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You want to present your offers at the point of greatest deprivation, not the point of

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greatest satisfaction.

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So if I walk into a restaurant and I'm starving and I say I want to steak, I eat the steak,

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waiter comes back and they're like, how's the steak?

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And I'm like, oh, it was delicious.

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Thank you so much.

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They're like, great.

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You want another steak?

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I'm like, no, no, I'm good.

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They're like, oh, you don't like the steak?

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No, I love the steak.

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It was great.

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It just seems weird.

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That's we get these weird sales conversations.

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Hey, Alex, thanks for everything that you did.

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I'm James.

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I sell custom branch railings to homeowners.

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I, we did 420 or so last year.

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I was, I've read 10Xs greater than 2Xs, and so last night it was coming to me again.

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Like, do I really just want to double or do I want to try to 10Xs?

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And so what I want to try to do is to develop a network of products, best fires, architects,

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designers, contractors that can act kind of like a referral network.

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I want to shift away from the minors and to focus more on layers.

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We had one client last year about $50,000 worth of handrails.

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If I could get 10 of those in a year, then I would double revenue just with 10Xs.

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So kind of what are my best strategies to go about achieving that?

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So where did you source the single whale this year?

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She found me.

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It's all inbound.

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It's all through search.

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Okay.

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So SEL or PBC?

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SEL.

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Okay.

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I just started Facebook ads about three or four weeks ago.

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They're going pretty good, qualified about half of the lead so far.

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So if you want to go whale hunting, then I think your initial thought strategy of finding

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the architectural firms and engineering firms and whatnot is a good one.

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I would probably try the outreach method as my primary way because you can be hyper-targeted

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in terms of who you're reaching out to.

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And the key to making it work though is like, what's in it for them to refer you business?

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Are you asking me that?

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That's an excellent question.

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So architects will typically in a plan, like if they make a set of plans, they'll specify

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what kind of tiles to use and what kind of windows to use, et cetera.

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So we've gotten plans in the past where it's like, it's got the pictures from the website

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with the CAD drawings and everything on the plans.

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And so it's like how to persuade them to do that kind of an absentia.

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And I should also note that we ship nationwide.

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So this is not like, you know, hyper-loathing.

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Are you shipping or are you doing installs or no?

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No, we haven't done any.

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You just ship product.

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Interesting.

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Got it.

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Then who are the decision makers?

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Well, right now it's been primarily residential as well as what it sounds like.

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Right.

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It's primarily homeowners.

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We've done some commercial work, you know, but it's primarily homeowners who are,

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you know, looking for something different.

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And so it's very, what I call intentional inbound search.

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It's like they're looking for something.

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They're deliberately searching it out.

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They find it, you know, we have a lead magnet kind of which is like 250 desi.

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Yeah.

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Yeah.

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Yeah.

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Well, this is a fundamental change in business strategy.

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So you're aware of that.

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So with that comes risk.

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Because like if that, obviously the lowest or the highest risk of just return move or

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lowest risk, I guess is to probably add in, like if I were like tomorrow, what would

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I do?

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I probably just add PPC and right now because you already have something that's working

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on SEO.

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I would probably see how can I get way more articles written so that my SEO traffic can

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go up.

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Can I tackle more, you know, more keywords?

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It's like the for sure will work and make you more money play.

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The going after whales for sure can make more money because why not add zeroes to things.

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It'll just be a completely different sale and you'll have two levels of sales.

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So cell number one is going to be for the affiliates and then thinking out what's going

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to make it worth it for them.

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And then the second level is what's the, you know, what's the actual sale to the, to

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the whale customer.

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So who's the decision maker with the whales?

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Like the final decision maker is going to be the homeowner.

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Whoever's doing the project.

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But so you just want bigger homeowners?

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The architects have the ability to specify it and to put it in front of the client.

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So like we also did another one, which was about 60,000 for a guy that was doing a development

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of Airbnb's in Virginia.

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He put up like six year kind of things and you know, so I had two bit very, so both of

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them were architects that sent you these.

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The one was an architect and the other was a construction company.

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Okay.

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Yeah.

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So that's going to be what you're going to do and then they're going to be your affiliates.

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And so the, the million dollar question is what's in it for them?

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So my, my proposition would be, so there's three ways you can do affiliates, at least in,

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you know, in the world of Alex.

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So you have, they sell you shit for you and they get a commission.

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That's option one.

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That's typically my least favorite option, but it is an option.

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And two is that you give them some morsel of something that you sell that they can sell

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for 100% markup.

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They could keep all the money, but you get the introduction.

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This is my favorite way of doing it.

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The third way is that you basically allow them to just bundle in your free thing with

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their services, you know, with architecture firms, they're going to bundle in a railing

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for their service, but just for everybody else, like those are the three things.

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So it's like they bundle your, you're basically your lead magnet in for free with their

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thing they sell.

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So it makes, it enhances the value of their wall package.

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You give them the things that they could up sell, your lead magnet for an amount of money

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that they can keep 100% of, or they just sell your stuff and they get a kickback.

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Is there a version for this where they can just up charge?

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Like you can do a small portion of this that they get 100% of 100% like I don't think so,

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like maybe some kind of contractors or architect discount.

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We want them to be stupid to say no.

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Yeah, because like the generic like you get 20% kickback is just like everyone does it.

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Like who here does 20% kickbacks for anybody who refers to business?

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You can raise your hand.

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I'm not going to be upset.

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Okay.

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And so the point is is that, and you probably no one here has referred to anyone else business

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and because no one cares, that's kind of the point.

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And so it has to be a near-resistible offer.

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And so if we give away the lead magnet or something, think about it as like my hack for a $50,000

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customer is the cost of the lead magnet.

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And if I close one out of three introductions, then it's three X the cost of lead magnet

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is my cost to a hard customer, which is usually pretty darn good.

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But it sounds like a near-resistible offer to the architecture firm because they're like,

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we can just sell this and keep 100% like, yep, just make the introduction and I'll deliver

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that.

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And then when you talk to the customer, you're like, yeah, I'll deliver that.

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Here's one rail, but you need 10 more.

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And then you make the sale.

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Does that make sense?

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I'm not entirely sure.

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Like people would order the entire project.

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Okay.

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It's not like you can just like I can't just ship you a sample and be like, hey, look,

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there's a, yeah, then you're going to have to do the commission made structure, which

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is not my favorite, but that's probably the way you're going to have to do it.

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So either you can do the discount, I mean, I would say, guys, I have 20% that I can play

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with here.

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So you can take all 20 and give them no discount.

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You can take a 10% discount and then they get, and then you get 10% kickback, like this

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is what I got.

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I'll make it work whatever you want, but this is my very bottom price.

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Okay.

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And I think that's what, like that's the outbound strategy.

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So should I then in turn raise prices for direct to consumer?

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Yeah.

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I loved that.

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Okay.

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Thank you.

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Yeah.

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Right.

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Love that for you.

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My name is Cody.

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I sell roofs to people.

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We did 140 million last year trying to do 250 million this year, trying to figure out

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how to follow the principle of giving away more and you know, guarantees and bonuses when

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I have such high hard cost and such a high ticket item.

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Yeah.

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Order gross margins right now.

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40%.

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Gross.

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What's that?

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10 to 15.

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Okay.

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Got it.

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I just sold my roofing business and now we're part of a P firm that that now I'm directing

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that.

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That entire.

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So are you the platform?

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Yes.

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Okay.

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So you're the platform and how many tokens have they done?

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Eight.

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Got it.

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How long has it been since they started?

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About three, four years.

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I just got acquired 30 or we just closed 30 days ago and now they're trying to roll everything

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into my brand and I'm.

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Hey, yeah.

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Yeah.

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Got it.

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Okay.

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So sorry.

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Go back to the original question.

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So how do I give a follow the principle of give away more value make the offer so good

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itself.

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You got to feel dumb saying no when I've such high hard costs, I you know, I can't really

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do a money back guarantee.

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I really.

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Right.

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Give away more than a, you know, a roof.

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Well, the question is what is it is that the constraint?

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Well, like is that the thing that's limiting the growth of the business?

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In my theory, yes, because if I create a good enough offer, then I could roll that offer

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out to the other eight other brands and that would be the biggest amount of leverage

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I could deliver, you know, in the shortest amount of time.

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And is everyone insurance based?

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That's why they acquired us because we're retail.

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And so you're certainly the only guy selling just new roofs, everyone else is doing storm

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chasing and damage repair and shit like that.

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Correct.

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And what they want us to do is bring the retail model to the other brands and add another

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layer as we sell everything 100% virtually.

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So no in home appointments.

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It's all, you know, digital.

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And so that's what they, that's the vision is, is taking that, you know, nationwide.

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Centralized sales virtually.

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Right.

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So you want an irresistible roof offer below the roof off.

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I feel like if I were in your position, the first thing that I would do would be centralize

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everything first without trying to change.

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Basically, I wouldn't, I would take the model that I already know works as well as your

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revenue before you did the before you were required, okay, you're doing 20.

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So I would like, in terms of introducing levels of change, so this is actually pretty

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good for everybody like I will typically not try and change like five things at once.

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And so you centralizing all sales is going to get cost efficiency improvements and you're

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going to be able to have higher sales utilization.

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So you probably cut off the bottom third of the sales force that's low performing.

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That alone might give you a 25% lift in general because the best sales guys will take more

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of the sales and you'll have centralized all the costs like we have centralized all the

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cost, right?

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And so you'll have an increase in revenue and a decreasing cost that's paired.

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That would probably be my first step.

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The third part of the acquisition, that's the only way I did that position is if they were

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going to give me full control and centralized sales.

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Yes.

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I wouldn't, I mean, I know the question is about roofing, but like that's what I would

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do first and that will probably take you six months or more realistically.

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In terms of, in terms of the offer to roofs, an offer that's worked really well in home

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services is instead of being a money back guarantee, I position as a profit guarantee.

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So it's like, listen, you want your thing to be on time and on budget, probably.

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And so I guarantee that I will deliver it on time and on budget or I'll give you my profit,

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which is 20% whatever.

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And that way it's like, you're not underwater and you still 40% gross margins, you're not

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really losing on the deal, but then people are like, okay, so he's got skin in the game.

246
00:10:28.320 --> 00:10:32.800
And so that's a way of closing significantly more deals because the two biggest obstacles

247
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that well, you would know this, but in most home services, it's on time, on budget and

248
00:10:36.920 --> 00:10:39.440
probably for roofs, it's like, and how much am I going to be displaced?

249
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How much is going to interrupt my life?

250
00:10:41.160 --> 00:10:45.720
And so I would put my guarantee around those items and then just have a marginal amount

251
00:10:45.720 --> 00:10:46.720
that's back.

252
00:10:46.720 --> 00:10:50.520
And so they just, because they don't, so the big thing which is right with guarantees

253
00:10:50.520 --> 00:10:53.280
is that people don't want their money back, they want the roof.

254
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And so they just want to know that you care enough to make sure the roof gets delivered.

255
00:10:56.520 --> 00:11:01.080
And so that's really the solve for the guarantee is it just pays down risk of them not getting

256
00:11:01.080 --> 00:11:02.080
what they want.

257
00:11:02.080 --> 00:11:04.640
And so as long as it, back it's accomplished, you don't have to do with money back, you

258
00:11:04.640 --> 00:11:09.280
can just do it with some money back that gets them to say yes, so how does make it perfect.

259
00:11:09.280 --> 00:11:10.280
Hey, Alex.

260
00:11:10.280 --> 00:11:11.280
Hello.

261
00:11:11.280 --> 00:11:12.280
Thank you for the kind of you create.

262
00:11:12.280 --> 00:11:13.280
My name is Monica Fittell.

263
00:11:13.280 --> 00:11:14.280
I'm the founder of LFN.

264
00:11:14.280 --> 00:11:15.280
What?

265
00:11:15.280 --> 00:11:16.280
I'm the founder of LFN.

266
00:11:16.280 --> 00:11:17.280
Yeah.

267
00:11:17.280 --> 00:11:18.280
Okay.

268
00:11:18.280 --> 00:11:20.480
So basically we sell tools to creators, have to make more money.

269
00:11:20.480 --> 00:11:22.880
And we also simplify how brands collaborate with creators.

270
00:11:22.880 --> 00:11:23.880
Okay.

271
00:11:23.880 --> 00:11:25.000
Actually tools like software.

272
00:11:25.000 --> 00:11:27.960
So software and serve agency tools.

273
00:11:27.960 --> 00:11:32.360
So we have a music label, a creator agency for big creators and then a platform as well.

274
00:11:32.360 --> 00:11:33.360
Right.

275
00:11:33.360 --> 00:11:34.520
So I'm coming to that just in a bit.

276
00:11:34.520 --> 00:11:36.160
I know the focus topic.

277
00:11:36.160 --> 00:11:38.320
We made around 4.3 million last year.

278
00:11:38.320 --> 00:11:42.600
And basically my goal is try to get to 100 million or now the issue here is with the split

279
00:11:42.600 --> 00:11:44.240
between the three in terms of revenue.

280
00:11:44.240 --> 00:11:49.960
100 million for the creator agency 1.3 million for the music label.

281
00:11:49.960 --> 00:11:52.960
And then the rest is on the brand side.

282
00:11:52.960 --> 00:11:55.840
And the brand side is you attribute basically being an agent to do.

283
00:11:55.840 --> 00:11:56.840
Exactly.

284
00:11:56.840 --> 00:11:57.840
We're connecting it both.

285
00:11:57.840 --> 00:12:00.840
But basically what I've been doing is that I realized the disruption of AI that's kind

286
00:12:00.840 --> 00:12:01.840
of coming in.

287
00:12:01.840 --> 00:12:02.840
Okay.

288
00:12:02.840 --> 00:12:05.040
I also saw the scalability what we were doing because I've been in the YouTube space for

289
00:12:05.040 --> 00:12:06.040
a while.

290
00:12:06.040 --> 00:12:08.040
So a lot of these services aren't going to be scaling as much.

291
00:12:08.040 --> 00:12:12.680
So in the past two years, I've been taking that profit and putting it into a tech platform.

292
00:12:12.680 --> 00:12:17.640
Basically, it's like a creator store where you can sell your services, there's your product,

293
00:12:17.640 --> 00:12:19.280
but also items that you love.

294
00:12:19.280 --> 00:12:23.840
So the skin care that you use, the hair cream, the shoes that you learn at commission.

295
00:12:23.840 --> 00:12:27.440
And we use all of that data to make it easier for brands to know what creators to work

296
00:12:27.440 --> 00:12:28.440
with.

297
00:12:28.440 --> 00:12:31.040
Because right now in influencer marketing, it's like a spray method, right?

298
00:12:31.040 --> 00:12:32.040
I'm going to pay.

299
00:12:32.040 --> 00:12:34.160
I have no idea how much conversion they're going to actually get me.

300
00:12:34.160 --> 00:12:36.360
But our integration shows you.

301
00:12:36.360 --> 00:12:40.760
For a thousand clicks, they get you these number of visitors and then they end up buying.

302
00:12:40.760 --> 00:12:45.240
My challenge here right now is that I'm trying to scale that business, but my business model

303
00:12:45.240 --> 00:12:46.840
is we make money when you make money.

304
00:12:46.840 --> 00:12:51.080
So on the brand side, we get a 15% commission or a margin on all the spend.

305
00:12:51.080 --> 00:12:55.600
And on the creator side, we get around 8% from whatever they make with their fans by selling

306
00:12:55.600 --> 00:12:58.800
these digital products and courses or affiliate links.

307
00:12:58.800 --> 00:12:59.800
Okay.

308
00:12:59.800 --> 00:13:04.560
My issue here is I got 40,000 creators, but only a thousand are making money, right?

309
00:13:04.560 --> 00:13:08.000
And I've been kind of struggling between going on a SaaS model to be able to scale because

310
00:13:08.000 --> 00:13:12.320
when I do any social marketing, we get a creator that comes on board, but they don't

311
00:13:12.320 --> 00:13:14.160
make money right away.

312
00:13:14.160 --> 00:13:17.760
So it's not like you're, you know, and the longer it takes you to recoup your ad spend,

313
00:13:17.760 --> 00:13:20.880
it's not usually a good metric for scalability.

314
00:13:20.880 --> 00:13:21.880
So I'm kind of pivoting.

315
00:13:21.880 --> 00:13:26.440
Should I go into a SaaS model where right up, whatever I make from the creator, I'll just

316
00:13:26.440 --> 00:13:30.080
be like, Hey, like just pay me that price and I think zero percent from you.

317
00:13:30.080 --> 00:13:34.160
And then I just charge the brands, the commission to collaborate with those creators.

318
00:13:34.160 --> 00:13:38.600
This way I can scale the business and I'm much faster, say the last part again.

319
00:13:38.600 --> 00:13:42.720
So instead of me making percentages from creators, I provide them the same tools that a lot

320
00:13:42.720 --> 00:13:45.600
of them make, make money and I keep zero percent.

321
00:13:45.600 --> 00:13:46.600
Okay.

322
00:13:46.600 --> 00:13:49.080
But then let's say they have to pay like 20 bucks a month.

323
00:13:49.080 --> 00:13:52.400
But then I still make my money on the upside on the brand side by connecting them with these

324
00:13:52.400 --> 00:13:53.400
creators.

325
00:13:53.400 --> 00:13:54.400
Okay.

326
00:13:54.400 --> 00:13:55.400
So switch to a subscription.

327
00:13:55.400 --> 00:13:56.400
Switch to a subscription.

328
00:13:56.400 --> 00:13:57.400
Yeah.

329
00:13:57.400 --> 00:13:58.400
Okay.

330
00:13:58.400 --> 00:14:00.360
Cause right now, like I have 40,000 creators who signed up, but I'm really making money

331
00:14:00.360 --> 00:14:01.360
off a thousand.

332
00:14:01.360 --> 00:14:04.600
And it's free to sign up and you only get paid if they get paid.

333
00:14:04.600 --> 00:14:05.600
Yeah.

334
00:14:05.600 --> 00:14:08.240
So you're in a prosumer audience.

335
00:14:08.240 --> 00:14:13.560
So if you look at like Shopify, for example, it's super, it's, if you look at the amount

336
00:14:13.560 --> 00:14:17.320
of people who've tried to build marketplaces, almost all of them fail.

337
00:14:17.320 --> 00:14:23.400
And it's my opinion that the best marketplaces do run a SaaS and then once they get to scale,

338
00:14:23.400 --> 00:14:28.160
they can, they can kind of push more marketplace to like Shopify, for example, like it's 20

339
00:14:28.160 --> 00:14:31.800
million bucks a month or whatever it is because they know that the vast majority, like they

340
00:14:31.800 --> 00:14:37.640
make more money charging $29 a month and getting 4% on zero for the vast majority of stores.

341
00:14:37.640 --> 00:14:40.960
But people continue to pay for the hope that someday they will make money.

342
00:14:40.960 --> 00:14:45.400
And so I think the idea of switching to SaaS is not a bad one.

343
00:14:45.400 --> 00:14:49.640
I am concerned about the four businesses that you have.

344
00:14:49.640 --> 00:14:55.800
So cause in order to win it SaaS, you have to be like all in on software.

345
00:14:55.800 --> 00:15:01.640
And so the alternative to that would be, instead of letting creators come on for free,

346
00:15:01.640 --> 00:15:03.680
you would charge them to come on, which you could do.

347
00:15:03.680 --> 00:15:07.280
It has like a one time setup fee and then maybe increase the likelihood that they win.

348
00:15:07.280 --> 00:15:09.400
Either path would work.

349
00:15:09.400 --> 00:15:15.160
But if the ultimate goal is that you want to build a network of creators, then you want

350
00:15:15.160 --> 00:15:17.600
to have the lowest barrier possible on the creator side.

351
00:15:17.600 --> 00:15:21.880
So I'm still thinking of a free tier and a paid tier with some minor benefits, but then

352
00:15:21.880 --> 00:15:25.320
if you really want to make money, you've got to end up making subscriptions.

353
00:15:25.320 --> 00:15:26.320
Yeah.

354
00:15:26.320 --> 00:15:27.320
Yeah.

355
00:15:27.320 --> 00:15:30.720
You'll have to play with the feature set cause that's always a, a bitch.

356
00:15:30.720 --> 00:15:34.360
Just a path of least resistance to getting to a hundred million.

357
00:15:34.360 --> 00:15:35.360
Yeah.

358
00:15:35.360 --> 00:15:39.160
So I think adding the subscription for the base and it's still maintaining the revenue

359
00:15:39.160 --> 00:15:41.560
that you get from the sponsors makes sense.

360
00:15:41.560 --> 00:15:47.520
I would maybe push back slightly on the hypothesis that they can't convert anything because

361
00:15:47.520 --> 00:15:50.760
it dramatically decreases the value of the network from the sponsor side.

362
00:15:50.920 --> 00:15:51.760
What do you mean?

363
00:15:51.760 --> 00:15:53.240
Because some people will pay for impressions.

364
00:15:53.240 --> 00:15:54.240
Yeah.

365
00:15:54.240 --> 00:15:58.040
And so those guys can for sure deliver those.

366
00:15:58.040 --> 00:16:00.960
And so maybe there's like two tiers that you can sell you have another product on the

367
00:16:00.960 --> 00:16:02.960
ad side or the media side.

368
00:16:02.960 --> 00:16:03.960
It's just something to consider.

369
00:16:03.960 --> 00:16:04.960
Perfect.

370
00:16:04.960 --> 00:16:05.960
Thank you.

371
00:16:05.960 --> 00:16:06.960
You just validated my thoughts.

372
00:16:06.960 --> 00:16:07.960
Oh, good.

373
00:16:07.960 --> 00:16:08.960
I'm glad.

374
00:16:08.960 --> 00:16:09.960
I'm thinking the right way.

375
00:16:09.960 --> 00:16:10.960
No, I think it makes sense.

376
00:16:10.960 --> 00:16:11.960
Yeah.

377
00:16:11.960 --> 00:16:13.840
You have to, basically you have to position this higher ticket and do premium, the wake

378
00:16:13.840 --> 00:16:17.320
level morning and then select only further really good creators and that would be like

379
00:16:17.320 --> 00:16:22.200
you charge five or $10,000 and you really get them set up or you basically flip the other

380
00:16:22.200 --> 00:16:26.240
way, go premium and then it's all based on like basically media or recharge where you're

381
00:16:26.240 --> 00:16:29.680
just running tons and tons of ads to get people out of the platform and you just know

382
00:16:29.680 --> 00:16:31.680
what your average revenue per platform is.

383
00:16:31.680 --> 00:16:32.680
Perfect.

384
00:16:32.680 --> 00:16:33.680
Thank you.

385
00:16:33.680 --> 00:16:34.680
Hi.

386
00:16:34.680 --> 00:16:35.680
I'm Mauricio.

387
00:16:35.680 --> 00:16:40.920
I sell corporate training focus on soft skills to let's company through soft skills.

388
00:16:40.920 --> 00:16:41.920
What?

389
00:16:41.920 --> 00:16:45.360
You help who do soft skills, which I train companies in soft skills.

390
00:16:45.360 --> 00:16:46.360
Okay.

391
00:16:46.760 --> 00:16:48.920
And coaching, et cetera.

392
00:16:48.920 --> 00:16:53.200
We do 1.3 millions in revenue on a project based model.

393
00:16:53.200 --> 00:16:58.040
I would like to be at 100 million subscription based model.

394
00:16:58.040 --> 00:17:03.120
And what's stopping me is a big base model is more lucrative.

395
00:17:03.120 --> 00:17:09.000
So I feel like stuck with these whales, okay, that doesn't want the subscription model.

396
00:17:09.000 --> 00:17:11.920
So project based isn't bad.

397
00:17:11.920 --> 00:17:12.920
You just need to demonstrate.

398
00:17:12.920 --> 00:17:16.800
And this is the concept of recurring versus reoccurring, right?

399
00:17:16.800 --> 00:17:19.760
And so if you go project to project, there's nothing wrong with that as long as you can

400
00:17:19.760 --> 00:17:23.360
demonstrate that you have a higher renewal rate between those things.

401
00:17:23.360 --> 00:17:27.520
And so I'm in general, I do like having kind of project based stuff because typically

402
00:17:27.520 --> 00:17:30.400
you can price two to three times higher than you can for subscription.

403
00:17:30.400 --> 00:17:33.400
And so you have usually way better cash flow because people are willing to commit to a

404
00:17:33.400 --> 00:17:38.240
certain amount for this period of time versus, you know, this forever, which is what a subscription

405
00:17:38.240 --> 00:17:42.280
feels like even though realistically, we know that it's not that case.

406
00:17:42.280 --> 00:17:46.040
So you want to get to a 100 million dollar subscription business.

407
00:17:46.040 --> 00:17:50.280
You have a 1.3 million dollar non subscription business.

408
00:17:50.280 --> 00:17:56.360
I would say I don't think the limited to your business is that.

409
00:17:56.360 --> 00:18:00.280
So we have to dive a level deeper and say like what's stopping you from getting to 10 million

410
00:18:00.280 --> 00:18:02.320
with your current model.

411
00:18:02.320 --> 00:18:07.560
Real quick guys, I have a special, special gift for you for being loyal listeners of the

412
00:18:07.560 --> 00:18:08.880
podcast.

413
00:18:08.880 --> 00:18:14.400
Layla and I spent probably an entire quarter putting together our scaling roadmap.

414
00:18:14.400 --> 00:18:19.960
It's breaking scaling into 10 stages and across all eight functions of the business.

415
00:18:19.960 --> 00:18:23.120
So you've got marketing, you've got sales, you've got product, you got customer success,

416
00:18:23.120 --> 00:18:26.400
you've got IT, you've got recruiting, you've got HR, you've got finance.

417
00:18:26.400 --> 00:18:29.840
And we show the problems that emerged at every level of scale and how to graduate to

418
00:18:29.840 --> 00:18:30.840
the next level.

419
00:18:30.840 --> 00:18:35.680
It's all free and you can get it personalized to you since about 30-ish pages for each

420
00:18:35.680 --> 00:18:36.680
of the stages.

421
00:18:36.680 --> 00:18:40.560
Once you answer the questions, it will tell you exactly where you're at and what you need

422
00:18:40.560 --> 00:18:41.560
to do to grow.

423
00:18:41.560 --> 00:18:45.800
It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the

424
00:18:45.800 --> 00:18:48.680
part that's relevant to you, which will probably be about 90 minutes.

425
00:18:48.680 --> 00:18:52.920
And so if that's at all interesting, you can go to acquisition.com forward slash roadmap,

426
00:18:52.920 --> 00:18:57.360
R-O-A-D-MAP roadmap.

427
00:18:57.360 --> 00:19:05.200
Yes, we are now aiming to smaller companies on the subscription base and the whales where

428
00:19:05.200 --> 00:19:07.240
I stay in the same way.

429
00:19:07.240 --> 00:19:08.240
Basically.

430
00:19:08.240 --> 00:19:16.080
So that's our strategy to like this year where aiming for a 40% of subscription, subscription

431
00:19:16.080 --> 00:19:19.120
a base model from all the revenue.

432
00:19:19.120 --> 00:19:20.120
40%.

433
00:19:20.120 --> 00:19:21.120
40%.

434
00:19:21.120 --> 00:19:22.920
Is subscription already or that's the goal?

435
00:19:22.920 --> 00:19:23.920
No.

436
00:19:23.920 --> 00:19:24.920
It's the aim of this.

437
00:19:24.920 --> 00:19:25.920
Okay.

438
00:19:25.920 --> 00:19:26.920
Got it.

439
00:19:26.920 --> 00:19:27.920
And you said you have whales.

440
00:19:27.920 --> 00:19:28.920
Yes.

441
00:19:28.920 --> 00:19:29.920
And you have small companies.

442
00:19:29.920 --> 00:19:30.920
Smaller.

443
00:19:30.920 --> 00:19:31.920
Yes.

444
00:19:31.920 --> 00:19:33.920
What percentage of companies are neither bucket revenue wise?

445
00:19:33.920 --> 00:19:37.320
No, this is like 80, 20.

446
00:19:37.320 --> 00:19:41.240
So the whales have almost everyone.

447
00:19:41.240 --> 00:19:43.000
They just do more whales.

448
00:19:43.000 --> 00:19:44.000
Okay.

449
00:19:44.000 --> 00:19:45.080
I'm serious.

450
00:19:45.080 --> 00:19:47.560
So how do you get whales?

451
00:19:47.560 --> 00:19:49.760
We have an outbound sales team.

452
00:19:49.760 --> 00:19:50.760
Okay.

453
00:19:50.760 --> 00:19:51.840
And we are pretty good at it.

454
00:19:51.840 --> 00:19:57.760
So we get into a whale and then sell it to more departments.

455
00:19:57.760 --> 00:19:58.760
Yeah, of course.

456
00:19:58.760 --> 00:20:00.080
So what stops?

457
00:20:00.080 --> 00:20:03.000
So what's the limiter on your outbound team?

458
00:20:03.720 --> 00:20:04.720
People.

459
00:20:04.720 --> 00:20:05.720
Okay.

460
00:20:05.720 --> 00:20:06.720
HR.

461
00:20:06.720 --> 00:20:07.720
HR is something.

462
00:20:07.720 --> 00:20:08.720
So recruited.

463
00:20:08.720 --> 00:20:09.720
Yeah.

464
00:20:09.720 --> 00:20:10.720
Okay.

465
00:20:10.720 --> 00:20:11.720
Got it.

466
00:20:11.720 --> 00:20:14.120
So if you had twice the outbound team you have now with equal skill with your business

467
00:20:14.120 --> 00:20:15.120
double.

468
00:20:15.120 --> 00:20:16.120
Yes.

469
00:20:16.120 --> 00:20:17.120
Great.

470
00:20:17.120 --> 00:20:18.120
So what stops you from doing that?

471
00:20:18.120 --> 00:20:19.120
You don't have a recruiter?

472
00:20:19.120 --> 00:20:20.120
Yes.

473
00:20:20.120 --> 00:20:21.120
By less than worry.

474
00:20:21.120 --> 00:20:22.120
Okay.

475
00:20:22.120 --> 00:20:23.120
So you have a bad recruiter.

476
00:20:23.120 --> 00:20:24.120
Yes.

477
00:20:24.120 --> 00:20:25.120
Okay.

478
00:20:25.120 --> 00:20:27.720
So hopefully this like line of reasoning was fun for everyone, but that's what we have

479
00:20:27.720 --> 00:20:28.720
to work on.

480
00:20:28.720 --> 00:20:31.760
Like you know, like the rest of the stuff that we talked about is basically irrelevant and

481
00:20:31.760 --> 00:20:35.960
you need to go get another recruiter who's good and can get you outbound guys.

482
00:20:35.960 --> 00:20:40.720
Basically and you will continue like my advice is to continue increasing the outbound team

483
00:20:40.720 --> 00:20:43.480
until you can't handle the sales anymore.

484
00:20:43.480 --> 00:20:44.480
Okay.

485
00:20:44.480 --> 00:20:45.480
That's it.

486
00:20:45.480 --> 00:20:46.480
That's it.

487
00:20:46.480 --> 00:20:50.280
And whales fundamentally like it's not uncommon for them to be work on projects for.

488
00:20:50.280 --> 00:20:52.200
Just extend the terms.

489
00:20:52.200 --> 00:20:55.240
So if you if you sign, you know, they're currently doing six month engagements.

490
00:20:55.240 --> 00:20:57.240
Try to go for 12 or 18 month engagements.

491
00:20:57.240 --> 00:20:58.240
Okay.

492
00:20:58.240 --> 00:20:59.240
That makes sense?

493
00:20:59.240 --> 00:21:00.240
Yes.

494
00:21:00.240 --> 00:21:02.760
But that's just as valuable.

495
00:21:02.760 --> 00:21:06.080
Like if you have like a five year contract of the Fortune 500, it's recurring as far as

496
00:21:06.080 --> 00:21:07.280
like an investor would be concerned.

497
00:21:07.280 --> 00:21:09.480
It's the same thing.

498
00:21:09.480 --> 00:21:10.480
Make sense?

499
00:21:10.480 --> 00:21:11.480
Yes.

500
00:21:11.480 --> 00:21:12.480
Hopefully it's simpler.

501
00:21:12.480 --> 00:21:13.480
Hey.

502
00:21:13.480 --> 00:21:14.480
Yes.

503
00:21:14.480 --> 00:21:15.480
My name is Joshua.

504
00:21:15.480 --> 00:21:17.480
I'm actually a car practice as well.

505
00:21:17.480 --> 00:21:18.880
Like Chris.

506
00:21:18.880 --> 00:21:22.880
I have a great product that I would love to tell you about self cracking.

507
00:21:22.880 --> 00:21:23.880
Yeah.

508
00:21:23.880 --> 00:21:24.880
Yeah.

509
00:21:24.880 --> 00:21:25.880
That's funny.

510
00:21:25.880 --> 00:21:26.880
Yeah.

511
00:21:26.880 --> 00:21:27.880
Yeah.

512
00:21:28.880 --> 00:21:29.880
Cool.

513
00:21:29.880 --> 00:21:36.400
And our current revenues around 750, we'd like to get it to 2.3, perfect the model and

514
00:21:36.400 --> 00:21:37.400
then scale.

515
00:21:37.400 --> 00:21:38.400
Okay.

516
00:21:38.400 --> 00:21:41.040
This is what is currently my predicament.

517
00:21:41.040 --> 00:21:47.360
So we averaged 48 new clients per month last year consistently from two main, two main

518
00:21:47.360 --> 00:21:50.120
channels, referral and Facebook meta.

519
00:21:50.120 --> 00:21:51.120
Okay.

520
00:21:51.120 --> 00:21:52.440
Was it what?

521
00:21:52.440 --> 00:21:55.360
So it's 35% referrals, 65%.

522
00:21:55.360 --> 00:21:56.360
Okay.

523
00:21:56.360 --> 00:21:57.360
Yeah.

524
00:21:57.360 --> 00:21:58.360
Excuse me.

525
00:21:58.360 --> 00:21:59.360
Sorry about nervous.

526
00:21:59.360 --> 00:22:00.360
Thanks.

527
00:22:00.360 --> 00:22:03.760
You're 35, 65, referral versus meta, you did 48 customers per month.

528
00:22:03.760 --> 00:22:04.760
Yeah.

529
00:22:04.760 --> 00:22:06.560
The issue that you have 750, you want to get to 2.3?

530
00:22:06.560 --> 00:22:07.560
Yeah.

531
00:22:07.560 --> 00:22:13.240
So my question, and I think what's stopping me is determining where I should be focusing

532
00:22:13.240 --> 00:22:18.080
because we get great results for clients like they get, but you know, even if they have

533
00:22:18.080 --> 00:22:23.180
an amazing result, like a lot of those clients leave, which is fine, and then the battery

534
00:22:23.180 --> 00:22:24.180
need us.

535
00:22:24.180 --> 00:22:25.180
It's terrible.

536
00:22:25.500 --> 00:22:29.740
And I'd love to have more clients to stay with us longer term from like a membership

537
00:22:29.740 --> 00:22:31.060
perspective.

538
00:22:31.060 --> 00:22:36.540
And when I looked at our term retention rates, our gross retention rate is 47%.

539
00:22:36.540 --> 00:22:41.460
And then our net retention rate is 74%.

540
00:22:41.460 --> 00:22:45.860
So once we've done expansions upsells and everything else, it brings it up, but we still

541
00:22:45.860 --> 00:22:50.460
lose a lot of, we leave a lot of money on the table on the, because we're losing.

542
00:22:50.460 --> 00:22:53.500
You lose half your customers, but you keep a little bit more revenue, so you're talking

543
00:22:53.500 --> 00:22:55.100
about revenue retention versus love.

544
00:22:55.100 --> 00:22:56.100
Yeah.

545
00:22:56.100 --> 00:22:57.100
So I'm like, which one do I focus on?

546
00:22:57.100 --> 00:23:00.380
Do we expand the marketing and just keep pumping the machine because I literally feel

547
00:23:00.380 --> 00:23:04.540
like you, I've got to a stage in my business where I'm still in the clinic, still serving

548
00:23:04.540 --> 00:23:05.540
patients.

549
00:23:05.540 --> 00:23:06.540
I love my clients.

550
00:23:06.540 --> 00:23:07.540
Yeah.

551
00:23:07.540 --> 00:23:12.460
But like, you know, even if they've had an amazing change in their life, like it's like

552
00:23:12.460 --> 00:23:15.660
you with the weight loss, like I've got to the point now where I'm like, man, like

553
00:23:15.660 --> 00:23:21.420
this doesn't excite me anymore, like, I know I can help serve more people if I can

554
00:23:21.420 --> 00:23:24.500
just become more of the owner rather than the operator.

555
00:23:24.500 --> 00:23:29.020
Step my shifts down from, you know, five days a week to like two now.

556
00:23:29.020 --> 00:23:30.860
And if you made more money, you'd definitely be happier.

557
00:23:30.860 --> 00:23:31.860
So not necessarily.

558
00:23:31.860 --> 00:23:32.860
Yeah.

559
00:23:32.860 --> 00:23:33.860
I was a joke.

560
00:23:33.860 --> 00:23:34.860
Yeah.

561
00:23:34.860 --> 00:23:35.860
Okay.

562
00:23:35.860 --> 00:23:37.340
So you have a location, you're doing 750.

563
00:23:37.340 --> 00:23:39.500
What does it cost up in a location?

564
00:23:39.500 --> 00:23:40.500
We own the building.

565
00:23:40.500 --> 00:23:43.300
Well, outside of real estate, what's a cost to outfit the location?

566
00:23:43.300 --> 00:23:44.300
Oh, outfit it.

567
00:23:44.300 --> 00:23:50.980
So we, so we're pretty lean like we have for our fitted our current one, it was a hundred

568
00:23:50.980 --> 00:23:51.980
thousand.

569
00:23:51.980 --> 00:23:52.980
Okay.

570
00:23:52.980 --> 00:23:53.980
Got it.

571
00:23:53.980 --> 00:23:54.980
What's profit?

572
00:23:54.980 --> 00:23:55.980
We kind of keep it.

573
00:23:55.980 --> 00:24:00.620
We've kept it low the last few years, but we've, yeah, it's like, it's like 13% okay.

574
00:24:00.620 --> 00:24:01.620
And 50.

575
00:24:01.620 --> 00:24:02.620
Yeah.

576
00:24:02.620 --> 00:24:03.620
So you need to fix that.

577
00:24:03.620 --> 00:24:04.620
Yeah.

578
00:24:04.620 --> 00:24:05.620
Okay.

579
00:24:05.620 --> 00:24:09.220
So that's a lot of like raw, you know, own earnings and stuff.

580
00:24:09.220 --> 00:24:10.220
Well, what's SD?

581
00:24:10.220 --> 00:24:11.220
So seller discretionary.

582
00:24:11.220 --> 00:24:13.620
So what do you make plus the profit of the business?

583
00:24:13.620 --> 00:24:15.460
So me and my wife, we draw a hundred K.

584
00:24:15.460 --> 00:24:16.460
Uh-huh.

585
00:24:16.460 --> 00:24:17.460
Each?

586
00:24:17.460 --> 00:24:18.460
No.

587
00:24:18.460 --> 00:24:19.460
Total.

588
00:24:19.460 --> 00:24:20.460
Yeah.

589
00:24:20.460 --> 00:24:21.460
200K on 750.

590
00:24:21.460 --> 00:24:22.460
Yeah.

591
00:24:22.460 --> 00:24:23.460
Okay.

592
00:24:23.460 --> 00:24:24.460
Got it.

593
00:24:24.460 --> 00:24:25.460
So whatever.

594
00:24:25.460 --> 00:24:27.700
That's 20, 30, 30% ish margins.

595
00:24:27.700 --> 00:24:28.700
Okay.

596
00:24:28.700 --> 00:24:31.900
So you want to get to two point three, why two point three?

597
00:24:31.900 --> 00:24:34.900
Because this is what we worked out for our build like our practice.

598
00:24:34.900 --> 00:24:39.940
We could, if we were at capacity, okay, so that location can do two to three million.

599
00:24:39.940 --> 00:24:40.940
Okay.

600
00:24:40.940 --> 00:24:47.940
So the issues we have to solve retaining customers now, if you keep 50% of customers,

601
00:24:47.940 --> 00:24:50.700
like if, let's say you lose half your customers, you're one, but then after that, they stay

602
00:24:50.700 --> 00:24:51.700
forever.

603
00:24:51.700 --> 00:24:52.700
That's fine.

604
00:24:52.700 --> 00:24:54.340
We just have, it's like in next year, you'll double.

605
00:24:54.340 --> 00:24:58.020
If that isn't the case, then and you lose half of those customers the next year, then

606
00:24:58.020 --> 00:25:02.780
half of those, the next year kind of thing, I would see what we could do to improve that.

607
00:25:02.780 --> 00:25:07.340
That being said, you're in a business that traditionally is marketing heavy.

608
00:25:07.340 --> 00:25:10.820
It's kind of like weight loss because like people get fixed and then they're like, yeah,

609
00:25:10.820 --> 00:25:11.820
dooses.

610
00:25:11.820 --> 00:25:16.260
So the, the strategy that I've seen that has worked really well in the Cairo space is

611
00:25:16.260 --> 00:25:19.900
basically going significantly higher ticket number one and number two niching down in terms

612
00:25:19.900 --> 00:25:21.740
of the different problems you solve.

613
00:25:21.740 --> 00:25:28.060
So this is like neuropathy, diabetes stuff, those types of like kind of segments and having

614
00:25:28.060 --> 00:25:33.620
more targeted advertising for those avatars and selling significantly higher price packages.

615
00:25:33.620 --> 00:25:37.100
And that's typically how those businesses will get to like a few hundred thousand dollars

616
00:25:37.100 --> 00:25:42.780
a month just with one like very small store and say typically that, that model is a, you

617
00:25:42.780 --> 00:25:46.860
run ads for some sort of free workshop, free dinners, free whatever pretty much how we

618
00:25:46.860 --> 00:25:48.220
did it and we built our business.

619
00:25:48.220 --> 00:25:49.220
Okay.

620
00:25:49.220 --> 00:25:52.860
Like because we really look at what's the take your price that you're charging it's different

621
00:25:52.860 --> 00:25:53.860
based on that.

622
00:25:53.860 --> 00:25:57.340
Well, you sound 50 customers a month and you're doing 60K.

623
00:25:57.340 --> 00:26:03.460
So the, the average is around like it depends because every plan is different for the client.

624
00:26:03.460 --> 00:26:05.460
So we don't just give like a here's your plan.

625
00:26:05.460 --> 00:26:06.460
No, I know.

626
00:26:06.460 --> 00:26:09.740
But if I just did a simple math, I'd say $60,000 a month, 15 new customers average customer

627
00:26:09.740 --> 00:26:10.740
is 12 hundred bucks.

628
00:26:10.740 --> 00:26:11.740
Yeah.

629
00:26:11.740 --> 00:26:14.700
So it's not the same model because I'm talking $10,000.

630
00:26:14.700 --> 00:26:15.700
Right.

631
00:26:15.700 --> 00:26:16.700
Does that make sense?

632
00:26:16.700 --> 00:26:17.700
Yeah.

633
00:26:17.700 --> 00:26:18.700
More.

634
00:26:18.700 --> 00:26:19.700
Yeah.

635
00:26:19.700 --> 00:26:21.700
So I think you have to get niche down in terms of, so like if you're doing all those things

636
00:26:21.700 --> 00:26:24.020
I think you probably need to add is zero to your price tag.

637
00:26:24.020 --> 00:26:28.860
We're already the most premium in our like area like, well, then it won't change.

638
00:26:28.860 --> 00:26:30.020
You'll still be the most premium.

639
00:26:30.020 --> 00:26:31.020
Okay.

640
00:26:31.020 --> 00:26:32.020
And which one would you focus on them?

641
00:26:32.020 --> 00:26:35.540
Would you just focus on like just filling the front end or would you try and fix that

642
00:26:35.540 --> 00:26:38.300
because you talked about like fix the chair and like get it to less than free?

643
00:26:38.300 --> 00:26:40.860
Like, or would you double down on both like with that?

644
00:26:41.020 --> 00:26:43.300
Well, if you keep half your customers, you're pretty close to three.

645
00:26:43.300 --> 00:26:46.620
So again, you're pretty close to three if you keep half your customers.

646
00:26:46.620 --> 00:26:47.620
Right.

647
00:26:47.620 --> 00:26:51.740
When we track it, it varies between free and seven on the money, depending on the month.

648
00:26:51.740 --> 00:26:54.300
I mean, are there things that you could do to improve it sure?

649
00:26:54.300 --> 00:26:56.100
I think you have more of a model issue.

650
00:26:56.100 --> 00:26:57.100
Okay.

651
00:26:57.100 --> 00:27:02.460
Like you obviously get a car customers and you're doing a decent enough job keeping them.

652
00:27:02.460 --> 00:27:06.500
If we need to improve how much money this thing makes, it's either a pricing thing.

653
00:27:06.500 --> 00:27:08.300
Basically it's an offer and pricing thing.

654
00:27:08.300 --> 00:27:12.220
Because you need to charge more so that you can make more money.

655
00:27:12.220 --> 00:27:17.780
And then once you have the cash flow, then the expansion becomes pretty straightforward.

656
00:27:17.780 --> 00:27:19.580
That goes for basically everyone.

657
00:27:19.580 --> 00:27:22.100
Like a lot of times it's like, you know, we're doing 20% and you have what I would consider

658
00:27:22.100 --> 00:27:23.740
is like a normal business.

659
00:27:23.740 --> 00:27:24.740
It makes money.

660
00:27:24.740 --> 00:27:25.740
We work hard.

661
00:27:25.740 --> 00:27:28.420
But there's no like you never feel like you really can like get ahead.

662
00:27:28.420 --> 00:27:29.420
Yeah.

663
00:27:29.420 --> 00:27:33.980
It's usually because there's some significant hole in the business and you're decent at

664
00:27:33.980 --> 00:27:35.980
both sides.

665
00:27:35.980 --> 00:27:41.180
And I think that the issue is that you just need to be making way more money, which is

666
00:27:41.180 --> 00:27:43.060
I think you need to add more.

667
00:27:43.060 --> 00:27:45.460
Do you sell physical products and consumables?

668
00:27:45.460 --> 00:27:46.460
Not really.

669
00:27:46.460 --> 00:27:50.620
Do you sell like braces or thought I used to think in a care plan, it will be based on

670
00:27:50.620 --> 00:27:55.060
like, yeah, we do adjustments, massage, it might be like traction, whatever.

671
00:27:55.060 --> 00:27:56.060
Yeah.

672
00:27:56.060 --> 00:27:58.900
So the key is there's two models that have worked really well.

673
00:27:58.900 --> 00:28:03.540
One is where you basically upsell them some sort of machine that they can take home.

674
00:28:03.540 --> 00:28:04.540
Yeah.

675
00:28:04.540 --> 00:28:09.060
And do other work and there's a big markup on that and the other is supplements because

676
00:28:09.060 --> 00:28:12.300
you can sell years worth of supplements or six months worth of supplements up front.

677
00:28:12.300 --> 00:28:17.020
Make a really good bit there and it doesn't increase your operational drag at all because

678
00:28:17.020 --> 00:28:18.020
you just make the sale.

679
00:28:18.020 --> 00:28:19.020
Give them the product.

680
00:28:19.020 --> 00:28:20.020
Yeah.

681
00:28:20.020 --> 00:28:21.020
Does that make sense?

682
00:28:21.020 --> 00:28:22.020
Yeah.

683
00:28:22.020 --> 00:28:25.180
That's what I would add in to justify the higher price so that you could make more money

684
00:28:25.180 --> 00:28:28.700
per customer, which will then make you more money overall, which then fixes the model,

685
00:28:28.700 --> 00:28:29.700
which then allows you to scale.

686
00:28:29.700 --> 00:28:30.700
Gotcha.

687
00:28:30.700 --> 00:28:31.700
That makes sense.

688
00:28:31.700 --> 00:28:32.700
Okay.

689
00:28:33.700 --> 00:28:34.700
All right.

690
00:28:34.700 --> 00:28:35.700
Thank you.

691
00:28:35.700 --> 00:28:41.700
My name is Natchel and we sell surf coaching to intermediate and advanced surfers.

692
00:28:41.700 --> 00:28:42.700
Okay.

693
00:28:42.700 --> 00:28:46.500
We do 700 a year and we'll like to be five million.

694
00:28:46.500 --> 00:28:47.500
Okay.

695
00:28:47.500 --> 00:28:52.020
And what's stopping us right now, it's basically our lifetime value to cut its three to

696
00:28:52.020 --> 00:28:53.020
one.

697
00:28:53.020 --> 00:28:59.540
But that's because we change our program or online program, we change it from two months

698
00:28:59.540 --> 00:29:00.540
to yearly.

699
00:29:00.540 --> 00:29:01.540
Okay.

700
00:29:02.540 --> 00:29:03.540
Crazy price.

701
00:29:03.540 --> 00:29:04.540
Yeah.

702
00:29:04.540 --> 00:29:05.540
Exactly.

703
00:29:05.540 --> 00:29:06.540
And also have a longer time window.

704
00:29:06.540 --> 00:29:07.540
So hopefully.

705
00:29:07.540 --> 00:29:08.540
Obviously.

706
00:29:08.540 --> 00:29:09.540
Exactly.

707
00:29:09.540 --> 00:29:10.540
Yeah.

708
00:29:10.540 --> 00:29:16.540
So my question is, how would you go about the did sention process once they finish the

709
00:29:16.540 --> 00:29:19.180
year or even do it before the end of the year?

710
00:29:19.180 --> 00:29:20.180
Yeah.

711
00:29:20.180 --> 00:29:21.180
Well, it's definitely not at the end of the year.

712
00:29:21.180 --> 00:29:22.180
So you have four.

713
00:29:22.180 --> 00:29:28.020
So there's four places that you can do sention, ascension upsells or walk through these.

714
00:29:28.020 --> 00:29:29.020
Okay.

715
00:29:29.020 --> 00:29:32.340
So these are kind of the spaces that you can, that you can do the upsells.

716
00:29:32.340 --> 00:29:35.100
And this is the order for your business.

717
00:29:35.100 --> 00:29:39.740
If you already sell something expensive upfront, which I'm guessing is now the annual, then

718
00:29:39.740 --> 00:29:43.900
you can ignore, well, I mean, honestly, no, I'm going to say it.

719
00:29:43.900 --> 00:29:47.820
So you can immediately upsell people, hey, now that you bought this thing, you want to

720
00:29:47.820 --> 00:29:48.820
get something else.

721
00:29:48.820 --> 00:29:50.740
That's if you want fries with your Coke.

722
00:29:50.740 --> 00:29:52.260
So that's that type of upsell.

723
00:29:52.260 --> 00:29:56.420
Now, if that's not the nature of the upsell that you have, then this is where you'd begin

724
00:29:56.420 --> 00:29:57.420
offering it.

725
00:29:57.420 --> 00:29:59.660
You can ignore the first one and the other four will apply.

726
00:29:59.660 --> 00:30:00.660
Okay.

727
00:30:00.660 --> 00:30:04.140
So 24 to 48 hours, that's probably when you have some sort of onboarding call, right?

728
00:30:04.140 --> 00:30:05.140
Boreding.

729
00:30:05.140 --> 00:30:06.140
Ah, there you go.

730
00:30:06.140 --> 00:30:10.780
And so the best upsell that you can tag with this is more help with that thing you just

731
00:30:10.780 --> 00:30:11.780
bought.

732
00:30:11.780 --> 00:30:14.420
And so either that more help or better help.

733
00:30:14.420 --> 00:30:16.260
So that would be like a higher qualified coach.

734
00:30:16.260 --> 00:30:19.860
This is a master's level three coach, he only coaches people who are whatever.

735
00:30:19.860 --> 00:30:22.260
And so if you want, it sounds like you might be a good fit for that.

736
00:30:22.260 --> 00:30:24.260
Do you want me to set it up with a call there, right?

737
00:30:24.260 --> 00:30:26.740
So you can immediately send people who just bought number one.

738
00:30:26.740 --> 00:30:29.940
That'll also help you offset cat bring up, bring up cash forward.

739
00:30:29.940 --> 00:30:32.580
The next one is when you have some sort of milestone.

740
00:30:32.580 --> 00:30:35.900
So they get up on their board for the first time or they do the first flip or whatever,

741
00:30:35.900 --> 00:30:39.180
you know, whatever big milestone that somebody might have, you know, within the first

742
00:30:39.180 --> 00:30:42.180
30 or 60 days of being inside of your thing, right?

743
00:30:42.180 --> 00:30:44.220
At that point, you say, Hey, we'd love to hop on a call.

744
00:30:44.220 --> 00:30:47.780
Let's see what else we can do to help you like, you know, capitalize on the momentum.

745
00:30:47.780 --> 00:30:50.460
And that's when you say, cool, let's take this next level.

746
00:30:50.460 --> 00:30:52.540
So milestone, you know, it's a milestone for them.

747
00:30:52.540 --> 00:30:56.220
You're saying, let's capitalize on the momentum, like to keep the party going.

748
00:30:56.220 --> 00:30:59.660
The halfway point is what we position as a feedback meeting, which is like, Hey, we

749
00:30:59.660 --> 00:31:00.660
want to check in.

750
00:31:00.660 --> 00:31:02.300
We want to make sure that things are going all right.

751
00:31:02.300 --> 00:31:06.140
And the nice thing with the feedback meeting is that you have one of two options.

752
00:31:06.140 --> 00:31:10.540
So they're unhappy or they're happy.

753
00:31:10.540 --> 00:31:11.820
Here's the cool part.

754
00:31:11.820 --> 00:31:16.340
If you're unhappy, then it probably means that you need more help from us.

755
00:31:16.340 --> 00:31:20.820
So you should buy your other thing that has more help than the thing that you have.

756
00:31:20.820 --> 00:31:28.660
If you're happy, then if you like that, you're going to love this seriously.

757
00:31:28.660 --> 00:31:30.740
And then finally here was this last chance.

758
00:31:30.740 --> 00:31:32.980
So this is going to be the smallest percentage of sales.

759
00:31:32.980 --> 00:31:36.060
And so for many of you right now, this is where you try to do your ascensions.

760
00:31:36.060 --> 00:31:38.140
And the reason that you're not getting as many as you want is because you're waiting

761
00:31:38.140 --> 00:31:39.620
till here.

762
00:31:39.620 --> 00:31:41.820
You have like that is literally the last chance.

763
00:31:41.820 --> 00:31:43.540
You've already lost most people.

764
00:31:43.540 --> 00:31:48.340
So you want to you want to say there's these these buying windows that occur for a customer.

765
00:31:48.340 --> 00:31:54.700
And you want to present your offers at the point of greatest deprivation, not value.

766
00:31:54.700 --> 00:31:59.580
I'll say again, you want to present your offers at the point of greatest deprivation,

767
00:31:59.580 --> 00:32:01.540
not the point of greatest satisfaction.

768
00:32:01.540 --> 00:32:06.260
So if I walk into a restaurant and I'm starving and I say I want to stake, I eat the stake,

769
00:32:06.260 --> 00:32:08.420
waiter comes back and they're like, how's the stake?

770
00:32:08.420 --> 00:32:09.420
And I'm like, oh, it was delicious.

771
00:32:09.420 --> 00:32:10.420
Thank you so much.

772
00:32:10.420 --> 00:32:11.420
They're like, great.

773
00:32:11.420 --> 00:32:12.420
You want another steak?

774
00:32:12.420 --> 00:32:13.420
I'm like, no, no, I'm good.

775
00:32:13.420 --> 00:32:14.420
They're like, well, you don't like the steak?

776
00:32:14.420 --> 00:32:15.420
You're like, no, I love the steak.

777
00:32:15.420 --> 00:32:16.420
It was great.

778
00:32:16.420 --> 00:32:17.420
And they're like, why don't you know the steak?

779
00:32:17.780 --> 00:32:18.780
I'm good.

780
00:32:18.780 --> 00:32:19.780
I'm satisfied.

781
00:32:19.780 --> 00:32:20.780
It's I'm fine.

782
00:32:20.780 --> 00:32:22.660
And they're like, well, then why don't you don't like my restaurant?

783
00:32:22.660 --> 00:32:23.660
What's wrong with you?

784
00:32:23.660 --> 00:32:24.660
Right?

785
00:32:24.660 --> 00:32:25.660
And all of a sudden, it just seems weird.

786
00:32:25.660 --> 00:32:26.660
That's why you get these weird sales conversations.

787
00:32:26.660 --> 00:32:30.260
But if I wanted to sell two steaks, when the person walks in the door, I'm like, re-starving.

788
00:32:30.260 --> 00:32:31.260
They're like, dude, I'm famished.

789
00:32:31.260 --> 00:32:32.260
I'm like, cool.

790
00:32:32.260 --> 00:32:33.260
You want two steaks?

791
00:32:33.260 --> 00:32:35.260
That's when you sell two steaks.

792
00:32:35.260 --> 00:32:42.020
Now, once I have a stake, I'm satisfied with my stake, but I have some deprivation around

793
00:32:42.020 --> 00:32:43.020
sweets.

794
00:32:43.020 --> 00:32:44.860
And so I'm going to be like, ah, how's the steak?

795
00:32:44.860 --> 00:32:45.860
It was delicious.

796
00:32:45.860 --> 00:32:46.980
Really great with that.

797
00:32:46.980 --> 00:32:48.980
Our lovely flambé, right?

798
00:32:48.980 --> 00:32:53.300
Or I don't know what dessert name, ice cream and brownie, that, that, that's what goes

799
00:32:53.300 --> 00:32:54.300
well with this, right?

800
00:32:54.300 --> 00:32:55.300
You want one of those?

801
00:32:55.300 --> 00:32:56.300
Sure.

802
00:32:56.300 --> 00:32:57.300
You know what?

803
00:32:57.300 --> 00:32:58.300
I'll take two.

804
00:32:58.300 --> 00:32:59.300
So we want to make sure that we sell.

805
00:32:59.300 --> 00:33:03.340
And this is a huge misconception in the sales world is that they're like, sell the point

806
00:33:03.340 --> 00:33:05.020
of greatest value.

807
00:33:05.020 --> 00:33:08.540
Sometimes the point of greatest value creates deprivation for the next goal.

808
00:33:08.540 --> 00:33:12.380
So if I solve your leads problem, I'm going to create your lead nurture problem.

809
00:33:12.380 --> 00:33:15.940
And so it makes sense to then sell the next thing at that point.

810
00:33:15.940 --> 00:33:18.740
If the next thing I sell is lead nurture, not more leads.

811
00:33:18.740 --> 00:33:20.220
Does that make sense?

812
00:33:20.220 --> 00:33:21.220
Yes, sure.

813
00:33:21.220 --> 00:33:22.220
Okay.

814
00:33:22.220 --> 00:33:26.580
So for you, right now, it's going to probably be an ascension where you can have the quality

815
00:33:26.580 --> 00:33:28.540
upsell that you can immediately do.

816
00:33:28.540 --> 00:33:33.060
And then you basically make the ask at these different occasions and it's open-handed.

817
00:33:33.060 --> 00:33:35.700
So it's like, hey, long term, where do you see yourself?

818
00:33:35.700 --> 00:33:36.700
Cool.

819
00:33:36.700 --> 00:33:37.700
Sounds like you're ambitious.

820
00:33:37.700 --> 00:33:38.700
I think you might be a good fit.

821
00:33:38.700 --> 00:33:39.700
Can I set you up with?

822
00:33:39.700 --> 00:33:40.700
He's amazing.

823
00:33:40.700 --> 00:33:43.180
People who look just like you accomplish what you want.

824
00:33:43.180 --> 00:33:44.180
You'll love him.

825
00:33:44.180 --> 00:33:45.180
Yeah.

826
00:33:45.180 --> 00:33:48.420
And you will have the closer to jump on that call or because the thing is, you set it.

827
00:33:48.420 --> 00:33:50.180
You set it for the closer.

828
00:33:50.180 --> 00:33:51.180
Okay.

829
00:33:51.180 --> 00:33:54.460
The thing is that they only see the closer when they buy and the second time they're going

830
00:33:54.460 --> 00:33:55.460
to buy.

831
00:33:55.460 --> 00:33:57.260
So they are not in contact with them.

832
00:33:57.260 --> 00:34:01.580
So he feels like, I've tried to skin this a hundred ways this Sunday.

833
00:34:01.580 --> 00:34:08.460
And no, I have, I've tried every permutation of this and I've had everything work.

834
00:34:08.460 --> 00:34:10.660
So you just have different problems.

835
00:34:10.660 --> 00:34:15.500
You can have your kind of team of people who are doing the education, get trained on kind

836
00:34:15.500 --> 00:34:16.500
of the upsell.

837
00:34:16.500 --> 00:34:18.500
They're going to benefit from the fact they have more rapport, more trust.

838
00:34:18.500 --> 00:34:22.340
And they're going to talk to them more times where it's not a sales conversation.

839
00:34:22.340 --> 00:34:23.940
So that's one option.

840
00:34:23.940 --> 00:34:24.940
Second option.

841
00:34:24.940 --> 00:34:28.860
And this is my favorite of the options, but requires somebody with more talent is that

842
00:34:28.860 --> 00:34:31.700
you have one back end sales guy.

843
00:34:31.700 --> 00:34:36.020
And that guy's positioned as the master coach or whatever, the master educated, the level

844
00:34:36.020 --> 00:34:37.340
17.

845
00:34:37.340 --> 00:34:41.860
And so when they see that guy, he's so well positioned that he's like, Hey, I'm checking

846
00:34:41.860 --> 00:34:42.860
in on the team.

847
00:34:42.860 --> 00:34:43.940
I want to make sure that they're doing a good job.

848
00:34:43.940 --> 00:34:44.940
How's everything going?

849
00:34:44.940 --> 00:34:45.940
Great.

850
00:34:45.940 --> 00:34:49.140
And then that guy has the position to just close everybody.

851
00:34:49.140 --> 00:34:50.940
And it doesn't feel weird.

852
00:34:50.940 --> 00:34:51.940
Okay.

853
00:34:51.940 --> 00:34:54.180
I have done the front end sales guy talks to you again.

854
00:34:54.180 --> 00:34:57.580
And I also still had that work, but it's a little bit more sales heavy.

855
00:34:57.580 --> 00:35:03.100
And so I would, I would prefer if I were you, I would probably find if you have one guy

856
00:35:03.100 --> 00:35:05.980
who's like the best guy, what happens is you've got all these leads that funneled

857
00:35:05.980 --> 00:35:09.540
the front end closers and then the people who do the delivery, then funneled them to one

858
00:35:09.540 --> 00:35:10.540
guy.

859
00:35:10.540 --> 00:35:13.540
And so you only need like one given the fact that they're not working, leaves the working

860
00:35:13.540 --> 00:35:14.540
customers.

861
00:35:14.540 --> 00:35:18.220
So they're for you to actually book out somebody who's one guy, you're going to be doing

862
00:35:18.220 --> 00:35:19.220
20 million here.

863
00:35:19.220 --> 00:35:20.220
Does that make sense?

864
00:35:20.220 --> 00:35:21.220
Yeah.

865
00:35:21.220 --> 00:35:22.220
It makes a lot of sense.

866
00:35:22.220 --> 00:35:26.980
Only one question about the milestone because like what we do is basically like a fitness

867
00:35:26.980 --> 00:35:32.660
program where they want to get to a huge goal and they accomplish the first milestone.

868
00:35:32.660 --> 00:35:37.780
And what we offer is kind of the same thing, you know, but at that point when they reach

869
00:35:37.780 --> 00:35:42.860
the first milestone that you will only go and try to upgrade in something like more quality,

870
00:35:42.860 --> 00:35:43.860
but the same.

871
00:35:43.860 --> 00:35:44.860
Yeah.

872
00:35:44.860 --> 00:35:45.860
Yeah.

873
00:35:45.860 --> 00:35:46.860
Yeah.

874
00:35:46.860 --> 00:35:47.860
More quality.

875
00:35:47.860 --> 00:35:48.860
Perfect.

876
00:35:48.860 --> 00:35:49.860
Thank you, Alex.

877
00:35:49.860 --> 00:35:50.860
Yeah, you bet.

878
00:35:50.860 --> 00:35:51.860
Hi, I'm Jacqueline.

879
00:35:51.860 --> 00:35:52.860
I know we talked about dentists.

880
00:35:52.860 --> 00:35:53.860
Yes.

881
00:35:53.860 --> 00:35:57.500
Three million, five percent profit margins, you have five different ones, three or part

882
00:35:57.500 --> 00:35:58.500
time.

883
00:35:58.500 --> 00:35:59.500
Perfect.

884
00:35:59.500 --> 00:36:00.500
Well, great memory.

885
00:36:00.700 --> 00:36:01.700
Yeah, you're in Dallas.

886
00:36:01.700 --> 00:36:02.700
It's 30 year old business.

887
00:36:02.700 --> 00:36:03.900
I'm in here to from your father.

888
00:36:03.900 --> 00:36:04.900
Yes.

889
00:36:04.900 --> 00:36:05.900
Yep.

890
00:36:05.900 --> 00:36:06.900
And my social security number.

891
00:36:06.900 --> 00:36:07.900
Just carry it.

892
00:36:07.900 --> 00:36:09.300
I can put it up.

893
00:36:09.300 --> 00:36:14.100
So I know we talked, yes, last night, which you obviously remember, and a couple other people

894
00:36:14.100 --> 00:36:19.860
from your team, we talked about this issue that my number one constraint probably isn't

895
00:36:19.860 --> 00:36:23.500
our cancellation rate, but it is something that I'm like really privileged about and want

896
00:36:23.500 --> 00:36:28.500
to at least go back with a little bit of something to share with my team about.

897
00:36:28.500 --> 00:36:29.500
Sure.

898
00:36:29.500 --> 00:36:33.980
So our cancellation rate is a little over 30 percent.

899
00:36:33.980 --> 00:36:37.980
And this past year, we've lost like a million dollars because people made appointments

900
00:36:37.980 --> 00:36:40.340
confirmed them and they didn't show up.

901
00:36:40.340 --> 00:36:46.060
So if you have any insight on what we could do to start improving that, I would be really

902
00:36:46.060 --> 00:36:47.060
helpful.

903
00:36:47.060 --> 00:36:48.060
Yes.

904
00:36:48.060 --> 00:36:50.740
I don't think it's the constraint of your business.

905
00:36:50.740 --> 00:36:56.700
So number one is you are going to want to make sure that the, I'm absolutely like that

906
00:36:56.700 --> 00:36:59.020
time is the right time for them.

907
00:36:59.020 --> 00:37:02.940
And we ask questions like, is there anything that will possibly get in the way of you showing

908
00:37:02.940 --> 00:37:03.940
up for your meeting?

909
00:37:03.940 --> 00:37:06.020
And so we call this an integrity tie down.

910
00:37:06.020 --> 00:37:10.180
And so after you get a time slot, you want to ask that right afterwards because it like

911
00:37:10.180 --> 00:37:13.660
gets, like shakes them out of their like mind for whatever reason it works.

912
00:37:13.660 --> 00:37:16.980
So I could come up with some narrative for it, but it works.

913
00:37:16.980 --> 00:37:20.740
Number two is, I think I mentioned this yesterday, but I think it might be worth considering

914
00:37:20.740 --> 00:37:22.780
pulling up appointments.

915
00:37:22.780 --> 00:37:29.140
Like to basically, can we bring them up sooner so that we have increased shock rates?

916
00:37:29.140 --> 00:37:34.180
The next one is, let's see here, you want to make sure that you have automated reminders

917
00:37:34.180 --> 00:37:38.660
which you probably do, but then you want to have manual reminders on top of that.

918
00:37:38.660 --> 00:37:43.180
So if you have, I would have an office iPhone and you want to send manual texts at three

919
00:37:43.180 --> 00:37:44.180
times.

920
00:37:44.180 --> 00:37:48.380
So you want to send the manual text at 24 hours, so basically think night before.

921
00:37:48.380 --> 00:37:50.900
And text is going to be morning off.

922
00:37:50.900 --> 00:37:54.260
And then the third text is going to be 60 to 90 minutes prior, basically when they have

923
00:37:54.260 --> 00:37:58.780
to like get your shit together, get in the car and it's three within 24 hours.

924
00:37:58.780 --> 00:37:59.780
And those are manuals.

925
00:37:59.780 --> 00:38:03.300
You want those to be blue iPhone messages if possible.

926
00:38:03.300 --> 00:38:09.180
Now ideally, we like to have some sort of selection that they pick that we have, like

927
00:38:09.180 --> 00:38:10.660
some cost we have incurred.

928
00:38:10.660 --> 00:38:13.740
So this works exceptionally well for brick and mortar, so I'm sharing it with you.

929
00:38:13.740 --> 00:38:19.100
And so in the gym space, obviously, like we would say, hey, Sharon, I've got this

930
00:38:19.100 --> 00:38:23.820
shirt, tell me what size you're at and I'll pull it aside for you.

931
00:38:23.820 --> 00:38:26.260
And so when you come here, I'll give it to you.

932
00:38:26.260 --> 00:38:29.380
Or it's like, do you want red or do you want blue?

933
00:38:29.380 --> 00:38:32.780
Like just do some sort of A, B ask for them.

934
00:38:32.780 --> 00:38:36.220
And so it could be as simple as like, you're going to, you're going to pull, I mean, because

935
00:38:36.220 --> 00:38:37.220
it's the dentist office, right?

936
00:38:37.220 --> 00:38:38.660
And so you're like, okay, what can I give them?

937
00:38:38.660 --> 00:38:41.060
Well, I always get free shit when I go to this office.

938
00:38:41.060 --> 00:38:45.380
And so just like have them pick the free stuff that you put in their goodie bag and just,

939
00:38:45.380 --> 00:38:48.620
and then I would send them a picture with their name on it so that they're like, oh, man,

940
00:38:48.620 --> 00:38:50.700
they incurred this cost just for me.

941
00:38:50.700 --> 00:38:54.060
I have to show up now, right?

942
00:38:54.060 --> 00:38:59.020
So that's another one, the, okay, we got that because you're having the issue because

943
00:38:59.020 --> 00:39:02.900
someone books and like six months later is their cleaning or whatever, right?

944
00:39:02.900 --> 00:39:04.540
That's the problem here.

945
00:39:04.540 --> 00:39:05.540
Yeah.

946
00:39:05.540 --> 00:39:09.860
Well, we call and confirm their appointment a week in advance and then we call and remind

947
00:39:09.860 --> 00:39:14.580
them again, three days in advance, and then we call them and text them again a day before.

948
00:39:14.580 --> 00:39:15.980
And they'll say, yeah, I'm going to be there.

949
00:39:15.980 --> 00:39:19.580
And then two o'clock comes and they don't think that you're, you're reminding too far out.

950
00:39:19.580 --> 00:39:24.380
Like if, if, if I schedule an appointment on Saturday Monday morning is a different universe

951
00:39:24.380 --> 00:39:25.380
for me.

952
00:39:25.380 --> 00:39:26.380
Yeah.

953
00:39:26.380 --> 00:39:27.380
No, I'm just being like super real.

954
00:39:27.380 --> 00:39:29.340
And so I think, I think a lot of people were that way.

955
00:39:29.340 --> 00:39:34.660
And so all of the many reminders are like, if you want to, like, I use the automated ones

956
00:39:34.660 --> 00:39:39.140
for the far out, like, hey, you're seven days away, hey, you're three days away, but

957
00:39:39.140 --> 00:39:44.460
I would have the ones that you're putting the real effort in 24 morning and right before.

958
00:39:44.460 --> 00:39:45.460
Okay.

959
00:39:45.460 --> 00:39:48.180
And then have the incentive, have the personalization.

960
00:39:48.180 --> 00:39:50.820
And I will bet you dollars to donate so that on its own would work.

961
00:39:50.820 --> 00:39:51.820
Okay.

962
00:39:51.820 --> 00:39:52.820
Awesome.

963
00:39:52.820 --> 00:39:53.820
Thank you so much.

964
00:39:53.820 --> 00:39:54.820
I really appreciate it.

965
00:39:54.820 --> 00:39:55.820
No, you bet.

966
00:39:55.820 --> 00:39:56.820
Hi.

967
00:39:56.820 --> 00:39:57.820
Thank you so much for all your content you make.

968
00:39:57.820 --> 00:40:01.660
My name is Lorianne and I sell personal finance courses and coaching to women.

969
00:40:01.660 --> 00:40:06.060
We do thirty four women for women for women, ah, with the plus sun.

970
00:40:06.060 --> 00:40:07.060
Like through the guys.

971
00:40:07.060 --> 00:40:08.060
Can you save money?

972
00:40:08.060 --> 00:40:09.380
You know, they can learn from someone else.

973
00:40:09.380 --> 00:40:10.380
I'm messing.

974
00:40:10.380 --> 00:40:13.700
So we do 30 million in revenue at end.

975
00:40:13.700 --> 00:40:14.700
Thank you.

976
00:40:14.700 --> 00:40:18.580
I would like to be at, I don't know revenue, which comes to my question.

977
00:40:18.580 --> 00:40:19.580
That's right.

978
00:40:19.580 --> 00:40:27.180
And what is stopping me is our CAC TV ratio, both CAC is too high, got the team working

979
00:40:27.180 --> 00:40:30.380
on volume right now, LTV is too low.

980
00:40:30.380 --> 00:40:31.380
Okay.

981
00:40:31.380 --> 00:40:35.140
And AOV is too low on our front end.

982
00:40:35.140 --> 00:40:38.580
So I think it's actually a cash flow.

983
00:40:38.580 --> 00:40:43.180
She's straight potentially, but I'm a little, I'm a little confused on where like exactly

984
00:40:43.180 --> 00:40:44.180
to go to work.

985
00:40:44.180 --> 00:40:45.180
Okay.

986
00:40:45.180 --> 00:40:46.940
How do you carve questions right now?

987
00:40:46.940 --> 00:40:47.940
Primarily meta.

988
00:40:47.940 --> 00:40:48.940
So it's all paid ads?

989
00:40:48.940 --> 00:40:49.940
Yeah.

990
00:40:49.940 --> 00:40:50.940
Okay.

991
00:40:50.940 --> 00:40:51.940
So all paid ads and you're running to what?

992
00:40:51.940 --> 00:40:52.940
Webinar, 2K Webinar.

993
00:40:52.940 --> 00:40:53.940
Okay.

994
00:40:53.940 --> 00:40:55.980
Are you, are you, are you have a lid to get offered for the Webinar?

995
00:40:55.980 --> 00:40:58.620
Are you charging like something is like a self-lippinating offer on the front?

996
00:40:58.620 --> 00:40:59.620
Free Webinar.

997
00:40:59.620 --> 00:41:00.620
No.

998
00:41:00.700 --> 00:41:03.540
So free Webinar on the front end, you have a 2,000 more offer, okay?

999
00:41:03.540 --> 00:41:04.540
Yeah.

1000
00:41:04.540 --> 00:41:05.540
Then what?

1001
00:41:05.540 --> 00:41:10.220
$2,000 or 12 month payment plan for $200 a month, which is why our AOV is like $900.

1002
00:41:10.220 --> 00:41:11.220
Right.

1003
00:41:11.220 --> 00:41:12.220
Got it.

1004
00:41:12.220 --> 00:41:17.060
And then acquisition costs like $1,500 on the client and then we have a back end.

1005
00:41:17.060 --> 00:41:18.060
Bye.

1006
00:41:18.060 --> 00:41:21.460
That's 10K has a 7% upgrade rate.

1007
00:41:21.460 --> 00:41:22.460
Yeah.

1008
00:41:22.460 --> 00:41:27.300
It's low outsourced sales team right now and so LTV is like 2400.

1009
00:41:27.300 --> 00:41:28.300
Yeah.

1010
00:41:28.300 --> 00:41:29.300
That's a problem.

1011
00:41:29.300 --> 00:41:30.300
Yes.

1012
00:41:31.300 --> 00:41:32.780
That's why I'm here.

1013
00:41:32.780 --> 00:41:33.780
Yeah.

1014
00:41:33.780 --> 00:41:34.740
No, your century is too low.

1015
00:41:34.740 --> 00:41:38.180
You will probably have to bring the sales team in house if you want to really fix it.

1016
00:41:38.180 --> 00:41:40.620
It's very hard to influence the team.

1017
00:41:40.620 --> 00:41:44.380
You'll want the ascension to be integrated into the onboarding.

1018
00:41:44.380 --> 00:41:46.900
And so you sell the 2,000 or a thing.

1019
00:41:46.900 --> 00:41:48.140
You have your onboarding call.

1020
00:41:48.140 --> 00:41:52.500
The onboarding call, the finish of the onboarding call is they set their goal setting

1021
00:41:52.500 --> 00:41:58.260
call with what would become a setter and then that setter sets for a closer.

1022
00:41:58.260 --> 00:41:59.900
So they actually get three calls.

1023
00:41:59.900 --> 00:42:03.860
So they have webinar by they have an actual onboarding call because you want them like you

1024
00:42:03.860 --> 00:42:07.940
want to make sure you deliver one on one or that's a group one minute you can do well.

1025
00:42:07.940 --> 00:42:11.220
You can start with a group.

1026
00:42:11.220 --> 00:42:14.820
You can start with group and then you will make more money if you go to one on one.

1027
00:42:14.820 --> 00:42:19.020
It is more ops but like we actually did this and I have a video that breaks down everything

1028
00:42:19.020 --> 00:42:20.020
that you need to know.

1029
00:42:20.020 --> 00:42:21.020
Yeah.

1030
00:42:21.020 --> 00:42:22.020
Okay.

1031
00:42:22.020 --> 00:42:23.020
Yeah.

1032
00:42:23.020 --> 00:42:26.380
And so one on one is better but if you're going to start start the group and they're way

1033
00:42:26.380 --> 00:42:29.540
of getting off the call like saying like, okay, you're dismissed.

1034
00:42:29.540 --> 00:42:33.100
Is that you show me that you have confirmed your booking with your next call?

1035
00:42:33.100 --> 00:42:35.940
So that way you have 100% through through line to the next.

1036
00:42:35.940 --> 00:42:36.940
Now they're customers.

1037
00:42:36.940 --> 00:42:38.020
They're going to show up.

1038
00:42:38.020 --> 00:42:42.740
The goal setting call basically sifts for who he like what's your goal?

1039
00:42:42.740 --> 00:42:43.740
Cool.

1040
00:42:43.740 --> 00:42:44.740
What's that?

1041
00:42:44.740 --> 00:42:48.140
It basically just do another sales call again and then you push people into the once

1042
00:42:48.140 --> 00:42:49.140
you can afford it.

1043
00:42:49.140 --> 00:42:53.860
That makes sense into a close call with basically an invitation to join something that

1044
00:42:53.860 --> 00:42:56.540
has more help or work associated.

1045
00:42:56.540 --> 00:42:57.540
Yes.

1046
00:42:57.540 --> 00:42:58.540
Okay.

1047
00:42:58.540 --> 00:42:59.540
Great.

1048
00:42:59.540 --> 00:43:00.540
You'll probably need to get third party financing in place.

1049
00:43:00.540 --> 00:43:01.540
Oh.

1050
00:43:01.540 --> 00:43:02.540
Yeah.

1051
00:43:02.540 --> 00:43:03.540
On for the sales calls.

1052
00:43:03.540 --> 00:43:04.540
Yeah.

1053
00:43:04.540 --> 00:43:05.540
And front end.

1054
00:43:05.540 --> 00:43:07.220
Like you should definitely have some BNPL option.

1055
00:43:07.220 --> 00:43:08.220
So buy no pay later.

1056
00:43:08.220 --> 00:43:09.220
You probably have a few.

1057
00:43:09.220 --> 00:43:10.220
Okay.

1058
00:43:10.220 --> 00:43:11.220
We have money back in.

1059
00:43:11.220 --> 00:43:12.220
We don't have one on the front end.

1060
00:43:12.220 --> 00:43:13.220
Yeah.

1061
00:43:13.220 --> 00:43:16.460
Also with the webinar, I would recommend split testing the first five minutes.

1062
00:43:16.460 --> 00:43:22.780
So retest two or three different intros and look at LTV that will make you money.

1063
00:43:23.740 --> 00:43:26.500
But the biggest issue is that you're you're up selling seven percent.

1064
00:43:26.500 --> 00:43:30.900
Like you need to be at you want to be at at least 25 and you should shoot for 50.

1065
00:43:30.900 --> 00:43:31.900
Okay.

1066
00:43:31.900 --> 00:43:32.900
Okay.

1067
00:43:32.900 --> 00:43:37.060
And so just one more question as that's like a longer term solution, right?

1068
00:43:37.060 --> 00:43:38.060
That's going to bring in a sales team.

1069
00:43:38.060 --> 00:43:41.020
You need to bring a sales team in house and really optimize that process.

1070
00:43:41.020 --> 00:43:42.020
Yeah.

1071
00:43:42.020 --> 00:43:43.740
Why does that have to be a long term?

1072
00:43:43.740 --> 00:43:48.420
Just a time it will take to find a sales leader and recruit and like shift leads from

1073
00:43:48.420 --> 00:43:49.420
the.

1074
00:43:49.420 --> 00:43:54.420
One person, really good sales director and then you hire six recruiting firms that do

1075
00:43:54.420 --> 00:43:58.300
sales and say I need 10 guys from each of you and you can add a 60 person team in four

1076
00:43:58.300 --> 00:43:59.420
like two weeks.

1077
00:43:59.420 --> 00:44:00.420
Okay.

1078
00:44:00.420 --> 00:44:01.420
Okay.

1079
00:44:01.420 --> 00:44:03.660
We just added 40 guys in two weeks to work.

1080
00:44:03.660 --> 00:44:04.660
What?

1081
00:44:04.660 --> 00:44:07.740
You just paid a bunch of work like if we're doing that kind of volume, we're just going

1082
00:44:07.740 --> 00:44:11.260
to go to somebody who has a big network of people that they're that's their full-time

1083
00:44:11.260 --> 00:44:12.460
business recruiting sales guys.

1084
00:44:12.460 --> 00:44:13.460
That's like great.

1085
00:44:13.460 --> 00:44:15.380
These are requirements.

1086
00:44:15.380 --> 00:44:16.380
Go get them.

1087
00:44:16.380 --> 00:44:17.380
Yeah.

1088
00:44:17.380 --> 00:44:18.380
And I'm willing to pay for the speed.

1089
00:44:18.380 --> 00:44:21.260
It's and you can also negotiate if you're doing multiple like the same of multiple.

1090
00:44:21.260 --> 00:44:25.460
So it's like, Hey, normally, you know, it's 10 grand per per head, I'm going to buy

1091
00:44:25.460 --> 00:44:26.460
20 from you.

1092
00:44:26.460 --> 00:44:28.500
So I'll do it for five.

1093
00:44:28.500 --> 00:44:29.500
Okay.

1094
00:44:29.500 --> 00:44:31.300
To pay 100 grand, all of a sudden you have an apartment.

1095
00:44:31.300 --> 00:44:32.300
Okay.

1096
00:44:32.300 --> 00:44:33.300
Cool.

1097
00:44:33.300 --> 00:44:37.100
So action on that immediately and then while we're doing the recruiting and getting that

1098
00:44:37.100 --> 00:44:41.540
person up to speed, just keep spending basically as much as we can afford to spend on the

1099
00:44:41.540 --> 00:44:44.740
front end to keep like lead flow coming into the back.

1100
00:44:44.740 --> 00:44:51.740
Technically, if you spend less, you will typically row as well increase, typically YouTube's not

1101
00:44:51.740 --> 00:44:53.420
that way, though, kind of random.

1102
00:44:53.420 --> 00:44:54.860
The more you spend, the more profitable it gets.

1103
00:44:54.860 --> 00:44:55.860
It's wild.

1104
00:44:55.860 --> 00:44:56.860
Yeah.

1105
00:44:56.860 --> 00:44:57.860
It's shit.

1106
00:44:57.860 --> 00:45:01.820
Anyways, but all that to say, like if you have a cash flow issue right now or like, you

1107
00:45:01.820 --> 00:45:06.660
know, it's like it's self-inflicted, like you can just spend less and improve the, improve

1108
00:45:06.660 --> 00:45:07.660
the returns.

1109
00:45:07.660 --> 00:45:12.900
But your CAC is appropriate, $1,500 to our customer in that case.

1110
00:45:12.900 --> 00:45:13.900
Yeah.

1111
00:45:13.900 --> 00:45:18.700
It's like you're not going to, like, you're not going to get below $1,000.

1112
00:45:18.700 --> 00:45:23.860
And so this is a back end issue, like you just have to increase the essentially rate.

1113
00:45:23.860 --> 00:45:24.860
And that's it.

1114
00:45:24.860 --> 00:45:25.860
Okay.

1115
00:45:25.860 --> 00:45:26.860
Thank you.

1116
00:45:26.860 --> 00:45:27.860
You got it.

1117
00:45:27.860 --> 00:45:28.860
Awesome.

1118
00:45:28.860 --> 00:45:29.860
Okay.