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Your Fast Path To Big Cash-How To Scale Your Business
Before we talk about scaling a business, the first question that any entrepreneur should ask themselves is why do they want to scale? Sometimes they think, “If I want to make more money, I need to scale.” It may not be the case because I do know companies that make tens of millions of dollars. A friend of mine has a company that makes over $50 million a year, yet the net is less than $100,000 a year. Bigger is not always better. Better is better. The point of the scale is to make more profit but not every business is meant to scale. It depends on the entrepreneur’s goal to see his goal. Sometimes as an entrepreneur, maybe your goal is just to have a lifestyle business. You’re like, “I just want to make a couple of $100,000 a year. I want to be able to travel. I want to be a lifestyle entrepreneur.” Don’t scale if that’s all you want. If it is what you want, then you need to consider, “For what purpose am I scaling? Why am I doing it?” If you do it for the sake of, “I want to make more money,” I don’t think that’s a good enough reason to scale. If you want to scale because you’re like, “I need to have more capital so I can have better infrastructure, I can reach more people, I could serve more people. I need to scale in order to invest in better technology, to turn whatever I do and take it to the next step.” Those are all good reasons to scale, but just scaling for the sake of scaling, that’s a wrong focus. That’s a mistake.You eat what you kill. Click To Tweet
In order to scale, the first thing they need to look for is there needs to be a margin. For example, if the business is making $50 million, that’s a lot of money and it’s making $100,000 net a year. If you double that to $100 million, now they’re making $200,000 a year. That is not so good. In order to get to the next level, how many more employees do they need to hire? Maybe they need a new office, they need more equipment or whatever it is. The margin has to be there in order to scale. Most businesses, they’re what I call a one-product pony. They’ve only got one product. Let’s pretend you have a product and you’re selling it for $30 and your cost is $5. You’re making $25 profit per unit. Let’s pretend it’s an online business or some kind of product you sell through eCommerce. The most that you could invest to acquire a customer is $25 because that’s your profit margin. If you think about each sale that you make, you can spend no more than $25 to acquire a customer because $5 is your cost. You could only go to many channels or utilize many ways to acquire that particular customer, especially if you don’t get one product. It means they buy it once and they don’t have to buy again. That means you have to constantly market and get new people all the time.
Let’s take a look at a different scenario. Let’s say you’ve got not only one product, but you’ve got a product line or you’ve got different backend products that you sell to the same customer. Instead of selling a low ticket, you’re selling a high-ticket. You’re selling a $2,000 product and then you sell them another $5,000 product and you sell another $10,000 product or program. In that case, on average your annual value of a customer is instead of being $25 one time, it’s $10,000. In a percentage of the customers, they will buy the $2,000 program, they buy the $5,000 program, they buy a $10,000 product. Let’s say that’s the case. Now, it’s a very different game. Instead of only spending $25 to acquire a customer, you could spend $500, $1,000, $2,000, $5,000. It depends on the lifetime value of the customer. If the customer stays with me two to ten years, hypothetically their first year, I could spend up to $10,000. That gives me an edge over someone who only spends $25. Most entrepreneurs and business owners, when it comes to marketing, they want to go on the cheap. How can I spend the least amount of money to acquire the customer? In that kind of thinking and that kind of mentality, you will never be able to scale.
In order to scale, the question to ask is not, “How can I spend the least?” The question to ask is, “How can I outspend everybody else? How can I outspend my competitors? If my competitors can only spend $200 to acquire a customer and I can spend $2,000, I could go to many more channels. I could do many more things. I can test many different traffic sources in order to scale. That gives me way more options and that’s how you can scale fast. I can use this channel, I can use this platform, I can do offline. When my competitor cannot afford to go to any kind of offline marketing, I could because the lifetime value of my customer is high. Assuming that you’ve got your offers, your product line, you’re selling a high-ticket, your marketing done and you’ve got your traffic sources. Maybe you’re running ads on Facebook, Instagram or Google, whatever how many different ways you’re bringing in the leads. Let’s say you are bringing a lot of leads, your next bottleneck would be closers. Where do you find enough closers to be on the phone? When it comes to a high-ticket, anything that costs more than $2,000, $3,000, $4,000, $5,000 is very difficult to sell just on a webpage or through a video. You need someone to get on the phone one-on-one and close that particular prospect.
In order to do that, you need people. Where do you find those closers? In my case, what we do at our organization is we have now close to 100 closers closing our own program and product. That’s how we are able to scale quickly. It’s because we have the power, the people, the closers to able to close on the phone and take it much faster and much further. Most entrepreneurs when they do the marketing and they’re scaling the marketing, they’re like, “I need some closers.” They try to bring on one person and it doesn’t quite work and then try to bring on salespeople. It doesn’t quite work. They might try to run an ad and it doesn’t quite work. Then they finally find someone that works, but then that person’s appointment booked so fast. Now, they have to spend months to find another person in order to scale versus have access to so many closers. You need closers before you even scale. When you are in a position to round up your marketing, you’re good to go versus you try to round up your marketing. You’ve got to slow it down because you don’t have enough people to handle the leads. Every single time you do that delay, that time, that’s what’s preventing you from scaling to the next level.
Let’s say your Facebook ad is working, that’s great or webinar that’s producing leads. Because you don’t have enough people to follow-up on those leads, you have to lower the budget or you have to pause the ad. That’s the worst. When you’ve got something that’s working, then you’ve got to go find that person. If you have so many of these coming in, you can’t handle that business. You got to look at two aspects. One is the lead flow. The second is your fulfillment. If the fulfillment aspect where you are selling something that takes a long time to make, then it’s going to be difficult to scale. It’s difficult versus if you’re selling software. It doesn’t matter if I sell one, it doesn’t matter if I sell 500, it doesn’t matter if I sell 50,000, I can scale just like that. Yes, I need more customer support and I need more infrastructure but the product itself is infinite. That aspect of fulfillment is easier to scale. It will lead flow closers and then your fulfillment. Assuming you’ve got the fulfillment done, that’s okay. You can serve a lot of people doing the same thing. It is just in terms of traffic source and then in terms of closers. You don’t need closers. You don’t need to find closers when you need closers like yesterday.
The biggest problem is this. You are not going to find the salespeople that you want in a traditional way because I’ve tried it. If you want to find salespeople, maybe you go to any of these sites, any of these Craigslist or run an ad, “I’m looking for salespeople.” The problem is any good salespeople who are looking for a job, they’re not good salespeople. If they’re good salespeople, they won’t be looking for a job because any good salespeople are already making good money and they’re making good commissions. They’re not looking for jobs. That’s number one. Number two is you hire a salesperson very often. I tried this before myself. I paid them some base and then I paid them some bonus and they came close. Any good salespeople are like a hunter. You eat what you kill yet if you give them a base, you give them all of that, they are not hungry. Most salespeople, they want it safe. Although they’re supposed to be salespeople, they’re supposed to be hunters, they want the security and they can close. They become typical salary person within the company and then they are not motivated to bring in sales. I believe that a good closer needs to be commissioned based. The more they close, the more sell they make, the more money they make. That’s how it should. The sky is the limit.
They could make as much money as they want. They’re able to sell a higher price point, a high-ticket. You’re not going to find those salespeople in a traditional way. Another thing is if you do find a superstar and that salesperson is producing a lot of sales, that salesperson becomes your rainmaker. Let’s say you are doing $1 million a year and that person brings in $300,000 or $400,000 worth of revenue for the company. What happens is the salesperson would then either become greedy or they would jump ship and then they’ll go work for someone, or your competitor maybe, who will pay them a higher commission rate. That happens too. You always want to have more than one closer even though you might just need one to scale. You want to have multiple so then if one leaves, you’re okay, you’re fine. We have 100 closers working with us, it doesn’t matter. If one doesn’t work, we have 99 to replace that particular person. There are so many sales trainers out there and there are so many experts teaching sales and most of them are very good. I happen to specialize in one area of sales, which is high-ticket sales. If you want to learn cold calling, I’m not the guy you can learn from. There are plenty of people who are better at cold calling than I do.
I teach a little bit of cold calling to my students, but that’s not what I specialize in. I specialize in selling premium products and services to players with money. That’s what I do. When it comes to my methodology, it works very well in my area. When you find closers, how do you know they’re good? You won’t know until you give them an opportunity. However, if you know that they have gone through some type of training or you can role play with them and see like, “Roleplay with me. I’ve just got a product. Sell it to me. Sell me my program. I want to see how you talk to my prospect.” Give them different objections and see how they handle those objections, how they ask questions. Do they sound a typical salesperson? One of the things you have to consider is it is not just the closing sales that are making sales for you. Another thing you must pay very close attention is for those sales that they don’t make, are they pissing off the customers? Are they ruining your reputation? You don’t want your best customer, especially selling a high ticket, to get off the phone with one of your closers and they feel like, “I can’t believe I just talked to this slimy salesperson who tried to twist my arm, force me to buy this and that.” Suddenly the salesperson is ruining your reputation and relationship with the customers without you knowing it.What is a king without a kingdom? What is a kingdom without people? Click To Tweet
Whoever the closer that’s closing for you, you need to have that talk with them. What is your philosophy? I want you to get as much money as you could and close as many people as you could. I don’t care. Just get the money. Are you the kind of CEO entrepreneur who says, “I want you to offer my service, my solution to the customer if only it’s a good fit. If it’s not a good fit, it’s okay. Don’t force them. I don’t want them to get off the phone feeling that they need a shower. I don’t want them to get on the phone and never want to hear from us again. You burn the relationship?” What is your personal philosophy? That’s a key. In terms of what I do when people call me the king of high-ticket sales, it’s not necessarily because I’m the greatest closer to ever walk on this planet earth. What is a king without a kingdom? What’s a kingdom without people? I’m called the king of high-ticket sales not because of my skill, it’s because I have access to high-ticket closers than anyone else in the world. I’m more of an influence to high-ticket closers than to anyone else in the world. That’s what makes the king. That’s the difference. If you have got a funnel, you’ve got a quality product and service that’s a high-ticket and if you’re looking for closers, I have access to the closers.
You can book a time with one of my leaders who manage all my closers to see if it’s a good fit and to see if I have closers that would understand your offer or maybe have a little bit of experience in terms of closing in your industry. I’m more than happy to make the recommendation. There’s no charge because that’s how I work and that’s how my closers work. They don’t get paid until they close a sale. I’m more than happy to make that introduction. That’s what we do because I believe when you’re working with a client, a company, CEO or influencer, the relationship should be the more successful that you are, the more successful your closers are. That’s what I want to do. I want to provide earning opportunities and good potential programs for my closers to close. That’s what we do. That’s what drives me. If you’ve got something like that, I’m more than happy to set time to talk to one of our leaders and see how we can help.
In order to scale, you need to think of a triangle. You need three things only. You need a scalable offer which is an offer that you can deliver to a massive amount of people without more infrastructure. Maybe it’s a software or a digital product. It doesn’t matter if you sell to one person or 10,000 people, your work is essentially the same. You need a scalable offer and you need a consistent lead flow. It could be through social media, Facebook, YouTube, Instagram, pay-per-click or even infomercial. It doesn’t matter but a consistent lead flow and you need closers who can close. If you have those three things, you can scale. You need all those three things, but then you need to have the offer dialed in. You need to have your traffic source, your lead flow dialed in and every single time you add a new closer, it adds another $100,000, $200,000, $300,000, $400,000 on your revenue. You keep adding that and you take a lot of profit, reinvest back to that lead source, you scale so you get more leads and then you hire more closers. Before you know it, you’ve got a decent-sized business.