WEBVTT

00:00:00.000 --> 00:00:05.040
Have you ever seen a business owner in your space cross eight or even nine figures and you think to yourself,

00:00:05.600 --> 00:00:19.095
that guy's a complete idiot. Like, I know that guy. How the hell did that guy pull that off? Well, the truth actually might surprise you a little bit. So for context, after scaling my own company past $30,000,000 a year, I personally consulted and doing that 3,000

00:00:19.095 --> 00:00:25.415
plus business owners now. And in doing so, I've been able to see a lot of patterns. And one of those patterns that's definitive

00:00:25.495 --> 00:00:33.870
is that I can tell you that 80% of the success or failure in your business comes down to one single thing, and that thing is your offer. Not your funnel, not your team, not your work ethic. Offer.

00:00:34.110 --> 00:00:35.870
And I've watched over the years

00:00:36.270 --> 00:00:37.790
mediocre operators

00:00:38.030 --> 00:00:48.975
rocket ship to ten to fifty million a year on the back of a banger offer. I've also watched world class operators, guys who pretty much execute really well, stay stuck at four to six million years simply just because their offer sucks.

00:00:49.215 --> 00:01:06.760
And the thing is is the offer is the most important lever that you can pull in your business. So your offer determines your pricing power, determines your cost curve, which really determines how scalable your margins are as you grow. It determines if your ads are gonna convert and how well they convert. It determines how well your sales team's actually gonna close at the end of the day. And ultimately, all those things culminate

00:01:06.760 --> 00:01:11.160
to determine your LTV to CAC, which is really the single number that decides how much runway

00:01:11.495 --> 00:01:49.715
you have to scale. So in this video, I'm gonna splice to a dense training I did for some private clients talking about everything I know about how to engineer offers that go absolutely nuclear and just print money. So we talk about how to package your offers correctly, how to engineer something called market power into the offer itself. We talk about how to design offers with favorable cost curves that you scale. If you don't know what that is, we'll cover it in the training. And really how to position your offer based on market sophistication so it lands with the exact buyer that you want. And more importantly, a buyer that actually has money and purchasing power. So this is really the perfect training if you've read a $100,000,000 offers by Hormozi, but you want something a little bit more practical for our industry and advanced.

00:01:50.150 --> 00:02:06.005
And so I'll splice over that training now, but hope you enjoy. Let's get into it. What is an offer? An offer is really just what you're selling, how you communicate what you're selling, which is your positioning, and then the terms of the deal. So with that being said, what's a good offer? Well, a good offer has two components. Number one, it's meaningfully differentiated.

00:02:06.085 --> 00:02:25.870
Okay? So we'll talk about what that means in a second. But when it's meaningfully differentiated, it does two things. It allows cold acquisition to work. Like, again, what we talked about is essentially, it gives people who have no idea who you are, a reason to reach out when they see a piece of marketing. Okay? The other thing being differentiated does is it maintains your pricing power and allows you to price more than your competitors.

00:02:25.950 --> 00:02:47.980
Okay? The second thing a good offer is going do is, again, it makes you more scalable. Okay? And it does that by adjusting your cost curve compared to other businesses in your industry, which if that doesn't make sense, stay tuned and I'll explain how that works. So again, this is a big deal. 80% of your success or lack thereof is really downstream from your offer. Like, I'm not even kidding. I've seen average entrepreneurs where I don't even enter that hit 50 or $100,000,000

00:02:47.980 --> 00:03:10.145
a year because their offer just rips. And then I've seen other people who they're great entrepreneurs. They might get to 250 to 500 a month, but they get stuck there because they have a bad offer. And these entrepreneurs can be literally at the similar same levels. But the difference is in terms of the massive gap in revenue is how good their offer is, which is why there's a saying about offers, which is it's how idiots get rich because there's so much leverage

00:03:10.225 --> 00:03:16.480
in having the right offer. So let's get into why having the right offer is so important. This is gonna be something I just want to touch on quickly,

00:03:16.880 --> 00:03:22.800
which is market commoditization over time. So this looks like a supply and demand curve. It kind of is, but it's really that's not what this represents.

00:03:22.960 --> 00:03:23.920
And essentially,

00:03:24.080 --> 00:03:33.595
what this shows is as new markets emerge and businesses start to make more money, it attracts more competition. So you can see here, this is a new market. The profit margins are crazy. But as that happens,

00:03:33.915 --> 00:03:40.530
competition and supply goes up. Right? As that as more competition enters, businesses become more commoditized.

00:03:40.530 --> 00:03:45.810
And that's because the customers start to see the businesses as interchangeable or undifferentiated.

00:03:45.810 --> 00:04:01.385
So they start to compare them all on price. And now this happens, and when they start to compare them all on price, of course, it pushes everybody's pricing and everybody's margins down. Now this happens in almost every market. All right? And the speed in which it happens in every market depends on the barrier to entry.

00:04:01.545 --> 00:04:11.990
So for a lot of my clients who are in the online service economy, whether it's a coach consultant agency, etcetera, Even if you are in the in person service economy or med spa, an HVAC business, etcetera.

00:04:12.550 --> 00:04:28.495
The barrier to entry is very, very, very low. Okay? If you're one of my software clients, the barrier to entry is a little bit higher. But now especially with AI and the speed of coding, that barrier to entry is coming down as well. So more or less in most markets, unless you're in something crazy like an airline market, but we don't have any clients like that here,

00:04:29.375 --> 00:04:35.055
we're all living in this place. You just realize it's not your market's commoditized, and somebody else's market's not commoditized.

00:04:35.380 --> 00:04:43.140
Everybody everybody's market has this force going on. We're all living in this place. Okay? So a good offer combats this. Alright?

00:04:43.460 --> 00:04:44.500
And essentially,

00:04:45.060 --> 00:04:48.660
the fact that we're all in a commoditized market, it has two very important

00:04:49.375 --> 00:04:50.335
implications

00:04:50.575 --> 00:05:25.985
if you don't have a good offer. Okay? So if you don't have a good offer, what happens is is you succumb to commoditized pricing, which we already covered. Basically, that pushes all your margins down. It makes it harder to ROI on cold ads. And on top of that, it makes it harder to reinvest in good talent for your business so you can get leverage and remove yourself. So a lot of people, they just end up like, especially agencies, as being a glorified freelancer because they don't have the margins to reinvest in their company to scale, and they can't can't get cold acquisition to work. So they just take on business that's everybody, anybody. We'll talk about that later. The other implication is that you can't get paid acquisition to work. Okay? So because you're not differentiated,

00:05:25.985 --> 00:05:36.660
because your offer sucks, there's no incentive for somebody who has no idea who you are to see a piece of marketing and take the risk in terms of risking their time, to reach out and speak with you. Okay? So to be clear,

00:05:36.980 --> 00:05:52.885
this training is really about overcoming this trend. That's why I started the training with this. Okay? And so this training is really about overcoming this. But one important caveat I do want to give is there is people out there who overcome a commoditized offer that's undifferentiated

00:05:53.045 --> 00:05:59.525
just by having a high degree of trust. Right? So if you get a lot of word-of-mouth and referrals from doing good work, that obviously overcomes

00:06:00.400 --> 00:06:31.175
a commoditized market, right, and an undifferentiated offer. So your offer could suck, but if somebody refers you and says you're the best person ever, like that person's probably going to buy. And they might buy at a higher price than they would otherwise. Okay? The other the other key distinction of this, which is very similar, is if you have a huge content presence, okay, you're gonna be able to charge higher prices even with a bad offer because of that. Alright? Because, again, the commonality with both word-of-mouth referrals and content is you have a high degree of trust. Okay? So a lot of people think their offer is good because they either have a lot of referrals or

00:06:31.690 --> 00:06:50.585
they have a lot of revenue that's coming in from content. But what they don't realize is, is it's not the offer that's good. It's the trust that's overcoming a bad offer. And the thing is, is even if you have killer word-of-mouth referrals and you're famous on social media or whatever, you would do so much better if you also got the offer right too.

00:06:50.905 --> 00:07:33.790
Okay? So hopefully that makes sense. Now there's three parts of a good offer. There's packaging, economics, and scalability. I've already touched on that. We're going to dive into each of them with more detail now. So packaging is not what you're doing. It's how you're communicating what you're doing in a way that's different unique, different superior than everybody else. Okay? So when we do that, we become meaningfully differentiated. Some people in marketing books call this category creation because you're kinda creating a little mini category. But regardless, what that does is, again, two things. It gives you people it gives people a reason who have no idea who you are to actually reach out and take a chance to actually speak with you because they're seeing you as a little bit different than everybody else. So you're giving them a reason. And then it also gives you market power, which really means you can charge higher prices without sacrificing conversions. So again, if you have high market power, as your prices increase,

00:07:33.950 --> 00:08:08.520
you don't have as much drop in conversions. If you have lower market power, you have a higher drop in conversions as your price increases because, again, you're more of a commodity. So higher market power, less commodity, lower market power, more commodity. Okay? Now moving on to economics. If your packaging is good, it allows you to become meaningfully differentiated. And then that allows you to charge higher prices, giving you an economic advantage over your competitors. Okay? So it's important to understand there's essentially two pricing strategies in business. There's lowest cost, and then there's premium. Okay? Now there could only be one lowest cost provider in a market. Alright? There's Walmart, Amazon, etcetera, great examples.

00:08:08.600 --> 00:08:10.920
But there can be several premium providers

00:08:11.080 --> 00:08:18.975
because they can essentially, if they have good packaging and a good offer, they can kind of carve out little mini markets, which is why it's also called category creation.

00:08:19.295 --> 00:08:22.895
And they can carve out little mini markets by differentiating themselves.

00:08:22.895 --> 00:08:29.775
Okay? So this is basically why people tell you to, like, pick a niche. Alright? Now this is extremely important because the entire economics

00:08:30.230 --> 00:08:31.350
of your business

00:08:31.910 --> 00:08:46.195
is created from your initial pricing strategy. So just to give you an example, like if you have higher prices than your competitors, you can pay more to acquire a customer, which makes ads or whatever you're doing way easier. You can scale your ads further so you're more scalable because, again, you have better economics.

00:08:46.195 --> 00:08:55.395
Another thing people don't think about is you can hire way better people because you have more profitability and more margin. And then that's actually a flywheel. Because if you hire better people, let's say you hire better salespeople,

00:08:55.850 --> 00:09:06.010
you'll convert even better, which makes you even more profitable. Or if you hire better executives or client success or whatever, I mean, again, it makes the quality of your business better, which probably increases LTV.

00:09:06.090 --> 00:09:17.645
And also on the front end makes it easier to make more profitable on ads or whatever acquisition that you're doing, and you have more profit to reinvest. So I I know this kind of sounds like common sense, but the reason I'm bringing it up is,

00:09:17.965 --> 00:09:19.405
you know, this might make sense,

00:09:19.805 --> 00:09:23.405
but 99% of people aren't even doing this. Alright? So to give you an example,

00:09:24.250 --> 00:09:40.785
I've worked with dozens and dozens and dozens of clients of mine doing sales recruiting for them that are essentially the top dog in their niche, whether that's functional medicine or online personal training or a certain category of SaaS or whatever it is. Okay?

00:09:41.265 --> 00:09:43.505
And these people are doing 50,000,100

00:09:43.505 --> 00:09:46.545
million dollars a year. I mean, I've worked with billion dollar level clients.

00:09:47.025 --> 00:10:03.620
Every single kind of top dog in their category is the most expensive in their niche. Okay? Period. And that's because when you are the most expensive, it gives you such a downstream advantage of everybody else. Alright? But even despite this, this might sound like common sense, nobody really pursues

00:10:03.620 --> 00:10:17.595
the tactics and the strategies needed to become the highest price so that they have this advantage on everybody else. Right? Like, lot of people say this is why people say that really all business strategy is just pricing strategy. Okay? Unless, well, really still, if you're the

00:10:17.610 --> 00:10:26.490
lowest person in the market, it's still pricing strategy. So all business strategy in a way is pricing strategy is a cool way to think about it. Now the third thing of a good offer is scalability.

00:10:26.650 --> 00:10:35.015
Okay? So you want to set up your offer in a way that it's going to give you a good cost structure. So it's important to understand there's four types of cost structures. There's basically

00:10:35.735 --> 00:10:38.375
low fixed and high variable,

00:10:38.535 --> 00:10:39.895
which is coaches,

00:10:39.975 --> 00:10:44.775
any online service economy thing, coaches, agencies, online services, done for you services,

00:10:45.500 --> 00:10:52.540
even in person, med spa, etcetera, those are low fixed and high variable. So they're easy to start.

00:10:52.940 --> 00:11:30.925
But as we take on more and more clients, because we're ultimately scaling with labor, the incremental cost of each new client becomes more and more and more expensive, because we've to hire a bunch of more people. Now there's also a different one to think about, is there's high fixed cost, variable, which is like software, which it takes a high amount of development cost to build out. But then each incremental unit or customer that you bring on is basically almost like no cost whatsoever because the product is so scalable. So it's a huge opportunity vehicle. Then there's low fixed, low variable, which is like a digital course. Now, this is easy to start and easy to scale. But the thing about this is, is because it's easy to start and it's so easy to easy to scale,

00:11:31.405 --> 00:11:45.830
these are like temporary arbitrage windows that basically get commoditized immediately. So a great example is, again, digital courses, you can barely give a course away on YouTube, all right, let alone try to sell it through ads. It's not going to happen. So these go away very, very quickly. It's just not a sustainable

00:11:45.910 --> 00:12:31.045
way to build a business. And then there's high fix and high variable, which is like a restaurant. And this is obviously why restaurants have such a high failure rate is because the economics behind it are just so bad. All right. So I'm not going go into each of these in detail because most people watching this are a service based business, whether that's online or in person, which means low fixed, high variable. Okay. So we want to create an offer strategy that essentially, I mean, we're already good in terms of low fixed. But we want to create an offer strategy to where as we add more and more customers in the future, it minimizes our incremental costs at scale compared to our competitors. And we're going talk about ways to do this. Now, if you're a SaaS business watching this, you're still going to want to apply all the same concepts. Because even though you have that good incremental cost per scale, it's really going to help you on the marketing and sales side of things. Okay? So in summary,

00:12:31.365 --> 00:12:35.740
you want good packaging, economics, and scalability. If you have packaging and scalability,

00:12:35.820 --> 00:12:37.180
but you don't have the economics,

00:12:37.260 --> 00:12:41.900
you're gonna have weak margins and inability to hire. Okay? If you have packaging and economics,

00:12:42.140 --> 00:13:11.340
but you don't have the scalability, you're gonna have constant fulfillment bottlenecks. If you have economics and scalability without the packaging, you're not going to able get cold acquisition to work. If you have all three, you have a great offer. Okay. Now the most important piece of this is the packaging because the packaging dictates how you're positioning and communicating what you sell, which will help you charge higher prices and also how you position your offer essentially, and how you position the promises that you make dictate what you have to fulfill on. So packaging is kind of the one that like downstream

00:13:11.500 --> 00:13:19.755
sort of hits everything. So if we get the packaging, it's like if we get the offer right, our business becomes a lot easier. Then if we get the packaging right, our offer becomes a lot easier.

00:13:20.075 --> 00:13:28.635
Alright. So how do we actually do this? Now we're gonna get into, like, what do you actually do? Alright. So for the rest of this training, we're gonna cover the three s formula, risk reversals,

00:13:28.880 --> 00:13:58.105
done for you elements, even a non done done for you offers. You'll see what that means in a second. We're gonna talk about positioning and how desire works, and then messaging, which is like channeling desire. Okay? So if that doesn't make sense, we'll get to it later. So the most important framework that you're going to learn really, period, is something I call the three s formula. So we talked about a lot of things like having the right packaging, economics, and scalability. If you do the three s formula is like the big daddy that basically just gets all of that in one stroke if you just do the formula. Alright? So this is the main thing I want you to implement

00:13:58.690 --> 00:14:07.490
from this presentation because if you do that, you kinda hit all like, you're gonna, like, what's the kill all the birds with one stone or whatever the freaking phrase is. So

00:14:08.130 --> 00:14:26.765
what is the three s formula? So the three s formula is that you wanna communicate what you do in a way that solves a specific problem for a specific person, a specific way. Alright? And so the easiest way to understand this is for me to give you a bad example and a good example. So here's the classic bad example. Very, very bad.

00:14:27.660 --> 00:14:31.180
Tons of clients like this. Is the everything that everybody

00:14:31.420 --> 00:14:42.380
I do everything that everybody, I take on every client that exists, full service marketing agency. Like I'm a one stop shop. I do everything. Okay? Now, generally, this is a disaster. The only times it does work

00:14:42.835 --> 00:14:47.075
as a generalist service company is if they're operating in like Fortune

00:14:47.155 --> 00:14:48.355
1,500,

00:14:48.355 --> 00:14:49.555
Fortune 100 type

00:14:50.195 --> 00:15:01.910
echelons. Okay? But especially in the small business space, you're going to be wrecked if you do this. Okay? And so by the way, if you're also going to try to move super upmarket like that, especially like Fortune one thousand,

00:15:02.390 --> 00:15:06.630
these people are essentially getting their clients mainly through word-of-mouth,

00:15:06.630 --> 00:15:16.345
brand, networking. Like, think about Mackenzie Bain, etcetera. So a lot of it is more of a network play in who you know in most cases. So it's very hard, if not near impossible,

00:15:16.585 --> 00:15:19.625
to break in to a market as a generalist,

00:15:19.785 --> 00:15:21.465
even if you want to work in enterprise.

00:15:21.625 --> 00:15:26.590
Okay? So we'll talk about actually in a little bit. If you do want those bigger customers,

00:15:26.750 --> 00:15:36.510
how I'd recommend you actually do that if you're not somebody who just happens to have all of these amazing connections. Which if you're watching this training, you're probably not like super networked

00:15:37.150 --> 00:15:40.995
with like the ultra elite or something like that to where you know

00:15:41.475 --> 00:15:45.475
all these people, like huge corporations and all of that stuff, etcetera. Now,

00:15:45.955 --> 00:16:01.730
Okay. So let's look at the full service marketing agency, everything to everybody type of person. Let's look at their packaging. All right? So they do everything to everybody. So there's no specific person or problem they're solving for that person, and there's no unique methodology that makes them different. Therefore,

00:16:01.810 --> 00:16:19.540
they can't make quote acquisition work, which means they're stuck with referrals. Like, how do you if you're if you're truly everything to everybody, you're nobody to anybody. So how do you actually create a marketing campaign that makes people want to reach out to you over anybody else? You can't. Like, this is the definition of a commodity. Now, let's look at the economics. Because there's no specialization,

00:16:19.620 --> 00:16:25.700
there's no premium pricing. Because if you're just like everybody else and you could do anything, then you're just a commodity. Alright?

00:16:26.100 --> 00:16:26.660
So

00:16:27.860 --> 00:16:32.995
the other thing that also really kills is the lack of both specialization

00:16:32.995 --> 00:16:41.955
and premium pricing is also a signal of lower quality service, which means you get worse leads. So I know this is a little bit weird, but to give you an example,

00:16:42.275 --> 00:16:47.180
if I get pitched from somebody and they are like the most expensive firm

00:16:47.500 --> 00:16:50.780
that I've talked to, it's actually a signal to me

00:16:51.260 --> 00:16:59.420
that they do really good, really good work. Because I'm like, hey, otherwise, how are they even charging these high of prices? So obviously, you can't just charge infinity.

00:16:59.865 --> 00:17:04.425
But in general, premium pricing in a weird way is a great signal

00:17:04.825 --> 00:17:06.105
of work quality,

00:17:06.585 --> 00:17:17.300
of business quality. Okay? So moving on. No premium pricing also equals smaller margins, smaller profits. Smaller margins equals a lower ceiling to scale. So you hit diminishing marginal returns faster.

00:17:17.460 --> 00:17:40.670
Also, profit profits mean less money to reinvest in an a player team. That means your competition's gonna have better teams. You're gonna be stuck in fulfillment because you can't get yourself out of fulfillment. And so what a lot of people happen here is this is like the typical pseudo freelancer agency business doing like 20 to $100 a month. They just can't get past that, and they're working eighty hours a week. Okay. It happens in a ton and ton of businesses. It's because they don't do what I'm trying to talk about here. Then in terms of scalability,

00:17:40.670 --> 00:17:42.350
when you do everything to everybody,

00:17:42.750 --> 00:17:48.910
you have varied client journeys. So like different clients are coming on solving different problems, they're different industries, etcetera. When there's different

00:17:49.470 --> 00:17:50.510
client journeys,

00:17:50.590 --> 00:17:52.030
there's no standardization

00:17:52.670 --> 00:18:02.815
in the fulfillment process. So what that means is because you can't standardize and streamline the fulfillment process, you have higher labor costs and way more outsourcing a lot of times and way more contractors.

00:18:03.055 --> 00:18:12.950
So that means worse client results. And it's harder, again, to remove yourself from fulfillment because everything is so varied and it's all over the place. And then ultimately, you're stuck again working eight hour weeks.

00:18:13.670 --> 00:18:18.070
It also creates a very, very hard system to remove yourself from sales

00:18:18.470 --> 00:18:28.795
and ultimately put in a sales team. Because you've got to think about it. You have different prospects coming in from different referral sources or different places, all with different problems in different industries,

00:18:28.875 --> 00:18:35.435
which means in order to sell those people who need different things, different problems, different industries, etcetera, you need extreme

00:18:35.595 --> 00:18:37.435
levels of domain expertise,

00:18:37.755 --> 00:18:40.155
which is very hard to recruit and train salespeople

00:18:40.235 --> 00:18:47.400
for. Right? Because they're not going to be if, I mean, if they were extreme domain level expertise type salespeople, they just do this business themselves.

00:18:47.560 --> 00:19:01.395
Okay? And then they probably wouldn't do what you're doing. So, again, you get nailed on all three of these things. Hey. If the way you sell your product or service is through phone sales, you need to stop using booking systems like OneSub, Calendly, iClose, and other booking systems that aren't designed specifically

00:19:01.555 --> 00:19:10.835
for a phone sales approach or a phone sales team. So we at SalesKick just launched a new calendar and booking system that'll decrease your cost per booked call because it's conversion rate optimized

00:19:11.210 --> 00:19:36.365
specifically for call funnels, whereas most other calendar systems are meant for corporate all purpose booking, and it'll increase your show rates. So we've had clients see 30 to a 100% increases in their show rate because our calendar system is specifically designed for call funnels and other funnels that are high volume sales call booking funnels. And the software does so much more. It's really the only product designed specifically for sales teams with inbound booking systems. So if you're interested, go to saleskick.com.

00:19:36.365 --> 00:19:43.030
Check it out. Now back to the video. Now let's turn this into an actual good offer. So let's say you're an AI

00:19:43.110 --> 00:19:47.830
enabled CRO agency for e commerce businesses. All right? So you're packaging.

00:19:47.990 --> 00:19:52.870
The specific problem you solve is low conversion on checkout pages. Easy. Person,

00:19:53.395 --> 00:20:03.635
1,000,000 plus DTC e commerce businesses. Maybe you do 5,000,000 plus, I don't know. Specific way is you're using Carpathi Auto Research plus large language models to test thousands of different page iterations

00:20:03.635 --> 00:20:23.870
in a research container, then split testing hundreds of the most effective versions live through self learning AI, and then whittling that down to, let's say, the top 10 tests, and then deploying those in an actual split testing framework. Okay? I had not heard of a business doing this, but this would be a banger offer. Somebody just do it. Okay? It would work really well, especially with this auto research. Oh, crush.

00:20:25.485 --> 00:20:27.405
So what does this actually do?

00:20:27.805 --> 00:20:31.485
So this is very clearly meaningfully differentiated.

00:20:31.725 --> 00:20:48.420
So you see how because it's so different, if I see an ad that communicates this the right way, you see how it gives a reason for somebody who has no idea who I am to take the risk and reach out and talk to me because they're like, oh, this is different. That sounds interesting. Okay? It also helps answer the question,

00:20:48.820 --> 00:21:03.115
you know, I've kind of tried that before. Why is this different? Which is not only going to help more people reach out, but it also makes the sales process way easier. Okay? And so this brings me to something we're going talk about a little bit later. But your way, like this part right here, the specific way,

00:21:03.770 --> 00:21:14.650
what that needs to be is the simultaneous explanation of why everything they chart in the past has failed and why this is going be different. Okay? Again, we'll talk about that later. Now let's look at the economics of this new business. So economics wise,

00:21:14.810 --> 00:21:15.210
because

00:21:15.705 --> 00:21:31.340
there's higher specialization, we can charge more. Because we can charge more, we have better margins. Because we have better margins, we can hire a better team, and remove ourselves from fulfillment, all that good stuff, and price higher than our competitors. We can also spend more to acquire a customer, blah, blah, blah, blah, blah. Right? You get it. Better pricing strategy is all business strategy.

00:21:31.580 --> 00:21:36.940
Okay? So it helps us in a lot of different ways. So we have more leverage. You can remove yourself.

00:21:37.100 --> 00:21:59.795
Uh, you have better client results because your team is better. You have less churn, more upsells. It just becomes this flywheel of a better business. Again, that's why out of all my clients who are like the top category kings in their respective verticals, they're all just the highest priced. Okay? And that's not just because they, again, it's because they did this stuff right. It's not just because they decided, oh, I'm just going be the highest priced. Right? Like you have to do stuff to earn the ability to price premium. Now let's look at the scalability.

00:22:00.230 --> 00:22:05.590
All clients have this so every single client coming in, they have the same type of business

00:22:05.910 --> 00:22:12.790
with the same type of problem coming from the same place, like your cold acquisition system. They're getting pitched the same solutions,

00:22:12.950 --> 00:22:22.535
and they're undergoing the same client journey and fulfillment process. So this makes sales and fulfillment extremely easy to standardize an SOP. K? Which makes hiring easier.

00:22:22.695 --> 00:22:25.015
It actually makes hiring cheaper and more efficient.

00:22:25.335 --> 00:22:49.935
And then also your conversion rates on sales and your client success will go up. So I call this the conveyor belt effect, to where you have people coming in with the same problem, meeting the same thing, coming from the same source, getting the same solution, getting the same onboarding process, getting the same client journey every single time. So you can see it's like a system. Right? It's a conveyor belt. We can easily process that. And especially the opportunity now with AI is when you set up your business this way,

00:22:50.655 --> 00:22:51.535
you can become

00:22:51.935 --> 00:22:54.495
so freaking efficient through AI,

00:22:54.495 --> 00:22:55.535
through agents,

00:22:55.695 --> 00:23:11.380
all of that stuff. Okay? So I mean, it is a huge, huge opportunity, especially in service based businesses right now, to take advantage of this framework. Right? Like this framework was around before agents were a thing. Now with agents, like this is the thing. Because you could really just have a super high pri highly

00:23:11.380 --> 00:23:12.905
profitable service

00:23:13.065 --> 00:23:18.425
if you get this right. Okay? So let's look at another example. This is a classic bad coaching example.

00:23:18.665 --> 00:23:27.640
Hey, I'm an executive leadership coach. Okay? So you help C level employees lead their teams through hitting their OKRs. You work with any mid level business.

00:23:27.800 --> 00:23:29.800
You mostly maybe speak sometimes,

00:23:29.800 --> 00:23:39.240
work your network. You're kind of on LinkedIn connecting with people. You're speaking at events. There's a lot of variations of this, but they're very, very I mean, it's very, very, very difficult

00:23:40.335 --> 00:24:03.470
to really scale any of this past like a couple million bucks a year, and that's if you're lucky. Most people can't even scale a million. And again, I talked about this in the very, very beginning of the training. You might find exceptions to this, but almost always, those those are people who have a big brand. Okay? Or massive word-of-mouth referrals because of their network. So yeah, like if you if you are the one of the top executives at Google, and then you leave and start a consulting business,

00:24:03.895 --> 00:24:12.135
don't you really have to do any of this stuff because your prestige is literally so high and your network is so good that you have massive brand and massive network.

00:24:12.295 --> 00:24:26.080
But again, if you're probably watching this, you're probably not the top executive that just left from Google. Okay? So you need to do this stuff I'm talking about. So how would you turn this into a good offer? This is actually a real example of a client that I had who used to be doing bad example.

00:24:26.240 --> 00:24:27.840
We switched to good example,

00:24:28.000 --> 00:24:33.200
and now they're absolutely crushing it. Okay? So the specific person would be women in middle management.

00:24:33.915 --> 00:24:36.555
Women in middle management or women in

00:24:37.195 --> 00:24:41.915
leadership management executive positions, maybe not C level. So the problem is

00:24:43.035 --> 00:24:46.475
they want to essentially get to C level promotions

00:24:46.580 --> 00:24:53.300
in six months or less, or they'll help you build your resume up to source a different C level position

00:24:53.540 --> 00:24:57.940
in a different company. All right? Now, how do they do that? What's the specific

00:24:58.340 --> 00:25:12.875
way? I actually just made this one up. I'm not sure what theirs is, and I don't want to give it away. But it might be strategically setting up OKRs with your direct report that you that position you for a promotion when you hit them or act as an extremely attractive resume to land an upward position elsewhere.

00:25:13.035 --> 00:25:16.800
Okay? So I again, I made up the way. The rest of this is

00:25:16.960 --> 00:25:26.960
somebody who's a successful client. I just don't want give away their actual secret sauce. Okay? So that's a coaching example. Bad offer to good offer. Now, I promised I was going to go over this. What if

00:25:27.120 --> 00:25:29.120
you do really want to land those big

00:25:29.525 --> 00:25:34.005
50,000,000 to 1,000,000,000 companies in mid market and enterprise and a lot of that, Okay?

00:25:34.565 --> 00:25:35.285
So

00:25:35.765 --> 00:25:45.810
some people, they want to target a market that is exclusively mid market to enterprise. This is difficult because the market's small, and most of the sales are driven through network and relationships.

00:25:46.370 --> 00:25:48.050
And also the sales take forever.

00:25:48.370 --> 00:25:50.850
So the only somewhat predictable

00:25:50.850 --> 00:25:59.525
way to do this is through what's called account based marketing, which is like building a big enterprise sales team. That's very much a capital intensive,

00:25:59.845 --> 00:26:00.565
long term,

00:26:00.805 --> 00:26:02.565
six to eighteen month play,

00:26:03.365 --> 00:26:05.365
and it is very difficult.

00:26:05.525 --> 00:26:15.740
Okay? Like, it's you got to hire a bunch of salespeople. You got to pay them mainly salary based positions, and then you got to wait. And then hope you're doing it right because you might not be doing it right. Okay? So

00:26:16.540 --> 00:26:19.580
I wouldn't recommend that probably for most people watching the training.

00:26:19.900 --> 00:26:33.155
One way though, I've been able to land these big top of market people, like companies doing 50, 100,000,000, 100,000,000, 500,000,000, billion dollars plus, multi billions, right, that we've worked with. One way I'm able to land those people

00:26:33.635 --> 00:26:48.500
is simply just by doing what I've already been telling you to do. Because what happens is, is that 90 of the clients that let's say I land or maybe you land if you use this strategy, they're going be in small business. They're going be small businesses. So let's say that's below $50,000,000 just for our definition.

00:26:48.900 --> 00:26:51.380
So what happens is these deals are profitable,

00:26:51.460 --> 00:27:06.315
and they can help you cash flow and scale well. But what's going happen is like 10% or 5% of the leads coming in, they actually will be those mid market to enterprise customers. So for example, in the online services industry, like I have, again, I've worked with probably 3,500 to 4,000 SMBs.

00:27:06.555 --> 00:27:10.315
But in the process of doing that, I've actually had probably 100 to 200

00:27:10.760 --> 00:27:30.045
mid market to enterprise level companies come through as well. So what happens is those small business clients, they help you liquidate the ads. You're still making great money on them and delivering a great service. And they're sort of paying for all the marketing that does help you land those enterprises anyways. And then a lot of times those enterprises through network and referrals lead to other enterprises.

00:27:30.205 --> 00:27:34.525
So still, like, you're somebody with no network, no connections, no big brand from the corporate world,

00:27:34.765 --> 00:27:40.205
if you come in and use this strategy, essentially, it's a great way to break in and eventually

00:27:40.285 --> 00:27:58.075
get there. Okay? And I'm just proof of this actually working. Like, in my space, I've worked with pretty much all of the top names in my space. Okay? Who you can't guess really get through ads, but I was able to get through using this strategy. Okay? Now to be clear, I also just want to say, if you just want to make like,

00:27:58.795 --> 00:28:04.955
you know, 8 figures, multiple 8 figures or something, and and I mean net, like net after taxes,

00:28:05.835 --> 00:28:15.560
you don't really have to do mid market enterprise. Right? It's like way more competitive. It's way more tough. If you just unless like your true goal is like you want to scale a $500,000,000

00:28:15.560 --> 00:28:17.720
firm, I don't even think it's worth it.

00:28:18.120 --> 00:28:18.680
Okay?

00:28:19.160 --> 00:28:31.875
Because you can make tons and tons and tons of money just by doing small business, and it's a lot easier. Okay? Now, let's talk about developing the way. Alright? So remember, specific problem, specific person, specific way.

00:28:32.275 --> 00:28:34.035
So this is where most people struggle.

00:28:34.515 --> 00:28:37.315
And the way is really your unique mechanism.

00:28:37.670 --> 00:28:42.070
Okay? So I'll I'll refer you some other trainings. There's advanced market research,

00:28:42.150 --> 00:28:43.270
copy platform.

00:28:43.270 --> 00:28:59.515
There's Todd Brown's unique mechanism training. These are all in the portal. These are phenomenal trainings. Okay? So if you're serious, which you should be, about really mastering this, I would go through those after I finish this, but I'm gonna touch on it briefly here. Okay? So the first thing to understand in order for us to create good mechanisms

00:28:59.675 --> 00:29:22.335
is something called market sophistication. This is popularized by Eugene Schwartz. Alright? So that's a great book, and Breakthrough Advertising, that's another book you should read if you haven't read it. But I'll just kind of walk through this briefly. Alright? So there's five stages of market sophistication. There's first to market. So when you're first to market, you can just use simple direct offer copy, like automate your company with AI or lose 20 in sixty days. Then there's second

00:29:22.815 --> 00:29:30.095
to market, which is basically taking existing claims and expanding on them. So automate your company with AI and

00:29:30.975 --> 00:29:32.735
save. This supposed to be say save.

00:29:33.760 --> 00:29:38.160
50 ks in operations cost guaranteed. Right? So you see how it's

00:29:38.160 --> 00:29:41.840
the same claim, it's just expanded and inflated.

00:29:42.000 --> 00:30:06.460
Right? Lose £20 in forty five days guaranteed or you don't pay. Expanded and inflated. Then in stage three, they've heard all the claims. Okay. So this is a more mature market, and now the inflated claims have no effect. So now this is where you need to become meaningfully differentiated and do a lot of the stuff I'm talking about here. All right. So in stage one and two, you're talking about what your product does. Now you have to talk about the way it works and why it works so well, and why it's different.

00:30:06.860 --> 00:30:08.060
Okay? So again,

00:30:08.380 --> 00:30:18.295
this is the example I already gave. We'll increase your sales page conversion rate by 200% using Carpathi self learning AI auto research. Or lose 20 pounds in forty five days through the ketogenic

00:30:18.535 --> 00:30:23.975
diet. Now the ketogenic diet's not a good mechanism anymore, by the way, but this worked at a certain point in time.

00:30:24.775 --> 00:30:31.080
Stage four is enlargement of the mechanism. So this is basically like a repeat of stage two. So people start ripping

00:30:31.320 --> 00:30:38.120
off the mechanism. So then it just repeats stage two where you're enlarging the claims, and it's becoming more specific or more complex.

00:30:38.520 --> 00:30:39.080
So

00:30:39.800 --> 00:30:40.520
again,

00:30:40.840 --> 00:30:55.155
like the same thing, and you can just read here. It's just inflated, same thing here. Okay? Then stage five is a dead market where people ignore all claims and mechanism. This rarely ever happens if you're focusing on markets with permanent desire. Right? Permanent desire being money, relationships,

00:30:55.315 --> 00:31:10.210
and health. Okay? So this rarely ever happens. I don't wanna hear you say, I have a dead market. You probably don't have a dead market. Okay? It's not, you know, the mechanisms and the way to get the result might change, but your market doesn't really change. Okay? If you think about it that way. So

00:31:10.610 --> 00:31:28.005
to keep it simple, you may have to change your mechanism that becomes very played out, but, you know, you're probably not in a dead market. So to be clear, this is a good framework for understanding marketing and messaging. But really, the most effective way to actually approach this is just to assume that you're in stage three slash four.

00:31:28.245 --> 00:31:33.120
Because even if you aren't, the actions you would take in stage three slash four

00:31:33.440 --> 00:31:43.280
essentially are still the most effective. Does that make sense? So even if your market was technically stage one, if you use a stage three strategy, you're actually gonna get better results than stage one

00:31:43.765 --> 00:31:52.245
using a stage one strategy. Hopefully, that makes sense. So you just want to assume you're in stage three, stage four, and use a mechanism anyways. But this is why this is important, how these things evolve

00:31:52.245 --> 00:31:59.200
over time. So how do you actually build your mechanism? Alright. So the way I teach it is

00:31:59.360 --> 00:32:03.600
you're really good at solving x, y, z problem for ABC client. Okay?

00:32:03.920 --> 00:32:08.160
The question you need to answer for yourself is, why is what you do

00:32:08.480 --> 00:32:33.090
so much better than the competition or the other alternatives out there? Okay? So think about, again, your mechanism, I mentioned this earlier, as a simultaneous explanation of why everything they tried in the past has failed and why this is gonna be different. So it's almost like if you were on a sales call and you were explaining your mechanism, which is just a fancy word for why is what you do so much different and better than the competition and the other alternatives out there, when you were explaining that to somebody,

00:32:33.330 --> 00:32:36.770
they should be able to understand through the explanation

00:32:37.090 --> 00:32:37.890
why

00:32:37.970 --> 00:32:43.065
what they've done in the past didn't work and why this is going to be different, and actually should give them an insight.

00:32:43.225 --> 00:32:51.385
Okay? So I know that might sound like, okay, well, that sounds great. How do I actually do it? Well, here's how you do it. Okay? So you want to use this framework.

00:32:51.465 --> 00:32:53.305
And what you can do is use this framework

00:32:53.750 --> 00:32:55.030
as essentially

00:32:55.030 --> 00:33:04.390
just kind of like a way, like, write out what you do in this way or write out a couple of versions of these. And as you're doing that, it's gonna sort of flush out

00:33:04.710 --> 00:33:10.645
what your mechanism is. So here's how this framework works. So most everyone out there who's trying to achieve x y z

00:33:10.885 --> 00:33:12.725
makes a b c mistake.

00:33:12.805 --> 00:33:28.570
So, hey, everyone out there who's trying to get ads work, what they do is they really focus on media buying, and what they do is they ignore the offer. Alright? So this is kind of what the training is about. The problem with that is, and you explain the reason why this problem is a problem, which ultimately means consequence.

00:33:28.730 --> 00:33:29.770
So instead,

00:33:29.850 --> 00:33:32.650
what we do is specific methodology,

00:33:32.890 --> 00:33:36.090
which allows us to benefit and ultimately

00:33:35.705 --> 00:34:03.630
benefit of that benefit. So let me see if off the cuff I can just make this up. So most people out there who are trying to get their ads to work for their business and really develop a consistent acquisition system for their business, what they do is they focus all on the media buying strategy and what ad they're going to run and what's the latest like Facebook technique. But what they're really missing out is their offer is not good and their offer doesn't work. And they're not actually optimizing the offer. And the problem with that is, is if you have a bad offer and if it's not meaning different, meaningfully differentiated,

00:34:03.995 --> 00:34:23.960
your cold acquisition is never going to work, and you don't have the right pricing power to get a good ROI on ads. And then on top of that, your pricing is commoditized because there's nothing different about what you do. So it drives down all of essentially your cash flows and your margins, so you can't even hire a good team. So what ultimately means is your ads are never going to work because you're not meaningfully

00:34:24.120 --> 00:34:25.000
differentiated,

00:34:25.240 --> 00:34:37.705
and you might be able to scale to 50 to $70 a month of referrals, but your margins are so compressed that that you're working like eighty hours a week. You can't hire anybody new. You can't get cold ads to work because you don't have the margins and you're not meaningfully differentiated.

00:34:37.705 --> 00:34:50.000
And ultimately, you're stuck. So instead, what we do is we implement a framework called the three s formula with our clients. And what that allows them to do is meaningfully differentiate themselves through how they communicate what they do.

00:34:50.640 --> 00:34:55.840
And in doing that, they can get a cold acquisition to work. They can price higher than all their competition.

00:34:55.920 --> 00:35:00.745
The margins allow them to remove themselves from their business so much faster. And ultimately,

00:35:00.745 --> 00:35:02.905
means you have a more scalable business

00:35:03.145 --> 00:35:05.065
and from a cost perspective,

00:35:05.225 --> 00:35:19.730
and your ads will actually work. Okay? So you see how like, I just literally made that up off the spot using what we've been talking about right now. Like you can see how like this framework actually fits in perfectly with this. That's how I explain it on a sales call. And then once you start to kind of like

00:35:20.210 --> 00:35:28.725
draft this out in this way, you'll start to get some good ideas from ads as well. Alright? So this is very, very key. So I'll give you another example of what we use with RCA.

00:35:28.805 --> 00:35:36.245
Most people out there trying to make money online do it through affiliate marketing and drop shipping. The problem with that is if all you want to do is make 20 k a month and work remotely,

00:35:36.405 --> 00:35:52.505
that's tons of complexity and work and time just to make $2.40 ks a year. For example, like you might have to build a million or $2,000,000 e commerce business just to hit that amount of profit. And you got to like run ads, do tech, manage a team, and all that stuff, which ultimately means you're setting yourself up for years

00:35:52.505 --> 00:35:53.305
away

00:35:53.865 --> 00:36:02.025
of hitting that income goal and working remotely while doing all this unnecessary stuff. Okay? So instead, like, if all you wanna do is make 20 k a month working remotely, you should get into remote closing.

00:36:02.425 --> 00:36:13.540
And doing that, once you're good, you can hit 10 to 20 k a month within thirty, sixty days. It's so much easier if you just do that and land a contract with a good offer owner, which means you get to the goal a lot faster without

00:36:13.940 --> 00:36:16.500
all this additional complexity and headaches. Okay? So again,

00:36:17.145 --> 00:36:18.105
FYI,

00:36:18.265 --> 00:36:32.185
this doesn't work as well anymore. But like back in the day in like 2020, 2021, 2022, this was our messaging for RCA that like, you know, did I don't know. It was like $20,000,000 a year for several years in a row. So well over 50,000,000 probably a year total. So

00:36:32.630 --> 00:36:34.150
stuff works. Okay?

00:36:35.590 --> 00:36:38.870
So here's another example for a CRO agency.

00:36:38.870 --> 00:36:44.070
I don't know if we need to go through this. I think that you kind of get it at this point of how you would do this framework.

00:36:44.310 --> 00:36:44.870
Now

00:36:45.110 --> 00:36:47.030
a few notes on this is

00:36:47.565 --> 00:36:57.965
people trip up and think that mechanisms are just fancy names. Okay. You can have a cool name. Cool name helps. Right? If it's memorable, if it's a sticky name, like you can read the book Made to Stick.

00:36:58.605 --> 00:37:02.460
Yeah. That helps. Okay? The bigger thing is the explanation,

00:37:02.540 --> 00:37:05.580
which is what I was trying to get you to flush out above.

00:37:05.580 --> 00:37:06.220
Okay?

00:37:08.460 --> 00:37:15.500
Because the explanation is really what you give in the ad as well as a sales call. You might say the name. Right? Like the three s formula is a name. It's not that great.

00:37:16.205 --> 00:37:16.845
But

00:37:17.005 --> 00:37:21.005
the explanation matters way more. That's where the actual argument and the persuasiveness is.

00:37:21.325 --> 00:37:22.845
Okay? And then also,

00:37:23.245 --> 00:37:28.125
with both of these examples I gave you, Okay? And you can look at the CRO

00:37:28.365 --> 00:37:31.640
one as well. But you can see how in the example,

00:37:31.880 --> 00:37:33.240
it explains why

00:37:33.480 --> 00:37:48.465
what they're doing now doesn't work, or why what they tried in the past doesn't work, and how what they're going to do with us is going to be different. Okay? So it's, again, it's a simultaneous explanation of why everything they tried in the past has failed, why this is to be different. Right? So this is very, very, very key. I'm going to give you some worksheets

00:37:48.465 --> 00:37:50.465
and what to do in terms of actually

00:37:50.945 --> 00:37:54.385
developing this for your business later. All right? Now,

00:37:54.865 --> 00:37:59.185
contrary to a lot of what I've been saying so far, sometimes you actually don't need a mechanism.

00:37:59.640 --> 00:38:07.080
So don't overthink it. Alright? Because I see a lot of people just like frying their brain and getting stuck here. And while having a mechanism is good,

00:38:07.480 --> 00:38:12.360
you can get away without it and still scale pretty pretty big. So in SDA,

00:38:12.360 --> 00:38:13.480
we do have a mechanism,

00:38:14.035 --> 00:38:17.235
but it's not really prominent in our marketing.

00:38:17.635 --> 00:38:24.115
And the reason why is, is because we have massive amounts of social proof. We've worked with every big name in the industry. We focus on a good guarantee.

00:38:24.355 --> 00:38:30.070
And because our offer is done for you, it's just more attractive. Right? So when done for you companies specifically,

00:38:30.470 --> 00:38:32.390
you can get away without this.

00:38:32.630 --> 00:38:44.285
And the other thing that helps us a lot too is we don't there's not a lot of other sales recruiting companies out there who are actually good. I mean, there's a lot of people who try to copy us, but they, they start, and then they're only around for like six months, and then they're gone. So there's not like real

00:38:44.605 --> 00:38:45.485
competition

00:38:45.725 --> 00:39:00.190
in a lot of ways. So I still recommend developing a mechanism. This isn't a pass to not do it. But like if you're stuck and you're a done for you company, and what you do is highly valuable, and you can make a big promise and a guarantee and you have a lot of social proof, you can get away with it. Okay? So

00:39:02.030 --> 00:39:24.130
the three s formula, basically, what we covered so far, it's kind of like the big daddy to knock down the packaging economics and scalability. It basically does all of that in one thing. Okay? Because, again, the packaging, it kinda makes sense. Like, really what it is is the packaging. But when we get the packaging right, we can charge higher prices. And then also because we're solving a specific person for a or a specific problem for a specific person, a specific way, it streamlines

00:39:24.130 --> 00:40:00.030
into the conveyor belt our delivery, which helps our cost curve and makes each incremental customer not cost more than the last. For the most mean, it's going to cost more than the last, but it smooths out the cost curve so we have more scalability long term. So this formula kinda knocked down the main things that we wanted to do, which is why I like it so much. It's why the first thing I taught. Hey. If you're enjoying this video and you wanna work more personally with either me or my team, we can help you in two different ways. Number one, we can help you install a marketing system so you can generate more leads and ultimately scale the revenue of your business. Or b, we can help you with your sales team by placing setters or closers in your business. And if they don't perform, you don't pay. We can also help you scale your sales team, systematize your management,

00:40:00.190 --> 00:40:14.445
all of that stuff as well. So if you're interested in either of those, there's a link in the description or in the first comment. You can check it out. Now back to the video. So now what we're gonna do is dive into more stuff to just make this even better. And these are just kinda some different tactics,

00:40:14.445 --> 00:40:15.885
if you will. So,

00:40:16.125 --> 00:40:18.285
um, the first thing we're gonna talk about is positioning.

00:40:18.710 --> 00:40:21.270
And we're going to talk about something called the barbell framework.

00:40:21.430 --> 00:40:23.750
And so the key points here is

00:40:24.470 --> 00:40:27.590
there's essentially kind of two parts of the market barbell.

00:40:27.750 --> 00:40:32.390
So when you're doing your offer, you either want to be like if you're going after B2B

00:40:32.475 --> 00:40:33.595
or solopreneurs,

00:40:33.595 --> 00:40:37.195
like a solopreneur is like an insurance agent or a real estate agent or a lot of times a coach.

00:40:37.435 --> 00:40:39.195
You know, here you have richer clients.

00:40:39.515 --> 00:41:01.055
Time is a premium for the clients. You want to probably be doing done for you or partial done for you. You're not going to have as big of a TAM, and your back end and your LTV is going be super important. It's going be almost impossible to get this business to work if you don't have a good back end and LTV. So this is a good place to be. Right? Like, this is a fine way to position yourself. You could also position yourself as b to c to where you have consumer clients.

00:41:01.215 --> 00:41:14.690
They have way more time. This could be done with you. It could still be done for you, honestly. You have a huge TAM. The front end can scale more, and the back end is tougher, but it's still possible. You still do a back end here. So this works really well because you have such a big TAM.

00:41:14.850 --> 00:41:26.255
Right? So your ad costs are quite low. This year, your ad costs will be higher, but you also are charging more money, and you have a higher back end LTV. So this is good. This is good. Where you don't wanna be is this no man's land.

00:41:26.655 --> 00:41:28.015
Okay? And

00:41:28.255 --> 00:41:34.335
a great example of this essentially is like, if you're helping a 10 k a month coach get to 50 k.

00:41:34.920 --> 00:41:48.200
You know? It's like you either want to be kind of helping more experienced coaches with an actual done for you service almost, or you want to help you be helping people get into the coaching business. You don't want to be almost like with a broke market that's also smaller TAM

00:41:48.615 --> 00:42:00.375
and probably still wants done for you, even if they're not ready for done for you, etcetera. You don't want to be in this kind of no man's land. All right? So I'll summarize the key points here. You either want to sell a highly leveraged product that's like done with you to a mass market B2C,

00:42:00.790 --> 00:42:08.870
or a more done for you oriented pro product to a smaller but richer market. K? You stay out of no man's land. That's generally where you have a smaller TAM, poor clients.

00:42:09.110 --> 00:42:17.385
They're not established enough businesses for done for you. They can't pay a high enough price, and they're, like, also a little bit too established for done with you. So a few examples of no

00:42:17.865 --> 00:42:38.740
man's land is like a done with you coaching offer for real estate agents. Again, if you're Ryan Serhant, okay, he's got a huge brand. You can do it. For most people, the real estate agents don't wanna do it. Done with you coaching for ecommerce business is doing 10 k a month. Okay? They're still poor. There's not a lot of them. You just might as well help new people start ecom brands. All right? Done with you coaching for coaches doing 10 a month. Okay? Same thing. Same issues above. So

00:42:39.140 --> 00:42:44.020
in these examples, you'd be better off just helping new real estate agents get their first couple of clients.

00:42:44.665 --> 00:42:45.305
Right?

00:42:45.625 --> 00:42:46.185
You'd be

00:42:46.825 --> 00:42:47.705
or or

00:42:48.025 --> 00:42:50.985
doing a done for you marketing system for, like, super high end brokers.

00:42:51.305 --> 00:42:57.945
You might help people start ecommerce businesses, or you do a done for you agency to ecom for businesses doing over 10,000,000 a year.

00:42:58.630 --> 00:42:59.750
Or instead of

00:43:00.070 --> 00:43:03.350
done with you coaching for coaches doing 10 ks, you help coaching

00:43:03.510 --> 00:43:12.630
corporate execs package their expertise into consulting offers and start a consulting business. Or you do some sort of done for you offer for higher end coaches. So the barbell is a trade off.

00:43:13.385 --> 00:43:13.945
And

00:43:14.185 --> 00:43:22.825
essentially, you know, you're either kind of going one side or the other. Right? You just don't want to go in the beginning. I can tell you in a moment, though, there's a way to sort of combine

00:43:22.905 --> 00:43:26.265
and get the best of both worlds, which I've had a few clients do. And,

00:43:27.030 --> 00:43:31.670
know, they do like 50 to 100,000,000 a year. It's pretty wild. So that brings us to positioning part two,

00:43:31.990 --> 00:43:34.470
which is how desire actually works.

00:43:35.030 --> 00:43:35.750
So

00:43:36.390 --> 00:43:44.045
people, obviously, they buy something to go from current situation to desired situation. Right? So they buy something when there's a pain

00:43:44.205 --> 00:43:46.125
or a problem. Now

00:43:46.125 --> 00:43:47.725
there's two types of problems.

00:43:47.965 --> 00:43:49.725
There's essentially pain,

00:43:49.885 --> 00:43:53.165
which is when they're moving from below average to average.

00:43:54.125 --> 00:43:59.190
And then there's what's called an unfulfilled desire, which is when they're moving from average to excellence.

00:43:59.350 --> 00:44:09.910
Okay? So like, let's take stem cells. If I'm selling stem cells to somebody with knee pain, they're going from below average to average, from not normal to back to normal. But if I'm selling it to somebody like me for longevity,

00:44:10.245 --> 00:44:12.805
we're kind of going from average to excellence.

00:44:13.445 --> 00:44:15.045
All right? And so

00:44:16.005 --> 00:44:24.485
same thing with, let's say you're selling weight loss. If you're selling somebody who's obese, it's below average to average. If you're selling somebody who wants to get six pack abs, it's average to excellence.

00:44:25.320 --> 00:44:26.440
Quit your job

00:44:26.680 --> 00:44:35.720
versus quit your job and start an e commerce business versus scale your e commerce business. Again, one's below average to average, one's average to excellence. Okay. So what are the trade offs here?

00:44:36.040 --> 00:44:39.275
Alright. So when you go from below average to average,

00:44:39.595 --> 00:44:42.075
there's a higher urgency because

00:44:42.075 --> 00:44:50.955
of loss aversion. Right? Like people want to get back to normal, back to where they were more than anything. Nobody wants to go backwards. So there's always a much higher urgency

00:44:51.550 --> 00:44:55.070
with below average to average. There's also a much bigger TAM.

00:44:55.550 --> 00:45:05.805
You know, just how it is. Like, there's more people who have worse results than better results in any given market. Right? Uh, tell me when there's not. There's also less money, usually.

00:45:05.965 --> 00:45:09.645
Not always. We're going get to something in a second, but usually they have less money.

00:45:10.045 --> 00:45:12.045
Now average to excellence,

00:45:12.205 --> 00:45:17.885
there's lower urgency, it's a smaller TAM, and they have way more money. It's just the inverse. So it's kind of similar to the barbell framework.

00:45:18.320 --> 00:45:21.360
And most of us are to be on one side or the other,

00:45:21.760 --> 00:45:28.240
and knowing where you're at matters. Okay? But this this is a little tactic that can take your offer absolutely

00:45:28.240 --> 00:45:35.025
nuclear. And I I got this idea from watching somebody actually do it. So if you can find a segment of wealthy people

00:45:35.265 --> 00:45:38.465
who feel like they're below average trying to get to average,

00:45:38.945 --> 00:45:40.785
you can absolutely destroy.

00:45:40.945 --> 00:45:43.745
Because this gives you a golden opportunity market

00:45:43.825 --> 00:45:49.040
to where you could hit all of those. You have people with high urgency and high money.

00:45:49.200 --> 00:45:51.680
And then in some cases, you can even get a

00:45:52.720 --> 00:46:04.495
the market has a decently high TAM as well. So I'll give you an example. Like, I have a friend who targets wealthy guys who just let their bodies go, and they need to lose weight. So he's very good with his messaging and he's very good at speaking

00:46:04.495 --> 00:46:47.030
to the pain of these guys. That's the key is he's very, very, very good at that. Like, he's not saying like, hey, busy professionals. Like, he's just very good at like gut punching these guys with his messaging. And so he's targeting a mid sized TAM. It's almost like he's targeting accredited investors, like wealthy guys over 40. They have an urgent problem, and he's also agitating that problem the right way, and they have lots of money. So, you know, he's doing basically online personal training, but he's being able to sell 10 to 40 k packages and does 50 40,000,000 or, yeah, 50,000,000 a year, around there. K? So this sounds easy. It's not. Okay? The the key to this is really having outstanding messaging that shocks the wealthy person into getting their shit together. So I'll give you another example. I have a client who does high net worth divorces.

00:46:47.190 --> 00:46:50.310
Hits all of the above. The TAM is not huge here,

00:46:50.550 --> 00:46:52.390
but it's bigger. I mean,

00:46:53.190 --> 00:46:55.190
the nice thing is if you can solve a high net worth problem,

00:46:55.815 --> 00:47:10.855
it's not a business segment. It's just like a wealth segment, which is much bigger than a business segment. So the team is still pretty much mid sized. Okay? But the money and the urgency is obviously much bigger. You know, I have another client that targets c suite women who have trouble attracting

00:47:10.855 --> 00:47:11.415
men

00:47:11.710 --> 00:47:17.230
because the women feel like they're always in their masculine. That's a great example. I have another client who

00:47:18.190 --> 00:47:19.390
helps rich guys

00:47:19.630 --> 00:47:25.415
in their 40s who are post divorce, who are lost in the dating world, get back into dating. So again,

00:47:26.135 --> 00:47:28.135
the thing is, is you can't just call

00:47:28.535 --> 00:47:42.910
out this person in your ad and then be like, oh, why is it not working? You really have to understand them viscerally and be able to talk to the pains. Like because I mean, these people are very sophisticated. So the messaging really has to hit. There's not just going to be kind of like a little call

00:47:43.310 --> 00:47:55.175
out that you can do to get them on the phone. You can't say, hey, are you a high net worth person going through a divorce? I mean, you could say that, but whatever comes after that's got to be really good. All right? So that's gonna bring us to messaging.

00:47:55.415 --> 00:47:58.695
So what we're gonna talk about here is you can only

00:47:59.415 --> 00:48:00.535
channel desire.

00:48:00.535 --> 00:48:02.295
You cannot create desire.

00:48:02.455 --> 00:48:15.360
So the big fallacy is that you cannot create desire. Like, can't create desire out of thin air. Desire already exists, and what we can only the only thing we can do is channel it to create demand. And so here's why this is so important.

00:48:15.600 --> 00:48:22.095
You might have an offer you're very passionate about and you want to sell. But if you put it out there, people don't want it. Alright?

00:48:22.175 --> 00:48:37.650
And most of the above training is really how to fix all of that. But this really will get you thinking about where your market is at and how to like actually position yourself the right way. Because like you could do the three s formula, but you could basically just do it in a way to where what you come up with nobody wants.

00:48:37.970 --> 00:48:39.410
All right? So

00:48:40.050 --> 00:48:47.890
how does this actually work? Again, you cannot create desire. What you have to do is find existing desire, and then you either do two things. So once you find existing desire,

00:48:48.305 --> 00:48:51.665
you put your offer in front of that desire,

00:48:52.065 --> 00:49:05.760
or you channel the existing desire into your offer via copywriting. So like this diagram here will make a lot more sense. So like, this is like existing desire. This is like a flowing river. What we have to do is we have to put our offer

00:49:05.920 --> 00:49:08.000
right in front of it. All right?

00:49:08.320 --> 00:49:12.160
Or what we do is we, through copywriting and good messaging,

00:49:12.320 --> 00:49:17.185
we take existing desire and we channel it into what we're selling. Okay?

00:49:17.345 --> 00:49:21.505
So I'll give you some examples of existing desires. Like people always want customers.

00:49:21.665 --> 00:49:35.310
People want staff that solves their problems, like recruiting offers done for you services. Like that's what I do. People want to find a partner. They want romance. They want a good relationship. Right? They want to get in shape. Right? There's a lot permanent desires. These ones are obvious, but you get what I'm saying. So

00:49:35.710 --> 00:49:37.390
people want investment returns.

00:49:37.470 --> 00:49:42.910
People want to diversify. They want to limit their downside risk. I mean, you go into any market, you can find stuff that never changes.

00:49:43.150 --> 00:49:46.030
People want stuff that's cheap, never changes. So

00:49:46.645 --> 00:50:01.685
with some offers, again, you can put them in right in front of existing desire. So if you have a done for you marketing agency, you have a recruiting offer, a weight loss offer, dating offer, now you still want to follow the three s formula and do all that stuff. But it's going to be much easier because you're just kind of

00:50:02.320 --> 00:50:14.080
putting yourself in front of the existing desire. Okay? Now, I'm gonna give you some examples of having to a channel desire to create demand. Okay? And and this is where this is actually gonna get valuable. So let's say you're a speaker coach.

00:50:14.240 --> 00:50:14.480
Alright?

00:50:15.455 --> 00:50:19.855
Again, you might have people in your network or who know who you are through your brand

00:50:20.015 --> 00:50:21.295
or referrals

00:50:21.455 --> 00:50:24.495
who do want to speak better. But most

00:50:24.495 --> 00:50:26.495
people don't want to wake up

00:50:27.160 --> 00:50:37.480
and want like, they're like, oh my gosh, I need to work on my speaking, and I want to learn it from this stranger who said they're a speaking coach. Okay? So the market's small for one. And then the people who do,

00:50:39.000 --> 00:50:43.255
know, again, like I was already saying, the people who'd like actually do get clients for this, generally,

00:50:43.255 --> 00:51:00.960
they're getting it from speaking on stage themselves. They have a lot of organic content, or they're getting referrals. But it's very tough to get an offer like this working on cold acquisition or paid ads. So instead, what you want to do is you want to attach it to existing desire. So an example of that is you could help business owners

00:51:00.960 --> 00:51:02.320
in whatever industry

00:51:02.560 --> 00:51:09.840
source stages in their market and speak in a way that lands them clients. Okay? So you see how what I did is I bridged,

00:51:10.465 --> 00:51:11.425
essentially,

00:51:11.585 --> 00:51:13.105
people want more customers,

00:51:13.265 --> 00:51:15.185
which is an existing desire,

00:51:15.505 --> 00:51:35.090
and then I'm bridging that into my offer. Does that make sense? Okay? So that's very key. You have to give somebody what they actually want. You could help ex military create a speaking platform, wish they can get on stage, share their story, as well as on social media. Right? A lot of people wanna do that because I've seen other ex military do that. But you can see here again, what we're doing is we're attaching it to some something tangible.

00:51:35.250 --> 00:51:42.345
Okay? So in that example, it like making money and and so on and so forth. So an executive coach is another one. So no executive

00:51:42.505 --> 00:51:44.985
wakes up and they're like, man, I

00:51:45.785 --> 00:52:00.010
really want to be a better leader, and I want to learn it from some random person on the internet. They might want to be a better leader. Like, they might buy leadership books and whatever. But it's it's tough to get them to actually reach out to a rando on an ad

00:52:00.250 --> 00:52:01.370
to buy that.

00:52:01.610 --> 00:52:02.970
You know? So instead,

00:52:03.050 --> 00:52:11.815
what you do is you make it more tangible. So you help them to get promoted or move to a c level position in a different company. And by helping them become a better departmental

00:52:12.295 --> 00:52:21.255
leader, they show a consistent track record and they could go to a different business or they could get promoted in the current business. Right? I already gave you that example. Right? You could also help home service businesses

00:52:21.530 --> 00:52:28.410
remove themselves from the day to day and the fulfillment and cut their hours down to forty hours a week. That's another real example that worked really well with our program.

00:52:29.930 --> 00:52:35.930
In the process of doing this, you do help them become a better leader. But you see how we just kind of wrap it differently.

00:52:36.305 --> 00:52:40.465
Okay? We have to wrap it in something that is an existing desire for them.

00:52:40.865 --> 00:52:42.225
So a great example

00:52:42.465 --> 00:52:45.665
that I can give you for my own business is I started SDA

00:52:46.225 --> 00:53:11.065
wanting to help people become better sales leaders. Okay? Like my big thing when I started the company was I was like, man, the reason people can't scale their sales teams is because they're just bad sales managers or the bad sales leaders. But what I realized is nobody woke up. I mean, you know, again, they might want to get better at sales management, but they're not really waking up thinking like, man, my number one problem is I'm a bad leader. You know, it's kind of a hard thing to admit to. So what I had to do is I had to kind of beat the recruiting

00:53:11.225 --> 00:53:19.920
to like, okay, let me place a rep with you. That gets them in, and then I place them a rep. Great. But then what also I can do that starts a relationship where I can audit their business,

00:53:20.160 --> 00:53:27.840
fix their sales team, make them a better leader, yada yada yada. So it's kind of the cheese and the broccoli approach. Right? The broccoli is the leadership,

00:53:28.160 --> 00:53:36.225
but the cheese is like whatever you need to do to get them in. Okay? So I went through the same exact thing here. All right? So with RCA,

00:53:36.865 --> 00:53:40.225
it was a very different example. So RCA was the program we had that helped

00:53:40.705 --> 00:53:41.825
reps essentially

00:53:42.065 --> 00:53:47.030
or sorry, it helped everyday people get into high ticket sales. I kind of already talked about it earlier. But

00:53:47.750 --> 00:53:49.510
when I first launched RCA,

00:53:49.510 --> 00:53:54.790
nobody knew what high ticket closing was. Like, it wasn't even a term that much. It wasn't even known.

00:53:55.030 --> 00:54:01.205
And people weren't out there trying to do it like they are today. So I had to market again to people who wanted to make money online.

00:54:01.365 --> 00:54:12.085
Alright? That was the existing desire. And then I was like, hey, that's like silly. That's like tough. Like, shouldn't do that. And then what I had to do is channel that into a new opportunity for them to achieve the same thing, but through

00:54:12.325 --> 00:54:13.445
remote closing. So

00:54:14.360 --> 00:54:22.600
for more training on this, I really recommend going through advanced market research and copy platform. Okay? It's just in the school module, just like it's in this module. Just

00:54:22.920 --> 00:54:30.375
look down. Okay? From where you're at, you can probably just click on it. Pretty easy. Now let's move on to guarantees. So another thing that's gonna make your offer far more attractive

00:54:30.535 --> 00:54:37.495
is making different types of guarantees, and there's different types. There's guaranteed or you don't pay. Like, we'll get you resolved or blah blah blah blah, you don't pay.

00:54:38.200 --> 00:54:43.880
Guaranteed or we work with you until you do. We'll give you more time. That's not really great, but it's better than nothing. Okay?

00:54:44.680 --> 00:54:48.760
Performance based. So you can charge per lead generated, for instance. Hey. We only

00:54:49.080 --> 00:54:50.520
charge you for the leads we generate.

00:54:51.145 --> 00:54:52.505
Money back if you succeed.

00:54:53.065 --> 00:54:55.305
So this is the classic gym launch guarantee,

00:54:55.545 --> 00:54:56.425
which was like,

00:54:56.905 --> 00:55:00.825
if you come in and lose 10 pounds in the challenge, then you'll get your money back.

00:55:01.705 --> 00:55:09.500
We cover the cost guarantee. If it doesn't work, we'll reimburse your ad spend. If it doesn't work or pay for itself, we'll write you a check for the difference.

00:55:09.900 --> 00:55:11.180
Experience based,

00:55:11.260 --> 00:55:21.755
which is if your first coaching call isn't valuable, we'll give you a 100% refund. So anyways, there's tons of guarantees and get creative with it. I kinda just gave you the most common ones that are used and recommended.

00:55:22.075 --> 00:55:22.555
So

00:55:22.955 --> 00:55:38.980
they're also all of these are conditional. Right? They're like, there's conditional and unconditional guarantees. Unconditional means for any reason. That's usually only for, like, lower ticket stuff. Right? Conditional, obviously, they have to fulfill certain requirements to get the refund. Okay? So with anything you do that's higher price, it should always be conditional.

00:55:39.220 --> 00:55:44.020
And if you're gonna do a guarantee, I recommend some sort of reimbursement based or refund guarantee

00:55:44.180 --> 00:55:46.500
attached to conditions that if they fulfill,

00:55:46.955 --> 00:55:58.475
makes it highly unlikely they wouldn't succeed. Okay? So really, the easiest way to think about is your conditions should be the exact things that they have to implement or do in the program to make the offer and

00:55:58.795 --> 00:56:04.110
to to succeed with the offer. Does it make sense? So like, you think about the most important things in your client success journey,

00:56:04.270 --> 00:56:05.710
if they do those things,

00:56:06.030 --> 00:56:07.230
that's essentially

00:56:08.670 --> 00:56:10.910
what the guarantee should be like. If they do those things,

00:56:11.230 --> 00:56:18.995
everything should work. Therefore, they shouldn't need the guarantee. So you put the most important things in there. And if they do those, it's like, well, if they did those, there's a 90% chance

00:56:19.235 --> 00:56:27.875
it's just gonna work. Okay? So one thing with guarantees that a lot people don't understand is the main reason you do it is really to stand out in your marketing.

00:56:28.390 --> 00:56:35.750
It's not to help your sales team. I mean, will it help your sales team? Yeah. A little bit. I mean, I think that it doesn't matter that much.

00:56:36.070 --> 00:56:41.830
But the big factor of why it does help so much and why a lot of people use it is it helps a lot in the marketing. Okay?

00:56:41.990 --> 00:56:42.790
And so

00:56:43.995 --> 00:56:46.155
that being said, if you already generate a lot of leads

00:56:46.715 --> 00:56:56.315
and lead generation is not a constraint for you, it's probably not worth it. K? Now we're gonna talk about proof volume. So if you watch my ads, I stack tons and tons of proof.

00:56:57.030 --> 00:57:03.910
And this alone can be the differentiator between ads and cold acquisition working or not working. Okay? So for instance,

00:57:04.390 --> 00:57:20.785
I once ran a cold email campaign, and we were testing some messaging. We were getting like a 1% response rate or something like that or 1% book rate. And then I put, like, my biggest 15 case studies at the it's like, PS, here's a few people we worked with. And it was, like, 15 of the biggest names, and it tripled

00:57:21.105 --> 00:57:22.225
the conversion

00:57:23.105 --> 00:57:34.080
of the cold email, which is pretty crazy. So if you watch Alex Becker's high roast ads, he does the same thing. Hermozy gym launch ads, they do the same thing, just like insane amounts of proof. So if you can overwhelm with proof,

00:57:34.320 --> 00:57:39.200
it alone can make your ads work even if you have a lot of this other stuff. And then if you combine that, though,

00:57:40.085 --> 00:57:40.725
with

00:57:41.525 --> 00:57:59.410
the three s formula, all the stuff we've been talking about so far, it can really, really take it to the next level. Okay? So you don't need to have big names to, like, proof stack. I mean, obviously, it helps if you do. But you can just hammer out 10 to 15 case studies of people who are just like them with amazing results. Just make sure it's compliant based on your industry regulations, what you're doing, etcetera.

00:57:59.730 --> 00:58:07.490
The last one, or we're getting close to the last, we're gonna cover here is done for you hybrids. So this can work with b to b, b to c, and be to solopreneur.

00:58:07.490 --> 00:58:21.835
So this is where you don't do full done for you, but you do parts of it, and it makes your offer way more attractive and sound way better with marketing. That's why you do it. So I'll give you an example. It's like, we do done for you sales recruiting, but we don't do done for you full sales team management. Okay?

00:58:22.560 --> 00:58:26.080
That's by design. Right? It's far more scalable, it's far more profitable,

00:58:26.160 --> 00:58:39.745
and allows our marketing to do very, very well. But nobody comes in and buys and thinks we do full team sales team management. I mean, we never say we do that. We also do done for you marketing setup, but we don't do done for you ongoing ad management. Well, now we can consult on the ad management,

00:58:40.145 --> 00:58:46.385
but we don't do the ongoing done for you ad management like an agency, which with a lot of our clients, they're not running

00:58:47.265 --> 00:59:10.555
a ton amount of ad spend. So it's just very, very easy. It takes like twenty minutes a day, if that, for the entrepreneurs managing themselves, plus we just tell them exactly what to do. So it actually is better for them that we do it this way, but it's also better for us because it's more scalable. Right? Example number two is for RCA, when we are helping people get them jobs, okay, we would basically apply to jobs for them using their resume. Like, we would just go out and apply for them. And we we would just force them on the offers,

00:59:10.715 --> 00:59:14.235
which not only got them results, but also because we had a guarantee

00:59:14.795 --> 00:59:27.520
and made it so it's like, man, like, you had all these offers. Like, you didn't take any. I mean, that's why the results were so good. We had a huge, huge success rate with RCA compared to a lot of other B2C programs. So another example is like, maybe you help people start Etsy stores,

00:59:27.760 --> 00:59:35.865
but you could do the initial store setup done for you, and then they do everything else. Right? And that also could allow you to hit people who want more like passive

00:59:35.865 --> 00:59:40.585
income from their nine to five job, but you're not doing full done for you. So you get better lead quality

00:59:40.745 --> 00:59:42.425
and you could get better higher pricing,

00:59:42.905 --> 00:59:51.330
and it sounds better, but you're not doing full done for you forever. Right? Like, you're just automating one of the processes for them. Another example is you might help people with systems and operations,

00:59:51.730 --> 00:59:53.570
but maybe what you do is

00:59:54.130 --> 00:59:58.530
you place an ops manager on the front end, which makes the offer way, way more attractive.

00:59:59.175 --> 01:00:05.175
And then you make that one placement. And then after that, for nine weeks, ten weeks, twelve weeks, whatever it is, you coach them

01:00:05.415 --> 01:00:29.798
and the new hire that they got on all the systems and implementation, your sauce, and your expertise, and everything you do. Right? So doing this allows your marketing to be way more attractive. It isn't full done for you. So you can systematize this one piece and still make it very profitable. It'll increase your price, and that'll make it more than enough worth it. And allows you that broccoli cheese approach where you can kind of give them the done for you thing on the front end in order to kind of bring them in to coach them on what they really need.