WEBVTT 1 00:00:00.000 --> 00:00:07.200 The vast majority of people hate change more than they hate losing and would rather just lose. 2 00:00:07.200 --> 00:00:10.160 Welcome to the Jim Seekers podcast where you talk about how to get more customers, 3 00:00:10.160 --> 00:00:12.560 how to make more per customer and how to keep them longer. 4 00:00:12.560 --> 00:00:15.920 And the many failures and lessons that we have learned along the way. 5 00:00:15.920 --> 00:00:17.840 I hope you enjoy and subscribe. 6 00:00:18.640 --> 00:00:24.720 We're in a place right now where remote is selling like hotcakes and the vast majority of people 7 00:00:24.720 --> 00:00:31.280 hate change more than they hate losing and would rather just lose because they were so burned 8 00:00:31.280 --> 00:00:36.080 out of being Jim owners that this gave them a perfectly acceptable experience. 9 00:00:36.080 --> 00:00:38.480 Right? They could look at their parents, they could look at their wife and they're like, 10 00:00:38.480 --> 00:00:41.760 you know, I tried my hardest and everyone's going to say, you're right, 11 00:00:41.760 --> 00:00:44.400 who is going to guess Corona was going to happen? It's not on you. 12 00:00:44.400 --> 00:00:47.760 And so if you want to quit, this is the absolute best opportunity to quit. 13 00:00:47.760 --> 00:00:52.080 But if you're not that person and you want to win, this is how you do it. 14 00:00:52.080 --> 00:00:54.800 And you can do it now because the people who actually execute right now 15 00:00:54.800 --> 00:00:59.680 lead costs are 50% off right now because no one's marketing, especially other Jim's in your area. 16 00:01:00.880 --> 00:01:03.360 How's it going, everyone? And welcome to the Fitness Founders podcast. 17 00:01:03.360 --> 00:01:05.840 I'm Kevin Mannion, VP Marketing here at Glofots. 18 00:01:05.840 --> 00:01:10.000 This week we talked to the great Alex Hermosi, author of Jim Launch Secrets. 19 00:01:10.000 --> 00:01:13.600 Alex talks about how to make your online business a revenue driving machine, 20 00:01:14.400 --> 00:01:17.200 creating value with accountability for your members, 21 00:01:17.200 --> 00:01:19.520 and the key to mastering sales over the phone. 22 00:01:20.240 --> 00:01:22.560 It's a masterclass, so let's get started. 23 00:01:27.120 --> 00:01:29.120 Alex Hermosi, welcome to the show. 24 00:01:30.080 --> 00:01:31.600 Thanks for having me. Appreciate it. 25 00:01:31.600 --> 00:01:35.440 Yeah, so you're pumping out content yourself and I really want to give you a platform 26 00:01:35.440 --> 00:01:40.240 for our listeners to get some key takeaways now that the world has changed and how they can 27 00:01:40.240 --> 00:01:44.400 adapt to that. We'll be businesses out there that are ahead of this and they're doing really 28 00:01:44.400 --> 00:01:48.640 well and there's other ones that are probably paralyzed by fear and uncertainty. 29 00:01:49.280 --> 00:01:53.920 I'd really like to start there at the start and maybe tell us a little bit around the mindset 30 00:01:53.920 --> 00:01:59.280 people need to have now that the sky's fallen and how should they be thinking about their businesses. 31 00:01:59.280 --> 00:02:01.280 I'll say two kind of, I would say major points. 32 00:02:01.280 --> 00:02:05.600 The first one is, whatever there's panic, panic is just an expression of pain. 33 00:02:06.400 --> 00:02:09.440 Just larger pain within a marketplace, right? That's what panic is. 34 00:02:09.440 --> 00:02:12.880 And so whenever there's lots of pain, it means there's always lots of problems and problems means 35 00:02:12.880 --> 00:02:17.680 opportunities to be solved. And so when there's always panic, it means that you can make lots of 36 00:02:17.680 --> 00:02:22.720 profit if you are able to realign your services with what people want now. And so if you're no longer 37 00:02:22.720 --> 00:02:26.640 able to fulfill in the way you are accustomed to, the problem will still exist. Weight loss hasn't 38 00:02:26.640 --> 00:02:30.080 changed, right? People still want to be healthy. It's just, can you pivot the way you provide the 39 00:02:30.080 --> 00:02:35.760 services into a different channel? And most of us already have the skill set to provide nutrition 40 00:02:35.760 --> 00:02:39.760 coaching and accountability, et cetera. And if you can make the pivot, then you can actually 41 00:02:39.760 --> 00:02:44.480 meet an outsized demand where there's less supply of it. And so if you've looked at over the 42 00:02:44.480 --> 00:02:48.400 last 30 days, online training, depending on the source what you're looking at, is grown between 43 00:02:48.400 --> 00:02:54.160 5x and 9x, just within the last 30 days. And that's because the vast majority of the population, 44 00:02:54.160 --> 00:02:59.680 general population is still behind the curve in terms of understanding online. I mean, many 45 00:02:59.680 --> 00:03:06.160 people had never been on a Zoom call until like this month. And so it gives us an opportunity as 46 00:03:06.160 --> 00:03:10.960 gym owners to kind of pivot our clientele in the marketplace that we're in local or even beyond 47 00:03:10.960 --> 00:03:15.440 that into a higher profit model, which is one of the opportunities that exists because online 48 00:03:15.440 --> 00:03:19.600 training and remote training has four higher margins than in-person brick and mortar service. 49 00:03:20.640 --> 00:03:24.400 Yeah, I think that's really interesting. And you know, we'll just kind of really dig in there, 50 00:03:24.400 --> 00:03:30.640 a little bit deeper, taking the idea of in the future being potentially a more profitable 51 00:03:30.720 --> 00:03:37.360 business model. But if we start with, say, operations and then maybe retention, what are some people 52 00:03:37.360 --> 00:03:44.240 that you're working with doing to cut back on what they're spending and retain the people that 53 00:03:44.240 --> 00:03:50.240 are already paying them? Yep. So first thing is that any business when they're in a constrained 54 00:03:50.240 --> 00:03:55.520 environment have to focus on revenue generating activities. And so every employee, and remember, 55 00:03:55.520 --> 00:04:00.000 if you've changed your model, you can never have the mindset of I have to create work for someone. 56 00:04:00.000 --> 00:04:05.040 You have to create a business model and then people either fit in that model they don't. And so 57 00:04:05.040 --> 00:04:11.120 right now, if you're in a remote setting, people are either retaining your existing customers or 58 00:04:11.120 --> 00:04:17.280 they are generating revenue from new clients from sales. That's all there is. Honestly, a remote 59 00:04:17.280 --> 00:04:23.440 gym setting is actually a more operationally simple model than an in-person model, the difficulties 60 00:04:23.440 --> 00:04:27.760 in online acquisition. But if you crack the acquisition part, then you actually have a very, 61 00:04:27.760 --> 00:04:32.560 very, very sound model because the compensation structure for remote, the way that we promote it 62 00:04:32.560 --> 00:04:38.240 within our community is an 80 to 20 split. So the coaches will get 20% of the recurring revenue from 63 00:04:38.240 --> 00:04:43.520 the members that they're maintaining. And 80% goes to the business. And so the difference is that 64 00:04:43.520 --> 00:04:48.000 if you are fulfilling online, then you don't have the rent, you don't necessarily have the front desk 65 00:04:48.000 --> 00:04:52.240 girl, you don't have the cleaning, you don't have the toilet paper, you don't have the variety of 66 00:04:52.240 --> 00:04:57.040 things that come along with that. And so you can actually run a very high gross margin business, 67 00:04:57.040 --> 00:05:00.400 a higher gross margin business. So that $200 a month you used to get in person, 68 00:05:00.400 --> 00:05:04.480 you may only collect 12 and a half percent, which is the industry average in terms of profit. 69 00:05:04.480 --> 00:05:10.240 But instead of that, go to a much higher 50, maybe 60, 70% margin in terms of what you actually can 70 00:05:10.240 --> 00:05:15.520 take home after the smaller costs that are associated with software, etc. Yeah, and I think there's 71 00:05:15.520 --> 00:05:21.120 like obviously lots of immediate things you can do to cut the money that's going out of the business. 72 00:05:21.920 --> 00:05:27.280 But some people I think are still struggling with. How do they keep people paying them? 73 00:05:27.280 --> 00:05:31.600 Just at the very basic side, a 50 people paying me a hundred bucks a month. Yep. 74 00:05:31.600 --> 00:05:36.400 And they were coming in and things were fine. And now I don't know if I put them all on pause or 75 00:05:36.400 --> 00:05:43.360 watch what I did. Yeah. And now I'm not a lawyer and these laws differ by a tree in state, 76 00:05:43.360 --> 00:05:47.600 but my recommendation to our community has been don't pause people. You just have to ship what 77 00:05:47.600 --> 00:05:50.960 you were fulfilling. And so ultimately you said you were going to help these people lose weight 78 00:05:50.960 --> 00:05:54.400 and you that promise has not changed. You're still even delivering the services in a different 79 00:05:54.400 --> 00:05:59.520 manner. And so the primary thing and this is what everyone who's in the fitness space has to 80 00:05:59.520 --> 00:06:05.920 understand is that you're not going to be beach body at online workouts. Not in seven days on your 81 00:06:05.920 --> 00:06:12.080 budget. It's not going to be precision nutrition on nutrition, right? You're not going to beat them 82 00:06:12.080 --> 00:06:16.960 on like the quality of your nutrition plans. And so what are the competitive advantages that a small 83 00:06:16.960 --> 00:06:22.640 business owner has in a local or super local marketplace? It's accountability, all right? It's 84 00:06:22.640 --> 00:06:29.440 service. What we do is not selling zoom workouts. You can have them so that you can fulfill on it, 85 00:06:29.440 --> 00:06:34.240 you know, at gym launch, we provide 16 hours a day of one hour workouts that we do for our community. 86 00:06:34.240 --> 00:06:38.320 So we decided to centralize that for us so that all of our gyms could even cut more things off 87 00:06:38.320 --> 00:06:43.840 their plate. And so that if you were to simplify the business model, you have sales, sorry, 88 00:06:43.840 --> 00:06:47.280 you have marketing, so lead generation, you have lead nurture, which we automate. 89 00:06:47.280 --> 00:06:51.200 And then you have your sales appointments. Beyond the sales appointment, the only thing that's 90 00:06:51.200 --> 00:06:55.840 happening in fulfillment is just one on reach outs, one on one reach outs. So it's accountability. 91 00:06:56.480 --> 00:07:02.320 The primary value that the fitness professionals providing in a remote setting is the gap between 92 00:07:02.320 --> 00:07:06.960 what people think they should be doing and what they are actually doing. Everyone knows they need 93 00:07:06.960 --> 00:07:10.640 to stop eating, I don't know, am I allowed to have a pest on this? Yeah, you can say what you want. 94 00:07:10.720 --> 00:07:15.120 Okay, it's like people need to, people know they need to stop eating shit and move, right? 95 00:07:15.120 --> 00:07:20.720 They all know that and they can Google nutrition plant, they can Google free online workout. 96 00:07:20.720 --> 00:07:25.040 So you're not going to, you're not going to differentiate or provide value in excess in that way. 97 00:07:25.040 --> 00:07:29.120 What you are going to be able to provide value is getting them to do the thing that they are not doing. 98 00:07:30.080 --> 00:07:35.040 People pay for you to pay attention. You need to shift your mindset from I wasn't 99 00:07:35.040 --> 00:07:39.360 in person, then now I'm remote, to I was doing group training and now I am one on one. 100 00:07:40.080 --> 00:07:44.000 And if you can make that pivot in your own mind that, oh my gosh, I'm giving personal training 101 00:07:44.000 --> 00:07:48.880 as essentially personal coaching for dramatically less than what I would provide one on one 102 00:07:48.880 --> 00:07:52.320 coaching for in an in-person setting, then you can start seeing where the value of 103 00:07:52.320 --> 00:07:56.800 discrepancy creates something that someone will want to pay, the same amount that they pay for 104 00:07:56.800 --> 00:08:00.640 their gym membership for in a boutique setting for, you know, 150, 200 dollars a month. 105 00:08:00.640 --> 00:08:04.960 I think what you're saying at a high level is there's a lot of people that may be still trying 106 00:08:04.960 --> 00:08:11.200 to figure out how to get the zoom, the zoom workouts perfected. And they may be even afraid to get 107 00:08:11.200 --> 00:08:16.160 them started, but they're maybe missing a trick in starting from first business here and thinking, 108 00:08:16.160 --> 00:08:18.880 you know, why were people paying me the 150 dollars in the first place? 109 00:08:19.440 --> 00:08:24.240 And maybe the workout is obviously going to be a big part of it, but maybe the workout 110 00:08:24.240 --> 00:08:27.840 isn't the most important thing that I can offer while I'm remote. 111 00:08:28.480 --> 00:08:31.360 I would even make the argument that it was never the most important thing that they offered. 112 00:08:31.360 --> 00:08:34.480 It's just most people don't know that even the people who are in the business, right? 113 00:08:34.480 --> 00:08:39.920 If they wanted group workouts, you can go to the YMCA or Big Globo Gym and they have group workouts 114 00:08:39.920 --> 00:08:44.960 on the hour every hour in large groups for probably one tenth of what you're charging. 115 00:08:44.960 --> 00:08:49.280 So it's never been the workouts, right? It's been the service in the community, but you can't sell 116 00:08:49.280 --> 00:08:53.920 community, right? You sell the result when someone walks in the door, but they stay because of the 117 00:08:53.920 --> 00:08:57.360 relationship that they have with you, the coaches, and the other people who they worked out with, 118 00:08:57.920 --> 00:09:02.640 right? And so all we're doing is fast-tracking and being deliberate about our actions to 119 00:09:02.640 --> 00:09:06.400 intentionally create that relationship and make sure that the communication kid is that we have 120 00:09:06.400 --> 00:09:11.120 operationally matches, maintaining that relationship and then growing it so that the bond 121 00:09:11.120 --> 00:09:15.200 there still feels even more intimate than it was in the in-person setting. 122 00:09:16.000 --> 00:09:19.680 So I think the first thing people knew is, it primarily going to be weight loss, but thinking, 123 00:09:19.680 --> 00:09:23.520 you know, why were people coming between the first place and then really thinking, how can I create 124 00:09:23.520 --> 00:09:28.240 that accountability? How can I do a certain degree of keep that community aspect going as well? 125 00:09:29.040 --> 00:09:36.000 And just as I suppose to recap for everyone like, what are people doing to keep that accountability 126 00:09:36.000 --> 00:09:41.520 going? This is a communication cycle. So what we recommend is that you have to have some things 127 00:09:41.520 --> 00:09:45.040 that are expected of the client and some things that are expected of the coach. And the coach is 128 00:09:45.040 --> 00:09:49.360 there to make sure that the person, the things the clients are supposed to do are actually getting done. 129 00:09:49.360 --> 00:09:52.480 And so fundamentally, you want the client to have to do as little as possible because if you have 130 00:09:52.480 --> 00:09:57.040 them have to fill out a 17-questionaire form once a week, likely that they do it is very low. 131 00:09:57.040 --> 00:10:02.080 They are not us. They actually don't care about things. And so it has to be as minimally 132 00:10:02.080 --> 00:10:06.640 invasive as possible. I would even go so far as to say, you don't even need the special 133 00:10:07.680 --> 00:10:12.240 apps and like, like, you don't need to worry about that stuff because you can just text people. 134 00:10:12.880 --> 00:10:17.440 Like, you don't have to be fancy with this because that is the that's the vehicle that 135 00:10:17.440 --> 00:10:23.760 the customer is most accustomed to communicating with. And so all you have to do is be structured 136 00:10:23.760 --> 00:10:27.440 on the back end so that you know that what they're required to do is text you every day, 137 00:10:27.440 --> 00:10:29.760 they're mourning weight and the supplements that they were supposed to be taking. 138 00:10:30.560 --> 00:10:35.360 And then, boom, by the way, tie in some supplement revenue into your business because right now, 139 00:10:35.360 --> 00:10:40.160 supplements are up 30% as a category. People want to buy products. I have them to do that. They're 140 00:10:40.160 --> 00:10:43.200 doing it anyways. They might as well do it for you, especially from a recommendation from an 141 00:10:43.200 --> 00:10:46.800 authority. So have them send their weight. And the reason you want to do it daily is for a couple 142 00:10:46.800 --> 00:10:51.840 of reasons. One is it keeps them honest, right? Because if they only weigh in weekly, one, you have 143 00:10:51.840 --> 00:10:55.680 massive variability from week to week from way out to way into way. Because if they weigh in the 144 00:10:55.680 --> 00:10:59.600 morning or the afternoon or they drink glass of water, that can be super varied. But they always 145 00:10:59.600 --> 00:11:03.760 do it the first thing the morning, you know, after they pee, it's getting even out and you actually 146 00:11:03.760 --> 00:11:07.600 have way better data. That's number one. But from a psychological standpoint, they know that if 147 00:11:07.600 --> 00:11:10.960 they're looking at the biggest sleeve of Oreos when they're hungry at night and they know they have 148 00:11:11.040 --> 00:11:13.840 to weigh in the next morning, even though calories and fat loss don't work that way, 149 00:11:14.480 --> 00:11:19.200 they are, as a general population, going to not do it or be less likely to eat the whole sleeve, 150 00:11:19.200 --> 00:11:23.920 maybe eat one or two, knowing that they can't get away with it because they're coaches to see 151 00:11:23.920 --> 00:11:28.480 their weight in the morning. Now, for you as the coach, because that's what they're required to do, 152 00:11:28.480 --> 00:11:32.480 all you need to do is acknowledge that you received it on two of the days of the week. 153 00:11:32.480 --> 00:11:36.320 And then the other three days of the week, you want to be proactive in your reach out to them 154 00:11:36.320 --> 00:11:40.240 and ask a specifically catered question, right? Now, what are the three aspects that we want to 155 00:11:40.240 --> 00:11:45.600 look at with a client? Typically, you're going to be looking at their fitness, so you're going to 156 00:11:45.600 --> 00:11:51.760 say, hey, how did we do this last week on our workouts? And remember, workouts has defined in remote 157 00:11:51.760 --> 00:11:55.920 setting is movement. If you really want to have like long-term, sustainable, like, health 158 00:11:55.920 --> 00:12:00.560 lot weight loss interventions, getting someone to walk for 30 minutes away is probably better than them 159 00:12:00.560 --> 00:12:05.840 over a four-year-old time than anything else. So don't be curious about this. It's just getting 160 00:12:05.920 --> 00:12:11.120 them to move. So asking whether they actually did the thing they committed. That's number one. 161 00:12:11.120 --> 00:12:15.040 The second time you'll reach out that week, maybe it's one state as a matter, we have our clients 162 00:12:15.040 --> 00:12:18.800 separating out of a client's attitude. Monday, Wednesday, Friday, Tuesday, Thursday, Saturday, 163 00:12:18.800 --> 00:12:24.800 that way decreases their reach out load per day. Yeah. The second reach out is going to be about 164 00:12:24.800 --> 00:12:28.320 nutrition, right? So it's going to be like, hey, how you doing with your food, right? Are you eating 165 00:12:28.320 --> 00:12:32.160 10 bags of warriors every day? You can finish off a bag of chips? Are we relatively staying 166 00:12:32.240 --> 00:12:36.720 to where we need to bid? That's the second piece. The third, you know, reach out is going to be 167 00:12:36.720 --> 00:12:40.400 about their energy, their headspace, their sleep, kind of how they're doing it overall to make 168 00:12:40.400 --> 00:12:42.800 sure that they know that you're a human being and that you know that they're a human being. 169 00:12:43.440 --> 00:12:46.800 And so if you, you know, you don't want to ask the same question, right? You've got to be a person. 170 00:12:46.800 --> 00:12:52.000 But if you ask the questions along those lines that gives you very easy fodder to work off of, 171 00:12:52.000 --> 00:12:56.400 to create an organic conversation that allows you to have a one-on-one relationship with a client's 172 00:12:56.400 --> 00:13:00.960 at scale. If we're to summarize this overall blueprint of, I suppose that's called a 173 00:13:00.960 --> 00:13:05.520 keep-in-the-business going. We're talking. Cut back the costs where you can, you know, 174 00:13:05.520 --> 00:13:11.440 stem the tides of your pauses and cancellations and fill that in with obviously a certain map, 175 00:13:11.440 --> 00:13:15.440 it's going to be online workouts, but you're going to have to dedicate time to keep that one-to-one, 176 00:13:15.440 --> 00:13:20.400 one-to-money relationships going with the goal to keep people accountable, keep them engaged with 177 00:13:20.400 --> 00:13:23.840 you. And in the end of the day, that's going to be worth it for them because they're still going to 178 00:13:23.840 --> 00:13:27.680 stay on their same path for their fitness goals. So trainers, so if you're looking at your staff, 179 00:13:27.680 --> 00:13:33.680 right, and you have a front desk person and you've got two trainers and you. If you were to 180 00:13:33.680 --> 00:13:36.400 allocate the way you're attempting to go, you probably don't need the front desk person. 181 00:13:37.280 --> 00:13:41.360 I'm just giving you real, like, let's be real. Okay, you probably don't need that because there's 182 00:13:41.360 --> 00:13:47.760 no front desk, right? They're not greeting everyone. So, number one, now the trainers, they can do split 183 00:13:47.760 --> 00:13:49.920 shifts, they can do four workouts, the rest of the morning, the other part of the week, the 184 00:13:49.920 --> 00:13:55.760 afternoon, that works. They both should be, if you want to know relative client load for remote, 185 00:13:55.760 --> 00:14:01.600 it's about 75 clients, it's about a full-time remote client for a coach. If they have 75 clients, 186 00:14:01.600 --> 00:14:05.600 it should take them about three hours a day to do all of their manual reach outs and responses. 187 00:14:06.640 --> 00:14:12.320 Beyond that, the remainder of their day should be on cold reach outs, all right? That means messaging, 188 00:14:12.320 --> 00:14:17.360 people making posts, responding people who comment or like, and asking them if they know anybody who 189 00:14:17.360 --> 00:14:22.000 be interested in not gaining the quarantine 15. And so when they do that, they become revenue 190 00:14:22.000 --> 00:14:27.280 generators, not just revenue maintainers or preservers. And so they're actively maintaining 191 00:14:27.280 --> 00:14:31.120 revenue for you by keeping your assistant customers happy, delivering a higher level of service. 192 00:14:31.120 --> 00:14:35.040 And this is something that every gym owner has to really, truly believe in their gut. So, 193 00:14:35.040 --> 00:14:39.200 they don't feel like they're taking advantage of people. Like, you are providing a one-on-one solution 194 00:14:39.200 --> 00:14:43.360 where you did not have a one-on-one solution before this and you're doing it at a fraction of what 195 00:14:43.360 --> 00:14:47.840 one-on-one coaching would typically cause. You need to make sure that from a maintaining of your gym 196 00:14:47.840 --> 00:14:52.160 membership, communication needs to stay high. So if you're used to, you know, sending out a weekly 197 00:14:52.160 --> 00:14:57.600 email, you got to be thinking about daily. Not necessarily just emails, but texts, Facebook 198 00:14:57.600 --> 00:15:01.360 group posts, and you have to be more active on social media because everyone's on their right. 199 00:15:01.360 --> 00:15:05.440 Everyone's bored at home cooked up, waiting for people to respond to their comments and threats, 200 00:15:05.440 --> 00:15:08.960 right? And so you're going to have to be more active with that. That was the gym owner, 201 00:15:08.960 --> 00:15:14.640 right? As the proprietor, your primary goal is revenue generation. That is what you need to be doing. 202 00:15:14.880 --> 00:15:21.600 Hey guys, love that you're listening to the podcast. If you ever want to have the video version 203 00:15:21.600 --> 00:15:26.000 of this, which usually has more facts, more visuals, more graphs, you know, drawn out stuff, 204 00:15:26.000 --> 00:15:29.920 sometimes it can help hit the brain centers in different ways. You can check out my YouTube 205 00:15:29.920 --> 00:15:33.840 channel. It's absolutely free to check that out if that's what you are into. And if not, 206 00:15:33.840 --> 00:15:34.640 keep enjoying the show. 207 00:15:37.520 --> 00:15:41.120 And so the last thing you want to do is stop sales and marketing for a variety of reasons. 208 00:15:41.120 --> 00:15:45.280 One, the moment you stop acquiring new customers is the moment you start the ticking time clock 209 00:15:45.280 --> 00:15:48.160 of when you're going to die, right? Because the Trishon is going to happen. No matter what, 210 00:15:48.160 --> 00:15:51.600 even when you're in person, the Trishon happens. But if you're not filling it back up, 211 00:15:52.800 --> 00:15:57.120 eventually your gym will die. And you don't know how long this is going to last. So number one, 212 00:15:57.120 --> 00:16:01.280 you don't want to stop sales and marketing. Number two, we're in a place right now where 213 00:16:01.280 --> 00:16:09.200 remote is selling like hot kicks and the vast majority of people hate change more than they hate 214 00:16:09.200 --> 00:16:14.080 losing and would rather just lose. Because they were so burned out of being gym owners 215 00:16:14.080 --> 00:16:18.720 that this gave them a perfectly acceptable experience, right? They could look at their parents, 216 00:16:18.720 --> 00:16:21.840 they could look at their wife, and they're like, you know, I tried my hardest. And everyone's 217 00:16:21.840 --> 00:16:25.840 going to say, you're right, who is going to guess Corona was going to happen? It's not on you. 218 00:16:25.840 --> 00:16:30.080 And so if you want to quit, this is the absolute best opportunity to quit. But if you're not that 219 00:16:30.080 --> 00:16:34.960 person and you want to win, this is how you do it. And you can do it now because the people 220 00:16:35.120 --> 00:16:39.600 actually execute right now, lead costs are 50% off right now because no one's marketing, 221 00:16:39.600 --> 00:16:44.800 especially other gyms in your area. We're talking to top 5% of gym owners are actually even marketing 222 00:16:44.800 --> 00:16:50.400 rate. And here's the good news. If you are the top 5%, guess what happens when half the gyms go 223 00:16:50.400 --> 00:16:53.760 out of business in 90 days, right? Because they only have 14 days of cash flow on hand. 224 00:16:55.200 --> 00:16:58.960 All those members get released back in the marketplace and then you swallow the whole thing back up. 225 00:17:00.320 --> 00:17:04.240 By the end of this, you can reopen your gym and then still have people who stay in a remote 226 00:17:04.240 --> 00:17:07.280 setting because believe it or not, there are a lot of people who actually like working out on 227 00:17:07.280 --> 00:17:11.040 their own convenience and not having to leave and go places, right? And it may actually work better 228 00:17:11.040 --> 00:17:14.800 for your customers and that's okay because it's a higher margin service. And so what happens is 229 00:17:14.800 --> 00:17:20.080 you start to adapt what's called a hydrogen model. You have both remote services and you have in-person 230 00:17:20.080 --> 00:17:24.720 services. And so you have a dual revenue stream and the secondary revenue stream, the remote 231 00:17:24.720 --> 00:17:30.560 revenue stream is not geographically confined and is higher profit. That makes a lot of sense that 232 00:17:30.560 --> 00:17:35.280 I just want to move through the sections here. So I think summarizing on the retention, 233 00:17:35.280 --> 00:17:41.040 like it's actually a very good point that in the time it takes to do a 45 minutes one-on-one 234 00:17:41.040 --> 00:17:48.160 training session, but maybe do 45 reach outs or one-on-one communications and really think about 235 00:17:48.160 --> 00:17:51.680 time and how you're paying your trainers and what value you can get out of them when they're not 236 00:17:51.680 --> 00:17:58.720 flat out doing this training. Moving in to the sales and marketing, a lot of businesses now 237 00:17:58.800 --> 00:18:02.640 probably are shutting down their sales costs, shutting down their marketing costs, but getting into 238 00:18:02.640 --> 00:18:08.000 the mindset of actually growing and not just grow to grow, but grow to survive because there's 239 00:18:08.000 --> 00:18:13.600 definitely going to be some iteration. That's a really important point. But I think it kind of comes 240 00:18:13.600 --> 00:18:19.200 to the next question that I have, which is, you know, you would be very well-known in the industry 241 00:18:19.200 --> 00:18:26.160 for constructing sales pitches, constructing offers, you know, we often associate you with 242 00:18:26.160 --> 00:18:31.680 high value, high price, introductory offers, all this kind of stuff. What is the playbook now? 243 00:18:33.440 --> 00:18:42.480 Prosperity doctrine is grow, thrive, etc. Like transform all of that works in every type of normal 244 00:18:42.480 --> 00:18:48.080 economy. As soon as you're in a recessionary economy, the buying behavior flips and it goes through 245 00:18:48.080 --> 00:18:52.720 preservation. If you look at any of the advertisements we have right now, I'm not talking about 246 00:18:52.720 --> 00:18:58.880 failure gym. I'm talking about saving and surviving, etc. Because right now surviving is what people 247 00:18:58.880 --> 00:19:05.360 believe is possible. And what's interesting is in a recessionary economy, the buying demand on survival 248 00:19:05.360 --> 00:19:12.080 is twice as high as the desire to buy for growth is during a normal economy, right? So the actual 249 00:19:12.080 --> 00:19:18.880 buying demand is four to one for preservation in a recessionary economy versus two to one for growth 250 00:19:18.880 --> 00:19:22.320 in a normal economy. So if you flip your language, you'll be able to convert more people. 251 00:19:22.320 --> 00:19:28.160 System one. Number two, in terms of constructing the offer, you still absolutely should be selling, 252 00:19:28.160 --> 00:19:31.920 I would say I'm going to put quotes around this, higher ticket up front. Now higher ticket 253 00:19:31.920 --> 00:19:36.560 in a recessionary economy right now, what we're seeing is $2.99 is a price point that's converting 254 00:19:36.560 --> 00:19:42.240 to cold traffic in a local market for remote services. And so we present a very simple AB offer 255 00:19:43.200 --> 00:19:47.280 for someone to do, you know, a 21 day or 28 day, it doesn't really matter, but a front end 256 00:19:47.280 --> 00:19:54.640 challenge of some sort. And then with that, $2.99, or you can become a member today. Very simple. 257 00:19:55.440 --> 00:19:59.520 And the down sell for that is just simply starting them on a weekly billing cadence, 258 00:19:59.520 --> 00:20:04.880 so you start them at $49 a week or $39 a week. And that's very swallable for a lot of people, 259 00:20:04.880 --> 00:20:09.760 and it's a lower trust environment. So it allows you to gain their trust. You don't want to stop 260 00:20:09.760 --> 00:20:13.120 at the first sale. So what you were saying earlier about like choreographing sales experiences, 261 00:20:13.120 --> 00:20:17.440 this is definitely what we've been kind of known for, is that there's three sales that should happen. 262 00:20:17.440 --> 00:20:21.520 And this happens with whether you're in a recessionary economy or not, you should always build the 263 00:20:21.520 --> 00:20:25.120 mouse trap so that you can maximize the value to provide and then also the value that you can get 264 00:20:25.120 --> 00:20:29.040 for the business. And so the first is going to be your service sale. This is a front end service 265 00:20:29.040 --> 00:20:34.320 sale. So that's what I just said, the $2.99 versus the down sell for, you know, $49.30 a bill weekly. 266 00:20:35.280 --> 00:20:40.080 The second sale is going to happen in 24 to 48 hours later, where you go through nutrition 267 00:20:40.080 --> 00:20:45.600 consultation. We use this as an onboarding experience to provide more value, walk them through, 268 00:20:45.600 --> 00:20:49.200 make sure they understand everything who their coaches are, where the groups are, where they contact 269 00:20:49.200 --> 00:20:53.840 for billing, blah, blah, blah, blah. Teaching them how to be a client, but also providing value 270 00:20:53.840 --> 00:20:57.200 in their nutrition, especially right now in quarantine, people are going to want to know what they 271 00:20:57.200 --> 00:21:02.720 can do within their current environment. This is a point where you then also have a soft 272 00:21:02.720 --> 00:21:08.000 recommendation for supplements. For us, we average $200 per head in supplement sales and most 273 00:21:08.000 --> 00:21:13.520 guys make a 40% commission on what they sound something. So you're talking $80 to $100 a head 274 00:21:13.520 --> 00:21:19.520 in profit per person in additional within the first 24 to 48 hours. Now that alone can typically 275 00:21:19.520 --> 00:21:24.880 cover the cost of acquisitions for a customer, which means your front end service revenue was 100% 276 00:21:24.880 --> 00:21:29.120 gravy, right? It's profit on top. And then on top of that, so we've got in the first two sales, 277 00:21:29.120 --> 00:21:34.240 the service sale and nutrition sale. And the third sale should happen at day 14, all right? So 278 00:21:34.320 --> 00:21:37.040 whether you're doing a 28 day, this would be halfway through if you're doing 21 day, it'd be two 279 00:21:37.040 --> 00:21:41.360 weeks in. And so at this point, you should have gained a certain amount of trust you should have 280 00:21:41.360 --> 00:21:45.600 already had at least seven or eight exchanges with this person, one on one, keeping them on track, 281 00:21:45.600 --> 00:21:49.440 makes sure they're doing a good job. And at this point, you should be able to talk to them in a real 282 00:21:49.440 --> 00:21:54.240 way with true rapport. You're going to talk about their long-term goals. And at that point, you can 283 00:21:54.240 --> 00:21:59.200 sell at the real price points that you're accustomed to selling to. I'm even get repaid, you know, 284 00:21:59.200 --> 00:22:04.480 $2,000 plus sales. Now remember, this is my recommendation to you is continue to sell in the 285 00:22:04.480 --> 00:22:07.840 remote setting. You don't need to sell for when they come back because then you're still selling 286 00:22:07.840 --> 00:22:12.000 in this advantage. And you don't know what's going to happen. So continue to sell for the one on 287 00:22:12.000 --> 00:22:17.600 remote experience that this person has already enjoyed and has got results from. I get it. So 288 00:22:17.600 --> 00:22:21.360 listening to you there, like, I see how you've changed the value proposition. So I see how you've 289 00:22:21.360 --> 00:22:27.600 changed it from survival or, you know, avoiding going backwards rather than making massive games. 290 00:22:28.400 --> 00:22:32.640 But you're still talking big numbers in terms of what you can earn in revenue. 291 00:22:33.840 --> 00:22:38.080 Before this, our guys were selling $2,000 to $3,000 upfront on the first visit. So this is 292 00:22:38.080 --> 00:22:42.720 significantly less. So typically, what we would do is a diagnostic selling process at the first 293 00:22:42.720 --> 00:22:46.320 visit, which is actually what that last sell at us described where you're talking about the long-term 294 00:22:46.320 --> 00:22:50.480 goal and then selling a package to the goal. Right? So it's like, hey, you know, if you want to lose 295 00:22:50.480 --> 00:22:55.440 40 pounds, it's going to take us 20 weeks to get there. And then another maybe 10 to 15 weeks to 296 00:22:55.440 --> 00:23:01.200 maintain it. Feed you back up to a higher calorie intake so that we can maintain that lower body weight 297 00:23:01.200 --> 00:23:05.840 at a higher calorie intake. So you basically feed them back up. And so that total package might be, 298 00:23:05.840 --> 00:23:12.240 let's say, 30 or 40 weeks, right? And so when you sell 30 weeks at $999, you have a $3,000 package. 299 00:23:12.240 --> 00:23:16.800 You can say, hey, you can prepay today and save 20%. Now you're at $2,400. The person says, no, 300 00:23:16.800 --> 00:23:20.160 you say, cool, let's do half down. Let's do 1200. Can you do that? And then weekly payments, you 301 00:23:20.160 --> 00:23:24.640 spread it out. They can't do that. You do 600, then spread it out. And so you keep working your 302 00:23:24.640 --> 00:23:29.360 way down. And the nice piece is that if you have a high pricing, by the time you get to 600 bucks 303 00:23:29.360 --> 00:23:35.680 after saying $4,000, the people who are less skilled, you'll be able to get yeses very, very 304 00:23:35.680 --> 00:23:39.120 frequently. And so if anyone who's listening to this is like, man, I can barely close a $99 305 00:23:40.000 --> 00:23:44.000 membership, it's because of your value problem. Straight up, it's not because your market is weak, 306 00:23:44.000 --> 00:23:48.720 it's not because you lack the skill of closing high ticket. That's all it is. And you need to understand 307 00:23:48.720 --> 00:23:57.440 how to provide value to a person in that setting. So I think maybe to round off for somebody who's 308 00:23:57.440 --> 00:24:02.240 in the situation where they're not used to selling over the phone. And you know, they've probably 309 00:24:02.240 --> 00:24:06.160 running a business that people have been walking into and having good experience and maybe they're 310 00:24:06.160 --> 00:24:12.320 struggling at the $99 price point. What's the fastest way they can figure out how to do this over the 311 00:24:12.320 --> 00:24:19.280 phone? There is no fast way of doing it. I mean, fast yes, there is, but there's no way of like 312 00:24:19.280 --> 00:24:24.080 homeworking your way through it. You can only watch trainings for so long at a certain point, 313 00:24:24.080 --> 00:24:28.160 you need to dive in the water, you need to step in the ring and get punched in the face. You can 314 00:24:28.160 --> 00:24:33.520 watch all the UFC you want, it doesn't mean you can fight. You have to, and what we've seen is 25 315 00:24:33.520 --> 00:24:38.400 to 30 exposures to a stressor, which is general stress theory too. It's not just sales, right? 316 00:24:39.040 --> 00:24:42.960 Gets people basically desensitized to the stress associated with a new selling environment. 317 00:24:44.000 --> 00:24:48.880 After 25 sales, what we've seen is our gym one or 25 sales opportunities, our gym owners are 318 00:24:48.880 --> 00:24:53.360 able to convert at the same numbers they were closing in person, right? It just basically takes 25 319 00:24:53.360 --> 00:24:59.120 attempts of sucking to kind of figure out the flow of how the script works. I can give you the 320 00:24:59.120 --> 00:25:04.960 words to say right now, but it's not about the words. Words are 20% of it. 80% of is how you say the 321 00:25:04.960 --> 00:25:10.160 words. It's the tonality and the frame you can control in the sale. I'm going to give you two 322 00:25:10.160 --> 00:25:14.320 examples really quickly because I think it would drive the point home. If I said before we started 323 00:25:14.320 --> 00:25:19.920 the sale, do you need to talk to your husband before we get going and make any decisions? 324 00:25:20.560 --> 00:25:25.520 By asking that question, the way I just did, you're going to think, I should say yes to this. 325 00:25:26.560 --> 00:25:31.760 If I ask the same question and I said, you don't need to talk to your husband or anything before 326 00:25:31.760 --> 00:25:36.480 we get started, you're going to think, no, I don't need to talk to my husband. I said the same 327 00:25:36.480 --> 00:25:42.080 words more or less, right? But the tonality will dictate what the response is. And so you can get 328 00:25:42.080 --> 00:25:47.120 the words, but how you say the words matters more than the words themselves. I'm sure you've maybe 329 00:25:47.120 --> 00:25:55.120 heard the same example of like, what are you doing versus what are you doing versus what are you 330 00:25:55.120 --> 00:26:01.520 doing? All of those things are different meanings to the same sentence. And so learning how to 331 00:26:01.520 --> 00:26:05.920 inflect your voice, I know this sounds silly, but like in phone sales, you don't have the luxury 332 00:26:05.920 --> 00:26:10.560 of having your in-person body language, which allows people who are less skilled to be able to 333 00:26:10.560 --> 00:26:15.840 get away with shitier sales. And so selling in a new environment creates more discipline sales 334 00:26:15.840 --> 00:26:21.120 person. The fun note about this is that when you sell over the phone, it tends to be less tiring 335 00:26:21.120 --> 00:26:26.640 than in person, which is one of the advantages. You can take a higher volume of sales per day over 336 00:26:26.640 --> 00:26:30.960 the phone without getting exhausted. I think the thing will take away from that is the 25. 337 00:26:32.000 --> 00:26:37.520 Everyone has a list and really just got to start working it. And trial and error is probably 338 00:26:37.520 --> 00:26:41.120 the best way to actually get moving, but it's going to take a little bit of resilience to actually 339 00:26:41.120 --> 00:26:44.880 start doing it before you figure out the best about it. It's like, what's the expectation? 340 00:26:44.880 --> 00:26:48.320 You know, you have a client who comes in and they watch some squat videos and then they come in 341 00:26:48.320 --> 00:26:51.760 and they try to squat and it doesn't look right. They're like, ah, squatting is not for me. 342 00:26:52.400 --> 00:26:57.040 You know what I mean? Like, of course, of course you suck at phone sales. You've never done it before. 343 00:26:57.840 --> 00:27:01.760 Why would you think you'd be good? You think after 10 attempts at something, you've only spent five 344 00:27:01.760 --> 00:27:05.520 hours trying to do a skill that you're going to be world-class at a skill from guys who have 345 00:27:05.520 --> 00:27:10.080 4,000 hours over the phone. Sometimes it's unrealistic expectations of acquiring a skill. 346 00:27:10.080 --> 00:27:14.880 That being said, it is 100% the skill you have to acquire in order to survive. You just have to 347 00:27:14.880 --> 00:27:20.880 toughen up because you can't get new people without selling over the phone right now. So it's like, 348 00:27:20.880 --> 00:27:24.000 what are you going to do? You just got to confront it. You just got to get ahead in the face and just 349 00:27:24.000 --> 00:27:29.440 keep moving. That's a good point. Okay, the last topic for a couple of minutes is about the future. 350 00:27:29.440 --> 00:27:36.320 So what do you see fixed months time or whenever that is when doors start to open again? 351 00:27:37.120 --> 00:27:40.560 What's a fitness business going to look like? How much this is going to be digital? How much 352 00:27:40.560 --> 00:27:45.680 is going to be in person? What's going to happen? Great question. I don't have the magic ball, 353 00:27:45.680 --> 00:27:49.200 but if I were to be a betting person, which I guess I am because we're all in business, 354 00:27:49.760 --> 00:27:54.240 one, I think that this will fundamentally change the way that people consume fitness with technology. 355 00:27:54.240 --> 00:27:58.320 I think this will also fundamentally shift the way people purchase. The gym owners who learn how to 356 00:27:58.320 --> 00:28:01.920 sell over the phone will realize that selling over the phone is actually a more efficient way to sell. 357 00:28:01.920 --> 00:28:05.680 It is a more efficient way to sell. It's harder. But once you learn the skill, you can actually convert 358 00:28:05.680 --> 00:28:11.200 a higher percentage of your leads no matter what. Number two, there will be some people who are going 359 00:28:11.200 --> 00:28:17.360 to stay online. They realize they've never had they got forced to overcome the hump of learning 360 00:28:17.440 --> 00:28:21.680 the new technology. But now that they're doing it, they're like, you know what? I like working out 361 00:28:21.680 --> 00:28:25.280 from home. This is actually more convenient for me, right? And convenience will always win. 362 00:28:26.320 --> 00:28:29.520 That being said, there's still going to be a big explosion of people who are crawling out of 363 00:28:29.520 --> 00:28:33.680 their skin wanting to go back to the gym. And there's going to be far fewer gyms that are alive 364 00:28:33.680 --> 00:28:39.040 when this opens up. So I think that the demand for fitness services in person will still outmatch the 365 00:28:39.040 --> 00:28:44.400 supply when this turns back on. I also don't think it's going to be as much of a boom as people 366 00:28:44.400 --> 00:28:48.160 expect because I think most countries are not going to turn their counties back on like a light 367 00:28:48.160 --> 00:28:51.920 switch. I think it's going to be more like a dimmer switch. It's going to be certain areas for 368 00:28:51.920 --> 00:28:56.160 certain people under certain ages for certain types of businesses. And gyms are going to be one of 369 00:28:56.160 --> 00:29:01.040 the last ones because we're not essential and we're highly contagious. So we're going to have to 370 00:29:01.040 --> 00:29:05.680 deal with this in my opinion for the foreseeable future. And putting your head in the sand and wishing 371 00:29:05.680 --> 00:29:09.760 and waiting for Superman to come is not going to solve the problem. If you're not doing something 372 00:29:09.760 --> 00:29:14.480 right now, you have to because you won't make it long enough to get to the other side in line. 373 00:29:15.040 --> 00:29:19.120 Sounds like things we're learning now, the skills like phone sales, 374 00:29:19.760 --> 00:29:23.920 an online relationship are the things that are going to be part of every fitness business 375 00:29:23.920 --> 00:29:28.320 for a long time. I mean it's my opinion and nine months ago we started something called the hybrid 376 00:29:28.320 --> 00:29:33.280 gym program which is basically a spouse of this exact thing which is providing one-on-one 377 00:29:33.280 --> 00:29:37.520 accountability services for your members and using it as an upset for an additional $49 378 00:29:38.000 --> 00:29:43.040 week. And so what that did was allow boot camps to boot camps, crossfits, etc. to charge a 379 00:29:43.040 --> 00:29:49.200 $100 a week, $400 to $500 a month for the same services and adding a high 380 00:29:50.000 --> 00:29:54.880 high margin service on top to maximize profit and retain customers for a longer period of time 381 00:29:54.880 --> 00:29:59.200 than group training does on its own. Now that you build a construct and infrastructure, you learn 382 00:29:59.200 --> 00:30:03.040 how to fulfill a remote setting 101, it opens up your geography so you actually can pull from 383 00:30:03.120 --> 00:30:07.840 other areas such as one. Two, the people who do come back, you can add this as a bolt-on service 384 00:30:07.840 --> 00:30:12.080 on top of your existing membership so you can drive more profit. And then third, we're going to have 385 00:30:12.080 --> 00:30:16.560 some people just going to prefer to do that and you just keep them at that $200 a month in a high 386 00:30:16.560 --> 00:30:24.880 profit service. Yeah yeah, make that a sense. We've covered an absolute ton of ground there today. 387 00:30:25.520 --> 00:30:29.440 And just my last question before we finish is, you know what's the biggest lesson you've learned 388 00:30:29.520 --> 00:30:33.920 in the last two or three weeks? I don't know if it's a lesson but a reminder, winners win. 389 00:30:34.720 --> 00:30:38.880 Right now, if you were listening to this and you're not sure what to do, that includes you 390 00:30:39.680 --> 00:30:44.240 and the only thing that separates people who don't win from the boo-doo is the ones who try. 391 00:30:44.240 --> 00:30:49.440 And so as long as you continue to try, you can't lose because that's really what it comes down to. 392 00:30:50.400 --> 00:30:55.120 I wish I had something sexier for you but that's just what it is. And if you see any person 393 00:30:55.120 --> 00:30:58.960 who's succeeding right now, who's a gym owner and there are tons right now, we're killing it. 394 00:30:58.960 --> 00:31:04.080 It means you can too. Okay, thanks from all C, author of Gym Launch Secrets. 395 00:31:04.080 --> 00:31:07.840 Everybody read the book. Thank you very much for coming on the show. 396 00:31:08.480 --> 00:31:17.120 Appreciate it. Thanks for being.