If I Had 1 Hour to Make Any Offer Irresistible, I'd Do This

0:00Hi, Alex. >> Yes, ma'am. >> My name is Julia. >> Hello, Julia. >> And I'm an online fitness coach for women over 50. >> Cool. >> Because I do my job so well. Yeah. >> Okay. >> Yeah. There's a >> I would have thought over 30, but okay, that's fine. >> Anyway, because women have so much success in my program after 12 months, 18 months, they're gone. >> I don't know what to offer them after that. But I also have a huge opportunity to tap a high- netw worth individual community where instead of paying $1,000 a month for six months or 12 months, 24K to 100k a year.

0:38>> I and one of the reasons I came this weekend was to figure out what direction I should go and I got a whole lot of other valuable content that I wasn't expecting. So, thank you. >> But where should I focus my energy? because really when my clients reach their goal, they're gone. >> I wouldn't worry about the revenue retention piece for your business. So, um, so this is a really good exercise for anybody is like I I try and think of like what are the what are the biggest people in the space do? Like what are what are those what do those businesses look like? And so like Weight Watchers, Jenny, I'm not I'm not saying you're the same thing, but just like in the space of weight loss, which is the space you're in, um, almost none of them have revenue retention. And so like Tinder for example, I I don't know if it was them, but one of them was like the point of this app is to get deleted, right? And so not all businesses have to have re revenue retention, but this is where because people get single again and then they come back or they get fat again and come back, right? So there's there's the it becomes more reoccurring than recurring um in terms of revenue.

1:42But I think all of this comes down to um or bubbles up to what your goal is. >> To have an impact and make lots of money. >> Well, you already have the impact when you're already making lots of money, so it has to be different than that. >> No, it's not enough. But anyway, >> me neither. >> Yeah. [laughter] >> I I guess my goal is to reach as many people as I can with >> Well, then make it free. >> Say again. >> Then just make it all free. >> I can't. No. >> Okay. So then what's the goal?

2:08>> To make [clears throat] money. >> Okay, fine. So, do you want to make money by selling it or do you want to make money by growing the revenue of the business? >> Growing the revenue, but okay. In a model that that I love doing. >> Well, I was pushing back on the impact whatever thing because I also talk to business owners all day. I'm like, I hear that [ __ ] all the time. The because if that were true, then you wouldn't be like, "Okay, I want to sell even fewer people at a higher price, right? That would I don't care to be clear. Make money. I'm all for it. I just I want the if we can't clearly state our goal, we certainly won't hit it.

2:40Right? You're not going to hit it by accident for sure. So if you just said, "Hey, Alex, I want to triple the profit of this business." I'd be like, "Cool. Well, now we can actually like pull this apart and actually and and take this." Now, you might have your own things around that, but like it's just much easier for me. So, what's revenue right now? What's bottom line? >> Um, the topline revenue in the last two years is like 700K. >> Okay. >> What's bottom? You know, when we did all that stuff, I was like,

3:08>> you're good. Can I just say it's not super >> my numbers. I'll just admit it right now. >> You're good. That's fine. So, you have something that's working, right? So, people are work and they're paying you $1,000 a month. Okay. So, the issue that you have, I'm guessing, is marketing. >> Market. >> Yeah. No, advertising. You're not like not enough people know you exist. >> Yeah. That's definitely a constraint, >> right? So, I certainly would not advise you to do anything new right now. I think you need to sell more.

3:38>> Can you handle more customers? >> Uh, yeah. >> Okay. Then I would I would be trying to sell more >> and sell more at what's making money now or to focus also. >> Do you have decent margins on what what you sell now? >> No, absolutely. I have zero ad spend. I don't have any employee. I do have consultants that I pay, but >> yeah. So you actually have the classic small influencer issue which is anybody who's organic typically wants to create many products because they only have one base of customers and so the only way they can think to make more money is to sell them something else. But it's you should really just see your organic audience as the jump start to then continuing to sell to colder and colder traffic because otherwise you start five businesses and every single person here has probably seen the influence that has five different revenue streams. They all add up to in total a million dollars a year, but they're like, "You know what I should do? Add a sixth." And so this will be different, right? So it's just that you only know one way to advertise.

4:33And so you're looking at all these things that I need to change about my business, but you just need to advertise more. >> Okay, good. >> Yeah, that's honest. Like I wouldn't add any complexity to the business that you already have. Now, if you want to add an anchor product that's 100 grand, I'm all for adding super high anchors. Why not? But it's really like So, when you add an anchor, by the way, the way this worked is you have or I'll tell you I'll tell you a story that'll make it make it simpler. So, I learned this technique when I went to a suit shop and I was poor and I was told that I needed a nice suit. And so, I went there and I said, I'm going to pay $500.

5:12That's my max for getting a suit. And I go in and a friend of mine set up the connection. So, he's like, "This guy's awesome." Blah blah blah blah. So, I get there and he l, you know, he does my measurements and he lines up this big rack of suits. And so, he puts the first one on and I was like, man, feel like a boss. Uh, and he's like, "So, you like that one?" I was like, "Yeah." And so, I pull, you know, I look at the tag and it says $16,000. And I was like, "Oh, sh." I like my the blood just drained from my face and I was like, "This is a car."

5:37[laughter] And so, I was like, "Uh." And he saw that I like [ __ ] my pants in his nice new pants that I was wearing. [laughter] and and uh and and so and so he said he said do you care about the the brand and I was like no don't care about the brand and he was like I got you sport like took he like took one off and put another one on me in like one move and at this point I didn't even look in the mirror I just like looked at the tags I was like and it was two grand and I was like okay I can I can swing this at least I'm not going to you know cuz my friend made the intro I didn't want to you know be an idiot um which now I would give zero [ __ ] about but anyways uh and so I ended up spending like $500 $ on like socks and handkerchiefs at this place. And I walked out spending $2,500. And only after I walked out did I realize that I spent five times what my budgeted amount was. And this guy was a fourth generation tailor. He knew exactly what he was doing. [laughter]

6:30>> Because he had the the one that was 1/8 the price already there. >> Yeah. >> And so when you have an anchor upsell, the way you want to do it is there are something called primary and secondary features. And so the primary feature of the suit for me is to look cool. The secondary features of the suit would be what's the material, what's the brand, like all of those things. And so what you do is you have your anchor at 25,000, 50,000, whatever you want. And then you get the gasp and people [ __ ] themselves. And one out of 10 people are like, "Awesome. That sounds great." And you're like, "Holy [ __ ] this guy just spent 50 grand on this." And he probably would have been like, "Holy [ __ ] this guy, this kid just spent 16 grand." I was like 24. Of course, I didn't have 16 grand, right? But he still put it on me.

7:09And so the secondary features are the things that are not material to most people. So that what you can do is basically deliver 90% of the same product for onetenth the price. And then people are like this is like I'm pulling one on this guy. He doesn't know he sold me a suit that's almost the same as his $100,000 suit. And you're like this guy is about to buy a $5,000 suit that's really a $500 suit because I showed him a $100,000 one first. And so you just change the things that aren't material to most people and you want to come to the rescue. It's like, "Hey, do you care if you have my cell phone or are you good just with Slack?" It's like, "Oh, Slack's fine." Yeah. It's like, "Okay, cool. Well, then we can still pretty much get you there. Vacation, plane, flight, just a slightly different." So, I think if you if you add the Anchor upsell in and then all of the cash that you get from the few people who take that, pour it all into advertising.

7:54>> Perfect. Thank you so much. >> You bet. Hey, man. So, we are an early stage sports tech startup. Uh, so pretty much >> what sports tech? >> Sports tech. Yeah. We help sports entities like clubs, leagues, sports books accelerate AI development. Okay, >> instead of them having internally, they use our AI to accelerate this this type of use cases. So by its own nature, it's really flexible. It's API. So they can build on top of our tech. Uh and I'm having a hard time to define the product, one product and one avatar and even like selling the vacation, you know, how can we frame this

8:31>> to be able to yeah, find a lot of a lot of leads. Okay. So, what type of organizations are buying it? >> Uh, right now we have good leads and uh closed with some sports clubs. So, that's the first entry that we got some uh success. >> But, >> what do you deliver to them? >> Sorry. >> What do you deliver to them? Like what's the benefit? >> Oh, so instead of them having in-house AI developers >> that part, but what is what is what do they they would have in house development to do what? Uh so for example if they want to create uh let's say always fresh sports data for with AI they need to hire and build

9:07>> they want data >> uh yeah but then at the end of the day they deliver to their fan for example these use cases for clubs is fan engagement so uh >> well that makes sense sport clubs make money off fans >> yeah so it's like a chat GPT for for the the football match you know during the match you can ask what's going on and it's live statistics for the fans that's one of the use cases But because we are flexible SDK like a lot of different APIs a lot of stuff can be built there.

9:34So >> we can just go all in with this use case that we see works but uh I just wonder if there's any >> Yeah, I heard. No, I think it's it's a so just so you know like what you what you're going through is the very normal stage which is like you just sell anyone that gives you money. Not saying it's bad. That's what you do in the beginning cuz you're like got to see what happens, right? And then over time you're like, okay, of all the seven projects or whatever that you did, which one was like this clearly was the one that they were the happiest and provided the most ROI and are there a lot of other people like them that have a big uh budget? And so if the fan use case one is like, hey, we we we developed this thing. It generates this much more uh revenue directly or indirectly for the clubs, then you have a really strong kind of value proposition that you're going in rather than kind of coming in and being like, hey, we can do whatever you want.

10:21Uh it's way easier to be like, hey, you're here, you want this, we can bridge this gap, and that's what we specialize in. And I think that that that will turn this into a business because otherwise you're not going to you're you're not going to win by doing everything. You're just not. And so it's like you just have to pick. Even though you could do all of them, you can't do all of them. So you just got to pick one. So you pick the one that you think you're going to get the that's the biggest bet that most people would buy from you. So if you looked at your other six uh projects they did with sports clubs, they might have bought something different. But the question I would ask myself is could they have bought this thing my favorite thing if I had just sold that to them and they might have and if they had then I should have just sold that beginning because then I would have been more efficient on it. I would have like I would have converted a higher percentage of leads etc etc.

11:06>> I can tell you that and then I teach crafters and mostly women 45 plus. >> You teach crafters for themselves. Crafters make stickers. >> Stickers. >> Okay. Love it. I love this. This is great. [laughter] Okay. They're making stickers for themselves or for their family or to sell. >> Okay. >> So, my business has made it over seven figures last year. All low tickets.

11:31Thank you. >> Okay. So, you made a million plus. Okay. >> Yeah. >> Amazing. >> Between $7 and 270. >> Okay. >> And the main continuity I have is the is a membership. It's my main $27 a month or 270 per year membership. >> Okay. I really want to be at 3 million USD per year, but my constraint I think is 30-day cash.

11:56>> So, on the main membership funnel that I have for ads, I collect about $60 in the first 30 days per new member. >> Okay. >> But when I base the numbers on my past recent launches, it's probably costing me about $90 to acquire them with meta ads. So, I just feel like I can't scale profitably. >> What's on basis? What's churn? What's LTV?

12:20>> So churn is 93% and LTV bounces a little bit depending on launches, but it's around $300. >> Hold on. So $27 divided by 7%. Right. Okay. So 385 is So 385 is true LTV. Okay, that's fine. Um and you're So big picture, just so we're clear, you're spending 90 and you're making 3.85. 85, right?

12:48>> Well, 385 is across the entire like my all of my members. So, I haven't worked out the LTV specifically for the ads funnel. >> Okay. Um, are you on school? >> This membership is not on school, but I do have a smaller membership that is on school. >> Okay. Because on school you could it does by cohort. So, you can actually see cohorts by month. So, you can see when you have your launch months and you could follow that cohort to see its turn.

13:15Yeah, I need to start tracking this. I can do it for myself. I just haven't. >> Yeah, it's a pay. I mean, we spend a zillion to to do that on school. Anyways, not a school ad. Um, okay. So, you're at you're at $60 is what you're collecting in cash. It's costing you 90. You're not sure on LTV, but you feel comfortable saying $300. >> Yeah, >> that's unfair. Okay, got it. Um, and the problem is that it takes you two months to break even rather than one.

13:44the way that I've worked it out and I may not have all of my numbers here, but that it takes longer than two months. >> Okay. So, >> yeah. Yeah, I trust you. I trust you. >> It feels like because I I'm all good with with, you know, paying in advance and taking a hit on ads to get like a recoup for cash, but it feels to me from what I've worked out that it's probably more like six months. >> Okay, got it. So, when you're making the offer and and when you're running the ads funnel, is it running to a webinar or running to a five-day event? What is it running to?

14:10>> Yeah, five day. Well, three, four, five day event. I'm lipop right now. >> No, you're good. >> So, it's paid. It's a paid event. Yeah. >> Okay. What's the uh what's the offer that you sell at the event >> price point? >> The paid event is $10 and then the offer is the 27 a month or 270 a year. And then I've kind of switched in and out different kinds of upsells to try and increase the car value.

14:37>> Okay. And so, what percentage are taking the prepayment versus the 27? about 10% take annual. >> Yeah, it's because you're I mean if you somebody if somebody has the offer between the two and you're giving them 16% off, it's not a What bonuses do you add to the 270 or is it literally the same offer with a discount? >> So, previously, yeah, I've done joining bonuses every day of the event, but I I haven't restricted it to annual members only and I feel that I'm missing a trick there and I'm consider because I'm in the middle of a launch right now. I could implement an annual members bonus right now even for existing members to upgrade. So otherwise, apart from the two months free, they get nothing else extra.

15:14>> I honestly think you you could you can very easily solve this with two steps. All right. So here they are. >> Number one is that when you're doing a fiveday selling event, you need to sell the expensive thing. >> Yeah. >> So your fear is I'm going to I want to sell this recurring thing because I don't want to lose anybody. But the reality is that if you have five days with people, you could to a consumer audience is what you're selling to. 300 to 600 is the impulse purchase window

15:39>> for a consumer. >> 300 is the low end. 600 is the high end. That's your range. You could probably go up a little bit and you'd still probably you'll make more money at five or 600. I'm just telling you right now. >> Um if you wanted to go crazy. I'm just telling you you would. But you need to sell the annual upfront. All right. That's number one. And what I want you to do is come up with one to two big bonuses that are going to be annual exclusive. Okay.

16:04>> Yeah. Now, after the event is over, what you're going to do is you're going to do a scoop up campaign. So, it's five days and you're going to retarget everybody who saw the ads directly to your $27 purchase page. That's 27 per month. And you're just going to remove the bonuses. >> Yeah, >> that's it. >> That'll fix your cash. >> I like that plan.

16:30>> You want to You can do it. >> Yeah. I like that plan. It's something that I haven't focused on enough before. Um I have tried increasing the price a few times to a bit higher, not even in the 300 to 600 [laughter] range. >> Yeah. >> Um but I feel because I haven't offered a big enough bonus package that's definitely it hasn't helped. So I can absolutely do this. >> I love this for you. Now let me give you a little a little something else. There's probably some sort of what I'll call physical product premium that you can add to this. So are there any is there like a kit? You can't do it for this one, but for next one. Is there any kind of like physical thing that you can give them like the the paper, the printer, the you know that kind of stuff.

17:11>> There are so many things physically that I could put together. There are so many things. I have no clue about doing this. Maybe Vantage is a good place for me to ask because it's something that I know has worked well otherwise in the creative space for friends. So, I'm sure that's something I could do. I just wouldn't know where to go. >> Yeah. So, I would say this. If if I were you, what I would end up doing is I would sell them the printer with the paper. You can't do it by this time because you're like two days away from pitching. So, do what I said first. You know, add the annual with the bonus. But you will dramatically increase your conversions if you add a physical product that makes the makes this pitch tangible. Because the thing is is people need people. Have you heard like people need a reason but have an excuse? All right. The idea is that like these ladies, I'm assuming they're ladies 45 plus want to they want to buy it, right?

17:57They have a reason, but they need an excuse. The excuse that legitimizes the purchase they can go to their husband um or their spouse, whatever, is they say, "Hey, but I got this thing which I'm going to use to generate money or like they get something, not just like a login." So the a consumer's willingness to purchase goes up dramatically if it's physical. And so I think you'd actually be able to push a $1,000 price point if you included the physical thing.

18:22>> Yeah. Oh, my head is swirling now with so many different physical things. Yeah. Even if it's only a one thing to test first, like yeah, I've never even considered doing that. >> So, step one, step two, because I don't want to overwhelm. Step one, add the annual. Make that the only offer available. I want to be clear, the only offer available is the annual with the bonuses. You cart close. After the cart closes, then you do a mop-up campaign.

18:47That's the $27 a month thing, but it doesn't have these two key bonuses. >> Okay? So, annual only at the next launch. Yes. And then after the launch completes, then I offer me uh monthly as well, but with none of the bonuses. >> So basically, you do two car closes. Car close one and then you do car close two. >> Yeah. Yeah. >> Okay. >> Yeah. >> And you can like let's say there's three bonuses, you remove two, you keep one at the 27. So that allows you to car close the second one. And then you have your normal everyday activities that don't include those three bonuses.

19:17>> Yeah. >> Cool. >> Okay. And if people ask for monthly, because they would, do I do I just say no? Well, I would just say like um I I would say like we have options for monthly, but you're not going to get these bonuses that I just spent all this time talking about and they're going to be like, >> I like that. That's fun. Yeah. I really want to be open and honest. Yeah. >> No, of course. No, do not lie. But you can make it less convenient to purchase the thing you don't want them to purchase. >> I hate free throws.

19:41>> Uh but I mean, we've been actually doing it for the past seven days. We've been getting 40 customers a day. Um, we don't know what the number is going to be, but I hate to see my MR going down instead of going up. Uh, but um, what do you guys think about free trials? Should I continue or >> Well, I like them when they work. [clears throat] >> When I don't when they don't. [laughter] >> Okay.

20:07>> And it seems like you just need to wait seven more days and you'll have an answer. >> Okay. >> So, just remember that when there's free trials, there are two conversion points instead of one. And so you'll have an increase in conversion on the on the landing page. And then there's another conversion that it's going to decrease by because you have the conversion into paid, right? And then the third vector, not to get this too complicated, is that people post free trial, I'm pretty sure we have the data on this, like post free trial, the churn is lower because they kind of already tried it out. Whereas when you make the first purchase and then you get in, the churn will be higher in that first month for non non free trial versus free trial. So, you basically just have to put an Excel sheet together that says like number of people like it goes back to earnings per click. Like I was saying, if I get a 100 clicks to this page, this percentage of people take a trial. This percentage of people turn into paying customers and the LTV of that customer with the newer churn is X. In the other example, you already have data on this. We had 100 clicks. We get this many people who convert and the churn on that is this.

21:03And then just reverse it to which of these numbers at the top is higher. So, it's just math and you probably need to wait seven days. >> All right. All right. Um, so should I stay for like the entire month to wait, you know, to get at least the data for my one month? >> Well, if you back out now, you'll never know, right? >> That's right. >> And then you'll probably wonder [laughter] >> because you can always go back, right? Like this thing is like you can always go back. If you find out, then you're like, great. And you never need to think about it again. So if you had a 4x increase in conversions, we just need to make sure that like let's say your conversion on the back is 50%, then you still doubled your sales and those customers are probably going to stick longer.

21:39>> Yeah. But I mean, I hate when I see them that they join the free trials and they they cancel right away, some of them I I kick them out manually. Like, >> we just have to do the math. If half of them cancel, you still doubled. If twothirds of them cancel, you're still up by 50%. If threequarters of them cancel, you're net even. Now, the only caveat, not to add more complexity to this, is part of the reason you probably got more people to to convert is that when you say, "Hey, you can start my group for free versus, "Hey, go buy my group." You will get more people to click over. So, again, I'm not trying to like earnings per click is there, but there's also the other side of it, which is what's the cost per click. Now, you're organic and you you're probably not thinking about cost, but functionally it's like if you make a piece of content and you get three times as many clicks from that because your CTA is free, then that also factors into it. And I wish I could give you like just do free trials, but it

22:32>> Yeah, when we're at school HQ, talk to me and I'll pull up your stats on my computer. I want to have a look >> cuz especially how you're crushing it in Latin America. Yeah, I I started um school beginning of the year and then we have a rough months and everything and then we decide I was doing only YouTube and then I did my team decided to do Instagram as well and then in four months we went from 20 something to 100,000 in school and I mean community likes school a lot like even my wife asked me what is a school and I say it's just like Facebook for people want my my money but it's looked like Facebook but I mean like It's like my customer my clients are erasing the app from Facebook and using the school like it's it's a lot better.

23:16>> Well, congrats on going from 20 to 100,000. >> Thanks. And I have uh how would you advertise screws and fasteners? It's commodity product. Can't even see it once it's installed. Lots of good high quality product. Difficult to stand out. Really, really good question, man. So, um there are two kind of strategies that you can employ to decommoditize a commoditized product. Um, one is we have to think about all the other facets of the product. So, if you think about a car, a car gets you from point A to point B, but there's still tons of differentiation within cars. Now, there's luxury vehicles, their status.

23:50I'm not to say it's the same thing with fasteners because people don't see it and it's probably more of a utility. That being said, you have service quality, you have speed of delivery, um, you have what percentage meets qualification. So, that's kind of a quality metric. Um, and so we have to look at the other variables like the actual purchasing process. So think about swallowing up the entirety of the customer experience and think what happens before, during, and after someone makes a purchase from me. How can I make that as easy and seamless as possible? So sometimes it's expanding the scope so that you can have differentiators that are outside of the core product that still in a very real way deliver value. And so it's basically getting out of the micro of this local transaction and think about the macro of the business or customer that's buying it, right? And so if we can frame the purchase from you as a even though it's locally more expensive, it is globally cheaper to purchase from you and that they get it faster, they have fewer mistakes, etc. Then you can have a commodity product that becomes decommoditized through the additional kind of layers of service and value that you provide around it. That's thing one.

24:47The other thing is just the brand associated with it, right? which is what are the associations and pairings that we do on an active basis. So that people like for example the reason that sometimes these types of businesses are relationship driven is that the person that they'd rather buy from they like that salesperson. So that person's reputation and brand kind of confers over to the product. And so we have to think what kind of brand um allows us to charge a premium for what is otherwise considered a commodity. And so those are the two elements of basically increasing the premium. the brand itself, right?

25:19And the associated elements of the offer or product or deliverable. And so those are the levers that you have at your uh disposal. The brand will take time. The other ones you can do more immediately and and thinking and reframing the sale from local, short-term to global, long-term or the holistic view of the business. >> We sell uh performance marketing and demand generation services. >> We I told her about the visual thing. We got to do the visual thing.

25:43>> Yeah. um predominantly to healthcare and medtech companies although we have a lot of other industries in our under our uh >> our portfolio. Uh we're based in Canada. We service uh North America. >> Uh I'm here with Jean Franis who's my VP of demand. >> Jean Fran. >> Um and so we do $2 million per year in revenue. We'd like to be at 10 million.

26:05Uh, and what's stopping me is I think my own ability to take the gamble on trusting other people with sales and and marketing. Like, we're a marketing company and we do a great job at helping our clients. Um, but I'm a bit shy about having the courage to make the investments that I know I need to

26:30>> um, in that side of it. And you can kind of tell my voice is a bit raspy because I'm a bit embarrassed. >> No, probably been, >> you know. So, >> so you're two million bucks a year. You're in the top 5% of business owners, man. Thank you. >> It's like this room is always weird for everybody because I one of the big pieces of feedback I get is like I'm really cool in my hometown and then I came here and I met like five people doing more every month than I do every year. And then you're like, okay, there's levels. It's fine. But that's the point of being here, right? >> Yeah. Exactly.

26:56>> Um, okay. So, performance marketing. So, how are you getting customers right now? Uh so mostly my efforts are through events. Um so we'll go to different events locally and we go to different conferences and then I post uh uh videos on LinkedIn. >> Okay. >> Uh which do pretty well as well. So we've done >> So what percentage comes from each? >> Pardon me. >> What percentage like of customers? How many customers you have right now? >> Uh like 40. >> Okay. Are you doing with SMBs? >> Uh no, most of them are like midsize.

27:21>> You're probably mispriced. >> That's what Ed said, I think. >> Yeah. >> Yeah. >> Yeah. Yeah. So, we I mean our retainer is 3500 to to 10,000 a month. >> Okay. >> So, yeah, you you're probably right there. >> Okay. >> Yeah, you're probably mispriced. But, um what's churn? >> Uh it was a few years ago quite high. We would churn quite a lot of clients over three months, but with the help of Jean Franis,

27:46>> Jean Franis, >> we are our our churn is probably more like 10 10 20 10 to 20% >> per >> uh per year. >> Oh, per year. Okay. Yeah. Um, so it seems like you've moved up in Avatar. I'm guessing >> you just didn't move you just didn't match it with price. That's all. >> Correct. We've gone up market. Um, but and >> just forgot to change your price. >> Yeah. And I think part of it is >> What's your margin? >> Uh, 25%. >> Yeah. You're mispriced. Yeah, >> that's all.

28:11>> So, why can't we do more? I'm afraid. Why am I afraid? Because I don't make enough money per customer. Why am I not making enough money per customer? Is it because there's something structurally wrong? Do I sell the wrong avatar? No. You just simply forgot to change the price. If you're probably appropriately priced, you're probably closer to like sixish a month, >> okay, >> is my guess on average revenue per user. And if you were to do that, >> you would be at like 50%, you know, plus margins. If you had 50% plus margins, you'd be like, "Dude, I don't mind spending 250 grand to get another baller in here or spending more on ads or whatever." It's just that right now

28:43>> when you're running 20% on 200, it's $400,000 a year. Does that include owner pay or no? >> Um, so like the SDE would be like more like 600 to 700. >> Yeah. Yeah. So I think yeah you you just you just need to you're just mispriced. So we got to change the price and then um and then we need to higher to to then do more. >> Yeah. So how will I know that? Um because as as I assume as I go more up market and price it higher there's going to be a little bit more of a the conversion rate will go lower.

29:13>> No. You're probably losing people who are legit because you're too cheap. >> Interesting. >> You're bordering on so cheap for a mid-market company that they don't believe that you're legit enough. Yeah, you know, we closed 15K a month the other the other day and the other month and they weren't even batting an eye actually. >> Yeah. Which means you undercharged. [laughter] >> No, but like and I like Good. Yeah. >> Um

29:38>> yeah, price. It's interesting. There's a couple like big limiting beliefs like price is a huge one because it's like this emotional thing. Same thing with ad spend weirdly. Like people are like I can't go past $1,000 a day. Like I just it just doesn't work. It's like I mean >> I think when you grow up like pretty modest like below like you know pretty poorish you know what I mean suburban poor but right you know you kind of you're at a level where oh $2 million like I don't know to your point other people that make that >> outside of the room you know so maybe I am kind of stuck in the

30:05>> people won't be willing to pay that because it's a lot of quote unquote money. >> Do you have big Do you have friends who are business owners who make more than you? >> I do now. >> Okay. [laughter] >> Yeah. This is like like you're selling out of your own wallet. It's just a classic like it's just you're just selling out of your own wallet. It's kind of like a mechanic being like I would never pay anyone to change my change my oil. It's like yeah cuz you know how to change oil. Yeah. >> But if your car is [ __ ] >> and you don't know how to change oil, you'd pay a lot, [laughter]

30:33>> right? And so if you know if if a business needs leads and you guys are obviously good at it because your turn's low, >> right? >> Like why can't we do more? We need to increase cash flow and increase how much customers are worth. Great. What's your close rate right now? >> Uh, pretty high. 60 70%. >> So, do you know my pricing guide for for close rates? I've seen that. >> I will download it after. >> I'll tell you right now. You don't even have to. Uh, so for everybody, if you're at for me, like my my my you're at the right price is 35%. Close rate.

31:04>> Um, if you're between like 40 and 50, you probably have like a 25 to 50% price increase. >> Sure. >> If you're between 50 and 60, it's closer to like, you know, one and a half to 1.75. If you're at like 60 to 70, you've got at least a double. >> Okay. >> Uh in pricing. If you're at 60 to Did I say 60 to 70 already? Um if you're like 70 to 80, you probably have like a double or triple >> um in price that's that's kind of like sitting there. So I think the the sixish a month is probably a good first bet.

31:33>> Um and do you have some sort of way that they scale up if they >> Yeah. Yeah. So more services, more like enhanced services. >> No, but is there anything that's tied to like revenue or ad spend? No. So, it it is flat. Uh it has typically been a flat fee, but you know, we've done some performance stuff or >> I try to not scale with the ad spend. We've tried to because we want the client to like realize the gains of of investing in us. >> Yeah.

31:57>> Well, what you can do is um something that I find works really well is you can scale with the ad spend, but you have decreasing with each tier. >> Oh, yeah. Yeah, we were doing that. >> Yeah. And so, what happens is you'll quote you'll basically it's it's because of survivorship bias. Everyone wants to look at the top most expensive one and you can make that one tiny. >> Um and then people are like I just want to get to there. It's almost free, >> right? >> But you don't make it retroactive. So you have four, call it four watermarks at, you know, 10,000 a month, 50,000 a month, 100 whatever, right?

32:26>> And then like the first, you know, it's it's $6,000 for the for no matter what you do. And then above 20,000 to 100,000 it's an extra whatever 5%. And then from you know 100,000 to 200,000 it's an extra two and a half. Right. >> Right. But that that two and a half is only charged there. So it doesn't retroactively go down. So it just adds on top, >> right? >> But it's all incremental margin for you because it's just clicking buttons. >> And what about like below 20K?

32:49>> No, that's it's or right the greater of. So like $6,000 no matter what. And I would say that this is a requisite for being a customer, which I'm sure you already have some like >> you got to spend at least 20 grand a month or something like that on ads. >> Yeah. Yeah. Yeah. For sure. >> Right. So it's like it's six for the first 20 no matter what because it cost us a lot to get you set up and then after that it's this. >> Right. Okay. Um, I'm going to pass it on to the next person, but I want to thank you for having us here. You bet. Um, it's a great workshop and uh, we appreciate the

33:16>> Don't be embarrassed about winning, man. >> Okay. I got to learn to say no. >> Well, thanks for this opportunity. >> You bet. >> Um, a little bit background about me. I'm a dentist uh, uh, my practice for 15 years and I focus on dental implants. >> Okay. And um the primary uh patient inflow method has been Google ads for the past eight years. Uh I'd say about half of my patients come from internal referrals from friends and family and then the other half come from Google ads. That company that I've been with for eight years has had the same landing page for eight years and has not gotten any feedback from us about lead quality or anything. And past year, I would say,

34:02>> don't you wish you had him as a customer? Like, I love this, right? [laughter] >> That's easy. >> The quality has gone down. You know, it's just all gone to [ __ ] So, last year I decided, you know, this is a really important part of my business. I want to just take ownership of this. So, I partnered up with these people who I was introduced to, say, hey, you crack the Google ads algorithm. I'm gonna uh work on the the coaching and lead nurturing and value building aspect of it. So we and that didn't work out. This company didn't know what they were doing. So it all went to [ __ ] So anyways, now I'm working with another company trying to build um the funnel, the landing page and whatnot. Have not made any content, but I have all the setup to start doing that.

34:47>> Uh so I wanted to uh build content specifically for the funnel. So when people click on the ad, they have a video of me, you know, social proof, all that kind of stuff. But I also want to build uh or create content uh just for general like social presence and and also value building. Um so should I focus primarily on the Google ads first and lean on that and then start working on the general content?

35:14Second question I have for you is I've been doing what you had said that everyone does, which is survey the market for what the price is, charge a little bit less, and offer ton more value. So the ton more value that I'm offering is a lot of additional procedures that go along with the service that I'm providing that help create predictability and long-term. And I want to lean in on that as a differentiating factor because a lot of the competition is newer, newer chains, newer doctors, they don't have the track history. And I have a lot of patients that I've treated 10, 12, 15 years ago that I want to sort of highlight. And so in that regard, should I continue charging or advertising the price that I am advertising and just highlight the more value that I'm getting to get more more revenue coming in first and then try to raise my price or you know love feedback on how to position myself in this new funnel of this new

36:11>> my favorite way of doing it would be just raise your price. >> Okay. >> I mean I' I've told my father this for the entirety of my life and he has still never listened to me. So, you know, maybe maybe it'll work for you. He's like, I booked out for 9 years. And I'm like, yeah, what if you just doubled your price? You could work the same amount you currently do every day and just make twice as much money. Uh, and so unless you have a demand issue or a conversion, like, do you have a conversion issue right now? Like, when you get people in, do they not buy?

36:39>> Um, so I don't really have a sales process, a sales system. It's all just me. >> Well, you do have a sales process. You just haven't documented it. >> Right. But I just, you know, I just talk to them and let them know, hey, this is what your situation is. This is how I would end. >> I'll bet you if I recorded you and I played 50 of those side by side, second by second, you'd be like, "Oh, this is the part where I make the same amount of jokes about this thing." And then I asked them why they're here. And then I say, "What have you thought about before? Why now? Why why is this to help you out?" "Okay, got it." "Okay, has there been anything else?" "No." "Want me to tell you about this thing? I think you might be a good fit. Here's what you can expect." Great. Do you have any questions for me? Blah blah blah. And so, you probably do have a process. you just don't write it down.

37:20>> Now, after you know, reading your books and listening to everything, now we're we're working on creating a system and then educating the team on it so they can carry the baton. So, >> um that's where I am. And uh you know, um raising the price, I certainly can justify it just because like I said, I have >> You can also do it even if you couldn't justify it. >> Just raise it anyways cuz you felt like it cuz it's Tuesday. Cuz who cares? You raise it cuz you want to. it's America and you can ch charge what you want and they can choose to say no and you can choose to say this is all what I'll what I pay what I uh what I charge and so like it's like just in terms of the idea of like I have to do this because to do this it's like you can just do it like we just bought a company a year ago and I mean I tell the story cuz I like breaking the belief and so we bought it we did this massive analysis and I was just like they had the whole leadership team and they're like so what's the big how are we going to like grow the hell out this company. I was like, I think I'm just going to double the price. And they were like, what else are we going to do? I was like, I think that's it. I think that's all I'm going to do. And they're like, but what about all these other things? I was like, I don't think that's I think we're just going to do that. And so we did that.

38:32And the sales team was like, so would we need to retrain the sales team? I was like, no, no. I was like, you're going to say the same thing. And then the very end when you say the price, I was like, instead of saying this number, you say this number. That's it. And then we did that. And um it took me nine calls with the founder, nine uh and he didn't agree. And so we settled on 50% increase. So we increased the price by 50%. And close rates went up

38:58>> because they were mispriced. And so we sold a higher percentage people at 50% more money. And if you do more times more, it's way more because all that goes to the bottom line. And so uh that's the beautiful thing with price increases is that it's all profit. >> [laughter] >> one of my favorite ways to make more profit, just charge more. So, um TLDDR, yes, I think you should charge more. And in terms of uh the ad stuff, uh you're either going to have to learn this yourself, which feels unlikely, uh or you're going to have to keep doing the trial and error.

39:29>> Well, I am learning it myself. I actually have uh started the courses and gotten into Google ads and Facebook ads. It's again, it's not something I'm going to do myself, but I can't delegate until I have full in-depth knowledge, which is kind of how I've built the rest of the business. >> I like it. >> We have uh the lab side also on site, so it's vertically integrated. We just need to just crank that engine of of >> Once you get that going, the ultimate version of the business is that you start buying other practices,

39:56>> right? >> Because then you can install your systems on top, your reputation, etc. And like that's when >> Yes, sir. >> U my name's Luke Miller. I sell online coaching, training, nutrition to physique athletes primarily is our market. Physique. Yeah. Um >> topline revenue of the team this year was 900 900,000. Uh we're kind of projected to hit 1.1 this year based on monthly revenue targets. Um I'd like to be at 10. Um and two concerns. One primary constraint is like lead flow, like the amount of leads that we're generating in that market. secondary that I think is part of the stopping me is concerns on the vertical in that market. Um because bodybuilders are not the richest people in the world. Um but it's what our reputation is known for.

40:43Like we have J3 University which is our coursework university side that's built that reputation. >> Um and so that's like the two main issues that I see now. All of our lead genen has been organic. We have no paid ads currently. So that's kind of like our next step in [clears throat] lead genen potentially. Um content creation is daily. Um so that's on my personal account >> on Instagram. >> Uh Instagram and YouTube. >> Okay.

41:08>> Yeah. So lead genen is my primary problem. So direction on like paid ads with that is is helpful. We do paid ads for the university um which does great. But that and then thoughts on the vertical within like the physique sport market. Well, I think that being, you know, working with physique athletes is kind of one of those aspirational things I was talking about earlier. Like if you market to the top end of the market, I'm sure you get people who inquire who are not physique athletes but just aspire to be. >> We do. >> Do you take those as customers?

41:35>> We do. >> Then I don't think there's any issue with you kind of branding and positioning in that way. >> Okay. >> Um cuz you'll again you'll scoop up the people who are underneath the market. You just won't scoop up the people who are above it. >> Okay. >> And so you being already anchored at the top is a good thing. So you think about like the branding that's associated with like Northace, like they're not showing, you know, a mom walking from the Range Rover from the car to the door. What they're showing is a guy on the top of Everest because that mom will think, well, if it keeps him warm there, I'm sure it'll keep me warm from the from the car door [laughter] to the house, right? The Range Rover shows you, you know, going up a mountain, you know, and doing

42:08>> whatever they do with those cars, but the person who buys it, it's like, well, it'll probably be okay if it snows, >> right? And so having an aspirational anchor, right, um, still makes sense. We have a portfolio, right? But then we do this. And so people who aren't necessarily portfolio ready can still get benefit from the business. >> Okay. Yeah. Cuz my main concern is like I'm no longer in the competitive space. Like I just run the business. So that story

42:32>> doesn't matter at all. 0%. When I ran gym launch, I owned zero gyms. >> That's fair. Yeah, that's fair. Um, and so >> they just care about what you can do for them. Then on the ad side of the creatives, like we have had some trouble in the past with like showing physiques um as far as like ads on the university side. Um and so my goal was to primarily get into storytelling of like that journey to accomplishment. Is that kind of the direction you would head with ads? And

42:59>> would it be combo me and UGC or would it be predominantly me at the start and then if I'm like the face of the business? >> Well, I mean I think UGC for sure would be great. >> Yeah. um which you can build that loop into any business which I think I highly encourage every business to have. I made a video about this but basically I try to as quickly as possible build a loop in every business where we advertise like there's a onetime input from me to advertise. The advertising gets us customers. The customers get us testimonials and reviews. Those testimonials and reviews spin the wheel of advertising so that that first time effort only comes once from me and then from that point going forward it's a self-looking ice cream cone. And so as long as [clears throat] you have a cadence or an incentive for people to um make you advertisements or testimonials and the amount of testimonials you get surpasses the amount of ad creative you need in order to get new business then that business becomes self- sustaining from an advertising perspective.

43:50>> So for me always my goal >> the differentiation is we have some circular marketing that happens. So like ads on the university drives people to the university and then the university converts it into the coaching business. And so like the ad side on the coaching business should be pam predominantly UGC. >> I think that you might So this is actually a really interesting fun one which I know will apply to more than just you. So I had a lady 6 months ago who had a um she helped hair stylists learn how to put extensions in. So it's like how to do hair stuff.

44:21>> Yeah. >> And then she also had a business coaching thing for how to once you have know how to do extensions, how to run a better extension business. And so she was like, "Well, I'm advertising both of them. What should I do? Should I is it two businesses?" Blah blah blah. And so I was like, "Okay, what's LD to CAC?" And so it was 13 to1 on the business coaching side and it was 37 to1 on the teaching women how to do the hair thing. >> Yeah. >> And so the issue wasn't that she had two businesses. She had a front end and back end that she didn't realize was a front end and back end.

44:50>> And so I was like, "Okay, turn off your ads for the 13 to1. turn on the ads to 37 to1 that has a 20 times bigger TAM that brings everyone in and then all your focus goes on ascending customers from the profitable acquisition into the higher higher level back end that we already know not all customers are going to be a fit for and that's okay and so you said that the ads are working fine on the education side so I would say cool the issue that you probably have is you need to have a more choreographed ascension process from education into service

45:20>> okay >> and then that becomes the business >> which we're working on it's not where it needs to be 100%. >> But as soon as you have that fixed, the results that you're getting on your current business for the education side, which are already doing well, will just do like three times better because now you can actually have a blended LTV >> off of the single cost to a car customer. >> Yeah. And we keep them pretty separate cuz there's different owners in university business that aren't in the coaching business.

45:44>> That's just complicated. >> It's messy. But it's it's I I run the coaching business. So like I'm predominantly the one running it. >> Well, then you have to just treat it like an affiliate relationship. that's arms length and then you just give them some sort of kickback and as long as cuz then at that point you have >> Hello. >> Hello. >> Um my name is Veronica White. I have a school community where I sell project management courses to people who want to become project managers. Um we did 700,000 in revenue and uh I want to be at 5 million.

46:16>> Okay, >> this is a big jump but it's true. Um and I think what's stopping me is twofold. Number one, I basically get all of my traffic through Tik Tok Live. >> Okay. >> If I go live anymore on Tik Tok, I'm just going to be like a full-time streamer. I do it all the time. Um, >> and then the other thing is that I'm a little bit concerned about our churn. It's between 12 to 14% on average. >> What's the price point?

46:41>> $99. >> Okay. What insurance? You said 12 to 14. >> Yeah. >> Okay. Um, what's conversion on the page? Um, on average 5%. >> Okay, that's good. Um, do you have an ascension motion in place? >> No. >> Yeah, that's all. That's it. Um, so all people who buy the thing get a free call to talk to somebody on your team. How many sales a day you doing?

47:14>> It varies because >> that's fine. Just rough. >> Okay. Uh maybe like three to five. >> Perfect. Easy. One guy could do that or gal. So you add one person to your business. That person like they buy in, they watch a video before that call. You give them an onboarding and then you set a time for them to meet with you 7 days later. Give them another video. Uh and then seven days later, if they did a good job and things seem good and they're a good fit, you can offer them something more expensive. If not, you say, "Awesome job." It'll it'll decrease your turn. It'll increase your activation and you have the opportunity to upsell.

47:50>> Okay. Can you give me an idea about what you think would be valuable to offer them that's more expensive outside of one-on-one time with me? >> Yeah, don't do that. Um, I mean, you can do it in the beginning, but like I think you're going to if you want to get to five, it'll be tough. Um, what is the next problem that comes up after someone learns the stuff? >> They need a job. >> That sounds like a good thing that you could help someone get that's valuable. Right.

48:16>> Yeah. Yeah. It's it's been a little bit of a struggle because placement is typically based on relationships and so obviously it's a long-term game, but it feels like >> I think that you could very easily run an AI agent who every morning has a cron task that scrapes all job boards nationally for all project manner position positions. And you can reach out to those companies and say that I have a community of project managers who do X, Y, and Z and I can match them for you and if you do a good job, usually they'll pay you too.

48:49>> Okay. >> How's that sound? >> I mean, it sounds better than what I got going on right now. >> Right. [laughter] >> I love this for us. >> Me, too. >> Sound good? >> Yeah. Yeah. Yeah. >> Also pretty that was also pretty straightforward. So obviously you're like my wife I just found out. >> Um my name is Bernardstra. I sell online courses and membership to musicians that want to learn to play jazz. We do 1.36 revenue. Um I like to be at 5 million.

49:20And what's stopping me is a couple of things. So one would be just founder bottleneck. Like I'm like the marketer. So I wrote our paid ads 30,000 a month and created and managing them and I do email marketing and um all that stuff and so I can't really scale any one of those. Um so that's the founder bottleneck. And then the second is I either have a lifetime value problem or it's too low um our yearly revenue retention is 38%. Um or I just don't have enough marketing power to drive enough new customers. What's the price?

49:58Um, it's the there's a member. So, we sell courses on a card which you go anywhere from like 29 to 197 or we sell membership which is 39 a month or 390 a year. >> A lot of people come in. >> You got you got a bunch of courses, right? Bunch of programs, whatever. Got all this stuff. >> Um, or what's the other thing? >> Uh, our membership. >> And what's that?

50:22>> Uh, that's 39 a month or 3.90 a year. Um, we do liked it. Lots of discounts on us. The average members probably pay $24 a month. >> Okay. And all these programs are was it 27 to >> we run like some low ticket meta ads like $29 products. Those are pretty successful. And then we sell like monthly promotions like 197 courses.

50:46>> I'll just say 497. Okay. That work is our range here. >> Yeah, that's good. >> Okay. You're just missing a back end. >> Yeah. You get all these front ends. >> Yeah. >> You just don't have back end. >> So you're you've been trying to make money off of what most people would consider a loss. >> Yeah. That's the issue. >> Yeah. >> It's like if I'm a grocery store and being like, "Dude, I'm selling out of diapers left and right, but I'm not making a profit." It's like, "Yeah, cuz you're not selling the other [ __ ] I'm selling the other stuff." We got to sell fruit and Fruity Pebbles, [clears throat] but you both have fruit.

51:19Anyways, um But basically all you have to do is you have all of these sales that are coming in every day. >> Yeah. >> What do you include with that? >> Uh those courses just like an online course. You can log into it. >> So you add in an onboarding call for every person. Now it's the more valuable thing anyways. You're going to get a oneonone onboarding call.

51:46And so when people come in through all this, um, they'll have a call with someone on your team and between the time they buy and the time they watch, they should watch a little VSSL that pre-frames that call. And if you want to get Super Saiyan, have a 7-day delay, give them homework between that first call and second call. And on the second call, you close. And here is where you can sell probably something in the neighborhood of like three to like $8,000.

52:25So, I just got to figure out what that's going to be then. >> Yeah, that's the model. Whatever you fill like you fill, whatever. But that's the that's the model that's missing right now. >> And so, all your metrics you've been trying to make money on is is here. It's just very tough. Like, you're razor thin. >> Yeah. >> Right. Right. But if all of a sudden if you know that 20% or 30% of people buy a 4k average ticket on the back and that's 800 conservatively your average sale all of a sudden your economics pretty pretty juicy. Yeah. And so to put that in perspective how many transactions are you doing a day?

52:58>> Uh I I know the answer to that. >> A month. >> Uh a month uh maybe 300 or so. >> Right. So it's 10 a day. That means two guys it would take to handle that volume. If each of those guys, let's say we close at our 30% with a $4,000 average ticket, it's 12,000 a day times 10. So you've got whatever 300 300 plus,000 a month that's coming in on top of your existing revenue. That takes you straight to five.

53:29>> So is that so so do they they become a member and then we upsell them on the back end of that? Is that how that >> they buy anything? >> Anything doesn't matter, >> right? Yeah. And then we just did bridge receptive language that bridges between product and product. >> Okay. [clears throat] >> Yeah. Are you staying with us after this? >> Uh what was that? >> Are you working with us after this? >> Yeah. >> Okay. Uh building sales motions like this is like literally what we do. But yeah um uh that's beyond that is probably about to go right now. But like that's that's how it works. Okay. Thank you. Yeah. Thank you.

54:08>> [applause] >> yourself about like trying to >> Can you clearly define how to find out what is valuable to your marketplace? Yes, you ask them to buy it and if they pay you for it then they have found value in it. And if you're like what how do I know how to define value? I actually wrote a book on that too. Uh [laughter] I actually made an equation for it. So the value equation has four components.

54:34One is the dream outcome, which is what is the thing that people ultimately want. And then the other three variables are things that detract or pull away from that dream outcome. And so if I can give you this dream outcome, let's say that you want to get a six-pack, you want to be in shape. And I say it's going to take two years. So it's going to be slow. Uh it's going to take time from you every single day. It's going to be t it's going to take a long time. It will take you a lot of time. So that's two elements of time. Uh it's going to cause you to have to do things that you don't want to do. And it's going to cause you to do stop doing things that you do want to do. So you stop good stuff and you start bad stuff. And on the top of that, there's a chance that you might not hit it even if you do all these other things right and you take all this sacrifice. Is that a valuable thing? Well, I mean, it's kind of, but I basically described the fitness sale to you. You got to work out. You got to stop eating tacos. You can't drink on the weekends, right? [gasps] It's going to take multiple years. Uh, and it's also going to take you time every single day. You're going to be sore. You're going to be tired. all this stuff, right? Um and then on top of that, uh you might try this whole period of time and you might have terrible genetics.

55:41And so, uh all that to say, it will that's why that's why you have to spend an hour arm wrestling somebody to sign up for personal training. On the flip side, if I sold GLP1, which is a diet drug, right? And they have a new drug that's coming out um that they're going to pair with GLP1, which is like a muscle preserving drug. So you can literally keep or maint or gain a little bit of muscle on this drug while also starving yourself. Uh then you have a better physique and it takes no willpower and you just take this drug.

56:08So it's fast. It's virtually guaranteed because it requires no willpower. Um and it gets you the physique you want. Which one's more valuable? Which one do you think would be harder to sell? Probably the personal training one. And so fundamentally this is how you differentiate value. Hopefully that answers your question. My question is in in regards to the correlation between content and context, right? So we said again the whole big thing here is that there's a community aspect in terms of content. So whatever courses and all that stuff, most or many communities have a starting point of quick win, 10 days to this, 90 days to that, 10 kilograms and whatever. So if I'm looking at retention after that, um again it comes back to your question of oh I have to put more courses in more content.

56:58Um what would you say can drive more attention on a long term where the base of the content is framed in a in a time frame? >> I think you're talking about like promises. No. So like I have a community 90 days to Yeah. lose 10. >> What happens on the 91st day? >> Exactly. Like how to actually keep people. >> Well, it converts better, right? But it will also have higher churn.

57:24>> It's a trade. The more you promise, the lower the bar for saying yes, but also they have more they have less reason to say yes, and so they have more reason to say no, which means they'll leave. It's a trade. Like the perfect world is one where you say, "I will promise you absolutely nothing. Yeah. >> And you should you should buy it only if you're this very rare type of person and it may or may not suck. And if someone buys at that point, the likelihood that they churn is significantly lower than like I'm going to save your life in 30 days.

57:53So the expectation significantly lower. That's just a trade that you make. >> Yeah. And in regards to the community being a factor like okay after these 90 days the community is what? >> So two things. So one is the qualification piece that I was referencing earlier. Are they staying for other people? Are they staying for you? If they have to stay for you, then you always have to be generating stuff. If it's to stay for everyone else, everyone else already does the generation on their own. Um, the other piece, shoot, I had it. Oh, um, oh, so it's making sure that whatever problem you solved with the first 90 days, there's probably a clear problem that when that is solved creates well, when that first problem is solved, you create another problem. Like all problems lead to more problems. And so, as long as you're clear about what that new problem is, that becomes continuity. And so the the classic example that I've I've given that I've seen the people who have phenomenally low churn um inside of school that do create that are not kind of quote that are not high qualification but are actually high on the on the delivery themselves are people who have consumable uh consumable deliverables. So it expires functionally. So, it's like the the one-time thing, the 90-day thing, the course or whatever it is that you get to to convert people on the front end ideally should be sort of like a black box of like this is the system to do lose weight, to, you know, get your marriage fixed, to make money, whatever it is, right? This is the system. But the best in terms of uh decreasing churn and increasing stick is going to be I give you this thing one time, you learned it. But in order to run that machine, you still need to buy ink from me, right? you still need to get the hot list of wholesaling um you know real estate addresses that are new this week and next week they're going to be different and the 3D printing community which we saw like he had two or 3% churn monthly and it was because he would find his own team would scrape and figure out what are the top ranked 3D printing uh products that are selling right now and then he had already taught everyone how to do the 3D printing and so they stayed so that they could get whatever that news is so it's like how can I have that blend of educ education and news functionally that consumable and then that's if you're in a broadcast kind of community where you're the one providing the value and the deliverable that is what I've seen like works really really well if it's not hey everybody in here provides value for each other

1:00:11>> I sell genetic reports and supplements >> and we've done 51 million going to be 51 million this year >> and every year is growing so about 22% growth this year um about 22% bigger Um, a lot of our systems are in place. The place, the system that needs the most work is our marketing and funnels. Our retail is by far, I would say by far, we do about 22% retail, 40% wholesale, and the rest on Amazon.

1:00:42>> Okay. >> And I would say the biggest thing holding us back is probably me. Um because I have a headful. I'm a doctor and I have all this information and I have all this genetic stuff and I have all these different types of people coming to me and saying I have this problem. Can you apply this genetic solution? You know, I have these genetics. Can you evaluate the problem and give me a a guide? Yes, here it is. So, I deal with infertility, pregnancy, neurotropic issues, depression, anxiety, ADHD. I mean, all that and I can solve it with my systems.

1:01:17>> All right. And I've got tremendous outcomes. And that's why we grow naturally. Word of mouth as fast as we have been. >> Only word of mouth. >> Yeah. Word of mouth literally >> this whole time. >> Yes. >> Wow. >> We we do have Google ads and beta. Um but >> what are you spending in ads? >> Maybe 60,000 a month. Okay. 50,000 a month. >> Yeah. >> Um and they don't they convert but they're not

1:01:42>> I will agree with your claim. It's worth >> Yeah. Um, so I would like to establish clarity for myself so I can go to my team and say, [clears throat] >> "Look, this is the one thing that we're going to be working on." >> Yeah. >> And we're going to be dealing with, say, infertility or pregnancy or what have you. >> And then we we build the funnels and the systems and the director of marketing or whatever the title that's going to be guides the team and we can then grow and keep going. And the next dollar figure, I don't really care. I don't think I'm going to sell. I'm not sure. I got three three sons.

1:02:15>> Yeah. >> Um, you know, we're extremely profitable. I'm happy. My CEO and I are both hosting. >> We we love the business. As long as we're having fun, we're going to keep going >> and um, you [clears throat and cough] know, I'm comfortable. I've got all the money I want. >> I could retire now, but I I I have this knowledge in my head. >> Got to get it out. I want to help more people. >> Why do you So, why do you want to, >> Unless I misunderstood, why do you want to niche down?

1:02:39>> I want to not niche down necessarily. Yeah, >> I want to establish clarity. >> Yeah, you want a unified message. >> I want to get a unified message. And how do you unify a message when it's whole body and you have all these people? I mean, I used to go to >> Well, I think you chunk up. I mean, been like to me the message you have is really clear, which is that the problems that you have come from your genetics. >> Well, they come from your genetic vulnerabilities, but they they truly come from your environment and your lifestyle.

1:03:05>> Okay. So, so it's like your problems come from one of three places and we will help you with this one or like I think this is I don't I don't think your messaging is that as confusing as you feel like it is. >> Well, let me let me give you this. >> I feel like I understand what you do. >> Yeah. So, I wrote a book called Dirty Jeans. Not these but genetics, right? >> So, >> that would have been a turn. Yeah. [laughter] >> So, I didn't used to do landscape construction but um so with dirty jeans the concept is we all have genetic vulnerabilities. the majority of genetic variations that we all inherit, we all have

1:03:38>> predispose us to various risks. High blood pressure, anxiety, certain situations, what have you. I can look at your genetic report and say, look, you have genetic vulnerabilities here. If you apply this lifestyle, clean up your environment, eat these foods, avoid these foods, supply these nutrients, evaluate these labs, you can bypass all those genetic variations. >> That's that's the concept. >> Yeah. >> So, optimization of genetic vulnerabilities, improving outcomes. I feel like this is so clear. I'm trying to I don't understand what's wrong.

1:04:08>> What's wrong? Is is well possibly I've been talking about >> is the site super confusing like like with this like people do people come in confused? >> Customers will come in well there's a lot of influencers out there which I don't name names but MT Jafar who's heard of the genetic variation MT Jafar? >> Okay. So I MG Jafar is it's a common genetic variation which produces >> I thought you were naming names.

1:04:33>> I was like this guy just came out swinging like let me tell you about Joe Rogan. I'm not going to name names. >> Yeah. Go ahead. >> Well yeah that that All right. [laughter] >> You're good. Okay. So M Jafar. >> Okay. >> Sounds like Aladdin. Anyways yes. >> So I am I would say the world's foremost expert in this area. And so these influencers have hacked on to this. Yeah. >> And they're using fear

1:04:59>> to sell supplements if you have the genetic variation. >> Yeah, >> that is incorrect. >> So, I got to get back on social media. Even though I was on social media in 2011 and 12 and speaking all around the world on this, now I feel that I have to get back on social media >> and talk about this >> even recruit those influencers and like teach them the light. Well, what's funny is the influencer that you're talking about, uh, he read my book and said I was a major influence on him. I was like, "Dude, you need to read the book again."

1:05:29>> Okay. [laughter] >> So, regardless. >> Yeah. >> Uh, he's a fan. >> Yeah. >> Well, I'll say this like I think that um to me I'll say this. I think that probably I think I speak for everyone here. I speak for all of us. Um, I actually think that what you have is really clear. Like I wasn't really confused by anything you said besides MTF far. Um, but but the actual like what you do, it's like you have genes.

1:05:57We test genes. Three things influence them. These things you control. This one we add in and we sell it. >> That makes a lot of sense to me. >> Yeah. We sell it, but also we we just have tools that help you understand. Yeah. >> Because even if we don't sell it and I actually >> You still help people. Yeah. >> Yeah. And I don't want people to buy a supplement if it's the wrong one. And that is actually a huge problem. You know, our sub is really strong and effective. If if a mother buys something for herself, >> you're making the best sales pitch. It's awesome.

1:06:22>> Yeah. Well, it's true, though. >> If an erection lasts longer than 4 hours, like call guys, be careful. I don't want you to take too much. You know, you're crushing the pitch. [laughter] >> So, how do you design a a marketing funnel that would convert a confused mother who's >> or you know, an infertile dad? >> This is a quiz funnel. Yeah, I I figured you were going to say that. >> Yeah, for sure. I mean, this is like I just figured you already had one.

1:06:50>> Well, I need a team that will build it for me. >> Yeah. Um, this is this is super like you just don't know anybody in the marketing world. But what you need here um what you what you need though is like you need one guy who like this is not this is it's just somebody who lives outside of your world but in the marketing world who here in is in the marketing world who's like considers himself what is he what he's asking on a scale from one to raise your hand is it hard to build

1:07:17>> right this is super easy to build like you can build this as an afternoon this is like a jot form that has that has quizbased questions that then just decision trees into 10 different videos based on the 10 most common issues that people come in with. >> Yeah, fair enough. >> It's literally it and then after that it makes recommendation to physical products like super easy. >> Yeah. >> So my plan is to make a bunch of videos for YouTube longer formish and then cut them short on you know whatever and put on LinkedIn for B2B.

1:07:48>> I would do this if I were you. I would recruit as many influencers who are science scientistic. I'll say that not scientific scientistic about health and wellness and things like that. I would recruit them after I build my uh quizbased funnel and then I would have my kind of low ticket or low barrier offer be the genetic test. So they take this and it's like great, you could be disposed of these things but take our test. Great. And then they get their test results which I'm assuming gives them recommendations on supplements that they would. does not because I don't I don't

1:08:19>> I think we're the only ones that create a genetic report which don't then sell our own supplements because I don't want people to go to supplements first. Okay. >> I want them to do lifestyle first. >> Yeah. I had to like shake my own head. I be like, "Yes, rest. That's good. Yes. Healthy." [laughter] >> Be a good person. >> Well, it's true though cuz I know it's true, too. We all know that you you want to help people. [laughter] you're eating, you know, absolute [ __ ] right? And there's like, stop eating the crap and you might not feel so bad.

1:08:52>> Yeah. Yeah. And buy my supplements. But, um, you feel 10% better. 90% comes from no big flurries, 10% comes from my supplements. Um, but but do both. Um, but anyways, so uh on the way in, this is this is influencers to me, influencer traffic on the front end. Literally just preaching your gospel. Have them read the book, take out the snippets, you know, promote that to their audiences. We have to have some front-end offer that they'd be driving towards. I'm guessing the genetic testing would be the thing. Do you sell via phone or people just It's follow-up sequences that then get them to buy the products after

1:09:24>> followup sequences. >> Okay. Right. So then if then that makes it even easier because if you're willing to do affiliate How much does the genetic test cost? >> Well, we stopped offering it and I just emailed today a whole genome company that we have good report with to white label it. Uhhuh. >> Um, we couldn't control the quality of our tenant. >> What's the cost? >> Uh, it'll be $400. Whole genome now for $500. >> Great. So, this is What's the margin on that?

1:09:52>> Uh, it's going to be low, I would imagine. >> Okay. So, >> I don't care. >> Yeah. [laughter] >> I believe you. So, this is what I would do if I were you and I wanted to grow this and help more people. I would recruit the influencers. I would say I'll give you a 100% of the profit on the front end test because I want as many people as possible to get tested and then I would give them all of that profit. So you make zero on that which you'll love. Um [laughter]

1:10:19>> I did work with Mother Teresa for a while. >> I believe I believe all of this [laughter] and then after that I would have all my segmentation sequences where I can maximize profit and you're going to get so much ancillary because people are going to hear about it. they'll still go to the site and buy and then the people who go through the test, they'll be happy to push it because they're going to make decent money on it if you give them all the profit, but it costs you nothing. So great. And that way that would be my that would be my process. 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 road map that I've used to go from 0 to 1, 0 to 10, and 0 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, appreciate you. And uh enjoy.