All language subtitles for [English (auto-generated)] Alex Hormozi - $100M Money Models Course [DownSub.com]

$100 million Money Models, the training

on how to make money. We are going to be

covering all of this stuff in the next

few hours together. You'll also notice

that some of these things correspond

with the chapters of the book, $100

million Money Models. You'll also know

that some of these things are not

included in the book, and that is

because some of these things are extras.

They are Easter eggs. They're my gift to

you for actually making it over to the

internet where you can watch with your

eyeballs and listen with your earballs.

I will have things that are additional

to the book chapters that go in a little

bit more depth because with a book you

have to be super super constrained in

terms of attention. With videos they can

be a little bit more engaging and so I

cover a few more examples, few different

examples and add in some chapters that I

ended up cutting out in the final

version. So enjoy. With that being said,

let's get into context. Context.

Context. The purpose. So why does this

book exist? The $100 million offers

books answered the first question. What

do I sell? Because if you have nothing

to sell, there's nothing you can do.

Now, from there, once you have something

to sell, you need somebody to sell it to

because you still can't get money unless

you have a person who gives you that

money. Great. $100 million leads answer

that question, which is how to get

strangers to want to buy your stuff,

which the subtitle of that is

advertising and the core four and lead

getters and all the things we go into in

that book. So, why does money models

exist? Well, money models exist between

both of these books, which is how to

monetize. If you have something to sell

and then you have people to sell it to,

then you have the okay, well, how do I

get them to give me money? How do I get

them to buy more stuff from me? How do I

actually make a profit from this? And

how do I profitably advertise in order

to let even more people know? All of

those questions were answered in this

book. And to give you a little bit of

backstory on this really quickly, I

wrote this book first. And it was

because this was my cookbook for making

money. This was all the tricks that I

knew about making a business make more

money. But then I was like, "Okay, I

can't wait to release this thing." And

then I realized, "Oh, shoot. Unless they

know how to advertise, they're not going

to be able to use any of the stuff in

this book." So I was like, "Okay, I got

to start writing this book on leads and

advertising." And as I was writing this

book on leads and advertising, I was

like, "Oh crap, if they don't have

anything to advertise, they're not going

to be able to use this book." So then I

had to write leads. So I ended up having

to write two books in order to get to

this third book in the trilogy, which

I'm excited to share with you now. So

why do I write these books? This is a

little Isaac Newton. If I have seen

further than others, it is by standing

upon the shoulders of giants. And so my

goal is to pass as much on to you as I

possibly can and hopefully make you lots

and lots of money. And maybe someday you

hit me up and say, "Hey, can you invest

in my company?" And I'd be happy to do

that. Otherwise, just make money. I'm

going to die. So are you. And at least

we can share some stuff. All right. Big

picture. We're all here because other

people in the past documented what they

did for generations. We may not remember

the names, but we do pass on the

learnings. And so that's kind of my goal

here. And so education is the greatest

legacy of all. That's why I make all the

stuff that I make. All right? And so

consider the alternative. You live a

life amassing education and then you

die. And then everyone has to relearn

what you learned. Everyone suffers what

you suffered. What a waste of a life.

And so I do this while I grow because I

don't want to forget the little details

at the end of my life because some

people are like, "Oh, I'm going to

document at the end." It's like, "Well,

you're going to forget all the details

by then." And so I try and make as much

stuff as I can as I go up. Breadcrumbs,

if you will. Simple skills are easy to

teach. Complex skills often include some

type of mentor or apprentice

relationship for years to transfer

knowledge. So, think about like

dealmaking, surgery, scientists. Those

are things that usually are complex

skills, but it's more so that there's

just bundled terms that have many skills

underneath of them. And so, it's more

that people have a harder time

quantifying it uh than it is that they

are complex versus simple. But the thing

is is that there's not very many

apprenticeships for business. This is

the problem, right? And so my books and

my trainings are my attempt to mimic

apprenticeship at scale. So here's the

problem this book solves. Most

advertising isn't profitable. Aka people

lose money getting customers. And so let

me explain how this works. Let's say you

make $1,000 in profit per customer over

their lifetime. So this would be a

lifetime gross profit of a,000 bucks.

And it cost you $100 to get a customer.

That's CAC. Cost to acquire a customer.

CAC. So LTGP is a,000. CAC's 100 LGBT

CAC which is a ratio is 10 to1 which

means for every dollar you put in you

get $10 back out now you should make

that trade every time.

But what if you make the $1,000 in a

bulk payment 12 months later? Well

shoot. So that means you put $100 out

today and then you do all this work and

then you get paid a year later.

Well, you should still make the trade

but you're going to have a lot of cash

flow problems, right? So you have your

negative 100 day one or month zero and

then you're still losing money all this

time delivering to the customer and then

finally they pay at the end. It could be

equally said that let's say if if we had

a 10-year LTV and someone paid you $100

a year for you know $8.33 a month for

the next 10 years. You should totally

make that deal. You're still not going

to have any money even be profitable

until month 13. You would either have to

burn your own savings which sucks. You'd

have to burn other people's savings

through debt and equity, meaning you

sell portions of your business in order

to get more cash. You do fundraising,

right? Or you raise some sort of loan

from a bank so that they can basically

fund your business while you wait to get

this money back from customers, which

sucks and is hard. And I get it because

I've been there. But the good news is

there is a better way, which is door

three. Uh make more than $100 in profit

in the first 30 days for this particular

instance. And so this book is door

three. So if the problem is that most

advertising is profitable, the solution

is something I call client finance

acquisition or customer finance

acquisition. CFA is sometimes what I

refer to it as. And the point of that is

to make money faster. This enters the

element of speed into the conversation.

Not just how much do you spend, how much

you make back, but how fast you make it

back. Because how fast you make it back

can be the thing that unlocks all the

growth in your business or tanks your

business overnight.

So customer finance acquisition or

client finance acquisition CFA is a

process in which gross profit generated

from a single client within the first 30

days is greater than cost of acquiring

that customer. So where gross profit the

extra cash that you make from somebody

coming into your business from one

customer in the first month is more than

the cost of getting that customer. Now

if you're listening or following along

from the book, this isn't in the book.

And the reason for that is that every

single of my proof readers, as soon as I

start getting into math, they're like, I

don't know if people get sections from

the book, but they are here because it's

important.

So, the purpose of this is to accomplish

customer finance acquisition. So, here's

a quick story for you. So, let me tell

you how this all started. So, this is me

when I signed my first lease at $5,000 a

month. That's me not knowing what I was

doing. And this is where I slept. And

that's my really fancy equipment that I

was able to afford.

Um, and so I heard about this thing

called Facebook Marketing. and things

started going well. This is actually a

picture I sent to my dad after the first

week of uh having my gym to show how

many memberships I actually was very

proud of this. Uh which is kind of silly

now that I look at it's like I had like

whatever 18 memberships, but I was super

proud of this. I I'd hustled all day to

get that. And so the thing is is that

things started to grow and so that was

good. This was our my one year. There's

my little my little dinky streamers

because that's what I could afford at

the time. Um but things were going well.

Like all my clients showed up which was

kind of sweet. Um and we grew over to

nine plus employees. thought that was

cool. Um, and I started to feel like I

had it figured out. I was like, I'm a

businessman. And then, of course,

Facebook slaps me. And they 5x my cost

per lead. And so, what was once a money,

you know, torrential hurricane or

downpour turned into the Sahara Desert

or whatever desert this is. Uh, and all

I could think about was, you know,

having to call my dad say, "I'm going to

be I'm a failure. This is actually

didn't work. I didn't really know what I

was doing." And that would have sucked,

right? And so, all I could think about

was how can I afford to pay for more

leads, right? like the business worked,

everything was fine. So, as my cost per

lead went up, and so I needed something

that was immediate cash upfront so I

could pay off my credit card bill for

the ad spend without going into debt.

And so, I want to highlight one key

point right now is that two types of

business owners about the things that

are out of their control. If you're if

CPMs, the cost per impression goes up on

a platform, you can either afford the

impressions or you can't. Now, you can

beg, borrow, and steal and wish that the

impression cost goes down, but it's not

going to change anything, right? Of

course, you can make better ads, you

make better hooks, things like that. But

fundamentally, my lead cost went up. So,

you can either go out of business or you

can try and figure out a way to make

more money per customer. And so, that's

what we did. All right? And so, this is

what happened. So, I'm traveling home

for the holidays and I've got this

layover somewhere and I see a guy from

college in the same waiting area and I

was like, "Oh, no shoot." I was like,

"Hey, what's up, dude?" Uh, so we start

chatting and it turned out that he

started a supplement business. I was

like, "Oh, okay. Kind of interesting."

And so I was like, "Hey, so how do you

make how much do you make a month from

your supplement company?" He's like,

"Well, I got two locations. One does

about 80,000 a month. The other is

130,000 a month." And I was like,

"A month?" It's like selling

supplements.

And uh guy can make an extra 80,000 a

month selling supplement without any

members. I got a gym. He has no gym.

I've got a gym with members. He doesn't

have members. I was like, I can

definitely sell 20 grand a month with my

members just to cover my costs. And so I

put an order for supplements to resell

at my gym. And at first, of course, no

one bought until one day I was able to

make a sale. And then from that day

going forward, I began selling $200 per

person in supplements. So about a

hundred bucks in profit. And that $100

offset my cost of getting a new member

in the door. And so I used to have to

spend money to get the person in the

door and then sell them stuff and then

wait to get, you know, recruit

membership costs, etc. But here with the

supplements, I could sell them

supplements up front and I made my cost

to get the customer back. All right? And

so I was able to start spending way more

money on ads again because it paid for

my advertising. And so it made all the

new members and the cash they paid free,

which was sweet. And so the moral is

that I made another offer. And when I

made another offer, I made more money.

And so the outcome was I was able to get

paid to get new customers. And I'll say

that again. I was able to get paid to

get new customers. So most people pay to

get customers. I was getting paid to

grow. And so my gyms grew. And so over

time, I continued to get better and

better at recombining the way I charged

and structured my client journey to make

more money than my competitors. And so I

went from making like four to five to

one to making 31 and up. So like every

dollar I put in, I would get $30, $40

back on my marketing. And I'll show you

how I did it. All right. So I eventually

took that multi-step money model and

licensed everything about it to 5,000

plus locations. And that's what became

Gym Launch. And the average return on ad

spend in the first 30 days across all

those gyms. All right, not including

memberships to this day is four to one.

And that's upfront. That doesn't include

membership. So that's not a true LTV to

cack ratio. I'm saying that's the

upfront cash they collect in the first

30 days from customers. They still have

the whole membership on the back.

And so that's what I'm going to break

down for you in this training. All

right, which is exactly how to do that

at any business, which is build a money

model that allows you to never use your

own money to get customers again. Right?

That means that you're no longer

constrained by how much capital you

have, who you know, what your bank

lending terms are. It's just about what

you can design in terms of how you build

your money model so that you can use

other people's money, not banks, but

your other customers money to finance

your growth.

So that was my quick story. All right.

And we have given you context.

Now we begin how business

How businesses make money. How

businesses make money. Starting with

number one, LTP has to be greater than

CAC. Duh. But let's get into it. Oh,

look. I did write this. Duh.

So, you've got to make more money over

the lifespan of the customer than it

cost you to get them, obviously, because

otherwise you're spending money to get

people who give you less money than it

cost you to get them, which is not a

good recipe for making money. So, cool

thing number one, I'm glad we covered

that. Number two, let me give you this a

real example to make this make this real

for you. So, this is a real thing for

me. So, I had a meals company for a year

or two. Um, and foreshadowing, things

went wrong. So, we had a $100 CAC, which

means it cost me $100 to get a customer.

And we had $500 of lifetime revenue. I'm

highlighting this lifetime revenue. And

I was like, and so my team comes to me

and says, "Hey, we're going to be rich.

Every $100 we put in, we get $500 back.

Let's spend more money." And I was like,

"Hold on one second." And so, not so

fast. I was like, "Okay, well, what are

our gross margins on these meals?" And

so the gross margins were 20%. So, and

our lifetime revenue was 165 times

three, meaning people would pay $1665 a

week for the meals and they would pay

for three weeks. Okay. So, the 30-day

gross profit was uh was um sorry, this

was per month, excuse me. Uh so 165 time

20% is $33.

So now my lifetime gross profit was 500

times 20% was $100.

So wait a second. So you're saying I'm

spending 100 making $33 back in the

first month and spending 100 and making

$100 back lifetime, but then we have

like all these humans that we have to do

all this other stuff with as well. Well,

that's not going to work very well. And

so it didn't. And so I told them to not

do that. It's also why I'm not in the

meals business anymore. Um, now if

you're like, "Hey, why didn't you work

to figure it out?" It was the fourth

business I started while I was still CEO

and Leila and I had one of these

conversations. She was like pick and I

was like legit. And so I ended up

shutting that out because I had a

co-acker so it wasn't like I had a huge

amount of um staff or something that I

had to lay off or anything like that. I

was repurposing my supplement company

staff to deal with all the meal stuff.

Here's a fun fact for you. uh 80% of our

customer complaints came from meals, 20%

from supplements, and 95% of my profits

came from supplements, and 5% came from

meals. And I was like, I think if I were

giving me advice, I would advise me to

stop doing this. And so I did. So, let

me give you some benchmarks, though, so

you have an idea because you're like,

"Okay, got it." So, LTB, LT, let's just

say GP, not PG. So, it's not a PG-13

movie. Lifetime gross profit to CAC

ratio should be over 3 to1. Which means

you should be able to make more than

three times what it cost you to get a

customer in gross profit, not revenue,

gross profit back to you as a business

owner. All right? At minimum in order to

have a profitable business at minimum.

This is not like that's the goal. This

is the by all means if you're below

this, you're absolutely screwed at

three. You're still not like in great,

you know, in a great position.

Ideally, it's much higher. Okay, here's

the example. Gone better. So, in order

for this CAC to work for this business,

I would have to make $1,500,

not $500 in lifetime gross profit in

order for this to make sense. So, I had

to be way higher in order for this to

work, and it wasn't. Okay, so that's

just to give you an idea of what kind of

adjustments that I would have to make in

order to make that business work, which

I was like, I don't know if I can

conceivably do that, which ultimately

led to me deciding not to. Which then

leads us to the only three numbers that

matters. And this is what you need to

write down. This is what you need to

think with. All right. Now, this is not

in the book. And you're like, "Wait a

second. How are you not talking about

this in the book?" It's because no one

can do math. So, you're here and you can

do math. So, if you're looking closely,

you may notice that there's three

numbers that make the biggest difference

here. All right. So, number one is CAC,

which is the cost of our customer. The

second is the fact that I talk about

this 30-day thing. Like, why am I

talking about 30 days? And the third is

gross profit

which those three metrics triangulate

acquisition meaning getting new

customers. CAC is how much it costs. GP

is to make a profit and short PPD means

payback period. How long it takes you to

make that money back. How long it takes

you to make your cost back.

So ideally you get have low CAC which

means you have cheap customers. You have

high GP who pay you lots of money and

then short payback period which means

really fast. outcome is more money

faster.

All right? And that's pretty much the

training in this book. Like that's what

this is all about. So that's that's what

we accomplish. The rest of this is all

about how. Okay? So boom. Those are the

three numbers that matter. And let's get

into the first one a little bit more

detail because some of you guys are like

CAC sounds like something my cat threw

up. Understood. That's the next one.

So cost to acquire a customer aka CAC.

Let's dive in. Cost to acquire a

customer again. So let's start with

definition. All right. Cost of acquiring

a customer. All the costs required to

sell a new customer. So that's the

advertising dollars, the payroll to a

media buyer, creative team, software

that you that the team uses to make

advertising and sales commissions,

salaries, the managers of those teams,

everything that it costs you. a lot of

people and if you want you can delineate

how much does it cost if you use paid

ads for example how much it cost us in

media spend versus how much is our

sometimes people call it fully loaded

CAC uh you can have both those numbers

separated out which I think is wise it's

kind of like media CAC versus fully

loaded uh but at the very basics now

that only really applies to paid media

if you acquire customers via outbound

payroll is going to be the majority of

your CAC if you use uh content to get

customers as your primary acquisition uh

method then it's just going to be the

cost of the payroll for the team that

does all the distribution of content and

editing and whatnot. But most companies,

especially if you're bigger, are going

to have multiple different versions of

that, which is why you just look at

everything and you look at how many

customers you got, you divide it out,

you're like, that's our cost per

customer. So, if we're trying to get

unlimited customers, we better be sure

we know what our own costs uh to make

sure that we can actually pay for it so

that we can get unlimited new customers.

All right, so let's calculate it

together. So, if you use outreach as

your primary way of getting customers,

then you use, let's say, $200 a month in

email software and you pay someone

$3,000 a month to do cold email

prospecting for you. Then emails become

appointments that turn into eight sales

per month. And so then you pay your

salesperson $100 per sale. So then

what's CAC? All right, this is like a

chat GPT prompt word problem, but

fundamentally this is what it looks like

for you as a business owner. So this is

how we this is how we calculate it. So,

the total cost for eight sales means

that you have a $3,000 emailer plus a

$200 software plus $800 bucks in

commissions, which is eight sales times

$100 equals 4 grand. All right. So, now

we divide that by the number of new

customers, which is $4,000 divided by

eight new customers equals 500 bucks per

sale. So, CAC is $500 in this outreach

example. So, let's say that you have a

content business. So, let's do this one.

So, you have to pay two people on your

media team that you pay $5,000 a month

each and they help you make, edit, and

distribute content across all platforms,

right? So, that content then turn into

inbound messages and then opt-ins on

your site and then those leads turn into

10 new customers and you pay $100 in

commission per sale. All right? So,

what's CAC? So, the reason I'm giving

you all those stats is so that you can

plug your own stats in and then figure

this out for yourself. So, if my media

payroll is 5K time 2, it's $10,000 a

month there. My commissions is 10 sales

times 100 is a th000. So all in I got 10

grand plus one grand is $11,000. So my

cost to acquire a customer, we'll say is

$11,000 divided by 10 customers equals

$1,100. So my CAC's $1,100 bucks. Now if

some of you are like, wait, I have sales

payroll in there too, then add it in. If

there's something that you don't have

here, cut it out. But fundamentally,

it's just all the money you spend to get

new customers divided by how many

customers you got. Cool. And I'll do one

quick one on paid ads. So you spend

$4,000 a month on a media buyer. You

spend 20 grand in buying ads, the actual

media itself. You spend a,000 bucks in

commissions per sale. So, this probably

a higher ticket sale. And you spend

$1,000 in software and tracking and

following up with leads that come in to

get 10 new customers. So, what's CAC?

So, media 4K, media spend 20K. Software

1K commissions 10 time 1 10,000. So, all

in we spend $35,000

divided by 10 customers. $3,500 per

customer is our CAC. That's how this

works.

By the way, one of the best ways to

improve any metric is to start measuring

it. So, how to improve it? In this whole

training, I talk about lots of different

things that cover and check off

different boxes here. But fundamentally,

if you had nothing else and you just

need to have a cheat sheet for this, it

would be you make better offers, that

gets you higher response rates. And if

you make better offers, you're also

going to convert a higher percentage

people. More people are going to take

the next step. Uh if you have better

offers in general, your CPMs are also

going to go down because people are

like, "Oh, this is a better offer.

Great." Uh you'll have cheaper labor. So

you won't necess this is not necessarily

related, but you could have cheaper

labor as a way to improve CAC. Like if

you had if you paid your sales guys less

or you paid the outbound team less,

whatever it is, like that could decrease

your CAC. Uh and you could have cheaper

software because that is also a cost.

But I would say if I had to measure

which of these is going to be the

biggest levers, it's going to be these

three. And I would I rarely go and dip

into these ones to be very candid with

you because you have such order of

magnitude changes you can make up here

that sometimes this stuff becomes

irrelevant. You lose morale for no real

no real benefit. All right. So we talk

about these two primarily for this book.

So the two most powerful words in

advertising are free and new. Use them.

And so for us if our objective is to

lower cap to the greatest degree

possible, we want to get as many sales

as possible for as little advertising

dollars as possible. And so that means

we want to convert the highest

percentage of our audience. And so note

that this is expanded content from the

book. All right, that I just think is

worth knowing. All right, so in $100

million leads, I talk about the value of

giving something away for free. Some

people don't want to do that, but let me

explain why I think it's probably a good

idea, especially if you're starting out.

All right, so Dan Arieli, again, none of

this is in the book. I had to cut this

out. So Dan, Ariel, who's a famous

behavioral economist, psychologist,

whatever, some science dude. All right.

So, he ran this thing called the Hershey

kiss test. And he would give away

Hershey kisses for free or he'd give

them away for a penny.

Want to guess the difference in take

rates on a college campus?

Nine times more people took the free

Hershey kiss versus the one penny kiss.

And he called this the penny gap. Nine

times more. For those of you who have

this like keying and hawing of like, I

don't want to give stuff away for free.

Okay. Don't

I think it dilutes my brand.

Okay.

There's a difference between giving

products away for free and giving value

away for free. And you have to

understand the difference. And I I have

always subscribed to the Chick-fil-A

model of this, which is either it's free

or it's full price, never discounted. So

if we mess something up, your sandwich

and your whole meal is on us. But

otherwise, it's premium and it's full

price. But it's one or the other. There

is no in between. And so if we want to

make, let's say, you're B2B, you make

content that's free. You make lead

magnets that are free. You provide

value. You make software tools. You give

them away for free. These are all things

if it's free versus a dollar, like

you're going to get shitty customers if

you do it like, okay,

cool. And for everyone who does want to

listen, let's keep going. So, we start

for free because if they don't want it,

it's because they one don't want it. And

so, that means you just change what

you're giving away or how you describe

it. So, you either the thing's wrong or

how you describe the thing is wrong. The

second reason somebody doesn't want your

free thing is because they don't believe

you. So, they it's too good to be true.

So, I'll give you a story about this.

So, there was a famous marketer who used

to used to on the side teach marketing

classes. He talked about believability.

And so he'd always run this test once a

year where he'd run an ad that says,

"Give me $100 and I will give you $1,000

back. Call this number." And no one

would call. And the main reason was no

one believed it. It was too good to be

true. Now, to be fair, people are dumber

now. And so maybe it would work now, but

when he would run these tests, we'd have

to something, you know, uh we'd have to

run something. Uh maybe. But like the

point hopefully remains. All right. The

next is I've seen this split test work

more times than I care for, but if you

advertise something that can help you

make an extra $5,000 a month versus

something that helps you make an extra

$500 a month, this one gets more optins.

And so you're like, how could a lower

result get more people to want it? And

it's because more people believe it.

Kind of interesting. The last reason

that people don't want your free thing

is because it's the wrong people seeing

it. So it's like if if I'm getting a

free gym membership that's offered in

Ohio, I'm never in Ohio, so I don't

really care. And so if you're selling,

you know, fur coats to, you know,

Arizonans in the summer, probably not

the right market. Even if it's like,

hey, it's free, it's like, I'm just

never going to wear it. Right? Now,

there's intrinsic value to fur coats,

but you get the idea. All right? And so

big three is that I like testing this

because if you give stuff away for free,

then you know that if people don't want

it, you change what it is or how you

describe it. They don't believe you can

give it to them or you show it to the

wrong people. All of these things are

great feedback for us. So, here are the

pros of free is that you will get more

leads for free and you will get lower

cost leads when you market or advertise

with free. Here are the cons of free is

that the volume can be a double-edged

sword if you're not prepared for it. So,

if you use some of the stuff in this

book and this training, you're going to

get way more leads than ever ever used

to. And so, what'll happen is you'll get

way more people reaching out. And if you

don't have the manpower or the time to

reach out to all these leads, it's

wasteful. And so what you then do is you

can add friction. So you give something

away for free and then add friction. And

so then you can add qualifications which

could be like types of questions, the

number of steps in a process. The

targeting you do is also another form of

friction. You can force them to consume

stuff prior to taking another step. You

can increase ad length. These are all

things that you can do to increase

friction. All right? So if you're

looking at this and you're like writing

this like these are the steps that you

can do to add friction to any

advertising process. And so for me, I

don't want to make my ads or my offers

worse. I want to make them better and

then add more friction because

fundamentally the idea is like I want to

get as many people who want this thing

to raise their hand and then put my

filters in place so that only the people

with money who are qualified come

through. But I want the strongest magnet

to get as many people as possible to

take that first step. and then the

filter to cut out as many of the people

who I don't want in that I got as extra

eyeballs or extra clicks from my big

amazing sexy thing.

And so the other con of free is that

sometimes you have people who have no

intention of buying. Right? This is the

uh the free brings broke people myth.

Let me see if I actually dive into this

deeper. Okay, I don't. So I'll tell you

right now. So here's the free brings

broke people myth.

We tested this. So, we have a tremendous

amount of data on this concept. Um, but

in gyms, as you might imagine, because I

came from the gym world, uh, we'd have

gym owners saying, "I don't want to give

away free service." They'd be like, "It

undervalues my brand, blah blah blah

blah blah, whatever." Okay.

So, what we did was we ran a test and we

said, "10 locations run not free." So,

we're not going to use free in the

advertising. And then, you 10 locations,

use free in the advertising. Everything

else stays the same.

Guess what happened?

The non-free guys closed fewer sales

than the free guys. But here's the real

kicker. The close rate between the

non-free people and the free people was

the same. The best sales guys could

close people who came in for free. And

the best sales guys could close people

who came in for not for free. And the

shitty salespeople couldn't sell anybody

who came in for not free. And the shitty

salespeople couldn't sell anybody who

came in for free. So, the only thing

that changed between these two things

was the cost of the lead. And so, these

guys were paying way less per lead, so

they made more sales, but the average

close rate was the same. We tested this

on 20 locations across different

markets. So, and and I had to do this

every so often because it would rise up

in the community like we shouldn't be

giving away free stuff. And I'd be like,

dude, you can do whatever you want. I

like to do math. And so, if the math

works, do it. If you don't want that,

fine. Do it your way. But don't also

want a different outcome.

So that is the free brings both people

myth is that rich people also like free

stuff. And if it's what they want,

they'll take a first step because if you

remove risk for me, I'll take a no risk.

I'll take a I'll take a flyer. I'll take

a look. But then if you make a follow-up

offer, foreshadowing, uh I might also

buy, right? And so the closing

percentage, the only difference was the

lead cost between those locations. All

right. So the bottom line is that if I

had only one offer to make to convert or

my family would be killed, it would be a

free offer. And I'd rather wade through

crappy leads first and then figure out

how to add friction rather than look at

an empty inbox and an empty calendar

waiting for my next client to show up.

Think about this for one more moment.

One of my big sayings that I've repeated

internally in terms of advertising is

create flow,

then monetize, then add friction. So,

you create flow, which means give the

big sexy thing away. The monetize is

make sure that you're getting the right

people on so you can sell them. Now, if

it's not as efficient as you want,

that's the third step. That's the

optimization. That's the ad friction.

But even inefficiently, we're getting

money. Cool. Now, we plug the filters

in. Now, we optimize. So, create flow,

monetize, add friction. Those are the

three steps I follow. And so the thing

is is you can't optimize an empty inbox.

You can't optimize an empty calendar.

You can't optimize a funnel that gets no

clicks. And so you want to start with

the flow first.

All right. Next point in terms of how to

improve CAC is okay. So discounts and

free. So these are more or less the same

thing. I'm going to use these

interchangeably throughout the book. Uh

they really just exist on a continuum.

And so 100% discount is free. 99%

discount is a discount, but

fundamentally it's just a continuum that

this exists on. And so all the

constructs I use in this book, if it

says free, you can do it for a dollar.

If it says a dollar, you can do it for

$19. It works the same. All right?

Fundamentally, you get something for

less than it's worth. And the arbitrage

between its value and what you get for

it is the reason someone engages. My

little my little tip here is if you have

something where it costs a lot of money

for you as a business owner for somebody

to miss an appointment. So, let's say

you're a dentist or a lawyer or you're

or you're a chiropractor and it's your

time that's being kind of given away and

you charge a lot per hour or whatever,

then you can have it might be more

advantageous for you to do discounts

because then you can get a card on file

which then makes sure that the people

show up, you can charge no show fees,

things like that. And so, if you have

too many like you could solve it in two

ways. You make it free, you have the

first appointment with someone who's an

underling whose time doesn't cost as

much and then from there you book the

one with you, option A. Or option B, you

charge some little mini discount thing

so you can get a card so you can charge

enough show to make sure people show up.

Both work.

All right, so here's how I use

discounts. I don't I think the idea of a

moderate discount is stupid. So the idea

of like 10% off or 20% off, I think is

dumb. I want insane discounts because

10% off doesn't get someone who would

otherwise not opt in to now opt in. It

doesn't change behavior. And so the only

purpose of free or discount is to change

behavior. is to get people who would not

have taken an action to then take an

action as a result of the freer discount

or the the arbitrage of value. All

right? And so for me, if I'm going to do

discounts, I want 50% or higher for

something that people already know the

value of for it to be effective. Now,

the objective here is to get people who

wouldn't otherwise respond to do so. All

right? And if you're not giving away 20%

off the top for the same number of

people, because that just means you just

lose money. the same number of people

reply at 10 or 20% off, you're just

losing a ton of profit. And so, don't

worry, I will show you how to do it

without giving out away the farm. All

right? Like, you're like, "Wait, how am

I g?" Relax. That's what this whole

thing is about. All right? So, there's

four ways to display discounts. Number

one is that you can say the percentage

off. All right? So, let's say it's 87%

off the first visit. All right? That

would be let's say it's a it's 13 bucks

for my $100 first visit. it would be 87%

off. Okay, fine. The next way would be

the absolute amount off. So, it' be $87

off. Now, in the example here, it's $181

off the first week, normally 210. Fine.

That would be 87%. All right? But it's a

different way of displaying it. And

you're like, why is he telling me this?

Because you test these. So, if you have

your $100 thing, you run 87% off. You

run $87 off. you then run the relative

equivalent of meaning what is that

savings of value worth. All right? So

like save a steak dinner uh or less than

going out to lunch. It's saying this you

want to you want to frame it. Now a

different way of thinking about this is

called a portion off which um I usually

bucket into this which would be like if

I had let's say a $100 a month

subscription uh and the thing was 12

months. So, $1,200. If I if I want to

give 25% off, again, we're we're

breaking rules here, but uh if I want to

give 25% off, which would be three

months, four months off, uh then that

would mean that I could say, okay, this

is $800. I could say it's four months

free. I could say it's 25% off. I could

say that you get $400 off. Those are all

different ways of describing the exact

same thing. I could also say finally

it's $800 and above that I would have

$1,200 crossed off which is simply

displaying the discounted price next to

the retail value. These are all

different ways that you can display a

discount. And so since this book is

about monetizing traffic, you need to

know the different guns you've got, the

different weapons, you've got the

bullets in the chamber that you can use

as an advertiser to rotate through to

get one more people to respond, but also

to keep the advertising fresh. So like

if one month you run four months free

and then next month you run $400 off and

then next month you run $800 crossed off

$1,200, the market feels like you're

changing your offer every month. But

that way internally for you,

everything's the exact same. but it

creates freshness in terms of the

advertising. So, how different do all

those feel? They are all the same thing,

just presented different ways. And

that's why we do this. So, this is a

little pro tip that I will give you. You

probably can't read this. I'll just tell

you what it says. um which is that in

order for a price off or a simply

discounted price to work, the market has

to have an understanding of what the

price of that commodity or what that

service is. And so if I say that I'm I'm

selling, you know, an adjustment for a

chiropractor for $29, that is effective

because people know it costs more than

that. They might not know how much more,

but they just know that it's more.

That's cheap for that thing. If I say

$20 teeth whitening at a dentist, that's

going to get a lot of people who are

super interested because people know

it's way more than $20. I could probably

say $100 teeth whitening and people

would still say that's a great deal,

right? Because there's an idea. Now, if

you have an intangible product or a a

product that no one else sells or it's a

digital product or you're like a a

creator and you want to launch some

thing, if you then say it's this price

off of this price, there's not a lot of

value because the the arbitrage is is

arbitrary.

So, you made it up. And so, there's no

there's no pegged kind of marketplace

price for the thing that you're selling.

And so in those instances, that's where

percentages off off of a retail, things

like that work a little bit better than

just saying like $17, you know, course.

It's like, well, that that might be

expensive for some people and cheap for

other people, but for a teeth whitening

thing, everyone knows it's cheap. And

that's why if you are going to put that

one price on there, you want to do it.

This is like me differentiating for what

business owner this works for, to be

clear. All right, so here are the pros

of discounts. So we talked about the

pros of free stuff. Here are the pros

and discounts. So, uh, one is that

they're compliant for cheap leads,

meaning you don't have to ever worry

about like anybody saying that you did a

bait and switch or anything like that.

So, if you charge people for stuff, then

there's there's really nothing to say

about it. All right. Number two is that

you can actually collect some money,

which is decent, right? I mean, some

money is better than no money. Okay. Um,

people do come expecting to spend some

money. So, this to be fair, this is my

belief on this.

I believe that the reason the discounted

people come in and buy more is because

salespeople believe that I don't believe

it actually has any difference because

when we talked about the free versus not

free the close rates were the same. So I

think it's more that sales people feel

more convicted but when I look at the

data it doesn't make much of a

difference because I could equally say

these people were just looking for cheap

stuff. Works the same way. It just it

depends on what narrative you want to

tell the salesperson. Um, these work,

and this is probably the most important

one, these work exceptionally well as

two-step sales. Here's why. If you get

someone's card before they come in, then

when you when they come in, you can then

make the upsell and say, "Do you want to

use the card you have on file?" And so,

the key is that you have the card more

than what you charge them for. So, it's

like you almost want to charge them for

the cheapest possible thing to make sure

the card works so that when they come

in, you can have a seamless upsell into

the really expensive thing. And so

that's what creates the upsells that are

smooth as butter.5.

Now, here's the cons of discounts. If

you don't do it right, you're giving

away, you don't ever give away the core

service at a discount. You give away a

break broken off piece of the core

service or something extra that you

create and then create a huge discount

on it. All right? And so you don't give

away core offers that has or stuff that

has hard costs unless you like really

know what you're doing. Um, you splinter

out the thing. Now, I talk about this at

length in the $100 million offers

course, so I'm not going to break it

down now, but basically lots of

different components to your offer. You

have lots of different features. You

take one feature off. You say, "This

feature is 99% off now." Great. That's

where the discount is. And then you sell

the rest of it. All right? And so,

whatever you break off, it has to be

something that's well understood or it's

not going to work. All right? That's

kind of the thing I was talking about

earlier. People have to have an

understanding of it. Um, the cons are

you got the bargain hoppers, right?

People who, you know, complain about

this, but really they they're already,

you know, uh they're already customers.

They're easier to upsell though than

someone who's cold. So yeah. All right.

So the objective is that attraction

offers are the first step in the four

prongs because if you don't have

interest, you don't have anything,

right? And so customer finance

acquisition requires demand. And a big

difference between CAC and GP having

lowcost or free frontends is a strong

way to do it. So lots of demand, free

big frontends drives more in.

All right. So, these things are going to

be interchangeable throughout the

remainder of these trainings. So, if you

see $19 chiropractor visit, it can be

just as much a free chiropractor visit.

The whole thing will work. But if you're

like, you insist on doing this, fine, do

that. If you insist on doing this, fine,

do that. It does not matter. All the

money models that I will show you can

have free or discount interchange and

they will both work.

Kaboom. These are the ways that you can

improve your CAC. So with that being

said, CAC is covered. Now we go into

gross profit.

Gross profit. All right, let's rock in.

So this is the second of the three

metrics that we look at to triangle

acquisition. We started with CAC. You

have to have cheap customers. We talked

about the different ways to improve it.

Free your discount, different ways to

display discounts. Uh but now we're

going to talk about gross profit. Okay?

So we're going to define what it is, why

it's important, examples, calculating,

and improving it. All right, let's rock.

So, gross profit, the difference between

the price and the cost of goods sold.

So, cost of goods or COGS is what it

cost you to deliver the thing. All

right? So, if it cost me $9 to deliver

meals and I sell it for 10 and I got $1

in gross profit. All right? Very

straightforward. Now, here's why this is

important. So, the problem is that most

businesses think they need cheaper leads

when in reality they need to make more

money per customer. And so, my

observation is that the CAC, this is

this is me like high level because I see

lots of businesses CAC between

competitors is often fairly similar. So,

a lot of people are, you know, obsessing

about how they're like, you know, they

want to improve their ads and things

like that. And sometimes you do need to

do that, but the ranges are actually

much tighter than you'd think. So, you

might see somebody who's, you know,

acquiring customers at $2,500. Somebody

and somebody else in the marketplace

might be $3,500. Rarely would you see

somebody at like $6,000 unless they're

like just getting into the market. But

the CAC for specific avatars is usually

pretty tight in terms of ranges when I

see many businesses in the same

industry. Now that may surprise you, but

that just like kind of is what it is.

But the difference between how much

money these these companies make is

often how much customers are worth. Now

that is where the huge discrepancy

between businesses exists.

So

this is the difference between the

whales and the minnows is how much they

make per customer, gross profit. All

right. So let me tell you a quick story.

So I did a consulting day years and

years and years ago. This might have

been the first five I ever done my whole

life. Um, and a guy was in the same

space as me. And you're like, "Wait,

Alex, why would you help somebody who's

a quote competitor? I don't see the

world that way." So, guy came in and he

was selling the same number of units per

month as me. All right? Same number of

units per month as me, but I was making

56 times more profit than he was. That

means 56 years of him making the amount

of money that he made is what I made

every year. And so, he was making

$300,000 a year in profit and I was

making 17 million a year in profit.

same number of units sold per month. And

so the major difference is how much we

made per customer. And so gross profit

is the arms race of business because the

thing is is the person who makes the

most money can spend the most money.

This is how you get an ethical monopoly.

So like you don't have a monopoly from

okay, I'm uh I'm you know I'm somehow

protecting any like no one else can do

business. You're saying you're welcome

to do business, but I'm going to

outspend you on all advertising

channels. So, for you to get your word

out, you're going to have to out bid me.

But because I created a better business

model, I can outspend you. In the

auction of attention, this is a Dan 1080

quote. He who can spend the most to

acquire customer wins. This is my

version of the quote, which is what I of

course I like my version. Uh, he who

makes his customer worth more to his

business than do his competition wins. I

think about this in terms of what can I

do. So rather than thinking, oh, I can

spend I love Dan to be very clear. Um,

you can spend the most, it's like it's

what do I do in order to spend the most?

What I do is I make my customer more

valuable. The outcome of that input is

that I can now spend more. So these are

really just two parts to the same quote.

If this is the precursor to this one, if

that makes sense. All right. So that's

why this is important. So let me give

you an example.

So I remember when I uh I was uh at at

at Smoothie King. I was a blender tender

and my buddy was reading this article in

the back of the store, probably goofing

off when we probably shouldn't have

been. Uh, and he was like, "Dude, check

this out. This guy bought a $50,000

burger." And we looked at it and it was

like made of gold and whatever. Crazy

Wall Street person bought a $50,000

burger, right? And and I was thinking

about that and I remember the article

said something like he was making $50

million a year or something like that in

income. And so what I ended up doing was

I started looking at what it cost him in

hours versus what it cost me in hours

for the burger that I bought earlier

that day. And so then I realized that my

$13 burger was the same to me as this

Wall Street guy's $50,000 burger. That

it was actually the same level of

inconsequential cost for him as it was

for me. And arguably this was more

expensive for me than it was for him.

Just a normal burger. And so that that

concept basically is the reverse of the

realization that

you can only go down to zero. You can go

infinitely high when it comes to

lifetime value. And so like you can only

drive down so far right on on the on the

cost side. But in terms of how much you

can make, that's where you can be as

creative as you want in terms to

continue to increase the lifetime gross

profit per customer. And so it can make

something as insane as paying $50,000

for a burger or CAC actually still be

relatively cheap for you if you know how

to increase the value of the customer.

And so think of the burgers as the

commodity, which is traffic. Think of

our income as the lifetime gross profit.

If I were competing with this guy, he

would be able to outspend me 3,700 times

over. And in the auction of attention,

he would out bid me every time. And our

goal is to do the same to our

competitors.

All right? So you need to look at both

sides. Getting customers for less, but

also making them worth more. All right?

And before we improve it, we got to know

how to calculate it. So here's gross

profit, how we calculate it. So here's a

product example. So if I sell a widget

for $100, it cost me 20 bucks to

manufacture it and ship the widget to

the end customer. All right, so my gross

profit is 100

minus 20, 80 bucks. This is what's left

over. This is my gross profit. Okay,

here's a service example. Let's say I

deliver services monthly and I have one

account representative per 10 customers.

If my clients pay me $3,000 per month

each and my reps cost me $6,000 per

month, we can then figure out the gross

profit margin. Okay, so the rep salary

is $6,000, the clients per rep is 10.

The cost per client means it's $600 per

client. Remember, we make $6,000 divided

by 10 clients, $600 per client. Gross

profit, all right, is now $3,000 what

they pay us minus my cost per client,

which means $2,400 left over. The reason

I'm going through this is that many of

you guys watching this are service based

businesses and don't know your costs.

These are your costs. So, my gross

margins are $2,400 divided by $3,000,

which is 80%.

Rule of thumb from Alex, if you run a

service-based business, local

brickandmortar or national, you want at

least an 80% gross profit margin. Now

that that may sound crazy to you, but it

is very unlikely that you will scale in

service unless you have 80 or higher. So

not just that means that if it cost you

a 100red, you got to sell it for 500.

Now you might think because if you're a

newer business owner, you're like, "No,

I that that seems unreasonable.

That's your gross profit, not your net

profit. You still have rent. You've got

you've got your fixed admin costs.

You've got insurance. You've got

utilities. You've got break fix that

happens within your business. you've got

all these other costs that go into doing

business. You're not running 80% net

margins. You're just saying this is now

all the money I have left over to run

the rest. I still got to spend

advertising dollars. Like there's all

this money that I still got to spend.

And so if you if you're at 80, you might

be running a 30% net margin business,

right? So just to give you context on

this, okay? And so the pro tip is that

gross margin equals gross profit times

100%. So, if you ever hear me say gross

profit versus gross margin, uh it's just

this is a percentage. This is an

absolute. That's all it is. So, gross

profit is the absolute. Uh gross margin

is the percentage. That's all it is.

Okay? So, if I say it's 80 bucks in

gross profit, it's 80% gross margins. I

just I I clarify this because if you've

ever like read stuff and been like,

"Wait a second, is this different?" It's

just a different way of measuring the

same thing. That's all it is. All right,

cool.

So, big picture, this is what the

business was. Uh this is the example I

gave visually. This is the correct

visual. Uh all right. And you can note

that gross profit is not net profit. All

right. This is the cost limited to the

that what the business incurs directly

from delivering the thing. So if you had

an administrative assistant and you sell

cups for $10, they cost you $2. We

wouldn't factor in your administrative

assistant into the $8 of gross profit.

It's off the gross profit that we

eventually pay for everything else in

the business to create our net profit,

aka what's left over at the end of the

month. All right. Right? So, your rent

doesn't go into your gross profit. Your

admin costs don't go into your gross

profit. Your utilities don't go into

your gross profit. It's just the cost

of, okay, if I sold another one of

these, if I sold another customer, what

are the variable costs? What are the

costs that go up per unit sold? If your

rent doesn't go up per unit sold, if

your admin cost doesn't go up per unit

sold, then it is not factored into gross

profit. But if my hard cost of cups, if

I sell another cup, I still have to

incur that cost. If I if I have uh if I

have to sell another client, then a

certain portion of my resources of

client delivery is going to get

allocated to that next client. Now, some

people are like, "Wait, but I have to

pay my person either way." Not really. I

mean, you do up to 20 and then you have

to hire another one. And so, you just

have to fractionalize it in terms of

your thinking. So, it may feel fixed,

but it's not. You just have to you have

chunkier um start stops more than it's

uh a fixed cost, if that makes sense.

when it comes to calculating this.

So, you're like, "Okay, got it. I have

mine and mine sucks. So, what do I do to

improve it?" So, improving gross profit,

there's a lot of ways to increase gross

profits. Um, but without altering price

or cost structure, the three easiest to

remember are more, better, new. All

right, which is sell more of the stuff.

So, more quantity or duration of the

thing. So, get them to buy in bulk or

buy again tomorrow. Sell a better

quality version of the thing. So, that

would be like a regular burger versus an

organic burger. or a large group versus

personal training better version of the

thing or sell a new thing. So you fries

in a Coke which then you could

superersize on quantity and quality as

on top of that. That's the that's the

quick and dirty. We're going to get into

lots of different versions of this. All

right. So that is gross profit.

We talked about the three things for

acquisition. So we've got cost to

acquire a customer, how much it costs

us, gross profit, what we make for what

it costs us. And now we go to payback

period, which is how fast this all

happens. So if you see PPD just payback

period or payback period. I'll probably

just say it out loud because I don't

want to confuse you. All right. So we

got the definition why it's important

examples and then how to improve it.

Let's start with definition. So payback

period how long it takes until gross

profit is greater than CAC.

In other words, how long does it take to

break even? The shorter it is, the

easier it is to scale your advertising.

So if I break even in a day versus

breaking even in five years, it's a lot

easier for me to scale, right? Because I

get my dollar back tomorrow. Then I can

spend it again. Some people call this a

cash conversion cycle. I probably won't

say that again, but just in case you

hear it, that's what that means. All

right, so that's the definition. Here's

the importance. All right, so problem

number one. Businesses take too long to

break even on getting new customers and

so they have to manage cash flow by

making a marketing budget. I think this

is silly. We solved that problem.

Problem number two is that businesses

feel guilty making multiple offers in a

row because they think that they bother

people. They are wrong. that people who

feel this way are poorer than they

should be. And that's exactly how buyers

buy, by the way, is that there's short

windows of time that they go super hyper

buying cycle and then they go dormant

again. And so if you do not take

advantage of this hyper buying cycle

when someone makes a new decision or

starts a new lifestyle or make creates a

new identity for themselves, you will

miss out and another business who is

intelligent, who makes more money than

you will profit.

So here's a story you probably haven't

heard from me. So, uh, friend of mine,

business owner, decides to lose weight

and, uh, remembers that they like riding

bikes and goes online to buy a bike. All

right. Now, this is what happens after

she immediately buys a bike. She enters

a hyperactive buying mode. She then buys

a helmet, she buys shoes, she buys

pants, she buys gloves, she buys water

bottles, she signs up for a race. You

get the idea. All within a day or two.

Now, if you were that first bike shop

owner and you were like, "Well, I don't

want to offer a helmet. I don't want to

offer shoes. I don't want to offer GL. I

don't want to seem pushy." She wants to

buy them. She signed up for a race.

She's going She's going to buy them.

It's just whether she's going to buy

them from you or the guy down the

street. And there's a very big

difference between hard selling and

letting a customer know the offers you

have available. You're making offers

available to them. And if you have,

think about it this way. If someone has

a problem and you have the ability to

solve it, it's my opinion that ethically

you should let them know you can solve

it and what it would cost them for you

to do it for them. You make them aware.

If they say no, no problem. Fine. But at

least tell them, make the offer because

you sell 0% of people who don't know you

have something to sell.

You are making offers. They can choose

to take them or not. And if you believe

in what you sell solves a problem, then

solve more problems.

Yes, it's cool. No, also not

also not cool. Yes, also cool. All

right, so that's the importance. So,

let's do a quick example. So, payback

periods. So, if it costs you $160 to

acquire a customer, CAC, and you sell a

widget for $100 a month, that cost you

20 bucks gross profit, so $80. What's

your payback period? We make $100 from

the the person who buys their first

month. Our gross profit is 80 because we

have to have 20 bucks that are off for

cost of goods. So, that means that I

spent 160, but I made 100 back, but I

had another cost of 20 for my cost of

goods. So, I have $80 left over. Sorry.

Uh, I'm down 80 month one. All right.

So, let's look at month two. Month two,

I didn't have my cost to acquire the

customer. I still have my cost to

deliver. I make my 100 minus my 20 cost

to deliver. I have another 80. So, now

I'm at zero. Okay. So, month two is my

break even month. So, what's my payback

period? Two months. Also to be really

clear here, if it cost you 160 bucks to

acquire a customer, some people are

like, "It takes me one and a half months

to break even here because they see $100

in revenue." They say, "Oh, it's one and

a half months." You have to take out

your cost of goods in the payback

period. If it cost me $9 in meals and I

sell 10 bucks for the meal, I make a

dollar. I can't say, "Oh, you know, they

paid me 20 bucks, it cost me 20. I break

even in two months." You have to do it

off gross profit. All right? So, here's

how to improve it. You can make them

more better or new offers. And here's

the key part. in the first 30 days. And

the key part is to to do it at the right

moment. The reason that somebody will

not take an upsell from you is because

you did it the wrong way or at the wrong

time or you described it poorly or

they're the wrong person, right? And so,

let me give you the supplement sale

example. This is just a zone in on

timing. Presenting it at the right time.

So, I say this because some of you might

have an amazing upsell offer. You just

you're just presenting it not when the

problem uh exists, all right? Or creates

itself. So, I tried to sell supplements

after people bought services from me and

it didn't work. Now, I could give you a

whole bunch of theories around that.

Someone comes in saying they want to

lose weight and I say, "Awesome. Let's

get you signed up." And then right then

after they signed up, I say, "Oh, by the

way, buy these supplements." And you

might think, "Wait, isn't that a hyper

buying cycle?" It's my belief that the

person scratched their itch of weight

loss the moment I sold them the service

package. And now I'm like trying to

reopen a closed wound kind of. It's

like, "Wait, I thought I just solved

that problem, right?" So what I figured

out was I would say, "Hey, come in for

an nutrition orientation." And then 48

hours later, they come in for nutrition

orientations. And then I would walk

through their food. And so with the

food, then I would say, "Oh, you're not

eating these things. You should probably

add this stuff in." I created a new

problem, which I could then solve with

supplements. And so the thing is is that

you want to be able to offer it at the

right time. You sell at the point of

greatest deprivation, not at the point

of greatest satisfaction.

Well, really like

advanced people know what I just said.

Beginners, please hear that again. You

sell at the point of greatest

deprivation, at the point of greatest

pain, not at the point of greatest

satisfaction. If I just had a big steak

dinner and then you say, "Do you want

another steak?" You might have amazing

steak. I don't need any more steak. I'm

satisfied. And a lot of you guys are

trying to make your upsell offer after I

already ate a steak. Now, I might have a

dessert stomach that's open, but my

steak stomach is full. So, we create

deprivation. We make offers at the

moment of deprivation. If somebody's

really thirsty in the desert, after you

give them the cup of water, they don't

want the second cup as much as they

wanted the first one. So, the timing

matters. So, these are the times that I

think through when I tend to incorporate

upsells. And this is important for

decreasing payback period. So, one is

right immediately after the first sale.

Sometimes this works great. So to be

clear, if I'm selling if if that new if

I solved one problem that then naturally

creates the next problem immediately

upselling works. If you have to create

another kind of problem in someone's

head or guide them through awareness,

then that's where you have what I call

the next step. So the version I just

gave you with the orientation, the

nutrition orientation, that's like

great, that's the next step in the

process. So this is usually a 24, 48, 72

hour difference between first sale and

next step. The next time period where I

think about selling a customer or

upselling is after they have a big win.

This is a milestone. Someone says, you

know, they have some big success. Now

you're like, wait, I thought you said

that you sell at the point of greatest

deprivation. Yes. So if they have a big

success, then it means we fully solved

one problem, which typically means a

fully formed new problem also opens. So

great, you got to $10,000 a month. you

probably have all these tax problems now

and you probably need employees to help

you take all this time because now that

you're working all the time and you're

making this money, you probably don't

have time. You have money but not time.

So, let me solve the next problem for

you, right? And so, you can there's

always if you're a good entrepreneur,

you're always solving problems. And

fully solved problems always create more

problems.

After they have a big win, then I like

to think about the halfway point. This

is just me historically seeing that

people at a halfway point tend to be

very open to upselling. And finally, I

call this the last chance. Now, if

you're like, "Wait a second. at the end

of a of a period with a customer is the

last chance, not when I should upsell.

Yeah. If you haven't upsold them here,

so many of you guys are trying to make

your upsell at the end of the first

thing. You've already lost it. Like,

this is your last shot. You missed all

of the other times that you're supposed

to sell them. And notice four out of the

five are before the halfway point.

So, you're losing out. So, I can almost

guarantee Well, I'll say it this way. I

have never not had this work. So, I

can't guarantee it, but I've never not

had it work, which is if this is when

you're upselling people or attempting to

upselling because I already know you're

probably failing at it. If you move it

forward in the sales process, in my

opinion, you have an incomplete buying

cycle. So, I don't want to reopen

something. I want to just ride the one

I'm already on. It's like, hey, you're

halfway through. Let's keep the party

going. Hey, you're doing great. Let's

let's keep it going. Let's let's add

this other piece of service on. Hey,

let's let's get you there faster, right?

Let's let's decrease your risk around

this. let me get you more support,

whatever it is, right? We want to keep

the party going. I don't want to finish

my service package and then have to be

like, okay, now that you've completed

our first, you know, service of work,

let's talk about working together again.

It's like, uh, I'm good with what you

gave me before. You know, I'm pretty

happy with that. This is cool. All

right. So, those are the five times I

think about selling. Now, again, make

more better new offers the first 30

days. These are the five. So immediately

in the same conversation or conversion

event, next step is 24 to 72 hours first

big win. This means you focus on getting

them fast wins so that you then create

new problems that you can then solve.

Halfway point. Um this is just I just

I'm telling you just it just has worked.

So I'll just throw it out there. I give

you some scientific whatever thing, but

I just know it works. And then last

chance is the exit interview, right? And

uh this is only useful for payback

periods if it's within the first 30

days. But pretty much all of these ones

uh apply most of the times within the

first 30 days. the customer coming in.

These are some easy ways to do this. You

can have somebody pay first and last

month today or you can add an initiation

fee and onboarding fee an enrollment fee

or an activation fee or make up whatever

fee you want. You too can have this

power. Uh you just you just add that on.

So if I wanted to improve that one I had

earlier, if I didn't want to wait two

months, I would say great, we pay first

and last. That's how we've always done

it. And then I could offset. Now notice

the fee is all gross profit. So now I'm

actually up 80 on my first transaction.

And now I've got half the cost to get a

new customer already back in my pocket

before I even have the next payment 30

days later. So every two customers buys

me another one before even having to

wait for the recurring to hit. All

right. And this is how you really scale.

This is just one structure. There's a

gazillion that I'm going to show you.

All right. So we went from two months to

one and a half. All right. Within 30

days. All right. So that's how you

improve it.

And that is about shortening payback

period making money faster.

So we just triangulated the cost to

acquire customers uh gross profit and

payback period that is what creates

client finest acquisition. And I want to

unleash the three levels of advertising.

This is also not in the book for you.

All right. So client finest acquisition

or CFA the three levels of advertising.

So this is how I would describe three

levels of advertising for you as a

business owner. So let's start with

level one. This is where lifetime gross

profit is greater than the cost to

acquire a customer. This is the dull

level. All right? So, you've got to make

more money than it costs you to make it

over the lifespan of the customer.

Ideally, at least three times more. So,

what it cost you to make the money, how

much money you make fundamentally,

that's it. If you don't have that, then

you don't have a business. So, you need

at least this to be a business that can

make money and grow. So, level two is

30-day gross profit, not lifetime.

Notice the big difference here is the

time difference. This is forever and

this is the first month. All right, is

greater than CAC. I'll explain why the

first month is so important in a second.

All right, so we want to make more money

than it costs you to make it in 30 days.

And so the result, this is the key part,

is that you never spend your own money

to grow.

And so why is 30 why is 30 days the

number? Because that's the amount of

time that any business can borrow money

with zero interest in the form of a

credit card or credit lines. Many

businesses, banks will even give you uh

interest free credit lines for 30,

sometimes 60, sometimes 90 days,

depending on, you know, your

relationship with the bank, how much

money it is, whatever. But at least

every business can get 30-day interest

free money.

And so that means that the way the

financial system exists right now, at

least in America, you can get money and

not pay for it as long as you pay it

back in a month. Which means that my

objective for you, because I've always

operated on I've owned everything and I

haven't sold equity and I haven't taken

on debt to grow all my businesses and

I've been able to grow them absurdly

fast relative to the marketplace. I'll

just say it like that. And the way that

we've been able to do it is because I

take the money that I have access to and

I can take as much as I possibly can as

long as I figure out a way to pay it

back in that first month.

All right? And so you can use the credit

card to get your customers, then pay the

card back, then reuse the money, recycle

the cash, and get another customer. All

right? As long as your gross profit in

the first 30 days is greater than the

cost to get them, you can never carry

debt while growing your business, which

is a sizable advantage.

So this is what level two advertising

would look like. So 30 days gross

profit. So that means that like if I got

that first customer, right, if it cost

me uh 160 to get the customer and I got

180 back in gross profit, then it's just

all free.

They're all It's just all free. That's

how it works. And so note is that if you

have an XXX limit on your credit card,

you'll always be limited by the amount

of customers that XXX number buys you

before having to pay it back. And so

this assumes that you don't reinvest the

excess profits after the 30 days on

marketing rather than putting it in your

pocket. Okay. So once you unlock

acquisition this way, typically

you will get limited by your operational

constraints before you will get limited

by your advertising constraints. You

will not be able to handle the amount of

customers that you can bring in. And

that's what's going to throttle down

your advertising more than you can't get

more customers. So that's level two is

that now your 30-day gross profit is

greater than your CAC, which means

you're just getting free customers. Now,

level three is where I like to live,

which is that my 30-day gross profit is

greater than two times the cost of

getting a customer. Okay? So, pay

attention what happens here. So, you

make gross profit more than twice CAC in

the first 30 days. And the result is

never being limited by money at all.

Remember, the first version of this is

like I'm limited by the amount of credit

card that I can that I have access to.

With this, there are no limits.

And this is the goal of everything that

I'm going to basically go through for

the rest of this training with you. All

right? And so this way, one customer

pays you back for the debt you have, but

then also pays for the next customer. So

you basically just repay your original

spend one time. And then you have enough

money to buy another customer. And then

that customer comes again with two

customers preloaded into it. And so then

you pay itself back and then the next

one. And then that is how you continue

to multiply. And now you're using house

money to use a gambling term. It's like

you're not you've already repaid

yourself back on the first one, but you

still have this extra cash. You buy the

next guy, he comes with two. And now

you're just doubling. And the thing is

is you're doubling your rate of

acquisition by customer, not by month,

which means this can happen daily in

terms of the doubling. All right? And

this is the key to unlimited scale for

advertising. You have to compound your

advertising.

And so this is what it would look like

if you just reinvested on a 30-day loop

instead of a daily loop. This is just to

say like you buy, you know, you get them

in today and you have two or three

upsells, whatever it is, within 30 days,

and you get you get twice the cash back

in that in that 30-day period. Well, I

got one customer this month using that

cash and next month I've got two. Next

month, uh, four, next month eight or

whatever it is. Yeah, I think that's

eight. Yes, eight. And the next one's

16. It would be, you know, all the way

up there. All right. More than I can

visually display.

And so this is what it actually looks

like math-wise. All right, so I actually

I think I removed this from the book

too, but uh within a year of reinvesting

your advertising prof, this is the key

point is if you have to reinvest the

advertising profits to getting new

customers, the advertising is obviously

no longer a bottleneck in your business.

And this is what this book accomplishes,

removing money as a limit for your

growth. And so that's why I like I write

this because for every person that's

like I need money to make money,

you need to have more skills. Somebody

who has fewer skills needs more money.

So look at the math here. Month one to

month 12,

one customer, two customers, 4 8 12.

This is just a two two multiplied out.

And then this is here's where it gets

wild. This is new customers per month.

This is total customers. So, I'm ending

the year with 4,000 customers if you

just make twice what it cost you to

acquire a customer in gross profit in

the first 30 days and you reinvested all

of that into getting more customers. And

so, you can end the year at 4,000 plus

existing customers with that framework.

By the way, this is exactly what we're

doing with school.com

is how we're going crazy growth right

now. So make gross profit more than

twice CA within 30 days. This is where

we want to go. And to be clear to

achieve this level of advertising, 2x is

the minimum. You can by all means get

3x, 5x, 10x, you can get 10 customers

loaded with every customer. The money

just multiplies faster. All right? And

so I'll tell you this brief story, but

if you want to know what my return was

for gym launch in the first year, I had

a 100 to one return in advertising. Yes.

A hundred times. And so I spent a h

100red grand and made 10 million.

The limit to that business then and now

was market size and our operational

capacity to scale service, not our

ability to profitably acquire customers.

And that's what I want for you. And

that's what this book accomplishes. And

that's what I've had in virtually every

business since my first gyms. And the

thing is is that I think most people

move on from this part too soon. rather

than saying like no, we have to make it

better until we can get this thing to

work for free. Then you move on

and the main reason was we had a better

money model.

Level three check. So you were here for

the money models training. We just

finished the three levels of

advertising. Now we begin to talk about

money models.

So we just covered the three levels.

Let's rock into money models and offer

stacks. All right. So, uh, you will

notice throughout this whole training

that some of the things are a little bit

different from the book, and that's done

on purpose because I like to think

through things differently in different

mediums. All right? Because I can say

things here that I couldn't normally say

in the book. So, we'll go definition,

run a car story, and the gym launch

example. All right? So, a money model is

a series of offers. That's it. The

reason I had to start with the offers

book before talking about the money

model book is that an offer is one unit.

A money model is sequencing these things

is putting them in a series of offers

deliberately to maximize gross profit

collected in the first 30 days. So I

will say this alto together a money

model is a series of offers. A good

money model which is the objective of

this book or this training is a series

of offers structured to minimize CAC how

much it cost you to get a customer

maximize gross profit how much they pay

you collected in the first 30 days how

fast they pay you. That's the point.

So, I'll tell you a story. So, I we've

all seen a money model happening. Some

of you guys just didn't know it was

happening to you. So, I remember this

crazy example of one time I I was I was

going I think it was going to Colorado

for some reason. Went to Colorado. I you

know I I line up. I'm like on my phone

waiting in line for a couple minutes and

then they pull me up to the the rental

car counter, right? And the lady was

like, "Hi there." You know, very like

chipper. I just remember a big chipper.

Anyways, and so she asked me a number of

questions as she's going through the

rental car process. So, she says,

"Hello, sir. Can I have your ID so I can

look up your reservation?" And so, I'm

barely looking over my phone. I'm like,

"Yeah, here you go." And so, she, you

know, extends her hand, smiling. And,

uh, I've been waiting for a few minutes,

right? So, I just wanted to get in my

car. So, I hand my ID. Cool. So, then uh

and I'm at that counter. You, you can

see like I'm kind of like leaning over.

And so, uh, so it doesn't look like uh

we have the car that you reserved. Are

you okay with a Tundra? It's red. And

so, I was like, "Yeah, sure. That's

fine. whatever. And uh so I'm not really

paying attention. And then she says,

"Okay, I've got you down for 3 days.

Would you like to have a late return so

you don't have to worry about late fees

or turn-in time uh you know, if you're

on in a rush to get to your plane

flight?" So she asked her head kind of

like with her head coco. And I was like,

"Yeah, I guess that's fine. Flexibility

is good." And so she was like, "Okay, um

great. So give me a second. Just putting

that in. Would you like to upgrade your

insurance to cover any bumps and

scratches in the car? It covers any and

all damage that occurs in the vehicle

during your stay. And so I was like,

"No, I'm good. I have no plans on drag

racing, right? It's haha." And she's

like, "Okay, so just the minimum

insurance then?" And I said, "Yeah,

that's fine." I barely looked up, right?

I'm just like going through this cuz I

want to get the car. And she's like,

"Okay, then I have your keys ready in a

second. Do you want to prepay for your

fuel so you don't have to worry about

filling it up? Uh, you just you can

return it on empty and not have to worry

about paying it. Uh, we fuel gas at 375

a gallon." And I was like, "Well, what's

gas cost around here?" She was she was

like 350. And I was like, 25 cents, you

know, per gallon? Yeah, sure. That that

checks out. That that works. And so I

was like, so an extra2 $2.50. I was

like, well, that sounds reasonable.

That's not that's not a big deal. I

don't have to worry about it. So boom,

sign me up for it. I'll prepay the gas.

And so she says, "All righty then. Well,

here's your ID. Can you sign here for

me?" Great. There's your receipt. On the

back, I circled the parking space. Just

go around the corner and pass the

restroom sign. Uh go past the first

three columns, and you'll see the J

space on your left. Your Tundra should

be about halfway down. enjoy your trip.

All right. And so, mind you, right, I

take my thing. I'm walking away, right?

And I look at my receipt and I just paid

$400 bucks for a three-day rental when I

had reserved online for $19 a day. And I

was like, I went from 19 bucks a day to

$400.

What had just happened? A

well-engineered money model. And I

remembered that moment and I was like, I

need to write this down. This is the

perfect example of what it looks like to

create a money model. series of offers

structured sequentially to monetize the

customer and provide as much value as

humanly possible. So, if we think

through each of the upsells, she first

upgraded my car from a Toyota Yus to a

Toyota Tundra by saying that my

reservation wasn't there. Now, in my

life, I've never had the car that I've

reserved actually available. I don't

know if some of you guys said I feel

like I've never actually had the car

that I asked for there. So, this is the

classic Seinfeld joke. He's like, "Oh,

no. I think you know how to take the

reservation, but you don't know how to

hold the reservation." And that's that's

kind that's the main part of the

reservation, right? And so we went from

and just from that, I went from $19 a

day to $69 a day. Right? Now, she solved

my big guy in a car in a small car

problem by offering it. Now, did they

probably have another Yurus like

vehicle? Probably. She just made the

offer and I said yes. Second one she did

was late checkout. So, this would be it

would add a half day or a one-time fee

to my reservation. Now, um I think I

shoot I can't remember if I declined the

offer, but the point is is that they

made this fee up to begin with. This is

the main part of this is that the idea

of late checkout only exists because

they decide that if you check out past

the time that they made up arbitrarily

is now late. And so what I want to

really put into your minds right now is

that we are I'm explaining the policies,

but there's a game maker who made the

rules of the game. They created this

fee. Think about the like if you start

rental cars, you don't immediately say,

"Oh, if someone comes back an hour

later, I'm going to charge them." You

don't. We think that now because that's

how it's that's how it's always been.

But it wasn't always like that. Some guy

figured it out and then every other

rental car started doing it. The next

one was the insurance upgrade. Now, a

lot of you guys saw me not take this,

but I did take insurance. I didn't even

realize it. And I use this for

everything after this point. And so she

said, "Do you want to upgrade your

insurance?"

Now implied in the language is that I

already have insurance by saying, "Do

you want to upgrade your insurance?" And

so some customers will take the upgrade,

which is fine, but the real sale

is the minimum package. She then said,

"Oh, would you just want the minimum

then?

You don't want anything else, do you?

Those are implied sales. Do you want

anything else besides the thing I just

said? The minimum offer, meaning you

have to get it because it's minimum. But

the thing is is that you don't have to

buy it. A lot of, by the way, credit

cards already have rental car insurance

built in. If you have MX, for example,

and you do trips on AX, they cover

rental car insurance. And so this is

pure profit for them. All right, so pro

tip for you. But the thing is, and this

is the pro, this is the really sexy

thing is that this is masterful naming.

So if you have multiple packages, you

can downell your minimum package knowing

that 90% of people might take it simply

because you called it the minimum

package instead of saying, "Hey, this is

my shitty package." Think about how

different minimum is versus uh economy

package, right? Minimum is like, "Well,

okay, I have to get it." Right? Kind of

interesting. All right, so the next one

is prepaid gas. Now, this one was uh

sneaky in that the way it's positioned

to be very clear. You want to make sure

the customer understands things. All

right. Now, this one particularly was

one that I did the math and I thought I

was like, "Okay, 25 cents extra per

gallon. That's a that's a fine deal."

The way it actually works, by the way,

is you prepay the whole tank. So, you

buy a full tank and I think the Tundra

had like whatever 25 gallons in it. So,

I actually ended up paying $93 for a

tank of gas up front. And so, basically,

whatever I don't use is profit for them.

And so if I use half a tank, not only

did they I did I charge 25 cents more

for the gallon, but the half tank I

didn't use is just extra. It's extra

profit for them. But the advantage is

when you turn it in, you don't have to

fill it up because so think about this.

They create a fee to avoid a fee

because if you turn the imagine I had a

rental car company, I could just say

turn turn the car in with whatever

amount of gas you have and I fill the

car back up and that that could just be

factored into my price. But instead, or

I could just say, "We fill it up at this

rate. Whatever you don't fill up, we'll

fill it up and we'll charge your card

afterwards." That would be an easy way

to do it. But instead, they say, "We're

going to charge you more. We charge you

$5 a gallon or $10 a gallon if you turn

the car in with less than full gas.

If you turn the car in with less than

full gas, but then you prepay the whole

tank, then you still bought the whole

tank to avoid paying the fee that

they're then also still going to fill

the car back up again. Again, like I say

this so that you can understand the the

thought process that went into

structuring the sales process. Like

there's a reason these guys do billions

a month in sales. And for those of you

who are like, "Man, I don't like this."

the rental car industry wouldn't exist.

They actually run very thin margins.

Like there's there's, you know, I mean,

like it's not like they're they're

raking it in here. There's people who

crash the car. There's a lot of other

costs that go into running a car. And so

for you, you cannot shy away from

capitalism. I mean, if you want to be a

business owner, you have to make a

profit in order to be able to scale your

business to help more people. And if

they did not make this profit there, it

would be a wild inconvenience for us.

Now Uber then exists later, much later.

uh that can sort of help, but still

having rental car company there is nice.

Okay, finally there's damages. That's an

implicit upsell. If you scratch the car,

you got to pay. All right. And then late

return yet again, they invented the

line, then we had to pay for it. Okay.

And so these are all the offers that

they offered to me in that one

conversation. And so for those of you

who are afraid of making a second and

third and fourth and fifth offer, did it

seem like she's like I was annoyed? Not

really. And also, what is the price I

have to pay as a business owner? What do

I get? If the cost is that one out of 20

customers gets upset,

one out of 20 people is just crazy.

Period. If you deal with general

population for those business owners who

do, I came from Genpop, so I get it.

There's just crazy people. And you don't

want to not make offers to 19 out of 20

sane people because of one crazy person.

And so the cost would be maybe you don't

have a business or you don't make a

profit or you have one out of 20 people

who complain. To me, the trade is clear

and I'm still going to make the trade.

And so my goal is that you walk away by

the end of this book and training with

eyes tuned to finding money models. All

right? And understanding what makes them

work. And studying some of the biggest

brands in the world will become an

endless learning experience for you.

Which is what I absolutely recommend is

look at their money models. If someone's

been around 30 years in the same

industry, they have figured it out. Look

at what they do. And the cool thing is

you can take things from rental cars and

apply it to insurance. You can take

things from here and apply it to to

teeth whitening. Like it doesn't matter.

You take this from here and turn it into

plumbing. Like they all the these models

are more psychology in terms of how they

work and get and are persuasive than

they are industry specific.

So that's my rental car story. So, uh,

Jim Launch, just to give you an idea,

when we went from $1,000 in my bank

account to $17 million in profit in 20

months. So, remember, December 2016,

$1,000 in my bank account, 20 months

later, $17 million in profit. The only

way that happens is through having a

money model. And it only scaled because

insanely fast because of our insane

customer finance acquisition. So,

remember level two was uh, sorry, level

three, it should say level three is two

times CAC, right? It should say level

three. Okay, so this these were our

actual metrics. So people don't share

this. This was these were the actual

metrics is that our 30 gross profit was

6K. Our CAC was 500. Our 12-month gross

profit was 48,000.

CAC

48,000 CAC. So if I have an investment

for you and you pay me $500 and I pay

you $48,000 back at the end of the year,

is that a good investment? Now, what if

I said you can do it as many times as

you want? You would put as much money

into that machine as you possibly could.

Now, the real question is, what's your

budget? If I said, "I've got this ATM

machine. You put $500 in and then

$48,000 comes out." Would you budget

yourself? Would you say, "Hey, I'm only

spending $5,000 a month on this." Of

course you wouldn't. That's why the idea

of marketing budget is ridiculous. If

you design a properly designed money

model, you can outmake the budget. And

then the budget doesn't matter. The

point is to spend as much as you

possibly can within KPI. KPI meaning key

performance indicators. All right? And

so our 30-day GP CAC was 12 to1. So

within one month, if I spent $500, I got

$6,000 back in the first month. So I'm

making money making money. And so this

was the this is the actual this was like

the offer stack for Gym Launch. So front

is we had a free book, lead magnet

podcast. That was the front end. All

right. So we got people into our world

to see what we were about. Then the

second offer we had was a free strategy

call to apply the stuff that they

learned here into their business. So,

we'd say, "Hey," and the way that we did

this was, uh, we said, "Listen, leave

your card at home. We want to help you

out, and if it's a good fit, we'll

invite you to another call." That way,

it was low pressure. I'd say, "Leave

your card. Don't worry about it." Then,

we'd um we'd do the second call, and

then we'd offer the the $16,000 thing,

which was 16,000 fill your gym

intensive. So, that was our premium

offer uh with very attractive payment

terms. So, they could put $1,000 down to

pay $1,000 a week, which no one did. And

to this day, to my knowledge, no one

else ever has done. And the reason we

could do that is because we actually

made them money.

And so most gyms couldn't afford the

$16,000, most of them. But we could make

them more than $16,000 in their first

month and then they would pay for it. So

I just want to get as many people to say

yes because I knew we could crush it for

them. Now offer three was a supplement

selling secrets course or training. This

was free. All right, that was cool about

this. So it was free. All we had to do

was get them to buy products. We'd give

them the training for free and then we

would get them to sell the products.

When I say get them to, I just like we

explained how they would make more money

selling these products and why they were

specifically made for gyms. And so I had

price protection that no other company

would offer. They got to use basically

backdoor links for their customers so

that they were the good guys rather than

me being the good guy. So like one of

the things that I hated about other

brands was like I would sell at this

price, but they would compete against me

online. So I would get them the customer

and then the customer would switch to

them. And I hated that. And so as a gym

owner because I'm like I'm paying for

this cost like I'm just transferring

over to another brand. That feels bad.

And so what we did was we said, "We're

going to be priced here online. You can

offer this price in store and then that

way people will always keep buying from

you." So I made that advantage and

obviously we just made the economics

work for us on the back end. And that's

how this the supplement company started

the first month doing 1.7 million a

month because we actually solved the

problem for gyms. They didn't have to

carry inventory. We would do it. We

allowed them to sell subscriptions

because we would deliver on it. So we

solved all these problems that I wish I

had had as a gym owner. I made a company

that would solve it.

And so then the fourth thing we did was

we did a free feedback call. So, this

was basically saying, okay, you know,

you're halfway through, you're eight

weeks in. Let's let's talk about, you

know, where you're at. How much money

did you make? Cool. So, what we did was

a free uh free with commitment offer,

which is something that we'll talk about

in the fourth section of this training,

which is continuity offers. And so,

basically, what we would say is, hey,

you have 16 weeks, you're eight weeks

in, say yes now, and I'll give you all

the the stuff that you're going to get

over the next three years if you say yes

today, and you'll just keep paying your

existing thing. So, you're just going to

get more for nothing. And at the end of

the six weeks or so, end of the eight

weeks, uh, the next eight, right? 16

total, eight halfway point. At the end

of the next eight, it'll just revert

into this cheaper billing that you get

for a longer period of time. And so,

they were currently paying $1,000 a

week. They would say yes, get more

value, not pay more, keep going, and at

the end it would fall down to a lower

rate. And all that the objective of this

bonus was was to get them to agree to

continuity on the back. Specifically, a

higher level of continuity because we

had a kind of built-in continuity, which

was super cheap. That was like, I think

500 bucks a month, something like that.

But what we wanted them to get to was

the $3,200 a month level that uh that

the upsell um offered. So, that's how we

got so many people to say yes. And to be

fair, that's how we um did it for years.

No, it doesn't have to be complicated.

If anything, simple scales. So you want

to have as few offers as possible that

allow you to make the most gross profit

possible in the shortest amount of time.

All right. So understanding how to do

this can change your business forever.

So that is fundamentally examples of

money models and what a money model is.

Great. Kaboom.

Now we talk about the four types of

offers that create money models to begin

with.

Four types of offers that create a money

model. Let's dive in. So number one is

how we broke the gym industry and then

we'll go into the four-pronged money

model. The four components, the four

types of offers that exist. All right.

So how we broke the gym industry. So I

used to get gyms fool. So what I just

talked about earlier was my model at gym

launch. But what created this and the

reason I'm telling you this story is to

show you how many different industries

this structure of creating a good money

model works in. And so I used to open

gyms at full capacity on day one. And so

this is a video. This was my first This

video, this ad made me $10 million.

So, it was sick. I was 26 and it was

awesome. Uh, it is how you would imagine

it sounded. Um, honestly, it did feel

like it was something I was doing was

illegal. I found out later it's

completely legal to advertise and make

money. It just sometimes the stars

align. And so, what I would do is I

would go into a neighborhood and you

know, this one I did 191 signups in 19

days at 500 bucks a pop. And this is me

holding up all the $500 contracts that I

had sold like in the middle of nowhere.

All right? And so this is the old way

that gyms worked. And the reason I'm I'm

outlining this is because this might be

how your business works. And in the gym

industry, this is what all the gurus at

the time were teaching. It was something

that they called the LBO model, which

has nothing to do with leverage buyouts.

An LBO model in the gym world was a low

barrier offer. All right? So it's like

trials, uh, super discount things. But

the thing is is I talked about earlier

having a discount thing as the front

end, but then they didn't have anything

else to sell. So the discount stuff

works, but you got to have the thing to

sell to make your money back. But this

is how it used to work. So the old way

that people did low barrier offers was

that they would run trials. So they'd

run $19 months, $21, 21 days, things

like that. And so right off the bat, if

you had 10 people walking the door, two

would not buy. So now you got eight left

who buy a trial or buy the discount

offer at 29 bucks, 19 bucks, $21,

whatever. Now this guy doesn't convert.

This guy doesn't convert. This guy

doesn't convert. This guy doesn't

convert. This guy doesn't convert. We

get three because the industry averages

35% of trials would convert. So not 35%

of people who showed up, 35% of people

who started the trial. So being being

generous on this one, three out of the

eight continue on. All right. So this is

what the math looks like. So 30 days

later, our total gross profit is $600.

Our revenue per show up

is $60. Our revenue per trial 75.

Okay,

this is what we did.

So we would get 10 people in the door.

Now we would know now we closed fewer

off the bat, but we would sell to goal.

So we'd get one person to take a 2K

package. the majority of the other ones

to take, you know, $500 type program and

then somebody taking half that distance

of the $2,000 person. All right, so

that's layer one. Then we would upsell

meals because they're going to want to

have food. Then we would upsell

supplements on average $85 of gross

profit per person, not revenue, gross

profit. And then we'd get these two

people to commit to a year after their

duration of their program. And then we

get them to prepay for the year with

another discount on the back. And you

could do all of this in 30 days.

And so our total gross profit was 9644.

Remember the old one? 600.

96.44

revenue per show $960 compared to 60

revenue per close 1928

in the first 28 days. This is how we

broke the gym industry. When I say

broke, I really just mean fixed. We

fixed the acquisition model.

And so that's the math comparison. And

so with the new way, my gyms could

outspend gyms doing the old way 25 to1.

It wasn't even like coming to a to a

fist fight with a knife. It was coming

to a fist fight with a B-52 bomber. Like

we weren't even on the ground. We were

just dropping bombs. Like there's no

there was no way to compete. And a lot

of big franchises didn't didn't catch up

and basically went out of business or

became just like ghosts. like people

just didn't renew and they're just kind

of like they fizzled out and faded. And

so like this is also a message to the

people who who do lead industries. I was

a young kid and I had this model and the

right move that they should have done

competitively was take all my and

immediately disseminate it. That would

have been the right move. That's what

Zuck did with Snapchat and they had

their stories. He just immediately like

I'm going to take that distribute it

immediately. but instead they postured

against and were like this guy doesn't

know what he's doing and we ended up

just destroying them because the math's

the math like you cannot like that you

didn't innovate it but you can't execute

on it and so one thing that I also want

to break in terms of perspective here is

that as much as you may not like it a

business model is not patentable it's

not IP an offer that you may create a

great headline a free sixe challenge not

IP anyone can advertise an offer and so

it's a double-edged sword in terms of

learning this power because it is a

speed game because basically you want to

advertise the stuff. You want to rip as

much money out as you can before the

rest of the world catches up. And then

guess what happens when the rest of the

world catches up? You do it again. You

innovate the model again. And so there's

always going to be followers, there's

always going to be leaders, but the

thing is the leaders get to make 80% of

the profits because by the time everyone

else catches up, we already pillaged the

land. using a more, you know, violent

terminology. You know, we we we seeded

and farmed the land and we reaped the

the fruit of the the land that it gave

us, whatever. You get the idea. Okay.

So, uh this was the this was the thing

that broke it for them. So, boom, we had

service. We sold the goal. So, we sold

way higher ticket instead of doing a $21

thing. We sold uh nutrition and

supplements. We sold continuity. And

then we did prepayment. So, all four of

these things we did in the first 30

days, and that's how we could drag the

cash forward. All right? And so if for

some reason someone didn't buy the first

offer thing, we had a down cell flow. We

sold to goal, then we sell a smaller

package, then we sell a free trial with

penalty, then we sold a free trial with

no commitment, and then we did a free

orientation. And so what I mean is like,

let's say somebody didn't want to do the

free trial.

So for example, these these people, they

didn't buy any service, but how do we

get money out of them? We said, "Hey, no

worries. Why don't you just come for a

nutrition orientation? We just want to

help you out for free." people come to

nutrition orientation not having signed

up for the gym and we'd sell them 300

bucks in supplements. So, we still made

money from nose by selling them a

different way to get to their goal. So,

that was the downell flow for service.

For supplements, we would sell a full

subment bundle, then we'd sell a fourack

uh with extras. So, we'd add a couple

pieces in, then we'd only downell just

to a fourack. Um, and then we'd have it

on continuity, then no continuity, then

we'd do extras only. So, we'd work our

way down that whole thing. And then the

meals flow, same deal. But we'd work our

way from biggest all the way to

smallest. And then continuity, we'd go

again, sell to goal, smaller package,

and then monthtomonth. And then finally,

the prepayment is we'd prepay the whole

package, prepay for a discount, prepay

the next month, and then we just get the

commitment to say, "Fine, you're in

continuity now." And all of this, if

you're looking at the days, this is day

21 to 28, 14 to 21, and these this is

upfront. This is within 48 hours. So all

of these things are happening fast.

All right. So that is how he broke the

gym industry. So now let's talk about

all the things that I just did, but

we're going to chunk up so you can apply

it to any business. All right. So

there's attraction offers, upsell

offers, downell offers, and continuity

offers. The objective of each of these

attraction offers is to liquidate how

much it cost you to c get a customer.

Upsell offers are to maximize profit.

Downell offers are to maximize

conversion.

Continuity offers are to stabilize cash

flow in the business. There are many

ways to accomplish DFA. Some businesses

can do it with only one offer. Some

businesses get funding so they don't

need to break even to get customers

because they have outside money that's

injected into their system. But for

everyone else, probably you watching

this, I will explain a model that I have

seen emerge over and over and over again

within the businesses that I built. So

when I look at every single amazing

business that I've built that's made a

lot of money, they had these things

pretty much in this sequence. And it

doesn't happen all at once. It just

often becomes something that you build

towards. So to be very clear, I'm not

saying you start with a fullyfledged

money model because it will break your

whole business in half. You want to

start with one. you start adding in

layers like layers of paint. You just

keep putting more and more layers on it.

And so again, you can build an amazing

business with just one or two of these

things. And sometimes it's worth keeping

it simple and just doing that. If you

can scale with I want to scale with as

few offers as humanly possible, but I

still want to maximize how much money I

make in the shortest period of time. So

if I have to add more, I will to enable

me scaling, but I want to have as few as

I can because I want to have as little

operational drag as possible. All right?

And so it has four prongs or four

different vectors and different offers

that correspond to each objective. All

right? So this beautiful little image

took me a very long time to figure out,

right? And so we have attraction offers

that bring people in the door. We have

upsell offers that typically happen

immediately after that get people to buy

more stuff. We have downell offers for

people who who don't say yes to either

of these things so we can still get

conversions then potentially upsell them

later. And then we have continuity

offers on the back which get them into a

recurring cash flow payment to the

business. And so let's explain how they

all work together to make a symphony of

CFA. All right. So here we turn

strangers into customers. Get come to

spend more money.

Lower CAC is to get people, excuse me,

is to get people to say yes when they

would have said no, which is what you

offer when they say no. And then

continuity, you keep people buying. All

right? Which is meaning you get them to

buy again. All right? So those are the

four prongs. And so like I said earlier,

this is just showing it through that

same model, the gym model. So, we

attracted we used the books and the lead

magnets and the podcast, things like

that. It's free. Then, we sold them an

upfront cash thing. Uh, so we generated

upfront cash with the next sale with the

uh the uh 16 weeks. Then, we would

maximize profit by getting them to

upsell supplements, then sell our

supplements on our behalf. And then we

built continuity, which is the

three-year licensing, which is the

42,000 a year. And note, I'm not saying

that you have to use all four. I'm just

saying I noticed that my most successful

companies did. And many companies, you

only use one or two. Okay? So, let's

look at the model that I showed earlier

with weight loss. We had a free promo,

get people in. We got cash by selling

challenges that they could get their

money back or sell to goal, either one.

Then we would sell supplements. Then we

would sell memberships

all the way through rental car 19 bucks

a day gets me in the door.

Then pretty much everything was upsells.

So these kind of all happened at once.

So I'm saying like this is just a model

like it's it's more about the business.

So, we had all the insurance, the late

pay, the late payback, the gas, the

upgrade in the car, all that stuff. All

right? And then continuity is where they

say, "Great, do you want to enter our

rewards program?" And so, great money

models can include multiple in the same

business. So, you can notice here, like

there's some here, there's multiples

here. There was insurance. There's

multiple upsells. So, it's not like you

only have to have one, you can have

multiple things there. Through the rest

of our time together, I'll show you

genius ways that other entrepreneurs

have stacked and recombined these things

to make lots of money. And I will only

show the ones that I also then used

modeled that in my businesses and what

we did. All right,

kaj four types of offers. So with that

being said, we will begin our ride along

apprenticeship, which is the next one.

All right, so we covered how businesses

make money, the three prongs of client

finance acquisition, the three levels of

advertising that create the best version

of CFA, how money models work, the four

types of offers. Now we begin our ride

along apprenticeship. All right. So we

transition to the ride along. Simple

skills are easy to teach. Some skills

are complex skills that have many skills

bundled within them that take longer to

get a big enough sample size to be

proficient. So for example, if you're

looking at deals, it takes a very long

time to see lots of different deals to

be able to recognize patterns. Takes a

long time to look at lots of different

surgical cases of different patients to

be able to recognize patterns. And so

it's more that the larger meta skill of

pattern recognition takes a longer time

to learn. And that's typically why

people work with an expert for periods

of time in order to get that skill set.

All right? And so advertising and

creating money models are some of those

harder skills in my opinion. It takes

time to see those patterns and to know

what to look for. And the better you

get, the better the student you are. And

so there's three steps to teaching as I

see it. Document, demonstrate,

duplicate. I cover this in my leads

book. And so a good teacher make sure

that you do all three of these things.

You document, you demonstrate, they

duplicate. Right? They being well, flip

this. I I document, I demonstrate, you

duplicate. Okay? Now, the problem with

me training like this one to many is

that I can't see you do it, right? So, I

can only do the first two, right? It'll

be up to you to duplicate this. But I

will teach you exactly how I learned all

these money models so that you can get

my first decade of experience in a day

and shortcut your path to your goals.

All right? All right. So, it's me

taking, you know, 10 or now 13 years or

14, whatever, um, and compressing it

into a full day. And I'm going to tell

you the stories how I learned them so

that hopefully you can kind of relive to

the best way possible as though you were

with me. All right? And the reason I

felt compared to share these money

models is I made a very tactical video

with three money models two years ago.

And the amount of messages that I got

from people being like, "I made 50 grand

from that video. I made hundred grand. I

made a million dollars on that video." I

was like, "Oh, people get the offer,

they get the lead stuff, but they're not

they don't understand how to put the

money, how to connect that with them

making a profit and then being able to

scale their advertising through

sequencing offers together." That was

the thing that I didn't know that people

weren't putting together. And I was

like, "Oh." And then that is why I make

these. Okay. So, think of this as

entering my private money models

journal. And so, each of these stories

actually was in a journal of mine that

I've kept for like whenever I see

anything cool, I just write it down. I'm

like, I'll save this for later. Like,

it's kind of like a like a magic card or

a Pokemon card or a like a a play that

you want to pull out at a later time.

Like, they're they're basically like

scratchoff winners. Like, they've

already been scratched off. You just got

to turn them in for money. Like, these

things work. And my notes were scattered

all over the place. And then this book

was me consolidating all of them in one

place. All right. So, the rest of this

book and training will be all the tiny

tactics I picked up that make leads and

offers come together into money models.

All right. So, each money model will

have a visual or digital. They'll have a

description, examples, important points,

summary, and then uh this is me making a

reminder that if you ever find any uh

out in the wild, you're like, "Oh, this

is totally different and not covering

the book." Just email it to me at

valueacquisition.com. I will mention

you. Um if it's sweet, I'm I'm going to

be honest. Like, if if you nine times

out of 10, people are like, "This is

brand new." I'm like, "That's just a

free trial." Uh but

but uh but if you do have something

novel, I will absolutely blast it and

give you all the credit in the world

because I I just want I want this to be

a living thing for Moz Nation. It's just

like this one place that like an

encyclopedia of uh of offers. Okay, for

everyone who thinks this won't work for

my business, want to bet uh every

business can use any of these money

models I'm about to share. I give so

many examples to show you how. So

instead of just saying uh that, just say

how could I use this for my business?

How can I make this work? And you will

find the answer. What would it take? All

right, so here's my big advertising law

man disclaimer. Uh, there are

organizations whose sole responsibility

is punishing businesses using deceptive

practices. You must always observe the

law. Law differs by city, state,

country, and time period. So, at the

time of me recording this, to my

knowledge, the things that we're doing

are allowed in the state that I'm

currently in in the United States today.

I am not saying that you should do

these. These are hypothetical models to

think things through that comply with

your local area and time period if it's

in the future, which it will be if

you're watching this. So, I tell stories

of I learn things under the assumption

that the business owners I learned them

from did their legal diligence. When in

doubt, give people their money back and

just get better. It's less effort to get

another customer than to fix a

reputation. So, I accept zero

responsibility for actions that you take

or don't take as a result of this

training. Do your own due diligence

within the laws of your area and

industry. End time. Huzzah. And with

that being said, this now begins our

ride along apprenticeship.

So we are now officially in our

apprenticeship, our digital

apprenticeship, our virtual

apprenticeship. Let us begin with

attraction offers. So what is an

attraction offer? The free versus

discount continuum in the lineup. All

right. So an attraction offer generates

leads and converts them into customers.

That's what it does. They turn

advertising into money by offering

something free or at a discount. We do

this because everyone wants a great

deal. in a great deal. Customers get far

more value than the price they pay.

Strangers can only take your word on the

value, but they absolutely understand

the price. For that reason, discounts

make anything a great deal to just about

anyone. And the greater the discount,

the better the deal. So, the greatest

discount of all being free. So, free to

discount. Continue. This is a visual

representation of what I alluded to

earlier, but 100% off versus 0% off. So,

this is free. This is uh full price. And

then this is the also lowest demand when

you have full price versus highest

demand which is free. So the more you

move this way, the higher the demand,

the more you have you give off pretty

much. That's how it works. The lineup.

So this is the lineup. These are the

plays that I'm going to explain to you.

We've got our win your money back,

giveaways, decoy offer, buy X, get Y

free, pay less now or pay more later,

and then free with consumption. This one

is not in the book, FYI. So with that

being said, let us begin.

So we start with our very first money

model in the book, which is an

attraction offer, win your money back.

So win your money back is one of these

incredibly sexy offers that I start with

because it's made me more money than any

other offer that I'm going to show you.

Let's dive in. We're going to go through

how I learned it, the description, the

examples, important points, and summary.

All right, so there's my beautiful

doodle that exemplifies what this is.

So, I was in this gym mastermind where I

signed up before I had a gym because I

wanted to learn about the gym business.

And this guy, Danny, uh, said he had a

client uh, say no and then said, "Well,

I'll pay you 500 bucks and you can train

me oneonone and if I lose 20 pounds in 8

weeks, um, you give me the money back,

but I'll let you use my, you know, my

pictures." And so, you know, Danny was

like, "Well, I'd rather take the money

than not take the money." And so he did

the deal. The dude got amazing results.

And the thing is is that once the guy

got amazing results, he advertised the

before and after of this dude. And he

got like 13 more customers from

advertising this guy's results. And so

he started talking about that at this

mastermind. We then took it at the gym

that I was at with Sam and we tried a

sixeek version of it to shorten it. It

was still one-on-one PT, personal

training. And so then I had the idea of,

hey, one, let's see if we run ads for

this instead of just being like a thing

that we tell our customers. And two,

what if we made it large group instead

of personal training? And so those two

changes took this from this is a

profitable thing to this being a money

nuclear bomb. And so we then switched it

to uh free and non-free versions with

creditback and money back guarantees,

which I'll explain in more detail. All

right. So that's how I learned it. And

it was an iteration. I mean, this was

like a year, two years before we learned

every single thing that I'm going to

share with you in like 8 or 10 minutes.

So, now that's how I learned it. Let's

go into the description. All right. What

does this thing even mean? So, a win

your money back offer works like this.

So, you set a goal for your customer and

then you tell them how to reach it. And

if they reach it, then they qualify to

get their money back or get it back as

store credit. And so, there's kind of

three versions of this. So version one

is you just they bet that they're going

to get results. They bet that they're

going to take a certain set of actions

or they bet that they're going to do a

combination of both. And so let's walk

through each of them. So with results,

no matter what they do, if the customer

gets the result, then they win the money

back. So for example, making X dollars a

month, getting Y customers, losing Z

pounds, so losing 20 pounds. You can

starve yourself, not show up to

anything, but if you lose 20 pounds, you

get the money back, right? Basically,

they bet on their ability to just reach

the goal.

The second version of this is that you

hold them accountable to doing actions

instead of getting results. So no matter

what results they get, if the customer

does what you tell them to, then they

qualify to win their money back. So for

example, they attend all sessions,

calls, meetings, they log progress, they

take pictures, they do assigned

homework, they bet on their ability to

follow directions. That's the bet. or

you do both is that they they have to

both follow your directions and they

have to get the goal. Now the thing with

both is often times a customer doesn't

have the skill to reach the goal which

is why giving them the directions and

tying them both together can be

important to getting them the best

results possible. As an aside you want

to tie the actions that you require them

to do to qualify for the refund with the

actions that do two things. one that

advertise your business and two that get

them the best results.

All right. So, what ends up happening

with the win your money back offer is

that it becomes a high cash flow

choreographed onboarding. So, if you

currently onboard customers, then you're

not getting paid for it. It's a cost to

your business. And so, I would rather

make it a revenue generator for my

business. And so, the nice thing is that

it works even for people who don't come

in for free offers. So this offer works

so well when people came in just because

the referrals and whatnot. I still gave

them this offer because people got

better results. They were more invested

and it was fun. And so we got better

results out of this than any other

program. And so a lot of people think

that we made the money on the people who

didn't hit the goal. Couldn't be further

from the truth. The people who didn't

hit the goal a lot of times they would

necessarily want to become customers. We

had 78% success rates of people hitting

their goal. The magic was again I didn't

wait till the end of their program

anyways. I would be selling them,

upselling them at three weeks into their

six week thing. And so I'd say, "Hey,

you're down 12 pounds.

If you lose eight more, you're gonna be

happy forever." They would be like,

"No." And you're like, "Okay, well, you

want to lose 50, right?" They're like,

"Yeah." I'm like, "Okay, well, so you

realize it's not about these six weeks."

They say, "Yes." I'm like, "Great. Then

you won the challenge as far as I'm

concerned because you realize it's about

a lifestyle change, not a six week, you

know, weight loss thing. I just use that

to get you in. But what I really want is

for you to make this big change. And so

if you're good with it, what I want to

do is take this money and I want to give

it to you back to you as though you've

already won and let's just credit it

towards the main goal you have. And so

by doing that, we could take the

short-term goal and flip it into the

long-term goal.

And so this particular model of

acquisition, this offer, um, works well

with businesses that require customers

to do a lot in order to be successful.

And so there's some businesses where

like you work on the roof of the of the

of the house, the house gets fixed.

There's really not a lot for the

customer to do there. So the win your

money back not the right money model for

that. If you have a business where

someone has to take action in order to

see results. This is very common in

service businesses sometimes even in

software business. They need to onboard

themselves. They need to put their

information, put their profile picture

up, whatever it is. This structure

murders. And so the bottom line is

customers put money down. If they do the

stuff or they get the result or both,

they get it back as cash or store

credit. That's how this works.

So let's give some examples here. So if

you have a rehab facility, it would be

like the free kick that habit in 28 day

blueprint or free kick that habit insert

word. The suggestion attend all your

rehab sessions, post in the group once a

week, journal daily in our app, attend

your feedback session, in your

transformation session, which are both

sales and upsell opportunities. So

earlier I said you want the actions they

have to take to be things that get them

results or things that advertise your

business. The third category is sales

appointments. And so you want it to be

mandatory that they attend the upsell

opportunities that you have. So remember

earlier I showed the five different

places. Then you make each of those

places that they must attend.

And so the result maybe for these would

be like pass a urine test at the end in

28 days. That's the result. Like if

they're they're clean, awesome, right?

And so this would just be a pure

resultsbased thing. Okay. You could add

in these pieces to make it action and

results. Let's say in a pain relief

business. So 28 day oneonone pain relief

program. Fine. The commitment is that

you attend all your rehab sessions, do

your at home stretches, post a picture

in the group once a week. When you're

done, attend your feedback session and

transformation session. Very similar,

but now it's just about them doing that

and not at all about having the pain

relief because this is one that's a

little bit more subjective. So it might

be unfortunately people are uh not

always ethical when it comes to their

own money. And so we say, okay, them

saying, well, I went for it. I'm still a

10 out of 10 pain and please give me my

money back. So this way if you have them

do all the stuff that becomes the the

the requirement for earning the the

money back. Example marketing. So let's

say you uh you teach me how to market.

You say okay free five clients a fiveday

challenge. Uh the action you have to

take is you have to send a 100 outbound

messages per day and attend the daily

training post in the group uh once

you've done your homework. And the

results is make five closes. And the

goal is that you have to make five sales

and you have to send the DMs. And if you

do both you get the thing back, the cash

back. Right now you're like how does the

free thing work? I'll explain how you

can do free with money down.

important points. So, when your money

back works with new, current, and

previous customers. So, somebody who's

new can come in and take this offer. You

can just offer it to your existing

customer base because that a lot of them

get really interested in it. Uh you can

use it with past customers. It works for

any type of customer. Uh it works well

with people that that start and quit

stuff or services where people are

required to do a lot of work. The key is

that you have to have something else to

offer on the back end that they can take

that cash and credit towards. All right?

Right? So that $500 or whatever amount

of money you want to charge for the

thing, you then should have something

that's five times more expensive on the

back end so that they get a 20% discount

on that by crediting it forward. Now, if

you know that you're going to be giving

a 20% discount, guess what you can do to

your backend price if everyone comes in

on one of your money back? You can raise

it by 20%. If every person comes in on

that, if people don't come in on that,

then that gets more difficult. And so

the reason that I even people who came

in for via referral, I still put on the

one-year money back is because I knew my

pricing and everything else was dictated

off of this $500 credit I knew I was

going to give them.

If you don't like the idea of giving

cash back, you can also advertise it as

store credit. So you once you get it,

you can credit it forward. And so that

does create, I would say, a longer term

customer. Um, it makes the free part

different. And let me explain the way

that I made it legally free, at least

within the laws of the United States,

based on the council that I had, was

that I had an unconditional money back

guarantee. And so that was actually more

important for me advertising free than

the whole getting the money back, all of

that stuff. It turns out, at least from

the letter of the law, based on the

people that I spoke with and big big

big, you really risk getting in trouble

when you have upset customers. And so

why my first rule of staying out of

trouble is give someone their money back

if they ask for it. It's not worth the

risk. It's also just not worth the

headache. Just give it back. Go get

another customer. That's it. All right.

So I say don't take blood money. Give

refunds if they ask for it. But the

unconditional guarantee basically gave

me two different types of kind of

guarantees. One was performance-based.

If you do this stuff, I'll give you the

money back. But I also said I have a

service guarantee, which is that if for

any reason by the end of this six weeks,

you don't believe that I gave you $500

of service, I'll give you the money back

even if you're at day 41 and 23 hours.

And the thing is is that closed a lot of

people because they're like, "Okay." I

was like, "Listen, the goal like I want

to get you to stay longterm." So if you

don't think that the service is worth

it, you're not going to stay anyways.

And so that made a lot of sense for

people and they're like, "Cool." So from

a selling perspective, ask them if they

want short or long-term goals and you

sell this as the kickstart to a

long-term thing. And so you explain the

benefit of giving external motivation to

teach internal motivation. All right,

these are all very vague and amorphous

words, but in terms of selling, very

effective. And so I would say, hey, when

you were a kid, you probably had to have

your mom say, "Hey, you got to go brush

your teeth, Timmy." And you'd be like,

and you go there and you brush your

teeth, right? And now that you're an

adult, do you brush your teeth? And

they're like, "Yes." It's like that's an

example of something external being the

reason for you doing an action until

eventually the internal engine kicks

off. That was my analogy. It's like so

that's exactly what we're going to use

this money for in the beginning to

create a new habit. Now our thing was

six weeks. You probably heard 21 days to

make a new habit. We double that length

so you can make this into a habit you

stick with. We use the external to get

you going, the internal to keep you

going, right? And so that's the

toothbrush story. Create habits that

don't take effort. And that's what we

try to build with these types of money

models. And so, as an aside, when

crediting the people uh on the back

rolled into service over an extended

period of time, so this is a pro tip.

So, for example, $600, I wouldn't say,

"Great, now you have three months free."

That didn't work. I did that for a year

and it almost killed me. Instead, take

the $600 and extend it over the year.

So, you say, "Great. So, we're going to

sign you up for this year-long

membership. That's going to be $2,400.

That's $200 a month." Take the $600 off.

Now, it's $1,800. Reverse it back out.

So, you're basically saving $50 a month

by using $50 for that $600 credit for

the whole year. And by doing that,

basically, I got the cash up front and

then they paid me again. How to create

your win your money back criteria. So,

this is key. So, these criteria make or

break the offer. And so, good criteria

have these characteristics. Number one

is they're easy to track. So, you want

to train them on exactly what they need

to do or they will mess up. All right.

bonus points if people already do it.

For example, phones already track steps.

That's something that if like if you can

use that, then that would be an easy

thing that they already do. Word

processors, for example, already track

word count. Uh cameras automatically

date photos. So, these are all things

that already occur. And so, the more

magical you can make the tracking, the

easier it is for them. The second thing

is that you want customers to track

stuff that is likely to get them

results. And realistic criteria do just

that. So if you think the criteria look

too easy, you've probably got close to

realistic. All right, they may take a

few times to get right, but so does

anything worth doing. All right, so for

example, it could be, you know, attend

meetings, workouts, watch videos, etc.

Just whatever the stuff the best

customers do to get results, make

everyone do it on purpose. So this is

the process. You do this at the

beginning and have no idea. You then

find people who get results. You look at

what they did. Then you say, "Everybody

has to do the stuff that the best people

did." And then you do it again. You look

at the people who did the best results

of that stuff. You say, "Great,

everybody has to do that stuff." And you

look for the common factors or the

fewest things they all did, not

everything they all did. And the third

is advertising the business. And I'll

have two parts of this. So one is

advertising publicly. The other is you

basically selling uh being able to sell

them. All right? So I like using this as

criteria. So that means that like when

you work out at my gym, you have to post

it publicly. Now, that means that if

every person's working out three times a

week over six weeks, I'm gonna get 18

free organic posts from a hundred

people. I'm going to get 1,800 organic

posts in a tiny market all saying the

same words that I told them to say with

a link to our thing. And guess what

would happen? We got more customers. And

at the end, what would they have to do?

Post a picture of their before and

after. And then when they post the

picture before and after, guess what

that did? Brought more customers. And

guess what that also did? More people

would comment on all their posts and

they had to tag me in it. And so I could

have all of these leads across all these

comments of all these people who liked

and said that's amazing. What gym is

that? Whatever. So they tagged me, they

tagged my business, and then they had

the copy that they had to follow for the

structure for those posts. Again, you're

going to give them their money back so

you can have some stuff that's in it for

you. And this kind of falls under the

reason why. People like, why are you

doing this? If you give all the money

back, because again, the person who's

buying this should believe they're going

to get the money back because they

believe they're going to follow through

with. So like, what? What's in it for

you? And you're like, dude, I'm going to

get way more customers than you. Two

things. I want you to stay and I want

you to bring me friends. And if I get

you results, you're going to stay and

you're gonna bring me friends. That's

how this works. The fourth piece here,

which is kind of like part two of the

advertising, is that you include the

sales appointments because that's going

to allow you to get referrals, get

testimonials for the before and after

pictures, uh, and then obviously upsell

your other levels of service. So, here's

how you apply the store credit. This is

important. So, when customers win their

money back, offer to apply it over a

longer period of time or a bulk package.

So it doesn't like you can have them

prepay for a year and have them take it

off. I usually have stuff that's five

times more expensive as the upsell off

the front end. That way the max I give

is like 20% off. All right, that's if I

didn't change my price. Ideally, like I

said earlier, I bump it by 20%. In my

experience, this keeps customers engaged

and makes you more money. Because if you

just give it free, I noticed that

people, it's I hate the quote, but in

this particular example, if people

didn't pay for the membership, they

stopped coming if they just used off

credit. and then when their first real

bill came, they'd be like, "I'm good."

But if they had to start paying even at

a discount, they ended up coming. They

kept coming, right? And that was the

that was the thing that I found out

because if you have a business where it

takes work for someone to do it, then

it's like you want to have them have

some skin in the game. And that was

actually the term I used in the sale.

Like, we need you to have some skin in

the game. And I also told the story I

just told. So, like, why don't you do it

up front? I'd be like, because honestly,

when people did it up front, people

didn't come. And you want you want this

to work. I want this to work for you.

So, I'm happy to give you the discount

and apply. you're still going to get

this money. Uh we're just going to put

it over for a longer period of time so

that you stick with this because that's

what you're right. That's what you want,

right? Okay, cool. Um now, if someone's

like, "Well, I want the free time and

I'm definitely going to stay." That's

like, "Cool. Then sign up for a year."

Like, if you know you're going to stay,

then don't worry about it. It's not for

free. I'll give you the first three

months for free. This is how it works

mathwise. So, you have a product that

costs, let's say, $200 a month. A

customer wins $600 of credit. Avoid

giving them that stuff up front.

Instead, apply the $600 over 12 months.

So, 600 divid by 12 is 50 bucks a month.

They now pay 200 minus 50, which is 150

per month. All right. All right. So, to

be clear, they can use the credit

however they want. It is up to them. If

you want to be ethical and comply with

advertising rules and promises, they can

use it however they want. I recommend

presenting this offer first, right? That

way, they can use it and then I share

the experience I just shared, right? And

so, in-depth details of the upsell offer

are actually in the rollover upsell,

which is later in this training. So,

I'll just leave it at that because this

is more offer structure. The upsell

stuff comes later. All right. So, all

meetings and call calls provide

opportunities to make more offers. So,

make every single meeting that you have

with a customer an opportunity uh to

present an offer. All right? And so,

make check-in meetings part of your

money back criteria whenever you can.

Make all meetings required to win their

money back. Part of that, beyond helping

them succeed, they're also the best

opportunities to make upsell offers. So,

after you've checked in, offer what

makes sense based on their feedback. And

so, these are the three appointments I

had. So, we had nutrition orientation,

which was our before pictures, and

that's where I sold supplements. Then we

had our progress check-in which I made

my membership offer like hey commit to

staying for the next year. Then I had my

transformation feedback which is their

after meeting where I would get after

pictures and then I would make the

membership offer again to anybody who

hadn't already bought and to the people

who had bought I offered them to prepay

it. Here's another pro tip for you. Make

everybody a winner. All right? So you

know this, they don't know this and I

don't sell this upfront. You do not

mention this in the first sale. The

reason I made everyone a winner is that

about halfway through you make your next

offer as though they already won. All

right? And so you lower the customer's

anxiety about failing and then you'll

keep them longer. They'll also love you

more. And so this is what I would say.

Hey, I know you're trying to hit the

short-term goal, but what's your

long-term goal? Okay, that's great to

hear. Uh, you get that this isn't about

this program, but about your long-term

results. So, I'll tell you what, to show

you how much I want you to hit that

long-term goal, I'll credit this program

towards the other one, whether you hit

their short-term goal or not. How's that

sound? So now I actually get them to buy

by reducing their risk of losing the

money they agreed to risk. So I say you

won the bet without having having to win

because you get the long-term goal. So

it's actually a risk reduction sale if

positioned properly. And so at the end

of the program, let the losers win. So

if someone refuses the upsell and then

still fails the challenge, you can still

upsell them again. And the way you do

that is by acting like they won. So I

would say something like this. I would

say, "Don't worry about it. You started.

That's the biggest victory of all. And

even though you didn't hit your

short-term goal, you met ours. So here's

the gate. Even though you didn't hit

your goal, you met my goal, right? Which

was finishing what you started. All

right? So to show you that we're in this

for the long haul, I'll credit your

entire deposit towards staying with us

long term. That you still get your money

back. You still hit your goal. How does

that sound? And so now they're like,

"Wow, these guys are great." And so no,

the point was not to get people to fail.

The point is get people to succeed, get

them to finish, get some momentum, and

then credit towards a longerterm

relationship. So, those are the

important points. Does that feel like

that adds a little bit more context to

how to make this work? Yes. All right.

So, quick summary. One year money back

offer rocks because you get loads of

over cash. You get more customers to say

yes than you would before. You get uh

massive amounts of results for

customers. You get more long-term

customers. They advertise your offer for

you. That gets you even more customers

and make the meetings a part of getting

the deposit back and get great results

for them. And everyone thinks this

business makes money based on the people

who fail the program. No, the real money

is from the people who succeed with it.

and you have something else to offer

them. So, trust me on this one. The more

results you deliver, the more money you

will make. Think long. And so, make the

refund criteria easy to track, align

with customer goals, and helpful for the

business. Only use a win your money back

offer if your refund rate is less than

5%. Otherwise, you need to fix your

product before doing this because you

will risk getting too many refunds. I

also added my unconditional guarantee to

make sure that was super compliant. If

anyone ever wanted the money back, I

just gave it back to them. By the way,

by me offering the unconditional, just

to give you some context, over 4,000

plus sales and five years, I gave two

back. Four unconditional

people winning and then wanting to take

the winning and leave or whatever, like

things like that. Sure. But people who

said I didn't think I got the service,

there was two and I shouldn't have sold

those people. I like arm wrestled them

to get them to buy. Put the store credit

towards another preferably more

expensive offer that you want them to

stay as customers. So give them the

opportunity to. You never want people to

stop paying you. That's the key point of

this whole offer. And to make more sales

and keep more customers, make everybody

a winner. That way, everyone stays

surprised and grateful when you make

your upsell offer. So now my upsell

offer is this amazing thing that they're

grateful for me making the offer rather

than this other opportunity to sell

them. That is the win your money back

money.

So our next attraction offer is free

giveaways. So I'm going to go over how I

learned it, description, examples,

important points, and summary. So let's

dive in. So how I learned this? So, I uh

I was talking to um a business owner and

he was telling me about this, you know,

crazy play that he had that was working

really really well. And I was like, "All

right, well, how does it work?" He said,

"So, basically, I give away a

scholarship for my year-long flagship

thing um if people kind of opt in and

they have to, you know, answer a couple

questions about their business, why I

should pick them, etc." He said, "So

then I do, you know, a countdown and

then I do a drawing um and I do a live

webinar where I, you know, release it

live, sell people on how great it is."

And so after he he he told me, he's

like, "Wait, so I pick the person?" And

I was like, "Yeah, but okay, so you just

give something away for free. Like how

does that how does that actually, you

know, make you any money in the

business?" He said, "Well, the key is

the uh participation trophy or said

differently, the partial scholarship."

And so he's like, "So what I do is I

reach out to all the people who opted in

uh and filled out all these questions

about why they should be eligible, their

pain points, their aspirations, their

dreams, why they should be qualified,

why this is important to them." He's

like, "And then I just do a second

countdown for people who have partial

scholarships uh for them to basically

redeem those. And that partial

scholarship is a discount off of the uh

value that I advertise and uh for my

grand prize, right, of the full

scholarship." And so that structure, I

was like, "Oh." He said, "Here's the

great part. I use the same structure

that I give to the online fitness

trainers so that they do the same thing

when they get customers." So they just

say, "Hey, I'm doing a a one-year

transformation or whatever it is." And

then they have a bunch of people opt in

for it and they do partial scholarships

for everybody else. And so this clearly

became this repeatable framework of

grand prize participation trophy or

grand prize promotional offer. So, you

promote the main thing and then you give

some sort of discount off the main thing

for people who ask for or are qualified

for that main offer. And so, this gives

you an amazing way to generate tons of

leads. It gives you a very cool way to

ethically sell how amazing something is.

Like, if I if I get up on stage and say,

"Hey, I've got this amazing thing. I

talk about how great it is." That's one

thing. Now, if everybody in the audience

knows that they're waiting for me to

pick one of them to win this thing, they

are way more engaged. they're way more

leaning in because they're imagining

them actually winning it. So, you have

kind of a different level of

receptivity, which is what I think makes

this so powerful. And you also get a ton

of goodwill because you're like giving

stuff away, right? So, it's just it's an

awesome awesome play. Now, to be clear,

though, this is this is something that

is so powerful that it is uh legally um

regulated. All right? Because if you do

one of these and you charge for it, it's

called an illegal lottery. All right?

And so like these things work well

enough that the laws had to get made to

uh to show uh how not to do them wrong

way. Okay. So how how does this work

overall? So I'll just read this to you.

So giveaway offers advertise a chance to

win a big prize in exchange for contest

information, whatever else you want. And

then after picking a winner, you offer

everyone else a big prize at a discount.

Um giveaways also go by names by sweep

stakes. He had scholarship. Like all of

these are different terms. They all mean

enter for a chance to win. All right?

Okay. And so giveaway offers um to run

them, one, you just have to pick a grand

prize and a promotional offer, right? So

think your main thing and then your your

uh your participation trophy, whatever.

Uh ask for contact information. Now, the

promotional offer doesn't actually have

to be different than the grand prize. It

can usually be a discount on the main

prize to be clear. Um or just a

truncated version or decreased time. It

can be whatever spin you want, but

typically it's going to be some reason

for it to be a little bit less than the

grand prize and then a reason for them

to buy now, right? Uh we ask for

information and eligibility criteria

like you don't want veterinarians opting

in for a you know um a retailer's uh

conference in Nebraska if you've got

people who are uh whatever veterinarians

in Georgia. Like it doesn't make sense,

right? So you want to make sure that

they're eligible for your core services.

Otherwise, why would you want to give

something away to somebody who could

never buy your thing anyways, right? So,

you can still create eligibility

criteria in order to get the giveaway,

including questions or actions or

anything you want them to add somebody

to a group or post something like you

can put as many criteria as you want or

actions for them to take in order for

them to be qualified. So, then you put

the giveaway on a deadline. This is

super important because if you don't

have a deadline, then like well, I mean,

all marketing, right? You want to have

some sort of urgency that drives people

to take action. And then also, and this

is important, when you have the giveaway

and you and you try to contact everyone

else for the participation prizes, you

want to make sure that those

participation prizes and them claiming

those prizes are also on deadlines

because otherwise you'll just say like,

"Hey, you won." And then no one will no

one will do anything, right? And so you

have to have urgency at each step uh to

drive action, which is just normal

marketing stuff, but sometimes you

forget. All right? Now, beyond that, um,

you want to announce the grand prize

winner, obviously. And you also want to

give them the prize, obviously. Duh.

Sometimes I have to say this, like, if

you're going to advertise a grand prize,

you have to give the grand prize away.

Um, and then you contact everybody else

and tell them about the promotional

offer that they are eligible for, which

is like, congratulations, we thought

your uh information was so compelling,

we want to offer you a partial

scholarship. We thought your information

was so compelling, we thought we would

offer this promotional offer that's the

grand prize thing that you said you

wanted. It's like that but better. or

like that but shorter or like that but

cheaper, whatever, right? You just you

say, "You told us all this stuff. We

think you're a good fit and as a result,

we want to give you this offer." Uh,

make your grand prize the thing you want

everyone to buy. All right? So, make

sure you assign a monetary value to your

grand prize to serve as a price anchor

for your promotional offer. So, for

instance, if you sell a five, you know,

$5,000 worth of value thing for $2,000,

then advertise the $5,000 value, right?

Let's say that's the giveaway. Next, you

pick your promotional offer. All right?

So, this is a discount on the grand

prize, a truncated version, some very

small difference that allows you to

charge even less for your grand prize to

people who kind of win the participation

trophy. All right? And the bigger the

discount, the more compelling the offer,

obviously. Um, and so, hint, the bigger

the value you make this thing, um, the

better, right? So, remember, leads enter

the giveaway because they found the

grand price interesting. This is why

this is such a key point is that like

everybody already says they want this

thing. So you don't have to really like

sell them on wanting it. They already

want it. We just need to make an offer

good enough for them to say yes, right?

And so the promotional offer gets you

customers because you offer what they

already showed interest in uh at a

discount. And the discount in the story

I gave was the partial scholarship. All

right? And so you can call your

promotional offer whatever you want.

Free business scholarship, gift card,

voucher, dollars off, store credit,

whatever. Right? The point is is that

you have a main thing and you got a you

got a gift card that somebody can win

that can apply towards it. Bingo, bango.

So, what else does someone need in order

to qualify or opt in? You obviously need

their contact information, otherwise you

can't contact them. You want them to be

eligible because if they're not

eligible, they're not going to be able

to buy anyways or they're not a good

fit. And then I prefer to also, so this

is kind of like how do I talk to you?

Who are you? And then what actions have

you taken that make you more likely to

be either a great customer or more

likely to bring me other customers,

which is going to be a promotional

activity. All right? And so other stuff

interests you to qualify. Um, I add

these to promote my giveaway more. So,

it might be like you have to bring a

friend to my giveaway in order to

qualify to win. That could be a

qualification. It could be you have to

join my group. It could be you have to

share this post. It could be it could be

you have to leave review. Like, there's

a hundred things you could have people.

You could have them do them all. Right

now, the more friction you add, uh, the

the fewer people are going to want to

enter the giveaway. So, it's a little

bit of a a balance between those two

things. But I'll say this in general for

me, if you have a compelling enough

grand prize, people will take a minute

to follow some of those steps to become

more qualified leads for you. So yeah,

other examples could be, you know,

attending a call or event, making a

post, entering a group, right? And the

key here is that we want them to either

promote our stuff more or demonstrate

higher quality of interest, which said

differently is we want them to consume

more of our information so they're more

likely to make a purchasing decision

when presented our promotional offer if

they don't win the main prize. Once we

have all this in place, we put the

giveaway on a deadline to give away the

free thing. So, you make a lot of

razledazzle. Hey, 546 321. This how many

days left. It's gonna be exciting.

Everyone hop on, right? We make it

urgent by making it only available for a

limited time. Um 3 to 7 days I think

works best. I think people's uh

attention spans are relatively limited.

So, I think you know a weekish works

well. Um as soon as leads enter the

giveaway, you want to update them daily.

So, first you let them know how long

they have until you announce the winner.

Um, you can do this email, direct

message, text, social media post and so

on. If you already have a community, you

can do it there publicly and then also

uh one-on-one at scale like via

broadcasts. Um, and do as many as

reasonable once a day across all

platforms tends to work pretty okay. Um,

second, because again, you can do it,

you can get away with once a day if it's

a shorter thing. If you're going to go

longer, I probably wouldn't do every

day. If you're a 30-day giveaway, which

you can do, there's there's situations

where that works. Like, you know, if

you're at 27 days out, you're like, I

get it. You might opt out of the

giveaway by the end of it. So you might

do like I would follow the whisper tea

shout framework that I have in the leads

book um in terms of it's kind of like a

reverse launch but you're kind of

launching a giveaway right now. Second

uh you provide value along with your

countdown. So this is a point that I

think a lot of people miss is you don't

want to just say the countdown. You also

want to be like let me sell you on how

this thing's amazing and how it's going

to change your life which people are

going to be excited about. Like let's

say you give away vacation for whatever

reason. Now we wouldn't give away

vacation unless you're in the vacation

business. I prefer you give away if

you're going to use this play the main

thing you sell. But I'll just use

vacation as simple a simple example. If

I give away vacation because I'm a

travel agent, right? That vacation then

what else am I going to talk about? I

want to talk about the drinks they're

going to have. I want to talk about the

restaurants there. I want to talk about

the weather there. I want to talk about

the beach. I want to talk about the

views. I want to talk about their hotel

room. I want to talk about all these

things. And I can use each day of my

countdown to provide value describing

the grand prize. And so it doesn't seem

like a take when I'm reminding them of

this thing that they want to win and I'm

talking about how great it is, right?

That's the key that I think people miss

rather than just like it's coming, it's

coming. Like that gets tiring, right? So

just provide value along the way. Um

beyond that, uh show everyone the

benefits, right? We just said that. Um

and you want to refer everyone to social

proof. So this is both the benefits and

proof that it's good. So, if you do have

uh that vacation, I'm saying if you've

set other people on this grand prize

vacation before, then it's like, "Hey,

here's John and Sally who went on the

thing to Egypt and they loved it." And

then the next day, here's the rooms and

then here's, you know, Kevin and Kelly

who are saying how the the rooms were

spectacular and how it's the best hotel

room they've ever stayed in their whole

life and they wish they could live

there. Right? Each one of these you want

to pair the benefit with proof around

the benefit ideally. Now, a little pro

tip. Like I said, whisper t-shirt

I have there for countdowns and urgency.

Okay? So announcing the grand prize

winner. Um once you do that, you then so

let's say you've got you do you do a

webinar, you do a big a big rahrh,

whether that's local on a stage, you

invite everyone to a thing, you do a

virtual call, whatever is fine, you do

it in a group. I like to bring everyone

together because it's going to maximize

my ability to sell and convert. All

right? And so um we announce it

publicly, then we message everyone else

privately. All right? This is the key

point. Many will enter, many will win.

That's the key point of what makes this

work, right? And so now, I'm not saying

everybody wins the grand prize, but

everyone gets a promotional offer to

apply to the grand prize, which is

awesome. That's the participation trophy

because of the work that they did,

because they were such a great

participant, because they commented in

the group, because they shared, because

they told you a good story. You can use

whatever because you want, but just give

them a reason for why they're getting uh

the voucher, the store credit, the gift

card, the discount, whatever you want.

Let them know. email, text, direct

message on that uh big webinar

presentation. You can also do the same

structure which is people get on and

then afterwards you can say hey I saw

you on there and you can have your own

team or if it's just you messaging them

saying hey I think this would still be a

good fit for you I want to do a partial

scholarship so I'm going to be reaching

out to some of you guys on this call and

afterwards to get that set up and then

again we have to restart our urgency

because otherwise they're going to be

like yeah I'll do it someday for the

same reason people don't buy and take

action immediately right it's always

easier to just delay things so we want

to drive the urgency

so uh in that message you ask them

schedule a call to redeem the prize. Uh,

and make sure they redeem the

promotional offer. Again, add another

deadline. Okay? Again, 3 to 7 days tends

to work well. And the second one works

like the first. Show the benefits, show

more social proof, more valuable stuff

about the offer. So, I'm going to give

you a little bit of math on how to like

kind of walk through this. So, when

you're explaining the promotional offer

to winners, you want to use like kind of

cost to value using their discount,

their store credit, the the partial

scholarship um that you're giving them,

right? And so my rule of thumb is to

make your promotional offer equal to 10

to 30% of your gross margins. All right?

And so for example, let's say we

advertise a grand prize with a $5,000

value but a $2,000 retail price tag. All

right? So the promotional offer winner

gets uh gets it for 1,800 bucks. That's

10% off retail. All right? But when we

let them know they want the promotional

offer, we explain that they get $5,000

in value for an $1,800 price tag. All

right? Very exceptional. So, if I'm that

travel agent, for example, I might say,

"If you were to book this vacation not

through me, without all the discounts I

can get, this would cost you $5,000 to

do." Now, if somebody goes through my

traditional services, I I might say,

"Okay, well, I can get this thing for

$2,000." Um, and that's what I might be

able to retail for, but my participation

trophy winners will get 10, 20, 30% off.

So, that would be somewhere in the

neighborhood between $200 and $600 off

my normal $2,000 offer. But when I'm

comparing it, I always have my bakedin

efficiencies of what they would have to

do to get this on their own if they were

to just get get it true retail, not

through my services as a travel agent.

And so $5,000 gets discounted or they

can see the discrepancy in value between

5,000 and 1,800. So now it seems like a

screaming hot deal which makes it more

likely for them to take it, right? And

so you can just compare the difference

of a 10% discount to a 64%. Very big

difference. And so we want to talk in

those terms. All right. Beyond that,

bottom line is that remember, everyone

entered the giveaway showed interest in

your thing. If you remember nothing

else, this is the most important point.

We want to sell the hell out of our

grand prize because we want people to

just be super interested. And because

there's a chance to win, so many more

people want to dream about it. They want

to imagine what life will be like. And

so, a lot of the persuasive techniques

because there's a chance at winning it

for free tend to be even more effective

in this setting. Right? Right? So I

can't under I like I can't underell this

value to you. Like this is one of the

things that makes this so powerful. Also

one of the reasons it's regulated. All

right? And so if anybody shows interest

in your thing, you should have an offer

to give to them. That's the point. All

right? And so that's how it works. I'll

give you a couple examples real quick.

So um if I were a dentist, I might do a

pre free perfect smile giveaway. So

grand prize might be a free set of

invisible braces, $6,000 retail price.

My promotional offer might be $2,000

gift card for my braces, right? Okay. Uh

if I have a physical products business,

I might be doing a year of organic dog

food subscription. All right. So, the

grand prize, your your food, $1,000

retail price, and the promotional offer

might be a $300 gift card for food only

usable with a one-year subscription,

right? Or only usable if you prepay up

front. Like, you can put terms on these

things. Um the next is services offer.

So, let's say you have the free ultimate

giveaway for whatever services you have.

All right? So, uh, free one-year

package, $5,000 retail price. Your

promotional offer is a $2,000 voucher

redeemable towards one year of service.

Now, if you have, you know, really

crappy margins, then you're going to cut

this voucher down. That's okay. Um, I

prefer to tend I prefer to sell higher

higher margin uh services. Um, but these

type of things really drive behavior.

Uh, if you had a consulting offer like a

free 16we turnaround, which could be

business, it could be health, it could

be relationship, it could be whatever,

right? So, let's say that's a $12,000

resale price. It's my mega Cadillac

super super duper version. Uh, my

promotional offer might be a a partial,

which might either be half the time or

half the price or the same duration with

one piece removed. No matter what, um,

these things all combine together um,

and make a really compelling offer.

Those are some of the examples. A couple

little details for you. Um, talk to your

law people about law things. Uh, make

sure that they're legal in your area

that how you do it. eligibility criteria

get you more customers to buy the

promotional offer. So I ask questions

like to you know just to get ammo for a

sales conversation. So why should we

pick you? Why this program? Why now? Why

does this matter to you? Why is this

important? What are your goals? Right?

These are all important questions you

can ask in an application that then you

can cipher, you know, go through them

and say, "Oh, these are really good

people." And you can also order the

leads and score them based on who you

think is more likely to buy. You can

also ask for income. You can ask for

whatever you want. Um if your giveaway

doesn't work, say, "Let me just

troubleshoot this for it means your

grand prize wasn't grand enough. So, I

had um I had a portfolio company do a uh

do a giveaway and it bombed and I was

like, "How did they or they told me that

it bombed." I was like, "There like

giveaways always work." Like, "How did

this not work for you?" And they told me

the grand prize was free tickets to

their event, which was like $300 for the

tickets for the event. This is a B2B

business with a like $40,000 thing. Uh

well, like 15 to 40 somewhere in that

range, right? And so I was like, "So why

do we think that $300 of value is in any

way? Like if we're going to sell $40,000

stuff, we need to have $40,000 giveaways

at minimum." And so they reran the

campaign with equipment for uh that

business owner type that was $50,000 of

equipment. And then all of a sudden the

giveaway worked, right? And so like

giveaways are only grand if you have

grand prizes and they have to be super

grand because people have to want them,

right? Um here's a little pro tip for

you. You can give away two prizes for

twice the leads. I'll give you an

example on the next slide. Uh, so this

is from school. So refer a winner and

you win too. So this is really I think

this is sexy as hell. All right. So I'll

just read this to you, but many of many

of you are inviting friends to play the

games with you. And that's the point to

make business fun. To encourage this

even more, we're adding a new incentive.

All right. If a person you refer gets in

the top 10, you get to come too. So they

won prizes. And so the whole point is if

you double your grand prizes, then what

you can do is, hey, I'm going to do this

grand prize winner. But if you're the

person who referred the grand prize

winner, then you win a grand prize, too.

So, let's say in that in that example

with the equipment, I would say, "Okay,

instead of $50,000 equipment, I'm going

to give two $50,000 packages." Or you

can give two $25,000 packages, whatever.

Two big packages. And so, that then gets

every single person who's coming into

the contest to say, "Wait, I can get way

more chances to win." Like, every person

I refer gives me another shot to win.

So, there's a huge incentive now to

refer tons of people and this can

double, triple, quadruple the amount of

leads you get in a giveaway if the

giveaway is good enough. So, again,

these are regulated for a reason. All

right. Um, but this this crushes so

highly recommend doing that if you if

you have the cash or the capital to

double the incentive. I would do it. All

marketing rules apply. So, scarcity

scarcity scarcity. Limit your giveaway

by time, number of entries, or both. You

can run the giveaways for a specific

amount of time like seven days, a

specific number of entry, like 5,000

entries, or both. I like both. Now, I

want to be clear. How would you use the

scarcity part? Well, I tend to limit

scarcity based on how many people um I

have the time and resources to connect

with. So, if I don't have the team to be

able to actually reach out to more than

200 leads, then I want to I want to put

my my qualifications as high as possible

and I want to limit uh the amount of

entries to 200. That also increases the

chances of winning, which makes it even

more attractive for people to enter. All

right? And so if you c if you don't even

have the bandwidth to do more than 200

contacts, then cap it, right? And if you

can't do it, you can't reach out to

those to 200 leads in in any more than

seven days, then it's like cap it at

seven. 207 done.

Which leads the next one urgency,

urgency, urgency. Right? So I add

urgency in three places for giveaways.

Number one is to enter, number two is to

claim, number two, three is to use or to

um to use the the thing. is even once

you have let's say a scholarship that

you give away or once you give someone a

vacation give them a time period to use

it in right because you want them to

actually consume it because big picture

even for and most importantly for all

the partial scholarship winners uh this

is important because you want them to

start you want them to become customers

you want them to buy right and so this

basically aligns with the three actions

we need them to take and so we put

urgency around each all right and make

it clear in the advertisements how that

works so once you announce the winners

let them know how long they've a claim

and when they do, schedule their call

the next week if you can. And then once

you let them know what they want, tell

them how long they have to use it. I

like hours personally, but I've gone up

to 5 days in short, just always have

deadlines. So, this is another another

little interesting tidbit um on a little

more advanced thing that I've learned

over the years, which is when you have

the participation trophy winner calls,

when you have the promotional off,

basically calls for everybody who didn't

win, but you still want to get to buy

something, right? At the start of the

call, let them know that they have two

ways to use their partial scholarship,

their G voucher, their gift card, their

credit, whatever. All right? And that

you'll help them find which way makes

the most sense for them. And then offer

the discount on the grand prize thing

first. If they take that, awesome. If

not, then offer the same discount by

percentage on any other product that you

have. That makes sense. So, using the

dentist example earlier, I might say,

"Hey, the grand prize is the full teeth,

and you're going to get $2,000 off

that." Now, they might be like, "I can't

afford that." We might say, "Well, you

know what? 80% of your pictures are

going to be your top teeth, not your

bottom teeth. So, why don't we just do

braces on your top teeth for $3,000 and

I'll give you a,000 bucks off that,

right?" And so, that way you can have a

back pocket offer for people who still

obviously want to improve their smile.

They still want the main thing, but they

might not be able to afford it right now

or might not be right for the business

right now. And the key is to just

discount by the same percentage. just

that way they don't feel like they're

they're losing out on their partial

scholarship. Okay. So, if uh if you have

a lot of no-shows for inerson

appointments and that becomes an issue,

um instead of doing mass notifications

for people who qualified, uh just reach

out to them individually. Sometimes that

happens. So, just it basically just need

to do more personalization. And when you

get a hold of them, just let them know

they have to claim the prize. So, if you

have a recurring revenue business, what

you want to do is apply the promotional

discount over the longest period of time

that they'll agree to and then set up

monthly subscription to bill

automatically at normal rates uh after

the discounted period ends. Okay? So,

let's say that someone wins, you know,

um a partial discount for whatever

$2,000 and you normally charge uh $6,000

or let's for simple math. Let's say you

normally charge $8,000. You give them

$2,000 off. That's $6,000 for the year.

So then I would just reverse that into

$500 a month, which then at the end of

the year would bump up to whatever

$8,000 divided by 12 is, right? Um, and

that way you get the recurring revenue

uh on a on a regular basis. And again,

that's you want to spread it over as

long as possible, but you want to

collect as much cash as possible up

front. So if someone will pay six up

front, do that obviously. Uh, but if you

can't do that, then extend it over a

long period of time. This is what I'm

trying to help you avoid. You don't want

to say, "Okay, I'm going to give you

$2,000 for the first four months, and

then you'll start getting build on month

five." Do not do that. It doesn't work.

It sucks. I've already I've already got

the scar tissue to show it. Don't do it.

Just try and spread it over longer

periods of time. All right. So, those

are the important points. So, this is a

quick quick recap. So, at the core, free

giveaways. Ask an audience to apply to

get a high value thing of yours for

free. Many will enter, many will win or

one wins, and then the the rest win

discounts. Uh, you want to pick a grand

prize that people want. It has to be

sexy. You do a bad grand prize. Like do

not be cheap on your grand prize. Two,

give two prizes away if you want more

people to refer. I think a grand prize

should be about the value of your high-c

cost thing. Right now, to be clear here,

the reason this is also valuable is that

if you give away something that you that

retails, that you actually sell for,

let's say, $10,000, then it's really is

only going to cost you maybe $2 $3,000

in terms of hard cost or services to

deliver that thing. And so like that's a

smoking hot like it's not that much

money compared to how much you have to

spend in marketing, right? Which is why

cash giveaways are like my least

favorite type of thing because I mean I

have done them but they they tend to be

my least favorite because they are the

least original. Now the plus side of

cash giveaways is that they are valuable

to everyone, right? And so if you are in

a niche, which I hope you are because

you know who your avatar is, being more

specific and making the the grand prize

around your service allows you to bake

in the difference between what it costs

you versus what the value of it is at a

retail price. And I think that's a huge

arbitrage opportunity. It also makes

doubling the prizes when you give two

away easier because if you give two

$10,000 prizes away that really only

cost you two or three at hard costs,

still works great. Okay. So, uh then you

want to offer a chance to win the grand

prize to anyone who enters and

qualifies. Key point. And qualifies.

Don't just give it to any like they have

to qualify in order to win. Uh and you

get great information from every lead

because you make it part of the entry

process. And this is why I think this is

so magical. People are just willing to

enter pages and paragraphs about

themselves. Whereas if you just did a

normal lead genen campaign, it's hard to

get two or three fields, right? Let

alone here you can get massive

applications with whole life stories uh

built into them because people want to

win something.

So get that information um and then

it'll indicate how your offer will

provide more value to them. And this

becomes it very important for when you

offer your discounted or your

promotional or your participation trophy

offers later.

Advertise your seven uh giveaway for you

know 3 to 7 days or hit the number of

people that you can manage to call in

that time period whichever comes first.

Everyone who doesn't win the grand prize

and qualifies gets offered the

promotional offer. Uh book appointments

to the promotional offer winners to

credit their win towards the grand

prize. Give them limited time to claim

their prize. Then put an expiration date

on people claiming the prizes, making

them more likely to claim it. And if

somebody says no to your main

participation trophy offer, have another

product uh that's probably like half the

price to a third of the price that you

have in your back pocket to make

available to them, right? Um and it

because it may suit them better. I would

just keep the percentage discount the

same. That way they still feel like they

won something. Beyond that, that is how

you do free giveaways. Those destroy

like murder across markets, physical

products, brick and mortar, online, like

these work. So, use them at your own

peril.

So, we just covered win your money back

and free giveaways as two of my favorite

attraction offers. Now, we get into what

I believe is the most flexible

attraction offer that works for just

about any business, which is the decoy

offer. So, same five, how I learned,

description, examples, important points,

and summary. Let's rock and roll. So,

how I learned it. So, John was a mentor

of mine uh at the very beginning of my

career. He had 22 tanning salons and he

would drive me to his lake house uh you

know, a couple times during the summer

and we'd have these three or four-hour

long drives and he would just like

impart life wisdom on me. And John had

lived like an amazing life. He took

basically 20 years off and just raised

his daughters and just went to the lake

and and and shot 16 holes of golf 5 days

a week and just like lived life. Um, and

he had started from nothing. Like really

really cool guy. And so anyways, he was

telling me how his 5day VIP offer worked

at his tennis salon. He's like, "So it

works like this. We offer $5 VIP gift

cards. We put them on people's

windshield. That's how they used to

advertise back in the day. And so people

would come in with these gift cards for

five bucks for a fiveday uh VIP pass to

get tamp. He said the thing is and this

is the key part is that people don't

know how long it takes to get tan. And

so they come in for with the $5 gift

card uh for the VIP pass and we give

them the turkey talk which is basically

if you put a turkey in you can't cook it

in a third of the time by by ramping up

the the temperature. You just burn the

out of it and the inside's

undercooked. And so tanning kind of

works the same way is that you need to

have multiple sessions to get the right

type of tan otherwise you burn, right?

You're like, "Oh, got it." And so it's

like you want to get what shade of tan.

So they would ask that when the person

comes in and then once they knew what

shade of tan they wanted because it'd be

easy to show them, they'd say, "Great.

Well, turkey talk, got it. You're going

to need this amount of time, this many

sessions." And so either you can pay 25

bucks per session or why don't we just

take that $5 VIP and you can pay $19.99

a month. We'll take it off the $19.99

and you get unlimited as you want. and

everybody saw the value and they'd

convert right into EFTs which is

electronic fund transfers which is just

industry term for recurring membership.

All right, so that's the VIP 5day $5 VIP

story. Now fast forward a few years. So

I'm now in gym launch. We're four, you

know, three four years in and all of a

sudden like our ads are not performing

for the gyms and I was like okay we got

to come up with some sort of new offer.

So, I had my team just try a bunch of

different things and I remembered this

fiveday VIP story. And so, we're like,

"Hey, why don't we try this one out,

too?" And so, they tried this out in

five different mini beta groups. And the

winner was this free 21-day

transformation. But here's how it

worked. And so, when someone come in the

decoy offer, this is the $5 VIP. This is

the they think they can get tanned in

one session, but they can't really, is

we'd say, "Cool." So, we just said free

21-day transformation. When they come

in, we'd say, "Cool. The free version of

this is you get one workout per week and

you get at home nutrition course. So

we'll give you this course, you can take

it at home and you work out once a week

for the next 21 days, which three

workouts, okay? Or

we'll give you the unlimited version. So

you work out as many times as you want

over the next 21 days. We'll personalize

your nutrition. We'll give you uh you

know grocery store instructions exactly

what you need to buy. We'll guarantee

that you'll lose at least 10 pounds or

15 pounds in the next 21 days or we'll

give you another 21 days free on the

back. And when presented those two

offers, they came in for the free 21-day

transformation, but when they were

presented the premium version, they

said, "You know what? I'd rather do

that." Upselling is as American as apple

pie. There is nothing wrong with having

an upsell as long as you still offer

something that is free that complies

with what your original promise was in

the advertisement. So, if someone comes

in, and the key point of making this

work is that you can advertise the free

21-day transformation, not also you get

all this stuff. If you say you get this

other stuff too, then you have to

deliver on it. And so the key is and

this is one of the benefits of

advertising results rather than the the

vehicle because then you can choose the

vehicle and associate price however you

want in the sales presentation. All

right? And so this offer structure,

right, this money model is 100% based on

the upsell. This is how all of the money

of this works. And the key if you have

this structure properly is 70 to 80% of

people should take the premium version.

So description. So decoy offers

advertise something free or discounted.

So I could just as easily say $19 or $21

21day transformation. They come in and

they say, "Cool, you can do the $21 one.

You already paid for it." Or I'll credit

your $21 towards a $421

thing which we'll roll it towards and

now you can pay an extra 400 bucks today

and you're in. Right? So then when leads

ask to learn more, you also present the

more valuable premium offer. And the

premium offer provides more features,

benefits, a bonus, guarantees, and so

on. So, by putting your decoy offer and

premium offers next to each other, they

can see how much more valuable your

premium offer is. And so, I like decoy

offers so much because they get more

customers overall. And so, they either

take the decoy version or they get the

premium version. This is an assumed

close. That means everybody buys. I like

that. Now, if they take the premium

version, great. If they take the decoy

offer, also great. And guess what? You

can also grab a couple of the bonuses

from the premium and toss them in

because you're like, "Hey, I know you're

only taking the the one workout a week

thing, but let me do some personal

nutrition for you. Come back in a week

or come back in two days." And guess

what we do at the personal nutrition

consult? Sell $300 of supplements. And

so it's it's all good. All right, but

either way, here's the thing is you

close everyone. And this makes it cheap

and profitable, get new customers, and

any business can do this. You literally

just take what you have. Well, I'll get

into what it is. Okay, so here are the

steps to make a decoy offer. One,

advertise a lesser or smaller or simpler

version of your premium offer as the

decoy offer. Then when leads engage,

offer both options, but emphasize the

premium one, and you use the bonuses,

the premium value, and the guarantees to

close the additional people. All right,

now let's do some examples. So let's say

I have a lemonade stand. This is to

prove the point that it works with

literally any business. All right, so

you the attraction offer is uh this is

like what the headline of the ad might

be. So you'd say, "Hey, free week of

lemonade for all first-time customers."

Okay, now I'm not giving any features. I

just said free week of lemonade. Now,

option A, this is the free week, is that

you can have this free plus water and

powder, uh, this warm water, right, and

artificially sweetened, and it may give

you digestive issues. Uh, but you can

absolutely have this free lemonade or

you could have the organic, allnatural,

vegan, gluten-free, imported Italian

lemons, which are cold, distilled, and

shipped straight to your door. So, you

never waste time coming into the store.

And so, it's like, which one do you

want, right? Of course you want this

one. You want the premium one. And so,

that's what people take. So, let's say

you've got um this is actually a flow

tank center. I had an agency that did

flow tank stuff for a minute uh in

Allen. So, they use a free six week

stress release challenge. Okay, so the

attraction offer was a free six week

stress release. Uh or um you could say a

$6e stress release. Either way, that's

free or discount. Decoy option, you get

one float per month with at home do it

yourself stress release exercises. or

premium option is two a week, floats for

six weeks, one-on-one consulting,

journal, sleep routine, and a

satisfaction guarantee. Guess what?

Everyone took this one. All right. Now,

the gym offer. This is the local one.

So, this this is basically the breakdown

of what we did. So, free 21day

transformation or $21 transformation. Uh

workouts done in a school.com group once

a day and a general nutrition plan. So,

it's like we're a local business. You

can get one workout here. The rest of

the workouts you can just do online,

right? You can watch the recordings. You

get no support. You get no guarantee or

you get unlimited workouts, a

personalized nutrition plan,

accountability, results guarantee or you

can free. So now important points. All

right. So how to make your decoy offer

offer fewer components, older models or

less personalized versions of your

premium offer. Some of you guys are

like, I don't know. I can think make my

my decoy offer. Think about what you

have. Make it less personal. Make have

an older version of what you did. Give

them that. Like these are you just peel

off features that cost you the most

money. All right. And then the thing is

is your attraction offer only has to get

people to engage, nothing more. You just

need people to get opt-ins for it, which

is why you want to talk more about the

outcome and less about the vehicle.

Now, yeah, advertise the benefits, not

the features. I already covered that.

All right. So, now you can advertise

discounts in four ways. We already

covered that one earlier, but as a

reminder, uh if you have your lawn thing

and you give and it's 100 bucks a month

and you wanted them to pay $900 for the

year, you could say 25% off. You could

say $300 off. You could say three months

free or you could say one year for $900,

1,200 bucks. All different ways of

saying the same thing. So these are all

useful especially with decoy offers

because oftentimes they are discounts.

All right, so the key to making this

work is that the contrast has to be

huge. All right, the bigger the

contrast, the better the deal, the more

customers will take it. If people keep

taking your free offer, your free offer

is too good and your paid offer is not

good enough. So you want to keep doing

this until the obvious offer is to take

the premium offer. All right, discount

offers have high show rates than free

offers. Just as a pro tip, if you do

have these issues, you can do the $21

thing if you have show rate issues in

your market. If possible, present the

premium offer first. Now, if they ask

for the decoy offer, most people don't.

You then present it. But I'll show you

how to do this. Okay? So, what you want

to do is get them to give you permission

to sell them. So, if they ask Peter

about the decoy, then you're legally

obligated to present it. On the other

hand, some of you guys might be a little

bit weak in the stomach about just

offering something straight for the the

high value thing. But here's let me just

share a little bit of like advertising

scars and like years of doing this.

Almost no one remembers what they opted

in for. They barely remember the ad. And

so they just they will remember that

this thing solved a problem that they

have. And then when you they come in,

you can just make the offer that you

want to make them. Now, if they do

remember that thing, then by all means,

tell them about it. But if you are

somebody who's like, I want to always

offer the really cheap thing first,

fine. This works in the opposite way of

price anchoring, but fine. Have it your

way. So, if you're going to do it that

way, here's how you do it. So, you ask

them a sorting question first. You say,

"Are you here for free stuff or lasting

results?"

Everybody's going to say lasting

results. Some people will say free

stuff, and those people suck, and you

can just kick them out, basically. Um,

but as soon as they say results, which

most people do, you skip straight to

premium. So this way you've got

permission to then sell them the premium

offer. Now, if they say free, then you

say the free thing and then you present

the premium. So this way you can still

have them ethically select to get the

premium offer first by asking the

question because you asked them before

you made the offer. Now, if they then at

the end of the premium offer say, "Yes,

I want to buy it." Shut up and close the

sale. That's it. You don't need to offer

anything else. If they say free stuff,

you present the decoy offer and then

immediately contrast like you don't even

give them the opportunity to say yes to

it. You say and and then you go right

into the next thing. All right? And so

then only after presenting both offers,

you then say, this is key. Which do you

think will get you to your goal faster?

Or which one would you prefer to have?

And the thing is is that everyone will

prefer the better one and everyone will

think the other one will get them to the

goal faster. Or you can also ask which

one do you think is more likely to help

you get your goal. All three of those

questions are fine. They obviously force

the selection of this one. And they say

great and then you close the sale. All

right? And so you say uh so which one do

you prefer? And then they say great.

They'll have the premium offer and then

you can move forward in the sale

mutually agreeing that it's the best

thing for them. So when making your

premium offer, get excited about it. So

present it as a superior offer to the

decoy offer because it is and assuming

that it is how it is in the customer's

best interest. So your excitement about

this thing will motivate other people to

take action according to your

preferences. So from a selling

perspective, you want to talk to the

lead as though you already know they're

going to make this offer. Like they're

going to take the premium offer. You be

like it's almost in a like this is such

a no-brainer. anybody who doesn't take

this offer like I don't even understand

that people like almost and this is

where like if you're a salesman

especially if you work for a business

you want to be like I don't even know

why we offer this other thing like you

can do it if you want but like this is

where everyone gets all the great

results and even how I'm saying this is

very matterof fact very like like I it

it makes no sense to me why someone

would select that and people will take

all the subconscious cues in your body

language and your tone of which thing

they should pick so for example if I

said you don't want this do you there

that's a guaranteed no. I'm I'm asking

them to say no to something. That's what

I'm saying. And so how you present the

offerers is obviously based on your

ability to sell, but I'm trying to give

you stack the deck in your favor to make

this easy for you. So you will operate

from the position of this is what

everyone does. This is just a formality.

Let me get your ID and credit card so

you can get your value. No hype, just

friendly disposition. Almost bored about

how regularly you have to do this. It's

like, yep, so we've got this thing. Not

really sure why people do that, but this

is the main thing. Great. Great. You

have your card on you, you have your ID

on you, and then you just move right to

it. Surprise benefit. That's optional.

To take this a step further, if someone

takes the decoy option, you can choose

to surprise them with a few zero or lowc

cost features from the premium offer.

Just say, "Hey, I'm going to throw this

in even though it's part of our premium

offer just because I want you to get

great results." This also builds

goodwill. It also reinforces that you

were being truthful about saying, "I

really do think this other thing is

better for you and that you do want to

actually help them." So, it's aligned

with the scripting in the sale, right?

So, this builds goodwill. it

overdelivers and it increases the chance

that they take your upsell offer later.

Remember, they're still a lead. And if

they bought the decoy, if it's a free

thing that they haven't bought yet, if

it's not a free thing, they paid,

they're still a customer. And if you've

followed any of my stuff, you absolutely

should still upsell them halfway through

whatever this thing is. And if you give

them some stuff now, that's good. They

will probably increase the likelihood

that they will take more of your stuff.

That's good later. So, in summary, decoy

offers advertise something for free or

discounted. Then when the leads ask to

learn more, you also present a more

valuable premium offer. Make the premium

offer far more valuable than the decoy

option by adding more features,

benefits, benefits, and guarantees.

Strip down your decoy, your main offer

to your decoy offer as much as is

reasonable. When leads ask about the

decoy offer, present your premium offer

right next to it. All right. Ask if

they're here for free stuff or latching

results to get permission to put the

premium offer first. If you still don't

want that, then you put the decoy offer

and then kind of like like I mean you

can do that, but this is what people get

the best results on and you can still

make money from the leads who pick the

decoy option. You'll just learn the best

way to deliver your decoy product and

maximize upselles from it. Expect to

make money fast. If you're not, then

make the contrast between the offers

bigger.

By the way, if you're a company doing

over a million dollars or more in profit

and want us to invest as a partner to

help you scale, you can go to

acquisition.com

and hit the sell button. If you just

want help scaling, you can hit the scale

button. If you don't have a business,

hit the start a business one, which I'll

just tell you will route you to

school.com. So, that concludes the decoy

offers. Let's get to buy X get Y free.

So, we just covered win your money back,

free giveaways, and now decoy offers.

And one thing that I will highlight

before we get into buy XKY free is that

an ethical salesman makes

recommendations that he believes will

help the customer and help the business.

An unethical salesman makes

recommendations to customers that will

not help the customer and only helps the

business. And so you making more offers

to a customer is in no way unethical. It

is unethical basically if you lie. And

so you're either lying to them about

them being qualified for something or

you're lying to them about the quality

of the thing that it will get delivered

to them. Either way, fundamentally, bad

salesmanship is rooted in deception.

Good salesmanship is rooted in education

and if the education is true, which it

should be, then the customer should just

find out as much about what they need to

do to make a decision as you know. And

so, fundamentally, if you were a

customer and you were selling your

mother and she had as much information

as you, then she should buy the same

things you would recommend to her. With

that being said, buy X get Y free. Let's

rock and roll. So, buy X, get Y free.

super super common offer. There's a lot

of different ways to do it and there's

like very advanced tactics which is why

I love this offer so much. Like this

thing, it's funny because I like the

first three and I also love this offer,

too. Like it's a banger. So, we'll cover

the main five. Here's how I learned it.

So, I was in downtown Nashville. I went

to school in Nashville, college called

Vanderbilt. And I remember when I when I

got to Vanderbilt for the first time, um

I remember going downtown and there was

this uh thing called Boot Factory. and

Boot Factory had this massive boot that

was bigger than a car, big flashing like

almost like Vegas lights. And uh on all

the windows it said, "Buy one pair, get

two free." And I was like, "This

business, these guys are idiots. Like,

they're just giving away their boots."

And I being, you know, like of course

fresh to college out of high school

knowing literally nothing about

anything. I assumed that I was more

intelligent than the store owner who

obviously was doing very well. And so,

uh, I came back 10 years later and they

had expanded. And so I was like, "Huh,

that's interesting. Now 10 years later,

I had a lot more business acumen." And

so I went in and I like looked around,

poked around, and I saw that the pairs

of boots had each of them had multiple

markdowns on the price down to $600 for

one pair. At least the ones that I

looked at. And so it was instead of

saying buy one fairly priced boots or

buy 20% off, they had buy one get two

free. But if you bought three pairs of

boots for $200 each, that's still like a

pretty normal price for leather boots.

And so the ones that I like the ones I

was looking at were not like Stingray

or, you know, Hippopotamus or something

like they were they were normal leather.

And so I realized that they had just

fully baked the cost of three into one

pair and then said, "Buy one, get two

free." And the thing is is that because

of that, all the bachelorette parties

would pile in because the bride would

get one and then the other two friends

would get them for free or one of the

friends would buy a pair and give one to

the bride and one to her maid of honor

or whatever and they just milked it. And

so that is how I learned this more

valuable way of doing buy free. So let's

get into it. So in buy get free offers,

customers buy something, they get other

stuff free. Cool. Makes sense. the more

free stuff they get and the higher its

value, the better it works. Buy one, get

two free works better than buy two, get

one free. Free offers get way more

attention than discount offers. But if

you only have one thing to sell and give

it away, then obviously you go hungry.

If you just say like buy here's free

boots, that's not going to work, right?

So in situations like this, they tend to

lean on discounts. All right, most

businesses do. So they run sales relying

on holiday seasonal changes or whatever

as, you know, reasons to temporarily

lower the price for whatever the thing

is to get more customers. But by selling

more than one thing at once, you can

turn discount offers into even stronger

free offers. This is the magic of buy

XKY free. It will take a 33% discount

and it can make it into buy 2 get one

free, which is far more compelling. And

rather than getting 2/3 of one ticket,

you still get someone to buy two

fullriced items, but you still

effectively gave them a one-/ird

discount, which you would never

advertise because why would you

advertise that when you could buy two

and get one free? That's more strong.

All right. So, I'm going to give you a

lot of different ways to slice this

because this is what I want to help you

match this to your business. So, when

you have more than one item, you can

make the discount value large enough

that it covers the price of more stuff.

For example, I could sell three t-shirts

for $30, right? So, $10 each or I could

sell one t-shirt for 30 and get two

free. In both situations, I give away

three shirts and get $30. But the

perception, think about the difference

here. If I said, "Hey, buy three shirts

for $10 each." How compelling is that?

Not that compelling. If I said, "Buy one

shirt, get two free," I'm gonna for sure

get way more attention, but the

economics are the same. Powerful. Now,

I'm going to give you another example.

Now, if I wanted to offer a discount

rather than only reframe the price, so

the example here, I just reframe the

price. I'm still getting the same $10

per shirt. Zero discount here. I just re

reframed how I'm how I'm pricing my

offer.

If I wanted to also use this plus a

discount, I could sell three shirts for

$6.67. So, it's like buy three shirts

for $20. That would be the discount

version. Or I could now say buy one

shirt for 20 and get two free. Same

thing. It's still effectively a uh uh a

one-/ird discount, but it accomplish the

same objective. Okay. So, those are two

examples or sorry, those that's the

description. Now, I have more examples

for you. All right. So, buy one, get two

physical products offers. This is the

boot factory offer. One pair is $200.

Buy XY free. Buy one pair for $600, get

two pairs free. So, the end result is to

still buy three pairs of $200 boots. All

right. Now, here's three versions of

this that I want to break down for you

to show you the power of this. So, if

you said, "Buy 12 months, get six months

free for $8,800."

Okay, that's an offer. And a lot of

people might take that. Like, that's a

that's a that's a good offer. A better

offer would be buy nine months, get nine

months free.

still $1,800. A crazy offer would be buy

six months, get 12 months free for

$1,800. In all three situations, they

get 18 18 months for $1,800. That's what

it works. Everyone pays the same price

for the same amount of service, but the

third option will be the most compelling

because it has the most free stuff. So,

important points. Buy X get Y free gets

people to buy more stuff and provides

more value. So, it used to take a whole

year for some of my service businesses

to make the money to cash flow the

acquisition. But if you do buy six, get

six, for example, on the front end to

attract customers or as a hey, it's our

grand opening, buy six months, get six

months, you can attract a boatload of

customers and get six months prepayments

from all of them at full price. Now,

guess what happens if I have a full

price or even a higher than full price

thing that I add some little tiny

differentiator during my grand opening

special, which allows me to say that

this service was higher than what I

would then normally offer later, then it

justifies me having an even higher

price. So, when I say buy six, get six,

I might just get prepayments at

basically the full price for the year

because I added this extra wrinkle in

that's very high margin for me. So, for

a gym, I might say, "You get text access

to me." Which, by the way, I probably

would give all my first customers

anyways. I just wouldn't promise that in

the sale. I might for a grand opening.

So, raise prices before we're giving

stuff away to preserve profits.

Obviously, if you can only afford a

certain amount of margin, then don't

give away your margin. That's just like

my big obvious disclaimer. Now, buy XKY

free works better if you have more free

stuff than paid stuff. All right? So,

give away give more free than you ask

people to buy. Just play with the

pricing until it makes sense for you.

So, buy one get two instead of buy two

to get one. So, these are the same

economics,

but this one's stronger.

That's how it works. Okay. Now, the free

things can be different from the paid

things. So, this is key. So, you just

want to make sure that the free stuff

still makes the offer compelling. Let's

say that uh socks have a $10 value. If

they buy one shirt for 10 bucks, but get

$20 of free socks, it may seem like a

better deal. Now, alternatively here, if

we're looking at like buy one, let's say

shirts are 20 bucks. If I say buy one

shirt for 20 and get another shirt free,

that may seem like less valuable than

buy one shirt, get two pairs of socks

free. Because what someone's going to

translate it into is buy one thing, get

two things free versus buy one thing,

get one thing free. Now, this is a

testable proposition. In some some

offers, two pairs of socks may convert

better than one shirt. Depending on if

the way that that buyer buys, the next

logical thing they would need would be

socks. So, more free, cheaper things can

work better than fewer free expensive

things. Okay? So, let's say I could only

afford to give one shirt away for free,

but now the same for the same cost, I

give three pairs of socks. I would

probably test buy one shirt, get one

shirt versus buy one shirt, get three

socks for free. And even though the

socks cost less than a shirt, it's still

buy 1 get three. And sometimes that

converts better. So I test this. Rather

than offer a 33% discount, try buy 1 get

two free. This here will convert more

than this. But they're still one-thirds

off. All right. So I just like to if you

are going to use a discount, this

structure still makes a discount even

more compelling. Do not make offers like

this if you cannot manage money,

especially with service businesses. So

if you say buy six months of service,

get six months free. If you don't know

how to manage money and you immediately

blow the money that they prepaid, you're

a bad business owner. So you need to be

able to consistently like if you have to

have an accountant, you know, do this

for you, put all the cash into one bank

account and you can pay yourself out of

that bank account every month as you

deliver services. But the worst thing

you can possibly do for your reputation

is like pre-sell a year of service and

then you know like do not do this play

if you are trying to keep your business

alive. If you need this cash in order to

keep the business alive, I think you

risk your reputation by doing it. I also

cap this at 10% of a recurring customer

base for those who have recurring

revenue businesses. So, if you want to

do a banger buy X, get Y free, which is

a really great cash play. Let's say you

have 100 recurring customers, cap it at

10. Don't let more than 10 of your

recurring customers prepay for the year

because you still like I this is a not a

math solution. This is a psychological

solution. I've just seen way more

businesses succeed by keeping their

recurring cash flow because most

business owners honestly can't manage

it. Now, mathematically, it makes sense

to get everybody on annual, but a lot of

people can't handle that responsibility.

I'm just be really honest with you.

Okay, so this is a great grand opening

strategy. Uh, as I referenced earlier,

um, this is also a great offer to give

for fast cash. Now, if your business is

healthy, but you're like, you know what,

I want to buy a bunch of equipment.

Great. prepay 10 people, go buy your

equipment, or you need to go buy another

big oven, industrial oven for your

baking business. Like, totally makes

sense for you to do prepayments and

things like that to cash or fund rather

than take on credit lines. Super smart.

Um, so even if customers prepay, you can

still upsell them different stuff now.

So, this is really important. So, I made

this mistake, which is why I share it

with you. The people who prepay,

especially for services for durations of

time, business owners have this fear of

selling them or making offers for other

stuff. But here's the craziest thing

that we saw is that the people who

prepay for the year are the most likely

people to buy more stuff afterwards. And

so these are basically a way of

identifying your hyper buyers. And so

they self- select. They prepay for a

year. And guess what happens after that?

When I would have big booty boot camp

and a deadlift seminar or, you know, uh,

make your sexy back or I would do buns

and guns or whatever else I would do

lean by Halloween. They were the most

likely people to pay because guess what?

They weren't paying anything for being

there. as far as they felt they they had

paid so long ago they forgot that they

paid. So it felt like I was just a free

gym. And you know what the cool thing

about wallets with people who make

money? They replenish and then you can

ask again. So if customers only buy

once, this is just a disclaimer for the

um for the boot business. The reason

they structured their deal that way was

to maximize the transaction. So if

you're in a business where people only

buy once, then it makes sense to

structure as much into that first sale

as you can because you're only going to

get one shot. the bachelor parties are

probably not coming back to Nashville.

Now, maybe they will, but for the most

part, that's this you want to make the

big the ask as big as you can if you're

only going to get one shot. Summarizing

buy free in by XQY free customers buy

something, they get other stuff for

free. Buy X get free works uh for stuff

that makes sense to buy more of or get

longer access to. Basic XKY free offers

reframe pricing. Buy one, get two free,

cost the same as buying three except

customers see the free offer as more

valuable. Remember the 18month service

example I gave. So always try to give

more free things than paid things. And

you can pair different free things with

paid things as well, which you can just

test. All right? So buy X go free can

lengthen the amount of time customers

stay. If normal customers stay for three

months, then buy to get to customers

will keep them for four months. So

whatever you sell, try and extend

whatever the normal customer duration is

by saying saying like if I know

customers stay for three, I do buy two

get to and I price it so that it's still

four. I make more money. I make 33% more

money. It's a great deal. Uh if you use

Bux gety to generate a lot of cash fast,

make sure you manage it and you can

deliver on your promises. If you need

fast cash and your business is healthy,

make sure make this offer to existing

customers uh and just cap how many you

sell to. If you have recurring, I

recommend 10% as the cap. Um keep on

customers who prepay for long durations

because they are the most likely people

to buy again. With that being said, that

is buy XKY free.

All right, so we covered the first four

offer. Win your money back, free

giveaways, decoy offer, buy XY free.

They just keep getting better. Um, and

right now you're pro your mind's

probably moving like shoot I could use

all of these. Yes. Yes, you could.

That's the point. That's why these

things are so valuable. So now we move

on to pay less now or pay more later.

Also super sexy. So let's dive in. Same

big five. How I learned it. Description

examples important points. This is my

big fancy uh drawing. Big and fancy.

Enjoy. All right. So how I learned it.

So, I went I got this email for double

your reading speed in three hours or

it's free by the world's fastest reader.

And so, I was like, "Sure, okay." So, I

clicked to register and so they said,

"Uh, put your credit card down for $0

and get build 300 bucks after the

training ends and if your reading speed

doesn't double, email us and we won't

bill you. You have to attend to be

eligible." I was like, "That's pretty

fair." Like, I mean, if I could double

my reading, I would pay $300 for that.

And I get to decide if I doubled my

reading after I I decide to pay after

I've doubled it already. I was like,

"That's kind of cool." So, I said, I

clicked, "Okay." And then the next page

said, "Or pay $97 right now and get the

recordings from it for free." And I was

like, "Ooh,

I kind of want the recordings,

but I will say I was younger and I was

broker and I was like, I want to make

sure it works." And so, I decided to not

take this offer. Now, on the 3-hour

training or whatever, the first hour and

a half or two hours, he had an objective

point in the middle where he was like,

"Okay, now I want he tested us in the

very beginning and then at the halfway

point, he tested us again." You know,

everybody who raised their hand said,

"Yep, my you know, reading speed bubbles

were like, oh, I tripled, quadrupled,

whatever it was." Um, some people didn't

and then he like called the people out,

tried to help them like live, whatever.

And then after that, just at the very

end, he was like, "By the way, if you

thought this was good, this is what the

progress we made in, you know, 2 hours.

If you want, I have an eightweek

intensive on the back end that will even

further increase your reading speed and

your comprehension. And so you can read

at a faster rate and contain more and

ultimately like learning is the meta

skill of everything. Like if you learn

this one skill, blah blah blah blah,

right? And so I ended up not doing that.

But I was like, "Wow, this is really

interesting." He gets all these people

on, he makes money from the 97s, he

makes money from the 397s, and he then

pitches people another thing. I was

like, "This is pretty cool." So that's

how I learned it. And I was like, I

wonder if I could do something like this

for my business. And you can, too. So,

let's dive in. So, in pay less now or

pay more later, you give people a choice

to pay full price later with an implied

guarantee of satisfaction or pay a

discounted price now. This play removes

all risk from the customer, which is why

it's so compelling. The other amazing

thing is that you can advertise that

it's free because they put $0 down and

they only pay after they get it if they

want. So, they pay later and only if

they like it. And it combines the

benefits of a delayed payment and a

satisfaction guarantee. So it does both.

It's like it's a delay and satisfaction.

That's why it makes it so compelling for

people. And anyone can sell this. Almost

anyone agree to pay later if they're

satisfied. So from a salesmanship

perspective for your business if you're

like not that good at sales, this offer

primo. But once they agree to pay later,

you can then get them to pay now with

hefty discounts and valuable bonuses.

Like in this example, the recordings was

a very valuable bonus. You can also

stack other bonuses as well as

discounts. So, it's like, oh my god.

Which also, by the way, shows you the

value of delayed payment and guarantees.

How much you have to discount and how

many bonuses you have to stack shows you

the relative value of a guarantee and a

delayed payment. So, the pay later

option allows you to advertise free

since you can choose to pay or not. And

this gets lots of leads to engage. But

this free offer has an added benefit,

which is we get their card on file. So,

this works just as much online as it

does in person. So whether you have

either type of business, it works the

same way because if they choose this

option and they hate the product, then

they can cancel at any time before the

charge goes through. But if they accept

the pay later option, then we can make

follow-up offer to pay now. And the

option can provide the whatever 20 50%

discount, sometimes two-thirds discount

like the 97 example I gave and greater

bonuses. And since we already have their

card on file, we make it easy for them

to pay because now we already have it,

right? And so whether they choose to pay

now or pay later, you've got customers

and likely some profit. But to take full

advantage of this offer, you want

something else to sell. So have

something more better or newer to offer

them when the time is right. All right.

You want to market the core value as

free. Double your reading speed. The

prospect puts the car down for the to

consume the service or value. At the

end, they're build for the service at

full price. Now again, if you offset

your cost to acquire the customers with

the $97, whatever the immediate thing

is, then you want as many people to pay

the three times as expensive thing. So,

it's not that you want to force everyone

to do that, and I'll talk about the

balance between the price points later,

but the objective is not to get everyone

to pay now or everyone to pay later.

It's to balance it just enough to offset

your cost to acquire customers and then

get as many people to then uh basically

delay payment so you can make three

times the amount. All right? And so, you

can charge more for the thing since it

delayed purchase to the same degree.

People will agree to pay more later than

they will now. And so you can also boost

the price because also if so you if

someone it basically means what's the

price of the guaranteed delivery. So

when you have someone pay today there's

a a risk metric that they apply to the

purchase on the risk that they don't get

what they think they're going to get. If

I said hey you only pay me after you get

a six-pack. Then people are like oh then

the value of a six-pack is directly

related to the price that they pay.

which means I could charge way more for

that thing because it's at a delay. And

so we want to give the one-time offer uh

of the same thing for one third to one

half the price plus bonuses and

guarantee to get more people to buy now.

Great. All right. So let's do some

examples because some people are like,

"Okay, I get how it works for the

reading tutorial, but how does it work

for other businesses?" So pay later zero

plus 299 after three-hour training and

pay now 149.97 doesn't matter. Recording

plus notes. Okay. Now if some of you are

like wait I thought I said 20 to 50. I

thought I said 67. Doesn't really

matter. You just pick the discount

amount that accomplishes your objective

for offsetting as much cash as you need

to break even on the acquisition. Now

upsell and also to be clear if you are

doing this this thing is happening all

within 30 days. I also include the cash

I get from the pay later option because

they're still paying in that 30-day

window. So if I get some today and then

some in two weeks or some in three weeks

or some in four weeks, I still get it

before I pay my card back. Whatever

doesn't matter to me. Now, upsell. The

upsell here is the 8week W reading speed

thing. Cool. So, we have three offers.

Pay later, pay now, upsell. That's how

this works. Now, let's say I'm in the,

you know, find your first real estate

deal. Okay, fine. I do a three-day

workshop. Pay later for $0 for a

three-day workshop. They get build $500

at the end, unless they cancel. Pay now

is $2.99 for the three-day workshop,

plus the recordings, plus a one-on-one

call with a distressed property expert,

plus printed materials that they can use

at the workshop. Kind of compelling.

Now, the upsell is that when they go to

the 3-day workshop, guess what you do?

You sell $30,000 to take them through

every other step of closing their first

deal within six months, plus legal

templates, uh, an adviser to vet the

investment, inspection checklist,

whatever. I don't think I mentioned this

yet, but one of the really sexy parts

about this is that because every single

person who registers puts his card down,

the show rates are astonishing. They're

very, very good because every single

like you think about like, oh, this how

do I make sure people come to the

workshop? It's like, dude, everybody put

a card down. Physical products do this,

right? 14-day clothing trial. So, they

have a pay later option. $0 now get it

then get build $149 to148. Amazon

started doing this. It's try before you

buy like like this works in any

business. All right. So the pay now

option is you pay $97 for the closing

plus you get an accessory to go with it

but you could have this offer because

then you could advertise that people

would try for free but you'd still want

to monetize it sooner. The upsell could

be that the dress comes with an offer

for monthly subscription to more dresses

or more clothes or clothes in this style

and the customers have to return the

product in like new condition before

billing to qualify for the guarantee.

Now, let's do a local business. I'm

giving more examples because people tend

to be less creative. All right? So,

let's say you've got trim your hedges.

All right? Like very normal, you know,

local business. So, the pay later option

would be $0 lawn cut plus hedges and

then after we do it and it's to your

liking, it's 600 bucks or $3.69 now lawn

cut hedges and lawn treatment. Now, some

people are like, "Why is that so

expensive?" I have big houses. Whatever.

Fight me. I'm kidding. You can change

the prices to whatever you want. It

doesn't really matter. All right. You

can make this $59. This 30 $36. It's

fine. All right. Relax. Relax. You're

going to be okay. All right. Now,

upsell. So the upsell from there is the

$1.99 a month uh for lawn care services.

And so then the rep comes to the house,

makes the estimate and then offers both

options then upsells once the work is

done. And so when they go there to say,

"Hey, we can trim the edges and you can

pay me right now or you can pay me after

the thing's done. You can pay more,

right? And then as soon as we get the

card, then you can be the upsells."

Boom. Important points. Okay. So here's

the key part. Promise a clear yes no

result. So, first you make a promise,

yes, no. Second, make sure you can

deliver on it within your time frame. If

you don't, they will ask to not be

built. And so, you want to make this as

objective as possible for people so they

can say, yes, I found my first deal.

Yes, I got my first reply from an email.

Yes, my reading speed doubled because I

got to hear like, and you want to have

some sort of measurement before and some

sort of measurement during so you can

see the progress. So, for example, if

you promised a decrease in so shoulder

pain, have them rate their pain before

you do your magic trick and then ask

them to rate it after. If it went down,

you succeeded and you can sell them

something else. Keep the promise simple,

clear, and measurable. This avoids

unnecessary cancellations. Now, make a

conditional satisfaction guarantee. So,

people can only cancel the billing if

they qualify. For example, they had to

show up to the reading training to

qualify. All right, it's a key point.

And so, if you don't show up to the

workshop, then you can't ask for the

refund. So think attendance, showing up

for an appointment, turning in data.

Make the criteria what people do to get

the value out of the product. All right?

Which should make you feel good too

because then you could explain it. It's

like listen, I have this as the criteria

because you said you want a double

reading me. You're not going to double

read me if you unless you show up.

You're not going to find your distressed

op property unless you come to the

workshop. Have bonuses for your uh pay

now offers to get even more buyers. All

right? So if you want more people to

take that pay now option, just stack the

bonuses, decrease the price. um

optimizing your pay now and pay later

offers. If too many people take your pay

later option, discount the pay now

option more, add better bonuses or both.

And if too many people take your pay now

option, go the other direction. If more

than 10% of pay later people cancel

their payment, you promise too much. Uh

the guaranteed conditions are too low or

the price is too high. And so the last

one's the one that can be kind of tricky

is if you have a massive discrepancy

between pay now and pay later, then

sometimes people will get the value and

just be cheap skates. That's why having

the objective measure of whether they

got the thing is so important for this.

Now again, I would explain that 10% is

what you should target or what you

should expect. So 10% of people who have

pay later are going to just say don't

build me. So just factor it into the

cost of doing business. So if you have

100 people that do you pay later, expect

10 to say that. Now if like 20 say that

more than it's like okay we need to

change one of these other things. I

would say the fourth thing is that

you're selling people who can't afford

it.

Note no matter how well you deliver some

people will cancel the payment and

that's okay just cost of doing business.

Now uh this works for recurring revenue

businesses too because you're like how

does this work for those businesses? Let

me explain. So, you just give them the

option to pay a higher ongoing rate 30

days later or they pay less today and

they keep the better rate for good. All

right, really sexy. So, plus you can add

in some bonuses. So, I'll I'll I'm going

to give you one line now and we'll talk

more about it in the onetime bonuses

chapter uh with continuity, but it works

like this. someone does a free trial of

whatever your subscription is into $400

a month and then on the thank you page

you say or you can pay $300 today skip

your trial and you get to lock in at

$300 a month for life. Pretty sexy.

That's but now in order to do that you

would add bonuses and that also gives

you a lifetime discount. There's two but

there's two benefits from that which is

why it makes such a compelling offer but

you can advertise the thing as a free

trial but then you can liquidate the

acquisition because you have the

immediate thank you page offer. So if

you run events, workshops,

presentations, hint at your next offer

early. So if the reading guru had said,

"Everyone wants to know when my next

reading intensive starts because they

sell out so fast." I'll get to it at the

end, but please pay attention. I want to

deliver on the promise I made to you

guys to double your reading speed first

by hinting about his new offer, he would

have sold more of it. And he didn't. But

if he had, I might have had a higher

likely to buy. And so I used to do a lot

of nutrition consultations, and this is

what I learned myself doing this is I

would start my consultation by being

like, listen, everybody wants to know

what supplements to buy. We're going to

get to what supplements to buy, but

right now we got to get your weigh-ins.

We got to get you to understand food.

That's the most important part.

everything I just said was true. But by

saying everyone wants to buy, everyone

wants to know what to buy. I I I seed

the idea that they're all going to buy

something, but I seed it in a way that's

not it's me talking about everybody

else, not the people in the room. And so

I would say, "Hey, people are going to

interrupt me all, you know, to ask about

supplements." And it annoyed me. And I

did it one time by accident. And then of

course it worked really well. And then I

started doing it every other time on

purpose. All right? And so by accident I

implied that people who uh that

everybody bought supplements without

actually offering them. And all the head

headnods actually showed that they

actually did want more products. And so

all these factors got more people to buy

when I finally asked them to. So it was

a happy mistake that I was sure to

repeat. Now if you're selling over the

phone, get the card first, then ask, "Oh

yeah, I forgot to ask you. Do you want

to save 200 bucks on that price?" So I'm

giving you different selling

environments. So if you're selling in

person, uh I explained that the the lawn

care thing. If you sell uh digitally,

it's a thank you page thing. If you're

selling over the phone, you get the card

first for the trial. You get the card

first for the pay later option. Then you

ask like the thank you pages once

they've agreed to that purchase, then

you say, "By the way, I forgot to

mention, do you want to save a little

bit of money or say whatever the price

is and get these extra things?" A lot of

people say yes. And then you should

explain, "Yep." So, for people who

decide to just sign up without uh

waiting to experience it first. So, if

you want to skip the trial, you get VIP

seating and recordings from the event

and you get it for $200 less than if you

wait and you won't be able to get those

two other bonuses at any time. You want

to go ahead and do that. And so, the

more compelling those bonuses are, the

more people will say yes. Great. Now,

let's summarize this B. All right. So,

pay less now or pay more later offers

people to uh a choice to pay full price

or pay a discounted price with

additional bonuses if they pay now. The

pay later option has a delayed payment

with a conditional guarantee. Have a

clear criteria to qualify for the

guarantee and easy ways to measure it.

If you can align the criteria with what

gets people the most value from the

product. The pay now option offers a 20

to 50% sometimes two/3 discount and

bonuses if they pay now. Depends how

desperate you are to get people to pay.

Offer customers the pay now option after

they already accept the pay later terms.

All right? So if they choose to pay now

then they get the discount and bonuses

instead of the guarantee instead of in

lie of. All right. Now, you make your

promise easy to track and difficult to

refute. So, not only is it easy to

track, but they can't say they didn't

have it. The easier it is to track and

the harder it is to refute, the better

it is for this type of offer. So, you

want it to be as clear as a yes no. And

if you have more than 10% cancelling,

the pay later option, you promise too

much, the guarantee conditions are too

low, or the price uh is too high andor

the people you're selling to are not the

right people. All right? So, also give

extra attention to the customers who

claim they haven't gotten value. If you

remember during the thing, if people

didn't say they they raised their hand

and they didn't double the reading

speed, he attended to them so he could

check off the can. He basically

purposely brought down the cancellations

that he was going to get later. And so

there it's really easy to tip people

over the edge. It probably takes if

especially if you're an inerson thing,

you can just easily check those boxes

off and it'll save you a ton of money uh

in cancellations. And that is the pay

list now or pay more later.

So, we covered win your money back, free

giveaways, decoy offers, buy SKY free,

pay less now or pay more later. Those

are the five main attraction offers in

the book. And you, Mr. Video Training

attendee, get a bonus number six, free

with consumption. The reason that this

one I pulled out of the book is because

I think it required the most skill to

use and it was the most amorphous in

nature. So, it's the most complex. Um,

but it's it is one of the most used

things that people have in marketing. So

let's dive into it. Now this one uh same

five how I learned it. So I went to an

event for uh for my gym to learn

marketing stuff and I went to a side

stage to see one of the presenters

because they had like three stages going

at any time. So I saw this guy present

and he did an entire pitch deck but then

right where you transitioned the offer

he just didn't because no one was

allowed to pitch at this event. And so

he said hey if you want to find out more

you can just go you know over there and

whatever. And so the thing is is they

weren't allowed to sell, but at that

moment I wanted to buy. And I learned

later that that thing was called a

webinar. And I thought that was really

cool. And so that was more or less how I

found out that I could attend something

for free and then want to buy something

afterwards. So I call this free

consumption to upsell. So the reason

this is a little bit different is that

the promise of the attraction offer is

to get people and then liquidate the

acquisition because there's a delay

here. It like it was loosey goosey. Uh

not that you can't liquidate within 30

days. So you can again this is why I was

like anyways it's a bonus for you guys.

All right so let's get in the

description. So I'll show this image

real quick. So this is like a lot of

times the consumption thing is 20

minutes long to 5 days long. So it could

be one free video, it could be a PDF, it

could be an audio, it could be a live

event, it could be a workshop, anything

that someone's going to consume a ton

that then they go, "Oh, this thing's

free." They learn a bunch. They say,

"Oh, I can do this." And then they put

money down. That's how it works.

Fundamentally, you're selling or giving

away a selling tool. Now, effective

selling tools also provide value. Bad

selling tools are just pitches. Don't do

that. Let's dive in. So, you give the

free thing that teaches and provides

value. It breaks beliefs that most

people have around that particular

thing. And so the more knowledgeable you

are about your customer or your

prospects, the more you can

systematically break their beliefs

around uh the opportunity that you have

or whatever service you provide that

people get hung up on. So think about

this is like FAQs on steroids and you

want to make an offer that solves their

next concern or have embedded CTAs or

calls to action to take the next steps

in the process. By the way, if you're

watching this massive video training and

you want to scale your business, we're

pretty good at it. And so, one, if

you're a really big business, you can go

to acquisition.com and hit the sell

button and we'd love to look at your

business to invest in. If you're a

smaller business, call it less than 10

million a year. Then hit the scale

button and we'd love to help you scale

from a million a month to beyond a

million dollars a month. That's an

embedded CTA. That's how that works. All

right? And this works for books,

webinars, VSSLs, events, workshops,

video trainings like this, anything

where you get people's undivided

attention. Now, what this does is the

process reverse engineers trust. The

best way for someone to know that

they're going to get value from you when

they pay you is to give them value

before they pay you. Mindblowing, I

know. And so, I believe that education

is at the core of advertising. It's the

core of marketing is that you help

people shift their belief around

something so that they make a decision

to buy. And so the amount of time that

you need is in direct proportion to the

price of the thing you sell, how cold

the audience is, and what that price is

relative to their buying power. So for

example, if I'm selling consumers, uh,

if I have a $20 thing, I might be able

to sell that in a 7-second ad direct to

purchase. If I sell a $7,000 thing, I

might also be able to sell that off of

30 secondond ad to a $50 million a year

business owner. So it depends. It's the

price relative to their buying power.

But if you're selling a $500 thing, if

it's a physical product, maybe you can

get it off of an ad. Most likely above

that, you start having to add in phone

sales and things like that in order to

close deals. Now, to be clear, it is my

belief that every customer needs a

certain amount of information to buy.

And so Tesla, for example, sells their

cars on the internet. You can buy the

car online. And so with enough brand

goodwill and enough people making that

are aware of the products and the

reviews that you've had, the word of

mouth, you can facilitate a 30, 50,

$100,000 plus sale with zero

salespeople. But for every person that

opts in on the Tesla site, if they also

had a thousand people calling, all the

people who didn't follow through with

the purchase, they would make even more

money. And so the idea is that marketing

gets as many people over the line as you

can. And for everybody who's not over

the line, sales fills the gaps. But it's

not that sales and marketing are

different. They are the same continuum.

And so this free consumption thing is

basically just zooming more people

along. Think about it like microwaving

the prospect. So it's like in two days

you go from I don't know who this guy is

to I absolutely trust them. And so I

learned this from some interview I heard

uh from this sounds bad, but a guy who

had a Ponzi scheme uh for investments.

But I I still I love understanding what

they do for persuasion because they use

great skills for evil. We want to use

those great skills for good. And so he

found that he could get someone to

invest many many millions of dollars

with him within four hours. And I

thought that that was fascinating. Uh

just and again it depends on the

prospect who who are we talking to,

right? If you don't have a million

dollars, then you would have no idea.

But that's it really depends on who

you're talking to. All right. So I like

to use this analogy of the bigger the

plane, the longer the runway. And so if

you want to sell a really expensive

thing relative to what someone has in

terms of money, you're going to need

longer in order to earn their trust.

People don't sell time shares off of a

free ebook. They do by telling them to

fly down for a cruise for seven days and

at the end of the seven days they get

them to buy all sorts of stuff. All

right? Because after that period of

time, they trust you. So that is the

description. That is how it works.

That's why we do it. Now let me give you

some examples. So this was a really

common one that happens in the uh

chiropractor space. So they have the

diabetic dinners, neuropathy, xyz

dinners. They give these free dinners

away. So they sometimes they do steak

dinners, right? And so what they do is

they have a 90-minute presentation

during a three-hour dinner that sells a

$50 to $100 consult, which sounds like

why would you waste that time? After

they come in for the consult, they then

sell them a $5,000, $10,000 year-long

health and wellness program with

supplements and nutrition protocols to

go with it. And so the benchmarks there

are you convert 25% of the room into the

$1,500 thing and then you convert a

third of the people who show up for the

appointment into the $5 to $10,000

thing. So you do the math there. It's

basically you're converting somewhere in

the neighbor of like 10ish%

um of the people who show up for the

dinner fundamentally end up buying the

expensive thing. So if you have a 100

people show up for the dinner and you

sell 10 at 10K, you make 100 grand from

a dinner. This is super common in the

education space. So there's these three

to five day challenges, these virtual

summits, things like that. And so these

are, you know, day one you give, day

two, you give ask, day three you

repitch. That is the very standard

structure. And so in the challenges

structure, it's give, give, give, pitch,

repitch with proof. If you have a very

high ticket price, you can push people

to a phone call from the five-day thing

to get someone to finalize the

transaction, get details from a

salesperson. And so the goal of these

challenges, these events, these

multi-day things, these dinners is to

break the core beliefs of the prospect

while you deliver on the tactical

promise that you made at the beginning

andor the headline of the promotion you

had. The benchmark that I would have if

it's virtual is that you convert two to

5% of people who opt in, not who

schedule show everything down, but just

if you're saying, I got a thousand

opt-ins for my virtual thing. If I can

convert uh 2% of those people at a, you

know, expensive price, then I will

offset the cost. Now, if you're like,

wait, mine's not cheap. It depends by

market, but if you're going really mass

market, really cheap opt-ins, it's two

to five%. If you're in a super niche, it

should be way higher than that. That's

the basically that's the worst numbers

you can have. It only gets better if you

have more brand, more warm audience, and

more uh more niche down in terms of what

what you're selling and who you're

selling to. So, this is an example of

something might look like. So, on

Monday, and again, you can compress this

like you could make this into one day

rather than five days. It all just like

this is basically the the the stuff

that's going to get covered typically in

a process. This is going to be a

90-minute video. Everything's just about

how much and how many examples you're

going to give. So Monday, it's like our

story, why it's like your story, why we

can help, what we're going to cover in

our perspective shift about how your

approach to solving problems is

different, how our our approach is

different than what you've had before.

Tuesday, it's going to be second

valuable nugget of value, which is

regarding their ability or insecurity.

It's like what are they most afraid of?

What are the thing that they're most

concerned about? The next one is going

to be the second thing that they're also

concerned about. This is typically an

excuse outside of themselves. So that's

like uh one is I don't think I can do

it. Something is this other thing is

going to block me from doing it. All

right. The next one is going to be you

mention your core offer is going to be

coming the next day and then of course

you pitch and then you repitch with some

sort of Q&A which you add more proof in.

That's when you invite past success

stories on. You do mini case studies and

then you restack the offer. All right.

So this is fundamentally how it works.

Now if you're a beginner this is like a

this is flashing Vegas lights. Okay.

We So, by the time you're seeing this,

we should have done a big school launch

for people. This is more or less what I

teach all the beginners to do. And

you're like, "Wait, I thought it was

complex." If you want to do it at scale,

it's complex. If you want to do it

one-on-one, it's the simplest way to

sell. So, hear me out.

You could do this with one person at a

time. And so you could say, "Hey,

instead of calling it a three to five

day challenge, say I will spend five

days with you, doesn't have to be full

days, it can be five 1-hour sessions.

You get five hours of my time to help

you get this goal." Insert goal. On the

first day, you're going to frame the

fact that you're going to make an offer

at the end. You say, "Hey, before you

get going, is it okay if at the end of

this whole thing um I just make you an

offer of what it would look like to work

with me long term?" If they say no, then

don't do the rest of it. Right? But

during that process, you should

understand what their goals are, what

the reasons that the obstacles have got

in the way for them. Um, and basically

all the friction that they've had to

deal with uh in the past. So, this is

basically like a closure framework.

Clarify where they're label them the

problem over their past pain and then

sell them the vacation of the vacation

being what we're going to cops together

in the next 5 days. Uh, explain away

whatever their concerns are, reinforce

decision, and then you frame the sale.

All right. Sorry, that was fast. You can

watch it again on slow. That's what you

would do on the first day. the next two,

you know, two, three days, whatever it

is, uh, you then overcome the main

beliefs that they're gonna have about

the things that are gonna stop them.

You're going to show them one-on-one.

And at the end, you say, "Hey, ask for a

referral. Anybody else who so you can

recap it. Hey, was this great?" Then you

can ask for other people who would like

to go through this free thing with you.

And then finally, you can make your

offer. Hey, remember that thing I I told

you about the game? Do you mind if I

tell you about it now? Now, if you're a

super beginner, you can just ask them,

"What do you think working with me for

$3,000 per year would look like to you?"

then they can tell you the offer and

then you can say, "Yeah, that sounds

good. Let's do that." Right? If you have

no idea, if you have 20 of those

conversations, you're going to have a

pretty decent idea and then you can

start making the offer. So, this is the

easiest way because if you suck at

sales, it's way easier to sell when you

spend five hours with someone building

building value. This is exactly what I

did when I started my first business is

I told people to donate 500 to,000 to

the charity of their choice and I'd

worked with them for 12 weeks. those 12

weeks was one time a week for the 12

weeks and then I you know pitched them

at the end for for staying more stuff.

Now I learned now I should have pitched

them halfway through and I probably

could have done it in six weeks. Lots of

things I learned and so here there's

just x amount of time you need to spend

and you can microwave it with the

prospect. You can just do it in five

days rather than five weeks by just

compressing the time period. So these

are might be headlines for whatever your

free thing is. So it's like free find

your perfect product entrepreneurship

challenge. So you could say if you're a

beginner, hey I'll spend five hours with

you to help you find your perfect

product.

What happens when someone has the

perfect product? They're going to want

to learn how to advertise. They're want

to learn how to put on a website.

They're going to learn how to how to

manage inventory and all the other

things that go with it. When you solve

one problem, you create others, which

you can solve in exchange for money. And

they will believe you because you

fulfilled your first promise. If you're

a marketing agency, it could be free

fiveday find your niche agency

challenge. Like if I was trying to help

people start agencies, a lot of people

are like, "Who do I sell to?" It's like,

"All right, by the end of the five days,

you're going to know exactly who you're

going to sell to. What else you going to

need? You're going to learn how to

generate leads. You're going to learn

how to sell. You're going to learn how

to price all these other things." And so

each of these things, a lead magnet,

fundamentally what this is is a big lead

magnet that gets people to opt in. And

because it's in a short time period,

people like the fact that it's fast,

they're going to get this result. You

can increase their perceived leg of

achievement by saying it's one-on-one.

You can add scale by adding technology

and virtual summits and more automations

and things like that. And at the the max

max leverage version of this is you run

these things on autopilot every hour and

everything is automated and personalized

to the person. That's what the

businesses that do $100 million a year

are doing. But if you're starting out,

you don't have to worry about show up

rates because you can just text the

people and see what time they want to

meet. All right, you can make this very

easy. Weight loss, uh, a plateau buster.

You basically walk them through a

fiveday plateau buster. What they need

to do for eating and and drinking and

whatever else. Addiction, five days to

substancefree challenge. pain five day

pain release life coach five days to get

unstuck it doesn't matter whatever it is

you can usually deliver a tremendous

amount of value in five hours of time or

90 minutes times five of time and this

works so the reason if you're like man

why didn't you put this in the book

because it's really long and there's a

lot of stuff to it all right and so

webinars are an example of this is just

compressed into 90 minutes so instead of

you know day one day two day three like

day one is origin story which you just

put in the first 15 minutes day two is

the big obstacle that Most people are

going to count you, but that uh in the

next 15 minutes, you basically chunk

your way down to 60 minutes, 45 to 60

minutes being the kind of the value

piece, and then the next 30 being the

the pitch with the stack and everything

else. All right, so the benchmark for

most webinars is converting 10% of the

people who show up live. All right,

strategy call. Uh this is one where I

want to be really clear. A lot of people

have kind of butchered the idea of a

strategy call because all sales calls

are just considered strategy calls now.

But you can relive, you can get this by

telling people that you will not ask for

their card on the phone. And this works

very sexily um if you mean it. And then

what you do is you just use your

qualification call as the strategy call.

And so you do qualify what problems they

have and you should be able to provide

value in terms of clarifying what next

things are constraining their business.

Whatever it is, if it's a B2B offer,

it's B toC offer, it's what thing is

preventing them from hitting their

goals. And at that point, you would then

be able to reasonably and ethically

qualify them for a sales call. But now

at that point you have provided value

and then you can make the offer just

being hop on a call with the sales guy.

Now you wouldn't say that. You would say

this is John. John's amazing. He cured

cancer and he you also have cancer.

Don't do any of that. But you get the

idea is you want to edify the salesman

and say that he's helped people just

like them get to where they want to go.

And you want to ideally tie that to

people who've done that recently using

this specific system. And for this you

want to convert 25% or more of the

people who hit on these calls. All

right. Important points. So, uh, the

three beliefs that we always have to

overcome with every single sale, no

matter what, is people point to

circumstances. They say life should be

easy and it isn't, and they get upset

about it. And so, it's like, I don't

have the money, which is circumstancing

because it means that they're not being

resourceful. They say, I don't have the

time. When really, really it just means

that they're not prioritizing. Everybody

has the same amount of time. And so, we

have to get them to take the finger of

blame and point it towards themselves

and say, "It's up to me. It's not about

my circumstances. It's about my ability

to be resourceful, my ability to

prioritize." Right? And so that is what

belief number one you have to break for

people is it's not the outside world,

it's me. All right, the next one is uh

other people should treat me the way I

want them to be treated and everyone

should do what I tell them to. That

doesn't happen. And so we have to say

you are actually the one responsible for

your own life. And so it's not your

business partner, it's not your spouse,

it's not your dog, it's not your

grandma, it's not your employees, it's

you who are the one who are in control.

And so instead of asking for permission,

you need to be asking for support. And

so that's fundamentally the belief that

we have to help them break in this thing

that other people are going to stop

them. So if someone says, "Oh, I

wouldn't be able to do this thing

because of my kids." We have to

basically reorient that and say, "Hey,

this is actually how it's going to help

your kids. Hey, I can't do this because

of my spouse. Actually, this is going to

help your relationship with your

spouse." We have to reframe what they

say. And that would be the second big

belief. The third big belief is going to

be self, which is I can't do this. I'm

afraid, right? What happens if I fail?

And so, we want to get them to confront

the decision, give them the variables

that it takes to make a logical

decision, and make them feel that this

is actually a decision that is not

rushed at all. It's something that

they've been making a long time ago.

Today is just the first day they're

taking action on it.

And so when breaking beliefs, you want

to teach concepts, not tactics. This is

a big mess up and most people do when

they have this free value thing. The

reason is that everyone gets value from

concepts. Only executors get value from

tactics.

So summary, learn how to break the

beliefs, which by the way, the way you

break a belief is you say, "This is what

you used to believe. This is why it's

wrong. This is what's right. This is why

it's right. Proof. Five steps. This is

what you believe. This is why it's

wrong. This is what's right. This is why

it's right. Proof. So provide excessive

value. Teaching concepts that underpin

whatever you sell. This is an education

process to create your ideal prospect

and ward off people who are not your

ideal prospect. So if you get people in

and you're like, "Oh, I'm losing

people." If they are the right people,

that's bad. If they're the wrong people,

that's good. And these can be added to

any sales process in any business to

increase close rates and the average

ticket sold. And so there's a zillion

ways to do this. So I I'll explain it

like this is that once you can create

educational products if you will that

you would give away for free you can

insert them. So if you have multiple

sales in a process between call one and

call two you can give them a video. If

you want them to watch something prior

to getting on a call before call one you

can force them to watch a video. You can

have someone watch five videos before

they talk to you. Like all of this is

just how much friction do we want uh or

how little friction do we need to

provide to get people to buy. We want to

have as much as needed but no more. And

there you go. I already made my my CTA

for you. But you can go to

acquisition.com if you want to grow your

business. But that's my my cutesy way of

doing it. That being said, that

completes free with consumption and our

attraction offers section. Now we move

on to upsell offers.

All right, so we just covered attraction

offers. So these are the first thing

that most people are going to see when

they're entering your business. This is

the stuff that gets leads to engage.

That's why they're big, sexy, free

things. The upsell offers are things

that we're going to reposition for them

to spend even more money. Now, sometimes

this happens immediately, sometimes it

happens, you know, uh, a few days later,

sometimes a few weeks later, sometimes a

month later, but either way, we're going

to be using four of my favorite upsells.

So, this is step two in our money model

process. So, here's what they are.

Attraction offers or with an attraction

offer in place, you've got customers in

cash. Now, we want to maximize 30-day

profits. So, what do we do? Answer: We

make more money. To do that, we make

upsell offers. And when it comes down to

it, upsells just mean whatever we offer

next. It's all an upsell is. And so,

when an offer solves a problem, another

appears. You upsell the solution to the

problem that your first offer reveals.

So, every offer opens the door to an

upsell. Even upsells o open the door to

more upsells. And often upsells make up

the majority of the profit. This people

don't understand. If the objective is

that we can break even, obviously you

want to make as much money as you want,

but you don't want to make more money on

a few customers when you can get 10

times the customers and then make way

more on the second sale, right? And so

often upsells make up the majority of

the profit, even if that's not the thing

you sell the most of. Think about in

terms of volume. I might sell 10 times

more of my front-end offer, but 10x of

my profit comes from my second sale.

They can make or break a money model.

And so, let me show you how much. So,

here's some examples. So, this is a

classic burger, fries, and soda store.

All right. So this is a our very sad

burger shop owner. He sells a burger for

two bucks. This cost on the burger is

$1.75. He makes 25 cents a profit. He

cries himself to sleep every night. Very

sad. Now he has a happy tier. Isn't that

nice? Of going from 25 cents per sale to

$1.75 per sale by adding in an upsell of

fries and then upsell of soda and the

upsell of quantity of do you want to

superers size your whole thing? So it's

like do you want to make that a meal? Do

you want to superers size that? Boom.

upsell one, upsell two. And the thing is

is that when they make this upsell, look

at how much more they make per sale. A

lot more. And so the end result of this

goes from 25

to 8x the gross profit per sale. They're

making way more. Two, $1.75 from 25

cents originally. And so the thing is is

that you may just be one upsell offer

away from making yours into a dynasty

like theirs. You just have to figure out

what's your fries and Coke. And if you

don't, someone else will. Let me talk

about when they fail. Upsell offers fail

or feel cringey. When you offer

something that they don't want, so

that's either too different or doesn't

solve their existing problem. You offer

it at the wrong time. So that's before

they've experienced the problem. You

say, "Hey, you just had a steak. Do you

want another steak?" They're like,

"Well, I'm not really hungry anymore."

You already solved that. You're trying

to solve the same problem. You offer it

the wrong way, which is they don't

believe you. They're like, "Sure, that

would be nice, but I don't believe you

specifically." Or it's a combination of

the above. This is when it fails. Now,

what to sell, which becomes the next

upsell offer question. More of what they

just got. Think quantity. So that's uh

one burger to two burgers. Better

versions of it. Think quality. So this

is why have a mystery meat burger when

you get a sirloin meat burger, organic

burger or newer complimentary stuff.

Think different. This is do you want

fries and a soda with that burger?

Fundamentally that's how this works. So

the objective of the upsell is to

maximize profit per customer and to send

clients into backends. Note these

structures that I talk about with the

upsells work anywhere. I just prefer

them as ascension tools. A lot of these

things could also be frontends. Each of

the offers that I explain in money

models when putting them together, which

again, the money model is putting them

all together. Some of the stuff that

I'll give you in continuity, you can use

a front-end offer. Upsell offers, you

can use a front-end offer. I just place

them in the places that I use them most

commonly, and I think that they work. At

least they have worked the best for me.

So, this is our lineup. We're going to

start with the classic upsell. We'll do

the menu upsell, the anchor upsell, the

rollover upsell. I use all of these. I

have made so much money on these upsells

and if you follow what I lay out, you

probably will too. And I will probably

get more animated in these because I

just love these so much. All right, with

that being said, the classic upsell.

All right, the classic upsell as us. How

I learned it, description, examples,

important points. Here's my lovely

visual thing for the classic upsell. How

I learned it. Here we go. So, uh, I had

a mentorship, whatever you want to call

it. It wasn't really a mentorship. I was

just getting paid and I took him as a

mentor. He didn't really care about me

at all. Um, uh, at a Furcoat dealer and,

uh, he was a fourth generation furrier.

And I, uh, remember watching how his

son, who is my friend, that's how I got

the job. Uh, I would be brushing fur

coats all summer in the heat in a

warehouse. Uh, unbelievably mind-melting

stuff, like boring beyond belief. And

the thing that I kept thinking was that

every single one of these coats was $200

and he had 7,000 coats in his warehouse.

And I was like, "Holy cow." I was like,

"That's $1.4 million that he's making

just for storing coats for the summer."

I was like, "This is pretty sweet." And

I know what I was making. And it was not

$1.4 million for storing these coats.

And so the offer that they had to get

people in was that they would get people

to store their coats. And they said if

they stored them, they would get free

ear muffs, free ear muffs. So people

were like, "Oh, that's cool." And so

people would come in for the free ear

muffs. And then they would say, "Uh,

we'll store and condition the coat for

you, and it costs 30 bucks to, uh, store

the muffs." Now, they'd come in for free

ear muffs, but it's the summer. So then

they would basically hand them the ear

muffs and then take the ear muffs back,

and then they'd say, "You don't want

anything else, do you?" And so by

saying, "You don't want anything else,"

they would assume clothes, the winter

storage, the conditioning, and the ear

muffs that went with the sale. And so

that is when I learned you can't have X

without Y. And that is the fundamental

basis of the classic upsell. You don't

want burgers without a fries. You don't

want burgers without a Coke. You don't

want a fur coat without storing it. You

don't want a fur coat without

conditioning it. It'd be like taking a

car and not getting it serviceed. Like

you don't want X without Y. And so I

learned a couple of things. One was the

structure of a classic upsell, which is

you don't want X without Y. But

tactically, I learned the no sale. All

right. And so the way that this works is

basically people have been conditioned

over the years to to say no to salesmen.

And so when someone says you don't want

anything else, most people just

immediately say no. And so what we want

to do is basically imply that the else

means in addition to the thing we just

offered you. And by doing that, you get

people to say yes by saying no. And so

these people who came in to store their

coats agreed to storage, conditioning,

and the free ear muffs, which then got

stored at a $30 fee for

saying no, that you don't want anything

else. So the no sale is what I ended up

calling uh a different sale, which may

sound confusing, but bear with me. So,

if someone came into the gym and they

said they ultimately they declined every

service offering we had, right? Which

sucks. You would then try and salvage

some sort of goodwill or rapport because

this person walked in as basically

walking back out, which sucks. And so,

you say, "Hey, listen. I still want to

help you for 6 weeks." And so, why don't

we just do this as an at home program?

All right? So, I'll give you this thumb

drive that has at home workouts that you

can follow and then come in in a couple

days and we will give you a nutrition

consult on the house. All right? but we

just want to help you out and hopefully

maybe in when things are a little less

crazy or money's a little bit better,

you can come back and at least you'll

have nice things to say about us. And so

a lot of people would say yes to that.

And so when they showed up to the next

appointment, which is nutrition consult,

we would still close the same percentage

of them as we did for normal customers.

But here was the cool thing. We actually

closed them at a higher average ticket.

And so the people who bought services

and then bought supplements average $200

a ticket. People who didn't buy services

and then bought supplements average $300

a ticket. And so to me, my lesson from

this was that we tried to solve their

problem, not in a way they wanted to

solve it. So they wanted to lose weight,

but they wanted to have a magic pill

rather than work. And so we needed to

have the magic pill available for them,

which in their mind would be

supplements. Now, obviously, we always

say, "Hey, you got to make sure you got

to eat the food and all that stuff." But

people hear what they want to hear. And

so the thing is is the magic behind this

is that we turned no sales into sales by

just offering them something else. So

description. So what you do is you

provide a service for free that you can

monetize another way. So this works for

onetime services or even recurring

services provided the recurring stream

is high enough margins to pay for both.

Different way of saying it essentially I

give you thing A for free in exchange

for buying thing B or I give you thing A

for free and I will encourage you to buy

thing B or I give you a thing for free

as long as you continue to use thing B.

Any of those things. So the earmuff

thing, he says, I will give you these

free ear muffs and I will encourage you

to storage them. That's what that was, a

classic upsell.

So, if we have a lemonade stand with our

classic upsell, we say, "We want to give

you a free cup of lemonade." Upsell one

might be, "Do you want lemonade ice

cubes to make it cold without diluting

it?" Now, of course, you could give cold

lemonade, but then you wouldn't have an

ice cube upsell. Upsell two would be,

"Do you want a stainless steel to-go

container to keep it cold for you? And

we'll donate $1 to help children's

cancer to anyone who takes the mug. You

also get 20% off refills." Upsell number

two. Right. So, you don't want lemonade

in a little paper cup. You want a nice

steel mug. You don't want diluted down

lemonade. You want lemonade ice cubes.

Right? Each of these things are just

natural upsells that could happen. And I

prove this point because whatever it is

you sell, there's an upsell that's

available for you. All right? So,

storage

in this business. Um, I have a whole

story around this, but I tell this in

the book, so I I'll give you the brief

version of it, but in the first few

months of me being in business, I was

struggling a little bit. And so the

business owner across the street was a

massive storage unit and he ended up

becoming a member of my gym because it

was super convenient for him. And so he

asked me, you know, hey, how much time

you got left to live? And I was like,

not that long. And so he said, "Come for

a ride with me." And uh he took me to

his facility and he said, "Uh, how much

does a free month of storage cost?" And

I was like, "I don't know, free." And he

was like, "No, $127." And so as we

walked in, he asked Judy, the front desk

girl, he said, "How much does a free

month of storage cost?" She was like, "

$127." And he was like, "That's right."

And so I was like, "How does this even

work?" And he was like, "Okay, so you

come in for a free month of storage."

He's like, "What's the first thing

you're going to need?" And he's walking

me through the facility and pauses and I

was like, "I don't know." And then he

taps the lock on the door and I was

like, "Oh, a lock." And he's like,

"Right." He's like, "You can't have any

kind of lock because there's only one

kind of lock that fits the store, the

locks that I sell at the front." He's

like, "For $47." And he was like, "Oh,

okay. Got it." And I was like, "So you

make 47 people coming for the free." I

was like, "But where's the other, you

know, whatever it is, 80 bucks." He's

like, "Good question." He's like, "Now

that you have your lock, what else are

you going to need?" I was like, you

know, I'm like, "I don't know." He's

like, "Well, you probably need some

boxes for all that stuff that you have,

which I have conveniently here. You

don't want to go to another place down

the street or have to order them on

Amazon, wait for them to come, break

them, box them, all this." He's like,

"We have them right here available for

you." And I was like, "Oh, right." He's

like, "And we also have uh hand tow uh

the the hand trucks that you can use to

move your stuff in and out at your

convenience for a fee." And I was like,

"Oh, right." He's like, "You know, and

uh this stuff's probably really valuable

for you because otherwise you just throw

it away, but it's valuable enough that

you pay to store it. Uh we obviously

guarantee up to $500 in damage. Uh that

could happen if there's a flood or

anything should happen or theft. But if

you want, you can have a million dollar

storage fee for just an extra $10 a

month.

And he paused and he was like, "You want

to know my margins on that?" I was like,

"Uh, okay." And he was like, "90%."

And so he explained that. He's like,

"And you know what happens a lot of

times is that people's eyes are bigger

than their stomach." So they come here

and they think they're going to be able

to fit all this crap in a locker this

big. Often times they need a bigger

unit. It's also a little bit spacier.

And that way they can get their stuff in

and out because they don't realize if

stuff's in the back, they got to move

everything out just to get to it. And so

he walked me through everything every

single upsell that they had and I

realized that that's how a free month of

storage created $127. And so many

businesses right now just like the runar

story just like the storage unit. There

are other things that a customer must

purchase. They will buy them. It's just

question will they buy them from you or

somebody down the street. So weight

loss. So for us upsell number one was at

the nutrition orientation. We would sell

them supplements. We would then sell

them nutrition plans. That was and the

immediate version for me was I wanted to

sell supplements because I had no more

delivery. I could immediately hand it to

them, make the profit back and usually

what I made on the supplements covered

the cost to a car customer. So just that

sale covered my my cash flow and I

hadn't even started servicing them yet.

And so a lot of you guys have these

little things that are available. Like

if I have a physical therapist, maybe

you give four free treatments as your

offer. That's a banger offer. A lot of

people might consider that. But upsell

one is you're going to need these

orthotics, these bands, these braces,

these oils, this kinesisio tape, all to

maximize the effectiveness of the four

treatments. And so they come in for the

free month of storage, but they need

their lock, they need their insurance,

they need their boxes. Just think about

those things for yourself. If you're in

education, it's like I offer uh group

coaching, provide information in a

community for free, indefinitely as long

as you keep using my software. By the

way, this is basically I mean

fundamentally what we do with school. We

do all this stuff for free and then just

use school to to help monetize. Okay. Uh

free verse discount note is that with

the classic upsell, it works either way.

Same as normal. So, a friend of mine had

a very successful weight loss chain and

they offered services for $5 a month for

their weight loss. And they had doctors

and nurses and all stuff there. And I

was like, "That's insane." And she was

like, "Yeah, because we don't make money

on the weight loss services." And I was

like, "What do you mean?" She was like,

"Oh, we sell like five grand in

supplements on the second day." I was

like, "Oh." So, that's where I learned

that's where I really learned a lot of

the really Jedi stuff that I know from

um supplement sales. Uh I learned from

her. And I paid her top salesperson uh

$500 an hour for two hours to tell me

everything she did to sell supplements.

And you know what's crazy? When I told

her top salesperson that I would pay her

$500, she was like, "$500?" She's like,

"Just to talk to you?" And I was like,

"Yeah."

She thought I was an idiot. I'm I'm dead

serious. She She looked at me like I had

three eyes on my head and she was like,

"It's your money." And so she just

walked me through every single detail of

what she did to sell supplements. And

that $1,000 two hours that I paid for

made me millions.

And so I highly encourage you, sometimes

the best people to learn from are people

who aren't even selling information.

just offer to pay them to learn what

they do in their particular niche or

skill. And because people are not used

to doing that and you can charge, you

know, you can offer way more with the

val, you know, with the with the money's

worth to you. You can make way more

money that way. So, uh, I learned from

her that she had service that she

basically gave for a nominal amount of

money because she didn't even care about

it just because that drew people in and

then they'd sell the supplements and the

food and the bars and the shakes. Um,

and yeah, they were, you know, they had

doctors and nurses working there. That's

how they made the money. So, important

points. So, number one, if you make

thing a free, then you got to be able to

give it away for free. If someone comes

in and wants the free workouts, you have

to deliver the free workouts. Now, you

can't say you have to buy this other

thing, otherwise it's not free. You want

to strongly encourage the thing, but

that's fundamentally how it works. All

right? So, make sure that it doesn't

cost you a lot or anything at all. Uh,

like that thumb drive that we gave, like

you can you want it to be something

that's cheap, uh, but still valuable.

The next thing is make the upsells the

next natural thing that they would need

to buy. That's the boxes, the large

units, the locks, the the insurance,

things like that. The weight loss

clinic, continuity of service,

continuity of supplements, done for you

meals, hormone treatments, etc. All of

those things were all part of classic

upsells that went through. You can't

have X without Y. You can't have this

weight loss service without these

supplements. Just think you can't have X

without Y as your as your mental

framework for what the next thing I'm

going to offer is. All right. This play

works so well because the perception of

how essential or required the next thing

is. All right, so this is the key point.

If supplements is core to how someone's

going to get results with the main

thing, the likely they buy is very high.

So if you remember the uh minimum

package for the rental car story I gave

you, you want this to feel as required

as possible. Again, you don't want to

make it required because then it's it's

it gets shady, but you want to strongly

encourage people to take these things to

get the best results, which ethically

they should be able to get better

results with whatever your upsell is.

All right? And so, how seamless the

upsell process is for the prospect, if

you make it frictionless, you can get

sometimes 80% plus of people to take

these upsells. I personally prefer to

have upsells that have very little

operational drag so that I can

immediately offset cost to get it

getting a customer or it becomes that's

my major profit stream. It depends on

what the objective is for your business.

Boom. Summary works on the front end as

a back end works as an internal play

meaning you can just upsell your

existing customers. That's basically

what the storage thing with with the fur

coats was. Many of those people were

existing customers. You can just upsell

those people. Um if you suck at sales

this is not a hard sale to make. Uh

there's a lot of goodwill in this play

because you just make sure that you

close the upsell. Like it's like, "Hey,

let me give you this thing. I'm giving

you this free earbuff. Why not take it?"

But of course, you got to take this

other thing, too. Um and if you aren't

getting 80% plus close rates, you're

doing it wrong. So, that's my big

benchmark for you. If you're getting 30%

to take it, you're not you're not making

it assumed enough. You're not It's It's

not clear enough to them that this goes

with. So, think about like that. It has

to go with if you go to McDonald's, I

would bet you that 80% of people are

getting fries and a Coke. You want you

want a very high uptake rate on the

people who buy the next natural thing.

Think of this as the thing that goes

with the thing. Uh and give the thing

away for free to make sure that all the

thing that goes with the thing you can

make the money on. All right? And so the

nice thing with this is that it gives

you a lot of upfront customers.

And that is the classic upsell.

All right. So we just covered the

classic upsell. I think this next one is

my favorite one in this whole training

which is the menu upsell. Let's dive in.

So, how I learned a description examples

important points and summary. So, there

are four steps to the menu upsell. We

unsell what they don't need, prescribe

what they do need, ask if they prefer A

or B, and then make it easy to pay. So,

this is me getting super tactical with

you in terms of how to upsell stuff like

a pro. I have done so many upsell

consultations in my life and this works.

I have used this sales process in many

businesses like this slays. All right.

So here's how I learned it. So this

whole process took me call it years to

learn every single piece of it. But

every single part is like a a Lego thing

that builds onto itself. So the first

thing that I the first thing that I

learned was uh well I'll tell you the

story and you can go along with me. So,

I had that guy who was making

supplements uh and he was making 80

grand a month or whatever. And I was

like, I got to start selling

supplements. And so, I buy $5,000 of

inventory. And then, of course, no one

buys my products. So, I'm there. I've

got these full shelves. I'm I'm reading

all this stuff about retail and

packaging and make sure they're twisted

to the front, but no one's buying these

things. And um you know, the only sales

I was getting were like pity sales and I

could tell the difference. They were

like, "This guy's so broke. Sure, I'll

buy a protein from you." Right? And so,

I would I was getting all the signs. I

was like the hypertrophy and lean body

mass and you know creatine levels and

what like mind you I'm selling 70% of

women here no one cared and so I just

went on a particularly bad day I went 0

for 19 on nutrition consults so the way

that I would do is I would sell services

for two or three weeks at a time and

then I'd schedule all my nutrition

consults in one day and so I just go

back to back to back to back to back and

so I went 0 for 19 so I'm feeling

horrible about myself and this lady

comes in and she has a fat ring an

expensive purse and I was like if I

don't close this woman I will kill

myself. Not really. I will just continue

to try. But I felt I was like, I have to

close this lady. And so, we get through

the nutrition part and I'm so like beat

down at this point that I was like,

"Hey, um, do you want vanilla or

chocolate for your protein?" And she

just looked at me and she was like,

"Which one do you like?" And I was like,

"Chocolate." And she was like, "Okay,

I'll take that." I was like, and I slid

across the counter and I was like,

"Okay." And then I was like, uh, for

pre-workout, do you want kiwi or

strawberry? And then I remember she had

asked me, I was like, I like kiwi. She's

like, I'll take one of those. So I like

put that. And now I'm afraid that I

didn't want to scare her away. And so I

remembered that she because everybody

had already bought stuff before and I

had all their contracts here because if

someone's payment didn't go through, I

would meet them on the nutrition console

like, "Hey, your second payment didn't

go through. Let's make sure that's so I

had everybody's cards right there." And

so I'd be like, "Oh, um, do you want to

use the card that ended in 4696?"

And she was like, "Yeah, that's fine."

And so I just slid them across the

counter. She grabbed her tubs. She

walked out the door and I was like,

"Holy I know how to sell

supplements." And the craziest thing in

the world is that I didn't even talk

about the products. I just asked her

what flavor she wanted. And so that was

the first thing. I learned two things on

that one experience. Number one was I

learned the A or B sale, the which one

did you prefer sale. It was an assumed

close. I closed everyone else the rest

of the day. I closed another like 12

appointments, whatever it was. I closed

every single person the rest of the day.

I was so pumped. And I closed I I I

learned the card on file close, which

was, oh, if you have someone's card on

file, I didn't want her have to take her

take her wallet out or like think about

the purchase again. I was like, card on

file? She's like, sure. And so, it made

it really easy for people to buy. So,

those are the two first things I

learned, the AB upsell and the card on

file close. Boom. That was the first

thing that I learned that became part of

the menu close. The second thing I

learned, and this is much later, so now

I'm I'm kind of a closing machine. I'm

closing5 to$10,000 a day when I would do

my supplement sales days. All right? And

so now I've got this lady who comes in.

I got my I got backto-back appointments.

So I would be taking two appointments

every 30 minutes. So I would do 48 sales

consults in one day, oneonone or sorry,

not oneonone, one two, four per hour.

And so I would go through these. And so

this so I had to be on time. And so this

lady comes in and she will not stop

asking me questions. She's like, "Well,

what if I'm what if I'm traveling? What

if I don't have this with me? What if

she just asked me all this stuff?" And

she's like, "Well, do I take this one at

night and do this one in the morning?"

And I was like losing my mind. And so,

finally, I just turned her meal plan

over and I just wrote like, "Take two of

these at this time, take two of this at

this time, one of these at this time,

blah blah blah blah." And this was how

much, when, how many, what if it's

working, what if I'm at home, etc.

Right? So, I wrote down everything they

had to do, and I went late. So, now the

next lady, and this was the tough part

because the next lady had come in

already. So, she's sitting there waiting

for me to finish with this this chatter

box. And so the next lady comes up and

I'm like, "Okay, I got to get through

this one quick so I can get back on

schedule." And then she just says, "Hey,

can you do what you did for that lady

for me and I was like, "Okay, great."

But here's what happened. The first

lady, I had gone through the pitch for

every product and then she'd asked all

these questions. This lady, I just said,

"Shoot, to get back on track, I just I

said, "Okay, you're going to need two of

these. You need one of these. You need

two of these. Great." And at the end, I

said, "Caught on file." And she was

like, "Yeah, that's fine." And then she

bought everything. And I was like, "Holy

crap, I didn't even So, what I learned

was detailed and personalized

instruction explaining post-purchase

behavior increase the likelihood that

they buy more than vague and general

instructions. So, basically, this is how

you're going to use this thing assumes

the purchase. Why am I going to spend

the time to say you're going to take two

of these in the morning, one of these at

night, and then the person's like, "Oh,

I'm not buying any of it." it'll feel

like a tremendous waste of time for

them. So again, feeling that like it's

assumed, it's part of the thing.

Required, no. Strongly recommended, yes.

And so that was the third tactic. I

learned AB clothes. I learned the card

on file from the first lady. And then

this one, I learned about detailed

prescriptions. So I call this the

prescription close. The third piece that

that completed the four-part puzzle that

became the menu sale, and this is the

most deadly of them. It's so good. So

now I already told you about the seating

thing earlier. That's like I it's that's

so savage and it's still not good enough

to make these four into what the menu

close is. All right. So this one So now

this fast forward a little bit more. So

now I'm a closing machine. I'm

prescribing things. I'm getting

everybody to buy. Right. So now I'm on

the road launching gyms and so I would

get good enough that I would I would

just sell out of everything I had.

Right? And basically whatever I had

left, I'd be like, "Oh yeah, you want

kiwi and banana and like just whatever I

had, I was like, "These are the ones

you're taking." So I could just sell her

all the stuff I had. And so um I sold

out pretty early this day for a couple

key products. And normally it would have

been fine because I would just like

basically recommend different products

or different flavors that I I hadn't run

out of. But this lady, her friend had

come at like 10:00 a.m. and she was

coming at like 3. And so I'd already had

like 20 more consults between the first

lady and her friend. and her friend was

just like, "Hey, just give me all the

stuff you gave me. You gave Sandra." And

I was like, "Uh, okay. Uh, don't have

that." So, what I started doing, I said,

"Okay, well, I don't have this." Cuz I

ran out. I was like, "But you can get

this from down the street. It's not

going to be as good, but it'll get you

through the through the program." And

this one you can get from this store.

This is the brand you want. It's not

going to be as good, but it'll get you

through the thing. And so, she was like,

"Okay, thanks so much. I really

appreciate it." But after telling her

the two or three things that she could

get from somebody else, I then was like,

"But you're going to want two of these,

which you'll take in the morning, one of

these, which you'll take at this time.

Great. You want to use the cards you

have on file?" And she was like, "Sure."

And so what I realized was that I went

out of my way to cross out what she

didn't need. And this built enough

goodwill to upsell what she did. And so

what I realized later also because she

it just went like water. I could like I

can like I have enough sales chops to be

like that was a little too easy. like

that was way easier than normal. And so

I started keeping products just to cross

them out. And so I'll explain it like

this. It's not that I I would have

products that we necessarily wouldn't

sell. It was more that I had some

products that I knew almost no one was

going to buy. I'm selling predominantly

females. So I had weight gain. Now if I

had a guy who's trying to get bigger,

then sure, but like that would be like

one out of a hundred. And so for 99% of

women that were coming in the door, I'd

be like, "Well, you're not trying to

gain weight, are you?" They'd say, "No."

And I'd cross out the weight gainer. And

then I'd be like, "Hey, well, you're not

trying to get any chest air, get a

deeper voice, anything like that."

They're like, "No." I'm like, "All

right, well, we're not going to use the

test booster." Right? And so I would

cross out two or three things on my menu

and then I would say, "Great, you can do

this." Now, I did have some options, for

example, fish oil where I would say,

"Listen, I like it was a low margin

product." And so I would rather not make

$3 on fish oil and make 40 on a fat

burner and give the fish oil away to

close 100% of people on the fat burner.

And so that was how I realized what I

call unselling, which is you start by

telling them what they don't need so

that they believe you when you tell them

what they do need. And so that is what

created the unsell prescribed ask what

they prefer, make it easier to pay menu

close. So you unsell by selling

customers what they don't need so that

you can emphasize what they do. Here

instead of asking if they want to buy or

not, you explain what they don't need as

a way to get them excited about what

they do. So unsales vary based on

customer needs. When some options work

best, you can cross out the rest. And

that rhymes. So after telling them what

they don't need, you then prescribe what

they do need. So all the unselling is

the crossout. Then we move to

prescription. So in prescription, we

tell them what they do need.

Prescription upsells work well when

offering a choice is inconvenient and

you have only one thing that solves the

problem. So if you have only one thing,

it's like you're only taking this fat

burner. There's no flavors for the fat

burner. So you're just saying this is

how many you need to take at this time.

Prescription upselling has two important

components. First, you have to explain

how it integrates with the offers they

already bought. So they already bought

service. This is going to integrate with

how you use our weight loss services or

workouts or whatever. Second, you

personalize in detail how to maximize

its value for them. So here, instead of

asking if they want to buy it or not,

you explain how to use it as if they

already have bought it. Again, we remove

the option of not buying to lower the

chance that they don't buy. As uh and

and I once uh and once I've told them

exactly how they're going to use

everything,

we then ask them if they prefer A or B.

So, we say, "Okay, what are your

preferences?" The AB upsells work for

multiple offers that solve the same

problem. All right? So, you make AB

upsells by asking preference. Instead of

asking if customers want to buy a

product, yes or no, we ask which one

they prefer, A or B. So either choice

results in an upsell. So basically, when

you give people the option not to buy,

some people don't buy. So I give the

option to pick between two buying

options that are simpler. And once they

know which one they're buying and how

they're going to use it, I suggest the

easiest way for them to bay. Boom. We

give the card on file close, which is

the cherry on top of this upsell

sweetness. All right. So I literally

ask, do you want to use the card on

file? Just like that. So here, instead

of asking if they want to pay or not, we

refer to ways they have already paid in

the past. And this gets more people to

buy because it lowers the hidden costs

of buying. Picking out which card you

want to use, taking it out, being

reminded of ugly buying decisions in the

past. Because a lot of times some people

like there is a minor decision that goes

when you say yes and then there's a

second yes when you reach into your

pocket and then you're looking at your

card and then you grab the like there's

a there's another decision that happens.

We avoid that entire decision-making

process by just saying want to use a

card on file. Yes. and we remove the

pain associated with making the

decision. So, even the hassle of buying

stuff in a rush. So, sometimes I'd have

people who are about to get, they're

like, "Hey, I got to get to this." I'm

like, "C on file?" And they're like,

"Yeah, yeah, it's fine." And so, if I if

I weren't able to do that close, they'd

be like, "Uh, I'll pick them up later

and I'll come back and lose the sale."

And so, it's also the fastest way to

close. And that is how that works. So,

let me give you some examples. And these

are fire as

All right. So if I'm a massage

therapist, I would unsell I would say,

"Hey, we have a lymphatic massage

available, but I don't think you're

you're pregnant or just out of surgery,

right? So we can cross that out."

Fantastic. So then we'd prescribe. So

since your shoulder hurts, we'll heat

you up first, then we'll hit you trigger

points, and then after that, we'll do

some dynamic stretches. So that's a

prescription. Now we say, "So would you

rather do it before work or on the way

home?" Then great. You want to use a

card on file? Done. If you're like, "I

can't AB." You can absolutely AB

anything. And I'll show you how to do in

a second. All right. So, I'll give you

another example. Dog food. So, uh you're

not going to need the small bag of puppy

stuff. You've got a big dog. So, you

don't need these vitamins either because

we've got that in the food already. So,

you don't even have to worry about that.

They're like, "Oh, wow. So nice of this

guy. It's already covered inside of the

food that I'm buying." Then we say, "But

what you're wanting to do is give your

dog one of these joint shoes at each

meal." All right. Every 90 days, you

give them one of these wafers for

heartworms. Also, make sure to bring

them in back next month, and we can get

that booked right now. Does your dog

prefer chicken or beef flavor? Great.

Want to use the card on file? done

digital products. So, uh, listen, you

don't need all eight courses yet. You

just need to solve X, Y, and Z. So, I

tell you what, I'll send you some free

stuff that solves X and Y, and you'll

just need one course to cover problem Z.

But to solve Z, you're definitely want

to do the course in this particular way.

Can you put an hour today towards it?

Okay, great. So, this will prevent any

other Z problems from cropping up later,

A or B. So, would you rather have direct

message or phone support? Okay, great.

And would you rather start today or

Monday? Got it. All right, awesome. Use

your card you have on file. Done. So,

you can use that four-step process with

anything. Now, important points.

Anything is A or B sellable. Do you want

to start on Monday or Tuesday? Do you

want to have John or Amy as your as your

person? Do you want to do your workouts

in the morning or the evening? Do you

want paper or plastic? Black or white,

cherry or strawberry? It doesn't matter.

Whatever it is, if you have one thing,

you can think about particular features

that vary within the business. You want

phone support, you want chat support, it

does not matter. You can always make

something A or B sellable so that you

can have a preferential close. If you

make an airb offer, I recommend adding a

nudge. So that was when the lady said,

"Which one do you prefer?" So this is

where you say, "I like strawberry. A lot

of people like Amy. John's really good

with high schoolers." Right? So you make

a nudge based on the customer's needs.

So uh do you want chicken or beef? A lot

of the big dogs like beef. Done. It's

just like you don't you want to present.

So this is what happens. We present the

illusion of choice and then we remove

the friction of choice by nudging this

one. So they have the illusion. Yes, I'm

buying something. But then we do this

and they're like, "Great. I don't have

to think about that. Sounds great." If

you go to a restaurant and you're like,

"Hey, uh, do you want uh flambe or do

you want creme brulee?" And you're like,

they're like, "Most people get the creme

brulee." Or we get a lot of great

reviews for the creme brulee. People

always come back for the creme brulee.

If you say that right after making the

choice, we know I got the illusion, but

then this is the one that they want me

to buy, which might have three times the

margin. Now, if you sell out, this is a

pro tip for me. Two things. One is if

you sell out of something, you can then

just nudge stuff that you're lower on

inventory. So if you've got three

bottles of this and 25 bottles of that,

just nudge differently. Now, if you sell

out completely, this is something I

learned later if it's physical products.

Um, or if you're at capacity for your

service, take payment and deliver late.

I mean, not deliver late in terms of

expectations, but deliver at a delay.

And I found out that people cared way

less about it being a delay and care way

more about missing expectations. And so

if I said, "Hey, I'm going to take this

order for you so you get exactly what

you need. You're going to get in the

mail in seven days." They were fine with

that. I thought that if they didn't walk

out with it, no one would buy. Not the

case at all. People were totally fine

buying if I set the expectation. Now, if

I said they're going to come in seven

and they came in 10, they hated me. They

If I said seven, they came in four, they

were happy. And so, if you have a

service thing and you say, "Hey, you're

on the phone. You know you can only take

seven people in a week and you already

have eight sold." Then you're like,

"Shoot, I can't take this guy on, but I

don't want to miss this sale." Take the

deposit, start him in 14 days. Now, this

is something that I learned later

because I had to teach my staff this

process. And so, what I found out was

that employees love unselling because

it's like it's because you feel good,

right? So, you're talking to the

prospect and because everybody basically

it's like here are your homie hookups.

Everybody wants to hook up a customer

because then they get a little bit

authority, a little power, they get

rapport with the customer, all those

things. And so, you say, "Hey, I'm going

to help you get a homie hookup by

design. So, these are the three things

that you can cross out and you these are

the two products you can tell them to

buy down the street." And now once an

employee doing it, it actually gets even

more powerful because if it's the owner

doing it, then they're like, "Huh?" If

an employee does it, it's very common

for employees to not have the best

interest of the business at heart. And

so we lean into that bias that most

people know of that they're like, "Hey,

don't tell the boss." But now when

they're saying, "Don't tell the boss,

but you do need these ones." The whole

time it's scripted. If you have two

options, so this is what happens. You're

like, "Okay, what if I have two options,

but I want people to buy both." All

right. So the way we think about this,

so there's the economist that made this

amazing case study on this. So they had

their print stuff and they wanted to

offer a digital offering of the

economist, the subscription that was the

most profitable people. They could they

could basically make more gross profit

on print relative to the price. So they

could charge more for it relative to the

cost than they could on digital because

people's perception of digital is lower

in terms of value. Thinking people would

buy both, the economists offered the

following. So they said $59 a year for

the digital subscription and $1.25 per

year for digital plus print. They

figured everyone would take that offer,

but everyone just took the $59 a year

digital and said, "Don't need the print

anymore." So, their print sales

plummeted and as a result, they made way

less money. Bad for them. So, this is

what they did to fix it. They added a

decoy option in the middle.

Now, the numbers here is just so that

you can think about whatever you want in

terms of relative price, but the actual

thing that they did was they had a $59

per year digital, the $125 per year

digital plus print. But this is the

decoy they added a print only for 125 a

year. Meaning they took their best offer

and just cut it in half but kept the

price the same. And so now if you pay

125 for either of these things now

you're like well you know what I just

basically get the digital for free here.

Whereas here I have to pay for it. So

now this feels like the better deal. And

then they fix the sales and then way

more people took option C. So simply by

adding the middle option they got more

people to take both. And so right now,

if you have two things and you're like,

"Well, how do I get them to buy both?"

Add the third offer that's the same

price as both with only one. Bottom line

is that you present three options,

option A, option B, and option C, which

is A and B. And you make the price of C,

A and B, the same as the more expensive

between A or B. All right? So long as

you price the three options to preserve

your margins, you make customers choice

easy. And then you sell both. Before

people take this, after more people take

that. So money upsells work best when

you have multiple offers available. Many

upsells combine four tactics. Unselling,

prescribing, AB offer, and the card on

file close. Unselling lower margin stuff

where appropriate incentivizes higher

margin upsells. Encourage employees to

unsell and game the system on purpose by

design. Nudge new customers towards the

thing that makes sense for them or the

thing that you have the highest margins

or the thing that you're running out of

or that you're not running out of uh in

terms of directing their buying

decisions. That is the menu upsell.

So, we just covered menu upsell, which

is one of my favorite upsells ever. The

anchor upsell is one that is so

powerful. It's one of those like very

simple ones that can make you a

tremendous amount of money. And so, what

the menu upsell has in elegance, the

anchor upsell has in brute force. So,

let's dive in. Here's how I learned it.

Description, examples, important points.

Same as before. Let's rock and roll. So,

I had spent five years plus in casual

clothes, sweats and a tank top as a gym

owner. Like the nicest thing I ever wore

was a tank top. And so, when I started

Gym Launch, um, somebody uh that I knew

advised me to look professional. He

said, "Listen, no one's going to listen

to you for business stuff if you look

like just a gym rat." And so, I said,

"Okay, I'll listen to you." And so, he

said, "Don't worry, I've got a guy at a

suit shop um that I know and he'll hook

you up." And he told the owner I was

coming. So, I mentally budgeted 500

bucks for a suit. So, I was like, "This

is a lot of money." So, you know, I'm

I'm going to I'm going to ball out for

this. So, I entered the shop, made some

small talk, and he was like, "So, what

do you want?" I was like, "I want a boss

suit." He was like, "Okay, mind you, I'm

like 26, whatever." And so, I tried, you

know, so he gives me the suit. I try it

on. I felt cool. He's like, "How do you

feel?" I was like, "I feel like I feel

like a boss." And he's probably laughing

at himself. So, anyways, I'm looking at

stuff in the mirror. And so, then I like

kind of look down at the tag that's on

the arm. And when I pull it over, it

says $16,000. And I still can remember

the blood just draining from my face

being like 16 grand. I was like, "That's

a car."

And I was like, "Oh god, like what did I

get?" Cuz my friend had referred me. So

I was like, "I don't want to look like a

fool here." And they, you know, they had

prepped the stuff. So the sales guy who

was the owner, he was also a third

generation tailor, obviously not his

first rodeo. Uh, I looked at I was like,

"Hey, uh," he's like, he could see that

I was a little, uh, distraught from the

price. He's like, "Hey, do you care much

about the uh the the the brand of the

suit?" And I was like, "Oh, no. I don't

care. I just wanted to look cool." And

he was like, "Oh, don't worry." So, he

had already prepared, and this is key,

other shoots next to me. And so, he took

this one off and he says, "Hey, try this

on for size." And just like immediately.

So, at this one, he's like, "How does

this one look?" And I'm like, "Great."

Like I didn't even want I was like I

didn't even want to like I think about

potentially having this suit. So I then

pull it over and it says two grand and

I'm like all right like it's more than I

wanted but like I like at least this is

not a car. Like I can get out of here

you know without embarrassing myself.

And so uh he's like do you like it? I

said sure. I ended up buying like $500

in like shirts and socks that went with

the suit. Um and spent I think 2500

bucks or three grand something like that

uh on the way out the door. As I went

through the process later, I thought to

myself, I came in with a $500 budget and

I ended up spending five or six times my

budget. And I was like, how did that

happen? And I realized that the first

thing I saw was $16,000.

And it just made everything seem like

nothing.

And so, uh, Roy Sutherland actually

tells a story about this with

Rolls-Royce. So Rolls-Royce stopped

showing their cars at car shows because

if you have all these different cars and

then you see a $400,000 car, it seems

egregious. And so what they started

doing was showing their Rolls-Royces at

uh plane and yacht shows. So if you just

decided not to buy a $50 million jet, a

$400,000 car feels like candy on the way

out the door. And so everything is

relative in terms of what the price is

being positioned against. And so I was

like, man, that was really powerful. And

it changed how I saw sales.

And so that is what happens. I spent

five times more than my original budget

and ended up spending $300 on

accessories and shirts, which I never

normally would have spent, but it felt

like nothing compared to the the new

$2,200 shoot or whatever that I bought.

So that is how I learned the anchor

upsell. Now, here's how it works. So

Ankor upsells involve offering premium

items first. Key first. If the customer

is shocked by the price, you offer a

cheaper alternative by changing

secondary features. And this is what's

key about this. So presenting a premium

version first at 5 to 10 times the price

makes the other offer, our main offer,

the one that we sell to most people,

look like a better deal. And so this

strategy leads to more people buying the

main offer. And so it works best when

the lower priced offer has the same core

functions as the premium one. It has the

same primary features. So, the second

$2,200 suit still looked good. It still

felt good. It still had a good, you

know, trim or whatever. It looked

expensive, but it just wasn't Armani or

whatever else, whatever other brand he

had. And so, for me, the secondary

feature of the brand mattered very

little because I was like, "No one's

going to ask me for the brand of suit

I'm wearing. They just want to I need to

look cool, right?" And so, the thing is

is that every offer, every product has

primary features and secondary features.

You want these secondary features to be

different between your really expensive

one and your minor one. But if it's just

a little bit different and it's 1/8 the

price, people are like, "Oh, this is a

steal now because of what we showed them

first." In the suit example, $2,200 suit

like a better deal compared to the

$16,000 one. Two additional benefits of

anchor upsells that happen as a result.

Number one is that customers tend to

spend more than they initially planned.

I spent five times what I was willing to

spend. Two, some customers will still

opt for the expensive option. He

probably has done that with a lot of

guys. And maybe one out of five guys

buys a $16,000 suit. And guess what

happens when you take a $16,000 suit and

divide it by five? That adds $3,000 to

every average purchase. So my $2,000

suit actually becomes a $5,000 suit in

terms of the economics of the business.

So even if one out of five or one out of

10 people buy something 10 times as

expensive, if you have one out of 10 buy

something 10 times as expensive, you

double your business.

Not to mention the increased uptake

rates and average spend of all the other

customers. So, like I said, the menu

upset we talked about earlier, very

elegant, very savage, really good for

high volume transaction businesses. This

one a ramrod for businesses that

spend that have fewer customers that

spend lots of money. Basically, this can

still make you more money than the menu

upsell can, even though it's just very

simple to understand. So, here are the

steps to using an anchor upsell. You

present the anchor, the really expensive

thing. Step one. Step two, get the gasp.

All right? expect customers to freak out

about the cost. That's expected. If you

didn't do it, you didn't anchor high

enough. That's why I say 10 times the

price. So, if you're like, I don't know,

is this an anchor? Like, I I added 20%.

That's not an anchor. It has to be an

order of magnitude larger. It has to be

so much larger that it gets you to

recategorize your original purchase. It

like, think about it. Buying planes and

buying yachts compared to buying a car,

totally different magnitude. It can't

be, you know, it can't be within 100%.

It's got to be 5x, 10x more. Once you

get the gasp, you come to the rescue.

You ask if they care about what makes it

premium, those secondary features. Do

you care about the the material or the

internal lining stuff that somebody that

most people won't care about? Then you

present your main offer and you expect

the customer to feel relieved and see

the better deal. Then you just ask how

they want to pay, which card you prefer.

So, here's some pro tips. Number one is

the only thing worse than making a

$1,000 offer to a person with a $100

budget is making a $100 offer to someone

with a $1,000 budget. In the first

situation, you lose $100. In the second

situation, you lose 900. I've lost tons

of customers and mountains of cash

because customers wanted more than I had

to offer. Boo. So now I always have

premium upselles rank ready. Anchors.

Only a handful of customers buy them,

but that handful of customers bring in

big profits. So always have premium

offers. Even if most people don't buy

them, you're not failing if one out of

10 people buy it 10 times more expensive

offer. You still double your business.

Remember, you're not losing customers by

offering premium stuff first. But you

will lose money if you don't. All right,

let's do some examples. First one, we'll

do a local lawn care service. So, the

premium anchor is get my cell phone

number, fancy mulch, natural pest

control, bi-weekly yard maintenance for

$1,000 a week. It's crazy. Big shock. No

worries. Get my my foreman's number, my

my team, my crew chief's number, generic

mulch, normal pest control, bi-weekly

yard maintenance for $200 a week. Yeah.

Yeah. Yeah. I'll do that one. I'll do

that one. Because it's almost the same

thing at the end of the day. It's like,

and they'll probably be like, "Is this

is my, you know, yard going to look any

different?" It's like, "Well, not

really. It just really depends on how

much you care about the the the quality

of the soil." Now, for the guy who cares

about the quality of the soil, he's

going to buy this thing. But for

everybody else, which 80% of people

don't give a rat's poo about the quality

of this other stuff, they're like, "No,

I'll take the 200." But they don't know

that you couldn't price this at 200

because last week when you offered 200

straight up, people were nickel and

dying you down to 150 or 99 a week. So,

physical product, a painting, the anchor

would be the super productive packaging,

a 20-year insurance, and gift wrap for

$1,000. The main offer is normal

packaging and one-year insurance, and a

sticker for 200 bucks. You're like, "Uh,

I'll take the normal one." The thing is

is that you want the customer to feel

reasonable by making the purchase, like

they're getting a better deal, like

they're pulling one over on you. They're

like, "This guy thinks I want thousand."

Like, he doesn't even know that this is

basically the same thing. And it's like

one fit the price, but you designed the

game. They're just playing it. Third is

a uh digital product. Let's say it's a

newsletter. So, the premium anchor would

be like, "Hey, all previous issues and

new issues and 24-hour early access to

my newsletters for $1.99 a month or new

issues only and you'll just get it on

time for $19 a month." You're like,

"Shit, yeah, I'll do the I'll do the I

mean, I you know, it'd be cool to get

the 24 hours early, but like I'll just

take the new ones. Like, that's fine."

And it's oneten the price. And so, now

this feels like an absolute steal, but

you might have been competing against

people at $7 a month before that. All

right, here's some important points

about this. This is crucial. You will

fail at doing an anchor upsell if you do

not treat it seriously. So, if you treat

the anchor like a fake, so will the

customer. If the guy had put it on my

shoulders and been like, "It's probably

out of your range." Or said, "Well, that

would be a little insulting." But if

he's like, "Hey, if this isn't, you

know, in your range, like, no big deal."

Then I would have been anchored because

I wouldn't have t I wouldn't have

considered the purchase. You have to

have them fully consider the purchase.

Really try and think, "Oh god, how would

I come up with this?" And what h here's

what happens is that your brain or their

brain starts justifying why it might be

worth that amount of money. And then

when you offer something onetenth the

price, they've already done all the

heavy lifting of of anchoring of

comparing why it might be worth that.

And then compared to this price, it's

totally worth it. And that's why we

change as little as we can from the

thing that they thought about to the

thing that they ultimately buy. The next

point, make a premium offer that you

actually want people to buy. If you have

this premium offer that has all these

bells and whistles, be ready to service

it because let me tell you the real

secret to what ends up happening when

people do this. They 10x their price and

they make this really bang whisbang

thing and then more than one out of 10

people buy it. And so this is just also

a great way to give yourself permission

to anchor something 10 times as

expensive. A proper anchor gets the

gasp. Expect them design for them. You

want the gas. The gasp means they

considered it. If they do not gas, it

either means you didn't go high enough

or you didn't sell hard enough. As in

you didn't truthfully commit to actually

selling that thing. Like you have to in

earnest present it or this will not

work. It'll just be a waste of your time

and theirs. And this is especially for

business owners. If you teach your team

this process, many of them will just

skirt through the anchor because they

start selling from their wallet. They're

going to be like, I would never pay for

this. It's like, of course you wouldn't.

You already know how to fix cars. This

guy doesn't.

And so we often can never see the value

of the stuff we sell because for us it's

easy. Duh. That's why we have a business

around it. You want to sell stuff that's

easy for you and hard for other people.

That's how you make money. Once you get

the gasp, you come to the rescue. And if

they don't bulk, like if they if they

don't gasp, close the whale. If they're

like, you know, this is a nice suit,

then you're like, great. Do you have a

card on file? Do you want to you put

pair this with a handkerchief? You just

move right on in the sale. and you're

like, "Oh god, I got a whale on the

line. I'm just gonna keep going to get

more people to buy your main offer. Make

it a better deal." So, this is the

primary versus secondary features. You

want it to be as little different from

the main one, from the anchor as uh as

possible so that they justified the

price already at this 10 times higher

price and when they hear this one,

they're like, "Oh, this is a steal."

Because if you make your good one too

different from the core offer that

you're ultimately trying to sell 80% of

people, then they actually have to

reconsider the offer again. they have to

recalibrate price to value. You want

them to basically be able to take the

same price to value measurement they did

here and then here an 80% discount or a

90% discount because the things that you

changed were not the things they cared

about. But if you all of a sudden have

all these things they do care about,

then you changed primary features, not

secondary features. So if you present a

more expensive offer first before a less

expensive offer, more people will buy

the less expensive offer than they would

have on its own. When you present the

anchor, get the gas, come to the rescue,

present the core offer, ask for payment.

For the most effective anchor, make your

premium offer five to 10 times more

expensive. Anchored customers spend a

bit more than they plan to. And don't

treat an anchor like a fake or the

customer will too and you will lose

trust and waste their time. Important.

Some customers will buy premium offer.

That is where you make way more money on

this because one, more people buy the

main thing and some people will buy the

very expensive thing. The expensive

premium offer adds outsized profits with

fewer sales. So just because you don't

sell the most of it doesn't mean you

don't make the most profit from it. The

main offer and premium offer should have

the same primary features. The premium

offer has different secondary aka

premium features. After anchoring,

offering the primary features for 1/3 or

1/5 or onetenth the price makes the main

offer a great deal. It gives them

basically the same thing for way less.

That is the anchor upsell.

All right, so we just crushed the

classic upsell, the menu upsell, the

anchor upsell. Now, let's talk about the

rollover upsell. Rollover upsell of

these four upsells is probably my most

used upsell. not necessarily my

favorite, but my most commonly used. So,

let's break down how this came to be.

So, I learned this from when I was doing

the win your money back as the

attraction offer. So, everyone kept

crediting their money towards the

membership, but I would put it all up

front, right? The membership was for me

uh $150 a month. So, 600 bucks was four

months of free service. So, you know,

they did six weeks and then they would

essentially get another four months for

free. and it would almost take me a half

year to get my like first payment from

people coming in the door which was

which sucked right so the thing is is

for them they didn't feel the payments

so they stopped coming and so I needed a

way to upsell people into something paid

and so I drove to a friend of mine's

actually here in Vegas now uh to learn

more about how he ran his job and and

the thing is I studied everything he was

doing because he was just doing way

better than I was and uh he said in this

off-handed comment that he was getting

70% plus people stay on afterwards and

pay and I was like, "How are you doing

that?" He's like, "Oh yeah." He's like,

"Just take their winnings and credit

towards a year." And he said it just

like that. And I was like, "That's it.

All you do is you take whatever they

just paid for and you roll it." And so

that's the upsell. It's whatever you

paid for, I'll just credit it towards

the next thing. So, let's get in the

description. Here's how it works. So,

rollover upsells credit some or all of a

customer's previous purchase towards

your next offer. And this in my

experience gets way more people to take

it. So once I know how much credit to

give, I figure out three things. One,

who to upsell. Two, what to upsell. And

three, how to roll over the credit. So

for the who, I use rollover upsells in

four situations. First is to re-engage

customers who left a while ago. I call

this a win back campaign. You reach out

to old customers and say, "Hey, Sandra,

you haven't been up. You haven't been

back in six months. Uh, but I saw that I

owed you some money." And so the subject

would be, "I owe you money." And people

tend to respond to that. And so you say,

"Hey, I owe you $500 bucks." And she's

like, "What do you mean you, you know,

you owe me $500?" It's like, "Well, I

promised you this thing." And you know,

you haven't come back in a while. So I

want to take $500. Now, that could be a

100% of what they paid. It could be a

third of what they paid so far,

whatever. And say, "And I want to I want

to get you in here, and I'll credit

towards uh this other service thing,

right?" And so a lot of people will take

that offer to credit whatever they've

paid up to this point for more help.

Great. And that's what how you can

re-engage old p old people who haven't

been back in a while. The second is to

rescue upset customers as a better

alternative to a refund. So someone

says, "Hey, I hate you." And you say,

"Hey, no big deal. This $500 that you

paid. I'll just credit it towards the

thing I should have sold you originally.

So you got all the stuff that you just

got for free. It's on me. Let's just

give you the thing you really need." So

I'd rather do a redo than a refund. And

that's how we use the roll over there.

The third is to rescue other people's

upset customers. This is particularly

savage. So, what you do is you go down

the one star reviews of all your

competitors and you message those people

and you say, "Hey, how much money did

you spend at so- and so competitor?" And

they're like, "$1,200. that guy."

And you're like, "You know what? I'll

give you the $1,200 of credit towards my

stuff because I just want you to get

this problem solved." You turn their

biggest hater into your biggest

ambassador. Savage. Number four, you

upsell your regular customers who walk

in the door. So, there's the four who's.

The next one is the what. So remember,

you can upsell more of what they just

got, something better or something new

and or different. So to make money, roll

their credit over to something more

expensive. And so the more expensive

thing, again, in my opinion, should be

five times more expensive. So if I'm

going to roll a $500 thing, I want to

roll it towards a $2, $2,500 plus type

offer. For the how, you can apply all or

part of the discount upfront or you can

spread it over time. And so this is

dependent on you. So in the examples I

gave before, I took it and I spread it

over time. You could, if you had a

smaller amount, do it upfront. It's up

to you. You can also make up a fee that

you can then wave and use the credit

for. There's lots of things you can do

here. All right? But fundamentally, you

can just figure out. Now, the all or

part of it is like, let's say somebody

was with you for three years and they

spent five grand with you. You might not

credit five grand towards something

else. If your services, you know, aren't

that much. Maybe it's $2,000 a year.

$5,000, three years of service. Well,

you'd certainly want to get that

customer back. But if you give them

another three years, it doesn't make

sense. So, you could say, "Hey, I'm

going to give you the last, you know,

the last three things you bought for me.

let me credit those instead. Right? You

wouldn't say instead, you say, I'll

credit those for you. Right? All of

those things you can say, listen, I'm

going to assume that we did something to

mess up because you didn't come back.

And so, I'm going to assume that the

last six months of service that we did

was not up to snuff. So, let me make it

up to you. So, examples. So,

chiropractor re-engage old patients with

the win back campaign. So, you say,

who's the who? Six months since their

last purchase. What new plan, how

upfront. So, that's our who, our what,

and our how. So, reach out to your old

patients. You look at their purchase

history. you offer to apply some or all

of their past purchase towards something

more expensive than what they bought.

So, I would say, "Hey, Mrs. Banks, I

wanted to give your money back. Do you

have a minute?" "Great. Yeah, I wanted

to see how your back pain's going." "Oh,

I'm so sorry to hear that." "Uh, well,

I've got some good news." As a way of

saying, "Thank you. I want to give you

$500 your money back as credit towards

staying painfree for good. Is that of

any interest?" Great. Let's get you in.

Let's say a dentist. Hey, save your own

upset customer with a rollover upsell.

So, who upset customer? What? Teeth

whitening. How? Frontload $200 credit.

So, we say, "Hey, the person pays 200

bucks for teeth cleaning, but doesn't

think their teeth got whiter. We explain

they need more, you know, to get more

and upsell into a teeth whitening

package, which includes multiple

sessions, an add home kit, and multiple

deep cleanings." Then you offer to

credit the $200 they just paid for the

cleaning towards the whitening package.

This just really works with people who

are like, "Well, this isn't what I

thought it was going to be." And you're

like, "Oh, that's on me. I thought you

wanted this miscommunication. I'll make

it up to you. Let me take everything you

paid, so you didn't lose anything.

Everything you got was for free now. And

let's put it towards the thing you

ultimately wanted." Because the thing is

is they still want the thing they they

spent money on. And so if what they

really wanted was higher expectations,

then sell them the higher package.

Rescue, cough, steal, other people's

upset customers. So who competitors

customers? What? Service agreement. How?

Rollover cost to break old agreement. So

let's say you find a competitor's upset

customers and credit their old purchase

with them towards a new purchase with

you. Then you roll over the amount they

owe them as a credit towards a longer

agreement with you. So let's say they're

like, "Ah, you know, I would, but I've

got three months left in this service

agreement." You say, "No worries.

whatever you have the three months, I'll

credit it towards mine and I'll just

make mine a two-year agreement. So,

you'd say like, "Hey, John, saw your

negative review on uh their product and

it really upset me to make it up to you.

I'll credit whatever payments you have

left with them to switch to ours. This

way, you don't lose a thing and you

start getting the benefits now." Fair

enough. Because that way you don't have

to wait for that thing to expire and pay

and then wait to get the benefits. You

can start getting benefits now and you

don't lose anything and I get the

customer membership. So, this is where

you spread the first purchase over time.

So who current customers what 12-mon

membership how? Spread over the first

purchase. So somebody comes in, buys a

block of service uh or or of membership

time. As soon as they do, you can then

offer to apply the entire amount towards

more time like 12 months. I can do

rollover upselles anytime. I just prefer

to do to do them right then. Or so this

is the important points. Uh use rollover

uh offers to attract new customers. For

example, you roll over some or all of

the customers paid somebody else towards

your thing. And you can find leads by

scraping contact information from

negative product reviews wherever

available. You can do rollover upselles

before refunding. This has solved me

tons of c saved me tons of customers in

cash. If you did a bad job, hey, it

happens. Roll over for a doover. And if

they want something different, you can

roll over the purchase toward that thing

instead. Previous customer uh are still

customers, upsell them. These are

winbacks. So reach out to old customers

six plus months uh from their last

purchase. Look at how much they paid.

Decide how much you want to give them.

Offer it. Example, I made personalized

videos. This is me personally. I made

personalized videos for 200 past

customers. This is before AI and all

that stuff. It took me like two days.

Um, offering them $4,000 of credit to

return. Add urgency to rollover upsells.

So, make them one time only. So, this is

a key point. So, this is optional. It's

up to you, but this is how I prefer to

do it. Make the moment you present the

offer the only time to take the offer.

So, they don't get to sleep on it. So,

you want to surprise and delight them

with this credit or this discount. So,

if they want the credit, they got to

take it now. If not, no big deal. They

can always pay full price later. How to

price a rollover upsell. So, to make

money on a discounted offer, you have to

have profit left over in order to

discount it, right? So, I try to make

the upsell at least four times more than

the rollover credit. So, that gives me a

25% discount at most if it's four times

more expensive. Remember, the rules of

discounting apply. Bigger discounts make

you less profit, but per sale, but they

get you more sales. Now, you don't need

to credit the entire amount. I just like

to highlight this again because people

do this and then they ruin their

businesses. So, I'm telling you, don't

do that. like you can just take as much

or as little as you want. The goal is to

simply get as much of a discount that

you get responses. So if you find out

that $200 is enough to move the needle

and the average person spent $2,000 a

year, then you can say, "Hey, your last

purchase with me of the 2,000 you spent

last year was this thing." And that's

what you choose to credit. You don't

have to credit everything. If you have

smaller if if the person spent a very

small time with you and you have really

big packages, credit the whole thing. If

they spend a really long time with you

and you have small tickets, credit the

last one. So I roll over whatever I

think would incentivize to buy the next

thing. And you can just test to find the

sweet spot. From the beginning, it's

$500. You can test 300, whatever. This

is my famous gift card play. The way

that this works, and this is a savage

play, and it basically is a rollover,

just like packaged differently, is that

you say, "Hey, this works great for like

holiday seasons, things like that. You

say, "Hey, this also crushes for Black

Friday. I'm giving $200 gift cards away

for 90% off. Limit two per person, and

you can only use them on someone else

because it's the holiday season." So you

can do this for Christmas and you can do

this for Black Fridays. You can use it

twice if you want. Now the key here, you

can also do for uh birthdays. Uh sorry,

not birthdays. Sorry. They give it to

other people as birthday gifts. Anyways,

when customers buy the gift card, ask

them who they want to make it out to and

if they'll make an introduction. Then

when that person comes in, the person

they introduce comes in, you roll their

gift card over into the main offer. And

so some people see this and are like,

"You want me to give 90% off my main

stuff?" It's like, "No, bro. I want you

to sell a $2,000 thing and give $200

gift cards away for 20 bucks." So,

what's really happening here? You're

gonna get paid $20 to get a lead that's

a hot referral that you're then gonna

take the $200 and roll it into a $2,000

product, which you may have marked up by

$200. Or you add something to it that's

high margin that you can justify adding

the $200 for that then you can take the

deduction off of. All right. So, you

make the value of the gift card 20% of

the price of whatever you want to sell

next. So, if it's a $200 gift card, you

make that oneif of the price. So, $200.

So, if I had a $2,000 off, that'd be

one10enth. But minimum should be 5x. It

would be $1,000 offer. Obviously, you

can make it more expensive than that.

You just want it to be enough that it

drives a purchase. All right. In our

example, we sell $200 gift card for 20

bucks, then apply that $200 offer with

at least a $1,000 price tag. People pay

to refer their friends, plus you get

cash from unused gift cards. Wins all

around. That is the gift card play.

Final points. Rollover upselles credit

some all of a customer's previous

purchases towards your next offer. Do

rollover upstars figure out who to

upsell, what to upsell, and how to

credit the rollover. Who to upsell? Old

customers, upset customers, other

people's upset customers, current

customers, what to upsell, more of

something, better of something, new

something new. Just make sure that you

make a profit after applying your

discount. How to roll over the credit.

You can do full or partial purchase. Uh

give it upfront or you can spread it

out. We went through examples of all

those. You can price your next offer for

at least four times higher than the

credit. So, this makes it a 25%

discount. Everything above that is

gravy. I wouldn't do less than that. And

to get more takers, add urgency. Make

your rollover credit a one-time only

offer. And boom, that is the rollover

up.

So, we just covered all four upsells.

The classic upsell, menu upsell, anchor

upsell, rollover upsell. And if you're

like, man, that was amazing. Yes, I love

those. And the problem is, what happens

when someone says no? Enter downell

offers. So, downell offers are the third

prong of our four-prong money model.

It's what you do when someone says no.

So, here's the description. In the last

section, we use upsell offers to get

people to buy more stuff. If we did a

good job, we've turned a profit, too.

Downsells begin after a customer says

no. We find a solution to meet the

customer's budget. So, we downsell in

two ways. We change how they pay or what

they get. So, how they pay, how much

they pay versus how much they pay over

time. So, now versus later. And then

what they get, we change the quality,

the quantity, or something different.

So, here's what not to do. So, these are

the rules of not downselling. So, this

is a real story from a friend. So, I was

buying a car and the salesman tried to

upsell car insurance. The cost of the

insurance when he first started was

$5,000. I said no. But then he lowered

the price. I said no again. He kept

lowering the price until the same

insurance he first offered was at for

$5,000 was now $400. I still said no. At

first, I said no because it was way too

much money. But by the end, I said no

because I didn't trust the guy. The

entire experience felt dirty. Then I

wondered, was he ripping me off in the

car, too? Now, I didn't want to buy the

car from him either. How to not downell.

People lower the price to close a sale.

But even if you close this one sale, the

customer will question every other price

you offer them from that point going

forward and whoever they tell. That's

the bad part. Not just them, everyone

else, too. So, you trade trust for a

buck. Not worth it. Here's the note. You

can offer something different for less.

You just can't offer the same thing for

less. if he had offered different

insurance for less rather than the same

insurance for less, he probably would

have been fined and kept your trust and

closed the sale. So, the key point was

that he offered the same thing that was

once 5K for $400. That's the problem

because now it basically means that your

price has no meaning and you're making

it all up, which of course we do make it

all up, but we never admit that. So,

let's begin. Rule of downing. Remember

that they said no to this offer, not all

offers. see it for what it is, an

opportunity to find out what they really

want and then profit from it. Downells

are trades. When downselling, you work

with the customer to find a combination

of giving and getting until you get a

match. So, if you're going to give

something, you should get something

back. Personalize, don't pressure. So,

figure out what they like and what they

don't like. Then, offer more of what

they like and less of what they don't

with a price to match it. If someone

refuses my large soda upsell, I can

offer them alternatives. I could ask if

they want a small or juice or coffee. Am

I being offensive by asking? No, it's

offensive not to offer to help. Offering

the same thing in new ways. You limit

downells to what you've got. So, think

of downell as more like a hundred ways

to offer the stuff you already have, not

a hundred different offers. Don't drop

your price just to get someone to buy.

All right, I'm going to reinforce this

one because this is the one that

everyone just keeps messing up. First

off, dropping your price is not

downselling. It's discounting. So, if

someone wants what you have and just

doesn't want to pay the price, well,

that's tough cookies. On the other hand,

you can offer them to pay less now and

more money over time, which is a payment

plan. So, let's go through the lineup.

We're going to go through payment plan

downsells, how they pay, trial with

penalty, which is also how they pay, but

just a very in-depth tactical thing that

I think people do trials wrong, and I'll

explain how I like to do them. Uh,

feature downells, which is changing what

they get for the price. These downells

boost 30-day profits even further. They

do it by making even more sales when

customers would have said no. And you

can use a downell offer at any point in

a money model. You can use it up front.

You can use it after someone takes an

upsell or says no to an upsell. You can

use it on the back end. Any of those

things. And that begins our downell

offers. Let's start with payment plan

downells.

So, we just covered downell offers. Now,

let's rock and roll into payment plan

downells. The main five as always, and

let us begin. So, here's how I learned

it.

One month into the business, I got one

month's rent left and I'd only made a

few sales that first week. So, halfway

through the month, a prospect comes in

and I really needed the cash. And so,

she said no to buying. And so, normally,

I just would have given up, but I really

needed the cash. And so, I was like,

"All right, well, can you put half

down?" And she said, "No." And I was

like, "Okay, can you put a third down?

We'll do three payments." And she was

like, "No." I was like, "Well, what can

you do?" And she's like, "Well, I can't

do anything today." She's like, "But I

get paid on the first. I can put the

whole thing down then." And rent was

doing the fifth. And so I was like,

"Okay." So I put $0 down today and then

I put her whole payment on the first and

it went through and I was able to pay

rent and all was well in the world.

Hooray. So that was my first real

experience with learning how payment

plan downes worked. I got a little more

sophisticated over time, which is what

I'll share with you. So here's how they

work overall. So payment plans work for

any price tag. That's one of the nice

benefits. But they are a gamble. They

make money when customers complete

payments. They lose money when people

cancel before you profit or when people

who would have paid in full take payment

plans instead and then cancel early. So

note this is not selling a cheaper

thing. This is selling the same thing

with different payment terms. And so

people reject offers when they cost too

much today, not necessarily when they

cost too much overall. This is a massive

miscommunication and misunderstanding

for salespeople and business owners.

People saying no doesn't necessarily

mean that you're mispriced. It just

means that you might have to change the

terms of payment. All right? It's

usually about what they have to pay

right now, not what they have to pay in

general. And so, people mistakenly think

that they need cheaper stuff, and this

is not the best course of action in my

opinion. Payment plans get the most

buyers to pay the highest price by

getting them to pay less now in the

moment, but pay full price or higher

over time. So, here are the seven steps

of a payment plan downell. We reward for

paying in full rather than punish for

paying over time. This is a big thing

that I I don't see taught very much and

so I'm going to explain this one in

depth because it's really important. Uh

next, we're going to offer financing

options. Half now, half later. Check to

see if they want the thing. Offer to

split in the three payments or evenly

spread the payments. Offer a free trial.

So, let's give some deep down examples.

So, step one, reward for paying in full

rather than punish for paying over time.

So, if I take on the risk of a payment

because if you're a business owner and

they don't pay you everything and you

start delivering stuff, then you take on

risk, right? So, then what I do is I

increase the price. Now, normally

businesses do this by charging interest,

but everybody hates getting charged

interest. And so instead, what I do is I

anchor my first price I present is the

fully baked payment plan. And then when

I say, "Got it. Would you like to save

some money?" They say, "Yes." And I'm

like, "You can prepay and save this much

money." So now them prepaying is a

savings rather than getting penalized.

So think about like this. Let's say it's

10K and 12K. 10K is the paid in full

price. 12k is the payment plan price

instead of instead of pitching people

because remember anchors still work.

Instead of pitching people 10 and then

they say they know they can't afford it

and then saying okay fine pay me 12

because you can't afford it feels tough.

So instead pitch 12. I know you're

afraid of doing it. Don't be. The

difference in interest is usually never

enough to change a purchasing decision.

So like if you had 10 and 20 then yeah

but most interest or whatever you

usually you know add on top might be 10

20%. And so that's not usually enough to

get into a different buying tier. So you

present here and if someone says yes and

by the way if everyone keeps saying yes

at that and then you don't even have to

mention the prepaid then it also allows

you to incrementally step up and get

kind of like a soft indication in the

marketplace whether or not you can

sustain a higher price point. So, I

actually like to use payment plans as a

great test for where I'm anchoring and I

can keep nudging up my price before I

start seeing people freak out. So, it's

kind of like a testing price. So, I

would present 12. They say, "Uh, I'm not

sure if I can do it or maybe they can do

it and great, want to save some money

now." They prepay 10 and they're stoked.

If they can't do 12, then it's like

fine. Oh, you don't have to do it all up

front, but now I don't have to increase

the price. They said they couldn't do 12

and then I say, "Cool. You want to

spread it over time and now it seems

like I'm adding no interest to the

original price." See how different that

feels? Like, oh, you can't do 12, we can

break into payments for you. But, oh,

you can't do 10, then pay me 12. It's

like tough, right? And this gets around

all of that. So, number two, third party

financing, credit card and layaway

option. So, third-party financing means

another company pays me now or pays you

now as a business owner and the customer

has a payment plan with them, the other

party. So, car dealers do this all the

time. The dealer gets money from the

financing company today and the customer

pays the financing company tomorrow.

Most times, by the way, adding

third-party financing in increases

revenue by 35%. On average, note it does

take work to get third-party financing

set up, but it is typically worth the

effort. Credit cards. Now, you're like,

how is this how is this third party

financing? I learned this from a master

salesman, so I will just teach it to you

as I was taught to me.

This insane clothes that this works, and

it does work, and it still blows my mind

that it works. Just ask, would you

rather that I decide your payment terms

or that you decide? Everyone then says,

"Well, I would prefer to decide." And

when they do, you just say, "Awesome.

Just use your credit card." That way you

can uh pick whatever payment plan you

want that works for you. If they say,

"Well, shoot. What's the alternative to

that?" Then you say, "I have an in-house

plan," which is me picking the dates of

when you got to pay. And that's usually

going to be a much shorter time frame

than what a credit card would allow you

to pay it on. And so, as crazy as this

is, it's wild to me that this reframe

actually works, but it does. So,

especially if you sell to consumers,

like that reframe works. No idea why. I

only state what I know that it works.

All right, the next one is layaway. This

is actually a personal favorite of mine.

Layaway means paying off the product

before getting it. This is actually how

they used to do in the olden days when

there was no credit and banks were all

sketchy. People would do layaway. They'd

go to the store, they say, "Hey, I want

to buy that thing." And the guy would

say, "Great. Drop off money every Monday

for the next four Mondays and then I'll

give it to you." And it was a very

simple way. Now, the thing is is that

the customer takes on the risk, not the

business. But in my opinion, I think

there's a lot of really weird little

psychological things with it because if

you make payments, it's like it's like

building up anticipation for a vacation.

It's like the whole time like, man, I

can't wait to get this thing. I can't

wait to get this thing. On the flip

side, when you get the whole thing and

then you make payments, you already got

the value and now every time you pay,

you like hate them a little bit more,

right? I mean, ideally, that's not the

case, but I'm just I'm just explaining

my experience as a consumer. Some

businesses can't do this. They can't

they can't do a layaway. But if you do

have the opportunity or the option where

it's where you can delay starting for a

little bit, whether it's a service or

it's a product, having them start paying

is a great way to do this. And the nice

thing with layway is it's as flexible as

you want. And I'll tell you the story of

how I learned this. So I had uh Allen,

which was our software company. I mean

we still own 25% of it but um when we

started the business I learned that uh

inerson onboardings led to higher stick

rates and happier customers and you want

to get more customer feedback etc. And

so I would do a single company full day

onboarding or halfday onboarding and I

was on the phone selling that

onboarding. Now, the onboardings, for

context, these this was an enterprise

level sale, so it was like $20,000 to

just be able to white label the stuff um

and then use the the whole product

because it added a whole another revenue

stream to agencies. And so I was on the

phone, this must have been the first

week or two, and I was on with these uh

young agency owners and they said, "Um,

okay, 20, do you guys do payment plans?"

And I was like, "Yeah, sure." U I said,

"You can break it up however you want."

And they were like, "Awesome. So, we'll

just do 800 bucks every other week. So,

that's what they said. And they're like,

"So, with that being said, we good to

come out, you know, uh, you know, next

week." And I was like, "Oh, no, no, you

can't come out." I was like, "You can

split it as many times as you want, but

you got to pay it off, and the moment

you pay it off, you can fly out." And

they they just said, "Oh,

all right. We'll put half down now and

half in a month, and then we'll come out

then." And so they wanted to delay my

payment for like six months or more than

that, whatever the math is on that. And

then as soon as I said, "Oh, no, you

don't get the thing until you pay." They

were able to do it in in a month. And so

the nice thing with layway is that

actually aligns your incentives with the

customers. They want to pay it off as

fast as possible so they can get the

thing. When it's the other way, when

you're giving the value, they're

incentivized to make it last as long as

possible. This is why I like layaway for

the variety of reasons. You can close

anyone. you can make the payment terms

as flex as you want. You take don't take

on risk. They have this kind of like

working for it, earning it uh type feel.

And for all those reasons, I really like

layaway. Now, if they say no to all of

those offers, I move to step three. So,

guys, these are in sequence. So, first

we do the prepayment thing. They say no,

then we offer financing. They say no, we

say, "Great. Can you do half now and

half later?" So, then I say, "When's the

next time you get paid?" If I'm doing a

consumer sale, if I'm doing a B2B sale,

I'd be like, "When's your next inflow of

cash?" Or, "Do you have some sort of,

you know, uh, revenue thing? Do you have

any big contracts hitting?" Whatever.

After that, I say, "Want to just put

half down today?" And then the rest down

when you get paid. If they can't do

that, then I say, "Okay, well, what's

the most you can put down a day?" And I

like that question because it just cuts

the core. What's the most you can put

down a day? When they offer an amount,

you say, "Great. We'll put that down a

day. We'll put the rest when you get

paid." Fair enough. So, instead of doing

half down, I might have put a quarter

down, 75% when they get paid. But all

I'm trying to do is compress forward

cash. remember money models. What we're

trying to do with customer finance

acquisition is get as much as we can in

the first 30 days. And this payment plan

downside process is structured to do

that. So, I like scheduling payments off

of paychecks since that's when most

people get paid every two weeks. So,

this boosts 30-day profits more than

monthly payments. So, it's like half

now, half two weeks, and then half and

then, you know, a third in the next two

weeks. So, all of I get three payments

in 30 days, which is great. And if they

can't do those, I pause to make sure

they actually want it. So sometimes

people just keep saying no. And I'm

like, "Hey, pulse check, temperature

check. We still good? You still want to

do this?" And so this is how I do it. No

payment plan is going to satisfy a

customer who doesn't want the thing. So

make sure the person actually wants the

thing before putting more effort into

selling it. So I might say something

like, "Got it. So money's tight right

now. Real quick, just want to make sure.

Let's scale from 1 to 10. How bad do you

want to do this?" Now, if they say eight

or above, then I keep offering payment

plans. Say, "Awesome. Don't worry. We're

going to figure out something that's

going to work for you." If they say

seven or below, I say, "Why not a 10?"

and then say something like, "You're

right. I think we may have something

that could fit be a better fit for you."

And then I pivot the sale. And so then

you sell something different, which this

is actually an out point or an exit ramp

that goes into feature downells, which

is two two videos from now. So step

five, we offer to split into three

payments. So remember, at this point,

they've said 8 to 10, right on the

scale. I downell from half down to a

third down. So I offer a three payment

option. So 1/3 now, 1/3 on the next two

paychecks, or 1/3 now, and then 1/3 the

next two months. If they still can't do

it, then I offer to evenly spread

payments. So, if they still can't manage

it, evenly spread their payments or the

rest of their service. So, even if

someone signs up for six months of

service, it doesn't mean you need to

have them pay you over six months. You

can have them pay you in three months

for six months of service. You want to

still frontload as much as you can.

You're the one who had to pay the cost

of one onboarding the customer, but also

of acquiring the customer. So, for

instance, for gym launch, uh it was 16

weeks long. So, for us in that business,

I charged them each week 16 times in

total. So that was me spreading it all

the way out. If that still creates a

problem, I moved to step seven. Now to

be clear, I dealt with very very broke

customers. Most owners don't make any

money. And so I had to I basically this

was so so commonly the payment plan that

ended up basically just having

prepayment financing evenly spread

because I just kept getting so many nos

all the way out. You simplify it. And at

the end of this, I'll walk you through

this, but fundamentally this is how you

map kind of the network of what your

down your downell process will be. And

then over time you tighten it until it's

like these are the highest likelihood

stop points that my avatar tends to say

yes to. So step seven is you offer a

free trial. Now I offer free trials in a

very special way. So I dedicated the

whole next video just to doing this. But

normally the sale ends here. I mean you

can't really get much lower than a free

trial, right? So here are some important

points about payment plans. What I

walked you through was a sevenstep

downell process. It's how I like to map

these. Now, there's a different

methodology of downselling that's

simpler to understand and less to

explain. It's called seessaw

downselling. I like it a lot as well.

It's simpler to explain. You can pick

whichever one you want. And I don't like

giving people options because people

like being told what to do. But I think

if you're watching this, then I believe

in you and I think that you can make the

best decision. So, instead of just

asking for the full amount, you say,

"Would you rather have giant monthly

payments or tiny ones?" They'll say

tiny. Then you say, "Well, it normally

costs XXX and if you prepay today, then

you get a huge discount and zero monthly

payments. That work?" This frames the

payment plan as a negative and

highlights the benefits of prepay. If

they say they can't afford it, say the

more they put down now, the lower their

monthly payments. And so it basically

frames all of the payments as we want to

make those payments as low as possible,

so put more put more down today. So if

you can't afford it up front, totally

get it. We'll just adjust the down

payment. until you get a monthly rate

you like. And the thing is is that most

people want low monthly payments. And so

in order to get a monthly rate they

like, they have to put more upfront. So

the seesaw downell, I call it this

because you're just saying, okay, well,

the more you put down or the less you

put down, the more you have to pay over

time. The less you put the more the more

you put down, the less you have to pay

over time. And so this incentivizes

bigger down payments to get monthly

payments lower. If they still say no,

you ask if they still want the product,

just like before. If they do, you pull

your chair to their side of the table

and walk them through the options.

That's how this works. That's the seesaw

downell. It's an alternative path that

felt I felt obligated to at least share

with you guys. The thing is is I like I

think with larger sales teams just

having very clear step downs. Sometimes

seesaw downselling can get really weird

payment plans. And so this is for bigger

companies. If you have like a finance

department, they might hate seesaw

downelling because but if you're owner

operated, then you can you can kind of

work out whatever payment plans work.

and it is a more flexible way to make

payment plans option payment plans

happen. The sevenstep one is more like

it's ironclad. This is our first stop.

This is our second stop. This is our

third stop. And then that way your your

finance team can be like these are the

plans. They're in the CRM. We track them

accordingly. Whatever. And so it depends

on the size of the business. Seesaws

smaller business more flexible stuff.

The step downs has more scale to it in

my opinion. All right. So payment plans

have built-in upsells. So, this is one

of those really key sexy things that a

lot of people miss out on and we've made

a lot of money from it. So, make

periodic offers for the original paid

full discount during their payment plan.

So, we give a prepayment discount. What

you can do is also extend the timeline

that they can prepay and still get the

discount. So, if you're in any kind of

B2B business, especially anything

marketing or sales driven, if you're

helping them make more money in their

business, which the vast majority of B2B

businesses do, then you can say, "Hey,

no worries. You might not trust us fully

today. Let's get a third down. We'll get

going." and then I'll still give you

this prepayment discount for the next 30

days. I'll honor it. So then at the two

weeks and 3 weeks point, you can say,

"Hey, do you want to go ahead and do

that? Hey, we're about a week before the

the term expires. Do you want to go

ahead and take care of the rest of the

balance and still get the discount?" If

you've done a decent job, a lot of

people are like, "Yeah, I'll take the

savings." Because now they know you. And

so we get a ton of people who take that

prepayment if you just extend the window

and you say it on the sale. You say it

on the sale after they don't take

obviously the first prepayment. And you

do that after you've already closed the

card and you're kind of telling them

what the next steps are. Okay. Fewer

declined payments. So, align payment

schedule with paycheck dates. That

should seem straightforward. When they

get paid is when you should bill. That

way, you have fewer declines, fewer

insufficient funds. Um, how to make sure

payment plans make you money. So, after

implementing payment plans, if you

hadn't done these before, your close

rate should increase. Duh. But if the

number of paid in fools goes down, you

have a problem. It means you're actually

getting people who used to pay you in

full are now taking payment plans. So,

those are the big points. All right.

Summary. Payment plan down spread the

cost of a product by charging some of it

up front and putting the rest into

scheduled payments. Payment plans get

more buyers like discounts do, but can

also boost profits because they agree to

paying full price over time. It's kind

of the best of both worlds. Payment

plans only grow your business if if they

get you more customers and those

customers actually pay. Seesaw down

selling gradually shifts from paid in

full to equal payments. It's a little

bit more custom and it's a little more

headache on the back end. If you have a

small business, you can probably handle

it. If you have a bigger business, it

can be kind of a pain. Payment plan

upselles. They get the original

discounted price if they pay the balance

today or up to x period of time before

that discount expires. Align the payment

schedules with paycheck schedules and

you will get fewer decline payments.

These are the seven steps of the downell

process. Full price, then offer a

discount if they paid in full. Step two,

third party financing, credit card

financing, and the layaway options. Step

three, split the payment in two and

schedule on their paycheck dates. Step

four, ask if they still want the

product. This is the off-ramp to a

feature downell. If it's eight or above,

you're good to go. If it's below that, I

would I would suggest switching the

features around. Step five, split the

payments into three. Schedule their

paycheck dates or monthly. Step six,

schedule equal payments over the entire

duration of time they're working for

you. Step seven, offer free trial in

exchange for putting a guard down, which

I will cover in depth in the next video.

Two quick pro tips. Number one, if

you're like, what do I pay sales people

on a payment plan? I have always

compensated off cash collected today. Uh

main reason for that is that requires

more salesmanship and that aligns the

interest of the salesman with the

interest of the business, which is

getting paid today. And if someone goes

on a payment plan and then you do a

great job and they continue to pay,

that's more the success of the

onboarding team, the delivery team,

which means that you should be able to

save any excess commissions on a payment

plan for people on the back end if

they're the ones making sure they're

getting paid. So that's number one.

Number two, if you have a recurring

revenue business, people are like,

"Well, how do you do payment plans in a

recurring revenue business?" You simply

state the annual contract as the price.

So let's say it's $3,000 a month for

whatever your service is. you say, "Hey,

it's $36,000." And if you prepay for a

year of service, you get it for 30,

right? If not, no sweat. And then you go

into whatever your monthly payments at

$3,000 a month. If with a a recurring

service, you might only have two step

downs instead of seven because you might

not have all these kind of like evenly

spliced things. That's more for kind of

upfronts or defined end periods things.

And with that being said, now we go on

to free trials.

All right, so we just completed payment

plan downsells. And if you get to the

end of the seven steps and someone's

like, I still don't want to pay you or I

still don't have the money. Either way,

you can offer a free trial. And I've run

a lot of free trials in my life. And I

think there's a wrong way to do them and

a better way to do them. And I will

explain the better way. So, same vibe as

always. Let's break down how I learned

this puppy. So, um, we were scaling gym

launch and we needed an HR platform and

Leila was looking at all these different

platforms and she ended up going with

this one. And uh I was like, "Well, what

made you, you know, pick that platform

versus the other?" She was like,

"Honestly, they were all more or less

the same?" But these guys said they

charged me 500 bucks and if I attended

the two or three training sessions, they

would rebate me the $500, but if I

didn't attend the onboarding and

training sessions, they would keep it.

And so, of course, I attended the

sessions and now I know how to use their

software and I don't feel like learning

anyone else's. And so they actually got

a customer and we stayed with that

platform for years because of a really

interesting way of basically doing a

free trial. Now theirs was they charged

and then did a rebate. But I saw the

structure and was like oo this is really

interesting. And so I was like what if

we did trials like this? And so that's

what we started doing. And so I call it

a trial with penalty. That sounds ugly.

That's how I call it internally. You

wouldn't say that to somebody. But it's

a trial with penalty. So basically, a

customer can try out your product or

service for free so long as they meet

your terms. For comparison, the win your

money back offer, the attraction offer,

gives customers the chance to get their

money back if they meet the terms. In a

trial with penalty offer, customers only

pay if they don't meet the terms. So the

win your money back and the free trial

with penalty are virtually the same

offer. We're just changing when they pay

and how they pay. So they'll mirror the

actions and results that you used in win

your money back, but this time we use

avoiding fees rather than winning your

money back as the incentive for

adherence. So they avoid penalties

rather than get or losing their money

that they paid originally. All right. So

with a trial with penalty, this isn't

here's my thing, see if you like it.

It's here's my thing. You get it for

free so long as you do this stuff, which

makes you a perfect fit for my next

offer. And if you don't, then you have

to pay for it. So it's kind of like a

win-win for you because if they don't do

it, then they pay. And if they do do it,

then they're going to be really likely

to buy the next thing. Now, I'm going to

give you some like, wait, so if they

don't do it, then they pay and they

didn't want to pay originally. I'll

cover how to get around that weirdness.

Let's say you normally close three out

of 10 people on your attraction offer.

And now you downell another four on a

trial with penalty. Then after the trial

finishes, you upsell three of them. So

you go from three sales to six sales,

which doubles your customers. I use this

as a downell, but it could also be used

as a front end. So I don't prefer to

advertise this. I prefer to present this

after someone already said no to giving

me money. Some people advertise this is

how they get customers. It's up to you.

Obviously that HR company advertised it

as they get customers. So, if you really

want to help people, convincing them to

put some skin in the game is a great way

to do it. And so, one of my sales rules

that everyone buys something who's

qualified. And so, I love that as a

concept. It's like everyone should buy.

Like, if they're qualified and we have

the thing, every person should buy. The

terms may change, but everyone should

buy. So, here's the difference between

trials and penalties and rebates. A

trial is they you just get a card and

then build them later. A

penalty/incentive is you get a card and

bill later and also if they don't

complete their activation activities.

So, the fees are associated with

non-conumption and not showing up to

other sales consultations. Remember the

four things we had in the win your money

back is you want to have them advertise

your business. You want to have them

show up for sales consults. You want to

do things that um that get them results.

And there's another one. I can't

remember what it was, but there's four.

And those are the main ones. All right?

So, you want to associate them doing the

things that get them results because if

they get results, then they'll probably

want to buy. All right? So, they're not

here for a trial. They're here to solve

a problem. So solve it because trials

don't do anything. Them taking action is

what's going to solve their problem. If

someone has a problem with that, it's an

easy thing to get around. Think about

the logic. If someone says, "I'm not

willing to commit to that." You're like,

"Well, do you want the outcome?" They're

going to say, "Yes." It's like, "Well,

you have to do this stuff to get the

outcome." So, if you don't if you don't

plan on doing this stuff, then you're

never going to get the outcome. This is

just the easiest way that I can give you

all this service for free. If you really

do want to do this, I do want to do

this. Great. then you're not going to

pay anything because you're going to

follow through. And this just gives you

added incentive to do it. And if this

doesn't work for you, then certainly

nothing else will. So let's walk through

some examples. So I'll do a B TOC

version. So business to consumer and

then I'll do a B2B. So let's say you do

a business to consumer offer 28 day kick

that habit blueprint, whatever. Right?

So you get the trial for free and avoid

the penalty fee. You must or to get the

trial for free and avoid the penalty

fee, you must attend all your consulting

calls, post your progress in the group

once a week, journal daily in our app,

and attend feedback sessions and

transformation sessions aka the upsell

opportunities. Businessto business offer

5day get your first five clients

challenge. All right. To get the tri for

free and avoid the penalty fee, you must

send 100 outbound messages per day.

Report stats on the outbound messages.

Attend the daily training. Post in the

group daily once you've done the

homework. attend your graduation call,

which is the upsell opportunity. And so

these look really similar to what the

when your money back ones were because

they are the same thing. Now, let's say

you had a therapy business. So offer a

free 28 day breakthrough therapy, free

trial plus penity. You're going to need

uh to do the homework before each

session and show up. If you don't do the

homework, you're not going to get the

results you want. And if you don't show

up, obviously, you're not going to get

better. This will give you an added

incentive to get better faster. So we

charge a $50 non-compliance fee for not

doing the homework or not doing the

session. If you don't do the homework,

then we can't help you in the session.

Fair enough. You just explain it how it

works. Now, in this 28 day thing, you

can have all the fees add up to the

exact same amount of money that you

would have charged in a win your money

back. So, if they have, call it 10

things they have to do over x period of

time, and it's a $500 thing, then you

charge $50 per thing. Now, if some

things are more important than others,

let's say sales consultations, then you

can make those ones $100 or $150 and the

other things 25. You want to weight the

prices based on the importance for you

as a business and for them getting

results. So here's my actual step down

process of how I sell free trials. So

number one is you offer the trial last.

If someone makes it clear that they

don't want your first offer, then

downell the trial with penalty. So

here's how it might sound. Hm. Well,

that sure is a pickle. Uh I'll tell you

what. How about we just get you started

for free? Would you be okay with that?

Great. We can help you out and if you

like it, you can stay. Just let me get

your ID and we get the process started.

Fair enough. By the way, here's a little

savage pro tip. If you're in person or

you're seeing the person via Zoom, when

you ask someone for other ID, they have

to take their wallet out. When they take

their wallet out, they can't say they

forgot their wallet. And so now, you get

the card, they can hold it up to the

camera or they can give it to you in

person. And then you take that. And what

I like to do is I like to fill out the

contract for them for a number of

reasons. One is when they fill out the

contract, you kind of stare there like a

weirdo, which is not fun. So instead,

you fill out the contract and then you

can make jokes about whatever's going

on. You're like, "Oh man, I should show

you my picture. It's brutal. Oh, you're

from uh Idaho originally. That's

interesting. Oh, you know what? My

cousin lives out there. Blah blah blah

blah. Right? You're going through and

you're filling this out. And you also

make sure that everything's filled out

properly and they didn't mess up the

form, whatever. So then the way I would

do it is I had the card between my

fingers, my index fingers, and I would

look at their wallet and I'd be like,

I'll trade you for whatever card you

want to use. And I would motion towards

the card, but I have this as collateral.

It sounds small, but these tiny things

are like how you facilitate sales. So

then they would then hand me the card

they want to use. And then yet again, I

copied the card on because it's very

easy for someone to fat fingering a

number and then all of a sudden I can't

run the card later. So by doing it this

way, I made sure that the card number

was correct and put in the proper place

on the contracts that we were in. If you

did an iPad, it works the same way. If

you do it on the on the phone, you can

have them show you the card either way.

And if you're not the one who's

immediately processing transactions,

you've got a separate finance team. This

becomes more important, especially if

there's any delay between purchase and

running the transaction. This also

avoids the I don't have the card I want

to use this. I don't have my wallet on

me. It gets around all of that stuff.

So, just a pro tip. All right. So, first

thing we do, we offer trials last.

That's how I'd say it. Always get a

credit card. So, you record their

information. You hold on to the ID

motion for their credit card. Say, "What

card do you want to use?" Now, they have

to leave a card. This is a key point. If

they bulk, just say, this is this is

going to sound so ridiculous for me to

say this. I, believe it or not, you

know, uh failed at closing a lot of free

trials in the early days. I had a tough

time. People would come in for a 14-day

trial and uh I'd be like, "Awesome.

Let's get you signed up." And I'd be

like, "So, what card do you want to

use?" They're like, "You said it was

free." And I was like, "Yeah." And

they're like, "Well, I'll just I'll give

you my card after the 14 days." And I

was like, "I mean, um, okay, I guess."

And I didn't know what to do. So, this

line came out of my mouth. And then I I

don't want to say I literally never

missed another trial again, but I really

want to say I'd never missed another

trial again. So, here's how it would go.

They would say, "We do the whole

contract." And I'd be like, "Awesome.

What car can I put down just so I can

complete your account profile?" So, one

is it's not to build it, it's just to

complete your account profile. And if

they bulked and they were like, "I

thought this thing was free." I'm like,

"Oh, 100% it is. This is just how we've

always done it." And by appealing to

authority, this hypothetical person who

makes policy and rules, everyone just

says, "Okay." And they just hand it to

you. I have no idea why it works. I just

know that it works. And say, "This is

how he's always done it." That's it. You

just shrug and you say it's how I've

always done it. Always sell staying and

paying. So remember at this point it's

actually a takeaway sale for you now. So

they've agreed they basically you try to

sell them and you're at the end and

they're like they it feels like they're

like not as interested. Now you have to

remember the leverage shifts because now

you're giving them stuff for free. They

have to prove why they're deserve to get

it after you said they had to pay for

it. So you say, "Listen, I'm only going

to do this and extend this honor to you

of me working for free to help you get

this thing if you do some things for

me." All right? So you ask directly. So

if this program got you the result, will

you stay longterm? If the person says

no, it. The whole point of the

trial, the whole point of the thing is

to get them as a customer. If they're

not interested in that, fine. Now, if

you advertise a free trial, then you

need to offer whatever you advertise.

But the way I said, remember, I use it

last. It's not what I advertise. I offer

it under terms. And so you don't want

them to begin with if they don't agree

with staying longterm. And the reason I

ask that is I don't want you to try it.

I want you to get results. And out of

integrity, I want to set realistic

goals. You're not going to hit your

long-term goals during this trial, just

to be really perfectly clear. But you

will establish habits that will help you

get there. And we're going to help you

do that for free. But if you want to get

your long-term results, you're going to

have to stay on after. I just want to

make sure that you're not looking for

some sort of quick fix. When you say it

like that, people are like, "Got it."

You're like, "Because listen, I can't

ethically promise you that." And as soon

as you say that, you now have the moral

high ground. They can't say to you.

All right? And so that's how you sell

staying and paying. So now that you've

said, "Okay, I'll do it for free."

Everyone's like, "Okay, sure, sure,

sure. I'll do it for free." And you're

like, "No, no, no, not so fast, Susan.

If you get the result, you stay in.

Okay. Do you think you're going to

accomplish this in the time period?"

You're going to get progress. You're not

going to get to your goal. I want to set

that expectation up front. So, as long

as you're comfortable with this, I'm

happy to give this little this little

test run, this kickstart for you, but

I'm only in this for the long term,

Susan. I think, and I want to ask you

directly, are you in this for the long

term? They say yes, you're in. You have

now sold the idea of them staying

longterm. If you can't sell that for

free, one, you need to look on work on

sales, but they also might just not be a

good prospect. Step four. So, now you

sell consumption commitment. So, explain

the fees after getting the card. Very

key. So, at this point in the sale,

right, we've we said, "Cool, let's get

the trial started. I have your ID. Let's

get the card. Sign it. You stay. You

sell the idea of staying longterm.

Awesome. Now, once we have the card, we

have the payment information. Now, we

basically get agreement on terms. It's

much easier to get agreement on terms

post getting purchasing method rather

than pre. I'm just giving you guys this

off of years of experience. Just use it

if you want. All right. So, I say

something like this. I say, "Listen, so

we're going to do our part as long as

you do yours." And that's that's fair,

right? Okay, cool. So, now I just ask

that you bet on yourself. So, if you

miss or skip any stuff, your results are

going to suffer. So, we charge to keep

you on track. If you miss, no big deal.

You'll get dinged a little bit, but it's

not going to get you off track. It'll

get you back on track with that little

that little ding. All right? So, if you

follow through, you're going to get all

of this stuff that I told you earlier

for free. So, this is the best way that

we can get you amazing results and keep

it free for you. So, it's the best of

both worlds. Now, that last line I used

more times than I can count, which is

this is the best way that I can get you

results and still keep it free. It's the

best of both worlds. I'd say that a lot

of times it works. Note, if you explain

the fees before you get the card, you'll

get way more resistance and way more

like, what about this and why is this

this? If you explain it afterwards with

the same like this is just how we've

always done it attitude, people will

agree or they'll tend to agree at far

higher likelihood. And the last point

that I'll make is that I always have

them initial next to each fee they're

agreeing to. And so again, you don't

want to have like 19 sets of fees. You

want to have it as few things as that

are important to you. So it'll usually

be the sales consults they have to

attend, whatever the key metric for them

getting results are, and maybe them

doing some advertising for you because

remember, you're doing this for free. So

they might as well do some advertising

for you. They got a post, they got to,

you know, give you a testimonial at the

end, whatever. So they have to agree to

doing those things. If you're going to

give a free trial, get some stuff for

it. That's the whole point of this. If

you're going to give, you should get. So

that's step four is that we get the

card, then we explain the terms, then we

have them initial next to all the fees

that are associated. We explain why we

have the fees, which is for their

benefit. It's the only way we could

still ethically tell you that we could

help you get results and keep it free.

That we get the best of both worlds.

Done. Great. So now,

uh, I like making the check-ins

required. That's basically just an

explanation of the fees. So I would say,

all right, uh, yep. And you agree to

attend each of these three check-ins.

The first time we do X so that you can.

The second time we do Y so that you can.

The third time we do Z so that you can.

Obviously, we charge if you miss these

three because it's the only way we can

get your results. So this is me

explaining how I would explain each of

the kind of clauses that I'm initial

having them initial next to. So this

would be like the sales consults. Now

again, I'm not going to call them sales

consults. I say, "Hey, you got to attend

nutrition so that we can fix your food.

You got to attend the the progress

meeting so that we can adjust the

nutrition to keep the results coming.

And you got to attend the transformation

meeting at the end so we can get your

after pictures. That should make sense,

right?" Yes. Okay, cool. Done. Right?

This is like there's not a lot to object

to there. The question is, okay, well,

how do trials make me money? So, this is

how I upsell from a trial. But

everything I just I went through is how

my step-by-step process for selling a

trial with penalty, which will get you

far more customers and long-term

commitment than just telling someone to

put a card and wish for the best. So,

when someone takes a trial, one of three

things happen. They like it, they hate

it, or they don't use it. So, here's how

I upsell in each of those scenarios. So,

if they like it, this is the easy one.

You already set them up for automatic

billing because it's a trial. Great. So

meet with them anyways during the

transformation meeting or whatever

meeting you want to have close to the

middle or close to the end and you still

offer the the longer term or higher

value version of your service or both.

All right. So again, they just didn't

trust you enough in the beginning. Let's

say you have three sales consultations

where you sell different stuff or have

potentials for upgrades. At the first

and the second, you should still

absolutely pitch the next thing because

now they're in they've had a taste. The

the whole dynamic completely have

shifted. All right? And so successful

customers tend to get even more value um

out of your better and more profitable

stuff. So, it's ethical for you to make

the offer for them. If you can help,

help. Now, let's say they hate it. Turn

the frown upside down. So, ask them what

they would have liked to be different.

Tell them they're totally right and that

you're angry at yourself for missing

this. Do not blame them. Only one person

can be angry, and it needs to be you.

Ask if they'll give you a chance to make

it up to them because of how outraged

you are at their terrible experience.

And now since you better understand

their needs that they're a better fit

for your new higher level thing, then

offer them that. Yes, this is a sale and

yes, about half of people, believe it or

not, buy this. They come in for this

free trial. They wanted more everything,

whatever. And you say, "That's on me. I

suck. I'm so pissed for you. That should

never have happened. I should have

offered you this and that's because I

didn't listen and I should have listened

better. So, let me make it up to you.

Sell this thing." Now, let's say they

didn't use it. You reach out to people

multiple times before you get to this

point ideally. But when you do that, you

explain that you need to meet with them.

You offer to wave the fees because

remember they signed that they were

going to do stuff. I don't want the $50

fees. Don't care at all. I do that just

to hold them accountable. And I tell

them that I offer to wave the fee if

they get back on track, right? So now

you can get them back on track or again

offer something better. So I say, me

personally, I don't like billing

non-starters because it's like a great

way to get one star reviews. I prefer

not to have great ways to get one star

reviews and a small fee isn't worth

that, but it's your choice. It's up to

you. So, I personally just use the fees

as leverage to get them back in because

that's where I'm going to get the

long-term lifetime value. A couple other

tidbits. So, to tweak tweak your trial

to get the most customers. If no one

takes your trial, lower the requirements

or the priorities. If people take your

trial but don't follow through,

emphasize explaining how the fees help

them and make sure that you include

meetings as mandatory. Like, you have to

highlight it. That's why I have the

little separate lines from them to

initial and I walk through it with them.

Don't let them read it. Explain each

one. Get them to nod than initial. All

right. If people don't stay on the back

end, better emphasize the value of

staying and paying. That's the early

part where I said, "Hey, if we get you

the results, would you stay?" We added

that back in to our scripting when I saw

my guys weren't doing it and we weren't

getting as many asentions. We added it

back in and then way more trials started

ascending. Let people make up for goofs.

So, people often get discouraged after

getting build, but you can offer the

opportunity to make it up. So, this does

a great job of getting people back on

track and converting, but if they miss

that, you're justified in billing them.

So, I don't see like if you they miss

something, you reach out. You reach out

again. You say, "Hey, I'll make it, you

know, I'll I'll wave it. Just come back

in. If they miss the next one,

it's up to you." I usually don't, but

that I think that is a completely You're

completely justified in billing at that

point. In terms of naming, just call it

a trial. Just say we do it in a special

way. And the way we do it gets people

results rather than than not results.

That's pretty much it. So, even though

the trial with penalty has some special

features, you should just call it a

trial. Um, otherwise, people may get

scared or confused and no one wants to

be penalized. All right? And if they ask

you why you do free trials this way,

just reply with. It's how I've always

done it. Payless now uh or pay more

later versus trial with penalty. So, I

use paylist now or pay more later as a

downell for physical products or

one-time services. I use trial with

penalty as a downell recurring products

or services. Also, I've only made this

work in businesses where the customer

has to do work to get results. So, if

you find other types of businesses that

this works for, these trials where they

don't have to do anything, let me know.

For the most part though, it's usually

when somebody has to do something. Often

times, like software, you usually have

to do a lot of stuff in the software.

Services, it's common for customers to

have to do a bunch of stuff. Um, that's

more that's more normal. Discounts uh

get card on file. So, some people get

weird when you offer free stuff and then

ask for a card. And if you have a super

low price, it justifies the card. So, a

small price uh means the car will

probably work when automatic payments

start. So, instead of a free month, you

might offer a first month for a first

month for a dollar or then $X dollars

per month when it recurs. And so, if you

want, you can offer for a buck, a dollar

down, $10 down, whatever, um if you have

a hard time with it. Anybody who has any

acumen in sales should never have an

issue closing a free trial with a card,

personally. Rebates are a little

tougher, uh but they work the same way.

You just get them to pay upfront. So, I

consider rebates similar to when your

money back, but usually for smaller,

like smaller in scope. So, just get them

to do the thing you need them to do and

then they get the rebate. So, that was

kind of like the the story that I gave

with uh Leila. So, she paid, you know,

500 bucks. She had to attend two

webinars or three webinars, very clear,

very small, very straightforward. That's

where rebates are kind of nice. Um

rather than, you know, billing because

the thing is the rebate, you know, the

card works because you they paid for it

and they get it rebated, which is

basically a rollover onto their service

afterwards. So those are the uh

important points. Quick summary. In a

trial with penalty offer, customers can

try our product or service for free so

long as they meet your terms. Trial with

penalty downell offerers get yeses from

people who would have said no. To do

them, you get the card, get the

commitment, explain why they have to do

it to get the results, the meetings they

have to attend, and what happens if they

don't do it. And use the same refund

criteria from your win your money back,

the attraction offer number one to

create your trial with penalty criteria.

This way, at the end of the trial,

they've done the stuff that makes a

great long-term customer and they

advertise your business for you. Breakup

fees you can charge by criteria or you

can charge a lump fee. I like breaking

them up. So, you can either say it's $50

for each of these occurrences or you can

just say if you mess up any of these,

you pay the full boat. I prefer the

small dings because then people are

like, "Oh, I missed one now. I shouldn't

even try." Right? I don't like that. You

make money by getting people results and

turning them into customers, not nickel

and dying them with fees. My personal

opinion. So, use mid to trial check-ins

to make more offers. If they love it,

give them more of what they love. If

they have problems, swap it for what

makes sense for them. If they aren't

using it, offer the ability to make it

up to avoid the fees. This style of

trial converts as much or a much higher

percentage on the back end, which is why

I do them. It retains goodwill because

you actually look like you're trying to

help, which you are, and you get

agreement before explaining the fees,

just as a quick reminder because it's

super important. And you can always do

normal trial as a downell and remove

that, but at that point, I don't even

think that person really is. they're

just trying to leave. Um, and remember,

everyone buys something.

That's free trials.

So, we just covered payment plans and

free trials or trial with penalties,

whatever you want to say it. Now, we

have the third and final of the downell

offers, which I like to call feature

downells. Let's begin. The same five.

How I learned it, description, examples,

important points, and summary. Look how

clean this drawing looks. So nice. Okay,

so fundamentally, you want to buy the

thing. No, it's too much. I remove some

features. I say, "How about now?" That's

how this works. All right. So, how I

learned it. A friend of mine told me

that he had 3x his close rate last

quarter from 25% to 75%. And I was like,

"What on God's earth did you do?" And

so, I asked him if he used a payment

plan or discount. He said, "Neither."

And I was like, "Okay, how does that

work?" He said he lowered his price by

removing a feature. And I was like,

"Well, what feature did you remove?" And

he said, "My guarantee." I was like,

"What?" He said, 'Yeah, so I have my

$4,000 thing and then people say, "Uh,

no, I can't afford that." And he says,

"No worries." He said, 'I can do it for

$2,000. I just won't give you a

guarantee. And then what happens is

people see the value of the guarantee

now. And then they reclose themselves on

the higher priced offer. And so he went

from 25 out of 100 people buying the

expensive thing to 35 buying an

expensive thing and 40 buying the

downell. That's how I learned the

feature downell process. So here's the

description. So feature downells lower

prices by changing what the customers

get. So here we're actually lowering

prices. The all the other examples were

changing terms. Here we lower prices.

And I do them by offering less quantity,

less quality, lower price alternatives

or cutting optional components. So all

features have a price and a value. This

is where it gets really, really slick.

If you remove something, the price goes

down. Sure, but the value goes down,

too. So, what features you remove and

how much you lower the price affects how

good of a deal the person gets. So, this

changes in your offer's price to value

affects how people buy. So, people want

to get the best deal for them. And so,

if you remove stuff they hate and then

lower the price a lot, they get a great

deal. If you remove stuff they love and

lower the price a little, they get a

worse deal. And this is where the

science of feature downselling becomes

really, really sexy. All right. So

people will see the value in the thing

you removed after they see the

difference in price. As in people will

weigh how much money they save against

how much value they lose. So feature

downselling gets customers to re-upsell

themselves on the more expensive offers.

So this means that you want to remove

features from highest to lowest value

since people want more value for their

money. This incentivizes customers to

get the highest value purchase for them.

Feature downells have a simple formula.

take something away, lower the price,

and then so many words, ask how about

now? So, let's do some examples. So,

let's say you're downelling product and

service quality. So, for services, this

might mean a lower amount, fewer

sessions, less time, shorter duration.

For products, it might mean fewer of

them. All right? So, a product quantity

downside would be, hey, instead of a

three-month supply, how about we start

with just one month supply? A service

quality downell might be saying, instead

of four sessions a month, why don't we

start you at two sessions a month? So

this is service and quantity. All right.

So let's talk about product quality. So

here's how we would downsell. You think

about older versions, less reliable

materials, materials of lower social

status, etc. All right. So product

quality. Say instead of set of leather

seats, how do vinyl seats work? How's

that sound? Feature downselling. Service

quality is a little bit more complex

because there's a whole bunch of them.

All right. So this means a lot of things

and I'll give you a few ways that I

change the quality of services. And the

hint is that this always works to

increase service quality as well. So you

can go the other direction as well when

you're thinking about each of these

vectors of quality for services, you can

make your more expensive thing have more

of these. All right. So instead of a

fiveminut response time, why don't we

just start you at overnight response

times? You'll still save some money and

you'll get your answers just with a

small delay. Here are some more service

quality features. So time availability.

So specific times versus whenever you

want. Whenever you want is obviously

more valuable. So if you're downselling,

you'd say, "All right, well, you can

only come on these office hours rather

than whenever you want." So days of

week, so that would be Monday,

Wednesday, Friday versus all days. It

could be times of day, so 9 to5 versus

24 hours. It could be amount of time, so

you get 15 minutes of board calls versus

60 minutes of board calls. It could be

location availability. This is where one

location versus all locations we own. It

could be cancellations, which means you

can have rescheduled fees or it's free

for you to reschedule. Uh speed of

response, you can reply in minutes

versus hours versus dates. speed of

delivery. So you can wait in line versus

priority versus same day versus next day

versus next week. These are all

different service ratio one-on-one, one

on many, many to one, which is the

ultimate version of this. I have many of

my team members on one person.

Communication method. So text support

versus chat support versus video

support. You've got provider

qualification. So is it the owner, a

longtime employee, or a new employee

who's super junior? Is it live versus

recorded? So you can watch it happening

now or watch it after it happens later.

You could have in person versus remote.

Would you rather have be here in person

with me or watch it somewhere else?

Would you rather have do it yourself?

Would you have us do it with you or

would you rather do it for you? Uh

expiration. So this thing works forever

or this is only works x times or only

works at specific times.

Personalization. Do you want it generic

or do you want it made just for you?

Insurance guarantees. So this is uh

think of like lengths of time. So this

works for one year or for life in terms

of the guarantee. So coverage. This

works uh when specific bad thing happens

or works when any bad thing happens. uh

terms unconditional or only if you do X,

Y, and Z. It's a conditional uh

guarantee. So, all of those things are

quality service downells, which you can

also flip into upsells. But if you're

thinking about like, man, how do I make

my how do I how do I remove features?

Well, you probably haven't even

quantified half of these for yourself.

So, quantify what your service

expectations are. You don't need to

mention any of this stuff to somebody,

but when you want to start peeling

things back, you then tell them what it

is and then remove it. So, downselling

by removing entire features. So rather

than lowering quantity or quality,

remove the feature itself. So in the

story, he removed a guarantee. So

instead of priority chat support, email

support and calls, why don't we just

keep it to chat and email support, but

drop the calls to save you some money.

You'll still get your answers, it'll

save us some time, and we can pass those

savings on to you. So we remove this

stuff, and then they can keep that stuff

for a lower price. So feature downelling

done for you to do it yourself. So this

is a key one. This probably happens for

a lot of service businesses. So some of

you guys have like online trainings and

things like that, one to many that you

were like, "Hey, what if I downell

something else?" Most of the times you

should just ignore it. But if you do

insist, here's a way to do it. So if

someone says no to all your service

downells, you can downell another

product that solves the same problem. So

for a chiropractor, for example, you

say, "Hey, instead of chiropractic

adjustments, let's just start you with

some tools you can do it yourself at

home." Then you'd sell home massage

tools, foam rollers, mats, etc. So, this

is just like the no sale that I had in

the supplement thing where someone

doesn't come in, they don't want to buy

the service, we say, "Fine, we'll do

nutrition consult." And then we sell

them the do-it-yourself version, which

was the at home thumb drive with

nutritional support. But if you're going

to do this other thing, what happens?

You open up a whole another can of

problems that we get to solve through

them buying more stuff. If you're a

painter, well, if you can't afford me

painting your house, why don't I just

give you the paint and let you lease one

of our spray machines for daily use?

Easy downell. Alex Ramoszi, instead of

me and my team buying your company and

actively growing your business, why

don't you just attend a workshop? Cough.

Go toacquisition.com. Right? That's the

idea. So done for you is me and my whole

team doing everything we possibly can

for good forever. Well, if I peel that

back to, okay, well, just come to a

workshop and you get a couple days and

we're going to look at all the things

that we would do. We'll tell you exactly

we do, but it would be in an hour rather

than for life. It's two days. The hour

is if you're with one of our experts.

Okay. So, let's do important points. So

remember, never never negotiate price.

Maintain the position of a help helpful

guide. So feature downelling means

trying to find the best deal for them.

You can have unlimited shots on goal

with a customer as long as you remain

helpful. You're like, totally

understand. Let's see if we can figure

out something that'll work for you. No

one's offended by that. If you're like,

oh, if you don't do that, do this. It's

like it feels a little feels a little

icky. So you just want to keep that

frame back foot of like let's just find

something that works for you, man.

Tweak. Okay, this is important. So,

tweak your feature downell process. So,

we have the job of making the product

have the highest value to cost in the

eyes of the customer. But in the

beginning, you won't know much about

your customer preferences. So, as you

solve the same problems for the same

type of customer, you want to learn what

they find most valuable and then you'll

start standardizing it. Because if

everyone has the same order of

importance or preference, then when you

remove things, you can remove things in

a specific order. like my friend removed

the guarantee and he knew that that got

the highest amount of uptakes. All

right, so here's how I standardized my

downell process. So first I cut

something valuable and lower the price a

little bit. All right, so that's exactly

what he did. So he had his guarantee

thing. He lowered the price. Now I said

2,000. I don't remember what he lowered

his price as, but if let's say it was 4

grand and he says, "Okay, well I'll

remove the guarantee and offer it for

3500 because it's a tiny amount

different and I took something really

valuable away." They're like, "Oh no,

I'd rather have this." So, they

re-upsell themselves because I took

something really valuable and decrease

the price a little. Now, at this point,

if they say no to that, I do this to get

well, I do that to get them to

reconsider the original price. If that

fails, I continue removing features and

lowering prices until they buy. So, I'd

rather have people get something rather

than getting nothing. Now, at this

point, the next feature I would

typically remove, I would have a big

decrease in price because now I'm

saying, "Okay, this might be a price

issue." So, now I'm going to try and

take away things that they don't care

about with a big decrease in price. and

now I'm increasing the value. So

basically the first one is like a hip

check of like big valuable thing like a

guarantee tiny decrease in price. They

re-upsell. They don't re upell then we

say hey let's put the guarantee back in

and let's take this other feature away

and take a massive amount off the price.

And then at that point they're like oh

wow less of this thing I don't care

about and way lower price sounds good to

me. All right. Now, if you want, you can

start naming your feature combination.

First class, business class, economy, as

you remove features and change prices.

Now, I prefer to name my cheapest

combination. Remember the rental car

story, the minimum. So, I like it

because it implies that they have to get

at least that thing. And if someone

rejects all other packages, I just say,

"So, nothing more than the minimum

package." Then, same as they told me.

And we do that because it always only

works. uh doesn't always work, but it's

uh it's very effective. Okay, so just

like we have our temperature check

during the payment plan down process, we

also have a temperature check during the

feature down process. So if you make two

changes in a row and they still refuse,

make sure they still want the thing. You

still say the same, hey, real quick,

just to make sure that we're on the same

same scale here, uh 1 to 10, how bad do

you want this thing? Now, again, if they

say 8 to 10, cool, we're going to figure

out something that'll work for you. they

say less than 10, it's like, hey, maybe

I need to reconfigure this thing or

let's just figure out different terms of

payment. And you actually cross-ell back

to the payment plan downells. So, eight

or above, start payment plan downelling.

After each downell, ask deal or fair

enough. And this is something that I've

just found that works ridiculously well

with feature downells or payment plan

downells is that it's you're

fundamentally kind of in like a barter

mode. Not a bad way. It's just like,

hey, let me make this work for you. So,

if we did this, would that work for you?

Right? Does that sound fair? That like

deal that work? When you say those types

of things, people have a hard time uh

denying reciprocity. And so you say, "I

want this thing." You say, "Got it. I

will meet your I will meet your terms. I

will remove this thing, but now you will

meet my price." Fair enough. And if you

do that two or three times, it's very

hard for people to say no because they

it's hard for them to say no. That's not

fair. And um my podcast episode 202 I

give a full verbal breakdown of exactly

how I say this with tonality. So if you

want to listen to my podcast episode 202

Alexi the game uh you can listen to me

actually walking this through. And so if

you've got sales guys who do downells

like highly recommend. Now um free

orientations boost do-it-yourself

feature downells. So let me explain what

I mean. So I ask so even though we're

not going to work together. So this is

like now they're they're not they're not

buying anything on X. I still want to

help. This is like the nutrition thing.

How about you just come to a free

orientation on X tomorrow? At the end of

the orientation, I offer a DIY product

that solves the same problem as the done

for you services just at a lower price.

So, I could also say, "Come to our home

painters orientation." And so, at the

home painting orientation, I could then

sell the daily rental of my machines and

some buckets of paint for them to go do

it. Right? That's the idea. So, we just

have another way, another version of our

offer that doesn't take much time from

us for them to do it and still pay us.

Now, um just as a little pro tips here,

highly recommend feature downselling

your guarantee. Tiny decrease in price,

remove guarantee. Many people re-upsell

themselves and you could also feature

downell current customers. So, this is a

pro tip. So, we found across our

portfolio companies something really

interesting. So, when we compared LTV

across all service segments, there was a

service segment that was unbeknownst to

me that was the second highest LTV. And

the reason that it was unbeknownst to me

or interesting was that they were at a

far lower price. So typically the

highest LTV customers are the ones that

pay the most. But in this instance, the

churn was so low on these low to

mid-priced customers that they ended up

being worth a lot of money. And so this

is what was different about this

particular customer group. the customers

that we in our companies had proactively

went to, this is after we've already

sold them stuff, said, "Hey, you're only

using four out of the six services that

we offer, or you're only using four out

of the six features. Did you know that

you can get these four features at this

lower rate?" People are like, "Oh, no. I

didn't know that." And as soon as we

say, "Wait, well, why don't I just go

ahead and take care of that for you, and

I'll just lower you to this rate. That

way, you have the better deal for you."

Those people never leave. So, if you

have people, there's this big misnomer.

It's like, well, I want to just

hopefully I'll just build them as long

as I can.

No, find the like, hey, I get where

you're coming from. This blew my mind,

which is why I'm sharing it with you. If

you see people aren't using your stuff,

they're going to cancel. And I have tons

of data to support this on the gym side.

I'm sure it across it works across all

businesses, but if people don't consume

the stuff, they cancel at a much faster

rate. And so it's much easier to just

adjust down the price to match what they

actually use because that's what they're

actually getting value from. And then

they're like, "Wow, these guys were

ethical and honest. They proactively

asked me to pay less. I love these

guys." They went from being like, "I

might cancel because I'm not using some

of this stuff to these guys are amazing

because they initiated it." So sure, you

can do this on a cancellation call.

That's kind of like a last chance, but

you get the goodwill if you do it by you

reaching out to them. And this is the

last one that I love. This is the only

way that you can lower your price. All

right? So, you can you can quote me

here. This is the the big exception that

you can lower your price without

changing what you give them. And that's

because you change what they give you.

So, let's say I have a $500 thing and

they say, "I just absolutely cannot

afford anything less than $400." And I

say, "Totally understand, but for $400,

you would do it." Yes. Okay. I will

accept that under these terms. So, now

I've changed the offer. I say, "I'll do

that if you leave me reviews on all

these sites, you leave me testimonials,

you post every day, and you send me two

referrals right now. Introduce me to two

people." By doing this,

I then trade $100 for what is hopefully

more valuable to me than $100 of

advertising. And so, every person can do

other stuff. And so, fundamentally, this

is price plus barter. So, if somebody

comes to me, and I did this. If somebody

comes to me and says, "Hey, Susan signed

up for $400 and I signed up for $600."

I'm like, "Oh, do you want to do what

Susan did?" Because I would love that

because Susan cleans my gym for me every

day and she also introduced me to three

of her friends and she posts on Facebook

every day. Do you want to do that? We

can get you set up right now. And

they're like, "Oh, I'll keep the 600."

I'm like, "God, no worries." So, you

absolutely have your ass covered because

these are the terms under which Susan

did pay less. And so if someone

absolutely no way can pay less, barter

because there's always some things that

they can do for you. And most of the

time that's going to be in the form of

advertising. They can leave your

reviews, they can leave you

testimonials, and they can send you

friends. So summary. So feature downells

lower prices by removing stuff. You take

something away, lower the price, can

ask, "How about now?" Typical feature

downells offer less quantity, less

quality, cheaper alternatives, or remove

features altogether. People tend to see

the value in what you removed after they

see the price difference. You may get

more people to take the more expensive

up by doing it this way. If you remove

stuff they hate and lower the price a

lot, people more people will take the

downell. If you remove stuff they love

and lower the price a little, more

people will take the original offer. So,

the first downell gets them to

reconsider my first offer. The rest of

my downells get them to consider the

best deal for them. If a prospect

rejects multiple downsells, see if they

still want your thing before continuing.

This is the 8 to 10 thing. If a prospect

likes a combination of features but

still doesn't like the price, start

payment plan downelling, which is very

effective at this point because now

you've really got this thing right for

them. It's like, "Okay, this is a suite

of features. This is the price." They're

like, "No, this is everything I want. I

just can't afford it." They're like,

"Can you afford it in general or not

afford it today?" They're like, "Today,

cool. Then let's break this out. How can

you do half now? How can you get paid?"

And you go down that path. Now, you can

feature downell existing customers

before they cancel, which actually

extends the LTV. And you can discount

customers in exchange for them

advertising your business. Those are

feature downells and finishes or

concludes our downell offer section. And

in the next and final of the four four

prongs, we talk about continuity offers.

So we just finished the downell offer

section and now we move on to the magic

of continuity offers. I've been a

continuity guy my whole life and so this

is a section that I hold near and dear

to my heart and has made me a tremendous

amount of money. It also stabilizes the

cash flow of the business. And so in our

four money models, we have attraction,

upsells, downells, and now kaboom,

continuity. So continuity offers provide

ongoing value that customers make

ongoing payments for until they cancel.

They boost the profit from every

customer and give you one last thing to

sell. Continuity offers are awesome

because you sell once and get paid again

and again and again. So here's my quick

explanation. Let's say you offer

something for $1,000 to a 100 people and

10 people buy. You make $10,000. 10

times $1,000. Okay. Now, let's say that

you talk to the same hundred people, but

you make your $1,000 thing, $50 a month

instead. And at 50 bucks, we can get 40

out of the hundred to buy. And if you

keep those people for 20 months, you

still make $1,000 from each customer.

So, you go from making $10,000 now and

$0 over time to $2,000 now and $40,000

over time. And as an added bonus, in the

first example, if you only sold 10

customers, you'd only have 10 customers

to upsell later. If you used a

continuity offer and sold 40 customers,

you'd have four times the customers to

upsell later, which is a massive

difference. This is fundamentally why

people do continuity. You can sell more

people at a lower price. You can still

collect the same LTV, and you get four

times the customers to upsell later. The

pros are you can attract more customers

compared to something more expensive.

The cons are, but you make way less

money now, which makes it tough to use

as an attraction offer on its own, which

is why we put it last, or at least why I

tend to put it last. So the TLDDR is

that by making continuity offers last,

we get the best of all worlds. We get

cash today from attraction offers,

upsell offers, and downell offers. And

we get a little cash today and tons of

cash tomorrow from continuity offers.

Note, to be clear, you can make

continuity offers whenever and however

you want. There are no rules. All right?

They can attract new customers, upsell

and downell current customers, or

re-engage all customers. Same as all the

others. So the objective here for

continuity offers within the money

models that I explained is to maximize

lifetime value per customer. These have

lower absolute gross profit but higher

gross margins oftentimes. There are

three topics we will cover. Downell the

upsell calculating back of napkin LTV

and big head long tail. So let's rock

through it. So down the upsell. So this

is my two cents. I found it works best

to downell your upsell. So get more cash

up front, sell shorter duration, and

then add value and then sell it for

less. All right. So when I explained

this, I had my $16,000 16 week thing,

$1,000 a week. And then I would say,

"Hey, let me give you five times the

value and then it's less." And people

were like, "Whoa, but I extended the

term." So that's how I downsold my

upsell. A lot of times people want to

increase the price of the upsell.

There's nothing wrong with that. This is

just an alternative method that I found

worked really well. My challenges in the

beginning was $600 for six weeks and

then the back end we sell $200 per

month. So it's less. So one is $100 a

week, one's $50 a week. It's half the

price. And as a member, you get all

these benefits, right? And so I like the

downell the upsell process because if

they said yes to this thing, they're

like, "Oh, this is an even better deal."

and then we convert even more of them.

All right, so here's how it sounds. So,

have you enjoyed everything so far? They

say yes. Mind if I tell you about a way

to save a little bit and get a lot more?

They say yes. You say, "So, given you've

enjoyed X, Y, and Z, we want you here

for the long term." So, here's what

we're going to do. If you're in this

with us for the long term, we want to

reward you with even more stuff and do

it for less. You in? Great. That's the

sale. It's very straightforward. So,

people think about monthly cash flow

more than they think about duration. So,

we had threeear contracts. So the total

contract value was way higher than the

16 weeks, but the monthly payment was

significantly lower. And so this is the

power of commitments and contracts. It

can significantly increase LTV if you

deliver value. So that's downell the

upsell. Now let's talk about calculating

back of neck and LTV. So the simplest

way to do this is look at your price

divided by your monthly turn and that

gives you your lifetime revenue.

Remember we still have margin on this.

We still have some cost of delivery. Now

the gross margin times lifetime revenue

equals your lifetime gross profit. So,

for example, let's say our price minus

our cost of goods times 100% equals our

gross margins. So, let's say we have a

$100 price, $20 cost of goods times 100

equals 80% gross margins. Okay, so now

we take our 80% gross margins, we

multiply by our lifetime revenue, and we

get $800 of lifetime gross profit.

That's how much we make per customer

over lifetime. That is what you can

calculate for yourself given whatever it

is you have. So you divide your price by

your churn, that gives you the revenue.

Then you basically just figure out what

your gross margin is, multiply that by

that, and there you go. So getting

people into continuity automatically

extends LTB. Even with a company that

does one-time transactions, most

recurring stuff that has basically no

added value, I'm just being super real

with you, the recurring is usually three

months, which still 3x your LTV. So if

you sell physical products, which maybe

have onetime use, if you just get

someone into subscription, it usually

triples the value of the customer. So if

half the people do that thing, then

you've got half the people doing 3x and

half them doing 1x, which means you

double the revenue of your business. Not

bad, just by making it available. So the

valuable money lesson is people think

more about price than they do about

term. They think more about what they

have to pay today, not what they're

going to have to pay tomorrow. To extend

LTGP, just to give you an example here,

if you have that $100 per month thing

and you have 10% churn, your lifetime uh

revenue would be a,000 bucks. If you go

from $100 divided by 3% insurance, you

go from 10% to 3%. You have a $3,000

lifetime revenue. Massive. So some

people are like, "Oh, it's only

decreasing churn by, you know, 7%." No,

you decreased it by 70% or 300, sorry,

300% in terms of what it is. All right?

And so churn is how many customers leave

monthly from the ones who started the

month by percentage. So if you want big

LTGP, conquer churn. make this number

the people who cancel every month go

down and the amount that you make from

that is unbelievable. So bats back of

napkin LTV. So now let's talk about big

head longtail. So John taught me this.

He said you can shear a sheep. I should

say sheep. Uh you can shear a sheep. You

can shear a sheep for a lifetime but you

can only skin it once. And so he

explained this one thing to me that I

have always remembered. He said you know

I had this membership on tennis salon

that was $100 down then 10 bucks a

month. He said or you could just pay

$19.99 a month. He said the he said

people would call him up before their

cards would expire to make sure they got

to save that $10 a month thing. And so

because they felt like they had bought

that lower rate, they didn't want to

lose it. And so that concept of the big

headlong tail came from John. Like if

you pay $1,000 and then something's $50

a month afterwards, the likelihood that

you want to cancel that's way lower. And

so if you say, "Hey, you can pay a,000

bucks now and then you can earn this

lower rate or you can pay $200 a month."

A lot of people are like, "Shit, I'll

just pay the grand and then keep the

50." But the thing is is that 50, the

churn on that 50 is so low that you even

make more overtime than the $200 a

month. So, you have to play with the

numbers here. But typically, the more

offset the upfront versus the

continuity, the more valuable it is. And

I will do one little side quest here and

then we'll get into them. I think the

main reason that a lot of education

businesses and media businesses do not

have good continuity is because the

price to value is mis mismatched. If I

teach you arithmetic, the day before you

learn arithmetic, it's unbelievably

valuable. You you learn you will be able

to do mathematics in the world. How

valuable is that? The day after you

learn arithmetic, you getting a course

on arithmetic is worth nothing. And so

the problem is that a lot of uh media

and education businesses will take that

continuity concept that I talked about

earlier like, well, I could sell way

more people. But the problem is that the

value diminishes precipitously with

information because once you've learned

something, you've learned it. you've

gotten, you've extracted the value. And

so, the way that I like to think about

this is that either you sell bulk

payments up front, so you sell annual

memberships, which I'm obviously a big

fan of, or you can sell one-time prices

for things that deliver one-time value,

and then you'd have much lower

continuity for things that deliver

ongoing value. And so, you basically

break apart the things that are one-time

value versus consumable value. And I'll

give you an example. So, in gymatch, we

had um like a sales system. Once you

install the sales system, you have the

sales system. Okay, got it. So, that

would be one-time value. Something that

would be recurring value or consumable

value, but would be calls with uh one of

our business consultants who's going to

make sure that you're tweaking the

things in your business and look at the

metrics every single month. Having

access to the new plays or new releases

that were released every single month.

That's something that's consumed every

single month because it's new. If we had

new ads that we were going to test and

run to make sure they were winners, then

every month you're like, well, I want

the new ads. So, those are things that

are consumable. So, it makes sense to

price the payment plan or the continuity

based on the value of those consumables,

not the blended value of the one-time

thing and the consumable because that

blended value would be much higher and

would have a much higher likelihood of

churn. And so, this is how I would

prefer to fix most education business.

There's nothing wrong like they often

have high churn simply because they're

mispriced. they kind of try to price in

the middle when really you should price

way high up front and lower overtime or

alternatively just charge annual and

then that way you're just basically

looking back into the future and saying

hey if a year from now you can do all

these things would that be valuable yes

and then you have a whole year to figure

out what the next big thing you're going

to have basically buys you more time to

figure out what the next offer you're

going to make them that the first offer

you did solved. So if I taught you how

to sell well then maybe you want to have

learn how to market. If I taught you how

to sell maybe you want to learn how to

onboard. there's going to still be the

same offer solution cycle that exists

and you can still include that within

the continuity that you have. So, real

world offer. So, let's say you $5,000

down, 200 bucks a month. This also the

big head loan tail helps with client

finance acquisition because you have

this big upfront payment. You can offset

the cost to acquire customers, offset

your sales commissions, and then you get

the continuity. And the nice thing here

is the cancellation rate is very, very

low because of some cost fallacy. People

don't want to lose money they put down.

So, it's very unlikely someone's put

$5,000 down and then cancels month two.

Enterprise value is based on a discount

applied to future cash flows which

really comes down to how much money and

how likely is it to occur. And so for

you to have a very big business, you

want lots of money that's going to

happen in the future that's very likely

that gives you a big multiple on the

value of your business. If you have very

little money and it's very unlikely to

occur, then it's a small multiple or

none at all. So this features into how

likely will we retain customer retain

customers, retain revenue and have that

increase over time. This is where

continuity becomes more valuable. This

is again, this is not in the book. So,

this is me giving you bonus stuff. Um,

there's a difference between recurring

and reoccurring revenue. So, Netflix is

recurring. Think memberships. Coca-Cola

is reoccurring. I am a Coca-Cola product

buyer. I buy lots of their drinks. And I

do that on a regular basis, but I don't

have a fixed membership, but I reoccur.

Both are great. The key with this one is

that you just need to demonstrate that,

hey, I for example, there's a sauce

company that I like and I b I've bought

their sauce for like four straight years

and I use it every single month. I go

through three or four bottles a month

and I've been using for years. And sure

as hell, you can bet that they can

calculate that the average person who

buys a bottle over time buys another 20

bottles. That makes it a very valuable

business. Company one, let's say, that's

got a top line of $10 million IBIDA 3.

Company 2 is 10 million and 3 million

IBIDA. Okay, this one's all

transactional. You might get a 4x

multiple. This is all recurring and

based on how much you retain it, it

might be worth 8 to 15 times. So it's 24

to 45 million. So between 12 and 24 to

45, that's a hell of a lot more money.

So this is problems worth solving. And

so if they stay, buyers will pay. And

when I say buyers, I mean investors. So

my personal note is that you sleep

great. This is me telling you personally

when you know on the first of the month

that all your bills are paid and your

profit is already locked in and

everything else you have is gravy. And

so recurring/continuity equals

stability, which is why it's the fourth

pillar of this. It's also the thing that

will usually make your company the most

valuable. So, have I sold you?

Hopefully, on adding some recurring

element to your business. Great. So,

let's get to the three best combinations

that I've seen and used. Continuity

bonus offers, continuity discount

offers, and then the wave fee offer. All

right. So, let's rock and roll. And now

we do bonus offer.

So, we just covered the intro to

continuity offers and why continuity

offers will make your business more

valuable. They will stabilize cash flow.

They can sell more customers that you

can potentially upsell in the future.

And they give you one last thing to

sell. Now, we start into continuity

bonus offer, which is one of my favorite

continuity offer structures. So, here's

how I learned it. I saw this ad that

said, I'm giving away all my courses for

free. And I was like, that's insane.

What's the catch? And so, I had bought

some of this guy's courses. So, I knew

that the courses, the price points that

he was selling them for were the legit

prices. And so, for me to buy all of

them at once, it would have been

$24,000. He said, "Or you can just get a

free trial of my $399 a month

newsletter." So, I get the first 30 days

free and I get all of this stuff just

for trying it. And I was like, "Wow,

what a deal." Then on the thank you

page, it said, "Or you can pay today for

$299 a month. And you get just the all

the back newsletters that I've done up

to this point if you do this. and you

get to lock in this $299 a month for

life. This is also a lifetime discount.

This is a combination. So, uh, one of my

team asked me, they're like, "Man, I'm

thinking about all the different

businesses that I've seen and some of

it's like combination of this and this."

It's like, yeah, that's 100% the point.

These are as as narrowed down as I could

focus them so that I could kind of teach

or break down each of the concepts, but

these absolutely mix and match. You

absolutely can do a one-year midway back

into a rollover offer into a continuity

bonus that also has some lifetime

discount components to it. like there's

unlimited variations and that's the joy

of this or this is what I love when I'm

building a money model for businesses

taking the the Lego pieces and putting

them together and being like wow look if

we did this we get this percentage here

look how much we can extend LTV that's

the that's where the real magic happens

but you can't build a building unless

you learn how to lay a brick so that's

what we're doing okay so note he didn't

offer the $24,000 offer he simply valued

it all right now when I saw that I was

like that's a really cool offer this is

then when it happened in my world years

later. So, there was this gym owner.

They hopped on a call and I was like,

"Okay, you know, tell me your numbers."

And he was crushing everyone's numbers.

And I was like, "Dude, what are you

doing?" And he explained that he had a

new way of getting members. And it

wasn't that he had started offering a

different front-end offer in terms of

his advertising. So, he kept our ads, he

kept the copy, all that stuff was the

same. But when people came in, he had a

different way of kind of judo chopping

how he would make the presentation. And

so what he did was he increased the

price of his challenge. And so then he

offered that thing after selling it to

them as a free gift for just becoming a

member. So remember I came from the gym

world. We wanted to sell continuity. At

the end of the day you just want

everyone to get into memberships. But

the thing is no one wants to buy a

membership. That's the problem. And so

we have to come up with 21day

transformations, 28 day transformations,

six week challenges, all this stuff to

get people in the door. And then they

realize after they work out, they feel

good. They want to do this for life. But

people don't just come and sign up for

memberships. Not often. And people get a

way better experience when you have some

sort of like structured onboarding. And

so what he did was he was like, "Huh?"

He said he did it by accident one time

and then he was like, "Oh my god, that

went so easily." Which by the way is how

most of the sales innovations happen.

Somebody came in and he sold them on the

challenge, but they couldn't afford it.

And he said, "You know what? I'll give

you the challenge for free if you just

sign up as a member." And they were

like, "Oh, cool." And just like that, he

figured he could take this really

valuable thing and get everyone in

continuity by just giving it to them for

free. And so by doing that, he was

closing 70 to 80% of people walking in

the door, which is monster. And he was

getting them to sign up at full price.

And my personal benefit, there's this

cool goodwill feeling of like, you know

what, you want this really valuable

thing, I'll just give it to you as a

gift you sign up as a member. And here

are some benefits of becoming a member

that you wouldn't even have if you

bought this. So now let's get into

description. So with continuity bonuses,

you give the customer an awesome thing

if they sign up today. Typically, the

bonus itself, this is key, has more

value than the first continuity payment.

That's really all there is to it. So, he

offered this big $600, $800,000 thing if

you sign up for $200 today. The first

example with the the newsletter thing,

he offered this $24,000 thing if you

sign up for a trial of a $400 a month

continuity. So, bonus is adding value.

And so, for products, you can give away

very small things or one big product

that complements the subscription. For

services, you can give away a defined

program, onboarding, setup, or features

that add value to the core service. All

of those things will be things that you

can give away as bonuses for continuity.

Discounts are lowering costs. So,

remember that anything you offer for

free can also be offered as a discount.

Free stuff and discounts both affect how

we make decisions. So, we want to do

both to get the benefits of both. When

making continuity offers, I prefer to

get people to start. If I add more good

stuff, bonuses, and take away bad stuff,

discounts. So, that's how you do it. Add

more good stuff, take away bad stuff,

get more people to buy. Now, to make it

work better, add urgency. Only, they get

that stuff if they join right now. Also,

you can offer the bonus as a standalone

purchase or you can only make it

available if they buy your continuity.

So, either of them work. And I'm going

to show you some really cool math

examples at the end of this video of

price tests we've run to generate more

cash up front or more people taking

continuity. So there's actually some

signs I can show you of like how much

cash do you want up front versus how

many people do you want to take

continuity and then what percentage is

the right percentage to offer so you can

get the right distribution you want. And

we tested this across a lot of location.

So I feel pretty confident about it. So

on their own continuity offers get less

cash now. Remember less cash now. And

that makes it tough for getting

customers profitably. But the way that I

use them, we can still hit our 30-day

profit goals, which I'll explain in a

second. So, first, I do all my big cash

attraction upsell and downell offers.

So, I should already be profitable. I

should already have cash from all those

original offers. Then, continuity offers

get a little bit of cash from the first

month's payments. Then, I offer people

who bought that one month a discount for

prepaying more months. This further

boosts 30-day profits, giving me more

cash to advertise and stacks recurring

revenue. So, think about how that goes.

big attraction offer, buy XY free, win

your money back, whatever. Got it. Then

we do our upsells. Got it. Then we do

our downselles. Got it. Then we get them

into continuity. Really soft pitch. We

got them on continuity. We gave them

some bonuses in order to say yes. Now

that they're on continuity, we already

have the commitment. We then say, "Hey,

you're already committed. Let's just

prepay and save some money. We stack

even more cash forward." And that's how

you just stack, stack, stack, stack,

stack. You frontload the money so that

you can scale your advertising and go to

the moon. All right, let's do some

examples. So physical products, let's

use pet food. All right. So, onetime

bonus. Get every dog toy you've ever

made for free. An $800 value when you

sign up for our monthly food shipments

for $59 a month. Now, monthly bonuses.

You'll also get a new dog toy every

month as a member. Also cool. Then it's

something else that I can give. So,

those are two different kind of bonus

continuity offers that you can have. One

is upfront to get them to buy. The other

is to get them to stay. Now, service

short-term accelerator offer. So,

onetime bonus for the short-term

accelerator. It costs $1,000 on its own.

get it free when you become a member for

$100 a month. Same concept as the gym.

The bonus package is the VIP community

members enjoy first in line access to

our events, longer support hours, as in

longer not longer time period. Uh better

store reps and faster response times. So

if you become a VIP member, not only do

you get this big benefit, you also get

this recurring benefit of continuing to

pay and stay digital product offer. So,

onetime bonus would be uh get all my

past 40 newsletters valued at 15,800

whatever by becoming a member today for

only 3.99 a month after 30-day free

trial. Lifetime discount plus lifetime

bonuses. If you pay today, you can lock

in a lifetime discount for $2.99 a month

and you get early digital access and a

physical copy every month. Now,

important points. Focus on the bonus,

not the membership. This is really

important. Join my membership program

isn't very compelling. not nearly as

compelling as get this free valuable

thing. So, advertise the free valuable

thing, then explain the rest of the

offer once they show interest. So, if

I'm talking about the $800 of dog toys,

I advertise my free $800 of dog toys,

not my dog food. If I'm talking about my

six week challenge, I'm talking about

the six week challenge. They come in, I

explain the $1,000 thing. I say, "Or you

can get that whole thing and this other

thing for less." That's the idea is you

advertise the thing you're going to give

away, not the thing you sell. Bonuses

kind of work like upsells. more of the

same. You get two years of past

newsletters by becoming a member. So,

they're coming in for newsletters. So,

you get more of that thing.

Complimentary. You get nutrition

services for free when you sign up for

one of our fitness memberships. Great.

It's complimentary. It goes together.

You can have an upgrade, which is

better, right? You get a free gold

membership when you buy a bonus

membership. So, it's limited

availability. Keep your bonuses related

to your core offer. Okay? So, this is

key. So, if the bonus that you give is

too different, you will attract the

wrong types of customers. So, for

instance, don't advertise a free t-shirt

to upsell tech services. That wouldn't

make sense. But advertising a free

t-shirt to upsell t-shirt printing makes

sense. If I wanted to offer a free fix

or get out of jail free card for we'll

fix something that's going wrong with

your servers, that might be a great free

bonus that I would give away. That makes

sense to naturally then upsell tech

services. Now, make bonuses things you

already have and do. All right. So, for

instance, the two past years of

newsletters cost no extra time, but are

super high value. And onboarding is

something that you have to do with a

customer or client anyways. So, you

might as well slap a price on it and

give it to them as a bonus. If you value

it, they will too. And so, again, the

whole challenge thing that we created

back in the day, the defined in

programs, which many service providers

offer, they're usually fundamentally

just fancy onboarding. So you can just

make sure that people all go through

this fancy onboarding, but you put a

price associated with it. So then you

get way more people to sign up for your

continuity. All right. So physical

bonuses on digital products and digital

bonuses with physical products. All

right. So if I have a digital

membership, I might offer a hat, a shirt

or tool or something else related to the

offer. Now, if I have a physical product

or service like a boxing gym membership,

offering live streams can get more

people to sign up. Also, if I have a

digital thing, I might offer boxing

gloves that I would give if they buy my

digital membership. So crisscrossing

physical and digital in my opinion works

exceptionally well. So this strategy

often lowers the cost of getting a

customer more than the cost of the

bonus. That's the point. And so even if

someone, you know, takes the bonuses and

then runs, we still typically get a

lower overall cost to car customers in

general and we can still make it up on

everyone else. If it gets too expensive,

maybe shift your offer and then give

that one a try. But more often than not,

adding the bonus will in the long term

net you way more money. Use realistic

bonus pricings. The bigger the value

anchor on your bonus, the more

compelling the offer, but you also have

to make the anchor believable. All

right? Some business owners make up

ridiculous values. Don't do that. It

won't anchor the customer and you'll

lose trust with them. So, this is a

great opportunity to give away products

that you've sold before in the past. So,

then you can anchor on their actual

prices and use real discounts and

bonuses. So, it's like, I used to sell

this for two grand and here's receipts

of me selling this for two grand. Would

you like it for free if you sell it for

200 bucks? A lot of people say yes to

that, but that's ethical and it's real

and it's believable. You can bonus

customers by giving them titles. This is

a little clever. So, you can give

customers titles uh when they stay 3

months or 6 months or 12 months and

beyond. So, things like silver, gold,

diamond, double diamond, etc. And so

they get status in the community and you

can have some little frills and that

that they get some little bonuses that

are associated with those titles. But

the main thing is if they know that in

two months they're going to get this

this upgrade in status that will that

can drag people through the continuity.

And you can typically extend each time

how long before you give them the next

kind of reinforcing event. So in the

beginning maybe once they get to 90 days

if you know most people turn at you know

two months then you put the thing at 3

months or two and a half months right so

that then that pulls poor people through

now once they get to the third month

it's like hey you got this boost in

status you get some other upgrades and

then the next one might be at month

eight right it's like okay so that's

five months later and once at eight then

it's like okay the next one happens in a

year so you can keep bumping out how

long it is just like video games the

first level is really easy second level

is a little bit harder when you go from

level 99 to level 100 it takes you more

time than it took you to get to the

first 20 levels. Same idea. So, a good

friend of mine actually does this and

after a while, she found that her

customers cared more about the title

than any other bonus that she gave. And

she told me that they even introduced

themselves to her by their title. So, if

you can't think of something to give

them, at the very least, you can just

call them something special. And so,

people would come to her and be like,

"Hi, I'm Double Diamond." Or, "Hey, I'm

a gold." Right? It's like, "Hey, if it's

it status is the cheapest thing that you

can give someone." And also many people

value it more than just about anything

else. All right. Uh you can make free

bonuses discounts and make discounts.

Free bonuses. So hear me out. So free

bonus. Become a member for $200 and you

get this $1,000 program as a free bonus.

Steep discount. Get the $1,000 program

for a dollar if you become a member for

$200. So again, the free plus discount

thing. You can make you can interchange

these things. When making a continuity

offer, anchor the bonuses first. Sell

them the benefits of the amazing bonus,

not the continuity offer. the bonus,

then use your highv value bonus as an

anchor. It may shock them, and that's

okay. Remember the anchor upsell? Same

idea. We can still use it as an anchor.

Now, the higher up we go, then the more

it's going to become an anchor and less

likely for them to buy it. The lower it

is, the more people will buy it. And

I'll give you the exact math on that in

a second. Because when you ask, hey, do

you want to know how you can get this

for free? If they do, which they will

explain, hey, just become a VIP member

today and you'll get it all as a free

gift just for joining. Or you can just

buy it on its own for xxx. Which would

you prefer? So someone's doing the math.

They're like, "Shoot, this thing's a

grand or I get the grand thing for free

when I sign up for 200 bucks a month."

Well, basically at month five, I quote

break even, but I still get all the

value of being a member. Well, I'll do

that. Now, if that price was $300 or you

get the $300 thing for free when you do

the $200 membership, you might be like,

I'll just do the $300 thing. So, how big

you price the difference will indicate

how many people take the upfront cash

versus the continuity offer. And so,

more bonuses get more people to join.

That's the TLDDR. So, after you ask them

if they want to know how to get it for

free, you tell them that they can when

they join. Then you say on top of that,

when you become a member, you'll get

amazing thing one, amazing thing two,

amazing thing three, and mention the

individual dollar values of each to

anchor that value. And actually, it

further stacks the value of the $200

thing. And so stacking bonuses this way

gets even more people to join the

continuity. So here's the math example I

told you that was going to break down.

So we ran this test and I can only say

that this works for brickandmortar

fitness sales in this offer structure.

That being said, if I were a betting

man, which I am, I would bet this pretty

much transfers across uh domains,

especially service businesses. Pricing

for continuity versus offering cash. So

for whatever reason, people pick

one-time payments over continuity. even

with higher one-time payments. And to be

fair, I'm kind of this way. So, if

someone says, "Hey, do you want to sign

up for a membership or do you just want

to sign up for one month? One a month is

twice the price." I might be like, "I

don't feel like dealing with the

cancellation. Just like just put me on

the one month thing." And so, offer a

higher one-time payment option. This

way, some customers will make you more

money today while other customers stack

recurring revenue for tomorrow. So, we

change the price depending on our goals.

I've tested this a ton, at least for me,

and the data in this range looks really

clear. So this is basically the take

rates

um based on the price. So this is the

price. So if you're three times the

price, you're going to have almost 90,

you know, 90% of people taking

continuity. If you're, you know, 1.3

times the price, then you're going to

have 50% of people taking continuity and

50% of people taking the onetime offer.

So this is the actual data as it broke

out. So if you want to get 50% of people

to take continuity, then you make the

standalone offer 1.33 times, which in my

personal experience feels about right.

So the example is, hey, this one-time

program is 400 bucks, which would then

equate to 2.66 a month if it was 6 weeks

or 199 a month membership. So I say pay

400 for six weeks or you can become a

member for 199 a month. at that point,

at that price point, 5050 will take the

uh $400 offer versus doing $1.99 a

month, even though this is 1.33 times

more expensive. And so for me, I find

this the most important number because

that tells you the break even price on

the market. So people basically value,

at least in this particular setting when

we tested this, that people value not

being on continuity as a 33% premium

that they're willing to pay on the price

to not have to deal with cancellations

or anything like that. I find that to be

very interesting. So if we want 60% to

choose continuity, we make it 1.66 times

more. If we want 70%, we double it. If

we want 80% to choose continuity, we

2.3x it. If we want 90% of people to

choose continuity, we 2.66. 66 exit. So

basically, once you're at about 3x the

price of what they would have to pay,

almost everybody takes the continuity.

But if you're like, shoot, I would

rather get some of that cash up front

because, you know, these these $600

payments, they add up. It's not bad.

Well, fine. If you have 70% of people

choosing continuity, but 30% takes

something that's twice as expensive.

You're actually getting a decent amount

of cash up front. And so you just need

to play with how much cash do I need so

that I can offset my cost to acquire

customers and then I can stack as much

recurring as I want. And this is the

actual data that we have. The exact

numbers for this matter less than the

principle. The smaller the standalone

price compared to the continuity price,

the more people buy the standalone. The

larger the standalone price, the bonus

price compared to the continuity price,

the more people choose continuity. So if

you want more cash up front, make

bonuses and continuity plus bonuses

separate offers. make the bonus offer

only a single payment. That's 33 to 266%

more expensive than the first month

continuity plus bonus. The bigger the

price difference, the fewer standalone

purchases you'll have, but the more

money you'll make upfront from each of

them. And based on the data that I

shared, people pay 33% more to avoid

continuity. In other words, if you

charge 33% more for the onetime bonus,

half will buy it. If you want even more

cash, offer bulk prepaid discounts. So,

bulk continuity upselles boost 30-day

profits by a lot. All right. And I

alluded to it earlier, but I'm saying it

again because it's so freaking

important. So, you offer buy five

months, get one free. Only one out of

every eight people have to take the

upsell to raise 30-day profits by 50%.

That can make or break your money model.

So, think about that. Only one out of

eight people need to take your buy five,

get one free for you to raise by 50% the

cash that you're making in the first 30

days.

Make the damn offer. Note, the laws of

discounting apply. The larger the

discount, the more people would take it.

So, if I say buy five, get uh get one. I

could also say buy six, get six, and

I'll bet you I get a hell of a lot more

people take it. And I might double or

triple my upfront cash. So, this

actually takes continuity and turns it

into yet another upfront cash play that

you can do to offset acquisition costs

and scale your advertising. If you want

commitments, you can pair the bonus with

a commitment. So, here's an example. So

only allow customers to get the bonus if

they join and commit to 3, six or 12

months. So you get more people to commit

this way, but fewer people will take it,

at least compared to giving it to

everyone else. So I'll say it this way.

So the original version that I showed

you on that chart was, hey, buy the you

can either buy this thing for 500 bucks,

whatever it is, or you can get the $500

thing when you join our membership for

$200 a month. That's with zero

commitment. I could say you can buy this

thing for $500 or if you become a member

and you commit for six months, we'll

give it to you for free. So then I lock

in six months as the sale. I get them to

to say yes to an extended term. So it's

still more money than here than what I

would get that $500. So I basically give

a $500 thing to them to get them to say

that they'll give me $1,200 of

commitment or $2,400 of commitment if I

make it a year. And so you can also if

you want way more people in continuity,

you can just incentivize them to take

continuity. So, that being said, in the

beginning, if you're not sure what to

do, just offer the bonus as standalone

and then have continuity monthtomonth

just to make this easy for you. So,

here's some summary points. Uh, with

continuity bonuses, you give the

customer an awesome thing if they sign

up today. Typically, the bonus itself

has more value than the first continuity

payment. If you use continuity as an

attraction offer, advertise what you

give away, not what you sell as

continuity. Advertise the bonus, not the

membership. Make your bonus related to

your core offer so you engage the right

leads. If I say, you know, I'm giving

away dog toys. I want to sell dog stuff.

You don't want to give away t-shirts to

sell tech services. If possible, make

your bonuses stuff you already have and

do. This way, you don't need to change

your business in order to accommodate

the bonus. More people start conduity if

you add more bonuses and take away uh

more bad stuff. In other words, add more

discounts. To add bonuses, add more good

stuff only if they sign up. To discount,

take away the cost of actual products,

services, or features that you normally

sell. Sell the value of the bonus before

telling them how they can get it for

free. This is super important. People

mess this one up. You have to really you

have to you have to sell it as though

it's a standalone offer. It's just like

the anchor. If you don't seriously sell

it, people won't seriously consider it.

They have to seriously consider it and

then they will be incentivized when you

say, "Now that you're sold on it, do you

want to know how you can get it for

free?" Now they're going to want to take

the continuity. Offer bonuses as

standalone option for more offering

cash. So you can sell them on the bonus

and then just say, "Cool. The only way

to get that is if you sign up as a

member, you can do that. Totally up to

you. Um, but if you want to have some

upfront cash, which a lot of people do,

especially if you're advertising. This

is especially important for small

businesses and local, then allow allow

them to buy the standalone offer. And

you just price it based on how much cash

you need. If you want half the people to

take the standalone offer, price it at

33% above. And to boost up cash even

more, you can offer anybody who signs up

for continuity to prepay for the next

six months or the next year if they buy

in bulk. basically do a buy X get Y free

as your upsell on the back of continuity

and you're like wait a second yes you

can move the offers around in terms of

order. This is where it gets fun and

that my friends is how continuity

bonuses work.

All right, so that was continuity bonus.

Let's talk about continuity discounts.

So super common in the continuity world

and there's a I don't say right and

wrong way but there's at least a way

that I like to do them versus how

everyone else does them. So this is my

little visual. Look, you get this free

time if you do this commitment. Get XY

free with Y commitment. Very simple. All

right. But there are cool a bunch of

very cool things that I've done because

I've been in the contract world for a

lot of my life. And so there's some neat

stuff that I can show you. So, um this

is less how I learned it, but one of my

favorite stories. Young neighbor of mine

when I moved into our neighborhood in

Austin. Um he had exited a waste

management company, so trash. And uh you

know I walked outside, I meet the guy,

he seems totally salt of the earth.

Awesome dude. And so I was like, "Tell

me your story like how this all

happened." He's like, "Oh dude, I maxed

out my credit cards for an entire year.

My I asked my whole family for money.

None of them gave me any money. I maxed

out everything I had." Um and what I did

was I just went to all the big, you

know, apartment buildings and I said,

"I'll give you a year of service for

free if you switch over to me if you

sign a 5-year agreement." So basically a

six-year agreement, one year free, and

then five years on the back. So he was

able to do that and he got all these big

apartment builds over. But it also meant

that he had to deliver services for a

year before getting paid. So talk about

like very tough cash flow cycle, but he

was able to do it. And then as a result,

he was able to eat up a ton of market

share and they ended up selling to a

national conglomerate and making a ton

of money for it. And so he had this like

big Ferrari in his driveway and was just

like a normal dude and it was he was a

really cool guy. Um and so that's

fundamentally what he did. So, this was

a discount continuity play. It says

bonus. It should say it should say

discount. There we go. So, here's the

description. Here's how it works. So,

you make a onetime continuity discount.

You give products or services away for

free if the customer commits to buying

more products and services over time.

Makes sense. So, this can attract loads

of potential customers and makes a very

easy sale that anyone can close. If you

look around, you see this offer in many

different industries. So, think

internet, pool cleaning, gym

memberships, landscaping, anything

that's rentable, storage, leases, get

your first two months free if you sign

up for a year, things like that. You can

make this work in any business as long

as you know two things. Number one is

first how you will apply the discount.

You can do it in four ways and I'll show

you all four. Second, your cancellation

policy because a lot of people don't

always keep their commitments. So, let

me give you some examples. So, this is

the first way that you can do a

continuity discount. So upfront you can

apply the discount upfront and push out

the term as in the official time starts

after the free time ends. So in the

story that I gave, he gave a year for

free and then he had 5 years on the

back. So he basically gave 20% away.

Here 3 months free, 12 months on the

back. Now this works best in industries

that have successful histories of

reinforcing contracts. So cell phone

carriers can do that because they'll cut

off your cell phone stuff. Storage works

well with this because they'll they have

your stuff. Real estate works well

because they'll kick you out. Cars work

well because they can take your car

back, right? Anything that has

collateral tends to work really well

with this type of model, which is why a

lot of them do it. All right. Now, if

you have historically high churn, then

skip this one because it means that you

don't have a lot of enforcement, and

this is probably not the best way to do

it. Now, this does not get customers

profitably. All right? So, he lost a

bunch of money for the first year and

then he made a bunch afterwards, but it

does get customers. It delays cash. So,

if you want more profitable options,

continue on down our list. A fun note

here is that instead of giving time away

for free, you can also give it away at a

discount, right? So that you can protect

the upfront cash flow. So that same

concept of I'll give you one year free,

he could then say I will spread it over

five years and decrease it the same way

as we did with the rollover credit. Just

apply it as a front-end offer. Also,

I'll give you a pro tip on this this

guy. So if you are going to do an

upfront deal, let's say that you say

when you sign up for a year-long

commitment, I'll give you three months

free. make sure that you get 12 months

on the back. You don't make this three

plus nine. So, I see that a lot of times

people mess that up. So, you're gonna

massively decrease your contract by

basically you're saying you're you're

you're overcoming the hardness of a

one-year sale, but you're not getting

the full one-year sale in the back. So,

you want to get the three. So, this is

technically a 15-month agreement. The

first month, first three are free. Next

12 are paid. What people mess up is they

do three months and then nine. So, they

have a one-year agreement. So, little

pro tip. So, the second one is at the

end. I love this one. So, you can apply

the entire discount at the end and you

push out the term so long as they make

the payments on time. And I love this

because it also encourages adherence to

payment schedules and they get a bonus

time equal to the value of the discount.

So, here we say great, I'll give you

three months free after you sign up for

the year and you pay for the whole year.

So, I'll give you your three months for

free, but you have to pay all 12 on

time. So, I can still attract customers

saying three free months when you sign

up for a year and I just say great, you

get it at the end. I explain the terms

they earn their free time which is why I

like this so much and it encourages good

behavior. The third way you can do this

is you can spread it over time. All

right. And so the spread over time is

you apply a discount across the term.

This is what I was kind of referencing

earlier but I have enough a nice pretty

visual here. So for him if we said okay

we give you your uh your three months or

whatever it is uh free or four months

free. Then we just divide everything. We

basically take 25% off the uh the

payment schedule. So three months free

for a year at $200 per month. you've

discounted by $600 by spreading that

$600 over 12 months. $650 per month,

right? We've already went over this one,

but you can still again, you use that

$600 credit as the thing you advertise.

Now, that's the difference here. So, you

advertise what you would roll over

eventually as your front-end offer. So,

you say that $600, I'm going to give you

$600 of credit. I'm going to give you

three months free. Remember the same

thing, you can do three months free. You

can say the amount off. You can say the

absolute amount $600. All of those are

different variations. You advertise. You

say you get that free when they come in.

and you say, "Great, I'll spread it over

the term." Now, after the term finishes,

it goes back to full price. This is

after the first one or two payments. So,

I'll explain how this works. So, this

one is probably like best of both worlds

kind of thing. If you sell, you know, uh

12-month commitment and then they get

the three months afterwards, some people

are going to be like, "Uh, okay. I mean,

I was hoping I'd get it up front, but

fine, I get it." Now, the people who

sign up for that will be great

customers, but this is kind of what I

would consider the midline, the middle

line, somewhere in between. So you can

get one or two payments up front, then

you give the free duration, then you get

the contract commitment that begins

after that. That's kind of a little bit

of the best of both worlds because here

you get to liquidate the cost of

acquisition. So the way that I like to

position this is you get the free time

up front, but you have to pay first and

last. So that gives me two months that I

can get upfront so I can offset

acquisition costs, pay commissions, and

then they get their free time, but

they've still paid for two months. So I

have some skin in the game before get

their free contracted period. All right.

So, they pay a few times, then they get

their onetime discount. The way you

collect a bit of cash to cover the

acquisition cost and some delivery

costs. I prefer to do it by presenting

it as first and last month or last month

upfront or adding something like a

onetime fee. So, it's like, yep, you

absolutely will get the the three

months. We do have an onboarding fee or

we do have a setup fee that you have to

pay, but you'll still get the three

months immediately and then the the

payments will kick in. So, all three of

these are variations. You could also do

last month plus a fee. You can do first

and last plus a fee. It's totally up to

you, but these are all variations that

allow you to advertise huge chunks of

time and still monetize acquisition. It

also makes sure that the whatever

payment method they give you actually

goes through. And so, sounds like a

small thing, but actually pretty

material. All right, so here are some

additional examples. You've seen real

estate two months free lease when you

sign a 12 months lease. Uh storage free

month, which we know 127. It's not

really a free month uh with a 12-month

commitment. Gym two months free with

12-month whatever. Uh cleaners, three

free cleanings with six-month contract.

massage, two months of massage, two

times a month. You proate the free

discounts over the duration, so they

still pay upfront, which is just like

the rollover upsell except with cash.

All right, so those are all examples

that you can use. Now, important points.

Display $1,000 per month with three free

months in four ways. What is free? The

three free months, the absolute amount

off, $3,000 off, percentage off, 25%

off. Comparison, we'll discount your

mortgage. So, don't eat into the term

with the discounts, extend them. So,

this is what I was referencing earlier.

So, you don't want to do nine then

three. You want to do 12 then three if

you're getting the the one-year. That's

all this is. That's the main point. Now,

sounds small, but it's 33% more money.

So, don't mess that up. Highest value

per word this entire presentation.

Number one, you want to bill on weekly,

every two weeks, every four weeks, or

every 12 weeks, etc. The reason for this

is fundamentally that people

misunderstand that there are four weeks,

technically 4.3 weeks per month. And so,

if you bill on four week cycles, there's

13 billing cycles in a year, which means

you get one full month of revenue for

free. And so if you look at your monthly

recurring revenue, if you would like to

put that in your pocket this month, for

example, you can guarantee that you put

it in your pocket by just changing your

billing from monthly to every four

weeks. Now, some people say, "Hey, well,

you said weekly." It's more that there's

you can present the prices weekly, but

you still bill on a four-week cadence

because I found this out the hard way.

If you bill weekly, you get a bunch of

financial pain in the butts of people

changing cards and like, "Hey, can I

pause for one week?" Pain in the butt.

So presented as whatever, call it 50

bucks a week, but you bill at $200 every

four weeks. All right, just to be clear.

So this is fundamentally how it works.

That gives you 8.3 8.3% more revenue. So

that may not sound like much, but if you

run a a 20% profit business, if you go

from 20 to 28%, it's going to make you a

lot more money. That's almost a 50%

increase in revenue. So I think there it

is, 41%. Right? Kind of nifty. And the

best part is you don't do any more work.

You just change a few words in your

contract and how you present the price.

That's it. In my experience, I've never

had any difference in take rates between

every four weeks versus every month, but

you make a lot more money. So, you're

welcome. 3% more revenue for four extra

words. Yeah, it's X plus a 3% processing

fee. Now, I've never had anyone not buy

because of processing. The 3% added to

your top line for no extra work goes

straight to your bottom line. If you run

a 10% profit business and add 3%, you

just added 30% to your profit. pretty

worth it. And this works especially well

when paired with the get two forms of

payment. Recurring businesses lose

mounts of cash because payment

processing problems. So basically

people's card goes, you know, their

numbers change, they they move states,

there's some guy in Nigeria who tries to

bill them, whatever, right? They've got

something and they have to change their

card. And so first, customers don't

cancel, but their payment information

changes or expires. Second, customers

max out cards or have insufficient

funds. Fix both issues with the same

solution. And so what we do is we say,

"Hey, now that I told you about this 3%

fee, remember kind of the rental car

like, "Hey, there's this fee. You want

to avoid this fee that I made up

anyways?" Yeah, that's what we're going

to do. So if you want to avoid that 3%

fee, do you want to save some

processing? Awesome. So just give us a

second form of payment in case anything

happens to the first one. If they ask

why, which they rarely do, just say, "We

only have the processing fee because it

cost us money to get new forms of

payment every time something changes. In

this crazy world, people's cards are

changing all the time. So, we pass those

savings on to you. So, now I'm

positioning this as a benefit to them.

I'm passing the savings on to you, even

though I made up these fees to begin

with, right? And that's how it works.

And just like that, you give up the 3%

increase in revenue to have a decrease

in churn. And oftentimes, if your churn

decreases by call it 20% because of the

involuntary churn, you more than make up

the 3% in revenue. Now, there's a third

little payment hack for you, which is

you can get a if you can. So, a is

something called automated clearing

house, which basically how how banks pay

one another. And so, if you can get a

second form of payment, try to get AC.

So, this links directly to their bank

and it's the cheapest way to transact

besides cash. So, if you don't know what

a is, you can Google it. But

fundamentally, wherever you process

money, they usually have an a option.

And think about it like this. How many

times have you changed your checking

account or your bank in the last five

years? Probably not nearly as often as

you've gotten new credit cards, right?

And the same thing applies for your

customers. And so if you get this as the

second form of payment, this thing's

gold. It pretty much never declines

because it really can't. They either

have the money or they don't. And so

this way I like having two forms of

payment. One's a card, one's a we get

the AC by giving back the processing

fee. And here's a fun little benefit of

a not only do you get the reduction in

churn, you also save some money on

processing, too, because it's cheaper to

process via a usually by one or two

percentage points. So, gift cards. So,

you can give the discount on time in the

form of a physical gift card. You can

mail it to them if they are out of the

area. So, if they're, you know, if

you're a national business, you can mail

it to them. Uh, the customer can apply

the discount whenever they want after

their first three payments, right?

Right? So you can say, "Hey, when you

buy, we're going to give you these three

months free, but I'm going to give it to

you the to you in the form of this card,

and I'm going to mail it to you, and

then you have to remember to come back

and redeem it." Now, you might be like,

"Alex, well, deal with it. You can do

whatever you want." Okay? And so then

that way they can also, if you want to

position to make it sound good, uh they

can gift it to a friend if they want.

All right? That way it's like, "Hey,

gift it to a friend." And beyond that,

many people simply forget to use it. And

in that instance, you just get the full

price sign up. All right? So, in the

quote worst case scenario for the

business owner, they get it and then

they redeem it after a certain period of

time. So, you still got payments and you

made sure the card worked and they were

a legit person. The second condition is

they give it to somebody else which is

awesome. I'll absolutely accept their

friend which is now a free customer that

I don't have to pay for and I will give

them that three months in some sort of

aggressive way. I might spread it over

the term, might use one of the other

ways or they just don't use it in which

case we got the full the full price sign

up. So you can use the discount that you

want in the form of a gift card, which

is basically the same as a rebate. So

this is a fun one. So try lifetime

discounts at your most common churn

point. So you advertise lifetime

discount, but you make customers earn

it. So they get a lower rate if they

stay past Y or X period. And you make

the Y or X period the month that the

average customer drops off. So the first

time I saw this was on Amazon. Um they

had a continuity for rice packets. I buy

rice and uh they had 5% off if you go in

continuity and 15% off if you stay past

five months and so this is the idea is

that you want to and it was 5 months to

the same address like they're pretty

particular about it but you can get a

lifetime discount and if they know and

I'm sure they did the math that they

knew that people would stop paying at

call it the fourmonth point and so they

say okay well let's put a big nugget

after the four-month point where they

get a lifetime lower rate after that

point and so you can think through your

own business the same way and hang the

carrot. And you can also use this in the

advertising. So let's say you know every

customer stays four months on average.

You tell everyone upfront they get a

lifetime discount after month four. So a

lot of times people are willing to pay

more upfront if they know it's

eventually going to go down. But this

does two things. One is it gets people

to buy at higher rates than they

otherwise would because they know it's

going to go down. And two, it gets them

to stay longer because they know when

it's going to go down. So as the time

approaches, tell them the new or low

rate is right around the corner. This is

key. So, if you do know that it's at

month four, month five or whatever that

they're going to start getting a lower

rate, at month two, at month three, be

like, "Hey, two months left. Hey, one

month left." Remind them the fact that

they're earning that discount soon and

it'll basically continue to incentivize

them to stay and pay. Okay? So, I said

you have to have two things. One is

knowing how you're going to apply the

free time or the discount. And the

second was cancellations. So, there's

four ways that I like to approach

cancellations. So, if someone cancels

during a trial, so you can say you're

allowed to cancel during the trial. Now

if you do that it'll increase sales

because then people are like okay well

this is easy this is no risk but uh

you'll decrease stick rate meaning the

number of people who will stay on the

back end. The other version of this is

that you can have zero cancellations and

say there are no cancellations allowed

which works with good customers but it

will decrease sales and increase stick.

Sometimes though I mean for example

Netflix and some of these other massive

companies they don't even try that

because they have customers that are

uninforceable. And so if you're going to

have zero cancellations make sure it's

with good customers. If you do zero

cancellation policy on bad customers,

you will decrease sales, but you will

not increase stick. So, you'll just get

the cost but not the benefit. Another

way of doing this is a pro-rated fee

based on savings acrewed. That just

sounds like fancy terms, but basically,

if they cancel uh you know a month six

and got two months free, you just build

them the difference of what they saved

over that six months. And this one is

probably the simplest way of doing it,

which is you just have a onetime breakup

fee. So you have an outlaw out out

clause. It increases stick. It increases

sales and you get money on the way out.

And you can also use it as a negotiating

chip to figure out something else. I

like this one because it's the easiest

to explain. It's very simple. And I like

the negotiating chip personally. So the

way this would look would be, hey, um,

listen, you can like you have a 12-month

agreement. If you want to get out of the

agreement, it cost you two months.

That's it. So it's very straightforward.

So if you cancel at month one or month

11, it doesn't really matter. It's two

months breakup fee. Now, when they come

to break up, you set it up front, they

initial next to it, you say, "Hey, this

two-month breakup fee." What was the

issue? And then you can try and leverage

that, wave the fee, get a get a review,

get a referral, get them to upsell, all

these other things. Okay, cancellations.

You need to have a cancellation policy

figured out ahead of time. There are

many common ones. 30 days or 60 days

notice, cancellation fees, cancel any

time, etc. Since everyone comes into my

continuity offers on a discount of some

kind, this is my favorite. Just make the

cancellation fee equal to the discount

that they agreed to get. So if they got

$600 in discount by committing, they can

pay $600 whenever they want to cancel.

This is very simple to explain, right?

So if they got three months free, then

you just got to pay for three months at

any time if you want to break early. I

like this. Everyone gets it. Now, make

sure customers know how to cancel. This

sounds obvious, but it's one of the

first things you should do. This is my

recipe for preventing one-star reviews

is tell them exactly how to cancel. So,

if customers have nowhere to complain

inside your business, they will

definitely complain outside your

business. So, try to get them to

complain to you rather than to everyone

else. Now, if you have no obvious way

for them to cancel, more people will

vanish and complain. By having a clear

way for them to cancel, then you can at

least talk to them and have a real

chance to save them. Now, I want to be

very clear. Small businesses do not get

rich by making stuff hard for their

customers. If you make it easy, you'll

suffer less and get fewer one-star

reviews and have a chance to save them

when they do because you'll actually

know about it. So, try to make it easy

for them to contact you when they want

to cancel or they want to let you know

about a change and stuff. Don't make it

hard. Like, you will lose more money. I

promise you. If a customer wants to

cancel, ask to do it in an exit

interview. I like this. Some people like

to vent. Let them remember the angry

boat. So, get more angry about the

problem than them. And they may try to

calm you down. And as soon as they try

to calm you down, then you have one. So

sometimes they'll just save themselves.

Like actually wasn't that big of a deal.

They're like, "Cool." Well, I think it's

a huge deal, right? You want to have

that happen. So if they complain about

something you can solve, then by golly,

solve it. All right? And if they want a

better product, do a rollover upsell

into a higher level of service if you

have one to offer. I've had many people

buy a lower cost offer and then complain

because they wanted higher cost

features. So then I offer the higher

cost features and then they buy. Yes, it

happens and yes, it works. So use

cancellation fees to the customer's

advantage. So, I might say, "Hey, I'll

wave your cancellation fee if you come

in and tell me what I could do better."

This gives the customer a real reason to

give feedback, which by the way makes us

better. Then I can use their feedback,

fix the product, or offer something

better suited for them so I can make

more money. At the very least, they'll

have nicer things to say about the

business if I actually try and solve the

problem. Now, this isn't the classic uh

you have to cancel in person. That's not

how you say it. That just makes it a

pain in the butt. So, you say, "I have

this cancellation fee. we can charge it

or if you're willing to at least sit

down and tell me what we could do

better, I'll wave it for you. That is

now friendly. It's like fee or feedback,

your choice. And when you have the

feedback, it's you really want to have a

dialogue with them. It's not you don't

want to go straight to a sales pitch.

That's not going to work. You want to

tell you want to let them vent. You want

to feel have them feel validated. You

want to be more upset than them. You

want to have them calm you down. You say

that you made the mistake and that's

unacceptable. Ask them to see if you can

make it up to them. Then you do a

rollover and you get a doover. That's

the idea. Those are the important

points. All right. Summary. So,

continuity discounts give continuity

time for free if customers sign up

today. Front-loaded discounts convert

more customers, but they have higher

churn. Backloading discounts convert

fewer customers, but they have lower

churn. Spreading the discount keeps cash

flow while providing the full discount,

which is one of the reasons I like it a

lot. Use gift cards to give the discount

to new customers and allow them to gift

it to a friend or use it on themselves

at a later date. you get the full price

sign up and you get a referral or you

get somebody that's going to use it

later. Both of those things are good.

Allow customers to earn a lifetime

discount on your month of greatest turn

and let them know throughout the time as

they get closer to it that that discount

is around the corner. Light cancellation

terms get more people to sign up but

more people leave. Higher cancellation

terms get fewer signups but more people

stay. I prefer to let people cancel and

have to pay the difference between what

they saved and what they would have paid

if they didn't get the discount if they

cancel early. Make sure customers

understand how to cancel and understand

how to contact you. If a customer wants

to cancel, ask for an exit interview.

Incentivize them by saying that you will

wave the cancellation fee, which gives

them a real reason to do it, so that

they can either choose fee or feedback.

And the goal is to make more money, not

give more stuff away. And that is how we

structure this stuff.

Kaboom continuity discount.

All right, so we just covered continuity

bonuses and continuity discounts. Now we

go to a special continuity offer that I

really like a lot and it's the other two

are kind of like big amorphous versions.

This is a very specific play. It'll be

the shortest of the three, but for many

of you people who have services or

anything that's on continuity,

especially if you have onboarding or

some sort of getting clients results

quickly, this thing is a beast. All

right, so here's how I learned it. So,

after a long career in business, a

friend of mine entered uh the consulting

space with the intention of creating a

lifestyle business. So, he said, "Hey, I

just rather make 5 million bucks a year

with no employees and then have some big

company." Um, and he said, "You know, I

don't really lose anyone, so I don't

really need to market." And I was like,

"That's really interesting." A weird

thing to say. I was like, "So, I assume

I'm like, "All right, so you just

collect payments up front." Whenever

somebody says, "Oh, I don't have any

churn." I usually just assume, "Well,

you have no churn if you only have

prepayments." He said, "No, I've got

mostly payment plans." I was like, "Huh?

How do you do that?" He said, "Well,

once you hear it, you're going to kick

yourself for not doing this all along."

I was like, "All right, so what do you

do?" He said, "I just say that you could

pay $25,000 to start and then go month a

month after that for $4,000 a month, or

you can go to $4,000 a month if you

commit to the year." So, just about

everyone takes the year. Then I just

have them initial on their contract that

they understand that if they exit early,

they have to cover a $25,000 onboarding

fee. So if someone calls to quit, I just

say, "Oh yeah, no worries. Just why over

the onboarding fee and I'll get you

canceled right away." And that usually

keeps people in it. It also gets people

the through the emotional ups and downs

of business. I was like, "That's pretty

sweet." So if you look at this visual

here, if you had a 1,00, you know,

$1,000 a month continuity plan, right?

You could say, "Cool. this is 5,000 down

then,000 bucks monthtomonth or I will

wave the $5,000 fee and it will be free

with a 12-month commitment at $1,000 a

month and you pay that if you want to

cancel early. So, this is fundamentally

a neat cancellation term. Fundamentally,

it's what it is. But because we pair it

as a price on the front end, it becomes

a very strong sales thing, too. So with

the other version, we use the three

months free or whatever to get someone

in. And then we say, "Cool, you have to

pay the difference if you cancel early."

Here, we sell them on the vacation and

we say, "We have this massive onboarding

fee, but I'll wave it if you sign up for

a commitment." Then that also hangs as a

knife. If they don't want to pay it

today, they're not going to pay it six

months either. And so the same reason

they signed up is the same reason

they'll keep paying. Here's our

description. So the wave fee offers work

like this. First, you ask customers to

pay a starter fee as a part of joining a

month-to-month program. Typically, you

want to do that to three to five times

the monthly rate. All right? So, if it

was a $1,000 thing, you'd want it to be

a $5,000 uh front fee. For, you know,

the example it was $4,000 a month and

$25,000 sign up fee. That's the idea.

All right? Then you offer a discount the

entire fee if they commit to the longer

term. And the commitment period should

be minimum of six months, ideally 12

plus. If it's less than that, it doesn't

really make any sense. So, if they

cancel inside the term, they pay the

fee. Customers can choose to pay the big

fee and keep the option acquitted at any

time or they can commit to 12 months and

get the fee waved and many will commit

to avoid the big fee. There's also a

clear point after four, five, six months

where if they paid the fee, it's the

same as staying in which case it

basically gets them through that initial

turn point and then after that there's

no financial reason to leave the back

half of the contract. So we take the

greater risk if they pay monthtomonth

but they take a greater risk if they

commit. And so if a customer chooses

month-to-month, we lower our risk with

the startup fee. But we lower their risk

year-toear by waving those fees. And if

they commit and they want to quit early,

then okay, they pay the fee as though

they had paid month-to-month from the

beginning. Very simple. Bottom line is

that customers will stay longer if

leaving costs more than staying. And to

make this equitable, if they stay the

full term, they can cancel if they

choose with no fee. That's what makes it

fair to both parties. So, if you need to

feel better about yourself for charging

these things, uh whether real or madeup,

you should get that looked at. But if

you need a reason why, well, here's a

perfectly reasonable, also madeup reason

for you. You can say this. Whenever we

onboard a new customer, it always takes

more resources than an existing customer

who's been with us for multiple months.

So, in order to give you the best

experience, we charge a onetime

onboarding fee, setup, activation,

engagement, enrollment, whatever madeup

thing you want to say to give you the

experience, that experience, so you'll

never have to bid again. and it's for

your own benefit so you get the most out

of your experience. Now, we know that if

you learn how to use our services the

right way, you'll be 23.7x times more

successful. So, you can say initiation,

onboarding, enrollment, startup, setup,

processing, activation, build,

commencement. You can just use whatever

word you want, then put the word fee

afterwards and that's what it can be.

So, that is our description. Let me give

you some examples. So, we'll use all

combinations, but we'll assume $5,000

onboarding fee and $1,000 a month for

all of them. Okay? So, wave fee with

commitment. This is my personal

favorite. It's clean and simple.

Commitment's 12 months. Monthly rates

$1,000 a month. Fees $5,000 if they pay

monthtomonth. Option A, pay onetime 5

grand plus $1,000 for the first month.

Then pay $1,000 a month thereafter.

Cancel whenever you want. Option B, wave

the $5,000 if you commit to 12. Pay

$1,000 per month. Only pay the $5,000

fee if you break your commitment early.

Boom. Very simple, very straightforward.

There's the visual. If you want, you can

do a different version of this where you

keep uh the month-to-month rate higher.

So if they cancel the discounted

commitment, you build the difference.

All right? So let's say uh they

basically the longer they stay, the

bigger the cancellation rate. So if

they've acrewed, you know, uh $177 of

savings or $67 of savings every single

month on their commitment, the day they

want to they want to break the contract,

they pay the difference in savings up to

that point. Now, let's do some important

points. So four variables for this

method. You've got the commitment

length, you've got the commitment rate,

you've got the month-to-month rate, and

you've got the fee that they're going to

waver or not. There are more versions of

this beyond the two that I shared. You

can figure them out on your own. Now, I

had a earlier version of this. It had

like nine different versions, and my

editor was like, "You're honestly just

going to confuse people, so don't do

that." So, fundamentally though, you can

mix and match these however you want.

You can have a like the rate difference

between the people who commit can be

less. You can have uh the length be a

variable. Uh the rate that you charge

monthtomonth is different, the fee that

you wave. So all of those things kind of

go into this deal structure. The

recommendation that I have is a model

that works which is take the price

multiply by five make that the fee wave

it and that holds that basically hangs

over the head the whole time. And if you

want again the ethical reason for this

is that many businesses and many

services have emotional ups and downs.

They're volatility for customers. And so

having something kind of like guardrails

to keep someone on point during the

rough months can help them overall see

success. And I believe that. So that's

not just not that's not just word

smithing. That's true. Um and this

vehicle or pricing structure money model

allows you to build incentives around

that. All right. So fees get them to

start. People get value out of

committing immediately because they

avoid a fee. People want to avoid fees.

So more people sign up to continuity.

Mission accomplished. Hooray. That's how

this works. Fees also get them to stick

which is lovely. So people will stick

for the same reason they started by

sticking to avoid the fee. So people

quit for millions of reasons, but by

incurring an additional cost, a larger

fee in order to cancel, their original

reason for quitting immediately shrinks

compared to the value of avoiding the

fee. In English, if the cost to quit

exceeds the cost to stay, they will

probably stay. Presenting the fee,

justify the fee by explaining the cost

of taking on your customers for

longerterm programs. Basically, if they

want short-term flexibility, they pay

their own setup costs. If they commit to

staying longterm, we'll pay their setup

costs for them. Right? If someone asks

for additional reason, just say, "It

costs us money to get you started. If

you only want to test us out, you cover

those costs. If you commit to longer,

I'll cover them." Now, if more than 5%

of people want to cancel early, look

into that. Pricing incentivizes

sticking, but it can't and shouldn't

overcome a terrible product. You want to

nudge them, not handcuff people into

paying for something they hate, because

then they'll just hate you. Now, if you

want more upfront cash, have a smaller

fee. A smaller fee encourages more

people to go monthtomonth. This is the

same uh difference we had with the

earlier version with the continuity

bonus offer. Same idea except this is

just a fee rather than a program, but

some people will pay and I'll tell you

what my guess would be to get 50/50 just

to sign up, which would be a 33%

increase. Uh a smaller fee will get more

people to go month-to-month. A larger

fee will encourage more people to make

the commitment. But if you need more

cash up front, then you can make the fee

one and a half to three times the

monthly rate, and that will get more

people to choose that more flexible

option. And when you do this, more

people will take it. Great. and you get

more cash up front. So, you can drop the

fee after the customer fulfills the

commitment, right? So, if someone stays

the entirety of the commitment, and I'm

repeating this because some people

forget about this, and then wants to

cancel, then they have honored their

commitment, and then you need to honor

the fact that they don't need to pay

that fee anymore. That is what makes it

equitable. That's what makes it fair.

Okay? So, I prefer this offer for

commitments over one year and longer.

All right? So, the longer the

commitment, the better this works. This

works especially well with services that

take a long time to work. So, think

about SEO, investing, weight loss. These

are all things that take a long time for

someone to really get closer to their

goals. It keeps people committed when

they get emotional. Cancellation fees

for a cause. So, this is like a 2011

version of this. Um, but if you want to

keep customers extra motivated, you can

donate the money that they would be

paying for a cause that they are

against. So, you just say, "Hey, what

cause do you absolutely hate?" Great. If

you cancel early, I will be donating

your entire setup fee to them. So, this

gives them two reasons to stay. First,

because they don't want to shell out the

cash. Second, because they don't want to

c they don't want to give it to a cause

they hate. Summary. So, wave fee offers

present a month-to-month option with a

fee or a wave fee if they commit. I

typically make it three to five times my

monthly rate. At minimum, the commitment

should be a year. The larger your fee,

the more buyers will opt for commitment.

The smaller fee, the more people will do

the month-to-month option, which will

give you more cash up front. If the

customer meets the commitment, the fee

officially goes away. Boom. That is the

wave fee offer.

So, we just finished all of the

continuity offers, continuity bonuses,

continuity discounts, and the Wii fee

offer, which leads us to making your

money model. So, it is now your turn.

Remember, there's document, demonstrate,

duplicate. This is where I turn it over

to you where you need to combine these

things in such a way that you can

maximize the amount of money that you

make in the first 30 days so you can

profitably acquire customers and scale.

So, let's do a quick putting it all

together. So, overview, a money model,

traction offer, upsells, down cells,

continuity. We have covered all four. If

you are starting out, just pick one of

the money models to inspire you to do

something in your business. All right?

If you're more advanced, you can start

weaving two together. There are no rules

for this. You can stack these. So, you

absolutely can do an attraction offer

that you use as an upsell offer in your

business. You can use a continuity offer

on the front to attract customers. All

of these things are possible. I try to

present them in this way in the most

logical format that I have tended to use

them in my business. But there are no

rules in business as long as it is

legal. So I leave that to you. All

right, examples. So this is my fitness

offer. So I tried to conceptualize this

for you. So okay, on the front end I ran

a win your money back offer. Then we

would upsell from a service perspective

for anybody who bought that. We'd upsell

buy X get Y free. So this would be them

prepaying time. And then we would upsell

the continuity bonus. Great. So that

would be the rollover upsell. Now, if

someone uh didn't want to do win your

money back, then we would downell the

free trial with penalty and then we

would use the menu upsell in terms of

supplements and then we'd do the

rollover upsell on the back end. And so

this was fundamentally the money model.

So I used one, two, three, four, five of

the offers that I talked about to make

the money model that we had for fitness.

This model was superior to other models

on the market, which is why our gyms

consistently out compete other gyms in

the marketplace. All right. So, this is

Jim Launch's model. So, we used a decoy

offer. That was the strategy call. That

was the uh you could also consider it a

free with consumption uh depending on

how you want to see it. But we had that

offer. Then we did a classic upsell.

Then we did the money menu upsell on the

back end into what level of service they

wanted for the extended period of time.

Did you want these other services that

went with uh gym launch or sorry, gym

legacy, which was the back end that we

had. So, some people opted for the

highest version. Some people said, you

know, I don't need like agency services.

I just want the ads. like you don't have

to run them. Hey, uh but I do want you

to uh train my sales team. And so we

would basically menu upsell the features

that we thought would be best for them.

Now, if people didn't take the offer, we

had uh payment plan, feature downell,

free trial, right? And so this so this

is 1 2 3 4 5 six of the structures that

I went over for this presentation is

what created the gym launch money model.

Now, uh newsletter and consulting. So I

just love this money model. It's just

like one of my favorite ones uh cuz I

mentioned it uh during this video uh

training a couple times, but this was an

attraction offer which is a free trial.

You're like, "Wait, how can I use a free

trial as an attraction offer?" Yes,

there are no rules. So, we used a free

trial as the attraction offer. The thing

that made it cash flow was the pay less

now, pay more later option of saying,

"Hey, we'll get you the past

newsletters." And technically, this was

combined with a lifetime lower rate. So,

this is a continuity discount and a pay

less, pay less now, pay more later put

together as one. This was the thing that

got them to engage. So, free trial

start$3.99 a month. Oh, wait. Let me

give you two years of newsletters today

and give you this discount if you choose

to skip your trial. And then, of course,

the uh the backend on that one was uh

the business, you know, upsold

consulting and things like that. If it

were me, this is just that that

particular business. If it were me, I

would do buy X got Y free here. So, now

that I've got the continuity, I would

then say, great. Now that you're in

continuity, if you buy seven, I'll give

you five and then I can frontload even

more cash. Now, if if I know that people

stay on average two years, then I

wouldn't do that because that would lose

me money. But if people say, let's say

on average another three months, then it

makes sense to do buy six, get six

because I still double LTV and get that

cash up front.

So, these were actually my original

notes. So, I I wanted to show you how

mine actually looked. Um, and I've

changed some of the names uh to make

them a little bit more like friendly. uh

but this is actually what it looked like

in terms of how I would design uh the

money models. And so the possibilities

really are endless. So let's go through

steps for making your own. So step one

is you start with an attraction offer.

Always starts with getting people to

engage, getting leads to engage with

you. Step two is you pick an upsell

offer. You figure out, okay, the people

have come in. They're coming off win

your money back. They're coming on uh

buy XQY free. They're coming on uh decoy

offer. Whatever it is, they're coming on

the front end. You say, great, now I'm

either going to do a menu upsell. I'm

going to do an anchor anchor upsell. I'm

going to do a rollover upsell. All of

those things you can use as your second

second piece. Then you can pick your

downell offer. So what if they say no to

any of these other offers? Well, we have

our entire downell flow which is we

start with payment plans. Uh then we do

a free trial or we do payment plan to

feature downell. Then we go to free

trial. You just pick the ones that you

know that you can execute on right now.

Step four, then you pick a continuity

offer. And the result is that you get

your cash back in 30 days, more

customers, and make more money. So

here's some notes. One, perfect one of

these at a time. If you try and do all

four at once or six of these things at

once, you're you're going to break your

business. Like I strongly recommend just

start with one. One is enough. There's

already enough complexity you doing

anything new that you haven't done

before. I try to include as many

important notes as I know that make

these things work in these trainings and

the book. There's some things that are

in this video training that are in the

book. There's some things in the book

that are in the video training. It's the

way it is. Uh so read both if you're

really serious about it. But if you have

enough from either of them, by all

means, please take action. All right.

Now, if you are going to uh start one of

these things, start it with a lower

price, get people to say yes, and then

start raising prices in stages. That's

my recommendation. Payment plans, based

on how I told you to present the uh the

discounted rate, uh basically the

prepayment discount versus the payment

plan rate is a great way to get kind of

a look into the future of what prices

the market will sustain. I like this

little saying, simple scales, fancy

fails. I want to have as few of these as

humanly possible because the fewer

pieces I have in my business, the fewer

things can break. And so I would rather

start with the simplest possible thing

that accomplishes the objective, which

is that I can offset my cost to acquire

customers. I can recycle that cash

within 30 days and I keep keep scaling.

Basically, removing acquisition is the

bottleneck in my business. Once I've

accomplished that, we've accomplished

our objective. We no longer need outside

money to scale, which is pretty sweet.

This is a little bit of an advanced tip.

Affiliate products can fill money model

gaps. So if you're like, "Okay, well, I

want to do a buy XQY free," then just do

a buy XQY free on someone else's

product. So then you can still sell your

main thing and then use somebody else's

product that you send traffic to, so you

can get cash. You have no operational

constraints. Now you can use that for

complimentary services rather than

something that's going to take away from

your core offer. You can turn attraction

offers into continuity offers

automatically just with renewal. Buy XY

free for example. If I said buy six get

six, it becomes a continuity offer if

after the end of that first year it

rolls into continuity. If I do win your

money back and say hey after this period

you then roll into continuity. If I say

decoy offer, I could say, "Hey, you

paid, you can either do this uh, you

know, this this simple thing that's not

that good or this amazing thing for more

money that has a guarantee. After that

period, it rolls in continuity." So, you

can take any attraction offer that I had

and just immediately turn into

continuity by just saying adding a

clause that says it rolls into

continuity at this price. And again, you

can mix and match these however you

like. So I I present them in this order

because this is the most logical order

that I can think of and as I have used

them in my businesses. But this is no in

no way a limitation on your ability to

innovate. And honestly I want you I want

you to send me all the cool money models

you guys figure out. Like that's the

point. This is me just showing you all

the stuff that I know that I could fit

into a presentation within a reasonable

amount of time. Um and so again right

you can use attraction offers an upsell.

Anything that you can that you can put

your mind to you can figure out. Okay.

So that is how you make the money model.

and let's go to 10 years and 10 minutes.

So, we just walked through how to make

your own money model. Now, we're going

to do 10 years of my life, more like 13

or 14. Uh, but 10 years and 10 minutes

sounds sexier, so we're going to call it

that. All right. So, where money model

fits in the grand scheme of things. So,

my first book, $100 million offers,

answer the question, what should I sell?

Answer an offer so good people feel

stupid saying no. My second book, $100

million leads, answer the next natural

question, how do I find these people?

Answer, you advertise. This book, $100

million money models, answers the next

natural question. How do we get them to

buy? Answer: a money model. So, what we

covered. A money model is a series of

offers designed to increase how many

customers you get, how much they pay,

and how fast they pay it. It's a

deliberate series of offers. A good

money model makes more profit from a

customer than it costs to get and

service them in the first 30 days.

That's the bare minimum. A $100 million

money model makes more profit from one

customer than it costs to get and

service many customers in the first 30

days, which removes cash as a limiter to

scaling your business. This is what

gives you limitless scale. This is how

I've scaled. Let's see. I got Allan from

zero to 1.7 million a month in six

months. I got Jim Launch from zero to

4.4 million a month in 20 months. Uh

we've gotten I can't tell you the school

metrics. I'll just say that they're even

better. Uh and um we have other copies

of the portfolio that we've scaled at

that same level of speed. All right. And

so if you can master this skill, this

may be the single most valuable thing

that I can give you, which is why the

sub headline of this book is how to make

money. Money models have four types of

offers. Attraction offers, upsell

offers, downell offers, and continuity

offers. Attraction offers get customers

by offering something free at a

discount. Often they also make money by

offering a better deal at a higher price

that we covered. We covered five. We

covered win back, which is where you set

a goal for the customer and tell them

how to reach it. And if they reach it,

then they qualify to get their money

back or get it as store credit. We

covered giveaways, where you advertise a

chance to win a big prize in exchange

for contact information and anything

else that you want from this prospect.

After picking a winner, you offer

everyone else the big prize at a

discounted price in second place. The

decoy offers are also attraction offers

where you advertise a free or discounted

offer. When the lead asks to learn more,

you also present a more valuable premium

offer. The premium offer includes more

features, benefits, bonuses, guarantees,

and so on and gets more people to buy

it. Buy X get Y free. You offer

customers free stuff in exchange for

buying stuff for money. the more free

stuff and the higher its value, the more

people will buy X to get Y free. Pay

less now or pay more later. You give

people a choice to pay full price later

or pay a discounted price now for

additional benefits. We also did free

with consumption, which I won't bonus

here, but fundamentally you give away a

lot of free value and that increases the

likely people buy a very expensive thing

from you. The more expensive the thing,

the longer and the more free stuff you

give them. Then we have upsell offers,

which is are whatever you offer next.

That is my very literal scientific

thing. try and break like fight me. An

upsell is whatever you offer next. All

right, so typically it's going to be

more better or newer version of whatever

they just bought. These can get you lots

of cash fast. We covered four. The

classic upsell where you offer the

solution to customers next problem the

moment they become aware of it. You

can't have X without Y. The menu upsell,

you tell customers which options they

don't need, then tell them which one

they do need and how to get the value

from it. Prescribe and you don't need

that, you need this. The anchor upsells,

you offer the most expensive thing

first. If the customer bulks, you offer

a much cheaper and still acceptable

alternative. No worries, you don't care

about X. This may be a better fit for

you. D rollover upselles. You credit

some or all of a customer's previous

purchase towards your next offer. Since

you already spent $500, I'll discredit

that towards staying a full year. Pick

your price, which I ended up not

including this. I'll probably make a

YouTube video about it. Downell offers

are whatever you offer after someone

says no. That's my scientific uh answer

for that. And by turning nos into yeses,

you make more money. We covered three of

my favorites. So, payment plan down

cells. You offer the same product at the

same price, but they pay some now and

the rest over time. When you get paid,

let's do half now and half then. Trial

with penalty. You let customers try your

product or service for free so long as

they meet your terms. If they do, then

they have a better chance of becoming

paying customers. If they don't, they

pay. If you do X, Y, and Z, I'll let you

start for free. Feature downells. You

lower prices by changing what the

customer gets. I offer lower quantity,

lower quality, or lower price

alternatives or cut optional components

altogether. If you're okay without a

guarantee, I can knock off $400. That's

how that works. Then we had continuity

offers, which provide ongoing value that

customers make ongoing payments for

until they cancel. These boost the

profit of every customer and give you

one last thing to sell. We covered three

of my favorites. Continuity bonus

offers. So, with a continuity bonus, you

give the customer an awesome thing if

they sign up today. Typically, the bonus

itself is more value than the first

continuity payment. If you sign up

today, you'll also get XYZ valuable

thing. And if you want them to stick,

you can continue to give them bonuses to

maintain the service. Continuity

discount offers we covered as the second

type. We covered first month, backend

commitments, and you give the customer

free time now, now or later if they sign

up today. And so, the key point is that

there's four different places that you

can spread it out. At the front, at the

end, in the middle, in between. That's

the point. Spread out over the whole

thing. But that is fundamentally how

continuity offers work to get people to

sign up. Then we have the wave fee

offers. So first you ask customer to pay

a startup fee as part of a joining a

month-to-month program. Then you offer a

discount the entire fee if they commit

to the longer term. If they cancel

inside the term they pay the fee premium

which I didn't I cut from this one. I'll

make a YouTube video about it because I

think it really only applies to software

and I thought that was too niche. All

right. You build money models one stage

at a time. Once I get customers reliably

then I make sure that they pay for

themselves reliably. Then I make sure

that they pay for other customers

reliably. Then I start maximizing each

customer's long-term value. Then I print

as much money as I possibly can. Bottom

line, the knowledge in these bullets

brought me more free and profitable

customers than I've known what to do

with. If executed, they will do the same

for you. And with that, cash will no

longer be a constraint in your business.

I hope that this book and this training

helps you guys grow your dream as big as

you darn please.

And that is 10 years and 10 minutes. So

in the next one, we'll just put it all

together and put a nice bow on it and

we'll wrap this puppy up.

All right, we just covered 10 years and

10 minutes. So now let's put this whole

thing together in a bow. We're rounding

home. We're going towards home plate.

We're in the end zone. We're in the red

zone. We're finishing this out. All

right. So my quick final words. So this

is uh something that I finished $100

million leads with and I just it's

something that I I really believe a lot

in. So this is a screenshot taken

without permission from Ray Delio's book

principles. Uh and this is basically his

his his concept of learning principles

overall is that you have big goals then

you fail then you learn principles from

the failure then you improve and then

you set more audacious goals. And so

fundamentally this is the learning

process. My goal with all the stuff that

I have is that I just share the stuff

that I've learned. I'm not saying this

is the only way to do business. I'm

saying we've now done we've c built

three businesses to or four businesses

past $100 million enterprise value two

or three I have to think past $100

million I think the third's about to hit

$100 million a year plus annual revenue

and so I can't say how to do a billion

dollars a year in sales I don't I don't

know that yet but I can say they get to

$100 million we've done it multiple

times and in terms of enterprise value

more times than that and the stuff that

I shared is the stuff that I know works

and so I recommend doing it that way so

that I and hopefully save you this part

and just have you go from here to here

and beyond.

And so I will read this uh this fun

little this fun little snapshot that uh

Leila got. This is early on. This is

before I became Instagram famous uh

before I started making YouTube videos.

Um this is when I just done gym lunch

and we were just doing our own thing

being private. Um and so Leila snapped

this when I wasn't looking and I was

like damn I look pensive AF. Uh anyways

this is the second time we taken a

private jet and it was dope. They figure

if you go down with the ship, your

seatelt won't save you. Regardless, to

every hard who's

disappointing their parents, wives,

husbands, friends, fake friends, and

everyone else who doubts you, number

one, I'm your biggest fan. Number two,

it's about to get real, so get hard

fast. Number three, you cannot lose if

you do not quit. I used to repeat that

to myself over and over again when I

didn't want to keep doing it. If you

feel hopeless, welcome to

entrepreneurship. If you feel like

you'll never make it, you're on the

right path. If you feel like you're a

disappointment to everyone you know,

keep moving. Because at the end

of the rainbow isn't a pot of gold. It's

you. It's the real you that's been

underneath all along whispering in your

ear, "Just one more step, one more call,

one more sale." And when I say that I'm

your biggest fan, it's because I was

there. And I know that because I know

exactly what it feels like having both

100% confidence and a th000% doubt at

the same time. So here's all you got to

do. Just keep moving, keep fighting,

keep improving. Your time will come.

Success is the only revenge. So, it's

been my great pleasure putting this all

together for you. Um, I hope that you

surpass me in every way humanly

possible. If you do, then I will have

succeeded. If you die without sharing

all your knowledge, you have wasted your

life. And I mean that. Um, making real

business education accessible to

everyone has been my personal mission

and it's been the joy of my life, the

most joyful thing that I've done um, up

to this point. So, I continue to do it.

Um, and in accomplishing your dreams,

you help me accomplish mine. So, the

possibilities are endless. I hope to

hear the combinations Mosy Nation puts

together so I can add them to the

repertoire. If you have a company, by

the way, that does over a million

dollars in profit and is cash flowing uh

and founder le, you can go to

acquisition.com and we can see if we can

help you scale. You can just hit the

scale button. If you're looking to sell

a business, we really like at this point

probably look at companies that are

worth I don't know $50 million plus like

it should be a big business. And if

you're not there yet, that's fine. Just

go and we'll help you scale. All right?

And so, um, if you're at neither of

those levels, then consider going

through the $100 million offers and $100

million leads books and the

corresponding trainings. They're free on

my site. If you have $0, they are also

$0 again on my site. If you're an audio

person, you can listen to them um on my

podcast. So, the leads book and the

audio for the offers book are both

there. So, if you're like, I'm broke as

hell, I get it. And that's why I have

that stuff for free. All right. So, if

you're struggling to figure out who to

sell to, you can go to

acquisition.com/avvatar.

So, this was like a single that I

released uh between books uh because I

got a lot of questions about like really

specific to Avatar stuff. So, I wrote a

whole chapter on that that you can go

grab. All right, we'll just pop your

email in. We'll send it to you. Um if

you're struggling to figure out what to

sell, that's what I made $100 million

offers for. You can scan the QR code. If

you're uh struggling with getting people

to buy, my next book will be on

persuasion and sales, maybe. I don't

know. We'll keep it mysterious. Uh, and

if you want a job at acquisition.com or

one of our portfolio companies, we love

hiring Mozy Nation. Just go to

acquisition.comcareersjob.

Uh, but probably just careers will take

you there and you can see all the

openings across all of our, uh,

portfolio companies. So, if you're a

savage and it would take five people to

replace in your business, we would like

to talk to you. Uh, beyond that, that is

the end of my presentation and uh, love

you all. Keep murdering it. I meant what

I said. You accomplishing your dreams

accomplishes mine. So keep cashing it