You Just Have to Sell Better Stuff to Better People.

0:00Okay, Peter. You got to answer on this one. All right, Pete. >> Uh hey hey hey. >> Hey, Peter. >> Oh my Alex, I almost almost cried, man. I've been going to the workshop. >> [laughter] >> Man, I'm from Baltimore. >> No, I saw your area code. I saw your area code. All right, that's That's why I did it. That's why I called you back. All right, so you're doing you're doing seven top line, right? >> Mhm.

0:25>> All right, you got two in profit. It's insurance. What kind of insurance? >> Yeah, so we sell final expense. So, I need your help here. We sell to poor people. So, burial insurance, which is a really interesting model. >> Burial? >> Burial insurance. >> Yeah, yeah, got it. Yeah, got it. Okay. Okay, got it. All right, so what's the issue? What's holding you back? >> Yeah, so um we're kind of like at a crossroads right now. So, we I have built a large brand. I have about 60,000 insurance agents on my YouTube channel.

0:52>> 16? >> Um 60,000. >> Oh, got it. Great. >> So, I get nationally about 20 to 30 people that want to work with us to to grow our team. Basically, we want to scale our team. So, >> Uh-huh. >> our biggest problem is increasing our LTV um and our profitability. Right now, our options to expand or increase our LTV are to increase and go into a new product like Medicare, which is really highly compliant. >> Yeah. >> Or to offer insurance products like we're in LOA call center, so we generate the leads, we pay salaries, and it's a small margin for our agents. But, opening up the broker model

1:23>> Yeah. >> basically, there's a licensing model where we can take them, they pay the fee, and then we can ultimately have them at a high contract, but they take on all the rest. So, we don't know if we should just open that up to go from LOA or call center model to now a brokerage model, or add an additional product like Medicare. So, >> So, you said your margins are bad, but you're running 30% margin. So, like >> Our Yeah, um how do I say current is current is is tough. Uh it's a battle. We pay for all of our agents' chargebacks.

1:51>> Yeah. >> no risk. So, it's like you have to keep selling new products to keep up with the chargebacks cuz when you're selling to poor people as you know, it's a lot of returns. You know, they can't afford 60 bucks. Um we're bootstrapping this business. We have, you know, a healthy savings. >> Yeah, yeah, yeah. >> It's It's a We're in a We're in a tough spot right now. >> Well, I think selling a better product to more affluent customers a good idea. I don't really love I mean like I'm not going to make you feel bad. Um but like, you know, if you're getting a ton of chargebacks, like that kind of sucks. You know what I mean? Um like it's not a good way to live. You know what I mean? Like I mean you can make a buck, but like make make enough to go legit. You know what I mean?

2:33>> Yeah. >> All right. >> you Mhm. >> So, I I do like a more a superior product. Um and you obviously know how to market and sell, right? It seems like you have that skill set. So, you just got to sell better stuff, man. Better stuff to better people. You have a You have a good base skill set. You know how to recruit, you know how to hire, you know how to train, you know how to market, you know how to sell. You got a lot of the right tools. I think you just got to build a better business with those tools that you got. >> Okay. Build a better business. So, would you just find a different product to sell

3:01>> Yeah. >> in this instance? We know how to market. Okay. >> Yeah. >> And would you still build into like keeping the LOA, cuz there is that we get the the long-term value, which is the residual play a little bit, but it just made our products things thrown us up. >> Yeah, but the the residuals aren't worth much, because the people cancel so quick. >> Yeah. >> Right. >> So, if you built if you started for 2 years, would you just say, "Hey guys, like prepare the team to change the product?" >> No, it's it's You're in a tough spot, but like >> Yeah. >> it takes I mean sometimes I mean like listen, I I like I want to be up front.

3:27You're making money. All right. So, I don't I don't want you like, you know, I don't want you to burn your building down. But, the main thing is like it really depends on your goals. Like either you have to like if you can figure out a way to improve the service or improve the expectations such that people stop charging back, this can be a business that's better. And so like if we think about which problem would you rather solve, right? So, problem one is I can try and improve the way that my people sell, how they're being pre-framed on the call via the nurture, the marketing, all the messaging that they're seeing prior to the prior to the phone call, right? And then whatever their experience is post call or some automation, some AI I can put in so that I can retain these people and increase their LTV.

4:04If if I can do that, that's that's one solution set to fix the business. The other solution set is to enter another business which fundamentally like even though it's insurance, it's a total you already know this, it's a completely different ball game, right? Different avatar, different acquisition process, different sales process, all of these pieces, right? >> Mhm. >> So I hesitate a little bit to say like go go you know go change everything. I'd rather you see if you could fix the existing thing because you already have it down. Like it's just like can we just fill the two holes that are breaking this rather than like really overhauling the whole thing.

4:38But I do think if we're looking at a 10-year time horizon rather than a 2-year time horizon, you'll probably be better served with the better better customers, higher ticket. >> Okay, gotcha. So expand that way. It's almost like Chiron had that broken model we didn't take into like we have the people but our model doesn't attract A players cuz it's like a call center like LOA >> Yeah, I mean you're you're selling to broke people. It sucks. Like I mean like you're like a collections company like 50% Yeah, it's brutal.

5:04>> Well yeah, it's it's tough. A lot of problems so change the you think by changing the product you also can change you know ultimately who you recruit because there's obviously >> Dude, a thousand percent. A thousand cuz like no one wants to be some no one wants to sell this. No one wants to buy it. No one wants to sell it. Right? >> can't and we can't control the product cost because it's like 60 bucks and >> I get it. >> a lot of agent retention problems too.

5:29>> Of course. Yes, of course it is. They I mean think about it. Like you deal with absolutely terrible people >> Mhm. >> And so everything sucks. Everything stems from there. It's terrible people, terrible products, terrible employee like a whole thing sucks. >> Yeah. >> So so we just have to fix that. >> Well, yeah. I appreciate it. I'm we're trying to think about adding the product, but it's just it's the people and it's it's painful these last >> Of course. >> 1/2 years, but >> you learned. You learned a ton of skills and now you just going to apply them to a better opportunity.

5:58Nothing wrong with that. Nothing wrong with that. Dude, you learned How old are you? >> 26. We've been >> Dude, you're fine. >> Yeah. >> You're fine, dude. Dude, >> 26 from Baltimore. >> That's right, man. That's right. >> Yeah. >> Um no, so I think I I would go I would go with the higher ticket, better insurance. The only so the the skill that you're going to need to learn, you really only have to learn one right now. The skill that you're going to need to learn is you're going to have to learn how to advertise to higher socioeconomic people. And I mean, to be fair, just not bottom feeders. So, they don't have to You don't have to you know, advertise ballers. You have to advertise normal people.

6:30>> All right, middle class people. >> Mhm. Yep. >> Okay. >> Yep. >> like one call close. It's like all we're doing is chasing that next sale >> Of course. I know. >> It's it's hard on the guys. Man, >> You just need to take this monster front end. Maybe you expect that it's going to be a two call closer, a three call close. Okay, but if LTV's 10X, you can attract way better closers. They'll stay longer and there's also more models that are available to you like a brokerage, etc., which is a legit, you know, it's a big, you know, big boy

6:58>> Yeah. >> And those things exit for 15, you know, 15X, 12X, sometimes 20X multiples on premiums. >> Yeah. >> Super big. Real enterprise value. >> Absolutely. >> All right. >> plan. Thank you, man. I'm I'm from Baltimore. Thanks for calling back. I don't know how I'm going to sleep at night. >> [laughter] >> We'll see you. See you in 2 weeks at the workshop. >> All right, rock and roll, man. I appreciate you. >> buddy. >> All right, see you. >> Thank you. Bye. >> 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 zero to one, zero to 10, and zero to 100 plus. And so, you can click here and you can check it out.

7:38Again, absolutely free. And since you're a business owner, I appreciate you and enjoy.