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All right,
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everyone rocking and rolling. Everyone
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excited? Um hopefully you're as excited
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as I am uh to get to get going. Um I
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want to warn you first first and
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foremost up front. Um today will be
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conceptually significantly denser um
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than the last time you saw me talk. Uh,
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and so I just want to kind of have you
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mentally prepared for that.
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Additionally, I would consider having
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something up from a note-taking
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perspective. You guys all have access to
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the recordings here um, when we're done
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today, but uh, we have a lot to go over
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and I'm going to try and pack it in as a
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short period of time as possible. And so
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with each of the concepts that I'm going
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to outline around scaling, I'm going to
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try and provide as many examples as I
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can so that it can hopefully be relevant
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to you. And so that's kind of the
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general gist. And so we'll have kind of
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four portions of today. The first is
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kind of setting the frame for how to
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think through the rest of the day. Uh
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the second is going to be walking
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through basically the constraint
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framework that I have never shared yet.
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Um and part of that was in developing
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this workshop. I had to think through
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how do I actually approach a lot of
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different businesses to deconstrain
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them. And it turned out it was a very
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very large decision tree. But I was able
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to break it into um chunks that are
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really manageable. Uh and so that'll be
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kind of the second portion. The third
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portion will be taking those constraints
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and then applying them in a supply
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constraint dynamic. So some of you guys
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are demand constraint, some of you guys
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are supply constrained, meaning demand
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constraint means you don't you know
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you've got capacity but you need you
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need more customers. Supply constraint
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is you wish you could take on more
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customers but you can't because you've
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got other issues. And so we'll talk
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about that as kind of the third portion.
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Um, the fourth portion is going to be
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all around the implementation with the
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AI and the tools. And so I'll give you a
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handful of what I would consider like
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pre-anned
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stacks of playbooks and solutions that I
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see as very typical combinations of
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things that have to happen in specific
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types of businesses. Um, and then after
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that, we're just going to do some live
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ones uh to just walk through the exact
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same framework over and over and over
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again so I can give you ideally as many
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examples as I can. Uh, so you can be
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like, that's what I need to do. This is
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the order I'm going to do in and I'm
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good to go. Rock and roll. And yes, that
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is the Iron Man cave in the background.
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All right, so uh let's rock. Also, um
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I'm going to be using these a lot more
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today. And so this will be a little bit
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more of a hybrid because I think that'll
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be engaging. So I'll kind of alternate
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between the slides and the whiteboards
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back and forth. Um and I think hopefully
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it should be awesome. And if it isn't,
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then you can tell me it's awesome. So I
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feel you know good on the inside. All
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right. So without further ado uh the
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scaling implementation workshop
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constraints leverage and playbooks. All
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right. And so if I think about what
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we're trying to accomplish if I see
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learning as a change of behavior then
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there's really three core behavior
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changes that we're we're looking to do
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today. So number one is uh change your
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behavior in one way which is maximizing
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leverage. Uh that's number one. So, if I
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can just get everyone here to allocate
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your attention to the things that
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maximize leverage, you will get the
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highest return possible. Number two is I
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want to increase your odds of success of
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utilizing leverage by selecting the
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correct playbook and executing what's
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inside. And then goal number three is to
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increase your conviction around your
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selection and then use the AI tools uh
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by showing proof uh and use of outcomes.
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me actually demonstrating in front of
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you so you can feel really confident
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that this isn't some complex thing that
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you can actually just use this stuff.
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All right, so that's that's it. Like if
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we accomplish this, I'm stoked. Okay, so
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part one is around constraints,
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leverage, and compounding. And I see
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these as the core elements of business,
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right? Every business has a constraint.
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Uh we need to deconstrain it. In order
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to deconstrain it more effectively, we
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use leverage. If we do that uh
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successfully from a model perspective,
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we achieve compounding. If we do those
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three things, we have a business that
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will continue to grow. All right? And
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so, um, obviously some of you guys have
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consumed most of my stuff, but I almost
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always start with this because I like to
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set the precedent that
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it's very easy to get entertained by
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business content, right? And the
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difference between people who are
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entertained by business content and
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people who do business is that they
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actually change your behavior. And so,
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if after this you go back to the same
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conditions of wherever you're at and you
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don't change your behavior, you learned
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nothing. this was functionally just
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entertainment for you, which is fine if
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that's what you're, you know, that's
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what you signed up for. But, um, I think
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there are more effective ways, you know,
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to be entertained. Um, and so that being
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said, same conditions, new behavior, you
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turn off the computer, you look back,
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you're at home, you're at your
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workplace, whatever. If nothing changes,
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you learned nothing. So, I would
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encourage you to be very clear about the
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actions you plan to take after this uh,
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and even during today. All right. So my
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classic example of this is phone rings
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and you do you pick up and you say XYZ.
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If I say hey here's a script and then
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the phone rings and then you say XYZ
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again it means you learned nothing. If
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you now say the script then you learned
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something and specifically the script
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itself right and so that is a behavior
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change. So if we're talking about the
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skills of business right skills are
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actually a chain of adaptive behaviors.
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And so that is one behavior that I just
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mentioned. But if you chain multiple
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behaviors together, then you get a
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skill. All right? And so skills are
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chunked. And so this is why I think it's
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so difficult for sometimes for people to
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grasp uh or why they they can't get
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their employees to do something is
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because they talk in terms that are too
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chunked up. And I think the reason that
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the content that I've had has done, I
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would say, disproportionately well um
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has been because I try to put a lot of
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effort into chunking and breaking down
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concepts. And so here's a couple
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examples. So if someone's good at
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basketball, it's like no one can
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actually be good at basketball. What it
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is is they're good at a series of
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chunked up skills. So like underneath of
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basketball, you've got dribbling,
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shooting, and passing. And each of in
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within those, you've got free throws,
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you've got uh you know, three-pointers,
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you've got jump shots, you got bank
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shots, you've got hooks, you got all
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these different types of things. And so
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you have to keep breaking these down
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until you finally get to the most
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rudimentary level. But business works
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the same way, right? So it's like this
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guy's good at business. Every I think
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all of us want to be good at quote
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business. But if I were to direct
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someone, hey, learn business, it's like
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what does that mean? Right? And so
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within business, you've got marketing,
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you got sales, you got product, you got
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hiring, etc. And so what we what we seek
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to do is create the meta skills that
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then generalize across functions. All
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right? So like reading, writing, and
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speaking then allow you to learn stuff
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which allow you to figure stuff out,
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right? And in a sports context, hand eye
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coordination allows you to be pretty
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good at most sports which then
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generalize into basketball. And so what
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makes one person more successful than
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another given the same same directives?
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And this my whole goal here is to
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maximize likelihood of your success
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here. If you have the same directives
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and one person wins and one person
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doesn't, it's because they typically
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have other skills that were not taught
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by whatever the implementation was. And
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so this is fundamentally why results
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vary. All right? And so success, so if
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you want to write something down,
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success stops where you don't know how
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to do something. That is where it stops.
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Right? All right. So, if you imagine
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you've got, you know, you on one side
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and where you want to be on the other
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side, you've got these kind of logs that
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you have to jump from from thing to
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thing to thing to get across. But if you
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finally get to a spot where there's no
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log, which is functionally like you
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don't know what to do there, then you
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fall or you just stop and say, I don't
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want to die, right? And so, um, the goal
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is to basically try and fill up as many
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of those holes as humanly possible. And
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so,
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it's foundational. I like to state this
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obvious point because many of you also
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are in the space where you have to
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educate your customers. you have to
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educate an audience whether it's you
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know in your marketing you have to
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educate uh your employees so we we are
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all fundamentally educators in some some
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degree to or another right and so it's
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like why do two people come in and some
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people succeed and some people don't and
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so like in the example I'm using here
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because we only have a limited amount of
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time in general with any individual
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audience etc right and so if some people
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get results and some people see no
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results
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then the issue is that there is going to
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be a gap in their knowledge base, right?
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And so if we wanted to get 100% and I
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mean truly 100% of people results, which
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is possible, I I fundamentally believe
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that's possible. The thing is is it
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worth it? Because if I were to try if I
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were to try to approximate that, I would
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need to re-educate everyone from K to
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12, right, from kindergarten all the way
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to 12th grade, get everyone the
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foundations first of like here's how you
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read, here's how you do math, here's how
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you speak, here's how you think, here's
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how you make make decisions, right? And
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so
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almost none of us can say that it is
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worth it for us to do that for like
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let's say an employee who comes in. You
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expect they know how to turn on a
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computer. You expect they know how to
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use an iPhone. You expect that they know
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how to use the internet. Expect how to
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send an email. And so at some level we
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have to cut off and say these are the
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requisites in order to be an employee.
275
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These are the requisites in order to be
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a customer. Right? And so um I use this
277
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as an extreme example here but if you
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can't read it doesn't matter how good my
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books are. Right? If you can't stay
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focused, it doesn't matter what the
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tactics are because you're not going to
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stick with it long enough, which is a
283
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whole other basket of skills. If no one
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likes you, it's going to be very
285
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difficult for you to attract key talent.
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And so, the reality is that results vary
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based on your background, education,
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experience, and application. And this is
289
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not an FTC compliance thing. This is me
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just like being like upfront about why
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results vary between people. And I think
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it's worth understanding this because
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the thing is is that this allows you to
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take ownership. I'm very proud of the
295
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fact that I've been pretty much every
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single thing I've ever bought's biggest
297
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success story. And the reality is that
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it's not because and like this is
299
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hopefully not in a self agrandizing way,
300
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but if they work with 20 people and I
301
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have the best results, then it means
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that I have other skills that the other
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19 people didn't have. And as a result,
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those additional skills
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disproportionately contributed to the
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outcome. That's the difference.
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And so if we think about learning as a
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bridge, every step is needed, right?
309
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Like you can't skip a step to get
310
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across. Like you have to have every
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single foundational piece and so the
312
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more general skills you have the more
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gaps you can fill when someone provides
314
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incomplete information which is the vast
315
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all of us provide incomplete information
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right otherwise we literally have to
317
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start at zero and start at goooo gaga
318
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and then go all the way to coding AI
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right it's just we don't have the time
320
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to do it so if you're going to do any
321
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kind of implementation I like to
322
00:19:41,520 --> 00:19:43,039
approach it from the perspective of what
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skills do I lack or what things do I
324
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need to fill in the gaps for in order to
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be successful and the moment where I get
326
00:19:48,480 --> 00:19:50,000
stuck is oh there's something I don't
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know how to do and therefore my ability
328
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to figure it out becomes very important
329
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and so your results will be proportional
330
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to your existing domain skill period and
331
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so that makes the ability to figure out
332
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one of the most important skills to have
333
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it's a meta skill right and so um what's
334
00:20:08,720 --> 00:20:10,000
interesting about this is that if you
335
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say hey um hey Alex can you build a
336
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business I could say okay that's a very
337
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general uh request right but then I just
338
00:20:18,720 --> 00:20:20,480
have a big background of other skills, a
339
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big bucket of skills behind me. Now, to
340
00:20:22,480 --> 00:20:23,440
the same degree, if you go to Michael
341
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Jordan and say, "Hey, just win." He
342
00:20:24,880 --> 00:20:27,520
could, right? But you tell that to a
343
00:20:27,520 --> 00:20:28,880
5-year-old and you're like, "Just win."
344
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And they're like, "But how do I tie my
345
00:20:30,080 --> 00:20:32,480
shoes?" Right? It's like we have to
346
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start where the person's at. And again,
347
00:20:34,240 --> 00:20:36,960
I put this as a preframe for today just
348
00:20:36,960 --> 00:20:41,200
to set the context. And so, as an aside,
349
00:20:41,200 --> 00:20:42,799
um, a really good framework. So, this is
350
00:20:42,799 --> 00:20:44,799
a first of of a few frameworks that I'll
351
00:20:44,799 --> 00:20:46,320
share with you just kind of ad hoc as we
352
00:20:46,320 --> 00:20:48,799
go through this, but let's say that
353
00:20:48,799 --> 00:20:50,799
you're looking at, uh, you know, two
354
00:20:50,799 --> 00:20:52,640
potential people. Uh, you've got, you
355
00:20:52,640 --> 00:20:54,640
know, hire one
356
00:20:54,640 --> 00:20:57,360
and you've got hire two.
357
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And this is super important for many of
358
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you who have employees, uh, or would
359
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like to have employees at some point in
360
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the future. So let's say this person is
361
00:21:05,520 --> 00:21:08,960
uh I just this is the classic attitude
362
00:21:08,960 --> 00:21:13,039
attitude. There we go. Uh aptitude uh
363
00:21:13,039 --> 00:21:14,480
dynamic. I'm sure you guys have probably
364
00:21:14,480 --> 00:21:18,799
heard the statement um hire for attitude
365
00:21:18,799 --> 00:21:21,200
and then train aptitude something to
366
00:21:21,200 --> 00:21:23,520
that degree, right? And then this one
367
00:21:23,520 --> 00:21:24,960
let's just say this guy has great
368
00:21:24,960 --> 00:21:26,480
attitude and doesn't have the best
369
00:21:26,480 --> 00:21:29,200
skills and this guy has uh you know
370
00:21:29,200 --> 00:21:30,960
doesn't have the best attitude but has
371
00:21:30,960 --> 00:21:34,480
the skills. Okay. So if you're looking
372
00:21:34,480 --> 00:21:37,440
at this, which would you hire? Now
373
00:21:37,440 --> 00:21:41,039
depending on the uh the answer, the
374
00:21:41,039 --> 00:21:42,480
actual answer here is that it depends on
375
00:21:42,480 --> 00:21:46,159
the nature of the role. But the the the
376
00:21:46,159 --> 00:21:51,840
single golden truth is that you hire
377
00:21:51,840 --> 00:21:56,200
for the smallest skill deficiency.
378
00:21:57,760 --> 00:22:00,400
And so what that means is
379
00:22:00,400 --> 00:22:03,120
if I have hire one and hire two, right?
380
00:22:03,120 --> 00:22:04,960
If I have something that the aptitude
381
00:22:04,960 --> 00:22:07,600
that I'm trying to teach takes,
382
00:22:07,600 --> 00:22:10,080
you know, a day, I'm for sure going to
383
00:22:10,080 --> 00:22:11,760
hire for attitude. Because for me to
384
00:22:11,760 --> 00:22:13,760
teach someone to like be kind, be
385
00:22:13,760 --> 00:22:15,919
respectful, smile, be nice, all that
386
00:22:15,919 --> 00:22:17,760
kind of stuff, which are all chunked up
387
00:22:17,760 --> 00:22:19,039
terms that have many, many skills
388
00:22:19,039 --> 00:22:21,280
underneath of them, then for sure I'm
389
00:22:21,280 --> 00:22:23,039
gonna say, well, I could teach this in a
390
00:22:23,039 --> 00:22:25,760
day. This would take me years. So I I
391
00:22:25,760 --> 00:22:27,440
don't want to do that. So, I'm going to
392
00:22:27,440 --> 00:22:29,840
hire for the small skilled efficiency.
393
00:22:29,840 --> 00:22:32,000
Now, let's flip it over. If I'm trying
394
00:22:32,000 --> 00:22:36,400
to hire the foremost AI researcher,
395
00:22:36,400 --> 00:22:37,919
and I'm saying, okay, well, this guy's,
396
00:22:37,919 --> 00:22:40,159
you know, a bit weird, you know, I mean,
397
00:22:40,159 --> 00:22:42,240
keeps to himself, bit in the closet.
398
00:22:42,240 --> 00:22:43,600
That sounds a bit weird. Not like that.
399
00:22:43,600 --> 00:22:45,760
Calm down. Okay. You know, we've got
400
00:22:45,760 --> 00:22:47,600
this attitude uh bit of an attitude
401
00:22:47,600 --> 00:22:50,000
issue, but man, the guy really knows.
402
00:22:50,000 --> 00:22:51,600
Well, if I had another guy who's there
403
00:22:51,600 --> 00:22:52,880
who's like, well, he doesn't really know
404
00:22:52,880 --> 00:22:55,760
the AI that well, um, but he's a really
405
00:22:55,760 --> 00:22:58,400
great guy, who do you hire? Well, it
406
00:22:58,400 --> 00:23:00,400
depends on the role. And specifically
407
00:23:00,400 --> 00:23:02,320
with this one, it would cost me way more
408
00:23:02,320 --> 00:23:04,080
time to to teach somebody who's a nice
409
00:23:04,080 --> 00:23:06,480
person who who works hard how to do AI
410
00:23:06,480 --> 00:23:08,559
research versus trying to get this guy
411
00:23:08,559 --> 00:23:10,559
who really knows AI how to just smile
412
00:23:10,559 --> 00:23:11,919
every once in a while and not call
413
00:23:11,919 --> 00:23:14,559
everyone a dick or an idiot, right? And
414
00:23:14,559 --> 00:23:16,640
so this is fundamentally how I like to
415
00:23:16,640 --> 00:23:18,880
approach hiring when I'm thinking about
416
00:23:18,880 --> 00:23:20,880
specific roles. If you deal with what I
417
00:23:20,880 --> 00:23:22,640
would consider to be lowkilled roles,
418
00:23:22,640 --> 00:23:24,159
then it's absolutely true that attitude
419
00:23:24,159 --> 00:23:25,919
over aptitude for sure because there's
420
00:23:25,919 --> 00:23:28,240
so many more skills here, right? The
421
00:23:28,240 --> 00:23:29,840
more high-skilled, the more high
422
00:23:29,840 --> 00:23:33,039
aptitude you require for a role, then
423
00:23:33,039 --> 00:23:34,880
the more uh the more that will matter
424
00:23:34,880 --> 00:23:37,600
more than trying to and the thing is is
425
00:23:37,600 --> 00:23:39,200
you'll start to learn how to train
426
00:23:39,200 --> 00:23:41,200
attitude, right? because you'll see
427
00:23:41,200 --> 00:23:43,679
attitude as just a bucket of behaviors
428
00:23:43,679 --> 00:23:45,360
of like, okay, what are the things that
429
00:23:45,360 --> 00:23:46,400
increase the likelihood that people
430
00:23:46,400 --> 00:23:48,000
don't complain about you? What are the
431
00:23:48,000 --> 00:23:49,039
things that increase the likelihood that
432
00:23:49,039 --> 00:23:50,080
people like you? Okay, well, it turns
433
00:23:50,080 --> 00:23:51,120
out there's only like, you know, six or
434
00:23:51,120 --> 00:23:52,559
seven things that you have to do on a
435
00:23:52,559 --> 00:23:54,080
consistent basis within a work setting
436
00:23:54,080 --> 00:23:55,520
to decrease the likelihood people
437
00:23:55,520 --> 00:23:56,960
complain about you, right? So, let's
438
00:23:56,960 --> 00:23:58,080
just learn how to train those
439
00:23:58,080 --> 00:23:59,520
consistently. And then all of a sudden,
440
00:23:59,520 --> 00:24:01,120
we open up our aperture, the amount of
441
00:24:01,120 --> 00:24:04,320
people that we can take in um who are
442
00:24:04,320 --> 00:24:05,840
really good but aren't that really good
443
00:24:05,840 --> 00:24:09,280
with people. All right. Now, the reason
444
00:24:09,280 --> 00:24:12,159
I see this is important is that
445
00:24:12,159 --> 00:24:14,400
for many of you, believe it or not, one
446
00:24:14,400 --> 00:24:16,000
of the big issues you have is that you
447
00:24:16,000 --> 00:24:18,400
sell to everybody. Meaning, you allow
448
00:24:18,400 --> 00:24:19,919
anyone to walk in the door and then
449
00:24:19,919 --> 00:24:22,000
you're surprised by the fact that your
450
00:24:22,000 --> 00:24:23,600
results vary so widely. And sometimes
451
00:24:23,600 --> 00:24:24,960
you're like, oh, you know, some people
452
00:24:24,960 --> 00:24:26,480
are amazing and I've got all these other
453
00:24:26,480 --> 00:24:27,760
people just they don't do anything. It's
454
00:24:27,760 --> 00:24:28,640
like, yeah, it's because you let
455
00:24:28,640 --> 00:24:30,159
toddlers in and you try to teach them to
456
00:24:30,159 --> 00:24:32,960
code. Of course not. Right? Which is why
457
00:24:32,960 --> 00:24:35,120
there are standards, which is why having
458
00:24:35,120 --> 00:24:37,039
requisites becomes incredibly important.
459
00:24:37,039 --> 00:24:38,559
There's a reason that Spanish one is
460
00:24:38,559 --> 00:24:41,760
required to do Spanish 2. And so for
461
00:24:41,760 --> 00:24:43,120
many of you, one of the big things you
462
00:24:43,120 --> 00:24:44,799
can probably write down today is like
463
00:24:44,799 --> 00:24:47,760
what are what if I if I had to pick what
464
00:24:47,760 --> 00:24:50,799
requirements would must exist for my
465
00:24:50,799 --> 00:24:52,960
customers to maximize the likelihood
466
00:24:52,960 --> 00:24:54,799
that they would they would win, right?
467
00:24:54,799 --> 00:24:57,039
We can probably tell or you probably
468
00:24:57,039 --> 00:24:58,880
already know if you looked at your whole
469
00:24:58,880 --> 00:25:01,919
customer base like on the phone call or
470
00:25:01,919 --> 00:25:03,440
on the on the sales consultation or
471
00:25:03,440 --> 00:25:04,960
whatever way you sell, right? You
472
00:25:04,960 --> 00:25:06,480
probably know some specific way that
473
00:25:06,480 --> 00:25:08,080
you're like, "Oh, this guy's going to
474
00:25:08,080 --> 00:25:10,400
crush it." Well, then if you know the
475
00:25:10,400 --> 00:25:11,279
difference between somebody's going to
476
00:25:11,279 --> 00:25:12,880
crush it and one that you're like, well,
477
00:25:12,880 --> 00:25:15,120
you probably shouldn't let the in. And
478
00:25:15,120 --> 00:25:16,559
then you should say, okay, well, if
479
00:25:16,559 --> 00:25:18,000
everybody crushed it, how much more
480
00:25:18,000 --> 00:25:19,760
could I charge? Probably orders of
481
00:25:19,760 --> 00:25:21,840
magnitude more. And then maybe that's
482
00:25:21,840 --> 00:25:23,760
the right avatar and we have to get
483
00:25:23,760 --> 00:25:25,679
narrower with who we select for, which
484
00:25:25,679 --> 00:25:27,440
means we've increased our standards.
485
00:25:27,440 --> 00:25:28,960
This is a huge issue with service
486
00:25:28,960 --> 00:25:30,559
businesses, which based on the surveys
487
00:25:30,559 --> 00:25:32,960
that I saw from you guys, it's like 75%
488
00:25:32,960 --> 00:25:34,880
of you, which is why I bring this up.
489
00:25:34,880 --> 00:25:37,840
Okay. Um,
490
00:25:37,840 --> 00:25:39,679
and so yeah, and so if we look at these
491
00:25:39,679 --> 00:25:41,200
two uh these two images I have here,
492
00:25:41,200 --> 00:25:42,559
like the big jack guy and the and the
493
00:25:42,559 --> 00:25:44,480
wobbly knees person, if we have to get
494
00:25:44,480 --> 00:25:46,320
them across this bridge, right, of all
495
00:25:46,320 --> 00:25:48,320
these different logs, which of them are
496
00:25:48,320 --> 00:25:49,760
we going to have higher confidence is
497
00:25:49,760 --> 00:25:50,799
going to get across? Well, obviously
498
00:25:50,799 --> 00:25:52,640
the, you know, the gymnastic dude,
499
00:25:52,640 --> 00:25:54,080
right? But the thing is is that our
500
00:25:54,080 --> 00:25:57,279
bridge is our product, is our customer
501
00:25:57,279 --> 00:25:59,600
experience. And so if two people can
502
00:25:59,600 --> 00:26:01,440
come in and we get to be the gatekeeper
503
00:26:01,440 --> 00:26:04,320
of who we choose to let in, then we're
504
00:26:04,320 --> 00:26:05,840
the ones who are at fault when someone
505
00:26:05,840 --> 00:26:09,200
doesn't succeed to a large degree. But
506
00:26:09,200 --> 00:26:10,400
it doesn't mean, oh, I now have to
507
00:26:10,400 --> 00:26:12,159
educate everyone through K2 because that
508
00:26:12,159 --> 00:26:13,840
might not be worth it. You're just
509
00:26:13,840 --> 00:26:15,360
saying, no, you have to graduate high
510
00:26:15,360 --> 00:26:17,039
school in order to do this thing, right?
511
00:26:17,039 --> 00:26:18,320
You have to be able to make you have to
512
00:26:18,320 --> 00:26:19,600
be making $10,000 a month in your
513
00:26:19,600 --> 00:26:21,279
e-commerce store, whatever. Right?
514
00:26:21,279 --> 00:26:22,720
There's a couple things that must happen
515
00:26:22,720 --> 00:26:25,279
in order if you get the outcome.
516
00:26:25,279 --> 00:26:27,520
That's why prerequisites matter. And so
517
00:26:27,520 --> 00:26:29,279
fundamentally, this is why I define
518
00:26:29,279 --> 00:26:31,200
terms so many times throughout
519
00:26:31,200 --> 00:26:33,440
presentations. And it's because I
520
00:26:33,440 --> 00:26:34,960
understand that some percentage of
521
00:26:34,960 --> 00:26:37,279
people might not understand this term.
522
00:26:37,279 --> 00:26:39,360
And as a result, that's where they stop.
523
00:26:39,360 --> 00:26:41,360
Right? Success stops the moment you
524
00:26:41,360 --> 00:26:43,440
don't know how to do something. And so
525
00:26:43,440 --> 00:26:45,520
if I am describing something, I try to
526
00:26:45,520 --> 00:26:47,200
describe it in multiple ways so that we
527
00:26:47,200 --> 00:26:49,279
can keep the the mental conversation
528
00:26:49,279 --> 00:26:50,880
going so I can pull as many people along
529
00:26:50,880 --> 00:26:52,400
as possible. And I and I translate this
530
00:26:52,400 --> 00:26:53,919
for you so they understand why I do what
531
00:26:53,919 --> 00:26:56,240
I do. So that hopefully whatever modum
532
00:26:56,240 --> 00:26:57,760
of success I've had, I can hopefully
533
00:26:57,760 --> 00:27:00,159
transfer over. All right? And I actually
534
00:27:00,159 --> 00:27:01,520
I believe that there's an ethical
535
00:27:01,520 --> 00:27:03,039
responsibility to set prerequisites to
536
00:27:03,039 --> 00:27:04,960
the highest degree possible. Um
537
00:27:04,960 --> 00:27:07,360
especially in services uh more than
538
00:27:07,360 --> 00:27:08,799
anything else. self-s serve is a little
539
00:27:08,799 --> 00:27:11,600
bit different but services especially um
540
00:27:11,600 --> 00:27:12,880
I think we have an ethical
541
00:27:12,880 --> 00:27:14,640
responsibility not to just say hey I can
542
00:27:14,640 --> 00:27:16,559
sell these people but more so who should
543
00:27:16,559 --> 00:27:20,799
I be selling to all right now
544
00:27:20,799 --> 00:27:22,960
that we got that out of the way uh your
545
00:27:22,960 --> 00:27:25,679
first behavior change
546
00:27:25,679 --> 00:27:27,279
my goal is for you to focus on your
547
00:27:27,279 --> 00:27:29,039
highest return activity which we refer
548
00:27:29,039 --> 00:27:30,799
to as the constraint the constraint of
549
00:27:30,799 --> 00:27:32,640
the business so this is uh this is a
550
00:27:32,640 --> 00:27:34,960
drawing I have of before and after so if
551
00:27:34,960 --> 00:27:36,720
you've got a four-lane highway and then
552
00:27:36,720 --> 00:27:38,480
you've got a one lane That's where the
553
00:27:38,480 --> 00:27:39,520
money is at and you're only going to
554
00:27:39,520 --> 00:27:43,200
flow at a one money pace. Right now, if
555
00:27:43,200 --> 00:27:44,240
we're if you're work if you're looking
556
00:27:44,240 --> 00:27:45,919
at this left to right, so start at the
557
00:27:45,919 --> 00:27:47,919
bottom left, that one at the halfway
558
00:27:47,919 --> 00:27:50,159
point there, you've got potential, which
559
00:27:50,159 --> 00:27:53,679
means many times we work to add
560
00:27:53,679 --> 00:27:55,440
potential to the system. If you go from
561
00:27:55,440 --> 00:27:57,600
four lanes to five lanes there, did you
562
00:27:57,600 --> 00:28:00,000
do nothing? No, you didn't increase
563
00:28:00,000 --> 00:28:01,120
throughput, meaning you're not going to
564
00:28:01,120 --> 00:28:03,039
get more dollars out the other side. But
565
00:28:03,039 --> 00:28:04,799
you did do something. you added
566
00:28:04,799 --> 00:28:07,360
potential, meaning once the constraint
567
00:28:07,360 --> 00:28:09,120
is resolved, you'll be able to grow that
568
00:28:09,120 --> 00:28:11,360
much more that much faster. But until
569
00:28:11,360 --> 00:28:12,880
the constraint is resolved, you will
570
00:28:12,880 --> 00:28:15,679
stay the same. And so where we allocate
571
00:28:15,679 --> 00:28:16,799
effort is where we're going to get the
572
00:28:16,799 --> 00:28:19,120
highest return. And so my first and most
573
00:28:19,120 --> 00:28:20,559
important behavior change today is to
574
00:28:20,559 --> 00:28:22,559
get you to focus on the constraint and
575
00:28:22,559 --> 00:28:23,760
stop doing whatever it is that you're
576
00:28:23,760 --> 00:28:25,840
doing that's not growing the business.
577
00:28:25,840 --> 00:28:27,440
And one of the key points around this is
578
00:28:27,440 --> 00:28:29,919
that there's only one constraint.
579
00:28:29,919 --> 00:28:32,799
There's only one. There's one today and
580
00:28:32,799 --> 00:28:34,000
there's going to be one in six months
581
00:28:34,000 --> 00:28:36,000
and there's gonna be one in two years.
582
00:28:36,000 --> 00:28:38,320
There's always only one. That's how
583
00:28:38,320 --> 00:28:41,360
constraints work. You can always keep
584
00:28:41,360 --> 00:28:43,520
tracing it back until there's one point
585
00:28:43,520 --> 00:28:45,360
of focus. And this is the thing that I
586
00:28:45,360 --> 00:28:46,799
think most people fail to do. And I
587
00:28:46,799 --> 00:28:48,240
think the reason is because it takes
588
00:28:48,240 --> 00:28:50,559
multiple orders of thinking. What
589
00:28:50,559 --> 00:28:52,720
happens after that? What happens after
590
00:28:52,720 --> 00:28:54,720
that? What's stopping us from this? And
591
00:28:54,720 --> 00:28:55,919
we're going to do a ton of examples
592
00:28:55,919 --> 00:28:58,320
today, but I just I want to set this as
593
00:28:58,320 --> 00:29:00,399
the frame of this is what this is the
594
00:29:00,399 --> 00:29:02,080
highest leverage thing. This is the most
595
00:29:02,080 --> 00:29:03,600
important thing is that if you don't
596
00:29:03,600 --> 00:29:05,520
know what the one thing you should be
597
00:29:05,520 --> 00:29:08,159
working on is, it's your fault. That is
598
00:29:08,159 --> 00:29:10,799
the job of the entrepreneur. We're chief
599
00:29:10,799 --> 00:29:13,600
allocators of resources.
600
00:29:13,600 --> 00:29:15,600
And so businesses grow until they're
601
00:29:15,600 --> 00:29:17,760
constrained and then they stop. That's
602
00:29:17,760 --> 00:29:19,679
it. And I kind of see them that way.
603
00:29:19,679 --> 00:29:20,880
It's like you will just continue to grow
604
00:29:20,880 --> 00:29:21,919
until you hit a constraint and then you
605
00:29:21,919 --> 00:29:23,279
stop there and you stay there and you
606
00:29:23,279 --> 00:29:25,279
will stay there for months, weeks,
607
00:29:25,279 --> 00:29:27,919
years, decades until you figure out the
608
00:29:27,919 --> 00:29:30,399
constraint. All right? And so the thing
609
00:29:30,399 --> 00:29:31,840
that's stopping the growth is the
610
00:29:31,840 --> 00:29:34,720
constraint. Now, one of the famous
611
00:29:34,720 --> 00:29:36,080
probably heard this, which is a chain is
612
00:29:36,080 --> 00:29:38,240
only as strong as its weakest link. And
613
00:29:38,240 --> 00:29:40,399
so in a lot of ways, we've got kind of
614
00:29:40,399 --> 00:29:41,919
like our goals on one side and us on the
615
00:29:41,919 --> 00:29:43,440
other and we're pulling. We can only
616
00:29:43,440 --> 00:29:46,159
pull a goal that's as as heavy as our
617
00:29:46,159 --> 00:29:49,520
chain can hold, right? And so if you
618
00:29:49,520 --> 00:29:51,279
have, let's say, a weak link and you
619
00:29:51,279 --> 00:29:52,960
keep adding, you know, either adding
620
00:29:52,960 --> 00:29:54,640
links or strengthening the other links
621
00:29:54,640 --> 00:29:56,559
in the chain, it just changes nothing.
622
00:29:56,559 --> 00:29:58,399
And this is why if you've been stuck for
623
00:29:58,399 --> 00:30:00,159
a while, you're not growing as fast as
624
00:30:00,159 --> 00:30:03,039
you want, this may be the issue. Or my
625
00:30:03,039 --> 00:30:06,159
argument is it is the issue.
626
00:30:06,159 --> 00:30:08,240
So I'll give you a different example. So
627
00:30:08,240 --> 00:30:09,919
I obviously come from the fitness world.
628
00:30:09,919 --> 00:30:12,000
If you deadlift, which is just you just
629
00:30:12,000 --> 00:30:13,919
pick up a bar off the ground, right? So,
630
00:30:13,919 --> 00:30:15,760
if you pick a bar off the ground and
631
00:30:15,760 --> 00:30:17,919
let's say that your grip, right, can
632
00:30:17,919 --> 00:30:21,760
hold 500 lb, but your back can take 700
633
00:30:21,760 --> 00:30:25,279
lb. Okay, great. If I get my back from a
634
00:30:25,279 --> 00:30:27,840
700 lb back to an 800lb deadlift back,
635
00:30:27,840 --> 00:30:31,120
I'm still only pulling 500 lb, right?
636
00:30:31,120 --> 00:30:32,640
And so, we have to keep working on the
637
00:30:32,640 --> 00:30:34,720
grip. And until we work on the grip,
638
00:30:34,720 --> 00:30:36,080
nothing's going to change about our
639
00:30:36,080 --> 00:30:38,720
deadlift.
640
00:30:38,720 --> 00:30:41,520
And so working on the non-week link is a
641
00:30:41,520 --> 00:30:44,240
waste for immediate growth. Again, we
642
00:30:44,240 --> 00:30:47,360
have potential but not throughput
643
00:30:47,360 --> 00:30:50,399
which I just gave. Okay.
644
00:30:50,399 --> 00:30:52,880
Now that is fundamentally the constraint
645
00:30:52,880 --> 00:30:54,720
we seek to work on the constraint. So
646
00:30:54,720 --> 00:30:57,039
how does leverage play a role in this?
647
00:30:57,039 --> 00:30:58,399
So leverage is the difference between
648
00:30:58,399 --> 00:31:00,640
what you put in and what you get out.
649
00:31:00,640 --> 00:31:02,720
Right? And ideally we want high leverage
650
00:31:02,720 --> 00:31:05,520
so we get more for what we put in. Now,
651
00:31:05,520 --> 00:31:07,360
within the context of speed, because I
652
00:31:07,360 --> 00:31:09,200
don't know about you guys, but maybe uh
653
00:31:09,200 --> 00:31:11,120
you'd want to grow faster. I don't know
654
00:31:11,120 --> 00:31:13,120
about you, I like to grow faster, right?
655
00:31:13,120 --> 00:31:16,320
And so, if we want more output per unit
656
00:31:16,320 --> 00:31:17,919
of time, then it means we're exercising
657
00:31:17,919 --> 00:31:20,559
or using more leverage.
658
00:31:20,559 --> 00:31:22,960
And so, there are only two types of core
659
00:31:22,960 --> 00:31:24,480
leverage. So, I've shifted my my
660
00:31:24,480 --> 00:31:27,200
thinking process around this um and I
661
00:31:27,200 --> 00:31:29,200
think that it will it will help, which
662
00:31:29,200 --> 00:31:31,360
is there's really only two and then
663
00:31:31,360 --> 00:31:33,120
there's outputs of those things that can
664
00:31:33,120 --> 00:31:36,399
get reput. All right.
665
00:31:36,399 --> 00:31:38,880
So leverage itself exists on a
666
00:31:38,880 --> 00:31:40,640
continuum. It's not is there leverage or
667
00:31:40,640 --> 00:31:41,919
is there not leverage, but how much
668
00:31:41,919 --> 00:31:43,360
leverage is there? There's always a
669
00:31:43,360 --> 00:31:44,399
certain amount of leverage. It could be
670
00:31:44,399 --> 00:31:45,279
low leverage, it could be middle
671
00:31:45,279 --> 00:31:46,320
leverage, it could be high leverage,
672
00:31:46,320 --> 00:31:48,080
right? So it's not whether there's
673
00:31:48,080 --> 00:31:49,600
leverage, but how much leverage is
674
00:31:49,600 --> 00:31:53,279
there? And so the two are technology and
675
00:31:53,279 --> 00:31:55,279
skills. These are the two types of
676
00:31:55,279 --> 00:31:56,799
leverage that get you more for what you
677
00:31:56,799 --> 00:31:58,960
put in. And so at the most basic level,
678
00:31:58,960 --> 00:32:00,559
if I wanted to dig a hole, I could use
679
00:32:00,559 --> 00:32:04,080
my hands, right? Zero zero technology. I
680
00:32:04,080 --> 00:32:05,600
could use a shovel, which you know,
681
00:32:05,600 --> 00:32:06,960
ancient humans figured that one out. And
682
00:32:06,960 --> 00:32:08,559
so they got way more efficient using a
683
00:32:08,559 --> 00:32:10,720
shovel than using their hands. And then
684
00:32:10,720 --> 00:32:11,840
I could eventually, you know, more
685
00:32:11,840 --> 00:32:13,600
modern human, I could use a bulldozer,
686
00:32:13,600 --> 00:32:15,600
right? All of these are different
687
00:32:15,600 --> 00:32:16,799
technologies, different levels of
688
00:32:16,799 --> 00:32:18,399
technology, different levels of leverage
689
00:32:18,399 --> 00:32:21,760
that we get to increase our output. A
690
00:32:21,760 --> 00:32:23,279
different example, right? I could use
691
00:32:23,279 --> 00:32:24,720
pen and paper if I wanted to write
692
00:32:24,720 --> 00:32:27,120
stuff. I could use software to write it
693
00:32:27,120 --> 00:32:28,799
faster. And I could probably use AI to
694
00:32:28,799 --> 00:32:30,799
do it even faster, right? Different
695
00:32:30,799 --> 00:32:32,559
types of leverage all through
696
00:32:32,559 --> 00:32:33,919
technology.
697
00:32:33,919 --> 00:32:35,600
Now on the other side we've got skills.
698
00:32:35,600 --> 00:32:38,000
What what we learn to do rather than
699
00:32:38,000 --> 00:32:40,640
tools we use. So on the skills continuum
700
00:32:40,640 --> 00:32:42,240
I'll just give a basic one for a service
701
00:32:42,240 --> 00:32:43,600
business. If you've got a hundred leads
702
00:32:43,600 --> 00:32:45,519
and two sales people in one script you
703
00:32:45,519 --> 00:32:47,279
might have a 5x difference between the
704
00:32:47,279 --> 00:32:49,519
two sales people based on what based on
705
00:32:49,519 --> 00:32:52,720
skill. Same leads same script two
706
00:32:52,720 --> 00:32:54,320
people. One has five times the
707
00:32:54,320 --> 00:32:56,000
throughput. So they get more for what
708
00:32:56,000 --> 00:32:58,320
they put in skills
709
00:32:58,320 --> 00:33:00,640
right? And to use a media example, if I
710
00:33:00,640 --> 00:33:02,240
give two creators and I say, "Hey, go
711
00:33:02,240 --> 00:33:04,880
make me one short reel." I might have
712
00:33:04,880 --> 00:33:06,799
one guy who has literally a 100x the
713
00:33:06,799 --> 00:33:11,039
difference, high leverage on that skill.
714
00:33:11,039 --> 00:33:13,120
And so these are how you can know uh
715
00:33:13,120 --> 00:33:15,279
these are the two forms of leverage. And
716
00:33:15,279 --> 00:33:17,039
this is like I like to I always like to
717
00:33:17,039 --> 00:33:18,320
chunk things all the way up to say like
718
00:33:18,320 --> 00:33:19,760
how do how can I validate that this
719
00:33:19,760 --> 00:33:22,240
hypothesis is true. If you look at
720
00:33:22,240 --> 00:33:24,640
economics at the broadest level, what
721
00:33:24,640 --> 00:33:27,360
increases GDP per capita right within an
722
00:33:27,360 --> 00:33:28,559
economy? That's how we can measure
723
00:33:28,559 --> 00:33:30,399
output of a whole country. What are the
724
00:33:30,399 --> 00:33:31,600
two biggest variables that increase
725
00:33:31,600 --> 00:33:34,799
output output for a country? Technology
726
00:33:34,799 --> 00:33:39,200
and education, skills and tools.
727
00:33:39,200 --> 00:33:42,640
Okay. Now, when we use skills and tools,
728
00:33:42,640 --> 00:33:44,559
we then create other outputs. Money
729
00:33:44,559 --> 00:33:45,919
being one of them and being maybe the
730
00:33:45,919 --> 00:33:47,039
reason that some of you guys want to
731
00:33:47,039 --> 00:33:49,760
want to do it, right? Uh other people's
732
00:33:49,760 --> 00:33:51,919
skills and time. Okay. If we have that
733
00:33:51,919 --> 00:33:53,200
money, we can get other people to do
734
00:33:53,200 --> 00:33:54,720
stuff. If we have other skills, even
735
00:33:54,720 --> 00:33:55,679
without money, you can get other people
736
00:33:55,679 --> 00:33:57,519
to do stuff, right? You start to develop
737
00:33:57,519 --> 00:33:59,919
a brand or reputation that comes as a
738
00:33:59,919 --> 00:34:01,200
result of using tools and skills
739
00:34:01,200 --> 00:34:03,840
repeatedly. You get distribution. For
740
00:34:03,840 --> 00:34:05,679
example, 5,000 different stores carrier
741
00:34:05,679 --> 00:34:07,279
stuff because you use skills and tech in
742
00:34:07,279 --> 00:34:08,480
order to get them and build that
743
00:34:08,480 --> 00:34:10,720
distribution. But that becomes leverage
744
00:34:10,720 --> 00:34:13,359
for later. And then one of the more I
745
00:34:13,359 --> 00:34:14,960
would say tactical ones that that that
746
00:34:14,960 --> 00:34:16,000
we'll probably hit on a little bit
747
00:34:16,000 --> 00:34:18,800
harder today later is something I'll
748
00:34:18,800 --> 00:34:20,800
call single input multiple outputs. So
749
00:34:20,800 --> 00:34:22,240
this is one of my personal favorite ways
750
00:34:22,240 --> 00:34:24,079
of kind of creating leverage in in a
751
00:34:24,079 --> 00:34:26,079
business which is how can I double dip,
752
00:34:26,079 --> 00:34:27,200
how can I triple dip, how can I
753
00:34:27,200 --> 00:34:30,159
quintuple dip, right? And so an example
754
00:34:30,159 --> 00:34:32,000
of this is that we started running uh
755
00:34:32,000 --> 00:34:34,000
workshops for our advisory practice.
756
00:34:34,000 --> 00:34:36,560
Well the workshops is like a a quad dip
757
00:34:36,560 --> 00:34:38,079
for us. It's like we get deal flow. So,
758
00:34:38,079 --> 00:34:39,679
we get businesses that come in, we get
759
00:34:39,679 --> 00:34:42,240
cash flow, they're profitable, we get
760
00:34:42,240 --> 00:34:43,679
media because we capture a whole bunch
761
00:34:43,679 --> 00:34:45,359
of, you know, clips and all that stuff
762
00:34:45,359 --> 00:34:46,960
that further pushes through the
763
00:34:46,960 --> 00:34:48,480
flywheel. And then we also have all the
764
00:34:48,480 --> 00:34:49,839
data that we trained our AI on, which
765
00:34:49,839 --> 00:34:50,960
some of you guys have already tried.
766
00:34:50,960 --> 00:34:52,560
Pretty sweet, right? But we were only
767
00:34:52,560 --> 00:34:54,879
able to do that because that thing like
768
00:34:54,879 --> 00:34:56,560
imagine if I had to do one specific
769
00:34:56,560 --> 00:34:58,400
thing to collect media, another thing to
770
00:34:58,400 --> 00:35:00,000
collect data, another thing to create
771
00:35:00,000 --> 00:35:01,280
cash flow, another thing to create deal
772
00:35:01,280 --> 00:35:03,200
flow. I would have way less leverage.
773
00:35:03,200 --> 00:35:04,960
And so, always thinking like what's the
774
00:35:04,960 --> 00:35:07,040
sawdust? What other outputs can we can
775
00:35:07,040 --> 00:35:09,760
we extract from the ex existing behavior
776
00:35:09,760 --> 00:35:12,400
set or activity typically benefits big
777
00:35:12,400 --> 00:35:14,880
time. All right. And so once we have all
778
00:35:14,880 --> 00:35:17,359
these new leveraged outputs, we put them
779
00:35:17,359 --> 00:35:19,760
back in and try to attack the constraint
780
00:35:19,760 --> 00:35:21,359
again. And so if our first level of
781
00:35:21,359 --> 00:35:22,560
attacking the constraint is we have
782
00:35:22,560 --> 00:35:25,200
skills and tools, great. Then we get
783
00:35:25,200 --> 00:35:26,880
money, other people's skills and time,
784
00:35:26,880 --> 00:35:28,880
brand distribution, uh, and then
785
00:35:28,880 --> 00:35:30,720
basically how can we slice it, slice and
786
00:35:30,720 --> 00:35:32,480
dice it multiple times. We take this
787
00:35:32,480 --> 00:35:34,400
again and then reattack the constraint
788
00:35:34,400 --> 00:35:36,960
with even more leverage.
789
00:35:36,960 --> 00:35:39,359
And so fundamentally the constraint is
790
00:35:39,359 --> 00:35:41,920
the priority. Like right now our whole
791
00:35:41,920 --> 00:35:43,440
job is chief allocator of resources.
792
00:35:43,440 --> 00:35:45,280
That's what we are as the entrepreneur.
793
00:35:45,280 --> 00:35:47,440
And so priority unfortunately like in
794
00:35:47,440 --> 00:35:49,440
the modern era became a a term that
795
00:35:49,440 --> 00:35:52,240
people use and have priorities plural
796
00:35:52,240 --> 00:35:53,839
right but if you look at the Latin it
797
00:35:53,839 --> 00:35:55,440
comes from I think a priority which
798
00:35:55,440 --> 00:35:58,640
means first. All right. Or before which
799
00:35:58,640 --> 00:36:00,400
means you do this first. means when you
800
00:36:00,400 --> 00:36:01,920
wake up in the morning, this is what you
801
00:36:01,920 --> 00:36:03,920
attack because everything that's not
802
00:36:03,920 --> 00:36:09,079
this is not growing the business.
803
00:36:09,119 --> 00:36:11,359
And so, and this is a this is a harder
804
00:36:11,359 --> 00:36:12,880
pill to swallow, but if you have more
805
00:36:12,880 --> 00:36:16,400
than one, you are the problem. And so,
806
00:36:16,400 --> 00:36:18,480
it's like, how can we expect our teams
807
00:36:18,480 --> 00:36:21,280
to prioritize their time when you
808
00:36:21,280 --> 00:36:25,440
haven't prioritized theirs,
809
00:36:25,440 --> 00:36:27,440
right? Like, we're the ones who are
810
00:36:27,440 --> 00:36:29,760
responsible for this. And so if like you
811
00:36:29,760 --> 00:36:31,760
can't decide what your priority is, like
812
00:36:31,760 --> 00:36:34,640
it's your fault.
813
00:36:34,640 --> 00:36:36,640
And so this is why we are the chief
814
00:36:36,640 --> 00:36:38,400
allocator of resources. We are the chief
815
00:36:38,400 --> 00:36:41,440
prioritization officer. And so I I bring
816
00:36:41,440 --> 00:36:43,200
this up because there's a lot of people
817
00:36:43,200 --> 00:36:44,960
who, you know, say they throw this word
818
00:36:44,960 --> 00:36:47,599
strategy around and I think strategy has
819
00:36:47,599 --> 00:36:49,760
become this big amorphous thing. But
820
00:36:49,760 --> 00:36:51,680
strategy is just allocating limited
821
00:36:51,680 --> 00:36:53,119
resources. All of us have limited
822
00:36:53,119 --> 00:36:55,119
resources, time, money, etc., right?
823
00:36:55,119 --> 00:36:58,640
Against unlimited potential uses. And so
824
00:36:58,640 --> 00:37:00,079
the simple way of saying this is it's
825
00:37:00,079 --> 00:37:01,599
prioritizing. That's what strategy is.
826
00:37:01,599 --> 00:37:02,960
It's all it is. It's just prioritizing.
827
00:37:02,960 --> 00:37:04,000
What are we going to what are we going
828
00:37:04,000 --> 00:37:05,680
to attack with the limited stuff we've
829
00:37:05,680 --> 00:37:06,880
got? We got a million things we could
830
00:37:06,880 --> 00:37:09,119
do. What's the one we are going to do,
831
00:37:09,119 --> 00:37:12,160
right? And so the best strategy is that
832
00:37:12,160 --> 00:37:15,280
you use the limited resources you have
833
00:37:15,280 --> 00:37:16,960
to get the greatest increase in
834
00:37:16,960 --> 00:37:18,960
throughput. That is the best strategy
835
00:37:18,960 --> 00:37:20,640
objectively. The question is you won't
836
00:37:20,640 --> 00:37:21,920
be able to know which one it is until
837
00:37:21,920 --> 00:37:24,000
after, right? That's the tough part. But
838
00:37:24,000 --> 00:37:25,760
objectively that is the best strategy.
839
00:37:25,760 --> 00:37:27,359
the thing that gets you the most bang
840
00:37:27,359 --> 00:37:30,480
for your buck. A good strategy would be
841
00:37:30,480 --> 00:37:32,320
that you re you allocate the resources
842
00:37:32,320 --> 00:37:35,119
to get an improvement. Great. We grew.
843
00:37:35,119 --> 00:37:37,200
Did we grow as much as you know God
844
00:37:37,200 --> 00:37:39,599
telling us what to do? Probably not. But
845
00:37:39,599 --> 00:37:42,000
did we grow more than we were before?
846
00:37:42,000 --> 00:37:44,000
Yeah, we allocated resources. Well, good
847
00:37:44,000 --> 00:37:46,480
strategy. What's a poor strategy? And
848
00:37:46,480 --> 00:37:47,839
there's two levels of poor strategy. It
849
00:37:47,839 --> 00:37:49,599
go it goes there's two on the negative
850
00:37:49,599 --> 00:37:52,320
side, too. All right. So if you allocate
851
00:37:52,320 --> 00:37:55,440
resources to no improvement,
852
00:37:55,440 --> 00:37:57,839
for example, if you are stagnating right
853
00:37:57,839 --> 00:37:59,200
now, then it means you're actually
854
00:37:59,200 --> 00:38:01,520
wasting resources. It means you're using
855
00:38:01,520 --> 00:38:03,440
the stuff you got and you're not seeing
856
00:38:03,440 --> 00:38:05,760
any increase. So you have one level of
857
00:38:05,760 --> 00:38:07,440
waste. The resources you have are
858
00:38:07,440 --> 00:38:09,680
getting wasted.
859
00:38:09,680 --> 00:38:11,280
Then there's two levels of w I'll give
860
00:38:11,280 --> 00:38:14,240
you an example here. So um buddy of mine
861
00:38:14,240 --> 00:38:16,160
uh owns a big business and he was really
862
00:38:16,160 --> 00:38:17,760
confident that his marketing was like
863
00:38:17,760 --> 00:38:19,920
not good. uh and he had a CMO in there
864
00:38:19,920 --> 00:38:21,119
or whatever and he said, "Hey man, I
865
00:38:21,119 --> 00:38:22,160
don't think these ads are good. I don't
866
00:38:22,160 --> 00:38:23,119
think they're working." And they were
867
00:38:23,119 --> 00:38:24,400
like, "No, like we're really confident
868
00:38:24,400 --> 00:38:26,240
that this stuff's like making a huge
869
00:38:26,240 --> 00:38:28,320
impact." And so it took them six months
870
00:38:28,320 --> 00:38:29,680
and he finally was like, "Just cut the
871
00:38:29,680 --> 00:38:32,720
damn ads." So they cut the ads and sales
872
00:38:32,720 --> 00:38:34,960
remained the same. So they were
873
00:38:34,960 --> 00:38:37,280
basically burning $2 million a month in
874
00:38:37,280 --> 00:38:39,280
this specific campaign that did
875
00:38:39,280 --> 00:38:41,359
literally nothing. And so it was $12
876
00:38:41,359 --> 00:38:42,800
million that got flushed down the
877
00:38:42,800 --> 00:38:45,040
toilet. Now, it didn't hurt the
878
00:38:45,040 --> 00:38:46,480
business, but I mean, they wasted
879
00:38:46,480 --> 00:38:48,880
resources, which then kind of leads to
880
00:38:48,880 --> 00:38:51,040
the next one, which is you can also
881
00:38:51,040 --> 00:38:52,960
double waste, which is like you could
882
00:38:52,960 --> 00:38:55,440
spend $2 million a month on stuff that
883
00:38:55,440 --> 00:38:56,960
not only doesn't make the business
884
00:38:56,960 --> 00:38:59,359
better, but actively makes it worse. So,
885
00:38:59,359 --> 00:39:01,040
not only do you waste the resources, you
886
00:39:01,040 --> 00:39:03,839
actually decrease throughput.
887
00:39:03,839 --> 00:39:05,920
And I bring these up because I like to I
888
00:39:05,920 --> 00:39:08,320
just want to be real. Like if if the
889
00:39:08,320 --> 00:39:09,760
businesses are growing as fast as you
890
00:39:09,760 --> 00:39:11,839
want, you might have a strategy issue,
891
00:39:11,839 --> 00:39:13,280
meaning you're not allocating resources
892
00:39:13,280 --> 00:39:14,960
to the greatest potential improvement.
893
00:39:14,960 --> 00:39:16,400
If you're stagnating right now, it means
894
00:39:16,400 --> 00:39:17,599
that there's somewhere else you should
895
00:39:17,599 --> 00:39:19,520
be allocating your resources to get a
896
00:39:19,520 --> 00:39:22,760
better return.
897
00:39:24,079 --> 00:39:27,040
All right, I'll tell I'll give you a fun
898
00:39:27,040 --> 00:39:28,480
example of a double way so it's not so
899
00:39:28,480 --> 00:39:29,839
you don't feel like uh I'm I'm beating
900
00:39:29,839 --> 00:39:33,359
on you. So, my gym got to full capacity
901
00:39:33,359 --> 00:39:34,880
um you know, different different times
902
00:39:34,880 --> 00:39:36,880
in my career, but when I just had one
903
00:39:36,880 --> 00:39:39,440
gym, um everyone was loving it. I had
904
00:39:39,440 --> 00:39:40,960
these two kind of parallel sessions that
905
00:39:40,960 --> 00:39:43,119
worked and like my gym was packed. And
906
00:39:43,119 --> 00:39:45,040
so, I couldn't fit any more people in my
907
00:39:45,040 --> 00:39:47,280
gym and but I wasn't making as much
908
00:39:47,280 --> 00:39:48,640
money as I wanted. And so, what I did
909
00:39:48,640 --> 00:39:51,119
was I attacked the incorrect constraint.
910
00:39:51,119 --> 00:39:52,560
So, what I did is I took this really
911
00:39:52,560 --> 00:39:54,320
working product that everyone loved,
912
00:39:54,320 --> 00:39:55,839
which is these 45minute sessions. I had
913
00:39:55,839 --> 00:39:56,960
these strength sessions and I had these
914
00:39:56,960 --> 00:39:58,560
cardio sessions. And so I had them
915
00:39:58,560 --> 00:40:00,480
running in parallel and because I
916
00:40:00,480 --> 00:40:02,320
couldn't fit as many people in, I
917
00:40:02,320 --> 00:40:04,240
decided to one combine them and then two
918
00:40:04,240 --> 00:40:06,560
make them 30 minute sessions. By doing
919
00:40:06,560 --> 00:40:08,880
that I increased my capacity but no one
920
00:40:08,880 --> 00:40:10,320
liked the product and I ended up having
921
00:40:10,320 --> 00:40:12,720
this massive spike in churn. Whereas the
922
00:40:12,720 --> 00:40:14,800
intelligent thing would have been oh
923
00:40:14,800 --> 00:40:16,160
everyone loves it. You're at full
924
00:40:16,160 --> 00:40:19,200
capacity raise your prices and then I
925
00:40:19,200 --> 00:40:20,320
would have been able to have an amazing
926
00:40:20,320 --> 00:40:22,000
product and had more profit. It would
927
00:40:22,000 --> 00:40:23,440
have been such a simpler solution than
928
00:40:23,440 --> 00:40:25,119
trying to reorganize my whole thing. But
929
00:40:25,119 --> 00:40:26,240
I was young and I didn't know any
930
00:40:26,240 --> 00:40:28,560
better. And so I I used all these
931
00:40:28,560 --> 00:40:30,960
resources to remarket it, tell you know,
932
00:40:30,960 --> 00:40:32,560
communicate it, retrain my staff on this
933
00:40:32,560 --> 00:40:34,240
new way of doing things. And not only
934
00:40:34,240 --> 00:40:36,480
did I waste all that effort, I also hurt
935
00:40:36,480 --> 00:40:40,560
my business. Bad strategy.
936
00:40:40,560 --> 00:40:42,640
I also, just so it's like I've done this
937
00:40:42,640 --> 00:40:45,119
more than once. Um, in gym launch, one
938
00:40:45,119 --> 00:40:46,640
of the biggest mistakes I made, I made a
939
00:40:46,640 --> 00:40:48,000
couple big ones, but this is one of the
940
00:40:48,000 --> 00:40:51,280
biggest ones. Um I was it was the first
941
00:40:51,280 --> 00:40:52,720
and last time that I look in
942
00:40:52,720 --> 00:40:54,240
competitors, but there was somebody else
943
00:40:54,240 --> 00:40:56,400
in the marketplace that um basically
944
00:40:56,400 --> 00:40:58,000
advert you know they they took a bunch
945
00:40:58,000 --> 00:41:00,560
of my my top you know customers and they
946
00:41:00,560 --> 00:41:02,000
tried to partner with them to basically
947
00:41:02,000 --> 00:41:03,599
just make a Mickey Mouse copycat version
948
00:41:03,599 --> 00:41:06,160
of my stuff. And so I then got really
949
00:41:06,160 --> 00:41:07,760
and they were like we're going to give
950
00:41:07,760 --> 00:41:09,760
you know one-on-one help and I didn't do
951
00:41:09,760 --> 00:41:13,359
one-on-one um at the time. And so they
952
00:41:13,359 --> 00:41:15,200
they make this offer that was less than
953
00:41:15,200 --> 00:41:18,240
mine and had one-on-one support. And so
954
00:41:18,240 --> 00:41:19,920
I go through this whole rigomeroll and
955
00:41:19,920 --> 00:41:21,760
then I do this launch to my existing
956
00:41:21,760 --> 00:41:23,200
customer base and I say, "Hey, here's
957
00:41:23,200 --> 00:41:25,119
this amazing thing. We're just going to
958
00:41:25,119 --> 00:41:28,720
charge all of you less money by 25%. And
959
00:41:28,720 --> 00:41:30,400
give you more and you don't have to do
960
00:41:30,400 --> 00:41:32,240
anything." And I want to tell you a
961
00:41:32,240 --> 00:41:33,280
couple really interesting things that
962
00:41:33,280 --> 00:41:35,760
happened from that. Number one, many
963
00:41:35,760 --> 00:41:37,520
people complained. So think about how
964
00:41:37,520 --> 00:41:40,400
crazy this is. I lowered the price and
965
00:41:40,400 --> 00:41:42,400
added services and people complained
966
00:41:42,400 --> 00:41:44,160
because they're like, I've been paying
967
00:41:44,160 --> 00:41:46,800
this whole time and you didn't give me
968
00:41:46,800 --> 00:41:48,319
this
969
00:41:48,319 --> 00:41:50,400
like and it was a great lesson for me to
970
00:41:50,400 --> 00:41:51,839
tell you that people just hate change no
971
00:41:51,839 --> 00:41:55,200
matter what it is. So, thing one, the
972
00:41:55,200 --> 00:41:57,040
second thing um that happened is that
973
00:41:57,040 --> 00:41:59,760
when you cut 25% of topline and add
974
00:41:59,760 --> 00:42:01,920
costs, guess what that does to your
975
00:42:01,920 --> 00:42:05,040
profit? It kills your profit. And so I
976
00:42:05,040 --> 00:42:07,040
lost about $5 million a year in profit
977
00:42:07,040 --> 00:42:08,560
from that one move, which we never
978
00:42:08,560 --> 00:42:10,880
recovered. And considering we sold the
979
00:42:10,880 --> 00:42:13,200
business, I guess 24-ish months later,
980
00:42:13,200 --> 00:42:16,400
it probably cost me realistically $40 to
981
00:42:16,400 --> 00:42:19,200
$50 million. Like a real true like not
982
00:42:19,200 --> 00:42:21,760
like oh hypothetical like I I did sell
983
00:42:21,760 --> 00:42:23,440
the company and it was based on profit
984
00:42:23,440 --> 00:42:25,599
and I probably lost another four 40 to
985
00:42:25,599 --> 00:42:27,760
50. That's not an extrapolation of of
986
00:42:27,760 --> 00:42:29,839
the the multiple, but I'm just saying
987
00:42:29,839 --> 00:42:32,480
round numbers. So, when I say this, I'm
988
00:42:32,480 --> 00:42:33,680
not trying to be heavy-handed because I
989
00:42:33,680 --> 00:42:34,880
want you to feel bad. I'm saying because
990
00:42:34,880 --> 00:42:36,640
I've done this and made horrible
991
00:42:36,640 --> 00:42:38,160
mistakes before and ideally would like
992
00:42:38,160 --> 00:42:42,160
you to avoid them. So, as we as we we
993
00:42:42,160 --> 00:42:44,319
kind of wrap or get close to wrapping
994
00:42:44,319 --> 00:42:46,240
this particular part one for framing
995
00:42:46,240 --> 00:42:48,800
today, um, one of the things that I
996
00:42:48,800 --> 00:42:50,240
think is really important is to
997
00:42:50,240 --> 00:42:52,000
understand the paradox of solutions,
998
00:42:52,000 --> 00:42:54,319
meaning that there are multiple paths
999
00:42:54,319 --> 00:42:57,200
that can lead you up the mountain. So,
1000
00:42:57,200 --> 00:43:01,000
let me explain what I mean.
1001
00:43:07,839 --> 00:43:11,400
So, let's say
1002
00:43:12,640 --> 00:43:14,319
I have a leads issue and we're going to
1003
00:43:14,319 --> 00:43:16,800
cover this really heavy back half of the
1004
00:43:16,800 --> 00:43:19,119
day. Let's say I've got a really heavy
1005
00:43:19,119 --> 00:43:20,960
leads problem, right? And we're going
1006
00:43:20,960 --> 00:43:22,480
from clouds all the way to dirt, but I
1007
00:43:22,480 --> 00:43:23,680
have to frame it this way so that I can
1008
00:43:23,680 --> 00:43:26,079
bring everyone else along. Okay, so I
1009
00:43:26,079 --> 00:43:29,480
need more leads.
1010
00:43:30,319 --> 00:43:32,880
I could
1011
00:43:32,880 --> 00:43:34,880
increase my ad spend, right? That could
1012
00:43:34,880 --> 00:43:36,480
be one thing that I do. I increase my ad
1013
00:43:36,480 --> 00:43:38,720
spend. I could just make more ads
1014
00:43:38,720 --> 00:43:40,319
overall, more creative or make better
1015
00:43:40,319 --> 00:43:42,319
creative. That would do it. I could also
1016
00:43:42,319 --> 00:43:44,800
do some conversion rate optimization uh
1017
00:43:44,800 --> 00:43:47,680
on my pages. I could also improve my
1018
00:43:47,680 --> 00:43:50,079
lead magnet. Right? All of these things
1019
00:43:50,079 --> 00:43:51,520
would be things that I could do. And
1020
00:43:51,520 --> 00:43:52,800
this is like there's a hundred things I
1021
00:43:52,800 --> 00:43:54,640
could do, but that's five or four,
1022
00:43:54,640 --> 00:43:57,520
right? And so consider each of these as
1023
00:43:57,520 --> 00:43:59,440
these paths
1024
00:43:59,440 --> 00:44:03,440
up the mountain, right?
1025
00:44:03,440 --> 00:44:04,880
All of these are different paths up the
1026
00:44:04,880 --> 00:44:07,520
mountain. And so what's important to
1027
00:44:07,520 --> 00:44:11,119
realize is that it the difficulty is
1028
00:44:11,119 --> 00:44:13,599
properly identifying the constraint.
1029
00:44:13,599 --> 00:44:15,200
Once you identify the constraint
1030
00:44:15,200 --> 00:44:17,119
properly, you absolutely should hit it
1031
00:44:17,119 --> 00:44:19,359
with an atomic bomb to make sure that
1032
00:44:19,359 --> 00:44:22,400
you abs you destroy it, right? And so if
1033
00:44:22,400 --> 00:44:24,319
that was my issue, I could just do this,
1034
00:44:24,319 --> 00:44:26,560
but maybe I'll do all four, right? And
1035
00:44:26,560 --> 00:44:29,520
so this is the strategic priority. This
1036
00:44:29,520 --> 00:44:31,760
is the constraint. And so I bring this
1037
00:44:31,760 --> 00:44:32,960
up because some of you guys are going to
1038
00:44:32,960 --> 00:44:34,720
be like, well, which should I do? I'm
1039
00:44:34,720 --> 00:44:36,240
like, do them all or do the one that you
1040
00:44:36,240 --> 00:44:37,839
think you're most likely to succeed with
1041
00:44:37,839 --> 00:44:38,960
first and then you can start working
1042
00:44:38,960 --> 00:44:40,400
your way down. And if it resolves the
1043
00:44:40,400 --> 00:44:44,800
constraint, awesome. Rock and roll.
1044
00:44:44,800 --> 00:44:46,800
And so solving constraints happens in
1045
00:44:46,800 --> 00:44:48,560
unlimited ways. There's many flavors of
1046
00:44:48,560 --> 00:44:50,319
business. multiple ways to solve a
1047
00:44:50,319 --> 00:44:51,440
constraint, but identifying the
1048
00:44:51,440 --> 00:44:54,160
constraint is key. Going up the mountain
1049
00:44:54,160 --> 00:44:56,400
uh is singular. So solving the
1050
00:44:56,400 --> 00:44:58,000
constraint, getting to this altitude is
1051
00:44:58,000 --> 00:44:59,920
a singular goal. The paths can be
1052
00:44:59,920 --> 00:45:01,599
varied.
1053
00:45:01,599 --> 00:45:03,680
And so, right, your C's too high. You
1054
00:45:03,680 --> 00:45:05,440
can change your offer ad sales motion.
1055
00:45:05,440 --> 00:45:07,920
You can fix the problem. All right. Then
1056
00:45:07,920 --> 00:45:11,040
you need the next one. Right? And I I'll
1057
00:45:11,040 --> 00:45:12,880
talk about this more later, but the way
1058
00:45:12,880 --> 00:45:14,160
that you're like, okay, well, if I'm
1059
00:45:14,160 --> 00:45:16,160
going to talk to you, Alex, you tend to
1060
00:45:16,160 --> 00:45:18,079
give a specific directive. not only say
1061
00:45:18,079 --> 00:45:19,680
okay this is the problem how are we
1062
00:45:19,680 --> 00:45:22,400
going to fix it so I operate from the
1063
00:45:22,400 --> 00:45:23,920
position of what are the resources that
1064
00:45:23,920 --> 00:45:25,359
you have available to you so what are
1065
00:45:25,359 --> 00:45:28,400
the skills what are the um what are the
1066
00:45:28,400 --> 00:45:29,680
what are the assets that you have
1067
00:45:29,680 --> 00:45:31,920
currently and then I'm going to look at
1068
00:45:31,920 --> 00:45:33,440
all the different potentialities and say
1069
00:45:33,440 --> 00:45:35,119
okay well this one this person has more
1070
00:45:35,119 --> 00:45:36,720
experience with and so I think this is
1071
00:45:36,720 --> 00:45:38,800
the highest likelihood path for them if
1072
00:45:38,800 --> 00:45:40,240
this guy knows how to climb and this guy
1073
00:45:40,240 --> 00:45:41,520
doesn't well I'm not gonna have the guy
1074
00:45:41,520 --> 00:45:42,640
who doesn't know how to climb go on a
1075
00:45:42,640 --> 00:45:44,480
path that has some jagged rocks that
1076
00:45:44,480 --> 00:45:46,319
he'll have to climb up right so the path
1077
00:45:46,319 --> 00:45:47,920
could get them there, but which one's
1078
00:45:47,920 --> 00:45:49,680
the highest likelihood bet? And so this
1079
00:45:49,680 --> 00:45:50,960
is how I think through it. And with the
1080
00:45:50,960 --> 00:45:53,680
more skills you have, the more all of
1081
00:45:53,680 --> 00:45:55,119
these paths will work. Because if you're
1082
00:45:55,119 --> 00:45:57,760
a master climber and a master hiker and
1083
00:45:57,760 --> 00:46:00,160
an endurance runner, then you're like,
1084
00:46:00,160 --> 00:46:02,000
I'm pretty much good on all these paths.
1085
00:46:02,000 --> 00:46:03,280
Great. Then it means you have more ways
1086
00:46:03,280 --> 00:46:05,040
to win.
1087
00:46:05,040 --> 00:46:07,599
And so I want to bring this up though
1088
00:46:07,599 --> 00:46:09,119
from a from a different perspective when
1089
00:46:09,119 --> 00:46:11,040
it comes to well, how big of a peak can
1090
00:46:11,040 --> 00:46:13,520
I get up to with my existing skill set?
1091
00:46:13,520 --> 00:46:15,280
And so
1092
00:46:15,280 --> 00:46:16,720
one of the number one things that comes
1093
00:46:16,720 --> 00:46:18,800
up when I have like chromosy hotline or
1094
00:46:18,800 --> 00:46:20,240
I meet people in person at the workshops
1095
00:46:20,240 --> 00:46:23,119
and whatnot is like I don't know if my
1096
00:46:23,119 --> 00:46:26,160
vehicle the business that I'm in is is
1097
00:46:26,160 --> 00:46:27,760
sufficient for the goal that I'm trying
1098
00:46:27,760 --> 00:46:29,920
to accomplish, right? And so let's say
1099
00:46:29,920 --> 00:46:31,119
that you're like I want to get to a
1100
00:46:31,119 --> 00:46:33,280
million dollars a year hypothetically.
1101
00:46:33,280 --> 00:46:34,800
There's basically unlimited paths to
1102
00:46:34,800 --> 00:46:36,480
getting to a million dollars a year. And
1103
00:46:36,480 --> 00:46:39,040
so I'll give you a an easy visual for
1104
00:46:39,040 --> 00:46:40,990
this. So,
1105
00:46:40,990 --> 00:46:43,680
[Applause]
1106
00:46:43,680 --> 00:46:46,480
if you want to get up a foothill, right,
1107
00:46:46,480 --> 00:46:48,880
there's literally unlimited ways that
1108
00:46:48,880 --> 00:46:50,960
you can get up a foothill. If you want
1109
00:46:50,960 --> 00:46:52,880
to get up a larger hill, there's going
1110
00:46:52,880 --> 00:46:54,960
to be depending on how jagged the, you
1111
00:46:54,960 --> 00:46:56,000
know, the hill is, right? There's going
1112
00:46:56,000 --> 00:46:58,240
to be fewer ways potentially. If you
1113
00:46:58,240 --> 00:47:01,359
want to get up to Mount Everest,
1114
00:47:01,359 --> 00:47:02,319
I don't know if I don't know if that's
1115
00:47:02,319 --> 00:47:03,599
what Everest looks like. I'm going to be
1116
00:47:03,599 --> 00:47:06,400
real. Um, but there's probably I don't
1117
00:47:06,400 --> 00:47:07,680
know about Everest, but I'm sure there's
1118
00:47:07,680 --> 00:47:09,119
probably one or two paths that actually
1119
00:47:09,119 --> 00:47:12,079
get you to the summit, right? And so if
1120
00:47:12,079 --> 00:47:13,839
you have a $1 million year goal, then
1121
00:47:13,839 --> 00:47:15,520
you can get there whatever way you want.
1122
00:47:15,520 --> 00:47:17,359
$10 million still pretty unlimited.
1123
00:47:17,359 --> 00:47:18,960
Almost every business can get to $10
1124
00:47:18,960 --> 00:47:22,079
million a year. $100 million.
1125
00:47:22,079 --> 00:47:25,520
If it's enterprise value, yes, slightly
1126
00:47:25,520 --> 00:47:27,920
less so, but still like there's usually
1127
00:47:27,920 --> 00:47:29,359
an adjacent version of your business.
1128
00:47:29,359 --> 00:47:30,560
I'll give you an example. So if you're
1129
00:47:30,560 --> 00:47:31,920
if you're a brickandmortar store, you're
1130
00:47:31,920 --> 00:47:33,119
like, I can't get to $100 million
1131
00:47:33,119 --> 00:47:34,160
business. It's like, yeah, with one
1132
00:47:34,160 --> 00:47:36,640
store, no, but with 20 it could, right?
1133
00:47:36,640 --> 00:47:38,160
And so that's the idea is like it's
1134
00:47:38,160 --> 00:47:39,839
probably just like a tiny permutation
1135
00:47:39,839 --> 00:47:41,200
from the existing business could get you
1136
00:47:41,200 --> 00:47:42,800
there.
1137
00:47:42,800 --> 00:47:45,760
If your goal is to uh is to get to a a
1138
00:47:45,760 --> 00:47:48,480
trillion dollar company, right? Well,
1139
00:47:48,480 --> 00:47:49,839
then you pretty much exclude if you want
1140
00:47:49,839 --> 00:47:51,599
to get to Everest, you pretty much would
1141
00:47:51,599 --> 00:47:53,359
have to just do a global technology
1142
00:47:53,359 --> 00:47:55,280
product. There's just like there's
1143
00:47:55,280 --> 00:47:57,760
really no other way. And so depending on
1144
00:47:57,760 --> 00:48:00,160
the size of your goal, uh the path can
1145
00:48:00,160 --> 00:48:03,040
vary, but most people's goals are not a
1146
00:48:03,040 --> 00:48:04,720
trillion dollars. Most people goals are
1147
00:48:04,720 --> 00:48:06,319
like, I would like to have enough to be
1148
00:48:06,319 --> 00:48:07,520
free, enough to have the time that I
1149
00:48:07,520 --> 00:48:11,280
want, etc. Right? And so, um, I bring
1150
00:48:11,280 --> 00:48:12,560
this up because you've got your hill,
1151
00:48:12,560 --> 00:48:13,520
you've got your mountain, and you've got
1152
00:48:13,520 --> 00:48:16,480
Mount Everest. And, uh, unless your goal
1153
00:48:16,480 --> 00:48:18,720
is the trillion, then almost all of
1154
00:48:18,720 --> 00:48:19,760
these things that I'm about to share
1155
00:48:19,760 --> 00:48:21,680
with you will work in your existing
1156
00:48:21,680 --> 00:48:24,319
vehicle. Because so many um business
1157
00:48:24,319 --> 00:48:26,800
owners have this idea that they're like
1158
00:48:26,800 --> 00:48:28,960
you waste years on the existing business
1159
00:48:28,960 --> 00:48:30,160
you're in because you just don't commit
1160
00:48:30,160 --> 00:48:31,599
to it. It's like you're kind of like
1161
00:48:31,599 --> 00:48:33,440
have it as a side chick, right? Where
1162
00:48:33,440 --> 00:48:34,880
you're like you're like kind of dating.
1163
00:48:34,880 --> 00:48:36,640
You're half in half out rather than just
1164
00:48:36,640 --> 00:48:38,079
going all in. And if you just went all
1165
00:48:38,079 --> 00:48:39,280
in, you'd get to where you want to go
1166
00:48:39,280 --> 00:48:41,440
way faster. But you spend years not
1167
00:48:41,440 --> 00:48:42,960
going all in. And if you just gone all
1168
00:48:42,960 --> 00:48:47,160
in from day one, you'd already be there.
1169
00:48:47,599 --> 00:48:50,240
So if the constraint is the first thing
1170
00:48:50,240 --> 00:48:52,160
that we're trying to to figure out,
1171
00:48:52,160 --> 00:48:55,359
right? Thing one. Thing two is we want
1172
00:48:55,359 --> 00:48:56,720
to apply leverage to the constraint. So
1173
00:48:56,720 --> 00:48:58,319
we want to get more for what we put in
1174
00:48:58,319 --> 00:48:59,920
so that we can move through it. We can
1175
00:48:59,920 --> 00:49:01,839
break through that constraint faster.
1176
00:49:01,839 --> 00:49:03,040
The third thing that we're looking to
1177
00:49:03,040 --> 00:49:04,720
accomplish is compounding. We want a
1178
00:49:04,720 --> 00:49:08,079
business that grows on its own by just
1179
00:49:08,079 --> 00:49:09,280
continuing to do the same level of
1180
00:49:09,280 --> 00:49:10,880
activity. So fundamentally that is what
1181
00:49:10,880 --> 00:49:12,240
compounding is. You have the same input
1182
00:49:12,240 --> 00:49:15,200
and then increasing outputs over time.
1183
00:49:15,200 --> 00:49:18,240
same input increasing outputs.
1184
00:49:18,240 --> 00:49:19,920
Leverage is one time you get more for
1185
00:49:19,920 --> 00:49:22,160
what you put in. Compounding itself is a
1186
00:49:22,160 --> 00:49:24,640
form of leverage, right? But also in
1187
00:49:24,640 --> 00:49:27,119
that if I do one push-up and then I get
1188
00:49:27,119 --> 00:49:28,559
two push-ups back and I do one push-up
1189
00:49:28,559 --> 00:49:29,920
and I get three push-ups back, I do one
1190
00:49:29,920 --> 00:49:32,000
push-up and I get six push-ups back.
1191
00:49:32,000 --> 00:49:33,680
That is the compounding happening,
1192
00:49:33,680 --> 00:49:35,599
right? And so almost all businesses
1193
00:49:35,599 --> 00:49:37,280
should take a compounding vehicle of
1194
00:49:37,280 --> 00:49:39,119
some kind. So think of these as
1195
00:49:39,119 --> 00:49:42,240
flywheels or virtuous cycles. So an
1196
00:49:42,240 --> 00:49:45,040
example for real world, your reputation
1197
00:49:45,040 --> 00:49:47,280
is a flywheel. The more you do, the
1198
00:49:47,280 --> 00:49:48,559
better you get. The better you get, the
1199
00:49:48,559 --> 00:49:49,599
more people talk, the more people talk,
1200
00:49:49,599 --> 00:49:50,640
the better you do, the better you get,
1201
00:49:50,640 --> 00:49:52,079
the more people do. And it goes around
1202
00:49:52,079 --> 00:49:54,480
and around and around. Structural
1203
00:49:54,480 --> 00:49:56,480
virality is an example of a compounding
1204
00:49:56,480 --> 00:49:58,559
vehicle. So school, the whole platform
1205
00:49:58,559 --> 00:50:00,800
is built on you start you start a
1206
00:50:00,800 --> 00:50:02,400
community, you invite 200 people. Of
1207
00:50:02,400 --> 00:50:04,319
those 200 people, they invite they, you
1208
00:50:04,319 --> 00:50:05,280
know, one or two or three of those
1209
00:50:05,280 --> 00:50:06,559
people is going to start their own
1210
00:50:06,559 --> 00:50:08,000
community and then they invite 200
1211
00:50:08,000 --> 00:50:09,440
people, right? And so it has a
1212
00:50:09,440 --> 00:50:11,040
compounding has a structural virality
1213
00:50:11,040 --> 00:50:13,359
built into it. So it compounds, right?
1214
00:50:13,359 --> 00:50:16,559
Long-term stick is a is is a compounding
1215
00:50:16,559 --> 00:50:18,559
vehicle. Meaning if I sell 100 customers
1216
00:50:18,559 --> 00:50:20,319
this year and I sell 100 customers next
1217
00:50:20,319 --> 00:50:21,680
year and I sell 100 customers the third
1218
00:50:21,680 --> 00:50:23,760
year, if I kept 100% of customers, my
1219
00:50:23,760 --> 00:50:24,880
business would be three times bigger
1220
00:50:24,880 --> 00:50:27,119
year three than it is today. And many of
1221
00:50:27,119 --> 00:50:29,760
you um operate from the position that in
1222
00:50:29,760 --> 00:50:31,760
order to grow, you have to grow sales.
1223
00:50:31,760 --> 00:50:33,839
And that is a way to grow. It is also
1224
00:50:33,839 --> 00:50:35,760
the hardest way to grow. It is
1225
00:50:35,760 --> 00:50:37,680
significantly more valuable to find a
1226
00:50:37,680 --> 00:50:39,359
product or service that people don't
1227
00:50:39,359 --> 00:50:41,119
cancel. And then you could literally
1228
00:50:41,119 --> 00:50:42,400
stay the same level of marketing and
1229
00:50:42,400 --> 00:50:44,559
sales and just keep getting bigger every
1230
00:50:44,559 --> 00:50:47,119
year by default.
1231
00:50:47,119 --> 00:50:49,040
Network effects like an actual network.
1232
00:50:49,040 --> 00:50:51,520
Like if you have 100 people and they're
1233
00:50:51,520 --> 00:50:53,920
all cool, if you add 101st person who's
1234
00:50:53,920 --> 00:50:55,920
also cool, the whole network gets
1235
00:50:55,920 --> 00:50:58,000
better. That is a true network effect.
1236
00:50:58,000 --> 00:50:59,359
Different than adding more people to a
1237
00:50:59,359 --> 00:51:01,359
services business. To be clear, a
1238
00:51:01,359 --> 00:51:02,559
service of business that adds more
1239
00:51:02,559 --> 00:51:04,160
people in general will dilute the
1240
00:51:04,160 --> 00:51:06,160
service quality in a network, it
1241
00:51:06,160 --> 00:51:07,440
enhances the value of the network.
1242
00:51:07,440 --> 00:51:08,880
Facebook has a network effect. The more
1243
00:51:08,880 --> 00:51:10,480
people go on Facebook, the more valuable
1244
00:51:10,480 --> 00:51:13,200
Facebook becomes, right? You can also
1245
00:51:13,200 --> 00:51:14,319
have this from an integrations
1246
00:51:14,319 --> 00:51:15,599
perspective. The more things you work
1247
00:51:15,599 --> 00:51:16,960
with, if you work with a lot of
1248
00:51:16,960 --> 00:51:18,240
different vendors and that becomes a
1249
00:51:18,240 --> 00:51:20,960
value ad to a customer base like Zapier
1250
00:51:20,960 --> 00:51:22,319
for example, it becomes a compounding
1251
00:51:22,319 --> 00:51:25,200
vehicle. Sales networks are also
1252
00:51:25,200 --> 00:51:26,720
compounding vehicles. So, real
1253
00:51:26,720 --> 00:51:28,480
brokerage, Chiron, um, who's our
1254
00:51:28,480 --> 00:51:31,040
president, he came because you can have
1255
00:51:31,040 --> 00:51:32,960
a product where people never stop buying
1256
00:51:32,960 --> 00:51:35,440
it, which is long-term stick. Or you can
1257
00:51:35,440 --> 00:51:37,119
have a product where, and, this is a lot
1258
00:51:37,119 --> 00:51:38,880
of you guys, by the way, um, where
1259
00:51:38,880 --> 00:51:40,079
people don't stick for a long term
1260
00:51:40,079 --> 00:51:41,440
because the nature of the product you
1261
00:51:41,440 --> 00:51:43,119
you sell. Like selling houses isn't like
1262
00:51:43,119 --> 00:51:45,280
a long term. Like maybe over many many
1263
00:51:45,280 --> 00:51:46,720
years you buy or sell houses the same
1264
00:51:46,720 --> 00:51:48,240
person multiple times, but from a
1265
00:51:48,240 --> 00:51:49,839
business perspective, the node of
1266
00:51:49,839 --> 00:51:52,079
production is the agent, not the
1267
00:51:52,079 --> 00:51:54,160
individual houses. And so then you
1268
00:51:54,160 --> 00:51:55,599
think, oh, okay, I just need to get
1269
00:51:55,599 --> 00:51:58,079
these nodes in and the stickiness occurs
1270
00:51:58,079 --> 00:52:00,800
with how well I'm able to attract and
1271
00:52:00,800 --> 00:52:03,839
recruit brokers or agents and then what
1272
00:52:03,839 --> 00:52:05,280
each of them is going to represent for
1273
00:52:05,280 --> 00:52:08,480
me. Mortgages work the same way.
1274
00:52:08,480 --> 00:52:10,480
And so I want to give you a quick
1275
00:52:10,480 --> 00:52:11,680
warning, which is the compounding
1276
00:52:11,680 --> 00:52:14,800
reality, which is that everything that I
1277
00:52:14,800 --> 00:52:16,000
just said is how you build a really big
1278
00:52:16,000 --> 00:52:17,599
business.
1279
00:52:17,599 --> 00:52:18,559
Everything I'm going to show you the
1280
00:52:18,559 --> 00:52:19,680
rest of the day is just going to help
1281
00:52:19,680 --> 00:52:20,960
you build whatever you have to be
1282
00:52:20,960 --> 00:52:23,359
bigger. So, you can become wealthy
1283
00:52:23,359 --> 00:52:26,240
without any of that. You're just not
1284
00:52:26,240 --> 00:52:28,640
going to become the best. And so, I
1285
00:52:28,640 --> 00:52:30,640
share that because I want to talk to
1286
00:52:30,640 --> 00:52:32,160
younger me in the audience or older me
1287
00:52:32,160 --> 00:52:34,640
in the audience, whatever. Um, because I
1288
00:52:34,640 --> 00:52:35,839
would want to know that stuff. I would
1289
00:52:35,839 --> 00:52:37,359
want to be like, how do I how do I how
1290
00:52:37,359 --> 00:52:38,960
do I win in my market? How do I win in
1291
00:52:38,960 --> 00:52:40,960
my category? Those things are how you
1292
00:52:40,960 --> 00:52:43,359
win in your category.
1293
00:52:43,359 --> 00:52:46,160
But if you just want to get rich, right?
1294
00:52:46,160 --> 00:52:47,440
If you just want to become wealthy or
1295
00:52:47,440 --> 00:52:49,280
independently wealthy, you don't have to
1296
00:52:49,280 --> 00:52:50,960
really be the best. You just have to
1297
00:52:50,960 --> 00:52:52,480
like make more than it cost you to make
1298
00:52:52,480 --> 00:52:54,079
it and do it for a long enough time,
1299
00:52:54,079 --> 00:52:57,359
right? And so there are two very basic
1300
00:52:57,359 --> 00:52:58,800
compounding wheels that every business
1301
00:52:58,800 --> 00:53:00,240
can build into it with basically no
1302
00:53:00,240 --> 00:53:02,480
extra thought. So the first, so there's
1303
00:53:02,480 --> 00:53:04,079
three, sorry. First is just reputation
1304
00:53:04,079 --> 00:53:05,119
and referrals. We talked about that
1305
00:53:05,119 --> 00:53:06,319
earlier. If you do a good job, if you do
1306
00:53:06,319 --> 00:53:07,359
that long enough, you'll just keep
1307
00:53:07,359 --> 00:53:09,200
making more. That's a great thing to
1308
00:53:09,200 --> 00:53:11,280
focus on. The second is just trying to
1309
00:53:11,280 --> 00:53:13,359
get people to keep buying. Like every
1310
00:53:13,359 --> 00:53:15,280
business can do this. And the third is
1311
00:53:15,280 --> 00:53:16,559
to get people to never stop selling for
1312
00:53:16,559 --> 00:53:18,000
you. These are the three most basic
1313
00:53:18,000 --> 00:53:19,760
compounding wheels that require no tech,
1314
00:53:19,760 --> 00:53:21,839
no fancy thinking, no fancy strategy.
1315
00:53:21,839 --> 00:53:25,359
Like anyone can do these three
1316
00:53:25,359 --> 00:53:26,800
and I think I covered this one already.
1317
00:53:26,800 --> 00:53:29,520
Okay, so here's the TLDDR uh what it
1318
00:53:29,520 --> 00:53:30,880
looks like when it's right. There's
1319
00:53:30,880 --> 00:53:32,319
three elements here. We've got
1320
00:53:32,319 --> 00:53:34,720
constraint, we apply leverage, and then
1321
00:53:34,720 --> 00:53:36,480
if we design our business properly, we
1322
00:53:36,480 --> 00:53:38,319
unlock compounding. That is what it
1323
00:53:38,319 --> 00:53:40,800
looks like when it's right.
1324
00:53:40,800 --> 00:53:43,359
That is what we're hoping to accomplish.
1325
00:53:43,359 --> 00:53:46,640
This is how you scale.
1326
00:53:46,640 --> 00:53:48,319
So
1327
00:53:48,319 --> 00:53:52,400
hopefully that sets a decent groundwork
1328
00:53:52,400 --> 00:53:54,160
for today. So that was a little bit
1329
00:53:54,160 --> 00:53:56,480
clouds. Now we're going to get really
1330
00:53:56,480 --> 00:53:58,640
tactical. Okay, you're like that's
1331
00:53:58,640 --> 00:54:01,440
awesome. Um but uh I have trouble
1332
00:54:01,440 --> 00:54:03,520
getting leads. So what do I do now? That
1333
00:54:03,520 --> 00:54:04,960
is what we're going to cover now. All
1334
00:54:04,960 --> 00:54:08,000
right. So our objective right now is to
1335
00:54:08,000 --> 00:54:11,200
find your specific solution path. And so
1336
00:54:11,200 --> 00:54:12,800
what I'm going to do is walk you through
1337
00:54:12,800 --> 00:54:14,640
the decision tree for your specific
1338
00:54:14,640 --> 00:54:16,240
problem. All right? And so we'll start
1339
00:54:16,240 --> 00:54:18,160
with the obvious, match the constraint
1340
00:54:18,160 --> 00:54:20,000
to the solution, and then we'll take the
1341
00:54:20,000 --> 00:54:21,680
highest likelihood path based on your
1342
00:54:21,680 --> 00:54:24,240
assets, skills, and resources. This
1343
00:54:24,240 --> 00:54:26,319
fundamentally is what you know separates
1344
00:54:26,319 --> 00:54:27,680
individual attention. So like when
1345
00:54:27,680 --> 00:54:29,520
people come out here, the main thing is
1346
00:54:29,520 --> 00:54:31,200
that we can really pick, okay, based on
1347
00:54:31,200 --> 00:54:32,559
everything we've seen in patterns across
1348
00:54:32,559 --> 00:54:34,480
your industry, this bet seems to work
1349
00:54:34,480 --> 00:54:36,160
the best for most people and given your
1350
00:54:36,160 --> 00:54:37,920
background, I'd tweak it like this.
1351
00:54:37,920 --> 00:54:40,000
That's the value. There might be six
1352
00:54:40,000 --> 00:54:41,599
paths up that mountain, but we think
1353
00:54:41,599 --> 00:54:43,040
this path is the highest likelihood for
1354
00:54:43,040 --> 00:54:45,680
you. Okay,
1355
00:54:45,680 --> 00:54:48,240
so um some of you guys saw this, you
1356
00:54:48,240 --> 00:54:50,800
know, 20 hours of me taking uh Hermosi
1357
00:54:50,800 --> 00:54:53,760
hotline calls, um which was actually a
1358
00:54:53,760 --> 00:54:56,800
ton of fun for me. Um and some of the
1359
00:54:56,800 --> 00:54:58,559
feedback that I got was like, "Dude, you
1360
00:54:58,559 --> 00:55:00,160
went from like commercial refrigerating
1361
00:55:00,160 --> 00:55:04,880
to insurance to a restaurant to a B2B
1362
00:55:04,880 --> 00:55:07,920
SAS platform." like and then still was
1363
00:55:07,920 --> 00:55:10,319
able to drill deep on that. And so I
1364
00:55:10,319 --> 00:55:11,440
want to share with you kind of the
1365
00:55:11,440 --> 00:55:13,440
framework for doing this because what I
1366
00:55:13,440 --> 00:55:14,720
was doing was just working through a
1367
00:55:14,720 --> 00:55:15,760
mental checklist that I've just
1368
00:55:15,760 --> 00:55:17,040
developed over the years having just
1369
00:55:17,040 --> 00:55:19,040
done this with a lot of businesses. And
1370
00:55:19,040 --> 00:55:20,800
so uh if you're going to write something
1371
00:55:20,800 --> 00:55:22,880
down, this would be this would be the
1372
00:55:22,880 --> 00:55:25,119
thing to write down. So this is a linear
1373
00:55:25,119 --> 00:55:27,280
approach to constraints. I will call
1374
00:55:27,280 --> 00:55:30,079
these the mosy six. Okay. So the first
1375
00:55:30,079 --> 00:55:31,680
question that you probably heard me ask
1376
00:55:31,680 --> 00:55:34,319
many times if you listen to that was why
1377
00:55:34,319 --> 00:55:37,440
can't we do more? Like what stops us
1378
00:55:37,440 --> 00:55:39,599
from just doing more? Because if we
1379
00:55:39,599 --> 00:55:43,280
think about what
1380
00:55:43,280 --> 00:55:45,280
what it takes
1381
00:55:45,280 --> 00:55:48,000
to make more money, this is going to be
1382
00:55:48,000 --> 00:55:49,200
some this is going to be some some high
1383
00:55:49,200 --> 00:55:52,720
flutin math right here. Okay.
1384
00:55:52,720 --> 00:55:56,000
Sell more,
1385
00:55:56,000 --> 00:55:59,319
worth more.
1386
00:56:03,599 --> 00:56:07,599
That's it. Sell more units,
1387
00:56:07,599 --> 00:56:10,240
make them worth more.
1388
00:56:10,240 --> 00:56:12,480
That's it. And so then we just start
1389
00:56:12,480 --> 00:56:13,760
with the question which is like why
1390
00:56:13,760 --> 00:56:16,000
can't we sell more? Now sometimes the
1391
00:56:16,000 --> 00:56:17,040
reason you can't sell more is because
1392
00:56:17,040 --> 00:56:18,400
they're not worth enough. And that's one
1393
00:56:18,400 --> 00:56:19,680
of the problems and we'll get to that.
1394
00:56:19,680 --> 00:56:21,440
But fundamentally starting with this as
1395
00:56:21,440 --> 00:56:23,119
the question
1396
00:56:23,119 --> 00:56:25,520
allows us to massively simplify our
1397
00:56:25,520 --> 00:56:27,040
scope in terms of what we're trying to
1398
00:56:27,040 --> 00:56:31,960
think about um to grow the business.
1399
00:56:32,160 --> 00:56:35,200
The next is the next five basically
1400
00:56:35,200 --> 00:56:36,880
answer the question why can't we do
1401
00:56:36,880 --> 00:56:38,480
more? Because if the answer the first
1402
00:56:38,480 --> 00:56:40,480
question is well we could then stop
1403
00:56:40,480 --> 00:56:43,760
there go do more right? But you've got
1404
00:56:43,760 --> 00:56:46,240
metrics, you've got market, you've got
1405
00:56:46,240 --> 00:56:48,400
model, you've got money, and you've got
1406
00:56:48,400 --> 00:56:50,640
manpower.
1407
00:56:50,640 --> 00:56:52,640
And those very conveniently were M's. I
1408
00:56:52,640 --> 00:56:54,240
was I was not actually really trying for
1409
00:56:54,240 --> 00:56:57,920
that. Um I had five of the six were M's
1410
00:56:57,920 --> 00:57:00,079
by by default and I switched data to
1411
00:57:00,079 --> 00:57:02,160
metrics and then they're all all M. So
1412
00:57:02,160 --> 00:57:04,960
little little cute ism for you. Um but
1413
00:57:04,960 --> 00:57:06,880
this is it. Like this is the decision
1414
00:57:06,880 --> 00:57:08,799
tree. I'm actually very proud of this
1415
00:57:08,799 --> 00:57:10,640
because this took like an enormous
1416
00:57:10,640 --> 00:57:12,960
amount of time to narrow down and do in
1417
00:57:12,960 --> 00:57:14,799
this sequence. So when I'm asking
1418
00:57:14,799 --> 00:57:16,160
questions, I'm actually trying to check
1419
00:57:16,160 --> 00:57:17,920
through this list as fast as I can so I
1420
00:57:17,920 --> 00:57:19,359
can drill down to what the constraint is
1421
00:57:19,359 --> 00:57:20,799
so we can grow the business or
1422
00:57:20,799 --> 00:57:24,480
debottleneck it. And so again, the goal
1423
00:57:24,480 --> 00:57:26,240
here is that you want to get off at the
1424
00:57:26,240 --> 00:57:27,760
first exit. The point isn't like I'm
1425
00:57:27,760 --> 00:57:28,960
going to go through all six of these.
1426
00:57:28,960 --> 00:57:30,319
No, the goal is if you can just do more
1427
00:57:30,319 --> 00:57:31,920
today, then just do more today. Get off.
1428
00:57:31,920 --> 00:57:33,680
Like there's nothing else you need,
1429
00:57:33,680 --> 00:57:36,160
right? And so I will say this in all
1430
00:57:36,160 --> 00:57:38,559
bold. If you can double your company
1431
00:57:38,559 --> 00:57:41,760
doing one thing, why do three?
1432
00:57:41,760 --> 00:57:44,400
And it usually is one thing. It's just
1433
00:57:44,400 --> 00:57:46,400
harder because you don't know how to do
1434
00:57:46,400 --> 00:57:48,799
it or it takes longer than you want. So
1435
00:57:48,799 --> 00:57:50,880
you distract yourself with things you do
1436
00:57:50,880 --> 00:57:53,280
know how to do that take less time. So
1437
00:57:53,280 --> 00:57:56,599
you don't grow.
1438
00:57:57,920 --> 00:58:00,960
That's real.
1439
00:58:00,960 --> 00:58:02,960
It's hard. You just don't know how.
1440
00:58:02,960 --> 00:58:04,000
Everything that you don't know how to do
1441
00:58:04,000 --> 00:58:06,240
is hard. So if you can just reframe hard
1442
00:58:06,240 --> 00:58:08,000
to I don't know how to do it yet. And
1443
00:58:08,000 --> 00:58:09,280
the good news is you've got a brain in
1444
00:58:09,280 --> 00:58:11,040
two hands. You can figure it out. All of
1445
00:58:11,040 --> 00:58:14,240
a sudden you can attack things. And so I
1446
00:58:14,240 --> 00:58:16,319
will reframe this key point which is
1447
00:58:16,319 --> 00:58:19,760
that you should seek hard. And you
1448
00:58:19,760 --> 00:58:22,079
should seek hard because the things that
1449
00:58:22,079 --> 00:58:23,359
are difficult are things that other
1450
00:58:23,359 --> 00:58:24,720
people also have to figure out. If you
1451
00:58:24,720 --> 00:58:26,079
have an opportunity that literally has
1452
00:58:26,079 --> 00:58:28,160
nothing hard about it and it's not hard
1453
00:58:28,160 --> 00:58:29,280
at all for you, then it's going to be
1454
00:58:29,280 --> 00:58:30,319
not hard at all for everyone else and
1455
00:58:30,319 --> 00:58:31,200
it's going to very quickly become
1456
00:58:31,200 --> 00:58:32,559
saturated and then eventually not be an
1457
00:58:32,559 --> 00:58:34,400
opportunity anymore. Now, you can take
1458
00:58:34,400 --> 00:58:35,920
the the position of like, I just jump
1459
00:58:35,920 --> 00:58:37,280
from thing to thing to thing, which many
1460
00:58:37,280 --> 00:58:39,040
people do, and they never really see
1461
00:58:39,040 --> 00:58:40,559
long-term success because they just jump
1462
00:58:40,559 --> 00:58:42,240
to the easiest path and they just
1463
00:58:42,240 --> 00:58:43,520
restart over and over again. They never
1464
00:58:43,520 --> 00:58:45,440
unlock compounding. And compounding is
1465
00:58:45,440 --> 00:58:47,920
where all the money is made.
1466
00:58:47,920 --> 00:58:50,240
So when you hit that wall where you're
1467
00:58:50,240 --> 00:58:51,839
like, I just don't know what to do, it
1468
00:58:51,839 --> 00:58:53,680
usually means there's a skill that I
1469
00:58:53,680 --> 00:58:55,839
need to learn. When you do that, then
1470
00:58:55,839 --> 00:58:59,599
you can unlock it. Okay, so let's start
1471
00:58:59,599 --> 00:59:02,640
with the Bosey 6, right? The six M's.
1472
00:59:02,640 --> 00:59:06,000
Why not more? Like why can't we do more?
1473
00:59:06,000 --> 00:59:07,440
And I asked this as the first question
1474
00:59:07,440 --> 00:59:09,440
because right now if if you're going
1475
00:59:09,440 --> 00:59:12,000
through this, if you can do more, you
1476
00:59:12,000 --> 00:59:14,079
should do more for the following
1477
00:59:14,079 --> 00:59:15,839
reasons.
1478
00:59:15,839 --> 00:59:18,400
more is the highest risk adjusted return
1479
00:59:18,400 --> 00:59:20,640
move. If something has already worked,
1480
00:59:20,640 --> 00:59:22,400
more of it has a very high likelihood of
1481
00:59:22,400 --> 00:59:25,520
working again, right? Like repeat
1482
00:59:25,520 --> 00:59:27,520
successful actions. If it worked, do it
1483
00:59:27,520 --> 00:59:30,079
again. And do it until it stops working.
1484
00:59:30,079 --> 00:59:32,240
But many so many times when I say, "Hey,
1485
00:59:32,240 --> 00:59:34,079
why can't we double our ad spend?" It's
1486
00:59:34,079 --> 00:59:35,119
like, "Well, I mean, we could." It's
1487
00:59:35,119 --> 00:59:37,440
like, "All right, get off the phone. Go
1488
00:59:37,440 --> 00:59:38,880
double your ad spend. Why can't we do
1489
00:59:38,880 --> 00:59:40,240
twice the reachout? I mean, I guess we
1490
00:59:40,240 --> 00:59:42,480
could go do that." It's like, "Well, I
1491
00:59:42,480 --> 00:59:44,079
was thinking about starting a a personal
1492
00:59:44,079 --> 00:59:47,520
podcast. Why just do more? Do that when
1493
00:59:47,520 --> 00:59:49,920
more stops working. More is by far the
1494
00:59:49,920 --> 00:59:52,240
easiest bet. And I have become this this
1495
00:59:52,240 --> 00:59:54,079
broken record on more because more takes
1496
00:59:54,079 --> 00:59:55,359
work. And I think that's why people
1497
00:59:55,359 --> 00:59:57,200
don't want to do it. More it just takes
1498
00:59:57,200 --> 01:00:00,400
a unbelievable amount of work. And so
1499
01:00:00,400 --> 01:00:01,760
the thing that people I think also miss
1500
01:00:01,760 --> 01:00:03,520
out on is this is that diminishing
1501
01:00:03,520 --> 01:00:05,040
returns are still returns. You're still
1502
01:00:05,040 --> 01:00:06,160
making progress. You're still getting
1503
01:00:06,160 --> 01:00:08,079
better. you not you might not be getting
1504
01:00:08,079 --> 01:00:10,400
better at the same rate. If your first,
1505
01:00:10,400 --> 01:00:12,559
you know, $100,000 of ad spend gets you
1506
01:00:12,559 --> 01:00:14,960
10x return and your next $100,000 of ad
1507
01:00:14,960 --> 01:00:17,359
spend gets you a 3x return, you still
1508
01:00:17,359 --> 01:00:19,359
get a return. It's still better than the
1509
01:00:19,359 --> 01:00:21,599
stock market, right? And so I think to
1510
01:00:21,599 --> 01:00:24,160
myself in those is like, do I have an
1511
01:00:24,160 --> 01:00:25,839
absolute return? And is there something
1512
01:00:25,839 --> 01:00:27,200
else that has an absolute return that's
1513
01:00:27,200 --> 01:00:28,400
higher? Then yeah, then maybe you would
1514
01:00:28,400 --> 01:00:30,000
allocate the resources there. But for
1515
01:00:30,000 --> 01:00:32,720
me, because of risk, I'll max out a path
1516
01:00:32,720 --> 01:00:34,000
before I'm ever going to consider doing
1517
01:00:34,000 --> 01:00:36,559
other stuff because I know this works.
1518
01:00:36,559 --> 01:00:38,720
Why would I take the shot? And if the
1519
01:00:38,720 --> 01:00:40,079
hard is, oh, I have to figure out how to
1520
01:00:40,079 --> 01:00:41,200
do more of this thing that I already
1521
01:00:41,200 --> 01:00:42,799
know works, then that's a a hard I'm
1522
01:00:42,799 --> 01:00:47,440
very confident, very happy to to attack.
1523
01:00:47,440 --> 01:00:49,520
And so, this is a really interesting uh
1524
01:00:49,520 --> 01:00:52,319
perspective that has only come this like
1525
01:00:52,319 --> 01:00:54,240
this took me so long to figure out. And
1526
01:00:54,240 --> 01:00:56,000
so for those of you who come to the uh
1527
01:00:56,000 --> 01:00:57,680
come in person you might have seen this
1528
01:00:57,680 --> 01:00:59,760
but for those of you who haven't then uh
1529
01:00:59,760 --> 01:01:01,280
then this will be new for you. All right
1530
01:01:01,280 --> 01:01:03,599
so if we imagine this line as the
1531
01:01:03,599 --> 01:01:04,960
revenue of the business let's just say
1532
01:01:04,960 --> 01:01:08,319
this is normal normal business activity.
1533
01:01:08,319 --> 01:01:10,640
What I've observed in my businesses is
1534
01:01:10,640 --> 01:01:13,760
that when I make a change I have about a
1535
01:01:13,760 --> 01:01:16,960
20% decrease in performance a decrement
1536
01:01:16,960 --> 01:01:18,799
in performance. So, whatever we were
1537
01:01:18,799 --> 01:01:19,920
doing, if I say we're going to implement
1538
01:01:19,920 --> 01:01:21,280
this new customer success process, this
1539
01:01:21,280 --> 01:01:22,640
new sales motion, this new pricing,
1540
01:01:22,640 --> 01:01:24,240
whatever it's going to be, right? I
1541
01:01:24,240 --> 01:01:25,839
typically expect, especially if there's
1542
01:01:25,839 --> 01:01:28,160
people involved, I'm going to have a 20%
1543
01:01:28,160 --> 01:01:30,799
decrease. Now, if I believe this to be
1544
01:01:30,799 --> 01:01:32,559
true, which I do in general, again, this
1545
01:01:32,559 --> 01:01:34,079
isn't, you know, rule of law. This is
1546
01:01:34,079 --> 01:01:36,559
just rule of thumb. If I have a 20%
1547
01:01:36,559 --> 01:01:37,920
decrease that's going to that I have a
1548
01:01:37,920 --> 01:01:39,520
fixed and absolute like I know it's
1549
01:01:39,520 --> 01:01:42,000
going to happen, right?
1550
01:01:42,000 --> 01:01:43,680
What kind of bets am I willing to take
1551
01:01:43,680 --> 01:01:45,359
if I know I'm going to guarantee to have
1552
01:01:45,359 --> 01:01:47,839
a 20% cost? Well, if I've got this idea
1553
01:01:47,839 --> 01:01:49,280
that I'm like, I think this could give
1554
01:01:49,280 --> 01:01:52,559
us a 5% lift. Am I willing to stomach a
1555
01:01:52,559 --> 01:01:55,680
20% cost for the chance at a 5% lift?
1556
01:01:55,680 --> 01:01:58,400
Guaranteed negative 20 possible plus
1557
01:01:58,400 --> 01:02:03,280
five. No, I'll just keep living my life.
1558
01:02:03,280 --> 01:02:06,079
And so what ends up happening is I have
1559
01:02:06,079 --> 01:02:08,240
kind of like a rule of 20% as a minimum,
1560
01:02:08,240 --> 01:02:10,240
which is that if I'm going to guarantee
1561
01:02:10,240 --> 01:02:13,040
20, I got to have at least a 20%
1562
01:02:13,040 --> 01:02:15,440
increase for whatever thing I'm going to
1563
01:02:15,440 --> 01:02:17,440
implement in a business for it to be
1564
01:02:17,440 --> 01:02:19,359
worth the risk, for it to be worth the
1565
01:02:19,359 --> 01:02:21,920
work. Now, some of you might be like,
1566
01:02:21,920 --> 01:02:23,760
well, hey, if I still did that 20%, you
1567
01:02:23,760 --> 01:02:25,200
know, if I get that 5% improvement, it
1568
01:02:25,200 --> 01:02:26,079
would take me four or five months, and
1569
01:02:26,079 --> 01:02:27,680
then I'll finally be at 5% above
1570
01:02:27,680 --> 01:02:29,599
baseline. But let's also look at how
1571
01:02:29,599 --> 01:02:31,599
this works in reality.
1572
01:02:31,599 --> 01:02:32,640
you're going to start seeing this
1573
01:02:32,640 --> 01:02:35,200
improvement, right, over time, but the
1574
01:02:35,200 --> 01:02:36,000
thing is is that you're going to get
1575
01:02:36,000 --> 01:02:38,240
this really great idea over here and
1576
01:02:38,240 --> 01:02:39,440
then you're be like, "Oh yeah, well,
1577
01:02:39,440 --> 01:02:40,799
let's change this other thing about the
1578
01:02:40,799 --> 01:02:42,480
business and then you're going to get
1579
01:02:42,480 --> 01:02:44,480
another 20% decrease." And so the
1580
01:02:44,480 --> 01:02:46,160
business is almost always operating
1581
01:02:46,160 --> 01:02:47,760
below
1582
01:02:47,760 --> 01:02:49,599
its hypothetical capacity because you're
1583
01:02:49,599 --> 01:02:51,680
constantly changing things. And so I
1584
01:02:51,680 --> 01:02:52,559
would say one of the biggest things
1585
01:02:52,559 --> 01:02:53,440
that's changed about me as an
1586
01:02:53,440 --> 01:02:54,640
entrepreneur as I've gotten, you know,
1587
01:02:54,640 --> 01:02:56,480
developed more is that I just change
1588
01:02:56,480 --> 01:02:58,319
fewer things. And if something's going
1589
01:02:58,319 --> 01:03:00,400
to change, it better be worth it because
1590
01:03:00,400 --> 01:03:01,680
we're going to disrupt a ton of
1591
01:03:01,680 --> 01:03:02,799
different process flows, a ton of
1592
01:03:02,799 --> 01:03:04,240
different teammates. And one of the
1593
01:03:04,240 --> 01:03:06,880
things that you will find in general,
1594
01:03:06,880 --> 01:03:08,160
and this is kind of a fun one that again
1595
01:03:08,160 --> 01:03:10,000
you can extrapolate out, if you change
1596
01:03:10,000 --> 01:03:11,440
nothing about a business, it'll usually
1597
01:03:11,440 --> 01:03:14,319
improve by like 3% a year. If you change
1598
01:03:14,319 --> 01:03:16,400
nothing, right? That's why GDP in
1599
01:03:16,400 --> 01:03:17,839
general just grows by that amount. And
1600
01:03:17,839 --> 01:03:19,359
it's not because of population growth,
1601
01:03:19,359 --> 01:03:21,520
right? And so when we see this, I'm
1602
01:03:21,520 --> 01:03:23,599
like, okay, well, there's some degree of
1603
01:03:23,599 --> 01:03:24,880
population growth. But the point is this
1604
01:03:24,880 --> 01:03:26,559
is that if you just leave people alone,
1605
01:03:26,559 --> 01:03:27,760
they tend to get better at their jobs.
1606
01:03:27,760 --> 01:03:28,880
They just tend to get more efficient.
1607
01:03:28,880 --> 01:03:30,000
They develop the skills. They do more
1608
01:03:30,000 --> 01:03:31,599
repetitions, they get good. And when
1609
01:03:31,599 --> 01:03:32,720
that happens, the business just
1610
01:03:32,720 --> 01:03:35,359
improves, which is pretty sweet. And so
1611
01:03:35,359 --> 01:03:36,640
I've seen some of the biggest gains in
1612
01:03:36,640 --> 01:03:37,760
businesses sometimes when I just like
1613
01:03:37,760 --> 01:03:39,039
make my change and I just leave it
1614
01:03:39,039 --> 01:03:41,599
alone. And that's why lay some be like
1615
01:03:41,599 --> 01:03:43,119
just go away, go find a project, go
1616
01:03:43,119 --> 01:03:46,160
write another book, right? Um and so I
1617
01:03:46,160 --> 01:03:47,599
bring this up because I think many of
1618
01:03:47,599 --> 01:03:49,920
you may be guilty of this like I was for
1619
01:03:49,920 --> 01:03:51,359
I mean I still this is like an
1620
01:03:51,359 --> 01:03:52,960
addiction. you have to like, you know, I
1621
01:03:52,960 --> 01:03:56,480
fight it every day, right? But me
1622
01:03:56,480 --> 01:03:58,160
understanding that there is a fixed cost
1623
01:03:58,160 --> 01:04:01,920
of change with a variable upside has
1624
01:04:01,920 --> 01:04:03,359
dramatically reduced the number of
1625
01:04:03,359 --> 01:04:04,559
things that I'm willing to take the bet
1626
01:04:04,559 --> 01:04:07,559
on.
1627
01:04:08,160 --> 01:04:09,920
So,
1628
01:04:09,920 --> 01:04:14,640
that's my 20% minimum gain rule. Now,
1629
01:04:14,640 --> 01:04:15,920
this should look familiar to some of you
1630
01:04:15,920 --> 01:04:18,079
guys. Are you guys digging this, by the
1631
01:04:18,079 --> 01:04:21,359
way? that would uh I need to I need the
1632
01:04:21,359 --> 01:04:23,599
the approval of others in order to fill
1633
01:04:23,599 --> 01:04:26,559
the hole in my soul. Uh
1634
01:04:26,559 --> 01:04:29,760
I'm kidding. Um so if we're still back
1635
01:04:29,760 --> 01:04:34,680
on uh why not more, right?
1636
01:04:34,720 --> 01:04:36,960
Why aren't we doing
1637
01:04:36,960 --> 01:04:39,119
spending more money on ads? Why aren't
1638
01:04:39,119 --> 01:04:41,599
we making more creative? Why aren't we
1639
01:04:41,599 --> 01:04:45,039
adding more platforms? Right? More is
1640
01:04:45,039 --> 01:04:46,799
going to immediately make us more of the
1641
01:04:46,799 --> 01:04:49,440
core four, right?
1642
01:04:49,440 --> 01:04:50,640
And hopefully this should be familiar
1643
01:04:50,640 --> 01:04:52,880
with you guys and appreciate I just I
1644
01:04:52,880 --> 01:04:54,559
have a five-second delay. So I'm like I
1645
01:04:54,559 --> 01:04:55,599
make a point and be like I thought this
1646
01:04:55,599 --> 01:04:56,720
was a good point and I'll see nothing in
1647
01:04:56,720 --> 01:04:58,720
the chat and then I I see it. So I
1648
01:04:58,720 --> 01:05:01,280
appreciate you guys. Okay. So if we're
1649
01:05:01,280 --> 01:05:03,039
saying why can't we do more? Why can't
1650
01:05:03,039 --> 01:05:04,240
we spend more money on ads? Why can't we
1651
01:05:04,240 --> 01:05:05,440
make more creative? Why can't we make
1652
01:05:05,440 --> 01:05:07,839
more uh post across Instagram and Tik
1653
01:05:07,839 --> 01:05:10,880
Tok, right? All this stuff. Content
1654
01:05:10,880 --> 01:05:13,039
same. Can we spend more make more
1655
01:05:13,039 --> 01:05:15,039
creative? Can we also add in tech? Can
1656
01:05:15,039 --> 01:05:16,880
we do we need to recruit more people on
1657
01:05:16,880 --> 01:05:18,720
our media team in order to produce more
1658
01:05:18,720 --> 01:05:21,359
content? Okay, then let's do that. If we
1659
01:05:21,359 --> 01:05:22,799
have outreach as our primary way of
1660
01:05:22,799 --> 01:05:24,559
getting customers or getting affiliates,
1661
01:05:24,559 --> 01:05:26,160
right? We can spend more money on it. We
1662
01:05:26,160 --> 01:05:27,680
can put more messages out there. We can
1663
01:05:27,680 --> 01:05:29,119
do outreach on more platforms. We can
1664
01:05:29,119 --> 01:05:30,559
add more technology and we can add more
1665
01:05:30,559 --> 01:05:33,119
people. All of those things are very low
1666
01:05:33,119 --> 01:05:35,200
riskadjusted moors. And right now, if
1667
01:05:35,200 --> 01:05:37,440
you have that opportunity, you should do
1668
01:05:37,440 --> 01:05:40,079
it.
1669
01:05:40,079 --> 01:05:42,400
More works for astonishingly longer than
1670
01:05:42,400 --> 01:05:45,599
you expect.
1671
01:05:45,760 --> 01:05:47,680
So, I'll give you a couple reframes on
1672
01:05:47,680 --> 01:05:48,640
this because I think this is so
1673
01:05:48,640 --> 01:05:50,240
powerful. And if if you just got this in
1674
01:05:50,240 --> 01:05:53,200
terms of like if if I just if I just got
1675
01:05:53,200 --> 01:05:56,240
this through to 20% of you, I would see
1676
01:05:56,240 --> 01:05:58,240
today as a massive win. But you guys
1677
01:05:58,240 --> 01:05:59,200
have probably heard the story of the
1678
01:05:59,200 --> 01:06:01,599
pottery class. Teacher has two classes,
1679
01:06:01,599 --> 01:06:03,039
tells class one, we're going to grade
1680
01:06:03,039 --> 01:06:04,480
you on the person who makes the best
1681
01:06:04,480 --> 01:06:06,720
pot. Class two, he says, "Hey, I'm gonna
1682
01:06:06,720 --> 01:06:08,079
grade you on the number of pots you
1683
01:06:08,079 --> 01:06:10,240
make." At the end of the semester,
1684
01:06:10,240 --> 01:06:11,760
what's interesting about this little
1685
01:06:11,760 --> 01:06:15,839
story is that the class that did the
1686
01:06:15,839 --> 01:06:19,839
most pots not only made more pots, but
1687
01:06:19,839 --> 01:06:22,000
also their pots were better than the
1688
01:06:22,000 --> 01:06:23,520
ones that obsessed on trying to make the
1689
01:06:23,520 --> 01:06:27,359
best pot. Because quantity begets
1690
01:06:27,359 --> 01:06:30,319
quality. Doing more of stuff makes you
1691
01:06:30,319 --> 01:06:32,960
better at doing the stuff, which is why
1692
01:06:32,960 --> 01:06:34,559
I try to count in hundreds, right?
1693
01:06:34,559 --> 01:06:35,599
Right. I'll see someone say like, you
1694
01:06:35,599 --> 01:06:37,200
know, I had a couple of the Hormosi
1695
01:06:37,200 --> 01:06:38,960
hotlines that you guys probably heard.
1696
01:06:38,960 --> 01:06:41,599
Hey, uh, you know, I' I I've got seven
1697
01:06:41,599 --> 01:06:43,520
customers. Okay, fine. Got seven
1698
01:06:43,520 --> 01:06:45,200
customers. And I'm like, okay, how'd you
1699
01:06:45,200 --> 01:06:46,400
get the customers? Well, you know, I got
1700
01:06:46,400 --> 01:06:48,240
three of them from cold outreach and I
1701
01:06:48,240 --> 01:06:50,000
got one from attending an event and I
1702
01:06:50,000 --> 01:06:51,440
got, you know, one from a referral,
1703
01:06:51,440 --> 01:06:53,440
whatever. And it's like, okay, so of
1704
01:06:53,440 --> 01:06:54,880
those, there's clear input outputs, you
1705
01:06:54,880 --> 01:06:55,839
can go to more events. There's clear
1706
01:06:55,839 --> 01:06:57,680
input outputs, you can do more outreach.
1707
01:06:57,680 --> 01:07:00,799
Why aren't you doing more?
1708
01:07:00,799 --> 01:07:02,480
Well, I didn't have the data. Metrics
1709
01:07:02,480 --> 01:07:03,839
number one, right? It's the next it's
1710
01:07:03,839 --> 01:07:05,760
the next M, right? But this is why we
1711
01:07:05,760 --> 01:07:07,599
count in hundreds. So like I don't even
1712
01:07:07,599 --> 01:07:09,200
I can't even accept that we've done a
1713
01:07:09,200 --> 01:07:10,559
sufficient amount of anything until
1714
01:07:10,559 --> 01:07:12,880
we've done it a 100 times. Like a
1715
01:07:12,880 --> 01:07:14,880
hundred becomes your measuring stick.
1716
01:07:14,880 --> 01:07:17,680
You want to make content, do a hundred.
1717
01:07:17,680 --> 01:07:19,119
You want to you want to you want to do
1718
01:07:19,119 --> 01:07:22,240
outreach 100 a day. Like it just it just
1719
01:07:22,240 --> 01:07:24,400
it takes so much more volume. Like
1720
01:07:24,400 --> 01:07:26,720
that's what I want to translate. And so
1721
01:07:26,720 --> 01:07:29,440
right now the symptom of this if you
1722
01:07:29,440 --> 01:07:30,480
know if you're suffering from
1723
01:07:30,480 --> 01:07:32,079
insufficient volume is because things
1724
01:07:32,079 --> 01:07:34,880
are volatile. Things are erratic. Some
1725
01:07:34,880 --> 01:07:36,240
months you have two sales, some months
1726
01:07:36,240 --> 01:07:39,680
you have four. What's going on? The the
1727
01:07:39,680 --> 01:07:42,000
problem is you're not doing enough. And
1728
01:07:42,000 --> 01:07:44,079
so if we think about the problem of the
1729
01:07:44,079 --> 01:07:46,079
business as insufficient advertising. We
1730
01:07:46,079 --> 01:07:48,799
have not advertised enough. Then two
1731
01:07:48,799 --> 01:07:51,119
sales let's say over a month means that
1732
01:07:51,119 --> 01:07:52,960
you do x amount of advertising to get
1733
01:07:52,960 --> 01:07:54,799
two sales. And so if we want to get to
1734
01:07:54,799 --> 01:07:57,200
two sales a day, we have to do 30 times
1735
01:07:57,200 --> 01:07:59,440
that level of advertising
1736
01:07:59,440 --> 01:08:01,440
per day
1737
01:08:01,440 --> 01:08:03,680
to get the goal. And that takes us from
1738
01:08:03,680 --> 01:08:06,799
two a month to two a day. That's it. And
1739
01:08:06,799 --> 01:08:08,240
you're like, there's no way I could do
1740
01:08:08,240 --> 01:08:10,559
that kind of volume. Of course, you can.
1741
01:08:10,559 --> 01:08:12,400
It just takes time. But at least if
1742
01:08:12,400 --> 01:08:14,480
you're attacking from that perspective,
1743
01:08:14,480 --> 01:08:17,040
you're far more likely to achieve it.
1744
01:08:17,040 --> 01:08:19,040
And so, um, some of you guys have heard
1745
01:08:19,040 --> 01:08:20,560
this one. I think it's I'm not sure. I
1746
01:08:20,560 --> 01:08:21,600
can't remember if this is the story I
1747
01:08:21,600 --> 01:08:24,719
use in the book. Um, but old mentor of
1748
01:08:24,719 --> 01:08:26,640
mine, I start my gym up. Uh, don't have
1749
01:08:26,640 --> 01:08:28,400
enough customers. He crushed it with
1750
01:08:28,400 --> 01:08:30,400
flyers. He said, "Hey, put a flyer out."
1751
01:08:30,400 --> 01:08:32,719
I say, "Okay." I put 300 flyers out on
1752
01:08:32,719 --> 01:08:35,120
cars. I wait for the the phone to ring.
1753
01:08:35,120 --> 01:08:36,640
Phone only rings one time. It's a guy
1754
01:08:36,640 --> 01:08:38,000
who tells me that I dinged his Mercedes.
1755
01:08:38,000 --> 01:08:38,960
I immediately hung up because I was
1756
01:08:38,960 --> 01:08:39,839
like, "I don't have the money to fix
1757
01:08:39,839 --> 01:08:42,400
this." And so, I call my my my mentor
1758
01:08:42,400 --> 01:08:43,759
back like a couple weeks later and I
1759
01:08:43,759 --> 01:08:45,839
say, "Hey, put the flyers out." And he's
1760
01:08:45,839 --> 01:08:47,120
like, "Oh, yeah. How'd those work?" and
1761
01:08:47,120 --> 01:08:48,560
he's like, you know, excited and upbeat
1762
01:08:48,560 --> 01:08:50,159
and I was like ready to give him like a
1763
01:08:50,159 --> 01:08:52,239
verbal lashing of like, I did it and
1764
01:08:52,239 --> 01:08:54,239
your idea didn't work, right? And he
1765
01:08:54,239 --> 01:08:56,480
said, uh, and so I was like, yeah, I I
1766
01:08:56,480 --> 01:08:58,239
put out the the flyers and I didn't get
1767
01:08:58,239 --> 01:08:59,920
anything back. And he said, well, what
1768
01:08:59,920 --> 01:09:01,839
was your test size? First question he
1769
01:09:01,839 --> 01:09:03,920
asked. And I was like, what do you mean?
1770
01:09:03,920 --> 01:09:05,520
He was like, what was your test size? I
1771
01:09:05,520 --> 01:09:08,799
was like, why I put 300 out? And I said
1772
01:09:08,799 --> 01:09:10,480
it so like I was like, I put 300 out.
1773
01:09:10,480 --> 01:09:12,159
What are you talking about? He's like,
1774
01:09:12,159 --> 01:09:13,520
oh, he's like, hard to know if anything
1775
01:09:13,520 --> 01:09:16,000
works at 300. He's like, "We test with
1776
01:09:16,000 --> 01:09:17,520
5,000." And he's like, "And then once it
1777
01:09:17,520 --> 01:09:21,120
works, we'll do 5,000 flyers a day."
1778
01:09:21,120 --> 01:09:26,960
Oh, got it. 150,000 flyers a month,
1779
01:09:26,960 --> 01:09:31,120
not 300 one time.
1780
01:09:31,120 --> 01:09:33,120
And so I say this because like you you
1781
01:09:33,120 --> 01:09:34,880
can't imagine that someone's doing three
1782
01:09:34,880 --> 01:09:37,359
times your volume or five times like
1783
01:09:37,359 --> 01:09:38,799
there's no way. It's like in that
1784
01:09:38,799 --> 01:09:40,480
instance he was doing 500 times my
1785
01:09:40,480 --> 01:09:44,239
volume like real or 5,000 whatever the
1786
01:09:44,239 --> 01:09:47,120
math is there a lot right people can do
1787
01:09:47,120 --> 01:09:49,759
that much more volume right like we make
1788
01:09:49,759 --> 01:09:51,120
I don't know what the number is shy's
1789
01:09:51,120 --> 01:09:53,520
behind the camera I'm guessing 500 450
1790
01:09:53,520 --> 01:09:56,800
pieces of content a week it's a lot it's
1791
01:09:56,800 --> 01:09:59,760
a lot for like my content why isn't my
1792
01:09:59,760 --> 01:10:01,199
content work it's like dude I literally
1793
01:10:01,199 --> 01:10:05,600
do 20 times more 50 times more but not
1794
01:10:05,600 --> 01:10:07,280
only do I do 50 times more I've done it
1795
01:10:07,280 --> 01:10:11,360
for five years, 50 times more.
1796
01:10:11,360 --> 01:10:12,880
And so that is it's almost like I made
1797
01:10:12,880 --> 01:10:14,640
these slides. So AC that's that's our
1798
01:10:14,640 --> 01:10:17,920
current volume, right? And so if you're
1799
01:10:17,920 --> 01:10:19,840
and this is a special call out, if
1800
01:10:19,840 --> 01:10:20,960
you're at less than a million dollars a
1801
01:10:20,960 --> 01:10:22,880
year, almost guaranteed you're just not
1802
01:10:22,880 --> 01:10:25,360
doing enough. Like nine times out of 10,
1803
01:10:25,360 --> 01:10:27,120
like I I could just hang up the phone.
1804
01:10:27,120 --> 01:10:28,080
This is what you're just not doing
1805
01:10:28,080 --> 01:10:29,360
enough. You're just not doing enough.
1806
01:10:29,360 --> 01:10:30,880
Not even close. Sometimes there's
1807
01:10:30,880 --> 01:10:32,159
strategy issues. We'll get to that in a
1808
01:10:32,159 --> 01:10:34,000
second. But like more times than not,
1809
01:10:34,000 --> 01:10:35,120
you just need to do more because you
1810
01:10:35,120 --> 01:10:36,080
don't even know if anything's working
1811
01:10:36,080 --> 01:10:38,080
because you're not doing enough.
1812
01:10:38,080 --> 01:10:39,679
And so one of the difficulties of this
1813
01:10:39,679 --> 01:10:41,520
is it's not only doing like the only way
1814
01:10:41,520 --> 01:10:43,280
to do a tremendous amount is to do it
1815
01:10:43,280 --> 01:10:44,719
for a long period of time, right?
1816
01:10:44,719 --> 01:10:46,560
Because like if I did 450 for one week,
1817
01:10:46,560 --> 01:10:47,840
it wouldn't do that much. It would do
1818
01:10:47,840 --> 01:10:50,080
more than doing nothing, right? But if I
1819
01:10:50,080 --> 01:10:51,920
want to do 35,000 pieces of content, the
1820
01:10:51,920 --> 01:10:53,040
likelihood I can do that in a week is
1821
01:10:53,040 --> 01:10:54,560
low. Like it's just a lot of work,
1822
01:10:54,560 --> 01:10:56,800
right? Which is like why time unlocks
1823
01:10:56,800 --> 01:10:59,199
increasing amounts of volume. And what's
1824
01:10:59,199 --> 01:11:00,640
difficult about consistency, it's very
1825
01:11:00,640 --> 01:11:02,480
hard to observe. Which is why like when
1826
01:11:02,480 --> 01:11:03,600
people come and start working at
1827
01:11:03,600 --> 01:11:05,920
acquisition.com, you can only observe
1828
01:11:05,920 --> 01:11:09,040
consistency by consistently observing,
1829
01:11:09,040 --> 01:11:11,440
right? Like if you want to see me show
1830
01:11:11,440 --> 01:11:13,440
up every day at 4:00 or 5, you know, in
1831
01:11:13,440 --> 01:11:15,199
the morning, you've got to be here at
1832
01:11:15,199 --> 01:11:16,960
4:00 or 5 in the morning every day to
1833
01:11:16,960 --> 01:11:18,640
see that. And if you do it for a week,
1834
01:11:18,640 --> 01:11:20,000
you still haven't observed the
1835
01:11:20,000 --> 01:11:22,159
consistency of a year of years of doing
1836
01:11:22,159 --> 01:11:24,000
something like that. And so I bring this
1837
01:11:24,000 --> 01:11:25,920
up because like consistency is the
1838
01:11:25,920 --> 01:11:29,199
secret and it's so hard to see and you
1839
01:11:29,199 --> 01:11:33,960
have to be consistent to observe it.
1840
01:11:36,320 --> 01:11:39,840
And so if we have uh a business, which
1841
01:11:39,840 --> 01:11:42,239
we all do, so great. Hold on. Let me
1842
01:11:42,239 --> 01:11:44,960
show you what this uh what this looks
1843
01:11:44,960 --> 01:11:47,960
like.
1844
01:11:48,239 --> 01:11:53,480
So, let's say we've got this black box.
1845
01:12:10,800 --> 01:12:12,960
Okay.
1846
01:12:12,960 --> 01:12:14,560
If you think about a business in in the
1847
01:12:14,560 --> 01:12:17,040
simplest sense possible, you've got
1848
01:12:17,040 --> 01:12:19,440
advertising which is the inputs. You've
1849
01:12:19,440 --> 01:12:21,760
got some money-making box and then money
1850
01:12:21,760 --> 01:12:23,920
comes out. You turn raw attention into
1851
01:12:23,920 --> 01:12:26,719
money. That's the that's the machine.
1852
01:12:26,719 --> 01:12:28,960
Okay.
1853
01:12:28,960 --> 01:12:31,520
So, it would follow that the first thing
1854
01:12:31,520 --> 01:12:33,360
to do to make more dollars come out of
1855
01:12:33,360 --> 01:12:37,360
this side is just jam more here.
1856
01:12:37,360 --> 01:12:38,880
And people just don't do that. They're
1857
01:12:38,880 --> 01:12:40,239
like, "No, I would rather mess with my
1858
01:12:40,239 --> 01:12:41,520
black box." It's like, dude, we could
1859
01:12:41,520 --> 01:12:44,560
just jam more in. Just jam. Like, why
1860
01:12:44,560 --> 01:12:47,840
not more? Tell me. Why not more? For the
1861
01:12:47,840 --> 01:12:51,440
love of Pete. More. Okay. Hopefully I
1862
01:12:51,440 --> 01:12:54,000
hopefully I ran that one in. Um, and
1863
01:12:54,000 --> 01:12:55,280
what's interesting about this too is
1864
01:12:55,280 --> 01:12:56,800
that some of you guys are like crushing
1865
01:12:56,800 --> 01:12:58,560
it and don't even know it. Like I I'll
1866
01:12:58,560 --> 01:12:59,600
have a call where someone say like,
1867
01:12:59,600 --> 01:13:01,120
"Hey, you know, I'm getting I'm getting
1868
01:13:01,120 --> 01:13:02,719
20 to1 on my advertising and I'm
1869
01:13:02,719 --> 01:13:03,920
spending $1,000 a month." I'm like,
1870
01:13:03,920 --> 01:13:05,280
"Dude, imagine if you spent, you know, a
1871
01:13:05,280 --> 01:13:08,560
hundred, right?" Um, because when it
1872
01:13:08,560 --> 01:13:09,840
gets easy is when you go hard. What's
1873
01:13:09,840 --> 01:13:10,880
interesting is that it's usually the
1874
01:13:10,880 --> 01:13:12,320
opposite for most people. When something
1875
01:13:12,320 --> 01:13:13,679
really starts working, they let off the
1876
01:13:13,679 --> 01:13:15,199
gas. They're like, "Well, it's working."
1877
01:13:15,199 --> 01:13:16,719
It's like, "Dude, like you don't know
1878
01:13:16,719 --> 01:13:18,560
how long it's going to work for, like
1879
01:13:18,560 --> 01:13:20,080
this is when you lean in. This is when
1880
01:13:20,080 --> 01:13:22,000
you go hard."
1881
01:13:22,000 --> 01:13:24,159
And so my reminder here is that if the
1882
01:13:24,159 --> 01:13:27,040
answer uh is nothing is stopping you
1883
01:13:27,040 --> 01:13:29,360
from doing more, then that's it. Go do
1884
01:13:29,360 --> 01:13:30,880
more of what works. The goal is to get
1885
01:13:30,880 --> 01:13:33,120
off at the first and earliest exit here.
1886
01:13:33,120 --> 01:13:34,719
All right.
1887
01:13:34,719 --> 01:13:38,800
So, that was the first M of the Mosy 6.
1888
01:13:38,800 --> 01:13:41,679
Now, let's cover the second.
1889
01:13:41,679 --> 01:13:43,679
Yeah, Jordan French, you're getting 7x
1890
01:13:43,679 --> 01:13:45,360
row ads, uh, but you're only spending
1891
01:13:45,360 --> 01:13:49,360
2,000 a month. Why not more?
1892
01:13:49,360 --> 01:13:51,760
So, here are some reasons. Uh, more
1893
01:13:51,760 --> 01:13:53,280
isn't the answer. So, the first most
1894
01:13:53,280 --> 01:13:54,960
common, like these are not necessarily
1895
01:13:54,960 --> 01:13:56,719
the most common, but I did these in
1896
01:13:56,719 --> 01:13:58,719
order of like how I think through it.
1897
01:13:58,719 --> 01:14:00,239
So, it might be like I don't know what
1898
01:14:00,239 --> 01:14:01,520
my ads I don't know what I'm spending
1899
01:14:01,520 --> 01:14:02,480
and I don't know what I'm making. It's
1900
01:14:02,480 --> 01:14:05,600
like we'll do we can't do anything. like
1901
01:14:05,600 --> 01:14:06,960
we can't do more because you don't know
1902
01:14:06,960 --> 01:14:08,880
if more is work if any is working right
1903
01:14:08,880 --> 01:14:10,239
so it's like let's get our numbers this
1904
01:14:10,239 --> 01:14:13,199
where the metrics comes in right uh and
1905
01:14:13,199 --> 01:14:15,920
so this is where data knowing becomes
1906
01:14:15,920 --> 01:14:17,280
the priorities that means you stop what
1907
01:14:17,280 --> 01:14:18,960
you're doing you maintain the you know
1908
01:14:18,960 --> 01:14:20,800
obviously keep making the sausage but
1909
01:14:20,800 --> 01:14:22,800
the rest of your resources go towards we
1910
01:14:22,800 --> 01:14:24,320
have to track we have to know how many
1911
01:14:24,320 --> 01:14:25,520
people are walking in the door we have
1912
01:14:25,520 --> 01:14:26,640
to know how many phone calls are coming
1913
01:14:26,640 --> 01:14:27,679
in we have to know how many people are
1914
01:14:27,679 --> 01:14:29,199
buying we have to start tracking the
1915
01:14:29,199 --> 01:14:32,960
basic metrics of the business
1916
01:14:32,960 --> 01:14:35,360
and I I say this so heavy-handedly right
1917
01:14:35,360 --> 01:14:36,880
but I also want to balance it with a
1918
01:14:36,880 --> 01:14:38,159
very important point which is that you
1919
01:14:38,159 --> 01:14:41,520
have to balance it with your gut meaning
1920
01:14:41,520 --> 01:14:44,239
you will never have complete data like
1921
01:14:44,239 --> 01:14:46,320
this is a like not never like you will
1922
01:14:46,320 --> 01:14:47,760
have okay you will never have complete
1923
01:14:47,760 --> 01:14:50,239
data on everything in your business but
1924
01:14:50,239 --> 01:14:53,280
you will have some data and so the game
1925
01:14:53,280 --> 01:14:55,280
of entrepreneurship is oftentimes making
1926
01:14:55,280 --> 01:14:57,760
decisions with incomplete data but at
1927
01:14:57,760 --> 01:15:00,640
least you can get directional well when
1928
01:15:00,640 --> 01:15:02,480
we spend more money on ads we make more
1929
01:15:02,480 --> 01:15:03,679
money every month and when we don't
1930
01:15:03,679 --> 01:15:05,280
spend money on ads we don't make. I
1931
01:15:05,280 --> 01:15:06,719
didn't track anything. I don't know what
1932
01:15:06,719 --> 01:15:08,640
the rorowaz is, right? Like the more
1933
01:15:08,640 --> 01:15:10,719
specific we can be, the more surgical we
1934
01:15:10,719 --> 01:15:12,239
can be in terms of juicing the hell out
1935
01:15:12,239 --> 01:15:14,640
of it. But the at the simplest level, if
1936
01:15:14,640 --> 01:15:16,719
we spend money on ads, then we make
1937
01:15:16,719 --> 01:15:18,640
more. Great. Let's try and do more of
1938
01:15:18,640 --> 01:15:22,400
that. It's a decent bet, right? And so
1939
01:15:22,400 --> 01:15:24,239
the next framework is, okay, I think if
1940
01:15:24,239 --> 01:15:26,320
this is directionally correct, is it
1941
01:15:26,320 --> 01:15:28,400
reversible or irreversible? Is me
1942
01:15:28,400 --> 01:15:29,679
spending money on ads going to be a
1943
01:15:29,679 --> 01:15:30,960
reversible decision? Yeah, I could just
1944
01:15:30,960 --> 01:15:32,080
stop spending money on ads. It's not a
1945
01:15:32,080 --> 01:15:33,920
big deal. Now if I spend my life savings
1946
01:15:33,920 --> 01:15:35,360
on it and I have no backup that would be
1947
01:15:35,360 --> 01:15:37,360
an irreversible decision, right? So this
1948
01:15:37,360 --> 01:15:41,679
is how we think through bets, right?
1949
01:15:41,679 --> 01:15:43,840
And so I think this is super important
1950
01:15:43,840 --> 01:15:46,400
because many many businesses are
1951
01:15:46,400 --> 01:15:48,159
actually not limited by anything but the
1952
01:15:48,159 --> 01:15:51,360
entrepreneurs's ability to decide
1953
01:15:51,360 --> 01:15:53,760
like really want you to take this in and
1954
01:15:53,760 --> 01:15:55,760
again this took me like not just like a
1955
01:15:55,760 --> 01:15:57,280
couple years but like probably over a
1956
01:15:57,280 --> 01:15:59,760
decade to figure out which is the speed
1957
01:15:59,760 --> 01:16:01,760
of my business is proportional to my
1958
01:16:01,760 --> 01:16:03,760
speed of my ability to make decisions.
1959
01:16:03,760 --> 01:16:05,120
And so fundamentally well then what is a
1960
01:16:05,120 --> 01:16:06,880
decision? Well, once we make a decision,
1961
01:16:06,880 --> 01:16:09,199
we begin to allocate a resource. And so
1962
01:16:09,199 --> 01:16:10,640
the speed of the business is based on
1963
01:16:10,640 --> 01:16:12,320
your speed of your ability to allocate
1964
01:16:12,320 --> 01:16:14,400
resources, which is going to reverse
1965
01:16:14,400 --> 01:16:17,679
back into your ability to decide, right?
1966
01:16:17,679 --> 01:16:20,480
And so that decision-m
1967
01:16:20,480 --> 01:16:22,800
your ability to be definitive, like you
1968
01:16:22,800 --> 01:16:24,159
should decide very quickly on things
1969
01:16:24,159 --> 01:16:25,679
that are reversible. It's not the end of
1970
01:16:25,679 --> 01:16:27,440
the world. And I think what happens,
1971
01:16:27,440 --> 01:16:28,560
especially as a business gets a little
1972
01:16:28,560 --> 01:16:29,520
bit bigger, you have more decision
1973
01:16:29,520 --> 01:16:31,520
makers, people start to treat all
1974
01:16:31,520 --> 01:16:32,640
decisions as though they are
1975
01:16:32,640 --> 01:16:35,600
irreversible because people hold other
1976
01:16:35,600 --> 01:16:38,080
people accountable for mistakes. And I
1977
01:16:38,080 --> 01:16:39,520
think this is what creates a culture of
1978
01:16:39,520 --> 01:16:41,440
fear. And so it's like you have I mean
1979
01:16:41,440 --> 01:16:42,719
there's a very long time that Facebook,
1980
01:16:42,719 --> 01:16:44,400
one of Facebook's core values was uh
1981
01:16:44,400 --> 01:16:46,400
move fast and break stuff. is that that
1982
01:16:46,400 --> 01:16:47,840
was a value of theirs. Like we have to
1983
01:16:47,840 --> 01:16:49,520
be willing to just ship it and see what
1984
01:16:49,520 --> 01:16:51,520
happens and if it if it breaks we can we
1985
01:16:51,520 --> 01:16:54,800
can roll it back. And
1986
01:16:54,800 --> 01:16:56,880
the speed of decisions and here's where
1987
01:16:56,880 --> 01:16:59,120
it gets here's where it gets nasty is
1988
01:16:59,120 --> 01:17:01,360
typically proportional to the quality
1989
01:17:01,360 --> 01:17:03,280
and quantity of data because when you
1990
01:17:03,280 --> 01:17:05,520
have very clear data speed of decision
1991
01:17:05,520 --> 01:17:07,280
goes up because the data is very clear.
1992
01:17:07,280 --> 01:17:08,880
It paints a clear picture. If you had
1993
01:17:08,880 --> 01:17:10,480
all the data you could make the decision
1994
01:17:10,480 --> 01:17:12,480
immediately with high confidence. And so
1995
01:17:12,480 --> 01:17:14,159
this is where data although it feels
1996
01:17:14,159 --> 01:17:16,880
like a very boring subject allows you to
1997
01:17:16,880 --> 01:17:18,159
move the business faster because it
1998
01:17:18,159 --> 01:17:19,360
allows you to decide faster which allows
1999
01:17:19,360 --> 01:17:20,719
you to allocate resources faster which
2000
01:17:20,719 --> 01:17:22,880
allows you to get returns faster. That's
2001
01:17:22,880 --> 01:17:24,800
the cycle.
2002
01:17:24,800 --> 01:17:26,719
And so if you can't do more because you
2003
01:17:26,719 --> 01:17:28,320
don't know your numbers then knowing
2004
01:17:28,320 --> 01:17:29,520
your numbers becomes priority number
2005
01:17:29,520 --> 01:17:31,440
one.
2006
01:17:31,440 --> 01:17:32,880
And so one of the things that I I like
2007
01:17:32,880 --> 01:17:34,880
to frame for like when the you know the
2008
01:17:34,880 --> 01:17:36,159
big baller business owners come out and
2009
01:17:36,159 --> 01:17:38,560
they spend $135,000 to to to to hang out
2010
01:17:38,560 --> 01:17:40,080
with me for a day. This is kind of
2011
01:17:40,080 --> 01:17:42,480
light. I do a lot of work but is that
2012
01:17:42,480 --> 01:17:44,000
it's like I provide decisions as a
2013
01:17:44,000 --> 01:17:46,080
service like what are the big juicy
2014
01:17:46,080 --> 01:17:47,440
decisions that we need to make and let's
2015
01:17:47,440 --> 01:17:48,719
make them so that you can feel confident
2016
01:17:48,719 --> 01:17:52,080
in allocating the resources and going.
2017
01:17:52,080 --> 01:17:54,960
So think about that like your job the
2018
01:17:54,960 --> 01:17:56,400
job to be done the job you're hired to
2019
01:17:56,400 --> 01:17:58,000
do as the entrepreneur is that you
2020
01:17:58,000 --> 01:17:59,440
provide decisions as a service to the
2021
01:17:59,440 --> 01:18:01,440
business. The higher up you go it's
2022
01:18:01,440 --> 01:18:03,840
almost entirely your job is just to make
2023
01:18:03,840 --> 01:18:06,080
good decisions.
2024
01:18:06,080 --> 01:18:08,239
So, at the at the most tactical level
2025
01:18:08,239 --> 01:18:10,080
here, make sure you have the basics
2026
01:18:10,080 --> 01:18:13,360
down. So, lead, scheduled, show, sales,
2027
01:18:13,360 --> 01:18:15,679
and then the math ones, like those are
2028
01:18:15,679 --> 01:18:16,719
all like if you don't know how to do
2029
01:18:16,719 --> 01:18:19,440
those, like those you can Google those.
2030
01:18:19,440 --> 01:18:21,040
They're not hard to figure out. And then
2031
01:18:21,040 --> 01:18:24,239
CAC, lifetime gross profit, revenue, uh,
2032
01:18:24,239 --> 01:18:26,400
profit, and then cash flow, right? These
2033
01:18:26,400 --> 01:18:27,520
are the things that you should know how
2034
01:18:27,520 --> 01:18:30,719
to do. Now if you should have the lost
2035
01:18:30,719 --> 01:18:33,120
chapters. Um
2036
01:18:33,120 --> 01:18:34,800
these are the back of nacket methods for
2037
01:18:34,800 --> 01:18:36,560
these are just leads is you just count
2038
01:18:36,560 --> 01:18:39,520
in your CRM right schedules you can
2039
01:18:39,520 --> 01:18:41,679
literally just count shows you can also
2040
01:18:41,679 --> 01:18:44,000
count and then just do a percentages you
2041
01:18:44,000 --> 01:18:46,159
know scheduled over leads gives you how
2042
01:18:46,159 --> 01:18:47,679
many people what your schedule rate is
2043
01:18:47,679 --> 01:18:48,880
your shows over scheduled gives you your
2044
01:18:48,880 --> 01:18:50,560
show rate your sales over your shows
2045
01:18:50,560 --> 01:18:52,960
gives you your close rate right um very
2046
01:18:52,960 --> 01:18:54,560
straightforward your cost to car
2047
01:18:54,560 --> 01:18:57,199
customer I have entire chapters on CAC
2048
01:18:57,199 --> 01:19:00,000
lifetime gross profit and payback period
2049
01:19:00,000 --> 01:19:02,080
inside of the lost chapter book. They're
2050
01:19:02,080 --> 01:19:03,679
also inside the money models course.
2051
01:19:03,679 --> 01:19:05,920
Okay, so uh which is if those of you who
2052
01:19:05,920 --> 01:19:08,800
are in the um in the school group, uh
2053
01:19:08,800 --> 01:19:11,360
it's there and you can also see it on my
2054
01:19:11,360 --> 01:19:12,880
site. Okay, so it's it's free. All
2055
01:19:12,880 --> 01:19:17,440
right, just it's in there. Okay, so we
2056
01:19:17,440 --> 01:19:19,760
want to do more and if we can do more,
2057
01:19:19,760 --> 01:19:22,239
we do more. If we can't do more, the
2058
01:19:22,239 --> 01:19:23,440
first reason that we might not do more
2059
01:19:23,440 --> 01:19:24,480
is because we just don't have the
2060
01:19:24,480 --> 01:19:25,600
metrics. If you don't have the metrics,
2061
01:19:25,600 --> 01:19:26,719
then go get the metrics. That's your
2062
01:19:26,719 --> 01:19:29,840
that's your exit exit ramp. Okay, the
2063
01:19:29,840 --> 01:19:31,920
next one is gonna be market. So, this
2064
01:19:31,920 --> 01:19:33,840
one's interesting.
2065
01:19:33,840 --> 01:19:35,679
So, we say, "Hey, I can't do more
2066
01:19:35,679 --> 01:19:37,280
because my market is too small." And
2067
01:19:37,280 --> 01:19:39,280
that may be true. It's probably not, but
2068
01:19:39,280 --> 01:19:42,480
it may be true. So, if you're a local
2069
01:19:42,480 --> 01:19:45,600
business, it's possible. Uh, I talked to
2070
01:19:45,600 --> 01:19:47,679
somebody on the Rosie hotline during the
2071
01:19:47,679 --> 01:19:48,640
live. I don't know if you guys remember
2072
01:19:48,640 --> 01:19:49,760
this, or some of you guys might have
2073
01:19:49,760 --> 01:19:53,760
been there. Um he had I think it was 140
2074
01:19:53,760 --> 01:19:56,080
people in his town and he had a local
2075
01:19:56,080 --> 01:19:59,120
business that was a lounge.
2076
01:19:59,120 --> 01:20:00,640
Yeah. Like you're not like you're not
2077
01:20:00,640 --> 01:20:01,600
going to scale that to a billion
2078
01:20:01,600 --> 01:20:02,640
dollars. Like there's just there's
2079
01:20:02,640 --> 01:20:04,239
literally no way. I mean literally the
2080
01:20:04,239 --> 01:20:06,719
aggregate economy of the local area is
2081
01:20:06,719 --> 01:20:09,360
140 people's salary times their salary
2082
01:20:09,360 --> 01:20:10,960
or like people times the salary. That's
2083
01:20:10,960 --> 01:20:13,040
it. That's if you that's if 100% of
2084
01:20:13,040 --> 01:20:14,400
people will give you 100% of their
2085
01:20:14,400 --> 01:20:17,679
money. That's it. There's no more. You
2086
01:20:17,679 --> 01:20:18,880
can't do anything else. Just like the
2087
01:20:18,880 --> 01:20:21,040
GDP of the world is limited by 8 point
2088
01:20:21,040 --> 01:20:22,640
whatever billion people that that exists
2089
01:20:22,640 --> 01:20:24,159
like you can't you can't sell more than
2090
01:20:24,159 --> 01:20:29,760
that that's it right um so uh also kind
2091
01:20:29,760 --> 01:20:31,199
of fun fact like you can you can fact
2092
01:20:31,199 --> 01:20:32,480
check because I heard somebody the other
2093
01:20:32,480 --> 01:20:33,760
day one of these tech founders who was
2094
01:20:33,760 --> 01:20:36,239
like you know uh attention on is
2095
01:20:36,239 --> 01:20:38,400
compounding at an exponential rate and I
2096
01:20:38,400 --> 01:20:40,640
thought about that and I was like that's
2097
01:20:40,640 --> 01:20:42,960
not true there's eight billion people
2098
01:20:42,960 --> 01:20:44,320
there's 24 hours that's it that's max
2099
01:20:44,320 --> 01:20:46,159
attention that's all there is like it
2100
01:20:46,159 --> 01:20:47,280
can't compound an exponential rate
2101
01:20:47,280 --> 01:20:48,080
there's eight billion of us there's
2102
01:20:48,080 --> 01:20:48,880
There's only so many eyeballs and
2103
01:20:48,880 --> 01:20:51,120
earballs. That's it. And so there are
2104
01:20:51,120 --> 01:20:53,600
there are real maximums. However,
2105
01:20:53,600 --> 01:20:56,880
they're typically so much higher than
2106
01:20:56,880 --> 01:20:59,360
you think they are. And so if you were
2107
01:20:59,360 --> 01:21:01,280
local, it's possible. If you're anything
2108
01:21:01,280 --> 01:21:03,679
else, if you sell nationally, you sell
2109
01:21:03,679 --> 01:21:06,159
internationally, you sell online, it's
2110
01:21:06,159 --> 01:21:07,679
super unlikely that you've saturated
2111
01:21:07,679 --> 01:21:09,760
your quote market.
2112
01:21:09,760 --> 01:21:11,120
And also to the same degree, if you are
2113
01:21:11,120 --> 01:21:12,320
in a local business, you could just go
2114
01:21:12,320 --> 01:21:14,159
to another market, which is fine. But if
2115
01:21:14,159 --> 01:21:16,880
you're like, I've maxed out. I I'm in,
2116
01:21:16,880 --> 01:21:18,480
you know, a town of 400 people in
2117
01:21:18,480 --> 01:21:20,960
Kentucky and I have I have a gym. Yeah.
2118
01:21:20,960 --> 01:21:22,480
Well, you know, you if you have all 400
2119
01:21:22,480 --> 01:21:24,000
people, like you you got it, you know,
2120
01:21:24,000 --> 01:21:25,199
like now we got to do another one,
2121
01:21:25,199 --> 01:21:28,000
right? And so I I would encourage you to
2122
01:21:28,000 --> 01:21:30,560
Google industry revenue because it's a
2123
01:21:30,560 --> 01:21:32,239
great way to humble yourself when you're
2124
01:21:32,239 --> 01:21:33,600
like, you know what, uh I think I've
2125
01:21:33,600 --> 01:21:34,960
got, you know, we're doing $2 million a
2126
01:21:34,960 --> 01:21:36,159
year and I think I've saturated the
2127
01:21:36,159 --> 01:21:38,880
niche of of uh chiropractor agencies,
2128
01:21:38,880 --> 01:21:42,159
right? It's like, no, you haven't. And
2129
01:21:42,159 --> 01:21:43,520
what's crazy about this is that this is
2130
01:21:43,520 --> 01:21:46,000
one of the most commonly stated reasons
2131
01:21:46,000 --> 01:21:47,920
that I get for why someone can't grow.
2132
01:21:47,920 --> 01:21:49,840
And it's also one of the least correct
2133
01:21:49,840 --> 01:21:52,000
and least commonly true, right? Like if
2134
01:21:52,000 --> 01:21:53,040
you're actually, you know what's funny
2135
01:21:53,040 --> 01:21:55,920
is that the business this happens so
2136
01:21:55,920 --> 01:21:57,760
frequently. It's kind of funny. The the
2137
01:21:57,760 --> 01:21:59,520
businesses that are at the like I have
2138
01:21:59,520 --> 01:22:01,840
140 people in my market, I they almost
2139
01:22:01,840 --> 01:22:03,360
never say that they're the ones that
2140
01:22:03,360 --> 01:22:05,120
have a market that's too small. It's the
2141
01:22:05,120 --> 01:22:06,320
people are like, I'm going after weight
2142
01:22:06,320 --> 01:22:07,920
loss and I'm making $5 million a year
2143
01:22:07,920 --> 01:22:09,199
and I think I've capped it. I'm like, I
2144
01:22:09,199 --> 01:22:10,639
don't know. It's a 70 billion dollar
2145
01:22:10,639 --> 01:22:14,239
industry like probably haven't right and
2146
01:22:14,239 --> 01:22:15,679
so I'll tell you a little story about I
2147
01:22:15,679 --> 01:22:17,360
had this belief broken for me too which
2148
01:22:17,360 --> 01:22:18,960
was um that's why it's so nefarious
2149
01:22:18,960 --> 01:22:21,120
because it's so easy it just like it
2150
01:22:21,120 --> 01:22:22,800
just protects your ego so well just
2151
01:22:22,800 --> 01:22:24,080
gives you this big warm hug and it's
2152
01:22:24,080 --> 01:22:25,600
like dude it's just the market's too
2153
01:22:25,600 --> 01:22:27,360
small you're already winner like you've
2154
01:22:27,360 --> 01:22:29,360
got it all man you've got it all like no
2155
01:22:29,360 --> 01:22:30,960
you can't make anymore because you just
2156
01:22:30,960 --> 01:22:33,840
outside circumstances it's not you right
2157
01:22:33,840 --> 01:22:36,400
so uh you know Jim Mo was capped at I
2158
01:22:36,400 --> 01:22:37,520
can't remember what it was but we were
2159
01:22:37,520 --> 01:22:41,280
at 30ish And um I had somebody reach out
2160
01:22:41,280 --> 01:22:43,520
who was a sales guy um and he was
2161
01:22:43,520 --> 01:22:45,520
telling me that he worked at a different
2162
01:22:45,520 --> 01:22:46,800
gym company that I'd never heard of
2163
01:22:46,800 --> 01:22:48,639
before. And I was like never even heard
2164
01:22:48,639 --> 01:22:50,400
of these guys. And so I said, "Well, you
2165
01:22:50,400 --> 01:22:51,760
know, how big's your, you know, outbound
2166
01:22:51,760 --> 01:22:52,880
team that you work on?" And I think he
2167
01:22:52,880 --> 01:22:54,880
said 40 or 50 guys, whatever it was, a
2168
01:22:54,880 --> 01:22:56,639
decent amount at the time. And I was
2169
01:22:56,639 --> 01:22:58,560
like, "Whoa, 40 or 50 guys doing
2170
01:22:58,560 --> 01:22:59,920
outbound?" I was like, "Well, what's
2171
01:22:59,920 --> 01:23:00,960
revenue for you guys?" And he said,
2172
01:23:00,960 --> 01:23:03,679
"About 10 million a month." And I was I
2173
01:23:03,679 --> 01:23:05,440
was like floored. Like I if I had
2174
01:23:05,440 --> 01:23:06,560
glasses, I would have taken the glasses
2175
01:23:06,560 --> 01:23:08,000
and thrown on, but I don't wear glasses.
2176
01:23:08,000 --> 01:23:09,360
But if I did, I would have thrown them
2177
01:23:09,360 --> 01:23:11,040
on the floor. And so the thing is is
2178
01:23:11,040 --> 01:23:13,199
that that that story though completely
2179
01:23:13,199 --> 01:23:14,880
shifted my perspective of how many more
2180
01:23:14,880 --> 01:23:16,800
gyms there were available out there that
2181
01:23:16,800 --> 01:23:19,040
I was just only reaching on one channel.
2182
01:23:19,040 --> 01:23:22,080
I maybe maybe I tapped a channel, maybe
2183
01:23:22,080 --> 01:23:24,719
probably not, but maybe one element of
2184
01:23:24,719 --> 01:23:26,400
one channel, but there's so many other
2185
01:23:26,400 --> 01:23:29,360
channels, right? And so if you've been
2186
01:23:29,360 --> 01:23:30,400
following my stuff for a while, you've
2187
01:23:30,400 --> 01:23:31,440
seen this before, but it's, you know,
2188
01:23:31,440 --> 01:23:32,480
sometimes we need to be reminded more
2189
01:23:32,480 --> 01:23:33,920
than we need to be taught. All right? Is
2190
01:23:33,920 --> 01:23:35,920
that like people think it's the thing on
2191
01:23:35,920 --> 01:23:37,679
the left, right? I'm the only one
2192
01:23:37,679 --> 01:23:39,520
marketing to, you know, vegan
2193
01:23:39,520 --> 01:23:42,239
powerlifters on on on on Facebook,
2194
01:23:42,239 --> 01:23:44,000
right? And then somebody else comes in
2195
01:23:44,000 --> 01:23:45,280
and says, I also help vegan
2196
01:23:45,280 --> 01:23:46,320
powerlifters. You're like, what the
2197
01:23:46,320 --> 01:23:48,320
hell? Now we're splitting this pie in
2198
01:23:48,320 --> 01:23:49,920
half. And then two other people come in
2199
01:23:49,920 --> 01:23:51,760
and you're like, oh, what the heck, man?
2200
01:23:51,760 --> 01:23:53,280
Now it's I've got a quarter of the
2201
01:23:53,280 --> 01:23:55,360
market. When the reality is that it
2202
01:23:55,360 --> 01:23:57,120
looks much more like the image on the
2203
01:23:57,120 --> 01:23:59,920
right, which is most people think uh,
2204
01:23:59,920 --> 01:24:01,120
you know, they've got their one method,
2205
01:24:01,120 --> 01:24:02,639
one platform, one medium, which is fine
2206
01:24:02,639 --> 01:24:03,600
when you're starting out, but you
2207
01:24:03,600 --> 01:24:05,120
haven't capped you haven't capped your
2208
01:24:05,120 --> 01:24:07,600
market. You might have kept one platform
2209
01:24:07,600 --> 01:24:09,360
maybe, probably not. Maybe, probably
2210
01:24:09,360 --> 01:24:11,840
not, right? But to the right, right, is
2211
01:24:11,840 --> 01:24:13,520
what it really is. Is that you've only
2212
01:24:13,520 --> 01:24:15,120
got one method of doing this, which is
2213
01:24:15,120 --> 01:24:16,800
you post content. You're only doing on
2214
01:24:16,800 --> 01:24:18,639
one platform, okay? And you've only got
2215
01:24:18,639 --> 01:24:20,239
one medium on that platform. So, you've
2216
01:24:20,239 --> 01:24:22,000
got this tiny itty bitty bitty slice of
2217
01:24:22,000 --> 01:24:24,719
of a tiny of even bigger pie of another
2218
01:24:24,719 --> 01:24:27,120
of a table full of pies, right? There's
2219
01:24:27,120 --> 01:24:29,199
so much traffic. And this is something
2220
01:24:29,199 --> 01:24:30,719
that took me a very because it's a
2221
01:24:30,719 --> 01:24:33,120
belief thing. It's a it's a declarative
2222
01:24:33,120 --> 01:24:34,960
view of the world. Like if you if you
2223
01:24:34,960 --> 01:24:36,560
limit your view of how much traffic you
2224
01:24:36,560 --> 01:24:39,120
think there is, there just isn't. Like
2225
01:24:39,120 --> 01:24:41,199
some of you guys saw a clip that I had
2226
01:24:41,199 --> 01:24:45,040
of me walking um on the strip and some
2227
01:24:45,040 --> 01:24:46,400
guys comes up and says, "Hey, you know,
2228
01:24:46,400 --> 01:24:47,760
I love your stuff, whatever." And I was
2229
01:24:47,760 --> 01:24:49,040
like, "Oh, thanks, man. Come to the book
2230
01:24:49,040 --> 01:24:51,679
launch." And he was like, "What's that?"
2231
01:24:51,679 --> 01:24:52,800
I was like, "The book launch, the book
2232
01:24:52,800 --> 01:24:53,760
that I'm holding, all these green guys
2233
01:24:53,760 --> 01:24:55,920
behind me holding all these these green
2234
01:24:55,920 --> 01:24:57,840
madness." He's like, "Oh, sorry. I'm not
2235
01:24:57,840 --> 01:24:59,600
going to be in town." I was like, "It's
2236
01:24:59,600 --> 01:25:01,280
virtual. Like, it's all good." And he's
2237
01:25:01,280 --> 01:25:02,400
like, "Okay, I'll check it out." Right?
2238
01:25:02,400 --> 01:25:04,080
And then he he walks off. And so it's
2239
01:25:04,080 --> 01:25:06,000
just this this this great reminder. And
2240
01:25:06,000 --> 01:25:07,280
while I was on the trip, I probably had
2241
01:25:07,280 --> 01:25:08,800
like five or six people who like had
2242
01:25:08,800 --> 01:25:11,280
seen my stuff while I was walking there.
2243
01:25:11,280 --> 01:25:13,760
I think one of them knew the book launch
2244
01:25:13,760 --> 01:25:16,800
was coming, maybe. And so again, it's
2245
01:25:16,800 --> 01:25:20,800
like no one knows you exist. No one. No
2246
01:25:20,800 --> 01:25:23,120
one knows you exist. There's so much
2247
01:25:23,120 --> 01:25:24,800
traffic. There's so many people. It's
2248
01:25:24,800 --> 01:25:27,280
hard to comprehend what 8 billion is.
2249
01:25:27,280 --> 01:25:29,040
It's a lot.
2250
01:25:29,040 --> 01:25:30,639
So,
2251
01:25:30,639 --> 01:25:32,159
here's some actions for smaller business
2252
01:25:32,159 --> 01:25:33,520
or local businesses because you're
2253
01:25:33,520 --> 01:25:34,560
probably the only ones that could
2254
01:25:34,560 --> 01:25:36,320
potentially be affected by this. One is
2255
01:25:36,320 --> 01:25:37,840
you can consider expanding your existing
2256
01:25:37,840 --> 01:25:39,280
location. Knock down a wall, see if you
2257
01:25:39,280 --> 01:25:40,800
can lease the place next door. You can
2258
01:25:40,800 --> 01:25:42,800
also make it more efficient. So, within
2259
01:25:42,800 --> 01:25:44,400
your four walls, increase the delivery
2260
01:25:44,400 --> 01:25:46,239
ratio. I'll talk more about that uh a
2261
01:25:46,239 --> 01:25:47,920
little later. Um, but you can increase
2262
01:25:47,920 --> 01:25:49,120
the ratio. If you had a restaurant, you
2263
01:25:49,120 --> 01:25:50,400
could tighten the tables up. You could
2264
01:25:50,400 --> 01:25:52,080
add more chairs. Like, you could
2265
01:25:52,080 --> 01:25:53,840
experiment with times. Like, these are
2266
01:25:53,840 --> 01:25:54,800
things that can increase how much
2267
01:25:54,800 --> 01:25:56,800
throughput you get. Um, you can expand
2268
01:25:56,800 --> 01:25:58,400
channels. So, the only exception that
2269
01:25:58,400 --> 01:26:00,960
I've made to my one platform, one avatar
2270
01:26:00,960 --> 01:26:04,800
um one offer uh rule is for local
2271
01:26:04,800 --> 01:26:06,239
businesses. It's the only exception that
2272
01:26:06,239 --> 01:26:07,679
I'll give. And the main reason there is
2273
01:26:07,679 --> 01:26:10,000
just because like if you are in a local
2274
01:26:10,000 --> 01:26:11,280
market and you are, you know, you've got
2275
01:26:11,280 --> 01:26:13,280
10,000 people, they're not all going to
2276
01:26:13,280 --> 01:26:14,960
be on Meta. They're not all going to be
2277
01:26:14,960 --> 01:26:16,880
on, you know, Google. So, you might have
2278
01:26:16,880 --> 01:26:19,760
to do some direct mail and some Google
2279
01:26:19,760 --> 01:26:22,000
ads and some radio ads and some, etc.,
2280
01:26:22,000 --> 01:26:24,719
etc. And so in a local market, it's one
2281
01:26:24,719 --> 01:26:26,159
of the only times I'm like, it's okay to
2282
01:26:26,159 --> 01:26:28,960
have more than one advertising method.
2283
01:26:28,960 --> 01:26:30,159
You could also just do the obvious,
2284
01:26:30,159 --> 01:26:31,920
which is like, you're right, that market
2285
01:26:31,920 --> 01:26:33,360
is too small, and so we need to save up
2286
01:26:33,360 --> 01:26:34,480
our shekels and open up another
2287
01:26:34,480 --> 01:26:37,679
location, which is fine, right? Now,
2288
01:26:37,679 --> 01:26:38,880
another way you can do it is you can
2289
01:26:38,880 --> 01:26:41,280
expand uh market segment. So, we were
2290
01:26:41,280 --> 01:26:42,880
only doing moms, but now we do moms and
2291
01:26:42,880 --> 01:26:45,920
dads. Okay? Again, these are for local
2292
01:26:45,920 --> 01:26:48,080
businesses. The last one I would say is
2293
01:26:48,080 --> 01:26:50,960
a uh I would hardcore reserve because
2294
01:26:50,960 --> 01:26:52,639
that's a significant change in strategy.
2295
01:26:52,639 --> 01:26:54,159
And if the business is working and this
2296
01:26:54,159 --> 01:26:55,679
is actually the true limiter, the true
2297
01:26:55,679 --> 01:26:57,040
constraint, then I'd rather just say,
2298
01:26:57,040 --> 01:26:58,080
"Cool, this thing's working. It's
2299
01:26:58,080 --> 01:27:00,719
profitable. Let's just repeat it."
2300
01:27:00,719 --> 01:27:02,239
So,
2301
01:27:02,239 --> 01:27:03,679
why can't we do more? If you can do
2302
01:27:03,679 --> 01:27:05,120
more, do it. If you can't do more
2303
01:27:05,120 --> 01:27:06,080
because you don't know your metrics,
2304
01:27:06,080 --> 01:27:07,920
then go get your metrics. If you have
2305
01:27:07,920 --> 01:27:09,760
your metrics and you're like, I just
2306
01:27:09,760 --> 01:27:11,520
think that based on these metrics, uh,
2307
01:27:11,520 --> 01:27:13,520
the market's the issue. uh super super
2308
01:27:13,520 --> 01:27:14,719
super super super super super super
2309
01:27:14,719 --> 01:27:16,880
super unlikely,
2310
01:27:16,880 --> 01:27:18,639
but if you're in a tiny tiny tiny local
2311
01:27:18,639 --> 01:27:20,560
market, possible.
2312
01:27:20,560 --> 01:27:22,400
So then we get to model. Okay, so I've
2313
01:27:22,400 --> 01:27:23,679
got all these things. So my market's not
2314
01:27:23,679 --> 01:27:25,040
too small. I do have my numbers and I
2315
01:27:25,040 --> 01:27:27,360
can't do more. Why not?
2316
01:27:27,360 --> 01:27:28,880
And this actually happens a fair amount,
2317
01:27:28,880 --> 01:27:31,199
which is uh someone says, "I'm just not
2318
01:27:31,199 --> 01:27:32,480
sure if it's worth it. I'm not sure if
2319
01:27:32,480 --> 01:27:33,920
this is going to help me hit my
2320
01:27:33,920 --> 01:27:35,360
overarching goals. Like I started this
2321
01:27:35,360 --> 01:27:37,360
business a few years ago and like you
2322
01:27:37,360 --> 01:27:38,480
know, it's just not what I thought it
2323
01:27:38,480 --> 01:27:41,719
was going to be.
2324
01:27:42,800 --> 01:27:45,199
I'm not in love with it anymore.
2325
01:27:45,199 --> 01:27:47,520
You know the words.
2326
01:27:47,520 --> 01:27:49,440
So, I'll tell you a couple stories here
2327
01:27:49,440 --> 01:27:53,280
to to reframe this. So, Kale, who's GM
2328
01:27:53,280 --> 01:27:56,400
of or CEO, excuse me, of Gym Launch, now
2329
01:27:56,400 --> 01:27:59,280
it's been four years since we sold. Um,
2330
01:27:59,280 --> 01:28:00,880
he was actually like the f one of the
2331
01:28:00,880 --> 01:28:02,560
first 10 people that actually got sold
2332
01:28:02,560 --> 01:28:04,880
as a client into into the business. And
2333
01:28:04,880 --> 01:28:06,080
I remember having this conversation with
2334
01:28:06,080 --> 01:28:07,840
him where I think at the time, I don't
2335
01:28:07,840 --> 01:28:08,880
remember. I think it was it was like
2336
01:28:08,880 --> 01:28:12,719
$10,000 or something to start. And he
2337
01:28:12,719 --> 01:28:14,639
said, "I would totally do this, but I
2338
01:28:14,639 --> 01:28:16,320
just paid $10,000 to this other guy to
2339
01:28:16,320 --> 01:28:17,760
help me start an online fitness
2340
01:28:17,760 --> 01:28:20,320
business." And his gym was doing $4,000
2341
01:28:20,320 --> 01:28:21,440
a month. They were losing money every
2342
01:28:21,440 --> 01:28:23,520
month. And he had a one-year-old and a
2343
01:28:23,520 --> 01:28:25,199
kid on the way or two-year-old and kid
2344
01:28:25,199 --> 01:28:28,400
on the way. Uh, and he's working a job 5
2345
01:28:28,400 --> 01:28:30,560
to nine, sorry, 9 to5 during the day and
2346
01:28:30,560 --> 01:28:32,639
then working at the gym 5 am to 9 and
2347
01:28:32,639 --> 01:28:36,159
then uh um 5:00 pm to 900 pm. So, he's
2348
01:28:36,159 --> 01:28:37,440
just literally working all hours. He's
2349
01:28:37,440 --> 01:28:41,440
awake. And so, I said, "Hey, man. Um,
2350
01:28:41,440 --> 01:28:44,560
if this thing that I'm going to show you
2351
01:28:44,560 --> 01:28:45,760
made you the amount of money that you
2352
01:28:45,760 --> 01:28:47,280
want, would you even do this fit online
2353
01:28:47,280 --> 01:28:48,560
fitness thing?" And he was like, "No, I
2354
01:28:48,560 --> 01:28:50,400
would quit it in a second." And so, the
2355
01:28:50,400 --> 01:28:52,080
thing is is like sometimes there's
2356
01:28:52,080 --> 01:28:53,440
nothing wrong with the model at all.
2357
01:28:53,440 --> 01:28:55,840
It's like you just need to like like
2358
01:28:55,840 --> 01:28:58,000
like sorry, when I say model, I mean
2359
01:28:58,000 --> 01:28:59,600
like, "Oh, I want to go from insurance
2360
01:28:59,600 --> 01:29:01,679
into into you know, wealth management. I
2361
01:29:01,679 --> 01:29:04,239
want to go from uh you know making
2362
01:29:04,239 --> 01:29:05,440
content to starting a social media
2363
01:29:05,440 --> 01:29:07,760
marketing agency. Changing the business
2364
01:29:07,760 --> 01:29:10,000
you're in is just a gigantic risk and
2365
01:29:10,000 --> 01:29:11,520
it's extremely likely that you'll just
2366
01:29:11,520 --> 01:29:12,960
plateau at the exact same spot you
2367
01:29:12,960 --> 01:29:14,719
currently are with your current skill
2368
01:29:14,719 --> 01:29:17,520
level. And so
2369
01:29:17,520 --> 01:29:18,800
if we could just get your current
2370
01:29:18,800 --> 01:29:19,920
business to make the amount of money you
2371
01:29:19,920 --> 01:29:21,840
want, would you would you like it more?
2372
01:29:21,840 --> 01:29:23,040
And a lot of times the answer to that
2373
01:29:23,040 --> 01:29:25,760
question is yes. And so let's solve
2374
01:29:25,760 --> 01:29:28,159
that. Right? And so, um, I gave the
2375
01:29:28,159 --> 01:29:30,000
example earlier about like $1 million,
2376
01:29:30,000 --> 01:29:33,120
$10 million, $100 million, like there
2377
01:29:33,120 --> 01:29:35,520
for sure will be limits to, uh, how big
2378
01:29:35,520 --> 01:29:37,520
one specific business. And I typically
2379
01:29:37,520 --> 01:29:39,120
use these local businesses as the
2380
01:29:39,120 --> 01:29:40,400
example because anything that's online
2381
01:29:40,400 --> 01:29:41,920
can pretty much just reach so much more.
2382
01:29:41,920 --> 01:29:43,679
There's more complexity. There's more
2383
01:29:43,679 --> 01:29:44,800
there's more skills that you have to
2384
01:29:44,800 --> 01:29:47,040
learn, but proportionally, you also just
2385
01:29:47,040 --> 01:29:48,320
you can just you have the whole
2386
01:29:48,320 --> 01:29:49,440
internet. You have the whole world,
2387
01:29:49,440 --> 01:29:51,440
right? Um, but if you build a
2388
01:29:51,440 --> 01:29:53,360
restaurant, you will not be able to make
2389
01:29:53,360 --> 01:29:55,520
as much money as if you have a global AI
2390
01:29:55,520 --> 01:29:57,120
company. you're just not, right? If
2391
01:29:57,120 --> 01:29:57,840
you're like, well, I want to be a
2392
01:29:57,840 --> 01:29:58,800
trillionaire, a restaurant's not going
2393
01:29:58,800 --> 01:29:59,760
to be the path. And so, in that
2394
01:29:59,760 --> 01:30:01,600
instance, you should probably, if you're
2395
01:30:01,600 --> 01:30:03,120
like, I will do like, if I don't do
2396
01:30:03,120 --> 01:30:05,199
this, I will be really sad and and die,
2397
01:30:05,199 --> 01:30:07,040
then might as well just not be really
2398
01:30:07,040 --> 01:30:08,320
sad and die and just be really happy and
2399
01:30:08,320 --> 01:30:12,320
then die. right now. Um, that being
2400
01:30:12,320 --> 01:30:14,080
said, there's a really good perspective
2401
01:30:14,080 --> 01:30:16,320
on this that I'd like to offer for some
2402
01:30:16,320 --> 01:30:19,639
of you guys,
2403
01:30:19,920 --> 01:30:22,719
which is that sometimes the reason the
2404
01:30:22,719 --> 01:30:24,880
business you have can't grow is because
2405
01:30:24,880 --> 01:30:26,639
you built it wrong. But there's nothing
2406
01:30:26,639 --> 01:30:28,320
inherently wrong with like the industry
2407
01:30:28,320 --> 01:30:33,320
that you're in, per se. And so,
2408
01:30:33,520 --> 01:30:36,080
we do this little exercise. Uh, it's
2409
01:30:36,080 --> 01:30:37,920
like this pasta exercise. Basically, you
2410
01:30:37,920 --> 01:30:39,679
build a building as fast as you can. I
2411
01:30:39,679 --> 01:30:41,520
think you got 10 minutes, whatever. And
2412
01:30:41,520 --> 01:30:42,719
so once you finish building the
2413
01:30:42,719 --> 01:30:44,000
building, everybody kind of teams up and
2414
01:30:44,000 --> 01:30:45,360
then they they have, you know, different
2415
01:30:45,360 --> 01:30:47,040
level things, right? Different level
2416
01:30:47,040 --> 01:30:49,199
pasta towers. And so once they build the
2417
01:30:49,199 --> 01:30:51,040
pasta towers, the next natural question
2418
01:30:51,040 --> 01:30:52,960
is, okay, if you'd had a full day, would
2419
01:30:52,960 --> 01:30:54,080
you build it differently? And the answer
2420
01:30:54,080 --> 01:30:56,000
is usually yes. If you had a full day,
2421
01:30:56,000 --> 01:30:57,040
do you think you could build a build a
2422
01:30:57,040 --> 01:30:59,440
bigger building? The answer is yes. Now
2423
01:30:59,440 --> 01:31:01,600
you have your 10 minute 10-minute tall
2424
01:31:01,600 --> 01:31:04,639
tower. If I need you to triple it, could
2425
01:31:04,639 --> 01:31:07,760
you? And the answer is usually no.
2426
01:31:07,760 --> 01:31:10,320
Because when you build things
2427
01:31:10,320 --> 01:31:12,800
fast in the beginning, it doesn't mean
2428
01:31:12,800 --> 01:31:15,760
you built them for scale. And so you
2429
01:31:15,760 --> 01:31:16,960
have to build things differently. You
2430
01:31:16,960 --> 01:31:18,320
have to just like if you want to have a
2431
01:31:18,320 --> 01:31:20,239
hundredstory building, you have to drill
2432
01:31:20,239 --> 01:31:22,480
down stories to build the foundation,
2433
01:31:22,480 --> 01:31:24,000
right? So like the deeper the foundation
2434
01:31:24,000 --> 01:31:26,000
is, the higher the the building can go.
2435
01:31:26,000 --> 01:31:27,679
But if you compared a a two-story house
2436
01:31:27,679 --> 01:31:29,679
to a 100 store building, you would get
2437
01:31:29,679 --> 01:31:31,360
two stories above the ground before they
2438
01:31:31,360 --> 01:31:32,800
even finish the foundation when they're
2439
01:31:32,800 --> 01:31:34,880
down five stories right in the big
2440
01:31:34,880 --> 01:31:37,280
building. But the thing is is that in
2441
01:31:37,280 --> 01:31:38,880
the beginning, this guy out the gate is
2442
01:31:38,880 --> 01:31:40,480
bragging to the guy who's down in the
2443
01:31:40,480 --> 01:31:42,639
pit going negative to try and build the
2444
01:31:42,639 --> 01:31:43,760
foundation for this business, saying
2445
01:31:43,760 --> 01:31:45,440
like look how much faster I grew. But
2446
01:31:45,440 --> 01:31:47,600
then this guy just blows past them. And
2447
01:31:47,600 --> 01:31:49,760
so it it doesn't take into account how
2448
01:31:49,760 --> 01:31:51,120
much time it takes to build something
2449
01:31:51,120 --> 01:31:52,960
big. Because the fastest way, and you'll
2450
01:31:52,960 --> 01:31:55,040
write this down, the fastest way to get
2451
01:31:55,040 --> 01:31:57,040
to $10 million a year is not the fastest
2452
01:31:57,040 --> 01:31:59,360
way to get to a hundred.
2453
01:31:59,360 --> 01:32:01,280
Like this is why like I kept I hit this
2454
01:32:01,280 --> 01:32:03,679
wall with gym launch at 30 to $40
2455
01:32:03,679 --> 01:32:05,760
million a year. Like I built I didn't
2456
01:32:05,760 --> 01:32:07,360
build it to get to 100. I just built it
2457
01:32:07,360 --> 01:32:09,280
to not be poor. Like that was you know
2458
01:32:09,280 --> 01:32:10,639
what I mean? Like that like it was just
2459
01:32:10,639 --> 01:32:12,960
like oh this worked for me, right? Um
2460
01:32:12,960 --> 01:32:14,719
but I wasn't like strategic about how I
2461
01:32:14,719 --> 01:32:16,719
was building it. And if I said oh I have
2462
01:32:16,719 --> 01:32:18,159
to build this thing into a $100 million
2463
01:32:18,159 --> 01:32:19,440
business, I would have built it
2464
01:32:19,440 --> 01:32:20,880
differently. But I didn't know that when
2465
01:32:20,880 --> 01:32:24,040
I started.
2466
01:32:24,800 --> 01:32:27,920
And so to take the the absolute extreme
2467
01:32:27,920 --> 01:32:29,440
example on this with the building
2468
01:32:29,440 --> 01:32:31,520
analogy, sorry, with the uh with the
2469
01:32:31,520 --> 01:32:32,639
restaurant analogy I had earlier,
2470
01:32:32,639 --> 01:32:34,719
restaurants versus AI. The man who owns
2471
01:32:34,719 --> 01:32:36,239
my building, Mr. Panda, as I refer to
2472
01:32:36,239 --> 01:32:38,000
him, he owns Panda Express. He owns all
2473
01:32:38,000 --> 01:32:40,560
2600 locations. He owns the real estate
2474
01:32:40,560 --> 01:32:42,320
in the dirt for many of them. And he's
2475
01:32:42,320 --> 01:32:44,320
been selling Kungpow chicken for 45
2476
01:32:44,320 --> 01:32:45,679
years.
2477
01:32:45,679 --> 01:32:47,280
Most people would look at that and said,
2478
01:32:47,280 --> 01:32:49,199
"Hey, I own a I own a Chinese, you know,
2479
01:32:49,199 --> 01:32:51,600
fast casual restaurant." Most people
2480
01:32:51,600 --> 01:32:53,679
would say, "I don't know if that's the
2481
01:32:53,679 --> 01:32:55,679
best opportunity vehicle." Well, if you
2482
01:32:55,679 --> 01:32:58,080
do anything long enough, you get pretty
2483
01:32:58,080 --> 01:33:00,080
good. And he's gotten pretty darn good.
2484
01:33:00,080 --> 01:33:01,920
One of the best in the world at Kungpow
2485
01:33:01,920 --> 01:33:04,880
and General S's chicken, right? Little
2486
01:33:04,880 --> 01:33:06,639
uh little What's the one? Steak and
2487
01:33:06,639 --> 01:33:10,480
broccoli, right? Um little spicy spicy
2488
01:33:10,480 --> 01:33:12,719
pineapple. Anyways, uh I think it's
2489
01:33:12,719 --> 01:33:14,000
called Sweet Fire. Anyway, they've got
2490
01:33:14,000 --> 01:33:15,520
some good stuff. But the point is this
2491
01:33:15,520 --> 01:33:17,840
is that most of the times you can reach
2492
01:33:17,840 --> 01:33:19,360
the goals you have if you just expand
2493
01:33:19,360 --> 01:33:21,679
the timeline. And people wildly
2494
01:33:21,679 --> 01:33:23,199
underestimate the value of consistently
2495
01:33:23,199 --> 01:33:24,480
making progress towards a goal by
2496
01:33:24,480 --> 01:33:26,159
building the correct foundation. That is
2497
01:33:26,159 --> 01:33:27,360
the point I'm trying to make is that
2498
01:33:27,360 --> 01:33:28,719
your business might not have anything
2499
01:33:28,719 --> 01:33:30,000
flawed except for your timelines and
2500
01:33:30,000 --> 01:33:31,760
your expectations.
2501
01:33:31,760 --> 01:33:33,040
Because most of us aren't trying to
2502
01:33:33,040 --> 01:33:34,400
build the next trillion dollar AI
2503
01:33:34,400 --> 01:33:36,320
company. Most of us would be okay with a
2504
01:33:36,320 --> 01:33:38,080
$10 million business or a $100 million
2505
01:33:38,080 --> 01:33:40,239
business. Most people. And if that is
2506
01:33:40,239 --> 01:33:41,600
you, then all the things that I'm going
2507
01:33:41,600 --> 01:33:42,880
to share would apply to you and work for
2508
01:33:42,880 --> 01:33:43,760
you. You just need to change the
2509
01:33:43,760 --> 01:33:45,280
expectations around it. You can have
2510
01:33:45,280 --> 01:33:47,600
arguably the the hardest business to
2511
01:33:47,600 --> 01:33:50,480
scale, a brick-and-mortar restaurant,
2512
01:33:50,480 --> 01:33:52,000
and still become a decad billionaire
2513
01:33:52,000 --> 01:33:54,159
like Mr. Panda.
2514
01:33:54,159 --> 01:33:57,920
It just took him 45 years.
2515
01:33:57,920 --> 01:33:59,920
And so, how do you do something like
2516
01:33:59,920 --> 01:34:01,280
this? Like, how do you actually take
2517
01:34:01,280 --> 01:34:02,960
that little restaurant and build it into
2518
01:34:02,960 --> 01:34:05,520
Mr. Panda? Right? So, this is an
2519
01:34:05,520 --> 01:34:07,520
exercise that I do uh with some of the
2520
01:34:07,520 --> 01:34:08,800
folks that that that have come out in
2521
01:34:08,800 --> 01:34:10,480
person, but I like I like envisioning it
2522
01:34:10,480 --> 01:34:12,320
like this. So, let's say you've got
2523
01:34:12,320 --> 01:34:14,880
company A and then you've got company B.
2524
01:34:14,880 --> 01:34:17,840
Okay? And let's say year one, company A
2525
01:34:17,840 --> 01:34:20,400
sells 100 customers. Okay? But then they
2526
01:34:20,400 --> 01:34:23,120
lose 100 customers.
2527
01:34:23,120 --> 01:34:25,760
Year two, they sell 200 customers and
2528
01:34:25,760 --> 01:34:29,719
then they lose 200 customers.
2529
01:34:31,440 --> 01:34:33,040
Okay,
2530
01:34:33,040 --> 01:34:34,480
this should say year one, but you get
2531
01:34:34,480 --> 01:34:36,960
the idea. Okay, then year three, we've
2532
01:34:36,960 --> 01:34:39,199
got 300 customers and then they lose 300
2533
01:34:39,199 --> 01:34:40,800
customers.
2534
01:34:40,800 --> 01:34:42,880
So, if we were to look at this company,
2535
01:34:42,880 --> 01:34:44,400
we' be like, "Oh man, they're, you know,
2536
01:34:44,400 --> 01:34:46,560
they tripled in that same period of
2537
01:34:46,560 --> 01:34:49,040
time. Not bad." Now, company B, let's
2538
01:34:49,040 --> 01:34:51,199
say they sell 100 customers year one,
2539
01:34:51,199 --> 01:34:54,000
but then they lose zero. And then year
2540
01:34:54,000 --> 01:34:56,320
two,
2541
01:34:56,320 --> 01:34:59,120
they sell a 100 again, but then they
2542
01:34:59,120 --> 01:35:01,040
lose zero. But they still have the other
2543
01:35:01,040 --> 01:35:04,000
hundred from year one. So add this
2544
01:35:04,000 --> 01:35:06,320
together, right? They lose zero. So now
2545
01:35:06,320 --> 01:35:08,800
they have 200 customers. And then year
2546
01:35:08,800 --> 01:35:10,320
three,
2547
01:35:10,320 --> 01:35:13,920
they sell 100 again.
2548
01:35:13,920 --> 01:35:16,320
We add these together, they lose zero
2549
01:35:16,320 --> 01:35:19,040
again, and now they have 300 customers.
2550
01:35:19,040 --> 01:35:22,000
So both of these businesses have 300
2551
01:35:22,000 --> 01:35:25,360
customers. sold in revenue that year.
2552
01:35:25,360 --> 01:35:26,800
But which business would you rather
2553
01:35:26,800 --> 01:35:28,480
have?
2554
01:35:28,480 --> 01:35:31,280
Obviously, this one, this lower one, the
2555
01:35:31,280 --> 01:35:32,800
one that doesn't lose customers and has
2556
01:35:32,800 --> 01:35:34,880
lower sales velocity, sold us third as
2557
01:35:34,880 --> 01:35:37,040
many customers as the other one did.
2558
01:35:37,040 --> 01:35:38,239
Many of you are trying to build your
2559
01:35:38,239 --> 01:35:40,159
business like this, which is if I just
2560
01:35:40,159 --> 01:35:42,400
learn how to market better, I'll make
2561
01:35:42,400 --> 01:35:43,920
more money. And the answer is what I
2562
01:35:43,920 --> 01:35:45,600
originally said. If you just learn how
2563
01:35:45,600 --> 01:35:47,040
to market and sell, you can for sure
2564
01:35:47,040 --> 01:35:48,239
make money. You can for sure feed
2565
01:35:48,239 --> 01:35:49,520
yourself. You can become independently
2566
01:35:49,520 --> 01:35:51,520
wealthy. You can. you're just not going
2567
01:35:51,520 --> 01:35:54,480
to build big stuff.
2568
01:35:54,480 --> 01:35:56,000
I'm just being real. This took me a long
2569
01:35:56,000 --> 01:35:57,280
time to learn as somebody who's pretty
2570
01:35:57,280 --> 01:35:59,600
good at marketing and sales. All right?
2571
01:35:59,600 --> 01:36:01,520
Instead, we have to ask the question,
2572
01:36:01,520 --> 01:36:02,400
how do we build something that
2573
01:36:02,400 --> 01:36:04,239
compounds? Right? And one of the key
2574
01:36:04,239 --> 01:36:05,760
ways of compounding is reputation and
2575
01:36:05,760 --> 01:36:07,760
not losing customers,
2576
01:36:07,760 --> 01:36:10,800
right? And so here we have our get 100,
2577
01:36:10,800 --> 01:36:12,400
lose none. Get a 100, lose none, now we
2578
01:36:12,400 --> 01:36:14,000
have 200. Get 100, lose none, now we
2579
01:36:14,000 --> 01:36:16,560
have 300. And this company, this 300,
2580
01:36:16,560 --> 01:36:18,320
both these make the same revenue. This
2581
01:36:18,320 --> 01:36:19,840
one, not only is it a better business to
2582
01:36:19,840 --> 01:36:21,120
own because if you didn't sell any
2583
01:36:21,120 --> 01:36:22,080
customers for the rest of your life,
2584
01:36:22,080 --> 01:36:24,400
you'd still make money. Great. But the
2585
01:36:24,400 --> 01:36:27,120
other portion of this is that this one's
2586
01:36:27,120 --> 01:36:29,280
significantly more profitable because I
2587
01:36:29,280 --> 01:36:31,040
can promise you to acquire the first 100
2588
01:36:31,040 --> 01:36:32,639
customers compared to acquiring 300
2589
01:36:32,639 --> 01:36:34,960
customers is going to cost less. But not
2590
01:36:34,960 --> 01:36:37,520
only that, this business needed to
2591
01:36:37,520 --> 01:36:40,639
acquire 600 customers over that same
2592
01:36:40,639 --> 01:36:42,320
three-year period. So they had to
2593
01:36:42,320 --> 01:36:44,239
acquire twice as many customers. And
2594
01:36:44,239 --> 01:36:46,080
that additional cost of customers is
2595
01:36:46,080 --> 01:36:49,679
just scooped out of the bottom line.
2596
01:36:49,679 --> 01:36:52,239
And these incremental 300 are just
2597
01:36:52,239 --> 01:36:54,080
dropping probably disproportionately to
2598
01:36:54,080 --> 01:36:55,199
the bottom line because the cost of
2599
01:36:55,199 --> 01:36:56,639
delivery on existing customers is almost
2600
01:36:56,639 --> 01:36:58,719
always significantly lower. And this one
2601
01:36:58,719 --> 01:36:59,920
because they probably do a good job
2602
01:36:59,920 --> 01:37:01,040
probably has a decent amount of these
2603
01:37:01,040 --> 01:37:02,239
hundred that are probably word of mouth
2604
01:37:02,239 --> 01:37:04,080
or free. And so maybe their cost to
2605
01:37:04,080 --> 01:37:06,000
acquire might be only 50 of these
2606
01:37:06,000 --> 01:37:08,239
hundred or 25 of these hundred. And so
2607
01:37:08,239 --> 01:37:10,960
now we're comparing 300 uh customers
2608
01:37:10,960 --> 01:37:13,199
that have to get paid to acquire versus
2609
01:37:13,199 --> 01:37:15,440
maybe 25
2610
01:37:15,440 --> 01:37:17,679
a tenth and all of that extra drops
2611
01:37:17,679 --> 01:37:19,280
straight to the bottom line. This is how
2612
01:37:19,280 --> 01:37:20,400
you can really build a compounding
2613
01:37:20,400 --> 01:37:22,480
vehicle. This is how when Mr. Panda gets
2614
01:37:22,480 --> 01:37:23,679
interviewed on the rarity videos he
2615
01:37:23,679 --> 01:37:25,600
does. He says your customers absolutely
2616
01:37:25,600 --> 01:37:28,800
love your product. And if they do then
2617
01:37:28,800 --> 01:37:31,119
they will come back and buy again.
2618
01:37:31,119 --> 01:37:34,080
So we covered more. We covered metrics.
2619
01:37:34,080 --> 01:37:35,600
We covered market. We covered model. All
2620
01:37:35,600 --> 01:37:36,960
right. Why can't we do more? because I
2621
01:37:36,960 --> 01:37:38,320
don't have the numbers, because my
2622
01:37:38,320 --> 01:37:39,760
market's too small, because I'm not sure
2623
01:37:39,760 --> 01:37:42,560
if it's worth it. Okay, now we get into
2624
01:37:42,560 --> 01:37:45,360
the tactical We can't market more
2625
01:37:45,360 --> 01:37:47,440
because we don't have the money, right?
2626
01:37:47,440 --> 01:37:50,480
We can't afford to. All right, fair
2627
01:37:50,480 --> 01:37:52,880
enough. So, let me actually write these.
2628
01:37:52,880 --> 01:37:54,320
Actually, I brought this over here so
2629
01:37:54,320 --> 01:37:55,760
that we could keep track of it. So,
2630
01:37:55,760 --> 01:37:58,960
we've got more,
2631
01:37:58,960 --> 01:38:02,360
we've got metrics,
2632
01:38:10,880 --> 01:38:12,639
Now, this one's got four kind of like
2633
01:38:12,639 --> 01:38:14,639
subportions here. So, I'm gonna I'm
2634
01:38:14,639 --> 01:38:17,119
gonna make this look hopefully it'll
2635
01:38:17,119 --> 01:38:19,280
make sense. Okay.
2636
01:38:19,280 --> 01:38:22,080
All right. Is it because leads cost too
2637
01:38:22,080 --> 01:38:23,840
much?
2638
01:38:23,840 --> 01:38:24,800
In which case, we need better
2639
01:38:24,800 --> 01:38:26,639
advertising. But how do you know it's
2640
01:38:26,639 --> 01:38:27,920
that leads cost too much or that you
2641
01:38:27,920 --> 01:38:29,199
don't make enough from them? We'll get
2642
01:38:29,199 --> 01:38:31,199
to that in a second. But when I'm asking
2643
01:38:31,199 --> 01:38:32,159
the questions of like trying to
2644
01:38:32,159 --> 01:38:33,360
deconstrain the business, I'm running
2645
01:38:33,360 --> 01:38:34,480
through this. I'm like, "Why can't you
2646
01:38:34,480 --> 01:38:36,000
do more? I don't have my metrics. Go do
2647
01:38:36,000 --> 01:38:37,679
that. Call me later." Okay. Uh, my
2648
01:38:37,679 --> 01:38:38,719
market is too small. Is it really too
2649
01:38:38,719 --> 01:38:39,840
small? Is it actually too small? Oh,
2650
01:38:39,840 --> 01:38:41,199
you're just need to reframe. Okay, cool.
2651
01:38:41,199 --> 01:38:42,800
Let's keep going. Great. Your model.
2652
01:38:42,800 --> 01:38:43,840
Well, have you expanded your time
2653
01:38:43,840 --> 01:38:45,040
horizon? Is there another version of the
2654
01:38:45,040 --> 01:38:46,880
business that looks like yours that is
2655
01:38:46,880 --> 01:38:48,400
20 times as big? Yes. Okay, then it's
2656
01:38:48,400 --> 01:38:49,920
your mindset. It's not the model. Great.
2657
01:38:49,920 --> 01:38:51,760
Okay, now we're into the money stuff.
2658
01:38:51,760 --> 01:38:53,440
So, is it because your leads cost too
2659
01:38:53,440 --> 01:38:55,119
much or you don't make enough from them?
2660
01:38:55,119 --> 01:38:56,560
If the leads cost too much, you need
2661
01:38:56,560 --> 01:38:58,960
better advertising, right? Or do you
2662
01:38:58,960 --> 01:39:00,800
close too few of them, which would mean
2663
01:39:00,800 --> 01:39:04,080
that you need better sales?
2664
01:39:04,080 --> 01:39:05,760
or do you not make enough per customer
2665
01:39:05,760 --> 01:39:07,119
which means you increase lifetime gross
2666
01:39:07,119 --> 01:39:08,880
profit
2667
01:39:08,880 --> 01:39:11,040
or you make enough but you make it too
2668
01:39:11,040 --> 01:39:14,320
slowly. That's a cash flow issue.
2669
01:39:14,320 --> 01:39:16,960
So you'll also notice hopefully that
2670
01:39:16,960 --> 01:39:19,840
these correspond to leads, the lead
2671
01:39:19,840 --> 01:39:21,360
systems, right? Maybe you guys can point
2672
01:39:21,360 --> 01:39:24,159
over here. Um ads, hooks, branding,
2673
01:39:24,159 --> 01:39:25,760
marketing machine. All of this is to
2674
01:39:25,760 --> 01:39:27,119
help with people who need better
2675
01:39:27,119 --> 01:39:29,840
advertising. You need cheaper leads. If
2676
01:39:29,840 --> 01:39:31,040
you're like, you know, it's a it's a
2677
01:39:31,040 --> 01:39:32,400
sales issue. It's like, okay, we need to
2678
01:39:32,400 --> 01:39:33,600
nurture better. We need to close better.
2679
01:39:33,600 --> 01:39:34,960
We need to add more proof into our
2680
01:39:34,960 --> 01:39:37,440
process. If it's delivery, then it's
2681
01:39:37,440 --> 01:39:38,880
like, okay, that means we have to
2682
01:39:38,880 --> 01:39:40,159
increase lifetime gross profit per
2683
01:39:40,159 --> 01:39:41,440
person, right? Which is why we have
2684
01:39:41,440 --> 01:39:43,679
these playbooks. If it's, oh, I need to
2685
01:39:43,679 --> 01:39:45,600
accelerate profit or cash flow in the
2686
01:39:45,600 --> 01:39:48,320
business, then we have uh the the profit
2687
01:39:48,320 --> 01:39:51,600
playbooks. Okay? So, the question now
2688
01:39:51,600 --> 01:39:53,360
comes down to, and to be fair for
2689
01:39:53,360 --> 01:39:54,719
everybody who's watching this, I bet you
2690
01:39:54,719 --> 01:39:56,800
80% of you are in this bucket, but I
2691
01:39:56,800 --> 01:39:58,639
have to still cover these. actually
2692
01:39:58,639 --> 01:40:01,679
probably 30% of you maybe 30 30ish% are
2693
01:40:01,679 --> 01:40:03,440
probably here probably got like 10 to
2694
01:40:03,440 --> 01:40:05,600
15ish here and then this is probably the
2695
01:40:05,600 --> 01:40:07,920
rest or many many of the rest of you
2696
01:40:07,920 --> 01:40:11,360
there's still one more after this but
2697
01:40:11,360 --> 01:40:12,960
I made all those numbers up but that's a
2698
01:40:12,960 --> 01:40:15,360
rough estimation okay
2699
01:40:15,360 --> 01:40:18,239
so the way to know is that you start
2700
01:40:18,239 --> 01:40:20,480
with CAC all right so CAC cost you a
2701
01:40:20,480 --> 01:40:22,639
customer is it around the industry
2702
01:40:22,639 --> 01:40:25,040
average and so I I'll give you an an
2703
01:40:25,040 --> 01:40:27,040
observation that I had from Allen uh
2704
01:40:27,040 --> 01:40:29,760
which is our software company um across
2705
01:40:29,760 --> 01:40:32,400
different agencies. And so two
2706
01:40:32,400 --> 01:40:34,960
interesting tidbits. One is that the
2707
01:40:34,960 --> 01:40:36,320
cost to acquire customers between
2708
01:40:36,320 --> 01:40:37,440
different agencies with different
2709
01:40:37,440 --> 01:40:40,080
methods honestly typically pretty
2710
01:40:40,080 --> 01:40:41,840
similar, right? I mean maybe within one
2711
01:40:41,840 --> 01:40:44,480
or two of each other, but like not a 10x
2712
01:40:44,480 --> 01:40:45,760
difference, right? Unless you have a
2713
01:40:45,760 --> 01:40:47,360
brand, but for anybody who just had like
2714
01:40:47,360 --> 01:40:48,320
didn't have a brand, it was just
2715
01:40:48,320 --> 01:40:49,600
generically acquire customers via
2716
01:40:49,600 --> 01:40:51,920
outreach or via, you know, paid ads or
2717
01:40:51,920 --> 01:40:54,320
something like that, like that like
2718
01:40:54,320 --> 01:40:55,600
their cost to acquire customer was not
2719
01:40:55,600 --> 01:40:56,719
that different. And it was cool for me
2720
01:40:56,719 --> 01:40:57,760
to see and I was like, "Wow, it was
2721
01:40:57,760 --> 01:40:58,880
actually a big relief breaker." So I'll
2722
01:40:58,880 --> 01:41:00,480
hopefully try and translate that to you.
2723
01:41:00,480 --> 01:41:02,239
So
2724
01:41:02,239 --> 01:41:04,480
how far off industry average are we?
2725
01:41:04,480 --> 01:41:06,000
Because the difference between the the
2726
01:41:06,000 --> 01:41:07,840
the the agencies that were doing, you
2727
01:41:07,840 --> 01:41:10,159
know, 20x another agency was typically
2728
01:41:10,159 --> 01:41:13,280
never their CAC. It was typically other
2729
01:41:13,280 --> 01:41:15,440
stuff. Meaning they kept their customers
2730
01:41:15,440 --> 01:41:17,440
longer. Their lifetime value stacked.
2731
01:41:17,440 --> 01:41:19,840
They had a better model so people didn't
2732
01:41:19,840 --> 01:41:23,080
churn out.
2733
01:41:24,000 --> 01:41:26,159
All right.
2734
01:41:26,159 --> 01:41:30,000
And so if CAC is industry average, so we
2735
01:41:30,000 --> 01:41:33,119
start there, start with CAC
2736
01:41:33,119 --> 01:41:35,679
and you can't afford leads. So if you're
2737
01:41:35,679 --> 01:41:37,920
average and you can't afford leads, you
2738
01:41:37,920 --> 01:41:39,679
have an LTV problem, right? So if it
2739
01:41:39,679 --> 01:41:40,880
cost you the same amount as everybody
2740
01:41:40,880 --> 01:41:42,960
else, but you can't afford to do it,
2741
01:41:42,960 --> 01:41:44,159
it's because they make more money than
2742
01:41:44,159 --> 01:41:45,440
you. So they can bid you out of the
2743
01:41:45,440 --> 01:41:48,880
marketplace. So if CAC average and
2744
01:41:48,880 --> 01:41:51,119
you're not making money, your LTV is too
2745
01:41:51,119 --> 01:41:52,719
low. Hopefully this answers the question
2746
01:41:52,719 --> 01:41:54,960
for some of you guys. That might be your
2747
01:41:54,960 --> 01:41:56,080
issue. I'm going to give you tacticals
2748
01:41:56,080 --> 01:41:57,280
on how to solve it in a second, but
2749
01:41:57,280 --> 01:42:00,639
that's how it works. Okay, so you don't
2750
01:42:00,639 --> 01:42:02,480
make enough on customers. We'll solve
2751
01:42:02,480 --> 01:42:03,679
this in a second, but I want you to at
2752
01:42:03,679 --> 01:42:05,760
least know which which constraint you're
2753
01:42:05,760 --> 01:42:09,760
dealing with. Now, if CAC is average and
2754
01:42:09,760 --> 01:42:12,880
profit is good, but you can't spend more
2755
01:42:12,880 --> 01:42:15,760
because of cash flow, meaning this is
2756
01:42:15,760 --> 01:42:17,199
super common in like home services where
2757
01:42:17,199 --> 01:42:18,800
it's like, oh, we get paid on net 90.
2758
01:42:18,800 --> 01:42:20,800
So, it's like our profit is good. It's
2759
01:42:20,800 --> 01:42:22,080
just that we have to wait for the the
2760
01:42:22,080 --> 01:42:24,000
cash to come in. So, we have we're cash
2761
01:42:24,000 --> 01:42:25,360
flow constrained even though we have
2762
01:42:25,360 --> 01:42:27,520
profit as a business. All right? We get
2763
01:42:27,520 --> 01:42:29,920
paid net 90 or we get, you know, $100 a
2764
01:42:29,920 --> 01:42:31,760
month for years, but it cost us $1,000
2765
01:42:31,760 --> 01:42:33,199
to get a customer. That's a cash flow
2766
01:42:33,199 --> 01:42:34,239
constraint. This is super common with
2767
01:42:34,239 --> 01:42:37,040
software companies, too, right? So, you
2768
01:42:37,040 --> 01:42:39,760
make a profit, but it's too slow. So,
2769
01:42:39,760 --> 01:42:42,560
the solutions are we need to accelerate
2770
01:42:42,560 --> 01:42:43,440
cash flow. And I'll show you how to do
2771
01:42:43,440 --> 01:42:44,400
that in a second. All right. I just want
2772
01:42:44,400 --> 01:42:45,360
to make sure that we're picking the
2773
01:42:45,360 --> 01:42:48,639
right problem.
2774
01:42:48,639 --> 01:42:52,639
So the next is CAC is too high.
2775
01:42:52,639 --> 01:42:54,480
So if CAC is too high, it's one of two
2776
01:42:54,480 --> 01:42:55,360
different problems because they're
2777
01:42:55,360 --> 01:42:57,199
multiplicative. All right? So it's
2778
01:42:57,199 --> 01:42:59,920
either your sales your leads cost too
2779
01:42:59,920 --> 01:43:05,280
much or your sales sucks or both. So if
2780
01:43:05,280 --> 01:43:06,800
CAC is too high, it cost you too much to
2781
01:43:06,800 --> 01:43:08,239
get customers. Either your advertising
2782
01:43:08,239 --> 01:43:11,840
blows or you suck at sales or both.
2783
01:43:11,840 --> 01:43:13,520
Okay?
2784
01:43:13,520 --> 01:43:15,679
So improvements to either of those
2785
01:43:15,679 --> 01:43:17,360
because they're multiplicative could
2786
01:43:17,360 --> 01:43:19,520
solve the problem. But we want to work
2787
01:43:19,520 --> 01:43:21,440
on the one with the weakest link, aka
2788
01:43:21,440 --> 01:43:24,239
the biggest bang for the buck. And so
2789
01:43:24,239 --> 01:43:25,440
let's say we're looking at this. Let's
2790
01:43:25,440 --> 01:43:27,520
say you're closing 25% of sales, you
2791
01:43:27,520 --> 01:43:29,840
know, 25% of conversations. You've got a
2792
01:43:29,840 --> 01:43:33,679
very low opt-in rate. Well, likely the
2793
01:43:33,679 --> 01:43:35,600
opt-in rate would be the constraint,
2794
01:43:35,600 --> 01:43:38,320
which would mean leads are costing too
2795
01:43:38,320 --> 01:43:40,000
much. So we can fix that one with better
2796
01:43:40,000 --> 01:43:42,400
advertising, conversion optimization,
2797
01:43:42,400 --> 01:43:43,440
etc.
2798
01:43:43,440 --> 01:43:44,880
Now, let's say that our sales you're
2799
01:43:44,880 --> 01:43:46,400
closing 5% of people get on the phone
2800
01:43:46,400 --> 01:43:48,480
with. Well, then you probably have a
2801
01:43:48,480 --> 01:43:51,280
sales issue, not necessarily a leads
2802
01:43:51,280 --> 01:43:53,119
issue.
2803
01:43:53,119 --> 01:43:54,719
And so, then you're closing too few. So,
2804
01:43:54,719 --> 01:43:57,119
you would be this one, number two. And
2805
01:43:57,119 --> 01:43:59,360
so, I I I walk through these so that you
2806
01:43:59,360 --> 01:44:01,360
can get is it a leads issue, is it a
2807
01:44:01,360 --> 01:44:03,679
sales issue, is it an LTV issue, or is
2808
01:44:03,679 --> 01:44:07,679
it a uh cash flow profit issue?
2809
01:44:07,679 --> 01:44:09,440
And so this is where pattern matching
2810
01:44:09,440 --> 01:44:11,360
transparently becomes valuable because
2811
01:44:11,360 --> 01:44:12,480
like this is the difference between me
2812
01:44:12,480 --> 01:44:13,840
like just saying this one to many to you
2813
01:44:13,840 --> 01:44:15,280
guys versus me being on the phone or you
2814
01:44:15,280 --> 01:44:16,480
know me talking to you in person or
2815
01:44:16,480 --> 01:44:17,840
answering the question you know in the
2816
01:44:17,840 --> 01:44:20,960
scale advisory group is that like that's
2817
01:44:20,960 --> 01:44:22,400
where pattern matching is important.
2818
01:44:22,400 --> 01:44:23,920
Like I could be like well I know
2819
01:44:23,920 --> 01:44:25,440
plumbing should never cost more than
2820
01:44:25,440 --> 01:44:27,840
this so you're missing all of it here
2821
01:44:27,840 --> 01:44:29,600
right like I can just tell that quickly.
2822
01:44:29,600 --> 01:44:31,040
Um but this at least should give you the
2823
01:44:31,040 --> 01:44:32,320
decision-making variables of how to
2824
01:44:32,320 --> 01:44:34,639
think through it. All right. Now, if
2825
01:44:34,639 --> 01:44:36,000
you're like, "Okay, Alex, well, I
2826
01:44:36,000 --> 01:44:37,440
understand where my specific constraint
2827
01:44:37,440 --> 01:44:40,159
is. Um, then we have these four
2828
01:44:40,159 --> 01:44:41,760
potentialities. Lead, sales, profit,
2829
01:44:41,760 --> 01:44:43,360
cash flow." Okay. And by profit, it's
2830
01:44:43,360 --> 01:44:44,800
LTV, but I named it profit for this
2831
01:44:44,800 --> 01:44:45,840
because you're not making enough per
2832
01:44:45,840 --> 01:44:48,719
customer. Um, let's actually solve them.
2833
01:44:48,719 --> 01:44:51,040
Okay? So, let's say that we we have CAC
2834
01:44:51,040 --> 01:44:53,760
is too high because our sales are fine,
2835
01:44:53,760 --> 01:44:55,760
but leads is the constraint, right? So,
2836
01:44:55,760 --> 01:44:56,960
you close sales, but you can't get
2837
01:44:56,960 --> 01:44:59,920
enough leads. So, how do we solve this?
2838
01:44:59,920 --> 01:45:02,639
So, you need better ads. And remember
2839
01:45:02,639 --> 01:45:04,320
the the multiple paths up the mountain.
2840
01:45:04,320 --> 01:45:05,920
This is an exact example of multiple
2841
01:45:05,920 --> 01:45:07,520
paths up the mountain. What I'm about to
2842
01:45:07,520 --> 01:45:09,600
go through. See if I can find my
2843
01:45:09,600 --> 01:45:11,920
multiple paths up the mountain. I think
2844
01:45:11,920 --> 01:45:14,560
this is it. Well, that was my Everest
2845
01:45:14,560 --> 01:45:16,239
one. There's still multiple paths
2846
01:45:16,239 --> 01:45:18,000
though.
2847
01:45:18,000 --> 01:45:20,560
Is this it? Yeah, here we go.
2848
01:45:20,560 --> 01:45:22,400
Okay, this is actually this exact
2849
01:45:22,400 --> 01:45:24,320
example, right? So leads is what we need
2850
01:45:24,320 --> 01:45:27,760
to solve. And so we can have better ads,
2851
01:45:27,760 --> 01:45:29,119
right? Which we would do with the go to
2852
01:45:29,119 --> 01:45:32,080
ads playbook. Or for those of you who
2853
01:45:32,080 --> 01:45:33,360
picked up the ads handbook, you can have
2854
01:45:33,360 --> 01:45:35,280
that too, right? Hooks would also
2855
01:45:35,280 --> 01:45:37,600
improve this as well. You can make
2856
01:45:37,600 --> 01:45:39,760
better content using hooks and branding.
2857
01:45:39,760 --> 01:45:40,880
You could do that too. That would
2858
01:45:40,880 --> 01:45:42,480
cheapen the amount of leads you get. If
2859
01:45:42,480 --> 01:45:43,840
if you're currently not making content,
2860
01:45:43,840 --> 01:45:44,960
you started making content, you'd get
2861
01:45:44,960 --> 01:45:46,159
cheaper leads, especially if you're
2862
01:45:46,159 --> 01:45:48,159
already running ads. Uh better
2863
01:45:48,159 --> 01:45:49,199
messaging. So this would be the
2864
01:45:49,199 --> 01:45:50,639
branding, like what is contained inside
2865
01:45:50,639 --> 01:45:52,239
of the advertising. What are the
2866
01:45:52,239 --> 01:45:53,679
associations and the pairings that you
2867
01:45:53,679 --> 01:45:55,520
want to make?
2868
01:45:55,520 --> 01:45:57,119
You could improve the offer, which is
2869
01:45:57,119 --> 01:45:58,400
the offer, the entire premise of the
2870
01:45:58,400 --> 01:46:01,199
offer's book, right? You could add in a
2871
01:46:01,199 --> 01:46:02,239
money model mechanism. You could take
2872
01:46:02,239 --> 01:46:04,239
your existing offer and then make it a
2873
01:46:04,239 --> 01:46:05,760
giveaway. You could make it a win your
2874
01:46:05,760 --> 01:46:07,199
money back. You could make it a decoy
2875
01:46:07,199 --> 01:46:08,800
offer. You could make it a pay less now
2876
01:46:08,800 --> 01:46:10,560
or pay more later offer, right? You
2877
01:46:10,560 --> 01:46:12,320
could make any of those with your
2878
01:46:12,320 --> 01:46:13,920
existing thing and you would get more
2879
01:46:13,920 --> 01:46:16,480
leads.
2880
01:46:16,480 --> 01:46:18,000
And this one's a bit of a strategy one
2881
01:46:18,000 --> 01:46:20,320
that's kind of between sales and LTV.
2882
01:46:20,320 --> 01:46:22,159
It's it's a little bit more strategic,
2883
01:46:22,159 --> 01:46:26,000
which is like maybe you have a you don't
2884
01:46:26,000 --> 01:46:27,679
have enough leads because you're going
2885
01:46:27,679 --> 01:46:30,400
after the wrong people. And if you were
2886
01:46:30,400 --> 01:46:31,920
clearer on the avatar that you're going
2887
01:46:31,920 --> 01:46:33,199
for, you would increase the quality of
2888
01:46:33,199 --> 01:46:34,560
your leads and then by extension, you
2889
01:46:34,560 --> 01:46:36,560
end up making more. So, let me tell you
2890
01:46:36,560 --> 01:46:40,080
guys a fun little fact. So, at this
2891
01:46:40,080 --> 01:46:43,840
launch that just happened, uh we had
2892
01:46:43,840 --> 01:46:45,760
different campaign objectives for ads.
2893
01:46:45,760 --> 01:46:47,760
So, it' be like this is a campaign
2894
01:46:47,760 --> 01:46:49,679
that's optimized for leads. This is a
2895
01:46:49,679 --> 01:46:52,080
campaign that's optimized for uh return
2896
01:46:52,080 --> 01:46:53,520
on ad spend, meaning it's going to
2897
01:46:53,520 --> 01:46:54,400
optimize for people who are going to
2898
01:46:54,400 --> 01:46:56,880
pre-order the book. Okay, really
2899
01:46:56,880 --> 01:46:59,760
interesting. So, our cost per lead on
2900
01:46:59,760 --> 01:47:01,679
our our rorowaz driven campaigns,
2901
01:47:01,679 --> 01:47:02,960
basically the ones that are optimizing
2902
01:47:02,960 --> 01:47:05,840
to get more book buyers,
2903
01:47:05,840 --> 01:47:07,920
the cost per lead was like two or three
2904
01:47:07,920 --> 01:47:09,920
times higher than the campaigns that
2905
01:47:09,920 --> 01:47:12,159
were optimized for leads. That sound
2906
01:47:12,159 --> 01:47:13,360
that kind of makes sense. Okay, well,
2907
01:47:13,360 --> 01:47:14,480
this is optimized to get the most leads.
2908
01:47:14,480 --> 01:47:15,840
This is optimized to get the most sales.
2909
01:47:15,840 --> 01:47:17,199
But when you get sales, you also get
2910
01:47:17,199 --> 01:47:18,639
leads. But the lead cost on those leads
2911
01:47:18,639 --> 01:47:20,400
was like three times higher. But here's
2912
01:47:20,400 --> 01:47:22,480
where it gets really interesting.
2913
01:47:22,480 --> 01:47:25,520
The actual return on our rorowaz driven
2914
01:47:25,520 --> 01:47:28,239
campaigns, even though they cost the
2915
01:47:28,239 --> 01:47:29,840
leads cost three times higher or more
2916
01:47:29,840 --> 01:47:32,480
for those campaigns, we still had four
2917
01:47:32,480 --> 01:47:34,480
times the return from that campaign
2918
01:47:34,480 --> 01:47:35,600
compared to the lead generating
2919
01:47:35,600 --> 01:47:37,199
campaign. And so the reason I bring this
2920
01:47:37,199 --> 01:47:39,119
up is because
2921
01:47:39,119 --> 01:47:41,280
sometimes you have this this option
2922
01:47:41,280 --> 01:47:42,880
where it's like, well, I've got my
2923
01:47:42,880 --> 01:47:44,800
existing customer base that, you know, I
2924
01:47:44,800 --> 01:47:47,840
I can get uh, you know, cost me $100 to
2925
01:47:47,840 --> 01:47:50,320
get a customer and I make uh, you know,
2926
01:47:50,320 --> 01:47:53,920
$500 from the customer. Or there's an
2927
01:47:53,920 --> 01:47:57,840
avatar that costs you $500 to get that
2928
01:47:57,840 --> 01:48:02,480
you make $10,000 from.
2929
01:48:02,480 --> 01:48:05,040
Five times more expensive, right? from
2930
01:48:05,040 --> 01:48:07,920
here to here, five times the price.
2931
01:48:07,920 --> 01:48:10,320
But
2932
01:48:10,320 --> 01:48:13,760
this is a 20x and this is a 5x. So you
2933
01:48:13,760 --> 01:48:17,920
have a 4x difference in relative return.
2934
01:48:17,920 --> 01:48:19,679
And so sometime the most valuable thing
2935
01:48:19,679 --> 01:48:21,440
you can do is just decide to not sell to
2936
01:48:21,440 --> 01:48:23,440
a specific customer base and then go up
2937
01:48:23,440 --> 01:48:25,760
market to better avatars. So, I have a
2938
01:48:25,760 --> 01:48:29,040
great chapter in um lost chapters, your
2939
01:48:29,040 --> 01:48:31,199
first avatar, which is really good. Um
2940
01:48:31,199 --> 01:48:32,719
that covers this and also the entire
2941
01:48:32,719 --> 01:48:35,440
lifetime value playbook.
2942
01:48:35,440 --> 01:48:38,159
So, those are the those are the ways up
2943
01:48:38,159 --> 01:48:40,560
the mountain. Now, if I'm talking to you
2944
01:48:40,560 --> 01:48:41,920
and you're like, well, which one should
2945
01:48:41,920 --> 01:48:44,480
I do? We do the one that we believe we
2946
01:48:44,480 --> 01:48:45,600
have the highest likelihood of
2947
01:48:45,600 --> 01:48:47,040
succeeding with given our existing
2948
01:48:47,040 --> 01:48:48,800
resources and skills. So, if we're
2949
01:48:48,800 --> 01:48:49,920
looking back at this list, if you're
2950
01:48:49,920 --> 01:48:51,760
somebody who's run ads before but never
2951
01:48:51,760 --> 01:48:53,280
made content, then I probably say like,
2952
01:48:53,280 --> 01:48:55,199
let's just stick with ads. If you're
2953
01:48:55,199 --> 01:48:56,560
really good at content, I wouldn't be
2954
01:48:56,560 --> 01:48:58,159
like, "Oh, let's necessarily do ads as
2955
01:48:58,159 --> 01:49:00,400
our first bet. Can we make more or
2956
01:49:00,400 --> 01:49:03,199
better content in order to do it?" Um,
2957
01:49:03,199 --> 01:49:04,960
you know, offers. Now, the existing
2958
01:49:04,960 --> 01:49:06,320
thing there, I'd be like, "Okay, well,
2959
01:49:06,320 --> 01:49:07,600
is there a way that we don't have to
2960
01:49:07,600 --> 01:49:09,360
change your services, but just recombine
2961
01:49:09,360 --> 01:49:10,800
it in a way that makes it more
2962
01:49:10,800 --> 01:49:11,840
appetizing?" That's where the money
2963
01:49:11,840 --> 01:49:13,520
models come in and the mechanisms that
2964
01:49:13,520 --> 01:49:14,560
just make whatever you're currently
2965
01:49:14,560 --> 01:49:17,440
doing just better or more sexy.
2966
01:49:17,440 --> 01:49:19,840
Okay.
2967
01:49:19,840 --> 01:49:21,600
So that's
2968
01:49:21,600 --> 01:49:25,920
that's if leads cost uh too much. We
2969
01:49:25,920 --> 01:49:27,360
solve that. Great. So now we have lead
2970
01:49:27,360 --> 01:49:29,360
flow coming in. And so you deal with the
2971
01:49:29,360 --> 01:49:32,480
issue of well, I've got all this junk,
2972
01:49:32,480 --> 01:49:33,679
right? I got all these leads coming in,
2973
01:49:33,679 --> 01:49:36,000
but we can't close them, right? And so
2974
01:49:36,000 --> 01:49:37,280
the ways that we think through solving
2975
01:49:37,280 --> 01:49:38,960
this is like number one, better
2976
01:49:38,960 --> 01:49:41,119
conversion optimization on the page. So
2977
01:49:41,119 --> 01:49:42,400
look at the page flows, look at the
2978
01:49:42,400 --> 01:49:43,840
headlines, look at the sub headlines,
2979
01:49:43,840 --> 01:49:45,600
the lead magnet itself. if you don't
2980
01:49:45,600 --> 01:49:47,199
have a lead magnet. Sometimes that like
2981
01:49:47,199 --> 01:49:49,360
I would say probably 10% of the time I I
2982
01:49:49,360 --> 01:49:52,320
I go do a page takedown or tear down and
2983
01:49:52,320 --> 01:49:54,560
I find out that their entire page says
2984
01:49:54,560 --> 01:49:58,320
request invoice or request a quote or
2985
01:49:58,320 --> 01:50:00,159
just like book a strategy call.
2986
01:50:00,159 --> 01:50:02,400
Typically not a very compelling thing,
2987
01:50:02,400 --> 01:50:04,800
right? It'll increase the lead quality,
2988
01:50:04,800 --> 01:50:06,239
but you're missing out on a lot of sales
2989
01:50:06,239 --> 01:50:07,920
by not making the thing beforehand
2990
01:50:07,920 --> 01:50:09,520
better, right? Like why do I have the
2991
01:50:09,520 --> 01:50:11,520
scaling road map? Because it's a much
2992
01:50:11,520 --> 01:50:13,119
broader lead magnet. People who are
2993
01:50:13,119 --> 01:50:14,320
interested in scaling their business are
2994
01:50:14,320 --> 01:50:15,360
probably going to get a scaling road
2995
01:50:15,360 --> 01:50:16,480
map. If you're interested in getting a
2996
01:50:16,480 --> 01:50:17,840
scaling road map, you're likely to want
2997
01:50:17,840 --> 01:50:20,480
to come to a scaling workshop, right?
2998
01:50:20,480 --> 01:50:22,400
And then we can also grade them based on
2999
01:50:22,400 --> 01:50:24,000
the level that they select for the
3000
01:50:24,000 --> 01:50:25,360
scaling road map. So it also qualifies
3001
01:50:25,360 --> 01:50:28,880
leads for me. Right? Now the next thing
3002
01:50:28,880 --> 01:50:30,320
we can do is we can improve the sales
3003
01:50:30,320 --> 01:50:33,119
process. So I uh so obviously we have
3004
01:50:33,119 --> 01:50:35,840
lead nurture here. We have proof which
3005
01:50:35,840 --> 01:50:37,920
you can uh basically embed throughout
3006
01:50:37,920 --> 01:50:40,560
the process and you can build a VSSL.
3007
01:50:40,560 --> 01:50:41,600
So, some of you are like, "What's a
3008
01:50:41,600 --> 01:50:45,360
VSSL?" So, VSSL is something that so
3009
01:50:45,360 --> 01:50:46,719
many of you probably need to install
3010
01:50:46,719 --> 01:50:48,480
inside of your businesses. If I have
3011
01:50:48,480 --> 01:50:50,480
time later today, maybe I'll go over it.
3012
01:50:50,480 --> 01:50:52,239
But
3013
01:50:52,239 --> 01:50:55,500
should I do it now?
3014
01:50:55,500 --> 01:50:57,119
[Music]
3015
01:50:57,119 --> 01:50:58,080
All right. I'm going to give you the
3016
01:50:58,080 --> 01:51:00,800
8020 of this. All right. So, before you
3017
01:51:00,800 --> 01:51:03,679
have a sales call, any call you have,
3018
01:51:03,679 --> 01:51:04,719
there should always be a video that
3019
01:51:04,719 --> 01:51:06,159
precedes it. If you have a two call
3020
01:51:06,159 --> 01:51:08,320
close, there'll be two videos. If you
3021
01:51:08,320 --> 01:51:09,440
have a three call closer, there' be
3022
01:51:09,440 --> 01:51:11,119
three videos. All right, this is what a
3023
01:51:11,119 --> 01:51:14,239
VSSL does. The function of a VSSL is to
3024
01:51:14,239 --> 01:51:16,080
take all of the stuff that your sales
3025
01:51:16,080 --> 01:51:17,760
team would repeat over and over again on
3026
01:51:17,760 --> 01:51:20,239
a call and then just preload that with
3027
01:51:20,239 --> 01:51:22,800
the customer so that when you talk to
3028
01:51:22,800 --> 01:51:24,960
the customer, they already have all the
3029
01:51:24,960 --> 01:51:26,159
information. And then what the
3030
01:51:26,159 --> 01:51:28,320
salesperson is doing is actually just
3031
01:51:28,320 --> 01:51:30,960
making sure that they can make the
3032
01:51:30,960 --> 01:51:32,000
decision. They're helping them
3033
01:51:32,000 --> 01:51:33,600
personalize it to get them to close. All
3034
01:51:33,600 --> 01:51:36,400
right, so let's do it over here. Let's
3035
01:51:36,400 --> 01:51:39,880
do it over here.
3036
01:51:40,239 --> 01:51:42,159
Okay.
3037
01:51:42,159 --> 01:51:47,440
Your wish is my command. All right. So,
3038
01:51:47,440 --> 01:51:49,760
so you go proof,
3039
01:51:49,760 --> 01:51:52,560
promise. This is not in order. Sorry.
3040
01:51:52,560 --> 01:51:54,800
Pain,
3041
01:51:54,800 --> 01:51:57,800
plan,
3042
01:51:58,000 --> 01:52:00,000
picture. Okay. So, we have our five Ps.
3043
01:52:00,000 --> 01:52:01,040
Now, you're like, that's really similar
3044
01:52:01,040 --> 01:52:02,960
to what a YouTube video is. Yep. That's
3045
01:52:02,960 --> 01:52:04,159
because that's what gets attention and
3046
01:52:04,159 --> 01:52:07,199
gets people to stay. So, hey, uh, you
3047
01:52:07,199 --> 01:52:09,599
know, I can help you get appointments
3048
01:52:09,599 --> 01:52:12,880
using LinkedIn. If you're tired of
3049
01:52:12,880 --> 01:52:14,560
having people who are lowquality and
3050
01:52:14,560 --> 01:52:15,679
having them not show up and having to
3051
01:52:15,679 --> 01:52:16,719
come up with new creative and be the
3052
01:52:16,719 --> 01:52:19,520
face of your brand, um, I can help you
3053
01:52:19,520 --> 01:52:22,480
out and here's proof of 10 other
3054
01:52:22,480 --> 01:52:23,599
companies that are just like yours that
3055
01:52:23,599 --> 01:52:25,360
I've helped do it. And so, this is the
3056
01:52:25,360 --> 01:52:26,880
one, two, three-step process I'm going
3057
01:52:26,880 --> 01:52:28,560
to walk you through in this video and I
3058
01:52:28,560 --> 01:52:29,840
give you a nice visual that tells you
3059
01:52:29,840 --> 01:52:31,520
where you're at. So, that's how I would
3060
01:52:31,520 --> 01:52:34,159
intro this thing, right? And so then for
3061
01:52:34,159 --> 01:52:36,159
each of these, we're basically just
3062
01:52:36,159 --> 01:52:38,239
going to have a a belief breaking
3063
01:52:38,239 --> 01:52:39,199
framework. So it's going to be like
3064
01:52:39,199 --> 01:52:41,599
their FAQ number one. So consider this
3065
01:52:41,599 --> 01:52:43,920
as like the the biggest objections,
3066
01:52:43,920 --> 01:52:46,400
right? You're going to have number one,
3067
01:52:46,400 --> 01:52:48,560
number two,
3068
01:52:48,560 --> 01:52:51,440
number three, whatever, number four. You
3069
01:52:51,440 --> 01:52:52,960
can even go up to number five, right?
3070
01:52:52,960 --> 01:52:54,560
Whatever. I don't I don't usually go
3071
01:52:54,560 --> 01:52:56,480
over five. Try to stick to, you know,
3072
01:52:56,480 --> 01:52:58,480
three to five in terms of my my things,
3073
01:52:58,480 --> 01:53:00,880
right? And so for each of these, we want
3074
01:53:00,880 --> 01:53:05,960
to say uh what they think,
3075
01:53:09,920 --> 01:53:13,480
why it's wrong,
3076
01:53:13,920 --> 01:53:17,239
what's right,
3077
01:53:18,320 --> 01:53:21,320
proof.
3078
01:53:22,080 --> 01:53:23,440
So, a lot of people don't want to travel
3079
01:53:23,440 --> 01:53:25,599
to Vegas, but actually traveling to
3080
01:53:25,599 --> 01:53:27,199
Vegas is an awesome thing because when
3081
01:53:27,199 --> 01:53:28,320
you get in the sky, you actually get
3082
01:53:28,320 --> 01:53:29,679
some perspective literally physically on
3083
01:53:29,679 --> 01:53:31,119
the business. And you need to have that
3084
01:53:31,119 --> 01:53:33,280
time and that separation in order to
3085
01:53:33,280 --> 01:53:35,280
understand like let the dust settle in
3086
01:53:35,280 --> 01:53:36,239
your mind and so you can get really
3087
01:53:36,239 --> 01:53:37,199
strategic about what you're going to
3088
01:53:37,199 --> 01:53:38,800
implement. So, that's me saying what's
3089
01:53:38,800 --> 01:53:40,639
wrong, what's right in one line. And
3090
01:53:40,639 --> 01:53:42,480
here's proof. Here's John, Mary, and
3091
01:53:42,480 --> 01:53:45,280
Jacob who all said that actually getting
3092
01:53:45,280 --> 01:53:46,560
space away from their business was good
3093
01:53:46,560 --> 01:53:48,080
because they got away from the chaos.
3094
01:53:48,080 --> 01:53:49,520
They literally got physical space. They
3095
01:53:49,520 --> 01:53:50,880
could take their notes. They come with
3096
01:53:50,880 --> 01:53:51,920
intention. they could leave with
3097
01:53:51,920 --> 01:53:53,360
intention and end up being one of the
3098
01:53:53,360 --> 01:53:54,639
most valuable things they did and they
3099
01:53:54,639 --> 01:53:57,040
loved the city. Great. And they got a
3100
01:53:57,040 --> 01:53:58,080
memory for it that if they had just
3101
01:53:58,080 --> 01:53:58,960
gotten the memory it would have been
3102
01:53:58,960 --> 01:54:00,480
worth it on its own. So we take
3103
01:54:00,480 --> 01:54:01,679
something that they thought was going to
3104
01:54:01,679 --> 01:54:03,440
be I don't want to travel and turn it
3105
01:54:03,440 --> 01:54:05,040
into a actually this is a really good
3106
01:54:05,040 --> 01:54:06,639
thing. And so we just go through each of
3107
01:54:06,639 --> 01:54:08,800
the things that we would have and then
3108
01:54:08,800 --> 01:54:09,840
those are going to be the things that
3109
01:54:09,840 --> 01:54:11,599
most people object to. Why don't why
3110
01:54:11,599 --> 01:54:14,000
don't I want to buy, right? And then
3111
01:54:14,000 --> 01:54:16,960
we're going to have our CTA that has
3112
01:54:16,960 --> 01:54:19,520
some sort of the offer installed. Now,
3113
01:54:19,520 --> 01:54:21,199
sometimes you can do you can embed the
3114
01:54:21,199 --> 01:54:22,639
offer into each of these pieces like
3115
01:54:22,639 --> 01:54:24,159
each component of the offer can overcome
3116
01:54:24,159 --> 01:54:26,320
one of the obstacles. That works too.
3117
01:54:26,320 --> 01:54:27,920
Um, but if you're CTA offer and say,
3118
01:54:27,920 --> 01:54:29,840
"Hey, go book a call, go take the next
3119
01:54:29,840 --> 01:54:32,000
action, whatever." Now, if you have like
3120
01:54:32,000 --> 01:54:33,760
an in-person meeting, if you're for the
3121
01:54:33,760 --> 01:54:35,040
those you're in person, which is like I
3122
01:54:35,040 --> 01:54:37,679
think like 30% of you guys, um you can
3123
01:54:37,679 --> 01:54:39,280
just send this before they actually meet
3124
01:54:39,280 --> 01:54:41,440
with the sales person in person and you
3125
01:54:41,440 --> 01:54:43,679
can tell inside of the video, give a
3126
01:54:43,679 --> 01:54:46,400
keyword that's like um say what color
3127
01:54:46,400 --> 01:54:48,159
shirt you want, say what size shirt you
3128
01:54:48,159 --> 01:54:50,719
want, say tell me the dynamics of your
3129
01:54:50,719 --> 01:54:52,880
deck, tell me how many years old the
3130
01:54:52,880 --> 01:54:54,719
business, your your house is, whatever,
3131
01:54:54,719 --> 01:54:56,400
right? And the reason you have them send
3132
01:54:56,400 --> 01:54:57,679
that back is that way you actually know
3133
01:54:57,679 --> 01:55:00,639
they watch the video. Right now, if
3134
01:55:00,639 --> 01:55:01,760
you're in that kind of lead nurture
3135
01:55:01,760 --> 01:55:02,800
setting, let me give you the scripting
3136
01:55:02,800 --> 01:55:04,719
for this. You would say something like,
3137
01:55:04,719 --> 01:55:06,719
uh, hey, we like to send this video so
3138
01:55:06,719 --> 01:55:08,560
that uh, it has all the graphs and the
3139
01:55:08,560 --> 01:55:10,080
charts and the stats. And honestly, it's
3140
01:55:10,080 --> 01:55:11,199
way better than us trying to just like
3141
01:55:11,199 --> 01:55:13,599
do it offhand. Um, would you rather
3142
01:55:13,599 --> 01:55:16,800
watch that with us or on your own? Now,
3143
01:55:16,800 --> 01:55:17,920
no one's like, I don't want to watch
3144
01:55:17,920 --> 01:55:19,040
this with you, right? They're like, I'll
3145
01:55:19,040 --> 01:55:20,560
watch it on my own. So, then they told
3146
01:55:20,560 --> 01:55:21,679
you they want to watch it on their own,
3147
01:55:21,679 --> 01:55:23,119
which is what you want them to do, too.
3148
01:55:23,119 --> 01:55:24,960
But now, that way you set the precedent
3149
01:55:24,960 --> 01:55:26,400
so that if they don't watch it, you be
3150
01:55:26,400 --> 01:55:28,960
like, "Oh, I didn't get your text. Um,
3151
01:55:28,960 --> 01:55:30,639
you want to go pop it up and I'll uh
3152
01:55:30,639 --> 01:55:32,239
I'll be right back and I'll grab a cup
3153
01:55:32,239 --> 01:55:33,599
of coffee, whatever, and then uh we can
3154
01:55:33,599 --> 01:55:34,960
rock and roll." That way you have full
3155
01:55:34,960 --> 01:55:36,560
context on this so that you have the
3156
01:55:36,560 --> 01:55:37,840
visuals and things like that that I
3157
01:55:37,840 --> 01:55:38,960
could probably not do with my hands,
3158
01:55:38,960 --> 01:55:41,440
right? Whatever. So, you have your CTA
3159
01:55:41,440 --> 01:55:43,440
and offer, and then we just do a proof
3160
01:55:43,440 --> 01:55:46,440
roll,
3161
01:55:46,800 --> 01:55:48,320
which is basically I just have proof
3162
01:55:48,320 --> 01:55:49,599
going for the rest of it of just people
3163
01:55:49,599 --> 01:55:50,880
or experiences who've gone through
3164
01:55:50,880 --> 01:55:53,040
whatever the thing is. This is your
3165
01:55:53,040 --> 01:55:55,840
quick and dirty VSSL.
3166
01:55:55,840 --> 01:55:57,840
Five to seven minutes. Just hit it. One,
3167
01:55:57,840 --> 01:56:00,719
two, three, four. Um, super super
3168
01:56:00,719 --> 01:56:02,960
simple. Okay, so this is a VSSL
3169
01:56:02,960 --> 01:56:04,800
framework. And the thing is is that you
3170
01:56:04,800 --> 01:56:06,159
want this to be between every
3171
01:56:06,159 --> 01:56:08,480
conversation. And if the sale is moving
3172
01:56:08,480 --> 01:56:09,679
along, then they might have different
3173
01:56:09,679 --> 01:56:11,360
objections at different stages in the
3174
01:56:11,360 --> 01:56:12,880
conversation. You make the VSSL to do
3175
01:56:12,880 --> 01:56:14,400
that. And if you're like, wait a second,
3176
01:56:14,400 --> 01:56:15,599
but that means that sometimes I might
3177
01:56:15,599 --> 01:56:17,520
have someone watch two VSSLs that are
3178
01:56:17,520 --> 01:56:18,800
just different but still sell the same
3179
01:56:18,800 --> 01:56:21,679
thing. Yes, totally fine. Selling
3180
01:56:21,679 --> 01:56:22,719
someone more does not decrease the
3181
01:56:22,719 --> 01:56:25,520
likelihood that they buy. Okay. So, that
3182
01:56:25,520 --> 01:56:26,880
was a little segue, a little side quest,
3183
01:56:26,880 --> 01:56:28,560
but hopefully you guys are good with it.
3184
01:56:28,560 --> 01:56:30,159
So, hope you guys are happy with that.
3185
01:56:30,159 --> 01:56:32,880
Uh, okay. So, this is because we're
3186
01:56:32,880 --> 01:56:35,040
we're trying to solve the uh I've got
3187
01:56:35,040 --> 01:56:36,560
leads, but we're not closing as many,
3188
01:56:36,560 --> 01:56:38,239
right? So, we do CRO and the page.
3189
01:56:38,239 --> 01:56:39,840
Great. We have better sales process.
3190
01:56:39,840 --> 01:56:41,599
Great. Now, we do better sales training.
3191
01:56:41,599 --> 01:56:43,440
So, it's like, can we train the guys or
3192
01:56:43,440 --> 01:56:45,040
the gals to say the words they need to
3193
01:56:45,040 --> 01:56:47,599
say in the right way? The HQ handbook,
3194
01:56:47,599 --> 01:56:48,800
the closer handbook for those you guys
3195
01:56:48,800 --> 01:56:50,239
picked it up, also great. obviously is
3196
01:56:50,239 --> 01:56:51,199
our training and our cadence and our
3197
01:56:51,199 --> 01:56:52,800
onboarding all that stuff inside of it.
3198
01:56:52,800 --> 01:56:56,719
Um, better reputation. So maybe people
3199
01:56:56,719 --> 01:56:57,920
aren't closing because they see online
3200
01:56:57,920 --> 01:56:59,679
that you got terrible reviews, right? So
3201
01:56:59,679 --> 01:57:01,199
this is where this is where some of the
3202
01:57:01,199 --> 01:57:03,199
stuff comes a little full circle where
3203
01:57:03,199 --> 01:57:04,239
you can do whatever you want from
3204
01:57:04,239 --> 01:57:05,440
marketing side branding, but you also
3205
01:57:05,440 --> 01:57:07,440
have the product, right? Like are we
3206
01:57:07,440 --> 01:57:10,000
retaining customers? Um, are we picking
3207
01:57:10,000 --> 01:57:11,199
the right customers, which is what I
3208
01:57:11,199 --> 01:57:12,560
started today with like if you're
3209
01:57:12,560 --> 01:57:13,679
getting people who can't speak English
3210
01:57:13,679 --> 01:57:14,960
and you're trying to teach them Spanish
3211
01:57:14,960 --> 01:57:16,960
and they can't speak English, probably
3212
01:57:16,960 --> 01:57:18,719
not going to be successful, right? and
3213
01:57:18,719 --> 01:57:20,000
maybe you have an amazing Spanish
3214
01:57:20,000 --> 01:57:21,119
program, but if they can't speak
3215
01:57:21,119 --> 01:57:22,960
English, you're selling the wrong people
3216
01:57:22,960 --> 01:57:24,080
and it is your fault because you're
3217
01:57:24,080 --> 01:57:26,000
you're taking the money. So, you want to
3218
01:57:26,000 --> 01:57:27,360
make sure that you actually install
3219
01:57:27,360 --> 01:57:28,719
prerequisites. Like, what is actually
3220
01:57:28,719 --> 01:57:30,560
required to be successful? And for
3221
01:57:30,560 --> 01:57:34,080
everyone here, strongly encourage you to
3222
01:57:34,080 --> 01:57:35,599
at least set some requisites. Like, if
3223
01:57:35,599 --> 01:57:36,800
you want to come to one of the workshops
3224
01:57:36,800 --> 01:57:38,480
here, you have to be making I think it's
3225
01:57:38,480 --> 01:57:40,560
$500,000 a year, right? Like that's the
3226
01:57:40,560 --> 01:57:41,920
bar, right? It's just because it's going
3227
01:57:41,920 --> 01:57:43,040
to be it's going to be more valuable.
3228
01:57:43,040 --> 01:57:44,400
It's better. Like the the leads sort
3229
01:57:44,400 --> 01:57:45,520
automatically. Like you can't even get
3230
01:57:45,520 --> 01:57:47,199
on the calendar otherwise, right? It's
3231
01:57:47,199 --> 01:57:48,400
just it's just because like if
3232
01:57:48,400 --> 01:57:50,639
somebody's at $100,000 a year, there's
3233
01:57:50,639 --> 01:57:51,840
nothing wrong with that. They just need
3234
01:57:51,840 --> 01:57:54,239
more tactics, right? And we obviously
3235
01:57:54,239 --> 01:57:57,040
have these tactics. Um but most people
3236
01:57:57,040 --> 01:57:58,320
are like at 500, they're like, "How do I
3237
01:57:58,320 --> 01:57:59,760
get to and that's the minimum, right?
3238
01:57:59,760 --> 01:58:01,520
The average I think is like between one
3239
01:58:01,520 --> 01:58:02,560
and four million depending on the
3240
01:58:02,560 --> 01:58:04,239
workshop." Um but anyways, just to give
3241
01:58:04,239 --> 01:58:06,880
you guys an idea. Okay, so uh the next
3242
01:58:06,880 --> 01:58:08,159
thing is better lead quality. So I just
3243
01:58:08,159 --> 01:58:09,840
touched on this, but you might have the
3244
01:58:09,840 --> 01:58:10,960
issue where you're like, "We have so
3245
01:58:10,960 --> 01:58:12,960
many leads with so much junk, right? So
3246
01:58:12,960 --> 01:58:15,040
we have to add friction to the process,
3247
01:58:15,040 --> 01:58:17,280
right? Also, the ads themselves, you
3248
01:58:17,280 --> 01:58:19,199
might be not calling out the right
3249
01:58:19,199 --> 01:58:21,679
people. Right? If I'm giving away, I'll
3250
01:58:21,679 --> 01:58:23,599
give you an extreme example. If I give
3251
01:58:23,599 --> 01:58:27,040
away a free vacation for my IT services,
3252
01:58:27,040 --> 01:58:28,800
that's probably not a good lead magnet.
3253
01:58:28,800 --> 01:58:30,000
That's probably not a good mechanism
3254
01:58:30,000 --> 01:58:30,960
because I'm going to get everybody who
3255
01:58:30,960 --> 01:58:32,239
wants to go on a free vacation, not
3256
01:58:32,239 --> 01:58:34,239
people want IT services. Now, if the big
3257
01:58:34,239 --> 01:58:36,159
giveaway that I'm giving is like IT
3258
01:58:36,159 --> 01:58:37,599
services that are fully managed for a
3259
01:58:37,599 --> 01:58:39,280
year, that's probably going to be a way
3260
01:58:39,280 --> 01:58:42,239
better clientele base than me trying to
3261
01:58:42,239 --> 01:58:43,679
get uh people who want a vacation. Now
3262
01:58:43,679 --> 01:58:46,000
I'm going to get way cheaper leads, but
3263
01:58:46,000 --> 01:58:47,760
I'm not going to make more. Right? And
3264
01:58:47,760 --> 01:58:49,760
so introducing friction in the funnel,
3265
01:58:49,760 --> 01:58:51,840
adding a VSSL, adding proof, making sure
3266
01:58:51,840 --> 01:58:53,360
the ads call out the correct avatar.
3267
01:58:53,360 --> 01:58:55,040
That's this higher quality avatar. And
3268
01:58:55,040 --> 01:58:56,800
then if you want, you can add in Bant.
3269
01:58:56,800 --> 01:58:57,760
And some of you guys don't know what
3270
01:58:57,760 --> 01:58:58,960
Bant is, so I'll tell you what that is
3271
01:58:58,960 --> 01:59:02,119
right now.
3272
01:59:18,560 --> 01:59:20,560
budget, authority, need, timing. Do you
3273
01:59:20,560 --> 01:59:22,080
got the money to spend, the ability to
3274
01:59:22,080 --> 01:59:23,599
say yes? Do you need the thing right
3275
01:59:23,599 --> 01:59:25,360
now? Or do you need the thing? Is now
3276
01:59:25,360 --> 01:59:28,639
the right time? And so when you ask like
3277
01:59:28,639 --> 01:59:30,000
these are the four things you need to
3278
01:59:30,000 --> 01:59:31,520
ask a prospect if you have any kind of
3279
01:59:31,520 --> 01:59:33,199
application process for whatever service
3280
01:59:33,199 --> 01:59:35,599
you sell. This is what you want to ask.
3281
01:59:35,599 --> 01:59:37,599
And this is me kind of like opening up
3282
01:59:37,599 --> 01:59:39,760
the kimono for you.
3283
01:59:39,760 --> 01:59:43,280
I have I have I have just been in charge
3284
01:59:43,280 --> 01:59:44,800
of creating sales processes for
3285
01:59:44,800 --> 01:59:47,599
everything from you know I just from so
3286
01:59:47,599 --> 01:59:48,480
many different things from teeth
3287
01:59:48,480 --> 01:59:51,199
whitening to to marketing agencies to
3288
01:59:51,199 --> 01:59:55,480
plumbing to whatever right
3289
01:59:55,760 --> 01:59:59,199
I I so rarely I c I can't actually
3290
01:59:59,199 --> 02:00:02,560
recall a time where I I made less money
3291
02:00:02,560 --> 02:00:04,560
by adding friction and what's
3292
02:00:04,560 --> 02:00:05,840
interesting about it is it's the thing
3293
02:00:05,840 --> 02:00:07,920
that people are afraid to do. People are
3294
02:00:07,920 --> 02:00:10,080
afraid to raise prices. People are
3295
02:00:10,080 --> 02:00:13,040
afraid to narrow their avatar. People
3296
02:00:13,040 --> 02:00:15,520
are afraid to add friction to a sales
3297
02:00:15,520 --> 02:00:19,119
process. But almost always when you do,
3298
02:00:19,119 --> 02:00:20,800
when you focus on quality because no one
3299
02:00:20,800 --> 02:00:22,800
else will do it, is where the alpha is.
3300
02:00:22,800 --> 02:00:25,280
It's where the arbitrage exists. And so
3301
02:00:25,280 --> 02:00:27,760
I would encourage you to like be bold
3302
02:00:27,760 --> 02:00:30,080
here and be willing to to do things that
3303
02:00:30,080 --> 02:00:31,199
other people don't do so you can get
3304
02:00:31,199 --> 02:00:32,960
things other people don't get. Like most
3305
02:00:32,960 --> 02:00:35,119
business owners are mediocre at best.
3306
02:00:35,119 --> 02:00:36,560
Well, most business owner are mediocre.
3307
02:00:36,560 --> 02:00:38,159
I also say that most business own are
3308
02:00:38,159 --> 02:00:40,400
average and average people don't venture
3309
02:00:40,400 --> 02:00:43,280
off. They don't take bets, right? And so
3310
02:00:43,280 --> 02:00:44,560
be willing to do the thing that's going
3311
02:00:44,560 --> 02:00:46,639
to increase your lead cost. Do the thing
3312
02:00:46,639 --> 02:00:48,080
that's going to that's going to give you
3313
02:00:48,080 --> 02:00:50,880
a $500 lead that's worth $10,000 rather
3314
02:00:50,880 --> 02:00:52,400
than
3315
02:00:52,400 --> 02:00:55,760
a uh $100 lead that's worth 500. Like
3316
02:00:55,760 --> 02:00:59,280
you will spend more and you could make
3317
02:00:59,280 --> 02:01:01,440
more as a result. And oftentimes for me,
3318
02:01:01,440 --> 02:01:03,280
I have found that to be true more times
3319
02:01:03,280 --> 02:01:05,840
than not by a lot. So these are the
3320
02:01:05,840 --> 02:01:07,040
things that we that these are the
3321
02:01:07,040 --> 02:01:08,719
playbooks that we use that we that we
3322
02:01:08,719 --> 02:01:10,719
implement to fix sales related issues
3323
02:01:10,719 --> 02:01:14,000
when you can't afford uh leads. Okay.
3324
02:01:14,000 --> 02:01:15,599
Additionally, you can do uh uh payment
3325
02:01:15,599 --> 02:01:19,119
options if you don't have that. So um uh
3326
02:01:19,119 --> 02:01:20,800
payment plan downells is is a great way
3327
02:01:20,800 --> 02:01:22,000
if you don't already have payment plans
3328
02:01:22,000 --> 02:01:23,119
installed. I would just install that
3329
02:01:23,119 --> 02:01:24,320
system straight up which is inside of
3330
02:01:24,320 --> 02:01:26,480
the money models book. Okay. So you're
3331
02:01:26,480 --> 02:01:27,679
closing too few of them. All right. So,
3332
02:01:27,679 --> 02:01:29,599
we've got enough leads and they're the
3333
02:01:29,599 --> 02:01:30,960
right price and we're closing enough of
3334
02:01:30,960 --> 02:01:33,599
them, but we can't do more because if we
3335
02:01:33,599 --> 02:01:34,719
do that, we're still not making enough
3336
02:01:34,719 --> 02:01:36,080
per customer. So, that's a backend
3337
02:01:36,080 --> 02:01:40,000
issue. So, you can increase the price or
3338
02:01:40,000 --> 02:01:41,440
implement a price raise. What's
3339
02:01:41,440 --> 02:01:42,960
difficult about me saying this to you is
3340
02:01:42,960 --> 02:01:44,480
that some of you require me to literally
3341
02:01:44,480 --> 02:01:46,320
say to you on the phone and walk through
3342
02:01:46,320 --> 02:01:49,040
this logic tree with you, but I can't
3343
02:01:49,040 --> 02:01:50,400
physically do that. And so, this is me
3344
02:01:50,400 --> 02:01:51,360
trying to say it. If you walk through
3345
02:01:51,360 --> 02:01:53,199
this logic tree and you're like, well,
3346
02:01:53,199 --> 02:01:54,639
this is where I'm at, then this is what
3347
02:01:54,639 --> 02:01:57,040
you need to do, right? Alternatively,
3348
02:01:57,040 --> 02:01:59,599
you could decrease your costs. How can
3349
02:01:59,599 --> 02:02:04,880
we spend less to deliver on customers?
3350
02:02:04,880 --> 02:02:06,239
And I'll get I'll get you a couple more
3351
02:02:06,239 --> 02:02:08,639
taxes on this in the in the latter half.
3352
02:02:08,639 --> 02:02:10,639
Okay. Can we increase frequency? Can we
3353
02:02:10,639 --> 02:02:13,199
get them to buy more often?
3354
02:02:13,199 --> 02:02:15,040
Can we get them to buy again at the most
3355
02:02:15,040 --> 02:02:17,520
basic level? Can we ascend like upsells
3356
02:02:17,520 --> 02:02:20,000
and crossells? So, I'll give you guys a
3357
02:02:20,000 --> 02:02:24,040
little tactic around this.
3358
02:02:24,719 --> 02:02:26,480
You guys want it tactical. So hopefully
3359
02:02:26,480 --> 02:02:27,760
I know the first part started with
3360
02:02:27,760 --> 02:02:29,199
clouds. Hopefully you guys are good with
3361
02:02:29,199 --> 02:02:32,400
the the dirt the dirt the tactics of
3362
02:02:32,400 --> 02:02:36,480
what makes this work. Okay. So if you're
3363
02:02:36,480 --> 02:02:38,239
let's say a customer relationship starts
3364
02:02:38,239 --> 02:02:40,400
here
3365
02:02:40,400 --> 02:02:42,000
and this is kind of like your duration.
3366
02:02:42,000 --> 02:02:44,719
You sell you know 12 a 12-week thing
3367
02:02:44,719 --> 02:02:48,480
whatever. Okay. So the first time like
3368
02:02:48,480 --> 02:02:49,920
there are different specific areas that
3369
02:02:49,920 --> 02:02:51,199
you can do ascensions where you sell
3370
02:02:51,199 --> 02:02:53,360
someone more stuff, right? Num one of
3371
02:02:53,360 --> 02:02:56,159
them is just immediately. The next one I
3372
02:02:56,159 --> 02:02:58,639
usually like is like 24 to 48 hours.
3373
02:02:58,639 --> 02:03:00,560
They kind of realize that they they now
3374
02:03:00,560 --> 02:03:03,280
need something immediately. I also have
3375
02:03:03,280 --> 02:03:06,280
milestone.
3376
02:03:08,880 --> 02:03:12,080
We have halfway
3377
02:03:12,080 --> 02:03:15,719
and then last chance.
3378
02:03:15,840 --> 02:03:19,360
Let me give you a very important note.
3379
02:03:19,360 --> 02:03:21,520
We've got four opportunities to upsell
3380
02:03:21,520 --> 02:03:25,199
in the first half here.
3381
02:03:25,199 --> 02:03:27,280
Four.
3382
02:03:27,280 --> 02:03:30,239
Four. Okay.
3383
02:03:30,239 --> 02:03:32,320
And then one at the end. And so right
3384
02:03:32,320 --> 02:03:33,679
now, if you're somebody who waits till
3385
02:03:33,679 --> 02:03:35,840
here, which many of you are, you're
3386
02:03:35,840 --> 02:03:37,679
usually losing out two to 3x on your
3387
02:03:37,679 --> 02:03:39,679
sales. So, if you're like industry
3388
02:03:39,679 --> 02:03:42,480
average on this is you'll get between 10
3389
02:03:42,480 --> 02:03:45,679
and 30% of what you could get if you
3390
02:03:45,679 --> 02:03:48,400
only upsell here.
3391
02:03:48,400 --> 02:03:50,239
Crazy. And so, if you're like, man, I'm
3392
02:03:50,239 --> 02:03:51,199
not getting people to get into my
3393
02:03:51,199 --> 02:03:52,239
continuity. I'm not getting people to
3394
02:03:52,239 --> 02:03:53,280
take my ascensions. It's because you're
3395
02:03:53,280 --> 02:03:55,119
doing it at the wrong time. You got to
3396
02:03:55,119 --> 02:03:58,520
offer it earlier.
3397
02:03:58,880 --> 02:04:00,400
Hopefully, that was cool for you guys.
3398
02:04:00,400 --> 02:04:01,920
Okay.
3399
02:04:01,920 --> 02:04:04,080
So, that's how we solve I've I've got
3400
02:04:04,080 --> 02:04:05,760
the leads. I'm making the sales, but I'm
3401
02:04:05,760 --> 02:04:07,599
not making enough money per customer.
3402
02:04:07,599 --> 02:04:09,840
Those are the solutions. So then
3403
02:04:09,840 --> 02:04:11,119
finally, you're like, "Okay, I've got
3404
02:04:11,119 --> 02:04:12,719
all that stuff. I'm making profit, but
3405
02:04:12,719 --> 02:04:14,400
I'm not making the profit fast enough."
3406
02:04:14,400 --> 02:04:16,639
This is cash flow problems. So these
3407
02:04:16,639 --> 02:04:18,880
this is all dirt. Super tactical. Number
3408
02:04:18,880 --> 02:04:20,480
one is you can push out vendor terms,
3409
02:04:20,480 --> 02:04:21,920
especially if you're a bigger business.
3410
02:04:21,920 --> 02:04:24,000
You can say, "Hey, uh the the the status
3411
02:04:24,000 --> 02:04:25,679
quo here is that we pay everything net
3412
02:04:25,679 --> 02:04:27,760
30, meaning you deliver services and
3413
02:04:27,760 --> 02:04:28,800
then we pay you at the end of the month.
3414
02:04:28,800 --> 02:04:31,119
That's how we do things, right?" Also
3415
02:04:31,119 --> 02:04:32,480
tends to work better once you've already
3416
02:04:32,480 --> 02:04:34,080
gotten relationships with with with
3417
02:04:34,080 --> 02:04:35,520
businesses. they're typically not
3418
02:04:35,520 --> 02:04:37,679
willing to lose you as a customer. But
3419
02:04:37,679 --> 02:04:39,840
when you do that to all vendors, you
3420
02:04:39,840 --> 02:04:41,119
literally accelerate your cash flow in
3421
02:04:41,119 --> 02:04:43,760
the entire business by 30 days. Number
3422
02:04:43,760 --> 02:04:48,159
one. Number two, uh payment terms. So
3423
02:04:48,159 --> 02:04:49,520
I'll give you three or four different
3424
02:04:49,520 --> 02:04:51,280
tactics here. So number one is that
3425
02:04:51,280 --> 02:04:52,560
instead of starting with like a
3426
02:04:52,560 --> 02:04:54,639
monthtomonth or some sort of uh for
3427
02:04:54,639 --> 02:04:57,119
those you have recurring stuff, um and
3428
02:04:57,119 --> 02:04:58,320
typically people who have cash flow
3429
02:04:58,320 --> 02:04:59,840
issues tend to be recurring or more
3430
02:04:59,840 --> 02:05:01,360
long-term in nature versus onetime
3431
02:05:01,360 --> 02:05:03,520
transactions. So this applies to you.
3432
02:05:03,520 --> 02:05:05,520
Um, instead of having month-to-month be
3433
02:05:05,520 --> 02:05:07,920
the the core offer, just shift it so
3434
02:05:07,920 --> 02:05:10,800
that the primary offer is quarterly and
3435
02:05:10,800 --> 02:05:12,719
annual gets a discount and
3436
02:05:12,719 --> 02:05:14,800
month-to-month is more expensive. That's
3437
02:05:14,800 --> 02:05:17,199
just that one shift can accelerate cash
3438
02:05:17,199 --> 02:05:18,239
because now you're getting paid three
3439
02:05:18,239 --> 02:05:19,760
months at a time instead of one month at
3440
02:05:19,760 --> 02:05:21,599
a time.
3441
02:05:21,599 --> 02:05:24,560
That's one. Another tactic is that you
3442
02:05:24,560 --> 02:05:27,599
can always present high to low. So I if
3443
02:05:27,599 --> 02:05:29,360
whenever I present stuff I prefer to say
3444
02:05:29,360 --> 02:05:31,119
like what the total price is with
3445
02:05:31,119 --> 02:05:33,599
interest with whatever and then say hey
3446
02:05:33,599 --> 02:05:36,639
want to save money. Yes. Save money by
3447
02:05:36,639 --> 02:05:38,960
prepaying more of it. So if I have like
3448
02:05:38,960 --> 02:05:40,560
a year of service I'm going to sell the
3449
02:05:40,560 --> 02:05:42,960
month-to-month price with installments
3450
02:05:42,960 --> 02:05:45,360
and interest as the price I want to
3451
02:05:45,360 --> 02:05:48,239
anchor there and then say hey want to
3452
02:05:48,239 --> 02:05:50,800
save some money cool prepay for less and
3453
02:05:50,800 --> 02:05:54,080
then we can start doing step downs.
3454
02:05:54,080 --> 02:05:55,920
And then third is layaway. So, I think
3455
02:05:55,920 --> 02:05:57,679
this is still one of my like one of
3456
02:05:57,679 --> 02:05:59,760
those wildly underrated methods. I don't
3457
02:05:59,760 --> 02:06:01,119
know why people don't do it. Like, I
3458
02:06:01,119 --> 02:06:02,159
still have no idea why people don't do
3459
02:06:02,159 --> 02:06:05,280
it, but layaway rocks. Layaway is you
3460
02:06:05,280 --> 02:06:06,480
can start paying now and when you're
3461
02:06:06,480 --> 02:06:08,560
finished paying or when you pay you pay
3462
02:06:08,560 --> 02:06:10,639
half of what you need to pay will start
3463
02:06:10,639 --> 02:06:13,679
working. That's it. It's so simple,
3464
02:06:13,679 --> 02:06:15,360
right? Like that's that's all it is. You
3465
02:06:15,360 --> 02:06:17,760
pay and then you get rather than getting
3466
02:06:17,760 --> 02:06:19,920
or giving and then getting paid. like
3467
02:06:19,920 --> 02:06:22,480
the where you get paid relative to how
3468
02:06:22,480 --> 02:06:23,920
you deliver service dictates the
3469
02:06:23,920 --> 02:06:25,440
leverage you have in the relationship.
3470
02:06:25,440 --> 02:06:28,480
So imagine where you go to a surgeon and
3471
02:06:28,480 --> 02:06:30,800
they go perform surgery on you and then
3472
02:06:30,800 --> 02:06:32,000
you're like, "Okay, I'll pay you after
3473
02:06:32,000 --> 02:06:33,760
the surgery." It doesn't work that way,
3474
02:06:33,760 --> 02:06:35,440
right? Now, it does work that way for
3475
02:06:35,440 --> 02:06:36,639
the insurance companies to pay the
3476
02:06:36,639 --> 02:06:38,000
doctors because they have leverage over
3477
02:06:38,000 --> 02:06:39,760
the doctors. But if you're paying a
3478
02:06:39,760 --> 02:06:41,119
doctor, you pay the doctor first because
3479
02:06:41,119 --> 02:06:43,199
they have leverage over you. It's like a
3480
02:06:43,199 --> 02:06:44,639
food chain. It's the money chain. All
3481
02:06:44,639 --> 02:06:45,520
right? Right? And so if you want to go
3482
02:06:45,520 --> 02:06:46,800
up the money chain, you got to act like
3483
02:06:46,800 --> 02:06:51,119
a up the money chain uh business, right?
3484
02:06:51,119 --> 02:06:53,119
Another one is prepay incentives. So I
3485
02:06:53,119 --> 02:06:54,239
think a lot of you guys are missing out
3486
02:06:54,239 --> 02:06:56,480
on this. Um how do you incentivize
3487
02:06:56,480 --> 02:06:59,360
people? Um one, give them more good
3488
02:06:59,360 --> 02:07:01,599
stuff, take away bad stuff. So sometimes
3489
02:07:01,599 --> 02:07:02,719
it's like we really need to accelerate
3490
02:07:02,719 --> 02:07:03,679
cash flow. And then I ask the next
3491
02:07:03,679 --> 02:07:04,800
question like, well, what's the prepaid
3492
02:07:04,800 --> 02:07:05,679
incentive? They're like, well, I don't
3493
02:07:05,679 --> 02:07:07,280
have one. It's like, well, duh. There's
3494
02:07:07,280 --> 02:07:09,679
no incentive to prepay. So why why would
3495
02:07:09,679 --> 02:07:11,520
we be surprised that they're not doing
3496
02:07:11,520 --> 02:07:13,440
it, right? So we have to incentivize the
3497
02:07:13,440 --> 02:07:15,840
prepaid if we want accelerate cash flow.
3498
02:07:15,840 --> 02:07:17,840
This is just a specific pull out uh
3499
02:07:17,840 --> 02:07:19,360
guarantee with prepaid. I think this is
3500
02:07:19,360 --> 02:07:20,960
in the money models feature downell
3501
02:07:20,960 --> 02:07:23,360
section. Um this is one of the first
3502
02:07:23,360 --> 02:07:26,320
like super super strong uh prepayment
3503
02:07:26,320 --> 02:07:27,840
that you could uh structure that you can
3504
02:07:27,840 --> 02:07:29,760
offer. So if you offer a guarantee, not
3505
02:07:29,760 --> 02:07:31,119
all of you do, but if you do offer a
3506
02:07:31,119 --> 02:07:33,119
guarantee, you can say I'll give you the
3507
02:07:33,119 --> 02:07:36,239
guarantee if you prepay. And if they
3508
02:07:36,239 --> 02:07:38,639
don't prepay, you remove the guarantee.
3509
02:07:38,639 --> 02:07:42,880
Very compelling. Super compelling. Um,
3510
02:07:42,880 --> 02:07:44,480
so I recommend like really really
3511
02:07:44,480 --> 02:07:46,159
strong. If you're like, "How do I
3512
02:07:46,159 --> 02:07:49,199
accelerate it?" Pop that in. Um, upfront
3513
02:07:49,199 --> 02:07:51,199
fees. Obviously, this is where setup,
3514
02:07:51,199 --> 02:07:52,880
onboarding, onetime fees, all that kind
3515
02:07:52,880 --> 02:07:54,239
of stuff. You can just load it up. And
3516
02:07:54,239 --> 02:07:55,360
if you're like, "Do I need a reason to
3517
02:07:55,360 --> 02:07:57,119
have a onetime fee?" You just need
3518
02:07:57,119 --> 02:07:58,960
permission. You have you have the
3519
02:07:58,960 --> 02:08:00,880
world's permission to do it. You like
3520
02:08:00,880 --> 02:08:02,000
it's your business. You can make up your
3521
02:08:02,000 --> 02:08:04,639
own rules. Um, also, if you can get, you
3522
02:08:04,639 --> 02:08:06,159
know, third party uh, buy now pay later,
3523
02:08:06,159 --> 02:08:08,800
BNPL's. So, I had a firm at our last at
3524
02:08:08,800 --> 02:08:12,800
our at our event. Um, and so like you
3525
02:08:12,800 --> 02:08:14,719
will get typically you'll get about a
3526
02:08:14,719 --> 02:08:16,800
35% increase. That's that's based on a
3527
02:08:16,800 --> 02:08:17,840
firm stats. That's not what we got
3528
02:08:17,840 --> 02:08:19,280
because we have a more affluent
3529
02:08:19,280 --> 02:08:21,440
customer. Um, but a typical business
3530
02:08:21,440 --> 02:08:24,480
will get like a 35% boost in sales from
3531
02:08:24,480 --> 02:08:27,679
uh implementing some sort of BNPL.
3532
02:08:27,679 --> 02:08:29,280
And then this is the last I kind of did
3533
02:08:29,280 --> 02:08:32,480
these in order of complexity. Um, AR
3534
02:08:32,480 --> 02:08:34,400
financing. So I think Trent who's in the
3535
02:08:34,400 --> 02:08:36,639
scale advisory we we were you I called
3536
02:08:36,639 --> 02:08:39,840
you on Herozi hotline and uh you're in a
3537
02:08:39,840 --> 02:08:40,719
business like if you're in a
3538
02:08:40,719 --> 02:08:41,840
construction business you're in a
3539
02:08:41,840 --> 02:08:43,119
business that's very well understood by
3540
02:08:43,119 --> 02:08:45,119
a bank like a normal business if you
3541
02:08:45,119 --> 02:08:47,679
will um where you have like clear you
3542
02:08:47,679 --> 02:08:49,280
know outflows and the reliability of
3543
02:08:49,280 --> 02:08:50,480
payment like the likelihood that someone
3544
02:08:50,480 --> 02:08:52,560
pays you is super high then there
3545
02:08:52,560 --> 02:08:54,239
there's a whole divisions of banks that
3546
02:08:54,239 --> 02:08:55,599
do AR financing which is accounts
3547
02:08:55,599 --> 02:08:57,520
receivable financing and so I'll tell
3548
02:08:57,520 --> 02:08:59,280
you a story about this so there's a
3549
02:08:59,280 --> 02:09:00,800
company that um that I was looking at
3550
02:09:00,800 --> 02:09:04,320
investing in that was stuck at like I
3551
02:09:04,320 --> 02:09:05,599
want to say like two or three million
3552
02:09:05,599 --> 02:09:07,280
bucks a year and they had a bunch of
3553
02:09:07,280 --> 02:09:10,079
debt and they were really struggling and
3554
02:09:10,079 --> 02:09:13,440
I reached back out to the founder like
3555
02:09:13,440 --> 02:09:15,119
18 months later so a few months a few
3556
02:09:15,119 --> 02:09:16,880
months ago and I said hey man how's
3557
02:09:16,880 --> 02:09:18,480
business and he u he was like dude we're
3558
02:09:18,480 --> 02:09:19,840
killing it we're doing 5 million a month
3559
02:09:19,840 --> 02:09:21,440
so mind you this is like 18 months goes
3560
02:09:21,440 --> 02:09:22,960
from like two or three million bucks a
3561
02:09:22,960 --> 02:09:25,760
year to five million a month crazy and I
3562
02:09:25,760 --> 02:09:27,280
was like well what was the unlock he's
3563
02:09:27,280 --> 02:09:28,800
like honestly we got one of our vendors
3564
02:09:28,800 --> 02:09:31,760
to give us net 90 terms that was it
3565
02:09:31,760 --> 02:09:33,679
which function works exactly the same as
3566
02:09:33,679 --> 02:09:35,520
AR financing just done from a vendor
3567
02:09:35,520 --> 02:09:37,119
rather than a bank. But both of those
3568
02:09:37,119 --> 02:09:39,040
are things that you can negotiate. And
3569
02:09:39,040 --> 02:09:40,320
so I just I want to show you the
3570
02:09:40,320 --> 02:09:41,599
different pieces on the board. If you're
3571
02:09:41,599 --> 02:09:43,119
like, man, I've got the I've you know,
3572
02:09:43,119 --> 02:09:44,480
we got leads, we got sales, we got
3573
02:09:44,480 --> 02:09:45,599
profit. We just need to pull the cash
3574
02:09:45,599 --> 02:09:46,960
flow forward. If we had the cash flow,
3575
02:09:46,960 --> 02:09:48,480
we could scale. It's like, well, here's
3576
02:09:48,480 --> 02:09:51,360
seven different ways you can do it or
3577
02:09:51,360 --> 02:09:53,280
nine instead of Yeah, the second point
3578
02:09:53,280 --> 02:09:56,960
had three points. So more. All right. So
3579
02:09:56,960 --> 02:09:59,040
finally, you got the cash flow. You make
3580
02:09:59,040 --> 02:10:01,040
enough, but you slowly. We solve that.
3581
02:10:01,040 --> 02:10:03,760
Okay, so if money was the issue, right,
3582
02:10:03,760 --> 02:10:06,239
why can't you do more? Uh, if you can do
3583
02:10:06,239 --> 02:10:07,440
it. Can't do more because you don't have
3584
02:10:07,440 --> 02:10:08,560
your numbers. Well, now go get your
3585
02:10:08,560 --> 02:10:09,599
numbers. If you got your numbers, then
3586
02:10:09,599 --> 02:10:11,119
it's like, okay, my market's too small.
3587
02:10:11,119 --> 02:10:12,880
No, it's not. Okay, it's my model's the
3588
02:10:12,880 --> 02:10:14,159
issue. It's not worth it. The timeline,
3589
02:10:14,159 --> 02:10:15,520
my expectations. No, it is. I just need
3590
02:10:15,520 --> 02:10:17,440
to be more patient. Okay, cool. Money.
3591
02:10:17,440 --> 02:10:18,719
It's like, okay, leads are too
3592
02:10:18,719 --> 02:10:20,480
expensive. Sales aren't happening
3593
02:10:20,480 --> 02:10:22,079
enough. I don't have profit. I'm not
3594
02:10:22,079 --> 02:10:23,840
making enough per customer or cash flow
3595
02:10:23,840 --> 02:10:26,800
is my problem. Okay,
3596
02:10:26,800 --> 02:10:29,199
just solved all those. And so then
3597
02:10:29,199 --> 02:10:31,760
finally that leaves us with manpower.
3598
02:10:31,760 --> 02:10:33,599
Okay.
3599
02:10:33,599 --> 02:10:35,360
So that was that cool for part two. I
3600
02:10:35,360 --> 02:10:37,119
knew that one was like a little heavier.
3601
02:10:37,119 --> 02:10:40,960
I just don't want people to think uh um
3602
02:10:40,960 --> 02:10:42,239
I want to make sure that you guys feel
3603
02:10:42,239 --> 02:10:44,480
like I'm I'm delivering on on the value
3604
02:10:44,480 --> 02:10:47,520
promised. Um I want you to be very clear
3605
02:10:47,520 --> 02:10:50,639
on on your constraints.
3606
02:10:50,639 --> 02:10:53,199
And yeah, shout out to to Meg. Yeah. For
3607
02:10:53,199 --> 02:10:56,520
crushing it.
3608
02:11:00,079 --> 02:11:02,320
little I think time for a fresh a fresh
3609
02:11:02,320 --> 02:11:04,480
nicotine. Feels like it's that time,
3610
02:11:04,480 --> 02:11:07,599
doesn't it? Feels like it's that time.
3611
02:11:07,599 --> 02:11:11,480
No, I appreciate you guys.
3612
02:11:11,840 --> 02:11:14,719
Good. Yeah, I know. I was uh I was
3613
02:11:14,719 --> 02:11:18,320
talking fast. Um but I want to just cram
3614
02:11:18,320 --> 02:11:20,639
a lot in. You know, got a lot to cover
3615
02:11:20,639 --> 02:11:22,320
and I want you guys to get what you
3616
02:11:22,320 --> 02:11:26,480
want. All right. So,
3617
02:11:26,480 --> 02:11:28,719
part three,
3618
02:11:28,719 --> 02:11:30,639
supply based constraints. So, everything
3619
02:11:30,639 --> 02:11:31,840
up to this point is like, how do we get
3620
02:11:31,840 --> 02:11:35,800
more leads in the door? How do we
3621
02:11:37,440 --> 02:11:41,840
Let me find my big big black box. BBB.
3622
02:11:41,840 --> 02:11:44,639
My BBB. There's my big BB. All right.
3623
02:11:44,639 --> 02:11:47,599
Here we go. So, everything up to this
3624
02:11:47,599 --> 02:11:49,920
point has been this. How do we jam more
3625
02:11:49,920 --> 02:11:53,040
in the front end? Now,
3626
02:11:53,040 --> 02:11:54,480
sometimes you got to work on this stuff,
3627
02:11:54,480 --> 02:11:56,480
which is what some of these these mama
3628
02:11:56,480 --> 02:11:57,920
jambas are. But some of the other parts
3629
02:11:57,920 --> 02:11:59,440
in that black box are going to be supply
3630
02:11:59,440 --> 02:12:03,520
based constraints. Okay? So,
3631
02:12:03,520 --> 02:12:04,880
just from observing a lot of different
3632
02:12:04,880 --> 02:12:07,040
businesses, where do supply constraints
3633
02:12:07,040 --> 02:12:09,840
hit the hardest? So, uh, high volume,
3634
02:12:09,840 --> 02:12:12,320
low-wage roles. So, think like staffing,
3635
02:12:12,320 --> 02:12:14,079
social workers, like I would say
3636
02:12:14,079 --> 02:12:16,079
therapists, but just like people who
3637
02:12:16,079 --> 02:12:18,639
talk to elderly, um, you know, care
3638
02:12:18,639 --> 02:12:20,000
providers, like that kind of stuff
3639
02:12:20,000 --> 02:12:22,239
happens a lot in healthcare. Um, that's
3640
02:12:22,239 --> 02:12:23,360
where, you know, supply based
3641
02:12:23,360 --> 02:12:24,719
constraints, talent based constraints,
3642
02:12:24,719 --> 02:12:26,320
people based constraints hit hard.
3643
02:12:26,320 --> 02:12:28,800
Another kind of category is trades. So,
3644
02:12:28,800 --> 02:12:31,199
HVAC, plumbers, electricians, you know,
3645
02:12:31,199 --> 02:12:33,520
specific types of, you know, niche uh,
3646
02:12:33,520 --> 02:12:35,679
you know, welders, whatever, like a lot
3647
02:12:35,679 --> 02:12:37,920
of trades have this issue. uh where they
3648
02:12:37,920 --> 02:12:39,199
have supply constraints. They got the
3649
02:12:39,199 --> 02:12:40,320
business, they just can't they can't
3650
02:12:40,320 --> 02:12:42,719
service it. Um I got a buddy of mine
3651
02:12:42,719 --> 02:12:44,320
who's in the machine business. He just
3652
02:12:44,320 --> 02:12:46,800
builds machines. Kind of cool. Um he
3653
02:12:46,800 --> 02:12:48,400
just takes roles at like factories and
3654
02:12:48,400 --> 02:12:49,599
manufacturing and he just automates the
3655
02:12:49,599 --> 02:12:51,360
whole thing with big machines, but
3656
02:12:51,360 --> 02:12:53,199
that's a super specialized skill set.
3657
02:12:53,199 --> 02:12:54,719
Like I had dinner with him the other day
3658
02:12:54,719 --> 02:12:56,639
and he's like, I I had to turn down $13
3659
02:12:56,639 --> 02:12:58,000
million in projects because I just don't
3660
02:12:58,000 --> 02:12:59,440
have the people. And I was like, I'm
3661
02:12:59,440 --> 02:13:01,360
sorry. Uh and then we talk through the
3662
02:13:01,360 --> 02:13:03,440
framework I'm about to show you. Um
3663
02:13:03,440 --> 02:13:04,719
another one is high-end services,
3664
02:13:04,719 --> 02:13:07,440
high-end white collar services. So, um I
3665
02:13:07,440 --> 02:13:09,040
mean I'm in a business that has this
3666
02:13:09,040 --> 02:13:10,960
like high-end consulting which is what
3667
02:13:10,960 --> 02:13:14,000
we do. Uh accounting, legal, investing,
3668
02:13:14,000 --> 02:13:16,719
like these are super super hard to find,
3669
02:13:16,719 --> 02:13:19,440
very skilled people, right? So, these
3670
02:13:19,440 --> 02:13:20,719
are industries. So, if this is you,
3671
02:13:20,719 --> 02:13:22,079
you'll probably be nodding your head up
3672
02:13:22,079 --> 02:13:23,599
and down. And if you're not, you will
3673
02:13:23,599 --> 02:13:24,960
come up against this constraint. This is
3674
02:13:24,960 --> 02:13:26,560
just more commonly in the industries
3675
02:13:26,560 --> 02:13:28,800
that have it. Okay. So, this leads us to
3676
02:13:28,800 --> 02:13:30,000
question 10. Now, some of you guys might
3677
02:13:30,000 --> 02:13:31,599
have noticed that the dots across the
3678
02:13:31,599 --> 02:13:32,880
top did not fill in. And that's just
3679
02:13:32,880 --> 02:13:34,480
because I forgot to and I just realized
3680
02:13:34,480 --> 02:13:37,599
that. But we're making progress. All
3681
02:13:37,599 --> 02:13:40,320
right? And so we answer the question,
3682
02:13:40,320 --> 02:13:43,440
why can't we do more? It's because you
3683
02:13:43,440 --> 02:13:45,920
can't handle the volume, which is most
3684
02:13:45,920 --> 02:13:47,280
of the time manpower, sometimes
3685
02:13:47,280 --> 02:13:48,480
structural, and I'll cover that right
3686
02:13:48,480 --> 02:13:50,560
now. So here's some of the flavors of
3687
02:13:50,560 --> 02:13:52,880
manpower constraints. It's really hard
3688
02:13:52,880 --> 02:13:55,679
to find talent. I don't know how to do
3689
02:13:55,679 --> 02:13:58,960
it. Uh talent wants more than I can
3690
02:13:58,960 --> 02:14:01,440
afford. Like they want more money. uh
3691
02:14:01,440 --> 02:14:03,119
you don't have the money or the time to
3692
02:14:03,119 --> 02:14:04,560
find the talent which is sometimes a
3693
02:14:04,560 --> 02:14:06,560
little bit different. Um talent doesn't
3694
02:14:06,560 --> 02:14:08,639
solve my problem which I'll explain that
3695
02:14:08,639 --> 02:14:10,400
one um actually first and then I'll do
3696
02:14:10,400 --> 02:14:13,119
the rest. Okay, so uh this is what this
3697
02:14:13,119 --> 02:14:15,119
looks like. These are like symptoms of
3698
02:14:15,119 --> 02:14:17,199
manpower or supply constraints. So
3699
02:14:17,199 --> 02:14:19,119
weight list for services, you know,
3700
02:14:19,119 --> 02:14:20,639
maybe you're working 70 plus hours a
3701
02:14:20,639 --> 02:14:24,000
week personally in the business um and
3702
02:14:24,000 --> 02:14:25,760
you can't get any relief. Uh you're
3703
02:14:25,760 --> 02:14:27,119
turning away qualified customers like
3704
02:14:27,119 --> 02:14:28,320
the machine shop I was just talking
3705
02:14:28,320 --> 02:14:30,960
about. Uh this one this one's super big.
3706
02:14:30,960 --> 02:14:33,440
Uh quality declining due to volume. So
3707
02:14:33,440 --> 02:14:34,880
this happens a ton in like marketing
3708
02:14:34,880 --> 02:14:37,440
agencies and stuff. It's like uh they'll
3709
02:14:37,440 --> 02:14:38,719
just like you know they'll get really
3710
02:14:38,719 --> 02:14:40,400
good at selling and then they just like
3711
02:14:40,400 --> 02:14:42,079
hire bodies on the back end and then all
3712
02:14:42,079 --> 02:14:43,360
of a sudden people turn out the back
3713
02:14:43,360 --> 02:14:45,199
because the quality suffers because they
3714
02:14:45,199 --> 02:14:46,800
don't have good enough people. Right? So
3715
02:14:46,800 --> 02:14:49,679
what what appears to be a oh we you know
3716
02:14:49,679 --> 02:14:50,880
we can't spend more to get customers
3717
02:14:50,880 --> 02:14:51,840
actually we're not making enough money
3718
02:14:51,840 --> 02:14:53,040
from customers which is actually a
3719
02:14:53,040 --> 02:14:54,560
manpower issue. Right? And so this is
3720
02:14:54,560 --> 02:14:56,400
why I'm saying like it's usually it's
3721
02:14:56,400 --> 02:14:58,159
not like the big obvious problems most
3722
02:14:58,159 --> 02:15:00,159
people identify. It's the second and
3723
02:15:00,159 --> 02:15:02,159
third and fourth order problems that
3724
02:15:02,159 --> 02:15:03,520
people kind of get lost in which is why
3725
02:15:03,520 --> 02:15:04,719
I'm trying to walk as many of these
3726
02:15:04,719 --> 02:15:07,920
examples out as we do this live. Okay.
3727
02:15:07,920 --> 02:15:11,360
Uh the last one is uh uh your your staff
3728
02:15:11,360 --> 02:15:13,760
is fully utilized but uh you still can't
3729
02:15:13,760 --> 02:15:15,040
keep up. All right. So let me explain
3730
02:15:15,040 --> 02:15:18,800
what that one is. And so this is like a
3731
02:15:18,800 --> 02:15:21,360
huge epiphany I had that I want to share
3732
02:15:21,360 --> 02:15:23,119
with you and I like I've never seen
3733
02:15:23,119 --> 02:15:24,719
anyone else talk about this so I feel
3734
02:15:24,719 --> 02:15:27,520
very confident saying like nothing I
3735
02:15:27,520 --> 02:15:28,800
don't know it doesn't matter what who
3736
02:15:28,800 --> 02:15:30,800
cares I'll die no one no one people like
3737
02:15:30,800 --> 02:15:34,560
he had slideshows anyways uh so so since
3738
02:15:34,560 --> 02:15:37,280
manpower means employees it just means a
3739
02:15:37,280 --> 02:15:39,119
different type of customer becomes the
3740
02:15:39,119 --> 02:15:42,560
target so if you are supply constrained
3741
02:15:42,560 --> 02:15:44,480
it means you're just demand constrained
3742
02:15:44,480 --> 02:15:46,320
for employees think about what that
3743
02:15:46,320 --> 02:15:48,000
shift means. You're either demand
3744
02:15:48,000 --> 02:15:49,599
constrained for customers or demand
3745
02:15:49,599 --> 02:15:52,320
constrained for employees.
3746
02:15:52,320 --> 02:15:54,000
And so every business is demand
3747
02:15:54,000 --> 02:15:56,159
constrained in one way or another. And
3748
02:15:56,159 --> 02:15:57,760
so getting you to see this is basically
3749
02:15:57,760 --> 02:16:00,079
the entire point of this section. But I
3750
02:16:00,079 --> 02:16:02,719
really want to drive this home. Okay? So
3751
02:16:02,719 --> 02:16:06,159
instead of LTV to CAC ratios, you need
3752
02:16:06,159 --> 02:16:09,119
to learn something that I call LTGP
3753
02:16:09,119 --> 02:16:11,840
to CAT ratios, which is lifetime gross
3754
02:16:11,840 --> 02:16:14,800
profit per employee to cost of acquiring
3755
02:16:14,800 --> 02:16:16,560
talent. So many guys know what your
3756
02:16:16,560 --> 02:16:18,639
rorowes is, your LTV to CAC ratio is,
3757
02:16:18,639 --> 02:16:19,760
which you should if you watch any of my
3758
02:16:19,760 --> 02:16:21,199
stuff for the love of God. Please know
3759
02:16:21,199 --> 02:16:23,520
what those numbers are. But a leveled up
3760
02:16:23,520 --> 02:16:25,360
version of this is what does it cost me
3761
02:16:25,360 --> 02:16:27,599
to get talent and what do I make on that
3762
02:16:27,599 --> 02:16:30,599
talent?
3763
02:16:31,199 --> 02:16:34,160
So let me tell you a little story. So um
3764
02:16:34,160 --> 02:16:37,359
mentor, old old guy had an insurance
3765
02:16:37,359 --> 02:16:39,359
company, sold it for a zillion dollars,
3766
02:16:39,359 --> 02:16:42,399
doesn't matter. And he told me that he'd
3767
02:16:42,399 --> 02:16:43,840
been stuck at like $10 million a year
3768
02:16:43,840 --> 02:16:46,000
for like many years. And he said, 'You
3769
02:16:46,000 --> 02:16:47,120
want to know what broke me out of it?
3770
02:16:47,120 --> 02:16:48,639
And I was like,"Well, yeah, obviously I
3771
02:16:48,639 --> 02:16:50,319
want to know." He said, "So what
3772
02:16:50,319 --> 02:16:52,240
happened was I used to have this,"
3773
02:16:52,240 --> 02:16:54,080
because he had this uh it was insurance.
3774
02:16:54,080 --> 02:16:55,679
So he has a a bunch of agents, right,
3775
02:16:55,679 --> 02:16:57,439
that work work selling insurance
3776
02:16:57,439 --> 02:17:00,800
products. And so he said, "So what I did
3777
02:17:00,800 --> 02:17:02,479
was uh we used to have this referral
3778
02:17:02,479 --> 02:17:05,439
bonus. So agents could get $500 if they
3779
02:17:05,439 --> 02:17:06,880
referred another agent. That makes
3780
02:17:06,880 --> 02:17:10,479
sense. That's cool. but it wasn't really
3781
02:17:10,479 --> 02:17:12,080
driving anything. And some of you guys
3782
02:17:12,080 --> 02:17:13,439
have the same thing. You probably give
3783
02:17:13,439 --> 02:17:16,240
some sort of, you know, bonus for, you
3784
02:17:16,240 --> 02:17:17,679
know, or hopefully you give some sort of
3785
02:17:17,679 --> 02:17:19,280
bonus if if someone in your team refers
3786
02:17:19,280 --> 02:17:20,719
you somebody else. By the way, so much
3787
02:17:20,719 --> 02:17:22,639
more valuable than getting a customer
3788
02:17:22,639 --> 02:17:24,399
referral.
3789
02:17:24,399 --> 02:17:27,679
So, he did the math and I think I showed
3790
02:17:27,679 --> 02:17:29,120
the next slide. Did I show the next?
3791
02:17:29,120 --> 02:17:31,679
Let's see here. Do I show it here? Yeah.
3792
02:17:31,679 --> 02:17:34,399
So he figured out that he said, "I make
3793
02:17:34,399 --> 02:17:37,519
250,000 a year in gross profit per uh
3794
02:17:37,519 --> 02:17:39,519
not technician but per per insurance
3795
02:17:39,519 --> 02:17:42,800
agent, right?" And so that was per
3796
02:17:42,800 --> 02:17:44,960
activated insurance agent. And so he was
3797
02:17:44,960 --> 02:17:46,240
like, I was trying to get people
3798
02:17:46,240 --> 02:17:49,840
incentivized to send me agents for 500
3799
02:17:49,840 --> 02:17:52,960
bucks. And so then he took his $500
3800
02:17:52,960 --> 02:17:55,599
commission and made it 25,000
3801
02:17:55,599 --> 02:17:57,280
and said, "If you bring me an agent,
3802
02:17:57,280 --> 02:18:00,319
I'll give you 25 grand." And guess what
3803
02:18:00,319 --> 02:18:02,960
happened? it worked and he sold his
3804
02:18:02,960 --> 02:18:04,399
company for hundreds of zillions of
3805
02:18:04,399 --> 02:18:06,479
dollars many years later because he was
3806
02:18:06,479 --> 02:18:10,160
able to compound his supply base. And so
3807
02:18:10,160 --> 02:18:12,000
taking that into account, I had a
3808
02:18:12,000 --> 02:18:13,519
conversation with my team and I was
3809
02:18:13,519 --> 02:18:16,880
like, "Hey man, we need more um we need
3810
02:18:16,880 --> 02:18:19,840
more media people, right?" And so the
3811
02:18:19,840 --> 02:18:21,760
the fastest and easiest thing I did was
3812
02:18:21,760 --> 02:18:22,800
I was like, "Well, how much do we make
3813
02:18:22,800 --> 02:18:25,200
on a media person?" Okay, well, am I
3814
02:18:25,200 --> 02:18:27,519
willing to pay a tenth of that in order
3815
02:18:27,519 --> 02:18:30,000
to to go get them? And it's like, well,
3816
02:18:30,000 --> 02:18:31,439
yeah. Well, if we think about it from
3817
02:18:31,439 --> 02:18:33,519
like a stock market perspective, like
3818
02:18:33,519 --> 02:18:35,840
would I be willing to get a 10x return
3819
02:18:35,840 --> 02:18:39,280
on money? Of course. Yeah, I'm in. So,
3820
02:18:39,280 --> 02:18:41,679
we just have to think about the talent
3821
02:18:41,679 --> 02:18:43,599
as a return that we're going to get on.
3822
02:18:43,599 --> 02:18:46,479
But the caveat is you just have to put
3823
02:18:46,479 --> 02:18:48,319
milestones. And so, I'd say it's not go
3824
02:18:48,319 --> 02:18:49,760
refer me a friend and I'll just give you
3825
02:18:49,760 --> 02:18:52,479
25 grand. It's I'll give you 25 grand at
3826
02:18:52,479 --> 02:18:54,479
month six once they're activated. And
3827
02:18:54,479 --> 02:18:55,920
what's cool about that is that at that
3828
02:18:55,920 --> 02:18:58,000
point, you actually get both people who
3829
02:18:58,000 --> 02:19:00,160
are invested in being successful. So now
3830
02:19:00,160 --> 02:19:01,599
you've got this person who's taking a
3831
02:19:01,599 --> 02:19:03,679
lot of interest, the person who referred
3832
02:19:03,679 --> 02:19:06,160
the referer rather than the referee,
3833
02:19:06,160 --> 02:19:08,000
right? The referer takes a lot of
3834
02:19:08,000 --> 02:19:09,280
interest in the referee getting
3835
02:19:09,280 --> 02:19:10,880
onboarded and they kind of provide that
3836
02:19:10,880 --> 02:19:12,240
additional training, additional context
3837
02:19:12,240 --> 02:19:13,280
and they increase the likelihood of
3838
02:19:13,280 --> 02:19:15,200
success. So not only do you get this
3839
02:19:15,200 --> 02:19:17,359
amazing return, you also get that person
3840
02:19:17,359 --> 02:19:18,639
integrated better. They get trained
3841
02:19:18,639 --> 02:19:20,080
better and so it's just a win overall.
3842
02:19:20,080 --> 02:19:22,000
And so this is a huge place of returns
3843
02:19:22,000 --> 02:19:24,319
that I think is wildly underlooked. Um,
3844
02:19:24,319 --> 02:19:25,760
and if you are a supply constraint
3845
02:19:25,760 --> 02:19:26,960
business, this is where your capital
3846
02:19:26,960 --> 02:19:30,080
should be going.
3847
02:19:30,080 --> 02:19:33,760
So, this is a this is a huge point that
3848
02:19:33,760 --> 02:19:35,439
again, I think it's like 75% of y'all
3849
02:19:35,439 --> 02:19:37,599
are service businesses to some degree.
3850
02:19:37,599 --> 02:19:38,960
Um, and that's normal because that's
3851
02:19:38,960 --> 02:19:40,240
just what what it is, at least in the US
3852
02:19:40,240 --> 02:19:43,760
economy. Um,
3853
02:19:43,760 --> 02:19:46,080
service businesses have have a they're
3854
02:19:46,080 --> 02:19:48,720
double-edged sword. So, they're really
3855
02:19:48,720 --> 02:19:52,560
easy to start, more difficult to scale,
3856
02:19:52,560 --> 02:19:54,240
and they require almost no capital to
3857
02:19:54,240 --> 02:19:55,920
start. And they tend to produce decent
3858
02:19:55,920 --> 02:19:57,280
amounts of cash flow. If you like our
3859
02:19:57,280 --> 02:19:58,960
decent business and the economics and
3860
02:19:58,960 --> 02:20:00,319
you follow the stuff that we talk about
3861
02:20:00,319 --> 02:20:01,680
like you should produce a lot of cash
3862
02:20:01,680 --> 02:20:03,920
flow in a service business. Now the
3863
02:20:03,920 --> 02:20:06,399
question is how do you reinvest in a
3864
02:20:06,399 --> 02:20:08,960
service business right like in a in an
3865
02:20:08,960 --> 02:20:10,160
e-commerce business physical product
3866
02:20:10,160 --> 02:20:11,439
business you have inventory really clear
3867
02:20:11,439 --> 02:20:12,560
right you have raw materials really
3868
02:20:12,560 --> 02:20:14,240
clear if you were in a technology
3869
02:20:14,240 --> 02:20:15,600
business it's like okay I'm going to go
3870
02:20:15,600 --> 02:20:17,439
we got to go reinvest by hiring more
3871
02:20:17,439 --> 02:20:20,720
developers etc right so what do you do
3872
02:20:20,720 --> 02:20:25,720
in a service business to reinvest
3873
02:20:26,560 --> 02:20:31,040
two things brand and talent
3874
02:20:31,040 --> 02:20:32,479
which means what are the associations
3875
02:20:32,479 --> 02:20:33,680
we're going to make today. How are we
3876
02:20:33,680 --> 02:20:35,520
going to pair our business with
3877
02:20:35,520 --> 02:20:38,080
aspirational outcomes that our avatar
3878
02:20:38,080 --> 02:20:43,040
finds meaningful brand and how are we
3879
02:20:43,040 --> 02:20:44,720
going to spend money on training our
3880
02:20:44,720 --> 02:20:47,200
existing talent and recruiting new
3881
02:20:47,200 --> 02:20:49,040
talent so we can get the highest returns
3882
02:20:49,040 --> 02:20:51,280
possible on our core asset? Because if
3883
02:20:51,280 --> 02:20:52,800
you're a service business, you
3884
02:20:52,800 --> 02:20:55,359
fundamentally sell people at a profit.
3885
02:20:55,359 --> 02:20:57,439
It's what it is, right? You sell labor
3886
02:20:57,439 --> 02:20:59,680
and you have a markup. That's service.
3887
02:20:59,680 --> 02:21:01,840
And so what we want to do is have more
3888
02:21:01,840 --> 02:21:03,920
of those nodes and we want those nodes
3889
02:21:03,920 --> 02:21:06,080
to be able to expand what you can charge
3890
02:21:06,080 --> 02:21:07,840
for them. And you can expand what you
3891
02:21:07,840 --> 02:21:09,359
can charge for them by having more
3892
02:21:09,359 --> 02:21:13,200
skilled talent. That's the idea. And the
3893
02:21:13,200 --> 02:21:14,800
biggest arbitrage comes from being able
3894
02:21:14,800 --> 02:21:17,200
to take lowkilled talent, train them
3895
02:21:17,200 --> 02:21:20,000
well, continue to pay them at old talent
3896
02:21:20,000 --> 02:21:21,680
numbers, and then because of the
3897
02:21:21,680 --> 02:21:23,760
training, capture the arbitrage in
3898
02:21:23,760 --> 02:21:25,439
value.
3899
02:21:25,439 --> 02:21:27,840
That is how you reinvest in a
3900
02:21:27,840 --> 02:21:28,960
service-based business. So, if you're
3901
02:21:28,960 --> 02:21:30,479
like, "What do I do with this extra
3902
02:21:30,479 --> 02:21:31,840
money at the end of the year?" Well, if
3903
02:21:31,840 --> 02:21:33,200
you don't want to pay taxes on some of
3904
02:21:33,200 --> 02:21:34,800
it, you can choose to reinvest in the
3905
02:21:34,800 --> 02:21:37,359
business by doing this.
3906
02:21:37,359 --> 02:21:39,680
And so, the moral of this is that maybe
3907
02:21:39,680 --> 02:21:42,080
you can't afford not to get better
3908
02:21:42,080 --> 02:21:44,640
talent for your business. And that's
3909
02:21:44,640 --> 02:21:46,720
what you need to focus on. That's your
3910
02:21:46,720 --> 02:21:48,880
demand constraint.
3911
02:21:48,880 --> 02:21:51,120
And so, this just took me a very long
3912
02:21:51,120 --> 02:21:52,399
time to piece together, which is that
3913
02:21:52,399 --> 02:21:54,640
manpower means every business is demand
3914
02:21:54,640 --> 02:21:56,800
constrained. All right. Now, let me just
3915
02:21:56,800 --> 02:21:58,560
show you how crazy this is and how deep
3916
02:21:58,560 --> 02:22:01,280
this goes. Okay,
3917
02:22:01,280 --> 02:22:03,840
so we have our external ways of
3918
02:22:03,840 --> 02:22:05,120
advertising, right? You got the core
3919
02:22:05,120 --> 02:22:06,479
four, you got lead getters on the left,
3920
02:22:06,479 --> 02:22:07,520
right? You got warm outreach, cold
3921
02:22:07,520 --> 02:22:08,880
outreach, post free content, run paid
3922
02:22:08,880 --> 02:22:10,479
ads, you got customer referrals,
3923
02:22:10,479 --> 02:22:12,240
affiliates, employees, agencies, all
3924
02:22:12,240 --> 02:22:13,280
that stuff. You guys should already know
3925
02:22:13,280 --> 02:22:15,600
that's inside the leads book. Then you
3926
02:22:15,600 --> 02:22:17,120
have your internal version of these,
3927
02:22:17,120 --> 02:22:18,560
which is you ask your network, you do
3928
02:22:18,560 --> 02:22:20,640
cold outreach, you post to your network,
3929
02:22:20,640 --> 02:22:22,800
you promote job postings, right? You get
3930
02:22:22,800 --> 02:22:24,800
employee referrals. You go to community
3931
02:22:24,800 --> 02:22:27,280
owners who have like HR professionals or
3932
02:22:27,280 --> 02:22:30,160
SDRs or sales professionals, right? You
3933
02:22:30,160 --> 02:22:31,920
have an in-house recruiter or you go to
3934
02:22:31,920 --> 02:22:33,840
out ofhouse head hunters and staffing
3935
02:22:33,840 --> 02:22:36,800
firms. It's the same concept, just
3936
02:22:36,800 --> 02:22:38,720
different names. All right? Because
3937
02:22:38,720 --> 02:22:40,479
you're either demand constrained for
3938
02:22:40,479 --> 02:22:42,479
customers or your demand constraint for
3939
02:22:42,479 --> 02:22:44,560
talent. And the good news is you solve
3940
02:22:44,560 --> 02:22:47,200
both with advertising.
3941
02:22:47,200 --> 02:22:48,960
And better yet, the processes are
3942
02:22:48,960 --> 02:22:50,720
literally parallel. All right, we're
3943
02:22:50,720 --> 02:22:51,840
talking dirt here. We're getting
3944
02:22:51,840 --> 02:22:54,479
tactical. All right. So, you should all
3945
02:22:54,479 --> 02:22:56,000
be familiar with this, which is a
3946
02:22:56,000 --> 02:22:57,520
marketing customer acquisition funnel.
3947
02:22:57,520 --> 02:22:59,040
You've got some sort of lead generation.
3948
02:22:59,040 --> 02:23:00,479
You got some sort of lead nurture. You
3949
02:23:00,479 --> 02:23:01,760
got some sort of sales. You got some
3950
02:23:01,760 --> 02:23:03,280
sort of onboarding. And you got some
3951
02:23:03,280 --> 02:23:04,800
sort of retention and ascension, right?
3952
02:23:04,800 --> 02:23:06,399
Try to get a keep them to buy again or
3953
02:23:06,399 --> 02:23:08,399
to buy more expensive stuff, right? All
3954
02:23:08,399 --> 02:23:10,720
this should should should make sense.
3955
02:23:10,720 --> 02:23:12,640
Next,
3956
02:23:12,640 --> 02:23:14,880
you have your application generation.
3957
02:23:14,880 --> 02:23:17,120
Think about the words change here. Lead
3958
02:23:17,120 --> 02:23:20,319
gen application generation.
3959
02:23:20,319 --> 02:23:22,240
You've got applicant nurture, so
3960
02:23:22,240 --> 02:23:23,920
different than lead nurture. You've got
3961
02:23:23,920 --> 02:23:26,160
interviews, not sales. You've got
3962
02:23:26,160 --> 02:23:28,240
onboarding, wait, that's the same word.
3963
02:23:28,240 --> 02:23:29,760
You've got retention and ascension.
3964
02:23:29,760 --> 02:23:32,160
Wait, those are the same words. It's the
3965
02:23:32,160 --> 02:23:34,080
same thing because you have people going
3966
02:23:34,080 --> 02:23:36,880
through the process on either side. This
3967
02:23:36,880 --> 02:23:39,920
took me a very long time to figure out.
3968
02:23:39,920 --> 02:23:41,520
And what's crazy is that if you can do
3969
02:23:41,520 --> 02:23:43,280
one of these well, you can do both of
3970
02:23:43,280 --> 02:23:44,800
them well. So if you have a way of
3971
02:23:44,800 --> 02:23:46,880
getting customers, you also already have
3972
02:23:46,880 --> 02:23:48,560
the skills to get the talent you need if
3973
02:23:48,560 --> 02:23:50,880
you are supply constrainted.
3974
02:23:50,880 --> 02:23:53,280
So like before we started with the Mosy
3975
02:23:53,280 --> 02:23:54,640
6, right? You got more. Why can't we do
3976
02:23:54,640 --> 02:23:56,240
more? And we got metrics, market, model,
3977
02:23:56,240 --> 02:23:58,000
money, and manpower. All we do is we
3978
02:23:58,000 --> 02:23:59,439
take manpower, put it at the front of
3979
02:23:59,439 --> 02:24:00,880
this thing, and we just run it through
3980
02:24:00,880 --> 02:24:03,200
again. Okay, so it's the exact same
3981
02:24:03,200 --> 02:24:04,880
path.
3982
02:24:04,880 --> 02:24:06,880
So
3983
02:24:06,880 --> 02:24:08,720
why can't we do more warm outreach,
3984
02:24:08,720 --> 02:24:10,240
which is how you currently were getting,
3985
02:24:10,240 --> 02:24:12,080
you know, people? Can we do more? Why
3986
02:24:12,080 --> 02:24:14,080
can't we do more cold outreach aka
3987
02:24:14,080 --> 02:24:15,920
recruiting? Why can't we do more posting
3988
02:24:15,920 --> 02:24:17,359
content? Can we post more on job
3989
02:24:17,359 --> 02:24:19,200
postings? Can we post more places or
3990
02:24:19,200 --> 02:24:20,800
spend more on it? Right? Which is then
3991
02:24:20,800 --> 02:24:22,479
promoting those job postings, right?
3992
02:24:22,479 --> 02:24:23,760
Which is the paid ads version for
3993
02:24:23,760 --> 02:24:25,680
recruiting. Can we get more employee
3994
02:24:25,680 --> 02:24:28,000
referrals? Can we get more affiliates
3995
02:24:28,000 --> 02:24:30,240
aka associations, guilds, list serves,
3996
02:24:30,240 --> 02:24:32,160
community owners, right? Can we get
3997
02:24:32,160 --> 02:24:34,080
agencies aka recruiters and staffing
3998
02:24:34,080 --> 02:24:36,000
firms? Can we get employees aka this
3999
02:24:36,000 --> 02:24:37,280
one's unchanged, right? Your your team
4000
02:24:37,280 --> 02:24:39,280
would do this for you, right? And so all
4001
02:24:39,280 --> 02:24:41,680
eight of these, can we do more of this
4002
02:24:41,680 --> 02:24:44,319
before we do anything else?
4003
02:24:44,319 --> 02:24:47,359
If so, let's do that.
4004
02:24:47,359 --> 02:24:49,600
If not, we go down the metrics again,
4005
02:24:49,600 --> 02:24:51,280
which is okay, we can't do more because
4006
02:24:51,280 --> 02:24:52,560
we don't know our numbers or people
4007
02:24:52,560 --> 02:24:53,680
aren't the limiting metrics. I'll give
4008
02:24:53,680 --> 02:24:55,439
you an example of of the second part.
4009
02:24:55,439 --> 02:24:57,200
So, uh, there was a restaurant that we
4010
02:24:57,200 --> 02:24:58,720
looked at that had two-hour wait times.
4011
02:24:58,720 --> 02:25:00,720
We did a cash cows episode with them.
4012
02:25:00,720 --> 02:25:03,120
Um, and so they literally had limited
4013
02:25:03,120 --> 02:25:04,240
their four walls. So, what do you do?
4014
02:25:04,240 --> 02:25:05,760
They're they're supply constrained.
4015
02:25:05,760 --> 02:25:07,520
Well, you can expand your seating. You
4016
02:25:07,520 --> 02:25:09,120
can optimize your operations turntables
4017
02:25:09,120 --> 02:25:10,960
faster. You can change your hours,
4018
02:25:10,960 --> 02:25:13,200
expand your hours, or you can do a
4019
02:25:13,200 --> 02:25:14,479
combination of that where you just raise
4020
02:25:14,479 --> 02:25:16,800
prices during peaks,
4021
02:25:16,800 --> 02:25:19,280
right? And so pricing is going to be a
4022
02:25:19,280 --> 02:25:20,399
big lever that you can pull if you're
4023
02:25:20,399 --> 02:25:21,520
supply constrained. If you have more
4024
02:25:21,520 --> 02:25:23,439
business you can handle, raise price.
4025
02:25:23,439 --> 02:25:24,880
Very simple. And I'll talk I'll talk
4026
02:25:24,880 --> 02:25:27,120
about kind of like solution stacks in a
4027
02:25:27,120 --> 02:25:29,920
second, but this is an example of either
4028
02:25:29,920 --> 02:25:31,359
uh you don't know your numbers or people
4029
02:25:31,359 --> 02:25:32,960
aren't the limiting metric. Then do
4030
02:25:32,960 --> 02:25:34,720
this, change the other variables, change
4031
02:25:34,720 --> 02:25:36,880
the walls.
4032
02:25:36,880 --> 02:25:39,200
The next one's market. Same as before,
4033
02:25:39,200 --> 02:25:40,800
right? Because there's not enough people
4034
02:25:40,800 --> 02:25:43,120
in Kentucky, you know, where I live that
4035
02:25:43,120 --> 02:25:45,520
are, you know, grade three welders. I
4036
02:25:45,520 --> 02:25:47,040
don't know. Is there a way that they can
4037
02:25:47,040 --> 02:25:49,200
do this job remotely? Uh, is it
4038
02:25:49,200 --> 02:25:50,800
impossible to get these people or is it
4039
02:25:50,800 --> 02:25:53,040
expensive or can we add an incentive
4040
02:25:53,040 --> 02:25:55,520
like a moving bonus? Right? So, we had a
4041
02:25:55,520 --> 02:25:57,040
a roofing company owner that was
4042
02:25:57,040 --> 02:25:58,160
talking. He was expanding new locations
4043
02:25:58,160 --> 02:25:59,600
and he couldn't get a manager for the
4044
02:25:59,600 --> 02:26:01,600
new location. And he was like, "Man, you
4045
02:26:01,600 --> 02:26:02,800
know, it's really hard to find people
4046
02:26:02,800 --> 02:26:04,800
out there. And I was like, "Well, do you
4047
02:26:04,800 --> 02:26:06,240
have like multiple managers in your
4048
02:26:06,240 --> 02:26:08,319
current staff?" He said, "Yeah, but you
4049
02:26:08,319 --> 02:26:09,439
know, they don't want to move." I was
4050
02:26:09,439 --> 02:26:11,680
like, "Will they move for 20 grand?"
4051
02:26:11,680 --> 02:26:13,120
He's like, "I never really thought of
4052
02:26:13,120 --> 02:26:13,920
that." And I was like, "Well, how much
4053
02:26:13,920 --> 02:26:14,960
you going to make on the location?" He
4054
02:26:14,960 --> 02:26:16,240
was like, "Well, we probably make 500
4055
02:26:16,240 --> 02:26:17,359
grand a year in profit." And I was like,
4056
02:26:17,359 --> 02:26:19,520
"So, do you think 20 grand's worth it?"
4057
02:26:19,520 --> 02:26:21,680
He's like, "Yeah, I guess so. Is it
4058
02:26:21,680 --> 02:26:27,000
impossible or is it expensive?" Right?
4059
02:26:27,120 --> 02:26:29,280
I'll give you a different one. So, this
4060
02:26:29,280 --> 02:26:31,120
was a cash episode. Not cash, excuse me,
4061
02:26:31,120 --> 02:26:33,280
a hero hotline I did. a month or two
4062
02:26:33,280 --> 02:26:35,200
ago. So, there's a martial arts guy
4063
02:26:35,200 --> 02:26:38,319
who's got three martial arts gyms and he
4064
02:26:38,319 --> 02:26:39,840
says, "Hey, it's really hard to find
4065
02:26:39,840 --> 02:26:42,399
salespeople with black belts."
4066
02:26:42,399 --> 02:26:44,800
And so, I was like, "Yeah, I I believe
4067
02:26:44,800 --> 02:26:47,439
you." And so, remember at the very
4068
02:26:47,439 --> 02:26:48,960
beginning I said, "You can you want to
4069
02:26:48,960 --> 02:26:51,680
hire for the lowest skill aptitude?" So
4070
02:26:51,680 --> 02:26:53,520
all we did was I said, 'Hey, why don't
4071
02:26:53,520 --> 02:26:55,439
you just find black belts and teach them
4072
02:26:55,439 --> 02:26:57,280
how to sell because it's going to take
4073
02:26:57,280 --> 02:26:59,520
way less time to teach them how to sell
4074
02:26:59,520 --> 02:27:00,720
who's got a black belt than teach
4075
02:27:00,720 --> 02:27:02,960
someone how to how to black belt who can
4076
02:27:02,960 --> 02:27:05,600
sell, right? And so that was the issue.
4077
02:27:05,600 --> 02:27:07,280
So we had to solve for the small skill
4078
02:27:07,280 --> 02:27:08,800
discrepancy and then all of a sudden it
4079
02:27:08,800 --> 02:27:10,640
was like boom, he opened up his uh his
4080
02:27:10,640 --> 02:27:11,920
whole funnel for doing this for his
4081
02:27:11,920 --> 02:27:13,680
business and expanding, right? So we
4082
02:27:13,680 --> 02:27:14,960
sometimes you're actually just looking
4083
02:27:14,960 --> 02:27:16,720
for the wrong avatar. It's really hard
4084
02:27:16,720 --> 02:27:18,880
to find sales people that you can then
4085
02:27:18,880 --> 02:27:20,800
teach the black belt thing or finding
4086
02:27:20,800 --> 02:27:21,920
sales people who are already black
4087
02:27:21,920 --> 02:27:24,160
belts. Might be hard to find both. We
4088
02:27:24,160 --> 02:27:25,840
have to then say, "Okay, let's get 80%
4089
02:27:25,840 --> 02:27:27,120
of the way there and then we can train
4090
02:27:27,120 --> 02:27:28,960
the other 20."
4091
02:27:28,960 --> 02:27:31,680
So, that's a market issue.
4092
02:27:31,680 --> 02:27:33,200
Now, if you're like, "Okay, I can't get
4093
02:27:33,200 --> 02:27:36,240
more talent in my business because um
4094
02:27:36,240 --> 02:27:37,600
the basically you probably wouldn't say
4095
02:27:37,600 --> 02:27:38,880
this, but basically you're not getting
4096
02:27:38,880 --> 02:27:41,520
responses, right? like uh the offer is
4097
02:27:41,520 --> 02:27:43,920
wrong. Even if I basically this is gets
4098
02:27:43,920 --> 02:27:45,120
a little bit more to model, which is why
4099
02:27:45,120 --> 02:27:46,720
it's model. Uh but I'll get an example
4100
02:27:46,720 --> 02:27:48,560
to drive this home. So I had a physical
4101
02:27:48,560 --> 02:27:51,120
therapy business who um who came in
4102
02:27:51,120 --> 02:27:54,240
really nice lady and uh they were fully
4103
02:27:54,240 --> 02:27:56,080
like all four walls are booked out, all
4104
02:27:56,080 --> 02:27:57,760
the beds are taken, but they weren't
4105
02:27:57,760 --> 02:27:58,880
making any money. But I was like, "Wait
4106
02:27:58,880 --> 02:28:00,240
a second. So you're like you're selling
4107
02:28:00,240 --> 02:28:02,160
fine, you know, you're the leads are
4108
02:28:02,160 --> 02:28:03,359
good, all all this stuff's good." I was
4109
02:28:03,359 --> 02:28:04,160
like, "But you're not making money and
4110
02:28:04,160 --> 02:28:04,960
you're fully staffed." She's like,
4111
02:28:04,960 --> 02:28:06,720
"Yeah." And I kept diving and diving. I
4112
02:28:06,720 --> 02:28:08,160
had to go through all of this stuff
4113
02:28:08,160 --> 02:28:10,240
until I finally got all the way into
4114
02:28:10,240 --> 02:28:12,880
manpower and it was oh yeah well we give
4115
02:28:12,880 --> 02:28:15,840
50% of revenue to our therapists. I was
4116
02:28:15,840 --> 02:28:19,359
like 50 dude like yeah of course you're
4117
02:28:19,359 --> 02:28:20,800
not making anything that makes I was
4118
02:28:20,800 --> 02:28:22,000
like are they like marketing for
4119
02:28:22,000 --> 02:28:23,680
themselves and and like you know paying
4120
02:28:23,680 --> 02:28:25,200
for their own you know products and
4121
02:28:25,200 --> 02:28:26,880
stuff. She was like no we do all that. I
4122
02:28:26,880 --> 02:28:28,000
was like well are they doing the sales?
4123
02:28:28,000 --> 02:28:29,280
She's like no no we do that. I was like
4124
02:28:29,280 --> 02:28:30,960
wait so you literally do everything and
4125
02:28:30,960 --> 02:28:32,479
then just give them half. She's like
4126
02:28:32,479 --> 02:28:33,840
yeah. I was like well yeah so you have a
4127
02:28:33,840 --> 02:28:35,760
structural issue right? like the model
4128
02:28:35,760 --> 02:28:38,319
will never work. The model is broken,
4129
02:28:38,319 --> 02:28:40,399
right? And so she would then have the
4130
02:28:40,399 --> 02:28:42,399
impossible choice. Either you could
4131
02:28:42,399 --> 02:28:44,800
raise your prices, which would have to
4132
02:28:44,800 --> 02:28:45,840
be an absurd amount if you always have
4133
02:28:45,840 --> 02:28:49,840
to give half away, or you lower wages,
4134
02:28:49,840 --> 02:28:51,520
or you change it to not being percentage
4135
02:28:51,520 --> 02:28:54,160
based, right? But the thing here is like
4136
02:28:54,160 --> 02:28:55,680
we had to change something structural
4137
02:28:55,680 --> 02:28:57,760
about the role so we could then recruit
4138
02:28:57,760 --> 02:28:58,880
more people in and actually make the
4139
02:28:58,880 --> 02:29:01,439
business profitable. So then finally, we
4140
02:29:01,439 --> 02:29:03,439
get to the money one of like, well, I
4141
02:29:03,439 --> 02:29:05,439
just simply can't afford to hire more
4142
02:29:05,439 --> 02:29:07,280
people, but I need to hire more people.
4143
02:29:07,280 --> 02:29:09,840
Okay, so these are the same four
4144
02:29:09,840 --> 02:29:11,920
concepts just applied to the supply
4145
02:29:11,920 --> 02:29:13,359
side. So we don't get enough
4146
02:29:13,359 --> 02:29:14,960
applications. That's a lead problem,
4147
02:29:14,960 --> 02:29:16,399
right? So again, it's we're going to run
4148
02:29:16,399 --> 02:29:17,680
through the same ones. You got to have
4149
02:29:17,680 --> 02:29:19,439
better ads, of course. Like you think
4150
02:29:19,439 --> 02:29:21,760
these ads don't matter, headlines, copy,
4151
02:29:21,760 --> 02:29:24,319
the whole thing. It matters, right?
4152
02:29:24,319 --> 02:29:26,720
Better content. If you have a brand,
4153
02:29:26,720 --> 02:29:28,000
more people are willing to work for you.
4154
02:29:28,000 --> 02:29:29,920
When they when they go check out your
4155
02:29:29,920 --> 02:29:31,760
content or your site, they're going to
4156
02:29:31,760 --> 02:29:33,200
be like, "Oh, like they make a decision
4157
02:29:33,200 --> 02:29:35,359
there." That increases your conversions.
4158
02:29:35,359 --> 02:29:37,920
Uh the brand itself, right? The offers,
4159
02:29:37,920 --> 02:29:39,600
quite literally, the offer that you have
4160
02:29:39,600 --> 02:29:41,840
for them will increase the likelihood
4161
02:29:41,840 --> 02:29:43,439
that they actually, you know, opt in to
4162
02:29:43,439 --> 02:29:47,040
become, you know, applicant. Um add a
4163
02:29:47,040 --> 02:29:48,319
money model mechanisms. You could do a
4164
02:29:48,319 --> 02:29:50,319
giveaway if you want. By the way, we did
4165
02:29:50,319 --> 02:29:53,600
uh for when we do our um when we when we
4166
02:29:53,600 --> 02:29:56,160
hire for media, we'll do contests. We'll
4167
02:29:56,160 --> 02:29:58,240
just do contests for for people who want
4168
02:29:58,240 --> 02:30:00,319
to cut videos for us and we'll get like
4169
02:30:00,319 --> 02:30:02,319
a thousand people who will apply and
4170
02:30:02,319 --> 02:30:03,760
then we just walk them through the
4171
02:30:03,760 --> 02:30:05,200
process. We get like 50 people who
4172
02:30:05,200 --> 02:30:06,319
actually like do all the work and then
4173
02:30:06,319 --> 02:30:08,399
from the 50 we pick five, right? So, you
4174
02:30:08,399 --> 02:30:09,359
absolutely can add a money model
4175
02:30:09,359 --> 02:30:10,399
mechanism depending on the role.
4176
02:30:10,399 --> 02:30:11,600
Obviously, you're not going to get a CEO
4177
02:30:11,600 --> 02:30:14,080
that way, but like front line, midline
4178
02:30:14,080 --> 02:30:15,840
for sure.
4179
02:30:15,840 --> 02:30:18,720
Um or better avatar, right? level up
4180
02:30:18,720 --> 02:30:21,520
your target or you can level down and
4181
02:30:21,520 --> 02:30:22,800
add training. I'll give you an example
4182
02:30:22,800 --> 02:30:26,319
of this in a second. Um so for us with
4183
02:30:26,319 --> 02:30:29,120
uh with Allen when we were looking for
4184
02:30:29,120 --> 02:30:30,880
true customer success, people could do
4185
02:30:30,880 --> 02:30:32,640
B2B higher ticket onboarding like
4186
02:30:32,640 --> 02:30:34,479
concierge if you will, we were
4187
02:30:34,479 --> 02:30:35,840
advertising at first for customer
4188
02:30:35,840 --> 02:30:37,840
support and we were getting tons of
4189
02:30:37,840 --> 02:30:39,439
low-level people that just were not
4190
02:30:39,439 --> 02:30:40,720
going to be good for like highlevel
4191
02:30:40,720 --> 02:30:42,080
business owners, right? These were
4192
02:30:42,080 --> 02:30:44,240
business owners that were paying a
4193
02:30:44,240 --> 02:30:46,160
$25,000 setup and white label fee. like
4194
02:30:46,160 --> 02:30:47,520
this is a different caliber just to just
4195
02:30:47,520 --> 02:30:50,080
to use the platform, different level and
4196
02:30:50,080 --> 02:30:52,319
so we had to have customer success. So
4197
02:30:52,319 --> 02:30:53,439
we had to change the title and all of a
4198
02:30:53,439 --> 02:30:55,040
sudden we got the right people, right?
4199
02:30:55,040 --> 02:30:57,439
So like this matters.
4200
02:30:57,439 --> 02:30:58,560
So you have to write it like it's ad
4201
02:30:58,560 --> 02:31:01,439
copy. So all the things that you do to
4202
02:31:01,439 --> 02:31:03,120
change the leads on your front end, you
4203
02:31:03,120 --> 02:31:04,800
do the same things. You still have to
4204
02:31:04,800 --> 02:31:05,840
look at it like a funnel. Like if you
4205
02:31:05,840 --> 02:31:08,319
don't know your conversion metrics for
4206
02:31:08,319 --> 02:31:11,840
your lead or application flow,
4207
02:31:11,840 --> 02:31:13,600
don't be surprised, right? Like that's
4208
02:31:13,600 --> 02:31:15,359
that's like of course you're not you
4209
02:31:15,359 --> 02:31:16,399
don't you don't you don't have metrics.
4210
02:31:16,399 --> 02:31:18,160
You don't even know why where your where
4211
02:31:18,160 --> 02:31:19,600
your stopping point is. And this is if
4212
02:31:19,600 --> 02:31:20,960
this is the constraint of the business.
4213
02:31:20,960 --> 02:31:22,479
Then what else are you doing that's not
4214
02:31:22,479 --> 02:31:24,720
this, right? That's more important. So
4215
02:31:24,720 --> 02:31:26,560
okay, we've got we've got we've got lead
4216
02:31:26,560 --> 02:31:28,319
flow, but we're getting a lot of junk,
4217
02:31:28,319 --> 02:31:31,120
right? Okay. So this is a this is
4218
02:31:31,120 --> 02:31:33,439
conversion rate thing. Same as before.
4219
02:31:33,439 --> 02:31:35,760
Page flow, headline, job description,
4220
02:31:35,760 --> 02:31:37,680
better application process. Do you think
4221
02:31:37,680 --> 02:31:39,600
you put proof in there? I love my job.
4222
02:31:39,600 --> 02:31:41,280
Yep. Do you think you put a VSSL in
4223
02:31:41,280 --> 02:31:43,520
there? Yep. Right? Do you think you work
4224
02:31:43,520 --> 02:31:45,520
the leads through lead nurture? Yep.
4225
02:31:45,520 --> 02:31:46,960
Well, if they need me to remind them,
4226
02:31:46,960 --> 02:31:48,160
no, it doesn't work that way. No one
4227
02:31:48,160 --> 02:31:49,120
cares. You're not the center of the
4228
02:31:49,120 --> 02:31:51,040
universe. You got to work it. I've got a
4229
02:31:51,040 --> 02:31:54,720
brand. We work our leads. Right.
4230
02:31:54,720 --> 02:31:56,880
Better interview training. Like if you
4231
02:31:56,880 --> 02:31:58,319
It's funny like if especially if you get
4232
02:31:58,319 --> 02:32:00,240
a bigger business, like if you listen to
4233
02:32:00,240 --> 02:32:02,640
somebody who's like in HR recruiting do
4234
02:32:02,640 --> 02:32:04,000
do some interviews, you're going to like
4235
02:32:04,000 --> 02:32:05,040
it's going to make your stomach turn.
4236
02:32:05,040 --> 02:32:06,319
The same way as if you've never listened
4237
02:32:06,319 --> 02:32:07,920
to your own sales guys do sales calls,
4238
02:32:07,920 --> 02:32:09,040
you're going to want to kill yourself.
4239
02:32:09,040 --> 02:32:10,080
If you've never done it before, I
4240
02:32:10,080 --> 02:32:11,200
promise you, you're gonna you're gonna
4241
02:32:11,200 --> 02:32:14,479
want to end your life early. So,
4242
02:32:14,479 --> 02:32:16,399
training is how you overcome that. Same
4243
02:32:16,399 --> 02:32:17,920
with better reputation. That's the
4244
02:32:17,920 --> 02:32:20,160
brand. Um, better lead quality. So, this
4245
02:32:20,160 --> 02:32:21,280
is where you can add more friction. If
4246
02:32:21,280 --> 02:32:22,479
you're getting too much junk, you've got
4247
02:32:22,479 --> 02:32:24,319
like, you know, uh, healthcare workers
4248
02:32:24,319 --> 02:32:25,280
or something like that or something.
4249
02:32:25,280 --> 02:32:27,359
You've got a lot of volume for it is low
4250
02:32:27,359 --> 02:32:29,439
skill labor, tons of applications, add
4251
02:32:29,439 --> 02:32:31,120
friction. Add VSLs. It's a sales
4252
02:32:31,120 --> 02:32:33,200
process.
4253
02:32:33,200 --> 02:32:35,600
Um, so I'll give you two examples of
4254
02:32:35,600 --> 02:32:37,840
this. So, I had a um a mental health
4255
02:32:37,840 --> 02:32:39,280
business. So they had a business would
4256
02:32:39,280 --> 02:32:42,000
basically like um did therapy. It was
4257
02:32:42,000 --> 02:32:43,040
covered by the government or some
4258
02:32:43,040 --> 02:32:45,200
government program. Anyways, so they
4259
02:32:45,200 --> 02:32:46,720
would get like 200 bucks or something
4260
02:32:46,720 --> 02:32:47,920
like that per session from the
4261
02:32:47,920 --> 02:32:50,160
government and they could pay like 25.
4262
02:32:50,160 --> 02:32:52,160
Uh so they had a good I mean the the
4263
02:32:52,160 --> 02:32:53,920
money made sense, right? The issue is
4264
02:32:53,920 --> 02:32:55,680
that they just couldn't find therapists
4265
02:32:55,680 --> 02:32:58,560
uh good therapists, excuse me. And so
4266
02:32:58,560 --> 02:32:59,920
the issue was they literally couldn't
4267
02:32:59,920 --> 02:33:01,040
interview enough, right? And they were
4268
02:33:01,040 --> 02:33:01,920
the thing is that they were doing
4269
02:33:01,920 --> 02:33:03,120
one-on- ones because that's how they
4270
02:33:03,120 --> 02:33:06,000
started. But all I did was say, "Hey,
4271
02:33:06,000 --> 02:33:07,600
this is the big crux point of your
4272
02:33:07,600 --> 02:33:10,080
business. Your first interview, we
4273
02:33:10,080 --> 02:33:11,920
should just have it be one to many. Have
4274
02:33:11,920 --> 02:33:13,840
it be 20 people at a time and just have
4275
02:33:13,840 --> 02:33:15,359
everyone do 60 seconds and then you can
4276
02:33:15,359 --> 02:33:16,960
just pick the winners and then you can
4277
02:33:16,960 --> 02:33:18,800
follow up with those people one-on-one."
4278
02:33:18,800 --> 02:33:20,240
And so all we did is we truncated the
4279
02:33:20,240 --> 02:33:22,319
process by two steps and then that
4280
02:33:22,319 --> 02:33:23,840
dramatically opened up the amount of
4281
02:33:23,840 --> 02:33:24,880
interviews and people they could
4282
02:33:24,880 --> 02:33:25,520
actually touch because he was like,
4283
02:33:25,520 --> 02:33:26,720
"Yeah, I'm getting a thousand interviews
4284
02:33:26,720 --> 02:33:28,240
and and we're basically getting one
4285
02:33:28,240 --> 02:33:29,439
person picked for every thousand." I was
4286
02:33:29,439 --> 02:33:31,600
like, there's no way on earth that out
4287
02:33:31,600 --> 02:33:33,520
of a thousand people, you can't find
4288
02:33:33,520 --> 02:33:36,560
more than one lowkilled label person who
4289
02:33:36,560 --> 02:33:38,160
just like basically not a lot of
4290
02:33:38,160 --> 02:33:39,840
aptitude, just needed attitude. I was
4291
02:33:39,840 --> 02:33:41,760
like
4292
02:33:41,760 --> 02:33:43,840
more than, you know, 0.1 out of a
4293
02:33:43,840 --> 02:33:46,640
hundred people is a decent person,
4294
02:33:46,640 --> 02:33:48,640
right? And so all we had to do was
4295
02:33:48,640 --> 02:33:50,319
change the process and boom,
4296
02:33:50,319 --> 02:33:51,600
debottleneck the business and the
4297
02:33:51,600 --> 02:33:53,359
thing's off, right? We had the same
4298
02:33:53,359 --> 02:33:56,080
issue at Gym Launch. And if you recruit
4299
02:33:56,080 --> 02:33:57,920
outbound, this may be like I' I've seen
4300
02:33:57,920 --> 02:33:59,040
it happen so many times specifically
4301
02:33:59,040 --> 02:34:00,720
with outbound because there's churn in
4302
02:34:00,720 --> 02:34:01,840
the position as well. If you do like
4303
02:34:01,840 --> 02:34:04,000
SDRs or BDRs, people who do outbound uh
4304
02:34:04,000 --> 02:34:05,600
emails or cold calls, anything like
4305
02:34:05,600 --> 02:34:08,720
that, uh DMs, if you're in that
4306
02:34:08,720 --> 02:34:10,800
position,
4307
02:34:10,800 --> 02:34:12,640
doing group interviews is almost what's
4308
02:34:12,640 --> 02:34:14,800
required in order to maintain the the
4309
02:34:14,800 --> 02:34:17,439
volume and scale of an enterprise that's
4310
02:34:17,439 --> 02:34:18,640
that size. When you have, you know,
4311
02:34:18,640 --> 02:34:19,760
three, four, five, you're not going to
4312
02:34:19,760 --> 02:34:22,240
notice it. When you have like 20 or 50,
4313
02:34:22,240 --> 02:34:24,160
you need that. You need to have have a a
4314
02:34:24,160 --> 02:34:26,880
more efficient way of acquiring talent.
4315
02:34:26,880 --> 02:34:28,319
And the same concept of like if I could
4316
02:34:28,319 --> 02:34:29,840
sell 50 customers at once, I would.
4317
02:34:29,840 --> 02:34:31,600
Well, then you do a webinar, right? You
4318
02:34:31,600 --> 02:34:32,880
do a webinar to a bunch of job
4319
02:34:32,880 --> 02:34:33,840
applications, then you push them
4320
02:34:33,840 --> 02:34:37,120
through. It's how it works. Um, we don't
4321
02:34:37,120 --> 02:34:38,800
make enough to pay what they want. So,
4322
02:34:38,800 --> 02:34:40,800
this is now we're getting into like they
4323
02:34:40,800 --> 02:34:43,439
are not worthy enough to us to pay the
4324
02:34:43,439 --> 02:34:45,680
market rate, right? Means that other
4325
02:34:45,680 --> 02:34:47,040
businesses are making more off them than
4326
02:34:47,040 --> 02:34:50,560
you are. So, this does backlatter into
4327
02:34:50,560 --> 02:34:52,720
having to improve the business. So you
4328
02:34:52,720 --> 02:34:55,439
raise prices to increase pay. So an
4329
02:34:55,439 --> 02:34:57,120
example of this would be like an HVAC.
4330
02:34:57,120 --> 02:34:59,840
So I had an HVAC company uh who came out
4331
02:34:59,840 --> 02:35:01,680
and technicians are in very low supply.
4332
02:35:01,680 --> 02:35:04,319
Very common for trades right now. And so
4333
02:35:04,319 --> 02:35:06,160
what we did was rather than say hey you
4334
02:35:06,160 --> 02:35:07,840
don't have the cash flow go blow your
4335
02:35:07,840 --> 02:35:09,359
profit. That wasn't the directive. This
4336
02:35:09,359 --> 02:35:10,560
is when I talk about like solution
4337
02:35:10,560 --> 02:35:12,960
stacks. So what we did is say hey
4338
02:35:12,960 --> 02:35:14,880
install the sales motion. So put proof
4339
02:35:14,880 --> 02:35:17,680
put a VSSL in. Put uh you know start
4340
02:35:17,680 --> 02:35:20,640
training on closing. Okay good. Do that
4341
02:35:20,640 --> 02:35:22,720
first. What that'll do when paired with
4342
02:35:22,720 --> 02:35:24,399
pricing, so we're going to have a better
4343
02:35:24,399 --> 02:35:26,160
sales process. We're going to raise the
4344
02:35:26,160 --> 02:35:27,680
price with our better sales process and
4345
02:35:27,680 --> 02:35:29,520
convert more customers. With both those
4346
02:35:29,520 --> 02:35:31,760
things going up, that'll then unlock
4347
02:35:31,760 --> 02:35:35,760
cash flow so that we can pay more people
4348
02:35:35,760 --> 02:35:39,120
or give big ass referral bonuses or go
4349
02:35:39,120 --> 02:35:40,880
to a head hunter. So now with that extra
4350
02:35:40,880 --> 02:35:42,319
cash flow, we can bring the extra
4351
02:35:42,319 --> 02:35:44,240
technicians in and outspend our
4352
02:35:44,240 --> 02:35:46,240
competition competing for the same class
4353
02:35:46,240 --> 02:35:48,960
of people. Make sense? So again,
4354
02:35:48,960 --> 02:35:51,200
sometimes they're multi-step solutions
4355
02:35:51,200 --> 02:35:53,439
in order to resolve the constraint, but
4356
02:35:53,439 --> 02:35:54,880
the thing that you have to focus on is
4357
02:35:54,880 --> 02:35:56,319
the one that's in front of you. So it's
4358
02:35:56,319 --> 02:35:58,240
like I'm I'm, you know, I can't even
4359
02:35:58,240 --> 02:36:00,240
take more jobs. Why would I resolve the
4360
02:36:00,240 --> 02:36:01,760
why would I try and fix my sales? I'm
4361
02:36:01,760 --> 02:36:03,040
just going to take on more deals. It's
4362
02:36:03,040 --> 02:36:05,280
like, no, but we got to do that with
4363
02:36:05,280 --> 02:36:07,680
pairing a raise in price so that we
4364
02:36:07,680 --> 02:36:10,080
unlock the cash flow so that it's like
4365
02:36:10,080 --> 02:36:12,960
so that so that so that we can then go
4366
02:36:12,960 --> 02:36:15,439
recruit the people we need to. Okay. Um,
4367
02:36:15,439 --> 02:36:17,040
another way of doing this is that you
4368
02:36:17,040 --> 02:36:18,800
can basically force your way to getting
4369
02:36:18,800 --> 02:36:21,120
more out of each person, which is, uh,
4370
02:36:21,120 --> 02:36:22,640
you can change your delivery ratio from,
4371
02:36:22,640 --> 02:36:23,840
let's say you've got five clients per
4372
02:36:23,840 --> 02:36:25,520
rep to 10 clients per rep. You can
4373
02:36:25,520 --> 02:36:27,359
switch from a, you know, done for you to
4374
02:36:27,359 --> 02:36:29,760
a done with you. Same same concept. Uh,
4375
02:36:29,760 --> 02:36:32,000
you can cap usage. You can say, hey, we
4376
02:36:32,000 --> 02:36:33,760
only work this many hours or only work
4377
02:36:33,760 --> 02:36:34,880
this much on accounts. That way, your
4378
02:36:34,880 --> 02:36:37,520
costs don't get um, blown out. Just a
4379
02:36:37,520 --> 02:36:38,800
different way of thinking about it. You
4380
02:36:38,800 --> 02:36:41,359
can also time block uh, when each of
4381
02:36:41,359 --> 02:36:42,800
your, you know, teammates is going to be
4382
02:36:42,800 --> 02:36:44,800
working on specific projects. sometimes
4383
02:36:44,800 --> 02:36:46,319
like it takes just direct management of
4384
02:36:46,319 --> 02:36:48,160
their time that like more times than not
4385
02:36:48,160 --> 02:36:49,040
you can double or triple the
4386
02:36:49,040 --> 02:36:50,319
effectiveness of a team by just simply
4387
02:36:50,319 --> 02:36:52,399
managing their time um or you can just
4388
02:36:52,399 --> 02:36:54,160
offshore or nearshore right you just go
4389
02:36:54,160 --> 02:36:56,479
from a different pool
4390
02:36:56,479 --> 02:36:57,920
and I mentioned this earlier with the
4391
02:36:57,920 --> 02:36:59,920
high the high-end service is like if you
4392
02:36:59,920 --> 02:37:02,479
if you really want to dominate one this
4393
02:37:02,479 --> 02:37:04,800
is a strategic bet but you say instead
4394
02:37:04,800 --> 02:37:08,240
of trying to find third-year legal
4395
02:37:08,240 --> 02:37:10,399
whatevers we're gonna take these guys
4396
02:37:10,399 --> 02:37:11,920
out of college but we're going to
4397
02:37:11,920 --> 02:37:13,840
develop an exceptional training process
4398
02:37:13,840 --> 02:37:15,760
us so that we can get them upskilled so
4399
02:37:15,760 --> 02:37:16,960
that they're just as good as the three
4400
02:37:16,960 --> 02:37:18,160
years, but we only have to pay them like
4401
02:37:18,160 --> 02:37:20,160
a one year and it only takes us six
4402
02:37:20,160 --> 02:37:22,160
months to get that arbitrage. It's a
4403
02:37:22,160 --> 02:37:23,840
strategic decision. Like if you look at
4404
02:37:23,840 --> 02:37:25,359
some of the biggest investment banks,
4405
02:37:25,359 --> 02:37:26,160
you look at some of the biggest
4406
02:37:26,160 --> 02:37:27,840
management consultants, they did the
4407
02:37:27,840 --> 02:37:29,600
same thing. Like you go to Mckenzie, you
4408
02:37:29,600 --> 02:37:30,880
go to Bin, you go to BCG, you go to
4409
02:37:30,880 --> 02:37:33,040
Goldman, you go to JP Morgan, they have
4410
02:37:33,040 --> 02:37:34,399
just they take people right out of
4411
02:37:34,399 --> 02:37:35,840
college, they pay them six figures,
4412
02:37:35,840 --> 02:37:37,040
right? And they do that because they
4413
02:37:37,040 --> 02:37:38,479
have exceptional training because it's
4414
02:37:38,479 --> 02:37:42,760
so hard to find the people above that.
4415
02:37:43,840 --> 02:37:46,479
And so um similar example lifetime gross
4416
02:37:46,479 --> 02:37:48,479
profit so high-end uh consultant book
4417
02:37:48,479 --> 02:37:49,760
solid for six months. All right. So I
4418
02:37:49,760 --> 02:37:51,280
think this was like a tax strategist I
4419
02:37:51,280 --> 02:37:53,920
think but it was like a it was half
4420
02:37:53,920 --> 02:37:56,319
accountant half consultant right? So
4421
02:37:56,319 --> 02:37:57,840
it's like you're book solid for six
4422
02:37:57,840 --> 02:37:59,760
months jack the prices change the
4423
02:37:59,760 --> 02:38:02,080
delivery ratio hire associates and then
4424
02:38:02,080 --> 02:38:04,000
backfill by by scaling the training and
4425
02:38:04,000 --> 02:38:07,280
your recruiting ability.
4426
02:38:07,280 --> 02:38:10,240
So why can't you know why don't we make
4427
02:38:10,240 --> 02:38:11,760
enough to pay what they want? Well, we
4428
02:38:11,760 --> 02:38:12,800
had to fix the leads. We had to fix
4429
02:38:12,800 --> 02:38:14,560
sales. We had to fix delivery. And so
4430
02:38:14,560 --> 02:38:17,120
why can't we do more to get the talent?
4431
02:38:17,120 --> 02:38:18,960
We go through more metrics, market model
4432
02:38:18,960 --> 02:38:20,800
money,
4433
02:38:20,800 --> 02:38:23,359
which resolve all of the original Mosy
4434
02:38:23,359 --> 02:38:26,160
6.
4435
02:38:26,160 --> 02:38:27,920
Huzzah.
4436
02:38:27,920 --> 02:38:29,120
So, I want to do a quick little
4437
02:38:29,120 --> 02:38:31,359
dangerous middle,
4438
02:38:31,359 --> 02:38:33,600
which is right now if your revenue feels
4439
02:38:33,600 --> 02:38:36,080
steady or you're working hard but you're
4440
02:38:36,080 --> 02:38:37,840
not growing,
4441
02:38:37,840 --> 02:38:39,680
uh, or you kind of need more leads but
4442
02:38:39,680 --> 02:38:41,680
you can't really handle that much more.
4443
02:38:41,680 --> 02:38:42,720
If you're nodding your head and being
4444
02:38:42,720 --> 02:38:44,080
like, "This sounds a lot like me right
4445
02:38:44,080 --> 02:38:46,479
now." Typically, this is just my
4446
02:38:46,479 --> 02:38:48,319
analysis of businesses that feel like
4447
02:38:48,319 --> 02:38:49,920
they're at capacity but they're still
4448
02:38:49,920 --> 02:38:52,080
like they're like kind of in that
4449
02:38:52,080 --> 02:38:53,920
balance. You're actually demand
4450
02:38:53,920 --> 02:38:56,720
constrained.
4451
02:38:56,720 --> 02:38:58,560
So you need to break the business with
4452
02:38:58,560 --> 02:39:00,560
demand and increase cash flow and then
4453
02:39:00,560 --> 02:39:02,960
stretch capacity. So if you're in
4454
02:39:02,960 --> 02:39:06,000
equilibrium, it's almost it's like I
4455
02:39:06,000 --> 02:39:08,800
can't guarantee anything of course, but
4456
02:39:08,800 --> 02:39:10,960
it's super likely that if you had to,
4457
02:39:10,960 --> 02:39:13,680
you could do 30% more. Like almost
4458
02:39:13,680 --> 02:39:16,160
always like people can gas it for 8
4459
02:39:16,160 --> 02:39:18,880
weeks, 12 weeks if they have to. And so
4460
02:39:18,880 --> 02:39:20,319
sometimes you have to break through
4461
02:39:20,319 --> 02:39:23,359
those those those periods of stagnation
4462
02:39:23,359 --> 02:39:25,840
so that you can generate the extra cash
4463
02:39:25,840 --> 02:39:27,680
flow you need to then bring more people
4464
02:39:27,680 --> 02:39:29,120
in, right? So you can expand your
4465
02:39:29,120 --> 02:39:30,800
capacity. So sometimes you have to
4466
02:39:30,800 --> 02:39:33,040
redline. And so if you're like I'm not
4467
02:39:33,040 --> 02:39:34,880
sure which one I am, you can pretty much
4468
02:39:34,880 --> 02:39:36,399
like I would recommend you start with
4469
02:39:36,399 --> 02:39:38,880
making more money and then dealing with
4470
02:39:38,880 --> 02:39:41,040
the supply constraint with the extra
4471
02:39:41,040 --> 02:39:44,560
resources because the alternative
4472
02:39:44,560 --> 02:39:46,880
you expand your supply, right? But then
4473
02:39:46,880 --> 02:39:48,160
what if you don't have the demand? Now
4474
02:39:48,160 --> 02:39:49,840
you're just you're really underwater,
4475
02:39:49,840 --> 02:39:52,479
right? And so I would rather generate
4476
02:39:52,479 --> 02:39:55,840
the cash if I need to extend terms than
4477
02:39:55,840 --> 02:39:58,800
bring in the supply.
4478
02:39:58,800 --> 02:40:01,200
So with that being said, we're on part
4479
02:40:01,200 --> 02:40:02,479
four. You guys digging this? Is this
4480
02:40:02,479 --> 02:40:05,920
fun? Is this exciting? Yay. Burping the
4481
02:40:05,920 --> 02:40:07,760
green egg. I don't know what that was.
4482
02:40:07,760 --> 02:40:11,840
Um where is the watermark behind every I
4483
02:40:11,840 --> 02:40:15,280
don't know. Anyways, so part four tools
4484
02:40:15,280 --> 02:40:17,359
and implementation. So this is the this
4485
02:40:17,359 --> 02:40:19,520
is the next little section. So some of
4486
02:40:19,520 --> 02:40:20,800
you guys might still be wondering what
4487
02:40:20,800 --> 02:40:22,720
if I don't know my constraint or I'm not
4488
02:40:22,720 --> 02:40:25,439
sure or I know my constraint and I'm
4489
02:40:25,439 --> 02:40:28,720
just not sure I can figure it out or I
4490
02:40:28,720 --> 02:40:30,800
know my constraint, I just want support
4491
02:40:30,800 --> 02:40:32,399
and the ability to ask questions for the
4492
02:40:32,399 --> 02:40:34,080
next six months uh to make sure it's
4493
02:40:34,080 --> 02:40:36,319
implemented correctly. Okay. And so it's
4494
02:40:36,319 --> 02:40:38,880
what I made the scale advisory for. And
4495
02:40:38,880 --> 02:40:40,640
so we had a lot of people ask for the
4496
02:40:40,640 --> 02:40:42,240
scale advisory after the deadline closed
4497
02:40:42,240 --> 02:40:44,160
on Monday night uh because they missed
4498
02:40:44,160 --> 02:40:45,520
it when they were checking out or they
4499
02:40:45,520 --> 02:40:46,479
didn't want, you know, they didn't watch
4500
02:40:46,479 --> 02:40:47,840
the video because I was live and they're
4501
02:40:47,840 --> 02:40:49,520
like, I didn't know which one to do or
4502
02:40:49,520 --> 02:40:50,720
they didn't understand that it was six
4503
02:40:50,720 --> 02:40:52,080
months of support, not just six
4504
02:40:52,080 --> 02:40:54,800
workshops, whatever. And so out of
4505
02:40:54,800 --> 02:40:56,479
integrity and legally, I can't make the
4506
02:40:56,479 --> 02:40:59,040
same offer again. But I actually asked
4507
02:40:59,040 --> 02:41:01,680
this morning um everybody who was in the
4508
02:41:01,680 --> 02:41:02,880
scale advisory what they thought. And
4509
02:41:02,880 --> 02:41:04,880
this is what they said. I said, "Hey,
4510
02:41:04,880 --> 02:41:06,800
um, this group kicks off September 1st,
4511
02:41:06,800 --> 02:41:08,720
which is when it does kick off. Uh, we
4512
02:41:08,720 --> 02:41:10,000
gave everybody who, you know, obviously
4513
02:41:10,000 --> 02:41:11,280
donated books during the book launch
4514
02:41:11,280 --> 02:41:12,800
extra, you know, a few extra weeks to
4515
02:41:12,800 --> 02:41:14,800
let the dust settle, but our official
4516
02:41:14,800 --> 02:41:16,960
six month begins September 1, uh,
4517
02:41:16,960 --> 02:41:18,800
through end of end of February." So,
4518
02:41:18,800 --> 02:41:19,920
that being said, we got a bunch of
4519
02:41:19,920 --> 02:41:21,359
messages from very solid businesses
4520
02:41:21,359 --> 02:41:22,560
saying that they missed it or didn't see
4521
02:41:22,560 --> 02:41:24,080
the video. And I'd like to open the door
4522
02:41:24,080 --> 02:41:25,280
for them for a short period, but I want
4523
02:41:25,280 --> 02:41:27,200
to ask them. So, I actually asked our uh
4524
02:41:27,200 --> 02:41:29,120
the group this morning and I said, "So,
4525
02:41:29,120 --> 02:41:30,240
should I mention the ability to get in
4526
02:41:30,240 --> 02:41:32,399
the group today and leave the option for
4527
02:41:32,399 --> 02:41:35,280
24 hours, give them until September 1st,
4528
02:41:35,280 --> 02:41:37,040
or just not let them in?" And so, you
4529
02:41:37,040 --> 02:41:39,040
can see the responses right there. And
4530
02:41:39,040 --> 02:41:42,399
so, 83% um last time I checked and
4531
02:41:42,399 --> 02:41:45,359
screenshotted it, uh said to uh open the
4532
02:41:45,359 --> 02:41:47,920
door for 24 hours for you guys. So, um
4533
02:41:47,920 --> 02:41:49,359
that's what I'm going to do really
4534
02:41:49,359 --> 02:41:51,439
quickly. And so VUX populate VUX day
4535
02:41:51,439 --> 02:41:52,720
which is the voice of the people is the
4536
02:41:52,720 --> 02:41:54,319
voice of God or the voice of people is
4537
02:41:54,319 --> 02:41:57,760
the divine. Um so if you missed it and
4538
02:41:57,760 --> 02:41:59,200
uh would like me to help you for the
4539
02:41:59,200 --> 02:42:00,960
next six months just to get some of the
4540
02:42:00,960 --> 02:42:02,560
stuff implemented so you can kick off
4541
02:42:02,560 --> 02:42:04,880
2026 to hopefully break records. This is
4542
02:42:04,880 --> 02:42:07,040
just a quick recap of the scale advisory
4543
02:42:07,040 --> 02:42:09,120
entails. So this will be very very fast.
4544
02:42:09,120 --> 02:42:11,439
So um it's inside is the school
4545
02:42:11,439 --> 02:42:13,600
community. It's a scale advisory. Um you
4546
02:42:13,600 --> 02:42:15,280
get access to me and the directors. So
4547
02:42:15,280 --> 02:42:17,520
this is all the people from my team um
4548
02:42:17,520 --> 02:42:20,000
that are involved. What's actually crazy
4549
02:42:20,000 --> 02:42:23,040
as a side note is that I thought so like
4550
02:42:23,040 --> 02:42:24,399
I had a lot of different guesses of what
4551
02:42:24,399 --> 02:42:25,600
was going to what was going to happen at
4552
02:42:25,600 --> 02:42:27,840
the launch. This one surprised me the
4553
02:42:27,840 --> 02:42:31,760
most because we offer zero access to me
4554
02:42:31,760 --> 02:42:34,160
or the team ever anywhere. So there's
4555
02:42:34,160 --> 02:42:35,920
nothing ongoing ever and it's just
4556
02:42:35,920 --> 02:42:38,080
because I don't like ongoing commitments
4557
02:42:38,080 --> 02:42:39,359
um because I take them really serious
4558
02:42:39,359 --> 02:42:42,160
and hopefully up to my commitment
4559
02:42:42,160 --> 02:42:45,040
seriously. Um, and so none of these
4560
02:42:45,040 --> 02:42:46,319
people have anyone who has access to
4561
02:42:46,319 --> 02:42:47,520
them except for people in the scale
4562
02:42:47,520 --> 02:42:51,120
advisory. And so, uh, normally one day
4563
02:42:51,120 --> 02:42:53,280
we charge for just one person on the
4564
02:42:53,280 --> 02:42:55,680
team is $35,000. You get access to all
4565
02:42:55,680 --> 02:42:56,560
of them. So, if you're like, man, I need
4566
02:42:56,560 --> 02:42:57,600
help on marketing, you can talk to Louis
4567
02:42:57,600 --> 02:42:58,880
or Preston. If you're like, man, I need
4568
02:42:58,880 --> 02:43:00,160
help with like my kind of model and my
4569
02:43:00,160 --> 02:43:01,200
strategy. You can talk to Ed. You can
4570
02:43:01,200 --> 02:43:03,120
talk to Ned. Actually, that's kind of
4571
02:43:03,120 --> 02:43:05,520
funny name wise. Um, if you're like, how
4572
02:43:05,520 --> 02:43:06,880
do I talk about um, you know,
4573
02:43:06,880 --> 02:43:08,960
recruiting? We got Frank. If you've
4574
02:43:08,960 --> 02:43:10,240
like, how do I do more fulfillment? You
4575
02:43:10,240 --> 02:43:11,680
got Lindsay. We got more strategy, you
4576
02:43:11,680 --> 02:43:13,359
got Neil. you got more sales, you got
4577
02:43:13,359 --> 02:43:15,680
hop uh Jacob, right? And so all these
4578
02:43:15,680 --> 02:43:17,200
people are who do this for us. And so
4579
02:43:17,200 --> 02:43:19,600
they do this at a very high level. Um
4580
02:43:19,600 --> 02:43:20,960
and so that's the first thing you get
4581
02:43:20,960 --> 02:43:22,720
inside. Um we're also going to do a
4582
02:43:22,720 --> 02:43:24,080
leads workshop. So if you enjoyed this
4583
02:43:24,080 --> 02:43:26,000
workshop, this is just going to be even
4584
02:43:26,000 --> 02:43:28,560
more dirt, even more tactics just on
4585
02:43:28,560 --> 02:43:30,080
solving leads. So if we went through
4586
02:43:30,080 --> 02:43:31,359
this whole thing and you were like,
4587
02:43:31,359 --> 02:43:33,520
"Okay, I think I have a leads issue,
4588
02:43:33,520 --> 02:43:35,040
like they're costing too much. Like I
4589
02:43:35,040 --> 02:43:36,479
just need to solve that." We have a
4590
02:43:36,479 --> 02:43:38,240
whole workshop on that. Um if you're
4591
02:43:38,240 --> 02:43:39,280
like, you know what, I have a sales
4592
02:43:39,280 --> 02:43:42,399
issue. Um, so we'll basically go super
4593
02:43:42,399 --> 02:43:44,319
deep on the dirt of like let's solve the
4594
02:43:44,319 --> 02:43:46,080
sales constraint for good. Uh, if you
4595
02:43:46,080 --> 02:43:47,840
have a delivery issue, an LTV workshop,
4596
02:43:47,840 --> 02:43:49,040
so it's like, okay, let's make sure that
4597
02:43:49,040 --> 02:43:50,880
we can solve like basically make them
4598
02:43:50,880 --> 02:43:52,319
worth more so that you can afford to out
4599
02:43:52,319 --> 02:43:54,640
compete your competition. Um, the profit
4600
02:43:54,640 --> 02:43:56,240
workshop. So that's going to be like how
4601
02:43:56,240 --> 02:43:57,359
do we change pricing, how do we
4602
02:43:57,359 --> 02:43:58,560
repackage things, how do we build
4603
02:43:58,560 --> 02:44:00,080
differently, how do we accelerate cash
4604
02:44:00,080 --> 02:44:02,000
flow, um, all the things that we know
4605
02:44:02,000 --> 02:44:03,520
that we've done in all the different
4606
02:44:03,520 --> 02:44:04,880
spaces that have just dramatically
4607
02:44:04,880 --> 02:44:07,920
driven up uh, profit in the businesses.
4608
02:44:07,920 --> 02:44:10,160
Um, on top of that, Leila is running a
4609
02:44:10,160 --> 02:44:11,840
people and AI workshop. So, if you are
4610
02:44:11,840 --> 02:44:13,359
supply constrained that we're just going
4611
02:44:13,359 --> 02:44:14,800
to be doing that on steroids, plus we're
4612
02:44:14,800 --> 02:44:16,160
gonna talk about how we're implementing
4613
02:44:16,160 --> 02:44:18,560
AI into our service-based business. Um,
4614
02:44:18,560 --> 02:44:20,880
and how you can too. Um, I think that
4615
02:44:20,880 --> 02:44:22,560
like right now it's the best time to be
4616
02:44:22,560 --> 02:44:24,160
an entrepreneur. Um, there's just a
4617
02:44:24,160 --> 02:44:25,279
gigantic amount of opportunity in the
4618
02:44:25,279 --> 02:44:27,840
next 36 months. Uh, and then Shiron, who
4619
02:44:27,840 --> 02:44:30,479
some of you guys don't know, um, Shiron
4620
02:44:30,479 --> 02:44:32,880
was a super early mentor of mine. Uh, he
4621
02:44:32,880 --> 02:44:35,600
exited Tely's first and they, uh, they
4622
02:44:35,600 --> 02:44:37,120
went from like 50 million in volume to
4623
02:44:37,120 --> 02:44:39,600
3.4 4 billion. Uh, and then he did
4624
02:44:39,600 --> 02:44:41,279
nothing for like six years. Then he
4625
02:44:41,279 --> 02:44:42,880
started Swillo Capital, sorry, Swill
4626
02:44:42,880 --> 02:44:44,560
Ventures, which was basically just his
4627
02:44:44,560 --> 02:44:46,000
family office where he was investing the
4628
02:44:46,000 --> 02:44:48,240
money. Um, did that and then I convinced
4629
02:44:48,240 --> 02:44:50,000
him to go back, get back in the game.
4630
02:44:50,000 --> 02:44:52,000
And so he uh went to real brokerage and
4631
02:44:52,000 --> 02:44:53,680
they took them from 200 million to 1.2
4632
02:44:53,680 --> 02:44:55,840
billion. Um, and then after doing that,
4633
02:44:55,840 --> 02:44:57,040
I was like, "Hey man, you want to come
4634
02:44:57,040 --> 02:44:59,600
hang with us?" And he said yes. So um,
4635
02:44:59,600 --> 02:45:02,720
Chiron's actually president of ACQ. Um,
4636
02:45:02,720 --> 02:45:04,240
and so he's going to share all the stuff
4637
02:45:04,240 --> 02:45:05,920
that we like a lot of stuff he taught me
4638
02:45:05,920 --> 02:45:08,560
on wealth, tax, finance, operations. So
4639
02:45:08,560 --> 02:45:10,479
like if you're anyone who makes any
4640
02:45:10,479 --> 02:45:11,840
decent amount of money in your business,
4641
02:45:11,840 --> 02:45:12,720
the amount of things that we especially
4642
02:45:12,720 --> 02:45:14,479
if you're in the US, um, the amount of
4643
02:45:14,479 --> 02:45:16,160
things that I've learned from a tax tax
4644
02:45:16,160 --> 02:45:19,439
perspective, it's an insane like I feel
4645
02:45:19,439 --> 02:45:21,840
very confident. Um, that's why I was so
4646
02:45:21,840 --> 02:45:22,880
I was so surprised with this one because
4647
02:45:22,880 --> 02:45:24,240
I was like we have never offered any
4648
02:45:24,240 --> 02:45:26,319
kind of access and this is le like this
4649
02:45:26,319 --> 02:45:28,479
is half of what people pay for one day
4650
02:45:28,479 --> 02:45:30,319
in six months. I was like like this was
4651
02:45:30,319 --> 02:45:31,520
the one that I was like blown away. I
4652
02:45:31,520 --> 02:45:32,560
was like, maybe people didn't hear it
4653
02:45:32,560 --> 02:45:35,520
that well. Um, and so on top of that,
4654
02:45:35,520 --> 02:45:37,120
you'll get the school group uh that
4655
02:45:37,120 --> 02:45:38,479
houses everybody else. And so this is
4656
02:45:38,479 --> 02:45:40,880
actually kind of cool. So inside of the
4657
02:45:40,880 --> 02:45:42,080
school group, so I just pulled up Las
4658
02:45:42,080 --> 02:45:43,120
Vegas this morning and took a
4659
02:45:43,120 --> 02:45:45,200
screenshot. There's 32 people just like
4660
02:45:45,200 --> 02:45:48,319
in the Vegas area. Um, and so I bring
4661
02:45:48,319 --> 02:45:49,200
that up because like I think
4662
02:45:49,200 --> 02:45:50,479
entrepreneurship's lonely and being able
4663
02:45:50,479 --> 02:45:51,359
to connect with other high level
4664
02:45:51,359 --> 02:45:52,560
business owners I think is the coolest
4665
02:45:52,560 --> 02:45:54,720
thing. So are all 32 people you're going
4666
02:45:54,720 --> 02:45:56,240
to get along with? No. But there's like
4667
02:45:56,240 --> 02:45:59,200
two probably. Uh, and so like I think
4668
02:45:59,200 --> 02:46:00,880
that like for me the things that have
4669
02:46:00,880 --> 02:46:02,240
paid the most life dividends have been
4670
02:46:02,240 --> 02:46:03,840
the people that have come into my life.
4671
02:46:03,840 --> 02:46:05,680
And so um I wanted to create an
4672
02:46:05,680 --> 02:46:07,279
opportunity uh for those of you who want
4673
02:46:07,279 --> 02:46:10,000
that. And so I that is in total like
4674
02:46:10,000 --> 02:46:13,120
$65,000 of true actual value like real
4675
02:46:13,120 --> 02:46:14,720
value and I can't even price what six
4676
02:46:14,720 --> 02:46:17,120
months is because we don't do access. Um
4677
02:46:17,120 --> 02:46:18,319
but if you're like I would really like
4678
02:46:18,319 --> 02:46:19,359
help over the next six months
4679
02:46:19,359 --> 02:46:20,479
implementing these things into the
4680
02:46:20,479 --> 02:46:22,319
business um and be able to like directly
4681
02:46:22,319 --> 02:46:24,399
reach out then that's what I did this
4682
02:46:24,399 --> 02:46:27,760
for. Okay. So, it's um it's $3,000 times
4683
02:46:27,760 --> 02:46:30,160
six. We're doing it for 24 hours. Um
4684
02:46:30,160 --> 02:46:31,359
thank all the people who are in the
4685
02:46:31,359 --> 02:46:34,000
group if those you are in there. Um you
4686
02:46:34,000 --> 02:46:35,120
can let them know if you think it's
4687
02:46:35,120 --> 02:46:37,760
good. Um but we kick everything off
4688
02:46:37,760 --> 02:46:39,040
September 1st, so you're not like
4689
02:46:39,040 --> 02:46:41,279
missing anything by by coming in today.
4690
02:46:41,279 --> 02:46:43,279
Um but you can go to scale.acq.com,
4691
02:46:43,279 --> 02:46:45,680
which is at the bottom there. And so
4692
02:46:45,680 --> 02:46:48,000
this is just uh it's just if you want to
4693
02:46:48,000 --> 02:46:49,120
keep the party going, you want to set
4694
02:46:49,120 --> 02:46:52,319
yourself up for Q1 next year. Um we've
4695
02:46:52,319 --> 02:46:54,160
dedicated tremendous resources to doing
4696
02:46:54,160 --> 02:46:55,600
this because I want to do this super
4697
02:46:55,600 --> 02:46:57,760
well and just have like a crazy amount
4698
02:46:57,760 --> 02:47:00,720
of growth stories that I can tell. Um
4699
02:47:00,720 --> 02:47:02,080
and so I'll just give you a couple
4700
02:47:02,080 --> 02:47:03,359
things that I just saw from inside just
4701
02:47:03,359 --> 02:47:04,960
from the last like four or five days.
4702
02:47:04,960 --> 02:47:07,520
It's like Lance, you know, from one out
4703
02:47:07,520 --> 02:47:10,560
of 400 to a 40% close rate. Uh Hamza, he
4704
02:47:10,560 --> 02:47:11,600
talked about how his show rates
4705
02:47:11,600 --> 02:47:13,040
improved. You'll probably also notice
4706
02:47:13,040 --> 02:47:15,120
that I don't talk about income claims.
4707
02:47:15,120 --> 02:47:17,040
That is not by that is not by mistake.
4708
02:47:17,040 --> 02:47:19,040
Like I don't have them. Um I just don't
4709
02:47:19,040 --> 02:47:20,240
make them because I don't think they set
4710
02:47:20,240 --> 02:47:22,479
proper expectations and also it's tends
4711
02:47:22,479 --> 02:47:25,600
to be frowned upon. Um Preston, you
4712
02:47:25,600 --> 02:47:26,640
know, Preston is brilliant. I know
4713
02:47:26,640 --> 02:47:28,000
you're very busy. Respect for your time.
4714
02:47:28,000 --> 02:47:29,359
I followed your advice and spent all
4715
02:47:29,359 --> 02:47:32,399
night creating your blackbook. Um just,
4716
02:47:32,399 --> 02:47:33,840
you know, awesome. And like Ed Turner,
4717
02:47:33,840 --> 02:47:35,359
that's incredible value. Crystal, like
4718
02:47:35,359 --> 02:47:38,000
wow, so much value. Um Kevin, thanks for
4719
02:47:38,000 --> 02:47:39,439
putting such an awesome group together.
4720
02:47:39,439 --> 02:47:41,120
your team is really solid from Adam
4721
02:47:41,120 --> 02:47:42,880
Jacobs. Already adding so much value.
4722
02:47:42,880 --> 02:47:44,560
Mike Robinson, I can't believe so much
4723
02:47:44,560 --> 02:47:46,399
value has been shared. Uh any of these
4724
02:47:46,399 --> 02:47:48,080
are incredible.
4725
02:47:48,080 --> 02:47:50,240
Uh like we can keep going. Let's see.
4726
02:47:50,240 --> 02:47:52,479
Paul said, uh some of these I wanted to
4727
02:47:52,479 --> 02:47:53,520
bring up because people are actually
4728
02:47:53,520 --> 02:47:54,880
just sharing their biggest tactics. One
4729
02:47:54,880 --> 02:47:55,920
of the things I asked everybody in the
4730
02:47:55,920 --> 02:47:57,680
scale advisory is like introduce
4731
02:47:57,680 --> 02:47:59,279
yourself and then share the most
4732
02:47:59,279 --> 02:48:00,720
valuable tactic that you have in your
4733
02:48:00,720 --> 02:48:01,680
business. Like what is one of the things
4734
02:48:01,680 --> 02:48:02,560
that made the biggest difference
4735
02:48:02,560 --> 02:48:04,160
tactically? And so it's like Paul is
4736
02:48:04,160 --> 02:48:05,600
like, "Hey, we basically had no Google
4737
02:48:05,600 --> 02:48:07,760
reviews and then got 650 with one script
4738
02:48:07,760 --> 02:48:09,120
and he shared the script and this is you
4739
02:48:09,120 --> 02:48:12,080
know Chris Williams um how ACQAI made me
4740
02:48:12,080 --> 02:48:13,920
again I don't want to put income there
4741
02:48:13,920 --> 02:48:15,279
uh in four hours and he just explained
4742
02:48:15,279 --> 02:48:16,560
how the whole play worked right and he
4743
02:48:16,560 --> 02:48:18,800
just documented it and then Anton was
4744
02:48:18,800 --> 02:48:21,040
like hey I generated 84 leads with money
4745
02:48:21,040 --> 02:48:22,720
models books by just giving them away."
4746
02:48:22,720 --> 02:48:25,359
Uh and so he got like 84 leads 12 sales
4747
02:48:25,359 --> 02:48:26,800
calls booked six of them were ideal
4748
02:48:26,800 --> 02:48:28,880
clients just by giving the books away.
4749
02:48:28,880 --> 02:48:30,319
Um I'm not saying it's going to happen
4750
02:48:30,319 --> 02:48:32,560
for you. That's not the point. Um, but
4751
02:48:32,560 --> 02:48:36,080
this is like I like this is the mo like
4752
02:48:36,080 --> 02:48:37,760
I actually think this is an absurd
4753
02:48:37,760 --> 02:48:40,560
offer. Um, and so I'll give you guys 15
4754
02:48:40,560 --> 02:48:41,760
minutes to enroll and take a break
4755
02:48:41,760 --> 02:48:44,080
because I need to drink some water. Um,
4756
02:48:44,080 --> 02:48:45,359
you know, bathroom break. If you want to
4757
02:48:45,359 --> 02:48:47,200
enroll, go there now. Uh, so
4758
02:48:47,200 --> 02:48:49,120
scale.acq.com. You can go grab it. And
4759
02:48:49,120 --> 02:48:51,040
then we're going to do uh case studies
4760
02:48:51,040 --> 02:48:54,240
in the AI implementation uh second half.
4761
02:48:54,240 --> 02:48:57,840
All right, rock and roll. Do that
4762
02:48:57,840 --> 02:49:02,800
15. Start the timer, somebody. Okay.
4763
02:49:03,200 --> 02:49:06,000
and
4764
02:49:06,000 --> 02:49:08,160
with the uh the offer today and that's
4765
02:49:08,160 --> 02:49:09,760
because I legally cannot make the same
4766
02:49:09,760 --> 02:49:10,960
offer and say something has gone away
4767
02:49:10,960 --> 02:49:12,720
forever. So, the offer does not come
4768
02:49:12,720 --> 02:49:16,000
with the the 800 bucks.
4769
03:04:04,080 --> 03:04:06,080
All
4770
03:04:19,600 --> 03:04:22,000
right, I uh stuffed my face as fast I
4771
03:04:22,000 --> 03:04:24,560
possibly could uh for lunch. For those
4772
03:04:24,560 --> 03:04:26,640
of you guys who um who join us for the
4773
03:04:26,640 --> 03:04:28,240
next six months, super pumped to to have
4774
03:04:28,240 --> 03:04:31,680
you. The community is awesome. Um and
4775
03:04:31,680 --> 03:04:34,880
yeah, we uh we just wanted to uh tell
4776
03:04:34,880 --> 03:04:36,240
those of you who like are like you know
4777
03:04:36,240 --> 03:04:38,160
what I would love to have deeper dive on
4778
03:04:38,160 --> 03:04:40,560
all this stuff wanted to help and I uh
4779
03:04:40,560 --> 03:04:42,240
am giving you access to my actual team
4780
03:04:42,240 --> 03:04:43,840
so that you can get questions answered
4781
03:04:43,840 --> 03:04:45,520
which it's the most viable thing I can
4782
03:04:45,520 --> 03:04:48,319
do. All right. Um,
4783
03:04:48,319 --> 03:04:52,200
can you pull up my presentation?
4784
03:04:57,600 --> 03:04:59,680
Also, to the obvious answer to everyone
4785
03:04:59,680 --> 03:05:01,040
who's s I'm seeing in the chat like
4786
03:05:01,040 --> 03:05:03,279
start a 200 book school community. Well,
4787
03:05:03,279 --> 03:05:05,040
that would kind of defy the purpose. And
4788
03:05:05,040 --> 03:05:06,880
also just very transparently like I
4789
03:05:06,880 --> 03:05:08,319
can't afford to pay the people that I
4790
03:05:08,319 --> 03:05:10,479
pay. Just like just being really like
4791
03:05:10,479 --> 03:05:14,399
straight up with you guys. um like and
4792
03:05:14,399 --> 03:05:15,439
we did it that way so that we could
4793
03:05:15,439 --> 03:05:16,880
incentivize people who wanted to donate
4794
03:05:16,880 --> 03:05:18,399
more. So I have to keep it that way. I'm
4795
03:05:18,399 --> 03:05:19,920
not going to have a a group for one and
4796
03:05:19,920 --> 03:05:21,120
then a group for another. It doesn't
4797
03:05:21,120 --> 03:05:23,279
make sense. Um hopefully that should be
4798
03:05:23,279 --> 03:05:27,439
obvious. Um otherwise I appreciate you
4799
03:05:27,439 --> 03:05:29,200
guys and it's just it's a it's a huge
4800
03:05:29,200 --> 03:05:32,080
amount of work. Um like I'll say it
4801
03:05:32,080 --> 03:05:34,240
differently. If I wanted to have
4802
03:05:34,240 --> 03:05:35,680
something where just like everyone just
4803
03:05:35,680 --> 03:05:38,000
goes in then like
4804
03:05:38,000 --> 03:05:39,520
there's like you could have a zillion
4805
03:05:39,520 --> 03:05:43,359
people you know somewhere. Um, we I you
4806
03:05:43,359 --> 03:05:44,960
saw the amount of staffing I put into
4807
03:05:44,960 --> 03:05:47,439
this was because like I want to deliver.
4808
03:05:47,439 --> 03:05:49,680
Um, and transparently I think for that
4809
03:05:49,680 --> 03:05:51,840
level of access I probably could charge
4810
03:05:51,840 --> 03:05:53,760
$100,000.
4811
03:05:53,760 --> 03:05:55,600
The only reason this is priced at
4812
03:05:55,600 --> 03:05:58,800
$18,000 and $3,000 down is because at
4813
03:05:58,800 --> 03:06:01,439
the launch I couldn't facilitate
4814
03:06:01,439 --> 03:06:02,960
uh phone like I couldn't facilitate that
4815
03:06:02,960 --> 03:06:04,000
many phone sales, right? I mean
4816
03:06:04,000 --> 03:06:05,120
obviously we had as many people as we
4817
03:06:05,120 --> 03:06:06,399
could but like we couldn't we couldn't
4818
03:06:06,399 --> 03:06:08,399
take the take the volume. And so I had
4819
03:06:08,399 --> 03:06:09,840
to have it be at a price point that
4820
03:06:09,840 --> 03:06:11,200
people could just immediately say yes if
4821
03:06:11,200 --> 03:06:12,319
you guys would have like some behind the
4822
03:06:12,319 --> 03:06:15,520
curtain. Um but this is like this is
4823
03:06:15,520 --> 03:06:17,120
something that I would normally like we
4824
03:06:17,120 --> 03:06:20,000
charge $35,000 for one day
4825
03:06:20,000 --> 03:06:21,840
and it's not because it's about one day.
4826
03:06:21,840 --> 03:06:23,200
It's about how much is solving your
4827
03:06:23,200 --> 03:06:24,720
constraint worth. So if you're at
4828
03:06:24,720 --> 03:06:25,840
$500,000 a year and you know you could
4829
03:06:25,840 --> 03:06:27,040
be at a million dollar a year and
4830
03:06:27,040 --> 03:06:28,160
solving the constraints the difference
4831
03:06:28,160 --> 03:06:30,080
then $35,000 is nothing. I'm not saying
4832
03:06:30,080 --> 03:06:31,200
that's going to happen for you. I'm just
4833
03:06:31,200 --> 03:06:32,240
saying like that's how we think about
4834
03:06:32,240 --> 03:06:35,359
it. And so the question is less like 18
4835
03:06:35,359 --> 03:06:38,800
35 65 100,000. It's just what is the
4836
03:06:38,800 --> 03:06:39,840
likelihood that this thing can help me
4837
03:06:39,840 --> 03:06:42,000
solve my constraint. And so this gives
4838
03:06:42,000 --> 03:06:43,600
the most in-depth version of that I
4839
03:06:43,600 --> 03:06:45,600
possibly can, which is there are six
4840
03:06:45,600 --> 03:06:47,279
levels of constraints here. We do deep
4841
03:06:47,279 --> 03:06:48,560
dives on all of them using the stuff
4842
03:06:48,560 --> 03:06:51,359
that we know. And then in between you
4843
03:06:51,359 --> 03:06:53,279
can have access to me and the directors
4844
03:06:53,279 --> 03:06:56,240
are actually doing this in real time. Um
4845
03:06:56,240 --> 03:06:58,240
and obviously if you like are making any
4846
03:06:58,240 --> 03:07:01,359
amount of money the wealth workshop like
4847
03:07:01,359 --> 03:07:02,640
what are we talking about? What are we
4848
03:07:02,640 --> 03:07:04,479
even talking about? And so um that's
4849
03:07:04,479 --> 03:07:06,800
what we have that way. Okay. So with
4850
03:07:06,800 --> 03:07:09,359
that being said, uh there's 24 hours or
4851
03:07:09,359 --> 03:07:12,000
now whatever 23 and a half hours. Um
4852
03:07:12,000 --> 03:07:13,600
special thanks to everybody who's in uh
4853
03:07:13,600 --> 03:07:15,840
the ACQ scale advisory. Uh they're the
4854
03:07:15,840 --> 03:07:17,600
only reason. So that that little slide
4855
03:07:17,600 --> 03:07:19,200
thing that I just did I did this morning
4856
03:07:19,200 --> 03:07:22,000
in like 30 minutes because I just asked
4857
03:07:22,000 --> 03:07:23,520
them and I honestly was like I don't
4858
03:07:23,520 --> 03:07:25,120
know because some people might be like I
4859
03:07:25,120 --> 03:07:26,240
don't want them in and I've been like
4860
03:07:26,240 --> 03:07:28,399
okay. So I just kind of listen to um to
4861
03:07:28,399 --> 03:07:29,760
them. The reason it's 24 hours is
4862
03:07:29,760 --> 03:07:31,359
because I had 24 hours in September 1st
4863
03:07:31,359 --> 03:07:32,800
and they all the most of them selected
4864
03:07:32,800 --> 03:07:35,279
24 hours and so that's why it is. All
4865
03:07:35,279 --> 03:07:36,479
right. All right, with that being said,
4866
03:07:36,479 --> 03:07:38,000
uh let's rock and roll. Cool. I also got
4867
03:07:38,000 --> 03:07:39,920
a text from Cameron saying that you
4868
03:07:39,920 --> 03:07:41,680
figured out your constraint. So, thank
4869
03:07:41,680 --> 03:07:43,120
you Cameron. Appreciate it. Little
4870
03:07:43,120 --> 03:07:45,600
little boost. Um but yeah, so what I
4871
03:07:45,600 --> 03:07:48,080
want to do for this part four is we're
4872
03:07:48,080 --> 03:07:49,279
going to talk about playbooks by
4873
03:07:49,279 --> 03:07:51,040
business type number one. And then we're
4874
03:07:51,040 --> 03:07:52,880
just going to do real just
4875
03:07:52,880 --> 03:07:55,520
deconstrainings. Okay.
4876
03:07:55,520 --> 03:07:58,240
So, I want to start by kind of like
4877
03:07:58,240 --> 03:07:59,600
highlighting this point which is that
4878
03:07:59,600 --> 03:08:01,760
the thing that you need to do is hard,
4879
03:08:01,760 --> 03:08:03,920
right? Because if it were easy, you
4880
03:08:03,920 --> 03:08:05,200
would have already done it. Like we're
4881
03:08:05,200 --> 03:08:06,479
only constrained by the things that we
4882
03:08:06,479 --> 03:08:08,479
do not already know how to do. And so it
4883
03:08:08,479 --> 03:08:10,319
should seem obvious that if you don't
4884
03:08:10,319 --> 03:08:12,640
know how to do it, then it will feel
4885
03:08:12,640 --> 03:08:14,960
hard. But like if you think about when
4886
03:08:14,960 --> 03:08:16,399
you played a video game way back in the
4887
03:08:16,399 --> 03:08:18,319
past, right? When you get to a new level
4888
03:08:18,319 --> 03:08:19,520
you've never beaten before, you die a
4889
03:08:19,520 --> 03:08:20,399
bunch of times. You die a bunch of
4890
03:08:20,399 --> 03:08:21,920
times, then you figure it out. Now the
4891
03:08:21,920 --> 03:08:23,120
next time after you figure it out, you
4892
03:08:23,120 --> 03:08:24,160
play it, you don't even think about it.
4893
03:08:24,160 --> 03:08:25,359
You just go in the door, make a left,
4894
03:08:25,359 --> 03:08:26,640
fire two times at the guy, and keep
4895
03:08:26,640 --> 03:08:28,319
going, right? And it's because you have
4896
03:08:28,319 --> 03:08:30,319
no decisions to make. You know how to
4897
03:08:30,319 --> 03:08:33,120
beat the boss of that level, right?
4898
03:08:33,120 --> 03:08:36,800
And so it's the choice between two
4899
03:08:36,800 --> 03:08:38,240
apparently hard decisions, which is why
4900
03:08:38,240 --> 03:08:40,640
I think so many people get stuck, right?
4901
03:08:40,640 --> 03:08:43,520
It's between hard now or hard now and
4902
03:08:43,520 --> 03:08:46,399
later, right? And so when I frame it
4903
03:08:46,399 --> 03:08:47,680
that way, it makes it easier for me to
4904
03:08:47,680 --> 03:08:49,359
do the hard now thing because the other
4905
03:08:49,359 --> 03:08:51,120
thing is also still hard now and also
4906
03:08:51,120 --> 03:08:54,399
hard later. And so these um this will
4907
03:08:54,399 --> 03:08:55,920
seem familiar to some of the people
4908
03:08:55,920 --> 03:08:57,600
who've come to the the workshops in
4909
03:08:57,600 --> 03:08:59,359
person, but I think it's worth I think
4910
03:08:59,359 --> 03:09:03,279
it's worth highlighting this point.
4911
03:09:03,279 --> 03:09:05,840
So,
4912
03:09:05,840 --> 03:09:07,760
some of you guys have may have seen this
4913
03:09:07,760 --> 03:09:10,080
and if you have then this will just be a
4914
03:09:10,080 --> 03:09:13,840
reminder. Um,
4915
03:09:13,840 --> 03:09:17,120
and so this is a moniker of like common
4916
03:09:17,120 --> 03:09:19,680
um common sticking points that people
4917
03:09:19,680 --> 03:09:20,960
get into these kind of rock and hard
4918
03:09:20,960 --> 03:09:23,840
place scenarios. And so there are seven
4919
03:09:23,840 --> 03:09:25,600
of them that I have consistently seen
4920
03:09:25,600 --> 03:09:28,160
across businesses. The and I use ad
4921
03:09:28,160 --> 03:09:29,840
focus as like my own moniker. But the
4922
03:09:29,840 --> 03:09:31,760
first is avatar. And this is super
4923
03:09:31,760 --> 03:09:33,760
common in like the 1 to3 million range.
4924
03:09:33,760 --> 03:09:34,720
Sometimes a little bit earlier,
4925
03:09:34,720 --> 03:09:36,000
sometimes later, but 1 to three million,
4926
03:09:36,000 --> 03:09:37,279
it's like ripe for that. So if that's
4927
03:09:37,279 --> 03:09:40,319
you, this is pay attention. Um, but an
4928
03:09:40,319 --> 03:09:42,240
avatar issue is you're unclear on who
4929
03:09:42,240 --> 03:09:43,600
you want to serve. You've got some
4930
03:09:43,600 --> 03:09:45,439
customers that are lower, some customers
4931
03:09:45,439 --> 03:09:47,040
that are higher. You usually like the
4932
03:09:47,040 --> 03:09:48,479
ones that are higher and don't like the
4933
03:09:48,479 --> 03:09:49,760
ones that are lower as much, but if you
4934
03:09:49,760 --> 03:09:50,800
stop selling the ones that are lower,
4935
03:09:50,800 --> 03:09:52,399
you won't be able to payroll. So you're
4936
03:09:52,399 --> 03:09:54,160
not sure what to do, right? But the
4937
03:09:54,160 --> 03:09:56,000
strategic decision is which of these
4938
03:09:56,000 --> 03:09:57,040
customers do I think I can provide the
4939
03:09:57,040 --> 03:09:59,840
most value to? and how should I price
4940
03:09:59,840 --> 03:10:01,680
exclusively for this new avatar? Because
4941
03:10:01,680 --> 03:10:03,439
what typically happens is you've got a
4942
03:10:03,439 --> 03:10:05,120
high avatar and you've got a low avatar
4943
03:10:05,120 --> 03:10:06,880
and then you end up pricing if this were
4944
03:10:06,880 --> 03:10:08,319
like a line here, you end up pricing
4945
03:10:08,319 --> 03:10:10,720
somewhere around here. And that's the
4946
03:10:10,720 --> 03:10:12,640
issue because if you only serve this
4947
03:10:12,640 --> 03:10:14,080
high avatar, you could be pricing here.
4948
03:10:14,080 --> 03:10:16,000
So even if you had this drop in volume,
4949
03:10:16,000 --> 03:10:17,359
you'd be able to make up for it in
4950
03:10:17,359 --> 03:10:20,080
pricing power and then as by by
4951
03:10:20,080 --> 03:10:21,439
extension be able to make up your
4952
03:10:21,439 --> 03:10:23,840
profit. And so this is just one of the
4953
03:10:23,840 --> 03:10:25,520
seven issues. So right now, if you're
4954
03:10:25,520 --> 03:10:27,040
somebody who's like, I'm not sure which
4955
03:10:27,040 --> 03:10:28,880
customer I should go after, you're going
4956
03:10:28,880 --> 03:10:30,399
to look at this and you're going to want
4957
03:10:30,399 --> 03:10:31,760
to look at this next piece, which is
4958
03:10:31,760 --> 03:10:34,160
your LTV to CAC.
4959
03:10:34,160 --> 03:10:36,240
So I look at LTV to CAC for the cheaper
4960
03:10:36,240 --> 03:10:37,680
customer, LTV to CAC for the higher
4961
03:10:37,680 --> 03:10:39,200
customer. If LTV to CAC for the higher
4962
03:10:39,200 --> 03:10:40,720
customer is better, I then ask the
4963
03:10:40,720 --> 03:10:43,120
question, how can I do more of this so
4964
03:10:43,120 --> 03:10:45,520
that I can make up for my loss in in
4965
03:10:45,520 --> 03:10:47,920
low, right? And by doing that, I can
4966
03:10:47,920 --> 03:10:51,520
then re uh recolor or reshift the
4967
03:10:51,520 --> 03:10:52,880
percentage of customers I have in the
4968
03:10:52,880 --> 03:10:56,080
base to be these high high caliber
4969
03:10:56,080 --> 03:10:58,240
people. So that's number one. The next
4970
03:10:58,240 --> 03:10:59,760
is data which we talked about earlier,
4971
03:10:59,760 --> 03:11:01,359
right? These are the metrics. If you
4972
03:11:01,359 --> 03:11:02,560
don't have the metrics in your business,
4973
03:11:02,560 --> 03:11:04,640
you're like, well, I can't afford to go,
4974
03:11:04,640 --> 03:11:06,080
you know, get the metrics or make this
4975
03:11:06,080 --> 03:11:08,000
decision, but I can't afford not to make
4976
03:11:08,000 --> 03:11:09,920
this decision. So one, you have to be
4977
03:11:09,920 --> 03:11:11,359
able to operate on incomplete data. Two,
4978
03:11:11,359 --> 03:11:12,319
you want to think about directional
4979
03:11:12,319 --> 03:11:14,720
rather than absolute. And then three, if
4980
03:11:14,720 --> 03:11:16,240
you have a way of getting the data, then
4981
03:11:16,240 --> 03:11:17,840
that becomes your priority. Maybe that
4982
03:11:17,840 --> 03:11:19,279
means that you don't grow for a quarter,
4983
03:11:19,279 --> 03:11:20,560
but you have the data so you can grow
4984
03:11:20,560 --> 03:11:22,960
for the next three.
4985
03:11:22,960 --> 03:11:25,200
The next is focus. Now, this one I have
4986
03:11:25,200 --> 03:11:27,200
not mentioned at all at this point, but
4987
03:11:27,200 --> 03:11:29,680
is one of the the biggest ones. All
4988
03:11:29,680 --> 03:11:31,600
right, which is it's super common when
4989
03:11:31,600 --> 03:11:32,720
you're an entrepreneur. In the
4990
03:11:32,720 --> 03:11:34,000
beginning, you quit your job, you quit
4991
03:11:34,000 --> 03:11:34,960
your whatever, and then you start
4992
03:11:34,960 --> 03:11:36,000
something on your own. You take that one
4993
03:11:36,000 --> 03:11:37,680
big jump, and it's so rewarding because
4994
03:11:37,680 --> 03:11:38,800
you're still here. You're still in the
4995
03:11:38,800 --> 03:11:40,399
game. And so, if you've made that jump,
4996
03:11:40,399 --> 03:11:41,600
then what happens? you get this really
4997
03:11:41,600 --> 03:11:43,120
good reinforcement loop on a bad
4998
03:11:43,120 --> 03:11:44,800
behavior, which is jumping ship and
4999
03:11:44,800 --> 03:11:46,160
starting something new. That's what it
5000
03:11:46,160 --> 03:11:48,000
reinforces. Which is why it's my belief
5001
03:11:48,000 --> 03:11:49,200
that so many entrepreneurs are so
5002
03:11:49,200 --> 03:11:51,200
addicted to starting new things. You've
5003
03:11:51,200 --> 03:11:54,680
probably seen
5004
03:11:57,600 --> 03:12:03,479
this outline of mine. Oops. One more.
5005
03:12:03,840 --> 03:12:05,279
Okay. So, you've probably seen this
5006
03:12:05,279 --> 03:12:09,040
outline of mine that looks like this.
5007
03:12:09,040 --> 03:12:14,120
So you've got your uninformed optimism
5008
03:12:15,279 --> 03:12:18,720
and then you've got your
5009
03:12:18,720 --> 03:12:22,279
informed pessimism.
5010
03:12:23,840 --> 03:12:27,960
You've got your valley of despair.
5011
03:12:32,560 --> 03:12:34,720
Then you've got informed
5012
03:12:34,720 --> 03:12:36,560
optimism.
5013
03:12:36,560 --> 03:12:41,479
And then you've got achievement.
5014
03:12:43,840 --> 03:12:46,080
All right. So these are kind of like the
5015
03:12:46,080 --> 03:12:47,920
five stages that that happen in
5016
03:12:47,920 --> 03:12:50,160
entrepreneurship. But the problem is so
5017
03:12:50,160 --> 03:12:52,560
many people just repeat one, you know,
5018
03:12:52,560 --> 03:12:56,240
one, two, three over and over and over
5019
03:12:56,240 --> 03:12:57,600
again. They get to the value to spare
5020
03:12:57,600 --> 03:12:58,720
and then they say, you know what,
5021
03:12:58,720 --> 03:12:59,920
there's this other thing that looks
5022
03:12:59,920 --> 03:13:01,680
interesting. Let me ride that ride
5023
03:13:01,680 --> 03:13:03,279
again. And so they keep going over and
5024
03:13:03,279 --> 03:13:05,040
over again. And so what happens is right
5025
03:13:05,040 --> 03:13:06,880
now, I remember I had a lady who came
5026
03:13:06,880 --> 03:13:09,520
who was uh who had a yoga studio and a
5027
03:13:09,520 --> 03:13:12,920
chocolate factory.
5028
03:13:13,200 --> 03:13:14,880
If you're on here, I love you. I I don't
5029
03:13:14,880 --> 03:13:15,920
I don't want to I don't want you to feel
5030
03:13:15,920 --> 03:13:18,080
bad. Um but like it was one of the most
5031
03:13:18,080 --> 03:13:20,240
hilarious like I'm building a platform.
5032
03:13:20,240 --> 03:13:22,560
It's like I love you and I believe you.
5033
03:13:22,560 --> 03:13:26,399
Um but the thing is this is that you
5034
03:13:26,399 --> 03:13:28,800
have some crazy reason why you think
5035
03:13:28,800 --> 03:13:30,160
that you should have two completely
5036
03:13:30,160 --> 03:13:33,399
different businesses.
5037
03:13:33,600 --> 03:13:36,399
You probably shouldn't because it's hard
5038
03:13:36,399 --> 03:13:38,720
enough to do one and try to make two win
5039
03:13:38,720 --> 03:13:40,399
is near impossible because you're
5040
03:13:40,399 --> 03:13:41,359
basically just taking all the
5041
03:13:41,359 --> 03:13:43,520
horsepower, all your mental brain power,
5042
03:13:43,520 --> 03:13:45,680
all your spare time, all your talent
5043
03:13:45,680 --> 03:13:48,640
between both companies and splitting it.
5044
03:13:48,640 --> 03:13:50,640
When what happens is if you concentrate
5045
03:13:50,640 --> 03:13:52,399
all of that attention, all of those
5046
03:13:52,399 --> 03:13:54,080
resources, all of that talent, all of
5047
03:13:54,080 --> 03:13:56,960
your money on one opportunity, like I
5048
03:13:56,960 --> 03:13:58,319
talked about earlier, 1 million, 10
5049
03:13:58,319 --> 03:13:59,520
million, 100 million, almost all
5050
03:13:59,520 --> 03:14:01,120
opportunities can get to 100 million.
5051
03:14:01,120 --> 03:14:02,960
And so if you're not there, it's not
5052
03:14:02,960 --> 03:14:04,080
moving fast enough, it's usually because
5053
03:14:04,080 --> 03:14:05,439
you have too much going on. You can't go
5054
03:14:05,439 --> 03:14:07,120
deep enough with anything. Right? If
5055
03:14:07,120 --> 03:14:09,520
you've ever done this, if you've ever
5056
03:14:09,520 --> 03:14:10,640
cut things out of your life and you're
5057
03:14:10,640 --> 03:14:12,319
like, "Wow, I feel so much better. Man,
5058
03:14:12,319 --> 03:14:13,840
I feel so much smarter. I feel like I
5059
03:14:13,840 --> 03:14:15,439
can solve these problems that were once
5060
03:14:15,439 --> 03:14:17,120
seemingly impossible. I can now solve
5061
03:14:17,120 --> 03:14:18,319
them really easily." It's because you
5062
03:14:18,319 --> 03:14:20,000
have bandwidth, right? You literally can
5063
03:14:20,000 --> 03:14:21,760
just think through the second and third
5064
03:14:21,760 --> 03:14:23,439
order consequences deeper on each
5065
03:14:23,439 --> 03:14:26,239
business. And so right now, one of the
5066
03:14:26,239 --> 03:14:27,600
big strategic issues that comes up is
5067
03:14:27,600 --> 03:14:29,120
that you simply have too many things
5068
03:14:29,120 --> 03:14:30,880
that you're pursuing.
5069
03:14:30,880 --> 03:14:33,359
So, what's the hard hard now versus hard
5070
03:14:33,359 --> 03:14:34,880
later? You're going to have to make the
5071
03:14:34,880 --> 03:14:36,800
hard call and pick the baby that you
5072
03:14:36,800 --> 03:14:39,680
want to keep. Little Sophie's choice. It
5073
03:14:39,680 --> 03:14:41,840
sucks. And I only say this to somebody
5074
03:14:41,840 --> 03:14:43,439
who has struggled with this one more
5075
03:14:43,439 --> 03:14:46,479
than any of the others of the seven. And
5076
03:14:46,479 --> 03:14:49,040
it's so painstakingly difficult. Um,
5077
03:14:49,040 --> 03:14:50,960
I'll tell you a little Well, we're all
5078
03:14:50,960 --> 03:14:52,319
here. We're all hanging out. Let's just
5079
03:14:52,319 --> 03:14:54,160
do it. So, I'll tell you how to get over
5080
03:14:54,160 --> 03:14:56,720
this because I think entrepreneurs more
5081
03:14:56,720 --> 03:14:59,200
than just about anyone are super add.
5082
03:14:59,200 --> 03:15:01,040
And so if you have this creative mojo,
5083
03:15:01,040 --> 03:15:02,239
you've got this juice that you want to
5084
03:15:02,239 --> 03:15:04,319
get out, there's a reason that I write
5085
03:15:04,319 --> 03:15:08,080
books, it's not the best use of my time,
5086
03:15:08,080 --> 03:15:10,000
but there is a reason I do it. And the
5087
03:15:10,000 --> 03:15:12,800
main reason is because it gets out this
5088
03:15:12,800 --> 03:15:14,399
energy that I would otherwise be using
5089
03:15:14,399 --> 03:15:17,120
to break my business. The business runs
5090
03:15:17,120 --> 03:15:19,439
exceptionally well when it has this much
5091
03:15:19,439 --> 03:15:21,439
of me. If I'm there all the time, I
5092
03:15:21,439 --> 03:15:23,600
break too much stuff. So, which is why
5093
03:15:23,600 --> 03:15:24,720
it works well for me to like work with
5094
03:15:24,720 --> 03:15:26,399
companies like once a year because like
5095
03:15:26,399 --> 03:15:27,520
it's like here's all the stuff that'll
5096
03:15:27,520 --> 03:15:30,080
give you 12 months of work, right? Um,
5097
03:15:30,080 --> 03:15:31,680
but what are the divisions? If we think
5098
03:15:31,680 --> 03:15:33,920
about the divisions of a business, what
5099
03:15:33,920 --> 03:15:37,760
divisions benefit from
5100
03:15:37,760 --> 03:15:40,479
somebody who has lots of innovation,
5101
03:15:40,479 --> 03:15:42,640
right? Like, let's think about it. Which
5102
03:15:42,640 --> 03:15:45,680
one benefits the most? I'll give you a
5103
03:15:45,680 --> 03:15:48,880
hint. It rhymes with marketing.
5104
03:15:48,880 --> 03:15:51,200
And so, if you're like, man, I have
5105
03:15:51,200 --> 03:15:52,640
trouble focusing. I like doing lots of
5106
03:15:52,640 --> 03:15:54,080
different things. Then what I would
5107
03:15:54,080 --> 03:15:55,520
encourage you to do, and this is what
5108
03:15:55,520 --> 03:16:00,760
took me way too long to figure out,
5109
03:16:07,680 --> 03:16:09,600
one front door that leads to money,
5110
03:16:09,600 --> 03:16:11,680
which is your business. But if you want
5111
03:16:11,680 --> 03:16:14,399
to have lead magnet number one, lead,
5112
03:16:14,399 --> 03:16:16,800
you know, lead magnet number two, lead
5113
03:16:16,800 --> 03:16:19,200
magnet number three, uh, you know,
5114
03:16:19,200 --> 03:16:20,720
media,
5115
03:16:20,720 --> 03:16:25,359
um, you know, uh, content,
5116
03:16:25,359 --> 03:16:27,040
ads,
5117
03:16:27,040 --> 03:16:29,439
scaling, roadmap. I don't know if you
5118
03:16:29,439 --> 03:16:32,560
guys paid attention during the uh during
5119
03:16:32,560 --> 03:16:34,239
the the the money models uh,
5120
03:16:34,239 --> 03:16:36,319
presentation. Uh I was like if you guys
5121
03:16:36,319 --> 03:16:39,680
have gotten value from my free podcast,
5122
03:16:39,680 --> 03:16:43,120
free course, free event, free keynotes,
5123
03:16:43,120 --> 03:16:46,000
um free scaling roadmap, free books,
5124
03:16:46,000 --> 03:16:47,760
free audio book, like I had all the all
5125
03:16:47,760 --> 03:16:49,040
the different things and I free
5126
03:16:49,040 --> 03:16:51,439
newsletter. I was like my god, I do so
5127
03:16:51,439 --> 03:16:53,439
much stuff. And so the thing is it's
5128
03:16:53,439 --> 03:16:55,920
like I have so much juice that if I
5129
03:16:55,920 --> 03:16:58,479
don't squeeze the hell out of it, but I
5130
03:16:58,479 --> 03:17:00,239
have to squeeze it in a way that doesn't
5131
03:17:00,239 --> 03:17:02,560
break the business. Imagine all of that
5132
03:17:02,560 --> 03:17:04,239
horsepower. And this is what the earlier
5133
03:17:04,239 --> 03:17:05,600
part of my career was like. I would
5134
03:17:05,600 --> 03:17:07,520
literally take all of this and I'd be
5135
03:17:07,520 --> 03:17:09,279
like, "All right, we got a new sales
5136
03:17:09,279 --> 03:17:10,479
script. All right, we got we're building
5137
03:17:10,479 --> 03:17:11,840
another landing page. Hey, we're also
5138
03:17:11,840 --> 03:17:13,040
going to, you know, change this about
5139
03:17:13,040 --> 03:17:14,239
our delivery. Hey, we're also going to
5140
03:17:14,239 --> 03:17:16,000
be, you know, changing this on on the
5141
03:17:16,000 --> 03:17:17,439
back end over here. Oh, by the way,
5142
03:17:17,439 --> 03:17:18,960
finance, if you can redo, you know, the
5143
03:17:18,960 --> 03:17:20,399
way that you're reporting this stuff,
5144
03:17:20,399 --> 03:17:21,760
that'll be awesome." And I would just go
5145
03:17:21,760 --> 03:17:23,680
around like a Tasmanian bed devil just
5146
03:17:23,680 --> 03:17:26,160
breaking things, right? And so, no one
5147
03:17:26,160 --> 03:17:27,520
ever could breathe because I had
5148
03:17:27,520 --> 03:17:29,040
everyone buried underwater because it
5149
03:17:29,040 --> 03:17:30,160
takes two seconds for me to make a
5150
03:17:30,160 --> 03:17:31,359
directive. it takes two weeks for them
5151
03:17:31,359 --> 03:17:32,960
to to actually deliver on it. And I
5152
03:17:32,960 --> 03:17:34,640
could make commands and make directives
5153
03:17:34,640 --> 03:17:36,080
fast than people could do them, right?
5154
03:17:36,080 --> 03:17:38,239
And so you have to you have to pull back
5155
03:17:38,239 --> 03:17:39,760
and realize and I had that cost of
5156
03:17:39,760 --> 03:17:41,520
change thing was that like you have to
5157
03:17:41,520 --> 03:17:44,319
realize that some things will stay
5158
03:17:44,319 --> 03:17:46,160
imperfect.
5159
03:17:46,160 --> 03:17:49,680
But striving to constantly change things
5160
03:17:49,680 --> 03:17:52,080
does not make them more perfect. It
5161
03:17:52,080 --> 03:17:54,160
actually makes them more imperfect. And
5162
03:17:54,160 --> 03:17:55,680
took me a very long time to realize
5163
03:17:55,680 --> 03:17:57,840
that. And then eventually as Leila and I
5164
03:17:57,840 --> 03:17:59,200
learned to work together better and
5165
03:17:59,200 --> 03:18:01,200
better, it's like I just kept naturally
5166
03:18:01,200 --> 03:18:02,479
gravitating more and more to the front
5167
03:18:02,479 --> 03:18:03,920
of the business because I didn't hurt
5168
03:18:03,920 --> 03:18:06,560
the business when I made 17, believe it
5169
03:18:06,560 --> 03:18:08,560
or not, one of my first uh lead magnets
5170
03:18:08,560 --> 03:18:11,120
for gym launch was 17 money models uh
5171
03:18:11,120 --> 03:18:13,040
for for making gyms wly profitable. And
5172
03:18:13,040 --> 03:18:14,239
so it's just like these are the models
5173
03:18:14,239 --> 03:18:15,359
that we use to build, you know,
5174
03:18:15,359 --> 03:18:18,319
profitable gyms. I had nine profitable
5175
03:18:18,319 --> 03:18:19,359
frameworks. I had all these different,
5176
03:18:19,359 --> 03:18:20,560
you know, frameworks that I would use to
5177
03:18:20,560 --> 03:18:21,680
build gyms. And I'd write these
5178
03:18:21,680 --> 03:18:24,000
basically just full books. I mean like
5179
03:18:24,000 --> 03:18:26,640
my my lead magnets were like 120 pages.
5180
03:18:26,640 --> 03:18:29,760
Like they were full books. Um and I
5181
03:18:29,760 --> 03:18:31,200
would do these and that's why like
5182
03:18:31,200 --> 03:18:32,560
people would come in after consuming and
5183
03:18:32,560 --> 03:18:34,000
be like my god this isn't because I
5184
03:18:34,000 --> 03:18:35,680
would just pour my heart into it because
5185
03:18:35,680 --> 03:18:39,680
I have an overactive mind probably like
5186
03:18:39,680 --> 03:18:42,640
you do. And so I this might be one of
5187
03:18:42,640 --> 03:18:44,000
the bigger like for the right person
5188
03:18:44,000 --> 03:18:45,920
maybe like 5% of you this might change
5189
03:18:45,920 --> 03:18:47,920
your life. Like just realizing that you
5190
03:18:47,920 --> 03:18:50,239
take all your ADD and don't apply it to
5191
03:18:50,239 --> 03:18:51,439
your business apply it to your
5192
03:18:51,439 --> 03:18:54,160
marketing. Okay.
5193
03:18:54,160 --> 03:18:55,520
Oh, I didn't finish this. See, there's
5194
03:18:55,520 --> 03:18:57,920
my there's my example of ad. Okay. So,
5195
03:18:57,920 --> 03:18:59,439
so you got to pick your avatar. You got
5196
03:18:59,439 --> 03:19:00,319
to pick you got to make sure you're
5197
03:19:00,319 --> 03:19:02,000
getting your data. You have to focus and
5198
03:19:02,000 --> 03:19:03,760
kill kill the babies that sounds
5199
03:19:03,760 --> 03:19:05,200
aggressive. Kill kill kill the the
5200
03:19:05,200 --> 03:19:07,040
businesses that you uh that that are not
5201
03:19:07,040 --> 03:19:09,680
the main thing. Um,
5202
03:19:09,680 --> 03:19:11,359
by the way, the new business, the second
5203
03:19:11,359 --> 03:19:13,520
one, the one you started afterwards,
5204
03:19:13,520 --> 03:19:15,200
always seems like it's the one that has
5205
03:19:15,200 --> 03:19:17,439
more opportunity in it. That's why you
5206
03:19:17,439 --> 03:19:20,000
decided to do it. But that's also
5207
03:19:20,000 --> 03:19:23,520
probably not true because um the people
5208
03:19:23,520 --> 03:19:25,840
who are in there also know that there's
5209
03:19:25,840 --> 03:19:27,600
crap in that business too. You just
5210
03:19:27,600 --> 03:19:28,720
haven't figured it out yet because
5211
03:19:28,720 --> 03:19:31,279
you're on my little optimism trail.
5212
03:19:31,279 --> 03:19:33,680
You're like up here. Okay, the next one
5213
03:19:33,680 --> 03:19:38,120
is over uh overexpansion
5214
03:19:38,399 --> 03:19:40,080
which really just means undertalented.
5215
03:19:40,080 --> 03:19:44,279
So this is the uh supply constraint.
5216
03:19:45,120 --> 03:19:47,600
So, if you have one location and you
5217
03:19:47,600 --> 03:19:49,520
opened a second location and you're
5218
03:19:49,520 --> 03:19:51,359
like, "Okay, but now my two locations,
5219
03:19:51,359 --> 03:19:53,040
like I had one location that was here, I
5220
03:19:53,040 --> 03:19:55,279
opened a second one, both went down."
5221
03:19:55,279 --> 03:19:56,479
Then you say, "Okay, well, I cut my
5222
03:19:56,479 --> 03:19:58,080
profit in half between two, but now
5223
03:19:58,080 --> 03:19:59,760
what's the best decision? I should open
5224
03:19:59,760 --> 03:20:02,080
a third location, right? And it goes to
5225
03:20:02,080 --> 03:20:03,680
crap. Now you have three times the
5226
03:20:03,680 --> 03:20:05,359
liability and even less profit. No
5227
03:20:05,359 --> 03:20:07,120
bueno." So, it's not to say that you
5228
03:20:07,120 --> 03:20:08,399
shouldn't open locations, you shouldn't
5229
03:20:08,399 --> 03:20:09,520
expand. Of course, you should expand.
5230
03:20:09,520 --> 03:20:10,560
That's the goal if you're doing a good
5231
03:20:10,560 --> 03:20:11,520
job, right? You should expand the
5232
03:20:11,520 --> 03:20:13,439
business. But if you expand too fast,
5233
03:20:13,439 --> 03:20:14,880
it's not that you expand too fast, it's
5234
03:20:14,880 --> 03:20:16,319
that you had too little talent to
5235
03:20:16,319 --> 03:20:18,880
support you. And that's the thing is
5236
03:20:18,880 --> 03:20:20,640
that with one business, one location,
5237
03:20:20,640 --> 03:20:22,000
one smaller thing, you have more
5238
03:20:22,000 --> 03:20:23,840
coverage. As soon as you expand beyond
5239
03:20:23,840 --> 03:20:25,120
your purview, if you don't have other
5240
03:20:25,120 --> 03:20:28,080
people have good decision-making power
5241
03:20:28,080 --> 03:20:30,640
and ability, competence,
5242
03:20:30,640 --> 03:20:31,760
things will start falling through the
5243
03:20:31,760 --> 03:20:33,920
cracks. And so it's a people issue. And
5244
03:20:33,920 --> 03:20:35,520
so overexpansion just means that you
5245
03:20:35,520 --> 03:20:36,720
don't have enough good people. Now, this
5246
03:20:36,720 --> 03:20:38,160
is can be tough though because you're
5247
03:20:38,160 --> 03:20:39,439
like, "Well, now that I'm I've got these
5248
03:20:39,439 --> 03:20:40,720
two locations, I can't afford to bring
5249
03:20:40,720 --> 03:20:41,840
anyone else in because the performance
5250
03:20:41,840 --> 03:20:43,520
has dropped." So, you basically have one
5251
03:20:43,520 --> 03:20:45,600
of two options. Option one is that you
5252
03:20:45,600 --> 03:20:47,040
essentially just kill yourself. That
5253
03:20:47,040 --> 03:20:48,319
sounded aggressive. I mean, like kill
5254
03:20:48,319 --> 03:20:49,920
yourself working-wise. Like, you just
5255
03:20:49,920 --> 03:20:52,880
bury yourself to try and like, you know,
5256
03:20:52,880 --> 03:20:54,560
breathe life into this thing again and
5257
03:20:54,560 --> 03:20:56,399
work overtime at both to get them above
5258
03:20:56,399 --> 03:20:58,399
so that you can get the cash flow or you
5259
03:20:58,399 --> 03:20:59,840
just realize that you made a boo boo and
5260
03:20:59,840 --> 03:21:00,880
you might have to give up your profit
5261
03:21:00,880 --> 03:21:02,080
for six months to get somebody else in
5262
03:21:02,080 --> 03:21:03,279
who can manage it and then hopefully
5263
03:21:03,279 --> 03:21:05,359
they turn it up. But like this is why
5264
03:21:05,359 --> 03:21:06,960
business owners are paid more. We take
5265
03:21:06,960 --> 03:21:09,279
on more risk. Like that's like that's
5266
03:21:09,279 --> 03:21:10,399
why we get that's why we get the
5267
03:21:10,399 --> 03:21:12,160
paycheck when it works out, right? We
5268
03:21:12,160 --> 03:21:13,279
take on more risk than other people
5269
03:21:13,279 --> 03:21:15,920
other people do. So overexpansion, you
5270
03:21:15,920 --> 03:21:18,880
solve that by cutting losses, by
5271
03:21:18,880 --> 03:21:20,880
overworking yourself or by bringing
5272
03:21:20,880 --> 03:21:23,120
someone in and underprofiting. Those are
5273
03:21:23,120 --> 03:21:25,359
your options.
5274
03:21:25,359 --> 03:21:26,960
But if you don't do anything, you will
5275
03:21:26,960 --> 03:21:28,479
just stay there and eventually just like
5276
03:21:28,479 --> 03:21:29,840
burn out because you will make no money
5277
03:21:29,840 --> 03:21:30,960
and then you'll work like you'll be
5278
03:21:30,960 --> 03:21:32,000
working all the hours of the day and
5279
03:21:32,000 --> 03:21:33,840
literally just not make anything. I only
5280
03:21:33,840 --> 03:21:36,160
know that because I've done it. The next
5281
03:21:36,160 --> 03:21:40,080
one is um compensation.
5282
03:21:40,080 --> 03:21:41,840
So this one sometimes happens. I would
5283
03:21:41,840 --> 03:21:43,200
say this is the rarest of the list, but
5284
03:21:43,200 --> 03:21:44,640
if you're in this category, this applies
5285
03:21:44,640 --> 03:21:47,040
to you. Um
5286
03:21:47,040 --> 03:21:49,040
this can be over or under compensation.
5287
03:21:49,040 --> 03:21:50,399
So the HVAC, you know, thing that I was
5288
03:21:50,399 --> 03:21:51,920
telling saying earlier, if it's like,
5289
03:21:51,920 --> 03:21:53,680
man, you know, we can't we can't find
5290
03:21:53,680 --> 03:21:54,640
good talent. It's like, have you
5291
03:21:54,640 --> 03:21:57,120
considered paying more? like some of the
5292
03:21:57,120 --> 03:21:59,279
best returns I gotten by far is taking
5293
03:21:59,279 --> 03:22:01,120
whatever the market rate is and then
5294
03:22:01,120 --> 03:22:03,439
always paying top 10 percentile, top
5295
03:22:03,439 --> 03:22:07,040
eight, 15th percentile of uh of of roles
5296
03:22:07,040 --> 03:22:09,520
that are key lever points within the
5297
03:22:09,520 --> 03:22:11,840
business. And so to this day, I still
5298
03:22:11,840 --> 03:22:13,200
think some of the best value arbitrage
5299
03:22:13,200 --> 03:22:14,960
that exists is on talent always. I mean,
5300
03:22:14,960 --> 03:22:17,120
think about the reason that Zuck would
5301
03:22:17,120 --> 03:22:18,720
pay a hundred million signing bonuses
5302
03:22:18,720 --> 03:22:20,479
for AI because he believes the return is
5303
03:22:20,479 --> 03:22:22,080
there, right? And obviously the return
5304
03:22:22,080 --> 03:22:23,359
is there and he's done this a lot of
5305
03:22:23,359 --> 03:22:25,680
times, right? Now, on the flip side, uh,
5306
03:22:25,680 --> 03:22:26,800
so that's when you're not paying people
5307
03:22:26,800 --> 03:22:28,239
enough. On the other hand, you can also
5308
03:22:28,239 --> 03:22:29,680
pay people too much. If you have a
5309
03:22:29,680 --> 03:22:30,800
frozen yogurt store, you're not going to
5310
03:22:30,800 --> 03:22:32,080
be able to do profit shares to the front
5311
03:22:32,080 --> 03:22:33,279
front desk people. It's not going to
5312
03:22:33,279 --> 03:22:36,160
work, right? Um, and so we want to make
5313
03:22:36,160 --> 03:22:37,760
sure if you're like, okay, but if I were
5314
03:22:37,760 --> 03:22:39,760
to change this rockin hardplay scenario
5315
03:22:39,760 --> 03:22:41,279
if I'm going to change this compensation
5316
03:22:41,279 --> 03:22:44,080
structure, then I'm going to lose I'm
5317
03:22:44,080 --> 03:22:45,680
going to lose people, right? I might I
5318
03:22:45,680 --> 03:22:46,960
might lose some talent. So, I'll tell
5319
03:22:46,960 --> 03:22:49,359
you how to do this. So, the price raise
5320
03:22:49,359 --> 03:22:51,439
letter,
5321
03:22:51,439 --> 03:22:54,560
this guy, you guys all have it. Um, by
5322
03:22:54,560 --> 03:22:57,279
the way, banger, so good. But you can
5323
03:22:57,279 --> 03:22:59,439
use that same concept and apply it to
5324
03:22:59,439 --> 03:23:01,680
compensation. And so the way you do that
5325
03:23:01,680 --> 03:23:05,200
is you say, "Hey Sarah, uh, I know that
5326
03:23:05,200 --> 03:23:06,560
you came in and I said I would give you
5327
03:23:06,560 --> 03:23:08,000
50% of revenue that you're that you were
5328
03:23:08,000 --> 03:23:11,040
generating. So I owe it to you one to
5329
03:23:11,040 --> 03:23:12,720
apologize and I want to tell you why."
5330
03:23:12,720 --> 03:23:14,160
So, I told you that I was going to have
5331
03:23:14,160 --> 03:23:15,600
this big vision for how you could grow
5332
03:23:15,600 --> 03:23:17,600
your career here, have more opportunity.
5333
03:23:17,600 --> 03:23:19,040
But based on the current compensation
5334
03:23:19,040 --> 03:23:20,960
structure, this business will never grow
5335
03:23:20,960 --> 03:23:22,319
because there's just not enough capital
5336
03:23:22,319 --> 03:23:25,120
in order to to expand. And so, I owe it
5337
03:23:25,120 --> 03:23:26,640
to you and I owe it to everybody else in
5338
03:23:26,640 --> 03:23:28,319
this business to give this business and
5339
03:23:28,319 --> 03:23:30,319
our customers a shot so we can help more
5340
03:23:30,319 --> 03:23:32,479
people. And so, this is what we have to
5341
03:23:32,479 --> 03:23:34,319
do. The decisions already been made. I
5342
03:23:34,319 --> 03:23:35,600
have to change compensation and it has
5343
03:23:35,600 --> 03:23:37,359
to be like this. That being said, that
5344
03:23:37,359 --> 03:23:39,439
wasn't our original agreement. And so I
5345
03:23:39,439 --> 03:23:41,680
want to give you um you know three
5346
03:23:41,680 --> 03:23:44,479
months to think about it. Um or you
5347
03:23:44,479 --> 03:23:45,840
could say I want to give you you know a
5348
03:23:45,840 --> 03:23:47,520
week to think about it. This is what the
5349
03:23:47,520 --> 03:23:49,279
compensation would be going forward. Um
5350
03:23:49,279 --> 03:23:52,560
but then what we do is we say hey your
5351
03:23:52,560 --> 03:23:55,200
your uh price your compensation is going
5352
03:23:55,200 --> 03:23:57,760
to change in 90 days. All right. That
5353
03:23:57,760 --> 03:23:59,359
way they have a three-month runway and
5354
03:23:59,359 --> 03:24:00,880
then you also if they tell you the next
5355
03:24:00,880 --> 03:24:02,080
morning or two days later that they
5356
03:24:02,080 --> 03:24:03,920
don't want to do it, you also have three
5357
03:24:03,920 --> 03:24:05,760
months to go back fill them with
5358
03:24:05,760 --> 03:24:07,359
somebody that's cheaper. And if you do
5359
03:24:07,359 --> 03:24:08,880
it earlier, you can obviously, you know,
5360
03:24:08,880 --> 03:24:10,800
excuse them earlier if you want, or they
5361
03:24:10,800 --> 03:24:12,160
might just say, "It's okay." And I'll
5362
03:24:12,160 --> 03:24:14,000
say this, of the times I've had to do
5363
03:24:14,000 --> 03:24:16,720
it, I really have not lost many people
5364
03:24:16,720 --> 03:24:18,160
because most people are like, "I get it.
5365
03:24:18,160 --> 03:24:19,680
I did think it was a little bit rich."
5366
03:24:19,680 --> 03:24:20,640
You know what I mean? And they they kind
5367
03:24:20,640 --> 03:24:21,600
of get it. They're like, "This is a
5368
03:24:21,600 --> 03:24:22,640
little above market." Like, I'm not
5369
03:24:22,640 --> 03:24:23,600
going to say anything because I'll take
5370
03:24:23,600 --> 03:24:25,600
the money, but like I don't know when
5371
03:24:25,600 --> 03:24:28,000
the when the music's going to end. So
5372
03:24:28,000 --> 03:24:32,160
the next one is underpriced. Okay.
5373
03:24:32,160 --> 03:24:34,399
So underpriced
5374
03:24:34,399 --> 03:24:37,279
is god it's so like if I'm looking I'm
5375
03:24:37,279 --> 03:24:40,960
looking I'm looking at you guys right
5376
03:24:40,960 --> 03:24:43,359
I want to say at least 40% of you are
5377
03:24:43,359 --> 03:24:45,200
underpriced
5378
03:24:45,200 --> 03:24:47,200
and so taking to the natural extreme so
5379
03:24:47,200 --> 03:24:48,560
think about what a service business does
5380
03:24:48,560 --> 03:24:50,319
when it's when it's super super old and
5381
03:24:50,319 --> 03:24:53,200
has done well you can you can pretty
5382
03:24:53,200 --> 03:24:55,439
much draw a straight line between the
5383
03:24:55,439 --> 03:24:57,920
price of services this is with humans
5384
03:24:57,920 --> 03:25:00,800
right price of services um and the
5385
03:25:00,800 --> 03:25:02,080
experience and skill of the service
5386
03:25:02,080 --> 03:25:04,720
provider. So if you want to demonstrate
5387
03:25:04,720 --> 03:25:07,279
that you have more skill, you can know
5388
03:25:07,279 --> 03:25:10,000
by how much you charge because taking
5389
03:25:10,000 --> 03:25:11,279
the other natural extreme, if you did
5390
03:25:11,279 --> 03:25:12,640
everything you do for a dollar, you
5391
03:25:12,640 --> 03:25:14,319
would have pro hopefully you would have
5392
03:25:14,319 --> 03:25:15,840
a lot of people who take you up on it,
5393
03:25:15,840 --> 03:25:17,520
right? And then as you slowly keep doing
5394
03:25:17,520 --> 03:25:18,880
that, you'd be supply constraint, supply
5395
03:25:18,880 --> 03:25:20,000
constraint, supply constraint,
5396
03:25:20,000 --> 03:25:21,279
eventually you'd reach some point where
5397
03:25:21,279 --> 03:25:22,960
you'd be right at the equilibrium.
5398
03:25:22,960 --> 03:25:24,560
That's not the most profitable point in
5399
03:25:24,560 --> 03:25:27,279
the business because ideally you keep
5400
03:25:27,279 --> 03:25:28,960
having more demand and you keep being
5401
03:25:28,960 --> 03:25:31,200
able to keep driving that price up. And
5402
03:25:31,200 --> 03:25:33,279
so that is where the brand loop of you
5403
03:25:33,279 --> 03:25:35,520
doing a good job, people telling people,
5404
03:25:35,520 --> 03:25:38,319
continues to spin. And so you want to be
5405
03:25:38,319 --> 03:25:40,560
always driving price up because it means
5406
03:25:40,560 --> 03:25:41,840
you're doing a good job. It's an
5407
03:25:41,840 --> 03:25:44,319
indicator that that quality has
5408
03:25:44,319 --> 03:25:47,040
sustained at each at each increment in
5409
03:25:47,040 --> 03:25:49,120
in value creation. And so most of you,
5410
03:25:49,120 --> 03:25:51,600
that's why pricing is such a big one.
5411
03:25:51,600 --> 03:25:52,960
I'll actually I'll read you what what
5412
03:25:52,960 --> 03:25:54,800
Cameron texted me. He's my friend from
5413
03:25:54,800 --> 03:25:57,680
from elementary school. And uh he we
5414
03:25:57,680 --> 03:26:00,239
called up on him on um uh during the
5415
03:26:00,239 --> 03:26:02,080
live. So he said uh this is such an
5416
03:26:02,080 --> 03:26:03,439
amazing workshop already helped me so
5417
03:26:03,439 --> 03:26:04,880
much in actually understanding my
5418
03:26:04,880 --> 03:26:06,479
constraints. I was sitting here thinking
5419
03:26:06,479 --> 03:26:08,800
I have a manpower constraint but really
5420
03:26:08,800 --> 03:26:10,319
my current biggest constraint is cash
5421
03:26:10,319 --> 03:26:12,880
flow. If I fix that then I'll have the
5422
03:26:12,880 --> 03:26:15,200
cash to better attract top talent.
5423
03:26:15,200 --> 03:26:16,720
Right? And that's the point is that like
5424
03:26:16,720 --> 03:26:19,040
it's sometimes it's several orders or
5425
03:26:19,040 --> 03:26:20,960
several steps they have to reverse
5426
03:26:20,960 --> 03:26:22,319
engineer to get to how you actually
5427
03:26:22,319 --> 03:26:24,319
solve the problem rather than what the
5428
03:26:24,319 --> 03:26:26,720
problem is. Right? And so the the profit
5429
03:26:26,720 --> 03:26:28,560
playbooks will help you with that. Um,
5430
03:26:28,560 --> 03:26:30,479
and that's why like it's there's three
5431
03:26:30,479 --> 03:26:32,000
playbooks just around pricing because
5432
03:26:32,000 --> 03:26:34,319
it's such a powerful lever. Um, and then
5433
03:26:34,319 --> 03:26:36,160
this one
5434
03:26:36,160 --> 03:26:39,520
is single product. So, this basically
5435
03:26:39,520 --> 03:26:40,800
just means that you have insufficient
5436
03:26:40,800 --> 03:26:44,880
LTV, but you're unwilling um to add an
5437
03:26:44,880 --> 03:26:46,720
additional upsell or additional thing.
5438
03:26:46,720 --> 03:26:47,840
So, it's like, hey, we're, you know,
5439
03:26:47,840 --> 03:26:50,880
we're selling customers um and but our
5440
03:26:50,880 --> 03:26:52,560
our margins continue to compress
5441
03:26:52,560 --> 03:26:54,160
compress compress compress compress
5442
03:26:54,160 --> 03:26:55,920
right now. And so it means that you have
5443
03:26:55,920 --> 03:26:58,000
to have an increase in LTV, right?
5444
03:26:58,000 --> 03:26:59,920
Because the cost of leads will always
5445
03:26:59,920 --> 03:27:01,439
only go one direction, which is up. So
5446
03:27:01,439 --> 03:27:04,560
think about this.
5447
03:27:04,560 --> 03:27:06,640
If you're making content, the first
5448
03:27:06,640 --> 03:27:08,399
people that ever join your world when
5449
03:27:08,399 --> 03:27:09,920
you're an early content creator are
5450
03:27:09,920 --> 03:27:11,120
going to be the people who are the most
5451
03:27:11,120 --> 03:27:12,800
interested in this stuff, right? Because
5452
03:27:12,800 --> 03:27:14,560
you aren't that good at making content
5453
03:27:14,560 --> 03:27:16,319
and it's super early in the algorithm
5454
03:27:16,319 --> 03:27:17,920
for their, you know, displaying your
5455
03:27:17,920 --> 03:27:20,000
stuff and they bought in, right? If
5456
03:27:20,000 --> 03:27:22,080
you're running ads, the first people
5457
03:27:22,080 --> 03:27:23,680
that a ad platform is going to show your
5458
03:27:23,680 --> 03:27:25,520
ads to are the most likely to convert
5459
03:27:25,520 --> 03:27:27,359
because that they can only do it at that
5460
03:27:27,359 --> 03:27:29,120
level of spend. And the higher up your
5461
03:27:29,120 --> 03:27:30,640
spend goes, the colder and colder the
5462
03:27:30,640 --> 03:27:32,319
audiences are, the lower and lower the
5463
03:27:32,319 --> 03:27:34,399
conversion is, right? Which is why you
5464
03:27:34,399 --> 03:27:37,680
can only achieve tremendous scale with
5465
03:27:37,680 --> 03:27:40,239
spend. when you have a tremendous money
5466
03:27:40,239 --> 03:27:43,120
model that can still monetize a much
5467
03:27:43,120 --> 03:27:46,560
broader and colder base or you have a
5468
03:27:46,560 --> 03:27:48,880
brand that just has a massive warm
5469
03:27:48,880 --> 03:27:50,800
audience you've already provided value
5470
03:27:50,800 --> 03:27:52,640
to, right? So, you either expand your
5471
03:27:52,640 --> 03:27:54,399
warm audience or you find a way to
5472
03:27:54,399 --> 03:27:56,960
monetize warm cold audience better. But
5473
03:27:56,960 --> 03:27:59,520
in either of those scenarios, typically
5474
03:27:59,520 --> 03:28:01,200
what happens is your margins continue to
5475
03:28:01,200 --> 03:28:02,800
impress and you keep trying to hope that
5476
03:28:02,800 --> 03:28:04,000
you could go back to your old customer
5477
03:28:04,000 --> 03:28:05,680
acquisition cost, but you can't because
5478
03:28:05,680 --> 03:28:07,760
cost of acquisition only goes up. it
5479
03:28:07,760 --> 03:28:09,760
literally only goes up. So the best
5480
03:28:09,760 --> 03:28:11,040
deals you're ever going to get on
5481
03:28:11,040 --> 03:28:12,560
getting customers, unless you know,
5482
03:28:12,560 --> 03:28:14,000
barring you have some major issues with
5483
03:28:14,000 --> 03:28:15,680
how you acquire customers, is going to
5484
03:28:15,680 --> 03:28:18,319
be now. So really think about that. And
5485
03:28:18,319 --> 03:28:20,239
so if you have a single product,
5486
03:28:20,239 --> 03:28:21,680
sometimes it's time to just create the
5487
03:28:21,680 --> 03:28:23,920
upsell. And when you're like, what is my
5488
03:28:23,920 --> 03:28:25,359
upsell going to be? I'll give you a rule
5489
03:28:25,359 --> 03:28:28,880
of thumb for my upsells, but typically
5490
03:28:28,880 --> 03:28:31,200
so this this launch was an exception to
5491
03:28:31,200 --> 03:28:33,680
that mostly because uh logistics of of
5492
03:28:33,680 --> 03:28:35,359
doing payment was difficult with the
5493
03:28:35,359 --> 03:28:39,520
volume. But typically I I go 5x
5494
03:28:39,520 --> 03:28:40,960
and the reason for that so the
5495
03:28:40,960 --> 03:28:42,800
appropriate price for like scale
5496
03:28:42,800 --> 03:28:45,200
advisory should be like if I were to
5497
03:28:45,200 --> 03:28:46,960
just do normal pricing should be between
5498
03:28:46,960 --> 03:28:49,120
30 and 36,000. That would be the correct
5499
03:28:49,120 --> 03:28:51,920
price for it. It's 18. the correct price
5500
03:28:51,920 --> 03:28:54,080
for it is because typically 20% of
5501
03:28:54,080 --> 03:28:55,760
customers
5502
03:28:55,760 --> 03:28:57,840
will take something that's five times as
5503
03:28:57,840 --> 03:29:00,160
expensive because customers tend to be
5504
03:29:00,160 --> 03:29:02,800
fractal 8020. And so if 20% of your
5505
03:29:02,800 --> 03:29:04,080
customers are willing and able to spend
5506
03:29:04,080 --> 03:29:05,920
five times more, then it means that with
5507
03:29:05,920 --> 03:29:08,399
each additional upsell or service that
5508
03:29:08,399 --> 03:29:11,040
you add to a continuum, then you double
5509
03:29:11,040 --> 03:29:12,560
revenue with each of them. All right, so
5510
03:29:12,560 --> 03:29:14,160
I'll do the math real quick. Is this
5511
03:29:14,160 --> 03:29:15,760
cool? I like this stuff I like geek out
5512
03:29:15,760 --> 03:29:17,120
on.
5513
03:29:17,120 --> 03:29:20,120
Okay.
5514
03:29:20,160 --> 03:29:24,479
So, let's say you sell um 100 people
5515
03:29:24,479 --> 03:29:27,040
at $100.
5516
03:29:27,040 --> 03:29:30,920
Cool. So, you've got $10,000.
5517
03:29:32,000 --> 03:29:37,319
Okay. Now, we have an upsell that 20%
5518
03:29:37,600 --> 03:29:40,720
take. So, we got 20 people and we're
5519
03:29:40,720 --> 03:29:44,920
doing five times the price. Remember
5520
03:29:49,439 --> 03:29:51,120
And here we could say, you know what, we
5521
03:29:51,120 --> 03:29:55,359
also have another thing that's
5522
03:29:55,359 --> 03:29:58,640
$2,500 that we expect 20%. So four
5523
03:29:58,640 --> 03:30:02,279
people are going to take that.
5524
03:30:06,000 --> 03:30:09,800
So we go from $10,000,
5525
03:30:10,399 --> 03:30:12,960
here's the cool part, to $30,000 in
5526
03:30:12,960 --> 03:30:14,800
revenue.
5527
03:30:14,800 --> 03:30:16,960
But this is the sexiest part of all.
5528
03:30:16,960 --> 03:30:20,560
This is for servicing a 100 customers.
5529
03:30:20,560 --> 03:30:24,760
This is for servicing
5530
03:30:25,120 --> 03:30:28,080
124 customers because all we do is we
5531
03:30:28,080 --> 03:30:32,160
add this 20 and this four. We triple the
5532
03:30:32,160 --> 03:30:34,640
business.
5533
03:30:34,640 --> 03:30:38,399
So that's how you solve one of these.
5534
03:30:38,399 --> 03:30:40,800
Okay. Is that cool? I think it's I think
5535
03:30:40,800 --> 03:30:42,720
this stuff's cool. like this stuff like
5536
03:30:42,720 --> 03:30:44,319
when I understood this part of like this
5537
03:30:44,319 --> 03:30:46,239
is how pricing to like this is how I do
5538
03:30:46,239 --> 03:30:49,120
pricing um is you reverse engineer to
5539
03:30:49,120 --> 03:30:52,080
the willingness to pay of the avatar you
5540
03:30:52,080 --> 03:30:54,160
have rather than trying to say well it
5541
03:30:54,160 --> 03:30:56,080
cost me this much like it's cost plus
5542
03:30:56,080 --> 03:30:57,520
pricing is not how you price things you
5543
03:30:57,520 --> 03:31:00,720
price things by willingness to pay.
5544
03:31:00,720 --> 03:31:02,960
Okay, so let's get really tactical.
5545
03:31:02,960 --> 03:31:05,760
Hopefully that was good. Um ad focus is
5546
03:31:05,760 --> 03:31:06,960
these are seven of the most common
5547
03:31:06,960 --> 03:31:09,439
things that people get stuck on. Um, if
5548
03:31:09,439 --> 03:31:10,880
any of those, I'm sure more than one of
5549
03:31:10,880 --> 03:31:12,319
you guys, you know, resonated with one
5550
03:31:12,319 --> 03:31:14,080
of those things. Make the hard call,
5551
03:31:14,080 --> 03:31:16,080
make the decision, debottleneck the
5552
03:31:16,080 --> 03:31:18,800
business. Okay. Now, I want to talk
5553
03:31:18,800 --> 03:31:21,600
about a couple of the more common kind
5554
03:31:21,600 --> 03:31:24,239
of playbooks. Okay. So, this is more
5555
03:31:24,239 --> 03:31:26,720
just like me observing a lot of
5556
03:31:26,720 --> 03:31:29,520
different businesses over the years. And
5557
03:31:29,520 --> 03:31:33,279
so, um, like people behave in patterns
5558
03:31:33,279 --> 03:31:34,800
and they typically come in with similar
5559
03:31:34,800 --> 03:31:36,479
skill sets and similar personalities. So
5560
03:31:36,479 --> 03:31:38,399
like there's people who are good at you
5561
03:31:38,399 --> 03:31:40,399
know like Instagram which typically have
5562
03:31:40,399 --> 03:31:41,600
a little bit of a different personality
5563
03:31:41,600 --> 03:31:42,479
than people who are like really good
5564
03:31:42,479 --> 03:31:43,600
YouTubers which are different than like
5565
03:31:43,600 --> 03:31:44,720
the big live streamers. Now of course
5566
03:31:44,720 --> 03:31:45,760
there's people who just like learn how
5567
03:31:45,760 --> 03:31:47,120
to do everything but people who are
5568
03:31:47,120 --> 03:31:48,800
attracted to one or the other tend to
5569
03:31:48,800 --> 03:31:50,720
have different kind of like psychoraphs
5570
03:31:50,720 --> 03:31:52,479
and as a result they approach problems
5571
03:31:52,479 --> 03:31:53,920
in similar ways which means they
5572
03:31:53,920 --> 03:31:55,680
typically have similar problems and are
5573
03:31:55,680 --> 03:31:58,000
constrained by the same things. And so I
5574
03:31:58,000 --> 03:31:59,359
want to give you a couple of examples
5575
03:31:59,359 --> 03:32:01,040
that I think represent kind of like with
5576
03:32:01,040 --> 03:32:03,600
broad brush strokes many of you. Um and
5577
03:32:03,600 --> 03:32:05,840
so let's talk about the influencer
5578
03:32:05,840 --> 03:32:07,920
playbook. So if you can can we do a
5579
03:32:07,920 --> 03:32:10,399
poll? Is that possible?
5580
03:32:10,399 --> 03:32:12,560
Can we do a poll?
5581
03:32:12,560 --> 03:32:14,399
If we can't do a poll, you can just say
5582
03:32:14,399 --> 03:32:17,359
it in the chat. Oh, do I need to talk a
5583
03:32:17,359 --> 03:32:20,520
little faster?
5584
03:32:20,800 --> 03:32:22,239
I can talk faster if you want me to talk
5585
03:32:22,239 --> 03:32:24,399
faster. Okay.
5586
03:32:24,399 --> 03:32:25,760
So, part of the reason, by the way, that
5587
03:32:25,760 --> 03:32:28,239
I um that I that I put words on the
5588
03:32:28,239 --> 03:32:32,160
slides for uh my presentations um as
5589
03:32:32,160 --> 03:32:34,560
much as I can is because it it slows
5590
03:32:34,560 --> 03:32:39,600
down my cadence. Um which is better, but
5591
03:32:39,600 --> 03:32:42,160
I'm flawed. Okay, so influencer
5592
03:32:42,160 --> 03:32:45,600
playbook. Um let's let's rock here. I
5593
03:32:45,600 --> 03:32:46,720
wanted So, I'll tell you what the poll
5594
03:32:46,720 --> 03:32:47,760
was going to be. The poll is just going
5595
03:32:47,760 --> 03:32:51,840
to be uh how how many of you guys use
5596
03:32:51,840 --> 03:32:54,560
organic as your method for getting
5597
03:32:54,560 --> 03:32:57,200
customers? So, how many of you guys I
5598
03:32:57,200 --> 03:32:59,120
know she's joking. How many of you guys
5599
03:32:59,120 --> 03:33:02,239
just just put a one in the chat. Um if
5600
03:33:02,239 --> 03:33:03,920
you
5601
03:33:03,920 --> 03:33:06,239
if you use organic as your primary means
5602
03:33:06,239 --> 03:33:09,720
of getting customers.
5603
03:33:10,399 --> 03:33:13,120
Yes. Okay.
5604
03:33:13,120 --> 03:33:15,040
Give me some ones. We got some ones.
5605
03:33:15,040 --> 03:33:20,960
Okay. Great. So if you're an influencer,
5606
03:33:20,960 --> 03:33:22,160
I think this is really important to
5607
03:33:22,160 --> 03:33:24,239
understand.
5608
03:33:24,239 --> 03:33:26,800
Okay? So pay attention. So right now,
5609
03:33:26,800 --> 03:33:28,800
let's say that you're doing $1 million
5610
03:33:28,800 --> 03:33:30,399
per year. It doesn't really matter. Just
5611
03:33:30,399 --> 03:33:34,000
like just say this is your current.
5612
03:33:34,000 --> 03:33:36,239
All right? You're currently doing a
5613
03:33:36,239 --> 03:33:38,640
million dollar a year. Now, I want you
5614
03:33:38,640 --> 03:33:41,120
to imagine you've got a hundred,000
5615
03:33:41,120 --> 03:33:44,120
followers
5616
03:33:45,040 --> 03:33:46,720
that are following you right now, and
5617
03:33:46,720 --> 03:33:49,040
that's what's generating
5618
03:33:49,040 --> 03:33:51,040
this million dollars a year. Now, when
5619
03:33:51,040 --> 03:33:52,800
you post,
5620
03:33:52,800 --> 03:33:54,239
you normally are getting, let's say,
5621
03:33:54,239 --> 03:33:58,080
like, you know, one to two% of your
5622
03:33:58,080 --> 03:34:01,520
traffic of that of that 100K is actually
5623
03:34:01,520 --> 03:34:04,399
seeing your posts. Right?
5624
03:34:04,399 --> 03:34:07,200
Now, when you make a call to action,
5625
03:34:07,200 --> 03:34:10,479
it's more like 0.1%. It's a little dot
5626
03:34:10,479 --> 03:34:13,200
inside of there.
5627
03:34:13,200 --> 03:34:15,200
The reason that there's typically a huge
5628
03:34:15,200 --> 03:34:16,960
amount that you can increase with a
5629
03:34:16,960 --> 03:34:18,640
business that has organic when they run
5630
03:34:18,640 --> 03:34:21,520
ads is that
5631
03:34:21,520 --> 03:34:25,399
if you think about it like this,
5632
03:34:25,520 --> 03:34:27,840
you're currently monetizing this 1 to
5633
03:34:27,840 --> 03:34:33,120
2%. Okay? When you run ads,
5634
03:34:33,120 --> 03:34:36,000
you basically reach down below there and
5635
03:34:36,000 --> 03:34:38,160
just monetize a larger slice because
5636
03:34:38,160 --> 03:34:40,960
you're able to reach a way broader
5637
03:34:40,960 --> 03:34:42,880
amount of the audience that you have
5638
03:34:42,880 --> 03:34:46,399
with your paid ads.
5639
03:34:46,399 --> 03:34:48,399
It's not necessarily expanding your
5640
03:34:48,399 --> 03:34:50,880
audience. It's simply t it's just
5641
03:34:50,880 --> 03:34:52,479
reaching a higher percentage of them on
5642
03:34:52,479 --> 03:34:54,319
a consistent basis. So, there's
5643
03:34:54,319 --> 03:34:56,560
something else that does this too, which
5644
03:34:56,560 --> 03:35:00,359
is a sales team.
5645
03:35:01,600 --> 03:35:04,160
Both of these things don't expand, not
5646
03:35:04,160 --> 03:35:06,319
really your capacity because most people
5647
03:35:06,319 --> 03:35:08,319
who are influencers who then start
5648
03:35:08,319 --> 03:35:10,239
running ads or do organic and then start
5649
03:35:10,239 --> 03:35:11,680
running ads. You're not running like
5650
03:35:11,680 --> 03:35:13,439
branding and value based ads. If you did
5651
03:35:13,439 --> 03:35:15,439
that, you could actually expand the pie.
5652
03:35:15,439 --> 03:35:16,960
But most people run kind of right hook
5653
03:35:16,960 --> 03:35:19,040
direct response ads, which is fine. And
5654
03:35:19,040 --> 03:35:21,040
use your your free content as your way
5655
03:35:21,040 --> 03:35:22,640
of kind of top of funnel of letting
5656
03:35:22,640 --> 03:35:24,239
people know you're they're aware of you
5657
03:35:24,239 --> 03:35:25,840
and providing value. And then you kind
5658
03:35:25,840 --> 03:35:28,000
of scoop back up with ads and sales
5659
03:35:28,000 --> 03:35:29,520
teams. Both these things kind of reach
5660
03:35:29,520 --> 03:35:31,120
further down. But the thing is is that
5661
03:35:31,120 --> 03:35:32,720
each of these levers you can only pull
5662
03:35:32,720 --> 03:35:35,760
once. So you'll get an instant 2x, 3x,
5663
03:35:35,760 --> 03:35:37,040
5x, which sometimes can be really
5664
03:35:37,040 --> 03:35:38,239
material. So I don't want to downplay
5665
03:35:38,239 --> 03:35:39,359
that. It can be really big for a
5666
03:35:39,359 --> 03:35:41,040
business. But once you do that, that
5667
03:35:41,040 --> 03:35:42,479
lever is pulled. There's nothing else
5668
03:35:42,479 --> 03:35:44,560
you can do. And so then you go back to
5669
03:35:44,560 --> 03:35:46,880
what's the constraint. And so in those
5670
03:35:46,880 --> 03:35:49,680
businesses, you want to make the I'm
5671
03:35:49,680 --> 03:35:50,960
going to go off the off the page here,
5672
03:35:50,960 --> 03:35:54,160
but you want to expand the pyramid so
5673
03:35:54,160 --> 03:35:56,800
that ideally this one to 2% or wherever
5674
03:35:56,800 --> 03:35:58,960
your ads drawn is that now that same
5675
03:35:58,960 --> 03:36:04,399
percentage captures even more. Okay. So
5676
03:36:04,399 --> 03:36:05,600
if you were an influence and you're
5677
03:36:05,600 --> 03:36:07,600
like, I want to grow my business. What
5678
03:36:07,600 --> 03:36:10,720
should I do? Well, there's a number of
5679
03:36:10,720 --> 03:36:12,560
things kind of like many many roads lead
5680
03:36:12,560 --> 03:36:14,000
to Rome or many many paths up the
5681
03:36:14,000 --> 03:36:16,640
mountain. You could just start running
5682
03:36:16,640 --> 03:36:18,800
paid ads. And if you did that, you would
5683
03:36:18,800 --> 03:36:20,800
probably make more. And by the way,
5684
03:36:20,800 --> 03:36:22,960
running paid ads so much easier than
5685
03:36:22,960 --> 03:36:24,160
making content if you just didn't know
5686
03:36:24,160 --> 03:36:25,279
that. You just like don't know how to
5687
03:36:25,279 --> 03:36:26,640
click the buttons. It takes like an
5688
03:36:26,640 --> 03:36:28,239
afternoon. Like it's really not hard to
5689
03:36:28,239 --> 03:36:30,560
learn. Making content that's good, much
5690
03:36:30,560 --> 03:36:32,160
harder. So, just take your best
5691
03:36:32,160 --> 03:36:34,239
performing content, slice a CTA at the
5692
03:36:34,239 --> 03:36:36,960
end, CTA being call to action of like uh
5693
03:36:36,960 --> 03:36:38,399
literally take your top 10 from the
5694
03:36:38,399 --> 03:36:40,080
year, highest performing pieces of
5695
03:36:40,080 --> 03:36:41,920
content that are not like meme stuff,
5696
03:36:41,920 --> 03:36:43,760
but stuff that's like specific to your
5697
03:36:43,760 --> 03:36:45,200
avatar, the stuff that you actually like
5698
03:36:45,200 --> 03:36:46,399
the type of people you actually want to
5699
03:36:46,399 --> 03:36:48,399
help, and then say, "Hey, by the way,
5700
03:36:48,399 --> 03:36:50,880
like um like let's say I had a, you
5701
03:36:50,880 --> 03:36:52,080
know, something about businesses and
5702
03:36:52,080 --> 03:36:53,200
making money, whatever." I would say,
5703
03:36:53,200 --> 03:36:55,200
"Hey, uh by the way, I have seven other
5704
03:36:55,200 --> 03:36:56,640
things that are just like that that I
5705
03:36:56,640 --> 03:36:58,080
want to give to you for free if you opt
5706
03:36:58,080 --> 03:36:59,920
in over here. Let me show you a visual
5707
03:36:59,920 --> 03:37:01,840
of it." Awesome. And if you're the right
5708
03:37:01,840 --> 03:37:03,040
type of person, I'd love to book a call
5709
03:37:03,040 --> 03:37:03,920
with you. Or if you have something
5710
03:37:03,920 --> 03:37:04,960
that's a straight checkout, it's like
5711
03:37:04,960 --> 03:37:06,319
and if you want, you get the whole
5712
03:37:06,319 --> 03:37:07,520
complete thing on the next page,
5713
03:37:07,520 --> 03:37:10,160
whatever. Right? And so the idea here is
5714
03:37:10,160 --> 03:37:12,080
that you can go ads as one way, one
5715
03:37:12,080 --> 03:37:14,319
lever you can pull. You can do sales
5716
03:37:14,319 --> 03:37:15,680
teams as another way because that's just
5717
03:37:15,680 --> 03:37:16,640
going to convert a higher percentage of
5718
03:37:16,640 --> 03:37:19,760
the audience. Um, this expanding the
5719
03:37:19,760 --> 03:37:21,520
triangle this way is going to be more
5720
03:37:21,520 --> 03:37:24,239
versus better content. So how when do
5721
03:37:24,239 --> 03:37:25,200
you decide to do more? When do you
5722
03:37:25,200 --> 03:37:27,760
decide to do better? I always do more
5723
03:37:27,760 --> 03:37:30,319
first and then typically after a certain
5724
03:37:30,319 --> 03:37:32,720
amount of more it accordians. So I'll
5725
03:37:32,720 --> 03:37:34,319
give you kind of like a a verbal
5726
03:37:34,319 --> 03:37:37,040
example. So if I go I make one YouTube
5727
03:37:37,040 --> 03:37:39,040
video a week at some point I say you
5728
03:37:39,040 --> 03:37:40,239
know what I'll bet you I could get to
5729
03:37:40,239 --> 03:37:41,920
like three three YouTube videos a week.
5730
03:37:41,920 --> 03:37:44,000
So then I expand my my three YouTube
5731
03:37:44,000 --> 03:37:45,840
videos a week and then all of a sudden I
5732
03:37:45,840 --> 03:37:47,840
look at you know I look at my last month
5733
03:37:47,840 --> 03:37:49,439
or two months and I'm like man you know
5734
03:37:49,439 --> 03:37:51,359
80% of my views came from three videos
5735
03:37:51,359 --> 03:37:53,279
that happened over the last you know 12
5736
03:37:53,279 --> 03:37:55,600
weeks. I'll bet you if I spent more time
5737
03:37:55,600 --> 03:37:57,359
on just making the videos better, I
5738
03:37:57,359 --> 03:37:58,720
would get even more out of it. So then
5739
03:37:58,720 --> 03:38:00,800
it cordians back down. And then I say
5740
03:38:00,800 --> 03:38:01,920
and then I learn all the things that
5741
03:38:01,920 --> 03:38:02,960
make something good. And then I say,
5742
03:38:02,960 --> 03:38:04,880
okay, can I do that repeatedly and do
5743
03:38:04,880 --> 03:38:06,399
more of them? And so it's very natural
5744
03:38:06,399 --> 03:38:08,160
to have this better versus more, better
5745
03:38:08,160 --> 03:38:10,080
versus more that happens with content.
5746
03:38:10,080 --> 03:38:11,600
So I don't think there's a right answer.
5747
03:38:11,600 --> 03:38:12,800
But typically, if you've been stuck for
5748
03:38:12,800 --> 03:38:14,000
a while, you're going to have to do one
5749
03:38:14,000 --> 03:38:15,359
or the other. And if I have to bias,
5750
03:38:15,359 --> 03:38:18,560
I'll typically do more first.
5751
03:38:18,560 --> 03:38:21,600
Now, for anyone who who tends to
5752
03:38:21,600 --> 03:38:23,439
monetize, I I'll give you a couple
5753
03:38:23,439 --> 03:38:26,640
couple platforms. So, if you monetize on
5754
03:38:26,640 --> 03:38:28,720
if you have a YouTube uh audience, if
5755
03:38:28,720 --> 03:38:29,920
you have an Instagram audience or even a
5756
03:38:29,920 --> 03:38:31,359
Tik Tok audience. So, something that we
5757
03:38:31,359 --> 03:38:32,560
have found that's worked exceptionally
5758
03:38:32,560 --> 03:38:34,560
well for a lot of companies is they
5759
03:38:34,560 --> 03:38:36,160
actually direct almost all of their
5760
03:38:36,160 --> 03:38:38,399
traffic towards Instagram. So even
5761
03:38:38,399 --> 03:38:39,600
though they have a YouTube, they could
5762
03:38:39,600 --> 03:38:40,800
have they could obviously go straight to
5763
03:38:40,800 --> 03:38:42,080
checkout or have a link there, which is
5764
03:38:42,080 --> 03:38:44,239
fine, but you can also have people just
5765
03:38:44,239 --> 03:38:46,880
like DM me on Instagram and Tik Tok.
5766
03:38:46,880 --> 03:38:48,319
Like Tik Tok's been notoriously
5767
03:38:48,319 --> 03:38:49,600
difficult to monetize for anything
5768
03:38:49,600 --> 03:38:52,160
expensive. So Tik Tok shop and low
5769
03:38:52,160 --> 03:38:53,840
ticket, you know, consumerbased products
5770
03:38:53,840 --> 03:38:55,680
tend to do really well with Tik Tok. But
5771
03:38:55,680 --> 03:38:58,080
anything that's in the thousands or B2B,
5772
03:38:58,080 --> 03:39:00,239
much harder time. The only people I've
5773
03:39:00,239 --> 03:39:02,319
seen succeed with that is that they say
5774
03:39:02,319 --> 03:39:04,399
their call to action on their Tik Tok is
5775
03:39:04,399 --> 03:39:06,399
DM me on Instagram and then they have a
5776
03:39:06,399 --> 03:39:08,800
DM funnel. So, what's a DM funnel? So,
5777
03:39:08,800 --> 03:39:12,000
if you guys saw um on the launch, we had
5778
03:39:12,000 --> 03:39:14,720
like book or comment book or DM book or
5779
03:39:14,720 --> 03:39:16,800
whatever as a call to action on some of
5780
03:39:16,800 --> 03:39:17,920
the posts, especially the green man
5781
03:39:17,920 --> 03:39:20,720
posts. And so, um if you look at like
5782
03:39:20,720 --> 03:39:24,080
the Guinness record uh video on my
5783
03:39:24,080 --> 03:39:25,279
Instagram, it should be in the first
5784
03:39:25,279 --> 03:39:27,520
like 12 or so, you'll see it has like
5785
03:39:27,520 --> 03:39:30,080
20,000 comments on it. And it's because
5786
03:39:30,080 --> 03:39:31,520
the CTA in there was like, "Hey, if you
5787
03:39:31,520 --> 03:39:33,600
want the free stuff uh from the launch,
5788
03:39:33,600 --> 03:39:35,680
comment, I think it was book." And so
5789
03:39:35,680 --> 03:39:37,439
they commented book and then because of
5790
03:39:37,439 --> 03:39:39,040
that there's many chat automation that
5791
03:39:39,040 --> 03:39:40,720
just fires and then sends them the thing
5792
03:39:40,720 --> 03:39:42,560
they say yes and then it sent them the
5793
03:39:42,560 --> 03:39:44,319
link. But by doing that you build a
5794
03:39:44,319 --> 03:39:45,920
whole another list and you'll be able to
5795
03:39:45,920 --> 03:39:48,720
actually turn views into leads and leads
5796
03:39:48,720 --> 03:39:50,000
into conversations because the
5797
03:39:50,000 --> 03:39:51,200
conversions will happen in the
5798
03:39:51,200 --> 03:39:55,040
conversations. So you're like okay that
5799
03:39:55,040 --> 03:39:56,640
would be like an influencer playbook if
5800
03:39:56,640 --> 03:39:58,160
we're like how do I grow the influencer
5801
03:39:58,160 --> 03:40:01,120
team provided sorry influencers revenue
5802
03:40:01,120 --> 03:40:03,200
provided they don't have a supply
5803
03:40:03,200 --> 03:40:04,560
constraint. So that's what I'm going to
5804
03:40:04,560 --> 03:40:05,760
go deep on these because I want to solve
5805
03:40:05,760 --> 03:40:06,640
as many of these problems for you guys
5806
03:40:06,640 --> 03:40:08,479
as you can. All right. So it would be
5807
03:40:08,479 --> 03:40:10,640
combination of ads versus sales teams.
5808
03:40:10,640 --> 03:40:12,640
Pick one. More content versus better
5809
03:40:12,640 --> 03:40:14,880
content. Pick one. And then I would add
5810
03:40:14,880 --> 03:40:17,680
in a CTA with many chat um as the
5811
03:40:17,680 --> 03:40:20,080
mechanism behind making that that work.
5812
03:40:20,080 --> 03:40:21,520
Doing that with an influencer business
5813
03:40:21,520 --> 03:40:25,359
can like immediately grow the company.
5814
03:40:25,359 --> 03:40:27,920
Okay. So,
5815
03:40:27,920 --> 03:40:31,120
so, so I was putting the, uh, putting
5816
03:40:31,120 --> 03:40:32,720
icons in and putting visuals in for this
5817
03:40:32,720 --> 03:40:35,600
presentation. Um, and I accidentally
5818
03:40:35,600 --> 03:40:38,319
said, uh, give me a icon for Homer
5819
03:40:38,319 --> 03:40:41,279
services instead of home services. And
5820
03:40:41,279 --> 03:40:44,239
so, and so gave me this, which I thought
5821
03:40:44,239 --> 03:40:47,040
was hilarious, and so I left it in. Um,
5822
03:40:47,040 --> 03:40:48,560
but if you're a home service business,
5823
03:40:48,560 --> 03:40:49,840
right, so you're brickandmortar, you've
5824
03:40:49,840 --> 03:40:51,439
got trucks, you've got routes, you've
5825
03:40:51,439 --> 03:40:53,120
got technicians, uh, you've got
5826
03:40:53,120 --> 03:40:56,800
tradesmen. um really common couple
5827
03:40:56,800 --> 03:40:59,520
things. So number one, if you're not
5828
03:40:59,520 --> 03:41:00,880
running any ads and it's all word of
5829
03:41:00,880 --> 03:41:03,439
mouth, if you run ads, it's like ads in
5830
03:41:03,439 --> 03:41:05,760
home services for whatever reason, it's
5831
03:41:05,760 --> 03:41:07,040
just like the competition is just not
5832
03:41:07,040 --> 03:41:09,040
that sophisticated. Like if you just run
5833
03:41:09,040 --> 03:41:11,279
like simple lead ads and call them, you
5834
03:41:11,279 --> 03:41:13,760
do exceptionally well. Um I've also
5835
03:41:13,760 --> 03:41:15,920
found that home services in general tend
5836
03:41:15,920 --> 03:41:18,160
to have really really terrible websites.
5837
03:41:18,160 --> 03:41:20,319
So, they'll have like a hidden button
5838
03:41:20,319 --> 03:41:22,880
that no one can ever find that says like
5839
03:41:22,880 --> 03:41:24,880
talk to a rep or it says, you know,
5840
03:41:24,880 --> 03:41:27,200
request a quote or request an invoice.
5841
03:41:27,200 --> 03:41:29,040
Horrendous, right? No one wants to opt
5842
03:41:29,040 --> 03:41:30,720
in for that and they still get traffic,
5843
03:41:30,720 --> 03:41:32,399
right? Because the whole industry is so
5844
03:41:32,399 --> 03:41:34,960
supply constrained. But if we fix that
5845
03:41:34,960 --> 03:41:37,760
by adding a sales motion, adding a
5846
03:41:37,760 --> 03:41:40,640
nurture rep, jacking up the prices so
5847
03:41:40,640 --> 03:41:42,800
that we actually meet like it's okay
5848
03:41:42,800 --> 03:41:44,319
that we sell fewer. That's fine. We
5849
03:41:44,319 --> 03:41:45,600
can't even handle the volume we have. we
5850
03:41:45,600 --> 03:41:46,640
might as well make more cash flow so
5851
03:41:46,640 --> 03:41:48,640
that we can hire more people, right? But
5852
03:41:48,640 --> 03:41:50,239
page optimization. So, this is this is
5853
03:41:50,239 --> 03:41:51,840
just having done so many home services
5854
03:41:51,840 --> 03:41:53,920
businesses, these are the common things
5855
03:41:53,920 --> 03:41:55,920
that you probably need to be looking at.
5856
03:41:55,920 --> 03:41:58,640
Um, and I think the reason home services
5857
03:41:58,640 --> 03:42:01,040
typically suck at sales is because they
5858
03:42:01,040 --> 03:42:02,399
don't have to be good and they can still
5859
03:42:02,399 --> 03:42:04,160
get business. They also typically suck
5860
03:42:04,160 --> 03:42:05,520
at marketing because they don't have to
5861
03:42:05,520 --> 03:42:07,439
be good and they can still get business,
5862
03:42:07,439 --> 03:42:09,439
which is why they tend to be price
5863
03:42:09,439 --> 03:42:10,880
constrained. Now, part of the reason
5864
03:42:10,880 --> 03:42:12,160
they have price constraints for those
5865
03:42:12,160 --> 03:42:14,479
who are in home services
5866
03:42:14,479 --> 03:42:17,279
um is because they believe that they
5867
03:42:17,279 --> 03:42:19,840
sell a commodity, which maybe you do,
5868
03:42:19,840 --> 03:42:23,439
but that's your choice. So, if you're in
5869
03:42:23,439 --> 03:42:25,760
home services, as a reminder again,
5870
03:42:25,760 --> 03:42:29,279
because there's common themes here,
5871
03:42:29,279 --> 03:42:32,399
you can win on speed,
5872
03:42:32,399 --> 03:42:34,880
you can win on risk,
5873
03:42:34,880 --> 03:42:38,520
you can win on ease.
5874
03:42:38,560 --> 03:42:42,840
These are your three vectors of value.
5875
03:42:44,560 --> 03:42:46,160
And so we have to think what are the big
5876
03:42:46,160 --> 03:42:47,920
fears of a customer. They think it's
5877
03:42:47,920 --> 03:42:51,239
going to be overbudget.
5878
03:42:52,479 --> 03:42:55,680
They think it's going to be
5879
03:42:55,680 --> 03:42:59,800
uh overbudget overtime
5880
03:43:02,319 --> 03:43:04,479
and headache,
5881
03:43:04,479 --> 03:43:07,680
right? And so we want to guarantee
5882
03:43:07,680 --> 03:43:10,399
around these things. And so I would say
5883
03:43:10,399 --> 03:43:12,000
pick one of these that you think you
5884
03:43:12,000 --> 03:43:14,399
absolutely can win on and then lean into
5885
03:43:14,399 --> 03:43:16,319
it. Speed is an excellent vector to beat
5886
03:43:16,319 --> 03:43:18,000
people on. And then the natural thing
5887
03:43:18,000 --> 03:43:19,359
that comes back is like, well, I've got
5888
03:43:19,359 --> 03:43:20,720
subcontractors. I've got these other
5889
03:43:20,720 --> 03:43:22,399
tradesmen that are subs underneath of me
5890
03:43:22,399 --> 03:43:24,640
that I can't control. You can if you
5891
03:43:24,640 --> 03:43:26,000
choose to pay them more to do things
5892
03:43:26,000 --> 03:43:28,160
faster. So all of these things is like,
5893
03:43:28,160 --> 03:43:30,239
is it impossible or just more expensive?
5894
03:43:30,239 --> 03:43:31,760
And if it's more expensive, can I price
5895
03:43:31,760 --> 03:43:33,600
that in? If I price that in, can I make
5896
03:43:33,600 --> 03:43:35,840
more than it is expensive on my price?
5897
03:43:35,840 --> 03:43:38,000
Probably. And especially when you're
5898
03:43:38,000 --> 03:43:40,000
somebody who's supply constrained, like
5899
03:43:40,000 --> 03:43:41,920
the first your first gut reaction to
5900
03:43:41,920 --> 03:43:43,359
like, I can't handle the amount of
5901
03:43:43,359 --> 03:43:46,319
demand that I have is raise your price.
5902
03:43:46,319 --> 03:43:47,600
But everyone's afraid of raising their
5903
03:43:47,600 --> 03:43:48,479
price because they're like, we closed
5904
03:43:48,479 --> 03:43:50,160
80% but we can't handle anymore. It's
5905
03:43:50,160 --> 03:43:53,520
like then close 40 and triple the price.
5906
03:43:53,520 --> 03:43:54,880
And you're like, there's no way we could
5907
03:43:54,880 --> 03:43:55,920
do that. It's like, well, you should get
5908
03:43:55,920 --> 03:43:57,920
that looks at, right? Of course you can
5909
03:43:57,920 --> 03:43:59,920
do that. Done it a zillion times. That's
5910
03:43:59,920 --> 03:44:00,960
why we wrote the whole price rates
5911
03:44:00,960 --> 03:44:02,000
letter. That's why we have the pricing
5912
03:44:02,000 --> 03:44:06,080
playbook. You can totally do it. Now,
5913
03:44:06,080 --> 03:44:09,120
I like to pair the solutions in the
5914
03:44:09,120 --> 03:44:11,199
following sequence.
5915
03:44:11,199 --> 03:44:14,239
So, this is how we do it. I go sales
5916
03:44:14,239 --> 03:44:16,160
motion. So, this is where we install the
5917
03:44:16,160 --> 03:44:17,920
VSSL that I referenced earlier. So, we
5918
03:44:17,920 --> 03:44:21,600
put a sales motion in place, right?
5919
03:44:21,600 --> 03:44:23,680
Which is going to be a VSSL. We're also
5920
03:44:23,680 --> 03:44:25,600
going to have lead nurture so that we
5921
03:44:25,600 --> 03:44:29,640
get to a higher percentage of our leads.
5922
03:44:30,000 --> 03:44:32,720
We then follow the closer
5923
03:44:32,720 --> 03:44:35,359
the closing book
5924
03:44:35,359 --> 03:44:36,800
which then gets us even more. So think
5925
03:44:36,800 --> 03:44:38,720
about all of this is squeezing even more
5926
03:44:38,720 --> 03:44:40,560
demand in and you're like I can't even
5927
03:44:40,560 --> 03:44:42,560
handle demand. So now we got to drop put
5928
03:44:42,560 --> 03:44:44,880
some put some brakes on it. So this is
5929
03:44:44,880 --> 03:44:47,359
why we jack the price
5930
03:44:47,359 --> 03:44:49,920
and then with this jacked price and this
5931
03:44:49,920 --> 03:44:52,239
way more demand we might be able to
5932
03:44:52,239 --> 03:44:54,640
double price and keep sales volume the
5933
03:44:54,640 --> 03:44:56,080
same. We might even double price and
5934
03:44:56,080 --> 03:44:58,560
sales volume goes up. Oh no. Right. But
5935
03:44:58,560 --> 03:45:01,359
then what happens is cash flow goes
5936
03:45:01,359 --> 03:45:03,439
through the roof. And so let me show you
5937
03:45:03,439 --> 03:45:05,120
how because this is super common yet
5938
03:45:05,120 --> 03:45:08,960
again for home services businesses.
5939
03:45:08,960 --> 03:45:10,800
And I'm covering these each of these is
5940
03:45:10,800 --> 03:45:12,479
like one out of five of you is each of
5941
03:45:12,479 --> 03:45:13,840
these big categories that I'm doing
5942
03:45:13,840 --> 03:45:17,199
right now. Um so most home services
5943
03:45:17,199 --> 03:45:18,960
businesses and I and I hear this a lot
5944
03:45:18,960 --> 03:45:20,960
and this I want to like erase this from
5945
03:45:20,960 --> 03:45:23,279
your mind. If you've ever like I get
5946
03:45:23,279 --> 03:45:27,199
this this this retort which is hey I you
5947
03:45:27,199 --> 03:45:29,920
know we run you know 15% margins but
5948
03:45:29,920 --> 03:45:31,600
that's that's industry average. That's
5949
03:45:31,600 --> 03:45:32,880
that's kind of what it is in our
5950
03:45:32,880 --> 03:45:37,040
industry. Why on earth would you compare
5951
03:45:37,040 --> 03:45:40,080
yourself to anybody else? They're all
5952
03:45:40,080 --> 03:45:42,560
broke. Don't look at what they do. They
5953
03:45:42,560 --> 03:45:43,520
have no idea what they're doing. I
5954
03:45:43,520 --> 03:45:44,319
promise you they have no idea what
5955
03:45:44,319 --> 03:45:47,279
they're doing. Zero. No idea.
5956
03:45:47,279 --> 03:45:48,960
So you have this quote industry average,
5957
03:45:48,960 --> 03:45:50,880
but like the American average is
5958
03:45:50,880 --> 03:45:53,680
overweight, divorced twice, like can't
5959
03:45:53,680 --> 03:45:55,120
hold down a job, can't focus, scrolling
5960
03:45:55,120 --> 03:45:56,800
TikTok eight hours a day. Why would we
5961
03:45:56,800 --> 03:45:59,359
compare ourselves to that average?
5962
03:45:59,359 --> 03:46:01,439
Completely irrelevant. Just do it down
5963
03:46:01,439 --> 03:46:03,120
to physics. If we have more demand than
5964
03:46:03,120 --> 03:46:05,359
we have supply, uh then we should raise
5965
03:46:05,359 --> 03:46:08,560
our prices. Now, back to this. So if you
5966
03:46:08,560 --> 03:46:10,319
have
5967
03:46:10,319 --> 03:46:12,399
a normal home services business, you
5968
03:46:12,399 --> 03:46:15,680
might be running 15% margins. Okay?
5969
03:46:15,680 --> 03:46:18,000
Well, if we let's say we incre let's
5970
03:46:18,000 --> 03:46:20,080
just let's go crazy. Let's go crazy. And
5971
03:46:20,080 --> 03:46:21,680
by crazy, I mean not crazy at all. And
5972
03:46:21,680 --> 03:46:25,040
let's just say we do a 50% price raise.
5973
03:46:25,040 --> 03:46:27,439
If we pair that with an improvement in
5974
03:46:27,439 --> 03:46:29,120
the sales motion out of VSSL, we
5975
03:46:29,120 --> 03:46:30,560
actually work our leads and we follow a
5976
03:46:30,560 --> 03:46:32,720
closing process and we got our price
5977
03:46:32,720 --> 03:46:38,080
raise. What did we do to our profit?
5978
03:46:38,080 --> 03:46:41,920
We 4x the profit of the business.
5979
03:46:41,920 --> 03:46:44,960
Dudes, we do this all the time, day in
5980
03:46:44,960 --> 03:46:47,040
and day out, every week to home service
5981
03:46:47,040 --> 03:46:49,040
businesses. There is so much opportunity
5982
03:46:49,040 --> 03:46:52,960
here if you just know where to look.
5983
03:46:52,960 --> 03:46:55,120
So, this is a stack of solutions and I'm
5984
03:46:55,120 --> 03:46:56,720
giving you guys more stacks of solutions
5985
03:46:56,720 --> 03:46:58,880
here um so that you can actually
5986
03:46:58,880 --> 03:47:01,040
implement these and and win because now
5987
03:47:01,040 --> 03:47:02,479
of course like let's play it out. You
5988
03:47:02,479 --> 03:47:03,680
increase the cash flow, what happens?
5989
03:47:03,680 --> 03:47:06,800
But I'm supply constrained. Great.
5990
03:47:06,800 --> 03:47:10,000
Pay more.
5991
03:47:10,000 --> 03:47:14,439
pay more referral bonuses,
5992
03:47:16,960 --> 03:47:18,800
more
5993
03:47:18,800 --> 03:47:22,680
recruiting and ads.
5994
03:47:23,040 --> 03:47:24,479
So, you have to follow it through the
5995
03:47:24,479 --> 03:47:25,520
natural sequence. And if you're like,
5996
03:47:25,520 --> 03:47:26,800
well, that's going to take me like the
5997
03:47:26,800 --> 03:47:30,239
thing is is like this, this, this, this,
5998
03:47:30,239 --> 03:47:33,920
this, all those lots of words, two
5999
03:47:33,920 --> 03:47:35,600
weeks, it doesn't take a ton of time to
6000
03:47:35,600 --> 03:47:37,359
do that. This one will take more time.
6001
03:47:37,359 --> 03:47:41,279
This is decisions onetime asset process
6002
03:47:41,279 --> 03:47:43,680
training process training process
6003
03:47:43,680 --> 03:47:46,239
training couple weeks price change
6004
03:47:46,239 --> 03:47:47,760
decision
6005
03:47:47,760 --> 03:47:50,720
cash flow output
6006
03:47:50,720 --> 03:47:52,239
okay
6007
03:47:52,239 --> 03:47:54,080
and I have that the last the last bullet
6008
03:47:54,080 --> 03:47:55,439
there because I think it's worth saying
6009
03:47:55,439 --> 03:47:57,199
I see a lot of home services businesses
6010
03:47:57,199 --> 03:48:00,080
do a do an absolutely atrocious job at
6011
03:48:00,080 --> 03:48:01,760
uh sales and specifically uh lead
6012
03:48:01,760 --> 03:48:04,880
nurture. um one of the highest
6013
03:48:04,880 --> 03:48:06,080
converting and there's been a bunch of
6014
03:48:06,080 --> 03:48:07,439
shorts about this but like there was a
6015
03:48:07,439 --> 03:48:09,279
guy who came in he was closing 55% of
6016
03:48:09,279 --> 03:48:11,439
his leads and he was able to close 55%
6017
03:48:11,439 --> 03:48:12,479
of his leads that he was only getting
6018
03:48:12,479 --> 03:48:13,840
two to three leads a day and I think he
6019
03:48:13,840 --> 03:48:17,199
was in I think it was in roofing um
6020
03:48:17,199 --> 03:48:19,840
because he hired his aunt to only have
6021
03:48:19,840 --> 03:48:21,359
one job which was that she called the
6022
03:48:21,359 --> 03:48:22,640
leads the moment they came in. That was
6023
03:48:22,640 --> 03:48:24,239
it. That was her only job. She she had
6024
03:48:24,239 --> 03:48:25,439
literally no other responsibilities. He
6025
03:48:25,439 --> 03:48:27,040
only got two to three leads a day. But
6026
03:48:27,040 --> 03:48:28,160
he knew that if he could call them
6027
03:48:28,160 --> 03:48:30,239
within 15 seconds, the likelihood that
6028
03:48:30,239 --> 03:48:32,000
he would close them doubles, triples,
6029
03:48:32,000 --> 03:48:33,920
quadruples, right? And so some of you
6030
03:48:33,920 --> 03:48:35,760
are like, "Man, I can't afford to hire a
6031
03:48:35,760 --> 03:48:36,960
lead ner." It's like, "Dude, you can't
6032
03:48:36,960 --> 03:48:38,399
afford not to." It's like you're
6033
03:48:38,399 --> 03:48:39,840
converting 5% of your leads. It's like
6034
03:48:39,840 --> 03:48:41,840
you convert 20% of your leads, you 4x
6035
03:48:41,840 --> 03:48:44,880
revenue. Could you with 4x revenue pay
6036
03:48:44,880 --> 03:48:49,640
for a new a lead nurture rep? Probably.
6037
03:48:50,000 --> 03:48:52,399
All right. So, that was home services.
6038
03:48:52,399 --> 03:48:54,960
You guys digging this? Okay.
6039
03:48:54,960 --> 03:48:57,760
So uh this is B2B services and SAS. So
6040
03:48:57,760 --> 03:48:59,600
this you know I I book both these
6041
03:48:59,600 --> 03:49:01,920
together despite the fact that um you
6042
03:49:01,920 --> 03:49:04,239
might be like how does a B2B service and
6043
03:49:04,239 --> 03:49:06,560
software as a service similar? Well they
6044
03:49:06,560 --> 03:49:08,239
actually say that they actually
6045
03:49:08,239 --> 03:49:09,760
fundamentally sell the same thing. They
6046
03:49:09,760 --> 03:49:11,920
deliver differently. So B2B service and
6047
03:49:11,920 --> 03:49:14,560
a B2B SAS is software as a service and
6048
03:49:14,560 --> 03:49:16,560
B2B service is just service as a
6049
03:49:16,560 --> 03:49:19,279
service. Right? So they're both SAS
6050
03:49:19,279 --> 03:49:20,479
service as a service software as a
6051
03:49:20,479 --> 03:49:22,319
service but they sell the same thing.
6052
03:49:22,319 --> 03:49:23,520
They just have a different delivery
6053
03:49:23,520 --> 03:49:25,600
mechanism. And the idea behind B2B SAS
6054
03:49:25,600 --> 03:49:27,040
is that it should be more consistent
6055
03:49:27,040 --> 03:49:28,399
because it's software. It's technology
6056
03:49:28,399 --> 03:49:30,479
that's doing it. And it should in theory
6057
03:49:30,479 --> 03:49:32,000
have higher gross margins. Doesn't
6058
03:49:32,000 --> 03:49:34,479
always, but it should in theory. So
6059
03:49:34,479 --> 03:49:36,160
you'll notice that the sales motions for
6060
03:49:36,160 --> 03:49:38,239
a B2B service and a B2B SAS are almost
6061
03:49:38,239 --> 03:49:40,239
identical. So the sales motion that we
6062
03:49:40,239 --> 03:49:42,479
had for Allen, for example, uh the
6063
03:49:42,479 --> 03:49:44,479
agency software was identical to Gym
6064
03:49:44,479 --> 03:49:46,160
Launch. Like literally just like line
6065
03:49:46,160 --> 03:49:49,680
for line was the exact same thing. Um,
6066
03:49:49,680 --> 03:49:52,319
and so the the the common issue with
6067
03:49:52,319 --> 03:49:53,760
these types of businesses, especially if
6068
03:49:53,760 --> 03:49:55,359
you are more ads driven on this. So I
6069
03:49:55,359 --> 03:49:57,840
I'll I'll give you two examples. Um, if
6070
03:49:57,840 --> 03:50:00,399
you are more ads driven, then you're
6071
03:50:00,399 --> 03:50:01,760
noticing that your cost to acquire
6072
03:50:01,760 --> 03:50:02,960
customers is continuing to get more and
6073
03:50:02,960 --> 03:50:04,800
more expensive. Uh, your margins are
6074
03:50:04,800 --> 03:50:06,560
compressing and compressing. Churn is
6075
03:50:06,560 --> 03:50:09,600
likely going up uh because your delivery
6076
03:50:09,600 --> 03:50:11,760
on the back end has continued to uh
6077
03:50:11,760 --> 03:50:13,359
dilute because you're not as good at
6078
03:50:13,359 --> 03:50:14,800
training and recruiting as you are at
6079
03:50:14,800 --> 03:50:16,960
marketing and sales. Um that's like
6080
03:50:16,960 --> 03:50:20,399
archetype one. Archetype two is the
6081
03:50:20,399 --> 03:50:23,520
entire uh B2B uh referral driven
6082
03:50:23,520 --> 03:50:25,199
business that has almost no marketing in
6083
03:50:25,199 --> 03:50:26,560
general. And so they have different kind
6084
03:50:26,560 --> 03:50:29,199
of playbook stacks uh to solve those.
6085
03:50:29,199 --> 03:50:31,439
All right. So let's say the ads driven
6086
03:50:31,439 --> 03:50:34,439
B2B.
6087
03:50:36,160 --> 03:50:39,439
So this may seem counterintuitive but
6088
03:50:39,439 --> 03:50:41,279
number one is going to be content. And I
6089
03:50:41,279 --> 03:50:42,399
know that sounds crazy because you're
6090
03:50:42,399 --> 03:50:43,439
like wait how's that going to fix? The
6091
03:50:43,439 --> 03:50:45,520
thing is is you have a brand issue. is
6092
03:50:45,520 --> 03:50:47,359
that no one trusts you and they're right
6093
03:50:47,359 --> 03:50:49,680
to not trust you because you're diluting
6094
03:50:49,680 --> 03:50:51,120
like your your reviews, your word of
6095
03:50:51,120 --> 03:50:52,720
mouth continue to trickle down to almost
6096
03:50:52,720 --> 03:50:54,640
nothing and so you have to reestablish
6097
03:50:54,640 --> 03:50:56,479
the brand and start providing more value
6098
03:50:56,479 --> 03:50:59,040
upfront. This will in the short term
6099
03:50:59,040 --> 03:51:00,720
increase your conversion percentage. In
6100
03:51:00,720 --> 03:51:01,920
the long term, it'll start actually
6101
03:51:01,920 --> 03:51:04,000
generating deals and lead flow for you.
6102
03:51:04,000 --> 03:51:05,199
So that's the first thing that you'll
6103
03:51:05,199 --> 03:51:07,920
have to do. The next thing is that again
6104
03:51:07,920 --> 03:51:09,840
most most businesses here could benefit
6105
03:51:09,840 --> 03:51:12,960
from multiple VSSLs.
6106
03:51:12,960 --> 03:51:15,040
So if you have two calls or three calls
6107
03:51:15,040 --> 03:51:16,640
then you should probably have two VSSLs
6108
03:51:16,640 --> 03:51:19,920
or three VSSLs not just one.
6109
03:51:19,920 --> 03:51:21,680
The next here and this is super common
6110
03:51:21,680 --> 03:51:24,640
again is going to be avatar is they are
6111
03:51:24,640 --> 03:51:26,720
unclear on the person that they provide
6112
03:51:26,720 --> 03:51:28,319
the absolute most value to. So you have
6113
03:51:28,319 --> 03:51:30,160
to get clear on which customer segment
6114
03:51:30,160 --> 03:51:32,880
you're deciding to to serve. And because
6115
03:51:32,880 --> 03:51:34,960
of that because you're doing too many
6116
03:51:34,960 --> 03:51:36,080
things to too many different types of
6117
03:51:36,080 --> 03:51:38,319
people you can't price appropriately.
6118
03:51:38,319 --> 03:51:40,239
Your CAC is too high. Your margins are
6119
03:51:40,239 --> 03:51:42,080
compressing. you dilute down your
6120
03:51:42,080 --> 03:51:44,319
ability to service those customers um
6121
03:51:44,319 --> 03:51:47,040
because
6122
03:51:47,040 --> 03:51:48,720
you have too many people you're serving
6123
03:51:48,720 --> 03:51:50,399
and so you have to do so much custom
6124
03:51:50,399 --> 03:51:52,479
stuff it's impossible to be good and so
6125
03:51:52,479 --> 03:51:53,840
you have to narrow it so that you can
6126
03:51:53,840 --> 03:51:55,040
templatize it and get consistent
6127
03:51:55,040 --> 03:51:56,640
outcomes. When you have a consistent
6128
03:51:56,640 --> 03:51:58,080
avatar, you have consistent messaging,
6129
03:51:58,080 --> 03:52:00,000
consistent outcomes, then the whole
6130
03:52:00,000 --> 03:52:01,520
thing becomes more productized and it
6131
03:52:01,520 --> 03:52:03,680
ultimately drives more value, right? And
6132
03:52:03,680 --> 03:52:05,279
you can also now price appropriately to
6133
03:52:05,279 --> 03:52:07,199
that significantly higher value avatar.
6134
03:52:07,199 --> 03:52:09,359
So, it's not uncommon to see doubles,
6135
03:52:09,359 --> 03:52:11,199
triples, quadruples in pricing when we
6136
03:52:11,199 --> 03:52:13,279
get really clear on this 20% slice or
6137
03:52:13,279 --> 03:52:14,880
30% slice of your existing customer
6138
03:52:14,880 --> 03:52:17,120
base. That is the ideal customer base
6139
03:52:17,120 --> 03:52:19,199
for you.
6140
03:52:19,199 --> 03:52:22,479
So, content sales motion, making sure
6141
03:52:22,479 --> 03:52:23,840
that we're picking the right avatar,
6142
03:52:23,840 --> 03:52:25,680
which then
6143
03:52:25,680 --> 03:52:28,399
goes into pricing.
6144
03:52:28,399 --> 03:52:30,399
So, I'm trying to do like kind of white
6145
03:52:30,399 --> 03:52:33,760
whitewashed uh consulting with like
6146
03:52:33,760 --> 03:52:36,640
whole like tranches of you at a time. Um
6147
03:52:36,640 --> 03:52:39,279
but this is this is like the stack of
6148
03:52:39,279 --> 03:52:40,880
what I would be going through. So the
6149
03:52:40,880 --> 03:52:43,520
content here is going to be um marketing
6150
03:52:43,520 --> 03:52:47,680
machine plus branding
6151
03:52:47,680 --> 03:52:50,319
plus hooks.
6152
03:52:50,319 --> 03:52:53,520
This is proof.
6153
03:52:53,520 --> 03:52:57,359
This is uh your first avatar in the lost
6154
03:52:57,359 --> 03:52:59,199
chapters book. And then this is the
6155
03:52:59,199 --> 03:53:02,239
pricing um pricing playbook which is
6156
03:53:02,239 --> 03:53:03,199
right there. You already know what it
6157
03:53:03,199 --> 03:53:05,279
is. And so that's like the stack of
6158
03:53:05,279 --> 03:53:07,600
playbooks to go through. Okay. Now, if
6159
03:53:07,600 --> 03:53:09,040
you're the other side, so you're you're
6160
03:53:09,040 --> 03:53:10,720
a legal a legal firm or you're an
6161
03:53:10,720 --> 03:53:13,040
accounting firm and uh you you've been
6162
03:53:13,040 --> 03:53:14,399
doing this for a while and you have
6163
03:53:14,399 --> 03:53:17,199
people who are coming in. Um typically,
6164
03:53:17,199 --> 03:53:19,920
more so than anything, you guys suck at
6165
03:53:19,920 --> 03:53:22,319
sales. So, it's going to be sales
6166
03:53:22,319 --> 03:53:24,720
motion.
6167
03:53:24,720 --> 03:53:26,640
You don't need to do content. You need
6168
03:53:26,640 --> 03:53:29,279
to do sales motion. Typically, uh
6169
03:53:29,279 --> 03:53:31,680
pricing change
6170
03:53:31,680 --> 03:53:35,120
is almost
6171
03:53:35,120 --> 03:53:36,720
certainly the two things that you'll end
6172
03:53:36,720 --> 03:53:39,199
up having to do and kind of like I said
6173
03:53:39,199 --> 03:53:41,760
earlier with
6174
03:53:41,760 --> 03:53:44,880
the multi-step VSSL with these types of
6175
03:53:44,880 --> 03:53:47,520
changes um we approach it with something
6176
03:53:47,520 --> 03:53:49,760
called a calculator close which is if
6177
03:53:49,760 --> 03:53:52,399
you're the type of business that can um
6178
03:53:52,399 --> 03:53:54,880
demonstrate a savings. So this is super
6179
03:53:54,880 --> 03:53:56,319
common in accounting, super common in
6180
03:53:56,319 --> 03:53:59,760
tax, um it can be for different types of
6181
03:53:59,760 --> 03:54:03,120
restoration work, um different type of
6182
03:54:03,120 --> 03:54:06,479
commercial services, uh different IT, uh
6183
03:54:06,479 --> 03:54:08,239
security, there's a bunch of different
6184
03:54:08,239 --> 03:54:10,160
ones where like you save businesses or
6185
03:54:10,160 --> 03:54:11,760
make them money or combination of those
6186
03:54:11,760 --> 03:54:13,680
things. And so what we want to do is we
6187
03:54:13,680 --> 03:54:15,520
have to create a sales motion that
6188
03:54:15,520 --> 03:54:18,000
anchors our pricing with a calculator
6189
03:54:18,000 --> 03:54:20,479
around the savings around the earnings
6190
03:54:20,479 --> 03:54:22,160
as long as we can demonstrate it and
6191
03:54:22,160 --> 03:54:23,600
prove it after the fact which if you're
6192
03:54:23,600 --> 03:54:25,359
in that type of business you can. You
6193
03:54:25,359 --> 03:54:26,800
want to get completely get rid of this
6194
03:54:26,800 --> 03:54:28,399
whole cost. Like everyone here who does
6195
03:54:28,399 --> 03:54:29,840
cost plus pricing and if you're like
6196
03:54:29,840 --> 03:54:31,520
what's cost plus? You look at how much
6197
03:54:31,520 --> 03:54:33,279
it cost you and then you add something
6198
03:54:33,279 --> 03:54:34,880
that is cost plus pricing. It is a
6199
03:54:34,880 --> 03:54:36,000
terrible way to price. It's the worst
6200
03:54:36,000 --> 03:54:37,120
way to price. Please stop doing that
6201
03:54:37,120 --> 03:54:39,359
now. All right. Value based pricing is
6202
03:54:39,359 --> 03:54:40,560
the only type of pricing that matters
6203
03:54:40,560 --> 03:54:42,239
which is what is someone willing to pay.
6204
03:54:42,239 --> 03:54:44,720
Now what it costs you to do and deliver
6205
03:54:44,720 --> 03:54:47,760
is entirely not their problem. It's just
6206
03:54:47,760 --> 03:54:49,439
about what they're willing to pay and
6207
03:54:49,439 --> 03:54:50,720
how many people are willing to pay it.
6208
03:54:50,720 --> 03:54:52,479
And then you just do your math, right?
6209
03:54:52,479 --> 03:54:54,960
These are not up for negotiation. Now
6210
03:54:54,960 --> 03:54:56,160
you might think this and say, "Well,
6211
03:54:56,160 --> 03:54:57,279
wait, that would mean that we'd have
6212
03:54:57,279 --> 03:54:58,800
different prices for everyone." That's
6213
03:54:58,800 --> 03:55:00,640
okay as long as you have a method behind
6214
03:55:00,640 --> 03:55:03,520
doing it and as long as the margin still
6215
03:55:03,520 --> 03:55:05,120
works out great for what you're doing,
6216
03:55:05,120 --> 03:55:06,239
which if you're pricing it the right
6217
03:55:06,239 --> 03:55:09,279
way, you should. As long as the delivery
6218
03:55:09,279 --> 03:55:11,600
is still more or less the same thing in
6219
03:55:11,600 --> 03:55:14,960
terms of um the doingness of each of
6220
03:55:14,960 --> 03:55:16,880
your teammates, totally fine. I'll give
6221
03:55:16,880 --> 03:55:19,439
you a totally different example. So, one
6222
03:55:19,439 --> 03:55:20,960
of the best ways to sell, it's a little
6223
03:55:20,960 --> 03:55:23,439
bit more advanced for like a weight loss
6224
03:55:23,439 --> 03:55:26,000
uh business like a gym. Like the easiest
6225
03:55:26,000 --> 03:55:27,680
way to sell is to sell a program six
6226
03:55:27,680 --> 03:55:29,279
weeks defined end like here's a
6227
03:55:29,279 --> 03:55:30,640
challenge or whatever detox
6228
03:55:30,640 --> 03:55:32,960
transformation. If you get a little bit
6229
03:55:32,960 --> 03:55:34,560
more advanced, then you want to sell to
6230
03:55:34,560 --> 03:55:35,920
goal. And that's exactly what this is.
6231
03:55:35,920 --> 03:55:37,279
is a calculator close is selling to
6232
03:55:37,279 --> 03:55:39,120
goal. It's a diagnostic sale. And so
6233
03:55:39,120 --> 03:55:41,199
what happens the person comes in and you
6234
03:55:41,199 --> 03:55:44,960
say, "Okay, you want to lose 50 pounds,
6235
03:55:44,960 --> 03:55:46,720
50 pounds. We find that it takes
6236
03:55:46,720 --> 03:55:48,720
reasonably we want to do 2 pounds a
6237
03:55:48,720 --> 03:55:50,160
week. It's going to take 25 weeks for us
6238
03:55:50,160 --> 03:55:51,600
to get there. Then we're going to have a
6239
03:55:51,600 --> 03:55:52,960
maintenance period of, you know, half
6240
03:55:52,960 --> 03:55:53,920
that time, which is going to be 12
6241
03:55:53,920 --> 03:55:55,760
weeks. So 37 in total. And then we're
6242
03:55:55,760 --> 03:55:57,199
going to do a recalibration phase after
6243
03:55:57,199 --> 03:55:58,640
that, which is another 12 weeks. All
6244
03:55:58,640 --> 03:56:01,120
right. So all in all, we're looking at
6245
03:56:01,120 --> 03:56:03,439
whatever that is, 49 weeks. Okay. Now,
6246
03:56:03,439 --> 03:56:05,600
we charge 200 bucks a week. How do you
6247
03:56:05,600 --> 03:56:07,279
want to pay? Right? And all of a sudden
6248
03:56:07,279 --> 03:56:11,120
that becomes a $9,800 sale. Right? Now,
6249
03:56:11,120 --> 03:56:12,640
somebody else comes in later and they
6250
03:56:12,640 --> 03:56:14,399
only need to lose 30 pounds. Then that
6251
03:56:14,399 --> 03:56:15,600
means that you can just decrease the
6252
03:56:15,600 --> 03:56:17,760
amount of time. That's fine because your
6253
03:56:17,760 --> 03:56:19,279
revenue per person per month is the
6254
03:56:19,279 --> 03:56:20,960
same. You just have different durations.
6255
03:56:20,960 --> 03:56:22,560
And the doingness of each of your team
6256
03:56:22,560 --> 03:56:24,800
is still going to be stop eating crap,
6257
03:56:24,800 --> 03:56:27,520
move more, jump to the gym. Right? You
6258
03:56:27,520 --> 03:56:28,880
get what I'm saying here? So like even
6259
03:56:28,880 --> 03:56:31,359
though the the price can accordion
6260
03:56:31,359 --> 03:56:33,199
um the revenue per customer is going to
6261
03:56:33,199 --> 03:56:34,399
be the same and then you just renew them
6262
03:56:34,399 --> 03:56:37,279
at different times. Okay, hopefully that
6263
03:56:37,279 --> 03:56:39,520
was um if you were in either of those
6264
03:56:39,520 --> 03:56:41,680
scenarios either the uh kind of referral
6265
03:56:41,680 --> 03:56:43,840
driven or ads driven you have some
6266
03:56:43,840 --> 03:56:47,199
playbooks that you can follow. Okay, so
6267
03:56:47,199 --> 03:56:50,800
quick reminder here um one constraint at
6268
03:56:50,800 --> 03:56:52,479
a time. So even though I do these stacks
6269
03:56:52,479 --> 03:56:54,960
here, every business has one constraint,
6270
03:56:54,960 --> 03:56:57,279
but we focus on solving that constraint
6271
03:56:57,279 --> 03:56:59,680
by reverse engineering it. So if the
6272
03:56:59,680 --> 03:57:02,479
issue with this business for example is
6273
03:57:02,479 --> 03:57:04,960
that we need to be able to price better,
6274
03:57:04,960 --> 03:57:07,199
right? Well, then we have to start here
6275
03:57:07,199 --> 03:57:09,920
and then move on as we move through it
6276
03:57:09,920 --> 03:57:12,720
so that we can price better.
6277
03:57:12,720 --> 03:57:15,120
the the Instagram the Instagram the
6278
03:57:15,120 --> 03:57:16,239
influencer business that I was
6279
03:57:16,239 --> 03:57:19,560
referencing earlier.
6280
03:57:21,520 --> 03:57:23,199
This business not wants to convert a
6281
03:57:23,199 --> 03:57:24,399
higher percentage of the audience. Let's
6282
03:57:24,399 --> 03:57:25,439
say that that was the constraint of the
6283
03:57:25,439 --> 03:57:26,640
business. They just need to sell more.
6284
03:57:26,640 --> 03:57:28,720
So, can we do more? Well, we could do
6285
03:57:28,720 --> 03:57:30,560
more content. That would work. We could
6286
03:57:30,560 --> 03:57:31,520
do more ads. That would work. We could
6287
03:57:31,520 --> 03:57:32,800
do more sales. That would work. All of
6288
03:57:32,800 --> 03:57:34,479
those things work. And so, that's why in
6289
03:57:34,479 --> 03:57:36,560
the beginning, there's multiple multiple
6290
03:57:36,560 --> 03:57:38,000
paths of the mountain, but they're still
6291
03:57:38,000 --> 03:57:39,760
solving the main issue, which is we need
6292
03:57:39,760 --> 03:57:41,040
to get more leads so we can get more
6293
03:57:41,040 --> 03:57:43,359
sales, right? it was a conversion issue.
6294
03:57:43,359 --> 03:57:44,560
We have the leads. We're not converting
6295
03:57:44,560 --> 03:57:46,560
as many of them as we need to. And so
6296
03:57:46,560 --> 03:57:48,560
each of these processes will drive that
6297
03:57:48,560 --> 03:57:50,319
conversion mechanism. And so you can hit
6298
03:57:50,319 --> 03:57:52,160
it with multiple angles. That's fine.
6299
03:57:52,160 --> 03:57:54,960
But the constraint remains the same.
6300
03:57:54,960 --> 03:57:56,239
And once you hit it from all three
6301
03:57:56,239 --> 03:57:57,760
angles, eventually you get to a point
6302
03:57:57,760 --> 03:57:58,880
where like, oh my god, we don't have
6303
03:57:58,880 --> 03:58:00,399
more leads. And then you say, great, we
6304
03:58:00,399 --> 03:58:01,520
need to make more better content. That
6305
03:58:01,520 --> 03:58:02,960
becomes the next constraint, right? It
6306
03:58:02,960 --> 03:58:04,640
always the constraint will move. If
6307
03:58:04,640 --> 03:58:06,560
you're doing a good job, your constraint
6308
03:58:06,560 --> 03:58:07,920
will move regularly. If you're doing a
6309
03:58:07,920 --> 03:58:09,120
bad job, you'll have the same constraint
6310
03:58:09,120 --> 03:58:11,600
for years.
6311
03:58:11,600 --> 03:58:14,160
So many ways to solve it but you want to
6312
03:58:14,160 --> 03:58:17,439
identify them correctly.
6313
03:58:17,439 --> 03:58:19,600
Okay. So final reminders uh your
6314
03:58:19,600 --> 03:58:21,199
constraint is your priority. It means it
6315
03:58:21,199 --> 03:58:23,359
comes before everything else. You want
6316
03:58:23,359 --> 03:58:24,800
to leverage all of your resources
6317
03:58:24,800 --> 03:58:26,560
against the constraint and you want to
6318
03:58:26,560 --> 03:58:28,160
build compounding vehicles for long-term
6319
03:58:28,160 --> 03:58:31,960
success. So
6320
03:58:32,000 --> 03:58:33,840
and then we're going to do AI stuff. All
6321
03:58:33,840 --> 03:58:36,840
right.
6322
03:58:39,199 --> 03:58:41,359
So we have all these different things.
6323
03:58:41,359 --> 03:58:45,080
We find our constraint.
6324
03:58:46,000 --> 03:58:49,279
We then want to apply leverage
6325
03:58:49,279 --> 03:58:51,279
to our constraint. See if we can hit it
6326
03:58:51,279 --> 03:58:53,199
from a bunch of different angles. And if
6327
03:58:53,199 --> 03:58:55,279
we succeed at this, we create a
6328
03:58:55,279 --> 03:58:58,760
compounding vehicle.
6329
03:58:59,840 --> 03:59:01,600
Because fundamentally you want to have a
6330
03:59:01,600 --> 03:59:04,600
way
6331
03:59:07,680 --> 03:59:11,399
where you put effort
6332
03:59:11,920 --> 03:59:15,120
plus money plus brand all of your
6333
03:59:15,120 --> 03:59:17,279
inputs, right? You want to put all the
6334
03:59:17,279 --> 03:59:20,640
stuff you've got into your machine
6335
03:59:20,640 --> 03:59:23,199
into your black box. And you want this
6336
03:59:23,199 --> 03:59:26,080
thing
6337
03:59:26,080 --> 03:59:28,080
to self-compound.
6338
03:59:28,080 --> 03:59:30,319
And so this is the flywheel. So if
6339
03:59:30,319 --> 03:59:31,680
you're a brick-and-mortar business, it's
6340
03:59:31,680 --> 03:59:32,880
like you eventually just want to get to
6341
03:59:32,880 --> 03:59:34,640
the point where once you fill up a store
6342
03:59:34,640 --> 03:59:36,640
or a shop, you don't need to spend money
6343
03:59:36,640 --> 03:59:38,319
on marketing again because that shop
6344
03:59:38,319 --> 03:59:40,239
stays at full capacity and then the only
6345
03:59:40,239 --> 03:59:41,600
lever you have there is pricing. You
6346
03:59:41,600 --> 03:59:42,960
just keep jacking price and you stay
6347
03:59:42,960 --> 03:59:44,479
there and then you open up another
6348
03:59:44,479 --> 03:59:45,840
location and you repeat it and you do it
6349
03:59:45,840 --> 03:59:49,279
again. Um, if you have a a brokerage or
6350
03:59:49,279 --> 03:59:50,800
something that's like sales driven, it's
6351
03:59:50,800 --> 03:59:52,000
like the whole point is you're going to
6352
03:59:52,000 --> 03:59:53,840
have to get into a business that you can
6353
03:59:53,840 --> 03:59:55,680
continue to recruit, onboard train,
6354
03:59:55,680 --> 03:59:56,960
recruit, onboard, train, and then
6355
03:59:56,960 --> 03:59:58,479
consistently activate new sales reps.
6356
03:59:58,479 --> 04:00:00,479
And then as long as those sales reps are
6357
04:00:00,479 --> 04:00:02,800
uh produce, you just keep stacking year
6358
04:00:02,800 --> 04:00:05,520
over year over year, right? Um, you need
6359
04:00:05,520 --> 04:00:06,960
to have some sort of compounding in the
6360
04:00:06,960 --> 04:00:08,399
business. Otherwise, you will run into
6361
04:00:08,399 --> 04:00:09,840
an issue where you're just kind of
6362
04:00:09,840 --> 04:00:10,960
flooding people in and they're just
6363
04:00:10,960 --> 04:00:12,640
falling out the back door. And then you
6364
04:00:12,640 --> 04:00:13,920
think the solution is I just need to
6365
04:00:13,920 --> 04:00:15,520
sell more people. But then your margins
6366
04:00:15,520 --> 04:00:17,279
are going to continue to compress. So
6367
04:00:17,279 --> 04:00:18,640
you want to learn enough marketing and
6368
04:00:18,640 --> 04:00:20,560
sales to get going and then you focus
6369
04:00:20,560 --> 04:00:22,640
all of your effort on making sure people
6370
04:00:22,640 --> 04:00:24,319
never leave and you have to stay there.
6371
04:00:24,319 --> 04:00:25,600
And sometimes it takes years to solve
6372
04:00:25,600 --> 04:00:27,279
that one problem. But once you solve
6373
04:00:27,279 --> 04:00:28,960
that problem, your business will grow by
6374
04:00:28,960 --> 04:00:30,479
default. And then you could keep the
6375
04:00:30,479 --> 04:00:31,680
same level of sales kind of like company
6376
04:00:31,680 --> 04:00:33,439
A and company B and you'd want to be
6377
04:00:33,439 --> 04:00:35,120
company B because that's the one that
6378
04:00:35,120 --> 04:00:36,399
just keeps growing no matter what
6379
04:00:36,399 --> 04:00:37,600
because even if you sell the same amount
6380
04:00:37,600 --> 04:00:39,040
or even if you don't sell, you still
6381
04:00:39,040 --> 04:00:41,359
make money. All right. So, with that
6382
04:00:41,359 --> 04:00:43,120
being said,
6383
04:00:43,120 --> 04:00:46,000
I'm going to call up a handful of the uh
6384
04:00:46,000 --> 04:00:48,640
the scale advisory folks who uh entered
6385
04:00:48,640 --> 04:00:50,319
their their data. Hopefully, you guys
6386
04:00:50,319 --> 04:00:52,560
can see my screen. If you guys haven't
6387
04:00:52,560 --> 04:00:55,600
done this already, like
6388
04:00:55,600 --> 04:00:58,000
do do it. If you haven't onboarded
6389
04:00:58,000 --> 04:01:00,319
yourself, uh we spent so much and we
6390
04:01:00,319 --> 04:01:02,239
still are spending a lot of time on
6391
04:01:02,239 --> 04:01:07,880
making this exceptional. Um, and so,
6392
04:01:12,160 --> 04:01:14,080
okay,
6393
04:01:14,080 --> 04:01:17,279
now your first time going through here,
6394
04:01:17,279 --> 04:01:18,319
you're going to have to take go through
6395
04:01:18,319 --> 04:01:21,359
the onboarding flow. All right. Now, the
6396
04:01:21,359 --> 04:01:22,720
onboarding flow, you're going to answer
6397
04:01:22,720 --> 04:01:25,199
these questions about your business. And
6398
04:01:25,199 --> 04:01:28,319
so, let's say
6399
04:01:28,319 --> 04:01:29,600
I'm actually going to call one up. So,
6400
04:01:29,600 --> 04:01:30,800
we're just going to do it right now. All
6401
04:01:30,800 --> 04:01:35,120
right. So, shoot, what was the code?
6402
04:01:36,479 --> 04:01:39,279
Okay, here we go.
6403
04:01:39,279 --> 04:01:42,279
Okay,
6404
04:01:42,960 --> 04:01:46,800
Kevin Gong, you're first up. Let's rock.
6405
04:01:46,800 --> 04:01:49,359
Let's put some speakers on this guy.
6406
04:01:49,359 --> 04:01:51,359
>> Yo, Kevin, what's up,
6407
04:01:51,359 --> 04:01:53,520
>> Alex? Oh my god. Hi.
6408
04:01:53,520 --> 04:01:54,640
>> What's up, man?
6409
04:01:54,640 --> 04:01:56,960
>> So, we're going to do this AI thing
6410
04:01:56,960 --> 04:01:58,239
together. All right.
6411
04:01:58,239 --> 04:01:58,960
>> Okay.
6412
04:01:58,960 --> 04:02:01,439
>> So, primary delivery type of your core
6413
04:02:01,439 --> 04:02:03,439
offer. Is it do it yourself, done with
6414
04:02:03,439 --> 04:02:04,720
you, or done for you? Where's your most
6415
04:02:04,720 --> 04:02:07,040
of your revenue coming from?
6416
04:02:07,040 --> 04:02:08,800
>> Um, most of it up until now has been
6417
04:02:08,800 --> 04:02:10,560
done with you. I just released a done
6418
04:02:10,560 --> 04:02:11,520
for you offer.
6419
04:02:11,520 --> 04:02:12,800
>> Let's just do done with you for now
6420
04:02:12,800 --> 04:02:13,520
then. Okay.
6421
04:02:13,520 --> 04:02:13,920
>> Okay.
6422
04:02:13,920 --> 04:02:15,600
>> Primary delivery mechanism for your core
6423
04:02:15,600 --> 04:02:17,120
offer is it software, information
6424
04:02:17,120 --> 04:02:19,760
services, or physical products?
6425
04:02:19,760 --> 04:02:21,279
>> It's a tech enabled service.
6426
04:02:21,279 --> 04:02:24,880
>> I'll say services. Okay. Um, primary
6427
04:02:24,880 --> 04:02:26,640
mode of advertising, warm outreach, cold
6428
04:02:26,640 --> 04:02:30,399
outreach, free content, or paid ads?
6429
04:02:30,399 --> 04:02:33,199
Currently, it's just organic. I had a
6430
04:02:33,199 --> 04:02:34,479
growth partner that I split up with two
6431
04:02:34,479 --> 04:02:34,960
months ago.
6432
04:02:34,960 --> 04:02:36,720
>> So, it's going to be free content. Okay.
6433
04:02:36,720 --> 04:02:37,040
Yes.
6434
04:02:37,040 --> 04:02:39,920
>> So, primary lead getter. Um, is it you
6435
04:02:39,920 --> 04:02:42,479
doing this stuff? Uh, yes. Okay.
6436
04:02:42,479 --> 04:02:46,160
>> Great. Uh, monetization mechanism. So,
6437
04:02:46,160 --> 04:02:47,359
for getting the majority of your
6438
04:02:47,359 --> 04:02:49,439
revenue, is it a continuity kind of
6439
04:02:49,439 --> 04:02:50,720
recurring payments, low ticket, high
6440
04:02:50,720 --> 04:02:52,720
volume, or high volume? It's it's
6441
04:02:52,720 --> 04:02:55,199
>> high ticket. High ticket recurring. It's
6442
04:02:55,199 --> 04:02:57,439
5K a year was my V1 offer.
6443
04:02:57,439 --> 04:02:59,359
>> Okay. I'll go high volume. Uh, sorry.
6444
04:02:59,359 --> 04:03:00,640
Low volume, high ticket. That's where
6445
04:03:00,640 --> 04:03:02,239
we're going to go. Okay.
6446
04:03:02,239 --> 04:03:04,160
>> Primary selling mechanism for your core
6447
04:03:04,160 --> 04:03:07,120
offer. Is it uh inerson salesperson,
6448
04:03:07,120 --> 04:03:08,960
online salesperson, online selfch
6449
04:03:08,960 --> 04:03:10,080
checkckout, or inerson selfch
6450
04:03:10,080 --> 04:03:11,120
checkckout?
6451
04:03:11,120 --> 04:03:12,720
>> Online salesperson. I'm the one taking
6452
04:03:12,720 --> 04:03:14,239
calls.
6453
04:03:14,239 --> 04:03:16,800
>> Online salesperson. Here we go.
6454
04:03:16,800 --> 04:03:19,359
>> How many employees do you have?
6455
04:03:19,359 --> 04:03:20,479
>> Just me.
6456
04:03:20,479 --> 04:03:23,199
>> All right. Easy. Uh, current tech
6457
04:03:23,199 --> 04:03:25,760
status.
6458
04:03:25,760 --> 04:03:26,640
>> Current tech status.
6459
04:03:26,640 --> 04:03:28,000
>> Yeah. So, do you run your business with
6460
04:03:28,000 --> 04:03:29,279
pen and paper? Do you have a mess of
6461
04:03:29,279 --> 04:03:30,800
spreadsheets? Do you use a CRM and maybe
6462
04:03:30,800 --> 04:03:33,040
a few tools? You have a full tech stack
6463
04:03:33,040 --> 04:03:34,319
or almost everything that can be
6464
04:03:34,319 --> 04:03:36,080
automated is automated.
6465
04:03:36,080 --> 04:03:38,800
>> Uh, Google Sheets Empire. I use GHL for
6466
04:03:38,800 --> 04:03:40,319
my CRM.
6467
04:03:40,319 --> 04:03:41,680
>> Um, yeah. So, I'll be either between
6468
04:03:41,680 --> 04:03:43,359
little or middle. I'll just keep it at
6469
04:03:43,359 --> 04:03:45,279
little. Okay. So, primary business
6470
04:03:45,279 --> 04:03:47,279
constraint
6471
04:03:47,279 --> 04:03:49,600
>> based on everything today. Yeah.
6472
04:03:49,600 --> 04:03:52,080
>> It's it's uh up between leads and cash
6473
04:03:52,080 --> 04:03:53,760
flow.
6474
04:03:53,760 --> 04:03:56,479
>> Okay. So, well, let's walk through this
6475
04:03:56,479 --> 04:03:58,000
together then. This will be fun. Okay,
6476
04:03:58,000 --> 04:03:59,920
before I finish this, let's let's just
6477
04:03:59,920 --> 04:04:02,640
let's walk through our our mossy six.
6478
04:04:02,640 --> 04:04:06,319
Okay, so it's gonna because the conrink
6479
04:04:06,319 --> 04:04:09,520
there can only be one. So,
6480
04:04:09,520 --> 04:04:11,120
>> why can't you get more lead? Like, why
6481
04:04:11,120 --> 04:04:12,000
can't you do more of what you're
6482
04:04:12,000 --> 04:04:14,080
currently doing?
6483
04:04:14,080 --> 04:04:17,199
>> Um, my lead flow was disrupted two
6484
04:04:17,199 --> 04:04:19,520
months ago when I split from my uh
6485
04:04:19,520 --> 04:04:22,720
growth partner who had 370K on IG. My
6486
04:04:22,720 --> 04:04:24,720
personal brand is very small. So about
6487
04:04:24,720 --> 04:04:28,080
1.5k followers on X and 7.4K on school,
6488
04:04:28,080 --> 04:04:29,439
but there's a very low engagement rate
6489
04:04:29,439 --> 04:04:30,239
in school. Okay.
6490
04:04:30,239 --> 04:04:31,439
>> But that's where most of my clients are
6491
04:04:31,439 --> 04:04:32,479
coming from right now is just from
6492
04:04:32,479 --> 04:04:34,160
upselling and ascending existing
6493
04:04:34,160 --> 04:04:36,080
clients.
6494
04:04:36,080 --> 04:04:37,760
>> Okay.
6495
04:04:37,760 --> 04:04:40,800
So you had a lead source that you lost.
6496
04:04:40,800 --> 04:04:41,600
>> Yes.
6497
04:04:41,600 --> 04:04:44,080
>> Okay. So you can't do more because you
6498
04:04:44,080 --> 04:04:46,000
don't have it anymore.
6499
04:04:46,000 --> 04:04:46,880
>> Correct.
6500
04:04:46,880 --> 04:04:49,840
>> Okay. Got it. So uh I don't think
6501
04:04:49,840 --> 04:04:51,760
metrics is an issue for you, right?
6502
04:04:51,760 --> 04:04:53,760
We're good there. We don't have to worry
6503
04:04:53,760 --> 04:04:56,080
about that. So, it's not metrics or I'll
6504
04:04:56,080 --> 04:04:57,279
just make that a checkbox. So, you've
6505
04:04:57,279 --> 04:04:58,880
got metrics and then market. I think
6506
04:04:58,880 --> 04:05:00,160
your market is plenty big enough. So, we
6507
04:05:00,160 --> 04:05:01,199
don't have a problem with that.
6508
04:05:01,199 --> 04:05:03,040
>> Yeah, it's a 60 trillion dollar tam.
6509
04:05:03,040 --> 04:05:04,319
>> Yeah, not worried about that. So, you
6510
04:05:04,319 --> 04:05:06,000
got metrics, we got market, then we got
6511
04:05:06,000 --> 04:05:08,000
model. I don't think there's any issues
6512
04:05:08,000 --> 04:05:09,359
with the model based on the goals that
6513
04:05:09,359 --> 04:05:10,560
you have. I mean, what are the goals you
6514
04:05:10,560 --> 04:05:12,160
have right now?
6515
04:05:12,160 --> 04:05:15,840
>> Um, I did 330 last 11 months. I want to
6516
04:05:15,840 --> 04:05:17,600
hit a million ARR.
6517
04:05:17,600 --> 04:05:19,600
>> Yeah, but this model can easily hit that
6518
04:05:19,600 --> 04:05:21,120
though, so I'm going to say yes.
6519
04:05:21,120 --> 04:05:24,080
>> Okay, great. So then we got money. So
6520
04:05:24,080 --> 04:05:25,680
we've got four options here within
6521
04:05:25,680 --> 04:05:28,160
money, which is we've got leads. You
6522
04:05:28,160 --> 04:05:29,279
can't afford them because you don't have
6523
04:05:29,279 --> 04:05:30,960
the leads aren't cheap enough. You've
6524
04:05:30,960 --> 04:05:32,640
got sales because you can't convert
6525
04:05:32,640 --> 04:05:36,160
them. We've got uh LTV and then we've
6526
04:05:36,160 --> 04:05:39,760
got cash flow. Okay. So uh I already
6527
04:05:39,760 --> 04:05:40,960
know that your issue is not going to be
6528
04:05:40,960 --> 04:05:42,720
cash flow because you sell a digital
6529
04:05:42,720 --> 04:05:44,479
thing and you get accelerated up front.
6530
04:05:44,479 --> 04:05:46,319
I'm guessing unless are you are they
6531
04:05:46,319 --> 04:05:47,439
getting charged up front or are they
6532
04:05:47,439 --> 04:05:49,439
charged over time?
6533
04:05:49,439 --> 04:05:53,680
Um I actually charge up front annual.
6534
04:05:53,680 --> 04:05:55,840
>> Yeah. Okay. So then cash flow is not
6535
04:05:55,840 --> 04:05:57,520
going to be the issue. All right. So
6536
04:05:57,520 --> 04:05:58,000
then
6537
04:05:58,000 --> 04:05:59,680
>> lumpy though it is lumpy.
6538
04:05:59,680 --> 04:06:01,120
>> That's because of uh insufficient
6539
04:06:01,120 --> 04:06:02,000
volume.
6540
04:06:02,000 --> 04:06:04,319
>> Uh not because it's inherently anything
6541
04:06:04,319 --> 04:06:06,479
wrong with the business. Okay. So you
6542
04:06:06,479 --> 04:06:07,600
just aren't selling enough of them.
6543
04:06:07,600 --> 04:06:08,720
That's why it's lumpy. Not because
6544
04:06:08,720 --> 04:06:09,840
there's anything like if you were
6545
04:06:09,840 --> 04:06:10,800
selling one a day it wouldn't be an
6546
04:06:10,800 --> 04:06:15,040
issue. So okay. So now we've got um do
6547
04:06:15,040 --> 04:06:16,800
you not have enough leads that are
6548
04:06:16,800 --> 04:06:19,279
coming in?
6549
04:06:19,279 --> 04:06:22,160
No, I basically have um not been doing
6550
04:06:22,160 --> 04:06:23,680
any lead generation the past two months
6551
04:06:23,680 --> 04:06:24,800
because I've been building out my done
6552
04:06:24,800 --> 04:06:27,920
for you offer with this higher uh LTGP.
6553
04:06:27,920 --> 04:06:29,040
>> Okay.
6554
04:06:29,040 --> 04:06:31,040
>> Well, okay. So, leads though. So, how
6555
04:06:31,040 --> 04:06:33,840
are you going to get leads right now?
6556
04:06:33,840 --> 04:06:36,080
>> Um right now it's just from ascending
6557
04:06:36,080 --> 04:06:38,000
existing customers and I raised my
6558
04:06:38,000 --> 04:06:40,720
prices by 4x recently. sale.
6559
04:06:40,720 --> 04:06:42,239
>> So, but you have a you have a leads list
6560
04:06:42,239 --> 04:06:43,680
that you're just going to hit
6561
04:06:43,680 --> 04:06:46,160
fundamentally and then after that you're
6562
04:06:46,160 --> 04:06:47,760
then you're I mean this is a one-time
6563
04:06:47,760 --> 04:06:48,960
shot. You're going to collect some cash,
6564
04:06:48,960 --> 04:06:49,840
but then after that you're going to be
6565
04:06:49,840 --> 04:06:51,120
at zero again.
6566
04:06:51,120 --> 04:06:52,319
>> Yeah. Yeah.
6567
04:06:52,319 --> 04:06:56,479
>> So, that's fine. Go do that. Extract
6568
04:06:56,479 --> 04:06:58,000
value. But then I think you're still
6569
04:06:58,000 --> 04:07:00,080
just going to have to do really more.
6570
04:07:00,080 --> 04:07:01,840
But it's just you haven't really you're
6571
04:07:01,840 --> 04:07:03,279
in a weird position where you like had
6572
04:07:03,279 --> 04:07:04,800
something and then now it's a zero,
6573
04:07:04,800 --> 04:07:06,960
which is not common, but that's fine.
6574
04:07:06,960 --> 04:07:09,680
So, either you're gonna have to run ads,
6575
04:07:09,680 --> 04:07:12,319
we're gonna have to make content,
6576
04:07:12,319 --> 04:07:14,800
or you're gonna have to do outreach. Um,
6577
04:07:14,800 --> 04:07:17,199
I'm gonna bet right now that you're
6578
04:07:17,199 --> 04:07:19,279
going to want to start being far more
6579
04:07:19,279 --> 04:07:21,439
aggressive on content as your primary
6580
04:07:21,439 --> 04:07:22,479
strategy.
6581
04:07:22,479 --> 04:07:23,439
>> I agree.
6582
04:07:23,439 --> 04:07:26,720
>> Okay. So, I would, if I'm you, I would
6583
04:07:26,720 --> 04:07:29,120
go hardcore marketing machine, branding,
6584
04:07:29,120 --> 04:07:31,760
and hooks as the three playbooks that
6585
04:07:31,760 --> 04:07:34,560
I'd be like pouring myself into. And
6586
04:07:34,560 --> 04:07:36,319
obviously you want to do VSSL with
6587
04:07:36,319 --> 04:07:38,000
proof, follow the closing and lead
6588
04:07:38,000 --> 04:07:39,680
nurture stuff. That's just because it's
6589
04:07:39,680 --> 04:07:41,120
going to that'll just like you'll just
6590
04:07:41,120 --> 04:07:42,800
juice more out of it. But the front of
6591
04:07:42,800 --> 04:07:45,040
the funnel is for sure the issue. And so
6592
04:07:45,040 --> 04:07:47,840
I'd be asking myself, how can I make
6593
04:07:47,840 --> 04:07:49,199
what? So you're on X and what?
6594
04:07:49,199 --> 04:07:51,120
Instagram.
6595
04:07:51,120 --> 04:07:54,800
>> Uh X is my biggest following with 1.5K
6596
04:07:54,800 --> 04:07:56,960
followers. I do have a 7.4K school
6597
04:07:56,960 --> 04:07:58,560
community, but engagement rate is only
6598
04:07:58,560 --> 04:07:59,199
5%.
6599
04:07:59,199 --> 04:08:00,640
>> Inside of your group?
6600
04:08:00,640 --> 04:08:01,840
>> Inside of my school group. That's cuz
6601
04:08:01,840 --> 04:08:03,040
you mined all of the people who were
6602
04:08:03,040 --> 04:08:04,160
good into your paid group.
6603
04:08:04,160 --> 04:08:06,399
>> Yeah, that the group was passed on to me
6604
04:08:06,399 --> 04:08:07,439
after
6605
04:08:07,439 --> 04:08:09,040
>> it's just you just inherited a dead
6606
04:08:09,040 --> 04:08:12,080
group. That's okay. Um anyways, so I'm
6607
04:08:12,080 --> 04:08:13,439
glad you have some people there. I would
6608
04:08:13,439 --> 04:08:15,199
just go outreach from that perspective
6609
04:08:15,199 --> 04:08:17,920
for for those people. That's like day
6610
04:08:17,920 --> 04:08:19,840
one is outreach. Mind the rest of you
6611
04:08:19,840 --> 04:08:22,800
can so you can stack some cash. Then I
6612
04:08:22,800 --> 04:08:25,840
would say concurrently I'm asking myself
6613
04:08:25,840 --> 04:08:28,720
how can I do but how can I make two
6614
04:08:28,720 --> 04:08:30,160
three pieces of content a day that I can
6615
04:08:30,160 --> 04:08:33,439
repurpose across IG Tik Tok X like we
6616
04:08:33,439 --> 04:08:35,279
want to get this whole machine going and
6617
04:08:35,279 --> 04:08:39,439
I would do probably the CTA the um the
6618
04:08:39,439 --> 04:08:42,479
CTA plus manyhat as the the play so that
6619
04:08:42,479 --> 04:08:44,000
you can direct everyone towards
6620
04:08:44,000 --> 04:08:46,479
Instagram run a DM funnel to a phone
6621
04:08:46,479 --> 04:08:49,760
sale with a VSSL and then sell them in
6622
04:08:49,760 --> 04:08:52,560
>> so pivot from X to IG, right? Because my
6623
04:08:52,560 --> 04:08:54,319
IG is very small audience.
6624
04:08:54,319 --> 04:08:55,760
>> If you want to go to X, that's fine. I
6625
04:08:55,760 --> 04:08:57,040
just think more people will be it's just
6626
04:08:57,040 --> 04:08:58,080
more common for people to have
6627
04:08:58,080 --> 04:08:58,720
Instagram.
6628
04:08:58,720 --> 04:08:59,120
>> Sure.
6629
04:08:59,120 --> 04:09:00,720
>> If you want, you can have a DMR on both.
6630
04:09:00,720 --> 04:09:01,680
Like it's not the end of the world. I
6631
04:09:01,680 --> 04:09:03,040
just prefer to have one front door. So,
6632
04:09:03,040 --> 04:09:04,479
that's more of an operational issue. If
6633
04:09:04,479 --> 04:09:06,000
you can manage it, there's definitely a
6634
04:09:06,000 --> 04:09:08,720
bunch of um combined inbox softwares
6635
04:09:08,720 --> 04:09:11,439
that exist that can just pull all your
6636
04:09:11,439 --> 04:09:13,040
uh inboxes into one place between
6637
04:09:13,040 --> 04:09:15,520
different platforms.
6638
04:09:15,520 --> 04:09:17,680
>> Okay. And what uh would you just focus
6639
04:09:17,680 --> 04:09:20,399
on making content on IG only if I were
6640
04:09:20,399 --> 04:09:21,040
to make that switch?
6641
04:09:21,040 --> 04:09:22,239
>> No, I would keep No, I would keep making
6642
04:09:22,239 --> 04:09:24,000
it on X. Like I want you to make as much
6643
04:09:24,000 --> 04:09:25,439
content as humanly possible because the
6644
04:09:25,439 --> 04:09:26,720
nature of the sale you have requires a
6645
04:09:26,720 --> 04:09:27,680
lot of trust,
6646
04:09:27,680 --> 04:09:28,000
>> right?
6647
04:09:28,000 --> 04:09:29,120
>> Anything investing related is going to
6648
04:09:29,120 --> 04:09:30,800
require a lot of trust. And so I would I
6649
04:09:30,800 --> 04:09:32,560
would be trying to put as much content
6650
04:09:32,560 --> 04:09:34,960
out as I possibly could.
6651
04:09:34,960 --> 04:09:36,239
>> Yeah. Because I know you said one
6652
04:09:36,239 --> 04:09:38,239
channel, one avatar, and so one million.
6653
04:09:38,239 --> 04:09:39,760
>> Yeah, I know. I just you want thing is
6654
04:09:39,760 --> 04:09:41,840
is that you have like the infrastructure
6655
04:09:41,840 --> 04:09:43,439
of a business that had a much bigger
6656
04:09:43,439 --> 04:09:45,040
audience that then just disappeared. And
6657
04:09:45,040 --> 04:09:46,960
so I want you to play catchup right now.
6658
04:09:46,960 --> 04:09:48,479
>> Okay. Got it. Got it. Got it. So just
6659
04:09:48,479 --> 04:09:49,920
make as much content as humanly
6660
04:09:49,920 --> 04:09:51,439
possible. Point it all at one front door
6661
04:09:51,439 --> 04:09:54,080
which is IG any chat integration. And
6662
04:09:54,080 --> 04:09:55,279
then would you how would you integrate
6663
04:09:55,279 --> 04:09:56,640
school into that? Because I
6664
04:09:56,640 --> 04:09:57,920
>> well your delivery is going to be on
6665
04:09:57,920 --> 04:09:58,560
school.
6666
04:09:58,560 --> 04:10:00,080
>> My deliveries on school. Got it. Okay.
6667
04:10:00,080 --> 04:10:03,080
>> Easy.
6668
04:10:03,600 --> 04:10:06,319
>> Done.
6669
04:10:06,319 --> 04:10:08,960
Love this for us.
6670
04:10:08,960 --> 04:10:10,000
All right. Well, leads was the
6671
04:10:10,000 --> 04:10:11,520
constraint of the business.
6672
04:10:11,520 --> 04:10:14,160
>> Yes. leads is the Yeah, leads is clearly
6673
04:10:14,160 --> 04:10:14,880
the constraint.
6674
04:10:14,880 --> 04:10:16,960
>> Okay. Well, appreciate you, Kevin. I'm
6675
04:10:16,960 --> 04:10:18,160
gonna call the the next one up. All
6676
04:10:18,160 --> 04:10:18,399
right.
6677
04:10:18,399 --> 04:10:20,720
>> Can I Can I just say one thing, Alex?
6678
04:10:20,720 --> 04:10:21,600
>> Only if it's really nice.
6679
04:10:21,600 --> 04:10:24,239
>> Before it's really nice. Before Money
6680
04:10:24,239 --> 04:10:26,399
Models launch, I the only thing I bought
6681
04:10:26,399 --> 04:10:28,479
from you was a 50 cent Kindle, which is
6682
04:10:28,479 --> 04:10:31,359
$100 million offer Kindle. And at this
6683
04:10:31,359 --> 04:10:33,600
money model launch, I I bought every
6684
04:10:33,600 --> 04:10:36,960
single upsell, spent like 24.5K.
6685
04:10:36,960 --> 04:10:39,279
uh got the act uh handbooks for closer
6686
04:10:39,279 --> 04:10:42,319
ad handbooks ACQAI the school community
6687
04:10:42,319 --> 04:10:44,640
and this is I will tell you um a weekend
6688
04:10:44,640 --> 04:10:46,479
this is the best money I've ever spent
6689
04:10:46,479 --> 04:10:48,319
in my life
6690
04:10:48,319 --> 04:10:50,319
>> the school group is incredible the the
6691
04:10:50,319 --> 04:10:53,600
network um the advice from not just ACQ
6692
04:10:53,600 --> 04:10:55,040
team obviously but like there's seven
6693
04:10:55,040 --> 04:10:56,479
and nine figure business owners in there
6694
04:10:56,479 --> 04:10:59,120
so just so much game being dropped daily
6695
04:10:59,120 --> 04:11:02,800
um so yeah worth investment for the
6696
04:11:02,800 --> 04:11:04,399
first six weeks and it it's for six
6697
04:11:04,399 --> 04:11:07,040
months so I'm just blown I'm blown way.
6698
04:11:07,040 --> 04:11:09,120
>> Thanks, man. I appreciate it.
6699
04:11:09,120 --> 04:11:10,000
>> All right. Thank you, Alex.
6700
04:11:10,000 --> 04:11:11,120
>> You bet, man. All right. See you.
6701
04:11:11,120 --> 04:11:14,560
>> Have a good one. Bye.
6702
04:11:14,560 --> 04:11:18,399
>> That wasn't planned. Um,
6703
04:11:18,399 --> 04:11:21,040
um, okay. Hold on. 100.
6704
04:11:21,040 --> 04:11:22,960
All right. Next up, hopefully this is
6705
04:11:22,960 --> 04:11:24,560
cool. Like actually seeing the models,
6706
04:11:24,560 --> 04:11:26,160
get a walkthrough in real time because I
6707
04:11:26,160 --> 04:11:28,160
want the the output I want from everyone
6708
04:11:28,160 --> 04:11:30,640
here is that you're very clear on what
6709
04:11:30,640 --> 04:11:33,279
your specific constraint was. So, we had
6710
04:11:33,279 --> 04:11:34,239
to figure out what his constraint was
6711
04:11:34,239 --> 04:11:35,600
and I didn't even get to to use the AI
6712
04:11:35,600 --> 04:11:37,040
because we just had to walk through it.
6713
04:11:37,040 --> 04:11:41,680
But, um, okay, let's go. Ivan Ivan
6714
04:11:41,680 --> 04:11:46,520
Bunan. Ivan Boon.
6715
04:11:49,600 --> 04:11:53,239
Pareto talent.
6716
04:11:54,319 --> 04:11:55,920
>> Ivan,
6717
04:11:55,920 --> 04:11:56,560
>> hello.
6718
04:11:56,560 --> 04:11:59,279
>> Talk to me. Pareto talent.
6719
04:11:59,279 --> 04:12:01,040
Hey, uh first of all, thank you so much
6720
04:12:01,040 --> 04:12:02,239
for having me and thank you so much for
6721
04:12:02,239 --> 04:12:04,080
creating such a great offer. It's
6722
04:12:04,080 --> 04:12:05,439
amazing to be a part of
6723
04:12:05,439 --> 04:12:07,279
>> I'm happy to help. So tell me about the
6724
04:12:07,279 --> 04:12:09,600
core offer. Is it uh done with you, do
6725
04:12:09,600 --> 04:12:11,680
it yourself, done for you? What which is
6726
04:12:11,680 --> 04:12:13,120
it?
6727
04:12:13,120 --> 04:12:14,880
>> So it's done for you. We are finding
6728
04:12:14,880 --> 04:12:16,239
training and managing executive
6729
04:12:16,239 --> 04:12:18,080
assistants from Latin for entrepreneurs
6730
04:12:18,080 --> 04:12:19,600
from the US. Got it. And have the full
6731
04:12:19,600 --> 04:12:20,479
package for them.
6732
04:12:20,479 --> 04:12:22,880
>> So your services, how do you get uh how
6733
04:12:22,880 --> 04:12:24,720
do you get customers?
6734
04:12:24,720 --> 04:12:27,760
Right now it's 100% referrals like we
6735
04:12:27,760 --> 04:12:30,560
have organic traffic. My partner Kasm
6736
04:12:30,560 --> 04:12:33,279
has yeah Facebook following of 20,000
6737
04:12:33,279 --> 04:12:34,479
and we also launch.
6738
04:12:34,479 --> 04:12:35,600
>> Okay. So content.
6739
04:12:35,600 --> 04:12:37,760
>> Yeah. Content. We'll put that out. Okay.
6740
04:12:37,760 --> 04:12:39,760
And then primary lead getter. Is it you
6741
04:12:39,760 --> 04:12:41,920
guys then?
6742
04:12:41,920 --> 04:12:43,600
>> Um once again
6743
04:12:43,600 --> 04:12:44,880
>> I'm going to say it's it's you and your
6744
04:12:44,880 --> 04:12:46,080
employees that are the ones getting
6745
04:12:46,080 --> 04:12:47,439
getting these leads after you make the
6746
04:12:47,439 --> 04:12:48,399
content. Correct.
6747
04:12:48,399 --> 04:12:50,319
>> Yes. Yes. Okay. So we don't we don't
6748
04:12:50,319 --> 04:12:51,920
have any agencies here. And then I'm
6749
04:12:51,920 --> 04:12:53,920
going to say you guys are high ticket
6750
04:12:53,920 --> 04:12:54,640
because it's a
6751
04:12:54,640 --> 04:12:56,800
>> Yeah. So we start at 2,000 a month.
6752
04:12:56,800 --> 04:12:58,399
>> Yep. That's high ticket. Okay. Uh
6753
04:12:58,399 --> 04:13:00,399
primary selling mechanism online call
6754
04:13:00,399 --> 04:13:01,920
plus salesperson.
6755
04:13:01,920 --> 04:13:02,399
>> Yeah.
6756
04:13:02,399 --> 04:13:05,040
>> Okay. Got that. Uh how many employees
6757
04:13:05,040 --> 04:13:06,800
you just have do you have?
6758
04:13:06,800 --> 04:13:09,520
>> Uh seven and two co-ounders.
6759
04:13:09,520 --> 04:13:11,439
>> Okay. I'm going to say a few here. There
6760
04:13:11,439 --> 04:13:14,399
we go. Um and then uh current tech
6761
04:13:14,399 --> 04:13:16,720
status. What's uh what's your tech stack
6762
04:13:16,720 --> 04:13:17,600
look like?
6763
04:13:17,600 --> 04:13:19,840
>> Um I think we're pretty robust.
6764
04:13:19,840 --> 04:13:22,640
>> Pretty robust. So, I'm going to say hi.
6765
04:13:22,640 --> 04:13:23,120
>> Yeah.
6766
04:13:23,120 --> 04:13:25,439
>> Okay. And then what's the what's the
6767
04:13:25,439 --> 04:13:26,720
thing that's stopping you from growing
6768
04:13:26,720 --> 04:13:28,720
the business right now?
6769
04:13:28,720 --> 04:13:30,880
>> Uh, I think we hit the limit on our
6770
04:13:30,880 --> 04:13:32,880
referrals and scaling businesses in this
6771
04:13:32,880 --> 04:13:34,479
way. So, we're looking to open up for
6772
04:13:34,479 --> 04:13:35,680
lead generation.
6773
04:13:35,680 --> 04:13:36,720
>> All right. So, I'm going to say your
6774
04:13:36,720 --> 04:13:39,760
core offer is we recruit executive uh
6775
04:13:39,760 --> 04:13:41,439
assistants
6776
04:13:41,439 --> 04:13:43,199
offshore
6777
04:13:43,199 --> 04:13:46,720
or nearshore or whatever for CEOs. Is
6778
04:13:46,720 --> 04:13:48,080
that correct?
6779
04:13:48,080 --> 04:13:48,720
>> Yeah.
6780
04:13:48,720 --> 04:13:51,600
>> Okay. So, we're saving these changes.
6781
04:13:51,600 --> 04:13:54,880
Fantastic. Um, I have a leads
6782
04:13:54,880 --> 04:13:57,760
constraint. I
6783
04:13:57,760 --> 04:14:04,080
am uh I have 20K followers.
6784
04:14:04,080 --> 04:14:09,920
We are getting referrals as our primary
6785
04:14:09,920 --> 04:14:14,000
way of getting customers.
6786
04:14:14,000 --> 04:14:16,479
How can I
6787
04:14:16,479 --> 04:14:19,279
where should I say this? Where
6788
04:14:19,279 --> 04:14:21,199
should
6789
04:14:21,199 --> 04:14:24,720
I focus to get more leads?
6790
04:14:24,720 --> 04:14:26,640
Okay. So, we're going to let the AI do
6791
04:14:26,640 --> 04:14:28,399
its do its thinking. Um, in the
6792
04:14:28,399 --> 04:14:29,840
meantime,
6793
04:14:29,840 --> 04:14:30,239
>> yeah,
6794
04:14:30,239 --> 04:14:32,239
>> right now you have your content from
6795
04:14:32,239 --> 04:14:34,399
your partner that's doing 20K, right?
6796
04:14:34,399 --> 04:14:34,960
>> Yep.
6797
04:14:34,960 --> 04:14:36,319
>> Okay. And you are getting some leads
6798
04:14:36,319 --> 04:14:37,680
from that.
6799
04:14:37,680 --> 04:14:39,359
>> Yeah. So, majority of the leads like we
6800
04:14:39,359 --> 04:14:40,640
are in a lot of different communities,
6801
04:14:40,640 --> 04:14:42,720
masterminds, entrepreneurs, and so on.
6802
04:14:42,720 --> 04:14:44,479
This is where a lot of our leads right
6803
04:14:44,479 --> 04:14:44,720
now.
6804
04:14:44,720 --> 04:14:46,159
>> Okay. So, you just join mastermind so
6805
04:14:46,159 --> 04:14:47,199
that they can go get leads. That's
6806
04:14:47,199 --> 04:14:49,840
funny. Um, don't be fishing in my pond,
6807
04:14:49,840 --> 04:14:51,120
man. Um,
6808
04:14:51,120 --> 04:14:53,600
>> I'm providing the most money I can I
6809
04:14:53,600 --> 04:14:56,880
think I generated like 50 apps last week
6810
04:14:56,880 --> 04:14:57,359
for all the
6811
04:14:57,359 --> 04:14:59,279
>> post. No, I appreciate it. So, by the
6812
04:14:59,279 --> 04:15:00,640
way, if everybody who's watching, one of
6813
04:15:00,640 --> 04:15:02,080
the like I said, one of the big things
6814
04:15:02,080 --> 04:15:03,840
that I try and do to like start any kind
6815
04:15:03,840 --> 04:15:05,920
of community is I I hate one of my big
6816
04:15:05,920 --> 04:15:08,000
one big pet peeves is when it just
6817
04:15:08,000 --> 04:15:10,479
becomes like this this stream of just
6818
04:15:10,479 --> 04:15:12,960
asks. And so, I try to flip that and say
6819
04:15:12,960 --> 04:15:15,120
like if everyone gives, then everyone
6820
04:15:15,120 --> 04:15:16,159
will end up getting all the questions
6821
04:15:16,159 --> 04:15:17,279
answered. about the whole community to
6822
04:15:17,279 --> 04:15:19,520
be awesome. Um, and maybe anybody who's
6823
04:15:19,520 --> 04:15:20,960
listening to this who's in there can can
6824
04:15:20,960 --> 04:15:22,560
vouch for that in terms of how the how
6825
04:15:22,560 --> 04:15:24,399
the community is structured. Um, but if
6826
04:15:24,399 --> 04:15:25,760
everyone gives their best thing to the
6827
04:15:25,760 --> 04:15:26,800
community, the community just like
6828
04:15:26,800 --> 04:15:28,720
really profits. And so I appreciate you
6829
04:15:28,720 --> 04:15:30,800
building 50 apps for all these people.
6830
04:15:30,800 --> 04:15:34,080
Um, that being said, we need you to get
6831
04:15:34,080 --> 04:15:37,279
uh more leads. So, and good. So, right
6832
04:15:37,279 --> 04:15:39,279
now the AI just said to fix leads fast,
6833
04:15:39,279 --> 04:15:40,239
I need to know where your constraint
6834
04:15:40,239 --> 04:15:41,920
really is. And believe where are the
6835
04:15:41,920 --> 04:15:43,920
20,000 followers? So, that's going to be
6836
04:15:43,920 --> 04:15:44,640
Facebook.
6837
04:15:44,640 --> 04:15:45,359
>> Facebook,
6838
04:15:45,359 --> 04:15:46,319
>> right?
6839
04:15:46,319 --> 04:15:49,760
Facebook average client value is what?
6840
04:15:49,760 --> 04:15:52,239
>> Um, so if you're looking into the LTV,
6841
04:15:52,239 --> 04:15:54,399
it's uh 21,000
6842
04:15:54,399 --> 04:15:58,880
>> 21K. So I'll go one, Facebook two. And
6843
04:15:58,880 --> 04:16:00,159
so everybody who's following along with
6844
04:16:00,159 --> 04:16:02,880
this, like anybody who's used the AI,
6845
04:16:02,880 --> 04:16:05,520
it's savage. I mean, like if you were to
6846
04:16:05,520 --> 04:16:06,640
ask me, I'm half talking to you, you
6847
04:16:06,640 --> 04:16:07,439
have talking to everybody else, just
6848
04:16:07,439 --> 04:16:10,399
FYI. Um, if if you were to ask me, "Hey,
6849
04:16:10,399 --> 04:16:11,600
Alex, what should I do to grow my
6850
04:16:11,600 --> 04:16:12,960
business?" My answer is not going to be
6851
04:16:12,960 --> 04:16:13,920
this is what you should do to grow your
6852
04:16:13,920 --> 04:16:14,880
business. I'm going to have like nine
6853
04:16:14,880 --> 04:16:17,439
other questions. So, we program the AI
6854
04:16:17,439 --> 04:16:20,800
to model the same question uh framework.
6855
04:16:20,800 --> 04:16:22,319
And you can probably look at this versus
6856
04:16:22,319 --> 04:16:24,239
like a GPT or something like that. This
6857
04:16:24,239 --> 04:16:27,279
isn't designed to be like a uh like a
6858
04:16:27,279 --> 04:16:29,840
wrapper. Um we built this tool and we're
6859
04:16:29,840 --> 04:16:31,279
continuing to reinvest in this tool
6860
04:16:31,279 --> 04:16:32,800
because we're using this internally. So,
6861
04:16:32,800 --> 04:16:34,159
this is our internal tool that you guys
6862
04:16:34,159 --> 04:16:36,159
got access to um so that we can
6863
04:16:36,159 --> 04:16:37,920
basically consult with businesses. And
6864
04:16:37,920 --> 04:16:40,080
so, it follows the same logic path,
6865
04:16:40,080 --> 04:16:42,479
logic tree to to determine basically the
6866
04:16:42,479 --> 04:16:45,120
the the best answer. All right. So, 21K
6867
04:16:45,120 --> 04:16:47,840
is the uh average client value. Um, and
6868
04:16:47,840 --> 04:16:50,319
what's your close rates right now?
6869
04:16:50,319 --> 04:16:52,399
>> Um, approximately 70%.
6870
04:16:52,399 --> 04:16:54,000
>> Oo, we have a we have we have some
6871
04:16:54,000 --> 04:16:56,399
pricing power there. Okay. Uh, weekly
6872
04:16:56,399 --> 04:16:57,760
capacity, how many new clients can you
6873
04:16:57,760 --> 04:16:59,920
onboard without breaking?
6874
04:16:59,920 --> 04:17:01,680
>> Um, 10.
6875
04:17:01,680 --> 04:17:04,399
>> 10. And what's your current flow?
6876
04:17:04,399 --> 04:17:06,720
>> Uh, right now we are pretty low about
6877
04:17:06,720 --> 04:17:08,720
six per month. So, it depends. Okay. So,
6878
04:17:08,720 --> 04:17:10,960
you have you have 5x the capacity right
6879
04:17:10,960 --> 04:17:14,560
now. Okay. Ideal buyer
6880
04:17:14,560 --> 04:17:16,880
>> um founders that make 20,000 per month
6881
04:17:16,880 --> 04:17:19,279
plus and want to save their time.
6882
04:17:19,279 --> 04:17:22,800
>> Okay. Founders over 20k per month. Got
6883
04:17:22,800 --> 04:17:25,840
it. And then do you have an uh a basic
6884
04:17:25,840 --> 04:17:27,760
referral program?
6885
04:17:27,760 --> 04:17:30,239
>> Yeah, we are paying out $1,000 for any
6886
04:17:30,239 --> 04:17:32,399
referrals that have been sent to us.
6887
04:17:32,399 --> 04:17:37,040
>> $1,000 referral program. Okay, great.
6888
04:17:37,040 --> 04:17:42,479
So, um, one time, boom.
6889
04:17:42,479 --> 04:17:44,319
So, we're, uh, we're we're letting the
6890
04:17:44,319 --> 04:17:47,760
letting the AI do its let let Alex AI or
6891
04:17:47,760 --> 04:17:51,359
ACQAI do its do its thing. Um, let's see
6892
04:17:51,359 --> 04:17:52,720
if we match. We probably will, but
6893
04:17:52,720 --> 04:17:53,920
there's also, as a reminder, everybody,
6894
04:17:53,920 --> 04:17:56,159
there's many ways up the mountain. So,
6895
04:17:56,159 --> 04:17:59,760
if I'm trying to grow the business, I'm
6896
04:17:59,760 --> 04:18:02,239
Why can't we just do a lot more of the
6897
04:18:02,239 --> 04:18:04,960
follower stuff and then on Facebook and
6898
04:18:04,960 --> 04:18:06,399
have
6899
04:18:06,399 --> 04:18:09,279
CTAs there like how why not do that what
6900
04:18:09,279 --> 04:18:11,199
stops us from doing that
6901
04:18:11,199 --> 04:18:13,120
>> so we are actively posting and actively
6902
04:18:13,120 --> 04:18:15,600
growing that but I started also my
6903
04:18:15,600 --> 04:18:17,199
LinkedIn and we started this YouTube
6904
04:18:17,199 --> 04:18:19,359
channel but we are just not getting the
6905
04:18:19,359 --> 04:18:21,120
all the result that we're looking for so
6906
04:18:21,120 --> 04:18:23,199
we started Facebook ads we started call
6907
04:18:23,199 --> 04:18:24,560
outreach as well
6908
04:18:24,560 --> 04:18:26,960
>> and looking to test different avenues
6909
04:18:26,960 --> 04:18:29,840
and to save time spending money
6910
04:18:29,840 --> 04:18:32,159
>> yeah I would rather you because the
6911
04:18:32,159 --> 04:18:33,600
thing is is when you when you try that
6912
04:18:33,600 --> 04:18:35,600
many it's hard to get good you what I
6913
04:18:35,600 --> 04:18:37,040
mean at any of them because all of them
6914
04:18:37,040 --> 04:18:38,399
work, right? Like you could do outbound,
6915
04:18:38,399 --> 04:18:40,800
it would work. You could do uh I think
6916
04:18:40,800 --> 04:18:42,479
that I think making LinkedIn content
6917
04:18:42,479 --> 04:18:43,680
like I think if you just stuck with
6918
04:18:43,680 --> 04:18:45,279
content since that is the primary way
6919
04:18:45,279 --> 04:18:47,359
that you've done it, I'm okay with you
6920
04:18:47,359 --> 04:18:49,760
making more uh types of content if
6921
04:18:49,760 --> 04:18:51,199
you've like maxed out Facebook as in
6922
04:18:51,199 --> 04:18:52,479
like you're posting three four times a
6923
04:18:52,479 --> 04:18:54,080
day or how many times a day you're f
6924
04:18:54,080 --> 04:18:56,319
posting on Facebook? Uh
6925
04:18:56,319 --> 04:18:58,960
>> so about that. So custom post about um I
6926
04:18:58,960 --> 04:19:01,600
would say four times a day.
6927
04:19:01,600 --> 04:19:02,319
So yeah.
6928
04:19:02,319 --> 04:19:04,080
>> Okay. So you're maxed out on Facebook,
6929
04:19:04,080 --> 04:19:05,520
right?
6930
04:19:05,520 --> 04:19:07,199
Like I would say pretty much and
6931
04:19:07,199 --> 04:19:09,199
Facebook algorithm is doing weird stuff
6932
04:19:09,199 --> 04:19:11,520
recently. We only showed it to like 5%
6933
04:19:11,520 --> 04:19:13,600
of your audience actually
6934
04:19:13,600 --> 04:19:16,960
>> heard. Okay, let's see what the AI says.
6935
04:19:16,960 --> 04:19:19,040
So uh the move 7-day capacity drop to
6936
04:19:19,040 --> 04:19:20,399
your room audience. So you don't have a
6937
04:19:20,399 --> 04:19:21,760
lead problem. You have an an action
6938
04:19:21,760 --> 04:19:23,680
problem with 70% close rate on 20,000
6939
04:19:23,680 --> 04:19:25,120
Facebook follows. You can uh fill your
6940
04:19:25,120 --> 04:19:27,840
calendar quickly. So uh capacity drop to
6941
04:19:27,840 --> 04:19:29,840
room audience will be rule of 100. Um
6942
04:19:29,840 --> 04:19:31,680
limited spots with a clear CTA. Book
6943
04:19:31,680 --> 04:19:34,720
calls now. So, basically, you would be
6944
04:19:34,720 --> 04:19:36,640
DMing, like if you wanted to rip, which
6945
04:19:36,640 --> 04:19:39,359
this totally would. Um, if you wanted to
6946
04:19:39,359 --> 04:19:42,720
rip through the 20k followers, one is
6947
04:19:42,720 --> 04:19:45,279
you can DM them. Um, and from a drop
6948
04:19:45,279 --> 04:19:46,720
perspective, it's like this is what you
6949
04:19:46,720 --> 04:19:49,279
could do this week, like 10 priority EA
6950
04:19:49,279 --> 04:19:51,040
assignments, um, first come, first
6951
04:19:51,040 --> 04:19:52,239
serve, like we already have these
6952
04:19:52,239 --> 04:19:54,479
killers comment EA. So, that's a mini
6953
04:19:54,479 --> 04:19:57,279
chat um, integration that you can do.
6954
04:19:57,279 --> 04:19:58,479
And then you can do a wait list once
6955
04:19:58,479 --> 04:20:00,560
you're sold out. After you do that, then
6956
04:20:00,560 --> 04:20:02,640
you can do a DM sprint. I would also
6957
04:20:02,640 --> 04:20:04,080
weigh in here and I'm just going to say,
6958
04:20:04,080 --> 04:20:09,840
"Hey, how would you structure a giveaway
6959
04:20:09,840 --> 04:20:15,399
for my audience with my offer?"
6960
04:20:15,439 --> 04:20:17,600
So, I would probably look at doing a
6961
04:20:17,600 --> 04:20:19,279
giveaway here and say like, "We just got
6962
04:20:19,279 --> 04:20:20,640
Bill Gates is not really, but like
6963
04:20:20,640 --> 04:20:22,880
whatever. We got we got an unbelievable
6964
04:20:22,880 --> 04:20:24,399
super high tier executive assistant.
6965
04:20:24,399 --> 04:20:25,680
We're going to do a giveaway where we're
6966
04:20:25,680 --> 04:20:28,080
going to um give this this human being
6967
04:20:28,080 --> 04:20:28,960
away. You're not in the human
6968
04:20:28,960 --> 04:20:30,640
trafficking business. Calm down."
6969
04:20:30,640 --> 04:20:34,080
um and uh to to one lucky, you know,
6970
04:20:34,080 --> 04:20:35,920
bootstrap founder. Um and so we're going
6971
04:20:35,920 --> 04:20:38,399
to cover her payroll for, you know, six
6972
04:20:38,399 --> 04:20:39,680
months or three months or whatever,
6973
04:20:39,680 --> 04:20:42,239
right? Um and I think that that would be
6974
04:20:42,239 --> 04:20:45,600
a pretty big W and then you'll get a ton
6975
04:20:45,600 --> 04:20:47,279
of people that will show interest in
6976
04:20:47,279 --> 04:20:49,359
that and then you can work that lead
6977
04:20:49,359 --> 04:20:51,279
list. Like if I had to go like fastest
6978
04:20:51,279 --> 04:20:53,920
money, um literally what it outlined is
6979
04:20:53,920 --> 04:20:56,080
probably a pretty good like place to
6980
04:20:56,080 --> 04:20:58,880
start, which is do a a banger offer, DM
6981
04:20:58,880 --> 04:21:00,319
everybody. You can also pair it with a
6982
04:21:00,319 --> 04:21:02,319
giveaway. Um, and I think that would be
6983
04:21:02,319 --> 04:21:04,239
quite sexy.
6984
04:21:04,239 --> 04:21:06,080
>> Yeah, that sounds amazing. Awesome. We
6985
04:21:06,080 --> 04:21:08,159
done something similar. So, we were
6986
04:21:08,159 --> 04:21:09,920
restructuring the pricing basically. So,
6987
04:21:09,920 --> 04:21:11,279
right now we are charging 2,000 per
6988
04:21:11,279 --> 04:21:13,279
month plus we also charge 3,000
6989
04:21:13,279 --> 04:21:15,199
placement fee and I was working with
6990
04:21:15,199 --> 04:21:17,520
your previous a bit more and it said
6991
04:21:17,520 --> 04:21:20,399
that this upfront placement fee might be
6992
04:21:20,399 --> 04:21:21,840
a problem. So, it recommended to move
6993
04:21:21,840 --> 04:21:23,840
forward to just increasing the price to
6994
04:21:23,840 --> 04:21:26,319
perhaps 3,500 a month and then removing
6995
04:21:26,319 --> 04:21:27,600
the placement fee. Yeah.
6996
04:21:27,600 --> 04:21:31,439
>> And the other that I recommend is to add
6997
04:21:31,439 --> 04:21:34,720
a two weeks trial like part time try the
6998
04:21:34,720 --> 04:21:36,800
CA before you actually test anything.
6999
04:21:36,800 --> 04:21:38,239
>> So I'm going to tweak it and the only
7000
04:21:38,239 --> 04:21:39,840
reason I'm going to tweak it is that you
7001
04:21:39,840 --> 04:21:41,520
have a 70% close rate which maybe it
7002
04:21:41,520 --> 04:21:43,760
didn't know the first time around. Um
7003
04:21:43,760 --> 04:21:45,520
but given the fact you have a 70% close
7004
04:21:45,520 --> 04:21:47,040
rate, you don't need to increase your
7005
04:21:47,040 --> 04:21:49,120
conversion rate
7006
04:21:49,120 --> 04:21:51,520
>> on the sale. So I'm super game for you
7007
04:21:51,520 --> 04:21:53,840
just charging $3,500 a month. What I
7008
04:21:53,840 --> 04:21:56,479
would do is I would rather take that
7009
04:21:56,479 --> 04:21:58,319
kind of trial concept and say I'm sure
7010
04:21:58,319 --> 04:21:59,600
you already do this, but just emphasize
7011
04:21:59,600 --> 04:22:01,520
it more that we'll replace we'll replace
7012
04:22:01,520 --> 04:22:05,359
the EA um as many times as needed uh
7013
04:22:05,359 --> 04:22:07,760
within the first 90 days.
7014
04:22:07,760 --> 04:22:09,920
>> We already do lifetime. So
7015
04:22:09,920 --> 04:22:11,439
>> you do lifetime. Jesus.
7016
04:22:11,439 --> 04:22:11,680
>> Yes.
7017
04:22:11,680 --> 04:22:13,199
>> Uh well then yeah, I mean like to me
7018
04:22:13,199 --> 04:22:15,040
then you don't need the trial like you
7019
04:22:15,040 --> 04:22:16,479
know what I mean? Like if we're
7020
04:22:16,479 --> 04:22:18,000
replacing them as many times as needed,
7021
04:22:18,000 --> 04:22:19,279
it's like we're going to keep doing this
7022
04:22:19,279 --> 04:22:21,600
job for you until it's done.
7023
04:22:21,600 --> 04:22:22,960
>> Yeah, definitely. Awesome. That makes
7024
04:22:22,960 --> 04:22:23,359
sense.
7025
04:22:23,359 --> 04:22:24,880
>> And I would just use this exact line
7026
04:22:24,880 --> 04:22:26,399
because I'll tell you how how to how how
7027
04:22:26,399 --> 04:22:28,479
I would close this. I would say after
7028
04:22:28,479 --> 04:22:30,000
you finish your like pitch or your spiel
7029
04:22:30,000 --> 04:22:33,199
or I would say, "And that means when you
7030
04:22:33,199 --> 04:22:35,840
pay this, you've solved your EA problem
7031
04:22:35,840 --> 04:22:38,000
for good.
7032
04:22:38,000 --> 04:22:39,439
>> So you never have to think about this
7033
04:22:39,439 --> 04:22:40,880
again because this is all we do
7034
04:22:40,880 --> 04:22:42,720
full-time. And if you ever have any
7035
04:22:42,720 --> 04:22:44,479
issues, we will replace them
7036
04:22:44,479 --> 04:22:45,840
>> and look at all these reviews to prove
7037
04:22:45,840 --> 04:22:48,720
that I know that I'm that I'm legit."
7038
04:22:48,720 --> 04:22:50,239
>> That's awesome. Amazing. Awesome. That's
7039
04:22:50,239 --> 04:22:52,479
yeah, we so once somebody gets an EA
7040
04:22:52,479 --> 04:22:54,159
from us, our average customer life is
7041
04:22:54,159 --> 04:22:55,600
like 220 days.
7042
04:22:55,600 --> 04:22:55,840
>> Okay.
7043
04:22:55,840 --> 04:22:58,239
>> You know, so they never leave. So that's
7044
04:22:58,239 --> 04:22:59,439
exactly what we're looking for for
7045
04:22:59,439 --> 04:23:02,000
someone to like step like get in a in a
7046
04:23:02,000 --> 04:23:04,080
door and actually try because I know
7047
04:23:04,080 --> 04:23:05,279
once they try.
7048
04:23:05,279 --> 04:23:06,399
>> And the tough part that you're going to
7049
04:23:06,399 --> 04:23:08,000
have is that once once someone develops
7050
04:23:08,000 --> 04:23:09,279
a really good rapport with an EA,
7051
04:23:09,279 --> 04:23:10,800
they'll just cut you out.
7052
04:23:10,800 --> 04:23:11,920
>> Um and so
7053
04:23:11,920 --> 04:23:13,600
>> we have by outfield, they can buy them
7054
04:23:13,600 --> 04:23:14,000
out.
7055
04:23:14,000 --> 04:23:14,399
>> Okay.
7056
04:23:14,399 --> 04:23:15,199
>> After 90 days,
7057
04:23:15,199 --> 04:23:17,439
>> it's just the enforcability um because
7058
04:23:17,439 --> 04:23:19,199
of international, you know what I mean?
7059
04:23:19,199 --> 04:23:21,680
Um, so are you US- based?
7060
04:23:21,680 --> 04:23:23,520
>> Uh, I'm based in Wisconsin, uh, but
7061
04:23:23,520 --> 04:23:24,960
moved from Ukraine a couple of years
7062
04:23:24,960 --> 04:23:26,080
ago. Okay.
7063
04:23:26,080 --> 04:23:28,239
>> Yeah. As unfortunate this is, as as as
7064
04:23:28,239 --> 04:23:29,760
you start scaling, you're going to have
7065
04:23:29,760 --> 04:23:31,760
to start enforcing that and making sure
7066
04:23:31,760 --> 04:23:34,239
that people don't screw you because EAS,
7067
04:23:34,239 --> 04:23:35,760
if you really nail it, they'll stay for
7068
04:23:35,760 --> 04:23:38,080
like 10, 20 years. So, it's a great, you
7069
04:23:38,080 --> 04:23:39,520
know, model for you. I would just make
7070
04:23:39,520 --> 04:23:41,359
sure because 220 days is like nine
7071
04:23:41,359 --> 04:23:43,120
months. And I would bet that there's
7072
04:23:43,120 --> 04:23:44,239
plenty of people who've done it, found
7073
04:23:44,239 --> 04:23:45,600
the right EA, and then just like go
7074
04:23:45,600 --> 04:23:48,560
around you and then just pay them.
7075
04:23:48,560 --> 04:23:52,000
Um, so far like we are we are at 56
7076
04:23:52,000 --> 04:23:53,600
customers until right now and so far
7077
04:23:53,600 --> 04:23:55,199
like I can see all that. But yeah, I
7078
04:23:55,199 --> 04:23:56,880
definitely agree because our scale to
7079
04:23:56,880 --> 04:23:59,040
scale it to to 300. Yeah. And then there
7080
04:23:59,040 --> 04:24:00,399
was no way for me to know all of that.
7081
04:24:00,399 --> 04:24:00,880
Yeah.
7082
04:24:00,880 --> 04:24:02,080
>> Well, rock and roll. Let's see what the
7083
04:24:02,080 --> 04:24:03,199
giveaway looked like. Let's see if it
7084
04:24:03,199 --> 04:24:04,800
matched mine. There we go. Look, it did.
7085
04:24:04,800 --> 04:24:06,239
The AI matched mine.
7086
04:24:06,239 --> 04:24:07,520
>> Thank you so much. I appreciate you a
7087
04:24:07,520 --> 04:24:07,840
lot.
7088
04:24:07,840 --> 04:24:09,600
>> You bet. The EA placement scholarship
7089
04:24:09,600 --> 04:24:12,000
giveaway. Grand prize. The thing you
7090
04:24:12,000 --> 04:24:14,479
sell. So, one full-time nearshore EA
7091
04:24:14,479 --> 04:24:15,760
placement package. You wave your
7092
04:24:15,760 --> 04:24:17,920
placement fee. Make the prize your core
7093
04:24:17,920 --> 04:24:19,760
offer. Assign the clear dollar value. So
7094
04:24:19,760 --> 04:24:21,680
it be like this is a $20,000 value or
7095
04:24:21,680 --> 04:24:23,359
whatever it is, right? Six months or
7096
04:24:23,359 --> 04:24:26,399
18,000. Um and then the promotional
7097
04:24:26,399 --> 04:24:27,439
offer is going to be a partial
7098
04:24:27,439 --> 04:24:29,760
scholarship which you can knock out $500
7099
04:24:29,760 --> 04:24:31,920
a month um or something like that, which
7100
04:24:31,920 --> 04:24:36,880
would be times six. So uh $3,000 as the
7101
04:24:36,880 --> 04:24:40,479
as the second place offer.
7102
04:24:40,479 --> 04:24:42,399
>> Got you. Yeah. Try this week.
7103
04:24:42,399 --> 04:24:43,680
>> All right. Rock and roll. Appreciate
7104
04:24:43,680 --> 04:24:44,720
you.
7105
04:24:44,720 --> 04:24:46,000
>> Awesome. Thank you so much.
7106
04:24:46,000 --> 04:24:48,000
>> All right. That's it. So hopefully you
7107
04:24:48,000 --> 04:24:49,760
guys as you're going through this like
7108
04:24:49,760 --> 04:24:51,680
we've trained this AI like I know I've
7109
04:24:51,680 --> 04:24:54,159
already seen a bunch um of you guys
7110
04:24:54,159 --> 04:24:56,319
saying this online and I the the scale
7111
04:24:56,319 --> 04:24:57,920
advisor group has a bunch of these like
7112
04:24:57,920 --> 04:25:00,640
the AI is really good. Um we have a so
7113
04:25:00,640 --> 04:25:02,479
what people don't know is like we have a
7114
04:25:02,479 --> 04:25:04,000
very large infrastructure for for
7115
04:25:04,000 --> 04:25:05,920
technology atacquisition.com because
7116
04:25:05,920 --> 04:25:07,120
it's very common for us to like look
7117
04:25:07,120 --> 04:25:08,720
into a business and we have to like do
7118
04:25:08,720 --> 04:25:10,800
things right and so we have a full tech
7119
04:25:10,800 --> 04:25:13,760
team um of developers and engineers who
7120
04:25:13,760 --> 04:25:15,680
work for us. So we do DevOps, which is
7121
04:25:15,680 --> 04:25:17,600
internal development that we do. So like
7122
04:25:17,600 --> 04:25:18,720
basically streamline our internal
7123
04:25:18,720 --> 04:25:21,520
operations, but we also have full like
7124
04:25:21,520 --> 04:25:22,960
like our head of engineer is ex head of
7125
04:25:22,960 --> 04:25:24,479
engineering from Upwork, you know what I
7126
04:25:24,479 --> 04:25:27,040
mean? Um like we have very good people.
7127
04:25:27,040 --> 04:25:28,640
Um
7128
04:25:28,640 --> 04:25:30,399
and so that's why this is a really legit
7129
04:25:30,399 --> 04:25:32,560
product. Um and so I wanted to make sure
7130
04:25:32,560 --> 04:25:35,439
that everyone absolutely loved it. Uh
7131
04:25:35,439 --> 04:25:36,880
and so that's why we did it. So let's do
7132
04:25:36,880 --> 04:25:38,319
another one. So I want hopefully is
7133
04:25:38,319 --> 04:25:39,680
hopefully is this is this cool for you
7134
04:25:39,680 --> 04:25:41,359
guys? I I want to show that this stuff
7135
04:25:41,359 --> 04:25:43,760
like walking through the constraints and
7136
04:25:43,760 --> 04:25:45,920
figuring out what the real constraint is
7137
04:25:45,920 --> 04:25:48,720
um follows a process um so that you can
7138
04:25:48,720 --> 04:25:50,319
do it for yourself. All right, we're
7139
04:25:50,319 --> 04:25:53,760
going to go. Joseph Pas um Alliance
7140
04:25:53,760 --> 04:25:58,359
Health Group phone number. Here we go.
7141
04:26:03,680 --> 04:26:04,560
>> Hello,
7142
04:26:04,560 --> 04:26:06,159
>> Joseph. What's up? You're you're going
7143
04:26:06,159 --> 04:26:07,359
to be uh I think you're going to be the
7144
04:26:07,359 --> 04:26:10,640
last one that I'm gonna I'm gonna do. Um
7145
04:26:10,640 --> 04:26:14,159
so give me your give me give me the
7146
04:26:14,159 --> 04:26:16,640
rundown for the business. All right. So
7147
04:26:16,640 --> 04:26:20,080
talk to me. Business is it B? Alliance
7148
04:26:20,080 --> 04:26:22,319
Health Group. Okay.
7149
04:26:22,319 --> 04:26:24,319
>> Yep. We just it's a health insurance
7150
04:26:24,319 --> 04:26:26,159
call center. So we sell health insurance
7151
04:26:26,159 --> 04:26:27,600
people who call in. Yeah.
7152
04:26:27,600 --> 04:26:30,239
>> Uh mostly from inbound calls generated
7153
04:26:30,239 --> 04:26:32,880
from we have vendors and we also do our
7154
04:26:32,880 --> 04:26:36,399
own uh PPC as well. Okay. So, you have
7155
04:26:36,399 --> 04:26:38,159
vendors. Would you say is paid ads you
7156
04:26:38,159 --> 04:26:39,680
say your biggest or which one do you say
7157
04:26:39,680 --> 04:26:40,399
is your biggest?
7158
04:26:40,399 --> 04:26:43,120
>> Uh, for the most part it's like split.
7159
04:26:43,120 --> 04:26:45,040
I'd say 50/50 between vendors and paid
7160
04:26:45,040 --> 04:26:45,600
ads.
7161
04:26:45,600 --> 04:26:47,439
>> That's fine. I'll just do affiliates and
7162
04:26:47,439 --> 04:26:49,680
paid ads. All right. And would you say
7163
04:26:49,680 --> 04:26:52,319
this is a uh high volume low ticket or
7164
04:26:52,319 --> 04:26:54,800
low ticket or high volume?
7165
04:26:54,800 --> 04:26:58,479
>> I'd say mid mid and mid. It's about 300
7166
04:26:58,479 --> 04:27:01,439
300 bucks per uh per policy and it's
7167
04:27:01,439 --> 04:27:04,159
about you can do like 10 15 deals a day.
7168
04:27:04,159 --> 04:27:05,600
Oh, to me that's high volume. That's
7169
04:27:05,600 --> 04:27:08,080
high volume high ticket for sure. Um,
7170
04:27:08,080 --> 04:27:10,640
yeah. Yeah. So, like for me like Yeah, I
7171
04:27:10,640 --> 04:27:11,840
hear what you're saying. If you thought
7172
04:27:11,840 --> 04:27:14,800
low ticket was like sub 999, I'm like
7173
04:27:14,800 --> 04:27:16,720
I'm in the middle. Okay. Primary selling
7174
04:27:16,720 --> 04:27:18,080
mechanism is online call plus
7175
04:27:18,080 --> 04:27:20,000
salesperson, I'm guessing.
7176
04:27:20,000 --> 04:27:20,720
>> Yep.
7177
04:27:20,720 --> 04:27:22,640
>> Okay. How many employees do you have uh
7178
04:27:22,640 --> 04:27:23,920
right now?
7179
04:27:23,920 --> 04:27:25,040
>> Three reps.
7180
04:27:25,040 --> 04:27:27,920
>> Oh, okay. Uh total
7181
04:27:27,920 --> 04:27:28,800
>> a total. Yeah.
7182
04:27:28,800 --> 04:27:31,040
>> Okay. So, a few. Um, and then text
7183
04:27:31,040 --> 04:27:33,199
stack.
7184
04:27:33,199 --> 04:27:36,479
>> Uh, text stack. Uh, no, pretty much
7185
04:27:36,479 --> 04:27:37,920
Google Sheets.
7186
04:27:37,920 --> 04:27:38,720
>> Okay, work.
7187
04:27:38,720 --> 04:27:40,000
>> We have, uh, we have some like call
7188
04:27:40,000 --> 04:27:42,000
routing software and stuff like that,
7189
04:27:42,000 --> 04:27:43,359
but pretty much Google Sheets.
7190
04:27:43,359 --> 04:27:45,600
>> Okay, that works. I'm going to say CRM
7191
04:27:45,600 --> 04:27:48,239
and a few tools. Um, okay. Business
7192
04:27:48,239 --> 04:27:50,239
constraint right now. Can you just like
7193
04:27:50,239 --> 04:27:51,439
if you just had more leads, could you
7194
04:27:51,439 --> 04:27:54,159
sell them? Is that the
7195
04:27:54,159 --> 04:27:55,920
>> Yeah, 100%. That's that's the biggest
7196
04:27:55,920 --> 04:27:57,439
main conraint. I can dive in a little
7197
04:27:57,439 --> 04:27:58,159
deeper if you want.
7198
04:27:58,159 --> 04:27:59,840
>> Yeah. Yeah, go for And so the core offer
7199
04:27:59,840 --> 04:28:02,239
is is uh is it health insurance?
7200
04:28:02,239 --> 04:28:04,159
>> Yeah. Yeah. People would just call in
7201
04:28:04,159 --> 04:28:05,840
normally. So let's say like online, you
7202
04:28:05,840 --> 04:28:07,120
would probably type in like health
7203
04:28:07,120 --> 04:28:09,600
insurance. One of our ads would come up
7204
04:28:09,600 --> 04:28:11,439
and they would request a quote. We'd
7205
04:28:11,439 --> 04:28:12,720
reach out to them or they would call
7206
04:28:12,720 --> 04:28:14,720
inbound from the website or the call
7207
04:28:14,720 --> 04:28:16,159
extension ad online.
7208
04:28:16,159 --> 04:28:18,000
>> Okay, got it. What's um Shoot, I didn't
7209
04:28:18,000 --> 04:28:18,960
even do this for the other guys. I
7210
04:28:18,960 --> 04:28:21,120
forgot. Uh what's revenue right now?
7211
04:28:21,120 --> 04:28:22,640
>> Uh 750.
7212
04:28:22,640 --> 04:28:24,239
>> Okay.
7213
04:28:24,239 --> 04:28:26,560
Uh profit
7214
04:28:26,560 --> 04:28:29,439
>> uh 150. All right.
7215
04:28:29,439 --> 04:28:32,560
And then new customers per month.
7216
04:28:32,560 --> 04:28:35,840
>> Uh per month it's about 24
7217
04:28:35,840 --> 04:28:36,960
per week.
7218
04:28:36,960 --> 04:28:38,479
>> 200. Okay.
7219
04:28:38,479 --> 04:28:38,800
>> Yeah.
7220
04:28:38,800 --> 04:28:40,080
>> And then current headcount you said was
7221
04:28:40,080 --> 04:28:42,880
three. Okay. Save some changes. Boom. By
7222
04:28:42,880 --> 04:28:44,319
the way, everybody, whenever you're
7223
04:28:44,319 --> 04:28:45,920
talking to the AI, every time you want
7224
04:28:45,920 --> 04:28:48,159
to ask a new thing, start a new chat.
7225
04:28:48,159 --> 04:28:50,880
So, just like for everyone. Okay. Um All
7226
04:28:50,880 --> 04:28:52,319
right. So, let's let's scale the
7227
04:28:52,319 --> 04:28:55,120
business. So, what stops you from
7228
04:28:55,120 --> 04:28:57,600
spending more PPC? So like if we're
7229
04:28:57,600 --> 04:28:59,120
walking through our logic tree, what
7230
04:28:59,120 --> 04:29:01,600
stops us from doing more?
7231
04:29:01,600 --> 04:29:03,840
>> So on well I'll start with vendors. On
7232
04:29:03,840 --> 04:29:05,760
vendors they just don't have any more
7233
04:29:05,760 --> 04:29:07,680
volume to give. So there's nothing more
7234
04:29:07,680 --> 04:29:11,199
to buy on there. And on PPC
7235
04:29:11,199 --> 04:29:15,520
uh we can up the budgets but uh when we
7236
04:29:15,520 --> 04:29:17,439
scale past a certain point and even as
7237
04:29:17,439 --> 04:29:19,520
of right now it's just not profitable.
7238
04:29:19,520 --> 04:29:23,199
>> Yeah. Heard. So um couple things. Are
7239
04:29:23,199 --> 04:29:24,640
you only licensed to sell one type of
7240
04:29:24,640 --> 04:29:26,399
insurance?
7241
04:29:26,399 --> 04:29:28,640
Uh yeah, just health insurance.
7242
04:29:28,640 --> 04:29:31,279
>> Okay. Are there other products that you
7243
04:29:31,279 --> 04:29:32,560
could sell that are insurance products
7244
04:29:32,560 --> 04:29:35,199
that could increase the average cart?
7245
04:29:35,199 --> 04:29:38,319
>> Uh yes, but they're already attached.
7246
04:29:38,319 --> 04:29:41,040
>> So,
7247
04:29:41,040 --> 04:29:43,120
stuff like that.
7248
04:29:43,120 --> 04:29:44,479
>> Okay.
7249
04:29:44,479 --> 04:29:46,960
>> Well, so I'm gonna I'm gonna go back to
7250
04:29:46,960 --> 04:29:48,080
the first thing you said, which is like
7251
04:29:48,080 --> 04:29:49,600
the vendors that you have don't have any
7252
04:29:49,600 --> 04:29:51,199
more lead volume. There's for sure other
7253
04:29:51,199 --> 04:29:55,920
vendors that have other leads. Sure.
7254
04:29:55,920 --> 04:29:56,239
Yeah.
7255
04:29:56,239 --> 04:29:57,760
>> Right. Well, I mean, I'm just like
7256
04:29:57,760 --> 04:29:58,960
thinking volume. It's like there are
7257
04:29:58,960 --> 04:30:00,319
other health insurance providers and
7258
04:30:00,319 --> 04:30:01,520
they also go to vendors who get them
7259
04:30:01,520 --> 04:30:04,560
leads. So, like I'm sure that exists.
7260
04:30:04,560 --> 04:30:08,239
Um, and so I would probably if I'm you,
7261
04:30:08,239 --> 04:30:12,159
um, you would have to have a conversion
7262
04:30:12,159 --> 04:30:14,159
issue. So, if we're like metrics I'm not
7263
04:30:14,159 --> 04:30:15,199
worried about, market I'm not worried
7264
04:30:15,199 --> 04:30:16,080
about, model I'm not worried about
7265
04:30:16,080 --> 04:30:17,279
because all that stuff is more or less
7266
04:30:17,279 --> 04:30:18,800
controlled. Insurance is a good is a
7267
04:30:18,800 --> 04:30:20,080
good vehicle. There's plenty of people
7268
04:30:20,080 --> 04:30:21,359
need health insurance and you have
7269
04:30:21,359 --> 04:30:23,359
metrics. Fine. All that stuff's there.
7270
04:30:23,359 --> 04:30:25,040
So I actually think that your issue is
7271
04:30:25,040 --> 04:30:26,800
going to be on sales and LTV. So
7272
04:30:26,800 --> 04:30:29,439
conversion and lifetime value. So I
7273
04:30:29,439 --> 04:30:31,199
would be focused on the conversion part
7274
04:30:31,199 --> 04:30:33,600
because if you have ads in PPC like
7275
04:30:33,600 --> 04:30:34,720
you're getting clicks but it's like can
7276
04:30:34,720 --> 04:30:38,000
we get cheaper clicks number one with
7277
04:30:38,000 --> 04:30:39,920
better headlines and can we get higher
7278
04:30:39,920 --> 04:30:41,840
conversions on our landing pages through
7279
04:30:41,840 --> 04:30:44,319
just conversion optimization. So, do you
7280
04:30:44,319 --> 04:30:47,680
have um anything like Hot Jar or Mouse
7281
04:30:47,680 --> 04:30:50,000
Flow or anything like that that's um
7282
04:30:50,000 --> 04:30:51,040
installed on the page so you can
7283
04:30:51,040 --> 04:30:52,720
actually watch people do it? Uh actually
7284
04:30:52,720 --> 04:30:53,840
use your page and you can see where
7285
04:30:53,840 --> 04:30:55,040
they're where they're falling off.
7286
04:30:55,040 --> 04:30:56,800
>> Yeah, I have a clarity.
7287
04:30:56,800 --> 04:30:59,199
>> Okay. So, how often are you running
7288
04:30:59,199 --> 04:31:01,279
conversion rate tests and what is the
7289
04:31:01,279 --> 04:31:05,479
actual opt-in offer?
7290
04:31:06,319 --> 04:31:08,880
>> Um I check clarity daily and I see where
7291
04:31:08,880 --> 04:31:09,680
they're clicking.
7292
04:31:09,680 --> 04:31:12,479
>> Yeah. But, you know, from our click to
7293
04:31:12,479 --> 04:31:14,080
call rate, so let's say it's about it's
7294
04:31:14,080 --> 04:31:16,640
it's 25%. So, from the people who see
7295
04:31:16,640 --> 04:31:20,080
our ad, um, it's about 25%.
7296
04:31:20,080 --> 04:31:22,960
>> Okay, that's pretty good. Um, so then my
7297
04:31:22,960 --> 04:31:24,239
So, what percentage of people are you
7298
04:31:24,239 --> 04:31:26,080
closing?
7299
04:31:26,080 --> 04:31:30,479
>> Uh, so of total calls, it's about we
7300
04:31:30,479 --> 04:31:33,840
have a 7% and then of qualified calls,
7301
04:31:33,840 --> 04:31:36,479
it's about 25%.
7302
04:31:36,479 --> 04:31:39,680
>> Okay. I mean, I'm not gonna beat you up
7303
04:31:39,680 --> 04:31:41,840
on that. You know, 25's okay. You know
7304
04:31:41,840 --> 04:31:43,279
what I mean? It's not like bad. It's not
7305
04:31:43,279 --> 04:31:46,399
good. It's just like fine. Um, the thing
7306
04:31:46,399 --> 04:31:48,960
is is like I feel like so again, if I'm
7307
04:31:48,960 --> 04:31:50,640
if I'm going back, I would do number
7308
04:31:50,640 --> 04:31:52,080
one, I'd be reaching out to way more
7309
04:31:52,080 --> 04:31:54,560
vendors, number one. But the big issue
7310
04:31:54,560 --> 04:31:58,239
that I see is the LTV problem.
7311
04:31:58,239 --> 04:31:59,520
>> So, it's like we have to sell more
7312
04:31:59,520 --> 04:32:00,960
products to make this thing more
7313
04:32:00,960 --> 04:32:03,960
profitable.
7314
04:32:05,120 --> 04:32:07,279
>> Okay. said differently, is there? Yeah.
7315
04:32:07,279 --> 04:32:08,960
Said differently, is there, if you look
7316
04:32:08,960 --> 04:32:10,319
at your customer base, there's obviously
7317
04:32:10,319 --> 04:32:11,680
some customers that are worth more than
7318
04:32:11,680 --> 04:32:13,359
others. Correct?
7319
04:32:13,359 --> 04:32:14,319
>> Yeah.
7320
04:32:14,319 --> 04:32:16,560
>> So, I would be thinking Yeah. I would be
7321
04:32:16,560 --> 04:32:20,000
thinking, is there a way that I can add
7322
04:32:20,000 --> 04:32:23,840
friction or tweak my targeting so that I
7323
04:32:23,840 --> 04:32:26,000
can better target the customers that
7324
04:32:26,000 --> 04:32:27,359
have the highest lifetime value? Because
7325
04:32:27,359 --> 04:32:30,239
basically, you have an issue of cact,
7326
04:32:30,239 --> 04:32:32,159
right? And I would bet also you have
7327
04:32:32,159 --> 04:32:33,439
some elements of cash flow because you
7328
04:32:33,439 --> 04:32:34,800
don't, you know, the premiums get paid
7329
04:32:34,800 --> 04:32:36,960
sometimes in a rears, whatever, right?
7330
04:32:36,960 --> 04:32:39,199
Um, what percentage are you getting paid
7331
04:32:39,199 --> 04:32:41,040
up front with these uh these deals from
7332
04:32:41,040 --> 04:32:42,399
your carrier?
7333
04:32:42,399 --> 04:32:43,840
>> Uh, well, they're actually they're
7334
04:32:43,840 --> 04:32:47,600
advanced. So upfront on a 320 that pays
7335
04:32:47,600 --> 04:32:49,439
out 819.
7336
04:32:49,439 --> 04:32:49,760
>> Okay.
7337
04:32:49,760 --> 04:32:52,720
>> And then on the back end, that's an
7338
04:32:52,720 --> 04:32:57,120
LTGP. Yeah. Uh, that 819. And then the
7339
04:32:57,120 --> 04:33:00,399
back end is also 975.
7340
04:33:00,399 --> 04:33:03,199
So you're making 1,700ish in total,
7341
04:33:03,199 --> 04:33:04,480
right?
7342
04:33:04,480 --> 04:33:06,000
>> Uh yeah, about
7343
04:33:06,000 --> 04:33:08,240
>> Okay. In gross profit
7344
04:33:08,240 --> 04:33:11,039
>> in gross profit off of
7345
04:33:11,039 --> 04:33:12,480
>> So fundamentally it's like we need
7346
04:33:12,480 --> 04:33:14,719
cheaper leads or we have to make more
7347
04:33:14,719 --> 04:33:17,760
from them. And if you have fixed costs
7348
04:33:17,760 --> 04:33:19,199
like basically you can't tweak the price
7349
04:33:19,199 --> 04:33:20,320
because that's what the carrier that's
7350
04:33:20,320 --> 04:33:21,119
the price, right?
7351
04:33:21,119 --> 04:33:21,600
>> Yes.
7352
04:33:21,600 --> 04:33:23,279
>> Um so it means that we have to sell more
7353
04:33:23,279 --> 04:33:25,920
expensive packages. thing A, option A,
7354
04:33:25,920 --> 04:33:28,160
option B is, which is paired with option
7355
04:33:28,160 --> 04:33:30,160
A is that you're doing that to a better
7356
04:33:30,160 --> 04:33:33,439
avatar. Um, or C, we just have to get
7357
04:33:33,439 --> 04:33:35,600
more cheap leads, which again, the
7358
04:33:35,600 --> 04:33:36,959
conversion rate stuff, I'm not like,
7359
04:33:36,959 --> 04:33:38,879
you're not bad there. Your sales r's
7360
04:33:38,879 --> 04:33:40,561
okay. The conversion rate from click to
7361
04:33:40,561 --> 04:33:43,039
phone call is pretty decent. So, like
7362
04:33:43,039 --> 04:33:45,600
I'm not as concerned there. So, I'm
7363
04:33:45,600 --> 04:33:46,799
thinking I'm going to go to more
7364
04:33:46,799 --> 04:33:48,959
vendors. That would be like objective
7365
04:33:48,959 --> 04:33:51,279
number one would be go to like 20 times
7366
04:33:51,279 --> 04:33:52,959
100 times the vendors you currently are
7367
04:33:52,959 --> 04:33:54,480
and see if you can get leads at the
7368
04:33:54,480 --> 04:33:55,760
price that you need them to be at.
7369
04:33:55,760 --> 04:33:57,520
That's like thing one. How are those
7370
04:33:57,520 --> 04:33:58,719
leads compared to the ones that you're
7371
04:33:58,719 --> 04:34:01,840
buying off PPC?
7372
04:34:01,840 --> 04:34:04,480
Uh, so there's one source out there who
7373
04:34:04,480 --> 04:34:07,119
has uh good leads and you know they make
7374
04:34:07,119 --> 04:34:08,879
you go to their carrier and have their
7375
04:34:08,879 --> 04:34:11,039
contracts and they're good ones but
7376
04:34:11,039 --> 04:34:12,561
everyone else besides that and I've
7377
04:34:12,561 --> 04:34:14,561
tried some I haven't tried all but I've
7378
04:34:14,561 --> 04:34:16,719
tried some of them they aren't uh nearly
7379
04:34:16,719 --> 04:34:19,359
as good and then just that and PPC is
7380
04:34:19,359 --> 04:34:21,439
what's really supplying the volume. So
7381
04:34:21,439 --> 04:34:23,199
what I would look at is how they're
7382
04:34:23,199 --> 04:34:25,439
qualifying their leads because obviously
7383
04:34:25,439 --> 04:34:28,240
they have good quality leads. And so I
7384
04:34:28,240 --> 04:34:31,279
would look at their actual click journey
7385
04:34:31,279 --> 04:34:32,879
and say, okay, what are the ads they're
7386
04:34:32,879 --> 04:34:34,160
running? What are the pages they're
7387
04:34:34,160 --> 04:34:35,680
doing? How are they nurturing the leads?
7388
04:34:35,680 --> 04:34:37,119
Like are they doing driving them to a
7389
04:34:37,119 --> 04:34:38,719
webinar and that's how they enrich the
7390
04:34:38,719 --> 04:34:40,879
leads and then they do a call to action
7391
04:34:40,879 --> 04:34:42,160
um to get people take the next step?
7392
04:34:42,160 --> 04:34:44,000
Like what's their process? And I would
7393
04:34:44,000 --> 04:34:45,600
look at mimicking that process for my
7394
04:34:45,600 --> 04:34:47,520
PBC because right now you're competing
7395
04:34:47,520 --> 04:34:49,039
against everybody else who's doing just
7396
04:34:49,039 --> 04:34:50,480
basic PPC campaigns. And so you're
7397
04:34:50,480 --> 04:34:51,840
priced at close to market rate because
7398
04:34:51,840 --> 04:34:53,279
the pricing is commoditized within
7399
04:34:53,279 --> 04:34:55,279
insurance. And so it's like you have to
7400
04:34:55,279 --> 04:34:57,039
find better raw material that's likely
7401
04:34:57,039 --> 04:34:59,039
like raw diamonds versus diamonds. So
7402
04:34:59,039 --> 04:35:00,480
it's like to do the raw diamonds, it's
7403
04:35:00,480 --> 04:35:01,680
like you might have to cast a broader
7404
04:35:01,680 --> 04:35:03,520
net to shittier leads and then enrich
7405
04:35:03,520 --> 04:35:06,879
them through a nurture or sales process.
7406
04:35:06,879 --> 04:35:09,760
>> That's like if I'm you, if we can't like
7407
04:35:09,760 --> 04:35:11,600
I I'm taking I put a big asterisk on
7408
04:35:11,600 --> 04:35:13,199
this. Like if we can't increase LTB,
7409
04:35:13,199 --> 04:35:15,119
which I still am like I don't have time
7410
04:35:15,119 --> 04:35:17,680
to go through it now. Um but like that
7411
04:35:17,680 --> 04:35:19,119
would be like thing one because if you
7412
04:35:19,119 --> 04:35:20,879
could just like spend more on PPC, then
7413
04:35:20,879 --> 04:35:22,240
I'd be like let's do that. That's for
7414
04:35:22,240 --> 04:35:23,520
sure the easiest path. And if we could
7415
04:35:23,520 --> 04:35:25,279
do that by increasing uh either the
7416
04:35:25,279 --> 04:35:26,240
person that we're selling to or the
7417
04:35:26,240 --> 04:35:27,520
average package, that makes the most
7418
04:35:27,520 --> 04:35:29,840
sense. The second most sense is okay,
7419
04:35:29,840 --> 04:35:31,680
can we juice our PBC in a different way
7420
04:35:31,680 --> 04:35:35,119
by wide like way more broadening uh the
7421
04:35:35,119 --> 04:35:39,119
market that we're going after? Um
7422
04:35:39,119 --> 04:35:43,119
and then having an enrichment process.
7423
04:35:43,119 --> 04:35:44,879
>> So would you recommend that second round
7424
04:35:44,879 --> 04:35:47,039
just to make everybody, you know, come
7425
04:35:47,039 --> 04:35:48,480
in and then we'll qualify you from
7426
04:35:48,480 --> 04:35:49,119
there?
7427
04:35:49,119 --> 04:35:51,039
>> I would because I mean again it's like
7428
04:35:51,039 --> 04:35:52,639
you're capped right now is what it
7429
04:35:52,639 --> 04:35:54,240
sounds like, right?
7430
04:35:54,240 --> 04:35:54,879
>> Yeah.
7431
04:35:54,879 --> 04:35:55,920
>> Right. Right? And so it's like we have
7432
04:35:55,920 --> 04:35:57,359
to do something and the worst case
7433
04:35:57,359 --> 04:35:58,719
scenario kind of like the reversible
7434
04:35:58,719 --> 04:35:59,920
decisions like you can always roll it
7435
04:35:59,920 --> 04:36:00,719
back,
7436
04:36:00,719 --> 04:36:01,680
>> right? You can always go back to what
7437
04:36:01,680 --> 04:36:03,920
you're doing. Worst case scenario.
7438
04:36:03,920 --> 04:36:06,080
>> Um but we have to break some stuff. You
7439
04:36:06,080 --> 04:36:07,039
know, we have to break some eggs. We
7440
04:36:07,039 --> 04:36:10,240
want to make an omelet. So um thing one
7441
04:36:10,240 --> 04:36:11,680
though is I'll bet you there are other
7442
04:36:11,680 --> 04:36:14,400
good vendors. That's like thing one.
7443
04:36:14,400 --> 04:36:17,119
Thing two is I really want to dive into
7444
04:36:17,119 --> 04:36:18,561
the LTV thing because that would be the
7445
04:36:18,561 --> 04:36:21,039
lowest risk we have to make. Thing three
7446
04:36:21,039 --> 04:36:22,719
is I want to reverse engineer the best
7447
04:36:22,719 --> 04:36:25,600
guys funnel.
7448
04:36:25,600 --> 04:36:26,959
Okay,
7449
04:36:26,959 --> 04:36:28,400
>> those would be those would be my angles
7450
04:36:28,400 --> 04:36:30,320
of attack.
7451
04:36:30,320 --> 04:36:33,279
>> Gotcha. And for LTVI, I don't want to
7452
04:36:33,279 --> 04:36:34,959
get too deep into it, but
7453
04:36:34,959 --> 04:36:36,400
>> like what are a couple things that
7454
04:36:36,400 --> 04:36:38,160
you've seen that you know other people
7455
04:36:38,160 --> 04:36:40,799
have done in this space?
7456
04:36:40,799 --> 04:36:42,480
>> It's really just comes down to going up
7457
04:36:42,480 --> 04:36:44,561
market for Avatar so that you can sell
7458
04:36:44,561 --> 04:36:46,320
more expensive health health insurance
7459
04:36:46,320 --> 04:36:48,561
products because like the you know the
7460
04:36:48,561 --> 04:36:50,080
thing with insurance is that the the
7461
04:36:50,080 --> 04:36:51,520
limit does not exist. You know what I
7462
04:36:51,520 --> 04:36:53,119
mean? like you can go
7463
04:36:53,119 --> 04:36:55,439
>> zillions of dollars. And so right now,
7464
04:36:55,439 --> 04:36:57,199
>> and this don't take this as a slight,
7465
04:36:57,199 --> 04:36:58,719
like you're kind of bottom feeding in
7466
04:36:58,719 --> 04:37:01,119
terms of the, you know, the the packages
7467
04:37:01,119 --> 04:37:02,400
that you're selling. You know, you're
7468
04:37:02,400 --> 04:37:04,160
selling $300 price points. Like it's
7469
04:37:04,160 --> 04:37:06,400
not, you know, the most qualified. I
7470
04:37:06,400 --> 04:37:08,000
mean, it's it's like people with pulse
7471
04:37:08,000 --> 04:37:12,000
is the is the qualification, right? So
7472
04:37:12,000 --> 04:37:14,719
for sure there's a much higher echelon
7473
04:37:14,719 --> 04:37:16,400
even general consumer that you'd be
7474
04:37:16,400 --> 04:37:19,920
looking at selling you know 2,000 5,000
7475
04:37:19,920 --> 04:37:22,320
you know dollar type deals which are for
7476
04:37:22,320 --> 04:37:24,561
like my life insurance mine's egregious
7477
04:37:24,561 --> 04:37:26,080
so I just leave it there.
7478
04:37:26,080 --> 04:37:26,561
>> Yeah.
7479
04:37:26,561 --> 04:37:28,561
>> Hate to cut you off there. I'm sorry I
7480
04:37:28,561 --> 04:37:30,080
didn't make that clear but it's 300 a
7481
04:37:30,080 --> 04:37:30,719
month.
7482
04:37:30,719 --> 04:37:32,639
>> Okay. 300 a month so a little better.
7483
04:37:32,639 --> 04:37:33,359
Yeah. Yeah.
7484
04:37:33,359 --> 04:37:35,359
>> Um
7485
04:37:35,359 --> 04:37:37,119
>> but it's still like
7486
04:37:37,119 --> 04:37:39,439
>> you know it's I'm shrugging. You know
7487
04:37:39,439 --> 04:37:41,600
what I mean? It's like I understand some
7488
04:37:41,600 --> 04:37:43,520
people buy like thousands and that or
7489
04:37:43,520 --> 04:37:43,920
millions.
7490
04:37:43,920 --> 04:37:45,680
>> What's the ultimate? Great.
7491
04:37:45,680 --> 04:37:49,279
>> Yeah. Right. Yeah. I I Yeah. I put it a
7492
04:37:49,279 --> 04:37:52,400
gazillion dollars a year into mine. Um
7493
04:37:52,400 --> 04:37:54,320
uh but okay. So those are the big three.
7494
04:37:54,320 --> 04:37:57,600
That's what I'd be focused on
7495
04:37:57,600 --> 04:38:00,879
>> in terms of points of constraint.
7496
04:38:00,879 --> 04:38:03,600
>> Vendors. Uh get the other guys PPC.
7497
04:38:03,600 --> 04:38:05,680
>> Yep. And then I would still just like
7498
04:38:05,680 --> 04:38:07,039
bang my head against the wall to try and
7499
04:38:07,039 --> 04:38:08,639
figure out reverse engineer of the
7500
04:38:08,639 --> 04:38:11,279
customers that I sell. Is there is there
7501
04:38:11,279 --> 04:38:12,639
a package that is bigger and more
7502
04:38:12,639 --> 04:38:13,840
expensive than the one that I currently
7503
04:38:13,840 --> 04:38:17,840
am that I can sell instead?
7504
04:38:17,840 --> 04:38:19,600
>> Well, okay. So, let's say like there was
7505
04:38:19,600 --> 04:38:20,879
a package there. There's let's say
7506
04:38:20,879 --> 04:38:23,760
there's a $1,000 a month package,
7507
04:38:23,760 --> 04:38:26,080
>> but we sell the 325 because that's what
7508
04:38:26,080 --> 04:38:27,199
people can afford.
7509
04:38:27,199 --> 04:38:27,439
>> Yeah.
7510
04:38:27,439 --> 04:38:28,480
>> And then when they can't afford the
7511
04:38:28,480 --> 04:38:29,920
thousand, we sell them a thousand.
7512
04:38:29,920 --> 04:38:32,240
>> Yes. So, the issue is that we just need
7513
04:38:32,240 --> 04:38:34,080
the messaging to match. So, kind of like
7514
04:38:34,080 --> 04:38:35,520
the example I gave earlier where it's
7515
04:38:35,520 --> 04:38:37,600
like maybe your lead cost doubles, but
7516
04:38:37,600 --> 04:38:39,920
your LTV 5xes.
7517
04:38:39,920 --> 04:38:40,879
>> Yeah.
7518
04:38:40,879 --> 04:38:42,719
>> And the thing is is usually that's where
7519
04:38:42,719 --> 04:38:44,240
everyone's afraid to go. And that's why
7520
04:38:44,240 --> 04:38:46,320
most people don't get there.
7521
04:38:46,320 --> 04:38:47,920
>> So, like the other other agents or
7522
04:38:47,920 --> 04:38:49,520
brokerages in the space are afraid to
7523
04:38:49,520 --> 04:38:51,600
spend that kind of money on a lead. But
7524
04:38:51,600 --> 04:38:53,279
if you just have the qualifications,
7525
04:38:53,279 --> 04:38:55,439
that's how you can skim off the top. And
7526
04:38:55,439 --> 04:38:57,359
the upside is usually significantly
7527
04:38:57,359 --> 04:38:59,520
larger than the incremental cost
7528
04:38:59,520 --> 04:39:00,639
increase. Like you'll still have an
7529
04:39:00,639 --> 04:39:01,680
increase in lead cost, don't get me
7530
04:39:01,680 --> 04:39:04,000
wrong, but it's just like I will spend
7531
04:39:04,000 --> 04:39:05,439
two times as much for the lead or three
7532
04:39:05,439 --> 04:39:06,480
times as much for the lead, but they
7533
04:39:06,480 --> 04:39:09,920
will be worth 10 times as much.
7534
04:39:09,920 --> 04:39:12,639
>> Yeah. So go after the the the bigger
7535
04:39:12,639 --> 04:39:13,039
>> Yeah.
7536
04:39:13,039 --> 04:39:14,400
>> the bigger price point market.
7537
04:39:14,400 --> 04:39:16,240
>> Yes.
7538
04:39:16,240 --> 04:39:16,719
>> Yes.
7539
04:39:16,719 --> 04:39:18,719
>> 100%. And when I was reading the book, I
7540
04:39:18,719 --> 04:39:20,719
read the the playbook earlier, I just
7541
04:39:20,719 --> 04:39:22,561
saw a price increase. I was like, this
7542
04:39:22,561 --> 04:39:24,320
is probably the best way to go.
7543
04:39:24,320 --> 04:39:27,680
>> Yeah. So, the lost chapters, uh, your
7544
04:39:27,680 --> 04:39:30,400
first avatar is what I use the process
7545
04:39:30,400 --> 04:39:32,400
in that chapter to reverse engineer
7546
04:39:32,400 --> 04:39:33,920
which customer segment is probably worth
7547
04:39:33,920 --> 04:39:34,879
the most to you. And then I would
7548
04:39:34,879 --> 04:39:36,400
reverse that into the messaging and the
7549
04:39:36,400 --> 04:39:39,280
headlines. Um, and maybe even a lead
7550
04:39:39,280 --> 04:39:41,120
magnet if I have to to get way cheaper
7551
04:39:41,120 --> 04:39:43,600
leads. Um, that would get that would
7552
04:39:43,600 --> 04:39:45,680
attract that level like executive health
7553
04:39:45,680 --> 04:39:47,760
insurance, right? Or professional
7554
04:39:47,760 --> 04:39:48,958
health, you know, I mean, I'd be looking
7555
04:39:48,958 --> 04:39:50,400
at those types of terms. Yeah.
7556
04:39:50,400 --> 04:39:53,840
>> Uh, to get higher higher quality leads.
7557
04:39:53,840 --> 04:39:55,760
Cool.
7558
04:39:55,760 --> 04:39:57,680
>> 100%. This is great. Yeah.
7559
04:39:57,680 --> 04:40:00,160
>> Okay. Appreciate you, man.
7560
04:40:00,160 --> 04:40:01,120
>> Awesome.
7561
04:40:01,120 --> 04:40:03,600
>> Talk to you. See you.
7562
04:40:03,600 --> 04:40:06,560
>> So, um, we were at we were at 2:30. I
7563
04:40:06,560 --> 04:40:08,560
know that, uh, I tried I I told my team,
7564
04:40:08,560 --> 04:40:09,440
they're like, "How long do you think you
7565
04:40:09,440 --> 04:40:10,958
go?" I was like, "I think it'll be four
7566
04:40:10,958 --> 04:40:12,560
hours." So, it's a little longer than
7567
04:40:12,560 --> 04:40:15,920
that. Um, but I, uh, I'll I'll wrap us
7568
04:40:15,920 --> 04:40:18,480
up. Hopefully, you guys enjoyed this um
7569
04:40:18,480 --> 04:40:20,160
this this workshop. The whole point here
7570
04:40:20,160 --> 04:40:21,920
was that I wanted to make sure that as
7571
04:40:21,920 --> 04:40:23,200
many of you got the answers that you
7572
04:40:23,200 --> 04:40:24,798
needed, you got to see the AI tool in
7573
04:40:24,798 --> 04:40:27,120
action. Um I strongly would encourage
7574
04:40:27,120 --> 04:40:28,798
you to use the tool. We we're continuing
7575
04:40:28,798 --> 04:40:30,958
to invest um time and effort into
7576
04:40:30,958 --> 04:40:33,280
continuing to improve it. U ours has an
7577
04:40:33,280 --> 04:40:35,520
entire context layer. So um if you are
7578
04:40:35,520 --> 04:40:36,798
going to ask questions because this was
7579
04:40:36,798 --> 04:40:38,240
one of the things that came up. If you
7580
04:40:38,240 --> 04:40:39,520
have questions about like multiple
7581
04:40:39,520 --> 04:40:41,440
businesses, make sure to change out that
7582
04:40:41,440 --> 04:40:43,520
little personalized tab because that's a
7583
04:40:43,520 --> 04:40:46,160
context layer that basically uh is a
7584
04:40:46,160 --> 04:40:48,240
filter through which all of the answers
7585
04:40:48,240 --> 04:40:50,560
are given through. Um, which is why I
7586
04:40:50,560 --> 04:40:52,878
like RAI the most because like I want to
7587
04:40:52,878 --> 04:40:54,080
I don't want to always keep having to
7588
04:40:54,080 --> 04:40:56,000
upload stuff um in order to get the
7589
04:40:56,000 --> 04:40:58,080
answers that I need. Um, but beyond
7590
04:40:58,080 --> 04:41:01,120
that, uh, I think I'll I'll I'll state
7591
04:41:01,120 --> 04:41:04,240
this, um, one more time
7592
04:41:04,240 --> 04:41:07,280
because we have whatever 20 21 hours or
7593
04:41:07,280 --> 04:41:08,878
20 hours left or something like that.
7594
04:41:08,878 --> 04:41:12,320
Um, but, uh, we're doing direct access
7595
04:41:12,320 --> 04:41:15,200
to me. Um,
7596
04:41:15,200 --> 04:41:17,360
plus the director team, which we've got
7597
04:41:17,360 --> 04:41:19,040
my head of sales, two heads of
7598
04:41:19,040 --> 04:41:22,718
marketing, um, two strategy, business
7599
04:41:22,718 --> 04:41:25,360
offer people, we have wealth, uh, we
7600
04:41:25,360 --> 04:41:27,760
have recruiting, uh, and then little old
7601
04:41:27,760 --> 04:41:30,080
me is there, um, as well to help answer
7602
04:41:30,080 --> 04:41:32,000
the questions that you guys have. Um,
7603
04:41:32,000 --> 04:41:33,600
and so you guys have six months of that
7604
04:41:33,600 --> 04:41:36,080
inside of a school group,
7605
04:41:36,080 --> 04:41:37,520
which if you're like, man, I really
7606
04:41:37,520 --> 04:41:39,680
would like more of this, um, then or I
7607
04:41:39,680 --> 04:41:41,440
have more questions or whatever, like go
7608
04:41:41,440 --> 04:41:44,000
there. Um, on top of that, we have the
7609
04:41:44,000 --> 04:41:45,280
six workshops that we're gonna do. So,
7610
04:41:45,280 --> 04:41:46,718
we've got the leads workshops where
7611
04:41:46,718 --> 04:41:48,400
we're going to dive into a lot more
7612
04:41:48,400 --> 04:41:50,160
detail tactically just because hopefully
7613
04:41:50,160 --> 04:41:51,920
like you guys are like talk slower. Like
7614
04:41:51,920 --> 04:41:53,200
I'm trying to talk as fast as I can as I
7615
04:41:53,200 --> 04:41:54,240
want to cover as much stuff as I
7616
04:41:54,240 --> 04:41:57,200
possibly can. Um, but this whole whole
7617
04:41:57,200 --> 04:41:58,718
workshop was designed to do one thing
7618
04:41:58,718 --> 04:42:01,280
which is did you get the constraint? Did
7619
04:42:01,280 --> 04:42:03,040
we use the most leverage by collecting
7620
04:42:03,040 --> 04:42:04,718
the correct playbook? And do you
7621
04:42:04,718 --> 04:42:06,718
understand how to use the tools like the
7622
04:42:06,718 --> 04:42:08,400
AI in order to personalize the
7623
04:42:08,400 --> 04:42:10,080
responses? And hopefully you feel like I
7624
04:42:10,080 --> 04:42:12,160
I delivered on that today. Obviously,
7625
04:42:12,160 --> 04:42:14,320
there's a ton more that's like cover
7626
04:42:14,320 --> 04:42:16,560
business in four hours, right? Um we've
7627
04:42:16,560 --> 04:42:19,200
got the sales workshop. We've got the uh
7628
04:42:19,200 --> 04:42:22,160
LTV workshop. We've got the uh we've got
7629
04:42:22,160 --> 04:42:24,878
the profit workshop.
7630
04:42:24,878 --> 04:42:27,120
We have uh people ops and AI. So, those
7631
04:42:27,120 --> 04:42:28,638
you have like recruiting issues,
7632
04:42:28,638 --> 04:42:30,320
management, leadership issues because
7633
04:42:30,320 --> 04:42:32,160
you're you're having difficulty scaling.
7634
04:42:32,160 --> 04:42:34,080
Um and then we have wealth uh with
7635
04:42:34,080 --> 04:42:36,560
Sherrod. And so, uh we'll show you all
7636
04:42:36,560 --> 04:42:38,400
the tax strategies that we're using um
7637
04:42:38,400 --> 04:42:39,760
that work within a service-based
7638
04:42:39,760 --> 04:42:41,600
business. uh if you have a you know
7639
04:42:41,600 --> 04:42:43,040
significant business you heard Kevin at
7640
04:42:43,040 --> 04:42:44,160
the beginning there's really awesome
7641
04:42:44,160 --> 04:42:46,798
businesses in there um there all we also
7642
04:42:46,798 --> 04:42:48,080
have a map so you can actually place
7643
04:42:48,080 --> 04:42:49,280
yourself on the map which I think is
7644
04:42:49,280 --> 04:42:51,360
really sweet and so uh you can get all
7645
04:42:51,360 --> 04:42:54,920
this stuff at scaleacq.com
7646
04:42:57,200 --> 04:43:00,080
um because otherwise uh this is our our
7647
04:43:00,080 --> 04:43:02,240
last live workshop um I appreciate you
7648
04:43:02,240 --> 04:43:05,120
guys you guys rock um I'm super grateful
7649
04:43:05,120 --> 04:43:06,718
um for you guys donating the books it
7650
04:43:06,718 --> 04:43:09,840
means the world to me um it really
7651
04:43:09,840 --> 04:43:12,080
because I hope hopefully believe that.
7652
04:43:12,080 --> 04:43:13,760
Um
7653
04:43:13,760 --> 04:43:16,480
I would say measure how much it means to
7654
04:43:16,480 --> 04:43:18,798
me by the work that I did to put this
7655
04:43:18,798 --> 04:43:20,798
together. It's probably the easiest way
7656
04:43:20,798 --> 04:43:23,280
that I can say it. Um we always really
7657
04:43:23,280 --> 04:43:24,400
want to overd deliver. We really want to
7658
04:43:24,400 --> 04:43:26,718
blow you guys away. It's hard to it's
7659
04:43:26,718 --> 04:43:28,480
hard to explain what like doing two
7660
04:43:28,480 --> 04:43:29,840
years of those types of consultations
7661
04:43:29,840 --> 04:43:31,040
that I just did over the phone over the
7662
04:43:31,040 --> 04:43:33,200
last like 30 or 40 minutes. Um, I did
7663
04:43:33,200 --> 04:43:34,480
that for the last two years to train
7664
04:43:34,480 --> 04:43:36,080
this one AI so I could help as many
7665
04:43:36,080 --> 04:43:38,718
businesses as possible um as an
7666
04:43:38,718 --> 04:43:40,240
incentive to get people to donate as
7667
04:43:40,240 --> 04:43:42,400
many books as I can uh as they could so
7668
04:43:42,400 --> 04:43:44,320
that like I really do mean what I say
7669
04:43:44,320 --> 04:43:45,440
what I really would like to get the
7670
04:43:45,440 --> 04:43:46,878
books in the hands of every entrepreneur
7671
04:43:46,878 --> 04:43:48,240
in America and it's just because like
7672
04:43:48,240 --> 04:43:50,878
books is what changed my life. Um I read
7673
04:43:50,878 --> 04:43:52,240
every book that I possibly could get my
7674
04:43:52,240 --> 04:43:55,600
hands on and like that's that's that's
7675
04:43:55,600 --> 04:43:57,040
what like that's what changed my life
7676
04:43:57,040 --> 04:43:58,718
and so I just want to say thank you to
7677
04:43:58,718 --> 04:44:01,200
you guys. Um, if you want to party with
7678
04:44:01,200 --> 04:44:05,200
us for six more months, um, let's see if
7679
04:44:05,200 --> 04:44:07,360
I have the thing up here. Maybe I'll go
7680
04:44:07,360 --> 04:44:09,920
back one. There you go. Um, it's not 15
7681
04:44:09,920 --> 04:44:11,600
minutes, but that's the that's the
7682
04:44:11,600 --> 04:44:13,520
stuff. Um, you guys can go there,
7683
04:44:13,520 --> 04:44:15,920
scale.acq.com. If not, totally cool.
7684
04:44:15,920 --> 04:44:16,958
Like, really, I really mean that.
7685
04:44:16,958 --> 04:44:19,280
Totally fine. Um, but if you're like, I
7686
04:44:19,280 --> 04:44:20,320
have questions that I really wish I
7687
04:44:20,320 --> 04:44:21,200
could work with them for a little
7688
04:44:21,200 --> 04:44:23,520
longer. Um, then that's what we made it
7689
04:44:23,520 --> 04:44:25,520
for. And so, I think it's it's 3,000
7690
04:44:25,520 --> 04:44:27,040
bucks today and then I think it's five
7691
04:44:27,040 --> 04:44:28,638
installments after that. sets 15,000
7692
04:44:28,638 --> 04:44:30,958
after that. Um, and uh, one of the
7693
04:44:30,958 --> 04:44:32,240
reasons I structured it that way also is
7694
04:44:32,240 --> 04:44:33,280
that like I don't like things to go on
7695
04:44:33,280 --> 04:44:34,638
forever. So, this isn't like a forever
7696
04:44:34,638 --> 04:44:37,680
membership. It's a six months set you up
7697
04:44:37,680 --> 04:44:40,240
for, you know, Q1 crush 2026. And the
7698
04:44:40,240 --> 04:44:44,480
idea is if we can install
7699
04:44:44,480 --> 04:44:46,958
because these parts, leads and sales are
7700
04:44:46,958 --> 04:44:49,200
additive. So, as long as you don't have
7701
04:44:49,200 --> 04:44:51,360
a supply constraint, if you just get
7702
04:44:51,360 --> 04:44:53,200
more leads, you make more. If you
7703
04:44:53,200 --> 04:44:54,400
convert more of those leads, you make
7704
04:44:54,400 --> 04:44:55,920
more. If you make more per customer, you
7705
04:44:55,920 --> 04:44:57,040
make more. If you improve your cash flow
7706
04:44:57,040 --> 04:44:58,798
position, you make more, right? All of
7707
04:44:58,798 --> 04:45:00,638
these things, like installing even
7708
04:45:00,638 --> 04:45:01,920
portions of each of these things into
7709
04:45:01,920 --> 04:45:03,440
the business can make a huge material
7710
04:45:03,440 --> 04:45:05,040
change. Um, and then if you have
7711
04:45:05,040 --> 04:45:06,400
questions along the way, that's why we
7712
04:45:06,400 --> 04:45:07,360
put the people who actually like
7713
04:45:07,360 --> 04:45:08,560
collaborated with me to put these
7714
04:45:08,560 --> 04:45:10,798
playbooks together uh in the group. And
7715
04:45:10,798 --> 04:45:13,840
so um you can go to scale.acq.com.
7716
04:45:13,840 --> 04:45:15,600
Appreciate you guys. It's been my
7717
04:45:15,600 --> 04:45:18,080
absolute honor um serving you. I think
7718
04:45:18,080 --> 04:45:20,400
we'll leave this up. I guess we don't
7719
04:45:20,400 --> 04:45:22,320
have to leave it up. I just You guys
7720
04:45:22,320 --> 04:45:23,680
know what the link is. You guys know
7721
04:45:23,680 --> 04:45:25,840
what the link is. Um, you guys are
7722
04:45:25,840 --> 04:45:28,320
amazing. Thank you again. And um, let me
7723
04:45:28,320 --> 04:45:30,878
leave I'll read my last slide.
7724
04:45:30,878 --> 04:45:33,840
See what my last slide is.
7725
04:45:33,840 --> 04:45:36,480
I already did the VSSL framework. Okay.
7726
04:45:36,480 --> 04:45:37,760
No, this was my last slide. Here we go.
7727
04:45:37,760 --> 04:45:40,240
Final reminders. So,
7728
04:45:40,240 --> 04:45:43,280
strategy is dictated by how you choose
7729
04:45:43,280 --> 04:45:46,000
to allocate resources. Your time, your
7730
04:45:46,000 --> 04:45:48,798
money, your effort are the raw resources
7731
04:45:48,798 --> 04:45:52,160
that you have. putting them towards
7732
04:45:52,160 --> 04:45:53,440
the thing that is going to get you the
7733
04:45:53,440 --> 04:45:54,730
highest return
7734
04:45:54,730 --> 04:45:57,860
[Applause]
7735
04:46:01,630 --> 04:46:04,160
[Applause]
7736
04:46:04,160 --> 04:46:07,120
and I shouldn't write so much. It's like
7737
04:46:07,120 --> 04:46:08,958
write write faster talk slower or
7738
04:46:08,958 --> 04:46:11,680
something like that. Um, and if you're
7739
04:46:11,680 --> 04:46:14,160
unsure of which
7740
04:46:14,160 --> 04:46:16,480
which constraint you have, just walk
7741
04:46:16,480 --> 04:46:18,480
through the same process of like, can I
7742
04:46:18,480 --> 04:46:21,920
do more? Do I have the data? Does the
7743
04:46:21,920 --> 04:46:23,840
market work?
7744
04:46:23,840 --> 04:46:28,280
Will this model get me to where I am?
7745
04:46:28,400 --> 04:46:29,840
If I can't afford it, is because my
7746
04:46:29,840 --> 04:46:31,120
leads are too expensive, which means I
7747
04:46:31,120 --> 04:46:33,120
need better marketing or more marketing.
7748
04:46:33,120 --> 04:46:34,320
Is it because we're not converting
7749
04:46:34,320 --> 04:46:35,600
enough people, which is going to be all
7750
04:46:35,600 --> 04:46:37,600
the sales system? is because we need to
7751
04:46:37,600 --> 04:46:39,360
increase LTV per customer because we
7752
04:46:39,360 --> 04:46:41,280
need to make them worth more or we need
7753
04:46:41,280 --> 04:46:42,958
to accelerate profit in the business
7754
04:46:42,958 --> 04:46:44,000
which is what the whole pricing
7755
04:46:44,000 --> 04:46:46,240
playbooks are for. Once you solve that
7756
04:46:46,240 --> 04:46:48,160
then you have the manpower issues and
7757
04:46:48,160 --> 04:46:50,878
you repeat this entire process from top
7758
04:46:50,878 --> 04:46:53,040
down
7759
04:46:53,040 --> 04:46:55,120
as it relates to manpower. And so
7760
04:46:55,120 --> 04:46:57,360
hopefully this framework um this has
7761
04:46:57,360 --> 04:46:58,878
served me really well. This is how we've
7762
04:46:58,878 --> 04:47:00,160
been able to debottle neck so many
7763
04:47:00,160 --> 04:47:02,320
businesses um and just get ruthless
7764
04:47:02,320 --> 04:47:03,760
about this. Now kind of like the
7765
04:47:03,760 --> 04:47:04,878
insurance one that I did at the end
7766
04:47:04,878 --> 04:47:06,718
there. Sometimes it just requires more
7767
04:47:06,718 --> 04:47:08,638
work, right? Like I would like if I were
7768
04:47:08,638 --> 04:47:10,080
doing a true consultation rather than
7769
04:47:10,080 --> 04:47:11,680
like a quick, you know, 10-minute phone
7770
04:47:11,680 --> 04:47:13,120
call, it'd be like, "All right, let's
7771
04:47:13,120 --> 04:47:14,718
look at all the other LTVs across all
7772
04:47:14,718 --> 04:47:16,240
the other health categories. Is there
7773
04:47:16,240 --> 04:47:17,760
another way that we could sell different
7774
04:47:17,760 --> 04:47:19,200
products to the exact customer base? Is
7775
04:47:19,200 --> 04:47:20,240
there a different customer base that we
7776
04:47:20,240 --> 04:47:22,160
can attract via messaging and lead
7777
04:47:22,160 --> 04:47:23,840
magnets?" because I don't think I'll bet
7778
04:47:23,840 --> 04:47:25,680
you dollars to donuts that there's a
7779
04:47:25,680 --> 04:47:27,200
lead magnet issue there where we could
7780
04:47:27,200 --> 04:47:30,878
attract a much higher status customer
7781
04:47:30,878 --> 04:47:34,000
who's able to pay significantly more um
7782
04:47:34,000 --> 04:47:37,600
to make a bigger arbitrage there. Um and
7783
04:47:37,600 --> 04:47:39,840
so this is what I think about um as I'm
7784
04:47:39,840 --> 04:47:41,920
trying to like dissect and and and
7785
04:47:41,920 --> 04:47:44,638
debottleneck businesses. Um and
7786
04:47:44,638 --> 04:47:45,680
ultimately we want to build something
7787
04:47:45,680 --> 04:47:47,360
that compounds, right? That's that's the
7788
04:47:47,360 --> 04:47:48,638
whole goal. So whether that compounds
7789
04:47:48,638 --> 04:47:50,400
via reputation, via customers that never
7790
04:47:50,400 --> 04:47:52,160
leave, via sales network that continues
7791
04:47:52,160 --> 04:47:53,280
to sell for you, they keep recruiting
7792
04:47:53,280 --> 04:47:55,200
and activating. Uh where they have some
7793
04:47:55,200 --> 04:47:56,958
sort of network effect overall that
7794
04:47:56,958 --> 04:47:58,080
every person who gets added to the
7795
04:47:58,080 --> 04:47:59,200
network increases the value of the
7796
04:47:59,200 --> 04:48:01,440
network. Um all of those are things that
7797
04:48:01,440 --> 04:48:02,798
compound with time. And we want to have
7798
04:48:02,798 --> 04:48:04,000
something like that because otherwise
7799
04:48:04,000 --> 04:48:05,600
your cost to our customers will only go
7800
04:48:05,600 --> 04:48:08,080
one way, which is up. And so you have to
7801
04:48:08,080 --> 04:48:10,400
have an equal and opposing force like
7802
04:48:10,400 --> 04:48:12,080
your reputation, like your brand that
7803
04:48:12,080 --> 04:48:13,360
can bring it down over time as you
7804
04:48:13,360 --> 04:48:14,878
expand to colder and colder markets that
7805
04:48:14,878 --> 04:48:17,280
warms it up for you. So um appreciate
7806
04:48:17,280 --> 04:48:20,560
you all and oh uh all of the uh six
7807
04:48:20,560 --> 04:48:23,040
workshops these guys
7808
04:48:23,040 --> 04:48:24,878
all of these uh the group is just for
7809
04:48:24,878 --> 04:48:27,840
owners but you can bring um plus ones to
7810
04:48:27,840 --> 04:48:29,120
those. So I think it's actually like
7811
04:48:29,120 --> 04:48:30,878
pretty sweet. Uh so if you have teams
7812
04:48:30,878 --> 04:48:32,000
that are going to be implementing stuff
7813
04:48:32,000 --> 04:48:33,840
for like leads or you've got like sales
7814
04:48:33,840 --> 04:48:35,120
managers are going to do the sales stuff
7815
04:48:35,120 --> 04:48:36,718
or somebody who's in the service side or
7816
04:48:36,718 --> 04:48:37,760
customer success who's going to do
7817
04:48:37,760 --> 04:48:38,958
delivery, you can bring plus ones to
7818
04:48:38,958 --> 04:48:40,480
those. I keep the group just for owners
7819
04:48:40,480 --> 04:48:42,080
because I think it's keeps it higher
7820
04:48:42,080 --> 04:48:44,718
level and it's just better overall. So,
7821
04:48:44,718 --> 04:48:47,760
um, yeah, you guys, you guys rock. So,
7822
04:48:47,760 --> 04:48:49,600
thank you all. Uh, I think you have 20
7823
04:48:49,600 --> 04:48:52,080
whatever 21 hours. scale.acq.com
7824
04:48:52,080 --> 04:48:54,798
and, um,
7825
04:48:54,798 --> 04:48:56,958
let's scale.
7826
04:48:56,958 --> 04:49:00,600
Appreciate you guys.
7827
04:49:02,000 --> 04:49:04,080
I needed like a really elegant sign off.
7828
04:49:04,080 --> 04:49:05,840
Um,
7829
04:49:05,840 --> 04:49:08,638
send nice DMs.
7830
04:49:08,638 --> 04:49:10,160
Uh, when you use the stuff, let me know.
7831
04:49:10,160 --> 04:49:12,560
It actually like really fills me up. Um,
7832
04:49:12,560 --> 04:49:14,080
it's what really encourages me like I
7833
04:49:14,080 --> 04:49:17,120
get a huge boost of energy from um, like
7834
04:49:17,120 --> 04:49:18,718
anybody who's been a developer that I
7835
04:49:18,718 --> 04:49:19,840
know who's a friend of mine has said
7836
04:49:19,840 --> 04:49:21,840
this is like every developer just wants
7837
04:49:21,840 --> 04:49:23,200
one thing which is that their technology
7838
04:49:23,200 --> 04:49:25,360
gets used. And I would say that I I fall
7839
04:49:25,360 --> 04:49:27,040
in the same category of like I write
7840
04:49:27,040 --> 04:49:28,638
these books, I make this content because
7841
04:49:28,638 --> 04:49:31,120
I I just want it to get used. Um, and it
7842
04:49:31,120 --> 04:49:32,480
makes it feel like all the pain and
7843
04:49:32,480 --> 04:49:33,600
suffering that it took me to figure it
7844
04:49:33,600 --> 04:49:35,440
out is just like a little bit more worth
7845
04:49:35,440 --> 04:49:37,760
it. Um, and so please let me know. It
7846
04:49:37,760 --> 04:49:39,760
means the it means the world to me. So
7847
04:49:39,760 --> 04:49:41,360
rock and roll. Scale your businesses.
7848
04:49:41,360 --> 04:49:43,680
Save the world.
7849
04:49:43,680 --> 04:49:46,080
I'll see569151
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