https://www.youtube.com/watch?v=-UvmyixFszw

1 00:00:00.000 --\> 00:01:00.000 it's my viewpoint that if a business
cannot pay a hundred dollars or 200 to get someone in the door they
don't have a marketing problem they have a business problem \[Music\] i
wanted to talk to you about a uh a cash flow process uh that i've i've
been consistently walking through for the last couple months part of
this started with the book that i'm still currently working on called
building a better mousetrap um and all of that is around how you can
increase how much money you make per customer that comes into your
business and so the easiest way to know if you have an issue um is
thinking about this single question so i'm dealing with a lot of
agencies on our software side and what i'm essentially walking them
through is a cash flow quadrant but not the same cash flow project that
you'd have in like robert kiyosaki's rich dad poor dad but a cash flow
quadrant for how you can increase the value per customer

2 00:01:00.000 --\> 00:02:00.000 because fundamentally um it's my
viewpoint that if a business cannot pay a hundred dollars or two hundred
dollars to get someone in the door they don't have a marketing problem
they have a business problem right they have a cash flow issue and they
don't know how to acquire customers and make cash flow up front and so
what i'll do is i want to walk you through the four-step process that i
look at when i'm looking at a customer that's coming in the door and
that doesn't matter what they're coming in on they could come in on a a
free offer they could come in on a lowberry offer like a a new client
special or something like that that's a 29 i think 21 doesn't really
matter or it could be a straight up value offer where there's no
discount whatsoever there's no no free no nothing um simply value being
provided so those are fundamentally the three types of offers that exist
in the marketplace free discount and value right but all of them can
still lead to the same mousetrap right and so the first thing that i'll
look at is products right is there something that we can add on in this
sales choreography when someone comes in the door so we can immediately

3 00:02:00.000 --\> 00:03:00.000 add a product purchase to bolt-on to
additional to an initial service package right so initial service
package could be x period of time x number of sessions uh or a single
session done at a discount or even a single session free like an
evaluation or or whatever right the point is is and this works in any
industry right you could come in and obviously in the gym and fitness
space the next natural cell for products would be supplements right uh
if you were in a a chiropractor's clinic the next natural cell might be
uh orthotics or a special pillow or some sort of brace or whatever right
it's a physical product someone can immediately purchase from you at a
very high margin specifically to go with the service that you're also
selling them another example might be if you're in the beauty space you
might sell masks or serums or creams all of those things would be the
first quadrant of how you can increase how much you make per customer
right so let's say i'm gonna use a hundred dollars at the average like
if you can't pay a hundred dollars for every person who walks in the
door in your marketing then you're not gonna have a business

4 00:03:00.000 --\> 00:04:00.000 right you can't make if you can't make
a hundred dollars on a customer's coming in in a service-based business
you're not going to succeed and has nothing to do with your market it's
because you don't have this process down so even if they come in for
free boom you sell 100 200 per person in product all right you've
already broken even on that but if you still want to really beat and
dominate everyone in the market you go to the second quadrant which is
how can i get them to add on additional services right so this might be
introducing them to uh upsells within your core offer so if you were a
facility the gym facility for example you might have your large group
training but you might also have accountability nutrition coaching
semi-private training all of those things would be add-ons to the
initial core offer all of this will increase the average lifetime value
and investment of the new customer that's coming in which allows you to
make more money all right that's in a gym space if you were looking at a
med spa someone comes in for a botox you know treatment or whatever uh
first thing you're going to do is try and get them to buy a package
that's more of the same thing but then also

5 00:04:00.000 --\> 00:05:00.000 give them what i would consider a menu
close which is uh let me show you what other things we have to offer we
have coolsculpting we have filler we have microdermabrasion we have skin
tightening we have whatever right all of those things would be showing
them what other services and offerings you have for that exact customer
so that they can so that they can become more valuable you and that you
can become more valuable to them right so cash flow quadrant number one
is product cash flow quadrant number two is add-on services number three
is more from a uh for somebody who's more capital constrained and wants
to make more money per customer up front you can add on prepaid or
financing and so if you can if you're in a really established industry
you can get financing companies to do this for you care credit is
massive in the healthcare industry people get you know get boob jobs
financed they get anything financed through care credit right if you can
establish that in your business you can get uh sometimes half or more to
finance the packages that they may have purchased from you so the third
piece there is just simply

6 00:05:00.000 --\> 00:06:00.000 asking and offering a 10 discount to
get someone to pre-pay and there's a key note there you don't say paid
in full you some offer someone to prepay that's the language around that
to drag some of that revenue up front or certain cash up front so that
you can further liquidate the cost of acquisition now let me let me show
you how powerful this is with a single math example if you have 10
people who walk in your door and let's say you sell five of them all
right and one of those five does a prepay on your service right and
let's say everybody else averaged out to 500 um for the for the initial
purchase but one of them paid twenty five hundred dollars right that one
twenty five hundred dollar sale increases the average ticket from five
hundred to a thousand across all of the customers that you had in the
door so even if a small percentage take that offer it can be a massive
increase in the average order value average cart value average cash per
show whatever way you want to call it um and can change the game in
terms of how you can acquire customers and beat out the people in your
competitive space all

7 00:06:00.000 --\> 00:07:00.000 right so i went for i've said three so
far so product is number one add-on services number two getting people
to pre-pay for services that are happening in the future number three
and then number four is continuity so is there a way that we can also
tie continuity into this acquisition process right so uh i'm gonna i'm
gonna not do the gyms uh because everything i do is about gems so i'm
gonna try and uh apply this in a different setting so uh let's say we
have uh i mean a med spa is an easy one to use because i just brought it
up so someone comes in for a discount botox right first thing there they
might not make the surgeon or the med spa center might not make a lot of
money in that first transaction they might make a couple hundred dollars
but that should at least cover the cost per show the next thing they're
gonna do is give them uh products right the products that are gonna go
with that might be uh the serums the macs at home because everything
that someone's coming in for there wants to look younger and more
beautiful right and so all all the products that would go along with
that uh would immediately be sold from like a take-home kit standpoint
like if you

8 00:07:00.000 --\> 00:08:00.000 want to maintain these results or
extend these results you should have these things the next would be our
menu clothes right do you want to do microdermabrasion you want to do
the coolsculpting do you want to do filler whatever right then we're
going to prescribe a package that's going to be their total beauty
package um which might take six months or whatever to get them to where
we where they want to be and then the continuity that we're going to tie
into this is a process that i like to call down selling the upsell all
right and so what that is is typically you'll want to have people pay
more in the beginning because it costs more to acquire a customer it
costs more to onboard a customer that does to maintain a customer and so
if we're getting more cash up front for these customers they're going to
be more invested in our process and it also allows us to cover the
overhead of getting them activated getting them on board and giving them
a great experience but then you can simply offer them the same thing
that they've been getting but just on a recurring basis and do it at a
pretty decent discount and most people will jump at that offer what it
does is then locks that person into regular recurring cash flow for the

9 00:08:00.000 --\> 00:09:00.000 business and then massively extends the
lifetime value of the customer and so i'm going to walk you through one
single math example then i'll sign off but hopefully you can look at
that quadrant within your existing sales process and say how can i
implement each of these four things into the sales choreography in my
business so that i can outspend my competition so that um i can spend
five hundred dollars per person who walks in the door a thousand dollars
per person walks in the door and the reason that's so important is
because if you can get that cash per show high enough then you can spend
on multiple different channels of acquisition you can have referral
partners you can have you can have cold traffic you can have affiliates
you can have all of these different venues you can have you can have
direct mail you can have uh social media stuff you can like all of these
different venues cost different amounts but at a certain point all of
them become affordable and that is what unlocks the huge amounts of
growth that are available for a business owner and it comes from the
back not the front and so everyone thinks they have a marketing problem
but typically it's because they have a monetization issue they're not
good at

10 00:09:00.000 --\> 00:10:00.000 cash flowing or choreographing the the
money that they're making per customer right so to to bring this all
home what we're trying to figure out is how much can we make up front in
the first 30 days and then what's the lifetime value of the customer the
cash value for the first 30 to 60 days is going to be important for how
you spend money to get them in the door the lifetime value on the back
end is going to be how much money you're going to be able to extrapolate
and how much revenue you make per month based on your sales volume so
for example if you sell 20 people every single month and you know that
your lifetime value per customer is 2 000 total and you sell 20
customers per month total then it means that your business should cap
out at 20 times 2 000 which should be 40 000 a month and that's an easy
way to back into like if you feel like your business has not been able
to grow it's because one of t is two numbers either you're not you're
not capturing enough on the back end or you don't have a big enough
inflow that is it that's all there is to it you can massively simplify
this now if we're looking at trying to back

11 00:10:00.000 --\> 00:11:00.000 into that number so let's take a
business a that can only pay a hundred dollars per show which means
they're not making a lot of money and then option b is we've got a
business that could pay a thousand dollars to show let's see if we can
reverse engineer a thousand dollars per show uh into a business model so
if someone comes in and let's make it an attractive front-end offer
let's make it a let's make it a a 19 new client special whatever right
evaluation it doesn't really matter what industry it is it works the
same way all right so someone comes in for a 19 thing they show up all
right from there let's say that we know that we're going to close half
uh onto uh the next service package right now that next service package
let's say the average is going to be two thousand dollars all right now
that's going to be over an extended period of time cool let's say that
our minimum that we can get down is 500 because that's what we say is
minimum in order to buy and that's why we're closing half and not 100
right the next thing we do is we sell 200 per customer now if two
thousand dollars was what the package was we closed half

12 00:11:00.000 --\> 00:12:00.000 we're at a thousand dollars in
lifetime value all right just from that first transaction half times two
thousand is a thousand all right now of all those people that say yes
now let's say we sell each of those people two hundred dollars for the
product all right now we added 200 so now we're at 1200 lifetime value
then let's say uh two out of those five people that we you know that we
sold for example um decide to add on an additional thousand dollars for
the services all right from your other service offerings that you have
all right so now we've got two fifths times a thousand uh which would be
four hundred dollars uh that we add again to the customer so now we're
at sixteen hundred dollars per show all right and then again on the back
of that we say hey we know that from every of the five that we have um
we can get uh let's say another two to sign owns a continuity at two
hundred dollars a month and we turn out at ten percent which tax another
two thousand dollars

13 00:12:00.000 --\> 00:13:00.000 onto two of those customers all right
and so that would add yet another eight hundred dollars on top so you'd
be at twenty four hundred dollars per person that walked in the door for
a free offer all right that is how you can beat everyone in your
marketplace is that you consistently execute the process right that
means every single time you have a choreographed handoff between service
a or service one and sale number two so number two and cell number three
so number three and cell number four and if part of you is like man i
feel like i'd be selling all the time yes is the answer but but the
secondary correlate to that is that if you look at the research that
exists on how to maintain a customer over the long haul it's about
expansion revenue it's about ascension it's about selling them more
things over time so that they can continue to be reminded of the value
that you provide because over time people always want new things

14 00:13:00.000 --\> 00:14:00.000 and so it is your duty if you believe
in the value that you provide to make the offers to those people and
communicate that process in a seamless way so that every part of your
business knows my objective is passing the baton from point b to point c
from point c to point d and all of that choreographed process ultimately
results in a front end that allows you to spend whatever you want per
customer uh because your backend is so strong and that process that cash
flow quadrant is the reason that jim launch has been able to stay number
one in this industry despite the saturation despite the charlatans
despite the many people who would claim that they're doing the same
thing but they're not because they don't execute that process and at the
end of the day what you are always going to be paid for is the value
that you can create in the marketplace we've been able to choreograph
that process for the businesses that we serve so that they make more per
customer and so that their customers are better served and that's
ultimately what you have to do what we have to do as entrepreneurs and
business owners is how can i serve

15 00:14:00.000 --\> 00:15:00.000 my customer in the highest and best
degree ever and how can i do it in as seamless a way as possible so that
i can have as little operational drag as possible so that um i can
outmarket my competition and continue to play the game so anyways uh
that cash flow uh quadrant is is how i think through the choreography
around uh creating selling systems so that our gyms and our businesses
can beat out their competition and i would encourage you to print that
out put it put it somewhere so you can think about every single sales
process that you have through that lens and i guarantee you that you'll
make more money that's what that's what when i do my consulting days and
i sell consulting hours this is the process that i walk those business
owners through and nine times out of ten um we can almost double or
triple the amount that they make the customer simply following that
process so i hope that was valuable for you i hope you have an amazing
saturday execute that make more money serve at a higher level and crush
it lots of love catch you soon
