WEBVTT

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There are a few things that every founder has to learn

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at a basic level.

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You have to know the core business.

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You have to know how to get customers.

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You have to know how to deliver customers.

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Just about everything else you can outsource,

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but those two things are core to every business.

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And so if you don't know how to get new customers,

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you need to fix that.

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One of your something insane, every six seconds,

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acquisition.com or for the company's get a new lead.

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So I'm gonna show you how to get new customers

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so fast it feels illegal.

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And just while I was saying that,

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we got one lead in the first second,

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one it, second six, a third at second 12.

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And we'll get one in just right now.

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And that's exactly what I'm gonna show you how to do.

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So number one, every business wants more leads,

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but none of them wanna give good stuff away for free.

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And so my favorite marketing strategy

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for getting tons of leads is step one,

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look at what other people are charging for.

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Step two, look at the hard costs of what it would cost

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for you to deliver it.

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Step three, give that thing away for free.

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Step four, see how many leads you get.

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Step five, see how many you convert.

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And then the hard cost divided by the percentage conversion

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equals how much it costs to get a customer.

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Don't worry, I'll walk you through the math.

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So let's say that you have a competitor

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who's willing to do some sort of SEO service, whatever.

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Now SEO services will typically have multiple components to it.

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And most businesses that either have products or services

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have many things that if you were to go zoom in on it,

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you could do for somebody, you could up,

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you could compress files on someone's page

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to increase the page, the page lead time,

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you could change headlines around, you could redesign it,

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you could fix the metadata so that it ranks differently,

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whatever, you could create link backs.

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There's a number of different things that you could do.

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And so the question is, if how many hours, let's say,

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would it take me to add 20 links,

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backlinks from someone else's site to the prospect site?

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Okay, well maybe that would take me, I don't know,

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let's call it an hour.

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All right, now I think you would take less than that,

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but let's just say it's an hour.

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And let's say that it's an hour of one of your employees' time

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and you pay them $25 for that work.

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Okay, the question is, if you trying to just give away

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an assessment or something like that for free,

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which is what everyone else gives away,

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not that many people would be interested.

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And so let's say that you spent $100 to get leads

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with your old way.

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And then you add this new thing that give away for free

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that cost you $25, but all of a sudden,

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you get three times the amount of people

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who want that free thing per dollar of advertising,

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meaning that your new lead cost is $33.

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But for each one of those $33 people,

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we now have to give a $25 thing away.

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But at the end of the day, we still net,

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less cost per lead from $100 to $58.

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And so fundamentally, this is the 101

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of how giving stuff away works.

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Now the 201 version of this is that you want to only give

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the $25 thing away, or $100 thing, or 1,000 other thing,

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depending on the size of the ticket of the thing you sell,

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to qualified customers.

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So it's no longer, oh, you want my SEO backlinks,

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it's, okay, well, I'm only gonna do that.

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If you meet qualification, one, two, three.

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And then at that point, then I can look,

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I can sift through my leads and say,

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oh, why I'm only gonna incur that $25 cost

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on one of the three leads,

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which then brings my average lead cost down

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to probably around $40, right?

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And so this is the idea is that you can give

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something significantly better away for free

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than everyone else does, ideally,

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something that other people actually charge for.

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And when if you really want to be a savage about it,

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which why wouldn't you want to be a savage about it,

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you make it even better than what they have.

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This feeds into one of my favorite business models

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in the entire world, which is look whatever else does,

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make it better, make it free, make money another way.

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And so if you wanted to figure out what this would look like,

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your cost to acquire a customer,

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so you can either break it down to the cost

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for lead that increases, or you break it down

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to the cost per customer.

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Now where this gets extra nasty is that maybe you closed

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one out of five leads before,

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but maybe with this new lead magnet

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where you provide value first,

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you close one out of four of the leads.

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Well, all of a sudden, not only are the leads

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that you're getting cheaper,

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you're also closing a higher percentage of them.

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And so now you have two things

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that help you get even more customers

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from one badass move.

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Now number two, these kind of bets are hard

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for an employee to make, because they're going to be

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coming at you saying like,

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hey, I just want to give away a bunch of money,

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and maybe your gut responses say no,

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but if you were the one who thought of it,

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you would have the authority to do that

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and actually make sure that the math worked.

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And so if you are a marketing founder,

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you want to stay as close to it as possible.

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So one of the stories that I love to think about this

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is my litmus test for knowing if I'm too far away

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from something is that I want to know

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where the bodies are buried.

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And so if I don't know what's wrong in an apartment,

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I don't know what could be better.

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It means that I'm too far away.

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It's the easiest way that I found in my life

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for me to stay in touch at the appropriate level of distance.

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Now, if you are somebody who's an awesome marketer,

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or that's your primary skills, your good at promotion,

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your good at advertising,

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then I have made this mistake before,

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and I've gotten too far away.

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What happens is this distance basically dilutes down

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my marketing skills, and I end up basically having

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an apartment of people that are using their best skill set

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rather than mine.

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And so the business loses the biggest asset it has,

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which is me or you.

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I have been talked to our portfolio founders

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about this specific thing recently.

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And one of them after a long conversation

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was like this has completely changed my outlook,

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which is why I wanted to make this video.

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I told him, your instinct is right.

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I think that traditional setups are dumb.

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He had this particular founder had a team of 18 people

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who were inside of his marketing division.

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And I said to him, right now,

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if you had to get rid of everyone except for two people,

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do you think you could run the advertising for the business?

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And he said, yeah, probably.

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And I said, okay, then it means that the other 16 people

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are just people that we brought on who are here for the ride.

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And so Keith Roblois has this really amazing analogy

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for this that I really like.

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He says, imagine a civil war cannon.

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All right, so you've got your big cannon here.

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And he said, imagine that you've got this big ammo

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of all the cannon balls next to it.

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He said, most people start a business

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and it starts working, right?

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So you start getting customers, you start getting leads, fine.

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Then you say, okay, well, I'll go from five people

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to 20 people and that should forex the size of the business.

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And then of course you find out quickly

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that when you forex head count,

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you don't necessarily forex the business.

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And he said, that's because most people are ammunition.

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And so you still only have one barrel.

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There's only one cannon that's doing the firing.

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We just added potential here.

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He said, but instead what you need to find is more barrels.

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Because if you can double the barrels,

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you can double the rate output.

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And so I see barrels as Keith does, as incredibly rare.

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But they are the ones who move the needle.

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And so I was explaining to this founder

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and this is something that I've,

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it's a mistake that I've made many times in my life

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and it's one that's hard to not make

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because as things grow, more things come up

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and you get further away.

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But it's like you have to make sure

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that you hold onto the things that matter most.

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Like Mr. Beast is still involved

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in the creation of his videos.

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Steve Jobs still approved every final ad

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that went out for Apple or at least so legend says.

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And so I think that the traditional setup

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is for the most part made by corporates

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who aren't founders, who aren't driving output.

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They're just like meeting quarterly earnings.

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They're not really changing the world.

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And so I have put my big kind of words on this,

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fewer, better.

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And what that means is that you're gonna have to back up

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your investment and talent with finances.

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And so what I mean by that is if you were to build

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an apartment and say, okay, I need to hire a few people

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for $75,000 a year, okay, just use it as simple math.

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Well, those may be A players, B players, C players, who knows?

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But an A player may be able to do quite literally

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five times, 10 times the output,

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25 times the output of a B player.

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And so marketing is one of these roles

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that has tremendous leverage.

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And so in thinking about this,

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I think I've changed the way that I see

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building marketing departments phenomenally,

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which is the most similar role in a business

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that I can think of that we have in their portfolio

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is actually a developer.

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So hear me out.

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Developers typically have technical career paths,

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which means that you can be a level one, level two,

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level three, level four, level five, all the way up.

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And as they go up, they make more money.

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And the reason for that is because one amazing developer

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can make something that millions of people see.

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So one of the old legends of Google

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is that there is a particularly amazing coder.

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They had bought some old version of Google Maps

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as an acquisition.

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They kept trying to do it the code.

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And then one really high leverage coder

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remade the entire product over a weekend.

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And then that is ultimately what became the code base

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that we still use today as Google Maps.

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And so one man made that.

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That's how much skill he was able to bring to the table.

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Now, here's where it makes sense from a business perspective.

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That one guy, maybe you have to pay him 10 times more

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than a traditional coder.

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But if that guy can make a million times the output

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of one guy, then it's still an amazing deal.

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And so the thing is that there is outsize returns

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on talent at the top end.

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And there's a reason that the biggest technology companies,

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the biggest companies in the world are in a war for talent.

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I was thinking about this as it relates to marketing

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because in many of the businesses that I've started,

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marketing has been traditionally understaffed

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or overstaffed, rarely appropriately staffed.

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It's understaffed when it's really just me

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and like a couple people.

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And when we do that, it's because I have a ton of skills

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in marketing.

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And so we can get away with very few people.

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On the flip side, when I get too far away,

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I usually bring someone in and they just bring a lot of bodies.

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But what ends up happening is that the output goes down a lot.

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And so at gym launch, there was a period of time

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where we had 17 people in marketing.

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And once I got rid of the leader, I moved in

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and I took the team from 17 to five and then output tripled.

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And so I say this because the people who have skills

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are the ones that are moving the needle.

258
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And so if I have three guys for 75K

259
00:11:11.520 --> 00:11:14.760
and they create three X output,

260
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one of the really interesting things about knowledge work,

261
00:11:17.720 --> 00:11:20.160
specifically marketing, coding is one of these,

262
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is that the difference between the best guy

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and the worst guy in marketing

264
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isn't like the best guy who can cut a lawn

265
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and the worst guy can cut a lawn.

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The worst guy can cut a lawn,

267
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maybe it takes him an entire day.

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And the best guy, maybe it takes him, you know,

269
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a third of a day because he's sprinting the whole time.

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So maybe you get a three X increase

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because somebody is better.

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And so you'd be limited by how much you'd be able

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to paste someone more for that quality and that speed.

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Whereas with somebody in marketing,

275
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somebody who uses zero marketer versus a 10 marketer,

276
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the 10 marketer might literally be able

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to do 100 million times more the output

278
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because one guy with skill and an iPhone

279
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can get a 100 million view video.

280
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And that kind of leverage is why it pays to pay better.

281
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And so this is something that I've been obsessed with

282
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of late and I'm trying to relay this

283
00:12:14.520 --> 00:12:15.960
to each of the portfolio founders

284
00:12:15.960 --> 00:12:18.960
in making sure that we're keeping the marketing divisions

285
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tight so that we have the highest leverage people

286
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in the highest leverage positions

287
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with incentivized performance so that they

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we access their discretionary effort

289
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to maximize their skill sets.

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Yeah, the most important thing

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00:12:33.480 --> 00:12:35.120
that you can take away from this

292
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is that the best advertisers don't need many people.

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And if you have no one who's in your quote

294
00:12:43.440 --> 00:12:45.880
marketing department, that means you.

295
00:12:45.880 --> 00:12:47.640
And it's a game that you have to learn.

296
00:12:47.640 --> 00:12:49.440
There are a few things that every founder

297
00:12:49.440 --> 00:12:51.240
has to learn at a basic level.

298
00:12:51.240 --> 00:12:52.720
You have to know the core business.

299
00:12:52.720 --> 00:12:54.200
You have to know how to get customers.

300
00:12:54.200 --> 00:12:55.960
You have to know how to deliver customers.

301
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Just about everything else you can outsource

302
00:12:57.520 --> 00:13:00.400
but those two things are core to every business.

303
00:13:00.400 --> 00:13:02.600
And so if you don't know how to get new customers,

304
00:13:02.600 --> 00:13:03.800
you need to fix that.

305
00:13:03.800 --> 00:13:06.320
So the next big one that can get you

306
00:13:06.320 --> 00:13:08.240
more outsized customers than anything else

307
00:13:08.240 --> 00:13:10.520
is entering a specific question,

308
00:13:10.520 --> 00:13:13.960
which I ask is a great thought exercise with our team

309
00:13:14.000 --> 00:13:19.000
is what would it take to be number one?

310
00:13:21.000 --> 00:13:23.000
And another way of asking this question

311
00:13:23.000 --> 00:13:25.880
is what else would have to be true

312
00:13:25.880 --> 00:13:27.480
for us to be number one in our market?

313
00:13:27.480 --> 00:13:30.440
And so when we actually hypothesize about this,

314
00:13:30.440 --> 00:13:32.640
we think, okay, what would it look like

315
00:13:32.640 --> 00:13:33.600
for us to be number one?

316
00:13:33.600 --> 00:13:35.000
What else would have to be true?

317
00:13:35.000 --> 00:13:36.720
What else would have to have occurred?

318
00:13:36.720 --> 00:13:38.440
What's interesting about this question

319
00:13:38.440 --> 00:13:42.200
is that it circumvents the traditional incremental thinking.

320
00:13:42.200 --> 00:13:43.320
Meaning instead of saying, okay,

321
00:13:43.320 --> 00:13:44.560
we're just gonna do 10% more,

322
00:13:44.560 --> 00:13:46.520
we're gonna do 10% better, we're gonna do 20% better.

323
00:13:46.520 --> 00:13:49.440
When you start with the end in mind

324
00:13:49.440 --> 00:13:51.600
from a what would it take for us to be number one,

325
00:13:51.600 --> 00:13:53.960
we assume the goal outcome.

326
00:13:53.960 --> 00:13:55.680
And the craze thing about this question

327
00:13:55.680 --> 00:13:58.520
is that you might be 100th the size

328
00:13:58.520 --> 00:14:00.240
of the number one player in the market

329
00:14:00.240 --> 00:14:03.480
but it assumes what it would take to be 100 times bigger

330
00:14:03.480 --> 00:14:06.280
and then it gets reverse engineered into the present.

331
00:14:06.280 --> 00:14:08.480
And so what happens often times

332
00:14:08.480 --> 00:14:11.520
when I ask this question is they usually state

333
00:14:11.600 --> 00:14:14.600
one or two key big things that would have to happen

334
00:14:14.600 --> 00:14:16.560
for the business to be number one.

335
00:14:16.560 --> 00:14:20.760
And then I ask, what would it cost for us to do that?

336
00:14:20.760 --> 00:14:23.240
Do we have the resources in order to make that happen?

337
00:14:23.240 --> 00:14:25.240
And more times than not,

338
00:14:25.240 --> 00:14:27.880
we actually have the resources to make that happen.

339
00:14:27.880 --> 00:14:29.400
Then the next actual question is

340
00:14:29.400 --> 00:14:31.920
then why are we not putting every one of the resources

341
00:14:31.920 --> 00:14:35.200
we have right now towards making that come true

342
00:14:35.200 --> 00:14:38.320
rather than just continuing on the path that we're on?

343
00:14:38.320 --> 00:14:41.040
And so this is an order of magnitude increase

344
00:14:41.040 --> 00:14:42.560
in terms of business growth

345
00:14:42.560 --> 00:14:45.960
and ultimately what generates the most leads and customers.

346
00:14:45.960 --> 00:14:49.800
And so when I asked myself this question years ago,

347
00:14:49.800 --> 00:14:51.680
it was what would it take for me

348
00:14:51.680 --> 00:14:54.280
to be the number one business channel, right?

349
00:14:54.280 --> 00:14:55.800
What would it take for that to happen?

350
00:14:55.800 --> 00:14:59.120
Now, the question beyond that was what would it take for us

351
00:14:59.120 --> 00:15:01.040
to be able to have one of the best investment firms

352
00:15:01.040 --> 00:15:01.880
in the world?

353
00:15:01.880 --> 00:15:03.520
And I was like, well, I would have to have

354
00:15:03.520 --> 00:15:05.320
many, many, many more years of experience.

355
00:15:05.320 --> 00:15:06.560
I was like, I don't know if I can do that.

356
00:15:06.560 --> 00:15:08.080
I was like, okay, that would be harder for,

357
00:15:08.080 --> 00:15:10.840
that would be, I can't make time happen faster.

358
00:15:10.880 --> 00:15:11.720
What else would it take?

359
00:15:11.720 --> 00:15:13.400
And so then it came to the number one,

360
00:15:13.400 --> 00:15:14.120
so I'm gonna cut from there.

361
00:15:14.120 --> 00:15:17.800
So what would it, so then I followed with, okay,

362
00:15:17.800 --> 00:15:20.600
so for me to be the best investor,

363
00:15:20.600 --> 00:15:23.040
then what I would want is the most deal flow.

364
00:15:23.040 --> 00:15:25.520
So what are the different ways of creating deal flow?

365
00:15:25.520 --> 00:15:27.560
One of them is you can just go to broker networks.

366
00:15:27.560 --> 00:15:30.720
So you go to investment bankers, you get them to send you deals

367
00:15:30.720 --> 00:15:32.160
and then you bid on those deals.

368
00:15:32.160 --> 00:15:34.160
But if I want to be the best investor in the world,

369
00:15:34.160 --> 00:15:35.920
then I need deals that only come to me.

370
00:15:35.920 --> 00:15:37.600
I was like, okay, well thankfully,

371
00:15:37.600 --> 00:15:38.800
I'm pretty good at marketing.

372
00:15:38.880 --> 00:15:41.920
And so I was like, what would have to be true

373
00:15:41.920 --> 00:15:44.200
for me to get lots of inbound deal flow?

374
00:15:44.200 --> 00:15:45.160
And I was like, okay, well,

375
00:15:45.160 --> 00:15:47.560
probably building a massive brand around business.

376
00:15:47.560 --> 00:15:50.320
And so then the question was,

377
00:15:50.320 --> 00:15:54.640
how do I build the number one brand business online?

378
00:15:54.640 --> 00:15:57.040
And so it's the series of questions that I asked

379
00:15:57.040 --> 00:15:58.720
and then it was, okay, well,

380
00:15:58.720 --> 00:16:00.800
I should probably start making content around this.

381
00:16:00.800 --> 00:16:02.920
And I should probably write a book

382
00:16:02.920 --> 00:16:05.240
or something that would do really well

383
00:16:05.240 --> 00:16:07.000
that is in the business space,

384
00:16:07.000 --> 00:16:08.560
that business owners would read.

385
00:16:08.560 --> 00:16:10.960
And then think, wow, this guy knows what he's talking about.

386
00:16:10.960 --> 00:16:14.320
And so by doing those things, by publishing the books,

387
00:16:14.320 --> 00:16:15.920
by making the content consistently,

388
00:16:15.920 --> 00:16:18.400
and the moment I realized that that was what it would take,

389
00:16:18.400 --> 00:16:20.800
I basically put all of my resources towards doing that,

390
00:16:20.800 --> 00:16:22.600
despite the fact that in the moment,

391
00:16:22.600 --> 00:16:23.680
it basically meant nothing.

392
00:16:23.680 --> 00:16:25.240
It meant that I had to go write a book.

393
00:16:25.240 --> 00:16:27.040
It meant that I had to start making content.

394
00:16:27.040 --> 00:16:28.960
But I did all of those things because I thought,

395
00:16:28.960 --> 00:16:30.400
for me to be number one,

396
00:16:30.400 --> 00:16:32.280
I need to have proprietary deal flow.

397
00:16:32.280 --> 00:16:33.600
For me to have proprietary deal flow,

398
00:16:33.600 --> 00:16:34.840
I need to have a big business brand.

399
00:16:34.840 --> 00:16:36.080
For me to have a big business brand,

400
00:16:36.080 --> 00:16:37.600
I need to make more content that's better

401
00:16:37.640 --> 00:16:38.440
than everybody else.

402
00:16:38.440 --> 00:16:40.040
And so that's what I'll start doing now.

403
00:16:40.040 --> 00:16:41.880
And that's where I'll allocate my resources.

404
00:16:41.880 --> 00:16:43.720
Even though I could have done a lot of different things,

405
00:16:43.720 --> 00:16:45.400
that was the one that I felt at the time,

406
00:16:45.400 --> 00:16:46.400
we could be the most leverage.

407
00:16:46.400 --> 00:16:48.040
And so far it has worked out.

408
00:16:48.040 --> 00:16:49.640
But asking that type of question,

409
00:16:49.640 --> 00:16:51.320
you don't get to that type of solution

410
00:16:51.320 --> 00:16:53.920
unless you ask the what would it take to be number one.

411
00:16:53.920 --> 00:16:56.480
And then sometimes the answer surprised you

412
00:16:56.480 --> 00:16:58.360
because you do have the resources to do it,

413
00:16:58.360 --> 00:16:59.800
you just haven't yet.

414
00:16:59.800 --> 00:17:01.960
And the reason this question is so powerful

415
00:17:01.960 --> 00:17:03.480
is actually from Stephen Schwartzman.

416
00:17:03.480 --> 00:17:06.120
So in his book or his autobiography,

417
00:17:07.000 --> 00:17:09.360
I think it's what it takes, I think it's what it's called.

418
00:17:09.360 --> 00:17:12.680
He has this really amazing opening couple of chapters.

419
00:17:12.680 --> 00:17:15.120
And he talks about this idea of thinking big.

420
00:17:15.120 --> 00:17:18.880
And he says, building a really big business is hard.

421
00:17:18.880 --> 00:17:20.840
Building a small business is hard.

422
00:17:20.840 --> 00:17:23.840
So basically it's just about as hard to do anything

423
00:17:23.840 --> 00:17:25.320
because hard is a constant.

424
00:17:25.320 --> 00:17:27.800
So you might as well go after something really big

425
00:17:27.800 --> 00:17:30.280
with the equivalent amounts of hardness.

426
00:17:30.280 --> 00:17:32.720
Now we can get into difficulty levels or whatever.

427
00:17:32.720 --> 00:17:36.920
But basically the upside of the incremental increase

428
00:17:36.920 --> 00:17:39.160
in hardness is outsized.

429
00:17:39.160 --> 00:17:41.360
If you want to build a really successful restaurant,

430
00:17:41.360 --> 00:17:42.840
it's going to take you a really long time

431
00:17:42.840 --> 00:17:46.360
if the man it's lots of people and it's a tough business.

432
00:17:46.360 --> 00:17:47.800
And if you want to build one of the top software

433
00:17:47.800 --> 00:17:48.920
companies in the world,

434
00:17:48.920 --> 00:17:51.880
it's also going to take a long time and be really hard.

435
00:17:51.880 --> 00:17:54.520
But one of those could get you into the many billions

436
00:17:54.520 --> 00:17:56.080
and one of them will probably cap it

437
00:17:56.080 --> 00:17:58.160
at a million dollars or $2 million a year.

438
00:17:58.160 --> 00:18:00.280
And so in thinking about that,

439
00:18:00.280 --> 00:18:02.560
both of them required the same internal resources

440
00:18:02.600 --> 00:18:05.160
from you, but very different external resources.

441
00:18:05.160 --> 00:18:06.840
And so it's like you might as well solve

442
00:18:06.840 --> 00:18:07.800
for the biggest thing.

443
00:18:07.800 --> 00:18:10.320
And this is about resourcefulness, not resources.

444
00:18:10.320 --> 00:18:12.320
All right, this next one is huge,

445
00:18:12.320 --> 00:18:16.640
which is pre is greater than post.

446
00:18:16.640 --> 00:18:20.080
Or an ounce of pre is worth a pound of post.

447
00:18:20.080 --> 00:18:23.600
All right, so as I've advertised in many different ways

448
00:18:23.600 --> 00:18:25.840
and many different channels for different industries,

449
00:18:25.840 --> 00:18:29.800
I have seen this consistently be reinforced to me.

450
00:18:29.840 --> 00:18:32.640
What happens for most people is they forget to advertise

451
00:18:32.640 --> 00:18:33.960
and then they try and play catch up

452
00:18:33.960 --> 00:18:35.120
and they hop in front of the camera,

453
00:18:35.120 --> 00:18:36.200
they sit in front of the computer

454
00:18:36.200 --> 00:18:37.560
and they start typing this is out.

455
00:18:37.560 --> 00:18:39.720
And then they hit post, they hit submit,

456
00:18:39.720 --> 00:18:41.760
they run the ad, they post content.

457
00:18:41.760 --> 00:18:45.320
This then gets propagated as the process.

458
00:18:45.320 --> 00:18:47.320
And so they hire more people and then they more or less

459
00:18:47.320 --> 00:18:48.360
do the same thing.

460
00:18:48.360 --> 00:18:52.400
And then when the stuff sucks, they say it will fix it in post.

461
00:18:52.400 --> 00:18:55.360
But the problem is is that post has very low leverage

462
00:18:55.360 --> 00:18:57.040
and very high cost.

463
00:18:57.080 --> 00:19:01.120
Whereas pre has incredibly high leverage in very low cost,

464
00:19:01.120 --> 00:19:02.880
but it just takes more mental work.

465
00:19:02.880 --> 00:19:04.120
And so I'll give you an idea.

466
00:19:04.120 --> 00:19:06.920
An idea for a video, for example,

467
00:19:06.920 --> 00:19:09.760
has tremendous leverage, more leverage

468
00:19:09.760 --> 00:19:11.720
than just about everything else.

469
00:19:11.720 --> 00:19:15.520
If there is a video concept that more people would click

470
00:19:15.520 --> 00:19:19.320
and watch to see, that idea itself,

471
00:19:19.320 --> 00:19:23.280
even poorly executed, will get an order of magnitude

472
00:19:23.280 --> 00:19:26.080
greater amounts of people to watch the content

473
00:19:26.080 --> 00:19:28.400
or watch the ad than otherwise.

474
00:19:28.400 --> 00:19:31.960
And so putting more time into pre is the highest leverage

475
00:19:31.960 --> 00:19:34.320
activity that you can do.

476
00:19:34.320 --> 00:19:37.800
More of my time now, when I make ads, for example,

477
00:19:37.800 --> 00:19:41.360
for school, I will spend on the pre-production.

478
00:19:41.360 --> 00:19:44.000
That will be looking at past ads that performed well,

479
00:19:44.000 --> 00:19:47.080
looking at the hooks that continue to do well,

480
00:19:47.080 --> 00:19:49.600
making sure that we have some props and things like that

481
00:19:49.600 --> 00:19:51.200
that we can use as visual aids.

482
00:19:51.200 --> 00:19:53.280
And then when we actually do the recording,

483
00:19:53.280 --> 00:19:54.120
it's very short.

484
00:19:54.200 --> 00:19:56.280
And the post-production, because all of the work

485
00:19:56.280 --> 00:19:58.720
is already in the video, there is very little

486
00:19:58.720 --> 00:20:00.200
that must be done afterwards.

487
00:20:00.200 --> 00:20:02.720
And so what happens is the rate of progress

488
00:20:02.720 --> 00:20:07.720
and output increases to use a big word tremendously.

489
00:20:08.200 --> 00:20:10.480
The only reason for post-production,

490
00:20:10.480 --> 00:20:15.040
especially in education, is to enhance comprehension,

491
00:20:15.040 --> 00:20:17.880
meaning to make it easier for people to get

492
00:20:17.880 --> 00:20:19.680
with the video is about.

493
00:20:19.680 --> 00:20:22.360
And this is different than an entertainment

494
00:20:22.400 --> 00:20:25.160
where a lot of the emphasis is on post,

495
00:20:25.160 --> 00:20:27.320
but for the vast majority of businesses,

496
00:20:27.320 --> 00:20:29.520
their advertising and marketing comes down

497
00:20:29.520 --> 00:20:32.760
to educating the customer or potential customer.

498
00:20:32.760 --> 00:20:35.600
And if education is the type of advertising you do,

499
00:20:35.600 --> 00:20:37.800
which is what most businesses do,

500
00:20:37.800 --> 00:20:40.640
then you need to put more into,

501
00:20:40.640 --> 00:20:42.480
do people find this interesting?

502
00:20:42.480 --> 00:20:44.560
Can I make it simple rather than,

503
00:20:44.560 --> 00:20:46.920
I'm just gonna hit record and see what happens.

504
00:20:46.920 --> 00:20:49.600
Yeah, and the thing that shifted my perspective on this

505
00:20:49.600 --> 00:20:51.640
was, I think it's called calculus wallop,

506
00:20:51.680 --> 00:20:53.680
but it's this Indian channel,

507
00:20:53.680 --> 00:20:56.360
where there's a guy who's like 20 million subscribers,

508
00:20:56.360 --> 00:20:59.560
and he teaches like physics wallop and calculus

509
00:20:59.560 --> 00:21:00.720
and these different classes.

510
00:21:00.720 --> 00:21:03.400
And his videos get like 10, 20 million views,

511
00:21:03.400 --> 00:21:05.680
just like crazy, crazy numbers.

512
00:21:05.680 --> 00:21:07.880
And it's just a dude and a whiteboard.

513
00:21:07.880 --> 00:21:09.400
And when I saw that, I was like,

514
00:21:09.400 --> 00:21:13.200
I am missing the boat here, like I am doing it all wrong.

515
00:21:13.200 --> 00:21:16.000
And so we have consistently stripped back

516
00:21:16.000 --> 00:21:17.760
more and more of this post-production,

517
00:21:17.760 --> 00:21:19.760
put more and more of it into pre.

518
00:21:19.760 --> 00:21:22.760
So this video, for example, I have notes

519
00:21:22.760 --> 00:21:25.080
rather than just kind of like winging it

520
00:21:25.080 --> 00:21:26.600
and then having the team just like,

521
00:21:26.600 --> 00:21:29.440
cut everything that was not as good out, right?

522
00:21:29.440 --> 00:21:31.560
Instead, it's like, okay, let me be more purposeful

523
00:21:31.560 --> 00:21:32.920
about the points that I wanna hit,

524
00:21:32.920 --> 00:21:35.280
make sure that they actually make sense and sequence.

525
00:21:35.280 --> 00:21:37.880
So that afterwards, they don't have to reorder the video

526
00:21:37.880 --> 00:21:39.200
and then cut out this thing and then say,

527
00:21:39.200 --> 00:21:41.320
could you reset this part, it was unclear.

528
00:21:41.320 --> 00:21:44.360
It's like, I have examples, I have clear language

529
00:21:44.360 --> 00:21:46.040
that I've already thought about ahead of time

530
00:21:46.040 --> 00:21:48.520
so that I can ultimately make a better video for you

531
00:21:48.520 --> 00:21:50.800
and also an easier video for my team

532
00:21:50.800 --> 00:21:54.000
to be able to produce so that we can make more faster.

533
00:21:54.000 --> 00:21:56.640
So this next one is a really high leverage concept

534
00:21:56.640 --> 00:21:59.480
which I overheard this for the first time

535
00:21:59.480 --> 00:22:01.000
from a marketer named Perrybelcher

536
00:22:01.960 --> 00:22:04.560
and it was, I don't think you even use this term,

537
00:22:04.560 --> 00:22:06.480
but it need to believe, all right?

538
00:22:06.480 --> 00:22:10.360
And so need to believe are basically like,

539
00:22:10.360 --> 00:22:12.560
you want the fused amount of need to believe

540
00:22:12.560 --> 00:22:14.640
for a customer to make a purchasing decision.

541
00:22:14.640 --> 00:22:17.120
And so I'll give you a bad example of a business

542
00:22:17.120 --> 00:22:19.200
that I had and then I'll give you a good example.

543
00:22:19.200 --> 00:22:21.720
With prestige labs, one of the difficulties that I had

544
00:22:21.720 --> 00:22:24.200
was that I had to convince someone of two things.

545
00:22:24.200 --> 00:22:26.840
I had to convince gym owners that they should sell supplements.

546
00:22:26.840 --> 00:22:28.440
Not all gym owners want to sell supplements.

547
00:22:28.440 --> 00:22:30.040
Some gym owners are against supplements,

548
00:22:30.040 --> 00:22:31.680
but I had to convince them that selling supplements

549
00:22:31.680 --> 00:22:33.480
was not a bad thing.

550
00:22:33.480 --> 00:22:36.000
Then I had a second thing that I had to convince them of

551
00:22:36.000 --> 00:22:37.760
which is that prestige labs was a supplement

552
00:22:37.760 --> 00:22:39.280
coming that they should use.

553
00:22:39.280 --> 00:22:40.800
And so I had two need to believe

554
00:22:40.800 --> 00:22:43.440
and so it made it a very difficult sale

555
00:22:43.440 --> 00:22:44.920
to get someone because it was just too much,

556
00:22:44.920 --> 00:22:47.720
basically education in too short a period of time.

557
00:22:47.720 --> 00:22:50.600
Now over the long haul, could you do something like that?

558
00:22:50.600 --> 00:22:51.880
Yes, knowing what I know now,

559
00:22:51.880 --> 00:22:53.600
I'd probably have a multi-layered campaign,

560
00:22:53.600 --> 00:22:57.080
one that basically gets the first big decision,

561
00:22:57.080 --> 00:22:58.800
and then a second kind of campaign later

562
00:22:58.800 --> 00:23:00.840
for warmer audience kind of like middle of funnel

563
00:23:00.840 --> 00:23:02.600
that would then convert people into

564
00:23:02.600 --> 00:23:07.160
specifically prestige labs, affiliates or sellers, retailers.

565
00:23:07.160 --> 00:23:09.000
But that's a lot of work and you're definitely

566
00:23:09.000 --> 00:23:11.080
not going to make sales quickly.

567
00:23:11.080 --> 00:23:14.760
And alternative to that is that if you look at most of the,

568
00:23:14.760 --> 00:23:17.800
like real estate investment space, right?

569
00:23:17.800 --> 00:23:21.560
So anybody who has funds, who would invest in real estate,

570
00:23:21.560 --> 00:23:24.040
who flip real estate, who help people flip real estate,

571
00:23:24.040 --> 00:23:25.800
find their first properties, whatever.

572
00:23:27.200 --> 00:23:29.880
There's this need to believe that doesn't really exist

573
00:23:29.880 --> 00:23:32.000
that real estate helps people make money.

574
00:23:32.000 --> 00:23:35.720
Most people generally agree that real estate is an asset class,

575
00:23:35.720 --> 00:23:37.400
many people have made money in real estate.

576
00:23:37.400 --> 00:23:40.320
And so there's just not a lot that has to be believed

577
00:23:40.320 --> 00:23:43.440
for someone to say, okay, well you are good at real estate.

578
00:23:43.440 --> 00:23:46.080
I will buy your thing to help me get good at real estate

579
00:23:46.080 --> 00:23:49.080
and by buying it, it means either I give money to your fund

580
00:23:49.080 --> 00:23:50.120
and then you do it on my behalf

581
00:23:50.120 --> 00:23:53.520
or you help me source deals or whatever it is, right?

582
00:23:53.520 --> 00:23:55.680
And when we think about like the ultimate business

583
00:23:55.680 --> 00:23:58.000
opportunity of all time, which I think is Amazon.

584
00:23:59.000 --> 00:24:02.080
Amazon itself fundamentally had the proposition

585
00:24:02.080 --> 00:24:04.480
to anybody who wanted to sell anything.

586
00:24:04.480 --> 00:24:08.280
All you have to do is upload your product onto our site

587
00:24:08.280 --> 00:24:09.400
and you can make money.

588
00:24:10.320 --> 00:24:13.080
There's almost no, like you don't need to know how to market.

589
00:24:13.080 --> 00:24:14.560
You don't need to know how to sell.

590
00:24:14.560 --> 00:24:16.520
You don't need to handle customer service

591
00:24:16.520 --> 00:24:17.600
or customer support.

592
00:24:17.600 --> 00:24:20.520
They took away every conceivable reason for someone

593
00:24:20.520 --> 00:24:23.080
that they would have to believe in order to be successful.

594
00:24:23.080 --> 00:24:26.080
They were like, you just need to follow this tutorial

595
00:24:26.080 --> 00:24:28.280
and then just upload your product.

596
00:24:28.280 --> 00:24:29.560
Like that's it.

597
00:24:29.560 --> 00:24:32.600
And so as a result, Amazon has made a tremendous amount

598
00:24:32.600 --> 00:24:34.640
of money and so the only real need to believe

599
00:24:34.640 --> 00:24:37.840
is that someone else might buy my product on Amazon

600
00:24:37.840 --> 00:24:40.400
and so people believe that and then they buy.

601
00:24:40.400 --> 00:24:42.120
So it's like they barely even have a need to believe.

602
00:24:42.160 --> 00:24:44.040
It's like a half belief, right?

603
00:24:44.040 --> 00:24:47.880
And so when I think about products and offers,

604
00:24:47.880 --> 00:24:50.480
I think what must a customer believe in order

605
00:24:50.480 --> 00:24:53.360
to make this purchase and do I have multiple humps

606
00:24:53.360 --> 00:24:55.160
or hills that I have to get over?

607
00:24:55.160 --> 00:24:57.680
And ideally, I want you reposition

608
00:24:57.680 --> 00:24:59.920
or repackage the product and offer in such a way

609
00:24:59.920 --> 00:25:01.880
that there's either no beliefs they have to believe

610
00:25:01.880 --> 00:25:03.280
or only one.

611
00:25:03.280 --> 00:25:05.480
And so if you're struggling to get more customers

612
00:25:05.480 --> 00:25:07.720
and you wanna get crazy amounts of customers quickly,

613
00:25:07.720 --> 00:25:08.960
you wanna limit the amount of things

614
00:25:08.960 --> 00:25:11.800
that they need to learn or need to believe in order to buy.

615
00:25:11.800 --> 00:25:13.920
The reason that giving away tons of free stuff

616
00:25:13.920 --> 00:25:15.760
like I mentioned at the very beginning

617
00:25:15.760 --> 00:25:18.480
is powerful is that it will basically move more people

618
00:25:18.480 --> 00:25:20.560
from someone who needs more information

619
00:25:20.560 --> 00:25:22.080
to someone who needs less information.

620
00:25:22.080 --> 00:25:23.920
And so fundamentally this is what branding is

621
00:25:23.920 --> 00:25:25.880
on a large scale is that you're educating

622
00:25:25.880 --> 00:25:27.600
a large percentage of the audience

623
00:25:27.600 --> 00:25:29.080
and conquering some of the need to believe

624
00:25:29.080 --> 00:25:30.840
before they make the purchase.

625
00:25:30.840 --> 00:25:32.800
If you try to go cradle to grave in one move,

626
00:25:32.800 --> 00:25:35.000
you will usually sell a smaller percentage of the marketplace

627
00:25:35.000 --> 00:25:37.160
unless you have figured out how to make

628
00:25:37.160 --> 00:25:39.960
that six inch putt, a six inch putt for everyone

629
00:25:39.960 --> 00:25:41.040
like Amazon has.

630
00:25:41.080 --> 00:25:42.080
Same thing with Uber.

631
00:25:42.080 --> 00:25:44.200
It's like, what do you have to believe

632
00:25:44.200 --> 00:25:45.680
in order to make money on Uber?

633
00:25:45.680 --> 00:25:47.960
You just have to be able to download an app,

634
00:25:47.960 --> 00:25:49.360
you know, upload your driver's license,

635
00:25:49.360 --> 00:25:51.160
not have DUIs or whatever the requirements are

636
00:25:51.160 --> 00:25:52.200
and you have to have a car.

637
00:25:52.200 --> 00:25:54.520
And so as long as you believe that when your phone dings

638
00:25:54.520 --> 00:25:58.320
that you will get paid, it's not a huge hail

639
00:25:58.320 --> 00:26:00.320
that you have to get over in order to make money.

640
00:26:00.320 --> 00:26:02.040
This next one is nasty.

641
00:26:02.040 --> 00:26:06.240
So I am a big fan of split testing, right?

642
00:26:06.240 --> 00:26:08.560
And you've probably seen it with my thumbnails on,

643
00:26:08.560 --> 00:26:10.880
you know, these YouTube videos.

644
00:26:10.880 --> 00:26:13.040
Because fundamentally, why would you not want to get more

645
00:26:13.040 --> 00:26:13.880
for what you put in?

646
00:26:13.880 --> 00:26:16.200
You take all this time to put together some notes,

647
00:26:16.200 --> 00:26:17.400
think about examples, you know,

648
00:26:17.400 --> 00:26:19.240
make sure that it's easy to understand,

649
00:26:19.240 --> 00:26:20.840
you know, put together a thumbnail.

650
00:26:20.840 --> 00:26:22.720
It's like, why would we not just like test

651
00:26:22.720 --> 00:26:24.680
the thumbnail image when we could have two things

652
00:26:24.680 --> 00:26:25.960
and one of the thumbnails could like

653
00:26:25.960 --> 00:26:27.760
3X the views in the video?

654
00:26:27.760 --> 00:26:29.680
Like that's a high leverage activity.

655
00:26:29.680 --> 00:26:32.680
And so within the business that you have,

656
00:26:32.680 --> 00:26:34.280
in terms of getting more customers,

657
00:26:34.280 --> 00:26:37.360
I am all about thinking in terms of orders of magnitude.

658
00:26:37.360 --> 00:26:40.760
But when you can get 10, 20, 30% boost

659
00:26:40.760 --> 00:26:42.480
and you can do it in three or four parts of the funnel,

660
00:26:42.480 --> 00:26:44.880
you can double or triple the amount that you're getting

661
00:26:44.880 --> 00:26:46.160
from what you're already doing.

662
00:26:46.160 --> 00:26:49.720
And when that happens, your revenue will increase,

663
00:26:49.720 --> 00:26:51.840
sorry, your profit will increase disproportionately

664
00:26:51.840 --> 00:26:52.680
to your revenue.

665
00:26:52.680 --> 00:26:54.840
So if you double revenue and you keep your costs the same,

666
00:26:54.840 --> 00:26:57.200
you could very well, three or four X profit

667
00:26:57.200 --> 00:26:59.960
because that additional revenue might not have nearly

668
00:26:59.960 --> 00:27:02.080
the cost of the first set of revenue

669
00:27:02.080 --> 00:27:04.560
that you had to incur with your fixed costs.

670
00:27:04.560 --> 00:27:07.560
I want to rank for you the most important split tests

671
00:27:07.560 --> 00:27:10.200
that I do with the business.

672
00:27:10.240 --> 00:27:13.480
The first is going to be offers.

673
00:27:13.480 --> 00:27:14.600
That's the big obvious thing.

674
00:27:14.600 --> 00:27:16.120
What's the thing that you're giving away

675
00:27:16.120 --> 00:27:17.520
or that you're giving them?

676
00:27:17.520 --> 00:27:19.160
The second is going to be the packaging,

677
00:27:19.160 --> 00:27:21.640
which is going to be the headlines and sub headlines.

678
00:27:21.640 --> 00:27:25.040
The third is going to be the images associated

679
00:27:25.040 --> 00:27:28.120
with that headline and that packaging.

680
00:27:28.120 --> 00:27:31.320
Now the fourth one, and this one's really,

681
00:27:31.320 --> 00:27:33.800
the biggest split test winners I've had have come from one

682
00:27:33.800 --> 00:27:34.640
and four.

683
00:27:34.640 --> 00:27:36.320
Now the reason four is fourth is because

684
00:27:36.320 --> 00:27:38.320
it's actually really hard to do.

685
00:27:38.360 --> 00:27:41.040
But the biggest personal gains that I've had

686
00:27:41.040 --> 00:27:45.400
have come from this, which is third party integrations.

687
00:27:45.400 --> 00:27:46.920
You're like, what does that even mean?

688
00:27:46.920 --> 00:27:49.920
Well, a lot of businesses use other technology.

689
00:27:49.920 --> 00:27:51.520
You have a software stack.

690
00:27:51.520 --> 00:27:55.960
You have a CRM, you have a scheduler,

691
00:27:55.960 --> 00:28:01.440
you have a form thing on your site.

692
00:28:01.440 --> 00:28:04.600
Like all of these different pieces typically exist.

693
00:28:04.600 --> 00:28:07.400
But what those third party apps and tools

694
00:28:07.400 --> 00:28:10.480
don't typically report on is what the conversion rate

695
00:28:10.480 --> 00:28:13.440
is of their UX or their user experience.

696
00:28:13.440 --> 00:28:18.080
And so I have found some unbelievable unlocks.

697
00:28:18.080 --> 00:28:20.760
Some of the biggest absolute split test winners

698
00:28:20.760 --> 00:28:22.000
have come from just saying like,

699
00:28:22.000 --> 00:28:24.160
oh, we're not gonna use this software to capture this stuff

700
00:28:24.160 --> 00:28:25.400
or we're gonna use this software.

701
00:28:25.400 --> 00:28:28.480
And even though the aesthetics were basically the same

702
00:28:28.480 --> 00:28:31.280
outside of the third party integration,

703
00:28:31.280 --> 00:28:35.120
I have had this happen four times in my career

704
00:28:35.120 --> 00:28:38.360
where this test was like a company explosion

705
00:28:38.360 --> 00:28:40.600
in terms of increase in sales and profit.

706
00:28:40.600 --> 00:28:42.200
Like really big.

707
00:28:42.200 --> 00:28:44.480
The reason most people don't do this though

708
00:28:44.480 --> 00:28:45.800
is that it's hard.

709
00:28:45.800 --> 00:28:48.160
So if you have to split this different tools,

710
00:28:48.160 --> 00:28:49.840
it's like, okay, well, we got some customers here

711
00:28:49.840 --> 00:28:52.480
and this system, some customers here, it's kind of messy.

712
00:28:52.480 --> 00:28:54.800
But it's one of the most valuable things you can do.

713
00:28:54.800 --> 00:28:57.480
And what's interesting to me is that almost no third party

714
00:28:57.480 --> 00:29:00.280
provider ever reports on conversion rate data

715
00:29:00.280 --> 00:29:01.320
because honestly, how could they?

716
00:29:01.320 --> 00:29:02.480
Because everybody's different.

717
00:29:02.520 --> 00:29:05.200
But by having that and testing it for yourself,

718
00:29:05.200 --> 00:29:07.800
you'll see some of the biggest gains that you've ever had.

719
00:29:07.800 --> 00:29:10.440
Yeah, and one of the cool things with all of these

720
00:29:10.440 --> 00:29:13.040
is that when you implement these things,

721
00:29:13.040 --> 00:29:15.520
you get permanent lifts for the most part.

722
00:29:15.520 --> 00:29:17.960
So meaning like if you change the offer

723
00:29:17.960 --> 00:29:19.440
and then everything crushes, it's like great,

724
00:29:19.440 --> 00:29:20.280
that's the offer.

725
00:29:20.280 --> 00:29:21.720
If you change the headline, you find out that's the headline

726
00:29:21.720 --> 00:29:24.200
and it's like, cool, like this just keeps converting for us.

727
00:29:24.200 --> 00:29:29.000
So it's like, it's one time effort for ongoing gains.

728
00:29:29.000 --> 00:29:30.480
And like those are my favorite types of things

729
00:29:30.480 --> 00:29:34.600
to do in the world, like build once, sell 1,000 times.

730
00:29:34.600 --> 00:29:37.400
Like those, I mean, fundamentally like a book, same idea.

731
00:29:37.400 --> 00:29:39.080
You write a book once, it's a lot of effort once.

732
00:29:39.080 --> 00:29:40.800
But then after that, you can just keep selling the book

733
00:29:40.800 --> 00:29:42.080
over and over and over again.

734
00:29:42.080 --> 00:29:44.520
And same thing when you give away free products.

735
00:29:44.520 --> 00:29:46.200
It's like you build it once and then that can get you

736
00:29:46.200 --> 00:29:48.040
unlimited amounts of leads.

737
00:29:48.040 --> 00:29:52.680
Last week for Black Friday, I spent 200 plus hours

738
00:29:52.680 --> 00:29:54.520
not on that day, but leading up to it

739
00:29:54.520 --> 00:29:56.400
to come up with a scaling roadmap,

740
00:29:56.400 --> 00:29:58.520
basically taking company from zero to 100 million.

741
00:29:58.520 --> 00:30:03.640
It's 14 hours that breaks 10 stages of growth for any company.

742
00:30:03.640 --> 00:30:07.480
And it divides it across eight different functions

743
00:30:07.480 --> 00:30:08.000
of the business.

744
00:30:08.000 --> 00:30:10.720
So marketing sales, customer success, product,

745
00:30:10.720 --> 00:30:13.520
IT, HR, recruiting, finance.

746
00:30:13.520 --> 00:30:15.240
And so all of the functions of the business,

747
00:30:15.240 --> 00:30:17.240
what the problem that you're dealing with right now

748
00:30:17.240 --> 00:30:18.960
and what you need to do to graduate.

749
00:30:18.960 --> 00:30:22.440
That whole thing took me a really long time to put together.

750
00:30:22.440 --> 00:30:24.760
But now that it's there and everyone can just like fill out

751
00:30:24.760 --> 00:30:27.240
questions and get a personalized solution for them

752
00:30:27.240 --> 00:30:31.640
and it's free and it's better than other people charge for,

753
00:30:31.640 --> 00:30:35.000
then that can just consistently get more businesses into my world.

754
00:30:35.000 --> 00:30:35.960
So it's worth it.

755
00:30:35.960 --> 00:30:38.160
If we wanted to be number one in the market,

756
00:30:38.160 --> 00:30:41.840
part of having prepared to do flow comes with two big advantages.

757
00:30:41.840 --> 00:30:43.560
And this works the same if you're selling customers,

758
00:30:43.560 --> 00:30:45.240
the same idea, selling a vacuum.

759
00:30:45.240 --> 00:30:48.320
But there's two different ways that you can sell in a vacuum.

760
00:30:48.320 --> 00:30:50.800
And the reason selling in a vacuum is so important is because when you

761
00:30:50.800 --> 00:30:53.040
sell in a vacuum, you no longer have to compute on price

762
00:30:53.040 --> 00:30:54.760
or in my instance terms.

763
00:30:54.760 --> 00:30:59.560
And so the first is you sell where no one else is selling.

764
00:30:59.560 --> 00:31:02.720
So that's you find the little pond where there are no other fishermen

765
00:31:02.720 --> 00:31:05.320
and then you fish there and you get all the fish you want.

766
00:31:05.320 --> 00:31:10.160
The second way is to sell something that no one else sells.

767
00:31:10.160 --> 00:31:15.080
And so one is a where thing and the other is a what thing.

768
00:31:15.080 --> 00:31:18.480
So either you create something unique that you have some sort of

769
00:31:18.480 --> 00:31:21.040
feature or service that no one else can do because you have some

770
00:31:21.040 --> 00:31:22.520
sort of technological advantage.

771
00:31:22.520 --> 00:31:25.040
Fundamentally, this is what Elon does in every one of his businesses.

772
00:31:25.040 --> 00:31:27.000
He's happy to go where it's super competitive,

773
00:31:27.000 --> 00:31:29.280
but he just sells something that no one else can sell.

774
00:31:29.280 --> 00:31:32.000
And then he can command premium price for it.

775
00:31:32.000 --> 00:31:36.760
The alternative is to be good at providing value, at scale,

776
00:31:36.760 --> 00:31:39.200
to people so you get inbound demand.

777
00:31:39.200 --> 00:31:41.640
And then at that point, they're not choosing between you and six

778
00:31:41.640 --> 00:31:42.400
other people.

779
00:31:42.400 --> 00:31:45.000
They're saying, I'm either working with you or I'm not doing it.

780
00:31:45.000 --> 00:31:48.520
So the next big way of getting customers so fast,

781
00:31:48.520 --> 00:31:51.200
it should feel legal is spend more.

782
00:31:51.200 --> 00:31:54.440
Wait, that's not what it is.

783
00:31:54.440 --> 00:31:57.680
It's be able to spend more.

784
00:31:57.680 --> 00:31:59.160
So let me explain the difference.

785
00:31:59.160 --> 00:32:00.280
So spending more is just cool.

786
00:32:00.280 --> 00:32:01.400
You increase your budget.

787
00:32:01.400 --> 00:32:03.160
Sure, and that can work.

788
00:32:03.160 --> 00:32:07.360
But most businesses, if you ask businesses why they fail.

789
00:32:07.360 --> 00:32:09.560
So they do surveys in the Census Bureau.

790
00:32:09.560 --> 00:32:12.920
And I think the number one reason that small businesses say

791
00:32:12.920 --> 00:32:15.840
that they can't succeed is because they have a lack of customers.

792
00:32:15.840 --> 00:32:17.000
They have a lack of leads.

793
00:32:17.000 --> 00:32:18.640
They have a lack of demand.

794
00:32:18.640 --> 00:32:21.400
And the reality, most of the time, is not

795
00:32:21.400 --> 00:32:24.000
that they have a lack of leads, but that they don't have a good enough business

796
00:32:24.000 --> 00:32:26.120
to be able to afford them.

797
00:32:26.120 --> 00:32:29.520
And so this is where you have to solve the business from back to front.

798
00:32:29.520 --> 00:32:35.040
And so there was a company not that long ago that came out here to the headquarters.

799
00:32:35.040 --> 00:32:36.880
And they're like, we need help scaling.

800
00:32:36.880 --> 00:32:38.680
And I said, so what do you think your constraint is?

801
00:32:38.680 --> 00:32:41.720
And their constraint was leads cost too much.

802
00:32:41.720 --> 00:32:46.360
By the way, leads costing too much is rarely ever an issue.

803
00:32:46.360 --> 00:32:50.840
The issue is usually that you don't make enough money per customer.

804
00:32:50.840 --> 00:32:53.680
And here's a fun factoid for you that I can share.

805
00:32:53.680 --> 00:32:57.120
I look at a lot of different companies every single day.

806
00:32:57.120 --> 00:32:58.960
And that's because we sift through deals.

807
00:32:58.960 --> 00:33:01.120
And we look for patterns between markets.

808
00:33:01.120 --> 00:33:04.120
And so right now, for example, I'm really interested in the MetSpot space.

809
00:33:04.120 --> 00:33:06.440
And I would really like to get into a chain there.

810
00:33:06.440 --> 00:33:08.840
So if you are a MetSpot owner and you have, you know,

811
00:33:08.840 --> 00:33:11.560
call it five-ish million EBITDA, hit us up.

812
00:33:11.560 --> 00:33:14.640
One of the things that's not unique between different MetSpot chains

813
00:33:14.640 --> 00:33:16.400
is their cost to acquire customers.

814
00:33:16.400 --> 00:33:19.320
So the range of the cost of getting people in the door

815
00:33:19.320 --> 00:33:21.240
is usually actually not that different.

816
00:33:21.240 --> 00:33:26.120
So the benchmarks are usually maybe 1x, 2x of one another, not huge.

817
00:33:26.120 --> 00:33:29.080
But where the major difference is that exist between change

818
00:33:29.080 --> 00:33:31.800
in terms of their success is their LTV,

819
00:33:31.800 --> 00:33:35.440
which is how much customers are worth to that business over the long term.

820
00:33:35.440 --> 00:33:38.200
And this is usually where the rich get richer.

821
00:33:38.200 --> 00:33:40.240
This is why the biggest companies in the world

822
00:33:40.240 --> 00:33:42.000
are the biggest companies in the world.

823
00:33:42.000 --> 00:33:45.240
Starbucks has a $14,000 LTV.

824
00:33:45.240 --> 00:33:48.320
Now, for Starbucks to acquire a coffee customer

825
00:33:48.320 --> 00:33:49.680
is probably not going to cost that much more.

826
00:33:49.680 --> 00:33:51.320
If anything, they're probably wildly inefficient

827
00:33:51.320 --> 00:33:54.520
because there's this massive corporate behemoth, right?

828
00:33:54.520 --> 00:33:56.560
Compared to the local coffees out down the street.

829
00:33:56.560 --> 00:33:57.880
But if they're going to head to head

830
00:33:57.880 --> 00:34:00.320
from an actual per dollar per customer basis,

831
00:34:00.320 --> 00:34:02.440
usually the small local guy should be able to out

832
00:34:02.440 --> 00:34:03.800
compete the big national guy.

833
00:34:03.800 --> 00:34:05.280
Where the big national guy gets him

834
00:34:05.280 --> 00:34:07.040
is that they've got 40 or 50 years

835
00:34:07.040 --> 00:34:09.200
of optimizing lifetime value per customer.

836
00:34:09.200 --> 00:34:11.200
So they know every single thing

837
00:34:11.240 --> 00:34:12.680
that gets customers to come back,

838
00:34:12.680 --> 00:34:13.760
well gets them addicted,

839
00:34:13.760 --> 00:34:16.040
what types of products on what seasons,

840
00:34:16.040 --> 00:34:17.960
what pumps of flavors to give,

841
00:34:17.960 --> 00:34:20.200
what options to provide, which ones to cut,

842
00:34:20.200 --> 00:34:21.920
they know all of these things.

843
00:34:21.920 --> 00:34:23.720
And that is how they all compete.

844
00:34:23.720 --> 00:34:28.440
And so right now, if your cost to car customer

845
00:34:28.440 --> 00:34:30.000
is about the same as your industry,

846
00:34:30.000 --> 00:34:31.520
which by the way, you can totally just Google this.

847
00:34:31.520 --> 00:34:32.560
It's not that hard.

848
00:34:32.560 --> 00:34:34.920
You just say like average cost to car customer

849
00:34:34.920 --> 00:34:35.760
insert industry, right?

850
00:34:35.760 --> 00:34:36.840
And you can find it very quickly

851
00:34:36.840 --> 00:34:38.840
in a couple Google searches.

852
00:34:38.840 --> 00:34:40.200
That will then tell you,

853
00:34:40.200 --> 00:34:42.440
oh, maybe I'm not that far off.

854
00:34:42.440 --> 00:34:44.320
Oh, my business is broken.

855
00:34:44.320 --> 00:34:46.520
And so this often happens a lot too,

856
00:34:46.520 --> 00:34:48.040
where a small business owner will be like,

857
00:34:48.040 --> 00:34:49.360
those guys over charge,

858
00:34:49.360 --> 00:34:51.080
I'm gonna come into the market and charge less.

859
00:34:51.080 --> 00:34:52.160
It's like, well, there's a reason

860
00:34:52.160 --> 00:34:54.840
that they charge more and why they're bigger than you.

861
00:34:54.840 --> 00:34:56.320
Because they make more money, so they can charge more

862
00:34:56.320 --> 00:34:57.760
because they've already figured this out.

863
00:34:57.760 --> 00:35:01.880
In my opinion, the ability to spend more is LTV.

864
00:35:01.880 --> 00:35:05.160
And LTV is the arms race of advertising.

865
00:35:06.000 --> 00:35:10.160
And if you can spend more than anyone else can,

866
00:35:10.160 --> 00:35:12.360
you can outlast them.

867
00:35:12.360 --> 00:35:14.360
Because here's the fact that we'll make a lot

868
00:35:14.360 --> 00:35:15.840
of you uncomfortable.

869
00:35:15.840 --> 00:35:19.040
Advertising only becomes more expensive over time.

870
00:35:20.240 --> 00:35:22.160
The cost to get a customer literally only goes up.

871
00:35:22.160 --> 00:35:24.080
The cost of impressions, cost of eyeballs,

872
00:35:24.080 --> 00:35:25.400
only goes up over time.

873
00:35:25.400 --> 00:35:27.960
You need to have a force in your business

874
00:35:27.960 --> 00:35:30.800
that also concurrently goes up over time,

875
00:35:30.800 --> 00:35:32.440
which is your LTV.

876
00:35:32.440 --> 00:35:34.720
Customers should continue to pay for the services

877
00:35:34.800 --> 00:35:36.200
from you, continue to buy your products.

878
00:35:36.200 --> 00:35:38.600
And you should be continually expanding LTV

879
00:35:38.600 --> 00:35:40.600
so that as you go to colder and colder markets

880
00:35:40.600 --> 00:35:43.040
on more and more expensive media channels

881
00:35:43.040 --> 00:35:46.560
that you can continue to outspend and earn a profit.

882
00:35:46.560 --> 00:35:48.840
And you might be wondering why doesn't anyone do this?

883
00:35:48.840 --> 00:35:50.960
Well, it's usually an entirely different skill set.

884
00:35:50.960 --> 00:35:53.400
And there's usually fear associated with the actions

885
00:35:53.400 --> 00:35:56.680
that most strongly increase LTV.

886
00:35:56.680 --> 00:35:58.720
So changing or raising prices,

887
00:35:58.720 --> 00:36:00.680
something that most business owners are terrified of,

888
00:36:00.680 --> 00:36:03.160
it's one of the strongest levers on lifetime value

889
00:36:03.160 --> 00:36:04.160
and yet no one does it.

890
00:36:04.160 --> 00:36:05.440
And so they instead are like,

891
00:36:05.440 --> 00:36:06.760
how can I get cheaper leads?

892
00:36:06.760 --> 00:36:07.960
Because they had this one campaign,

893
00:36:07.960 --> 00:36:09.360
this one time that kind of worked.

894
00:36:09.360 --> 00:36:11.200
And then they're like, I wish it was like that time.

895
00:36:11.200 --> 00:36:12.360
It's kind of like their heroin addicts

896
00:36:12.360 --> 00:36:14.760
were like the first time they're chasing the first high.

897
00:36:14.760 --> 00:36:17.400
And everyone, every marketing campaign after that,

898
00:36:17.400 --> 00:36:18.840
they're trying to get lead costs to that low.

899
00:36:18.840 --> 00:36:20.080
It's never gonna happen again.

900
00:36:20.080 --> 00:36:21.000
Just get over it.

901
00:36:21.000 --> 00:36:23.200
The first time you send any kind of ad in a new market

902
00:36:23.200 --> 00:36:24.000
or you've got a new offer,

903
00:36:24.000 --> 00:36:25.320
it's always gonna do the best.

904
00:36:25.320 --> 00:36:27.760
That's not gonna be your stabilization point.

905
00:36:27.760 --> 00:36:28.840
It's gonna get worse.

906
00:36:28.840 --> 00:36:31.920
And so you have to build the business to accommodate that

907
00:36:31.920 --> 00:36:33.800
rather than stomp your feet and wish

908
00:36:33.800 --> 00:36:35.000
that leads were cheaper.

909
00:36:35.000 --> 00:36:36.520
All right, so we're talking about getting customers

910
00:36:36.520 --> 00:36:38.880
stupid fast, all right.

911
00:36:38.880 --> 00:36:41.040
One of the highest leverage things you can do

912
00:36:41.040 --> 00:36:43.840
is go to somebody who's already spent years developing

913
00:36:43.840 --> 00:36:47.280
your audience and then just ask to be promoted in front of it.

914
00:36:47.280 --> 00:36:49.520
Now, there's a number of ways of doing this.

915
00:36:49.520 --> 00:36:51.360
Of course you can go for the mega influencers

916
00:36:51.360 --> 00:36:52.400
and things like that.

917
00:36:52.400 --> 00:36:54.280
The way that I have built every affiliate business

918
00:36:54.280 --> 00:36:58.040
that I have run has been not going after the super affiliates

919
00:36:58.040 --> 00:37:02.880
but instead trying to aggregate many smaller businesses

920
00:37:02.880 --> 00:37:04.640
or nodes of new revenue.

921
00:37:04.640 --> 00:37:06.400
So there is a business right now

922
00:37:06.400 --> 00:37:08.640
that already has all the customers that you want

923
00:37:08.640 --> 00:37:10.040
and they don't have your product

924
00:37:10.040 --> 00:37:11.920
and you would both benefit from collaborating

925
00:37:11.920 --> 00:37:12.920
rather than competing.

926
00:37:12.920 --> 00:37:14.280
Here's the issue.

927
00:37:14.280 --> 00:37:17.360
If I were to get on stage in front of 1,000 business owners

928
00:37:17.360 --> 00:37:21.240
and say, raise your hand if you have a deal

929
00:37:21.240 --> 00:37:22.680
or if someone refers you a customer,

930
00:37:22.680 --> 00:37:24.240
you give them 20%.

931
00:37:24.240 --> 00:37:25.600
Half the road raised the hand.

932
00:37:25.600 --> 00:37:26.960
They'd be like, oh yeah, I do that.

933
00:37:26.960 --> 00:37:29.600
They'd be like, okay, everybody's raising your hands.

934
00:37:29.600 --> 00:37:31.960
Why don't you go refer a customer to one another

935
00:37:31.960 --> 00:37:34.280
and then the hands go down.

936
00:37:34.280 --> 00:37:36.600
Because no one cares, no one's gonna say,

937
00:37:36.600 --> 00:37:39.160
okay, I spent all this effort, all this time

938
00:37:39.160 --> 00:37:42.320
to build trust, advertise, sell, create a relationship

939
00:37:42.320 --> 00:37:45.600
and I'm just gonna hand them to you for 20% of your ticket.

940
00:37:45.600 --> 00:37:46.560
What do I care?

941
00:37:46.560 --> 00:37:47.400
Right?

942
00:37:47.400 --> 00:37:48.640
I'd rather just not even introduce the variable.

943
00:37:48.640 --> 00:37:50.280
I'll just keep living my life.

944
00:37:50.280 --> 00:37:52.520
And so if you really want affiliates to work,

945
00:37:52.520 --> 00:37:55.760
you have to make it so good that it hurts.

946
00:37:56.240 --> 00:37:57.080
And when I say that, I mean,

947
00:37:57.080 --> 00:37:59.520
you gotta give the affiliate so much

948
00:37:59.520 --> 00:38:02.560
that you're like, man, they're gonna make a killing on this.

949
00:38:03.560 --> 00:38:05.720
And this is how I like to do it.

950
00:38:05.720 --> 00:38:08.080
So let's say that you've got a product

951
00:38:08.080 --> 00:38:10.760
and you've got kind of four components to it.

952
00:38:10.760 --> 00:38:14.800
All right, and you sell this thing for whatever, $1,000.

953
00:38:14.800 --> 00:38:16.880
So what we wanna do is we're gonna say,

954
00:38:16.880 --> 00:38:20.880
we wanna take this corner and we're gonna peel this thing off.

955
00:38:20.880 --> 00:38:22.040
All right, so this is just gonna be

956
00:38:22.040 --> 00:38:24.400
a little side project that we have here.

957
00:38:24.440 --> 00:38:25.920
Just pretend that's cute.

958
00:38:25.920 --> 00:38:30.200
And instead of saying, hey, man, I'll give you 20%.

959
00:38:30.200 --> 00:38:34.440
Give them 20% of your product and give them 100%.

960
00:38:34.440 --> 00:38:36.040
Here what I'm saying.

961
00:38:36.040 --> 00:38:39.920
If I were a masseuse and what are all the things that I do?

962
00:38:39.920 --> 00:38:41.600
Okay, I might do sports massage.

963
00:38:41.600 --> 00:38:44.320
I might have the lotions and the oils.

964
00:38:44.320 --> 00:38:46.840
I might do the hot stone thing, right?

965
00:38:46.840 --> 00:38:50.280
Or I might be selling 10 massage packages

966
00:38:50.280 --> 00:38:52.960
or 20 massage packages, whatever.

967
00:38:52.960 --> 00:38:54.880
I would go to a business owner.

968
00:38:54.880 --> 00:38:58.480
And instead of saying, hey, I'll give you 20%.

969
00:38:58.480 --> 00:39:00.600
If you send me somebody who gets a massage,

970
00:39:00.600 --> 00:39:03.480
I would say, hey, man, why don't you sell

971
00:39:03.480 --> 00:39:05.720
all your customers three massages?

972
00:39:05.720 --> 00:39:08.800
And you can sell it for whatever you want from me

973
00:39:08.800 --> 00:39:09.880
and you can keep all the money.

974
00:39:11.520 --> 00:39:14.040
Oh, wait, so this is like a,

975
00:39:14.040 --> 00:39:15.480
well, how much can I charge?

976
00:39:15.480 --> 00:39:17.640
Whatever you want, but it's gotta be at least this.

977
00:39:17.640 --> 00:39:19.600
So that minimum is whatever your price is

978
00:39:19.600 --> 00:39:21.480
because you don't wanna get cheap customers in.

979
00:39:21.480 --> 00:39:25.320
So let's say that your price is $100.

980
00:39:25.320 --> 00:39:28.360
So you say you have to be able to sell those three massages

981
00:39:28.360 --> 00:39:29.320
for at least 300.

982
00:39:29.320 --> 00:39:31.400
You can sell for 500, you can sell for 300.

983
00:39:31.400 --> 00:39:32.480
You'll keep the whole 300.

984
00:39:32.480 --> 00:39:33.720
I just need to make sure the price is right

985
00:39:33.720 --> 00:39:34.920
so it's the right people.

986
00:39:34.920 --> 00:39:36.480
So let's say these guys are like, oh my God,

987
00:39:36.480 --> 00:39:37.360
these guys are nuts.

988
00:39:37.360 --> 00:39:40.560
I'm gonna sell these three massage packages for $500.

989
00:39:40.560 --> 00:39:41.800
And I'm gonna keep all of it.

990
00:39:41.800 --> 00:39:46.200
You know what, I would think to myself, what's my cost?

991
00:39:46.200 --> 00:39:50.640
So the cost of a massage, let's say that you pay your massage,

992
00:39:50.640 --> 00:39:51.880
maybe it's you, right?

993
00:39:51.880 --> 00:39:55.080
Let's say you pay $30 per massage and hard cost

994
00:39:55.080 --> 00:39:56.160
in terms of labor.

995
00:39:56.160 --> 00:40:01.160
Okay, so would I pay $90 to get somebody

996
00:40:01.640 --> 00:40:06.480
to do three sessions with me that paid $500

997
00:40:06.480 --> 00:40:08.000
for those three sessions?

998
00:40:08.000 --> 00:40:10.920
Well, that sounds like an incredibly qualified lead to me.

999
00:40:10.920 --> 00:40:15.360
And not only is it $90, it's $90 and know whether work.

1000
00:40:15.360 --> 00:40:18.760
I'm not making ads, I'm not running them in buying media.

1001
00:40:18.760 --> 00:40:20.120
I'm not building landing pages.

1002
00:40:20.200 --> 00:40:23.160
I'm not working leads, calling them, sending them,

1003
00:40:23.160 --> 00:40:24.120
I don't have any of that.

1004
00:40:24.120 --> 00:40:26.160
They're already paid, they're gonna show.

1005
00:40:26.160 --> 00:40:28.720
And so all I have to do is just have an easy handoff

1006
00:40:28.720 --> 00:40:30.600
where they can just schedule them onto my calendar

1007
00:40:30.600 --> 00:40:31.880
and then they've already paid.

1008
00:40:31.880 --> 00:40:33.200
So the likely they show is fine

1009
00:40:33.200 --> 00:40:35.160
and the rest of it's automated.

1010
00:40:35.160 --> 00:40:37.760
When that happens and then you make this offer,

1011
00:40:37.760 --> 00:40:41.120
hey man, and you do that to a hundred businesses,

1012
00:40:41.120 --> 00:40:42.480
there's a lot of businesses who are like,

1013
00:40:42.480 --> 00:40:46.440
oh, I'm down to sells them for $500 and do no work.

1014
00:40:46.480 --> 00:40:48.880
And there's something mental about,

1015
00:40:48.880 --> 00:40:50.560
you don't split it with me.

1016
00:40:50.560 --> 00:40:53.480
Just take all the money, it's a very different vibe.

1017
00:40:53.480 --> 00:40:55.880
And so what ends up happening is they either use it

1018
00:40:55.880 --> 00:41:00.880
as an upsell or they include it in their $1,000 thing

1019
00:41:01.560 --> 00:41:04.640
and they put your thing in and they charge the $1,000

1020
00:41:04.640 --> 00:41:06.600
and give them the three massages.

1021
00:41:06.600 --> 00:41:10.840
You don't care, either way, you have a $90 cost

1022
00:41:10.840 --> 00:41:12.920
of getting somebody who spent a lot of money

1023
00:41:12.960 --> 00:41:16.640
and is perfectly qualified for whatever your next thing is.

1024
00:41:16.640 --> 00:41:18.480
And so then you just do the math and say,

1025
00:41:18.480 --> 00:41:21.200
okay, well I know that I convert one out of three

1026
00:41:21.200 --> 00:41:26.200
of these people, one of three, into my $2,000 thing.

1027
00:41:26.720 --> 00:41:28.800
Which means that my cost to get a customer here

1028
00:41:28.800 --> 00:41:32.400
would be three times 90, which is $270.

1029
00:41:32.400 --> 00:41:37.080
So would I pay $270 to get $2,000?

1030
00:41:37.080 --> 00:41:38.960
Hell yeah, I would.

1031
00:41:38.960 --> 00:41:42.120
And without any of the work, of course.

1032
00:41:42.240 --> 00:41:44.320
And this is how you build an affiliate model

1033
00:41:44.320 --> 00:41:46.560
that gets you customers stupid fast

1034
00:41:46.560 --> 00:41:49.480
and gets you affiliates who are trying to fill up your calendars

1035
00:41:49.480 --> 00:41:52.280
because it actually makes sense for them now.

1036
00:41:52.280 --> 00:41:56.560
So if you're gonna have affiliates, do it like you mean it.

1037
00:41:56.560 --> 00:42:00.000
It has to be enough, it has to be incentivizing enough

1038
00:42:00.000 --> 00:42:02.560
to change their behavior or it's useless.

1039
00:42:02.560 --> 00:42:05.640
It's kind of like these coupon codes

1040
00:42:05.640 --> 00:42:07.920
that I see people give out to influencers.

1041
00:42:07.920 --> 00:42:09.120
It's like 10% off.

1042
00:42:09.160 --> 00:42:11.440
It's like, who cares?

1043
00:42:11.440 --> 00:42:13.640
Like either I'm gonna buy the jacket or I'm not.

1044
00:42:13.640 --> 00:42:16.040
10% is probably not gonna move the needle for me at all.

1045
00:42:16.040 --> 00:42:19.120
Now, for me, discounts have to be 50% or higher

1046
00:42:19.120 --> 00:42:22.080
for, in my opinion, for a real change in behavior.

1047
00:42:22.080 --> 00:42:24.120
We get a massive increase in demand.

1048
00:42:24.120 --> 00:42:27.240
And so I don't wanna take that off my main thing.

1049
00:42:27.240 --> 00:42:31.320
I wanna peel my main thing and then give 100% of that.

1050
00:42:31.320 --> 00:42:33.800
And so this next one is truth.

1051
00:42:33.800 --> 00:42:34.800
And you're like, what does that even mean?

1052
00:42:34.800 --> 00:42:36.800
How is this gonna get me customers really fast?

1053
00:42:36.800 --> 00:42:40.000
Well, lies will certainly get you customers pretty quickly

1054
00:42:40.000 --> 00:42:42.000
but it also ruin your reputation.

1055
00:42:42.000 --> 00:42:45.720
So you want truth to be your greatest ally,

1056
00:42:45.720 --> 00:42:47.680
not your greatest liability.

1057
00:42:47.680 --> 00:42:50.520
Because I will tell you a secret about advertising.

1058
00:42:50.520 --> 00:42:52.600
Nothing sells like the truth.

1059
00:42:52.600 --> 00:42:56.160
And so one, people talk about being authentic.

1060
00:42:56.160 --> 00:42:58.320
Well, if you want your advertising to be authentic,

1061
00:42:58.320 --> 00:43:00.680
just say what's true.

1062
00:43:00.680 --> 00:43:02.360
And what's interesting is that a lot of people

1063
00:43:02.360 --> 00:43:04.080
won't tell the truth about the things

1064
00:43:04.080 --> 00:43:05.840
that actually could help them.

1065
00:43:05.840 --> 00:43:07.320
So like if you're a small business

1066
00:43:07.320 --> 00:43:09.520
and you're getting started, say so.

1067
00:43:09.520 --> 00:43:13.920
If you don't have a huge amount of capacity

1068
00:43:13.920 --> 00:43:16.160
because you're small, say so.

1069
00:43:16.160 --> 00:43:18.680
Not having a lot of capacity increases scarcity.

1070
00:43:18.680 --> 00:43:20.520
It means that there's fewer slots available.

1071
00:43:20.520 --> 00:43:22.160
Not having a lot of capacity indicates

1072
00:43:22.160 --> 00:43:24.360
that there's probably a high level of personalization

1073
00:43:24.360 --> 00:43:25.680
and personal touch.

1074
00:43:25.680 --> 00:43:27.840
Being a small business for many people is a pro.

1075
00:43:27.840 --> 00:43:29.440
There aren't as many people who are like,

1076
00:43:29.440 --> 00:43:31.440
buy big corporate, buy big corporate.

1077
00:43:31.440 --> 00:43:33.440
No, people are like buy local, buy small business,

1078
00:43:33.440 --> 00:43:34.520
right, support small business.

1079
00:43:34.520 --> 00:43:37.840
And so like a lot of what people think are negatives

1080
00:43:37.840 --> 00:43:40.800
are actually things that make their offer

1081
00:43:40.800 --> 00:43:42.760
or their business more compelling,

1082
00:43:42.760 --> 00:43:45.160
especially to the right audience.

1083
00:43:45.160 --> 00:43:47.600
You want to arm yourself with truth

1084
00:43:47.600 --> 00:43:50.120
and think about how many different things are true.

1085
00:43:50.120 --> 00:43:52.800
And if you want to get really nasty with it,

1086
00:43:52.800 --> 00:43:56.760
you want to tell the truth that also isn't as exciting

1087
00:43:56.760 --> 00:44:00.760
up front so that when you sell your second piece of truth,

1088
00:44:00.760 --> 00:44:02.480
they will then believe you that much more.

1089
00:44:02.480 --> 00:44:03.960
So I'll give you an example.

1090
00:44:03.960 --> 00:44:08.960
So I remember we had a location that had bad parking.

1091
00:44:09.040 --> 00:44:12.480
And so we would say stuff like listen,

1092
00:44:12.480 --> 00:44:15.000
we don't have the biggest parking lot

1093
00:44:15.000 --> 00:44:16.760
or we're not the biggest gym in the neighborhood.

1094
00:44:16.760 --> 00:44:18.200
You know, we don't have more equipment

1095
00:44:18.200 --> 00:44:19.400
than the guys down the street.

1096
00:44:19.400 --> 00:44:21.280
But you know what, when you walk in this door,

1097
00:44:21.280 --> 00:44:23.120
you're gonna forget about all of that

1098
00:44:23.120 --> 00:44:24.720
because you're gonna have so much fun,

1099
00:44:24.720 --> 00:44:26.840
you're not even gonna care.

1100
00:44:26.840 --> 00:44:29.400
And so if you know that you're gonna tell the truth

1101
00:44:29.400 --> 00:44:32.320
and that people are going to find out about this anyways,

1102
00:44:32.320 --> 00:44:34.760
you might as well be the one who controls the narrative

1103
00:44:34.760 --> 00:44:38.840
and you can frame it in a way that that bad truth

1104
00:44:38.840 --> 00:44:41.720
helps amplify your good truth.

1105
00:44:41.720 --> 00:44:43.720
I obviously come from the fitness space

1106
00:44:43.720 --> 00:44:46.720
into the examples that I think of are there,

1107
00:44:46.720 --> 00:44:48.920
which is sometimes you don't like a bit,

1108
00:44:48.920 --> 00:44:50.760
one of the gym owners was not like super in shape.

1109
00:44:50.760 --> 00:44:53.960
They'd be like, hey, I'm not the most in shape guy.

1110
00:44:53.960 --> 00:44:56.320
But we have more fun at our gym

1111
00:44:56.320 --> 00:44:57.600
and people get great results

1112
00:44:57.600 --> 00:44:59.800
even though I like donuts a lot still.

1113
00:44:59.800 --> 00:45:00.800
What happens is people are like,

1114
00:45:00.880 --> 00:45:02.480
man, this guy's so authentic.

1115
00:45:02.480 --> 00:45:05.760
And if you don't say it, they're gonna think it.

1116
00:45:05.760 --> 00:45:08.520
See, you might as well account for it up front,

1117
00:45:08.520 --> 00:45:10.040
answer the why should I listen to you?

1118
00:45:10.040 --> 00:45:12.920
Or what about this big flaring problem

1119
00:45:12.920 --> 00:45:14.480
that I can obviously see?

1120
00:45:14.480 --> 00:45:15.680
You wanna control the narrative

1121
00:45:15.680 --> 00:45:17.720
and make that thing into a weapon for you,

1122
00:45:17.720 --> 00:45:20.480
make it into an asset that serves your purpose

1123
00:45:20.480 --> 00:45:23.320
rather than something that cast doubt in the prospect.

1124
00:45:23.320 --> 00:45:26.680
Because if you claim it, they like,

1125
00:45:26.680 --> 00:45:28.240
I don't know why this works this way,

1126
00:45:28.240 --> 00:45:30.400
but it's kind of like M&M when he said

1127
00:45:30.400 --> 00:45:31.840
all the negative things in eight miles

1128
00:45:31.840 --> 00:45:32.960
that anyone else could say about him

1129
00:45:32.960 --> 00:45:34.520
so no one else could say anything bad.

1130
00:45:34.520 --> 00:45:35.560
It's like if you claim them

1131
00:45:35.560 --> 00:45:37.200
that people can't hold it against you

1132
00:45:37.200 --> 00:45:40.120
and the hardest thing in all of marketing

1133
00:45:40.120 --> 00:45:42.480
is getting someone to believe you.

1134
00:45:42.480 --> 00:45:46.880
And so everything that you can do to increase trust

1135
00:45:46.880 --> 00:45:48.280
is one of the best investments

1136
00:45:48.280 --> 00:45:50.120
you can make in an advertising campaign in general

1137
00:45:50.120 --> 00:45:52.400
and ultimately in building a brand.

1138
00:45:52.400 --> 00:45:54.520
The truth isn't just a good strategy,

1139
00:45:54.520 --> 00:45:56.480
it's the only long term strategy

1140
00:45:56.480 --> 00:45:58.560
and it just takes people a different amount of time

1141
00:45:58.560 --> 00:45:59.480
to realize it.

1142
00:45:59.480 --> 00:46:01.120
And once you've activated affiliates,

1143
00:46:01.120 --> 00:46:03.360
once you've given away crazy amounts of stuff for you,

1144
00:46:03.360 --> 00:46:05.480
once you've doubled down on the right people

1145
00:46:05.480 --> 00:46:07.320
who are high leverage in the position,

1146
00:46:07.320 --> 00:46:09.920
once you've made the truth your ally

1147
00:46:09.920 --> 00:46:11.600
and you put your negatives out in the marketing

1148
00:46:11.600 --> 00:46:14.080
so that people believe the good stuff that you say

1149
00:46:14.080 --> 00:46:16.840
and you've focused on doing more and doing better,

1150
00:46:16.840 --> 00:46:18.400
you're gonna start getting more customers

1151
00:46:18.400 --> 00:46:19.240
than you can handle.

1152
00:46:19.240 --> 00:46:21.880
And at that point, you're gonna wanna have a playbook

1153
00:46:21.880 --> 00:46:24.320
for making so much money that it should feel illegal.

1154
00:46:24.320 --> 00:46:25.600
If you want that scaling roadmap,

1155
00:46:25.600 --> 00:46:26.600
it's personalized, it's free.

1156
00:46:26.600 --> 00:46:28.600
You can just hit the link in the description

1157
00:46:28.600 --> 00:46:30.160
and you'll find it.

1158
00:46:30.160 --> 00:46:32.960
Hey real quick guys, I have no paid sponsors

1159
00:46:32.960 --> 00:46:36.840
for my podcast, so be a bro and share the show

1160
00:46:36.840 --> 00:46:40.000
for a, be a pal until you're gals.

1161
00:46:40.000 --> 00:46:40.840
Thank you.