WEBVTT 1 00:00:00.000 --> 00:00:03.600 Stop trying to get rich, get better. 2 00:00:03.600 --> 00:00:07.120 And if you get better, getting rich will happen as a consequence. 3 00:00:07.120 --> 00:00:08.640 Getting rich is an outcome. 4 00:00:08.640 --> 00:00:09.920 Getting better is an input. 5 00:00:09.920 --> 00:00:12.720 Most entrepreneurs are focused on the output as the thing. 6 00:00:12.720 --> 00:00:14.960 And so they're scattered in terms of where their focus is 7 00:00:14.960 --> 00:00:16.720 because they're just joined to do everything they can 8 00:00:16.720 --> 00:00:17.840 to drive this number up, 9 00:00:17.840 --> 00:00:20.720 rather than trying to do the thing that creates the wealth. 10 00:00:20.720 --> 00:00:23.040 If you talk to 100 small business owners and ask them, 11 00:00:23.040 --> 00:00:24.480 what do you need to grow your business? 12 00:00:24.480 --> 00:00:26.640 All of them will say, I need cheaper leads. 13 00:00:26.640 --> 00:00:28.800 And they're all also wrong, 14 00:00:28.960 --> 00:00:30.720 which is why they're still small business owners 15 00:00:30.720 --> 00:00:31.920 and not big business owners. 16 00:00:31.920 --> 00:00:35.840 I see a lot of small business owners circling around 17 00:00:35.840 --> 00:00:37.320 asking the same question, 18 00:00:37.320 --> 00:00:40.040 which is figuring out how they're going to scale. 19 00:00:40.040 --> 00:00:43.040 And you're almost all doing it the wrong way. 20 00:00:43.040 --> 00:00:44.840 This is how most people do it, right? 21 00:00:44.840 --> 00:00:47.720 So they have a product and they learn one way 22 00:00:47.720 --> 00:00:49.360 of advertising and so they learn outbound, 23 00:00:49.360 --> 00:00:53.000 they start making content, they run ads, 24 00:00:53.000 --> 00:00:56.160 they find it a referral partner who sends them business 25 00:00:56.160 --> 00:00:58.440 and they start making sales. 26 00:00:58.440 --> 00:01:00.920 And then they're like, I need a scale. 27 00:01:00.920 --> 00:01:02.360 But in my experience, 28 00:01:02.360 --> 00:01:04.600 and this is to be fair, very normal when you're in the beginning 29 00:01:04.600 --> 00:01:05.600 because you don't know what you're doing. 30 00:01:05.600 --> 00:01:07.600 And the biggest risk of the business is you. 31 00:01:07.600 --> 00:01:10.520 But if you approach the business from, you know, 32 00:01:10.520 --> 00:01:12.640 call it a decade or more of experience, 33 00:01:12.640 --> 00:01:14.440 then you approach business differently. 34 00:01:14.440 --> 00:01:16.800 And so when somebody, let's say an investor 35 00:01:16.800 --> 00:01:18.920 who wants to build a billion dollar brand 36 00:01:18.920 --> 00:01:21.040 gets into let's say a local business, 37 00:01:21.040 --> 00:01:23.400 they're not building that single store 38 00:01:23.400 --> 00:01:26.320 with the intention of maximizing that potential store. 39 00:01:26.320 --> 00:01:27.600 They're trying to nail the model 40 00:01:27.600 --> 00:01:29.040 so it's as simple as humanly possible 41 00:01:29.040 --> 00:01:30.920 so that they can scale it. 42 00:01:30.920 --> 00:01:33.880 And I think that what a lot of small businesses lack 43 00:01:33.880 --> 00:01:36.680 is perspective and so you have to build with the end in mind. 44 00:01:36.680 --> 00:01:38.880 And so I think if I were to theme this, you know, 45 00:01:38.880 --> 00:01:41.160 this call, this live, this podcast, 46 00:01:41.160 --> 00:01:43.560 it would be building back to front. 47 00:01:43.560 --> 00:01:46.160 And so I think one of the things that has worked really well 48 00:01:46.160 --> 00:01:47.840 for me in the past and when I failed, 49 00:01:47.840 --> 00:01:49.520 I have failed to do this. 50 00:01:49.520 --> 00:01:52.440 It's I would chase revenue for the revenue sake 51 00:01:52.440 --> 00:01:54.200 and that's when I do it the wrong way. 52 00:01:54.200 --> 00:01:56.640 If I try and chase the backend first 53 00:01:56.640 --> 00:01:58.080 and build the business back to front, 54 00:01:58.080 --> 00:01:59.840 then the front end becomes very easy. 55 00:01:59.840 --> 00:02:01.520 And so I'm going to unpack that statement 56 00:02:01.520 --> 00:02:03.680 so that it makes a little bit more sense. 57 00:02:03.680 --> 00:02:06.480 So John Paul DeGiorio said, 58 00:02:06.480 --> 00:02:08.600 you don't want to be in the selling business. 59 00:02:08.600 --> 00:02:10.160 And everything that I described at this point 60 00:02:10.160 --> 00:02:11.720 is very much the selling business. 61 00:02:11.720 --> 00:02:13.440 And so the only way that you can grow that business 62 00:02:13.440 --> 00:02:16.040 is selling more units is selling more customers. 63 00:02:16.040 --> 00:02:18.040 And that's a very terrible business to be in. 64 00:02:18.040 --> 00:02:21.520 And that's also the business that 95% of businesses are in 65 00:02:21.520 --> 00:02:23.120 is they're constantly struggling for leads. 66 00:02:23.120 --> 00:02:24.480 They constantly are trying to figure out 67 00:02:24.480 --> 00:02:26.000 where my next customer's coming from. 68 00:02:26.000 --> 00:02:31.040 And if this is you, then listen to what I am saying right now. 69 00:02:31.040 --> 00:02:33.480 If you build a business and so the second part of that quote 70 00:02:33.480 --> 00:02:35.520 is that you want to be in the reselling business, 71 00:02:35.520 --> 00:02:37.160 not the selling business. 72 00:02:37.160 --> 00:02:38.680 And so you have to think about this 73 00:02:38.680 --> 00:02:40.800 from a hypothetical like extreme perspective, 74 00:02:40.800 --> 00:02:44.760 which is if I play this out, what does this look like at scale? 75 00:02:44.760 --> 00:02:46.280 And so this is a game that I like to play, 76 00:02:46.280 --> 00:02:47.800 which is like let's play it out two more steps. 77 00:02:47.800 --> 00:02:50.040 And you could beat 99% of people by just thinking 78 00:02:50.040 --> 00:02:53.440 the second and third order effects from any decision 79 00:02:53.440 --> 00:02:54.280 that you have. 80 00:02:54.280 --> 00:02:56.440 Most people can't think more than one step ahead. 81 00:02:56.440 --> 00:02:58.560 They barely think about the step they're doing right now. 82 00:02:58.560 --> 00:03:00.000 But if you can think two steps ahead, 83 00:03:00.000 --> 00:03:02.200 then you can avoid a lot of calamity in your life. 84 00:03:02.200 --> 00:03:05.640 And so let me, let me zoom out and explain what I'm talking about. 85 00:03:05.640 --> 00:03:09.040 If your goal to grow your business is you say, 86 00:03:09.040 --> 00:03:11.400 OK, I sell books. 87 00:03:11.400 --> 00:03:13.600 Great, I sell books. 88 00:03:13.600 --> 00:03:15.680 In order for me to grow my book business, 89 00:03:15.680 --> 00:03:18.400 I have to get more people to buy my book. 90 00:03:18.400 --> 00:03:19.720 And that's it, period. 91 00:03:19.720 --> 00:03:23.840 Well, if you do that, there's, you literally 92 00:03:23.840 --> 00:03:27.240 just have to market and sell for the rest of your entire life. 93 00:03:27.240 --> 00:03:28.720 And the only way to grow your business 94 00:03:28.720 --> 00:03:29.960 is to advertise more. 95 00:03:29.960 --> 00:03:31.080 That's literally it. 96 00:03:31.080 --> 00:03:32.560 The only way to grow. 97 00:03:32.560 --> 00:03:35.280 And so unless you're supremely good at advertising 98 00:03:35.280 --> 00:03:37.440 and you learn how to master affiliates, 99 00:03:37.440 --> 00:03:39.680 you learn how to master SEO, you learn how to master making 100 00:03:39.680 --> 00:03:41.560 content, you learn how to run paid ads, 101 00:03:41.560 --> 00:03:43.520 you learn how to do email, you learn how to do outbound, 102 00:03:43.520 --> 00:03:44.560 you learn how to do all these things 103 00:03:44.560 --> 00:03:48.440 so that you can maximize your sales unless you do that. 104 00:03:48.440 --> 00:03:49.920 And the thing is, and this is what sucks, 105 00:03:49.920 --> 00:03:53.360 is that the next month, you have to reload 106 00:03:53.360 --> 00:03:55.040 all of your sales again. 107 00:03:55.040 --> 00:03:57.640 You have to start at zero again. 108 00:03:57.640 --> 00:03:59.320 And that sucks. 109 00:03:59.320 --> 00:04:01.280 And that's how the vast majority of businesses live. 110 00:04:01.280 --> 00:04:03.640 But the thing is, it doesn't have to be that way. 111 00:04:03.640 --> 00:04:05.400 And so it takes a little bit more thought 112 00:04:05.400 --> 00:04:06.480 and saying, you know what? 113 00:04:06.480 --> 00:04:08.440 We're doing 50,000 a month. 114 00:04:08.440 --> 00:04:09.280 We're doing 100,000 a month. 115 00:04:09.280 --> 00:04:10.760 We're doing 300,000 a month. 116 00:04:10.760 --> 00:04:14.160 And if we just do more of what we're currently doing, sure. 117 00:04:14.160 --> 00:04:16.840 We can, if we triple our marketing, 118 00:04:16.840 --> 00:04:18.160 we can get to 10 million. 119 00:04:18.160 --> 00:04:20.400 Can we 10x our marketing? 120 00:04:20.400 --> 00:04:22.720 Maybe how difficult will that be? 121 00:04:22.720 --> 00:04:24.960 And so that's where, and this happens a lot 122 00:04:24.960 --> 00:04:26.440 right around the $3 million a year mark. 123 00:04:26.440 --> 00:04:29.280 So if you're at that part, like it's the end of the swamp, right? 124 00:04:29.280 --> 00:04:31.600 And the only way to get to the million a month and beyond 125 00:04:31.600 --> 00:04:33.160 is to learn what I'm talking about, 126 00:04:33.160 --> 00:04:35.040 which is you have to look at the back of the business 127 00:04:35.040 --> 00:04:38.280 and say, why are there so many holes in my bucket? 128 00:04:38.280 --> 00:04:41.120 Because just pouring more water into the holy bucket, 129 00:04:41.120 --> 00:04:43.600 like everyone understands this conceptually. 130 00:04:43.600 --> 00:04:45.280 But we don't act that way. 131 00:04:45.280 --> 00:04:46.600 And I say this from experience 132 00:04:46.600 --> 00:04:48.000 because in the earlier part of my career, 133 00:04:48.000 --> 00:04:49.760 I only chased revenue and I chased profit. 134 00:04:49.760 --> 00:04:52.360 I just wanted to, I want to growth at all costs. 135 00:04:52.360 --> 00:04:54.800 But the thing is that sometimes the cost of that growth 136 00:04:54.800 --> 00:04:56.560 is the long-term growth of the business. 137 00:04:56.560 --> 00:05:00.040 And so it's like you sacrifice the long-term growth 138 00:05:00.040 --> 00:05:02.360 so that you can grow faster in the short term. 139 00:05:02.360 --> 00:05:06.000 And so big picture, what you want to do 140 00:05:06.000 --> 00:05:09.400 is figure out something that people don't stop buying. 141 00:05:09.400 --> 00:05:11.600 And I feel like I say this over and over again, 142 00:05:11.600 --> 00:05:13.680 but like no one does it. 143 00:05:13.680 --> 00:05:17.400 And so it doesn't have to be a recurring business model. 144 00:05:17.400 --> 00:05:18.760 You just have something that people 145 00:05:18.760 --> 00:05:20.760 either tell their friends immediately about. 146 00:05:20.760 --> 00:05:23.800 So like in the book instance, we sell almost a million dollars 147 00:05:23.800 --> 00:05:24.400 a month in books. 148 00:05:24.400 --> 00:05:26.400 I don't advertise the books, right? 149 00:05:26.400 --> 00:05:28.560 And it's because people read it 150 00:05:28.560 --> 00:05:30.000 and then they post about it, they tell their friends 151 00:05:30.000 --> 00:05:31.000 and then other people buy the book 152 00:05:31.000 --> 00:05:32.200 and that circle goes on it. 153 00:05:32.200 --> 00:05:33.840 It's because we spent more time on the product. 154 00:05:33.840 --> 00:05:35.320 And it's the sandwich shop that's like, 155 00:05:35.320 --> 00:05:37.600 I have to sell more customers into my sandwich shop. 156 00:05:37.600 --> 00:05:39.440 But their sandwiches are just mediocre. 157 00:05:39.440 --> 00:05:40.960 And so they're going to be stuck forever 158 00:05:40.960 --> 00:05:42.920 trying to figure out what the new hook is. 159 00:05:42.920 --> 00:05:44.800 And to be fair, I wrote a book on offers. 160 00:05:44.800 --> 00:05:46.800 And I think that's important when you're getting started. 161 00:05:46.800 --> 00:05:50.000 But long-term, the offer just gets them in the door. 162 00:05:50.040 --> 00:05:51.920 How well you deliver on the offer 163 00:05:51.920 --> 00:05:54.200 is what's going to keep them paying over and over again. 164 00:05:54.200 --> 00:05:55.880 It's going to get them to send referrals. 165 00:05:55.880 --> 00:05:57.840 And so like unless you nail this, 166 00:05:57.840 --> 00:05:59.600 the thing is that people end up settling 167 00:05:59.600 --> 00:06:00.920 because they're in a rush. 168 00:06:00.920 --> 00:06:03.040 They settle on their current level of sandwiches. 169 00:06:03.040 --> 00:06:05.360 They settle on their current level of service 170 00:06:05.360 --> 00:06:07.480 because they're in a rush to get to the next level. 171 00:06:07.480 --> 00:06:09.360 But by being in a rush to get the next level, 172 00:06:09.360 --> 00:06:10.480 you build out more infrastructure, 173 00:06:10.480 --> 00:06:13.680 you sell more units, and then you can't go back to the product 174 00:06:13.680 --> 00:06:15.240 because you have so much other crap 175 00:06:15.240 --> 00:06:16.480 that you're paying attention to 176 00:06:16.480 --> 00:06:17.520 that you can never revisit it. 177 00:06:17.520 --> 00:06:19.600 And then you run into this endless hamster wheel 178 00:06:19.600 --> 00:06:22.600 where margins compressed, you have to generate more revenue. 179 00:06:22.600 --> 00:06:24.160 And then you can never get ahead of it. 180 00:06:24.160 --> 00:06:25.120 I'll tell you a story. 181 00:06:25.120 --> 00:06:27.920 So I had a friend of mine started a cookie business. 182 00:06:27.920 --> 00:06:30.320 When he started the cookie business, this is what he did. 183 00:06:30.320 --> 00:06:33.760 He went around the country to the top cookie stores 184 00:06:33.760 --> 00:06:35.960 and chefs or bakery chefs, I don't know what they're called, 185 00:06:35.960 --> 00:06:36.800 bakers. 186 00:06:36.800 --> 00:06:39.760 And he asked them if he could just hang out with them 187 00:06:39.760 --> 00:06:40.800 and learn how they bake their cookies. 188 00:06:40.800 --> 00:06:42.480 And they were, you know, some of them said, you know, 189 00:06:42.480 --> 00:06:43.840 pound sand, but some of them were like, sure, 190 00:06:43.840 --> 00:06:44.760 you can hang out. 191 00:06:44.760 --> 00:06:46.720 And so he learned what they did to bake cookies. 192 00:06:46.720 --> 00:06:50.720 And then when he came back home, he baked a new dozen cookies 193 00:06:50.720 --> 00:06:52.760 every single day for a year. 194 00:06:52.760 --> 00:06:56.840 And he numbered all the batches and yet 365 batches of cookies. 195 00:06:56.840 --> 00:06:58.720 And every time he did it, he gave it to tasteers 196 00:06:58.720 --> 00:07:00.680 and then people would say, you know what, I like this, 197 00:07:00.680 --> 00:07:01.880 I don't like this, whatever. 198 00:07:01.880 --> 00:07:03.800 And so by the end of that time period, 199 00:07:03.800 --> 00:07:07.160 when he opened his restaurant, guess what also happened? 200 00:07:07.160 --> 00:07:08.920 The many people who had tasted his cookies, 201 00:07:08.920 --> 00:07:09.760 he got their numbers. 202 00:07:09.760 --> 00:07:11.520 He was giving free cookies away so that he could figure, 203 00:07:11.520 --> 00:07:13.320 he also generated leads from his area. 204 00:07:13.320 --> 00:07:16.200 And then he opened and had a smashing success 205 00:07:16.240 --> 00:07:19.000 of a business selling premium cookies in a local market, 206 00:07:19.000 --> 00:07:20.360 which is a tough business to be in. 207 00:07:20.360 --> 00:07:22.360 But he crushed it and he did it 208 00:07:22.360 --> 00:07:26.520 because he spent 365 days doing the work 209 00:07:26.520 --> 00:07:28.560 to figure out the hundred tiny details 210 00:07:28.560 --> 00:07:30.040 that make a perfect cookie. 211 00:07:30.040 --> 00:07:32.240 And so like if you're in the sandwich business, 212 00:07:32.240 --> 00:07:33.560 if you're in the SEO business, 213 00:07:33.560 --> 00:07:35.960 if you're in the mechanic business, 214 00:07:35.960 --> 00:07:38.520 it's figuring out what we need to do 215 00:07:38.520 --> 00:07:39.960 to make the cookie that much better. 216 00:07:39.960 --> 00:07:41.600 And that's the work that no one's willing to do. 217 00:07:41.600 --> 00:07:44.200 And that's the good news is that's the opportunity. 218 00:07:44.200 --> 00:07:45.520 That's the opportunity that most people 219 00:07:45.520 --> 00:07:46.360 don't really need to do. 220 00:07:46.360 --> 00:07:47.760 They're always like, if you ask small business owners, 221 00:07:47.760 --> 00:07:49.440 what do I need, they say I need more leads. 222 00:07:49.440 --> 00:07:50.400 They all say that. 223 00:07:50.400 --> 00:07:52.360 Now, if everybody says they need the same thing, 224 00:07:52.360 --> 00:07:53.920 to me, that's a big light bulb, 225 00:07:53.920 --> 00:07:55.160 that if they're all pursuing the same thing 226 00:07:55.160 --> 00:07:56.000 and none of them are growing, 227 00:07:56.000 --> 00:07:58.640 then they're probably looking for the wrong stuff. 228 00:07:58.640 --> 00:08:00.240 And if you've been stuck at the same level 229 00:08:00.240 --> 00:08:01.240 for a long period of time, 230 00:08:01.240 --> 00:08:02.960 listen to what I'm saying right now. 231 00:08:02.960 --> 00:08:04.240 Real quick, if you're a business owner 232 00:08:04.240 --> 00:08:06.560 and you want to increase LTV viewers customers, 233 00:08:06.560 --> 00:08:07.560 one of the best ways to do that 234 00:08:07.560 --> 00:08:09.200 is actually have a great community 235 00:08:09.200 --> 00:08:10.840 that they can reinforce one another in. 236 00:08:10.840 --> 00:08:13.880 And so I became a co-owner of school.com 237 00:08:14.040 --> 00:08:15.240 and we have the school games, 238 00:08:15.240 --> 00:08:17.400 which is a way that we help people build those communities 239 00:08:17.400 --> 00:08:19.880 for their businesses or to start a business 240 00:08:19.880 --> 00:08:21.320 of their own through communities. 241 00:08:21.320 --> 00:08:22.720 And so if either of those things are interesting, 242 00:08:22.720 --> 00:08:24.000 you can start for free. 243 00:08:24.000 --> 00:08:25.200 It's really cool. 244 00:08:25.200 --> 00:08:26.440 People really like it. 245 00:08:26.440 --> 00:08:27.560 Give it a shot. 246 00:08:27.560 --> 00:08:31.920 You have to find out why people aren't buying again. 247 00:08:31.920 --> 00:08:35.160 You have to find out why people aren't referring to their friends. 248 00:08:35.160 --> 00:08:36.120 And sometimes you're like, 249 00:08:36.120 --> 00:08:37.920 well, when I ask them, they don't tell me. 250 00:08:37.920 --> 00:08:40.400 It's like sometimes you have to read between the lines. 251 00:08:40.400 --> 00:08:41.600 And that's the hard part. 252 00:08:42.600 --> 00:08:44.200 But that's the work. 253 00:08:44.200 --> 00:08:45.520 Like, that's the work. 254 00:08:46.800 --> 00:08:49.880 And I get a little bit pieved about this 255 00:08:49.880 --> 00:08:51.480 because I see so many small business owners 256 00:08:51.480 --> 00:08:53.920 that aren't growing and they're not growing 257 00:08:53.920 --> 00:08:55.080 because they're always thinking about 258 00:08:55.080 --> 00:08:56.040 how they're gonna get more leads 259 00:08:56.040 --> 00:08:57.160 but they're not realizing the fact 260 00:08:57.160 --> 00:08:58.160 that they have to get more leads 261 00:08:58.160 --> 00:09:00.160 because they have so many holes in their bucket. 262 00:09:00.160 --> 00:09:02.240 And so there is a level of advertising 263 00:09:02.240 --> 00:09:05.440 that you have to maintain in order to test. 264 00:09:05.440 --> 00:09:07.720 My friend with the cookie store had to go out to people 265 00:09:07.720 --> 00:09:09.520 and he had to get them to try the cookies. 266 00:09:09.600 --> 00:09:12.440 But the objective, once he had his second batch of cookies 267 00:09:12.440 --> 00:09:15.520 wasn't like, oh, I need to give out 12 batches a day. 268 00:09:15.520 --> 00:09:17.160 No, that wasn't the goal at that point. 269 00:09:17.160 --> 00:09:18.600 The goal was to refine the product 270 00:09:18.600 --> 00:09:20.440 or find the service, make it better. 271 00:09:20.440 --> 00:09:22.560 Get the onboarding, the recruiting, the hiring, 272 00:09:22.560 --> 00:09:24.080 the training of the employees 273 00:09:24.080 --> 00:09:26.680 so they could deliver the service good enough 274 00:09:26.680 --> 00:09:28.240 so that when he scaled, 275 00:09:28.240 --> 00:09:29.720 the quality of the product were mean the same 276 00:09:29.720 --> 00:09:31.480 or ideally had a process in place 277 00:09:31.480 --> 00:09:33.840 that it would improve over time. 278 00:09:33.840 --> 00:09:36.600 But people rush to scale because they have 279 00:09:36.600 --> 00:09:39.320 some sort of insecurity about I have to make progress 280 00:09:39.320 --> 00:09:41.440 but the thing is not all progress is measured in revenue 281 00:09:41.440 --> 00:09:42.480 immediately. 282 00:09:42.480 --> 00:09:45.080 Some progress happens at a delay. 283 00:09:45.080 --> 00:09:47.160 And so one of the biggest progress markers 284 00:09:47.160 --> 00:09:49.400 that happens at a delay is product. 285 00:09:49.400 --> 00:09:51.280 And so when we talk about delay gratification, 286 00:09:51.280 --> 00:09:53.000 one of the ways that you can exercise 287 00:09:53.000 --> 00:09:55.840 that muscle of learning to delay reward for the work you do 288 00:09:55.840 --> 00:09:57.840 is improving the thing that you deliver. 289 00:09:57.840 --> 00:09:59.240 Because if you improve your sales, 290 00:09:59.240 --> 00:10:00.680 you're gonna immediately see a jump. 291 00:10:00.680 --> 00:10:02.840 If you improve your lead, you'll immediately see a jump 292 00:10:02.840 --> 00:10:04.080 and that's why it gets so addicting 293 00:10:04.080 --> 00:10:05.360 for small business owners because they say, 294 00:10:05.360 --> 00:10:07.120 oh, look, I improved this little sales thing 295 00:10:07.120 --> 00:10:07.920 and look, we're making more money. 296 00:10:08.000 --> 00:10:09.840 And yes, you are making more money. 297 00:10:09.840 --> 00:10:11.880 But the thing is that you're not gonna make the big money. 298 00:10:11.880 --> 00:10:13.640 The monster money comes from the backend. 299 00:10:13.640 --> 00:10:15.440 The reason you can't afford your leads, 300 00:10:15.440 --> 00:10:17.920 there's never not enough leads. 301 00:10:17.920 --> 00:10:20.080 I like, I wanna impress this upon you. 302 00:10:20.080 --> 00:10:23.280 There is an unlimited amount of traffic in the world 303 00:10:23.280 --> 00:10:24.640 across all media. 304 00:10:24.640 --> 00:10:25.960 You've got radio, you've got newspaper, 305 00:10:25.960 --> 00:10:29.120 you've got direct mail, you've got Instagram, 306 00:10:29.120 --> 00:10:30.240 you've got Facebook, you've got YouTube, 307 00:10:30.240 --> 00:10:33.200 you've got TikTok, you've got Spotify ads, right? 308 00:10:33.200 --> 00:10:35.000 You've got podcasts, you've got affiliates, 309 00:10:35.000 --> 00:10:36.440 you've got, there's SEO, 310 00:10:36.440 --> 00:10:39.520 there's so many different places where eyeballs are. 311 00:10:39.520 --> 00:10:42.080 The problem is not that you don't have enough leads. 312 00:10:42.080 --> 00:10:43.640 The problem is you can't afford them 313 00:10:43.640 --> 00:10:45.520 because your product sucks. 314 00:10:45.520 --> 00:10:47.520 Like this is the problem. 315 00:10:47.520 --> 00:10:50.480 And so you have to build it back to front. 316 00:10:50.480 --> 00:10:52.400 You can consistently, think about this 317 00:10:52.400 --> 00:10:54.160 from a competitive mode perspective. 318 00:10:54.160 --> 00:10:57.160 If you make the same amount of money per customer 319 00:10:57.160 --> 00:10:58.480 as your competition, 320 00:10:58.480 --> 00:11:01.480 then you are always going to be in a race to the bottom. 321 00:11:01.480 --> 00:11:02.880 And when I say race to the bottom, 322 00:11:02.880 --> 00:11:04.800 I mean a race to the bottom of CAC. 323 00:11:04.800 --> 00:11:06.160 You wanna, all you're gonna be doing 324 00:11:06.200 --> 00:11:08.680 is trying to find little hacks to hack social media, 325 00:11:08.680 --> 00:11:09.880 to hack ads, to do whatever. 326 00:11:09.880 --> 00:11:12.040 And those hacks are always short lived. 327 00:11:13.400 --> 00:11:15.360 The biggest businesses, and I look at this a lot 328 00:11:15.360 --> 00:11:16.880 because it's been a lot of trying to think, 329 00:11:16.880 --> 00:11:18.400 okay, how is Alex going to get to a billion? 330 00:11:18.400 --> 00:11:19.760 How is Alex going to get to a billion? 331 00:11:19.760 --> 00:11:21.560 Is I look at the biggest companies? 332 00:11:21.560 --> 00:11:23.400 And the thing is, is that have you noticed 333 00:11:23.400 --> 00:11:26.240 that the biggest companies aren't doing the Instagram hacks? 334 00:11:26.240 --> 00:11:28.640 Have you noticed they're not trying to do these little, 335 00:11:28.640 --> 00:11:30.720 like, oh yeah, have you put this hashtag at the bottom? 336 00:11:30.720 --> 00:11:32.880 Like, oh, if you do this little call out or the shout out. 337 00:11:33.240 --> 00:11:35.520 If you noticed that they don't do that, 338 00:11:36.760 --> 00:11:39.520 and the reason they don't do that is because they don't have to, 339 00:11:39.520 --> 00:11:41.360 because they have won the long game, 340 00:11:41.360 --> 00:11:43.440 and the long game is the LTV game. 341 00:11:43.440 --> 00:11:46.240 It's how much is a customer worth to me? 342 00:11:46.240 --> 00:11:47.960 And so Dan Kennedy said this a long time, 343 00:11:47.960 --> 00:11:50.280 because he can spend the most required customer wins. 344 00:11:50.280 --> 00:11:52.640 And I rephrase that as he who can make 345 00:11:52.640 --> 00:11:55.600 his customers the most valuable wins. 346 00:11:56.680 --> 00:11:58.000 Because being able to spend the most 347 00:11:58.000 --> 00:12:01.600 is a product of how much you make a customer worth to you, 348 00:12:01.600 --> 00:12:03.360 which is a function of what the gross profit is 349 00:12:03.360 --> 00:12:05.440 and how many times they buy. 350 00:12:05.440 --> 00:12:07.960 And the how many times they buy function 351 00:12:07.960 --> 00:12:10.920 has a direct proportion to how good the quality of the product is. 352 00:12:10.920 --> 00:12:14.200 And by the way, when you improve the quality of your product, 353 00:12:14.200 --> 00:12:15.600 guess what happens? 354 00:12:15.600 --> 00:12:16.760 You get referrals. 355 00:12:16.760 --> 00:12:18.440 Now think about this, I want to, again, 356 00:12:18.440 --> 00:12:20.200 we have to play this out two, three steps. 357 00:12:21.160 --> 00:12:22.440 If you start marketing, 358 00:12:23.320 --> 00:12:26.200 let me tell you some truths that will not change. 359 00:12:26.200 --> 00:12:28.600 Advertising will always become more expensive. 360 00:12:29.560 --> 00:12:31.360 The cost per eyeball will always go up. 361 00:12:31.360 --> 00:12:33.080 You look at CPMs on Facebook. 362 00:12:33.080 --> 00:12:34.360 You look at CPMs on YouTube. 363 00:12:34.360 --> 00:12:37.440 The cost per eyeball will always go up on every platform. 364 00:12:38.480 --> 00:12:41.360 And as you scale, your advertising will go 365 00:12:41.360 --> 00:12:43.240 to colder and colder audiences 366 00:12:43.240 --> 00:12:44.880 and it will become less and less efficient. 367 00:12:44.880 --> 00:12:46.480 This happens at scale. 368 00:12:46.480 --> 00:12:47.560 These are truths. 369 00:12:47.560 --> 00:12:48.720 These will not change. 370 00:12:48.720 --> 00:12:50.160 These are facts. 371 00:12:50.160 --> 00:12:52.120 And so if you want to scale a business, 372 00:12:52.120 --> 00:12:55.040 how can you scale if they have two things 373 00:12:55.040 --> 00:12:57.280 that are going in a linear direction against you? 374 00:12:57.280 --> 00:13:00.400 The cost of advertising to reach the eyeball goes up 375 00:13:00.400 --> 00:13:03.200 and the conversion percentage of the eyeballs also goes up. 376 00:13:03.200 --> 00:13:04.560 Because you go to a bigger and bigger audience 377 00:13:04.560 --> 00:13:06.840 that knows less and less, they're less problem aware 378 00:13:06.840 --> 00:13:08.240 and you have less product aware 379 00:13:08.240 --> 00:13:09.880 and you have to do more education up front 380 00:13:09.880 --> 00:13:11.200 to a less interested audience. 381 00:13:11.200 --> 00:13:12.040 This happens. 382 00:13:12.040 --> 00:13:14.040 This is an inevitability. 383 00:13:14.040 --> 00:13:15.480 And so how do you combat that? 384 00:13:16.480 --> 00:13:20.160 You combat that by having referrals 385 00:13:20.160 --> 00:13:22.440 and referrals come from every sale. 386 00:13:22.440 --> 00:13:25.080 And so if every sale, one, that person keeps buying 387 00:13:25.080 --> 00:13:26.720 and two, they send you another customer, 388 00:13:26.720 --> 00:13:27.560 guess what happens? 389 00:13:27.560 --> 00:13:29.200 That cat gets cut in half. 390 00:13:29.240 --> 00:13:31.640 And so you need an equally strong compounding vehicle 391 00:13:31.640 --> 00:13:35.360 that works in your favor to maintain your LTV to cat ratio. 392 00:13:35.360 --> 00:13:37.160 And so when you improve product, 393 00:13:37.160 --> 00:13:40.440 you also decrease cat via referrals at scale. 394 00:13:40.440 --> 00:13:42.280 So it doesn't matter how much scale you have. 395 00:13:42.280 --> 00:13:43.960 If you deliver an exceptional product, 396 00:13:43.960 --> 00:13:46.080 you will be able to have, you always know 397 00:13:46.080 --> 00:13:48.520 that 1.3 customers or every customer brings you, 398 00:13:48.520 --> 00:13:50.640 whatever, 0.3 new customers on top of that. 399 00:13:50.640 --> 00:13:53.440 So you decrease your cost required by 30%. 400 00:13:53.440 --> 00:13:56.920 And you get the LTV boost that happens in the back end as well, 401 00:13:56.920 --> 00:13:59.280 which is that they buy more and they spend longer. 402 00:13:59.280 --> 00:14:01.880 They're willing to pay a premium and so forth. 403 00:14:01.880 --> 00:14:04.720 And the third wheel of that in terms of product 404 00:14:04.720 --> 00:14:08.320 is that product is the end of the brand cycle. 405 00:14:08.320 --> 00:14:10.920 So if you think about brand as a reinforcing loop, right? 406 00:14:10.920 --> 00:14:12.400 In the beginning, when you start a company, 407 00:14:12.400 --> 00:14:13.480 you make a promise. 408 00:14:13.480 --> 00:14:15.320 Fundamentally, that's how you enter marketplace. 409 00:14:15.320 --> 00:14:16.640 You say, I'm gonna solve this problem. 410 00:14:16.640 --> 00:14:17.920 That is my promise to you. 411 00:14:17.920 --> 00:14:19.840 All right, and anyone can say that. 412 00:14:19.840 --> 00:14:21.520 What builds the business over the long term 413 00:14:21.520 --> 00:14:24.000 is your ability to deliver on that promise. 414 00:14:24.000 --> 00:14:25.440 Otherwise, it's the same reason you sell these 415 00:14:25.480 --> 00:14:27.360 fucking internet marketers whose change 416 00:14:27.360 --> 00:14:30.360 who start a new business every six months. 417 00:14:30.360 --> 00:14:31.560 And the new business is there like, 418 00:14:31.560 --> 00:14:32.920 I gotta find the next offer. 419 00:14:32.920 --> 00:14:34.680 Because they're so front end obsessed 420 00:14:34.680 --> 00:14:36.240 because they never figured it was wrong 421 00:14:36.240 --> 00:14:37.160 with your first offer. 422 00:14:37.160 --> 00:14:38.360 People bought it. 423 00:14:38.360 --> 00:14:40.400 The promise you couldn't deliver on it. 424 00:14:40.400 --> 00:14:43.600 And so just little vagus warning sign, by the way, 425 00:14:43.600 --> 00:14:47.760 if you see the same guy changing up his offer every six months, 426 00:14:47.760 --> 00:14:50.040 it's because he doesn't know how to keep his promises. 427 00:14:50.040 --> 00:14:52.200 He lacks the skill of product. 428 00:14:52.200 --> 00:14:54.040 He lacks the skill of delivery. 429 00:14:54.040 --> 00:14:57.200 He lacks the skill of being able to recruit higher manage 430 00:14:57.200 --> 00:14:59.640 a team that can deliver consistently. 431 00:14:59.640 --> 00:15:00.800 He lacks that skill. 432 00:15:00.800 --> 00:15:02.720 And so honestly, what happens to that person 433 00:15:02.720 --> 00:15:05.240 over time, their reputation gets degraded. 434 00:15:05.240 --> 00:15:08.880 You start saying this guy has been, he's washed up. 435 00:15:08.880 --> 00:15:10.640 All he does is promote new stuff. 436 00:15:10.640 --> 00:15:11.840 He's a shell. 437 00:15:11.840 --> 00:15:14.240 He just sells whatever is hot. 438 00:15:14.240 --> 00:15:16.320 And many of you are that person. 439 00:15:20.240 --> 00:15:22.520 And so keep trying to find new ways to get leads 440 00:15:22.560 --> 00:15:25.680 when you just can't keep your promises. 441 00:15:25.680 --> 00:15:28.640 If you keep your promises and you put all your focus there, 442 00:15:28.640 --> 00:15:32.160 your CAC will go down and will continue to go down. 443 00:15:32.160 --> 00:15:35.080 And that's what's crazy is that the more you do that, 444 00:15:35.080 --> 00:15:36.920 the more you reinforce the brand loop. 445 00:15:36.920 --> 00:15:38.800 Because you make a promise, you keep that promise. 446 00:15:38.800 --> 00:15:40.200 And then the people you keep the promise to, 447 00:15:40.200 --> 00:15:41.760 tell other people you kept the promise. 448 00:15:41.760 --> 00:15:45.000 And then that decreases your CAC, the inverse of that. 449 00:15:45.000 --> 00:15:47.560 And there's a quantitative test for this. 450 00:15:48.440 --> 00:15:50.600 If you run advertisements 451 00:15:50.640 --> 00:15:55.080 and your cost to acquire a customer increases 452 00:15:55.080 --> 00:15:58.280 at a faster rate than the average cost of CPMs, 453 00:15:58.280 --> 00:16:00.560 the cost per impression in your market, 454 00:16:00.560 --> 00:16:04.600 then it means you have word of mouth working against you. 455 00:16:05.880 --> 00:16:06.960 Think about this. 456 00:16:06.960 --> 00:16:09.040 Everyone understands positive word of mouth. 457 00:16:09.040 --> 00:16:10.440 We all get that, right? 458 00:16:10.440 --> 00:16:12.120 We're like, oh yeah, I get referrals. 459 00:16:12.120 --> 00:16:14.840 Did you know that you have far more negative referrals? 460 00:16:14.840 --> 00:16:16.480 You have way more detractors. 461 00:16:16.480 --> 00:16:18.520 You have way more people that when they see an ad 462 00:16:18.520 --> 00:16:20.320 of your business, what do they do? 463 00:16:20.320 --> 00:16:22.640 They reach out to other people to ask about you. 464 00:16:22.640 --> 00:16:26.480 And then people who would have purchased choose not to 465 00:16:26.480 --> 00:16:28.960 based on information they get online 466 00:16:28.960 --> 00:16:30.720 or asking someone they know. 467 00:16:31.680 --> 00:16:33.920 And so your conversion rate decreases over time. 468 00:16:33.920 --> 00:16:35.560 You complain that ads are working. 469 00:16:35.560 --> 00:16:38.040 When in reality, all of this is the invisible hand 470 00:16:38.040 --> 00:16:39.560 of your product sucking. 471 00:16:39.560 --> 00:16:42.080 I get passionate about this because I just, 472 00:16:42.080 --> 00:16:47.080 I see it so many times and it's the thing that keeps you stuck. 473 00:16:47.480 --> 00:16:49.640 And so the only way to combat this is to become 474 00:16:49.680 --> 00:16:53.600 a world-class marketer and just only know how to sell shit. 475 00:16:53.600 --> 00:16:56.520 And hey, if you're selling to a really big market, 476 00:16:56.520 --> 00:16:57.600 and I'm be honest with you, 477 00:16:57.600 --> 00:16:59.480 there's a lot of really big name marketers 478 00:16:59.480 --> 00:17:01.200 that the only reason they make money 479 00:17:01.200 --> 00:17:03.840 is because they sell to the ocean of humanity 480 00:17:03.840 --> 00:17:06.200 and they only need one transaction. 481 00:17:06.200 --> 00:17:08.000 And they spend all of their trying time 482 00:17:08.000 --> 00:17:10.400 trying to arbitrage media. 483 00:17:10.400 --> 00:17:12.240 As in, they know what their cost for impression is, 484 00:17:12.240 --> 00:17:13.000 they know how much they make 485 00:17:13.000 --> 00:17:14.920 and they just jam as much as they can in there. 486 00:17:14.920 --> 00:17:16.680 But that's not a business. 487 00:17:16.680 --> 00:17:20.040 That is a cash flow job that you get really good at 488 00:17:20.040 --> 00:17:21.240 with that skill. 489 00:17:21.240 --> 00:17:23.680 But that's also why marketers have terrible reputations. 490 00:17:23.680 --> 00:17:25.680 Building a brand is, in my opinion, 491 00:17:25.680 --> 00:17:27.480 the good side of marketing. 492 00:17:27.480 --> 00:17:29.360 And the brand is simply the associations 493 00:17:29.360 --> 00:17:31.800 that people have with your product. 494 00:17:31.800 --> 00:17:34.680 And if those associations are positive, 495 00:17:34.680 --> 00:17:36.240 then you build that reputation. 496 00:17:36.240 --> 00:17:39.160 You build that positive association and that takes time. 497 00:17:40.160 --> 00:17:43.480 But if you make the brand your end goal, 498 00:17:44.480 --> 00:17:47.840 then you will be able to charge higher prices 499 00:17:47.840 --> 00:17:50.000 than other people for the exact same thing 500 00:17:50.000 --> 00:17:51.520 and people will purchase from you 501 00:17:51.520 --> 00:17:53.840 because from a value equation perspective, 502 00:17:53.840 --> 00:17:56.040 their perceived likely of achievement goes up, 503 00:17:56.040 --> 00:17:58.080 their risk associated with the purchase in terms of 504 00:17:58.080 --> 00:17:59.280 what they believe their ease 505 00:17:59.280 --> 00:18:02.800 and the ease of achieving what they're going to get goes up. 506 00:18:02.800 --> 00:18:05.360 And even if your time delay is slower, 507 00:18:05.360 --> 00:18:07.680 they have so much conviction that you're going to deliver 508 00:18:07.680 --> 00:18:11.040 on your promise that they're willing to pay the premium. 509 00:18:11.160 --> 00:18:15.360 And so your cost to acquire customers goes down at scale. 510 00:18:15.360 --> 00:18:18.920 Brand-driven advertising is more profitable 511 00:18:18.920 --> 00:18:22.040 than the pure, scammy, direct response stuff. 512 00:18:23.720 --> 00:18:25.000 It just takes longer. 513 00:18:25.920 --> 00:18:27.840 But the row-as is insane. 514 00:18:27.840 --> 00:18:31.520 It's not like 2X, 3X, it's like 30, 100X. 515 00:18:31.520 --> 00:18:32.960 It's way bigger. 516 00:18:32.960 --> 00:18:35.760 And that's how companies like Apple print money. 517 00:18:35.760 --> 00:18:37.040 They print money. 518 00:18:37.040 --> 00:18:39.440 Look at their marketing spin, they print money 519 00:18:39.480 --> 00:18:40.800 because they have a line of customers 520 00:18:40.800 --> 00:18:42.200 that bought their last product. 521 00:18:42.200 --> 00:18:46.240 And just by knowing that they have a good reputation 522 00:18:46.240 --> 00:18:48.560 of delivering on their promises, they buy the next one. 523 00:18:48.560 --> 00:18:50.080 And so I'll tell you a story that happened for the, 524 00:18:50.080 --> 00:18:53.080 one of the probably the first time I really saw this 525 00:18:53.080 --> 00:18:56.800 was when I was, I was probably a year in a gym launch, 526 00:18:56.800 --> 00:18:59.360 we're ripping and roaring, right, in terms of scale 527 00:18:59.360 --> 00:19:00.720 and everyone's just printing money 528 00:19:00.720 --> 00:19:02.600 using the system that we had, right? 529 00:19:02.600 --> 00:19:05.920 And I launched something called, 530 00:19:05.920 --> 00:19:07.280 I think I called it LNS at the time, 531 00:19:07.280 --> 00:19:08.760 which was like lead nurture system, 532 00:19:08.760 --> 00:19:09.600 that's something like that. 533 00:19:09.600 --> 00:19:10.920 I can't remember what I called it. 534 00:19:10.920 --> 00:19:12.720 But basically, it was we, no, ALN, 535 00:19:12.720 --> 00:19:14.240 it was automated lead nurture, that's what it was. 536 00:19:14.240 --> 00:19:15.080 ALN. 537 00:19:15.080 --> 00:19:17.120 And so I did this big webinar, I did this big launch 538 00:19:17.120 --> 00:19:18.880 and because gym owners are business owners, 539 00:19:18.880 --> 00:19:19.720 there was a number of them 540 00:19:19.720 --> 00:19:21.400 that couldn't make it on the live. 541 00:19:21.400 --> 00:19:23.520 But they heard that I had sold this thing, 542 00:19:24.800 --> 00:19:29.040 the amount of people that reached out after the webinar, 543 00:19:29.040 --> 00:19:30.680 not having seen the webinar and said, 544 00:19:30.680 --> 00:19:32.720 hey, here's my credit card number, whatever it is, 545 00:19:32.720 --> 00:19:33.720 just give it to me. 546 00:19:33.720 --> 00:19:36.080 If he launched it, I know it's good. 547 00:19:36.080 --> 00:19:38.280 I had never had that happen in my life. 548 00:19:38.280 --> 00:19:41.240 And I was like, how do I never stop this from happening? 549 00:19:41.240 --> 00:19:44.240 Again, I want this to always be my norm. 550 00:19:44.240 --> 00:19:48.040 And it reinforced so strongly how important it was 551 00:19:48.040 --> 00:19:49.800 to keep your promises. 552 00:19:49.800 --> 00:19:53.520 And so there's a relationship that I think is missed a lot, 553 00:19:53.520 --> 00:19:55.920 especially in the info and online space, 554 00:19:55.920 --> 00:19:58.200 and I want to hit on this, but it applies to all businesses, 555 00:19:58.200 --> 00:20:01.520 is that there's three lines that you have to keep in touch with. 556 00:20:01.520 --> 00:20:04.640 You have the price that you charge, 557 00:20:04.640 --> 00:20:06.800 you have the value that they get, 558 00:20:06.800 --> 00:20:10.760 and then you have the cost associated with delivering the thing. 559 00:20:10.760 --> 00:20:12.760 And so you want these lines to be as far 560 00:20:12.760 --> 00:20:14.680 apart as humanly possible. 561 00:20:14.680 --> 00:20:17.840 All of them, you want them to be spread out super, super far. 562 00:20:17.840 --> 00:20:20.760 You want to have crazy high value at the top. 563 00:20:20.760 --> 00:20:23.000 You want a price that's a premium. 564 00:20:23.000 --> 00:20:25.280 And then you want to have a lot of juice leftover 565 00:20:25.280 --> 00:20:26.840 relative to your cost. 566 00:20:27.840 --> 00:20:30.920 And the way to get that kind of space between your cost 567 00:20:30.920 --> 00:20:34.440 and your price is to do the work of the hundred details 568 00:20:34.440 --> 00:20:36.800 that your competitors aren't willing to do. 569 00:20:36.800 --> 00:20:40.360 They're not willing to find out that when someone walks in the restaurant, 570 00:20:40.360 --> 00:20:42.400 if we just, we find out what their name is at the car, 571 00:20:42.400 --> 00:20:43.680 we can greet him by name. 572 00:20:43.680 --> 00:20:45.000 Small thing, right? 573 00:20:45.000 --> 00:20:49.680 And we have the waitresses all right down on the receipt, 574 00:20:49.680 --> 00:20:51.880 what their name is, and say, thanks for coming in. 575 00:20:51.880 --> 00:20:54.640 Ow, whatever, right? 576 00:20:54.640 --> 00:20:58.400 And we try to make sure that they all get their waters within 30 seconds 577 00:20:58.400 --> 00:20:59.360 of sitting down. 578 00:20:59.360 --> 00:21:01.600 We make sure that they get their bread within two minutes. 579 00:21:01.600 --> 00:21:06.160 We make sure that we check in every five or every 10 or whatever we've tested 580 00:21:06.160 --> 00:21:07.880 has been the right amount. 581 00:21:07.880 --> 00:21:10.760 And maybe it maybe comes down to asking the customer up front. 582 00:21:10.760 --> 00:21:12.480 Hey, is this something you want to like, 583 00:21:12.480 --> 00:21:14.040 do you want me to come like, this is a fast dinner 584 00:21:14.040 --> 00:21:16.000 or is this something you want to kind of like juice and enjoy? 585 00:21:16.000 --> 00:21:17.720 I will match your cadence. 586 00:21:17.720 --> 00:21:20.720 Maybe simply asking the question draws attention to the fact that you care. 587 00:21:20.720 --> 00:21:22.000 It might not even matter what you do, 588 00:21:22.000 --> 00:21:24.800 but maybe simply asking the question improves their experience. 589 00:21:24.800 --> 00:21:28.080 And so it's these hundred babies, no silver bullets. 590 00:21:28.120 --> 00:21:31.600 That the good news is that your competition is lazy as fuck. 591 00:21:31.600 --> 00:21:32.640 It's so easy. 592 00:21:32.640 --> 00:21:36.000 Think about how many business, like I do business with a lot of businesses 593 00:21:36.000 --> 00:21:37.640 on a personal level, on a business level. 594 00:21:37.640 --> 00:21:40.280 I would not recommend most of them. 595 00:21:40.280 --> 00:21:43.760 And the thing is is that those vendors think that I'm an amazing customer. 596 00:21:43.760 --> 00:21:46.720 I'm a hair away from being a detractor. 597 00:21:46.720 --> 00:21:49.720 And many of you have customers that are a hair away from being a tracker. 598 00:21:49.720 --> 00:21:51.800 Sometimes you got customers who pay for your thing 599 00:21:51.800 --> 00:21:53.640 and still tell people not to buy it. 600 00:21:54.680 --> 00:21:57.200 My pool guy, when I had a pool, I don't have a pool anymore, 601 00:21:57.200 --> 00:22:00.920 when I had a pool, that guy was so inconsistent. 602 00:22:00.920 --> 00:22:02.480 He didn't clean stuff all the time. 603 00:22:02.480 --> 00:22:03.720 I'd walk out after he was being like, 604 00:22:03.720 --> 00:22:07.080 what did he even do anything this week, right? 605 00:22:07.080 --> 00:22:09.720 But I still paid because it was just such a hassle to change. 606 00:22:09.720 --> 00:22:11.640 But I was absolutely detractor in my neighbors, like, 607 00:22:11.640 --> 00:22:12.840 oh yeah, who's your pool service? 608 00:22:12.840 --> 00:22:14.120 I'm like, don't use my guy. 609 00:22:14.120 --> 00:22:15.760 I just don't have time to find somebody else. 610 00:22:15.760 --> 00:22:17.240 They're like, oh, thanks. 611 00:22:17.240 --> 00:22:19.880 And that small business owner is like, man, 612 00:22:19.880 --> 00:22:21.720 I have such a great business. 613 00:22:21.920 --> 00:22:26.680 Like, and like, we'd have gym owners who thought that their, 614 00:22:26.680 --> 00:22:28.320 their gyms were hot shit. 615 00:22:28.320 --> 00:22:29.960 And then somebody opens up across the street 616 00:22:29.960 --> 00:22:31.280 and literally takes all their customers 617 00:22:31.280 --> 00:22:33.000 when they didn't realize that the main reason 618 00:22:33.000 --> 00:22:35.280 people went to their gym is it was just convenient. 619 00:22:36.280 --> 00:22:37.720 They thought all of their workouts, 620 00:22:37.720 --> 00:22:39.000 they thought all of their music. 621 00:22:39.000 --> 00:22:42.080 They thought they thought the layout of the gym, 622 00:22:42.080 --> 00:22:44.040 the equipment, they thought all of that was important. 623 00:22:44.040 --> 00:22:46.440 But the thing that mattered most was that you just happen 624 00:22:46.440 --> 00:22:49.520 to be the only gym in a five mile radius of this spot. 625 00:22:51.720 --> 00:22:53.600 And so a lot of times the thing that the reason 626 00:22:53.600 --> 00:22:56.280 that you're winning, you don't even know why you're winning. 627 00:22:57.280 --> 00:22:59.880 And so Professor Berglman from Stanford said this. 628 00:22:59.880 --> 00:23:03.920 He said, it's better to know why you have failed 629 00:23:03.920 --> 00:23:06.040 than to succeed and not know why. 630 00:23:06.040 --> 00:23:08.520 And I always, I think that's a very profound statement 631 00:23:08.520 --> 00:23:10.360 because for us as business owners, 632 00:23:10.360 --> 00:23:13.080 we were always willing to attribute negative things 633 00:23:13.080 --> 00:23:14.280 to outside forces, right? 634 00:23:14.280 --> 00:23:16.760 We're always willing to say, oh, you know, COVID happened. 635 00:23:16.760 --> 00:23:19.400 My business got hurt or whatever, right? 636 00:23:19.400 --> 00:23:22.080 The economy's bad, credit rates are compressing. 637 00:23:23.360 --> 00:23:25.440 But we aren't willing to give outside forces 638 00:23:25.440 --> 00:23:26.840 the credit for when we do well. 639 00:23:26.840 --> 00:23:27.840 We're like, oh, no, that was me. 640 00:23:27.840 --> 00:23:28.680 That was that marketing issue. 641 00:23:28.680 --> 00:23:30.920 Oh, yeah, that's because we've been really working on the team. 642 00:23:30.920 --> 00:23:33.000 It might just be nothing to do with you at all. 643 00:23:33.000 --> 00:23:34.760 And so understanding what are the drivers 644 00:23:34.760 --> 00:23:36.760 that actually drove the success? 645 00:23:36.760 --> 00:23:38.480 Are some of the things that you have to find out 646 00:23:38.480 --> 00:23:40.120 that your competition doesn't know. 647 00:23:40.120 --> 00:23:43.560 So many business owners just believe in mythology. 648 00:23:43.560 --> 00:23:46.600 They just make up narratives around why they're successful 649 00:23:46.600 --> 00:23:48.480 and they have no way to prove it. 650 00:23:48.480 --> 00:23:49.520 One of the things that I see people 651 00:23:49.520 --> 00:23:51.520 just melt in front of me when I ask, they're like, 652 00:23:51.520 --> 00:23:54.440 well, they basically tell me a story about their business. 653 00:23:54.440 --> 00:23:57.000 They say, well, people don't do that because. 654 00:23:57.000 --> 00:23:59.160 And then they insert some make-believe thing. 655 00:23:59.160 --> 00:24:01.160 And I say, how do you know that? 656 00:24:02.760 --> 00:24:04.080 And then they just look at me. 657 00:24:04.080 --> 00:24:05.240 Like, how do you know that? 658 00:24:05.240 --> 00:24:06.920 They don't. 659 00:24:06.920 --> 00:24:08.080 They've never measured it. 660 00:24:09.320 --> 00:24:11.240 I had a vendor recently who was like, 661 00:24:11.240 --> 00:24:13.440 hey, we need to do this, this and this 662 00:24:13.440 --> 00:24:14.960 with something on media. 663 00:24:14.960 --> 00:24:17.040 And I was like, okay, why? 664 00:24:17.960 --> 00:24:20.920 He was like, well, this is gonna create more growth. 665 00:24:20.920 --> 00:24:22.920 And I said, how do you know that? 666 00:24:22.920 --> 00:24:24.520 And then he gave me another step. 667 00:24:24.520 --> 00:24:26.320 And that step was derived from the first step 668 00:24:26.320 --> 00:24:27.160 that he said to increase. 669 00:24:27.160 --> 00:24:28.400 He said, when this increases, this increases. 670 00:24:28.400 --> 00:24:31.360 I was like, no shit, do you know how math works? 671 00:24:31.360 --> 00:24:33.520 Of course, of course it does. 672 00:24:33.520 --> 00:24:36.080 Now, to be clear, I don't think this was out of malice, 673 00:24:36.080 --> 00:24:37.040 to be very clear. 674 00:24:37.960 --> 00:24:40.160 But no one thinks. 675 00:24:40.160 --> 00:24:42.920 And the good news is your competition doesn't think either. 676 00:24:44.000 --> 00:24:45.520 And so if you want to win, 677 00:24:45.520 --> 00:24:48.160 you just need to stop, like whenever someone 678 00:24:48.160 --> 00:24:49.920 gives you a buckuss statement in your team, 679 00:24:49.920 --> 00:24:51.440 just ignore it. 680 00:24:51.440 --> 00:24:52.800 And if they do give it to you, 681 00:24:52.800 --> 00:24:54.960 and you insist on trying to listen to it, 682 00:24:54.960 --> 00:24:56.840 then say, how do you know that? 683 00:24:58.080 --> 00:24:58.840 And most of the time, they're like, 684 00:24:58.840 --> 00:24:59.840 well, you know, gut feeling like, 685 00:24:59.840 --> 00:25:01.600 oh, your gut feeling's been nothing to me. 686 00:25:01.600 --> 00:25:02.840 If you haven't tracked it, 687 00:25:02.840 --> 00:25:04.840 and you've no data to support it, 688 00:25:04.840 --> 00:25:07.120 then you, I can make up things too. 689 00:25:07.120 --> 00:25:10.640 When you hear podcasts of business people, 690 00:25:10.640 --> 00:25:13.240 and they're telling you the things that work for them, 691 00:25:13.240 --> 00:25:14.800 the crazy thing is that most of the time, 692 00:25:14.800 --> 00:25:17.080 they don't know either. 693 00:25:17.080 --> 00:25:18.640 And so this is what drives me nuts. 694 00:25:18.640 --> 00:25:21.920 People are like, hey, Alex, do you think that, 695 00:25:21.920 --> 00:25:23.680 you know, having a hard childhood, 696 00:25:23.680 --> 00:25:25.680 even having a troubled relationship with your father, 697 00:25:25.680 --> 00:25:27.040 I don't, we're fine, right? 698 00:25:27.040 --> 00:25:30.760 But do you think that is the reason that you're so driven? 699 00:25:30.760 --> 00:25:34.440 And I'm like, I don't know, how would I know? 700 00:25:34.440 --> 00:25:36.480 I know that I am driven. 701 00:25:36.480 --> 00:25:38.640 There's a zillion things that have happened to me in my life. 702 00:25:38.640 --> 00:25:40.080 I don't know which one it is, 703 00:25:40.080 --> 00:25:42.520 but we create these narratives around it to believe it. 704 00:25:42.600 --> 00:25:45.120 And I'm bringing this kind of conceptual idea 705 00:25:45.120 --> 00:25:48.440 because right now many of you are creating stories 706 00:25:48.440 --> 00:25:51.160 that you tell yourselves to make yourself feel better 707 00:25:51.160 --> 00:25:53.960 about why your product isn't as good as it should be, 708 00:25:53.960 --> 00:25:56.560 but you have an excuse that only you need to believe. 709 00:25:56.560 --> 00:25:58.040 And you believe that excuse, 710 00:25:58.040 --> 00:26:00.400 so it excuses you from working harder on the stuff 711 00:26:00.400 --> 00:26:02.200 you know you should be doing but aren't. 712 00:26:02.200 --> 00:26:05.400 And that work, the work you know you should be doing 713 00:26:05.400 --> 00:26:07.480 but aren't is the opportunity, 714 00:26:07.480 --> 00:26:09.480 because that is the work that your competitors 715 00:26:09.480 --> 00:26:11.440 also aren't doing. 716 00:26:11.440 --> 00:26:13.680 And I'm telling you, from the bottom of my soul, 717 00:26:13.680 --> 00:26:16.400 it is so easy to beat people today. 718 00:26:16.400 --> 00:26:18.960 They are so soft, they have no work ethic, 719 00:26:18.960 --> 00:26:20.360 no one gets sick with anything. 720 00:26:20.360 --> 00:26:22.040 Everyone's distracted, they're in social media, 721 00:26:22.040 --> 00:26:23.600 they're kind of, they're fucking notifications 722 00:26:23.600 --> 00:26:25.720 because they can't stick with shit. 723 00:26:25.720 --> 00:26:27.480 They can't say no. 724 00:26:27.480 --> 00:26:29.520 And so sometimes you gotta say, hey guys, 725 00:26:29.520 --> 00:26:31.320 we're gonna stay at this revenue level 726 00:26:31.320 --> 00:26:33.560 until we get referrals over 30%. 727 00:26:34.920 --> 00:26:36.400 We're gonna stay at this revenue level, 728 00:26:36.400 --> 00:26:37.760 we're gonna stay at this level of advertising, 729 00:26:37.760 --> 00:26:39.320 I don't want anyone else to know 730 00:26:39.320 --> 00:26:41.440 how mediocre our sandwiches are. 731 00:26:41.440 --> 00:26:43.200 Why would I tell anyone else? 732 00:26:43.200 --> 00:26:44.320 I don't want anyone to know. 733 00:26:44.320 --> 00:26:46.720 If I could test this with no one knowing, I would do it, 734 00:26:46.720 --> 00:26:48.240 but we have to advertise a little bit 735 00:26:48.240 --> 00:26:49.760 so we can fix our thing. 736 00:26:49.760 --> 00:26:53.440 But the point of that first phase of growing the business 737 00:26:53.440 --> 00:26:56.360 because you start making sales is to get better, 738 00:26:56.360 --> 00:26:57.600 not to get rich. 739 00:26:58.840 --> 00:27:02.320 The point in the first phase is to learn, not to earn. 740 00:27:02.320 --> 00:27:04.880 If I started a new cleaning business tomorrow, 741 00:27:04.880 --> 00:27:07.000 the first year would just be trying to nail the model. 742 00:27:07.000 --> 00:27:09.440 I would be thinking about what we're growing every month. 743 00:27:09.440 --> 00:27:11.080 I wouldn't care. 744 00:27:11.080 --> 00:27:13.480 I would only be focused on how could he make this experience 745 00:27:13.480 --> 00:27:15.040 so that no one leaves? 746 00:27:15.040 --> 00:27:16.680 And that's all my obsession is because I know 747 00:27:16.680 --> 00:27:18.240 that once that happens, 748 00:27:18.240 --> 00:27:20.040 whether you sell one customer a month 749 00:27:20.040 --> 00:27:22.640 or five customers a month or 10 customers a month, 750 00:27:22.640 --> 00:27:25.360 your business will not stop growing. 751 00:27:26.280 --> 00:27:30.920 If you do not lose customers, your business will not stop growing. 752 00:27:30.920 --> 00:27:33.000 And so whatever one of your competitors are looking 753 00:27:33.000 --> 00:27:34.800 for cheaper leads and trying to find the new place 754 00:27:34.800 --> 00:27:37.160 and then do their little hacky Instagram thing, 755 00:27:37.160 --> 00:27:39.000 you can sleep well at night knowing, 756 00:27:39.000 --> 00:27:41.040 I sold 10 customers last month. 757 00:27:41.040 --> 00:27:44.080 And this month, I'll sell another 10, but I'll have 20. 758 00:27:44.080 --> 00:27:46.880 And the month after that, I'll sell 10 and I'll have 30. 759 00:27:46.880 --> 00:27:49.640 And the month after that, I'll sell 10 and I'll have 40. 760 00:27:49.640 --> 00:27:51.920 And we will just keep fucking growing 761 00:27:51.920 --> 00:27:55.640 because I spent a year or two years or five years 762 00:27:55.640 --> 00:28:00.360 figuring out exactly what to do that delivered for my customer. 763 00:28:00.360 --> 00:28:02.400 And that is the work that no one will do. 764 00:28:02.400 --> 00:28:05.080 And that is why entrepreneurship is much more 765 00:28:05.080 --> 00:28:09.360 a battle of wills than it is a battle of intellect. 766 00:28:09.360 --> 00:28:11.720 You have to be willing to delay gratification 767 00:28:11.720 --> 00:28:13.640 for an extended period of time and eat glass 768 00:28:13.640 --> 00:28:16.120 and that eating of glass is seeing how many failures 769 00:28:16.120 --> 00:28:18.000 you have until you get it right. 770 00:28:18.000 --> 00:28:19.640 And this is the difference between small businesses 771 00:28:19.640 --> 00:28:22.680 and big businesses is their willingness to put up 772 00:28:22.680 --> 00:28:25.960 with that long period of time of getting the product right. 773 00:28:27.000 --> 00:28:29.200 And then once you get it right, you can scale to the moon 774 00:28:29.200 --> 00:28:31.520 because you will make more than everyone else on your back end. 775 00:28:31.520 --> 00:28:32.920 You will deliver on your promises. 776 00:28:32.920 --> 00:28:34.680 Your brand will be reinforced with every sale 777 00:28:34.680 --> 00:28:36.360 rather than degraded with every sale. 778 00:28:36.360 --> 00:28:38.920 And then at scale, you will continue to be able 779 00:28:38.920 --> 00:28:39.880 to acquire customers properly 780 00:28:39.880 --> 00:28:42.400 because you have a force that is compounding 781 00:28:42.400 --> 00:28:44.160 which is the referral base of customers 782 00:28:44.160 --> 00:28:46.720 that tells other people how good your stuff is 783 00:28:46.720 --> 00:28:49.400 while also continuing to purchase themselves. 784 00:28:49.400 --> 00:28:52.000 So in Silicon Valley, they have a saying which is, 785 00:28:52.000 --> 00:28:53.600 break things move fast. 786 00:28:53.600 --> 00:28:56.760 I think that was one of Facebook's early values. 787 00:28:56.760 --> 00:28:59.080 That break fast and move stuff is building back to front. 788 00:28:59.080 --> 00:29:01.240 That is building the product through iteration 789 00:29:01.280 --> 00:29:03.080 so that you can have extended LTV 790 00:29:03.080 --> 00:29:04.920 so that you can have the activation of users 791 00:29:04.920 --> 00:29:06.800 so that, because fundamentally think about this way, 792 00:29:06.800 --> 00:29:09.000 if Facebook did not get users activated 793 00:29:09.000 --> 00:29:10.440 and they were like, we need to spend more on marketing 794 00:29:10.440 --> 00:29:13.920 so we can get more users, it would never work at scale. 795 00:29:13.920 --> 00:29:17.120 It has to have a compounding vehicle built within the business. 796 00:29:17.120 --> 00:29:18.800 And the compounding vehicle in the business 797 00:29:18.800 --> 00:29:20.800 for most businesses is the quality of their product. 798 00:29:20.800 --> 00:29:22.640 That is the compounding vehicle. 799 00:29:22.640 --> 00:29:24.160 You have to get people to continue to buy 800 00:29:24.160 --> 00:29:26.760 or continue to use in Facebook's case. 801 00:29:26.760 --> 00:29:28.920 And so they have to think about how can we eliminate friction 802 00:29:28.920 --> 00:29:30.120 in a hundred different ways 803 00:29:30.120 --> 00:29:30.960 so that we can make it smoother. 804 00:29:31.000 --> 00:29:32.680 And this is what we work on at school all the time 805 00:29:32.680 --> 00:29:34.520 is how can we make this easier, how can we make this faster, 806 00:29:34.520 --> 00:29:35.760 how can we make this more streamlined 807 00:29:35.760 --> 00:29:37.600 so that anybody can be successful with it. 808 00:29:37.600 --> 00:29:39.960 And most small business owners fix one or two things 809 00:29:39.960 --> 00:29:41.000 and then they immediately want to scale, 810 00:29:41.000 --> 00:29:42.680 they want to gas the advertising to make more sales. 811 00:29:42.680 --> 00:29:45.240 And the problem with that is that it does this. 812 00:29:45.240 --> 00:29:47.360 So you increase sales. 813 00:29:47.360 --> 00:29:49.240 And so by percentage growth, it'll be really aggressive 814 00:29:49.240 --> 00:29:50.320 and then it starts slowing down. 815 00:29:50.320 --> 00:29:52.120 And you can always tell growth in businesses like this, 816 00:29:52.120 --> 00:29:54.360 especially at the $10, $30, $100 million mark 817 00:29:54.360 --> 00:29:56.680 and they're not even close to their total dressable market 818 00:29:56.680 --> 00:29:57.640 because the only way they grew 819 00:29:57.640 --> 00:29:59.400 is through jamming sales and marketing 820 00:29:59.440 --> 00:30:01.360 not through having a product that compounded. 821 00:30:01.360 --> 00:30:02.960 And so that is the big difference 822 00:30:02.960 --> 00:30:05.080 between massive multiples and companies 823 00:30:05.080 --> 00:30:07.960 when you sell for 20x, 50x, you know, massive numbers 824 00:30:07.960 --> 00:30:10.000 because the person who's acquiring it has no doubt 825 00:30:10.000 --> 00:30:12.120 that that business will continue to compound and grow. 826 00:30:12.120 --> 00:30:13.960 If the business is purely based on marketing sales 827 00:30:13.960 --> 00:30:16.280 then they know that it's only as good as this last month 828 00:30:16.280 --> 00:30:17.480 and if the marketing director leaves 829 00:30:17.480 --> 00:30:19.280 or their sales channel gets shut down 830 00:30:19.280 --> 00:30:21.000 then the business is gonna rapidly decline. 831 00:30:21.000 --> 00:30:23.520 And so not only does it make the company significantly more valuable, 832 00:30:23.520 --> 00:30:26.800 it also makes life a lot more chill as an entrepreneur 833 00:30:26.840 --> 00:30:29.200 because you know that this month, like last month, 834 00:30:29.200 --> 00:30:30.760 like two years ago, the customer you bought, 835 00:30:30.760 --> 00:30:32.520 you sold two years ago, put all that effort in, 836 00:30:32.520 --> 00:30:33.840 they're still buying today. 837 00:30:33.840 --> 00:30:36.440 Improving your product is the highest leverage thing you can do 838 00:30:36.440 --> 00:30:38.960 because every single person gets that product. 839 00:30:38.960 --> 00:30:40.600 And so you work on it one time 840 00:30:40.600 --> 00:30:45.080 and then it's, you know, cut once sell a hundred times, 841 00:30:45.080 --> 00:30:47.160 cut once sell a thousand times. 842 00:30:47.160 --> 00:30:49.560 Whereas marketing is a linear relationship. 843 00:30:49.560 --> 00:30:51.760 You have to go market more to get more customers 844 00:30:51.760 --> 00:30:53.200 but if you continue to improve the product 845 00:30:53.200 --> 00:30:55.640 that thing can get you 100 times more customers 846 00:30:55.640 --> 00:30:57.280 or massively increase LTV. 847 00:30:57.280 --> 00:30:59.200 And so you get a disproportionate return 848 00:30:59.200 --> 00:31:00.920 on the effort you put in on making your thing better 849 00:31:00.920 --> 00:31:02.400 than you do on getting more customers. 850 00:31:02.400 --> 00:31:05.320 Chunking up, what we're tracking with product 851 00:31:05.320 --> 00:31:08.080 is the price that we're able to command 852 00:31:08.080 --> 00:31:10.200 for our services or our product. 853 00:31:10.200 --> 00:31:13.280 The number of recurring purchases that we have from somebody. 854 00:31:13.280 --> 00:31:14.800 So if you have a reoccurring business 855 00:31:14.800 --> 00:31:15.880 it's average number of orders 856 00:31:15.880 --> 00:31:17.920 that someone's going to make with your business 857 00:31:17.920 --> 00:31:20.360 over a lifetime or it's the turn associated 858 00:31:20.360 --> 00:31:21.760 with your subscription or membership. 859 00:31:21.760 --> 00:31:24.400 And so these give you the quantitative outputs 860 00:31:24.400 --> 00:31:26.200 of a high quality product. 861 00:31:26.200 --> 00:31:28.080 But the inputs are going to be closer to 862 00:31:28.080 --> 00:31:29.600 what are their activation metrics. 863 00:31:29.600 --> 00:31:31.440 Like what is, and the way that you look at this 864 00:31:31.440 --> 00:31:33.840 is you do something called a regression analysis around, 865 00:31:33.840 --> 00:31:35.280 okay, let's look at the cohort of customers 866 00:31:35.280 --> 00:31:36.920 that don't cancel because there is hopefully 867 00:31:36.920 --> 00:31:38.520 some customers that don't leave you. 868 00:31:38.520 --> 00:31:41.000 And you look at what things occurred in, 869 00:31:41.000 --> 00:31:42.560 and you have to look at a lot of variables 870 00:31:42.560 --> 00:31:46.600 of what things occurred in those customers 871 00:31:46.600 --> 00:31:48.080 that haven't occurred in other customers. 872 00:31:48.080 --> 00:31:50.080 And then once you find those things that occurred 873 00:31:50.080 --> 00:31:51.880 those become activation points 874 00:31:51.880 --> 00:31:54.080 or at least your first guess at activation points. 875 00:31:54.120 --> 00:31:55.880 And then what you do is you drive your onboarding 876 00:31:55.880 --> 00:31:57.320 towards that activation point, 877 00:31:57.320 --> 00:31:58.760 some people got a retention point, 878 00:31:58.760 --> 00:32:00.600 and then you re-measure again. 879 00:32:00.600 --> 00:32:03.960 And so if you know that once people achieve a sale 880 00:32:03.960 --> 00:32:05.920 from SEO for your agency that the likelihood 881 00:32:05.920 --> 00:32:07.640 the cancel goes down precipitously, 882 00:32:07.640 --> 00:32:09.200 then all of your effort for onboarding 883 00:32:09.200 --> 00:32:11.680 is how quickly can we get them a sale from our SEO? 884 00:32:11.680 --> 00:32:13.320 If it's for weight loss you find out 885 00:32:13.320 --> 00:32:15.040 that somebody needs to lose seven pounds in the first two weeks 886 00:32:15.040 --> 00:32:16.240 and if they lose the weight, 887 00:32:16.240 --> 00:32:18.080 then the likelihood they continue to stay is very high. 888 00:32:18.080 --> 00:32:19.360 So then you drive all of your activation 889 00:32:19.360 --> 00:32:21.440 you're onboarding towards getting to that point. 890 00:32:21.520 --> 00:32:24.880 And so everything is about looking at the people at the end, 891 00:32:24.880 --> 00:32:27.760 looking to think that preceded them getting to that point 892 00:32:27.760 --> 00:32:29.760 and then putting all of your focus on getting people 893 00:32:29.760 --> 00:32:30.920 to have that experience. 894 00:32:30.920 --> 00:32:34.160 At the most basic level, I had a first book 895 00:32:34.160 --> 00:32:37.160 and many people who bought this book and liked it 896 00:32:37.160 --> 00:32:39.920 bought the second book when it came out. 897 00:32:39.920 --> 00:32:41.000 Obviously we had a launch, 898 00:32:41.000 --> 00:32:43.680 but the thing is is that we still sell thousands 899 00:32:43.680 --> 00:32:45.720 and thousands and thousands and thousands of copies 900 00:32:45.720 --> 00:32:47.480 at this book every single month. 901 00:32:47.480 --> 00:32:49.720 And even though this book is two and a half 902 00:32:49.800 --> 00:32:51.560 or three years old or whatever it is, 903 00:32:51.560 --> 00:32:53.840 this book still sells thousands and thousands 904 00:32:53.840 --> 00:32:55.240 and thousands of copies every month 905 00:32:55.240 --> 00:32:57.000 because there's also new people every month 906 00:32:57.000 --> 00:32:58.120 that are getting into entrepreneurship 907 00:32:58.120 --> 00:33:00.080 or want to learn about making better offers 908 00:33:00.080 --> 00:33:01.080 for their business. 909 00:33:01.080 --> 00:33:04.640 And so the people who upsold between product one and product two, 910 00:33:04.640 --> 00:33:05.800 many of them saw nothing, 911 00:33:05.800 --> 00:33:07.080 besides the fact that they found out 912 00:33:07.080 --> 00:33:09.600 that I had another book out and then bought it. 913 00:33:09.600 --> 00:33:11.360 And I don't say that in a self aggrandizing way. 914 00:33:11.360 --> 00:33:13.600 I say that because like I've lived the other way 915 00:33:13.600 --> 00:33:16.000 and it's much better to do it this way. 916 00:33:16.000 --> 00:33:17.360 I know it was a little bit violent in that one 917 00:33:17.360 --> 00:33:19.560 and it's because it was top of mind, 918 00:33:19.560 --> 00:33:23.440 but I really just want you all to make a lot of money 919 00:33:23.440 --> 00:33:25.360 and it's because I hate the government 920 00:33:25.360 --> 00:33:27.800 and I want private enterprise to be the thing 921 00:33:27.800 --> 00:33:28.640 that saves the world. 922 00:33:28.640 --> 00:33:30.760 And I think that's the only thing that will save the world 923 00:33:30.760 --> 00:33:35.200 is people rebelling by being better. 924 00:33:35.200 --> 00:33:39.240 And that's all I really care about. 925 00:33:39.240 --> 00:33:41.040 Long term I'll die, no one will care anyways. 926 00:33:41.040 --> 00:33:43.440 And so if that is the tiny impact, 927 00:33:43.440 --> 00:33:44.600 then I'm cool with that.