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100 million Dollar Money models

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the training on how to make money

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we are going to be covering

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all of this stuff in the next few hours together

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you'll also notice

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that some of these things correspond

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with the chapters of the book

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100 Million Dollar Money Models

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you'll also know that some of these things are not

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included in the book

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and that is because some of these things are extras

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they are Easter eggs they're my gift to you

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for actually making it over to the internet

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where you can watch with your eyeballs

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and listen with your earballs

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I will have things that are additional to the book

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chapters that go in a little bit more depth

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because with a book you have to be super

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super constrained in terms of attention

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with videos they can be a little bit more engaging

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and so I cover a little few more examples

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few different examples

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and add in some chapters that I ended up cutting out

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in the final version so enjoy

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with that being said let's get in context context

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context the purpose

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so why does this book exist

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the hundred million Dollar offers

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books answered the first question

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what do I sell because if you have nothing to sell

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there's nothing you can do

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now from there once you have something to sell

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you need somebody to sell it to

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because you still can't get money

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unless you have a person who gives you that money great

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100 million dollar leads answer that question

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which is how to get strangers to want to buy your stuff

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which the subtitle of that is advertising

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and the core 4 and lead getters

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and all the things we go into in that book

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so why does money models exist

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well money models exist between both of these books

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which is how to monetize if you have something to sell

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and then you have people to sell it to

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then you have the okay

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well how do I get them to give me money

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how do I get them to buy more stuff from me

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how do I actually make a profit from this

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and how do I profitably advertise

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in order to let even more people know

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all of those questions were answered in this book

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and to give you a little bit of backstory on this

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really quickly I wrote this book first

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and it was because

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this was my cookbook for making money

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this was all the tricks that I knew

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about making a business make more money

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but then I was like okay

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I can't wait to release this thing and then I realized

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oh shoot unless they know how to advertise

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they're not gonna

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be able to use any of the stuff in this book

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so I was like okay

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I gotta start writing this book

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on leads and advertising and

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as I was writing this book on leads and advertising

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I was like oh crap

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if they don't have anything to advertise

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they're not gonna be able to use this book

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so then I had to write leads

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so ended up having to write two books

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in order to get to this third book in the trilogy

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which I'm excited to share with you now

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so why do I write these books

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this is a little Isaac Newton

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if I have seen further than others

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it is by standing upon the shoulders of giants

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and so

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my goal is to pass as much on to you as I possibly can

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and hopefully make you lots and lots of money

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and maybe someday you hit me up and say hey

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can you invest in my company

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and I'll be happy to do that otherwise just make money

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I'm gonna die

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so are you and at least we can share some stuff alright

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big picture we're all here

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because other people in the past

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documented what they did for generations

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we may not remember the names

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but we do pass on the learnings

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and so that's kind of my goal here

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and so education is the greatest legacy of all

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that's why I make all the stuff that I make alright

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and so consider the alternative

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you live a life amassing education and then you die

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and then everyone has to relearn what you Learned

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everyone suffers what you suffered

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what a waste of a life and so I do this while I grow

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because I don't want

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to forget the little details at the end of my life

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cause some people like

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oh I'm gonna document at the end it's like

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well you're gonna forget all the details by then

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and so I try and make as much stuff as I can

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as I go up

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bread crumbs if you will

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simple skills are easy to teach

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complex skills often include some type of mentor

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or apprentice

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relationship for years to transfer knowledge

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so think about like deal making

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surgery scientist

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those are things that usually are complex skills

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but it's more so that there's just

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bundled terms that have many skills underneath of them

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and so it's more that

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people have a harder time quantifying it

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uh than it is that there are complex versus simple

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but the thing is

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is that there's not very many apprenticeships

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for business this is the problem right

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and so my books

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and my trainings are my attempt to mimic apprenticeship

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at scale so here's the problem this book solves

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most advertising isn't profitable

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aka people lose money getting customers

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and so let me explain how this works

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let's say you make $1,000 in profit per customer

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over the lifetime so

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this would be a lifetime

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gross profit of a thousand bucks

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and it cost you $100 to get a customer that's cack

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cost to acquire a customer cack

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so L t G P is 1,000 kacks 100 L t G P to kack

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which is a ratio is 10 to 1

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which means for every dollar you put in

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you get $10 back out

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now you should make that trade every time

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but

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what if you make the thousand dollars

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in a bulk payment 12 months later

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well shoot

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so that means you put a hundred dollars out today

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and then you do all this work

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and then you get paid a year later

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ugh well you should still make the trade

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but you're gonna have a lot of cash flow problems right

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so you have your negative hundred day one or month zero

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and then you're still losing money

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all this time delivering to the customer

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and then finally they pay at the end

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it could be equally said that

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let's say if we had a 10 year LTV

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and someone paid you $100 a year for

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you know eight dollars and thirty three cents a month

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for the next 10 years

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you should totally make that deal

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you're still not gonna have any money

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even be profitable until month 13

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you would either have to burn your own savings

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which sucks you'd have to burn other people's savings

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through debt and equity meaning

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you sell portions of your business

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in order to get more cash

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you do fund raising right

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or you raise some sort of loan from a bank

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so that they can basically fund your business

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while you wait to get this money back from customers

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which sucks and it's hard and I get it

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because I've been there

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but the good news is there is a better way

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which is door three uh

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make more than $100 in profit in the first 30 days

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for this particular instance

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and so this book is door three

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so

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if the problem is that most advertising is profitable

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the solution is something I call client finance

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acquisition or customer finance acquisition

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CFA is sometimes what I refer to it as

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and the point of that is to make money faster

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this enters the element of speed into the conversation

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not just how much you spend

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how much you make back but how fast you make it back

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because how fast you make it back

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can be the thing that unlocks

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all the growth in your business

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or tanks your business overnight

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so customer finance acquisition

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or client finance acquisition

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CFA is a process in which gross profit

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generated from a single client

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within the first 30 days

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is greater than the cost of acquiring that customer

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so where gross profit the extra cash that you make

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from somebody coming into your business

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from one customer in the first month

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is more than the cost of getting that customer

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now

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if you're listening or following along from the book

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this isn't in the book

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and the reason for that is that every single

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of my proofreaders

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as soon as I start getting into math

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they're like

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I don't know if people get sections from the book

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but they are here because it's important

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so

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the purpose of this is to accomplish customer finance

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acquisition so here's a quick story for you

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so let me tell you how this all started

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so this is me when I signed my first lease

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at $5,000 a month

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that's me not knowing what I was doing

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and this is where I slept

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and that's my really fancy equipment

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that I was able to afford

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and so

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I heard about this thing called Facebook Marketing

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and things started going well

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this is actually a picture I sent to my dad

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after the first week of having my gym

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to show how many memberships

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I actually was very proud of this

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which is kind of silly now that I look at it

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it's like I had like whatever 18 memberships

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but I was super proud of this

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I had hustled all day to get that and so the thing is

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is that thing started to grow and so that was good

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this was our my one year there's my little

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my little dinky streamers

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cause that's what I could afford at the time um

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but things were going well

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like all my clients showed up

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which is kind of sweet um

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and we grew over to 9  employees

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so that was cool um

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and I started to feel like I had it figured out

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I was like I'm a businessman

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and then of course

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Facebook slaps me and they 5 x my cost per lead

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and so what was once a money

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you know torrential Hurricane or downpour

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turned into the Sahara Desert

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or whatever desert this is uh

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and all I could think about was you know

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having to call my dad say

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I'm gonna be I'm a failure

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this is actually didn't work

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I didn't really know what I was doing

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and that would have sucked right

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and so all I could think about was

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how can I afford to pay for more leads right

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like the business worked everything was fine

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it's just my cost for lead went up

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and so

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I needed something that was immediate cash up front

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so I could pay off my credit card Bill

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for the ads spent without going into debt

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and so I want to highlight one key point right now

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is that two types of business owners

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about the things that

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are out of their control of yours

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if CPM's the cost per impression goes up on a platform

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you can either afford the impressions or you can't

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and you can beg borrow

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and steal and wish that the impression cost goes down

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it's not gonna change anything right

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of course you can make better ads

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make better hooks things like that

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but fundamentally my lead cost went up

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so you can either go out of business

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or you can try and figure out a way to make more money

274
00:08:35,266 --> 00:08:38,300
per customer and so that's what we did alright

275
00:08:38,300 --> 00:08:39,400
and so this is what happens

276
00:08:39,400 --> 00:08:40,866
so I'm traveling home for the holidays

277
00:08:41,266 --> 00:08:42,866
and I've got this layover somewhere

278
00:08:42,866 --> 00:08:45,766
and I see a guy from college in the same waiting area

279
00:08:45,766 --> 00:08:46,633
and I was like oh don't shoot

280
00:08:46,633 --> 00:08:47,800
I was like hey what's up dude

281
00:08:47,800 --> 00:08:49,066
so we start chatting and it turned out

282
00:08:49,066 --> 00:08:50,900
that he started a supplement business

283
00:08:51,100 --> 00:08:52,566
I was like oh okay

284
00:08:52,566 --> 00:08:54,500
kind of interesting and so I was like hey

285
00:08:54,500 --> 00:08:55,166
so how do you make

286
00:08:55,166 --> 00:08:56,766
how much do you make a month from your sub company

287
00:08:56,766 --> 00:08:58,033
he's like well I got two locations

288
00:08:58,033 --> 00:08:59,200
one does about 80,000 a month

289
00:08:59,200 --> 00:09:03,800
the other is 130,000 a month and I was like a month

290
00:09:03,800 --> 00:09:05,266
it's like selling supplements

291
00:09:05,866 --> 00:09:06,766
and

292
00:09:07,300 --> 00:09:09,900
a guy can make an extra 80,000 a month

293
00:09:09,900 --> 00:09:11,233
selling supplement without any members

294
00:09:11,233 --> 00:09:12,700
I got a gym he has no gym

295
00:09:12,700 --> 00:09:14,200
I've got a gym with members

296
00:09:14,200 --> 00:09:15,433
he doesn't have members I was like

297
00:09:15,433 --> 00:09:18,800
I can definitely sell 20 grand a month with my members

298
00:09:18,800 --> 00:09:20,266
just to cover my costs

299
00:09:21,100 --> 00:09:21,433
and so

300
00:09:21,433 --> 00:09:23,733
I put in order for supplements to resell at my gym

301
00:09:23,900 --> 00:09:24,966
and at first of course

302
00:09:24,966 --> 00:09:27,666
no one bought until one day I was able to make a sale

303
00:09:27,900 --> 00:09:29,000
and then from that day going forward

304
00:09:29,000 --> 00:09:31,966
I began selling $200 per person in supplements

305
00:09:31,966 --> 00:09:33,500
so about a hundred bucks in profit

306
00:09:33,500 --> 00:09:34,633
and that hundred dollars

307
00:09:34,633 --> 00:09:37,133
offset my cost of getting a new member in the door

308
00:09:37,166 --> 00:09:38,233
and so I used to have to spend

309
00:09:38,233 --> 00:09:39,966
money to get the person in the door

310
00:09:40,000 --> 00:09:41,600
and then sell them stuff and then wait to get

311
00:09:41,600 --> 00:09:43,266
you know recruit membership cost etcetera

312
00:09:43,266 --> 00:09:44,266
but here with the supplements

313
00:09:44,266 --> 00:09:45,700
I could sell them supplements up front

314
00:09:45,700 --> 00:09:47,866
and I made my cost to get the customer back

315
00:09:48,033 --> 00:09:48,266
alright

316
00:09:48,266 --> 00:09:51,200
so I was able to start spending way more money on ads

317
00:09:51,200 --> 00:09:53,500
again because it paid for my advertising

318
00:09:53,500 --> 00:09:55,800
and so it made all the new members and the cash

319
00:09:55,800 --> 00:09:58,300
they paid free which is sweet

320
00:09:58,833 --> 00:10:01,266
and so the moral is that I made another offer

321
00:10:01,300 --> 00:10:02,466
and when I made another offer

322
00:10:02,466 --> 00:10:04,466
I made more money and so the outcome was

323
00:10:04,466 --> 00:10:06,366
I was able to get paid to get new customers

324
00:10:06,366 --> 00:10:07,200
and I'll say that again

325
00:10:07,200 --> 00:10:10,000
I was able to get paid to get new customers

326
00:10:10,166 --> 00:10:11,433
so most people pay to get customers

327
00:10:11,433 --> 00:10:12,966
I was getting paid to grow

328
00:10:13,200 --> 00:10:14,500
and so my gyms grew

329
00:10:15,200 --> 00:10:16,166
and so over time

330
00:10:16,166 --> 00:10:18,433
I continue to get better and better at recombining

331
00:10:18,433 --> 00:10:20,833
the way I charged and structured my client journey

332
00:10:20,833 --> 00:10:22,966
to make more money than my competitors

333
00:10:23,066 --> 00:10:25,466
and so I went from making like 4 to 5 to 1

334
00:10:25,466 --> 00:10:27,800
to making 31 and up

335
00:10:27,800 --> 00:10:30,633
so like every dollar I put in I would get $30

336
00:10:30,633 --> 00:10:34,266
$40 back on my marketing and I'll show you how I did it

337
00:10:34,366 --> 00:10:35,066
alright so

338
00:10:35,066 --> 00:10:37,733
I eventually took that multi step money model

339
00:10:37,766 --> 00:10:40,866
and licensed everything about it to 5000  locations

340
00:10:41,600 --> 00:10:43,233
and that's what became gymlaunch

341
00:10:43,233 --> 00:10:44,800
and the average return on ad spend

342
00:10:44,800 --> 00:10:46,366
in the first 30 days across all

343
00:10:46,366 --> 00:10:47,566
those gyms all right

344
00:10:47,566 --> 00:10:49,666
not including memberships to this day is 4 to 1

345
00:10:49,666 --> 00:10:51,800
and that's up front that doesn't include memberships

346
00:10:51,800 --> 00:10:53,700
so that's a not a true LTV to cap ratio

347
00:10:53,700 --> 00:10:56,033
I'm saying that's the up front cash

348
00:10:56,033 --> 00:10:58,600
they collect in the first 30 days from customers

349
00:10:58,600 --> 00:11:01,466
they still have the whole membership on the back

350
00:11:02,500 --> 00:11:04,100
and so that's what I'm gonna break down for you

351
00:11:04,100 --> 00:11:05,000
in this training alright

352
00:11:05,000 --> 00:11:07,133
which is exactly how to do that at any business

353
00:11:07,200 --> 00:11:08,400
which is build a money model

354
00:11:08,400 --> 00:11:10,566
that allows you to never use your own money

355
00:11:10,633 --> 00:11:12,600
to get customers again alright

356
00:11:12,600 --> 00:11:14,400
that means that you're no longer constrained

357
00:11:14,400 --> 00:11:15,566
by how much capital you have

358
00:11:15,566 --> 00:11:17,800
who you know what your bank lending terms are

359
00:11:17,900 --> 00:11:20,700
it's just about what you can design

360
00:11:20,766 --> 00:11:22,300
in terms of how you build your money model

361
00:11:22,300 --> 00:11:24,066
so that you can use other people's money

362
00:11:24,066 --> 00:11:24,766
not banks

363
00:11:24,766 --> 00:11:27,333
but your other customers money to finance your growth

364
00:11:28,500 --> 00:11:31,366
so that was my quick story alright

365
00:11:31,400 --> 00:11:37,366
and we have given you context now we begin how business

366
00:11:48,233 --> 00:11:50,400
how businesses make money

367
00:11:50,833 --> 00:11:54,033
how businesses make money starting with No. 1

368
00:11:54,033 --> 00:11:56,866
LTP has to be greater than CAC duh

369
00:11:57,066 --> 00:11:58,900
but let's get into it oh look

370
00:11:58,900 --> 00:12:01,166
I did write this duh haha

371
00:12:01,366 --> 00:12:03,466
so you've got to make more money

372
00:12:03,466 --> 00:12:04,766
over the lifespan of the customer

373
00:12:04,766 --> 00:12:06,700
than it cost you to get them obviously

374
00:12:06,700 --> 00:12:07,100
cause otherwise

375
00:12:07,100 --> 00:12:09,066
you're spending money to get people who

376
00:12:09,100 --> 00:12:10,766
give you less money than it cost you to get them

377
00:12:10,766 --> 00:12:12,900
which is not a good recipe for making money

378
00:12:13,200 --> 00:12:17,033
so cool thing No. 1 glad we covered that No. 2

379
00:12:17,033 --> 00:12:18,900
let me give you this a real example to make this

380
00:12:18,900 --> 00:12:21,700
make this real for you so this is a real thing for me

381
00:12:21,700 --> 00:12:24,766
so I had a meals company for a year or two um

382
00:12:24,766 --> 00:12:27,200
and foreshadowing things went wrong

383
00:12:27,233 --> 00:12:28,633
so we had a hundred dollar cap

384
00:12:28,633 --> 00:12:30,433
which means it cost me 100 dollars to get a customer

385
00:12:30,433 --> 00:12:32,966
and we had 500 dollars of lifetime revenue

386
00:12:33,533 --> 00:12:36,766
I'm highlighting this lifetime revenue and I was like

387
00:12:36,766 --> 00:12:39,200
and so my team comes to me and says hey

388
00:12:39,233 --> 00:12:40,300
we're gonna be rich

389
00:12:40,300 --> 00:12:42,300
every hundred dollars we put in we get $500 back

390
00:12:42,300 --> 00:12:44,433
let's spend more money and I was like

391
00:12:44,433 --> 00:12:49,100
hold on one second and so not so fast I was like okay

392
00:12:49,100 --> 00:12:52,066
well what are our gross margins on these meals

393
00:12:52,633 --> 00:12:55,100
and so the gross margins were 20%

394
00:12:55,300 --> 00:12:58,200
so and our lifetime revenue was 1 65 * 3

395
00:12:58,200 --> 00:13:01,100
meaning people would pay for $165 a week for the meals

396
00:13:01,100 --> 00:13:02,800
and they would pay for three weeks okay

397
00:13:02,900 --> 00:13:07,566
so the 30 day gross profit was uh was um sorry

398
00:13:07,566 --> 00:13:09,366
this is per month excuse me uh

399
00:13:09,366 --> 00:13:12,500
so 1 65 times 20% is $33

400
00:13:12,866 --> 00:13:14,233
so now

401
00:13:14,233 --> 00:13:17,566
my lifetime gross profit was 500 times 20% was $100

402
00:13:18,633 --> 00:13:22,566
so wait a second so you're saying I'm spending 100

403
00:13:22,566 --> 00:13:25,333
making $33 back in the first month

404
00:13:25,600 --> 00:13:26,466
and spending a hundred

405
00:13:26,466 --> 00:13:28,400
and making a hundred dollars back

406
00:13:28,433 --> 00:13:30,400
lifetime but then we have like

407
00:13:30,400 --> 00:13:31,200
all these humans

408
00:13:31,200 --> 00:13:33,500
that we have to do all this other stuff with as well

409
00:13:34,166 --> 00:13:36,200
well that's not gonna work very well

410
00:13:36,400 --> 00:13:39,166
and so it didn't and so I told them to not do that

411
00:13:39,300 --> 00:13:41,533
that's also why I'm not in the meals business anymore

412
00:13:41,700 --> 00:13:43,400
um now if you're like hey

413
00:13:43,400 --> 00:13:44,600
why didn't you work to figure it out

414
00:13:44,600 --> 00:13:45,900
it was the fourth business

415
00:13:45,900 --> 00:13:48,000
I started while I was still CEO

416
00:13:48,000 --> 00:13:50,566
and Layla and I had one of these conversations

417
00:13:50,566 --> 00:13:53,466
she's like pick and I was like legit

418
00:13:53,566 --> 00:13:54,800
and so I ended up shutting down that

419
00:13:54,800 --> 00:13:55,633
cause I had a co packer

420
00:13:55,633 --> 00:13:58,333
so it wasn't like I had a huge amount of um

421
00:13:58,366 --> 00:13:59,666
staff or something that I had to lay off

422
00:13:59,666 --> 00:14:00,266
or anything like that

423
00:14:00,266 --> 00:14:02,200
I was repurposing my supplement company

424
00:14:02,400 --> 00:14:04,900
staff to deal with all the meal stuff

425
00:14:05,200 --> 00:14:06,600
here's a fun fact for you

426
00:14:06,833 --> 00:14:09,533
80% of our customer complaints came from meals

427
00:14:09,700 --> 00:14:11,466
20% from supplements

428
00:14:11,500 --> 00:14:15,033
and 95% of my profits came from supplements

429
00:14:15,033 --> 00:14:17,533
and 5% came from meals and I was like

430
00:14:18,066 --> 00:14:20,566
I think if I were giving me advice

431
00:14:20,566 --> 00:14:23,700
I would advise me to stop doing this and so I did

432
00:14:23,700 --> 00:14:25,233
so let me give you some benchmarks though

433
00:14:25,233 --> 00:14:26,366
so you have an idea cause you're like OK

434
00:14:26,366 --> 00:14:30,200
got it so LTB lt let's just say GP not PG

435
00:14:30,200 --> 00:14:31,500
so it's not a PG thirteen movie

436
00:14:31,500 --> 00:14:32,100
lifetime

437
00:14:32,100 --> 00:14:35,366
gross profit to cack ratio should be over 3 to 1

438
00:14:35,366 --> 00:14:35,866
which means you

439
00:14:35,866 --> 00:14:38,066
should be able to make more than three times

440
00:14:38,066 --> 00:14:39,800
what it cost you to get a customer

441
00:14:39,800 --> 00:14:41,966
in gross profit not revenue

442
00:14:42,400 --> 00:14:46,066
gross profit back to you as a business owner alright

443
00:14:46,066 --> 00:14:46,866
at minimum

444
00:14:46,866 --> 00:14:49,400
in order to have a profitable business at minimum

445
00:14:49,400 --> 00:14:51,133
this is not like that's the goal

446
00:14:51,166 --> 00:14:53,100
this is the by all means if you're below this

447
00:14:53,100 --> 00:14:54,400
you're absolutely screwed at 3

448
00:14:54,400 --> 00:14:55,966
you're still not like in great you know

449
00:14:55,966 --> 00:14:59,766
in a great position ideally it's much higher OK

450
00:14:59,800 --> 00:15:01,800
here's the example gone better

451
00:15:01,900 --> 00:15:05,166
so in order for this hack to work for this business

452
00:15:05,200 --> 00:15:07,866
I would have to make 15 dollars

453
00:15:07,900 --> 00:15:10,700
not five hundred dollars in lifetime gross profit

454
00:15:10,700 --> 00:15:13,000
in order for this to make sense

455
00:15:13,000 --> 00:15:16,233
so I had to be way higher in order for this to work

456
00:15:16,233 --> 00:15:18,966
and it wasn't okay so

457
00:15:19,400 --> 00:15:20,300
that's just to give you an idea

458
00:15:20,300 --> 00:15:22,000
of what kind of adjustments that I would have to make

459
00:15:22,000 --> 00:15:23,166
in order to make that business work

460
00:15:23,166 --> 00:15:23,666
which I was like

461
00:15:23,666 --> 00:15:25,200
I don't know if I can conceivably do that

462
00:15:25,200 --> 00:15:27,400
which ultimately LED to me deciding not to

463
00:15:27,666 --> 00:15:29,433
which then leads us to the only three numbers

464
00:15:29,433 --> 00:15:31,266
that matters and this is what you need to write down

465
00:15:31,266 --> 00:15:33,300
this is what you need to think with alright

466
00:15:33,300 --> 00:15:35,166
now this is not in the book and you're like

467
00:15:35,166 --> 00:15:35,700
wait a second

468
00:15:35,700 --> 00:15:37,233
how are you not talking about this in the book

469
00:15:37,233 --> 00:15:38,433
it's cause no one can do math

470
00:15:38,433 --> 00:15:41,833
so you're here and you can do math

471
00:15:41,833 --> 00:15:43,200
so if you're looking closely

472
00:15:43,200 --> 00:15:44,433
you may notice that there's three numbers

473
00:15:44,433 --> 00:15:46,566
that make the biggest difference here alright

474
00:15:46,566 --> 00:15:49,866
so number one is cack which is the cost to our customer

475
00:15:49,900 --> 00:15:51,700
the second is the fact that I talk about this

476
00:15:51,700 --> 00:15:54,166
30 day thing like why am I talking about 30 days

477
00:15:54,166 --> 00:15:55,800
and the third is gross profit

478
00:15:56,766 --> 00:15:59,900
which those three metrics triangulate acquisition

479
00:16:00,066 --> 00:16:01,700
meaning getting new customers

480
00:16:01,966 --> 00:16:03,500
cack is how much it costs

481
00:16:03,866 --> 00:16:05,566
GP is to make a profit

482
00:16:05,900 --> 00:16:08,766
and short PPD means payback period

483
00:16:08,833 --> 00:16:10,866
how long it takes you to make that money back

484
00:16:10,866 --> 00:16:13,133
how long it takes you to make your cost back

485
00:16:14,233 --> 00:16:17,066
so ideally you get have low cap

486
00:16:17,066 --> 00:16:18,200
which means you have cheap customers

487
00:16:18,200 --> 00:16:19,866
you have high GP who pay you lots of money

488
00:16:19,866 --> 00:16:20,966
and then short payback period

489
00:16:20,966 --> 00:16:24,300
which means really fast outcome is more money faster

490
00:16:26,200 --> 00:16:26,500
alright

491
00:16:26,500 --> 00:16:28,300
and that's pretty much the training in this book

492
00:16:28,366 --> 00:16:29,800
alright like that's what this is all about

493
00:16:29,800 --> 00:16:31,400
so that's that's what we accomplished

494
00:16:31,400 --> 00:16:34,100
the rest of this is all about how okay

495
00:16:34,100 --> 00:16:36,733
so boom those are the three numbers that matter

496
00:16:36,800 --> 00:16:38,500
and let's get into the first one

497
00:16:38,500 --> 00:16:39,233
a little bit more detail

498
00:16:39,233 --> 00:16:40,333
cause some of you guys are like

499
00:16:40,566 --> 00:16:43,566
Kack sounds like something my cat threw up understood

500
00:16:43,566 --> 00:16:44,433
that's the next one

501
00:16:46,400 --> 00:16:49,966
so cost to acquire customer aka cack

502
00:16:50,633 --> 00:16:54,000
let's dive in cost to acquire customer again

503
00:16:54,000 --> 00:16:56,766
so let's start with definition all right

504
00:16:56,766 --> 00:16:57,666
cost of acquiring a customer

505
00:16:57,666 --> 00:16:59,900
all the cost required to sell a new customer

506
00:16:59,900 --> 00:17:01,566
so that's the advertising dollars

507
00:17:01,566 --> 00:17:04,033
the payroll to a media buyer creative team

508
00:17:04,033 --> 00:17:05,200
software that you

509
00:17:05,200 --> 00:17:07,400
that the team uses to make advertising and sales

510
00:17:07,400 --> 00:17:09,100
commissions salaries

511
00:17:09,166 --> 00:17:10,400
the managers of those teams

512
00:17:10,400 --> 00:17:11,700
everything that it cost you

513
00:17:11,700 --> 00:17:13,200
so a lot of people and if you want

514
00:17:13,200 --> 00:17:14,700
you can delineate how much does it cost

515
00:17:14,700 --> 00:17:16,366
if you use paid ads for example

516
00:17:16,366 --> 00:17:18,066
how much it cost us in media spend

517
00:17:18,066 --> 00:17:19,266
versus how much is our

518
00:17:19,300 --> 00:17:21,966
sometimes people will call it fully loaded CAC uh

519
00:17:22,066 --> 00:17:23,500
you can have both those numbers separated out

520
00:17:23,500 --> 00:17:24,400
which I think is wise

521
00:17:24,400 --> 00:17:27,000
it's kind of like media cap versus fully loaded uh

522
00:17:27,000 --> 00:17:27,966
but at the very basic

523
00:17:27,966 --> 00:17:30,166
now that only really applies to paid media

524
00:17:30,166 --> 00:17:31,800
if you acquire customers via outbound

525
00:17:31,800 --> 00:17:33,733
payroll is gonna be the majority of your cap

526
00:17:33,866 --> 00:17:35,466
if you use uh

527
00:17:35,466 --> 00:17:38,000
content to get customers as your primary acquisition

528
00:17:38,166 --> 00:17:39,066
uh method

529
00:17:39,066 --> 00:17:41,100
then it's just gonna be the cost of the payroll

530
00:17:41,100 --> 00:17:43,233
for the team that does all the distribution of content

531
00:17:43,233 --> 00:17:44,500
and editing and what not

532
00:17:44,766 --> 00:17:46,500
but most companies especially if you're bigger

533
00:17:46,500 --> 00:17:48,166
are gonna have multiple different versions of that

534
00:17:48,166 --> 00:17:49,800
which is why you just look at everything

535
00:17:50,066 --> 00:17:51,500
and you look at how many customers you got

536
00:17:51,500 --> 00:17:52,400
you divide it out and you're like

537
00:17:52,400 --> 00:17:53,433
that's our cost per customer

538
00:17:53,433 --> 00:17:55,600
so if we're trying to get unlimited customers

539
00:17:55,600 --> 00:17:58,066
we better be sure we know what our own costs

540
00:17:58,300 --> 00:18:00,266
uh to make sure that we can actually pay for it

541
00:18:00,266 --> 00:18:03,566
so that we can get unlimited new customers alright

542
00:18:03,566 --> 00:18:05,500
so let's calculate it together

543
00:18:05,500 --> 00:18:07,966
so if you use outrage as your primary way of getting

544
00:18:07,966 --> 00:18:08,766
customers

545
00:18:08,833 --> 00:18:12,800
then you use let's say $200 a month in email software

546
00:18:12,800 --> 00:18:15,400
and you pay someone $3,000 a month to do cold email

547
00:18:15,400 --> 00:18:19,666
prospecting for you then emails become appointments

548
00:18:19,666 --> 00:18:21,866
that turn into eight sales per month

549
00:18:22,166 --> 00:18:24,700
and so then you pay your salesperson $100 per sale

550
00:18:24,700 --> 00:18:26,000
so then what's Kack alright

551
00:18:26,000 --> 00:18:28,600
this is like a chat GPT prompt word problem

552
00:18:28,600 --> 00:18:29,233
but fundamentally

553
00:18:29,233 --> 00:18:31,466
this is what it looks like for you as a business owner

554
00:18:31,600 --> 00:18:33,500
so this is how we this is how we calculate it

555
00:18:33,500 --> 00:18:36,166
so the total cost for 8 sales

556
00:18:36,166 --> 00:18:38,300
means that you have a 3,000 dollar emailer

557
00:18:38,300 --> 00:18:39,966
plus a 200 dollar software

558
00:18:39,966 --> 00:18:41,366
plus 800 bucks in commissions

559
00:18:41,366 --> 00:18:44,366
which is 8 sales times 100 dollars equals 4 grand

560
00:18:44,500 --> 00:18:44,800
all right

561
00:18:44,800 --> 00:18:48,366
so now we divide that by the number of new customers

562
00:18:48,366 --> 00:18:51,900
which is $4,000 divided by eight new customers

563
00:18:51,900 --> 00:18:54,533
equals 500 bucks per sale

564
00:18:54,566 --> 00:18:57,666
so cack is $500 in this outreach example

565
00:18:58,033 --> 00:19:00,466
so let's say that you have a content business

566
00:19:00,466 --> 00:19:01,666
so let's do this one

567
00:19:02,000 --> 00:19:04,600
so you have to pay two people on your media team

568
00:19:04,600 --> 00:19:06,500
that you pay $5,000 a month each

569
00:19:06,500 --> 00:19:07,700
and they help you make

570
00:19:07,700 --> 00:19:10,300
edit and distribute content across all platforms right

571
00:19:10,300 --> 00:19:12,600
so that content then turn into inbound messages

572
00:19:12,600 --> 00:19:13,866
and then options on your site

573
00:19:13,866 --> 00:19:16,366
and then those leads turn into 10 new customers

574
00:19:16,400 --> 00:19:19,300
and you pay $100 in commission per sale alright

575
00:19:19,300 --> 00:19:20,900
so what's cap so

576
00:19:20,900 --> 00:19:22,200
the reason I'm giving you all those stats

577
00:19:22,200 --> 00:19:23,833
is so that you can plug your own stats in

578
00:19:23,833 --> 00:19:25,333
and then figure this out for yourself

579
00:19:25,766 --> 00:19:28,400
so if my media payroll is 5 k times 2

580
00:19:28,400 --> 00:19:29,833
it's $10,000 a month there

581
00:19:29,833 --> 00:19:32,800
my commissions is 10 sales times 100 is 1,000

582
00:19:32,800 --> 00:19:33,366
so all in

583
00:19:33,366 --> 00:19:35,966
I got 10 grand plus 1 grand is eleven thousand dollars

584
00:19:35,966 --> 00:19:39,233
so my cost to a car customer will say is $11,000

585
00:19:39,233 --> 00:19:41,966
divided by 10 customers equals 11 dollars

586
00:19:41,966 --> 00:19:44,300
so my CAX 11 bucks now if some of you are like wait

587
00:19:44,300 --> 00:19:47,200
I have sales payroll in there too then add it in

588
00:19:47,966 --> 00:19:49,200
if there's something that you don't have here

589
00:19:49,200 --> 00:19:50,466
cut it out but fundamentally

590
00:19:50,466 --> 00:19:52,166
it's just all the money you spend to get new customers

591
00:19:52,166 --> 00:19:54,100
divided by how many customers you got cool

592
00:19:54,100 --> 00:19:55,700
and I'll do one quick one on paid ads

593
00:19:55,700 --> 00:19:59,000
so you spend $4,000 a month on a media buyer

594
00:19:59,000 --> 00:20:01,466
you spend 20 grand in buying ads

595
00:20:01,466 --> 00:20:02,766
the actual media itself

596
00:20:02,833 --> 00:20:04,666
you spend a thousand bucks commissions per sale

597
00:20:04,666 --> 00:20:06,000
so this is probably a higher ticket sale

598
00:20:06,066 --> 00:20:07,366
and you spend $1,000 on software

599
00:20:07,366 --> 00:20:09,400
and tracking and following up the leads that come in

600
00:20:09,400 --> 00:20:11,566
to get 10 new customers so what's cracked

601
00:20:12,233 --> 00:20:15,833
so media 4K media spend 20K software

602
00:20:15,833 --> 00:20:18,833
1K commissions 10 times one 10,000

603
00:20:18,833 --> 00:20:24,166
so all in we spend $35,000 divided by 10 customers

604
00:20:24,566 --> 00:20:27,500
thirty five hundred dollars per customer is our cack

605
00:20:28,033 --> 00:20:29,300
that's how this works

606
00:20:30,200 --> 00:20:33,366
by the way one of the best ways to improve any metric

607
00:20:33,366 --> 00:20:34,866
is to start measuring it

608
00:20:35,066 --> 00:20:38,866
so how to improve it in this whole training

609
00:20:39,033 --> 00:20:41,000
I talk about lots of different things that cover

610
00:20:41,000 --> 00:20:42,466
and check off different boxes here

611
00:20:42,466 --> 00:20:44,100
but fundamentally if you had nothing else

612
00:20:44,100 --> 00:20:44,500
and you just want to

613
00:20:44,500 --> 00:20:46,033
need to have a cheat sheet for this

614
00:20:46,033 --> 00:20:47,866
it would be you make better offers

615
00:20:47,866 --> 00:20:49,533
that gets you higher response rates

616
00:20:49,566 --> 00:20:50,900
and if you make better offers

617
00:20:50,900 --> 00:20:52,800
you're also going to convert a higher percentage people

618
00:20:52,800 --> 00:20:54,566
more people are going to take the next step uh

619
00:20:54,566 --> 00:20:56,300
if you have better offers in general

620
00:20:56,300 --> 00:20:58,466
your CPM's are also gonna go down because people like

621
00:20:58,466 --> 00:21:00,300
oh this is a better offer great uh

622
00:21:00,300 --> 00:21:01,366
you'll have cheaper labor

623
00:21:01,366 --> 00:21:03,566
so you won't this is not necessarily related

624
00:21:03,566 --> 00:21:05,433
but you could have cheaper labor as a way to improve

625
00:21:05,433 --> 00:21:06,566
cack like if you had

626
00:21:06,566 --> 00:21:07,666
if you paid your sales guys less

627
00:21:07,666 --> 00:21:09,066
or you paid the outbound team less

628
00:21:09,066 --> 00:21:11,266
whatever it is like that could decrease your cack

629
00:21:11,500 --> 00:21:12,700
and you could have cheaper software

630
00:21:12,700 --> 00:21:13,966
because that is also a cost

631
00:21:13,966 --> 00:21:15,433
but I would say if I had to measure

632
00:21:15,433 --> 00:21:17,000
which of these is gonna be the biggest levers

633
00:21:17,100 --> 00:21:19,266
it's gonna be these three and I would

634
00:21:19,266 --> 00:21:21,166
I rarely go and dip into these ones

635
00:21:21,166 --> 00:21:22,066
to be very candid with you

636
00:21:22,066 --> 00:21:23,866
because you have such an order of magnitude changes

637
00:21:23,866 --> 00:21:24,700
you can make up here

638
00:21:24,700 --> 00:21:26,200
that sometimes this stuff becomes irrelevant

639
00:21:26,200 --> 00:21:29,633
you lose morale for no real no real benefit alright

640
00:21:29,633 --> 00:21:33,100
so we talk about these two primarily for this book

641
00:21:33,800 --> 00:21:36,700
so the two most powerful words in advertising are free

642
00:21:36,700 --> 00:21:39,000
and new use them

643
00:21:39,833 --> 00:21:42,233
and so for us if our objective is to lower

644
00:21:42,233 --> 00:21:43,600
cap to the greatest degree possible

645
00:21:43,666 --> 00:21:45,366
we wanna get as many sales as possible

646
00:21:45,366 --> 00:21:47,300
for as little advertising dollars as possible

647
00:21:47,300 --> 00:21:47,833
and so that means

648
00:21:47,833 --> 00:21:48,100
we wanna

649
00:21:48,100 --> 00:21:50,300
convert the highest percentage of our audience

650
00:21:50,566 --> 00:21:50,866
and so

651
00:21:50,866 --> 00:21:53,500
note that this is expanded content from the book

652
00:21:53,500 --> 00:21:55,833
alright that I just think is worth knowing alright

653
00:21:55,833 --> 00:21:57,033
so in hundred million dollar leads

654
00:21:57,033 --> 00:21:58,400
I talk about the value of giving something

655
00:21:58,400 --> 00:22:01,000
away for free some people don't want to do that

656
00:22:01,000 --> 00:22:02,066
but let me explain why

657
00:22:02,066 --> 00:22:04,400
I think it's probably a good idea

658
00:22:04,433 --> 00:22:06,900
especially if you're starting out alright

659
00:22:06,900 --> 00:22:09,266
so Dan Ariely again none of this is in the book

660
00:22:09,266 --> 00:22:10,233
I had to cut this out

661
00:22:10,233 --> 00:22:14,100
so Dan Ariely who's a famous behavioral economist

662
00:22:14,200 --> 00:22:16,300
psychologist whatever some science dude alright

663
00:22:16,300 --> 00:22:18,333
so he ran this thing called the Hershey Kiss test

664
00:22:18,566 --> 00:22:21,200
and he would give away Hershey kisses for free

665
00:22:21,200 --> 00:22:22,866
or he'd give them away for a penny

666
00:22:24,000 --> 00:22:25,466
Wanna guess the difference in take rates

667
00:22:25,466 --> 00:22:26,666
on a college campus

668
00:22:27,866 --> 00:22:29,633
nine times more people

669
00:22:29,633 --> 00:22:32,366
took the free Hershey kiss versus the one penny kiss

670
00:22:32,366 --> 00:22:34,933
and he called this the penny gap

671
00:22:35,100 --> 00:22:36,533
nine times more

672
00:22:37,066 --> 00:22:38,433
for those of you who have this like

673
00:22:38,433 --> 00:22:39,466
keening and hawing of like

674
00:22:39,466 --> 00:22:41,066
I don't wanna give stuff away for free

675
00:22:42,466 --> 00:22:44,166
okay don't

676
00:22:47,066 --> 00:22:48,666
I think it dilutes my brand

677
00:22:51,033 --> 00:22:51,833
OK

678
00:22:53,666 --> 00:22:55,600
there's a difference between giving products

679
00:22:55,600 --> 00:22:58,333
away for free and giving value away for free

680
00:22:59,100 --> 00:23:01,066
and you have to understand the difference

681
00:23:01,066 --> 00:23:03,400
and I I have always subscribed to the chick fil a

682
00:23:03,400 --> 00:23:04,200
model of this

683
00:23:04,200 --> 00:23:06,366
which is either it's free or it's full price

684
00:23:06,366 --> 00:23:08,666
never discounted so if we mess something up

685
00:23:08,666 --> 00:23:10,500
your sandwich and your whole meal's on us

686
00:23:10,566 --> 00:23:14,666
but otherwise it's premium and it's full price

687
00:23:14,766 --> 00:23:16,900
but it's one or the other there is no in between

688
00:23:17,433 --> 00:23:19,900
and so if we want to make let's say your B to B

689
00:23:19,900 --> 00:23:21,233
you make content that's free

690
00:23:21,233 --> 00:23:22,833
you make lead magnets that are free

691
00:23:22,833 --> 00:23:24,666
you provide value you make software tools

692
00:23:24,666 --> 00:23:25,800
you give them away for free

693
00:23:25,800 --> 00:23:28,966
these are all things if it's free versus $1

694
00:23:28,966 --> 00:23:29,566
like

695
00:23:29,566 --> 00:23:31,733
you're gonna get shitty customers if you do it like

696
00:23:32,700 --> 00:23:33,500
OK

697
00:23:34,866 --> 00:23:37,366
cool and for everyone who does wanna listen

698
00:23:37,366 --> 00:23:38,200
let's keep going

699
00:23:38,300 --> 00:23:41,900
so we start for free because if they don't want it

700
00:23:41,900 --> 00:23:44,433
it's because they 1 don't want it

701
00:23:44,433 --> 00:23:44,700
and so

702
00:23:44,700 --> 00:23:46,766
that means you just change what you're giving away

703
00:23:46,766 --> 00:23:47,766
or how you describe it

704
00:23:47,766 --> 00:23:49,000
so you mean that the things wrong

705
00:23:49,000 --> 00:23:50,700
or how you describe the things wrong

706
00:23:51,100 --> 00:23:52,000
the second reason

707
00:23:52,000 --> 00:23:53,166
somebody doesn't want your free thing

708
00:23:53,166 --> 00:23:54,633
is because they don't believe you

709
00:23:54,633 --> 00:23:56,566
so they it's too good to be true

710
00:23:56,600 --> 00:23:58,466
so I'll give you a story about this

711
00:23:58,466 --> 00:24:00,100
so there was a famous marketer who used to

712
00:24:00,100 --> 00:24:02,500
he used to on the side teach marketing classes

713
00:24:02,566 --> 00:24:03,700
and he talks about believability

714
00:24:03,700 --> 00:24:05,666
and so he would always run this test once a year

715
00:24:05,666 --> 00:24:07,566
where he'd run an ad that says

716
00:24:07,666 --> 00:24:08,700
give me $100

717
00:24:08,700 --> 00:24:10,100
and I will give you a thousand dollars back

718
00:24:10,100 --> 00:24:12,700
call this number and no one would call

719
00:24:12,833 --> 00:24:15,466
and the main reason was no one believed it

720
00:24:15,466 --> 00:24:18,000
it was too good to be true now to be fair

721
00:24:18,000 --> 00:24:22,466
people are dumber now and so maybe it would work now

722
00:24:22,600 --> 00:24:23,766
but when he would run these tests

723
00:24:23,766 --> 00:24:25,633
we'd have to something you know uh

724
00:24:25,633 --> 00:24:27,433
we'd have to run something uh

725
00:24:27,433 --> 00:24:30,366
maybe but like the point hopefully remains all right

726
00:24:30,366 --> 00:24:31,400
the next is

727
00:24:31,966 --> 00:24:33,800
I've seen this split test work

728
00:24:33,800 --> 00:24:35,700
more times than I care for

729
00:24:35,700 --> 00:24:37,366
but if you advertise

730
00:24:37,366 --> 00:24:39,700
something that can help you make an extra $5,000

731
00:24:39,700 --> 00:24:40,033
a month

732
00:24:40,033 --> 00:24:42,366
versus something that helps you make an extra $500

733
00:24:42,366 --> 00:24:44,700
a month this one gets more options

734
00:24:45,200 --> 00:24:45,966
and so you're like

735
00:24:45,966 --> 00:24:49,366
how could a lower result get more people to want it

736
00:24:49,400 --> 00:24:51,766
and it's because more people believe it

737
00:24:53,566 --> 00:24:54,700
kind of interesting

738
00:24:55,400 --> 00:24:57,200
the last reason that people don't want your free thing

739
00:24:57,200 --> 00:24:58,866
is cause it's the wrong people seeing it

740
00:24:58,866 --> 00:25:01,300
so it's like if if I'm getting a free gym membership

741
00:25:01,300 --> 00:25:02,700
that's offered in Ohio

742
00:25:03,266 --> 00:25:04,366
I'm never in Ohio

743
00:25:04,366 --> 00:25:06,800
so I don't really care and so if you're selling

744
00:25:06,800 --> 00:25:09,700
you know fur coats to you know Arizonans in the summer

745
00:25:09,966 --> 00:25:12,500
probably not the right market even if it's like hey

746
00:25:12,500 --> 00:25:12,866
it's free

747
00:25:12,866 --> 00:25:15,333
it's like I'm just never gonna wear it right now

748
00:25:15,400 --> 00:25:16,633
there's intrinsic value to fur coats

749
00:25:16,633 --> 00:25:17,866
but you get the idea alright

750
00:25:17,866 --> 00:25:20,400
and so big 3 is that I like testing this

751
00:25:20,400 --> 00:25:22,033
because if you give stuff away for free

752
00:25:22,033 --> 00:25:23,866
then you know that if people don't want it

753
00:25:24,066 --> 00:25:25,566
you change what it is or how you describe it

754
00:25:25,566 --> 00:25:26,666
they don't believe you can give it to them

755
00:25:26,666 --> 00:25:27,833
or show it to the wrong people

756
00:25:27,833 --> 00:25:30,166
all of these things are great feedback for us

757
00:25:30,966 --> 00:25:33,133
so here are the pros of free

758
00:25:33,233 --> 00:25:35,400
is that you will get more leads for free

759
00:25:35,666 --> 00:25:37,900
and you will get lower cost leads

760
00:25:38,100 --> 00:25:40,200
when you market or advertise with free

761
00:25:40,300 --> 00:25:41,900
here are the cons of free

762
00:25:42,033 --> 00:25:44,366
is that the volume can be a double edged sword

763
00:25:44,366 --> 00:25:45,666
if you're not prepared for it

764
00:25:45,666 --> 00:25:47,066
so if you use some of the stuff in this book

765
00:25:47,066 --> 00:25:47,866
and this training

766
00:25:48,233 --> 00:25:49,566
you're gonna get way more leads than ever

767
00:25:49,566 --> 00:25:50,966
ever used to and so

768
00:25:50,966 --> 00:25:51,566
what'll happen is

769
00:25:51,566 --> 00:25:53,066
you'll get way more people reaching out

770
00:25:53,066 --> 00:25:54,400
and if you don't have the manpower

771
00:25:54,400 --> 00:25:56,000
or the time to reach out to all these leads

772
00:25:56,000 --> 00:25:57,066
it's wasteful

773
00:25:57,300 --> 00:25:59,766
and so what you then do is you can add friction

774
00:25:59,966 --> 00:26:02,566
so you give something for free and then add friction

775
00:26:02,666 --> 00:26:04,300
and so then you can add qualifications

776
00:26:04,300 --> 00:26:05,800
which could be like types of questions

777
00:26:05,800 --> 00:26:07,633
the number of steps in a process

778
00:26:07,633 --> 00:26:10,200
the targeting you do is also another form of friction

779
00:26:10,200 --> 00:26:11,800
you can force them to consume stuff

780
00:26:11,800 --> 00:26:13,300
prior to taking another step

781
00:26:13,300 --> 00:26:15,400
you can increase add length

782
00:26:15,400 --> 00:26:17,300
these are all things that you can do

783
00:26:17,300 --> 00:26:18,700
to increase friction alright

784
00:26:18,700 --> 00:26:19,500
so if you're looking at this

785
00:26:19,500 --> 00:26:20,366
and you're like writing this down

786
00:26:20,366 --> 00:26:20,766
like

787
00:26:20,766 --> 00:26:22,900
these are the steps that you can do to add friction

788
00:26:22,900 --> 00:26:24,600
to any advertising process

789
00:26:24,600 --> 00:26:25,466
and so for me

790
00:26:25,466 --> 00:26:27,766
I don't want to make my ads or my offers worse

791
00:26:27,866 --> 00:26:30,700
I wanna make them better and then add more friction

792
00:26:30,700 --> 00:26:32,166
because fundamentally the idea is like

793
00:26:32,166 --> 00:26:35,066
I wanna get as many people who want this thing

794
00:26:35,066 --> 00:26:37,800
to raise their hand and then put my filters in place

795
00:26:37,800 --> 00:26:40,066
so that only the people with money who are qualified

796
00:26:40,066 --> 00:26:42,900
come through but I want the strongest magnet

797
00:26:42,900 --> 00:26:44,233
to get as many people as possible

798
00:26:44,233 --> 00:26:46,500
to take that first step and then the filter

799
00:26:46,500 --> 00:26:49,400
to cut out as many of the people who I don't want in

800
00:26:49,600 --> 00:26:49,800
that

801
00:26:49,800 --> 00:26:53,633
I got as extra eyeballs or extra clicks for my big

802
00:26:53,633 --> 00:26:54,866
amazing sexy thing

803
00:26:55,966 --> 00:26:57,700
and so the other con of free is that sometimes

804
00:26:57,700 --> 00:26:59,566
you have people who have no intention of buying right

805
00:26:59,566 --> 00:27:02,200
this is the uh the free brings broke people myth

806
00:27:02,200 --> 00:27:04,033
let me see if I actually dive into this deeper OK

807
00:27:04,033 --> 00:27:04,966
I don't so I'll tell you right now

808
00:27:04,966 --> 00:27:06,966
so here's the free brings broke people myth

809
00:27:10,366 --> 00:27:12,100
we tested this

810
00:27:12,166 --> 00:27:15,300
so we have a tremendous amount of data on this concept

811
00:27:15,566 --> 00:27:16,700
um but in gyms

812
00:27:16,700 --> 00:27:19,300
as you might imagine cause I came from the gym world uh

813
00:27:19,300 --> 00:27:20,200
we'd have gym owners saying

814
00:27:20,200 --> 00:27:21,900
I don't wanna give away free service

815
00:27:21,900 --> 00:27:22,400
they'd be like

816
00:27:22,400 --> 00:27:24,633
it undervalues my brand blah blah blah blah blah

817
00:27:24,633 --> 00:27:25,766
whatever OK

818
00:27:26,633 --> 00:27:29,600
so what we did was we ran a test and we said

819
00:27:29,800 --> 00:27:32,600
10 locations run not free

820
00:27:32,600 --> 00:27:34,600
so we're not gonna use free in the advertising

821
00:27:34,866 --> 00:27:37,766
and then you 10 locations use free in the advertising

822
00:27:37,766 --> 00:27:39,266
everything else stays the same

823
00:27:40,466 --> 00:27:41,800
guess what happened

824
00:27:44,233 --> 00:27:49,500
the non free guys closed fewer sales than the free guys

825
00:27:49,500 --> 00:27:51,400
but here's the real kicker

826
00:27:51,900 --> 00:27:53,200
the close rate

827
00:27:53,300 --> 00:27:56,466
between the non free people and the free people was

828
00:27:56,466 --> 00:27:59,633
the same the best sales guys could close

829
00:27:59,633 --> 00:28:00,933
people who came in for free

830
00:28:01,033 --> 00:28:02,466
and the best sales guys could close

831
00:28:02,466 --> 00:28:03,566
people who came in for not

832
00:28:03,566 --> 00:28:05,866
for free and the shitty sales people

833
00:28:05,866 --> 00:28:08,000
couldn't sell anybody who came in for not free

834
00:28:08,000 --> 00:28:10,033
and the shitty sales people couldn't sell anybody

835
00:28:10,033 --> 00:28:12,066
who came in for free so

836
00:28:12,066 --> 00:28:14,766
the only thing that changed between these two things

837
00:28:14,766 --> 00:28:16,533
was the cost of the lead

838
00:28:16,666 --> 00:28:19,066
and so these guys were paying way less per lead

839
00:28:19,066 --> 00:28:20,600
so they made more sales

840
00:28:20,600 --> 00:28:22,900
but the average close rate was the same

841
00:28:22,900 --> 00:28:25,000
we tested this on 20 locations

842
00:28:25,233 --> 00:28:27,600
across different markets so and

843
00:28:27,600 --> 00:28:29,600
and I had to do this every so often

844
00:28:29,600 --> 00:28:32,000
because it would rise up in the community like

845
00:28:32,000 --> 00:28:33,500
we shouldn't be giving away free stuff

846
00:28:33,500 --> 00:28:35,700
I'd be like dude you can do whatever you want

847
00:28:35,700 --> 00:28:38,766
I like to do math and so if the math works

848
00:28:38,900 --> 00:28:41,800
do it if you don't want that fine

849
00:28:41,800 --> 00:28:45,133
do it your way but don't also want a different outcome

850
00:28:46,900 --> 00:28:48,866
so that is the free brings both people myth

851
00:28:49,166 --> 00:28:52,766
is that rich people also like free stuff

852
00:28:52,766 --> 00:28:54,100
and if it's what they want

853
00:28:54,100 --> 00:28:55,033
they'll take a first step

854
00:28:55,033 --> 00:28:56,900
because if you remove risk for me

855
00:28:56,966 --> 00:28:59,600
I'll take a no risk I'll take a I'll take a flyer

856
00:28:59,800 --> 00:29:00,900
I'll take a look

857
00:29:01,100 --> 00:29:04,933
but then if you make a follow up offer foreshadowing uh

858
00:29:05,466 --> 00:29:09,100
I might also buy right and so the closing percentage

859
00:29:09,100 --> 00:29:10,433
the only difference was the lead cost

860
00:29:10,433 --> 00:29:11,366
between those locations

861
00:29:12,000 --> 00:29:12,366
alright so

862
00:29:12,366 --> 00:29:13,100
the bottom line is that

863
00:29:13,100 --> 00:29:14,666
if I had only one offer to make

864
00:29:14,666 --> 00:29:17,266
to convert or my family would be killed

865
00:29:17,900 --> 00:29:19,300
it would be a free offer

866
00:29:19,700 --> 00:29:22,666
and I'd rather wade through crappy leads first

867
00:29:22,666 --> 00:29:24,766
and then figure out how to add friction

868
00:29:24,966 --> 00:29:26,700
rather than look at an empty inbox

869
00:29:26,700 --> 00:29:27,700
and an empty calendar

870
00:29:27,700 --> 00:29:29,600
waiting for my next client to show up

871
00:29:29,966 --> 00:29:31,933
think about this for one more moment

872
00:29:32,166 --> 00:29:34,166
one of my big sayings that I've repeated internally

873
00:29:34,166 --> 00:29:37,200
in terms of advertising is create flow

874
00:29:38,433 --> 00:29:42,166
then monetize then add friction so you create flow

875
00:29:42,166 --> 00:29:44,100
which means give the big sexy thing away

876
00:29:44,100 --> 00:29:45,000
the monetize is

877
00:29:45,000 --> 00:29:46,566
make sure that you're getting the right people on

878
00:29:46,566 --> 00:29:47,266
so you can sell them

879
00:29:47,266 --> 00:29:49,000
now if it's not as efficient as you want

880
00:29:49,000 --> 00:29:50,900
that's the third step that's the optimization

881
00:29:50,900 --> 00:29:53,466
that's the add friction but even inefficiently

882
00:29:53,466 --> 00:29:55,133
we're getting money cool

883
00:29:55,133 --> 00:29:56,566
now we plug the filters in

884
00:29:56,566 --> 00:29:59,033
now we optimize so create flow

885
00:29:59,033 --> 00:30:00,266
monetize add friction

886
00:30:00,266 --> 00:30:03,966
those are the three steps I follow and so the thing is

887
00:30:03,966 --> 00:30:05,900
is you can't optimize an empty inbox

888
00:30:05,900 --> 00:30:07,566
you can't optimize an empty calendar

889
00:30:07,566 --> 00:30:09,500
you can't optimize a funnel that gets no clicks

890
00:30:09,566 --> 00:30:12,900
and so you want to start with the flow first

891
00:30:14,066 --> 00:30:14,866
alright

892
00:30:15,366 --> 00:30:18,100
next point in terms of how to improve CAC is okay

893
00:30:18,100 --> 00:30:19,533
so discounts and free

894
00:30:19,566 --> 00:30:21,500
so these are more or less the same thing

895
00:30:21,500 --> 00:30:22,800
I'm gonna use these interchangeably

896
00:30:22,800 --> 00:30:24,366
throughout the book uh

897
00:30:24,366 --> 00:30:26,200
they really just exist on a continuum

898
00:30:26,266 --> 00:30:29,100
and so 100% discount is free

899
00:30:29,100 --> 00:30:31,466
99% discount is a discount

900
00:30:31,466 --> 00:30:32,266
but fundamentally

901
00:30:32,266 --> 00:30:34,166
it's just a continuum that this exists on

902
00:30:34,166 --> 00:30:35,833
and so all the constructs I use in this book

903
00:30:35,833 --> 00:30:38,233
if it says free you can do it for $1 if it says $1

904
00:30:38,233 --> 00:30:41,533
you can do it for $19 it works the same all right

905
00:30:41,566 --> 00:30:42,466
fundamentally

906
00:30:42,766 --> 00:30:44,466
you get something for less than it's worth

907
00:30:44,466 --> 00:30:46,266
and the arbitrage between its value

908
00:30:46,266 --> 00:30:47,900
and what you get for it is the reason

909
00:30:47,900 --> 00:30:49,800
someone engages my little

910
00:30:49,800 --> 00:30:51,600
my little tip here is

911
00:30:51,600 --> 00:30:54,500
if you have something where it costs a lot of money

912
00:30:54,500 --> 00:30:55,866
for you as a business owner

913
00:30:55,866 --> 00:30:57,433
for somebody to miss an appointment

914
00:30:57,433 --> 00:30:59,366
so let's say you're a dentist or a lawyer

915
00:30:59,800 --> 00:31:01,300
or you're a chiropractor

916
00:31:01,466 --> 00:31:03,400
and it's your time that's being kind of given away

917
00:31:03,400 --> 00:31:04,433
and you charge a lot per hour

918
00:31:04,433 --> 00:31:06,166
whatever then you can have

919
00:31:06,166 --> 00:31:08,866
it might be more advantageous for you to do discounts

920
00:31:09,033 --> 00:31:10,566
because then you can get a card on file

921
00:31:10,566 --> 00:31:11,966
which then makes sure that the people show up

922
00:31:11,966 --> 00:31:12,900
you can charge no show fees

923
00:31:12,900 --> 00:31:15,166
things like that and so if you have too many

924
00:31:15,166 --> 00:31:17,633
like you can solve it in two ways you make it free

925
00:31:17,633 --> 00:31:18,900
you have the first appointment with someone

926
00:31:18,900 --> 00:31:21,466
who's an underling whose time doesn't cost as much

927
00:31:21,466 --> 00:31:22,166
and then from there

928
00:31:22,166 --> 00:31:25,366
you book the one with you option A or option B

929
00:31:25,366 --> 00:31:27,000
you charge some little mini discount thing

930
00:31:27,000 --> 00:31:27,700
so you can get a card

931
00:31:27,700 --> 00:31:30,000
so you can charge enough show to make sure people shop

932
00:31:30,066 --> 00:31:31,066
both work

933
00:31:32,500 --> 00:31:34,900
alright so here's how I use discounts

934
00:31:35,033 --> 00:31:36,100
I don't

935
00:31:36,100 --> 00:31:38,466
I think the idea of a moderate discount is stupid

936
00:31:38,500 --> 00:31:41,766
so the idea of like 10% off or 20% off I think is dumb

937
00:31:41,766 --> 00:31:44,566
I want insane discounts because 10% off doesn't

938
00:31:44,600 --> 00:31:46,600
get someone who would otherwise not opt in

939
00:31:46,600 --> 00:31:49,266
to now opt in it doesn't change behavior

940
00:31:49,266 --> 00:31:51,800
and so the only purpose of freer discount

941
00:31:51,800 --> 00:31:52,966
is to change behavior

942
00:31:52,966 --> 00:31:54,766
is to get people who would not have taken an action

943
00:31:54,766 --> 00:31:56,633
to then take an action as a result

944
00:31:56,633 --> 00:31:58,066
of the freer discount or the

945
00:31:58,066 --> 00:32:00,266
the arbitrage of value all right

946
00:32:00,266 --> 00:32:02,100
and so for me if I'm gonna do discounts

947
00:32:02,100 --> 00:32:04,100
I want 50% or higher

948
00:32:04,100 --> 00:32:06,233
for something that people already know the value of

949
00:32:06,233 --> 00:32:08,566
for it to be effective now

950
00:32:09,100 --> 00:32:10,300
the objective here is to get

951
00:32:10,300 --> 00:32:13,000
people who wouldn't otherwise respond to do so alright

952
00:32:13,000 --> 00:32:15,400
and if you're not giving away 20% off the top

953
00:32:15,400 --> 00:32:16,700
for the same number of people

954
00:32:17,033 --> 00:32:18,500
cause that just means you just lose money

955
00:32:18,500 --> 00:32:20,866
the same number of people reply at 10 or 20% off

956
00:32:20,866 --> 00:32:24,100
you're just losing a ton of profit and so don't worry

957
00:32:24,100 --> 00:32:26,033
I will show you how to do it without giving out

958
00:32:26,033 --> 00:32:27,066
away the farm alright

959
00:32:27,066 --> 00:32:28,766
like you're like wait how am I gonna give it fits

960
00:32:29,233 --> 00:32:32,100
relax that's what this whole thing's about alright

961
00:32:32,100 --> 00:32:34,066
so there's four ways to display discounts

962
00:32:34,066 --> 00:32:37,733
number one is that you can say the percentage off

963
00:32:37,866 --> 00:32:38,100
alright

964
00:32:38,100 --> 00:32:41,966
so let's say it's 87% off the first visit alright

965
00:32:41,966 --> 00:32:43,400
that would be let's say it's a

966
00:32:43,400 --> 00:32:46,300
it's 13 bucks for my hundred dollar first visit

967
00:32:46,300 --> 00:32:49,566
it would be 87% off okay

968
00:32:49,566 --> 00:32:53,866
fine the next way would be the absolute amount off

969
00:32:53,866 --> 00:32:56,400
so it'd be $87 off now in the example here

970
00:32:56,400 --> 00:32:59,700
it's $181 off the first week normally 2 10 fine

971
00:32:59,700 --> 00:33:01,500
that would be 87% all right

972
00:33:01,500 --> 00:33:03,666
but it's a different way of displaying it

973
00:33:03,666 --> 00:33:05,000
and you're like why is he telling me this

974
00:33:05,000 --> 00:33:06,733
because you test these

975
00:33:06,866 --> 00:33:08,700
so if you have your hundred dollar thing

976
00:33:08,700 --> 00:33:13,033
you run 87% off you run $87 off

977
00:33:13,033 --> 00:33:16,066
you then run the relative equivalent off

978
00:33:16,066 --> 00:33:19,666
meaning what is that savings of value worth

979
00:33:20,033 --> 00:33:23,333
all right so like save a steak dinner uh

980
00:33:23,433 --> 00:33:25,100
or less than going out to lunch

981
00:33:25,100 --> 00:33:27,433
it's saying this you wanna you wanna frame it

982
00:33:27,433 --> 00:33:28,800
now a different way of thinking about this

983
00:33:28,800 --> 00:33:30,100
is called a portion off

984
00:33:30,100 --> 00:33:33,100
which um I usually bucket into this

985
00:33:33,100 --> 00:33:34,266
which be like if I had

986
00:33:34,266 --> 00:33:36,666
let's say a hundred dollar a month subscription uh

987
00:33:36,666 --> 00:33:38,266
and the thing was 12 months

988
00:33:38,266 --> 00:33:43,366
so 12 dollars if I if I wanna give 25% off again

989
00:33:43,366 --> 00:33:44,566
we're we're breaking rules here

990
00:33:44,566 --> 00:33:45,500
but uh

991
00:33:45,500 --> 00:33:48,366
if I wanna give 25% off which should be three months

992
00:33:48,433 --> 00:33:50,000
four months off uh

993
00:33:50,066 --> 00:33:52,033
then that would mean that I could say okay

994
00:33:52,033 --> 00:33:55,566
this is $800 I could say it's four months free

995
00:33:55,633 --> 00:33:57,866
I could say it's 25% off

996
00:33:58,066 --> 00:34:00,600
I could say that you get $400 off

997
00:34:01,100 --> 00:34:03,800
those are all different ways of describing the exact

998
00:34:03,800 --> 00:34:07,266
same thing I could also say finally

999
00:34:07,466 --> 00:34:08,800
it's $800

1000
00:34:08,800 --> 00:34:11,566
and above that I would have 12 dollars crossed off

1001
00:34:11,700 --> 00:34:14,300
which is simply displaying the discounted price

1002
00:34:14,566 --> 00:34:16,333
next to the retail value

1003
00:34:16,766 --> 00:34:19,833
these are all different ways that you can display

1004
00:34:19,833 --> 00:34:20,366
a discount

1005
00:34:20,366 --> 00:34:22,833
and so since this book is about monetizing traffic

1006
00:34:22,833 --> 00:34:24,633
you need to know the different guns

1007
00:34:24,633 --> 00:34:25,766
you've got the different weapons

1008
00:34:25,766 --> 00:34:27,033
you've got the bullets in the chamber

1009
00:34:27,033 --> 00:34:30,466
that you can use as an advertiser to rotate through

1010
00:34:30,533 --> 00:34:32,566
to get one more people to respond

1011
00:34:32,566 --> 00:34:35,166
but also to keep the advertising fresh

1012
00:34:35,233 --> 00:34:38,233
so like if one month you run four months free

1013
00:34:38,233 --> 00:34:40,633
and then next month you run $400 off

1014
00:34:40,633 --> 00:34:44,033
and then next month you run $800 crossed off 12

1015
00:34:44,033 --> 00:34:46,166
the market feels like you're changing your offer every

1016
00:34:46,166 --> 00:34:48,200
month but that way internally for you

1017
00:34:48,200 --> 00:34:49,666
everything is the exact same

1018
00:34:49,666 --> 00:34:53,000
but it creates freshness in terms of the advertising

1019
00:34:53,000 --> 00:34:55,200
so how different do all those feel

1020
00:34:55,300 --> 00:34:56,633
they are all the same thing

1021
00:34:56,633 --> 00:34:57,600
just presented different ways

1022
00:34:57,600 --> 00:34:58,666
and that's why we do this

1023
00:34:58,666 --> 00:35:01,766
so this is a little pro tip that I will give you

1024
00:35:01,766 --> 00:35:02,766
you probably can't read this

1025
00:35:02,766 --> 00:35:04,466
I'll just tell you what it says um

1026
00:35:04,466 --> 00:35:09,666
which is that in order for a price off

1027
00:35:09,966 --> 00:35:14,500
or a simply discounted price to work

1028
00:35:14,566 --> 00:35:16,700
the market has to have an understanding

1029
00:35:16,700 --> 00:35:18,433
of what the price of that commodity

1030
00:35:18,433 --> 00:35:19,966
or what that service is

1031
00:35:20,100 --> 00:35:22,700
and so if I say that I'm I'm selling

1032
00:35:22,766 --> 00:35:26,266
you know an adjustment for a chiropractor for $29

1033
00:35:26,466 --> 00:35:27,400
that is effective

1034
00:35:27,400 --> 00:35:29,366
because people know it costs more than that

1035
00:35:29,366 --> 00:35:30,633
they might not know how much more

1036
00:35:30,633 --> 00:35:32,066
but they just know that it's more

1037
00:35:32,066 --> 00:35:33,600
that's cheap for that thing

1038
00:35:33,600 --> 00:35:36,233
if I say 20 dollar teeth whitening at a dentist

1039
00:35:36,233 --> 00:35:37,866
that's gonna get a lot of people who are super

1040
00:35:37,866 --> 00:35:38,066
interested

1041
00:35:38,066 --> 00:35:40,200
cause people know it's way more than 20 dollars

1042
00:35:40,200 --> 00:35:41,633
I could probably say hundred dollar teeth whitening

1043
00:35:41,633 --> 00:35:42,966
and people would still say

1044
00:35:42,966 --> 00:35:44,233
that's a great deal right

1045
00:35:44,233 --> 00:35:45,466
because there's an idea now

1046
00:35:45,466 --> 00:35:47,700
if you have an intangible product or a

1047
00:35:47,700 --> 00:35:49,233
a product that no one else sells

1048
00:35:49,233 --> 00:35:51,100
or it's a digital product or you're like a

1049
00:35:51,100 --> 00:35:53,300
a creator and you wanna launch something

1050
00:35:53,400 --> 00:35:57,333
if you then say it's this price off of this price

1051
00:35:58,100 --> 00:36:00,100
there's not a lot of value because the

1052
00:36:00,100 --> 00:36:02,466
the arbitrage is is arbitrary

1053
00:36:03,066 --> 00:36:05,766
so you made it up and so there's no

1054
00:36:05,766 --> 00:36:08,500
there's no pegged kind of marketplace price

1055
00:36:08,766 --> 00:36:10,366
for the thing that you're selling

1056
00:36:10,433 --> 00:36:12,333
and so in those instances

1057
00:36:12,433 --> 00:36:14,566
that's where percentages off of retail

1058
00:36:14,566 --> 00:36:15,166
things like that

1059
00:36:15,166 --> 00:36:17,000
work a little bit better than just saying like

1060
00:36:17,800 --> 00:36:19,400
seventeen dollar you know

1061
00:36:19,400 --> 00:36:20,033
course it's like

1062
00:36:20,033 --> 00:36:20,466
well that

1063
00:36:20,466 --> 00:36:22,166
that might be expensive for some people

1064
00:36:22,166 --> 00:36:23,433
and cheap for other people

1065
00:36:23,433 --> 00:36:25,033
but for a teeth whitening thing

1066
00:36:25,033 --> 00:36:26,466
everyone knows it's cheap

1067
00:36:27,033 --> 00:36:27,833
and that's why

1068
00:36:27,833 --> 00:36:29,600
if you are gonna put that one price on there

1069
00:36:29,600 --> 00:36:30,666
you wanna do it this is like

1070
00:36:30,666 --> 00:36:32,200
me differentiating for what business owner

1071
00:36:32,200 --> 00:36:33,733
this works for to be clear

1072
00:36:34,466 --> 00:36:35,266
alright

1073
00:36:35,633 --> 00:36:37,700
so here are the pros of discounts

1074
00:36:37,700 --> 00:36:39,166
so we talked about the pros of free stuff

1075
00:36:39,166 --> 00:36:41,366
here are the pros of discounts so uh

1076
00:36:41,700 --> 00:36:44,633
one is that they're compliant for cheap leads

1077
00:36:44,633 --> 00:36:46,633
meaning you don't have to ever worry about like

1078
00:36:46,633 --> 00:36:48,500
anybody saying that you did a bait and switch

1079
00:36:48,500 --> 00:36:49,200
or anything like that

1080
00:36:49,200 --> 00:36:51,166
so if you charge people for stuff

1081
00:36:51,166 --> 00:36:53,666
then there's there's really nothing to say about it

1082
00:36:53,666 --> 00:36:54,066
alright

1083
00:36:54,066 --> 00:36:56,033
number two is that you can actually collect some money

1084
00:36:56,033 --> 00:36:56,866
which is decent right

1085
00:36:56,866 --> 00:36:59,333
I mean some money is better than no money okay

1086
00:36:59,366 --> 00:37:02,400
um people do come expecting to spend some money

1087
00:37:02,400 --> 00:37:05,566
so this to be fair this is my belief on this

1088
00:37:06,266 --> 00:37:08,866
I believe that the reason that the discounted

1089
00:37:08,866 --> 00:37:10,766
people come in and buy more

1090
00:37:10,900 --> 00:37:13,333
is because sales people believe that

1091
00:37:13,633 --> 00:37:15,433
I don't believe it actually has any difference

1092
00:37:15,433 --> 00:37:17,866
because when we talked about the free versus not free

1093
00:37:17,866 --> 00:37:19,300
the close rates were the same

1094
00:37:19,866 --> 00:37:21,800
so I think it's more that sales

1095
00:37:21,800 --> 00:37:22,866
people feel more convicted

1096
00:37:22,866 --> 00:37:24,066
but when I look at the data

1097
00:37:24,066 --> 00:37:25,766
it doesn't make much of a difference

1098
00:37:25,766 --> 00:37:26,966
because I could equally say

1099
00:37:26,966 --> 00:37:28,766
these people were just looking for cheap stuff

1100
00:37:29,300 --> 00:37:31,233
works the same way it just depends on what narrative

1101
00:37:31,233 --> 00:37:33,266
you want to tell the salesperson um

1102
00:37:33,266 --> 00:37:35,566
these work and this is probably the most important one

1103
00:37:35,600 --> 00:37:38,600
these work exceptionally well as two step sales

1104
00:37:39,233 --> 00:37:40,266
here's why

1105
00:37:40,833 --> 00:37:43,700
if you get someone's card before they come in

1106
00:37:43,966 --> 00:37:45,366
then when you when they come in

1107
00:37:45,366 --> 00:37:47,233
you can then make the up sell and say

1108
00:37:47,233 --> 00:37:48,700
do you want to use the card you have on file

1109
00:37:49,033 --> 00:37:50,633
and so the key is that you have the card

1110
00:37:50,633 --> 00:37:52,033
more than what you charge them for

1111
00:37:52,033 --> 00:37:53,300
so it's like you almost want to charge them for

1112
00:37:53,300 --> 00:37:54,566
the cheapest possible thing

1113
00:37:54,566 --> 00:37:55,600
to make sure the card works

1114
00:37:55,600 --> 00:37:56,600
so that when they come in

1115
00:37:56,600 --> 00:37:58,566
you can have a seamless upsell

1116
00:37:58,600 --> 00:38:00,266
into the really expensive thing

1117
00:38:00,266 --> 00:38:01,600
and so that's what creates the

1118
00:38:01,600 --> 00:38:03,066
upsells that are smooth as butter

1119
00:38:03,066 --> 00:38:06,166
point five now here's the cons of discounts

1120
00:38:06,166 --> 00:38:07,800
if you don't do it right you're giving away

1121
00:38:07,800 --> 00:38:09,566
you don't ever give away the core service

1122
00:38:09,566 --> 00:38:11,633
at a discount you give away a break

1123
00:38:11,633 --> 00:38:13,233
broken off piece of the core service

1124
00:38:13,233 --> 00:38:14,266
or something extra that you

1125
00:38:14,266 --> 00:38:16,766
create and then create a huge discount on it alright

1126
00:38:16,766 --> 00:38:19,166
and so you don't give away core offers that has

1127
00:38:19,166 --> 00:38:20,700
or stuff that has hard cost

1128
00:38:20,700 --> 00:38:23,433
unless you like really know what you're doing um

1129
00:38:23,433 --> 00:38:25,633
you splinter out the thing

1130
00:38:25,633 --> 00:38:26,766
now I talk about this at length

1131
00:38:26,766 --> 00:38:27,866
in the hundred million Dollar offers course

1132
00:38:27,866 --> 00:38:29,166
I'm not gonna break it down now

1133
00:38:29,166 --> 00:38:29,966
but basically

1134
00:38:30,033 --> 00:38:31,500
lots of different components to your offer

1135
00:38:31,500 --> 00:38:32,466
you have lots of different features

1136
00:38:32,466 --> 00:38:33,866
you take one feature off

1137
00:38:33,866 --> 00:38:36,833
you say this feature is 99% off now great

1138
00:38:36,833 --> 00:38:37,700
that's where the discount is

1139
00:38:37,700 --> 00:38:39,500
and then you sell the rest of it alright

1140
00:38:39,500 --> 00:38:41,866
and so whatever you break off

1141
00:38:41,866 --> 00:38:43,233
it has to be something that's well understood

1142
00:38:43,233 --> 00:38:44,466
or it's not gonna work alright

1143
00:38:44,466 --> 00:38:45,633
that's kind of the thing I was talking about earlier

1144
00:38:45,633 --> 00:38:47,900
people have to have an understanding of it um

1145
00:38:47,900 --> 00:38:49,566
the cons are you got the bargain operators right

1146
00:38:49,566 --> 00:38:51,166
people who you know complain about this

1147
00:38:51,166 --> 00:38:53,366
but really they they're already you know

1148
00:38:53,566 --> 00:38:54,300
they're already customers

1149
00:38:54,300 --> 00:38:55,666
they're easier to upsell though

1150
00:38:55,666 --> 00:38:58,266
than someone who's cold so yeah

1151
00:38:58,966 --> 00:39:02,333
alright so the objective is that attraction offers

1152
00:39:02,366 --> 00:39:04,300
are the first step in the four prongs

1153
00:39:04,300 --> 00:39:06,833
because if you don't have interest

1154
00:39:06,833 --> 00:39:08,666
you don't have anything right

1155
00:39:08,666 --> 00:39:11,400
and so customer finance acquisition requires demand

1156
00:39:11,700 --> 00:39:13,900
and a big difference between cack and GP

1157
00:39:13,900 --> 00:39:14,666
having low cost

1158
00:39:14,666 --> 00:39:17,200
or free front ends is a strong way to do it

1159
00:39:17,400 --> 00:39:19,000
so lots of demand

1160
00:39:19,166 --> 00:39:23,266
free big front ends drives more in alright

1161
00:39:23,266 --> 00:39:25,833
so these things are going to be interchangeable

1162
00:39:25,833 --> 00:39:27,533
throughout the remainder of these trainings

1163
00:39:27,566 --> 00:39:29,766
so if you see 19 dollar chiropractor visit

1164
00:39:29,766 --> 00:39:32,066
it can be just as much a free chiropractor visit

1165
00:39:32,066 --> 00:39:34,233
the whole thing will work but if you're like

1166
00:39:34,233 --> 00:39:36,100
you insist on doing this fine

1167
00:39:36,100 --> 00:39:38,366
do that if you insist on doing this fine

1168
00:39:38,366 --> 00:39:39,833
do that it does not matter

1169
00:39:39,833 --> 00:39:41,166
all the money models that I will show

1170
00:39:41,166 --> 00:39:43,100
you can have free or discount interchange

1171
00:39:43,100 --> 00:39:44,300
and they will both work

1172
00:39:46,100 --> 00:39:46,800
kaboom

1173
00:39:46,800 --> 00:39:49,200
these are the ways that you can improve your cack

1174
00:39:49,866 --> 00:39:51,666
so with that being said

1175
00:39:51,833 --> 00:39:55,666
cack is covered now we go into gross profit

1176
00:39:58,066 --> 00:40:00,666
gross profit alright let's rock in

1177
00:40:00,666 --> 00:40:02,666
so this is the second of the three metrics

1178
00:40:02,666 --> 00:40:04,600
that we look at to triangulate acquisition

1179
00:40:04,600 --> 00:40:06,866
we started with CAC you have to have cheap customers

1180
00:40:06,866 --> 00:40:08,100
we talked about different ways to improve it

1181
00:40:08,100 --> 00:40:09,033
free your discount

1182
00:40:09,033 --> 00:40:11,000
different ways to display discounts uh

1183
00:40:11,000 --> 00:40:13,866
but now we're gonna talk about gross profit okay

1184
00:40:13,866 --> 00:40:15,033
so we're gonna find what it is

1185
00:40:15,033 --> 00:40:16,200
why it's important examples

1186
00:40:16,200 --> 00:40:17,800
calculating and improving it alright

1187
00:40:17,800 --> 00:40:19,433
let's rock so gross profit

1188
00:40:19,433 --> 00:40:20,666
the difference between the price

1189
00:40:20,833 --> 00:40:22,700
and the cost of goods sold

1190
00:40:22,700 --> 00:40:24,433
so cost of goods or cogs

1191
00:40:24,433 --> 00:40:26,466
is what it cost you to deliver the thing alright

1192
00:40:26,466 --> 00:40:27,800
so if it cost me $9 to deliver meals

1193
00:40:27,800 --> 00:40:30,366
and I sell it for 10 then I got $1 in gross profit

1194
00:40:30,366 --> 00:40:31,600
alright very straight forward

1195
00:40:31,633 --> 00:40:33,166
now here's why this is important

1196
00:40:33,266 --> 00:40:35,166
so the problem is that most businesses

1197
00:40:35,166 --> 00:40:36,666
think they need cheaper leads

1198
00:40:36,666 --> 00:40:37,433
when in reality

1199
00:40:37,433 --> 00:40:39,100
they need to make more money per customer

1200
00:40:39,266 --> 00:40:41,100
and so my observation is that the cack

1201
00:40:41,100 --> 00:40:42,666
this is this is me like high level

1202
00:40:42,666 --> 00:40:43,966
cause I see lots of businesses

1203
00:40:44,633 --> 00:40:47,500
cack between competitors is often fairly similar

1204
00:40:47,500 --> 00:40:48,700
so a lot of people are you know

1205
00:40:48,700 --> 00:40:50,100
obsessing about how they're like

1206
00:40:50,100 --> 00:40:50,400
you know

1207
00:40:50,400 --> 00:40:51,800
they want to improve their ads and things like that

1208
00:40:51,800 --> 00:40:53,400
and sometimes you do need to do that

1209
00:40:53,533 --> 00:40:54,233
but

1210
00:40:54,233 --> 00:40:56,866
the ranges are actually much tighter than you think

1211
00:40:56,866 --> 00:40:58,400
so you might see somebody who's you know

1212
00:40:58,400 --> 00:41:00,166
acquiring customers at twenty five hundred dollars

1213
00:41:00,166 --> 00:41:00,433
somebody

1214
00:41:00,433 --> 00:41:02,033
and somebody else in the marketplace might be 30

1215
00:41:02,033 --> 00:41:02,900
five hundred dollars

1216
00:41:03,066 --> 00:41:05,400
rarely would you see somebody at like $6,000

1217
00:41:05,400 --> 00:41:07,400
unless they're like just getting into the market

1218
00:41:07,400 --> 00:41:09,666
but the cap for specific avatars

1219
00:41:09,666 --> 00:41:11,666
is usually pretty tight in terms of ranges

1220
00:41:11,666 --> 00:41:13,800
when I see many businesses in the same industry

1221
00:41:13,800 --> 00:41:15,200
now that may surprise you

1222
00:41:15,266 --> 00:41:17,533
but that just like kind of is what it is

1223
00:41:17,800 --> 00:41:19,900
but the difference between how much money these

1224
00:41:19,900 --> 00:41:21,000
these companies make

1225
00:41:21,000 --> 00:41:23,166
is often how much customers are worth

1226
00:41:23,166 --> 00:41:23,466
now

1227
00:41:23,466 --> 00:41:26,366
that is where the huge discrepancy between businesses

1228
00:41:26,366 --> 00:41:27,200
exists

1229
00:41:28,166 --> 00:41:28,966
so

1230
00:41:29,866 --> 00:41:31,500
this is the difference between the whales

1231
00:41:31,500 --> 00:41:33,833
and the minnows is how much they make per customer

1232
00:41:33,833 --> 00:41:35,600
gross profit alright

1233
00:41:35,600 --> 00:41:37,366
so let me tell you a quick story

1234
00:41:37,366 --> 00:41:38,900
so I did a consulting day

1235
00:41:38,900 --> 00:41:39,966
years and years and years ago

1236
00:41:39,966 --> 00:41:41,400
this might have been the first five I've ever done

1237
00:41:41,400 --> 00:41:43,000
my whole life um

1238
00:41:43,000 --> 00:41:45,000
and a guy was in the same space as me and you're like

1239
00:41:45,000 --> 00:41:45,500
wait Alex

1240
00:41:45,500 --> 00:41:47,300
why would you help somebody who's a quote competitor

1241
00:41:47,366 --> 00:41:48,866
I don't see the world that way

1242
00:41:48,866 --> 00:41:52,266
so guy came in and he was selling

1243
00:41:52,266 --> 00:41:54,566
the same number of units per month as me

1244
00:41:54,800 --> 00:41:56,966
all right same number of units per month as me

1245
00:41:57,566 --> 00:42:01,000
but I was making 56 times more profit than he was

1246
00:42:01,066 --> 00:42:03,100
that means 56 years of him making

1247
00:42:03,100 --> 00:42:03,866
the amount of money that he made

1248
00:42:03,866 --> 00:42:05,200
is what I made every year

1249
00:42:06,000 --> 00:42:08,200
and so he was making $300,000 a year in profit

1250
00:42:08,200 --> 00:42:10,300
and I was making 17 million a year in profit

1251
00:42:11,000 --> 00:42:13,566
same number of units sold per month

1252
00:42:13,866 --> 00:42:14,200
and so

1253
00:42:14,200 --> 00:42:17,133
the major difference is how much we made per customer

1254
00:42:17,366 --> 00:42:21,166
and so gross profit is the arms race of business

1255
00:42:21,433 --> 00:42:22,233
because the thing is

1256
00:42:22,233 --> 00:42:24,033
is the person who makes the most money

1257
00:42:24,033 --> 00:42:25,900
can spend the most money

1258
00:42:27,266 --> 00:42:29,666
this is how you get an ethical monopoly

1259
00:42:29,866 --> 00:42:33,200
so like you don't have a monopoly from okay

1260
00:42:33,233 --> 00:42:35,166
I'm uh I'm you know

1261
00:42:35,166 --> 00:42:36,633
I'm somehow protecting any

1262
00:42:36,633 --> 00:42:38,066
like no one else can do business

1263
00:42:38,266 --> 00:42:40,533
you're saying you're welcome to do business

1264
00:42:40,866 --> 00:42:44,000
but I'm gonna outspend you on all advertising channels

1265
00:42:44,000 --> 00:42:45,366
so for you to get your word out

1266
00:42:45,366 --> 00:42:46,833
you're gonna have to outbid me

1267
00:42:46,833 --> 00:42:48,833
but because I created a better business model

1268
00:42:48,833 --> 00:42:51,766
I can outspend you in the auction of attention

1269
00:42:51,766 --> 00:42:53,366
this is a Dan quote

1270
00:42:53,400 --> 00:42:55,400
he who can spend the most to acquire a customer wins

1271
00:42:55,466 --> 00:42:56,833
this is my version of the quote

1272
00:42:56,833 --> 00:42:59,466
which is what I of course I like my version uh

1273
00:42:59,466 --> 00:43:02,266
he who makes his customer worth more to his business

1274
00:43:02,266 --> 00:43:04,366
than to his competition wins

1275
00:43:04,533 --> 00:43:06,366
I think about this in terms of what can I do

1276
00:43:06,366 --> 00:43:07,300
so rather than thinking oh

1277
00:43:07,300 --> 00:43:09,866
I can spend I love Dan to be very clear um

1278
00:43:09,900 --> 00:43:10,666
you can spend the most

1279
00:43:10,666 --> 00:43:13,633
it's like it's what do I do in order to spend the most

1280
00:43:13,633 --> 00:43:16,000
what I do is I make my customer more valuable

1281
00:43:16,000 --> 00:43:18,666
the outcome of that input is that I can now spend more

1282
00:43:18,966 --> 00:43:20,866
so these are really just two parts of the same quote

1283
00:43:20,866 --> 00:43:22,400
if this is the precursor to this one

1284
00:43:22,400 --> 00:43:23,600
if that makes sense alright

1285
00:43:23,600 --> 00:43:24,833
so that's why this is important

1286
00:43:24,833 --> 00:43:26,000
so let me give an example

1287
00:43:27,466 --> 00:43:29,966
so I remember when I uh

1288
00:43:30,766 --> 00:43:32,800
I was uh at at at Smoothie King

1289
00:43:32,800 --> 00:43:33,700
I was a blender tender

1290
00:43:33,700 --> 00:43:35,866
and my buddy was reading this article

1291
00:43:35,866 --> 00:43:38,700
in the back of the store probably goofing off

1292
00:43:38,700 --> 00:43:40,166
when we probably shouldn't have been uh

1293
00:43:40,166 --> 00:43:41,400
and he was like dude check this out

1294
00:43:41,400 --> 00:43:43,566
this guy bought a 50,000 dollar burger

1295
00:43:43,666 --> 00:43:45,800
and we looked at it and it was like made of gold

1296
00:43:45,800 --> 00:43:46,800
and whatever crazy

1297
00:43:46,800 --> 00:43:47,833
Wall Street person bought a

1298
00:43:47,833 --> 00:43:49,200
fifty thousand dollar burger right

1299
00:43:49,366 --> 00:43:52,466
and and I was thinking about that

1300
00:43:52,466 --> 00:43:54,666
and I remember the article said something like

1301
00:43:54,666 --> 00:43:57,300
he was making 50 million dollars a year

1302
00:43:57,300 --> 00:43:58,666
or something like that in income

1303
00:43:59,000 --> 00:44:01,800
and so what I ended up doing was

1304
00:44:01,800 --> 00:44:05,800
I started looking at what it cost him in hours

1305
00:44:06,166 --> 00:44:07,833
versus what it cost me in hours

1306
00:44:07,833 --> 00:44:10,666
for the burger that I bought earlier that day

1307
00:44:11,100 --> 00:44:11,633
and so then

1308
00:44:11,633 --> 00:44:16,733
I realized that my 13 dollar burger was the same to me

1309
00:44:16,766 --> 00:44:19,666
as this Wall Street guy's 50,000 dollar burger

1310
00:44:19,766 --> 00:44:20,000
that

1311
00:44:20,000 --> 00:44:23,933
it was actually the same level of inconsequential cost

1312
00:44:24,066 --> 00:44:25,766
for him as it was for me

1313
00:44:25,766 --> 00:44:26,733
and arguably

1314
00:44:26,800 --> 00:44:28,966
this was more expensive for me than it was for him

1315
00:44:28,966 --> 00:44:31,866
just a normal burger and so that

1316
00:44:31,866 --> 00:44:33,866
that concept basically

1317
00:44:33,866 --> 00:44:36,266
is the reverse of the realization that

1318
00:44:36,866 --> 00:44:38,733
you can only go down to zero

1319
00:44:38,900 --> 00:44:40,466
but you can go infinitely high

1320
00:44:40,466 --> 00:44:41,866
when it comes to lifetime value

1321
00:44:42,200 --> 00:44:45,166
and so like you can only drive down so far

1322
00:44:45,166 --> 00:44:47,066
right on on the on the cost side

1323
00:44:47,066 --> 00:44:49,000
but in terms of how much you can make

1324
00:44:49,000 --> 00:44:50,900
that's where you can be as creative as you want

1325
00:44:50,900 --> 00:44:52,766
in terms to continue to increase the lifetime growth

1326
00:44:52,766 --> 00:44:54,266
profit per customer and so

1327
00:44:54,266 --> 00:44:56,000
you can make something as insane

1328
00:44:56,066 --> 00:44:58,033
as paying $50,000 for a burger

1329
00:44:58,033 --> 00:45:01,366
or kack actually still be relatively cheap for you

1330
00:45:01,366 --> 00:45:03,300
if you know how to increase the value of the customer

1331
00:45:03,300 --> 00:45:05,033
and so think of the burgers as the commodity

1332
00:45:05,033 --> 00:45:05,900
which is traffic

1333
00:45:05,900 --> 00:45:07,833
think of our income as the lifetime gross profit

1334
00:45:07,833 --> 00:45:09,266
if I were competing with this guy

1335
00:45:09,266 --> 00:45:10,633
he would be able to outspend me 30

1336
00:45:10,633 --> 00:45:13,600
7 hundred times over and in the auction of attention

1337
00:45:13,600 --> 00:45:14,900
he would outbid me every time

1338
00:45:14,900 --> 00:45:17,466
and our goal is to do the same to our competitors

1339
00:45:18,466 --> 00:45:19,833
alright so you need to look at both sides

1340
00:45:19,833 --> 00:45:20,700
getting customers for less

1341
00:45:20,700 --> 00:45:22,600
but also making them worth more alright

1342
00:45:22,600 --> 00:45:23,500
and before we improve it

1343
00:45:23,500 --> 00:45:24,800
we gotta know how to calculate it

1344
00:45:24,800 --> 00:45:27,033
so here's gross profit how we calculate it

1345
00:45:27,033 --> 00:45:28,266
so here's a product example

1346
00:45:28,266 --> 00:45:30,366
so if I sell a widget for $100

1347
00:45:30,366 --> 00:45:32,600
it cost me 20 bucks to manufacture it

1348
00:45:32,600 --> 00:45:34,400
and ship the widget to the end customer alright

1349
00:45:34,400 --> 00:45:38,400
so my gross profit is 100 where is it 100 - 20

1350
00:45:38,600 --> 00:45:39,366
80 bucks

1351
00:45:39,366 --> 00:45:41,700
this is what's left over this is my gross profit okay

1352
00:45:42,066 --> 00:45:43,433
here's a service example

1353
00:45:43,433 --> 00:45:45,033
let's say I deliver services monthly

1354
00:45:45,033 --> 00:45:47,766
and I have one account representative per 10 customers

1355
00:45:48,033 --> 00:45:50,800
if my clients pay me $3,000 per month each

1356
00:45:50,800 --> 00:45:53,166
and my reps cost me $6,000 per month

1357
00:45:53,166 --> 00:45:56,100
we can then figure out the gross profit margin okay

1358
00:45:56,166 --> 00:45:58,300
so the rep salary is $6,000

1359
00:45:58,300 --> 00:46:00,133
the clients per rep is ten

1360
00:46:00,433 --> 00:46:03,633
the cost per client means it's $600 per client

1361
00:46:03,633 --> 00:46:06,966
remember we make $6,000 divided by 10 clients

1362
00:46:07,066 --> 00:46:08,333
$600 per client

1363
00:46:08,966 --> 00:46:11,766
gross profit alright is now three thousand dollars

1364
00:46:11,766 --> 00:46:14,400
what they pay us minus my cost per client

1365
00:46:14,400 --> 00:46:15,966
which means 24 dollars left over

1366
00:46:15,966 --> 00:46:17,100
the reason I'm going through this is that

1367
00:46:17,100 --> 00:46:18,633
many of you guys watching this are service based

1368
00:46:18,633 --> 00:46:20,666
businesses and don't know your costs

1369
00:46:21,033 --> 00:46:22,266
these are your costs

1370
00:46:22,900 --> 00:46:27,233
so my gross margins are 24 divided by $3,000

1371
00:46:27,233 --> 00:46:31,166
which is 80% rule of thumb from Alex

1372
00:46:31,233 --> 00:46:34,633
if you run a service based business local

1373
00:46:34,633 --> 00:46:36,500
brick and mortar or national

1374
00:46:36,600 --> 00:46:40,133
you want at least an 80% gross profit margin

1375
00:46:40,566 --> 00:46:42,466
now that that may sound crazy to you

1376
00:46:42,466 --> 00:46:45,666
but it is very unlikely that you will scale in service

1377
00:46:45,666 --> 00:46:47,900
unless you have 80 or higher

1378
00:46:48,300 --> 00:46:50,266
so not just a that means that if it cost you 100

1379
00:46:50,266 --> 00:46:51,866
you gotta sell it for 500

1380
00:46:52,033 --> 00:46:53,000
now you might think

1381
00:46:53,000 --> 00:46:54,033
cause if you're a newer business owner

1382
00:46:54,033 --> 00:46:54,500
you're like no

1383
00:46:54,500 --> 00:46:56,500
I that's that seems unreasonable

1384
00:46:57,600 --> 00:46:59,866
that's your gross profit not your net profit

1385
00:46:59,866 --> 00:47:01,233
you still have rent

1386
00:47:01,233 --> 00:47:03,466
you've got you've got your fixed admin cost

1387
00:47:03,466 --> 00:47:05,433
you've got insurance you've got utilities

1388
00:47:05,433 --> 00:47:08,100
you've got break fix that happens within your business

1389
00:47:08,166 --> 00:47:09,566
you've got all these other costs

1390
00:47:09,566 --> 00:47:10,700
that go into doing business

1391
00:47:10,700 --> 00:47:13,066
you're not running 80% net margins

1392
00:47:13,200 --> 00:47:13,700
you're just saying

1393
00:47:13,700 --> 00:47:15,666
this is now all the money I have left over to run

1394
00:47:15,666 --> 00:47:17,833
the rest I still got to spend advertising dollars

1395
00:47:17,833 --> 00:47:19,966
like there's all this money that I still got to spend

1396
00:47:20,100 --> 00:47:21,600
and so if you're if you're at 80

1397
00:47:21,600 --> 00:47:25,866
you might be running a 30% net margin business right

1398
00:47:25,866 --> 00:47:28,066
so just to give you context on this okay

1399
00:47:28,633 --> 00:47:32,033
and so the pro tip is that gross margin equals

1400
00:47:32,033 --> 00:47:34,033
gross profit times 100% so if you ever hear me say

1401
00:47:34,033 --> 00:47:36,600
gross profit versus gross margin uh

1402
00:47:36,633 --> 00:47:37,966
it's just this is a percentage

1403
00:47:37,966 --> 00:47:39,433
this is an absolute that's all it is

1404
00:47:39,433 --> 00:47:41,400
so gross profit is the absolute uh

1405
00:47:41,400 --> 00:47:43,866
gross margin is the percentage that's all it is okay

1406
00:47:43,866 --> 00:47:46,033
so if I say it's 80 bucks in gross profit

1407
00:47:46,033 --> 00:47:48,700
it's 80% gross margins I just I

1408
00:47:48,700 --> 00:47:50,566
I clarify this because if you've ever like

1409
00:47:50,566 --> 00:47:52,466
read stuff and like wait a second is this different

1410
00:47:52,466 --> 00:47:54,166
it's just a different way of measuring the same thing

1411
00:47:54,166 --> 00:47:59,333
that's all it is alright cool so big picture

1412
00:47:59,800 --> 00:48:01,466
this is what the business was

1413
00:48:01,700 --> 00:48:03,266
this is the example I gave visually

1414
00:48:03,266 --> 00:48:04,400
this is the correct visual

1415
00:48:05,700 --> 00:48:06,166
alright

1416
00:48:06,166 --> 00:48:08,633
and you can note that gross profit is not net profit

1417
00:48:08,633 --> 00:48:11,833
alright this is the cost limited to the

1418
00:48:11,833 --> 00:48:12,633
that with the business

1419
00:48:12,633 --> 00:48:15,000
incurs directly from delivering the thing

1420
00:48:15,000 --> 00:48:16,400
so if you had an administrative assistant

1421
00:48:16,400 --> 00:48:17,633
and you sell cups for $10

1422
00:48:17,633 --> 00:48:18,600
they cost you $2

1423
00:48:18,600 --> 00:48:20,800
we wouldn't factor in your administrative assistant

1424
00:48:20,800 --> 00:48:22,500
into the $8 of gross profit

1425
00:48:22,633 --> 00:48:23,233
it's off

1426
00:48:23,233 --> 00:48:25,566
the gross profit that we eventually pay for everything

1427
00:48:25,566 --> 00:48:27,700
else in the business to create our net profit

1428
00:48:27,700 --> 00:48:30,466
aka what's left over at the end of the month alright

1429
00:48:30,466 --> 00:48:32,566
so your rent doesn't go into your gross profit

1430
00:48:32,566 --> 00:48:34,233
your admin cost don't go into your gross profit

1431
00:48:34,233 --> 00:48:35,966
your utilities don't go into your gross profit

1432
00:48:36,033 --> 00:48:37,300
it's just the cost of okay

1433
00:48:37,300 --> 00:48:38,633
if I sold another one of these

1434
00:48:38,633 --> 00:48:41,833
if I sold another customer what are the variable cost

1435
00:48:41,833 --> 00:48:44,666
what are the cost that go up per unit sold

1436
00:48:44,766 --> 00:48:46,566
if your rent doesn't go up per unit sold

1437
00:48:46,566 --> 00:48:48,433
if your admin cost doesn't go up per unit sold

1438
00:48:48,433 --> 00:48:50,466
then it is not factored into gross profit

1439
00:48:50,766 --> 00:48:52,766
but if my hard cost of cups

1440
00:48:52,766 --> 00:48:53,466
if I sell another cup

1441
00:48:53,466 --> 00:48:55,500
I still have to incur that cost if I

1442
00:48:55,500 --> 00:48:57,400
if I have a if I have to sell another client

1443
00:48:57,400 --> 00:48:59,300
then a certain portion of my resources

1444
00:48:59,300 --> 00:49:00,633
of client delivery

1445
00:49:00,633 --> 00:49:02,666
is gonna get allocated to that next client

1446
00:49:03,066 --> 00:49:03,966
now some people like wait

1447
00:49:03,966 --> 00:49:06,500
but I have to pay my person either way

1448
00:49:06,500 --> 00:49:07,633
not really I mean

1449
00:49:07,633 --> 00:49:10,200
you do up to 20 and then you have to hire another one

1450
00:49:10,200 --> 00:49:11,900
and so you just have to fractionalize it

1451
00:49:11,900 --> 00:49:13,100
in terms of your thinking

1452
00:49:13,200 --> 00:49:14,266
so it may feel fixed

1453
00:49:14,266 --> 00:49:17,400
but it's not you just have to you have chunkier um

1454
00:49:17,566 --> 00:49:20,966
start stops more than it's a fixed cost

1455
00:49:20,966 --> 00:49:23,366
if that makes sense when it comes to calculating this

1456
00:49:24,400 --> 00:49:25,366
so you're like okay

1457
00:49:25,366 --> 00:49:26,900
got it I have mine and mine sucks

1458
00:49:26,900 --> 00:49:28,100
so what do I do to improve it

1459
00:49:28,233 --> 00:49:29,433
so improving gross profit

1460
00:49:29,433 --> 00:49:33,000
there's a lot of ways to increase gross profits um

1461
00:49:33,200 --> 00:49:35,600
but without altering price or cost structure

1462
00:49:35,600 --> 00:49:38,066
the three easiest to remember are more better new

1463
00:49:38,100 --> 00:49:40,300
alright which is sell more of the stuff

1464
00:49:40,300 --> 00:49:42,466
so more quantity or duration of the thing

1465
00:49:42,466 --> 00:49:44,700
so get them to buy in bulk or buy again tomorrow

1466
00:49:44,800 --> 00:49:47,166
sell a better quality version of the thing

1467
00:49:47,166 --> 00:49:48,233
so that would be like

1468
00:49:48,233 --> 00:49:50,500
a regular burger versus an organic burger

1469
00:49:50,500 --> 00:49:52,800
or a large group versus personal training

1470
00:49:52,800 --> 00:49:55,066
better version of the thing or sell a new thing

1471
00:49:55,066 --> 00:49:57,133
so you fries and a Coke

1472
00:49:57,166 --> 00:49:59,200
which then you can supersize on quantity and quality

1473
00:49:59,200 --> 00:50:00,366
as on top of that

1474
00:50:00,600 --> 00:50:02,233
that's the that's the quick and dirty

1475
00:50:02,233 --> 00:50:03,600
we're gonna get into lots of different versions

1476
00:50:03,600 --> 00:50:06,933
of this alright so that is gross profit

1477
00:50:08,833 --> 00:50:10,466
we talked about the three things for acquisition

1478
00:50:10,466 --> 00:50:12,700
so we've got cost you a car customer

1479
00:50:12,700 --> 00:50:14,166
how much it costs us gross profit

1480
00:50:14,166 --> 00:50:15,600
what we make for what it costs us

1481
00:50:15,600 --> 00:50:17,000
and now we go to payback period

1482
00:50:17,000 --> 00:50:19,766
which is how fast this all happens so if you see PDD

1483
00:50:19,766 --> 00:50:21,233
just payback period or payback period

1484
00:50:21,233 --> 00:50:22,166
I'll probably say it out loud

1485
00:50:22,166 --> 00:50:24,233
cause I don't Wanna confuse you alright

1486
00:50:24,233 --> 00:50:26,266
so we got the definition why it's important

1487
00:50:26,266 --> 00:50:27,700
examples and then how to improve it

1488
00:50:27,700 --> 00:50:29,800
let's start with definition so payback period

1489
00:50:29,800 --> 00:50:32,366
how long it takes until gross profit is greater than

1490
00:50:32,366 --> 00:50:33,166
cack

1491
00:50:34,500 --> 00:50:36,966
in other words how long does it take to break even

1492
00:50:37,633 --> 00:50:38,566
the shorter it is

1493
00:50:38,566 --> 00:50:40,166
the easier it is to scale your advertising

1494
00:50:40,166 --> 00:50:41,366
so if I break even in a day

1495
00:50:41,366 --> 00:50:43,000
versus breaking even in 5 years

1496
00:50:43,000 --> 00:50:45,033
it's a lot easier for me to scale right

1497
00:50:45,033 --> 00:50:46,166
cause I get my dollar back tomorrow

1498
00:50:46,166 --> 00:50:47,266
then I can spend it again

1499
00:50:47,566 --> 00:50:49,500
some people call this a cash conversion cycle

1500
00:50:49,500 --> 00:50:50,666
I probably won't say that again

1501
00:50:50,666 --> 00:50:51,566
but just in case you hear it

1502
00:50:51,566 --> 00:50:53,166
that's what that means alright

1503
00:50:53,166 --> 00:50:56,800
so that's the definition here's the importance alright

1504
00:50:56,800 --> 00:51:00,000
so problem No. 1 businesses take too long

1505
00:51:00,000 --> 00:51:01,766
to break even on getting new customers

1506
00:51:01,966 --> 00:51:03,666
and so they have to manage cash flow

1507
00:51:03,666 --> 00:51:05,566
by making a marketing budget

1508
00:51:06,033 --> 00:51:07,666
I think this is silly

1509
00:51:08,233 --> 00:51:10,666
we solve that problem problem No. 2

1510
00:51:10,666 --> 00:51:12,500
is that businesses feel guilty

1511
00:51:12,500 --> 00:51:14,000
making multiple offers in a row

1512
00:51:14,000 --> 00:51:15,900
because they think that they bother people

1513
00:51:15,900 --> 00:51:18,600
they are wrong the people who feel this way are poorer

1514
00:51:18,600 --> 00:51:19,600
than they should be

1515
00:51:20,066 --> 00:51:23,100
and that's exactly how buyers buy by the way

1516
00:51:23,100 --> 00:51:25,100
is that there's short windows of time

1517
00:51:25,100 --> 00:51:27,566
that they go super hyper buying cycle

1518
00:51:27,566 --> 00:51:29,100
and then they go dormant again

1519
00:51:29,200 --> 00:51:29,466
and so

1520
00:51:29,466 --> 00:51:31,666
if you do not take advantage of this hyper buying cycle

1521
00:51:31,666 --> 00:51:32,800
when someone makes a new decision

1522
00:51:32,800 --> 00:51:33,700
or starts a new lifestyle

1523
00:51:33,700 --> 00:51:35,600
or make creates a new identity for themselves

1524
00:51:35,600 --> 00:51:36,433
you will miss out

1525
00:51:36,433 --> 00:51:37,966
and another business who is intelligent

1526
00:51:37,966 --> 00:51:39,566
who makes more money than you will profit

1527
00:51:40,700 --> 00:51:43,700
so here's a story you probably haven't heard from me

1528
00:51:43,766 --> 00:51:46,166
so a friend of mine

1529
00:51:46,300 --> 00:51:49,466
business owner decides to lose weight and uh

1530
00:51:49,800 --> 00:51:51,333
remembers that they like riding bikes

1531
00:51:51,433 --> 00:51:53,666
and goes online to buy a bike

1532
00:51:53,666 --> 00:51:54,966
all right now

1533
00:51:54,966 --> 00:51:57,666
this is what happens after she immediately buys a bike

1534
00:51:58,366 --> 00:52:00,500
she enters a hyperactive buying mode

1535
00:52:00,500 --> 00:52:02,100
she then buys a helmet she buys shoes

1536
00:52:02,100 --> 00:52:03,800
she buys pants she buys gloves she buys water bottle

1537
00:52:03,800 --> 00:52:05,566
she buy she signs up for a race

1538
00:52:05,833 --> 00:52:08,566
you get the idea all within a day or two

1539
00:52:08,566 --> 00:52:11,800
now if you were that first bike shop owner

1540
00:52:11,833 --> 00:52:12,666
and you were like well

1541
00:52:12,666 --> 00:52:14,600
I don't want to offer a helmet

1542
00:52:14,600 --> 00:52:16,533
I don't want to offer shoes

1543
00:52:16,733 --> 00:52:18,800
I don't wanna offer I don't wanna seem pushy

1544
00:52:19,366 --> 00:52:22,100
she wants to buy them she signed up for a race

1545
00:52:22,100 --> 00:52:24,433
she's going she's going to buy them

1546
00:52:24,433 --> 00:52:26,066
it's just whether she's gonna buy them from you

1547
00:52:26,066 --> 00:52:27,433
or the guy down the street

1548
00:52:27,433 --> 00:52:30,300
and there's a very big difference between hard selling

1549
00:52:30,300 --> 00:52:31,666
and letting a customer know

1550
00:52:31,666 --> 00:52:33,466
the offers you have available

1551
00:52:33,466 --> 00:52:36,966
you're making offers available to them and if you have

1552
00:52:36,966 --> 00:52:39,566
think about it this way if someone has a problem

1553
00:52:39,566 --> 00:52:41,266
and you have the ability to solve it

1554
00:52:41,266 --> 00:52:43,233
it's my opinion that ethically

1555
00:52:43,233 --> 00:52:45,166
you should let them know you can solve it

1556
00:52:45,166 --> 00:52:47,866
and what it would cost them for you to do it for them

1557
00:52:47,866 --> 00:52:50,066
you make them aware if they say no

1558
00:52:50,066 --> 00:52:53,566
no problem fine but at least tell them

1559
00:52:53,566 --> 00:52:57,166
make the offer because you sell

1560
00:52:57,166 --> 00:53:00,400
0% of people who don't know you have something to sell

1561
00:53:01,700 --> 00:53:03,066
you are making offers

1562
00:53:03,066 --> 00:53:04,266
they can choose to take them or not

1563
00:53:04,266 --> 00:53:05,366
and if you believe in what you solve

1564
00:53:05,366 --> 00:53:08,966
solves a problem then solve more problems yes is cool

1565
00:53:09,000 --> 00:53:14,066
no also knock also also not cool yes also cool alright

1566
00:53:14,066 --> 00:53:14,700
so that's the important

1567
00:53:14,700 --> 00:53:17,166
so let's do a quick example so payback periods

1568
00:53:17,166 --> 00:53:20,500
so if it cost you $160 to acquire a customer hack

1569
00:53:20,566 --> 00:53:22,233
and you sell a widget for $100 a month

1570
00:53:22,233 --> 00:53:23,866
that cost you 20 bucks gross profit

1571
00:53:23,866 --> 00:53:26,133
so $80 what's your payback period

1572
00:53:26,800 --> 00:53:27,266
we make

1573
00:53:27,266 --> 00:53:30,866
$100 from the the person who buys their first month

1574
00:53:30,866 --> 00:53:33,400
our gross profit is 80 cause we have to have 20 bucks

1575
00:53:33,400 --> 00:53:35,100
that are off for cost of goods

1576
00:53:35,100 --> 00:53:36,800
so that means that I spent one 60

1577
00:53:36,800 --> 00:53:38,000
but I made 100 back

1578
00:53:38,000 --> 00:53:40,600
but I had another cost of 20 for my cost of goods

1579
00:53:40,600 --> 00:53:42,800
so I have 80 dollars left over sorry

1580
00:53:42,800 --> 00:53:45,900
let uh I'm down 80 month one alright

1581
00:53:45,900 --> 00:53:48,466
so let's look at month two month two

1582
00:53:48,466 --> 00:53:50,266
I didn't have my cost to acquire the customer

1583
00:53:50,266 --> 00:53:51,700
I still have my cost to deliver

1584
00:53:51,700 --> 00:53:54,233
I make my hundred minus my 20 cost to deliver

1585
00:53:54,233 --> 00:53:57,566
I have another 80 so now I'm at zero okay

1586
00:53:57,566 --> 00:53:59,866
so month two is my break even month

1587
00:54:00,466 --> 00:54:02,366
so what's my payback period

1588
00:54:03,066 --> 00:54:06,266
two months also to be really clear here

1589
00:54:06,400 --> 00:54:08,833
if it cost you 160 bucks to acquire a customer

1590
00:54:08,833 --> 00:54:09,466
some people are like

1591
00:54:09,466 --> 00:54:12,200
it takes me one and a half months to break even here

1592
00:54:12,200 --> 00:54:13,633
because they see $100 in revenue

1593
00:54:13,633 --> 00:54:15,166
they say oh it's one and a half months

1594
00:54:15,500 --> 00:54:17,200
you have to take out your cost of goods

1595
00:54:17,200 --> 00:54:20,433
in the payback period if it cost me $9 in meals

1596
00:54:20,433 --> 00:54:21,966
and I sell it 10 bucks for the meal

1597
00:54:21,966 --> 00:54:23,633
I make a dollar I can't say oh

1598
00:54:23,633 --> 00:54:25,900
you know they paid me 20 bucks it cost me 20

1599
00:54:25,900 --> 00:54:27,033
I break even in two months

1600
00:54:27,033 --> 00:54:29,200
you have to do it off gross profit alright

1601
00:54:29,200 --> 00:54:30,400
so here's how to improve it

1602
00:54:30,433 --> 00:54:32,433
you can make them more better or new offers

1603
00:54:32,433 --> 00:54:34,933
and here's the key part in the first 30 days

1604
00:54:35,166 --> 00:54:37,600
and the key part is to it to do it at the right moment

1605
00:54:37,600 --> 00:54:39,166
the reason that somebody will not take an upsell

1606
00:54:39,166 --> 00:54:39,633
from you is

1607
00:54:39,633 --> 00:54:40,966
cause you did it the wrong way

1608
00:54:40,966 --> 00:54:41,866
or at the wrong time

1609
00:54:41,866 --> 00:54:45,000
or you described it poorly or to the wrong person right

1610
00:54:45,033 --> 00:54:47,366
and so let me give you the supplement sale example

1611
00:54:47,700 --> 00:54:49,633
this is just a zone in on timing

1612
00:54:49,633 --> 00:54:51,200
presenting it at the right time

1613
00:54:51,366 --> 00:54:52,433
so I say this

1614
00:54:52,433 --> 00:54:54,166
because some of you might have an amazing up

1615
00:54:54,166 --> 00:54:55,000
sell offer you just

1616
00:54:55,000 --> 00:54:58,000
you're just presenting it not when the problem uh

1617
00:54:58,000 --> 00:54:58,800
exists

1618
00:54:59,433 --> 00:55:00,900
alright or creates itself

1619
00:55:01,066 --> 00:55:03,400
so I tried to sell supplements

1620
00:55:03,800 --> 00:55:06,133
after people bought services from me

1621
00:55:06,166 --> 00:55:07,366
and it didn't work now

1622
00:55:07,366 --> 00:55:08,966
I can give you a whole bunch of theories around that

1623
00:55:08,966 --> 00:55:10,500
someone comes in saying they want to lose weight

1624
00:55:10,500 --> 00:55:11,366
and I say awesome

1625
00:55:11,366 --> 00:55:12,500
let's get you signed up

1626
00:55:12,500 --> 00:55:14,500
and then right then after they signed up I say oh

1627
00:55:14,500 --> 00:55:15,366
by the way

1628
00:55:15,366 --> 00:55:16,766
buy these supplements and you might think wait

1629
00:55:16,766 --> 00:55:18,166
isn't that a hyper buying cycle

1630
00:55:18,166 --> 00:55:18,900
it's my belief

1631
00:55:18,900 --> 00:55:20,933
that the person scratched their itch of weight loss

1632
00:55:21,066 --> 00:55:23,100
the moment I sold them the service package

1633
00:55:23,100 --> 00:55:25,766
and now I'm like trying to reopen a closed wound

1634
00:55:25,766 --> 00:55:27,200
kind of it's like wait

1635
00:55:27,200 --> 00:55:29,800
I thought I just solved that problem right

1636
00:55:30,033 --> 00:55:32,700
so what I figured out was I would say hey

1637
00:55:32,700 --> 00:55:34,800
come in for a nutrition orientation

1638
00:55:35,033 --> 00:55:36,200
and then 48 hours later

1639
00:55:36,200 --> 00:55:37,433
they come in for nutrition orientations

1640
00:55:37,433 --> 00:55:39,200
and then I would walk through their food

1641
00:55:39,700 --> 00:55:41,633
and so with the food then I would say

1642
00:55:41,633 --> 00:55:43,066
oh you're not eating these things

1643
00:55:43,066 --> 00:55:44,466
you should probably add this stuff in

1644
00:55:44,466 --> 00:55:45,700
I created a new problem

1645
00:55:45,700 --> 00:55:47,966
which I could then solve with supplements

1646
00:55:48,266 --> 00:55:49,233
and so the thing is

1647
00:55:49,233 --> 00:55:51,700
is that you wanna be able to offer it at the right time

1648
00:55:51,700 --> 00:55:54,300
you sell at the point of greatest deprivation

1649
00:55:54,300 --> 00:55:56,300
not at the point of greatest satisfaction

1650
00:55:57,166 --> 00:55:58,200
oh really like

1651
00:55:59,466 --> 00:56:01,200
advance people know what I just said

1652
00:56:01,200 --> 00:56:02,900
beginners please hear that again

1653
00:56:03,166 --> 00:56:05,400
you sell at the point of greatest deprivation

1654
00:56:05,400 --> 00:56:07,133
at the point of greatest pain

1655
00:56:07,400 --> 00:56:09,666
not at the point of greatest satisfaction

1656
00:56:09,966 --> 00:56:13,300
if I just had a big steak dinner and then you say

1657
00:56:13,300 --> 00:56:14,300
do you want another steak

1658
00:56:14,300 --> 00:56:15,400
you might have amazing steak

1659
00:56:15,400 --> 00:56:16,400
I don't need any more steak

1660
00:56:16,400 --> 00:56:17,600
I'm satisfied

1661
00:56:17,966 --> 00:56:19,700
and a lot of you guys are trying to make your upsell

1662
00:56:19,700 --> 00:56:20,366
offer after

1663
00:56:20,366 --> 00:56:21,533
I already ate a steak

1664
00:56:22,166 --> 00:56:25,100
now I might have a dessert stomach that's open

1665
00:56:25,466 --> 00:56:27,766
but my steak stomach is full

1666
00:56:28,233 --> 00:56:30,066
so we create deprivation

1667
00:56:30,066 --> 00:56:31,800
we make offers at the moment of deprivation

1668
00:56:31,800 --> 00:56:33,500
if somebody's really thirsty in the desert

1669
00:56:33,866 --> 00:56:35,500
after you give them the cup of water

1670
00:56:35,600 --> 00:56:36,433
they don't want the second cup

1671
00:56:36,433 --> 00:56:37,700
as much as they wanted the first one

1672
00:56:37,700 --> 00:56:40,066
so the timing matters so

1673
00:56:40,066 --> 00:56:41,866
these are the times that I think through

1674
00:56:41,866 --> 00:56:43,733
when I tend to incorporate upsells

1675
00:56:44,000 --> 00:56:46,500
and this is important for decreasing payback period

1676
00:56:46,500 --> 00:56:49,466
so one is right immediately after the first sale

1677
00:56:49,466 --> 00:56:50,633
sometimes this works great

1678
00:56:50,633 --> 00:56:51,600
so to be clear

1679
00:56:51,600 --> 00:56:56,033
if I'm selling if if that new if I solved one problem

1680
00:56:56,033 --> 00:56:58,200
that then naturally creates the next problem

1681
00:56:58,200 --> 00:56:59,933
immediately upselling works

1682
00:57:00,600 --> 00:57:02,700
if you have to create another

1683
00:57:02,700 --> 00:57:04,100
kind of problem in someone's head

1684
00:57:04,100 --> 00:57:06,366
or guide them through awareness

1685
00:57:06,500 --> 00:57:09,100
then that's where you have what I call the next step

1686
00:57:09,100 --> 00:57:11,466
so the version I just gave you with the orientation

1687
00:57:11,466 --> 00:57:12,200
the nutrition orientation

1688
00:57:12,200 --> 00:57:14,166
that's like great that's the next step in the process

1689
00:57:14,200 --> 00:57:16,666
so this is usually a 24 48

1690
00:57:16,666 --> 00:57:20,200
72 hour difference between first sale and next step

1691
00:57:21,100 --> 00:57:22,900
the next time period where I think about selling

1692
00:57:22,900 --> 00:57:25,166
a customer up selling is after they have a big win

1693
00:57:25,166 --> 00:57:26,866
this is a milestone someone says

1694
00:57:26,866 --> 00:57:27,066
you know

1695
00:57:27,066 --> 00:57:29,233
they have some big success now you're like wait

1696
00:57:29,233 --> 00:57:30,266
I thought you said you sell

1697
00:57:30,266 --> 00:57:33,000
the point of greatest deprivation yes

1698
00:57:33,000 --> 00:57:34,166
so if they have a big success

1699
00:57:34,166 --> 00:57:36,233
then it means we fully solved one problem

1700
00:57:36,233 --> 00:57:39,100
which typically means a fully formed new problem

1701
00:57:39,100 --> 00:57:41,000
also opened so great

1702
00:57:41,000 --> 00:57:42,266
you got to $10,000 a month

1703
00:57:42,266 --> 00:57:44,033
you probably have all these tax problems now

1704
00:57:44,033 --> 00:57:45,566
and you probably need employees to help you

1705
00:57:45,566 --> 00:57:46,100
take all this time

1706
00:57:46,100 --> 00:57:47,400
because now that you're working all the time

1707
00:57:47,400 --> 00:57:48,100
and you're making this money

1708
00:57:48,100 --> 00:57:49,500
you probably don't have time you have money

1709
00:57:49,500 --> 00:57:50,066
but not time

1710
00:57:50,066 --> 00:57:51,900
so let me solve the next problem for you right

1711
00:57:51,900 --> 00:57:52,233
and so you

1712
00:57:52,233 --> 00:57:54,433
can all there's always if you're a good entrepreneur

1713
00:57:54,433 --> 00:57:55,566
you're always solving problems

1714
00:57:55,566 --> 00:57:58,666
and fully solve problems always create more problems

1715
00:57:59,900 --> 00:58:01,000
after they have a big win

1716
00:58:01,000 --> 00:58:02,766
then I like to think about the halfway point

1717
00:58:02,766 --> 00:58:04,066
this is just me historically

1718
00:58:04,066 --> 00:58:05,300
seeing that people at a halfway point

1719
00:58:05,300 --> 00:58:06,900
tend to be very open to upselling

1720
00:58:07,000 --> 00:58:07,766
and finally

1721
00:58:07,766 --> 00:58:09,466
I call this the last chance now if you're like

1722
00:58:09,466 --> 00:58:11,300
wait a second at the end of a

1723
00:58:11,300 --> 00:58:13,533
of a period with a customer is the last chance

1724
00:58:13,566 --> 00:58:15,766
not when I should upsell yeah

1725
00:58:16,233 --> 00:58:18,700
if you haven't up sold them here

1726
00:58:19,266 --> 00:58:22,000
so so many of you guys are trying to make your up sell

1727
00:58:22,000 --> 00:58:23,800
at the end of the first thing

1728
00:58:23,833 --> 00:58:27,366
you've already lost them like this is your last shot

1729
00:58:27,600 --> 00:58:29,300
you missed all of the other times

1730
00:58:29,300 --> 00:58:30,266
that you're supposed to sell them

1731
00:58:30,266 --> 00:58:30,900
and notice

1732
00:58:30,900 --> 00:58:33,600
four out of the five are before the halfway point

1733
00:58:34,866 --> 00:58:39,000
so you're losing out so I can almost guarantee well

1734
00:58:39,000 --> 00:58:41,200
I'll say this way I have never not had this work

1735
00:58:41,200 --> 00:58:43,466
so I can't guarantee it but I've never not had it work

1736
00:58:43,500 --> 00:58:45,433
which is if this is when you're upselling people

1737
00:58:45,433 --> 00:58:46,600
or attempting to upselling

1738
00:58:46,600 --> 00:58:48,200
because I already know you're probably failing at it

1739
00:58:48,866 --> 00:58:51,866
if you move it forward in the sales process

1740
00:58:51,866 --> 00:58:54,600
in my opinion you have an incomplete buying cycle

1741
00:58:54,600 --> 00:58:56,566
so I don't want to reopen something

1742
00:58:56,566 --> 00:58:58,600
I want to just ride the one I'm already on it's like

1743
00:58:58,600 --> 00:59:00,500
hey you're halfway through let's keep the party going

1744
00:59:00,500 --> 00:59:01,633
hey you're doing great

1745
00:59:01,633 --> 00:59:02,766
let's let's keep it going

1746
00:59:02,766 --> 00:59:04,466
let's let's add this other piece of service on

1747
00:59:04,466 --> 00:59:04,900
hey let's

1748
00:59:04,900 --> 00:59:06,800
let's get you there faster right

1749
00:59:06,800 --> 00:59:08,233
let's let's decrease your risk around this

1750
00:59:08,233 --> 00:59:09,400
let me just get you more support

1751
00:59:09,400 --> 00:59:10,800
whatever it is right

1752
00:59:10,800 --> 00:59:11,966
we wanna keep the party going

1753
00:59:11,966 --> 00:59:13,566
I don't wanna finish my service package

1754
00:59:13,566 --> 00:59:15,033
and then have to be like okay

1755
00:59:15,033 --> 00:59:16,600
now that you've completed our first

1756
00:59:16,600 --> 00:59:18,033
you know service of work

1757
00:59:18,033 --> 00:59:20,466
let's talk about working together again

1758
00:59:20,466 --> 00:59:21,266
it's like ah

1759
00:59:21,833 --> 00:59:23,600
I'm good with what you gave me before

1760
00:59:23,600 --> 00:59:25,000
you know I'm pretty happy with that

1761
00:59:25,000 --> 00:59:25,866
this is cool

1762
00:59:26,400 --> 00:59:26,900
alright

1763
00:59:26,900 --> 00:59:29,966
so there's the five times I think about selling now

1764
00:59:30,833 --> 00:59:33,433
again make more better new offers the first 30 days

1765
00:59:33,433 --> 00:59:35,300
these are the five so

1766
00:59:35,366 --> 00:59:36,033
immediately

1767
00:59:36,033 --> 00:59:37,766
in the same conversation or conversion event

1768
00:59:37,766 --> 00:59:39,666
next step is 24 to 72 hours

1769
00:59:39,666 --> 00:59:40,400
first big win

1770
00:59:40,400 --> 00:59:41,833
this means you focus on getting them fast wins

1771
00:59:41,833 --> 00:59:43,000
so that you then create new problems

1772
00:59:43,000 --> 00:59:45,666
that you can then solve halfway point um

1773
00:59:45,666 --> 00:59:47,066
this is just I just

1774
00:59:47,066 --> 00:59:48,566
I'm telling you it just it just has worked

1775
00:59:48,566 --> 00:59:49,833
so I'll just throw it out there

1776
00:59:49,833 --> 00:59:52,033
I give you some scientific whatever thing

1777
00:59:52,033 --> 00:59:53,333
but I just know it works

1778
00:59:53,366 --> 00:59:55,866
and then last chance is the exit interview right

1779
00:59:55,866 --> 00:59:56,400
and uh

1780
00:59:56,400 --> 00:59:58,400
this is only useful for payback periods

1781
00:59:58,400 --> 00:59:59,633
if it's within the first 30 days

1782
00:59:59,633 --> 01:00:02,000
but pretty much all of these ones uh

1783
01:00:02,033 --> 01:00:03,900
apply most of the times within the first 30

1784
01:00:03,900 --> 01:00:05,100
days the customer coming in

1785
01:00:06,000 --> 01:00:07,400
these are some easy ways to do this

1786
01:00:07,400 --> 01:00:10,033
you can have somebody pay first and last month today

1787
01:00:10,033 --> 01:00:11,633
or you can add an initiation fee

1788
01:00:11,633 --> 01:00:13,033
an onboarding fee an enrollment fee

1789
01:00:13,033 --> 01:00:15,533
or an activation fee or make up whatever fee you want

1790
01:00:15,666 --> 01:00:17,633
you too can have this power uh

1791
01:00:17,633 --> 01:00:19,633
you just you just add that on

1792
01:00:19,633 --> 01:00:21,966
so if I wanted to improve that one I had earlier

1793
01:00:21,966 --> 01:00:24,733
if I didn't want to wait two months I would say great

1794
01:00:24,766 --> 01:00:27,400
we pay first and last that's how we've always done it

1795
01:00:27,400 --> 01:00:28,600
and then I could offset

1796
01:00:28,600 --> 01:00:30,866
now notice the fee is all gross profit

1797
01:00:31,700 --> 01:00:35,000
so now I'm actually up 80 on my first transaction

1798
01:00:35,033 --> 01:00:37,200
and now I've got half the cost to get a new customer

1799
01:00:37,200 --> 01:00:38,633
already back in my pocket

1800
01:00:38,633 --> 01:00:40,066
before I even have the next payment

1801
01:00:40,066 --> 01:00:41,066
30 days later

1802
01:00:41,600 --> 01:00:43,700
so every two customers buys me another one

1803
01:00:44,466 --> 01:00:46,500
before even having to wait for the recurring to hit

1804
01:00:46,833 --> 01:00:49,400
alright and this is how you really scale

1805
01:00:50,166 --> 01:00:51,400
this is just one structure

1806
01:00:51,400 --> 01:00:53,700
there's a gazillion that I'm gonna show you alright

1807
01:00:53,700 --> 01:00:56,900
so we went from two months to one and a half alright

1808
01:00:56,966 --> 01:01:00,533
within 30 days alright so that's how you improve it

1809
01:01:01,000 --> 01:01:03,466
and that is about shortening payback period

1810
01:01:03,600 --> 01:01:04,733
making money faster

1811
01:01:06,800 --> 01:01:09,766
so we just triangulated the cost required customers

1812
01:01:10,066 --> 01:01:11,566
uh gross profit and payback period

1813
01:01:11,566 --> 01:01:14,766
that is what creates client finest acquisition

1814
01:01:14,766 --> 01:01:16,866
and I want to unleash the three levels of advertising

1815
01:01:16,866 --> 01:01:18,966
this is also not in the book for you

1816
01:01:19,033 --> 01:01:22,100
alright so client finest acquisition or CFA

1817
01:01:22,100 --> 01:01:23,266
the three levels of advertising

1818
01:01:23,266 --> 01:01:24,400
so this is how I would describe

1819
01:01:24,400 --> 01:01:26,100
three levels of advertising for you

1820
01:01:26,100 --> 01:01:28,200
as a business owner so let's start with level one

1821
01:01:28,266 --> 01:01:29,366
this is where lifetime

1822
01:01:29,366 --> 01:01:32,066
gross profit is greater than the cost of a car customer

1823
01:01:32,066 --> 01:01:33,900
this is the dollar level alright

1824
01:01:33,900 --> 01:01:36,100
so you've got to make more money than it cost you

1825
01:01:36,100 --> 01:01:37,833
to make it over the lifespan of the customer

1826
01:01:37,833 --> 01:01:39,600
ideally at least three times more

1827
01:01:39,600 --> 01:01:41,566
so what it cost you to make the money

1828
01:01:41,666 --> 01:01:44,866
how much money you make fundamentally that's it

1829
01:01:44,866 --> 01:01:46,700
if you don't have that then you don't have a business

1830
01:01:46,700 --> 01:01:48,433
so you need at least this to be

1831
01:01:48,433 --> 01:01:50,266
a business that can make money and grow

1832
01:01:50,266 --> 01:01:54,966
so level 2 is 30 day gross profit not lifetime

1833
01:01:54,966 --> 01:01:57,466
notice the big difference here is the time difference

1834
01:01:57,466 --> 01:02:00,133
this is forever and this is the first month

1835
01:02:00,400 --> 01:02:01,833
alright is greater than Kack

1836
01:02:01,833 --> 01:02:02,633
I'll explain why

1837
01:02:02,633 --> 01:02:04,466
the first month is so important in a second

1838
01:02:04,766 --> 01:02:05,966
alright so

1839
01:02:06,000 --> 01:02:07,833
we want to make more money than it costs

1840
01:02:07,833 --> 01:02:09,600
you to make it in 30 days

1841
01:02:09,600 --> 01:02:12,000
and so the result this is the key part

1842
01:02:12,066 --> 01:02:15,500
is that you never spend your own money to grow

1843
01:02:16,400 --> 01:02:19,466
and so why is 30 why is 30 days the number

1844
01:02:19,500 --> 01:02:21,800
because that's the amount of time that any business

1845
01:02:21,800 --> 01:02:23,633
can borrow money with zero interest

1846
01:02:23,633 --> 01:02:24,800
in the form of a credit card

1847
01:02:24,800 --> 01:02:27,300
or credit lines many businesses

1848
01:02:27,400 --> 01:02:27,700
banks

1849
01:02:27,700 --> 01:02:30,233
will even give you interest free credit lines for 30

1850
01:02:30,233 --> 01:02:33,200
sometimes 60 sometimes 90 days depending on

1851
01:02:33,300 --> 01:02:34,300
you know your relationship with the bank

1852
01:02:34,300 --> 01:02:35,233
how much money is whatever

1853
01:02:35,233 --> 01:02:38,100
but at least every business can get 30 day

1854
01:02:38,100 --> 01:02:39,200
interest free money

1855
01:02:40,200 --> 01:02:41,800
and so that means that

1856
01:02:42,200 --> 01:02:44,166
the way the financial system exists right now

1857
01:02:44,166 --> 01:02:45,266
at least in America

1858
01:02:45,500 --> 01:02:48,966
you can get money and not pay for it

1859
01:02:49,000 --> 01:02:51,100
as long as you pay it back in a month

1860
01:02:51,433 --> 01:02:53,300
which means that my objective for you

1861
01:02:53,300 --> 01:02:55,200
because I've always operated on

1862
01:02:55,266 --> 01:02:57,500
I've owned everything and I haven't sold equity

1863
01:02:57,500 --> 01:03:00,466
and I haven't taken on debt to grow all my businesses

1864
01:03:00,466 --> 01:03:02,666
and I've been able to grow them absurdly fast

1865
01:03:02,866 --> 01:03:04,166
relative to the marketplace

1866
01:03:04,166 --> 01:03:05,300
I'll just say it like that

1867
01:03:05,466 --> 01:03:06,700
and the way that we mental do it

1868
01:03:06,700 --> 01:03:09,433
is because I take the money that I have access to

1869
01:03:09,433 --> 01:03:11,800
and I can take as much as I possibly can

1870
01:03:11,800 --> 01:03:14,066
as long as I figure out a way to pay it back

1871
01:03:14,066 --> 01:03:15,333
in that first month

1872
01:03:16,500 --> 01:03:17,366
alright and so

1873
01:03:17,366 --> 01:03:20,066
you can use the credit card to get your customers

1874
01:03:20,300 --> 01:03:22,800
then pay the card back then reuse the money

1875
01:03:22,800 --> 01:03:25,300
recycle the cash and get another customer

1876
01:03:26,233 --> 01:03:26,466
alright

1877
01:03:26,466 --> 01:03:28,633
as long as your gross profit in the first 30 days

1878
01:03:28,633 --> 01:03:30,500
is greater than the cost to get them

1879
01:03:30,500 --> 01:03:33,466
you can never carry debt while growing your business

1880
01:03:33,600 --> 01:03:35,333
which is a sizable advantage

1881
01:03:36,066 --> 01:03:39,500
so this is what level 2 advertising would look like

1882
01:03:39,900 --> 01:03:42,366
so 30 days gross profit

1883
01:03:42,366 --> 01:03:44,600
so that means that like if I got that first customer

1884
01:03:44,633 --> 01:03:46,466
right if it cost me uh

1885
01:03:46,466 --> 01:03:48,266
one 60 to get the customer

1886
01:03:48,266 --> 01:03:50,600
and I got one 80 back in gross profit

1887
01:03:51,000 --> 01:03:52,666
then it's just all free

1888
01:03:54,400 --> 01:03:55,666
they're all it's just all free

1889
01:03:55,666 --> 01:03:57,266
that's how it works and so

1890
01:03:57,266 --> 01:03:57,833
note is that

1891
01:03:57,833 --> 01:04:00,600
if you have an XXX limit on your credit card

1892
01:04:00,666 --> 01:04:02,566
you'll always be limited by the amount of customers

1893
01:04:02,566 --> 01:04:06,300
that XXX number buys you before having to pay it back

1894
01:04:06,300 --> 01:04:07,900
and so this assumes that you don't reinvest

1895
01:04:07,900 --> 01:04:10,466
the excess profits after the 30 days on marketing

1896
01:04:10,466 --> 01:04:12,300
rather than putting it in your pocket okay

1897
01:04:12,300 --> 01:04:15,166
so once you unlock acquisition this way

1898
01:04:15,400 --> 01:04:16,300
typically

1899
01:04:17,033 --> 01:04:19,466
you will get limited by your operational constraints

1900
01:04:19,900 --> 01:04:20,466
before

1901
01:04:20,466 --> 01:04:23,166
you will get limited by your advertising constraints

1902
01:04:23,400 --> 01:04:25,366
you will not be able to handle the amount of customers

1903
01:04:25,366 --> 01:04:26,033
that you can bring in

1904
01:04:26,033 --> 01:04:27,400
and that's what's going to throttle down

1905
01:04:27,400 --> 01:04:28,200
your advertising

1906
01:04:28,500 --> 01:04:30,933
more than you can't get more customers

1907
01:04:31,466 --> 01:04:33,266
so that's level 2 is that now

1908
01:04:33,266 --> 01:04:35,566
your 30 day gross profit is greater than your cap

1909
01:04:35,633 --> 01:04:37,066
which means you're just getting free customers

1910
01:04:37,066 --> 01:04:40,133
now level 3 is where I like to live

1911
01:04:40,266 --> 01:04:41,966
which is that my 30 day gross profit

1912
01:04:41,966 --> 01:04:43,900
is greater than two times

1913
01:04:44,000 --> 01:04:46,600
the cost of getting a customer okay

1914
01:04:46,600 --> 01:04:48,166
so pay attention what happens here

1915
01:04:48,600 --> 01:04:51,266
so you make gross profit more than twice

1916
01:04:51,266 --> 01:04:53,133
Kack in the first 30 days

1917
01:04:53,200 --> 01:04:55,066
and the result is never being limited by money

1918
01:04:55,066 --> 01:04:55,700
at all remember

1919
01:04:55,700 --> 01:04:56,800
the first version of this is like

1920
01:04:56,800 --> 01:04:58,666
I'm limited by the amount of credit card that I can

1921
01:04:58,666 --> 01:05:02,133
have access to with this there are no limits

1922
01:05:03,400 --> 01:05:04,900
and this is the goal of everything

1923
01:05:04,900 --> 01:05:06,233
that I'm gonna basically go through

1924
01:05:06,233 --> 01:05:09,100
through the rest of this training with you alright

1925
01:05:09,100 --> 01:05:10,066
and so this way

1926
01:05:10,066 --> 01:05:13,366
one customer pays you back for the debt you have

1927
01:05:13,366 --> 01:05:15,733
but then also pays for the next customer

1928
01:05:15,766 --> 01:05:18,166
so you basically just repay your original spend

1929
01:05:18,166 --> 01:05:19,200
one time

1930
01:05:19,200 --> 01:05:21,400
and then you have enough money to buy another customer

1931
01:05:21,400 --> 01:05:23,000
and then that customer comes again

1932
01:05:23,000 --> 01:05:24,866
with two customers preloaded into it

1933
01:05:24,866 --> 01:05:27,000
and so then you pay itself back and then the next one

1934
01:05:27,000 --> 01:05:29,433
and then that is how you continue to multiply

1935
01:05:29,433 --> 01:05:31,866
and now you're using house money

1936
01:05:32,200 --> 01:05:34,100
to use a gambling term it's like you're not

1937
01:05:34,100 --> 01:05:35,800
you've already repaid yourself back on the first one

1938
01:05:35,800 --> 01:05:36,966
but you still have this extra cash

1939
01:05:36,966 --> 01:05:37,633
you buy the next day

1940
01:05:37,633 --> 01:05:40,000
he comes with two and now you're just doubling

1941
01:05:40,600 --> 01:05:41,233
and the thing is is

1942
01:05:41,233 --> 01:05:43,766
you're doubling your rate of acquisition by customer

1943
01:05:43,766 --> 01:05:44,933
not by month

1944
01:05:45,600 --> 01:05:47,333
which means this can happen daily

1945
01:05:47,466 --> 01:05:48,666
in terms of the doubling

1946
01:05:49,233 --> 01:05:49,600
all right

1947
01:05:49,600 --> 01:05:51,900
and this is the key to unlimited scale for advertising

1948
01:05:51,900 --> 01:05:54,300
you have to compound your advertising

1949
01:05:55,866 --> 01:05:57,433
and so this is what it would look like

1950
01:05:57,433 --> 01:05:59,500
if you just reinvested on a 30 day loop

1951
01:05:59,500 --> 01:06:01,800
instead of a daily loop this is just say like you buy

1952
01:06:01,800 --> 01:06:02,066
you know you

1953
01:06:02,066 --> 01:06:03,666
get them in today and you have two or three upsells

1954
01:06:03,666 --> 01:06:05,200
whatever it is within 30 days

1955
01:06:05,200 --> 01:06:07,233
and you get you get twice the cash back in that

1956
01:06:07,233 --> 01:06:08,566
in that 30 day period well

1957
01:06:08,566 --> 01:06:10,500
I got one customer this month using that cash

1958
01:06:10,500 --> 01:06:12,300
and next month I've got two

1959
01:06:12,300 --> 01:06:16,100
next month uh four next month eight or whatever it is

1960
01:06:16,100 --> 01:06:17,100
yeah I think that's eight

1961
01:06:17,100 --> 01:06:17,866
yes eight

1962
01:06:17,866 --> 01:06:20,500
the next one 16 would be you know all the way up there

1963
01:06:20,700 --> 01:06:22,533
alright more than I can visually display

1964
01:06:23,633 --> 01:06:25,933
and so this is what it actually looks like math wise

1965
01:06:25,966 --> 01:06:26,100
alright

1966
01:06:26,100 --> 01:06:28,100
so actually I think I removed this from the book too

1967
01:06:28,100 --> 01:06:29,000
but uh

1968
01:06:29,066 --> 01:06:30,966
within a year of reinvesting your advertising profit

1969
01:06:30,966 --> 01:06:31,566
this is key point is

1970
01:06:31,566 --> 01:06:33,566
if you have to reinvest the advertising profits

1971
01:06:33,566 --> 01:06:35,900
to getting new customers the advertising is obviously

1972
01:06:35,900 --> 01:06:37,466
no longer a bottleneck in your business

1973
01:06:37,500 --> 01:06:39,066
and this is what this book accomplishes

1974
01:06:39,066 --> 01:06:41,000
removing money as a limit for your growth

1975
01:06:41,000 --> 01:06:42,066
and so that's why I like

1976
01:06:42,066 --> 01:06:44,166
I write this because for every person

1977
01:06:44,166 --> 01:06:46,066
it's like I need money to make money

1978
01:06:51,866 --> 01:06:53,400
you need to have more skills

1979
01:06:54,166 --> 01:06:56,333
somebody who has fewer skills needs more money

1980
01:06:57,800 --> 01:07:01,600
so look at the math here month 1 to month twelve

1981
01:07:02,633 --> 01:07:04,366
one customer two customers four eight 12

1982
01:07:04,366 --> 01:07:07,133
this is just a two two multiplied out

1983
01:07:07,566 --> 01:07:09,166
and then this is and here's where it gets wild

1984
01:07:09,166 --> 01:07:10,966
this is new customers per month

1985
01:07:11,000 --> 01:07:12,733
this is total customers

1986
01:07:12,900 --> 01:07:15,333
so I'm ending the year with 4,000 customers

1987
01:07:15,366 --> 01:07:16,466
if you just make twice

1988
01:07:16,466 --> 01:07:18,300
what it cost you to acquire a customer

1989
01:07:18,300 --> 01:07:20,066
and gross profit in the first 30 days

1990
01:07:20,066 --> 01:07:20,833
and you'd reinvested

1991
01:07:20,833 --> 01:07:22,366
all of that into getting more customers

1992
01:07:22,800 --> 01:07:23,100
and so

1993
01:07:23,100 --> 01:07:26,066
you can end the year at 4000  existing customers

1994
01:07:26,066 --> 01:07:27,133
with that framework

1995
01:07:27,833 --> 01:07:28,266
by the way

1996
01:07:28,266 --> 01:07:30,900
this is exactly what we're doing with school.com

1997
01:07:32,266 --> 01:07:34,133
is how we're going crazy growth right now

1998
01:07:34,433 --> 01:07:38,800
so make gross profit more than twice K within 30 days

1999
01:07:38,966 --> 01:07:40,900
this is where we wanna go and to be clear

2000
01:07:40,900 --> 01:07:42,700
to achieve this level of advertising

2001
01:07:43,100 --> 01:07:46,800
2 x is the minimum you can by all means get 3 x 5 x

2002
01:07:46,800 --> 01:07:47,166
10 x

2003
01:07:47,166 --> 01:07:49,100
you can get 10 customers loaded with every customer

2004
01:07:49,100 --> 01:07:51,366
the money just multiplies faster all right

2005
01:07:51,366 --> 01:07:53,833
and so I'll tell you this brief story

2006
01:07:53,833 --> 01:07:56,466
but if you wanna know what my return was

2007
01:07:56,466 --> 01:07:58,333
for gym launch in the first year

2008
01:07:58,366 --> 01:08:01,600
I had a 100 to 1 return in advertising yes

2009
01:08:01,600 --> 01:08:02,633
a hundred times

2010
01:08:02,633 --> 01:08:05,666
and so I spent a hundred grand and made 10 million

2011
01:08:07,200 --> 01:08:10,800
the limit to that business then and now was market size

2012
01:08:11,166 --> 01:08:13,500
and our operational capacity to scale service

2013
01:08:13,500 --> 01:08:16,166
not our ability to profitably acquire customers

2014
01:08:16,800 --> 01:08:18,400
and that's what I want for you

2015
01:08:18,400 --> 01:08:20,000
and that's what this book accomplishes

2016
01:08:20,200 --> 01:08:22,733
and that's what I've had in virtually every business

2017
01:08:22,833 --> 01:08:25,100
since my first gyms and the thing is

2018
01:08:25,100 --> 01:08:25,266
is that

2019
01:08:25,266 --> 01:08:28,200
I think most people move on from this part too soon

2020
01:08:28,200 --> 01:08:29,433
rather than saying like no

2021
01:08:29,433 --> 01:08:30,100
we have to make

2022
01:08:30,100 --> 01:08:32,933
it better until we can get this thing to work for free

2023
01:08:33,300 --> 01:08:34,566
then you move on

2024
01:08:35,800 --> 01:08:38,666
and the main reason was we had a better money model

2025
01:08:40,200 --> 01:08:41,600
level 3 check

2026
01:08:41,766 --> 01:08:44,166
so you were here for the money models training

2027
01:08:44,166 --> 01:08:46,200
we just finished the three levels of advertising

2028
01:08:46,233 --> 01:08:48,833
now we've been to talk about money models

2029
01:08:50,900 --> 01:08:52,433
so we just covered the three levels

2030
01:08:52,433 --> 01:08:56,533
let's rock into money models and offer stacks alright

2031
01:08:56,566 --> 01:08:58,200
so uh you will notice

2032
01:08:58,200 --> 01:08:59,033
throughout this whole training

2033
01:08:59,033 --> 01:09:00,366
that some of the things are a little bit different

2034
01:09:00,366 --> 01:09:01,900
from the book and that's done on purpose

2035
01:09:01,900 --> 01:09:03,500
because I like to think through things differently

2036
01:09:03,500 --> 01:09:04,966
in different mediums alright

2037
01:09:04,966 --> 01:09:05,866
cause I can say things here

2038
01:09:05,866 --> 01:09:07,700
that I couldn't normally say in the book

2039
01:09:07,700 --> 01:09:08,900
so we'll go definition

2040
01:09:08,900 --> 01:09:11,466
run a car story and the gym launch example alright

2041
01:09:11,466 --> 01:09:14,866
so a money model is a series of offers

2042
01:09:15,366 --> 01:09:16,000
that's it

2043
01:09:16,000 --> 01:09:17,766
the reason I had to start with the offers book

2044
01:09:17,766 --> 01:09:19,266
before talking about the money model book

2045
01:09:19,266 --> 01:09:20,566
is that an offer is one unit

2046
01:09:20,566 --> 01:09:22,700
a money model is sequencing these things

2047
01:09:22,700 --> 01:09:24,766
is putting them in a series of offers

2048
01:09:24,766 --> 01:09:28,300
deliberately to maximize gross profit collected

2049
01:09:28,433 --> 01:09:31,066
in the first 30 days so I will say this all together

2050
01:09:31,066 --> 01:09:32,800
a money model is a series of offers

2051
01:09:32,800 --> 01:09:33,966
a good money model

2052
01:09:33,966 --> 01:09:36,333
which is the objective of this book or this training

2053
01:09:36,466 --> 01:09:39,200
is a series of offers structured to minimize cack

2054
01:09:39,200 --> 01:09:40,566
how much it cost to get a customer

2055
01:09:40,566 --> 01:09:41,666
maximize gross profit

2056
01:09:41,666 --> 01:09:44,200
how much they pay you collected in the first 30 days

2057
01:09:44,200 --> 01:09:46,866
how fast they pay you that's the point

2058
01:09:48,700 --> 01:09:50,766
so I'll tell you a story

2059
01:09:51,466 --> 01:09:54,200
so I we've all seen a money model happening

2060
01:09:54,200 --> 01:09:54,700
some of you guys

2061
01:09:54,700 --> 01:09:56,200
just didn't know it was happening to you

2062
01:09:56,200 --> 01:09:59,066
so I remember this crazy example one time I

2063
01:09:59,066 --> 01:09:59,666
I was I was going

2064
01:09:59,666 --> 01:10:01,100
I think I was going to Colorado for some reason

2065
01:10:01,100 --> 01:10:02,600
went to Colorado I

2066
01:10:02,600 --> 01:10:03,600
you know I line up

2067
01:10:03,600 --> 01:10:04,400
I'm like on my phone

2068
01:10:04,400 --> 01:10:05,500
waiting in line for a couple minutes

2069
01:10:05,500 --> 01:10:07,266
and then they pull me up to the rental car counter

2070
01:10:07,266 --> 01:10:09,466
right and the lady was like hi there you know

2071
01:10:09,466 --> 01:10:12,266
very like chipper I just remember a big chipper anyways

2072
01:10:12,266 --> 01:10:15,366
and so she asked me a number of questions

2073
01:10:15,366 --> 01:10:17,200
as she's going through the rental car process

2074
01:10:17,300 --> 01:10:19,800
so she says hello sir

2075
01:10:19,800 --> 01:10:22,366
can I have your ID so I can look up your reservation

2076
01:10:22,400 --> 01:10:24,266
and so I'm barely looking for my phone I'm like yeah

2077
01:10:24,266 --> 01:10:26,233
here you go and so she you know

2078
01:10:26,233 --> 01:10:27,900
extends her hand smiling

2079
01:10:27,900 --> 01:10:29,466
and I've been waiting for a few minutes right

2080
01:10:29,466 --> 01:10:32,066
so I just wanted to get in my car so I hand my ID cool

2081
01:10:32,100 --> 01:10:34,100
so then and I'm at the counter

2082
01:10:34,100 --> 01:10:36,566
you can see like I'm kind of like leaning over and so

2083
01:10:36,700 --> 01:10:40,366
so does it look like we have the car that you reserved

2084
01:10:40,600 --> 01:10:42,433
are you okay with a tundra

2085
01:10:42,433 --> 01:10:46,033
it's red and so I was like yeah

2086
01:10:46,033 --> 01:10:47,366
sure that's fine whatever

2087
01:10:47,466 --> 01:10:50,266
and so I'm not really paying attention

2088
01:10:50,266 --> 01:10:51,233
and then she says okay

2089
01:10:51,233 --> 01:10:52,600
I've got you down for three days

2090
01:10:52,600 --> 01:10:54,300
would you like to have a late return

2091
01:10:54,300 --> 01:10:56,266
so you don't have to worry about late fees

2092
01:10:56,266 --> 01:10:57,500
or turn in time

2093
01:10:58,033 --> 01:10:58,700
you know if you're on

2094
01:10:58,700 --> 01:11:00,400
in a rush to get to your plane flight

2095
01:11:00,433 --> 01:11:02,366
so she asked her head kind of like with her head cocked

2096
01:11:02,366 --> 01:11:03,633
and I was like yeah

2097
01:11:03,633 --> 01:11:05,900
I guess that's fine flexibility is good

2098
01:11:06,100 --> 01:11:07,233
and so she was like okay

2099
01:11:07,233 --> 01:11:08,533
um great

2100
01:11:09,166 --> 01:11:11,700
so give me a second just putting that in

2101
01:11:11,700 --> 01:11:13,300
would you like to upgrade your insurance

2102
01:11:13,300 --> 01:11:15,566
to cover any bumps and scratches in the car

2103
01:11:15,566 --> 01:11:17,700
it covers any and all damage that occurs in the vehicle

2104
01:11:17,700 --> 01:11:18,600
during your stay

2105
01:11:19,200 --> 01:11:20,400
and so I was like no

2106
01:11:20,400 --> 01:11:22,633
I'm good I have no plans on drag racing right

2107
01:11:22,633 --> 01:11:24,433
it's ha ha ha and she's like okay

2108
01:11:24,433 --> 01:11:26,000
so just the minimum insurance then

2109
01:11:26,000 --> 01:11:26,500
and I said yeah

2110
01:11:26,500 --> 01:11:28,200
that's fine I barely looked up right

2111
01:11:28,200 --> 01:11:29,100
I'm just like going through this

2112
01:11:29,100 --> 01:11:30,866
I want to get the car and she's like

2113
01:11:30,866 --> 01:11:33,100
okay then I have your keys ready in a second

2114
01:11:33,100 --> 01:11:34,433
do you want to prepay for your fuel

2115
01:11:34,433 --> 01:11:35,966
so you don't have to worry about filling it up

2116
01:11:36,033 --> 01:11:36,766
uh you just

2117
01:11:36,766 --> 01:11:37,833
you can return it on empty

2118
01:11:37,833 --> 01:11:39,366
and not have to worry about paying it

2119
01:11:39,566 --> 01:11:41,000
uh we fuel gas at 3

2120
01:11:41,000 --> 01:11:42,233
75 a gallon and I was like

2121
01:11:42,233 --> 01:11:43,433
well what's gas cost around here

2122
01:11:43,433 --> 01:11:44,233
she was she was like

2123
01:11:44,233 --> 01:11:47,166
three 50 and I was like 25 cents you know

2124
01:11:47,166 --> 01:11:48,366
per gallon yeah

2125
01:11:48,366 --> 01:11:50,333
sure that that checks out that that works

2126
01:11:50,500 --> 01:11:51,566
and so I was like

2127
01:11:51,566 --> 01:11:53,300
so an extra two hundred two dollars and fifty cents

2128
01:11:53,300 --> 01:11:54,433
I was like well that sounds reasonable

2129
01:11:54,433 --> 01:11:55,233
that's not that's not a big deal

2130
01:11:55,233 --> 01:11:56,300
I don't have to worry about it

2131
01:11:56,300 --> 01:11:58,266
so boom sign me up for it

2132
01:11:58,266 --> 01:11:59,300
I'll prepay the gas

2133
01:11:59,800 --> 01:12:02,400
and so she says Alrighty then well here's your ID

2134
01:12:02,400 --> 01:12:03,700
can you sign here for me great

2135
01:12:03,700 --> 01:12:04,966
there's your receipt on the back

2136
01:12:04,966 --> 01:12:06,266
I circled the parking space

2137
01:12:06,266 --> 01:12:09,033
just go around the corner and pass the restroom sign

2138
01:12:09,033 --> 01:12:10,766
uh go past the first three columns

2139
01:12:10,766 --> 01:12:12,566
and you'll see the J space on your left

2140
01:12:12,566 --> 01:12:14,200
your tundra should be about halfway down

2141
01:12:14,200 --> 01:12:15,666
enjoy your trip alright

2142
01:12:15,666 --> 01:12:17,566
and so mind you right

2143
01:12:17,566 --> 01:12:19,833
I take my thing I'm walking away right

2144
01:12:19,833 --> 01:12:21,000
and I look at my receipt

2145
01:12:21,000 --> 01:12:23,800
and I just paid 400 bucks for a three day rental

2146
01:12:23,833 --> 01:12:26,866
when I reserved online for $19 a day

2147
01:12:26,866 --> 01:12:30,766
and I was like I went from 19 bucks a day to $400

2148
01:12:31,366 --> 01:12:35,200
what had just happened a well engineered money model

2149
01:12:35,766 --> 01:12:38,533
and I remembered that moment and I was like

2150
01:12:38,600 --> 01:12:39,833
I need to write this down

2151
01:12:39,833 --> 01:12:42,033
this is the perfect example of what it looks like

2152
01:12:42,033 --> 01:12:44,266
to create a money model a series of offers

2153
01:12:44,666 --> 01:12:47,433
structured sequentially to monetize the customer

2154
01:12:47,433 --> 01:12:49,600
and provide as much value as humanly possible

2155
01:12:49,766 --> 01:12:51,766
so if you think through each of the upsells

2156
01:12:51,766 --> 01:12:53,566
she first upgraded my car from a Toyota

2157
01:12:53,566 --> 01:12:55,000
Yaris to a Toyota Tundra

2158
01:12:55,000 --> 01:12:56,833
by saying that my reservation wasn't there

2159
01:12:56,833 --> 01:12:58,500
now in my life

2160
01:12:58,500 --> 01:13:00,833
I've never had the car that I reserved actually fail

2161
01:13:00,833 --> 01:13:01,633
I don't know some of you guys said

2162
01:13:01,633 --> 01:13:01,966
I feel like

2163
01:13:01,966 --> 01:13:03,700
I've never actually had the car that I asked for there

2164
01:13:03,700 --> 01:13:05,866
so this is the classic Seinfeld joke

2165
01:13:05,866 --> 01:13:06,666
he's like oh no

2166
01:13:06,666 --> 01:13:09,333
I think you know how to take the reservation

2167
01:13:09,366 --> 01:13:12,100
but you don't know how to hold the reservation

2168
01:13:12,100 --> 01:13:12,833
and that's

2169
01:13:12,833 --> 01:13:15,666
that's kind that's the main part of the reservation

2170
01:13:15,666 --> 01:13:18,700
right and so we went from and just from that

2171
01:13:18,700 --> 01:13:21,466
I went from $19 a day to $69 a day right now

2172
01:13:21,466 --> 01:13:23,000
she solved my big guy in a car

2173
01:13:23,000 --> 01:13:24,700
in a small car problem by offering it

2174
01:13:24,700 --> 01:13:28,000
now did they probably have another Yaris like vehicle

2175
01:13:28,000 --> 01:13:31,800
probably she just made the offer and I said yes

2176
01:13:31,966 --> 01:13:34,233
second one she did was late check out

2177
01:13:34,233 --> 01:13:35,200
so this would be

2178
01:13:35,200 --> 01:13:38,200
would add a half day or one time fee to my reservation

2179
01:13:38,233 --> 01:13:39,333
now um

2180
01:13:39,366 --> 01:13:40,200
I think I shoot

2181
01:13:40,200 --> 01:13:41,166
I can't remember why I declined the offer

2182
01:13:41,166 --> 01:13:41,633
but the point is

2183
01:13:41,633 --> 01:13:43,700
is that they made this fee up to begin with

2184
01:13:43,700 --> 01:13:44,766
this is the main part of this

2185
01:13:44,766 --> 01:13:48,366
is that the idea of late check out only exists

2186
01:13:48,366 --> 01:13:50,833
because they decide that if you check out past

2187
01:13:50,833 --> 01:13:52,633
the time that they made up arbitrarily

2188
01:13:52,633 --> 01:13:54,266
is now late and so

2189
01:13:54,266 --> 01:13:55,433
what I want to really put into

2190
01:13:55,433 --> 01:13:56,700
your minds right now is that we are

2191
01:13:56,700 --> 01:13:58,800
I'm explaining the policies

2192
01:13:58,833 --> 01:14:00,400
but there's a game maker

2193
01:14:00,400 --> 01:14:02,566
who made the rules of the game

2194
01:14:03,200 --> 01:14:04,766
they created this fee

2195
01:14:04,766 --> 01:14:06,300
think about the like if you start rental cars

2196
01:14:06,300 --> 01:14:07,300
you don't immediately say oh

2197
01:14:07,300 --> 01:14:08,866
if someone comes back an hour later

2198
01:14:08,866 --> 01:14:09,700
I'm gonna charge them

2199
01:14:09,700 --> 01:14:11,000
you don't think we think that now

2200
01:14:11,000 --> 01:14:13,366
because that's how it's that's how it's always been

2201
01:14:13,366 --> 01:14:15,266
but it wasn't always like that

2202
01:14:15,266 --> 01:14:16,666
some guy figured it out

2203
01:14:16,666 --> 01:14:18,733
and then every other rental car started doing it

2204
01:14:19,300 --> 01:14:20,866
the next one was the insurance upgrade now

2205
01:14:20,866 --> 01:14:22,900
a lot of you guys saw me not take this

2206
01:14:23,300 --> 01:14:26,200
but I did take insurance I didn't even realize it

2207
01:14:26,200 --> 01:14:28,700
and I use this for everything after this point

2208
01:14:28,833 --> 01:14:33,000
and so she said do you want to upgrade your insurance

2209
01:14:33,866 --> 01:14:36,066
now implied in the language is that

2210
01:14:36,066 --> 01:14:38,400
I already have insurance by saying

2211
01:14:38,400 --> 01:14:40,100
do you want to upgrade your insurance

2212
01:14:40,266 --> 01:14:42,666
and so some customers will take the upgrade

2213
01:14:42,666 --> 01:14:43,666
which is fine

2214
01:14:43,833 --> 01:14:49,000
but the real sale is the minimum package she then said

2215
01:14:49,000 --> 01:14:51,000
oh would you just want the minimum then

2216
01:14:52,033 --> 01:14:53,500
you don't want anything else

2217
01:14:53,500 --> 01:14:56,200
do you those are implied sales

2218
01:14:56,300 --> 01:14:58,533
you want anything else besides the thing I just said

2219
01:14:58,866 --> 01:14:59,966
the minimum offer

2220
01:14:59,966 --> 01:15:02,200
meaning you have to get it because it's minimum

2221
01:15:02,233 --> 01:15:02,866
but the thing is

2222
01:15:02,866 --> 01:15:06,066
is that you don't have to buy it a lot of by the way

2223
01:15:06,066 --> 01:15:06,600
credit cards

2224
01:15:06,600 --> 01:15:08,466
already have rental car insurance built in

2225
01:15:08,466 --> 01:15:09,566
if you have Amex for example

2226
01:15:09,566 --> 01:15:10,900
and you do trips on Amex

2227
01:15:10,900 --> 01:15:12,333
they cover rental car insurance

2228
01:15:12,833 --> 01:15:15,300
and so this is pure profit for them

2229
01:15:15,800 --> 01:15:17,833
all right so pro tip for you

2230
01:15:17,833 --> 01:15:19,466
but the thing is and this is the pro

2231
01:15:19,466 --> 01:15:21,000
this is the really sexy thing

2232
01:15:21,000 --> 01:15:23,333
is that this is masterful naming

2233
01:15:23,500 --> 01:15:25,733
so if you have multiple packages

2234
01:15:25,900 --> 01:15:28,400
you can down sell your minimum package

2235
01:15:28,400 --> 01:15:31,033
knowing that 90% of people might take it

2236
01:15:31,033 --> 01:15:32,900
simply because you called it the minimum package

2237
01:15:32,900 --> 01:15:33,500
instead of saying hey

2238
01:15:33,500 --> 01:15:34,866
this is my shitty package

2239
01:15:35,366 --> 01:15:37,733
think about how different minimum is versus

2240
01:15:37,800 --> 01:15:40,433
a economy package right

2241
01:15:40,433 --> 01:15:41,500
minimum is like well okay

2242
01:15:41,500 --> 01:15:45,100
I have to get it right kind of interesting alright

2243
01:15:45,100 --> 01:15:46,266
so next one is prepaid gas

2244
01:15:46,266 --> 01:15:47,600
now this one was uh

2245
01:15:47,633 --> 01:15:49,466
sneaky in that the way it's positioned

2246
01:15:49,466 --> 01:15:50,500
to be very clear

2247
01:15:50,500 --> 01:15:52,500
you wanna make sure the customer understands things

2248
01:15:52,500 --> 01:15:52,966
alright now

2249
01:15:52,966 --> 01:15:56,300
this one particularly was one that I did the math

2250
01:15:56,300 --> 01:15:57,100
and I thought it was like okay

2251
01:15:57,100 --> 01:15:58,400
25 cents extra per gallon

2252
01:15:58,400 --> 01:15:59,566
that's a that's a fine deal

2253
01:15:59,566 --> 01:16:01,366
the way it actually works by the way

2254
01:16:01,400 --> 01:16:03,400
is you prepay the whole tank

2255
01:16:04,066 --> 01:16:05,900
so you buy a full tank

2256
01:16:05,900 --> 01:16:07,100
and I think the tundra had like whatever

2257
01:16:07,100 --> 01:16:08,833
25 gallons in it so

2258
01:16:08,833 --> 01:16:11,633
I actually end up paying $93 for a tank of gas

2259
01:16:11,633 --> 01:16:13,000
up front and so basically

2260
01:16:13,000 --> 01:16:15,266
whatever I don't use is profit for them

2261
01:16:15,266 --> 01:16:16,466
and so if I use half a tank

2262
01:16:16,466 --> 01:16:18,800
not only did they I did I charge 25 cents more

2263
01:16:18,800 --> 01:16:19,666
for the gallon

2264
01:16:19,800 --> 01:16:22,566
but the half tank I didn't use is just extra

2265
01:16:22,566 --> 01:16:23,666
it's extra profit for them

2266
01:16:23,666 --> 01:16:25,233
but the advantage is when you turn it in

2267
01:16:25,233 --> 01:16:28,066
you don't have to fill it up'cause so think about this

2268
01:16:28,266 --> 01:16:30,966
they create a fee to avoid a fee

2269
01:16:32,433 --> 01:16:33,800
because if you turn the

2270
01:16:33,800 --> 01:16:34,833
imagine I had a rental car company

2271
01:16:34,833 --> 01:16:35,600
I could say turn

2272
01:16:35,600 --> 01:16:37,100
turn the car with whatever amount of gas you have

2273
01:16:37,100 --> 01:16:38,566
and I fill the car back up

2274
01:16:38,600 --> 01:16:40,800
and that that could just be factored into my price

2275
01:16:41,500 --> 01:16:43,200
but instead or I could just say

2276
01:16:43,200 --> 01:16:44,433
we fill it up at this rate

2277
01:16:44,433 --> 01:16:45,266
whatever you don't fill up

2278
01:16:45,266 --> 01:16:46,933
we'll fill it up and we'll charge your card afterwards

2279
01:16:46,966 --> 01:16:48,366
that would be an easy way to do it

2280
01:16:48,366 --> 01:16:51,466
but instead they say we're gonna charge you more

2281
01:16:51,466 --> 01:16:53,200
we charge you $5 a gallon

2282
01:16:53,200 --> 01:16:54,800
or 50 or $10 a gallon

2283
01:16:54,800 --> 01:17:00,133
if you turn the car in with less than full gas

2284
01:17:01,100 --> 01:17:03,300
if you turn the car in with less than full gas

2285
01:17:03,300 --> 01:17:04,900
but then you prepay the whole tank

2286
01:17:05,466 --> 01:17:07,600
then you still bought the whole tank

2287
01:17:07,866 --> 01:17:10,666
to avoid paying the fee that they're then also

2288
01:17:10,666 --> 01:17:12,666
still going to fill the car back up again

2289
01:17:13,400 --> 01:17:14,233
again like I say

2290
01:17:14,233 --> 01:17:16,400
this so that you can understand the

2291
01:17:16,400 --> 01:17:18,800
the thought process that went into structuring

2292
01:17:18,800 --> 01:17:20,400
the sales process like

2293
01:17:20,400 --> 01:17:21,266
there's a reason

2294
01:17:21,266 --> 01:17:24,900
these guys do billions a month in sales

2295
01:17:24,900 --> 01:17:26,566
and for those of you who are like

2296
01:17:26,566 --> 01:17:27,966
man I don't like this

2297
01:17:28,566 --> 01:17:30,400
the rental car industry wouldn't exist

2298
01:17:30,400 --> 01:17:32,000
they actually run very thin margins

2299
01:17:32,000 --> 01:17:33,000
like there's there's you know

2300
01:17:33,000 --> 01:17:33,166
I mean

2301
01:17:33,166 --> 01:17:35,233
like it's not like they're they're raking it in here

2302
01:17:35,233 --> 01:17:36,600
there's people who crash the cars

2303
01:17:36,600 --> 01:17:37,500
there's a lot of other costs

2304
01:17:37,500 --> 01:17:38,900
that go into renting a car

2305
01:17:39,166 --> 01:17:43,433
and so for you you cannot shy away from capitalism

2306
01:17:43,433 --> 01:17:45,100
I mean if you want to be a business owner

2307
01:17:45,400 --> 01:17:46,666
you have to make a profit

2308
01:17:46,666 --> 01:17:48,000
in order to be able to scale your business

2309
01:17:48,000 --> 01:17:48,833
to help more people

2310
01:17:48,833 --> 01:17:51,466
and if they did not make this profit there

2311
01:17:51,466 --> 01:17:52,966
it would be a wild inconvenience for us

2312
01:17:52,966 --> 01:17:55,800
now Uber then exist later much later uh

2313
01:17:55,800 --> 01:17:56,666
that can sort of help

2314
01:17:56,666 --> 01:18:00,133
but still having rental car company there is nice okay

2315
01:18:00,633 --> 01:18:01,966
finally there's damages

2316
01:18:01,966 --> 01:18:03,300
that's an implicit up sale if you scratch the car

2317
01:18:03,300 --> 01:18:05,966
you gotta pay alright and then late return yet again

2318
01:18:05,966 --> 01:18:08,900
they invented the line then we had to pay for it okay

2319
01:18:08,900 --> 01:18:09,300
and so

2320
01:18:09,300 --> 01:18:12,966
these are all the offers that they offered to me

2321
01:18:13,166 --> 01:18:15,600
in that one conversation and so

2322
01:18:15,600 --> 01:18:17,466
for those of you who are afraid of making a second

2323
01:18:17,466 --> 01:18:19,233
and third and fourth and fifth offer

2324
01:18:19,233 --> 01:18:21,733
did it seem like she's like I was annoyed

2325
01:18:21,833 --> 01:18:23,400
not really and also

2326
01:18:23,400 --> 01:18:25,166
what is the price I have to pay as a business owner

2327
01:18:25,166 --> 01:18:26,033
what do I get

2328
01:18:26,033 --> 01:18:30,166
if the cost is that one out of 20 customers gets upset

2329
01:18:31,000 --> 01:18:34,400
one out of 20 people is just crazy period

2330
01:18:34,433 --> 01:18:35,200
if you deal with general

2331
01:18:35,200 --> 01:18:36,900
population for those business owners to do

2332
01:18:36,900 --> 01:18:38,900
I came from Gen Pop so I get it

2333
01:18:39,500 --> 01:18:40,933
there's just crazy people

2334
01:18:41,033 --> 01:18:41,933
and you don't want

2335
01:18:42,200 --> 01:18:45,233
not make offers to 19 out of 20 sane people

2336
01:18:45,233 --> 01:18:46,666
because of one crazy person

2337
01:18:46,700 --> 01:18:47,800
and so the cost would be

2338
01:18:47,800 --> 01:18:48,866
maybe you don't have a business

2339
01:18:48,866 --> 01:18:49,966
or you don't make a profit

2340
01:18:49,966 --> 01:18:52,066
or you have one out of 20 people who complain

2341
01:18:52,200 --> 01:18:52,866
to me

2342
01:18:52,866 --> 01:18:55,000
the trade is clear and I'm still gonna make the trade

2343
01:18:57,033 --> 01:18:57,500
and so

2344
01:18:57,500 --> 01:18:59,633
my goal is that you walk away by the end of this book

2345
01:18:59,633 --> 01:19:03,466
and training with eyes tuned to finding money models

2346
01:19:03,800 --> 01:19:05,900
alright and understanding what makes them work

2347
01:19:05,900 --> 01:19:08,300
and studying some of the biggest brands in the world

2348
01:19:08,300 --> 01:19:10,300
will become an endless learning experience for you

2349
01:19:10,300 --> 01:19:11,833
which is what I absolutely recommend

2350
01:19:11,833 --> 01:19:13,400
is look at their money models

2351
01:19:13,400 --> 01:19:15,700
if someone's been around 30 years in the same industry

2352
01:19:15,700 --> 01:19:18,666
they have figured it out look at what they do

2353
01:19:18,666 --> 01:19:19,400
and the cool thing is

2354
01:19:19,400 --> 01:19:21,033
you can take things from rental cars

2355
01:19:21,033 --> 01:19:22,466
and apply it to insurance

2356
01:19:22,466 --> 01:19:24,766
you can take things from here and apply it to

2357
01:19:24,866 --> 01:19:26,100
teeth whitening like it doesn't matter

2358
01:19:26,100 --> 01:19:27,633
you take this from here and turn it to plumbing

2359
01:19:27,633 --> 01:19:28,866
like they all

2360
01:19:28,866 --> 01:19:31,000
these models are more psychology

2361
01:19:31,000 --> 01:19:32,100
in terms of how they work

2362
01:19:32,100 --> 01:19:32,500
and get

2363
01:19:32,500 --> 01:19:35,366
and are persuasive than they are industry specific

2364
01:19:36,300 --> 01:19:38,600
so that's my rental car story so uh

2365
01:19:38,600 --> 01:19:40,200
gym launch just to give you an idea

2366
01:19:40,200 --> 01:19:41,433
when we went from $1,000 in

2367
01:19:41,433 --> 01:19:44,700
my bank account to $17 million in profit in 20 months

2368
01:19:44,700 --> 01:19:46,266
so remember December 2016

2369
01:19:46,266 --> 01:19:48,033
thousand dollars in my bank account 20 months later

2370
01:19:48,033 --> 01:19:51,800
$17 million in profit the only way that happens

2371
01:19:51,900 --> 01:19:53,600
is through having a money model

2372
01:19:54,100 --> 01:19:56,600
and it only scaled because insanely fast

2373
01:19:56,600 --> 01:19:58,800
because of our insane customer finance acquisition

2374
01:19:58,800 --> 01:20:00,600
so remember Level 2 was uh sorry

2375
01:20:00,600 --> 01:20:03,766
level 3 it should say Level 3 is two times Kack right

2376
01:20:03,766 --> 01:20:06,133
it should say Level 3 okay

2377
01:20:06,200 --> 01:20:07,900
so this these were our actual metrics

2378
01:20:07,900 --> 01:20:08,866
so people don't share this

2379
01:20:08,866 --> 01:20:10,100
this is these were the actual metrics

2380
01:20:10,400 --> 01:20:12,600
is that our 30 day gross profit was 6 k

2381
01:20:12,600 --> 01:20:14,000
our cack was 500

2382
01:20:14,000 --> 01:20:18,066
our 12 month gross profit was 48,000 cack

2383
01:20:19,566 --> 01:20:22,633
48,000 Kack so if I have an investment for you

2384
01:20:22,633 --> 01:20:23,766
and you pay me $500

2385
01:20:23,766 --> 01:20:26,066
and I pay you $48,000 back at the end of the year

2386
01:20:26,066 --> 01:20:27,066
is that a good investment

2387
01:20:27,066 --> 01:20:27,666
now what if I said

2388
01:20:27,666 --> 01:20:29,266
you can do it as many times as you want

2389
01:20:29,600 --> 01:20:31,100
you would put as much money into that machine

2390
01:20:31,100 --> 01:20:32,100
as you possibly could

2391
01:20:32,100 --> 01:20:35,866
now the real question is what's your budget

2392
01:20:36,233 --> 01:20:38,266
if I said I've got this ATM machine

2393
01:20:38,266 --> 01:20:41,366
you put $500 in and then $48,000 comes out

2394
01:20:41,366 --> 01:20:42,600
would you budget yourself

2395
01:20:42,600 --> 01:20:43,166
would you say hey

2396
01:20:43,166 --> 01:20:45,266
I'm only spending $5,000 a month on this

2397
01:20:45,866 --> 01:20:47,000
of course you wouldn't

2398
01:20:47,000 --> 01:20:49,166
that's why the idea of marketing budget is ridiculous

2399
01:20:49,200 --> 01:20:51,166
if you design a properly designed money model

2400
01:20:51,166 --> 01:20:52,866
you can out make the budget

2401
01:20:52,866 --> 01:20:54,433
and then the budget doesn't matter

2402
01:20:54,433 --> 01:20:55,966
the point is to spend as much as you possibly can

2403
01:20:55,966 --> 01:20:57,266
within KPI

2404
01:20:57,800 --> 01:20:59,666
KPI meaning key performance indicators

2405
01:20:59,833 --> 01:21:03,766
all right and so our 30 day GPT hack was 12 to 1

2406
01:21:03,766 --> 01:21:06,433
so within one month if I spent $500

2407
01:21:06,433 --> 01:21:09,333
I got $6,000 back in the first month

2408
01:21:09,766 --> 01:21:12,500
so I'm making money making money

2409
01:21:13,266 --> 01:21:15,266
and so this was these this is the actual

2410
01:21:15,266 --> 01:21:17,366
this was like the offer stack for Jim Lodge

2411
01:21:17,433 --> 01:21:19,900
so far as we had a free book Lead Magnet podcast

2412
01:21:19,900 --> 01:21:21,300
that was the front end alright

2413
01:21:21,300 --> 01:21:21,366
so

2414
01:21:21,366 --> 01:21:23,433
we got people into our world to see what we were about

2415
01:21:23,433 --> 01:21:25,466
then the second offer we had was a free strategy call

2416
01:21:25,466 --> 01:21:27,166
to apply the stuff that they Learned here

2417
01:21:27,166 --> 01:21:29,066
into their business so we'd say hey

2418
01:21:29,066 --> 01:21:30,766
and the way that we did this was uh

2419
01:21:30,833 --> 01:21:31,433
we said listen

2420
01:21:31,433 --> 01:21:33,500
leave your card at home we wanna help you out

2421
01:21:33,500 --> 01:21:35,600
and if it's a good fit we'll invite you to another call

2422
01:21:35,600 --> 01:21:36,466
that way was low pressure

2423
01:21:36,466 --> 01:21:37,966
I'd say leave your card don't worry about it

2424
01:21:38,133 --> 01:21:39,400
then we'd um

2425
01:21:39,433 --> 01:21:41,000
we do the second call and then we'd offer the

2426
01:21:41,000 --> 01:21:42,066
the 16,000 dollar thing

2427
01:21:42,066 --> 01:21:44,266
which is 16 thousand fill your gym intensive

2428
01:21:44,266 --> 01:21:46,266
so that was our premium offer

2429
01:21:46,266 --> 01:21:47,466
uh with very attractive payment terms

2430
01:21:47,466 --> 01:21:49,066
so they could put a thousand dollars down

2431
01:21:49,066 --> 01:21:50,233
and to pay a thousand dollars a week

2432
01:21:50,233 --> 01:21:52,900
which no one did and to this day to my knowledge

2433
01:21:52,900 --> 01:21:54,400
no one else ever has done

2434
01:21:54,433 --> 01:21:55,166
and the reason we could

2435
01:21:55,166 --> 01:21:57,400
do that is cause we actually made that money

2436
01:21:58,433 --> 01:22:01,500
and so most gyms couldn't afford the $16,000

2437
01:22:01,500 --> 01:22:04,100
most of them but we could make them more than $16,000

2438
01:22:04,100 --> 01:22:06,100
in their first month and then they would pay for it

2439
01:22:06,366 --> 01:22:07,833
so I just want to get as many people to say yes

2440
01:22:07,833 --> 01:22:09,166
cause I knew we could crush it for them

2441
01:22:09,666 --> 01:22:12,166
now offer 3 was a supplement

2442
01:22:12,166 --> 01:22:14,033
selling secrets course or training

2443
01:22:14,033 --> 01:22:16,833
this was free alright that was a cool whip about this

2444
01:22:16,833 --> 01:22:18,400
so it was free

2445
01:22:18,700 --> 01:22:21,400
all we had to do was get them to buy products

2446
01:22:21,400 --> 01:22:23,200
we'd give them the training for free

2447
01:22:23,266 --> 01:22:25,633
and then we would get them to sell the products

2448
01:22:25,633 --> 01:22:27,266
when I say get them to I just like

2449
01:22:27,266 --> 01:22:29,566
we explained how they would make more money

2450
01:22:29,800 --> 01:22:30,633
selling these products

2451
01:22:30,633 --> 01:22:32,500
and why they were specifically made for gyms

2452
01:22:32,500 --> 01:22:33,433
and so I had price

2453
01:22:33,433 --> 01:22:35,166
Protection that no other company would offer

2454
01:22:35,200 --> 01:22:36,266
they got to use basically

2455
01:22:36,266 --> 01:22:37,566
backdoor links for their customers

2456
01:22:37,566 --> 01:22:38,500
so that they were the good guys

2457
01:22:38,500 --> 01:22:39,966
rather than me being the good guy

2458
01:22:40,033 --> 01:22:40,366
so like

2459
01:22:40,366 --> 01:22:42,200
one of the things that I hated about other brands was

2460
01:22:42,200 --> 01:22:43,666
like I would sell at this price

2461
01:22:43,666 --> 01:22:45,033
but they would compete against me online

2462
01:22:45,033 --> 01:22:46,033
so I would get them the customer

2463
01:22:46,033 --> 01:22:46,966
and then the customer would switch to them

2464
01:22:46,966 --> 01:22:48,700
and I hated that and so as a gym owner

2465
01:22:48,700 --> 01:22:49,866
cause I'm like I'm paying for this cost

2466
01:22:49,866 --> 01:22:51,300
like I'm just transferring over to another brand

2467
01:22:51,300 --> 01:22:54,000
that feels bad and so what we did was we said

2468
01:22:54,000 --> 01:22:55,566
we're gonna be priced here online

2469
01:22:55,800 --> 01:22:57,900
you can offer this price in store

2470
01:22:57,900 --> 01:22:58,466
and then that way

2471
01:22:58,466 --> 01:22:59,966
people will always keep buying from you

2472
01:22:59,966 --> 01:23:01,366
so I made that advantage and obviously

2473
01:23:01,366 --> 01:23:03,266
we just made the economics work for us on the back end

2474
01:23:03,366 --> 01:23:04,300
and that's how this

2475
01:23:04,300 --> 01:23:06,266
the supplement company started the first month

2476
01:23:06,266 --> 01:23:07,633
doing 1.7 million a month

2477
01:23:07,633 --> 01:23:09,500
cause we actually solved a problem for gyms

2478
01:23:09,500 --> 01:23:10,700
they didn't have to carry inventory

2479
01:23:10,700 --> 01:23:12,300
we would do it we allowed them sell subscriptions

2480
01:23:12,300 --> 01:23:13,500
cause we'd deliver on it so

2481
01:23:13,500 --> 01:23:15,266
we solved all these problems that I wish I had

2482
01:23:15,266 --> 01:23:17,666
as a gym owner and made a company that would solve it

2483
01:23:19,066 --> 01:23:20,500
and so then the fourth thing we did was

2484
01:23:20,500 --> 01:23:21,666
we did a free feedback call

2485
01:23:21,666 --> 01:23:23,966
so this was basically saying okay

2486
01:23:23,966 --> 01:23:25,866
you know you're halfway through your eight weeks in

2487
01:23:25,966 --> 01:23:27,633
let's let's talk about you know

2488
01:23:27,633 --> 01:23:29,666
where you're at how much money did you make cool

2489
01:23:29,666 --> 01:23:31,400
so what we did was a free uh

2490
01:23:31,400 --> 01:23:32,500
free with commitment offer

2491
01:23:32,500 --> 01:23:35,100
which is something that we'll talk about in the

2492
01:23:35,100 --> 01:23:36,400
fourth section of this training

2493
01:23:36,400 --> 01:23:37,700
which is continuity offers

2494
01:23:37,833 --> 01:23:40,100
and so basically what we would say is hey

2495
01:23:40,100 --> 01:23:42,900
you have 16 weeks you're eight weeks in

2496
01:23:43,166 --> 01:23:45,400
say yes now and I'll give you all the

2497
01:23:45,400 --> 01:23:46,300
the stuff that you're gonna get

2498
01:23:46,300 --> 01:23:47,166
over the next three years

2499
01:23:47,166 --> 01:23:48,366
if you say yes today

2500
01:23:48,466 --> 01:23:50,466
and you'll just keep paying your existing thing

2501
01:23:50,466 --> 01:23:52,500
so you're just gonna get more for nothing

2502
01:23:52,833 --> 01:23:54,600
and then the end of the six weeks or so

2503
01:23:54,600 --> 01:23:56,066
end of the eight weeks uh

2504
01:23:56,066 --> 01:23:58,733
the next eight right 16 total eight halfway point

2505
01:23:58,800 --> 01:24:00,600
at the end of the next eight

2506
01:24:00,600 --> 01:24:03,400
it'll just revert into this cheaper

2507
01:24:03,466 --> 01:24:05,400
billing that you get for a longer period of time

2508
01:24:05,900 --> 01:24:08,700
and so they were currently paying $1,000 a week

2509
01:24:08,766 --> 01:24:10,800
they would say yes get more value

2510
01:24:10,800 --> 01:24:12,433
not pay more keep going

2511
01:24:12,433 --> 01:24:12,900
and at the end

2512
01:24:12,900 --> 01:24:15,633
it would fall down to a lower rate and all that

2513
01:24:15,633 --> 01:24:17,600
the objective of this bonus was

2514
01:24:17,600 --> 01:24:20,600
was to get them to agree to continuity on the back

2515
01:24:21,500 --> 01:24:23,466
specifically a higher level of continuity

2516
01:24:23,466 --> 01:24:25,200
cause we had a kind of built in continuity

2517
01:24:25,200 --> 01:24:25,866
which was super cheap

2518
01:24:25,866 --> 01:24:27,066
that was like I think 500 bucks a month

2519
01:24:27,066 --> 01:24:27,900
something like that

2520
01:24:27,900 --> 01:24:29,633
but what we wanted them to get to was the thirty

2521
01:24:29,633 --> 01:24:32,066
two hundred dollar a month level that uh

2522
01:24:32,066 --> 01:24:34,333
that the upsell um offered

2523
01:24:35,000 --> 01:24:36,500
so that's how we got so many people to say yes

2524
01:24:36,500 --> 01:24:38,966
and to be fair that's how we did it for years

2525
01:24:39,266 --> 01:24:40,966
no it doesn't have to be complicated

2526
01:24:40,966 --> 01:24:42,900
if anything simple scales

2527
01:24:43,000 --> 01:24:44,700
so you want to have as few offers as possible

2528
01:24:44,700 --> 01:24:46,033
that allow you to make the most gross

2529
01:24:46,033 --> 01:24:48,100
profit possible in the shortest amount of time

2530
01:24:48,366 --> 01:24:49,400
alright so

2531
01:24:49,400 --> 01:24:50,466
understanding how to do this

2532
01:24:50,466 --> 01:24:51,866
can change your business forever

2533
01:24:52,000 --> 01:24:55,466
so that is fundamentally examples of money models

2534
01:24:55,466 --> 01:24:57,900
and what a model money model is great

2535
01:24:58,666 --> 01:24:59,466
kaboom

2536
01:25:00,200 --> 01:25:01,466
now we talk about the 4

2537
01:25:01,466 --> 01:25:03,966
types of offers that create money models to begin with

2538
01:25:05,800 --> 01:25:08,200
four types of offers that create a money model

2539
01:25:08,266 --> 01:25:09,666
let's dive in

2540
01:25:09,666 --> 01:25:11,566
so number one is how we broke the gym industry

2541
01:25:11,566 --> 01:25:13,266
and then we'll go into the four prong money model

2542
01:25:13,266 --> 01:25:15,900
the four components the four types of offers that exist

2543
01:25:16,000 --> 01:25:18,100
all right so how we broke the gym industry

2544
01:25:18,100 --> 01:25:19,900
so I used to get gyms full

2545
01:25:19,900 --> 01:25:22,233
so what I just talked about earlier was my model

2546
01:25:22,233 --> 01:25:24,800
at gym launch but what created this

2547
01:25:24,800 --> 01:25:25,666
and the reason I'm telling you

2548
01:25:25,666 --> 01:25:28,000
the story is to show you how many different industries

2549
01:25:28,000 --> 01:25:31,466
this structure of creating a good money model works in

2550
01:25:31,600 --> 01:25:35,466
and so I used to open gyms at full capacity on day one

2551
01:25:35,466 --> 01:25:37,700
and so this is a video this was my first this video

2552
01:25:37,700 --> 01:25:40,400
this ad made me $10 million

2553
01:25:41,100 --> 01:25:45,200
so it was sick I was 26 and it was awesome

2554
01:25:45,366 --> 01:25:47,533
uh it is how you would imagine it sounds

2555
01:25:47,866 --> 01:25:49,266
um honestly

2556
01:25:49,266 --> 01:25:51,033
did feel like it was something I was doing was illegal

2557
01:25:51,033 --> 01:25:51,700
I found out later

2558
01:25:51,700 --> 01:25:53,800
it's completely legal to advertise and make money

2559
01:25:53,800 --> 01:25:55,800
it just sometimes the stars align

2560
01:25:56,100 --> 01:25:56,633
and so

2561
01:25:56,633 --> 01:25:58,966
what I would do is I would go into a neighborhood

2562
01:25:59,033 --> 01:26:00,300
and you know this one

2563
01:26:00,300 --> 01:26:03,100
I did 191 sign UPS in 19 days at 500 bucks a pop

2564
01:26:03,100 --> 01:26:05,666
and this is me holding up all the 500 dollar contracts

2565
01:26:05,800 --> 01:26:08,666
that I had sold like in the middle of nowhere alright

2566
01:26:08,666 --> 01:26:10,666
and so this is the old way that gyms worked

2567
01:26:10,666 --> 01:26:12,000
and the reason I'm I'm outlining this is

2568
01:26:12,000 --> 01:26:13,966
cause this might be how your business works

2569
01:26:14,000 --> 01:26:15,000
and in the gym industry

2570
01:26:15,000 --> 01:26:17,500
this is what all the gurus at the time were teaching

2571
01:26:17,500 --> 01:26:19,200
it was something that they called the LBO model

2572
01:26:19,200 --> 01:26:20,933
which has nothing to do with leverage buyouts

2573
01:26:20,966 --> 01:26:23,966
an LBO model in the gym world was a low barrier offer

2574
01:26:23,966 --> 01:26:25,400
alright so it's like trials

2575
01:26:25,666 --> 01:26:28,100
uh super discount things but the thing is

2576
01:26:28,100 --> 01:26:29,033
is I talked about earlier

2577
01:26:29,033 --> 01:26:31,066
having a discount thing as the front end

2578
01:26:31,066 --> 01:26:33,266
but then they didn't have anything else to sell

2579
01:26:33,400 --> 01:26:35,466
so the discount stuff works

2580
01:26:35,600 --> 01:26:37,566
but you gotta have the thing to sell

2581
01:26:37,566 --> 01:26:39,000
to make your money back

2582
01:26:39,000 --> 01:26:40,500
but this is how it used to work

2583
01:26:40,500 --> 01:26:45,233
so the old way that people did low barrier offers

2584
01:26:45,233 --> 01:26:46,433
was that they would run trials

2585
01:26:46,433 --> 01:26:48,566
so they'd run $19 months $21

2586
01:26:48,566 --> 01:26:51,633
21 days things like that and so right off the bat

2587
01:26:51,633 --> 01:26:53,433
if you had 10 people walking in the door

2588
01:26:53,433 --> 01:26:54,600
two would not buy

2589
01:26:54,666 --> 01:26:56,866
so now you got eight left who buy a trial

2590
01:26:56,866 --> 01:26:58,700
or buy the discount offer at 29 bucks

2591
01:26:58,700 --> 01:27:02,166
19 bucks $21 whatever now this guy doesn't convert

2592
01:27:02,166 --> 01:27:02,900
this guy doesn't convert

2593
01:27:02,900 --> 01:27:04,366
this guy doesn't convert this guy doesn't convert

2594
01:27:04,366 --> 01:27:06,000
this guy doesn't convert we get three

2595
01:27:06,000 --> 01:27:09,100
cause the industry average 35% of trials would convert

2596
01:27:09,100 --> 01:27:11,266
so not 35% of people who showed up

2597
01:27:11,266 --> 01:27:13,200
35% of people who started the trial

2598
01:27:13,200 --> 01:27:16,066
so being being generous on this one

2599
01:27:16,066 --> 01:27:19,033
three out of the eight continue on alright

2600
01:27:19,033 --> 01:27:23,066
so this is what the math looks like so 30 days later

2601
01:27:23,066 --> 01:27:25,133
our total gross profit is $600

2602
01:27:25,200 --> 01:27:29,366
our revenue per show up is $60

2603
01:27:29,466 --> 01:27:33,500
our revenue per trial is 75 okay

2604
01:27:35,800 --> 01:27:37,166
this is what we did

2605
01:27:37,966 --> 01:27:40,800
so we would get 10 people in the door

2606
01:27:41,100 --> 01:27:44,966
now we would know now we closed fewer off the bat

2607
01:27:45,566 --> 01:27:47,400
but we would sell the goal

2608
01:27:47,400 --> 01:27:49,933
so we get one person to take a 2 k package

2609
01:27:50,100 --> 01:27:51,800
the majority of the other ones to take

2610
01:27:51,800 --> 01:27:53,866
you know 500 dollar type program

2611
01:27:53,866 --> 01:27:55,400
and then somebody taking half that distance

2612
01:27:55,400 --> 01:27:57,500
of the 2,000 dollar person alright

2613
01:27:57,500 --> 01:27:59,300
so that's layer one

2614
01:27:59,833 --> 01:28:01,566
then we would upsell meals

2615
01:28:01,600 --> 01:28:03,266
because they're gonna want to have food

2616
01:28:03,400 --> 01:28:04,800
then we would upsell supplements

2617
01:28:04,800 --> 01:28:07,433
on average $85 of gross profit per person

2618
01:28:07,433 --> 01:28:08,900
not revenue gross profit

2619
01:28:09,233 --> 01:28:13,700
and then we'd get these two people to commit to a year

2620
01:28:13,700 --> 01:28:16,100
after their duration of their program

2621
01:28:16,100 --> 01:28:19,700
and then we'd get them to prepay for the year

2622
01:28:19,700 --> 01:28:21,500
with another discount on the back

2623
01:28:22,066 --> 01:28:25,100
and you could do all of this in 30 days

2624
01:28:26,033 --> 01:28:29,466
and so our total gross profit was 96 44

2625
01:28:29,466 --> 01:28:32,866
remember the old one 696

2626
01:28:32,866 --> 01:28:33,700
44

2627
01:28:34,433 --> 01:28:39,533
revenue per show $960 compared to 60 revenue per close

2628
01:28:39,633 --> 01:28:43,000
1928 in the first 28 days

2629
01:28:43,833 --> 01:28:45,800
this is how we broke the gym industry

2630
01:28:45,866 --> 01:28:47,733
when I say broke I really just mean fixed

2631
01:28:47,800 --> 01:28:49,500
we fixed the acquisition model

2632
01:28:50,900 --> 01:28:52,500
and so that's the math comparison

2633
01:28:52,500 --> 01:28:53,633
and so with the new way

2634
01:28:53,633 --> 01:28:57,866
my gyms could outspend gyms doing the old way 25 to 1

2635
01:28:57,866 --> 01:29:00,033
it wasn't even like coming to a

2636
01:29:00,033 --> 01:29:01,666
to a fist fight with a knife

2637
01:29:01,700 --> 01:29:04,866
it was coming to a fist fight with a B52 bomber

2638
01:29:04,866 --> 01:29:06,166
like we weren't even on the ground

2639
01:29:06,166 --> 01:29:07,033
we're just dropping bombs

2640
01:29:07,033 --> 01:29:08,766
like there's no there was no way to compete

2641
01:29:09,166 --> 01:29:11,266
and a lot of big franchises didn't

2642
01:29:11,300 --> 01:29:13,466
didn't catch up and basically went out of business

2643
01:29:13,466 --> 01:29:14,933
or became just like ghosts

2644
01:29:15,033 --> 01:29:16,400
like people just didn't renew and just kind of like

2645
01:29:16,400 --> 01:29:17,733
they fizzled out and faded

2646
01:29:17,900 --> 01:29:20,466
and so like this is also a message to the people who

2647
01:29:20,466 --> 01:29:21,900
who do lead industries

2648
01:29:22,466 --> 01:29:26,000
I was a young kid and I had this model

2649
01:29:26,166 --> 01:29:27,800
and the right move that they should have done

2650
01:29:27,800 --> 01:29:28,566
competitively

2651
01:29:28,566 --> 01:29:31,833
was take all my shit and immediately disseminate it

2652
01:29:31,833 --> 01:29:33,266
that would have been the right move

2653
01:29:33,433 --> 01:29:35,200
that's what Zuck did with Snapchat

2654
01:29:35,266 --> 01:29:36,033
and they had their stories

2655
01:29:36,033 --> 01:29:36,966
he just immediately like oop

2656
01:29:36,966 --> 01:29:39,066
I'm gonna take that distribute it immediately

2657
01:29:39,766 --> 01:29:41,566
but instead they postured against and were like

2658
01:29:41,566 --> 01:29:42,900
this guy doesn't know what he's doing

2659
01:29:42,900 --> 01:29:44,300
and then we ended up just destroying them

2660
01:29:44,300 --> 01:29:45,866
because the math is the math

2661
01:29:46,100 --> 01:29:47,966
like you cannot like that you didn't innovate it

2662
01:29:47,966 --> 01:29:49,400
but you can't execute on it

2663
01:29:49,466 --> 01:29:51,166
and so one thing that I also want to break

2664
01:29:51,166 --> 01:29:52,566
in terms of perspective here

2665
01:29:53,066 --> 01:29:55,133
is that as much as you may not like it

2666
01:29:55,200 --> 01:29:57,766
a business model is not patentable

2667
01:29:58,233 --> 01:29:59,366
it's not IP

2668
01:29:59,466 --> 01:30:02,300
an offer that you may create a great headline

2669
01:30:02,300 --> 01:30:03,800
a free six week challenge

2670
01:30:04,466 --> 01:30:07,533
not IP anyone can advertise an offer

2671
01:30:07,633 --> 01:30:09,500
and so it's a double edged sword

2672
01:30:09,500 --> 01:30:11,266
in terms of learning this power

2673
01:30:11,366 --> 01:30:13,266
because it is a speed game

2674
01:30:13,266 --> 01:30:16,200
because basically you wanna advertise the stuff

2675
01:30:16,200 --> 01:30:18,700
you wanna rip as much money out as you can

2676
01:30:18,833 --> 01:30:20,600
before the rest of the world catches up

2677
01:30:20,600 --> 01:30:21,433
and then guess what happens

2678
01:30:21,433 --> 01:30:22,633
when the rest of the world catches up

2679
01:30:22,633 --> 01:30:25,066
you do it again you innovate the model again

2680
01:30:25,166 --> 01:30:26,466
and so there's always gonna be followers

2681
01:30:26,466 --> 01:30:27,433
and there's always gonna be leaders

2682
01:30:27,433 --> 01:30:27,866
but the thing is

2683
01:30:27,866 --> 01:30:29,633
the leaders get to make 80% of the profits

2684
01:30:29,633 --> 01:30:31,366
because by the time everyone else catches up

2685
01:30:31,366 --> 01:30:34,300
we already pillaged the land using a more

2686
01:30:34,300 --> 01:30:35,100
you know

2687
01:30:35,466 --> 01:30:36,966
violent terminology you know

2688
01:30:36,966 --> 01:30:37,666
we we

2689
01:30:37,666 --> 01:30:40,066
we seeded and farmed the land and we reap the

2690
01:30:40,066 --> 01:30:42,000
the fruit of the the land that it gave us

2691
01:30:42,000 --> 01:30:42,800
whatever you get the idea

2692
01:30:42,800 --> 01:30:44,533
okay so uh

2693
01:30:44,700 --> 01:30:46,600
this was the this was the thing that broke it for them

2694
01:30:46,600 --> 01:30:48,066
so boom we had service

2695
01:30:48,066 --> 01:30:49,700
we sold the gold so we sold way higher ticket

2696
01:30:49,700 --> 01:30:51,233
instead of doing a 21 dollar thing

2697
01:30:51,233 --> 01:30:53,200
we sold uh nutrition and supplements

2698
01:30:53,200 --> 01:30:55,100
we sold continuity and then we did prepayment

2699
01:30:55,100 --> 01:30:57,400
so all four of these things we did in the first 30 days

2700
01:30:57,400 --> 01:30:59,200
and that's how we could drag the cash forward

2701
01:30:59,433 --> 01:31:01,500
alright and so if for some reason

2702
01:31:01,500 --> 01:31:04,033
someone didn't buy the first offer thing

2703
01:31:04,033 --> 01:31:05,700
we had a down sale flow we sold a goal

2704
01:31:05,700 --> 01:31:06,966
then we sell a smaller package

2705
01:31:06,966 --> 01:31:08,500
then we sell a free trial with penalty

2706
01:31:08,500 --> 01:31:10,100
then we sold a free trial with no commitment

2707
01:31:10,100 --> 01:31:11,700
and then we did a free orientation

2708
01:31:12,033 --> 01:31:12,866
and so what I mean is like

2709
01:31:12,866 --> 01:31:14,566
let's say somebody didn't want to do the free trial

2710
01:31:16,233 --> 01:31:17,866
so for example

2711
01:31:17,866 --> 01:31:20,966
these these people they didn't buy any service

2712
01:31:21,266 --> 01:31:22,800
but how do we get money out of them

2713
01:31:22,900 --> 01:31:24,133
we said hey no worries

2714
01:31:24,433 --> 01:31:26,500
why don't you just come for nutrition orientation

2715
01:31:26,500 --> 01:31:27,966
we just want to help you out for free

2716
01:31:28,166 --> 01:31:29,466
people come to nutrition orientation

2717
01:31:29,466 --> 01:31:30,900
not having signed up for the gym

2718
01:31:30,900 --> 01:31:33,466
and we'd sell them 300 bucks in supplements

2719
01:31:34,033 --> 01:31:35,800
so we still made money from nose

2720
01:31:36,000 --> 01:31:38,133
by selling them a different way to get to their goal

2721
01:31:38,366 --> 01:31:40,333
so that was the down sell flow for service

2722
01:31:40,366 --> 01:31:42,633
for supplements we would sell a full supplement bundle

2723
01:31:42,633 --> 01:31:45,233
then we'd sell a four pack uh with extras

2724
01:31:45,233 --> 01:31:46,766
so we'd add a couple pieces in

2725
01:31:46,766 --> 01:31:49,400
then we'd only downsell just to a four pack um

2726
01:31:49,400 --> 01:31:51,700
and then we'd have it on continuity then no continuity

2727
01:31:51,700 --> 01:31:52,966
then we do extras only

2728
01:31:52,966 --> 01:31:54,433
so we'd work our way down that whole thing

2729
01:31:54,433 --> 01:31:56,066
and then the meals flow same deal

2730
01:31:56,066 --> 01:31:58,400
we'd work our way from biggest all the way to smallest

2731
01:31:58,666 --> 01:32:00,700
and then continuity we go again

2732
01:32:00,700 --> 01:32:03,166
sell the goal smaller package and then month to month

2733
01:32:03,166 --> 01:32:03,966
and then finally

2734
01:32:03,966 --> 01:32:06,100
the prepayment is we prepay the whole package

2735
01:32:06,100 --> 01:32:07,900
prepay for a discount prepay the next month

2736
01:32:07,900 --> 01:32:09,233
and then we just get the commitment

2737
01:32:09,233 --> 01:32:12,200
just say fine you're in continuity now and all of this

2738
01:32:12,200 --> 01:32:13,000
if you're looking at the days

2739
01:32:13,000 --> 01:32:16,300
this is day 21 to 28 14 to 21

2740
01:32:16,866 --> 01:32:19,800
and these this is up front and this is within 48 hours

2741
01:32:20,433 --> 01:32:23,366
so all of these things are happening fast

2742
01:32:24,900 --> 01:32:27,366
alright so that is how we broke the gym industry

2743
01:32:27,433 --> 01:32:29,966
so now let's talk about all the things that I just did

2744
01:32:29,966 --> 01:32:30,833
but we're gonna chunk up

2745
01:32:30,833 --> 01:32:32,966
so you can apply it to any business alright

2746
01:32:33,100 --> 01:32:34,566
so there's attraction offers

2747
01:32:34,566 --> 01:32:35,566
upsell offers downsell offers

2748
01:32:35,566 --> 01:32:38,000
and continuity offers the objective of each of these

2749
01:32:38,000 --> 01:32:39,300
attraction offers is to liquidate

2750
01:32:39,300 --> 01:32:41,033
how much it costs you to get a customer

2751
01:32:41,033 --> 01:32:43,166
upsell offers are to maximize profit

2752
01:32:43,166 --> 01:32:45,933
downsell offers are to maximize conversion

2753
01:32:46,966 --> 01:32:48,500
continuity offers are a stabilized cash flow

2754
01:32:48,500 --> 01:32:51,500
in the business there are many ways to accomplish CFA

2755
01:32:51,566 --> 01:32:53,566
some businesses can do it with only one offer

2756
01:32:53,966 --> 01:32:55,100
some businesses get funding

2757
01:32:55,100 --> 01:32:56,600
so they don't need to break even to get customers

2758
01:32:56,600 --> 01:32:58,066
cause they have outside money that's injected

2759
01:32:58,066 --> 01:32:59,000
into their system

2760
01:32:59,100 --> 01:33:01,600
but for everyone else probably watching this

2761
01:33:01,600 --> 01:33:03,433
I will explain a model that I have seen emerge over

2762
01:33:03,433 --> 01:33:04,166
and over and over again

2763
01:33:04,166 --> 01:33:05,700
within the businesses that I built

2764
01:33:05,700 --> 01:33:07,200
so when I look at every single

2765
01:33:07,200 --> 01:33:08,466
amazing business that I've built

2766
01:33:08,466 --> 01:33:09,766
that's made a lot of money

2767
01:33:09,866 --> 01:33:12,700
they had these things pretty much in this sequence

2768
01:33:12,866 --> 01:33:14,266
and it doesn't happen all at once

2769
01:33:14,266 --> 01:33:16,433
it just often becomes something that you build towards

2770
01:33:16,433 --> 01:33:17,166
so to be very clear

2771
01:33:17,166 --> 01:33:19,000
I'm not saying you start with a fully fledged

2772
01:33:19,000 --> 01:33:19,433
money model

2773
01:33:19,433 --> 01:33:21,700
cause it will break your whole business in half

2774
01:33:21,700 --> 01:33:22,500
you wanna start with one

2775
01:33:22,500 --> 01:33:24,500
you start adding in layers like layers of paint

2776
01:33:24,500 --> 01:33:26,600
you just keep putting more and more layers on it

2777
01:33:27,100 --> 01:33:29,166
and so again you can build an amazing business

2778
01:33:29,166 --> 01:33:30,666
with just one or two of these things

2779
01:33:30,666 --> 01:33:32,233
and sometimes it's worth keeping it simple

2780
01:33:32,233 --> 01:33:33,666
and just doing that if you can scale with

2781
01:33:33,666 --> 01:33:36,300
I want to scale with as few offers as humanly possible

2782
01:33:36,433 --> 01:33:38,400
but I still want to maximize how much money I make

2783
01:33:38,400 --> 01:33:39,300
in the shortest period of time

2784
01:33:39,300 --> 01:33:42,266
so if I have to add more I will to enable me scaling

2785
01:33:42,266 --> 01:33:43,800
but I want to have as few as I can

2786
01:33:43,800 --> 01:33:43,866
because

2787
01:33:43,866 --> 01:33:45,900
I want to have as little operational drag as possible

2788
01:33:46,233 --> 01:33:46,700
alright

2789
01:33:46,700 --> 01:33:48,666
and so it has four prongs and four different vectors

2790
01:33:48,700 --> 01:33:50,600
and different offers that correspond to each objective

2791
01:33:50,600 --> 01:33:53,400
alright so this beautiful little image

2792
01:33:53,400 --> 01:33:57,166
took me a very long time to figure out alright

2793
01:33:57,300 --> 01:33:59,700
and so we have attraction offers

2794
01:33:59,700 --> 01:34:01,066
that bring people in the door

2795
01:34:01,100 --> 01:34:02,200
we have up sale offers

2796
01:34:02,200 --> 01:34:03,966
that typically happen immediately after that

2797
01:34:03,966 --> 01:34:05,266
get people to buy more stuff

2798
01:34:05,266 --> 01:34:06,966
we have down sale offers for people who

2799
01:34:06,966 --> 01:34:08,700
who don't say yes to either of these things

2800
01:34:08,700 --> 01:34:10,000
so we can still get conversions

2801
01:34:10,000 --> 01:34:11,533
then potentially up sale them later

2802
01:34:11,633 --> 01:34:12,800
and then we have continuity

2803
01:34:12,800 --> 01:34:13,666
offers on the back

2804
01:34:13,666 --> 01:34:16,500
which get them into a recurring cash flow

2805
01:34:16,500 --> 01:34:18,433
payment to the business and so

2806
01:34:18,433 --> 01:34:19,633
let's explain how they all work together

2807
01:34:19,633 --> 01:34:21,966
to make a symphony of CFA

2808
01:34:22,300 --> 01:34:24,900
alright so here we turn strangers into customers

2809
01:34:25,100 --> 01:34:29,366
get come spend more money lower cack is to get people

2810
01:34:29,400 --> 01:34:30,600
excuse me is to get people to say yes

2811
01:34:30,600 --> 01:34:31,633
when they would have said no

2812
01:34:31,633 --> 01:34:33,400
which is what you offer when they say no

2813
01:34:34,000 --> 01:34:36,800
and then continuity you keep people buying alright

2814
01:34:36,800 --> 01:34:38,566
which is meaning you get them to buy again

2815
01:34:38,800 --> 01:34:40,533
alright so those are the four prongs

2816
01:34:40,766 --> 01:34:42,733
and so like I said earlier

2817
01:34:42,800 --> 01:34:44,500
this is just showing it through that same model

2818
01:34:44,500 --> 01:34:46,166
the gym launch model so we attract

2819
01:34:46,166 --> 01:34:47,666
and we use the books and the lead magnets

2820
01:34:47,666 --> 01:34:48,833
and the podcast things like that

2821
01:34:48,833 --> 01:34:52,500
it's free then we sold them an upfront cash thing

2822
01:34:52,700 --> 01:34:54,766
uh so we generated upfront cash with the next sale

2823
01:34:54,766 --> 01:34:55,566
with the uh

2824
01:34:56,033 --> 01:34:59,966
the uh 16 weeks then we would maximize profit

2825
01:34:59,966 --> 01:35:01,466
by getting them to upsell supplements

2826
01:35:01,466 --> 01:35:03,366
then sell our supplements on our behalf

2827
01:35:03,366 --> 01:35:04,366
and then we bought continuity

2828
01:35:04,366 --> 01:35:05,666
which is the three year licensing

2829
01:35:05,666 --> 01:35:06,866
which is the 42,000 a year

2830
01:35:06,866 --> 01:35:08,866
and note I'm not saying that you have to use all four

2831
01:35:08,866 --> 01:35:09,233
I'm just saying

2832
01:35:09,233 --> 01:35:11,366
I noticed that my most successful companies did

2833
01:35:11,366 --> 01:35:13,233
and many companies do only use one or two

2834
01:35:13,233 --> 01:35:15,166
OK so let's look at the model that I showed earlier

2835
01:35:15,166 --> 01:35:17,300
with weight loss we had a free promo

2836
01:35:17,300 --> 01:35:18,300
get people in

2837
01:35:18,400 --> 01:35:20,166
we got cash by selling challenges

2838
01:35:20,166 --> 01:35:21,033
that they can get their money back

2839
01:35:21,033 --> 01:35:22,666
or sell the goal either one

2840
01:35:22,833 --> 01:35:24,400
then we would sell supplements

2841
01:35:24,800 --> 01:35:26,366
then we would sell memberships

2842
01:35:28,566 --> 01:35:31,500
all the way through rental car

2843
01:35:32,066 --> 01:35:33,900
19 bucks a day gets me in the door

2844
01:35:35,366 --> 01:35:37,433
then pretty much everything was up sales

2845
01:35:37,433 --> 01:35:39,033
so these kind of all happened at once

2846
01:35:39,033 --> 01:35:40,800
so I'm saying like this is just a model

2847
01:35:40,800 --> 01:35:42,300
like it's it's more about the business

2848
01:35:42,300 --> 01:35:44,100
so we had all the insurance

2849
01:35:44,100 --> 01:35:45,700
the late pay the late payback

2850
01:35:45,700 --> 01:35:48,700
the gas the upgrade in the car all that stuff alright

2851
01:35:48,700 --> 01:35:50,866
and then continuity is where they say great

2852
01:35:50,866 --> 01:35:52,333
do you want to enter our rewards program

2853
01:35:52,600 --> 01:35:53,266
and so great

2854
01:35:53,266 --> 01:35:55,566
money models can include multiple in the same business

2855
01:35:55,833 --> 01:35:57,833
so you can notice here like there's some here

2856
01:35:57,833 --> 01:35:59,200
there's multiples here there was insurance

2857
01:35:59,200 --> 01:36:00,066
there's multiple upsells

2858
01:36:00,066 --> 01:36:01,266
so it's not like you only have to have one

2859
01:36:01,266 --> 01:36:02,400
you can have multiple things there

2860
01:36:02,400 --> 01:36:03,300
through the rest of our time together

2861
01:36:03,300 --> 01:36:04,233
I'll show you genius ways

2862
01:36:04,233 --> 01:36:05,833
that other entrepreneurs have stacked and recombined

2863
01:36:05,833 --> 01:36:06,966
these things make lots of money

2864
01:36:06,966 --> 01:36:09,666
and I will only show the ones that I also then used

2865
01:36:09,666 --> 01:36:11,500
modeled that in my businesses

2866
01:36:11,500 --> 01:36:13,300
and what we did all right

2867
01:36:14,400 --> 01:36:16,766
kajama four types of offers

2868
01:36:17,000 --> 01:36:18,866
so with that being said

2869
01:36:18,866 --> 01:36:21,200
we will begin our ride along apprenticeship

2870
01:36:21,200 --> 01:36:22,066
which is the next one

2871
01:36:24,300 --> 01:36:27,033
alright so we covered how businesses make money

2872
01:36:27,033 --> 01:36:29,066
the three prongs of client finance acquisition

2873
01:36:29,066 --> 01:36:30,500
the three levels of advertising

2874
01:36:30,500 --> 01:36:32,166
they create the best version of CFA

2875
01:36:32,166 --> 01:36:34,466
how money models work the four types of offers

2876
01:36:34,500 --> 01:36:37,366
now we begin our ride along apprenticeship alright

2877
01:36:37,400 --> 01:36:39,400
so we transition to the radical

2878
01:36:39,400 --> 01:36:41,100
simple skills are easy to teach

2879
01:36:41,266 --> 01:36:42,666
some skills are complex

2880
01:36:42,666 --> 01:36:44,600
skills that have many skills bundled within them

2881
01:36:44,600 --> 01:36:45,666
that take longer

2882
01:36:45,700 --> 01:36:47,566
to get a big enough sample size to be proficient

2883
01:36:47,566 --> 01:36:48,766
so for example if you're looking at deals

2884
01:36:48,766 --> 01:36:49,766
it takes a very long time

2885
01:36:49,766 --> 01:36:50,666
to see lots of different deals

2886
01:36:50,666 --> 01:36:52,066
to be able to recognize patterns

2887
01:36:52,066 --> 01:36:53,766
it takes a long time to look at lots of different

2888
01:36:53,833 --> 01:36:55,266
surgical cases of different patients

2889
01:36:55,266 --> 01:36:56,900
to be able to recognize patterns

2890
01:36:56,900 --> 01:36:58,200
and so it's more that the larger

2891
01:36:58,200 --> 01:37:00,033
meta skill of pattern recognition

2892
01:37:00,033 --> 01:37:01,433
takes a longer time to learn

2893
01:37:01,433 --> 01:37:03,000
and that's typically why people work

2894
01:37:03,000 --> 01:37:04,600
with an expert for periods of time

2895
01:37:04,600 --> 01:37:07,433
in order to get that skill set alright

2896
01:37:07,433 --> 01:37:08,833
and so advertising

2897
01:37:08,833 --> 01:37:09,566
and creating money models

2898
01:37:09,566 --> 01:37:11,200
are some of those harder skills

2899
01:37:11,200 --> 01:37:13,900
in my opinion it takes time to see those patterns

2900
01:37:13,900 --> 01:37:15,166
and to know what to look for

2901
01:37:15,166 --> 01:37:17,533
and the better you get the better the student you are

2902
01:37:18,366 --> 01:37:21,033
and so there's three steps to teaching as I see it

2903
01:37:21,033 --> 01:37:22,266
document demonstrate duplicate

2904
01:37:22,266 --> 01:37:23,700
I cover this in my leads book

2905
01:37:23,833 --> 01:37:25,066
and so a good teacher

2906
01:37:25,066 --> 01:37:26,600
make sure that you do all three of these things

2907
01:37:26,600 --> 01:37:28,633
you document you demonstrate they duplicate right

2908
01:37:28,633 --> 01:37:29,700
they being well

2909
01:37:29,700 --> 01:37:33,533
flip this I I document I demonstrate you duplicate okay

2910
01:37:33,566 --> 01:37:35,066
now the problem with me training

2911
01:37:35,066 --> 01:37:39,233
like this one to many is that I can't see you do it

2912
01:37:39,233 --> 01:37:41,500
right so I can only do the first two right

2913
01:37:41,500 --> 01:37:43,166
it'll be up to you to duplicate this

2914
01:37:43,166 --> 01:37:44,766
but I will teach you exactly

2915
01:37:44,766 --> 01:37:46,733
how I Learned all these money models

2916
01:37:46,766 --> 01:37:49,700
so that you can get my first decade of experience

2917
01:37:49,866 --> 01:37:54,500
in a day and shortcut your path to your goals alright

2918
01:37:54,500 --> 01:37:55,200
so it's me taking

2919
01:37:55,200 --> 01:37:58,833
you know 10 or now 13 years or 14 whatever um

2920
01:37:58,833 --> 01:38:01,200
and compressing it into a full day

2921
01:38:01,200 --> 01:38:02,600
and I'm gonna tell you the stories

2922
01:38:02,600 --> 01:38:03,700
how I Learned them

2923
01:38:03,700 --> 01:38:06,100
so that hopefully you can kind of relive to the best

2924
01:38:06,566 --> 01:38:09,766
way possible as though you were with me alright

2925
01:38:09,766 --> 01:38:11,200
and the reason I felt compelled to share these

2926
01:38:11,200 --> 01:38:12,000
money models is

2927
01:38:12,000 --> 01:38:15,533
I made a very tactical video with 3 money models

2928
01:38:15,833 --> 01:38:17,066
2 years ago

2929
01:38:17,266 --> 01:38:19,900
and the amount of messages that I got from people

2930
01:38:19,900 --> 01:38:21,400
being like I made 50 grand from that video

2931
01:38:21,400 --> 01:38:22,066
I made 100 grand

2932
01:38:22,066 --> 01:38:24,700
I made a million dollars on that video I was like

2933
01:38:24,700 --> 01:38:28,700
oh people get the offer they get the lead stuff

2934
01:38:28,700 --> 01:38:29,500
but they're not

2935
01:38:29,500 --> 01:38:31,466
they don't understand how to put the money

2936
01:38:31,500 --> 01:38:33,900
how to connect that with them making a profit

2937
01:38:33,900 --> 01:38:36,300
and then being able to scale their advertising

2938
01:38:36,466 --> 01:38:38,866
through sequencing offers together

2939
01:38:39,033 --> 01:38:40,766
that was the thing that I didn't know

2940
01:38:40,766 --> 01:38:42,100
that people were putting together

2941
01:38:42,100 --> 01:38:42,566
and I was like

2942
01:38:42,566 --> 01:38:45,566
oh and then that is why I make these okay

2943
01:38:45,566 --> 01:38:46,000
so think

2944
01:38:46,000 --> 01:38:48,966
of this as entering my private Money Models journal

2945
01:38:49,066 --> 01:38:50,033
and so each of these stories

2946
01:38:50,033 --> 01:38:52,200
actually was in a journal of mine that I've kept for

2947
01:38:52,200 --> 01:38:53,566
like whenever I see anything cool

2948
01:38:53,566 --> 01:38:54,700
I just write it down I'm like ah

2949
01:38:54,700 --> 01:38:56,566
I'll save this for later like it's kind of like a

2950
01:38:56,633 --> 01:38:59,200
like a magic card or a Pokemon card or a like a

2951
01:38:59,200 --> 01:39:01,466
a play that you wanna pull out at a later time

2952
01:39:01,466 --> 01:39:03,500
like they're they're basically like scratch off winners

2953
01:39:03,500 --> 01:39:04,766
like they've already been scratched off

2954
01:39:04,766 --> 01:39:05,866
you just got to turn in for money

2955
01:39:05,866 --> 01:39:07,033
like these things work

2956
01:39:07,033 --> 01:39:08,966
and my notes were scattered all over the place

2957
01:39:08,966 --> 01:39:10,600
and then this book was me consolidating

2958
01:39:10,600 --> 01:39:12,700
all of them in one place alright

2959
01:39:12,700 --> 01:39:13,833
so the rest of this book

2960
01:39:13,833 --> 01:39:16,000
in training will be all the tiny tactics I picked up

2961
01:39:16,000 --> 01:39:16,900
that make leads and offers

2962
01:39:16,900 --> 01:39:18,266
come together into money models

2963
01:39:18,433 --> 01:39:18,700
alright

2964
01:39:18,700 --> 01:39:21,200
so each money model will have a visual or digital

2965
01:39:21,200 --> 01:39:23,066
they'll have a description examples

2966
01:39:23,066 --> 01:39:24,766
important points summary

2967
01:39:24,766 --> 01:39:25,633
and then uh

2968
01:39:25,633 --> 01:39:28,100
this is me making a reminder that if you ever find any

2969
01:39:28,266 --> 01:39:29,400
uh in out in the wild

2970
01:39:29,400 --> 01:39:29,800
you're like oh

2971
01:39:29,800 --> 01:39:31,300
this is totally different and not covering the book

2972
01:39:31,300 --> 01:39:33,300
just email it to me at value acquisition dot com

2973
01:39:33,300 --> 01:39:35,100
I will mention you um

2974
01:39:35,266 --> 01:39:35,866
if it's sweet I'm

2975
01:39:35,866 --> 01:39:36,966
I'm gonna be honest like if it

2976
01:39:36,966 --> 01:39:38,966
if you nine times out of 10 people

2977
01:39:38,966 --> 01:39:39,966
like this is brand new I'm like

2978
01:39:39,966 --> 01:39:41,766
that's just a free trial uh

2979
01:39:41,800 --> 01:39:42,900
but but

2980
01:39:43,433 --> 01:39:44,200
but uh

2981
01:39:44,200 --> 01:39:45,800
but if you do have something novel

2982
01:39:45,800 --> 01:39:47,066
I will absolutely blast it

2983
01:39:47,066 --> 01:39:48,066
and give you all the credit in the world

2984
01:39:48,066 --> 01:39:48,900
cause I just want

2985
01:39:48,900 --> 01:39:50,666
I want this to be a living thing for monetization

2986
01:39:50,666 --> 01:39:52,366
it's just like this one place that like

2987
01:39:52,366 --> 01:39:55,400
it needs encyclopedia of of offers okay

2988
01:39:55,400 --> 01:39:57,700
for everyone who thinks this won't work for my business

2989
01:39:57,933 --> 01:39:59,166
Wanna bet uh

2990
01:39:59,166 --> 01:40:01,033
every business can use any of these money models

2991
01:40:01,033 --> 01:40:01,666
I'm about to share

2992
01:40:01,666 --> 01:40:03,566
I give so many examples to show you how

2993
01:40:03,566 --> 01:40:05,233
so instead of just saying uh

2994
01:40:05,233 --> 01:40:07,633
that just say how could I use this for my business

2995
01:40:07,633 --> 01:40:10,100
how can I make this work and you will find the answer

2996
01:40:10,100 --> 01:40:11,100
what would it take

2997
01:40:11,966 --> 01:40:14,866
alright so here's my big advertising lawman disclaimer

2998
01:40:15,566 --> 01:40:17,100
there are organizations whose sole

2999
01:40:17,200 --> 01:40:18,800
responsibility is punishing businesses

3000
01:40:18,800 --> 01:40:20,166
using deceptive practices

3001
01:40:20,200 --> 01:40:21,900
you must always observe the law

3002
01:40:21,966 --> 01:40:23,500
law differs by city state

3003
01:40:23,500 --> 01:40:24,900
country and time period

3004
01:40:24,900 --> 01:40:27,066
so at the time of me recording this to my knowledge

3005
01:40:27,066 --> 01:40:28,766
the things that we're doing are allowed

3006
01:40:28,933 --> 01:40:30,300
in the state that I'm currently in

3007
01:40:30,300 --> 01:40:31,933
in the United States today

3008
01:40:32,266 --> 01:40:34,266
I am not saying that you should do these

3009
01:40:34,300 --> 01:40:35,600
these are hypothetical models

3010
01:40:35,600 --> 01:40:36,700
to think things through

3011
01:40:36,700 --> 01:40:38,766
that comply with your local area and time period

3012
01:40:38,766 --> 01:40:39,766
if it's in the future

3013
01:40:39,766 --> 01:40:41,366
which it will be if you're watching this

3014
01:40:41,400 --> 01:40:43,233
so I tell stories of how I Learned things

3015
01:40:43,233 --> 01:40:44,566
under the Assumption that the business owners

3016
01:40:44,566 --> 01:40:47,000
I Learned them from did their legal diligence

3017
01:40:47,066 --> 01:40:47,833
went in doubt

3018
01:40:47,833 --> 01:40:50,500
give people their money back and just get better

3019
01:40:50,500 --> 01:40:52,100
it's less effort to get another customer

3020
01:40:52,100 --> 01:40:53,200
than to fix a reputation so

3021
01:40:53,200 --> 01:40:55,300
I accept zero responsibility for actions that you take

3022
01:40:55,300 --> 01:40:56,300
or don't take as a

3023
01:40:56,600 --> 01:40:57,400
result of this training

3024
01:40:57,633 --> 01:40:59,500
do your own due diligence within the laws of your area

3025
01:40:59,500 --> 01:41:01,600
and industry and time period Huzzah

3026
01:41:01,833 --> 01:41:03,200
and with that being said

3027
01:41:03,200 --> 01:41:05,566
this now begins our ride along apprenticeship

3028
01:41:07,366 --> 01:41:10,566
so we are now officially in our apprenticeship

3029
01:41:10,566 --> 01:41:11,566
our digital apprenticeship

3030
01:41:11,566 --> 01:41:12,733
our virtual apprenticeship

3031
01:41:12,766 --> 01:41:14,866
let us begin with attraction offers

3032
01:41:15,300 --> 01:41:16,833
so what is an attraction offer

3033
01:41:16,833 --> 01:41:19,100
the free versus discount continue in the lineup alright

3034
01:41:19,100 --> 01:41:21,366
so an attraction offer generates leads

3035
01:41:21,366 --> 01:41:22,433
and converts them into customers

3036
01:41:22,433 --> 01:41:24,700
that's what it does they turn advertising into money

3037
01:41:24,700 --> 01:41:26,866
by offering something free or at a discount

3038
01:41:26,900 --> 01:41:29,366
we do this because everyone wants a great deal

3039
01:41:29,366 --> 01:41:30,566
in a great deal

3040
01:41:30,566 --> 01:41:33,766
customers get far more value than the price they pay

3041
01:41:33,966 --> 01:41:36,366
strangers can only take your word on the value

3042
01:41:36,366 --> 01:41:38,400
but they actually understand the price

3043
01:41:38,566 --> 01:41:41,233
for that reason discounts make anything

3044
01:41:41,233 --> 01:41:43,200
a great deal to just about anyone

3045
01:41:43,200 --> 01:41:44,433
and the greater the discount

3046
01:41:44,433 --> 01:41:45,366
the better the deal

3047
01:41:45,366 --> 01:41:48,066
so the greatest discount of all being free

3048
01:41:48,066 --> 01:41:49,900
so free to discount continue

3049
01:41:49,900 --> 01:41:51,500
this is a visual representation

3050
01:41:51,500 --> 01:41:52,866
of what I alluded to earlier

3051
01:41:52,866 --> 01:41:56,000
but 100% off versus 0% off

3052
01:41:56,000 --> 01:41:58,466
so this is free this is uh full price

3053
01:41:58,466 --> 01:42:00,900
and then this is the also lowest demand

3054
01:42:00,900 --> 01:42:03,000
when you have full price versus highest demand

3055
01:42:03,000 --> 01:42:05,100
which is free so the more you move this way

3056
01:42:05,100 --> 01:42:06,800
the higher the demand the more you have

3057
01:42:06,800 --> 01:42:08,066
you give off pretty much

3058
01:42:08,066 --> 01:42:09,966
that's how it works the lineup

3059
01:42:09,966 --> 01:42:11,700
so this is the lineup

3060
01:42:11,700 --> 01:42:14,300
these are the plays that I'm going to explain to you

3061
01:42:14,300 --> 01:42:17,100
we've got our win your money back giveaways

3062
01:42:17,166 --> 01:42:18,866
decoy offer buy X

3063
01:42:18,866 --> 01:42:21,900
get y free pay less now or pay more later

3064
01:42:21,900 --> 01:42:23,233
and then free with consumption

3065
01:42:23,233 --> 01:42:25,500
this one is not in the book FYI

3066
01:42:25,700 --> 01:42:28,800
so with that being said let us begin

3067
01:42:30,766 --> 01:42:33,300
so we start with our very first money model in the book

3068
01:42:33,300 --> 01:42:34,733
which is an attraction offer

3069
01:42:34,733 --> 01:42:36,600
win your money back so

3070
01:42:36,666 --> 01:42:37,366
win your money back

3071
01:42:37,366 --> 01:42:39,933
is one of these incredibly sexy offers

3072
01:42:39,933 --> 01:42:41,166
that I start with

3073
01:42:41,166 --> 01:42:43,566
because it's made me more money than any other offer

3074
01:42:43,566 --> 01:42:44,866
that I'm going to show you

3075
01:42:45,133 --> 01:42:45,966
let's dive in

3076
01:42:45,966 --> 01:42:47,566
we're gonna go through how I Learned it the description

3077
01:42:47,566 --> 01:42:49,933
the examples important points and summary alright

3078
01:42:49,933 --> 01:42:51,100
so this is my beautiful doodle

3079
01:42:51,600 --> 01:42:53,300
that exemplifies what this is

3080
01:42:53,466 --> 01:42:55,733
so I was in this gym mastermind

3081
01:42:55,733 --> 01:42:57,666
where I signed up before I had a gym

3082
01:42:57,666 --> 01:42:59,166
because I wanted to learn about the gym business

3083
01:42:59,166 --> 01:43:01,400
and this guy Danny uh

3084
01:43:01,666 --> 01:43:05,300
said he had a client uh say no and then said

3085
01:43:05,300 --> 01:43:06,000
well

3086
01:43:06,000 --> 01:43:09,100
I'll pay you 500 bucks and you can train me one on one

3087
01:43:09,100 --> 01:43:13,266
and if I lose 20 pounds in eight weeks um

3088
01:43:13,266 --> 01:43:14,166
you give me the money back

3089
01:43:14,166 --> 01:43:16,566
but I'll let you use my you know my pictures

3090
01:43:16,866 --> 01:43:19,066
and so you know Danny was like

3091
01:43:19,066 --> 01:43:21,100
well I'd rather take the money than not take the money

3092
01:43:21,200 --> 01:43:23,133
and so he did the deal

3093
01:43:23,133 --> 01:43:25,766
the dude got amazing results and the thing is

3094
01:43:25,766 --> 01:43:27,533
is that once the guy got amazing results

3095
01:43:27,533 --> 01:43:29,533
he advertised the before and after of this dude

3096
01:43:29,533 --> 01:43:30,166
and he got like

3097
01:43:30,166 --> 01:43:33,400
13 more customers from advertising this guy's results

3098
01:43:33,866 --> 01:43:34,566
and so

3099
01:43:34,566 --> 01:43:37,233
he started talking about that at this mastermind

3100
01:43:37,366 --> 01:43:40,166
we then took it at the gym that I was at with Sam

3101
01:43:40,166 --> 01:43:42,366
and we tried a six week version of it to shorten it

3102
01:43:42,366 --> 01:43:44,566
it was still one on one PT personal training

3103
01:43:44,966 --> 01:43:49,533
and so then I had the idea of hey 1

3104
01:43:49,533 --> 01:43:50,766
let's see if we run ads for this

3105
01:43:50,766 --> 01:43:51,466
instead of just being like

3106
01:43:51,466 --> 01:43:52,866
a thing that we tell our customers

3107
01:43:52,933 --> 01:43:54,600
and 2 what if we made it large group

3108
01:43:54,600 --> 01:43:55,600
instead of personal training

3109
01:43:56,100 --> 01:43:59,400
and so those two changes took this from

3110
01:43:59,400 --> 01:44:00,933
this is a profitable thing

3111
01:44:00,933 --> 01:44:03,233
to this being a money nuclear bomb

3112
01:44:03,933 --> 01:44:05,033
and so

3113
01:44:05,600 --> 01:44:08,733
we then switched it to a free and non free versions

3114
01:44:08,733 --> 01:44:10,533
with credit back and money back guarantees

3115
01:44:10,533 --> 01:44:12,200
which I'll explain in more detail

3116
01:44:12,200 --> 01:44:13,700
alright so that's how I Learned it

3117
01:44:13,700 --> 01:44:14,566
and it was an iteration I mean

3118
01:44:14,566 --> 01:44:17,300
this was like a year two years

3119
01:44:17,300 --> 01:44:17,900
before we Learned

3120
01:44:17,900 --> 01:44:19,466
every single thing that I'm gonna share with you

3121
01:44:19,466 --> 01:44:21,233
in like eight or 10 minutes

3122
01:44:21,366 --> 01:44:22,800
so now that's how I Learned it

3123
01:44:22,800 --> 01:44:23,966
let's go into the description

3124
01:44:23,966 --> 01:44:25,600
alright what does this thing even mean

3125
01:44:25,600 --> 01:44:27,500
so a win your money back offer works like this

3126
01:44:27,500 --> 01:44:29,200
so you set a goal for your customer

3127
01:44:29,200 --> 01:44:31,300
and then you tell them how to reach it

3128
01:44:31,300 --> 01:44:32,666
and if they reach it

3129
01:44:32,666 --> 01:44:34,666
then they qualify to get their money back

3130
01:44:34,666 --> 01:44:36,633
or get it back as store credit

3131
01:44:36,900 --> 01:44:39,733
and so there's kind of three versions of this

3132
01:44:39,733 --> 01:44:41,266
so version one is you just

3133
01:44:41,266 --> 01:44:43,366
they bet that they're gonna get results

3134
01:44:43,700 --> 01:44:44,533
they bet

3135
01:44:44,533 --> 01:44:46,366
that they're gonna take a certain set of actions

3136
01:44:46,400 --> 01:44:46,866
or they

3137
01:44:46,866 --> 01:44:49,433
bet that they're gonna do a combination of both

3138
01:44:49,466 --> 01:44:53,233
and so let's walk through each of them so with results

3139
01:44:53,500 --> 01:44:56,166
no matter what they do if the customer gets the result

3140
01:44:56,166 --> 01:44:58,400
then they win the money back so for example

3141
01:44:58,400 --> 01:44:59,600
making X dollars a month

3142
01:44:59,600 --> 01:45:02,600
getting y customers losing Z pounds so losing 20 pounds

3143
01:45:02,600 --> 01:45:04,133
you can starve yourself not show up to anything

3144
01:45:04,133 --> 01:45:05,733
but if you lose 20 pounds you get the money back right

3145
01:45:05,733 --> 01:45:06,166
basically

3146
01:45:06,166 --> 01:45:08,466
they bet on their ability to just reach the goal

3147
01:45:09,400 --> 01:45:10,466
the second version of this

3148
01:45:10,466 --> 01:45:12,866
is that you hold them accountable to doing actions

3149
01:45:12,866 --> 01:45:14,133
instead of getting results

3150
01:45:14,133 --> 01:45:16,200
so no matter what results they get

3151
01:45:16,333 --> 01:45:18,800
if the customer does what you tell them to

3152
01:45:18,800 --> 01:45:21,300
then they qualify to win their money back

3153
01:45:21,300 --> 01:45:23,933
so for example they attend all sessions

3154
01:45:23,933 --> 01:45:24,600
calls meetings

3155
01:45:24,600 --> 01:45:26,133
they log progress they take pictures

3156
01:45:26,133 --> 01:45:27,633
they do assigned homework

3157
01:45:27,733 --> 01:45:30,633
they bet on their ability to follow directions

3158
01:45:30,966 --> 01:45:34,166
that's the bet or you do both

3159
01:45:34,166 --> 01:45:36,600
is that they have to both follow your directions

3160
01:45:36,800 --> 01:45:39,200
and they have to get the goal

3161
01:45:39,200 --> 01:45:40,766
now the thing with both is

3162
01:45:40,866 --> 01:45:41,666
often times

3163
01:45:41,666 --> 01:45:45,366
a customer doesn't have the skill to reach the goal

3164
01:45:45,366 --> 01:45:47,500
which is why giving them the directions

3165
01:45:47,533 --> 01:45:50,066
and tying them both together can be important

3166
01:45:50,266 --> 01:45:52,400
to getting them the best results possible

3167
01:45:52,700 --> 01:45:53,666
as an aside

3168
01:45:53,666 --> 01:45:56,366
you want to tie the actions that you require them to do

3169
01:45:56,366 --> 01:45:57,700
to qualify for the refund

3170
01:45:57,866 --> 01:46:00,266
with the actions that do two things 1

3171
01:46:00,266 --> 01:46:01,666
that advertise your business and 2

3172
01:46:01,666 --> 01:46:02,866
that get them the best results

3173
01:46:04,266 --> 01:46:05,566
alright so

3174
01:46:06,466 --> 01:46:07,900
what ends up happening with the win

3175
01:46:07,900 --> 01:46:09,066
your money back offer

3176
01:46:09,166 --> 01:46:11,400
is that it becomes a high cash flow

3177
01:46:11,400 --> 01:46:13,100
choreographed onboarding

3178
01:46:13,133 --> 01:46:15,300
so if you currently onboard customers

3179
01:46:15,566 --> 01:46:17,366
then you're not getting paid for it

3180
01:46:17,366 --> 01:46:18,800
it's a cost to your business

3181
01:46:19,133 --> 01:46:20,966
and so I would rather make it a revenue

3182
01:46:20,966 --> 01:46:22,233
generator for my business

3183
01:46:22,366 --> 01:46:23,800
and so the nice thing is that it works

3184
01:46:23,800 --> 01:46:26,233
even for people who don't come in for free offers

3185
01:46:26,233 --> 01:46:28,666
so this offer works so well when people came in

3186
01:46:28,666 --> 01:46:30,066
just cause the referrals and what not

3187
01:46:30,066 --> 01:46:31,500
I still gave them this offer

3188
01:46:31,500 --> 01:46:32,733
because people got better results

3189
01:46:32,733 --> 01:46:34,233
they were more invested in this fund

3190
01:46:34,266 --> 01:46:35,500
and so we got better

3191
01:46:35,500 --> 01:46:37,433
results out of this than any other program

3192
01:46:37,500 --> 01:46:40,266
and so a lot of people think that we made the money on

3193
01:46:40,266 --> 01:46:41,800
the people who didn't hit the goal

3194
01:46:42,066 --> 01:46:43,100
couldn't be further from the truth

3195
01:46:43,100 --> 01:46:44,133
the people who didn't hit the goal

3196
01:46:44,133 --> 01:46:44,600
a lot of times

3197
01:46:44,600 --> 01:46:46,266
they wouldn't necessarily want to become customers

3198
01:46:46,333 --> 01:46:50,400
we had 78% success rates of people hitting their goal

3199
01:46:50,933 --> 01:46:52,900
the magic was again

3200
01:46:52,900 --> 01:46:55,133
I didn't wait till the end of their program anyways

3201
01:46:55,133 --> 01:46:56,766
I would be selling them upselling them

3202
01:46:56,766 --> 01:46:58,900
at three weeks into their six week thing

3203
01:46:58,933 --> 01:47:00,066
and so I'd say hey

3204
01:47:00,066 --> 01:47:01,466
you're down 12 pounds

3205
01:47:02,366 --> 01:47:03,200
if you lose eight more

3206
01:47:03,200 --> 01:47:04,700
you're gonna be happy forever they would be like

3207
01:47:04,700 --> 01:47:05,666
no and you're like OK

3208
01:47:05,666 --> 01:47:06,766
well you wanna lose 50 right

3209
01:47:06,766 --> 01:47:07,866
they're like yeah I'm like OK

3210
01:47:07,866 --> 01:47:08,666
well

3211
01:47:08,733 --> 01:47:10,800
so you realize it's not about these six weeks they say

3212
01:47:10,800 --> 01:47:11,200
I'm like great

3213
01:47:11,200 --> 01:47:12,733
then you won the challenge as far as I'm concerned

3214
01:47:12,733 --> 01:47:14,300
cause you realize it's about a lifestyle change

3215
01:47:14,300 --> 01:47:16,366
not a six week you know weight loss thing

3216
01:47:16,366 --> 01:47:17,700
I just use that to get you in

3217
01:47:17,700 --> 01:47:18,800
but what I really want

3218
01:47:18,800 --> 01:47:20,133
is for you to make this big change

3219
01:47:20,133 --> 01:47:21,366
and so if you're good with it

3220
01:47:21,366 --> 01:47:22,866
what I wanna do is take this money

3221
01:47:22,900 --> 01:47:23,800
and I wanna give it to you

3222
01:47:23,800 --> 01:47:25,300
back to you as though you've already won

3223
01:47:25,300 --> 01:47:27,366
and let's just credit towards the main goal you have

3224
01:47:27,933 --> 01:47:30,966
and so by doing that we could take the short term goal

3225
01:47:30,966 --> 01:47:32,366
and flip it into the long term goal

3226
01:47:33,933 --> 01:47:37,066
and so this particular model of acquisition this offer

3227
01:47:37,300 --> 01:47:38,900
um works well with businesses

3228
01:47:38,900 --> 01:47:40,366
that require customers to do a lot

3229
01:47:40,366 --> 01:47:41,666
in order to be successful

3230
01:47:41,733 --> 01:47:43,900
and so there's some businesses where like

3231
01:47:43,900 --> 01:47:45,333
you work on the roof of the

3232
01:47:45,333 --> 01:47:47,200
of the house the house gets fixed

3233
01:47:47,200 --> 01:47:48,600
there's really not a lot for the customer to do there

3234
01:47:48,600 --> 01:47:49,800
so to win your money back

3235
01:47:49,800 --> 01:47:51,800
not the right money model for that

3236
01:47:51,800 --> 01:47:53,900
if you have a business where someone has to take action

3237
01:47:53,900 --> 01:47:54,933
in order to see results

3238
01:47:54,933 --> 01:47:56,766
this is very common in service businesses

3239
01:47:56,800 --> 01:47:58,333
sometimes even in software businesses

3240
01:47:58,333 --> 01:47:59,266
they need to onboard themselves

3241
01:47:59,266 --> 01:48:00,500
they need to put their information

3242
01:48:00,500 --> 01:48:01,333
put their profile picture up

3243
01:48:01,333 --> 01:48:04,833
whatever it is this structure murders

3244
01:48:05,266 --> 01:48:07,966
and so the bottom line is customers put money down

3245
01:48:08,066 --> 01:48:10,500
if they do the stuff or they get the result or both

3246
01:48:10,500 --> 01:48:12,400
they get it back as cash or store credit

3247
01:48:12,400 --> 01:48:13,433
that's how this works

3248
01:48:14,800 --> 01:48:16,900
so let's give some examples here

3249
01:48:16,900 --> 01:48:18,833
so if you have a rehab facility

3250
01:48:18,900 --> 01:48:21,200
it would be like the free kick that habit

3251
01:48:21,200 --> 01:48:24,033
in 28 day blueprint or free kick that habit

3252
01:48:24,166 --> 01:48:26,866
insert word the suggestion

3253
01:48:27,566 --> 01:48:28,966
attend all your rehab sessions

3254
01:48:28,966 --> 01:48:32,100
post in the group once a week journal daily in our app

3255
01:48:32,100 --> 01:48:33,133
attend your feedback session

3256
01:48:33,133 --> 01:48:34,466
in your transformation session

3257
01:48:34,566 --> 01:48:36,966
which are both sales and up sale opportunities

3258
01:48:36,966 --> 01:48:39,666
so earlier I said you want the actions

3259
01:48:39,666 --> 01:48:41,500
they have to take to be things that get them results

3260
01:48:41,500 --> 01:48:42,866
or things that advertise your business

3261
01:48:42,866 --> 01:48:45,166
the third category is sales appointments

3262
01:48:45,400 --> 01:48:47,500
and so you want it to be mandatory

3263
01:48:47,500 --> 01:48:49,333
that they attend the upsell opportunities

3264
01:48:49,333 --> 01:48:49,866
that you have

3265
01:48:49,866 --> 01:48:52,200
so remember earlier I showed the five different places

3266
01:48:52,200 --> 01:48:52,366
then

3267
01:48:52,366 --> 01:48:55,000
you make each of those places that they must attend

3268
01:48:56,466 --> 01:48:58,500
and so the result maybe for these would be like

3269
01:48:58,500 --> 01:48:59,500
pass a urine test at the end

3270
01:48:59,500 --> 01:49:00,166
in 28 days

3271
01:49:00,166 --> 01:49:02,400
that's the result like if they're they're clean awesome

3272
01:49:02,400 --> 01:49:02,866
right

3273
01:49:02,866 --> 01:49:05,000
and so this would just be a pure results based thing

3274
01:49:05,200 --> 01:49:06,766
okay you could add in

3275
01:49:06,766 --> 01:49:09,066
these pieces to make it action and results

3276
01:49:09,200 --> 01:49:10,800
let's say in a pain relief business

3277
01:49:10,866 --> 01:49:13,366
so 28 day 1 0 1 pain relief program

3278
01:49:13,366 --> 01:49:14,166
fine

3279
01:49:14,200 --> 01:49:16,600
commitment is that you attend all your rehab sessions

3280
01:49:16,600 --> 01:49:17,866
do your at home stretches

3281
01:49:17,866 --> 01:49:19,100
post a picture in the group once a week

3282
01:49:19,100 --> 01:49:20,766
when you're done attend your feedback session

3283
01:49:20,766 --> 01:49:21,800
and transformation session

3284
01:49:21,800 --> 01:49:24,933
very similar but now it's just about them doing that

3285
01:49:24,933 --> 01:49:27,433
and not at all about having the pain relief

3286
01:49:27,566 --> 01:49:28,400
because this is one

3287
01:49:28,400 --> 01:49:29,600
that's a little bit more subjective

3288
01:49:29,600 --> 01:49:32,400
so it might be unfortunately people are uh

3289
01:49:32,766 --> 01:49:35,066
not always ethical when it comes to their own money

3290
01:49:35,066 --> 01:49:36,166
and so we say okay

3291
01:49:36,166 --> 01:49:36,866
them saying well

3292
01:49:36,866 --> 01:49:38,900
I went for it I'm still a 10 out of 10 paying

3293
01:49:38,900 --> 01:49:40,133
and please give me my money back

3294
01:49:40,133 --> 01:49:40,933
so this way

3295
01:49:40,933 --> 01:49:43,866
if you have them do all the stuff that becomes the

3296
01:49:43,866 --> 01:49:45,733
the the requirement for earning the

3297
01:49:45,733 --> 01:49:47,966
the money back example marketing

3298
01:49:47,966 --> 01:49:48,766
so let's say you uh

3299
01:49:48,766 --> 01:49:49,600
you teach people how to market

3300
01:49:49,600 --> 01:49:51,000
you say okay free five clients

3301
01:49:51,000 --> 01:49:52,666
a five day challenge uh

3302
01:49:52,666 --> 01:49:53,566
the action you have to take is

3303
01:49:53,566 --> 01:49:55,700
you have to send 100 outbound messages per day

3304
01:49:55,700 --> 01:49:57,233
attend the daily training post in the group

3305
01:49:57,466 --> 01:49:58,733
uh once you've done your homework

3306
01:49:58,733 --> 01:50:00,166
and the results is make five closes

3307
01:50:00,166 --> 01:50:01,800
and the goal is that you have to make five sales

3308
01:50:01,800 --> 01:50:02,800
and you have to send the DMS

3309
01:50:02,800 --> 01:50:05,166
and if you do both you get the thing back cash back

3310
01:50:05,166 --> 01:50:07,266
right now you're like how does the free thing work

3311
01:50:07,266 --> 01:50:09,600
I'll explain how you can do free with money down

3312
01:50:11,466 --> 01:50:14,200
important points so when your money back works with new

3313
01:50:14,200 --> 01:50:15,566
current and previous customers

3314
01:50:15,566 --> 01:50:18,133
so somebody who's new can come in and take this offer

3315
01:50:18,133 --> 01:50:19,933
you can just offer it to your existing customer base

3316
01:50:19,933 --> 01:50:22,300
cause that a lot of them get really interested in it uh

3317
01:50:22,300 --> 01:50:23,400
you can use it with past customers

3318
01:50:23,400 --> 01:50:25,700
it works for any type of customer uh

3319
01:50:25,700 --> 01:50:27,300
it works well with people that

3320
01:50:27,500 --> 01:50:28,666
that start and quit stuff

3321
01:50:28,666 --> 01:50:29,300
or services

3322
01:50:29,300 --> 01:50:30,866
where people are required to do a lot of work

3323
01:50:30,866 --> 01:50:31,600
the key is that

3324
01:50:31,600 --> 01:50:33,466
you have to have something else to offer

3325
01:50:33,466 --> 01:50:34,100
on the back end

3326
01:50:34,100 --> 01:50:36,700
that they can take that cash and credit towards alright

3327
01:50:36,700 --> 01:50:37,766
so that $500

3328
01:50:37,766 --> 01:50:39,066
or whatever amount of money you want to charge

3329
01:50:39,066 --> 01:50:40,866
for the thing you then should have something

3330
01:50:40,866 --> 01:50:42,366
that's five times more expensive

3331
01:50:42,366 --> 01:50:43,166
on the back end

3332
01:50:43,166 --> 01:50:45,700
so that they get a 20% discount on that

3333
01:50:45,700 --> 01:50:47,966
by crediting it forward now

3334
01:50:47,966 --> 01:50:50,300
if you know that you're gonna be giving a 20% discount

3335
01:50:50,300 --> 01:50:51,533
guess what you can do to your back and price

3336
01:50:51,533 --> 01:50:53,000
if everyone comes in on one your money back

3337
01:50:53,000 --> 01:50:54,500
you can raise it by 20%

3338
01:50:54,500 --> 01:50:56,200
if every person comes in on that

3339
01:50:56,200 --> 01:50:58,300
if people don't come in on that

3340
01:50:58,300 --> 01:50:59,466
then that gets more difficult

3341
01:50:59,466 --> 01:51:00,900
and so the reason that I

3342
01:51:00,900 --> 01:51:02,866
even people who came in for via referral

3343
01:51:02,866 --> 01:51:04,400
I still put on the one year money back is

3344
01:51:04,400 --> 01:51:05,966
cause I knew my pricing and everything else

3345
01:51:05,966 --> 01:51:07,800
was dictated off of this 500 dollar credit

3346
01:51:07,800 --> 01:51:09,233
I knew I was gonna give them

3347
01:51:10,500 --> 01:51:13,500
if you don't like the idea of giving cash back

3348
01:51:13,500 --> 01:51:16,066
you can also advertise it as store credit

3349
01:51:16,066 --> 01:51:18,533
so you once you get it you can credit it forward

3350
01:51:18,533 --> 01:51:19,733
and so that does create

3351
01:51:19,733 --> 01:51:21,466
I would say a longer term customer

3352
01:51:21,566 --> 01:51:24,066
um it makes the free part different

3353
01:51:24,066 --> 01:51:27,400
and let me explain the way that I made it legally free

3354
01:51:27,400 --> 01:51:28,866
at least within the laws of the United States

3355
01:51:28,866 --> 01:51:30,366
based on the counsel that I had

3356
01:51:30,366 --> 01:51:32,666
was that I had an unconditional money back guarantee

3357
01:51:33,200 --> 01:51:35,533
and so that was actually more important for me

3358
01:51:35,533 --> 01:51:37,500
advertising free than the whole getting the money back

3359
01:51:37,500 --> 01:51:38,666
all of that stuff it turns out

3360
01:51:38,666 --> 01:51:39,800
at least from the letter of the law

3361
01:51:39,800 --> 01:51:41,400
based on the people that I spoke with

3362
01:51:41,766 --> 01:51:42,900
and big big

3363
01:51:42,900 --> 01:51:45,966
big big big you really risk

3364
01:51:46,100 --> 01:51:49,466
getting in trouble when you have upset customers

3365
01:51:49,733 --> 01:51:52,166
and so why my first rule of staying out of trouble is

3366
01:51:52,166 --> 01:51:53,266
give someone their money back

3367
01:51:53,266 --> 01:51:56,766
if they ask for it it's not worth the risk

3368
01:51:56,933 --> 01:51:58,566
it's also just not worth the headache

3369
01:51:58,566 --> 01:52:00,866
just give it back go get another customer

3370
01:52:00,866 --> 01:52:02,133
that's it alright

3371
01:52:02,133 --> 01:52:04,100
so I say don't take blood money

3372
01:52:04,400 --> 01:52:05,966
give refunds if they ask for it

3373
01:52:05,966 --> 01:52:07,133
but the unconditional guarantee

3374
01:52:07,133 --> 01:52:08,666
basically gave me two different types of

3375
01:52:08,666 --> 01:52:10,500
kind of guarantees one was performance based

3376
01:52:10,500 --> 01:52:12,100
if you do the stuff I'll give you the money back

3377
01:52:12,200 --> 01:52:15,233
but I also said I have a service guarantee

3378
01:52:15,266 --> 01:52:16,866
which is that if for any reason

3379
01:52:16,866 --> 01:52:18,066
by the end of this six weeks

3380
01:52:18,066 --> 01:52:21,033
you don't believe that I gave you $500 of service

3381
01:52:21,566 --> 01:52:22,533
I'll give you the money back

3382
01:52:22,533 --> 01:52:25,533
even if you're at day 41 and 23 hours

3383
01:52:25,533 --> 01:52:26,166
and the thing is

3384
01:52:26,166 --> 01:52:27,966
is that closed a lot of people because they're like

3385
01:52:27,966 --> 01:52:28,500
okay I was like

3386
01:52:28,500 --> 01:52:28,866
listen

3387
01:52:28,866 --> 01:52:31,200
the goal like I want to get you to stay long term

3388
01:52:31,266 --> 01:52:32,533
so if you don't think that the service is worth

3389
01:52:32,533 --> 01:52:33,600
you're not gonna stay anyways

3390
01:52:33,800 --> 01:52:35,666
and so that made a lot of sense for people

3391
01:52:35,666 --> 01:52:36,566
and they're like cool

3392
01:52:36,766 --> 01:52:39,233
so from a selling perspective

3393
01:52:39,266 --> 01:52:41,766
ask them if they want short or long term goals

3394
01:52:41,933 --> 01:52:43,333
and you sell this as the kick

3395
01:52:43,333 --> 01:52:44,533
start to a long term thing

3396
01:52:44,533 --> 01:52:44,733
and so

3397
01:52:44,733 --> 01:52:47,000
you explain the benefit of giving external motivation

3398
01:52:47,000 --> 01:52:48,600
to teach internal motivation alright

3399
01:52:48,600 --> 01:52:50,966
these are all very vague and amorphous words

3400
01:52:51,066 --> 01:52:53,400
but in terms of selling very effective

3401
01:52:53,400 --> 01:52:54,766
and so I would say hey

3402
01:52:55,266 --> 01:52:56,333
when you were a kid

3403
01:52:56,333 --> 01:52:58,100
you probably had to have your mom say hey

3404
01:52:58,100 --> 01:52:59,200
you gotta go brush your teeth Timmy

3405
01:52:59,200 --> 01:53:00,000
and you be like

3406
01:53:00,400 --> 01:53:01,966
you go there and you brush your teeth right

3407
01:53:01,966 --> 01:53:03,300
and now that you're an adult

3408
01:53:03,466 --> 01:53:04,600
do you brush your teeth and they're like

3409
01:53:04,600 --> 01:53:05,333
yes it's like

3410
01:53:05,333 --> 01:53:07,433
that's an example of something external

3411
01:53:07,533 --> 01:53:09,100
being the reason for you doing an action

3412
01:53:09,100 --> 01:53:11,166
until eventually the internal engine kicks off

3413
01:53:11,166 --> 01:53:12,733
that was my analogy it's like

3414
01:53:12,733 --> 01:53:14,500
so that's exactly what we're gonna use this money for

3415
01:53:14,500 --> 01:53:16,133
in the beginning to create a new habit

3416
01:53:16,133 --> 01:53:17,133
now our thing was six weeks

3417
01:53:17,133 --> 01:53:18,600
you probably heard 21 days to make a new habit

3418
01:53:18,600 --> 01:53:19,766
we double that length

3419
01:53:19,766 --> 01:53:21,300
so that you can make this into a habit you stick with

3420
01:53:21,300 --> 01:53:22,600
we use the external to get you going

3421
01:53:22,600 --> 01:53:24,533
the internal to keep you going right

3422
01:53:24,533 --> 01:53:26,066
and so that's the toothbrush story

3423
01:53:26,266 --> 01:53:28,133
create habits that don't take effort

3424
01:53:28,133 --> 01:53:30,133
and that's what we try to build with

3425
01:53:30,133 --> 01:53:32,000
these types of money models

3426
01:53:32,200 --> 01:53:35,366
and so as an aside when crediting the people

3427
01:53:35,466 --> 01:53:36,200
uh on the back

3428
01:53:36,200 --> 01:53:38,133
rolled into service over an extended period of time

3429
01:53:38,133 --> 01:53:39,133
so this is a pro tip

3430
01:53:39,133 --> 01:53:42,500
so for example $600 I wouldn't say great

3431
01:53:42,500 --> 01:53:45,066
now you have three months free that didn't work

3432
01:53:45,066 --> 01:53:48,266
I did that for a year and it almost killed me instead

3433
01:53:48,266 --> 01:53:50,800
take the $600 and extend it over the year

3434
01:53:50,800 --> 01:53:51,666
so you say great

3435
01:53:51,666 --> 01:53:53,400
so we're gonna sign up for this year long membership

3436
01:53:53,400 --> 01:53:54,266
that's me 12 20

3437
01:53:54,266 --> 01:53:56,166
400 dollars that's $200 a month

3438
01:53:56,233 --> 01:53:58,900
take the 600 dollars off now it's 18 dollars

3439
01:53:58,900 --> 01:53:59,966
reverse it back out

3440
01:53:59,966 --> 01:54:02,200
so you're basically saving 50 dollars a month

3441
01:54:02,500 --> 01:54:04,800
by using 50 dollars for that 600 dollar credit

3442
01:54:04,800 --> 01:54:06,900
for the whole year and by doing that

3443
01:54:06,900 --> 01:54:07,566
I basically

3444
01:54:07,566 --> 01:54:11,633
I got the cash up front and then they paid me again

3445
01:54:11,933 --> 01:54:13,733
how to create your win your money back criteria

3446
01:54:13,733 --> 01:54:14,600
so this is key

3447
01:54:14,666 --> 01:54:17,166
so these criteria make or break the offer

3448
01:54:17,166 --> 01:54:19,766
and so good criteria have these characteristics

3449
01:54:19,766 --> 01:54:21,833
No. 1 is they're easy to track

3450
01:54:21,933 --> 01:54:22,333
so

3451
01:54:22,333 --> 01:54:25,466
you want to train them on exactly what they need to do

3452
01:54:25,466 --> 01:54:27,866
or they will mess up alright

3453
01:54:27,866 --> 01:54:30,133
bonus points if people already do it for example

3454
01:54:30,133 --> 01:54:31,633
phones already track steps

3455
01:54:31,733 --> 01:54:33,933
that's something that if like if you can use that

3456
01:54:33,933 --> 01:54:36,000
then that would be an easy thing that they already do

3457
01:54:36,000 --> 01:54:36,966
word processors

3458
01:54:36,966 --> 01:54:39,500
for example already track word count uh

3459
01:54:39,500 --> 01:54:41,566
cameras automatically date photos

3460
01:54:41,666 --> 01:54:43,766
so these are all things that already occur

3461
01:54:43,766 --> 01:54:45,600
and so the more magical you can make the tracking

3462
01:54:45,600 --> 01:54:46,500
the easier it is for them

3463
01:54:46,500 --> 01:54:49,500
the second thing is that you want customers to track

3464
01:54:49,566 --> 01:54:51,766
stuff that is likely to get them results

3465
01:54:51,766 --> 01:54:53,933
and realistic criteria do just that

3466
01:54:53,933 --> 01:54:57,233
so if you think the criteria look too easy

3467
01:54:57,433 --> 01:55:00,800
you've probably got close to realistic alright

3468
01:55:00,800 --> 01:55:02,700
they may take a few times to get right

3469
01:55:02,700 --> 01:55:04,933
but so does anything worth doing alright

3470
01:55:04,933 --> 01:55:08,066
so for example it could be you know attend meetings

3471
01:55:08,066 --> 01:55:09,266
workouts watch videos

3472
01:55:09,266 --> 01:55:11,300
etcetera just whatever the stuff

3473
01:55:11,300 --> 01:55:12,966
the best customers do to get the results

3474
01:55:12,966 --> 01:55:16,700
make everyone do it on purpose so this is the process

3475
01:55:16,733 --> 01:55:18,666
you do this in the beginning and have no idea

3476
01:55:18,666 --> 01:55:20,100
you then find people who get results

3477
01:55:20,100 --> 01:55:20,966
you look at what they did

3478
01:55:20,966 --> 01:55:21,500
then you say

3479
01:55:21,500 --> 01:55:23,400
everybody has to do the stuff that the best people did

3480
01:55:23,400 --> 01:55:24,300
and then you do it again

3481
01:55:24,300 --> 01:55:25,466
you look at the people who did the best

3482
01:55:25,466 --> 01:55:26,533
results of that stuff and you say great

3483
01:55:26,533 --> 01:55:27,766
everybody has to do that stuff

3484
01:55:27,766 --> 01:55:29,000
and you look for the common factors

3485
01:55:29,000 --> 01:55:30,600
of the fewest things they all did

3486
01:55:30,600 --> 01:55:32,500
not everything they all did

3487
01:55:32,666 --> 01:55:34,366
and the third is advertise the business

3488
01:55:34,366 --> 01:55:35,300
and I'll have two parts of this

3489
01:55:35,300 --> 01:55:36,666
so one is advertising publicly

3490
01:55:36,666 --> 01:55:39,133
the other is you basically selling uh

3491
01:55:39,133 --> 01:55:40,333
being able to sell them all right

3492
01:55:40,333 --> 01:55:43,200
so I like using this as criteria

3493
01:55:43,200 --> 01:55:44,733
so that means that like when you work out at my gym

3494
01:55:44,733 --> 01:55:46,133
you have to post it publicly

3495
01:55:46,133 --> 01:55:48,666
now that means that if every person's working out

3496
01:55:48,666 --> 01:55:49,800
three times a week over six weeks

3497
01:55:49,800 --> 01:55:54,000
I'm gonna get 18 free organic posts from 100 people

3498
01:55:54,000 --> 01:55:57,200
I'm gonna get 18 organic posts in a tiny market

3499
01:55:57,200 --> 01:55:59,866
all saying the same words that I told them to say

3500
01:55:59,866 --> 01:56:01,366
with a link to our thing

3501
01:56:01,900 --> 01:56:02,900
and guess what would happen

3502
01:56:02,900 --> 01:56:04,700
we got more customers and at the end

3503
01:56:04,700 --> 01:56:05,666
what would they have to do

3504
01:56:05,666 --> 01:56:07,333
post a picture of their before and after

3505
01:56:07,333 --> 01:56:08,900
and then when they post the picture before and after

3506
01:56:08,900 --> 01:56:09,666
guess what that did

3507
01:56:09,666 --> 01:56:11,700
brought more customers and guess what that also did

3508
01:56:11,700 --> 01:56:13,133
more people would comment on all their posts

3509
01:56:13,133 --> 01:56:14,500
and they had to tag me in it

3510
01:56:14,500 --> 01:56:16,500
and so I could have all of these leads across

3511
01:56:16,500 --> 01:56:17,200
all these comments

3512
01:56:17,200 --> 01:56:18,666
of all these people who liked and said

3513
01:56:18,666 --> 01:56:20,200
that's amazing what gym is that

3514
01:56:20,200 --> 01:56:21,400
whatever so they tagged me

3515
01:56:21,400 --> 01:56:22,333
they tagged my business

3516
01:56:22,333 --> 01:56:23,933
and then they had the copy that they had to follow

3517
01:56:23,933 --> 01:56:26,400
for the structure for those posts again

3518
01:56:26,400 --> 01:56:28,566
you're going to give them their money back

3519
01:56:29,133 --> 01:56:30,733
so you can have some stuff that's in it

3520
01:56:30,733 --> 01:56:31,400
for you

3521
01:56:31,400 --> 01:56:33,466
and this kind of falls into the reason why people like

3522
01:56:33,466 --> 01:56:35,766
why are you doing this if you give all the money back

3523
01:56:35,766 --> 01:56:36,900
cause again the person who's buying

3524
01:56:36,900 --> 01:56:38,200
this should believe they're gonna get the money back

3525
01:56:38,200 --> 01:56:39,266
cause they believe they're gonna follow through

3526
01:56:39,266 --> 01:56:40,300
so like what's in it for you

3527
01:56:40,300 --> 01:56:40,966
and you're like dude

3528
01:56:40,966 --> 01:56:42,466
i'mma get way more customers than you

3529
01:56:42,466 --> 01:56:42,966
two things

3530
01:56:42,966 --> 01:56:45,066
I want you to stay and I want you to bring me friends

3531
01:56:45,133 --> 01:56:45,966
and if I get your results

3532
01:56:45,966 --> 01:56:47,300
you're gonna stay and you're gonna bring me friends

3533
01:56:47,666 --> 01:56:49,500
that's how this works the fourth piece here

3534
01:56:49,500 --> 01:56:51,266
which is kind of like part 2 of the advertising

3535
01:56:51,266 --> 01:56:52,900
is that you include the sales appointments

3536
01:56:52,900 --> 01:56:54,900
cause that's gonna allow you to get referrals

3537
01:56:55,566 --> 01:56:57,733
get testimonials for the before and after pictures uh

3538
01:56:57,733 --> 01:56:59,900
and then obviously upsell your other levels of service

3539
01:57:00,300 --> 01:57:03,300
so here's how you apply the store credit

3540
01:57:03,300 --> 01:57:03,866
this is important

3541
01:57:03,866 --> 01:57:06,633
so when customers win their money back

3542
01:57:06,733 --> 01:57:08,766
offer to apply it over a longer period of time

3543
01:57:08,766 --> 01:57:10,866
or a bulk package so it doesn't like

3544
01:57:10,866 --> 01:57:12,533
you can have them prepay for a year

3545
01:57:12,533 --> 01:57:13,400
and have them take it off

3546
01:57:13,400 --> 01:57:15,666
I usually have stuff that's five times more expensive

3547
01:57:15,666 --> 01:57:17,166
as the up sell off the front end

3548
01:57:17,166 --> 01:57:19,933
that way the max I give is like 20% off alright

3549
01:57:19,933 --> 01:57:21,733
that's if I didn't change my price ideally

3550
01:57:21,733 --> 01:57:23,766
like I said earlier I bump it by 20%

3551
01:57:23,800 --> 01:57:24,900
in my experience

3552
01:57:24,900 --> 01:57:27,600
this keeps customers engaged and makes you more money

3553
01:57:27,600 --> 01:57:29,000
because if you just give it free

3554
01:57:29,000 --> 01:57:32,600
I noticed that people it's I hate the quote

3555
01:57:32,600 --> 01:57:33,933
but in this particular example

3556
01:57:33,933 --> 01:57:35,466
if people didn't pay for the membership

3557
01:57:35,466 --> 01:57:37,366
they stopped coming if they just used off credit

3558
01:57:37,366 --> 01:57:39,000
and then when their first real Bill came

3559
01:57:39,000 --> 01:57:40,000
they'd be like I'm good

3560
01:57:40,000 --> 01:57:42,366
but if they had to start paying even at a discount

3561
01:57:42,500 --> 01:57:44,966
they ended up coming they kept coming right

3562
01:57:44,966 --> 01:57:46,933
and that was the that was the thing that I found out

3563
01:57:46,933 --> 01:57:47,900
because if you have a business

3564
01:57:47,900 --> 01:57:50,000
where it takes work for someone to do it

3565
01:57:50,000 --> 01:57:50,566
then it's like

3566
01:57:50,566 --> 01:57:52,300
you want to have them have some skin in the game

3567
01:57:52,300 --> 01:57:54,400
and that was actually the term I used in the sale

3568
01:57:54,400 --> 01:57:56,066
like we need you to have some skin in the game

3569
01:57:56,066 --> 01:57:57,566
and I also told the story I just told

3570
01:57:57,600 --> 01:57:58,766
so we're like why don't you do it up front

3571
01:57:58,766 --> 01:57:59,200
I'd be like

3572
01:57:59,200 --> 01:58:00,866
because honestly when people I did it up front

3573
01:58:00,866 --> 01:58:02,400
people didn't come and you wanna

3574
01:58:02,400 --> 01:58:04,766
you want this to work I want this to work for you

3575
01:58:04,766 --> 01:58:06,333
so I'm happy to give you the discount and apply

3576
01:58:06,333 --> 01:58:08,100
so you're still gonna get this money uh

3577
01:58:08,100 --> 01:58:09,366
we're just gonna put it over a longer period of time

3578
01:58:09,366 --> 01:58:10,133
so that you stick with this

3579
01:58:10,133 --> 01:58:10,766
cause that's what you want

3580
01:58:10,766 --> 01:58:11,566
that's what you want right

3581
01:58:11,566 --> 01:58:12,366
okay cool

3582
01:58:12,566 --> 01:58:13,566
um now if someone's like

3583
01:58:13,566 --> 01:58:15,333
well I want the free time and I'm definitely gonna stay

3584
01:58:15,333 --> 01:58:16,833
that's like cool then sign up for a year

3585
01:58:17,266 --> 01:58:18,866
like if you know you're gonna stay

3586
01:58:18,866 --> 01:58:19,333
then don't worry about it

3587
01:58:19,333 --> 01:58:19,700
it's not for you

3588
01:58:19,700 --> 01:58:20,933
I'll give you the first three months for free

3589
01:58:20,933 --> 01:58:21,900
this is how it works math wise

3590
01:58:21,900 --> 01:58:22,966
so you have a product that costs

3591
01:58:22,966 --> 01:58:25,600
let's say $200 a month a customer with $600 of credit

3592
01:58:25,866 --> 01:58:27,466
avoid giving them that stuff upfront

3593
01:58:27,533 --> 01:58:29,200
instead apply the $600 over 12 months

3594
01:58:29,200 --> 01:58:31,466
so 600 / 12 is 50 bucks a month

3595
01:58:31,466 --> 01:58:34,733
they now pay 200 - 50 which is one 50 per month alright

3596
01:58:34,733 --> 01:58:35,200
so to be clear

3597
01:58:35,200 --> 01:58:37,000
they can use the credit however they want

3598
01:58:37,133 --> 01:58:38,933
it is up to them if you want to be ethical

3599
01:58:38,933 --> 01:58:40,900
and comply with advertising rules and promises

3600
01:58:40,966 --> 01:58:42,166
they can use it however they want

3601
01:58:42,166 --> 01:58:45,666
I recommend presenting this offer first right

3602
01:58:45,666 --> 01:58:46,700
that way they can use it

3603
01:58:46,700 --> 01:58:48,766
and then I share the experience I just shared right

3604
01:58:48,766 --> 01:58:49,733
and so in depth

3605
01:58:49,733 --> 01:58:51,200
details of the upsell offer

3606
01:58:51,200 --> 01:58:52,966
are actually in the rollover upsell

3607
01:58:52,966 --> 01:58:54,633
which is later in this training

3608
01:58:54,766 --> 01:58:55,800
so I'll just leave it at that

3609
01:58:55,800 --> 01:58:57,100
because this is more offer structure

3610
01:58:57,100 --> 01:58:59,566
the upsell stuff comes later alright

3611
01:58:59,566 --> 01:59:01,400
so all meetings and

3612
01:59:01,466 --> 01:59:03,266
calls provide opportunities to make more offers

3613
01:59:03,266 --> 01:59:04,733
so make every single meeting

3614
01:59:04,733 --> 01:59:05,900
that you have with a customer

3615
01:59:05,900 --> 01:59:09,500
an opportunity uh to present an offer alright

3616
01:59:09,500 --> 01:59:10,733
and so make check in meetings

3617
01:59:10,733 --> 01:59:11,766
part of your money back criteria

3618
01:59:11,766 --> 01:59:12,333
whenever you can

3619
01:59:12,333 --> 01:59:14,000
make all meetings required to win their money back

3620
01:59:14,000 --> 01:59:15,533
part of that beyond helping them succeed

3621
01:59:15,533 --> 01:59:17,800
they're also the best opportunity to make upsell offers

3622
01:59:17,800 --> 01:59:20,100
so after you've checked in

3623
01:59:20,133 --> 01:59:22,800
offer what makes sense based on their feedback

3624
01:59:22,800 --> 01:59:24,433
and so these are the three appointments I had

3625
01:59:24,466 --> 01:59:25,866
so we had nutrition orientation

3626
01:59:25,866 --> 01:59:27,466
which was our before pictures

3627
01:59:27,466 --> 01:59:28,766
and that's where I sold supplements

3628
01:59:29,100 --> 01:59:30,600
then we had our progress check in

3629
01:59:30,600 --> 01:59:33,000
which I made my membership offer like hey

3630
01:59:33,000 --> 01:59:34,700
commit to staying for the next year

3631
01:59:35,000 --> 01:59:37,466
then I had my transformation feedback

3632
01:59:37,466 --> 01:59:38,533
which is their after meeting

3633
01:59:38,533 --> 01:59:39,833
where I would get after pictures

3634
01:59:39,866 --> 01:59:41,766
and then I would make the membership offer again

3635
01:59:41,766 --> 01:59:42,966
to anybody who hadn't already bought

3636
01:59:42,966 --> 01:59:44,333
and to the people who had bought

3637
01:59:44,333 --> 01:59:45,666
I offered them to prepay it

3638
01:59:45,666 --> 01:59:46,933
here's another pro tip for you

3639
01:59:46,933 --> 01:59:48,533
make everybody a winner alright

3640
01:59:48,533 --> 01:59:49,400
so you know this

3641
01:59:49,400 --> 01:59:51,133
they don't know this and I don't sell this upfront

3642
01:59:51,133 --> 01:59:53,466
you do not mention this in the first sale

3643
01:59:54,166 --> 01:59:55,466
the reason I made everyone a winner

3644
01:59:55,466 --> 01:59:56,366
is that about halfway through

3645
01:59:56,366 --> 01:59:59,100
you make your next offer as though they already won

3646
01:59:59,366 --> 01:59:59,766
alright

3647
01:59:59,766 --> 02:00:01,933
and so you lower the customer's anxiety about failing

3648
02:00:01,933 --> 02:00:03,100
and then you'll keep them longer

3649
02:00:03,100 --> 02:00:04,666
they'll also love you more

3650
02:00:04,666 --> 02:00:05,866
and so this is what I would say

3651
02:00:05,866 --> 02:00:07,700
hey I know you're trying to hit the short term goal

3652
02:00:07,700 --> 02:00:08,933
but what's your long term goal

3653
02:00:08,933 --> 02:00:10,466
okay that's great to hear

3654
02:00:10,666 --> 02:00:12,800
uh you get that this isn't about this program

3655
02:00:12,800 --> 02:00:13,966
but about your long term results

3656
02:00:13,966 --> 02:00:16,200
so I'll tell you what to show you how much I want

3657
02:00:16,200 --> 02:00:17,000
you to hit that long term goal

3658
02:00:17,000 --> 02:00:19,133
I'll credit this program towards the other one

3659
02:00:19,133 --> 02:00:21,066
whether you hit their short term goal or not

3660
02:00:21,066 --> 02:00:22,266
how's that sound so

3661
02:00:22,266 --> 02:00:23,366
now I actually

3662
02:00:23,366 --> 02:00:24,600
get them to buy

3663
02:00:24,600 --> 02:00:26,900
by reducing their risk of losing the money

3664
02:00:26,900 --> 02:00:28,700
they agreed to risk so I say

3665
02:00:28,700 --> 02:00:30,733
you won the bet without having had having to win

3666
02:00:30,733 --> 02:00:32,600
because you get the long term goal

3667
02:00:32,600 --> 02:00:34,633
so it's actually a risk reduction sale

3668
02:00:34,800 --> 02:00:37,766
if position properly and so at the end of the program

3669
02:00:37,766 --> 02:00:40,566
let the losers win so if someone refuses the upsell

3670
02:00:40,566 --> 02:00:41,933
and then still fails the challenge

3671
02:00:41,933 --> 02:00:43,700
you can still upsell them again

3672
02:00:43,700 --> 02:00:46,066
and the way you do that is by acting like they won

3673
02:00:46,066 --> 02:00:47,566
so I would say something like this

3674
02:00:47,566 --> 02:00:48,800
I'd say don't worry about it

3675
02:00:48,800 --> 02:00:51,066
you started that's the biggest victory of all

3676
02:00:51,066 --> 02:00:53,100
and even though you didn't hit your short term goal

3677
02:00:53,100 --> 02:00:55,066
you met ours so here's the key

3678
02:00:55,066 --> 02:00:56,500
even though you didn't hit your goal

3679
02:00:56,500 --> 02:00:57,933
you met my goal right

3680
02:00:57,933 --> 02:01:00,066
which was finishing what you started alright

3681
02:01:00,066 --> 02:01:01,900
so to show you that we're in this for the long haul

3682
02:01:01,900 --> 02:01:03,300
I'll credit your entire deposit

3683
02:01:03,300 --> 02:01:04,666
towards staying with us long term

3684
02:01:04,666 --> 02:01:05,933
that you still get your money back

3685
02:01:05,933 --> 02:01:08,000
you still hit your goal how does that sound

3686
02:01:08,000 --> 02:01:09,533
and so now they're like wow

3687
02:01:09,533 --> 02:01:11,600
these guys are great and so no

3688
02:01:11,600 --> 02:01:13,066
the point was not to get people to fail

3689
02:01:13,066 --> 02:01:16,266
the point is get people to succeed get them to finish

3690
02:01:16,266 --> 02:01:16,966
get some momentum

3691
02:01:16,966 --> 02:01:18,866
and then credit towards a longer term relationship

3692
02:01:18,866 --> 02:01:20,566
so those are the important points

3693
02:01:20,733 --> 02:01:21,333
does that feel like that

3694
02:01:21,333 --> 02:01:23,100
has a little bit more context on how to make this work

3695
02:01:23,100 --> 02:01:24,100
yes alright

3696
02:01:24,100 --> 02:01:26,466
so quick summary when your money back offer rocks

3697
02:01:26,466 --> 02:01:27,866
because you get loads of over cash

3698
02:01:27,866 --> 02:01:30,600
you get more customers to say yes than you would before

3699
02:01:30,600 --> 02:01:33,600
you get a massive amounts of results for customers

3700
02:01:33,600 --> 02:01:34,733
you get more long term customers

3701
02:01:34,733 --> 02:01:36,600
they advertise your offer for you

3702
02:01:36,600 --> 02:01:38,066
that gets you even more customers

3703
02:01:38,166 --> 02:01:39,366
and make the meetings

3704
02:01:39,366 --> 02:01:40,900
a part of getting the deposit back

3705
02:01:41,000 --> 02:01:42,966
and get great results for them

3706
02:01:42,966 --> 02:01:43,933
and everyone thinks

3707
02:01:43,933 --> 02:01:45,366
this business makes money based on the people who fail

3708
02:01:45,366 --> 02:01:46,300
the program no

3709
02:01:46,300 --> 02:01:48,300
the real money is from the people who succeed with it

3710
02:01:48,300 --> 02:01:50,800
and you have something else to offer them

3711
02:01:51,200 --> 02:01:53,666
so trust me on this one the more results you deliver

3712
02:01:53,666 --> 02:01:54,666
the more money you will make

3713
02:01:54,666 --> 02:01:55,333
think along

3714
02:01:55,333 --> 02:01:57,200
and so make the refund criteria easy to track

3715
02:01:57,200 --> 02:01:59,166
align with customer goals and helpful for the business

3716
02:01:59,366 --> 02:02:00,800
only use a win your money back offer

3717
02:02:00,800 --> 02:02:02,766
if your refund rate is less than 5%

3718
02:02:02,766 --> 02:02:03,466
otherwise

3719
02:02:03,466 --> 02:02:05,166
you need to fix your product before doing this

3720
02:02:05,166 --> 02:02:06,400
cause you will risk getting too many refunds

3721
02:02:06,400 --> 02:02:08,000
I also added my unconditional guarantee

3722
02:02:08,000 --> 02:02:09,266
to make sure that I was super compliant

3723
02:02:09,266 --> 02:02:10,266
if anyone ever wanted the money back

3724
02:02:10,266 --> 02:02:11,166
I just gave it back to him

3725
02:02:11,200 --> 02:02:12,866
by the way by me offering the unconditional

3726
02:02:12,866 --> 02:02:14,033
just to give you some context

3727
02:02:14,266 --> 02:02:17,000
over 4000  sales in five years

3728
02:02:17,000 --> 02:02:21,333
I gave two back four unconditional people winning

3729
02:02:21,333 --> 02:02:22,600
and then wanted to take the winning and leave

3730
02:02:22,600 --> 02:02:24,466
or whatever like things like that sure

3731
02:02:24,466 --> 02:02:27,166
but people who said I didn't think I got the service

3732
02:02:27,166 --> 02:02:28,900
there was two and I shouldn't have sold those people

3733
02:02:28,900 --> 02:02:31,200
I like arm wrestle them to get them to buy

3734
02:02:31,333 --> 02:02:32,600
put the store credit towards another

3735
02:02:32,600 --> 02:02:34,166
preferably more expensive offer

3736
02:02:34,466 --> 02:02:35,566
that you want them to stay as customers

3737
02:02:35,566 --> 02:02:36,600
so give them the opportunity to

3738
02:02:36,600 --> 02:02:38,000
you never want people to stop paying you

3739
02:02:38,000 --> 02:02:39,566
that's the key point of this whole offer

3740
02:02:39,666 --> 02:02:41,533
and to make more sales and keep more customers

3741
02:02:41,533 --> 02:02:43,766
make everybody a winner that way

3742
02:02:43,766 --> 02:02:46,200
everyone stays surprised and grateful

3743
02:02:46,200 --> 02:02:47,500
when you make your upsell offer

3744
02:02:47,500 --> 02:02:49,566
so now my upsell offer is this amazing thing

3745
02:02:49,566 --> 02:02:51,866
that they're grateful for me making the offer

3746
02:02:51,866 --> 02:02:53,700
rather than this other opportunity to sell them

3747
02:02:54,566 --> 02:02:56,933
that is the win your money back money model

3748
02:02:58,866 --> 02:03:02,366
so our next attraction offer is free giveaways

3749
02:03:02,666 --> 02:03:04,666
so I'm gonna go over how I Learned it description

3750
02:03:04,666 --> 02:03:06,166
examples important points and summary

3751
02:03:06,166 --> 02:03:08,166
so let's dive in so how I Learned this

3752
02:03:08,300 --> 02:03:10,866
so I uh I was talking to um

3753
02:03:10,866 --> 02:03:13,566
a business owner and he was telling me about this

3754
02:03:13,566 --> 02:03:13,933
you know

3755
02:03:13,933 --> 02:03:15,766
crazy play that he had that was working really

3756
02:03:15,766 --> 02:03:17,066
really well and I was like okay

3757
02:03:17,066 --> 02:03:18,466
well how how does it work

3758
02:03:18,566 --> 02:03:18,900
he said

3759
02:03:18,900 --> 02:03:22,266
so basically I give away a scholarship for my year

3760
02:03:22,266 --> 02:03:24,466
long flagship thing um

3761
02:03:24,533 --> 02:03:26,733
if people kind of opt in and they have to

3762
02:03:26,733 --> 02:03:28,333
you know answer a couple questions about their business

3763
02:03:28,333 --> 02:03:29,700
why I should pick them etcetera

3764
02:03:29,766 --> 02:03:30,933
he said so then I do

3765
02:03:30,933 --> 02:03:31,700
you know a countdown

3766
02:03:31,700 --> 02:03:32,966
and then I do a drawing

3767
02:03:33,366 --> 02:03:34,900
and I do a live webinar where I

3768
02:03:34,900 --> 02:03:36,100
you know release it live

3769
02:03:36,100 --> 02:03:37,666
sell people on how great it is

3770
02:03:38,000 --> 02:03:39,866
and so after he he

3771
02:03:39,866 --> 02:03:40,700
he told me he's like OK

3772
02:03:40,700 --> 02:03:42,533
so I pick the person and I was like yeah

3773
02:03:42,533 --> 02:03:44,500
but OK so you just give something away for free

3774
02:03:44,500 --> 02:03:46,200
like how does that how does that actually

3775
02:03:46,200 --> 02:03:48,133
you know make you any money in the business

3776
02:03:48,133 --> 02:03:48,933
he said well

3777
02:03:48,933 --> 02:03:51,400
the key is the uh

3778
02:03:51,400 --> 02:03:53,666
participation trophy or said differently

3779
02:03:53,666 --> 02:03:56,000
the partial scholarship and so he's like

3780
02:03:56,000 --> 02:03:56,866
so what I do is

3781
02:03:56,866 --> 02:03:59,433
I reach out to all the people who opted in

3782
02:03:59,600 --> 02:04:01,533
uh and filled out all these questions

3783
02:04:01,533 --> 02:04:02,766
about why they should be eligible

3784
02:04:02,766 --> 02:04:04,166
their pain points their aspirations

3785
02:04:04,166 --> 02:04:05,366
their dreams why they should be qualified

3786
02:04:05,366 --> 02:04:06,400
why this is important to them

3787
02:04:06,400 --> 02:04:06,800
he's like

3788
02:04:06,800 --> 02:04:10,066
and then I just do a second countdown for people who

3789
02:04:10,066 --> 02:04:12,166
have partial scholarships

3790
02:04:12,466 --> 02:04:14,266
for them to basically redeem those

3791
02:04:14,266 --> 02:04:17,366
and that partial scholarship is a discount off of the

3792
02:04:17,566 --> 02:04:21,900
value that I advertise and for my grand prize

3793
02:04:21,900 --> 02:04:23,433
right of the full scholarship

3794
02:04:23,566 --> 02:04:25,566
and so that structure I was like

3795
02:04:25,566 --> 02:04:26,866
oh he said

3796
02:04:26,866 --> 02:04:27,666
here's the great part

3797
02:04:27,666 --> 02:04:30,366
I use the same structure that I give to the online

3798
02:04:30,366 --> 02:04:31,266
fitness trainers

3799
02:04:31,300 --> 02:04:33,200
so that they do the same thing when they get customers

3800
02:04:33,200 --> 02:04:33,900
so they just say hey

3801
02:04:33,900 --> 02:04:36,933
I'm doing a one year transformation or whatever it is

3802
02:04:36,933 --> 02:04:38,933
and then they have a bunch of people opt in for it

3803
02:04:38,933 --> 02:04:42,500
and they do partial scholarships for everybody else

3804
02:04:42,533 --> 02:04:42,966
and so

3805
02:04:42,966 --> 02:04:45,800
this clearly became this repeatable framework of

3806
02:04:45,866 --> 02:04:46,866
grand prize

3807
02:04:47,500 --> 02:04:48,600
participation trophy

3808
02:04:48,600 --> 02:04:50,800
or grand prize promotional offer

3809
02:04:50,800 --> 02:04:52,633
so you promote the main thing

3810
02:04:52,666 --> 02:04:53,333
and then you give

3811
02:04:53,333 --> 02:04:55,366
some sort of discount off the main thing

3812
02:04:55,366 --> 02:04:57,400
for people who ask for

3813
02:04:57,400 --> 02:05:00,266
or are qualified for that main offer

3814
02:05:00,266 --> 02:05:01,100
and so this gives you an

3815
02:05:01,100 --> 02:05:02,466
amazing way to generate tons of leads

3816
02:05:02,466 --> 02:05:03,500
it gives you a very

3817
02:05:03,500 --> 02:05:06,266
cool way to ethically sell how amazing something is

3818
02:05:06,266 --> 02:05:08,700
like if I if I get up on stage and say hey

3819
02:05:08,700 --> 02:05:09,566
I've got this amazing thing

3820
02:05:09,566 --> 02:05:10,900
I talk about how great it is

3821
02:05:10,966 --> 02:05:11,900
that's one thing now

3822
02:05:11,900 --> 02:05:13,400
if everybody in the audience knows that

3823
02:05:13,400 --> 02:05:15,300
they're waiting for me to pick one of them

3824
02:05:15,300 --> 02:05:17,800
to win this thing they are way more engaged

3825
02:05:17,800 --> 02:05:18,666
they're way more leaning in

3826
02:05:18,666 --> 02:05:21,666
because they're imagining them actually winning it

3827
02:05:21,666 --> 02:05:23,533
so you have kind of a different level of receptivity

3828
02:05:23,533 --> 02:05:25,700
which is what I think makes this so powerful

3829
02:05:26,300 --> 02:05:27,866
and you also get a ton of goodwill

3830
02:05:27,866 --> 02:05:29,166
cause you're like giving stuff away right

3831
02:05:29,166 --> 02:05:30,666
so it's just it's an awesome

3832
02:05:30,666 --> 02:05:32,433
awesome play now to be clear though

3833
02:05:32,600 --> 02:05:33,866
this is

3834
02:05:34,000 --> 02:05:36,766
this is something that is so powerful that it is uh

3835
02:05:36,766 --> 02:05:38,633
legally um

3836
02:05:38,766 --> 02:05:39,966
regulated all right

3837
02:05:39,966 --> 02:05:42,400
because if you do one of these and you charge for it

3838
02:05:42,400 --> 02:05:44,400
it's called an illegal lottery all right

3839
02:05:44,400 --> 02:05:45,266
and so like

3840
02:05:45,266 --> 02:05:46,066
these things

3841
02:05:46,066 --> 02:05:48,700
work well enough that the laws had to get made to uh

3842
02:05:48,700 --> 02:05:51,500
to show uh how not to do them wrong way okay

3843
02:05:51,500 --> 02:05:53,100
so how how does this work overall

3844
02:05:53,100 --> 02:05:53,733
so I'll just read this to you

3845
02:05:53,733 --> 02:05:54,700
so giveaway offers

3846
02:05:54,700 --> 02:05:55,966
advertise a chance to win a big prize

3847
02:05:55,966 --> 02:05:57,400
in exchange for contact information

3848
02:05:57,400 --> 02:06:00,066
whatever else you want and then after picking a winner

3849
02:06:00,066 --> 02:06:03,166
you offer everyone else a big prize and a discount um

3850
02:06:03,166 --> 02:06:05,966
giveaways also go by names like sweepstakes

3851
02:06:05,966 --> 02:06:07,133
he had scholarship

3852
02:06:07,133 --> 02:06:08,466
like all of these are different terms

3853
02:06:08,466 --> 02:06:10,700
they all mean enter for a chance to win alright

3854
02:06:10,700 --> 02:06:12,966
and so giveaway offers um

3855
02:06:12,966 --> 02:06:15,933
to run them 1 you just have to pick a grand prize

3856
02:06:15,933 --> 02:06:17,500
and a promotional offer right

3857
02:06:17,500 --> 02:06:19,666
so think your main thing and then your your uh

3858
02:06:19,666 --> 02:06:20,766
your participation trophy

3859
02:06:20,766 --> 02:06:23,166
whatever uh ask for contact information

3860
02:06:23,166 --> 02:06:24,100
now the promotional offer

3861
02:06:24,100 --> 02:06:25,400
doesn't actually have to be different than the grand

3862
02:06:25,400 --> 02:06:28,066
prize it can usually be a discount on the main prize

3863
02:06:28,066 --> 02:06:28,966
to be clear

3864
02:06:29,533 --> 02:06:32,733
or just a truncated version or decreased time

3865
02:06:32,733 --> 02:06:34,133
it can be whatever spin you want

3866
02:06:34,133 --> 02:06:35,800
but typically it's gonna be some reason

3867
02:06:35,800 --> 02:06:39,200
for it to be a little bit less than the grand prize

3868
02:06:39,200 --> 02:06:40,500
and then a reason for them to buy

3869
02:06:40,500 --> 02:06:41,466
now right

3870
02:06:41,866 --> 02:06:44,066
we ask for information and eligibility criteria

3871
02:06:44,066 --> 02:06:47,033
like you don't want veterinarians opting in for a

3872
02:06:47,133 --> 02:06:48,400
you know um

3873
02:06:49,400 --> 02:06:51,033
a retailer's uh

3874
02:06:51,133 --> 02:06:54,866
conference in Nebraska if you've got people who are uh

3875
02:06:55,100 --> 02:06:56,933
whatever veterinarians in Georgia

3876
02:06:56,933 --> 02:06:57,900
like it doesn't make sense right

3877
02:06:57,900 --> 02:06:59,333
so you wanna make sure that they're eligible

3878
02:06:59,333 --> 02:07:00,300
for your core services

3879
02:07:00,300 --> 02:07:02,366
otherwise why would you wanna give something away

3880
02:07:02,366 --> 02:07:03,700
to somebody who could never buy your thing anyways

3881
02:07:03,700 --> 02:07:04,266
right so

3882
02:07:04,266 --> 02:07:05,800
you can still create eligibility criteria

3883
02:07:05,800 --> 02:07:06,800
in order to get the giveaway

3884
02:07:06,800 --> 02:07:08,766
including questions or actions or anything

3885
02:07:08,766 --> 02:07:10,400
you want them to add somebody to a group

3886
02:07:10,400 --> 02:07:11,200
or post something like

3887
02:07:11,200 --> 02:07:12,966
you can put as many criteria as you want

3888
02:07:12,966 --> 02:07:13,966
or actions for them to take

3889
02:07:13,966 --> 02:07:15,300
in order for them to be qualified

3890
02:07:15,300 --> 02:07:16,966
so then you put the giveaway on a deadline

3891
02:07:16,966 --> 02:07:17,866
this is super important

3892
02:07:17,866 --> 02:07:18,900
because if you don't have a deadline

3893
02:07:18,900 --> 02:07:20,733
then like once I mean all marketing right

3894
02:07:20,733 --> 02:07:21,866
you want to have some sort of urgency

3895
02:07:21,866 --> 02:07:23,233
that drives people to take action

3896
02:07:23,266 --> 02:07:24,066
and then also

3897
02:07:24,066 --> 02:07:26,766
this is important when you have the giveaway and you

3898
02:07:26,766 --> 02:07:27,766
and you try to

3899
02:07:27,766 --> 02:07:29,833
contact everyone else for the participation prizes

3900
02:07:30,000 --> 02:07:34,266
you want to make sure that those participation prizes

3901
02:07:34,266 --> 02:07:36,566
and them claiming those prizes are also on deadlines

3902
02:07:36,566 --> 02:07:37,566
cause otherwise you'll just say like

3903
02:07:37,566 --> 02:07:39,400
hey you won and then no one will

3904
02:07:39,466 --> 02:07:40,733
no one will do anything right

3905
02:07:40,733 --> 02:07:43,166
and so you have to have urgency at each step

3906
02:07:43,400 --> 02:07:44,333
uh to drive action

3907
02:07:44,333 --> 02:07:46,000
which is just normal marketing stuff

3908
02:07:46,000 --> 02:07:47,566
but sometimes you forget alright

3909
02:07:47,566 --> 02:07:48,800
now beyond that um

3910
02:07:48,800 --> 02:07:51,100
you wanna announce the grand prize winner obviously

3911
02:07:51,100 --> 02:07:53,966
and you also wanna give them the prize obviously duh

3912
02:07:53,966 --> 02:07:55,000
sometimes I have to say this

3913
02:07:55,000 --> 02:07:57,000
like if you're going to advertise a grand prize

3914
02:07:57,000 --> 02:07:59,200
you have to give the grand prize away um

3915
02:07:59,200 --> 02:08:00,933
and then you contact everybody else

3916
02:08:00,933 --> 02:08:02,400
and tell them about the promotional offer

3917
02:08:02,400 --> 02:08:03,766
that they are eligible for

3918
02:08:03,766 --> 02:08:05,000
which is like congratulations

3919
02:08:05,400 --> 02:08:07,866
we thought your information was so compelling

3920
02:08:07,866 --> 02:08:09,466
we want to offer you a partial scholarship

3921
02:08:09,466 --> 02:08:10,966
we thought your information was so compelling

3922
02:08:10,966 --> 02:08:13,000
we thought we would offer this promotional offer

3923
02:08:13,000 --> 02:08:15,700
that's the grand prize thing that you said you wanted

3924
02:08:15,700 --> 02:08:17,266
it's like that but better or like that

3925
02:08:17,266 --> 02:08:18,666
but shorter or like that but cheaper

3926
02:08:18,666 --> 02:08:19,600
whatever right

3927
02:08:19,600 --> 02:08:21,700
you just you say you told us all this stuff

3928
02:08:21,700 --> 02:08:23,500
we think you're a good fit and as a result

3929
02:08:23,500 --> 02:08:24,633
we want to give you this offer

3930
02:08:24,733 --> 02:08:25,666
uh make your grand prize

3931
02:08:25,666 --> 02:08:27,533
the thing you want everyone to buy alright

3932
02:08:27,533 --> 02:08:29,700
so make sure you assign a monetary value to your grand

3933
02:08:29,700 --> 02:08:30,200
prize

3934
02:08:30,200 --> 02:08:32,666
to serve as a price anchor for your promotional offer

3935
02:08:32,666 --> 02:08:34,300
so for instance if you sell a 5

3936
02:08:34,300 --> 02:08:34,400
you know

3937
02:08:34,400 --> 02:08:36,700
5 thousand dollars worth of value thing for $2,000

3938
02:08:36,700 --> 02:08:38,500
then advertise the 5,000 dollar value right

3939
02:08:38,500 --> 02:08:39,366
let's say that's the giveaway

3940
02:08:39,366 --> 02:08:41,200
next you pick your promotional offer alright

3941
02:08:41,200 --> 02:08:43,600
so this is a discount on the grand prize

3942
02:08:43,600 --> 02:08:46,433
a truncated version some very small difference

3943
02:08:46,500 --> 02:08:48,966
that allows you to charge even less

3944
02:08:48,966 --> 02:08:51,766
for your grand prize to people who

3945
02:08:51,766 --> 02:08:54,000
kind of win the participation trophy alright

3946
02:08:54,000 --> 02:08:55,166
and the bigger the discount

3947
02:08:55,166 --> 02:08:58,000
the more compelling the offer obviously and so hint

3948
02:08:58,000 --> 02:09:00,900
the bigger the value you make this thing um

3949
02:09:00,933 --> 02:09:02,200
the better right so remember

3950
02:09:02,200 --> 02:09:02,566
leads

3951
02:09:02,566 --> 02:09:04,900
enter the giveaway because they found the grand prize

3952
02:09:04,900 --> 02:09:05,166
interesting

3953
02:09:05,166 --> 02:09:07,700
this is why this is such a key point is that like

3954
02:09:07,900 --> 02:09:10,000
everybody already says they want this thing

3955
02:09:10,000 --> 02:09:11,133
so you don't have to really like

3956
02:09:11,133 --> 02:09:12,700
sell them on wanting it they already want it

3957
02:09:12,700 --> 02:09:13,666
we just need to make an offer

3958
02:09:13,666 --> 02:09:16,200
good enough for them to say yes right

3959
02:09:16,200 --> 02:09:17,700
and so the promotional offer gets you customers

3960
02:09:17,700 --> 02:09:19,800
because you offer what they already showed interest in

3961
02:09:20,566 --> 02:09:21,533
uh at a discount

3962
02:09:21,533 --> 02:09:22,733
and the discount

3963
02:09:22,733 --> 02:09:25,533
in the story I gave was the partial scholarship alright

3964
02:09:25,533 --> 02:09:26,766
and so you can call your promotional offer

3965
02:09:26,766 --> 02:09:28,700
whatever you want free business scholarship

3966
02:09:28,700 --> 02:09:29,833
gift card voucher

3967
02:09:29,966 --> 02:09:33,600
dollars off store credit whatever right

3968
02:09:33,600 --> 02:09:34,166
the point is

3969
02:09:34,166 --> 02:09:36,000
is that you have a main thing and you got a

3970
02:09:36,000 --> 02:09:37,700
you got a gift card that somebody can win

3971
02:09:37,700 --> 02:09:39,500
that can apply towards it bingo

3972
02:09:39,500 --> 02:09:41,166
bingo so what else does someone need

3973
02:09:41,166 --> 02:09:42,566
in order to qualify or opt in

3974
02:09:42,566 --> 02:09:43,900
you obviously need their contact information

3975
02:09:43,900 --> 02:09:46,133
otherwise you can't contact them

3976
02:09:46,133 --> 02:09:47,633
you want them to be eligible

3977
02:09:47,700 --> 02:09:48,800
because if they're not eligible

3978
02:09:48,800 --> 02:09:50,000
they're not gonna be able to buy anyways

3979
02:09:50,000 --> 02:09:51,100
or they're not a good fit

3980
02:09:51,266 --> 02:09:52,900
and then I prefer to also

3981
02:09:52,900 --> 02:09:54,666
so this is kind of like how do I talk to you

3982
02:09:54,666 --> 02:09:56,266
who are you and then

3983
02:09:56,266 --> 02:09:58,000
what actions have you taken

3984
02:09:58,133 --> 02:09:59,900
that make you more likely

3985
02:09:59,900 --> 02:10:01,866
to be either a great customer

3986
02:10:01,866 --> 02:10:04,400
or more likely to bring more other customers

3987
02:10:04,400 --> 02:10:06,200
which is gonna be a promotional activity alright

3988
02:10:06,200 --> 02:10:08,866
and so other stuff interests you to qualify um

3989
02:10:08,866 --> 02:10:10,800
I add these to promote my giveaway more

3990
02:10:10,800 --> 02:10:11,333
so might be like

3991
02:10:11,333 --> 02:10:13,900
you have to bring a friend to my giveaway

3992
02:10:13,900 --> 02:10:15,300
in order to qualify to win

3993
02:10:15,300 --> 02:10:16,533
that could be a qualification

3994
02:10:16,533 --> 02:10:17,800
it could be you have to join my group

3995
02:10:17,800 --> 02:10:19,100
it could be you have to share this post

3996
02:10:19,100 --> 02:10:21,100
it could be it could be you have to leave a review

3997
02:10:21,100 --> 02:10:22,500
like there's 100 things you could have people

3998
02:10:22,500 --> 02:10:24,166
you could have them do them all right

3999
02:10:24,166 --> 02:10:26,666
now the more friction you add uh

4000
02:10:26,666 --> 02:10:26,900
the

4001
02:10:26,900 --> 02:10:28,700
the fewer people are gonna want to enter the giveaway

4002
02:10:28,700 --> 02:10:29,533
so it's a little bit of a

4003
02:10:29,533 --> 02:10:31,266
a balance between those two things

4004
02:10:31,266 --> 02:10:32,766
but I'll say this in general for me

4005
02:10:32,766 --> 02:10:34,833
if you have a compelling enough grand prize

4006
02:10:34,966 --> 02:10:36,366
people will take a minute

4007
02:10:36,366 --> 02:10:38,366
to follow some of those steps to become more qualified

4008
02:10:38,366 --> 02:10:39,300
leads for you so yeah

4009
02:10:39,300 --> 02:10:40,966
other examples could be you know

4010
02:10:40,966 --> 02:10:42,100
attending a call or event

4011
02:10:42,133 --> 02:10:44,100
making a post entering a group right

4012
02:10:44,100 --> 02:10:44,966
and the key here is that

4013
02:10:44,966 --> 02:10:46,733
we want them to either promote our stuff more

4014
02:10:46,733 --> 02:10:48,533
or demonstrate higher quality of interest

4015
02:10:48,533 --> 02:10:49,333
which said differently

4016
02:10:49,333 --> 02:10:51,900
is we want them to consume more of our information

4017
02:10:51,900 --> 02:10:52,900
so that they're more likely to make

4018
02:10:52,900 --> 02:10:53,966
a purchasing decision

4019
02:10:54,033 --> 02:10:56,000
when presented our promotional offer

4020
02:10:56,000 --> 02:10:58,133
if they don't win the main prize

4021
02:10:58,133 --> 02:10:59,800
once we have all this in place

4022
02:10:59,800 --> 02:11:01,533
we put the giveaway on a deadline

4023
02:11:01,533 --> 02:11:02,733
to give away the free thing

4024
02:11:02,733 --> 02:11:05,333
so you make a lot of razzle dazzle hey 5

4025
02:11:05,333 --> 02:11:07,166
4 6 3 2 1 this how many days left

4026
02:11:07,166 --> 02:11:09,100
it's me excited everyone hop on right

4027
02:11:09,100 --> 02:11:09,800
we make it urgent

4028
02:11:09,800 --> 02:11:12,533
by making it only available for a limited time um

4029
02:11:12,533 --> 02:11:13,900
3 to 7 days I think works best

4030
02:11:13,900 --> 02:11:15,300
I think people's uh

4031
02:11:15,666 --> 02:11:17,066
attention spans are relatively limited

4032
02:11:17,066 --> 02:11:18,966
so I think you know a weekish works well

4033
02:11:19,000 --> 02:11:20,966
um as soon as leads enter the giveaway

4034
02:11:20,966 --> 02:11:22,200
you want to update them daily

4035
02:11:22,200 --> 02:11:24,000
so first you let them know how long they have

4036
02:11:24,000 --> 02:11:25,600
until you announce the winner um

4037
02:11:25,600 --> 02:11:26,500
you can do this email

4038
02:11:26,500 --> 02:11:28,533
direct message text social media post and so on

4039
02:11:28,533 --> 02:11:29,566
if you already have a community

4040
02:11:29,566 --> 02:11:31,666
you can do it there publicly and then also uh

4041
02:11:31,666 --> 02:11:34,466
one on one at scale like via broadcast um

4042
02:11:34,466 --> 02:11:35,700
and do as many as reasonable

4043
02:11:35,700 --> 02:11:37,066
once a day across all platforms

4044
02:11:37,100 --> 02:11:39,600
tends to work pretty OK um second cause again

4045
02:11:39,600 --> 02:11:41,366
you can do it you can get away with once a day

4046
02:11:41,366 --> 02:11:43,300
if it's a shorter thing if you're gonna go longer

4047
02:11:43,300 --> 02:11:44,200
I probably wouldn't do every day

4048
02:11:44,200 --> 02:11:45,666
if you're to 30 day giveaway

4049
02:11:45,700 --> 02:11:46,700
which you can do

4050
02:11:46,700 --> 02:11:49,100
there's there's situations where that works like

4051
02:11:49,100 --> 02:11:50,566
you know if you're at 27 days out

4052
02:11:50,566 --> 02:11:51,400
you're like I get it

4053
02:11:51,400 --> 02:11:53,900
you might opt out of the giveaway by the end of it

4054
02:11:53,900 --> 02:11:56,066
so you might do like I would follow the Whisper

4055
02:11:56,066 --> 02:11:59,266
t shout framework that I have in the leads book

4056
02:11:59,366 --> 02:12:01,766
um in terms of it's kind of like a reverse launch

4057
02:12:01,766 --> 02:12:04,366
but you're kind of launching a giveaway right now

4058
02:12:04,366 --> 02:12:07,066
second you provide value along with your countdown

4059
02:12:07,066 --> 02:12:08,933
so this is a point that I think a lot of people miss is

4060
02:12:08,933 --> 02:12:10,400
you don't wanna just say the countdown

4061
02:12:10,400 --> 02:12:11,400
you also wanna be like

4062
02:12:11,400 --> 02:12:13,266
let me sell you on how this thing's amazing

4063
02:12:13,266 --> 02:12:14,366
and how it's gonna change your life

4064
02:12:14,366 --> 02:12:16,100
which people are gonna be excited about

4065
02:12:16,100 --> 02:12:16,266
like

4066
02:12:16,266 --> 02:12:17,900
let's say you give away vacation for whatever reason

4067
02:12:17,900 --> 02:12:19,333
now we wouldn't give away vacation

4068
02:12:19,333 --> 02:12:20,366
unless you're in the vacation business

4069
02:12:20,366 --> 02:12:21,266
I prefer you give away

4070
02:12:21,266 --> 02:12:23,700
if you're gonna use this play the main thing you sell

4071
02:12:23,700 --> 02:12:25,333
but I'll just use vacation as simple

4072
02:12:25,333 --> 02:12:27,333
a simple example if I gave away vacation

4073
02:12:27,333 --> 02:12:29,100
cause I'm a travel agent right

4074
02:12:29,100 --> 02:12:32,533
that vacation then what else am I gonna talk about

4075
02:12:32,533 --> 02:12:34,066
I wanna talk about the drinks they're gonna have

4076
02:12:34,066 --> 02:12:35,133
I wanna talk about the restaurants there

4077
02:12:35,133 --> 02:12:36,166
I wanna talk about the weather there

4078
02:12:36,166 --> 02:12:36,933
I wanna talk about the beach

4079
02:12:36,933 --> 02:12:37,566
I wanna talk about the views

4080
02:12:37,566 --> 02:12:38,766
I wanna talk about their hotel room

4081
02:12:38,766 --> 02:12:40,366
I wanna talk about all these things that I can use

4082
02:12:40,366 --> 02:12:43,066
each day of my countdown to provide value

4083
02:12:43,066 --> 02:12:45,000
describing the grand prize

4084
02:12:45,100 --> 02:12:46,266
and so it doesn't seem like a

4085
02:12:46,266 --> 02:12:48,100
take when I'm reminding them of this thing

4086
02:12:48,100 --> 02:12:49,066
that they want to win

4087
02:12:49,066 --> 02:12:51,066
and I'm talking about how great it is right

4088
02:12:51,066 --> 02:12:52,366
that's the key that I think people miss

4089
02:12:52,366 --> 02:12:53,700
rather than just like it's coming

4090
02:12:53,700 --> 02:12:55,366
it's coming like that gets tiring right

4091
02:12:55,366 --> 02:12:57,266
so just provide value along the way

4092
02:12:58,966 --> 02:13:00,966
beyond that show everyone the benefits right

4093
02:13:00,966 --> 02:13:01,866
we just said that

4094
02:13:02,133 --> 02:13:03,966
and you want to refer everyone to social proof

4095
02:13:03,966 --> 02:13:06,000
so this is both the benefits and proof that it's good

4096
02:13:06,000 --> 02:13:08,000
so if you do have that vacation

4097
02:13:08,000 --> 02:13:10,200
I'm saying if you've sent other people on this

4098
02:13:10,200 --> 02:13:11,666
grand prize vacation before

4099
02:13:11,666 --> 02:13:12,333
then it's like hey

4100
02:13:12,333 --> 02:13:14,500
here's John and Sally who went on the thing to Egypt

4101
02:13:14,500 --> 02:13:16,400
and they loved it and then the next day

4102
02:13:16,466 --> 02:13:18,166
here's the rooms and then here's

4103
02:13:18,166 --> 02:13:20,666
you know Kevin and Kelly who are saying how the

4104
02:13:20,666 --> 02:13:22,200
the rooms were spectacular

4105
02:13:22,200 --> 02:13:23,566
and how is the best hotel room

4106
02:13:23,566 --> 02:13:24,400
they've ever stayed in their whole life

4107
02:13:24,400 --> 02:13:25,700
and they wish they could live there right

4108
02:13:25,700 --> 02:13:26,366
each one of these

4109
02:13:26,366 --> 02:13:27,966
you want to pair the benefit with proof

4110
02:13:27,966 --> 02:13:29,200
around the benefit ideally

4111
02:13:29,400 --> 02:13:30,666
now a little pro tip

4112
02:13:30,666 --> 02:13:31,900
like I said whisper to shout

4113
02:13:31,900 --> 02:13:33,600
you can use the exact same framework I have there

4114
02:13:33,600 --> 02:13:34,866
for countdowns and urgency

4115
02:13:34,866 --> 02:13:37,900
okay so announcing the grand prize winner um

4116
02:13:38,100 --> 02:13:39,666
once you do that you then

4117
02:13:39,666 --> 02:13:41,700
so let's say you've got you do a webinar

4118
02:13:41,700 --> 02:13:43,166
you do a big a big raw raw

4119
02:13:43,166 --> 02:13:44,533
whether that's local on a stage

4120
02:13:44,533 --> 02:13:46,900
you invite everyone to a thing you do a virtual call

4121
02:13:46,900 --> 02:13:48,666
whatever is fine you do it in a group

4122
02:13:49,000 --> 02:13:50,800
I like to bring everyone together

4123
02:13:50,800 --> 02:13:51,933
because it's gonna maximize

4124
02:13:51,933 --> 02:13:54,133
my ability to sell and convert alright

4125
02:13:54,133 --> 02:13:55,466
and so um

4126
02:13:56,066 --> 02:13:57,400
we announce it publicly

4127
02:13:57,400 --> 02:14:00,500
then we message everyone else privately alright

4128
02:14:00,500 --> 02:14:03,066
this is the key point many will enter

4129
02:14:03,100 --> 02:14:04,133
many will win

4130
02:14:04,133 --> 02:14:06,700
that's the key point of what makes this work right

4131
02:14:06,700 --> 02:14:08,200
and so now

4132
02:14:08,200 --> 02:14:10,200
I'm not saying everybody wins the grand prize

4133
02:14:10,266 --> 02:14:11,533
but everyone gets a promotional offer

4134
02:14:11,533 --> 02:14:13,366
to apply to the grand prize

4135
02:14:13,366 --> 02:14:15,266
which is awesome that's their participation trophy

4136
02:14:15,266 --> 02:14:17,100
because of the work that they did

4137
02:14:17,100 --> 02:14:18,933
because they were such a great participant

4138
02:14:18,933 --> 02:14:19,966
because they comment to the group

4139
02:14:19,966 --> 02:14:21,700
because they shared because they told you a good story

4140
02:14:21,700 --> 02:14:23,600
you can use whatever because you want

4141
02:14:23,600 --> 02:14:25,900
but just give them a reason for why they're getting

4142
02:14:26,266 --> 02:14:27,400
the voucher the store credit

4143
02:14:27,400 --> 02:14:28,800
the gift card the discount

4144
02:14:28,800 --> 02:14:30,800
whatever you want let them know email

4145
02:14:30,800 --> 02:14:33,966
text direct message on that big webinar presentation

4146
02:14:33,966 --> 02:14:35,766
you can also do the same structure

4147
02:14:35,766 --> 02:14:38,333
which is people get on and then afterwards you can say

4148
02:14:38,333 --> 02:14:40,566
hey I saw you on there and you can have your own team

4149
02:14:40,566 --> 02:14:43,266
or if it's just you messaging them saying hey

4150
02:14:43,266 --> 02:14:45,200
I think this would still be a good fit for you

4151
02:14:45,366 --> 02:14:46,866
I wanna do a partial scholarship

4152
02:14:46,866 --> 02:14:48,100
so I'm gonna be reaching out to

4153
02:14:48,100 --> 02:14:49,266
some of you guys on this call

4154
02:14:49,266 --> 02:14:51,066
and afterwards to get that set up

4155
02:14:51,066 --> 02:14:53,466
and then again we have to restart our urgency

4156
02:14:53,533 --> 02:14:54,600
because otherwise they're gonna be like

4157
02:14:54,600 --> 02:14:55,533
yeah I'll do it someday

4158
02:14:55,533 --> 02:14:56,066
for the same reason

4159
02:14:56,066 --> 02:14:57,866
people don't buy and take action immediately right

4160
02:14:57,866 --> 02:14:59,366
it's always easier to just delay things

4161
02:14:59,366 --> 02:15:00,966
so we wanna drive the urgency

4162
02:15:02,100 --> 02:15:02,666
so uh

4163
02:15:02,666 --> 02:15:03,266
in that message

4164
02:15:03,266 --> 02:15:05,666
you ask them to schedule a call to redeem the prize uh

4165
02:15:05,666 --> 02:15:07,666
and make sure they redeem the promotional offer again

4166
02:15:07,666 --> 02:15:09,100
add another deadline okay

4167
02:15:09,133 --> 02:15:10,966
again three to 7 days tends to work well

4168
02:15:11,000 --> 02:15:13,200
and the second one works like the first

4169
02:15:13,200 --> 02:15:15,333
show the benefits show more social proof

4170
02:15:15,333 --> 02:15:16,866
more valuable stuff about the offer

4171
02:15:16,966 --> 02:15:18,733
so I'm gonna give you a little bit of math on how to

4172
02:15:18,733 --> 02:15:19,600
like kind of walk through this

4173
02:15:19,600 --> 02:15:21,000
so when you're explaining

4174
02:15:21,000 --> 02:15:22,200
the promotional offer to winners

4175
02:15:22,200 --> 02:15:24,166
you wanna use like kind of cost to value

4176
02:15:24,166 --> 02:15:26,066
using their discount their store credit the

4177
02:15:26,066 --> 02:15:28,133
the partial scholarship um

4178
02:15:28,133 --> 02:15:29,300
that you're giving them right

4179
02:15:29,300 --> 02:15:29,566
and so

4180
02:15:29,566 --> 02:15:31,466
my rule of thumb is to make your promotional offer

4181
02:15:31,466 --> 02:15:35,066
equal to 10 to 30% of your gross margins alright

4182
02:15:35,066 --> 02:15:37,366
and so for example let's say we advertise a grand prize

4183
02:15:37,366 --> 02:15:38,800
with a 5,000 dollar value

4184
02:15:38,800 --> 02:15:41,500
but a 2,000 dollar retail price tag alright

4185
02:15:41,500 --> 02:15:43,900
so the promotional offer winner gets uh

4186
02:15:43,900 --> 02:15:47,666
gets it for 18 bucks that's 10% off retail alright

4187
02:15:47,666 --> 02:15:49,066
but when we let them know

4188
02:15:49,066 --> 02:15:49,933
they won the promotional offer

4189
02:15:49,933 --> 02:15:52,900
we explain that they get 5,000 dollars in value

4190
02:15:52,900 --> 02:15:55,133
for an 18 dollar price tag alright

4191
02:15:55,133 --> 02:15:55,666
very exceptional

4192
02:15:55,666 --> 02:15:57,766
so if I'm that travel agent for example

4193
02:15:57,766 --> 02:16:00,033
I might say if you were to book this vacation

4194
02:16:00,200 --> 02:16:02,700
not through me without all the discounts I can get

4195
02:16:02,700 --> 02:16:04,300
this would cost you $5,000 to do

4196
02:16:04,300 --> 02:16:06,333
now if somebody goes through my traditional services

4197
02:16:06,333 --> 02:16:07,766
I I might say okay

4198
02:16:07,766 --> 02:16:10,900
well I can get this thing for $2,000 um

4199
02:16:10,900 --> 02:16:12,500
and that's what I might be able to retail for

4200
02:16:12,500 --> 02:16:15,366
but my participation trophy winners will get 10

4201
02:16:15,366 --> 02:16:16,366
20 30% off

4202
02:16:16,366 --> 02:16:18,466
so that would be somewhere between

4203
02:16:18,500 --> 02:16:20,733
200 and 600 dollars off my normal 2

4204
02:16:20,733 --> 02:16:22,933
thousand dollar offer but when I'm comparing it

4205
02:16:22,933 --> 02:16:25,200
I always have my baked in

4206
02:16:25,200 --> 02:16:27,166
efficiencies of what they would have to do

4207
02:16:27,166 --> 02:16:28,166
to get this on their own

4208
02:16:28,166 --> 02:16:30,066
if they were to just get it through retail

4209
02:16:30,066 --> 02:16:32,066
not through my services as a travel agent

4210
02:16:32,266 --> 02:16:34,800
and so $5,000 gets discounted

4211
02:16:34,800 --> 02:16:38,133
or they can see the discrepancy in value between 5,000

4212
02:16:38,133 --> 02:16:41,266
and 18 so now it seems like a screaming hot deal

4213
02:16:41,266 --> 02:16:43,466
which makes it more likely for them to take it right

4214
02:16:43,466 --> 02:16:45,166
and so you can just compare the difference of a 10%

4215
02:16:45,166 --> 02:16:46,700
discount to a 64%

4216
02:16:46,766 --> 02:16:47,533
very big difference

4217
02:16:47,533 --> 02:16:49,500
and so we want to talk in those terms alright

4218
02:16:49,500 --> 02:16:51,166
beyond that bottom line is that remember

4219
02:16:51,166 --> 02:16:52,500
everyone entered the giveaway

4220
02:16:52,500 --> 02:16:53,933
showed interest in your thing

4221
02:16:53,933 --> 02:16:55,133
if you remember nothing else

4222
02:16:55,133 --> 02:16:56,533
this is the most important point

4223
02:16:56,533 --> 02:17:00,100
we want to sell the hell out of our grand prize

4224
02:17:00,100 --> 02:17:01,800
because we want people to be super interested

4225
02:17:01,800 --> 02:17:02,933
and because there's a chance

4226
02:17:02,933 --> 02:17:06,866
to win so many more people want to dream about it

4227
02:17:06,866 --> 02:17:09,166
they want to imagine what life will be like

4228
02:17:09,166 --> 02:17:11,066
and so a lot of the persuasive techniques

4229
02:17:11,066 --> 02:17:14,000
because there's a chance of winning it for free

4230
02:17:14,000 --> 02:17:17,300
tend to be even more effective in this setting

4231
02:17:17,400 --> 02:17:18,666
alright so I can't under I can like

4232
02:17:18,666 --> 02:17:21,000
I can't undersell this value to you

4233
02:17:21,000 --> 02:17:21,400
like

4234
02:17:21,400 --> 02:17:23,366
this is one of the things that makes this so powerful

4235
02:17:23,366 --> 02:17:25,733
also one of the reasons this regulated alright

4236
02:17:25,733 --> 02:17:28,033
and so if anybody shows interest in your thing

4237
02:17:28,066 --> 02:17:30,766
you should have an offer to give to them

4238
02:17:31,100 --> 02:17:32,566
that's the point alright

4239
02:17:32,566 --> 02:17:33,500
and so that's how it works

4240
02:17:33,500 --> 02:17:34,933
I'll give you a couple examples real quick

4241
02:17:34,933 --> 02:17:36,800
so um if I were a dentist

4242
02:17:37,366 --> 02:17:39,966
I might do a pre uh free Perfect Smile giveaway

4243
02:17:39,966 --> 02:17:42,566
so grand prize might be a free set of invisible braces

4244
02:17:42,566 --> 02:17:44,066
6,000 dollar retail price

4245
02:17:44,100 --> 02:17:46,533
my promotional offer might be 2,000 dollar gift card

4246
02:17:46,533 --> 02:17:47,900
for my braces right

4247
02:17:47,933 --> 02:17:48,866
okay uh

4248
02:17:48,866 --> 02:17:50,200
if I have a physical products business

4249
02:17:50,200 --> 02:17:52,533
I might be doing a year of organic dog food

4250
02:17:52,533 --> 02:17:53,600
subscription alright

4251
02:17:53,600 --> 02:17:55,533
so the grand prize your

4252
02:17:55,533 --> 02:17:57,366
your food a thousand dollar retail price

4253
02:17:57,366 --> 02:17:58,200
and the promotional offer

4254
02:17:58,200 --> 02:17:59,566
might be a 300 dollar gift card

4255
02:17:59,566 --> 02:18:02,000
for food only usable with a one year subscription

4256
02:18:02,000 --> 02:18:04,400
right or only usable if you prepay it upfront

4257
02:18:04,400 --> 02:18:05,966
like you can put terms on these things

4258
02:18:06,166 --> 02:18:07,933
um the next is services offer

4259
02:18:07,933 --> 02:18:09,000
so let's say you have the free

4260
02:18:09,000 --> 02:18:10,366
ultimate giveaway for whatever services

4261
02:18:10,366 --> 02:18:11,566
you have alright

4262
02:18:11,566 --> 02:18:15,233
so uh free one year package 5,000 dollar retail price

4263
02:18:15,266 --> 02:18:17,700
your promotional offer is a 2,000 dollar voucher

4264
02:18:17,700 --> 02:18:19,566
redeemable towards one year of service

4265
02:18:19,566 --> 02:18:21,900
now if you have you know really crappy margins

4266
02:18:21,900 --> 02:18:23,200
then you're gonna cut this voucher down

4267
02:18:23,200 --> 02:18:24,900
that's okay um

4268
02:18:25,400 --> 02:18:26,400
I prefer to tend I

4269
02:18:26,400 --> 02:18:29,800
I prefer to sell higher higher margin services um

4270
02:18:29,800 --> 02:18:32,500
but these type of things really drive behavior

4271
02:18:32,800 --> 02:18:33,866
if you had a consulting offer

4272
02:18:33,866 --> 02:18:35,700
like a free 16 week turnaround

4273
02:18:35,700 --> 02:18:37,100
which could be business

4274
02:18:37,100 --> 02:18:38,866
it could be health it could be relationship

4275
02:18:38,866 --> 02:18:40,233
it could be whatever right

4276
02:18:40,266 --> 02:18:42,466
so let's say that's a 12 thousand dollar retail price

4277
02:18:42,466 --> 02:18:46,400
it's my mega Cadillac super super duper version uh

4278
02:18:46,400 --> 02:18:48,666
my promotional offer might be a partial

4279
02:18:48,666 --> 02:18:51,733
which might either be half the time or half the price

4280
02:18:51,733 --> 02:18:54,200
or the same duration with one piece removed

4281
02:18:54,200 --> 02:18:55,566
no matter what um

4282
02:18:55,566 --> 02:18:57,733
these things all combined together um

4283
02:18:57,733 --> 02:18:59,166
and make a really compelling offer

4284
02:18:59,166 --> 02:19:00,533
those are some of the examples a couple

4285
02:19:00,533 --> 02:19:02,866
couple little details for you um

4286
02:19:02,866 --> 02:19:04,900
talk to your law people about law things

4287
02:19:05,100 --> 02:19:06,533
make sure that they're legal in your area

4288
02:19:06,533 --> 02:19:08,700
the how you do it eligibility criteria

4289
02:19:09,266 --> 02:19:11,733
get you more customers to buy the promotional offer

4290
02:19:11,733 --> 02:19:13,466
so I ask questions like to

4291
02:19:13,466 --> 02:19:15,966
you know just to get ammo for a sales conversation

4292
02:19:15,966 --> 02:19:16,933
so why should we pick you

4293
02:19:16,933 --> 02:19:18,066
why this program why now

4294
02:19:18,066 --> 02:19:18,966
why does this matter to you

4295
02:19:18,966 --> 02:19:21,133
why is this important what are your goals right

4296
02:19:21,133 --> 02:19:22,066
these are all important questions

4297
02:19:22,066 --> 02:19:24,766
you can ask in an application that then you can cipher

4298
02:19:24,766 --> 02:19:26,666
you know go through them and say oh

4299
02:19:26,666 --> 02:19:27,500
these are really good people

4300
02:19:27,500 --> 02:19:28,533
and you can also order the leads

4301
02:19:28,533 --> 02:19:28,900
and score

4302
02:19:28,900 --> 02:19:30,366
them based on who you think is more likely to buy

4303
02:19:30,366 --> 02:19:31,366
you can also ask for income

4304
02:19:31,366 --> 02:19:33,366
you can ask for whatever you want um

4305
02:19:33,366 --> 02:19:34,566
if your giveaway doesn't work

4306
02:19:34,566 --> 02:19:35,866
so let me just troubleshoot this for you

4307
02:19:35,866 --> 02:19:38,033
it means your grand prize wasn't grand enough

4308
02:19:38,066 --> 02:19:40,700
so I had um I had a portfolio company do a uh

4309
02:19:40,700 --> 02:19:44,233
do a giveaway and it bombed and I was like

4310
02:19:44,933 --> 02:19:46,400
how did they or they told me that it bombed

4311
02:19:46,400 --> 02:19:47,666
I was like there like giveaways always work

4312
02:19:47,666 --> 02:19:48,900
like how did this not work for you

4313
02:19:48,900 --> 02:19:50,200
and they told me the grand prize

4314
02:19:50,200 --> 02:19:52,433
was free tickets to their event

4315
02:19:52,733 --> 02:19:55,100
which is like $300 for the tickets for the event

4316
02:19:55,100 --> 02:19:56,533
this is a b to B business with a

4317
02:19:56,533 --> 02:19:58,766
like 40,000 dollar thing um

4318
02:19:58,800 --> 02:20:01,000
well like whatever 15 to 40 somewhere in that range

4319
02:20:01,000 --> 02:20:02,366
right and so it's like

4320
02:20:02,366 --> 02:20:04,666
so why do we think that 300 dollars of value

4321
02:20:04,666 --> 02:20:05,333
is in any way

4322
02:20:05,333 --> 02:20:07,433
like if we're going to sell 40 thousand dollar stuff

4323
02:20:07,633 --> 02:20:10,000
we need to have 40,000 dollar giveaways at minimum

4324
02:20:10,066 --> 02:20:14,166
and so they reran the campaign with equipment for uh

4325
02:20:14,166 --> 02:20:15,500
that business owner type

4326
02:20:15,533 --> 02:20:17,133
that was fifty thousand dollars of equipment

4327
02:20:17,133 --> 02:20:18,600
and then all of a sudden the giveaway worked right

4328
02:20:18,600 --> 02:20:20,666
and so like giveaways are only grand

4329
02:20:20,666 --> 02:20:21,600
if you have grand prizes

4330
02:20:21,600 --> 02:20:22,800
and they have to be super grand

4331
02:20:22,800 --> 02:20:24,966
because people have to want them right

4332
02:20:25,100 --> 02:20:27,266
um here's a little pro tip for you

4333
02:20:27,266 --> 02:20:29,133
you can give away two prizes for twice the leads

4334
02:20:29,133 --> 02:20:31,300
I'll give you an example on the next slide uh

4335
02:20:31,300 --> 02:20:33,000
so this is from school

4336
02:20:33,166 --> 02:20:34,766
so refer a winner and you win too

4337
02:20:34,766 --> 02:20:37,366
so this is really I think this is sexy as hell alright

4338
02:20:37,366 --> 02:20:38,700
so I'll just read this to you

4339
02:20:38,700 --> 02:20:39,900
but many of many of you are inviting

4340
02:20:39,900 --> 02:20:40,866
friends to play the games with you

4341
02:20:40,866 --> 02:20:42,133
and that's the point to make business fun

4342
02:20:42,133 --> 02:20:43,066
to encourage us even more

4343
02:20:43,066 --> 02:20:44,733
we're adding a new incentive alright

4344
02:20:44,733 --> 02:20:47,200
if a person you refer gets in the top 10

4345
02:20:47,200 --> 02:20:49,100
you get to come too so they won prizes

4346
02:20:49,100 --> 02:20:50,333
and so the whole point is

4347
02:20:50,333 --> 02:20:52,633
if you double your grand prizes

4348
02:20:52,900 --> 02:20:54,400
then what you can do is hey

4349
02:20:54,400 --> 02:20:55,766
I'm gonna do this grand prize winner

4350
02:20:55,766 --> 02:20:58,133
but if you're the person who referred the grand prize

4351
02:20:58,133 --> 02:21:00,766
winner then you win a grand prize too

4352
02:21:00,766 --> 02:21:01,900
so let's say in that

4353
02:21:01,900 --> 02:21:03,100
in that example with the equipment

4354
02:21:03,100 --> 02:21:05,700
I would say OK instead of $50,000 equipment

4355
02:21:05,700 --> 02:21:07,366
I'm gonna give two 50,000 dollar packages

4356
02:21:07,366 --> 02:21:09,100
or you can give two 25,000 dollar packages

4357
02:21:09,100 --> 02:21:11,266
whatever two big packages

4358
02:21:11,500 --> 02:21:13,033
and so that then gets

4359
02:21:13,133 --> 02:21:14,200
every single

4360
02:21:14,200 --> 02:21:16,400
person who's coming into the contest to say wait

4361
02:21:16,400 --> 02:21:18,000
I can get way more chances to win

4362
02:21:18,000 --> 02:21:20,666
like every person I refer gives me another shot to win

4363
02:21:20,666 --> 02:21:20,900
so

4364
02:21:20,900 --> 02:21:23,800
there's a huge incentive now to refer tons of people

4365
02:21:23,800 --> 02:21:24,900
and this can double triple

4366
02:21:24,900 --> 02:21:27,266
quadruple the amount of leads you get in a giveaway

4367
02:21:27,266 --> 02:21:28,533
if the giveaway is good enough

4368
02:21:28,533 --> 02:21:32,133
so again these are regulated for a reason alright

4369
02:21:32,133 --> 02:21:33,166
um but this

4370
02:21:33,166 --> 02:21:35,200
this crushes so highly recommend doing that

4371
02:21:35,200 --> 02:21:35,866
if you

4372
02:21:35,866 --> 02:21:37,866
if you have the cash of the capital double the SNF

4373
02:21:37,866 --> 02:21:39,666
I would do it all marketing rules apply

4374
02:21:39,666 --> 02:21:40,966
so scarcity scarcity scarcity

4375
02:21:40,966 --> 02:21:43,366
limit your giveaway by time number of entries are both

4376
02:21:43,366 --> 02:21:45,266
you can run the giveaways for specific amount of time

4377
02:21:45,266 --> 02:21:46,133
like 7 days

4378
02:21:46,133 --> 02:21:49,600
a specific number of entry like 5,000 entries or both

4379
02:21:49,600 --> 02:21:51,300
I like both now I wanna be clear

4380
02:21:51,300 --> 02:21:53,066
how would you use the scarcity part

4381
02:21:53,066 --> 02:21:53,300
well

4382
02:21:53,300 --> 02:21:56,766
I tend to limit scarcity based on how many people um

4383
02:21:56,766 --> 02:21:59,100
I have the time and resources to connect with

4384
02:21:59,100 --> 02:22:00,866
so if I don't have the team

4385
02:22:00,900 --> 02:22:03,833
to be able to actually reach out to more than 200 leads

4386
02:22:04,100 --> 02:22:06,100
then I wanna I wanna put my

4387
02:22:06,100 --> 02:22:08,400
my qualifications as high as possible

4388
02:22:08,666 --> 02:22:11,733
and I want to limit uh the amount of entries to 200

4389
02:22:11,733 --> 02:22:13,133
that also increases the chances of winning

4390
02:22:13,133 --> 02:22:14,600
which makes it even more attractive

4391
02:22:14,600 --> 02:22:16,000
for people to enter alright

4392
02:22:16,000 --> 02:22:17,333
and so if you can

4393
02:22:17,333 --> 02:22:18,700
if you don't even have the bandwidth to

4394
02:22:18,700 --> 02:22:20,066
do more than 200 contacts

4395
02:22:20,066 --> 02:22:21,500
then cap it right

4396
02:22:21,500 --> 02:22:22,400
and if you can't do it

4397
02:22:22,400 --> 02:22:24,666
you can't reach out to those to 200 leads in

4398
02:22:24,666 --> 02:22:25,900
in any more than seven days

4399
02:22:25,900 --> 02:22:28,366
then it's like cap it at 7 207 done

4400
02:22:30,133 --> 02:22:31,333
which leads to the next one urgency

4401
02:22:31,333 --> 02:22:32,200
urgency urgency right

4402
02:22:32,200 --> 02:22:34,766
so I add urgency in three places for giveaways

4403
02:22:34,766 --> 02:22:36,200
No. 1 is to enter No. 2 is to claim

4404
02:22:36,200 --> 02:22:38,500
No. 3 is to use or to um

4405
02:22:38,600 --> 02:22:39,533
to use the the thing

4406
02:22:39,533 --> 02:22:41,200
cause even once you have

4407
02:22:41,200 --> 02:22:42,866
let's say a scholarship that you give away

4408
02:22:42,866 --> 02:22:45,466
or once you give someone a vacation

4409
02:22:45,566 --> 02:22:47,666
give them a time period to use it in right

4410
02:22:47,666 --> 02:22:48,933
cause you want them to actually consume it

4411
02:22:48,933 --> 02:22:50,866
cause big picture even for

4412
02:22:50,866 --> 02:22:51,800
and most importantly

4413
02:22:51,800 --> 02:22:53,566
for all the partial scholarship winners

4414
02:22:53,733 --> 02:22:56,300
uh this is important because you want them to start

4415
02:22:56,300 --> 02:22:57,700
you want them to become customers

4416
02:22:57,700 --> 02:22:59,600
you want them to buy right

4417
02:22:59,600 --> 02:23:02,266
and so this basically aligns with the three actions

4418
02:23:02,266 --> 02:23:05,233
we need them to take and so we put urgency around each

4419
02:23:05,233 --> 02:23:05,466
alright

4420
02:23:05,466 --> 02:23:07,500
and make it clear in the advertisements how that works

4421
02:23:07,500 --> 02:23:08,533
so once you announce the winners

4422
02:23:08,533 --> 02:23:09,966
let them know how long they have to claim

4423
02:23:09,966 --> 02:23:10,566
and when they do

4424
02:23:10,566 --> 02:23:12,766
schedule their call sometime the next week if you can

4425
02:23:12,766 --> 02:23:14,400
and then once you let them know what they want

4426
02:23:14,400 --> 02:23:15,933
tell them how long they have to use it

4427
02:23:15,933 --> 02:23:17,400
I like hours personally

4428
02:23:17,400 --> 02:23:19,200
but I've gone up to 5 days in short

4429
02:23:19,200 --> 02:23:20,266
just always have deadlines

4430
02:23:20,300 --> 02:23:22,966
so this is another another little interesting tidbit

4431
02:23:22,966 --> 02:23:25,300
um on a little

4432
02:23:25,300 --> 02:23:27,633
more advanced thing that I've Learned over the years

4433
02:23:27,700 --> 02:23:30,600
which is when you have the participation

4434
02:23:30,600 --> 02:23:32,800
trophy winner calls when you have the promotional

4435
02:23:32,800 --> 02:23:34,533
basically calls for everybody who didn't win

4436
02:23:34,533 --> 02:23:36,600
but you still want to get to buy something right

4437
02:23:36,700 --> 02:23:37,766
at the start of the call

4438
02:23:37,766 --> 02:23:40,000
let them know that they have two ways

4439
02:23:40,366 --> 02:23:42,166
to use their partial scholarship

4440
02:23:42,166 --> 02:23:43,100
their voucher

4441
02:23:43,100 --> 02:23:45,733
their gift card their credit whatever alright

4442
02:23:45,733 --> 02:23:47,066
and that you'll help them find

4443
02:23:47,066 --> 02:23:49,200
which way makes the most sense for them

4444
02:23:49,200 --> 02:23:52,533
and then offer the discount on the grand prize thing

4445
02:23:52,533 --> 02:23:55,566
first if they take that awesome

4446
02:23:55,733 --> 02:23:57,900
if not then offer the same discount

4447
02:23:57,900 --> 02:23:59,900
by percentage on any other product

4448
02:23:59,900 --> 02:24:01,066
that you have to make sense

4449
02:24:01,066 --> 02:24:02,766
so using the dentist example earlier

4450
02:24:02,766 --> 02:24:05,766
I might say hey the grand prize is the full teeth

4451
02:24:05,766 --> 02:24:07,566
and you're gonna get $2,000 off that

4452
02:24:07,566 --> 02:24:08,300
now they might be like

4453
02:24:08,300 --> 02:24:10,133
I can't afford that we might say well you know what

4454
02:24:10,133 --> 02:24:11,933
80% of your pictures are gonna be your top teeth

4455
02:24:11,933 --> 02:24:13,200
not your bottom teeth so

4456
02:24:13,200 --> 02:24:15,300
why don't we just do braces on your top teeth

4457
02:24:15,300 --> 02:24:16,666
for $3,000

4458
02:24:16,666 --> 02:24:18,600
and I'll give you a thousand bucks off that right

4459
02:24:18,600 --> 02:24:19,200
and so that way

4460
02:24:19,200 --> 02:24:21,300
you can have a back pocket offer for people who still

4461
02:24:21,300 --> 02:24:22,800
obviously want to improve their smile

4462
02:24:22,800 --> 02:24:23,800
they still want the main thing

4463
02:24:23,800 --> 02:24:25,300
but they might not be able to afford it right now

4464
02:24:25,300 --> 02:24:26,900
or might not be right for the business right now

4465
02:24:26,900 --> 02:24:28,866
and the key is to just discount by the same percentage

4466
02:24:28,866 --> 02:24:30,066
that way they don't feel like they're

4467
02:24:30,100 --> 02:24:32,566
they're losing out on their partial's caution okay

4468
02:24:33,000 --> 02:24:35,333
so if uh if you have a lot of no shows

4469
02:24:35,333 --> 02:24:36,300
for in person appointments

4470
02:24:36,300 --> 02:24:37,933
and that becomes an issue um

4471
02:24:37,933 --> 02:24:39,100
instead of doing mass notifications

4472
02:24:39,100 --> 02:24:40,300
for people who qualified

4473
02:24:40,433 --> 02:24:42,166
I just reach out to them individually

4474
02:24:42,200 --> 02:24:43,500
sometimes that happens so just

4475
02:24:43,500 --> 02:24:45,333
it basically just need to do more personalization

4476
02:24:45,333 --> 02:24:46,100
and when you get a hold of them

4477
02:24:46,100 --> 02:24:47,400
just let them know they have to claim the prize

4478
02:24:47,400 --> 02:24:49,266
so if you're recurring every business

4479
02:24:49,266 --> 02:24:50,200
what you want to do is apply

4480
02:24:50,200 --> 02:24:50,933
the promotional discount

4481
02:24:50,933 --> 02:24:52,100
over the longest period of time

4482
02:24:52,100 --> 02:24:53,433
that they'll agree to

4483
02:24:53,466 --> 02:24:54,933
and then set up monthly subscription

4484
02:24:54,933 --> 02:24:56,800
to build automatically at normal rates

4485
02:24:57,200 --> 02:24:59,133
after the discounted period ends okay

4486
02:24:59,133 --> 02:25:00,800
so let's say that someone wins

4487
02:25:00,800 --> 02:25:01,666
you know um

4488
02:25:02,566 --> 02:25:05,233
a partial discount for whatever $2,000

4489
02:25:05,333 --> 02:25:07,800
and you normally charge uh

4490
02:25:08,100 --> 02:25:10,000
$6,000 or let's let's for simple math

4491
02:25:10,000 --> 02:25:11,400
let's say you normally charge $8,000

4492
02:25:11,400 --> 02:25:14,566
you give him $2,000 off that's $6,000 for the year

4493
02:25:14,566 --> 02:25:16,933
so then I would just reverse that into $500 a month

4494
02:25:16,933 --> 02:25:18,100
which then at the end of the year

4495
02:25:18,100 --> 02:25:19,200
would bump up to whatever

4496
02:25:19,200 --> 02:25:22,133
$8,000 divided by 12 is right um

4497
02:25:22,133 --> 02:25:24,000
and that way you get the recurring revenue

4498
02:25:24,300 --> 02:25:26,133
uh on a on a regular basis

4499
02:25:26,133 --> 02:25:26,500
and again

4500
02:25:26,500 --> 02:25:28,666
that's you wanna spread it over as long as possible

4501
02:25:28,666 --> 02:25:30,166
but you wanna collect as much cash as possible

4502
02:25:30,166 --> 02:25:30,666
from up front

4503
02:25:30,666 --> 02:25:34,200
so if someone will pay six up front do that obviously

4504
02:25:34,566 --> 02:25:35,466
uh but if you can't do that

4505
02:25:35,466 --> 02:25:37,000
then extend it over as long period of time

4506
02:25:37,000 --> 02:25:38,566
this is what I'm trying to help you avoid

4507
02:25:38,700 --> 02:25:39,900
you don't want to say OK

4508
02:25:39,900 --> 02:25:42,666
I'm gonna give you $2,000 for the first four months

4509
02:25:42,700 --> 02:25:44,566
and then you'll start getting billed on month five

4510
02:25:44,566 --> 02:25:45,733
do not do that it doesn't work

4511
02:25:45,733 --> 02:25:46,700
it sucks I've already

4512
02:25:46,700 --> 02:25:48,066
I've already got the scar tissue to show it

4513
02:25:48,066 --> 02:25:48,833
don't do it

4514
02:25:48,833 --> 02:25:50,500
just try and spread it over longer periods of time

4515
02:25:50,500 --> 02:25:51,866
alright so those are the important points

4516
02:25:51,866 --> 02:25:53,700
so this is a quick quick recap

4517
02:25:53,700 --> 02:25:55,000
so at the core free giveaways

4518
02:25:55,000 --> 02:25:56,566
ask an audience to apply

4519
02:25:56,566 --> 02:25:58,833
to get a high value thing of yours for free

4520
02:25:58,933 --> 02:26:01,233
many will enter many will win

4521
02:26:01,700 --> 02:26:05,266
or one wins and then the rest win discounts uh

4522
02:26:05,266 --> 02:26:07,566
you wanna pick a grand prize that people want

4523
02:26:07,566 --> 02:26:10,066
it has to be sexy you do a bad grand prize

4524
02:26:10,066 --> 02:26:12,500
like do not be cheap on your grand prize 2

4525
02:26:12,500 --> 02:26:15,533
give 2 prizes away if you want more people to refer

4526
02:26:15,533 --> 02:26:16,700
I think a grand prize

4527
02:26:16,700 --> 02:26:19,500
should be about the value of your high cost thing right

4528
02:26:19,500 --> 02:26:22,100
now to be clear the reason this is also valuable

4529
02:26:22,100 --> 02:26:23,800
is that if you give away something that you

4530
02:26:23,800 --> 02:26:25,333
that retails that you actually sell for

4531
02:26:25,333 --> 02:26:26,466
let's say $10,000

4532
02:26:26,666 --> 02:26:29,466
then it's really is only gonna cost you maybe two

4533
02:26:29,466 --> 02:26:31,100
3 thousand dollars in terms of hard cost

4534
02:26:31,100 --> 02:26:32,766
or services to deliver that thing

4535
02:26:32,800 --> 02:26:35,700
and so like that's a smoking hot like

4536
02:26:35,700 --> 02:26:36,966
it's not that much money compared to how much

4537
02:26:36,966 --> 02:26:38,333
you have to spend in marketing right

4538
02:26:38,333 --> 02:26:41,200
which is why cash giveaways are like my least favorite

4539
02:26:41,366 --> 02:26:43,533
type of thing because I mean

4540
02:26:43,533 --> 02:26:45,800
I have done them but they

4541
02:26:45,800 --> 02:26:47,133
they tend to be my least favorite

4542
02:26:47,133 --> 02:26:48,633
because they are the least original

4543
02:26:48,733 --> 02:26:50,866
now the plus side of cash giveaways is that

4544
02:26:50,866 --> 02:26:52,933
they are valuable to everyone right

4545
02:26:52,933 --> 02:26:54,266
and so if you are in a niche

4546
02:26:54,266 --> 02:26:56,500
which I hope you are cause you know who your Avatar is

4547
02:26:56,500 --> 02:26:58,100
being more specific and making the

4548
02:26:58,100 --> 02:26:59,266
the grand prize around your service

4549
02:26:59,266 --> 02:27:01,066
allows you to bake in the difference between

4550
02:27:01,066 --> 02:27:01,800
what it cost you

4551
02:27:01,800 --> 02:27:04,066
versus what the value of it is at a retail price

4552
02:27:04,066 --> 02:27:06,066
and I think that's a huge arbitrage opportunity

4553
02:27:06,066 --> 02:27:07,733
it also makes doubling the prizes

4554
02:27:07,733 --> 02:27:09,500
when you give two away easier

4555
02:27:09,500 --> 02:27:10,966
cause if you give two 10,000 dollar prizes away

4556
02:27:10,966 --> 02:27:13,633
that really only cost you two or three at hard costs

4557
02:27:13,800 --> 02:27:15,400
still works great okay

4558
02:27:15,400 --> 02:27:16,166
so then

4559
02:27:16,166 --> 02:27:17,533
you want to offer a chance to win the grand prize

4560
02:27:17,533 --> 02:27:19,066
to anyone who enters and qualifies

4561
02:27:19,066 --> 02:27:20,966
key point and qualifies

4562
02:27:21,933 --> 02:27:22,566
don't just give it to anyone

4563
02:27:22,566 --> 02:27:24,733
like they have to qualify in order to win uh

4564
02:27:24,733 --> 02:27:26,300
and you get great information from every lead

4565
02:27:26,300 --> 02:27:27,900
because you make it part of the entry process

4566
02:27:27,900 --> 02:27:29,133
and this is why I think this is so magical

4567
02:27:29,133 --> 02:27:30,100
people are just willing to

4568
02:27:30,100 --> 02:27:31,933
enter pages and paragraphs about themselves

4569
02:27:31,933 --> 02:27:33,833
whereas if you just did a normal lead gen campaign

4570
02:27:34,066 --> 02:27:35,866
it's hard to get two or three fields right

4571
02:27:35,866 --> 02:27:37,800
let alone here you can get massive applications

4572
02:27:37,800 --> 02:27:39,600
with whole life stories uh

4573
02:27:39,600 --> 02:27:41,900
built into them because people want to win something

4574
02:27:42,900 --> 02:27:45,100
so get that information um

4575
02:27:45,133 --> 02:27:46,400
and then it'll indicate how your offer

4576
02:27:46,400 --> 02:27:47,533
provide more value to them

4577
02:27:47,533 --> 02:27:48,366
and this becomes it

4578
02:27:48,366 --> 02:27:50,600
very important for when you offer your discounted

4579
02:27:50,600 --> 02:27:51,333
or your promotional

4580
02:27:51,333 --> 02:27:53,266
or your participation trophy offers later

4581
02:27:54,733 --> 02:27:56,766
advertise your 7 giveaway for you know

4582
02:27:56,766 --> 02:27:58,533
three to seven days or

4583
02:27:58,533 --> 02:28:00,466
hit the number of people that you can manage to call

4584
02:28:00,766 --> 02:28:02,700
in that time period whichever comes first

4585
02:28:02,700 --> 02:28:05,066
everyone who doesn't win the grand prize and qualifies

4586
02:28:05,066 --> 02:28:06,600
gets offered the promotional offer

4587
02:28:07,166 --> 02:28:08,900
book appointments with the promotional offer winners

4588
02:28:08,900 --> 02:28:11,300
to credit their win towards the grand prize

4589
02:28:11,500 --> 02:28:13,300
give them limited time to claim their prize

4590
02:28:13,300 --> 02:28:13,566
then

4591
02:28:13,566 --> 02:28:15,566
put an expiration date on people claiming the prizes

4592
02:28:15,566 --> 02:28:17,200
making them more likely to claim it

4593
02:28:17,200 --> 02:28:18,000
and if somebody says no

4594
02:28:18,000 --> 02:28:19,733
to your main participation trophy offer

4595
02:28:19,733 --> 02:28:21,966
have another product uh

4596
02:28:21,966 --> 02:28:23,100
that's probably like half the price

4597
02:28:23,100 --> 02:28:25,333
to 1/3 of the price that you have in your back pocket

4598
02:28:25,333 --> 02:28:27,466
to make available to them alright

4599
02:28:27,500 --> 02:28:29,400
um and it cause it might suit them better

4600
02:28:29,400 --> 02:28:31,366
I would just keep the percentage discount the same

4601
02:28:31,366 --> 02:28:33,000
that way they still feel like they want something

4602
02:28:33,300 --> 02:28:35,466
beyond that that is how you do free giveaways

4603
02:28:35,466 --> 02:28:39,700
those destroy like murder across markets

4604
02:28:39,700 --> 02:28:40,800
physical products

4605
02:28:40,966 --> 02:28:44,466
brick and mortar online like these work

4606
02:28:44,600 --> 02:28:47,666
so use them at your own peril

4607
02:28:49,500 --> 02:28:50,766
so we just covered win your money

4608
02:28:50,766 --> 02:28:51,733
back and free giveaways

4609
02:28:51,733 --> 02:28:53,700
as two of my favorite attraction offers

4610
02:28:53,733 --> 02:28:56,333
now we get into what I believe is the most flexible

4611
02:28:56,333 --> 02:28:57,066
attraction offer

4612
02:28:57,066 --> 02:28:58,466
that works for just about any business

4613
02:28:58,466 --> 02:29:00,366
which is the decoy offer

4614
02:29:00,733 --> 02:29:03,766
so same 5 how I Learned description examples

4615
02:29:03,766 --> 02:29:04,733
important points and summary

4616
02:29:04,733 --> 02:29:06,866
let's rock and roll so how I Learned it

4617
02:29:06,866 --> 02:29:10,033
so John was a mentor of mine

4618
02:29:10,200 --> 02:29:11,466
at the very beginning of my career

4619
02:29:11,466 --> 02:29:13,466
he had 22 tanning salons

4620
02:29:13,666 --> 02:29:17,266
and he would drive me to his lake house

4621
02:29:17,700 --> 02:29:19,166
you know a couple times during the summer

4622
02:29:19,166 --> 02:29:21,100
and we'd have these three or four hour long drives

4623
02:29:21,200 --> 02:29:23,566
and he would just like impart life wisdom on me

4624
02:29:23,566 --> 02:29:25,300
and John had lived like an amazing life

4625
02:29:25,300 --> 02:29:27,866
he took basically 20 years off

4626
02:29:27,933 --> 02:29:29,566
and just raised his daughters

4627
02:29:29,566 --> 02:29:30,766
and just went to the lake and and

4628
02:29:30,766 --> 02:29:33,966
and shot 16 holes of golf five days a week

4629
02:29:33,966 --> 02:29:36,166
and just like lived life um

4630
02:29:36,166 --> 02:29:38,133
and he had started from nothing like really

4631
02:29:38,133 --> 02:29:39,666
really cool guy and so anyways

4632
02:29:39,666 --> 02:29:43,400
he was telling me how his 5 day VIP offer worked

4633
02:29:43,400 --> 02:29:45,533
at his tanning salons he's like so it works like this

4634
02:29:45,533 --> 02:29:47,200
we offer 5 dollar VIP gift cards

4635
02:29:47,200 --> 02:29:48,366
we put them on people's windshield

4636
02:29:48,366 --> 02:29:50,166
that's how they used to advertise back in the day

4637
02:29:50,166 --> 02:29:51,933
and so people would come in with these gift cards

4638
02:29:51,933 --> 02:29:55,166
for five bucks for a 5 day VIP pass to get tan

4639
02:29:55,266 --> 02:29:57,400
he said the thing is and this is the key part

4640
02:29:57,400 --> 02:30:00,300
is that people don't know how long it takes to get tan

4641
02:30:00,533 --> 02:30:04,033
and so they come in for with the five dollar gift card

4642
02:30:04,300 --> 02:30:07,766
uh for the VIP pass and we give them the Turkey talk

4643
02:30:07,766 --> 02:30:10,300
which is basically if you put a Turkey in

4644
02:30:10,300 --> 02:30:12,500
you can't cook it in 1/3 of the time by

4645
02:30:12,500 --> 02:30:14,600
by ramping up the the temperature

4646
02:30:14,600 --> 02:30:15,733
you just burn the shit out of it

4647
02:30:15,733 --> 02:30:17,000
and the insides undercooked

4648
02:30:17,000 --> 02:30:18,666
and so tanning kind of works the same way

4649
02:30:18,666 --> 02:30:20,500
is that you need to have multiple sessions

4650
02:30:20,533 --> 02:30:21,766
to get the right type of tan

4651
02:30:21,766 --> 02:30:24,166
otherwise you burn right we're like oh

4652
02:30:24,166 --> 02:30:24,933
got it and so it's like

4653
02:30:24,933 --> 02:30:26,300
you wanna get what shade of tan

4654
02:30:26,300 --> 02:30:27,900
so they would ask that when the person comes in

4655
02:30:27,900 --> 02:30:29,666
and then once they knew what shade of tan they wanted

4656
02:30:29,666 --> 02:30:31,966
cause it'd be easy to show them they'd say great

4657
02:30:31,966 --> 02:30:33,466
well Turkey talk got it

4658
02:30:33,466 --> 02:30:34,533
you're gonna need this amount of time

4659
02:30:34,533 --> 02:30:35,400
this many sessions

4660
02:30:35,400 --> 02:30:38,000
and so either you can pay 25 bucks per session

4661
02:30:38,166 --> 02:30:40,566
or why don't we just take that five dollar VIP

4662
02:30:40,566 --> 02:30:42,533
and you can pay 1999 a month

4663
02:30:42,533 --> 02:30:44,166
we'll take it off the 1999

4664
02:30:44,166 --> 02:30:45,666
and you get unlimited as you want

4665
02:30:45,733 --> 02:30:46,933
and everybody saw the value

4666
02:30:46,933 --> 02:30:49,333
and they'd convert right into EFTS

4667
02:30:49,333 --> 02:30:50,666
which is electronic fund transfers

4668
02:30:50,666 --> 02:30:53,033
which is just industry term for recurring membership

4669
02:30:53,200 --> 02:30:54,000
all right

4670
02:30:54,166 --> 02:30:58,200
so that's the VIP 5 day five dollar VIP story

4671
02:30:58,200 --> 02:30:59,600
now fast forward a few years

4672
02:30:59,600 --> 02:31:01,933
so I'm now in gym launch where four

4673
02:31:01,933 --> 02:31:02,466
you know three

4674
02:31:02,466 --> 02:31:04,800
four years in and all of a sudden

4675
02:31:04,800 --> 02:31:07,533
like our ads are not performing for the gyms

4676
02:31:07,533 --> 02:31:08,200
and I was like okay

4677
02:31:08,200 --> 02:31:10,000
we gotta come up with some sort of new offer

4678
02:31:10,066 --> 02:31:12,500
so I had my team just try a bunch of different things

4679
02:31:12,533 --> 02:31:16,100
and I remember this 5 day VIP story

4680
02:31:16,200 --> 02:31:17,200
and so we're like hey

4681
02:31:17,200 --> 02:31:18,700
why don't we try this one out too

4682
02:31:18,733 --> 02:31:19,066
and so

4683
02:31:19,066 --> 02:31:21,133
they tried this out in five different mini beta groups

4684
02:31:21,133 --> 02:31:23,400
and the winner was this free 21 day transformation

4685
02:31:23,400 --> 02:31:24,500
but here's how it worked

4686
02:31:24,766 --> 02:31:28,400
and so when someone would come in the decoy offer

4687
02:31:28,400 --> 02:31:29,900
this is the five dollar VIP

4688
02:31:29,900 --> 02:31:32,166
this is the they think they can get tan in one session

4689
02:31:32,166 --> 02:31:34,333
but they can't really is we say cool

4690
02:31:34,333 --> 02:31:37,166
so we just said free 21 day transformation

4691
02:31:37,466 --> 02:31:38,566
when they come in we'd say cool

4692
02:31:38,566 --> 02:31:40,500
the free version of this is

4693
02:31:40,500 --> 02:31:41,800
you get one workout per week

4694
02:31:41,800 --> 02:31:43,400
and you get at home nutrition course

4695
02:31:43,400 --> 02:31:44,400
we'll give you this course

4696
02:31:44,466 --> 02:31:45,166
you can take it at home

4697
02:31:45,166 --> 02:31:46,700
and you work out once a week for the next 21 days

4698
02:31:46,700 --> 02:31:48,566
which is three workouts OK

4699
02:31:49,100 --> 02:31:52,533
or we'll give you the unlimited version

4700
02:31:52,533 --> 02:31:53,933
so you work out as many times as you want

4701
02:31:53,933 --> 02:31:55,966
over the next 21 days we'll personalize your nutrition

4702
02:31:55,966 --> 02:31:57,266
we'll give you uh you know

4703
02:31:57,266 --> 02:31:58,200
grocery store instructions

4704
02:31:58,200 --> 02:31:59,133
exactly what you need to buy

4705
02:31:59,133 --> 02:32:01,900
we'll guarantee that you'll lose at least 10 pounds

4706
02:32:01,900 --> 02:32:03,966
or 15 pounds in the next 21

4707
02:32:03,966 --> 02:32:04,600
days

4708
02:32:04,600 --> 02:32:07,600
or we'll give you another 21 days free on the back

4709
02:32:07,600 --> 02:32:09,300
and when presented those two offers

4710
02:32:09,300 --> 02:32:11,500
they came in for the free 21 day transformation

4711
02:32:11,500 --> 02:32:13,333
but when they were presented the premium version

4712
02:32:13,333 --> 02:32:15,233
they said you know what I'd rather do that

4713
02:32:15,700 --> 02:32:17,966
upselling is as American as apple pie

4714
02:32:17,966 --> 02:32:20,766
there is nothing wrong with having an upsell

4715
02:32:20,800 --> 02:32:23,900
as long as you still offer something that is free

4716
02:32:23,900 --> 02:32:25,733
that complies with what your original promise was

4717
02:32:25,733 --> 02:32:27,400
in the advertisement so if someone comes in

4718
02:32:27,400 --> 02:32:29,466
and the key point of making this work is that

4719
02:32:29,600 --> 02:32:33,000
you can advertise the free 21 day transformation

4720
02:32:33,000 --> 02:32:35,100
not also you get all this stuff

4721
02:32:35,100 --> 02:32:37,300
if you say you get this other stuff too

4722
02:32:37,366 --> 02:32:38,800
then you have to deliver on it

4723
02:32:38,800 --> 02:32:39,566
and so the key is

4724
02:32:39,566 --> 02:32:41,800
this is one of the benefits of advertising results

4725
02:32:41,800 --> 02:32:43,466
rather than the the vehicle

4726
02:32:43,466 --> 02:32:44,966
because then you can choose the vehicle

4727
02:32:44,966 --> 02:32:45,866
and associate price

4728
02:32:45,866 --> 02:32:48,333
however you want in the sales presentation right

4729
02:32:48,333 --> 02:32:50,900
and so this offer structure right

4730
02:32:50,900 --> 02:32:53,966
this money model is 100% based on the upsell

4731
02:32:53,966 --> 02:32:56,266
this is how all of the money of this works

4732
02:32:56,400 --> 02:32:58,700
and the key if you have this structure properly is 70

4733
02:32:58,700 --> 02:33:01,300
80% of people should take the premium version

4734
02:33:01,333 --> 02:33:03,200
so description

4735
02:33:03,266 --> 02:33:06,266
so decoy offers advertise something free or discounted

4736
02:33:06,266 --> 02:33:10,000
so I could just as easily say 19 dollar or 21 dollar

4737
02:33:10,166 --> 02:33:11,800
21 day transformation they come in and they say cool

4738
02:33:11,800 --> 02:33:13,166
you can do the 20 dollar one you already paid for

4739
02:33:13,166 --> 02:33:17,633
it or I'll credit your 21 dollars towards a 421 dollar

4740
02:33:17,766 --> 02:33:18,933
thing which we'll roll it towards

4741
02:33:18,933 --> 02:33:20,600
and now you can buy an extra 400 bucks a day

4742
02:33:20,600 --> 02:33:21,766
and you're in right

4743
02:33:21,766 --> 02:33:24,133
so then when leads ask to learn more

4744
02:33:24,133 --> 02:33:26,766
you also present the more valuable premium offer

4745
02:33:26,766 --> 02:33:28,800
and the premium offer provides more features benefits

4746
02:33:28,800 --> 02:33:31,866
a bonus guarantees and so on

4747
02:33:31,866 --> 02:33:34,600
so by putting your decoy offer and premium offers

4748
02:33:34,600 --> 02:33:35,366
next to each other

4749
02:33:35,366 --> 02:33:37,166
they can see how much more valuable your premium

4750
02:33:37,166 --> 02:33:38,366
offer is and so

4751
02:33:38,366 --> 02:33:39,933
I like decoy offers so much

4752
02:33:39,933 --> 02:33:41,866
because they get more customers overall

4753
02:33:41,900 --> 02:33:44,566
and so they either take the decoy version

4754
02:33:44,966 --> 02:33:46,633
or they get the premium version

4755
02:33:46,800 --> 02:33:49,600
this is an assumed close that means everybody buys

4756
02:33:49,666 --> 02:33:52,733
I like that now if they take the premium version

4757
02:33:52,733 --> 02:33:53,300
great

4758
02:33:53,300 --> 02:33:56,566
if they take the decoy offer also great and guess what

4759
02:33:56,566 --> 02:33:58,400
you can also grab a couple of the bonuses

4760
02:33:58,400 --> 02:33:59,966
from the premium and toss them in

4761
02:33:59,966 --> 02:34:00,933
because you're like hey

4762
02:34:00,933 --> 02:34:02,100
I know you're only taking the

4763
02:34:02,100 --> 02:34:03,066
the one workout a week thing

4764
02:34:03,066 --> 02:34:04,600
but let me do some personal nutrition for you

4765
02:34:04,600 --> 02:34:06,666
come back in a week or come back in two days

4766
02:34:06,666 --> 02:34:07,000
and guess what

4767
02:34:07,000 --> 02:34:08,400
we do with the first nutrition consultant

4768
02:34:08,500 --> 02:34:10,566
sell $300 of supplements alright

4769
02:34:10,766 --> 02:34:13,500
and so it's it's all good alright

4770
02:34:13,500 --> 02:34:16,000
but either way here's the thing is you close everyone

4771
02:34:16,000 --> 02:34:17,600
and this makes it cheap and profitable

4772
02:34:17,600 --> 02:34:21,066
get new customers and any business can do this

4773
02:34:21,066 --> 02:34:22,633
you literally just take what you have

4774
02:34:22,766 --> 02:34:23,900
well I'll get into what it is

4775
02:34:23,900 --> 02:34:26,766
okay so here are the steps to make a decoy offer 1

4776
02:34:26,766 --> 02:34:28,100
advertise a lesser smaller

4777
02:34:28,100 --> 02:34:30,133
or simpler version of your premium offer

4778
02:34:30,133 --> 02:34:32,866
as the decoy offer then when leads engage

4779
02:34:32,866 --> 02:34:33,933
offer both options

4780
02:34:33,933 --> 02:34:36,300
but emphasize the premium one and use the bonuses

4781
02:34:36,300 --> 02:34:36,966
the premium value

4782
02:34:36,966 --> 02:34:39,000
and the guarantees to close the additional people

4783
02:34:39,133 --> 02:34:41,500
alright now let's do some examples

4784
02:34:41,600 --> 02:34:42,866
so let's say I have a lemonade stand

4785
02:34:42,866 --> 02:34:43,666
this is to prove the point

4786
02:34:43,666 --> 02:34:45,033
that works with literally any business

4787
02:34:45,200 --> 02:34:45,966
alright so you

4788
02:34:45,966 --> 02:34:47,133
the attraction offer is uh

4789
02:34:47,133 --> 02:34:48,800
this is like what the headline of the ad might be

4790
02:34:48,800 --> 02:34:49,566
so you say hey

4791
02:34:49,566 --> 02:34:51,500
free week of lemonade for all first time customers

4792
02:34:51,500 --> 02:34:53,266
okay now I'm not giving any features

4793
02:34:53,266 --> 02:34:54,900
I just said free week of lemonade

4794
02:34:55,300 --> 02:34:57,300
now option A this is the free week

4795
02:34:57,300 --> 02:34:59,866
is that you can have this free plus water and powder

4796
02:35:00,133 --> 02:35:01,133
uh this warm water

4797
02:35:01,133 --> 02:35:02,900
right and artificially sweetened

4798
02:35:02,900 --> 02:35:04,966
and it may give you digestive issues

4799
02:35:05,066 --> 02:35:07,266
uh but you can absolutely have this free lemonade

4800
02:35:07,266 --> 02:35:09,333
or you can have the organic

4801
02:35:09,333 --> 02:35:12,200
all natural vegan gluten free imported Italian lemons

4802
02:35:12,200 --> 02:35:12,700
which are cold

4803
02:35:12,700 --> 02:35:14,333
distilled and shipped straight to your door

4804
02:35:14,333 --> 02:35:16,300
so you never waste time coming into the store

4805
02:35:16,300 --> 02:35:18,266
and so it's like which one do you want right

4806
02:35:18,266 --> 02:35:19,100
of course you want this one

4807
02:35:19,100 --> 02:35:22,266
you want the premium one and so that's what people take

4808
02:35:22,366 --> 02:35:23,900
so let's say you've got um

4809
02:35:23,900 --> 02:35:25,400
this is actually a flow tank center

4810
02:35:25,400 --> 02:35:27,800
I had an agency that did flow tank stuff for a minute

4811
02:35:28,100 --> 02:35:28,733
uh in Allen

4812
02:35:28,733 --> 02:35:31,633
so they use a free six week stress release challenge

4813
02:35:31,766 --> 02:35:32,100
okay so

4814
02:35:32,100 --> 02:35:34,200
the attraction offer is a free six week stress release

4815
02:35:34,366 --> 02:35:36,000
uh or um

4816
02:35:36,000 --> 02:35:38,266
as you can say a six dollar six week stress release

4817
02:35:38,266 --> 02:35:39,633
either way that's free or discount

4818
02:35:40,300 --> 02:35:44,166
decoy option you get one float per month with at home

4819
02:35:44,166 --> 02:35:45,900
do it yourself stress relief exercises

4820
02:35:46,000 --> 02:35:49,700
or premium option is 2 a week floats for 6 weeks

4821
02:35:49,700 --> 02:35:51,366
one on one consulting journal

4822
02:35:51,366 --> 02:35:53,400
sleep routine and a satisfaction guarantee

4823
02:35:53,400 --> 02:35:56,000
guess what everyone took this one

4824
02:35:56,566 --> 02:35:58,766
alright now the gym offer this is the local one

4825
02:35:58,766 --> 02:35:59,166
so this is

4826
02:35:59,166 --> 02:36:00,533
this is basically the breakdown of what we did

4827
02:36:00,533 --> 02:36:01,733
so free 21 day transformation

4828
02:36:01,733 --> 02:36:03,733
or $21 day transformation uh

4829
02:36:03,733 --> 02:36:06,466
workouts done in a school.com group once a day

4830
02:36:06,466 --> 02:36:07,466
and a general nutrition plan

4831
02:36:07,466 --> 02:36:08,966
so it's like we're a local business

4832
02:36:08,966 --> 02:36:09,966
you can get one workout here

4833
02:36:09,966 --> 02:36:12,133
the rest of the workouts you can just do online right

4834
02:36:12,133 --> 02:36:13,100
you can watch the recordings

4835
02:36:13,100 --> 02:36:13,800
you get no support

4836
02:36:13,800 --> 02:36:16,400
you get no guarantee or you get unlimited workouts

4837
02:36:16,400 --> 02:36:17,400
a personalized nutrition plan

4838
02:36:17,400 --> 02:36:18,933
accountability results guaranteed

4839
02:36:18,933 --> 02:36:20,266
or you get a 20 days free

4840
02:36:20,366 --> 02:36:22,300
so now important points alright

4841
02:36:22,300 --> 02:36:26,366
so how to make your decoy offer offer fewer components

4842
02:36:26,700 --> 02:36:27,766
older models

4843
02:36:27,766 --> 02:36:30,966
or less personalized versions of your premium offer

4844
02:36:30,966 --> 02:36:32,466
cause some of you guys are like I don't know

4845
02:36:32,466 --> 02:36:34,200
I can think make my my DQ offer

4846
02:36:34,466 --> 02:36:36,700
think about what you have make it less personal

4847
02:36:36,733 --> 02:36:38,900
make a have you an older version of what you did

4848
02:36:38,900 --> 02:36:40,400
give them that like these are

4849
02:36:40,400 --> 02:36:40,533
you

4850
02:36:40,533 --> 02:36:43,500
just peel off features that cost you the most money

4851
02:36:43,733 --> 02:36:45,166
all right and then the thing is

4852
02:36:45,166 --> 02:36:45,200
is

4853
02:36:45,200 --> 02:36:47,066
your attraction offer only has to get people to engage

4854
02:36:47,066 --> 02:36:47,400
nothing more

4855
02:36:47,400 --> 02:36:48,733
you just need people to get opt ins for it

4856
02:36:48,733 --> 02:36:50,466
which is why you want to talk more about the outcome

4857
02:36:50,466 --> 02:36:51,966
and less about the vehicle

4858
02:36:52,800 --> 02:36:53,800
now yeah

4859
02:36:53,800 --> 02:36:55,900
advertise the benefits not the features I recover them

4860
02:36:56,200 --> 02:36:58,966
alright so now you can advertise discounts in four ways

4861
02:36:58,966 --> 02:37:00,100
we recovered that one earlier

4862
02:37:00,100 --> 02:37:01,900
but as a reminder uh

4863
02:37:01,900 --> 02:37:03,800
if you have your lawn thing and you give

4864
02:37:03,800 --> 02:37:05,033
and it's 1 hundred bucks a month

4865
02:37:05,066 --> 02:37:07,066
and you wanted them to pay $900 for the year

4866
02:37:07,066 --> 02:37:09,333
you could say 25% off you could say $300 off

4867
02:37:09,333 --> 02:37:10,400
you could say three months free

4868
02:37:10,400 --> 02:37:11,766
or you could say one year for $900

4869
02:37:11,766 --> 02:37:12,600
12 bucks

4870
02:37:13,500 --> 02:37:15,066
all different ways of saying the same thing

4871
02:37:15,100 --> 02:37:16,333
so these are all useful

4872
02:37:16,333 --> 02:37:18,400
especially with decoy offers'cause oftentimes

4873
02:37:18,400 --> 02:37:20,066
they are discounts alright

4874
02:37:20,066 --> 02:37:22,766
so the key to making this work is that the contrast

4875
02:37:22,766 --> 02:37:24,100
has to be huge alright

4876
02:37:24,100 --> 02:37:24,866
the bigger the contrast

4877
02:37:24,866 --> 02:37:26,533
the better the deal the more customers will take it

4878
02:37:26,533 --> 02:37:28,333
if people keep taking your free offer

4879
02:37:28,333 --> 02:37:29,766
your free offer is too good

4880
02:37:29,800 --> 02:37:31,933
and your paid offer is not good enough

4881
02:37:31,933 --> 02:37:33,600
so you want to keep doing this

4882
02:37:33,600 --> 02:37:35,866
until the obvious offer is to take

4883
02:37:35,866 --> 02:37:37,366
the premium offer alright

4884
02:37:37,366 --> 02:37:39,933
discount offers have higher shop rates than free offers

4885
02:37:39,933 --> 02:37:41,566
just as a pro tip if you do have these issues

4886
02:37:41,566 --> 02:37:42,966
you can do the 21 dollar thing

4887
02:37:42,966 --> 02:37:44,666
if you have shop rate issues in your market

4888
02:37:44,666 --> 02:37:47,833
if possible present the premium offer first now

4889
02:37:48,000 --> 02:37:50,100
if they ask for the decoy offer

4890
02:37:50,300 --> 02:37:51,933
most people don't you then present it

4891
02:37:51,933 --> 02:37:53,600
but I'll show you how to do this okay

4892
02:37:53,666 --> 02:37:54,766
so what you want to do is

4893
02:37:54,766 --> 02:37:56,600
get them to give you permission to sell them

4894
02:37:56,600 --> 02:37:58,866
so if they ask to peer about the decoy

4895
02:37:58,866 --> 02:38:00,900
then you're legally obligated to present it

4896
02:38:00,900 --> 02:38:02,733
on the other hand some of you guys might be

4897
02:38:02,733 --> 02:38:03,966
a little bit weak in the stomach

4898
02:38:03,966 --> 02:38:05,533
about just offering something

4899
02:38:05,533 --> 02:38:07,933
straight for the the high value thing

4900
02:38:07,933 --> 02:38:08,466
but here's

4901
02:38:08,466 --> 02:38:10,500
let me just share a little bit of like advertising

4902
02:38:10,700 --> 02:38:13,033
scars and like years of doing this

4903
02:38:13,500 --> 02:38:16,033
almost no one remembers what they opted in for

4904
02:38:16,266 --> 02:38:17,800
they barely remember the ad

4905
02:38:18,133 --> 02:38:20,333
and so they just they will

4906
02:38:20,333 --> 02:38:21,366
remember that this thing

4907
02:38:21,366 --> 02:38:22,800
solved the problem that they have

4908
02:38:22,800 --> 02:38:24,666
and then when you they come in

4909
02:38:24,700 --> 02:38:26,966
you can just make the offer that you want to make them

4910
02:38:26,966 --> 02:38:28,800
now if they do remember that thing

4911
02:38:28,800 --> 02:38:30,900
then by all means tell them about it

4912
02:38:31,466 --> 02:38:32,700
but if you are somebody who's like

4913
02:38:32,700 --> 02:38:35,500
I want to always offer the really cheap thing first

4914
02:38:35,500 --> 02:38:38,200
fine this works in the opposite way of price anchoring

4915
02:38:38,200 --> 02:38:39,200
but fine

4916
02:38:39,466 --> 02:38:41,966
have it your way so if you're gonna do it that way

4917
02:38:41,966 --> 02:38:43,000
here's how you do it

4918
02:38:43,533 --> 02:38:46,200
so you ask them a sorting question first

4919
02:38:46,200 --> 02:38:49,233
you say are you here for free stuff or lasting results

4920
02:38:50,800 --> 02:38:52,466
everybody's gonna say lasting results

4921
02:38:52,466 --> 02:38:53,700
some people will say free stuff

4922
02:38:53,700 --> 02:38:54,333
and those people suck

4923
02:38:54,333 --> 02:38:56,666
and you can just kick them out basically um

4924
02:38:56,733 --> 02:38:57,900
but as soon as they say results

4925
02:38:57,900 --> 02:39:00,000
which most people do you skip straight to premium

4926
02:39:00,000 --> 02:39:00,900
so this way you've got

4927
02:39:00,900 --> 02:39:03,133
permission to then sell them the premium offer now

4928
02:39:03,133 --> 02:39:04,933
if they say free then you say the free thing

4929
02:39:04,933 --> 02:39:06,166
and then you present the premium

4930
02:39:06,166 --> 02:39:10,300
so this way you can still have them ethically select

4931
02:39:10,333 --> 02:39:12,700
to get the premium offer first

4932
02:39:12,700 --> 02:39:13,900
by asking the question

4933
02:39:13,900 --> 02:39:16,266
because you asked them before you made the offer

4934
02:39:16,266 --> 02:39:18,566
now if they then at the end of the premium offer say

4935
02:39:18,566 --> 02:39:18,733
yes

4936
02:39:18,733 --> 02:39:21,933
I want to buy it shut up and close the sale that's it

4937
02:39:21,933 --> 02:39:23,100
you don't need to offer anything else

4938
02:39:23,666 --> 02:39:26,166
if they say free stuff you present the decoy offer

4939
02:39:26,166 --> 02:39:27,900
and then immediately contrast

4940
02:39:27,900 --> 02:39:28,600
like you don't even

4941
02:39:28,600 --> 02:39:30,266
give them the opportunity to say yes to it

4942
02:39:30,266 --> 02:39:33,133
you say and and then you go right into the next thing

4943
02:39:33,133 --> 02:39:36,666
alright and so then only after presenting both offers

4944
02:39:37,300 --> 02:39:39,766
you then say this is key

4945
02:39:40,133 --> 02:39:43,366
which do you think will get you to your goal faster

4946
02:39:44,466 --> 02:39:47,600
or which one would you prefer to have

4947
02:39:49,000 --> 02:39:49,700
and the thing is

4948
02:39:49,700 --> 02:39:51,800
is that everyone will prefer the better one

4949
02:39:51,800 --> 02:39:52,866
and everyone will think

4950
02:39:52,866 --> 02:39:54,700
the other one will get them to their goal faster

4951
02:39:54,700 --> 02:39:55,800
or you can also ask which one

4952
02:39:55,800 --> 02:39:57,566
do you think is more likely to help you get your goal

4953
02:39:57,566 --> 02:39:59,266
all three of those questions are fine

4954
02:39:59,266 --> 02:40:03,300
they obviously force the selection of this one

4955
02:40:03,300 --> 02:40:04,766
and they say great

4956
02:40:04,800 --> 02:40:06,200
and then you close the sale

4957
02:40:06,333 --> 02:40:08,566
all right and so you say uh

4958
02:40:08,566 --> 02:40:09,900
so which one did you prefer

4959
02:40:10,500 --> 02:40:11,700
and then they say great

4960
02:40:11,700 --> 02:40:12,600
they'll have the premium offer

4961
02:40:12,600 --> 02:40:13,733
and then you can move forward in the sale

4962
02:40:13,733 --> 02:40:16,400
mutually agreeing that is the best thing for them

4963
02:40:16,666 --> 02:40:18,766
so when making your premium offer

4964
02:40:18,766 --> 02:40:19,566
get excited about it

4965
02:40:19,566 --> 02:40:23,166
so present it as a superior offer to the decoy offer

4966
02:40:23,166 --> 02:40:24,766
because it is and assuming it

4967
02:40:24,766 --> 02:40:28,000
that it is how it is in the customer's best interest

4968
02:40:28,000 --> 02:40:29,266
so your excitement

4969
02:40:29,266 --> 02:40:30,600
about this thing will motivate

4970
02:40:30,600 --> 02:40:32,300
other people to take action

4971
02:40:32,366 --> 02:40:34,000
according to your preferences

4972
02:40:34,133 --> 02:40:35,533
so from a selling perspective

4973
02:40:35,533 --> 02:40:36,733
you wanna talk to the lead

4974
02:40:36,733 --> 02:40:37,866
as though you already know

4975
02:40:37,866 --> 02:40:38,866
they're gonna make this offer

4976
02:40:38,866 --> 02:40:40,266
like they are gonna take the premium offer

4977
02:40:40,266 --> 02:40:40,866
you be like

4978
02:40:40,866 --> 02:40:43,766
it's almost in a like this is such a no brainer

4979
02:40:43,766 --> 02:40:45,533
anybody who doesn't take this offer

4980
02:40:45,533 --> 02:40:48,133
like I don't even understand the people like almost

4981
02:40:48,133 --> 02:40:49,800
and this is where like if you're a salesman

4982
02:40:49,800 --> 02:40:51,400
especially if you work for a business

4983
02:40:51,500 --> 02:40:51,900
you're gonna be like

4984
02:40:51,900 --> 02:40:53,700
I don't even know why we offer this other thing

4985
02:40:53,700 --> 02:40:54,733
like you can do it if you want

4986
02:40:54,733 --> 02:40:55,400
but like

4987
02:40:55,400 --> 02:40:56,933
this is where everyone gets all the great results

4988
02:40:56,933 --> 02:40:59,366
and even how I'm saying this is very matter of fact

4989
02:40:59,533 --> 02:41:02,666
very like like I

4990
02:41:02,766 --> 02:41:03,166
it

4991
02:41:03,166 --> 02:41:05,133
it makes no sense to me why someone would select that

4992
02:41:05,133 --> 02:41:06,766
and people will take all the subconscious cues

4993
02:41:06,766 --> 02:41:08,200
in your body language and your tone

4994
02:41:08,200 --> 02:41:10,166
of which thing they should pick

4995
02:41:10,333 --> 02:41:11,566
so for example if I said you don't want this

4996
02:41:11,566 --> 02:41:14,333
do you there that's a guaranteed no

4997
02:41:14,333 --> 02:41:16,500
I'm I'm asking them to say no to something

4998
02:41:16,700 --> 02:41:18,300
that's what I'm saying and so

4999
02:41:18,300 --> 02:41:19,800
how you present the offers

5000
02:41:19,800 --> 02:41:21,700
is obviously based on your ability to sell

5001
02:41:21,700 --> 02:41:22,700
but I'm trying to give you

5002
02:41:22,700 --> 02:41:25,100
stack the deck in your favor to make this easy for you

5003
02:41:25,266 --> 02:41:26,733
so you will operate from the position of

5004
02:41:26,733 --> 02:41:28,066
this is what everyone does

5005
02:41:28,066 --> 02:41:29,466
this is just a formality

5006
02:41:29,500 --> 02:41:31,266
let me get your ID and credit card

5007
02:41:31,266 --> 02:41:32,366
so you can get your value

5008
02:41:32,366 --> 02:41:33,766
no hype just friendly disposition

5009
02:41:33,766 --> 02:41:37,133
almost bored about how regularly you have to do this

5010
02:41:37,133 --> 02:41:39,366
it's like yup so we've got this thing

5011
02:41:39,366 --> 02:41:40,533
not really sure why people do that

5012
02:41:40,533 --> 02:41:42,366
but this is the main thing great

5013
02:41:42,366 --> 02:41:43,166
do you have your card on you

5014
02:41:43,166 --> 02:41:43,866
do you have your ID on you

5015
02:41:43,866 --> 02:41:45,400
and then you just move right to it

5016
02:41:45,533 --> 02:41:46,100
surprise benefit

5017
02:41:46,100 --> 02:41:48,133
that's optional to take this a step further

5018
02:41:48,133 --> 02:41:50,466
if someone takes the decoy option

5019
02:41:50,500 --> 02:41:52,466
you can choose to surprise them with a few

5020
02:41:52,466 --> 02:41:53,666
zero or low cost features

5021
02:41:53,666 --> 02:41:55,200
from the premium offer just say hey

5022
02:41:55,200 --> 02:41:56,000
I'm gonna throw this in

5023
02:41:56,000 --> 02:41:57,666
even though it's part of our premium offer

5024
02:41:57,700 --> 02:41:59,400
just because I want you to get great results

5025
02:41:59,400 --> 02:42:00,400
this also builds goodwill

5026
02:42:00,400 --> 02:42:02,600
it also reinforces that you are being truthful

5027
02:42:02,600 --> 02:42:02,933
about saying

5028
02:42:02,933 --> 02:42:05,266
I really do think this other thing is better for you

5029
02:42:05,366 --> 02:42:07,000
and that you do want to actually help them

5030
02:42:07,000 --> 02:42:10,166
so it's aligned with the scripting in the sale right

5031
02:42:10,166 --> 02:42:11,800
so this builds goodwill it overdelivers

5032
02:42:11,866 --> 02:42:13,600
and it increases the chance

5033
02:42:13,700 --> 02:42:15,466
that they take your upsell offer later

5034
02:42:15,466 --> 02:42:15,966
remember

5035
02:42:15,966 --> 02:42:17,866
they're still a lead and if they bought the Dequa

5036
02:42:17,866 --> 02:42:19,366
if it's a free thing that they haven't bought yet

5037
02:42:19,366 --> 02:42:21,300
if it's not a free thing they paid

5038
02:42:21,300 --> 02:42:22,433
they're still a customer

5039
02:42:22,666 --> 02:42:25,400
and if you've followed any of my stuff

5040
02:42:25,400 --> 02:42:26,500
you absolutely should still up

5041
02:42:26,500 --> 02:42:27,400
sell them halfway through

5042
02:42:27,400 --> 02:42:28,600
whatever this thing is

5043
02:42:28,866 --> 02:42:30,800
and if you give them some stuff now that's good

5044
02:42:30,800 --> 02:42:32,466
they will probably increase the likelihood

5045
02:42:32,466 --> 02:42:33,600
that they will take more of your stuff

5046
02:42:33,600 --> 02:42:35,800
that's good later so in summary

5047
02:42:35,800 --> 02:42:38,400
decoy offers advertise something for free or discounted

5048
02:42:38,400 --> 02:42:39,700
then when the leads ask to learn more

5049
02:42:39,700 --> 02:42:41,700
you also present a more valuable premium offer

5050
02:42:41,700 --> 02:42:42,566
make the premium offer

5051
02:42:42,566 --> 02:42:44,600
far more valuable than the decoy option

5052
02:42:44,600 --> 02:42:47,100
by adding more features benefits and guarantees

5053
02:42:47,500 --> 02:42:49,600
strip down your decoy your main offer

5054
02:42:49,600 --> 02:42:51,666
to your decoy offer as much as is reasonable

5055
02:42:51,866 --> 02:42:53,533
when leads ask about the decoy offer

5056
02:42:53,533 --> 02:42:56,200
present your premium offer right next to it alright

5057
02:42:56,200 --> 02:42:57,700
ask if they're here for free stuff

5058
02:42:57,700 --> 02:42:59,000
or laughing results to get

5059
02:42:59,000 --> 02:43:00,666
permission to put the premium offer first

5060
02:43:00,666 --> 02:43:01,900
if you still don't want that

5061
02:43:01,900 --> 02:43:04,666
then you put the decoy offer and then kind of like

5062
02:43:04,733 --> 02:43:06,000
like I mean you can do that

5063
02:43:06,000 --> 02:43:08,766
but this is what people get the best results on

5064
02:43:08,766 --> 02:43:09,700
and you can still make money

5065
02:43:09,700 --> 02:43:11,333
from the leads who pick the decoy option

5066
02:43:11,333 --> 02:43:12,866
you'll just learn the best way to deliver your decoy

5067
02:43:12,866 --> 02:43:15,033
product and maximize upsells from it

5068
02:43:15,066 --> 02:43:16,466
expect to make money fast

5069
02:43:16,466 --> 02:43:17,333
if you're not

5070
02:43:17,333 --> 02:43:20,200
then make the contrast between the offers bigger

5071
02:43:21,800 --> 02:43:23,400
by the way if you're a company

5072
02:43:23,400 --> 02:43:24,733
doing over $1 million more in profit

5073
02:43:24,733 --> 02:43:27,800
and want us to invest as a partner to help you scale

5074
02:43:27,800 --> 02:43:31,466
you can go to acquisition.com and hit the sell button

5075
02:43:31,466 --> 02:43:32,533
if you just want help scaling

5076
02:43:32,533 --> 02:43:33,566
you can hit the scale button

5077
02:43:33,566 --> 02:43:34,700
if you don't have a business

5078
02:43:34,766 --> 02:43:36,900
hit the start a business one

5079
02:43:36,900 --> 02:43:39,166
which I'll just tell you will route you to school.com

5080
02:43:39,566 --> 02:43:42,266
so that concludes the decoy offers

5081
02:43:42,300 --> 02:43:44,366
let's get to buy X get y free

5082
02:43:46,500 --> 02:43:48,866
so we just covered win your money back free giveaways

5083
02:43:48,866 --> 02:43:50,133
and now decoy offers

5084
02:43:50,133 --> 02:43:51,333
and one thing that I will highlight

5085
02:43:51,333 --> 02:43:52,300
before we get into Buy X

5086
02:43:52,300 --> 02:43:55,966
get y free is that an ethical salesman

5087
02:43:56,300 --> 02:43:57,166
makes recommendations

5088
02:43:57,166 --> 02:43:58,366
that he believes will help the customer

5089
02:43:58,366 --> 02:44:00,700
and help the business and unethical salesman

5090
02:44:00,733 --> 02:44:02,000
makes recommendations to customers

5091
02:44:02,000 --> 02:44:03,100
that will not help the customer

5092
02:44:03,100 --> 02:44:04,300
and only helps the business

5093
02:44:04,333 --> 02:44:05,000
and so you

5094
02:44:05,000 --> 02:44:07,600
making more offers to customers in no way unethical

5095
02:44:07,600 --> 02:44:10,633
it is unethical basically if you lie

5096
02:44:10,733 --> 02:44:12,133
and so you're either lying to them

5097
02:44:12,133 --> 02:44:13,566
about them being qualified for something

5098
02:44:13,566 --> 02:44:15,566
or you're lying to them about the quality of the thing

5099
02:44:15,566 --> 02:44:17,133
that it will get delivered to them

5100
02:44:17,133 --> 02:44:18,066
either way

5101
02:44:18,066 --> 02:44:21,400
fundamentally bad salesmanship is rooted in deception

5102
02:44:21,566 --> 02:44:23,900
good salesmanship is rooted in education

5103
02:44:24,133 --> 02:44:25,666
and if the education is true

5104
02:44:25,666 --> 02:44:26,533
which it should be

5105
02:44:26,533 --> 02:44:29,300
then the customer should just find out as much about

5106
02:44:29,300 --> 02:44:30,766
what they need to do to make a decision as

5107
02:44:30,766 --> 02:44:32,333
you know and so fundamentally

5108
02:44:32,333 --> 02:44:34,066
if you were a customer

5109
02:44:34,066 --> 02:44:35,166
and you were selling your mother

5110
02:44:35,166 --> 02:44:36,966
and she had as much information as you

5111
02:44:36,966 --> 02:44:38,966
then she should buy the same things

5112
02:44:38,966 --> 02:44:40,400
you would recommend to her

5113
02:44:40,533 --> 02:44:42,966
with that being said buy X get y free

5114
02:44:42,966 --> 02:44:43,900
let's rock and roll

5115
02:44:43,933 --> 02:44:48,100
so buy X get y free super super common offer

5116
02:44:48,133 --> 02:44:49,700
there's a lot of different ways to do it

5117
02:44:49,700 --> 02:44:52,266
and there's like very advanced tactics

5118
02:44:52,300 --> 02:44:55,400
which is why I love this offer so much like this thing

5119
02:44:55,400 --> 02:44:56,900
it's funny because I like the first three

5120
02:44:56,900 --> 02:44:58,766
and I also love this offer too

5121
02:44:58,766 --> 02:45:01,766
like it's a banger so we'll cover the main 5

5122
02:45:01,766 --> 02:45:04,933
here's how I Learned it so I was in downtown Nashville

5123
02:45:04,933 --> 02:45:07,300
I went to school in Nashville college called Vanderbilt

5124
02:45:07,466 --> 02:45:08,766
and I remember when I

5125
02:45:08,766 --> 02:45:11,400
when I got to Vanderbilt for the first time um

5126
02:45:11,400 --> 02:45:13,933
I remember going downtown and there was this uh

5127
02:45:13,933 --> 02:45:15,100
thing called Boot Factory

5128
02:45:15,166 --> 02:45:19,466
and Boot Factory had this massive boot that was bigger

5129
02:45:19,466 --> 02:45:20,000
than a car

5130
02:45:20,000 --> 02:45:23,033
big flashing like almost like Vegas lights and uh

5131
02:45:23,200 --> 02:45:29,100
on all the windows it said buy one pair get two free

5132
02:45:29,600 --> 02:45:33,500
and I was like this business

5133
02:45:33,533 --> 02:45:34,566
these guys are idiots

5134
02:45:34,566 --> 02:45:37,366
like they're just giving away their boots and I being

5135
02:45:37,366 --> 02:45:37,566
you know

5136
02:45:37,566 --> 02:45:39,600
like of course fresh to college out of high school

5137
02:45:39,600 --> 02:45:41,466
knowing literally nothing about anything

5138
02:45:41,633 --> 02:45:43,866
I assumed that I was more intelligent than the store

5139
02:45:43,866 --> 02:45:45,800
owner who obviously was doing very well

5140
02:45:45,800 --> 02:45:46,866
and so uh

5141
02:45:46,866 --> 02:45:50,066
I came back 10 years later and they had expanded

5142
02:45:50,200 --> 02:45:51,866
and so I was like huh

5143
02:45:51,866 --> 02:45:53,133
that's interesting now 10 years later

5144
02:45:53,133 --> 02:45:54,466
I had a lot more business acumen

5145
02:45:54,500 --> 02:45:57,600
and so I went in and I like looked around

5146
02:45:57,600 --> 02:46:02,166
poked around and I saw that the pairs of boots had

5147
02:46:02,166 --> 02:46:05,633
each of them had multiple markdowns on the price

5148
02:46:05,800 --> 02:46:07,800
down to $600 for one pair

5149
02:46:07,800 --> 02:46:09,366
at least the ones that I looked at

5150
02:46:09,633 --> 02:46:13,266
and so it was instead of saying buy one

5151
02:46:13,266 --> 02:46:16,100
fairly priced boots or buy 20% off

5152
02:46:16,133 --> 02:46:17,933
they had buy one get two free

5153
02:46:17,933 --> 02:46:20,933
but if you bought three pairs of boots for $200 each

5154
02:46:20,933 --> 02:46:21,366
that's still

5155
02:46:21,366 --> 02:46:24,000
like a pretty normal price for leather boots

5156
02:46:24,266 --> 02:46:25,466
and so the ones that I like

5157
02:46:25,466 --> 02:46:27,300
the ones I was looking at were not like stingray or

5158
02:46:27,300 --> 02:46:29,200
you know hippopotamus or something like they were

5159
02:46:29,200 --> 02:46:31,466
they were normal leather and so

5160
02:46:31,466 --> 02:46:33,766
I realized that they had just fully

5161
02:46:33,766 --> 02:46:36,466
baked the cost of three into one pair

5162
02:46:36,533 --> 02:46:37,766
and then said buy one

5163
02:46:37,766 --> 02:46:39,766
get two free and the thing is

5164
02:46:39,766 --> 02:46:41,000
is that because of that

5165
02:46:41,000 --> 02:46:43,000
all the bachelor parties would pile in

5166
02:46:43,000 --> 02:46:44,533
because the bride would get one

5167
02:46:44,533 --> 02:46:46,500
and then the other two friends would get them for free

5168
02:46:46,500 --> 02:46:48,533
or one of the friends would buy a pair

5169
02:46:48,533 --> 02:46:49,533
and give one to the bride

5170
02:46:49,533 --> 02:46:50,533
and one to her maid of honor

5171
02:46:50,533 --> 02:46:53,133
or whatever and they just milked it

5172
02:46:53,133 --> 02:46:53,800
and so

5173
02:46:53,800 --> 02:46:57,900
that is how I Learned this more valuable way of doing

5174
02:46:57,900 --> 02:47:00,500
buy X get y free so let's get into it

5175
02:47:00,500 --> 02:47:03,266
so in buy X get y free offers customers buy something

5176
02:47:03,266 --> 02:47:04,966
they get other stuff free cool

5177
02:47:04,966 --> 02:47:05,866
makes sense

5178
02:47:05,866 --> 02:47:08,166
the more free stuff they get and the higher its value

5179
02:47:08,166 --> 02:47:09,933
the better it works buy 1

5180
02:47:09,933 --> 02:47:11,400
get 2 free works better than buy 2

5181
02:47:11,400 --> 02:47:12,966
get one free free offers

5182
02:47:12,966 --> 02:47:14,700
get way more attention than discount offers

5183
02:47:14,700 --> 02:47:15,733
but if you only have one thing to sell

5184
02:47:15,733 --> 02:47:16,300
and give it away

5185
02:47:16,300 --> 02:47:19,033
then obviously you go hungry if you just say like bye

5186
02:47:19,100 --> 02:47:21,200
here's free boots that's not gonna work right

5187
02:47:21,266 --> 02:47:23,200
so in situations like this

5188
02:47:23,200 --> 02:47:24,933
they tend to lean on discounts alright

5189
02:47:24,933 --> 02:47:25,733
most businesses do

5190
02:47:25,733 --> 02:47:27,533
so they run sales relying on holidays

5191
02:47:27,533 --> 02:47:30,066
seasonal changes or whatever as you know

5192
02:47:30,066 --> 02:47:32,700
reasons to temporarily lower the price for whatever

5193
02:47:32,700 --> 02:47:34,166
the thing is to get more customers

5194
02:47:34,466 --> 02:47:36,700
but by selling more than one thing at once

5195
02:47:36,700 --> 02:47:38,866
you can turn discount offers into even stronger

5196
02:47:38,866 --> 02:47:41,666
free offers this is the magic of buy X

5197
02:47:41,666 --> 02:47:44,866
get y free it will take a 33% discount

5198
02:47:44,866 --> 02:47:46,600
and it can make it into buy two

5199
02:47:46,600 --> 02:47:48,933
get one free which is far more compelling

5200
02:47:48,933 --> 02:47:51,500
and rather than getting two thirds of one ticket

5201
02:47:51,500 --> 02:47:54,033
you still get someone to buy two full priced items

5202
02:47:54,100 --> 02:47:56,566
but you still effectively gave them a 1/3 discount

5203
02:47:56,566 --> 02:47:58,000
which you would never advertise

5204
02:47:58,000 --> 02:47:59,366
because why would you advertise that

5205
02:47:59,366 --> 02:48:00,333
when you can buy two get one free

5206
02:48:00,333 --> 02:48:01,966
it's more strong alright

5207
02:48:01,966 --> 02:48:04,066
so I'm gonna give you a lot of different ways to slice

5208
02:48:04,066 --> 02:48:05,533
this cause this is what I wanna help you

5209
02:48:05,533 --> 02:48:06,800
match this to your business

5210
02:48:06,900 --> 02:48:09,100
so when you have more than one item

5211
02:48:09,200 --> 02:48:11,533
you can make the discount value large enough

5212
02:48:11,533 --> 02:48:13,133
that it covers the price of more stuff

5213
02:48:13,133 --> 02:48:17,366
for example I could sell three t shirts for $30 right

5214
02:48:17,366 --> 02:48:18,666
so $10 each

5215
02:48:19,133 --> 02:48:24,200
or I could sell one T-shirt for 30 and get two free

5216
02:48:24,333 --> 02:48:25,600
in both situations

5217
02:48:25,600 --> 02:48:28,066
I give away three shirts and get $30

5218
02:48:28,100 --> 02:48:30,200
but the perception think about the difference here

5219
02:48:30,200 --> 02:48:33,866
if I said hey buy three shirts for $10 each

5220
02:48:33,866 --> 02:48:36,000
how compelling is that not that compelling

5221
02:48:36,000 --> 02:48:38,666
if I said buy one shirt get 2 free

5222
02:48:38,666 --> 02:48:40,700
I'm gonna for sure get way more attention

5223
02:48:40,700 --> 02:48:44,266
but the economics are the same powerful

5224
02:48:44,733 --> 02:48:46,233
now I'm gonna give you another example

5225
02:48:46,666 --> 02:48:48,366
now if I wanted to offer a discount

5226
02:48:48,366 --> 02:48:50,066
rather than only reframe the price

5227
02:48:50,066 --> 02:48:52,533
so the example here I just reframed the price

5228
02:48:52,533 --> 02:48:54,566
I'm still getting the same $10 per shirt

5229
02:48:54,666 --> 02:48:55,500
zero discount here I

5230
02:48:55,500 --> 02:48:58,900
just re reframed how I'm how I'm pricing my offer

5231
02:49:00,000 --> 02:49:03,566
if I wanted to also use this plus a discount

5232
02:49:03,566 --> 02:49:05,233
I could sell three shirts

5233
02:49:05,600 --> 02:49:07,566
for six dollars and sixty seven cents

5234
02:49:07,566 --> 02:49:09,133
so it's like buy three shirts for $20

5235
02:49:09,133 --> 02:49:10,766
that would be the discount version

5236
02:49:10,766 --> 02:49:12,366
or I could now say

5237
02:49:12,766 --> 02:49:15,400
buy one shirt for 20 and get two free

5238
02:49:15,400 --> 02:49:18,766
same thing it's still effectively a uh uh uh

5239
02:49:19,300 --> 02:49:22,066
a 1/3 discount but it accomplishes the same objective

5240
02:49:22,400 --> 02:49:24,366
okay so those are two examples I'm sorry

5241
02:49:24,366 --> 02:49:25,333
those that's the description

5242
02:49:25,333 --> 02:49:27,266
now I have more examples for you alright

5243
02:49:27,266 --> 02:49:29,933
so buy one get two physical products offers

5244
02:49:29,933 --> 02:49:30,766
this is the Boot Factory offer

5245
02:49:30,766 --> 02:49:32,966
one pair is 200 dollars buy X y free

5246
02:49:33,166 --> 02:49:35,266
buy one pair for 600 get two pairs free

5247
02:49:35,266 --> 02:49:35,766
so the end

5248
02:49:35,766 --> 02:49:37,900
result is to still buy 3 pairs of 200 dollar boots

5249
02:49:38,300 --> 02:49:39,100
alright now

5250
02:49:39,100 --> 02:49:40,800
here's three versions of this

5251
02:49:40,800 --> 02:49:41,900
that I want to break down for you

5252
02:49:41,900 --> 02:49:43,700
to show you the power of this

5253
02:49:43,966 --> 02:49:45,766
so if you said buy 12 months

5254
02:49:45,766 --> 02:49:48,866
get six months free for 818 hundred dollars okay

5255
02:49:48,866 --> 02:49:49,366
that's an offer

5256
02:49:49,366 --> 02:49:51,166
and a lot of people might take that like that's a

5257
02:49:51,166 --> 02:49:52,400
that's a that's a good offer

5258
02:49:52,766 --> 02:49:54,700
a better offer would be buy nine months

5259
02:49:54,700 --> 02:49:56,000
get nine months free

5260
02:49:56,900 --> 02:50:00,766
still 18 dollars a crazy offer would be buy 6 months

5261
02:50:00,766 --> 02:50:02,633
get 12 months free for 18 dollars

5262
02:50:02,900 --> 02:50:04,333
in all three situations

5263
02:50:04,333 --> 02:50:06,866
they get 18 18 months for 18 dollars

5264
02:50:06,900 --> 02:50:08,800
that's what it works everyone pays

5265
02:50:08,800 --> 02:50:10,333
the same price for the same amount of service

5266
02:50:10,333 --> 02:50:12,566
but the third option will be the most compelling

5267
02:50:12,800 --> 02:50:15,033
because it has the most free stuff

5268
02:50:15,133 --> 02:50:16,900
so important points

5269
02:50:17,866 --> 02:50:19,000
buy X get y free

5270
02:50:19,000 --> 02:50:21,866
gets people to buy more stuff and provides more value

5271
02:50:21,866 --> 02:50:24,333
so it used to take a whole year for some of my service

5272
02:50:24,333 --> 02:50:25,566
businesses to make the money

5273
02:50:25,566 --> 02:50:27,100
to cash flow the acquisition

5274
02:50:27,266 --> 02:50:29,366
but if you do buy six get six

5275
02:50:29,366 --> 02:50:30,300
for example

5276
02:50:30,300 --> 02:50:32,800
on the front end to attract customers or as a hey

5277
02:50:32,800 --> 02:50:34,300
it's our grand opening buy six months

5278
02:50:34,300 --> 02:50:36,800
get six months you can attract a boatload of customers

5279
02:50:36,800 --> 02:50:39,100
and get 6 months prepayments from all of them

5280
02:50:39,100 --> 02:50:40,766
at full price now

5281
02:50:40,766 --> 02:50:43,300
guess what happens if I have a full price

5282
02:50:43,300 --> 02:50:45,300
or even a higher than full price thing

5283
02:50:45,300 --> 02:50:46,100
that I add some little

5284
02:50:46,100 --> 02:50:48,800
tiny differentiator during my grand opening special

5285
02:50:48,800 --> 02:50:51,066
which allows me to say that this service was

5286
02:50:51,166 --> 02:50:53,766
higher than what I would then normally offer later

5287
02:50:53,766 --> 02:50:56,100
then it justifies me having an even higher price

5288
02:50:56,100 --> 02:50:57,566
so when I say buy six get six

5289
02:50:57,566 --> 02:50:58,900
I might just get prepayments

5290
02:50:58,933 --> 02:51:01,100
at basically the full price for the year

5291
02:51:01,366 --> 02:51:02,966
because I added this extra wrinkle in

5292
02:51:02,966 --> 02:51:04,466
that's very high margin for me

5293
02:51:04,500 --> 02:51:07,266
so for a gym I might say you get text access to me

5294
02:51:07,266 --> 02:51:07,866
which by the way

5295
02:51:07,866 --> 02:51:10,466
I probably would give all my first customers anyways

5296
02:51:10,466 --> 02:51:12,366
I just wouldn't promise that in the sale

5297
02:51:12,366 --> 02:51:14,233
I might for a grand opening

5298
02:51:14,266 --> 02:51:15,966
so raise prices

5299
02:51:15,966 --> 02:51:18,366
for giving stuff away to preserve profits obviously

5300
02:51:18,366 --> 02:51:21,366
if you can only afford a certain amount of margin

5301
02:51:21,366 --> 02:51:22,333
then don't give away your margin

5302
02:51:22,333 --> 02:51:24,100
that's just like my big obvious disclaimer

5303
02:51:24,300 --> 02:51:25,333
now by X y

5304
02:51:25,333 --> 02:51:25,966
free works better

5305
02:51:25,966 --> 02:51:28,066
if you have more free stuff than paid stuff alright

5306
02:51:28,066 --> 02:51:31,366
so give away give more free than you ask people to buy

5307
02:51:31,400 --> 02:51:32,600
just play with the pricing

5308
02:51:32,600 --> 02:51:33,766
until it makes sense for you

5309
02:51:33,766 --> 02:51:36,600
so buy one get two instead of buy two to get one

5310
02:51:36,600 --> 02:51:38,433
so these are the same economics

5311
02:51:39,300 --> 02:51:44,033
but this one's stronger that's how it works OK

5312
02:51:44,166 --> 02:51:44,800
now

5313
02:51:44,800 --> 02:51:46,966
the free things can be different from the paid things

5314
02:51:46,966 --> 02:51:48,600
so this is key so

5315
02:51:48,600 --> 02:51:50,000
you just wanna make sure that the free

5316
02:51:50,000 --> 02:51:51,900
stuff still makes the offer compelling

5317
02:51:51,966 --> 02:51:54,800
let's say that uh socks have a 10 dollar value

5318
02:51:54,800 --> 02:51:56,800
if they buy one shirt for 10 bucks

5319
02:51:56,800 --> 02:51:58,666
but get 20 dollars of free socks

5320
02:51:58,700 --> 02:52:02,933
it may seem like a better deal now alternatively here

5321
02:52:02,933 --> 02:52:04,533
if we're looking at like buy one

5322
02:52:04,533 --> 02:52:05,866
let's say shirts are 20 bucks

5323
02:52:05,966 --> 02:52:07,466
if I say buy one shirt for 20

5324
02:52:07,466 --> 02:52:09,000
and get another shirt free

5325
02:52:09,200 --> 02:52:11,866
that may seem like less valuable than buy one shirt

5326
02:52:11,866 --> 02:52:13,700
get two pairs of socks free

5327
02:52:13,700 --> 02:52:15,533
because what someone's gonna translate it into is

5328
02:52:15,533 --> 02:52:19,066
buy one thing get two things free versus buy one thing

5329
02:52:19,066 --> 02:52:20,300
get one thing free

5330
02:52:20,366 --> 02:52:23,800
now this is a testable proposition in some some offers

5331
02:52:23,800 --> 02:52:26,900
two pairs of socks may convert better than one shirt

5332
02:52:26,900 --> 02:52:29,166
depending on if the way that that buyer buys

5333
02:52:29,166 --> 02:52:31,766
the next logical thing they would need would be socks

5334
02:52:32,333 --> 02:52:34,400
so more free

5335
02:52:34,400 --> 02:52:36,300
cheaper things can work better than fewer free

5336
02:52:36,300 --> 02:52:38,233
expensive things okay

5337
02:52:38,266 --> 02:52:38,933
so let's say

5338
02:52:38,933 --> 02:52:41,666
I could only afford to give one shirt away for free

5339
02:52:41,666 --> 02:52:43,100
but now the same for the same cost

5340
02:52:43,100 --> 02:52:44,666
I give 3 pairs of socks

5341
02:52:44,766 --> 02:52:46,533
I would probably test buy one shirt

5342
02:52:46,533 --> 02:52:50,800
get 1 shirt versus buy one shirt get 3 socks for free

5343
02:52:50,866 --> 02:52:53,666
and even though the socks cost less than a shirt

5344
02:52:53,666 --> 02:52:55,000
it's still buy one get three

5345
02:52:55,000 --> 02:52:56,766
and sometimes that converts better

5346
02:52:56,766 --> 02:52:59,533
so I test this rather than offer a 33% discount

5347
02:52:59,533 --> 02:53:01,600
try buy one get two free

5348
02:53:02,066 --> 02:53:05,166
this here will convert more than this

5349
02:53:05,166 --> 02:53:07,866
but they're still 1/3 off

5350
02:53:08,066 --> 02:53:10,000
alright so I just like to

5351
02:53:10,000 --> 02:53:11,266
if you are going to use a discount

5352
02:53:11,266 --> 02:53:12,133
this structure

5353
02:53:12,133 --> 02:53:14,233
still makes a discount even more compelling

5354
02:53:14,300 --> 02:53:16,566
do not make offers like this if you cannot manage money

5355
02:53:16,566 --> 02:53:18,200
especially with service businesses

5356
02:53:18,200 --> 02:53:20,700
so if you say buy 6 months of service get 6 months free

5357
02:53:20,733 --> 02:53:22,200
if you don't know how to manage money

5358
02:53:22,200 --> 02:53:24,200
and you immediately blow the money that they prepaid

5359
02:53:24,533 --> 02:53:25,900
you're a bad business owner

5360
02:53:25,966 --> 02:53:28,266
so you need to be able to consistently

5361
02:53:28,266 --> 02:53:29,666
like if you have to have an accountant

5362
02:53:29,666 --> 02:53:30,733
you know do this for you

5363
02:53:30,733 --> 02:53:32,500
put all the cash into one bank account

5364
02:53:32,500 --> 02:53:33,300
and you can pay yourself

5365
02:53:33,300 --> 02:53:34,400
out of that bank account every month

5366
02:53:34,400 --> 02:53:37,000
as you deliver services but the worst thing

5367
02:53:37,000 --> 02:53:38,900
you can possibly do for your reputation is like presale

5368
02:53:38,900 --> 02:53:40,966
a year of service and then

5369
02:53:41,133 --> 02:53:42,100
you know like

5370
02:53:42,100 --> 02:53:43,866
do not do this play

5371
02:53:43,866 --> 02:53:46,900
if you are trying to keep your business alive

5372
02:53:47,166 --> 02:53:48,300
if you need this cash

5373
02:53:48,300 --> 02:53:49,833
in order to keep the business alive

5374
02:53:49,933 --> 02:53:52,300
I think you risk your reputation by doing it

5375
02:53:52,800 --> 02:53:56,766
I also cap this at 10% of a recurring customer base

5376
02:53:56,766 --> 02:53:58,600
for those who have recurring revenue businesses

5377
02:53:58,600 --> 02:54:01,300
so if you want to do a banger buy X get y free

5378
02:54:01,300 --> 02:54:03,066
which is a really great cash play

5379
02:54:03,066 --> 02:54:04,700
let's say you have 100 recurring customers

5380
02:54:04,733 --> 02:54:05,766
cap it at 10

5381
02:54:05,766 --> 02:54:07,733
don't let more than 10 of your recurring customers

5382
02:54:07,733 --> 02:54:09,066
prepay for the year

5383
02:54:09,066 --> 02:54:10,266
cause you still like how I

5384
02:54:10,266 --> 02:54:12,500
this is a not a math solution

5385
02:54:12,500 --> 02:54:14,100
this is a psychological solution

5386
02:54:14,100 --> 02:54:16,266
I've just seen way more businesses succeed

5387
02:54:16,366 --> 02:54:18,366
by keeping their recurring cash flow

5388
02:54:18,366 --> 02:54:20,666
because most business owners honestly can't manage it

5389
02:54:20,666 --> 02:54:22,000
now mathematically

5390
02:54:22,000 --> 02:54:23,833
it makes sense to get everybody on annual

5391
02:54:24,100 --> 02:54:26,866
but a lot of people can't handle that responsibility

5392
02:54:26,866 --> 02:54:28,566
I'm just being really honest with you okay

5393
02:54:29,300 --> 02:54:31,633
so this is a great grand opening strategy

5394
02:54:31,900 --> 02:54:33,733
as I reference earlier um

5395
02:54:33,733 --> 02:54:36,700
this is also a great offer to give for fast cash

5396
02:54:36,700 --> 02:54:38,566
now if your business is healthy

5397
02:54:38,566 --> 02:54:39,066
but you're like

5398
02:54:39,066 --> 02:54:40,600
you know what I want to buy a bunch of equipment

5399
02:54:41,366 --> 02:54:44,733
great prepay 10 people go buy your equipment

5400
02:54:44,733 --> 02:54:46,966
or you need to go buy a another big oven

5401
02:54:46,966 --> 02:54:48,400
industrial oven for your baking business

5402
02:54:48,400 --> 02:54:50,600
like totally makes sense for you to do prepayments

5403
02:54:50,600 --> 02:54:52,566
and things like that to cash flow fund

5404
02:54:52,566 --> 02:54:53,966
rather than take on credit lines

5405
02:54:54,333 --> 02:54:55,200
super smart

5406
02:54:55,933 --> 02:54:57,933
um so even if customers prepay

5407
02:54:57,933 --> 02:54:59,500
you can still upsell them different stuff now

5408
02:54:59,500 --> 02:55:00,566
so this is really important

5409
02:55:00,800 --> 02:55:03,866
so I made this mistake which is why I share it with you

5410
02:55:04,166 --> 02:55:05,566
the people who prepay

5411
02:55:05,566 --> 02:55:07,966
especially for services for durations of time

5412
02:55:07,966 --> 02:55:09,766
business owners have this fear of selling them

5413
02:55:09,766 --> 02:55:11,300
or making offers for other stuff

5414
02:55:11,366 --> 02:55:13,466
but here's the craziest thing that we saw

5415
02:55:13,500 --> 02:55:15,466
is that the people who prepay for the year

5416
02:55:15,466 --> 02:55:18,833
are the most likely people to buy more stuff afterwards

5417
02:55:18,900 --> 02:55:19,966
and so these are basically

5418
02:55:19,966 --> 02:55:22,266
a way of identifying your hyper buyers

5419
02:55:22,500 --> 02:55:24,966
and so they self select they prepay for a year

5420
02:55:24,966 --> 02:55:26,166
and guess what happens after that

5421
02:55:26,166 --> 02:55:27,466
when I would have big booty

5422
02:55:27,466 --> 02:55:30,100
boot camp and a deadlift seminar or

5423
02:55:30,100 --> 02:55:30,900
you know um

5424
02:55:31,400 --> 02:55:33,900
make your sexy back or I would do buns and guns

5425
02:55:33,900 --> 02:55:34,733
or whatever else I would do

5426
02:55:34,733 --> 02:55:35,766
lean by Halloween

5427
02:55:35,800 --> 02:55:38,066
they were the most likely people to pay

5428
02:55:38,066 --> 02:55:38,966
cause guess what

5429
02:55:38,966 --> 02:55:40,566
they weren't paying anything for being there

5430
02:55:40,566 --> 02:55:42,566
as far as they felt they

5431
02:55:42,566 --> 02:55:44,666
they had paid so long ago they forgot that they paid

5432
02:55:44,666 --> 02:55:46,500
so it felt like I was just a free gym

5433
02:55:46,500 --> 02:55:48,266
and you know what the cool thing about wallets

5434
02:55:48,266 --> 02:55:49,166
with people who make money

5435
02:55:49,166 --> 02:55:52,000
they replenish and then you can ask again

5436
02:55:52,300 --> 02:55:53,866
so if customers only buy once

5437
02:55:54,166 --> 02:55:56,566
this is just a disclaimer for the um

5438
02:55:56,900 --> 02:55:58,000
for the boot business

5439
02:55:58,300 --> 02:56:00,133
the reason they structured their deal that way

5440
02:56:00,133 --> 02:56:01,933
was to maximize the transaction

5441
02:56:01,933 --> 02:56:04,433
so if you're in a business where people only buy once

5442
02:56:04,500 --> 02:56:05,900
then it makes sense to structure

5443
02:56:05,966 --> 02:56:07,566
as much into that first sale

5444
02:56:07,566 --> 02:56:09,133
as you can'cause you're only gonna get one shot

5445
02:56:09,133 --> 02:56:10,200
like the bachelor

5446
02:56:10,200 --> 02:56:12,366
parties are probably not coming back to Nashville now

5447
02:56:12,366 --> 02:56:16,266
maybe they will but for the most part that's this

5448
02:56:16,266 --> 02:56:18,133
you wanna make the big the ask as big as you can

5449
02:56:18,133 --> 02:56:19,200
if you're only gonna get one shot

5450
02:56:19,300 --> 02:56:21,333
summarizing by X y free in by X

5451
02:56:21,333 --> 02:56:22,966
y free customers buy something

5452
02:56:22,966 --> 02:56:24,600
they get other stuff for free by X

5453
02:56:24,600 --> 02:56:27,666
y free works for stuff that makes sense to buy more of

5454
02:56:27,666 --> 02:56:30,466
or get longer access to basic by X

5455
02:56:30,466 --> 02:56:32,400
y free offer is reframe pricing

5456
02:56:32,400 --> 02:56:34,933
buy 1 get 2 free cost the same as buying 3

5457
02:56:34,933 --> 02:56:37,966
except customers see the free offer as more valuable

5458
02:56:38,300 --> 02:56:40,300
remember the 18 month service example I gave

5459
02:56:40,333 --> 02:56:40,666
so

5460
02:56:40,666 --> 02:56:42,900
always try to give more free things than paid things

5461
02:56:42,900 --> 02:56:43,600
and you compare

5462
02:56:43,600 --> 02:56:45,300
different free things with paid things as well

5463
02:56:45,300 --> 02:56:46,800
which you can just test alright

5464
02:56:46,800 --> 02:56:47,766
so buy X buy free

5465
02:56:47,766 --> 02:56:49,700
can lengthen the amount of time customers stay

5466
02:56:49,700 --> 02:56:51,566
if normal customers stay for 3 months

5467
02:56:51,566 --> 02:56:55,300
then buy 2 get 2 customers will keep them for 4 months

5468
02:56:55,366 --> 02:56:57,166
so whatever you sell try and extend

5469
02:56:57,166 --> 02:56:58,466
whatever the normal customer duration is

5470
02:56:58,466 --> 02:56:59,733
by saying saying like

5471
02:56:59,733 --> 02:57:01,500
if I know customers stay for three

5472
02:57:01,500 --> 02:57:02,200
I do buy two

5473
02:57:02,200 --> 02:57:04,966
get two and I price it so that it's still four

5474
02:57:05,600 --> 02:57:07,600
I make more money I make 33% more money

5475
02:57:07,600 --> 02:57:09,000
it's a great deal uh

5476
02:57:09,000 --> 02:57:11,733
if you use by exit y to generate a lot of cash fast

5477
02:57:11,733 --> 02:57:12,500
make sure you manage it

5478
02:57:12,500 --> 02:57:13,766
you can deliver on your promises

5479
02:57:13,766 --> 02:57:15,900
if you need fast cash and your business is healthy

5480
02:57:15,966 --> 02:57:18,266
make sure make this offer to existing customers

5481
02:57:18,566 --> 02:57:19,933
and just cap how many you sell to

5482
02:57:19,933 --> 02:57:22,900
if you have recurring I recommend 10% is the cap um

5483
02:57:22,900 --> 02:57:24,800
keep selling customers who prepay for long durations

5484
02:57:24,800 --> 02:57:27,400
because they are the most likely people to buy again

5485
02:57:27,700 --> 02:57:30,433
with that being said that is by X y free

5486
02:57:32,533 --> 02:57:32,800
alright

5487
02:57:32,800 --> 02:57:35,100
so we cover the first 4 offer when your money back free

5488
02:57:35,100 --> 02:57:35,666
free giveaways

5489
02:57:35,666 --> 02:57:38,300
decoy offer buy x y free they just keep getting better

5490
02:57:38,400 --> 02:57:39,966
um and right now you're probably

5491
02:57:39,966 --> 02:57:41,100
your mind's probably moving like shoot

5492
02:57:41,100 --> 02:57:42,666
I could use all of these yes

5493
02:57:42,700 --> 02:57:44,666
yes you could that's the point

5494
02:57:44,666 --> 02:57:46,200
that's why these things are so valuable

5495
02:57:46,400 --> 02:57:49,300
so now we move on to pay less now or pay more later

5496
02:57:49,333 --> 02:57:52,966
also super sexy so let's dive in same big 5

5497
02:57:52,966 --> 02:57:54,300
how I Learned it description examples

5498
02:57:54,300 --> 02:57:55,166
important points

5499
02:57:55,533 --> 02:57:59,100
this is my big fancy drawing big and fancy enjoy

5500
02:57:59,266 --> 02:58:00,833
alright so how I Learned it

5501
02:58:00,900 --> 02:58:02,533
so I went I got this email

5502
02:58:02,533 --> 02:58:04,000
for double your reading speed in 3 hours

5503
02:58:04,000 --> 02:58:06,233
or it's free by the world's fastest reader

5504
02:58:06,366 --> 02:58:08,166
and so I was like sure okay

5505
02:58:08,166 --> 02:58:10,566
so I clicked to register and so they said uh

5506
02:58:10,566 --> 02:58:12,666
put your credit card down for $0

5507
02:58:12,666 --> 02:58:16,033
and get billed 300 bucks after the training ends

5508
02:58:16,100 --> 02:58:17,800
and if your reading speed doesn't double

5509
02:58:17,900 --> 02:58:19,466
email us and we won't Bill you

5510
02:58:19,666 --> 02:58:20,866
you have to attend to be eligible

5511
02:58:20,866 --> 02:58:22,333
I was like that's pretty fair

5512
02:58:22,333 --> 02:58:22,866
like I mean

5513
02:58:22,866 --> 02:58:23,800
if I could double my reading

5514
02:58:23,800 --> 02:58:25,266
I would pay $300 for that

5515
02:58:25,266 --> 02:58:28,766
and I get to decide if I doubled my reading after I

5516
02:58:28,800 --> 02:58:30,466
I decide to pay after I've doubled it already

5517
02:58:30,466 --> 02:58:31,500
I was like that's kind of cool

5518
02:58:31,666 --> 02:58:33,000
so I said I clicked okay

5519
02:58:33,000 --> 02:58:34,133
and then the next page said

5520
02:58:34,133 --> 02:58:36,733
or pay $97 right now

5521
02:58:36,733 --> 02:58:38,800
and get the Recording Summit for free

5522
02:58:39,066 --> 02:58:40,400
and I was like oh

5523
02:58:41,300 --> 02:58:42,800
I kind of want the recordings

5524
02:58:43,533 --> 02:58:46,666
but I will say I was younger and I was broker

5525
02:58:46,666 --> 02:58:48,600
and I was like I want to make sure it works

5526
02:58:48,666 --> 02:58:51,100
and so I decided to not take this offer

5527
02:58:51,333 --> 02:58:54,066
now on the three hour training or whatever

5528
02:58:54,066 --> 02:58:56,366
the first hour and a half or two hours

5529
02:58:56,900 --> 02:58:58,333
he had an objective point in the middle

5530
02:58:58,333 --> 02:58:59,466
where he was like okay

5531
02:58:59,466 --> 02:59:01,566
now I want he tested us in the very beginning

5532
02:59:01,566 --> 02:59:03,800
and then at the halfway point he tested us again

5533
02:59:03,800 --> 02:59:05,200
you know everybody who raised their hand said

5534
02:59:05,200 --> 02:59:05,700
yep my

5535
02:59:05,700 --> 02:59:06,666
you know reading speed bubbles

5536
02:59:06,666 --> 02:59:06,866
we're like oh

5537
02:59:06,866 --> 02:59:08,600
I tripled it or whatever it was

5538
02:59:08,766 --> 02:59:10,600
um some people didn't

5539
02:59:10,600 --> 02:59:11,766
and then he like called these people out

5540
02:59:11,766 --> 02:59:13,500
tried to help them like live whatever

5541
02:59:13,933 --> 02:59:15,800
and then after that just at the very end

5542
02:59:15,800 --> 02:59:16,700
he was like by the way

5543
02:59:16,700 --> 02:59:17,500
if you thought this was good

5544
02:59:17,500 --> 02:59:19,266
this is what the progress we made in

5545
02:59:19,266 --> 02:59:20,433
you know two hours

5546
02:59:20,500 --> 02:59:21,333
if you want

5547
02:59:21,333 --> 02:59:22,866
I have an eight week intensive on the back end

5548
02:59:22,866 --> 02:59:25,466
that will even further increase your reading speed

5549
02:59:25,466 --> 02:59:26,966
and your comprehension

5550
02:59:27,100 --> 02:59:29,966
and so you can read at a faster rate and contain more

5551
02:59:29,966 --> 02:59:30,666
and ultimately

5552
02:59:30,666 --> 02:59:32,300
like learning is the meta skill of everything

5553
02:59:32,300 --> 02:59:33,800
like if you learn this one skill

5554
02:59:33,800 --> 02:59:34,400
blah blah blah

5555
02:59:34,400 --> 02:59:36,666
right and so I ended up not doing that

5556
02:59:36,666 --> 02:59:37,500
but I was like wow

5557
02:59:37,500 --> 02:59:38,366
this is really interesting

5558
02:59:38,366 --> 02:59:40,100
he gets all these people on

5559
02:59:40,100 --> 02:59:41,666
he makes money from the 90 sevens

5560
02:59:41,666 --> 02:59:43,100
he makes money from the three 90 sevens

5561
02:59:43,100 --> 02:59:45,166
and he then pitches people another thing

5562
02:59:45,166 --> 02:59:46,633
I was like this is pretty cool

5563
02:59:47,033 --> 02:59:48,800
so that's how I Learned it

5564
02:59:48,800 --> 02:59:49,600
and I was like I wonder

5565
02:59:49,600 --> 02:59:51,400
if I could do something like this for my business

5566
02:59:51,400 --> 02:59:54,000
and you can too so let's dive in

5567
02:59:54,100 --> 02:59:56,000
so in pay less now or pay more later

5568
02:59:56,000 --> 02:59:58,300
you give people a choice to pay full price later

5569
02:59:58,333 --> 03:00:00,500
with an implied guarantee of satisfaction

5570
03:00:00,500 --> 03:00:02,266
or pay a discounted price now

5571
03:00:02,500 --> 03:00:04,800
this play removes all risk from the customer

5572
03:00:04,800 --> 03:00:05,866
which is why it's so compelling

5573
03:00:05,866 --> 03:00:07,466
the other amazing thing is that you can advertise

5574
03:00:07,466 --> 03:00:09,733
that it's free because they put $0 down

5575
03:00:09,733 --> 03:00:11,266
and they only pay after they get it

5576
03:00:11,266 --> 03:00:16,000
if they want so they pay later and only if they like it

5577
03:00:16,000 --> 03:00:18,533
and it combines the benefits of a delayed payment

5578
03:00:18,533 --> 03:00:19,766
and a satisfaction guarantee

5579
03:00:19,766 --> 03:00:20,700
so it gives us both

5580
03:00:20,700 --> 03:00:22,966
it's like it's a delay and satisfaction

5581
03:00:22,966 --> 03:00:24,833
that's why it makes it so compelling for people

5582
03:00:24,966 --> 03:00:26,533
and anyone can sell this

5583
03:00:26,533 --> 03:00:28,366
almost anyone will agree to pay later

5584
03:00:28,366 --> 03:00:29,066
if they're satisfied

5585
03:00:29,066 --> 03:00:31,400
so from a salesmanship perspective for your business

5586
03:00:31,400 --> 03:00:33,200
if you're like not that good at sales

5587
03:00:33,200 --> 03:00:36,766
this offer primo but once they agree to pay later

5588
03:00:36,766 --> 03:00:38,133
you can then get them to pay

5589
03:00:38,133 --> 03:00:40,300
now with hefty discounts and valuable bonuses

5590
03:00:40,300 --> 03:00:41,733
like in this example

5591
03:00:41,733 --> 03:00:43,266
the recordings was a very valuable bonus

5592
03:00:43,266 --> 03:00:45,766
you can also stack other bonuses as well as discounts

5593
03:00:45,766 --> 03:00:47,000
so it's like oh my god

5594
03:00:47,000 --> 03:00:48,600
which also by the way

5595
03:00:48,600 --> 03:00:52,033
shows you the value of delayed payment and guarantees

5596
03:00:52,166 --> 03:00:53,566
how much you have to discount

5597
03:00:53,566 --> 03:00:55,566
and how many bonuses you have to stack

5598
03:00:55,600 --> 03:00:57,366
shows you the relative value

5599
03:00:57,366 --> 03:00:59,400
of a guarantee and a delayed payment

5600
03:01:00,100 --> 03:01:02,766
so the pay later option allows you to advertise free

5601
03:01:02,766 --> 03:01:03,800
since you can choose to pay or not

5602
03:01:03,800 --> 03:01:05,466
and this gets lots of leads to engage

5603
03:01:05,500 --> 03:01:07,300
but this free offer has an added benefit

5604
03:01:07,300 --> 03:01:09,066
which is we get their card on file

5605
03:01:09,133 --> 03:01:11,900
so this works just as much online as it does in person

5606
03:01:11,900 --> 03:01:13,500
so whether you have either type of business

5607
03:01:13,500 --> 03:01:14,800
it works the same way

5608
03:01:14,866 --> 03:01:16,366
because if they choose this option

5609
03:01:16,366 --> 03:01:17,466
and they hate the product

5610
03:01:17,466 --> 03:01:18,566
then they can cancel it anytime

5611
03:01:18,566 --> 03:01:19,866
before the charge goes through

5612
03:01:19,933 --> 03:01:21,733
but if they accept the pay later option

5613
03:01:21,733 --> 03:01:24,000
then we can make follow up offer to pay now

5614
03:01:24,000 --> 03:01:25,766
and the option can provide the whatever 20

5615
03:01:25,766 --> 03:01:26,700
50% discount

5616
03:01:26,700 --> 03:01:29,366
sometimes 2/3 discount like the 97 example I gave

5617
03:01:29,366 --> 03:01:30,666
and greater bonuses

5618
03:01:30,800 --> 03:01:32,500
and since we already have the card on file

5619
03:01:32,500 --> 03:01:34,000
we make it easy for them to pay

5620
03:01:34,000 --> 03:01:36,066
because now we already have it right

5621
03:01:36,066 --> 03:01:37,600
and so whether they choose to pay now or pay later

5622
03:01:37,600 --> 03:01:39,833
you've got customers and likely some profit

5623
03:01:40,066 --> 03:01:41,933
but to take full advantage of this offer

5624
03:01:41,933 --> 03:01:43,500
you want something else to sell

5625
03:01:43,500 --> 03:01:44,666
so have something more

5626
03:01:44,666 --> 03:01:46,833
better or newer to offer them when the time is right

5627
03:01:47,500 --> 03:01:50,733
alright you wanna market the core value as free

5628
03:01:50,733 --> 03:01:51,900
double your reading speed

5629
03:01:51,933 --> 03:01:53,600
the prospect puts the car down for the

5630
03:01:53,600 --> 03:01:55,166
to consume the service or value

5631
03:01:55,166 --> 03:01:55,600
at the end

5632
03:01:55,600 --> 03:01:57,466
they're billed for the service at full price

5633
03:01:57,566 --> 03:02:01,700
now again if you offset your cost you a car

5634
03:02:01,700 --> 03:02:03,000
the customers with the $97

5635
03:02:03,000 --> 03:02:04,266
whatever the immediate thing is

5636
03:02:04,366 --> 03:02:05,700
then you want as many people to pay

5637
03:02:05,700 --> 03:02:07,300
the three times as expensive thing

5638
03:02:07,333 --> 03:02:09,700
so it's not that you want to force everyone to do that

5639
03:02:09,700 --> 03:02:10,533
and I'll talk about the balance

5640
03:02:10,533 --> 03:02:11,766
between the price points later

5641
03:02:11,766 --> 03:02:14,333
but the objective is not to get everyone to pay now

5642
03:02:14,333 --> 03:02:15,933
or everyone to pay later it's to balance it

5643
03:02:15,933 --> 03:02:18,533
just enough to offset your cost to your customers

5644
03:02:18,533 --> 03:02:20,900
and then get as many people to then uh

5645
03:02:20,933 --> 03:02:21,800
basically delay payments

5646
03:02:21,800 --> 03:02:23,900
so you can make three times the amount alright

5647
03:02:23,900 --> 03:02:26,266
and so you can charge more for the thing

5648
03:02:26,266 --> 03:02:28,633
since it delayed purchase to the same degree

5649
03:02:28,700 --> 03:02:31,100
people will agree to pay more later than they will now

5650
03:02:31,100 --> 03:02:32,766
and so you can also boost the price

5651
03:02:32,766 --> 03:02:34,300
because also if some you

5652
03:02:34,300 --> 03:02:35,100
if someone

5653
03:02:35,866 --> 03:02:36,933
it basically means

5654
03:02:36,933 --> 03:02:39,500
what's the price of the guaranteed delivery

5655
03:02:39,866 --> 03:02:42,800
so when you have someone pay today

5656
03:02:42,800 --> 03:02:43,666
there's a

5657
03:02:43,900 --> 03:02:47,500
a risk metric that they apply to the purchase

5658
03:02:47,500 --> 03:02:48,066
on the risk

5659
03:02:48,066 --> 03:02:48,933
that they don't get

5660
03:02:48,933 --> 03:02:50,466
what they think they're going to get

5661
03:02:50,600 --> 03:02:54,366
if I said hey you only pay me after you get a six pack

5662
03:02:54,400 --> 03:02:55,533
then people are like oh

5663
03:02:55,533 --> 03:02:58,866
then the value of a six pack is directly related

5664
03:02:58,866 --> 03:03:00,200
to the price that they pay

5665
03:03:00,200 --> 03:03:02,933
which means I could charge way more for that thing

5666
03:03:02,933 --> 03:03:04,233
because it's at a delay

5667
03:03:04,400 --> 03:03:06,900
and so we wanna give the one time offer

5668
03:03:07,066 --> 03:03:09,466
uh of the same thing for 1/3 to 1/2

5669
03:03:09,466 --> 03:03:10,200
the price

5670
03:03:10,200 --> 03:03:12,066
plus bonuses and guaranteed to get more people to buy

5671
03:03:12,066 --> 03:03:13,500
now great alright

5672
03:03:13,500 --> 03:03:14,400
so let's do some examples

5673
03:03:14,400 --> 03:03:15,266
cause some people are like okay

5674
03:03:15,266 --> 03:03:16,400
I get how it works for the reading tutorial

5675
03:03:16,400 --> 03:03:17,633
but how does it work for other businesses

5676
03:03:17,800 --> 03:03:22,566
so pay later 0   2 99 after 3 hour training pay now 1

5677
03:03:22,566 --> 03:03:25,500
49 97 doesn't matter recording plus notes okay

5678
03:03:25,500 --> 03:03:26,400
now some of you are like wait

5679
03:03:26,400 --> 03:03:28,733
I thought it said 20 to 50 I thought it said 67

5680
03:03:28,733 --> 03:03:30,933
doesn't really matter you just pick the discount amount

5681
03:03:30,933 --> 03:03:32,866
that accomplishes your objective

5682
03:03:32,866 --> 03:03:35,266
for offsetting as much cash as you need

5683
03:03:35,266 --> 03:03:37,266
to break even on the acquisition

5684
03:03:37,366 --> 03:03:40,566
now upsell and also to be clear

5685
03:03:40,566 --> 03:03:41,866
if you are doing this

5686
03:03:41,866 --> 03:03:44,433
this thing is happening all within 30 days

5687
03:03:44,466 --> 03:03:48,166
I also include the cash I get from the pay later option

5688
03:03:48,166 --> 03:03:50,100
because they're still paying in a 30 day window

5689
03:03:50,100 --> 03:03:52,266
so if I get some today and then some in two weeks

5690
03:03:52,266 --> 03:03:53,933
or some in three weeks or some in four weeks

5691
03:03:53,933 --> 03:03:55,933
I still get it before I pay my card back

5692
03:03:55,933 --> 03:03:57,666
whatever doesn't matter to me

5693
03:03:58,000 --> 03:03:59,566
now upsell

5694
03:03:59,566 --> 03:04:02,100
the upsell here is the 8 week w reading speed thing

5695
03:04:02,100 --> 03:04:03,266
cool so we have 3 offers

5696
03:04:03,266 --> 03:04:04,733
pay later pay now upsell

5697
03:04:04,733 --> 03:04:07,333
that's how this works now let's say I'm in the

5698
03:04:07,333 --> 03:04:09,133
you know find your first real estate deal

5699
03:04:09,133 --> 03:04:09,666
OK fine

5700
03:04:09,666 --> 03:04:12,600
I do a 3 day workshop pay later for $0

5701
03:04:12,600 --> 03:04:13,400
for 3 day workshop

5702
03:04:13,400 --> 03:04:16,200
they get billed $500 at the end unless they cancel

5703
03:04:16,200 --> 03:04:17,466
pay now is 2

5704
03:04:17,466 --> 03:04:20,166
99 for the three day workshop plus the recordings

5705
03:04:20,166 --> 03:04:20,400
plus

5706
03:04:20,400 --> 03:04:22,566
a one on one call with a distressed property expert

5707
03:04:22,566 --> 03:04:23,866
plus printed materials

5708
03:04:23,866 --> 03:04:25,433
that they can use at the workshop

5709
03:04:25,866 --> 03:04:27,166
kinda compelling now

5710
03:04:27,166 --> 03:04:28,966
the upsell is that when they go to the 3 day workshop

5711
03:04:28,966 --> 03:04:30,133
guess what you do you sell

5712
03:04:30,133 --> 03:04:31,466
$30,000 to take them through

5713
03:04:31,466 --> 03:04:33,500
every other step of closing their first deal

5714
03:04:33,533 --> 03:04:36,033
within 6 months plus legal templates

5715
03:04:36,300 --> 03:04:36,400
uh

5716
03:04:36,400 --> 03:04:38,766
an advisor to vet the investment inspection checklist

5717
03:04:38,766 --> 03:04:40,900
whatever I don't think I mentioned this yet

5718
03:04:40,900 --> 03:04:42,666
but one of the really sexy parts about this is that

5719
03:04:42,666 --> 03:04:44,066
because every single person who registers

5720
03:04:44,066 --> 03:04:46,400
put his car down the show rates are astonishing

5721
03:04:46,400 --> 03:04:47,700
they're very very good

5722
03:04:47,966 --> 03:04:49,533
cause every single like you think about like

5723
03:04:49,533 --> 03:04:49,966
oh this

5724
03:04:49,966 --> 03:04:51,133
how do I make sure people come to the workshops

5725
03:04:51,133 --> 03:04:52,433
like dude everybody put a car down

5726
03:04:52,566 --> 03:04:53,966
physical products do this right

5727
03:04:53,966 --> 03:04:56,366
14 day clothing trial so they have a pay later option

5728
03:04:56,366 --> 03:04:59,266
$0 now get it then get billed one 49 in 14 days

5729
03:04:59,266 --> 03:05:00,300
Amazon started doing this

5730
03:05:00,300 --> 03:05:02,133
it's try before you buy like this

5731
03:05:02,133 --> 03:05:04,466
like this works in any business alright

5732
03:05:04,466 --> 03:05:06,833
so the pay now option is you pay $97 for the clothing

5733
03:05:06,866 --> 03:05:08,966
plus you get an accessory to go with it

5734
03:05:09,500 --> 03:05:10,766
but you could have this offer

5735
03:05:10,766 --> 03:05:11,800
because then you could advertise that

5736
03:05:11,800 --> 03:05:12,800
people could try for free

5737
03:05:12,800 --> 03:05:14,833
but you'd still want to monetize it sooner

5738
03:05:15,100 --> 03:05:15,933
the upsell could be that

5739
03:05:15,933 --> 03:05:18,100
the dress comes with an offer for monthly subscription

5740
03:05:18,100 --> 03:05:19,600
to more dresses or more clothes

5741
03:05:19,600 --> 03:05:20,933
or clothes in this style

5742
03:05:20,933 --> 03:05:22,966
and the customers have to return the product in like

5743
03:05:22,966 --> 03:05:23,766
new condition

5744
03:05:23,900 --> 03:05:26,066
before billing to qualify for the guarantee

5745
03:05:26,866 --> 03:05:28,400
now let's do a local business

5746
03:05:28,400 --> 03:05:29,400
I'm giving more examples

5747
03:05:29,400 --> 03:05:31,200
because people tend to be less creative

5748
03:05:31,333 --> 03:05:31,533
alright

5749
03:05:31,533 --> 03:05:33,733
so let's say you've got trim your hedges alright

5750
03:05:33,733 --> 03:05:37,033
like very normal you know local business

5751
03:05:37,200 --> 03:05:39,300
so the pay later option would be $0

5752
03:05:39,300 --> 03:05:40,733
lawn cut plus hedges

5753
03:05:40,733 --> 03:05:42,933
and then after we do it and it's to your liking

5754
03:05:42,933 --> 03:05:46,166
it's 600 bucks or three 69

5755
03:05:46,166 --> 03:05:47,266
now lawn cut

5756
03:05:47,266 --> 03:05:48,800
hedges and lawn treatment and some people are like

5757
03:05:48,800 --> 03:05:49,800
why is that so expensive

5758
03:05:49,800 --> 03:05:52,100
I have big houses whatever fight me

5759
03:05:52,100 --> 03:05:53,500
I'm kidding you can choose

5760
03:05:53,666 --> 03:05:54,866
change the prices to whatever you want

5761
03:05:54,866 --> 03:05:55,700
it doesn't really matter alright

5762
03:05:55,700 --> 03:05:59,366
you can make this $59 this 30 $36 it's fine alright

5763
03:05:59,366 --> 03:06:02,566
relax relax you're gonna be OK alright

5764
03:06:02,566 --> 03:06:05,600
now up sale so the up sale from there is the one

5765
03:06:05,600 --> 03:06:08,466
99 a month for long care services

5766
03:06:08,466 --> 03:06:10,300
and so then the rep comes to the house

5767
03:06:10,300 --> 03:06:12,600
makes the estimate and then offers both options

5768
03:06:12,600 --> 03:06:14,466
then up sales once the work is done

5769
03:06:14,733 --> 03:06:16,133
and so when they go there to say hey

5770
03:06:16,133 --> 03:06:18,333
we can trim the edges and you can pay me right now

5771
03:06:18,333 --> 03:06:20,066
or you can pay me after the thing's done

5772
03:06:20,066 --> 03:06:20,966
you can pay more

5773
03:06:22,166 --> 03:06:23,600
right and then as soon as we get the card

5774
03:06:23,600 --> 03:06:25,166
then you made the upsells boom

5775
03:06:25,166 --> 03:06:28,900
important points okay so here's the key part

5776
03:06:28,900 --> 03:06:31,266
promise a clear yes no result

5777
03:06:31,366 --> 03:06:33,733
so first you make a promise yes

5778
03:06:33,733 --> 03:06:34,500
no second

5779
03:06:34,500 --> 03:06:36,000
make sure you can deliver on it within your time frame

5780
03:06:36,000 --> 03:06:38,766
and if you don't they will ask to not be built

5781
03:06:38,766 --> 03:06:41,400
and so you wanna make this as objective as possible

5782
03:06:41,400 --> 03:06:43,433
for people so they can say yes

5783
03:06:43,566 --> 03:06:45,266
I found my first deal yes

5784
03:06:45,266 --> 03:06:47,033
I got my first reply from an email

5785
03:06:47,066 --> 03:06:49,566
yes my reading speed doubled cause I got to hear like

5786
03:06:49,566 --> 03:06:51,633
and you wanna have some sort of measurement before

5787
03:06:51,666 --> 03:06:52,933
and some sort of measurement during

5788
03:06:52,933 --> 03:06:54,100
so you can see the progress

5789
03:06:54,700 --> 03:06:55,766
so for example

5790
03:06:55,766 --> 03:06:57,766
if you promised a decrease in shoulder pain

5791
03:06:57,766 --> 03:06:59,033
have them rate their pain

5792
03:06:59,200 --> 03:07:00,500
before you do your magic trick

5793
03:07:00,500 --> 03:07:01,700
and then ask them to rate it after

5794
03:07:01,700 --> 03:07:02,266
if it went down

5795
03:07:02,266 --> 03:07:04,300
you succeeded and you can sell them something else

5796
03:07:04,333 --> 03:07:05,566
keep the promise simple

5797
03:07:05,566 --> 03:07:06,466
clear and measurable

5798
03:07:06,466 --> 03:07:08,466
this avoids unnecessary cancellations

5799
03:07:08,900 --> 03:07:11,700
now make a conditional satisfaction guarantee

5800
03:07:11,700 --> 03:07:15,100
so people can only cancel the billing if they qualify

5801
03:07:15,100 --> 03:07:15,800
for example

5802
03:07:15,800 --> 03:07:18,266
they had to show up to the reading training to qualify

5803
03:07:18,266 --> 03:07:19,466
alright it's key point

5804
03:07:19,533 --> 03:07:21,466
and so if you don't show up to the workshop

5805
03:07:21,466 --> 03:07:23,033
then you can't ask for the refund

5806
03:07:23,300 --> 03:07:25,266
so think attendance showing up for an appointment

5807
03:07:25,266 --> 03:07:27,400
turning in data make the criteria

5808
03:07:27,400 --> 03:07:30,866
what people do to get the value out of the product

5809
03:07:31,000 --> 03:07:32,333
alright which should make you feel good too

5810
03:07:32,333 --> 03:07:33,333
cause then you could explain it's like

5811
03:07:33,333 --> 03:07:34,933
listen I have this as the criteria

5812
03:07:34,933 --> 03:07:36,566
because you said you wanna double your reading speed

5813
03:07:36,566 --> 03:07:37,366
you're not gonna double your reading speed

5814
03:07:37,366 --> 03:07:38,300
if you don't show up

5815
03:07:38,300 --> 03:07:40,700
you're not gonna find your distressed property

5816
03:07:40,700 --> 03:07:41,966
unless you come to the workshop

5817
03:07:42,933 --> 03:07:44,900
have bonuses for your pay now

5818
03:07:44,900 --> 03:07:47,966
offers to get even more buyers alright

5819
03:07:47,966 --> 03:07:50,066
so if you want more people to take that pay now option

5820
03:07:50,066 --> 03:07:52,533
just stack the bonuses decrease the price um

5821
03:07:52,533 --> 03:07:54,366
optimizing your pay now and pay later offers

5822
03:07:54,366 --> 03:07:56,633
if too many people take your pay later option

5823
03:07:56,666 --> 03:07:58,300
discount the pay now option more

5824
03:07:58,300 --> 03:07:59,533
add better bonuses or both

5825
03:07:59,533 --> 03:08:01,500
and if too many people take your pay now option

5826
03:08:01,500 --> 03:08:02,500
go the other direction

5827
03:08:03,200 --> 03:08:05,100
if more than 10% of pay later

5828
03:08:05,100 --> 03:08:06,066
people cancel their payment

5829
03:08:06,066 --> 03:08:08,100
you promise too much uh

5830
03:08:08,100 --> 03:08:09,466
the guarantee conditions are too low

5831
03:08:09,466 --> 03:08:11,900
or the price is too high and so the last one's

5832
03:08:11,900 --> 03:08:14,366
the one that can be kind of tricky is

5833
03:08:14,366 --> 03:08:15,666
if you have

5834
03:08:15,666 --> 03:08:19,233
a massive discrepancy between pay now and pay later

5835
03:08:19,500 --> 03:08:21,666
then sometimes people will get the value

5836
03:08:21,666 --> 03:08:24,466
and just be cheapskates that's why having

5837
03:08:24,466 --> 03:08:25,533
the objective measure

5838
03:08:25,533 --> 03:08:27,866
of whether they got the thing is so important

5839
03:08:27,866 --> 03:08:29,366
for this now again

5840
03:08:29,366 --> 03:08:32,400
I would explain that 10% is what you should target

5841
03:08:32,400 --> 03:08:33,333
or what you should expect

5842
03:08:33,333 --> 03:08:34,133
so

5843
03:08:34,133 --> 03:08:36,966
10% of people who have pay later are going to just say

5844
03:08:36,966 --> 03:08:37,866
don't Bill me

5845
03:08:37,966 --> 03:08:39,900
so just factor in the cost of doing business

5846
03:08:39,900 --> 03:08:41,800
so if you have 100 people that do pay later

5847
03:08:41,800 --> 03:08:43,600
expect 10 to say that now

5848
03:08:43,600 --> 03:08:46,666
if like 20 say that more than then it's like okay

5849
03:08:46,666 --> 03:08:48,300
we need to change one of these other things

5850
03:08:49,100 --> 03:08:50,100
I would say the fourth thing is that

5851
03:08:50,100 --> 03:08:51,600
you're selling people who can't afford it

5852
03:08:52,933 --> 03:08:54,700
note no matter how well you deliver

5853
03:08:54,700 --> 03:08:56,600
some people will cancel the payment and that's okay

5854
03:08:56,600 --> 03:08:57,800
just cost of doing business

5855
03:08:57,866 --> 03:08:58,766
now uh

5856
03:08:58,766 --> 03:09:00,400
this works for recurring revenue businesses

5857
03:09:00,400 --> 03:09:00,933
too'cause you're like

5858
03:09:00,933 --> 03:09:02,100
how does this work for those businesses

5859
03:09:02,100 --> 03:09:03,366
let me explain so

5860
03:09:03,366 --> 03:09:05,800
you just give them the option to pay a higher

5861
03:09:05,800 --> 03:09:08,266
ongoing rate 30 days later

5862
03:09:08,300 --> 03:09:09,800
or they pay less today

5863
03:09:09,800 --> 03:09:12,733
and they keep the better rate for good alright

5864
03:09:12,733 --> 03:09:16,200
really sexy so plus you can add in some bonuses

5865
03:09:16,400 --> 03:09:18,866
so I'll I'll I'll just give you one line now

5866
03:09:18,866 --> 03:09:20,166
and we'll talk more about it in the one time

5867
03:09:20,166 --> 03:09:21,166
bonuses chapter

5868
03:09:21,200 --> 03:09:23,300
uh with continuity but it works like this

5869
03:09:23,300 --> 03:09:24,966
someone does a free trial

5870
03:09:25,200 --> 03:09:27,000
of whatever your subscription is

5871
03:09:27,000 --> 03:09:29,066
into $400 a month

5872
03:09:29,166 --> 03:09:30,600
and then on the thank you page you say

5873
03:09:30,600 --> 03:09:33,666
or you can pay $300 today

5874
03:09:33,666 --> 03:09:34,866
skip your trial

5875
03:09:35,066 --> 03:09:38,066
and you get to lock in at $300 a month for life

5876
03:09:38,066 --> 03:09:40,266
pretty sexy that's but now in order to do that

5877
03:09:40,266 --> 03:09:41,166
you would add bonuses

5878
03:09:41,166 --> 03:09:42,666
and that also gives you a lifetime discount

5879
03:09:42,666 --> 03:09:44,700
there's two there's two benefits from that

5880
03:09:44,700 --> 03:09:46,366
which is why it makes such a compelling offer

5881
03:09:46,366 --> 03:09:48,800
but you can advertise the thing as a free trial

5882
03:09:48,800 --> 03:09:50,500
but then you can liquidate the acquisition

5883
03:09:50,500 --> 03:09:53,000
because you have the immediate thank you page offer

5884
03:09:53,500 --> 03:09:56,800
so if you run events workshops presentations

5885
03:09:56,800 --> 03:09:59,000
hint at your next offer early

5886
03:09:59,000 --> 03:10:00,766
so if the reading guru had said

5887
03:10:00,766 --> 03:10:02,300
everyone wants to know

5888
03:10:02,300 --> 03:10:04,866
when my next reading intensive starts

5889
03:10:04,866 --> 03:10:06,700
because they sell out so fast

5890
03:10:06,700 --> 03:10:09,166
I'll get to it at the end but please pay attention

5891
03:10:09,166 --> 03:10:11,133
I want to deliver on the promise I made to you guys

5892
03:10:11,133 --> 03:10:12,266
to double your reading speed

5893
03:10:12,266 --> 03:10:14,700
first by hinting about his new offer

5894
03:10:14,700 --> 03:10:16,966
he would have sold more of it and he didn't

5895
03:10:16,966 --> 03:10:19,433
but if he had I might have had higher likely to buy

5896
03:10:19,666 --> 03:10:21,900
and so I used to do a lot of nutrition consultations

5897
03:10:21,900 --> 03:10:24,333
and this is what I Learned myself doing this

5898
03:10:24,333 --> 03:10:26,100
is that I would start my consultation by being like

5899
03:10:26,100 --> 03:10:28,300
listen everybody wants to know what supplements to buy

5900
03:10:28,300 --> 03:10:29,666
we're gonna get to what supplements to buy

5901
03:10:29,666 --> 03:10:31,100
but right now we gotta get your way in

5902
03:10:31,100 --> 03:10:32,100
we gotta get you to understand food

5903
03:10:32,100 --> 03:10:32,933
that's the most important part

5904
03:10:32,933 --> 03:10:34,266
everything I just said was true

5905
03:10:34,633 --> 03:10:37,300
but by saying everyone wants to buy

5906
03:10:37,466 --> 03:10:39,300
everyone wants to know what to buy

5907
03:10:39,333 --> 03:10:41,566
I I I seed

5908
03:10:41,566 --> 03:10:44,033
the idea that they're all going to buy something

5909
03:10:44,266 --> 03:10:46,100
but I see it in a way that's not

5910
03:10:46,133 --> 03:10:47,866
it's me talking about everybody else

5911
03:10:47,866 --> 03:10:50,333
not the people in the room and so I would say hey

5912
03:10:50,333 --> 03:10:51,566
people are gonna interrupt me all you know

5913
03:10:51,566 --> 03:10:52,400
to ask about supplements

5914
03:10:52,400 --> 03:10:54,766
and it annoyed me and I did it one time by accident

5915
03:10:54,766 --> 03:10:56,766
and then of course it worked really well

5916
03:10:56,766 --> 03:10:58,100
and then I started doing it every other time

5917
03:10:58,100 --> 03:10:59,733
on purpose all right

5918
03:10:59,733 --> 03:11:03,033
and so by accident I implied that people who uh

5919
03:11:03,133 --> 03:11:04,100
that everybody bought supplements

5920
03:11:04,100 --> 03:11:05,466
without actually offering them

5921
03:11:05,500 --> 03:11:07,533
and all the head nods actually showed that

5922
03:11:07,533 --> 03:11:09,100
they actually did want more products

5923
03:11:09,133 --> 03:11:11,266
and so all these factors got more people to buy

5924
03:11:11,266 --> 03:11:12,566
when I finally asked them to

5925
03:11:12,566 --> 03:11:15,100
so it was a happy mistake that I was sure to repeat

5926
03:11:15,400 --> 03:11:17,200
now if you're selling over the phone

5927
03:11:17,300 --> 03:11:20,566
get the card first then ask oh yeah

5928
03:11:20,566 --> 03:11:21,700
I forgot to ask you

5929
03:11:21,700 --> 03:11:23,766
do you want to save 200 bucks on that price

5930
03:11:23,966 --> 03:11:25,800
so I'm giving you different selling environment

5931
03:11:25,800 --> 03:11:27,033
so if you're selling in person

5932
03:11:27,400 --> 03:11:28,700
I explain that the the long care thing

5933
03:11:28,700 --> 03:11:31,100
if you sell digitally the thank you page thing

5934
03:11:31,100 --> 03:11:32,466
if you're selling over the phone

5935
03:11:32,466 --> 03:11:33,966
you get the card first for the trial

5936
03:11:33,966 --> 03:11:35,900
you get the card first for the pay later option

5937
03:11:36,100 --> 03:11:37,866
then you ask like the thank you pages

5938
03:11:37,866 --> 03:11:39,566
once they've agreed to that purchase

5939
03:11:39,933 --> 03:11:41,500
then you say by the way

5940
03:11:41,500 --> 03:11:42,400
I forgot to mention

5941
03:11:42,400 --> 03:11:43,800
do you want to save a little bit of money

5942
03:11:43,800 --> 03:11:44,400
or say

5943
03:11:44,400 --> 03:11:46,400
whatever the price is and get these extra things

5944
03:11:46,400 --> 03:11:49,300
a lot of people say yes and then you should explain yep

5945
03:11:49,300 --> 03:11:52,166
so for people who decide to just sign up without uh

5946
03:11:52,166 --> 03:11:53,300
waiting to experience it first

5947
03:11:53,300 --> 03:11:54,666
if you want to skip the trial

5948
03:11:54,700 --> 03:11:58,000
you get VIP seating and recordings from the event

5949
03:11:58,000 --> 03:12:00,366
and you get it for $200 less than if you wait

5950
03:12:00,366 --> 03:12:02,333
and you won't be able to get those two other bonuses

5951
03:12:02,333 --> 03:12:04,166
at any time you wanna go ahead and do that

5952
03:12:04,166 --> 03:12:05,700
and so the more compelling those bonuses are

5953
03:12:05,700 --> 03:12:06,866
the more people will say yes

5954
03:12:07,100 --> 03:12:11,033
great now let's summarize this b alright

5955
03:12:11,100 --> 03:12:13,500
so pay less now pay more later offers people to uh

5956
03:12:13,500 --> 03:12:16,600
a choice to pay full price

5957
03:12:16,600 --> 03:12:18,900
or pay a discounted price with additional bonuses

5958
03:12:18,900 --> 03:12:20,000
if they pay now

5959
03:12:20,066 --> 03:12:22,000
the pay later option has a delayed payment

5960
03:12:22,000 --> 03:12:23,300
with a conditional guarantee

5961
03:12:23,333 --> 03:12:26,566
have a clear criteria to qualify for the guarantee

5962
03:12:26,566 --> 03:12:28,233
and easy ways to measure it

5963
03:12:28,333 --> 03:12:31,066
if you can align the criteria with what

5964
03:12:31,066 --> 03:12:34,033
gets people the most value from the product

5965
03:12:34,066 --> 03:12:37,800
the pay now option offers a 20 to 50%

5966
03:12:37,800 --> 03:12:38,900
sometimes two thirds

5967
03:12:38,900 --> 03:12:40,700
discount and bonuses if they pay now

5968
03:12:40,700 --> 03:12:42,466
depends how desperate you are to get people to pay

5969
03:12:42,600 --> 03:12:45,433
offer customers the pay now option

5970
03:12:45,633 --> 03:12:48,800
after they already accept the pay later terms alright

5971
03:12:48,800 --> 03:12:50,066
so if they choose to pay now

5972
03:12:50,066 --> 03:12:51,966
then they get the discount and bonuses instead of

5973
03:12:51,966 --> 03:12:54,500
the guarantee instead of in lieu of alright

5974
03:12:54,500 --> 03:12:56,933
now you make your promise easy to track

5975
03:12:56,933 --> 03:12:59,900
and difficult to refute so not only is it easy to track

5976
03:12:59,900 --> 03:13:01,166
but they can't say they didn't have it

5977
03:13:01,166 --> 03:13:02,066
the easier it is to track

5978
03:13:02,066 --> 03:13:03,166
and the harder it is to refute

5979
03:13:03,166 --> 03:13:05,466
the better it is for this type of offer

5980
03:13:05,500 --> 03:13:07,133
so you want to be as clear as a yes

5981
03:13:07,133 --> 03:13:09,533
no and if you have more than 10%

5982
03:13:09,533 --> 03:13:11,266
canceling the pay later option

5983
03:13:11,266 --> 03:13:12,000
you promise too much

5984
03:13:12,000 --> 03:13:15,466
the guarantee conditions are too low or the price uh

5985
03:13:15,466 --> 03:13:16,300
is too high and

5986
03:13:16,300 --> 03:13:16,566
or

5987
03:13:16,566 --> 03:13:18,366
the people you're selling to are not the right people

5988
03:13:18,400 --> 03:13:19,700
alright so also

5989
03:13:19,700 --> 03:13:21,600
give extra attention to the customers who claim

5990
03:13:21,600 --> 03:13:22,666
they haven't gotten value

5991
03:13:22,666 --> 03:13:23,800
if you remember during the thing

5992
03:13:23,800 --> 03:13:25,566
if people didn't say they raised their hand

5993
03:13:25,566 --> 03:13:27,400
and they didn't double the reading speed

5994
03:13:27,400 --> 03:13:29,166
he attended to them so he could check off the can

5995
03:13:29,166 --> 03:13:30,766
he basically purposely

5996
03:13:30,766 --> 03:13:32,000
brought down the cancellations

5997
03:13:32,000 --> 03:13:33,400
that he was going to get later

5998
03:13:33,400 --> 03:13:34,300
and so there

5999
03:13:34,300 --> 03:13:36,200
it's really easy to tip people over the edge

6000
03:13:36,200 --> 03:13:38,400
it probably takes if especially if an in person thing

6001
03:13:38,400 --> 03:13:40,066
you can just easily check those boxes off

6002
03:13:40,066 --> 03:13:42,566
and it'll save you a ton of money in cancellations

6003
03:13:42,900 --> 03:13:45,200
and that is the pay list now or pay more later

6004
03:13:46,966 --> 03:13:48,866
so we covered win your money back

6005
03:13:48,866 --> 03:13:50,566
free Giveaways Decoy offers

6006
03:13:50,566 --> 03:13:53,900
bias get why free pay less now or pay more later

6007
03:13:53,933 --> 03:13:56,000
those are the 5 main attraction offers in the book

6008
03:13:56,000 --> 03:13:59,866
and you Mister Video Training attendee get a bonus

6009
03:13:59,866 --> 03:14:01,500
No. 6 free with consumption

6010
03:14:01,500 --> 03:14:04,166
the reason that this one I pulled out of the book

6011
03:14:04,166 --> 03:14:06,000
is because I think it required the most skill to use

6012
03:14:06,000 --> 03:14:07,666
and it was the most amorphous in nature

6013
03:14:07,666 --> 03:14:09,700
so it's the most complex um

6014
03:14:09,700 --> 03:14:11,133
but it's it is one of the most

6015
03:14:11,133 --> 03:14:13,100
used things that people have in marketing

6016
03:14:13,166 --> 03:14:16,966
so let's dive into it now this one

6017
03:14:16,966 --> 03:14:17,800
uh same five

6018
03:14:17,800 --> 03:14:21,000
how I Learned it so I went to an event for uh

6019
03:14:21,100 --> 03:14:23,266
for my gym to learn marketing stuff

6020
03:14:23,400 --> 03:14:24,966
and I went to a side

6021
03:14:24,966 --> 03:14:26,300
stage to see one of the presenters

6022
03:14:26,300 --> 03:14:28,100
cause they're like three stages going at any time

6023
03:14:28,133 --> 03:14:28,800
so I saw this

6024
03:14:28,800 --> 03:14:31,500
guy present and he did an entire pitch deck

6025
03:14:31,500 --> 03:14:33,466
but then right where you transition the offer

6026
03:14:33,566 --> 03:14:34,266
he just didn't

6027
03:14:34,266 --> 03:14:35,900
because no one was allowed to pitch at this event

6028
03:14:36,066 --> 03:14:36,700
and she said hey

6029
03:14:36,700 --> 03:14:37,566
if you wanna find out more

6030
03:14:37,566 --> 03:14:39,666
you can just go you know over there and whatever

6031
03:14:39,666 --> 03:14:41,766
and so the thing is is they weren't allowed to sell

6032
03:14:41,766 --> 03:14:43,233
but at that moment I wanted to buy

6033
03:14:43,300 --> 03:14:44,300
and I Learned later

6034
03:14:44,300 --> 03:14:45,866
that that thing was called a webinar

6035
03:14:45,866 --> 03:14:47,433
and I thought that was really cool

6036
03:14:47,600 --> 03:14:48,400
and so

6037
03:14:48,400 --> 03:14:50,333
that was more or less how I found out that I could

6038
03:14:50,333 --> 03:14:51,166
attend something for free

6039
03:14:51,166 --> 03:14:52,866
and then want to buy something afterwards

6040
03:14:52,866 --> 03:14:55,000
so I call this free consumption to upsell

6041
03:14:55,000 --> 03:14:56,333
so the reason this is a little bit different

6042
03:14:56,333 --> 03:14:58,566
is that the promise of the attraction

6043
03:14:58,566 --> 03:14:59,466
offer is to get people

6044
03:14:59,466 --> 03:15:01,466
and then liquidate the acquisition

6045
03:15:01,533 --> 03:15:02,800
because there's a delay here

6046
03:15:02,800 --> 03:15:06,066
it like it was loosey goosey uh

6047
03:15:06,066 --> 03:15:07,666
not that you can't liquidate within 30 days

6048
03:15:07,666 --> 03:15:10,466
so you can again this is why I was like anyways

6049
03:15:10,466 --> 03:15:11,866
it's a bonus for you guys alright

6050
03:15:11,866 --> 03:15:13,000
so let's get in the description

6051
03:15:13,000 --> 03:15:14,600
so I'll show this image real quick

6052
03:15:14,600 --> 03:15:16,466
so this is like a lot of times

6053
03:15:16,466 --> 03:15:17,133
the consumption

6054
03:15:17,133 --> 03:15:19,466
thing is 20 minutes long to five days long

6055
03:15:19,466 --> 03:15:21,100
so it could be one free video

6056
03:15:21,100 --> 03:15:22,100
it could be a PDF

6057
03:15:22,100 --> 03:15:24,666
it could be an audio it could be a live event

6058
03:15:24,666 --> 03:15:25,533
it could be a workshop

6059
03:15:25,533 --> 03:15:27,600
anything that someone's gonna consume a ton that

6060
03:15:27,600 --> 03:15:28,366
then they go

6061
03:15:28,366 --> 03:15:30,800
oh this thing's free they learn a bunch they say oh

6062
03:15:30,800 --> 03:15:32,766
I can do this and then they put money down

6063
03:15:32,800 --> 03:15:34,533
that's how it works fundamentally

6064
03:15:34,533 --> 03:15:39,366
you're selling or giving away a selling tool

6065
03:15:39,466 --> 03:15:43,566
now effective selling tools also provide value

6066
03:15:44,266 --> 03:15:46,400
bad selling tools are just pitches

6067
03:15:46,600 --> 03:15:48,566
don't do that let's dive in

6068
03:15:48,600 --> 03:15:50,566
so you give the free thing

6069
03:15:50,566 --> 03:15:52,000
that teaches and provides value

6070
03:15:52,000 --> 03:15:53,400
it breaks beliefs

6071
03:15:53,466 --> 03:15:55,800
that most people have around that particular thing

6072
03:15:55,800 --> 03:15:56,166
and so

6073
03:15:56,166 --> 03:15:58,166
the more knowledgeable you are about your customer

6074
03:15:58,166 --> 03:15:59,166
or your prospects

6075
03:15:59,166 --> 03:16:01,766
the more you can systematically break their beliefs

6076
03:16:01,866 --> 03:16:02,866
around uh

6077
03:16:02,866 --> 03:16:04,166
the opportunity that you have

6078
03:16:04,166 --> 03:16:06,000
or whatever service you provide

6079
03:16:06,000 --> 03:16:07,400
that people get hung up on

6080
03:16:07,400 --> 03:16:09,966
so think about this is like FAQ zone steroids

6081
03:16:10,133 --> 03:16:12,400
and you want to make an offer

6082
03:16:12,400 --> 03:16:14,100
that solves their next concern

6083
03:16:14,266 --> 03:16:16,800
or have embedded CTAs or calls to action

6084
03:16:16,800 --> 03:16:18,466
to take the next steps in the process

6085
03:16:18,600 --> 03:16:19,900
by the way

6086
03:16:19,900 --> 03:16:22,300
if you're watching this massive video training

6087
03:16:22,300 --> 03:16:24,066
and you want to scale your business

6088
03:16:24,066 --> 03:16:26,366
we're pretty good at it and so one

6089
03:16:26,366 --> 03:16:27,733
if you're a really big business

6090
03:16:27,733 --> 03:16:30,566
you can go to acquisition.com and hit the sell button

6091
03:16:30,566 --> 03:16:32,533
and we'd love to look at your business to invest in

6092
03:16:32,533 --> 03:16:33,800
if you're a smaller business

6093
03:16:33,800 --> 03:16:35,766
call it less than 10 million a year

6094
03:16:35,766 --> 03:16:37,366
then hit the scale button

6095
03:16:37,366 --> 03:16:39,466
and we'd love to help you scale from a million a month

6096
03:16:39,466 --> 03:16:41,000
to beyond $1 million a month

6097
03:16:41,000 --> 03:16:43,866
that's an embedded CTA that's how that works alright

6098
03:16:43,866 --> 03:16:45,200
and this works for books webinars

6099
03:16:45,200 --> 03:16:46,533
VSLS events workshops

6100
03:16:46,533 --> 03:16:47,966
video trainings like this

6101
03:16:47,966 --> 03:16:50,600
anything where you get people's undivided attention

6102
03:16:50,600 --> 03:16:53,200
now what this does is the process

6103
03:16:53,200 --> 03:16:54,700
reverse engineers trust

6104
03:16:54,933 --> 03:16:56,533
the best way for someone to know

6105
03:16:56,533 --> 03:16:58,466
that they're going to get value from you

6106
03:16:58,466 --> 03:16:59,600
when they pay you

6107
03:16:59,600 --> 03:17:02,066
is to give them value before they pay you

6108
03:17:02,333 --> 03:17:04,000
mind blowing I know

6109
03:17:04,000 --> 03:17:04,600
and so

6110
03:17:04,600 --> 03:17:07,533
I believe that education is the core of advertising

6111
03:17:07,533 --> 03:17:08,666
it's the core of marketing

6112
03:17:08,666 --> 03:17:10,066
is that you help people shift

6113
03:17:10,066 --> 03:17:11,000
their beliefs around something

6114
03:17:11,000 --> 03:17:12,966
so that they make a decision to buy

6115
03:17:13,100 --> 03:17:15,466
and so the amount of time that you need is in direct

6116
03:17:15,466 --> 03:17:18,033
proportion to the price of the thing you sell

6117
03:17:18,133 --> 03:17:19,700
how cool the audience is

6118
03:17:19,700 --> 03:17:23,200
and what that price is relative to their buying power

6119
03:17:23,200 --> 03:17:25,600
so for example if I'm selling consumers

6120
03:17:25,966 --> 03:17:28,333
uh if I have a 20 dollar thing

6121
03:17:28,333 --> 03:17:30,900
I might be able to sell that in a seven second ad

6122
03:17:31,366 --> 03:17:35,766
direct to purchase if I sell a 7,000 dollar thing

6123
03:17:35,766 --> 03:17:37,500
I might also be able to sell that

6124
03:17:37,500 --> 03:17:38,800
off of a 30 second ad

6125
03:17:38,800 --> 03:17:41,633
to a 50 million dollar a year business owner

6126
03:17:41,700 --> 03:17:42,400
so it depends

6127
03:17:42,400 --> 03:17:44,800
it's the price relative to their buying power

6128
03:17:44,800 --> 03:17:47,100
but if you're selling a 500 dollar thing

6129
03:17:47,133 --> 03:17:48,466
if it's a physical product

6130
03:17:48,466 --> 03:17:50,366
maybe you can get it off of an ad

6131
03:17:50,700 --> 03:17:51,866
most likely above that

6132
03:17:51,866 --> 03:17:53,300
you start having to add in phone sales

6133
03:17:53,300 --> 03:17:55,100
and things like that in order to close deals

6134
03:17:55,100 --> 03:17:58,566
now to be clear it is my belief that

6135
03:17:58,666 --> 03:17:59,400
every customer

6136
03:17:59,400 --> 03:18:01,166
needs a certain amount of information to buy

6137
03:18:01,366 --> 03:18:02,933
and so Tesla for example

6138
03:18:02,933 --> 03:18:04,133
sells their cars on the internet

6139
03:18:04,133 --> 03:18:05,900
you can buy the car online

6140
03:18:05,966 --> 03:18:06,500
and so

6141
03:18:06,500 --> 03:18:11,466
with enough brand goodwill and enough people making

6142
03:18:11,900 --> 03:18:13,500
that are aware of the products

6143
03:18:13,500 --> 03:18:14,666
and the reviews that you've had

6144
03:18:14,666 --> 03:18:17,966
the word of mouth you can facilitate a 30

6145
03:18:17,966 --> 03:18:18,733
50 hundred

6146
03:18:18,733 --> 03:18:21,666
thousand dollar plus sale with zero salespeople

6147
03:18:21,666 --> 03:18:24,766
but for every person that opts in on the Tesla site

6148
03:18:24,766 --> 03:18:27,533
if they also had 1,000 people calling

6149
03:18:27,533 --> 03:18:28,666
all the people who didn't

6150
03:18:28,666 --> 03:18:29,800
follow through with the purchase

6151
03:18:29,800 --> 03:18:31,600
they would make even more money

6152
03:18:32,066 --> 03:18:33,533
and so the idea is that marketing

6153
03:18:33,533 --> 03:18:34,966
gets as many people over the line as you can

6154
03:18:34,966 --> 03:18:36,366
and for everybody who's not over the line

6155
03:18:36,366 --> 03:18:37,766
sales fills the gaps

6156
03:18:37,766 --> 03:18:39,733
but it's not that sales and marketing are different

6157
03:18:39,733 --> 03:18:41,333
they are the same continuum

6158
03:18:41,333 --> 03:18:43,900
and so this free consumption thing is basically just

6159
03:18:43,933 --> 03:18:45,400
zooming more people along

6160
03:18:45,400 --> 03:18:47,500
think about it like microwaving the prospect

6161
03:18:47,500 --> 03:18:50,000
so it's like in two days you go from

6162
03:18:50,000 --> 03:18:51,300
I don't know who this guy is to

6163
03:18:51,300 --> 03:18:52,600
I absolutely trust them

6164
03:18:52,600 --> 03:18:56,233
and so I Learned this from some interview I heard uh

6165
03:18:56,300 --> 03:18:59,800
from this sounds bad but a guy who had a Ponzi scheme

6166
03:18:59,866 --> 03:19:00,800
uh for investments

6167
03:19:00,800 --> 03:19:01,700
but I I still

6168
03:19:01,700 --> 03:19:04,400
I love understanding what they do for persuasion

6169
03:19:04,400 --> 03:19:06,966
because they use great skills for evil

6170
03:19:06,966 --> 03:19:09,133
we wanna use those great skills for good

6171
03:19:09,133 --> 03:19:11,100
and so he found that he could

6172
03:19:11,100 --> 03:19:12,466
get someone to invest many

6173
03:19:12,466 --> 03:19:15,000
many millions of dollars with him within four hours

6174
03:19:15,000 --> 03:19:17,166
and I thought that that was fascinating

6175
03:19:17,300 --> 03:19:19,466
uh just and again it depends on the prospect

6176
03:19:19,466 --> 03:19:20,700
who who are we talking to right

6177
03:19:20,700 --> 03:19:21,566
if you don't have $1 million

6178
03:19:21,566 --> 03:19:22,600
then you would have no idea

6179
03:19:22,600 --> 03:19:25,566
but that's it really depends on who you're talking to

6180
03:19:25,566 --> 03:19:25,966
alright

6181
03:19:25,966 --> 03:19:28,533
so I like to use this analogy of the bigger the plane

6182
03:19:28,533 --> 03:19:29,900
the longer the runway and so

6183
03:19:29,900 --> 03:19:31,566
if you wanna sell a really expensive thing

6184
03:19:31,566 --> 03:19:33,466
relative to what someone has in terms of money

6185
03:19:33,466 --> 03:19:34,866
you're gonna need a longer

6186
03:19:34,900 --> 03:19:35,933
in order to earn their trust

6187
03:19:35,933 --> 03:19:38,666
people don't sell timeshares off of a free ebook

6188
03:19:38,666 --> 03:19:39,700
they do

6189
03:19:39,800 --> 03:19:42,500
by telling them to fly down for a cruise for 7 days

6190
03:19:42,500 --> 03:19:43,500
and at the end of the 7 days

6191
03:19:43,500 --> 03:19:45,933
they get them to buy all sorts of stuff right

6192
03:19:45,933 --> 03:19:48,166
because after that period of time they trust you

6193
03:19:48,266 --> 03:19:50,500
so that is the description that is how it works

6194
03:19:50,500 --> 03:19:52,866
that's why we do it now let me give you some examples

6195
03:19:52,900 --> 03:19:55,900
so this is a really common one that happens in the uh

6196
03:19:55,900 --> 03:19:58,600
chiropractor space so they have the diabetic dinners

6197
03:19:58,600 --> 03:19:59,533
neuropathy X

6198
03:19:59,533 --> 03:20:01,800
y Z dinners they give these free dinners away

6199
03:20:02,100 --> 03:20:04,166
so they sometimes they do steak dinners right

6200
03:20:04,166 --> 03:20:06,066
and so what they do is they have a 90 minute

6201
03:20:06,066 --> 03:20:07,800
presentation during a three hour dinner

6202
03:20:07,800 --> 03:20:09,866
that sells a $50 to a hundred dollar consult

6203
03:20:09,866 --> 03:20:11,200
which sounds like why would you waste that

6204
03:20:11,200 --> 03:20:13,366
time after they come in for the consult

6205
03:20:13,466 --> 03:20:15,200
they then sell them a 5,000

6206
03:20:15,200 --> 03:20:17,933
10,000 dollar year long health and wellness program

6207
03:20:17,933 --> 03:20:20,200
with supplements and nutrition protocols to go with it

6208
03:20:20,200 --> 03:20:21,333
and so the benchmarks there are

6209
03:20:21,333 --> 03:20:24,466
you convert 25% of the room into the 15 dollar thing

6210
03:20:24,466 --> 03:20:25,766
and then you convert a third of people

6211
03:20:25,766 --> 03:20:26,900
who show up for the appointment

6212
03:20:26,900 --> 03:20:28,300
into the five to 10,000 dollar thing

6213
03:20:28,300 --> 03:20:30,000
so you do the math there it's basically

6214
03:20:30,000 --> 03:20:30,533
you're converting

6215
03:20:30,533 --> 03:20:31,733
somewhere in the neighborhood of like 10

6216
03:20:31,733 --> 03:20:33,366
ish percent um

6217
03:20:33,366 --> 03:20:37,566
of the people who show up for the dinner

6218
03:20:37,933 --> 03:20:40,366
fundamentally end up buying the expensive thing

6219
03:20:40,366 --> 03:20:41,800
so if you have 100 people show up for the dinner

6220
03:20:41,800 --> 03:20:42,966
and you sell 10 at 10 k

6221
03:20:42,966 --> 03:20:44,233
you make 100 grand from a dinner

6222
03:20:44,266 --> 03:20:46,266
this is super common in the education space

6223
03:20:46,266 --> 03:20:47,966
so there's these three to five day challenges

6224
03:20:47,966 --> 03:20:49,766
these virtual summits things like that

6225
03:20:49,766 --> 03:20:52,600
and so these are you know day 1 you give

6226
03:20:52,600 --> 03:20:55,466
day 2 you give slash ask day 3 you repitch slash give

6227
03:20:55,466 --> 03:20:57,166
that is the very standard structure

6228
03:20:57,266 --> 03:20:59,766
and so in the challenge structure it's give give

6229
03:20:59,766 --> 03:21:00,533
give pitch

6230
03:21:00,533 --> 03:21:04,066
repitch with proof if you have a very high ticket price

6231
03:21:04,100 --> 03:21:06,500
you can push people to a phone call

6232
03:21:06,733 --> 03:21:08,400
from the 5 day thing

6233
03:21:08,400 --> 03:21:10,300
to get someone to finalize the transaction

6234
03:21:10,300 --> 03:21:12,266
get details from a salesperson

6235
03:21:12,400 --> 03:21:14,200
and so the goal of these challenges

6236
03:21:14,200 --> 03:21:15,700
these events these multi day things

6237
03:21:15,700 --> 03:21:16,500
these dinners

6238
03:21:16,600 --> 03:21:18,500
is to break the core beliefs of the prospect

6239
03:21:18,500 --> 03:21:20,666
while you deliver on the tactical promise

6240
03:21:20,800 --> 03:21:21,766
that you made at the beginning

6241
03:21:21,766 --> 03:21:23,900
and or the headline of the promotion you had

6242
03:21:23,900 --> 03:21:25,000
the benchmark that I have

6243
03:21:25,000 --> 03:21:25,766
if it's virtual

6244
03:21:25,766 --> 03:21:28,633
is that you convert 2 to 5% of people who opted in

6245
03:21:28,766 --> 03:21:30,133
not to schedule show everything down

6246
03:21:30,133 --> 03:21:30,766
but just if you're saying

6247
03:21:30,766 --> 03:21:32,800
I got 1,000 options for my virtual thing

6248
03:21:32,800 --> 03:21:36,900
if I can convert uh 2% of those people at a you know

6249
03:21:36,900 --> 03:21:39,733
expensive price then I will offset the cost

6250
03:21:39,733 --> 03:21:40,500
now if you're like wait

6251
03:21:40,500 --> 03:21:42,066
mine's not cheap it depends by market

6252
03:21:42,066 --> 03:21:43,600
but if you're going really mass market

6253
03:21:43,766 --> 03:21:44,866
really cheap options

6254
03:21:44,866 --> 03:21:46,333
it's 2 to 5% if you're in a super niche

6255
03:21:46,333 --> 03:21:47,333
it should be way higher than that

6256
03:21:47,333 --> 03:21:48,266
that's the basically

6257
03:21:48,266 --> 03:21:49,400
that's the worst numbers you can have

6258
03:21:49,400 --> 03:21:51,566
it only gets better if you have more brand

6259
03:21:51,600 --> 03:21:53,400
more warm audience and more uh

6260
03:21:53,400 --> 03:21:55,133
more niche down in terms of what

6261
03:21:55,133 --> 03:21:57,066
what you're selling and who you're selling to

6262
03:21:57,333 --> 03:21:59,400
so this is an example of something might look like

6263
03:21:59,400 --> 03:22:02,133
so on Monday and again you can compress this

6264
03:22:02,133 --> 03:22:04,066
like you could make this into one day

6265
03:22:04,066 --> 03:22:05,200
rather than five days

6266
03:22:05,200 --> 03:22:07,500
it all just like this is basically the the

6267
03:22:07,500 --> 03:22:09,100
the stuff that's going to get covered

6268
03:22:09,100 --> 03:22:11,566
typically in a process this could be a 90 minute video

6269
03:22:11,566 --> 03:22:12,533
everything's just about how much

6270
03:22:12,533 --> 03:22:13,800
and how many examples you're going to give

6271
03:22:13,966 --> 03:22:16,866
so Monday it's like our story why it's like your story

6272
03:22:16,866 --> 03:22:18,066
why we can help what we're

6273
03:22:18,066 --> 03:22:19,500
gonna cover and our perspective shift

6274
03:22:19,500 --> 03:22:20,566
about how your approach to solving

6275
03:22:20,566 --> 03:22:21,866
problems is different how our

6276
03:22:21,866 --> 03:22:24,033
our approach is different than what you've had before

6277
03:22:24,300 --> 03:22:26,933
Tuesday it's gonna be second valuable negative value

6278
03:22:26,933 --> 03:22:29,300
which is regarding their ability or insecurity

6279
03:22:29,300 --> 03:22:30,733
it's like what are they most afraid of

6280
03:22:30,733 --> 03:22:32,733
what are the thing that they're most concerned about

6281
03:22:32,733 --> 03:22:33,933
the next one is gonna be

6282
03:22:33,933 --> 03:22:35,600
the second thing that they're also concerned about

6283
03:22:35,600 --> 03:22:37,900
this is typically an excuse outside of themselves

6284
03:22:37,900 --> 03:22:39,266
so that's like uh

6285
03:22:39,266 --> 03:22:40,666
one is I don't think I can do it

6286
03:22:40,666 --> 03:22:41,100
something is

6287
03:22:41,100 --> 03:22:43,266
this other thing is going to block me from doing it

6288
03:22:43,300 --> 03:22:45,266
alright the next one is gonna be met

6289
03:22:45,266 --> 03:22:45,700
you mention

6290
03:22:45,700 --> 03:22:47,700
your core offer is gonna be coming the next day

6291
03:22:47,700 --> 03:22:48,466
and then of course

6292
03:22:48,466 --> 03:22:50,766
you pitch and then you repitch with some sort of QandA

6293
03:22:50,766 --> 03:22:51,766
which you add more proof in

6294
03:22:51,766 --> 03:22:54,000
that's when you invite past success stories on

6295
03:22:54,000 --> 03:22:54,900
you do mini case studies

6296
03:22:54,900 --> 03:22:56,733
and then you restack the offer alright

6297
03:22:56,733 --> 03:22:58,966
so this is fundamentally how it works now

6298
03:22:59,466 --> 03:23:00,733
if you're a beginner

6299
03:23:00,733 --> 03:23:03,833
this is like a this is flashing Vegas lights OK

6300
03:23:04,866 --> 03:23:07,000
we so by the time you're seeing this

6301
03:23:07,000 --> 03:23:11,166
we should have done a big school launch for people

6302
03:23:11,500 --> 03:23:13,066
this is more or less

6303
03:23:13,066 --> 03:23:15,600
what I teach all the beginners to do

6304
03:23:15,600 --> 03:23:16,000
and you're like wait

6305
03:23:16,000 --> 03:23:18,900
I thought it was complex if you wanna do it at scale

6306
03:23:18,900 --> 03:23:21,000
it's complex if you wanna do it one on one

6307
03:23:21,000 --> 03:23:23,633
it's the simplest way to sell so hear me out

6308
03:23:25,000 --> 03:23:29,000
you could do this with one person at a time

6309
03:23:29,366 --> 03:23:31,233
and so you could say hey

6310
03:23:31,333 --> 03:23:33,666
instead of calling it a 3 to five day challenge

6311
03:23:33,700 --> 03:23:36,433
say I will spend five days with you

6312
03:23:36,466 --> 03:23:37,366
doesn't have to be full days

6313
03:23:37,366 --> 03:23:38,566
can be five one hour sessions

6314
03:23:38,566 --> 03:23:42,033
you get five hours of my time to help you get this goal

6315
03:23:42,133 --> 03:23:44,500
insert goal on the first day

6316
03:23:44,500 --> 03:23:46,466
you're going to frame the fact that

6317
03:23:46,466 --> 03:23:47,166
you're going to make an offer

6318
03:23:47,166 --> 03:23:48,200
at the end you say hey

6319
03:23:48,300 --> 03:23:48,933
before we get going

6320
03:23:48,933 --> 03:23:52,066
is it okay if at the end of this whole thing um

6321
03:23:52,166 --> 03:23:53,600
I just make you an offer of what it would look like

6322
03:23:53,600 --> 03:23:54,666
to work with me long term

6323
03:23:54,666 --> 03:23:57,600
if they say no then don't do the rest of it right

6324
03:23:57,866 --> 03:23:59,466
but during that process

6325
03:23:59,466 --> 03:24:01,200
you should understand what their goals are

6326
03:24:01,200 --> 03:24:01,900
what the reasons

6327
03:24:01,900 --> 03:24:04,700
that the obstacles have gotten the way for them um

6328
03:24:05,266 --> 03:24:06,400
and basically

6329
03:24:06,400 --> 03:24:08,833
all the friction that they've had to deal with uh

6330
03:24:08,866 --> 03:24:09,500
in the past

6331
03:24:09,500 --> 03:24:11,266
so this is basically like a a closure framework

6332
03:24:11,266 --> 03:24:11,900
clarify with their

6333
03:24:11,900 --> 03:24:13,366
label them problem over their past pain

6334
03:24:13,366 --> 03:24:14,533
and then sell them the vacation

6335
03:24:14,533 --> 03:24:15,566
of the vacation

6336
03:24:15,566 --> 03:24:16,700
being what we're gonna cope together

6337
03:24:16,700 --> 03:24:18,066
in the next 5 days uh

6338
03:24:18,066 --> 03:24:19,333
explain away whatever their concerns are

6339
03:24:19,333 --> 03:24:21,800
reinforce decision and then you frame the sale alright

6340
03:24:21,800 --> 03:24:23,866
sorry that was fast you can watch it again on slow

6341
03:24:23,866 --> 03:24:26,700
that's what you would do on the first day the next two

6342
03:24:26,700 --> 03:24:28,733
you know two three days whatever it is uh

6343
03:24:28,733 --> 03:24:30,200
you then overcome the main beliefs

6344
03:24:30,200 --> 03:24:30,766
that they're gonna have

6345
03:24:30,766 --> 03:24:31,800
about the things that are gonna stop them

6346
03:24:31,800 --> 03:24:33,133
you're gonna show them one on one

6347
03:24:33,133 --> 03:24:35,000
and at the end you say hey

6348
03:24:35,500 --> 03:24:36,700
ask for a referral

6349
03:24:36,700 --> 03:24:39,333
anybody else who so you can recap it hey

6350
03:24:39,333 --> 03:24:40,566
was this great then

6351
03:24:40,566 --> 03:24:41,766
you can ask for other people

6352
03:24:41,766 --> 03:24:44,133
who would like to go through this free thing with you

6353
03:24:44,133 --> 03:24:46,266
and then finally you can make your offer hey

6354
03:24:46,266 --> 03:24:47,700
remember that thing I told you about again

6355
03:24:47,700 --> 03:24:48,966
do you mind if I tell you about it now

6356
03:24:48,966 --> 03:24:50,133
now if you're a super beginner

6357
03:24:50,133 --> 03:24:51,800
you can just ask him what do you think

6358
03:24:51,800 --> 03:24:53,366
working with me for $3,000 per year

6359
03:24:53,366 --> 03:24:54,300
would look like to you

6360
03:24:54,300 --> 03:24:55,933
then they can tell you the offer and then you can say

6361
03:24:55,933 --> 03:24:57,866
yeah that sounds good let's do that right

6362
03:24:57,866 --> 03:24:58,866
if you have no idea

6363
03:24:58,866 --> 03:25:00,266
if you have 20 of those conversations

6364
03:25:00,266 --> 03:25:01,166
you're gonna have a pretty decent idea

6365
03:25:01,166 --> 03:25:02,533
and then you can start making the offer

6366
03:25:02,533 --> 03:25:05,266
so this is the easiest way

6367
03:25:05,266 --> 03:25:06,866
because if you suck at sales

6368
03:25:06,933 --> 03:25:08,133
it's way easier to sell

6369
03:25:08,133 --> 03:25:09,733
when you spend five hours with someone building

6370
03:25:09,733 --> 03:25:12,133
building value this is exactly what I did

6371
03:25:12,133 --> 03:25:13,900
when I started my first business

6372
03:25:13,933 --> 03:25:15,633
is I told people to donate

6373
03:25:15,700 --> 03:25:18,333
500 to 1,000 dollars to the charity of their choice

6374
03:25:18,333 --> 03:25:19,766
and I worked with them for 12 weeks

6375
03:25:19,800 --> 03:25:21,766
those 12 weeks was one time a week

6376
03:25:21,766 --> 03:25:23,266
for the 12 weeks and then I you know

6377
03:25:23,266 --> 03:25:24,900
pitch them at the end for for staying more stuff

6378
03:25:24,900 --> 03:25:25,666
now I Learned

6379
03:25:25,666 --> 03:25:26,766
now I should have pitched them halfway through

6380
03:25:26,766 --> 03:25:28,133
and I probably could have done it in six weeks

6381
03:25:28,133 --> 03:25:30,366
lots of things I Learned and so here

6382
03:25:30,366 --> 03:25:32,133
there's just X amount of time you need to spend

6383
03:25:32,133 --> 03:25:34,200
and you can microwave it with the prospect

6384
03:25:34,200 --> 03:25:35,800
you can just do it in five days

6385
03:25:35,800 --> 03:25:36,766
rather than five weeks

6386
03:25:36,766 --> 03:25:38,366
by just compressing the time period

6387
03:25:39,100 --> 03:25:40,600
so these are might be headlines

6388
03:25:40,600 --> 03:25:42,000
for whatever your free thing is

6389
03:25:42,000 --> 03:25:42,866
it's like free

6390
03:25:42,866 --> 03:25:44,866
find your Perfect Product Entrepreneurship challenge

6391
03:25:44,866 --> 03:25:46,866
so you could say if you're a beginner hey

6392
03:25:46,866 --> 03:25:47,866
I'll spend 5 hours with you

6393
03:25:47,866 --> 03:25:49,166
help you find your perfect product

6394
03:25:50,533 --> 03:25:52,400
what happens when someone has the perfect product

6395
03:25:52,500 --> 03:25:53,766
they're gonna wanna learn how to advertise

6396
03:25:53,766 --> 03:25:54,900
they're gonna wanna learn how to put it on a website

6397
03:25:54,900 --> 03:25:55,733
they're gonna learn how to

6398
03:25:55,733 --> 03:25:56,666
how to manage inventory

6399
03:25:56,666 --> 03:25:57,533
and all the other things that go with it

6400
03:25:57,533 --> 03:25:58,866
when you solve one problem

6401
03:25:58,866 --> 03:26:00,000
you create others

6402
03:26:00,266 --> 03:26:02,400
which you can solve in exchange for money

6403
03:26:02,400 --> 03:26:03,133
and they will believe you

6404
03:26:03,133 --> 03:26:05,000
because you fulfilled your first promise

6405
03:26:05,133 --> 03:26:06,133
if you're a marketing agency

6406
03:26:06,133 --> 03:26:08,000
it could be free five day find your niche agency

6407
03:26:08,000 --> 03:26:08,300
sounds like

6408
03:26:08,300 --> 03:26:09,966
if I was trying to help people start agencies

6409
03:26:09,966 --> 03:26:11,200
a lot of people like who do I sell to

6410
03:26:11,200 --> 03:26:12,866
it's like alright by the end of the five days

6411
03:26:12,866 --> 03:26:13,800
you're gonna know exactly who you're gonna

6412
03:26:13,800 --> 03:26:15,066
sell to what else you're gonna need

6413
03:26:15,066 --> 03:26:16,066
you're gonna learn how to generate leads

6414
03:26:16,066 --> 03:26:16,800
you're gonna learn how to sell

6415
03:26:16,800 --> 03:26:18,533
you're gonna learn how to price all these other things

6416
03:26:18,533 --> 03:26:21,500
and so each of these things a lead magnet

6417
03:26:21,500 --> 03:26:22,566
fundamentally what this is

6418
03:26:22,566 --> 03:26:26,000
is a big lead magnet that gets people to opt in

6419
03:26:26,100 --> 03:26:28,066
and because it's in a short time period

6420
03:26:28,066 --> 03:26:29,900
people like the fact that it's fast

6421
03:26:29,900 --> 03:26:30,966
they're gonna get this result

6422
03:26:30,966 --> 03:26:32,400
you can increase their perceived likelihood

6423
03:26:32,400 --> 03:26:33,900
achievement by saying it's one on one

6424
03:26:33,966 --> 03:26:34,900
you can

6425
03:26:35,466 --> 03:26:38,766
add scale by adding technology and virtual summits

6426
03:26:38,766 --> 03:26:40,666
and more automations and things like that

6427
03:26:40,666 --> 03:26:43,166
and at the the Max Max leverage version of this is

6428
03:26:43,166 --> 03:26:44,766
you run these things on autopilot

6429
03:26:44,766 --> 03:26:46,166
every hour and everything

6430
03:26:46,166 --> 03:26:48,233
is automated and personalized to the person

6431
03:26:48,300 --> 03:26:48,900
that's what

6432
03:26:48,900 --> 03:26:51,466
the businesses that do $100 million a year are doing

6433
03:26:52,266 --> 03:26:53,866
but if you're starting out

6434
03:26:53,866 --> 03:26:55,000
you don't have to worry about shop rates

6435
03:26:55,000 --> 03:26:56,166
cause you can just text the people

6436
03:26:56,166 --> 03:26:57,800
and see what time they wanna meet alright

6437
03:26:57,800 --> 03:27:00,433
you can make this very easy weight loss

6438
03:27:00,533 --> 03:27:01,733
uh a plateau buster

6439
03:27:01,733 --> 03:27:03,733
you basically walk them through a 5 day plateau buster

6440
03:27:03,733 --> 03:27:05,000
what they need to do for eating and

6441
03:27:05,000 --> 03:27:06,966
and drinking and whatever else addiction

6442
03:27:06,966 --> 03:27:09,200
five days to substance free challenge pain

6443
03:27:09,200 --> 03:27:11,333
5 day pain release life coach

6444
03:27:11,333 --> 03:27:12,600
five days to get unstuck

6445
03:27:12,600 --> 03:27:14,100
it doesn't matter whatever it is

6446
03:27:14,100 --> 03:27:16,100
you can usually deliver a tremendous amount of value

6447
03:27:16,100 --> 03:27:18,000
in five hours of time

6448
03:27:18,000 --> 03:27:21,800
or 90 minutes times five of time and this works

6449
03:27:21,800 --> 03:27:23,166
so the reason if you're like me

6450
03:27:23,366 --> 03:27:24,400
why didn't you put this in the book

6451
03:27:24,400 --> 03:27:25,166
cause it's really long

6452
03:27:25,166 --> 03:27:26,766
and there's a lot of stuff to it alright

6453
03:27:26,766 --> 03:27:28,800
and so webinars are an example of this

6454
03:27:28,800 --> 03:27:30,933
is just compressed into 90 minutes

6455
03:27:30,933 --> 03:27:31,900
so instead of you know

6456
03:27:31,900 --> 03:27:35,066
day one day two day three like day one is origin story

6457
03:27:35,066 --> 03:27:36,400
which you just put in the first 15 minutes

6458
03:27:36,400 --> 03:27:38,000
day two is the big obstacle

6459
03:27:38,000 --> 03:27:38,933
that most people are gonna count

6460
03:27:38,933 --> 03:27:41,133
you put that uh in the next 15 minutes

6461
03:27:41,133 --> 03:27:43,200
you basically chunk your way down to 60 minutes

6462
03:27:43,200 --> 03:27:44,666
45 to 60 minutes being the

6463
03:27:44,666 --> 03:27:45,800
the kind of the value piece

6464
03:27:45,800 --> 03:27:47,600
and then the next 30 being the

6465
03:27:47,600 --> 03:27:50,266
the pitch with the stack and everything else alright

6466
03:27:50,266 --> 03:27:51,900
so the benchmark for most webinars

6467
03:27:51,900 --> 03:27:54,466
is converting 10% of the people who show up live

6468
03:27:55,100 --> 03:27:56,900
alright strategy call uh

6469
03:27:56,900 --> 03:27:58,800
this is one where I want to be really clear

6470
03:27:58,800 --> 03:28:00,200
a lot of people have kind of butchered

6471
03:28:00,200 --> 03:28:01,266
the idea of a strategy call

6472
03:28:01,266 --> 03:28:01,900
because

6473
03:28:01,900 --> 03:28:04,100
all sales calls are just considered strategy calls now

6474
03:28:04,100 --> 03:28:06,300
but you can relive

6475
03:28:06,300 --> 03:28:09,333
you can get this by telling people that you will not

6476
03:28:09,333 --> 03:28:11,233
ask for their card on the phone

6477
03:28:11,300 --> 03:28:14,133
and this works very sexually um

6478
03:28:14,133 --> 03:28:16,200
if you mean it and then what you do is

6479
03:28:16,200 --> 03:28:17,900
you just use your qualification call

6480
03:28:18,200 --> 03:28:19,466
as the strategy call

6481
03:28:20,066 --> 03:28:22,166
and so you do qualify what problems they have

6482
03:28:22,166 --> 03:28:23,400
and you should be able to provide value

6483
03:28:23,400 --> 03:28:24,366
in terms of clarifying

6484
03:28:24,366 --> 03:28:25,733
what next things are concerning their business

6485
03:28:25,733 --> 03:28:26,866
whatever it is if it's a B to B offer

6486
03:28:26,866 --> 03:28:27,866
it's B to C offer it's

6487
03:28:27,866 --> 03:28:29,600
what thing is preventing them from hitting their goals

6488
03:28:29,733 --> 03:28:31,433
and at that point you would then be able to

6489
03:28:31,466 --> 03:28:33,700
reasonably and ethically qualify them for a sales call

6490
03:28:33,700 --> 03:28:35,100
but now that point you have provided value

6491
03:28:35,100 --> 03:28:36,300
and then you can make the offer

6492
03:28:36,300 --> 03:28:38,100
just being hop on a call with the sales guy

6493
03:28:38,100 --> 03:28:40,366
now you wouldn't say that you would say this is John

6494
03:28:40,366 --> 03:28:40,933
John's amazing

6495
03:28:40,933 --> 03:28:43,100
he cured cancer and he you also have cancer

6496
03:28:43,100 --> 03:28:44,866
don't do any of that but you get the ideas

6497
03:28:44,866 --> 03:28:46,433
you wanna edify the salesman

6498
03:28:46,566 --> 03:28:48,133
and say that he's helped people just like them

6499
03:28:48,133 --> 03:28:49,200
get to where they wanna go

6500
03:28:49,200 --> 03:28:49,766
and you wanna

6501
03:28:49,766 --> 03:28:52,000
ideally tie that to people who've done that recently

6502
03:28:52,000 --> 03:28:53,433
using this specific system

6503
03:28:53,500 --> 03:28:54,133
and for this

6504
03:28:54,133 --> 03:28:56,066
you wanna convert 25% or more of the people who have

6505
03:28:56,066 --> 03:28:56,900
hit on these calls

6506
03:28:57,766 --> 03:28:59,233
alright important points

6507
03:28:59,500 --> 03:29:00,266
so uh

6508
03:29:00,266 --> 03:29:01,966
the three beliefs that we always have to overcome

6509
03:29:01,966 --> 03:29:02,733
with every single sale

6510
03:29:02,733 --> 03:29:05,666
no matter what is people point to circumstances

6511
03:29:05,666 --> 03:29:07,133
they say life should be easy and it isn't

6512
03:29:07,133 --> 03:29:08,066
and they get upset about it

6513
03:29:08,066 --> 03:29:09,333
and so it's like I don't have the money

6514
03:29:09,333 --> 03:29:10,200
which is circumstances thing

6515
03:29:10,200 --> 03:29:11,600
cause it means that they're not being resourceful

6516
03:29:11,600 --> 03:29:13,366
they say I don't have the time when really I really

6517
03:29:13,366 --> 03:29:14,766
it just means that they're not prioritizing

6518
03:29:14,766 --> 03:29:15,800
everybody's the same amount of time

6519
03:29:15,800 --> 03:29:18,333
and so we have to get them to take the finger of blame

6520
03:29:18,333 --> 03:29:19,166
and point it towards themselves

6521
03:29:19,166 --> 03:29:20,166
and say it's up to me

6522
03:29:20,166 --> 03:29:21,166
it's not about my circumstances

6523
03:29:21,166 --> 03:29:22,533
it's about my ability to be resourceful

6524
03:29:22,533 --> 03:29:24,300
my ability to prioritize right

6525
03:29:24,300 --> 03:29:26,500
and so that is what belief number one

6526
03:29:26,500 --> 03:29:27,566
you have to break for people is

6527
03:29:27,566 --> 03:29:28,700
it's not the outside world

6528
03:29:28,700 --> 03:29:31,300
it's me alright the next one is

6529
03:29:31,466 --> 03:29:32,466
other people should treat me

6530
03:29:32,466 --> 03:29:33,300
the way I want them to be treated

6531
03:29:33,300 --> 03:29:34,666
and everyone should do what I tell them to

6532
03:29:34,666 --> 03:29:36,133
that doesn't happen and so we have to say

6533
03:29:36,133 --> 03:29:38,166
you are actually the one responsible for your own life

6534
03:29:38,166 --> 03:29:39,533
and so it's not your business partner

6535
03:29:39,533 --> 03:29:40,866
it's not your spouse it's not your dog

6536
03:29:40,866 --> 03:29:42,700
it's not your grandma it's not your employees

6537
03:29:42,700 --> 03:29:44,533
it's you who are the one who are in control

6538
03:29:44,533 --> 03:29:45,866
and so instead of asking for permission

6539
03:29:45,866 --> 03:29:47,000
you need to be asking for support

6540
03:29:47,000 --> 03:29:48,200
and so that's fundamentally the belief

6541
03:29:48,200 --> 03:29:49,700
that we have to help them break in

6542
03:29:49,700 --> 03:29:51,533
this thing that other people are gonna stop them

6543
03:29:51,533 --> 03:29:52,266
so if someone says oh

6544
03:29:52,266 --> 03:29:53,866
I wouldn't be able to do this thing because of my kids

6545
03:29:53,866 --> 03:29:55,533
we have to basically reorient that and say hey

6546
03:29:55,533 --> 03:29:57,100
this actually how it's gonna help your kids hey

6547
03:29:57,100 --> 03:29:58,333
I can't do this because of my spouse

6548
03:29:58,333 --> 03:29:58,666
actually

6549
03:29:58,666 --> 03:29:59,766
it's gonna help your relationship with your spouse

6550
03:29:59,766 --> 03:30:01,600
we have to reframe what they say

6551
03:30:01,600 --> 03:30:03,400
and that would be the second big belief

6552
03:30:03,600 --> 03:30:05,400
the third big belief is gonna be self

6553
03:30:05,533 --> 03:30:08,066
which is I can't do this I'm afraid right

6554
03:30:08,066 --> 03:30:09,200
what happens if I fail

6555
03:30:09,200 --> 03:30:11,466
and so we want to get them to confront the decision

6556
03:30:11,466 --> 03:30:12,300
give them the variables

6557
03:30:12,300 --> 03:30:13,733
that it takes to make a logical decision

6558
03:30:13,733 --> 03:30:15,400
and make them feel that this is actually a decision

6559
03:30:15,400 --> 03:30:16,566
that is not rushed at all

6560
03:30:16,566 --> 03:30:18,333
it's something that they've been making a long time ago

6561
03:30:18,333 --> 03:30:20,500
today is just the first day they're taking action on it

6562
03:30:21,866 --> 03:30:24,000
and so when breaking beliefs

6563
03:30:24,100 --> 03:30:26,066
you wanna teach concepts not tactics

6564
03:30:26,066 --> 03:30:27,866
this is a big mess up that most people do

6565
03:30:27,866 --> 03:30:29,233
when they have this free value thing

6566
03:30:29,300 --> 03:30:31,933
the reason is that everyone gets value from concepts

6567
03:30:31,933 --> 03:30:34,066
only executors get value from tactics

6568
03:30:34,933 --> 03:30:38,366
so summary learn how to break the beliefs

6569
03:30:38,366 --> 03:30:41,233
which by the way the way you break a belief is you say

6570
03:30:41,400 --> 03:30:42,866
this is what you used to believe

6571
03:30:42,866 --> 03:30:45,400
this is why it's wrong this is what's right

6572
03:30:45,400 --> 03:30:48,300
this is why it's right proof 5 steps

6573
03:30:48,700 --> 03:30:50,266
this is what you believe this is why it's wrong

6574
03:30:50,266 --> 03:30:52,266
this is what's right this is why it's right proof

6575
03:30:52,466 --> 03:30:54,133
so provide excessive value

6576
03:30:54,133 --> 03:30:56,466
teaching concepts that underpin whatever you sell

6577
03:30:56,600 --> 03:30:58,000
this is an education process

6578
03:30:58,000 --> 03:30:59,633
to create your ideal prospect

6579
03:30:59,700 --> 03:31:02,733
and ward off people who are not your ideal prospect

6580
03:31:02,733 --> 03:31:04,566
so if you get people in and you're like

6581
03:31:04,566 --> 03:31:06,333
I'm losing people if they are the right people

6582
03:31:06,333 --> 03:31:07,566
that's bad if they are the wrong people

6583
03:31:07,566 --> 03:31:08,966
that's good and these can be

6584
03:31:08,966 --> 03:31:11,366
added to any sales process in any business

6585
03:31:11,366 --> 03:31:13,866
to increase close rates and the average ticket sold

6586
03:31:14,000 --> 03:31:15,600
and so there's a zillion ways to do this

6587
03:31:15,600 --> 03:31:17,200
so I'll I'll explain it like this

6588
03:31:17,200 --> 03:31:19,800
is that once you can create educational products

6589
03:31:19,800 --> 03:31:21,433
if you will that you would give away for free

6590
03:31:21,466 --> 03:31:22,400
you can insert them so

6591
03:31:22,400 --> 03:31:24,266
if you have multiple sales in a process

6592
03:31:24,266 --> 03:31:25,200
between call 1 and call 2

6593
03:31:25,200 --> 03:31:26,300
you can give them a video

6594
03:31:26,300 --> 03:31:28,066
if you want them to watch something

6595
03:31:28,066 --> 03:31:29,100
prior to getting on a call

6596
03:31:29,100 --> 03:31:31,333
before call 1 you can force them to watch a video

6597
03:31:31,333 --> 03:31:32,266
you can have someone

6598
03:31:32,266 --> 03:31:33,766
watch 5 videos before they talk to you

6599
03:31:33,766 --> 03:31:36,366
like all of this is just how much friction do we want

6600
03:31:36,733 --> 03:31:38,533
uh how little friction do we need to provide

6601
03:31:38,533 --> 03:31:42,000
to get people to buy we wanna have as much as needed

6602
03:31:42,000 --> 03:31:43,866
but no more and there you go

6603
03:31:43,866 --> 03:31:45,266
I already made my my CTA for you

6604
03:31:45,266 --> 03:31:46,500
but you can go to acquisition.com

6605
03:31:46,500 --> 03:31:48,066
if you want to grow your business

6606
03:31:48,066 --> 03:31:50,300
but that's my my cutesy way of doing it

6607
03:31:50,300 --> 03:31:52,200
that being said that completes

6608
03:31:52,200 --> 03:31:55,766
free with consumption and our attraction offer section

6609
03:31:55,966 --> 03:31:58,000
and now we move on to upsell offers

6610
03:31:59,900 --> 03:32:02,100
alright so we just covered attraction offers

6611
03:32:02,100 --> 03:32:02,500
so these are

6612
03:32:02,500 --> 03:32:05,300
the first thing that most people are going to see

6613
03:32:05,300 --> 03:32:06,366
when they're entering your business

6614
03:32:06,366 --> 03:32:08,133
this is the stuff that gets leads to engage

6615
03:32:08,133 --> 03:32:09,966
that's why they're big sexy free things

6616
03:32:09,966 --> 03:32:11,266
the upsell offers are things that

6617
03:32:11,266 --> 03:32:12,766
we're going to reposition

6618
03:32:12,933 --> 03:32:15,900
for them to spend even more money

6619
03:32:15,966 --> 03:32:17,600
now sometimes this happens immediately

6620
03:32:17,600 --> 03:32:19,200
sometimes it happens you know

6621
03:32:19,200 --> 03:32:21,333
a few days later sometimes a few weeks later

6622
03:32:21,333 --> 03:32:23,566
sometimes a month later but either way

6623
03:32:23,566 --> 03:32:26,866
we're going to be using four of my favorite upsells

6624
03:32:26,866 --> 03:32:30,200
so this is step two in our money model process

6625
03:32:30,200 --> 03:32:32,100
so here's what they are attraction offers are

6626
03:32:32,100 --> 03:32:33,333
with an attraction offer in place

6627
03:32:33,333 --> 03:32:34,733
you've got customers and cash

6628
03:32:34,733 --> 03:32:36,700
now we want to maximize 30 day profits

6629
03:32:36,700 --> 03:32:38,200
so what do we do answer

6630
03:32:38,200 --> 03:32:39,566
we make more money to do that

6631
03:32:39,566 --> 03:32:41,766
we make upsell offers and when it comes down to it

6632
03:32:41,766 --> 03:32:44,866
upsells just mean whatever we offer next

6633
03:32:44,866 --> 03:32:45,900
that's all an upsell is

6634
03:32:45,900 --> 03:32:48,000
and so when an offer solves a problem

6635
03:32:48,000 --> 03:32:49,800
another appears you upsell

6636
03:32:49,800 --> 03:32:50,066
the

6637
03:32:50,066 --> 03:32:52,300
solution to the problem that your first offer reveals

6638
03:32:52,333 --> 03:32:55,200
so every offer opens the door to an upsell

6639
03:32:55,200 --> 03:32:57,966
even upsells open the door to more upsells

6640
03:32:58,066 --> 03:33:00,566
and often upsells make up the majority of the profit

6641
03:33:00,566 --> 03:33:01,933
this way people don't understand

6642
03:33:01,933 --> 03:33:03,866
if the objective is that we can break even

6643
03:33:03,866 --> 03:33:05,166
obviously we wanna make as much money as we want

6644
03:33:05,166 --> 03:33:08,266
but you don't wanna make more money on a few customers

6645
03:33:08,500 --> 03:33:09,900
when you can get 10 times the customers

6646
03:33:09,900 --> 03:33:12,500
and then make way more on the second sale right

6647
03:33:12,500 --> 03:33:14,800
and so often upsells make up the majority of the profit

6648
03:33:14,800 --> 03:33:17,200
even if it's not the thing you sell the most of

6649
03:33:17,200 --> 03:33:18,000
think about in terms of volume

6650
03:33:18,000 --> 03:33:20,000
I might sell 10 times more of my front end offer

6651
03:33:20,000 --> 03:33:23,133
but 10 x of my profit comes from my second sale

6652
03:33:23,133 --> 03:33:24,466
they can make or break a money model

6653
03:33:24,466 --> 03:33:25,933
and so let me show you how much

6654
03:33:25,933 --> 03:33:29,100
so here's some examples so this is a classic burger

6655
03:33:29,100 --> 03:33:30,500
fries and soda store alright

6656
03:33:30,500 --> 03:33:33,366
so this is a our very sad burger shop owner

6657
03:33:33,433 --> 03:33:35,266
he sells a burger for two bucks

6658
03:33:35,266 --> 03:33:37,366
his cost on the burger is dollar seventy five

6659
03:33:37,366 --> 03:33:39,000
he makes 25 cents in profit

6660
03:33:39,000 --> 03:33:41,233
he cries himself to sleep every night very sad

6661
03:33:41,366 --> 03:33:43,966
now he is a happy tear isn't that nice

6662
03:33:43,966 --> 03:33:45,733
of going from 25 cents per sale

6663
03:33:45,733 --> 03:33:47,933
to one dollar and seventy five cents per sale

6664
03:33:47,933 --> 03:33:51,900
by adding in an upsell of fries and an upsell of soda

6665
03:33:51,900 --> 03:33:54,000
and the upsell of quantity of

6666
03:33:54,000 --> 03:33:55,733
do you wanna supersize your whole thing

6667
03:33:55,733 --> 03:33:57,400
so it's like do you wanna make that a meal

6668
03:33:57,400 --> 03:33:58,566
do you wanna supersize that

6669
03:33:58,566 --> 03:34:00,666
boom upsell one upsell two

6670
03:34:00,666 --> 03:34:03,700
and the thing is is that when they make this up sale

6671
03:34:03,800 --> 03:34:05,500
look at how much more they make per sale

6672
03:34:05,500 --> 03:34:06,566
a lot more

6673
03:34:06,866 --> 03:34:11,933
and so the end result of this goes from ￠25 to 8 x

6674
03:34:11,933 --> 03:34:13,333
the gross profit per sale

6675
03:34:13,333 --> 03:34:14,866
they're making way more $2

6676
03:34:14,866 --> 03:34:18,000
one dollar and seventy five cents from ￠25 originally

6677
03:34:18,000 --> 03:34:19,166
and so the thing is is that

6678
03:34:19,166 --> 03:34:20,733
you may just be one upsell

6679
03:34:20,733 --> 03:34:22,166
offer away from making yours

6680
03:34:22,166 --> 03:34:23,700
into a Donahoe's tea like theirs

6681
03:34:23,866 --> 03:34:24,766
you just have to figure out

6682
03:34:24,766 --> 03:34:26,266
what's your fries and a Coke

6683
03:34:26,533 --> 03:34:28,300
and if you don't someone else will

6684
03:34:28,333 --> 03:34:29,733
let me talk about when they fail

6685
03:34:29,733 --> 03:34:32,033
upsell offers fail or feel cringy

6686
03:34:32,166 --> 03:34:34,566
when you offer something that they don't want

6687
03:34:34,566 --> 03:34:35,900
so that's either too different

6688
03:34:35,900 --> 03:34:37,500
or doesn't solve their existing problem

6689
03:34:37,500 --> 03:34:38,600
you offer at the wrong time

6690
03:34:38,600 --> 03:34:40,100
so that's before they've experienced the problem

6691
03:34:40,100 --> 03:34:40,900
you say hey

6692
03:34:40,900 --> 03:34:42,200
you just had a steak do you want another steak

6693
03:34:42,200 --> 03:34:42,533
they're like well

6694
03:34:42,533 --> 03:34:43,366
I'm not really hungry anymore

6695
03:34:43,366 --> 03:34:44,100
you already solved that

6696
03:34:44,100 --> 03:34:45,200
you're trying to solve the same problem

6697
03:34:45,200 --> 03:34:46,266
you offer it the wrong way

6698
03:34:46,266 --> 03:34:47,133
which is they don't believe you

6699
03:34:47,133 --> 03:34:47,766
they're like sure

6700
03:34:47,766 --> 03:34:50,066
that would be nice but I don't believe you specifically

6701
03:34:50,066 --> 03:34:51,966
or it's a combination of the above

6702
03:34:52,033 --> 03:34:54,500
this is when it fails now what to sell

6703
03:34:54,500 --> 03:34:56,366
which becomes the next up sell offer question

6704
03:34:56,366 --> 03:34:57,600
more of what they just got

6705
03:34:57,600 --> 03:34:59,800
think quantity so that's uh

6706
03:34:59,866 --> 03:35:01,200
one burger to two burgers

6707
03:35:01,200 --> 03:35:03,066
better versions of it think quality

6708
03:35:03,066 --> 03:35:05,000
so this is why I have a mystery meat burger

6709
03:35:05,000 --> 03:35:06,566
when you get a sirloin meat burger

6710
03:35:06,566 --> 03:35:09,000
organic burger or newer complementary stuff

6711
03:35:09,000 --> 03:35:10,000
think different this is

6712
03:35:10,000 --> 03:35:11,500
do you want fries and a soda with that burger

6713
03:35:11,500 --> 03:35:13,000
fundamentally that's how this works

6714
03:35:13,000 --> 03:35:15,966
so the objective of the upsell is to maximize profit

6715
03:35:15,966 --> 03:35:18,766
per customer and to send clients into back ends

6716
03:35:18,766 --> 03:35:19,266
note

6717
03:35:19,266 --> 03:35:21,266
these structures that I talk about with the upsells

6718
03:35:21,266 --> 03:35:24,200
work anywhere I just prefer them as Ascension tools

6719
03:35:24,200 --> 03:35:25,966
a lot of these things could also be front ends

6720
03:35:26,066 --> 03:35:28,733
each of the offers that I explained in Money Models 1

6721
03:35:28,733 --> 03:35:29,366
putting them together

6722
03:35:29,366 --> 03:35:31,466
which again the money models putting them all together

6723
03:35:31,733 --> 03:35:33,066
some of the stuff I'll give you in continuity

6724
03:35:33,066 --> 03:35:33,933
you can use a front end offer

6725
03:35:33,933 --> 03:35:35,500
upsell offers you can use a front end offer

6726
03:35:35,500 --> 03:35:36,933
I just place them in the places

6727
03:35:36,933 --> 03:35:38,966
that I use them most commonly

6728
03:35:38,966 --> 03:35:40,100
and I think that they work

6729
03:35:40,100 --> 03:35:42,233
at least they have worked the best for me

6730
03:35:42,466 --> 03:35:44,000
so this is our lineup

6731
03:35:44,000 --> 03:35:45,366
we're gonna start with the classic upsell

6732
03:35:45,366 --> 03:35:46,366
we'll do the menu upsell

6733
03:35:46,366 --> 03:35:47,766
the anchor upsell and the rollover upsell

6734
03:35:47,766 --> 03:35:49,766
I use all of these

6735
03:35:49,800 --> 03:35:52,633
I have made so much money on these upsells

6736
03:35:52,733 --> 03:35:54,466
and if you follow what I lay out

6737
03:35:54,466 --> 03:35:56,166
you probably will too

6738
03:35:56,200 --> 03:35:57,966
and I will probably get more animated in these

6739
03:35:57,966 --> 03:36:00,400
because I just love these so much alright

6740
03:36:00,400 --> 03:36:03,066
with that being said the classic upsell

6741
03:36:04,933 --> 03:36:08,266
alright the classic upsell as usual

6742
03:36:08,333 --> 03:36:10,066
how I Learned it description examples

6743
03:36:10,066 --> 03:36:11,033
important points

6744
03:36:11,066 --> 03:36:14,566
here's my lovely visual thing for the classic upsell

6745
03:36:15,066 --> 03:36:16,533
how I Learned it here we go

6746
03:36:16,533 --> 03:36:20,200
so uh I had a mentorship

6747
03:36:20,200 --> 03:36:20,733
whatever you wanna call it

6748
03:36:20,733 --> 03:36:21,533
it wasn't really a mentorship

6749
03:36:21,533 --> 03:36:23,600
I was just getting paid and I took him as a mentor

6750
03:36:23,600 --> 03:36:25,033
he didn't really care about me at all

6751
03:36:25,066 --> 03:36:25,866
um

6752
03:36:26,566 --> 03:36:27,766
at a fur coat dealer

6753
03:36:27,766 --> 03:36:30,100
and he was a fourth generation furrier

6754
03:36:30,200 --> 03:36:32,233
and I uh

6755
03:36:32,900 --> 03:36:36,600
remember watching how his son who is my friend

6756
03:36:36,600 --> 03:36:38,266
that's how I got the job uh

6757
03:36:38,266 --> 03:36:40,966
I would be brushing fur coats all summer in the heat

6758
03:36:40,966 --> 03:36:42,233
in the warehouse uh

6759
03:36:42,400 --> 03:36:44,133
unbelievably mind melting stuff

6760
03:36:44,133 --> 03:36:45,900
like boring beyond belief

6761
03:36:45,900 --> 03:36:47,466
and the thing that I kept thinking was that

6762
03:36:47,466 --> 03:36:50,000
every single one of these coats was $200

6763
03:36:50,000 --> 03:36:53,333
and he had seven thousand coats in his warehouse

6764
03:36:53,333 --> 03:36:55,066
and I was like holy cow

6765
03:36:55,066 --> 03:36:57,500
I was like that's $1.4 million that he's making

6766
03:36:57,500 --> 03:36:58,900
just for storing coats for the summer

6767
03:36:58,900 --> 03:37:00,266
I was like this is pretty sweet

6768
03:37:00,266 --> 03:37:01,666
and I know what I was making

6769
03:37:01,800 --> 03:37:05,466
and it was not $1.4 million for storing these coats

6770
03:37:05,466 --> 03:37:08,500
and so the offer that they had to get people in

6771
03:37:08,533 --> 03:37:11,533
was that they would get people to store their coats

6772
03:37:11,533 --> 03:37:12,733
and they said if they stored them

6773
03:37:12,733 --> 03:37:14,166
they would get free earmuffs

6774
03:37:14,166 --> 03:37:15,533
free for earmuffs so people were like

6775
03:37:15,533 --> 03:37:16,500
oh that's cool

6776
03:37:16,666 --> 03:37:18,633
and so people would come in for the free earmuffs

6777
03:37:18,800 --> 03:37:20,600
and then they would say uh

6778
03:37:20,800 --> 03:37:22,600
we'll store and condition the coat for you

6779
03:37:22,600 --> 03:37:25,766
and it cost 30 bucks to uh store the muffs

6780
03:37:25,766 --> 03:37:27,466
now they'd come in for free earmuffs

6781
03:37:27,466 --> 03:37:28,600
but it's the summer

6782
03:37:28,600 --> 03:37:30,800
so then they would basically hand them the earmuffs

6783
03:37:30,800 --> 03:37:32,566
and then take the earmuffs back

6784
03:37:32,566 --> 03:37:34,500
and then they'd say you don't want anything else

6785
03:37:34,500 --> 03:37:35,366
do you

6786
03:37:35,933 --> 03:37:38,266
and so by saying you don't want anything else

6787
03:37:38,266 --> 03:37:40,933
they would assume close the winter storage

6788
03:37:40,933 --> 03:37:41,566
the conditioning

6789
03:37:41,566 --> 03:37:43,633
and the earmuffs that went with the sale

6790
03:37:43,900 --> 03:37:45,800
and so that is when I Learned

6791
03:37:45,800 --> 03:37:47,600
you can't have X without y

6792
03:37:47,700 --> 03:37:50,533
and that is the fundamental basis of the classic upsell

6793
03:37:50,533 --> 03:37:51,933
you don't want burgers without fries

6794
03:37:51,933 --> 03:37:53,266
you don't want burgers without a Coke

6795
03:37:53,266 --> 03:37:55,066
you don't want a fur coat without storing it

6796
03:37:55,066 --> 03:37:56,766
you don't want a fur coat without conditioning it

6797
03:37:56,766 --> 03:37:58,700
it'd be like taking a car and not getting it serviced

6798
03:37:58,700 --> 03:38:00,766
like you don't want X without y

6799
03:38:00,766 --> 03:38:02,766
and so I Learned a couple of things

6800
03:38:02,766 --> 03:38:05,200
one was the the structure of a classic up sale

6801
03:38:05,200 --> 03:38:06,666
which is you don't wanna ask without why

6802
03:38:06,666 --> 03:38:09,933
but tactically I Learned the no sale sale alright

6803
03:38:09,933 --> 03:38:12,300
and so the way that this works is basically

6804
03:38:12,400 --> 03:38:14,666
people have been conditioned over the years to

6805
03:38:14,666 --> 03:38:16,200
to say no to salesmen

6806
03:38:16,366 --> 03:38:18,366
and so when someone says you don't want anything else

6807
03:38:18,366 --> 03:38:20,400
most people just immediately say no

6808
03:38:20,400 --> 03:38:20,866
and so

6809
03:38:20,866 --> 03:38:24,766
what we want to do is basically imply that the else

6810
03:38:24,800 --> 03:38:28,366
means in addition to the thing we just offered you

6811
03:38:28,366 --> 03:38:29,266
and by doing that

6812
03:38:29,266 --> 03:38:31,333
you get people to say yes by saying no

6813
03:38:31,333 --> 03:38:33,766
and so these people who came in to store their coats

6814
03:38:33,766 --> 03:38:36,933
agreed to storage conditioning and the free earmuffs

6815
03:38:36,933 --> 03:38:42,466
which then got stored at a 30 dollar fee for saying no

6816
03:38:43,266 --> 03:38:44,833
that you don't want anything else

6817
03:38:45,000 --> 03:38:46,700
so the no sale

6818
03:38:46,700 --> 03:38:49,300
sale is what I ended up calling a different sale

6819
03:38:49,300 --> 03:38:51,566
which may sound confusing but bear with me

6820
03:38:51,566 --> 03:38:53,333
so if someone came to the gym and they said they

6821
03:38:53,333 --> 03:38:55,866
ultimately they declined every service offering we had

6822
03:38:55,866 --> 03:38:57,300
right which sucks

6823
03:38:57,600 --> 03:38:59,800
you would then try and salvage some sort of goodwill

6824
03:38:59,800 --> 03:39:01,333
or rapport cause this person walked in

6825
03:39:01,333 --> 03:39:02,566
and is basically walking back out

6826
03:39:02,566 --> 03:39:04,166
which sucks and so you say

6827
03:39:04,166 --> 03:39:07,233
hey listen I still wanna help you for six weeks

6828
03:39:07,266 --> 03:39:11,666
and so why don't we just do this as an at home program

6829
03:39:11,766 --> 03:39:12,200
alright so

6830
03:39:12,200 --> 03:39:13,366
I'll give you this thumb drive

6831
03:39:13,366 --> 03:39:14,333
that has at home workouts

6832
03:39:14,333 --> 03:39:15,933
that you can follow and then come in

6833
03:39:15,933 --> 03:39:17,066
in a couple days

6834
03:39:17,100 --> 03:39:20,000
and we will give you a nutrition consult on the house

6835
03:39:20,000 --> 03:39:20,966
alright we just want to help you out

6836
03:39:20,966 --> 03:39:21,333
and hopefully

6837
03:39:21,333 --> 03:39:23,066
maybe when things are a little less crazy

6838
03:39:23,066 --> 03:39:24,066
your money's a little bit better

6839
03:39:24,066 --> 03:39:24,600
you can come back

6840
03:39:24,600 --> 03:39:26,233
and at least you'll have nice things to say about us

6841
03:39:26,300 --> 03:39:27,966
and so a lot of people would say yes to that

6842
03:39:27,966 --> 03:39:29,566
and so when they showed up to the next appointment

6843
03:39:29,566 --> 03:39:30,866
which was the nutrition consult

6844
03:39:31,300 --> 03:39:34,566
we would still close the same percentage of them

6845
03:39:34,566 --> 03:39:35,866
as we did for normal customers

6846
03:39:35,866 --> 03:39:37,100
but here was the cool thing

6847
03:39:37,733 --> 03:39:39,600
we actually close them at a higher average ticket

6848
03:39:39,800 --> 03:39:41,900
and so the people who bought services

6849
03:39:42,000 --> 03:39:43,266
and then bought supplements

6850
03:39:43,266 --> 03:39:46,366
average $200 a ticket people who didn't buy services

6851
03:39:46,366 --> 03:39:47,800
and then bought supplements

6852
03:39:47,866 --> 03:39:51,266
average $300 a ticket and so to me

6853
03:39:51,266 --> 03:39:52,933
my lesson from this was that

6854
03:39:52,933 --> 03:39:54,900
we tried to solve their problem

6855
03:39:54,933 --> 03:39:56,666
not in the way they wanted to solve it

6856
03:39:56,766 --> 03:39:57,966
so they wanted to lose weight

6857
03:39:57,966 --> 03:40:00,200
but they wanted to have a magic pill rather than work

6858
03:40:00,666 --> 03:40:01,000
and so

6859
03:40:01,000 --> 03:40:03,000
we needed to have the magic pill available for them

6860
03:40:03,000 --> 03:40:04,866
which in their mind would be supplements now obviously

6861
03:40:04,866 --> 03:40:05,966
we always say you gotta make sure

6862
03:40:05,966 --> 03:40:06,866
you gotta eat the food and all that stuff

6863
03:40:06,866 --> 03:40:08,366
but people hear what they wanna hear

6864
03:40:08,366 --> 03:40:09,866
and so the thing is

6865
03:40:09,866 --> 03:40:12,900
is the magic behind this is that we turned no sales

6866
03:40:13,400 --> 03:40:17,466
into sales by just offering them something else so

6867
03:40:18,566 --> 03:40:20,700
so what you do is you provide a service for free

6868
03:40:20,700 --> 03:40:22,466
that you can monetize another way

6869
03:40:22,466 --> 03:40:23,900
so this works for one time services

6870
03:40:23,900 --> 03:40:24,966
or even recurring services

6871
03:40:24,966 --> 03:40:26,666
provided the recurring stream is high enough margins

6872
03:40:26,666 --> 03:40:27,566
to pay for both

6873
03:40:27,566 --> 03:40:28,700
different way of saying essentially

6874
03:40:28,700 --> 03:40:30,133
I give you thing a for free

6875
03:40:30,133 --> 03:40:31,700
in exchange for buying thing B

6876
03:40:31,800 --> 03:40:33,700
or I give you thing a for free

6877
03:40:33,700 --> 03:40:35,466
and I will encourage you to buy thing B

6878
03:40:35,533 --> 03:40:37,900
or I give you a thing for free as long

6879
03:40:37,900 --> 03:40:39,800
as you continue to use thing B

6880
03:40:39,800 --> 03:40:42,800
any of those things so the earmuff thing he says

6881
03:40:42,800 --> 03:40:44,133
I will give you these free earmuffs

6882
03:40:44,133 --> 03:40:45,600
and I will encourage you to storage

6883
03:40:46,400 --> 03:40:48,400
that's what that was a classic upsell

6884
03:40:49,500 --> 03:40:53,000
so if we have a lemonade stand with our classic upsell

6885
03:40:53,166 --> 03:40:53,733
we say

6886
03:40:53,733 --> 03:40:56,166
we want to give you a free cup of lemonade upsell

6887
03:40:56,166 --> 03:40:58,533
one might be do you want a lemonade ice cubes

6888
03:40:58,533 --> 03:41:00,400
to make it cold without diluting it

6889
03:41:00,400 --> 03:41:02,600
now of course you could give cold lemonade

6890
03:41:02,600 --> 03:41:04,666
but then you wouldn't have an ice cube upsell

6891
03:41:05,533 --> 03:41:06,400
option 2 would be

6892
03:41:06,400 --> 03:41:08,400
do you want a stainless steel to go container

6893
03:41:08,400 --> 03:41:09,400
to keep it cold for you

6894
03:41:09,400 --> 03:41:11,133
and we'll donate $1 to help children's cancer

6895
03:41:11,133 --> 03:41:12,366
to anyone who takes the mug

6896
03:41:12,366 --> 03:41:15,966
you also get 20% off refills upsell No. 2 right

6897
03:41:15,966 --> 03:41:18,133
so you don't want lemonade in a little paper cup

6898
03:41:18,133 --> 03:41:19,566
you want a nice steel mug

6899
03:41:19,566 --> 03:41:21,366
you don't want diluted down lemonade

6900
03:41:21,366 --> 03:41:23,733
you want lemonade ice cubes right

6901
03:41:23,733 --> 03:41:25,733
each of these things are just natural upsells

6902
03:41:25,733 --> 03:41:26,166
that can happen

6903
03:41:26,166 --> 03:41:28,166
and I prove this point because whatever it is you sell

6904
03:41:28,166 --> 03:41:30,366
there's an upsell that's available for you alright

6905
03:41:30,366 --> 03:41:33,266
so storage in this business

6906
03:41:33,366 --> 03:41:35,300
um I have a whole story around this

6907
03:41:35,300 --> 03:41:37,800
but I tell this in the book

6908
03:41:37,800 --> 03:41:39,500
so I'll I'll give you the brief version of it

6909
03:41:39,500 --> 03:41:41,766
but in the first few months of me being in business

6910
03:41:41,766 --> 03:41:42,933
I was struggling a little bit

6911
03:41:42,933 --> 03:41:44,866
and so the business owner across

6912
03:41:44,866 --> 03:41:46,766
the street was a massive storage unit

6913
03:41:46,766 --> 03:41:48,566
and he ended up becoming a member of my gym

6914
03:41:48,566 --> 03:41:50,266
because it was super convenient for him

6915
03:41:50,400 --> 03:41:52,266
and so he asked me you know hey

6916
03:41:52,266 --> 03:41:53,600
how much time you got left to live

6917
03:41:53,600 --> 03:41:56,333
and I was like not that long and so he said

6918
03:41:56,333 --> 03:41:57,966
come for a ride with me and uh

6919
03:41:58,133 --> 03:42:01,866
he took me to his facility and he said uh

6920
03:42:02,066 --> 03:42:03,966
how much does a free month of storage cost

6921
03:42:03,966 --> 03:42:06,333
and I was like I don't know free and he was like

6922
03:42:06,333 --> 03:42:09,133
no $127 and so as we walked in

6923
03:42:09,133 --> 03:42:10,866
he asked Judy the front desk girl

6924
03:42:10,866 --> 03:42:13,133
he said how much does a free month of storage cost

6925
03:42:13,133 --> 03:42:15,166
she was like $127 and he was like

6926
03:42:15,166 --> 03:42:18,100
that's right and so I was like how does this even work

6927
03:42:18,100 --> 03:42:18,800
and he was like okay

6928
03:42:18,800 --> 03:42:20,966
so you come in for a free month of storage he's like

6929
03:42:20,966 --> 03:42:22,166
what's the first thing you're gonna need

6930
03:42:22,166 --> 03:42:23,566
and he's walking me through the facility

6931
03:42:23,566 --> 03:42:26,166
pauses and I was like I don't know

6932
03:42:26,166 --> 03:42:28,400
and then he taps the lock on the door and I was like oh

6933
03:42:28,400 --> 03:42:30,133
a lock and he's like right he's like

6934
03:42:30,133 --> 03:42:31,100
and you can't have any kind of lock

6935
03:42:31,100 --> 03:42:32,166
because there's only one kind of lock

6936
03:42:32,166 --> 03:42:34,566
that fits this door the locks that I sell at the front

6937
03:42:35,333 --> 03:42:37,666
he's like for $47 and I was like

6938
03:42:37,800 --> 03:42:39,900
oh okay got it and I was like

6939
03:42:39,900 --> 03:42:41,766
so you make 47 people come from the from I was like

6940
03:42:41,766 --> 03:42:44,266
but where's the other you know whatever it is 80 bucks

6941
03:42:44,733 --> 03:42:45,466
he's like good question

6942
03:42:45,466 --> 03:42:47,333
he's like now that you have your lock

6943
03:42:47,333 --> 03:42:48,700
what else are you gonna need

6944
03:42:49,100 --> 03:42:50,366
I was like uh

6945
03:42:50,366 --> 03:42:51,266
you know I'm I'm like

6946
03:42:51,266 --> 03:42:52,800
I don't know he's like well

6947
03:42:52,800 --> 03:42:54,666
you probably need some boxes

6948
03:42:54,666 --> 03:42:55,700
for all that stuff that you have

6949
03:42:55,700 --> 03:42:57,100
which I have convenient here

6950
03:42:57,100 --> 03:42:58,566
you don't wanna go to another place down the street

6951
03:42:58,566 --> 03:42:59,800
or have to order them on Amazon

6952
03:42:59,800 --> 03:43:01,166
wait for them to come break them

6953
03:43:01,166 --> 03:43:01,566
box them all

6954
03:43:01,566 --> 03:43:03,466
this is like we have them right here available for you

6955
03:43:03,533 --> 03:43:04,866
and I was like oh right

6956
03:43:04,866 --> 03:43:08,166
he's like and we also have a hand toe the

6957
03:43:08,166 --> 03:43:09,966
the hand trucks that you can use

6958
03:43:09,966 --> 03:43:12,300
to move your stuff in and out at your convenience

6959
03:43:13,000 --> 03:43:14,133
for a fee I was like

6960
03:43:14,133 --> 03:43:15,600
oh right he's like

6961
03:43:15,600 --> 03:43:16,566
you know and uh

6962
03:43:17,100 --> 03:43:18,666
this stuff's probably really valuable for you

6963
03:43:18,666 --> 03:43:19,866
cause otherwise you just throw it away

6964
03:43:19,866 --> 03:43:22,133
but it's valuable enough that you pay to store it uh

6965
03:43:22,133 --> 03:43:25,900
we obviously guarantee up to $500 in damage uh

6966
03:43:25,900 --> 03:43:27,000
that could happen if there's a flood

6967
03:43:27,000 --> 03:43:27,900
or anything should happen

6968
03:43:27,900 --> 03:43:29,666
or theft but if you want

6969
03:43:29,666 --> 03:43:31,000
you can have a million dollar

6970
03:43:31,000 --> 03:43:32,800
storage fee for just an extra

6971
03:43:32,800 --> 03:43:34,100
$10 a month

6972
03:43:34,866 --> 03:43:36,566
and he paused he was like

6973
03:43:36,566 --> 03:43:37,866
you wanna know my margins on that

6974
03:43:37,866 --> 03:43:39,500
I was like uh okay

6975
03:43:39,500 --> 03:43:41,700
and he was like 90% hahaha

6976
03:43:42,200 --> 03:43:43,533
and so he explained that he's like

6977
03:43:43,533 --> 03:43:44,500
and you know what happens

6978
03:43:44,500 --> 03:43:45,066
a lot of times

6979
03:43:45,066 --> 03:43:46,966
is that people's eyes are bigger than their stomach

6980
03:43:47,000 --> 03:43:48,500
so they come here and they think

6981
03:43:48,500 --> 03:43:50,733
they're gonna be able to fit all this crap in a locker

6982
03:43:50,733 --> 03:43:53,566
this big often times they need a bigger unit

6983
03:43:53,566 --> 03:43:55,100
it's also a little bit spacier

6984
03:43:55,100 --> 03:43:56,700
and that way they can get their stuff in and out

6985
03:43:56,700 --> 03:43:58,366
because they don't realize if stuff's in the back

6986
03:43:58,366 --> 03:44:00,166
they got to move everything out just to get to it

6987
03:44:00,266 --> 03:44:02,733
and so he walked me through every single

6988
03:44:02,733 --> 03:44:04,666
every single up sale that they had

6989
03:44:04,666 --> 03:44:05,966
and I realized that that's how

6990
03:44:05,966 --> 03:44:08,966
a free month of storage created $127

6991
03:44:09,000 --> 03:44:11,100
and so many businesses right now

6992
03:44:11,133 --> 03:44:12,466
just like the run a car story

6993
03:44:12,466 --> 03:44:13,900
just like the storage unit

6994
03:44:13,900 --> 03:44:16,000
there are other things that a customer must purchase

6995
03:44:16,000 --> 03:44:17,500
they will buy them it's just a question

6996
03:44:17,500 --> 03:44:18,300
will they buy them from you

6997
03:44:18,300 --> 03:44:19,366
or somebody down the street

6998
03:44:19,366 --> 03:44:21,766
so weight loss so for us

6999
03:44:21,766 --> 03:44:24,266
up sell No. 1 was at the nutrition orientation

7000
03:44:24,266 --> 03:44:25,600
we would sell them supplements

7001
03:44:25,600 --> 03:44:27,333
we would then sell them nutrition plans

7002
03:44:27,333 --> 03:44:28,666
that was in the immediate version

7003
03:44:28,666 --> 03:44:29,933
for me was I wanted to sell supplements

7004
03:44:29,933 --> 03:44:31,000
cause I had no more delivery

7005
03:44:31,000 --> 03:44:32,133
I could immediately hand it to them

7006
03:44:32,133 --> 03:44:33,533
make the profit back and usually

7007
03:44:33,533 --> 03:44:34,500
what I made on the supplements

7008
03:44:34,500 --> 03:44:35,900
covered the cost of the car customer

7009
03:44:35,900 --> 03:44:38,666
so just that sale covered my my cash flow

7010
03:44:38,666 --> 03:44:40,366
and I hadn't even started servicing them yet

7011
03:44:40,366 --> 03:44:41,666
and so a lot of you guys have

7012
03:44:41,666 --> 03:44:43,000
these little things that are available

7013
03:44:43,000 --> 03:44:44,600
like if I have a physical therapist

7014
03:44:44,600 --> 03:44:46,333
maybe you give four free treatments as your offer

7015
03:44:46,333 --> 03:44:47,133
that's a banger offer

7016
03:44:47,133 --> 03:44:48,366
a lot of people might consider that

7017
03:44:48,366 --> 03:44:51,000
but up so one is you're gonna need these orthotics

7018
03:44:51,066 --> 03:44:52,266
these bands these braces

7019
03:44:52,266 --> 03:44:54,100
these oils this kinesio tape

7020
03:44:54,100 --> 03:44:55,900
all to maximize the effectiveness

7021
03:44:55,900 --> 03:44:57,200
of the four treatments

7022
03:44:57,200 --> 03:44:59,566
and so they come in for the free month of storage

7023
03:44:59,566 --> 03:45:01,733
but they need their lock they need their insurance

7024
03:45:01,733 --> 03:45:02,900
they need their boxes

7025
03:45:02,933 --> 03:45:04,600
just think about those things for yourself

7026
03:45:04,700 --> 03:45:05,833
if you're an education

7027
03:45:05,866 --> 03:45:08,466
it's like I offer uh group coaching

7028
03:45:08,466 --> 03:45:10,066
provide information in a community for free

7029
03:45:10,066 --> 03:45:12,500
and definitely as long as you keep using my software

7030
03:45:12,500 --> 03:45:13,666
by the way this is basically

7031
03:45:13,733 --> 03:45:15,533
I mean fundamentally what we do with school

7032
03:45:15,533 --> 03:45:16,900
we do all this stuff for free

7033
03:45:16,900 --> 03:45:20,066
and then just use school to help monetize okay

7034
03:45:20,133 --> 03:45:21,166
uh free versus discount

7035
03:45:21,166 --> 03:45:22,800
note is that with the classic upsell

7036
03:45:23,266 --> 03:45:24,866
it works either way same as normal

7037
03:45:24,866 --> 03:45:25,600
so a friend of mine

7038
03:45:25,600 --> 03:45:27,566
had a very successful weight loss chain

7039
03:45:27,700 --> 03:45:30,833
and they offered services for $5 a month

7040
03:45:30,866 --> 03:45:31,500
for their weight loss

7041
03:45:31,500 --> 03:45:33,333
and they had doctors and nurses and all stuff there

7042
03:45:33,333 --> 03:45:35,100
and I was like that's insane and she was like yeah

7043
03:45:35,100 --> 03:45:36,900
cause we don't make money on the weight loss services

7044
03:45:37,000 --> 03:45:37,966
and I was like what do you mean

7045
03:45:37,966 --> 03:45:38,533
she's like oh

7046
03:45:38,533 --> 03:45:40,000
we sell like five grand in supplements

7047
03:45:40,000 --> 03:45:41,033
on the second day

7048
03:45:41,966 --> 03:45:43,600
I was like oh

7049
03:45:43,600 --> 03:45:44,833
so that's where I Learned

7050
03:45:45,500 --> 03:45:46,733
that's where I really Learned

7051
03:45:46,733 --> 03:45:49,800
a lot of the really Jedi stuff that I know from um

7052
03:45:49,800 --> 03:45:52,300
supplement sales I Learned from her

7053
03:45:52,333 --> 03:45:56,600
and I paid her top sales person $500 an hour

7054
03:45:56,766 --> 03:45:58,533
for two hours

7055
03:45:58,533 --> 03:46:01,300
to tell me everything she did to sell supplements

7056
03:46:01,300 --> 03:46:02,333
and you know what's crazy

7057
03:46:02,333 --> 03:46:04,600
when I told her top salesperson

7058
03:46:04,666 --> 03:46:06,366
that I would pay her $500

7059
03:46:06,366 --> 03:46:08,333
she was like $500

7060
03:46:08,333 --> 03:46:09,766
she's like just to talk to you

7061
03:46:09,766 --> 03:46:11,300
and I was like yeah

7062
03:46:12,066 --> 03:46:13,500
she thought I was an idiot

7063
03:46:14,266 --> 03:46:15,333
I'm I'm dead serious

7064
03:46:15,333 --> 03:46:18,300
she she looked at me like I had three eyes on my head

7065
03:46:18,300 --> 03:46:19,966
and she was like it's your money

7066
03:46:20,300 --> 03:46:21,966
and so she just walked me through

7067
03:46:21,966 --> 03:46:23,000
every single

7068
03:46:23,000 --> 03:46:25,100
detail of what she did to sell supplements

7069
03:46:25,133 --> 03:46:26,933
and that $1,000

7070
03:46:26,933 --> 03:46:30,000
two hours that I paid for made me millions

7071
03:46:31,133 --> 03:46:33,300
and so I highly encourage you

7072
03:46:33,800 --> 03:46:35,733
sometimes the best people learn from

7073
03:46:35,733 --> 03:46:37,800
are people who aren't even selling information

7074
03:46:37,800 --> 03:46:39,366
just offer to pay them

7075
03:46:39,366 --> 03:46:41,366
to learn what they do in their particular niche

7076
03:46:41,366 --> 03:46:44,266
or skill and because people are not used to doing that

7077
03:46:44,266 --> 03:46:45,300
and you can charge you know

7078
03:46:45,300 --> 03:46:46,566
you can offer way more what the value

7079
03:46:46,566 --> 03:46:48,266
you know what the what the money's worth to you

7080
03:46:48,700 --> 03:46:50,200
you can make way more money that way

7081
03:46:50,200 --> 03:46:51,366
so uh

7082
03:46:51,466 --> 03:46:53,766
I Learned from her that she had service

7083
03:46:53,766 --> 03:46:56,800
that she basically gave for a nominal amount of money

7084
03:46:56,800 --> 03:46:57,866
cause she didn't even care about it

7085
03:46:57,866 --> 03:46:59,333
just because that drew people in

7086
03:46:59,333 --> 03:47:00,766
and then they sell the supplements and the food

7087
03:47:00,766 --> 03:47:02,833
and the bars and the shakes um

7088
03:47:03,366 --> 03:47:04,400
and yeah they were they

7089
03:47:04,400 --> 03:47:06,266
you know they had doctors and nurses working there

7090
03:47:06,266 --> 03:47:07,466
that's how they made the money

7091
03:47:07,800 --> 03:47:10,400
so important points so No. 1

7092
03:47:10,400 --> 03:47:11,700
if you make thing a free

7093
03:47:11,700 --> 03:47:13,466
then you gotta be able to give it away for free

7094
03:47:13,500 --> 03:47:15,900
if someone comes in and wants the free workouts

7095
03:47:15,900 --> 03:47:17,466
you have to deliver the free workouts

7096
03:47:17,466 --> 03:47:19,900
now you can't say you have to buy this other thing

7097
03:47:19,900 --> 03:47:20,933
otherwise it's not free

7098
03:47:20,933 --> 03:47:22,833
you want to strongly encourage the thing

7099
03:47:22,866 --> 03:47:24,700
but that's fundamentally how it works alright

7100
03:47:24,700 --> 03:47:26,466
so make sure that it doesn't cost you a lot

7101
03:47:26,466 --> 03:47:29,333
or anything at all like that thumb drive that we gave

7102
03:47:29,333 --> 03:47:32,400
like you can you want it to be something that's cheap

7103
03:47:32,566 --> 03:47:35,066
but still valuable the next thing is make the upsells

7104
03:47:35,066 --> 03:47:37,166
the next natural thing that they would need to buy

7105
03:47:37,166 --> 03:47:39,066
that's the boxes the large units

7106
03:47:39,066 --> 03:47:40,466
the locks the

7107
03:47:40,466 --> 03:47:42,700
the insurance things like that

7108
03:47:42,900 --> 03:47:45,200
the weight loss clinic continuity of service

7109
03:47:45,200 --> 03:47:46,766
continuity of supplements done for you meals

7110
03:47:46,766 --> 03:47:47,800
hormone treatments etcetera

7111
03:47:47,800 --> 03:47:50,600
all of those things were all part of classic upsells

7112
03:47:50,600 --> 03:47:51,866
that went through you can't have X without y

7113
03:47:51,866 --> 03:47:52,366
you can't have

7114
03:47:52,366 --> 03:47:54,000
this weight loss service without these supplements

7115
03:47:54,000 --> 03:47:56,300
just think you can't have X without y as your

7116
03:47:56,300 --> 03:47:57,366
as your mental framework for what

7117
03:47:57,366 --> 03:47:58,700
the next thing I'm gonna offer is

7118
03:47:59,333 --> 03:48:00,966
alright this play works so well

7119
03:48:00,966 --> 03:48:03,200
because the perception of how essential or required

7120
03:48:03,200 --> 03:48:04,300
the next thing is alright

7121
03:48:04,300 --> 03:48:06,366
so this is the key point if

7122
03:48:06,366 --> 03:48:09,533
supplements is core to how someone's gonna get results

7123
03:48:09,533 --> 03:48:12,100
with the main thing the likely they buy is very high

7124
03:48:12,100 --> 03:48:13,200
so if you remember the uh

7125
03:48:13,200 --> 03:48:16,133
minimum package for the rental car story I gave you

7126
03:48:16,133 --> 03:48:20,533
you want this to feel as required as possible again

7127
03:48:20,533 --> 03:48:22,966
you don't want to make it required because then it's

7128
03:48:22,966 --> 03:48:27,200
it's it gets shady but you want to strongly encourage

7129
03:48:27,200 --> 03:48:28,200
people to take these things

7130
03:48:28,200 --> 03:48:29,966
to get the best results which ethically

7131
03:48:29,966 --> 03:48:31,533
they should be able to get better results with

7132
03:48:31,533 --> 03:48:33,200
whatever your upsell is alright

7133
03:48:33,200 --> 03:48:33,533
and so

7134
03:48:33,533 --> 03:48:36,000
how seamless the upsell process is for the prospect

7135
03:48:36,000 --> 03:48:37,466
if you make it frictionless

7136
03:48:37,533 --> 03:48:37,900
you can get

7137
03:48:37,900 --> 03:48:40,633
sometimes 80% plus of people to take these upsells

7138
03:48:40,800 --> 03:48:43,000
I personally prefer to have upsells

7139
03:48:43,000 --> 03:48:44,933
that have very little operational drag

7140
03:48:44,933 --> 03:48:47,166
so that I can immediately offset cost to get it

7141
03:48:47,166 --> 03:48:49,400
getting a customer or it becomes

7142
03:48:49,400 --> 03:48:51,000
that's my major profit stream

7143
03:48:51,000 --> 03:48:53,200
it depends on what the objective is for your business

7144
03:48:53,266 --> 03:48:56,000
boom summary works on the front end

7145
03:48:56,000 --> 03:48:57,900
as a back end works as an internal play

7146
03:48:57,900 --> 03:49:00,400
meaning you can just upsell your existing customers

7147
03:49:00,400 --> 03:49:02,366
that's basically what the storage thing with

7148
03:49:02,366 --> 03:49:03,300
with the fur coats was

7149
03:49:03,300 --> 03:49:04,733
many of those people were existing customers

7150
03:49:04,733 --> 03:49:07,000
you can just upsell those people um

7151
03:49:07,066 --> 03:49:08,000
if you suck at sales

7152
03:49:08,000 --> 03:49:10,600
this is not a hard sale to make uh

7153
03:49:10,600 --> 03:49:12,466
there's a lot of goodwill in this play

7154
03:49:12,466 --> 03:49:14,333
because you just make sure that you close the up sale

7155
03:49:14,333 --> 03:49:15,133
like it's like hey

7156
03:49:15,133 --> 03:49:15,866
let me give you this thing

7157
03:49:15,866 --> 03:49:16,933
I'm giving you this free ear buffs

7158
03:49:16,933 --> 03:49:17,666
why not take it

7159
03:49:17,666 --> 03:49:19,966
but of course you gotta take this other thing too um

7160
03:49:19,966 --> 03:49:21,933
and if you aren't getting 80% plus close rates

7161
03:49:21,933 --> 03:49:23,000
you're doing it wrong

7162
03:49:23,000 --> 03:49:24,833
so that's my big benchmark for you

7163
03:49:24,866 --> 03:49:26,500
if you're getting 30% to take it

7164
03:49:26,500 --> 03:49:28,500
you're not you're not making it assumed enough

7165
03:49:28,500 --> 03:49:29,700
you're not it's

7166
03:49:29,700 --> 03:49:33,200
it's not clear enough to them that this goes with

7167
03:49:33,200 --> 03:49:34,000
so think about it like that

7168
03:49:34,000 --> 03:49:36,900
it has to go with if you go to McDonald's

7169
03:49:36,900 --> 03:49:39,000
I would bet you that 80% of people are getting fries

7170
03:49:39,000 --> 03:49:40,366
and a Coke you want it

7171
03:49:40,366 --> 03:49:42,966
you want a very high uptake rate on the people who buy

7172
03:49:42,966 --> 03:49:44,066
the next natural thing

7173
03:49:44,066 --> 03:49:46,200
think of this as the thing that goes with the thing

7174
03:49:46,533 --> 03:49:48,533
and give the thing away for free

7175
03:49:48,533 --> 03:49:49,200
to make sure that all

7176
03:49:49,200 --> 03:49:50,366
the thing that goes with the thing

7177
03:49:50,366 --> 03:49:52,333
you can make the money on alright

7178
03:49:52,333 --> 03:49:53,666
and so the nice thing with this is that

7179
03:49:53,666 --> 03:49:55,633
it gives you a lot of upfront customers

7180
03:49:56,533 --> 03:49:58,033
and that is the classic upsell

7181
03:49:59,866 --> 03:50:02,700
all right so we just covered the classic upsell

7182
03:50:02,900 --> 03:50:04,800
I think this next one is my favorite one

7183
03:50:04,800 --> 03:50:07,733
in this whole training which is the menu upsell

7184
03:50:07,733 --> 03:50:10,766
let's dive in so how I Learned a description examples

7185
03:50:10,766 --> 03:50:11,733
important points and summary

7186
03:50:11,733 --> 03:50:14,400
so there are four steps to the menu upsell

7187
03:50:14,700 --> 03:50:16,266
we unsell what they don't need

7188
03:50:16,266 --> 03:50:17,666
prescribe what they do need

7189
03:50:17,666 --> 03:50:19,333
ask if they prefer a or B

7190
03:50:19,333 --> 03:50:20,900
and then make it easy to pay

7191
03:50:20,900 --> 03:50:23,166
so this is me getting super tactical with you

7192
03:50:23,166 --> 03:50:24,733
in terms of how to upsell stuff

7193
03:50:24,733 --> 03:50:26,366
like a pro

7194
03:50:26,366 --> 03:50:30,200
I have done so many upsell consultations in my life

7195
03:50:30,200 --> 03:50:32,333
and this works

7196
03:50:32,333 --> 03:50:35,466
I have used this sales process in many businesses

7197
03:50:35,566 --> 03:50:38,600
like this slays all right

7198
03:50:38,600 --> 03:50:39,666
so here's how I Learned it

7199
03:50:40,200 --> 03:50:43,366
so this whole process took me

7200
03:50:43,733 --> 03:50:46,900
call it years to learn every single piece of it

7201
03:50:46,900 --> 03:50:48,966
but every single part is like a

7202
03:50:48,966 --> 03:50:51,566
a Lego thing that builds onto itself

7203
03:50:51,800 --> 03:50:53,200
so the first thing that I

7204
03:50:53,200 --> 03:50:55,433
the first thing that I Learned was uh

7205
03:50:55,766 --> 03:50:55,866
well

7206
03:50:55,866 --> 03:50:57,966
I'll tell you the story and you can go along with me

7207
03:50:58,000 --> 03:51:02,500
so I had that guy who was making supplements uh

7208
03:51:02,500 --> 03:51:03,966
and he was making 80 grand a month or whatever

7209
03:51:03,966 --> 03:51:05,566
and I was like I gotta start selling supplements

7210
03:51:05,666 --> 03:51:09,300
and so I buy $5,000 of inventory and then of course

7211
03:51:09,433 --> 03:51:10,966
no one buys my products so I'm there

7212
03:51:10,966 --> 03:51:12,300
I've got these full shelves

7213
03:51:12,300 --> 03:51:12,566
I'm

7214
03:51:12,566 --> 03:51:14,766
I'm reading all the stuff about retail and packaging

7215
03:51:14,766 --> 03:51:16,066
and make sure they're twisted the front

7216
03:51:16,100 --> 03:51:17,200
but no one's buying these things

7217
03:51:17,200 --> 03:51:17,900
and I'm you know

7218
03:51:17,900 --> 03:51:19,500
the only sales I was getting were like pity sales

7219
03:51:19,500 --> 03:51:20,366
and I could tell the difference

7220
03:51:20,366 --> 03:51:21,666
they were like this guy's so broke

7221
03:51:21,666 --> 03:51:23,666
sure I'll buy a protein from you right

7222
03:51:23,766 --> 03:51:25,366
and so I would I was getting in all the science

7223
03:51:25,366 --> 03:51:27,000
I was like the hyper trophy and the body mass and

7224
03:51:27,000 --> 03:51:29,966
but you know creatine levels and what like mind you

7225
03:51:29,966 --> 03:51:31,666
I'm selling 70% women here

7226
03:51:31,766 --> 03:51:32,666
no one cared

7227
03:51:32,933 --> 03:51:35,400
and so I just went on a particularly bad day

7228
03:51:35,400 --> 03:51:37,400
I went over 19 on nutrition consults

7229
03:51:37,400 --> 03:51:37,500
so

7230
03:51:37,500 --> 03:51:39,766
the way that I would do is I would sell services for 2

7231
03:51:39,766 --> 03:51:40,400
3 weeks at a time

7232
03:51:40,400 --> 03:51:41,533
and then I'd schedule all my nutrition

7233
03:51:41,533 --> 03:51:42,666
consults in one day

7234
03:51:42,866 --> 03:51:44,600
and so I just go back to back to back to back to back

7235
03:51:44,600 --> 03:51:45,700
and so I went over 19

7236
03:51:45,700 --> 03:51:47,100
so I'm feeling horrible about myself

7237
03:51:47,466 --> 03:51:51,100
and this lady comes in and she has a fat ring

7238
03:51:51,100 --> 03:51:52,800
an expensive purse and I was like

7239
03:51:52,800 --> 03:51:55,400
if I don't close this woman I will kill myself

7240
03:51:55,400 --> 03:51:57,400
not really I will just continue to try

7241
03:51:57,400 --> 03:52:00,233
but I felt I was like I have to close this lady

7242
03:52:00,300 --> 03:52:02,266
and so we get through the nutrition part

7243
03:52:02,266 --> 03:52:03,533
and I'm so like

7244
03:52:03,533 --> 03:52:07,000
beat down at this point that I was like hey um

7245
03:52:07,400 --> 03:52:09,833
do you want vanilla or chocolate for your protein

7246
03:52:09,900 --> 03:52:11,533
and she just looked at me and she was like

7247
03:52:11,533 --> 03:52:12,800
which one do you like

7248
03:52:12,800 --> 03:52:15,333
and I was like chocolate and she was like okay

7249
03:52:15,333 --> 03:52:16,066
I'll take that

7250
03:52:16,066 --> 03:52:19,400
I was like and I slid across the counter and I was like

7251
03:52:19,400 --> 03:52:22,366
okay and then I was like uh

7252
03:52:22,533 --> 03:52:26,166
for pre workout do you want kiwi or strawberry

7253
03:52:26,166 --> 03:52:27,466
and then I remember she'd asked me I was like

7254
03:52:27,466 --> 03:52:29,933
I like kiwi she's like I'll take one of those

7255
03:52:29,933 --> 03:52:32,066
so I like put that and now I'm afraid that

7256
03:52:32,066 --> 03:52:33,200
I didn't want to scare her away

7257
03:52:33,200 --> 03:52:35,300
and so I remembered that she

7258
03:52:35,300 --> 03:52:37,466
because everybody had already bought stuff before

7259
03:52:37,466 --> 03:52:38,700
and I had all their contracts here

7260
03:52:38,700 --> 03:52:39,900
because if someone's payment didn't go through

7261
03:52:39,900 --> 03:52:41,333
I would meet them on the council like hey

7262
03:52:41,333 --> 03:52:42,133
your second payment didn't go through

7263
03:52:42,133 --> 03:52:42,966
let's make sure that's

7264
03:52:42,966 --> 03:52:44,766
so I had everybody's cards right there

7265
03:52:44,766 --> 03:52:46,600
and so I'd be like oh um

7266
03:52:46,666 --> 03:52:50,233
do you wanna use the card that ended in 46 96

7267
03:52:50,266 --> 03:52:52,100
and she was like yeah that's fine

7268
03:52:52,333 --> 03:52:55,500
and so I just slid them across the counter

7269
03:52:55,500 --> 03:52:56,666
she grabbed her tubs

7270
03:52:56,666 --> 03:52:58,200
she walked out the door and I was like

7271
03:52:58,200 --> 03:53:00,033
holy shit I know how to sell supplements

7272
03:53:00,266 --> 03:53:01,966
and the craziest thing in the world

7273
03:53:02,066 --> 03:53:04,300
is that I didn't even talk about the products

7274
03:53:04,300 --> 03:53:05,900
I just asked what flavor she wanted

7275
03:53:06,100 --> 03:53:08,100
and so that was the first thing

7276
03:53:08,100 --> 03:53:10,366
I Learned two things on that one experience

7277
03:53:10,400 --> 03:53:12,666
number one was I Learned the a or B sale

7278
03:53:12,666 --> 03:53:14,800
the which one do you prefer sale was an assumed close

7279
03:53:15,000 --> 03:53:16,966
I closed everyone else the rest of the day

7280
03:53:16,966 --> 03:53:18,266
I closed another like 12 appointments

7281
03:53:18,266 --> 03:53:18,600
whatever it was

7282
03:53:18,600 --> 03:53:19,766
I closed every single person the rest of the day

7283
03:53:19,766 --> 03:53:20,566
I was so pumped

7284
03:53:20,566 --> 03:53:23,366
and I closed I I I Learned the card on file close

7285
03:53:23,366 --> 03:53:25,300
which was oh if you have someone's card on file

7286
03:53:25,300 --> 03:53:26,466
I didn't want her to have to take her

7287
03:53:26,466 --> 03:53:27,566
take her wallet out or like

7288
03:53:27,566 --> 03:53:28,566
think about the purchase again

7289
03:53:28,566 --> 03:53:30,266
I was like you just card on file she's like sure

7290
03:53:30,300 --> 03:53:32,100
and so it made it really easy for people to buy

7291
03:53:32,100 --> 03:53:34,133
so those are the two first things I Learned

7292
03:53:34,133 --> 03:53:37,433
the a B upsell and the card on file close boom

7293
03:53:37,500 --> 03:53:39,266
that was the first thing that I Learned

7294
03:53:39,266 --> 03:53:40,833
that became part of the mini close

7295
03:53:40,866 --> 03:53:43,366
the second thing I Learned and this is much later

7296
03:53:43,366 --> 03:53:44,866
so now I'm I'm kind of a closing machine

7297
03:53:44,866 --> 03:53:46,733
I'm closing five to ten thousand dollars a day

7298
03:53:46,733 --> 03:53:49,000
when I do my supplement sales days alright

7299
03:53:49,000 --> 03:53:50,733
and so now I've got this lady who comes in

7300
03:53:50,733 --> 03:53:52,333
I got remember I got back to back appointments

7301
03:53:52,333 --> 03:53:55,533
so I would be taking two appointments every 30 minutes

7302
03:53:55,533 --> 03:53:58,333
so I would do 48 sales consults in one day

7303
03:53:58,333 --> 03:53:59,666
one on one or sorry not one on one

7304
03:53:59,666 --> 03:54:01,500
one on two four per hour

7305
03:54:01,866 --> 03:54:03,900
and so I would go through these

7306
03:54:03,900 --> 03:54:05,766
and so this so I had to be on time

7307
03:54:05,766 --> 03:54:07,633
and so this lady comes in

7308
03:54:07,666 --> 03:54:09,333
and she will not stop asking me questions

7309
03:54:09,333 --> 03:54:10,966
she's like well what if I'm what if I'm traveling

7310
03:54:10,966 --> 03:54:12,066
what if I don't have this with me

7311
03:54:12,066 --> 03:54:13,300
what if it just asking all the stuff

7312
03:54:13,300 --> 03:54:14,700
and she's like well do I take this one at night

7313
03:54:14,700 --> 03:54:15,300
this one in the morning

7314
03:54:15,300 --> 03:54:17,666
and I was like losing my mind and so finally

7315
03:54:17,666 --> 03:54:20,800
I just turned her meal plan over and I just wrote like

7316
03:54:20,800 --> 03:54:22,266
take two of these at this time

7317
03:54:22,266 --> 03:54:23,166
take two of this at this time

7318
03:54:23,166 --> 03:54:23,900
one of these at this time

7319
03:54:23,900 --> 03:54:24,566
blah blah blah

7320
03:54:24,566 --> 03:54:26,000
and this was how much when

7321
03:54:26,000 --> 03:54:27,100
how many what if it's working

7322
03:54:27,100 --> 03:54:28,300
what if I'm at home etcetera right

7323
03:54:28,300 --> 03:54:29,733
so I wrote down everything they had to do

7324
03:54:29,733 --> 03:54:31,800
and I went late so now the next lady

7325
03:54:31,800 --> 03:54:32,566
and this was the tough part

7326
03:54:32,566 --> 03:54:33,933
because the next lady had come in already

7327
03:54:33,933 --> 03:54:34,766
so she's sitting there

7328
03:54:34,766 --> 03:54:36,200
waiting for me to finish with this

7329
03:54:36,266 --> 03:54:37,266
this chatterbox

7330
03:54:37,666 --> 03:54:39,933
and so the next lady comes up and I'm like okay

7331
03:54:39,933 --> 03:54:40,966
I gotta get through this one quick

7332
03:54:40,966 --> 03:54:42,233
so I can get back on schedule

7333
03:54:42,266 --> 03:54:43,300
and then she just says hey

7334
03:54:43,300 --> 03:54:45,600
can you do what you did for that lady for me

7335
03:54:46,366 --> 03:54:48,100
and I was like ugh

7336
03:54:48,133 --> 03:54:49,600
okay great

7337
03:54:49,900 --> 03:54:52,300
but here's what happened the first lady

7338
03:54:52,300 --> 03:54:53,966
I had gone through the pitch for every product

7339
03:54:53,966 --> 03:54:55,666
and then she'd ask all these questions

7340
03:54:55,666 --> 03:54:58,566
this lady I just said shoot

7341
03:54:58,566 --> 03:55:00,600
to get back on track I just I said okay

7342
03:55:00,600 --> 03:55:01,366
you're gonna need two of these

7343
03:55:01,366 --> 03:55:03,633
you need one of these you need two of these great

7344
03:55:03,733 --> 03:55:06,366
and at the end I said

7345
03:55:06,366 --> 03:55:08,066
caught on file and she was like yeah

7346
03:55:08,066 --> 03:55:10,266
that's fine and then she bought everything

7347
03:55:10,266 --> 03:55:11,600
and I was like holy crap

7348
03:55:11,600 --> 03:55:13,966
I didn't even so

7349
03:55:14,000 --> 03:55:15,400
what I Learned was

7350
03:55:15,400 --> 03:55:17,300
detailed and personalized instruction

7351
03:55:17,300 --> 03:55:19,866
explaining post purchase behavior

7352
03:55:19,866 --> 03:55:21,933
increase the likelihood that they buy

7353
03:55:21,933 --> 03:55:24,000
more than vague and general instructions

7354
03:55:24,300 --> 03:55:27,366
so basically this is how you're gonna use this thing

7355
03:55:27,366 --> 03:55:28,866
assumes the purchase

7356
03:55:29,266 --> 03:55:30,733
why am I gonna spend the time to say

7357
03:55:30,733 --> 03:55:32,066
you're gonna take two of these in the morning

7358
03:55:32,066 --> 03:55:33,766
one of these at night and then the person's like

7359
03:55:33,800 --> 03:55:35,200
oh I'm not buying any of it

7360
03:55:35,200 --> 03:55:37,200
it'll feel like a tremendous waste of time for them

7361
03:55:37,200 --> 03:55:38,700
so again feeling that like

7362
03:55:38,700 --> 03:55:42,200
it's assumed it's part of the thing required

7363
03:55:42,200 --> 03:55:44,433
no strolling recommended yes

7364
03:55:44,466 --> 03:55:46,866
and so that was the third tactic I Learned a B clothes

7365
03:55:46,866 --> 03:55:49,000
I Learned the card on file from the first lady

7366
03:55:49,000 --> 03:55:49,700
and then this one

7367
03:55:49,700 --> 03:55:51,333
I Learned about detailed prescriptions

7368
03:55:51,333 --> 03:55:52,866
so I call this the prescription clothes

7369
03:55:53,366 --> 03:55:55,533
the third piece that

7370
03:55:55,533 --> 03:55:57,133
that completed the four part puzzle

7371
03:55:57,133 --> 03:55:58,300
that became the menu sale

7372
03:55:58,300 --> 03:56:00,566
and this is the most deadly of them

7373
03:56:00,566 --> 03:56:03,766
it's so good so now

7374
03:56:03,766 --> 03:56:05,766
I already told you about the seating thing earlier

7375
03:56:05,766 --> 03:56:08,466
that's like I it's that's so savage

7376
03:56:08,466 --> 03:56:10,366
and it's still not good enough to make

7377
03:56:10,366 --> 03:56:12,500
these four into what the menu

7378
03:56:12,500 --> 03:56:13,966
close is right

7379
03:56:14,000 --> 03:56:16,600
so this one so now this fast forward a little bit more

7380
03:56:16,600 --> 03:56:18,600
so now I'm a closing machine

7381
03:56:18,600 --> 03:56:20,500
I'm prescribing things I'm getting everybody to buy

7382
03:56:20,500 --> 03:56:23,133
right so now I'm on the road launching gyms

7383
03:56:23,133 --> 03:56:25,266
and so I would get good enough that I would

7384
03:56:25,266 --> 03:56:26,866
I would just sell out of everything I had right

7385
03:56:26,866 --> 03:56:29,100
and basically whatever I had left I'd be like oh yeah

7386
03:56:29,100 --> 03:56:32,800
you want kiwi and banana and like just whatever I had

7387
03:56:32,800 --> 03:56:34,366
I was like these are the ones you're taking

7388
03:56:34,500 --> 03:56:37,766
so I could just sell out all the stuff I had and so um

7389
03:56:37,966 --> 03:56:39,466
I sold out pretty early this day

7390
03:56:39,466 --> 03:56:40,700
for a couple key products

7391
03:56:40,700 --> 03:56:42,533
and normally it would have been fine

7392
03:56:42,533 --> 03:56:43,500
cause I would just like

7393
03:56:43,900 --> 03:56:45,466
basically recommend different products

7394
03:56:45,466 --> 03:56:47,400
different flavors that I I hadn't run out of

7395
03:56:47,400 --> 03:56:50,200
but this lady her friend had come at like 10 am

7396
03:56:50,200 --> 03:56:51,866
and she was coming at like 3

7397
03:56:51,933 --> 03:56:53,066
and so I'd already had like

7398
03:56:53,066 --> 03:56:56,066
20 more consults between the first lady and her friend

7399
03:56:56,166 --> 03:56:57,266
and her friend was just like

7400
03:56:57,266 --> 03:56:59,300
hey just give me all the stuff you gave me

7401
03:56:59,300 --> 03:57:01,300
you gave Sandra and I was like

7402
03:57:01,300 --> 03:57:03,166
ah OK uh

7403
03:57:03,266 --> 03:57:05,866
don't have that so what I started doing I said OK

7404
03:57:05,866 --> 03:57:07,933
well I don't have this cause I ran out I was like

7405
03:57:07,933 --> 03:57:09,566
but you can get this from down the street

7406
03:57:09,566 --> 03:57:10,500
it's not gonna be as good

7407
03:57:10,500 --> 03:57:12,333
but it'll get you through the through the program

7408
03:57:12,333 --> 03:57:14,566
and this one you can get from this store

7409
03:57:14,566 --> 03:57:16,366
this is the brand you want it's not gonna be as good

7410
03:57:16,366 --> 03:57:17,766
but it'll get you through the thing

7411
03:57:18,000 --> 03:57:19,300
and so she was like OK

7412
03:57:19,300 --> 03:57:21,000
thanks so much I really appreciate it

7413
03:57:21,100 --> 03:57:22,533
but after telling her

7414
03:57:22,533 --> 03:57:24,200
the two or three things that she could get

7415
03:57:24,200 --> 03:57:25,366
from somebody else

7416
03:57:25,400 --> 03:57:28,166
I then was like but you're gonna want two of these

7417
03:57:28,166 --> 03:57:29,500
which you'll take in the morning one of these

7418
03:57:29,500 --> 03:57:30,633
would you take it this time

7419
03:57:30,733 --> 03:57:32,366
great you wanna use the card you have on file

7420
03:57:32,366 --> 03:57:33,800
and she was like sure

7421
03:57:34,733 --> 03:57:36,500
and so what I realized was that

7422
03:57:36,500 --> 03:57:38,700
I went out of my way to cross out what she didn't need

7423
03:57:38,700 --> 03:57:41,500
and this built enough goodwill to upsell what she did

7424
03:57:42,166 --> 03:57:43,800
and so what I realized later also

7425
03:57:43,800 --> 03:57:45,266
cause she just it just went like water

7426
03:57:45,266 --> 03:57:45,600
I can like

7427
03:57:45,600 --> 03:57:48,100
I can tell like I have enough sales shops to be like

7428
03:57:48,100 --> 03:57:49,400
that was a little too easy

7429
03:57:49,400 --> 03:57:51,233
like that was way easier than normal

7430
03:57:51,500 --> 03:57:54,000
and so I started keeping products

7431
03:57:54,300 --> 03:57:55,666
just to cross them out

7432
03:57:55,933 --> 03:57:57,366
and so I'll explain it like this

7433
03:57:57,366 --> 03:57:59,000
it's not that I I would have products

7434
03:57:59,000 --> 03:58:00,400
that we necessarily wouldn't sell

7435
03:58:00,400 --> 03:58:01,800
it was more that I had some products that I knew

7436
03:58:01,800 --> 03:58:02,800
almost no one was gonna buy

7437
03:58:02,800 --> 03:58:04,266
I'm selling predominantly females

7438
03:58:04,366 --> 03:58:05,333
so I had weight gainer

7439
03:58:05,333 --> 03:58:06,866
now if I had a guy who's trying to get bigger

7440
03:58:06,866 --> 03:58:09,600
then sure but like that would be like one out of 100

7441
03:58:09,600 --> 03:58:13,300
and so for 99% of women that were coming in the door

7442
03:58:13,300 --> 03:58:13,700
I would be like

7443
03:58:13,700 --> 03:58:14,933
well you're not trying to gain weight are you

7444
03:58:14,933 --> 03:58:17,066
they'd say no and I would cross out the weight gainer

7445
03:58:17,066 --> 03:58:17,766
and then I'd be like hey

7446
03:58:17,766 --> 03:58:18,900
well you're not trying to get any chest hair

7447
03:58:18,900 --> 03:58:20,066
get a deeper voice anything like that

7448
03:58:20,066 --> 03:58:20,600
they're like no I'm like

7449
03:58:20,600 --> 03:58:22,733
alright well we're not gonna use the test booster right

7450
03:58:22,733 --> 03:58:25,766
and so I would cross out two or three things on my menu

7451
03:58:25,900 --> 03:58:28,266
and then I would say great

7452
03:58:28,266 --> 03:58:30,300
you can do this now I did have some options

7453
03:58:30,300 --> 03:58:31,666
for example fish oil

7454
03:58:31,800 --> 03:58:33,000
where I would say listen

7455
03:58:33,100 --> 03:58:35,666
I like it was a low margin product

7456
03:58:35,866 --> 03:58:39,066
and so I would rather not make $3 on fish oil

7457
03:58:39,066 --> 03:58:41,200
and make 40 on a fat burner

7458
03:58:41,266 --> 03:58:43,166
and give the fish oil away to close

7459
03:58:43,166 --> 03:58:44,966
100% of people on the fat burner

7460
03:58:45,333 --> 03:58:51,033
and so that was how I realized what I call unselling

7461
03:58:51,300 --> 03:58:53,933
which is you start by telling them what they don't need

7462
03:58:53,933 --> 03:58:55,000
so that they believe you

7463
03:58:55,000 --> 03:58:56,566
when you tell them what they do need

7464
03:58:56,666 --> 03:58:59,533
and so that is what created the unsell prescribe

7465
03:58:59,533 --> 03:59:02,366
ask what they prefer make it easier to pay menu close

7466
03:59:02,700 --> 03:59:05,600
so you unsell by telling customers what they don't need

7467
03:59:05,600 --> 03:59:07,300
so that you can emphasize what they do here

7468
03:59:07,300 --> 03:59:09,000
instead of asking if they want to buy or not

7469
03:59:09,000 --> 03:59:10,600
you explain what they don't need

7470
03:59:10,600 --> 03:59:12,400
as a way to get them excited about what they do

7471
03:59:12,400 --> 03:59:15,066
so unsells vary based on customer needs

7472
03:59:15,300 --> 03:59:16,966
when some options work best

7473
03:59:16,966 --> 03:59:19,166
you can cross out the rest and that rhymes

7474
03:59:19,300 --> 03:59:21,766
so after telling them what they don't need

7475
03:59:21,766 --> 03:59:25,433
you then prescribe what they do need

7476
03:59:25,466 --> 03:59:27,700
so all the unselling is the cross out

7477
03:59:27,700 --> 03:59:29,200
then we move to prescription

7478
03:59:29,266 --> 03:59:31,166
so in prescription we tell them what they do need

7479
03:59:31,166 --> 03:59:33,200
prescription upsells work well when offering a

7480
03:59:33,200 --> 03:59:35,033
choice is inconvenient

7481
03:59:35,133 --> 03:59:37,000
and you've only one thing that solves the problem

7482
03:59:37,000 --> 03:59:37,966
so if you've only one thing

7483
03:59:37,966 --> 03:59:39,666
it's like you're only taking this fat burner

7484
03:59:39,666 --> 03:59:41,133
there's no flavors for the fat burner

7485
03:59:41,133 --> 03:59:41,900
so you're just saying

7486
03:59:41,900 --> 03:59:44,000
this is how many you need to take at this time

7487
03:59:44,000 --> 03:59:45,866
prescription upselling has two important components

7488
03:59:46,233 --> 03:59:46,766
first

7489
03:59:46,766 --> 03:59:49,300
you have to explain how it integrates with the offers

7490
03:59:49,300 --> 03:59:52,366
they already bought so they already bought service

7491
03:59:52,400 --> 03:59:53,100
this is gonna

7492
03:59:53,100 --> 03:59:54,866
integrate with how you use our weight loss services

7493
03:59:54,866 --> 03:59:56,733
or our workouts or whatever second

7494
03:59:56,733 --> 03:59:58,500
you personalize in detail

7495
03:59:58,500 --> 04:00:00,800
how to maximize its value for them

7496
04:00:00,800 --> 04:00:01,466
so here

7497
04:00:01,466 --> 04:00:03,600
instead of asking if they want to buy it or not

7498
04:00:03,600 --> 04:00:05,566
you explain how to use it

7499
04:00:05,800 --> 04:00:08,566
as if they already have bought it again

7500
04:00:08,566 --> 04:00:10,366
we remove the option of not buying

7501
04:00:10,366 --> 04:00:13,166
to lower the chance that they don't buy as uh

7502
04:00:13,166 --> 04:00:16,066
and and I once uh and once I've told them exactly

7503
04:00:16,266 --> 04:00:17,700
how they're going to use everything

7504
04:00:18,766 --> 04:00:23,066
we then ask them if they prefer a or B so we say okay

7505
04:00:23,066 --> 04:00:24,733
what's your preferences the a

7506
04:00:24,733 --> 04:00:27,066
B upsells work for multiple offers

7507
04:00:27,100 --> 04:00:29,333
that solve the same problem alright

7508
04:00:29,333 --> 04:00:31,566
so you make a B upsells by asking preference

7509
04:00:31,566 --> 04:00:33,966
instead of asking if customers want to buy a product

7510
04:00:33,966 --> 04:00:36,700
yes or no we ask which one they prefer a or B

7511
04:00:36,733 --> 04:00:39,966
so either choice results in an upsell so basically

7512
04:00:40,100 --> 04:00:42,133
when you give people the option not to buy

7513
04:00:42,133 --> 04:00:43,466
some people don't buy so

7514
04:00:43,466 --> 04:00:45,700
I give the option to pick between two buying options

7515
04:00:45,700 --> 04:00:46,500
that are simpler

7516
04:00:46,700 --> 04:00:48,900
and once they know which one they're buying

7517
04:00:49,000 --> 04:00:50,100
and how they're gonna use it

7518
04:00:50,100 --> 04:00:53,266
I suggest the easiest way for them to pay boom

7519
04:00:53,266 --> 04:00:54,833
we give the card on file close

7520
04:00:54,866 --> 04:00:58,033
which is the cherry on top of this upsell sweetness

7521
04:00:58,133 --> 04:00:59,366
alright so I literally ask

7522
04:00:59,366 --> 04:01:01,666
do you want to use the card on file just like that

7523
04:01:01,666 --> 04:01:04,200
so here instead of asking if they wanna pay or not

7524
04:01:04,200 --> 04:01:07,000
we refer to ways they have already paid in the past

7525
04:01:07,066 --> 04:01:08,466
and this gets more people to buy

7526
04:01:08,466 --> 04:01:10,666
because it lowers the hidden costs of buying

7527
04:01:10,666 --> 04:01:12,100
picking out which card you wanna use

7528
04:01:12,100 --> 04:01:13,133
taking it out

7529
04:01:13,133 --> 04:01:15,766
being reminded of ugly buying decisions in the past

7530
04:01:15,766 --> 04:01:17,400
cause a lot of times some people like

7531
04:01:17,566 --> 04:01:19,866
there is a minor decision that goes when you say yes

7532
04:01:19,866 --> 04:01:21,133
and then there's a second yes

7533
04:01:21,133 --> 04:01:22,400
when you reach in your pocket

7534
04:01:22,400 --> 04:01:23,966
and then you're looking at your card

7535
04:01:23,966 --> 04:01:24,800
and then you grab the card

7536
04:01:24,800 --> 04:01:26,766
like there's a there's another decision that happens

7537
04:01:26,766 --> 04:01:28,700
we avoid that entire decision making process

7538
04:01:28,700 --> 04:01:30,666
by just saying when is the card on file

7539
04:01:30,700 --> 04:01:32,533
yes and we remove the pain

7540
04:01:32,533 --> 04:01:34,033
associated with making the decision

7541
04:01:34,133 --> 04:01:36,766
so even the hassle of buying stuff in a rush

7542
04:01:36,766 --> 04:01:38,600
so sometimes I'd have people who are about to get

7543
04:01:38,600 --> 04:01:38,966
they're like hey

7544
04:01:38,966 --> 04:01:40,466
I gotta get this thing like caught on fire

7545
04:01:40,466 --> 04:01:40,933
and they're like yeah yeah

7546
04:01:40,933 --> 04:01:41,600
it's fine

7547
04:01:41,600 --> 04:01:44,200
and so if I if I weren't able to do that close

7548
04:01:44,200 --> 04:01:46,066
they'd be like uh I'll pick them up later

7549
04:01:46,066 --> 04:01:47,833
and I'll come back and I'll lose the sale

7550
04:01:48,100 --> 04:01:50,900
and so it's also the fastest way to close

7551
04:01:50,900 --> 04:01:52,466
and that is how that works

7552
04:01:52,666 --> 04:01:54,200
so let me give you some examples

7553
04:01:54,200 --> 04:01:58,700
and these are fire as fuck hahaha alright

7554
04:01:58,700 --> 04:02:02,433
so if I'm a massage therapist I would unsell

7555
04:02:02,566 --> 04:02:04,933
I would say hey we have a lymphatic massage available

7556
04:02:04,933 --> 04:02:06,400
but I don't think you're pregnant

7557
04:02:06,400 --> 04:02:07,533
or just out of surgery right

7558
04:02:07,533 --> 04:02:09,266
so we can cross that out fantastic

7559
04:02:09,266 --> 04:02:12,300
so then we'd prescribe so since your shoulder hurts

7560
04:02:12,300 --> 04:02:13,366
we'll heat you up first

7561
04:02:13,366 --> 04:02:14,400
then we'll hit your trigger points

7562
04:02:14,400 --> 04:02:16,200
then after that we'll do some dynamic stretches

7563
04:02:16,200 --> 04:02:18,600
so that's a prescription now we say

7564
04:02:18,600 --> 04:02:18,766
so

7565
04:02:18,766 --> 04:02:20,766
would you rather do it before work or on the way home

7566
04:02:20,766 --> 04:02:21,500
then great

7567
04:02:21,500 --> 04:02:24,166
you wanna use a card on file done if you're like

7568
04:02:24,166 --> 04:02:26,733
I can't AB you can absolutely AB anything

7569
04:02:26,733 --> 04:02:28,533
and I'll show you how to do in a second alright

7570
04:02:28,533 --> 04:02:30,700
so I'll give you another example dog food so uh

7571
04:02:30,700 --> 04:02:32,566
you're not gonna need the small bag of puppy stuff

7572
04:02:32,566 --> 04:02:33,400
you've got a big dog

7573
04:02:33,400 --> 04:02:35,066
so you don't need these vitamins either

7574
04:02:35,066 --> 04:02:37,166
because we've got that in the food already

7575
04:02:37,166 --> 04:02:38,133
so you don't even worry about that

7576
04:02:38,133 --> 04:02:38,800
they're like oh wow

7577
04:02:38,800 --> 04:02:40,100
so nice this guy it's already covered

7578
04:02:40,100 --> 04:02:41,133
inside of the food that I'm buying

7579
04:02:41,133 --> 04:02:41,766
then we say so

7580
04:02:41,766 --> 04:02:43,700
but what you're going to do is give your dog

7581
04:02:43,700 --> 04:02:46,000
one of these joint chews at each meal alright

7582
04:02:46,000 --> 04:02:46,866
every 90 days

7583
04:02:46,866 --> 04:02:49,033
you give them one of these wafers for heartworms

7584
04:02:49,233 --> 04:02:51,600
also make sure to bring him in back next month

7585
04:02:51,600 --> 04:02:53,233
and we can get that booked right now

7586
04:02:53,266 --> 04:02:55,900
does your dog prefer chicken or beef flavor

7587
04:02:55,900 --> 04:02:57,433
great Wanna use the card you have on file

7588
04:02:57,633 --> 04:02:58,966
done digital products

7589
04:02:58,966 --> 04:03:01,400
so uh listen you don't need all 8 courses yet

7590
04:03:01,400 --> 04:03:02,933
you just need to solve X y and Z

7591
04:03:02,933 --> 04:03:03,533
so I'll tell you what

7592
04:03:03,533 --> 04:03:05,666
I'll send you some free stuff that solves X and y

7593
04:03:05,666 --> 04:03:08,066
and you'll just need one course to cover problem Z

7594
04:03:08,100 --> 04:03:08,866
but to solve Z

7595
04:03:08,866 --> 04:03:10,133
you're definitely going to do the course

7596
04:03:10,133 --> 04:03:11,700
in this particular way

7597
04:03:11,700 --> 04:03:13,300
can you put an hour a day towards it

7598
04:03:13,300 --> 04:03:14,133
okay great so

7599
04:03:14,133 --> 04:03:14,966
this will prevent any other

7600
04:03:14,966 --> 04:03:16,500
Z problems from cropping up later

7601
04:03:16,500 --> 04:03:17,466
a or B so

7602
04:03:17,466 --> 04:03:19,700
would you rather have direct message or phone support

7603
04:03:19,700 --> 04:03:22,600
okay great and would you rather start today or Monday

7604
04:03:22,600 --> 04:03:24,100
got it alright awesome

7605
04:03:24,100 --> 04:03:26,166
usually card you have on file done

7606
04:03:26,166 --> 04:03:29,300
so you can use that 4 step process with anything

7607
04:03:29,666 --> 04:03:33,000
now important points anything is airb sellable

7608
04:03:33,000 --> 04:03:34,333
do you wanna start on Monday or Tuesday

7609
04:03:34,333 --> 04:03:37,266
do you wanna have John or Amy as your as your person

7610
04:03:37,266 --> 04:03:38,700
do you wanna do your workouts in the morning

7611
04:03:38,700 --> 04:03:40,166
or the evening do you want paper or plastic

7612
04:03:40,166 --> 04:03:41,566
black or white cherry or strawberry

7613
04:03:41,566 --> 04:03:43,400
it doesn't matter whatever it is

7614
04:03:43,400 --> 04:03:44,500
if you have one thing you can

7615
04:03:44,500 --> 04:03:45,933
think about particular features

7616
04:03:45,933 --> 04:03:46,933
that vary within the business

7617
04:03:46,933 --> 04:03:48,200
you want phone support you want chat support

7618
04:03:48,200 --> 04:03:49,600
it does not matter

7619
04:03:49,766 --> 04:03:51,866
you can always make something airb sellable

7620
04:03:51,866 --> 04:03:53,833
so that you can have a preferential close

7621
04:03:53,866 --> 04:03:55,333
if you make an airb offer

7622
04:03:55,333 --> 04:03:57,200
I recommend adding a nudge

7623
04:03:57,200 --> 04:03:58,266
so that was when the lady said

7624
04:03:58,266 --> 04:04:00,700
which one do you prefer so this is where you say

7625
04:04:00,700 --> 04:04:03,900
I like strawberry a lot of people like Amy John's

7626
04:04:03,900 --> 04:04:05,533
really good with high schoolers right

7627
04:04:05,533 --> 04:04:07,666
so you make a nudge based on the customer's needs

7628
04:04:07,666 --> 04:04:08,766
so uh

7629
04:04:08,766 --> 04:04:09,733
do you want chicken or beef

7630
04:04:09,733 --> 04:04:11,900
a lot of the big dogs like beef done

7631
04:04:11,900 --> 04:04:13,600
it's just like you don't you wanna present

7632
04:04:13,600 --> 04:04:14,800
so this is what happens

7633
04:04:14,900 --> 04:04:17,166
we present the illusion of choice

7634
04:04:17,333 --> 04:04:19,466
and then we remove the friction of choice

7635
04:04:19,466 --> 04:04:22,566
by nudging this one so they have the illusion yes

7636
04:04:22,566 --> 04:04:23,500
I'm buying something

7637
04:04:23,500 --> 04:04:24,933
but then we do this and they're like great

7638
04:04:24,933 --> 04:04:26,433
I don't have to think about that sounds great

7639
04:04:26,800 --> 04:04:28,266
if you go to a restaurant and it's like

7640
04:04:28,266 --> 04:04:29,200
hey uh

7641
04:04:29,200 --> 04:04:30,133
do you want uh

7642
04:04:30,133 --> 04:04:32,500
flambe or do you want creme brulee

7643
04:04:32,566 --> 04:04:33,500
and you're like they're like

7644
04:04:33,500 --> 04:04:34,700
most people get the creme brulee

7645
04:04:34,700 --> 04:04:36,566
or we get a lot of great reviews for the creme brulee

7646
04:04:36,566 --> 04:04:37,933
people always come back for the creme brulee

7647
04:04:37,933 --> 04:04:39,733
if you say that right after making the choice

7648
04:04:39,733 --> 04:04:41,700
we know I got the illusion

7649
04:04:41,700 --> 04:04:43,666
but then this is the one that they want me to buy

7650
04:04:43,666 --> 04:04:45,600
which might have three times the margin now

7651
04:04:45,600 --> 04:04:48,533
if you sell out this is a pro tip for me

7652
04:04:48,533 --> 04:04:50,833
two things one is if you sell out of something

7653
04:04:50,866 --> 04:04:52,800
you can then just nudge stuff

7654
04:04:52,800 --> 04:04:54,266
that you're lower on inventory

7655
04:04:54,366 --> 04:04:55,933
so if you've got three bottles of this

7656
04:04:55,933 --> 04:04:59,133
and 25 bottles of that just nudge differently now

7657
04:04:59,133 --> 04:05:00,500
if you sell out completely

7658
04:05:00,500 --> 04:05:01,566
this is something I Learned later

7659
04:05:01,566 --> 04:05:02,833
if it's physical products

7660
04:05:03,000 --> 04:05:05,866
um or if you're at capacity for your service

7661
04:05:06,000 --> 04:05:07,933
take payment and deliver late mean

7662
04:05:07,933 --> 04:05:09,700
not deliver late in terms of expectations

7663
04:05:09,766 --> 04:05:12,966
but deliver at a delay and I found out that people

7664
04:05:12,966 --> 04:05:14,733
cared way less about it being a delay

7665
04:05:14,733 --> 04:05:17,000
and care way more about missing expectations

7666
04:05:17,133 --> 04:05:19,033
and so if I said hey

7667
04:05:19,533 --> 04:05:20,666
I'm gonna take this order for you

7668
04:05:20,666 --> 04:05:21,800
so you get exactly what you need

7669
04:05:21,800 --> 04:05:23,633
you're gonna get in the mail in 7 days

7670
04:05:23,666 --> 04:05:24,466
they were fine with it

7671
04:05:24,466 --> 04:05:26,333
I thought that if they didn't walk out with it

7672
04:05:26,333 --> 04:05:28,433
no one would buy not the case at all

7673
04:05:28,666 --> 04:05:29,800
people were totally fine buying

7674
04:05:29,800 --> 04:05:30,766
if I set the expectation now

7675
04:05:30,766 --> 04:05:31,133
if I said

7676
04:05:31,133 --> 04:05:32,700
they're gonna come in seven and they came in 10

7677
04:05:32,700 --> 04:05:34,500
they hated me they if I said seven

7678
04:05:34,500 --> 04:05:35,966
they came in four they were happy

7679
04:05:36,100 --> 04:05:38,100
and so if you have a service thing and you say hey

7680
04:05:38,100 --> 04:05:39,000
you're on the phone you know

7681
04:05:39,000 --> 04:05:40,100
you can only take seven people in a week

7682
04:05:40,100 --> 04:05:41,366
and you already have eight sold

7683
04:05:41,366 --> 04:05:41,933
then you're like shoot

7684
04:05:41,933 --> 04:05:42,700
I can't take this guy on

7685
04:05:42,700 --> 04:05:43,900
but I don't want to miss this sale

7686
04:05:43,966 --> 04:05:46,100
take the deposit start them in 14 days

7687
04:05:46,466 --> 04:05:48,366
now this is something that I Learned later

7688
04:05:48,366 --> 04:05:50,866
because I had to teach my staff this process

7689
04:05:51,100 --> 04:05:51,466
and so

7690
04:05:51,466 --> 04:05:54,300
what I found out was that employees love unselling

7691
04:05:54,400 --> 04:05:57,800
because it's like it's because you feel good right

7692
04:05:57,800 --> 04:05:59,300
so you're talking to the prospect

7693
04:05:59,300 --> 04:06:00,566
and cause everybody basically

7694
04:06:00,566 --> 04:06:02,400
it's like here are your homie hookups

7695
04:06:02,400 --> 04:06:03,666
everybody wants to hook up a customer

7696
04:06:03,666 --> 04:06:04,700
cause then they get a little authority

7697
04:06:04,700 --> 04:06:06,166
little power they get report with the customer

7698
04:06:06,166 --> 04:06:07,966
all those things and so you say hey

7699
04:06:07,966 --> 04:06:10,700
I'm gonna help you get a homie hookup by design

7700
04:06:10,966 --> 04:06:13,133
so these are the three things that you can cross out

7701
04:06:13,133 --> 04:06:14,200
and you can these are the two products

7702
04:06:14,200 --> 04:06:15,633
you can tell them to buy down the street

7703
04:06:15,733 --> 04:06:17,300
and now once an employee doing it

7704
04:06:17,300 --> 04:06:19,300
it actually gets even more powerful

7705
04:06:19,300 --> 04:06:20,666
because if it's the owner doing it

7706
04:06:20,666 --> 04:06:21,600
then they're like huh

7707
04:06:21,600 --> 04:06:22,566
if an employee does it

7708
04:06:22,566 --> 04:06:25,000
it's very common for employees to not have the best

7709
04:06:25,000 --> 04:06:26,300
interest of the business at heart

7710
04:06:26,533 --> 04:06:29,900
and so we lean into that bias that most people know of

7711
04:06:29,900 --> 04:06:30,600
that they're like hey

7712
04:06:30,600 --> 04:06:32,333
don't tell the boss but now when they're saying

7713
04:06:32,333 --> 04:06:34,566
don't tell the boss but you do need these ones

7714
04:06:34,566 --> 04:06:36,433
the whole time it's scripted

7715
04:06:36,800 --> 04:06:38,200
if you have two options

7716
04:06:38,200 --> 04:06:39,466
so this is what happens you're like okay

7717
04:06:39,466 --> 04:06:40,366
what if I have two options

7718
04:06:40,366 --> 04:06:42,700
but I want people to buy both alright

7719
04:06:42,866 --> 04:06:44,000
so the way we think about this

7720
04:06:44,000 --> 04:06:45,900
so there's the economist that made this amazing

7721
04:06:45,900 --> 04:06:49,100
case study on this so they had their print stuff

7722
04:06:49,166 --> 04:06:50,933
and they wanted to offer a digital offering

7723
04:06:50,933 --> 04:06:52,400
of the economist subscription

7724
04:06:52,400 --> 04:06:53,900
that was the most profitable people they could

7725
04:06:53,900 --> 04:06:56,166
they could basically make more gross profit on print

7726
04:06:56,533 --> 04:06:58,566
relative to the price so they could charge more for it

7727
04:06:58,566 --> 04:06:59,966
relative to cost than they could on digital

7728
04:06:59,966 --> 04:07:00,800
cause people's

7729
04:07:00,800 --> 04:07:02,933
perception of digital is lower in terms of value

7730
04:07:02,933 --> 04:07:04,566
thinking people would buy both

7731
04:07:04,600 --> 04:07:06,133
the economist offered the following

7732
04:07:06,133 --> 04:07:09,100
so they said $59 a year for the digital subscription

7733
04:07:09,100 --> 04:07:11,566
and 1 25 per year for digital plus print

7734
04:07:11,566 --> 04:07:13,300
they figured everyone would take that offer

7735
04:07:13,566 --> 04:07:16,266
but everyone just took the 59 dollar

7736
04:07:16,266 --> 04:07:18,466
your digital and said don't need the print anymore

7737
04:07:18,466 --> 04:07:19,700
so their print sales plummeted

7738
04:07:19,700 --> 04:07:21,300
and as a result they made way less money

7739
04:07:21,566 --> 04:07:24,800
bad for them so this is what they did to fix it

7740
04:07:25,600 --> 04:07:27,900
they added a decoy option in the middle

7741
04:07:29,066 --> 04:07:31,166
now the numbers here is just so that you can

7742
04:07:31,166 --> 04:07:32,166
think about whatever you want

7743
04:07:32,166 --> 04:07:33,600
in terms of relative price

7744
04:07:33,733 --> 04:07:35,500
but the actual thing that they did was

7745
04:07:35,500 --> 04:07:38,166
they had a $59 per year digital

7746
04:07:38,200 --> 04:07:40,733
the one 25 per year digital plus print

7747
04:07:40,733 --> 04:07:41,800
but this is the decoy

7748
04:07:41,800 --> 04:07:44,900
they added a print only for 1:00 25 a year

7749
04:07:44,900 --> 04:07:45,200
meaning

7750
04:07:45,200 --> 04:07:47,600
they took their best offer and just cut it in half

7751
04:07:47,600 --> 04:07:49,033
but kept the price the same

7752
04:07:49,133 --> 04:07:50,666
and so now if you pay 1

7753
04:07:50,666 --> 04:07:52,800
25 for either of these things now you're like

7754
04:07:52,800 --> 04:07:53,800
well you know what

7755
04:07:53,933 --> 04:07:56,700
I just basically get the digital for free here

7756
04:07:56,700 --> 04:07:58,400
whereas here I have to pay for it

7757
04:07:58,466 --> 04:08:00,300
so now this feels like the better deal

7758
04:08:00,300 --> 04:08:01,533
and then they fixed the sales

7759
04:08:01,533 --> 04:08:03,466
and then way more people took option C

7760
04:08:03,500 --> 04:08:05,733
so simply by adding the middle option

7761
04:08:05,733 --> 04:08:07,900
they got more people to take both

7762
04:08:07,900 --> 04:08:10,533
and so right now if you have two things and you're like

7763
04:08:10,533 --> 04:08:12,000
well how do I get them to buy both

7764
04:08:12,000 --> 04:08:13,633
add the third offer

7765
04:08:13,866 --> 04:08:16,466
that's the same price as both with only one

7766
04:08:16,466 --> 04:08:19,066
bottom line is that you present three options option A

7767
04:08:19,066 --> 04:08:21,900
option B and option C which is a and B

7768
04:08:21,966 --> 04:08:23,500
and you make the price of C

7769
04:08:23,500 --> 04:08:27,233
a and B the same as the more expensive between a or B

7770
04:08:27,400 --> 04:08:29,200
alright so long as you price the three options

7771
04:08:29,200 --> 04:08:31,333
preserve your margins you make customers choice easy

7772
04:08:31,333 --> 04:08:34,600
and then you sell both before people take this

7773
04:08:34,600 --> 04:08:36,566
after more people take that

7774
04:08:36,700 --> 04:08:37,500
so

7775
04:08:38,000 --> 04:08:38,600
money upsells

7776
04:08:38,600 --> 04:08:40,466
work best when you have multiple offers available

7777
04:08:40,466 --> 04:08:42,966
many upsells combine four tactics unselling

7778
04:08:42,966 --> 04:08:45,833
prescribing a B offer and the card on file close

7779
04:08:45,933 --> 04:08:48,100
unselling lower margin stuff where appropriate

7780
04:08:48,100 --> 04:08:49,466
incentivizes higher margin

7781
04:08:49,466 --> 04:08:51,666
upsells encourage employees to unsell

7782
04:08:51,666 --> 04:08:53,266
and game the system on purpose

7783
04:08:53,266 --> 04:08:55,300
by design nudge new customers

7784
04:08:55,300 --> 04:08:56,900
towards the thing that makes sense for them

7785
04:08:56,900 --> 04:08:58,666
or the thing that you have the highest margins

7786
04:08:58,666 --> 04:08:59,866
or the thing that you're running out of

7787
04:08:59,866 --> 04:09:01,200
or that you're not running out of

7788
04:09:01,266 --> 04:09:03,800
uh in terms of directing their buying decisions

7789
04:09:04,400 --> 04:09:05,833
that is the menu up sale

7790
04:09:07,700 --> 04:09:09,700
so we just covered menu up sell

7791
04:09:09,700 --> 04:09:11,600
which is one of my favorite up sells ever

7792
04:09:11,600 --> 04:09:14,333
the anchor up sell is one that is so powerful

7793
04:09:14,333 --> 04:09:16,366
it's one of those like very simple ones

7794
04:09:16,366 --> 04:09:18,566
that can make you a tremendous amount of money

7795
04:09:18,566 --> 04:09:22,166
and so what the menu up sell has in elegance

7796
04:09:22,166 --> 04:09:24,000
the anchor up sell has in brute force

7797
04:09:24,000 --> 04:09:26,333
so let's dive in here's how I Learned it description

7798
04:09:26,333 --> 04:09:27,300
examples important points

7799
04:09:27,300 --> 04:09:29,833
same as before let's rock and roll

7800
04:09:29,933 --> 04:09:33,500
so I had spent 5 years plus in casual clothes

7801
04:09:33,500 --> 04:09:35,666
sweats and a tank top as a gym owner

7802
04:09:35,666 --> 04:09:38,866
like the nicest thing I ever wore was a tank top haha

7803
04:09:39,000 --> 04:09:40,700
and so when I started gym launch

7804
04:09:40,766 --> 04:09:41,566
um

7805
04:09:41,600 --> 04:09:44,200
somebody uh that I knew advised me to look professional

7806
04:09:44,200 --> 04:09:44,733
he said listen

7807
04:09:44,733 --> 04:09:46,666
no one's gonna listen to you for business stuff

7808
04:09:46,666 --> 04:09:48,666
if you look like just a gym rat

7809
04:09:48,800 --> 04:09:50,266
and so I said okay

7810
04:09:50,266 --> 04:09:52,133
I'll listen to you and so he said

7811
04:09:52,133 --> 04:09:53,900
don't worry I've got a guy at a suit shop

7812
04:09:54,100 --> 04:09:56,700
um that I know and he'll hook you up

7813
04:09:56,766 --> 04:09:58,266
and he told the owner I was coming

7814
04:09:58,433 --> 04:10:01,133
so I mentally budgeted 500 bucks for a suit

7815
04:10:01,133 --> 04:10:02,700
so I was like this is a lot of money

7816
04:10:02,700 --> 04:10:04,933
so you know I'm I'm gonna I'm gonna ball out for this

7817
04:10:04,933 --> 04:10:05,966
so I entered the shop

7818
04:10:05,966 --> 04:10:07,266
made some small talk and he's like

7819
04:10:07,266 --> 04:10:07,800
so what do you want I was like

7820
04:10:07,800 --> 04:10:09,266
I want a boss suit he was like

7821
04:10:09,266 --> 04:10:10,966
okay mind you I'm like 26 whatever

7822
04:10:11,100 --> 04:10:13,266
and so I tried you know so he gives me the suit

7823
04:10:13,266 --> 04:10:14,933
I tried it on I felt cool

7824
04:10:14,933 --> 04:10:15,766
he's like how you feel I was like

7825
04:10:15,766 --> 04:10:16,766
I feel like I feel like a boss

7826
04:10:16,766 --> 04:10:18,166
and he's probably laughing at himself

7827
04:10:18,433 --> 04:10:19,966
so anyways I'm looking at myself in the mirror

7828
04:10:19,966 --> 04:10:21,000
and so then I like

7829
04:10:21,000 --> 04:10:23,266
kind of look down at the tag that's on the arm

7830
04:10:23,333 --> 04:10:26,000
and when I pull it over it says $16,000

7831
04:10:26,000 --> 04:10:27,566
and I still can remember

7832
04:10:27,666 --> 04:10:29,600
the blood just draining from my face

7833
04:10:29,600 --> 04:10:31,800
being like 16 grand

7834
04:10:31,800 --> 04:10:35,566
I was like that's a car hahaha and I was like

7835
04:10:35,566 --> 04:10:36,666
oh god like what did I get

7836
04:10:36,666 --> 04:10:38,300
cause my friend had referred me so I was like

7837
04:10:38,300 --> 04:10:40,500
I don't wanna look like a fool here and they you know

7838
04:10:40,500 --> 04:10:41,333
they had prepped the stuff

7839
04:10:41,333 --> 04:10:44,000
so the sales guy who is the owner

7840
04:10:44,000 --> 04:10:47,166
he was also a third generation tailor

7841
04:10:47,300 --> 04:10:48,866
obviously not his first Rodeo

7842
04:10:49,066 --> 04:10:50,900
uh I looked at I was like hey

7843
04:10:50,900 --> 04:10:51,800
uh he's like

7844
04:10:52,300 --> 04:10:54,100
he could see that I was a little

7845
04:10:54,133 --> 04:10:55,666
distraught from the price

7846
04:10:55,866 --> 04:10:56,866
and he's like hey

7847
04:10:56,866 --> 04:10:58,200
do you care much about the uh

7848
04:10:58,200 --> 04:11:00,800
the the the brand of the suit

7849
04:11:00,800 --> 04:11:02,100
and I was like oh no I don't care

7850
04:11:02,100 --> 04:11:03,666
I just wanted to look cool and he was like

7851
04:11:03,666 --> 04:11:05,966
oh don't worry so he had already

7852
04:11:05,966 --> 04:11:08,866
prepared and this is key other suits next to me

7853
04:11:08,933 --> 04:11:10,866
and so he took this one off and he says hey

7854
04:11:10,866 --> 04:11:13,200
try this on for size and just like immediately

7855
04:11:13,366 --> 04:11:15,166
so at this one he's like how does this one look

7856
04:11:15,166 --> 04:11:16,200
and I'm like great

7857
04:11:16,533 --> 04:11:17,500
like I didn't even want to I was like

7858
04:11:17,500 --> 04:11:18,266
I didn't even want to like

7859
04:11:18,266 --> 04:11:20,666
I think about potentially having this suit

7860
04:11:21,166 --> 04:11:23,333
so I then pull it over and it says two grand

7861
04:11:23,333 --> 04:11:24,566
and I'm like alright

7862
04:11:24,566 --> 04:11:26,333
like it's more than I wanted

7863
04:11:26,333 --> 04:11:27,700
but like I like

7864
04:11:27,700 --> 04:11:30,200
at least this is not a car like I can get out of here

7865
04:11:30,200 --> 04:11:33,366
you know without embarrassing myself and so uh

7866
04:11:33,366 --> 04:11:34,800
he's like do you like it I said sure

7867
04:11:34,800 --> 04:11:37,066
I ended up buying like $500 in like

7868
04:11:37,066 --> 04:11:39,366
shirts and socks that went with the suit

7869
04:11:39,500 --> 04:11:41,566
um and spent I think 25 bucks or three grand

7870
04:11:41,566 --> 04:11:42,766
something like that uh

7871
04:11:42,766 --> 04:11:43,866
on the way out the door

7872
04:11:44,466 --> 04:11:46,766
as I went through the process later

7873
04:11:46,766 --> 04:11:50,266
I thought to myself I came in with a 500 dollar budget

7874
04:11:50,266 --> 04:11:53,800
and I ended up spending five or six times my budget

7875
04:11:53,800 --> 04:11:55,466
and I was like how did that happen

7876
04:11:55,600 --> 04:11:57,066
and I realized that

7877
04:11:57,066 --> 04:12:00,000
the first thing I saw was 16,000 dollars

7878
04:12:00,000 --> 04:12:03,600
and it just made everything seem like nothing

7879
04:12:04,333 --> 04:12:05,333
and so uh

7880
04:12:05,333 --> 04:12:07,200
Roy Southerland actually tells a story about this

7881
04:12:07,200 --> 04:12:08,366
with Rolls Royce

7882
04:12:08,500 --> 04:12:11,700
so Rolls Royce stopped showing their cars at car shows

7883
04:12:11,866 --> 04:12:13,600
because if you have all these different cars

7884
04:12:13,600 --> 04:12:15,066
and then you see a 400,000 dollar car

7885
04:12:15,066 --> 04:12:16,666
it seems egregious and so

7886
04:12:16,666 --> 04:12:18,333
what they started doing was showing their

7887
04:12:18,333 --> 04:12:20,100
Rolls Royces at uh

7888
04:12:20,100 --> 04:12:21,666
plane and yacht shows

7889
04:12:22,333 --> 04:12:22,600
so

7890
04:12:22,600 --> 04:12:26,100
if you just decided not to buy a 50 million dollar jet

7891
04:12:26,566 --> 04:12:28,566
a 400,000 dollar car

7892
04:12:28,566 --> 04:12:30,833
feels like candy on the way out the door

7893
04:12:31,266 --> 04:12:32,800
and so everything is relative

7894
04:12:32,800 --> 04:12:35,433
in terms of what the price is being positioned against

7895
04:12:35,500 --> 04:12:37,566
and so I was like man

7896
04:12:37,566 --> 04:12:38,666
that was really powerful

7897
04:12:38,666 --> 04:12:40,400
and it changed how I saw sales

7898
04:12:41,600 --> 04:12:43,500
and so that is what happens

7899
04:12:43,500 --> 04:12:45,666
I spent five times more than my original budget

7900
04:12:45,666 --> 04:12:47,700
and ended up spending 300 dollars on accessories

7901
04:12:47,700 --> 04:12:49,200
and shirts which I never normally would have spent

7902
04:12:49,200 --> 04:12:50,666
but it felt like nothing compared to the

7903
04:12:50,666 --> 04:12:52,133
the new 22 dollar shooter

7904
04:12:52,133 --> 04:12:53,066
whatever that I bought

7905
04:12:53,566 --> 04:12:56,100
so that is how I Learned the anchor upsell

7906
04:12:56,166 --> 04:12:57,633
now here's how it works

7907
04:12:57,733 --> 04:13:01,000
so anchor upsells involve offering premium items first

7908
04:13:01,100 --> 04:13:05,333
key first if the customer is shocked by the price

7909
04:13:05,333 --> 04:13:07,200
you offer a cheaper alternative

7910
04:13:07,533 --> 04:13:09,900
by changing secondary features

7911
04:13:09,900 --> 04:13:11,700
and this is what's key about this

7912
04:13:11,766 --> 04:13:14,100
so presenting a premium version first

7913
04:13:14,100 --> 04:13:15,666
at five to 10 times the price

7914
04:13:15,666 --> 04:13:17,666
makes the other offer our main offer

7915
04:13:17,666 --> 04:13:19,333
the one that we sell to most people

7916
04:13:19,333 --> 04:13:21,133
look like a better deal and so

7917
04:13:21,133 --> 04:13:21,800
this strategy

7918
04:13:21,800 --> 04:13:24,300
leads to more people buying the main offer

7919
04:13:24,566 --> 04:13:25,700
and so it works best

7920
04:13:25,700 --> 04:13:26,566
when the lower priced

7921
04:13:26,566 --> 04:13:29,100
offer has the same core functions as the premium one

7922
04:13:29,100 --> 04:13:31,000
it has the same primary features

7923
04:13:31,000 --> 04:13:33,733
so the second 22 dollar suit still looked good

7924
04:13:33,733 --> 04:13:35,200
it still felt good it still had a good

7925
04:13:35,200 --> 04:13:36,166
you know trim or whatever

7926
04:13:36,166 --> 04:13:37,500
it looked expensive

7927
04:13:37,500 --> 04:13:39,800
but it just wasn't Armani or whatever else

7928
04:13:39,800 --> 04:13:41,400
whatever other brand he had

7929
04:13:41,400 --> 04:13:42,400
and so for me

7930
04:13:42,400 --> 04:13:44,300
the secondary feature of the brand mattered

7931
04:13:44,300 --> 04:13:45,000
very little cause I was like

7932
04:13:45,000 --> 04:13:46,733
no one's gonna ask me for the brand of suit I'm wearing

7933
04:13:46,733 --> 04:13:47,366
they just wanna it just

7934
04:13:47,366 --> 04:13:49,066
I need to look cool right

7935
04:13:49,066 --> 04:13:50,800
and so the thing is is that every offer

7936
04:13:50,800 --> 04:13:51,466
every product

7937
04:13:51,466 --> 04:13:53,633
has primary features and secondary features

7938
04:13:53,800 --> 04:13:56,000
you want the secondary features

7939
04:13:56,000 --> 04:13:56,733
to be different

7940
04:13:56,733 --> 04:13:58,800
between your really expensive one and your minor one

7941
04:13:58,800 --> 04:14:00,533
but if it's just a little bit different

7942
04:14:00,533 --> 04:14:03,000
and it's 1/8 the price people are like

7943
04:14:03,000 --> 04:14:04,400
oh this is a steal

7944
04:14:04,400 --> 04:14:06,400
now because of what we showed them first

7945
04:14:06,400 --> 04:14:07,500
in the suit example

7946
04:14:07,500 --> 04:14:09,166
22 hundred dollar suits seem like a better deal

7947
04:14:09,166 --> 04:14:10,533
compared to the 16 thousand dollar one

7948
04:14:10,533 --> 04:14:12,466
two additional benefits of anchor upsells that happen

7949
04:14:12,466 --> 04:14:13,733
as a result number one

7950
04:14:13,733 --> 04:14:14,400
is that customers

7951
04:14:14,400 --> 04:14:16,200
tend to spend more than they initially planned

7952
04:14:16,200 --> 04:14:19,000
I spent five times what I was willing to spend two

7953
04:14:19,000 --> 04:14:22,133
some customers will still opt for the expensive option

7954
04:14:22,133 --> 04:14:24,066
he probably has done that with a lot of guys

7955
04:14:24,066 --> 04:14:25,700
and maybe one out of five guys

7956
04:14:25,700 --> 04:14:27,300
buys a 16 thousand dollar suit

7957
04:14:27,300 --> 04:14:28,200
and guess what happens

7958
04:14:28,200 --> 04:14:29,533
when you take a 16 thousand dollar suit

7959
04:14:29,533 --> 04:14:30,533
and divide it by five

7960
04:14:30,533 --> 04:14:33,333
that adds 3,000 dollars to every average purchase

7961
04:14:33,333 --> 04:14:34,800
so my two thousand dollar suit

7962
04:14:34,800 --> 04:14:36,366
actually becomes a five thousand dollar suit

7963
04:14:36,366 --> 04:14:37,966
in terms of the economics of the business

7964
04:14:37,966 --> 04:14:39,100
so even if one out of five

7965
04:14:39,100 --> 04:14:40,066
or one out of ten

7966
04:14:40,300 --> 04:14:42,833
people buy something 10 times as expensive

7967
04:14:42,933 --> 04:14:44,333
if you have one out of 10

7968
04:14:44,333 --> 04:14:45,800
buy something 10 times as expensive

7969
04:14:45,800 --> 04:14:47,400
you double your business

7970
04:14:48,900 --> 04:14:51,133
not to mention the increased uptake rates

7971
04:14:51,133 --> 04:14:53,366
and average spend of all the other customers

7972
04:14:53,366 --> 04:14:54,933
so like I said the menu up

7973
04:14:54,933 --> 04:14:56,166
so we talked about earlier

7974
04:14:56,166 --> 04:14:57,900
very elegant very savage

7975
04:14:57,900 --> 04:15:00,066
really good for high volume transaction businesses

7976
04:15:00,266 --> 04:15:02,566
this one a fucking ramrod

7977
04:15:02,566 --> 04:15:04,333
for businesses that spend

7978
04:15:04,333 --> 04:15:06,933
that have fewer customers that spend lots of money

7979
04:15:06,933 --> 04:15:07,500
basically

7980
04:15:07,500 --> 04:15:09,533
this can still make you more money than the menu upsell

7981
04:15:09,533 --> 04:15:12,666
can even though it's just very simple to understand

7982
04:15:12,933 --> 04:15:15,266
so here are the steps to using an anchor up sale

7983
04:15:15,266 --> 04:15:17,933
you present the anchor the really expensive thing

7984
04:15:17,933 --> 04:15:21,133
step 1 step 2 get the gasp alright

7985
04:15:21,133 --> 04:15:23,066
expect customers to freak out about the cost

7986
04:15:23,066 --> 04:15:24,700
that's expected if you didn't do it

7987
04:15:24,700 --> 04:15:26,000
you didn't anchor high enough

7988
04:15:26,066 --> 04:15:28,466
that's why I say 10 times the price

7989
04:15:28,466 --> 04:15:29,400
so if you're like I don't know

7990
04:15:29,400 --> 04:15:31,400
is this an anchor like I added 20%

7991
04:15:31,400 --> 04:15:32,233
it's not an anchor

7992
04:15:32,300 --> 04:15:34,400
it has to be an order of magnitude larger

7993
04:15:34,400 --> 04:15:35,600
it has to be so much larger

7994
04:15:35,600 --> 04:15:37,000
that it gets you to recategorize

7995
04:15:37,000 --> 04:15:39,366
your original purchase it like think about it

7996
04:15:39,466 --> 04:15:41,200
buying planes and buying yachts

7997
04:15:41,200 --> 04:15:43,766
compared to buying a car totally different magnitude

7998
04:15:43,766 --> 04:15:44,666
it can't be you know

7999
04:15:44,666 --> 04:15:47,500
it can't be within 100% it's got to be 5 x 10 x more

8000
04:15:47,566 --> 04:15:49,766
once you get the gasp you come to the rescue

8001
04:15:49,766 --> 04:15:52,066
you ask if they care about what makes it premium

8002
04:15:52,200 --> 04:15:55,300
those secondary features do you care about the

8003
04:15:55,300 --> 04:15:57,266
the material or the internal lining

8004
04:15:57,266 --> 04:15:59,733
stuff that somebody that most people won't care about

8005
04:15:59,733 --> 04:16:01,300
then you present your main offer

8006
04:16:01,300 --> 04:16:03,166
and you expect the customer to feel relieved

8007
04:16:03,166 --> 04:16:04,666
and see the better deal

8008
04:16:04,666 --> 04:16:06,466
then you just ask how they want to pay

8009
04:16:06,466 --> 04:16:08,900
which card do you prefer so here's some pro tips

8010
04:16:08,900 --> 04:16:10,500
number one is the only thing worse

8011
04:16:10,500 --> 04:16:11,666
than making a thousand dollar offer

8012
04:16:11,666 --> 04:16:13,066
to a person with a hundred dollar budget

8013
04:16:13,100 --> 04:16:14,733
is making a one hundred dollar offer

8014
04:16:14,733 --> 04:16:16,366
to someone with a thousand dollar budget

8015
04:16:16,366 --> 04:16:17,400
in the first situation

8016
04:16:17,400 --> 04:16:19,366
you lose a hundred dollars in the second situation

8017
04:16:19,366 --> 04:16:20,600
you lose 900

8018
04:16:20,666 --> 04:16:22,766
I've lost tons of customers and mountains of cash

8019
04:16:22,766 --> 04:16:25,700
because customers wanted more than I had to offer boo

8020
04:16:25,700 --> 04:16:27,566
so now I always have premium up sales

8021
04:16:27,566 --> 04:16:29,100
rank ready anchors

8022
04:16:29,266 --> 04:16:31,400
only a handful of customers buy them

8023
04:16:31,400 --> 04:16:35,066
but that handful of customers bring in big profits

8024
04:16:35,133 --> 04:16:36,900
so always have premium offers

8025
04:16:36,900 --> 04:16:38,300
even if most people don't buy them

8026
04:16:38,300 --> 04:16:40,133
you're not failing if one out of 10 people buy

8027
04:16:40,133 --> 04:16:41,200
a 10 times more expensive offer

8028
04:16:41,200 --> 04:16:43,133
you still double your business remember

8029
04:16:43,133 --> 04:16:44,400
you're not losing customers

8030
04:16:44,400 --> 04:16:45,966
by offering premium stuff first

8031
04:16:45,966 --> 04:16:48,400
but you will lose money if you don't alright

8032
04:16:48,400 --> 04:16:49,933
let's do some examples first one

8033
04:16:49,933 --> 04:16:51,600
we'll do a local long care service

8034
04:16:51,600 --> 04:16:54,866
so the premium anchor is get my cell phone number

8035
04:16:54,933 --> 04:16:57,200
Fancy Mulch Natural Pest Control

8036
04:16:57,200 --> 04:16:59,900
bi weekly yard maintenance for $1,000 a week

8037
04:17:00,100 --> 04:17:01,700
it's crazy big shock

8038
04:17:01,700 --> 04:17:04,400
no worries get my my foreman's number

8039
04:17:04,400 --> 04:17:06,466
my my team my crew chief's number

8040
04:17:06,566 --> 04:17:08,066
generic mulch normal pest control

8041
04:17:08,066 --> 04:17:10,800
biweekly yard maintenance for $200 a week yeah yeah

8042
04:17:10,800 --> 04:17:12,100
I'll do that one I'll do that one

8043
04:17:12,466 --> 04:17:14,366
cause it's almost the same thing at the end of the day

8044
04:17:14,366 --> 04:17:15,466
it's like and they'll probably be like

8045
04:17:15,466 --> 04:17:17,333
is this is my you know yard gonna look any different

8046
04:17:17,333 --> 04:17:18,066
it's like well not really

8047
04:17:18,066 --> 04:17:20,000
it just really depends on how much you care about the

8048
04:17:20,000 --> 04:17:21,833
the the quality of the soil

8049
04:17:21,933 --> 04:17:22,300
now

8050
04:17:22,300 --> 04:17:24,100
for the guy who cares about the quality of the soil

8051
04:17:24,100 --> 04:17:27,000
he's gonna buy this thing but for everybody else

8052
04:17:27,000 --> 04:17:29,833
which 80% of people don't give a rat's poo

8053
04:17:29,866 --> 04:17:32,300
about the quality of this other stuff

8054
04:17:32,300 --> 04:17:32,933
they're like no

8055
04:17:32,933 --> 04:17:35,366
I'll take the 200 but they don't know that

8056
04:17:35,366 --> 04:17:36,700
you couldn't price this at 200

8057
04:17:36,700 --> 04:17:39,066
because last week when you offered 200 straight up

8058
04:17:39,066 --> 04:17:40,466
people were nickel and diamond you down to one

8059
04:17:40,466 --> 04:17:43,566
50 or 99 a week so physical product a painting

8060
04:17:43,566 --> 04:17:45,666
the anchor would be the super productive packaging

8061
04:17:45,666 --> 04:17:48,400
a 20 year insurance and gift wrap for $1,000

8062
04:17:48,566 --> 04:17:50,100
the main offer is normal packaging

8063
04:17:50,100 --> 04:17:51,366
and one year insurance and a sticker

8064
04:17:51,366 --> 04:17:52,600
for 200 bucks you're like

8065
04:17:52,600 --> 04:17:54,533
ah I'll take the normal one

8066
04:17:54,533 --> 04:17:55,100
the thing is

8067
04:17:55,100 --> 04:17:57,366
is that you want the customer to feel reasonable

8068
04:17:57,366 --> 04:17:58,166
by making the purchase

8069
04:17:58,166 --> 04:17:59,100
like they're getting a better deal

8070
04:17:59,100 --> 04:18:00,733
like they're pulling one over on you

8071
04:18:00,733 --> 04:18:02,966
they're like this guy thinks I want thousand

8072
04:18:02,966 --> 04:18:04,800
like he doesn't even know that

8073
04:18:04,800 --> 04:18:06,400
this is basically the same thing

8074
04:18:06,400 --> 04:18:08,166
and it's like one fifth the price

8075
04:18:08,566 --> 04:18:11,266
but you designed the game they're just playing it

8076
04:18:11,266 --> 04:18:12,800
third is a digital product

8077
04:18:12,800 --> 04:18:13,666
so let's say it's a newsletter

8078
04:18:13,666 --> 04:18:15,466
so the premium anchor would be like hey

8079
04:18:15,466 --> 04:18:17,533
all previous issues and new issues

8080
04:18:17,533 --> 04:18:20,300
and 24 hour early access to my newsletters for 1

8081
04:18:20,300 --> 04:18:22,600
99 a month or new issues only

8082
04:18:22,600 --> 04:18:25,066
and you'll just get it on time for $19 a month

8083
04:18:25,066 --> 04:18:26,733
you're like shit oh yeah

8084
04:18:26,733 --> 04:18:28,600
I'll do the I'll do the I mean I you know

8085
04:18:28,600 --> 04:18:30,466
it'd be cool to get the 24 hours early

8086
04:18:30,466 --> 04:18:33,066
but like I'll just take the new ones like that's fine

8087
04:18:33,066 --> 04:18:35,133
and it's one tenth the price

8088
04:18:35,133 --> 04:18:36,766
and somehow this feels like an absolute steal

8089
04:18:36,766 --> 04:18:38,566
but you might have been competing against people at $7

8090
04:18:38,566 --> 04:18:40,000
a month before that alright

8091
04:18:40,000 --> 04:18:43,100
here's some important points about this this is crucial

8092
04:18:43,300 --> 04:18:45,333
you will fail at doing an anchor up sale

8093
04:18:45,333 --> 04:18:46,866
if you do not treat it seriously

8094
04:18:47,133 --> 04:18:49,333
so if you treat the anchor like a fake

8095
04:18:49,333 --> 04:18:50,333
so will the customer

8096
04:18:50,333 --> 04:18:52,500
if the guy had put it on my shoulders and been like

8097
04:18:52,500 --> 04:18:54,966
it's probably out of your range or said well

8098
04:18:54,966 --> 04:18:55,866
that would be a little insulting

8099
04:18:55,866 --> 04:18:56,700
but if he's like hey

8100
04:18:56,700 --> 04:18:59,200
if this isn't you know in your range like no big deal

8101
04:18:59,266 --> 04:19:00,100
then I wouldn't have been anchored

8102
04:19:00,100 --> 04:19:00,733
cause I wouldn't have taken

8103
04:19:00,733 --> 04:19:02,766
I wouldn't have considered the purchase

8104
04:19:03,100 --> 04:19:05,900
you have to have them fully consider the purchase

8105
04:19:06,066 --> 04:19:07,966
really try and think oh god

8106
04:19:08,000 --> 04:19:09,133
how would I come up with this

8107
04:19:09,133 --> 04:19:10,700
and what here's what happens

8108
04:19:10,700 --> 04:19:12,333
is that your brain or their brain

8109
04:19:12,333 --> 04:19:13,266
starts justifying

8110
04:19:13,266 --> 04:19:15,666
why it might be worth that amount of money

8111
04:19:16,400 --> 04:19:19,033
and then when you offer something one tenth the price

8112
04:19:19,133 --> 04:19:21,333
they've already done all the heavy lifting of

8113
04:19:21,333 --> 04:19:25,000
of anchoring of comparing why it might be worth that

8114
04:19:25,000 --> 04:19:26,400
and then compared to this price

8115
04:19:26,400 --> 04:19:28,166
it's totally worth it and that's what we change

8116
04:19:28,166 --> 04:19:29,466
as little as we can

8117
04:19:29,466 --> 04:19:31,100
from the thing that they thought about

8118
04:19:31,100 --> 04:19:32,666
to the thing that they ultimately buy

8119
04:19:32,800 --> 04:19:34,500
next point make a premium offer

8120
04:19:34,500 --> 04:19:35,666
that you actually want people to buy

8121
04:19:35,666 --> 04:19:36,966
if you have this premium offer

8122
04:19:36,966 --> 04:19:38,400
that has all these bells and whistles

8123
04:19:38,566 --> 04:19:39,733
be ready to service it

8124
04:19:39,733 --> 04:19:41,300
because let me tell you the real secret

8125
04:19:41,300 --> 04:19:42,966
what ends up happening when people do this

8126
04:19:43,166 --> 04:19:45,300
they 10 x their price and they make this really bang

8127
04:19:45,300 --> 04:19:46,300
whiz bang thing

8128
04:19:46,766 --> 04:19:49,300
and then more than one out of people 10 people buy it

8129
04:19:49,300 --> 04:19:51,733
and so this is just also a great way to give yourself

8130
04:19:51,733 --> 04:19:53,266
permission to anchor

8131
04:19:53,266 --> 04:19:54,666
something 10 times as expensive

8132
04:19:54,666 --> 04:19:56,300
a proper anchor gets the gasp

8133
04:19:56,300 --> 04:19:58,400
expect them design for them

8134
04:19:58,400 --> 04:19:59,366
you want the gasp

8135
04:19:59,366 --> 04:20:01,666
the gasp means they considered it if they do not gasp

8136
04:20:01,666 --> 04:20:02,900
it either means you didn't go high enough

8137
04:20:02,900 --> 04:20:04,100
or you didn't sell hard enough

8138
04:20:04,100 --> 04:20:04,866
as in you didn't

8139
04:20:04,866 --> 04:20:08,200
truthfully commit to actually selling that thing

8140
04:20:08,200 --> 04:20:10,100
like you have to in earnest present it

8141
04:20:10,100 --> 04:20:11,100
or this will not work

8142
04:20:11,100 --> 04:20:12,600
it'll just be a waste of your time and theirs

8143
04:20:12,600 --> 04:20:14,600
and this is especially for business owners

8144
04:20:14,666 --> 04:20:16,700
if you teach your team this process

8145
04:20:16,733 --> 04:20:19,233
many of them will just skirt through the anchor

8146
04:20:19,566 --> 04:20:21,766
because they start selling from their wallet

8147
04:20:21,766 --> 04:20:22,200
they're gonna be like

8148
04:20:22,200 --> 04:20:23,366
I would never pay for this it's like

8149
04:20:23,366 --> 04:20:24,100
of course you wouldn't

8150
04:20:24,100 --> 04:20:25,466
you already know how to fix cars

8151
04:20:25,533 --> 04:20:26,566
this guy doesn't

8152
04:20:27,666 --> 04:20:28,133
and so

8153
04:20:28,133 --> 04:20:32,166
we often can never see the value of the stuff we sell

8154
04:20:32,166 --> 04:20:34,933
because for us it's easy duh

8155
04:20:34,933 --> 04:20:36,466
that's why we have a business around it

8156
04:20:36,466 --> 04:20:38,100
you want to sell stuff that's easy for you

8157
04:20:38,100 --> 04:20:39,266
and hard for other people

8158
04:20:39,266 --> 04:20:40,466
that's how you make money

8159
04:20:40,666 --> 04:20:41,800
once you get the gas

8160
04:20:41,800 --> 04:20:44,700
you come to the rescue and if they don't balk

8161
04:20:44,700 --> 04:20:46,633
like if they if they don't gasp

8162
04:20:46,866 --> 04:20:49,000
close the whale if they're like

8163
04:20:49,000 --> 04:20:51,866
you know this is a nice suit then you're like great

8164
04:20:51,866 --> 04:20:52,700
do you have a card on file

8165
04:20:52,700 --> 04:20:54,933
do you wanna you put pair this with a handkerchief

8166
04:20:54,933 --> 04:20:57,000
you just move right on in the sale and you're like

8167
04:20:57,000 --> 04:20:58,266
oh God I got a whale on the line

8168
04:20:58,266 --> 04:21:00,100
I'm just gonna keep going to get more people to

8169
04:21:00,100 --> 04:21:01,666
buy your main offer make it a better deal

8170
04:21:01,666 --> 04:21:03,333
so this is the primary versus secondary features

8171
04:21:03,333 --> 04:21:05,800
you want it to be as little different from the main one

8172
04:21:05,800 --> 04:21:08,100
from the anchor as uh

8173
04:21:08,100 --> 04:21:10,533
as possible so that they justify the price

8174
04:21:10,533 --> 04:21:12,266
already at this 10 times higher price

8175
04:21:12,266 --> 04:21:13,200
and when they hear this one

8176
04:21:13,200 --> 04:21:13,766
they're like oh

8177
04:21:13,766 --> 04:21:16,600
this is a steal because if you make your good one

8178
04:21:16,600 --> 04:21:19,800
too different from the core offer

8179
04:21:19,800 --> 04:21:20,766
that you're ultimately trying to sell

8180
04:21:20,766 --> 04:21:21,966
80% of people

8181
04:21:22,466 --> 04:21:25,133
then they actually have to reconsider the offer again

8182
04:21:25,133 --> 04:21:27,700
they have to recalibrate price to value

8183
04:21:27,700 --> 04:21:30,300
you want them to basically be able to take the same

8184
04:21:30,300 --> 04:21:31,366
price to value measurement

8185
04:21:31,366 --> 04:21:32,266
they did here

8186
04:21:32,266 --> 04:21:35,733
and then here an 80% discount or a 90% discount

8187
04:21:35,733 --> 04:21:37,100
because the things that you changed

8188
04:21:37,100 --> 04:21:38,600
were not the things they cared about

8189
04:21:38,600 --> 04:21:39,500
but if you all of a sudden

8190
04:21:39,500 --> 04:21:40,900
have all these things they do care about

8191
04:21:40,900 --> 04:21:42,666
then you change primary features

8192
04:21:42,733 --> 04:21:44,100
not secondary features

8193
04:21:44,100 --> 04:21:46,733
so if you present a more expensive offer first

8194
04:21:46,733 --> 04:21:47,900
before a less expensive offer

8195
04:21:47,900 --> 04:21:49,366
more people will buy the less expensive offer

8196
04:21:49,366 --> 04:21:51,166
than they would have on its own

8197
04:21:51,600 --> 04:21:52,666
when you present the anchor

8198
04:21:52,666 --> 04:21:53,966
get the gasp come to the rescue

8199
04:21:53,966 --> 04:21:54,766
present the core offer

8200
04:21:54,766 --> 04:21:56,800
ask for payment for the most effective anchor

8201
04:21:56,800 --> 04:21:59,233
make your premium offer five to 10 times more expensive

8202
04:21:59,300 --> 04:22:01,933
anchored customers spend a bit more than they plan to

8203
04:22:01,933 --> 04:22:03,900
and don't treat an anchor like a fake

8204
04:22:03,933 --> 04:22:05,100
or the customer will too

8205
04:22:05,100 --> 04:22:07,300
and you will lose trust and waste their time

8206
04:22:07,366 --> 04:22:09,166
important some customers will buy a premium offer

8207
04:22:09,166 --> 04:22:11,066
that is where you make way more money on this

8208
04:22:11,066 --> 04:22:12,366
because one more people buy the main thing

8209
04:22:12,366 --> 04:22:14,466
and some people will buy the very expensive thing

8210
04:22:14,466 --> 04:22:16,866
the expensive premium offer adds outside profits

8211
04:22:16,866 --> 04:22:17,466
with fewer sales

8212
04:22:17,466 --> 04:22:19,100
so just because you don't sell the most of it

8213
04:22:19,100 --> 04:22:20,766
doesn't mean you don't make the most profit from it

8214
04:22:20,766 --> 04:22:22,266
the main offer and premium offer

8215
04:22:22,266 --> 04:22:24,000
should have the same primary features

8216
04:22:24,100 --> 04:22:25,766
the premium offer has different secondary

8217
04:22:25,766 --> 04:22:28,400
aka premium features after anchoring offering

8218
04:22:28,400 --> 04:22:31,266
the primary features for 1/3 or 1/5 or 1/10

8219
04:22:31,266 --> 04:22:33,166
the price makes the main offer a great deal

8220
04:22:33,166 --> 04:22:35,966
it gives them basically the same thing for way less

8221
04:22:36,666 --> 04:22:38,033
that is the anchor upsell

8222
04:22:40,266 --> 04:22:41,900
alright so we just crushed the classic upsell

8223
04:22:41,900 --> 04:22:43,500
the menu upsell the anchor upsell

8224
04:22:43,500 --> 04:22:46,000
now let's talk about the rollover upsell

8225
04:22:46,000 --> 04:22:46,600
rollover upsell

8226
04:22:46,600 --> 04:22:49,333
of these four upsells is probably my most used upsell

8227
04:22:49,333 --> 04:22:50,533
not necessarily my favorite

8228
04:22:50,533 --> 04:22:51,933
but my most commonly used

8229
04:22:51,933 --> 04:22:54,366
so let's break down how this came to be

8230
04:22:54,533 --> 04:22:56,933
so I Learned this from when I was doing the

8231
04:22:56,933 --> 04:22:58,600
win your money back as the attraction offer

8232
04:22:58,600 --> 04:22:59,400
so everyone kept

8233
04:22:59,400 --> 04:23:01,100
crediting their money towards the membership

8234
04:23:01,100 --> 04:23:03,366
but I would put it all up front right

8235
04:23:03,366 --> 04:23:06,333
the membership was for me $150 a month

8236
04:23:06,333 --> 04:23:08,666
so 600 bucks was four months of free service

8237
04:23:08,833 --> 04:23:09,866
so you know

8238
04:23:09,866 --> 04:23:10,733
they did six weeks

8239
04:23:10,733 --> 04:23:12,900
and then they would essentially get another four

8240
04:23:12,900 --> 04:23:14,466
months for free

8241
04:23:14,466 --> 04:23:17,200
and it would almost take me a half year to get my like

8242
04:23:17,200 --> 04:23:18,666
first payment from people coming in the door

8243
04:23:18,666 --> 04:23:20,366
which was which sucked right

8244
04:23:20,366 --> 04:23:22,000
so the thing is is for them

8245
04:23:22,100 --> 04:23:24,200
they didn't feel the payment so they stopped coming

8246
04:23:24,200 --> 04:23:24,500
and so

8247
04:23:24,500 --> 04:23:27,100
I needed a way to upsell people into something paid

8248
04:23:27,533 --> 04:23:29,500
and so I drove to a friend of mine's

8249
04:23:29,500 --> 04:23:31,533
actually here in Vegas now uh

8250
04:23:31,533 --> 04:23:33,233
to learn more about how he ran his gym

8251
04:23:33,300 --> 04:23:35,466
and and the thing is I studied everything he was doing

8252
04:23:35,466 --> 04:23:37,266
cause he was just doing way better than I was

8253
04:23:37,366 --> 04:23:39,800
and uh he said in this offhanded comment

8254
04:23:39,800 --> 04:23:41,333
that he was getting 70% plus

8255
04:23:41,333 --> 04:23:42,933
people stay on afterwards and pay

8256
04:23:42,933 --> 04:23:45,333
and I was like how are you doing that

8257
04:23:45,333 --> 04:23:46,000
he's like oh yeah he's like

8258
04:23:46,000 --> 04:23:47,866
I just take their winnings and credit towards the year

8259
04:23:47,866 --> 04:23:49,500
and he said it just like that

8260
04:23:49,500 --> 04:23:51,900
and I was like that's it

8261
04:23:51,900 --> 04:23:55,133
all you do is you take whatever they just paid for

8262
04:23:55,133 --> 04:23:58,066
and you roll it and so that's the up sale

8263
04:23:58,066 --> 04:23:59,300
it's whatever you paid for

8264
04:23:59,300 --> 04:24:01,500
I'll just credit it towards the next thing

8265
04:24:01,533 --> 04:24:03,266
so let's get in the description

8266
04:24:03,266 --> 04:24:05,400
here's how it works so roll over up sales

8267
04:24:05,400 --> 04:24:08,200
credit some or all of a customer's previous purchase

8268
04:24:08,200 --> 04:24:11,266
towards your next offer and this in my experience

8269
04:24:11,266 --> 04:24:13,500
gets way more people to take it

8270
04:24:13,500 --> 04:24:15,466
so once I know how much credit to give

8271
04:24:15,466 --> 04:24:17,400
I figure out three things 1

8272
04:24:17,400 --> 04:24:19,700
who to upsell 2 what to upsell and 3

8273
04:24:19,700 --> 04:24:20,900
how to roll over the credit

8274
04:24:21,000 --> 04:24:22,300
so for the who

8275
04:24:22,300 --> 04:24:24,566
I use roll over upsells in four situations

8276
04:24:24,900 --> 04:24:27,800
first is to reengage customers who left a while ago

8277
04:24:27,800 --> 04:24:29,200
I call this a win back campaign

8278
04:24:29,200 --> 04:24:31,700
you reach out to old customers and say

8279
04:24:31,700 --> 04:24:32,866
hey Sandra you haven't been up

8280
04:24:32,866 --> 04:24:34,866
you haven't been back in six months uh

8281
04:24:34,866 --> 04:24:37,100
but I saw that I owed you some money

8282
04:24:37,100 --> 04:24:38,266
and so the subject would be

8283
04:24:38,266 --> 04:24:41,666
I owe you money and people tend to respond to that

8284
04:24:41,666 --> 04:24:42,933
and so you say hey

8285
04:24:42,933 --> 04:24:44,400
I owe you 500 bucks and she's like

8286
04:24:44,400 --> 04:24:46,700
what do you mean you owe me $500

8287
04:24:46,700 --> 04:24:47,466
I was like well

8288
04:24:47,466 --> 04:24:49,700
I promised you this thing and you know

8289
04:24:49,700 --> 04:24:52,800
you haven't come back in a while so I wanna take $500

8290
04:24:52,800 --> 04:24:54,400
now that could be 100% of what they paid

8291
04:24:54,400 --> 04:24:55,966
it could be a third of what they paid so far

8292
04:24:55,966 --> 04:24:57,500
whatever and say and I wanna

8293
04:24:57,500 --> 04:24:59,966
I wanna get you in here and I'll credit towards uh

8294
04:25:00,100 --> 04:25:01,700
this other service thing right

8295
04:25:01,700 --> 04:25:03,533
and so a lot of people will take that offer

8296
04:25:03,533 --> 04:25:05,266
to credit whatever they paid up to this point

8297
04:25:05,266 --> 04:25:06,700
for more help great

8298
04:25:06,700 --> 04:25:08,966
and that's what how you can reengage old pup

8299
04:25:08,966 --> 04:25:10,600
old people who haven't been back in a while

8300
04:25:10,766 --> 04:25:13,766
the second is to rescue upset customers

8301
04:25:13,766 --> 04:25:15,466
as a better alternative to a refund

8302
04:25:15,500 --> 04:25:16,333
so someone says hey

8303
04:25:16,333 --> 04:25:17,400
I hate you and you say hey

8304
04:25:17,400 --> 04:25:19,366
no big deal this $500

8305
04:25:19,366 --> 04:25:21,333
that you paid I'll just credit towards the thing

8306
04:25:21,333 --> 04:25:22,600
I should have sold you originally

8307
04:25:22,600 --> 04:25:24,333
so you got all the stuff that you just got for free

8308
04:25:24,333 --> 04:25:25,200
it's on me

8309
04:25:25,266 --> 04:25:27,000
let's just give you the thing you really need

8310
04:25:27,000 --> 04:25:29,800
so I'd rather do a redo than a refund

8311
04:25:29,800 --> 04:25:31,500
and that's how we use the roll over there

8312
04:25:31,766 --> 04:25:35,333
the third is to rescue other people's upset customers

8313
04:25:35,333 --> 04:25:36,900
this is particularly savage

8314
04:25:37,066 --> 04:25:38,333
so what you do is you go down

8315
04:25:38,333 --> 04:25:40,366
the one star reviews of all your competitors

8316
04:25:40,500 --> 04:25:42,366
and you message those people and you say hey

8317
04:25:42,366 --> 04:25:44,466
how much money did you spend at so and so competitor

8318
04:25:44,466 --> 04:25:45,533
and they're like 12 dollars

8319
04:25:45,533 --> 04:25:46,266
fuck that guy and you're like

8320
04:25:46,266 --> 04:25:48,166
you know what I'll give you the 12 dollars

8321
04:25:48,166 --> 04:25:49,533
of credit towards my stuff

8322
04:25:49,533 --> 04:25:51,666
because I just want you to get this problem solved

8323
04:25:51,666 --> 04:25:53,333
you turn their biggest hater into your biggest

8324
04:25:53,333 --> 04:25:56,900
ambassador savage No. 4

8325
04:25:57,366 --> 04:25:58,866
you up sell your regular customers

8326
04:25:58,866 --> 04:26:00,866
who walk in the door so there's the four

8327
04:26:00,866 --> 04:26:03,200
who's the next one is the what

8328
04:26:03,200 --> 04:26:05,866
so remember you can upsell more of what they just got

8329
04:26:05,866 --> 04:26:08,300
something better or something new and or different

8330
04:26:08,300 --> 04:26:09,366
so to make money

8331
04:26:09,366 --> 04:26:11,633
roll their credit over to something more expensive

8332
04:26:11,700 --> 04:26:13,200
and so the more expensive thing again

8333
04:26:13,200 --> 04:26:15,566
in my opinion should be five times more expensive

8334
04:26:15,566 --> 04:26:17,466
so if I'm gonna roll a 500 dollar thing

8335
04:26:17,466 --> 04:26:19,100
I wanna roll it towards a 2000

8336
04:26:19,166 --> 04:26:23,500
25 dollars plus type offer for the how

8337
04:26:23,533 --> 04:26:26,000
you can apply all or part of the discount upfront

8338
04:26:26,000 --> 04:26:27,300
or you can spread it over time

8339
04:26:27,300 --> 04:26:28,400
and so this is depending on you

8340
04:26:28,400 --> 04:26:29,566
so in the examples I gave before

8341
04:26:29,566 --> 04:26:31,200
I took it and I spread it over time

8342
04:26:31,200 --> 04:26:32,666
you could if you had a smaller amount

8343
04:26:32,666 --> 04:26:34,166
do it upfront it's up to you

8344
04:26:34,166 --> 04:26:35,266
you can also make up a fee

8345
04:26:35,266 --> 04:26:36,666
that you can then wave and use the credit for

8346
04:26:36,666 --> 04:26:38,133
there's lots of things you can do here

8347
04:26:38,133 --> 04:26:39,100
all right but fundamentally

8348
04:26:39,100 --> 04:26:39,766
you can just figure out

8349
04:26:39,766 --> 04:26:41,533
now the all or part of it is like

8350
04:26:41,533 --> 04:26:43,466
let's say somebody was with you for three years

8351
04:26:43,466 --> 04:26:45,166
and they spent five grand with you

8352
04:26:45,166 --> 04:26:47,066
you might not credit five grand towards something else

8353
04:26:47,066 --> 04:26:48,700
if your services you know

8354
04:26:48,700 --> 04:26:50,700
aren't that much maybe it's $2,000 a year

8355
04:26:50,700 --> 04:26:52,200
$5,000 three years of service

8356
04:26:52,200 --> 04:26:54,433
well you'd certainly want to get that customer back

8357
04:26:54,500 --> 04:26:56,266
but if you give them another three years

8358
04:26:56,266 --> 04:26:57,666
it doesn't make sense so you can say hey

8359
04:26:57,666 --> 04:26:58,566
I'm gonna give you the last

8360
04:26:58,566 --> 04:27:00,166
you know the last three things you bought for me

8361
04:27:00,166 --> 04:27:01,866
let me credit those instead right

8362
04:27:01,866 --> 04:27:02,766
you wouldn't say instead you'd say

8363
04:27:02,766 --> 04:27:04,133
I'll credit those for you right

8364
04:27:04,133 --> 04:27:05,366
all of those things you can say listen

8365
04:27:05,366 --> 04:27:07,466
I'm gonna assume that we did something to mess up

8366
04:27:07,466 --> 04:27:08,533
because you didn't come back

8367
04:27:08,533 --> 04:27:08,800
and so

8368
04:27:08,800 --> 04:27:11,000
I'm gonna assume that the last six months of service

8369
04:27:11,000 --> 04:27:12,866
that we did was not up to snuff

8370
04:27:12,866 --> 04:27:15,400
so let me make it up to you so examples

8371
04:27:15,400 --> 04:27:16,166
so chiropractor

8372
04:27:16,166 --> 04:27:18,400
reengage old patients with a win back campaign

8373
04:27:18,400 --> 04:27:19,866
so you say who's the who

8374
04:27:19,866 --> 04:27:21,200
six months since their last purchase

8375
04:27:21,200 --> 04:27:23,400
what new plan how upfront

8376
04:27:23,400 --> 04:27:25,200
so that's our who our what and how

8377
04:27:25,200 --> 04:27:26,366
so reach out to your old patients

8378
04:27:26,366 --> 04:27:27,533
you look at their purchase history

8379
04:27:27,533 --> 04:27:30,100
you offer to apply some or all their past purchase

8380
04:27:30,100 --> 04:27:32,266
towards something more expensive than what they bought

8381
04:27:32,266 --> 04:27:33,566
so I would say hey Mrs

8382
04:27:33,566 --> 04:27:34,900
Banks I wanted to give your money back

8383
04:27:34,900 --> 04:27:36,100
do you have a minute great

8384
04:27:36,100 --> 04:27:37,933
yeah I wanted to see how your back pains going

8385
04:27:37,933 --> 04:27:39,633
oh I'm so sorry to hear that

8386
04:27:39,766 --> 04:27:40,066
uh well

8387
04:27:40,066 --> 04:27:42,166
I've got some good news as a way of saying thank you

8388
04:27:42,166 --> 04:27:43,900
I wanna give you $500 your money back

8389
04:27:43,900 --> 04:27:46,666
as credit towards staying pain free for good

8390
04:27:46,866 --> 04:27:48,400
is that of any interest great

8391
04:27:48,400 --> 04:27:50,166
let's get you in let's say a dentist

8392
04:27:50,166 --> 04:27:52,900
hey save your own upset customer with a rollover upsell

8393
04:27:52,900 --> 04:27:54,166
so who upset customer what

8394
04:27:54,166 --> 04:27:55,266
teeth whitening how

8395
04:27:55,266 --> 04:27:56,600
front load 200 dollar credit

8396
04:27:56,800 --> 04:27:57,600
so we say hey

8397
04:27:57,600 --> 04:27:59,466
the person pays 200 bucks for teeth cleaning

8398
04:27:59,466 --> 04:28:00,866
but doesn't think their teeth got whiter

8399
04:28:00,866 --> 04:28:02,266
we explain they need more to

8400
04:28:02,266 --> 04:28:02,466
you know

8401
04:28:02,466 --> 04:28:04,600
to get more and upsell into a teeth whitening package

8402
04:28:04,600 --> 04:28:06,933
which includes multiple sessions and at home kit

8403
04:28:06,933 --> 04:28:08,133
and multiple deep cleanings

8404
04:28:08,133 --> 04:28:09,366
then you offer to credit the $200

8405
04:28:09,366 --> 04:28:10,333
they just paid for the cleaning

8406
04:28:10,333 --> 04:28:11,300
towards the whitening package

8407
04:28:11,300 --> 04:28:13,100
this just really works with people who are like

8408
04:28:13,100 --> 04:28:13,966
well this isn't what I thought

8409
04:28:13,966 --> 04:28:14,733
it was gonna be and you're like

8410
04:28:14,733 --> 04:28:15,800
oh that's on me

8411
04:28:15,800 --> 04:28:18,266
I thought you wanted this miscommunication

8412
04:28:18,300 --> 04:28:20,200
I'll make it up to you let me take everything you paid

8413
04:28:20,200 --> 04:28:20,866
so you didn't lose anything

8414
04:28:20,866 --> 04:28:22,100
everything that was for free now

8415
04:28:22,100 --> 04:28:23,500
and let's put it towards the thing you ultimately

8416
04:28:23,500 --> 04:28:24,166
wanted cause the thing is

8417
04:28:24,166 --> 04:28:27,166
is they still want the thing they they spent money on

8418
04:28:27,166 --> 04:28:27,566
and so

8419
04:28:27,566 --> 04:28:29,366
if what they really wanted was higher expectations

8420
04:28:29,366 --> 04:28:31,266
then sell them the higher package rescue

8421
04:28:31,266 --> 04:28:34,133
cough steal other people's upset customers so who

8422
04:28:34,133 --> 04:28:35,900
competitor's customers what service agreement

8423
04:28:35,900 --> 04:28:38,300
how roll over cost to break old agreement

8424
04:28:38,333 --> 04:28:40,600
so let's say you find a competitor's upset customers

8425
04:28:40,600 --> 04:28:42,266
and credit their old purchase with them

8426
04:28:42,266 --> 04:28:43,966
towards a new purchase with you

8427
04:28:44,166 --> 04:28:46,500
then you roll over the amount they owe them

8428
04:28:46,500 --> 04:28:48,400
as a credit towards a longer agreement with you

8429
04:28:48,400 --> 04:28:49,200
so let's say they're like ah

8430
04:28:49,200 --> 04:28:49,866
you know I would

8431
04:28:49,866 --> 04:28:50,800
but I've got three months left

8432
04:28:50,800 --> 04:28:52,000
in this service agreement

8433
04:28:52,000 --> 04:28:53,100
you say no worries

8434
04:28:53,366 --> 04:28:55,100
whatever you have the three months

8435
04:28:55,133 --> 04:28:56,866
I'll credit it towards mine

8436
04:28:56,866 --> 04:28:58,600
and I'll just make mine a two year agreement

8437
04:28:59,466 --> 04:29:00,400
so you'd say like hey

8438
04:29:00,400 --> 04:29:02,466
John saw your negative review on uh

8439
04:29:02,533 --> 04:29:04,466
their product and it really upset me

8440
04:29:04,466 --> 04:29:05,366
to make it up to you

8441
04:29:05,366 --> 04:29:07,200
I'll credit whatever payments you have left with them

8442
04:29:07,200 --> 04:29:09,266
to switch to ours this way you don't lose a thing

8443
04:29:09,266 --> 04:29:10,500
and you start getting the benefits now

8444
04:29:10,500 --> 04:29:11,300
fair enough

8445
04:29:11,933 --> 04:29:12,300
cause that way

8446
04:29:12,300 --> 04:29:13,866
you don't have to wait for that thing to expire

8447
04:29:13,866 --> 04:29:15,466
and pay and then wait to get the benefits

8448
04:29:15,466 --> 04:29:16,766
you can start getting the benefits now

8449
04:29:16,766 --> 04:29:17,833
and you don't lose anything

8450
04:29:18,166 --> 04:29:19,800
and I get the customer membership

8451
04:29:19,800 --> 04:29:20,200
so

8452
04:29:20,200 --> 04:29:21,700
this is where you spread the first purchase over time

8453
04:29:21,700 --> 04:29:23,866
so who current customers what 12 month membership

8454
04:29:23,866 --> 04:29:25,600
how spread over the first purchase

8455
04:29:26,266 --> 04:29:27,533
so if somebody comes in

8456
04:29:27,533 --> 04:29:30,733
buys a block of service uh or or of membership time

8457
04:29:30,733 --> 04:29:31,733
as soon as they do

8458
04:29:31,733 --> 04:29:33,500
you can then offer to apply the entire amount

8459
04:29:33,500 --> 04:29:35,233
towards more time like 12 months

8460
04:29:35,400 --> 04:29:37,300
I can do rollover upsells anytime

8461
04:29:37,300 --> 04:29:39,566
I just prefer to do to do them right then

8462
04:29:39,933 --> 04:29:41,233
alright so this is the important points

8463
04:29:41,400 --> 04:29:44,666
uh use rollover uh offers to attract new customers

8464
04:29:44,666 --> 04:29:46,766
for example you rollover some of

8465
04:29:46,766 --> 04:29:47,366
all of the customers

8466
04:29:47,366 --> 04:29:49,100
paid somebody else towards your thing

8467
04:29:49,166 --> 04:29:50,600
and you can find leads by scraping

8468
04:29:50,600 --> 04:29:52,266
contact information from negative product reviews

8469
04:29:52,266 --> 04:29:53,200
wherever available

8470
04:29:53,466 --> 04:29:55,466
you can do rollover upsells before refunding

8471
04:29:55,466 --> 04:29:57,366
this has solved me tons of customers

8472
04:29:57,366 --> 04:29:58,866
save me tons of customers in cash

8473
04:29:58,866 --> 04:30:00,700
if you did a bad job hey it happens

8474
04:30:00,700 --> 04:30:02,300
rollover for a do over

8475
04:30:02,400 --> 04:30:03,966
and if they want something different

8476
04:30:03,966 --> 04:30:06,233
you can rollover the purchase toward that thing instead

8477
04:30:06,700 --> 04:30:09,800
previous customer are still customers upsell them

8478
04:30:09,800 --> 04:30:12,166
these are win backs so reach out to old customers

8479
04:30:12,166 --> 04:30:15,300
6  plus months from their last purchase

8480
04:30:15,300 --> 04:30:16,300
look at how much they paid

8481
04:30:16,300 --> 04:30:18,266
decide how much you wanna give them offer it

8482
04:30:18,266 --> 04:30:19,766
example I made personalized videos

8483
04:30:19,766 --> 04:30:20,700
this is me personally

8484
04:30:20,700 --> 04:30:23,500
I made personalized videos for 200 past customers

8485
04:30:23,500 --> 04:30:25,000
this is before AI and all that stuff

8486
04:30:25,000 --> 04:30:26,933
it took me like two days um

8487
04:30:26,933 --> 04:30:29,300
offering them $4,000 of credit to return

8488
04:30:29,300 --> 04:30:31,466
add urgency to roll over upsells

8489
04:30:31,466 --> 04:30:32,600
so make them one time only

8490
04:30:32,600 --> 04:30:34,066
so this is a key point so this is optional

8491
04:30:34,066 --> 04:30:35,733
it's up to you but this is how I prefer to do it

8492
04:30:35,733 --> 04:30:37,533
make the moment you present the offer

8493
04:30:37,533 --> 04:30:39,366
the only time to take the offer

8494
04:30:39,400 --> 04:30:41,200
so they don't get to sleep on it

8495
04:30:41,200 --> 04:30:41,600
so

8496
04:30:41,600 --> 04:30:43,966
you wanna surprise and delight them with this credit

8497
04:30:43,966 --> 04:30:45,966
or this discount so if they want the credit

8498
04:30:45,966 --> 04:30:47,666
they gotta take it now if not

8499
04:30:47,666 --> 04:30:49,600
no big deal they can always pay full price later

8500
04:30:49,800 --> 04:30:51,000
how to price a rollover upsell

8501
04:30:51,000 --> 04:30:52,666
so to make money on a discounted offer

8502
04:30:52,666 --> 04:30:53,800
you have to have profit left over

8503
04:30:53,800 --> 04:30:55,100
in order to discount it right

8504
04:30:55,100 --> 04:30:57,533
so I try to make the upsell at least four times more

8505
04:30:57,533 --> 04:30:58,700
than the rollover credit

8506
04:30:58,700 --> 04:31:01,733
so that gives me a 25% discount at most

8507
04:31:01,733 --> 04:31:03,500
if it's four times more expensive

8508
04:31:03,866 --> 04:31:05,200
remember the rules of discounting apply

8509
04:31:05,200 --> 04:31:06,733
bigger discounts make you less profit

8510
04:31:06,733 --> 04:31:08,900
but per sale but they get you more sales

8511
04:31:09,366 --> 04:31:11,500
now you don't need to credit the entire amount

8512
04:31:11,500 --> 04:31:12,666
I just like to highlight this again

8513
04:31:12,666 --> 04:31:13,700
because people do this

8514
04:31:13,700 --> 04:31:15,066
and then they ruin their businesses

8515
04:31:15,066 --> 04:31:16,166
I'm telling you don't do that

8516
04:31:16,166 --> 04:31:18,333
like you can just take as much or as little as you want

8517
04:31:18,333 --> 04:31:20,500
the goal is to simply get as much of a discount

8518
04:31:20,500 --> 04:31:21,900
that you get responses

8519
04:31:21,966 --> 04:31:22,166
so

8520
04:31:22,166 --> 04:31:24,566
if you find out that $200 is enough to move the needle

8521
04:31:24,566 --> 04:31:26,200
and the average person spend $2,000 a year

8522
04:31:26,200 --> 04:31:26,733
then you can say hey

8523
04:31:26,733 --> 04:31:28,400
your last purchase with me

8524
04:31:28,400 --> 04:31:30,200
of the 2,000 you spent last year was this thing

8525
04:31:30,200 --> 04:31:31,066
and that's what you choose to credit

8526
04:31:31,066 --> 04:31:32,100
you don't have to credit everything

8527
04:31:32,266 --> 04:31:33,200
if you have smaller if

8528
04:31:33,200 --> 04:31:34,900
if the person spent a very small time with you

8529
04:31:34,900 --> 04:31:36,200
and you have really big packages

8530
04:31:36,200 --> 04:31:37,066
credit the whole thing

8531
04:31:37,066 --> 04:31:38,333
if they spent a really long time with you

8532
04:31:38,333 --> 04:31:39,400
and you have small tickets

8533
04:31:39,400 --> 04:31:40,533
credit the last one so

8534
04:31:40,533 --> 04:31:41,333
I roll over whatever

8535
04:31:41,333 --> 04:31:42,966
I think would incentivize to buy the next thing

8536
04:31:43,000 --> 04:31:44,533
and you can just test to find the sweet spot

8537
04:31:44,533 --> 04:31:45,733
in the beginning it's $500

8538
04:31:45,733 --> 04:31:47,466
you can test 300 whatever

8539
04:31:47,466 --> 04:31:48,933
this is my famous gift card play

8540
04:31:48,933 --> 04:31:51,133
the way that this works and this is a savage play

8541
04:31:51,133 --> 04:31:52,366
and it basically is a rollover

8542
04:31:52,366 --> 04:31:54,033
just like package differently

8543
04:31:54,266 --> 04:31:56,233
is that you say hey

8544
04:31:56,300 --> 04:31:58,366
this works great for like holiday seasons

8545
04:31:58,366 --> 04:32:00,400
things like that say hey

8546
04:32:00,400 --> 04:32:02,400
this also crushes for Black Friday

8547
04:32:02,900 --> 04:32:08,300
I'm giving 200 dollar gift cards away for 90% off

8548
04:32:08,933 --> 04:32:10,766
limit 2 per person

8549
04:32:11,166 --> 04:32:13,066
and you can only use them on someone else

8550
04:32:13,066 --> 04:32:14,000
cause it's the holiday season

8551
04:32:14,000 --> 04:32:15,066
so you can do this for Christmas

8552
04:32:15,066 --> 04:32:16,100
and you can do this for Black Friday

8553
04:32:16,100 --> 04:32:17,366
so you can use it twice if you want

8554
04:32:17,500 --> 04:32:18,600
now the key

8555
04:32:18,600 --> 04:32:22,100
here you can also do for uh birthdays uh sorry

8556
04:32:22,100 --> 04:32:22,733
not birthdays sorry

8557
04:32:22,733 --> 04:32:25,200
they give it to other people as birthday gifts anyways

8558
04:32:26,666 --> 04:32:28,300
when customers buy the gift card

8559
04:32:28,400 --> 04:32:30,866
ask them who they want to make it out to

8560
04:32:30,866 --> 04:32:32,900
and if they'll make an introduction

8561
04:32:33,266 --> 04:32:35,000
then when that person comes in

8562
04:32:35,000 --> 04:32:36,466
the person they introduced comes in

8563
04:32:36,466 --> 04:32:39,166
you roll their gift card over into the main offer

8564
04:32:39,166 --> 04:32:41,233
and so some people see this and they're like

8565
04:32:41,400 --> 04:32:43,800
you want me to give 90% off my main stuff

8566
04:32:43,800 --> 04:32:44,766
it's like no bro

8567
04:32:44,766 --> 04:32:46,500
I want you to sell a 2 thousand dollar thing

8568
04:32:46,500 --> 04:32:49,566
and give 200 dollar gift cards away for 20 bucks

8569
04:32:49,933 --> 04:32:52,166
so what's really happening here

8570
04:32:52,166 --> 04:32:55,800
you're gonna get paid $20 to get a lead

8571
04:32:55,800 --> 04:32:57,333
that's a hot referral that

8572
04:32:57,333 --> 04:32:59,500
you're then gonna take the 200 dollars

8573
04:32:59,500 --> 04:33:01,900
and roll it into a two thousand dollar product

8574
04:33:01,900 --> 04:33:04,000
which you may have marked up by 200 dollars

8575
04:33:04,500 --> 04:33:05,966
or you add something to it

8576
04:33:05,966 --> 04:33:06,933
that's high margin

8577
04:33:06,933 --> 04:33:09,166
that you can justify adding the 200 dollars for that

8578
04:33:09,166 --> 04:33:11,266
then you can take the deduction off of all right

8579
04:33:11,266 --> 04:33:12,933
so you make the value of the gift card

8580
04:33:12,933 --> 04:33:15,166
20% of the price whatever you want to sell next

8581
04:33:15,166 --> 04:33:16,666
so if it's a 200 dollar gift card

8582
04:33:16,666 --> 04:33:20,766
you make that one fifth of the price so 200 dollars

8583
04:33:20,766 --> 04:33:22,666
if I had a 2,000 dollar offer that'd be 1/10

8584
04:33:22,666 --> 04:33:25,166
but minimum should be 5

8585
04:33:25,166 --> 04:33:26,700
x would be a thousand dollar offer

8586
04:33:27,066 --> 04:33:28,933
obviously you can make it more expensive than that

8587
04:33:28,933 --> 04:33:31,100
you just want it to be enough that it drives a purchase

8588
04:33:31,366 --> 04:33:32,266
alright in our example

8589
04:33:32,266 --> 04:33:34,000
we sell 200 dollar gift card for 20 bucks

8590
04:33:34,000 --> 04:33:35,600
then apply that 200 dollar offer

8591
04:33:35,600 --> 04:33:37,466
with at least a thousand dollar price tag

8592
04:33:37,466 --> 04:33:39,000
people pay you to refer their friends

8593
04:33:39,000 --> 04:33:41,366
plus you get cash from unused gift cards

8594
04:33:41,566 --> 04:33:44,100
wins all around that is the gift card play

8595
04:33:44,100 --> 04:33:46,333
final points rollover up sales credit

8596
04:33:46,333 --> 04:33:47,800
summer all of a customer's previous purchases

8597
04:33:47,800 --> 04:33:49,933
towards your next offer do rollover upstairs

8598
04:33:49,933 --> 04:33:50,666
figure out who to upsell

8599
04:33:50,666 --> 04:33:52,700
what to upsell and how to credit the rollover

8600
04:33:52,700 --> 04:33:53,733
who to upsell old customers

8601
04:33:53,733 --> 04:33:55,366
upset customers other people's upset customers

8602
04:33:55,366 --> 04:33:57,000
current customers what to upsell

8603
04:33:57,000 --> 04:33:59,000
more of something better of something new

8604
04:33:59,000 --> 04:34:00,900
something new just make sure that you make a profit

8605
04:34:00,900 --> 04:34:02,100
after applying your discount

8606
04:34:02,266 --> 04:34:03,300
how to roll over the credit

8607
04:34:03,300 --> 04:34:04,866
you can do full or partial purchase

8608
04:34:05,100 --> 04:34:06,800
uh give it upfront or you can spread it out

8609
04:34:06,800 --> 04:34:08,366
we went through examples of all those

8610
04:34:08,366 --> 04:34:09,666
you can price your next offer

8611
04:34:09,666 --> 04:34:12,000
for at least four times higher than the credit

8612
04:34:12,100 --> 04:34:13,900
so this makes it a 25% discount

8613
04:34:13,900 --> 04:34:15,166
everything above that is gravy

8614
04:34:15,166 --> 04:34:16,266
I wouldn't do less than that

8615
04:34:16,266 --> 04:34:18,133
and to get more takers add urgency

8616
04:34:18,133 --> 04:34:20,666
make your roll over credit a one time only offer

8617
04:34:20,800 --> 04:34:23,033
and boom that is the rollover upsell

8618
04:34:24,766 --> 04:34:26,700
so we just covered all four upsells

8619
04:34:26,700 --> 04:34:28,000
the classic upsell menu upsell

8620
04:34:28,000 --> 04:34:29,166
anchor upsell rollover upsell

8621
04:34:29,166 --> 04:34:30,866
and if you're like man that was amazing

8622
04:34:31,166 --> 04:34:32,600
yes I love

8623
04:34:32,600 --> 04:34:33,266
those

8624
04:34:33,266 --> 04:34:37,333
and the problem is what happens when someone says no

8625
04:34:37,333 --> 04:34:39,266
enter down sell offers

8626
04:34:39,500 --> 04:34:41,666
so down sell offers of the third prong

8627
04:34:41,666 --> 04:34:43,333
of our four prong money model

8628
04:34:43,333 --> 04:34:45,266
it's what you do when someone says no

8629
04:34:45,300 --> 04:34:48,000
so here's the description in the last section is up

8630
04:34:48,000 --> 04:34:49,866
so offers to get people to buy more stuff

8631
04:34:49,900 --> 04:34:52,033
if we did a good job we've turned a profit too

8632
04:34:52,133 --> 04:34:53,966
down sales begin after a customer says no

8633
04:34:53,966 --> 04:34:56,333
we find a solution to meet the customer's budget

8634
04:34:56,333 --> 04:34:57,600
so we down sell in two ways

8635
04:34:57,600 --> 04:35:00,366
we change how they pay or what they get so how they pay

8636
04:35:00,366 --> 04:35:02,766
how much they pay versus how much they pay over time

8637
04:35:02,766 --> 04:35:05,166
so now versus later and then what they get

8638
04:35:05,166 --> 04:35:06,100
we change the quality

8639
04:35:06,100 --> 04:35:07,500
the quantity or something different

8640
04:35:07,500 --> 04:35:09,200
so here's what not to do

8641
04:35:09,200 --> 04:35:11,366
so these are the rules of not down selling

8642
04:35:11,500 --> 04:35:13,466
so this is a real story from a friend

8643
04:35:13,566 --> 04:35:15,000
so I was buying a car

8644
04:35:15,000 --> 04:35:17,200
and the salesman tried to upsell car insurance

8645
04:35:17,266 --> 04:35:18,200
the cost of the insurance

8646
04:35:18,200 --> 04:35:20,066
when he first started was $5,000

8647
04:35:20,066 --> 04:35:21,000
I said no

8648
04:35:21,000 --> 04:35:23,366
but then he lowered the price I said no again

8649
04:35:23,366 --> 04:35:24,300
he kept lowering the price

8650
04:35:24,300 --> 04:35:26,700
until the same insurance he first offered was at

8651
04:35:26,700 --> 04:35:30,366
for $5,000 was now $400 I still said no

8652
04:35:30,366 --> 04:35:32,666
at first I said no because it was way too much money

8653
04:35:32,666 --> 04:35:33,300
but by the end

8654
04:35:33,300 --> 04:35:35,066
I said no because I didn't trust the guy

8655
04:35:35,066 --> 04:35:36,700
the entire experience felt dirty

8656
04:35:36,700 --> 04:35:38,933
then I wondered was he ripping me off in the car too

8657
04:35:38,933 --> 04:35:40,866
now I didn't want to buy the car from him either

8658
04:35:41,300 --> 04:35:44,000
how to not down sell people

8659
04:35:44,000 --> 04:35:45,866
lower the price to close a sale

8660
04:35:45,966 --> 04:35:48,200
but even if you close this one sale

8661
04:35:48,200 --> 04:35:49,966
the customer will question every other price

8662
04:35:49,966 --> 04:35:51,066
you offer them from that point

8663
04:35:51,066 --> 04:35:54,000
going forward and whoever they tell

8664
04:35:54,000 --> 04:35:56,166
that's the bad part not just them

8665
04:35:56,166 --> 04:35:59,700
everyone else too so you trade trust for a buck

8666
04:35:59,933 --> 04:36:01,766
not worth it here's the note

8667
04:36:01,900 --> 04:36:04,100
you can offer something different for less

8668
04:36:04,100 --> 04:36:06,533
you just can't offer the same thing for less

8669
04:36:06,533 --> 04:36:09,133
if he had offered different insurance for less

8670
04:36:09,133 --> 04:36:10,766
rather than the same insurance for less

8671
04:36:10,766 --> 04:36:11,733
he probably would have been fine

8672
04:36:11,733 --> 04:36:13,366
and kept her trust and closed the sale

8673
04:36:13,466 --> 04:36:16,100
so the key point was that he offered the same thing

8674
04:36:16,100 --> 04:36:18,866
that was once 5K for $400

8675
04:36:18,866 --> 04:36:20,866
that's the problem because now

8676
04:36:20,866 --> 04:36:23,333
it basically means that your price has no meaning

8677
04:36:23,333 --> 04:36:24,666
and you're making it all up

8678
04:36:24,666 --> 04:36:26,600
which of course we do make it all up

8679
04:36:26,600 --> 04:36:29,666
but we never admit that so let's begin

8680
04:36:30,666 --> 04:36:31,800
rule of downselling

8681
04:36:31,933 --> 04:36:33,900
remember that they said no to this offer

8682
04:36:33,900 --> 04:36:36,200
not all offers see it for what it is

8683
04:36:36,200 --> 04:36:38,066
an opportunity to find out what they really want

8684
04:36:38,066 --> 04:36:41,300
and then profit from it down sells are trades

8685
04:36:41,333 --> 04:36:43,100
when down selling you work with the customer

8686
04:36:43,100 --> 04:36:44,566
to find a combination of giving

8687
04:36:44,566 --> 04:36:46,866
and getting until you get a match

8688
04:36:46,933 --> 04:36:48,333
so if you're gonna give something

8689
04:36:48,333 --> 04:36:50,133
you should get something back personalize

8690
04:36:50,133 --> 04:36:50,800
don't pressure

8691
04:36:50,800 --> 04:36:52,900
so figure out what they like and what they don't like

8692
04:36:52,900 --> 04:36:54,300
then offer more of what they like

8693
04:36:54,300 --> 04:36:55,466
and less of what they don't

8694
04:36:55,466 --> 04:36:56,900
with a price to match it

8695
04:36:56,900 --> 04:36:59,766
if someone refuses my large soda upsell

8696
04:36:59,766 --> 04:37:01,266
I can offer them alternatives

8697
04:37:01,266 --> 04:37:04,766
I could ask if they want a small or juice or coffee

8698
04:37:04,766 --> 04:37:06,466
am I being offensive by asking

8699
04:37:06,500 --> 04:37:08,766
no it's offensive not to offer to help

8700
04:37:08,766 --> 04:37:10,566
offering the same thing in new ways

8701
04:37:10,566 --> 04:37:12,700
you limit down sells to what you've got

8702
04:37:12,700 --> 04:37:14,366
so think of downsell as more like

8703
04:37:14,366 --> 04:37:16,866
100 ways to offer the stuff you already have

8704
04:37:16,866 --> 04:37:18,500
not 100 different offers

8705
04:37:18,566 --> 04:37:20,533
don't drop your price just to get someone to buy

8706
04:37:20,533 --> 04:37:21,666
alright I'm gonna reinforce this one

8707
04:37:21,666 --> 04:37:21,766
because

8708
04:37:21,766 --> 04:37:23,700
this is the one that everyone just keeps messing up

8709
04:37:23,733 --> 04:37:26,400
first off dropping your price is not downselling

8710
04:37:26,400 --> 04:37:27,766
it's discounting so

8711
04:37:27,766 --> 04:37:29,400
if someone wants what you have

8712
04:37:29,400 --> 04:37:30,700
and just doesn't want to pay the price

8713
04:37:30,700 --> 04:37:31,800
well that's tough cookies

8714
04:37:31,933 --> 04:37:35,366
on the other hand you can offer them to pay less now

8715
04:37:35,366 --> 04:37:37,866
and more money over time which is a payment plan

8716
04:37:38,166 --> 04:37:39,866
so let's go through the lineup

8717
04:37:39,933 --> 04:37:41,566
we're gonna go through payment plan down sales

8718
04:37:41,566 --> 04:37:43,300
how they pay trial with penalty

8719
04:37:43,300 --> 04:37:44,400
which is also how they pay

8720
04:37:44,400 --> 04:37:45,466
but just like a very in depth

8721
04:37:45,466 --> 04:37:47,800
tactical thing that I think people do trials wrong

8722
04:37:47,800 --> 04:37:49,466
and I'll explain how I like to do them

8723
04:37:49,666 --> 04:37:50,766
uh feature down sales

8724
04:37:50,766 --> 04:37:53,166
which is changing what they get for the price

8725
04:37:53,333 --> 04:37:56,200
these down sales boost 30 day profits even further

8726
04:37:56,200 --> 04:37:57,800
they do it by making even more sales

8727
04:37:57,800 --> 04:37:59,400
when customers would have said no

8728
04:37:59,400 --> 04:38:00,900
and you can use a down sale offer

8729
04:38:00,900 --> 04:38:02,366
at any point in a money model

8730
04:38:02,366 --> 04:38:03,066
you can use it up front

8731
04:38:03,066 --> 04:38:04,566
you can use it after someone takes an up sale

8732
04:38:04,566 --> 04:38:06,966
or says no to an up sale you can use it on the back end

8733
04:38:06,966 --> 04:38:07,933
any of those things

8734
04:38:07,933 --> 04:38:10,866
and that begins our down sell offers

8735
04:38:10,866 --> 04:38:12,366
let's start with payment plan down sells

8736
04:38:14,100 --> 04:38:15,700
so we just covered down sell offers

8737
04:38:15,700 --> 04:38:18,200
now let's rock and roll into payment plan down sells

8738
04:38:18,266 --> 04:38:21,100
the main five as always and let us begin

8739
04:38:21,100 --> 04:38:22,800
so here's how I Learned it

8740
04:38:24,266 --> 04:38:25,366
one month in the business

8741
04:38:25,366 --> 04:38:26,966
I got one month's rent left

8742
04:38:26,966 --> 04:38:29,366
and I'd only made a few sales that first week

8743
04:38:29,366 --> 04:38:30,200
so halfway through the month

8744
04:38:30,200 --> 04:38:32,633
a prospect comes in and I really needed the cash

8745
04:38:32,766 --> 04:38:34,533
and so she said no to buying

8746
04:38:34,533 --> 04:38:36,700
and so normally I just would have given up

8747
04:38:36,700 --> 04:38:38,200
but I really needed the cash

8748
04:38:38,300 --> 04:38:40,566
and so I was like alright well can you put half down

8749
04:38:40,566 --> 04:38:41,600
and she said no

8750
04:38:41,600 --> 04:38:43,333
and I was like okay can you put a third down

8751
04:38:43,333 --> 04:38:45,200
we'll do three payments and she's like no

8752
04:38:45,266 --> 04:38:47,066
I was like well what can you do

8753
04:38:47,066 --> 04:38:48,366
and she's like well I can't do anything today

8754
04:38:48,366 --> 04:38:49,900
she's like but I get paid on the first

8755
04:38:49,900 --> 04:38:51,266
I can put the whole thing down then

8756
04:38:51,533 --> 04:38:54,100
and rent was doing the fifth and so I was like

8757
04:38:54,100 --> 04:38:56,533
okay so I put zero dollars down today

8758
04:38:56,533 --> 04:38:58,733
and then I put her whole payment on the first

8759
04:38:58,733 --> 04:39:02,333
and it went through and I was able to pay rent

8760
04:39:02,333 --> 04:39:04,500
and all was well in the world Hooray

8761
04:39:04,500 --> 04:39:06,400
so that was my first real experience with

8762
04:39:06,400 --> 04:39:07,466
learning how payment plan down

8763
04:39:07,466 --> 04:39:08,000
sales worked

8764
04:39:08,000 --> 04:39:09,466
I got a little more sophisticated over time

8765
04:39:09,466 --> 04:39:10,566
which is what I'll share with you

8766
04:39:10,566 --> 04:39:12,733
so here's how they work overall

8767
04:39:12,733 --> 04:39:15,066
so payments plans work for any price tag

8768
04:39:15,066 --> 04:39:17,166
that's one of the nice benefits but they are a gamble

8769
04:39:17,166 --> 04:39:19,900
they make money when customers complete payments

8770
04:39:20,100 --> 04:39:23,133
they lose money when people cancel before you profit

8771
04:39:23,133 --> 04:39:25,433
or when people who would have paid in full

8772
04:39:25,500 --> 04:39:28,500
take payment plans instead and then cancel early

8773
04:39:28,533 --> 04:39:31,300
so note this is not selling a cheaper thing

8774
04:39:31,300 --> 04:39:32,933
this is selling the same thing

8775
04:39:32,933 --> 04:39:34,366
with different payment terms

8776
04:39:34,366 --> 04:39:34,666
and so

8777
04:39:34,666 --> 04:39:37,766
people reject offers when they cost too much today

8778
04:39:37,766 --> 04:39:40,166
not necessarily when they cost too much overall

8779
04:39:40,166 --> 04:39:41,200
this is a massive

8780
04:39:41,200 --> 04:39:42,666
miscommunication and misunderstanding

8781
04:39:42,666 --> 04:39:44,633
for salespeople and business owners

8782
04:39:44,800 --> 04:39:45,933
people saying no

8783
04:39:45,933 --> 04:39:47,966
doesn't necessarily mean that you're mispriced

8784
04:39:47,966 --> 04:39:48,466
it just means that

8785
04:39:48,466 --> 04:39:50,400
you might have to change the terms of payment alright

8786
04:39:50,400 --> 04:39:52,400
it's usually about what they have to pay right now

8787
04:39:52,400 --> 04:39:53,866
not what they have to pay in general

8788
04:39:53,966 --> 04:39:54,300
and so

8789
04:39:54,300 --> 04:39:56,466
people mistakenly think that they need cheaper stuff

8790
04:39:56,466 --> 04:39:57,966
and this is not the best course of action

8791
04:39:57,966 --> 04:39:59,533
in my opinion payment plans

8792
04:39:59,533 --> 04:40:02,166
get the most buyers to pay the highest price

8793
04:40:02,166 --> 04:40:04,133
by getting them to pay less now in the moment

8794
04:40:04,133 --> 04:40:06,500
but pay full price or higher over time

8795
04:40:06,500 --> 04:40:09,233
so here are the 7 steps of a payment plan down sell

8796
04:40:09,333 --> 04:40:11,100
we reward for paying in full

8797
04:40:11,100 --> 04:40:12,666
rather than punish for paying overtime

8798
04:40:12,666 --> 04:40:13,566
this is a big thing that I

8799
04:40:13,566 --> 04:40:15,133
I don't see taught very much

8800
04:40:15,133 --> 04:40:16,500
and so I'm gonna explain this one in depth

8801
04:40:16,500 --> 04:40:17,366
cause it's really important

8802
04:40:17,700 --> 04:40:19,566
uh next we're gonna offer financing options

8803
04:40:19,566 --> 04:40:20,566
half now half later

8804
04:40:20,566 --> 04:40:21,933
check to see if they want the thing

8805
04:40:21,933 --> 04:40:23,300
offer to split in the 3 payments

8806
04:40:23,300 --> 04:40:24,366
or evenly spread the payments

8807
04:40:24,366 --> 04:40:25,433
offer a free trial

8808
04:40:25,633 --> 04:40:28,133
so let's give some deep down examples

8809
04:40:28,133 --> 04:40:30,166
so step 1 reward for paying in full

8810
04:40:30,166 --> 04:40:31,566
rather than punish for paying overtime

8811
04:40:31,566 --> 04:40:33,200
so if I take on the risk of a payment

8812
04:40:33,200 --> 04:40:34,266
because if you're a business owner

8813
04:40:34,266 --> 04:40:35,533
and they don't pay you everything

8814
04:40:35,533 --> 04:40:36,500
and you start delivering stuff

8815
04:40:36,500 --> 04:40:37,966
then you take on risk right

8816
04:40:37,966 --> 04:40:40,366
so then what I do is I increase the price

8817
04:40:40,366 --> 04:40:42,900
now normally businesses do this by charging interest

8818
04:40:42,900 --> 04:40:46,166
but everybody hates getting charged interest

8819
04:40:46,166 --> 04:40:49,666
and so instead what I do is I anchor my first price

8820
04:40:49,666 --> 04:40:53,300
I present is the fully baked payment plan price

8821
04:40:53,466 --> 04:40:55,966
and then when I say got it

8822
04:40:55,966 --> 04:40:57,500
would you like to save some money

8823
04:40:57,500 --> 04:40:58,333
they say yes

8824
04:40:58,333 --> 04:41:01,300
and I'm like you can prepay and save this much money

8825
04:41:01,300 --> 04:41:03,666
so now them prepaying is a savings

8826
04:41:03,733 --> 04:41:05,500
rather than getting penalized

8827
04:41:05,666 --> 04:41:07,800
so think about like this let's say it's 10 k and 12 k

8828
04:41:07,800 --> 04:41:09,133
10 k is the paid in full price

8829
04:41:09,133 --> 04:41:10,766
12 k is the payment plan price

8830
04:41:11,000 --> 04:41:12,566
instead of instead of pitching people

8831
04:41:12,566 --> 04:41:14,200
cause remember anchors still work

8832
04:41:14,333 --> 04:41:15,533
instead of pitching people 10

8833
04:41:15,533 --> 04:41:16,900
and then they say they know they can't afford it

8834
04:41:16,900 --> 04:41:18,333
and then saying okay fine

8835
04:41:18,333 --> 04:41:21,966
pay me 12 because you can't afford it feels tough

8836
04:41:22,100 --> 04:41:26,266
so instead pitch 12 I know you're afraid of doing it

8837
04:41:26,400 --> 04:41:27,466
don't be

8838
04:41:27,466 --> 04:41:30,033
the difference in interest is usually never enough

8839
04:41:30,066 --> 04:41:31,800
to change a purchasing decision

8840
04:41:32,066 --> 04:41:33,733
so like if you had 10 and 20

8841
04:41:33,733 --> 04:41:36,600
then yeah but most interest whatever you usually

8842
04:41:36,600 --> 04:41:38,633
you know add on top might be 10 and 20%

8843
04:41:38,700 --> 04:41:39,966
and so that's not usually

8844
04:41:39,966 --> 04:41:41,566
enough to get into a different buying tier

8845
04:41:41,600 --> 04:41:44,566
so you present here and if someone says yes

8846
04:41:44,566 --> 04:41:46,700
and by the way if everyone keeps saying yes at that

8847
04:41:46,700 --> 04:41:48,900
and then you don't even have to mention the pre pay

8848
04:41:48,900 --> 04:41:51,400
then it also allows you to incrementally step up

8849
04:41:51,400 --> 04:41:53,100
and get kind of like a soft indication

8850
04:41:53,100 --> 04:41:55,366
in the marketplace of whether or not you can sustain

8851
04:41:55,400 --> 04:41:56,700
a higher price point so

8852
04:41:56,700 --> 04:41:58,966
I actually like to use payment plans as a great test

8853
04:41:58,966 --> 04:42:00,066
for where I'm anchoring

8854
04:42:00,066 --> 04:42:01,866
and I can keep nudging up my price

8855
04:42:01,866 --> 04:42:03,333
before I start seeing people freak out

8856
04:42:03,333 --> 04:42:04,833
so it's kind of like a testing price

8857
04:42:04,900 --> 04:42:07,600
so I would present 12 they say

8858
04:42:08,000 --> 04:42:09,333
I'm not sure if I can do it

8859
04:42:09,333 --> 04:42:11,133
or maybe they can do it and they're great

8860
04:42:11,133 --> 04:42:12,166
Wanna save some money

8861
04:42:12,166 --> 04:42:14,366
now they prepay 10 and they're stoked

8862
04:42:14,500 --> 04:42:16,166
if they can't do 12 then it's like fine

8863
04:42:16,166 --> 04:42:17,466
oh you don't have to do it all upfront

8864
04:42:17,466 --> 04:42:19,400
but now I don't have to increase the price

8865
04:42:19,500 --> 04:42:20,600
they said they couldn't do 12

8866
04:42:20,600 --> 04:42:21,266
and then I said cool

8867
04:42:21,266 --> 04:42:22,333
you wanna spread it over time

8868
04:42:22,333 --> 04:42:24,366
and now it seems like I'm adding no interest

8869
04:42:24,366 --> 04:42:27,600
to the original price see how different that feels like

8870
04:42:27,600 --> 04:42:28,500
oh you can't do 12

8871
04:42:28,500 --> 04:42:29,700
we can break into payments for you

8872
04:42:29,700 --> 04:42:30,100
but if oh

8873
04:42:30,100 --> 04:42:32,100
you can't do 10 then pay me 12

8874
04:42:32,100 --> 04:42:32,966
it's like ugh

8875
04:42:33,133 --> 04:42:34,333
tough right

8876
04:42:34,333 --> 04:42:35,600
and this gets around all of that

8877
04:42:35,600 --> 04:42:37,566
so No. 2 third party financing

8878
04:42:37,566 --> 04:42:38,666
credit card and layaway option

8879
04:42:38,666 --> 04:42:39,766
so third party financing

8880
04:42:39,766 --> 04:42:41,566
means another company pays me now

8881
04:42:41,566 --> 04:42:43,066
or pays you now as a business owner

8882
04:42:43,066 --> 04:42:44,933
and the customer has a payment plan with them

8883
04:42:44,933 --> 04:42:47,333
the other party so car dealers do this all the time

8884
04:42:47,333 --> 04:42:49,466
the dealer gets money from the financing company today

8885
04:42:49,466 --> 04:42:51,266
and the customer pays the financing company tomorrow

8886
04:42:51,400 --> 04:42:52,700
most times by the way

8887
04:42:52,700 --> 04:42:54,300
adding third party financing in

8888
04:42:54,466 --> 04:42:57,700
increases revenue by 35% on average

8889
04:42:57,800 --> 04:42:58,366
note

8890
04:42:58,366 --> 04:43:00,800
it does take work to get third party financing set up

8891
04:43:00,800 --> 04:43:02,866
but it is typically worth the effort

8892
04:43:02,866 --> 04:43:03,700
credit cards now you're like

8893
04:43:03,700 --> 04:43:05,866
how is this how is this third party financing

8894
04:43:05,866 --> 04:43:07,266
I Learned this from a master salesman

8895
04:43:07,266 --> 04:43:09,000
so I will just teach it to you as I was taught

8896
04:43:09,000 --> 04:43:09,800
to me

8897
04:43:10,733 --> 04:43:13,000
this is insane close that this works

8898
04:43:13,000 --> 04:43:13,800
and it does work

8899
04:43:13,800 --> 04:43:15,866
and it still blows my mind that it works

8900
04:43:16,166 --> 04:43:16,866
just ask

8901
04:43:16,866 --> 04:43:18,966
would you rather that I decide your payment terms

8902
04:43:18,966 --> 04:43:20,100
or that you decide

8903
04:43:20,900 --> 04:43:21,966
everyone then says well

8904
04:43:21,966 --> 04:43:23,866
I would prefer to decide and when they do you just say

8905
04:43:23,866 --> 04:43:25,300
awesome just use your credit card

8906
04:43:25,300 --> 04:43:26,766
that way you can uh

8907
04:43:26,766 --> 04:43:29,300
pick whatever payment plan you want that works for you

8908
04:43:29,300 --> 04:43:31,266
if they say well shoot what's the alternative to that

8909
04:43:31,266 --> 04:43:32,900
then you say I have an in house plan

8910
04:43:32,900 --> 04:43:35,033
which is me picking the dates of when you gotta pay

8911
04:43:35,533 --> 04:43:37,900
and that's usually gonna be a much shorter time frame

8912
04:43:37,900 --> 04:43:39,800
than what a credit card would allow you to pay it on

8913
04:43:39,900 --> 04:43:42,666
and so as crazy as this is

8914
04:43:42,666 --> 04:43:45,233
it's wild to me that this reframe actually works

8915
04:43:45,400 --> 04:43:47,566
but it does so

8916
04:43:47,566 --> 04:43:49,866
especially if you sell to consumers like that

8917
04:43:49,866 --> 04:43:50,700
reframe works

8918
04:43:50,700 --> 04:43:54,700
no idea why I only state what I know that it works

8919
04:43:55,166 --> 04:43:57,000
alright the next one is layaway

8920
04:43:57,000 --> 04:43:59,200
this is actually a personal favorite of mine

8921
04:43:59,300 --> 04:44:02,500
layaway means paying off the product before getting it

8922
04:44:02,500 --> 04:44:03,666
this is actually how they used to do

8923
04:44:03,666 --> 04:44:04,600
in the olden days

8924
04:44:04,600 --> 04:44:06,766
when there was no credit and banks were all sketchy

8925
04:44:06,766 --> 04:44:07,700
people would do layaway

8926
04:44:07,700 --> 04:44:08,900
they go to the store they say hey

8927
04:44:08,900 --> 04:44:10,866
I wanna buy that thing and the guy would say great

8928
04:44:10,866 --> 04:44:12,933
drop off money every Monday for the next 4 Mondays

8929
04:44:12,933 --> 04:44:13,966
and then I'll give it to you

8930
04:44:13,966 --> 04:44:15,466
and it was a very simple way

8931
04:44:15,466 --> 04:44:16,333
now the thing is

8932
04:44:16,333 --> 04:44:18,766
is that the customer takes on the risk

8933
04:44:18,866 --> 04:44:21,100
not the business but in my opinion

8934
04:44:21,100 --> 04:44:22,700
I think there's a lot of really weird

8935
04:44:22,700 --> 04:44:24,133
little psychological things with it

8936
04:44:24,133 --> 04:44:26,266
because if you make payments

8937
04:44:26,766 --> 04:44:27,133
it's like

8938
04:44:27,133 --> 04:44:29,466
it's like building up anticipation for a vacation

8939
04:44:29,533 --> 04:44:30,566
it's like the whole time like man

8940
04:44:30,566 --> 04:44:31,400
I can't wait to get this thing

8941
04:44:31,400 --> 04:44:33,466
I can't wait to get this thing on the flip side

8942
04:44:33,466 --> 04:44:34,600
when you get the whole thing

8943
04:44:34,600 --> 04:44:35,600
and then you make payments

8944
04:44:35,800 --> 04:44:38,166
you already got the value and now every time you pay

8945
04:44:38,166 --> 04:44:40,366
you like hate them a little bit more right

8946
04:44:40,466 --> 04:44:41,900
I mean ideally that's not the case

8947
04:44:41,900 --> 04:44:42,666
but I'm just

8948
04:44:42,666 --> 04:44:44,733
I'm just explaining my experience as a consumer

8949
04:44:44,733 --> 04:44:45,966
some businesses can't do this

8950
04:44:45,966 --> 04:44:47,666
they can't they can't do a layaway

8951
04:44:47,700 --> 04:44:50,766
but if you do have the opportunity or the option

8952
04:44:50,800 --> 04:44:51,800
where it's

8953
04:44:51,800 --> 04:44:54,466
where you can delay starting for a little bit

8954
04:44:54,466 --> 04:44:56,400
whether it's a service or a product

8955
04:44:56,666 --> 04:44:59,400
having them start paying is a great way to do this

8956
04:44:59,400 --> 04:45:00,400
and the nice thing with layaways

8957
04:45:00,400 --> 04:45:01,900
it's as flexible as you want

8958
04:45:01,900 --> 04:45:03,900
and I'll tell you the story of how I Learned this

8959
04:45:04,066 --> 04:45:07,100
so I had Alan which was our software company

8960
04:45:07,200 --> 04:45:09,700
I mean we still own 25% of it but um

8961
04:45:09,700 --> 04:45:10,733
when we started the business

8962
04:45:10,733 --> 04:45:13,166
I Learned that in person on boarding

8963
04:45:13,333 --> 04:45:15,200
LED to higher stick rates and happier customers

8964
04:45:15,200 --> 04:45:17,300
and you wanna get more customer feedback etcetera

8965
04:45:17,300 --> 04:45:20,533
and so I would do a single company

8966
04:45:20,533 --> 04:45:23,066
full day on boarding or half day on boarding

8967
04:45:23,366 --> 04:45:25,933
and I was on the phone selling that onboarding

8968
04:45:25,933 --> 04:45:27,466
now the onboarding for context

8969
04:45:27,466 --> 04:45:29,000
this was an enterprise level sale

8970
04:45:29,000 --> 04:45:30,633
so it was like $20,000

8971
04:45:30,700 --> 04:45:32,666
to just be able to white label the stuff

8972
04:45:32,700 --> 04:45:33,700
um and then use the

8973
04:45:33,700 --> 04:45:35,333
the whole product cause it added a whole

8974
04:45:35,333 --> 04:45:36,766
another revenue stream to agencies

8975
04:45:37,066 --> 04:45:38,466
and so I was on the phone

8976
04:45:38,466 --> 04:45:40,133
this must have been the first week or two

8977
04:45:40,133 --> 04:45:41,933
and I was on with these uh

8978
04:45:41,933 --> 04:45:46,266
young agency owners and they said um

8979
04:45:46,333 --> 04:45:48,400
OK 20 guys do you guys do payment plans

8980
04:45:48,400 --> 04:45:50,366
and I was like yeah sure

8981
04:45:50,466 --> 04:45:52,633
um I said you can break it up however you want

8982
04:45:52,700 --> 04:45:53,966
and they were like awesome

8983
04:45:53,966 --> 04:45:56,766
so we'll just do 800 bucks every other week

8984
04:45:57,033 --> 04:45:59,066
so that's what they said and they're like

8985
04:45:59,066 --> 04:46:00,066
so with that being said

8986
04:46:00,066 --> 04:46:01,700
we good to come out you know uh

8987
04:46:01,700 --> 04:46:03,566
you know next week and I was like

8988
04:46:03,566 --> 04:46:05,466
oh no no you can't come out

8989
04:46:05,466 --> 04:46:07,766
I was like you can split it as many times as you want

8990
04:46:07,800 --> 04:46:10,333
but you gotta pay it off and the moment you pay it off

8991
04:46:10,333 --> 04:46:13,066
you can fly out and they they just said

8992
04:46:13,066 --> 04:46:14,000
oh

8993
04:46:14,866 --> 04:46:16,866
alright we'll put half down now and half in a month

8994
04:46:16,866 --> 04:46:18,000
and then we'll come out then

8995
04:46:18,333 --> 04:46:19,366
and so

8996
04:46:19,533 --> 04:46:22,833
they wanted to delay my payment for like six months

8997
04:46:23,066 --> 04:46:24,600
or more than that whatever the math is

8998
04:46:24,600 --> 04:46:26,666
on that and then as soon as I said oh no

8999
04:46:26,666 --> 04:46:28,466
you don't get the thing until you pay

9000
04:46:28,466 --> 04:46:30,433
they were able to do it in in a month

9001
04:46:30,733 --> 04:46:32,700
and so the nice thing with layaway is

9002
04:46:32,700 --> 04:46:33,533
that actually aligns

9003
04:46:33,533 --> 04:46:34,700
your incentives with the customers

9004
04:46:34,700 --> 04:46:36,866
they want to pay it off as fast as possible

9005
04:46:36,966 --> 04:46:38,200
so they can get the thing

9006
04:46:38,266 --> 04:46:40,400
when it's the other way when you're giving the value

9007
04:46:40,400 --> 04:46:41,200
they're incentivized

9008
04:46:41,200 --> 04:46:42,833
to make it last as long as possible

9009
04:46:42,900 --> 04:46:45,466
this is why I like layaway for the variety reasons

9010
04:46:45,466 --> 04:46:46,500
you can close anyone

9011
04:46:46,500 --> 04:46:48,466
you can make the payment terms as flexible as you want

9012
04:46:48,466 --> 04:46:49,766
you take don't take on risk

9013
04:46:49,766 --> 04:46:51,700
they have this kind of like working for it

9014
04:46:51,700 --> 04:46:54,533
earning it type feel and for all those reasons

9015
04:46:54,533 --> 04:46:55,966
I really like layaway

9016
04:46:55,966 --> 04:46:57,900
now if they say no to all of those offers

9017
04:46:57,900 --> 04:47:01,333
I move to step 3 so guys these are in sequence

9018
04:47:01,333 --> 04:47:03,033
so first we do the prepayment thing

9019
04:47:03,066 --> 04:47:05,133
they say no then we offer financing

9020
04:47:05,133 --> 04:47:07,066
they say no we say great

9021
04:47:07,066 --> 04:47:08,766
can you do half now and half later

9022
04:47:08,766 --> 04:47:10,933
so then I say when's the next time you get paid

9023
04:47:10,933 --> 04:47:13,400
if I'm doing a consumer sale if I'm doing a B to B sale

9024
04:47:13,400 --> 04:47:15,466
I'd be like when's your next inflow of cash

9025
04:47:15,466 --> 04:47:17,900
or do you have some sort of you know uh revenue thing

9026
04:47:17,900 --> 04:47:19,500
do you have any big contracts hitting whatever

9027
04:47:19,500 --> 04:47:20,466
after that I say

9028
04:47:20,466 --> 04:47:22,000
wanna just put half down today and then the rest

9029
04:47:22,000 --> 04:47:24,133
down when you get paid if they can't do that

9030
04:47:24,133 --> 04:47:24,766
then I say okay

9031
04:47:24,766 --> 04:47:26,200
well what's the most you can put down today

9032
04:47:26,200 --> 04:47:27,066
and I like that question

9033
04:47:27,066 --> 04:47:27,900
because it just cuts to the core

9034
04:47:27,900 --> 04:47:29,400
but what's the most you can put down today

9035
04:47:29,400 --> 04:47:30,333
when they offer an amount

9036
04:47:30,333 --> 04:47:31,900
you say great we'll put that down today

9037
04:47:31,900 --> 04:47:33,800
we'll put the rest when you get paid fair enough

9038
04:47:33,800 --> 04:47:34,866
so instead of doing half down

9039
04:47:34,866 --> 04:47:37,133
I might put a quarter down 75% when they get paid

9040
04:47:37,133 --> 04:47:39,066
but all I'm trying to do is compress forward cash

9041
04:47:39,066 --> 04:47:40,200
remember money models

9042
04:47:40,300 --> 04:47:41,400
what we're trying to do with customer finance

9043
04:47:41,400 --> 04:47:41,700
acquisition

9044
04:47:41,700 --> 04:47:43,366
is get as much as we can in the first 30 days

9045
04:47:43,366 --> 04:47:44,366
and this payment plan

9046
04:47:44,366 --> 04:47:46,300
downsize process is structured to do that

9047
04:47:46,300 --> 04:47:48,666
so I like scheduling payments off of paychecks

9048
04:47:48,666 --> 04:47:51,400
since that's when most people get paid every two weeks

9049
04:47:51,400 --> 04:47:52,900
so this boosts 30 day profits

9050
04:47:52,900 --> 04:47:53,800
more than monthly payments

9051
04:47:53,800 --> 04:47:55,133
so it's like half now

9052
04:47:55,133 --> 04:47:57,300
half in two weeks and then half and then you know

9053
04:47:57,300 --> 04:47:58,500
a third in the next two weeks

9054
04:47:58,500 --> 04:48:00,100
so all of I get three payments in 30 days

9055
04:48:00,100 --> 04:48:02,266
which is great and if they can't do those

9056
04:48:02,266 --> 04:48:05,033
I pause to make sure they actually want it

9057
04:48:05,100 --> 04:48:06,966
so sometimes people just keep saying no and I'm like

9058
04:48:06,966 --> 04:48:08,866
hey pulse check temperature check

9059
04:48:08,866 --> 04:48:10,466
we still good you still wanna do this

9060
04:48:10,533 --> 04:48:11,500
and so this is how I do it

9061
04:48:11,500 --> 04:48:12,133
no payment plans

9062
04:48:12,133 --> 04:48:14,333
gonna satisfy a customer who doesn't want the thing

9063
04:48:14,333 --> 04:48:15,266
so make sure the person

9064
04:48:15,266 --> 04:48:16,500
actually wants the thing

9065
04:48:16,500 --> 04:48:18,133
before putting more effort into selling it

9066
04:48:18,133 --> 04:48:19,433
so I might say something like

9067
04:48:19,466 --> 04:48:21,300
got it so money's tight right now real quick

9068
04:48:21,300 --> 04:48:22,766
just wanna make sure on a scale from 1 to 10

9069
04:48:22,766 --> 04:48:24,000
how bad do you wanna do this

9070
04:48:24,333 --> 04:48:26,000
now if they say 8 or above

9071
04:48:26,000 --> 04:48:27,666
then I keep offering payment plans and say awesome

9072
04:48:27,666 --> 04:48:28,766
don't worry we're gonna figure out something

9073
04:48:28,766 --> 04:48:29,800
that's gonna work for you

9074
04:48:29,966 --> 04:48:33,233
if they say 7 or below I say why not a ten

9075
04:48:33,400 --> 04:48:34,533
and then say something like

9076
04:48:34,533 --> 04:48:35,166
you're right

9077
04:48:35,166 --> 04:48:36,600
I think we may have something that could fit

9078
04:48:36,600 --> 04:48:39,200
be a better fit for you and then I pivot the sale

9079
04:48:39,200 --> 04:48:40,366
and so then you sell something different

9080
04:48:40,366 --> 04:48:43,100
which this is actually an outpoint or an exit ramp

9081
04:48:43,100 --> 04:48:44,466
that goes into feature down cells

9082
04:48:44,466 --> 04:48:47,533
which is two two videos from now so step five

9083
04:48:47,533 --> 04:48:49,166
we offer to split into three payments

9084
04:48:49,166 --> 04:48:51,200
so remember this point they said 8 to 10 right

9085
04:48:51,200 --> 04:48:54,366
on the scale I downsell from half down to a third down

9086
04:48:54,366 --> 04:48:55,900
so I offer a three payment options

9087
04:48:55,900 --> 04:48:59,200
so 1/3 now 1/3 on the next two paychecks or 1/3 now

9088
04:48:59,200 --> 04:49:00,700
and then 1/3 the next two months

9089
04:49:00,700 --> 04:49:01,500
if they still can't do it

9090
04:49:01,500 --> 04:49:03,133
then I offer to evenly spread payments

9091
04:49:03,133 --> 04:49:04,200
so if they still can't manage it

9092
04:49:04,200 --> 04:49:05,100
I evenly spread the payments

9093
04:49:05,100 --> 04:49:06,366
or the rest of their service

9094
04:49:06,366 --> 04:49:08,966
so even if someone signs up for 6 months of service

9095
04:49:08,966 --> 04:49:09,566
it doesn't mean

9096
04:49:09,566 --> 04:49:11,500
you need to have them pay you over 6 months

9097
04:49:11,500 --> 04:49:12,866
you can have them pay you in 3 months

9098
04:49:12,866 --> 04:49:13,700
for 6 months of service

9099
04:49:13,700 --> 04:49:15,533
you want to still front load as much as you can

9100
04:49:15,533 --> 04:49:17,600
you're the one who had to pay the cost of one

9101
04:49:17,600 --> 04:49:18,366
on boarding the customer

9102
04:49:18,366 --> 04:49:19,900
but also of acquiring the customer

9103
04:49:19,966 --> 04:49:21,766
so for instance for gym launch

9104
04:49:21,900 --> 04:49:24,200
uh it was 16 weeks long

9105
04:49:24,466 --> 04:49:26,000
so for us in that business

9106
04:49:26,000 --> 04:49:28,400
I charged them each week 16 times in total

9107
04:49:28,400 --> 04:49:30,066
so that was me spreading it all the way out

9108
04:49:30,300 --> 04:49:31,933
if that still creates a problem

9109
04:49:31,933 --> 04:49:33,366
I move to step 7 now to be clear

9110
04:49:33,366 --> 04:49:35,000
I dealt with very very broke customers

9111
04:49:35,000 --> 04:49:36,366
most of your orders don't make any money

9112
04:49:36,366 --> 04:49:38,366
and so I had to I basically this was so

9113
04:49:38,366 --> 04:49:40,800
so commonly the payment plan

9114
04:49:40,800 --> 04:49:42,600
that ended up basically just having pre payment

9115
04:49:42,600 --> 04:49:44,233
financing evenly spread

9116
04:49:44,233 --> 04:49:45,800
because I just kept getting so many knows

9117
04:49:45,800 --> 04:49:47,400
all the way out you simplify it

9118
04:49:47,400 --> 04:49:49,333
and at the end of this I'll walk you through this

9119
04:49:49,333 --> 04:49:51,900
but fundamentally this is how you map

9120
04:49:51,900 --> 04:49:54,100
kind of the network of what your down

9121
04:49:54,100 --> 04:49:55,733
your down sell process will be

9122
04:49:55,733 --> 04:49:58,066
and then over time you tighten it until it's like

9123
04:49:58,066 --> 04:49:59,300
these are the highest likelihood

9124
04:49:59,300 --> 04:50:02,100
stop points that my Avatar tends to say yes to

9125
04:50:02,100 --> 04:50:04,466
so step 7 is you offer a free trial

9126
04:50:04,533 --> 04:50:07,066
now I offer free trials in a very special way

9127
04:50:07,066 --> 04:50:09,766
so I dedicate the whole next video just to doing this

9128
04:50:09,766 --> 04:50:11,766
but normally the sale ends here

9129
04:50:11,766 --> 04:50:12,266
I mean

9130
04:50:12,266 --> 04:50:14,533
you can't really get much lower than a free trial right

9131
04:50:14,533 --> 04:50:16,366
so here are some important points about payment plans

9132
04:50:16,366 --> 04:50:17,700
what I walked you through was a seven

9133
04:50:17,700 --> 04:50:20,200
step down sale process it's how I like to map these

9134
04:50:20,200 --> 04:50:22,933
now there's a different methodology of down selling

9135
04:50:22,933 --> 04:50:25,800
that's simpler to understand and less to explain

9136
04:50:25,800 --> 04:50:27,400
it's called seesaw down selling

9137
04:50:27,400 --> 04:50:31,300
I like it a lot as well it's simpler to explain

9138
04:50:31,400 --> 04:50:32,766
you can pick whichever one you want

9139
04:50:32,766 --> 04:50:34,200
and I don't like giving people options

9140
04:50:34,200 --> 04:50:35,600
cause people like being told what to do

9141
04:50:35,600 --> 04:50:37,066
but I think if you're watching this

9142
04:50:37,066 --> 04:50:37,866
and I believe in you

9143
04:50:37,866 --> 04:50:39,600
and I think that you can make the best decision

9144
04:50:39,700 --> 04:50:43,300
so instead of just asking for the full amount

9145
04:50:43,300 --> 04:50:45,666
you say would you rather have giant monthly payments

9146
04:50:45,666 --> 04:50:48,466
or tiny ones they'll say tiny

9147
04:50:48,466 --> 04:50:49,300
then you say well

9148
04:50:49,300 --> 04:50:52,966
it normally costs XXX and if you prepay today

9149
04:50:52,966 --> 04:50:55,566
then you get a huge discount and zero monthly payments

9150
04:50:55,566 --> 04:50:59,800
that work this frames the payment plan as a negative

9151
04:50:59,800 --> 04:51:01,966
and highlights the benefits of prepay

9152
04:51:02,200 --> 04:51:04,166
if they say they can't afford it

9153
04:51:04,300 --> 04:51:06,566
say the more they put down now

9154
04:51:06,566 --> 04:51:08,200
the lower their monthly payments

9155
04:51:08,200 --> 04:51:10,600
and so basically frames all of the payments as

9156
04:51:10,600 --> 04:51:12,466
we want to make those payments as low as possible

9157
04:51:12,500 --> 04:51:14,433
so put more put more down today

9158
04:51:14,500 --> 04:51:16,133
so if you can't afford it up front

9159
04:51:16,133 --> 04:51:18,100
totally get it we'll just adjust the down payment

9160
04:51:18,100 --> 04:51:20,200
until you get a monthly rate you like

9161
04:51:20,200 --> 04:51:20,766
and the thing is

9162
04:51:20,766 --> 04:51:23,300
is that most people want low monthly payments

9163
04:51:23,366 --> 04:51:25,533
and so in order to get a monthly rate they like

9164
04:51:25,533 --> 04:51:27,133
they have to put more up front

9165
04:51:27,133 --> 04:51:28,300
so the seesaw down saw

9166
04:51:28,300 --> 04:51:30,300
I call it this because you're just saying OK

9167
04:51:30,400 --> 04:51:33,133
well the more you put down or the less you put down

9168
04:51:33,133 --> 04:51:34,333
the more you have to pay overtime

9169
04:51:34,333 --> 04:51:36,766
the less you put the more the more you put down

9170
04:51:36,766 --> 04:51:37,933
the less you have to pay overtime

9171
04:51:37,933 --> 04:51:39,566
and so this incentivizes bigger down payments

9172
04:51:39,566 --> 04:51:40,666
get monthly payments lower

9173
04:51:40,666 --> 04:51:42,466
if they still say no

9174
04:51:42,500 --> 04:51:45,133
you ask if they still want the product just like before

9175
04:51:45,133 --> 04:51:45,766
if they do

9176
04:51:45,766 --> 04:51:47,400
you pull your chair to their side of the table

9177
04:51:47,400 --> 04:51:49,000
and walk them through the options

9178
04:51:49,400 --> 04:51:52,266
that's how this works that's the seesaw down saw

9179
04:51:52,266 --> 04:51:54,166
it's an alternative path that felt

9180
04:51:54,166 --> 04:51:56,266
I felt obligated to at least share with you guys

9181
04:51:56,800 --> 04:51:58,066
the thing is is I like

9182
04:51:58,066 --> 04:51:59,466
I think with larger sales teams

9183
04:51:59,466 --> 04:52:01,300
just having very clear step downs

9184
04:52:01,533 --> 04:52:04,200
sometimes seesaw down selling can get really weird

9185
04:52:04,200 --> 04:52:06,666
payment plans and so this is for bigger companies

9186
04:52:06,666 --> 04:52:08,000
if you have like a finance department

9187
04:52:08,000 --> 04:52:10,400
they might hate seesaw down selling because

9188
04:52:10,400 --> 04:52:11,700
but if you're owner operated

9189
04:52:11,700 --> 04:52:12,766
then you can

9190
04:52:12,766 --> 04:52:14,733
you can kind of work out whatever payment plans work

9191
04:52:14,733 --> 04:52:17,266
and it is a more flexible way to make payment plans

9192
04:52:17,266 --> 04:52:19,100
option payment plans happen

9193
04:52:19,366 --> 04:52:21,666
the 7 step one is more like it's ironclad

9194
04:52:21,666 --> 04:52:22,533
this is our first stop

9195
04:52:22,533 --> 04:52:24,466
this is our second stop this is our third stop

9196
04:52:24,466 --> 04:52:27,333
and then that way your your finance team can be like

9197
04:52:27,333 --> 04:52:28,966
these are the plans they're in the CRM

9198
04:52:28,966 --> 04:52:30,800
we track them accordingly whatever

9199
04:52:30,866 --> 04:52:33,266
and so it depends on the size of the business

9200
04:52:33,600 --> 04:52:36,700
seesaws smaller business more flexible stuff

9201
04:52:36,866 --> 04:52:39,966
the step downs has more scale to it in my opinion

9202
04:52:40,133 --> 04:52:42,300
alright so payment plans have built in upsells

9203
04:52:42,300 --> 04:52:44,333
so this is one of those really key

9204
04:52:44,333 --> 04:52:45,933
sexy things that a lot of people miss out on

9205
04:52:45,933 --> 04:52:47,733
and we've made a lot of money from it

9206
04:52:47,733 --> 04:52:50,266
so make periodic offers for the original paid in

9207
04:52:50,266 --> 04:52:51,833
full discount during their payment plan

9208
04:52:51,900 --> 04:52:53,833
so we give a prepayment discount

9209
04:52:53,900 --> 04:52:56,700
what you can do is also extend the timeline

9210
04:52:56,700 --> 04:52:59,733
that they can prepay and still get the discount

9211
04:52:59,733 --> 04:53:01,200
so if you're in any kind of b to B business

9212
04:53:01,200 --> 04:53:03,166
especially anything marketing or sales driven

9213
04:53:03,166 --> 04:53:04,566
if you are helping them make more money

9214
04:53:04,566 --> 04:53:04,966
in their business

9215
04:53:04,966 --> 04:53:07,266
which the vast majority of b to B businesses do

9216
04:53:07,266 --> 04:53:07,933
then you can say hey

9217
04:53:07,933 --> 04:53:10,133
no worries you might not trust us fully today

9218
04:53:10,133 --> 04:53:12,000
let's get a third down we'll get going

9219
04:53:12,000 --> 04:53:13,800
and then I'll still give you this prepayment discount

9220
04:53:13,800 --> 04:53:15,566
for the next 30 days I'll honor it

9221
04:53:15,566 --> 04:53:17,900
so then at the 2 weeks and 3 weeks point you can say

9222
04:53:17,900 --> 04:53:19,133
hey do you wanna go ahead and do that

9223
04:53:19,133 --> 04:53:21,600
hey we're about a week before the the term expires

9224
04:53:21,600 --> 04:53:21,900
do you wanna

9225
04:53:21,900 --> 04:53:23,166
go ahead and take care of the rest of the balance

9226
04:53:23,166 --> 04:53:24,233
and still get the discount

9227
04:53:24,266 --> 04:53:25,466
if you've done a decent job

9228
04:53:25,466 --> 04:53:26,300
a lot of people like yeah

9229
04:53:26,300 --> 04:53:28,100
I'll take the savings cause now they know you

9230
04:53:28,100 --> 04:53:31,366
and so we get a ton of people who take that prepayment

9231
04:53:31,366 --> 04:53:32,366
if you just extend the window

9232
04:53:32,366 --> 04:53:34,066
and you say it on the sale

9233
04:53:34,066 --> 04:53:36,466
you say it on the sale after they don't take obviously

9234
04:53:36,466 --> 04:53:37,266
the first prepayment

9235
04:53:37,266 --> 04:53:38,933
and you do that after you've already closed the card

9236
04:53:38,933 --> 04:53:40,600
you're kind of telling them what the next steps are

9237
04:53:40,866 --> 04:53:42,466
okay fewer declined payments

9238
04:53:42,566 --> 04:53:44,800
so align payment schedule with paycheck dates

9239
04:53:44,800 --> 04:53:46,133
that should seem straightforward

9240
04:53:46,133 --> 04:53:47,600
when they get paid is when you should Bill

9241
04:53:47,600 --> 04:53:48,766
that way you have fewer declines

9242
04:53:48,766 --> 04:53:50,533
fewer insufficient funds um

9243
04:53:50,533 --> 04:53:52,133
how to make sure payment plans make you money

9244
04:53:52,133 --> 04:53:53,566
so after implementing payment plans

9245
04:53:53,566 --> 04:53:54,966
if you hadn't done these before

9246
04:53:54,966 --> 04:53:56,966
your close rate should increase duh

9247
04:53:56,966 --> 04:53:58,666
but if the number of paid in fulls goes down

9248
04:53:58,666 --> 04:53:59,900
you have a problem it means you're actually getting

9249
04:53:59,900 --> 04:54:01,066
people who used to pay you in full

9250
04:54:01,066 --> 04:54:02,200
are now taking payment plans

9251
04:54:02,333 --> 04:54:05,000
so those are the big points alright

9252
04:54:05,366 --> 04:54:05,933
summary

9253
04:54:05,933 --> 04:54:07,533
payment plans let you spread the cost of your product

9254
04:54:07,533 --> 04:54:08,933
by charging some of it up front

9255
04:54:08,933 --> 04:54:10,633
and putting the rest into scheduled payments

9256
04:54:10,800 --> 04:54:13,133
payment plans get more buyers like discounts do

9257
04:54:13,133 --> 04:54:14,200
but can also boost profits

9258
04:54:14,200 --> 04:54:15,766
because they agree to pay in full price

9259
04:54:15,766 --> 04:54:17,566
over time it's kind of the best of both worlds

9260
04:54:17,733 --> 04:54:19,500
payment plans only grow your business if

9261
04:54:19,500 --> 04:54:20,733
if they get you more customers

9262
04:54:20,733 --> 04:54:22,400
and those customers actually pay

9263
04:54:22,533 --> 04:54:22,966
see saw

9264
04:54:22,966 --> 04:54:23,400
down selling

9265
04:54:23,400 --> 04:54:25,700
gradually shifts from paid in full to equal payments

9266
04:54:25,700 --> 04:54:26,866
it's a little bit more custom

9267
04:54:26,866 --> 04:54:29,266
and it's a little bit more headache on the back end

9268
04:54:29,266 --> 04:54:30,600
if you have a small business

9269
04:54:30,600 --> 04:54:31,300
you can probably handle it

9270
04:54:31,300 --> 04:54:31,966
if you have a bigger business

9271
04:54:31,966 --> 04:54:34,300
it can be kind of a pain payment plan upsells

9272
04:54:34,333 --> 04:54:35,933
they get the original discounted price

9273
04:54:35,933 --> 04:54:37,366
if they pay the balance today

9274
04:54:37,366 --> 04:54:40,266
or up to X period of time before that discount expires

9275
04:54:40,400 --> 04:54:42,000
align the payment schedules with paycheck schedules

9276
04:54:42,000 --> 04:54:43,466
and you will get fewer declined payments

9277
04:54:43,533 --> 04:54:46,166
these are the 7 steps of the down sale process

9278
04:54:46,466 --> 04:54:48,966
full price then offer a discount if they pay in full

9279
04:54:48,966 --> 04:54:50,300
step 2 third party financing

9280
04:54:50,300 --> 04:54:52,100
credit card financing and the layaway options

9281
04:54:52,200 --> 04:54:53,700
step 3 split the payment in two

9282
04:54:53,700 --> 04:54:55,166
and schedule on their paycheck dates

9283
04:54:55,300 --> 04:54:56,933
step 4 ask if they still want the product

9284
04:54:56,933 --> 04:54:58,700
this is the off ramp to a feature down sale

9285
04:54:58,700 --> 04:55:00,100
if it's 8 or above you're good to go

9286
04:55:00,100 --> 04:55:01,066
if it's below that

9287
04:55:01,066 --> 04:55:03,466
I would I would suggest switching the features around

9288
04:55:03,633 --> 04:55:05,266
step 5 split the payments into three

9289
04:55:05,266 --> 04:55:07,233
schedule their paycheck dates or monthly

9290
04:55:07,300 --> 04:55:08,800
step 6 schedule equal payments

9291
04:55:08,800 --> 04:55:09,900
over the entire duration of time

9292
04:55:09,900 --> 04:55:11,466
they're working for you step 7

9293
04:55:11,466 --> 04:55:13,600
offer free trial in exchange for putting a guard down

9294
04:55:13,600 --> 04:55:16,033
which I will cover in depth in the next video

9295
04:55:16,333 --> 04:55:18,766
two quick pro tips No. 1 if you're like

9296
04:55:18,766 --> 04:55:20,366
what do I pay sales people on a payment plan

9297
04:55:20,366 --> 04:55:23,200
I have always compensated off cash collected today

9298
04:55:23,400 --> 04:55:24,900
uh main reason for that is

9299
04:55:24,900 --> 04:55:26,066
that requires more salesmanship

9300
04:55:26,066 --> 04:55:27,700
and that aligns the interest of the salesman

9301
04:55:27,700 --> 04:55:28,566
with the interest of the business

9302
04:55:28,566 --> 04:55:29,866
which is getting paid today

9303
04:55:29,866 --> 04:55:31,666
and if someone goes on a payment plan

9304
04:55:31,666 --> 04:55:33,833
and then you do a great job and they continue to pay

9305
04:55:33,933 --> 04:55:36,666
that's more the success of the onboarding team

9306
04:55:36,666 --> 04:55:37,500
the delivery team

9307
04:55:37,500 --> 04:55:40,366
which means that you should be able to save any excess

9308
04:55:40,566 --> 04:55:41,400
commissions

9309
04:55:41,466 --> 04:55:43,400
on a payment plan for people on the back end

9310
04:55:43,400 --> 04:55:45,000
if they're the ones making sure they're getting paid

9311
04:55:45,133 --> 04:55:47,166
so that's No. 1 number two

9312
04:55:47,600 --> 04:55:49,866
if you have a recurring revenue business

9313
04:55:49,866 --> 04:55:51,066
people like how do you do payment plans

9314
04:55:51,066 --> 04:55:52,366
in a recurring revenue business

9315
04:55:52,366 --> 04:55:55,433
you simply state the annual contract as the price

9316
04:55:55,466 --> 04:55:56,866
so let's say it's $3,000 a month

9317
04:55:56,866 --> 04:55:58,066
for whatever your service is

9318
04:55:58,066 --> 04:55:58,600
you say hey

9319
04:55:58,600 --> 04:56:01,300
it's $36,000 and if you prepay for a year of service

9320
04:56:01,300 --> 04:56:03,166
you get it for 30 right if not

9321
04:56:03,166 --> 04:56:03,666
no sweat

9322
04:56:03,666 --> 04:56:05,200
and then you go into whatever your monthly payments

9323
04:56:05,200 --> 04:56:08,333
at $3,000 a month if with a a recurring service

9324
04:56:08,333 --> 04:56:10,600
you might only have two step downs instead of seven

9325
04:56:10,600 --> 04:56:11,900
because you might not have all these kind of like

9326
04:56:11,900 --> 04:56:14,600
evenly spaced things that's more for kind of up fronts

9327
04:56:14,600 --> 04:56:16,200
or defined in periods things

9328
04:56:16,200 --> 04:56:20,700
and with that being said now we go on to free trials

9329
04:56:22,666 --> 04:56:24,533
alright so we just completed payment and down sales

9330
04:56:24,533 --> 04:56:26,066
and if you get to the end of the seven steps

9331
04:56:26,066 --> 04:56:27,566
and someone's like I still don't wanna pay you

9332
04:56:27,566 --> 04:56:28,600
or I still don't have the money

9333
04:56:28,600 --> 04:56:30,966
either way you can offer a free trial

9334
04:56:30,966 --> 04:56:33,200
and I've run a lot of free trials in my life

9335
04:56:33,200 --> 04:56:34,766
and I think there's a wrong way to do them

9336
04:56:34,766 --> 04:56:35,900
and a better way to do them

9337
04:56:35,900 --> 04:56:37,366
and I will explain the better way

9338
04:56:37,366 --> 04:56:39,933
so same vibe as always

9339
04:56:39,933 --> 04:56:43,000
let's break down how I Learned this puppy so um

9340
04:56:43,000 --> 04:56:44,400
we were scaling gym launch

9341
04:56:44,400 --> 04:56:46,466
and we needed an HR platform

9342
04:56:46,566 --> 04:56:48,866
and Layla was looking at all these different platforms

9343
04:56:48,866 --> 04:56:51,266
and she ended up going with this one

9344
04:56:51,266 --> 04:56:52,266
and I was like well

9345
04:56:52,266 --> 04:56:53,200
what made you you know

9346
04:56:53,200 --> 04:56:54,466
pick that platform versus the other

9347
04:56:54,466 --> 04:56:55,166
she was like honestly

9348
04:56:55,166 --> 04:56:56,666
they were all more or less the same

9349
04:56:56,700 --> 04:57:00,000
but these guys said they charged me 500 bucks

9350
04:57:00,100 --> 04:57:03,966
and if I attended the two or three training sessions

9351
04:57:03,966 --> 04:57:06,666
they would rebate me the $500

9352
04:57:06,866 --> 04:57:08,700
but if I didn't attend the onboarding

9353
04:57:08,700 --> 04:57:10,833
training sessions they would keep it

9354
04:57:10,833 --> 04:57:13,300
and so of course I attended the sessions

9355
04:57:13,300 --> 04:57:14,700
and now I know how to use their software

9356
04:57:14,700 --> 04:57:16,300
and I don't feel like learning anyone else's

9357
04:57:16,400 --> 04:57:18,366
and so they actually got a customer

9358
04:57:18,366 --> 04:57:20,166
and we stayed with that platform for years

9359
04:57:20,166 --> 04:57:22,133
because of a really interesting way of basically

9360
04:57:22,133 --> 04:57:23,166
doing a free trial

9361
04:57:23,166 --> 04:57:26,733
now there's was they charged and then did a rebate

9362
04:57:26,733 --> 04:57:28,400
but I saw the structure and was like

9363
04:57:28,400 --> 04:57:31,466
oh this is really interesting and so I was like

9364
04:57:31,466 --> 04:57:33,366
what if we did trials like this

9365
04:57:34,133 --> 04:57:35,700
and so that's what we started doing

9366
04:57:35,800 --> 04:57:37,566
and so I called it a trial with penalty

9367
04:57:37,566 --> 04:57:39,366
that sounds ugly that's how I called it internally

9368
04:57:39,366 --> 04:57:40,600
wouldn't say that to somebody

9369
04:57:40,733 --> 04:57:42,066
but it's a trial with penalty

9370
04:57:42,066 --> 04:57:43,900
so basically a customer can try out your product

9371
04:57:43,900 --> 04:57:46,666
or service for free so long as they meet your terms

9372
04:57:46,866 --> 04:57:49,133
for comparison the win your money back offer

9373
04:57:49,133 --> 04:57:49,966
the attraction offer

9374
04:57:49,966 --> 04:57:52,133
gives customers the chance to get their money back

9375
04:57:52,133 --> 04:57:54,533
if they meet the terms in a trial with penalty offer

9376
04:57:54,533 --> 04:57:56,933
customers only pay if they don't meet the terms

9377
04:57:56,933 --> 04:57:58,200
so the win your money back

9378
04:57:58,200 --> 04:57:59,366
and the free trial with penalty

9379
04:57:59,366 --> 04:58:00,733
are virtually the same offer

9380
04:58:00,733 --> 04:58:02,700
we're just changing when they pay and how they pay

9381
04:58:02,700 --> 04:58:04,400
so they'll mirror the actions and

9382
04:58:04,400 --> 04:58:06,166
results that you used in win your money Back

9383
04:58:06,166 --> 04:58:08,566
but this time we use avoiding fees

9384
04:58:08,566 --> 04:58:09,800
rather than winning your money back

9385
04:58:09,800 --> 04:58:11,200
as the incentive for adherence

9386
04:58:11,200 --> 04:58:14,066
so they avoid penalties rather than get

9387
04:58:14,066 --> 04:58:16,466
or losing their money that they paid originally alright

9388
04:58:16,466 --> 04:58:17,900
so with a trial with penalty

9389
04:58:17,933 --> 04:58:19,300
this isn't here's my thing

9390
04:58:19,300 --> 04:58:21,533
see if you like it it's here's my thing

9391
04:58:21,533 --> 04:58:23,966
you get it for free so long as you do this stuff

9392
04:58:23,966 --> 04:58:26,566
which makes you a perfect fit for my next offer

9393
04:58:26,566 --> 04:58:28,666
and if you don't then you have to pay for it

9394
04:58:28,666 --> 04:58:30,100
so it's kind of like a win win for you

9395
04:58:30,100 --> 04:58:32,100
because if they don't do it

9396
04:58:32,166 --> 04:58:34,500
then they pay and if they do do it

9397
04:58:34,500 --> 04:58:35,766
then they're gonna be really likely to buy

9398
04:58:35,766 --> 04:58:36,666
the next thing

9399
04:58:36,666 --> 04:58:38,366
now I'm gonna give you something like wait

9400
04:58:38,366 --> 04:58:38,933
so if they don't do it

9401
04:58:38,933 --> 04:58:40,333
then they pay and they didn't want to pay originally

9402
04:58:40,333 --> 04:58:42,033
I'll cover how to get around that weirdness

9403
04:58:42,100 --> 04:58:43,533
let's say you normally close

9404
04:58:43,533 --> 04:58:45,500
three out of 10 people on your attraction offer

9405
04:58:45,500 --> 04:58:48,133
and now you down sell another four on a trial

9406
04:58:48,133 --> 04:58:51,100
with penalty then after the trial finishes

9407
04:58:51,100 --> 04:58:52,633
you upsell three of them

9408
04:58:52,666 --> 04:58:54,866
so you go from three sales to six sales

9409
04:58:54,866 --> 04:58:57,500
which doubles your customers I use this as a down sell

9410
04:58:57,500 --> 04:58:58,900
but it could also be used as a front end

9411
04:58:58,900 --> 04:59:00,533
so I don't prefer to advertise this

9412
04:59:00,533 --> 04:59:01,533
I prefer to present this

9413
04:59:01,533 --> 04:59:03,566
after someone already said no to giving me money

9414
04:59:03,566 --> 04:59:05,500
some people advertise this as how they get customers

9415
04:59:05,500 --> 04:59:06,733
it's up to you obviously

9416
04:59:06,733 --> 04:59:09,100
that HR company advertise it as how they get customers

9417
04:59:09,100 --> 04:59:10,400
so if you really want to help people

9418
04:59:10,400 --> 04:59:11,900
convincing them to put some skin in the game

9419
04:59:11,900 --> 04:59:14,166
is a great way to do it and so one of my sales rules

9420
04:59:14,166 --> 04:59:16,666
that everyone buys something who's qualified

9421
04:59:16,766 --> 04:59:18,466
and so I love that as a concept is like

9422
04:59:18,466 --> 04:59:19,600
everyone should buy

9423
04:59:19,600 --> 04:59:21,500
like if they're qualified and we have the thing

9424
04:59:21,500 --> 04:59:23,600
every person should buy the terms may change

9425
04:59:23,600 --> 04:59:25,333
but everyone should buy so

9426
04:59:25,333 --> 04:59:27,400
here's the difference between trials and penalties

9427
04:59:27,400 --> 04:59:29,366
and rebates a trial is they

9428
04:59:29,366 --> 04:59:31,200
you just get a card and then build them later

9429
04:59:31,300 --> 04:59:32,566
a penalty slash incentive is

9430
04:59:32,566 --> 04:59:33,900
you get a card and Bill later

9431
04:59:33,900 --> 04:59:34,800
and also

9432
04:59:34,800 --> 04:59:37,033
if they don't complete their activation activities

9433
04:59:37,133 --> 04:59:40,133
so the fees are associated with non consumption

9434
04:59:40,133 --> 04:59:42,500
and not showing up to other sales consultations

9435
04:59:42,733 --> 04:59:42,900
remember

9436
04:59:42,900 --> 04:59:44,700
the 4 things we had in the win your money back

9437
04:59:44,700 --> 04:59:47,066
is you wanna have them advertise your business

9438
04:59:47,066 --> 04:59:48,966
you wanna have them show up for sales consults

9439
04:59:48,966 --> 04:59:50,666
you wanna do things that um

9440
04:59:50,700 --> 04:59:54,000
that get them results and there's another one

9441
04:59:54,000 --> 04:59:54,533
I can't remember what it was

9442
04:59:54,533 --> 04:59:57,700
but there's four and those are the main ones alright

9443
04:59:57,700 --> 04:59:59,500
so you want to associate them

9444
04:59:59,500 --> 05:00:01,100
doing the things that gets them results

9445
05:00:01,100 --> 05:00:01,966
because if they get results

9446
05:00:01,966 --> 05:00:03,200
they're probably want to buy alright

9447
05:00:03,200 --> 05:00:05,700
so they're not here for a trial

9448
05:00:05,700 --> 05:00:06,800
they're here to solve a problem

9449
05:00:06,800 --> 05:00:09,300
so solve it because trials don't do anything

9450
05:00:09,666 --> 05:00:09,900
them

9451
05:00:09,900 --> 05:00:11,533
taking actions is what's gonna solve their problem

9452
05:00:11,533 --> 05:00:13,400
if someone has a problem with that

9453
05:00:13,466 --> 05:00:15,800
it's an easy thing to get around think about the logic

9454
05:00:15,900 --> 05:00:17,666
if someone says I'm not willing to commit to that

9455
05:00:17,666 --> 05:00:19,466
you're like well do you want the outcome

9456
05:00:19,866 --> 05:00:20,933
they're gonna say yes it's like well

9457
05:00:20,933 --> 05:00:22,900
you have to do this stuff to get the outcome

9458
05:00:23,000 --> 05:00:25,200
so if you don't if you don't plan on doing this stuff

9459
05:00:25,200 --> 05:00:26,966
then you're never going to get the outcome

9460
05:00:27,733 --> 05:00:29,800
this is just the easiest way that I can give you

9461
05:00:29,800 --> 05:00:31,600
all this service for free

9462
05:00:31,600 --> 05:00:33,200
if you really do wanna do this

9463
05:00:33,200 --> 05:00:34,666
I do wanna do this great

9464
05:00:34,666 --> 05:00:35,866
then you're not gonna pay anything

9465
05:00:35,866 --> 05:00:36,766
cause you're gonna follow through

9466
05:00:36,766 --> 05:00:38,866
and this just gives you added incentive to do it

9467
05:00:39,066 --> 05:00:40,333
and if this doesn't work for you

9468
05:00:40,333 --> 05:00:41,933
then certainly nothing else will

9469
05:00:41,933 --> 05:00:43,333
so let's walk through some examples

9470
05:00:43,333 --> 05:00:45,000
so I'll do a B to C version

9471
05:00:45,000 --> 05:00:46,733
so business to consumer and then I'll do a B to B

9472
05:00:46,733 --> 05:00:49,133
so let's say you do a business to consumer offer

9473
05:00:49,133 --> 05:00:50,900
a 28 day kick that habit blueprint

9474
05:00:50,900 --> 05:00:52,733
whatever right so

9475
05:00:52,733 --> 05:00:55,100
you get the trial for free and avoid the penalty fee

9476
05:00:55,166 --> 05:00:55,900
you must

9477
05:00:55,900 --> 05:00:57,666
or to get the trial for free and avoid the penalty fee

9478
05:00:57,666 --> 05:00:59,400
you must attend all your consulting calls

9479
05:00:59,566 --> 05:01:01,433
post your progress in the group once a week

9480
05:01:01,600 --> 05:01:04,166
journal daily in our app and attend feedback sessions

9481
05:01:04,166 --> 05:01:05,266
and transformation sessions

9482
05:01:05,266 --> 05:01:07,200
aka the upsell opportunities

9483
05:01:07,200 --> 05:01:08,866
business to business offer 5 day

9484
05:01:08,866 --> 05:01:11,300
get your first 5 clients challenge alright

9485
05:01:11,300 --> 05:01:13,200
to get the trial for free and avoid the penalty fee

9486
05:01:13,200 --> 05:01:15,766
you must send 100 upbound messages per day

9487
05:01:15,766 --> 05:01:17,766
report stats on the upbound messages

9488
05:01:17,766 --> 05:01:18,766
attend the daily training

9489
05:01:18,800 --> 05:01:21,100
post in the group daily once you've done the homework

9490
05:01:21,100 --> 05:01:22,266
attend your graduation call

9491
05:01:22,266 --> 05:01:23,666
which is the upsell opportunity

9492
05:01:23,666 --> 05:01:25,866
and so these look really similar to what the

9493
05:01:25,866 --> 05:01:26,733
when your money back ones were

9494
05:01:26,733 --> 05:01:28,166
because they are the same thing

9495
05:01:28,166 --> 05:01:30,000
now let's say you had a therapy business

9496
05:01:30,000 --> 05:01:32,766
so offer a free 28 day breakthrough therapy free trial

9497
05:01:32,766 --> 05:01:34,066
plus penalty you're gonna need

9498
05:01:34,200 --> 05:01:35,766
to do the homework before each session

9499
05:01:35,766 --> 05:01:37,966
and show up if you don't do the homework

9500
05:01:37,966 --> 05:01:39,533
you're not going to get the results you want

9501
05:01:39,533 --> 05:01:40,533
and if you don't show up

9502
05:01:40,533 --> 05:01:42,066
obviously you're not gonna get better

9503
05:01:42,166 --> 05:01:44,666
this will give you an added incentive to get better

9504
05:01:44,666 --> 05:01:47,100
faster so we charge a 50 dollar

9505
05:01:47,100 --> 05:01:49,066
non compliance fee for not doing the homework

9506
05:01:49,066 --> 05:01:51,466
or not doing the session if you don't do the homework

9507
05:01:51,466 --> 05:01:53,000
then we can't help you in the session

9508
05:01:53,000 --> 05:01:55,700
fair enough you should explain it how it works

9509
05:01:55,966 --> 05:01:59,733
now in this 28 day thing you can have all the fees

9510
05:01:59,733 --> 05:02:01,333
add up to the exact same amount of money

9511
05:02:01,333 --> 05:02:02,266
that you would have charged

9512
05:02:02,266 --> 05:02:02,600
in a win

9513
05:02:02,600 --> 05:02:04,600
your money back so if they have

9514
05:02:04,600 --> 05:02:05,066
call it

9515
05:02:05,066 --> 05:02:07,866
10 things they have to do over X period of time

9516
05:02:07,866 --> 05:02:09,533
and it's a 500 dollar thing

9517
05:02:09,533 --> 05:02:11,200
then you charge 50 dollars per thing

9518
05:02:11,200 --> 05:02:12,733
now if some things are more important than others

9519
05:02:12,733 --> 05:02:14,133
let's say sales consultations

9520
05:02:14,133 --> 05:02:16,666
then you can make those ones $100 or $150

9521
05:02:16,666 --> 05:02:18,066
and the other things 25

9522
05:02:18,066 --> 05:02:20,300
you wanna weight the prices based on the importance

9523
05:02:20,300 --> 05:02:22,366
for you as a business and for them getting results

9524
05:02:22,400 --> 05:02:24,300
so here's my actual

9525
05:02:24,300 --> 05:02:27,466
a step down process of how I sell free trials

9526
05:02:27,566 --> 05:02:30,466
so No. 1 is you offer the trial last

9527
05:02:30,466 --> 05:02:31,500
if someone makes it clear that they

9528
05:02:31,500 --> 05:02:32,466
don't want your first offer

9529
05:02:32,466 --> 05:02:33,733
then down sell the trial with penalty

9530
05:02:33,733 --> 05:02:35,966
so here's how it might sound hmm

9531
05:02:36,266 --> 05:02:37,600
well that sure is a pickle uh

9532
05:02:37,600 --> 05:02:38,400
I'll tell you what

9533
05:02:38,400 --> 05:02:40,400
how about we just get you started for free

9534
05:02:40,400 --> 05:02:41,666
would you be okay with that

9535
05:02:41,800 --> 05:02:43,733
great we can help you out

9536
05:02:43,733 --> 05:02:45,333
and if you like it you can stay

9537
05:02:45,333 --> 05:02:47,400
just let me get your ID and we get the process started

9538
05:02:47,400 --> 05:02:48,966
fair enough by the way

9539
05:02:48,966 --> 05:02:50,166
here's a little savage pro tip

9540
05:02:50,166 --> 05:02:50,933
if you're in person

9541
05:02:50,933 --> 05:02:52,766
or you're seeing the person via zoom

9542
05:02:52,900 --> 05:02:54,366
when you ask someone for their ID

9543
05:02:54,366 --> 05:02:55,700
they have to take their wallet out

9544
05:02:55,700 --> 05:02:56,600
when they take their wallet out

9545
05:02:56,600 --> 05:02:58,033
they can't say they forgot their wallet

9546
05:02:58,166 --> 05:02:59,966
and so now you get the card

9547
05:02:59,966 --> 05:03:00,900
they can hold it up to the camera

9548
05:03:00,900 --> 05:03:02,300
or they can give it to you in person

9549
05:03:02,366 --> 05:03:04,700
and then you take that and what I like to do is

9550
05:03:04,700 --> 05:03:06,566
I like to fill out the contract for them

9551
05:03:06,566 --> 05:03:07,766
for a number of reasons

9552
05:03:07,800 --> 05:03:09,366
one is when they fill out the contract

9553
05:03:09,366 --> 05:03:10,733
you kind of stare there like a weirdo

9554
05:03:10,733 --> 05:03:12,066
which is not fun so instead

9555
05:03:12,066 --> 05:03:13,000
you fill out the contract

9556
05:03:13,000 --> 05:03:14,700
and then you can make jokes about whatever's going on

9557
05:03:14,700 --> 05:03:15,600
you're like oh man

9558
05:03:15,600 --> 05:03:16,600
I should show you my picture

9559
05:03:16,600 --> 05:03:17,400
it's brutal oh

9560
05:03:17,400 --> 05:03:19,066
you're from Idaho originally

9561
05:03:19,066 --> 05:03:20,200
that's interesting oh

9562
05:03:20,200 --> 05:03:21,733
you know what my cousin lives out there

9563
05:03:21,733 --> 05:03:22,666
blah blah blah right

9564
05:03:22,666 --> 05:03:24,000
you're going through and you're filling this out

9565
05:03:24,000 --> 05:03:24,566
and you also

9566
05:03:24,566 --> 05:03:26,266
make sure that everything's filled out properly

9567
05:03:26,366 --> 05:03:28,300
and they didn't mess up the form whatever

9568
05:03:28,300 --> 05:03:29,866
so then the way I would do it is

9569
05:03:29,866 --> 05:03:31,400
I had the card between my fingers

9570
05:03:31,400 --> 05:03:32,000
my index fingers

9571
05:03:32,000 --> 05:03:33,700
and I would look at their wallet and I'd be like

9572
05:03:33,733 --> 05:03:35,433
I'll trade you for whatever card you wanna use

9573
05:03:35,566 --> 05:03:37,700
and I would motion towards the card

9574
05:03:37,733 --> 05:03:39,200
but I have this as collateral

9575
05:03:39,200 --> 05:03:41,166
it sounds small but these tiny things are like

9576
05:03:41,166 --> 05:03:42,700
how you facilitate sales

9577
05:03:42,866 --> 05:03:45,400
so then they would then hand me the card they wanna use

9578
05:03:45,400 --> 05:03:47,166
and then yet again I copy the card out

9579
05:03:47,166 --> 05:03:48,600
because it's very easy for someone

9580
05:03:48,600 --> 05:03:49,666
to fat finger a number

9581
05:03:49,666 --> 05:03:51,500
and then all of a sudden I can't run the card later

9582
05:03:51,566 --> 05:03:53,000
so by doing it this way

9583
05:03:53,000 --> 05:03:54,700
I made sure that the card number was correct

9584
05:03:54,700 --> 05:03:55,966
and put in the proper place

9585
05:03:55,966 --> 05:03:57,066
on the contracts that we're in

9586
05:03:57,066 --> 05:03:58,500
if you did an iPad it works the same way

9587
05:03:58,500 --> 05:03:59,700
if you do it on the phone

9588
05:03:59,700 --> 05:04:01,866
you can have them show you the card either way

9589
05:04:01,866 --> 05:04:02,200
and if you're not

9590
05:04:02,200 --> 05:04:03,966
the one who's immediately processing transactions

9591
05:04:03,966 --> 05:04:05,133
you've got a separate finance team

9592
05:04:05,133 --> 05:04:06,166
this becomes more important

9593
05:04:06,166 --> 05:04:08,200
especially if there's any delay between purchase

9594
05:04:08,200 --> 05:04:09,566
and running the transaction

9595
05:04:09,566 --> 05:04:12,100
this also avoids the I don't have the card

9596
05:04:12,100 --> 05:04:14,533
I wanna use this I don't have my wallet on me

9597
05:04:14,533 --> 05:04:16,266
it gets around all of that stuff

9598
05:04:16,266 --> 05:04:18,400
so just a pro tip alright

9599
05:04:18,400 --> 05:04:20,133
so first thing we do we offer trials

9600
05:04:20,133 --> 05:04:22,133
last that's how I'd say it always get a credit card

9601
05:04:22,133 --> 05:04:23,300
so you record their information

9602
05:04:23,300 --> 05:04:25,266
you hold on to the ID motion for the credit card

9603
05:04:25,266 --> 05:04:26,500
say what card you wanna use

9604
05:04:26,500 --> 05:04:28,700
now they have to leave a card

9605
05:04:28,700 --> 05:04:30,700
this is a key point if they balk

9606
05:04:30,700 --> 05:04:31,900
just say this is

9607
05:04:31,900 --> 05:04:34,200
this is gonna sound so ridiculous for me to say this

9608
05:04:34,566 --> 05:04:36,766
I believe it or not you know

9609
05:04:37,933 --> 05:04:39,300
failed at closing a lot of free trials

9610
05:04:39,300 --> 05:04:41,200
in the early days I had a tough time

9611
05:04:41,200 --> 05:04:43,100
people would come in for a 14 day trial

9612
05:04:43,166 --> 05:04:44,933
and I'd be like awesome

9613
05:04:44,933 --> 05:04:46,166
let's get you signed up and I'd be like

9614
05:04:46,166 --> 05:04:47,000
so what card do you wanna use

9615
05:04:47,000 --> 05:04:48,700
they're like you said it was free I was like

9616
05:04:48,966 --> 05:04:50,566
yeah and they're like well

9617
05:04:50,566 --> 05:04:52,666
I'll just I'll give you my card after the 14 days

9618
05:04:52,666 --> 05:04:55,500
and I was like I mean um

9619
05:04:56,200 --> 05:04:58,866
I okay I guess and I didn't know what to do

9620
05:04:59,100 --> 05:05:02,466
so this line came out of my mouth and then I

9621
05:05:02,766 --> 05:05:03,400
I don't wanna say

9622
05:05:03,400 --> 05:05:05,466
I literally never missed another trial again

9623
05:05:05,466 --> 05:05:06,400
but I really wanna say

9624
05:05:06,400 --> 05:05:08,233
I never missed another trial again

9625
05:05:08,266 --> 05:05:09,666
so here's how it would go

9626
05:05:10,500 --> 05:05:11,300
they would say

9627
05:05:11,300 --> 05:05:13,266
we do the whole contract and I'd be like awesome

9628
05:05:13,266 --> 05:05:14,133
what card can I put down

9629
05:05:14,133 --> 05:05:16,100
just so I can complete your account profile

9630
05:05:16,100 --> 05:05:17,500
so one is it's not to Bill it

9631
05:05:17,500 --> 05:05:19,266
it's just to complete your account profile

9632
05:05:19,500 --> 05:05:21,300
and if they balked and they were like

9633
05:05:21,300 --> 05:05:22,200
I thought this thing was free

9634
05:05:22,200 --> 05:05:22,866
I'm like oh

9635
05:05:22,866 --> 05:05:25,633
100% it is this is how we've always done it

9636
05:05:26,100 --> 05:05:27,666
and by appealing to authority

9637
05:05:27,666 --> 05:05:30,300
this hypothetical person who makes policy and rules

9638
05:05:30,300 --> 05:05:33,200
everyone just says okay and they just hand it to you

9639
05:05:33,200 --> 05:05:35,533
I have no idea why it works

9640
05:05:35,533 --> 05:05:37,566
I just know that it works and say

9641
05:05:37,566 --> 05:05:38,766
this is how he's always done it

9642
05:05:38,766 --> 05:05:40,466
that's it you just shrug and you say

9643
05:05:40,533 --> 05:05:41,333
that's how I've always done it

9644
05:05:41,333 --> 05:05:43,466
always sell staying and paying

9645
05:05:43,466 --> 05:05:45,066
so remember at this point

9646
05:05:45,066 --> 05:05:47,166
it's actually a take away sale for you now

9647
05:05:47,166 --> 05:05:48,600
so they've agreed they basically

9648
05:05:48,600 --> 05:05:50,066
you try to sell them and you're at the end

9649
05:05:50,066 --> 05:05:51,166
and they're like there

9650
05:05:51,166 --> 05:05:52,966
it feels like they're like not as interested

9651
05:05:53,100 --> 05:05:55,500
now you have to remember the leverage shifts

9652
05:05:55,500 --> 05:05:58,433
because now you're giving them stuff for free

9653
05:05:58,500 --> 05:06:01,533
they have to prove why they're deserve to get it

9654
05:06:01,533 --> 05:06:03,366
after you said they had to pay for it

9655
05:06:03,366 --> 05:06:04,166
so you say listen

9656
05:06:04,166 --> 05:06:07,300
I'm only gonna do this and extend this honor to you

9657
05:06:07,300 --> 05:06:10,533
of me working for free to help you get this thing

9658
05:06:10,533 --> 05:06:12,900
if you do some things for me alright

9659
05:06:12,900 --> 05:06:14,400
so you ask directly

9660
05:06:14,400 --> 05:06:16,566
so if this program got you the result

9661
05:06:16,566 --> 05:06:19,300
will you stay long term if the person says no

9662
05:06:19,300 --> 05:06:20,866
fuck it the whole point of the trial

9663
05:06:20,866 --> 05:06:21,533
the whole point of the thing

9664
05:06:21,533 --> 05:06:22,500
is to get them as a customer

9665
05:06:22,500 --> 05:06:24,400
if they're not interested in that fine

9666
05:06:24,533 --> 05:06:26,200
now if you advertise a free trial

9667
05:06:26,200 --> 05:06:27,700
then you need to offer whatever you advertise

9668
05:06:27,700 --> 05:06:29,666
but the way I said remember I use it last

9669
05:06:29,666 --> 05:06:30,600
it's not what I advertise

9670
05:06:30,600 --> 05:06:32,366
I offer it under terms

9671
05:06:32,500 --> 05:06:34,566
and so you don't want them to begin with

9672
05:06:34,566 --> 05:06:35,900
if they don't agree to stay long term

9673
05:06:35,900 --> 05:06:36,966
and the reason I asked that is

9674
05:06:36,966 --> 05:06:38,400
I don't want you to try it

9675
05:06:38,400 --> 05:06:41,133
I want you to get results and out of integrity

9676
05:06:41,133 --> 05:06:42,600
I wanna set realistic goals

9677
05:06:42,700 --> 05:06:44,766
you're not gonna hit your long term goals

9678
05:06:44,766 --> 05:06:47,600
during this trial just to be really perfectly clear

9679
05:06:47,700 --> 05:06:49,133
but you will establish habits

9680
05:06:49,133 --> 05:06:50,700
that will help you get there

9681
05:06:50,700 --> 05:06:53,433
and we're gonna help you do that for free

9682
05:06:53,700 --> 05:06:55,766
but if you want to get your long term results

9683
05:06:55,766 --> 05:06:57,333
you're going to have to stay on after

9684
05:06:57,333 --> 05:06:58,366
I just want to make sure that

9685
05:06:58,366 --> 05:07:00,400
you're not looking for some sort of quick fix

9686
05:07:00,900 --> 05:07:01,966
when you say it like that

9687
05:07:01,966 --> 05:07:04,066
people are like got it you're like because listen

9688
05:07:04,066 --> 05:07:06,000
I can't ethically promise you that

9689
05:07:06,100 --> 05:07:07,166
and as soon as you say that

9690
05:07:07,166 --> 05:07:08,333
you now have the moral high ground

9691
05:07:08,333 --> 05:07:09,666
they can't say shit to you alright

9692
05:07:09,666 --> 05:07:12,066
and so that's how you sell staying and paying

9693
05:07:12,066 --> 05:07:13,466
so now that you've said OK

9694
05:07:13,466 --> 05:07:15,000
I'll do it for free everyone's like OK

9695
05:07:15,000 --> 05:07:16,166
sure sure sure I'll do it for free and you're like

9696
05:07:16,166 --> 05:07:17,833
no no no not so fast Susan

9697
05:07:18,300 --> 05:07:21,066
if you get the result you staying OK

9698
05:07:21,133 --> 05:07:22,400
do you think you're gonna accomplish this

9699
05:07:22,400 --> 05:07:23,600
in the time period you're gonna

9700
05:07:23,600 --> 05:07:25,733
get progress you're not gonna get to your goal

9701
05:07:25,733 --> 05:07:27,600
I wanna set that expectation up front

9702
05:07:27,600 --> 05:07:29,266
so as long as you're comfortable with this

9703
05:07:29,266 --> 05:07:30,500
I'm happy to give this little

9704
05:07:30,500 --> 05:07:32,700
this little test run this kick start for you

9705
05:07:32,700 --> 05:07:34,666
but I'm only in this for the long term Susan

9706
05:07:34,666 --> 05:07:36,366
I think and I wanna ask you directly

9707
05:07:36,366 --> 05:07:38,000
are you in this for the long term

9708
05:07:38,166 --> 05:07:39,133
they say yes you're in

9709
05:07:39,133 --> 05:07:41,966
you have now sold the idea of them staying long term

9710
05:07:41,966 --> 05:07:44,366
if you can't sell that for free one

9711
05:07:44,366 --> 05:07:45,566
you need to work on work on sales

9712
05:07:45,566 --> 05:07:47,866
but they also might just not be a good prospect step 4

9713
05:07:47,866 --> 05:07:49,366
so now you sell consumption commitment

9714
05:07:49,366 --> 05:07:52,266
so explain the fees after getting the card very key

9715
05:07:52,366 --> 05:07:54,133
so at this point in the sale right

9716
05:07:54,133 --> 05:07:55,133
we've we said cool

9717
05:07:55,133 --> 05:07:56,900
let's get the trial started I have your ID

9718
05:07:56,900 --> 05:07:58,100
let's get the card sign it

9719
05:07:58,100 --> 05:08:01,266
you stay you sell the idea of staying long term awesome

9720
05:08:01,466 --> 05:08:03,300
now once we have the card

9721
05:08:03,300 --> 05:08:04,900
we have the payment information

9722
05:08:04,966 --> 05:08:07,133
now we basically get agreement on terms

9723
05:08:07,133 --> 05:08:09,100
it's much easier to get agreement on terms

9724
05:08:09,166 --> 05:08:12,100
post getting purchasing method rather than pre

9725
05:08:12,133 --> 05:08:13,266
I'm just giving you guys this

9726
05:08:13,266 --> 05:08:14,333
off of years of experience

9727
05:08:14,333 --> 05:08:16,133
just use it if you want alright

9728
05:08:16,133 --> 05:08:18,733
so I say something like this I say listen

9729
05:08:18,733 --> 05:08:20,600
so we're gonna do our part as long as you do yours

9730
05:08:20,733 --> 05:08:22,333
and that's that's fair right

9731
05:08:22,333 --> 05:08:22,966
okay cool

9732
05:08:22,966 --> 05:08:24,800
so now I just ask that you bet

9733
05:08:24,800 --> 05:08:27,566
on yourself so if you miss or skip any stuff

9734
05:08:27,566 --> 05:08:28,766
your results are gonna suffer

9735
05:08:28,766 --> 05:08:31,766
so we charge to keep you on track if you miss

9736
05:08:31,766 --> 05:08:33,900
no big deal you'll get dinged a little bit

9737
05:08:33,900 --> 05:08:35,866
but but it's not gonna get you off track

9738
05:08:35,866 --> 05:08:37,700
it'll get you back on track with that little

9739
05:08:37,700 --> 05:08:38,800
that little ding alright

9740
05:08:38,800 --> 05:08:40,466
so if you follow through you're gonna

9741
05:08:40,466 --> 05:08:42,500
get all of this stuff that I told you earlier

9742
05:08:42,500 --> 05:08:43,466
for free so

9743
05:08:43,466 --> 05:08:44,866
this is the best way

9744
05:08:44,866 --> 05:08:46,500
that we can get you amazing results

9745
05:08:46,500 --> 05:08:47,800
and keep it free for you

9746
05:08:47,800 --> 05:08:49,166
so it's the best of both worlds

9747
05:08:49,166 --> 05:08:52,500
now that last line I used more times than I can count

9748
05:08:52,500 --> 05:08:52,900
which is

9749
05:08:52,900 --> 05:08:54,566
this is the best way that I can get your results

9750
05:08:54,566 --> 05:08:56,766
and still keep it free it's the best of both worlds

9751
05:08:56,766 --> 05:08:59,066
I'd say that a lot of times it works

9752
05:08:59,300 --> 05:09:02,200
note if you explain the fees before you get the card

9753
05:09:02,200 --> 05:09:04,500
you'll get way more resistance and way more like

9754
05:09:04,500 --> 05:09:06,133
what about this and why is this this

9755
05:09:06,133 --> 05:09:08,500
if you explain it afterwards with the same like

9756
05:09:08,500 --> 05:09:10,366
this is just how we've always done it attitude

9757
05:09:10,366 --> 05:09:12,200
people will agree

9758
05:09:12,200 --> 05:09:14,700
or they'll tend to agree at far higher likelihood

9759
05:09:14,700 --> 05:09:16,000
and the last point that I'll make is that

9760
05:09:16,000 --> 05:09:17,533
I always have them initial

9761
05:09:17,533 --> 05:09:19,666
next to each fee they're agreeing to

9762
05:09:19,666 --> 05:09:20,700
and so again

9763
05:09:20,700 --> 05:09:22,200
you don't want to have like 19 sets of fees

9764
05:09:22,200 --> 05:09:23,933
you want to have as few things as are

9765
05:09:23,933 --> 05:09:24,866
that are important to you

9766
05:09:24,866 --> 05:09:26,566
so it'll usually be the sales consults

9767
05:09:26,566 --> 05:09:27,500
they have to attend

9768
05:09:27,533 --> 05:09:30,533
whatever the key metric for them getting results are

9769
05:09:30,533 --> 05:09:32,466
and maybe them doing some advertising for you

9770
05:09:32,466 --> 05:09:33,766
cause remember you're doing this for free

9771
05:09:33,766 --> 05:09:35,466
so they might as well do some advertising for you

9772
05:09:35,466 --> 05:09:36,066
they gotta post

9773
05:09:36,066 --> 05:09:38,266
they gotta you know give you a testimonial at the end

9774
05:09:38,266 --> 05:09:40,800
whatever so they have to agree to doing those things

9775
05:09:40,800 --> 05:09:42,333
if you're gonna give a free trial

9776
05:09:42,333 --> 05:09:44,166
get some stuff for it that's the whole point of this

9777
05:09:44,166 --> 05:09:44,866
if you're gonna give

9778
05:09:44,866 --> 05:09:48,400
you should get so that step 4 is that we get the card

9779
05:09:48,400 --> 05:09:49,366
then we explain the terms

9780
05:09:49,366 --> 05:09:50,133
then we have them initial

9781
05:09:50,133 --> 05:09:51,500
next to all the fees that are associated

9782
05:09:51,500 --> 05:09:52,700
we explain why we have the fees

9783
05:09:52,700 --> 05:09:53,966
which is for their benefit

9784
05:09:54,233 --> 05:09:55,566
it's the only way we could still

9785
05:09:55,566 --> 05:09:57,566
ethically tell you that we could help you get results

9786
05:09:57,566 --> 05:09:58,266
and keep it free

9787
05:09:58,266 --> 05:10:00,600
that we get the best of both worlds done great

9788
05:10:00,600 --> 05:10:04,500
so now uh I like making the check ins required

9789
05:10:04,500 --> 05:10:06,633
that's basically just an explanation of the fees

9790
05:10:06,733 --> 05:10:08,166
so I would say alright

9791
05:10:08,166 --> 05:10:08,600
uh yep

9792
05:10:08,600 --> 05:10:10,466
and you agree to attend each of these three check ins

9793
05:10:10,466 --> 05:10:12,600
the first first time we do X so that you can

9794
05:10:12,600 --> 05:10:14,466
the second time we do y so that you can

9795
05:10:14,466 --> 05:10:16,666
the third time we do Z so that you can obviously

9796
05:10:16,700 --> 05:10:17,733
we charge if you miss these three

9797
05:10:17,733 --> 05:10:19,333
cause it's the only way we can get your results

9798
05:10:19,333 --> 05:10:21,066
so this is me explaining how

9799
05:10:21,066 --> 05:10:23,300
I would explain each of the kind of clauses

9800
05:10:23,300 --> 05:10:25,100
that I'm initial having them initial next to

9801
05:10:25,266 --> 05:10:27,300
so this would be like the sales consults

9802
05:10:27,300 --> 05:10:29,266
now again I'm not gonna call them sales consults

9803
05:10:29,266 --> 05:10:29,733
I'd say hey

9804
05:10:29,733 --> 05:10:31,800
you gotta attend nutrition so that we can fix your food

9805
05:10:31,800 --> 05:10:33,400
you gotta attend the the progress meeting

9806
05:10:33,400 --> 05:10:34,566
so that we can adjust the

9807
05:10:34,566 --> 05:10:36,066
nutrition to keep the results coming

9808
05:10:36,066 --> 05:10:37,466
and you gotta attend the transformation meeting

9809
05:10:37,466 --> 05:10:39,133
at the end so we can get your after pictures

9810
05:10:39,133 --> 05:10:41,166
that should make sense right yes OK

9811
05:10:41,166 --> 05:10:42,333
cool done right

9812
05:10:42,333 --> 05:10:44,500
this is like there's not a lot to object to there

9813
05:10:44,500 --> 05:10:45,366
the question is okay well

9814
05:10:45,366 --> 05:10:46,766
how do trials make me money

9815
05:10:46,766 --> 05:10:48,533
so this is how I upsell from a trial

9816
05:10:48,533 --> 05:10:49,300
but everything I just said

9817
05:10:49,300 --> 05:10:49,600
went through

9818
05:10:49,600 --> 05:10:52,466
is how my step by step process for selling a trial

9819
05:10:52,466 --> 05:10:54,766
with penalty which will get you far more customers

9820
05:10:54,766 --> 05:10:57,000
and long term commitment then

9821
05:10:57,000 --> 05:10:58,333
just telling someone to put a card

9822
05:10:58,333 --> 05:11:01,000
and wish for the best so when someone takes a trial

9823
05:11:01,000 --> 05:11:02,466
one of three things happen

9824
05:11:02,466 --> 05:11:04,166
they like it they hate it or they don't use it

9825
05:11:04,166 --> 05:11:06,200
so here's how I upsell in each of those scenarios

9826
05:11:06,266 --> 05:11:08,266
so if they like it this is the easy one

9827
05:11:08,266 --> 05:11:09,966
you already set them up for automatic billing

9828
05:11:09,966 --> 05:11:11,200
cause it's a trial great

9829
05:11:11,200 --> 05:11:12,533
so meet with them anyways

9830
05:11:12,533 --> 05:11:13,566
during the transformation meeting

9831
05:11:13,566 --> 05:11:14,866
whatever meeting you wanna have close to the

9832
05:11:14,866 --> 05:11:15,966
middle or close to the end

9833
05:11:15,966 --> 05:11:17,666
and you still offer the the longer term

9834
05:11:17,666 --> 05:11:18,966
or higher value version of your service

9835
05:11:18,966 --> 05:11:20,100
or both alright

9836
05:11:20,100 --> 05:11:21,200
so again

9837
05:11:21,200 --> 05:11:22,900
they just didn't trust you enough in the beginning

9838
05:11:23,200 --> 05:11:24,666
let's say you have three sales consultations

9839
05:11:24,666 --> 05:11:25,366
you sell different stuff

9840
05:11:25,366 --> 05:11:26,966
or have potentials for upgrades

9841
05:11:27,133 --> 05:11:28,100
at the first and the second

9842
05:11:28,100 --> 05:11:29,533
you should still absolutely pitch the next thing

9843
05:11:29,533 --> 05:11:30,966
cause now they're in they've had a taste

9844
05:11:31,066 --> 05:11:33,733
the the whole dynamic has completely shifted alright

9845
05:11:33,733 --> 05:11:34,000
and so

9846
05:11:34,000 --> 05:11:37,566
successful customers tend to get even more value um

9847
05:11:37,866 --> 05:11:39,733
out of your better and more profitable stuff

9848
05:11:39,733 --> 05:11:42,266
so it's ethical for you to make the offer to them

9849
05:11:42,366 --> 05:11:43,666
if you can help help

9850
05:11:44,066 --> 05:11:46,933
now let's say they hate it turn the frown upside down

9851
05:11:46,933 --> 05:11:49,233
so ask them what they would have liked to be different

9852
05:11:49,533 --> 05:11:51,300
tell them they're totally right

9853
05:11:51,300 --> 05:11:54,033
and that you're angry at yourself for missing this

9854
05:11:54,100 --> 05:11:55,366
do not blame them

9855
05:11:55,366 --> 05:11:58,166
only one person can be angry and it needs to be you

9856
05:11:58,466 --> 05:12:00,766
ask if they'll give you a chance to make it up to them

9857
05:12:00,766 --> 05:12:02,200
because of how outraged you are

9858
05:12:02,200 --> 05:12:03,666
at their terrible experience

9859
05:12:03,866 --> 05:12:06,166
and now since you better understand their needs

9860
05:12:06,166 --> 05:12:07,700
that they're a better fit for your new

9861
05:12:07,700 --> 05:12:10,566
higher level thing then offer them that yes

9862
05:12:10,566 --> 05:12:12,700
this is a sale and yes

9863
05:12:12,700 --> 05:12:15,200
about half of people believe it or not buy this

9864
05:12:15,200 --> 05:12:16,533
they come in for this free trial

9865
05:12:16,533 --> 05:12:18,100
they wanted more everything

9866
05:12:18,100 --> 05:12:20,000
whatever and you say that's on me

9867
05:12:20,000 --> 05:12:20,533
I suck

9868
05:12:20,533 --> 05:12:22,800
I'm so pissed for you that should never have happened

9869
05:12:23,100 --> 05:12:24,800
I should have offered you this

9870
05:12:24,800 --> 05:12:26,133
and that's cause I didn't listen

9871
05:12:26,133 --> 05:12:27,366
and I should have listened better

9872
05:12:27,366 --> 05:12:29,400
so let me make it up to you huh

9873
05:12:29,566 --> 05:12:32,400
sell this thing now let's say they didn't use it

9874
05:12:32,400 --> 05:12:34,366
you reach out to people multiple times

9875
05:12:34,366 --> 05:12:36,166
before you get to this point ideally

9876
05:12:36,200 --> 05:12:37,533
but when you do that

9877
05:12:37,533 --> 05:12:39,066
you explain that you need to meet with them

9878
05:12:39,066 --> 05:12:40,933
you offer to wave the fees cause remember

9879
05:12:40,933 --> 05:12:42,466
they signed they were gonna do stuff

9880
05:12:42,533 --> 05:12:45,500
I don't want the 50 dollar fees don't care at all

9881
05:12:45,500 --> 05:12:46,800
I do that just to hold them accountable

9882
05:12:46,800 --> 05:12:48,233
and I tell them that

9883
05:12:48,366 --> 05:12:50,666
I offer to waive the fee if they get back on track

9884
05:12:50,766 --> 05:12:53,566
right so now you can get them back on track or again

9885
05:12:53,566 --> 05:12:56,466
offer something better so I say me personally

9886
05:12:56,466 --> 05:12:57,766
I don't like billing non starters

9887
05:12:57,766 --> 05:12:59,800
cause it's like a great way to get 1 star reviews

9888
05:12:59,900 --> 05:13:02,000
I prefer not to have great ways to get 1 star reviews

9889
05:13:02,066 --> 05:13:03,566
and a small fee isn't worth that

9890
05:13:03,566 --> 05:13:05,133
but it's your choice it's up to you

9891
05:13:05,133 --> 05:13:07,566
so I personally just use the fees

9892
05:13:07,566 --> 05:13:09,366
as leverage to get them back in

9893
05:13:09,366 --> 05:13:10,900
because that's where I'm gonna get the long term

9894
05:13:10,900 --> 05:13:12,833
lifetime value a couple other tidbits

9895
05:13:12,900 --> 05:13:14,966
so to tweak tweak your trial to get the most customers

9896
05:13:14,966 --> 05:13:16,166
if no one takes your trial

9897
05:13:16,166 --> 05:13:17,800
lower the requirements or the priorities

9898
05:13:17,800 --> 05:13:19,766
if people take your trial but don't follow through

9899
05:13:19,766 --> 05:13:22,400
emphasize explaining how the fees help them

9900
05:13:22,400 --> 05:13:24,966
and make sure that you include meetings as mandatory

9901
05:13:24,966 --> 05:13:25,733
like you have to highlight

9902
05:13:25,733 --> 05:13:27,000
that's why I have the little separate lines

9903
05:13:27,000 --> 05:13:29,166
from the two initial and I walk through it with them

9904
05:13:29,166 --> 05:13:30,933
don't let them read it explain each one

9905
05:13:30,933 --> 05:13:32,900
get them to nod then initial alright

9906
05:13:32,900 --> 05:13:34,733
if people don't stay on the back end

9907
05:13:34,733 --> 05:13:36,766
better emphasize the value of staying and paying

9908
05:13:36,766 --> 05:13:38,133
that's the early part where I said hey

9909
05:13:38,133 --> 05:13:39,100
if we get you the results

9910
05:13:39,100 --> 05:13:42,333
would you stay we added that back in to our scripting

9911
05:13:42,333 --> 05:13:43,966
when I saw my guys weren't doing it

9912
05:13:43,966 --> 05:13:45,466
and we weren't getting as many ascensions

9913
05:13:45,466 --> 05:13:46,366
we added it back in

9914
05:13:46,366 --> 05:13:48,000
and then way more trials started ascending

9915
05:13:48,000 --> 05:13:49,200
let people make up for goofs

9916
05:13:49,200 --> 05:13:52,433
so people often get discouraged after getting build

9917
05:13:52,500 --> 05:13:54,966
but you can offer the opportunity to make it up

9918
05:13:54,966 --> 05:13:55,200
so

9919
05:13:55,200 --> 05:13:57,466
this does a great job of getting people back on track

9920
05:13:57,466 --> 05:13:58,533
and converting

9921
05:13:58,533 --> 05:14:01,200
but if they miss that you're justified in billing them

9922
05:14:01,200 --> 05:14:03,933
so I don't see like if you they miss something

9923
05:14:03,933 --> 05:14:05,566
you reach out you reach out again

9924
05:14:05,566 --> 05:14:06,300
you say hey

9925
05:14:06,300 --> 05:14:07,100
I'll make it you know

9926
05:14:07,100 --> 05:14:08,100
I'll wave it

9927
05:14:08,100 --> 05:14:10,433
just come back in if they miss the next one

9928
05:14:11,600 --> 05:14:13,300
it's up to you I usually don't

9929
05:14:13,300 --> 05:14:15,400
but that I think that is a completely

9930
05:14:15,400 --> 05:14:17,166
you're completely justified in building at that point

9931
05:14:17,166 --> 05:14:19,300
in terms of naming just call it a trial

9932
05:14:19,300 --> 05:14:20,966
just say we do it in a special way

9933
05:14:21,166 --> 05:14:23,300
and the way we do it gets people results rather than

9934
05:14:23,300 --> 05:14:25,266
than not results that's pretty much it

9935
05:14:25,266 --> 05:14:25,733
so even though

9936
05:14:25,733 --> 05:14:27,600
the trial with penalty has some special features

9937
05:14:27,600 --> 05:14:28,866
you should just call it a trial

9938
05:14:29,066 --> 05:14:31,966
um otherwise people may get scared or confused

9939
05:14:31,966 --> 05:14:33,600
and no one wants to be penalized alright

9940
05:14:33,600 --> 05:14:35,766
and if they ask you why you do free trials this way

9941
05:14:35,766 --> 05:14:38,200
just reply with that's how we've always done it

9942
05:14:38,266 --> 05:14:39,466
pay less now uh

9943
05:14:39,466 --> 05:14:41,533
or pay more later versus trial with penalty

9944
05:14:41,533 --> 05:14:43,100
so I use pay less now

9945
05:14:43,100 --> 05:14:45,866
or pay more later as a down sell for physical products

9946
05:14:45,866 --> 05:14:47,233
or one time services

9947
05:14:47,333 --> 05:14:49,366
I use trial with penalty as a down sell

9948
05:14:49,366 --> 05:14:51,100
for recurring products or services

9949
05:14:51,266 --> 05:14:53,500
also I've only made this work in businesses

9950
05:14:53,500 --> 05:14:55,766
where the customer has to do work to get results

9951
05:14:55,766 --> 05:14:57,400
so if you find other types of businesses

9952
05:14:57,400 --> 05:14:58,200
that this works for

9953
05:14:58,200 --> 05:14:59,800
these trials where they don't have to do anything

9954
05:14:59,900 --> 05:15:01,133
let me know for the most part though

9955
05:15:01,133 --> 05:15:03,400
it's usually when somebody has to do something

9956
05:15:03,533 --> 05:15:04,800
often times like software

9957
05:15:04,800 --> 05:15:05,733
usually have to do a lot of stuff

9958
05:15:05,733 --> 05:15:07,600
in the software services it's common

9959
05:15:07,600 --> 05:15:09,200
for customers to have to do a bunch of stuff

9960
05:15:09,766 --> 05:15:11,300
that's more that's more normal

9961
05:15:11,933 --> 05:15:14,100
discounts uh get card on file

9962
05:15:14,100 --> 05:15:16,866
so some people get weird when you offer free stuff

9963
05:15:16,866 --> 05:15:18,000
and then ask for a card

9964
05:15:18,000 --> 05:15:19,400
and if you have a super low price

9965
05:15:19,400 --> 05:15:21,700
it justifies the card so a small price uh

9966
05:15:21,700 --> 05:15:23,066
means the card will probably work

9967
05:15:23,066 --> 05:15:24,700
when automatic payments start

9968
05:15:24,733 --> 05:15:25,900
so instead of a free month

9969
05:15:25,900 --> 05:15:27,333
you might offer a first month for

9970
05:15:27,333 --> 05:15:28,566
a first month for $1

9971
05:15:28,566 --> 05:15:30,400
or then X dollars per month when it recurs

9972
05:15:30,400 --> 05:15:31,066
and so if you want

9973
05:15:31,066 --> 05:15:33,466
you can offer for a buck a dollar down $10 down

9974
05:15:33,466 --> 05:15:34,700
whatever um

9975
05:15:34,700 --> 05:15:36,466
if you have a hard time with it

9976
05:15:36,566 --> 05:15:37,066
anybody

9977
05:15:37,066 --> 05:15:39,533
who has any acumen in sales should never have an issue

9978
05:15:39,533 --> 05:15:41,066
closing a free trial with a card

9979
05:15:41,066 --> 05:15:43,133
personally rebates are a little tougher uh

9980
05:15:43,133 --> 05:15:44,200
but they work the same way

9981
05:15:44,200 --> 05:15:45,766
you just get them to pay up front

9982
05:15:45,833 --> 05:15:48,733
so I consider rebates similar to when your money back

9983
05:15:48,733 --> 05:15:51,700
but usually for smaller like smaller in scope

9984
05:15:51,700 --> 05:15:54,133
so just get them to do the thing you need them to do

9985
05:15:54,133 --> 05:15:54,933
and then they get the rebate

9986
05:15:54,933 --> 05:15:55,866
so that was kind of like the

9987
05:15:55,866 --> 05:15:57,500
the story that I gave with uh Layla

9988
05:15:57,500 --> 05:15:59,266
so she paid you know 500 bucks

9989
05:15:59,266 --> 05:16:01,233
she had to attend two webinars or three webinars

9990
05:16:01,300 --> 05:16:04,266
very clear very small very straight forward

9991
05:16:04,266 --> 05:16:05,966
that's where rebates are kind of nice

9992
05:16:06,066 --> 05:16:07,400
um rather than

9993
05:16:07,400 --> 05:16:08,933
you know billing because the thing is the rebate

9994
05:16:08,933 --> 05:16:10,400
you know the card works because you

9995
05:16:10,400 --> 05:16:12,166
they paid for it and they get it rebated

9996
05:16:12,166 --> 05:16:13,733
which is basically a rollover

9997
05:16:13,733 --> 05:16:14,933
onto their service afterwards

9998
05:16:14,933 --> 05:16:17,633
so those are the important points quick summary

9999
05:16:17,733 --> 05:16:19,166
in a trial with penalty offer

10000
05:16:19,166 --> 05:16:21,166
customers can try your product or service for free

10001
05:16:21,166 --> 05:16:22,766
so long as they meet your terms

10002
05:16:22,933 --> 05:16:24,533
trial with penalty down sell offers

10003
05:16:24,533 --> 05:16:27,600
get yeses from people who would have said no to do them

10004
05:16:27,600 --> 05:16:28,866
you get the card get the commitment

10005
05:16:28,866 --> 05:16:30,933
explain why they have to do it to get the results

10006
05:16:30,933 --> 05:16:31,866
the meetings they have to attend

10007
05:16:31,866 --> 05:16:33,500
and what happens if they don't do it

10008
05:16:33,500 --> 05:16:36,700
and use the same refund criteria from your

10009
05:16:36,700 --> 05:16:38,700
win your money back the attraction offer No. 1

10010
05:16:38,700 --> 05:16:40,266
to create your trial with penalty criteria

10011
05:16:40,266 --> 05:16:41,700
this way at the end of the trial

10012
05:16:41,700 --> 05:16:43,600
they've done the stuff that makes a great

10013
05:16:43,600 --> 05:16:44,833
long term customer

10014
05:16:45,000 --> 05:16:46,733
and they advertise your business for you

10015
05:16:46,733 --> 05:16:47,300
break up fees

10016
05:16:47,300 --> 05:16:50,266
you can charge by criteria or you can charge a lump fee

10017
05:16:50,266 --> 05:16:51,700
I like breaking them up so

10018
05:16:51,700 --> 05:16:52,333
you can either say

10019
05:16:52,333 --> 05:16:53,966
it's $50 for each of these occurrences

10020
05:16:53,966 --> 05:16:56,600
or you can just say if you mess up any of these

10021
05:16:56,600 --> 05:16:57,833
you pay the full boat

10022
05:16:57,866 --> 05:17:00,666
I prefer the small dings because then people are like

10023
05:17:00,666 --> 05:17:01,300
oh I missed one

10024
05:17:01,300 --> 05:17:02,600
now I shouldn't even try right

10025
05:17:02,600 --> 05:17:03,300
I don't like that

10026
05:17:03,300 --> 05:17:04,900
you make money by getting people results

10027
05:17:04,900 --> 05:17:05,866
and turning them into customers

10028
05:17:05,866 --> 05:17:07,433
not nickel and dying them with fees

10029
05:17:07,566 --> 05:17:08,666
my personal opinion

10030
05:17:08,800 --> 05:17:11,800
so use mid trial check ins to make more offers

10031
05:17:11,800 --> 05:17:13,800
if they love it give them more of what they love

10032
05:17:13,800 --> 05:17:14,866
if they have problems

10033
05:17:14,933 --> 05:17:16,266
swap it for what makes sense for them

10034
05:17:16,266 --> 05:17:17,433
if they aren't using it

10035
05:17:17,433 --> 05:17:19,533
offer the ability to make it up to avoid the fees

10036
05:17:19,533 --> 05:17:20,933
this style of trial converts

10037
05:17:20,933 --> 05:17:23,600
as much or much higher percentage on the back end

10038
05:17:23,600 --> 05:17:25,900
which is why I do them it retains goodwill

10039
05:17:25,900 --> 05:17:27,533
because you actually look like you're trying to help

10040
05:17:27,533 --> 05:17:28,466
which you are

10041
05:17:28,466 --> 05:17:30,366
and you get agreement before explaining the fees

10042
05:17:30,366 --> 05:17:32,466
just as a quick reminder cause it's super important

10043
05:17:32,500 --> 05:17:34,933
and you can always do a normal trial as a down

10044
05:17:34,933 --> 05:17:36,133
down sell and remove that

10045
05:17:36,133 --> 05:17:38,200
but at that point I don't think that person really is

10046
05:17:38,200 --> 05:17:40,000
they're just trying to leave um

10047
05:17:40,000 --> 05:17:41,766
and remember everyone buy something

10048
05:17:43,333 --> 05:17:44,366
that's free trials

10049
05:17:46,333 --> 05:17:49,466
so we just covered payment plans and free trials

10050
05:17:49,466 --> 05:17:51,066
or trial with penalties whatever you want to say it

10051
05:17:51,066 --> 05:17:51,500
now

10052
05:17:51,500 --> 05:17:54,166
we have the third and final of the down sell offers

10053
05:17:54,166 --> 05:17:56,666
which I like to call feature down sells

10054
05:17:56,666 --> 05:17:59,500
let's begin the same 5 how I Learned description

10055
05:17:59,500 --> 05:18:01,233
examples important points and summary

10056
05:18:01,300 --> 05:18:04,800
look how clean this drawing looks so nice okay

10057
05:18:04,800 --> 05:18:07,566
so fundamentally you wanna buy the thing no

10058
05:18:07,566 --> 05:18:09,500
it's too much I remove some features I say

10059
05:18:09,500 --> 05:18:12,400
how about now that's how this works alright

10060
05:18:12,400 --> 05:18:13,500
so how I Learned it

10061
05:18:13,500 --> 05:18:15,600
a friend of mine told me that he had 3 x

10062
05:18:15,600 --> 05:18:18,500
his close rate last quarter from 25% to 75%

10063
05:18:18,500 --> 05:18:21,366
and I was like what on God's earth did you do

10064
05:18:21,533 --> 05:18:22,066
and so

10065
05:18:22,066 --> 05:18:23,666
I asked him if he used a payment plan or discount

10066
05:18:23,666 --> 05:18:25,966
he said neither and I was like okay

10067
05:18:25,966 --> 05:18:26,600
how does that work

10068
05:18:26,600 --> 05:18:28,966
he said he lowered his price by removing a feature

10069
05:18:28,966 --> 05:18:29,500
and I was like well

10070
05:18:29,500 --> 05:18:30,566
what feature did you remove

10071
05:18:30,566 --> 05:18:33,466
and he said my guarantee I was like what

10072
05:18:33,566 --> 05:18:34,166
he said yeah

10073
05:18:34,166 --> 05:18:38,833
so I have my 4,000 dollar thing and then people say

10074
05:18:38,900 --> 05:18:39,366
uh no

10075
05:18:39,366 --> 05:18:40,466
I can't afford that and he says

10076
05:18:40,466 --> 05:18:42,133
no worries he said I can do it for 2,000 dollars

10077
05:18:42,133 --> 05:18:43,366
I just won't give you a guarantee

10078
05:18:43,566 --> 05:18:44,300
and then what happens is

10079
05:18:44,300 --> 05:18:46,466
people see the value of the guarantee now

10080
05:18:46,466 --> 05:18:48,500
and then they reclose themselves on the higher priced

10081
05:18:48,500 --> 05:18:49,533
offer and so

10082
05:18:49,533 --> 05:18:51,400
we went from 25 out of 100 people buying

10083
05:18:51,400 --> 05:18:54,366
the expensive thing to 35 buying an expensive thing

10084
05:18:54,366 --> 05:18:56,200
and 40 buying the down sell

10085
05:18:56,400 --> 05:18:59,200
that's how I Learned the feature down sell process

10086
05:18:59,900 --> 05:19:01,200
so here's the description

10087
05:19:01,333 --> 05:19:02,400
so feature down sales

10088
05:19:02,400 --> 05:19:04,733
lower prices by changing what the customers get

10089
05:19:04,733 --> 05:19:06,200
so here we're actually lowering prices

10090
05:19:06,200 --> 05:19:08,200
the all the other examples were changing terms

10091
05:19:08,200 --> 05:19:09,566
here we lower prices

10092
05:19:09,733 --> 05:19:12,266
and I do them by offering less quantity

10093
05:19:12,266 --> 05:19:13,266
less quality

10094
05:19:13,333 --> 05:19:16,366
lower price alternatives or cutting optional components

10095
05:19:16,566 --> 05:19:18,800
so all features have a price and a value

10096
05:19:18,800 --> 05:19:20,000
this is where it gets really

10097
05:19:20,000 --> 05:19:22,566
really slick if you remove something

10098
05:19:22,566 --> 05:19:26,400
the price goes down sure but the value goes down too

10099
05:19:26,400 --> 05:19:27,900
so what features you remove

10100
05:19:27,900 --> 05:19:29,333
and how much you lower the price

10101
05:19:29,333 --> 05:19:31,700
affects how good of a deal the person gets

10102
05:19:31,766 --> 05:19:34,000
so this changes in your offers

10103
05:19:34,000 --> 05:19:36,900
price to value affects how people buy

10104
05:19:36,900 --> 05:19:39,666
so people wanna get the best deal for them

10105
05:19:39,700 --> 05:19:41,333
and so if you remove stuff they hate

10106
05:19:41,333 --> 05:19:42,900
and then lower the price a lot

10107
05:19:42,900 --> 05:19:45,533
they get a great deal if you remove stuff they love

10108
05:19:45,533 --> 05:19:46,700
and lower the price a little

10109
05:19:46,700 --> 05:19:49,133
they get a worse deal and this is where the

10110
05:19:49,133 --> 05:19:51,700
science of feature down selling becomes really

10111
05:19:51,700 --> 05:19:53,500
really sexy alright

10112
05:19:53,600 --> 05:19:57,166
so people will see the value in the thing you removed

10113
05:19:57,166 --> 05:19:59,233
after they see the difference in price

10114
05:19:59,333 --> 05:20:02,333
as in people will weigh how much money they save

10115
05:20:02,333 --> 05:20:04,100
against how much value they lose

10116
05:20:04,266 --> 05:20:06,466
so feature downselling gets customers to re

10117
05:20:06,466 --> 05:20:09,033
upsell themselves on the more expensive offers

10118
05:20:09,100 --> 05:20:10,900
so this means that you want to remove features

10119
05:20:10,900 --> 05:20:12,966
from highest to lowest value

10120
05:20:13,000 --> 05:20:15,266
since people want more value for their money

10121
05:20:15,266 --> 05:20:16,133
this incentivizes

10122
05:20:16,133 --> 05:20:18,000
customers to get the highest value purchase

10123
05:20:18,000 --> 05:20:20,900
for them feature downsells have a simple formula

10124
05:20:21,000 --> 05:20:22,233
take something away

10125
05:20:22,266 --> 05:20:24,566
lower the price and then in so many words ask

10126
05:20:24,566 --> 05:20:26,800
how about now so let's do some examples

10127
05:20:26,800 --> 05:20:27,933
so let's say you were down selling

10128
05:20:27,933 --> 05:20:29,000
product and service quality

10129
05:20:29,000 --> 05:20:31,633
so for services this might mean a lower amount

10130
05:20:31,766 --> 05:20:34,066
fewer sessions less time

10131
05:20:34,066 --> 05:20:35,233
shorter duration

10132
05:20:35,500 --> 05:20:38,033
for products it might mean fewer of them

10133
05:20:38,166 --> 05:20:40,500
alright so a product quantity downside would be

10134
05:20:40,500 --> 05:20:42,400
hey instead of a three month supply

10135
05:20:42,400 --> 05:20:44,566
how about we start with a just one month supply

10136
05:20:44,666 --> 05:20:46,666
a service quality downside might be saying

10137
05:20:46,666 --> 05:20:48,066
instead of four sessions a month

10138
05:20:48,066 --> 05:20:49,800
why don't we start you at two sessions a month

10139
05:20:49,800 --> 05:20:51,600
so this is service and quantity

10140
05:20:51,900 --> 05:20:54,566
alright so let's talk about product quality

10141
05:20:54,566 --> 05:20:56,000
so here's how we would down sell

10142
05:20:56,000 --> 05:20:57,200
you think about older versions

10143
05:20:57,200 --> 05:20:58,466
less reliable materials

10144
05:20:58,466 --> 05:21:01,766
materials of lower social status etcetera alright

10145
05:21:01,766 --> 05:21:04,733
so product quality say instead of set of leather seats

10146
05:21:04,733 --> 05:21:06,133
how do vinyl seats work

10147
05:21:06,133 --> 05:21:07,666
how's that sound feature down selling

10148
05:21:07,666 --> 05:21:09,966
service quality is a little bit more complex

10149
05:21:09,966 --> 05:21:11,600
because there's a whole bunch of them alright

10150
05:21:11,600 --> 05:21:12,933
so this means a lot of things

10151
05:21:12,933 --> 05:21:14,933
and I'll give you a few ways that I change

10152
05:21:14,933 --> 05:21:16,533
the quality of services and the hint

10153
05:21:16,533 --> 05:21:19,000
is that this always works to increase

10154
05:21:19,000 --> 05:21:19,800
service quality as well

10155
05:21:19,800 --> 05:21:20,933
so you can go the other direction as well

10156
05:21:20,933 --> 05:21:21,800
when you're thinking about

10157
05:21:21,800 --> 05:21:23,500
each of these vectors of quality

10158
05:21:23,500 --> 05:21:26,466
for services you can make your more expensive thing

10159
05:21:26,466 --> 05:21:28,200
have more of these alright

10160
05:21:28,200 --> 05:21:31,200
so instead of a 5 minute response time

10161
05:21:31,200 --> 05:21:32,933
why don't we just start you at overnight

10162
05:21:32,933 --> 05:21:35,100
response times you'll still save some money

10163
05:21:35,100 --> 05:21:37,700
and you'll get your answers just with a small delay

10164
05:21:37,766 --> 05:21:39,633
here are some more service quality features

10165
05:21:39,766 --> 05:21:41,100
so time availability

10166
05:21:41,100 --> 05:21:43,600
so specific times versus whenever you want

10167
05:21:43,600 --> 05:21:45,333
whenever you want is obviously more valuable

10168
05:21:45,333 --> 05:21:47,000
so if you're down selling it say alright

10169
05:21:47,000 --> 05:21:48,766
well you can only come on these office hours

10170
05:21:48,766 --> 05:21:49,966
rather than whenever you want

10171
05:21:50,266 --> 05:21:52,200
so days of week so that would be Monday

10172
05:21:52,200 --> 05:21:52,400
Wednesday

10173
05:21:52,400 --> 05:21:54,766
Friday versus all days it could be times of day

10174
05:21:54,766 --> 05:21:56,566
so 9 to 5 versus 24 hours

10175
05:21:56,566 --> 05:21:57,500
it could be amount of time

10176
05:21:57,500 --> 05:21:59,266
so you get 15 minutes of work calls versus sir

10177
05:21:59,266 --> 05:22:00,433
60 minutes of work calls

10178
05:22:00,766 --> 05:22:01,966
it could be location availability

10179
05:22:01,966 --> 05:22:04,600
this is where one location versus all locations we own

10180
05:22:04,600 --> 05:22:05,566
it could be cancellations

10181
05:22:05,566 --> 05:22:07,166
which means you can have reschedule fees

10182
05:22:07,166 --> 05:22:08,866
or it's free for you to reschedule uh

10183
05:22:08,866 --> 05:22:09,533
speed of response

10184
05:22:09,533 --> 05:22:11,766
you can reply in minutes versus hours versus days

10185
05:22:11,966 --> 05:22:13,933
speed of delivery so you can wait in line

10186
05:22:13,933 --> 05:22:15,933
versus priority versus same day versus next day

10187
05:22:15,933 --> 05:22:18,733
versus next week these are all different service ratio

10188
05:22:18,733 --> 05:22:20,300
one on one one on many

10189
05:22:20,300 --> 05:22:22,366
many to 1 which is the ultimate versus this

10190
05:22:22,366 --> 05:22:24,233
I have many of my team members on one person

10191
05:22:24,466 --> 05:22:25,700
communication method so

10192
05:22:25,700 --> 05:22:28,200
text support versus chat support versus video support

10193
05:22:28,266 --> 05:22:30,766
you've got provider qualification so is it the owner

10194
05:22:30,966 --> 05:22:32,066
a longtime employee

10195
05:22:32,066 --> 05:22:33,866
or a new employee who's Super Junior

10196
05:22:34,166 --> 05:22:35,900
is it live versus recorded

10197
05:22:35,900 --> 05:22:37,166
so you can watch it happen now

10198
05:22:37,166 --> 05:22:38,766
or watch it after it happens later

10199
05:22:38,766 --> 05:22:40,333
you can have in person versus remote

10200
05:22:40,333 --> 05:22:40,966
would you rather have

10201
05:22:40,966 --> 05:22:43,766
be here in person with me or watch it somewhere else

10202
05:22:43,766 --> 05:22:45,566
would you rather have do it yourself

10203
05:22:45,766 --> 05:22:47,133
would you rather us do it with you

10204
05:22:47,133 --> 05:22:48,766
or would you rather us do it for you

10205
05:22:49,066 --> 05:22:50,866
uh expiration so this thing works forever

10206
05:22:50,866 --> 05:22:52,266
or this is only works X times

10207
05:22:52,266 --> 05:22:55,366
or only works at specific times personalization

10208
05:22:55,366 --> 05:22:56,100
do you want it generic

10209
05:22:56,100 --> 05:22:57,500
or do you want it made just for you

10210
05:22:57,633 --> 05:22:58,733
insurance guarantees

10211
05:22:58,733 --> 05:23:01,066
so this is a thing of like lengths of time

10212
05:23:01,066 --> 05:23:03,166
so this works for 1 year or for life

10213
05:23:03,166 --> 05:23:04,300
in terms of the guarantee

10214
05:23:04,366 --> 05:23:07,533
so coverage this works when specific bad thing happens

10215
05:23:07,533 --> 05:23:10,400
or works when any bad thing happens terms

10216
05:23:10,400 --> 05:23:12,000
unconditional or only if you do X

10217
05:23:12,000 --> 05:23:14,833
y and Z it's a conditional guarantee

10218
05:23:15,266 --> 05:23:18,266
so all of those things are quality service downsells

10219
05:23:18,266 --> 05:23:19,966
which you can also flip into upsells

10220
05:23:19,966 --> 05:23:21,266
but if you're thinking about like man

10221
05:23:21,266 --> 05:23:23,666
how do I make my how do I how do I remove features

10222
05:23:23,666 --> 05:23:25,600
well you probably haven't even quantified

10223
05:23:25,600 --> 05:23:26,666
half of these for yourself

10224
05:23:26,933 --> 05:23:29,166
so quantify what your service expectations are

10225
05:23:29,166 --> 05:23:29,933
you don't need to mention

10226
05:23:29,933 --> 05:23:31,166
any of this stuff to somebody

10227
05:23:31,166 --> 05:23:33,000
but when you want to start peeling things back

10228
05:23:33,000 --> 05:23:35,366
you then tell them what it is and then remove it

10229
05:23:35,400 --> 05:23:37,966
so downselling by removing entire features

10230
05:23:37,966 --> 05:23:40,566
so rather than lowering quantity or quality

10231
05:23:40,566 --> 05:23:42,166
remove the feature itself so in the story

10232
05:23:42,166 --> 05:23:43,200
he removed a guarantee

10233
05:23:43,366 --> 05:23:44,966
so instead of priority chat support

10234
05:23:44,966 --> 05:23:46,666
email support and calls

10235
05:23:46,700 --> 05:23:48,666
why don't we just keep it to chat and email support

10236
05:23:48,666 --> 05:23:50,433
but drop the calls to save you some money

10237
05:23:50,566 --> 05:23:51,566
you still get your answers

10238
05:23:51,566 --> 05:23:52,600
it'll save us some time

10239
05:23:52,600 --> 05:23:54,200
and we can pass the savings on to you

10240
05:23:54,200 --> 05:23:55,700
so we remove this stuff

10241
05:23:55,700 --> 05:23:57,700
and then they can keep that stuff for a lower price

10242
05:23:57,700 --> 05:24:00,133
so feature downselling done for you to do it yourself

10243
05:24:00,133 --> 05:24:00,966
so this is a key one

10244
05:24:00,966 --> 05:24:03,000
this probably happens for a lot of service businesses

10245
05:24:03,100 --> 05:24:04,166
so some of you guys have like

10246
05:24:04,166 --> 05:24:05,733
online trainings and things like that

10247
05:24:05,733 --> 05:24:07,466
one to many that you were like hey

10248
05:24:07,466 --> 05:24:08,533
what if I download something else

10249
05:24:08,533 --> 05:24:09,966
most of the times you should just ignore it

10250
05:24:09,966 --> 05:24:12,200
but if you do insist here's a way to do it

10251
05:24:12,200 --> 05:24:14,466
so if someone says no to all your service down sells

10252
05:24:14,466 --> 05:24:15,266
you can down sell

10253
05:24:15,266 --> 05:24:17,100
another product that solves the same problem

10254
05:24:17,166 --> 05:24:19,166
so for a chiropractor for example

10255
05:24:19,166 --> 05:24:21,600
you say hey instead of chiropractic adjustments

10256
05:24:21,600 --> 05:24:22,800
let's just start you with some tools

10257
05:24:22,800 --> 05:24:24,966
you can do it yourself at home

10258
05:24:25,066 --> 05:24:28,033
then you'd sell home massage tools

10259
05:24:28,133 --> 05:24:29,533
foam rollers mats

10260
05:24:29,533 --> 05:24:30,333
etcetera so

10261
05:24:30,333 --> 05:24:31,800
this is just like the no sale

10262
05:24:31,800 --> 05:24:33,933
sale that I had in the supplement thing

10263
05:24:33,933 --> 05:24:34,966
where someone doesn't come in

10264
05:24:34,966 --> 05:24:35,933
they don't wanna buy the service

10265
05:24:35,933 --> 05:24:37,500
we say fine we'll do nutrition consult

10266
05:24:37,500 --> 05:24:39,300
and then we sell them the do it yourself version

10267
05:24:39,300 --> 05:24:41,033
which was the at home thumb drive

10268
05:24:41,166 --> 05:24:42,366
with nutritional support

10269
05:24:42,366 --> 05:24:43,766
but if you're gonna do this other thing

10270
05:24:43,766 --> 05:24:44,766
what happens you open up

10271
05:24:44,766 --> 05:24:46,866
a whole another can of problems that we get to solve

10272
05:24:46,866 --> 05:24:48,300
through them buying more stuff

10273
05:24:48,566 --> 05:24:49,766
if you're a painter well

10274
05:24:49,766 --> 05:24:51,733
if you can't afford me painting your house

10275
05:24:51,733 --> 05:24:53,533
why don't I just give you the paint

10276
05:24:53,533 --> 05:24:56,166
and let you lease one of our spray machines

10277
05:24:56,166 --> 05:24:58,966
for daily use easy down sell Alex Romazi

10278
05:24:59,066 --> 05:25:00,866
instead of me and my team buying your company

10279
05:25:00,866 --> 05:25:02,200
and actively growing your business

10280
05:25:02,200 --> 05:25:03,600
why don't you just attend a workshop

10281
05:25:03,600 --> 05:25:05,366
cough go to acquisition.com right

10282
05:25:05,366 --> 05:25:07,666
that's the idea so done for you is me and my whole team

10283
05:25:07,666 --> 05:25:10,466
doing everything we possibly can for good forever well

10284
05:25:10,466 --> 05:25:11,733
if I peel that back to okay

10285
05:25:11,733 --> 05:25:14,600
well just come to a workshop and you get a couple days

10286
05:25:14,600 --> 05:25:15,000
and we're gonna

10287
05:25:15,000 --> 05:25:16,466
look at all the things that we would do

10288
05:25:16,466 --> 05:25:17,600
we'll tell you exactly what we do

10289
05:25:17,600 --> 05:25:19,866
but it would be in an hour rather than for life

10290
05:25:19,900 --> 05:25:20,800
it's two days

10291
05:25:20,800 --> 05:25:24,066
the hour is if you're with one of our experts okay

10292
05:25:24,066 --> 05:25:25,566
so let's do important points

10293
05:25:25,700 --> 05:25:29,933
so remember never never negotiate price

10294
05:25:29,933 --> 05:25:32,366
maintain the position of a helpful guide

10295
05:25:32,466 --> 05:25:33,200
some more feature down

10296
05:25:33,200 --> 05:25:35,066
selling means trying to find the best deal for them

10297
05:25:35,066 --> 05:25:38,166
you can have unlimited shots on goal with a customer

10298
05:25:38,266 --> 05:25:39,733
as long as you remain helpful

10299
05:25:39,733 --> 05:25:41,100
you're like totally understand

10300
05:25:41,300 --> 05:25:41,700
let's see

10301
05:25:41,700 --> 05:25:43,166
if we can figure out something that will work for you

10302
05:25:43,166 --> 05:25:44,933
no one's offended by that if you're like

10303
05:25:44,933 --> 05:25:46,800
oh if you don't do that do this it's like yeah

10304
05:25:46,800 --> 05:25:48,400
feels a little feels a little icky

10305
05:25:48,400 --> 05:25:50,466
so you just want to keep that frame back foot of like

10306
05:25:50,466 --> 05:25:52,766
let's just find something that works for you man tweak

10307
05:25:52,766 --> 05:25:55,766
okay this is important

10308
05:25:55,866 --> 05:25:58,233
so tweak your feature downsell process

10309
05:25:58,300 --> 05:26:00,600
so we have the job of making the product

10310
05:26:00,600 --> 05:26:02,166
have the highest value to cost

10311
05:26:02,166 --> 05:26:03,800
in the eyes of the customer

10312
05:26:03,866 --> 05:26:04,966
but in the beginning

10313
05:26:04,966 --> 05:26:07,666
you won't know much about your customer preferences

10314
05:26:07,766 --> 05:26:09,666
so as you solve the same problems

10315
05:26:09,666 --> 05:26:10,900
for the same type of customer

10316
05:26:10,900 --> 05:26:12,866
you wanna learn what they find most valuable

10317
05:26:12,866 --> 05:26:14,700
and then you'll start standardizing it

10318
05:26:14,700 --> 05:26:17,800
because if everyone has the same order of

10319
05:26:18,200 --> 05:26:20,300
importance or preference then when you remove things

10320
05:26:20,300 --> 05:26:22,166
you can remove things in a specific order

10321
05:26:22,166 --> 05:26:24,400
like my friend removed the guarantee

10322
05:26:24,400 --> 05:26:24,900
and he knew that

10323
05:26:24,900 --> 05:26:26,600
that got the highest amount of uptakes

10324
05:26:26,800 --> 05:26:27,333
all right

10325
05:26:27,333 --> 05:26:29,700
so here's how I standardized my downsell process

10326
05:26:29,700 --> 05:26:31,533
so first I cut something valuable

10327
05:26:31,533 --> 05:26:33,466
and lower the price a little bit alright

10328
05:26:33,466 --> 05:26:34,533
so that's exactly what he did

10329
05:26:34,533 --> 05:26:35,966
so he had his guarantee thing

10330
05:26:35,966 --> 05:26:37,333
he lowered the price now I said two thousand

10331
05:26:37,333 --> 05:26:38,766
I don't remember what he lowered his price at

10332
05:26:38,766 --> 05:26:41,100
but if let's say it was four grand and he says okay

10333
05:26:41,100 --> 05:26:42,966
well I'll remove the guarantee and offer for thirty

10334
05:26:42,966 --> 05:26:46,066
five hundred because it's a tiny amount different

10335
05:26:46,066 --> 05:26:47,800
and I took something really valuable away

10336
05:26:47,800 --> 05:26:49,733
they're like oh no I'd rather have this

10337
05:26:49,733 --> 05:26:51,666
so they re upsell themselves

10338
05:26:51,666 --> 05:26:53,066
because I took something really valuable

10339
05:26:53,066 --> 05:26:54,366
and decrease the price a little

10340
05:26:54,500 --> 05:26:57,400
now at this point if they say no to that

10341
05:26:57,400 --> 05:26:58,400
I do this to get well

10342
05:26:58,400 --> 05:27:00,300
I do that to get them to reconsider the original price

10343
05:27:00,300 --> 05:27:01,566
if that fails

10344
05:27:01,666 --> 05:27:04,000
I continue removing features and lowering prices

10345
05:27:04,000 --> 05:27:05,066
until they buy so

10346
05:27:05,066 --> 05:27:06,700
I'd rather have people get something

10347
05:27:06,700 --> 05:27:07,800
rather than getting nothing

10348
05:27:07,800 --> 05:27:08,766
now at this point

10349
05:27:08,766 --> 05:27:10,266
the next feature I would typically remove

10350
05:27:10,266 --> 05:27:12,200
I would have a big decrease in price

10351
05:27:12,200 --> 05:27:13,366
because now I'm saying okay

10352
05:27:13,366 --> 05:27:14,733
this might be a price issue

10353
05:27:14,733 --> 05:27:15,866
so now I'm gonna try and take away

10354
05:27:15,866 --> 05:27:17,466
things that they don't care about

10355
05:27:17,466 --> 05:27:18,733
with a big decrease in price

10356
05:27:18,733 --> 05:27:20,166
and now I'm increasing the value

10357
05:27:20,166 --> 05:27:20,766
so basically

10358
05:27:20,766 --> 05:27:23,900
the first one is like a hip check of like big

10359
05:27:23,900 --> 05:27:25,466
valuable thing like a guarantee

10360
05:27:25,466 --> 05:27:27,566
tiny decrease in price they re upsell

10361
05:27:27,566 --> 05:27:29,100
they don't re upsell they would say hey

10362
05:27:29,100 --> 05:27:30,500
let's put the guarantee back in

10363
05:27:30,500 --> 05:27:33,100
and let's take this other feature away

10364
05:27:33,100 --> 05:27:35,166
and take a massive amount off the price

10365
05:27:35,200 --> 05:27:36,333
and then at that point they're like

10366
05:27:36,333 --> 05:27:38,566
oh wow less of this thing I don't care about

10367
05:27:38,566 --> 05:27:41,533
and way lower price sounds good to me alright

10368
05:27:41,533 --> 05:27:43,100
now if you want

10369
05:27:43,100 --> 05:27:44,866
you can start naming your feature combination

10370
05:27:44,866 --> 05:27:46,100
first class business class

10371
05:27:46,100 --> 05:27:48,900
economy as you remove features and change prices

10372
05:27:49,000 --> 05:27:51,766
now I prefer to name my cheapest combination

10373
05:27:51,766 --> 05:27:53,000
remember the rental car story

10374
05:27:53,000 --> 05:27:54,133
the minimum so

10375
05:27:54,133 --> 05:27:55,166
I like it because it implies

10376
05:27:55,166 --> 05:27:57,366
that they have to get at least that thing

10377
05:27:57,366 --> 05:27:59,400
and if someone rejects all other packages

10378
05:27:59,400 --> 05:28:01,566
I just say so nothing more than the minimum package

10379
05:28:01,566 --> 05:28:03,466
then same as they told me

10380
05:28:03,466 --> 05:28:07,366
and we do that because it always only works uh

10381
05:28:08,533 --> 05:28:09,866
doesn't always work but it's uh

10382
05:28:09,866 --> 05:28:12,166
it's very effective okay so

10383
05:28:12,166 --> 05:28:13,800
just like we have our

10384
05:28:13,800 --> 05:28:15,733
temperature check during the payment plan

10385
05:28:15,733 --> 05:28:17,900
down sell process we also have a temperature check

10386
05:28:17,900 --> 05:28:19,266
during the feature down sell process

10387
05:28:19,266 --> 05:28:20,700
so if you make two changes in a row

10388
05:28:20,700 --> 05:28:21,900
and they still refuse

10389
05:28:21,966 --> 05:28:23,500
make sure they still want the thing

10390
05:28:23,500 --> 05:28:25,166
you still say the same hey real quick

10391
05:28:25,166 --> 05:28:26,866
just to make sure that we're on the same

10392
05:28:26,866 --> 05:28:28,166
same scale here uh

10393
05:28:28,166 --> 05:28:29,700
1 to 10 how bad do you want this thing

10394
05:28:29,700 --> 05:28:31,733
now again if they say eight to 10 cool

10395
05:28:31,733 --> 05:28:33,333
we're gonna figure out something that'll work for you

10396
05:28:33,333 --> 05:28:34,700
they say less than 10 it's like hey

10397
05:28:34,700 --> 05:28:35,866
maybe I need to reconfigure this thing

10398
05:28:35,866 --> 05:28:37,733
or let's just figure out different terms of payment

10399
05:28:37,733 --> 05:28:38,633
and you actually

10400
05:28:39,133 --> 05:28:41,266
cross sell back to the payment plan down sales

10401
05:28:41,266 --> 05:28:42,666
so eight or above

10402
05:28:43,266 --> 05:28:45,500
start payment plan down selling after each down sell

10403
05:28:45,500 --> 05:28:47,066
ask deal or fair enough

10404
05:28:47,066 --> 05:28:49,300
and this is something that I've just found

10405
05:28:49,300 --> 05:28:52,066
that works ridiculously well with feature down sales

10406
05:28:52,200 --> 05:28:53,333
or payment plan down sales

10407
05:28:53,333 --> 05:28:55,066
is that it's

10408
05:28:55,066 --> 05:28:56,866
you're fundamentally kind of in like a barter mode

10409
05:28:56,866 --> 05:28:58,933
not in a bad way it's just like hey

10410
05:28:58,933 --> 05:29:00,966
let me make this work for you so if we did this

10411
05:29:00,966 --> 05:29:03,366
would that work for you right

10412
05:29:03,366 --> 05:29:06,666
does that sound fair that like deal that work

10413
05:29:06,800 --> 05:29:08,133
when you say those types of things

10414
05:29:08,133 --> 05:29:11,833
people have a hard time denying reciprocity

10415
05:29:11,933 --> 05:29:15,533
and so you say I want this thing you say

10416
05:29:15,533 --> 05:29:17,933
got it I will meet your I will meet your terms

10417
05:29:17,933 --> 05:29:18,766
I will remove this thing

10418
05:29:18,766 --> 05:29:21,400
but now you will meet my price fair enough

10419
05:29:21,500 --> 05:29:23,133
and if you do that two or three times

10420
05:29:23,133 --> 05:29:25,900
it's very hard for people to say no because they

10421
05:29:25,900 --> 05:29:26,966
it's hard for them to say no

10422
05:29:26,966 --> 05:29:30,400
that's not fair and my podcast episode 2:02

10423
05:29:30,400 --> 05:29:31,333
I give a

10424
05:29:31,333 --> 05:29:33,866
full verbal breakdown of exactly how I say this

10425
05:29:33,866 --> 05:29:36,700
with tonality so if you wanna listen to my podcast

10426
05:29:36,833 --> 05:29:38,400
episode 2 o two Alex Romizi

10427
05:29:38,400 --> 05:29:39,600
the game uh

10428
05:29:39,600 --> 05:29:42,033
you can listen to me actually walking this through

10429
05:29:42,100 --> 05:29:44,266
and so if you've got sales guys who do down sales

10430
05:29:44,266 --> 05:29:46,600
like highly recommend now um

10431
05:29:46,600 --> 05:29:47,833
free orientations

10432
05:29:47,866 --> 05:29:49,566
boost do it yourself feature down sales

10433
05:29:49,566 --> 05:29:50,833
so let me explain what I mean

10434
05:29:50,966 --> 05:29:54,500
so I ask so even though we're not gonna work together

10435
05:29:54,500 --> 05:29:55,600
so this is like now they're

10436
05:29:55,600 --> 05:29:57,300
they're not they're not buying anything on X

10437
05:29:57,300 --> 05:29:59,600
I still wanna help this is like the nutrition thing

10438
05:29:59,800 --> 05:30:02,266
how about you just come to a free orientation on X

10439
05:30:02,266 --> 05:30:04,400
tomorrow at the end of the orientation

10440
05:30:04,400 --> 05:30:05,900
I offer a DIY product

10441
05:30:05,900 --> 05:30:07,466
that solves the same problem as the done for you

10442
05:30:07,466 --> 05:30:08,966
services just a lower price

10443
05:30:08,966 --> 05:30:10,133
so I could also say

10444
05:30:10,133 --> 05:30:12,633
come to our home painters orientation

10445
05:30:12,700 --> 05:30:14,266
and so at the home painting orientation

10446
05:30:14,266 --> 05:30:16,966
I could then sell the daily rental of my machines

10447
05:30:16,966 --> 05:30:19,800
and some buckets of paint for them to go do it right

10448
05:30:19,800 --> 05:30:22,000
that's the idea so we just have another way

10449
05:30:22,000 --> 05:30:23,300
another version of our offer

10450
05:30:23,300 --> 05:30:25,400
that doesn't take much time from us for them to do it

10451
05:30:25,400 --> 05:30:27,933
and still pay us now um

10452
05:30:27,933 --> 05:30:29,500
just as little pro tips here

10453
05:30:29,533 --> 05:30:31,700
highly recommend feature down selling your guarantee

10454
05:30:31,866 --> 05:30:33,933
tiny decrease in price remove guarantee

10455
05:30:33,933 --> 05:30:35,466
many people re upsell themselves

10456
05:30:35,866 --> 05:30:38,266
and you could also feature down sell current customers

10457
05:30:38,266 --> 05:30:39,300
so this is a pro tip

10458
05:30:39,300 --> 05:30:41,700
so we found across our portfolio company

10459
05:30:41,700 --> 05:30:43,000
something really interesting

10460
05:30:43,133 --> 05:30:47,033
so when we compared LTV across all service segments

10461
05:30:47,100 --> 05:30:50,066
there was a service segment that was unbeknownst to me

10462
05:30:50,066 --> 05:30:52,000
that was the second highest LTV

10463
05:30:52,000 --> 05:30:53,500
and the reason that it was unbeknownst to me

10464
05:30:53,500 --> 05:30:56,566
or interesting was that they were at a far lower price

10465
05:30:56,566 --> 05:30:58,400
so typically the highest LTV customers

10466
05:30:58,400 --> 05:30:59,733
are the ones that pay the most

10467
05:30:59,733 --> 05:31:03,000
but in this instance the churn was so low

10468
05:31:03,000 --> 05:31:05,500
on these low to mid priced customers

10469
05:31:05,700 --> 05:31:09,766
that they ended up being worth a lot of money

10470
05:31:09,766 --> 05:31:10,966
and so this is what was different

10471
05:31:10,966 --> 05:31:12,800
about this particular customer group

10472
05:31:12,966 --> 05:31:14,866
the customers that we

10473
05:31:14,866 --> 05:31:17,066
in our companies had proactively went to

10474
05:31:17,066 --> 05:31:19,700
this is after we've already sold them stuff said hey

10475
05:31:19,700 --> 05:31:20,566
you're only using

10476
05:31:20,566 --> 05:31:22,900
four out of the six services that we offer

10477
05:31:22,900 --> 05:31:25,400
or you're only using four out of the six features

10478
05:31:25,500 --> 05:31:26,100
did you know that

10479
05:31:26,100 --> 05:31:28,633
you can get these four features at this lower rate

10480
05:31:29,300 --> 05:31:31,533
people are like oh no

10481
05:31:31,533 --> 05:31:34,066
I didn't know that and as soon as we say wait

10482
05:31:34,066 --> 05:31:34,133
well

10483
05:31:34,133 --> 05:31:35,733
why don't I just go ahead and take care of that for you

10484
05:31:35,733 --> 05:31:36,766
and I'll just lower you to this rate

10485
05:31:36,766 --> 05:31:38,466
that way you have the better deal for you

10486
05:31:38,600 --> 05:31:42,900
those people never leave so if you have people

10487
05:31:43,300 --> 05:31:44,566
there's this big misconception like

10488
05:31:44,566 --> 05:31:45,166
well I want to just

10489
05:31:45,166 --> 05:31:46,966
hopefully I'll just build them as long as I can

10490
05:31:47,866 --> 05:31:50,866
no find the people like hey

10491
05:31:50,866 --> 05:31:52,166
I get where you're coming from

10492
05:31:52,200 --> 05:31:54,300
this blew my mind which is why I'm sharing it with you

10493
05:31:54,300 --> 05:31:56,166
if you see people aren't using your stuff

10494
05:31:56,166 --> 05:31:57,566
they're going to cancel

10495
05:31:57,566 --> 05:31:58,933
and I have tons of data to support this

10496
05:31:58,933 --> 05:31:59,600
on the gym side

10497
05:31:59,600 --> 05:32:02,000
I'm sure it works across all businesses

10498
05:32:02,000 --> 05:32:03,533
but if people don't consume the stuff

10499
05:32:03,533 --> 05:32:05,200
they cancel at a much faster rate

10500
05:32:05,200 --> 05:32:05,800
and so

10501
05:32:05,800 --> 05:32:09,033
it's much easier to just adjust down the price to

10502
05:32:09,100 --> 05:32:10,466
match what they actually use

10503
05:32:10,466 --> 05:32:12,266
cause that's what they're actually getting value from

10504
05:32:12,266 --> 05:32:13,366
and then they're like wow

10505
05:32:13,366 --> 05:32:14,533
these guys are ethical and honest

10506
05:32:14,533 --> 05:32:16,700
they proactively asked me to pay less

10507
05:32:16,700 --> 05:32:19,266
I love these guys they went from being like

10508
05:32:19,266 --> 05:32:21,500
I might cancel cause I'm not using some of this stuff

10509
05:32:21,500 --> 05:32:22,700
to these guys are amazing

10510
05:32:22,700 --> 05:32:24,266
because they initiated it

10511
05:32:24,266 --> 05:32:26,566
so sure you can do this on a cancellation call

10512
05:32:26,566 --> 05:32:27,600
that's kind of like a last chance

10513
05:32:27,600 --> 05:32:28,566
but you get the goodwill

10514
05:32:28,566 --> 05:32:30,466
if you do it by you reaching out to them

10515
05:32:30,666 --> 05:32:32,500
and this is the last one that I love

10516
05:32:32,500 --> 05:32:36,200
this is the only way that you can lower your price

10517
05:32:36,400 --> 05:32:37,733
alright so you get you can quote me here

10518
05:32:37,733 --> 05:32:39,400
this is the the big exception

10519
05:32:39,666 --> 05:32:41,166
that you can lower your price

10520
05:32:41,266 --> 05:32:42,900
without changing what you give them

10521
05:32:43,266 --> 05:32:46,166
and that's because you change what they give you

10522
05:32:46,300 --> 05:32:50,266
so let's say I have a 500 dollar thing and they say

10523
05:32:50,266 --> 05:32:51,800
I just absolutely cannot afford anything

10524
05:32:51,800 --> 05:32:53,566
less than 400 dollars and I say

10525
05:32:53,566 --> 05:32:55,866
totally understand but for $400

10526
05:32:55,866 --> 05:32:57,800
you would do it yes okay

10527
05:32:57,800 --> 05:32:59,800
I will accept that under these terms

10528
05:32:59,800 --> 05:33:01,500
so now I've changed the offer

10529
05:33:01,600 --> 05:33:03,766
I say I'll do that

10530
05:33:03,766 --> 05:33:06,666
if you leave me reviews on all these sites

10531
05:33:06,900 --> 05:33:08,433
you leave me testimonials

10532
05:33:08,600 --> 05:33:09,800
you post every day

10533
05:33:09,800 --> 05:33:12,633
and you send me two referrals right now

10534
05:33:12,966 --> 05:33:14,166
introduce me to two people

10535
05:33:14,166 --> 05:33:15,600
by doing this

10536
05:33:16,500 --> 05:33:20,166
I then trade $100 for what is hopefully

10537
05:33:20,166 --> 05:33:21,733
more valuable to me

10538
05:33:21,733 --> 05:33:23,500
than a hundred dollars of advertising

10539
05:33:23,733 --> 05:33:25,666
and so every person can do other stuff

10540
05:33:25,666 --> 05:33:28,200
and so fundamentally this is price plus barter

10541
05:33:28,200 --> 05:33:30,400
so if somebody comes to me and I did this

10542
05:33:30,533 --> 05:33:31,700
if somebody comes to me and says

10543
05:33:31,700 --> 05:33:35,566
hey Susan signed up for $400 and I signed up for $600

10544
05:33:35,566 --> 05:33:36,566
I'm like oh

10545
05:33:36,766 --> 05:33:37,800
do you wanna do what Susan did

10546
05:33:37,800 --> 05:33:39,066
cause I would love that

10547
05:33:39,200 --> 05:33:41,200
because Susan cleans my gym for me every day

10548
05:33:41,200 --> 05:33:43,133
and she also introduced me to three of her friends

10549
05:33:43,133 --> 05:33:44,466
and she posts on Facebook every day

10550
05:33:44,466 --> 05:33:45,100
do you want to do that

10551
05:33:45,100 --> 05:33:46,300
we can get you set up right now and they're like

10552
05:33:46,300 --> 05:33:47,100
oh

10553
05:33:47,700 --> 05:33:49,200
I'll keep the 600 I'm like god

10554
05:33:49,200 --> 05:33:52,600
no worries so you absolutely have your ass covered

10555
05:33:52,600 --> 05:33:55,166
because these are the terms under which Susan did

10556
05:33:55,166 --> 05:33:55,966
pay less

10557
05:33:56,300 --> 05:34:00,300
and so if someone absolutely no way can pay less barter

10558
05:34:00,366 --> 05:34:00,666
because

10559
05:34:00,666 --> 05:34:02,333
there's always some things that they can do for you

10560
05:34:02,333 --> 05:34:03,366
and most of the time

10561
05:34:03,366 --> 05:34:04,766
that's gonna be the form of advertising

10562
05:34:04,766 --> 05:34:05,533
they can leave your reviews

10563
05:34:05,533 --> 05:34:06,566
they can leave your testimonials

10564
05:34:06,566 --> 05:34:07,866
and they can send you friends

10565
05:34:07,866 --> 05:34:09,233
so summary

10566
05:34:09,300 --> 05:34:11,966
so feature down sales lower prices by removing stuff

10567
05:34:11,966 --> 05:34:13,266
you take something away

10568
05:34:13,266 --> 05:34:15,366
lower the price can ask how about now

10569
05:34:15,400 --> 05:34:17,700
typical feature down sales offer less quantity

10570
05:34:17,700 --> 05:34:18,400
less quality

10571
05:34:18,400 --> 05:34:20,633
cheaper alternatives or remove features all together

10572
05:34:20,700 --> 05:34:22,966
people tend to see the value in what you removed

10573
05:34:22,966 --> 05:34:24,600
after they see the price difference

10574
05:34:24,866 --> 05:34:27,766
you may get more people to take the more expensive up

10575
05:34:27,766 --> 05:34:29,166
by doing it this way

10576
05:34:29,300 --> 05:34:31,666
if you remove stuff they hate and lower the price

10577
05:34:31,666 --> 05:34:33,066
a lot people

10578
05:34:33,066 --> 05:34:34,366
more people will take the down sale

10579
05:34:34,466 --> 05:34:36,100
if you remove stuff they love and lower the price

10580
05:34:36,100 --> 05:34:38,233
a little more people will take the original offer

10581
05:34:38,366 --> 05:34:40,666
so the first down sell gets them to reconsider

10582
05:34:40,666 --> 05:34:42,800
my first offer the rest of my down sells

10583
05:34:42,800 --> 05:34:44,766
get them to consider the best deal for them

10584
05:34:44,766 --> 05:34:47,100
if a prospect rejects multiple down sells

10585
05:34:47,100 --> 05:34:49,400
see if they still want your thing before continuing

10586
05:34:49,400 --> 05:34:50,866
this is the 8 to 10 thing

10587
05:34:50,933 --> 05:34:52,933
if a prospect likes a combination of features

10588
05:34:52,933 --> 05:34:54,400
but still doesn't like the price

10589
05:34:54,466 --> 05:34:56,066
start payment plan down selling

10590
05:34:56,066 --> 05:34:57,366
which is very effective at this point

10591
05:34:57,366 --> 05:34:59,100
cause now you've really got this thing right for them

10592
05:34:59,100 --> 05:35:01,166
it's like OK this is a sweet of features

10593
05:35:01,166 --> 05:35:02,266
this is the price they like no

10594
05:35:02,266 --> 05:35:03,000
this is everything I want

10595
05:35:03,000 --> 05:35:04,200
I just can't afford it and like

10596
05:35:04,266 --> 05:35:06,466
can you afford it in general or not afford it today

10597
05:35:06,466 --> 05:35:07,866
they're like today cool

10598
05:35:07,866 --> 05:35:08,966
then let's break this out

10599
05:35:08,966 --> 05:35:09,866
how can you do half now

10600
05:35:09,866 --> 05:35:11,500
half when you get paid and you go down that path

10601
05:35:11,666 --> 05:35:13,100
now you can feature down

10602
05:35:13,100 --> 05:35:15,066
sell existing customers before they cancel

10603
05:35:15,066 --> 05:35:16,566
which actually extends the LTV

10604
05:35:16,566 --> 05:35:18,733
and you can discount customers

10605
05:35:18,733 --> 05:35:20,700
in exchange for them advertising your business

10606
05:35:20,700 --> 05:35:21,900
those are feature down sells

10607
05:35:21,900 --> 05:35:25,600
and finishes or concludes our down sell offer section

10608
05:35:25,600 --> 05:35:28,466
and in the next and final of the four 4 prongs

10609
05:35:28,466 --> 05:35:30,000
we talk about continuity offers

10610
05:35:32,066 --> 05:35:34,800
so we just finished the down sale offer section

10611
05:35:34,800 --> 05:35:37,766
and now we move on to the magic of continuity offers

10612
05:35:37,766 --> 05:35:39,233
I've been a continuity guy my whole life

10613
05:35:39,233 --> 05:35:40,800
and so this is a section that I hold

10614
05:35:40,800 --> 05:35:41,466
near and dear to my heart

10615
05:35:41,466 --> 05:35:42,933
and has made me a tremendous amount of money

10616
05:35:42,966 --> 05:35:44,866
it also stabilizes cash flow for business

10617
05:35:44,866 --> 05:35:46,400
and so in our four money models

10618
05:35:46,400 --> 05:35:47,266
we have attraction upsells

10619
05:35:47,266 --> 05:35:49,100
downsells and now kaboom

10620
05:35:49,100 --> 05:35:49,966
continuity so

10621
05:35:49,966 --> 05:35:52,033
continuity offers provide ongoing value

10622
05:35:52,033 --> 05:35:54,066
that customers make ongoing payments for

10623
05:35:54,066 --> 05:35:55,066
until they cancel

10624
05:35:55,133 --> 05:35:56,700
they boost the profit from every customer

10625
05:35:56,700 --> 05:35:58,700
and give you one last thing to sell

10626
05:35:58,866 --> 05:36:00,166
continuity offers are awesome

10627
05:36:00,166 --> 05:36:01,900
because you sell once and get paid again

10628
05:36:01,900 --> 05:36:05,300
and again and again so here's my quick explanation

10629
05:36:05,366 --> 05:36:08,700
let's say you offer something for $1,000 to 100 people

10630
05:36:08,700 --> 05:36:09,666
and 10 people buy

10631
05:36:09,666 --> 05:36:13,400
you make $10,000 ten times a thousand dollars okay

10632
05:36:13,400 --> 05:36:16,000
now let's say that you talk to the same hundred people

10633
05:36:16,000 --> 05:36:17,433
but you make your thousand dollar thing

10634
05:36:17,433 --> 05:36:18,700
$50 a month instead

10635
05:36:18,700 --> 05:36:21,466
and at 50 bucks we can get 40 out of the hundred to buy

10636
05:36:21,466 --> 05:36:23,300
and if you keep those people for 20 months

10637
05:36:23,300 --> 05:36:25,400
you still make $1,000 from each customer

10638
05:36:25,400 --> 05:36:27,566
so you go from making $10,000 now

10639
05:36:27,566 --> 05:36:29,266
and zero dollars overtime

10640
05:36:29,300 --> 05:36:32,266
$2,000 now and $40,000 over time

10641
05:36:32,266 --> 05:36:34,600
and as an added bonus in the first example

10642
05:36:34,666 --> 05:36:36,400
if you only sold 10 customers

10643
05:36:36,400 --> 05:36:38,700
you'd only have 10 customers to upsell later

10644
05:36:38,900 --> 05:36:41,100
if you use a continuity offer and sold 40

10645
05:36:41,100 --> 05:36:41,566
customers

10646
05:36:41,566 --> 05:36:44,200
you'd have four times the customers to upsell later

10647
05:36:44,200 --> 05:36:45,600
which is a massive difference

10648
05:36:45,600 --> 05:36:48,066
this is fundamentally why people do continuity

10649
05:36:48,066 --> 05:36:50,033
you can sell more people at a lower price

10650
05:36:50,033 --> 05:36:51,766
you can still collect the same LTV

10651
05:36:51,766 --> 05:36:53,966
and you get four times the customers to upsell later

10652
05:36:54,000 --> 05:36:55,433
the pros are you can attract more customers

10653
05:36:55,433 --> 05:36:56,566
compared to something more expensive

10654
05:36:56,566 --> 05:36:58,866
the cons are but you make way less money now

10655
05:36:58,866 --> 05:37:01,200
which makes it tough to use as an attraction offer

10656
05:37:01,200 --> 05:37:02,966
on its own which is why we put it last

10657
05:37:02,966 --> 05:37:05,266
or at least why I tend to put it last

10658
05:37:05,366 --> 05:37:08,433
so the TLDR is that by making continuity offers last

10659
05:37:08,433 --> 05:37:10,066
we get the best of all worlds

10660
05:37:10,066 --> 05:37:11,900
we get cash today from attraction offers

10661
05:37:11,900 --> 05:37:13,466
upsell offers and down sell offers

10662
05:37:13,466 --> 05:37:14,700
and we get a little cash today

10663
05:37:14,700 --> 05:37:17,200
and tons of cash tomorrow from continuity offers

10664
05:37:17,366 --> 05:37:20,400
note to be clear you can make continuity offers

10665
05:37:20,566 --> 05:37:21,966
whenever and however you want

10666
05:37:21,966 --> 05:37:23,266
there are no rules alright

10667
05:37:23,266 --> 05:37:24,500
they can attract new customers

10668
05:37:24,500 --> 05:37:25,900
upsell and downsell current customers

10669
05:37:25,900 --> 05:37:27,200
or reengage all customers

10670
05:37:27,200 --> 05:37:29,000
same as all the others so

10671
05:37:29,000 --> 05:37:31,033
the objective here for content offers

10672
05:37:31,033 --> 05:37:32,566
within the money models that I explained

10673
05:37:32,566 --> 05:37:34,600
is to maximize lifetime value per customer

10674
05:37:34,600 --> 05:37:36,866
these have lower absolute gross profit

10675
05:37:36,866 --> 05:37:39,233
but higher gross margins often times

10676
05:37:39,233 --> 05:37:40,866
there are three topics we will cover down sell

10677
05:37:40,866 --> 05:37:43,366
the upsell calculating back of napkin LTV and big head

10678
05:37:43,366 --> 05:37:43,833
long tail

10679
05:37:43,833 --> 05:37:45,633
so let's rock through it so down sell the upsell

10680
05:37:45,633 --> 05:37:46,866
so this is my ￠2

10681
05:37:46,866 --> 05:37:49,466
I found it works best to down sell your up sell

10682
05:37:49,466 --> 05:37:51,233
so get more cash up front

10683
05:37:51,233 --> 05:37:52,266
sell shorter duration

10684
05:37:52,266 --> 05:37:54,766
and then add value and then sell it for less

10685
05:37:55,000 --> 05:37:55,200
alright

10686
05:37:55,200 --> 05:37:57,300
so when I explain this I had my 16 thousand dollar

10687
05:37:57,300 --> 05:37:58,100
16 week thing

10688
05:37:58,100 --> 05:37:59,700
thousand dollars a week and then I'd say hey

10689
05:37:59,700 --> 05:38:01,633
let me give you five times the value

10690
05:38:01,633 --> 05:38:04,833
and then it's less and people are like whoa

10691
05:38:04,833 --> 05:38:06,200
but I extended the term

10692
05:38:06,200 --> 05:38:08,433
so that's how I downsold my upsell

10693
05:38:08,433 --> 05:38:08,900
a lot of times

10694
05:38:08,900 --> 05:38:11,000
people want to increase the price of the upsell

10695
05:38:11,000 --> 05:38:12,100
there's nothing wrong with that

10696
05:38:12,100 --> 05:38:13,400
this is just an alternative method

10697
05:38:13,400 --> 05:38:14,700
that I found worked really well

10698
05:38:14,700 --> 05:38:17,500
my challenges in the beginning was $600 for six weeks

10699
05:38:17,500 --> 05:38:20,366
and then back in we sell $200 per month

10700
05:38:20,366 --> 05:38:22,366
so it's less so one is $100 a week

10701
05:38:22,366 --> 05:38:23,866
one's $50 a week it's half the price

10702
05:38:23,866 --> 05:38:26,166
and as a member you get all these benefits right

10703
05:38:26,166 --> 05:38:27,900
and so I like the down sell

10704
05:38:27,900 --> 05:38:28,766
the up sell process

10705
05:38:28,766 --> 05:38:30,833
because if they said yes to this thing

10706
05:38:30,833 --> 05:38:31,400
they're like oh

10707
05:38:31,400 --> 05:38:32,466
this is an even better deal

10708
05:38:32,466 --> 05:38:33,900
and then we convert even more of them

10709
05:38:33,900 --> 05:38:35,366
alright so here's how it sounds

10710
05:38:35,366 --> 05:38:37,233
so have you enjoyed everything so far

10711
05:38:37,233 --> 05:38:38,266
they say yes mind

10712
05:38:38,266 --> 05:38:39,400
if I tell you about a way to save a little bit

10713
05:38:39,400 --> 05:38:41,100
and get a lot more they say yes

10714
05:38:41,100 --> 05:38:42,466
you say so given you've enjoyed X

10715
05:38:42,466 --> 05:38:44,200
y and Z we want you here for the long term

10716
05:38:44,200 --> 05:38:45,400
so here's what we're gonna do

10717
05:38:45,433 --> 05:38:47,466
if you're in this with us for the long term

10718
05:38:47,466 --> 05:38:48,966
we want to reward you with even more stuff

10719
05:38:48,966 --> 05:38:50,833
and do it for less you in great

10720
05:38:50,833 --> 05:38:52,666
that's the sale it's very straightforward

10721
05:38:52,833 --> 05:38:55,000
so people think about monthly cash flow

10722
05:38:55,000 --> 05:38:56,300
more than they think about duration

10723
05:38:56,300 --> 05:38:58,466
so we had three year contracts

10724
05:38:58,500 --> 05:38:59,400
so the total

10725
05:38:59,400 --> 05:39:01,500
contract value was way higher than the 16 weeks

10726
05:39:01,500 --> 05:39:03,333
but the monthly payment was significantly lower

10727
05:39:03,466 --> 05:39:05,466
and so this is the power of commitments and contracts

10728
05:39:05,466 --> 05:39:08,233
it can significantly increase LTV if you deliver value

10729
05:39:08,233 --> 05:39:10,000
so that's down sell the up sell

10730
05:39:10,000 --> 05:39:12,766
now let's talk about calculating back of neck and LTV

10731
05:39:12,833 --> 05:39:16,533
so the simplest way to do this is look at your price

10732
05:39:16,666 --> 05:39:17,900
divide it by your monthly turn

10733
05:39:17,900 --> 05:39:20,266
and that gives you your lifetime revenue remember

10734
05:39:20,266 --> 05:39:21,200
we still have margin on this

10735
05:39:21,200 --> 05:39:22,700
we still have some cost of delivery

10736
05:39:22,766 --> 05:39:25,400
now the gross margin times lifetime revenue

10737
05:39:25,400 --> 05:39:27,066
equals your lifetime gross profit

10738
05:39:27,066 --> 05:39:28,033
so for example

10739
05:39:28,033 --> 05:39:30,166
let's say our price minus our cost of goods

10740
05:39:30,166 --> 05:39:32,100
times 100% equals our gross margin

10741
05:39:32,100 --> 05:39:33,666
so let's say we have 100 dollar price

10742
05:39:33,700 --> 05:39:37,466
20 dollar cost of goods times 100 = 80% gross margins

10743
05:39:37,500 --> 05:39:40,066
okay so now we take our 80% gross margins

10744
05:39:40,066 --> 05:39:42,266
we multiply by our lifetime revenue

10745
05:39:42,500 --> 05:39:44,900
and we get $800 of lifetime gross profit

10746
05:39:44,900 --> 05:39:47,200
that's how much we make per customer over lifetime

10747
05:39:47,400 --> 05:39:49,533
that is what you can calculate for yourself

10748
05:39:49,800 --> 05:39:50,800
given whatever it is you have

10749
05:39:50,800 --> 05:39:53,233
so you divide your price by your turn

10750
05:39:53,233 --> 05:39:54,200
that gives you the revenue

10751
05:39:54,266 --> 05:39:54,866
then you basically

10752
05:39:54,866 --> 05:39:56,000
just figure out what your gross margin is

10753
05:39:56,000 --> 05:39:57,833
multiply that by that and there you go

10754
05:39:57,833 --> 05:39:59,600
so getting people into continuity

10755
05:39:59,600 --> 05:40:01,000
automatically extends LTV

10756
05:40:01,000 --> 05:40:03,300
even with a company that does one time transactions

10757
05:40:03,466 --> 05:40:06,866
most recurring stuff that has basically no added value

10758
05:40:06,866 --> 05:40:08,333
I'm just being super real with you

10759
05:40:08,466 --> 05:40:10,166
the recurring is usually 3 months

10760
05:40:10,166 --> 05:40:11,766
which still 3 x G l t v

10761
05:40:11,766 --> 05:40:13,266
so if you sell physical products

10762
05:40:13,266 --> 05:40:14,900
which maybe have one time use

10763
05:40:15,033 --> 05:40:16,300
if you just get someone in subscription

10764
05:40:16,300 --> 05:40:18,333
it usually triples the value of the customer

10765
05:40:18,666 --> 05:40:21,500
so if half the people do that thing

10766
05:40:21,500 --> 05:40:23,400
then you've got half the people doing 3 x

10767
05:40:23,400 --> 05:40:24,433
and half them doing 1 x

10768
05:40:24,433 --> 05:40:26,800
which means you double the revenue of your business

10769
05:40:27,033 --> 05:40:29,333
not bad just by making it available

10770
05:40:29,466 --> 05:40:30,966
so the valuable money lesson is

10771
05:40:30,966 --> 05:40:33,266
people think more about price than they do about term

10772
05:40:33,600 --> 05:40:35,233
they think more about what they have to pay today

10773
05:40:35,233 --> 05:40:36,566
not what they're gonna have to pay tomorrow

10774
05:40:36,600 --> 05:40:38,966
to extend LTP just to give you an example here

10775
05:40:38,966 --> 05:40:40,966
if you have that hundred dollar per month thing

10776
05:40:40,966 --> 05:40:42,500
and you have 10% turn

10777
05:40:42,566 --> 05:40:45,100
your lifetime uh revenue would be a thousand bucks

10778
05:40:45,200 --> 05:40:47,800
if you go from 100 dollars divided by 3% turns

10779
05:40:47,800 --> 05:40:49,200
you go from 10% to 3%

10780
05:40:49,266 --> 05:40:52,833
you have a 3,000 dollar lifetime revenue massive

10781
05:40:52,833 --> 05:40:53,633
so some people are like oh

10782
05:40:53,633 --> 05:40:57,000
it's only decreasing churn by you know 7% no

10783
05:40:57,000 --> 05:40:59,700
you decreased it by 70% or 300 sorry

10784
05:40:59,700 --> 05:41:02,233
300% in terms of what it is alright

10785
05:41:02,233 --> 05:41:04,933
and so churn is how many customers leave monthly

10786
05:41:05,000 --> 05:41:06,566
from the ones who started the month

10787
05:41:06,566 --> 05:41:11,100
by percentage so if you want big LTV conquer churn

10788
05:41:11,400 --> 05:41:12,200
make this number

10789
05:41:12,200 --> 05:41:14,100
the people who cancel every month go down

10790
05:41:14,100 --> 05:41:17,233
and the amount that you make from that is unbelievable

10791
05:41:17,233 --> 05:41:19,066
so that's back of napkin LTV

10792
05:41:19,100 --> 05:41:20,633
so now let's talk about Big Head Long Tail

10793
05:41:20,633 --> 05:41:21,700
so John taught me this he said

10794
05:41:21,700 --> 05:41:23,300
you can shear a sheep that should

10795
05:41:23,300 --> 05:41:24,566
that should say sheep uh

10796
05:41:24,566 --> 05:41:26,666
you can shear sheep you can shear sheep for a lifetime

10797
05:41:26,666 --> 05:41:27,866
but you can only skin it once

10798
05:41:27,900 --> 05:41:29,400
and so he explained this

10799
05:41:29,400 --> 05:41:30,766
one thing to me that I've always remembered

10800
05:41:30,766 --> 05:41:31,600
he said you know

10801
05:41:31,600 --> 05:41:33,266
I had this membership at a tanning salon

10802
05:41:33,266 --> 05:41:35,066
that was a hundred dollars down then 10 bucks a month

10803
05:41:35,066 --> 05:41:37,466
he said or you could just pay 1999 a month

10804
05:41:37,466 --> 05:41:38,466
he said the he said

10805
05:41:38,466 --> 05:41:40,200
people would call him up

10806
05:41:40,200 --> 05:41:41,800
before their cards would expire

10807
05:41:41,800 --> 05:41:43,166
to make sure they got to save that

10808
05:41:43,166 --> 05:41:44,900
ten dollar a month thing and so

10809
05:41:44,900 --> 05:41:47,400
because they felt like they had bought that lower rate

10810
05:41:47,533 --> 05:41:49,000
they didn't want to lose it

10811
05:41:49,000 --> 05:41:50,833
and so that concept of the big head

10812
05:41:50,833 --> 05:41:52,700
long tail came from John like

10813
05:41:52,700 --> 05:41:54,266
if you pay $1,000

10814
05:41:54,266 --> 05:41:56,500
and then something's $50 a month afterwards

10815
05:41:56,500 --> 05:41:58,766
the likely that you want to cancel that's way lower

10816
05:41:58,866 --> 05:41:59,866
and so if you say hey

10817
05:41:59,866 --> 05:42:01,033
you can pay a thousand bucks now

10818
05:42:01,033 --> 05:42:02,366
and then you can earn this lower rate

10819
05:42:02,366 --> 05:42:05,000
or you can pay $200 a month

10820
05:42:05,000 --> 05:42:06,866
a lot of people are like shit

10821
05:42:06,866 --> 05:42:08,466
I'll just pay the grand and then keep the 50

10822
05:42:08,466 --> 05:42:09,633
but the thing is is that 50

10823
05:42:09,633 --> 05:42:11,600
the turnover that 50 is so low

10824
05:42:11,600 --> 05:42:14,366
that you even make more overtime than the $200 a month

10825
05:42:14,466 --> 05:42:16,300
so you have to play with the numbers here

10826
05:42:16,300 --> 05:42:18,066
but typically the more offset

10827
05:42:18,066 --> 05:42:19,833
the upfront versus the continuity

10828
05:42:19,833 --> 05:42:20,766
the more valuable it is

10829
05:42:20,766 --> 05:42:22,400
and I will do one little side quest here

10830
05:42:22,400 --> 05:42:23,266
and then we'll get into them

10831
05:42:23,266 --> 05:42:25,400
I think the main reason that a lot of education

10832
05:42:25,400 --> 05:42:26,866
businesses and media businesses

10833
05:42:26,866 --> 05:42:27,833
do not have good

10834
05:42:27,833 --> 05:42:30,933
continuity is because the price to value is mismatched

10835
05:42:31,000 --> 05:42:33,633
if I teach you arithmetic

10836
05:42:33,633 --> 05:42:35,066
the day before you learn arithmetic

10837
05:42:35,066 --> 05:42:36,366
it's unbelievably valuable

10838
05:42:36,366 --> 05:42:37,600
you you learn

10839
05:42:37,600 --> 05:42:39,633
you will be able to do mathematics in the world

10840
05:42:39,633 --> 05:42:40,800
how valuable is that

10841
05:42:40,800 --> 05:42:42,666
the day after you learn arithmetic

10842
05:42:42,866 --> 05:42:44,200
you getting a course on arithmetic

10843
05:42:44,200 --> 05:42:45,600
is that worth nothing

10844
05:42:45,666 --> 05:42:48,033
and so the problem is that a lot of uh

10845
05:42:48,033 --> 05:42:50,200
media and education businesses will take that

10846
05:42:50,200 --> 05:42:52,100
continuity concept that I talked about earlier like

10847
05:42:52,100 --> 05:42:53,466
well I could sell way more people

10848
05:42:53,466 --> 05:42:55,000
but the problem is that the value

10849
05:42:55,000 --> 05:42:57,200
diminishes precipitously with information

10850
05:42:57,200 --> 05:42:58,866
because once you've Learned something

10851
05:42:58,866 --> 05:42:59,666
you've Learned it

10852
05:42:59,666 --> 05:43:01,400
you've gotten you've extracted the value

10853
05:43:01,466 --> 05:43:03,700
and so the way that I like to think about this is that

10854
05:43:04,100 --> 05:43:05,366
either you sell Bolt

10855
05:43:05,366 --> 05:43:07,233
payments up front so you sell annual memberships

10856
05:43:07,233 --> 05:43:08,700
which I'm obviously a big fan of

10857
05:43:08,866 --> 05:43:12,433
or you can sell one time prices

10858
05:43:12,433 --> 05:43:14,400
for things that deliver one time value

10859
05:43:14,400 --> 05:43:16,200
and then you'd have much lower

10860
05:43:16,200 --> 05:43:18,466
continuity for things that deliver ongoing value

10861
05:43:18,466 --> 05:43:19,200
and so you basically

10862
05:43:19,200 --> 05:43:21,433
break apart the things that are one time value versus

10863
05:43:21,433 --> 05:43:23,400
consumable value and I'll give you an example

10864
05:43:23,500 --> 05:43:27,766
so in Gym Watch we had um like a sales system

10865
05:43:27,766 --> 05:43:28,833
once you install the sales system

10866
05:43:28,833 --> 05:43:30,166
you have the sales system okay

10867
05:43:30,166 --> 05:43:32,100
got it so that would be one time value

10868
05:43:32,400 --> 05:43:33,966
something that would be recurring value

10869
05:43:33,966 --> 05:43:36,966
or consumable value but would be calls with uh

10870
05:43:36,966 --> 05:43:38,033
one of our business consultants

10871
05:43:38,033 --> 05:43:39,233
who's gonna make sure that you're tweaking

10872
05:43:39,233 --> 05:43:40,000
the things in your business

10873
05:43:40,000 --> 05:43:41,566
and look at the metrics every single month

10874
05:43:41,766 --> 05:43:43,466
having access to the new plays

10875
05:43:43,466 --> 05:43:45,466
or new releases that were released every single month

10876
05:43:45,466 --> 05:43:47,233
that's something that's consumed every single month

10877
05:43:47,233 --> 05:43:48,066
cause it's new

10878
05:43:48,066 --> 05:43:50,833
if we had new ads that we were going to test and run

10879
05:43:50,833 --> 05:43:52,000
to make sure they were winners

10880
05:43:52,100 --> 05:43:53,200
then every month you're like

10881
05:43:53,200 --> 05:43:54,300
I want the new ads

10882
05:43:54,300 --> 05:43:56,366
so those are things that are consumable

10883
05:43:56,433 --> 05:43:58,300
so it makes sense to price

10884
05:43:58,666 --> 05:44:01,200
the payment plan or the continuity

10885
05:44:01,200 --> 05:44:02,866
based on the value of those consumables

10886
05:44:02,866 --> 05:44:05,400
not the blended value of the one time thing

10887
05:44:05,400 --> 05:44:06,200
and the consumable

10888
05:44:06,200 --> 05:44:08,266
because that blended value would be much higher

10889
05:44:08,266 --> 05:44:11,200
and would have a much higher likelihood of churn

10890
05:44:11,200 --> 05:44:12,033
and so this is how

10891
05:44:12,033 --> 05:44:14,666
I would prefer to fix most education businesses

10892
05:44:14,666 --> 05:44:16,966
nothing wrong like they often have high churn

10893
05:44:16,966 --> 05:44:18,266
simply because they're mispriced

10894
05:44:18,266 --> 05:44:19,766
they kind of try to price in the middle

10895
05:44:19,766 --> 05:44:20,233
when really

10896
05:44:20,233 --> 05:44:23,200
you should price way high up front and lower over time

10897
05:44:23,200 --> 05:44:25,700
or alternatively just charge annual

10898
05:44:25,766 --> 05:44:27,000
and then that way you're just

10899
05:44:27,000 --> 05:44:29,266
basically looking back into the future and saying hey

10900
05:44:29,266 --> 05:44:30,666
if a year from now you can do all these things

10901
05:44:30,666 --> 05:44:32,200
would that be valuable yes

10902
05:44:32,200 --> 05:44:33,633
and then you have a whole year to figure out what

10903
05:44:33,633 --> 05:44:34,900
the next big thing you're gonna have is

10904
05:44:34,900 --> 05:44:35,300
basically

10905
05:44:35,300 --> 05:44:37,666
buys you more time to figure out what the next

10906
05:44:38,000 --> 05:44:39,400
offer you're gonna make them

10907
05:44:39,500 --> 05:44:42,300
that the first offer you did solved

10908
05:44:42,300 --> 05:44:43,800
so if I taught you how to sell

10909
05:44:43,800 --> 05:44:45,400
well then maybe you wanna learn how to market

10910
05:44:45,400 --> 05:44:46,166
if I taught you how to sell

10911
05:44:46,166 --> 05:44:47,200
maybe you wanna learn how to onboard

10912
05:44:47,200 --> 05:44:48,633
there's gonna still be the same offer

10913
05:44:48,633 --> 05:44:49,766
solution cycle that exists

10914
05:44:49,766 --> 05:44:50,433
and you can still

10915
05:44:50,433 --> 05:44:52,166
include that within the continuity that you have

10916
05:44:52,166 --> 05:44:53,400
so real word offer

10917
05:44:53,400 --> 05:44:55,900
so let's say you $5,000 down 200 bucks a month

10918
05:44:55,900 --> 05:44:57,433
this also do the big head

10919
05:44:57,433 --> 05:44:59,266
long tail helps with client finance acquisition

10920
05:44:59,266 --> 05:45:00,800
because you have this big upfront payment

10921
05:45:00,800 --> 05:45:02,533
you can offset the cost to your customers

10922
05:45:02,666 --> 05:45:03,900
offset your sales commissions

10923
05:45:03,900 --> 05:45:05,266
and then you get the continuity

10924
05:45:05,266 --> 05:45:06,166
and the nice thing here is

10925
05:45:06,166 --> 05:45:07,300
the cancellation rate is very

10926
05:45:07,300 --> 05:45:09,233
very low because of sunk cost fallacy

10927
05:45:09,233 --> 05:45:10,200
people don't wanna lose money

10928
05:45:10,200 --> 05:45:11,833
they put down so it's very unlikely

10929
05:45:11,833 --> 05:45:13,466
someone's $5,000 down and then cancels

10930
05:45:13,466 --> 05:45:15,866
month two enterprise value is based on a discount

10931
05:45:15,866 --> 05:45:17,266
applied to future cash flows

10932
05:45:17,266 --> 05:45:18,766
which really comes down to how much money

10933
05:45:18,766 --> 05:45:20,300
and how likely is it to occur

10934
05:45:20,366 --> 05:45:22,400
and so for you to have a very big business

10935
05:45:22,400 --> 05:45:23,866
you want lots of money

10936
05:45:23,866 --> 05:45:24,833
that's gonna happen in the future

10937
05:45:24,833 --> 05:45:27,233
that's very likely that gives you a big multiple

10938
05:45:27,233 --> 05:45:28,533
on the value of your business

10939
05:45:28,666 --> 05:45:29,966
if you have very little money

10940
05:45:29,966 --> 05:45:31,366
and it's very unlikely to occur

10941
05:45:31,366 --> 05:45:33,333
then it's a small multiple or none at all

10942
05:45:33,400 --> 05:45:34,066
so

10943
05:45:34,066 --> 05:45:38,866
this features into how likely will we retain customer

10944
05:45:39,000 --> 05:45:39,700
retain customers

10945
05:45:39,700 --> 05:45:42,066
retain revenue and have that increase over time

10946
05:45:42,066 --> 05:45:44,300
this is where continuity becomes more valuable

10947
05:45:44,300 --> 05:45:45,866
this is again this is not in the book

10948
05:45:45,866 --> 05:45:47,900
so this is me giving you bonus stuff um

10949
05:45:47,900 --> 05:45:49,600
there's a difference between recurring and reoccurring

10950
05:45:49,600 --> 05:45:51,266
revenue so Netflix is recurring

10951
05:45:51,266 --> 05:45:53,866
think memberships Coca Cola is reoccurring

10952
05:45:53,866 --> 05:45:56,000
I am a Coca Cola product buyer

10953
05:45:56,033 --> 05:45:57,433
I buy lots of their drinks

10954
05:45:57,433 --> 05:45:59,700
and I do that on a regular basis

10955
05:45:59,700 --> 05:46:01,066
but I don't have a fixed membership

10956
05:46:01,066 --> 05:46:03,666
but I reoccur both are great

10957
05:46:03,666 --> 05:46:05,066
the key with this one is that

10958
05:46:05,066 --> 05:46:07,100
you just need to demonstrate that hey

10959
05:46:07,100 --> 05:46:07,833
I for example

10960
05:46:07,833 --> 05:46:09,866
there's a sauce company that I like and I bought

10961
05:46:09,866 --> 05:46:11,700
I bought their sauce for like four straight years

10962
05:46:11,700 --> 05:46:12,766
and I use it every single month

10963
05:46:12,766 --> 05:46:14,200
I go through three or four bottles a month

10964
05:46:14,200 --> 05:46:15,833
and I've been using for years

10965
05:46:15,833 --> 05:46:17,000
and sure as hell

10966
05:46:17,000 --> 05:46:18,833
you can bet that they can calculate that

10967
05:46:18,833 --> 05:46:20,900
the average person who buys a bottle over time

10968
05:46:20,900 --> 05:46:22,166
buys another 20 bottles

10969
05:46:22,200 --> 05:46:24,066
that makes it a very valuable business

10970
05:46:24,200 --> 05:46:24,800
company 1

10971
05:46:24,800 --> 05:46:27,366
let's say that's got top line of $10 million EBITDA 3

10972
05:46:27,366 --> 05:46:29,366
company 2 is 10 million and 3 million EBITDA

10973
05:46:29,566 --> 05:46:31,600
okay this one's all transactional

10974
05:46:31,700 --> 05:46:32,966
you might get a 4 x multiple

10975
05:46:32,966 --> 05:46:33,966
this is all recurring

10976
05:46:33,966 --> 05:46:35,766
and based on how much you retain it

10977
05:46:35,766 --> 05:46:37,200
it might be worth 8 to 15 times

10978
05:46:37,200 --> 05:46:41,366
so it's 24 to 45 million so between 12 and 24 to 45

10979
05:46:41,366 --> 05:46:42,566
that's a hell of a lot more money

10980
05:46:42,566 --> 05:46:45,166
so this is problems worth solving

10981
05:46:45,200 --> 05:46:47,100
and so if they stay

10982
05:46:47,100 --> 05:46:50,266
buyers will pay and when I say buyers I mean investors

10983
05:46:50,366 --> 05:46:52,266
so my personal note is that you sleep great

10984
05:46:52,266 --> 05:46:53,433
this is me telling you personally

10985
05:46:53,433 --> 05:46:54,566
when you know on the 1st of the month

10986
05:46:54,566 --> 05:46:55,466
that all your bills are paid

10987
05:46:55,466 --> 05:46:56,566
and your profit is already locked in

10988
05:46:56,566 --> 05:46:58,066
and everything else you have is gravy

10989
05:46:58,200 --> 05:47:00,966
and so recurring slash continuity equals stability

10990
05:47:00,966 --> 05:47:02,566
which is why it's the fourth pillar of this

10991
05:47:02,566 --> 05:47:05,033
it's also the thing that will usually make your company

10992
05:47:05,033 --> 05:47:07,166
the most valuable so have I sold you

10993
05:47:07,166 --> 05:47:07,500
hopefully

10994
05:47:07,500 --> 05:47:09,500
on adding some recurring element to your business

10995
05:47:09,833 --> 05:47:10,600
great so

10996
05:47:10,600 --> 05:47:12,066
let's get to the three best combinations

10997
05:47:12,066 --> 05:47:13,166
that I've seen and used

10998
05:47:13,200 --> 05:47:14,100
continuity bonus offers

10999
05:47:14,100 --> 05:47:16,200
continuity discount offers and then the wave fee offer

11000
05:47:16,200 --> 05:47:16,933
alright

11001
05:47:16,933 --> 05:47:19,666
so let's rock and roll and now we do bonus offer

11002
05:47:21,700 --> 05:47:24,666
so we just covered the intro to continuity offers

11003
05:47:24,666 --> 05:47:25,666
and why continuity offers

11004
05:47:25,666 --> 05:47:26,900
will make your business more valuable

11005
05:47:26,900 --> 05:47:28,066
they will stabilize cash flow

11006
05:47:28,066 --> 05:47:28,966
they can sell more customers

11007
05:47:28,966 --> 05:47:30,066
that you can potentially upsell in the future

11008
05:47:30,066 --> 05:47:31,566
and they give you one last thing to sell

11009
05:47:31,633 --> 05:47:34,100
now we start into continuity bonus offer

11010
05:47:34,100 --> 05:47:35,166
which is one of my favorite

11011
05:47:35,233 --> 05:47:36,866
continuity offer structures

11012
05:47:36,866 --> 05:47:38,400
so here's how I Learned it

11013
05:47:38,400 --> 05:47:41,233
I saw this ad that said

11014
05:47:41,233 --> 05:47:43,866
I'm giving away all my courses for free

11015
05:47:44,000 --> 05:47:45,366
and I was like that's insane

11016
05:47:45,366 --> 05:47:46,366
what's the catch

11017
05:47:46,500 --> 05:47:48,600
and so I had bought some of this guy's courses

11018
05:47:48,600 --> 05:47:49,800
so I knew that the courses

11019
05:47:49,800 --> 05:47:51,033
the price points that he was selling them for

11020
05:47:51,033 --> 05:47:52,200
were the legit prices

11021
05:47:52,266 --> 05:47:55,000
and so for me to buy all of them at once

11022
05:47:55,000 --> 05:47:56,566
it would have been $24,000

11023
05:47:56,633 --> 05:47:57,033
he said

11024
05:47:57,033 --> 05:48:01,266
or you can just get a free trial of my three hundred

11025
05:48:01,266 --> 05:48:03,466
ninety nine dollar a month newsletter

11026
05:48:03,466 --> 05:48:04,966
so I get the first three days free

11027
05:48:04,966 --> 05:48:08,666
and I get all of this stuff just for trying it

11028
05:48:08,666 --> 05:48:10,166
and I was like wow what a deal

11029
05:48:10,400 --> 05:48:11,400
then on the thank you page

11030
05:48:11,400 --> 05:48:14,400
it said or you can pay today for 2

11031
05:48:14,400 --> 05:48:17,633
99 a month and you get just the

11032
05:48:17,633 --> 05:48:19,100
all the back newsletters

11033
05:48:19,433 --> 05:48:20,966
that I've done up to this point

11034
05:48:21,033 --> 05:48:22,300
if you do this

11035
05:48:22,600 --> 05:48:26,266
and you get to lock in this two 99 a month for life

11036
05:48:26,266 --> 05:48:27,566
this is also a lifetime discount

11037
05:48:27,566 --> 05:48:29,200
this is a combination so uh

11038
05:48:29,200 --> 05:48:30,766
one of my team asked me they're like man

11039
05:48:30,766 --> 05:48:32,200
I'm thinking about all the different businesses

11040
05:48:32,200 --> 05:48:32,966
that I've seen

11041
05:48:32,966 --> 05:48:34,500
and some of it's like combination of this and this

11042
05:48:34,500 --> 05:48:37,366
it's like yeah that's 100% the point

11043
05:48:37,366 --> 05:48:40,033
these are as as narrow down as I could focus them

11044
05:48:40,033 --> 05:48:40,633
so that I could

11045
05:48:40,633 --> 05:48:42,600
kind of teach or break down each of the concepts

11046
05:48:42,600 --> 05:48:45,000
but these absolutely mix and match

11047
05:48:45,000 --> 05:48:47,100
you absolutely can do when you're in a back

11048
05:48:47,100 --> 05:48:49,666
into a rollover offer into a continuity bonus

11049
05:48:49,666 --> 05:48:52,033
that also has some lifetime discount components to it

11050
05:48:52,033 --> 05:48:54,233
like there's unlimited variations

11051
05:48:54,233 --> 05:48:55,300
and that's the joy of this

11052
05:48:55,300 --> 05:48:56,366
this is what I love

11053
05:48:56,366 --> 05:48:58,566
when I'm building a money model for businesses

11054
05:48:58,633 --> 05:49:01,266
taking the the Lego pieces and putting them together

11055
05:49:01,266 --> 05:49:02,033
and being like wow

11056
05:49:02,033 --> 05:49:03,866
look if we did this we get this percentage here

11057
05:49:03,866 --> 05:49:05,733
look how much we can extend LTV

11058
05:49:05,766 --> 05:49:08,033
that's the that's where the real magic happens

11059
05:49:08,033 --> 05:49:10,200
but you can't build a building unless you learn how to

11060
05:49:10,200 --> 05:49:12,200
lay a brick so that's what we're doing okay

11061
05:49:12,200 --> 05:49:14,766
so note he didn't offer the 24,000 dollar offer

11062
05:49:14,766 --> 05:49:17,366
he simply valued it all right

11063
05:49:17,433 --> 05:49:19,033
now when I saw that I was like

11064
05:49:19,033 --> 05:49:20,166
that's a really cool offer

11065
05:49:20,166 --> 05:49:23,500
this is then when it happened in my world years later

11066
05:49:23,500 --> 05:49:26,000
so there was this gym owner that hopped on a call

11067
05:49:26,500 --> 05:49:27,566
and I was like okay

11068
05:49:27,566 --> 05:49:28,666
you know tell me your numbers

11069
05:49:28,800 --> 05:49:30,366
and he was crushing everyone's numbers

11070
05:49:30,366 --> 05:49:31,000
and I was like dude

11071
05:49:31,000 --> 05:49:33,166
what are you doing and he explained

11072
05:49:33,166 --> 05:49:34,933
that he had a new way of getting members

11073
05:49:35,266 --> 05:49:36,033
and it wasn't that

11074
05:49:36,033 --> 05:49:38,966
he had started offering a different front end offer

11075
05:49:38,966 --> 05:49:40,066
in terms of his advertising

11076
05:49:40,066 --> 05:49:41,566
so he kept our ads he kept our copy

11077
05:49:41,566 --> 05:49:42,700
all that stuff was the same

11078
05:49:42,700 --> 05:49:43,833
but when people came in

11079
05:49:43,833 --> 05:49:46,000
he had a different way of kind of judo chopping

11080
05:49:46,000 --> 05:49:47,933
how he would make the presentation

11081
05:49:48,100 --> 05:49:50,000
and so what he did was

11082
05:49:50,200 --> 05:49:52,533
he increased the price of his challenge

11083
05:49:52,800 --> 05:49:55,100
and so then he offered that thing

11084
05:49:55,100 --> 05:49:56,566
after selling it to them

11085
05:49:56,566 --> 05:49:59,233
as a free gift for just becoming a member

11086
05:49:59,233 --> 05:50:01,233
so remember I came from the gym world

11087
05:50:01,233 --> 05:50:02,433
we wanted to sell continuity

11088
05:50:02,433 --> 05:50:02,866
at the end of the day

11089
05:50:02,866 --> 05:50:04,000
you just want everyone to get into memberships

11090
05:50:04,000 --> 05:50:05,500
but the thing is no one wants to buy a membership

11091
05:50:05,500 --> 05:50:06,600
that's the problem

11092
05:50:06,600 --> 05:50:08,700
and so we have to come up with 21 day transformations

11093
05:50:08,700 --> 05:50:10,400
28 day transformations six week challenges

11094
05:50:10,400 --> 05:50:13,066
all this stuff to get people in the door

11095
05:50:13,066 --> 05:50:14,466
and then they realize after they work out

11096
05:50:14,466 --> 05:50:15,666
they feel good they want to do this for life

11097
05:50:15,666 --> 05:50:17,866
but people don't just come and sign up for memberships

11098
05:50:17,866 --> 05:50:20,166
not often and people get a way better experience

11099
05:50:20,166 --> 05:50:21,000
when you have some sort of like

11100
05:50:21,000 --> 05:50:22,033
structured onboarding

11101
05:50:22,033 --> 05:50:23,966
and so what he did was he was like huh

11102
05:50:24,033 --> 05:50:26,533
he said he did it by accident one time

11103
05:50:26,566 --> 05:50:27,966
and then he was like oh my god

11104
05:50:27,966 --> 05:50:29,200
that went so easily which by the way

11105
05:50:29,200 --> 05:50:31,000
is how most of the sales innovations happen

11106
05:50:31,033 --> 05:50:33,700
somebody came in and he saw them on the challenge

11107
05:50:33,700 --> 05:50:34,433
but they couldn't afford it

11108
05:50:34,433 --> 05:50:35,100
and he said you know what

11109
05:50:35,100 --> 05:50:36,200
I'll give you the challenge for free

11110
05:50:36,200 --> 05:50:37,066
if you just sign up as a member

11111
05:50:37,066 --> 05:50:38,466
and they were like oh cool

11112
05:50:38,700 --> 05:50:40,066
and just like that he figured

11113
05:50:40,066 --> 05:50:41,666
he could take this really valuable thing

11114
05:50:41,666 --> 05:50:42,766
and get everyone in continuity

11115
05:50:42,766 --> 05:50:44,300
by just giving it to them for free

11116
05:50:44,600 --> 05:50:45,800
and so by doing that

11117
05:50:45,800 --> 05:50:48,433
he was closing 70 to 80% of people walking in the door

11118
05:50:48,433 --> 05:50:49,566
which is monster

11119
05:50:49,566 --> 05:50:51,733
and he was getting them to sign up at full price

11120
05:50:51,800 --> 05:50:53,600
and my personal benefit

11121
05:50:53,600 --> 05:50:55,600
there's this cool good will feeling of like

11122
05:50:55,600 --> 05:50:57,400
you know what you want this really valuable thing

11123
05:50:57,400 --> 05:50:58,266
I'll just give it to you as a gift

11124
05:50:58,266 --> 05:50:59,166
you sign up as a member

11125
05:50:59,166 --> 05:51:00,800
and here are some benefits to becoming a member

11126
05:51:00,800 --> 05:51:02,366
that you wouldn't even have if you bought this

11127
05:51:02,366 --> 05:51:03,866
so now let's get into description

11128
05:51:03,866 --> 05:51:05,000
so with continuity bonuses

11129
05:51:05,000 --> 05:51:06,700
you give the customer an awesome thing

11130
05:51:06,700 --> 05:51:10,166
if they sign up today typically the bonus itself

11131
05:51:10,166 --> 05:51:11,033
this is key

11132
05:51:11,033 --> 05:51:13,466
has more value than the first continuity payment

11133
05:51:13,500 --> 05:51:14,833
that's really all there is to it

11134
05:51:14,833 --> 05:51:17,100
so he offered this big 600

11135
05:51:17,100 --> 05:51:18,566
800,000 dollar thing

11136
05:51:18,566 --> 05:51:21,133
if you sign up for 200 dollars today

11137
05:51:21,166 --> 05:51:23,233
the first example with the newsletter thing

11138
05:51:23,233 --> 05:51:25,233
he offered this 24 thousand dollar thing

11139
05:51:25,233 --> 05:51:28,966
if you sign up for a trial of a 400 dollar a month

11140
05:51:28,966 --> 05:51:33,266
continuity so bonus is adding value and so for products

11141
05:51:33,266 --> 05:51:35,000
you can give away very small things

11142
05:51:35,000 --> 05:51:37,700
or one big product that compliments the subscription

11143
05:51:38,166 --> 05:51:41,366
for services you can give away a defined program

11144
05:51:41,366 --> 05:51:42,900
onboarding setup

11145
05:51:42,900 --> 05:51:45,500
or features that add value to the core service

11146
05:51:45,500 --> 05:51:46,566
all of those things will be

11147
05:51:46,566 --> 05:51:47,366
things that you can give away

11148
05:51:47,366 --> 05:51:48,833
as bonuses for connoting

11149
05:51:48,833 --> 05:51:50,666
discounts are lower in cost

11150
05:51:50,666 --> 05:51:52,766
so remember that anything you offer for free

11151
05:51:52,766 --> 05:51:54,400
can also be offered as a discount

11152
05:51:54,400 --> 05:51:55,866
free stuff and discounts

11153
05:51:55,866 --> 05:51:57,600
both affect how we make decisions

11154
05:51:57,666 --> 05:52:00,566
so we wanna do both to get the benefits of both

11155
05:52:00,633 --> 05:52:01,900
when making continuity offers

11156
05:52:01,900 --> 05:52:03,900
I prefer to get people to start

11157
05:52:03,900 --> 05:52:05,366
if I add more good stuff

11158
05:52:05,366 --> 05:52:07,866
bonuses and take away bad stuff discounts

11159
05:52:07,900 --> 05:52:10,100
so that's how you do it add more good stuff

11160
05:52:10,100 --> 05:52:11,066
take away bad stuff

11161
05:52:11,066 --> 05:52:13,833
get more people to buy now to make it work better

11162
05:52:13,833 --> 05:52:14,966
add urgency

11163
05:52:15,100 --> 05:52:17,500
only they get that stuff if they join right now

11164
05:52:17,500 --> 05:52:20,800
also you can offer the bonus as a standalone purchase

11165
05:52:20,800 --> 05:52:22,633
or you can only make it available

11166
05:52:22,633 --> 05:52:23,900
if they buy your continuity

11167
05:52:23,900 --> 05:52:24,800
so either of them work

11168
05:52:24,800 --> 05:52:26,400
and I'm gonna show you some really cool math examples

11169
05:52:26,400 --> 05:52:28,266
at the end of this video of price tests

11170
05:52:28,266 --> 05:52:31,466
we've run to generate more cash up front

11171
05:52:31,466 --> 05:52:33,066
or more people taking continuity

11172
05:52:33,066 --> 05:52:35,066
so there's actually some signs I can show you of like

11173
05:52:35,066 --> 05:52:36,400
how much cash do you want up front

11174
05:52:36,400 --> 05:52:38,033
versus how many people do you want to take continuity

11175
05:52:38,033 --> 05:52:39,700
and then what percentage is

11176
05:52:39,700 --> 05:52:40,900
the right percentage to offer

11177
05:52:40,900 --> 05:52:42,633
so you can get the right distribution you want

11178
05:52:42,633 --> 05:52:44,100
and we tested this across a lot of location

11179
05:52:44,100 --> 05:52:45,500
so I feel pretty confident about it

11180
05:52:45,500 --> 05:52:48,866
so on their own continuity offers get less cash now

11181
05:52:48,866 --> 05:52:50,100
remember less cash now

11182
05:52:50,100 --> 05:52:51,766
and that makes it tough for getting customers

11183
05:52:51,766 --> 05:52:54,366
profitably but the way that I use them

11184
05:52:54,366 --> 05:52:55,833
we can still hit our 30 day profit goals

11185
05:52:55,833 --> 05:52:57,100
which I'll explain in a second

11186
05:52:57,200 --> 05:53:00,400
so first I do all my big cash attraction

11187
05:53:00,400 --> 05:53:01,566
up sell and down sell offers

11188
05:53:01,566 --> 05:53:02,966
so I should already be profitable

11189
05:53:02,966 --> 05:53:04,400
I should already have cash from all those original

11190
05:53:04,400 --> 05:53:06,966
offers then continuity offers

11191
05:53:06,966 --> 05:53:08,366
get a little bit of cash

11192
05:53:08,366 --> 05:53:09,866
from the first month's payments

11193
05:53:09,966 --> 05:53:12,233
then I offer people who bought that one month

11194
05:53:12,233 --> 05:53:14,666
a discount for pre paying more months

11195
05:53:14,666 --> 05:53:16,800
this further boosts 30 day profits

11196
05:53:16,800 --> 05:53:18,866
giving me more cash to advertise

11197
05:53:18,866 --> 05:53:20,400
and stacks recurring revenue

11198
05:53:20,500 --> 05:53:21,800
so think about how that goes

11199
05:53:22,000 --> 05:53:23,266
big attraction offer buy X

11200
05:53:23,266 --> 05:53:24,966
y free win your money back whatever

11201
05:53:24,966 --> 05:53:26,666
got it then we do our upsells

11202
05:53:26,666 --> 05:53:28,100
got it then we do our downsells

11203
05:53:28,100 --> 05:53:29,800
got it then we get them into continuity

11204
05:53:29,800 --> 05:53:31,833
really soft pitch we got them on continuity

11205
05:53:31,833 --> 05:53:33,633
we gave them some bonuses in order to say yes

11206
05:53:33,633 --> 05:53:34,966
now that they're on continuity

11207
05:53:34,966 --> 05:53:36,633
we already have the commitment

11208
05:53:36,633 --> 05:53:37,366
we then say hey

11209
05:53:37,366 --> 05:53:38,400
you're already committed

11210
05:53:38,400 --> 05:53:40,000
let's just prepay and save some money

11211
05:53:40,000 --> 05:53:41,600
we stack even more cash forward

11212
05:53:41,600 --> 05:53:43,066
and that's how you just stack stack

11213
05:53:43,066 --> 05:53:43,600
stack stack

11214
05:53:43,600 --> 05:53:44,966
stack you front load the money

11215
05:53:44,966 --> 05:53:45,800
so that you can

11216
05:53:45,800 --> 05:53:47,433
scale your advertising and go to the moon

11217
05:53:47,433 --> 05:53:48,900
alright let's do some examples

11218
05:53:49,100 --> 05:53:51,500
so physical products let's use pet food

11219
05:53:51,500 --> 05:53:52,866
alright so one time bonus

11220
05:53:52,866 --> 05:53:55,300
get every dog toy you've ever made for free

11221
05:53:55,433 --> 05:53:56,600
an 800 dollar value

11222
05:53:56,600 --> 05:53:58,866
when you sign up for our monthly food shipments

11223
05:53:58,866 --> 05:54:02,200
for 59 dollars a month now monthly bonuses

11224
05:54:02,200 --> 05:54:05,066
you'll also get a new dog toy every month as a member

11225
05:54:05,200 --> 05:54:07,733
also cool then it's something else that I can give

11226
05:54:07,900 --> 05:54:10,500
so those are two different kind of bonus

11227
05:54:10,500 --> 05:54:11,466
continuity offers that you can have

11228
05:54:11,466 --> 05:54:13,033
one is upfront to get them to buy

11229
05:54:13,033 --> 05:54:14,500
the other is to get them to stay

11230
05:54:14,633 --> 05:54:16,866
now service short term accelerator offer

11231
05:54:16,866 --> 05:54:19,100
so one time bonus for the short term accelerator

11232
05:54:19,100 --> 05:54:20,700
it costs $1,000 on its own

11233
05:54:20,700 --> 05:54:23,100
get it free when you become a member for $100 a month

11234
05:54:23,300 --> 05:54:26,366
same concept as the gym the bonus package is the VIP

11235
05:54:26,366 --> 05:54:26,700
community

11236
05:54:26,700 --> 05:54:28,900
members enjoy first line access to our events

11237
05:54:29,000 --> 05:54:30,866
longer support hours as in longer

11238
05:54:30,866 --> 05:54:32,100
not longer time period

11239
05:54:32,266 --> 05:54:34,700
uh better support reps and faster response times

11240
05:54:34,700 --> 05:54:36,166
so if you become a VIP member

11241
05:54:36,166 --> 05:54:37,433
not only do you get this big benefit

11242
05:54:37,433 --> 05:54:39,166
you also get this recurring benefit

11243
05:54:39,166 --> 05:54:40,633
of continuing to pay and stay

11244
05:54:40,633 --> 05:54:43,900
digital product offer so one time bonus would be uh

11245
05:54:43,900 --> 05:54:46,833
get all my past 40 newsletters valued at 15,800

11246
05:54:46,833 --> 05:54:49,233
whatever by becoming a member today for only three

11247
05:54:49,233 --> 05:54:51,700
99 a month after 30 day free trial

11248
05:54:51,766 --> 05:54:54,466
lifetime discount plus lifetime bonuses

11249
05:54:54,466 --> 05:54:55,500
if you pay today

11250
05:54:55,500 --> 05:54:58,800
you can lock in a lifetime discount for two 99 a month

11251
05:54:58,800 --> 05:55:00,466
and you get early digital access

11252
05:55:00,466 --> 05:55:02,100
and a physical copy every month

11253
05:55:02,100 --> 05:55:03,400
now important points

11254
05:55:03,433 --> 05:55:05,200
focus on the bonus not the membership

11255
05:55:05,200 --> 05:55:06,366
this is really important

11256
05:55:06,366 --> 05:55:08,966
join my membership program isn't very compelling

11257
05:55:08,966 --> 05:55:11,200
not nearly as compelling as get this free

11258
05:55:11,200 --> 05:55:14,733
valuable thing so advertise the free valuable thing

11259
05:55:14,800 --> 05:55:16,466
then explain the rest of the offer

11260
05:55:16,466 --> 05:55:17,700
once they show interest

11261
05:55:17,700 --> 05:55:20,300
so if I'm talking about the $800 of dog toys

11262
05:55:20,300 --> 05:55:22,533
I advertise my free $800 of dog toys

11263
05:55:22,566 --> 05:55:23,800
not my dog food

11264
05:55:23,800 --> 05:55:26,166
if I'm talking about my six week challenge

11265
05:55:26,166 --> 05:55:27,066
I'm talking about the six week challenge

11266
05:55:27,066 --> 05:55:28,366
they come in I explain the thousand dollar thing

11267
05:55:28,366 --> 05:55:30,700
I say or you can get that whole thing

11268
05:55:30,700 --> 05:55:32,800
and this other thing for less

11269
05:55:32,900 --> 05:55:33,300
that's the idea

11270
05:55:33,300 --> 05:55:35,066
is you advertise the thing you're gonna give away

11271
05:55:35,066 --> 05:55:36,200
not the thing you sell

11272
05:55:36,200 --> 05:55:37,800
bonuses kind of work like upsells

11273
05:55:38,000 --> 05:55:41,066
more of the same you get two years of past newsletters

11274
05:55:41,066 --> 05:55:42,033
by becoming a member

11275
05:55:42,033 --> 05:55:43,066
so they're coming in for newsletters

11276
05:55:43,066 --> 05:55:45,366
so you get more of that thing complementary

11277
05:55:45,366 --> 05:55:47,500
you get nutrition services for free

11278
05:55:47,500 --> 05:55:49,566
when you sign up for one of our fitness memberships

11279
05:55:49,566 --> 05:55:51,300
great that's complementary goes together

11280
05:55:51,300 --> 05:55:53,466
you can have an upgrade which is better right

11281
05:55:53,466 --> 05:55:54,966
you get a free gold membership

11282
05:55:54,966 --> 05:55:56,000
when you buy a bonus membership

11283
05:55:56,000 --> 05:55:57,366
so that's limited availability

11284
05:55:57,366 --> 05:55:59,633
keep your bonuses related to your core offer okay

11285
05:55:59,633 --> 05:56:00,400
this is key

11286
05:56:00,400 --> 05:56:04,233
so if the bonus that you give is too different

11287
05:56:04,233 --> 05:56:06,600
you will attract the wrong types of customers

11288
05:56:06,700 --> 05:56:07,733
so for instance

11289
05:56:07,800 --> 05:56:11,966
don't advertise a free T-shirt to upsell tech services

11290
05:56:11,966 --> 05:56:13,200
that wouldn't make sense

11291
05:56:13,200 --> 05:56:15,500
but advertising a free T-shirt to upsell

11292
05:56:15,500 --> 05:56:17,400
T-shirt printing makes sense

11293
05:56:17,433 --> 05:56:20,566
if I wanted to offer a free fix or get out of jail

11294
05:56:20,566 --> 05:56:21,700
free card for we'll fix something

11295
05:56:21,700 --> 05:56:23,000
that's going wrong with your servers

11296
05:56:23,000 --> 05:56:24,200
that might be a great

11297
05:56:24,200 --> 05:56:26,000
free bonus that I would give away

11298
05:56:26,000 --> 05:56:27,266
that makes sense to naturally

11299
05:56:27,266 --> 05:56:28,533
then upsell tech services

11300
05:56:29,000 --> 05:56:33,000
now make bonuses things you already have and do alright

11301
05:56:33,000 --> 05:56:33,966
so for instance

11302
05:56:34,066 --> 05:56:37,466
the two past years of newsletters cost no extra time

11303
05:56:37,466 --> 05:56:39,633
but are super high value and

11304
05:56:39,633 --> 05:56:41,400
onboarding is something that you have to do

11305
05:56:41,400 --> 05:56:43,100
with a customer or client anyways

11306
05:56:43,100 --> 05:56:45,766
so you might as well slap a price on it

11307
05:56:45,766 --> 05:56:47,333
and give it to him as a bonus

11308
05:56:47,366 --> 05:56:50,300
if you value it they will too and so again

11309
05:56:50,400 --> 05:56:51,233
the whole challenge

11310
05:56:51,233 --> 05:56:52,566
thing that we created back in the day

11311
05:56:52,566 --> 05:56:53,466
the defining programs

11312
05:56:53,466 --> 05:56:55,200
which many service providers offer

11313
05:56:55,233 --> 05:56:57,966
they're usually fundamentally just fancy onboarding

11314
05:56:57,966 --> 05:56:58,400
so

11315
05:56:58,400 --> 05:57:00,500
you can just make sure that people all go through this

11316
05:57:00,500 --> 05:57:01,300
fancy onboarding

11317
05:57:01,300 --> 05:57:02,900
but you put a price associated with it

11318
05:57:02,900 --> 05:57:04,666
so then you get way more people to sign up for your

11319
05:57:04,666 --> 05:57:05,800
continuity alright

11320
05:57:05,833 --> 05:57:07,466
so physical bonuses on digital products

11321
05:57:07,466 --> 05:57:09,466
and digital bonuses with physical products alright

11322
05:57:09,466 --> 05:57:10,600
so if I have a digital membership

11323
05:57:10,600 --> 05:57:11,566
I might offer a hat

11324
05:57:11,566 --> 05:57:14,300
a shirt or tool or something else related to the offer

11325
05:57:14,300 --> 05:57:16,300
now if I have a physical product or service

11326
05:57:16,300 --> 05:57:17,800
like a boxing gym membership

11327
05:57:17,800 --> 05:57:19,000
offering live stream sessions

11328
05:57:19,000 --> 05:57:20,700
can get more people to sign up

11329
05:57:20,700 --> 05:57:23,100
also if I have a digital thing

11330
05:57:23,100 --> 05:57:25,233
I might offer boxing gloves

11331
05:57:25,233 --> 05:57:27,366
that I would give if they buy my digital membership

11332
05:57:27,366 --> 05:57:29,300
so crisscrossing physical and digital

11333
05:57:29,300 --> 05:57:31,966
in my opinion works exceptionally well

11334
05:57:31,966 --> 05:57:33,200
so this strategy

11335
05:57:33,200 --> 05:57:35,200
often lowers the cost of getting a customer

11336
05:57:35,200 --> 05:57:36,666
more than the cost of bonus

11337
05:57:36,933 --> 05:57:39,700
that's the point and so even if someone

11338
05:57:39,700 --> 05:57:41,766
you know takes the bonuses and then runs

11339
05:57:41,766 --> 05:57:43,066
we still typically get

11340
05:57:43,066 --> 05:57:45,633
a lower overall cost to our customers

11341
05:57:45,633 --> 05:57:46,233
in general

11342
05:57:46,233 --> 05:57:48,000
and we can still make it up on everyone else

11343
05:57:48,000 --> 05:57:49,300
if it gets too expensive

11344
05:57:49,300 --> 05:57:51,466
maybe shift your offer and then give that one a try

11345
05:57:51,466 --> 05:57:53,900
but more often than not adding the bonus will

11346
05:57:53,966 --> 05:57:55,766
in the long term net you way more money

11347
05:57:55,766 --> 05:57:57,100
use realistic bonus pricing

11348
05:57:57,100 --> 05:57:59,200
the bigger the value anchor on your bonus

11349
05:57:59,300 --> 05:58:00,900
the more compelling the offer

11350
05:58:00,900 --> 05:58:03,900
but you also have to make the anchor believable alright

11351
05:58:03,900 --> 05:58:06,833
some business owners make up ridiculous values

11352
05:58:06,833 --> 05:58:09,500
don't do that it won't anchor the customer

11353
05:58:09,500 --> 05:58:11,066
and you'll lose trust with them

11354
05:58:11,066 --> 05:58:13,166
so this is a great opportunity to give away products

11355
05:58:13,166 --> 05:58:14,866
that you've sold before in the past

11356
05:58:14,866 --> 05:58:17,300
so then you can anchor on their actual prices

11357
05:58:17,433 --> 05:58:19,800
and use real discounts and bonuses

11358
05:58:19,800 --> 05:58:21,800
so it's like I used to sell this for two grand

11359
05:58:22,066 --> 05:58:25,500
and here's receipts of me selling this for two grand

11360
05:58:25,500 --> 05:58:27,766
would you like it for free if you sign up for 200 bucks

11361
05:58:27,833 --> 05:58:28,866
a lot of people say yes to that

11362
05:58:28,866 --> 05:58:31,233
but that's ethical and it's real and it's believable

11363
05:58:31,233 --> 05:58:33,233
you can bonus customers by giving them titles

11364
05:58:33,233 --> 05:58:34,500
this is a little clever

11365
05:58:34,500 --> 05:58:36,700
so you can give customers titles

11366
05:58:37,066 --> 05:58:39,700
uh when they stay 3 months or 6 months

11367
05:58:39,700 --> 05:58:42,000
or 12 months and beyond so things like silver gold

11368
05:58:42,000 --> 05:58:42,800
diamond double diamond

11369
05:58:42,800 --> 05:58:44,566
etcetera and so they get status in the community

11370
05:58:44,566 --> 05:58:46,666
and you can have some little frills and that

11371
05:58:46,666 --> 05:58:48,200
that they get some little bonuses

11372
05:58:48,233 --> 05:58:50,933
that are associated with those titles

11373
05:58:50,966 --> 05:58:53,166
but the main thing is if they know that in two months

11374
05:58:53,166 --> 05:58:55,866
they're gonna get this this upgrade in status that will

11375
05:58:55,866 --> 05:58:58,733
that can drag people through the continuity

11376
05:58:58,900 --> 05:59:02,000
and you can typically extend each time

11377
05:59:02,000 --> 05:59:03,966
how long before you give them the next kind of

11378
05:59:03,966 --> 05:59:06,233
reinforcing event so in the beginning

11379
05:59:06,233 --> 05:59:07,466
maybe once they get to 90 days

11380
05:59:07,466 --> 05:59:07,800
if you know

11381
05:59:07,800 --> 05:59:09,400
most people turn at you know

11382
05:59:09,400 --> 05:59:11,433
two months then you put the thing at three months

11383
05:59:11,433 --> 05:59:13,266
or two and a half months right

11384
05:59:13,566 --> 05:59:15,366
so that then that pulls poor people through

11385
05:59:15,366 --> 05:59:16,500
now once they get to the third month

11386
05:59:16,500 --> 05:59:16,833
it's like hey

11387
05:59:16,833 --> 05:59:17,700
you got this boosting status

11388
05:59:17,700 --> 05:59:18,666
you get some other upgrades

11389
05:59:18,666 --> 05:59:21,666
and then the next one might be at month eight right

11390
05:59:21,666 --> 05:59:22,100
it's like okay

11391
05:59:22,100 --> 05:59:23,300
so that's five months later

11392
05:59:23,300 --> 05:59:24,500
and once it's eight then it's like okay

11393
05:59:24,500 --> 05:59:25,833
the next one happens in a year

11394
05:59:25,833 --> 05:59:28,200
so you can keep bumping out how long it is

11395
05:59:28,200 --> 05:59:30,366
just like video games the first level is really easy

11396
05:59:30,366 --> 05:59:31,500
second level is a little bit harder

11397
05:59:31,500 --> 05:59:33,000
when you go from level 99 to level hundred

11398
05:59:33,000 --> 05:59:34,400
it takes you more time than it took you to get to

11399
05:59:34,400 --> 05:59:35,500
the first 20 levels

11400
05:59:35,700 --> 05:59:38,233
same idea so a good friend of mine actually does this

11401
05:59:38,233 --> 05:59:40,166
and after a while she found that her customers

11402
05:59:40,166 --> 05:59:42,400
cared more about the title than any other bonus

11403
05:59:42,400 --> 05:59:44,466
that she gave and she told me that

11404
05:59:44,466 --> 05:59:47,366
they even introduced themselves to her by their title

11405
05:59:47,433 --> 05:59:50,033
so if you can't think of something to give them

11406
05:59:50,033 --> 05:59:50,800
at the very least

11407
05:59:50,800 --> 05:59:52,566
you can just call them something special

11408
05:59:52,566 --> 05:59:54,433
and so people would come to her and be like hi

11409
05:59:54,433 --> 05:59:57,766
I'm double Diamond or hey I'm a gold right

11410
05:59:57,766 --> 06:00:01,000
it's like hey if it's it

11411
06:00:01,066 --> 06:00:03,300
status is the cheapest thing that you can give someone

11412
06:00:03,300 --> 06:00:04,966
and also many people value it

11413
06:00:04,966 --> 06:00:06,166
more than just about anything else

11414
06:00:06,166 --> 06:00:07,200
alright uh

11415
06:00:07,200 --> 06:00:08,266
you can make free bonuses

11416
06:00:08,266 --> 06:00:10,466
discounts and make discounts free bonuses

11417
06:00:10,600 --> 06:00:12,566
so hear me out so free bonus

11418
06:00:12,633 --> 06:00:13,800
become a member for $200

11419
06:00:13,800 --> 06:00:15,266
and you get this thousand dollar program

11420
06:00:15,266 --> 06:00:17,133
as a free bonus steep discount

11421
06:00:17,266 --> 06:00:19,300
get the thousand dollar program for $1

11422
06:00:19,300 --> 06:00:21,033
if you become a member for 200

11423
06:00:21,033 --> 06:00:23,433
so again the free plus discount thing you can make

11424
06:00:23,433 --> 06:00:24,933
you can interchange these things

11425
06:00:24,933 --> 06:00:26,533
when making your continuity offer

11426
06:00:26,600 --> 06:00:27,766
anchor the bonuses

11427
06:00:27,766 --> 06:00:30,866
first sell them the benefits of the amazing bonus

11428
06:00:30,866 --> 06:00:33,300
not the continuity offer the bonus

11429
06:00:33,300 --> 06:00:36,000
then use your high value bonus as an anchor

11430
06:00:36,066 --> 06:00:37,566
it may shock them and that's okay

11431
06:00:37,566 --> 06:00:38,733
remember the anchor upsell

11432
06:00:38,766 --> 06:00:40,900
same idea we can still use it as an anchor

11433
06:00:40,900 --> 06:00:42,666
now the higher up we go

11434
06:00:42,866 --> 06:00:44,266
then the more it's gonna become an anchor

11435
06:00:44,266 --> 06:00:45,966
and less likely for them to buy it

11436
06:00:45,966 --> 06:00:47,433
the lower it is the more people buy

11437
06:00:47,433 --> 06:00:49,166
and I'll give you the exact math on that in a second

11438
06:00:49,166 --> 06:00:50,766
because when you ask hey

11439
06:00:50,766 --> 06:00:53,466
do you want to know how you can get this for free

11440
06:00:53,600 --> 06:00:56,633
if they do which they will explain

11441
06:00:56,633 --> 06:00:58,266
hey just become a VIP member today

11442
06:00:58,266 --> 06:01:01,300
and you'll get it all as a free gift just for joining

11443
06:01:01,300 --> 06:01:04,000
or you can just buy it on its own for XXX

11444
06:01:04,033 --> 06:01:06,500
which would you prefer so someone's doing the math

11445
06:01:06,500 --> 06:01:07,200
they're like shoot

11446
06:01:07,200 --> 06:01:10,233
this thing's a grand or I get the grand thing for free

11447
06:01:10,233 --> 06:01:11,766
when I sign up for 200 bucks a month

11448
06:01:12,266 --> 06:01:14,366
well basically at month five I quote break even

11449
06:01:14,366 --> 06:01:16,466
but I still get all the value of being a member well

11450
06:01:16,466 --> 06:01:18,266
I'll do that now

11451
06:01:18,300 --> 06:01:20,666
if that price was $300

11452
06:01:20,800 --> 06:01:22,900
or you get the 300 dollar thing for free

11453
06:01:22,900 --> 06:01:24,166
when you do the 200 dollar membership

11454
06:01:24,166 --> 06:01:25,433
you might be like hey

11455
06:01:25,433 --> 06:01:26,666
I'll just do the 300 dollar thing

11456
06:01:26,666 --> 06:01:28,833
so how big you price the difference

11457
06:01:28,833 --> 06:01:31,366
will indicate how many people take the upfront cash

11458
06:01:31,366 --> 06:01:33,533
versus the continuity offer

11459
06:01:33,533 --> 06:01:35,800
and so more bonuses get more people to join

11460
06:01:35,800 --> 06:01:37,800
that's the TLDR so after you ask them

11461
06:01:37,800 --> 06:01:39,233
if they want to know how to get it for free

11462
06:01:39,233 --> 06:01:41,166
you tell them they can when they join

11463
06:01:41,200 --> 06:01:44,366
then you say on top of that when you become a member

11464
06:01:44,366 --> 06:01:45,766
you'll get amazing thing 1

11465
06:01:45,766 --> 06:01:47,400
amazing thing 2 amazing thing 3

11466
06:01:47,400 --> 06:01:50,000
and mention the individual dollar values of each

11467
06:01:50,000 --> 06:01:51,966
to anchor that value and actually

11468
06:01:51,966 --> 06:01:54,766
it further stacks the value of the 200 dollar thing

11469
06:01:54,766 --> 06:01:56,066
and so stacking bonuses this way

11470
06:01:56,066 --> 06:01:57,166
gets even more people to join

11471
06:01:57,166 --> 06:01:58,700
the continuity so here's the math example

11472
06:01:58,700 --> 06:02:00,066
I told you that I was gonna break down

11473
06:02:00,066 --> 06:02:03,533
so we ran this test and I can only say that this works

11474
06:02:03,666 --> 06:02:06,766
for brick and mortar fitness sales

11475
06:02:06,766 --> 06:02:09,033
in this offer structure that being said

11476
06:02:09,033 --> 06:02:10,766
if I were a betting man which I am

11477
06:02:10,766 --> 06:02:13,666
I would bet this pretty much transfers across uh

11478
06:02:13,666 --> 06:02:15,666
domains especially service businesses

11479
06:02:15,666 --> 06:02:17,633
pricing for continuity versus offering cash

11480
06:02:17,633 --> 06:02:18,933
so for whatever reason

11481
06:02:19,066 --> 06:02:21,700
people pick one time payments over continuity

11482
06:02:21,700 --> 06:02:25,300
even with higher one time payments and to be fair

11483
06:02:25,300 --> 06:02:27,266
I'm kind of this way so if someone says hey

11484
06:02:27,266 --> 06:02:28,566
do you want to sign up for membership

11485
06:02:28,566 --> 06:02:30,033
or do you just want to sign up for one month

11486
06:02:30,033 --> 06:02:31,833
one month is twice the price I might be like

11487
06:02:31,833 --> 06:02:33,200
I don't feel like dealing with the cancellation

11488
06:02:33,200 --> 06:02:35,233
just like just put me on the one month thing

11489
06:02:35,233 --> 06:02:38,100
and so offer a higher one time payment option

11490
06:02:38,100 --> 06:02:40,700
this way some customers will make you more money today

11491
06:02:40,700 --> 06:02:41,900
while other customers stack

11492
06:02:41,900 --> 06:02:43,266
recurring revenue for tomorrow

11493
06:02:43,266 --> 06:02:45,266
so we change the price depending on our goals

11494
06:02:45,266 --> 06:02:47,033
I've tested this a ton at least for me

11495
06:02:47,033 --> 06:02:49,166
and the data in this range looks really clear

11496
06:02:49,166 --> 06:02:53,200
so this is basically the take rates um

11497
06:02:53,200 --> 06:02:55,133
based on the price so this is the price

11498
06:02:55,266 --> 06:02:57,133
so if we're three times the price

11499
06:02:57,200 --> 06:02:58,466
you're gonna have almost 90 you know

11500
06:02:58,466 --> 06:03:01,266
90% of people taking continuity

11501
06:03:01,700 --> 06:03:05,733
if you're you know 1.3 times the price

11502
06:03:05,800 --> 06:03:07,900
then you're gonna have 50% of people taking cotton U

11503
06:03:07,900 --> 06:03:11,000
d and 50% of people taking the one time offer

11504
06:03:11,266 --> 06:03:13,700
so this is the actual data as it broke out

11505
06:03:13,700 --> 06:03:16,833
so if you want to get 50% of people to take continuity

11506
06:03:16,833 --> 06:03:19,700
then you make the standard offer 1.33 times

11507
06:03:19,700 --> 06:03:22,366
which in my personal experience feels about right

11508
06:03:22,366 --> 06:03:24,066
so the example is hey

11509
06:03:24,066 --> 06:03:27,733
this one time program is 400 bucks

11510
06:03:27,966 --> 06:03:29,600
which would then equate to 2

11511
06:03:29,600 --> 06:03:33,000
66 a month if it was 6 weeks or 1

11512
06:03:33,000 --> 06:03:36,866
99 a month membership so I say pay 400 for 6 weeks

11513
06:03:36,866 --> 06:03:38,200
or you can become a member for 1

11514
06:03:38,200 --> 06:03:41,766
99 a month at that point at that price point 50

11515
06:03:41,766 --> 06:03:46,433
50 will take the a 400 dollar offer versus doing 1

11516
06:03:46,433 --> 06:03:47,466
99 a month

11517
06:03:47,666 --> 06:03:51,566
even though this is 1.33 times more expensive

11518
06:03:51,966 --> 06:03:54,100
and so for me I find this the most important number

11519
06:03:54,100 --> 06:03:55,500
because that tells you the break

11520
06:03:55,500 --> 06:03:58,200
even price in the market so people basically value

11521
06:03:58,200 --> 06:03:59,466
at least in this particular setting

11522
06:03:59,466 --> 06:04:00,600
when we tested this

11523
06:04:00,600 --> 06:04:03,366
that people value not being on continuity

11524
06:04:03,500 --> 06:04:05,700
as a 33% premium

11525
06:04:05,700 --> 06:04:06,766
that they're willing to pay on the price

11526
06:04:06,766 --> 06:04:08,000
to not have to deal with cancellations

11527
06:04:08,000 --> 06:04:08,900
or anything like that

11528
06:04:08,900 --> 06:04:10,566
I find that to be very interesting

11529
06:04:10,866 --> 06:04:13,433
so if we want 60% to choose continuity

11530
06:04:13,433 --> 06:04:18,033
we make it 1.66 times more if we want 70%

11531
06:04:18,033 --> 06:04:22,066
we double it if we want 80% to choose continuity

11532
06:04:22,066 --> 06:04:23,533
we 2.3 exit

11533
06:04:23,566 --> 06:04:25,566
if we want 90% of people to choose continuity

11534
06:04:25,566 --> 06:04:28,000
we 2.66 exit so basically

11535
06:04:28,000 --> 06:04:29,066
once you're at about 3 x

11536
06:04:29,066 --> 06:04:30,800
the price of what they would have to pay

11537
06:04:30,800 --> 06:04:32,533
almost everybody takes the continuity

11538
06:04:32,600 --> 06:04:33,600
but if you're like shoot

11539
06:04:33,600 --> 06:04:36,100
I would rather get some of that cash upfront because

11540
06:04:36,100 --> 06:04:39,100
you know these these 600 dollar payments they add up

11541
06:04:39,100 --> 06:04:40,633
it's not bad well

11542
06:04:40,633 --> 06:04:43,866
fine if you have 70% of people choosing continuity

11543
06:04:43,866 --> 06:04:46,500
but 30% take something that's twice as expensive

11544
06:04:46,500 --> 06:04:48,666
you're actually getting a decent amount of cash upfront

11545
06:04:48,666 --> 06:04:50,100
and so you just need to play with

11546
06:04:50,100 --> 06:04:51,633
how much cash do I need

11547
06:04:51,633 --> 06:04:53,900
so that I can offset my cost to acquire customers

11548
06:04:53,900 --> 06:04:55,900
and then I can stack as much recurring as I want

11549
06:04:55,900 --> 06:04:57,800
and this is the actual data that we have

11550
06:04:57,800 --> 06:05:00,066
the exact numbers for this matter

11551
06:05:00,066 --> 06:05:01,266
less than the principle

11552
06:05:01,433 --> 06:05:03,033
the smaller the standalone price

11553
06:05:03,033 --> 06:05:04,233
compared to the continuity price

11554
06:05:04,233 --> 06:05:05,733
the more people buy the standalone

11555
06:05:05,800 --> 06:05:07,233
the larger the standalone price

11556
06:05:07,233 --> 06:05:09,700
the bonus price compared to the continuity price

11557
06:05:09,700 --> 06:05:10,900
the more people choose continuity

11558
06:05:10,900 --> 06:05:13,000
so if you want more cash up front

11559
06:05:13,000 --> 06:05:14,900
make bonuses and continuity plus bonuses

11560
06:05:14,900 --> 06:05:15,900
separate offers

11561
06:05:15,966 --> 06:05:19,033
make the bonus offer only a single payment

11562
06:05:19,033 --> 06:05:22,866
that's 33 to 266% more expensive than the first month

11563
06:05:22,866 --> 06:05:25,000
Continuity plus bonus the bigger the price difference

11564
06:05:25,000 --> 06:05:27,233
the fewer standalone purchases you'll have

11565
06:05:27,233 --> 06:05:29,033
but the more money you'll make up front

11566
06:05:29,033 --> 06:05:31,266
from each of them and based on the data that I shared

11567
06:05:31,266 --> 06:05:33,666
people pay 33% more to avoid continuity

11568
06:05:33,666 --> 06:05:34,366
in other words

11569
06:05:34,366 --> 06:05:36,566
if you charge 33% more for the one time bonus

11570
06:05:36,566 --> 06:05:39,033
half will buy it if you want even more cash

11571
06:05:39,033 --> 06:05:41,266
offer bulk prepaid discounts

11572
06:05:41,333 --> 06:05:42,466
so both continuity

11573
06:05:42,466 --> 06:05:44,966
upsales boost 30 day profits by a lot

11574
06:05:44,966 --> 06:05:46,066
alright and I alluded to it earlier

11575
06:05:46,066 --> 06:05:46,766
but I'm saying it again

11576
06:05:46,766 --> 06:05:48,033
cause it's so freaking important

11577
06:05:48,033 --> 06:05:51,033
so you offer buy 5 months get one free

11578
06:05:51,033 --> 06:05:54,433
only one out of every 8 people have to take the Upsale

11579
06:05:54,433 --> 06:05:57,200
to raise 30 day profits by 50%

11580
06:05:57,566 --> 06:05:59,833
that can make or break your money model

11581
06:05:59,833 --> 06:06:01,133
so think about that

11582
06:06:01,233 --> 06:06:05,100
only one out of eight people need to take your buy five

11583
06:06:05,100 --> 06:06:08,700
get one free for you to raise by 50%

11584
06:06:08,700 --> 06:06:10,566
the cash you make in the first 30 days

11585
06:06:11,800 --> 06:06:13,500
make the damn offer no

11586
06:06:13,500 --> 06:06:14,766
the laws of discounting apply

11587
06:06:14,766 --> 06:06:17,000
the larger the discount the more people would take it

11588
06:06:17,000 --> 06:06:19,900
so if I say buy 5 get uh get one

11589
06:06:19,900 --> 06:06:22,000
I could also say buy six get six

11590
06:06:22,000 --> 06:06:22,466
and I bet you

11591
06:06:22,466 --> 06:06:24,166
I get a hell of a lot more people take it

11592
06:06:24,166 --> 06:06:26,700
and I might double or triple my upfront cash

11593
06:06:26,700 --> 06:06:28,466
so this actually takes continuity

11594
06:06:28,466 --> 06:06:30,233
and turns it into yet another

11595
06:06:30,233 --> 06:06:32,200
upfront cash play that you can do

11596
06:06:32,200 --> 06:06:34,900
to offset acquisition cost and scale your advertising

11597
06:06:34,900 --> 06:06:36,066
if you want commitments

11598
06:06:36,066 --> 06:06:37,566
you can pair the bonus with a commitment

11599
06:06:37,566 --> 06:06:39,300
so here's an example so

11600
06:06:39,300 --> 06:06:42,033
only allow customers to get the bonus if they join

11601
06:06:42,033 --> 06:06:44,233
and commit to three six or 12 months

11602
06:06:44,233 --> 06:06:46,000
so you get more people to commit this way

11603
06:06:46,000 --> 06:06:47,166
but fewer people will take it

11604
06:06:47,166 --> 06:06:48,433
at least compared to giving it to everyone else

11605
06:06:48,433 --> 06:06:50,233
so I'll say it this way so

11606
06:06:50,233 --> 06:06:52,300
the original version that I showed you on that chart

11607
06:06:52,300 --> 06:06:53,666
was hey

11608
06:06:53,866 --> 06:06:56,566
buy the you can either buy this thing for 500 bucks

11609
06:06:56,566 --> 06:06:58,833
whatever it is or you can get the 500 dollar thing

11610
06:06:58,833 --> 06:07:00,866
when you join our membership for 200 dollars a month

11611
06:07:00,866 --> 06:07:02,200
that's with zero commitment

11612
06:07:02,200 --> 06:07:05,733
I could say you can buy this thing for $500

11613
06:07:05,766 --> 06:07:06,900
or if you become a member

11614
06:07:06,900 --> 06:07:07,966
and you commit for six months

11615
06:07:07,966 --> 06:07:09,000
we'll give it to you for free

11616
06:07:09,000 --> 06:07:12,400
so then I lock in six months as the sale

11617
06:07:12,566 --> 06:07:14,800
I get them to to say yes to an extended term

11618
06:07:14,800 --> 06:07:16,500
so it's still more money than here

11619
06:07:16,633 --> 06:07:18,100
than what I would get that 500 dollars

11620
06:07:18,100 --> 06:07:20,166
so I basically give a 500 dollar thing to them

11621
06:07:20,166 --> 06:07:21,433
to get them to say that they'll give me

11622
06:07:21,433 --> 06:07:22,666
twelve hundred dollars a commitment

11623
06:07:22,666 --> 06:07:25,433
or 24 dollars if I make it a year

11624
06:07:25,433 --> 06:07:26,833
and so you can also

11625
06:07:26,833 --> 06:07:28,766
if you want way more people in continuity

11626
06:07:28,766 --> 06:07:30,800
you can just incentivize them to take continuity

11627
06:07:30,800 --> 06:07:31,833
so that being said

11628
06:07:31,833 --> 06:07:33,766
in the beginning if you're not sure what to do

11629
06:07:33,766 --> 06:07:35,266
just offer the bonus as standalone

11630
06:07:35,266 --> 06:07:36,800
and then have continuity month to month

11631
06:07:36,800 --> 06:07:37,933
just to make this easy for you

11632
06:07:37,933 --> 06:07:39,466
so here's some summary points uh

11633
06:07:39,466 --> 06:07:40,366
with continuity bonuses

11634
06:07:40,366 --> 06:07:41,500
you give the customer an awesome thing

11635
06:07:41,500 --> 06:07:43,066
if they sign up today typically

11636
06:07:43,066 --> 06:07:44,766
the bonus itself has more value than the first

11637
06:07:44,766 --> 06:07:45,666
continuity payment

11638
06:07:45,766 --> 06:07:48,100
if you use continuity as an attraction offer

11639
06:07:48,100 --> 06:07:49,566
advertise what you give away

11640
06:07:49,566 --> 06:07:50,900
not what you sell as continuity

11641
06:07:50,900 --> 06:07:53,066
advertise the bonus not the membership

11642
06:07:53,066 --> 06:07:55,900
make your bonus related to your core offer

11643
06:07:55,900 --> 06:07:57,000
so you engage the right leads

11644
06:07:57,000 --> 06:07:59,166
if I say you know I'm giving away dog toys

11645
06:07:59,166 --> 06:08:00,533
I wanna sell dog stuff

11646
06:08:00,766 --> 06:08:01,800
you don't want to give away t shirts

11647
06:08:01,800 --> 06:08:04,033
to sell tech services if possible

11648
06:08:04,033 --> 06:08:06,100
make your bonuses stuff you already have

11649
06:08:06,100 --> 06:08:07,800
and do this way you don't need to change your business

11650
06:08:07,800 --> 06:08:09,066
in order to accommodate the bonus

11651
06:08:09,066 --> 06:08:10,666
more people start continuity

11652
06:08:10,666 --> 06:08:14,100
if you add more bonuses and take away more bad stuff

11653
06:08:14,100 --> 06:08:17,166
in other words add more discounts to add bonuses

11654
06:08:17,166 --> 06:08:21,100
add more good stuff only if they sign up to discount

11655
06:08:21,100 --> 06:08:23,566
take away the cost of actual products

11656
06:08:23,566 --> 06:08:25,766
services or features that you normally sell

11657
06:08:26,200 --> 06:08:28,200
sell the value of the bonus before

11658
06:08:28,200 --> 06:08:29,833
telling them how they can get it for free

11659
06:08:29,833 --> 06:08:31,966
this is super important people mess this one up

11660
06:08:32,166 --> 06:08:33,900
you have to really you have to

11661
06:08:33,966 --> 06:08:36,266
you have to sell it as though it's a standalone offer

11662
06:08:36,266 --> 06:08:37,800
it's just like the anchor

11663
06:08:38,000 --> 06:08:40,100
if you don't seriously sell it

11664
06:08:40,100 --> 06:08:41,766
people won't seriously consider it

11665
06:08:41,766 --> 06:08:43,000
they have to seriously consider it

11666
06:08:43,000 --> 06:08:44,400
and then they will be incentivized

11667
06:08:44,400 --> 06:08:46,100
when you say now that you're sold on it

11668
06:08:46,100 --> 06:08:47,666
do you wanna know how you can get it for free now

11669
06:08:47,666 --> 06:08:49,933
they're gonna wanna take the continuity offer bonuses

11670
06:08:50,033 --> 06:08:52,233
as standalone option for more upfront cash

11671
06:08:52,233 --> 06:08:55,000
so you can sell them on the bonus and then just say

11672
06:08:55,000 --> 06:08:55,233
cool

11673
06:08:55,233 --> 06:08:57,466
the only way to get that is if you sign up as a member

11674
06:08:57,733 --> 06:09:00,366
you can do that totally up to you um

11675
06:09:00,433 --> 06:09:01,866
but if you want to have some offer cash

11676
06:09:01,866 --> 06:09:02,666
which a lot of people do

11677
06:09:02,666 --> 06:09:03,666
especially if you're advertising

11678
06:09:03,666 --> 06:09:05,266
this is especially important for small businesses

11679
06:09:05,266 --> 06:09:07,700
and local then allow

11680
06:09:07,700 --> 06:09:09,800
allow them to buy the sandal and offer

11681
06:09:09,800 --> 06:09:11,600
and you just price it based on how much cash you need

11682
06:09:11,600 --> 06:09:14,166
if you want half the people to take the sandal offer

11683
06:09:14,166 --> 06:09:15,700
price it at 33% above

11684
06:09:15,733 --> 06:09:18,300
and to boost offering cash even more

11685
06:09:18,300 --> 06:09:20,700
you can offer anybody who signs up for continuity

11686
06:09:20,700 --> 06:09:22,200
to prepay for the next 6 months

11687
06:09:22,200 --> 06:09:23,566
or the next year if they buy in bulk

11688
06:09:23,566 --> 06:09:25,100
you basically do a buy X

11689
06:09:25,100 --> 06:09:28,366
get y free as your upsell on the back of continuity

11690
06:09:28,366 --> 06:09:29,966
and you're like wait a second yes

11691
06:09:30,100 --> 06:09:32,400
you can move the offers around in terms of your order

11692
06:09:32,400 --> 06:09:33,533
this is where it gets fun

11693
06:09:33,800 --> 06:09:37,266
and that my friends is how call of duty bonuses work

11694
06:09:39,266 --> 06:09:42,166
alright so that was call of duty bonus

11695
06:09:42,366 --> 06:09:44,166
let's talk about continuity discounts

11696
06:09:44,166 --> 06:09:47,300
so super common in the continuity world and there's a

11697
06:09:47,300 --> 06:09:48,400
I don't say right and wrong way

11698
06:09:48,400 --> 06:09:49,833
but there's at least a way that I like to do them

11699
06:09:49,833 --> 06:09:51,300
versus how everyone else does them

11700
06:09:51,300 --> 06:09:53,033
so this is my little visual look

11701
06:09:53,033 --> 06:09:56,000
you get this free time if you do this commitment

11702
06:09:56,200 --> 06:09:58,966
get X y free with y commitment very simple alright

11703
06:09:58,966 --> 06:09:59,966
but there are cool

11704
06:09:59,966 --> 06:10:01,500
a bunch of very cool things that I've done

11705
06:10:01,500 --> 06:10:01,600
cause

11706
06:10:01,600 --> 06:10:03,233
I've been in the contract world for a lot of my life

11707
06:10:03,233 --> 06:10:05,900
and so there's some neat stuff that I can show you so

11708
06:10:05,900 --> 06:10:06,700
um

11709
06:10:07,433 --> 06:10:08,500
this is less how I Learned it

11710
06:10:08,500 --> 06:10:09,700
but one of my favorite stories

11711
06:10:09,700 --> 06:10:10,700
young neighbor of mine

11712
06:10:10,700 --> 06:10:13,266
when I moved into our neighborhood in Austin

11713
06:10:13,433 --> 06:10:15,500
um he had exited a waste management company

11714
06:10:15,500 --> 06:10:19,100
so trash and you know I walked outside

11715
06:10:19,100 --> 06:10:20,233
I meet the guy

11716
06:10:20,233 --> 06:10:23,466
he seems totally salty the earth awesome dude

11717
06:10:23,600 --> 06:10:24,266
and so I was like

11718
06:10:24,266 --> 06:10:25,800
tell me your story like how this all happened

11719
06:10:25,800 --> 06:10:26,500
he's like oh dude

11720
06:10:26,500 --> 06:10:28,666
I maxed out my credit cards for an entire year

11721
06:10:28,666 --> 06:10:29,966
my I asked my whole family for money

11722
06:10:29,966 --> 06:10:31,166
none of them gave me any money

11723
06:10:31,166 --> 06:10:33,200
I maxed out everything I had um

11724
06:10:33,200 --> 06:10:35,533
and what I did was I just went to all the big

11725
06:10:35,633 --> 06:10:36,966
you know apartment buildings and I said

11726
06:10:36,966 --> 06:10:38,566
I'll give you a year of service for free

11727
06:10:38,566 --> 06:10:39,566
if you switch over to me

11728
06:10:39,566 --> 06:10:41,100
if you sign a five year agreement

11729
06:10:41,166 --> 06:10:42,633
so basically a six year agreement

11730
06:10:42,633 --> 06:10:45,266
one year free and then five years on the back

11731
06:10:45,500 --> 06:10:47,166
so he was able to do that

11732
06:10:47,166 --> 06:10:48,900
and he got all these big apartment buildings over

11733
06:10:48,900 --> 06:10:50,866
but it also meant that he had to deliver services

11734
06:10:50,866 --> 06:10:52,766
for a year before getting paid

11735
06:10:52,866 --> 06:10:55,533
so talk about like very tough cash flow cycle

11736
06:10:55,600 --> 06:10:58,166
but he was able to do it and then as a result

11737
06:10:58,166 --> 06:11:00,100
he was able to eat up a ton of market share

11738
06:11:00,100 --> 06:11:02,200
and they ended up selling to a national conglomerate

11739
06:11:02,200 --> 06:11:03,700
and making a ton of money for it

11740
06:11:03,700 --> 06:11:06,433
and so he had this like big Ferrari in his driveway

11741
06:11:06,433 --> 06:11:07,566
and was just like a normal dude

11742
06:11:07,566 --> 06:11:09,066
and it was it was a really cool guy

11743
06:11:09,066 --> 06:11:12,833
um and so that's fundamentally what he did

11744
06:11:12,833 --> 06:11:15,833
so this was a discount continuity play

11745
06:11:15,833 --> 06:11:16,833
it says bonus it should say

11746
06:11:16,833 --> 06:11:18,266
it should say discount there we go

11747
06:11:18,300 --> 06:11:19,633
so here's the description

11748
06:11:19,633 --> 06:11:20,300
here's how it works

11749
06:11:20,300 --> 06:11:21,966
to make a one time continuity discount

11750
06:11:21,966 --> 06:11:23,600
you give products or services away for free

11751
06:11:23,600 --> 06:11:25,466
if the customer commits to buying more products

11752
06:11:25,466 --> 06:11:26,666
and services overtime

11753
06:11:26,733 --> 06:11:27,500
makes sense

11754
06:11:27,500 --> 06:11:29,466
so this can attract loads of potential customers

11755
06:11:29,466 --> 06:11:32,100
and makes a very easy sale that anyone can close

11756
06:11:32,200 --> 06:11:32,866
if you look around

11757
06:11:32,866 --> 06:11:34,700
you see this offer in many different industries

11758
06:11:34,766 --> 06:11:36,566
so think internet pool cleaning

11759
06:11:36,566 --> 06:11:38,166
gym memberships landscaping

11760
06:11:38,166 --> 06:11:40,966
anything that's rentable storage leases

11761
06:11:40,966 --> 06:11:42,433
get your first two months free

11762
06:11:42,433 --> 06:11:43,633
if you sign up for a year

11763
06:11:43,633 --> 06:11:46,100
things like that you can make this work in any business

11764
06:11:46,100 --> 06:11:48,100
as long as you know two things

11765
06:11:48,100 --> 06:11:50,433
No. 1 is first how you will apply the discount

11766
06:11:50,433 --> 06:11:51,366
you can do it in four ways

11767
06:11:51,366 --> 06:11:53,100
and I'll show you all four second

11768
06:11:53,100 --> 06:11:54,800
your cancellation policy because

11769
06:11:54,800 --> 06:11:56,566
a lot of people don't always keep their commitments

11770
06:11:56,566 --> 06:11:58,166
so let me give you some examples

11771
06:11:58,266 --> 06:12:00,266
so this is the first way that you can do

11772
06:12:00,266 --> 06:12:02,166
a continuity discount so upfront

11773
06:12:02,166 --> 06:12:03,600
you can apply the discount upfront

11774
06:12:03,600 --> 06:12:05,233
and push out the term as in

11775
06:12:05,233 --> 06:12:08,000
the official time starts after the free time ends

11776
06:12:08,000 --> 06:12:09,300
so in the story that I gave

11777
06:12:09,300 --> 06:12:10,466
he gave a year for free

11778
06:12:10,466 --> 06:12:12,100
and then he had five years on the back

11779
06:12:12,100 --> 06:12:14,366
so he basically gave 20% away

11780
06:12:14,366 --> 06:12:15,966
here three months free

11781
06:12:15,966 --> 06:12:17,866
12 months on the back now

11782
06:12:17,866 --> 06:12:19,666
this works best in industries that have

11783
06:12:19,666 --> 06:12:21,800
successful histories of reinforcing contracts

11784
06:12:21,800 --> 06:12:23,233
so cell phone carriers can do that

11785
06:12:23,233 --> 06:12:24,900
because they'll cut off your cell phone stuff

11786
06:12:25,233 --> 06:12:26,966
storage works well with this because they'll

11787
06:12:26,966 --> 06:12:28,166
they have your stuff

11788
06:12:28,166 --> 06:12:30,233
real estate works well because they'll kick you out

11789
06:12:30,233 --> 06:12:32,233
cars work well because they can take your car back

11790
06:12:32,233 --> 06:12:33,866
right anything that has collateral

11791
06:12:33,866 --> 06:12:35,566
tends to work really well with this type of model

11792
06:12:35,566 --> 06:12:37,500
which is why a lot of them do it all right

11793
06:12:37,500 --> 06:12:39,800
now if you have historically high turn

11794
06:12:39,800 --> 06:12:40,966
then skip this one cause

11795
06:12:40,966 --> 06:12:42,466
it means that you don't have a lot of enforcement

11796
06:12:42,466 --> 06:12:44,366
and this is probably not the best way to do it

11797
06:12:44,566 --> 06:12:47,700
now this does not get customers profitably

11798
06:12:47,700 --> 06:12:47,966
all right

11799
06:12:47,966 --> 06:12:49,633
so he lost a bunch of money for the first year

11800
06:12:49,633 --> 06:12:51,033
and then he made a bunch afterwards

11801
06:12:51,033 --> 06:12:54,066
but it does get customers it delays cash

11802
06:12:54,066 --> 06:12:55,833
so if you want more profitable options

11803
06:12:55,833 --> 06:12:57,666
continue on down our list

11804
06:12:57,666 --> 06:12:59,566
a fun note here is that

11805
06:12:59,566 --> 06:13:01,166
instead of giving time away for free

11806
06:13:01,166 --> 06:13:03,633
you can also give it away at a discount right

11807
06:13:03,633 --> 06:13:05,500
so that you can protect the offer and cash flow

11808
06:13:05,500 --> 06:13:07,833
so that same concept of I'll give you one year free

11809
06:13:07,833 --> 06:13:08,400
he could then say

11810
06:13:08,400 --> 06:13:11,166
I will spread it over 5 years and decrease it

11811
06:13:11,166 --> 06:13:13,866
the same way as we did with a rollover credit

11812
06:13:13,866 --> 06:13:16,000
just applied as a front end offer also

11813
06:13:16,000 --> 06:13:18,400
I'll give you a pro tip on this this guy

11814
06:13:18,400 --> 06:13:20,800
so if you are gonna do an upfront deal

11815
06:13:20,866 --> 06:13:21,766
let's say that you say

11816
06:13:21,766 --> 06:13:23,166
when you sign up for a year long commitment

11817
06:13:23,166 --> 06:13:25,000
I'll give you three months free

11818
06:13:25,066 --> 06:13:27,300
make sure that you get 12 months on the back

11819
06:13:27,300 --> 06:13:29,700
you don't make this three plus nine

11820
06:13:29,766 --> 06:13:31,766
so I see that a lot of times people mess that up

11821
06:13:31,766 --> 06:13:34,300
so you're gonna massively decrease your contract

11822
06:13:34,500 --> 06:13:36,700
by basically you're saying you're you're

11823
06:13:36,700 --> 06:13:39,166
you're overcoming the hardness of a one year sale

11824
06:13:39,166 --> 06:13:40,500
but you're not getting the full one year sale

11825
06:13:40,500 --> 06:13:42,300
in the back so you wanna get the three

11826
06:13:42,300 --> 06:13:44,733
so this is technically a 15 month agreement

11827
06:13:44,766 --> 06:13:46,433
the first month first three are free

11828
06:13:46,433 --> 06:13:47,566
next 12 are paid

11829
06:13:47,600 --> 06:13:49,466
what people mess up is they do three months

11830
06:13:49,466 --> 06:13:51,233
and then nine so they have a one year agreement

11831
06:13:51,233 --> 06:13:53,800
so little pro tip so the second one is at the end

11832
06:13:53,800 --> 06:13:55,000
I love this one

11833
06:13:55,000 --> 06:13:57,066
so you can apply the entire discount at the end

11834
06:13:57,066 --> 06:13:58,100
and you push out the term

11835
06:13:58,100 --> 06:14:00,033
so long as they make the payments on time

11836
06:14:00,033 --> 06:14:01,666
and I love this cause it also

11837
06:14:01,666 --> 06:14:03,766
encourages adherence to payment schedules

11838
06:14:03,800 --> 06:14:05,366
and they get a bonus time

11839
06:14:05,366 --> 06:14:06,766
equal to the value of the discount

11840
06:14:06,766 --> 06:14:08,166
so here we say great

11841
06:14:08,166 --> 06:14:09,533
I'll give you 3 months free

11842
06:14:10,033 --> 06:14:11,800
after you sign up for the year

11843
06:14:11,800 --> 06:14:13,033
and you pay for the whole year

11844
06:14:13,033 --> 06:14:14,966
so I'll give you your three months for free

11845
06:14:14,966 --> 06:14:16,900
but you have to pay all 12 on time

11846
06:14:17,066 --> 06:14:19,366
so I can still attract customers saying

11847
06:14:19,466 --> 06:14:21,466
3 free months when you sign up for a year

11848
06:14:21,466 --> 06:14:22,300
and I just say great

11849
06:14:22,300 --> 06:14:23,300
you get it at the end

11850
06:14:23,300 --> 06:14:26,466
I explain the terms they earn their free time

11851
06:14:26,466 --> 06:14:27,900
which is why I like this so much

11852
06:14:27,900 --> 06:14:29,433
and it encourages good behavior

11853
06:14:29,433 --> 06:14:30,500
the third way you can do this is

11854
06:14:30,500 --> 06:14:31,766
you can spread it over time

11855
06:14:31,966 --> 06:14:33,433
all right and so the spread over time

11856
06:14:33,433 --> 06:14:34,666
as you apply this kind of across the term

11857
06:14:34,666 --> 06:14:35,966
this is what I was kind of referencing earlier

11858
06:14:35,966 --> 06:14:38,166
but I have enough a nice pretty visual here

11859
06:14:38,166 --> 06:14:41,166
so for him if we said okay we give you your uh

11860
06:14:42,433 --> 06:14:43,833
your three months or whatever it is

11861
06:14:43,833 --> 06:14:45,433
uh free or four months free

11862
06:14:45,433 --> 06:14:47,066
then we just divide everything

11863
06:14:47,066 --> 06:14:50,033
we basically take 25% off the uh the payment schedule

11864
06:14:50,033 --> 06:14:52,800
so three months free for a year at $200 per month

11865
06:14:52,800 --> 06:14:54,300
you've discounted by $600

11866
06:14:54,300 --> 06:14:56,200
by spreading that $600 over 12 months

11867
06:14:56,200 --> 06:14:58,000
six hundred fifty dollar per month alright

11868
06:14:58,000 --> 06:14:59,166
we've already been over this one

11869
06:14:59,166 --> 06:15:00,566
but you can still again

11870
06:15:00,566 --> 06:15:02,633
you use that 600 dollar credit as the thing

11871
06:15:02,633 --> 06:15:04,766
you advertise now that's the difference here

11872
06:15:04,766 --> 06:15:07,033
so you advertise what you would roll over eventually

11873
06:15:07,033 --> 06:15:10,100
as your front end offer so you say that 600 dollars

11874
06:15:10,100 --> 06:15:12,500
I'm gonna give you 600 dollars of credit

11875
06:15:12,566 --> 06:15:14,166
I'm gonna give you three months free

11876
06:15:14,166 --> 06:15:15,800
remember the same thing you can do three months free

11877
06:15:15,800 --> 06:15:17,000
you can say the amount off

11878
06:15:17,000 --> 06:15:19,166
you can say the absolute amount $600

11879
06:15:19,300 --> 06:15:20,500
all of those are different variations

11880
06:15:20,500 --> 06:15:21,033
that you advertise

11881
06:15:21,033 --> 06:15:22,300
you say you get that free when they come in

11882
06:15:22,300 --> 06:15:24,100
you say great I'll spread it over the term

11883
06:15:24,100 --> 06:15:26,766
now after the term finishes it goes back to full price

11884
06:15:26,766 --> 06:15:28,766
this is after the first one or two payments

11885
06:15:28,766 --> 06:15:30,266
so I'll explain how this works

11886
06:15:30,366 --> 06:15:32,766
so this one is probably like

11887
06:15:33,000 --> 06:15:34,833
best of both worlds kind of thing

11888
06:15:34,833 --> 06:15:36,733
if you sell you know

11889
06:15:37,100 --> 06:15:38,000
a 12 month commitment

11890
06:15:38,000 --> 06:15:39,866
and then they get the three months afterwards

11891
06:15:40,000 --> 06:15:42,200
some people are gonna be like ah okay

11892
06:15:42,200 --> 06:15:44,366
I mean I was hoping I get it upfront but fine

11893
06:15:44,366 --> 06:15:44,966
I get it now

11894
06:15:44,966 --> 06:15:46,700
the people who sign up for that will be great customers

11895
06:15:47,033 --> 06:15:49,566
but this is kind of what I was considered the midline

11896
06:15:49,566 --> 06:15:51,166
the middle line somewhere in between

11897
06:15:51,200 --> 06:15:54,566
so you can get one or two payments up front

11898
06:15:54,600 --> 06:15:56,266
then you give the free duration

11899
06:15:56,300 --> 06:15:58,066
then you get the contract commitment that begins

11900
06:15:58,066 --> 06:15:58,700
after that

11901
06:15:58,700 --> 06:16:00,400
that's kind of a little bit of the best of both worlds

11902
06:16:00,400 --> 06:16:01,366
because here

11903
06:16:01,400 --> 06:16:03,266
you get to liquidate the cost of acquisition

11904
06:16:03,266 --> 06:16:06,266
so the way that I like to position this is

11905
06:16:06,266 --> 06:16:07,566
you get the free time up front

11906
06:16:07,566 --> 06:16:09,100
but you have to pay first and last

11907
06:16:09,300 --> 06:16:11,866
so that gives me two months that I can get up front

11908
06:16:11,866 --> 06:16:13,366
so I can offset acquisition cost

11909
06:16:13,366 --> 06:16:15,633
pay commissions and then they get their free time

11910
06:16:15,633 --> 06:16:16,900
but they still paid for two months

11911
06:16:16,900 --> 06:16:18,300
so I have some skin in the game

11912
06:16:18,300 --> 06:16:20,833
before get their free contracted period alright

11913
06:16:20,833 --> 06:16:22,600
so they pay a few times

11914
06:16:22,766 --> 06:16:24,333
then they get their one time discount

11915
06:16:24,466 --> 06:16:25,433
the way you collect

11916
06:16:25,433 --> 06:16:27,466
a bit of cash to cover the acquisition cost

11917
06:16:27,466 --> 06:16:30,066
and some delivery cost I prefer to do it by

11918
06:16:30,066 --> 06:16:31,633
presenting it as first and last month

11919
06:16:31,633 --> 06:16:33,466
or last month up front

11920
06:16:33,500 --> 06:16:35,700
or adding something like a one time fee

11921
06:16:35,700 --> 06:16:36,300
so it's like yep

11922
06:16:36,300 --> 06:16:38,566
you absolutely will get the the 3 months

11923
06:16:38,566 --> 06:16:40,000
we do have an on boarding fee

11924
06:16:40,000 --> 06:16:42,033
or we do have a setup fee that you have to pay

11925
06:16:42,033 --> 06:16:43,600
but you'll still get the 3 months immediately

11926
06:16:43,600 --> 06:16:45,200
and then the the payments will kick in

11927
06:16:45,200 --> 06:16:46,900
so all three of these are variations

11928
06:16:46,900 --> 06:16:48,233
you could also do last month plus a fee

11929
06:16:48,233 --> 06:16:50,766
you can do first and last plus a fee totally up to you

11930
06:16:50,766 --> 06:16:52,166
but these are all variations

11931
06:16:52,166 --> 06:16:53,833
that allow you to advertise

11932
06:16:53,833 --> 06:16:56,266
huge chunks of time and still monetize acquisition

11933
06:16:56,266 --> 06:16:57,166
it also makes sure that the

11934
06:16:57,166 --> 06:16:58,566
whatever payment method they give you

11935
06:16:58,566 --> 06:17:01,700
actually goes through and so sounds like a small thing

11936
06:17:01,700 --> 06:17:03,100
but actually pretty material

11937
06:17:03,233 --> 06:17:04,900
alright so here's some additional examples

11938
06:17:04,900 --> 06:17:05,666
you've seen real estate

11939
06:17:05,666 --> 06:17:08,466
two months free lease when you sign a 12 months lease

11940
06:17:08,700 --> 06:17:11,000
uh storage free month which we know 1:00 27

11941
06:17:11,000 --> 06:17:12,000
it's not really free month

11942
06:17:12,166 --> 06:17:13,266
uh with a 12 month commitment

11943
06:17:13,266 --> 06:17:15,300
gym 2 months free with 12 month whatever

11944
06:17:15,300 --> 06:17:18,233
uh cleaners 3 free cleanings with 6 month contract

11945
06:17:18,233 --> 06:17:20,366
massage 2 months of massage 2 times a month

11946
06:17:20,366 --> 06:17:22,233
you prorate the free discounts over the duration

11947
06:17:22,233 --> 06:17:23,666
so they still pay upfront

11948
06:17:23,666 --> 06:17:25,200
which is just like the rollover upsell

11949
06:17:25,200 --> 06:17:26,033
except with cash

11950
06:17:26,033 --> 06:17:28,000
alright so those are all examples that you can use

11951
06:17:28,000 --> 06:17:29,833
now important points display

11952
06:17:29,833 --> 06:17:32,766
$1,000 per month with three free months in four ways

11953
06:17:32,900 --> 06:17:35,066
what is free the three free months

11954
06:17:35,066 --> 06:17:37,433
the absolute amount off $3,000 off percentage off

11955
06:17:37,433 --> 06:17:39,866
25% off comparison will discount your mortgage

11956
06:17:39,866 --> 06:17:42,300
so don't eat into the term with discounts

11957
06:17:42,300 --> 06:17:44,033
extend them so this is what I was referencing earlier

11958
06:17:44,033 --> 06:17:45,266
so you don't want to do 9 then 3

11959
06:17:45,266 --> 06:17:46,300
you want to do 12 then 3

11960
06:17:46,300 --> 06:17:47,700
if you're getting the the one year

11961
06:17:47,700 --> 06:17:48,400
that's all this is

11962
06:17:48,400 --> 06:17:50,166
that's the main point now sounds small

11963
06:17:50,166 --> 06:17:53,066
but it's 33% more money so don't miss that up

11964
06:17:53,066 --> 06:17:55,033
highest value per word of this entire presentation

11965
06:17:55,033 --> 06:17:57,966
number one you want to Bill on weekly every two weeks

11966
06:17:57,966 --> 06:17:59,633
every four weeks or every 12 weeks

11967
06:17:59,633 --> 06:18:01,666
etcetera the reason for this is fundamentally

11968
06:18:01,666 --> 06:18:02,833
that people misunderstand that

11969
06:18:02,833 --> 06:18:06,166
there are four weeks technically 4.3 weeks per month

11970
06:18:06,166 --> 06:18:07,500
and so if you Bill on four week cycles

11971
06:18:07,500 --> 06:18:09,000
there's 13 billing cycles in a year

11972
06:18:09,000 --> 06:18:12,366
which means you get one full month of revenue for free

11973
06:18:12,433 --> 06:18:14,466
and so if you look at your monthly recurring revenue

11974
06:18:14,466 --> 06:18:16,033
if you would like to put that in your pocket

11975
06:18:16,033 --> 06:18:17,100
this month for example

11976
06:18:17,100 --> 06:18:18,866
you can guarantee that you put it in your pocket

11977
06:18:18,866 --> 06:18:21,000
by just changing your billing from monthly

11978
06:18:21,000 --> 06:18:23,033
to every four weeks now some people say hey

11979
06:18:23,033 --> 06:18:24,000
well you said weekly

11980
06:18:24,000 --> 06:18:25,166
it's more that there's

11981
06:18:25,166 --> 06:18:26,833
you can present the prices weekly

11982
06:18:26,833 --> 06:18:28,600
but you still Bill on a four week cadence

11983
06:18:28,700 --> 06:18:30,566
because I found this out the hard way

11984
06:18:30,566 --> 06:18:31,300
if you Bill weekly

11985
06:18:31,300 --> 06:18:32,900
you get a bunch of financial pain in the butts

11986
06:18:32,900 --> 06:18:34,433
of people changing cards and like hey

11987
06:18:34,433 --> 06:18:36,300
can I pause for one week pain in the butt

11988
06:18:36,300 --> 06:18:39,466
so presented as whatever you call it 50 bucks a week

11989
06:18:39,466 --> 06:18:42,700
but you Bill at $200 every four weeks all right

11990
06:18:42,700 --> 06:18:43,666
just to be clear

11991
06:18:44,266 --> 06:18:46,066
so this is fundamentally how it works

11992
06:18:46,066 --> 06:18:49,600
that gives you 8 per 3 8.3% more revenue

11993
06:18:49,633 --> 06:18:50,966
so that may not sound like much

11994
06:18:50,966 --> 06:18:52,066
but if you run a

11995
06:18:52,400 --> 06:18:56,966
a 20% profit business if you go from 20 to 28%

11996
06:18:57,000 --> 06:18:58,833
it's going to make you a lot more money

11997
06:18:58,833 --> 06:19:00,666
that's almost a 50% increase in revenue

11998
06:19:00,666 --> 06:19:02,800
so I think there it is 41% right

11999
06:19:02,800 --> 06:19:03,500
kind of nifty

12000
06:19:03,500 --> 06:19:06,000
and the best part is you don't do any more work

12001
06:19:06,000 --> 06:19:07,866
you just change a few words in your contract

12002
06:19:07,866 --> 06:19:09,100
and how you present the price

12003
06:19:09,100 --> 06:19:10,633
that's it in my experience

12004
06:19:10,633 --> 06:19:12,866
I've never had any difference in take rates between

12005
06:19:12,900 --> 06:19:14,700
every four weeks versus every month

12006
06:19:14,700 --> 06:19:16,200
but you make a lot more money

12007
06:19:16,200 --> 06:19:19,633
so you're welcome 3% more revenue for four extra words

12008
06:19:19,633 --> 06:19:23,000
yeah it's X  a 3% processing fee

12009
06:19:23,066 --> 06:19:23,366
now

12010
06:19:23,366 --> 06:19:25,700
I've never had anyone not buy because of processing

12011
06:19:26,033 --> 06:19:29,166
the 3% added to your top line for no extra work

12012
06:19:29,166 --> 06:19:30,566
goes straight to your bottom line

12013
06:19:30,600 --> 06:19:33,300
if you run a 10% profit business and add 3%

12014
06:19:33,300 --> 06:19:36,500
you just added 30% to your profit pretty worth it

12015
06:19:36,500 --> 06:19:39,000
and this works especially well when paired with

12016
06:19:39,000 --> 06:19:40,100
they get two forms of payment

12017
06:19:40,100 --> 06:19:41,166
recurring businesses

12018
06:19:41,166 --> 06:19:42,100
lose mounts of cash

12019
06:19:42,100 --> 06:19:43,666
because payment processing problems

12020
06:19:43,666 --> 06:19:45,233
so basically people's card goes

12021
06:19:45,233 --> 06:19:46,866
you know their their numbers change they

12022
06:19:46,866 --> 06:19:47,900
they move states

12023
06:19:47,900 --> 06:19:49,700
there's some guy in Nigeria who tries to build them

12024
06:19:49,700 --> 06:19:50,433
whatever right

12025
06:19:50,433 --> 06:19:51,033
they've got something

12026
06:19:51,033 --> 06:19:52,133
and they have to change their card

12027
06:19:52,266 --> 06:19:54,500
and so first customers don't cancel

12028
06:19:54,500 --> 06:19:56,566
but their payment information changes or expires

12029
06:19:56,633 --> 06:19:57,200
second

12030
06:19:57,200 --> 06:19:59,600
customers max out cards or have insufficient funds

12031
06:19:59,966 --> 06:20:02,166
fix both issues with the same solution

12032
06:20:02,200 --> 06:20:04,233
and so what we do is we say

12033
06:20:04,233 --> 06:20:07,200
hey now that I told you about this 3% fee

12034
06:20:07,200 --> 06:20:08,566
remember kind of the rental car like hey

12035
06:20:08,566 --> 06:20:09,100
there's this fee

12036
06:20:09,100 --> 06:20:10,833
you want to avoid this fee that I made up anyways

12037
06:20:10,833 --> 06:20:12,133
yeah that's what we're gonna do

12038
06:20:12,233 --> 06:20:14,900
so if you want to avoid that 3% fee

12039
06:20:15,166 --> 06:20:16,600
do you want to save some processing

12040
06:20:16,600 --> 06:20:18,800
awesome so just give us a second form of payment

12041
06:20:18,800 --> 06:20:20,566
in case anything happens to the first one

12042
06:20:20,566 --> 06:20:22,700
if they ask why which they rarely do

12043
06:20:22,700 --> 06:20:24,966
just say we only have the process to be

12044
06:20:24,966 --> 06:20:27,266
because it costs us money to get new forms of payment

12045
06:20:27,266 --> 06:20:28,400
every time something changes

12046
06:20:28,400 --> 06:20:29,566
in this crazy world

12047
06:20:29,566 --> 06:20:30,866
people's cards are changing all the time

12048
06:20:30,866 --> 06:20:32,900
so we pass those savings onto you

12049
06:20:32,900 --> 06:20:35,100
so now I'm positioning this as a benefit to them

12050
06:20:35,100 --> 06:20:36,833
I'm passing the savings onto you

12051
06:20:36,833 --> 06:20:39,500
even though I made up these fees to begin with right

12052
06:20:39,500 --> 06:20:41,933
and that's how it works and just like that

12053
06:20:42,000 --> 06:20:44,800
you give up the 3% increase in revenue

12054
06:20:44,900 --> 06:20:47,500
to have a decrease in churn

12055
06:20:47,500 --> 06:20:50,400
and often times if your churn decreases by

12056
06:20:50,400 --> 06:20:52,966
call it 20% because of the involuntary churn

12057
06:20:52,966 --> 06:20:55,966
you more than make up the 3% in revenue

12058
06:20:56,133 --> 06:20:58,900
now there's a third little payment hack for you

12059
06:20:58,900 --> 06:21:00,700
which is you can get ACH if you can

12060
06:21:00,700 --> 06:21:02,700
so ACH is something called Automated Clearing House

12061
06:21:02,700 --> 06:21:04,900
which basically how banks pay one another

12062
06:21:04,900 --> 06:21:07,100
and so if you can get a second form of payment

12063
06:21:07,100 --> 06:21:11,500
try to get ACH so this links directly to their bank

12064
06:21:11,500 --> 06:21:14,700
and it's the cheapest way to transact besides cash

12065
06:21:14,766 --> 06:21:15,966
so if you don't know what ACH is

12066
06:21:15,966 --> 06:21:17,633
you can Google it but fundamentally

12067
06:21:17,633 --> 06:21:18,600
wherever you process money

12068
06:21:18,600 --> 06:21:20,200
they usually have an ACH option

12069
06:21:20,233 --> 06:21:21,500
and think about it like this

12070
06:21:21,500 --> 06:21:23,966
how many times have you changed your checking account

12071
06:21:23,966 --> 06:21:26,500
or your bank in the last 5 years

12072
06:21:26,500 --> 06:21:27,100
probably not

12073
06:21:27,100 --> 06:21:29,500
nearly as often as you've gotten new credit cards right

12074
06:21:29,500 --> 06:21:31,266
and the same thing applies for your customers

12075
06:21:31,266 --> 06:21:33,600
and so if you get this is the second form of payment

12076
06:21:33,600 --> 06:21:34,633
this thing's gold

12077
06:21:34,633 --> 06:21:37,200
it pretty much never declines because it really can't

12078
06:21:37,200 --> 06:21:38,400
they either have the money or they don't

12079
06:21:38,400 --> 06:21:41,066
and so this way I like having two forms of payment

12080
06:21:41,066 --> 06:21:42,300
one's a card one's ACH

12081
06:21:42,300 --> 06:21:45,500
we get the ACH by giving back the processing fee

12082
06:21:45,500 --> 06:21:47,300
and here's a fun little benefit of ACH

12083
06:21:47,433 --> 06:21:49,900
not only do you get the reduction in turn

12084
06:21:49,900 --> 06:21:52,766
you also save some money on processing too

12085
06:21:52,766 --> 06:21:54,566
because it's cheaper to process via ACH

12086
06:21:54,566 --> 06:21:56,200
usually by 1 or 2 percentage points

12087
06:21:56,333 --> 06:21:58,466
so gift cards so

12088
06:21:58,466 --> 06:22:00,566
you can give the discount on time

12089
06:22:00,566 --> 06:22:02,633
in the form of a physical gift card

12090
06:22:02,633 --> 06:22:05,433
you can mail it to them if they are out of the area

12091
06:22:05,433 --> 06:22:07,033
so if they're you know if you're a national business

12092
06:22:07,033 --> 06:22:08,466
you can mail it to them uh

12093
06:22:08,466 --> 06:22:10,933
the customer can apply the discount whenever they want

12094
06:22:11,066 --> 06:22:13,233
after their first three payments right

12095
06:22:13,233 --> 06:22:14,800
so you can say hey when you buy

12096
06:22:14,800 --> 06:22:16,366
we're gonna give you these three months free

12097
06:22:16,366 --> 06:22:17,400
but I'm gonna give it to you

12098
06:22:17,400 --> 06:22:19,466
the to you in the form of this card

12099
06:22:19,466 --> 06:22:20,366
and I'm gonna mail it to you

12100
06:22:20,366 --> 06:22:22,100
and then you have to remember to come back

12101
06:22:22,100 --> 06:22:24,666
and redeem it now you might be like Alex

12102
06:22:24,900 --> 06:22:28,500
well deal with it you can do whatever we want okay

12103
06:22:28,500 --> 06:22:30,700
and so then that way they can also

12104
06:22:30,700 --> 06:22:32,400
if you want a position to make it sound good

12105
06:22:32,500 --> 06:22:35,566
they can gift it to a friend if they want alright

12106
06:22:35,566 --> 06:22:36,300
that way it's like hey

12107
06:22:36,300 --> 06:22:38,033
gift it to a friend and beyond that

12108
06:22:38,033 --> 06:22:39,366
many people simply forget to use it

12109
06:22:39,366 --> 06:22:40,033
and in that instance

12110
06:22:40,033 --> 06:22:42,033
you just get the full price sign up alright

12111
06:22:42,033 --> 06:22:43,500
so in the quote

12112
06:22:43,500 --> 06:22:45,300
worst case scenario for the business owner

12113
06:22:45,300 --> 06:22:46,100
they get it

12114
06:22:46,100 --> 06:22:48,100
and then they redeem it after a certain period of time

12115
06:22:48,100 --> 06:22:49,000
so you still got payments

12116
06:22:49,000 --> 06:22:50,000
and you made sure the card worked

12117
06:22:50,000 --> 06:22:51,166
and they were a legit person

12118
06:22:51,266 --> 06:22:53,200
the second condition is they give it to somebody else

12119
06:22:53,200 --> 06:22:55,166
which is awesome I'll absolutely accept their friend

12120
06:22:55,166 --> 06:22:56,100
which is now a free customer

12121
06:22:56,100 --> 06:22:57,300
that I don't have to pay for

12122
06:22:57,300 --> 06:22:59,066
and I will give them that three months

12123
06:22:59,066 --> 06:23:00,166
in some sort of aggressive way

12124
06:23:00,166 --> 06:23:01,400
I might spread it over the term

12125
06:23:01,400 --> 06:23:02,666
might use one of the other ways

12126
06:23:02,900 --> 06:23:04,300
or they just don't use it

12127
06:23:04,300 --> 06:23:06,066
in which case we got the full the full price sign up

12128
06:23:06,066 --> 06:23:08,866
so you can use the discount that you want

12129
06:23:08,900 --> 06:23:10,400
in the form of a gift card

12130
06:23:10,400 --> 06:23:11,933
which is basically the same as a rebate

12131
06:23:11,966 --> 06:23:13,700
so this is a fun one so

12132
06:23:13,700 --> 06:23:17,100
try lifetime discounts at your most common turn point

12133
06:23:17,166 --> 06:23:19,100
so you advertise lifetime discount

12134
06:23:19,100 --> 06:23:20,700
but you make customers earn it

12135
06:23:20,700 --> 06:23:22,400
so they get a lower rate

12136
06:23:22,400 --> 06:23:24,966
if they stay past wire X period

12137
06:23:24,966 --> 06:23:26,466
and you make the wire X period

12138
06:23:26,466 --> 06:23:28,400
the month of the average customer drops off

12139
06:23:28,400 --> 06:23:30,566
so first time I saw this was on Amazon

12140
06:23:31,233 --> 06:23:33,200
they had a continuity for rice packets

12141
06:23:33,200 --> 06:23:37,433
I buy rice and they had 5% off if you go on continuity

12142
06:23:37,433 --> 06:23:41,333
and 15% off if you stay past five months

12143
06:23:41,433 --> 06:23:43,766
and so this is the idea is that you want to

12144
06:23:43,766 --> 06:23:45,900
and it was five months to the same address

12145
06:23:45,900 --> 06:23:47,600
like they're pretty particular about it

12146
06:23:47,600 --> 06:23:49,433
but you can get a lifetime discount

12147
06:23:49,433 --> 06:23:51,800
and if they know and I'm sure they did the math

12148
06:23:51,800 --> 06:23:54,100
that they knew that people would stop paying at

12149
06:23:54,100 --> 06:23:55,666
called the four month point

12150
06:23:55,666 --> 06:23:56,700
and so they say okay well

12151
06:23:56,700 --> 06:23:59,000
let's put a big nugget after the four month point

12152
06:23:59,000 --> 06:24:01,466
where they get a lifetime lower rate after that point

12153
06:24:01,466 --> 06:24:01,700
and so

12154
06:24:01,700 --> 06:24:03,300
you can think through your own business the same way

12155
06:24:03,300 --> 06:24:04,400
and hang the carrot

12156
06:24:04,400 --> 06:24:06,366
and you can also use this in the advertising

12157
06:24:06,466 --> 06:24:07,000
so let's say you know

12158
06:24:07,000 --> 06:24:08,666
every customer stays four months on average

12159
06:24:08,666 --> 06:24:09,700
you tell everyone up front

12160
06:24:09,700 --> 06:24:11,566
they get a lifetime discount after month four

12161
06:24:11,566 --> 06:24:12,766
so a lot of times

12162
06:24:12,766 --> 06:24:14,400
people are willing to pay more up front

12163
06:24:14,400 --> 06:24:16,266
if they know it's eventually going to go down

12164
06:24:16,266 --> 06:24:17,766
but this does two things one is

12165
06:24:17,766 --> 06:24:19,433
it gets people to buy at higher rates

12166
06:24:19,433 --> 06:24:20,166
than they otherwise would

12167
06:24:20,166 --> 06:24:21,366
because they know it's gonna go down

12168
06:24:21,366 --> 06:24:22,766
and two it gets them to stay longer

12169
06:24:22,766 --> 06:24:24,566
because they know when it's going to go down

12170
06:24:24,566 --> 06:24:25,833
so as the time approaches

12171
06:24:25,833 --> 06:24:26,500
tell them the newer

12172
06:24:26,500 --> 06:24:27,766
lower rate is right around the corner

12173
06:24:27,766 --> 06:24:31,000
this is key so if you do know that it's at month 4

12174
06:24:31,000 --> 06:24:31,800
month five or whatever

12175
06:24:31,800 --> 06:24:33,066
that they're gonna start getting a lower rate

12176
06:24:33,066 --> 06:24:34,566
at month two at month 3

12177
06:24:34,566 --> 06:24:34,966
be like hey

12178
06:24:34,966 --> 06:24:35,666
two months left hey

12179
06:24:35,666 --> 06:24:37,600
one month left remind them

12180
06:24:37,600 --> 06:24:39,900
the fact that they're earning that discount soon

12181
06:24:39,933 --> 06:24:41,000
and it'll basically

12182
06:24:41,000 --> 06:24:43,200
continue to incentivize them to stay and pay okay

12183
06:24:43,200 --> 06:24:44,400
so I said you have to have two things

12184
06:24:44,400 --> 06:24:46,766
one is knowing how you're going to apply the free time

12185
06:24:46,766 --> 06:24:48,966
or the discount and the second was cancellations

12186
06:24:49,166 --> 06:24:50,766
so there's four ways that I like to approach

12187
06:24:50,766 --> 06:24:53,833
cancellations so if someone cancels during a trial

12188
06:24:53,833 --> 06:24:54,366
so you can say

12189
06:24:54,366 --> 06:24:56,466
you're allowed to cancel during the trial now

12190
06:24:56,466 --> 06:24:57,966
if you do that it'll increase sales

12191
06:24:57,966 --> 06:24:58,833
cause then people will be like

12192
06:24:58,833 --> 06:24:59,166
okay well

12193
06:24:59,166 --> 06:24:59,700
this is easy

12194
06:24:59,700 --> 06:25:02,300
this is no risk but you'll decrease stick rate

12195
06:25:02,300 --> 06:25:02,566
meaning

12196
06:25:02,566 --> 06:25:04,400
the number of people who will stay on the back end

12197
06:25:04,966 --> 06:25:06,366
the other version of this is that

12198
06:25:06,366 --> 06:25:07,766
you can have zero cancellations

12199
06:25:07,800 --> 06:25:09,766
and say there are no cancellations allowed

12200
06:25:09,766 --> 06:25:11,233
which works with good customers

12201
06:25:11,233 --> 06:25:13,500
but it will decrease sales and increase stick

12202
06:25:13,633 --> 06:25:16,066
sometimes though I mean for example

12203
06:25:16,166 --> 06:25:18,000
Netflix and some of these other massive companies

12204
06:25:18,466 --> 06:25:19,400
they don't even try that

12205
06:25:19,400 --> 06:25:21,433
because they have customers that are unenforceable

12206
06:25:21,433 --> 06:25:23,433
and so if you're going to have zero cancellations

12207
06:25:23,433 --> 06:25:24,866
make sure it's with good customers

12208
06:25:24,866 --> 06:25:28,000
if you do zero cancellation policy on bad customers

12209
06:25:28,000 --> 06:25:29,066
you will decrease sales

12210
06:25:29,066 --> 06:25:30,466
but you will not increase stick

12211
06:25:30,633 --> 06:25:32,700
so you'll just get the cost but not the benefit

12212
06:25:32,766 --> 06:25:34,366
another way of doing this is a pro rated fee

12213
06:25:34,366 --> 06:25:35,400
based on savings accrued

12214
06:25:35,400 --> 06:25:36,700
that just sounds like fancy terms

12215
06:25:36,700 --> 06:25:39,200
but basically if they cancel uh

12216
06:25:39,200 --> 06:25:41,666
you know a month 6 and got 2 months free

12217
06:25:41,666 --> 06:25:44,100
you just build them the difference of what they saved

12218
06:25:44,100 --> 06:25:45,166
over that six months

12219
06:25:45,166 --> 06:25:47,800
and this one is probably the simplest way of doing it

12220
06:25:47,800 --> 06:25:49,800
which is you just have a one time breakup fee

12221
06:25:49,800 --> 06:25:51,866
so you have an outlaw out clause

12222
06:25:51,966 --> 06:25:53,066
it increases stick

12223
06:25:53,066 --> 06:25:55,566
it increases sales and you get money on the way out

12224
06:25:55,566 --> 06:25:57,300
and you can also use it as a negotiating chip

12225
06:25:57,300 --> 06:25:58,533
to figure out something else

12226
06:25:58,566 --> 06:26:01,566
I like this one because it's the easiest to explain

12227
06:26:01,633 --> 06:26:04,866
it's very simple and I like the negotiating personally

12228
06:26:04,866 --> 06:26:07,733
so the way this would look would be hey

12229
06:26:07,766 --> 06:26:08,866
um listen

12230
06:26:08,866 --> 06:26:10,466
you can get like you have a 12 month agreement

12231
06:26:10,466 --> 06:26:11,633
if you want to get out of the agreement

12232
06:26:11,633 --> 06:26:12,866
it costs you two months

12233
06:26:13,100 --> 06:26:14,500
that's it so it's very straightforward

12234
06:26:14,500 --> 06:26:16,166
so if you cancel at month one or month 11

12235
06:26:16,166 --> 06:26:18,666
it doesn't really matter it's two months breakup fee

12236
06:26:18,666 --> 06:26:21,000
now when they come to break up you set it up front

12237
06:26:21,000 --> 06:26:22,800
they initial next to it you say hey

12238
06:26:22,800 --> 06:26:24,866
this two month breakup fee what was the issue

12239
06:26:24,866 --> 06:26:26,700
and then you can try and leverage that wave the fee

12240
06:26:26,700 --> 06:26:28,600
get a get a review get a referral

12241
06:26:28,600 --> 06:26:30,966
get them to upsell all these other things okay

12242
06:26:31,100 --> 06:26:33,300
cancellations you need to have a cancellation policy

12243
06:26:33,300 --> 06:26:34,200
figured out ahead of time

12244
06:26:34,200 --> 06:26:35,600
there are many common ones

12245
06:26:35,600 --> 06:26:38,400
30 days or 60 days notice cancellation fees

12246
06:26:38,400 --> 06:26:39,766
cancel anytime etcetera

12247
06:26:39,766 --> 06:26:41,666
since everyone comes into my continuity

12248
06:26:41,666 --> 06:26:43,100
offers on a discount of some kind

12249
06:26:43,100 --> 06:26:45,966
this is my favorite just make the cancellation fee

12250
06:26:45,966 --> 06:26:48,100
equal to the discount that they agreed to get

12251
06:26:48,266 --> 06:26:50,700
so if they got $600 in discount by committing

12252
06:26:50,700 --> 06:26:52,933
they can pay $600 whenever they want to cancel

12253
06:26:53,000 --> 06:26:54,866
this is very simple to explain right

12254
06:26:54,866 --> 06:26:56,100
so if they got 3 months free

12255
06:26:56,100 --> 06:26:58,000
then you just got to pay for 3 months at any time

12256
06:26:58,000 --> 06:26:59,000
if you want to break early

12257
06:26:59,000 --> 06:27:00,866
I like this everyone gets it

12258
06:27:00,866 --> 06:27:03,066
now make sure customers know how to cancel

12259
06:27:03,066 --> 06:27:03,866
this sounds obvious

12260
06:27:03,866 --> 06:27:05,433
but it's one of the first things you should do

12261
06:27:05,433 --> 06:27:08,600
this is my recipe for preventing 1 star reviews

12262
06:27:08,600 --> 06:27:10,200
is tell them exactly how to cancel

12263
06:27:10,233 --> 06:27:11,900
so if customers have nowhere to complain

12264
06:27:11,900 --> 06:27:12,566
inside your business

12265
06:27:12,566 --> 06:27:14,233
they will definitely complain outside your business

12266
06:27:14,233 --> 06:27:15,833
so try to get them to complain to you

12267
06:27:15,833 --> 06:27:17,066
rather than to everyone else

12268
06:27:17,366 --> 06:27:19,833
now if you have no obvious way for them to cancel

12269
06:27:19,833 --> 06:27:21,500
more people will vanish and complain

12270
06:27:21,500 --> 06:27:23,266
by having a clear way for them to cancel

12271
06:27:23,266 --> 06:27:25,000
then you can at least talk to them

12272
06:27:25,000 --> 06:27:26,233
and have a real chance to save them

12273
06:27:26,233 --> 06:27:27,633
now I want to be very clear

12274
06:27:27,633 --> 06:27:30,666
small businesses do not get rich by making

12275
06:27:30,766 --> 06:27:32,500
stuff hard for their customers

12276
06:27:32,566 --> 06:27:33,700
if you make it easy

12277
06:27:33,700 --> 06:27:37,566
you'll suffer less and get fewer 1 star reviews

12278
06:27:37,566 --> 06:27:39,666
and have a chance to save them when they do

12279
06:27:39,666 --> 06:27:41,366
because you'll actually know about it

12280
06:27:41,366 --> 06:27:43,500
so try to make it easy for them to contact you

12281
06:27:43,500 --> 06:27:44,233
when they wanna cancel

12282
06:27:44,233 --> 06:27:46,366
or they wanna let you know about a change and stuff

12283
06:27:46,366 --> 06:27:48,900
don't make it hard like you will lose more money

12284
06:27:48,900 --> 06:27:51,100
I promise you if a customer wants to cancel

12285
06:27:51,100 --> 06:27:52,800
ask to do it in an exit interview

12286
06:27:52,800 --> 06:27:54,966
I like this some people like to vent

12287
06:27:55,000 --> 06:27:56,800
let them remember the angry boat

12288
06:27:56,800 --> 06:27:59,100
so get more angry about the problem than them

12289
06:27:59,100 --> 06:28:00,600
and they may try to calm you down

12290
06:28:00,600 --> 06:28:02,000
and as soon as they try to calm you down

12291
06:28:02,000 --> 06:28:03,000
then you have won

12292
06:28:03,000 --> 06:28:04,833
so sometimes they'll just save themselves

12293
06:28:04,833 --> 06:28:05,966
like actually wasn't that big of a deal

12294
06:28:05,966 --> 06:28:08,000
like cool why I think it's a huge deal right

12295
06:28:08,000 --> 06:28:09,166
you wanna have that happen

12296
06:28:09,166 --> 06:28:10,833
so if they complain about something you can solve

12297
06:28:10,833 --> 06:28:11,633
then buy golly

12298
06:28:11,633 --> 06:28:12,700
solve it alright

12299
06:28:12,700 --> 06:28:14,066
and if they want a better product

12300
06:28:14,066 --> 06:28:16,300
do a rollover upsell into a higher level of service

12301
06:28:16,300 --> 06:28:17,600
if you have one to offer

12302
06:28:17,633 --> 06:28:19,566
I've had many people buy a lower cost offer

12303
06:28:19,566 --> 06:28:20,166
and then complain

12304
06:28:20,166 --> 06:28:21,500
because they wanted higher cost features

12305
06:28:21,500 --> 06:28:23,166
so then I offer the higher cost features

12306
06:28:23,166 --> 06:28:24,766
and then they buy yes

12307
06:28:24,766 --> 06:28:26,666
it happens and yes it works

12308
06:28:26,666 --> 06:28:29,366
so use cancellation fees to the customer's advantage

12309
06:28:29,366 --> 06:28:30,433
so I might say hey

12310
06:28:30,433 --> 06:28:31,566
I'll wave your cancellation fee

12311
06:28:31,566 --> 06:28:33,400
if you come in and tell me what I can do better

12312
06:28:33,733 --> 06:28:36,033
this gives the customer a real reason to give feedback

12313
06:28:36,033 --> 06:28:37,933
which by the way makes us better

12314
06:28:38,233 --> 06:28:39,500
then I can use their feedback

12315
06:28:39,500 --> 06:28:40,166
fix the product

12316
06:28:40,166 --> 06:28:42,066
or offer something better suited for them

12317
06:28:42,066 --> 06:28:44,000
so I can make more money at the very least

12318
06:28:44,000 --> 06:28:46,200
they'll have nicer things to say about the business

12319
06:28:46,200 --> 06:28:48,033
if I actually try and solve the problem

12320
06:28:48,033 --> 06:28:49,800
now this isn't the classic uh

12321
06:28:49,800 --> 06:28:51,300
you have to cancel in person

12322
06:28:51,433 --> 06:28:52,466
that's not how you say it

12323
06:28:52,466 --> 06:28:54,000
that just makes it a pain in the butt

12324
06:28:54,000 --> 06:28:55,900
so you say I have this cancellation fee

12325
06:28:55,900 --> 06:28:58,700
we can charge it or if you're willing to at least

12326
06:28:58,700 --> 06:29:00,300
sit down and tell me what we could do better

12327
06:29:00,300 --> 06:29:03,066
I'll wave it for you that is now friendly

12328
06:29:03,066 --> 06:29:05,466
it's like fee or feedback

12329
06:29:05,966 --> 06:29:08,400
your choice and when you have the feedback

12330
06:29:08,400 --> 06:29:10,500
it's you really want to have a dialogue with them

12331
06:29:10,500 --> 06:29:11,233
it's not

12332
06:29:11,233 --> 06:29:12,633
you don't want to go straight to a sales pitch

12333
06:29:12,633 --> 06:29:13,266
that's not gonna work

12334
06:29:13,266 --> 06:29:14,766
you want to tell you want to let them vent

12335
06:29:14,766 --> 06:29:16,200
you want to feel have them feel validated

12336
06:29:16,200 --> 06:29:17,466
you want to be more upset than them

12337
06:29:17,466 --> 06:29:18,666
you want to have them calm you down

12338
06:29:18,666 --> 06:29:19,966
you say that you made the mistake

12339
06:29:19,966 --> 06:29:21,233
and that's unacceptable

12340
06:29:21,233 --> 06:29:23,000
ask them to see if you can make it up to them

12341
06:29:23,000 --> 06:29:25,266
then you do a rollover and you get a do over

12342
06:29:25,266 --> 06:29:28,066
that's the idea those are the important points whoo

12343
06:29:28,166 --> 06:29:29,166
alright summary

12344
06:29:29,166 --> 06:29:32,633
so continuity discounts give continuity time for free

12345
06:29:32,633 --> 06:29:34,133
if customers sign up today

12346
06:29:34,266 --> 06:29:36,400
front loaded discounts convert more customers

12347
06:29:36,400 --> 06:29:37,600
but they have higher turn

12348
06:29:37,700 --> 06:29:39,666
back loading discounts convert fewer customers

12349
06:29:39,666 --> 06:29:40,800
but they have lower turn

12350
06:29:40,900 --> 06:29:42,766
spreading the discount keeps cash flow

12351
06:29:42,766 --> 06:29:44,100
while providing the full discount

12352
06:29:44,100 --> 06:29:45,700
which is one of the reasons I like it a lot

12353
06:29:45,700 --> 06:29:48,066
use gift cards to give the discount to new customers

12354
06:29:48,066 --> 06:29:49,700
and allow them to gift it to a friend

12355
06:29:49,700 --> 06:29:51,700
or use it on themselves at a later date

12356
06:29:51,733 --> 06:29:54,033
you get the full price sign up and you get a referral

12357
06:29:54,033 --> 06:29:55,833
or you get somebody that's gonna use it later

12358
06:29:55,833 --> 06:29:57,033
both of those things are good

12359
06:29:57,033 --> 06:29:59,300
allow customers to earn a lifetime discount

12360
06:29:59,466 --> 06:30:00,866
on your month of greatest turn

12361
06:30:00,866 --> 06:30:03,066
and let them know throughout the time

12362
06:30:03,066 --> 06:30:04,266
as they get closer to it

12363
06:30:04,266 --> 06:30:06,400
that that discount is around the corner

12364
06:30:06,666 --> 06:30:08,800
light cancellation terms get more people to sign up

12365
06:30:08,800 --> 06:30:10,100
but more people leave

12366
06:30:10,100 --> 06:30:12,166
higher cancellation terms get fewer sign UPS

12367
06:30:12,166 --> 06:30:15,566
but more people stay I prefer to let people cancel

12368
06:30:15,566 --> 06:30:18,566
and have to pay the difference between what they saved

12369
06:30:18,700 --> 06:30:19,866
and what they would have paid

12370
06:30:19,866 --> 06:30:21,000
if they didn't get the discount

12371
06:30:21,000 --> 06:30:22,300
if they cancel early

12372
06:30:22,433 --> 06:30:24,366
make sure customers understand how to cancel

12373
06:30:24,366 --> 06:30:25,900
and understand how to contact you

12374
06:30:25,900 --> 06:30:29,066
if a customer wants to cancel ask for an exit interview

12375
06:30:29,066 --> 06:30:29,700
incentivize

12376
06:30:29,700 --> 06:30:31,766
them by saying that you will wave the cancellation fee

12377
06:30:31,766 --> 06:30:33,100
which gives them a real reason to do it

12378
06:30:33,100 --> 06:30:35,866
so that they can either choose fee or feedback

12379
06:30:35,866 --> 06:30:38,300
and the goal is to make more money

12380
06:30:38,300 --> 06:30:40,066
not give more stuff away

12381
06:30:40,066 --> 06:30:41,800
and that is how we structure this stuff

12382
06:30:43,466 --> 06:30:45,366
Kaboom continuity discount

12383
06:30:47,266 --> 06:30:48,700
alright so we just covered continuity

12384
06:30:48,700 --> 06:30:50,566
bonuses and continuity discounts

12385
06:30:50,566 --> 06:30:53,966
now we go to a special continuity offer

12386
06:30:54,000 --> 06:30:57,200
that I really like a lot and it's

12387
06:30:57,200 --> 06:30:59,600
the other two are kind of like big amorphous versions

12388
06:30:59,633 --> 06:31:01,466
this is a very specific play

12389
06:31:01,466 --> 06:31:03,166
it'll be the shortest of the three

12390
06:31:03,166 --> 06:31:06,166
but for many of you people who have services

12391
06:31:06,166 --> 06:31:07,266
or anything that's on continuity

12392
06:31:07,266 --> 06:31:08,566
especially if you're on boarding

12393
06:31:08,566 --> 06:31:11,100
or some sort of getting clients results quickly

12394
06:31:11,300 --> 06:31:13,233
this thing is a beast alright

12395
06:31:13,233 --> 06:31:14,366
so here's how I Learned it

12396
06:31:14,433 --> 06:31:15,766
so after a long career in business

12397
06:31:15,766 --> 06:31:16,866
a friend of mine entered uh

12398
06:31:16,866 --> 06:31:18,033
the consulting space

12399
06:31:18,033 --> 06:31:19,966
with the intention of creating a lifestyle business

12400
06:31:19,966 --> 06:31:20,566
so he said hey

12401
06:31:20,566 --> 06:31:21,900
I just rather make 5 million bucks a year

12402
06:31:21,900 --> 06:31:25,033
with no employees and then have some big company um

12403
06:31:25,033 --> 06:31:25,833
and he said you know

12404
06:31:25,833 --> 06:31:26,900
I don't really lose anyone

12405
06:31:26,900 --> 06:31:27,866
so I don't really need to market

12406
06:31:27,866 --> 06:31:29,400
and I was like that's really interesting

12407
06:31:29,400 --> 06:31:30,866
a weird thing to say I was like

12408
06:31:30,866 --> 06:31:32,200
so I assume like all right

12409
06:31:32,200 --> 06:31:33,566
so you just collect payments up front

12410
06:31:33,566 --> 06:31:35,100
whenever somebody says I don't have any turn

12411
06:31:35,100 --> 06:31:36,500
I usually just assume well

12412
06:31:36,500 --> 06:31:38,400
you have no turn if you only have prepayments

12413
06:31:38,566 --> 06:31:40,500
he said no I've got mostly payment plans I was like

12414
06:31:40,500 --> 06:31:41,300
huh

12415
06:31:41,766 --> 06:31:43,300
how do you do that he said

12416
06:31:43,300 --> 06:31:44,000
well once you hear it

12417
06:31:44,000 --> 06:31:45,200
you're gonna kick yourself for not doing this

12418
06:31:45,200 --> 06:31:46,566
all along I was like alright

12419
06:31:46,566 --> 06:31:48,300
so what do you do he said

12420
06:31:48,500 --> 06:31:51,166
I just say that you can pay $25,000 to start

12421
06:31:51,166 --> 06:31:52,500
and then go month to month after that

12422
06:31:52,500 --> 06:31:56,400
for $4,000 a month or you can go to $4,000 a month

12423
06:31:56,400 --> 06:31:57,633
if you commit to the year

12424
06:31:57,633 --> 06:31:59,566
so just about everyone takes the year

12425
06:31:59,566 --> 06:32:01,366
then I just have them initial on their contract

12426
06:32:01,366 --> 06:32:02,966
that they understand that if they exit early

12427
06:32:02,966 --> 06:32:05,066
they have to cover a 25,000 dollar onboarding fee

12428
06:32:05,066 --> 06:32:06,100
so if someone calls to quit

12429
06:32:06,100 --> 06:32:06,866
I just say oh yeah

12430
06:32:06,866 --> 06:32:08,466
no worries just wire over the onboarding fee

12431
06:32:08,466 --> 06:32:09,800
and I'll get you cancelled right away

12432
06:32:09,800 --> 06:32:11,400
and that usually keeps people in it

12433
06:32:11,400 --> 06:32:12,766
it also gets people through

12434
06:32:12,766 --> 06:32:15,033
the emotional UPS and downs of business and I was like

12435
06:32:15,033 --> 06:32:18,066
that's pretty sweet so if you look at this visual here

12436
06:32:18,166 --> 06:32:19,766
if you had a 1000

12437
06:32:19,766 --> 06:32:22,266
you know a thousand dollar month continuity plan right

12438
06:32:22,266 --> 06:32:24,666
you could say cool this is 5,000 down

12439
06:32:24,666 --> 06:32:26,400
then thousand bucks month to month

12440
06:32:26,400 --> 06:32:29,566
or I will waive the 5,000 dollar fee

12441
06:32:29,866 --> 06:32:32,633
and it will be free with a 12 month commitment

12442
06:32:32,633 --> 06:32:34,233
at $1,000 a month

12443
06:32:34,233 --> 06:32:36,300
and you pay that if you want to cancel early

12444
06:32:36,300 --> 06:32:40,400
so this is fundamentally a neat cancellation term

12445
06:32:40,466 --> 06:32:41,500
fundamentally it's what it is

12446
06:32:41,500 --> 06:32:45,100
but because we pair it as a price on the front end

12447
06:32:45,100 --> 06:32:48,400
it becomes a very strong sales thing too

12448
06:32:48,400 --> 06:32:49,500
so with the other version

12449
06:32:49,500 --> 06:32:51,966
we use the 3 months free or whatever to get someone in

12450
06:32:51,966 --> 06:32:52,666
and then we say cool

12451
06:32:52,666 --> 06:32:55,166
you have to pay the difference if you cancel early

12452
06:32:55,166 --> 06:32:57,833
here we sell them on the vacation and we say

12453
06:32:57,833 --> 06:32:59,666
we have this massive on boarding fee

12454
06:32:59,666 --> 06:33:02,566
but I'll waive it if you sign up for a commitment

12455
06:33:02,633 --> 06:33:04,566
then that also hangs as a knife

12456
06:33:04,566 --> 06:33:05,566
if they don't wanna pay it today

12457
06:33:05,566 --> 06:33:07,200
they're not gonna pay it 6 months either

12458
06:33:07,366 --> 06:33:07,666
and so

12459
06:33:07,666 --> 06:33:09,466
the same reason they signed up is the same reason

12460
06:33:09,466 --> 06:33:11,166
they'll keep paying here's our description

12461
06:33:11,166 --> 06:33:12,866
so the way fee offers work like this

12462
06:33:12,866 --> 06:33:14,266
first you ask customers to pay a starter fee

12463
06:33:14,266 --> 06:33:15,900
as a part of doing a month to month program

12464
06:33:16,200 --> 06:33:18,000
typically you want to do that to three

12465
06:33:18,000 --> 06:33:19,633
to five times the monthly rate alright

12466
06:33:19,633 --> 06:33:20,833
so if it was a thousand dollar thing

12467
06:33:20,833 --> 06:33:24,566
you'd want to be a 5 thousand dollar uh front fee for

12468
06:33:24,566 --> 06:33:26,233
you know the example was 4,000 dollars a month

12469
06:33:26,233 --> 06:33:27,700
and 25 thousand dollar sign up fee

12470
06:33:27,700 --> 06:33:29,300
that's the idea alright

12471
06:33:29,300 --> 06:33:31,300
then you offer discount the entire fee

12472
06:33:31,300 --> 06:33:32,800
if they commit to the longer term

12473
06:33:32,800 --> 06:33:33,666
and the commitment period

12474
06:33:33,666 --> 06:33:35,000
should be minimum of 6 months

12475
06:33:35,000 --> 06:33:37,033
ideally 12  if it's less than that

12476
06:33:37,033 --> 06:33:38,033
it doesn't really make any sense

12477
06:33:38,033 --> 06:33:41,200
so if they cancel inside the term they pay the fee

12478
06:33:41,233 --> 06:33:43,200
customers can choose to pay the big fee

12479
06:33:43,200 --> 06:33:45,100
and keep the option to quit at any time

12480
06:33:45,100 --> 06:33:47,766
or they can commit to 12 months and get the fee waived

12481
06:33:47,766 --> 06:33:49,700
and many will commit to avoid the big fee

12482
06:33:49,700 --> 06:33:52,400
there's also a clear point after four

12483
06:33:52,400 --> 06:33:55,233
five six months where if they paid the fee

12484
06:33:55,233 --> 06:33:57,366
it's the same as staying in which case

12485
06:33:57,366 --> 06:33:59,766
it basically gets them through that initial turn point

12486
06:33:59,766 --> 06:34:00,400
and then after that

12487
06:34:00,400 --> 06:34:02,200
there's no financial reason to leave

12488
06:34:02,200 --> 06:34:03,766
the back half of the contract

12489
06:34:03,766 --> 06:34:06,300
so we take the greater risk if they pay month to month

12490
06:34:06,300 --> 06:34:08,233
but they take a greater risk if they commit

12491
06:34:08,233 --> 06:34:10,033
and so if a customer chooses month to month

12492
06:34:10,033 --> 06:34:12,133
we lower our risk with the startup fee

12493
06:34:12,233 --> 06:34:13,500
but we lower their risk

12494
06:34:13,500 --> 06:34:15,233
year to year by waving those fees

12495
06:34:15,233 --> 06:34:17,066
and if they commit and they want to quit early

12496
06:34:17,066 --> 06:34:19,200
then okay they pay the fee as though

12497
06:34:19,200 --> 06:34:21,166
they had paid month to month from the beginning

12498
06:34:21,166 --> 06:34:21,966
very simple

12499
06:34:22,000 --> 06:34:24,000
bottom line is that customers will stay longer

12500
06:34:24,000 --> 06:34:25,266
if leaving cost more than staying

12501
06:34:25,266 --> 06:34:27,000
and to make this equitable

12502
06:34:27,166 --> 06:34:28,566
if they stay the full term

12503
06:34:28,566 --> 06:34:30,900
they can cancel if they choose with no fee

12504
06:34:30,900 --> 06:34:32,366
that's what makes it fair to both parties

12505
06:34:32,366 --> 06:34:33,833
so if you need to feel better about yourself

12506
06:34:33,833 --> 06:34:35,133
for charging these things

12507
06:34:35,400 --> 06:34:35,500
uh

12508
06:34:35,500 --> 06:34:38,600
whether real or made up you should get that looked at

12509
06:34:38,600 --> 06:34:40,500
but if you need a reason why

12510
06:34:40,500 --> 06:34:42,066
well here's a perfectly reasonable

12511
06:34:42,066 --> 06:34:44,300
also made up reason for you

12512
06:34:44,300 --> 06:34:46,600
you can say this whenever we onboard a new customer

12513
06:34:46,600 --> 06:34:47,900
it always takes more resources

12514
06:34:47,900 --> 06:34:49,000
than an existing customer

12515
06:34:49,000 --> 06:34:50,633
who's been with us for multiple months

12516
06:34:50,633 --> 06:34:52,166
so in order to give you the best experience

12517
06:34:52,166 --> 06:34:54,166
we charge a one time onboarding fee setup

12518
06:34:54,166 --> 06:34:55,000
activation engagement

12519
06:34:55,000 --> 06:34:57,300
enrollment whatever made up thing you want to say

12520
06:34:57,300 --> 06:34:58,700
to give you the experience

12521
06:34:59,000 --> 06:35:01,400
that experience so you'll never have to be it again

12522
06:35:01,400 --> 06:35:02,466
and it's for your own benefit

12523
06:35:02,466 --> 06:35:04,566
so you get the most out of your experience

12524
06:35:04,633 --> 06:35:06,800
now we know that if you learn how to use our services

12525
06:35:06,800 --> 06:35:10,466
the right way you be 23.7 x times more successful

12526
06:35:10,466 --> 06:35:12,166
so you can say initiation

12527
06:35:12,166 --> 06:35:13,433
onboarding enrollment

12528
06:35:13,433 --> 06:35:14,266
startup setup

12529
06:35:14,266 --> 06:35:15,366
processing activation

12530
06:35:15,366 --> 06:35:16,100
build commencement

12531
06:35:16,100 --> 06:35:17,566
you can just use whatever word you want

12532
06:35:17,566 --> 06:35:19,066
and put the word fee afterwards

12533
06:35:19,066 --> 06:35:19,966
and that's what it can be

12534
06:35:19,966 --> 06:35:21,466
so that is our description

12535
06:35:21,466 --> 06:35:22,433
let me give you some examples

12536
06:35:22,433 --> 06:35:24,300
so we'll use all combinations

12537
06:35:24,300 --> 06:35:26,433
but we'll assume $5,000 on boarding fee

12538
06:35:26,433 --> 06:35:28,466
and $1,000 a month for all of them okay

12539
06:35:28,466 --> 06:35:30,166
so wave fee with commitment

12540
06:35:30,166 --> 06:35:30,966
this is my personal favorite

12541
06:35:30,966 --> 06:35:31,633
it's clean and simple

12542
06:35:31,633 --> 06:35:33,033
commitment 12 months monthly rates

12543
06:35:33,033 --> 06:35:34,000
thousand dollars a month fees

12544
06:35:34,000 --> 06:35:36,500
five thousand dollars if they pay month to month

12545
06:35:36,500 --> 06:35:37,666
option A pay one time

12546
06:35:37,666 --> 06:35:40,266
5 grand plus a thousand dollars for the first month

12547
06:35:40,266 --> 06:35:41,866
then pay a thousand dollars a month thereafter

12548
06:35:41,866 --> 06:35:43,566
cancel whenever you want option B

12549
06:35:43,566 --> 06:35:45,966
wave the $5,000 if you commit to 12

12550
06:35:45,966 --> 06:35:47,166
pay a thousand dollars per month

12551
06:35:47,166 --> 06:35:48,900
only pay the 5,000 dollar fee

12552
06:35:49,100 --> 06:35:50,900
if you break your commitment early boom

12553
06:35:50,900 --> 06:35:51,600
very simple

12554
06:35:51,600 --> 06:35:53,966
very straightforward there's a visual if you want

12555
06:35:53,966 --> 06:35:56,266
you can do a different version of this where you keep

12556
06:35:56,300 --> 06:35:57,933
uh the month to month rate higher

12557
06:35:57,966 --> 06:36:00,100
so if they cancel the discounted commitment

12558
06:36:00,100 --> 06:36:01,466
you build the difference alright

12559
06:36:01,466 --> 06:36:05,300
so let's say uh they basically the longer they stay

12560
06:36:05,300 --> 06:36:06,866
the bigger the cancellation rate

12561
06:36:06,966 --> 06:36:09,033
so if they've accrued you know

12562
06:36:09,033 --> 06:36:09,833
uh

12563
06:36:10,100 --> 06:36:14,466
$177 of savings or $67 of savings every single month

12564
06:36:14,466 --> 06:36:15,466
on their commitment

12565
06:36:15,466 --> 06:36:18,100
the day they wanna they wanna break the contract

12566
06:36:18,100 --> 06:36:20,200
they pay the difference in savings up to that point

12567
06:36:20,266 --> 06:36:21,700
now let's do some important points

12568
06:36:21,766 --> 06:36:23,700
so four variables for this method

12569
06:36:23,700 --> 06:36:24,800
you've got the commitment length

12570
06:36:24,800 --> 06:36:25,833
you've got the commitment rate

12571
06:36:25,833 --> 06:36:26,833
you've got the month to month rate

12572
06:36:26,833 --> 06:36:28,566
and you've got the fee that they're gonna waive or not

12573
06:36:28,600 --> 06:36:29,900
there are more versions of this

12574
06:36:29,900 --> 06:36:31,066
beyond the two that I shared

12575
06:36:31,066 --> 06:36:32,500
you can figure them out on your own

12576
06:36:32,500 --> 06:36:35,000
now I had an earlier version of this that had like

12577
06:36:35,000 --> 06:36:37,366
nine different versions and my editor was like

12578
06:36:37,366 --> 06:36:38,966
you're honestly just gonna confuse people

12579
06:36:38,966 --> 06:36:41,033
so don't do that so fundamentally though

12580
06:36:41,033 --> 06:36:42,666
you can mix and match these however you want

12581
06:36:42,666 --> 06:36:43,600
you can have a like

12582
06:36:43,600 --> 06:36:45,900
the rate difference between the people who commit

12583
06:36:45,900 --> 06:36:49,866
can be less you can have a the length be a variable uh

12584
06:36:49,866 --> 06:36:51,766
the rate that you charge month to month is different

12585
06:36:51,766 --> 06:36:52,800
the fee that you waive so

12586
06:36:52,800 --> 06:36:54,833
all of those things kind of go into this deal structure

12587
06:36:54,833 --> 06:36:57,200
the recommendation that I have is a model that works

12588
06:36:57,200 --> 06:36:58,500
which is take the price

12589
06:36:58,500 --> 06:37:00,200
multiply it by five make that the fee

12590
06:37:00,200 --> 06:37:01,800
wave it and that holds

12591
06:37:01,800 --> 06:37:03,466
that basically hangs over the head the whole time

12592
06:37:03,466 --> 06:37:04,366
and if you want again

12593
06:37:04,366 --> 06:37:06,000
the ethical reason for this is that

12594
06:37:06,200 --> 06:37:08,100
many businesses and many

12595
06:37:08,266 --> 06:37:10,433
services have emotional UPS and downs

12596
06:37:10,433 --> 06:37:12,266
their volatility for customers

12597
06:37:12,300 --> 06:37:14,466
and so having something

12598
06:37:14,466 --> 06:37:17,266
kind of like guardrails to keep someone on point

12599
06:37:17,266 --> 06:37:18,866
during the rough months

12600
06:37:18,966 --> 06:37:20,833
can help them overall see success

12601
06:37:20,833 --> 06:37:22,600
and I believe that so that's not just not

12602
06:37:22,600 --> 06:37:23,666
that's not just word smithing

12603
06:37:23,666 --> 06:37:28,566
that's true um and this vehicle or pricing structure

12604
06:37:28,566 --> 06:37:31,700
money model allows you to build incentives around that

12605
06:37:31,866 --> 06:37:34,866
all right so fees get them to start

12606
06:37:35,066 --> 06:37:36,866
people get value out of committing immediately

12607
06:37:36,866 --> 06:37:37,833
because they avoid a fee

12608
06:37:37,833 --> 06:37:39,566
people want to avoid fees so more people sign up

12609
06:37:39,566 --> 06:37:41,000
to continuity mission accomplished

12610
06:37:41,000 --> 06:37:42,466
Hooray that's how this works

12611
06:37:42,500 --> 06:37:43,833
fees also get them to stick

12612
06:37:43,833 --> 06:37:44,800
which is lovely

12613
06:37:44,800 --> 06:37:46,833
so people will stick for the same reason they started

12614
06:37:46,833 --> 06:37:48,300
by sticking to avoid the fee

12615
06:37:48,300 --> 06:37:50,266
so people quit for millions of reasons

12616
06:37:50,333 --> 06:37:52,600
but by incurring an additional cost

12617
06:37:52,600 --> 06:37:54,500
a larger fee in order to cancel

12618
06:37:54,500 --> 06:37:55,833
their original reason for quitting

12619
06:37:55,833 --> 06:37:56,700
immediately shrinks

12620
06:37:56,700 --> 06:37:58,366
compared to the value of avoiding the fee

12621
06:37:58,433 --> 06:38:00,966
in English if the cost to quit exceeds the cost to stay

12622
06:38:00,966 --> 06:38:02,966
they will probably stay presenting the fee

12623
06:38:03,033 --> 06:38:04,000
justify the fee

12624
06:38:04,000 --> 06:38:05,800
by explaining the cost of taking on new customers

12625
06:38:05,800 --> 06:38:07,600
for longer term programs basically

12626
06:38:07,600 --> 06:38:09,200
if they want short term flexibility

12627
06:38:09,266 --> 06:38:10,966
they pay their own setup costs

12628
06:38:10,966 --> 06:38:12,866
if they commit to staying long term

12629
06:38:12,866 --> 06:38:14,666
we'll pay their setup cost for them alright

12630
06:38:14,666 --> 06:38:16,300
if someone asks for additional reason

12631
06:38:16,300 --> 06:38:18,766
just say it costs us money to get you started

12632
06:38:18,766 --> 06:38:20,066
if you only want to test us out

12633
06:38:20,066 --> 06:38:21,966
you cover those costs if you commit to longer

12634
06:38:21,966 --> 06:38:22,700
I'll cover them

12635
06:38:22,700 --> 06:38:25,700
now if more than 5% of people want to cancel early

12636
06:38:25,700 --> 06:38:28,300
look into that pricing incentivizes sticking

12637
06:38:28,300 --> 06:38:31,500
but it can't and shouldn't overcome a terrible product

12638
06:38:31,566 --> 06:38:32,966
you want to nudge them

12639
06:38:32,966 --> 06:38:35,033
not handcuff people into paying for something they hate

12640
06:38:35,033 --> 06:38:36,766
cause then they'll just hate you

12641
06:38:36,766 --> 06:38:39,700
now if you want more upfront cash

12642
06:38:39,700 --> 06:38:40,833
have a smaller fee

12643
06:38:40,833 --> 06:38:42,633
a smaller fee encourages more people to go

12644
06:38:42,633 --> 06:38:44,566
month to month this is the same uh

12645
06:38:44,566 --> 06:38:46,566
difference we had with the earlier version

12646
06:38:46,566 --> 06:38:48,100
with the continuity bonus offer

12647
06:38:48,100 --> 06:38:49,033
same idea

12648
06:38:49,033 --> 06:38:51,333
except this is just a fee rather than a program

12649
06:38:51,333 --> 06:38:52,966
but some people will pay

12650
06:38:52,966 --> 06:38:55,166
and I'll tell you what my guess would be to get 50

12651
06:38:55,166 --> 06:38:58,033
50 to sign up which would be a 33% increase uh

12652
06:38:58,033 --> 06:39:00,066
a smaller fee will get more people to go month to month

12653
06:39:00,366 --> 06:39:01,433
a larger fee will encourage

12654
06:39:01,433 --> 06:39:02,433
more people to make the commitment

12655
06:39:02,433 --> 06:39:04,000
but if you need more cash upfront

12656
06:39:04,000 --> 06:39:04,800
then you can make the fee

12657
06:39:04,800 --> 06:39:06,500
one and a/2 to three times the monthly rate

12658
06:39:06,500 --> 06:39:08,266
and that will get more people to choose

12659
06:39:08,266 --> 06:39:09,700
that more flexible option

12660
06:39:09,766 --> 06:39:11,666
and when you do this more people will take it great

12661
06:39:11,666 --> 06:39:12,966
and you get more cash upfront

12662
06:39:13,000 --> 06:39:14,700
so you can drop the fee

12663
06:39:14,700 --> 06:39:16,500
after the customer fulfills the commitment right

12664
06:39:16,500 --> 06:39:17,966
so if someone stays the entirety of the commitment

12665
06:39:17,966 --> 06:39:18,666
and I'm repeating this

12666
06:39:18,666 --> 06:39:19,866
cause some people forget about this

12667
06:39:19,866 --> 06:39:21,200
and then wants to cancel

12668
06:39:21,300 --> 06:39:23,433
then they have honored their commitment

12669
06:39:23,433 --> 06:39:24,866
and then you need to honor

12670
06:39:24,866 --> 06:39:27,000
the fact that they don't need to pay that fee anymore

12671
06:39:27,000 --> 06:39:28,166
that is what makes it equitable

12672
06:39:28,166 --> 06:39:29,766
that's what makes it fair OK

12673
06:39:29,766 --> 06:39:32,100
so I prefer this offer for commitments over one year

12674
06:39:32,100 --> 06:39:33,066
and longer alright

12675
06:39:33,066 --> 06:39:34,000
so the longer the commitment

12676
06:39:34,000 --> 06:39:35,300
the better this works this works

12677
06:39:35,300 --> 06:39:36,400
especially well with services

12678
06:39:36,400 --> 06:39:37,466
that take a long time to work

12679
06:39:37,466 --> 06:39:39,800
so think about SEO investing

12680
06:39:39,866 --> 06:39:41,900
weight loss these are all things that take a long time

12681
06:39:41,900 --> 06:39:43,633
for someone to really get closer to their goals

12682
06:39:43,633 --> 06:39:45,666
it keeps people committed when they get emotional

12683
06:39:45,666 --> 06:39:47,000
cancellation fees for a cause

12684
06:39:47,000 --> 06:39:49,500
so this is like a 2:01 version of this

12685
06:39:49,500 --> 06:39:51,900
um but if you want to keep customers extra motivated

12686
06:39:51,900 --> 06:39:55,166
you can donate the money that they would be paying

12687
06:39:55,266 --> 06:39:57,366
for a cause that they are against

12688
06:39:57,400 --> 06:39:58,100
so you just say hey

12689
06:39:58,100 --> 06:39:59,633
what cause do you absolutely hate

12690
06:39:59,633 --> 06:40:00,633
great if you cancel early

12691
06:40:00,633 --> 06:40:03,233
I will be donating your entire setup fee to them

12692
06:40:03,233 --> 06:40:05,266
so this gives them two reasons to stay first

12693
06:40:05,266 --> 06:40:06,800
because they don't want to shell out the cash second

12694
06:40:06,800 --> 06:40:07,833
because they don't want to call

12695
06:40:07,833 --> 06:40:09,933
they don't want to give it to a cause they hate summary

12696
06:40:10,033 --> 06:40:11,100
so wave fee offers

12697
06:40:11,100 --> 06:40:13,233
present a month to month option with a fee

12698
06:40:13,233 --> 06:40:14,900
or a wave fee if they commit

12699
06:40:14,900 --> 06:40:17,100
I typically make it 3 to 5 times my monthly rate

12700
06:40:17,100 --> 06:40:19,133
at minimum the commitment length should be a year

12701
06:40:19,166 --> 06:40:19,966
the larger your fee

12702
06:40:19,966 --> 06:40:21,266
the more buyers will opt for commitment

12703
06:40:21,266 --> 06:40:21,800
the smaller fee

12704
06:40:21,800 --> 06:40:23,966
the more people will do the month to month option

12705
06:40:23,966 --> 06:40:25,433
which will give you more cash up front

12706
06:40:25,433 --> 06:40:26,700
if the customer meets the commitment

12707
06:40:26,700 --> 06:40:28,600
the fee officially goes away boom

12708
06:40:28,600 --> 06:40:29,866
that is the wave fee offer

12709
06:40:31,966 --> 06:40:34,366
so we just finished all of the continuity offers

12710
06:40:34,366 --> 06:40:35,066
continuity bonuses

12711
06:40:35,066 --> 06:40:37,266
continuity discounts and the we fee offer

12712
06:40:37,266 --> 06:40:40,066
which leads us to making your money model

12713
06:40:40,066 --> 06:40:41,233
so it is now your turn

12714
06:40:41,233 --> 06:40:42,966
remember there's document demonstrate duplicate

12715
06:40:42,966 --> 06:40:44,633
this is where I turn it over to you

12716
06:40:44,633 --> 06:40:45,666
where you need to combine

12717
06:40:45,666 --> 06:40:47,433
these things in such a way that you can maximize

12718
06:40:47,433 --> 06:40:49,066
the amount of money that you make in the first 30 days

12719
06:40:49,066 --> 06:40:51,733
so you can profitably acquire customers and scale

12720
06:40:51,800 --> 06:40:55,166
so let's do a quick putting it all together

12721
06:40:55,233 --> 06:40:57,833
so overview a money model

12722
06:40:57,833 --> 06:40:58,866
attraction offer upsells

12723
06:40:58,866 --> 06:40:59,600
downsells continuity

12724
06:40:59,600 --> 06:41:01,700
we have covered all four if you are starting out

12725
06:41:01,700 --> 06:41:03,266
just pick one of the money models

12726
06:41:03,266 --> 06:41:05,033
to inspire you to do something in your business

12727
06:41:05,033 --> 06:41:06,466
alright if you're more advanced

12728
06:41:06,466 --> 06:41:07,833
you can start weaving two together

12729
06:41:07,833 --> 06:41:08,900
there are no rules for this

12730
06:41:08,900 --> 06:41:10,366
you can stack these so

12731
06:41:10,366 --> 06:41:12,866
you absolutely can do an attraction offer

12732
06:41:13,100 --> 06:41:15,866
that you use as an upsell offer in your business

12733
06:41:15,866 --> 06:41:17,233
you can use a

12734
06:41:17,233 --> 06:41:19,500
continuity offer on the front to attract customers

12735
06:41:19,566 --> 06:41:21,466
all of these things are possible

12736
06:41:21,466 --> 06:41:23,033
I try to present them in this way

12737
06:41:23,033 --> 06:41:24,100
in the most logical format

12738
06:41:24,100 --> 06:41:26,266
that I have tended to use them in my business

12739
06:41:26,266 --> 06:41:27,700
but there are no rules in business

12740
06:41:27,700 --> 06:41:31,066
as long as it is legal so I leave that to you

12741
06:41:31,066 --> 06:41:32,266
alright examples

12742
06:41:32,266 --> 06:41:33,466
so this is my fitness offer

12743
06:41:33,466 --> 06:41:35,500
so I try to conceptualize this for you

12744
06:41:35,500 --> 06:41:36,766
so okay

12745
06:41:36,900 --> 06:41:39,266
on the front end I ran a win your money back offer

12746
06:41:39,300 --> 06:41:41,600
then we would upsell from a service perspective

12747
06:41:41,600 --> 06:41:42,466
for anybody who bought that

12748
06:41:42,466 --> 06:41:44,800
we'd upsell buy X get y free

12749
06:41:44,800 --> 06:41:46,566
so this would be them pre paying time

12750
06:41:46,633 --> 06:41:48,700
and then we would upsell the continuity bonus

12751
06:41:48,700 --> 06:41:51,233
great so that would be the role of our upsell now

12752
06:41:51,233 --> 06:41:53,833
if someone uh didn't want to do win your money back

12753
06:41:53,833 --> 06:41:56,066
then we would down sell the free trial with penalty

12754
06:41:56,066 --> 06:41:56,933
and then we would

12755
06:41:57,033 --> 06:41:59,700
do is the menu upsell in terms of supplements

12756
06:41:59,700 --> 06:42:02,100
and then we do the rollover upsell on the back end

12757
06:42:02,100 --> 06:42:04,766
and so this was fundamentally the money model

12758
06:42:04,766 --> 06:42:05,833
so I used 1 two

12759
06:42:05,833 --> 06:42:06,366
three 4

12760
06:42:06,366 --> 06:42:10,300
five of the offers that I talked about to make

12761
06:42:10,300 --> 06:42:11,433
the money model that we had

12762
06:42:11,433 --> 06:42:12,233
for fitness

12763
06:42:12,300 --> 06:42:15,366
this model was superior to other models on the market

12764
06:42:15,366 --> 06:42:18,233
which is why our gyms consistently outcompete

12765
06:42:18,233 --> 06:42:19,766
other gyms in the marketplace

12766
06:42:20,233 --> 06:42:22,300
alright so this is gym launches model

12767
06:42:22,366 --> 06:42:25,200
so we used a decoy offer that was the strategy call

12768
06:42:25,200 --> 06:42:25,766
that was the uh

12769
06:42:25,766 --> 06:42:28,000
you could also consider it a free with consumption uh

12770
06:42:28,000 --> 06:42:28,966
depending how you wanna see it

12771
06:42:28,966 --> 06:42:32,333
but we had that offer then we did a classic upsell

12772
06:42:33,300 --> 06:42:35,500
then we did the menu upsell on the back end

12773
06:42:35,500 --> 06:42:37,233
into what level of service they wanted

12774
06:42:37,233 --> 06:42:38,366
for the extended period of time

12775
06:42:38,366 --> 06:42:40,966
did you want these other services that went with uh

12776
06:42:40,966 --> 06:42:42,466
Gym launch or sorry Gym Legacy

12777
06:42:42,466 --> 06:42:43,666
which was the back end that we had

12778
06:42:43,666 --> 06:42:45,433
so some people opted for the highest version

12779
06:42:45,433 --> 06:42:45,866
some people said

12780
06:42:45,866 --> 06:42:47,566
you know I don't need like agency services

12781
06:42:47,566 --> 06:42:50,033
I just want the ads like you don't have to run them

12782
06:42:50,033 --> 06:42:52,866
hey uh but I do want you to uh train my sales team

12783
06:42:52,866 --> 06:42:54,966
and so we would basically menu up

12784
06:42:54,966 --> 06:42:55,266
sell

12785
06:42:55,266 --> 06:42:57,500
the features that we thought would be best for them

12786
06:42:57,500 --> 06:42:59,366
now if people didn't take the offer

12787
06:42:59,366 --> 06:43:02,700
we had a payment plan feature down sell free trial

12788
06:43:02,800 --> 06:43:04,566
right and so this so this is 1

12789
06:43:04,566 --> 06:43:05,066
2 3

12790
06:43:05,066 --> 06:43:05,666
4 5

12791
06:43:05,666 --> 06:43:07,066
6 6

12792
06:43:07,066 --> 06:43:07,966
of the structures

12793
06:43:07,966 --> 06:43:09,800
that I went over for this presentation

12794
06:43:09,833 --> 06:43:11,966
is what created the gym launch money

12795
06:43:11,966 --> 06:43:15,300
mop now uh newsletter and consulting

12796
06:43:15,300 --> 06:43:16,466
so I just love this money model

12797
06:43:16,466 --> 06:43:17,933
it's just like one of my favorite ones

12798
06:43:18,100 --> 06:43:20,466
uh cause I mentioned it uh during this video uh

12799
06:43:20,466 --> 06:43:21,700
trading a couple times

12800
06:43:21,700 --> 06:43:23,966
but this was an attraction offer

12801
06:43:23,966 --> 06:43:25,233
which is a free trial be like wait

12802
06:43:25,233 --> 06:43:26,766
how can you use free trial as an attraction offer

12803
06:43:26,766 --> 06:43:28,166
yes there are no rules

12804
06:43:28,200 --> 06:43:30,300
so we used a free trial as the attraction offer

12805
06:43:30,300 --> 06:43:32,666
the thing that made it cash flow was the pay less now

12806
06:43:32,666 --> 06:43:34,466
pay more later option of saying hey

12807
06:43:34,466 --> 06:43:35,966
we'll get you the past newsletters

12808
06:43:36,166 --> 06:43:37,100
and technically

12809
06:43:37,100 --> 06:43:39,833
this was combined with a lifetime lower rate

12810
06:43:39,833 --> 06:43:42,733
so this is a continuity discount and a pay less

12811
06:43:42,900 --> 06:43:45,600
pay less now pay more later put together as one

12812
06:43:45,600 --> 06:43:47,800
this was the thing that got them to engage

12813
06:43:47,800 --> 06:43:50,566
so free trial start 3 99 a month

12814
06:43:50,566 --> 06:43:53,866
oh wait let me give you two years of newsletters today

12815
06:43:53,866 --> 06:43:55,100
and give you this discount

12816
06:43:55,100 --> 06:43:56,766
if you choose to skip your trial

12817
06:43:57,000 --> 06:43:59,466
and then of course the uh

12818
06:43:59,466 --> 06:44:01,200
the back end on that one was uh

12819
06:44:01,200 --> 06:44:01,633
the business

12820
06:44:01,633 --> 06:44:03,300
you know Upsold Consulting and things like that

12821
06:44:03,300 --> 06:44:04,266
if it were me

12822
06:44:04,266 --> 06:44:05,966
this is just that that particular business

12823
06:44:05,966 --> 06:44:08,900
if it were me I would do buy X get y free here

12824
06:44:08,900 --> 06:44:10,600
so now that I've got the continuity

12825
06:44:10,600 --> 06:44:13,033
I would then say great now that you're in continuity

12826
06:44:13,033 --> 06:44:15,600
if you buy seven I'll give you five

12827
06:44:15,966 --> 06:44:17,900
and then I can front load even more cash

12828
06:44:18,000 --> 06:44:20,800
now if if I know that people stay on average 2 years

12829
06:44:20,800 --> 06:44:22,433
then I wouldn't do that cause that would lose me money

12830
06:44:22,433 --> 06:44:23,000
but if people stay

12831
06:44:23,000 --> 06:44:24,500
let's say on average another 3 months

12832
06:44:24,500 --> 06:44:26,466
then it makes sense to do buy 6 get 6

12833
06:44:26,466 --> 06:44:30,000
cause I still double LTV and get that cash up front

12834
06:44:31,500 --> 06:44:33,666
so these were actually my original notes

12835
06:44:33,666 --> 06:44:37,066
so I I wanted to show you how mine actually looked um

12836
06:44:37,066 --> 06:44:38,766
and I've changed some of the names

12837
06:44:38,833 --> 06:44:40,700
to make them a little bit more like friendly

12838
06:44:40,966 --> 06:44:42,166
but this is actually what it looked like

12839
06:44:42,166 --> 06:44:43,766
in terms of how I would design

12840
06:44:44,166 --> 06:44:44,866
the money models

12841
06:44:44,866 --> 06:44:47,766
and so the possibilities really are endless

12842
06:44:47,766 --> 06:44:49,700
so let's go through steps for making your own

12843
06:44:49,700 --> 06:44:51,666
so step one is you start with an attraction offer

12844
06:44:51,666 --> 06:44:53,633
all always starts with getting people to engage

12845
06:44:53,633 --> 06:44:55,200
getting leads to engage with you

12846
06:44:55,300 --> 06:44:57,200
step two is you pick an upsell offer

12847
06:44:57,200 --> 06:44:58,666
you figure out okay the people have come in

12848
06:44:58,666 --> 06:44:59,766
they're coming off when your money back

12849
06:44:59,766 --> 06:45:01,700
they're coming on uh buy X y free

12850
06:45:01,700 --> 06:45:03,566
they're coming on uh decoy offer

12851
06:45:03,566 --> 06:45:04,300
whatever it is they're coming on

12852
06:45:04,300 --> 06:45:05,466
the front end you say great

12853
06:45:05,466 --> 06:45:07,300
now I'm either gonna do a menu up sell

12854
06:45:07,300 --> 06:45:08,900
I'm gonna do an anchor anchor up sell

12855
06:45:08,900 --> 06:45:10,033
I'm gonna do a rollover up sell

12856
06:45:10,033 --> 06:45:12,200
all of those things you can use as your second

12857
06:45:12,200 --> 06:45:14,566
second piece then you can pick your down sell offer

12858
06:45:14,566 --> 06:45:16,400
so what if they say no to any of these other offers

12859
06:45:16,400 --> 06:45:18,100
well we have our entire down sell flow

12860
06:45:18,100 --> 06:45:20,500
which is we start with payment plans uh

12861
06:45:20,500 --> 06:45:21,833
then we do a free trial

12862
06:45:21,833 --> 06:45:23,366
or we do payment plan to feature down sell

12863
06:45:23,366 --> 06:45:24,566
then we go to free trial

12864
06:45:25,066 --> 06:45:26,233
you just pick the ones that you know

12865
06:45:26,233 --> 06:45:27,966
that you can execute on right now

12866
06:45:27,966 --> 06:45:29,900
step 4 then you pick a continuity offer

12867
06:45:29,900 --> 06:45:31,666
and the result is that you get your cash back

12868
06:45:31,666 --> 06:45:34,466
in 30 days more customers and make more money

12869
06:45:34,500 --> 06:45:35,433
so here's some notes

12870
06:45:35,433 --> 06:45:37,700
one perfect one of these at a time

12871
06:45:37,700 --> 06:45:39,300
if you try and do all four at once

12872
06:45:39,300 --> 06:45:40,666
or six of these things at once

12873
06:45:40,666 --> 06:45:42,166
you're you're gonna break your business

12874
06:45:42,166 --> 06:45:44,600
like I strongly recommend just start with one

12875
06:45:44,600 --> 06:45:46,266
one is enough there's already enough complexity

12876
06:45:46,266 --> 06:45:48,066
you doing anything new that you haven't done before

12877
06:45:48,066 --> 06:45:49,966
I try to include as many important notes as I know

12878
06:45:49,966 --> 06:45:51,233
to make these things work

12879
06:45:51,233 --> 06:45:52,633
in these trainings and in the book

12880
06:45:52,633 --> 06:45:54,200
there's some things that are in this

12881
06:45:54,433 --> 06:45:55,466
a video training that are in the book

12882
06:45:55,466 --> 06:45:56,233
there's some things in the book

12883
06:45:56,233 --> 06:45:57,266
that are in the video training

12884
06:45:57,433 --> 06:45:58,800
it's the way it is uh

12885
06:45:59,000 --> 06:46:01,300
so read both if you're really serious about it

12886
06:46:01,300 --> 06:46:03,200
but if you have enough from either of them

12887
06:46:03,200 --> 06:46:05,500
by all means please take action alright

12888
06:46:05,500 --> 06:46:08,866
now if you are going to start one of these things

12889
06:46:08,866 --> 06:46:10,166
start it with a lower price

12890
06:46:10,166 --> 06:46:11,266
get people to say yes

12891
06:46:11,266 --> 06:46:12,866
and then start raising prices in stages

12892
06:46:12,866 --> 06:46:14,066
that's my recommendation

12893
06:46:14,066 --> 06:46:16,766
payment plans based on how I told you to present the

12894
06:46:17,166 --> 06:46:18,200
the discounted rate

12895
06:46:19,000 --> 06:46:19,466
uh basically

12896
06:46:19,466 --> 06:46:21,566
the prepayment discount versus the payment plan rate

12897
06:46:21,566 --> 06:46:22,700
is a great way to get

12898
06:46:22,700 --> 06:46:24,600
kind of a look into the future of what prices

12899
06:46:24,633 --> 06:46:25,766
the market will sustain

12900
06:46:25,766 --> 06:46:28,433
I like this little saying simple scales fancy fails

12901
06:46:28,433 --> 06:46:31,266
I want to have as few of these as humanly possible

12902
06:46:31,566 --> 06:46:33,566
because the fewer pieces I have in my business

12903
06:46:33,566 --> 06:46:34,933
the fewer things can break

12904
06:46:35,033 --> 06:46:37,233
and so I would rather start with the simplest possible

12905
06:46:37,233 --> 06:46:38,500
thing that accomplishes the objective

12906
06:46:38,500 --> 06:46:39,800
which is that I can offset my cost

12907
06:46:39,800 --> 06:46:40,700
to acquire customers

12908
06:46:40,700 --> 06:46:42,666
I can recycle that cash within 30 days

12909
06:46:42,666 --> 06:46:44,266
and I can keep scaling basically

12910
06:46:44,266 --> 06:46:46,400
removing acquisition is the bottleneck in my business

12911
06:46:46,666 --> 06:46:47,700
once I've accomplished that

12912
06:46:47,700 --> 06:46:49,100
we've accomplished our objective

12913
06:46:49,100 --> 06:46:50,833
we no longer need outside money to scale

12914
06:46:50,833 --> 06:46:51,700
which is pretty sweet

12915
06:46:51,700 --> 06:46:53,066
this is a little bit of an advanced tip

12916
06:46:53,066 --> 06:46:55,200
affiliate products can fill money model gaps

12917
06:46:55,233 --> 06:46:56,033
so if you're like okay

12918
06:46:56,033 --> 06:46:58,433
well I want to do a by X y free then just do a by X

12919
06:46:58,433 --> 06:46:59,966
y free on someone else's product

12920
06:46:59,966 --> 06:47:01,600
so then you can still sell your main thing

12921
06:47:01,600 --> 06:47:02,300
and then use somebody

12922
06:47:02,300 --> 06:47:03,633
else's product that you send traffic to

12923
06:47:03,633 --> 06:47:04,300
so you can get cash

12924
06:47:04,300 --> 06:47:06,033
you have no operational constraints now

12925
06:47:06,033 --> 06:47:07,666
you can use that for complimentary services

12926
06:47:07,666 --> 06:47:08,466
rather than something that's gonna

12927
06:47:08,466 --> 06:47:09,766
take away from your core offer

12928
06:47:09,900 --> 06:47:12,200
you can turn attraction offers into continuity offers

12929
06:47:12,200 --> 06:47:14,366
automatically just with renewal by X

12930
06:47:14,366 --> 06:47:15,900
y free for example if I said buy 6

12931
06:47:15,900 --> 06:47:17,566
get 6 it becomes a continuity offer

12932
06:47:17,566 --> 06:47:19,166
if after the end of that first year

12933
06:47:19,166 --> 06:47:20,533
it rolls into continuity

12934
06:47:20,600 --> 06:47:22,300
if I do win your money back and say hey

12935
06:47:22,300 --> 06:47:23,066
after this period

12936
06:47:23,066 --> 06:47:26,166
you then roll into continuity if I say decoy offer

12937
06:47:26,166 --> 06:47:28,966
I could say hey you paid you can either do this uh

12938
06:47:29,166 --> 06:47:29,866
you know this

12939
06:47:29,866 --> 06:47:31,200
this simple thing that's not that good

12940
06:47:31,200 --> 06:47:32,600
or this amazing thing for more money

12941
06:47:32,600 --> 06:47:34,233
that has a guarantee after that period

12942
06:47:34,233 --> 06:47:35,366
it rolls into continuity

12943
06:47:35,366 --> 06:47:37,166
so you can take any attraction offer that I had

12944
06:47:37,166 --> 06:47:38,433
and just immediately turn into continuity

12945
06:47:38,433 --> 06:47:40,200
by just saying adding a clause that says

12946
06:47:40,200 --> 06:47:41,666
it rolls into continuity at this price

12947
06:47:41,666 --> 06:47:42,433
and again

12948
06:47:42,433 --> 06:47:44,466
you can mix and match these however you like so I

12949
06:47:44,466 --> 06:47:45,666
I present them in this order

12950
06:47:45,666 --> 06:47:47,700
because this is the most logical order that I can

12951
06:47:47,700 --> 06:47:50,633
think of and as I have used them in my businesses

12952
06:47:50,633 --> 06:47:51,600
but this is no

12953
06:47:51,600 --> 06:47:55,233
in no way a limitation on your ability to innovate

12954
06:47:55,233 --> 06:47:57,200
and honestly I want you I want you to send me

12955
06:47:57,200 --> 06:47:58,300
all the cool money models you guys figure out

12956
06:47:58,300 --> 06:47:59,266
like that's the point

12957
06:47:59,266 --> 06:48:01,066
this is me just showing you all the stuff that I know

12958
06:48:01,066 --> 06:48:02,366
that I could fit into a presentation

12959
06:48:02,366 --> 06:48:04,666
within a reasonable amount of time um

12960
06:48:04,666 --> 06:48:06,766
and so again right you can use attraction offers

12961
06:48:06,766 --> 06:48:07,566
upsell

12962
06:48:07,966 --> 06:48:09,433
anything that you can that you can put your mind to

12963
06:48:09,433 --> 06:48:10,866
you can figure out okay

12964
06:48:11,000 --> 06:48:12,900
so that is how you make the money model

12965
06:48:12,900 --> 06:48:15,533
and let's go to 10 years in 10 minutes

12966
06:48:17,366 --> 06:48:18,300
so we just walked through

12967
06:48:18,300 --> 06:48:19,600
how to make your own money model

12968
06:48:19,600 --> 06:48:21,233
now we're gonna do 10 years of my life

12969
06:48:21,233 --> 06:48:23,433
more like 13 or 14 uh

12970
06:48:23,433 --> 06:48:24,800
but 10 years in 10 minutes sounds sexier

12971
06:48:24,800 --> 06:48:26,233
so we're gonna call it that alright

12972
06:48:26,233 --> 06:48:26,600
so

12973
06:48:26,600 --> 06:48:28,200
where money model fits in the grand scheme of things

12974
06:48:28,200 --> 06:48:29,766
so my first broke 100 million dollar offers

12975
06:48:29,766 --> 06:48:31,066
answer the question what should I sell

12976
06:48:31,066 --> 06:48:33,500
answer an offer so good people feel stupid saying no

12977
06:48:33,500 --> 06:48:35,266
my second book 100 Million Dollar leads

12978
06:48:35,266 --> 06:48:36,600
answer the next natural question

12979
06:48:36,600 --> 06:48:37,800
how do I find these people

12980
06:48:37,800 --> 06:48:40,033
answer you advertise this book

12981
06:48:40,033 --> 06:48:41,200
100 Million Dollar Money Models

12982
06:48:41,200 --> 06:48:42,633
answers the next natural question

12983
06:48:42,633 --> 06:48:44,000
how do we get them to buy

12984
06:48:44,000 --> 06:48:46,900
answer a money model so what we covered

12985
06:48:47,066 --> 06:48:48,866
a money model is a series of offers

12986
06:48:48,866 --> 06:48:50,400
designed to increase how many customers you get

12987
06:48:50,400 --> 06:48:52,333
how much they pay and how fast they pay it

12988
06:48:52,366 --> 06:48:54,100
it's a deliberate series of offers

12989
06:48:54,166 --> 06:48:56,200
a good money model makes more profit from a

12990
06:48:56,200 --> 06:48:57,900
customer than it cost to get and service

12991
06:48:57,900 --> 06:48:59,233
them in the first 30 days

12992
06:48:59,233 --> 06:49:00,400
that's the bare minimum

12993
06:49:00,400 --> 06:49:02,266
a 100 million dollar money model

12994
06:49:02,266 --> 06:49:03,900
makes more profit from one customer

12995
06:49:03,900 --> 06:49:05,433
than it cost to get and service

12996
06:49:05,433 --> 06:49:07,666
many customers in the first 30 days

12997
06:49:07,666 --> 06:49:09,433
which removes cash as a limited resource

12998
06:49:09,433 --> 06:49:10,500
scaling your business

12999
06:49:10,666 --> 06:49:12,366
this is what gives you limitless scale

13000
06:49:12,400 --> 06:49:13,733
this is how I've scaled

13001
06:49:14,266 --> 06:49:17,200
let's see I got Allen from zero to 1.7 million a month

13002
06:49:17,200 --> 06:49:18,800
in six months I got Jim

13003
06:49:18,800 --> 06:49:22,100
launch from zero to 4.4 million a month in 20 months uh

13004
06:49:22,100 --> 06:49:24,033
we've gotten I can't tell you the school metrics

13005
06:49:24,033 --> 06:49:26,133
I'll just say that they're even better

13006
06:49:26,433 --> 06:49:28,033
uh and um

13007
06:49:28,033 --> 06:49:29,800
we have other copies of the portfolio that we've scaled

13008
06:49:29,800 --> 06:49:31,533
at that same level of speed

13009
06:49:31,833 --> 06:49:34,300
alright and so if you can master this skill

13010
06:49:34,300 --> 06:49:35,166
this may be the single

13011
06:49:35,166 --> 06:49:36,400
most valuable thing that I can give you

13012
06:49:36,400 --> 06:49:37,900
which is why the sub headline of this book is

13013
06:49:37,900 --> 06:49:39,066
how to make money

13014
06:49:39,066 --> 06:49:40,700
money models have four types of offers

13015
06:49:40,700 --> 06:49:41,866
attraction offers upsell offers

13016
06:49:41,866 --> 06:49:43,666
downsell offers and continuity offers

13017
06:49:43,666 --> 06:49:44,400
attraction offers

13018
06:49:44,400 --> 06:49:46,400
get customers by offering something free or a discount

13019
06:49:46,400 --> 06:49:49,266
often they also make money by offering a better deal

13020
06:49:49,266 --> 06:49:51,100
at a higher price that we covered

13021
06:49:51,100 --> 06:49:53,400
we covered five we covered win your money back

13022
06:49:53,400 --> 06:49:55,566
which is where you set a goal for the customer

13023
06:49:55,566 --> 06:49:56,666
and tell them how to reach it

13024
06:49:56,666 --> 06:49:57,633
and if they reach it

13025
06:49:57,633 --> 06:49:59,500
then they qualify to get their money back or get it

13026
06:49:59,500 --> 06:50:01,566
as store credit we covered giveaways

13027
06:50:01,566 --> 06:50:03,500
where you advertise a chance to win a big prize

13028
06:50:03,500 --> 06:50:04,900
in exchange for contact information

13029
06:50:04,900 --> 06:50:06,900
and anything else that you want from this prospect

13030
06:50:06,900 --> 06:50:09,266
after picking a winner you offer everyone else a

13031
06:50:09,266 --> 06:50:11,200
the big prize at a discounted price

13032
06:50:11,200 --> 06:50:12,266
in second place

13033
06:50:12,433 --> 06:50:15,000
the decoy offers are also attraction offers

13034
06:50:15,000 --> 06:50:16,966
where you advertise a free or discounted offer

13035
06:50:17,000 --> 06:50:18,866
when the lead asks to learn more

13036
06:50:18,866 --> 06:50:21,400
you also present a more valuable premium offer

13037
06:50:21,500 --> 06:50:23,700
the premium offer includes more features benefits

13038
06:50:23,700 --> 06:50:24,066
bonuses

13039
06:50:24,066 --> 06:50:26,766
guarantees and so on and gets more people to buy it

13040
06:50:27,166 --> 06:50:28,466
buy X get y free

13041
06:50:28,466 --> 06:50:29,900
you offer customers free stuff

13042
06:50:29,900 --> 06:50:31,400
in exchange for buying stuff

13043
06:50:31,400 --> 06:50:32,266
for money

13044
06:50:32,400 --> 06:50:34,433
the more free stuff and the higher it's value

13045
06:50:34,433 --> 06:50:36,866
the more people buy X to get y free

13046
06:50:37,300 --> 06:50:38,966
pay less now or pay more later

13047
06:50:38,966 --> 06:50:41,166
you give people a choice to pay full price later

13048
06:50:41,166 --> 06:50:43,900
or pay a discounted price now for additional benefits

13049
06:50:43,966 --> 06:50:45,400
we also did free with consumption

13050
06:50:45,400 --> 06:50:47,266
which I won't bonus here but fundamentally

13051
06:50:47,266 --> 06:50:49,033
you give away a lot of free value

13052
06:50:49,033 --> 06:50:49,766
and that increases

13053
06:50:49,766 --> 06:50:51,666
the likely people buy a very expensive thing from you

13054
06:50:51,666 --> 06:50:52,800
the more expensive the thing

13055
06:50:52,800 --> 06:50:54,733
the longer and the more free stuff you give them

13056
06:50:54,733 --> 06:50:55,800
then we have upsell offers

13057
06:50:55,800 --> 06:50:57,500
which is are whatever you offer next

13058
06:50:57,500 --> 06:51:00,266
that is my very literal scientific thing

13059
06:51:00,300 --> 06:51:01,966
try and break like fight me

13060
06:51:01,966 --> 06:51:04,000
an upsell is whatever you offer next alright

13061
06:51:04,000 --> 06:51:06,100
so typically it's gonna be more better or newer

13062
06:51:06,100 --> 06:51:07,733
version of whatever they just bought

13063
06:51:08,066 --> 06:51:10,766
these can get you lots of cash fast

13064
06:51:10,766 --> 06:51:13,066
we covered 4 the classic upsell

13065
06:51:13,066 --> 06:51:13,700
where you offer the

13066
06:51:13,700 --> 06:51:14,900
solution to customer's next problem

13067
06:51:14,900 --> 06:51:16,266
the moment they become aware of it

13068
06:51:16,266 --> 06:51:18,766
you can't have X without y the menu upsell

13069
06:51:18,766 --> 06:51:20,966
you tell customers which options they don't need

13070
06:51:20,966 --> 06:51:22,666
then tell them which one they do need

13071
06:51:22,666 --> 06:51:24,100
and how to get the value from it

13072
06:51:24,100 --> 06:51:26,433
prescribe and you don't need that

13073
06:51:26,433 --> 06:51:28,200
you need this the anchor upsells

13074
06:51:28,200 --> 06:51:30,066
you offer the most expensive thing first

13075
06:51:30,066 --> 06:51:32,100
if the customer balks you offer a much cheaper

13076
06:51:32,100 --> 06:51:33,866
and still acceptable alternative

13077
06:51:34,166 --> 06:51:35,666
no worries you don't care about X

13078
06:51:35,666 --> 06:51:37,166
this may be a better fit for you

13079
06:51:37,166 --> 06:51:39,033
d rollover upsells you credit

13080
06:51:39,033 --> 06:51:40,866
some or all of a customer's previous purchase

13081
06:51:40,866 --> 06:51:43,633
towards your next offer since you already spent $500

13082
06:51:43,633 --> 06:51:45,966
I'll just credit that towards staying a full year

13083
06:51:46,100 --> 06:51:47,866
pick your price which I ended up not including this

13084
06:51:47,866 --> 06:51:49,400
I'll probably make a YouTube video about it

13085
06:51:49,400 --> 06:51:49,800
down sell

13086
06:51:49,800 --> 06:51:53,466
offers are whatever you offer after someone says no

13087
06:51:53,466 --> 06:51:55,666
that's my scientific uh answer for that

13088
06:51:55,666 --> 06:51:57,366
and by turning no's into yeses

13089
06:51:57,366 --> 06:51:59,700
you make more money we covered three of my favorites

13090
06:51:59,766 --> 06:52:00,866
so payment plan downsells

13091
06:52:00,866 --> 06:52:02,566
you offer the same product at the same price

13092
06:52:02,566 --> 06:52:04,633
but they pay some now and the rest over time

13093
06:52:04,633 --> 06:52:05,366
when you get paid

13094
06:52:05,366 --> 06:52:07,566
let's do half now and half then trial with penalty

13095
06:52:07,566 --> 06:52:09,800
you let customers try your product or service for free

13096
06:52:09,800 --> 06:52:11,800
so long as they meet your terms

13097
06:52:11,800 --> 06:52:12,433
if they do

13098
06:52:12,433 --> 06:52:13,833
then they have a better chance of becoming paying

13099
06:52:13,833 --> 06:52:15,200
customers if they don't

13100
06:52:15,200 --> 06:52:16,600
they pay if you do X

13101
06:52:16,600 --> 06:52:17,066
y and Z

13102
06:52:17,066 --> 06:52:18,333
I'll let you start for free

13103
06:52:18,366 --> 06:52:19,233
feature downsells

13104
06:52:19,233 --> 06:52:22,000
you lower prices by changing what the customer gets

13105
06:52:22,033 --> 06:52:24,200
I offer lower quantity lower quality

13106
06:52:24,200 --> 06:52:25,433
or lower price alternatives

13107
06:52:25,433 --> 06:52:28,100
or cut optional components altogether

13108
06:52:28,233 --> 06:52:29,633
if you're okay without a guarantee

13109
06:52:29,633 --> 06:52:32,600
I can knock off $400 that's how that works

13110
06:52:32,600 --> 06:52:34,133
then we had continuity offers

13111
06:52:34,166 --> 06:52:35,666
which provide ongoing value

13112
06:52:35,666 --> 06:52:37,366
that customers make ongoing payments for

13113
06:52:37,366 --> 06:52:38,266
until they cancel

13114
06:52:38,400 --> 06:52:39,966
these boost the profit of every customer

13115
06:52:39,966 --> 06:52:41,433
and give you one last thing to sell

13116
06:52:41,433 --> 06:52:43,000
we covered three of my favorites

13117
06:52:43,266 --> 06:52:46,066
Continuity bonus offers so with a continuity bonus

13118
06:52:46,066 --> 06:52:47,900
you give the customer an awesome thing

13119
06:52:47,900 --> 06:52:49,566
if they sign up today typically

13120
06:52:49,566 --> 06:52:51,200
the bonus itself is more valued than the first

13121
06:52:51,200 --> 06:52:52,833
continuity payment if you sign up today

13122
06:52:52,833 --> 06:52:53,600
you'll also get X y

13123
06:52:53,600 --> 06:52:55,766
Z valuable thing and if you want them to stick

13124
06:52:55,766 --> 06:52:57,033
you can continue to give them bonuses

13125
06:52:57,033 --> 06:52:59,566
to maintain the service continuity discount offers

13126
06:52:59,566 --> 06:53:00,666
we covered as the second type

13127
06:53:00,666 --> 06:53:03,300
we covered first month back end commitments

13128
06:53:03,300 --> 06:53:05,566
and you give the customer free time now

13129
06:53:05,566 --> 06:53:08,066
now or later if they sign up today

13130
06:53:08,066 --> 06:53:09,266
and so the key point is that

13131
06:53:09,266 --> 06:53:10,766
there's four different places that you can spread it

13132
06:53:10,766 --> 06:53:11,866
out at the front

13133
06:53:11,866 --> 06:53:13,100
at the end in the middle

13134
06:53:13,100 --> 06:53:14,833
in between that's the point

13135
06:53:14,833 --> 06:53:16,200
spread out over the whole thing

13136
06:53:16,200 --> 06:53:17,233
but that is fundamentally

13137
06:53:17,233 --> 06:53:19,400
how continuity offers work to get people to sign up

13138
06:53:19,466 --> 06:53:21,000
then we have the way fee offers

13139
06:53:21,000 --> 06:53:23,166
so first you ask customer to pay a starter fee

13140
06:53:23,166 --> 06:53:24,866
as part of joining a month to month program

13141
06:53:24,866 --> 06:53:26,766
then you offer discount the entire fee

13142
06:53:26,800 --> 06:53:28,100
if they commit to the longer term

13143
06:53:28,100 --> 06:53:29,400
if they cancel inside the term

13144
06:53:29,400 --> 06:53:31,366
they pay the fee premium which I didn't

13145
06:53:31,366 --> 06:53:33,266
I cut from this one I'll make a YouTube video about it

13146
06:53:33,266 --> 06:53:35,200
cause I think it really only applies to software

13147
06:53:35,200 --> 06:53:36,466
and I thought that was too niche

13148
06:53:36,700 --> 06:53:39,833
alright you build money models one stage at a time

13149
06:53:39,833 --> 06:53:41,800
once I get customers reliably

13150
06:53:42,000 --> 06:53:44,800
then I make sure that they pay for themselves reliably

13151
06:53:44,900 --> 06:53:47,033
then I make sure that they pay for other customers

13152
06:53:47,033 --> 06:53:47,833
reliably

13153
06:53:47,866 --> 06:53:50,966
then I start maximizing each customer's long term value

13154
06:53:51,000 --> 06:53:53,300
then I print as much money as I possibly can

13155
06:53:53,300 --> 06:53:56,100
bottom line the knowledge in these bullets

13156
06:53:56,100 --> 06:53:58,566
brought me more free and profitable customers

13157
06:53:58,566 --> 06:54:00,100
than I've known what to do with

13158
06:54:00,200 --> 06:54:02,466
if executed they will do the same for you

13159
06:54:02,466 --> 06:54:03,600
and with that

13160
06:54:03,666 --> 06:54:06,100
cash will no longer be a constraint in your business

13161
06:54:06,266 --> 06:54:08,800
I hope that this book and this training

13162
06:54:08,866 --> 06:54:10,666
helps you guys grow your dream

13163
06:54:10,666 --> 06:54:12,366
as big as you darn well please

13164
06:54:13,466 --> 06:54:15,300
and that is 10 years in 10 minutes

13165
06:54:15,400 --> 06:54:17,766
so in the next one we'll just put it all together

13166
06:54:17,766 --> 06:54:20,166
and put a nice bow on it and we'll wrap this puppy up

13167
06:54:22,100 --> 06:54:24,100
alright we just covered 10 years in 10 minutes

13168
06:54:24,100 --> 06:54:26,866
so now let's put this whole thing together in a bow

13169
06:54:26,866 --> 06:54:29,366
we're rounding home we're going towards home plate

13170
06:54:29,366 --> 06:54:30,233
we're in the end zone

13171
06:54:30,233 --> 06:54:33,466
we're in the red zone we're finishing this out alright

13172
06:54:33,533 --> 06:54:36,766
so my quick final words so this is a

13173
06:54:36,766 --> 06:54:37,433
something that I finished

13174
06:54:37,433 --> 06:54:38,366
100 million dollar leads with

13175
06:54:38,366 --> 06:54:39,600
and I just it's something that I

13176
06:54:39,600 --> 06:54:40,500
I really believe a lot in

13177
06:54:40,500 --> 06:54:42,700
so this is a screenshot taken without permission

13178
06:54:42,766 --> 06:54:45,866
from Ray Dalio's book principles uh

13179
06:54:45,866 --> 06:54:47,266
and this is basically his his

13180
06:54:47,266 --> 06:54:49,100
his concept of learning principles overall

13181
06:54:49,100 --> 06:54:50,566
is that you have big goals

13182
06:54:51,166 --> 06:54:52,133
then you fail

13183
06:54:52,400 --> 06:54:54,100
then you learn principles from the failure

13184
06:54:54,100 --> 06:54:56,766
then you improve and then you set more audacious goals

13185
06:54:56,833 --> 06:54:59,100
and so fundamentally this is the learning process

13186
06:54:59,200 --> 06:55:00,866
my goal with all the stuff that I have

13187
06:55:00,866 --> 06:55:03,233
is that I just share the stuff that I've Learned

13188
06:55:03,233 --> 06:55:05,333
I'm not saying this is the only way to do business

13189
06:55:05,400 --> 06:55:06,966
I'm saying we've now done

13190
06:55:06,966 --> 06:55:09,633
we've built three businesses to her

13191
06:55:09,633 --> 06:55:10,400
four businesses

13192
06:55:10,400 --> 06:55:12,066
passed $100 million in enterprise value

13193
06:55:12,066 --> 06:55:14,266
two or three I think passed $100 million

13194
06:55:14,266 --> 06:55:16,166
I think the third is about to hit $100 million a year

13195
06:55:16,166 --> 06:55:18,366
plus an annual revenue and so

13196
06:55:18,700 --> 06:55:20,966
I can't say how to do $1 billion a year in sales

13197
06:55:20,966 --> 06:55:22,100
I don't I don't know that yet

13198
06:55:22,100 --> 06:55:24,300
but I can say they get to $100 million

13199
06:55:24,400 --> 06:55:25,900
we've done it multiple times

13200
06:55:25,900 --> 06:55:28,366
and in terms of enterprise value more times than that

13201
06:55:28,433 --> 06:55:31,500
and the stuff that I shared is the stuff that I know

13202
06:55:31,500 --> 06:55:34,566
works and so I recommend doing it that way

13203
06:55:34,566 --> 06:55:37,266
so that I can hopefully save you this part

13204
06:55:37,266 --> 06:55:40,300
and just have you go from here to here and beyond

13205
06:55:41,700 --> 06:55:43,166
and so I will read this uh

13206
06:55:43,466 --> 06:55:46,233
this fun little this fun little snapshot that uh

13207
06:55:46,233 --> 06:55:47,633
Layla got this is earlier on our career

13208
06:55:47,633 --> 06:55:50,400
this is before I became Instagram famous uh

13209
06:55:50,400 --> 06:55:52,766
and before I started making YouTube videos um

13210
06:55:52,766 --> 06:55:53,900
this is when I just done gym lunch

13211
06:55:53,900 --> 06:55:54,900
and we're just doing our own thing

13212
06:55:54,900 --> 06:55:56,700
being private um

13213
06:55:56,833 --> 06:55:58,466
and so Layla snapped this when I wasn't looking

13214
06:55:58,466 --> 06:55:59,433
and I was like damn

13215
06:55:59,433 --> 06:56:01,566
I look pensive AF uh

13216
06:56:01,566 --> 06:56:03,466
anyways this is the second time we taken a private jet

13217
06:56:03,466 --> 06:56:04,500
and it was dope

13218
06:56:04,633 --> 06:56:06,000
they figure if you go down with the ship

13219
06:56:06,000 --> 06:56:07,333
your seatbelt won't save you

13220
06:56:07,400 --> 06:56:09,166
regardless to every hard motherfucker

13221
06:56:09,166 --> 06:56:10,266
who's disappointing their parents

13222
06:56:10,266 --> 06:56:11,400
wives husbands

13223
06:56:11,400 --> 06:56:12,200
friends

13224
06:56:12,266 --> 06:56:15,100
fake friends and everyone else who doubts you No. 1

13225
06:56:15,100 --> 06:56:17,200
I'm your biggest fan No.2

13226
06:56:17,200 --> 06:56:19,533
it's about to get real so get hard fast

13227
06:56:19,600 --> 06:56:22,200
No. 3 you cannot lose if you do not quit

13228
06:56:22,233 --> 06:56:25,366
I used to repeat that to myself over and over again

13229
06:56:25,366 --> 06:56:26,766
when I didn't want to keep doing it

13230
06:56:26,766 --> 06:56:28,800
if you feel hopeless welcome to entrepreneurship

13231
06:56:28,800 --> 06:56:30,400
if you feel like you'll never make it

13232
06:56:30,400 --> 06:56:31,500
you're on the right path

13233
06:56:31,500 --> 06:56:32,900
if you feel like you're a disappointment to everyone

13234
06:56:32,900 --> 06:56:34,766
you know keep fucking moving

13235
06:56:34,800 --> 06:56:37,033
because at the end of the rainbow isn't a pot of gold

13236
06:56:37,033 --> 06:56:37,866
it's you

13237
06:56:37,866 --> 06:56:40,033
it's the real you that's been underneath all along

13238
06:56:40,033 --> 06:56:41,966
whispering in your ear just one more step

13239
06:56:41,966 --> 06:56:43,700
one more call one more sale

13240
06:56:44,100 --> 06:56:45,433
and when I say that I'm your biggest fan

13241
06:56:45,433 --> 06:56:47,900
it's because I was there and I know that

13242
06:56:47,900 --> 06:56:49,900
because I know exactly what it feels like

13243
06:56:49,900 --> 06:56:51,366
having both 100% confidence

13244
06:56:51,366 --> 06:56:52,866
and a thousand percent doubt

13245
06:56:52,900 --> 06:56:55,900
at the same time so here's all you gotta do

13246
06:56:56,066 --> 06:56:57,900
just keep moving keep fighting

13247
06:56:57,900 --> 06:56:59,933
keep improving your time will come

13248
06:57:00,000 --> 06:57:01,400
success is the only revenge

13249
06:57:01,800 --> 06:57:03,000
so it's been my great pleasure

13250
06:57:03,000 --> 06:57:04,266
putting this all together for you

13251
06:57:04,266 --> 06:57:05,633
um I hope that you

13252
06:57:05,633 --> 06:57:07,533
surpass me in every way humanly possible

13253
06:57:07,633 --> 06:57:09,466
if you do then I will have succeeded

13254
06:57:09,466 --> 06:57:11,000
if you die without sharing all your knowledge

13255
06:57:11,000 --> 06:57:13,366
you have wasted your life and I mean that

13256
06:57:13,600 --> 06:57:14,666
um making real business

13257
06:57:14,666 --> 06:57:15,766
education accessible to everyone

13258
06:57:15,766 --> 06:57:16,800
has been my personal mission

13259
06:57:16,800 --> 06:57:18,366
and it's been the joy of my life

13260
06:57:18,366 --> 06:57:20,066
the most joyful thing that I've done um

13261
06:57:20,066 --> 06:57:22,333
up to this point so I continue to do it

13262
06:57:22,433 --> 06:57:24,566
um and in accomplishing your dreams

13263
06:57:24,566 --> 06:57:25,966
you help me accomplish mine

13264
06:57:26,766 --> 06:57:29,233
so the possibilities are endless

13265
06:57:29,233 --> 06:57:30,600
I hope to hear the combinations

13266
06:57:30,600 --> 06:57:31,600
most nation puts together

13267
06:57:31,600 --> 06:57:33,533
so I can add them to the repertoire

13268
06:57:33,700 --> 06:57:35,033
if you have a company by the way

13269
06:57:35,033 --> 06:57:36,166
that deserve $1 million in profit

13270
06:57:36,166 --> 06:57:37,966
and is cash flowing and founder LED

13271
06:57:37,966 --> 06:57:39,300
you can go to acquisition.com

13272
06:57:39,300 --> 06:57:40,433
and we can see if we can help you scale

13273
06:57:40,433 --> 06:57:41,500
you can just hit the scale button

13274
06:57:41,500 --> 06:57:43,100
if you're looking to sell a business

13275
06:57:43,200 --> 06:57:44,600
we really like at this point

13276
06:57:44,600 --> 06:57:47,100
probably look at companies that are worth I don't know

13277
06:57:47,100 --> 06:57:49,966
$50 million plus like it should be a big business

13278
06:57:49,966 --> 06:57:50,666
and if you're not there yet

13279
06:57:50,666 --> 06:57:53,000
that's fine just go and we'll help you scale alright

13280
06:57:53,000 --> 06:57:55,300
and so um if you're at neither of those levels

13281
06:57:55,300 --> 06:57:56,266
then consider going through the

13282
06:57:56,266 --> 06:57:57,100
hundred million dollar offers

13283
06:57:57,100 --> 06:57:58,833
and a hundred million dollar leads books

13284
06:57:58,833 --> 06:58:00,300
and the corresponding trainings

13285
06:58:00,366 --> 06:58:01,600
they're free on my site

13286
06:58:01,600 --> 06:58:05,266
if you have $0 they are also $0 again on my site

13287
06:58:05,266 --> 06:58:06,700
if you're an audio person

13288
06:58:06,700 --> 06:58:10,033
you can listen to them um on my podcast

13289
06:58:10,033 --> 06:58:11,933
so the leads book and the audio

13290
06:58:11,966 --> 06:58:13,466
for the offers book are both there

13291
06:58:13,466 --> 06:58:14,600
so if you're like I'm broke as hell

13292
06:58:14,600 --> 06:58:16,933
I get it and that's why I have that stuff for free

13293
06:58:17,000 --> 06:58:17,433
alright

13294
06:58:17,433 --> 06:58:20,366
so if you're struggling to figure out who to sell to

13295
06:58:20,433 --> 06:58:22,966
you can go to acquisition.com forward slash Avatar

13296
06:58:22,966 --> 06:58:25,100
so this is like a single that I released uh

13297
06:58:25,100 --> 06:58:26,266
between books uh

13298
06:58:26,266 --> 06:58:27,566
because I got a lot of questions about like

13299
06:58:27,566 --> 06:58:29,100
really specific to Avatar stuff

13300
06:58:29,100 --> 06:58:30,366
so I wrote a whole chapter on that

13301
06:58:30,366 --> 06:58:31,500
that you can go grab alright

13302
06:58:31,500 --> 06:58:33,466
we'll just pop your email and we'll send it to you

13303
06:58:34,033 --> 06:58:35,666
um if you're struggling to figure out what to sell

13304
06:58:35,666 --> 06:58:37,100
that's what I made hundred million dollar offers for

13305
06:58:37,100 --> 06:58:39,400
you can scan the QR code if you're uh

13306
06:58:40,000 --> 06:58:42,000
struggling with getting people to buy my next book

13307
06:58:42,000 --> 06:58:43,766
will be on persuasion and sales maybe

13308
06:58:43,766 --> 06:58:46,000
I don't know we'll keep it mysterious uh

13309
06:58:46,000 --> 06:58:48,166
and if you want a job at acquisition.com

13310
06:58:48,166 --> 06:58:49,233
or one of our portfolio companies

13311
06:58:49,233 --> 06:58:50,300
we love hiring mozionation

13312
06:58:50,300 --> 06:58:51,566
just go to acquisition.com

13313
06:58:51,566 --> 06:58:54,100
forward slash careers slash open slash jobs

13314
06:58:54,266 --> 06:58:55,633
but probably just careers will take you there

13315
06:58:55,633 --> 06:58:57,900
and you can see all the openings across all of our

13316
06:58:58,066 --> 06:59:00,000
portfolio companies so if you're a savage

13317
06:59:00,000 --> 06:59:01,800
and it would take 5 people to replace in your business

13318
06:59:01,966 --> 06:59:04,800
we would like to talk to you beyond that

13319
06:59:05,000 --> 06:59:08,233
that is the end of my presentation and uh love you all

13320
06:59:08,233 --> 06:59:10,100
keep murdering it I meant what I said

13321
06:59:10,100 --> 06:59:12,400
you accomplishing your dreams accomplish mine

13322
06:59:12,400 --> 06:59:14,533
so keep crushing it out