Transcription
You're familiar with me? Do you know who I am? Somewhat. I'm Sam Sens from Wish. Basically, um, so who can tell me what actually is scale? I mean, the answer is literally on the screen, so I'm going to hide it shortly. But, but what is scale? Someone tell me. Customer like, not quite. What is it? Define it at first principle, because if you want to do it, you have to know what it is. Come on. Making more money? Yeah, kind of. Scale at first principle is an increase of volume; that's all it is. So you're like, how do I scale? You've got all your KPIs, all you have—the answer is just increase scale. So I'm going to, I'm going to show you guys how to do this because basically, when I came to World's of Mastermind in April last year, we were doing about 4 to 400 to 500 grand a month, and we've never enough doubled the business in about a year. So we've gone from 400 to like 800, 900, and I've been spending the last month really on this document figuring out like how we did it and what mental models and stuff we use. Seldom is it about ads or funnels or copy or sales scripts; it's all about mental models and how you see it and how you think. And this is the main thing I learned from Sam Ens is like it's about how you see it and [__] like that. So we're going to go through this thing, so we'll start by defining it.
Scale, of first principle in business contracts, is basically just an increase in size. I think we can all agree on that. It's just taking something you've already got and just expanding it. And really, like the online business thing, we can break into three buckets. So another first princi- principle that we can define that we absolutely know to be true that we can reason from to get a gauge to this thing is we have three systems in our businesses, and nothing else. You could argue you've got operational back end, but acquisition and conversion—which is getting more clients, increasing market share, more appointments, more leads—this is the stuff that you guys want, right? This is what everyone thinks scale is, but there's two more things that everyone forgets: value delivery, which is more results, better results, more support, more questions from clients, more testimonials, better product; and then this is really the component of what you need to increase. And then the third thing is structure. So this is what happens, what you need to build as a result of increasing the size of these two things: you need more systems, bigger team, more operations, more standard operating procedures, more communication. So in April last year, we had 14 people, and now we've got 30. So we've had to double the size the team because we double the size the business; it's linear, it makes relative sense.
The playbook for scale is so simple: you find a value delivery system that works. This should be your number one priority, which you have in tow, right? Where your product actually works, you can actually get people results. You shouldn't be focused on building funnels or making sales scripts or writing copy or getting appointments. The first thing that you have to know is finding something that actually works, because you can figure out all the marketing, you can figure out all the sales, but if you send traffic to a jam, it won't move, and you're just going to rip people off, and people are going to get pissed, and they're you're going to get in trouble. So you can't scale without it. So short term, yes, you can make a bunch of money by just selling a scam, and then you can leave, but I'm assuming you guys don't want to do that. So first thing is you find something that works; then you find an acquisition or conversion system that works on a micro level. So scale is macro, and like you can, you can invert that and sort of reverse engineer it to say that what works in the micro will work in the macro. So if you think about something like a virus, like Covid, how Covid behaves with a hundred people in a room is how it will behave with a billion people; it's fractal, right? Everything works on this sort of fractal scale where what you see happens in the small will happen in the large. So if in the small you can't sign clients, you can't get appointments, you can't get results, if you try and just increase size and volume, well, you yourself, because you, you just can't get any of that stuff on a bigger scale, and you're going to lose a bit of money.
So the third thing you have to do is basically just drastically increase the volume of inputs into your acquisition systems. So once you know you can get results and you know you can get customers, scale is literally just increasing the volume of inputs. So this could be how many emails you send or what how how much you spend on ads, for example. Right now with Brian, we're trying to scale from $1,500 a day to 6K a day in ad spend because I want to get to like 1.5 mil a month, and I was like, how do I do that? I've got working systems; I'm just going to, I'm just going to push it through. And then the last you do is you have to accommodate the increase of clients with infrastructure, and this is, this happens as you go; there's not much skill involved in infrastructure building; it's just when you need to hire people and you get the hang of it. So with scale, what we're doing is a fun and proof of concept, blah blah blah, exciting, exciting. So what I've been able to define is basically what I've called conditions for scale, because scale is conditional; you cannot achieve it unless you have a set amount of things in the company. This means we need certain business conditions to achieve it. So you need to have good initial conditions, because if your business is broken in the micro and you just increase the volume of it, then it's going to be even more broken in the macro, right? Scale is like, it applies pressure to a system. So these are the six things you need: results, a product that actually gets results; offer that positions a product to resonate with a market; psychology; appointments that actually like show up, shows that actually show up; sales script; and then profit margin that's healthy. So for example, if you, if you're doing 100 grand a month, you're operating on a 10% margin; when you try and get to a mil a month, you're going to be on like a 1% margin, cuz profit shrinks to size typically, although not always. So these are the conditions, um, and this is really only for an info business. If you do not have these six things in tow in a micro little structure doing like 30 to 100 grand a month, you ain't going to be able to scale.
So then it comes down to the question of like, how do you validate those conditions? How do you actually know like, okay, well I've got client results, but how do you know? You need a metric; there needs to be something definable that you can track, right? That actually makes sense. So first of all, you need to have a refund rate of less than 5 to 10%. So you know the first thing is results; the first thing you need as a condition is results. So how do you validate that? Cuz like, you know, someone could say I get client results, like, well, you've had one client; how do you know the thing's going to work at scale? So 90% of your clients are nightmare free. So this is a huge metric that we've been sort of tracking with Imperium and Easy Grow is like if more than one out of 10 of your clients complain, moan, or drag their feet, that's just going to, you're going to—if you scale volume, you're just going to scale the problem. So that's thing you have to bear in mind with scale: you're not just scaling the business, you're scaling the problems within the business. And so if you're struggling to deal with them on this small scale now, when you apply volume, that thing is going to be out, out a bloody hand. Dispute rate less than 2.5%; if that's not true, then Stripe will just destroy you. So that's a big one. Average collection at least 50% of receivable cash on payment plans. So if you charge 10 grand, your lifetime value on any payment plan you collect on average needs to be at least 50%, and your average order value on day one cash collected is at minimum two to 25 to 50%. So what this means is if I charge 9600, which I do for my program, I need to be collecting on average at least $2500 to $5000 upfront in cash. If I don't do this and I try and scale ads, I get because I'm—it's—I can't liquidate my ad spend; it's costing me too much money; I'm, I'm operating a loss; I might not even collect on the money. Are you counting the 50% on cash payment plans from the total contract or from the 50% from besides the first? So these are two separate metrics. So this is lifetime value, this one here, and then this is just day one. I know. So but on the, on the—so the 50% you mean from Sol contract? So you mean 50% collect of the 9600? Yes. Yeah.
How do you validate your offer? Or if you've booked more than 120 appointments with it, it's valid; that's the number that I've come up with. I think if you've, and it, and it comes into how we tie this into the appointments and how you validate your sales system as well. So basically what I'm saying is if you guys want to scale and grow, these are your priorities; this is what you focus on. And then once you've got all this in tow, you press a button, and then you just, you increase your ad spend by like three fold, and your business increases by three fold. It's not difficult to scale; it's hard to find these conditions. People think that scaling is this weird like scary abstract weird thing; it's like I don't know how to do it, but once you find these, you just press button, and then you sit back, and you just make a ton of money. So appointments: if you're running a cold system, like an a cold outbound appointment booking system, you need to have an appointment booking rate of at least 2.5% on the system. If you're running ads, you need to have a cost per strategy sech of a $200 maximum, which is how much we pay per call. Hours is what, like $150, $50 or something, um, or this is just book call, book call, because the show comes in in a second here. You validate the other one as well. This is every single metric. Uh, ads 1.5x on day one cash collected and 3X row on Lifetime collection. So our ad Ras lifetime collection is I believe 3.7 at present, and day one is sort of around here, um, so Bas bear in mind I'm basing these metrics of what I know works because this is what I've done, so this isn't some like Theory crafting like, oh, it might be that, like, I actually know this to be true because this is what I've done for myself. So is your appointment booking rate 2.5? Well, we don't do the, we just cut the cold outbound team, but it was 4% before. Yeah, yeah, we cut the outbound. I'll explain that in a second. Outb you said completely? Yeah. Why? Because the conversion rate on outbound appointments was 10.23%, and the conversion rate on paid out appointments was 19.3%. So it was costing us three times the amount of money to get an appointment through ads, but it was twice as likely to convert, and also we collected way more cash in the back end. So this is the problem when you isolate a metric like cost per cool and think I'll just focus on the cost per cool; no, it's just profit. So that was why we got rid of it, um, so the show rate, 60% show rate on these 120 appointments you've booked. Anything you, you can get away the 50% show rate, but what will happen when you have a sales team, and I can attest to this, is you'll have a 60% show rate on average; that's industry standard; I think we can all agree, but you'll have a 50% call conducted rate, because what's going to happen is your reps are going to take back-to-back calls, and every now and then one of their calls going to run over, and they're going to miss the next meeting, and that might not be picked up by another rep, so your cool conducted rate will be 50%, which is why you have to have some margin here, um, sales. If you don't have a conversion rate of 25%, I know David you said 20, so you probably know more than me, but I'd say if you can't convert 25% yourself personally, you don't deserve to scale, because you're going to train a rep, and any rep you train is going to convert nearly half as bad as you. I think that's pretty much always the case; they'll do 60 to 70% at best of what you can do. So if you can't do much, they're going to do nothing at all. So if you have a rep taking calls, they should be converting at at least 15%; ideally you want more, but you know, I found you can scale a 15% conversion rate just fine. And then profit: if you have an info business and you're not sitting at 50% margin, you're doing something seriously wrong, because it's really not difficult to achieve that; like you're either overspending on something, or I mean, if you don't have that, I, I don't know, you can, you going have to, going to see a doctor, something wrong with your brain, I don't know. So is this all making sense? Any questions so far? For the profit, is that month-on-month cash or month? Month-on-month cash. For outbound, Charlie, you're referring to Cod email, Cod DMS, code calling? Yeah, all sorts of anything that's Cod. And by the way, I am going somewhere with this; I've got a whole, you, I, I hope you're going to like it, cuz it's going to be cool. Is that another question? Just for—is the standard you're setting at 15% for a rep to be acceptable? Yeah, yeah. We tried to mandate a minimum 18%, and then the guy, what happened with the Reps is they just started focusing on safety as opposed to aggression, so they take less calls, and they try and do like less, so they could just have their conversion rate increase. So now we just have a minimum unit, minimum cash, which is 12 units and $24,000 a month. If they don't hit that two months in a row, they're gone. So the only way you book appointment now is ads and YouTube organic and organic and email list? No, all none at all as of last week. Are you going to stop teaching C? No, because we still got—so we've actually—Okay, so we've still got a micro system, um, my, my research and developer for outbound organic, will he still runs a loom system that does like a 100 a day, so we might get like one or two, just so we've got this constant testing thing going on, because as soon as you stop doing what you teach after two years your knowledge is obsolete, and so we have to keep it going somewhat, um, so those are the requirements to scale. If you have them, you can literally 2x to 20x the business in probably 6 to 12 months. I say 20x like if you're doing like 40 grand a month right now, you just bang, go to like 800 grand a month literally in 12 months; it's probably possible, um, so here's the thing: if you don't have those things, then your focus needs to be on getting them. You don't need to worry about anything else except from those metrics. I don't, i', I've thought about this long and hard; I don't think there's another metric other than these that really matter; there might be a couple of little ones here and there, but really, I, I'll explain it all in, in a minute.
So why do you need those things? Well, there's something called strain or stress, whatever you want to call it, because if you don't have those conditions, you cannot scale. Why? Well, I'm going to stand in the way. Why do you guys think that you need those conditions to scale? Mhm. Then it's clear what you need to work on. Yes, kind of, because problem. Yeah, exactly. And I'm going to give you, I'm going to give you a metaphor that is chef's kiss, mate. I came up with this one myself; very proud of it. So if you're out of KPI, you're going to be scaling problems. This is because scale applies stress or strain to your business and the components of it. So it's like I said, if you have a problem in the micro and you just apply volume to it, you're just going to blow that problem out of proportion, and you're not going to be able to deal with it when you try to scale. Any issue that is existing in the business will be amplified by the exponent of the scale and probably multiplied by two. Weaknesses create exposure; for example, if you have 30 successful clients, but you have a problem with client support, which means every single client is asking you, you questions, and you can't seem to get your head above water, well, if you try and scale the business by five times, then that problem will probably be multiplied by 10; you're going to have 300 people coming at you; you can't even deal with 30. Like you have to smooth these cracks out before you grow. So scale is achieved by increasing volume; we know this through the business. When you increase the volume, you put more strain on the processes; this is, is basically pressure. If your systems are weak, the pressure will break them; it will fall apart. So I got a visualization for you. So imagine that your business is a submarine, and this is where it is right now. So sub 100 grand a month, you haven't really scaled; 100 grand a month is not scale; a million a month isn't really scale to be honest, but in the info world, this is how I measure it, right? It's abstractive. This is where you are right now. If you have—what you can see is a little white crack. Everybody see that? Is it, is it clear enough? Good. This represents a problem, but because you're not scaling, the problem doesn't hurt that much; you know, like the odd client messages you, or you get the odd dispute, or you get the odd refund rate, or you know your ad calls cost has gone up a little bit this month; it's a small problem; it doesn't hurt too much, but it's there, and something's out of KPI because of it. And what happens is as the submarine submerges, and this represents scale, okay, so as we go deeper and deeper into the market and we get more customers, pressure is applied to the submarine, and any little crack in the submarine will get bigger with pressure, and then eventually it'll break the thing. So this is 30 grand a month, but my support kind of sucks, and this is 300 grand a month, my support really sucks, and you know, and it will just completely break the thing apart. So that's how you have to visualize these little problems. So yeah, I've kind of just explained it there; I won't bother going through it again. So yeah, metrics reveal weaknesses; weaknesses reveal incompetence; and incompetence reveals you. So if you have any of these, it's your fault, is because you lack a skill or a belief system or a piece of knowledge that you should have, and if you don't have it, it's kind of your fault. So not to give you too much of a trippy diagram here, but I couldn't find anything else. So what I was talking earlier about the micro and macro and fractal thing, does that all make sense to you guys? You get the like, what happens in the small will happen in the big? You see what? Make sense? Clear? Good. So yeah, these are the conditions, blah blah blah, fractal, fractal. I've already explained that; we don't have to worry too much about that. So like, you know, the reason this works is because everyone in the market is the same; like all of you guys are coaches, consultants, or most of you are; I can predict that there are patterns between all of you guys in terms of like how much money you will have in your bank or what sort of offer will resonate with you or who mentored you or what YouTube channels you watch or what keeps you up at night, what you worry about, what your dreams are, how I can sk you schedule an appointment, what problems like markets have like affinity, and you can use that affinity to group people into this bucket, and then you can obviously understand on a mass level, and that's how we scale. So now let's talk about the actual steps, okay? How we scale. Scale is very easy; it's very simple. Step One is finding favorable
Business conditions are the key performance indicators I talked about: the 60% show rate, the 50% profit margin, the 15% rep conversion rate, the 25% personal conversion rate, etc. If you had these right now, you wouldn't be paying attention to this; you'd already be making a million a month. All of you individually in your business don't have these, and if you do, you're very lucky.
Step two is increasing the volume of input through the system. This is the fun part—messaging Brian on Slack, saying, "Hey, can we spend an extra $20, $100,000 a month on ads?" Then it's about building operational infrastructure to manage the chaos. Scale brings a lot of chaos—mess, operations managers, operations assistants, media buyers, support staff, coaches. It's messy, but you can deal with it.
Step one is engineering working systems that create favorable conditions for different components of the business that won't break under the strain or stress of significant volume increase. This is where 95%, 99% even, of your work is going to come from. Hands up who doesn't have those KPIs? Everyone, right? That's why you're here, that's why you're learning today.
Step two is the actual act of scaling. This is understanding the below diagram and pulling levers to increase the input flows through the business to produce the output. You then take the output and feed it back in to create more input. This is how a system works. This is my sound alums from Wish diagram—your business's first principle.
What is the input of a business? What do we actually put into this machine to make money? It's attention. At the very first principle, someone has to pay you some sort of attention. What is the catalyst or the genesis of a B2B business relationship? How does any relationship begin? It's attention—eyeball, ear, or mouth. We take the niche's attention through advertising or ads, and then we catalyze that through business conditions—those KPIs. Someone goes through the system, zigzagging, and once they've been through those favorable conditions that allow us to scale, we make money. If we're smart, we reinvest that money into getting more attention, and we repeat this infinite money glitch. That's business 101, but this is where everyone goes wrong. It's not about getting this, making this, or doing this; it's about finding these things so you can get more of that to get more of that to put it back into there. Obviously, we operate in a market.
Step three, after steps one and two, is building infrastructure: cash flow management system, systems to track internal metrics, testimonials, websites—all the crap that comes when you scale. If you've nailed step one, you can just increase ad spend, outreach, or do more content; it's pretty simple. Scaling is easy—pressing a few buttons. However, finding the conditions is hard.
How do you find these conditions? How do you isolate them and know what works? What levers do I have to pull? Everyone can understand the basic information, but how do you actually find it? There are four disciplines: focus (concentrating energy and time into one thing and asymmetries); throughput (understanding how value flows through a business and how to fix the bottleneck); systems (systemizing parts of your company for repeatability, sustainability, maintainability, and predictability); and economics (metrics and tracking). If you nail these abstractions, that's all you need to do.
Scale is an increase in size. We cannot increase in size when something is broken on a small level. How do we fix the problem? You learn how to focus, measure throughput, build systems, and use economics. This is literally how I did it—got me to $800,000 a month.
The first is focus. We have energy and time, caloric potential and hours in the day. Some people's results are anything but the same. Why? It's focus. Focus is a force multiplier—it multiplies the effects of time and energy. You have time and energy; you use this to isolate problems, solve them, find favorable conditions so you can increase and scale and make money. Imagine a bank filled with energy and time. You spend a little bit every day until you die. How heavily you succeed or fail is down to how well you spend these two currencies. Focus is bargaining power—a coupon to get way more for your spend. It makes these things worth something. Successful people concentrate these resources, and they win.
Let's say three people are given a book to read in one hour. Person A reads 40 pages, person B 10, person C 80. Why? It's focus. Four units of focus equals 40 pages; one unit equals 10; eight units equals 80. This person is twice as successful as this person, or eight times as successful as this person, purely because they know how to focus. You can use this model with business success and income. Focus saves you time. This person could spend three years in business and make $3,000 a month, but this person could spend a year and make $9,000 a month. Focus massively impacts the discrepancies we see in people's results.
You can put your energy and time into lots of directions and make an inch of progress in 10 directions, or you can put all that energy and time into one direction and make a lot of progress in one thing. Humans value people who are very good at just one thing. Would you rather be average everywhere or great somewhere? You can focus in the minute or the hour, but in the macro, you can focus in the year or the decade. Focusing in the hour means reading the book; focusing in the decade means working on one business with one niche. Macro focus is avoiding shiny objects—saying no to stuff.
How do I know what to focus on? This is the problem. You need a goal—your Polaris star, your guiding North principle. Mine is to be a billionaire. You should have a vision and a mission. A goal sets the conditions for what you're going to do. If you don't know what you're working on, you can't optimize.
Let's talk about asymmetries. These are things in your business that you can work on whereby the output (progress towards your goal) is extremely disproportionate to the input (time and energy). Asymmetry is where you put something small in and get something very big out. Anti-asymmetry is what most people do—spending tons of time and energy but not getting anywhere. You want asymmetry—putting the smallest amount in but getting the biggest amount out.
I'll give you examples. The Carolina Reaper—a tiny piece burns you alive. One offensive word can make someone hate you. Buying someone a tiny gift and they love you forever. Cutting out one type of food could cure 80% of your health problems. One random social exchange could get you your dream career.
In my business: one YouTube video (25 minutes to make) got me 500 appointments, 250 conducted calls, and 50 closed deals for $400,000. Five minutes on a YouTube thumbnail doubled my views. One hire got me from $400,000 a month to a million. The offer is a huge asymmetry. I spent two to three days on my offer (20 clients or your money back, plus $5,000), and it booked us 20-30 appointments. The offer is positioning—outcome, timeframe, risk reversal, and using words that make it look different. We guarantee 20 clients in six months, or we give their money back plus $5,000 and six months of free coaching. It works. Or week two of Sam Ovens' Consulting Accelerator—20 hours of mindset training made me a millionaire. You have to look for these tiny things.
So how do you find asymmetries in info businesses? If you've signed over 30 clients, had more than 120 appointments, and more than 3-6 months have elapsed, you can do this exercise. These are ranked in order of importance, with the most asymmetrical metric at the top. These are the key performance indicators I used to get to a million a month. Your refund rate is the most important metric by a mile. You can get everything else right—funnel, VSL, copywriters, sales team, onboarding—but if you don't get people results, it's all for nothing.
Customer success, and info is tricky to track because you don't know people are doing the work; you don't know people are like actually doing what you say they do. But what we do is we start with a refund rate. Our refund rate for Imperium is 0.42%, which means that if we sign 200 clients, maybe one of them will ask for a refund, and half the time they don't even deserve it. So that's how you know you've got a good product, so you can tick that one off.
So what you need to do is you go through this list, and you put your metric in here. And if it's in KPI, then this is a favorable condition that you have to scale, which means you don't have to work on it. So what you're doing is you're coming through here with the KPIs, and then you're isolating the things that are out of KPI that if you scale will destroy you, and then you fix them. And that's how you know what to focus on. Of course, left as soon as I get to that point, yeah, I crescendo right up [Applause] There I was just saying these are the metrics that you need to look up.
So if you look at these in order of importance, and you're looking to try and find these, what you're doing here when you look at these metrics is you're exposing weaknesses; you're exposing that little crack in the submarine that if you push down to the bottom of the Mariana trench, it will destroy and you blow up and be in that disaster that was in the news recently, which I won't get into because it's not a funny joke. Um, but this is how you expose your weaknesses. So you start with your refund rate, and then your dispute rate, which you find in Stripe; your nightmare rate, which is like how many of your clients make you want to kill yourself. And then if these are in KPI, then you move on to the next. So you're just going through here to find out where you're weak, and if you're out of KPI, then you circle no, and now you know what's to work on. And once all of these are in KPI, all you have to do is increase volume; it's literally that simple.
Now you could all make the argument, "Yes, but I could make this more efficient, and I could try and get to 100 bucks a call, or I could try and get my conversion rate to 40%." Yes, you can, and you can make the system more efficient by increasing these key performance indicators and reducing them or manipulating them. But fundamentally, this is what I found to get to eight figures with a 50% margin and bring home 500 grand a month tax-free profit. These are the numbers that we've used, so I know it works. So yes, you could say, "Well, technically, I want my collection rate to be 65% because the system is then 15% more efficient," but yes, you work on those things.
So what you then do, step four of scale, is you fix these to KPI, you increase the volume, then you fix the infrastructure that comes with the chaos of scale, and then you come back to these and figure out where you can find more leverage; you find where you're weakest. So, for example, if your average order of price is 26%, everything else is way within KPI, then you pick the weakest metric and you work on that. But generally speaking, a 50% margin at a million a month, I wouldn't mess with anything; I'm just going to print money at that point. I'm not going to mess around with it at all because you can increase a metric here but destroy everything else. So that's how to know what to work on. Don't with the pipe; don't with the pipe; don't the crack pipe, mate; no, don't want to do that. So you know, look at all these, and then write the metric down, and then is it in KPI or not? And then you circle the ones that are out of KPI, and then you make a list of them, and then you go to town on fixing them. And I've got a mental model that shows you how to fix them in a second as well.
Are you currently out on KPI on any of yours? No, we're all in; everything's within KPI. So what? So what are you to scale to? What's your two million a month right now? I want to break it; that's my mission with EasyGrow right now with the ads and everything. Of course, Brian's gone now; just brilliant. Is it like my goal at the moment with EasyGrow is to, cuz we've got one product right, I want to find the point of diminishing returns with ads, the peak most optimal point of efficiency of ad spend where we can do this on a 50% margin and just continue that scale. And are you going to keep it a cash-flow business, you take money out of, or are you going to sell it? It's a secret. It's a secret. No, it's not really a secret; I don't know yet. When you're making like four, five million a year in profit, you don't have to think too much about that. Like I might sell it eventually if I get an offer that makes sense; I'll sell it. If I don't, I won't. But when you've got a machine that just prints money, why just run it for as long as you can? Like if someone came along and offered me a certain number for Imperium to buy it, I'd be like, "Yeah, of course." But if they came along and offered a number that didn't make sense, I'd be like, "No." So I'm not like I'm not thinking too much about that right now; we're just stacking cash. This is why I wear Crocs and wear a Casio; I want as much cash as I can possibly get so that when another Co happens, I can just like quadruple my money. It's all I care about is just cash, cash, cash, cash; as much cash as possible because that's where the leverage comes from. So this is a pretty good way to make a bunch of cash.
You sold, just you've sold like expensive any watches or any? I never bought any. I've got a Mercedes, obviously; the Palm is quite expensive, but I justify that because Bo and I both live there, which means that it's basically just one big meeting room, and then we both got our offices there and stuff, and it's quiet and peaceful. That's expensive, but other than that, huh, how much is that? It's like 30 grand a month. So your goal to close the gap between you are now and you billionaire, which is goal yours, is to stack as much cash as possible and then wait for a crash and then invest that money in crash in assets, maybe businesses or properties or SC. So look, put it this way; so I had this idea a long time ago; um, I came up with this idea that true pain manifests when the universe presents you with an opportunity that you did not have the character to prepare for, to prepare for. So my biggest fear is something coming along like a golden opportunity of a lifetime, and I haven't got the cash, energy, or time to put into it, so I can get the I can I can just get I can shut down the business and get the energy in time like like that. But I want as much cash as possible so that when something big comes along, I could have an opportunity to start like a company or a platform. Or this is also why I'm building the audience as well because if you have cash and attention, you can basically become a billionaire with anything pretty much in this day and age. So that's why, and this is how you make as much cash as bloody possible, and you know the endgame is the billionaire thing, and it's not because I want, you know, power and all this; it's just because I feel that's how you complete the game; that's level 126 on RuneScape. Yeah, you know, that's like that's the top of the top. Once you've done that, it's like, "Okay, I'll go and chill on a yacht now." So we so does so does that all make sense? Does this clarify, like, because this is literally if you if you just have this, and that's all you have, and that's that's literally all you need to scale. Now, yes, there's some other little nuances like you need to have an aura ring and blue light blockers and all that crap, but if you have these, you're good.
Um, question. Um, I was going to ask about traffic. I mean, all all these things are fit in right; it's just like more traffic at the top that also solves a lot of problems. You have any KPIs for that? What do you mean, especially like organic, cuz I wanted to ask you that in what bringing people through this entire pipeline right? Do you track the traffic that you're getting from? I will, let me show you something. Um, I'll I'll answer that but inadvertently in about maybe 10 minutes if that's okay. Um, yeah, okay. So this is a key; I'll share this document with you guys, you can have it. This is a key for like how to actually find these metrics and where to track them and where to get the data and stuff like that. But generally speaking, at first principle, I can say, because I've done it, if you have those things, you can get to a million a month. I don't know if they can get you to two million a month cuz I haven't done that yet, but eight figures I know is possible with those numbers.
Understand your thought process around, you know, obviously I know you're stacking cash, I get that, but like how are you how are you running? Do you run your life on like the minimum minimum you can live with? No, well, the company pays for the house because technically it's an office, and then I just make 10 grand a month personally, and I just live within my means in that I don't like because this is why having a business partner is great; we've got like a Chinese wall between taking money out of a company. If I get an impulse to buy a Lamborghini, I've got to go and ask Bo, "Dad, can I have a Lambo?" And he'll be like, "No." And if he wants to go and buy a watch or something crazy, I'll be like, "Why do you want that?" And he'll be like, "Yeah, I guess you're right." So like I make a 100 grand a year personally, and Bo and I do not touch the company money; the company money we don't treat it like it's our money, and that's how you have to have that perspective and discipline if you want to do something huge. If you want to just have a lifestyle, you don't have to do that; you can make like, you know, 20, 30, 40 grand a month. But I know that if the company's good, I will always be good, and that's why I focus on it like that. So let's carry on because now the question is how do you like how do you fix these and how do you like actually figure out what drives them and what pushes them forward and stuff like that.
Question: 12 appointments a month, just total, total, total, total. So this is something you can do that Sam recommends that I did that was really helpful; Sam Ovens. It's called 100 units at a time where you basically just become more cognizant and aware of your time. I won't go through it now because I don't think that any of you guys, well, maybe you can. You basically just set an alarm for half an hour every day and then track what you've done in that last half hour because until you make the unconscious conscious, it will rule your life, and you will call it fate. So it's a pretty simple exercise, and then I've got a spreadsheet here; you can visualize how it's tracked where every single half hour into of all you put in what you've done, and then you categorize it into like entertainment or sleeping or exercise, and then you define it as value or waste. And this is how you optimize your time to focus on the things. Yes, I started to actually track my time like every hour, and I was stressed out too, and as soon as I started to track my time, I was like, "Oh [ __ ] I'm wasting time here; I'm going to those tasks there," and then I could see the tasks I needed to like hand that helped me a lot. Yeah, it's just numbers, man; like a business, one of these info businesses is literally just a collection of numbers, and when you make that paradigm shift and you actually just see it like I look at my business because you ask what is a business? Is it the people? Yeah, you could argue that, but a business to me is just a bunch of spreadsheets, and if those spreadsheets are saying the right thing, then I'm going to make a ton of money. Seriously, like it's not it's not the product; it's not the office. It's You could argue it's the team, right? But if you just if the numbers make sense, then you just print money, you know. So let's talk about throughput. So throughput is the next mental model because this is how to conceptualize and understand how to isolate the metrics even further and how to even like how do you hone in and and fix the damn thing. Who's heard of throughput before? Brian, will yep. Okay, cool. So okay, we kind of established there's three systems in your business that must be working for scale to happen: acquisition, I.E., can I get appointments and get them to show up; conversion, I.E., can I sell them and make money on the front end of that sale; and value delivery, do they not ask for their money back? You now these three things, you're going to be fine. How do we measure these three things? We use the metrics I just explained at a macro business, sorry, a macro level. One of these info businesses is those three systems, so in that order. And what we can do is we can start to view this business like a pipe. Okay, so you can start to actually look at the business like a pipe. Now, earlier on, this is a little memory test for all of you: What did I say was the first principal input of a business? Who can remember? Awareness. Yes, attention and awareness. So this tap here represents your market, and the little liquid coming out of it represents attention. This is the first thing that you have to work with. You know, in ancient times they talked about like Alchemy, like turning base metals into gold. What kind of what we're doing here in business is we're turning attention into cash, and that's literally at first principle we're doing. So what happens with your business, whether you like it or not, at first principle is the first pipe in your business is acquisition: Can I capture this attention in some way, shape, or form? Fun let to get people to book a call and essentially start the customer journey. The second pipe is conversion: Can I take those calls, get them to show up, and have them give me money for the product? And then the third thing that we established in this little Tri-Vector is value delivery: Can I actually do what I say I can do? And then you have yield. So yield is the thing that comes as a result of this; this is the cash, the profit, all that fancy stuff that we want. So the water represents value. So what's happening with this system is value is flowing through the system, and we're defining the the flow of this thing as the flow of value. So when I talk about throughput, I'm talking about the flow of value, or more importantly, the conversion of value. So we convert the Am I passing out, or is that thing shaking a little bit? Oh, I was having a fit or something, and I was like, "Jesus." Right. So okay, so blah blah blah. Okay, so you can look at your business on a global macro level like a big boy; these are the main systems, but you can also look at your business on a micro level, on a more local level. So this, for example, is the throughput system or the three-stage process for the conversion of acquisition. So we start with getting attention, which could be a YouTube ad or could be YouTube organic, and then we convert the attention into interest, which is pretty simple and straightforward where, you know, if you send a cold email to someone, you've got their attention because they've opened the email; the interest is the reply. And then we we convert the interest into appointments. So you reply to my email; I'm going to send you a reply to convert you into an appointment. And then the the yield of that is getting people that show up. So this is the this is the system of acquisition: attention to interest, interest to appointments, appointments to shows. And then we have the same thing for conversion. So the input of conversion is obviously the the output of the last system, which is shows. So we start with qualifying and discovering, and then we pitch and answer questions, handle objections, and then close. So these are the three stages of the conversion system. And then the yield of this system or the yield of the throughput is closing deals and making money. And then you can see on a value delivery perspective. So, you know, we start with the onboarding system; the first part of value delivery is getting a client on board, and then we give them information through our programs or through our courses, and then we give them support, and then the yield of that is client results. So you can see how like how easy it is to understand info businesses and how they work when you can compartmentalize them into these sections, and you can understand the throughput, the yield, the input, the output, and how to get what you want because this gives you serious clarity on what to work on. So you can get a bit deeper with this; I'm not going to get into these too much because you guys should get the point by now. Um, so this is a pretty interesting metaphor that I'm going to use: Barrel foret or foret pipe and bank. So what you want to do, this is what I've done, got me to eight figures, is visualize your market is a huge barrel of water. Okay, everybody got that image in their head? Big old brown barrel of water. In the same way the water needs to be filtered before it can be drunk in the wild or something, this raw value needs to be converted many times before it can be cashed in on. So the water in the barrel is attention; this is these are the eyeballs and the hypothalamus of your brain, and then putting that onto your product. So the rawest form of value straight from the barrel is attention. Now, we can't make we can't attention isn't money to us; it's not really that valuable. Sure, like everyone says attention is money, but attention is money when it's been converted 100 times. So in the same way that, you know, if you found a random barrel in the street somewhere, you probably wouldn't drink from the water inside of it; you probably filter it first and use a filtering system. So we need to filter this water and convert it to make money. So ads, content, and outreach are all faucets that you can attach to the bottom of the barrel to start extracting value from it. So I'm about to give you my business in a complete um diagram. This thing took me that's a distiller there. Yeah, so I want to try and um actually I know what I can do here. Um, I was hoping you guys would have that reaction. Cuz I spent like four hours on this bloody thing. So this is how the machine works, and when you look at this is literally like this is literally my business; it's literally the business, and I get quite excited about it, cuz you can't tell. So you can't really you can okay, you guys can't really read this, but I'm going to explain. So here we have the market; here we have the barrel of water right; we got the we got the niche; we've got the market; we've got the attention of the the aggregation of every single human that we can possibly sell to in this barrel. Now we have to extract that attention and extract that value to begin the pipeline flow. So this here is what we would call throughput right. So, you know, earlier I showed you guys the pipes, and like at a little level, we got three pipes; it's all cute; it looks nice, blah blah blah. Well, well, this is the full machine, and this is every single step of conversion or filtering that this water has to go through to either become profitable or drinkable or a client right. So the tap represents Brian Monard. Okay, Brian turns this tap on for me by running my ads. So you can get this from, by the way, this is the system specifically for ads because this is the main one we now use. You could have the
Same thing for outbound, or paid, or inbound, but you have the tap. The tap basically is ads, or outreach, or content—some way to tap into this barrel. Who’s seen *The Hunger Games*? *The Hunger Games* part two, part two. So there’s this scene where they’re all thirsty and they need a drink, and one of the donors or sponsors sends them the, like, faucet. They send them this thing; they knock it into the tree, and then the tree starts giving them water. Outreach, ads, or content—that’s your faucet. That’s how you tap into this thing and get into it.
The first stage of conversion for my system, for ads, is the hook. So the very first thing that could go wrong with this machine and prevent the flow of water and value through the whole system, for me and B to basically have a nice life, is the hook. So the first 5 seconds of the ad—if I [__] this up, the machine and system doesn’t work. This diagram here represents every single thing that needs to work in your business for you to make money, or at least make the money I’ve made, which is like 50% margin—a figure I know to be true because I’ve done it right. So we start with the hook, then we make the offer. Okay, this is the second most important thing in the machine. Um, then we have the call to action link. It’s a shame that actually I can—I can just zoom in a little bit here, and we’ll go—we’ll go through to it. You can see that. Okay, cool. So attention comes in; we hook the attention, right? We’ve got the fish on the line; yippy, yippee-do-dah, right? The little float’s gone to the bottom of the water. We make the offer. If the offer works, people click the link. If they click the link, then they opt in. If they opt in, they watch the VSL. Now, a couple of things can happen: they can go straight to the call form and schedule an appointment, or they don’t go straight to the form, so we have to email them, retarget them, re-hook them to get them to schedule. This is the first thing that has to happen for the value to flow through the system. Now, I cannot have any bot one X in here, otherwise nothing’s going to flow through the rest of the—the machine, right? Is this all making sense? Does this also clarify what your business actually is and what it does? Good. Okay, so the next thing that happens… okay, so what—basically the—or the—I don’t know if you can tell the difference from where you are, but the yellow represents acquisition; the orange represents conversion, which is sales; and then the red represents value delivery. So remember I said there’s three systems, and they can all be bought onto different points. These are the points at which they can be B on.
So once we got someone to schedule, we call them to confirm the schedule. Then we confirm their call with an email, and then we get the rep to reach out and introduce themselves through email, and then we send them calendary reminders, and then they show up. So this here, up until this point, this is the acquisition system to get appointments, and this is the very first thing that can go wrong. So I could bottleneck at the VSL section; my VSL sucked. I could bottleneck at the show system; if this little pipeline didn’t work properly, if we stop sending confirmation emails and Cali reminders, then suddenly the throughput is cut off at this point, and no more value can flow through the system and go through the rest of the process because we bought an act here. Does that make sense? Good. So then we move on to the next stage in the pipeline, which is the conversion stage. So we start by stating the agenda on the sales call. This is where we say what we’re going to do on this call is blah, blah, blah—slap you about emotionally—and then I’m going to try and sell you something, right? Then we qualify them, then we discover their problem, then we pitch them, then we answer their questions they have about the program, then we pitch the price, then we handle their objections, then we negotiate a payment term, then we discuss financing, or we discuss the actual getting the payment—so sending the Stripe link—then we set their expectations, and then we send them a contract, then they request to join school, then we configure Stripe in the back end to get their payment set up, then we wait 24 hours, and we grant access. This is the conversion system. Now, once again, by being able to first-principle every single step someone goes through to become a client here, or to actually close from an appointment to a sale, is very important because now if there’s ever a problem with any—if I have a problem where one day I wake up and in the last week I made half the sales I usually would make, all I have to do is look at this diagram, and then each little section will have a metric as well. They don’t all have metrics because you’re not going to measure the Stripe config configuration—like, operations manager, did you manage to set that up? Maybe you would, I don’t know—but it becomes very apparent very quickly what the problem is, and this is how you have to think if you want to just go out of nowhere. So that’s that.
Now, once we’ve done this, we’ve got the client. This is the bit that everyone wants to get right. Okay, we’ve all got the clients, blah, blah, blah, fantastic. So now it becomes about value delivery. Okay, I’m just going to zoom out a little bit here. So now it becomes about value delivery because now we have to convert. So okay, I’ll—I’ll recap. So we have gone so far from raw attention, which is just defined as the five senses being put onto our business in some way, shape, or form. We’ve gone from raw retention all the way through this pipeline to actually having cash in the bank and having commitment from a client to pay future payments. Yeah, I’m just curious for the why you wait 24 hours to X, because you have to let the emotion settle. If you give someone access to your program immediately after they’ve signed, if their expectations of the program are any way, shape, or form mis-set, you’ve got someone on such an emotional high after they’ve bought that they need to sleep on that emotion to become a little bit more rational. Because if they join the program on that emotional high and it doesn’t quite—if they come in in the community, someone’s like, “I haven’t booked an appointment today,” then there’s so much more emotionally vulnerable, and then they’re going to be like, “I want a refund; it’s not going to work.” But if they sleep on it, they never ever dispute or ask for anything different ever. So we’ve gone from raw value, and we’ve through-puted this through the whole system to a close. Yippee-do. Now the hard part starts, which is actually delivering results and getting value into these people’s lives. So how do we do this? Well, once again, yours truly have to find it. So we start with the intro video in the program. This is where someone joins the program; they get access to the course, and the first thing they do is they see the thing that says, “Click here, watch here.” This is where you have to start, and this sets their expectations. This is a very, very important video because this sets the conditions for their entire journey through the rest of the pipeline. So if you [__] this up, you’ve bottlenecked the value delivery process. If you don’t have this, you’ve bottlenecked the value delivery process. It has to be succinct. Then we get them to do an introduction post in the community, and then they have to go through something called Acquisition Genesis, which is basically the module we have at the beginning that nearly killed me to make that explains how client acquisition actually works because we help people with client acquisition—that’s what we do, in case you can’t tell, right? Um, so they go through this first, then they go through Sales Transcendence, which is our mindset module. Now, once they get to this point, we once again have this weird little thing where it’s—there’s other things they can do. So usually what’s going to happen is someone’s going to either go into outbound systems, which is basically using our cold outreach methods to get clients, or they’re going to go into something called Consulting Nana. So Consulting Nana is the module that I made recently. This is what—ironically, this module here that I’m teaching you guys is designed to be in Consultant Nana, which is why I’ve been making it at the moment; it’s taking me four months—but they can go into Consultant Nana, which explains how to structure a course, how to build a course. God, this sounds like a pitch; I’m going to shut up, but you get the point. So if they go through that, then they’ll build their program, they’ll launch their program, they’ll come back to the outbound or the sales systems. So they start with the outbound systems usually, like they want to get cold—cold appointments, then they build the sales system so they know how to convert them, and then usually a lot of people don’t bother because they have so many appointments from here that they don’t need them, but some clients will mess around with the inbound systems and then the paid systems. Now, this is the big—the big juicy boy time. This is the one pipe that people forget in their value delivery process: it’s time. Once you’ve given people—or once given people all this stuff here, it can take like 6 to 12 months before they come knocking like, “Dude, I make like 100 grand a month now.” One of our clients, Cindy Le, started with just making two grand a month; she was one of our first clients. So three years has elapsed, and she’s now making 250 grand a month, and it took time; it takes a lot of time. So for some people it might take a week; some people it might take a year, but you need to give it time, and if you don’t give it time and you try and like panic and people aren’t getting results—I see this the time where people are like, “My clients aren’t doing the work; they’re not getting results.” Well, how long have they been in the program? Oh, like two weeks, bro. Like, give it two years, man. And then what happens is the last stage of the pipeline is the clients will get their first results, and then from this they’re going to post wins; we’re going to get Trustpilot reviews and client interviews. So this is just a little stage in their journey of conversion to cash that ironically feeds back into the—the thing at the beginning, and then—um—and then it’s just results. So they get more results, more results, more results, and then here’s the—the final pipe is the following because this is the final method of restriction that someone could impose on your business if they trigger the guarantee, right? So I have this risky guarantee where after 6 months, if someone hasn’t got 20 clients, I give them back not only all of their money, but I have to—I’m legally obligated to refund them $5,000 as well. So I can go net negative on every client I sign—never have, because it works, because we build [__], that’s pretty [__] incredible. But this is the final stage in the pipeline. So if someone doesn’t get results, all of this is for nothing because they can trigger the guarantee, and the value is going to be cut off, and it’s kind of like putting a Hoover at the top of the pipe, and the value is going to be sucked out, and it’s all gone; it’s all for nothing. Alternatively, another method of value here is a mastermind upsell or renewal. So we do yearly billing where people renew every year, and so if we get them enough results and build enough rapport with them, they’ll join the mastermind—which is not beginning yet, but we’re going to start one next year—they’ll renew, and they won’t trigger the guarantee, and when this happens, we make some money, and that’s the system. That’s everything you need to have in tow to get to a mil a month. I can’t tell—I can’t attest or tell you if it works bigger level than that because, like I said, haven’t done it, but I got a pretty strong inkling it does. If my theory of just increasing volume is—is sound, then that should in theory make sense because when you have all of the—all of these numbers should in theory hold KPI regardless of how much volume goes through them. Now, they might not—a wait, I missed something; I missed something. You guys will notice this little diagram here. So this is the—this is the reinvestment flywheel because if you’ve done this once, you’re going to want to do it like 10 million times. So you take the money that you’ve made, and then you put it back into Brian Mon card’s brain, and you get more value to flow, and then you—you do it again and again and again and again and again, and before you know it, in five years you’ve made like 50 million, and then a crash comes along, you made a billion. Yeah, you want to get the results as quick as possible. So how do you explain the time aspect of things to your cents—that is going to take time to get results? Be honest with him. Dude, I—I had—I had some people on sales calls when I used to do sales calls, and they’d be like, “Yeah, I want to get to like 100 grand a month in the next like two months.” I just be like, “Brother, that’s not going to happen. I can get you there in two years, but I can’t get you there in two months.”