https://www.youtube.com/watch?v=3P1XjUvo1b4

1 00:00:00.000 --\> 00:01:00.000 a month ago my wife and i sold our
eight-figure software company and that deal closed 30 days ago and so
what i wanted to share with you was one of the the biggest and most
profound takeaways that i had from selling that business and what we
look at when we're buying our own companies if you guys don't know who i
am i'm alex from mozzie own acquisition.com or my wife and i own
acquisition.com our portfolio does about 85 million a year in revenue
and i have nothing to sell you so what i want to talk about today is one
of the things that took me way too long to realize in looking at
creating products and ultimately you know buying and selling businesses
that that are valuable the biggest piece or biggest takeaway that i've
had in creating quote fortunes is understanding one concept it's so
simple to understand and so hard to do the key the one-way direction to
creating a fortune through business is to only sell things that people
do not stop buying i'll say it again the way to create a

2 00:01:00.000 --\> 00:02:00.000 fortune in business is to only sell
things that people do not stop buying some of you probably drink
starbucks you probably will not stop drinking starbucks some of you
drink coca-cola and will probably not stop drinking coca-cola some of
you buy apple and will probably not stop buying apple right some of you
watch netflix and will probably never stop watching netflix provided
they just continue to do what they're currently doing the thing that is
disheartening right and i'll say this because i think it's it's just
like these are the obvious things that are so obvious known does them
right simple scales fancy fails all right repeat successful actions do
the boring work like these are sayings we have in our community because
most of the success that i've had with business has has not been from
curing cancer or inventing a new technology but improving something to
the point that people want to continue to buy it and continue to pay for
it and so right now this is the thought experiment that if you're a
small business owner i would like you to do if you were to write down
the total number of people that you have

3 00:02:00.000 --\> 00:03:00.000 ever sold ever all time and you were to
tally that number up and then you were to multiply that by your current
average monthly price how much money would that be probably a lot maybe
a lot more than you currently are making the next thing to do is if that
is the amount of money that you were making how much money would you
have available for you to spend in acquiring your customers probably a
lot how convicted would you be if every customer you sold you knew you
would not lose probably vary and so i think rather than thinking about
all the many tactics and there are lots of them of making more money how
do i get more leads how do i optimize my pricing how do i sell a higher
percentage all of that stuff right those are a lot of the hand-to-hand
combat and i don't want to be mistaken here like you can become a
millionaire just learning to be okay at those things right if you just
learn how to market and sell you'll be able to make money

4 00:03:00.000 --\> 00:04:00.000 you won't be able to build a fortune
but you will be able to make money the thing is is that if you can
optimize around the single question which is what is something that i
can sell that people will never stop buying it after they start and how
do i structure the thing in such a way that the value they're getting is
so far in excess of what they're paying me that they never want to leave
that they call me when their credit card goes down to make sure that
they continue to stay and pay so right now many of you probably with
your wi-fi right if your wi-fi went out because your car didn't go
through you would probably immediately update your card and get the
wi-fi back up if your phone service went down you would immediately
update your card and get it back going if you if your netflix got
canceled you do the same thing right and that is because we value those
services far in excess of the price there is what is called a customer
surplus which means you are getting far more than what you pay for and
so you feel like you're not only getting a good deal you're getting a
crazy deal and so you never want to stop buying it because the value
exchange is so far in your favor

5 00:04:00.000 --\> 00:05:00.000 and so when i am now looking at
businesses i am seeing what the overall opportunity is that we're
pursuing and what the main value proposition is and i'm thinking to
myself so i'm just giving you the mental frameworks that i'm working
with which is how can i turn this thing that is valuable into something
that someone will never want to stop buying all right so there's a
couple of frameworks that i will that i'll walk you through this is
probably the most this is for a b2b scenario but you can probably apply
to anything many times there are especially like the e-learning space
people will sell a method which i think by the way is silly because
people will never stop they will they'll definitely buy the method and
then never need the method right which is why i prefer models to methods
right a model can have lots of methods that feed into it but a method
can only it's like a one one and done right and so ideally you want to
transition your business from a method selling business to a model
selling business because then you will have a model that can always
evolve over time franchises sell models and the marketing will change it
was groupon then it was email

6 00:05:00.000 --\> 00:06:00.000 but it was facebook ads and instagram
ads and youtube ads and all the things that have happened since right
media will change but the model will remain the same and so if the model
is something that someone used to continue to have then that's something
that they will not get rid of right now in the in the netflix video that
i made like how i crack recurring revenue there's eight c's that i look
at to make something stickier all of those things will increase the
stick but the biggest one by far is the simple customer surplus the
value discrepancy in what you sell uh sorry what you deliver and the
price that you charge for it right and most people try and cut the
prices in order to get there when in reality we should be increasing the
value so that rather like you can create a customer surplus by lowering
the price so much the thing is is there's not a lot of profit left over
and you won't have a big business and so unless you have something that
causes zero dollars to reproduce um you know like there's dropbox right
virtually zero dollars to reproduce more storage then it's very
difficult to do something like that right the idea if you want to create
a fortune is to think consistently how can i make this so that no one
stops buying and in the software

7 00:06:00.000 --\> 00:07:00.000 world which i highly recommend you look
at all the writers for business in software because software is software
as a service right sas all right now that means that all the metrics and
all the things that they have quantitatively been able to measure in
software as a service 100 applies to service because it's just software
doing the job that service is supposed to be doing and so if we can do
that right if we can if we can quantitate it in this way quantify in
this way then this is the this is the three-step process that they go
through when they're trying to create a billion-dollar unicorn company
all right and i got this from mark roberge who was the one of the one of
the early guys in uh in hubspot right i think he took them from zero to
100 million and now he's a lecturer at harvard all right this is the
process that they go through the first step is is is getting enough
promotion so that you can get customers all right he said we're not
worried about pricing we're not worried about value we need to be priced
high enough that people will care but not so high that we're trying to
maximize profit because that's not the goal of this period of time right

8 00:07:00.000 --\> 00:08:00.000 now this unfortunately is where most of
the internet marketing community stops they learn how to promote and
they think that that's how they're going to make money but that's not
you'll make some money but you won't build a fortune that way right so
the promotion period is simply to get customers all right you make sales
to get customers you're not getting making customers to get sales all
right very important distinction and so when we do that the idea is that
we're continually testing the product until we get to the point where
people don't leave and in theory we should never really leave here until
we have figured this piece out once we have figured this piece out then
we can start scaling it right and so if you're thinking about this in
sequence it's promotion which is usually zero to a million product which
is one to ten million which is where you're you're optimizing your
product so that people never want to leave they never want to stop
buying and then once you have something where the product is such that
people don't stop buying all of your marketing efforts in and of
themselves will start compounding because people won't leave and so it's
just like you've

9 00:08:00.000 --\> 00:09:00.000 got this glue and you're blowing all
this traffic at this glue and it just sticks and it just keeps and if
you never lose a customer you will literally never stop making more
money year over year think about that just like hypothetically just
think about that for a second you will never stop making money you will
never stop making more money year over year if you never lose a customer
and i think that it's just such a profound like ideology shift it's so
easy to say and so hard to do which is why most people don't want to do
it but if you're part of mozi nation and you like doing the the boring
work you like doing the things that other people are not willing to do
then these are the things these are the keys to the kingdom is creating
things that people will never stop buying and that means that you're
interviewing customers it means you're surveying them it means you're
looking at usage patterns you're looking at the things that they're
consuming you're looking at how you can increase the collateral within
your community so that people don't want to leave and we do these things
over and over and over again until we get to the point we're at one
percent two percent monthly churn at most rather than um you know 10 or
20

10 00:09:00.000 --\> 00:10:00.000 which is what most people have and if
that sounds hard of course it is but the thing is is that i guarantee
you that no one else is doing it everyone's obsessing about their stripe
account screenshots but the thing is is that the fortunes are not even
made in the follow-up the fortunes are made to never losing customers
because then you have time on your side because then over a long enough
time horizon even if you suck at marketing people will find out about
your product over a long enough time horizon and if you have a product
that people never stop using you will be able to make a tremendous
amount of money because in 20 years if you were to think about whatever
amount of sales you have right now as a small business owner you might
have been doing this for three years or five years whatever it is right
if you were to multiply this in your 20 years into your career and
you've actually been doing the same thing one it would be far more
likely that you'd have something that you would have figured out how to
make the product so good that people wouldn't wouldn't leave but also 20
years from now you'd have so many customers even if you weren't that
good at promotion that your business would be gigantic all right and so
i i think i've told this story before but i had a i had

11 00:10:00.000 --\> 00:11:00.000 a a consulting engagement that i did
years ago where somebody was selling the exact same amount of clients as
i was and they were making 300 000 a month and we were doing 4 million a
month and i think i had 100 times the profit of their company and it
wasn't because they were like we were selling the same amount of
customers it was just that we had such a better monetization view with
such a better product we were able to deliver so much more value that we
were able to grow to a much bigger size like if you sell 100 clients a
month b2b you should be able to build that into into a 100 million
dollar enterprise you have the sales velocity and so then it's just
simply and i know that's like well what about pricing over a long enough
time horizon you should still probably if you're b2b you'll probably be
at you know in a price point where you would get there if here's the big
if you don't lose customers and so i think the vast majority if there's
one message from this video it's what can we look at or reimagine within
our customer experience and the product that we deliver that will
deliver outsized returns so that we have a customer surplus which means
the amount of value provide is far excess to the price that we charge
and that doesn't matter what the price is so when someone says i charge
high ticket i think it's a

12 00:11:00.000 --\> 00:12:00.000 silly silly concept altogether right
because it really should just be high value that's the real concept
which is high value all right because what is expensive right if i said
hey i'll give you my you know my lambo for 20 grand is that a good deal
absolutely right price is what you pay value is what you get and that
discrepancy is going to be the customer surplus and so right now if i
said that to this channel hey i need the first person who wires me 20
grand right gets the lambo a lot of people would probably wire me 20
grand right because the value is clear to understand if i was selling a
house and i said hey give me you know it's a 500 000 house give it to
you for 50 grand it's a great deal most people would make that offer and
so the thing is is that that is what the business like that is where
fortunes are built is finding a way to build a house for less than fifty
thousand dollars to build a five hundred thousand dollar house build it
for ten thousand dollars build it for five thousand dollars and sell it
for fifty thousand dollars that's the game that we're trying to play
that is where fortunes are made that is where fortunes are founded that
is where you sell things that people will never stop

13 00:12:00.000 --\> 00:13:00.000 buying and that is the real key to
making more wealth and more money than you know what to do with and the
reality is it's very simple to say and very hard to do and that's why
most people will never be wealthy but you are part of mozi nation and
you are not going to be one of those people uh because we do the boring
work we do the things that people are not willing to do so that we can
have success that they have never dreamed of so anyways keep being
awesome if you enjoyed this my name is austin mosey on acquisition.com
um we do 85 million dollars in revenue and i have absolutely nothing to
sell you like i said if you like this hit the subscribe button we have a
lot more tactical videos on how to grow your business um and if you uh
if you didn't like this then i love you either way keeping awesome
because you're in the game and i will always appreciate you for that so
keep being awesome catch you soon bye
