00:00:00- I've been in business for 14 years.
00:00:01Last year, our companies in total
00:00:02did over $250 million in aggregate revenue.
00:00:04I co-owned the platform Skool,
00:00:06which is over 22 million users.
00:00:07And Skool's a platform that allows people
00:00:09to start and scale digital businesses.
00:00:11And so I have access to quite literally
00:00:13millions of data points on what makes digital businesses work
00:00:16and what doesn't.
00:00:17And so in this video, I'm answering your questions
00:00:18about how to scale.
00:00:19- I sell dreams and I built an ecosystem
00:00:21to make it happen, essentially.
00:00:22- What does that mean?
00:00:24- Let's get into it.
00:00:25I start off flipping homes.
00:00:26- Okay, thank you.
00:00:28(laughing)
00:00:30- I start off flipping homes and it got to a point where--
00:00:32- I saw hope and opportunity.
00:00:34- Hey, it works.
00:00:35(laughing)
00:00:37I flip houses, got to a certain point.
00:00:39We had about 30, 40 consecutively
00:00:40every year of the same market. - What's revenue?
00:00:41- Revenue is about four mil.
00:00:43- Okay.
00:00:44- Just not line itself.
00:00:45But then it got to a point just too much competition,
00:00:47had a hard time being profitable per flip.
00:00:49So then developed a model where we convert competition
00:00:53to collaboration.
00:00:54Started a contracting company instead of buying the product,
00:00:56becoming the product.
00:00:58And then started a coaching channel
00:00:59where I feed this ecosystem.
00:01:01Vertically integrated HVAC company, roofing company,
00:01:04dumpster company, contracting, the whole nine yards.
00:01:07So I'm teaching people how to do it
00:01:09and I'm giving them the process on how to do it.
00:01:10All that is different revenue drips for me.
00:01:13What's stopping me?
00:01:15I got too busy too fast and owner-operator for a long time,
00:01:19up until about three months ago.
00:01:20Hired a COO.
00:01:21Now transitioning a lot of the operation stuff onto her.
00:01:25Really, I don't know what the fuck I'm doing
00:01:27'cause like I'm trying to transition myself out.
00:01:29I don't know how to run a COO.
00:01:30- Are you trying to transition out of the role
00:01:32or out of the company?
00:01:34- A little bit of both.
00:01:35So out of the role because to be honest,
00:01:38I don't really care about the revenue growth factor.
00:01:41I care more about the impact.
00:01:43So I promise I made myself is that I want to impact
00:01:45at least like a one million lots before I die.
00:01:48So how do I do that?
00:01:49I'm not going to be doing like flipping homes
00:01:50at a small scale.
00:01:52But I built a company that's so based in locality
00:01:54that I'm trapped within it.
00:01:56Because it's so local, my team is there,
00:01:58my resources, my companies.
00:02:00The coaching program only makes sense because it's local.
00:02:03But because of my market size,
00:02:05there's only so many people I can get consecutively
00:02:07every time unless I keep dropping prices,
00:02:09the opposite of increasing prices.
00:02:11So what does that mean?
00:02:12I have to go to a national stage.
00:02:14How do I take this coaching at a massive scale?
00:02:18And that's where I'm stuck at
00:02:19'cause I'm too busy in the operations.
00:02:21And that's where Amy came in as a COO
00:02:22to kind of help me get out of it
00:02:24and focus on the next phase of the origin story.
00:02:27- So dude, like I appreciate the national scale vision.
00:02:32I think you could probably get to given the ticket size
00:02:36and how you can monetize the customer
00:02:38in all these hundreds of ways.
00:02:39Like the reason you would do that setup
00:02:42is so that you could dominate a local market.
00:02:45You're not dominating a local market right now.
00:02:46You're barely getting started.
00:02:48And so you could probably realistically get
00:02:50between Fayetteville and Raleigh,
00:02:53you could probably get to 100 million a year.
00:02:56- Justin, I'm not gonna loan.
00:02:57- Yeah, and I think if you just take your eyes off of like,
00:03:00I wanna conquer the entire world, it's like maybe,
00:03:02but like in order to conquer the world,
00:03:04you have to conquer a country first, right?
00:03:06And before you conquer a country, you gotta conquer a city.
00:03:08And right now you haven't conquered a city.
00:03:09And so what happens is when armies overexpand, they collapse.
00:03:14And so you need to fortify your base better
00:03:16'cause 10 a month is nothing.
00:03:18- So what do you recommend?
00:03:19Do I try to automate what I have?
00:03:22Or do I just put myself more into it and dump it down?
00:03:25- Yeah, I think you should just ignore the national thing.
00:03:28- Yeah.
00:03:29- And let me just ask the simple question.
00:03:31Can you, could you sell 20 people a week right now?
00:03:35Not like, let me say it differently.
00:03:37Can you handle 20 people a week?
00:03:38- We will be soon.
00:03:41- Okay.
00:03:42- Now that CO has kind of taken over.
00:03:42- So you could have an eight X increase in sales
00:03:46within your current infrastructure.
00:03:47So that would take you from four to 32.
00:03:51That solves the revenue problem, not the impact problem.
00:03:54- Do you make content?
00:03:58- I don't have time.
00:03:59(laughs)
00:04:00Yeah, if you couldn't tell, yeah.
00:04:02But that's where I'm slacking the most.
00:04:05Yeah, it's the content.
00:04:06- It would be far easier for you to just make content
00:04:10about the stuff you're doing,
00:04:11impact millions of people that way.
00:04:13Then try and get every single person
00:04:17in America to be a home flipper.
00:04:19- And that's not achievable anyway.
00:04:20- I agree.
00:04:21- It's more about the financial education,
00:04:22like selling the dream of like you could be something more
00:04:25than just what you think you are and where you came from.
00:04:27- And you can make content about that
00:04:29and you can distribute it for free with leverage.
00:04:31It's a beautiful thing.
00:04:32And so like you can be legit
00:04:34because you have a legitimate business
00:04:36and then you can talk about it
00:04:38and help all these other people.
00:04:40And then you just keep growing this thing.
00:04:42- Okay, so double down locally.
00:04:44- Yeah, you already have all the,
00:04:45like you went through whatever the hell you did
00:04:47to go through and build all that stuff.
00:04:48It's like you just built it and you're like,
00:04:50you know what, I'm gonna leave it now
00:04:51and I'm gonna do another thing.
00:04:53It's like, no, like I'm glad you brought the COO in,
00:04:55but it's probably so that she can do
00:04:57some of the stuff you're doing now
00:04:58so you can do the stuff you know you should be doing
00:04:59but you're not.
00:05:00And so if you wanted the impact, you see you don't have time,
00:05:02you have the COO, go make some content.
00:05:03It's not gonna take that long anyways.
00:05:04And that way you can scratch your impact itch.
00:05:07And then for everything else, it's like,
00:05:08you need to learn how to run paid ads and sell shit.
00:05:10'Cause like you for sure can sell 20, 50, 100 people a week
00:05:13in a local market, no problem for the offer that you have.
00:05:16- Should I increase pricing to make it better
00:05:19or should I keep it where it's at
00:05:20given that it does feed my other channels?
00:05:22- You probably have a better time
00:05:23just like charging a hundred grand
00:05:25and saying you'll do that stuff for free or at cost.
00:05:27- Yeah.
00:05:30- But yeah, I mean, can you raise prices?
00:05:34It's just like, can you sell and can you like, yes, you could.
00:05:38Typically an offer like this is a hundred grand.
00:05:40So usually they have a done with you style offer
00:05:42that's between 15 and 25.
00:05:44And then there's a total turnkey offer, which is $100,000.
00:05:48No one in my market can afford that, that's the problem.
00:05:51- That is just not true.
00:05:52No one in your market that has heard of you
00:05:56through word of mouth and you emanating your presence
00:05:58into the workshops that you run,
00:06:00one's a quarter or whatever can afford it.
00:06:03If you run ads, yes.
00:06:05It's just that like, how many people show up to your thing?
00:06:08- The venue holds 55 is packed out every time.
00:06:11- Yeah, so you have 55 people a month that come in the doors.
00:06:14- Every three months, yeah.
00:06:15- Every three months, right, dude.
00:06:17So it's like, the way this looks in reality
00:06:20is you'll bring a hundred people in the room
00:06:23and you'll do three of those in a day
00:06:26and you'll pitch and you'll close 10, 15,
00:06:28you'll close three or five at the, you know, like the 100K
00:06:31and you'll close a handful at the, you know,
00:06:34call it 15 to 25K and that's the business.
00:06:38So you'd like, you're like, you see 200 people a year
00:06:41and you're like, my market can't afford it.
00:06:43It's like, well, those 200 can.
00:06:44It's like, look at 2000, I'm sure there are some.
00:06:46Let me give you a stat.
00:06:479% of people in America have a million dollars
00:06:51in terms of their net worth.
00:06:52So if you include, like, value their home at like 9%,
00:06:55it's significantly higher than you think it is.
00:06:58They just look older.
00:06:59Real.
00:07:01- Okay.
00:07:02- We sell motocross training.
00:07:03- Okay.
00:07:04- So we hold five-day camps.
00:07:05What we did to be able to get our projection to 26
00:07:09to the four million is we scaled down
00:07:12our single-day tour dates.
00:07:14We did more in 2014.
00:07:16- Love this for us.
00:07:17- We went all the way to,
00:07:19we scaled from 70 single-day tour dates in '23
00:07:23to 140 of them in 2024
00:07:26and it was just a ton of operational drag.
00:07:29I mean, it was like, we were like a rock big non-tour.
00:07:30- Twice as much.
00:07:31- It was nuts.
00:07:33But what we realized in looking back on it
00:07:35is the bottom 20 of those were net negative.
00:07:37The next 20 were net less than a thousand dollars,
00:07:40so inconsequential.
00:07:42And then I started looking at, in 2024,
00:07:44we did three of the five-day camps,
00:07:46kind of as a test run.
00:07:47Each of those net well over 100 grand each
00:07:50and I'm like, well, hang on a second.
00:07:52This is the answer.
00:07:53So this year, I told the team,
00:07:55at first I called them, I said,
00:07:56"Hey, I just had an epiphany, here it is.
00:07:58"We're gonna do 10 camps."
00:08:00And I said, "Actually, no, we're actually gonna do 25."
00:08:03And they're like, "What, 25?
00:08:04"What do you mean 25?"
00:08:06My question is, do I continue to my--
00:08:10- Were you just able to charge more for the three-day
00:08:12than the one-day?
00:08:13Why did they make some, sorry.
00:08:15- So the one-day is $300, which is probably not enough.
00:08:18The five-day is $1,200, which is definitely not enough.
00:08:22So that's part of the question, too.
00:08:25- Cool.
00:08:26- I wanna continue to scale the five-dayers
00:08:28and scale down the single days,
00:08:30but my fear is we basically own the space.
00:08:32Nobody else does what I do.
00:08:33It's a pretty large market.
00:08:35There is one copycat company
00:08:37and he's trying to hit all these single-day tour dates
00:08:39in the regions that we're doing them.
00:08:40So I'm afraid if I scale them down too much,
00:08:43we won't be able to--
00:08:44- You'll be the model that makes the money.
00:08:45- That's a great point, yeah.
00:08:47(audience laughing)
00:08:50- Love this for us, right?
00:08:51(audience laughing)
00:08:53I hope he does.
00:08:54- Okay, I could, honestly, I could go home right now
00:08:57and I'd be happy after that.
00:08:58(audience laughing)
00:09:00Yeah, you're right.
00:09:02You're right, and I feel more confident
00:09:03that I don't think he could do what we could do anyways,
00:09:05but he certainly can't do what we can do in a five-day event.
00:09:08I mean, we've run those five-dayers like nobody else, so.
00:09:10- Yeah, and I'll land the plane on that for you, too,
00:09:12which is that you will never go out of business
00:09:14focusing on the customer.
00:09:15And I'll tell you a quick story.
00:09:17So the biggest business mistake that I've made,
00:09:20the two most costly business mistakes I've made,
00:09:22one of them has nothing to do with this.
00:09:25This is the other one,
00:09:26which has everything to do with this.
00:09:29I had a competitor that ended up taking
00:09:33a bunch of my top testimonials
00:09:34that we kind of converted to semi-employees
00:09:36because they were big evangelists
00:09:38back in the gym launch days.
00:09:40And as soon as they took them,
00:09:41and they were big ads for me,
00:09:43all of a sudden they were running ads for this other guy.
00:09:45So it's kind of like when the Verizon guy
00:09:47went to the AT&T, remember that?
00:09:48That switch over that actor?
00:09:50It was kind of like that.
00:09:51And this guy was offering one-on-one coaching
00:09:55to help people out, and I never did that.
00:09:58And they were cheaper.
00:09:59So they were cheaper, they were doing one-on-one,
00:10:01and they had some of my top customers becoming advocates.
00:10:06And they said that the 10 of them had come together,
00:10:07they partnered.
00:10:08He partnered with these 10 people or something like that.
00:10:10And when that happened, my feathers got all ruffled,
00:10:14and I was like, it's war time,
00:10:17we gotta go to the mattresses,
00:10:18we gotta really change the business up.
00:10:20And so I did this big kind of relaunch internally
00:10:23to my existing customer base.
00:10:25And I did this big value stack,
00:10:30and then I said, you're gonna get all this extra stuff,
00:10:32not for the same price you're paying me, but for less.
00:10:36And so I took my existing recurring base,
00:10:39and I reduced my revenue by $500,000 top line per month.
00:10:44And so that translated, 'cause we'd take it off top line,
00:10:46and the costs went up.
00:10:47So I increased my costs,
00:10:49and I took my top line down by six million,
00:10:51and I ended up losing in profit
00:10:54some of the neighborhood of six to $7 million a year
00:10:56for that business at the time.
00:10:58I then ended up selling that business, obviously,
00:11:01and the business never recovered that profit.
00:11:04It stayed there.
00:11:05And when I did make that move, the first comment in the chat
00:11:10after I dropped that it was less
00:11:12was a complaint that I had not done it earlier.
00:11:15So it was not,
00:11:15thank you so much for lowering the price
00:11:17and giving us more shit.
00:11:18It was, I can't believe I was paying more.
00:11:21And I was like, I wanna fucking kill myself.
00:11:24(laughs)
00:11:26And here was the best part of all.
00:11:28My churn changed zero.
00:11:31So I just cut my top line by 20%, churn remained the same.
00:11:34Because the willingness to pay changed that I made.
00:11:36I basically reduced it from,
00:11:38call it 3,000 a month to $2,500 a month.
00:11:40It actually made no real difference
00:11:43in whether someone would cancel or not.
00:11:44It was past a threshold that this is a lot of money.
00:11:48And so it changed nothing.
00:11:48I just made less money.
00:11:50And then when I sold the company,
00:11:51that six got multiplied by a lot.
00:11:54And so that probably cost me
00:11:55in the neighborhood of probably $50 million.
00:11:58And so the big lesson that I learned there
00:12:00was that I shouldn't,
00:12:01and that competitor ended up killing that business
00:12:05because it wasn't fucking profitable.
00:12:06And so I was the market leader
00:12:09and someone came in to undercut me.
00:12:11And then I said, oh, I'll copy the moron.
00:12:14- It's easy to let happen.
00:12:15- Yes. - Yeah.
00:12:16- And so don't lose $50 million.
00:12:18Let him figure that out for himself.
00:12:21You just focus on the customer and you'll win.
00:12:23- Good answer. Thank you.
00:12:24- Appreciate you.
00:12:25If you're a business owner,
00:12:26I'd like to invite you out to come to our headquarters
00:12:27in Vegas to see how we scale businesses
00:12:30using what we call the value acceleration method,
00:12:33which is a compilation of all the stuff that we've learned,
00:12:35breaking down different businesses
00:12:37across different industries.
00:12:38And if that sounds at all interesting,
00:12:40you can click below and book a call
00:12:41and we'd love to potentially meet you and see you in person.
00:12:44- I sell coaching to real estate agents.
00:12:46I do two and a half million.
00:12:49I'd like to double it.
00:12:51What's stopping me?
00:12:52That's a good question.
00:12:53Your boy, Ed, he seems to think I could be just super famous.
00:12:56And he's like, you need a brand manager.
00:12:59- Yeah.
00:12:59- And so he's like, you need somebody
00:13:01that has already kind of achieved that with someone else.
00:13:04- Yeah.
00:13:05- So I guess my question is how do I find that person?
00:13:07'Cause 99% of the stuff out there is scams, basically.
00:13:12- Totally.
00:13:12And I would even define them as scams.
00:13:13I just people with that are not that competent.
00:13:16- Scam.
00:13:17- I think it comes down to deception,
00:13:20whether they intended to see or just aren't that good.
00:13:23But back to your point.
00:13:25Yeah, I agree.
00:13:26So fundamentally, if you want to just make more money
00:13:28and you are a brand that promotes itself,
00:13:31then you need to advertise more.
00:13:32Are you constrained on your delivery?
00:13:34- Delivery as far as the fulfillment?
00:13:36- Yeah.
00:13:37- No, it's group coaching.
00:13:38It's easy.
00:13:39- So you could double the amount of customers
00:13:40you have right now and it wouldn't be an issue?
00:13:41- The triple, quadruple, yeah.
00:13:42- Okay, well then, yeah.
00:13:43I mean, this is a pure advertising play.
00:13:45You probably, I mean.
00:13:47- I'm interviewing sales guys and I'm looking at paid ads,
00:13:50like hiring people for that.
00:13:51So like, I'm getting into that.
00:13:53- Yeah, the paid side is gonna give you,
00:13:55call it like a one time three to five X off of a baseline,
00:13:59not a promissory guarantee.
00:14:00Just saying like, that's what I would say is kind of typical
00:14:04if you've gotten to this point off of just organic.
00:14:07Obviously we can help you with that stuff.
00:14:08But like the long-term kind of like well
00:14:12that you need to keep digging is you want to,
00:14:16so think about like this.
00:14:19So you have, just imagine this as your audience.
00:14:23Right now you're monetizing these people, right?
00:14:26The people who are just like super hot,
00:14:27they love you forever and you continue to promote
00:14:30and this gets filled up with new eyeballs
00:14:32and then they come up because they see your stuff
00:14:33and then they give you money, yay, right?
00:14:36So if you, when you start doing,
00:14:40if you do more organic and do it across more platforms,
00:14:43do it more consistently, do it with higher volume,
00:14:44do it with higher quality, then what you're gonna do
00:14:46is you're gonna grow this base.
00:14:49This percentage will stay about the same,
00:14:50but now it's gonna go to here, right?
00:14:52So then that dollar sign goes up.
00:14:53That's a great long-term play
00:14:55and you just want to keep growing the pyramid.
00:14:57What ads will do is that ads will keep this the same
00:15:00and then it'll move this line down.
00:15:02And so you want to do both.
00:15:04So like in the short term, if I was like,
00:15:06how do I like double your business?
00:15:07It's like, that wouldn't be that difficult.
00:15:09I would just be like, cool, just pull the ad lever, it's done.
00:15:11But if we were looking at a 10 year horizon,
00:15:14then I would say, well, we need to do both of these
00:15:15in parallel, we need to continue to plant the seeds
00:15:18and then the ads kind of reach off the top and skip.
00:15:22- That makes sense.
00:15:23- Yeah, for sure.
00:15:24So how do you find an ad manager?
00:15:25I mean, a brand manager?
00:15:27- So. - That's good.
00:15:29- Yeah, the best thing, I mean, we just poach.
00:15:32We just, I mean, just outreach.
00:15:34Hey, you've crushed it with so-and-so,
00:15:35can I pay you more to do it here?
00:15:37- Right, I guess how do you realize
00:15:39who those people are to poach, like who?
00:15:42- Look at the brands that you admire
00:15:44and then reach out to them
00:15:46and offer them more money to do it for you.
00:15:48- But you see the brand,
00:15:49but you don't really know who's behind the brand.
00:15:51LinkedIn, like Frank can help, like.
00:15:55- Yeah. - Solvable.
00:15:57- Gotcha. - For sure solvable.
00:15:58Yeah, I mean, and most of the people
00:16:00who are really good at media stuff
00:16:01do have some presence anyways on their own,
00:16:03so they don't make themselves invisible.
00:16:05Like you could probably chat GPT search
00:16:08who are the people who are involved with that.
00:16:10- Here's my question.
00:16:11Like, is that something that could be outsourced?
00:16:15- You mean recruiting?
00:16:16- No, no, no, no, no, not the recruiting part,
00:16:18like the brand manager part.
00:16:19- No, I wouldn't recommend it.
00:16:20- Yeah, bring somebody in-house.
00:16:22- Thing is, so what are the core things to the business?
00:16:25So for every business you have attraction,
00:16:26you've got conversion, you've got delivery, right?
00:16:28Those are the things that are core to every business.
00:16:30IT, recruiting, finance,
00:16:33I see all of these functions as ancillary
00:16:35that aren't core to value creation for the customer.
00:16:39They're things that must occur for the business
00:16:40to continue to be a business,
00:16:41but not things that are core for the value to be created.
00:16:44And so for you,
00:16:45your brand is arguably the most important asset
00:16:48that you have and for sure would not be something
00:16:50that I would outsource.
00:16:51- So bring somebody in-house, working directly for me.
00:16:53- Yeah, I would poach somebody.
00:16:55Obviously we've done, we've hired a lot of media people,
00:16:57you know, I'll be with that.
00:16:59But beyond that, I would probably,
00:17:01if I'm doing order of ops, you'll probably be,
00:17:04'cause the thing is, is right now, are you selling,
00:17:07you're selling, who's doing the sales?
00:17:09- Well, so I do it in a challenge.
00:17:12- Okay. - And that's the only time
00:17:13I offer it, you know.
00:17:14- You do one to many, five day thing, something like that.
00:17:16- Yeah, yeah. - Okay.
00:17:17- And so I'm gonna switch to book a call,
00:17:18single-cell guy, close. - And do it on a recurring
00:17:21kind of evergreen basis, or still do it in this launch format?
00:17:23- I'll do it both, I'll do both.
00:17:25- Yeah, but okay, but you're selling straight to checkout.
00:17:28Got it.
00:17:30Yeah, that motion, as soon as you turn on ads,
00:17:35is going to break in all likelihood,
00:17:37because it's totally different selling to cold
00:17:39than it is to warm.
00:17:40And so the motion- - What do you mean break?
00:17:42- You will not convert the same percentage you currently do.
00:17:44- Yeah, no doubt, no doubt, no doubt.
00:17:46- By a lot.
00:17:47- And so the whole, the economics of the entire funnel
00:17:50will change, and so that'll take some adjustment in motion.
00:17:53So just more like preparing you for that,
00:17:54'cause that's what comes next.
00:17:55- Yeah.
00:17:56- So high-level recruiting for brand manager,
00:17:58that's gonna start building the base.
00:18:00And then ads plus sales motion
00:18:02are gonna have to come in tandem,
00:18:04because they both have to be good.
00:18:05The ads have to be good, and the sales motion has to be good.
00:18:08If the ads are great, and the sales motion sucks,
00:18:10it won't work.
00:18:11If the sales motion's great and the ads suck, it won't work.
00:18:12- Cool, thank you very much. - Does that make sense
00:18:13for next steps?
00:18:14- What's up?
00:18:15- Does that make sense for next steps?
00:18:16- Yeah, go to LinkedIn and poach somebody.
00:18:18Got it.
00:18:19(laughing)
00:18:19- We sell sales coaching and lead gen to financial advisors.
00:18:24We're at 6.6 million.
00:18:26We'd like to be at 20 plus.
00:18:28- Okay.
00:18:29App down, paid ads, events, how do you sell?
00:18:31- Paid ads.
00:18:32- Okay. - Yeah.
00:18:33- Straight to via cell to phone team?
00:18:35- Correct.
00:18:36- Cool. - Yep.
00:18:37- Yeah, biggest thing is churn,
00:18:38as with pretty much all agencies.
00:18:40So we've basically transitioned from lead gen company
00:18:44to sales coaching company,
00:18:46'cause we know that advisors can't close.
00:18:48No offense to any advisors in here.
00:18:50But yeah, so we're doing a lot of sales coaching now.
00:18:54So we have like the big head, long tail,
00:18:56where we can sell the lead gen on the back end.
00:18:59- Okay.
00:19:00- So yeah, the main question is,
00:19:02have you seen other agencies successfully pivot
00:19:04from lead gen to sales coaching,
00:19:06or in like very non-sales or industries
00:19:10where founders or business owners are sales deficient,
00:19:13have you seen companies successfully train
00:19:16their clients on sales?
00:19:18- Yeah, sure.
00:19:19- So like a gym lunch, how did you guys successfully do that
00:19:23across thousands of gyms?
00:19:24- We had something called Boiler Room.
00:19:26We trained their trainers and front desk people every morning
00:19:29and drilled them, role played,
00:19:31and separate them in the groups the same way
00:19:32we would our own team.
00:19:33So we just did it every morning for them.
00:19:35And it was just an add-on.
00:19:36- Just group role play basically?
00:19:38- Mm-hmm.
00:19:39Just like you'd have a sales manager meeting
00:19:40where you'd role play whatever particular part
00:19:41of the script they were all struggling with.
00:19:43And so we break sales training from the team side,
00:19:47not on the one-on-one side, into five parts.
00:19:48We've got intro, we've got disco, we've got offer,
00:19:51and then we've got objections and looping.
00:19:53And then fifth A is basically whatever
00:19:55is kind of the hot topic of what's the thing
00:19:57that we think is going to benefit the team the most.
00:19:58And so that's kind of how we rotate through.
00:20:00We have to keep each part of the script crisp,
00:20:02otherwise they'll fuck up something.
00:20:03And so that keeps the sword sharp.
00:20:06And that's what we did across the team.
00:20:09We do that for our teams too.
00:20:11But I think it's likely that it's under,
00:20:14basically you need to provide more value
00:20:16or you need to lower the price.
00:20:17And so if you want to tackle churn,
00:20:19it has to be like there are for sure businesses
00:20:22that work in the space that you're at.
00:20:23I think big headlong tail is a great model.
00:20:26Like charge the upfront and then just make
00:20:28the continuity much, much smaller.
00:20:30So it's a no brainer.
00:20:30Like they almost pay that just to be kind of in the network.
00:20:33And so this is, I'll just, I should have said this earlier,
00:20:36but it's like, I try to answer the question
00:20:38so that it affects as many people as possible in this room.
00:20:40But the problem with information and kind of quote coaching
00:20:43or education type businesses is that people try
00:20:47to make continuity out of the front end value
00:20:51that you're providing.
00:20:51And then the value drops once you have the skill.
00:20:55And so you have to separate out the consumables
00:20:57from the one-time things.
00:21:00The one-time things also have significantly more value
00:21:02than the consumables do.
00:21:03Now, sometimes they don't have the money
00:21:04to pay for the one-time thing
00:21:05because they don't have the skill
00:21:06the one-time thing would give them, right?
00:21:08That's kind of the issue.
00:21:09So in order to separate it, it's like,
00:21:11you just have to think,
00:21:12what are the things that they get on an ongoing basis?
00:21:14And if we only sold that, what would the price point be?
00:21:16Likely significantly lower.
00:21:18And if we got from that skill,
00:21:20it would be significantly more.
00:21:21But once they have the skill,
00:21:23assume they have the skill on the ongoing basis.
00:21:25What would they still pay for?
00:21:27Now you have the lead gen thing.
00:21:29- Really?
00:21:30I mean the lead gen.
00:21:31- Oh, everyone wants it.
00:21:32No one can deliver it.
00:21:33- When they learn how to sell using our process, they stay.
00:21:36- Okay.
00:21:37- So the biggest thing is just making sure they actually-
00:21:39- They just don't know how to close.
00:21:40- So it's like, it's activation as well.
00:21:42So like getting them to come in and actually engage
00:21:45because most advisors-
00:21:46- Is it all remote?
00:21:47- It's all remote.
00:21:48And they don't, they also don't like sales.
00:21:50Like the word sales,
00:21:51like they like cringe inside when they hear it.
00:21:54So we've literally like banned the word sales.
00:21:56Like we just say consulting.
00:21:58We don't call them sales calls.
00:21:59We call them consults.
00:22:00So like, you know, like that.
00:22:02But yeah, I'm just curious.
00:22:04- So it sounds like you just have to get better
00:22:06at training them?
00:22:07- Yeah.
00:22:08So your issue though,
00:22:10is that if someone gets activated, they stick for sure.
00:22:15- For sure.
00:22:16- Well then all of the effort we have
00:22:17is how do we get them activated, like better, faster,
00:22:20which is gonna be a function of two things.
00:22:21One is gonna be, are there some avatars that are better
00:22:25than others, right?
00:22:26So we only sell those avatars.
00:22:28And we split that into three buckets.
00:22:29You've got demographics.
00:22:30What do they look like?
00:22:32Right, you've got the quantifiable, which is like,
00:22:33what are the, what size business do they have, whatever.
00:22:36And then you've got the, I said demographics
00:22:41and there's quantifiable.
00:22:43There's a third one, I can't remember.
00:22:44But those two at least get you on a headstart
00:22:47in terms of segmenting the traffic.
00:22:48So you can be like, this is who the avatar is.
00:22:50These ones have a significantly higher likelihood
00:22:52of converting.
00:22:53And what'll happen when you do that is your CAC will go up,
00:22:56but then your stick problem will get fixed.
00:22:58- Okay.
00:22:59- So like, for example, if I sold everybody who identified
00:23:02as a fitness person,
00:23:03then Jim Walsh would never have been able to exist.
00:23:06Because I would have had too many shitty customers
00:23:08who are personal trainers, who've got 10 clients, whatever,
00:23:11and they can never pay and it doesn't matter what I do.
00:23:13And so for me to deploy the resources required
00:23:16to actually get them up to snuff,
00:23:18I have to have somebody who at their onset can pay more
00:23:21so that I can actually help them.
00:23:23- Okay.
00:23:23- Because below a certain extent, it just needs to be DIY,
00:23:25which is a different business,
00:23:26not the business I wanted to be in.
00:23:28So there's probably some advisors that are better
00:23:31that you need to basically scan out and say,
00:23:33all these people were not gonna service
00:23:34'cause they have a low likelihood of actually working.
00:23:36And maybe you need to adjust price
00:23:37to only accommodate those people
00:23:38and that newer avatar that's better.
00:23:40So this is becoming really an avatar issue.
00:23:42And then obviously the ops on the back end
00:23:43in terms of activation is what do,
00:23:45oh yeah, that's the third bucket, the behaviors.
00:23:47So what are the people who have the right demographics
00:23:50and the right quantifiable?
00:23:51What behaviors did they do
00:23:53that caused them to activate and stick?
00:23:55And what did the other people who look like them not do?
00:23:58And then that becomes the activation process
00:23:59we reverse engineer.
00:24:01- Makes sense.
00:24:02Quick last question.
00:24:03How did you optimize for time to value at your launch?
00:24:07And how can we potentially do something similar?
00:24:09As far as deal cycles are-
00:24:10- Yeah, we'd email their list,
00:24:11they make a sale in the first seven days.
00:24:13- Okay, so just reactivation.
00:24:14Okay, sweet, appreciate you.
00:24:16- If you are doing a million dollars or more a year
00:24:19and you'd like to get to 10 million or a hundred million
00:24:22dollars, I can promise you absolutely none of that.
00:24:25But what I can do is create an environment
00:24:28where you can actually talk to other business owners
00:24:30and players within those businesses
00:24:31that are doing those numbers.
00:24:33And for me personally, the big breakthroughs that I had
00:24:36in my business was when I came in with an open mind
00:24:38and was like, I don't know what I don't know.
00:24:40And so you probably have one of those,
00:24:42like how do I get my content to scale?
00:24:44How do I recruit these first salespeople?
00:24:45How to recruit my 20th or my sales by VP of sales
00:24:47or director of sales?
00:24:48Every single level of this game has more complexity
00:24:52than the last.
00:24:53And so if that sounds at all interesting,
00:24:54I'd love to invite you out to our headquarters
00:24:56for two days to talk to me and the team,
00:24:58director of sales, director of marketing,
00:24:59director of strategy, director of ops,
00:25:01director of investment,
00:25:02all the people who actually run our portfolio
00:25:05at acquisition.com.
00:25:06And as a bonus, all the other business owners in the room
00:25:09are doing a million dollars plus.
00:25:10And yeah, so this is your invitation.
00:25:11So if that's interesting, click book call.
00:25:13If it's a good fit, love to invite you out here
00:25:14and maybe see you in here in Vegas.