https://www.youtube.com/watch?v=okA9Yt2KZuk

1 00:00:00.000 --\> 00:01:00.000 i own a portfolio of companies that
does 85 million a year and i have nothing to sell you and i was recently
invited to taki moore's masterminded keynote for his eight figure and up
group and it was a really fun discussion and presentation that i was
able to give i was very humbled to have been invited and we talked about
two main things that those business owners wanted to know so if you're
not at that level this may not be for you but we talked about two things
the first was how to scale a high performance sales team so among our
portfolio companies i think the biggest team we have in those companies
is a 26 person sales team so we know what it looks like to recruit hire
manage incentivize and drive high performance sales we've done that for
both inbound and outbound sales meaning cold calls versus taking you
know phone funnel type type inbound leads through applications so we've
done both of those and the other was more high level so the conversation
is kind of split into two pieces one is focused very very sales focused
and the second is focused on what i would consider high level
observations of entrepreneurship of things that we've learned lessons
beliefs that have served us well um in creating the portfolio company
that we have so uh if you don't know who i am i'm alex mozy i own
acquisition.com i have nothing to sell you and i hope you enjoyed the
video uh so this is alex and

2 00:01:00.000 --\> 00:02:00.000 layla power team uh they run a
portfolio of companies uh probably many of you guys know them from their
gym launch days and times uh team what i'd love to chat with you about
is scaling legion with um with outbound uh and then uh let's talk about
uh scaling and exiting dude can we talk about outbound because a while
ago like when we first met you were like the king of the ads right yeah
and then you then you worked and the ads kind of disappeared and i want
to know kind of what i don't want too many people to know that though
are we allowed to know that or you don't no you no no no no we're we're
we're cool everybody here under a friendly a that's my understanding
right friendy a yes 100 friendly if you're cool with that can you type
for nda into the chat means everybody's officially signed so um i think
i think it would it would serve everyone to do a little bit of backstory
in terms of why like why would you even start something like this right
because you're like i'm already killing it on facebook i'm killing on
tick-tock i've got youtube guides going etc i will say that

3 00:02:00.000 --\> 00:03:00.000 i'll tell you why i started which will
probably lead into the second half of this story which is what um i i
told taki was like i want you to talk about this and i was like i really
want to talk about this and he was like okay well how about we talk
about my thing first and then we start with your thing yeah so um uh two
years ago legal and i uh you know we were we were you know we at that
time only had two businesses we had gym launch and prestige labs one is
the supplement company one is a gym licensing company and the company at
that time was doing about a million a week and we just finished our best
month ever and we're walking outside and she looks at me and she's like
i don't do this anymore she's like let's shut it down and i was like
well uh okay uh maybe um let's you know let's see if we can get anything
for this right so i just immediately was like i just agreed i was cool i
was in tons of pain as an entrepreneur just you know doing all the
things and um anyways i called up a friend of mine who was in the space
and he was an investment banker he had sold similar companies and i was
like hey these are our numbers like what do you think we get for this

4 00:03:00.000 --\> 00:04:00.000 and he was like holy he's like you get
like 250 million if you just finish the next 12 months at this rate and
i was like 250 million with an m he was like yeah you did 17 million
profit your second year like yes i can yes we could do that so look at
layla i was like well you got 12 months in and she was like i got 12
months for 250. i was like okay let's do this right and so that began
what became a two and a half year journey um that eventually uh resolved
in us selling the business and so i want to walk through kind of that
process and the first year of that was us realizing that we didn't
actually have a business we had a big guru brand right um at the end of
the day i was at the events i was the one who made the products i was
the one who did the coaching calls every week probably something that
some in a similar spot that some of you guys are in and so um the the
biggest kind of weakness was that i was inextricably linked with the
brain so that was number one number two and this is what i'm

5 00:04:00.000 --\> 00:05:00.000 going to focus on first and this i'll
hopefully tie both these stories together is that we were we were
channel dependent all right and so we were selling uh gym owners right
so business owners so we're not in like the online fitness space we're
hardcore brick and mortar the i talked to a couple of bankers a couple
private equity firms people that i knew through the network asked them
for people and i was like what do you see as the weaknesses in our
business like how can we make this better and the two big the three big
things they said were churn uh in terms of how long customers stayed
they said my name being the brand and the fact that we were channel
dependent on instagram and facebook and that was it and that was 100 of
our of our sales sales funnel and so we kind of set out to fix that and
so um i'll just talk about outbound since that was the channel that we
chose to be our next thing and it was because i could never get youtube
to work in my niche um you know if you're a little more mass i think
it's maybe i'm a it's very possible but i couldn't get it to work um we
have seen tiktok working as a side note but for today we'll talk about
outbound so

6 00:05:00.000 --\> 00:06:00.000 the outbound process takes
significantly longer than most people expect that being said it's part
of the reason that private equity and potential acquirers will value it
is because it is this sturdy machine because if tomorrow facebook ads
shut me down it doesn't matter because if i literally have a phone we
can make money like a phone which is crazy like the concept is still
foreign to me and so i want to tell you the sales numbers so that you
can have perspective in terms of how long this took so the first month
we made one sale the second month we made two sales the third month we
made four sales i like whether the and mind you this is months so you're
like 90 days in at this point you're like we've been putting effort
towards this etc right and so one of the key differences to note with
manual outbound whether you're doing cold calls cold emails cold text
whatever it doesn't matter which like the primary way of doing it we do
a combo and i'll get to that in a second um is that every aspect of the
funnel that we do

7 00:06:00.000 --\> 00:07:00.000 digitally is the same except it's
purely manual so you have human variables that contribute to every step
in the pipeline right so we did two we did four uh the next month we did
uh i think it was six or eight uh and then we jump to uh 12 and then we
jump to uh 16 and then we jump to and you'll notice that this isn't uh
quadratic so it's not exponential what you will see there is that it's
more linear in nature it's because we continue to add so our price point
is between right now it's 20 000 is the cheapest thing we sell which is
a great point bill so thank you for bringing this up if you want to do
outbound your ticket has to be at least 15 000. like the the the uni
economics don't really work i guess they do i just prefer to have lots
of margin but in theory it should be 15 times a 15k or more right and so
for us our lcv is 40 thousand dollars at current right now it's gone up
but when we started this

8 00:07:00.000 --\> 00:08:00.000 the ltd was 40k because i started this
in corona for brick and mortar gyms because we're brilliant right so if
you continue this thing out um it took so we're now we passed we're at
month 14 from when we started and now uh 14 months in uh it does about
45 sales a month which for us is roughly 60 of our sales volume so we we
we hit the halfway point and now we're a little more than half um in
that in between yeah it's probably better than me pretending to draw
i'll get to my drawing thing in a second or you'll be able to do it
better so i i wanted to set this as a precedent because i had two
different times where my leaders came to me and were like dude should we
continue to do this and i just remember looking at them and i was like
this is why no one will remember your name uh i'm kidding i didn't
actually say that um but but i was like guys as long as we're seeing
progress through the funnel we have to continue because the end goal is
i either have to own this thing for the rest of my life which is okay

9 00:08:00.000 --\> 00:09:00.000 or and i need to do it without it being
dependent on a single channel which i should do as an owner regardless
and that'll feed into the second part of the story or or we'll never
will never be able to get out of this or or exit it either way because
you have to exit right every you know we have to sell and we're either
selling it from our old self to our new self we're selling it from our
old selves to a new acquirer but either way we have to get out of it um
the channel dependency at a certain point if you're below 10 million i
don't think you need to worry about this but once you're you know once
you're at 10 million i think adding the second channel is important in
terms of the uh tactics around this understanding the organizational
chart which creates the sale and the actual process of the sale is kind
of where we should start so there are three different roles in our sales
system all right the first is we have we you know different there's sdr
bdr the whole point is that it's the cult it's the first touch point
it's the outbound person sdrs and bdrs i think we call them what do we
call them ddrs i don't remember whatever yeah

10 00:09:00.000 --\> 00:10:00.000 yeah i think we call them bdrs so and
this is an important point for everyone it's good that you leave this
this three the three lines because this is cool because there's going to
be more detail in each of them so we've got bdrs as level one level two
we've got sds which is sales development specialist these guys qualify
the leads and provide the value that the original person was promising
the third person is what we call bc so business consultants and these
are the closers right we technically have a fourth for we have another
team that does all of our ascensions um that sells the the 40k product
but this is uh and it looks like a christmas tree if you were to look at
the org chart like this right you got the base of bdrs who feed half as
many uh sds who then feed half as many uh bcs in this model if you
replace a bdr mentally with what an advertisement used to do that's
exactly how this functions the exception to this process compared to
your uh

11 00:10:00.000 --\> 00:11:00.000 inbound efforts are there's usually
one additional call typically so what we do is that you we scrape lists
off of google we have vas in the philippines enrich the data which just
means that they make sure that these are real real gym owners that have
actual facilities and these numbers work and these emails are verified
um the actual like what software they use i honestly have no idea
because the person who manages that team is too sensitive for me but
that's what they do from there our bdr team calls this list through
phone murder so phone burner is the tool we use we really like it it's
it's been exceptional i highly recommend it those bdrs are required to
make a hundred calls a day the way that we structure this is that they
get four hours to work per day all right and we purposely set it up that
way so that we could have good sales people who want to who want a
moonlight so they've got extra hours and they do call blocks

12 00:11:00.000 --\> 00:12:00.000 the other reason is because the sales
manager that i hired to build this entire team his experience was that
people cannot be productive for eight hours straight cold calling he
said if you give them eight hours of pay he's like they'll do five and a
half hours of calls he's like so you might as well do four hours of pay
and get three and a half and so that was an efficiency thing they are
still expected to make 100 calls a day from those hundred calls they are
expected to have two appointments that show now we have been doing this
a long time now and each of these steps took like each one of the things
that i just mentioned probably took two to four weeks to figure out
where do we scrape the data how do we how do we enrich it because we're
calling all these bad numbers right now that we're getting people to uh
pick up which by the way phone burner wraps it with a local area code if
you don't have that feature there's no point in using it like you need
to wrap in a little gear code or your picker braids can be all right so
from there you'll get your 100 dials you'll get 20 to pick up so it's
100 to 20 from the 20 we will have two who schedule and show i only know
the two

13 00:12:00.000 --\> 00:13:00.000 because that's the only thing we
compensate them on all right and so the expectation is that they get two
in the beginning it'll be one yes all right uh 100 to 20 to two what's
the uh dumb question what's the 20 what's the two 20 is 20 pickups so
100 dials 20 pickup hello of the 20 to pick up we get one to two uh to
to show uh and that's to show for the sds yep exactly now this is a good
thing for you guys too is that every once in a while you'll get you'll
get a savage and you'll know because they'll set five of that because if
you guys picked up the phone and do it you could set five points if
someone picked up you could probably set up right but somebody who's
newer the nice thing with the bdrs is it takes two days to ramp them up
it's not a hard position to teach yes here's the list here's the phone
say these words the phone calls are like five to ten minutes like
they're not hard to train and if you have a big repertoire of existing
calls which you will uh it's easy to just have them listen to

14 00:13:00.000 --\> 00:14:00.000 those so uh can we can i be a gym for
a second yeah oh i've never done the calls i have no idea do you have a
rough idea what they say what it's about so our our whole pitch is
basically like hey we've been calling some gyms in the area um they've
been struggling with xyz you know biggest concern one two and three and
so what we're doing is like if gyms don't exist our company doesn't
exist and so we'd like to just give you some of the stuff that's working
well for them is that okay this is from our private client thing which
normally we charge for but we just want to help jim's out cool okay so
what i'll do is i'll set you up with an appointment uh with sean
tomorrow and he'll run through each of these systems for your gym uh so
that you can insert dream outcome that you want which is get more leads
make more sales charge more for it yeah awesome okay that's super
helpful yeah and the bdrs will typically uh if they're good they'll look
up the gym before they make the call um and so they can be like hey saw
that you posted that thing yeah i'm calling you know from gymlodge don't
worry like just want to help you guys out we're talking a lot of gyms in

15 00:14:00.000 --\> 00:15:00.000 the area like tonality matters right
like that's the stuff that the manager will teach them um but it's like
this is a good well play for us it's like we just wanna help you out
we're gonna give you some stuff no no strings attached they say cool and
then they show up for the sds right now getting getting them to show for
the sds it's like you got to get them to show sooner we need to make
sure that the thing that you were giving them they truly perceive is
valuable and this is probably one of the biggest things that i can that
i can if i can this one took us longer to figure out is and i don't
think like lead magnets and stuff like that is valuable like it's got to
be like it has to be something that people really want in your space so
even if it's something that's unscalable do it unscalable and then
figure out a system to scale it once you get the um once you get the
flow going right because in the beginning you're gonna have one or two
callers it's not going to be a ton of volume i promise you um and then
you'll you'll be able to figure out what's the thing that gets them to
show up that they really want right can you get on i mean back in yes
sorry dude can you give us an

16 00:15:00.000 --\> 00:16:00.000 example of what a valuable not lead
magnet useful thing might be i think we walk them through uh how to set
up their sales room and the scripting that they use that that we get you
know double the amount of people who sign up for whatever so it's a
really valuable thing right yeah and then it's like yeah you'll walk him
through he can show you around blah blah blah blah and then amazing yeah
the cool thing and they can sell the benefits like if you had twice as
many people signed up and nothing else changed in your life would that
be cool cool all right he's going to show you how we do it because this
is what the top one percent of gyms are doing we should help you out
okay loving the script we just want to help you out high valuable thing
old school telemarketing rob nixon you love this sharan says so once we
uh once we get them to the sds the sds's full requirement um is that
they provide value crazy as i know is that you actually deliver the
thing that they think is really cool now here's the key point is that we
want to show expertise so the sds for us almost exclusively is
ex-clients now we may be

17 00:16:00.000 --\> 00:17:00.000 in a situation where you know our
clients are able to do that like you have to show some domain expertise
especially around this thing and the idea is if we can show a couple of
like really in-depth nuggets that are like i didn't think about that
while they're going through the process they're like these guys know
what they're talking about and so what happens is we we terminate the uh
the the value delivery and we purposely leave about 15 minutes at the
end you know of dead time that we would transition to getting them set
up on another call how long is this call i think it's 45. so it's 30 to
do the thing 15 to set the next uh deal perfect the the sds is like hey
you know i couldn't can i can i switch hats for a second i know i'm just
here to help you out but and we purposely make that to change the the
frame right we're trying to make a little little frame shift which is
like i couldn't help it here when you were saying some of these things i
couldn't like this this stood out to me this stood out to me this have
you thought about these things because honestly i just showed you this
little thing but that's like one percent

18 00:17:00.000 --\> 00:18:00.000 of actually the amount of juice you
could squeeze at your gym because like if we just did the thing that we
just talked about you double your business but like what about orders of
magnitude what if we can get to like 5x the business because right now
you're running 10 margins and if we can get you to 35 we just three and
a half extra take home income only by changing the way you price would
that be valuable okay cool so do you know what we do because at this
point we haven't talked about us at all so think about it first call all
about them value second call providing value second half of that call
couldn't help but xyz i don't normally do this blah blah do you know
what we actually do and they're like no i was like oh shoot i i feel so
stupid yeah so we literally help people just like you fix the thing that
you just said you want with the thing you know by overcoming your
biggest insecurity and fear and they're like oh my god that's awesome
it's like you know we actually do this 100 gyms a month like we can we
can walk like this is our bread and butter i didn't know you actually
needed this i just wanted to provide this for you to help you out oh wow
well okay

19 00:18:00.000 --\> 00:19:00.000 let me see here hold on let me check
with one of the one of our guys you got 15 minutes okay cool we're good
um you're a business owner why don't we see if we can um uh set this up
for you right now right let's be efficient with your time hold on one
second so then we call the closer yeah we call the closer live and then
they have a dialogue that's scripted but it's speaker phones yeah the
person who's on zoom right now doesn't know that this conversation is
scripted but they can hear both sides and this guy's like dude i'm super
busy i got so many gyms i got to talk to um i got a hard stop of 15. i
can maybe hop on um okay no this guy's really awesome he's a qualified
gym no he's legit he's big enough for us okay okay you got to make sure
he's the right size and that he's got the that he understands what we do
oh yeah no no it's all good right okay cool then i got i can hop on for
15 minutes guy hops into the zoom makes the introduction and the goal
here is not to sell them the goal is just to connect them and build
rapport that's all it is because we could not get the s and this took us

20 00:19:00.000 --\> 00:20:00.000 like two months to figure out we could
not get the sds to show for the close calls like those the qualified
appointments we couldn't get them they would set it but they wouldn't
show up and so we tried doing three-way text we tried like we tried a
bunch of things but if you do the face-to-face where they hop on the
call then they're like yeah perfect well i gotta go in five but i've got
you down for tomorrow at four we're good to go and rock and roll right
and just to be clear like this is no longer us giving you thing i'm
gonna explain how our services work our pricing and see if it's a good
fit right and so they clearly set the expectation that this is a sales
call and that i will be trying to close you and we're very clear about
that yeah and it's cool because we just had two calls we provided value
at this point we transitioned they show up the next day and it's and
it's just like your inbound closing dude so here's the advantage to this
there's there's so much more so here's the advantage to this model so
four callers sorry sorry uh uh if you're looking at appointments right
yep

21 00:20:00.000 --\> 00:21:00.000 for us we close uh 10 of of scheduled
sds so if there's two of these right two of those we closed ten percent
of those of showed uh set calls we closed ten percent so we closed point
two uh in that example right yeah exactly and so for us the cost uh to
acquire a customer from an advertising i'll use cold calling as the
advertising here is they get they get uh they get 50 bucks for every
show so it's 500 right so it's 500 bucks in in bdrs per close which for
a 40 000 ltv is pretty cool and so that works out pretty well for us and
so the beautiful part about this model is that it takes so the downsides
are the upsides with this it takes a long time to build and it's and it
also is impossible to break yes and i can tell you i sleep so much

22 00:21:00.000 --\> 00:22:00.000 better as a business owner knowing
that no matter what happens tomorrow we're going to close deals so this
is the part that i think everyone needs to uh if you want to scroll up
on this is the this is the the more genius you'll need a fresh page so i
got you so this is a key point that is sexy as

all right um who here would love to have a sales team system a farm for
building sales people so we so my ceo uh was an ex-pro baseball player
so we use the pro baseball player analogy a lot so right there in front
of you you've and we even use that we even use the terms right so we've
got double a we've got triple a and we've got the bigs right and so
double a is the bdrs aaa is the sds's and then the biggs is like the big
leagues right and so the key point here and this is like for those of
you guys who are building 30 million like 50 like this is where this
gets interesting for everyone right is that

23 00:22:00.000 --\> 00:23:00.000 the the human resource training system
itself becomes an asset to the business because we know that when
someone works their way up from being a bdr all the way to a bc they
know how to close because these people were never spoiled with inbound
leads they got hung up on and cussed at and so you guys want to know an
interesting stat our inbound closing percentage and we were considered
pretty good at sales before this went from 20 20 to 25 to 60 yeah wow
because they were they cut their teeth at the bottom yeah they're like
this person knows who we are asked for help and wants more information
they're like for real okay and so here's here's why this is important to
titles so bdr there's four levels of bdrs you've got junior bdrs you got
associate bdrs you've got bdr and you've got

24 00:23:00.000 --\> 00:24:00.000 senior bdr and that same four step
system applies to all of the levels give me the junior junior yep
associate yeah the name and then uh was the top thing i just said um
senior yeah so think about your highest churn positions right the reason
that the positions are high churn is because they cannot see progress
people lose hope when they run out of future right i think i'd damn or
tell us that i really like that so they run out of future so what we
need to do is create yeah we need to create future for them and so it's
my belief that a salesperson has like six to eight weeks of steam in
them before they start getting disheartened and so what we did is that
we created milestones which are those qualifiers on the right where if
you hit a an objective qualifier you move up and so if as a junior it
would probably be 50 showed appointments which will take you about eight
weeks after that would be a hundred and then it and each one of these
increases and you'll know for your business it might

25 00:24:00.000 --\> 00:25:00.000 be a little different but the point is
that you want to pace it so it's about eight weeks of production between
each one now each one of these gives them a bump in title and a bump in
pay the pay bump is virtually inconsequential we go from 50 bucks to
like 55 bucks like it's not a huge deal but to them they feel like
they're making progress in both status and they have an objective
measure of their of how well they're doing now once they move their way
through this and then imagine this you're a new employee you're getting
trained up and then boom eight weeks in you get a promotion you're like
oh nice i'm doing well this is good and then they gain some steam and
then boom dude eight weeks later they're like hey i'm a full bdr you
know i mean like this is great i got another raise once they get to the
top of this ladder this is the key key nuance you don't get promoted you
get the ability to be promoted yeah this is when you get to here senior
yeah yeah once you're a senior bdr you now have the ability to be
promoted the benefit of this is it also eliminates all the hr
conversations for

26 00:25:00.000 --\> 00:26:00.000 i want more money we're like here's
the path that's it this is the career path it also helps people become
career sales people for you so if you have issues of churn for your
sales team this gives them a like this is what my career path is here's
an important point you probably heard what i said about the bdrs they do
not get paid very much they don't they're they're on target earnings if
they hit all the commissions is 40 grand yeah right now how do you
attract someone who can do this job well for forty thousand dollars you
don't you attract them because they know that the guys who win the
lottery make 200 grand a year \[Music\] and they know because they have
a clear career path in front of them that if they hit their metrics they
could get there nine to twelve months yeah so i'm like what job in the
world can you go from zero to two hundred thousand a year in nine to
twelve months with no degree here you can because we're pure meritocracy
and the numbers don't lie and so at the sds level it's the same exact
thing jumer sds uh uh

27 00:26:00.000 --\> 00:27:00.000 associate the just the word and then
senior right so we have each of these levels and there's tiny bumps in
comp for each of those and they really should just be almost uh symbolic
more than they are significant because like the title is more important
than the cash but the cash just goes okay and because you yeah yeah
exactly you honestly you could probably get away with this without even
changing anything but i like i like to give a little something and then
they feel like there's there's some stuff ricky's got a question if
someone's level if someone's results stopped or their levels dropped yes
okay so you can go for something associate or whatever you have to you
have to continue to earn your position if you if you drop below
qualifiers you drop down you go back to triple a just like baseball you
go back down yeah they get relegated exactly it's exactly that and the
nice thing is because of this everyone knows where they stand so it cuts
down some of the useless communication of like pay and what am i doing
and how well i'm it's like dude it's right here everybody can see it
right and it's built like this christmas tree because they see the top
closure

28 00:27:00.000 --\> 00:28:00.000 and they see their checks they're like
that could be me right they know they get they're counting the weeks
until they can get there now when we start scaling because we add more
bdrs it trickles up the tree and we're going to need another uh closer
and so we look at the guys who are who are qualified to be promoted and
we pick the one that we think is the best fit and they get bumped they
get bumped up to the bigs and then they and then it's it's tried out
like they've got two weeks to show us if they can close if they can't
close in two weeks they drop back down they get 10 deals everyone's
curious you get 10 deals to try you don't close one out of 10 you're out
realistically should close more but their first 10 they got to close
them yep and the reasoning behind that is i've i've run and trained and
scaled a lot of sales teams i have yet to find a killer who doesn't
close in the first two weeks yeah not once yeah tons of guys who start
hot and then fizzle but no one who starts cold and then gets good what
are your uh qualifiers for sds and well bc's clearly say you know deals
done

29 00:28:00.000 --\> 00:29:00.000 sds is just bc it's it's it's
qualified shows yeah so they have to they have to qualify them and they
have to get them to show that's that's really it yep because for example
in that call if they can't get the person to be like yeah tell me more
about that and they're like nah i'm good then they missed it right and
so that's why the domain expertise for the sds like lots of really cool
little like if you have two or three really good nuggets that you always
know are awesome weave it into that conversation and they're like and
you're like dude this is like this much this is like my fingernail of
how big this is like you should like the fact that you didn't know this
it both worries me and excites me for the opportunity that i think you
have in front of you and honestly i'm not qualified to talk about it but
this guy who's got a dick bigger than shaq and you know cured cancer by
age six and helped five thousand people just like you be better than who
you are like he can help you let me see if he's available he really
never is he's always booked let me check and then and then he does the
thing yeah i love it so we've talked about

30 00:29:00.000 --\> 00:30:00.000 uh we've talked about this we've
talked about that yeah uh bc call um my hunch is it's closer framework
yeah can you just give us like those videos yeah so yeah yeah so um we
use i i like to teach a really simple simple acronym both most you guys
on here already know how to close so you know i won't bore you with it
but yeah you could use your own or if you don't have one you could model
from this there might be something good still yeah so we make sure that
every script uh follows close receive points um it's always a
question-based framework so we like questions because people can just
like say get off into jupiter and you just ask them another question
that brings them back um each of these is kind of a milestone along the
path so c is clarify why they're there right it sounds obvious right but
it's like hey so i know you you know you wanted some help with the sales
thing i know that provided some value to you i know you talked to john
and he showed you a couple more things so like why'd you decide to take
all this time like what's what's important to you about this like why
are you not getting what you want like why did you even take the time to
show up at the spot right and then they're like well

31 00:30:00.000 --\> 00:31:00.000 and they're like well i wanted more
information it's like you just get information all day you're trying to
solve something with the information you know because that would be that
would be a smoke screen right like right so as soon as we get it then we
nail them down and we label it which is l so it's like okay so i hear
what you're saying this is the reason you show up for the call so i just
want to be clear that if we achieve this outcome for you you would be
happy right you would be like you guys rock i love you awesome you can
imagine that okay great okay so you've wanted this so we go to o which
is overview your past pain right we call this the pain cycle so we're
like okay so you've wanted this for however long and what have you done
so far to try because you seem like a pretty you know well-to-do person
you seem like you've got some work ethic so i'm sure this isn't the
first thing you know first phone call you've hopped on so like what have
you done so far they go through it we said got it how'd that work for
you what was good what was bad whenever they say something good we say
totally and we agree with it if they say something was bad we're like oh
that's terrible and we disagree unless there's a limiting belief that we
need to pop before we get into the close yep then we go right back to
the beginning we say what else have you done and we keep going until
there's nothing left or

32 00:31:00.000 --\> 00:32:00.000 like god i can totally understand why
you'd be frustrated at this point because it seems like you've done a
lot so i feel like you've got a lot of pieces because the goal here is
to make them feel like they're six inches away and they need one link to
be successful totally right yeah dude you've got all these right things
in place you're so close i mean gosh i feel like like you've got you're
this close to hitting your goal so you've done all this stuff this is
what you want this is why you're here do you want to hear like i think
you'd be a good fit for the program how it works and they say yes we get
permission and then we go into s which is sell the vacation so the
reason we call cell vacation is that a lot of most people here already
know this but a lot of sales people will sell your program right which
is the plane flight they're selling tsa airbags take your shoes off
weigh your mass get vaccinated don't get vaccinated you know sit next to
the person who fires you on the plane you're gonna get terrible peanuts
all of that and they're like yeah but then you're gonna get them out and
people were like it's like you gotta sell them out you gotta be talking
about the trees and the wind and what it's gonna be like to feel and
experience that the status increase they will have amongst their peers
as a result of this this decision and they're

33 00:32:00.000 --\> 00:33:00.000 like got it okay and when we do the
solid vacation we typically will limit it to three main points and i
think it's just because human attention span isn't that good so you
probably do tons of stuff we do tons of stuff we only talk about three
things right talk about get more customers how to make it worth more how
to get them buy more times that's it right and these are the things that
we're gonna help them do and we give a relevant analogy to those things
so uh you know we just you want to have a quick anecdote that's 30
seconds or less so if i was selling a a coaching program for whatever
accountability might be one of my three things and i'd be like okay well
and this would tie to whatever the thing they struggled with in the past
it's like you know i signed for stuff but i didn't really get it going i
was struggling to like do it whatever like totally understand it's
reasonable what do they do to hold you down when they're like well
nothing it's like well then that's not your fault they didn't hold you
accountable of course you weren't successful that's not that's not you
right so let me ask you a question when you were a kid did you uh did
you love brushing your teeth tonight and they were like no you're like
did you go like oh mom you know you dragged me out of bed you

34 00:33:00.000 --\> 00:34:00.000 brushed your teeth right and they kept
doing that over and over every night you got to keep doing that doing
that do you brush your teeth now as an adult they're like well i mean
yeah not a disgusting you're like yeah so what that was an example of is
you could have external accountability that turned into internal
motivation and that's exactly what we're going to do with you here in
this program does that make sense great we don't talk about zoom calls
we don't talk about support we don't talk about our like don't talk
about that because that doesn't matter they just want to know that
something external is going to get them to do something internal forever
so we give them an anecdote about that and so this is important because
this is the only thing the sales guys have to memorize besides obstacle
overcomes the rest of this is is questions that they can always refer
back to all right so for ramping up sales guys faster question-based
framework not scripting this is just in my experience it's easier to
teach people i i haven't found in my experience the super scripted stuff
is best for like 20 minutes super high transactional sales like 200
sales and less but that's probably not what anyone here is selling so
for everyone else question based framework kind of a diagnostic approach
we follow this e is explaining with our

35 00:34:00.000 --\> 00:35:00.000 concerns which is like got it this is
the thing so that makes sense would you be would you be opposed to
moving forward today because it sounds like a good fit um then they're
like well i wouldn't be a pleasure before today you're like great and if
for some reason they say yes what we do is we do the exact same thing
every time which was we make some sort of concession which is a bonus
and then we say fair enough because all we're doing is concession
reciprocity fair enough and people don't like to feel like they're not
being fair it's a very human thing is reciprocity's super deep in us and
so if someone's like i don't know if i can do this like how about i
throw this in yeah three times like okay it's got to be fair enough by
now right and so we explain with our concerns which you guys probably
already know you've got spouse slash decision maker you've got price and
you've got uh delay which is i need to think about it i need more
information i got to sleep on it whatever and so for each of those
rather than give you the things that we would drill our sales teams on
uh a decision maker close is going to adhere to the principles behind
getting someone to understand past agreements which is

36 00:35:00.000 --\> 00:36:00.000 does your spouse or business partner
know that you are struggling with this yes do they want you to continue
to struggle with this no why would they be against you fixing something
they already know you're struggling with and they don't want you to keep
struggling with so we're relying on the past agreements to go into the
present and then we they're like i guess you're right and then we
usually will tag in a hey sometimes you better ask for forgiveness
information fair enough right and then we will close them that would be
for a decision maker for a um for a uh if it's by the way if it's b to c
you can usually get away with uh what if they say no and honestly you'd
be i'd still blows my mind you were like i'd probably do it anyways
you're like then let's do it so you know so it's rock and roll like but
if it's if it's b to b you probably go past your grants and then uh and
then usually if you have some sort of guarantee or some sort out clause
of like three days or five days if you you know get back and your
business partners and usually we'll make a joke here hey you get back
your best partner says hey man i want you to be poor i want your kids
not to have anything i want you live in the worst neighborhoods i don't
want you to have generational wealth i want you to just pass on a spirit
of

37 00:36:00.000 --\> 00:37:00.000 poverty to all of the things that
spring you know fruit from your loins if that's if that's what your
business partner says like totally understand and we'll just tear this
up but if he's like nah man that sounds good then we'll rock and roll
right and if he does say that first thing you get have him give me a
call and i'll talk to him fair enough great there we go so decision
maker we've got price which is always anchored around value this is
usually more that you actually have to close on the sales guys not the
prospects i'm gonna be really real with you we don't drill price stuff
that much we drill the sales team on their conviction so has anyone here
ever had like a client event and had all these people there and get
testimonials and like your sales team was there yesterday right well
i'll bet you for the next couple weeks your closing percentage is going
to be sky high i could tell you that when i had my brick and mortar gyms
i would do weigh-out days which is like when challenges and stuff would
end and people would be losing weight and crying and all that stuff i
would stack as many sales appointments as i possibly could while the
layouts were happening because my sales team was just watching people

38 00:37:00.000 --\> 00:38:00.000 just hit their goal and hit their goal
and they're like dude just sign up like they would even go through a
pitch they're like i mean what do you have that like just sign up like
it yeah and they reeked of conviction and the funniest thing in the
world for everybody here is like understanding the theory behind sales
is that you have a person who has conviction and then you have another
person who has no conviction and everyone knows that sales is a
transference of conviction right it's a transference of belief and the
bridge of that is trust right and so the real intention is that we must
make sure that a salesperson actually believes and you'd be amazed at
how many times they don't really believe in the product yeah and one of
the things that is important to understand is it's not a binary it's not
do my sales guys believe in my product yes it is how much do they
believe in my product hey alex yeah this is epic okay you know what i
love uh i said i'd like you to talk about this and you said no i want to
talk about that and i said well let's do both you've done a really good
job of doing what i wanted to talk about so um i like talking about
sales no i get it uh in a

39 00:38:00.000 --\> 00:39:00.000 minute what i'd love to do let's just
do the third objection to kind of close the triangle here and then let's
do a quick q a and then let's talk about scaling and selling is that
cool yeah um so last ones uh i need to think about it and so for most
people they don't know how to make a good decision they're afraid of
making a mistake and so we like to be as direct as possible which is
like let's toss best best case worst case this is what happens this is
what happens because tell me what your deepest darkest fear is right is
that i take your money and xyz that you think is gonna happen is it
gonna happen but not only that let's be real your husband thinks you're
a failure because you spent money again right your friends are like oh
here she is again you know or here he is making another business program
thinking he's gonna make money right that's what the real pain is right
it's not the money i mean sure but the thing is that the money's going
to come back right because you're not going to go homeless and even if
you do go homeless i've got guys who've living outside my building for
25 years not starving still good so you really have nothing to worry
about right but the real thing here is that we need to make this
decision so do you know how to make the we have a decision making
framework here can we can i share it

40 00:39:00.000 --\> 00:40:00.000 with you sure so first question yes or
no do you think that we can help you solve this problem yes cool do you
like me or do you want to work with us as a company yes cool do you have
access to the amount of money that is required to start yes or no if
it's yes yes yes let's rock and roll because the end of the day you
don't need more time you need more information to make a decision and
i'm your source of information and i can do this all day feels like
you've done this once or twice this is i'm making the summers ago 100 uh
okay sheila just wants to know the r in closer is just reinforce their
decision that's a great one so close was actually my my acronym for like
two years when i was teaching and then after really looking at it as the
beginning of the customer journey yeah uh we transitioned to having
instead of a handoff it is a handshake between sales and customer
success and so the point here is that the moment they close the moment
the card goes through they're gonna have immediate remorse and so our
goal is to totally

41 00:40:00.000 --\> 00:41:00.000 reinforce the decision personalize
video from the next person be like hey just got off the phones john i
hear it and this is an important point from an operational standpoint
it's like hey i heard you're trying to retire your wife i think that's
amazing i heard that you were trying to get to ten thousand dollars a
month i think you're gonna blow that away you're gonna do such a good
job so just to give you a heads up tomorrow it's me tammy i forgot to
introduce myself and we're gonna be walking through xyz so that we can
help you get your your wife retired as fast as possible cool really
excited to see you i sent you an email with all the details too see you
tomorrow right and so now they're like okay this is a legit company i
just got you know i just got off the phone you know the phone thing and
an hour later i get this thing i'm like okay this is cool i feel good
about this decision and that's what we want them to think i feel good
about this decision and we're like great and then it decreases the the
the cold feet and walkouts and backups and all that good job tammy i'd
love to know one thing you learned one thing you loved any follow-up
questions let's do it right now and then we're going to switch gears so
one thing you want to kind of nugget you stole and any questions you've
got lots of exploding head emojis uh what's the comp

42 00:41:00.000 --\> 00:42:00.000 at each level let's scroll up here for
a second i wouldn't i wouldn't give you hard and fast what i'll give you
is ote which is on target earnings cool uh and that's what that's also
what we present to the sales guys so this is the number of opportunities
if you're getting if you're doing 100 the nice thing is that here's the
cool thing with outbound is that it's reliable ads you've got some days
you've got more somebody's got less maybe this campaign maybe it's not
outbound it starts with a constant you make 100 calls yeah and
everything after that is is just formula right 100 calls means means we
should get two people to show two people show we should get uh five of
those iterations to get one deal and so forth and so if you're getting
this many appointments per week this is relatively the amount that you
should be closing by percentage right if you close less than this so if
somebody's closing let's say 25 or less they get up they get bumped down
right and so for us the the guys who are the bigs they make the on the
on the like if they're doing great they make like 225 yeah the target
earnings range for each that's probably yeah 150 to say 120 to

43 00:42:00.000 --\> 00:43:00.000 220. is the range there for for aaa or
at the sds they make 60-ish and that's a much tighter range probably
like 55 to 70 you know i mean like but probably i don't think anyone
said this it's like 55 to 65 it's a 10k range and then uh and then the
uh the bdrs are like around 40 grand helpful so you can see how they're
shooting for that yeah what they are yeah see it and what they're like
how long does it take the answer is right in front of them on the right
that's how all it takes yeah what i love about this is you're thinking
in uh quick achievable win levels and um maria just said love eight
weeks probably the same for our clients something to think about yeah uh
jackson says where are you finding these people uh the homeless guys out
the back that he talked about before yeah candidly uh one of the big
bombings in the business was finding that and i found out it took me i
made a whole youtube video about this but uh basically my team was
screening way too hard um

44 00:43:00.000 --\> 00:44:00.000 for bdrs and my sales manager didn't
know and so we're like no no just let them all in and we'll see how they
do because the cost because it takes two days to ramp them up and we
don't really have any cost per lead yeah i mean besides the data
scraping which is not that hard and so we just let them prove themselves
because it doesn't really cost us anything to have them work leads yeah
love it uh yuri's asking did you consider cold outbound email instead of
called calls yeah i'm pretty sure phone burner has a follow-up email uh
and text thing that goes with it but i'll be honest with you guys like
the phones are the thing that that drive it 75 of it comes from the
phones yeah i love it okay so alex when i said hey could you do a thing
about a thing and you said yes uh you said i'd rather talk about what i
thought i would share with you guys if that's okay with you is a couple
of the kind of key lessons i've learned in this process so i started
this process because i was in a tremendous amount of pain right and i
and i i ran out of future i couldn't see uh a world where i'd want to
continue to do this for the long haul

45 00:44:00.000 --\> 00:45:00.000 right and i think i heard this from
sharon and i love it is that operators get burned out business owners
get rich and i was still ceo and that was the thing is that as much as i
felt like i wasn't doing anything now two years ago i was 100 doing
things but this year as we transitioned out i went from just making
decisions to not really make just to just reviewing decisions which is
kind of what we're doing now and so the reason that we got the offers
that we did in my opinion um is because we fixed the house and when you
fix the house that you're trying to sell does anyone ever try to sell a
house and like you fix all the things that they say are wrong with it
and then you look at the astral like why are we leaving this place this
place is awesome have you ever done that yeah well the the biggest
lesson that i feel like i've taken from this and i have i have two pages
of lessons that i took i documented through this process um is that you
only have one outcome you have to sell the business but it doesn't mean
you have to have another acquirer you can sell the business from
yourself to yourself yeah your own self to your

46 00:45:00.000 --\> 00:46:00.000 new self and i also got a greater
understanding of how the debt system works so if someone's going to buy
your business for a big amount of money they're not actually going to
pay for your business right they're going to put 30 down like you do for
a house and then they're going to get a bank to finance the rest right
you have a house that you own 100 in cash you can go to the bank and get
the 70 mortgage on your house and just take the money in the u.s at
least tax-free jackson's nodding he would know the aussie so he's
nodding he's like yes affirmative and so the point is is that in my mind
two and a half years ago the only possible outcome that i could do to
get out of pain was to sell and the thing that i had to sell was
unsellable and so the thing that we build has to be sellable that's just
my conclusion it has to be sellable or you'll eventually burn out and so
if you make it sellable then it actually sits as an asset on your
personal net worth balance sheet and it continues to

47 00:46:00.000 --\> 00:47:00.000 provide cash flow um i had so many
stories that i would you know that like the story of the sale for me was
like i need a big sale to to be legit some of you guys may laugh at that
you're like you're doing 85 million here but in my head i was like well
and then i had a friend who's like dude you've already sold six
companies i was like yeah but they weren't like as big as this he's like
you really think that matters i was like huh and then it was like what
about the what about the story of of the money right about the increase
in net worth well here's here's an interesting one for you say you have
100 million dollar sale right everyone talks about it it's so amazing
well most of the times it's not 100 million dollars right what it is is
they'll probably give you you know 60 million up front and then you'll
have a 10 million dollar seller note that you finance for five years and
then you'll have uh you'll have a earn out right for another 20 million
uh that if you hit x y and z over the next year or two right or earn
outs can

48 00:47:00.000 --\> 00:48:00.000 be as long as they want right um and
uh you're going to roll another 10 in equity right and so all of a
sudden this 100 becomes sixty but wait there's more so now we've got
sixty million well you probably have some bonuses that you wanna give to
your staff you're gonna have a broker that you'll probably have to pay
three or four percent to so let's let's do it so four percent of 60 now
we're down to 57 right uh and i'll just wrap in some of the bonuses on
top of that uh depending on how your your equity structure if you're 100
whatever then you have your capital gains tax you have an escrow fee so
capital gains for us in the states at least is 20. so now we have 20 off
of the you know let's say 55 after the escrow that would be actually the
size that big it'd probably be more like 50 after escrow uh 20 that
would be 40 million so now your 100 million dollar sale is 40 million
bucks it's not as cool right at least for me like hearing how how it
would break down and so i've tried to be as transparent as possible
because like

49 00:48:00.000 --\> 00:49:00.000 there's the there's the story of the
sale that we tell ourselves and there's the reality of the sale because
here's the second part of it i talked about the money side but what
about the attention headspace energy side because that was another story
i was like well if i sell then i'll be able to go do stuff that i really
you know i'll get all this attention back and all the stuff right well
one the amount of stuff they want you to do is gonna be directly
proportional how much stuff you're doing now so if you want to sell the
business you got to do it in a way that you're not doing anything and if
you're not doing anything then why sell the business yeah and so for me
i told myself the story but the reality was they wanted me to show up
for quarterlies and be available for the occasional uh like strategic
like hey can we touch base about something which is exactly what i
currently do yeah so then it's no longer so it's not a question of money
because if you're selling for that amount of money you've probably been
making money for a while right so it's not going to materially change
your net worth unless you're in software in which case it's a different
you know game but for most of us here who sell service businesses of
some kind you're probably pretty high margin

50 00:49:00.000 --\> 00:50:00.000 pretty high cash flow and you probably
have a decent amount of money after you get this kind of downstream
impact of what's actually going to be added to your net worth then the
question is what am i going to take with the 40 million and buy that's
going to create me because if you're selling for 100 you're probably
doing 15 million in in profit right so what am i going to go buy with 40
million that i can get 15 million dollars of profit every year from that
i don't have to do anything for right and so i had the story of what the
sale was going to mean to me in terms of my reputation which was
completely living in other people's eyes which was useless and
irrelevant and not true i had the story of money which is this is going
to be a big change in my life but when i looked at all the numbers i was
like this will change nothing about my life in no way like nothing
because unless you get into another stratosphere of wealth yep like it
nothing's gonna change right so then it goes into the energy and
headspace i was like okay well i'm doing the same thing before as i am
now and so thing by thing there's the story of what we think it is
versus the reality of what it is and so um

51 00:50:00.000 --\> 00:51:00.000 the the biggest thing that i feel like
uh has been my biggest takeaway from this is that when i've looked at
and i have a big thing on private equity lessons that are really cool
too but it's probably running out of time um i learned from the guy who
lives above me so the guy literally lives right here he does 3.8 billion
a year in in revenue he owns his company 100 outright and he does 26 net
margins privately held that means he took home 935 million dollars in
income last year the secret day of success he said i've been doing the
same thing for 40 years 40 years and so what i feel like i i continue to
witness is that the wealthiest people in the world and i'm i'm stealing
this from charon because they buy and they build and then they refinance
so you don't need to sell and the only reason that you would sell is
because you think the party's over you think that this thing is no
longer going to be a thing anymore long term yeah but if i make a bet
that gyms are going to be here in 10 years

52 00:51:00.000 --\> 00:52:00.000 which i do think gyms are going to be
here in 10 years right or your business whatever the spaces is going to
be there in 10 years well then what's the reason for selling so and i
got this from my closest friend because he was like what problem are you
solving and i was like well when i started this process i was in a ton
of pain he was like okay are you paying now and i was like well not
really he's like well what do you think is gonna happen post sale he's
like it's he's like the sale he's like match the conditions he's like
what does your life look like after the sale tactically yeah is there a
way that we can make your your life look this way before the sale and
keep the damn thing yeah and so then we started looking at it from can
we match the conditions and so if you can do that then you we build the
thing instead of a really high-paying ceo job we now have an asset that
is sellable and can can carry debt on our balance sheet income tax-free
that we can then use to go invest in the other stuff that we want and as
the company grows it pays off the debt and you have the thing that
you're getting the debt who's continuing to

53 00:52:00.000 --\> 00:53:00.000 grow as well if that's what you want
all right dude i got i got two thoughts in my head i just want to throw
them to you and you can do something with them or not yeah two things i
see happen a lot in boardroom is people hit their you know their number
it's not 100 million often but it's the you know like it's like the
dream they've now hit it and they're like well what the hell do i do now
um so that's a really common thing and then the other thing uh talking
about exit not exit is really interesting but one of the things you've
done to um to get exit a ball is to take the name off the door yeah
totally so the name off the door i just want to prepare everyone is like
it's like a three year process so it takes a lot more time than you
think it will this is i would just share the things that work for us all
right so uh layla's just said we have no youtube strategy honestly alex
just likes making videos in as a great teacher yes thank you layla for
i'm packing the strategy yep that is the strategy um

54 00:53:00.000 --\> 00:54:00.000 so first thing is we edified customers
uh into specialists and the key nuance here is that we don't make
generalists because generalist means they can replace you and you
actually either have the problem of having another face that's not yours
or you have the risk of that face walking but either way it's either a
face that doesn't make it sellable which is the same weakness or you
have a face that becomes a threat to the business right either way it's
not good and so we make siloed experts which we call subject matter
experts that specialize in a specific thing so you might have somebody
who's really good at sales somebody who's really good at lead nurture
somebody's really good at ad buying somebody's really good at pages
somebody whatever the thing is so that you can have people tag those
clients and they become kind of the the customer support but like with
special specialization beyond that you take some of the better customers
you have who want to exit their business and just love your brand and
you say hey would it be cool if all you did was talk about this all day
and they're like dude this is all i want to talk about anyone like i
don't like dancing anymore i want to talk about dance right um and what
if we just helped you just help our clients better and then they become
the head of product right because if you

55 00:54:00.000 --\> 00:55:00.000 think about the things that we're
probably doing you're probably an expert of some sort so you need to
replace the product expertise so first you got to get a person then you
get the process the process around this is called the beta process every
single private equity firm that we talked to loved this process so you
can write it down i actually learned this from management consulting the
way that it works is that if we need to solve a problem so there's
always a problem to be solved right all these ask your customers there's
plenty of problems right so ask them these are uh problems your clients
have problems is that what you're talking about yeah yes and then they
can upvote the ones that are the most salient to them you take the ones
that are the most that are that are plaguing the most people and then
you say hey who here is doing really well with this and then you get you
draw uh draw a line and ideally it's depending on the client size for us
we look at the top one percent so we've got a thousand locations top one
percent is ten people so i want a group of 10 to 20 that are in the top
echelon so cut the percentage wherever you want to get 10 to 20. and
then we do a round table and so the benefit to them is that they get to
kind of get a bonus mastermind with

56 00:55:00.000 --\> 00:56:00.000 you for free in exchange for sharing
all their secrets yep what we do then and this is the qualitative
process is that you write down everything that each of them says step
two is that you reorganize the notes and find the common commonalities
and the point here is not to do all of the things they do but to do the
things that all of them do and so a lot like the list that i had for
reducing churn was like 180 items between all the guys but the one thing
that the five things that all of them did is the only five that i took
to make the solution and so once you have that you consolidate the
solution and then you take the guys who are the bottom 10 and some
middle guys and you say hey i have now productized the solution and you
deliver it the same way you would to your customers which is through a
portal involved well you don't do anything actually because if you did
then it would up the results you say i need you to go through this and
we're going to report back in 30 days right you can sit you know have a
cadence with them you know once or twice a week whatever you then
measure the results here's what's cool about this one is if it works you
just have something that delivers tons of value and you didn't have to
generate it it process generated it

57 00:56:00.000 --\> 00:57:00.000 which means it's not you you're not
the guru you're not the face a process drives the innovation yep the
second thing is if it doesn't work you still report it because every
entrepreneur would love to know failed tests yeah i would love to know
if this headline worked at this one even if it didn't i want to know
because then i don't want to try it and so it still provides value even
if it doesn't work because you proved it didn't work so i just want to
share that with you because if some of you guys do experiments and they
didn't work share them it's valuable so that's on the product side right
on the the marketing side we slowly introduced other people in the ads
until eventually it was just them in the ads right and then additionally
we obviously started the outbound team so that we had multiple channels
so there was like name was one issue which we solved by getting me out
of the inbound and then channel dependence was the other issue which we
solved through outbound right and so those were the you know those are
the two solutions uh on that now i want to share something that i think
is more

58 00:57:00.000 --\> 00:58:00.000 important than everything that i've
said so maybe you can unshare the the thing for a moment um when when
when i'm sharing the things that are working for the outbound team you
can't do it like you can't do it like if you get to a certain point if
you're at 10 million or 15 million like you can't do it you need other
people and you you can't hire people with the intention of training them
to do the thing it's not hey we need to build an outbound team together
it's i know that you built two outbound teams for similar type products
as me i need you to do the same thing here here's some really favorable
upside potential for you uh and i need you to build it from here and
i'll give you all the leeway in the world i'm incredibly patient as some
as long as i see progress yeah so i have very low patience if i see no
progress if i see progress you can go as long as you want as long as
we're making progress because i know we will eventually get there and so
i think that if you use that as a frame of mind that we're not looking
for people who know how to run but we're looking for people who have
already run an olympic gold and

59 00:58:00.000 --\> 00:59:00.000 want to run another one and i'm
telling you if you find the players you will be able to build something
significantly bigger and this was a breakthrough that took me way too
long to learn and it sounds stupid because it's so trite and overstated
but like you need to find champions and you got to pay him well and it
will be worth it and there's a book i don't know if layla put it in
there but there's a book called uh the motive which is a one-sit read
it's 130 pages with big text and it it fundamentally changed me as an
entrepreneur and i really think everyone should read it because you can
read it in an hour and a half and it will change the way you see
operating a business because at the end of the day it's just an assembly
of people if you want it to be a business if it's you with a thousand
helpers it's not a business it's just a really high paying job right and
so you got to get people who can do it i know it sounds stupid and it's
obvious but like that's the belief is that and i was stuck at mid 30
million for three years and i had mark ford who wrote ready fire

60 00:59:00.000 --\> 01:00:00.000 aim write his book and he said that
the thing that you get stuck at thirty and i like skip to the chapter
where he had 30 million as a breakdown and he said if you're stuck here
it's because you're the only one that's you're the juju you're the steam
you're the fuel behind the growth of this thing but at a certain point
there's only so much that one person can push it you get the fourth
level of infrastructure in the business and they don't know who you are
they don't know your vision they don't know how you do things because
they're so far they're so far three levels you're okay fourth it's an
organization it's it's beyond tribe right um and so i was going
somewhere with that uh when i hit when we hit 30 and i read the book he
was like you need to find other people who can own their own p l's and
become entrepreneurs within your company and what happens is it becomes
a shift from being a business to being a conglomeration and so if you
think about amazon they're not amazon's not a business right it's a
business of businesses it's a collection of businesses that serve a
purpose right and so

61 01:00:00.000 --\> 01:01:00.000 i had to shift my thinking in terms of
how mine worked to we have a number of business units that operate off
of one shared spoke of shared services we've got it hr legal finance all
in the middle and then we've got profit drivers that drive revenue
across the business units and the people who drive those are responsible
and compensated based on the growth of their business line or their
product loan and so then you get people who can start making 300 grand
400 grand a year 500 grand a year if they crush it and they should
because otherwise they'll just start their own version of your business
and so if you can give them that you can attract the entrepreneurs um
who want to drive growth are really good operators who just have a
little bit less risk uh you know tolerance yeah is that big so that's
the so that that's that really goes for any of them so like outbound if
you're going outbound or you're like man no one can never market like me
there's somebody who's better than you yeah that totally is it's it it's
bad for the ego and good for the business um

62 01:01:00.000 --\> 01:02:00.000 so dude can we talk for a minute about
um about i don't know what the word post exit post not even post exit
but like post i've hit my number what yeah i'm bored what's my new role
uh you know who am i what do i do that's stuff just for a couple minutes
yes so i made a video on youtube about this how passive income was
overrated and uh it was because we had completely replaced ourselves in
the business and it was still making a lot of money and uh and then we
started acquiring other pieces of businesses and whatnot and those have
continued to cash flow and i was like what do we do like we have nothing
to do all day and so i think what i messed up is that i continue to
pursue freedom right because that's what all of us here at least i did
is freedom was the goal right um and i thought that it was freedom from
work when when in reality what i should have done was freedom to do
things that i wanted um and for me i want to work and it took me a year
to give myself permission to work again

63 01:02:00.000 --\> 01:03:00.000 because i always thought that if the
business relied on me it wasn't a business and i was doing something
wrong and that was a story that i was telling myself and i love working
and i think that if all of us achieve the levels that we have right now
it's because we love working we love doing this and we still have this
dream of this exit in our minds but it's not it's i'm just it's it's a
it's a farce it's not true and you wake up the next day and all you do
is you know and there's just an another blunk of money there and you're
like well i mean you can only go out to so many nice dinners and nice
restaurants and nice shows at some point you're like i gotta do some and
so like i would say that you don't need to go through it because i spent
the last months nine months doing nothing and being bored out of my mind
and wondering why i even existed and then it just eventually gave myself
permission to just do the things that i like doing and it just happens
to be that it makes money great and for me and again i got this from
sharon because it's been it was um so good but like the things that
light me up are buying and building is it's

64 01:03:00.000 --\> 01:04:00.000 expansion and so you know if we end up
selling i don't know they gave us the offer this morning maybe maybe not
um but i do know that whatever it is it's going to be the decision will
be aligned with what i am building next yeah and if i think that keeping
this will help me build that better faster stronger then i will keep it
if i don't think that and i'll tell you this is when i was contemplating
the sale i i could not see past the decision because it was an unmade
decision it was like black it was like i lost my vision i couldn't see
past this unmade decision because it was this variable this huge fork in
the road in my life i immediately and i you not immediately knew what we
needed to do to grow the other company to 30 million in ebitda and what
we're going to do for the new company because i'm still building the
next company no matter what um and so i think that the season that i
just went through and i feel like it took me two and a half years um was
transitioning from ceo to owner and it took a lot longer and it was a
lot more emotionally difficult

65 01:04:00.000 --\> 01:05:00.000 a lot more emotionally difficult than
i expected why identity you know um i mean layla had a conversation with
our team yesterday like it's so nice that you guys are gone i tell that
story because it was really good did you say that to them or they said
that to you no they said it to us they're like i don't want to offend
you guys sorry thanks i thought it was like i'm so great not having you
guys in my life sorry no i just thought it was interesting because if
you know i think both alex and i had always prided ourselves on you know
for me it was like i have to be the example i have to be working my ass
off doing more than everybody else so that they you know because they're
all a players and so i want them to see that i'm doing the same yeah and
i was talking to one of our our guys who's really stepped up and he's
one of the you know one of the highest ranked people in the company and
i check in with him once a month rather than you know the because he's
not the ceo or ceo and um i said like how can i support you how can me
and alex help you know just want to know at the end of the call he said
can i be really honest with you and i

66 01:05:00.000 --\> 01:06:00.000 was like yeah he said it's really nice
not having you guys around he's like yeah he's like you know everyone
feels so much more creative you know they have to be way more
self-reliant and all of us have just been able to step up so much more
since you guys have stepped out and so we're just growing so much as a
team we're so much stronger and i was like man like everything that you
do to get to like 90 of the finish line the last 10 requires you do the
complete opposite yeah that's fascinating so everything about every
entrepreneur every level of entrepreneurship based on my observation my
personal experience has been it's it's relinquishing control or at least
the perception of control and so you know when you're when you're at
zero to a million you're giving up can you force reset alex because
here's what i'd love to i'd love to do and i think you're going there
but i want to yeah i want a mind melt so we got this journey and we've
got the you know the zero to one and then we've got the one to what's
the next jump is it ten ten perfect

67 01:06:00.000 --\> 01:07:00.000 and i say it's like 30 to 50. it kind
of depends on the company perfect and then we'll go up from there a lot
of the people on this on this line right now are kind of in this space
and we've got some in in this space but can you just do like top three
for this for this space right here yeah to get past the million you have
to give up um everything with fulfillment so customer success customer
fulfillment right yeah exactly life fulfillment you have to keep up the
key part you're also giving up if you're going one to ten you can't sell
anymore right you need someone you need a team of people who are selling
on your behalf so it's you have to not only be able to sell you have to
teach people to sell you have to know how to recruit sales people you
have to know how to manage sales people you have to know how to send
sales people um and continue to get them uh performing right and that's
a different skill right we know how to sell how many people be like god
i close these people so easily and no one else

68 01:07:00.000 --\> 01:08:00.000 can sound like me it's like it feels
good but you're still way poorer than somebody's got 20 sales guys
closer for so like just get over it like there are people who are better
than you at closing because all they're going to do all day is close
you're still running a business yeah so you got to stop selling it's my
opinion that 10 to 10 to 30ish is you have to give up the marketing you
have you really have to get beyond that and then at going 50 plus you
know 30 to 50 plus it's like you have to give up the leading which is
difficult right and the zero to one i'm just i'll throw it in there for
fun it's like you gotta stop doing then you go to managing and then you
go to leading and then you go to decision making um and so you can say
leading and decision making decision making is above leading um that's
kind of the ultimate i would say exit is that people are making
decisions on your behalf oh my bad i got this thrown around alex would
you say for 50 plus because this is what i was thinking i was making a
presentation like this the other day and uh i think for 50 plus you go
from being the leader of the company to you lead like the one soul
leader but you're

69 01:08:00.000 --\> 01:09:00.000 actually just the resource yeah you're
a guy you're just a guy you're an advisor yeah you provide capital and
you provide connections network vendors that's what like pe does that's
what you know the big guys do yeah this is great so can i just say
something to cap this real quick is that so if you're stuck right now
you have to think what am i holding on to that i need to give up great
question and when you're giving away control i'm not saying okay well
i'm not going to be involved in sales anymore it's like no you have to
learn how to put a good leader in there who knows training systems who
knows how to recruit who knows how to hire and knows how to send you
know how to keep culture and build a team that can that can work
together right those are a lot of attributes and you know your skill is
how do you find that person because because each one of the skills begs
the next skill you have to learn how to close you got to learn how to
teach other people to close right then once you have got captioning not

70 01:09:00.000 --\> 01:10:00.000 right if you're available it then
there's there's this is you if you're managing it's one right if you're
managing a manager is two right if you're now leading business you're
leading people who have business units right it's it's three right so
and then finally you know you're you're advising and you're letting
other leaders lead directors who have managers and customers and so
right now i think that this is our fifth level of hierarchy uh within
the organizations and so they now function as assets um that produce
cash flow yeah many innovators a million percent this is so great
