"Why Isn't My Offer Selling?" 1 Hour of Offer Strategy

0:00We help live poker players win more money who are already winning. >> Cool. >> Uh we do about $2 million. We'll do two million this year and we'd like to be at 10 million. >> Okay. [snorts] >> Um the problem is we have two front-end offers and both are converting like crazy to the back end. Uh but we have one that's 7.5K for 28 days and one that is 2.8K for 7 days. We are >> demand constrained on the the high one, the 7.5K.

0:27>> Do you upsell from the first to the second? They are not we we're not really converting because they overlap too much. >> Okay. So, is it just a downell? >> It is a it's basically a it's a downell for players who aren't playing full-time or guys who are more weekend warriors as opposed to >> what percentage is each? >> Uh we do 12 a month of the 7.5K and we do 16 to 32 a month of the 2.8K.

0:53>> It's a big range on the other one. Okay. So, what's revenue split there? said 12 time 8. So call it 100 on the the high ticket side. And then the other one is >> 50 to 70 on. >> Okay. So less on the other. Okay. Keep going. >> So the question is how do we differentiate these or do we just switch to a single offer that's more of an ascension and make the one that's maybe three days or five days and less expensive and then we can upsell to the 28 day? Or do we just say screw it, let's just do the 28 day and drop the thing on the front end.

1:28>> You said you're supply constrained on the 7-day thing. >> Yes, because it requires if we do if we start doing a bunch of those, we need to hire more coaches. >> Okay. And how are you not supply constrained on the other one? Is it less coaches for the more expensive thing? >> Gen, my business partner in the front row, he does uh >> is it less fewer coaches for the >> on the lower thing?

1:53So won't you very quickly be constrained on the top thing? >> Okay. >> Okay. Three times a day. Got it. But okay. So the problem though is that you need another person to sell more people into the front end thing.

2:21I think you might have an ops issue. Like I think it just I think like so right now if I said could you sell more people if you had unlimited capacity like could you could you sell more if you had unlimited capacity? >> We could sell more of the 7-day thing because they go four times a month so it requires less on our part. Mhm.

2:46I I feel like I feel like reskinning the ops on that. Um but when I have two products that are really similar, I tend to Do you want to stop doing the low ticket thing? >> Okay. I'm just curious because it's like it's the same thing. >> Yeah. Well, which one would you rather serve? The higher guys or the lower guys? probably the higher guys. >> And you sell them direct into that, right? >> Yeah. Direct from warm inbound.

3:12>> Whatever you're doing. Oh, from warm inbound. >> Yeah. >> Oh, got it. Heard. Okay. Well, if you cut off the low thing, you have no you have no real scalable demand gen right now. It's just you make content and then that just you get what you get and then you sell those people, right? >> And we're kind of capped on on the warm is growing but it's slow and we wanted to start dipping our toes into paid. >> Yeah. I mean, that's going to be the thing that's going to unlock like like as much as I want to say, "Hey, cut this one or that one." If you cut either of them right now, you'll just lose money because you don't have an ability to get customers kind of on demand. So, um, if I were to fix this, I would think, let's fix ops first, number one, like how can we reconfigure the delivery of the offer so that you can get 3 5x the um, operational capacity for you? And then all of a sudden that'll unlock it. So that then when we then go run paid ads, we can then actually bring enough people in. And then at that point we can say, you know what, now we have enough of the 7500s, which you might as well charge.

4:10Well, I'll just say that you have enough of the 7500s um that then you can make the call and say, you know what, we have this much capacity overall. If I just cut this, I can then triple this one. And then you just do that. >> Do you like the pricing on those two or you you were hinting at raising? Honestly, this is where I would be like, we need to like we need to do our research behind the scenes so we could because we do price analysis all the time. Um, and sometimes we get lucky. Like we had a business that we um acquired that we did a ton of pricing research and we basically said you are actually so underpriced that we will double the price and it took me nine calls to the founder to get him to like sack up. Ladies, I apologize. Um, grab his gonads. Those are unisex anyways.

4:51Uh, grab those and then make the move. And not only did we double the price, conversion rate went up because it was so cheap, people didn't believe it. And so the thing is is that sometimes we sell out of our own pocket. But you actually sell to gamblers. >> Correct. Yes. >> So you might you might actually find yourself in a situation where the more it is, the more they'll believe it, which is called a velling good. But um we would do a pricing uh kind of like deep dive on that before I would make a pricing rack for that specific avatar.

5:20But yeah, that's the TLDDR. I fix ops first, then I turn paid on, and then at that point, we'll make the split. Okay. So, you're doing 60k, 20k profit. You probably just need to have one centralized salesperson who does the ascensions. Uh, and you need to do are you trying to sell them at the end? Yes. >> Yeah. It doesn't work. You have to sell them halfway through. >> People don't People don't sign up again when they're done. >> You tried that, but it doesn't seem to help. >> It's the offer. >> So, basically, at the halfway point, you say, "Uh, you've done a lot of progress.

5:46What I want to do is a rollover upsell, which is what I just did, right? So, I took your ticket and credit towards the next thing. So, you say you paid $2,000, whatever, to get this period of time. I'm going to credit the $2,000. We can either credit it towards 12 or we can credit towards six. So, right now, your option is you can pay me another $2,000 to get to get six months or another $4,000 to get 12. You just give an either or if you choose today. Yeah. And then you let them credit the whole thing that they paid towards that. That way, it's like you just got your whole first, you know, 12 weeks free. Okay.

6:16>> Because you're crediting it towards the thing. And how do I know if my offer is sign? >> Uh, the offer bought I'm less concerned about. I mean, I'm assuming if you if you follow my stuff, you have some bonuses. You have a guarantee. It's probably conditional. If you don't hit the goal, we'll keep working with you till you do, right? So, you already have the main components. I'll bet you this is a sales problem and a sales process issue. So, halfway point, you'd want to go PIFF on either side. So, paid in full on either side. Roll over credit using the upfront thing towards 6 or 12. You either solve the problem of I'm going to coach the trainers on how to sell and I'm going to incentivize them to want to sell because they're going to get a percentage of the contract and hopefully they have some teeth in them. And if you're like they're all hopeless cases, they all hate sales. They don't want to do it. Then you bring in the saleserson.

6:58And sometimes I like in the short term the highest use of your time might be you taking those calls. It's like hey I'm the owner. I want to make sure you're having a good experience. Talk to me about what's happened so far. I want to make sure that we can tweak things. I just want you to have an awesome time. Great. Well, it sounds like things are going awesome. So, let's keep the party going. And that's kind of the that's the positioning. Let's keep the party going. Cuz fundamentally, when you go through that sale, you're like, "Okay, Erica, you know, you wanted to lose, you know, 30 lb. Great. When you're at 30 lbs, do you think you're done forever?" And they're going to be like, "Well, no." And it's like, "Right." So, then to me, this has already accomplished the goal, which is that you've learned that this isn't going to be a quick fix. This will be a lifestyle change. And so, if you're in this, I'm in this with you. And I want to match that support by giving you everything you've paid me so far towards you staying on. How's that sound? Great.

7:43Two options. And if they say no, then you downell to continuity on them back. Either way, you get them to say yes. >> Those are good, but it takes a long time to get the LTV. So, they stay within a year at least in our business. But I'd like to find out a way to bring the cash forward. So, it's kind of like, you know, we're getting cash, but it takes two three months for us to really get good profits and then of course after that doing really well, but how do we bring that cash up forward and present that ahead of time? Are you billing insurance or you billing private?

8:14>> Private? No, no insurance. >> Okay, got it. So, do you bill monthly or how do you bill? >> Yeah, so we build, you know, the first of the month and a lot of times we look to collect first and last month's rent and last month's rent fully, you know, refundable on a 30-day notice, but it sounds like an apartment building. >> Yeah, got it. So I would have I mean honestly all there's there's really only um two options that are like immediately available to you or I guess three. So number one is you could have some sort of setup enrollment onboarding some sort of fee like that that you could put into the upfront payment. That's thing one.

8:54Thing two is you could require first three months upfront. That's option two. Um, option three is you can add on additional service that many of them need and then you could uh contract that out. So let's say that what are the other things that someone has to buy in order to begin your service? I'm guessing there's some sort of moving cost or moving services, right? >> Yeah. There's like anor like transportation, your beauty, hair and nails, stuff like that.

9:20>> Yeah. So basically what we do is just create a bundle that many of those people immediately need to buy in addition to Have you read the Money Miles book? Yeah. Okay. I'm reading through it and I bought the course, too. >> Oh, awesome. Um, so big picture, the one of the first stories I tell there is a guy who owns a storage facility, right? And so he gave a free month of storage away. So very similar business to yours. Not saying that you get free month, but same idea. It's like, well, what else do you need to have when you have a storage unit? You need a lock.

9:51>> Oh, uh, you need boxes. Oh, you need insurance. Oh, you need maybe a bigger unit, right? And so all of these things pull cash forward and so well not the bigger unit but the other ones do. Um and so same degree it's like okay can we sell insurance on top? Can we sell the movein services? Can we sell the boxes associated with that? Um you know where I'm going with this? >> Yeah. >> So I think people will have some some sort of elasticity like people are very very sensitive to the monthly fee. >> Right.

10:18>> They are. >> Right. Less but people are less sensitive to onetime fees because it's only once. >> Correct. So, we just need to create that onetime fee for people. Um, and it'll be even more profitable obviously if it's not just a fee, but it's also tied to stuff they already have to get solved and if they do it through you that it just feels easier. >> Yeah. >> Does that help? >> Yeah. Something else I was thinking about too is like furniture. I mean, we have it fully furnished, but maybe we could give them like a buy extra furniture if they want a nice queen size or upgrade on their bed. We could offer that to them, too. That's something that, you know, just popped up. I never thought about that. Yeah, exactly. So, we just look at all the other problems that a customer has that they're going to pay somebody to solve when because you're at a transition point in someone's life. The money's coming out of their pocket and it's already the wallet's already open. And if you can, especially because this is such like a stressful time for many families.

11:08>> Um, if you can just say like, right, if you can just say, >> "We'll handle everything. Just pay us this extra fee. We'll make it easy." Uh, many people will just give you that money and then I think you would pull forward all your your cash flow to act to our customers. Awesome. Okay. Well, sounds good, Alex. >> Appreciate you, William. >> Yep. >> All right. Have a good one to >> All right.

11:33>> How did you make a product which is school better than similar products like Circle or Kajjabi which purportedly do has similar mission but they just suck compared to schools? >> I love the wording with this question. Um, [laughter] you want to take the the school job one? How did you see what others did not? >> I think the simplest way to answer it is I just care more and spent more time,

12:00>> right? But then from that comes all of these things like there's a lot of things that go into it, but it it starts with that. Like I just wanted to make the best thing and I cared about it more than anything like more than the commercial success, more than any other thing. That was the main thing I cared about. So it was the the thing I was optimizing for instead of something like revenue, instead of growth or instead of evaluation,

12:29>> profit. >> Yeah, definitely profit, [laughter] you know, because what that meant is that schools had to lose money forever basically. So how much does it mean to you, you know? >> Well, how do you care more? What observable behavior would be conducive to caring more? Like how do you show that you care? What is the doing of care? >> Jesus. I I mean I [laughter] I I would love to I'll I'll answer on I mean if you're I mean

12:57>> I mean I I just do and that's I wanted to make something really good and I knew internally the the grade I was aiming for like I the products I appreciate is like Google and Google Maps and Chrome and the MacBook Pro and the iPhone and YouTube and I wanted to make something at that level which is the highest level there is on the internet

13:26>> and I any so I when I look at school I still see flaws everywhere >> I see nothing but problems >> and I'm far from satisfied like because that is the standard and so it's just um that's what I'm trying to do that's my objective right yeah >> we're lucky that you see these problems >> yeah the person who should lead an organization should always be the person who has the highest standard. And the day that somebody has a higher standard than you, they should run the organization. And so it's a competition of who has the highest standards and then who also has the ability to to satisfy those standards. It's that combination. And so from the doingness of care, like I remember this is super early days. Sam and I were talking about school and um he was explaining the number the amount of complexity that goes into the green dot that says that someone's online to chat. Now, we naturally are like, well, yeah, they're online, but it's like, what if they're they have the tab open, but they're on a different tab? What if they have it on their phone and but they're also on their computer? How long do you wait when they switch tabs?

14:38And does them being in an active DM waiting for somebody else's response change versus if they're just posting and you're like, "Oh, wow." Levels. And so somebody who doesn't care as much would be like, "Oh, they asked it for they asked for a green dot. They want to see who's online. If the tabs open, we'll make it green." Done. But then it just won't work that well. >> And then it just becomes one of a thousand paper cuts that get you to be like, I don't know what it is. You're like, "School just works. It's just it's simple and it works." But it's like for it to actually do this thing that on the surface level seems obvious. This person's online or they're not. You start to define what does online mean?

15:15And that's where the complexity comes in. And so it's actually taking things to the hypothetical ideal and not being satisfied with just the I have the feature. So many people have tried to match school, you know, they try to create feature parity, but they create feature parity on the surface level, but not at the depth of of what school has, which is why everyone very quickly can be like, well, this is obviously not school. And that is what you would approach whatever product you're doing. It's like, sure, I have a thing on ads. It's like, but how how good is it? And that's where it's all the details. Uh, I sell trivia nights to bars and restaurants across the country. So, they'll bring us in on their slow night of the week and we will come every week and basically fill up their bar for them.

15:53>> Cool. >> Currently at 1.1 million in revenue >> like bar launch. >> Sure, if you will. >> No, man. That's what I did. That's what I did for a living for two years. >> So, currently at 1.1 million, would like to be at 10. What's stopping me right now is capacity, but I think really I just a couple hires away from from getting that. >> So, my question is really more about our upsell. Uh we do have an upsell that we present to bars right now, but it kind of sucks.

16:18>> U and that our core offers to the trivia nights themselves are LTV to CAC is about 12 to1. So I like where we are there, but our upsell I mean people turn out after like three months. >> You mean they do a couple trivia nights and then they dip or >> the the bars themselves will use it for about three months the upsell and then they'll >> What is the upsell? >> The upsell is basically a different type of trivia night. It's called music mashup. It's like a music style trivia night. So my question is

16:46>> this will be fun. >> Right now I'm trying to just improve the music mashup game to make it something better. Do I keep doing that or do I just bail on it? >> Okay. So this is this is like super applicable to a lot of people here. Okay. So let's say this is a customer journey. This will be trivia. >> All right. So where do you sell ideally

17:15>> on this on this life cycle? Where do you sell? >> Where do I sell? >> What's the best time to sell? This is our value line. >> At the bottom at the pain point, right? >> Yes. Okay. So you're delivering trivia nights, right? >> Yes. we have now provided value and we're selling here, but they're already full. So, I give the analogy of if I go to I go to y'all's restaurant, right, and I say, "Hey, I want a steak." Uh, I'm starving, right? And uh, sorry. I go to the restaurant, I say, "I'm starving." You say, "Would you like a steak?" And I say, "Sure." I eat the steak. And you guys come back over and you're like, "How was it?" I'm like, "Oh my god, it was amazing." And you're like, "Awesome. Do you want another steak?" I be like, "No, no, I'm I'm good. Like, I'm good." And they're like, "Oh, you don't like the steak?" I'm like, "No, I I like the steak. I'm but I'm good." It's like, well, then why don't you have another steak? You're like, ah, right? It gets really awkward, right? [laughter] But that's actually kind of the situation a lot of business owners are in. And so, but after I have my steak, I might have the desire to have something sweet. And so now I'm I'm full on my value vector for steak eating, but I'm empty on my value vector for dessert eating. And so then I'd be like, "Ah, you should try our apple cobbler. It's delicious." Whatever. And so what we want to figure out is sometimes the point of greatest value also on another vector becomes the point of greatest deprivation. And that's why sometimes they overlap. Often they don't. And so I think it's one of the big mistakes that people make is when they time their upsells. And so uh for I'll give you a B2B example and then I'll I'll circle back to the bar. So if I help someone get more leads, right, I have now provided value. But now that I've provided this value, they're like, "Shit, now I have to work all the leads."

18:54And so then that creates the opportunity to sell the lead nurture services or the other things that they need to go with this problem that I just created by solving their first problem. And so upsell timing is one of the big messups I think in a lot of businesses. Okay, back to the bars. So, uh, trivia nights is the the core. So, what's the what stops you from just having basically just continue to do trivia trivia nights with them? >> What do you mean? So you do a trivia night, you bring a bunch of people on Thursday, next Thursday I still want a bunch of people. Why don't I do trivia night?

19:24>> No, that that is the business model. Everything is weekly. So a bar will hire us and we will come in every week on that day at that time and bring back that crowd. So we develop regulars for them. >> Okay. And that's and that's sticky though, right? >> Yes. >> Okay. Then what's the problem with just doing more of that? >> That was my question is whether I should just focus on doing more of that. >> Yeah. >> Okay. [laughter] >> You're like, I've got this really sticky thing that we're really good at and people like it. It's like do that. >> Okay. So followup question to that would be at what point, so let's say I just the next however many years I just keep milking the trivia nights over and over again.

19:55>> At what point do I even consider bringing on an upsell? Because right now we have no upsell. >> I don't think you necessarily need one. Are you running good margins? >> Yeah, they're fine. They're 25ish%. >> Yeah. Uh tw 12% >> 25. >> Oh, 25. Okay. I was like 25 is fine. Okay. Um yeah, I think you're just in a you're in a more situation. >> Okay. like how just like how so how do you get bars right now? >> Primarily cold outbound. A lot of cold email, cold call, some inbound. About 20% of new clients come via referral.

20:24>> Cool. So, and that's I can understand that because they're not trying to refer the bar down the street because it's like it's I get it. Um so, we had some of the issues with Jim Wash. They only refer somebody who's like out of state. That's kind of theirs, right? I get it. Um, so whi how many outbound actions are you taking per day to generate your sales velocity? >> Uh, I have one sales guy full-time and he'll make about a 100 sales call cold calls per day.

20:50>> Yeah. So, I mean, that guy should probably rip like 300, but Okay, just as a baseline. Um, but I think hiring like three more guys and having all those guys do 300 a day would probably get you a bunch of sales. Um, as long because the biggest thing that I would want to solve if I'm you is how do I make sure that bars that do trivia night just keep doing trivia night with me. >> Yeah. >> If that's not a problem and they are just all continually doing that, then you have solved the hardest problem in business, which is that you have revenue retention. So, we just don't need to be fancy. We just need a shitload more of it. Cool. All right. Starting my marketing business is your experience using your books to learn. Thank you.

21:26You're welcome. How can I get more experience to sell my services to big companies? everyone start for free. And you also you also typically have to earn your way into bigger customers. And so this is why it's normal for people to consistently go on market because they realize that the work it takes to do to serve bigger clients is about the same. But the thing is is that to get the trust of bigger clients, it takes more experience and more knowhow. So saying like, I have zero experience, you know, I'm going to read your books and I'm going to start taking Amazon down as a client is super unlikely. And so you're going to want to start with smaller businesses and then work your way up.

22:06And if you don't have any experience, this is why I advocate for starting for free. Like you want to get proof before you get anything else. Like it will take you so much longer to get your first 10 paying customers if you try and get your first 10 customers to be paying. You want 10 free customers. leverage the testimonials, learnings, and examples from those 10 because the people who then buy from you don't know that those people were for free. Then you go get those next 10 using the first 10. This is leverage.

22:33>> This is Sean. >> Okay. 500K topline, 300k bottom line, science of abundance. We got five minutes from Ozie hotline. What is the thing that is limiting your growth? How can I help? >> Well, great to meet you. thing that's limiting my growth right now is I feel like the initial version of my offer when it goes out to market is not as sexy as it possibly could be. Okay. >> I have a spiritual coaching practice. >> Okay. >> Often times people don't really hook into that really quickly because it's like too ethereal.

23:00>> Looking to make it systematized, clear to the point to where it um >> just just to where they they understand what they're getting. they understand the value they get out of it and then spinning off a very specific offer that allows for exponential growth. >> What do they what do they get? >> So currently what they get >> not the features the outcome >> um the outcome is is a centerness. It's it's a truth centeredness that um is removing the patterns that they've had in their life. The childhood trauma you know cycles that they've consistently been in. um that's what they get like they they actually truly understand a level of awareness to where the consciousness that they have been taught into they break those cycles and they walk through the door um to understand the depth of themselves.

23:43>> So it's behavior change. >> True. Yeah. >> Okay. Got it. >> Thank you. Great. [laughter] >> Great. So you you do bad stuff, stop doing bad stuff. You want to do good stuff. Start doing more good stuff. That's fantastic. Okay. So I think uh you know [laughter] >> I think I think I I would just I think I think you probably just need to change vocabulary because even the name of the of the of the company science of abundance and then you said that we teach you have a spirit spiritualist I think is what you said

24:09>> centerness >> center yeah and centerness again it's like we have a big issue of definition of terms and so I would say I'm an objectivist overall in terms of how I see the world which is why I think people enjoy I think why I get a disproportionate amount of views and things like that on my content is because um I try to define terms and so I think that right now you might have some people that you are think about like this. You're rolling roulette in your marketing and hoping that people who have heard the word centeredness have had a positive experience with that word and as a result make that association with you. There's a very small percentage of people who have done that. The vast majority are confused and have no idea. All right. And so we want to market or in our language use the lowest common denominator language so that the maximum number of people can comprehend the message and ultimately understand it. And if they understand it and we're clear, we we increase the likelihood they they comply with our request. They do what we want them to do.

25:02>> Right. >> Okay. >> And so fundamentally right now, how are you advertising? >> Uh Meta predominantly I have a social channel. It's about 400,000 followers currently. Um and so they come in through that and >> kind of drop in. >> Okay. And what do you sell like price point? >> Uh price point ranges um any anywhere between like low-end ticket is 97. It goes all the way up to $2,000. >> Okay. What's the sales process?

25:28>> Uh currently the sales process is literally all online. So there's there's no >> checkout. Just check out. >> All check out. But you go uh like organic to webinar to checkout. >> Organic to webinar to checkout. Yeah. And there's some paid ads that run around it. And then in the in the webinar, you give them all these different options. >> Uh I give them one option. Okay. >> Follow them through. So they graduate up into the different levels. >> Oh, so they start at like a 97 and then they work their way up.

25:55>> Yeah. >> Heard. Do you have any sales? >> Yeah, we have sales. Yeah, we're doing >> No, sorry. I I used see definition terms. Do you have sales? No, this ser like dude, this is a perfect example. Do you have sales people who call the people who buy the $97 thing to sell the expensive thing? >> No, I don't. >> Okay. So, I mean, like, well, thing number one, uh, is if you just had somebody who called all the $97 people and then sold them a $3,000 thing, you would make significantly more.

26:23>> Amazing. Okay. Yeah. Okay. Love it. >> And then I would begin the call erasing almost all the language that you're using and saying, "What are the things that you're doing in your life that you don't want to you don't want to do anymore? And what are the things that you wish you were doing that you're not?" >> Okay? >> And then say like, "The point of this call is to increase the likelihood that you do the things that you want to do and stop doing the things you don't want to do." And the good news is we have a fivestep process that we've done this and we have 80% success rate. >> Correct. >> So if that sounds like a bet that you want to make, we'd love to help you out. How's that sound?

26:49>> Fair. I love it. >> Right. Because I think I'll bet you a lot of what you're doing is you're using a lot of jargon and a lot of like featuring and no one knows what that means, nor do they really care. Like they just want the tooth pulled out. They don't care what drill you use. They just want the pain to go away. >> So I would just focus on you're doing stuff you don't want to do, you're not doing stuff you do want to do, and we will help you bridge that gap. >> Fair. [clears throat] Okay. I'll give you I'll give you I'll give you one crazy thing. Um and Alex's kind of description around using language is really important because if they a confused mind stalls, right? And I I will tell you personal uh vulnerability.

27:24My therapist stopped calling herself a therapist and started calling herself a business coach for entrepreneurs. And literally her business her business took off. She went from she tripled her fees in tw 12 months just by switching what she did because people are not there's a stigma around it. The average kind of bullheaded entrepreneur is like I don't need a therapist. >> Why'd you point at me? >> N me bullheaded the average bullheaded entrepreneur say bullheaded entrepreneur. Yeah.

27:52>> So so uh I just want to reemphasize the that Alex is right on with the kind of using the right language especially if there's a behavior bent to it. Because when you have a behavior brand to it, two things happen. One, it puts some accountability on them to actually change behavior and it puts some accountability on you to deliver the thing that will help them change behavior. So you get what you promised. >> Okay, that makes sense. >> And so once you talk in those terms, then the offer will actually become one like for everybody. Clarity always like clarity beats like if no one can even comprehend the offer like the biggest thing that you can do to increase your conversion rates across funnels across ads across emails is is is just describing things as you can observe them objectively. So I think about I translate all my materials through like a court filter. So if you're in the court and you say so and so was frustrated they would say objection your honor because that's not a fact that's an opinion. What they would say is that when that person came in the door they spoke at a higher volume. They could say that her face was visibly red. They could say that she was sweating. They could say that she threw something at somebody. These are all things that are observable that no one can question.

28:55When we start talking in terms of the amorphice, it becomes really hard to understand. And so I would use all of the observable in all of my marketing and sales so that people know what they're going to expect far more accurately. It'll feel like a superpower. It converts like crazy. >> Let me ask you this question. I love that. And I get a lot more clear. >> Okay. If if if I were able if I were doing a challenge to get people to come through the door faster in like a 60-day transformational window, >> dude,

29:20>> tell me what you think of this because I framed it off of some of the things that I've been picking up for me lately. >> Yeah. >> $500 bet on yourself. >> Yep. Win your money back. First offer inside of the attraction offers inside of money models. And the course, by the way, for everybody who's watching, it comes out tomorrow for you guys. It's free. All right, relax. It's free for everybody. But the but [laughter] so when your Yeah. The win your money back offer I think would smoke for this for this uh for for for your type of business because it's all behavior change related.

29:46>> Exactly. And so what I'm doing is that I have a I have a set of things that you do every single day. You submit that into the community running it on school. Give you 50% of your money back if you actually get through 85% of it. And then five people would be voted by the community to where I'm going to give $20,000 to those five people at the end who the community basically uplifts. And then of those five people, they can be nominated to become coaches inside the community. So I build an entire flywheel. How does that work? >> Uh I I like the Yeah. No, I think I think there is a little too much.

30:14There's three things I'd ra like I if I were you, I would do I would do the following. Do the win your money back. Instead of 50%, make it 100%. The the the 100% money back is a store credit, not cash. Okay, >> that store credit then rolls into rollover upsell into a year with you. >> Okay, so $500. Great. A year with me is 5,000. Great. We're take the 500, roll it towards 5,000. Fantastic. Love this for us. Okay. Um and then that's that's front end to backend conversion. Now, what are the things that are required for them to quote earn their own money back or win their money back? So, thing one, I like the the habits and behaviors. That's good. That's what gets them results. The other half of the things that you want to do and win your money back is get them to promote. All right? And so that means now depends on the nature of the service and how people feel about this. So you'll know this part better than me, but I would say at the very minimum in order to get the money back or win the store credit, you have to leave me a testimonial. Okay, number one. Uh number two, uh you got to make a public post before and after. Uh number three, you got to turn in your, you know, turn in your befores and your after stats. So you can either make a public I'm giving you different variations of this. So a more watered down version of like I don't want to post it. It's fine. Then you got to turn in before and afters and I want them in these formats and I want them on these multiple sites. So I want you to do it on trust advisor. I want you to do it on Google. I want you to do it on Yelp. I want you like I want you to do it in this Reddit forum, right? Like these are the four places I want you to post this testimonial. Um and that is required in addition to the things you have to do to get the results. So the things that someone does are activation related and advertising related. Those are the earn your money back components. And if anyone's like, "Wow, that was a little bit more nuance." That's why I wrote a book about it. Um, so I would do it from that perspective. And by doing it that way, if you want to get super saiyan on it, which I would recommend, why not?

32:02Um, I always included satisfaction uh guarantee. So, it's basically a double guarantee. So, it's like not only uh can you earn your money back if you for any reason feel like you got $499 of value when I charge you 500 at any point, you know, 6 hours or 6 weeks into this thing, you can ask for your money back. Now, for me personally, I did I I almost never had anyone ask for the money back from a satisfaction perspective because the winter money back frame is so strong that like, you know, I mean, and I only pulled that out if I needed to, you know, close a deal or something like that,

32:31>> right? >> Cool. >> You like that? >> What about this? Yeah, I love that. What about this $20,000 giveaway thing? No. Too much. >> I just don't think you need to. >> You don't need to. >> Yeah, you don't need it. >> Okay. >> So, you're you're trying to combine you're basically trying to combine three different uh attraction mechanisms. And again, clarity >> like down the middle. Right down the middle. fast ball like if it's if it's a good pitch they'll swing. >> Okay, >> cool. >> Perfect. Thank you, man. >> Thank you, dude. Appreciate you. Thanks for donating the books.

32:54>> Done a bit over 1 million in revenue on Etsy. Cool. Uh started at 16 years old. Great. >> Um I have a free community 320 members. What should I offer in paid community? Um I'm doing my best to give tons of value for free, but wanting to uh make a paid one worth it. Um, so I think, you know, like this is me taking money out of my own pocket right now, but I think it would still benefit you long term. I think that it might be beneficial for you if you have a demonstrated way of providing value to just make that community a free trial.

33:27So like obvious like you know, I think that that might be the best the best next step for you. Like if you have 320 members, then it's probably engaged. Just flip it to a free trial and then that way your delivery and your marketing can be basically one and the same. Uh kind of on a go forward basis. You could obviously start a second community. It just takes more work to manage two communities. And I would say the big risk is that the free community like kind of dies when you take out all the best people and put them in the paid community. Is something that we've seen.

33:54Again, this is me not serving myself here because obviously I'm incentivized to tell you to open more communities, but my reputation matters more to me. So um that's probably what that's probably what I would end up doing >> when someone starts their business and they are like excited and hitting all the major milestones but then the market changes offers dies out and they lose motivation new things coming AI and all that when your offer ran its course and you are ready for a uh you're ready for a comeback what should you focus on first

34:24>> so I'm going to differ from like the traditional kind of direct response world which is like the concept of an offer dying out like that's just because like the product sucked. >> It's like I sold everyone I could dupe into buying and now I have to dupe them again with something new. >> Kind of shitty. >> So ideally we make something that people want to buy and then if they wanted to buy it then it means they wanted the thing and so we just need to deliver the thing we originally promised,

34:54>> right? >> So what do you do? you actually make sure that you do a good job and that's much harder it's easier to say than it is to do >> right and in the followup like with the AI and all that getting into it so it's like if I I get into the two thought processes like inculcate AI to what you're already doing and see how it can save the manual uh effort or is like making your whole business AI coach cultified kind of that

35:21>> is sorry what's the question is it like do I use AI or do I >> so it's like yeah inculcating AI to an already exist existing business and all or is it like wrap it up what is already there like and then >> well I think you're describing two opportunities that would both work. >> So it's like can I apply AI to a plumbing business and make the plumbing business make more money? Yes. Could I use AI inside of a coaching business to make the coaching business make more money? Yes. Do I want my entire business to be AI if you're really good at product and have a really amazing engineering team? Maybe. Um, I mean, the thing that's going to put like AI will put more AI businesses out of business than AI will put normal businesses out of business,

36:01>> right? You're like, I'm building >> Yeah. >> sales AI, it's like, okay, well, you sure open AI can't do it in like six months, >> right? Whereas plumbing, it's like, we got a little more time. >> Hi, my name is Katya. Um, I have a designer clothing line for women. It's resort wear. So, uh, swimsuits, cover-ups, beach dresses. We sell B2B, which is wholesale, and we also do B TOC, which is ecom.

36:31>> Okay. >> Um, we do 4 and a.5 million a year. I would like to be at 100. >> What percentage uh what percent is is B2B versus B TOC? >> About 50/50 right now. >> Hm. Okay. And who's the face of the brand? Are you the face of the brand or how are you how are you doing? Do you see? Our brand doesn't have a face. I'm the designer, but I'm really shy, so I don't really put myself out there and ads and stuff like that. >> So, who's doing who's who's in the ads?

36:56>> Um, models. Yeah, we have models and customers that do >> just UGC stuff. >> Yeah. >> Okay. [snorts] >> Yeah. So, um my question is, do I keep the current line which is um more luxury, more expensive, and kind of scale it that way? I would like to be at 100 in the next 10 years maybe. So, I'm not super aggressive. Yeah. I always like hear it. I'm like, "All right, how long's she going to get?" You know, that's like the next 10 minutes. Yeah.

37:21>> Or um lower the price and have a more broad avatar. >> I mean, if you have a premium brand, that's what everybody wants. And so, if you're selling, do you have good margins? >> Yeah. 20%. >> Net. >> Yeah. >> Okay. Yeah. I I don't think you should lower your price. >> Um it's a I think there's there's demand. I mean the thing is is like a lot of women are willing to pay. How much is the bathing suit

37:48>> right now? 200 up to 400. >> Okay. So yeah, it's premium. >> Yeah, >> man. How are the is is the is the main cost cost to acquire customers? Is that the main cost in the business? >> I'm sorry. >> Is the main cost of acquisition for your business? >> Um well >> because I mean if you're selling $200 bikinis I'm like it's g I mean it can't cost you more. I mean, how much does it cost you for a bikini? >> Maybe 40 30 to 40 for the $400 bikini.

38:15>> Yeah. So, you're running 90% gross margins, >> right? >> Yeah. Okay. So, is the majority of the cost in marketing? >> Yeah. For the ecom. Yeah. >> Yeah. So, the the big thing that we have to solve for in the business long term, like if you want to get to 100 million, you have to build a brand. And the way to build the brand is going to be on customers coming back. So, do you have any idea how many bikinis or other pieces that people buy once they make their first purchase?

38:39Um, so we have about 30% of people that come back and um, yeah, the average spend per order is about $350. >> Yeah. So all if I were to buy the company today, I would put all my effort in taking that 30 and making it 65. >> Mhm. >> Is how do I get people to like how do I get two out of three people to buy to come back? Because there's a number of things that that happen there. So it's not just that

39:04>> those customers are worth more. is that if you go from 30 to 65, also the amount of customers that are going to be bringing other people and referring other customers, which is going to be harder to attribute, but you'll feel it in all the free sales that you'll get because the product's getting better. Fundamentally, that's what begins the brand loop. >> And so that's honestly that's where like all of my obsession would go is because that's what that's going to be the unlock. Like the reason that big like big companies like the the Gym Sharks of the world, you know, like the the big, you know, apparel brands that you know of can continue to scale is because as you get into colder and colder market, you have to have an equally strong force that is fighting to keep your business alive. And that's where the brand comes in and repurchases from the base is kind of what allows that to continue to happen. And if it costs you more to get customers, but then those customers refer other customers, it it lowers your overall blended CAC and allows you to mass like expand to a much larger degree. And so that's why it's like it sounds like a very small metric, but is it is the thing to solve for

40:00>> um within the business that you're currently in. And so I mean you are in I mean assuming you don't have supply chain issues, you're pretty much in just a direct marketing business. Obviously if you're B2B side, that'll scale up. The thing is is as you continue to reinvest in the brand and and demand continues to rise for it, you'll be able to sell into each of these B2B side even easier because you'll have more leverage because you're like, I'm going to drive foot traffic because people are going to come for my bikinis or my, you know, my my resort wear. >> Yeah. >> So, you're like, okay, well, how do I build a brand?

40:27>> Does that mean that I have to put myself out there more? >> No, you don't. No, no, no, no, no. You don't have to. No. >> Stronger brand. Yeah. >> Sorry. >> How do you make a stronger brand? >> It's going to be the people you choose to associate with. Yeah. So, it doesn't have to be you, but like if you have five, 10 faces uh that are influencers that that and here's where it gets a little bit more nuanced is you don't want just generic hot chick number six to be the person who's who's representing the brand. >> Ideally, you want people who have and you've probably seen this true followings. And the reason that people have true followings is because they have provided I mean they they truly have influence not just like she has a fat butt, you know what I mean? And then they post pictures of it. And so you want somebody who has a personality behind the body uh because they'll actually have a much more more loyal fan base, but also because it'll it'll say so much about the brands that they're choosing to associate with because the customer is going to know them, not you.

41:17>> And so by them knowing that person, they associate all the values they ascribe with that person to the brand. So, it's like if you have the options between, you know, uh a girl that's, you know, probably more higherend, more Aspen Resort, if you will, uh uh and somebody who's more, you know, Carnival Cruise, if you want the the the the luxury buyer, then you want to associate with the luxury girls. >> Yeah. >> Does that make sense? Because they all follow those girls

41:44>> for sure. >> And that way, you won't have all the complaints that are going to come in because if you go on Carnival Cruise and you put a $200 bikini, they're going to say that you should put in get put in jail, right? But if you do it at Aspen, they'll be like, "Oh my god, it's half off." Uh, and so Pick Your Price. So, this is the visual for it, by the way, which looks nice and cool. I don't know if they can zoom in at all, but that's the visual for the chapter for Pick Your Price. This is in the Lost Chapters book, by the way. Uh, which is free cuz um I like you guys.

42:10Sorry. It's free for the people showed up live. Sorry. Um, it's $29, which we'll make available for other people, but everybody who showed up live uh will get one of these bad boys. All right, so let's read it. June 20th, Austin, Texas. I could see the Texas heat bouncing off the hood of the car as we drove. The roads were empty, not a car in sight. It was like driving through a ghost town, except the town was our home. It was right in the thick of CO. As Leila and I were driving back from the pharmacy for some goods. We saw a young girl on the side of the road frantically waving a sign.

42:42Free car wash is what it had on it. Intrigued, I said, I wonder what the deal is. There's got to be something to it. Want to go check it out? So Ila obliged my whim as uh as she'd done many times in the past. She just knew how much I love going through sales processes cuz I'm a weirdo. So I turned the wheel of the car around toward the girl um and headed up the ramp uh next to her. So around the bend, we rolled our car into the main car wash. As we pulled up, a man stood out uh from his seat in the shade and we came up to a stop and rolled down the window. He pointed to a pricing chart and exhaled his spiel, which it became clear he'd already done hundreds of times already that day.

43:19The standard, this is what he said, the standard car wash is 100% free, but we're accepting donations on behalf of the staff to help the guys feed their families and get through this. We would all be super appreciative. We accept cash, credit, and Venmo. And then he shut up and said nothing. I got the hint and took out a $20 bill. Looking at the pricing board, it was more expensive than mo than the most expensive automated watch they charge for, even during normal conditions. He grabbed the 20, gave me a ticket, and waved me on. So, I'm always pro business and I always will be. I felt great about helping a group of working men. And that being said, it had a very different feel than any normal process. Normally, we buy things and don't think much past the transaction. In this instance, my purchase was funding something great, the American dream. As we went through the car wash line, I couldn't shut up about it. I was like, "How great was that? Goodwill, lots of new business, cash flow on a high margin service.

44:10Brilliant. I'm definitely figuring out a version of this for gyms." And in the middle of COVID, our gyms began using this scripting in their sales process. And it worked wonderfully. People who couldn't normally close were able to get an average ticket of about $99, which is more than the average low barrier offer for like a boot camp or something like that. It was splendid. I'll give you the details about how to do it and how you can apply this offer like uh like this to attract new customers. All right, so that's the that was the story behind this. So here's the description. You market the promotional offer as free.

44:40When the person gets to the checkout, you give them an offer to pick their own price. You'll explain the benefits of investing more equating to higher investment in their own results. If if they're after results, the more they pay, the more they'll pay attention. So, here's some examples. So, if you had a lemonade stand, you would offer a free lemonade cup. The upsell is, but you can choose to pay something to help the families of the employees. As an additional bonus, the crew offered to make a cup of hands squeeze lemonade for anyone who pays or donates over $5. And we'll give you a picture to take home with you for any donation above $25 and give you three months of shipments for anything over 99 plus.

45:21Maybe this starts to sound familiar. Car wash example. So, it was a free machine, car wash, and soap. That's the free one. The upsell is, but you can choose to pay something to help the families of the employees. As an additional bonus, the crew offered to wax anyone's cars who who donates over $30 and handbuff anyone who goes over 67 and do the entire interior of the car for anything over 99. You guys catching on how this works for whatever business you have. Here's weight loss. You'd offer a free 21-day weight loss program. The upsell would be pick your price, but most people pay $99. We give this just to the coaches and their families. If you pick $99, we'll also give you an extra one-on-one call. If you pay over $1.99, we'll also provide our entire supplement handbook.

46:02If you pay $499, we'll guarantee you'll lose 10 pounds. And if you don't, we'll let you use that credit towards any service we have. That's an example of another one. So, here's another another uh example of a pick your price. So, this is for a dentist. The offer would be a free dental cleaning. The upsell, pick whatever you want to pay. Most people pay 99. Notice the way the phrasing works. Most people pay 99, which also gets them an extra XYZ or $2.99 for an extra VW. Uh, if you had a coaching offer, it'd be like, uh, the offer is free coaching and or men mentorship. The upsell, pick your price.

46:34If you pay $2.99, you will get the course that goes with it. At 997, you get six group calls on top of this. The zero price comes only with access to the group. All right. So, that's that's the that's the concept. Now, I'll give you some of the details that make this work. Okay. To further incentivize them paying, you offer bonuses for three levels of payment. So, think small, medium, large. to encourage them to pay something more than zero. Ultimately, if someone doesn't want to pay for the first thing, you've got to give them the basic level for free. That being said, you can and should still upsell them on other products and services during their time with you. This is similar to a limited free, which is a different thing. Um, except instead of either or, you have, and limited free is what I called it in an earlier version, it became the decoy offer. But I I digress.

47:20Uh, you have a sliding scale with no predetermined amounts, only rungs. All right. So, this also has no max. People can pay whatever they want. They can donate as much as they want. Now, you want to make sure that at the beginning of the sale, you explain that you do have a pick your price setup and that the staff is offering some different bonuses. The staff is offering some different bonuses at different levels. Uh, but they're not obligated to pay anything. So, it'll seem like they're paying the employees, not the business, which for some reason people feel way better about, even though most businesses pay their employees. Um, and so explaining that you're accepting donations and/or allowing people to pick their own price will avoid any awkwardness at the end. You also get the goodwill of the prospect being upfront.

47:58Now, when selling with that preframe though, you can and should hit the prospect hard with confrontational questions to ensure they'll be a good long-term candidate. This is especially if you sell like service, like heavier services. So, if you feel as though they have no intention of staying, just weed them out. All right? So, be genuine about this. This should feel a little bit more like an interview. So, the types of clients, again, this is shifting more from, you know, transactional like the car wash story to a more transa uh more relational type sale that you're going to be doing on ongoing client work. Okay. Uh, where were we? Okay. Um, this should feel like an interview. So, the types of clients you want are the ones who willingly pay and are appreciative. You want people who who think with reciprocity. So, this is the sort of mini test. This is like a little mini test for that. So, ask real questions to gauge commitment level for their own good and yours. So, examples.

48:43So, are you willing to change the way you do X? Are you willing to stop doing why? What if life gets busy? Will you stop showing up? Will you attend to all of these appointments? So, make sure the thing that you're giving away for free has low operational cost so you can still give it to people without burning out your staff. All right? So, save the higher operational cost stuff uh for the people who choose to pay. After you get to the end of the pitch, you'll outline what they get each level and then say, and this is key, we accept Visa, Mastercard, or XYZ payment. Which would you prefer to use? Then shut up.

49:15They will then take out their card and tell you the level they want. It's hard for people to say no because we obviously attract with free and we deliver free if they so choose that. But we say, hey, many people do these other things instead. And as a result, if you want, you can just get all these other benefits as well. And when someone's when it's framed that way where it's like, hey, the employees are chipping in and doing this extra work, which is how businesses work in general. For whatever reason, consumers feel way better about paying employees than a business, even though the business pays the employees, whatever. uh that framing allows many people then feel like oh I will I'll I'll do the most expensive thing we're benefiting the employees which is exactly what business does to begin with now summary points these offers can generate a lot of goodwill when done properly people feel good when they buy them because this is it's not a demand it's a choice all right so it pulls on people's generosity or reciprocity people feel 100% in control of their own destiny and you can play up the fact that you're helping folks for freight sets up a relation based on goodwill and sets the stage for future upsells this is really key. It sets the stage for future upsells. Again, a money model is not just one of these, it's a series of offers. All right? And on top of that, the conversion rate is super high. Um, so although the average ticket is typically lower with this type of play, um, it works well in low trust environments because it has so much goodwill loaded into it. So, this is one of the easier kind of free upsells or free attraction offers that exist. All right, so pro tip. What did I refer my pro tip here? Paid version, pick your price. Okay. Oh, actually, I remember this. Yeah, so I saw an art gallery use this as well. Um, and this is how they did it. So, every every piece of art had a price range. And so, they said people could choose how much they wanted to support the artist. So, for example, they said this painting is between$149 and $2.99. So, I asked the owner how it worked and she told me that most people pay more than the halfway point because they don't want to seem cheap or unsupportive. So, this this version is kind of like half Goodwill, half capitalism. Um, so I like I kind of like it. It's just kind of a permutation of it. But give it a try if that type of thing fits your business. And if you're like, why did you not include that in the money models bug? So the some of the plays that are in here are like there's just it they they're more niche, I think, in some instances. So it didn't match 100% of businesses. I had a ve I have a very high standard for I would say the $100 million cannon. Um, and so it has to be able to apply to like every single business. Has to be easy to understand. It has to be the most powerful one. This one has a little bit less cash up front than the other attraction offers that I put in here.

51:35Um, but the id say the main benefit of this particular offer mechanism is that it's really easy to sell. It's like very easy to sell. So if you're somebody who really struggles with sales, especially in a low trust environment, sometimes even in an online environment where you like don't have as big of a brand, it's a great like what I would consider like intro offer. Um, and so that's uh that's just one of 24 chapters inside of uh inside of the lost chapter. So hopefully you guys dug that. And that was uh whenever you're in a commoditized business um you're not obviously the goal is not to be in one but it's like you either have to win on risk as in you are less risky which is what a brand premium does is that like people believe that you're they're more likely to get the good result because of your reputation. That's the inverse of that.

52:15You know you can put covenants and guarantees if you don't have a brand but long term it's reputation. The next one is speed. Like if they if you can I mean if you could get the horses healed faster than somebody else that's valuable right? or if you could see the horse faster than somebody else, that's valuable. Um, and then, uh, ease, right? Like, how do I make it less friction for you so that you can just drop the keys off, you know, functionally, um, and not have to worry about anything else.

52:42>> Yeah. But that's like, and we just like whenever we're trying to work with a business that's like relatively commoditized, happens a lot in home services, um, is we just try and figure out which of those three vectors of value we can we feel like that that business can win on. Sometimes it's speed, sometimes it's risk, like they never have defects. Like it depends on the business and we just we that's part of the discovery. I know yours was speed because you're faster than your competitors. So it's like that makes sense. >> Any kind of home service, the big issue is commoditization, right? Like there's huge demand for it. There's not a lot of supply and so people are going to make money without really a lot of scale. Um and so then you have bad players who underpric

53:16>> because and then basically it's a race to the bottom which sucks, right? And so with on time on budget, the big concerns that every every consumer or every homeowner has is is this going to be is this going to be on time? Is it going to be on budget? Right? Um and so with an on bud on time on budget guarantee, what we do is we say so you already raised your prices, but I would say like you could probably get away with raising them even more. But this is my process of doing this is like we're going to bump price by 20%.

53:48And then this gives you all the leverage you need in the conversation. So if I'm talking to a homeowner, I say, "Listen," they're like, "Well, I've got, you know, two other quotes for less." It's like, "Oh, yeah. Um, did they guarantee time and budget?" No one will. Uh, it's like, "Oh, yeah. Well, then I can do it for a dollar as long as I don't have to guarantee time and budget." And then they're like, "Oh." And you're like, "Right. It's complete make believe with me. When you pay this, you know that it will be done by this time and it will be done under this number. period. And if it's not, I'll give you my profit, which I run 20% margins. I'll give you 20% back,

54:23>> right? And we just bump it by 20% and you capture it on everyone else and you're probably not going to do it. Now, what makes this now here's what makes it a little even sexier is that this guarantee is contingent on one very important thing, which is that they don't change their mind, >> which of course they're going to [ __ ] change their mind. >> Obviously, of course. And so, and so, so this allows you to win every bid. >> Mhm. >> But then you say, "Hey, to be clear, I can guarantee this as long as you're good that this is what we're doing." Yeah. >> But then they're like, "Actually, I kind of want the other turf or I want that edge. Can you cover that area over there?" Like, absolutely can.

54:53>> I can't stick with this anymore, but like I'm still going to try and hit that goal, but I just want to make sure that you're clear. Like, I can't like you just change the terms. >> Yeah. >> And everyone's like, "Yeah, I want the extra." Great. So that's the kind of like no change contingency which protects you >> and then in the in the rare circumstance where you some they don't change their mind and you somehow go over >> you just give back the price raise that we just did

55:19>> right and so you keep what you were going to make anyways and so this covers you on both sides. How does that feel? >> I love that. And I think our client love that. >> Lovely. And you don't need to be limited by this. You can you can make it >> more than that. >> Yeah. Well, okay. The second thing is that so maintenance plan. So, kind of like I was saying with Ly earlier on the horse side, it works the same way. I I try and do this almost every service business I can is okay um they're like turf is going to get damaged. It'll get you know the edges will fray. You you know this [ __ ] better than I do. You need something right that's going to happen. So, I I like having as as little as like the lowest price possible if I want them to say yes because what I want them to do is just buy a sales consult,

56:05>> right? So, I'm going to come back a year from now and we'll cover repairs up to twice this number. Um, and that's what most people do. You want to just do that twice. >> So, let's say it's 200 bucks a year. We'll cover up to $500 a year in repairs. >> We make up the prices on repairs anyway, so whatever, right? So, it's like, I'll give you twice the number uh on the repair cost. Anything under 500 bucks, we'll just handle um and we'll come out and just keep it. It's like it'll double like the I'm sure you'll have some stats, but it's like, you know, if you're buying the turf, it'll it'll double the duration of it. And if you plan on selling the house in the future, the last thing you want to do is have to redo the turf for somebody else to enjoy.

56:41>> That's what I would say. That's how I pitch it. It's like, well, [ __ ] It's like, yeah. So, once you do it, what people don't realize is if you're going to sell the house, then it's going to look like [ __ ] because it's just wear and tear. we do this, it'll add to your home value rather than being something you have to replace later. >> Gotcha. >> And you get dinged for it. Um, so the maintenance plan and so here's the here's my favorite way of doing it, which Ly if it makes sense for you, you can try and adopt this, but I like the way you outlined yours. But the way I would do it is like um you could have it be $500 a year, right?

57:14Mhm. >> And then you say, "Or you can just leave me a fivestar review and I'll throw it in >> at the same point." >> So it's like it's 500 bucks a year. It's what most people do. Um and we're running a deal right now where you leave us a fivestar. Um we'll comp it >> for the first year. >> Yeah.

57:43Now, does does the um does the same person who does the work do the kind of like the the walk through, you know, like the it's all done, let's wrap up? >> No. The person who makes the sale Yeah. >> is so currently how it's set up uh is the saleserson is the project manager shows face like I'm still here with you with through this process and does a ton of walk through with the client.

58:07>> Okay. So that's good. They're not the laborers, per se, right? So here's here's what's magic. >> So when you have that when that guy has that conversation, says, "Hey, um you know, we have a maintenance plan for $500 a year." All the stuff I just said. Um and or you know, and right now ownership's running a special where if you just leave us a review, um it'll be free. And if you do leave the review, the guys get a little spiff and you know, it mean a lot to them. If if he says it about the guys and he's not the owner,

58:39>> it crushes because it's like as long as if you can Javier and Jose did an awesome job like they get a little spiff. It means a lot to them and their families and like you'll get 500 bucks for me. >> Okay. >> And everybody [clears throat] does it. >> Gotcha. >> When I think about career pathing um I think about two columns that are kind of in parallel. So you've got title perks. Sorry that's a K perks and then money, right? And so let's say that we've got hm

59:07>> I just watched your video on this on the plane here. >> Oh, did you? Okay. Well, then you'll be bored by it. But u So does it matter what role you have? Let's say you've got a um you know an an editor, right? So uh you've got an editor and so when they come in they're going to come in as a junior editor and then over here let's say that they're getting $10 an hour. I'm just making this up, right? $10 an hour and then they've got $11 an hour, $12 an hour. And so we're going to start at junior.

59:38That's the first career path thing. You're a junior editor and you're making $10 a year. Um after you hitting your first 30 days, we're going to say, "Awesome. Uh we're going to move you from $10 to $11." So that's going to be move number one after day 30 or after you do XYZ. Now that you're at $11, uh, for another, you know, you passing my next milestone, you're going to get you're going to be promoted from junior editor to editor.

1:00:08And editors don't have to do one element that junior editors have to do, which is like they don't have to clean the lenses on the cameras. I'm making it up. Um from here we say okay uh [clears throat] editors then uh our third move is going to be like now you've done over a 100red videos and it's now 6 months in you can now be an editor you get another pay bump from there we say okay you've done that for another six months and now you can become a senior editor and if you do that throughout multiple steps in the career so it's like that's uh like in the sales role right you have setters and you so it's like junior setter, setter, senior setter and then you become a junior closer, closer, senior closer and then you have uh so like you have all these paths. So if you have six like that with the pay bumps, you have 12 career progressions. And so this keeps people invested much longer.

1:01:01And so we've seen this done really really well in med spas and also in like nail salons. Like it sounds random, but the same idea. Um, and so you might be a, you know, call it a junior level one esthetician and then a level one esthetician and then a senior level one esthetician and then a uh junior level two esthetician, level two esthetician, senior level two and then junior level three, level three, senior level three. And so it's like gives huge progressions. And then with each one of those they had to get they had to pass these many certifications that were purely made in house that allowed them to do more expensive and complex procedures but that allowed them to increase their hourly billables. And so by doing that they just always felt like they were learning and they always felt like they were making progress. And so we saw this we almost bought this we put an offer on this nail salon chain that I really liked. See I do nails I can do it all. Uh, and um, but what was genius about this lady's model was that she took like the average stick in the industry was like 6 months for a nail esthetician and she was keeping for like four years. And she was taking girls who had no high school diploma and they're making 70,000 a year which is huge for the markets that she was in. And so like that's what that's why they just stayed with her forever. And she would just like literally she would teach them how to do like gels and then she taught them how to do fancy nails and then like the little bed. I don't I she had a whole system around it. But that same process applies to sales people, editors, anything that's a repeated role. You don't have to have a thousand of these.

1:02:27If you get 10 good ones in good markets, what will be like the step that's between where you're at now? So, let's assume that you take these steps that we went through and you scale up to a number that you're like, "This is really good for this facility. I don't want to like build out more or anything like that." Once we get to that point, the next step is actually doing what we call scale zero, which is how do we get you to do zero in the business and then have the business still continue to operate at the same or better than it was with you operating it. Once that happens, then we have the duplicable model because what happens most of the time is business owner starts to make money with and they're working the business and then think okay this is working therefore I will take this cash that I'm making open my next location. Then they take all their time and go to the next location.

1:03:14The profit here, let's say the let's say the revenue drops by 20%. And the margins 25%. All of a sudden they went from, you know, making a lot of money to making almost nothing. But now they doubled their overhead because they've got this one and this one's not growing as fast as the other one did because they put years and years of sweat effort over here and this is brand new. It's new staff. You don't have the same word of mouth and all of a sudden now you're working twice as much and making less money. That's what happens most times and that's what sucks. So from a belief perspective, that's like the big mistake to avoid is like expansion should happen when you're making more money than you know what to do with and you have more time on your hands than you know what to do with.

1:03:48That's when you expand. Not when you're like, I'm not making enough from this facility. And this totally applies to you. I'm not making enough from this facility, so I'm going to open another one. That is like that is how so many people think about it. And I only say I know that because I did it. >> Alex, this is your last question. >> Oh, I'm fine. Okay. Hey, I get to be last. Uh my my name is >> It's got to be a good one. >> I I think it's a good one. It's my number one constraint for sure. Without a doubt. Um I have really good retention. It's like 86%. It's restaurant business. I'm sorry.

1:04:19>> Restaurant management software for restaurants. And I'm launching a POS system with payments and I'm launching accounting like as we speak. So I don't have that just the inventory and all the backend stuff that they don't have to do. The systems that everybody hates to do. But we solve the data problem for restaurants and we make our clients super successful. >> Cool. >> I can get leads. I get a 30% close with about a 1% show up rate. >> Wait, what? >> I can't get people I can't get busy restaurant tours where people are constantly selling them. They'll they'll be on their couch. They'll opt in uh and they will not they'll even pay. I have a thing where they can pay for a lesson on board. They don't show up for that.

1:04:57Sometimes I'll have somebody no show for six or seven calls before they finally show up just through our diligence. But my show where you getting customers from >> terrible. So I have an SLO um which is probably the top way now. Used to be that we do speeches at a food show. >> Being a selfquidating >> selfquidating offer. I sell on the front end. I sell these restaurant training manuals. >> Okay. But what media channel? >> Uh Meta. >> Okay. So you're running ads >> to a low ticket offer. Y

1:05:22>> which is these the manual thing, right? Which is what price point? >> $99. Okay. So, you run ads through $99 thing and then there's a thing. >> There's there you can upsell a hospitality video and then I have a a training that's actually a mastery thing that actually is an onboarding for my software >> um if they do it. So, getting them just to show up for that training is really difficult. I've hired a person that's their only job is to get them to show up >> and then um getting them to show up for demos like they just no show constantly even with Yeah. Jacob went over some of the stuff too. I just wanted to know your take.

1:05:55>> I mean, all the tactical stuff you went over is the that's like the BB's, but I'm thinking like something doesn't make sense. Like nothing has a 1% char rate. Like 1% is so small. I'm so >> have like 100 people sign up and then one will show up for a call. I mean, I might get more of the hundred to show up over time. >> Let's I think we're talking about different numbers. So, you get how Okay, let's say you get a,000 clicks to your page. >> Okay. >> How many people convert on the page for the $99 thing?

1:06:19>> Like it's like 10 on the conversion. So 10% will opt in and then another 20% will buy it of that of the 10% because I'll have them put in their information of the 10%. >> So we got 100 that opt in. >> Yep. >> And then we get 20% of these >> to buy. >> Yeah. >> Right. So you get 20 sales. Okay. >> And then we have a page for them to say, "Hey, to get the most out of these, schedule a call."

1:06:45>> Hold on. Click on sale. Okay. Got it. >> Yeah. >> Okay. And then of the 20% Yeah. >> Yeah. And then we'll have a thing that hey sign up to get the most of those. So So we're we're we're like one one to one. >> So there's auler here. >> There's a scheduleuler. Yeah. After the after. >> Okay. And of the 20 what percent schedule? >> Maybe 25% >> of these. Okay. So you got five. >> Yeah.

1:07:09>> Who schedule. Okay. So this is schedule. Got it. Okay. And then of the five who schedule >> like 0.05 05 will will actually show. >> You're saying 1% will show of that. >> Yeah. >> Okay. So, if I have something like that, it usually means that there's something disjointed. >> Yeah. >> So, either either the people who are buying aren't restaurant tours. >> No. >> No. So, that actually solved my problem. I used to do lead magnets for restaurants where I do like, hey, 10 ways to save food cost. And I have a hundred 100 people in a restaurant. 20 of them would want to learn about saving food cost, but only one's the buyer.

1:07:44>> Okay. Okay, the [snorts] people that buy training systems for all their staff are the the decision maker. >> Okay, I'm just telling you what problems would potentially result in this. So, one of them is that the targeting is off. Okay, >> that would be one of them that could be >> the other could be that what you're offering does not match this thing. >> Yeah, >> if you have So, like the self the thing is the self schedule at 25%. That like >> Okay. And like something's something's wrong here.

1:08:11>> Yeah. Like it's not like everything you started with of like restaurant tours, they're busy. It's like dude, I don't buy that for a second. >> Every entrepreneur on the [ __ ] planet's busy. >> They're not more busy. They're busier than everybody. Like everybody's busy. Like don't believe that. It's horshit. >> Something's wrong here. >> So one thing is my product. Restaurants don't believe they have to take inventory and do a lot of the things that my product does. They don't believe that they have a lot of them. That's why >> Well, they just bought a system for it.

1:08:36So that seems weird. >> Well, they're but Well, my my the training thing is just a lead. That's not my >> Okay. So, it doesn't match the offer. >> Yeah. Yeah. Yeah. >> So, here's what I'd recommend. More of that thing you just bought. >> Hear me out. >> Yeah. >> Match what you say they're going to get on the scheduled thing to what they bought. And then then on the sales call, you can introduce the new thing.

1:09:00>> So, my um so my software has the digital training where they can do it on their apps and all that too. They just bought like books of training. Sure. >> Yeah. So, >> so you hear what I'm saying though? >> Yeah. >> So, whatever they bought here, this thing, >> you want to match what this schedule thing is as closely as humanly possible. >> And that's it does hit. It says, "Hey, we're going to show you how to use them, get the most out of them, all of that." >> Okay. Then your business will never work. >> Okay.

1:09:25>> No, of course it will. Something's wrong here. There like there's no way this like something this I don't believe this data. >> There's no way 1% show up. >> It's 1% of customers. >> Yeah. It's not. It's like there's it's false. It's I've never seen even close to this. Either something you're tracking is incorrect or a piece of data that I'm getting right now is not true. >> Okay? >> There's no way that out of a 100 customers who make a purchase, you say, "Let me talk to you about that purchase you just made that one out of a hundred shows up."

1:09:55>> So, we're we're digging into it because I have a major sales problem. And so, and so >> and it's good. My business is growing because of retention, but I have a terrible sales problem. >> I believe you. [laughter] >> Yeah. So, I'll bet you that these people are not getting worked or that some sort of uh uh integration is not happening. So, they're not either seeing the schedule, they're not getting remind. Now, if you said they get zero reminders and the the time zones are off and so they're showing up to meetings that they're not happening

1:10:20>> automated and a real person. >> Yeah, I would believe that for sure if there's something that's wrong. But fundamentally, if you're get customers, not even leads, like you can get better show up rates on cold cold leads than on on this, but you have somebody you bought. >> Yeah. like people like you could forget the schedulers. If I just outbound dialed 20 of these people, I'd get on the phone with them. >> And I've started that the last few weeks. We we're doing that as soon as as soon as they buy I have somebody that's on it.

1:10:46>> And is more than 1% of those people. >> It's been a couple weeks, you know, and but they're not showing up to meetings still. >> Well, they're picking up like it's not about if you're outbound dialing, they pick up the phone. That is the meeting. They showed they picked it up. >> Yeah. Yeah. >> You know what I'm saying? >> Well, yeah. We're texting them saying, "Hey, here we're trying to make you didn't schedule. Here's here's the schedule." Yeah, >> call him. >> Yeah. >> Hey, you bought this thing. Let me tell you about it. >> Okay. >> Let me show you how you can use it to make more money in your business. Would you like to learn more about that?

1:11:12Great. Let me set you with Greg. He's a master at this stuff. >> Let me tell you time that you're not busy with whatevers. >> Like they're not different. That's the big thing. Like for everyone, your avatar is not special. I promise you. And like my avatar is really busy. Every person here is busy and every person here is an entrepreneur. So it's not like there's fundamentally anything different about the food business versus the doctor business. Like a doctor person could be like, "Doctors are busy all the time." Yeah, but they show up for sales calls and so do restaurant tours. I know this because I looked at a company that did exactly what you do and they had normal metrics.

1:11:45>> So there's nothing different about restaurant tours. >> There's just something broken in your funnel, >> which is fine. So the TLDDR of this is that the sales team is broken. We need to fix that and the tracking is probably off. >> Yeah. >> Okay, guys. Thank you. Appreciate [applause] >> [applause] >> 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.