Das beste Zusatzangebot für dein Business

0:00What is a good rule of thumb for how many people prepay? So, a lot of you guys uh some of you guys follow my stuff. Um I'm obviously a big fan of pulling cash forward because of all the reasons I already mentioned. One is if someone prepays for a year, no one can churn if you prepay, right? You already pay for the year. Can't really turn out, right? Uh what other benefits uh happen when when you prepay? Well, if you uh prepay, you get all that cash today. If you get all that cash today, what can you use do with that cash? Go get more customers, right? Think about this.

0:29Everybody here should at least give a 10% discount for getting paid in full today. Why? Because the value of money today is typically at least or at least that same value of that money in a year will be worth 10% more at minimum. You could take the money put in the darn stock market, right? And then wait a year and it would be worth 10% more. All right? And so like at minimum that is a that is the amount that I'm willing to give to pull cash forward. All right?

0:56Now, what percentages rule of thumb uh should you expect? So, let me give you a couple. So, um if you have uh call it a a uh like a buy 10 get two type deal, like you pay for 10 months and you get uh you get two for free, you can expect somewhere in the neighborhood of like 15 to 20% of people to take that offer. All right? if you give uh discounts in excess of that and and you give bonuses for people prepaying. And so the way I think about that is three ways you can do that. How can I how can I deliver something to them faster? How can I make it less risky? Uh and then how can I make it easier? So if I say, "Hey, um you can prepay and if you prepay, you skip the line." Ah, that sounds nice.

1:43Hey, if you prepay, you'll get a dedicated concierge versus being in group. Hey, if you uh prepay, I'll also add in our guarantee or I'll double the length of our guarantee. Right? So, these are some of the things that you can manipulate in terms of variables to pull cash forward. Now, when you have a a moderate discount plus one of one or more of those kind of like um ancillary benefits that I just rattled off, you should expect 30 to 40% of people to prepay. That's a monster difference in terms of cash forward. Now, simply offering that for many of you, if you're not doing it, will pull cash forward.

2:20Now, a correlary to that is whether you have a third-party financing company. Now, this is directly from um a firm. Uh so, I know a lot of the high-ups at a firm, not a lot, I just know a very high up at a firm firm. I'll just say that. Um a handful of them. Uh and the the metrics that they quote is a 35% increase in sales overall. Kind of interesting. So, not only does that money come forward, if you have good financing, you can also increase sales overall. People who would not have been able to buy are now willing to because they have more convenient ways of paying. So, that kind of gives you a double whammy of, oh, people who wouldn't buy did. And they went from not buying to me having all that cash today, which is why having very good financing partners can be a huge game changer for a business. Now, I will I'll put this little caveat in place, which is that financing will not save your business.

3:07If your if your food sucks at your restaurant, financing it will just get more people to find out that the food sucks faster. All right, so I've never seen a business get saved by this. But I have seen businesses grow for sure by making some of these deals and putting them in place. Now, let me give you a couple payment structures that you can use um that have worked really well for me. So, right off the bat, if you just say like, "Hey, people go into monthly." It's like that's a way of doing things.

3:32But I would prefer to sell durations and then say, "Cool, prepay and get guarantee, priority, and concierge, right? Let's pull it forward." If they still can, I say, "Great. Let's split it. Half now, half in a month." Now, this is little little pro tip on this. Half now, half in a month, I might sell 3 months or six months of stuff. There's no need for me to wait 3 to six months to get paid. I still want to get paid now and in 30 days cuz they got the money. I might as well ask, right? The worst they can say is no. After they say no at two, I say great, let's go for a third payment. Again, one, two, three.

4:04Even if it's a six-month or 12-month, I want to pull that cash forward. Now, a little pro tip again is always ask if it's to uh if you're if you're talking to a wiji, uh ask them when they get paid and then align the payments on those days. If you're not talking to a wage, you can ask when they have the pre uh the majority of their deposits hit, when they are the most cash flush cash flush in the business, and then you can set it for those dates. Um, you do not need to coordinate payments with your delivery. Now, one of my favorite uh methods of payment so that I can pull cash forward is something that came out of the depression in the 1930s, which is something called layaway. It might be something as old as time. I'm sure it was in 2000 BC, but I just know from the from the depression because of course I lived there um at that time. And so the way it works is simple. You start paying now and when you finish paying, you get the thing. Very straightforward. That's it. So you can I remember and I remember the first time I did this um I had I was selling this is with Allen. I was selling uh we had this big onboarding because what Allen was hire kind of enterprise SAS. So, we would sell to agencies. Uh, it was $25,000 to white label and then they would use it kind of as their own operating system. And so, it cost 25 grand to kind of like get onboarded. And so, I would do two two agencies at a time. We do as a full day onboarding with me and my team and we'd help them get set up, walk them through everything, etc. Right now, I remember having uh uh two partners who were on the phone uh saying uh they're like 25 grand. They're like, "That's awesome."

5:33Um, and then uh they said, "Can we split into payments?" And I said, "Sure." And they said, "Well, um, how many payments can I split it up to?" And I said, "As many as you want." And they were like, "Oh, amazing. We'll just spend, you know, we'll just do 2,000 bucks a month, um, and we'll we'll pay it off, you know, this year." And I said, "Okay, cool. So, we'll just set your onboarding for a year from now." And they're like, "Oh, we got to like pay before we come in." And I was like, "Yeah." And they, it was, this is why it was such a reinforcing moment for me. They just said, "Oh, okay. Well, we'll do half now and half in a month.

6:07and we'll be out next month. And so what's cool about layaway is that when people understand that like the faster they pay, the faster they get, they are now incentivized to pay it off as fast as possible rather than you trying to pull it forward, which is why I'm such a big fan of layaway as a payment option. In addition to that, collections become significantly easier because they haven't got anything yet and so they've already decided they want this thing. I also like layaway because people have anticipation. Think about the last thing. Maybe you were a kid when you did this, but like I remember there was this pair of Oakley sunglasses that I thought were the coolest ones. You might have remembered them. They were um X-Men.

6:43Cyclops had that like orange that orange pair. I think I was like I don't know young when that came out. And I thought he looked like the coolest guy ever. So I saved up for a whole summer doing chores to buy $160 sunglasses, right? Which is absurd. But I I I think they were $120 or $160 at the time. Inflation. Um, and they were like the hottest, coolest sunglasses. So, anyways, I save up the money. I get the sunglasses. And I remember the anticipation of being able to get the sunglasses at the end of the summer was better than the sunglasses ever were. In fact, it was so good. I literally never wore them because I was so afraid of losing them because I spent so long to save them. Um, which was also a great lesson in like sometimes you got to just learn to spend money and enjoy what you spend. A different thing for a different time. Um, but that being said, you also benefit from that customer anticipation when you set up the payment this way.

7:34So, there's a lot of benefits to doing this way. And the biggest one of all, you risk nothing. They pay before you deliver anything. And so, you get to have the cash before you have to risk delivery. So, those are all different ways you can accelerate cash flow in the business. Real quick, I'm going to show you the exact 10-stage road map from zero to 100 million plus that less than 1% of companies finish. I've now done multiple times. And so I can say with a lot of confidence that these are the stages as headcount increases that you need to get through. And I broke each of these down by eight different functions of the business. What the constraint feels like, like what are the symptoms of it when you're going through it. And then what steps we actually took to graduate. And we've done this across software, physical products, uh service businesses, brickandmortar, all of this.

8:18And it works. And it's my gift to you. It's absolutely free. And so the link's in the description, but you just go acquisition.comroadmap. Just enter your info and it'll spit it right back to you. Offer it.