00:00:00.000 --> 00:00:05.840 Today, I've got a special episode for you guys on our $100 million leads podcast collab 2 00:00:05.840 --> 00:00:07.840 between myself and myself. 3 00:00:07.840 --> 00:00:11.920 This is the high leverage portion of the book, the first four of the core four of the book 4 00:00:11.920 --> 00:00:14.720 are about how one person can advertise to let other people know about their stuff. 5 00:00:14.720 --> 00:00:17.760 Today is how we get other people to advertise on our behalf. 6 00:00:17.760 --> 00:00:21.080 Many of you heard about the book from someone else, and this is going to be key because 7 00:00:21.080 --> 00:00:23.680 today we're talking about referrals, all right? 8 00:00:23.680 --> 00:00:27.560 And so the only way that other people find out about stuff and of way that is viral is 9 00:00:27.560 --> 00:00:29.800 other people like letting them know about it for you. 10 00:00:29.800 --> 00:00:33.720 And so if this stuff has proven valuable for you and you've already gone through two, 11 00:00:33.720 --> 00:00:38.000 three, four, five episodes of this and you've not chosen to share it shame on you, all right? 12 00:00:38.000 --> 00:00:40.360 Because if you've gotten this far, it means you've gotten some value from this, which 13 00:00:40.360 --> 00:00:42.800 means that someone else would get value too, all right? 14 00:00:42.800 --> 00:00:45.480 So the very least if you can leave a review so that someone else can see it because if 15 00:00:45.480 --> 00:00:48.640 you have no friends or entrepreneurs, then leave a review for someone you don't know. 16 00:00:48.640 --> 00:00:50.560 And if you do know someone, send it to them. 17 00:00:50.560 --> 00:00:52.520 And if you're awesome, do both. 18 00:00:52.520 --> 00:00:53.360 Enjoy the rest of the content. 19 00:00:57.560 --> 00:01:00.320 Section four, get lead getters. 20 00:01:00.320 --> 00:01:02.720 Get people who get you more leads. 21 00:01:02.720 --> 00:01:06.640 Give me a lever long enough and a full-crumb on which to place it and I shall move the world, 22 00:01:06.640 --> 00:01:09.120 our comedies. 23 00:01:09.120 --> 00:01:12.920 Building a $100 million lead machine is all about leverage. 24 00:01:12.920 --> 00:01:15.800 An old lady can lift a semi-truck with a long enough lever. 25 00:01:15.800 --> 00:01:18.200 The strongest man in the world without one can't. 26 00:01:18.200 --> 00:01:21.480 The length of the lever determines how much someone can lift. 27 00:01:21.480 --> 00:01:22.680 This is leverage. 28 00:01:22.680 --> 00:01:25.080 We can use the principle of leverage in advertising. 29 00:01:25.080 --> 00:01:27.280 Let me explain. 30 00:01:27.320 --> 00:01:30.320 Someone with internet can send a message to millions of people at once. 31 00:01:30.320 --> 00:01:32.640 Someone writing postcards by hand can't. 32 00:01:32.640 --> 00:01:36.040 The internet allows us to reach more people for the same time spent. 33 00:01:36.040 --> 00:01:38.040 So it's higher leverage. 34 00:01:38.040 --> 00:01:41.600 That means leverage boils down to how much we get for the time we spend getting it. 35 00:01:41.600 --> 00:01:44.320 So we want to use higher leverage activities to get what we want. 36 00:01:44.320 --> 00:01:48.400 More stuff we want, less time getting it, good, and we want leads. 37 00:01:48.400 --> 00:01:49.400 Lots of leads. 38 00:01:49.400 --> 00:01:52.360 Pro tip, don't mistake leverage for speed. 39 00:01:52.360 --> 00:01:54.240 One person can only move so fast. 40 00:01:54.240 --> 00:01:57.880 A person a thousand times ahead of you isn't moving a thousand times faster. 41 00:01:57.880 --> 00:01:58.640 They can't. 42 00:01:58.640 --> 00:02:00.160 They're doing different stuff. 43 00:02:00.160 --> 00:02:04.600 So the future that feels so far away with leverage is closer than you think. 44 00:02:04.600 --> 00:02:06.600 Lead getters give you leverage. 45 00:02:06.600 --> 00:02:09.000 Only two people can let strangers know about the stuff you sell. 46 00:02:09.000 --> 00:02:13.120 You and other people, and there are more of them than you. 47 00:02:13.120 --> 00:02:15.520 People can find out about the stuff we sell from two sources. 48 00:02:15.520 --> 00:02:20.040 We can let them know using the core four or other people can let them know using the core four. 49 00:02:20.040 --> 00:02:21.960 I call these other people lead getters. 50 00:02:21.960 --> 00:02:23.880 When other people do it for us, we save time. 51 00:02:23.920 --> 00:02:27.440 That means we get more engaged leads for less work, leverage baby. 52 00:02:27.440 --> 00:02:29.480 Imagine four scenarios. 53 00:02:29.480 --> 00:02:32.040 Scenario one, you are the lead getter. 54 00:02:32.040 --> 00:02:34.680 You do the core four all day every day by yourself. 55 00:02:34.680 --> 00:02:36.520 You get enough leads to pay bills. 56 00:02:36.520 --> 00:02:40.960 Work, high leads, low, leverage, low. 57 00:02:40.960 --> 00:02:43.960 Scenario two, you get a lead getter. 58 00:02:43.960 --> 00:02:46.280 You get a lead getter to do the core four on your behalf. 59 00:02:46.280 --> 00:02:49.400 Now the lead getter brings enough leads to pay the bills without you advertising. 60 00:02:49.400 --> 00:02:52.240 You work less than scenario one and get the same number of leads. 61 00:02:52.280 --> 00:02:55.080 Work, low leads, low, leverage, high. 62 00:02:57.080 --> 00:03:00.000 Scenario three, you get lots of lead getters. 63 00:03:00.000 --> 00:03:02.520 You spend all your time getting other lead getters. 64 00:03:02.520 --> 00:03:04.520 Your leads go up every time you get another one. 65 00:03:04.520 --> 00:03:08.400 You work all day every day, but you get way more leads than you did when it was just you. 66 00:03:08.400 --> 00:03:11.480 You work more than scenario two, but get way more leads. 67 00:03:11.480 --> 00:03:14.920 Work, high leads, high, leverage, higher. 68 00:03:14.920 --> 00:03:18.760 Scenario four, you get a lead getter who gets lead getters. 69 00:03:18.800 --> 00:03:22.360 You recruit somebody who recruits other people to advertise on your behalf. 70 00:03:22.360 --> 00:03:24.240 They get more lead getters every month. 71 00:03:24.240 --> 00:03:27.040 You only had to work to get the first lead getter once. 72 00:03:27.040 --> 00:03:29.640 But his leads continue climbing without you working. 73 00:03:29.640 --> 00:03:33.480 You work less than scenario three and you get more leads each and every month. 74 00:03:33.480 --> 00:03:37.120 Work, low, leads, high, leverage, highest. 75 00:03:37.120 --> 00:03:40.320 Now you've got the makings of a $100 million leads machine. 76 00:03:40.320 --> 00:03:42.400 Outline of the lead getter section. 77 00:03:42.400 --> 00:03:45.760 The lead getters aren't part of the core four because they're not things you do. 78 00:03:45.760 --> 00:03:50.360 You don't do affiliates or do customer referrals or do agencies or do employees, but you have 79 00:03:50.360 --> 00:03:52.200 to do the core four to get them. 80 00:03:52.200 --> 00:03:57.000 They come from warm reach outs, cold reach outs, posting content and running paid ads. 81 00:03:57.000 --> 00:03:59.720 And once you get them, they do it for you. 82 00:03:59.720 --> 00:04:03.640 So the core four stacks one time to get them and a second time for when lead getters get 83 00:04:03.640 --> 00:04:06.640 engaged leads on your behalf, but it doesn't have to end there. 84 00:04:06.640 --> 00:04:07.920 In fact, it shouldn't. 85 00:04:07.920 --> 00:04:09.240 The process repeats. 86 00:04:09.240 --> 00:04:11.080 Lead getters can go get lead getters. 87 00:04:11.080 --> 00:04:13.400 So we do something once then lead getters can do it forever. 88 00:04:13.400 --> 00:04:15.800 But wait, I thought this book was about getting leads. 89 00:04:15.800 --> 00:04:18.800 So am I trying to get leads or do I want lead getters answer? 90 00:04:18.800 --> 00:04:22.600 Yes, lead getters start out as leads then get interested in the stuff you sell and 91 00:04:22.600 --> 00:04:24.640 become engaged leads like anyone else. 92 00:04:24.640 --> 00:04:28.400 The difference is they get other people interested in the stuff you sell to and ideally every 93 00:04:28.400 --> 00:04:32.320 lead becomes a lead getter following chapters explain in detail how to get other people 94 00:04:32.320 --> 00:04:33.720 to advertise for you. 95 00:04:33.720 --> 00:04:36.960 And if you want to scale to a hundred million plus, you have to understand them number 96 00:04:36.960 --> 00:04:41.960 one, customers, they buy your stuff then tell other people about it to get you leads. 97 00:04:41.960 --> 00:04:47.520 Number two, employees, people in your business that get you leads, three agencies, businesses 98 00:04:47.520 --> 00:04:51.840 with services that get you leads, four affiliates, businesses who tell their audiences about your 99 00:04:51.840 --> 00:04:56.040 stuff to get you leads, all four lead getters let other people know about your stuff. 100 00:04:56.040 --> 00:05:00.560 In other words, all four are higher leverage than doing it on your own. 101 00:05:00.560 --> 00:05:03.640 Once you understand the four lead getters, you can build a lead getting machine for every 102 00:05:03.640 --> 00:05:05.400 company you start for the rest of your life. 103 00:05:05.400 --> 00:05:09.120 I'll break down how I use all four lead getters, how each is different, how to work with 104 00:05:09.120 --> 00:05:13.280 them, when to use them best practices and how to measure progress along the way. 105 00:05:13.280 --> 00:05:15.840 At the end of the section, you'll understand how to get other people to bring you more 106 00:05:15.840 --> 00:05:17.600 leads than you can possibly imagine. 107 00:05:17.600 --> 00:05:20.320 And since we already used the core four to get customers, let's start with something 108 00:05:20.320 --> 00:05:24.320 we can do right now, get those customers to refer more customers. 109 00:05:24.320 --> 00:05:27.480 Free gift, advanced bonus, get people to do it for you. 110 00:05:27.480 --> 00:05:29.400 That may have been one of my favorite chapters in the book. 111 00:05:29.400 --> 00:05:33.040 It took me so long to figure out how to recombine everything into a simple model. 112 00:05:33.040 --> 00:05:36.240 If you want even more training on getting other people to get you leads and how it applies 113 00:05:36.240 --> 00:05:39.440 to scaling, go to acquisition.com for slash training, for slash leads. 114 00:05:39.440 --> 00:05:45.440 As always, you can screen the QR code below if you hate typing. 115 00:05:45.440 --> 00:05:47.720 Customer referrals, word of mouth. 116 00:05:47.720 --> 00:05:53.240 Best source of new work is the work on your desk, Charlie Munger, October 2019. 117 00:05:53.240 --> 00:05:56.520 Laila and I sat together on her parents' living room couch, the one she watched movies 118 00:05:56.520 --> 00:06:01.240 on as a kid, the faded edges of the coffee table begged us to kick our feet up. 119 00:06:01.240 --> 00:06:04.920 We bound slat tops on our thighs, extension cords snaked around the couch to the outlets 120 00:06:04.920 --> 00:06:05.920 down the hall. 121 00:06:06.000 --> 00:06:07.960 Her stepmother clanged in the kitchen. 122 00:06:07.960 --> 00:06:11.160 This was not a work environment, but we made do. 123 00:06:11.160 --> 00:06:14.200 Two years earlier, I lost everything in matter parents on the same weekend. 124 00:06:14.200 --> 00:06:15.920 Hey, Dad, I'm at this guy on the internet. 125 00:06:15.920 --> 00:06:17.240 He lost everything and has no money. 126 00:06:17.240 --> 00:06:20.920 But don't worry, I quit my job and moved in with him to help him on his next big business 127 00:06:20.920 --> 00:06:21.920 idea. 128 00:06:21.920 --> 00:06:23.680 By the way, can we crash here for a while? 129 00:06:23.680 --> 00:06:25.680 Great first impression, Alex. 130 00:06:25.680 --> 00:06:27.000 But a lot of changes since then. 131 00:06:27.000 --> 00:06:28.200 We were multimillionaires now. 132 00:06:28.200 --> 00:06:31.600 We made enough to buy her childhood home in cash every week. 133 00:06:31.600 --> 00:06:33.400 Laila reviewed reports from our department heads. 134 00:06:33.400 --> 00:06:35.240 Oh yeah, we had executives now too. 135 00:06:35.480 --> 00:06:38.200 Hey, sales numbers looked a little soft this week, she said. 136 00:06:38.200 --> 00:06:39.200 Really? 137 00:06:39.200 --> 00:06:40.360 How many did we close? 138 00:06:40.360 --> 00:06:42.480 15, and sales started dipping last week too. 139 00:06:42.480 --> 00:06:44.160 Is there anything different on your head? 140 00:06:44.160 --> 00:06:45.360 I don't know, let me check. 141 00:06:45.360 --> 00:06:47.080 I logged into Facebook's advertising portal. 142 00:06:47.080 --> 00:06:48.960 Red rejection notifications filled the screen. 143 00:06:48.960 --> 00:06:50.800 Well, that'll do it, I said. 144 00:06:50.800 --> 00:06:52.280 What? What happened? 145 00:06:52.280 --> 00:06:53.760 All the ads got shut off. 146 00:06:53.760 --> 00:06:55.520 Well, that's a problem. 147 00:06:55.520 --> 00:06:57.560 When do you think you can get them back up? 148 00:06:57.560 --> 00:07:00.280 It'll take a day or two to get a new campaign started. 149 00:07:01.240 --> 00:07:02.760 I squinted the screen. 150 00:07:02.760 --> 00:07:05.160 Something even more alarming jumped at me. 151 00:07:05.160 --> 00:07:07.600 Facebook rejected the ads two weeks ago. 152 00:07:07.600 --> 00:07:09.440 I acted like nothing was wrong. 153 00:07:09.440 --> 00:07:10.960 So we closed 15 this week, 154 00:07:10.960 --> 00:07:13.160 and how many of the week before I asked? 155 00:07:13.160 --> 00:07:14.240 21. 156 00:07:14.240 --> 00:07:16.960 Well, I've got good news and I've got bad news. 157 00:07:16.960 --> 00:07:18.880 Okay, she said. 158 00:07:18.880 --> 00:07:21.360 The bad news is the ads got shut off two weeks ago. 159 00:07:21.360 --> 00:07:23.920 So that explains the good news is our product is so good. 160 00:07:23.920 --> 00:07:26.640 We're still doing 500,000 a week from Word of mouth alone. 161 00:07:26.640 --> 00:07:28.160 You ignored the ads for two weeks? 162 00:07:28.160 --> 00:07:30.960 She had, oh no, you didn't, written all over her face. 163 00:07:30.960 --> 00:07:32.480 I shrugged with a sheepish grin. 164 00:07:32.480 --> 00:07:33.800 Still love me, right? 165 00:07:33.800 --> 00:07:36.920 We busted out laughing at the absurdity of it all. 166 00:07:36.920 --> 00:07:38.360 Those two years were insane. 167 00:07:38.360 --> 00:07:40.560 The amount of money we were making didn't make sense. 168 00:07:40.560 --> 00:07:43.440 We didn't comprehend how much it was until years later. 169 00:07:43.440 --> 00:07:46.840 We were just grateful to be doing it together, flaws and all. 170 00:07:46.840 --> 00:07:48.920 And this accidental stretch without running paid ads 171 00:07:48.920 --> 00:07:50.280 made something very clear. 172 00:07:50.280 --> 00:07:54.120 Our customers were telling their friends a few months later. 173 00:07:55.320 --> 00:07:56.720 I stood on stage and looked over 174 00:07:56.720 --> 00:07:58.480 the 700 plus gym owner audience. 175 00:07:58.480 --> 00:08:00.880 Everyone paid $42,000 to be there. 176 00:08:00.880 --> 00:08:04.080 All wore black gym floor t-shirts and stick-on moustaches. 177 00:08:04.080 --> 00:08:05.680 It was nuts. 178 00:08:05.680 --> 00:08:07.640 I was mid-presentation explaining how excellent service 179 00:08:07.640 --> 00:08:09.360 generates leads through road of mouth. 180 00:08:09.360 --> 00:08:11.920 All the while, I obsessed over whether the money we made 181 00:08:11.920 --> 00:08:14.600 during the two weeks without running paid ads was a fluke. 182 00:08:14.600 --> 00:08:16.560 Feeling confident, I paused the presentation. 183 00:08:16.560 --> 00:08:17.960 Time to find out. 184 00:08:17.960 --> 00:08:20.400 All right, just to show you how important this is, 185 00:08:20.400 --> 00:08:22.120 who here learned about gym launch 186 00:08:22.120 --> 00:08:23.120 from another gym owner? 187 00:08:23.120 --> 00:08:24.320 Raise your hand. 188 00:08:24.320 --> 00:08:27.080 As soon as the words left my lips, I felt instant regret. 189 00:08:27.080 --> 00:08:28.560 What if no one raised their hand? 190 00:08:28.560 --> 00:08:29.880 What if our growth was all forced? 191 00:08:29.880 --> 00:08:31.040 Such an idiot. 192 00:08:31.040 --> 00:08:33.560 I looked around the room with my arm raised like a monkey. 193 00:08:33.560 --> 00:08:34.680 The room stood still. 194 00:08:34.680 --> 00:08:35.600 Oh no. 195 00:08:35.600 --> 00:08:37.600 Then a few gym owners raised their hands. 196 00:08:37.600 --> 00:08:39.640 That doesn't look great, but it could be worse. 197 00:08:39.640 --> 00:08:41.120 Then more, thank God. 198 00:08:41.120 --> 00:08:43.400 Then more, then a wave of hands. 199 00:08:43.400 --> 00:08:44.640 Holy cow. 200 00:08:44.640 --> 00:08:46.200 People looked at their sides and behind them. 201 00:08:46.200 --> 00:08:48.080 It was almost the entire room. 202 00:08:48.080 --> 00:08:49.680 I let the moments sink in for all of us. 203 00:08:49.680 --> 00:08:50.920 I'll never forget it. 204 00:08:50.920 --> 00:08:53.720 I knew we had good word of mouth, but not this good. 205 00:08:53.720 --> 00:08:55.960 That, I said, is the power of word of mouth. 206 00:08:56.880 --> 00:08:58.440 I know you weren't there when Leyla and I realized 207 00:08:58.480 --> 00:09:01.640 we were making 500,000 plus per week from word of mouth. 208 00:09:01.640 --> 00:09:04.120 I know you weren't there to see $30 million in customers 209 00:09:04.120 --> 00:09:05.640 say someone referred them. 210 00:09:05.640 --> 00:09:07.360 The first time I realized the power of referrals, 211 00:09:07.360 --> 00:09:08.440 it was by accident. 212 00:09:08.440 --> 00:09:10.960 Seeing how much it made me, I studied what had gone right. 213 00:09:10.960 --> 00:09:13.440 I wanted to make sure I could recreate it on purpose. 214 00:09:13.440 --> 00:09:14.960 For me to transfer that ability to you, 215 00:09:14.960 --> 00:09:16.480 I have to transfer the beliefs that created it 216 00:09:16.480 --> 00:09:18.520 and these experiences form those beliefs. 217 00:09:18.520 --> 00:09:20.240 This is why I share them. 218 00:09:20.240 --> 00:09:22.520 People copied our offers, ads, and lead magnets. 219 00:09:22.520 --> 00:09:25.000 They copied our landing pages, emails, and sales scripts. 220 00:09:25.000 --> 00:09:26.520 They copied everything they could, 221 00:09:26.600 --> 00:09:28.640 but they did it with little success. 222 00:09:28.640 --> 00:09:31.040 They think it's about advertising and it is, 223 00:09:31.040 --> 00:09:33.640 but the best advertising is a happy customer. 224 00:09:33.640 --> 00:09:36.840 An amazing product turns every customer into a leadgetter. 225 00:09:36.840 --> 00:09:38.920 The world loses trust by the second. 226 00:09:38.920 --> 00:09:40.840 Every day, more customers do their research. 227 00:09:40.840 --> 00:09:42.240 They arm themselves with information 228 00:09:42.240 --> 00:09:44.320 to make purchasing decisions as well as they should. 229 00:09:44.320 --> 00:09:45.680 So to play at higher levels, 230 00:09:45.680 --> 00:09:48.240 we need our product to not only deliver, but to light. 231 00:09:48.240 --> 00:09:49.680 Customers must get so much value 232 00:09:49.680 --> 00:09:51.920 it compiles them to tell other people about us. 233 00:09:51.920 --> 00:09:55.520 The good news is, once you know how, it's easier than you think. 234 00:09:55.520 --> 00:09:57.560 In this chapter, I explain how to get the lowest cost, 235 00:09:57.560 --> 00:09:59.560 highest profit, and best quality leads out there. 236 00:09:59.560 --> 00:10:01.080 Referrals. 237 00:10:01.080 --> 00:10:02.600 How referrals work? 238 00:10:02.600 --> 00:10:03.800 A referral happens in somebody, 239 00:10:03.800 --> 00:10:05.880 a referral sends an engage lead to your business. 240 00:10:05.880 --> 00:10:07.520 Anyone can refer, but the best referrals 241 00:10:07.520 --> 00:10:08.720 come from your customers. 242 00:10:08.720 --> 00:10:10.480 So this chapter focuses on getting more referrals 243 00:10:10.480 --> 00:10:11.920 from your customers. 244 00:10:11.920 --> 00:10:13.480 How referrals grow your business? 245 00:10:13.480 --> 00:10:15.240 Referrals are important because they grow your business 246 00:10:15.240 --> 00:10:16.080 in two ways. 247 00:10:16.080 --> 00:10:18.760 Number one, they're worth more, higher LTP. 248 00:10:18.760 --> 00:10:21.800 Referrals buy more expensive stuff and buy it more times. 249 00:10:21.800 --> 00:10:25.120 They also tend to pay more in cash upfront, lovely. 250 00:10:25.120 --> 00:10:28.640 Two, they cost less, aka lower cash. 251 00:10:28.640 --> 00:10:30.360 If one customer sends you another customer 252 00:10:30.360 --> 00:10:31.240 because they like yourself, 253 00:10:31.240 --> 00:10:32.560 that new customer costs you nothing. 254 00:10:32.560 --> 00:10:34.600 And free customers are cheaper than customers that cost money. 255 00:10:34.600 --> 00:10:36.960 So free customers equals good. 256 00:10:36.960 --> 00:10:38.520 But what does this stuff really mean? 257 00:10:38.520 --> 00:10:39.520 Check this out. 258 00:10:39.520 --> 00:10:42.640 Imagine you had an LTP to cash ratio of four to one. 259 00:10:42.640 --> 00:10:45.320 That means it costs you 25% of your lifetime gross profit 260 00:10:45.320 --> 00:10:48.160 of one customer to get another, not bad. 261 00:10:48.160 --> 00:10:50.760 But now imagine if every customer brought you two more customers, 262 00:10:50.760 --> 00:10:54.240 you now have an LTP to cash ratio of 12 to one. 263 00:10:54.240 --> 00:10:57.880 You'd use just over 8.3% of your lifetime gross profit 264 00:10:57.880 --> 00:10:58.920 to get a new customer. 265 00:10:58.920 --> 00:11:01.280 So you'd get three customers for the price of one. 266 00:11:01.280 --> 00:11:02.600 Now we're talking. 267 00:11:02.600 --> 00:11:04.320 Hooray, what a deal. 268 00:11:04.320 --> 00:11:06.920 On top of that, referrals are exponential. 269 00:11:06.920 --> 00:11:08.320 Let me explain. 270 00:11:08.320 --> 00:11:10.200 The number of engaged leads you get from the core four 271 00:11:10.200 --> 00:11:11.880 depends on how much you do them. 272 00:11:11.880 --> 00:11:14.040 The inputs to outputs have pretty linear relationships. 273 00:11:14.040 --> 00:11:16.000 If you do 100 reach outs, you get engaged leads. 274 00:11:16.000 --> 00:11:18.000 If you double it, your leads roughly double. 275 00:11:18.000 --> 00:11:19.880 If you spend $100 and ads, you get engaged leads. 276 00:11:19.880 --> 00:11:21.720 If you double it, your leads roughly double. 277 00:11:21.720 --> 00:11:22.960 So no matter how well you advertise, 278 00:11:23.000 --> 00:11:24.520 how much you get depends on how much you do. 279 00:11:24.520 --> 00:11:25.360 And that's great. 280 00:11:25.360 --> 00:11:27.080 But with word of mouth, we can do even better. 281 00:11:27.080 --> 00:11:29.120 With word of mouth, one customer brings two, 282 00:11:29.120 --> 00:11:30.880 two bring four, four bring eight, and so forth. 283 00:11:30.880 --> 00:11:33.440 It's not linear, it's exponential. 284 00:11:33.440 --> 00:11:35.560 Nothing scales like word of mouth. 285 00:11:35.560 --> 00:11:37.720 Wanna know why so few people scale by word of mouth? 286 00:11:37.720 --> 00:11:39.920 They lose customers faster than they get them. 287 00:11:39.920 --> 00:11:42.400 Look at the referral growth equation to see it in action. 288 00:11:42.400 --> 00:11:44.720 Referrals in minus churn customers out. 289 00:11:45.960 --> 00:11:48.960 So the visual is percentage of clients referred monthly, 290 00:11:48.960 --> 00:11:52.720 minus percentage of clients churned monthly equals, 291 00:11:52.720 --> 00:11:54.360 percentage monthly compounding growth. 292 00:11:55.320 --> 00:11:57.400 If referrals are greater than churn, 293 00:11:57.400 --> 00:11:59.440 you grow without any other advertising. 294 00:11:59.440 --> 00:12:00.280 Yay. 295 00:12:00.280 --> 00:12:02.040 If referrals are equal to churn, 296 00:12:02.040 --> 00:12:05.440 you need other advertising to grow your business, meh. 297 00:12:05.440 --> 00:12:07.160 If referrals are less than churn, 298 00:12:07.160 --> 00:12:09.160 you've got to advertise to break even. 299 00:12:09.160 --> 00:12:11.320 Boo, that's most folks. 300 00:12:11.320 --> 00:12:13.400 This gets nutty when you look at percentages. 301 00:12:13.400 --> 00:12:14.800 If the percentage referrals every month 302 00:12:14.800 --> 00:12:16.680 is bigger than the percentage of customers who leave, 303 00:12:16.680 --> 00:12:18.240 your business compounds every month. 304 00:12:18.240 --> 00:12:21.040 You'd have to spend that much more money on ads, 305 00:12:21.040 --> 00:12:22.320 do that many more reach outs, 306 00:12:22.320 --> 00:12:24.960 or post that much more content just to maintain that growth. 307 00:12:24.960 --> 00:12:26.280 You eventually hit a wall, 308 00:12:26.280 --> 00:12:28.400 but with referrals, you can maintain growth 309 00:12:28.400 --> 00:12:29.800 no matter how big you get. 310 00:12:29.800 --> 00:12:31.240 This is how companies like PayPal 311 00:12:31.240 --> 00:12:34.240 and Dropbox exploded into multi-billion dollar businesses. 312 00:12:34.240 --> 00:12:37.120 I'll break down their exact strategies later in the chapter. 313 00:12:37.120 --> 00:12:39.520 On the other hand, small businesses barely script by 314 00:12:39.520 --> 00:12:41.480 because they have about the same customers exiting 315 00:12:41.480 --> 00:12:44.080 as they do entering, a hamster wheel of death. 316 00:12:44.080 --> 00:12:45.400 Here's why. 317 00:12:45.400 --> 00:12:48.400 Two reasons most businesses don't get referrals. 318 00:12:48.400 --> 00:12:50.720 Most businesses don't get referrals for two reasons. 319 00:12:50.720 --> 00:12:53.320 First, their product isn't as good as they think it is. 320 00:12:53.320 --> 00:12:55.160 Second, they don't ask for them. 321 00:12:55.160 --> 00:12:56.720 You're not making as much money as you want, 322 00:12:56.720 --> 00:12:59.000 because you're not as good as you think you are. 323 00:12:59.000 --> 00:13:01.600 Problem number one, the product isn't good enough. 324 00:13:01.600 --> 00:13:02.680 Everyone loves our stuff. 325 00:13:02.680 --> 00:13:03.720 We just need to get the word out. 326 00:13:03.720 --> 00:13:04.920 Says every small business owner 327 00:13:04.920 --> 00:13:07.080 with a product that's not as good as they think it is. 328 00:13:07.080 --> 00:13:08.840 I'm gonna take off my nice guy hat for a second. 329 00:13:08.840 --> 00:13:10.000 If your product were exceptional, 330 00:13:10.000 --> 00:13:11.040 people would already know about it 331 00:13:11.040 --> 00:13:12.880 and you'd have more business than you could handle. 332 00:13:12.880 --> 00:13:14.120 So if you sell direct consumers, 333 00:13:14.120 --> 00:13:15.400 and they're not bringing more customers, 334 00:13:15.400 --> 00:13:17.120 your product is room to improve. 335 00:13:17.120 --> 00:13:18.120 I like to ask myself, 336 00:13:18.120 --> 00:13:19.280 why are my customers too embarrassed 337 00:13:19.280 --> 00:13:21.040 to tell everyone they know about my product? 338 00:13:21.040 --> 00:13:23.120 It may be okay, but it's unremarkable 339 00:13:23.120 --> 00:13:25.080 as in not worthy of remark. 340 00:13:25.080 --> 00:13:27.680 In fact, most of the stuff I pay for kind of sucks. 341 00:13:27.680 --> 00:13:29.440 My pool guy forgets stuff half the time. 342 00:13:29.440 --> 00:13:31.360 My landscapers make a ton of noise at the worst hours. 343 00:13:31.360 --> 00:13:33.720 My cleaners routinely put my clothes in my wife's closet. 344 00:13:33.720 --> 00:13:36.240 I guess that's what I get for extra medium t-shirts. 345 00:13:36.240 --> 00:13:37.440 The list goes on. 346 00:13:37.440 --> 00:13:39.440 Business owners wonder why they don't get referrals. 347 00:13:39.440 --> 00:13:40.600 The answer's right in front of them. 348 00:13:40.600 --> 00:13:41.960 They're just not good enough. 349 00:13:41.960 --> 00:13:43.640 Let me show you how I think about it. 350 00:13:43.640 --> 00:13:45.000 Price is what you charge. 351 00:13:45.000 --> 00:13:46.360 Value is what you get. 352 00:13:46.360 --> 00:13:48.800 The difference between price and value is goodwill. 353 00:13:49.680 --> 00:13:52.200 This means that the price not only communicates value, 354 00:13:52.200 --> 00:13:54.000 but is also how we judge value. 355 00:13:54.000 --> 00:13:56.240 Economics dorks call it customer surplus, 356 00:13:56.240 --> 00:13:57.760 but I'm just gonna call it goodwill. 357 00:13:57.760 --> 00:13:59.120 You want lots of goodwill. 358 00:13:59.120 --> 00:14:00.920 Lots of goodwill creates word of mouth. 359 00:14:00.920 --> 00:14:02.520 Word of mouth means referrals. 360 00:14:02.520 --> 00:14:04.680 There are two ways to build goodwill with your customers. 361 00:14:04.680 --> 00:14:05.920 You can lower your price, 362 00:14:05.920 --> 00:14:07.440 or you can give more value. 363 00:14:07.440 --> 00:14:10.360 After all, if you lower the price of your product enough, 364 00:14:10.360 --> 00:14:11.640 people would line up to get it, 365 00:14:11.640 --> 00:14:12.920 but you'd probably lose money. 366 00:14:12.920 --> 00:14:15.840 So lowering the price is at best a temporary solution. 367 00:14:15.840 --> 00:14:18.320 You can only lower the price so much for so long, 368 00:14:18.320 --> 00:14:20.680 and as marketing legend Rory Sallowen says, 369 00:14:20.680 --> 00:14:22.960 any fool can sell something for less. 370 00:14:22.960 --> 00:14:24.880 So to build goodwill to get referrals, 371 00:14:24.880 --> 00:14:26.720 the question isn't how do we lower our price, 372 00:14:26.720 --> 00:14:28.680 but how do we give more value? 373 00:14:28.680 --> 00:14:31.640 Six ways to get more referrals by giving more value. 374 00:14:31.640 --> 00:14:34.400 There are six ways I get referrals by giving more value, 375 00:14:34.400 --> 00:14:36.720 and it just so happens to map to the parts of an ad, 376 00:14:36.720 --> 00:14:37.920 Nito. 377 00:14:37.920 --> 00:14:40.640 One, call outs, sell better customers. 378 00:14:40.640 --> 00:14:43.520 Two, dream outcome, set better expectations. 379 00:14:43.560 --> 00:14:46.320 Three, increase perceived likelihood achievement. 380 00:14:46.320 --> 00:14:48.440 Get more people better results. 381 00:14:48.440 --> 00:14:51.360 Four, decrease time delay, get faster results. 382 00:14:51.360 --> 00:14:53.480 Five, decrease evidence act price, 383 00:14:53.480 --> 00:14:54.920 keep making your stuff better. 384 00:14:54.920 --> 00:14:58.080 Six, call to action, tell them what to buy next. 385 00:14:58.080 --> 00:14:59.760 So let's start with the first. 386 00:14:59.760 --> 00:15:02.240 Call outs, sell better customers. 387 00:15:02.240 --> 00:15:03.360 We want to sell better customers 388 00:15:03.360 --> 00:15:05.480 because they get the most value from our products. 389 00:15:05.480 --> 00:15:07.640 Customers get the most value, have the most goodwill, 390 00:15:07.640 --> 00:15:09.000 and the customers that have the most goodwill 391 00:15:09.000 --> 00:15:10.320 are most likely to refer. 392 00:15:10.320 --> 00:15:11.720 Yes, it's that simple. 393 00:15:11.720 --> 00:15:13.480 Let me give you a real life example. 394 00:15:13.480 --> 00:15:15.360 We have a portfolio company that did public relations 395 00:15:15.360 --> 00:15:16.680 for small businesses. 396 00:15:16.680 --> 00:15:18.600 They had a lot of sales, but they had a lot of churn, 397 00:15:18.600 --> 00:15:21.080 so they plateaued, they didn't grow for years. 398 00:15:21.080 --> 00:15:21.920 To see what we could do, 399 00:15:21.920 --> 00:15:23.280 we looked at their lowest turning customers 400 00:15:23.280 --> 00:15:24.680 to see if they had anything in common. 401 00:15:24.680 --> 00:15:26.560 They did, they were all in a specific niche 402 00:15:26.560 --> 00:15:28.320 and looking to raise funding from investors. 403 00:15:28.320 --> 00:15:30.680 So the solution looked obvious, get more of them. 404 00:15:30.680 --> 00:15:32.440 But the founder had a big worry. 405 00:15:32.440 --> 00:15:35.240 These customers were only 15% of his business. 406 00:15:35.240 --> 00:15:37.080 If he changed his targeting and it failed, 407 00:15:37.080 --> 00:15:39.200 he would lose 85% of his business. 408 00:15:39.200 --> 00:15:40.840 But the business wasn't growing anyway, 409 00:15:40.840 --> 00:15:42.640 a tough situation for any entrepreneur, 410 00:15:42.640 --> 00:15:44.280 but after reviewing the data many times, 411 00:15:44.280 --> 00:15:46.000 he agreed to change the advertising callouts 412 00:15:46.000 --> 00:15:49.280 to match his narrow, perfect fit customer, the results. 413 00:15:49.280 --> 00:15:51.000 The company broke through its plateau. 414 00:15:51.000 --> 00:15:52.280 They grew for the first time in years, 415 00:15:52.280 --> 00:15:55.000 and now are on track to adding millions per month. 416 00:15:55.000 --> 00:15:56.360 Plus, their cost of advertising, 417 00:15:56.360 --> 00:15:58.880 a huge expense for the stagnating business went down. 418 00:15:58.880 --> 00:16:00.240 They got even cheaper leads 419 00:16:00.240 --> 00:16:02.280 since they could be more specific with their messaging. 420 00:16:02.280 --> 00:16:04.600 But not only that, the cheaper leads got even more value 421 00:16:04.600 --> 00:16:06.120 from the product because it was meant for them, 422 00:16:06.120 --> 00:16:07.680 and those customers because they had more goodwill 423 00:16:07.680 --> 00:16:10.640 towards the business started referring to the clockwork. 424 00:16:10.640 --> 00:16:11.680 Action step. 425 00:16:11.680 --> 00:16:13.040 Increase the quality of the prospect, 426 00:16:13.040 --> 00:16:14.960 and you'll increase the quality of the product. 427 00:16:14.960 --> 00:16:16.680 Figure out what your most successful customers 428 00:16:16.680 --> 00:16:18.640 have in common, use those similarities 429 00:16:18.640 --> 00:16:20.800 to target a new audience that has the greatest chance 430 00:16:20.800 --> 00:16:22.720 of getting the most value who are just like them. 431 00:16:22.720 --> 00:16:25.920 Then sell only people who meet those new criteria. 432 00:16:25.920 --> 00:16:27.840 Set yourself up to build more goodwill. 433 00:16:27.840 --> 00:16:30.440 More goodwill means more referrals. 434 00:16:30.440 --> 00:16:31.840 Two, dream outcome. 435 00:16:31.840 --> 00:16:33.840 Set better expectations. 436 00:16:33.840 --> 00:16:35.480 The fastest, easiest, and cheapest way 437 00:16:35.480 --> 00:16:36.840 to make your product remarkable 438 00:16:36.840 --> 00:16:39.040 is make it better than they expect. 439 00:16:39.040 --> 00:16:40.240 And that's easier than you might think 440 00:16:40.240 --> 00:16:42.280 because you set the expectation. 441 00:16:42.280 --> 00:16:43.800 Pro tip, dating advice. 442 00:16:43.800 --> 00:16:46.000 On first dates, I like to set the bars low as possible 443 00:16:46.000 --> 00:16:47.360 by admitting all my flaws. 444 00:16:47.360 --> 00:16:50.360 After telling my, now, wife, all my flaws, I joked, 445 00:16:50.360 --> 00:16:51.920 I can only go from here. 446 00:16:51.920 --> 00:16:53.640 Have you ever had a stranger tell you a new movie 447 00:16:53.640 --> 00:16:55.240 was awesome, then you go see it and think 448 00:16:55.240 --> 00:16:56.880 that wasn't as good as I expected? 449 00:16:56.880 --> 00:16:58.600 On the flip side, if you ever had someone tell you movie 450 00:16:58.600 --> 00:16:59.520 was terrible and then you ended up 451 00:16:59.520 --> 00:17:00.520 seeing it anyways and thought 452 00:17:00.520 --> 00:17:02.200 that wasn't as bad as I expected. 453 00:17:02.200 --> 00:17:03.440 Our expectations of an experience 454 00:17:03.440 --> 00:17:05.560 can dramatically affect the experience itself. 455 00:17:05.560 --> 00:17:08.080 We can increase goodwill by lowering expectations. 456 00:17:08.080 --> 00:17:09.800 It gives us room to over deliver. 457 00:17:09.840 --> 00:17:11.280 In the beginning, I promised everything 458 00:17:11.280 --> 00:17:13.080 in the kitchen sink to get people to buy. 459 00:17:13.080 --> 00:17:14.920 The filling on that turned into a nightmare. 460 00:17:14.920 --> 00:17:17.960 So I began inching down my promises while maintaining quality. 461 00:17:17.960 --> 00:17:19.280 It gave me more room to over deliver 462 00:17:19.280 --> 00:17:21.560 and I netted a major benefit, referrals. 463 00:17:21.560 --> 00:17:23.240 Customer expectations are fickle. 464 00:17:23.240 --> 00:17:25.200 That's why we set expectations for them. 465 00:17:25.200 --> 00:17:28.360 And if we set those expectations, we can exceed them. 466 00:17:28.360 --> 00:17:31.280 Action step, slowly lower the promises you make 467 00:17:31.280 --> 00:17:32.360 when making offers. 468 00:17:32.360 --> 00:17:34.200 Keep lowering them until your close rate slower. 469 00:17:34.200 --> 00:17:35.640 At that point, stop. 470 00:17:35.640 --> 00:17:37.440 This maximizes how many customers you get 471 00:17:37.440 --> 00:17:38.880 and the goodwill you vote with them. 472 00:17:38.880 --> 00:17:42.360 Maximize customers and more goodwill means more referrals. 473 00:17:42.360 --> 00:17:45.240 Three, increase perceived likelihood of achievement. 474 00:17:45.240 --> 00:17:47.560 Get more people, better results. 475 00:17:47.560 --> 00:17:48.920 The customers with the best results 476 00:17:48.920 --> 00:17:50.560 get the most value from a product. 477 00:17:50.560 --> 00:17:52.240 Figure out what they do to get the most value 478 00:17:52.240 --> 00:17:54.560 and you can help other customers do the same. 479 00:17:54.560 --> 00:17:56.240 Two steps ago to sell better customers 480 00:17:56.240 --> 00:17:58.200 we figured out who the best ones were. 481 00:17:58.200 --> 00:18:00.120 So now to get everyone the best results, 482 00:18:00.120 --> 00:18:01.680 we figured out what the best ones did. 483 00:18:02.680 --> 00:18:04.720 Let me show you what it looked like at gym lunch. 484 00:18:04.720 --> 00:18:06.760 We started by tracking customer activities, 485 00:18:06.760 --> 00:18:08.280 speed running their first fed, 486 00:18:08.280 --> 00:18:11.840 speed to their first sale, their tenants on calls, et cetera. 487 00:18:11.840 --> 00:18:14.080 Then we compared the activities of our average customers 488 00:18:14.080 --> 00:18:15.840 to the activities of our best customers. 489 00:18:15.840 --> 00:18:17.360 We found out something huge. 490 00:18:17.360 --> 00:18:19.440 If a gym owner ran paid ads and made a sale 491 00:18:19.440 --> 00:18:22.800 in the first seven days, their LTGP tripled. 492 00:18:22.800 --> 00:18:23.800 Once we realized this, 493 00:18:23.800 --> 00:18:25.800 we focused on getting everyone to launch ads 494 00:18:25.800 --> 00:18:27.640 and make sales in the first seven days. 495 00:18:27.640 --> 00:18:30.600 The results of our average customers skyrocketed. 496 00:18:30.600 --> 00:18:33.720 More customers, more testimonials and more referrals followed. 497 00:18:33.720 --> 00:18:36.560 Here's the process I used to get more people better results. 498 00:18:36.560 --> 00:18:39.280 Step one, survey customers to find the ones 499 00:18:39.280 --> 00:18:40.520 who get the best results. 500 00:18:40.520 --> 00:18:44.040 Step two, interview them to find out what they did differently. 501 00:18:44.040 --> 00:18:47.080 Step three, look at the actions they had in common. 502 00:18:47.080 --> 00:18:49.360 Step four, force new customers to repeat 503 00:18:49.360 --> 00:18:52.560 the actions that got the best customers the best results. 504 00:18:52.560 --> 00:18:54.600 Step five, measure the improvement 505 00:18:54.600 --> 00:18:57.120 in average customer results, speed and outcome. 506 00:18:57.120 --> 00:19:00.120 Step six, match the conditions of your guarantee 507 00:19:00.120 --> 00:19:01.760 to the actions that get the best results 508 00:19:01.760 --> 00:19:03.520 to get more people to do them. 509 00:19:03.520 --> 00:19:06.000 Pro tip, make the success activities 510 00:19:06.000 --> 00:19:07.760 to the conditions of your guarantee. 511 00:19:07.760 --> 00:19:11.320 Do not do this if you hate money and helping people. 512 00:19:11.320 --> 00:19:13.840 As soon as you start getting customers results, 513 00:19:13.840 --> 00:19:15.160 note what they did. 514 00:19:15.160 --> 00:19:18.600 Then start guaranteeing new customers those results, 515 00:19:18.600 --> 00:19:20.560 but do it on the condition that they do 516 00:19:20.560 --> 00:19:22.080 what the best customers did. 517 00:19:22.080 --> 00:19:23.720 The guarantee sells more people, 518 00:19:23.720 --> 00:19:25.640 the conditions get them better results. 519 00:19:25.640 --> 00:19:27.920 You win, they win. 520 00:19:27.920 --> 00:19:30.680 Action steps, figure out what the best people did, 521 00:19:30.680 --> 00:19:32.000 then get everyone to do it. 522 00:19:32.000 --> 00:19:33.400 Make your guarantees around the actions 523 00:19:33.400 --> 00:19:34.720 that create the most success, 524 00:19:34.720 --> 00:19:37.360 more success, more goodwill, or referrals. 525 00:19:40.160 --> 00:19:41.800 Hey, I hope you're enjoying the book chapter 526 00:19:41.800 --> 00:19:42.640 that you're listening to right now 527 00:19:42.640 --> 00:19:43.880 of $100 million leads. 528 00:19:43.880 --> 00:19:46.840 I took a long time putting together for you. 529 00:19:46.840 --> 00:19:49.400 So my only ask is that you just take a quick second 530 00:19:49.400 --> 00:19:52.240 and leave a review for the book on Amazon. 531 00:19:52.240 --> 00:19:55.360 It's the number one way that people find books. 532 00:19:55.360 --> 00:19:57.360 And this is a way of getting more people into our world. 533 00:19:57.360 --> 00:19:58.840 And so our mission acquisition dot com 534 00:19:58.840 --> 00:20:02.360 is to make real business education accessible to everyone. 535 00:20:02.360 --> 00:20:03.680 And I need your help. 536 00:20:03.680 --> 00:20:07.440 And so if you could do that just that one small action 537 00:20:07.440 --> 00:20:08.760 and it has a trade for the two years 538 00:20:08.760 --> 00:20:10.680 that I took putting this book together for you, 539 00:20:10.680 --> 00:20:11.600 it would mean the world to me. 540 00:20:11.600 --> 00:20:12.600 So thank you. 541 00:20:14.240 --> 00:20:16.760 Number four, decrease time delay. 542 00:20:16.760 --> 00:20:18.560 Make faster wins. 543 00:20:18.560 --> 00:20:21.680 I define a win as any positive experience a customer has. 544 00:20:21.680 --> 00:20:23.840 Faster wins increase the perception of speed, 545 00:20:23.840 --> 00:20:25.280 increase the likelihood of stick, 546 00:20:25.280 --> 00:20:27.760 and increase how much they trust you, triple win. 547 00:20:27.760 --> 00:20:31.000 To make wins feel faster, we give them wins more often. 548 00:20:31.000 --> 00:20:32.200 Let's imagine you have a product 549 00:20:32.200 --> 00:20:33.560 that takes a week to deliver. 550 00:20:33.560 --> 00:20:35.440 The customer can get one win at the end of the week 551 00:20:35.440 --> 00:20:37.800 or win every day with daily progress updates. 552 00:20:37.800 --> 00:20:40.400 Same amount of progress seven times the wins. 553 00:20:40.400 --> 00:20:42.920 On top of that, if someone said seven things would happen 554 00:20:42.920 --> 00:20:45.160 and all seven do, I trust them even more. 555 00:20:45.160 --> 00:20:46.920 Referring a friend is now at lower risks 556 00:20:46.920 --> 00:20:49.480 and seven promises were made and all seven were kept. 557 00:20:49.480 --> 00:20:51.600 Here's five ways I make wins happen faster 558 00:20:51.600 --> 00:20:53.000 in the real world. 559 00:20:53.000 --> 00:20:56.320 One, if I have seven small things to deliver, 560 00:20:56.320 --> 00:20:57.880 I deliver them at shorter intervals 561 00:20:57.880 --> 00:20:59.400 rather than all at once. 562 00:20:59.400 --> 00:21:01.240 Two, updates are wins. 563 00:21:01.240 --> 00:21:02.960 If it's a bigger project, I share updates 564 00:21:03.000 --> 00:21:04.320 as frequently as possible. 565 00:21:04.320 --> 00:21:06.200 You can never give someone too much good news 566 00:21:06.200 --> 00:21:08.040 and regular updates, progress or not, 567 00:21:08.040 --> 00:21:09.960 is better than leaving your customers hanging. 568 00:21:09.960 --> 00:21:12.080 Three, customers form their lasting impression 569 00:21:12.080 --> 00:21:14.720 of a business within 48 hours after they buy. 570 00:21:14.720 --> 00:21:16.840 Force a good impression, forces many wins 571 00:21:16.840 --> 00:21:18.280 as you can in that window, 572 00:21:18.280 --> 00:21:22.280 set many expectations, meet many expectations, repeat. 573 00:21:22.280 --> 00:21:24.480 Four, they should always know the next time 574 00:21:24.480 --> 00:21:25.520 they'll hear from you. 575 00:21:25.520 --> 00:21:28.080 I got a slick saying from a public CEO friend of mine, 576 00:21:28.080 --> 00:21:30.960 bam fam, book a meeting from a meeting. 577 00:21:30.960 --> 00:21:33.240 Again, never leave a customer in No Man's Land. 578 00:21:33.240 --> 00:21:36.120 They should always know what happens next. 579 00:21:36.120 --> 00:21:39.400 Five, never expect customers to forgive you, ever. 580 00:21:39.400 --> 00:21:40.480 So act like it. 581 00:21:40.480 --> 00:21:43.320 For example, you can deliver early, but never late. 582 00:21:43.320 --> 00:21:44.840 I add 50% to my timeline, 583 00:21:44.840 --> 00:21:45.960 so I always deliver early. 584 00:21:45.960 --> 00:21:48.760 That makes on time for me early for them. 585 00:21:48.760 --> 00:21:50.760 Action step, breakdown outcomes 586 00:21:50.760 --> 00:21:52.400 into the smallest possible increment 587 00:21:52.400 --> 00:21:54.120 communicated as often as reasonable, 588 00:21:54.120 --> 00:21:56.320 even if there is no progress, update them. 589 00:21:56.320 --> 00:21:58.840 Set timelines with breathing room, deliver early, 590 00:21:58.840 --> 00:22:00.880 more customer wins means more good will 591 00:22:00.880 --> 00:22:03.560 and more good will means more referrals. 592 00:22:03.560 --> 00:22:05.640 Five, decrease effort and sacrifice. 593 00:22:05.640 --> 00:22:07.280 Keep making your stuff better. 594 00:22:07.280 --> 00:22:09.160 If the customer does less stuff they hate 595 00:22:09.160 --> 00:22:11.200 to benefit from your product, you've made it better. 596 00:22:11.200 --> 00:22:12.400 If the customer gives up fewer things 597 00:22:12.400 --> 00:22:13.720 they love to benefit from your product, 598 00:22:13.720 --> 00:22:14.720 you've made it better. 599 00:22:14.720 --> 00:22:16.320 And there's no such thing as a perfect product. 600 00:22:16.320 --> 00:22:17.840 You can always make it better. 601 00:22:17.840 --> 00:22:19.400 And the easier you make it for them to benefit, 602 00:22:19.400 --> 00:22:20.360 the more good will you get 603 00:22:20.360 --> 00:22:21.800 and the more likely they'll refer. 604 00:22:21.800 --> 00:22:24.200 Here's my process to keep making my stuff better. 605 00:22:24.200 --> 00:22:26.560 Step one, use customer service data, surveys, 606 00:22:26.560 --> 00:22:28.960 and reviews to find those common problem with your product. 607 00:22:28.960 --> 00:22:30.680 Step two, figure out your fix. 608 00:22:30.680 --> 00:22:32.360 To get a head start, get feedback from the customers 609 00:22:32.360 --> 00:22:35.320 who made your product work despite the problem it has. 610 00:22:35.320 --> 00:22:38.000 Step three, use that feedback to improve your product. 611 00:22:38.000 --> 00:22:40.120 Step four, give the new version to a small group 612 00:22:40.120 --> 00:22:41.600 of your struggling customers. 613 00:22:41.600 --> 00:22:43.680 Step five, get your next round of feedback. 614 00:22:43.680 --> 00:22:45.040 If you solve the original problem, 615 00:22:45.040 --> 00:22:46.200 then roll it out to all customers. 616 00:22:46.200 --> 00:22:48.440 If it didn't, go back to step two. 617 00:22:48.440 --> 00:22:50.720 Step six, move on to the next most common problem 618 00:22:50.720 --> 00:22:51.840 and repeat the process. 619 00:22:51.840 --> 00:22:53.560 Do this until the end of time. 620 00:22:53.560 --> 00:22:55.520 Action step, keep making your stuff better. 621 00:22:55.520 --> 00:22:57.920 Survey, make changes, implement, measure, repeat. 622 00:22:57.920 --> 00:22:59.480 I run this process every month. 623 00:22:59.480 --> 00:23:02.040 Set this as a recurring monthly processing your business. 624 00:23:02.040 --> 00:23:03.360 A product that takes less effort 625 00:23:03.360 --> 00:23:05.520 and has fewer sacrifices means more goodwill, 626 00:23:05.520 --> 00:23:08.080 and more goodwill, you guessed it, means more referrals. 627 00:23:09.400 --> 00:23:11.920 Six, call to action. 628 00:23:11.920 --> 00:23:13.400 Tell them what to buy next. 629 00:23:14.640 --> 00:23:17.040 If you have an amazing product, they'll want more. 630 00:23:17.040 --> 00:23:18.680 You have to satisfy their desire to buy. 631 00:23:18.680 --> 00:23:21.680 If you don't, they'll still buy, but from someone else. 632 00:23:21.680 --> 00:23:24.160 Don't let that happen, sell them again. 633 00:23:24.160 --> 00:23:25.400 You can either sell them a new thing 634 00:23:25.400 --> 00:23:26.760 or more of the thing they just bought. 635 00:23:26.760 --> 00:23:28.520 In either case, you'll get even more goodwill 636 00:23:28.560 --> 00:23:30.120 and extend the lifetime of the customer. 637 00:23:30.120 --> 00:23:31.800 And besides, the more stuff they buy, 638 00:23:31.800 --> 00:23:34.040 the more stuff they can refer their friends to. 639 00:23:34.040 --> 00:23:35.960 For example, in a weight loss company we know, 640 00:23:35.960 --> 00:23:37.400 lots of customers referred friends 641 00:23:37.400 --> 00:23:39.440 to their first-year product, but some didn't. 642 00:23:39.440 --> 00:23:41.000 A lot of those customers who didn't refer 643 00:23:41.000 --> 00:23:43.520 to the first product when they bought their more expensive thing 644 00:23:43.520 --> 00:23:44.920 refer their friends to that. 645 00:23:44.920 --> 00:23:46.640 So you just gotta keep selling. 646 00:23:46.640 --> 00:23:48.800 In my experience, people obsess over their front end offers, 647 00:23:48.800 --> 00:23:49.680 and that makes sense. 648 00:23:49.680 --> 00:23:52.240 But then they neglect the back end and customers fall off. 649 00:23:52.240 --> 00:23:53.560 And customers that fall off your product 650 00:23:53.560 --> 00:23:56.840 are unlikely to refer, so keep selling them so they don't. 651 00:23:56.840 --> 00:23:58.480 Action step, treat every customer 652 00:23:58.600 --> 00:23:59.960 like it's the first time you've sold them. 653 00:23:59.960 --> 00:24:02.440 Make sure your next offer is more compelling than your first. 654 00:24:02.440 --> 00:24:05.080 Remind them to buy more after each big win. 655 00:24:05.080 --> 00:24:06.720 More things to buy means more opportunities 656 00:24:06.720 --> 00:24:07.760 to add even more value. 657 00:24:07.760 --> 00:24:10.000 More value means more goodwill and more goodwill, 658 00:24:10.000 --> 00:24:12.320 you guessed it, means more referrals. 659 00:24:12.320 --> 00:24:14.240 One question to rule them all. 660 00:24:14.240 --> 00:24:16.800 Let's consolidate these six steps into one thought experiment 661 00:24:16.800 --> 00:24:18.760 and encourage you to try it out with your team. 662 00:24:18.760 --> 00:24:19.840 Here it is. 663 00:24:19.840 --> 00:24:21.800 You've lost all your customers, but one. 664 00:24:21.800 --> 00:24:24.200 The gods of advertising ban you from doing the core four 665 00:24:24.200 --> 00:24:25.240 and decree. 666 00:24:25.240 --> 00:24:27.880 All customers must come from this one customer. 667 00:24:27.880 --> 00:24:29.920 Violate our terms and we will destroy your business 668 00:24:29.920 --> 00:24:32.240 and every other business you start for eternity. 669 00:24:32.240 --> 00:24:33.320 Tough break. 670 00:24:33.320 --> 00:24:35.960 But the question remains, how would you treat this customer? 671 00:24:35.960 --> 00:24:37.640 What would you do to make their experience so valuable 672 00:24:37.640 --> 00:24:38.760 they would send all their friends? 673 00:24:38.760 --> 00:24:40.680 What kind of result would they need to get? 674 00:24:40.680 --> 00:24:42.720 What would their onboarding be? 675 00:24:42.720 --> 00:24:44.520 What type of customer would you pick? 676 00:24:44.520 --> 00:24:45.880 Think about it, write it out. 677 00:24:45.880 --> 00:24:47.200 Your business depends on it. 678 00:24:47.200 --> 00:24:49.040 Then do it. 679 00:24:49.040 --> 00:24:50.760 Start acting like the advertising gods 680 00:24:50.760 --> 00:24:53.840 will revoke your core four privileges at any moment. 681 00:24:53.840 --> 00:24:55.520 Soon you'll see you have no choice 682 00:24:55.520 --> 00:24:58.800 but to start adding more value to get more customer referrals. 683 00:24:58.800 --> 00:24:59.760 Now that we cover that, 684 00:24:59.760 --> 00:25:01.880 do you want to know how you can get even more referrals? 685 00:25:01.880 --> 00:25:03.440 Ask for them. 686 00:25:03.440 --> 00:25:04.480 Referrals. 687 00:25:04.480 --> 00:25:05.680 Ask for them. 688 00:25:05.680 --> 00:25:07.440 Do you know why businesses have so few referrals 689 00:25:07.440 --> 00:25:08.880 compared to what they could have? 690 00:25:08.880 --> 00:25:09.840 They never ask for them. 691 00:25:09.840 --> 00:25:11.080 Your customers like any audience 692 00:25:11.080 --> 00:25:12.720 can only know what to do if you tell them. 693 00:25:12.720 --> 00:25:14.600 Now I've tried a lot of referral strategies. 694 00:25:14.600 --> 00:25:17.600 Most failed and I struggled until I had this epiphany. 695 00:25:17.600 --> 00:25:20.600 Asking for referrals only works when you treat it like an offer. 696 00:25:20.600 --> 00:25:22.440 The referrals come when you show the value 697 00:25:22.440 --> 00:25:24.720 the customer gets when they refer their friends. 698 00:25:24.720 --> 00:25:26.320 Let me give you two quick case studies 699 00:25:26.320 --> 00:25:28.680 to show you the power of asking for referrals. 700 00:25:28.680 --> 00:25:30.160 Case to number one. 701 00:25:30.160 --> 00:25:32.280 Dropbox gave free storage to customers 702 00:25:32.280 --> 00:25:34.760 and free storage to their friends they referred. 703 00:25:34.760 --> 00:25:36.280 The referral program went viral 704 00:25:36.280 --> 00:25:40.160 and they 39 exed their business in 15 months. 705 00:25:40.160 --> 00:25:41.480 Case study two. 706 00:25:41.480 --> 00:25:44.080 PayPal gave $10 in credit to customers 707 00:25:44.080 --> 00:25:46.320 and $10 to the friends they referred. 708 00:25:46.320 --> 00:25:47.520 Within two years, 709 00:25:47.520 --> 00:25:49.400 the program helped them reach a million users 710 00:25:49.400 --> 00:25:52.120 and six years later they hit 100 million users. 711 00:25:52.120 --> 00:25:53.960 They still use it today. 712 00:25:54.000 --> 00:25:55.800 So how do we harness the same viral growth 713 00:25:55.800 --> 00:25:57.240 in our own small business? 714 00:25:57.240 --> 00:25:58.600 We do what they did. 715 00:25:58.600 --> 00:26:00.040 We ask for it. 716 00:26:00.040 --> 00:26:02.120 Seven ways to ask for referrals. 717 00:26:02.120 --> 00:26:04.360 There are three components to referral program. 718 00:26:04.360 --> 00:26:05.720 How you give the incentive, 719 00:26:05.720 --> 00:26:08.480 what you incentivize with and how you ask. 720 00:26:08.480 --> 00:26:10.040 Rather than give you a hundred variations 721 00:26:10.040 --> 00:26:11.200 that may or may not work, 722 00:26:11.200 --> 00:26:13.800 here are the seven combos that worked best for me. 723 00:26:13.800 --> 00:26:14.800 Number one. 724 00:26:14.800 --> 00:26:16.560 One-sided referral benefit. 725 00:26:16.560 --> 00:26:19.320 I'd rather be customers than a platform any day of the week. 726 00:26:19.320 --> 00:26:22.360 Pay your average cost to a car customer, aka CAC, 727 00:26:22.360 --> 00:26:24.400 to the referral or the friend. 728 00:26:24.400 --> 00:26:26.400 Make them aware of the incentive. 729 00:26:26.400 --> 00:26:27.320 Example. 730 00:26:27.320 --> 00:26:29.880 Imagine it costs $200 to get a customer. 731 00:26:29.880 --> 00:26:30.800 Ask the current customer 732 00:26:30.800 --> 00:26:33.360 to make an actual three-way introduction to a friend, 733 00:26:33.360 --> 00:26:35.680 via call, SMS or email. 734 00:26:35.680 --> 00:26:37.160 Not just to name a number. 735 00:26:37.160 --> 00:26:39.600 Also, ask them to do it right when they buy. 736 00:26:39.600 --> 00:26:40.520 Don't wait. 737 00:26:40.520 --> 00:26:43.200 Then write them a check for $200 from their friend signs up 738 00:26:43.200 --> 00:26:45.280 or give their friend $200 off. 739 00:26:46.200 --> 00:26:47.760 Example two. 740 00:26:47.760 --> 00:26:49.200 This works great for spouses 741 00:26:49.200 --> 00:26:51.360 because they both basically get the benefit. 742 00:26:51.360 --> 00:26:54.160 Always ask for the spouse and give a household discount. 743 00:26:54.160 --> 00:26:55.280 Two. 744 00:26:55.280 --> 00:26:57.200 Two-sided referral benefits. 745 00:26:57.200 --> 00:26:59.480 This is what dropbacks of PayPal used. 746 00:26:59.480 --> 00:27:01.640 We pay our CAC to both parties. 747 00:27:01.640 --> 00:27:03.680 Half goes to the referral and credit are cash 748 00:27:03.680 --> 00:27:05.680 and half goes to the friend and credit. 749 00:27:05.680 --> 00:27:07.520 This way, they both benefit. 750 00:27:07.520 --> 00:27:08.440 Example. 751 00:27:08.440 --> 00:27:10.000 We sell $500 programs. 752 00:27:10.000 --> 00:27:11.960 Our cost to get a customer's $200. 753 00:27:11.960 --> 00:27:13.240 For every friend someone refers, 754 00:27:13.240 --> 00:27:15.600 we give them $100 in cash and give the friend 755 00:27:15.600 --> 00:27:17.120 $100 off signing up. 756 00:27:17.120 --> 00:27:18.560 Good for up to three friends. 757 00:27:18.560 --> 00:27:21.840 This worked really well for my local businesses. 758 00:27:21.840 --> 00:27:22.960 Pro tip. 759 00:27:22.960 --> 00:27:24.880 Run your paid ads for free. 760 00:27:24.880 --> 00:27:26.000 In our service businesses, 761 00:27:26.000 --> 00:27:29.240 we routinely get an additional 25% to 30% 762 00:27:29.240 --> 00:27:30.680 of sign-ups as referrals. 763 00:27:30.680 --> 00:27:33.200 If we ask for a referral right when they signed up. 764 00:27:33.200 --> 00:27:35.920 So, if we sign up 100 clients for a promotion, 765 00:27:35.920 --> 00:27:38.920 we'd usually get another 25 to 30 clients from referrals. 766 00:27:38.920 --> 00:27:40.920 And since we always operate above three to one, 767 00:27:40.920 --> 00:27:42.600 LTGP to CAC ratio, 768 00:27:42.600 --> 00:27:44.960 the cash from referrals often cover the cost of ads 769 00:27:44.960 --> 00:27:47.280 and some bingo bingo. 770 00:27:47.280 --> 00:27:50.720 Number three, ask for a referral right when they buy. 771 00:27:50.720 --> 00:27:52.840 On the sales contracts or checkout page, 772 00:27:52.840 --> 00:27:54.680 ask for some names and phone numbers of people 773 00:27:54.680 --> 00:27:56.160 they'd like to do this with. 774 00:27:56.160 --> 00:27:58.200 Show them how they will get better results 775 00:27:58.200 --> 00:27:59.640 when they do it with a friend. 776 00:27:59.640 --> 00:28:00.480 Example. 777 00:28:00.480 --> 00:28:02.200 I had a new salesman come into one of my portfolio companies 778 00:28:02.200 --> 00:28:03.560 and shatter all the sales records 779 00:28:03.560 --> 00:28:04.920 for an upcoming event. 780 00:28:04.920 --> 00:28:06.720 We didn't know what was going on. 781 00:28:06.720 --> 00:28:07.920 So, I hopped on the phone with him. 782 00:28:07.920 --> 00:28:09.880 How are you selling more tickets than everyone else? 783 00:28:09.880 --> 00:28:11.160 He shrugged and said, 784 00:28:11.160 --> 00:28:12.440 I'm doing the same things as everyone else. 785 00:28:12.440 --> 00:28:14.040 I just make sure I ask them who else they'd want 786 00:28:14.040 --> 00:28:15.080 to have come with them. 787 00:28:15.080 --> 00:28:16.720 Then asked them to introduce me. 788 00:28:16.760 --> 00:28:18.720 Half his sales were from referrals, 789 00:28:18.720 --> 00:28:21.160 so simple and yet no one does it. 790 00:28:21.160 --> 00:28:22.600 Scripting example. 791 00:28:22.600 --> 00:28:24.520 People do our program with someone else 792 00:28:24.520 --> 00:28:25.840 to get three times the results. 793 00:28:25.840 --> 00:28:27.640 Who else could do this program with you? 794 00:28:27.640 --> 00:28:28.600 Very simple. 795 00:28:28.600 --> 00:28:29.560 Pro tip. 796 00:28:29.560 --> 00:28:31.920 Not if, but who. 797 00:28:31.920 --> 00:28:34.360 Once someone is a customer, be more direct with your ask. 798 00:28:34.360 --> 00:28:36.840 Don't ask if they know someone, ask who they know. 799 00:28:37.920 --> 00:28:41.160 Four, add referrals as a negotiation ship. 800 00:28:41.160 --> 00:28:43.320 On top of that, you can ask for referrals 801 00:28:43.320 --> 00:28:45.280 as a way to negotiate a lower price. 802 00:28:45.280 --> 00:28:46.400 In other words, 803 00:28:46.400 --> 00:28:49.000 if someone wants to pay $400 in your price is 500, 804 00:28:49.000 --> 00:28:50.840 you can give them a discount in exchange for 805 00:28:50.840 --> 00:28:52.360 an introduction to three friends. 806 00:28:52.360 --> 00:28:53.720 You can ethically charge a different price 807 00:28:53.720 --> 00:28:54.840 for the same thing because you've changed 808 00:28:54.840 --> 00:28:55.960 the terms of the sale. 809 00:28:55.960 --> 00:28:58.600 Example, I can't do anything less than 500 down, 810 00:28:58.600 --> 00:29:00.080 but if you make a three-way text introduction 811 00:29:00.080 --> 00:29:01.400 to a few friends right now, 812 00:29:01.400 --> 00:29:03.440 I'd be happy to cut that initiation fee. 813 00:29:03.440 --> 00:29:05.160 And to address the question you didn't ask, 814 00:29:05.160 --> 00:29:06.560 if a full price customer finds out 815 00:29:06.560 --> 00:29:09.080 you gave someone else a discount, which I've had happen, 816 00:29:09.080 --> 00:29:10.320 here's all you say. 817 00:29:10.320 --> 00:29:12.840 Yeah, Stacy got $100 off because she referred through friends. 818 00:29:12.840 --> 00:29:15.480 I'm happy to give you $100 if you for a meet three friends. 819 00:29:15.480 --> 00:29:16.800 Who do you have in mind? 820 00:29:16.800 --> 00:29:18.640 They either back off or they give you three friends. 821 00:29:18.640 --> 00:29:20.200 When, when? 822 00:29:20.200 --> 00:29:22.760 Number five, referral events where people get points, 823 00:29:22.760 --> 00:29:24.680 credits, dollars, or even just bragging rights 824 00:29:24.680 --> 00:29:27.360 for bringing friends within an explicit time period. 825 00:29:27.360 --> 00:29:30.040 Referral events typically last from one to four weeks. 826 00:29:30.040 --> 00:29:31.280 Whenever you run one of these events, 827 00:29:31.280 --> 00:29:33.800 sell everyone on the benefits of working with others. 828 00:29:33.800 --> 00:29:35.520 Use some stats, internal or external 829 00:29:35.520 --> 00:29:36.560 to show high success rates 830 00:29:36.560 --> 00:29:38.600 and the selfish benefit of bringing friends. 831 00:29:38.600 --> 00:29:42.040 I use names like bring a friend promotion, spouse challenge, 832 00:29:42.040 --> 00:29:44.520 accountability buddy, coach challenge, 833 00:29:44.520 --> 00:29:46.160 promotion where you create teams 834 00:29:46.160 --> 00:29:47.440 with your employees and customers. 835 00:29:47.440 --> 00:29:49.640 This works well in coaching style businesses. 836 00:29:50.840 --> 00:29:53.680 Six, ongoing referral programs. 837 00:29:53.680 --> 00:29:56.840 Instead of running a limited duration referral promotion, 838 00:29:56.840 --> 00:29:58.680 you talk about the benefits of doing things 839 00:29:58.680 --> 00:29:59.720 without there's all the time. 840 00:29:59.720 --> 00:30:02.960 Think in your free content, outreach, paid ads, et cetera. 841 00:30:02.960 --> 00:30:06.000 After a buddy did this, he saw a 33% boost in total signups. 842 00:30:06.000 --> 00:30:07.880 For context, he had a million customers 843 00:30:07.880 --> 00:30:09.240 by tickets to his virtual event. 844 00:30:09.240 --> 00:30:11.640 And 250,000 of them were referred. 845 00:30:11.640 --> 00:30:13.280 This stuff works. 846 00:30:13.280 --> 00:30:16.520 Seven, unlockable referral bonuses. 847 00:30:16.520 --> 00:30:18.680 Create bonuses for people who won, refer, 848 00:30:18.680 --> 00:30:21.440 and two leave a testimonial, a few examples. 849 00:30:21.440 --> 00:30:25.320 Unlock VIP bonuses, courses, tokens, status, training, 850 00:30:25.320 --> 00:30:27.640 merchandise, service levels, premium support, 851 00:30:27.640 --> 00:30:29.760 additional hours of service, et cetera. 852 00:30:29.760 --> 00:30:31.680 Unlockable referral bonuses work well 853 00:30:31.680 --> 00:30:33.280 if you don't like paying out cash. 854 00:30:33.280 --> 00:30:36.040 The bonuses can also be for both parties if you like 855 00:30:36.040 --> 00:30:37.880 since they cost you less than cash. 856 00:30:37.880 --> 00:30:40.720 Visit the lead magnet section for some extra inspiration. 857 00:30:40.720 --> 00:30:43.000 As always, the more insane you make the offer, 858 00:30:43.000 --> 00:30:44.400 the more people will refer. 859 00:30:44.400 --> 00:30:46.360 If you want them to refer, make it so good 860 00:30:46.360 --> 00:30:47.400 they'd be stupid not to. 861 00:30:49.040 --> 00:30:50.680 You're only limited by your creativity. 862 00:30:50.680 --> 00:30:52.600 Here's what it looks like to combine a few of the strategies 863 00:30:52.600 --> 00:30:55.160 above into a killer referral promotion. 864 00:30:55.160 --> 00:30:56.720 Give everyone a gift card for one third 865 00:30:56.720 --> 00:30:58.240 the cost of their program. 866 00:30:58.240 --> 00:31:00.040 Tell them they can give it to a friend of theirs 867 00:31:00.040 --> 00:31:01.520 if they sign up with them. 868 00:31:01.520 --> 00:31:03.000 Give the gift card an expiration date 869 00:31:03.000 --> 00:31:05.400 within seven to 14 days from the date you give it to them. 870 00:31:05.400 --> 00:31:06.960 It'll force them to use it. 871 00:31:06.960 --> 00:31:09.600 This gives the referral status when they give it to their friend 872 00:31:09.640 --> 00:31:13.440 rather than saying, hey, join this program for $2,000 off, 873 00:31:13.440 --> 00:31:15.680 they say, hey, I got this gift card for $2,000. 874 00:31:15.680 --> 00:31:16.520 Do you want to use it? 875 00:31:16.520 --> 00:31:17.480 I don't want to waste it. 876 00:31:17.480 --> 00:31:20.080 It's seen as a much bigger deal for them and you. 877 00:31:20.080 --> 00:31:21.600 You can still use the three way introduction 878 00:31:21.600 --> 00:31:22.600 with this tactic. 879 00:31:22.600 --> 00:31:24.720 Then text a picture of the gift card. 880 00:31:24.720 --> 00:31:26.920 Bonus points if you write the friend's name on it 881 00:31:26.920 --> 00:31:28.440 before texting the picture. 882 00:31:28.440 --> 00:31:29.560 It makes it feel personalized 883 00:31:29.560 --> 00:31:30.680 and gives you a legitimate reason 884 00:31:30.680 --> 00:31:33.120 for asking for the friend's name, wink. 885 00:31:33.120 --> 00:31:36.520 PS, you can also sell the gift cards at 90% off 886 00:31:36.520 --> 00:31:39.280 as purchasable gifts only for friends of customers. 887 00:31:39.280 --> 00:31:41.080 The referral looks like they spend a lot of money 888 00:31:41.080 --> 00:31:43.280 and you get paid to get new customers. 889 00:31:43.280 --> 00:31:44.880 I can hardly think of a better way to make money. 890 00:31:44.880 --> 00:31:47.760 Again, the only limit is your creativity. 891 00:31:47.760 --> 00:31:51.160 Pro tip, match the thing you give with the thing you sell. 892 00:31:51.160 --> 00:31:52.280 If you don't want to give away money, 893 00:31:52.280 --> 00:31:53.680 try to match the referral incentive 894 00:31:53.680 --> 00:31:54.680 with the core product you sell. 895 00:31:54.680 --> 00:31:57.160 For example, if you have a t-shirt manufacturing company, 896 00:31:57.160 --> 00:31:59.040 give away free t-shirts makes a lot of sense 897 00:31:59.040 --> 00:32:00.280 because you're incentive will attract people 898 00:32:00.280 --> 00:32:01.560 who actually want t-shirts 899 00:32:01.560 --> 00:32:03.320 and they're more likely to become paying customers. 900 00:32:03.320 --> 00:32:05.560 Hence, that's why the gift card works so well. 901 00:32:05.560 --> 00:32:08.000 On the other hand, if you give away an amazing limited 902 00:32:08.000 --> 00:32:10.280 edition t-shirt for your IT services business, 903 00:32:10.280 --> 00:32:13.480 it may or may not attract people who want IT services. 904 00:32:13.480 --> 00:32:16.200 So try to match the thing you give with the thing you sell. 905 00:32:16.200 --> 00:32:17.600 Conclusion. 906 00:32:17.600 --> 00:32:19.680 Referrals aren't an advertising method you can do. 907 00:32:19.680 --> 00:32:20.960 It's not to one trick or hack, 908 00:32:20.960 --> 00:32:22.160 although we learned some of those. 909 00:32:22.160 --> 00:32:24.600 It's a way of doing business and it starts with you. 910 00:32:24.600 --> 00:32:27.160 After all, referring is always a risk for the customer. 911 00:32:27.160 --> 00:32:29.000 They risk their goodwill with their friend 912 00:32:29.000 --> 00:32:30.320 in the hopes of getting more 913 00:32:30.320 --> 00:32:32.600 by showing them something cool, your stuff. 914 00:32:32.600 --> 00:32:34.880 So customers only refer when they think it's very likely 915 00:32:34.880 --> 00:32:36.360 their friend will have a good experience. 916 00:32:36.400 --> 00:32:37.200 In other words, 917 00:32:37.200 --> 00:32:38.440 when the benefits to them personally 918 00:32:38.440 --> 00:32:40.560 outweigh the risk of hurting a relationship with that friend. 919 00:32:40.560 --> 00:32:42.560 So we add benefits for them and their friends 920 00:32:42.560 --> 00:32:45.120 with incentives and we lower the risk by building goodwill 921 00:32:45.120 --> 00:32:46.960 showing we deliver on our promises. 922 00:32:46.960 --> 00:32:48.600 And we do that by using the six ways 923 00:32:48.600 --> 00:32:50.200 to give your customers more valuable. 924 00:32:50.200 --> 00:32:51.280 Now don't get me wrong. 925 00:32:51.280 --> 00:32:52.760 Building goodwill does a fantastic job 926 00:32:52.760 --> 00:32:54.000 of getting referrals on its own. 927 00:32:54.000 --> 00:32:55.440 But if we're smart, which we are, 928 00:32:55.440 --> 00:32:56.800 we capitalize on that goodwill. 929 00:32:56.800 --> 00:32:57.880 So we get even more referrals 930 00:32:57.880 --> 00:32:59.840 by using the seven ways to ask for them. 931 00:32:59.840 --> 00:33:01.520 So give more than you get 932 00:33:01.520 --> 00:33:02.960 and you'll never go hungry again. 933 00:33:02.960 --> 00:33:04.560 This is how we treat our customers. 934 00:33:04.560 --> 00:33:06.160 Do this and you can monetize goodwill 935 00:33:06.160 --> 00:33:07.000 forever. 936 00:33:07.000 --> 00:33:08.040 To keep this in perspective, 937 00:33:08.040 --> 00:33:09.560 I always remind myself, 938 00:33:09.560 --> 00:33:12.680 I'm compensated tomorrow for the value I provide today. 939 00:33:12.680 --> 00:33:13.640 Action items. 940 00:33:13.640 --> 00:33:15.120 Figure out your referral percentages 941 00:33:15.120 --> 00:33:17.280 and turn percentages to set a baseline. 942 00:33:17.280 --> 00:33:18.960 Implement the six giving value steps 943 00:33:18.960 --> 00:33:20.080 to build goodwill. 944 00:33:20.080 --> 00:33:21.520 Then capitalize on that goodwill 945 00:33:21.520 --> 00:33:24.800 using one or more of the seven ways to ask for referrals. 946 00:33:24.800 --> 00:33:25.880 Next up. 947 00:33:25.880 --> 00:33:28.360 So now we have to figure out how to scale a team. 948 00:33:28.360 --> 00:33:30.800 It looks like we'll have to call out potential teammates, 949 00:33:30.800 --> 00:33:32.520 show them the value of joining the team, 950 00:33:32.520 --> 00:33:33.560 then ask them to join. 951 00:33:33.560 --> 00:33:35.040 Wait, that sounds familiar. 952 00:33:35.040 --> 00:33:35.880 But seriously, 953 00:33:35.880 --> 00:33:37.240 if you really want a $100 million 954 00:33:37.240 --> 00:33:38.280 leads machine, buckle up. 955 00:33:38.280 --> 00:33:39.400 The most viable chapter in the book 956 00:33:39.400 --> 00:33:41.200 is coming up next, employees. 957 00:33:41.200 --> 00:33:42.720 For real, this isn't a boring chapter 958 00:33:42.720 --> 00:33:43.520 and you're gonna need them 959 00:33:43.520 --> 00:33:45.400 if you wanna make the big money. 960 00:33:45.400 --> 00:33:46.360 Free gift. 961 00:33:46.360 --> 00:33:47.440 Bonus. 962 00:33:47.440 --> 00:33:48.920 Customer referral frenzy. 963 00:33:48.920 --> 00:33:50.440 If you wanna know more ways 964 00:33:50.440 --> 00:33:51.440 to use the highest leverage 965 00:33:51.440 --> 00:33:52.960 most profitable ways to getting customers, 966 00:33:52.960 --> 00:33:54.600 I just made a training for you. 967 00:33:54.600 --> 00:33:55.560 You can get it here free. 968 00:33:55.560 --> 00:33:58.120 I was just not calm for slash training for slash leads. 969 00:33:59.800 --> 00:34:01.160 I'll be enjoying the customer referral section. 970 00:34:01.160 --> 00:34:02.720 I feel like it wouldn't be complete without me asking you 971 00:34:02.720 --> 00:34:05.840 to refer a friend to this podcast or the book. 972 00:34:05.840 --> 00:34:08.280 And if you wanna read while you listen, 973 00:34:08.280 --> 00:34:10.360 which is actually how I prefer to consume content, 974 00:34:10.360 --> 00:34:12.040 it'll store the book in more places. 975 00:34:12.040 --> 00:34:13.440 I just want you to win so that ultimately, 976 00:34:13.440 --> 00:34:14.840 one day I can invest in your business 977 00:34:14.840 --> 00:34:16.360 and that is myself as a attention. 978 00:34:16.360 --> 00:34:20.000 That being said, next we have employees and agencies 979 00:34:20.000 --> 00:34:22.480 and this one is one that's gonna be a sleeper. 980 00:34:22.480 --> 00:34:23.720 This is gonna be a dark horse 981 00:34:23.720 --> 00:34:25.480 and this is the one where the big business owners 982 00:34:25.480 --> 00:34:26.640 are nodding their heads and they're like, 983 00:34:26.640 --> 00:34:27.720 can't wait to get to this one 984 00:34:27.720 --> 00:34:29.440 and the small business owners don't get it yet. 985 00:34:29.440 --> 00:34:32.200 And so I've broken down two huge parts. 986 00:34:32.200 --> 00:34:35.160 One is that I learned every new platform 987 00:34:35.160 --> 00:34:38.240 that you have seen me on first by using an agency 988 00:34:38.240 --> 00:34:39.760 in an entirely unique method 989 00:34:39.760 --> 00:34:41.480 that I don't see anyone else talking about 990 00:34:41.480 --> 00:34:43.560 and it's how I engage with every single agency 991 00:34:43.560 --> 00:34:44.760 and I'll give you the script 992 00:34:44.760 --> 00:34:46.920 and how to negotiate it, everything down the tee 993 00:34:46.920 --> 00:34:48.040 in the next episode. 994 00:34:48.040 --> 00:34:50.960 On top of that, I'll show you how I've leveraged employees 995 00:34:50.960 --> 00:34:52.600 in order to get more people to find out about it 996 00:34:52.600 --> 00:34:54.800 by stuff without spending more minutes on it. 997 00:34:55.640 --> 00:35:00.320 This has been $100 million leads written by Alex Ramozi, 998 00:35:01.320 --> 00:35:02.800 read by Alex Ramozi. 999 00:35:02.800 --> 00:35:06.440 Copyright 2023, acquisition.com, audio production, 1000 00:35:06.440 --> 00:35:09.560 copyright 2023, acquisition.com, media.