WEBVTT

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But everybody happy Monday, I hope you guys are having a very productive caffeine filled,

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nicotine filled start to your week, and if you want to have your nicotine that's cool too,

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so I just hope you have an energized start to your week. So, my sales manager, Dylan, was like,

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oh, that's strange to me, it sells directly to Delano. It's like, hey bro, do you think you could

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make a sweet video about how to break through EFT platelets? And so, I thought I would use a

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nice sexy title, like how to stack EFTs for real, and the three ways to grow it. So,

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I'm basically going to break down all the math behind this, so hopefully you don't get bored of this,

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but where you can start if you're trying to look at how to break through EFT platelets is just

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understanding how the EFT works in the gym, right? And most people don't know this, like we even

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own a gym and have a recovery month. So, first I'm going to show you the equation and then I'll

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show you three ways to grow it. Cool, awesome. So, for those of you who are in my world,

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I call this the pie equation, and the reason I call this the pie equation is because I figured it

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out when I was cutting, and I really liked pies, and it sort of looked like a pie. But anyways,

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the way that it works is this, right? The top of the equation you can split into two pieces,

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all right? You've got referrals, people who come in and sign up because their friends told

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them about it, and the other side you've got cold traffic, okay? People who come in off of

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promotions, etc., right? And these are only going to be the people who sign up for EFT for recurring,

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not people who sign up for your front end offer, challenges, liberary entry offers, whatever,

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just people who sign up for EFTs, all right? And then on the bottom here, you're going to have

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your attrition percentage, okay? And for those of you who don't know what that is, it's just the

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percentage of people who leave each month. So, if you had 100 people who were on your EFT last month,

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and not including new sign ups of those 190 of them were left at the beginning of the next month,

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then your attrition would be 10%. New sign ups do not factor into your attrition percentage, all right? So,

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you know, first billing in July, you have 100 people, those same 100 people are colored red, and then

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in August, the next month of those red colored people, 90 of them are there, it's 10% attrition.

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Doesn't matter if you send up 100 more people, you still have a 10% attrition, okay? Now,

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let's dive into how this works, math wise. Let's say you get two referrals, okay? This month,

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a little bit low, but let's just say you get two referrals. Let's see you get 8 EFTs from cold traffic,

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okay? And let's say that your attrition rate is 10%, which is the industry average.

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All right, so 10% is the industry average for people who have microgames owner operated facilities.

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And if you look at these numbers, these are all pretty average numbers for the industry.

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Now, if you do the math here, I'll simplify this. This actually becomes an addition sign. So,

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as tuples say, so you've got 10 sign ups over a 10% attrition, right? What that means is

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your gym will cap out at 100 EFTs, okay? So, you can predict with a fair amount of certainty

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what your EFT is going to be if you have, if you change nothing. And so, one of the things that

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my team gets on me about is that they like joke that I can see the future. They're like, he said

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that six months from now, we would have 500 people in legacy. I'm like, yeah, it's math. You know what I mean?

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Like, there's no magic around it. And the next thing is that when you look at it as cold-heart math,

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you can take your emotions out of it and just look at your business. Emotionlessly. And then you

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can make decisions about it that makes sense and actually make you month, okay? So, this is the

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equation. This is how you calculate your hypothetical max for your EFT. And if you know that you

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change nothing in terms of your sign ups, right? This won't change. Now, let's grow it. Cool. So,

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let's take the same concepts, okay? Now, and let's say the first way you can grow.

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And then we'll see where it caps out. So, let's say you join some badass program, right? Let's

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call it a schmimsch launch, okay? And in this program, you sign up 40 people, 10 people a week

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on a front-end defining program. And then you keep 75% on the back end, which is what the average

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people that we have do, right? And so, you have, well, you came in on the front, right? And then

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that means you have 30 people, oops, that's ugly. We ended up staying on EFTs, okay? Now, you have

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30 on the top side, but let's say that you haven't improved your fulfillment at all, okay? And your

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nutrition is still 10%. That means that you're looking at 30 over 10%, which means your new hypothetical

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max is 300 EFTs, okay? That's it. Now, what happens, though, is if you look at this on a graph

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and you look at it month to month, what would happen is, let's say you're at 100 EFTs today, okay?

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You're at 100 EFTs today. That means that month one, you'll be at 130, right? But minus the 10%

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from last month, right? So, you get 130 minus 10 because you're taking your 10% of your original

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month before, okay? So, you had plus 30 on the top, but minus 10% times last month, which was

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100, okay? So, that means that you now have 120 EFTs, okay? That's month one. So, you grew by

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20 even though you added 30 because you lost 10. Month two, 120 is our last month number, right?

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Which means that we're going to lose 12 when we do this equation again, but we add 30. So,

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we add 30, lose 12, and now we net 18. So, you can see the growth went from 20 month one to 18

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month two. Now, month three, what are we going to have? So, we're going to have 18 on top of 120,

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so 138, right? And then if you have 138 people that are in there, you're losing your 10%,

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which means 14, right? So, you have 14 people who are going to get lost this time, you add 30,

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lose 14. Now, you only net at 16 as your growth, right? And so, what happens is your growth rate,

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if you look at it on a graph, it's an asymptote, if you really want to get nasty, it looks like this.

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For those of you on the podcast, I'm showing something that's a direct line that goes up and

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then smooths out as it approaches a hypothetical mix. Okay? So, 300 ESTs would be here,

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right? Which is your hypothetical mix, and you're going to grow like this. And then it slows down,

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and then hypothetically never approaches. So, what happens is here, and you're going to see the

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majority of your growth in terms of crazy growth right here, which will probably be in your first six

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months or so, right? And then you're going to be at 250, and then it's just going to start edging,

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right? It's going to get, you know, then you're adding five, adding four, adding three, adding two,

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you know what I mean? It gets really slow at the end, because the attrition percentage takes

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bigger and bigger chunks each month, because when you have 250 ESTs last month, right? You're

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10% means you're losing 25. So, you fill in 30, you lose 25, you net five, now you have 255,

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now you lose 25 or 26 this month, you know what I mean? And the net four. And so, and the

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trend slows down, right? So, the second way to grow your EFTS, I showed you the first one,

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should sign up more people, right? The second way to grow your EFT, let's take the same numbers.

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Now, in the original example, we said we had 10 signers, two referrals, and eight cold traffic,

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so we said 10 signers. Now, the industry average attrition is 10%, right? So, if you have 10%,

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let's say you cut that from 10%, right? Because your staff, you decided to start reaching out to

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your customers on a bi-weekly basis, you set it right hand or in cards once a month, and you decided

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to track your attendance and call anyone who hasn't showed up by day three of the week.

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Hey guys, love that you're listening to the podcast. If you ever want to have the video version

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of this, which usually has more effects, more visuals, more graphs, you know, drawn out stuff,

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sometimes it can help hit the brain centers in different ways. You can check my YouTube channel,

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it's absolutely free. You'll check that out if that's what you are into, and if not, keep enjoying the show.

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That'd be a good idea. Anyways, I'm just sent. Don't mind me, right? But if you just did those two

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things, you would measurably cut your attrition from 10% to 5%, hmm, might be worth it. Now,

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let's see how worth it it is, right? So, if you have 10 or 10 people that you're signing up that

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hasn't changed, but then you cut your attrition in half, your hypothetical gym max is 200 EFTs.

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So, we went from a hypothetical max of a gym with 100 to a hypothetical max with 200. We doubled the

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gym by cutting this percentage by 5%. It sounds like, hey, all I have to do is decrease by 5%.

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It's cutting in half, and that's why the math is so strong, right? You go from 10% to 3%,

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it's going to be more than tripling. It's going to be 333 EFTs, which would be a hypothetical max,

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right? And this is why this number gets really funky the lower you go. Okay? So, let me show you,

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let me show you some fun stuff for our math, right? This might be interesting for me, okay?

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So, legacy is our top end program, right? Right now, we sign up on average about 45 people a month

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in the likes. Okay? I'm just telling you the numbers. That's what it is. Okay? And right now,

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we have a 1% chart, okay? So, if we do the math here, then our hypothetical max, right,

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is 45 divided by 0.1. We know that that number is 4500 gyms in legacy, because the growth rate,

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because we don't lose people. And that's what's key. If we had a 10% attrition, okay? Let's just

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show the math here, right? 10% attrition, we're still signing up 45 people a month, right?

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Just to demonstrate this, right? It means we only have a 450 person max in legacy. Right now,

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we already have 500. So, like, that's just like 450 EFTs versus 4,500 EFTs by changing the bottom

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number, going from 10% to 1%. It's big. It's important, okay? So, I told you that I would show you

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three ways to grow your EFT, right? To stack it. So, hopefully, you're tracking with me. The first

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thing is understanding the equation, right? What contributes to the top? What contributes to the bottom?

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And for those of you who always get confused with this, because I always get questions about like,

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how do I calculate your tuition again? I'm going to write this one more time, but I'll say it out

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loud as I do it. It's your multiplying, let's say you had, this is July, okay? Or let's just say

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last month, okay? Last month, you had 100 EFTs. This month, okay? This month, of those 100, you had

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90. That means you lost 10%. That's it. Where people get messed up is they say, well, I also signed

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up 12 people, okay? Because now I have 102 people in my EFT. So, I don't have any intration. I

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grew. It doesn't work that way, right? So, you have to separate the fact you're signed up

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in no way affect your attrition, okay? It's how many people from last month that you built

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were you able to build again this month? That's how you do it, okay? So, I just want to clarify

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that one more time, because I get questions about it all the time, and it doesn't need to be

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up here, okay? So, the third way to grow the EFT is to do a combination of both. And this is

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really what we do in gym lunch, and this is how guys like Joey Hubert right now are adding 100 EFTs

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a month. I know that sounds crazy to some people who are on here or not in our world yet, but like

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Joey has 600 EFTs, and right now at his growth rate, he will be at a thousand within six months.

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Pretty neat, right? He is less than two and a half percent turned at 600 EFTs, okay? Talk about

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scaling delivery. You need to have systems in process in place. Are you reaching out to everyone

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on a regular basis? Are they getting in ready cards? Are you holding it up and everyone? Like,

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these are things that everyone's like, oh, those are all neat. That's how you measurably reduce

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churn. That's that bottom number that massively multiplies how much you're getting, right? Okay,

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so let's give maybe two realistic numbers, because you're like, I don't know how we can go from 10%

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to 3%, and that sounds crazy. Okay, that's fine. But let's just say you go from 10 to 5,

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and let's just say you go from signing up 10 people on EFTs a month to 20, okay? That's it.

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So we went from 10 signups at 10% nutrition, right? Two, with Schmimschmunch, right? You know,

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he must not be named, right? You go to 20 EFTs a month that you sign up, and you cut your

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nutrition in half, okay? You're like, listen, hand-rated cards sound hard, sound time consuming.

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They're not a favorite system around. I feel anyways. But you're like, you know what,

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I'm going to clap people who don't show up by what's that. I'm going to start doing that. I think

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that's a good idea. And you're like, you know what, I'm going to, I'm going to reach out to every

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customer that I have at least twice a month, just be a texture messenger. Just that, just a pulse check

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to make sure they're alive in their lives. That's all I'm going to do. And so what that does

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is it cuts your nutrition from 10% to 5%. And then he said, you know what, I'm going to start using

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client-financed acquisition and start spending money, right? I'm sorry, making money in the

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acquisition. So now I'm not limited by a marketing budget. So I used to have to spend a lot of money,

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lose money, and then try and recoup it in conversions. But now, my bottleneck is really just my

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sales staff, right? And so now I have 20 people for a month that are signing up for EFT. Meet,

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but look how the equation changed by going from 10%, sorry, 10% to 5% and then 10 to 20 on the top.

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This is what happens to your hypothetical EFT. This guy's type of integral EFT is 100. That's the

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industry average. That's what most people come to us with is a Brown 100 EFT's give or take, okay?

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Now, this new hypothetical max is 400 EFT's. Meet, right? Can you play with math? So

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these should feel realistic to most people. These numbers are not crazy. Five people a week

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while signing up on the EFT is not crazy. Like, this is really, really super achievable for everyone.

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Like, everyone can do this, right? Going from 10% to 5%, everyone can do that. Going step three

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is more challenging. You got to be really, really deliberate about it. You got to be consistent.

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You have to have the systems in place. You got to get a good staff. You got to smile,

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training has to be on point. All those things. Going from 10% to 5% is really just giving a

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who, right? And actually just trying to make sure that you talk to everybody. Make sure that you

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foster relationships, okay? Just by doing that, you forexed your gym. You didn't double it.

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You quadrupled it. Hopefully that makes sense. So, anyways, drop this up. Dylan, your wish is my

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command. I work for you now. So, Dylan's our self-driving. But anyways, I hope this math gave you

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a little bit more sense in terms of how to calculate your nutrition. It's last month. How many people

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from last month I was able to build this month? That is what the nutrition number is. That's where most

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people get jacked up. Seeing the power of lifetime value in how, like, going down by 5% doesn't

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doesn't just mean you make 5% more. It means you double your gym, right? Double. And then seeing

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the power of what, like, climate-funded acquisition can do to your gym. And when you use both these

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things together, decreasing your chair, increasing your signups, how dramatically it can increase

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the revenue that you're bringing it. Cool. So, I hope that makes sense for you guys. Some of my

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last few videos have been more attention-based, more, you know, how to live as a gym owner,

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more theoretical. This is hardcore math tactics. This is how you grow your gym. This is how you stack

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your NFT. So, anyways, have an amazing Monday, everybody. Hope you are crushing your goals,

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living the dream. And I will see you on the other shot. Right. And, like, you know, like,

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comment chair, tag somebody who needs to know how to do the math. Right. Right.