How to Get People to Buy the Bigger Package Themselves

0:00Okay. >> Take one last one. >> Okay. >> Samantha. >> Who's it You want You want Samantha? >> Yeah. >> All right, here we go. >> Samantha is the lucky winner. >> last up. >> Samantha better answer. Samantha better answer. >> Hello. >> Hi Samantha, it's Leila and Alex Hormozi. >> Hi, how are you? >> Good, how are you? Are you still watching the live or you just uh verbal?

0:26>> Yes, I am still watching the live. >> Amazing. So, how can we be of service? >> Yeah, so I guess uh well first off like we run a tutoring company, so we're Prep for Success Tutors and we run basically for LSAT tutoring. >> Nice. >> Our biggest problem is retention. So, in terms of retention of tutors as well as retention of clients >> Mhm.

0:50>> because we do a pay-as-you-go model and we totally understand that that is probably not the best thing, but it does help with the sale initially. >> Yeah. >> Um and then in terms of tutoring uh or sorry, our tutors having like a gig before law school is a lot of what a lot of our tutors do, but getting like full-time tutors is definitely challenging. So, that's [snorts] our two biggest problems.

1:17>> So, I I almost started a tutoring business um and so I really cuz I I like standardized testing, which is weird, but anyways. Um I Let's Let's separate the problems here. All right, so you've got the the tutor issue in terms of retention and then you've got the the client issue, right? >> Yes. >> Now, what you didn't say, but I saw in the in the in the text that I got, you're getting you're doing 7 million top line, 4 million bottom line, right?

1:41>> Yes, mhm. >> Girl, you're smoking it. >> We're We're uh we're the broke version of you and Leila, me and my wife. >> No, you guys are the rich version. You guys are awesome. You guys are killing it. >> What the heck? >> My husband's here with me. We basically are >> started the company together. >> Oh, that's good. >> We met in college. >> I I do like the HR and marketing side and he mainly does the sales side. So, he helps me out with that side and I kind of do a lot of the brings behind the scenes.

2:06>> Oh, so you haven't split it the way we do it. So, I have it so Layla does everything and I take the credit. That's the That's the split. >> It's so good. >> You'll get there, man. You'll get there. You just got to keep slowly giving things to her and not responding to people. >> at all. >> Yeah, so [laughter] >> I could keep going forever. >> salary that she gets to spend so she feels like we're broke and invest the rest. >> Well, great. Okay. So, I I just want to say you're doing you're doing seven top, four million bottom. Like, I don't think there might be anything necessarily wrong with the business.

2:34>> I think Yeah. >> This might be a feature not a bug. >> Yes. So, it's kind of a pick your problem which is like the current problem you have is the the one with the tutoring and the clients, but it's like, okay, in order to fix that problem, you change the business model which allows you to make this money. And there is literally no business in existence that doesn't have a downside. >> Yeah. >> Every business has the problem that you have to continuously tackle for years and years because it is the downside We call it like I like to say the downside of the upside. Like, what makes your business so good is also what creates this problem.

3:07>> Yeah. This is the heart. Yep. >> You have a really healthy business. There's We've looked at a lot of tutoring >> Oh, yeah. You guys are right. >> You guys are doing great. >> Awesome. Awesome. >> Is there anything that you would say that could tweak it to maybe even make it better though? >> Yeah. So, you So, I'll say this. I'll say this. You guys have You have really good margins right now, right? So, you could absolutely pay people pay a couple people to take a lot of stuff off your plate and probably not impact your margins that much. So, if you said I'm going to allocate $500,000 to bring some real talent in two two people at 250 who are a [ __ ] monsters like you guys your your your standard of living would go up so dramatically and I'll bet you'd still fill your time up to go grow the business and then you'd end up still making more absolute.

3:52>> I'm happy to pay that. Can you help me find those two people? >> You just got to do that dude like it's just you just got to you got to kiss a lot of frogs. >> Yeah, you got to kiss a lot of frogs. >> toads. Is it toads or frogs? >> toad? >> Is there any um way that you would suggest to hiring those is like indeed zip recruiter LinkedIn recruiting like is there >> Uh >> Um do you guys have social media presence?

4:18>> Uh we're we're starting with that. We haven't but within the last like probably 6 months or so we've been producing probably about two to three videos a day and just trying to get stuff out. >> That's great. >> That's great. >> Honestly >> Yeah, yeah. Amazing. >> It's really good. Okay, so first off I think um posting it on your social medias like you would be shocked. That's the first thing. The second thing is I always think when I have like a very specific role I'm looking for that's hard especially in any business. I like it sounds and it's not scalable but you do the unscalable which is like your network. Like who do I know that knows this person? Where does this person exist? And I think we still do that to this day which is like who do I know that knows a person with this skill?

5:05>> 100%. I'd like call them text them. >> The problem is is like our network is all broke people. Like we >> Yeah. I hear you. >> That's fair. That's fair. >> No, so you like you go in the places they're at. That's like joining the communities, join the forums, join the slack thread, join the discord groups, join the school communities. Go ahead. >> The the next piece that I I would suggest for you guys is doing basically make a list of 10 places 20 places where these people already work and then you reach out to them.

5:35yourself Because like and that's what a lot of people won't do but I will tell you it has there are people in this building right now that are because I did that. >> Oh. >> What are the What are these two people? What are their roles? What would you say? What are the name of the roles? Director of Director of Marketing Director of like what what do you think those two roles are? >> For this company. >> Do you mind mind if I take this one? >> Yeah. >> I'm going to give you a Layla answer. So, the first thing we would do is you'd do a time study on your calendars cuz right now the business is small. So, you guys are probably each wearing like three hats each.

6:06>> Yeah. >> So, when you do that Yeah, I'm sure. And so, what we basically have to do is like you guys are both junk drawers right now. You're doing a little bit of everything. You've done some delineation, but I'll bet you there's a ton of crossover and there's a ton of other stuff, right? And so, we have to look at all the things you're currently spending your time on and then think, "Okay, does any of these bucket together into a role that actually makes sense that we can attract someone who might have a relevant skill set?" >> Okay.

6:33>> That's how I think Layla would answer it. >> No, I mean, it's it's the truth. It's And listen, you're going to have to guess and in the beginning it's kind of like just >> And it'll change. >> to be okay with the fact that you there's going to be uncertainty. Like even we can't give you the certainty cuz I post jobs all the time and then I'm like, "Oh, I get feedback from the market when I'm talking to people and I'm like, oh, it's actually probably not a director, it's a manager." Or, "You know what? I actually think that that's a specialist and it's not a lead." Like you're going to have to adjust as you go. Um and even now like I take like I would take that time study, put it into AI and be like, "Tell me what job descriptions fit these responsibilities out of all the ones on LinkedIn, Zip Recruiter, like all the places."

7:10>> now write me Now write me a job description. Now write me a great opening line. >> title you think is appropriate? >> Exactly. >> Right. And I I'd love to get to about 20 million, you know, top line. >> You can do it. >> You know, 11 to 12 bottom line. Um it's about, you know, a two and a half X, let's call it. Um I think if I just take right now our average client does about 20 hours of tutoring with us. You know, our prep program is normally around 50 to do to feel fully prepared for the LSAT. >> Yeah.

7:36>> Um I know we can take it from 2 to 50, but I just I mean, from 20 to 50 hours. Um but I guess how do I better focus on that client retention and having them stick around to do a 450 hour program? So, I have >> I'll actually I'm going to bet you right now that this is a this is actually a money model thing. Is how can we reposition the offer such that we can get a way higher percentage of people to choose on their own to just buy the 50. And then are there financing partners that we can set up as well uh, to make this a little bit easier for some people?

8:06Those would be that like that's like my first my first inclination. >> give people the pay as you go option, they just kind of do 20 hours and not not not as many build up to the 50 which >> Right. And so then the question is like how can I incentivize someone to not want to do that? And so you have pay as you go. Pay as you go can be one of two options. So, it's like listen, everybody feels prepared at 50 or like 80, you know, collect the stats. 89% of people feel prepared at 50 hours. Okay. So, this is what we want most people to do.

8:33We also understand that it's not necessarily, you know, some people are poor cuz you guys are students or whatever it is. And so it's like we have this financing partner. Also, because it's education and because it's an established field for like legal, there probably are pretty decent lending partners for things that are related to that. That would be my bet. >> Mhm. >> And so I would say we do this and then in the instance that that does not work, then we have the pay as you go model as a down sell. >> Mhm. >> Yeah. And I think that Yeah, go ahead.

9:01>> I was going to say like my other question was why didn't you start the test prep business? I know you're close to it. You did well on the GMAT. >> Yeah. >> You're good at test taking like myself. You know, I got a perfect score on the SAT math. My parents had me doing like math competitions since I was a young kid. >> Yeah. >> So, I kind of can connect on that. But I guess why didn't you jump into that space? >> Uh, because I was emotional. So, I did this whole curriculum. I put all this stuff together and I was supposed to partner with one of my college professors and I gave him all the stuff and then he ended up just like going and doing it because I didn't understand how like business worked. And you know what? It might have been not a big deal or whatever, but to me at the time I felt so um what do you call it?

9:41>> Betrayed. >> Yeah, betrayed is a little strong, but yeah, I snuffed um that I just I I was like, "Nope, I'll do something else." And so then I just decided not to do it. Is that a logical decision-making process? Absolutely not. I just I just chose not to do it after that. >> well for you. >> Yeah, it worked out okay. It worked out okay. So >> I mean you're you're doing fine now. >> Thank you. I appreciate it. So >> like about the business is if we do a good job, people don't need us anymore. >> That's okay. It's every business Let me get Yeah, let me give you the other side of it. Every year there's more.

10:11>> Yeah. That's true. >> Right. They make new ones every year. >> Yeah. >> Okay. So, I appreciate you guys. Rock and roll. Donate some books. Feed some entrepreneurs. Thank you guys. I appreciate it. Seriously, thank you. And thank you on behalf of the 200 entrepreneurs that you give books to. >> Thank you. >> All right. Bye. Toodaloo. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're a business owner, I appreciate you and enjoy.