https://www.youtube.com/watch?v=XC\_lklN9KmE

1 00:00:00.000 --\> 00:01:00.000 they're like man these guys just expect
me to sell all day and the answer is yes i wanted to make this because i
woke up with this on my mind and i think it was relevant so i was
looking through our um our weekly reports and uh i was looking at the
sales team stuff and i was looking at uh the glx stuff which is our
fulfillment side and uh i thought this was really fascinating i would
share this with you so one of the things that happens is we get a lot of
people uh who come on and they say you know we're like hey what's your
goal right now what are you trying to accomplish right and a lot of gyms
are like man if i could get 300 members that would be amazing if i get
200 members that'd be amazing i'd get 500 members that would be amazing
right and so they have these goals right and yet they don't follow the
simple math of getting there and so most times the inflow is the cap
right now there's obviously like you've probably heard if you've if
you've ever

2 00:01:00.000 --\> 00:02:00.000 followed my stuff for long enough you'd
know that i talk a lot about retention about lifetime value etc right
but at a basic level there there is at some point what i would consider
acceptable metrics right and what that means is let's say that you're uh
you know if you're in the service based business you're never going to
get your churn below one percent to i mean it's just it's very unlikely
right and that's and if you are in that it's typically because you're
growing purely off organic referrals which is awesome but if you want to
be massive you need to grow off everything you need to grow off organic
you need to grow off outbound you need to grow off paid acquisition
right running ads and the issue that i just continue to see is and so
then so this last week i think we had like 10 gyms um pause on glx and
so glx is our kind of done for you side and all 10 of them paused
because there was too much inflow they could not handle the lead flow
and the appointments uh that were being set for them and i'm gonna pause
that right right there

3 00:02:00.000 --\> 00:03:00.000 and layla was on a podcast this last
week as well with uh i think it was push press i think it's push press
and uh the ceo push press was like you know um we've we've heard that
the number one complaint that that we hear from people you know from our
customers who have worked with you is that they're like man these guys
just expect me to sell all day and the answer is yes because that's what
you said you wanted right and so what's interesting for me is most
people want a full gym until they actually have a full gym or see what's
required to get a full gym right and so when we used to fly out and
force gyms to grow because we didn't have limiting beliefs around
growing a gym someone would have 80 clients at their crossfit and then
in 21 days they'd have 280 clients at their crossfit and they'd be like
holy what do i do i did not sign up for this it's like actually you did
sign up for this and so it reminds me oh i'm gonna pull this up for you
my favorite my favorite magic cards of all time all

4 00:03:00.000 --\> 00:04:00.000 right was called burning wish so dr
cashy sent me a card versus really cute of him and uh underneath it says
she wished for a weapon but for not the skill sorry she wished for a
weapon but not for the skill to wield it and i feel like a lot of times
that's what happens is uh at least for the the people who are coming in
to glx underprepared is they're like i really want to grow i want to get
new customers right our top client right now in the last 30 days sign up
100 new 130 new clients all right 130 and we actually that's in the last
30 days but she signed up 130 in the last two and a half weeks so if we
give it another like one and a half weeks she'll probably top 200 new
clients all right if you want a 200 300 400 500 person facility and you
are not able to sign up 20 new clients a week you will not get there
right because this is where the acceptable metrics parts comes in i
would like to give you permission that

5 00:04:00.000 --\> 00:05:00.000 if you have a service based business
all right services of any kind anything that is easy in is easy out and
you're like well i mean we have to onboard them and block which you
should be right but easy in service is easy in switching from your crm
to another crm not easy right big pain in the ass and so the likely that
you switch is very very low which is why software and things like that
are much stickier than services are and so you have to kind of accept
that that comes with the territory so if you're selling service and you
want to be big then you have to know that there's going to be a back end
churn that's going to occur and that's just because easy and easy out
that's how it works right but if you have easy in and you're not
maximizing the fact that that's your advantage and services that you can
scale quickly right your inflow then you're not using one of the primary
advantages of being a service provider right and so if it's like i want
to get to to 200 or let's say let's say let's say 300 members right i
want to get to

6 00:05:00.000 --\> 00:06:00.000 300 members okay cool you want to get
to 300 members now your turn is 10 industry average and you can only
sign up 10 trials a week and that's you maxed out right 10 new prospects
per week that give you a credit card for some front-end program or a
trial of some sort right you can only sign up 10 of those a week now
even somebody who comes in and signs up straight into eft what we have
noticed is we still have to resell them on a longer term because really
there's the i'm going to try it phase and then there's the i'm going to
commit phase and even if like i said you sign someone up for recurring
it doesn't actually mean they'll stick until they really make the second
sale and we've seen that across the board for us and our gyms at least
okay so if you can only take on 10 new new potential prospects right per
week and that's your cap and you want to get to 300 members then that
would mean that you have to convert 75 of them week in week out and a
lot of people are not doing that and 10 mind you means that you're
closing

7 00:06:00.000 --\> 00:07:00.000 uh 50 of four calls a day right that
are showing and let's say you're getting half those calls which means
you have to have eight scheduled appointments a day now most gyms that i
talk to don't even have they're they're stressed out of their mind with
that right but that's just for them to get 20 or 30 new customers a
month you want to get to 500 you want to get to 400 you have to accept
the fact that you're gonna be selling all day because you're selling a
service and you're trying to get to a high number and so most times most
times people have goals and are disconnected from the actions that are
required to get there right the numbers the basic math and most people
just don't do the math like so i would highly encourage you if you know
what your turn is look backwards and think okay if i'm going to lose 20
customers a month and i'm at 200 and i want to get to 400 a lot of times
you don't just double your inflow like sometimes you have to do even
more than that because you also lose some efficiency on the back it's
part of the game right and so if you're at 10 you're losing 20

8 00:07:00.000 --\> 00:08:00.000 all right and so if you know you're
converting half of your trials that means you have to make 40 sales a
month all right the industry average by the way is 35 which would mean
that if you wanted to replace those 20 you'd have to sell 60 trials a
month okay of some sort 60 front-end programs of some sort per month if
you can't do that you will never grow and you will always wonder why all
right and so this message is basically for anyone who wants to be a big
dog if you want to dominate the market which is the marketing that most
people respond to like dominate your competition blah blah all that kind
of stuff right you want to be a seven-figure gym okay cool then you have
to do the math that seven-figure gyms do and i do not know a single one
of them that do not know how to take on high numbers of traffic on a
weekend week out basis right what i continue to see is i'm gonna turn my
ads on for a couple weeks and i'll turn them off and then we gotta go
service those people no no no no if you want to scale your inflow

9 00:08:00.000 --\> 00:09:00.000 never stops you have to be able to sign
up people this week and next week and the week after that and the week
after that and fulfill you need to be doing both things concurrently and
if you're incapable of doing that it means you're not able to manage
your schedule of your team right they have to know that the first two
hours of the day it's blocked on their time is going for outbound uh for
for ongoing fulfillment like they're reaching out to your existing
customers to make sure that they stay then you have two hours a day
that's blocked for onboarding for new customers then you have
orientations right all that stuff and then you have sales and you have
to disperse the meetings that have to happen in order to make this
entire model work right and that's with any service business like this
works the same for us right we've got sales appointments we have kickoff
calls we have builds that happen in the background and then we have
ongoing check-ins to make sure the clients are doing well right beyond
that we still have daily calls with me to make sure that they're being
able to sell and convert and all that kind of stuff right and so the
whole point of this is if you're not

10 00:09:00.000 --\> 00:10:00.000 where you want to be a lot of time
it's because your inflow is your bottleneck and you haven't
operationally prepared yourself for what it actually looks like to sign
up a hundred people in a month right 50 60 80 new people in a month the
math is there if you want to do it you can do it but i'm just seeing
this like more times than not and then and like when when dan said it
from push press that the no more complaint that people got from jim
watch is like they're just they just flood you know they flooded me with
lee they expected me to sell a date yeah because that's what you said
you wanted so either switch your goal or switch your head right like
because like if you want to get to here it's just math backwards right
and so just most people have not done that math so here's how you do the
math if you want to grow to let's say uh 300 members okay and let's say
your churn is 10 that means you need to sign up 30 people per month to
break even

11 00:10:00.000 --\> 00:11:00.000 now let's just get those 30 done let's
say you convert half because to get the 300 you have some skills right
so you're converting half your front end people which means you're at 60
new signups per month that's 15 a week all right now if you're selling
one out of two that you're that you're talking to now you're talking 120
a month uh of people who you're talking to ever so that's 30 a week
roughly right that you're talking to and you're probably selling only
five days or now here's another one i could go off one is like we only
sold two days a week it's like well good luck trying to sell 100 you
know 30 people in two days it's not it's very unlikely that it's going
to happen right so if you're not let's say you're selling six days and
you're selling 30. so you gotta sell five people a day i'm sorry meet
with five people per day which is not that unreasonable it's five thirty
minute sessions it's two and a half hours three hours of sales a day
like this is not crazy right um now you're still going to have show ups
right which is going to be another inefficiency all right so to go 30
goes to 60 appointments a week oh interesting all right now we're at 60

12 00:11:00.000 --\> 00:12:00.000 appointments a week and we're just
maintaining 300 we're not even growing to get there yet interesting
right and so now we're seeing how this math starts to work out you're
like okay so now if i wanted to grow an extra 30 on top of that then i
need to have even more i've needed double what i just said okay and so
we have 30 conversions from 60 front in sales which is half of 120
meetups 120 uh client conversations per month okay that and then you
have half of those that show for their appointments and then you need to
double that to grow right that's the math and so if you're not able to
deal with that math then you will not get there and sometimes it's just
like just giving the the sheer reality of the situation is like it's a
volume game it's a math game it's the same people who get bent out of
shape over one person who says i gotta talk to my husband i don't

13 00:12:00.000 --\> 00:13:00.000 have my card on me it's like cool move
on champions have short memories right they bounce back fast they're
unaffected by losses because they're just thinking i know i need to
close half which means here's the news flash if you have to meet with
200 people a hundred people are gonna say no and you have to be
emotionally okay with that because you just understand the numbers right
you be like i don't know i mean you should try and get better at your
craft always of course right but if you just can't accept emotionally
and this is what i continue to see is that some guys just can't take the
emotional beating of having people say no which is why they'll never
grow right and like the most experienced sales people they don't get
bothered they're like yeah they understand that people come with their
own preconceived notions to the call it's not about you the salesman
it's about them right and just remembering it's about them so don't get
butt hurt if for some reason someone says no of course they have excuses
that's why they're not in shape of course they have limiting beliefs
that's why they're not

14 00:13:00.000 --\> 00:14:00.000 in shape and so if we're going to
expect that they're not going to come with emotional baggage to the call
or to the meeting it's ridiculous right and so then if we're to take
this back one step right and we said let's say 240 uh consoles we we're
gonna have to be generating 15 leads a day right roughly huh well what
does it take to get 15 leads a day in cost well right let's back into it
15 leads a day 10 bucks a lead or 150 a day it's 4 500 in ad spend per
month just the math and i think that a lot of people don't confront them
at they make these goals and don't think about what it takes to get
there and then as soon as it even gets to a third of what it would
actually take to get there to achieve what they want they're like oh my
god this is just so much so well yeah if that's what you want then this
is how this is how it works it's like well i want to be a champion
bodybuilder okay well i can only work out three days a week for an hour
okay good luck okay right and so it's like do you want to be

15 00:14:00.000 --\> 00:15:00.000 a champion or do you just want to be
another person who also ran and that's fine if that's what you want it's
just i'm not hearing that that's what you want so either people need to
get real clear on what they really want or re and and and then make the
adjustments accordingly or realize that it's not actually their priority
and that could go into a whole other thing about like priorities are
just priorities there's never really conflicting priorities you just
have one that is a bigger priority than another and if it conflicts then
the other one is a secondary priority and sometimes priorities do
conflict in terms of their nature but not their importance and so you
just need to figure out which of these things is more important to me
right and most times it's simply being able to delegate time and
appropriate on a calendar when things need to get done if we know that
we have to onboard 30 new customers per week then how do we fit let's
say 30 30 minute consultations in okay that's 15 hours a week i've got
one team member they're here five days a week there's three hours on
their on their calendar

16 00:15:00.000 --\> 00:16:00.000 great so now that one person has three
hours a day on their calendar five days a week for taking on new
customers okay that seems reasonable they still have another five hours
right and if they have to do conversion meetings which is to convert
them into a long-term membership from a trial or a front-end program now
uh from from those people we know that we again have 30 people we got to
meet with and so of those 30 people and it's to say it's going to take a
30 it's a 30 minute console to sell someone into membership boom now
that person's at six hours a day all right this is just one employee and
so this one employee is now managing the onboarding and the conversion
sales right and then they have two hours a day to do continuous reach
outs to the existing customers great that is a role right and then you
have a sales person who's gonna what i mean that has to be a full-time
sales person who's gonna hit those numbers right they're gonna meet with
60 people right 60 people six days a week it's 10 a day right 30 minutes
it's only five hours right and so if you're looking at this this is the
game is how long does it

17 00:16:00.000 --\> 00:17:00.000 take how many of them do we have block
the time and that is how you scale that's it that's all there is right
and just and just confronting the math now you can try and tweak it in
control but you have to understand you're not going to have orders of
magnitude improvements you're not going to sell 100 of people who show
up you're not going to keep 100 of people a month over a month it just
doesn't happen right it just it just doesn't and so you have to you deal
with what is right you're always going to try to improve and that's
normal but if you wait for always your improvements you will never start
and you will never get to where you're trying to go and so that is my
message for the week is that um your inflow is probably your bottleneck
and there has to be acceptable metrics that you can extrapolate off of
and then work backwards into how much time that's required and how many
people are required to help you get there and if that means for you as
the provider or the owner of the business that you need to work double
time in order to afford the person who's going to be able to release the
bottleneck then that is part of the game all right so anyways i hope you
guys have an amazing monday i hope you look at money math and i hope you
look at time math to

18 00:17:00.000 --\> 00:18:00.000 figure out how you can break your
bottlenecks so you can get to the gym that you want whether that's
corona or not corona or remote or launching anything or you have a b2b
business it doesn't matter the metrics are all the same all right so
lots of love hope you guys are stoked uh for this week because i am
we're super excited and i will catch you guys all soon all right you
