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Welcome to another special edition 100 million dollar leads audiobook podcast

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collaboration self-looking ice cream cone me working with me handshaking myself

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promoting this book for free on my podcast so if me being an affiliate of

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myself today we talk about affiliates and partners it's going to be a heater

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episode this is 35 minutes one single chapter and then we have a section

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conclusion which you will definitely enjoy because if this if you've been

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watching this or listening to this a few weeks apart then you'll want to have

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the recap so you can put it all together in your head into one simple framework

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but today with affiliates I'm gonna be talking about how you picked the right

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affiliates what kind of offer to make them how to get them advertising how to

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keep them advertising and the many lessons I've learned along the way to doing

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over 75 million dollars in sales not spending a dollar of advertising on my

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own but letting other people advertise for me hope you enjoy affiliates and

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partners nothing makes friends like money December 1st 2018 I had no idea how

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the prestige labs launch would go I had no idea for clients would like it I had

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no idea if the technology we built would work I had no idea if payouts would

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happen on time I had no idea of our warehouse would mess up orders but I did

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know over a year of preparation went into this launch we put everything we

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had into creating a top-tier product we spent over a million dollars custom

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building affiliates offer and training and we bought three million dollars of

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inventory for sales that may never happen it took every business skill I had to

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make prestige labs real and in just a few hours we would roll it out to our gym

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owner affiliates I felt like a kid on Christmas Eve and if it didn't work it

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wouldn't be for lack of effort author note the game podcast episode 98 titled

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I remember if you want to go back in time you can hear young me talk about my

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thoughts and concerns the night before the launch you can be right there with me

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it's episode 98 on my podcast the game with Alchemy I titled it I remember this

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is before I knew the success it would become to find it just go wherever you

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listen to podcasts and search Alex Ramose it'll come up launch day I finished

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the two-hour presentation soaked in sweat it's done I sold the opportunity to sell

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my supplement line at their gyms I would train the new affiliates to promote

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prestige labs at their gyms so for this to work they would have to go through

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the training and use it but if they did everyone would profit I had no idea if

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it would work three weeks later we made a hundred fifty thousand dollars in

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total sales meanwhile three million dollars of the product sat in air

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condition warehouse it didn't work at this rate including operating costs and

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affiliate paths it would take five years to break even even if we could stick

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it out our premium product would expire well before then we were all but

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screwed I thought miserable it was terrible whom I'd think we would sell that

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stuff I just wasted millions how could I be so stupid but on the fourth week

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something wild happened boom a hundred grand on a Monday boom a hundred ten

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thousand on a Tuesday boom ninety two thousand on a Wednesday we did over

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four hundred fifty thousand in sales the fourth week alone the trend

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continued four hundred twenty nine thousand three hundred eighty three thousand

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four hundred eleven thousand four hundred fifty two thousand we have it

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more than three hundred orders per day across four hundred plus active

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affiliates orders just kept coming in check out the snapshot of our internal

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report below it shows from left to right revenue by week I couldn't believe

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the result sometimes I still can't for everyone listening it was four twenty nine

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three eighty three four eleven four four fifty two in terms of revenue per week

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through this launch the best part is I didn't advertise or sell any of the

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products at all no paid ads no sales teams nothing the affiliates did

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everything and the affiliate machine I built still prints money this day so

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that sounds like something you're interested in hang tights a machine you

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exactly how I built it how affiliates work an affiliate is a lead getter they

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are independent business that tells their audience to buy your stuff affiliate

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seem like referrals on the outside but are much different under the hood first

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they have their own business into their own advertising second they agreed

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offer your stuff to their engaged leads in exchange for money free stuff or

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both now you get affiliates by advertising and then making them offers just

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like you would customers but affiliates demand a unique type of offer instead of

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offering your product you offer a fast simple and easy way to make

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commissions promoting it and that can mean literally millions of engage leads

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to your business so this makes affiliates one of the highest leverage lead

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getters out there why you want an affiliate army each of you get adds another

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stream of leads and customers so recruiting activating and then integrating

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with an army affiliates causes crazy scaling fast that's good we want that

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compare these two scenarios scenario number one you sell 10 customers per month

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worth $10,000 each your business caps at $100,000 per month in 12 months you've

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made 1.2 million assuming no other advertising your business plot toes low

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leverage scenario two for the same effort you sell 10 affiliates per month

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each month those affiliates bring one of those $10,000 customers now every

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single month you add an extra $100,000 in revenue in 12 months you've made

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$7.8 million and it grows every month thereafter same work more money high

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leverage let's use Alan my software company I grew with affiliates to show

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how this works in the real world Alan grew with three levels of affiliates

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agency superfiliates who brought agency leads agencies who brought local

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business leads local businesses who brought in and consumer leads one super

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affiliate added 10 agencies per month the 10 agencies brought in a combined

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50 or so local businesses per month those local businesses brought in a

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combined 2500 leads per month Alan worked those leads for about five bucks a

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pop a cool $12,500 per month but it didn't stop there each super affiliate

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brought in more agencies who brought in more local businesses who bought in more

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leads every month after that so every super affiliate we signed on brought in

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12,500 the first month 25,000 the second month 37,500 the third and so on with

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only a few agency super affiliates we scaled to $1.7 million per month within

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six month of launching that's why you want an affiliate army so let's build

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one how to build an affiliate army in six steps affiliates are among the most

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advanced way to get leads first you have to convince them to advertise someone

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else's stuff second you have to convince them to advertise your stuff third you

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have to keep them advertising to make them a long-term lead source it seems like

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a lot and it is but I have good news I built two companies with affiliates

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Alan and prestige labs together they've done more than 75 million in revenue

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from five thousand affiliates and the affiliate strategies I share work for me

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so they can work for you I'll break down each step step one find your ideal

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affiliates step two make them an offer step three qualify them step four figure

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out to pay them step five get them advertising step six keep them

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advertising that's it let's dive in step one find your ideal affiliate the ideal

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affiliate has a business with a warm audience full of people like your

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customers start making a list of those businesses if none come to mind answer

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these questions about your best customers what do they buy who provides that

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stuff where did they go what businesses are in those surrounding areas what

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do they like to do who provides those services if direct to consumer the

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employees of your consumers could also make great affiliates what type of

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businesses do they work for what kind of jobs do they have in a nutshell who's

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got my leads for example when I started Alan agency owners were my ideal

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affiliate so I made a list of 200 products and services for agencies and the

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businesses that deliver them after a little bit of work I realized they fit

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pretty neatly into categories software's products equipment services groups

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they belong to and events they attended every time I create a new affiliate

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hit list I start with these categories note if you find a business that falls

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into multiple categories there's a high chance they've got a lot of good

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leads for you now that I know the businesses that had my leads I knew exactly

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where to put my advertising efforts it wasn't fancy so don't ever think it

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action step make a sheet with each of the questions and categories search online

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to fill it in if you struggle call up your customers and ask them and result

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create a lead list of your highest potential affiliates step two make them

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an offer we make the affiliate offer and advertise it the same way we would

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any other offer we call out our audience show our value elements then call

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them to action but affiliates will only sign up if we give them a strong reason

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thankfully it's pretty simple since affiliates are businesses or start

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businesses by signing up you offer them a new way to make money we'll start

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with the call out call out call out for potential affiliates often include the

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affiliate business owners themselves aka attention spot owners the affiliates

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customers aka do you work with busy professionals who spend all day in meetings

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results the affiliate businesses promise aka to the heroes who heal the

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stress of others products and services the affiliates deliver if you sell

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lotions or scented oils this is for you to our own customers do you know anyone

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who owns a spa now that we can grab a potential affiliate's attention let's

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make it worth a while elements of value there's an unlimited number of ways to

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show value but all money making offers follow a similar structure that's good

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news we don't need to reinvent the wheel most affiliate money making offers

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show value like this make more money from your current customers and get more

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leads than your current offer dream outcome with a high chance of working

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since your customers already want the product perceive likely to

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achievement without needing to build deliver or provide customer support for

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the product itself effort and sacrifice so you can start selling it tomorrow

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time delay action step explore the different value of months and fill in

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the blanks I won't go deeper on this since we've covered already you simply

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need to make affiliates the customer you're advertising to now that we've

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got the potential affiliates interested in our offer let's qualify them step

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three qualify them potential affiliates become actual affiliates when they

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understand and agree to your terms and just like customers we want to get

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them their first win as fast as possible so we set up our terms to force them

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to win as fast as possible I do that by getting them to invest I prefer they

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invest their time their money and in the product itself any can work but nine

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times at a 10 if they pay they'll pay attention here are the two ways I get my

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fields invested and winning make them a customer and make them an expert let's

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dive into each way number one make them a customer make them buy and

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preferably use the product to keep affiliate status this is the lowest

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barrier investment that's worked for me I found the more money and affiliate

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investing your product the more money they make this should make sense if they

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don't believe in your stuff enough to buy it they probably shouldn't sell it

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you can tell them I said so pro tip bulk purchases if you need to make more

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money for affiliate you can acquire them to buy them bulk this was huge for

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prestige labs affiliate success once they bought a big package up front they

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started falling through and winning more the bigger investment also need them

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and us more money if you have physical products then try bulk purchases if your

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company has a line of products like prestige labs does then toy around with

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different big bundles here's how you phrase the offer so you want anything

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extra you just want the minimum order by presenting a minimum purchase they

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will at least buy that and more often than you think they'll buy more than

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the minimum bottom boom wait number two make them an expert I make them pay for

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the onboarding and training that certifies them as a product expert if you have

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them buy a product become an affiliate you can have them use that as a credit

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certification as in the certification comes with the products they bought now

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aside from actually making the affiliate useful certifying them does two

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things first it covers the cost of advertising second it means I can afford

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proper onboarding and training of every single affiliate how much do I charge

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I recommend 10 to 20% of what the average affiliate makes in the first 12

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months so if your average affiliate makes 40 thousand dollars per year selling

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your stuff then charge four to eight thousand dollars to onboard and trade

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them too low and you won't get them invested too high and you won't get enough

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affiliates I found 10 to 20% maximize the number of people who become active

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affiliates if you're just getting started and have physical products then use the

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bulk purchasing strategy from the project otherwise you can use the strategy for

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more reach out chapter and raise the minimum investment every five signups

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until you hit the sweet spot action step make your affiliates customers experts

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or both which is my favorite way if you don't get enough people to start

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lower the commitment if you don't get enough people to follow through raise it

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step four figure out what to pay them the first biggest problem to solve with

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affiliates is getting them bought in but the second biggest problem is how to

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keep them bought in and no matter how you slice it keeping your affiliates

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bought in depends on how you reward them for advertising your stuff I prefer to

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reward people that do things I like with money and free stuff especially if they

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make me money first so let's talk about that when I figure out ways to pay

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affiliates I look at two basic things one would they get paid for two how much they

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get paid number one would they get paid for before I do any affiliate payout

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money math I ask myself a simple question what exactly do I want the

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affiliate to do once I figured that out that is what I pay them for then more

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often than not how much they get paid and how often they get paid nearly solve

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themselves I pay affiliates for two basic things new customers and repeat

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customers over time if you track your metrics better you can pay them for steps

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before someone becomes a customer like for lead meetings downloaded appointment

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set or anything else you know reliably turns into sales for you number two how

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much they get paid I suggest paying affiliates based on your maximum allowable

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cost to acquire customer for example choosing your maximum allowable

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kick let's say we sell a single use product for two hundred dollars and it

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costs forty dollars of a fill this gives us one hundred sixty dollars to pay

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the affiliate and run the business if we want an LGP to crack ratio of three to

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one then three parts go to the business one hundred twenty dollars and one

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part forty dollars goes to the affiliate this means we will pay up to forty

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dollars for an affiliate to get a new customer but here's where things get

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interesting I used to give away the farm the whole pack I suppose I still do

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but I got pick here about who I give it to not all affiliates are created

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equal so I suggest having a three-tier payout structure using the example

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above with a forty dollar maximum allowable pack a three-tier payout

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structure might look something like this tier one twenty five percent

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cat equals ten dollar payout anyone who agrees to my initial terms would

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qualify example they sign up and by products or certification tier two fifty

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percent cat equals twenty dollar payout once they activate example actually

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finishing the certification they bought doing a specific number of posts

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and outreach doing a launch etc this gives a nice reward twice the pay for

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activating tier three one hundred percent of cat equals a forty dollar payout

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they qualify for this once they sustain a certain level of performance

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example they maintain five customers per month on subscription this tiered

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method also has a hidden and very profitable side effect the average payout is

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much less than your maximum allowable cat this means if we leave the maximum

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payouts for top affiliates then we get to keep the leftover profit from the

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others we can use the left over money to run huge contests advertise to get

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more affiliates incentivize rising stars etc or I suppose we can just plain

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pocket it for example if twenty percent of sales come from tier one twenty percent

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from tier two and sixty percent from tier three your blended payout is thirty

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dollars instead of your maximum allowable cat a forty dollars this means your

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LTP to cat ratio just one from three to one to four to one and often cutting

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marketing costs by thirty three percent can translate into a ten to twenty

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percent increase in net profit at the end of the year a massive jump pro tip pay

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with product if possible sell three get it free everyone likes free stuff

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often more than what it would cost them to get it rewarding performance with

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product is a cheap and effective way to keep them winning they value it at

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retail but it only cost you your cost a nice arbitrage of value set sales

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tiers and bonus your affiliate with product or credit toward the retail cost

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at lower tiers you can even compensate exclusively with free stuff for

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example if your affiliate sends you tons of massage clients it's totally

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acceptable to reward your fillets with free massages at low volume a massage is

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often worth more to them than sending them a check for thirty dollars your

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cost but as affiliate send you more customers they'll usually opt for more

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money after all caching and a hundred massages becomes unrealistic at prestige

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labs offered anyone who sold more than three packages per month a free two

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hundred dollar bundle of their choosing this also made every affiliate a

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sponsored athlete they got free products for life as long as they kept three

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clients per month buying I called it sell three to get it free action step figure

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out what you want to pay affiliates for so you can plan out how much to pay

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them with what and how often step five get them advertising launch like

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refers how much value affiliates get from you determines how much they

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advertise your stuff so treat them like customers give them something good fast

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and nothing does that for affiliates like big launches and lots of cash here's

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how launches work affiliates advertise your lead magnet or core offer to their

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audience before they can buy it they post they do warm reach outs they run paid

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ads they may even do cold outreach they do as much advertising as they can

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until the day of launch when the project is available they sell to all the

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engaged leads they assembled some sell one-on some pitch the whole group and

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others simply make the product available so if you're going to do launches to

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activate affiliates which you should you may as well do them right I use the

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whisper T shot method I can't remember where I first heard this but the name

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stuck let's launch hey I hope you're enjoying the book chapter that you

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listened to right now a hundred million dollar leads I took a long time put

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in together for you and so my only ask is that you just take a quick second and

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leave a review for the book on Amazon it's the number one way that people find

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books and this is a way of getting more people into our world and so our

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mission acquisition I promise to make real business education accessible to

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everyone and I need your help and so if you could do that just that one one

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small action and it has a trade for the two years that I took putting this book

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together for you I would mean the world to me so thank you

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before we get launching remember good launches have the work done ahead of

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time so do all the work for them then they can plug and play let's break down

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each launch phase and I'll give an example of my book launch to drive each point

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home note this is how you launch anything not just affiliates I put it in the

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affiliate section because I haven't found a better way to activate affiliates

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than launches whisper think callouts like an ad the key to the whisper phase

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is curiosity keep the product itself mysterious and hint at how big of a

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deal it is keep whisper short and bonus points if you show behind the scenes

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of making your product if you have something in the works you can start the

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whisper phase a few years out that further out you start whispering the

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bigger deal it becomes to your audience we start this early because the

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longer something appears to take the more an audience will value it for

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example all other things being equal an audience will value product that

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took 10 years to make more than one that took 10 days so show your work

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remember curiosity come from wanting to know what happens next so embed

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questions about the product in their minds we need to tell them about something

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they want to know more about and then say not yet for example during the

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whisper phase of my book launch I posted content reached out to friends email

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my list told potential affiliates about major updates to the book I showed

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what draft I was on I took pictures behind the scenes of me printing out drafts

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I showed them any versions of the framework schedule I shared videos on

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myself editing the book clearly in the early morning and late at night etc all

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that made people who want to get leads get curious and pay attention action

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step start whispering every four to six weeks until you get 60 days out then

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whisper every two to three weeks until you get 30 days out then start teasing

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tease think elements of value it's time to start satisfying all the

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curiosity you created during the whisper phase reveal your product make the

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data the launch public and start showing the elements of value use the what who

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when framework from the paid ad chapter for example during my book launch the

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tease phase I was more specific and revealed more hard information about the

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book I started advertising how the book satisfied the dream of limitless

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leads of doing less work and getting it done fashion they could imagine I

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also showed dozens of examples using the book to its potential action step start

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teasing once per week until 14 days out then tease twice per week until three

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days out three days out is time to shout from the rooftops shout think call to

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action give specific actions for the audience to take when the product launches

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now you start pounding the audience with bonuses scarcity urgency and

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guarantees around being the first ones you shout to get as many people exposed

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your offer as you can for example during my book launch the shout phase I gave

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specific calls to action short sweet clear reminders to register for the book

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launch I reminded everyone of the exclusive bonuses only for people who bought

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during the launch action step shout at least twice a day starting three days

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out on the day of start shouting every few hours until two hours out then shout

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every 30 minutes until you launch the product pro tip movie releases the best real

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world example of whisper tea shout is movie releases they do five second

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trailers a year out then 30 second trailers 90 days out then longer trailers as

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the date approaches they drive curiosity then interest then action action step

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get your affiliates to launch set them up with everything they need to whisper

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tea shout right they do the advertising you get the engaged leads everyone gets

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paid step six keep them advertising the strategy we use to start them

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advertising differs from the one that we use to keep them advertising in an

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ideal world you sound affiliate once and they send engaged leads for life

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integration gets us there I've got three ways you can integrate your product

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into their offer I order these from easiest to hardest first you can get them

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to give away your lead men with every purchase of their stuff second you can get

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them to sell your lead man separately to their audience third you can get them

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to directly sell your core offer number one they give away your lead man

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free which makes their core offer more valuable for no extra cost then you

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upsell your core offer and every offer thereafter number one affiliates give

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your league magnet away when somebody buys their stuff the idea here is for your

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lead magnet to make the affiliates offer more valuable this allows them to charge

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more for it and get more leads than they could without it remember the best

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lead magnets give away a free trial or sample of your thing reveal a

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problem or offer a single step of a multi-step solution here are examples of

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each samples and trials say I sell massages and recruit the personal

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training studio next door as an affiliate now everyone who buys personal

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training from them gets a free massage from me the personal training studio now

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has a stronger offer they can charge more for and we get more massage leads

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everybody wins reveal a problem instead of giving a free massage we

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offer a free or discounted posture assessment with every training package they

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sell assessments and discounts add less value to the affiliates offer but some

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people will still do it and to be clear after assessing the customer you make

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them an offer to solve the problem you revealed one step and a multi-step

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process say you have a three-part treatment plan massage stretching and

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adjustments people get enough value from one step they fear missing out on the

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rest of the steps so the more they think the other steps will help them solve

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their larger problem the more likely they are to buy them what I did we'd get

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gym affiliates to give away a free nutrition consult to every new member then

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we'd upsell our products at the consult they can market that they have nutrition

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consults included to get more leads and they could charge more for the added

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value and we would get the opportunity to sell those leads everybody won

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pro tip white label lead magnets one of my favorite strategies is to let them

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use the lead magnets I've already made for my audience for theirs just make

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sure your affiliates agree with how you give value and understand your call to

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action at most a few tweaks and copy will make your lead magnet work for them

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for example for gyms I made white labeled no logo meal plans grocery list food

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prep instructions etc I gave them to the gyms to use the lead magnets for

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their customers all they had to do was slap their logo on it and boom their

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audience got to benefit from all my work instantly and we both got more leads

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two they sell their core offer then they upsell your lead magnet then you

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upsell your core offer and every offer there after affiliates sell your lead

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magnet basically the affiliate can sell anything of yours that turns their

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customers into your customers it could be a book an event a service a software

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a sample product etc also giving affiliates all the cash from selling lead

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magnet that you fulfill becomes all profit and no work for them and attract

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your proposition for any business your money comes by selling your main

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thing for more than it costs you to deliver your lead magnet and if you do it

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this way you don't need to split any money with them on your core offer

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another win-win example they sell each of those things we gave away for free

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in the step above they sell your massage at a discounted price they sell

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your assessment which you could do one-on-one or in a group format like a

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workshop they sell part one of your multi-step solution what I did the gyms

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would sell nutrition console with us and keep the money they'd maybe charge

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99 or 199 to sell an hour of our time if we were clever we let them keep all

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the money if we do they'll send even more leads then we'd upsell our products

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during the console three they sell their core offer which is the same as your

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core offer you upsell more stuff from there then you split the money either you

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split the upfront cash all the cash for a certain period of time or all the

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cash forever I prefer to pay forever so my affiliates they motivated to keep my

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customer forever and I never kept payouts number three affiliate sell your

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core offer and affiliate sells your core offer directly to their customers and

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adds another source of income without extra work for some affiliates this is

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their entire source of income many companies offer this structure as either a

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new business opportunity or a bolt-on to the affiliates existing business either

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way anything you sell they can sell when you do it this way the affiliate will

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get a higher percentage of your lifetime gross profit but you won't have to do

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anything but deliver example they sell your entire massage package they sell

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your entire program or services they bundle their services with your paid

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services and charge an even higher price what I did we taught gyms to hold

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nutrition consultations with white label products we then taught them to

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upsell our supplements right to their members and we split the money all three

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strategies work they're just different after testing we continue to do

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strategy one twice per year as a big event and strategy three on an ongoing

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basis that being said many similar businesses in our portfolio you

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strategy to I'm just sharing what worked for us bottom line integration is the

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long-term strategy for using affiliates to get enduring lead flow treat

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affiliates like customers make your offer makes sense for their business make

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it so good they feel stupid saying no action step integrate with your

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affiliates by choosing whether you want them to give away your lead magnet to

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sell your lead magnet or to sell your core offer directly those are the six

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steps to recruiting an affiliate army now that we covered that let me give you

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three real-life case studies to drive this home three case studies you can model

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service business case study number one national tax preparation services my

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friend's fifty million dollar business prepares LLC's bank caps and articles

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of incorporation he focuses on people starting businesses for the first time

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but he doesn't try to compete with legal zoom instead he built it

401
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partnering with people who trained new entrepreneurs his strategy is simple

402
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help those people sell more of their stuff by also selling his stuff so he

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offers every affiliates customer a free LLC setup remember learning about the

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high-cost lead magnet from section two this is one of those launch he does a big

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blast off seminar to his affiliates audience to kick things off people happily

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take him up on his free LLC offer that's his lead magnet integrate once

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affiliates see the success of this launch they integrate his lead magnet into

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their core offer then my friends team gets on the phone with the customers his

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affiliates bring him for free here's how he makes his money he sells them what

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they'll need next the services they'll need to start their business

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bokeh being tax prep etc he hasn't spent a dollar on paid ads his true

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advertising costs are two things one delivering his free lead magnet the LLC

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setup and two paying a percentage of every first sale to the affiliates that

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sent them that's it and everybody wins physical products case state number

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two prestige labs my supplement company we sell gym owners at gym launch and

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train them how to advertise and sell their gym memberships prestige labs has a

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line of supplements for active adults this makes gym launch a perfect affiliate

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for prestige labs it's a community of gym owners that also have active adult

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customers so when gym launch sells a new gym owner they introduce the gym

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owners to prestige labs then prestige labs team follows the launch that

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integrates strategy above we really do this launch we give the gym owners

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advertising materials so they can reengage their current and former customers

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we focus on warm outreach and posting content for a free 28 day challenge when

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they come in for the free challenge the gym owner sells them supplements to

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use with the program the gym owner gets more customers they make money we

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make money everyone wins integrate after the launch we teach them the

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self-submits to every new gym member so when new clients buy a membership

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package the gym owner sets up a nutrition orientation at the nutrition

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orientation the gym owner sells them 50 to a thousand dollars to

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supplements so if a gym signs up 20 clients per month and gets 70% of them to

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buy supplements we get 14 new customers per month per gym it doesn't sound

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like much but when you multiply 4,000 gyms times 14 new sales per month times

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$200 average order it equals a lot of money every month local business case

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day number three car practice car practice want new patients and a portfolio

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company vars teaches them to use an affiliate strategy to get them their

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00:28:33.580 --> 00:28:36.780
model is simple go to high volume businesses that have people that are in

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need of adjustments a gym fits the bill nicely here's what they do launch they

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get the gym owner to promote a three hour workshop where they show correct

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exercises and posture to get more from their workouts the gym owner promotes

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the workshop for free or sells the workshop for $29 to $99 a person the car

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practice splits the money with the gym owner hint if you give the affiliate the

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gym owner in this case 100% of the money they'll want to do it more so if a

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gym owner gets 30 people to show up for $99 they make $2,970 a profit for

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zero work besides a few emails and posts at the workshop the car practice

445
00:29:08.780 --> 00:29:12.220
soft pitches their services and gets a bucket of new patients easy peasy

446
00:29:12.220 --> 00:29:16.500
lemon squeezy integrate long term the car practice convinces the gym owner to

447
00:29:16.500 --> 00:29:20.500
include one to two adjustments with every new membership the gym signs up this

448
00:29:20.500 --> 00:29:23.460
increases the value of the gym membership compared to the guy down the street

449
00:29:23.460 --> 00:29:27.660
and it shows the gym prioritizes its members health and safety a big concern for

450
00:29:27.660 --> 00:29:32.500
beginners win win now every new gym member becomes a lead for the car

451
00:29:32.500 --> 00:29:35.820
practice to fall up with they repeat this process with 30 gyms and get more

452
00:29:35.820 --> 00:29:41.140
patients that they can handle pro tip employees are leads to companies that hire

453
00:29:41.140 --> 00:29:44.860
a lot of people make great affiliates this is huge for directing consumer

454
00:29:44.860 --> 00:29:49.420
businesses and wildly underused example every new hire at a company gets a

455
00:29:49.420 --> 00:29:52.900
free massage in their new employee packet or you can give free massages to

456
00:29:52.900 --> 00:29:56.380
their employees at lunch it's free it's easy and lots of companies want to

457
00:29:56.380 --> 00:29:59.740
bribe more value to their teams they get free value you get free leads and

458
00:29:59.740 --> 00:30:02.900
since they're probably not in the same business as you there's no risk of

459
00:30:02.900 --> 00:30:06.580
you quote competing with theirs so employers can be among the easiest

460
00:30:06.580 --> 00:30:11.060
affiliates to integrate with cost and returns affiliates can't work from

461
00:30:11.100 --> 00:30:14.540
my business the loser said I have to make affiliates work for my business the

462
00:30:14.540 --> 00:30:18.540
winner said be a winner when calculating returns with other methods we

463
00:30:18.540 --> 00:30:22.900
compared lifetime growth profit ltgp with cost to acquire customer cack so we

464
00:30:22.900 --> 00:30:25.860
spend money to get customers and the customers in a profitable business give us

465
00:30:25.860 --> 00:30:30.020
more money back affiliates work differently we spend money to get affiliates

466
00:30:30.020 --> 00:30:34.060
sure we don't really make much back from affiliates themselves instead the

467
00:30:34.060 --> 00:30:37.180
money we spend to get an affiliate comes back from the customers they bring us

468
00:30:37.180 --> 00:30:40.820
so to calculate returns we compare how much it costs us to get an affiliate with

469
00:30:40.820 --> 00:30:45.100
the gross profit of all the customers they send to our business example let's

470
00:30:45.100 --> 00:30:49.620
say we own a widget company that grows with affiliates it costs us $4,000 in

471
00:30:49.620 --> 00:30:54.100
advertising to get an affiliate so cack equals 4,000 our average affiliate sells

472
00:30:54.100 --> 00:30:58.820
$10,000 in widgets per month and stays for 12 months 10,000 per month times 12

473
00:30:58.820 --> 00:31:04.100
month equals 120,000 in total sales the widgets have a 75% gross margin in

474
00:31:04.100 --> 00:31:09.060
other words they cost 25% of retail price to make so 120,000 in total sales

475
00:31:09.100 --> 00:31:15.740
times 25% of total cost of goods equals $30,000 total cost of goods now we take

476
00:31:15.740 --> 00:31:21.660
the $120,000 total sales minus $30,000 total cost of goods equals $90,000 in

477
00:31:21.660 --> 00:31:25.180
gross profit from all the customers the affiliate brings we pay the affiliate

478
00:31:25.180 --> 00:31:32.420
40% of gross profit so $90,000 gross profit times 40% payout equals $36,000 to

479
00:31:32.420 --> 00:31:36.580
the affiliate as payment here's the gross profit we have leftover after cost of

480
00:31:36.580 --> 00:31:42.540
goods and payouts $120,000 total minus $30,000 cost of goods minus $36,000

481
00:31:42.540 --> 00:31:48.140
payout equals $54,000 left over so let's find out our affiliate LTGP to cack

482
00:31:48.140 --> 00:31:54.060
ratio $54,000 of gross profit left divided by $4,000 to get an affiliate 12.5

483
00:31:54.060 --> 00:31:59.340
to 1 not too shabby if you recall from earlier we need at least three to one

484
00:31:59.340 --> 00:32:02.340
to have a decent business like the example we want the ratio to be even

485
00:32:02.340 --> 00:32:06.540
hired that 5 to 1 10 to 1 plus now if we had these numbers we just do

486
00:32:06.540 --> 00:32:10.700
more but if your actual LTGP to cack is less than three here three ways to

487
00:32:10.700 --> 00:32:15.100
improve it number one lower cack we get affiliates for less by improving our

488
00:32:15.100 --> 00:32:20.660
ads offer and sales process to increase LTGP and decrease cack get more to

489
00:32:20.660 --> 00:32:25.980
activate by creating a launch process three increase LTGP we make them

490
00:32:25.980 --> 00:32:30.620
worth more by improving our integration process long term with affiliates you

491
00:32:30.620 --> 00:32:34.260
have at least two layers of customers your customers and the people who get

492
00:32:34.260 --> 00:32:37.940
you customers and if you've got super affiliates you add a third the people

493
00:32:37.940 --> 00:32:41.380
who get you the people who get you customers this adds complexity but if you

494
00:32:41.380 --> 00:32:44.820
can manage it it's worth it now that you understand how to use affiliates to

495
00:32:44.820 --> 00:32:47.940
advertise and how to make them more profitable let's bring it all home

496
00:32:47.940 --> 00:32:52.580
conclusion like referrals affiliates aren't an advertising method you can do

497
00:32:52.580 --> 00:32:56.380
they're people who advertise your stuff to benefit you both you do the core

498
00:32:56.380 --> 00:32:59.380
for to get them and if you want them to love you then you treat them like

499
00:32:59.380 --> 00:33:03.220
customers because in a lot of the ways they are and if you deliver more value

500
00:33:03.220 --> 00:33:06.340
to them then it costs to get them especially hitting costs they'll get you

501
00:33:06.340 --> 00:33:09.780
more leads than you can handle and like we learned earlier there are two ways

502
00:33:09.780 --> 00:33:12.980
to create a compounding business you can find more people that never stop

503
00:33:12.980 --> 00:33:16.460
buying your stuff or you can find more people who never stop selling it for

504
00:33:16.460 --> 00:33:21.180
you referrals are the former affiliates are the latter in theory once you

505
00:33:21.180 --> 00:33:24.460
build an affiliate army you never need to advertise again they keep getting

506
00:33:24.460 --> 00:33:28.060
you leads month after month the main reason it makes sense for them the way

507
00:33:28.060 --> 00:33:31.220
you do business your leadership the value your product all comes into play

508
00:33:31.220 --> 00:33:34.340
you are only as good as the goodwill you have with your affiliate partners

509
00:33:34.340 --> 00:33:38.940
arrange it right and you should both be better off in the relationship and they

510
00:33:38.940 --> 00:33:41.620
should be able to spend more to acquire customers through a more compelling offer

511
00:33:41.620 --> 00:33:45.860
higher profits or both in return you get more engaged leads so why doesn't

512
00:33:45.860 --> 00:33:50.340
everyone do this they don't know it's possible they don't know how or they

513
00:33:50.340 --> 00:33:54.380
don't want to simple is that hopefully we solved all three of those issues at

514
00:33:54.380 --> 00:33:58.540
once remember advertising always works it's only a matter of efficiency so

515
00:33:58.580 --> 00:34:02.780
once you start keep going until it works action step advertise your affiliate

516
00:34:02.780 --> 00:34:06.940
offer until you get 10 to 20 affiliates get results with those affiliates and

517
00:34:06.940 --> 00:34:10.580
use their feedback to work the kinks out of your offer terms launches and

518
00:34:10.580 --> 00:34:14.620
integration strategy then scale like crazy by turning their results into your

519
00:34:14.620 --> 00:34:18.820
first patch of affiliate lead magnets free gift build your affiliate army

520
00:34:18.820 --> 00:34:22.180
bonus as you can see my big fan of building affiliate programs when they're

521
00:34:22.180 --> 00:34:25.860
done right to help you do it right on your first try I made an in-depth video

522
00:34:25.860 --> 00:34:29.740
training for you get it free at acquisition dot com for slash training for

523
00:34:29.740 --> 00:34:39.180
slash leads enjoy section for conclusion get lead getters the last skill you

524
00:34:39.180 --> 00:34:41.820
ever need to learn is how to get other people to do everything you need for

525
00:34:41.820 --> 00:34:47.060
you we do the core for to get engaged leads or outreach post content cold

526
00:34:47.060 --> 00:34:51.460
outreach and paid ads and we use them to get two types of engage leads the

527
00:34:51.460 --> 00:34:55.500
ones that become customers or the ones we turn into lead getters lead getters

528
00:34:55.500 --> 00:35:00.180
come in for flavors refers employees agencies and affiliates each have key

529
00:35:00.180 --> 00:35:03.380
strengths customer referrals have the biggest potential for low cost

530
00:35:03.380 --> 00:35:07.220
exponential growth employees have your direct influence and run your business

531
00:35:07.220 --> 00:35:12.220
on your behalf agencies teach skills you keep forever and can transfer to your

532
00:35:12.220 --> 00:35:17.220
team affiliates once you get them going can operate entirely on their own you

533
00:35:17.220 --> 00:35:20.660
can either do the advertising or other people can and there are more quote

534
00:35:20.660 --> 00:35:23.820
other people than there are view you get more leads for the work you do when

535
00:35:23.820 --> 00:35:28.620
you have help so if you want to get a ton of leads this is the way maybe your

536
00:35:28.620 --> 00:35:31.940
head is officially spinning now that you understand these advertising methods

537
00:35:31.940 --> 00:35:35.860
you see leads everywhere you look we have so many ways to grow and you be right

538
00:35:35.860 --> 00:35:40.620
but you don't know which one to focus on any or all of these lead methods can

539
00:35:40.620 --> 00:35:44.140
underpin a successful lead getting strategy and I put them in the order of what

540
00:35:44.140 --> 00:35:47.740
happens naturally if you start on your own you tend to get your first referrals

541
00:35:47.740 --> 00:35:51.180
before you start building a big team and when you start building a big team

542
00:35:51.180 --> 00:35:54.900
employees you'll probably start looking for professionals to help agencies

543
00:35:54.900 --> 00:35:58.260
and only one of business owner has a handle on managing people inside of

544
00:35:58.260 --> 00:36:01.500
their business do they need to get the guts to try and manage people outside

545
00:36:01.500 --> 00:36:05.140
of their business affiliates in any case you have to forget the idea that

546
00:36:05.140 --> 00:36:08.460
everything is going to work out the first time if you think you're going to

547
00:36:08.460 --> 00:36:11.340
become a millionaire the first year you got on your own you're probably wrong

548
00:36:11.340 --> 00:36:15.260
it's very unlikely and an obsession with getting rich quick will likely

549
00:36:15.260 --> 00:36:18.940
ensure it never happens people try shortcuts for a decade until they realize

550
00:36:18.940 --> 00:36:21.980
they should have picked a strategy and stuck with it for a decade if you do

551
00:36:21.980 --> 00:36:26.300
that success is inevitable once you find something that works for you stick with

552
00:36:26.300 --> 00:36:30.020
what you pick those are the best words of encouragement I can offer the

553
00:36:30.020 --> 00:36:33.220
longer you play the game the better you will get and the more success you will

554
00:36:33.220 --> 00:36:38.020
have just don't quit or switch methods after seeing a few losses it's normal to

555
00:36:38.020 --> 00:36:42.060
lose in the beginning in fact I expect to crack a new lead source in three to

556
00:36:42.060 --> 00:36:46.020
six months and this isn't my first rodeo so if your expectations are faster than

557
00:36:46.020 --> 00:36:50.220
that do you think your expectations are reasonable we covered a lot here this

558
00:36:50.220 --> 00:36:54.500
section was how you scale you get other people to help you they are the missing

559
00:36:54.500 --> 00:36:58.620
link each has their own strategy and best practices use what applies to you

560
00:36:58.620 --> 00:37:03.460
now this leads us to section five get started I want to put everything together

561
00:37:03.460 --> 00:37:07.540
for you in a nice bow so you know exactly what to do next together we'll

562
00:37:07.540 --> 00:37:13.420
eliminate leads as the bottleneck in your business forever onwards that concludes

563
00:37:13.420 --> 00:37:16.460
the second the last episode of the hundred million dollar leads podcast

564
00:37:16.460 --> 00:37:20.500
collab and then the spirit of affiliates and partners I'm going to ask you to

565
00:37:20.500 --> 00:37:24.740
be an affiliate of mine and not in the way that you might expect so you might not

566
00:37:24.740 --> 00:37:27.780
know this but many people charge for audiobooks that's a common trade that's

567
00:37:27.780 --> 00:37:30.700
how most people do it and they don't even see that as like a a brand ask it's

568
00:37:30.700 --> 00:37:33.940
like of course you're going to charge for an audiobook but I chose not to do

569
00:37:33.940 --> 00:37:36.780
that despite spending probably more time on this book than most people spend on

570
00:37:36.780 --> 00:37:39.340
their books when they just have ghost writers pump them out so they can make 20

571
00:37:39.340 --> 00:37:44.060
bucks on everybody but here is my ask if you can be an affiliate of mine and

572
00:37:44.060 --> 00:37:48.660
send this chapter or any chapters or just the first chapter of this book to

573
00:37:48.660 --> 00:37:53.860
somebody else it would mean the world to me and maybe to them and something that

574
00:37:53.860 --> 00:37:56.380
you may not know that I found out way too late in life is that when you

575
00:37:56.380 --> 00:38:00.380
introduce someone to something valuable they associate you with the value that

576
00:38:00.380 --> 00:38:04.740
you gave them and so you can gain relational capital by introducing new people to

577
00:38:04.740 --> 00:38:09.940
valuable things and so I hope that I can be that channel for you and next we'll

578
00:38:09.940 --> 00:38:12.940
have our very last episode that will conclude the hundred million dollar

579
00:38:12.940 --> 00:38:16.020
leads book I'm not even gonna tell you what's in it it's just gonna be good

580
00:38:16.020 --> 00:38:20.340
because who gets 10 chapters in and doesn't finish the 11th so I'll see you in

581
00:38:20.340 --> 00:38:22.180
the next one

582
00:38:22.180 --> 00:38:27.060
this has been one hundred million dollar leads written by Alex Ramozi read by

583
00:38:27.060 --> 00:38:32.220
Alex Ramozi copyright 2023 acquisition dot com audio production copyright

584
00:38:32.220 --> 00:38:36.540
2023 acquisition dot com media