https://www.youtube.com/watch?v=3ktgTBNlg7M

1 00:00:00.000 --\> 00:01:00.000 i would rather have a solution that i
can get uh ninety percent of the marketplace to get an 80 win rather
than have five percent of the marketplace get a 100 win \[Music\] i uh
slept like a cherub which is a small angel baby uh last night my gosh i
feel like a human being um and so i wanted to bring you a question that
layla asked me yesterday and i thought that would be a good podcast
topic she was like what would you actually do like right now you're like
well like if you had if you were you know roll back the time clock and
this had happened when we had our six uh gems like what would your
actual what would you do to uh approach this and what would your play be
and so i wanna i wanna first uh just at least say with my big disclaimer
here is that uh something that i don't discuss a lot but i think is
worth mentioning is that the advice that i give in

2 00:01:00.000 --\> 00:02:00.000 general i try to cater to the audience
that i'm speaking to if i ran a gym i would probably run it somewhat
differently than what we espouse and that is because i am not you and
you are not me and so i would rather have a solution that i can get uh
ninety percent of the marketplace to get an 80 win rather than have five
percent of the marketplace get 100 win um and i've run my business that
way and i think that is why we've been uh really successful is because
it's the same thing with like a weight loss program like if i can get if
i could get you know 90 of people to have a great result uh rather than
you know 10 of people to have a crazy crazy result then i would rather
serve than 90. um elon musk even talks about this he's like i'd rather
do a good amount for a ton of people rather than a lot for a very small
amount um and so we've taken the same approach in terms of how we uh you
know like when we make offers all my focus is like how can i make the
best offer that anyone can sell

3 00:02:00.000 --\> 00:03:00.000 right um how can i make a sales process
it's so easy anyone can do it not necessarily like like for me i'd be
selling high ticket over the phone all day long right but a very small
small segment could actually do that successfully at scale so that's my
first disclaimer now that being said this is exactly what i would do um
if my gyms you know were were in the midst of this uh you know covid
stuff so first off uh i would get out of the leases that i have now
independent of of because there's some people were like well we're going
to get out of this sooner or later i have no idea but what i know is
just opportunity if i have the opportunity to to to flip my facilities
in an environment where i'm being encouraged by both government and my
uh clients to make the flip and remain open uh then i'm going to take
that opportunity and flip to a more profitable model right like we're
giving we're being given permission in this instance to do that with
zero repercussions it's even being

4 00:03:00.000 --\> 00:04:00.000 encouraged and so the first thing is i
would take all six i have my recurring base of members and i would flip
them to remote now then i would try and cut um all of the rent uh for
each of those locations maybe even get out of the lease i would likely
just try and negotiate three to six months of free rent see how it
shakes out but likely um this is what i'm saying i would do you don't
need to do this all right i'm saying like this is how i would this is
how i would play my cards all right and so what would happen is let's
say each of those gyms is at 30 000 a month right uh in in recurrent
just efts not running cash flow nothing else not supplement just like
they're doing 30 000 a month cool so now i've got 180 000 a month that i
have in recurring now let's be realistic let's say 25 of those people
drop off because it's not an owner operated facility i've got staff they
don't care as much they're not rubbing bellies and kissing babies the
way i would if i were at a single location um and so let's say i lose 25
so that means i lose roughly you know 45 000 off that um i think no

5 00:04:00.000 --\> 00:05:00.000 40 yeah right 40ish right so lose 40
thousand on that so now i'm down to like 140-ish or 135. uh per month
that's my recurring nun okay there's a lot of cash there all right then
i would take my best trainer at each facility the guy the guy or gal who
cared the most who was the most engaged with members who was the most
upbeat the most positive um and truly cared about uh keeping them and i
might have to take two at each facility if there's too many for one
person to handle that's fine uh the rest of my personnel would be
considered non-essential because in this new model they would not be
able to provide value all right that's what i would do all right so i've
got let's see we got six that means i've got 12 staff that i'm keeping
on to maintain a hundred and thirty five thousand dollars in recurring
revenue per month now let's say conservatively i pay each of these
people three thousand dollars a month right to stay at home now that's a
great for some of these guys that might actually be a big pay jump from
what they were doing in person cool so now they're making 3 000 a month

6 00:05:00.000 --\> 00:06:00.000 staying home to just provide
accountability all right that is it so big big thing here now like at
gym launch what we're doing is we have um we just so i'm kicking this
off today uh starting on monday we're running 16 remote workouts per day
basically every hour during the normal workday uh there's going to be a
class that's being held and that way all of our gyms can cut their
overhead and just have all of those workouts as fulfillment for their
online clients right and so now they don't even have to staff that stuff
it's already been taken care of centrally by all of us so all of our
gyms can participate that cut their over even further right now rewind
back to the six gems so step one i'm gonna get out of the leases that i
can because because right now uh you have a pretty good opportunity to
be able to break leases uh and or at the very least to get three to six
months of free rent uh right now so that's one two i would flip um my my
recurring revenue into uh remote which would be nutrition and
accountability primarily i'd have the

7 00:06:00.000 --\> 00:07:00.000 the workouts that are being done if i
have 12 trainers i can say each of you guys are responsible for one
workout a day that's it that's one every hour and that allows all of my
people to participate in a session at any given time but it's not that
hard because each of them can do it from home right and the whole point
is that like i'd love to say it's gonna be from the gym but reality if
you're getting quarantined you might not be able to even go to the gym
so and most of the clients are even consuming this from their homes and
so it makes sense to have a trainer that's from home not a big deal so
that's that's what i have on the workout part big big caveat here no one
cares about the workouts if you're selling over the phone you can get
workout apps online you know like uh you know beachbody and kayleitzin's
got a sweat app like there's all these other apps that are like 10 to 20
a month that have probably better already pre-existing stuff so you're
not going to win on the workout front right you're gonna win on the
accountability and the service that's how we've always won and that's
how we need to keep like remember the rules haven't changed your
workouts never matter they don't matter now right what matters is the
relationship that you have these people that they feel like someone is
checking in on them

8 00:07:00.000 --\> 00:08:00.000 right they pay for you to pay attention
that's how it works all right so i have my 12 trainers let's say i'm
paying them 3 000 a month so i'm paying 36 000 a month in overhead for
those trainers right and the only thing they have to do every day is one
workout and then reach out to the customers so make sure that they are
uh being taken care of making sure that their head space is good making
sure that they're not going to the pantry and rating it and getting
cookies every day make sure making sure that they attend one of the
workouts that is what they do all day now that's it that's all they have
to do all right now overnight by doing this i have a hundred thousand a
month that's left over in all profit holy smokes that's a pretty good
deal but wait now what do i do with my time right so my time would be
focused um the other thing that i would ask them to do is uh i would
dedicate their first two hours of the day every day to doing 100 cold
reach outs all right they want to pay for themselves cool 100 cold reach
outs what you do is if you have someone who who's

9 00:08:00.000 --\> 00:09:00.000 who's interested you book them on my
calendar i'll close them all right so i'm going to fill my day up with
uh appointments that my team my 12 people doing reach outs are going to
set for me all right and then i'm going to close beyond that um i'm
going to start turning on cold traffic and i'm going to run because
right now in this hypothetical environment which is the real environment
currently uh lead costs are like 50 to 75 off it's nuts right i've never
seen anything like this it's crazy um and so we would be scheduling uh
phone calls to sell and so my trainer's day looks like this first two
hours of the day all they're doing is doing cold reach outs they get
their daily 100 you give me 100 reach outs that's what you owe me all
right get me one schedule today i don't care just give me one schedule
today all right what are they going to say they're going to say hey name
do you know anybody who's trying to stay in shape during the quarantine
who doesn't want to get make turn their sweatpants into yoga pants by
the end of this ha right whatever now when you say that all of a sudden
the people who are responding are like oh this person's not

10 00:09:00.000 --\> 00:10:00.000 fishing they're asking genuinely if i
know anybody right and now more than ever people have a lot of good will
that they want to help out other small business owners like that is
definitely the zeitgeist of this moment zach has a german word for the
general vibe of an era anyway so people are trying to help out small
business owners so if you're asking like that you're not even soliciting
them you're just saying hey do you know anybody and a lot of times i'm
like you know i'm trying not to lose weight perfect or gain weight
perfect let's get you booked for a call we have a totally remote thing
to make sure that you stay healthy etc right so their first two hours
they're doing the daily reach outs then they're doing all the recess to
their existing customers that they're maintaining right and then one
hour of the day they're uh required to do their workout now most of the
time you'd want to have your your trainers are working out anyways at
home so it's like just record it like have fun with it right and then
that way all of my people can actually have more sessions than they ever
had in person so i'm adding value then from what i used to have they
have more availability than we've ever had they have more variety
because they probably have access to trainers that they couldn't have
had access to before all right and it's also my best coaches so it's
like you know we all know

11 00:10:00.000 --\> 00:11:00.000 we've got a couple coaches who run
stuff and if somebody use news coming in you probably want to put them
with jessica and not eric right you're like no jessica's awesome don't
put it in eric's as her first session right maybe maybe save that for
some of the later people who already like us right so those are the
trainers who are going to be getting those at-home workouts big picture
again big reminder no one cares right no one cares about the workouts
they only care about the accountability all right so if i flip my gyms
right i renegotiate my leases i push them out or i break them i take my
recurring i would get into 100 remote i would let go of non-essential
personnel or not who are not generating revenue or keeping revenue
through fulfillment right they're generating revenue in their first two
hours a day by getting new calls the rest of their day they're focused
on doing the fulfillment for the for the clients that they already have
and maintaining that eft and recurring um they're filling back the
bucket because i'm going to be doing the sales because in in a time of
strife i'm going to do what i do know how to do best and make it rain
right and so the people who are not going to be able to succeed are the
ones who don't want to roll up their sleeves and get dirty if you're the
best salesman at your gym then you should sell that's what you

12 00:11:00.000 --\> 00:12:00.000 should be doing right and then they do
their one workout a day so that's what trainers have to do three things
reach outs to to to get new customers reach out to existing customers
make sure they know we're paying attention and then finally that they're
doing one workout a day which they should be doing for themselves
anyways they're just gonna record it awesome boxes checked all right my
day is gonna be making sure that we're marketing and filling the bucket
back up all right that's it that's my day all right so i'm marketing and
taking sales calls i'm taking sales calls from paid traffic taking sales
calls from from outbound i'm taking sales calls all day long that is
what my job is to make it rain and feed the machine all right that is
what i would have done um if i had been in that situation or in this
situation i'm not necessarily saying you do that i'm telling you what i
would have done and that would be the play that i would do because it
would give me permission to overnight transform six facilities into one
massive recurring revenue stream that's 100 remote that is high higher
profit margin for fulfillment and i will say what i said yesterday but
i'll say it again uh so hopefully it sinks in is that just

13 00:12:00.000 --\> 00:13:00.000 because this has changed does not mean
it's bad right eight months ago i walked through all the math about why
having a remote fulfillment is a better solution there's a reason people
like going online right there are better margins right there are the
thing is is that a lot of people felt like for some reason that that was
bad that's okay but now people are being forced to do it doesn't mean
it's bad it actually makes more money and now we're getting permission
from the government and from society to do this for ourselves so i would
take that opportunity and uh run with it so that's my rec not my
recommendation excuse me that's what i would have done uh you can take
that for which you will but that is exactly what i would have done step
by step that's how it broken out my trainers that's what i would have
done with my overhead that's what i would have redefined their
responsibilities as and then beyond just lead them through the crisis um
i would also try and paint a vision or for a better future it's like
guys you liking this you're staying at home you can work out whenever
you want um you're just actually getting people good results because
we're making sure that they're just staying accountable and they need us
the most right and one small note that i want to

14 00:13:00.000 --\> 00:14:00.000 add to this when you're selling or
when you're talking to customers everyone right now is at the airport so
if you've noticed everyone at the airport is always just like
immediately a three out of ten three out of five stressed right they're
already at six out of ten stress levels what people want is to feel good
all right and so that's gonna and so when you get on the phone if you
wanna sell right you gotta make them feel good like the fundamentals
have not changed it's just you got a little bit more resistance when
you're starting because they're already at a negative point they're not
at neutral most people are now going to be a little bit negative because
they're quarantined they got their kids around they feel like they're
smelly they're you know they they feel sloppy and bloated because
they're eating cookies all day right and uh you know they're uncertain
about the future what they want from you what your employees want from
you what your clients want from you and what your prospects when you get
on the phone with them want from you is one word hope all right so you
have to be the hopeless that exists all right and the way that

15 00:14:00.000 --\> 00:15:00.000 you have hope is that you have
optimism about what you are willing to do to endure and as long as you
know that you're willing to endure just about anything to get through
this then you have confidence and certainty in the fact that you will
get through this and you can you can uh convey that conviction to your
prospects to your team and to your to your customers because that's what
they're going to want they like right now therapy is blowing up life
coaching is blowing up in terms of like growth tons of people want life
coaches tons of people want therapists right now because they're
stressed out of their minds and so if you're looking for more ways to
provide value someone will buy after how you've made them feel from the
first 15 minutes of the phone call the first 15 minutes is just like
caring about them throwing them some love making them feel good about
like hey we're going to get through this no worries right they want to
be around more of that they want more of that feeling the fact that
you're going to sell them weight loss and that's going to be the vehicle
that you monetize is almost secondary to how you will make them feel in
that moment because they're

16 00:15:00.000 --\> 00:16:00.000 just going to want to feel more of
that and so that goes for your trainers reminding them dude like we're
just trying to make people feel good right now all right we're trying to
get people through this like if we can get them to put down the cookies
and move a little bit they're probably going to feel better and if
that's what that's what our value is right now then that's what it's
going to be all right so that is what i would do step by step um if i
have my gym drink covered right now um i make no recommendations you are
all grown as individuals and make your own decisions for yourself but
that is what i would do so anyways hope you have an amazing wednesday
keep rocking you can make it through this um you just gotta want it all
right lots of love catch you guys soon \[Music\] you
