How to build a $100,000,000 business…the sh@$ nobody will tell you..

Summary

• It's crucial to differentiate between an offer and a coaching program. An offer touches many components of a business and can have multiplicative effects on lead generation, sales, pricing, and profit.

• Focusing on the offer first is essential. If the offer doesn't resonate, lead generation and other subsequent business strategies won't matter.

• A superior product can drive business success, often outperforming other traditional marketing efforts like advertising. This can create a powerful word-of-mouth effect, which is quadratic in nature and can bring exponential returns.

• I’ve personally seen massive profit and client success by focusing on delivering a superior product that provides extreme value, much like with my gym launch company, which brought high returns on advertising spend and client success.

• One should seek to reduce the time to money when it comes to offers, providing immediate solutions and assuming success to boost the prospect's belief in the product.

• Solving a prospect’s every problem is key in making an offer compelling. It's like ensuring every part of a car engine works; missing one part can lead to failure.

• Price reflects value, and by increasing the quality of the prospects or offering more value, you can justifiably increase prices. High pricing also offers strategic advantages like more gross profit for re-investment.

• To create exceptional value in an offer, focus on delivering a dream outcome, increase the perceived likelihood of achievement, reduce time delay, and minimize effort and sacrifice.

• In marketing, talking about the granular challenges and problems solved by your offer can demonstrate expertise and differentiate you from competitors.

• When scaling from under a million to around three million in revenue, it's best to focus on one product, one avatar, and one channel for simplicity and efficiency.

• Increase the lifetime value of customers to scale from three to ten million in revenue; this could mean offering additional services or products that enhance the customer's experience and relationship with the business.

• Transparency and offering free, valuable content can help build goodwill in the market, which can compound faster than revenue and lead to business growth without the need for aggressive selling.

• My new mission is to help businesses already at around five million in revenue scale further by leveraging my expertise and experience in growing multiple businesses to that level and beyond.

Video

How To Take Action

I would suggest focusing on creating a killer offer first, because if the offer isn't strong, other efforts won't matter as much. It's important to make sure that the offer solves your prospect’s every problem like making sure every part of a car engine is working right.

A good way to add value is to aim for a superior product over a superior promotion. This could be by delivering extreme value quickly, which I did with the gym launch company, assuming success to boost belief. When you increase the perceived value, you can justify higher prices which lets you reinvest more into your business.

Remember, price reflects value. By giving more or improving your product, you can raise your prices. High pricing can also set you apart from competitors since you can offer more unique services or experiences that others can't.

To make your offer irresistible, focus on delivering the dream outcome for your customers, increase their belief in success, minimize the time and effort they need, and address all the granular challenges they may face.

For marketing, talk about the specific problems and challenges that your product or service solves, which shows your expertise and helps you stand out.

If your revenue is under a million, streamline by focusing on one product, one avatar (ideal customer), and one channel. This makes everything simpler and more efficient.

Once you're aiming for three million and above, work on increasing the lifetime value of your clients. This could mean selling additional products or services to enhance their experience.

Always be transparent and offer free, valuable content. This builds goodwill and can actually lead to business growth without aggressive selling tactics.

Lastly, remember, a quality product will drive business success and create a strong word-of-mouth effect that brings exponential returns, so prioritize that above all else.

Quotes by Alex Hormozi

"From a speed to money standpoint, changing someone's offer is about the easiest thing that you can do to better business intervention"

– Alex Hormozi

"Having a superior product and having intentions of truly always improving the product, that you can weather those storms because you and only you know your intentions"

– Alex Hormozi

"Most of the wealthiest people that I know try and invest in something one-time that will pay them forever"

– Alex Hormozi

"If the product is superior, the product will run on its own"

– Alex Hormozi

"One of the most under talked about concepts in the marketplace is goodwill and I think that goodwill compounds"

– Alex Hormozi

Full Transcript

alex has become a mentor to many a friend to me for sure and uh we're gonna be unpacking his book 100 million offers i do not have the hard copy because we are in lockdown right now and it is lost somewhere but it is right there this book has been hugely impactful for me and our community in real ways there's lots of stuff that you can dig into in the internet marketing world that's like exciting you know you watch a keynote from russell brunson or any of the greats and you're like freaking pumped out of your mind you believe you're one funnel away but reading a book i was like [ __ ] there's like so much good stuff in here it feels like it it's gonna work and then we applied it and lo and behold uh it worked but but here's where i want to start with you alex so our audience high ticket entrepreneurs when i talk to coaches and consultants about improving their offer they typically think like no i'm good like clients are getting great results we just need more calls we need better marketing and so i want you to start by sharing like what's the difference between an offer and a coaching program and then can you talk to us about why you always want to start with the offer i actually wrote the third book in the second book first and i wrote this book which is now the first book that came out third uh and hopefully you tracked what i just said because i barely did um and the reason i had to do that was with each book i started with the third book and i was like i actually kind of need this second book to make sense which was lead generation i was like well i finished the second book and i was like you know what if their offer is crap then that's not going to matter anyway so i have to start with the offer and so it kind of went in reverse and it's because like as i'm thinking through it i started thinking about the things that i would immediately want to look at in a business but usually there's these other weaknesses that are much stronger and from a speed to money standpoint changing someone's offer is about the easiest thing that you can do and a better business intervention um and the offer touches so many components of the business right so it touches the lead generation component so you get more people who are going to respond than who otherwise would have with a superior offer you get more people to buy than who otherwise would have you get higher pricing and more and more profit as a result of a better offer than you otherwise would and so with each of those situations they become multiplicative in their effects on the business and when you put them all together the offer is the lever on all of them and so i could you know for most businesses you could just turn the entire business around by fixing this one thing once that one thing is fixed then you get into okay how much how many different channels can we have access to to generate leads you know the third book is money model so how many different ways can we can we monetize the customer to increase our you know our cash conversion cycle or basically how quickly return a dollar so we can spend more uh on the acquisition which is the third book the reason we start with the offer is because i think in the marketing community at large and i say that uh because just about here everybody here is in the marketing community at large um this book i think was a hit at least i perceive it as a hit because it was the only book that i think has talked about the product and so no one talks about product in the marketing community and so i think it seems so far into many people but if you look in the software world they only talk about product and they don't care at all about marketing uh because they know and if you will allow me to expand on this for a quick second and then we can i'll get into the questions i'm gonna i'll share something with you that's been very very um impactful for me so a lot of people look at jim launch and they try and understand the success behind the company and for context for everyone here the first year i was in business in gym lunch uh at least once we switched the licensing model we took home 17 million dollars in profit for perspective let me pause for a second it was as [ __ ] insane for me as it might sound to you so it is not lost on me and we went from 3 million in profit the year before to 17. um and a lot of people looked at our funnels they thought you know alex's sales genie or it's it's it's our it's our creative it's our hooks it's all it's all these things and many people try to copy them but no one was able to duplicate the numbers and success in the scale um and it was because the product was superior i mean i see mark was here i know mark was one of our early clients he had a gym i guess now he's doing high ticket which is awesome the average client made 30 000 in their first 30 days that was the average which means half of people did better than that and so if you look at the internet marketing community at large i would i would doubt that there are many offers that produce that kind of result and so we were able to get 36 to one return on advertising and actually the first year we got a hundred to one return on our advertising um because honestly the advertising wasn't the thing that was doing the vast majority of the work it was word of mouth it was referrals and so people might see the ad but they had heard about it in three or four other places and i'm told that the book is having a similar effect it's on people's news feeds and things like that and for context everyone here there's no book funnel there's no upsells i've spent no dollars on advertising and it sells a thousand copies a day right now with no advertising i got reached out to people like hey man how are you how did you achieve this organic something with the with the book and i was like we just tried to write a really good book um and i think that it's it's it's often overlooked and so this is the piece that i'll finish with and then we'll we can we can rock in but if you think about the six acquisition channels that exist from clients right you've got paid media which is advertising of any kind you've got owned media which is your list of all your people you've got earned media which is the platforms that'll distribute your stuff organically like we're on facebook right now so this is an organic hones that's earned media right and then you've got the three people based which is you got manual outbound uh you've got affiliates and then you've got referrals and word word-of-mouth of those six that i just named five of them are linear in nature what i mean by that is that if i put a hundred dollars in i get a set or fixed ratio back so i put a hundred in i can get a thousand out where i do a hundred calls and i get x appointments right it's the same if there's a fixed ratio and then you just increase in scale right and with most of those they're diminishing in nature in terms of the more scale you add the return ratio diminishes with referrals word of mouth it is quadratic which means it's exponential and so it is the hardest one to achieve but once you achieve it it is the one that will pay you so handsomely that is worth the disproportionate investment of time and the difference between a good book and a great book is large this made a great book an exceptional or remarkable book or remark worthy as in it was so good that you had to tell someone about it is even harder right but that extra uh the extra amount that extra increment of return yields outsized returns in terms of the practical use of that value and so i think that for us so many people just you know slap a bunch of videos together and say this is my course uh rather than having the in-depth or trench knowledge to go from being good to great or going from great to being exceptional and i will tell you that having now which is weird i i feel like uh an older person in the internet marketing space now which is hilarious in terms of years uh in it rather than age the people who who continue uh to live on uh and not fizzle and pop are the ones who have superior product because usually the people who do not uh wither from the stress or the pressure of unhappy high ticket clients and so the only way you can weather that emotionally unless you have no conscience is by having a superior product and having intentions of truly always improving the products so that you can weather those storms because you and only you can know your intentions i think that would be at least my word to this and my test with acquisition.com which if you read in the book is kind of the venture that that i've been focusing on for the last year my goal with that business were really the portfolio of businesses is to grow it exclusively off of inbound because of the other five channels i've grown each of those to multiply figures in terms of how much i've been able to generate from them but i have never done um one off of kind of earned media and purely inbound and so um that was the goal and in order to do that we had to make sure that the product was truly exceptional and i can tell you that if the people that make much more money than me it seems to be a constant in that it is a one-time investment to make a superior product that has compounding returns most of the wealthiest people that i know try and invest in something one-time that will pay them forever whereas most of the poorest people i know try and consistently have to do things that they have to do over and over and over and over again you have to make new campaigns you have to make new reach outs you have to make new phone calls those are all things that you have to do in order to keep going and as soon as you stop them the business ends but if the product is superior the product will run on its own and coincidentally the profit is extremely great because you have no cost of acquisition you touched on a couple things there and obviously a big focus of what you see this around superior product but i would say um 100 agree but i would say also people can't uh distinguish the fact between the reality of the quality of a product and deception in the market right so can you talk a bit more about how your product is both your offer and it's not right it's not just about adding two more coaching calls a week it's not like i have my community on facebook or some other platform can you talk a bit more about like what that looks like with the offer it's kind of it it's kind of this really interesting thing of the it's the bridge between prospect and client right and so it has components of both sides it has components of promotion embedded within it but it also has components of product and so the offer is really communicating across the bridge what it's like to be a client to a prospect and so we're thinking about what are the problems what are every single problem both known and unknown and a little pro tip because if you read the books how i do it uh pro tip for everybody if you want to include bonuses include one or two bonuses that solve a problem that only occurs upon success so for example if i was taking on a company for acquisition.com then a bonus might be i'll also you know introduce you to all my tax shelter people also introduce you to my legal team also introduced my investor people who will help you um keep more of the money that we're going to be making right so we're going to solve a problem that's going to assume success and so all of a sudden your prospect is going to have a higher belief in that they're going to achieve it because why what other reason would you be solving problems uh that that assumed success right unless people were being successful to circle back to what you were saying earlier dan the perception right of the product um has to be the thing that appears valuable and your ability to do that will also be predicated on the true value of the product so it is it is both ways right um but the idea is and i think this might be contrary to some of the things that are in the internet marketing communities that i believe that you should solve every prospect's problem most things operate like a pipeline and so if you have 100 steps if you miss 99 it still won't work it's like a car engine like is there a more important part in the car engine than another part well they're all required so they are requisite pieces and i think most times people solve one or two of the things they might bring an engine uh and they might bring gasoline but they don't have wheels or they don't have spokes or they might not even have the nuts on the wheels right uh to keep them on and so it's really thinking through and i think that's where the the depth of knowledge is so important where like i tell this story and hopefully it'll illustrate the point here i believe in doing the really ugly unscalable stuff first so that you can have the depth of knowledge to to do the scalable thing a lot of people want to jump the gun and go straight to i mean i can't tell you the amount of times i've talked to quote agency owners who are like man these realtors can't make money on my leads and i actually had a a an agency that i worked with for almost a year on our software platform and every month i would just say why don't you just get a real estate license and actually work your leads and finally he did it and in his first month he made five times more money than he did three years prior because he actually knew what the [ __ ] he was talking about right and so gym launch became as big as it was because i spent two years on the road launching 33 different gyms in different markets in person working the front desk so we knew the nuances and the differences of what time of day to call and what cadence then what text to use in this type of market what types using this type of market and we were able to troubleshoot those things so easily and successfully that our client saw a disproportionate amount of success and then in the sales call and when in creating the offer we could say hey if you're if you're familiar with orange clapham talks about a flash troll right which is where you talk about all these little features and problems that they haven't even encountered yet that you have already solved and then in so doing you demonstrate such superior expertise to the person that they immediately trust you as an authority and then all of a sudden the remainder of the conversation is very easy because they know that they don't even have the perspective from which to make a judgment they transfer that that authority over to you to make a judgment on their behalf so i want you to kind of go deeper on something you just said because uh tied to that i've heard you talk about this a lot which is that people try and solve problems that don't exist when it comes to the scalability of their offer if they're scared to offer too much and they have zero clients or a few clients they go i just don't know how this is going to look at 50. and so can you talk about the kind of those spectrums of like easy to sell hard to sell easy to deliver hard to deliver so i think that most entrepreneurs would be best served especially in the beginning and so it's hard to make broad sweeping statements because there's always exceptions to them but by and large most entrepreneurs who are probably in this community selling high ticket coaching services would be best served selling a less scalable offer at higher ticket first and then piece by piece removing pieces that are less scalable and so you do that because you give higher touch to clients you have more more profit in your acquisition because most done for you models for example uh if done properly i'm not saying agency models because i'm not a big fan of agency models but um most done free models if done properly should yield excess cash and the issue becomes operational fulfillment right which is how i prefer to have my bottleneck in the operations and scale than in demand generation that is just my preference some people prefer different ways i prefer it that way um and so the easier something is to sell in general which is going to require more handholding in your part more services more things the easier it is to sell right on the flip side if you just sell a course via webinar it becomes very very difficult to sell in general you have to have very very high persuasive abilities in order to sell that and a pretty unique opportunity right if you're telling how to make how to run facebook ads i think that time has somewhat come and gone right and so uh the idea is i would prefer to be on the easier to sell part of the spectrum gain the experience generate the cash flow and then use the cash for to solve future problems of scale um and i think that that is a better sequence that has a higher likelihood of success for most people yeah and i would say there's a huge assumption baked into that which comes down to a really wildly uncommon opinion you have which is on pricing because all of that assumes that you're going to have then excess cash and enough to deliver and that it's priced right so can you talk a bit more about pricing because i think for most people we do what dan kennedy calls the wag pricing model which is just the wild ass guess or the industry norm right where you just go like what does this person do what does this person do great i'll be somewhere in the middle or a little bit cheaper so when we got into that you know in our first coaching business um which was obviously gym launch we uh the highest priced person at the time was 5k uh the lowest price people were kind of agencies doing 500 bucks a month so that was kind of the range of the marketplace and so when we came in our front-end program was 16k our back-end program was actually a three-year 126k program so the pricing was so vastly different than everyone else that it caused the prospects to take pause and say there must be something different going on here paul is there and then if you think about what a lot of people are seeing with the book or at least i'm told is that the book's kind of all over a lot of people's news feeds imagine you have this kind of pricing with all of this word of mouth that's surrounding it and then it creates this allure right and so the idea is that we have to charge so much in order to get the clients and prospects more invested because a in a very real way price confers value right so there's a story on the book but it's it's it's basically if you had three people thread try three different wines the high price the middle price and the low price and then rate them most people rate the highest price wine the best but the thing is is that when they do these studies they actually make all three wines the same and so in a very real way price does confer value your product that's number one number two is that if you change the quality or increase the quality of your prospects you will increase the quality of your products so what i mean by that is if i am working with uh somebody who's making five million dollars a year right and then i give them a book right dan all of a sudden that book to dan is worth two million dollars this year right if i give that to somebody who's never started a business before the book might be worth some inspiration and so there's a very real difference in the value that my product delivered based on the quality of my prospect independent of the change in my product and so the second point is that if you change and increase the quality of your prospects you can also charge your concurrently higher price based on the value that is true that you were delivering to that person the third piece is that i like having pricing power in general because there is a strong strategic advantage to being higher priced i just named two of them right in the marketplace but one of the biggest ones is that you have so much more gross profits left over that a you can spend more on the acquisition but b you can do things that other people can't and so you further eliminate or or separate yourself from the competition by being able to provide things that no one else can right so for example in the gym launch world because we had a lot of clients that are we still continue to have a lot of clients that are in the same markets we were able to spend 50 000 a month every month on testing advertisements and then we would just license those ads out to all of the facilities across right no one else could do that because i had the spare cash that i could just put into marketing and then only hand scratch off lottery winners to them that they could just go and cash in right because they already knew they worked and so i could hire a team just to build all this stuff for them and there weren't even franchisors at that time that we were doing that stuff and honestly they still don't and so we're able to still run a very high growth profit on even that product line and so the idea is like how can i do things that no one else can do and the thing is is i would start with the price first now obviously it has to be based in reality in terms of the value you can provide but a lot of times with the access gross profit you can in a very real way provide more value and so that's why in the book i like to anchor the pricing in the beginning because that just kind of sets the stage but then when we get into the value creation side of it it's like how can i how can i make it so likely that they are successful how can i get them to be successful in half the time and how can i do it so i can eliminate effort and sacrifice and for those who don't know the difference between effort and sacrifice effort is what someone has to do that they don't want to do that they weren't doing before they started working with you sacrifice is when they have to stop doing something that they enjoy doing that they were doing before they started working with you that they can no longer do and so the idea is how can i limit eliminate the effort and sacrifice cut the time in half and then increase the perceived likelihood that they're going to achieve the result that they want and so that was kind of the basis i mean in general if there was one summary picture for the book in terms of how to create value it's the value equation and so the remainder of the book is basically the executions the tactics around how do we actually do this how do we create a dream outcome that's appealing to the person right making a million dollars for most men is more appealing than being more handsome not saying that they don't want both but they probably want one more and in a real way a lot of guys would spend five hundred thousand dollars to make a million dollars but probably wouldn't spend five hundred thousand dollars to be more handsome or maybe they would but it depends on their income right perceived likely of achievement i'll give you an example here so if if you guys were if you had your if for i see a lot of guys on here but if your wife were getting uh plastic surgery or you're getting plastic surgery whatever right you have two surgeons that have the exact same they're gonna do the exact same surgery on you right the outcome's the same now so i'm i'm controlling for the outcome and showing you different pieces of the value equation if one of them was about to do their first surgery ever out of medical school and the other one was on their 10 000th surgery in their career which of them would you rather work with this one which one would you rather pay more this one you probably asked this guy to pay you because you were his first surgery right and so in a very real way the perceived likelihood of its achievement increases the value independent of the actual service being delivered and so that is why it's the second thing now most marketers focus all their attention on the top side of the equation this is what i did for the first few years of my career when i was at my gyms when i sold weight loss and then even in the beginning of gym launch it was all about how much money are you going to make and then [ __ ] loads of testimonials how much money you're going to make [ __ ] loads of testimonials but there are other ways to increase perceived likelihood of achievement which is kind of goes back to that flash role argument i was saying earlier which is here are all the things that you didn't even think about that i have already handled uh on your journey that you didn't even foresee which then shows my expertise that i know what i'm doing and so the goal is to increase these as much as possible now the second half of the equation are the detractors in a very real way in my opinion the bottom side of the equation is actually more powerful in persuasion than the top side and the reason is because it's very easy to make claims it's very easy to talk about the dream outcome right but it's much more difficult to actually decrease the time delay which why for us one of the major kpis we've always had as a company is how much cash someone generates in the first 14 days working with us right and so for us we drive towards that equation and for us right now for example the average cash collected in the first 14 days is 15 500 right for our client that is the average right and so with that i can have a big outcome in the first you know 14 days so they have a very short time delay between when they when they buy something and they begin to start experiencing the results right and so i'll give you a simple way of providing value look at what everyone else is doing in the market and do it in half the time right if all of a sudden for example as an extreme version of this i would say hey i'm selling a weight loss product i use weight loss because everyone understands it all right and as soon as you click this you look at you you pull your shirt up and you have a six-pack right you buy my six-pack program you click purchase and you have a six-pack immediately how valuable would that product be extraordinarily right and so the idea is we made the product more valuable not by changing the outcome not by changing the perceived like of achievement but by simply changing the time in which it took to achieve the outcome that was promised and so as a marketing example for example if i had a a marketing agency again which i'm not a huge fan of but if you had a marketing agency that was commoditized service based right if i were trying to provide more value i would say as soon as as soon as the contract is signed if the prospect's phone rang figuratively or their inbox you know was filled and they got a book call immediately with a qualified prospect that was booked 30 minutes after they got off the phone with you how much more valuable would that be than somebody that says hey it's gonna take 30 days to ramp up it'll take another 30 days to start seeing results so it's like 30 days after that for you to recoup and break even and then by month six but like you have i've already lost you right so much less valuable and so the idea is the time delay component is a massive area of value and if you look at the biggest companies in the world they look at time as one of the major drivers of value time is thing that most people value more than anything uber came in because it was more convenient right netflix came in because it was more convenient than doing the other things right which also ties into the second part of the bottom equation which is effort and sacrifice right and so the idea is again if i like weight loss again i'll just use the example we we asked susie right to give up waking up you know sleeping in right because she's got to wake up early to go to the gym right now she's sore every day so now she's got she's got effort and sacrifice that are associated she can't eat any of the foods that she likes anymore she's got to eat separate from her family her kids are making fun of her she goes out she misses her she can't drink champagne at her at her sister's wedding on top of that all like everything that she loves about life is gone right and and here's the best part it's gonna take her 12 months to maybe look a little better but still not be at her goal so no wonder it's so [ __ ] hard to sell and so the idea is how can we eliminate as many of these barriers as possible in the effort and sacrifice component so that we can make it as instant and as fast for them and the reason i made it a fraction is because in theory if you can get the bottom side of the equation to zero as in it's instant and there's no effort in the sacrifice then you have an infinitely valuable product right and if you think about like what amazon's doing right they're getting so close to literally you just like click one button on your phone or maybe it's i mean very soon it'll just be you talk out loud your phone will hear you through a lexus alexa and then a drone drops it off at your at your house two hours later they are shrinking that gap the effort and sacrifice and the time delay so much that the value becomes so infinite infinite and that's why they're becoming such a behemoth right and so when i think about products and how do we create value because a lot of people throw the term out right they're like god they've got to give value got to create value if you're like what is value like and so this is my best attempt at at writing down or at least compartmentalizing what i believe value to be in an equation so you can look at your own products and say how do we measure up here and perceive likelihood how do we measure pure effort and sacrifice how can we make things happen faster for them is there a dream outcome that we can communicate in a way that's more compelling or more relatable i'll give you a hack so one of the things that we did on our onboarding process that we switched was um so our so our sales team takes no string sales calls and they close the sale and they transfer over to the onboarding team and so for a very long time it was just hey so it says seems here that your goal is you're trying to make an extra ten thousand dollars a month awesome that's gonna help you do cool and so they were already impressed because we actually read the notes that were from their sales call mind blowing right but it increased their perceived likelihood of achievement because they're like oh these people are buttoned up right crazy by the way to have a handoff between sales and the first which they talk to after they give you money anyways what we started doing was we started asking them on the sales calls of course what is that like why is that why is ten thousand dollars the number why is that meaningful for you why not why not twenty eight thousand why not five thousand right like was there is there something as a result of having ten thousand dollars that is going to change in your life in one way or another because if there weren't there would there'd be no point in even making the money and so then they tell you the real reason which is uh you know we've got two kids and i really wish my wife could be at home with them whatever right and so what we do in the onboarding call is now we can tie more accurately hey so it shows here that what you're trying to do is trying to retire your wife all right so that's what we're going to try and help you do here with the program and what i need you to do in order to do that is you got to follow these steps so now all of a sudden we got way higher buy-in way higher compliance and we actually had higher conversions on the back end simply by changing the on-boarding process and not even changing the product you could make the argument change the auditing process is a part of the product but hopefully you understand my point so if you can more accurately depict the dream outcome to your prospect they will value it in a better way it'll also increase the perceived likelihood that's super good man and i i want to get your thoughts on something that i know that a good portion of the 130 people with us right now are probably thinking which is that they need to upgrade their market oh i want to charge more money so i'm going to go find the people that have more money and i can't tell you how often people like you know what are you qualifying for and say the dm's to get someone into a call they're like oh they've got to be making six figures i'm like why and they're like because they you know it's easier for them to pay for my program whatever it might be can you talk really quickly about niche slapping which is a big thing for us in the coaching space and then also the economics behind your pricing of gym launch and how much money the average gym owner makes yeah so those are a couple of things so i'll start in reverse order of what i remember from the question so uh so the average gym owner makes uh 29.50 a month of take-home income on about a 300 000 a year uh uh business right brick and mortar and so you're talking about 36 thousand dollars a year roughly um in take-home income it depends on the source of the data but it's around 30 to 36. and so our program was 16 000 up front right um and then the back-end program was 42 000 which is literally more than someone makes in a year and so the the idea so i'm not against you finding higher quality prospects if you can make your product so good that it will pay for itself immediately then that is where you really unlock basically unlimited money right if you can help people actually make the money to pay for your program rather than asking them to pay for the program and then get the result you you're tapping into like the universe right you don't you know there's no there's no limit on the amount of money that you can make and the reason that we were able to make so much is because we made so many people so much money like that's the real like there's no other secret to that like we made a lot of people a lot of money and as a result of that they were happy to pay us for the money that we were making them most people couldn't afford i would say 50 of the gyms that we sign up can't afford the next month's payment if we don't make the money so we have to make the money which is why most gym competitors have entered the space have never been able to get to a tenth of our size right it's because they they weren't able to operationalize the value the way we were able to so that's that's in terms of like the the value compared to the price in terms of the income of the person in terms of niche slapping the simplest answer i can give you might be might be a story so i was talking to again agency owner but i guess we live in the marketing world right different different agencies this is an agency coach all right so he coaches agencies he's like hey i'm getting all these dms about doing general business um do you think i should go into general business and i said i think that's a terrible idea there's a couple reasons one because i didn't think he had earned it yet um but second and probably more importantly the question is i was like have you reached the market cap the answer is no of course not doing 5 million a year in an industry that does 20 billion or 50 billion whatever it is in the entire marketing agency space he's probably not pretty close right so he had risen to his level of incompetence and so it didn't really matter him switching the niche that he was going to he was just going to rise up to his next level of incompetence which is going to be the same as what it is now but more realistically he would drop to two and a half on here raised to two and a half on here now be ceo of two businesses which you can only have like think about this how many publicly traded companies have a ceo that is being ceo of home depot and ceo of coca-cola he's like well i'm doing both right i'm running two companies because i'm gonna figure out which one explodes it's [ __ ] stupid right it's [ __ ] and yeah we do it all the time as entrepreneurs and so you have to pick and then you have to commit and then the hardships that you experience are the things that you have to perceive or at least for me that i perceive as barriers that no one else will go through there is that when i encounter them once i solve them someone else who comes behind me will encounter them and not know how to solve them and the more of these rungs that i pass the more difficult it is for someone to achieve the same thing and so at any of the markets but i tend to ask when people come to me i see what like let's say somebody's making five billion dollars a year i would just ask them because they're like hey man i'm thinking about switching about switching markets and i'm like well why they're like well i want to make more money i'm like cool i'm like well why don't you just double your business and still have one business and then inevitably with enough questions it's the answer becomes because i just don't know how right it's like well then let's solve that problem and then grow the business rather than just feed our egos and have a quick win because you have a couple dms of people who say they want general business coaching which will then inevitably flounder once you get into the real space against dudes who make way more money than you are much better at business and so like the reason you niche down is because you don't want to you don't want to fight against bigger competitors there is a time to become tony robbins right but most people aren't there and so it's much better to cater your marketing and your messaging and your product to an individual and in so doing provide outsized returns and value which you can then capitalize on right if i had a generic facebook ads program five years ago i might have made a few million dollars but because i was able to say hey i'm gonna copy and paste this here's every [ __ ] step of this process to turn eyeballs into gold immediately because i didn't have to tailor it right everything out of the box was exactly the way it needed to be for that prospect right so nothing else needed to change whereas the more wiggle you have in your product because it's individualized and variable between markets and avatars and things like that then all of a sudden your your value drops because you can provide because you're providing less of it in a very real way because otherwise every single one of the clients should have a personally catered uh program but you can't do that because you're not committing to a niche yeah chris just said there's so much to unpack here hurts um there was someone here i know that's uh being in our pipeline for all 50 years old uh runs a real estate coaching company he's just like this live is changing my life so when we're talking about an offer i think most everyone gets how this impacts the very end of their sales and marketing process in that short time at the end of a call where we go i think i can help would you like me to share a bit more about what that would look like right and and that's what we think that you're telling us to do is create something that makes that part really easy and of course having a great offer makes that part easier how do you feel like we should be thinking about and utilizing a grand slam offer to improve our marketing is it simply talking more about what it is that we do how do you think about that i think each of the bonuses that i was talking about kind of that flash roll of all of the all the problems that your prospect doesn't perceive yet like that in my opinion b2b advertising is all about demonstrating expertise in advance when you're creating a grand slam offer you have so many problems that are being solved that you can speak to them and ideally i would like to speak to them in a way that i know my competition is not solving them and so by doing that i'm strengthening myself and at the same time throwing rocks against my competitors because i know that i'm solving problems that they aren't and i'm doing that because i've actually done it and they have not and they're making it up because they're looking because they bought a course and how to be a guru and they never actually did [ __ ] right and so and many of your competitors are the same way of course not you because you're listening to this and that's not you of course but other people other people your competitors right are like that right and so the way to to get around that and be able to use the offer is again and have the in-depth knowledge of every single problem that's going to happen and then your marketing takes on its own unique language because everyone else tries to talk in features and benefits and promises and you can think this is what it means but when you can talk about the problems in a very specific way because you've experienced them because you went through it because you know that suzie's always going to [ __ ] complain about the music in the gym the bathrooms aren't clean enough mark might get a laugh out of that only a gym owner would know that but a marketer who's never been a gym owner wouldn't know that right [ __ ] susie right exactly the point is is that if you know the pains then in your marketing my offer is going to have components right so i might cover some of those aspects that i know are nuanced pains and solve problems that no one else is solving because i'm talking about something else was talking about because i actually did it and i'm saying i is all of us not not me specifically tell us about your marketing plan right now and what we can learn from it because you're giving away all this stuff for free and i think there is this huge lie in our industry which is we we should keep our marketing like we hear like nifty things like we we show our know-how but give know how right and so it's like oh we demonstrate we know we're talking about but we actually help no one and hopefully they're you know agitated enough they jump on a call and you're kind of taking this very different approach and in my experience with gym launch marketing it's always been different you've actually provided a stack of value up front so much so that probably makes competitors who provide that same stuff or similar for paid in their program pretty scared so so coach us on that for a second we all do marketing whether it's organic or paid how should we be thinking about demonstrating value and giving stuff away can we hold on there because i want to add one thing to the last question that i think would be a really good thought so from the offer perspective to effect marketing i want to give an extreme example because it came to me as you were saying that if you said i will get you this outcome for free guaranteed or pay you twice as much as you paid me how difficult do you think it will be to acquire customers not hard it wouldn't be hard right at all and so what ended up happening would be the bottleneck would become your operational your operations right isn't that so much better of a problem because then you have flow that you can then consistently test things on and fix the operations right as you [ __ ] up which you inevitably will in the beginning and then you eventually get it right and the other piece of that is that's an extreme example of like it's free i'll get to this crazy outcome and if you don't i'll pay you twice as much and if you're like alex that's insane what do you think i did for two years flying out to gyms for no cost to them i literally sat at their front desk for three and a half weeks in the middle of nowhere spent my own money on advertising paid for my own hotel my own flights made the calls made the sales myself did the onboarding and introduction of the nutrition plans where i would sell them supplements and i did all of that and that you know how to do anything so if you're like this guy's saying something that's totally unreasonable i did it for two years and so like i say that because i really do believe in this right and so if you the idea is how can i give away a crazy offer that no one would say no to and think how can i get no one to say no to this right and if you're afraid of it that's okay that's fear you know i'll just i'll leave it at that anyways and so if you want to right if you want if you want to [ __ ] out a little bit you can just take one step back and say okay well everyone would say yes to this maybe 90 of people say yes to this and this is something that i'm willing to do okay cool right and so the idea is how how few of these pieces can i peel back versus the other extreme which is hey buy my thing maybe you get results maybe you don't i don't care i got paid either way it's your fault which is for the most part most coaching offers think about that right and if you're like man i'm not confident enough that we're going to be able to deliver on those promises then fix the [ __ ] product right and stop selling the [ __ ] you're selling well it's like the why are you selling it to begin with if you can't have the strong offer and the strong guarantee behind it then the product sucks then you're never going to make a ton of money because the product sucks and you're never going to be able to market it and here's a mind [ __ ] for you all right so i told you that you have a compound there's six channels right and one of them compounds and is quadratic the reason the other reason sony the people end up fizzling and popping when they become gurus is because the word of mouth marketing that is working against them outpaces them they sold enough people and enough people told enough people about how much their [ __ ] sucked that no one responds to their ads anymore because you either have a positive quadratic force behind you that is just feeding you every day where you have a negative quadratic force behind you but the word of mouth is always happening it's just whether you're controlling it or not or whether you know about it or not and so anyways i just wanted to touch on that based on the last question but the question that you just asked just repeat it real quick just for everybody on here well i just want to touch on something you just said which is this solves the age old challenge uh that people are especially experiencing now which is the coaching industry is more saturated than it's ever been right and there are 101 people that are promising the same thing that have the same deliverables in their program more or less and you're now trying to figure out how to stand out of the marketplace and the answer is like be bitter like that's really what i'm hearing you say it's not like we're not trying to be better wordsmiths or write greater copy it's like actually create a product that's superior so marketing is about different businesses about better so everyone talks about blue ocean but you don't need to be blue ocean in the product the product just needs to be better and so many times the incremental improvements over time do add up and they do create outsized returns it's just hard because it's boring no one's like oh man we should improve our own boarding process that's boring that's not sexy you do a hundred of those and all of a sudden a vast majority of your clients are getting results right and then all of a sudden they're like no this program is awesome when someone hears about it they tell their friends and then that friend might not immediately sign up but they might go by your book they might go join your group right or they might actually now respond to the ad that they've seen 10 times and be like well i did hear something about dan so maybe i will check it out so in my opinion i think the word of mouth actually becomes the first tip of the dynamo domino and the paid ads actually kind of function as as retargeting even if it's cold you just don't know that they have now been they've now touched your brand in some way and once they've had one word of mouth or two word of mouth now they will respond to the ad that is called traffic and as far as hiros or whatever it is you know whatever you're tracking is right in your in that thing it looks like it's new but it's not they already got touched in other ways and then walked in so i think much more in terms of differentiating yourself in the marketplaces you have to have a parallel marketing campaign that is going on on your behalf behind the scenes and um one of the questions that i think is very haunting but i think is very powerful is right now if i if i were the god of of marketing right thor god of marketing right and i said right now you can get no more customers from any any any acquisition methods you're using all right so you can't do you can't do affiliates you can't do paid ads you can't do reach outs you can't do any of that stuff all right the only way you can get new customers is if your existing customers bring you more customers how different would the experience you have with your customers look if that was the only way you could get new clients and if you can think right now how different it would look how much interaction you would have how much support would be there how you'd make sure everyone was successful then change that now and then they will come so going back to that question of giving away too much and this temptation to be really shallow in our marketing and it kind of flicks our expert muscles but not enough to actually help people you take a very different approach coach us on that um it's kind of like the the age old like what happens if i train an employee and then they leave it's like what happens if you never train them and they stay right and so it just faces the inevitability that you're like you got to train all your employees right or you got to invest in all your employees and i think you can use the same kind of thought process which is well 99 of people what if i give them all this value and they don't buy right well it's like what if you give them no value right and all they consume is your fluff and so it's been my opinion that 99 of the marketplace will never buy from it and so there's the there's the human side of it and then there's the money side so first just touching on the human side of it i sleep better at night knowing or at least believing that more people benefit from the stuff that we give out right i feel like that's a net positive just in general right so that and i think most entrepreneurs i talk to they say hey i want to make an impact i want to help people to the degree which that's true i don't know but whatever it sounds nice and so i think that if that is true for you then why not give away more um in a recent goal for myself as a total tangent but i'm going to go for it anyways is to is to die the man who gave them most um and that's i maybe i'll never achieve that but it's a nice goal for me um on the money side a couple things one is if you give enough you don't have to ask so you've heard of the jab jab jab right hook thing right let me tell you real [ __ ] secret you can just jab jab jab and never ride hook and people will just lay down and say you win the amount of dms i get a day that offer me between 50 and 250 000 for a day or an hour per day is staggering that's not an offer i have that's nothing and i don't sell it right but because there's been enough value that they believe has been i've there's a threshold that has been met or surpassed and they're like and most people have reciprocity most people are normal people and if they receive something they want to give something back and the idea behind marketing in my opinion is to trigger that in people is how can it give them so much that they would feel unreasonable or guilty to not pay me and i can't tell you the amount of times where i had somebody who read the gym launch book which is the first book i wrote a few years ago for the gym industry and uh they read the book and they're like dude your book tripled my business i i'm here a year later and um i just i had to you know i had to see what he's like you could do nothing and i would just be happy to sign up right and i think that in terms of the fear of giving stuff away it's pure scarcity and i'll define that because i think scarcity and abundance are thrown around a lot in the marketing community but no one actually like defines it kind of like value and so my definition of abundance is or being abundant is being someone who cannot be controlled because they need nothing and so if i don't need anything you cannot incentivize me and therefore i cannot be controlled which means i'm purely autonomous which means i don't need to give you anything to get something back because i don't need what you have and so i think what ends up happening when you do this very valued value-centric or value first approach is that you inevitably end up playing the long game and as a further tangent which hopefully then will let me expound upon i think that one of the most undertalked about concepts in the marketplace is goodwill and i think that goodwill compounds and i think it compounds fast food than revenue you can get outsized returns on providing value into a pool of a marketplace and that goodwill will multiply far faster than your asking will and if you can hold off long enough you won't ever need to ask you can just keep giving and so the idea of like when am i giving enough is chilly like give everything you have and the reality is that most of the stuff you have and i'm saying this not as a pejorative statement i'm saying this is in general most of stuff you have might not be that good and what it will do is it will force you to get better and if there's ever been like a single consolidated statement of like what alex believes about making money it's people just need to be much better than they are and most people suck at most things they do especially the things they think they're good at a lot of you probably would think your competitors are not that good your competitors don't think you're that good and so the question is how can we how can we make it so it's so unreasonable for them to like i used to and this used to be in part of my marketing i was like people might say that they don't like our methods i was like but no one's ever said jim doesn't make people money what are the biggest mistakes or i would say what is your advice to us to get to for everyone under a million in revenue to get to a million in revenue from like high-level business principles and then and this is the this is the key part that you were 100 qualified to answer on get to a million and take home pretty much until about three million per year in revenue um the advice pretty much holds which is one product one avatar on one channel and here's what's hilarious i'll bet you there's a bunch of people on here who have more than one thing going on and they're probably also selling more than one product they're also selling to more than one avatar let's think about this if you could only pick one avatar to sell to and one product to sell them in only one way or one channel to access them how much easier would your life pay how much more quantifiable and simple would that feel does anyone here even thinking about quitting all the side hustles that they're talking about or the half project that they think might become something i'm doing these two kind of businesses i'll see which one works out the answer is either of them will work out but neither of them with an n neither of them will work if you try to do both and so the issue is not even time the issue is detention you only have so much attention you only have so much juju right there's only so much heat uh and you have too many pans on the heat's not concentrated enough and so you got to put the juju on one problem because believe it or not the guy who's crushing you that's what he's doing and so you're trying to compete with two hands tied behind your back against people who are putting every single ounce of their life into just solving one problem if you do that life gets a lot easier and for me i would rather make business easier than harder and so that's kind of the idea is how can we stack the chips in our favor so that it would be unreasonable for us not to be successful if you only had to solve one problem for one avatar and you only had one way that you were going to approach them even if you didn't know how that channel worked even if you weren't perfect to solve in the problem since you only have to do those things you will with enough iteration to solve it and then the marketplace will reward you what are you saying people need to keep in mind when it gets to that one million in take home which almost you know no one gets to even the people that are in freaking eight figure land spending 700k a month on ads what's what's important to keep in mind there are what mistakes do people make when not not making a profitable business the lifetime gross profit per customer has to be higher so to go from three to ten you don't really need to change anything besides making sure the customers are more valuable you can do that by improving the product and just like if you have a recurring based business it's reducing turn most the time and optimizing pricing or adding a single you know high value additional you know service level right um and again you might think well that's adding operational complexity the answer is yes it is adding operational complexity but people who make 10 million are more skilled than people who make three million dollars and so that is a skill that you need to acquire you know in the path of getting there are there exceptions absolutely but these are kind of obviously broad-based for if i'm talking specifically to high-ticket coaches who are in a niche usually going from three to ten million is going to include increasing the lifetime value of the customer in some way either by introducing a back-end or keeping them longer the other piece of it from what you were saying earlier is that if you have to spend that much money on marketing it means the product's not that good last question i have for you alex because it's a big question why did you write the book and what's your new mission if it's not helping gyms be super profitable yeah so right now we're just helping businesses that are doing about five million and up um get to you know 30 50 million dollars a year because now we've done it four times um in the businesses that we own 100 of and so now we're just doing it and participating um in it so we just invest in those companies we basically function as a makeshift exec team so we've got a cfo cool there's me vp sales and so all of those things basically functioning because usually at that five million dollar level the issues you don't have enough talent not enough experience and so we can just go inject those in and then de-bottled like all the things that we know because we've done that so many times and so uh in terms of the marketing perspective i don't really have any desire to sell masterminds coaches or courses because i don't need to you know i mean the businesses that we own already pump out tons of cash flow and i just don't need to do it nor do i really have the desire and so the idea was i'll just make basically my goal is to make the best internet marketing business that exists to make everything and then if they're you know if someone wants to get to that next level they've already proven themselves uh able to execute on the concepts that we gave away for free then it means that they're not gonna need handle holding for me um which means that i've proven that the information works because they executed on it and they've proven to me that they can do it um and so it's kind of it works off of shared uh press right off the bat and so that's that's kind of the goal with the business and the real real is that i think that when i die nothing's going to happen and that there's really no such thing as legacy and if i have 100 generations people forget who i am it makes me feel good i love that i'm like giving you someone up in one minute guys um please share some love to alex uh alex thank you so much he is the man that has nothing to sell you plenty of people broken the world he doesn't want you to be one of them so make sure you check him out and dive deeper into stuff alex appreciate your friendship appreciate your input this has been amazing have a great day dude appreciate you guys thank you for having me