00:00:00thing in the past, and what you have done hasn't worked.
00:00:01Have you tried, have you, 'cause what we wanna do
00:00:03with the O is we wanna close all the other doors.
00:00:06Right, 'cause right now you're leaving a lot of doors open
00:00:08in the sales process.
00:00:09So you have to say, hey, if you're not gonna do this,
00:00:10what would you do?
00:00:11Well, I would do it at home.
00:00:14Well, do you have access to a pool?
00:00:15No, not really.
00:00:16Or I do, but it's like, when would, they say yes.
00:00:19You're like, okay, well, when would you do it?
00:00:22Would you have time to take them three times a week?
00:00:24And they're gonna be like, well, no, I don't have time
00:00:25to take them three times a week.
00:00:26And you're like, all right.
00:00:28So is it safe to say that there's no reasonable alternative
00:00:30for you right now?
00:00:32And you're like, yes.
00:00:33It's like, honestly, you're the perfect fit for what we have.
00:00:35Can I tell you a little bit about it?
00:00:36Yes, okay.
00:00:37So no one's ever walked you through the process
00:00:39of teaching a kid how to swim before, right?
00:00:40Right, okay, cool.
00:00:41So I'm making myself the authority right now.
00:00:44So there's three things that you have to do
00:00:46to teach the skills.
00:00:46So every kid needs to float, get to the wall,
00:00:48learn how to do help.
00:00:49That sounds obvious, but there's a big difference
00:00:51between people who succeed at doing that
00:00:52and the ones that don't.
00:00:53And the ones that do have three things in common.
00:00:55Number one is the right environment.
00:00:57So right now you're at home, it's distracting,
00:00:59or you go to a public pool.
00:01:00There's big kids doing cannonballs next to you.
00:01:02It doesn't work, right?
00:01:03Right.
00:01:04The second is you've got people who are just lifeguards
00:01:06off duty, have never really done this before,
00:01:08and they're not actually experts at training, right?
00:01:10You can imagine, let me think of an analogy.
00:01:13If I've got a high school kid who's just drawing,
00:01:17and then I've got a master artist,
00:01:18who do you think can teach someone how to do it better?
00:01:20Well, the master artist, of course.
00:01:21And not only can they do it better, they'll do it faster.
00:01:23And so the third thing is if you have the right environment
00:01:25and you have the right expertise,
00:01:27the next thing is you need the right process, right?
00:01:29You don't wanna have somebody who's doing this willy-nilly.
00:01:31Instead it's like a repeatable system to get someone from.
00:01:35Never been around a pool to you being a stress-free parent
00:01:38so you don't have to worry about doing a good job.
00:01:41Does that all make sense?
00:01:42Okay, great.
00:01:43So when did you want to have Timmy come in?
00:01:47- Summer.
00:01:50But yeah.
00:01:52- No, no, you want him ready by summer, right?
00:01:54So it'd be like you saying, "Hey, I wanna be 40 pounds
00:01:57lighter by summer."
00:01:58And I'm like, "Right, so we gotta start now."
00:02:00- Mm-hmm, yeah.
00:02:01- Okay, honestly, the best time to start
00:02:03would have been last month.
00:02:04So you're a little late.
00:02:05So again, we gotta move the anchor.
00:02:08So if someone says, "Hey, I'd rather come in the summer."
00:02:11It's like, "Honestly, sweetie, it's February."
00:02:14You should have been started in December.
00:02:15If you want him to miss the summer,
00:02:17he needs to start coming like tomorrow.
00:02:18So it's like, what's the first day this week
00:02:21you can bring him in?
00:02:24- Absolutely.
00:02:25- Right?
00:02:26And she says, "Whatever."
00:02:28And you're like, "Great, what card do you wanna use?"
00:02:31- Yeah, perfect.
00:02:35- And then you say, "Visa or MasterCard, whatever."
00:02:39And they're gonna say one of the two.
00:02:40You say, "Great."
00:02:41And then what's gonna happen is they're gonna start
00:02:42reading the card number.
00:02:43And you're like, "No, no, no, no, no.
00:02:45Actually, don't read the card number.
00:02:46It's fine, let's just keep it safe.
00:02:47I'm gonna send you a link right now.
00:02:49I'll stay on the phone line to make sure everything works out.
00:02:52Did you get it?
00:02:53Okay, cool, click that link.
00:02:54Go through there.
00:02:55Okay, you said you wanna do four little time.
00:02:58Great, one o'clock.
00:02:59Let me make sure that I see it on my end
00:03:00because the times go quick when we've got a huge amount
00:03:02of students that are actually just
00:03:04scheduling this on their own.
00:03:06Okay, I see you through.
00:03:07It's awesome, can't wait to meet you.
00:03:09I'll send you a text, a couple reminders before then.
00:03:11Make sure to bring floaties.
00:03:12Nice to meet you, Sarah, can't wait to meet your kids.
00:03:15- Yeah, awesome, that's awesome.
00:03:17Perfect.
00:03:18- It's just a sales issue.
00:03:21So you need to close on the phone.
00:03:23So take 'em through Closure, every step.
00:03:28Why are you here?
00:03:29This sounds like the problem.
00:03:30We close all the doors in Overview.
00:03:32What have you else have you done?
00:03:33Why haven't you done it on?
00:03:34Everything that they're gonna say.
00:03:35Why is it not okay for you to wait?
00:03:38Why can't you do this on your own?
00:03:40What are all the things they're gonna say?
00:03:41Well, my cousin could do it.
00:03:42No, it can't.
00:03:43Okay, cool, I think you're a good fit
00:03:44because you need to do it now.
00:03:46And the thing that you're missing is you need the environment,
00:03:48you need the expertise, you need the process.
00:03:49I don't like process, it's not my favorite.
00:03:51We need a third thing.
00:03:52It'd be nice if it was an E.
00:03:53But you wanna have three things that everyone needs
00:03:55and when you have those three things, you can't fail.
00:03:57Make sense?
00:03:58Great, let's get you going.
00:03:59- Okay, awesome.
00:04:01- It's just a sales problem, man.
00:04:02I wouldn't, what's your lead cost?
00:04:04- Probably like 12 bucks right now.
00:04:11- Okay, got it.
00:04:12And what's your average price?
00:04:13- 100 bucks a month.
00:04:16- And are you doing 100 bucks is the offer?
00:04:22- We've always just done month to month
00:04:24with a registration fee.
00:04:25- What's the registration fee?
00:04:28- Yeah.
00:04:30- What is it?
00:04:30- 40 bucks.
00:04:31- Man.
00:04:36In 12, how long does it take you to get a kid
00:04:40to be able to like float and not, you know, sink?
00:04:43I really shouldn't laugh about it.
00:04:47How do you get a kid to be proficient?
00:04:50- Yeah, usually a few weeks or so.
00:04:53Just 'cause it's 30 minute lessons
00:04:55and once a week for most parents.
00:04:56- Okay, can we just say 12 sessions?
00:04:58Can we say 12 sessions?
00:05:00- 12 sessions, yeah.
00:05:02- I mean, would you feel confident in saying
00:05:05that you let like 90% of kids
00:05:07to be totally good in 12 sessions?
00:05:08- Absolutely.
00:05:10- Okay, great.
00:05:11So let's just charge $600 to make sure
00:05:13that you don't have to worry about your kid drowning.
00:05:15And if your kid has, if you attend all the sessions
00:05:19and your kid has any issues at the end,
00:05:21I'll keep working with them until they float.
00:05:23- Okay.
00:05:26- That's your front end offer.
00:05:26- Perfect.
00:05:28Okay.
00:05:29- Now, what you do though,
00:05:30is that halfway through the front end offer,
00:05:32you say, hey, listen, Sarah has been amazing.
00:05:34I don't know if you've noticed that she can cry for help.
00:05:38She can float, she can get to the wall.
00:05:39She's amazing.
00:05:40They're like, oh my God, she's amazing.
00:05:41You're like, great.
00:05:42So the thing is, is there's a very big difference
00:05:43between not dying and being good in the water, right?
00:05:47And so we've accomplished level one,
00:05:48but what I wanna show you,
00:05:49this is now when you open the door,
00:05:51you say she's at phase one of our six phase process
00:05:53of kind of water mastery.
00:05:55And this is one of those things
00:05:56that if you've ever seen people
00:05:56who are just afraid of the water
00:05:58and they can't get used to it,
00:05:58we can take her from phase one to phase six,
00:06:01where she can have something she can have
00:06:02for the rest of her life and her ability.
00:06:04She can play, you know, she can go to parties.
00:06:05She can go to the ocean.
00:06:07Like how long does it take him to get like ocean ready?
00:06:10What's that?
00:06:11How long does that take?
00:06:12Genuinely, I have no idea.
00:06:13I'm sure it's a long time.
00:06:14- Yeah, like 30 to 50 hours.
00:06:17- Perfect.
00:06:18Exactly.
00:06:1930 to a hundred sessions, or 60 to a hundred sessions.
00:06:22Love that for us.
00:06:23And so it's like, great, we're gonna,
00:06:24that's what we sell halfway through.
00:06:26You take your five or 600 bucks
00:06:27and you credit that towards the next 30 to, you know,
00:06:31whatever, however many sessions you want,
00:06:32and you take it off the top.
00:06:33So that becomes the $2,500 offer on the back
00:06:36and you credit your five or 600 onto it.
00:06:38And then just downsell time from there.
00:06:40And so if they're like, why can't do the whole thing?
00:06:42It's like, no worries.
00:06:43Why don't we just get you through phase two?
00:06:46- Mm-hmm.
00:06:47- Does that make sense?
00:06:48- Yeah, let me see.
00:06:49Yeah, that is all amazing.
00:06:52Perfect, thank you.
00:06:53- Do you think you can do that?
00:06:54- Yep, and I will make it happen.
00:06:57- Okay, say back to me what the changes are.
00:06:59- We're gonna make sure I'm going through
00:07:05the closer framework and everything,
00:07:06which I think part of it was that
00:07:09I'm used to like very hot leads who are calling us
00:07:11instead of a phase two.
00:07:12- Oh, dude, you've never sold before, man.
00:07:14- No.
00:07:16- Yeah, you've never sold.
00:07:17- Never.
00:07:18- Referrals don't count.
00:07:18You've never sold.
00:07:19It's okay.
00:07:20- Mm-hmm.
00:07:22- The fact that you got five is still great.
00:07:23I think you, honestly, you think you'd be at 15 or 20.
00:07:26And that would, and if you got 600 on all those,
00:07:28you'd love life, right?
00:07:30- Mm-hmm, yeah.
00:07:31- You'd be making 12 grand on your $1,400 ad spend.
00:07:33That's up front.
00:07:34That doesn't even include back end.
00:07:36- Mm-hmm.
00:07:37- Now when they come in, do you sell them anything?
00:07:38Do you sell them floaties or a kickboard
00:07:40or like any of that other, goggles,
00:07:41any kind of special stuff?
00:07:43- Yeah, we basically have to pick up
00:07:46our stuff every day at the end of class.
00:07:49And so we have to pack everything away
00:07:51so we don't have anything cool.
00:07:53- Well, I want you to have something,
00:07:54so think about kids' karate, right?
00:07:56They've got a gi, kickboxing has gloves, they've got belts.
00:07:59I want you to have something.
00:08:00So maybe it's like swim cap, a couple pairs of shorts
00:08:03that are like branded for your thing
00:08:05so they feel like they're part of the group.
00:08:07And then you can have them buy that as a one-time thing
00:08:10'cause the kid might want it.
00:08:11It'll just give you an easy upsell on the way
00:08:13to offset some cost of acquisition.
00:08:16- Mm-hmm.
00:08:17- So you're gonna take more phone sales.
00:08:19You're gonna try and close them on the phone.
00:08:21You're gonna send them the link and tell them
00:08:23that you're gonna wait until they buy
00:08:25and make sure you confirm it on their side.
00:08:27When you're going through the sales process,
00:08:28you go C-L-O-S-E-R.
00:08:30Clarify whether you'll label them,
00:08:31"Hey, you need this or your kid's gonna go away.
00:08:33"We have to anchor around time.
00:08:35"Hey, you should've done this.
00:08:36"You should've started two months ago.
00:08:37"So now it's already late, so we gotta get going.
00:08:39"How soon this week can you come in?"
00:08:42So we anchor around urgency.
00:08:43Oh, we have to close all the other doors.
00:08:46We gotta say you can't do it on your own.
00:08:47You can't do it with your sister.
00:08:48You can't do it with all these things
00:08:49'cause none of them are gonna work
00:08:50'cause you've already said you haven't done it.
00:08:52Great, I think you're a good fit.
00:08:53There's three things you need,
00:08:54environment, expertise, and process.
00:08:56That's what we're gonna do.
00:08:57And you said you wanna get your kid floating.
00:08:59I'll guarantee that they're gonna not float
00:09:01by the end of the 12th session.
00:09:03If they're not, I'll keep working with them 'til they do.
00:09:05All you gotta do is show up.
00:09:06Which means that when you, and you can translate,
00:09:10which means that when you pay this money,
00:09:11you don't have to think about it again.
00:09:12Your kid'll float.
00:09:15As long as you show up.
00:09:16Cool?
00:09:18- Yeah, yep.
00:09:20- Don't worry, you can watch the recording.
00:09:22All right?
00:09:23All right.
00:09:24I'll get you later, man.
00:09:25Appreciate you.
00:09:26- Appreciate you.
00:09:27- See you, bud.
00:09:28All right.
00:09:31Let's fucking go.
00:09:33Who here was worried about the lag?
00:09:37I was lagging myself.
00:09:38You know what's the real real is that
00:09:40that wasn't a lag.
00:09:41That was just me.
00:09:46(mumbles)
00:09:48That was actually, I just did that for like 10 minutes.
00:09:51Okay, who's up next?
00:09:53Who's on first?
00:09:54(mumbles)
00:09:57Lofty ambitions to be achieved,
00:10:01a country with socialist and communist system.
00:10:04I think if you bribe people, yes.
00:10:05Sir, I'm broke.
00:10:10I read $100 million textbook,
00:10:11but I don't have any idea about the product.
00:10:14Passion, profession.
00:10:15Should we get somebody on?
00:10:16We good?
00:10:17All right, let's go.
00:10:18It's up to pace.
00:10:20Let's go.
00:10:21Revenue, what you sell, what the problem is.
00:10:25Strong silent type.
00:10:31I can appreciate that.
00:10:33A stoic, if you will.
00:10:35They're like, I don't want to tell you what my problems are,
00:10:37nor my revenue.
00:10:38When is $100 million sales coming?
00:10:43Oh, it will be quite dirty, Abdullah.
00:10:46Abdullah Tahir, it will be, it will be nasty.
00:10:48How do you research an industry
00:10:49and know its parameters for acquisition?
00:10:52You can actually, you just literally just Google it
00:10:53and look at even multiples.
00:10:55But at the end of the day, someone here?
00:10:57Can someone hear me?
00:10:59- Yes.
00:11:00- All right, let's rock.
00:11:01Revenue, business, and problem.
00:11:04- My name is Matthew.
00:11:07I sell premium catering experiences to private clients
00:11:10looking to celebrate milestone events in Sydney.
00:11:13- Great.
00:11:14- We do about $2.8 million this year with 40% net profit.
00:11:17I would like to be at $8 million in two years.
00:11:18- Let's go.
00:11:19- The main constraint sees Natalie.
00:11:21So we do about 65% of our annual revenue in six months.
00:11:24And if I don't solve this,
00:11:26I either say no to demand in summer
00:11:28or I am supply constrained in, sorry,
00:11:31or I am overstaffed in winter.
00:11:34- Yeah.
00:11:35So one thing right off the bat I will say
00:11:38is that this is a feature, not a bug,
00:11:40of the industry that you're in, right?
00:11:41Same thing as lawn care guys, same thing as guys
00:11:43who do snow plowing, it's a super common thing.
00:11:46Swimming pools sometimes, obviously, in the summer.
00:11:48So there are industries that are just going to be
00:11:50more smoothies if you, summer versus Italian ice store,
00:11:53like there's a lot, right, that are seasonal.
00:11:56Now, couple questions.
00:11:58So catering, what is your hot season again?
00:12:01- Busy season.
00:12:05- Yeah, what is the busy season?
00:12:07- Pretty much September through February.
00:12:12- Okay.
00:12:13And so from now until September is when it's slow.
00:12:16- Yes.
00:12:19- So why are people not celebrating from now until September?
00:12:22Actually, I'm not even sure.
00:12:26- It's not the festive season.
00:12:28I think, yeah, it's not as much of a festive season.
00:12:31I think people don't spend as much money
00:12:33going through winter.
00:12:34I don't think any of that has to do with--
00:12:37- But you still have like--
00:12:38- For me in general.
00:12:39- Don't worry about the economy.
00:12:41Whatever, I would just remove economy from Lexington.
00:12:44There's nothing you can do about it.
00:12:45So, okay, so people don't do Easter,
00:12:48you don't do corporate events.
00:12:49- We do do corporate, yes.
00:12:52So we target corporate through winter.
00:12:53More so, they have better last time value,
00:12:55but they have lower spend per event,
00:12:58which lowers gross profits.
00:12:59So we do market more or less exclusively to private.
00:13:03- Okay.
00:13:04I'm just like, it actually doesn't sound like
00:13:06you're actually in that seasonal of a business.
00:13:07People have like,
00:13:10I mean, I started with that,
00:13:11but like catering happens year round.
00:13:13I mean, shoot, I cater every single week.
00:13:15- Yeah, so we do large events.
00:13:19So typically kind of 60 to 100 people.
00:13:22And then the like birthday parties,
00:13:24engagements, weddings, they're all year round.
00:13:26But a lot of the corporate rush that comes through in summer
00:13:29for end of year staff parties, things of that nature,
00:13:33that's what it takes us like well beyond our capacity,
00:13:37which gives us that busy season.
00:13:39And then through winter, we just, we lose a lot of that.
00:13:41- You subsist in the off season.
00:13:44Correct?
00:13:47You like lose money or break even in the off season?
00:13:49- No, no, we're still profitable.
00:13:51We have a really good,
00:13:52we have strong gross profit and strong margins.
00:13:54So we're still good.
00:13:55I just like to make more money.
00:13:57- Yeah, okay.
00:13:58Got it.
00:13:59Okay, so a couple of things.
00:14:00So currently, how are you getting customers?
00:14:04- We have really strong organic SEO
00:14:08and we also do a lot of Google ads.
00:14:12- Okay.
00:14:13- That's the most, that's the main channels.
00:14:15So we have probably 50% organic,
00:14:18probably 40% organic, 40% ads, 20% for real.
00:14:22- Okay.
00:14:22- Just in top of all metal, but it's less tracked.
00:14:25It's more of a brand awareness.
00:14:26- Got it.
00:14:27So SEO and PPC kind of rule the day.
00:14:31Okay, so what stops you from spending more PPC?
00:14:34Are you maxed out?
00:14:35Like, is it stopping profitable?
00:14:36Like, what's stopping you there?
00:14:39- Search volume and late quarterly drops through winter.
00:14:43- Okay.
00:14:45- Back to LTV, still strong, we're at a 12 to one.
00:14:47So we can just spend more.
00:14:49I'm trying to find, I guess my constraint or my question.
00:14:53My main question becomes,
00:14:56I have considered popping up a corporate delivery,
00:15:00like a pre-packaged typical corporate catering setting
00:15:05through to be a kind of NC under catered by Matt,
00:15:08which would be a year round service
00:15:10'cause they have a very inverted seasonality
00:15:13to the event side.
00:15:14- Yeah.
00:15:15- We're like the corporate to order in more of that delivery,
00:15:17but it's, I don't want to get distracted.
00:15:19Like I'll watch all your content.
00:15:21I don't want to chase the woman in the red dress.
00:15:22- Yeah.
00:15:23- 'Cause it's a whole new business.
00:15:24- Yeah.
00:15:25Well, I guess the problem that we're trying to solve here,
00:15:28like you are profitable.
00:15:29You're running 40% even in the fact
00:15:31that there's on and off cycle.
00:15:33So to grow the business,
00:15:35we can ignore the fact that it's lumpy.
00:15:36I'll give you two examples of this.
00:15:38So Harry and David's,
00:15:40it's a chocolate company here in the US,
00:15:42does like 100% of their annual profit
00:15:45in the month of December.
00:15:46And then the other 11 months of the year,
00:15:49they have their mall location and they just lose money.
00:15:52That's number one.
00:15:55Others, if you look at like insurance, right?
00:15:58Insurance makes money every year.
00:16:01And then every eighth year there's a Hurricane Katrina
00:16:03and they lose a bunch of money.
00:16:05And so I think what we need to replace
00:16:07is the difference between volatility and risk.
00:16:10So you can have something that is volatile, but not risky.
00:16:12So insurance is volatile, but not risky.
00:16:16Same as this chocolate thing.
00:16:18It's volatile in the fact that it changes a lot
00:16:20month to month to month,
00:16:21but it's not risky because it's predictable.
00:16:22You know that every season this is going to happen.
00:16:25And so if we know it's going to happen,
00:16:26then we can predict it.
00:16:27If we can predict it, we can plan for it, right?
00:16:28So all that to say,
00:16:31if we change nothing about the business,
00:16:33but you simply did twice as much,
00:16:34what stops you from doing that?
00:16:36- Nothing.
00:16:40- Okay.
00:16:43- Everything's quite efficient, to be frank.
00:16:45We can just spend more, hire more.
00:16:47- Well then I think you have that answer.
00:16:50I think what feels annoying is you just wish that,
00:16:53you know, if you're Harry and David's,
00:16:54you wish that the other 11 months of the year,
00:16:56people celebrated chocolate as much, right?
00:16:59But you're just going to have a slow season and a hot season
00:17:02and that's fine.
00:17:03Especially since you're not losing money in the off season.
00:17:06So I don't think you actually have a big problem
00:17:08to solve here.
00:17:09I think we just need to do more of what's working.
00:17:10I wish I could pull some magic business model out of a hat,
00:17:16but if you're profitable all the months of the year
00:17:18and then some months you just make more money,
00:17:20that just sounds like a business
00:17:21that has a predictable cycle.
00:17:22- Right.
00:17:27- I mean, think about the alternative.
00:17:28It could be unpredictable.
00:17:29That would suck.
00:17:31- Yeah. No, it's almost predictable to the extent,
00:17:35to be honest, it's pretty consistent.
00:17:37I've been trying to contemplate how to get around this
00:17:40without actually starting a new business.
00:17:42And I've been thinking about it for a couple of years.
00:17:44I thought maybe Alex would figure something out,
00:17:46but maybe it's just that, hey, it's just a feature.
00:17:48- No, what I would like to do is just focus all of your time
00:17:51on not trying to solve that problem
00:17:52and solving the more important problem,
00:17:53which is like, how do we double PPC
00:17:55and probably get meta ads going?
00:17:59Like, if you did nothing else this year,
00:18:01doubled PPC and just cracked meta ads,
00:18:04you'd hit your goal.
00:18:05- Yeah.
00:18:10- So it's like, if you can double the business
00:18:11doing one thing, why do four?
00:18:12- Yeah, to say.
00:18:15- Right?
00:18:16- Yeah.
00:18:18- That's it, man.
00:18:19I mean, the whole point of Theory of Constraints is focus.
00:18:21And it's just being able to say all the things
00:18:22you say no to.
00:18:23Like, there's such limited resources in a small business,
00:18:25the biggest one being your time, your effort,
00:18:27and your mental bandwidth.
00:18:29If you can just say, like, I'm not looking at this anymore
00:18:31because this is just a feature of my business,
00:18:33and I'm so grateful because all my competitors
00:18:35will be distracted by the shiny object.
00:18:37Like, let them worry about that
00:18:38while you just keep crushing it.
00:18:40And them.
00:18:42- Okay.
00:18:44- Cool?
00:18:45- Yeah, cool, thank you.
00:18:46- Appreciate you, man.
00:18:47Congratulations.
00:18:47- Thank you.
00:18:50- All right, thanks, brother.
00:18:51Talk soon.
00:18:52- Bye-bye.
00:18:54- Toodaloo, to Rio, as they say.
00:18:57Also, for those of you who were in the chat
00:18:58who asked how you get on the calls,
00:19:00these are people, these lovely business owners
00:19:04are business owners who bought a mega bundle of books
00:19:08during my last book launch.
00:19:10And they're in a community on school right now,
00:19:12which has been closed to the public and opens up March 1st.
00:19:16And so I select people from that community.
00:19:19It's for million dollar plus business owners.
00:19:20If you want to check it out, you can go to school.com/acq.
00:19:26You can join the wait list, it opens up March 1st.
00:19:29All right, Kala, what's up?
00:19:33Big Bala.
00:19:33- Hi, hi, Alice.
00:19:36My name is Dr. Ann Truong.
00:19:38And so I'm a medical doctor.
00:19:41We specialize in sexual health.
00:19:43And currently we're at 3.8.
00:19:48Would like to get to 10 mil or more a year.
00:19:53And so what is stopping us is that we,
00:19:58I use your AI and it says that we don't have
00:20:03a traffic problem 'cause all my traffic come from YouTube.
00:20:07It's really more of acquisition problem.
00:20:12And so after talking to you a few months ago,
00:20:15we started putting in our application.
00:20:18So we have a funnel as an application with questions
00:20:22how to qualify and disqualify.
00:20:24And then through a calendar,
00:20:27which then schedule with our sales team.
00:20:30So what happened was that we ended up getting
00:20:32a lot of disqualified applicants,
00:20:35which we then downsell supplements
00:20:43for an online coaching program.
00:20:46But that doesn't make as much money
00:20:48as our in-office treatment,
00:20:49which is from 15,000 to 20,000 as well,
00:20:53which we really want to focus on.
00:20:56So the question is like, are we doing something wrong
00:21:02in that application process?
00:21:05How can we get more qualified high ticket applicants
00:21:08to the sales call?
00:21:14- Okay, two things.
00:21:15- So what we have trouble in the past was that
00:21:17we had too many in the sales call that weren't qualified.
00:21:20Now we don't have enough and how do we fix that?
00:21:24- You're saying you don't have enough?
00:21:26So you added friction and you have disqualified people
00:21:29who are booking.
00:21:30Did the percentage of qualified people go up
00:21:34when you added friction or down?
00:21:35- Oh no, go down.
00:21:38- The percentage went down?
00:21:39So you got more unqualified people
00:21:41by adding friction to your process?
00:21:43- Yes.
00:21:45- That makes no sense.
00:21:47- Yeah, well, we just put in filters that's like,
00:21:52you know this is not insurance covered.
00:21:55You know, this is the price and they could know
00:22:00what, you know, they don't want to move forward.
00:22:04So that would disqualify it.
00:22:06That was the only two disqualifiers we had.
00:22:08That was it.
00:22:09- But those people got disqualified
00:22:10so you didn't have to talk to them.
00:22:12- Well, they get disqualified.
00:22:15They don't see the calendar to schedule it ourselves.
00:22:19- That's good, right?
00:22:20That means the percentage of qualified on the calendar
00:22:22went up, right?
00:22:24- Well, you know, compared, no, not necessarily.
00:22:32- How, hold on, what are we talking about here?
00:22:34No, no, listen to me, listen to me.
00:22:36How is that possible?
00:22:38If you say there's a hundred people,
00:22:40half of them are disqualified,
00:22:41they hit the disqualified button,
00:22:42then half of them that come through
00:22:43are not disqualified anymore.
00:22:44That means the percentage goes up.
00:22:45I want to make sure we're talking about reality here.
00:22:47Like, are we on the same page?
00:22:48Percentage went up, not absolute, percentage.
00:22:51Yes?
00:22:53I want to help.
00:22:53You're just making my job, Mark.
00:22:54So percentage went up, correct?
00:22:56- Yeah.
00:22:58- Okay, percentage went up.
00:22:59So are we saying that the absolute amount went down?
00:23:02- Yeah.
00:23:04- Great, now of the people that did show up to the call,
00:23:06were they more qualified than before?
00:23:11- Well, you know, our close rate went better.
00:23:14- Okay, so the quality went up.
00:23:16- Yeah.
00:23:19- Okay, so the reason I'm orienting you
00:23:20is so that we can actually solve the input-output problem.
00:23:23So you had too much flow, we added friction,
00:23:26that increased the quality of the throughput,
00:23:28but then it decreased the amount,
00:23:29which means mission accomplished.
00:23:31The next thing we have to do is drive more in the front end
00:23:34so that we can have a higher absolute amount of throughput
00:23:37that's all quality, right?
00:23:40- Yeah, that makes sense.
00:23:41- Okay, two options.
00:23:43You can do them both.
00:23:44Option number one is that the type of content
00:23:47that you're making needs to better cater
00:23:50to the avatar that you're looking for.
00:23:52- How do I know that?
00:23:56How do I find that out?
00:23:58- Well, one, the easiest thing you can do right now
00:24:01is email all of your existing customers
00:24:03and give them some sort of prize,
00:24:05some sort of give away something to get them to respond
00:24:07and say, hey, what piece of content you come in on
00:24:11or what type of content, if that's easier,
00:24:13and you can have probably four or five buckets
00:24:15of content you currently make,
00:24:16and they will tell you which one it was.
00:24:18On the sales call, you can also add a question,
00:24:22what type or what video got you here?
00:24:25'Cause that'll start orienting what type of thing.
00:24:28Now you're also in person.
00:24:29So like when I ask people who show up
00:24:30at a workshop here in person, I say, hey,
00:24:32what type of content do you like?
00:24:33If I say, hey, do you like a brutally honest video
00:24:35that's about mindset, things like that,
00:24:37there's a certain percentage that are there.
00:24:38But if I say, hey, do you like the cash guys video
00:24:40where I do a breakdown of the businesses,
00:24:41the entire room's hands raise.
00:24:43And that's a room where the average person
00:24:45is doing $4 million a year.
00:24:46Those videos do less views than me talking
00:24:49about general mindset stuff,
00:24:50'cause it's just a smaller audience.
00:24:52- Gotcha, I know what they're talking about.
00:24:58- Yeah, so number one--
00:24:59- Email the list.
00:25:00- Yes, to figure out what type of content
00:25:03translates to quality, not quantity.
00:25:08- Okay, that's thing one.
00:25:10And then thing two, and you're YouTube,
00:25:12mostly used to YouTube, correct?
00:25:13- Yes.
00:25:15- Okay, got it.
00:25:16You're, how big is the following you have on YouTube?
00:25:20- 150,000.
00:25:25- Okay, it's probably big enough.
00:25:27Have you run meta ads before?
00:25:28- We did.
00:25:32We ran meta ads and the applicants weren't qualified,
00:25:35so we kind of stopped doing that.
00:25:37We're trying to do YouTube retargeting ads
00:25:42to the people that watch my video,
00:25:44and then we got shut down by Google in three days.
00:25:46- 'Cause it was sex related, right?
00:25:49- Yeah.
00:25:50- Yeah, so I think that if you audit your page
00:25:52to make sure that it's compliant,
00:25:54and try and relaunch it, that's probably a good idea.
00:25:57The retargeting is gonna be kind of a low-hanging fruit,
00:26:00'cause these are people who already clicked over there,
00:26:02and so that's just gonna nudge them along the funnel.
00:26:04But the real unlock for you is going to be paid ads
00:26:07on either meta, or YouTube, or both.
00:26:09I think that meta will be easier for you to crack,
00:26:11even though you have a YouTube audience,
00:26:13because those people also have
00:26:15Instagram and Facebook accounts.
00:26:16And I'm gonna bet that when you ran the meta ads before,
00:26:21was that before you did this process of adding friction?
00:26:24- Yes.
00:26:27- Right, so it makes sense.
00:26:28So you ran basically open targeting
00:26:30to something that had no funnel for friction.
00:26:33We now have fixed the sales process,
00:26:35so we fixed that problem.
00:26:36Now we have to fix the traffic problem.
00:26:38So we're gonna increase the quality of the traffic
00:26:40with the type of content you're making,
00:26:42and we're gonna increase the quantity of traffic
00:26:44by soliciting the audience more times and more places
00:26:46by running ads on meta and YouTube.
00:26:48And running them through our now,
00:26:50better converting process by percentage.
00:26:52- Okay, so you feel that meta is appropriate?
00:26:57- Yeah, 100%.
00:26:58People who are there, well, I think it'll be easier.
00:27:01And meta is easier for people to crack
00:27:03when they're starting.
00:27:04- Okay, got it, yeah.
00:27:08- And then run them through the same funnel.
00:27:09And let me tell you the type of content that you should use.
00:27:11So do you make shorts?
00:27:12Okay, find the shorts that are save-worthy
00:27:19rather than share-worthy.
00:27:21All right, so the type of things that are like lists
00:27:23of processes and stuff, stuff where you really teach stuff
00:27:26that did medium well, those are typically going to be
00:27:29the ones that have the highest purchase intent.
00:27:31Do you have an Instagram?
00:27:32- Yes, we do.
00:27:34- Do you post your reels there?
00:27:36- It's really repurposed shorts.
00:27:40- Yeah, that's fine.
00:27:41That's fine.
00:27:42- My long-form content to Instagram.
00:27:42- That's fine.
00:27:44When you look, I want you to look at the last year.
00:27:47Look at the one that has the highest saves to likes
00:27:50percentage, so the most saves.
00:27:53And run the top 10% of those as ads on meta,
00:27:57and then direct them down the funnel that we just fixed.
00:28:00And if you want, do people fly in for your services or no?
00:28:04- I'm sorry, what's the question?
00:28:07- Do they fly into your services?
00:28:09- Uh-huh.
00:28:11- Okay, then fine.
00:28:12You can run it national.
00:28:13- Yeah, they come from all over.
00:28:18- Great, then yeah, you can run it as a national play.
00:28:21Yep, run it as a national play.
00:28:22- Okay.
00:28:25- Great.
00:28:25- Yeah.
00:28:26- All right, now we have the next one.
00:28:27Yeah, perfect.
00:28:28You got this.
00:28:29- Thank you so much.
00:28:32- You bet.
00:28:33All right, we'll talk soon.
00:28:34Good luck.
00:28:35I'll see you on the inside of the group.
00:28:36All right.
00:28:37See you.
00:28:38All right.
00:28:42Let's roll.
00:28:46Rock hard.
00:28:47Pun intended.
00:28:48Whoo, we had to get there.
00:28:53We had to get there.
00:28:54All right, caller.
00:28:56What's your revenue?
00:28:57- Am I up, this is Reed's.
00:29:01- Say it again.
00:29:03- This is Reed's, am I up?
00:29:06- Reed's, you're up, man.
00:29:08Give me the rev.
00:29:09The rev, the prob, and the business.
00:29:12- All righty, we are a data consulting company
00:29:16that sells services.
00:29:17We do about 500K.
00:29:19I'd like to get the 1.2 million.
00:29:22- Okay.
00:29:23- Our biggest issue is leads, leads, and leads.
00:29:26And then making them see the message
00:29:29and reflect it a business problem that they recognize.
00:29:32- Okay, how are you getting leads right now?
00:29:35- It's been 99% referral till about,
00:29:41it's still 99% referral, but I have now turned on,
00:29:44I'm doing content on LinkedIn.
00:29:47I'm doing LinkedIn ads.
00:29:48I'm doing a cold email that I'm trying to start.
00:29:53It's not started, but I'm trying to do that as well.
00:29:56So right now, for the last 12 years,
00:29:58I've run my company off referrals.
00:30:00I haven't really sold anything.
00:30:02So my question is, is really around the best way
00:30:06to generate leads from a tech source
00:30:08that the message is really hard.
00:30:10I mean, selling data, services,
00:30:13no one thinks they need it.
00:30:14Everyone thinks they need AI now.
00:30:16Luckily, I think a couple webinars ago,
00:30:19you had said, somebody asked you a question about AI,
00:30:22and he said, "You need a good architecture."
00:30:23- You need a data infrastructure.
00:30:24- And I was, yes.
00:30:26- You were like, "Can I clip that?"
00:30:27And we were like, "No, you can't."
00:30:28(laughs)
00:30:30Yes.
00:30:33Okay, so what size companies are you selling?
00:30:36- I'm trying to do mid-tier, around 500 people.
00:30:43I worked for--
00:30:44- It's all enterprise.
00:30:45So it's all enterprise.
00:30:46- Enterprise, but it's so hard to actually
00:30:50make a difference there.
00:30:51There's so much overhead and trouble.
00:30:54- And trouble.
00:30:55Okay, got it.
00:30:56So functionally, what is the dollars and cents output
00:31:00of what you do?
00:31:01Like, I pay you money, what money do I get back,
00:31:03and how do I make it back?
00:31:04- Some of the stuff, like we can help you with cloud,
00:31:08reduce your cloud costs, so you can reduce costs.
00:31:10That can be pretty great, but it can be from,
00:31:15I don't know, 10,000 to a hundred, couple hundred thousand.
00:31:18- Okay.
00:31:19How do you charge?
00:31:20- The systems around would, say that again?
00:31:22- How do you charge?
00:31:23- Hourly.
00:31:26- Hourly?
00:31:26- Hourly consultants.
00:31:27- Oh, oh, oh, oh dear me, my god.
00:31:32Let's just get you to 1.2 million
00:31:35and get you no more customers and just change how you bill.
00:31:37How about that?
00:31:37- I could handle that.
00:31:40- Okay, so a couple things.
00:31:42So number one, I think you making content on LinkedIn
00:31:45is a good idea.
00:31:46I think that you should talk, like, data no one cares about.
00:31:50I mean, yes, people care about it,
00:31:52but no one's like waking up in the morning,
00:31:56being like, oh, give me my data.
00:31:57I mean, I'm that way, but I'm an oddball.
00:32:00What we wanna talk about is the benefit of data, right?
00:32:03We don't wanna talk about the plane flight.
00:32:04We wanna talk about the vacation.
00:32:05We talk about Maui, not how we're gonna get there.
00:32:07The TSA, checking our bags, taking our shoes off.
00:32:09That's the data.
00:32:10What the data gets us is what we gotta talk about.
00:32:11So your content needs to be taught,
00:32:13like what you should be doing in your content
00:32:14is the demonstration of what occurs
00:32:17as a result of your services.
00:32:21- And that's where a lot of the content is around ROI.
00:32:24So I'm trying to drive that
00:32:27because for the longest time, I targeted tech people.
00:32:30The tech people never had buying hours,
00:32:33so it was always impossible to go.
00:32:35So now I'm trying to talk at a higher level
00:32:36of the turn on investment
00:32:38because so many people do so much tech stuff
00:32:40that just doesn't provide any value to the business
00:32:44'cause they don't think they have to see the tech side.
00:32:47That's why I'm trying to not talk to those guys.
00:32:50- Yeah, so ROI content, number one.
00:32:52I think that you should have CTAs in the content
00:32:54that generate increase that should get people to,
00:32:57like do you give away a widget or an assessment of any kind?
00:33:00- On the website, I'm trying to do a data ROI meeting
00:33:07so I can kind of give you that kind of information.
00:33:09- Let me give you a really sexy thing.
00:33:11Let me give you a really sexy thing.
00:33:12I want you to give away five--
00:33:14- Is this industry?
00:33:15- Oh yeah, no, this is gonna be sexy.
00:33:17I want you to give five one-on-one calls
00:33:20away for free as the offer.
00:33:22- Okay.
00:33:25- Now there's an asterisk there
00:33:26that it's only for companies that meet your criteria.
00:33:29- Okay.
00:33:31- And you probably have to take those calls anyways
00:33:32for a qualified lead but the fact that,
00:33:33the thing is for you to have a very high value lead magnet,
00:33:36I think so many of these are gonna be so specific
00:33:39to the tech stack they're using and all the other nonsense
00:33:41that we have to come up with something
00:33:43that people can appreciate as valuable.
00:33:45And so we say hey, I'm gonna give away five one-on-one calls.
00:33:47Everyone understands that five hours
00:33:49or five 30-minute sessions is value.
00:33:51Like even at the most basic manual labor level,
00:33:54there's value there that someone can get.
00:33:56And so I think the CTA of that will be a great way
00:33:58'cause then it'll give you five conversations.
00:34:00You can tie in multiple stakeholders
00:34:01and you can actually look at an enterprise-style sale
00:34:03and it all works.
00:34:04All you have to do is set the frame
00:34:05at the beginning of this just like hey, to be clear,
00:34:08are you good with me?
00:34:09As we walk through these five calls,
00:34:10at the end of the fifth call,
00:34:11I'll explain kind of how what working with us might look like.
00:34:13In the meantime, I want to just provide you
00:34:14with a lot of value.
00:34:15They're gonna say yes and it's great
00:34:17and that sets up the conversation
00:34:18so that you can't break their beliefs around it.
00:34:20The big step here is that we want to take those calls
00:34:23to talk about what is going to happen,
00:34:25not how to do what is going to happen.
00:34:28Do you get the difference?
00:34:29- Yes, yes.
00:34:31- Right, exactly.
00:34:32We're gonna describe it, not explain it.
00:34:33And that's how you reset beliefs.
00:34:37That's how you get people excited about what's gonna happen.
00:34:38As soon as you get into like we're gonna click here,
00:34:40they're gone, they don't give a shit, right?
00:34:43So number one--
00:34:44- Oh, I've got that with my LinkedIn ad.
00:34:45- Yeah, so number one, ROI content.
00:34:48CTA is five one-on-one calls.
00:34:50Asterisk only for people who qualify.
00:34:52The second thing is that I think your offer
00:34:55needs to be around the ROI
00:34:56and you need to use something called a calculator close.
00:34:58So calculator close basically says,
00:35:00here's all the things that you're currently doing,
00:35:02which you can do at the end of the five one-on-ones
00:35:04and say based on the whole assessment that I have,
00:35:06here's all the areas that you're losing money
00:35:07or that you could have efficiency.
00:35:09This is what I expect you to make.
00:35:10You add it all together and say it's, you know,
00:35:13$200,000 is the savings slash, you know,
00:35:16improvements in efficiency and effectiveness, whatever, right?
00:35:18So $200,000, the max that you can charge
00:35:21when you make any kind of result-based service is 30%.
00:35:25And so if you say, hey, I'm gonna save you 200 grand,
00:35:28I charge 30% of what I save, so it's 60.
00:35:30But that way you're charging for outcomes, not hours.
00:35:35- Okay.
00:35:37- And that'll break it,
00:35:37and that's what's gonna allow you to really,
00:35:38I mean, that alone might triple or quadruple your income,
00:35:41independent of the ROI stuff.
00:35:44Those would be the two next steps that I would do.
00:35:46- Okay, thank you.
00:35:50- You bet, thank you, man.
00:35:51Congratulations on the business.
00:35:53- This has been very, very, very helpful.
00:35:56I really appreciate it.
00:35:57Thanks a lot. - No, you bet.
00:35:58Thank you for being part of the group.
00:35:59All right, Rehard, Vandenberg.
00:36:05That's a great name, Vandenberg.
00:36:07How much do I have to pay for that time?
00:36:09It would be free, if you're a qualified lead.
00:36:13Joel, Jesus, 40, 36.
00:36:15I love this.
00:36:195-101 calls is a bit too much.
00:36:20If you have no leads, what are we talking about?
00:36:23If you get to the point where you're like,
00:36:25oh my god, I don't have time to do these 5-101 calls,
00:36:27guess what, we solved the fucking lead problem.
00:36:29All right.
00:36:31All right, we got somebody up.
00:36:35What would it take to become a luxury real estate developer
00:36:37as an artist with no capital? Hello?
00:36:39- Hi. - Hey.
00:36:43All right, revenue, business, and problem.
00:36:46Let's rock.
00:36:47- I can tell you that.
00:36:49I mean, I teach crafters.
00:36:50I'm mostly women, 45 plus.
00:36:53- You teach crafters?
00:36:54- For themselves.
00:36:55Crafters make stickers, stickers.
00:36:59- Okay, love it.
00:37:00I love this. This is great.
00:37:02Okay.
00:37:02- They're making stickers for themselves
00:37:04or for their family or to sell.
00:37:05- Right.
00:37:06- So my business is made,
00:37:07it did over seven figures last year.
00:37:09- Good for you.
00:37:10- And they're all low ticket.
00:37:11- Good for you.
00:37:12- Thank you.
00:37:13- Okay, so you made a million plus.
00:37:15Okay.
00:37:16- Yes.
00:37:17- Amazing.
00:37:18- I'm between $7 and $270.
00:37:21- Okay.
00:37:22- And the main continuity I have is the membership.
00:37:25It's my main $27 a month or $270 per year membership.
00:37:30- Okay.
00:37:31- I really want to be at 3 million USD per year,
00:37:34but my constraint, I think, is 30 day cash.
00:37:38So, on the main membership funnel that I have for ads,
00:37:42I collect about $60 in the first 30 days per new member.
00:37:46- Okay.
00:37:47- But when I base the numbers on my past recent launches,
00:37:50it's probably costing me about $90
00:37:51to acquire them with meta ads.
00:37:53So I just feel like I can't scale profitably.
00:37:57- What's Churn, what's LTV?
00:37:59What's Churn, what's LTV?
00:38:02- So, Churn is 93%, and LTV bounces a little bit,
00:38:06depending on launches, but it's around $300.
00:38:09- Hold on.
00:38:12So, $27 divided by 7%, right?
00:38:16Okay, so 385 is, so 385 is true LTV.
00:38:20Okay, that's fine.
00:38:22So, big picture, just so we're clear.
00:38:25You're spending 90 and you're making 385, right?
00:38:30- Well, 385 is across the entire, like all of my members,
00:38:35so I haven't worked out the LTV
00:38:36specifically for the ads funnel.
00:38:38- Okay.
00:38:40Are you on school?
00:38:43- This membership is not on school,
00:38:47but I do have a smaller membership that is on school.
00:38:50- Okay, 'cause on school, it does it by cohort,
00:38:51so you can actually see cohorts by month,
00:38:53so you can see when you have your launch months
00:38:54and you can follow that cohort to see it's turn.
00:38:56- Yeah, I need to start tracking this.
00:38:59I can vote for myself, I just haven't.
00:39:01- Yeah, it's a pay, I mean,
00:39:02we spend a zillion to do that on school.
00:39:04Anyways, not a school ad.
00:39:06Okay, so you're at $60 is what you're collecting in cash.
00:39:10It's costing you 90.
00:39:11You're not sure on LTV,
00:39:12but you feel comfortable selling $300.
00:39:14- Yeah, yeah. - That's unfair?
00:39:17Okay, got it.
00:39:18And the problem is that it takes you
00:39:20two months to break even rather than one.
00:39:23- The way that I've worked it out,
00:39:27and I may not have all of my numbers here,
00:39:30but that it takes longer than two months.
00:39:32- Okay, yeah, yeah, I trust you, I trust you.
00:39:34- Yeah, it feels like, 'cause I'm all good
00:39:36with paying in advance and taking a hit on ads
00:39:39to get like a recoup cash,
00:39:41but it feels to me somewhat I've worked out
00:39:42that it's probably more like six months.
00:39:44- Okay, got it.
00:39:45So when you're making the offer,
00:39:47and when you're running the ads funnel,
00:39:48is it running to a webinar or running to a five-day event?
00:39:50What is it running to?
00:39:51- Yes, five-day, well, three, four, five-day events.
00:39:54I'm in the middle of one right now.
00:39:56- No, you're good, okay.
00:39:57- So it's paid, it's a paid event, yeah.
00:40:00- Okay, what's the offer that you sell at the event?
00:40:03Price point?
00:40:06- The paid event is $10,
00:40:07and then the offer is the 27 a month or 270 a year.
00:40:11And then I kind of switched in and out
00:40:14different kinds of upsells
00:40:15to try and increase the car value.
00:40:18- Okay, and so what percentage are taking
00:40:20the prepayment versus the 27?
00:40:24- About 10% take annual.
00:40:26- Yeah, it's 'cause if somebody has the offer
00:40:29between the two and you're giving them 16% off,
00:40:32what bonuses do you add to the 270?
00:40:34Or is it literally the same offer with the discount?
00:40:35- So previously, yeah, I've done joining bonuses
00:40:38every day of the event,
00:40:39but I haven't restricted it to annual members only,
00:40:41and I feel that I'm missing a trick there,
00:40:44and I've considered,
00:40:44'cause I'm in the middle of a launch right now,
00:40:46I could implement an annual members bonus right now,
00:40:49even for existing members to upgrade.
00:40:51So otherwise, apart from the two months,
00:40:55they get nothing else extra.
00:40:56- I honestly think you can very easily solve this
00:40:59with two steps, all right?
00:41:01So here they are.
00:41:02Number one is that when you're doing a five day selling event
00:41:05you need to sell the expensive thing.
00:41:07- Yeah.
00:41:09- So your fear is, I want to sell this recurring thing
00:41:12'cause I don't want to lose anybody.
00:41:14But the reality is that if you have five days with people,
00:41:16to a consumer audience is what you're selling to,
00:41:18300 to 600 is the impulse purchase window.
00:41:21For a consumer.
00:41:22300 is the low end, 600 is the high end.
00:41:27That's your range.
00:41:28You could probably go up a little bit,
00:41:29and you'd still probably,
00:41:30you'll make more money at five or 600.
00:41:31I'm just telling you right now.
00:41:34If you wanted to go crazy.
00:41:35I'm just telling you, you would.
00:41:36But you need to sell the annual up front, all right?
00:41:38That's number one.
00:41:39And what I want you to do is come up with
00:41:40one to two big bonuses
00:41:43that are gonna be annual exclusive, okay?
00:41:46- Yeah.
00:41:47- Now after the event is over,
00:41:50what you're gonna do is you're gonna do
00:41:51a scoop up campaign.
00:41:52So it's five days.
00:41:53And you're gonna retarget everybody who saw the ads
00:41:56directly to your $27 purchase page.
00:41:58That's 27 per month.
00:42:00And you're just gonna remove the bonuses.
00:42:02- Yeah.
00:42:07- That's it.
00:42:07That'll fix your cash.
00:42:10- I like that plan.
00:42:12- You wanna, you can do it?
00:42:13- Yeah.
00:42:14I like that plan.
00:42:15It's something that I haven't done enough before.
00:42:18I have tried increasing the price a few times
00:42:20to a bit higher, not even in the $300 to $600 trend.
00:42:24- Yeah.
00:42:25- But I feel it because I haven't offered
00:42:26a big enough bonus package.
00:42:27That's definitely, it hasn't helped.
00:42:29So I can absolutely do this.
00:42:31- I love this for you.
00:42:33Now let me give you a little something else.
00:42:36There's probably some sort of what I call
00:42:38physical product premium that you can add to this.
00:42:40So are there any, is there like a kit?
00:42:42You can't do it for this one, but for next one.
00:42:44Is there any kind of like physical thing
00:42:46that you can give them?
00:42:47Like the paper, the printer, you know, that kind of stuff?
00:42:51- There are so many things physically
00:42:55that I could put together.
00:42:57There are so many things.
00:42:58I have no clue about doing this.
00:43:00Maybe Vantage is a good place for me to ask
00:43:03because it's something that I know has worked well
00:43:05otherwise in the creative space with friends.
00:43:07So I'm sure that's something I could do.
00:43:09I just wouldn't know where to go.
00:43:09- Yeah, so I would say this.
00:43:11If I were you, what I would end up doing
00:43:13is I would sell them the printer with the paper.
00:43:16You can't do it by this time
00:43:16'cause you're like two days away from pitching.
00:43:18So do what I said first, you know,
00:43:19add the annual with a bonus.
00:43:20But you will dramatically increase your conversions
00:43:23if you add a physical product that makes this pitch tangible.
00:43:27Because the thing is, is people need, people,
00:43:29have you ever heard like people need a reason
00:43:30but have an excuse, all right?
00:43:32The idea is that like these ladies,
00:43:35I'm assuming they're ladies, 45 plus,
00:43:36want to, they want to buy it, right?
00:43:39They have a reason, but they need an excuse.
00:43:42The excuse that legitimizes the purchase
00:43:43they can go to their husband or their spouse, whatever,
00:43:47is they say, hey, but I got this thing
00:43:49which I'm gonna use to generate money or like,
00:43:51they get something, not just like a login.
00:43:53So a consumer's willingness to purchase
00:43:56goes up dramatically if it's physical.
00:43:58And so I think you'd actually be able
00:43:59to push a thousand dollar price point
00:44:00if you included the physical thing.
00:44:02- Yeah.
00:44:06My head is swirling now.
00:44:07It's so many different physical things
00:44:09that I can put together.
00:44:11Even if it's only a one thing to touch first,
00:44:13like that, yeah, I've never even considered doing that.
00:44:16- So step one, step two, 'cause I don't want to overwhelm.
00:44:18Step one, add the annual, make that the only offer available.
00:44:21I want to be clear.
00:44:22The only offer available is the annual with the bonuses.
00:44:25You cart close.
00:44:26After the cart closes, then you do a mop up campaign.
00:44:29That's the $27 a month thing,
00:44:30but it doesn't have these two key bonuses.
00:44:32- Okay, so annual only at the next launch.
00:44:36- Yes.
00:44:37- And then after the launch completes,
00:44:39then I offer monthly as well, but with none of the bonuses.
00:44:42So basically you do two cart closes.
00:44:44Cart close one, and then you do cart close two.
00:44:46- Yeah, yeah.
00:44:47- Okay?
00:44:48- Yeah.
00:44:48- And let's say there's three bonuses.
00:44:50You remove two.
00:44:50You keep one at the 27.
00:44:52So that allows you to cart close the second one,
00:44:53and then you have your normal everyday activities
00:44:56that don't include those three bonuses.
00:44:57- Yeah.
00:44:59- Cool.
00:45:00- Okay, and if people ask for monthly,
00:45:01'cause they would, do I just say no?
00:45:05- Right, I would just say we have options for monthly,
00:45:08but you're not gonna get these bonuses
00:45:10that I just spent all this time talking about,
00:45:12and they're gonna be like, fuck.
00:45:12- I like that, that's so fun.
00:45:13- Yeah, that's all.
00:45:14- Yeah, I really wanna be open and honest, yeah.
00:45:16- No, of course, do not lie,
00:45:17but you can make it less convenient
00:45:18to purchase the thing you don't want them to purchase.
00:45:21- Yeah, yeah.
00:45:22- Cool?
00:45:23- I feel like that helps.
00:45:24Okay, that's really awesome.
00:45:24Thanks so much.
00:45:25- You bet.
00:45:26Talk soon, I'll see you inside the group.
00:45:27- Peace.
00:45:28- All right.
00:45:29- Cheers, bye.
00:45:30- Cheers.
00:45:31Cheers.
00:45:32Johnny, like that one?
00:45:33Cheers.
00:45:34This is one of your people.
00:45:35I know.
00:45:36You're like, how am I saying a Chinese man
00:45:38has an Australian background?
00:45:39Well, it's 'cause he's from Australia, it's very mixed up.
00:45:42Okay.
00:45:45This is awesome advice.
00:45:48Thank you, Hailey, I appreciate that.
00:45:49Izzy, what's up?
00:45:50I have two women in the chat, holy cow.
00:45:52What a day.
00:45:55My 87% male audience.
00:45:56Izzy, I appreciate you guys.
00:46:00We're making a difference, we're doing it.
00:46:02We're doing it, guys.
00:46:03All right, what else we got?
00:46:05We up?
00:46:07All right.
00:46:07- Hi, Ali.
00:46:08- Let's rock, baby.
00:46:09- Hi, Sara.
00:46:10- Sara?
00:46:11- Hi, yes.
00:46:13- Okay, hi, Sara.
00:46:13- I sell interior design and wellness advisory services
00:46:17to ultra high net worth families and family offices.
00:46:20- Okay, love this.
00:46:22I am that.
00:46:23- Yes.
00:46:25- I'm the avatar.
00:46:26- Exactly, you are my avatar.
00:46:27- Yeah.
00:46:29Okay, what's revenue?
00:46:30- Anthony Robbins, actually.
00:46:31- What's revenue?
00:46:32- It's currently at 1.6.
00:46:36- Okay.
00:46:37- I'm looking to be at 10 million by end of next year,
00:46:41and then scale this to 250 million in the next 10 years.
00:46:45- All right, let's rock.
00:46:46What's the problem?
00:46:47- So it's a little bit of a Van Western door issue
00:46:52where I'm building out this ladder,
00:46:54and I have a question about the pricing structure.
00:46:56Basically, would you or Tony Robbins buy this ladder?
00:47:01- Okay.
00:47:01- Kind of the constraint I have right now.
00:47:03I want to build it before we scale it.
00:47:04- Okay.
00:47:05- So I have three tiers.
00:47:07The first one is the lowest,
00:47:11and it's $80 a square foot for renovating
00:47:15or building a new home.
00:47:16And that includes all of the construction selections,
00:47:20the drawings, the furniture layout and selections.
00:47:23We incorporate about a dozen different layers of wellness,
00:47:28and we collaborate with the builder and architect.
00:47:30So that's tier one, $80 a square foot.
00:47:33And the whole vacation is that we convert their home
00:47:36into a wellness sanctuary,
00:47:37so they don't have to leave to go to a wellness retreat.
00:47:41- Okay.
00:47:42- And tier two is a seven to 10 year commitment
00:47:46across their whole real estate portfolio.
00:47:49And it's $100 a square foot
00:47:51because we do everything that's included in the first tier.
00:47:53We also add strategy across the residences,
00:47:58a plan for sequencing.
00:48:02The rates are locked in across that time period.
00:48:04And we do like a property review
00:48:06to make sure every function of each property
00:48:08is in alignment.
00:48:10And then the final tier, tier three,
00:48:12is the other two tiers,
00:48:15plus more of their whole ecosystem.
00:48:17So we advise on their yacht, their plane, their offices,
00:48:21and they get curated annual experiences.
00:48:25Like we'll go to Italy and pick out their slab
00:48:28for their countertop.
00:48:29We'll meet the artist in Vienna, whatever it is.
00:48:32They get priority placement, they get a 15 year roadmap,
00:48:36and they get annual council reviews
00:48:38where they've had a life event, a baby, an injury,
00:48:42and we're presenting to the board about what we'd recommend.
00:48:47So they get priority.
00:48:49- What's the price on that?
00:48:51- That one is $100 a square foot as well,
00:48:55but there's a 200K stewardship retainer annually.
00:49:00- Okay.
00:49:02Have you sold many of these?
00:49:04- No, well, short answer,
00:49:07the top two, tier two and three, are what we're adding.
00:49:11The tier one, we've been doing for 20 years.
00:49:14So that's what I'm, I'm like, I don't know.
00:49:20I've run this through the AI, like 50 different ways.
00:49:24I just don't know how to build this ladder.
00:49:26- Yeah.
00:49:27Hmm.
00:49:30Well, I'm not actually sure if a ladder is the approach
00:49:36I would use with the business you have.
00:49:38- Okay.
00:49:40- 'Cause when you talked to me through all three of those,
00:49:43the first one made a lot of sense,
00:49:44and the other two I was like, kinda squinting a little bit.
00:49:47- Okay.
00:49:49- Because fundamentally, let's say you did tier one,
00:49:51and then I said, hey, can you do my yachts too?
00:49:53You'd probably be like, yeah, sure, right?
00:49:54And it would just be like at tier one.
00:49:56And so for fractal pricing to really work,
00:49:58it needs to be like five times the price.
00:50:00And so like going up by like 20%, it's like,
00:50:03it's too undifferentiated.
00:50:05Does that make sense?
00:50:07- Yes.
00:50:08- And also for me, 10 year, 15 year commitment
00:50:10sounds very heavy.
00:50:12- Okay.
00:50:14- Like I think the richest people in the world
00:50:15want flexibility.
00:50:15We want options and we want speed.
00:50:18And we wanna make sure that it's very easy
00:50:20and that when I pay you, I don't have to redo it.
00:50:23Because then I would hate you.
00:50:23- Right.
00:50:25Right, so, and the goal is,
00:50:28like I want to be working with families
00:50:31through all their generations.
00:50:33I want to be doing all their properties.
00:50:35So rather than them hiring a designer in Spain
00:50:38and Dubai and New York, I'm doing all their properties.
00:50:40- So here's what I think you should do.
00:50:42I actually think your annual retainer should be de minimus.
00:50:46It should be like a rounding error in this project.
00:50:49And the reason for that is, and I'll explain why.
00:50:51So we do this in home services a lot.
00:50:53And the way that it works is like,
00:50:55if I sell you a $100,000 thing, right?
00:50:58I would say, hey, we do a maintenance plan for $500 a year.
00:51:02And again, it's a tiny percentage of the thing.
00:51:07And it's 'cause you don't care about the money.
00:51:09And it should be positioned as insurance.
00:51:11Like I'll come by once a year
00:51:12just to make sure everything's working the way it should.
00:51:14All that kind of jazz, right?
00:51:16And it's like, that's what most people do anyways.
00:51:18And so what it does is it gives you an excuse
00:51:20to always meet with them every year.
00:51:21And as soon as you walk into a rich person's house
00:51:23and you're an established vendor,
00:51:24they're gonna have shit for you to do.
00:51:27- Okay.
00:51:27- So to me, you probably need more continuity
00:51:30or want more continuity, I'm guessing, in the business.
00:51:32- Yes, but I wanna help people at a deeper,
00:51:38more integrated level, almost like a fractional board advisor
00:51:41for their properties.
00:51:43So we don't replace their estate manager.
00:51:46We partner with them.
00:51:48- Yeah, I get it.
00:51:49That's my concern that makes me nervous
00:51:51is that I don't want to be like just doing,
00:51:55oh, we're gonna, will you help us refresh our bathroom
00:51:58or redo the kitchen and like small renovation projects?
00:52:02I wanna do the whole home.
00:52:04- I think that that's all gonna come down
00:52:06to like how rich the people that you were talking to are.
00:52:10(laughs)
00:52:11You know what I mean?
00:52:13And as much as you may hate to hear this,
00:52:16like the small jobs get the big jobs.
00:52:19- Yeah.
00:52:21- You know what I mean?
00:52:22So--
00:52:23- I do hate to hear that.
00:52:24- Yeah, but the thing is it doesn't mean
00:52:26they're less profitable, right?
00:52:27And if you think about it as like,
00:52:29this is me maintaining the business
00:52:30so that in three years or one,
00:52:31'cause the thing is rich people buy houses
00:52:32and yachts and planes all the time, right?
00:52:34And so like every year they're gonna buy something
00:52:36or every other year they're gonna buy something.
00:52:38So if it's an off year, you still make money,
00:52:40you still keep the relationship, you're still top of mind.
00:52:43And then I would like, when I go there, I'm like,
00:52:45hey, what else do you have in the pipeline of acquisition
00:52:48that we need to be looking at?
00:52:49And then that you can price that way.
00:52:51'Cause like fundamentally your pricing already scales
00:52:53with the size of the thing, right?
00:52:54So you could have like a yacht pricing,
00:52:56a jet pricing and a house pricing.
00:52:57That would make more sense to me than having these tiers.
00:53:02And then the maintenance plan I would weave into it,
00:53:04you don't call it maintenance, call it, whatever,
00:53:07whatever you want.
00:53:08I'm coming by once a year,
00:53:09I'm gonna make sure your shit's not fucked up.
00:53:11But then when I'm in there,
00:53:12I'm gonna ask you what other shit you got going on
00:53:13and I'm gonna sell you more shit.
00:53:15- Mm-hmm.
00:53:16Okay, so it's more of here's my core offer
00:53:20and then I have a continuity plan that is just included
00:53:25and it's like an annual retainer and okay.
00:53:28And then I can figure out some really great inclusions
00:53:31to include with that.
00:53:32Do you think that the $80 a square foot for the core offer,
00:53:37it's figure we typically do 10,000 square foot homes, right?
00:53:41- I literally did the math in my head.
00:53:42I was like, yeah, I was like, okay, so 800 grand.
00:53:44- It's funny 'cause when you said the $80 a foot,
00:53:46I wrote it down and I was like,
00:53:48the first thing I'm gonna tell her is that
00:53:49this number means nothing to me.
00:53:51- Yeah.
00:53:53- And what I mean by that is like,
00:53:54I don't know what $80 a foot is.
00:53:55The likelihood is most, especially new customers,
00:53:59this'll be, they're either gonna only buy from you
00:54:03'cause of your referral, right?
00:54:05Or they're pricing out three different people
00:54:07and at the end of the day, if you come up more buttoned up,
00:54:11more professional, better finishes, better looking aesthetic,
00:54:15you'll win the business.
00:54:16- Right.
00:54:18- 'Cause they're coming to you not
00:54:19'cause they're trying to save money.
00:54:20They're coming to you 'cause they want the best shit.
00:54:23- Right, and we've de-commoditized ourselves
00:54:25by saying we're a wellness advisory,
00:54:27which positions us really as a only one in the world
00:54:31at this point that deals at the level of wellness
00:54:34that we do and interior design.
00:54:37So we're not a commodity
00:54:38and they can't really price this out apples to apples.
00:54:41- Sure.
00:54:41- So it's opened a lot of doors,
00:54:43including with like the Rockefeller Family Office,
00:54:45but I just wanna get the pricing dialed in.
00:54:49So you're saying that if I were to hand a family office,
00:54:52like their CEO--
00:54:54- If you said 100 a foot or $80 a foot, I have no clue.
00:54:56They're just gonna do the math
00:54:58and just figure out how much it costs.
00:54:59You know what I mean?
00:55:00Like it means it's whatever.
00:55:02- But giving them that formula is okay, don't you think?
00:55:05- Yeah, it's fine.
00:55:06They're just gonna do the math.
00:55:07So it doesn't like, you could have that be internal
00:55:10and just price the job and send it to them.
00:55:12- Well, yeah, yeah.
00:55:16I wanna like give them something
00:55:18so that when they get on the call with me,
00:55:21they're not completely blindsided.
00:55:23Like I'm trying to set the expectation of,
00:55:25yeah, we do $20 million minimum for the value of your home.
00:55:30- I think if you set that upfront,
00:55:34again, I don't think the $80 really does much,
00:55:37but if you set that expectation upfront
00:55:39that like we only deal with ultra high net worth
00:55:41and family offices,
00:55:42and it's $20 million plus estates minimum,
00:55:44they're already gonna guess
00:55:45that you're more than 100 grand, right?
00:55:47- Yeah. - Right.
00:55:49- Okay.
00:55:50- So I would not do this ladder.
00:55:53I would have maybe,
00:55:54I don't even really care about the ladder in general.
00:55:56You're gonna price your job
00:55:57'cause you're so bespoke anyways.
00:55:59You're bespoke.
00:56:00And so I think the key point is like,
00:56:01sell whatever you can get away with.
00:56:03A lot of people, like if you're a soul at the table,
00:56:06as long as you give them exactly what they want,
00:56:07they'll love you, add in the continuity
00:56:09so that you can keep getting business from them
00:56:10and it'll stack year over year.
00:56:12- Okay, okay.
00:56:14Well, I'll just go $100 a square foot
00:56:17and the continuity and figure out
00:56:18some awesome features for that.
00:56:20- 100's a nice simple number, right?
00:56:22Very easy to do the math.
00:56:23- Yeah, super easy, do it in your head.
00:56:25I love that.
00:56:26Okay, amazing, thank you so much, Alex.
00:56:28And I'm coming to L1 in March, so I will see you soon.
00:56:31- Rock and roll, appreciate you.
00:56:32- Appreciate you, take care.
00:56:34- You bet.
00:56:36All right, let's go?
00:56:39Let's rock and load, baby.
00:56:41Thank you for showing up and me practicing
00:56:44considering your advice.
00:56:46You're welcome.
00:56:46Hello?
00:56:47- Alex.
00:56:50- Let's rock.
00:56:51- What's going on, man?
00:56:53It's Pat.
00:56:54- Just hanging out.
00:56:55(laughing)
00:56:56Just hanging with 1,500 of my closest friends.
00:56:59All right, so let's go revenue, business, problem.
00:57:03Bing, bing, boom.
00:57:04- Okay, sweet.
00:57:05So we met back in August and we had a conversation.
00:57:08At that point, I was at 20K.
00:57:10This month, I'm gonna be doing 71K.
00:57:12- And it's three and a half X in six months, I'll take it.
00:57:18- Yeah, not too bad.
00:57:20Yeah, so we'll do on average right now,
00:57:24we're doing about 45K a month.
00:57:26The challenge that I'm having right now
00:57:27is that I am doing everything.
00:57:30Like I am the main point of-- - Well, what do you do?
00:57:35- We help financial advisory businesses
00:57:37scale through client acquisition.
00:57:39So MetaAds is the main deliverable.
00:57:41- Financial advisory agency/consult.
00:57:43- Yep.
00:57:45- Okay, got it.
00:57:46Problem?
00:57:47- I'm the main point of failure.
00:57:51So I don't have the systems or the processes
00:57:54for marketing, sales, or delivery.
00:57:58And so right now, I'm fixing the delivery
00:58:01and I'm just trying to figure out how do I do this faster
00:58:04so I can make more money.
00:58:06- Yeah, love that.
00:58:08So right now, if we were to double the amount of,
00:58:12like can you get customers easily right now?
00:58:14- Yeah.
00:58:15- Okay, so getting customers is not a problem.
00:58:17So the issue is delivering for the customers.
00:58:19- Yeah, like I haven't lost any clients,
00:58:22but if I were to double it right now,
00:58:24I would definitely, I would start not being able
00:58:26to service clients and then they would start churning faster.
00:58:30- Got it.
00:58:30So what I would think of is step one
00:58:33is you need to think in workflows rather than roles.
00:58:35So like what are all the things that must occur
00:58:40in order for the business to happen
00:58:41and value to be delivered?
00:58:43So right now with a customer,
00:58:45there's probably some sort of communication cadence
00:58:47you have with them.
00:58:48There's probably something that you,
00:58:50that's like, I don't know, individualized.
00:58:52There's probably some sort of account management that's done.
00:58:54There's probably some sort of asset or creative
00:58:57that's being generated on their behalf.
00:58:59There's probably some sort of like site work.
00:59:01Do you help work their leads?
00:59:02I'm guessing.
00:59:04- Yep.
00:59:05- Yeah, right.
00:59:06It's a classic.
00:59:07So currently how many people work for you?
00:59:11- There's six of us total, so five.
00:59:16- Okay.
00:59:17And so what are you spending your time doing?
00:59:19- Right now it's building out the process
00:59:24of building all the assets.
00:59:25So like the VSLs, the nurture campaigns,
00:59:30and then I meet with the clients
00:59:31and I work on them with strategy as well.
00:59:33Like how do we position themselves for their business?
00:59:37- Got it.
00:59:38So I would say that like the VSL stuff,
00:59:41so much of that can be AI'd at this point, right?
00:59:45And basically almost all asset creation
00:59:47has become incredibly commoditized.
00:59:50Like, will it be the best?
00:59:51No, but you can get an eight out of 10
00:59:52every time in seconds, right?
00:59:54- Yep.
00:59:54- So you're building out those flows,
00:59:57which when a new customer comes in,
00:59:59that should kick off a process then spins up VSLs,
01:00:01spins up ads, spins up creative, spins up copy,
01:00:04integrates with meta, gets them online,
01:00:06spins up the funnel so that they can get built out.
01:00:09And so the only thing that really has to happen
01:00:10is that they agree the direction
01:00:12and you turn it on, right?
01:00:13And you get a card on file.
01:00:14- Yeah.
01:00:16- Okay, so right now you just need to build that.
01:00:18Okay, so how many hours a day you spend building it?
01:00:22- Right now, it's like all of my time.
01:00:26Aside from meeting with customers or like servicing,
01:00:29like responding, it's all of my time right now.
01:00:32- So how long will it take you to get this stuff done?
01:00:34- I feel like two weeks probably, like max.
01:00:40- Okay.
01:00:41- And then--
01:00:42- Well, let's deal with the next problem
01:00:44'cause if you're asking me a two week,
01:00:45it's gonna be solved in two weeks problem,
01:00:47then let's look past that.
01:00:48- Okay.
01:00:51- So--
01:00:51- Yeah, so then--
01:00:52- Yeah, go for it.
01:00:53- Yeah, I was just gonna say,
01:00:54then the next thing that I see is
01:00:56just like the process for sales.
01:00:58Like we're getting, like I can turn up the ticket
01:01:01for leave on that end, I think we'll still,
01:01:04the cost for leave right now for us is like 50 bucks.
01:01:07It's pretty great in comparison to what we're charging.
01:01:10And so I think like the next challenge that I'm gonna have
01:01:14is that it's just not being in sales.
01:01:18Although I guess I could be, yeah, so.
01:01:21- Okay, so I mean, you're gonna apply the same process
01:01:23on delivery to the sales process.
01:01:25The only difference is that you cannot rely on your expertise
01:01:29in order to close.
01:01:31So the process has to look like this is that like,
01:01:33you have to script this so somebody who does not know
01:01:36much about being a financial advisor
01:01:38can close a financial advisor on your services.
01:01:40So they will not be able to sell like you
01:01:44'cause I'm assuming you sell with a position of authority
01:01:46as kind of an expert and that's why founders
01:01:48typically always have higher close rates
01:01:49than somebody who's a traditional salesperson.
01:01:51And then they're like,
01:01:52"The salesperson can't sell like I can."
01:01:53It's like of course they can't sell like you can.
01:01:55They can sell a different way
01:01:56and still close the same percentage, sometimes more.
01:01:59So that's what the question-based framework
01:02:03in terms of like having a closer framework
01:02:04for the sale for them.
01:02:05And then do you have a VSL
01:02:07before they get on the call with you?
01:02:08- Yeah, but it needs to be updated 'cause it's--
01:02:13- Okay. - Yeah, it needs to be updated.
01:02:15- Well, I'm gonna give you bad news and good news.
01:02:19Which one do you want first?
01:02:21- (laughs) Give me the bad news.
01:02:24- The bad news is that you don't have
01:02:26any real problems with your business.
01:02:27And so I have no, like I'm not going,
01:02:29like you three and a half X in the last six months
01:02:32and you know what your constraint is, which is delivery.
01:02:34You're taking the time to systematize
01:02:36what you're doing in the backend, integrating AI
01:02:38so that you can get more leverage there.
01:02:39The next constraint that's gonna come up is gonna be sales.
01:02:42And we need to just look at your top.
01:02:44Are you recording your sales calls?
01:02:45- Yeah. - Okay.
01:02:47So keep all of them, plug them into the AI
01:02:50and then ask for the recurring themes
01:02:52that people say their problems are before they buy.
01:02:56Take that list of problems, reintegrate that into the VSL.
01:02:59We did this and it literally doubled our acquisition.
01:03:01Just a side note.
01:03:02We literally just took only the pain points
01:03:03that people said, put those in.
01:03:05And then we're like, oh, we literally made a document
01:03:07called why people buy. (laughs)
01:03:09And then we just use those in the VSL.
01:03:12And then you take those same things
01:03:13and you build the script around it.
01:03:15- Perfect. - The good news is--
01:03:20- So-- - You're on the right path.
01:03:22Like this is just the work.
01:03:23- So I was gonna ask you then, if I'm on the right path,
01:03:27you said before when we talked that this is going,
01:03:30at some point I'm gonna get tapped out, right?
01:03:32And when we spoke originally-- - Yes.
01:03:34- You're like, go up to Wales.
01:03:36- What's churn, how many customers do you have right now?
01:03:41- Nine. - Nine, yeah.
01:03:43So the thing is, is that, what's your price point monthly?
01:03:46- It's creeping up but I'm pushing from six or seven
01:03:50which is probably around five right now.
01:03:51- Hundred or a thousand?
01:03:53- Five thousand.
01:03:55- Yeah, so with SMBs, I mean,
01:03:59if you get the right financial advisors,
01:04:01$5,000 a month means nothing to them.
01:04:03And that's who you want.
01:04:06This can scale but it will scale
01:04:08only based on the quality of your avatar.
01:04:10If you deal with somebody who needs you
01:04:11to save their business, you will never save them.
01:04:14You'll just create a churn factory.
01:04:15So just make sure you keep the bar very clear
01:04:17of what is required for somebody to be a customer of yours.
01:04:21As long as that bar continues to go up over time,
01:04:23the business will be okay.
01:04:25If it starts going down, it's no bueno.
01:04:27From an enterprise sellability perspective,
01:04:32but if you wanna make money, which is what you're doing,
01:04:34it's fine.
01:04:34- Yeah, yeah, first of all, I wanna get to a million dollars
01:04:40in profit per year and then after that--
01:04:43- You could do that and you'll hit that run rate
01:04:45in like a quarter or two, man.
01:04:47Just keep solving the problems you are, you're fine.
01:04:50- Yeah, okay. - Cool?
01:04:52- Awesome, thanks man.
01:04:53- Appreciate you.
01:04:54Yeah, rock and roll, man.
01:04:56Easy peasy.
01:04:57Rudy says, comments he might read them.
01:05:03Comments I might read them.
01:05:04Can drop service make me millionaire till December?
01:05:07Mindfully you put a question mark at the end of your sentence.
01:05:10I don't even know what drop service is.
01:05:12(mumbles)
01:05:157350, you're the best.
01:05:18All right, rocking?
01:05:20All right, let's do it.
01:05:21Next one.
01:05:21- Hey Alex, Alex, how are you?
01:05:24- I'm getting a ton of static.
01:05:26All right, go ahead, man.
01:05:29- My name is Alex, I'm a music lawyer,
01:05:34helping artists go six and seven figure deal.
01:05:37- Okay.
01:05:38- And we did $487,000 after doing "Cash Cow."
01:05:42- Yeah, I was gonna say we did a "Cash Cow" as it was said.
01:05:45So you did $47,000, that's what you did.
01:05:50And what are you at now?
01:05:51- Right now we are doing 30K, the parent revenue run rate.
01:05:57- That's monthly, okay.
01:05:58What were you doing when you got on the show?
01:06:00- 83K.
01:06:03- Monthly?
01:06:04- So we grew by $400,000 in one year.
01:06:07- Oh great, I'm glad, my advice worked.
01:06:10That's good.
01:06:11So 80K to 480K.
01:06:13So that was worthwhile to come on the episode.
01:06:16Okay, fantastic, I'm glad we 6X'd.
01:06:20All right, so what do we do from here?
01:06:23So what's the problem?
01:06:26- The thing that's stopping me right now is qualified lease.
01:06:29The serviceable obtainable market
01:06:33is less than 100,000 people.
01:06:36And I'm looking to build a way to get to those people
01:06:41that have life offers at the right moment at the right time
01:06:46so they can hire me to help them close those deals.
01:06:48- Okay, there's honestly a shitload of static on my side.
01:06:55It's very hard to understand you.
01:06:56It's not on you.
01:06:57So what do you need help with?
01:06:59Just say it as few words as you can.
01:07:05- Qualified lease.
01:07:06- Okay, you need more leads, got it.
01:07:07Okay, so you need more leads.
01:07:09Now, if you doubled or tripled your lead flow right now,
01:07:11would you be able to handle it?
01:07:13- Yes.
01:07:14- Okay, got it.
01:07:14So what are you doing right now to get more leads?
01:07:16- Content.
01:07:18- Content, okay, got it.
01:07:20And I think what I told you to do
01:07:23was to send them over to Instagram and then DM
01:07:25and do a DM funnel.
01:07:26Is that what you're doing?
01:07:28- Yeah, doing that.
01:07:29- Wonderful, okay.
01:07:31So if you just need more leads,
01:07:35it's gonna be one of two things
01:07:37that you can control on your own.
01:07:39Option one is you start running meta ads.
01:07:42It's option one.
01:07:46Option two is you just make more content.
01:07:48And here's the beautiful part.
01:07:49You can do both of those things
01:07:50and they accomplish the same objective.
01:07:52So if you crank up your content
01:07:55and then make all of the best performers your ads,
01:07:57then your ads and your ad creates,
01:08:00or your content and your ads creative can merge,
01:08:02which by the way, for anyone who's listening to this,
01:08:03is the future of how ads are working.
01:08:06Like the algorithm for ads
01:08:06and the algorithm for content are the same.
01:08:09Like it has merged.
01:08:10And if you think about what the platform wants,
01:08:12if the platform could have every single content creator
01:08:14making ads and the ads are just more content,
01:08:16then that means the entire platform would be quote ad free
01:08:19and still generating revenue,
01:08:20which is a superior experience for the users,
01:08:22which is exactly what the platform wants.
01:08:24And so how many pieces of content are you making right now
01:08:27that are, like what are you making per week right now?
01:08:33- Right now, 12 to 15 on Instagram.
01:08:36- Okay, so two a day.
01:08:37- Two to three a day, yes.
01:08:41One to two long on YouTube.
01:08:43- Per week?
01:08:44- Yes, per week and five shorts per week.
01:08:48- Okay, this works.
01:08:52And the five shorts, are those different
01:08:54than the two per day you have on Meta?
01:08:55- Yes, well, one of them,
01:08:59I do two posts on Instagram and the same shorts
01:09:04is the carousel on Instagram, so I post it.
01:09:08- Yeah, got it.
01:09:09Okay, so I think, so big picture,
01:09:11I mean, you could obviously make more content,
01:09:13but I mean, I think your content cadence right now is,
01:09:16you know, is adequate.
01:09:17Where you're probably gonna have to tighten the screws on
01:09:19is the quality of the content.
01:09:22So how much research are you doing on the hooks,
01:09:24on the scripting?
01:09:25Are they scripted or how are you making them right now?
01:09:28The shorts?
01:09:29- Yeah, I'm doing the content, create a hook,
01:09:34and then these steps for stories,
01:09:37and do carousel and infographic.
01:09:40- Okay, do you have any kind of big accomplishment
01:09:43that you've had happen?
01:09:44- Yeah, last year we helped artists go over $5 million.
01:09:51- Okay, great.
01:09:52So I would put that front and center,
01:09:55and I would probably include it in every YouTube video
01:09:57that you have, so when you introduce yourself,
01:09:59to edify you, I would say, hey, you know, I'm Alexey Ammar,
01:10:03I, you know, I do this for this type of person,
01:10:05and we've done projects as small as this,
01:10:07all the way to projects as big as this,
01:10:09our most recent thing that we did last year
01:10:11for $5 million, and so in this video I'm going to XYZ,
01:10:14show you how blah, blah, blah, blah, blah works, right?
01:10:17That's, those are small tweaks that are gonna improve it,
01:10:19but that's gonna like elevate the brand overall,
01:10:22but right now it's like, we just need to grow the brand
01:10:24from a top-end, you know, content perspective,
01:10:27and ads is just something that you can do to scoop up
01:10:30more people out of the audience you already have,
01:10:33but the big thing is that you just need to hit
01:10:35your advertising with an atomic bomb,
01:10:37like that's what it is, like that's what you need to do.
01:10:39Now, we could look at pricing stuff,
01:10:41but I think I already looked at pricing
01:10:42the last time we spoke, so we fixed the business model,
01:10:45we 6X'd it, so that was good.
01:10:47What are your margins right now?
01:10:49- 80%, accepted margin.
01:10:53- 80%, love that.
01:10:55- Yeah.
01:10:56- So, yeah, we just need to make a shitload more content,
01:11:00and make better content, and then run the best content
01:11:02as ads, like that's it, you have a front-end thing.
01:11:04Like you can take twice the number of customers, right?
01:11:06I think I said that earlier.
01:11:08- Yeah.
01:11:08- Yeah, that's it, it's a pure demand thing,
01:11:11and we already fixed the conversion process,
01:11:12and we fixed the pricing, so you just need to do more.
01:11:14So your focus, first four hours of every day,
01:11:17goes towards this, and then you can start your day.
01:11:20Content and ads.
01:11:26- Also, they hear the same things.
01:11:28Go ahead.
01:11:29- Can you hear me?
01:11:30Okay.
01:11:31Yeah, so, my question is,
01:11:34there are some people from activities in the industry
01:11:38that say that because they say it's all about perception,
01:11:42status, and network, that I should go to industry conferences,
01:11:45awards, dinners, all of that kind of stuff.
01:11:48What do you think about that?
01:11:55- I mean, if you want, but I would say like,
01:11:56I mean, if you want, you can go like once a month,
01:11:58and make sure it's a good one, and see,
01:12:00make sure you like can solicit the audience for business.
01:12:03But by and large, content is gonna give you
01:12:05a lot more distribution.
01:12:06So, branding is gonna come from the association.
01:12:09So if you wanna make associations
01:12:11with people who are bigger than you, that's fine.
01:12:13I'm not against that.
01:12:15The big thing that's gonna matter the most though,
01:12:17is that you have helped people like them get what they want.
01:12:20Okay?
01:12:24- I want more people to know about the things
01:12:25that we are already doing.
01:12:27- First four hours of every day
01:12:29goes towards making more content,
01:12:30and then turning that content into ads.
01:12:31That's it, you don't need to change anything else.
01:12:33You're at 500K, that's how you go to three or 4 million,
01:12:35and then we check back in then, all right?
01:12:38- Okay, thank you.
01:12:40- Rock and roll, Alexey Mark, congratulations on your 6x.
01:12:43- Thank you.
01:12:44- All right, dog sued.
01:12:45All right.
01:12:48How do we fix our mic?
01:12:51Is the next one fixed?
01:12:53All right.
01:12:54I'm 24 and unsure about what to do to achieve my dreams.
01:12:58Dude, I'm 30, I was about to say 32, fuck, I'm 36.
01:13:01(laughs)
01:13:03And unsure what to do to achieve my dreams.
01:13:05I see so many people recommending
01:13:07hundreds of different things,
01:13:08but I'm gonna analysis paralysis.
01:13:09Yeah, bro, just pick one.
01:13:10You're not gonna know.
01:13:13Imagine this, imagine I was trying to tell you,
01:13:16hey, some people are like, pizza's great,
01:13:17that's gonna be your favorite food.
01:13:19And someone else is like, steak's great,
01:13:20that's gonna be your favorite food.
01:13:21Someone's like, oh, ice cream's great,
01:13:22that's gonna be your favorite food.
01:13:23And you're like, I just don't know
01:13:24which of these things to pick.
01:13:25Dude, it's food, they're all good.
01:13:26All these different paths are good.
01:13:28So you just pick one and then you start eating it.
01:13:30All right, I'll answer another one.
01:13:34Orion's, who can't spell surpass, I'm guessing.
01:13:39I will surpass you one day, Alex, just watch, I'm serious.
01:13:43I'm watching, bro, we're watching.
01:13:45We're watching.
01:13:48All right, how do I get a beard like that?
01:13:50Literally, you actually do nothing.
01:13:52That's how that works.
01:13:54Let's see, how do I build a following?
01:13:57Missed that one.
01:13:59What are your thoughts on multilevel marketing
01:14:00such as Shopify?
01:14:01I don't think Shopify does multilevel marketing.
01:14:04I think you mean affiliate.
01:14:05And yeah, I think having affiliates,
01:14:07people who recommend your products
01:14:08and are compensated for doing so is a great idea.
01:14:10That's how TikTok Shop works.
01:14:12Can I sell services to become a millionaire?
01:14:14Yes.
01:14:16What?
01:14:16Yes.
01:14:1980% of businesses in the United States
01:14:20are service businesses.
01:14:23What are we talking about here?
01:14:24Thoughts on residential remodeling.
01:14:26So by the way, guys, thoughts on something?
01:14:28Very tough question.
01:14:29How would you scale a food truck business
01:14:33that I just franchised?
01:14:34Well, I think the franchising is how you scale it.
01:14:36Hello?
01:14:37- Welcome, host.
01:14:38You are now in the host room and can manage your callers
01:14:40from the call-in studio web interface.
01:14:42Audio recording is on dual channel.
01:14:46- Can you guys hear this?
01:14:47Or is it just me, am I hearing this?
01:14:50I just started a hair growth business.
01:14:54What is your best advice for you to have a great start?
01:14:57I think having good genetics is a great start
01:14:58for having a hair growth business.
01:15:00You gotta let people know about it.
01:15:05Oh, they can hear it.
01:15:07They can hear that I'm the host.
01:15:08We are struggling today.
01:15:12Will I start, how would you start an AI dating app?
01:15:16I probably, it's, that's such a small question
01:15:20with a long answer.
01:15:21All right, hello.
01:15:22- Hello.
01:15:25- Hello?
01:15:27- My name's, my name's Adam.
01:15:29How are you?
01:15:30- Who is it?
01:15:31- My team name is Adam Jacobs.
01:15:35- Adam Jacobs.
01:15:37You've been always a bridesmaid, never a bride, right?
01:15:40You've always been on the list, but never made it.
01:15:43Am I correct?
01:15:44- That's correct.
01:15:45- I saw your comment in the group.
01:15:48I made sure that you got in.
01:15:49Okay, revenue, business and problem.
01:15:52Also, it sounds like you've got like something
01:15:54in the background.
01:15:55Oh dude, just mute, mute us in the background.
01:15:59- Is that better?
01:16:01Okay.
01:16:01- Just mute me.
01:16:02- So I own talent agency group.
01:16:04So we own talent agency for actors and models.
01:16:07Photo studio doing 3.4 million in revenue.
01:16:13- Oh, you're a photo studio.
01:16:14Dude, turn me down in the background.
01:16:17Mute me in the background.
01:16:18I can hear myself.
01:16:20- Okay.
01:16:21So we're talent, yep, I've fixed you up in the background.
01:16:24We've got feedback acting and modeling agencies.
01:16:27And now we have a photography,
01:16:29a chain of photography studios as well, as well.
01:16:33- Okay, modeling agency and photography studios.
01:16:36Okay, got it.
01:16:37- We're doing 3.4 million in revenues.
01:16:41And we'd like to get to six at a much higher margin
01:16:46and significantly less stress, or less talent, I guess,
01:16:51the best way to describe it.
01:16:52- And that's the problem is that you want less stress?
01:16:55- It gets in the sense of,
01:16:57so the talent agencies are very, very difficult
01:17:00in the sense of, it's hard to commoditize them.
01:17:03So we basically, we started by selling preparation.
01:17:07'Cause we get 5,000 applications for the agencies a year.
01:17:13So you don't know, you know,
01:17:15we basically started to try and productize
01:17:17many of those leads, because you can't guarantee the outcome.
01:17:21So, yeah.
01:17:23- You're like, if you're ugly, you're ugly.
01:17:24That's nothing I can do, right?
01:17:25- Yeah, exactly.
01:17:27So if they don't book work, they get very, you know,
01:17:31they get aggressive, regularly.
01:17:33So we tried, the photo business was founded
01:17:36to essentially try and sell all the leads we don't want,
01:17:40something else, and also try and monetize it on the front end.
01:17:46- Okay.
01:17:46And the problem is?
01:17:48- So the problem is that,
01:17:51as we've been sort of stepping that up,
01:17:54we sort of stopped selling for preparation.
01:17:57So we set with preparation packages by the agency.
01:18:01And it's proven to be quite, quite, you know,
01:18:04difficult to sort of make the pivot over to just the photos
01:18:07and expenses for the agency.
01:18:10Proving to be very, very challenging.
01:18:15- So, okay.
01:18:17So you had a modeling agency.
01:18:18Can you give me a split of the revenue
01:18:20between the modeling agency and the photo studio?
01:18:22- The photo business is about just a little over
01:18:26$1 million.
01:18:27- Okay.
01:18:28- And the rest--
01:18:29- And 2.4 is through the agency.
01:18:31Okay, got it.
01:18:32Okay.
01:18:34So--
01:18:35- With a big chunk of that being actual workshops
01:18:39and preparation, as opposed,
01:18:41we only get a commission of 20% on booked work.
01:18:44So we got back to that total,
01:18:46the total volume of cash--
01:18:48- Yeah, yeah.
01:18:48- At revenue.
01:18:49- And most of that 2.4 is prep work, not percentage.
01:18:52- Correct.
01:18:55- Yeah, okay, got it.
01:18:56Okay, so then,
01:18:59and then you just randomly started a photo studio, right?
01:19:01- Correct.
01:19:04(laughs)
01:19:06- If the photo studio disappeared, would your life be easier?
01:19:09- If the agency disappeared, my life would be easier.
01:19:14- All right, interesting.
01:19:15What are the margins between these two businesses?
01:19:17- The photo studio has much healthier margins.
01:19:21- Well, tell me what is it?
01:19:23- The gross profit's about 60% on the photo business.
01:19:29The agency packed--
01:19:30- No, but I don't care about gross, what's net, what's net?
01:19:33- What, sorry?
01:19:36- Net margin on photo.
01:19:38- Net margin on photo is about 25 to 30%.
01:19:43- Okay, so you're making whatever, 250 grand here, right?
01:19:48- Yep.
01:19:49- Okay, and what are you making on the 2.4?
01:19:51- On 2.4, that's another 250.
01:19:57- Okay, got it, so it's half the margin.
01:19:59Okay, so I guess, so the question I have is like,
01:20:03what part of the modeling agency business do you not like?
01:20:10- The fact that you can't control the outcome for the talent
01:20:15and then also just the very difficult nature
01:20:18of high churn of your talent if they're not succeeding.
01:20:22- Well, dude, it's just because you're taking the bottom.
01:20:25That's the issue.
01:20:28- Taking the bottom?
01:20:31- No, you're taking the bottom.
01:20:32You're bottom feeding right now.
01:20:34So you're making more money, yeah, right.
01:20:37And so like, there's nothing wrong with agencies.
01:20:39There's gigantic multi-billion dollar agencies.
01:20:42There's nothing wrong with the model.
01:20:44The issue is the avatar.
01:20:45- Yeah.
01:20:48- Right, so I'm guessing that you're running ads
01:20:51to get these modeling people?
01:20:52- No, mostly organic.
01:20:55- Oh, so people just heard of you and then they just,
01:20:57organic as in like, they just come in
01:20:58for like Instagram and stuff?
01:20:59- Instagram and Google like SEO, something like that.
01:21:05- Okay, got it.
01:21:08And so you want to get to 6 million.
01:21:10Honestly, we got to pick one of these businesses.
01:21:15Just, we got to do one of them.
01:21:16- Yeah.
01:21:19- Like you're CEO of both, right?
01:21:21- Yeah, yeah, yeah, yeah.
01:21:25- Okay.
01:21:26How would you get customers in your photo studio
01:21:28if you did photo studio shit?
01:21:29- We do a lot of giveaways.
01:21:33Like we do a lot of giveaways with the maintenance.
01:21:36- Yeah, model call giveaway, classic, yeah, okay.
01:21:40So yeah, I mean, that's one business.
01:21:44The modeling agency scales a little better
01:21:46'cause you don't have to open up
01:21:47brick and mortar stores all the time.
01:21:48- Yeah, that's true, that's true.
01:21:54- Yeah, so which one do you want to do?
01:21:56You just got to pick one, like if I said,
01:21:58so if your modeling agent disappeared,
01:22:00would you be happier and you'd be able to grow,
01:22:02would you be able to double the photography studio?
01:22:04- Yeah, yeah.
01:22:06- How long have you had the photography studio?
01:22:08- 14 months.
01:22:11- Yeah, it is a little new.
01:22:13You said how many locations?
01:22:15- Two.
01:22:18- Okay.
01:22:19Honestly, you just have to make that call.
01:22:23Like if I get you to do one thing from today,
01:22:26is that you pick one.
01:22:27- Yeah.
01:22:33- Like Zuckerberg didn't have an Airbnb, you know what I mean?
01:22:36- Yeah, the main advice is just pick one and go ham on that.
01:22:43- Because if you had half your time back,
01:22:48would the problems that you're dealing with
01:22:49either these businesses be solvable?
01:22:51- Yeah.
01:22:53- Right, you only have enough time
01:22:55to maintain them, not grow them.
01:22:56- That's, yeah, that's very accurate.
01:23:00- Right, and when you talk about switching costs,
01:23:02it's like there's cost switching, like task switching,
01:23:05and then there's like business switching.
01:23:06So you have to like completely switch context.
01:23:08You're like, right, I'm talking about people
01:23:10showing up for photography shoots,
01:23:11upselling into portraits and packages.
01:23:13And then you're like, wait a second, models.
01:23:15I've got to go outbound to get a brand deal for so-and-so.
01:23:18Right?
01:23:20- Yeah.
01:23:20- It's just two completely different businesses.
01:23:23So both of them make the same profit.
01:23:26I would say that modeling agency scales easier,
01:23:28but you sound like you hate that.
01:23:31And so pick whichever one you want,
01:23:33get all the time back and go all in on that.
01:23:35- And then just push all the way
01:23:38until the agency strikes the part of the set.
01:23:40- Sure.
01:23:41In the in-between.
01:23:43But like the, I'm telling you what the difficulty
01:23:46with the studio is going to be.
01:23:47I said, you know, is finding talent
01:23:50at each of the locations would be tough.
01:23:52You're also going to deal with ad fatigue
01:23:54'cause it's a local market.
01:23:55And if it's all ads driven,
01:23:56it's very little recurring revenue.
01:23:59You can get some seasonal if you do families,
01:24:01are you doing, what kind of shoots are you doing?
01:24:03- I would do model shoots.
01:24:05- Model shoots.
01:24:06What do you know?
01:24:07- A model shoot.
01:24:08- All right.
01:24:09So I guess you can get up the,
01:24:10they'll probably get updates every year or two.
01:24:12Maybe you would know that better than me.
01:24:13So I think if you just say,
01:24:15if you position it as models get updated pictures
01:24:17at once a year, that might be a great way
01:24:19to get them into an annual subscription.
01:24:22That's probably the angle that I would go with
01:24:24on the photo studio to make it a little bit more recurrent.
01:24:30Okay.
01:24:31But just pick one, man.
01:24:33There's nothing I can tell you in this call
01:24:34that's going to matter except for that.
01:24:36- Okay.
01:24:38Good, that's good advice.
01:24:41- All right.
01:24:41That's all you got to do is just pick
01:24:42and then you got to commit, man.
01:24:44And not have this happen again.
01:24:46That means you stay the pack.
01:24:48You pick and then you commit.
01:24:49Stick with it.
01:24:50- Thank you.
01:24:52- Appreciate you, man.
01:24:53Congratulations.
01:24:54Hey, listen, man.
01:24:55You're obviously good at doing stuff.
01:24:56You're making millions of dollars a year,
01:24:58but you got to focus it.
01:25:00- Thank you so much, sir.
01:25:01That is a good point.
01:25:02Thank you.
01:25:03- You bet, brother.
01:25:04Talk to you, man.
01:25:06- All right, bye.
01:25:07- Toodles.
01:25:08Cheers.
01:25:09Cheers.
01:25:11All right.
01:25:1449, trying to build a real estate wholesaling business.
01:25:16You should start.
01:25:19All right.
01:25:22I need a--
01:25:24- Hey, Alex.
01:25:25My name is Angelo.
01:25:26I sell personal training to people age 45 plus.
01:25:31Right now, I'm at 300K revenue.
01:25:34And I would like to be at 1 million.
01:25:38The thing that's stopping me is that right now,
01:25:40I have three locations.
01:25:41I grow way too fast.
01:25:43So one location is filled with like 180 members,
01:25:47paying on average 80 per person.
01:25:49One location is at like 46 people,
01:25:54also paying the same.
01:25:55And another location is at 105 people also paying the same.
01:26:00So that's the situation currently.
01:26:03- That's you're making 300,000 between three locations?
01:26:06- Yeah, combined.
01:26:09- Geez.
01:26:10Who's doing the PT?
01:26:12- Yeah, I know.
01:26:13So one and two.
01:26:16People come one time per week, 20 minutes.
01:26:19No more clothes, they don't sweat.
01:26:21We're the personal trainer.
01:26:23We train like six people per one hour.
01:26:26So every 20 minutes, two new people.
01:26:28It's high intensity, 45 plus, 55 until 65.
01:26:32It's 80% of my clientele.
01:26:35- And it's 80 bucks for the 20 minutes?
01:26:37- Like, I excluded the 9% VAT.
01:26:41So on average, 80 euros, yeah.
01:26:45- Okay, that's per 20 minutes.
01:26:47- Per month.
01:26:50- Per month, so they get four 20 minute sessions for 80 bucks.
01:26:54- Exactly, yeah.
01:26:55Margins could be 80% if we are doing like,
01:27:00if we are utilizing 85% of the sessions,
01:27:04which is the case in one of the three locations.
01:27:08The reason why I grew so fast to three locations,
01:27:10I acquired one last year for 15K, so basically nothing.
01:27:14And I set up another one, it's brand new.
01:27:17- Okay.
01:27:21So if you get these ones to full capacity,
01:27:23do you get to a million?
01:27:24- Not sure.
01:27:29- Well, what is a fully, what's a full facility make?
01:27:33- No, I was thinking to grow each facility to 300 people.
01:27:41- Okay.
01:27:43- So 900 in total, yeah.
01:27:46- Okay, got it.
01:27:47So what's the issue?
01:27:51- Right now, I'm not getting enough leads.
01:27:53I'm a little bit cash constrained as well,
01:27:55so I was doing like a lot of outreaches on WhatsApp,
01:27:58old numbers, old leads.
01:28:00Got me some new clients, old clients back, but--
01:28:03- How do you get customers now?
01:28:06- I'm sorry?
01:28:07- How do you get customers now?
01:28:08- Say, yeah, right now, right now at the moment,
01:28:14yeah, just with one reach out using the AI.
01:28:20- Well, good on my AI.
01:28:22But you need a more scalable way
01:28:24of getting customers right now.
01:28:26Not that that's not scalable.
01:28:27I mean, how many new customers can you get per day?
01:28:30- Yeah, if I'm doing the sales, I could do maybe, yeah, 10,
01:28:38but I also have a team.
01:28:39- You can get 10 customers a day via outreach?
01:28:43- Yeah.
01:28:44- Okay.
01:28:45Well then, shoot, that's 300.
01:28:4710 a day, 30 days, 300.
01:28:50You need to get 300 at each?
01:28:51- That's a lot, that's a lot, that's too much.
01:28:54But I also got a lot of clients using Facebook ads.
01:28:58But right now, yeah, because cash constraint,
01:29:02I didn't have the--
01:29:03- Well, are you actually cash constrained
01:29:05or is the offer that you're,
01:29:06what's the offer that you're advertising?
01:29:08- So right now, yeah, the offer we are advertising,
01:29:15I just set up some new ads today.
01:29:18What I know advertising is like,
01:29:20when people don't get like results in like four weeks,
01:29:24they get the next four weeks for me.
01:29:27- Sure, okay.
01:29:28What's the price though?
01:29:29- Like 97 euros and set up fee of 59 euros.
01:29:36- Okay, what's it cost to get a customer free right now?
01:29:46- With the old Facebook ads, it was like 200, 250 euros.
01:29:49- Per customer, okay.
01:29:54I mean, that sounds right.
01:29:55So it's not that you're cash constrained,
01:29:57it's that you're not charging enough on the front end.
01:29:59So you need to sell a defined end thing.
01:30:02So I think that you should have something
01:30:05that's called like on-ramp or on-board.
01:30:07So it's like, listen, we're able to sell PT at $80
01:30:10in small groups because people get on-boarded for six weeks.
01:30:14That on-boarding costs $600.
01:30:17And then at the end, like then you go into the normal thing.
01:30:20- So for the first six weeks, I charge.
01:30:25- 600.
01:30:26- 600.
01:30:28- Give them a meal plan, weigh them in every time.
01:30:33- Meal plan and?
01:30:36- And weigh them in.
01:30:37- Weigh them in.
01:30:39- Have you read my Gym Launch Secrets book?
01:30:44- No, no, no.
01:30:45- I wrote an entire book on how to run a gym.
01:30:47You should read that.
01:30:48- Yeah, I'm going to do that.
01:30:51- That is my first and only real recommendation right now.
01:30:55That being said, I think you were in a six week challenge.
01:30:58$600, you lose 20 pounds in six weeks.
01:31:02And if you do, you get the money back.
01:31:04- But yeah, the thing is that the people
01:31:09who come to our location is that--
01:31:13- They don't want to lose 20 pounds.
01:31:15Cool.
01:31:15So all we do is we make a different goal.
01:31:17They all want to tone up and feel good, right?
01:31:22- Yeah, like they want more.
01:31:25- I already know the problem.
01:31:26I was literally in the gym industry for a while.
01:31:28I know what we're dealing with here.
01:31:30So they want to get in shape.
01:31:33The biggest problem they have is accountability
01:31:35and the thing they're afraid of is getting hurt, right?
01:31:38- Yeah.
01:31:40- Right.
01:31:41So you sell that as the program.
01:31:42The reason that we do it this way
01:31:44is because people struggle with worried about getting hurt,
01:31:47which is why we do more onboarding
01:31:49to make sure you don't get hurt.
01:31:50You're worried about accountability,
01:31:51which is why we put the dollars on the line
01:31:52to make sure that you show up.
01:31:54And we want to make sure
01:31:55that you feel you get kickstarted in your fitness,
01:31:57which is why we're going to put some goal
01:31:58'cause if we don't measure progress,
01:31:59how are we going to know what's working?
01:32:01All right, so I'm going to take your body fat
01:32:02at the beginning, body fat at the end.
01:32:03You might stay the same weight,
01:32:05but we're going to change the numbers around.
01:32:06It gives you something to target towards.
01:32:08Now, three weeks in, we're going to say,
01:32:09"Hey, Sandra, hey, Dan, you guys have been doing great.
01:32:12"You're down four pounds.
01:32:13"How you feeling?
01:32:14"Amazing.
01:32:15"So you realize this is a lifelong journey, right?
01:32:17"Not something you're going to do in six weeks.
01:32:18"Yep, okay, amazing."
01:32:20So this is what I want to do.
01:32:21I want to match your commitment
01:32:22'cause you've already showed up
01:32:23every time you said you were going to,
01:32:24and hopefully you feel like I did too.
01:32:26I'm going to take that money that you put towards this
01:32:28and we're going to roll it towards the year.
01:32:29That way we can make this a lifestyle
01:32:31rather than a quick diet.
01:32:32How's that sound?
01:32:33Fantastic.
01:32:34You want to just prepay for the year right now?
01:32:36That's what most people do.
01:32:38(laughing)
01:32:39- It sounds like you said that a lot of times.
01:32:42- Yes, I've also taught 6,000 gym owners how to sell this,
01:32:46so yes.
01:32:46- But, okay.
01:32:50- Tell me why you don't think that's going to work.
01:32:52Go for it.
01:32:52Tell me.
01:32:53- Like, okay, I'm going to try this new offer
01:32:59and then I'm going to give that back to them,
01:33:01like the 600 euros they invested.
01:33:03- Yes, but how are we going to give it back to them?
01:33:08- I don't know.
01:33:10- We're going to credit it.
01:33:10We're going to credit it towards them staying for the year.
01:33:13You want to do that right now?
01:33:14- Okay.
01:33:19- So functionally what you're going to do
01:33:20is you're currently at 80 bucks, right?
01:33:22- Yeah.
01:33:24- You're going to pop the price up to 130.
01:33:27People are going to come in on this offer
01:33:28and then you're going to knock $50 a month off
01:33:30for the next 12 months.
01:33:31That's $600.
01:33:32So you're going to take 130, subtract $600 per month.
01:33:36That means you're going to be at 80 bucks a month,
01:33:37which is your current price,
01:33:38which means they can prepay for 1,000 bucks.
01:33:40They get the rest of the year.
01:33:41- Okay.
01:33:45Sounds good.
01:33:46- It also comes with a teacher.
01:33:47- And to be honest, I have to look up on the internet
01:33:53how to do the meal plans and everything.
01:33:56I've never done that, to be honest.
01:33:58- It's not hard, man.
01:33:59I promise you.
01:34:00The other thing you should do is after you meet them with them
01:34:02like you sell them right now,
01:34:05you should have a nutrition consultation.
01:34:06It's your first consultation.
01:34:08Sell 200, 300 bucks in supplements for the whole six weeks,
01:34:12which means they're going to need two months worth
01:34:13'cause it's six weeks.
01:34:14So you'll sell three or four products times two up front
01:34:18and that'll liquidate your cost of acquisition
01:34:19just on products.
01:34:20You don't have to do any more sessions.
01:34:22Cool.
01:34:23- Okay, okay.
01:34:25This is really important to me.
01:34:28So I just want to like reframe what you said to me.
01:34:31So yeah, I need to make sure that I understand
01:34:35what you're teaching me.
01:34:36So you offer 600, six weeks
01:34:41and I have to sell like supplements for six weeks.
01:34:44Supplements over like two or 300 bucks.
01:34:48And besides that, a meal plan.
01:34:53- And you weigh them in every week for the six weeks.
01:34:57And then give them a goal.
01:34:59If they hit the goal, they get it back.
01:35:01The point is not that they hit the goal.
01:35:02The point is that they start the process.
01:35:03You pitch halfway through.
01:35:04Do not wait till the end.
01:35:05- Okay, great.
01:35:09And then one more thing.
01:35:10I have to get them in, of course.
01:35:13Do you have any advice on the Facebook ads part?
01:35:19Like not that you have any advice.
01:35:22Like what I'm currently stuck at is creating ads.
01:35:27- Right now, static ads are doing the best.
01:35:29I know 'cause I talked to the gym launch team like last week.
01:35:32Static ads are outperforming video for most people.
01:35:34I still think that better video outperforms statics,
01:35:37but most people suck on camera.
01:35:38And so statics outperform video for most people.
01:35:42So if you're not good on camera, try statics first.
01:35:44My personal preference is to have videos
01:35:48of many customers working out in unison.
01:35:51So if you can get people to do sit-ups or push-ups in unison
01:35:54or jumping jacks in unison or ab cycles
01:35:56where they have their feet on the ground
01:35:57and they're doing the little thing.
01:35:58If you get everyone to do everything at the same time,
01:36:00it's very attention-grabbing.
01:36:01And then you have the offer in the copy.
01:36:03Cool?
01:36:04- Yeah.
01:36:06- All right. - Got it.
01:36:08- That's it, man.
01:36:08Easy peasy.
01:36:09A million bucks.
01:36:10- Thank you.
01:36:13Thank you very much, Alex.
01:36:14- Appreciate it, brother.
01:36:15- I've been waiting for this demo.
01:36:17- Buy my book.
01:36:18And then read it.
01:36:21All right.
01:36:24Before I take the next caller,
01:36:25I'm gonna shout out to the chat.
01:36:28Choose me, boss.
01:36:29Dude, Thug Life shows you, man.
01:36:32Here comes the flood.
01:36:34By the way,
01:36:35don't copy and paste the same question over and over again.
01:36:37It's just quite cringe.
01:36:38Cringe is how the kids say it these days, right?
01:36:40It's cringe.
01:36:41Is that appropriate, guy?
01:36:42It's cringe.
01:36:43Is cringe old now?
01:36:44Is cringe past?
01:36:45It's not sus.
01:36:48What is it?
01:36:49It's cooked?
01:36:51No, cooked is like I'm cooking them, right?
01:36:53Do I need to educate you on gins and shit?
01:36:56Jesus.
01:36:57We got a boomer over here.
01:36:58What are we talking about?
01:37:00All right.
01:37:01I'm 21.
01:37:02I'm broke.
01:37:02Supporting my mom with cold calls I hate.
01:37:04I want to learn.
01:37:06AI and creative.
01:37:07How would you escape?
01:37:08All right, man.
01:37:09I'm gonna answer this for you right now.
01:37:12Number one.
01:37:12Stop saying you fucking hate them.
01:37:15All right?
01:37:16Do you think the rice farmers in China 2000 years ago,
01:37:19shout out to China,
01:37:212000 years ago who were providing for their families
01:37:23were thrilled about bending over all day long?
01:37:27Calm down.
01:37:28And taking up rice, you know, one rice patio.
01:37:31I don't really know how rice is farmed,
01:37:33but something like that.
01:37:34Yeah, little fingers at a time.
01:37:35They have small hands.
01:37:36Anyway, a tremendous amount to be gained from realizing
01:37:39that you're doing something for people you care about.
01:37:42Right?
01:37:42Like you're doing this to provide for your family.
01:37:45Like I don't know if there's really a higher honor than that.
01:37:48And so when you're going into it,
01:37:50I'll tell you a little parable about this.
01:37:51So you might've heard this is the parable of the stone cutter.
01:37:54So guy walks up
01:37:56and there's three guys kind of hammering at stone.
01:37:59So he goes up to the first stone cutter and he says,
01:38:02"Hey, you know, what are you doing?"
01:38:03And he's like, "Oh, it's backbreaking work.
01:38:06I'm just hammering stone all day.
01:38:08It completely sucks."
01:38:09It's like, okay.
01:38:11The second guy he goes up to and he's like,
01:38:13"Oh, what are you doing, sir?"
01:38:14And he says, "Well, I'm providing for my family."
01:38:18And he's like, "Okay, that's cool."
01:38:19And that guy seemed a little bit more upbeat
01:38:21than the first guy.
01:38:22He goes to the third guy and he says,
01:38:23"Hey, what are you doing?"
01:38:25And he says, "I'm building a cathedral
01:38:27that's gonna last generations."
01:38:29And the moral of the story is that the work was the same.
01:38:32The only difference was their outlook on the work.
01:38:35And I think that if you change your outlook on the work,
01:38:37the work itself becomes significantly more bearable.
01:38:39Because even if you play out whatever version of the business
01:38:41that you wanna start is,
01:38:43the vast majority of your day
01:38:44is not gonna be doing shit you love.
01:38:45It's just not, right?
01:38:47There's just a lot of stuff that's like,
01:38:50I only say this as somebody who literally did this.
01:38:53I was in the make money career
01:38:55as a management consultant,
01:38:56which you then go to business school
01:38:57and become a banker or finance and you make money, whatever.
01:39:00And so I said, "You know what?
01:39:01I'm gonna do something I love.
01:39:02I'm gonna do fitness."
01:39:03Everybody tells me I've been into fitness my whole life.
01:39:04I was competing at the time.
01:39:05I was like, "This is what I'm into."
01:39:07So then I go and I say, "I'm gonna start a gym."
01:39:09I said, "That's what would make this real."
01:39:11And I start a gym and as soon as I start a gym,
01:39:12which is literally following my passion, following my dream,
01:39:14I then realize that I have to sell memberships.
01:39:17I have to mop the floors.
01:39:18I have to clean equipment.
01:39:19I have to market, I have to billing, pick playlists,
01:39:24all this nonsense that I had no interest in.
01:39:27And so what happened is that as I followed my passion,
01:39:3080, 90, 95% of what I was doing every day
01:39:33was not the thing that I thought it was.
01:39:34And so for almost everybody,
01:39:36if you think you're gonna follow your passion,
01:39:37it's gonna be literally doing the one thing
01:39:39that you love every day.
01:39:39You're beside yourself for two reasons.
01:39:41One, it's not gonna be.
01:39:42And two, if you literally did the same thing
01:39:44that you like every day,
01:39:45you're gonna stop liking it because you adapt to it.
01:39:47The reason you like it now is 'cause it's rare.
01:39:49It's a special thing that you get on your terms,
01:39:51on your time, and you do it for no money.
01:39:53And the thing is, is when you start,
01:39:54people are like, "I would do this for free."
01:39:56It's like, yeah, but you wouldn't do it all day,
01:39:57every day for free.
01:39:58At some point you'd stop 'cause they're reinforced,
01:40:01'cause that's how humans work.
01:40:03If there were one secret, we would all do it.
01:40:05The point is that things have to change
01:40:07and we expect that things are gonna stay the same
01:40:09and then we're somehow upset
01:40:10that life doesn't treat us the way we expect it to.
01:40:13And so to the young man who's broken 21,
01:40:15one, I think you should double down and get really good
01:40:17because you can absolutely get out of this poverty
01:40:19through the sales cycle, number one.
01:40:21Number two, if you want to say,
01:40:24"You know what, I'm gonna do the sale thing
01:40:26"and I'm gonna go all in in terms of my dedication to it.
01:40:28"I'm gonna spend eight hours, 10 hours a day."
01:40:31When you're on for sales,
01:40:32I want nothing else in your calendar.
01:40:34I want you to fall in love with the process.
01:40:35I wanna fall in love with the craft.
01:40:37I want you to sharpen your sword.
01:40:38That's what you're doing.
01:40:39You're sharpening the skillset.
01:40:40And whether AI takes it over or not in the future
01:40:42is irrelevant because you learning how to sell
01:40:44will be core to everything you do in life.
01:40:46Now, with the other hours of the day,
01:40:48I'm saying say 5 a.m. to 9 a.m., 5 p.m. to 9 p.m.
01:40:51All right, you got eight hours that you can play with
01:40:53plus weekends if you want.
01:40:55In that time, go learn the AI stuff that you want to learn
01:40:57that you said you were interested in
01:40:59and stop sitting on the sidelines
01:41:00and use the sales skills that you're practicing,
01:41:02cold calling, and go get yourself some fucking business.
01:41:05And then realize that it'll still be miserable
01:41:09because work is hard and all you have to do is reframe it,
01:41:12just like the third stone cutter.
01:41:13Be like, "Maybe it isn't miserable.
01:41:14"Maybe I'm doing something that I find meaningful
01:41:16"because I choose to make it meaningful."
01:41:18All right, with that, let us take on our final boss.
01:41:23Let's take on Bowser.
01:41:26Let's go.
01:41:26- Hello.
01:41:36- Hello.
01:41:36- Hi, my name's Adam, big fan of your work.
01:41:41I sell business training to business clients, right?
01:41:46So, small business.
01:41:48- When you say business training, what is it?
01:41:50Like, what is it?
01:41:51What do you teach them how to do?
01:41:53- So, I teach them how to grow the business.
01:41:55So, we have start-up training
01:41:58and we have growth training and scaling training.
01:42:00- Is it courses that are done in person or is it digital?
01:42:03- So, we've got a very, very heavy in-person model.
01:42:07- Okay.
01:42:08- And yeah, so last year we did 14.8 million pounds.
01:42:12- Badass.
01:42:13- Yeah, and we want to scale to 25 million.
01:42:17- Rock and roll.
01:42:18- Basically, the biggest constraint that we have,
01:42:21we have a few different constraints.
01:42:23Our acquisition method is that we run 12 to 15
01:42:28live in-person events on a monthly basis,
01:42:31which are three events.
01:42:32It's like our demonstrations of how we can help
01:42:35business owners.
01:42:36We, on average, have about 100 business owners per event.
01:42:39When they come to those events,
01:42:41we have an offer that's a thousand pounds
01:42:43and that filters that down to about 250 new clients
01:42:48per month required.
01:42:49And they go into bootcamp training,
01:42:53so they spend three days with us.
01:42:55And at the three days, we have a range of offers.
01:42:58Offers that suit start-ups start at about 5K
01:43:01up to 30K for our more advanced stuff.
01:43:05- Got it.
01:43:06- And we've got about an average per head revenue
01:43:08of about 5,000 heads for everybody that attends the bootcamp.
01:43:12It's a very, very consistent model, profitable model.
01:43:15- Yeah.
01:43:16- Want to take it forward to 25 million.
01:43:19That's the next phase.
01:43:20- Got it.
01:43:21- But we've got a few constraints
01:43:22and that is acquisition method for one, probably,
01:43:26and also the special skills around the acquisition method
01:43:30and a bit of geography as well.
01:43:32- Yeah.
01:43:33So right now, who's doing the pitching of the events?
01:43:36- So I've got about six to eight people that I've trained.
01:43:41So I don't go out on the road anymore.
01:43:43They are doing the pitching
01:43:46and we've got some really good ones,
01:43:48but it does take a long time to get those people up to speed
01:43:51to be able to do a really good job.
01:43:53And at the moment, that's where my focus is.
01:43:55So that's what I decided to focus on this year
01:43:57is to try and replicate that skill set as much as possible.
01:44:01It does take time, but we're working on that.
01:44:03- Well, let me ask you a question about the pitching.
01:44:05So when you have the pitch, is there a slide deck?
01:44:10- Yeah, yeah.
01:44:12- How many slides is it?
01:44:13- Exactly, I think 268 for the day.
01:44:21- Yeah, for the whole day.
01:44:23- Yeah, for the day.
01:44:25- Ah, all right.
01:44:26So let me just make your life 100 times easier
01:44:28for six days of work.
01:44:29Cool? (laughs)
01:44:31- Yeah, sounds good.
01:44:32- So the pitch should be word for word scripted
01:44:37on the slides.
01:44:41So my pitch at Money Models, the book launch,
01:44:44was 1,700 slides just for the 90-minute presentation
01:44:49that I get.
01:44:50Which means every word I said was on the screen
01:44:55paired with a visual for people
01:44:56who don't speak English that good.
01:44:58And so then--
01:45:03- Do you think a live in person, that would be,
01:45:06'cause this is all live in person,
01:45:08you'd still go down that road, yeah?
01:45:11- I don't know, I think we did like 70 million last year
01:45:13doing that in one of our companies, so yeah.
01:45:15I think it works.
01:45:17Think about this.
01:45:22If the words and the visuals are already taken care of,
01:45:26the only thing that you need to train them on
01:45:28is how fast to say the words, how loudly to say it,
01:45:31when to raise their voice, and when to lower it.
01:45:34And what to do with their hands.
01:45:41That does make a lot of sense.
01:45:43- That's it.
01:45:43Like literally, it takes all this time
01:45:46to get these people trained up,
01:45:47simply because you haven't had the pitch standardized.
01:45:49Standardize the pitch, put it in 1,700 slides,
01:45:52and I'm talking like one phrase, one sentence max per slide.
01:45:56And so what'll happen is you should be doing
01:45:59something between one slide per six to 10 seconds.
01:46:02And what that'll do is it'll keep attention,
01:46:07because it's always changing, right?
01:46:09And make sure that you pair the visuals
01:46:11with whatever is being said on the screen,
01:46:13because it maximizes comprehension.
01:46:14- Okay.
01:46:18- And if no one goes off script, which they shouldn't,
01:46:20because all the words are on the screen, right,
01:46:22it dramatically decreases variability.
01:46:24So what I would say is take the best pitches
01:46:26that you guys have done of all time,
01:46:27take the transcriptions, put them into the AI,
01:46:29come up with a master transcript that includes
01:46:31all the pieces that you think are most compelling,
01:46:33and then put that literally one sentence per slide
01:46:35across all the slides.
01:46:37You'll have, like, do the words first,
01:46:39then add the visuals to the slides, and then run it.
01:46:42- Yeah, that makes a lot of sense.
01:46:48And would you say that is the area of focus, then?
01:46:50You think just get, would you just do more
01:46:52in-person previews then, like?
01:46:55- Well, you have the-- - Geographics.
01:46:57- Yeah, you have the model, right?
01:46:58The hard part is getting the model done.
01:46:59I'm assuming you have good margins.
01:47:00We'd run like 40, 50% margins, something like that.
01:47:02- Yeah. - Yeah.
01:47:03You have a good model already.
01:47:04And so, like, the idea of, like,
01:47:06let's change the whole model up
01:47:07because we had a constraint that we already know how to solve.
01:47:09I'm not, I'd be like, well, why don't, like,
01:47:11we have 50% margin of business,
01:47:12and we know what we need to do to double it.
01:47:14So it's like, we can go from seven million in profit
01:47:16to 14 million in profit with one move,
01:47:18and we train six people on a slide deck to say words.
01:47:20You can do that in a week.
01:47:22- So go all in on training the speakers.
01:47:27- Yeah. - And really dial in the ditch.
01:47:29- Because if you tried to compete online,
01:47:31it would be significantly harder,
01:47:32especially if it's not, like, the main game.
01:47:34- That's what I'm experiencing.
01:47:36That's definitely what I've experienced 100%.
01:47:39We find that we are electric at what we do.
01:47:42- Yeah. - And then every time
01:47:43we try to transition that, our model, our money model,
01:47:46just gets thrown completely in that environment, right?
01:47:50That we're really great at what we do in person.
01:47:52- Yeah, I just, like, the constraint was the pitchers.
01:47:56Standardize the pitch, and also the training itself.
01:47:59Like, you could sit in a room
01:48:00and have them just rotate through it,
01:48:02and they should be, like, the way that I train,
01:48:04this is, you have the deck, you do it,
01:48:06they should do it 25 times, 50 times
01:48:10before they ever do it in front of you.
01:48:11And that means that you go up, they do it at home,
01:48:14they record it, it takes 90 minutes,
01:48:15they take a breather, grab some water, do it again,
01:48:1790 minutes, takes a breather, grab some water,
01:48:19do it again, 90 minutes.
01:48:21And then what happens is, say, send me your best one.
01:48:24They send you the best recording, and then they do it,
01:48:27like, you give them feedback so you don't have,
01:48:29you can watch it at 2x speed, whatever.
01:48:30And then when you feel like they're good enough,
01:48:32they do it in person.
01:48:34So, your net time for you is very low.
01:48:37And the risk of them botching a pitch,
01:48:41which is obviously the biggest cost for this raw,
01:48:43significantly lower.
01:48:44'Cause if they say the right words, the right way,
01:48:48at the right time, they will close.
01:48:50And I promise you, I've swapped out speakers
01:48:52more times than I can count.
01:48:53If the pitch works, the pitch works.
01:48:56- Brilliant, we've definitely done that
01:49:00at the high-ticket boot camp model,
01:49:02and been out to do it really, really well.
01:49:04We've really struggled with, at the front end,
01:49:06but that makes a lot of sense, that if actually,
01:49:09if I drill the people a lot more down--
01:49:12- People are still gonna crave in-person experiences.
01:49:15They're gonna wanna get out of the bubble,
01:49:16people wanna connect.
01:49:17So I think it's a good model.
01:49:19- Yeah, okay.
01:49:21Well, thank you, and thank you for everything,
01:49:23'cause, you know, your work's been amazing.
01:49:25- Thanks, man.
01:49:26- Absolutely love it, and appreciate it.
01:49:27- I appreciate you, man, congratulations on the success.
01:49:31- All right, thank you.
01:49:31- Yeah, rock and roll.
01:49:32- Brilliant.
01:49:34- Okay, 16 years old.
01:49:37What should I do to become the richest person?
01:49:39Not ask that question.
01:49:40Some of you guys asked the question in the chat,
01:49:45my team's telling me, how do I ask questions like this?
01:49:49So starting March 1st, I'm opening up a community on school
01:49:54for million-dollar-plus business owners.
01:49:55The link is in the chat.
01:49:57I select people who are VIPs in said community
01:50:02for the calls, and so that's what we're doing.
01:50:05If you wanna join the waitlist, like I said,
01:50:09we're gonna open up March 1st, and then we'll go from there.
01:50:13But yeah, I opened it up at the launch and closed it,
01:50:15so it's been closed for six months,
01:50:16and so we'll open it up again in March.
01:50:17So join the waitlist if you want to do that,
01:50:19you can go there at the link.
01:50:20Again, it's for million-dollar-plus business owners,
01:50:22and the main reason that I put this together
01:50:24is 'cause I wanted to have something that was very low cost
01:50:29relative to the verifications.
01:50:32Yeah, sure.
01:50:37And it looks like we've got a surprise guest
01:50:41who's gonna be joining us, so you might wanna stay tuned
01:50:45'cause it's about to get raunchy and nasty in here.
01:50:48So let's see here.
01:50:51Sean Christopher, what will you do if establishing a business
01:50:55is nearly impossible because of high fees and laws
01:50:57that are against you?
01:50:57Go under the radar or save up?
01:50:59I just, I reject the premise of the question.
01:51:02Like businesses exist in every country?
01:51:06Even the communist ones, I'm pretty sure.
01:51:09So, I mean, save up to, you know,
01:51:13an LLC doesn't cost that much money.
01:51:15I think that's just a terrible belief that you need to fix.
01:51:22Layla, divinity is in you.
01:51:24What are we talking about?
01:51:25Layla, you don't wanna talk to me, I'm right here.
01:51:27I'm the only one on here.
01:51:28What are we doing?
01:51:29What are we doing?
01:51:29Okay, syndicate text.
01:51:35What is the best way to improve speaking mechanism-based IP?
01:51:39Wait, speaking, ugh, missed it.
01:51:41Okay, how do I become mentally sharp and articulate like you?
01:51:44Practice, man.
01:51:45Ray, I think I have a video coming out
01:51:49where I actually show some of the first content I ever made
01:51:52that you guys probably have never seen before.
01:51:54It's like fitness content.
01:51:56And it's chopped, as the kids say, right?
01:52:00Chopped, it's chopped.
01:52:02It's quite shitty.
01:52:03And so if you saw the first ones and you see it now,
01:52:06like you literally need to give your mouth more reps.
01:52:09God, that sounds tough.
01:52:10Okay, thoughts on AI cold callers.
01:52:19They exist.
01:52:20Some are better than others.
01:52:21And over time, they will get better than most people.
01:52:25Let's see here.
01:52:26What would you do in 2026 to get rich?
01:52:29If only I had like seven videos that had that title
01:52:33that all have completely different contents inside
01:52:34because we just prefer to name everything
01:52:36the same title of video because the same things
01:52:41what they were, no one clicked, very sad.
01:52:44With that being said, we have our special guest
01:52:46who's just destroying my carpet.
01:52:49That carpet's done it's time.
01:52:54Do I want a scoot?
01:52:56No, you can get nice and close to it.
01:52:59This is nice, right?
01:53:00I'll move up.
01:53:01All right, here we go.
01:53:04Isn't this exciting?
01:53:05Did anyone expect this?
01:53:07Okay, well how's she gonna hear?
01:53:10Are we gonna, you wanna do that?
01:53:15Okay, otherwise we're gonna have to do one of these.
01:53:17That's gonna be tough.
01:53:18Okay, I mean, it looks like they prefer you to me,
01:53:23which I mean, all things considered, trapped.
01:53:28Let's see here.
01:53:29Yeah, Alex at $29,56 a month, enterprise 500 million.
01:53:37So close.
01:53:39Do you think I should start an AI lead generation company?
01:53:42Yeah.
01:53:43I put all my time and hard work in within the,
01:53:46how much time can I become more rich than you?
01:53:47Well, I can't tell you the secrets, bro.
01:53:50Why would I tell you all my secrets?
01:53:52Why would I make hundreds of pieces of content
01:53:54every single week telling you exactly what to do?
01:53:56What?
01:53:57My hair routine is literally do nothing.
01:54:02Actually to the point where I think Layla is disgusted.
01:54:04It's so disgusting, dude.
01:54:05Yeah, I literally do not, I don't even use shampoo.
01:54:08It's like crusted.
01:54:10Yeah.
01:54:11Like it's crunchy.
01:54:11I generally--
01:54:12Not from product.
01:54:13Yeah, people are like, is that product?
01:54:15I'm like, no, that's just oil.
01:54:18That's just good old fashioned musk.
01:54:20Yeah, musk is what that is.
01:54:22It was like a, just, what are you doing?
01:54:26I was laying on my teeth.
01:54:27All right.
01:54:28Yo, Chris here is running ads for businesses too competitive.
01:54:31Now, come on.
01:54:33Is advertising too competitive?
01:54:34What are we talking about?
01:54:36How do you know if you're too niche?
01:54:38If no one exists that can buy your product.
01:54:40Oh my God, these are so ugly.
01:54:41How do you put it on your hair?
01:54:45I have too much hair, I can't hear.
01:54:47Are you gonna call somebody on?
01:54:49Okay.
01:54:51Oh my God, I have a chia seed stuck in my tooth.
01:54:55Yeah, and for those of you who are curious,
01:54:56Layla also has been known to, she did,
01:54:59she has a workshop inside of the school community
01:55:02I was referencing earlier just on people.
01:55:05And it is wild.
01:55:08Somehow--
01:55:08Have you watched it?
01:55:09Have I watched it?
01:55:10I live with you.
01:55:11I watch it every day.
01:55:13That's right.
01:55:14I am it.
01:55:15It has become one with me.
01:55:17Okay, for a new clothing brand, start by testing,
01:55:20are you telling me?
01:55:21Or what are we?
01:55:22Okay, I wanna get the 10,000 a month.
01:55:24I work with some client already in the AI automation space.
01:55:26I don't even know if that's a question.
01:55:28Okay, can we slow it down somehow?
01:55:33So I can read it?
01:55:34All right, so, Layla, you wanna alternate?
01:55:41Here, I'll ask you the question.
01:55:43Okay.
01:55:44So, I'm representing Dr. Jacob Gooden.
01:55:47Okay.
01:55:48Scroll up a little bit so I can see it.
01:55:49No, other way, down.
01:55:51There we go.
01:55:52Keep going, keep going, keep going, keep going.
01:55:54Well, I lost it.
01:55:55All right, sorry, Dr. Jacob.
01:55:57We had it, it was a very nicely worded question.
01:56:00Zach Fine, wait, oh.
01:56:02Zach Fine, 5739.
01:56:04Do you think starting a lean remodeling company,
01:56:07owner operator, is better than hiring subcontractors at
01:56:10or vice versa?
01:56:14(silence)
01:56:16I honestly just think it's trade offs.
01:56:22I mean, like, if you're looking at any kind of business
01:56:25and you're looking at the model, it's like, okay,
01:56:28owner operator versus the subcontractors,
01:56:30it's just like pick your poison
01:56:32of what problems you're gonna have.
01:56:34So when you have subcontractors, you have less control,
01:56:37you're gonna have more times or more problems
01:56:39with people being loyal, you're gonna have more problems
01:56:41with people being flaky,
01:56:44you don't have much control over them.
01:56:46If you have owner operator, you're gonna have more control.
01:56:49You're also gonna have more responsibility.
01:56:51You're gonna have more oversight, more compliance,
01:56:54but you're gonna have more loyalty, more stability.
01:56:58So I think you have to understand what your goal is
01:57:00with the business and what your goal is personally.
01:57:03For example, if somebody were to say, hey,
01:57:07should I owner operated scale my gyms
01:57:10or should I do a franchise?
01:57:14It's like, okay, well, what's the goal
01:57:15and how fast do you need to get to the goal?
01:57:18And I don't assume that everyone has the same goals.
01:57:20So it's like, maybe you wanna build a enormous business
01:57:23that can be the best in its niche,
01:57:26or maybe you wanna build something that you can sell quickly.
01:57:30Then I think you kind of have to know
01:57:32what goal you're optimizing for,
01:57:34which is why I'm really bad at answering questions like this.
01:57:37What would you say?
01:57:39- Yes, that's how Layla and I's marriage conversations.
01:57:44- All right, well, there you go.
01:57:48Okay, let me ask you one now.
01:57:50- Ask Matthew Browns.
01:57:54- No, I'm gonna ask whatever I feel like it.
01:57:57- Sorry, Matt.
01:57:58- How would you fix a car rental business?
01:58:01Problem is marketing big competition.
01:58:03Consumers want the cheapest option.
01:58:06- Yeah, it's a tough one.
01:58:07- So I'm guessing the rental is for-
01:58:10- Why do I have this on?
01:58:12- What?
01:58:12Oh yeah, we're not taking calls.
01:58:14- It ruined my hair for nothing.
01:58:15- I know, yes.
01:58:17Your hair is ruined.
01:58:18Oh my gosh, it was for nothing too.
01:58:20So my God, it sounded so loud.
01:58:24I was shouting before I had these headphones on.
01:58:26Okay, so you have to beat them nationally.
01:58:28You have to beat them in one specific market
01:58:29and do something better than them.
01:58:30And so, I mean like famously,
01:58:32Avis was number two in the market and was like,
01:58:34"We try harder."
01:58:35And fundamentally, that is the winning strategy
01:58:37for the underdog, right?
01:58:41Is that you have superior service.
01:58:42The nice news is that the people who are at the top have,
01:58:44I think, in my opinion,
01:58:45and you've probably had a terrible experience as well,
01:58:47back when we rented cars, pretty shit day.
01:58:50So I think beating them on actual service
01:58:53is going to be good.
01:58:54I think like probably leaning into the soft touch,
01:58:58things that might be less scalable and less efficient,
01:59:01but have more human touch might be a way to win in the paint
01:59:05in a smaller market and win one market at a time.
01:59:09But I'm not going to lie,
01:59:10like it's not going to be an easy business.
01:59:11It is largely commoditized.
01:59:15Like your Honda Prius versus somebody else's Honda Prius
01:59:17is quite literally the same product.
01:59:19That being said, there's a ton of demand for it.
01:59:21And so availability is going to be one.
01:59:24Obviously, you could phone it,
01:59:25but just like making sure that you have traffic
01:59:27and you have the ability to convert.
01:59:28And I think you should be able to outsell them
01:59:30in terms of upsells in the sales process.
01:59:33I talk about it pretty famously.
01:59:35In the Money Models book.
01:59:36And so make sure that that sales process is dialed
01:59:38so that you can increase it.
01:59:40How much you make compared to them.
01:59:41Drawing flowers, or what are we doing?
01:59:45- Hearts. - Hearts, nice.
01:59:47Okay.
01:59:48Okay, Lucien Dohen.
01:59:52- You have to ask me a question.
01:59:53- I am. - Okay.
01:59:53- Layla, two year super fan.
01:59:55I've consumed your content.
01:59:56- And he's an Alex's fan, so you have to save that one.
01:59:59- Okay, woohoo, yes, ladies power.
02:00:01So let's go there, okay.
02:00:02Let's go Matthew Brown again.
02:00:05- Yeah.
02:00:06- So what is your, I remember the question you had earlier,
02:00:09which is what is your highest ROI
02:00:10or best social media channels right now?
02:00:13Between the ones that you're working on.
02:00:15- YouTube.
02:00:16- YouTube, all right, that's number one.
02:00:18- Yeah, I would say probably YouTube and Instagram.
02:00:20- Mm-hmm.
02:00:22- What about you?
02:00:23- I would also agree that YouTube and Instagram
02:00:25are my number one and number two.
02:00:27- Yeah.
02:00:27- And yeah, that goes for everybody.
02:00:28I actually did a huge video that broke down
02:00:30all of our lead flow and where it came from.
02:00:32- Did you really?
02:00:34- Yeah.
02:00:35- Did it get good views?
02:00:36- Crushed.
02:00:38- Someone should link it there.
02:00:39- Oh my God, and so I think the way to think about it,
02:00:43and I rank them kind of S-tiered or whatever,
02:00:45but it was like how much discoverability is there?
02:00:48How easy is it to generate kind of purchase intent,
02:00:51so like calls to action?
02:00:53And so I'll tell you something that we found from school
02:00:55is that Instagram generates significantly more traffic
02:00:58than YouTube does, but YouTube traffic converts it
02:01:00like three or four times the percentage.
02:01:02And so YouTube is still, for most,
02:01:04'cause a lot of people who are on school
02:01:05who have communities have some content of some sort.
02:01:08And so, and again, to be clear,
02:01:11some people have like 1,000 followers,
02:01:12so you don't need a lot, you just need something.
02:01:14And so the people who have it,
02:01:17they track where, 'cause we can see attribution.
02:01:19YouTube is making them more money,
02:01:22even though Instagram sends more traffic.
02:01:24But the first one and two for most people
02:01:27are gonna be those buckets.
02:01:28We have seen that people do well at monetizing TikTok,
02:01:32if they send the traffic to Instagram.
02:01:34Don't ask me why, but that's literally the CTA
02:01:37that they'll have inside their bio,
02:01:38so just a tactical hack for you.
02:01:39If you have trouble monetizing your TikTok,
02:01:41make the CTA like DM me on IG,
02:01:44and then that enters like the Instagram world.
02:01:47And for whatever reason, people are way more likely
02:01:48to do commerce and transact on Instagram,
02:01:50especially for more expensive stuff.
02:01:52Now, that being said, you've got podcasts,
02:01:55you've got emails, things like that.
02:01:57Those are what I would consider middle of funnel.
02:01:58People don't really get discovered.
02:02:00No one's like, "I just found this new email newsletter."
02:02:02That doesn't really happen, it's follow-up.
02:02:04And podcasts, honestly, nowadays very tough
02:02:07to get discovered via podcasts.
02:02:09More realistically, you repurpose your YouTube content
02:02:13as podcast material, and people discover your podcast
02:02:16through your YouTube content.
02:02:18So if I had two platforms that I would bet on,
02:02:20it would be YouTube and Instagram in terms of monetization,
02:02:24and I've just seen that across creators.
02:02:26- Nice.
02:02:29How did you guys meet?
02:02:30Real Greg, there you go.
02:02:32- That's my question?
02:02:33- Yeah.
02:02:33- We met on Bumble, Greg.
02:02:36I don't know if you've heard about it,
02:02:37but it's a dating app.
02:02:38And Alex had, I think his profile was like--
02:02:41- That looked sick.
02:02:44- Owned, it's four gyms working out whiskey.
02:02:49- Cheap bourbon, expensive steaks.
02:02:51- Expensive steaks, sorry, sorry, sorry, something cheesy.
02:02:53And then you had a picture of you--
02:02:55- She says as it converted her.
02:02:58- And then you had a picture of yourself from college
02:03:02in the water from spring break.
02:03:04- My, she says that I was 25.
02:03:07College was not like that long ago.
02:03:09- I know, but when I met you, I was like,
02:03:12you don't look the same.
02:03:12- I was bigger.
02:03:13- And then we met for Froyo for our first date.
02:03:19And I think Alex wrote me off immediately
02:03:21'cause I have a back tat.
02:03:22- I did.
02:03:23- And he saw it with, by the way,
02:03:24I got when I was like 18 and drunk and high, so sorry, but--
02:03:27- Yeah, it was tough.
02:03:29- Then you immediately were like rude to me.
02:03:31Not rude, but you just were very--
02:03:33- I was trying to get the date over with.
02:03:34- Neutral, and then we sat down and started talking.
02:03:36Then you warmed up, and then I realized
02:03:37that you needed to eat.
02:03:39And that was part of it.
02:03:40And then once you had the food,
02:03:41I think you were much friendlier.
02:03:43- Nothing like sprinkles to cheer the day up.
02:03:45All right, I'm gonna ask you a follow-up
02:03:47that's business related.
02:03:48- Me?
02:03:51- Yeah.
02:03:52- Okay, what do you wanna ask me?
02:03:53- Okay, give tips on how to get into a relationship
02:03:55when you're working to get to your best life.
02:03:57Like start a business and risk stuff.
02:03:59I know what that means.
02:04:00Crazy Chris.
02:04:01- I think it's funny when people say
02:04:02I wanna have my best life
02:04:03as if a relationship is not part of your best life.
02:04:05Find that ironic.
02:04:06Because we, for example, have built our lives together.
02:04:11I think it depends on what kind of relationship you want,
02:04:13but in general, people are like,
02:04:16well, it's just really hard and I don't have time.
02:04:18I'm like, well, what do you think it's like
02:04:19when you're in a relationship?
02:04:20- Even less time.
02:04:21- It's even less time.
02:04:22So, yeah, it's interesting.
02:04:25- Stuff out there.
02:04:27- Damned if you do, damned if you don't.
02:04:29- I think there's one thing
02:04:30that you said to me last night, actually,
02:04:32was you were talking about something--
02:04:33- Not convenient.
02:04:34- What?
02:04:34- It's not convenient?
02:04:35- Yeah, it's not convenient.
02:04:36And I think that's the thing is just like right now,
02:04:39we have this big societal like narrative
02:04:41that everyone should maximize all options.
02:04:44And so it's all about freedom and independence and like--
02:04:46- Like maximum efficiency.
02:04:48- Yeah, don't let anything tie you down,
02:04:50all that kind of stuff.
02:04:51But the thing is, is like,
02:04:52I think it's about having options
02:04:54so that you can make a selection.
02:04:56The goal is not to always maximize options,
02:04:58'cause at some point you need to decide.
02:05:01And so the easiest way that I can think about this is like,
02:05:04let's say you're like,
02:05:06I wanna maximize the options of where I live, right?
02:05:08And so as a result, you'll not have a home anywhere.
02:05:11'Cause you're like, well, I wanna be able to do the mountains
02:05:13and I wanna be able to do the valleys
02:05:15and I wanna be able to do the desert
02:05:16and I also wanna be able to do the snow.
02:05:18And the thing is, is like there is no location
02:05:19that does all those things, right?
02:05:21Unless you're in the Dubai Mall.
02:05:22But the idea follows, which is that like,
02:05:25in order to reap some of the rewards,
02:05:27you do need to pick, and when you pick,
02:05:30we define commitment as the elimination of alternatives,
02:05:32which means that if you're like,
02:05:33you said differently, you cannot have a lifelong partner
02:05:36and then also have ultimate optionality.
02:05:38If ultimate optionality is the thing
02:05:40that is more important to you,
02:05:41then you will not have a lifelong partner.
02:05:43And that's the choice.
02:05:44And to be clear, I don't think either of us
02:05:45are saying there's anything wrong with that.
02:05:46Just know the trade you're making.
02:05:48- Yeah, it's not convenient.
02:05:49I mean, it's like pursuing anything in life.
02:05:51It's like it's not gonna be convenient
02:05:52and is it worth the trade?
02:05:55- Yeah, Aiden Watson, I'm gonna go definitively yes
02:05:57for pineapple and pizza.
02:05:59Preferably pineapples and jalapeno.
02:06:01And I speak very, very aggressively about that.
02:06:05- I like ranch with pizza.
02:06:06- Yeah, 'cause you're ranching mac and cheese on the inside.
02:06:10Okay.
02:06:11- I like pineapple too, but I like ranch and pineapple
02:06:13rather than jalapeno and pineapple.
02:06:15Jalapeno is spicy, spicy in, spicy out.
02:06:17- Okay.
02:06:19Everyone knows that's true.
02:06:22- Jesus, what are we, am I asking?
02:06:25I asked you, so you asked me more.
02:06:26- He's like, I'm gonna ignore that.
02:06:27We don't talk like this on my channel.
02:06:30I don't care.
02:06:30- Pick one.
02:06:34- Me?
02:06:35Okay.
02:06:35Two year super fan at 19, I consumed all your content.
02:06:41Thousands of cold calls, pushing seven figures.
02:06:43How do I get in a personal relationship with both of you?
02:06:45Didn't expect that one.
02:06:46- That took a twist.
02:06:47- Sorry about that.
02:06:48- I would have ignored that one
02:06:49had I read the whole thing.
02:06:51- Gets it 50 million.
02:06:54- That's not even true.
02:06:56- I know, it's not even true.
02:06:59I don't know.
02:07:00I don't know, to be honest with you, man.
02:07:03Actually, there is a way, which is like if we have a role
02:07:07and you're like, I wanna spend five years learning
02:07:09and lead something, you can apply for a role at ACQ.
02:07:12That's actually the way to go.
02:07:13- And we were with our team most of the time.
02:07:15- Yeah, oh my God, by a lot.
02:07:16I mean, we have like 18 exits on the team.
02:07:20Like, we have a lot of people who started business,
02:07:22founded businesses, sold them, and then joined our team.
02:07:25So, yeah.
02:07:26All right.
02:07:29My husband and I run an in-home therapy company.
02:07:32We're about 40K a month and spread throughout
02:07:34five or six different cities, staff in each location.
02:07:36Should we focus on one city or just scaling across all?
02:07:39This is Lauren, 1998.
02:07:47- Can I understand, it's 40K a month total?
02:07:49- Yeah, I'm gonna guess.
02:07:50- Honestly, I would focus on getting the revenue
02:07:55per location up and the profit per location up,
02:07:58'cause that's pretty thin.
02:07:59- Yeah.
02:08:00- Like, you know, and I don't actually know
02:08:03what a therapy clinic margins or revenue typically looks like.
02:08:06- But you know it's more than 6,000 a month.
02:08:08- Yeah, I was gonna say it's more than 6,000 a month.
02:08:10So, I would say that we need to figure out
02:08:12at what point can you expand and you've already optimized
02:08:17the model.
02:08:17So, we always say like you've gotta nail it
02:08:19before you scale it.
02:08:20You've gotta nail the model
02:08:21before you actually scale the model.
02:08:23So, that means, okay.
02:08:24- It's all about nailing models.
02:08:25I'm with you.
02:08:26- Got it.
02:08:28So, what this means.
02:08:29- Money models, money models, gold digger model.
02:08:32- What this means is, thanks for just ruining my life.
02:08:37What this means is that you need to know
02:08:42what's the first product you sell,
02:08:43what's the second product you sell,
02:08:45what's the third product you sell.
02:08:47You need to have the entire customer journey mapped
02:08:49and optimized in each location before you scale.
02:08:51Because think about how hard it's going to be
02:08:53to add in all those things after you've already hired people,
02:08:56trained them on the old model.
02:08:58So, what we always talk about with franchises
02:09:00and brick and mortar locations,
02:09:01like we've gotta get the model right in location one.
02:09:04Or if you have a couple locations,
02:09:05then let's just focus on that.
02:09:07We have to optimize it,
02:09:07make sure we can get our maximum revenue
02:09:09and profit per customer.
02:09:11And then we can look at scaling.
02:09:13So no, I would not keep doing that
02:09:14because scaling adds complexity.
02:09:16And it's very hard to, I like to say like,
02:09:19if you've got a rowboat, which is like,
02:09:21say you have one location, it's like steering a rowboat.
02:09:23It's easy to steer, you can pivot fast.
02:09:25But, oh yeah, camera's over here.
02:09:26- Good metaphor.
02:09:27Good metaphor.
02:09:28- But if you have the Titanic, it's slow, it's hard to steer.
02:09:32You could see an iceberg and you could turn it
02:09:33and it could still hit the iceberg.
02:09:35And so, you know, the more locations you have,
02:09:37the more you're like the Titanic.
02:09:38- RIP Titanic.
02:09:40- Yeah, rest in peace, Titanic.
02:09:41And you want to be like a rowboat
02:09:42when you're making these decisions.
02:09:44And so when you're building up a model,
02:09:46the ideal is to keep it as lean as possible.
02:09:48And I think you can get a lot more revenue
02:09:49and profit per location before you do that.
02:09:52- Okay.
02:09:54- Cool.
02:09:56- Any you like?
02:10:00- Oh, am I supposed to pick one?
02:10:02Dude, your questions are so different than mine.
02:10:07- They're better.
02:10:09- They're way more tactical.
02:10:11I mean, I'm used to ones about people
02:10:14and about systems management.
02:10:17It's just interesting.
02:10:18It's like I forget.
02:10:19What would you do if you were 18?
02:10:22- Oh my God.
02:10:22That's such an open-ended question.
02:10:24- Fine, okay.
02:10:25- Do lots of shit.
02:10:27Find something you're good at.
02:10:28Do more of it than other people.
02:10:29Do so much it's unreasonable that you will fail.
02:10:31If you do something so much that's unreasonable you will fail,
02:10:34you will not fail.
02:10:35- Yeah.
02:10:36You know, I think one thing that's an underrated skill
02:10:37is understanding how to ask a good question.
02:10:41And I think that that's something that,
02:10:42like for a lot of you guys in the chat,
02:10:44like understanding how to ask somebody a question,
02:10:46like specificity matters.
02:10:48So if you say, what should I do about what
02:10:50in what time horizon?
02:10:51What is your goal?
02:10:52What's the context?
02:10:53The more detail you can drop into the chat,
02:10:55the better answers you're gonna get from Alex.
02:10:57- So we just did a bunch, like an hour, two hours.
02:11:00I don't know how long it was of calls.
02:11:02Think about the structure of it.
02:11:04I'm doing this much revenue.
02:11:06My business is I sell this to these people.
02:11:08This is the problem I'm dealing with
02:11:10and I want to get to hear.
02:11:11That's it.
02:11:12Current, desired, blockage.
02:11:15That's the question, right?
02:11:16- Yeah.
02:11:17Now if you structure your questions in that way
02:11:19you're gonna get way better answers.
02:11:20- Yes.
02:11:21Short questions equal long answers.
02:11:23Which is not a good thing.
02:11:26Okay.
02:11:27- No, I'm not doing that.
02:11:33- All right.
02:11:33- It'll take forever.
02:11:35- I think it's for me.
02:11:37- You have to stack your skills again.
02:11:38Oh no.
02:11:39- Okay, here we go.
02:11:45I got one.
02:11:45It's based on Rudy.
02:11:46Rudy L.
02:11:47Rudel.
02:11:48Rudel 908.
02:11:50How do I go about hiring people
02:11:52for a liquidation slash resale business
02:11:55that's a hundred miles away?
02:11:57Meaning can't be there all the time
02:11:58but could stop by occasionally.
02:12:00How do I set up systems for it?
02:12:02- Why?
02:12:04It's like literally what my mind was like, but why?
02:12:07It's like if you were just starting something
02:12:12and you don't have any quote systems,
02:12:13it's like, well, what's a system?
02:12:15Like, does anyone actually know what a fucking system is?
02:12:17You know what I mean?
02:12:18And so what's not a system is people remember to do something
02:12:21and so they do it because they remember it.
02:12:23Checklists that exist in your head.
02:12:25People who know how to do things
02:12:26but they don't have any guidance that they follow.
02:12:28A system is when you have a prompt
02:12:31that I would say the prompt triggers a behavior
02:12:33or an action and it does not rely on memory.
02:12:36Like that's the easiest way I'll put it.
02:12:37Is that the most correct definition of a system?
02:12:39No, but people get it.
02:12:41And so in the beginning, in order to design a system,
02:12:44you really have like two routes you can take,
02:12:45which is like, are you gonna have automation
02:12:47that prompts people?
02:12:48Are you gonna have a person that prompts people?
02:12:50If you have a location where you're not there,
02:12:53in order to figure out how a system works,
02:12:54you need someone to observe what needs to occur
02:12:56and to watch the system.
02:12:57So the first place I would start is like,
02:12:59do you have someone that's like a general manager in place
02:13:03to watch, to watch the people, to watch the staff,
02:13:06to build the systems?
02:13:07Am I in favor of like always hiring that from the get go?
02:13:10No, but if you're that far away from your location
02:13:13and you can't be there all the time,
02:13:15maybe stop by occasionally.
02:13:17Like I'm writing a book on leadership right now.
02:13:20And one thing that's very obvious
02:13:21is like the presence of a leader matters
02:13:23because you have to demonstrate what good looks like.
02:13:25So if you're not there to demonstrate what good looks like,
02:13:27you need someone there to demonstrate what good looks like.
02:13:29And then once that person understands
02:13:31and sets the bar for what good looks like,
02:13:33then it's like now I can design systems
02:13:35to continue prompting what good looks like,
02:13:36which is like, okay, I have automation, I have reminders,
02:13:38I have checklists, I have all these things.
02:13:41But I think it's gonna be really difficult
02:13:43if you don't have eyes on the ground there consistently
02:13:46to monitor while you're far away.
02:13:49That's where I would start.
02:13:50It's like, if you're not gonna be there,
02:13:51somebody needs to be there.
02:13:52- Cool.
02:13:56- All right, I'm gonna ask you one last question.
02:14:02- Oh, one last one, that'd be good.
02:14:04- Okay.
02:14:05Yeah, I keep scrolling.
02:14:11- Did I get a good one?
02:14:12- Yeah.
02:14:13Oh, wait, wait, wait, I found a good one.
02:14:20Wait, wait, back up a little more.
02:14:22Stop.
02:14:24I recently got diagnosed with ADHD
02:14:26and I suppose it explains a lot of the inaction
02:14:27I've always had.
02:14:28Should I just try to take meds for it or is that cheating?
02:14:31Or should I just try to use willpower for more discipline?
02:14:34- Where'd you give me this one?
02:14:37- Well, what have people told you?
02:14:39- Oh my God.
02:14:43- How many times have you been diagnosed with something?
02:14:45- Well, diagnosed or people selling you an ADHD as well.
02:14:49So I'll tell you a speech that I gave
02:14:54to someone that I cared about deeply
02:14:59who let ADD, ADHD, and other letters,
02:15:04I think, ruin their lives.
02:15:07And so when I had the conversation with this individual,
02:15:11I said, "What you see as a handicap, I see as a superpower."
02:15:15It's all how we frame it.
02:15:16Somebody who has ADHD or ADD
02:15:19typically has a harder time abandoning tasks
02:15:22and can focus on one thing for extended periods of time.
02:15:28The issue is that when that happens,
02:15:30it's like everything else disappears.
02:15:32And so the idea that you have something
02:15:35or don't have something, medicate, done medicate,
02:15:38I'm not a doctor, listen to your own,
02:15:40whatever legal disclaimer we'll put below here.
02:15:42But at the end of the day, shit needs to get done.
02:15:45And most of the time you have other things
02:15:47in your environment that are more interesting to you
02:15:50than the task at hand.
02:15:52And so I will explain how I work
02:15:54and different people work in different ways.
02:15:56What has worked well for me
02:15:57as somebody who's very easily distracted
02:15:58is that I remove all stimulus from the environment.
02:16:01And so let me give you an extreme example.
02:16:04If I were locked into a room that had no corners,
02:16:07all white, everywhere around,
02:16:09and there was nothing but a single black dot on the wall,
02:16:12what becomes the most interesting thing
02:16:14that gathers all my attention?
02:16:16The black dot.
02:16:17And so there's probably a black dot in the room
02:16:20that you are right now watching this,
02:16:22but you haven't noticed the black dot
02:16:23because there are other things
02:16:24that are competing for your attention.
02:16:27And so in order to focus,
02:16:29focus is through subtraction, not addition.
02:16:33There is no productivity hack that works.
02:16:35The only one is by removing everything else
02:16:37that removes productivity.
02:16:39And so somebody who is fully focused
02:16:41does literally nothing but the work.
02:16:43And the best way to make sure
02:16:44that you do nothing but the work
02:16:46is to make sure there's nothing else to do but the work.
02:16:49And so fundamentally, I think for you,
02:16:51you would get a larger lift in your throughput
02:16:54for your work capacity by removing everything else
02:16:57that you do that is not what you intend to do.
02:17:00And that is my productivity hack for you.
02:17:04So whether you want to medicate yourself or not,
02:17:07that's your call.
02:17:08I don't think it's gonna change much.
02:17:11I'll say it differently.
02:17:12There's a lot of people I know who take Adderall
02:17:13who still can't get shit done.
02:17:15So I don't think it's gonna be like,
02:17:19you'll probably benefit more from just exercising
02:17:22and limiting the stimuli in your work environment
02:17:25so that you have minimal disruptions.
02:17:27And I think what you need to do
02:17:28is you need to confront the work.
02:17:30The reality is that most times it takes significantly
02:17:33less time to accomplish a task
02:17:35than you think it does once you begin,
02:17:37but you delay longer from beginning the task
02:17:40than the entire task takes in totality.
02:17:42And so this is the classic,
02:17:44it takes 20 hours to become proficient at almost any skill.
02:17:46It's just that people delay the first 20 hours by a decade.
02:17:50You just keep waiting for some perfect environment
02:17:52that's never gonna happen.
02:17:55- That was a great answer.
02:17:56- Thank you.
02:17:58I appreciate that, my love.
02:17:59- Shall we wrap?
02:18:02- We shall wrap?
02:18:03- What?
02:18:11- All right.
02:18:13We love you all.
02:18:14We appreciate you all.
02:18:15If you guys like these, real quick in the comments,
02:18:17because we need approval to fill the holes in our souls,
02:18:20drop a fire emoji so that we can see
02:18:23that you guys actually like this.
02:18:24And if you like the Layla, the Layla cameo,
02:18:27maybe we will do more together.
02:18:29Or as the Spanish say.
02:18:30- Unlikely.
02:18:31- Juntos, right?
02:18:33Rafael said juntos.
02:18:35Como si dice together, juntos.
02:18:38- Bye.
02:18:40- Got some buyers.
02:18:40Got some buyers.
02:18:41- Not that many.
02:18:42- Yeah, not that many.
02:18:44Not that many.
02:18:46- Tough.
02:18:47- Yeah, not right now.
02:18:47- I don't know what was happening before I came in,
02:18:49but it doesn't look good.
02:18:51- So yeah, for those of you guys who wanted to hop
02:18:52on the calls, you can click the link to win the wait list.
02:18:54Starts March 1st.
02:18:55Anyways, appreciate you all rock and roll.
02:18:57See you next time.