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Peel the Layers of Responsibility
People often avoid taking responsibility for their decisions by shifting blame onto external circumstances, others, or themselves. This process can be broken down into three primary layers: circumstances, others, and self. Initially, individuals cite factors like time and money to deflect accountability. As the conversation progresses, they may start pointing fingers at family members or colleagues. Ultimately, they may concede that it is their fault, but often only after much resistance. Recognizing these patterns can help identify where someone stands in their decision-making process. It's essential to discern whether a person is genuinely in power and capable of decision-making or if they are deflecting responsibility. Understanding the common excuses and scapegoats can equip individuals to confront their own barriers and encourage others to face their challenges head-on.
Transcript:
Alex Hormozi
They start with the outside, they blame circumstances, time, money, other shit. And then the step next to that, they start to blame other people, my spouse, my kids, my employees. And then finally they say like, it's me, it's my fault. And so you might have to overcome multiple layers as you peel back and based on the objection they give you, you can know where you're at, you can know how close you are. If someone just says I have to think about it and you're like, great, I'm talking to the person who's in power and decision maker and I just…
Resourcefulness Triumphs Over Resources
In challenging situations, the key to overcoming adversity lies in being resourceful rather than relying solely on available resources. Individuals often face dire circumstances where traditional support fails, yet this should not be an excuse for inaction. Self-made success stories highlight that many thriving entrepreneurs began with nothing and navigated obstacles by seeking unconventional solutions, such as asking vendors for help. It's vital to embrace a mindset of empowerment, recognizing that others have triumphed against similar or worse challenges. Success depends on the willingness to tap into one's ingenuity and determination to find alternatives, rather than succumbing to the limitations of current resources.
Transcript:
Alex Hormozi
The banks wouldn't do it and the next liners that they canceled on him and The company's gonna fold because he was growing too fast At that point he could have just given up and said there's Nothing I can do I back so all my cars and maxed out all my Banks, there's literally nothing I can do and his people already worked for free They're like we get dizzy anymore He went to his Vendors and said you need to pay my payroll for me. He went to his vendors. Anybody use landing page software? Anyone use something from a vendor? Right. It's like going to your videographer and you're like, listen, you've got to pay payroll for me this month. Because otherwise, I'm not going to be able to keep doing…
Embrace Change or Endure Pain
The extent of personal change is often dictated by the level of discomfort associated with remaining in an undesirable situation. While change inherently involves pain, the reality check comes when comparing the pain of maintaining the status quo against the discomfort of making a transformation. Individuals must recognize their own 'rock bottom,’ which varies in severity for each person, as a pivotal point in their journey towards change. The challenge lies in addressing whether current struggles are more intolerable than the effort required to alter one's circumstances. This self-assessment becomes crucial, as it propels one to confront their fears and take the necessary steps towards improvement.
Transcript:
Alex Hormozi
That way you spend your first four hours of the day, it makes your bank account look like what it does look like. Ooh. Right? Right? Taking steps. Right? We're getting closer to the truth. And so the thing is, is that it's going to hurt to change, because change hurts. And you've heard this one probably from Tony Robinson if you haven't. The question is whether the pain of staying the same is greater than the pain of change. That's why we just asked someone. And this isn't the help part. If someone's like, the pain of staying the same is not worse than the change, then girlfriend, gain 50 more pounds and come back. You know what I mean? Like, get there. Hit rock bottom. This isn't it for you. I'm being real. Some people…
Embrace Rock Bottom for Change
Recognizing personal 'rock bottom' is crucial for initiating meaningful change, as individuals must identify their threshold of pain regarding their current situations. For some, this may manifest at varying levels, whether it’s related to body fat percentage or weight. The discomfort of the present must outweigh the perceived challenges of change to motivate action. Additionally, employing hypothetical frameworks can be effective in overcoming objections and gauging commitment, such as asking individuals to rate their current satisfaction and discussing what would make it ideal. This reflective process encourages deeper engagement with the possibility of transformation.
Transcript:
Alex Hormozi
That's why we just asked someone. And this isn't the help part. If someone's like, the pain of staying the same is not worse than the change, then girlfriend, gain 50 more pounds and come back. You know what I mean? Like, get there. Hit rock bottom. This isn't it for you. I'm being real. Some people rock bottom is 12% body fat. Some people it's 500 pounds. But everyone's got one. You just gotta know where yours is. And all you really gotta do is just move what rock bottom is for you, which is kind of interesting. Because you start making a change here, which is kind of interesting as a thought. But are you in enough pain is the question you ask the person. So for those of you who are unwilling to make a change because it feels contrary to like, I…
Hypothetical Insights Uncover Truth
Using hypothetical questions uncovers underlying issues in discussions. Asking, 'If this were perfect, would you do it?' reveals participants' true sentiments and trust levels. A high score indicates acceptance, while a low one prompts deeper exploration. The focus shifts from program specifics to personal trust, which is crucial for advancing the conversation. This technique fosters openness and drives toward fundamental truths, effectively illuminating barriers to agreement.
Transcript:
Alex Hormozi
But the hypothetical, and there's lots of ways of phrasing this, which is like, you've probably heard the unicorn close, you've probably heard like, if this were perfect, would you Do it? On a scale from one to 10, where would this program be? If 10 was amazing and one was terrible, where is this? They say a number and you say cool, it would make it a 10. Why isn't it one? Like, you guys heard this scripting before? So you guys are like, no, please talk slower. The reason I said we have to learn the principles behind behind it rather than memorizing the script is that it all is based on one thing, which is hypothetical, which is, if this were Perfect, would you do it? Because you get a hypothetical agreement. And they say yes, if it were perfect. The thing is, if you're like, if this were perfect, would you do it? If someone says no, then you're like, girl, okay. Like, let's take five steps back. Does my breath smell? Yeah, because the…
Navigate Objections by Isolating Challenges
In situations where a spouse or decision-maker is unavailable, it's crucial to isolate their potential objections by focusing on the individual's concerns. Since the absent partner is not involved in the discussion, leverage the opportunity to explore what the individual thinks the partner might object to. This helps in addressing issues that are relevant to the individual rather than to the absent partner. Additionally, emphasize the idea that if the partner is unhappy with the current situation, they would likely support efforts to rectify it. This strategic approach allows for overcoming objections effectively by shifting the conversation to the individual's needs and concerns.
Transcript:
Alex Hormozi
But the spouse or decision maker is not there. Right? Now note for you guys, a lot of you guys have had the opportunity to go talk to a spouse, but a lot of you guys don't have that in your business, right? Like, spouse ain't there, and they leave, they're not coming back, right? Or they are, but very small percentage don't wait for it. Okay. So, what we have to do is try and sidestep it by isolating the objection and casting aside the partner, because the partner's not there. So, how could they object to anything? They don't even fucking know who you are, right? And so the idea is, and again, this is assuming, if you have a really long-term thing, then you want the partner to be there, right? Like ideally, that's what you have.…
Empower Yourself: Seek Support, Not Permission
Support for personal goals is crucial, and one should prioritize their own aspirations without seeking permission from others. If significant others would expect support for their dreams, individuals must likewise advocate for their own objectives. Failing to do so often leads to resentment in relationships, as unmet personal goals can result in blame directed at partners. To avoid this, it’s essential to communicate the importance of personal development and seek community support, much like professionals in various fields pursue education for their growth. This acknowledgment of individual responsibility promotes healthier relationships and personal fulfillment.
Transcript:
Alex Hormozi
Well if the rules were reversed, and your husband needed this to make what he wants, his dreams happen, or your wife needed this program to make her dreams happen, would you support her? Then why wouldn't you support you? Right? Right. And this is the kicker, this is for everybody, is that you're asking for permission instead of support. Because it is your life, not theirs. And what happens is, if you give that power to them, and then two years from now, you're still fat, you're still poor, whatever it is, who are you gonna blame? Them. And so that's when you have a resentful marriage because you didn't own your shit. And so I'm not saying you shouldn't like, explain the decision to them. But the way you explain it to them is what I just…
Support, Not Permission
Encouraging individuals to pursue their goals requires emphasizing support rather than seeking permission from others. A humorous approach in sales can help clients visualize their ambitions, dispelling fears of judgment from partners or family. Offering safety nets, like a three-day guarantee, creates comfort and reduces pressure, ultimately enabling clients to make proactive choices for their health. This strategy underlines personal responsibility in striving for one’s dreams and highlights the importance of having a supportive environment to combat self-doubt.
Transcript:
Alex Hormozi
And if that is the thing, then you have to let them step into that. And that's where, you know, having, that's where like, a three day no spot guarantee or something like that is also helpful. It's like, hey, sign up. And I use, I use a lot of rapport and humor in my selling. And so I'd be like, hey, Cindy, if you sign up and you tell your husband and he's upset, you have, and when he sees you, he's like, girl, I don't want you getting shaped. I want you to stay overweight. I want you to put those sweatpants on. I want you to sit on that couch, reach your hand in a bag of Cheetos, put the Cheetos fingers on there. I want you to create generational unhealth. I want you to live 10 years less long. I want you to see our grandkids. I don't want that. Right? I want to marry a younger, better you sooner because you're going to have a heart attack. If he says that to you,…
Support, Not Permission: Own Your Choices
Prioritizing personal health is essential for long-term well-being, and it requires a supportive environment rather than seeking permission from others. Relationships should encourage individual growth and not foster insecurity or unhealthy habits. Avoiding personal responsibility can lead to blaming others for unfulfilled dreams, emphasizing the need for proactive decision-making. Time is always a constraint, but the ideal moment to act is today, as procrastination leads to ongoing busy-ness. Financial concerns should not deter investment in health, as the value gained from such investments ultimately outweighs the cost. Taking control of health choices leads to a more vibrant life.
Transcript:
Alex Hormozi
I want you to sit on that couch, reach your hand in a bag of Cheetos, put the Cheetos fingers on there. I want you to create generational unhealth. I want you to live 10 years less long. I want you to see our grandkids. I don't want that. Right? I want to marry a younger, better you sooner because you're going to have a heart attack. If he says that to you, you have them calm and then they're like cracking up and you're like, okay, okay. Listen, sign up. Three-day no sweat. Like, if he does tell you that he just wants you to be out of shape and never leave him because, uh, because he just wants you to get too hot because he's insecure. If he says that, yeah, just let me know. All right? So like the whole time you're just joking…
Decisions Are Ongoing Journeys
Effective decision-making involves recognizing that the choice is often a culmination of long-standing considerations rather than a sudden resolution. Using frameworks centered on time can help clarify the decision-making process. By dissecting decisions into past, present, and future, one can articulate that what feels like a rapid choice is often the result of years of contemplation. Coaches serve not by dictating decisions but by enabling individuals to understand their logic and reasoning through frameworks rather than scripts, allowing for clarity in decision-making.
Transcript:
Alex Hormozi
All right Avoidance so now they're like, wait a minute, what do you think about? So, now that we've exhausted, and I'm putting this as emphasis, we've exhausted all outside reasons. Now we're finally talking to someone in power. And that is what a good coach does. We don't make decisions for people. We help them make decisions. So here is what I have to think about it. Not sure. Give me a hand. Who's dealt with somebody who thinks that way? All right. Least one person. You guys are great. So this is how I divide this up. Past, present, future. And so hopefully this should already, before I dive into these, give you simple frameworks to work through. Time. You've got macro, micro, when, then. Right? You've got value. You're thinking about, it's not a lot of money, even if it were a lot of money, it's not a lot of money, you're gonna pay for it either…
Decisions Are a Journey, Not a Sprint
Understanding decision-making involves recognizing the time investment already made towards a goal. People often perceive decisions as rushed, but it is essential to highlight the lengthy process that precedes such moments. Utilize frameworks for analysis, focusing on macro and micro aspects of value and timing. Emphasize the importance of acknowledging past efforts, which can counteract feelings of haste. Remind individuals that decisions are often built upon a foundation of prior commitments and actions, minimizing misconceptions about urgency and reinforcing the significance of their choices.
Transcript:
Alex Hormozi
You guys are great. So this is how I divide this up. Past, present, future. And so hopefully this should already, before I dive into these, give you simple frameworks to work through. Time. You've got macro, micro, when, then. Right? You've got value. You're thinking about, it's not a lot of money, even if it were a lot of money, it's not a lot of money, you're gonna pay for it either way. You have the simple frameworks that you can walk through. You might just hit them with one, and if they hit it with again, hit them with the other angle. Because they're logical frameworks, they're not scripts. That's why I made them bubbles. You don't have to memorize it, just gotta understand it. Past. So I need to think about it. And so the thing is, and the first bubble there is, if someone's like, I feel like this is happening so…
Embrace the Journey, Not Just the Destination
Decision-making often feels rushed, but true decisions are products of long contemplation and commitment. The myriad of actions taken to reach a pivotal moment, like booking a trip or seeking change, signifies ongoing decisions made over time. Recognizing and challenging the fears surrounding these decisions can help overcome reluctance. Asking probing questions about fears can elucidate concerns and pave the way for a more confident choice. Ultimately, acknowledging the investment made in the journey encourages a more decisive action towards goals.
Transcript:
Alex Hormozi
You don't have to memorize it, just gotta understand it. Past. So I need to think about it. And so the thing is, and the first bubble there is, if someone's like, I feel like this is happening so fast. And we'll get that one. I just got on the phone with you, I don't really know who you are. And you're like, hey, this is not a fast decision. Right? You've been making the decision for the last six years. You continue to make the decision. All we're doing to say is deciding you're actually going to do something about it. Right? How long you wanted to lose weight? A long time. So this is not a fast decision at all. But the thing is, is that, and this is where you go some cost. So if I were talking to you guys, I would say, you bought tickets because you saw some ad. You registered there, you got your flights, you got a hotel, you blocked the time, you flew…
Fear Can Hold You Back from Success
Determining the true source of fear is crucial in decision-making, particularly in sales. Identifying what potential buyers are afraid might happen can help address their concerns more effectively. Often, the worst-case scenarios envisioned are exaggerated and not representative of reality. Exploring these fears leads to valuable insights, allowing for constructive conversations that alleviate hesitation. Additionally, it's important not to let past negative experiences dictate future decisions. A failure to act due to a previous poor choice results in missed opportunities for growth and success. Overcoming such obstacles requires a recognition that a bad decision should not preclude one from pursuing beneficial options.
Transcript:
Alex Hormozi
You're six inches from gold. This isn't a fast decision at all. You did all these things to get here because it's important to you. So don't let that distortion stop you from getting what you want. Right? It's fear. Right? Let's face that. What are you afraid of having happen? Which by the way, I took the slide out. But my two favorite questions to ask in a sale that I feel like are the fastest to cut through, is what are you most afraid of having happen if you buy? What are you most afraid of? What's the worst thing that you envision in your mind? And if they're not sure, I just fill in the blanks. I'm like, I take your credit card, I swipe over as much as I possibly can, I go to Vegas, I put it…
Don't Let Past Mistakes Define Future Opportunities
Avoid the trap of allowing a past negative experience to hinder future potential. Acknowledging that a poor investment or decision should not prevent you from pursuing beneficial opportunities is crucial. It's essential to distinguish between the variability of experiences, similar to having a bad relationship in youth, and recognizing that not all options are the same. Instead of letting one setback define your stance on future investments or relationships, approach each one with an open mind, understanding that there are both good and bad options available.
Transcript:
Alex Hormozi
I'm like, I take your credit card, I swipe over as much as I possibly can, I go to Vegas, I put it all on black, and then I go to Monaco where they can't extradite me. Fair enough? And they're like, I was not thinking that. And you're like, right. So what's the worst, you know, like what's the real thing? And then they're like, you know, I just have bought so many programs before. You're like, right, let's talk about that. And so I'm gonna skip one forward and then I'm gonna go back to it. This is one of my favorite obstacle or objection overcomes. It's, I call it, don't let it burn you twice. And this literally, you can see the date, it happened yesterday. This girl texted me, or missed April 6th. She said, it's crazy to think that I had a sales call with you six years ago and I'm kicking myself in the butt for not jumping on, this is…
One Decision Can Transform Your Life
Experiencing a negative interaction, whether with a coach or a specific program, should not dictate future decisions or perceptions. It’s crucial to recognize the distinction between the many options available, as not all coaches or programs are the same. A single bad experience can cloud judgment, preventing individuals from seeking out beneficial opportunities. It's essential to acknowledge that the necessary actions for progress must be taken regardless of prior setbacks. Embracing a willingness to make decisive choices can lead to improved outcomes. Reflecting on past hesitations in decision-making may reveal the need for change, affirming that one significant decision can indeed alter the trajectory of one’s life.
Transcript:
Alex Hormozi
Help me out here. Okay. It would be like having a bad eighth grade boyfriend or girlfriend and being like, you know what? Men aren't for me. All coaches suck, right? There's good coaches, there's bad coaches, there's crazy-ass bitches, and there's crazy-ass dudes. You know what I mean? Like, there's also good ones. And so things, if you stop, if you let the bad one prevent you from the good one, you get burned by being with the bad one, and because you let the bad one control your next decision. Right? And so when someone has had a bad experience with doing keto, wherever the fuck, right? Or you had a bad experience with some program that you did or did not do or they didn't fulfill whatever,…
Decisions Demand Information, Not Time
Making decisions does not require additional time; it requires actionable information. People often misinterpret the need for time as a necessity for gathering more data, when in reality, they should engage with the available information to make informed choices immediately. Life's distractions will continue, leading individuals to confront their decisions later under pressure, often resulting in regret. This highlights the importance of recognizing one's sources of information and confronting decisions promptly, particularly by assessing whether a product or service aligns with personal goals.
Transcript:
Alex Hormozi
You're not gonna go home, sit in the rocking chair, smoke a cigarette, because of course, you're not healthy yet, right? You'll quit when you're healthy, right? You're smoking your cigarette, and you're like, hmm, am I gonna do this weight loss program? You're gonna sit there and just stare into the clouds, like, I wonder. No, of course, now you're getting your car, and then you realize you gotta pick up Timmy from soccer practice, you gotta get groceries, you gotta cook, you gotta clean, you gotta pick Up, you know, go to the laundry, gotta do all these things, right? And then three, four, five days from now, you're gonna put on that old pair of jeans and it's not gonna fit and you're like, fuck. And just there, you'll have made the decision. You'll keep living your life. And so let's just make it now. Because the…
Embrace the Risk to Achieve Success
Change is essential for growth, and assessing your options logically allows you to make informed decisions. You face three potential outcomes: taking action and achieving results, not taking action and missing out on opportunities, or taking action yet failing to see results. The only truly risk-free option that guarantees stagnation is inaction. Therefore, choose wisely between the risk-free action that could lead to your desired outcome and the guaranteed failure of doing nothing. Additionally, emphasize the urgency of taking action. Acknowledge the real struggles people face and encourage them to move forward rather than remaining indecisive. Starting now allows individuals to reap the benefits of their efforts sooner.
Transcript:
Alex Hormozi
No, you gotta change the change, let's do it, Right? And then you go right into let's consider the options. Which is like, this is logic. Right? So let's consider the options. Option one, you do the thing, you get the result, life is awesome. Option two, you don't do the thing, you don't get the result because you didn't do the thing. Option three, you do the thing but then you don't get the result. All these are the options that can happen. In front of you. Because we have a guarantee, they're all risk-free, except for one of them. Only one of them has a true guarantee of not getting you where you want, which is walking out the door. So which risk-free option do you want? The one that's…
Choose Progress Over Perpetual Delay
Opt for risk-free choices that enable potential success rather than those that guarantee stagnation. Leverage logic in decision-making, encouraging a sense of urgency by highlighting the futility of indefinite hesitation. Prompting individuals to consider starting their journey towards goals, such as weight loss or business success, sooner rather than later can cultivate motivation. Reframe the decision-making process by focusing on how choices contribute to or detract from achieving desired outcomes, emphasizing that consistent, positive decisions lead to eventual success.
Transcript:
Alex Hormozi
So which risk-free option do you want? The one that's risk-free that guarantees that you're not gonna get there, or the one that's risk-free And has the potential to get you where you want to go Right That's not an emotional Close. It's logic and if you have an offer that's set up that way you should be able to close most people as Long as they don't think you're an asshole, right? Okay This is one that's more around urgency because again, this is avoidance if someone says I I'm still not sure, I want to think about it more, whatever, you say, well, you're not going To struggle forever, right? Like, you don't want to struggle forever. You're going to do something about this, whether it's weight loss, business, whatever. They're going to say yes. You're like, well, if you're going to fix your business eventually, you might as well start fixing…
Embrace Your Chains to Break Free
The obstacles and self-imposed limitations that hold individuals back are often the very motivators needed for growth and change. Recognizing the reasons for hesitation—like lack of time or over-dependence on others—can serve as a catalyst for taking decisive action. By confronting and breaking these chains, individuals reclaim their power and agency. Ultimately, true empowerment comes from making proactive choices rather than allowing circumstances to dictate life. Success requires calculated risks, with the journey often starting from a position of limited resources and courage.
Transcript:
Alex Hormozi
It's just you. All right? And here's bonus number six, and you can use this as one of, like, there's some closes that you use all the time, you always go back to, right? The reason you are telling yourself not to do this is the reason you need to do it. How long do you want, I can't afford this to be on your list of problems in life. The fact that you don't have time is the very reason you need to do this. The fact that you're so dependent on your spouse is the reason you need to take this decision and own it. Right? The fact that you're not sure about the person that you want to be is the very reason that we're going to help you get it in this program. So whatever the reason is, is usually the biggest chain that you're holding on to, is the thing that you're enslaving yourself to is the thing that you're casting your power to. If you…
Break the Chains to Reclaim Power
Breaking free from the chains that hold you back empowers you to take control of your life and decisions. Often, the very reasons for self-imposed limitations are the catalysts for growth. Embracing risk is essential for fortune creation; great wealth is built through calculated risks, particularly when starting with limited resources. Furthermore, investing in personal education, skills, and experiences yields superior returns compared to traditional financial investments, as these cannot be stripped away by external circumstances.
Transcript:
Alex Hormozi
So whatever the reason is, is usually the biggest chain that you're holding on to, is the thing that you're enslaving yourself to is the thing that you're casting your power to. If you break that chain, power comes back to you. And so the very reason that you're holding yourself back is typically the very reason that you need to do it. So hopefully, this helps you realize that you and your clients are always in complete power. Did I accomplish that? Awesome. And like I promised at the beginning, my hope is that you become more powerful by making decisions rather than letting life make them for you. All right? So here's a few final thoughts. Fortunes are created by taking a lot of risk with a little bit of money. Fortunes are maintained by taking a little bit of risk with a lot of money. And every one of those people that was self-made takes a lot of risk with a little bit of money. And…
Invest in Yourself: Build Your Bridge to Success
Investing in oneself is the only secure investment, as it can never be taken away and only increases with time. Each skill gained represents a brick in a bridge leading towards personal and professional goals. Progress is made one skill at a time, building upon previous knowledge sequentially, much like the progression of academic subjects. Consistently asking whether a decision brings you closer to your aspirations is crucial. Continuous development is vital; striving for improvement ensures eventual success. Acknowledging that the responsibility for change lies solely with oneself empowers individuals to take charge of their own journey, crafting their identity through the choices they make.
Transcript:
Alex Hormozi
And so why would you not invest in the one thing that can never be stolen, can never be taken in compounds with time? And it increases your capacity to make money, increases your capacity to live. And so I like to think of the investments that I've made in myself as bricks on a bridge. And so if I'm on the bottom left here, and where I want to be is the top right-ish, right? Looking like the nightmare before Christmas now. There are many skills that it takes to cross the bridge, right? And just like you have an arithmetic teacher in high school, once you learn calculus, you're not like, that guy was a load of shit. Calculus is what... No, you have to learn things in sequence. Right? And so the thing is that we…
Build Your Future Brick by Brick
Success is a gradual process that relies on building skills sequentially, much like progressing through educational levels. Each decision made serves as a vote towards the person you aspire to become, requiring intentionality in choices. The path to advancement involves leveraging the experiences of others; by learning from their mistakes, you effectively buy time and accelerate your own growth. Acknowledging that many lack the knowledge to create significant income reveals a critical gap - ignorance can be a costly barrier to achieving financial goals.
Transcript:
Alex Hormozi
Looking like the nightmare before Christmas now. There are many skills that it takes to cross the bridge, right? And just like you have an arithmetic teacher in high school, once you learn calculus, you're not like, that guy was a load of shit. Calculus is what... No, you have to learn things in sequence. Right? And so the thing is that we build this bridge, it's one brick at a time. And I always come back to the same question, which is, is this going to get me closer to where I want to go? I don't need it to get me there. I just need to get closer. And if I get better, I'll get there eventually. As long as I don't stop moving. And so that's why that's what I've dedicated my life to education. My mission is to document and share the best practices of building world-class companies. Because when you realize that you are the source, you realize that Superman is not…
Invest in Knowledge to Escape the Time Tax
Every decision is a reflection of who you aspire to become; therefore, you must ensure your choices align with your goals rather than reinforce the status quo. Rapid progress stems from leveraging the experiences of others, allowing you to 'buy time' by learning from their mistakes. The ignorance of not knowing how to generate wealth directly impacts your potential earnings, making it crucial to invest in your personal and financial education. Such investments increase your income capacity, with long-term returns that can significantly amplify your wealth. Ultimately, the unseen cost of ignorance, termed the 'time tax,' is far more significant than any financial tax, emphasizing the necessity of prioritizing knowledge acquisition to avoid substantial lost opportunities.
Transcript:
Alex Hormozi
It's just you. And every decision that you make is a vote towards or against the person that we want to be. And so the question for you is that are your decisions voting towards the person that you want to become or just more of what you already have? And so people ask me all the time, how do you move so quickly? And the answer is I know how to buy time. And the follow-up question is how do you buy time? You buy time by buying the time took other people to make mistakes that taught them the lessons. That's how you do it, right? That's that's the heck. And so right now, the ignorance of not knowing how to create a million dollars a year is…
Invest to Eliminate Ignorance Tax
Not knowing how to generate substantial income is a significant financial liability, equating to a 'time tax of ignorance.' This loss underscores the importance of investing in education and experiences that enhance one's skills and capacity to earn. By continuously expanding knowledge and expertise, individuals can effectively increase their income potential and eliminate the costs associated with ignorance.
Transcript:
Alex Hormozi
The fact that you don't know how to make a million dollars a year is costing you a million dollars a year. Think about it. And so therefore, you should always be willing to invest money to increase the capacity for your income. Because once you have it, that capacity pays you forever. You're increasing your ability. Does that make sense? We're widening the pipe. And so when I thought about this, I just added zeros to it and I was like, it's fucking costing me a billion dollars a year not knowing how to make a billion dollars. God! Right? But it's true because the thing, the number one tax that no one appreciates or no one respects is not the tax of the government, it's not capital gains, it's not income tax, it's the time Tax of ignorance. Someone asked lately yesterday, what's the number one thing that people from zero to 10K are messing up? You don't know what the fuck you're doing. That's what's messing you up. You're ignorant. You have no idea. You're eating an orange like an apple. No clue, right? And…
Invest in Knowledge, Confront Reality
Ignorance is the primary barrier to progress; it is not a lack of capability but a lack of understanding. To overcome this ignorance, prioritize educating and investing in experiences that enhance skills. Take decisive ownership of your growth and challenge false beliefs that distort reality. Recognize that external solutions will not resolve your issues; true advancement comes from personal effort. Embrace opportunities that arise, as they lead to either winning or learning, both of which propel you toward your goals.
Transcript:
Alex Hormozi
You don't know what the fuck you're doing. That's what's messing you up. You're ignorant. You have no idea. You're eating an orange like an apple. No clue, right? And it's not because you don't have the processing power. It's not because you don't have the ability to reason. It's because you just don't know. And so the goal is to pay down the time tax of ignorance as fast as humanly possible. The only way you do that is by educating and investing in yourself. All right, specifically investing in experiences that build skills. So make the decisions to help yourself, implement like crazy, take ownership because we just discovered that all the other shit is not real, is literally a distortion of reality, that Anything that you give your power to that's not you, is fake. You're making it a false god in your life, and your prospects are too. And now you know how to confront those when your mind tries…
Commitment Ignites Transformation
Unwavering commitment serves as a catalyst for personal and professional growth. An unexpected invitation to a mastermind group, despite financial hesitations, led to significant learning opportunities among peers in the fitness industry. Engaging with like-minded professionals shifted perceptions and fostered the adoption of new traits, ultimately laying the groundwork for future success. The initial mentorship provided a necessary push, emphasizing that sometimes the value of an experience lies not in immediate outcomes, but in the progression it enables towards achieving larger goals.
Transcript:
Alex Hormozi
And I showed up without notice and he was like, you're a psychopath, I just met you on the internet. And I was like, I'm here, I'm ready to learn. And he was like, I'm going to lunch. But right after he came back from lunch, he was like, alright, so you should join my mastermind. And I was like, I don't have a gym. And he's like, that's okay. He was a gym mastermind. And I didn't, I mean like I was 22. Like I did not have a lot of money. And he was like, well, it's 10 grand. And I was like, don't know. And he's like, you need a fucking commitment. He's like, you've been waffling back and forth. I had had multiple phone calls with him before I left. He's like, I think you need to draw a line in the sand. And thank God he did. Because I did take a step over. I had no idea what the fuck I was doing. But I was trying to start paying…
Maximize Success Through Commitment
Achieving high sales success hinges on three critical responsibilities: maximizing opportunities, converting leads effectively, and maintaining consistency over time. The most successful salespeople tend to work the longest hours, as they are available when prospects are, which often includes weekends. Thus, a dedication to working extensively enhances the quantity of leads a salesperson can pursue. This commitment allows businesses to schedule numerous appointments and gain insights into effective sales practices across various industries.
Transcript:
Alex Hormozi
The mastermind I got from Sam is not what made me $100 million, but it got me on the right path towards making it. Over the years of having hundreds of salespeople work for me, I've seen these nine things that the best salespeople do differently than everyone else. And so if you boil it down, a salesperson has three jobs to do. They have to maximize the number of opportunities they have, they have to convert the highest percentage of those opportunities, and, and this is the important part, they have to do It consistently for a very long period of time. And so the nine things they do differently will fall elegantly into each of these three buckets. Let's start with the first one, which is maximizing leads or maximize the number of opportunities that a salesman has. So right off the top, I've never seen a salesperson who does the most in a company have the lowest amount of…
Maximizing Sales Through Availability
Sales success is closely tied to the number of hours worked; those who invest more time typically close the most deals. To maximize opportunities, salespeople must align their availability with prospects' schedules, sometimes necessitating longer hours and weekend work. An analysis of extensive appointment data reveals that the primary factor driving sales is availability — the more time slots a salesperson has, the higher their potential sales. Strategic adjustments, such as optimizing response times and communication techniques, further enhance throughput in sales processes.
Transcript:
Alex Hormozi
So right off the top, I've never seen a salesperson who does the most in a company have the lowest amount of hours worked. I've yet to have it. And you know what, maybe there's a special snowflake out there, but every company that I've owned, and every company that I've looked at, the guy who works the most hours is the one who Sells the most deals. And so, maximizing opportunities comes in a number of different forms. So number one is that they have the total most hours available per day, because you should be available when the prospect is available. And that means sometimes working long hours, it sometimes means working weekends. And yes, businesses also pay rent on Sundays and so you can make sales on Sundays. So my software company, Allen, scheduled 4,000 plus appointments per day across a number of different industries. And so we…
Maximize Selling Potential with Dual SOPs
Successful salespeople adopt a dual approach to their standard operating procedures (SOPs), utilizing an 'on-the-call' SOP for engagements and an 'off-the-call' SOP for maximizing productivity between calls. The absence of a structured off-the-call SOP leads to missed opportunities, as sales output is closely tied to the volume of prospects being managed. High-performing salespeople actively maintain their engagement pipeline by systematically following up with prospects and ensuring they never leave a conversation without scheduling the next interaction. This proactive approach, encapsulated in the principle of 'Book a Meeting from a Meeting' (BAMFAM), prevents prospects from falling into indecision and keeps the sales cycle moving forward.
Transcript:
Alex Hormozi
But if I say, you know what, Sunday afternoon I'm free, I'll have all the time in my world, I'm gonna have zero urgency to get off the call, I'll listen to you, and I'll be in a completely Different zone, and that might be when I'm in receiving hands in terms of prospect brain mode for buying. And so one of the things that the best sales people have, and this is something that companies should provide, but often don't, is that you have two SOPs, meaning standard operating Procedures. You have an on-the SOP, which is what you say when you're talking to prospects, and they have an off-the SOP, which is what you do in between. The vast majority of companies don't have an…
Always Secure the Next Connection
Successful salespeople ensure that every call ends with a clear plan for the next interaction, preventing prospects from falling into uncertainty. They proactively resolve any scheduling obstacles during the call, emphasizing the urgency of addressing the prospect's concerns. By questioning the cost of inaction, they highlight the importance of a timely solution. Additionally, effective salespeople do not take rejection personally; they engage in higher volumes of outreach and follow-ups, correlating their efforts with increased conversion rates. Their persistence allows them to work leads more diligently than less effective sales representatives.
Transcript:
Alex Hormozi
One of the things that we do across all our companies, and I learned this acronym from my friend Charon, BAMFAM, which is Book a Meeting from a Meeting, which is that the best sales people Never finish a call with a prospect, not knowing when the next time they're gonna talk to the prospect. So that prospect should never fall into no-man's land. They should never fall between the cracks, where they're like, I don't know. And so if you get to the end of the call, and they're like, yeah, let's connect offline, and we'll circle back up and we'll find another time. No, you have to address it at that time because if for whatever reason, a time obstacle is still an obstacle and you can resolve it right then. You both have your calendars up, you can both make the decision. If…
Preparation Breeds Opportunity
Maximizing sales success requires diligent preparation and personalized outreach. Salespeople should increase their productivity by optimizing their schedules, using personalized communications, and offering small incentives to ensure potential clients attend meetings. For effective engagement, a strategic approach to research is vital; dedicating time to preparation correlates with the length of calls—10% of call time should be invested in research to significantly enhance performance. Understanding clients’ preferences and demonstrating genuine interest before meetings can lead to higher attendance and better opportunities to close deals.
Transcript:
Alex Hormozi
So now we have a salesman who has the maximum number of hours, the maximum number of days, they're pulling up appointments so that their time on call, closing with the best people is maximized. They're following up before, they're following up after, they're doing personalized reach outs and saying like, hey, voice memo, hey, video, hey, I've got this thing for you that I've got set up for the call. What size shirt do you want? I've set aside a thing here, it was one of the things we did at the gym. Hey, what color shirt do you want? Hey, what boxing gloves? Hey, what? You do a tiny little thing. Hey, I've got three gift cards here. I got one for Amazon, one for Starbucks, and one for whatever. Which one do you prefer? Right? You ask a preference question prior to the call, and…
Preparation is Key to Successful Outreach
Successful outreach requires thorough preparation and research. By not merely collecting contact information but also piecing together a comprehensive profile of potential clients, one can tailor their approach effectively. This method involves analyzing social profiles, understanding client needs, and formulating potential solutions before any conversation. Such preparation allows for a more engaging and confident connection that demonstrates genuine interest and expertise, ultimately leading to better results in client interactions.
Transcript:
Alex Hormozi
Right as I started selling gym owners rather than weight loss when I was selling my turnaround business, I started getting leads but I didn't have any like methodology. So like I had a web it didn't work, and so I just started finding people on Google using their emails. And so I'd find their social profiles and I'd literally have to piece together a profile of who this person was because the only thing I was collecting was an email for this webinar. And so I'd find three or four social profiles and then I would connect with them and I would do some research so that I could make my reach out and not look sketchy as hell. And so when I would do my reach out, I would have all this data that I put as almost like a little profile together about them. And so when I hopped on the phone they were like, whoa, like you know a lot about my gym. And I was like, well, yeah. And I saw that…
Educate to Engage: The Sales Approach
Align with the prospect's previous experiences to facilitate their decision-making process, rather than criticizing their past choices. By understanding what the prospect liked and disliked, a salesperson can position their offerings more effectively. Focus on educating the prospect, allowing them to draw conclusions about the product. Always ensure to provide accurate information and only ask for a sale when confident in the outcome. Use pattern recognition to sense hesitation and adjust the conversation accordingly, asking probing questions to uncover concerns rather than pushing for the sale prematurely. Vary the conversation's tone and approach to maintain engagement.
Transcript:
Alex Hormozi
And then I could spend the rest of my time trying to do the real education stuff. And so I wanted to simply align with where they were coming from to get them to make the sale. And so that was why I started asking, what have you done before? What did you like? What did you not like? Rather than picking apart the things they did, and then be like, I actually really liked that about that other thing. Lost the sale. Only takes a few times of doing that to be like, I'm gonna shut the fuck up, and just let them tell me what they liked and then I'll say we're like that and not like that. And so the whole concept here is you want to educate the prospect so that they can come to their own conclusion. And so the only gaps that you're filling is hard…
Conciseness is Key to Maximizing Sales
Sales professionals often expand their scripts by adding unnecessary elements based on positive reinforcement from past experiences, such as coughing or extra questions, without realizing these additions may be irrelevant to closing a sale. This trend leads to longer sales calls, which ultimately reduces efficiency. The best salespeople focus on being concise to maximize their sales opportunities within a given timeframe. Effective sales management involves daily rehearsals and role-playing to refine specific parts of the sales script, helping salespeople overcome their discomfort with practice and improving their overall performance.
Transcript:
Alex Hormozi
And then the person closes, and so they get reinforcement for coughing. And so the next sales call they take, they add a cough in, and whether that person closes or not, they're like, well, it worked on that other one. And so all of a sudden, they add coughing in right before they close. Now, the next time, on the time that they close, let's say on their fourth call after this, they also added a second question in before the close. So they add the second question in, and then you see where this happens, is that they cough and add a second question to every single call that they do. And by doing this over time the length of the script and the length of the things that sales people do continues to expand because they get positive reinforcement. But the reality is that that person…
Navigate Decision-Making Challenges
Understanding decision-making dynamics is crucial for overcoming objections in sales. Recognize that external factors, such as time and money, often serve as easy scapegoats for inaction. Identifying the decision-making hierarchy—beginning with external influences like family and colleagues, then moving to personal doubts—can clarify obstacles. When a prospect indicates they need more time, see this as an opening to engage further. Successful salespeople leverage storytelling and metaphors to dismantle objections and facilitate decision-making, ultimately guiding potential clients toward resolution.
Transcript:
Alex Hormozi
The next is gonna be other people, it's gonna be my wife, my employees, my kid, my business partner. Somebody else has decision-making authority. And the third is going to be myself. Somebody who themselves doubts that they can do it or that they will be successful or that it's the way they want it to be done. The good news is that most of the time when you're diffusing these bombs, they start with the outside because time, money, fit, is what I like to call it, are things that are really easy To cast blame to. And it's almost a response. It's like they don't have to think about it. Like, I don't have time. I don't have the money. I don't have the card I want. Like, I don't have the, you know, whatever. If they talk about an authority figure, then it means that like I would do it, but this person's in the way. And so…
Embrace Support for Sustainable Success
Starting strong during busy times provides essential support for maintaining progress later when life slows down. Many individuals hesitate to take risks or make commitments due to fear of failure, often creating excuses related to time. It's crucial to clarify upfront how much time they can realistically dedicate to objectives, whether it’s for an SEO project or fitness goals. If they later claim they lack time, it’s important to understand what changed. Tone plays a significant role in these conversations, especially when urgency increases. Establishing rapport at the onset is vital, as it helps navigate sensitive discussions and facilitates clearer communication.
Transcript:
Alex Hormozi
It's like, okay, well, then you should probably start when you're busy, that's what I'm going to be giving you the most support is now so that when you get to the free time, it'll be easy Coasting. And when you get busy again, you know how to stick with it because you had the support. Right? And so again, it's like you have to be able to dismantle these things as you understand all of these, there's a fundamental underlying fallacy of giving away power to something else Because people don't want to make mistakes. They don't want to fail. And so they come up with all of these excuses. They come up with time. They say like that's the seasonal thing. You can have time in terms of the micro, which is, I don't have time in my day. I'm like, well,…
Confront Challenges Early in the Sales Process
Effective salespeople prioritize confronting difficult questions and concerns head-on, rather than allowing potential objections to fester. By addressing uncomfortable topics early, such as financial worries or opposition from stakeholders, sales professionals can guide the conversation and help clients navigate their fears. This proactive approach ensures that objections are not postponed until after a price is presented, minimizing the risks of an explosive reaction later in the sales process. A suggested technique is to directly ask prospects about their fears and explore the potential outcomes together, promoting a collaborative resolution to concerns.
Transcript:
Alex Hormozi
And then you get the real stuff because guess what? Closers ask hard questions, right? And they're the questions, it's the place where you don't want to go versus where you need to go, which is you want them to diffuse the bomb in front of you, not when they get home, right? And so you don't want them to sit with the decision, you want them to confront. It's like you might be wondering, this is a lot of money, let's talk about it. You might be wondering if your husband's gonna be against it. Well let's talk about some reasons that he might not be against it. Let's talk about what your business partner will say if you buy this without their permission. Let's talk about that. And so you wanna confront those ugly things. Because you're not, if you take…
Confront Fears to Transform Decisions
Encourage decision-making by confronting fears through a worst-case, best-case scenario analysis. This method detaches emotions from decisions, revealing that many uncertainties can end in outcomes similar to past experiences, ultimately providing a sense of safety. Emphasize the importance of asking for the sale multiple times, particularly after addressing concerns or objections. A proper follow-up increases the chances of a successful sale compared to a single ask, ensuring a thoughtful approach to closing deals.
Transcript:
Alex Hormozi
And I was like, but let's be real. I was like, have you ever bought anything in the past that you weren't sure you could afford? I was like, and where are you now? You still survived, you're not on the couch, right? I was like, we always make it work in the end, right? And you have to cut somewhere else. I was like, this is something that's gonna last with you forever. Like, you have all these clothes? I was like, just lose 20 pounds. What are you afraid of? Let's play it out. Best case, worst case. When you do that, you can basically take away the emotion from the decision and say, okay, worst case scenario, you're on your friend's couch, and you know what? You were poor before this and you were happy then too. So worst case scenario is you're in the same position you've been in before and it was fine. Best case scenario, you change your life forever. So does that feel like a bet you're willing to…
Empathy Over Ego: The Key to Effective Sales
Successful weight loss sales hinge on understanding and addressing the underlying fears and traumas of clients. When individuals seek help for weight loss, they come burdened with past failures and excuses that often lead to paralysis in decision-making. The most effective salespeople prioritize the well-being of the prospect over their own interests, recognizing that empathy fosters trust and connection. By leveraging their expertise and insight into the client's struggles, they guide prospects towards confronting their fears and taking actionable steps, thereby helping them break free from self-imposed limitations. Ultimately, the salesperson's desire to genuinely assist the client can transform the sales process into a meaningful journey towards overcoming significant life challenges.
Transcript:
Alex Hormozi
They came in because they're trying to lose weight. We sell weight loss, what's the problem? Like, we just have to figure it out. And usually it's just like, it's mounds of stuff you have to unpile of all these excuses of all the times that they've been unsuccessful in their lives. It's like, they came in because they want to solve the problem. And when they can confront it with the decision, they get freaked out again. Because they really have this past traumas of the things they've tried and then feeling like a failure. And then they associate that failure with you in the moment. You're like, hey, Susan, calm down.…
Master the Art of Sustained Sales Performance
Successful sales require deep engagement, adherence to concise scripts, and strategic use of analogies to help customers overcome obstacles. The essence of sales lies in facilitating the likelihood of a prospect's purchase, aiming for a flawless process where every variable is accounted for to achieve 100% conversion if possible. Good salespeople maximize opportunities and maintain high conversion rates, but true champions distinguish themselves by their ability to sustain performance over time. Many salespeople struggle with the inconsistency of motivation; maintaining a steady performance is crucial and signifies a skill development gap rather than a lack of aptitude for sales.
Transcript:
Alex Hormozi
And when they're on the call, they're completely present, they breathe the script, they know how to handle obstacles, they have analogies and stories and metaphors memorized so they Can help people overcome their issues. They stick to the script, they don't add to the script, they keep their word concision as tight as humanly possible so they can maximize the number of sales they have per day and maximize The conversion rate of those sales. Fundamentally, sales, by the way, I should have defined this earlier, is increasingly likely that the prospect buys. That's all it is. So everything that has to do with sales, like if you had the perfect sales process, it means you would account for every single variable that could ever…
Sustain Performance to Achieve Greatness
Champions distinguish themselves by their ability to sustain performance and consistency over time. While many may waver in enthusiasm or commitment, true professionals maintain a high level of motivation, even when facing tasks or responsibilities they may not enjoy. This consistency is crucial for personal and professional growth, particularly in sales. Additionally, there are different types of salespeople: 'dogs', who require constant attention and support; 'horses', who need external motivation to perform; and 'tigers', who are intrinsically driven and motivated by the thrill of the hunt. The most successful salespeople embody the tiger mindset, thriving on challenges and the excitement of achieving results.
Transcript:
Alex Hormozi
And I promise you, the difference between champions and everyone else is they can sustain performance. It's not like, oh, I don't know if sales is for me. I don't know if I'm growing enough in my world. Dude, here's the clear deficiencies. You can't stay consistent. There's some growth that you can tackle right now. Being consistent. Another kind of meta skill around this is enthusiasm. Like, they're enthusiastic one week, they're not enthusiastic the next week. Being able to sustain and maintain a high level of enthusiasm for the role and when you're on the call is a skill. Whistle while you work. You got to learn how to do it. You got to learn to like the stuff you don't love so you can do the…
Embrace Every Interaction as Practice
Sales success hinges on engaging deeply with every prospect, regardless of their circumstances. Like dogs need constant care and attention, effective sales require persistent effort and passion. The analogy of tigers illustrates that true salespeople thrive on the thrill of the hunt, showing that they can seize opportunities at any moment, even when unexpected. Viewing each interaction, especially with those perceived as less likely to purchase, as valuable practice enhances both skill and confidence. Treating every customer with respect ensures that their potential as clients is maximized, reinforcing the belief that every engagement contributes to overall mastery, just as varied weights create a balanced workout.
Transcript:
Alex Hormozi
He's like, dogs, you gotta feed them, and if you don't feed them, they starve to death. And you gotta give them all the attention, you gotta rub their bell every day, and the moment you stop, they die. Horses, they will gallop as long as you keep whipping them, but the moment you stop galloping, they just go down to a trot. He's like, but tigers, he said a tiger can eat a full meal, but then if a bunny walks across his line of vision will kill the bunny for sport He's like you want Tigers and I love that little Analogy because the best sales people that I've ever met my life. They love sales They love the thrill of the clothes of the hunt when I was selling weight loss I would sometimes have homeless…
Embrace Every Opportunity for Growth
Growth in sales stems from a willingness to tackle challenges, including handling less qualified leads, as they offer invaluable practice and skill development. The effort put into these leads becomes a competitive advantage, leading to improved performance. Taking every experience as a learning opportunity is crucial. Furthermore, tracking a diverse set of metrics allows for a comprehensive evaluation of sales skills beyond mere outcomes, enabling continuous improvement and mastery in the craft of sales.
Transcript:
Alex Hormozi
And so I had, I'll tell you Jacob's story, which is my young, you know, started with me at like 15 and now he's been with me however many years, seven. He started as a low man on the totem pole. And so when we would have lesser qualified leads, they handed all of them to Jacob. He's like, I'll be the garbage man. He's like, I'll take anybody's leads. He's like, I just want to get good. I just want to practice. And so he's trying to take as many reps as he possibly could. And guess what happened? He started more reps than everyone else did. And guess what happened after that? He got better than other people did because he took more reps. And he took every one of these as a fucking gift, which is what it is, is that someone's going to give you the time to learn the skill of sales. The business paid for that lead. Maybe it's less qualified. They paid for it just the same. And you have the benefit of learning. The…
Metrics Matter: Control the Variables to Enhance Sales
Understanding a range of key metrics is crucial for sales success. Focus on show rates, closing percentages, average calls to close, and cash collected to gain insights into performance. Increasing show rates by 20% can have a similar impact as increasing close rates by the same percentage. Top salespeople understand the importance of managing various factors in the sales funnel to enhance total sales. Distinguish between salespeople who are proactive and those who are passive in their approach—motivated individuals thrive on opportunities, whereas disengaged ones depend on external validation. To optimize team performance, prioritize assigning high-quality leads to top closers by analyzing data to identify leads with the highest likelihood of conversion.
Transcript:
Alex Hormozi
I want to know of show rate, what percentage are you offering? Of offer, how many of you're closing? What's your average call to close? Are you doing one call, two call, 1.2? Like what's your, what's your average number? What's your average number of cash collected? Like there's so many other metrics that you can track to know how well you're doing as a salesperson. And yes, for everybody, like shout this from the rooftops, if you can get their schedule rate up by 20%, it's just as good as getting their close rate up by 20%. And so there's so many other things in the funnel that the best salespeople know about closing, about how to increase…
Train Hard, Win Big
Attracting top sales talent hinges on showcasing the potential for significant earnings, creating an environment where individuals are motivated to enter with lower initial compensation in hopes of future gains. By training new salespeople on challenging leads, businesses minimize costs while enabling sales staff to hone their skills in tough scenarios. Successfully navigating difficult sales situations equips them to excel with qualified prospects, enhancing their confidence and performance when it matters most. This strategy leads to a win-win: salespeople grow through experience while businesses benefit from their development.
Transcript:
Alex Hormozi
And so if you know the best guy used to make $200,000 a year as the top closer, but now can make $800,000 a year, the amount of salespeople that you will attract your opportunity will 10x. Now, even though the entry level guys now make less than they did before, the opportunity, just like the lottery, the same reason people buy tickets, is they assume that they're going To get there. And so by having it this way, you have people come in willing to make less because they know that if they perform well, they'll go to the big leagues. Now, the other benefit of this is that you train your new guys on the worst leads. So you lose the least money as a business, but they also develop their skills, because they've got to learn how to big borrowed steel, and squeeze blood from the stones from the least Qualified…
Data Illuminates the Path to Improvement
Understanding the offer rate is crucial for assessing the quality of lead flow, as it highlights the percentage of qualified individuals receiving offers. Not everyone is qualified; thus, it's essential to filter out unfit candidates to maintain a high offer rate. A 100% show rate indicates maximum engagement, directly correlating to a perfect offer rate. The close rate, determined by tracking either the percentage of individuals who showed up or those who received an offer, should be monitored from both perspectives to detect potential manipulation by sales personnel seeking to inflate their numbers. Consistent data collection across the team reveals discrepancies in performance, allowing for identification of issues related to lead quality or sales effectiveness. Quality data is fundamental to diagnosing problems accurately and implementing effective solutions for improvement.
Transcript:
Alex Hormozi
The second one here is offer rate, which we forgot to put in the rates. Let me just put that in for you. There you go. Offer rate, which is the percentage of people that we actually make an offer to. You might be like, well, why would I not offer everybody? Well, not everyone's qualified. And so, for example, if I work with only gym owners and somebody comes on as like, oh, I'm a personal trainer, well, you shouldn't be here. We had all these other things that said, don't be here. But you still came. Why are you here? That means that…
Know Your Numbers to Improve Performance
Understanding key metrics in your business is vital for improvement. Achieving clarity on appointment offer rates and conversion percentages reveals opportunities for growth. For instance, an 83% offer rate led to a 27% closing percentage among those offered, underscoring the importance of tracking these figures. To enhance performance, establish a baseline of data to identify discrepancies and opportunities. In particular, focus on metrics like show rates, which should ideally be at least 70% in appointment-driven businesses. By analyzing communication patterns and their impact on show rates, businesses can significantly boost turnout and overall success.
Transcript:
Alex Hormozi
And then of the 49, we're able to offer 83% of them beforehand, so 80% of that is 40. 40 people now are getting offered out of our original 100 appointments. Of the people who get offered, 27% of them, which is 10 people roughly, are actually buying in that closing percentage. And then our cash collected from those 10 people is we're getting a little less than half of the cash that we closed down. Now I gave you 100 as a number, but the actual number of units sold for this business in the prior month was 56 units, all right? So this is current state. If you don't know these numbers in your business, you should so that you can improve them. Let's say I invest in your business today. The first thing we do is get the data so that we can see what baseline is,…
Optimize for Sales, Not Just Appointments
Focusing on optimizing for cost per sale rather than merely the lowest cost leads greatly influences where sales originate. A significant problem arose from canceling 75% of appointments with only a 49% show rate, indicating inefficiencies that equated to wasting resources. Additionally, multitasking between lead appointment setting and follow-up tasks disrupts workflow, as these require different mentalities and approaches. Key operational deficiencies included the failure to double dial, which is crucial for overcoming initial call screening, and an inadequately slow lead response time, with delays ranging from 30 minutes to several hours before contacting leads. Prioritizing speed and task specialization can enhance sales outcomes.
Transcript:
Alex Hormozi
And so when they zoomed in on how their media buyer was optimizing the traffic, they were optimizing against what a lot of people would initially think they should do, which is optimizing For the lowest cost leads and the lowest cost appointments. What we had to do was switch to optimize around cost per sale. If we can optimize around who we actually sell to, we'll shift where the sales come from. And just to give you how big of a problem this was, they had to cancel 75% of their appointments before the 49% show rate. The sales guys are spending most of their time just looking at their appointment, looking up the person canceling to get their 49% show rate. And that's about…
Aim for Deeper Discovery in Sales
In sales, achieving a higher close rate requires understanding the various contexts and variables involved, such as the nature of the sale, whether it's low ticket or an investment opportunity. A target close rate of 40% can be set against a current rate of 27%, indicating the potential for a 50% improvement. The critical issue is the lack of effective service level discovery in conversations. Instead of simply asking surface-level questions, sales representatives must delve into the client's intentions and motivations. This includes understanding the client's desired outcomes and the changes they hope to achieve, which provides essential insights and 'ammunition' for successfully closing the sale.
Transcript:
Alex Hormozi
I would normally give you a KPI, but it has so many different variables in terms of what percentage close rate is. Because if you're selling in person, for example, for a low ticket thing, you might be able to sell 80% plus of people walking the door. On the flip side, if you're selling an investment opportunity over the phone on, you know, a first or second contact, you might sell 5%. But for this particular type of sale that they had, which was a two call close, for like, I would say, a mid-priced consumer service, in my opinion, they should have been about 40%. So 40% is what I wanted them to be at. And then current was 27%. So this is where they were, this is where we wanted them to be. And again, for context here,…
Uncover Intentions to Navigate Sales Success
Understanding a person's underlying intentions is crucial in sales. Different motivations—such as replacing income, quitting a job, or seeking a side hustle—require tailored conversations to facilitate agreement. Engaging deeper, beyond surface-level inquiries, reveals the core reasons driving a prospect's interest. This approach not only clarifies their goals but also helps in identifying and addressing obstacles before discussing any numbers, ultimately smoothing the sales process. Failing to confront these initial obstacles can lead to misalignment and increased objections later in the conversation.
Transcript:
Alex Hormozi
Why does that matter to you? Right? And so these are all why and it's just to dig up their intentions. Because if you can understand why someone's there, it's much easier to get them to agree to getting them there. Right? But if you don't know that someone's trying to, let's say, replace their income versus quit their job versus just have side hustle money, those are very different intentions. If I want to talk to side hustle money, I'm probably not gonna be like, this is gonna take a ton of time. On the flip side, if someone's like, I hate my job, I just wanna do something that's not this, then I might talk about what the day-to looks like in this scenario and ask them if that sounds Better to them. So if you think about sales process, what they were doing is they were asking questions that were here,…
Qualify to Amplify: Sales Success Through Strategic Offer Management
Improving offer rates by focusing on qualified leads can significantly enhance sales performance. The sales team initially struggled by offering deals to unqualified individuals, primarily to secure commissions, which led to less effective closing rates. After targeting qualified prospects, the close rate improved by 50%, reaching 41%—exceeding benchmarks. Additionally, cash collections nearly doubled, jumping from 47% to 82%, signifying a stronger conviction among buyers about the solutions offered. The cumulative effect of these changes led to substantial cash flow improvements for the business, demonstrating that strategic alignment in sales can yield impressive financial results.
Transcript:
Alex Hormozi
The second change we have is our offer rate. And so here's what happened. Survey says 80%. We actually offer just about the same amount of people. Realistically, what they were doing is offering people who weren't qualified because the sales team wanted to eat. And I get that. Like there's a human component here. They were offering people who were not qualified the deal because they needed commissions, right? Which is what we were trying to fix with the target. Close rates. We went for 27% and 60 days later we were at 41%. So 1% above our benchmark. Alright, this is a 50% improvement in sales. So 40 and 50. Cuz I am. Next up we have percentage of cash collected. A really good metric for knowing how…
Mastery Through Duplication
Controlling tone and effectively scaling a sales team are crucial for achieving significant financial growth. Learning to sell is just the beginning; the ability to teach and duplicate selling skills in others amplifies potential earnings exponentially. This approach transcends various selling contexts, applicable to both B2C and B2B environments. A structured process exists, essential for closing sales successfully, regardless of the product's price point. The first step in this framework is to clarify the caller's purpose during sales calls, laying the groundwork for effective communication and successful sales outcomes.
Transcript:
Alex Hormozi
I don't. But I'm going to show you how you can beat seasoned prep, seasoned pros. All right. Which if I can find my presentation, there we go. By learning control your tone. And the last one is scaling. So for all you guys who are over $100,000 a month and need to scale a team, I'm going to show you how to duplicate the skill and other people. All right. Because it's one level of the skill is learning to sell. Another level of the skill is teaching to sell. And it's a more valuable skill. So if you can duplicate your skill in someone else, that is how you can make 10 times, 100 times more money because it's no longer, you're no longer constrained by your time. All right. So let's rock and roll. Close your framework. So after pouring over like hundreds of scripts, like I mean it hundreds of scripts. I…
Identify and Fill the Gaps for Success
Understanding that clients often lack essential components of a solution is crucial for facilitating their success. Offering a holistic approach addresses both physical and mental aspects; for instance, workouts alone are ineffective without proper nutrition and accountability. This underscores the importance of presenting solutions that incorporate multiple necessary elements, such as timely, qualified, and exclusive leads in sales. By recognizing these gaps and strategically guiding prospects to see how a comprehensive plan can address their issues, one can maintain an advantageous position in conversations, as clients are already acknowledging their challenges.
Transcript:
Alex Hormozi
Because if they had this missing piece or two of the equation, they were halfway there, they were three quarters of the way there, they were just missing this one piece, which we're going To provide for them. Right. And the nice thing is, is for most of you, hopefully, you're selling a holistic solution, right? So for example, I'm going to use a fitness example, because Mike's from from that background, too. If someone came in and said they tried workouts in the past, I'm going to be like, I'm not telling you that you don't need to work out. It's great. But you also need the nutrition and the accountability. You need nutrition to make sure they stop eating shit because if you just start working out and eating donuts, it's not going to work. Of…
Three Keys to Unwavering Sales Success
In sales pitches, relying on three core pillars can enhance effectiveness. For instance, when selling leads, prioritize attributes such as timeliness, qualification, and exclusivity. Understanding that a prospect reaches out because they are facing unresolved issues puts the salesperson in a favorable position, as prospects inherently lack one or more key solutions. To build rapport and understanding, utilizing anecdotal stories can effectively challenge the prospect's beliefs without resorting to technical jargon, which often creates resistance. Ultimately, prospects seek results, not the complexity of processes, highlighting the importance of focusing on their needs rather than the intricacies of the offerings.
Transcript:
Alex Hormozi
And at this point, this is my belief is that three things has been, you know, unequivocal in most pitches is that I think it's human brain is that you can't take more than three. But typically, it's like three pillars to the stool or three, you know, Finisher and Accountability. If I was selling leads, I'd want them to be, you know, timely, you know, qualified and, you know, exclusive, right? There'll be three elements to make with what makes a good lead, right? There's always three that you can usually find when you're selling a solution. And most times, not most times, every time, if you're on the phone, the prospect, you always have the upper hand because they have admitted at the beginning of this…
Stories Over Jargon: Relatability Wins
Utilizing relatable anecdotal stories effectively breaks down the beliefs of prospects without resorting to jargon or technical details. It’s crucial to focus on the results the prospect desires rather than the mechanics involved, as excessive detail can create a perception of work that deters interest. By drawing parallels to familiar experiences, such as childhood accountability, prospects can grasp the concept of transformation in a more personal manner. A concise pitch, ideally no longer than three minutes, allows for connection without overwhelming the audience, as the key factor in their buying decision is the feeling of being understood.
Transcript:
Alex Hormozi
And so in this instance, it has been my experience that we use stories, short anecdotal stories, to break the belief of the prospect around a topic. What's important here is that we don't get into jargon, right? Don't get into techno babble and talking about the program and the modules and the things they're going to do because all of that sounds like work. And that's not what they're there for. They're there for a result, right? And so instead, I would say something like with the fitness nutrition accountability, like I said earlier, so if I was trying to explain accountability, be like, Listen, you don't Have accountability. When you were a kid, you ever like have your parents tell you to brush your teeth? They were like, Yeah, like, you know, you're like, I don't…
Articulate Problems to Propel Solutions
Understanding and clearly articulating the client's true problem is critical in effective sales. If the client's issue is misidentified, the product, regardless of its quality, may feel irrelevant to them. Clarity in addressing the problem fosters confidence in the solution being offered. Moreover, leveraging prior agreements between the client and their associates can facilitate embracing the proposed remedy, as clients are often inclined to resolve issues they disapprove of. In situations of reluctance, framing the commitment to purchase in a way that prompts immediate action—like suggesting a down payment—can alleviate fears and decision-making paralysis. Lastly, acknowledging that customers may hesitate due to a fear of making mistakes can help address their concerns and guide them toward a decision.
Transcript:
Alex Hormozi
He might know the product perfectly, but he just said that the guy's problem was not the problem. And so then it doesn't matter what the product is because he doesn't feel like it's for him, even though it's totally for him, but you just misarticulated the problem. That's where the clarity has to happen. If you nail that, the rest of the pitch is easy. All right. And so the key here is relying on past agreements that have already been made. So this person with their partner, with their spouse, with their business, you know, whatever, has art, that person knows that there's a problem. And they also don't…
Decisions Over Doubts: Embrace the Challenge
Addressing objections in decision-making requires understanding the underlying fears that prevent action. When potential clients express hesitation, it's important to identify their main concerns—this fosters collaboration and eases the decision-making process. Emphasizing the compatibility of values and the ability to meet needs can motivate clients to move forward. The approach of 'asking for forgiveness rather than permission' highlights a proactive mindset, especially in sales situations. Additionally, offering flexible options like delayed payments can alleviate pressure, allowing clients to feel secure while making choices. Ultimately, empowering clients to confront their fears can lead to more decisive actions.
Transcript:
Alex Hormozi
And so why would they be in any way against remedying a problem that they already don't approve of? Right? And then finally, always tack on, sometimes it's better asked for forgiveness than permission, right? Ha, ha, ha. Depends on the ticket sale, right? But you can get those in, right? And then obviously last last case here is you just do a delayed close and say let's get your card down, we could put a down payment, we can pay the rest on Friday. And if between now and then, you know, your partner comes back and says, no, man, I want to be poor, I want to keep struggling. And like, I want to never make money and like continue to do this for the rest of our lives, then I'll absolutely tear…
Believe to Achieve
Demonstrating conviction in a product can dramatically enhance sales effectiveness. A salesperson's authentic belief in the value of what they are selling renders intricate sales tactics unnecessary. When convinced of the product's merits, a salesperson naturally conveys enthusiasm and sincerity, fostering trust with potential customers. This intrinsic motivation to help others leads to more meaningful interactions and significantly improves sales outcomes. The core of successful selling lies in the quality of the product and the salesperson's ethical commitment to genuinely assist the client, minimizing the need for aggressive sales techniques.
Transcript:
Alex Hormozi
Conviction made real. So let me tell you this story. So I was, I was brought in to do a day of consulting with his mortgage leads company to train their sales team. And the first half of the day, I reworked the whole script, I put the closure framework made it a question based sale. And then I came in and they were expecting me to like rain, you know, fire brimstone on these guys. And so I sat down, I was like, Who's the guy having the most trouble with this guy, john, so I was like, john, and they were selling leads. I was like, john, I'll go to the leads. He was like, well, you know, and I was like, we're good. Thanks. And I was like, let me show you how you would answer it if you actually believe that the leads were good. I was like, you'd say like, dude, these leads are fucking…
Success Rests on Belief and Effort
Never blame customers for their lack of success; instead, reflect on how to enhance their experience. Continuous self-evaluation and improvement are crucial for success. Individuals must put in the effort that matches the value of what they offer, fostering genuine conviction. Many salespeople experience burnout not from rejection, but from internal dissatisfaction stemming from insufficient effort. To thrive, one must cultivate deep belief in their product and be passionate advocates, akin to a devoted evangelist. Ultimately, success hinges on unwavering conviction in what one sells, leading to resilience against challenges.
Transcript:
Alex Hormozi
And never blame a customer for lack of success. So as much as there are people who have not been successful who've used gym launch, I still take the fact that they were not successful. I think what could I have done that would have made the next person like them successful and you plug the hole. Right. If you do that over and over and over and over again, you know, truly, at the end of the day, when you look at yourself in the mirror, when no one else is watching, whether or not you truly Put the effort for it that merits the price that you are charging, right? And only you can know that. And the thing is, is like, the reason salespeople get beat up is because they don't put the work in and then it grates on their soul. And then eventually they burn out, they burn out not because they can't…
Prepayment Saves and Ties Value to Outcomes
To enhance sales strategies, businesses should consider offering prepayment incentives, such as a discount for immediate payment, which can significantly increase customer buy-in. Furthermore, it's essential to identify the gap between what customers currently have and what they desire. By structuring service offers around clear goals and tying pricing to specific outcomes, businesses can alleviate customer risk and ensure satisfaction. For example, in a service-driven scenario like house painting, breaking down the process into defined steps, timelines, and guarantees can effectively communicate value and encourage purchase commitments.
Transcript:
Alex Hormozi
I can save you a little bit of money. You want to save a little money? They're like, yeah, I want to say a little money. Well, if you prepay, you can save 10% today. So I can save you 450 bucks. Do that. So most people do. Great. You want to use the card you have in file? So that's that's the process. Now, I took this process and applied it to a completely different service business that we own, that's a chain, that this is a little bit more medical. But the concept still applied, which is, and this is the key part, is you have to figure out for whatever it is that you sell, what the current is versus what the desired is. If I were a painter, and I was painting houses, sounds crazy, right? So, hey, so you currently have this thing, you want a completely painted house, and…
Empower Goals to Enhance Revenue
Transform sales from one-time transactions to recurring revenue by guiding customers to self-identify their goals. This approach shifts the focus from merely selling a service to demonstrating how the service meets customers' desired outcomes. Engaging customers with visual aids helps them articulate their aspirations, which not only personalizes the experience but also allows customers to set their own pricing based on the value they see in achieving their goals. This strategy significantly increases both the average revenue per customer and business growth, as evidenced by a jump from $200 to $800 in average revenue per customer over an 18-month period across multiple locations.
Transcript:
Alex Hormozi
And I said, great. So let me know when you do it across all the locations and let's keep buying and opening new ones. And so 18 months later, we have 32 locations and the recurring revenue in that time period has gone up. And the average revenue per customer went from $200 to $800 from this one process. And that was because before this, they were selling one-off transactions. They were saying, hey, we'll do this service for you. So think of it like Botox, or we're going to do filler, or we're going to do something this one time. And so rather than just say, sure, give us a call when you want it again, which is pretty much what the process was before this, I say, hey, you want to look a certain way. You're not here because you want filler.…
Know Your Starting Point, Define Your Destination
The effectiveness of a service experience hinges on the ability to not only gauge a customer's current state but also to involve them in setting their goals. Relying solely on a predefined scale may limit the customer’s perspective, leading to a disconnect between service delivery and customer aspirations. Additionally, in sales, particularly with upselling strategies, the price point of the additional offers is crucial; ideally, it should be significantly higher than the initial purchase to maximize revenue potential. Understanding customer value and aligning upsell offers accordingly can lead to better sales outcomes.
Transcript:
Alex Hormozi
And he was like, no. And I was like, fantastic. What else did they do? It was like, did they have you pick where you're at and what your goal is? He said, yeah, did have me pick where I was at, but not where I wanted to go. So they just had him pick, okay, how ugly are you? And he was like, okay. Now, again, not completely flawed. I want to be really clear here. Like, this is a look at 14 locations. They're not idiots. They had the pain. We agitated the pain. They said, listen, this is how ugly you are on this scale that we invented. And you're here. You're seven ugly. So we checked this. But he didn't get to say where he wanted to be. So then from there, he just went right into the service. And then when he came out, he just gave them the card to pay for the service, and that was…
- Evaluate a person's skill by examining the metrics they use.
- The quality and quantity of their metrics directly correlate with their proficiency.
Transcript:
Alex Hormozi
So one of the easiest ways that you can measure someone's proficiency in any skill, so this little pro tip, the quality and quantity of metrics that someone explains about how they do Their job is directly correlated with how good they are at the job. And so if someone's like,
- When hiring sales directors, look for even-keeled, humble, servant-oriented individuals.
- They should be enthusiastic about coaching and repeating instructions, acting like a source of positive vibes.
Transcript:
Alex Hormozi
Of the I would say demeanor. Now I've hired a lot of sales people and sales directors in my life and the personality of a sales leader is usually not the same as the personality of a sales killer. Now there are some superstars who can do both, but it's rarer. Oftentimes the demeanor of sales directors is a little bit more even-keeled, usually more humble, very servant-oriented. They have to be people people. They have to be the type of person who wants to pour into the team and loves watching someone improve their skill set and can repeat the same directions over and over and over again without Losing enthusiasm. That's who you want. You want somebody who's like an energizer bunny of positive vibes, because for the most part, sales director is just performance management. They manage the culture of
- Consider the required skills and their rarity when determining salesperson compensation.
- If the required skills are common, you can pay less; if the skills are rare or the expectations are high, you'll need to pay more.
Transcript:
Alex Hormozi
So I just think, how much would I need to pay to attract the level of salesperson I need? Our goal is to take it from 20% to around 10% or less, and rebuild the complaint. You can think about compensation in
Embrace the Busy to Build Lasting Success
To create lasting success, it's essential to develop skills during busy times, as future challenges will likely arise. Learning in optimal conditions may lead to failure when circumstances change. Instead of relying on perfect scenarios, individuals should approach their busy schedule as an opportunity to learn and adapt. Through storytelling and personal experience, one can effectively communicate this challenge to others, prompting them to recognize their own time management issues without feeling defensive. This method emphasizes the importance of peeling back layers in conversations to understand deeper motivations, leading to meaningful engagement and support when needed most.
Transcript:
Alex Hormozi
Do you want this to be something that lasts for the long term? It's a question. Really get it. Do you think that you're going to be busy again in the future? Well, yeah. So you want this to last in the the long run and you do think you're gonna be busy again in the future. Well then, don't you think it'd be best to start now when you are busy? Because if you learn how to do it when you're busy, you'll be able to do it forever. If you can only learn it during a perfect circumstance, then you're gonna fall off when it gets busy again. And isn't that the time you'd wanna have the most support? And so, when you knock that out, the goal is that the person says, well fuck, that's not a good reason. And you take one step towards the…
Peel Back to Find Time
Success is often not about adding more tasks but rather about removing ineffective activities that consume time. By understanding the underlying issues and approaching the conversation with empathy, one can recognize the layers of obstacles a prospect faces. It's crucial to guide them to uncover time-wasting habits through relatable storytelling, helping them realize that their perception of a lack of time is linked to overwhelming tasks that don't yield results. Ultimately, effective programs aim to streamline efforts, eliminating the majority of the tasks that lead to frustration and enabling individuals to focus on what truly drives success.
Transcript:
Alex Hormozi
And you take one step towards the truth. So when you're thinking about it, it's not like, oh, I've gotta overcome this one thing and then they'll buy. You gotta keep peeling. And if you have this framework, you understand the direction you're going in. And you can start listening for the, oh, they're talking about themselves now. I've gotten two layers deeper, right? So that's seasonal. Micro, you can't tell someone in a sale, hey, take out your phone, take out your hours by week, pull it up, oh look, 22 hours on social media this week. You've got time. So you say it differently. You say, you know what? I had the same issue and I used to complain all the time about like how I didn't have time to be successful and do things I needed to do and my wife got sick and tired of me saying…
Commitment Breeds Success
Success is rooted in recognizing and ceasing unproductive behaviors rather than merely focusing on actions. Financial beliefs often stem from false narratives, such as the need to be wealthy before investing. When encountering objections about price, it's essential to gauge personal value rather than simply discussing cost. If a prospect perceives the price as high, this suggests they are invested in their growth, which is crucial for commitment. True success comes from a willingness to take risks and fully engage in personal transformation, rather than waiting for external validation or saving strategies based on conditional wealth.
Transcript:
Alex Hormozi
But the reality is, it's not about what I am doing, it's about the stuff I gotta stop doing. And that's what I help you with, right? This isn't scripting, this is just understanding it, right? And then when then? It's a fallacy, it's a distortion, it's not real. And then just use two crazy examples like, once I have money then, or I'll save money when I'm rich. It's just like ridiculous. Okay, so what do we do? One reason down and we're getting closer to the core, right? Right, so who here is somebody who's like, I can't afford it, it's too expensive, or has heard this from a prospect? I was like, I better see everybody's hands. Especially if you're selling high ticket, which hopefully you get a gasp. So these are the four frameworks that I think through. There's a million like money closes.…
Invest in Knowledge to Save Time
Valuing the effort required to achieve results indicates a willingness to pursue success. Investing in programs is about weighing the cost of time versus money; you'll incur expenses either way. Opting for financial investment means accessing pre-learned lessons that can expedite your journey, allowing you to avoid the lengthy trial and error process. The key decision lies in choosing how to pay for knowledge—whether through immediate financial outlay or prolonged time investment. Ultimately, leveraging the experiences of others is a strategic way to accelerate personal growth and achieve goals more efficiently.
Transcript:
Alex Hormozi
So number one is the fact that it's a lot for you is good. It means you're actually gonna try. Number two is if it does what we say it's gonna do, the value's there. So that's not actually what you're opposed to, which then we can take the next step, all right? Number three is what's money good for anyways? This is actually one of my favorite lines of reasoning, for a variety of reasons, and I'll get to it. When you're looking at a prospect, or looking at, you're going to spend this money either way over the next 12 months. You're going to spend it. And in fact, not only are you going to spend it, you're going to buy the program. The question is whether you're going to pay for it in money or pay for it in time. And so you can learn every single lesson that's in this program, whether it's losing weight,…
Embrace Change to Transform Identity
Transitioning into adulthood or new stages of life involves adopting a new identity that is accompanied by fresh priorities. As one evolves, it’s crucial to reassess spending habits and focus on investments that align with the desired identity, such as education and personal development. Embracing this change requires a conscious decision to leave behind old behaviors that do not support growth. The successful embrace of a new identity draws a clear distinction between who one was and who one aims to become, embodying the values and actions of those who have achieved the desired success.
Transcript:
Alex Hormozi
This, like this, this. And they were like giggling, so excited, and they had like the girl with the smock came over, was like helping her out, helping them out. And she was like, okay, this is like eyeliner and this is lipstick and this is whatever blush I'm just like using words I've heard This is how you paint your face and the thing is the girls Were like so excited and then they were like right before they Left she was like girls. She's like you have to remember like now that you're getting older and you're becoming a woman and you start budging For this stuff. All right, so you're gonna start buying this every month. Alright, so like, remember, you gotta save some money for this, you can have it. And the girls were so excited that they were like, yes, like we're becoming women now, and these are the things that women do.…
Change Your Approach to Transform Outcomes
Investing excessively in material possessions, like expensive outfits or shoe collections, diverts resources from developing skills that could yield greater returns. True transformation requires altering habits and routines that currently define one’s outcomes. For instance, one's eating habits directly impact overall health and financial status. To achieve different results, embracing change in established practices is essential.
Transcript:
Alex Hormozi
Do you think another $1,000 outfit would make you look better? Or being rich as fuck? And I say that for those of you who are thinking about it on the money side, right? Like you waste money. Some of you guys have bigger shoe collections than like, it's like fitness people and shoes. It's like the way, like, and Lululemon and the, you know, spandex, it's like a hundreds pieces of spandex. Anyways, so it's like your whole wardrobe could be consolidated into a skill that could buy you as many wardrobes as you want if you chose to. Right? Okay. Rocket. I don't like this certain aspect. This is one of my favorite, easiest ones to hit, which is like, you gotta change the change. Right? What you have been doing has been getting what you've been getting. And you gotta change the change. Because like, I remember I would go through meal plans with people and they'd be like, well, can we change this? Because this is what I eat for breakfast. Can we make that the breakfast? And I'm like,…
Empower Yourself, Don't Seek Permission
Overcoming personal struggles necessitates recognizing the importance of self-approval over seeking external validation, particularly from a spouse. Acknowledging that partners would not genuinely support a struggle they themselves disapprove of is crucial. The focus should shift to the individual’s own aspirations, reminding oneself that it is their life and they should pursue support rather than permission. If one continues to seek approval from others, they risk stagnation and may ultimately place blame elsewhere for their lack of progress.
Transcript:
Alex Hormozi
And then they will tell you, and then you just overcome the thing, which has nothing to do with the spouse. Because spouse isn't there, right? Very easy side step, does that make sense? This works really well. It's like why wouldn't they? It's like well, because they don't want me to fail. Ooh, they don't want you to fail. Let's talk about you. And so this is the process that I walk through. Do they approve of your current struggle? They happy that you're struggling? No, okay. Then why would they not approve of something that's gonna fix something they already don't approve of? Right? They're not happy with how you're currently doing. Why would they be against something that's already making them unhappy? Right? Right. Well let me ask you this, and then pause. Well if the rules were reversed, and your husband needed this to make what he wants, his dreams happen, or your…
Indecision is a Decision
Making informed choices requires experiencing a product or service first-hand, and offering guarantees facilitates this process by minimizing pressure. Clients should be encouraged to try without commit, allowing them to form genuine judgments. The concept of decision-making extends beyond mere choice; it involves understanding that every choice, including indecision, results in consequences that shape one's future. Choosing not to decide can mean sacrificing dreams or maintaining the status quo, thus highlighting the importance of proactive decision-making.
Transcript:
Alex Hormozi
How can you make an informed decision if you haven't even tried it? Huh? So this is when you have some element of trial in the program or some sort of guarantee, which is why I'm a big fan of guarantees. It's like well, you can't make the decision to buy that's informed until you're on the inside. So I'm not even asking to make a decision right now. I'm just actually making an informed decision, which you can only do on the inside. And if after 30 days I'm not what I said, this product doesn't do what I told you, I didn't fulfill my promise, and you don't think it's gonna work for you, you let me know I'll give you the Money back. Low pressure. You get someone to decide by not deciding. Even easier. Does that make sense? Think that'll help you close? Yeah. All right. And then this one is, it depends on who you're selling to, but sometimes if you have a logical person,…
Prioritize Customer Convenience to Boost Revenue
Businesses that accommodate customer needs effectively can capture more revenue opportunities, while those that refuse prompt service risk losing customers and money. Maximizing available appointment slots increases potential sales; rescheduling bookings to earlier times enhances show-up rates and sales velocity. This approach underscores the importance of customer-centric strategies in optimizing business performance.
Transcript:
Alex Hormozi
And let me give you a tactical example of this. When Layla and I were traveling the other day, we went to a different city and she wanted to get her nails done or something. And so she just pulled up Yelp and looked at the one that had the top reviews, called them up and said, oh, I'm sorry, we don't do same day appointments. And they're like, we can book you in for two days from now. And she was like, yep, don't care. Called the next one. Same thing. Called the third one. And then they were like, yeah, we can take you right now. And boom, she went in. And the thing is, is that both of those other business owners, the first two business owners that said, no, lost money. And the next time she comes to that place, she'll probably go back to the one that she went to as long as they did a good job. And so trying to be egotistical about it rather than accommodate customers, it's like, well, we're so great, you just lose money. Now, if we maximize the total number of time that's available…
Maximize Sales with Efficient Time Management
Successful salespeople optimize their schedules by rescheduling unresponsive prospects and filling time slots with active leads. By respecting the time of potential clients, they are able to increase the number of calls each day. A proven tactic involves contacting new appointments immediately to assess their qualification. If the lead is ready to engage, they can proceed directly to closing the sale. If not, the salesperson uses the opportunity to fill an upcoming time slot, ensuring efficient use of their time and maintaining a continuous flow of sales opportunities. This approach significantly boosts overall sales performance.
Transcript:
Alex Hormozi
Now a core layer to that is if you look at your calendar and you've reached out to a prospect and that person has not responded back and now it's the same day and they're coming up in a few Hours. Well what do you do? Well the best sales people pull that time slot and say hey sorry I didn't see that you confirmed. Why don't we do the same thing for tomorrow? You can push it out one and then try and fill that time slot with somebody who is responsive, even if they're later in the week. And that increases your total number of calls per day. And so, fundamentally, the perfect day for a salesperson is that they have call back to back to back to back to back with the best possible leads that are the hottest that day. I learned that little tactic about pooling up because we had one…
Referral Insight: Multiply Your Leads
To significantly enhance sales performance, implement a simple strategy of asking clients for referrals at the end of calls. By inquiring who else could benefit from your product or service, sales representatives can tap into a network of potential clients, thereby multiplying leads. This method has been shown to yield higher closing rates on referrals, often around 80% to 90%. In one notable instance, a new sales team member boosted their sales by 50% over their peers by adopting this approach, illustrating that a strategic shift in engagement can lead to exceptional results.
Transcript:
Alex Hormozi
So in the spirit of BAMFAM, Book a Meeting from a Meeting, if we consider this to be a meeting, if you would like us to help you more with your sales process, acquisition.com just started A workshop division where my sales director, my team will talk to you specifically about your sales, your process, your scripting, so we can implement some of the things that we know Working our portfolio into your business ASAP. We do other stuff at the workshop, but we also talk about sales. If that's at all interesting, you can book your next meeting by code acquisition.com, clicking the scale button and following the steps, and if you're qualified, my guys will reach Out. When I had a team at a different portfolio we had one guy who was outperforming everyone else by a huge margin. This one wasn't as big as the pull-up thing. That was massive. This…
Maximize Opportunity Through Preparation and Personalization
Advertising costs are on the rise, but businesses focused on effective outreach will thrive. Salespeople should maximize their available time and strategically pull appointments to enhance their call effectiveness. Engaging in personalized follow-ups, such as sending voice memos or videos, and asking preference questions can greatly increase attendance to calls. Small gestures, like offering gift cards or asking for color preferences, prompt more clients to engage. Ultimately, diligent preparation—like doing five minutes of research before a call—can significantly elevate a salesperson's perceived expertise and effectiveness in closing deals.
Transcript:
Alex Hormozi
And this is the type of stuff that's advertising becomes more expensive, because it always will become more expensive, that the businesses that do this, the salesmen that do this, Will be the ones that win in the future. So now we have a salesman who has the maximum number of hours, the maximum number of days, they're pulling up appointments so that their time on call, closing with the best people is maximized. They're following up before, they're following up after, they're doing personalized reach outs and saying like, hey, voice memo, hey, video, hey, I've got this thing for you that I've got set up for the call. What size shirt do you want? I've set aside a thing here, it was one of the things we did at the gym. Hey, what color shirt do you want?…
Preparation Is Key to Effective Outreach
Successful outreach hinges on thorough preparation, which involves gathering relevant data to understand the client’s needs and challenges before the interaction. By presenting personalized solutions, such as optimizing gym layouts to increase usability, you demonstrate knowledge and value right from the start. This proactive approach saves time and establishes credibility, particularly for newcomers in competitive fields. Effective sales strategies rely on detailed note-taking and adapting to insights gained from both public information and initial conversations, thus ensuring the salesperson is well-equipped to address specific client situations.
Transcript:
Alex Hormozi
And so when I would do my reach out, I would have all this data that I put as almost like a little profile together about them. And so when I hopped on the phone they were like, whoa, like you know a lot about my gym. And I was like, well, yeah. And I saw that because I look at the images me like so I saw your square footage layout. I think if you move this here, this might actually be able to allow you to double the amount of usable square footage that you have for the sessions. And that would help me sell more people into your gym. So I don't know if you're open to something like that. But now I'm coming in with like, I see the problem. I also have the solution because I thought about it before we got on the phone. Because I don't want to waste your time trying…
Notes Transform Sellers into Consultants
Effective salespeople excel in taking notes, which aids them in personalizing their approach during subsequent calls. They utilize gathered information to demonstrate genuine understanding of the client's context, alleviating the need for customers to repeat their stories. By doing this, they establish trust and show that their recommendations are tailored to the client's specific situation, transitioning from a mere sales role to a consultative position. Additionally, exceptional salespeople prioritize listening over talking, debunking the myth that successful sales require constant chatter. Instead, they focus on understanding client needs, contrasting with less effective sales approaches that value talk over substance.
Transcript:
Alex Hormozi
The best salespeople take notes. This is one of those things that is just like prep, but it preps you for the next call. And so you do your public preparation with what you can find and observe. You do your second call preparation with what you find out on the phone. And I'm telling you, if you hop on the phone and say, oh yeah, so you've got your daughter, Sarah and, and they're at Colorado and they're finishing up, and you've got X, Y, and Z happening In the business. Is that correct? Okay, cool. Just making sure to just read over some of the past notes before I got on the call. They're like, oh wow, I don't have to resave my whole life story again. This guy, now when this guy makes…
Listen Deeply to Respond Effectively
Effective communication hinges on listening more than speaking. By responding to questions with further questions, one can gather context that helps tailor responses to align with what the other person wants. Highlighting the positive aspects of past experiences ensures that the response resonates with the listener. Memorizing the key points enables a natural flow of conversation, akin to breathing, allowing for genuine engagement rather than mechanical responses. Being fully present and focused on the prospect, rather than preoccupied with one's own responses, facilitates deeper connection and understanding.
Transcript:
Alex Hormozi
So, they listen more than they talk, they are like smoke. You only answer questions with questions unless you already know that the statement that you're gonna say is in alignment with what you know the person wants. And so, if they're like, tell me why you're different, then I'd be like, well, what have you done in the past? Because then it'll give me more context, so I can help explain it. Now they're gonna say all these things, I'd be like, well, what did you like about that? What did you not like about that? And so when I get to the point where I actually have to say what are things about, I'm gonna highlight all the things they liked about the other stuff, and I'm gonna not highlight the things They didn't like about the other stuff. And all of a sudden they'd be like, this is perfect. I'd be like,…
Humor Eases Tension and Achieves Results
Using humor and a lighthearted tone can effectively communicate expectations and achieve desired outcomes in potentially tense situations. By approaching difficult conversations with a playful attitude, individuals can diffuse tension and maintain a positive interaction. This technique allows for honest communication without provoking defensiveness, encouraging openness and collaboration in problem-solving.
Transcript:
Alex Hormozi
And so I learned how the gym business worked. But anyways, I saw him have this rich white lady, doesn't put her weights back, right? And he was still training at the time. Like he was training sessions a little bit. And so he was like, girl, he's like, I know you ain't about to leave my gym without putting your weights back. And he's a Persian dude, right? But he would get into this kind of like ghetto, like whatever you want to call it, way of talking. And she'd be like, fine, I'll go put him back. And I thought about that. And I was like, man, if I just been like, hey, Susan, can you put your weights back? Oh, like, she's like, I pay for personal training, you can put my weights back. Like that could get really bad really fast. But when you say it like that, all of a sudden it's like, I'm communicating the same thing, and I get the desired result, and they think it's fun and lighthearted. And so in the same sense, when you're in the close, I use a ton of humor and that tonality to diffuse hard…
Persistence in Sales: Care Leads to Close
Successful sales require relentless persistence and a focus on helping the prospect. Effective salespeople embrace an unwavering commitment to understanding and resolving the prospect's concerns. This approach often involves repeated inquiries and a willingness to work through potential objections that stem from the prospect's past failures and traumas. The best closers prioritize the prospect's needs and emotions over their own desires, fostering a genuine connection that ultimately leads to successful sales outcomes. Those who show they truly care about helping the prospect are more likely to achieve success in closing deals.
Transcript:
Alex Hormozi
And you can do this literally unlimited times as long as you resolve the concern and then you ask again. I mean, Layla will tell you that like if it was either a Sunday sale because I usually had way less calls on Sundays or it was the last appointment of the day for me, she just knew that I would Always close that sale because I would just have unlimited time because I was like, I will just keep going. And so I will ask again and again and again. And I had a partner back in the day, I don't know if I like the visual, but he's like, he's like, you're like a pit bull on someone's ankle. He's like, you just will not fucking let them leave. And I was like, it's because I think that they need it. They came in because they're trying to lose weight. We sell weight loss, what's the problem?…
Balance Cash Flow with Sales Metrics
Understanding the interplay between cash collected upfront, close rates, and units sold is essential for business success. A high cash collected percentage paired with a low close rate suggests a focused approach to sales, indicating that the business is securing significant upfront cash rather than just closing deals. Conversely, a high close rate coupled with a low cash collected percentage reveals a potential issue—sales may be generated without securing sufficient upfront funds. The overall goal is to maximize both metrics to improve cash flow and drive unit sales. Tracking show rates, appointment outcomes, and closing percentages provides insights into performance, enabling adjustments to strategies for better financial health and operational efficiency.
Transcript:
Alex Hormozi
So the fourth set here is percentage of cash collected upfront. Meaning if we're selling a thousand dollar widgets and the average cash we collect today is $500 because people do payment plans, then we would know our cash collected percentage would Be 50%. If I have a low close rate, but high cash collected percentage, that would tell me a different story than a really high close rate and really low cash collected percentage. I'd be like, oh, so they're just getting anyone to say yes, and taking $10 down if they can, versus somebody saying we have a hard line. And so it's really trying to find the magic between these two and saying, how can I get as many…
Mastering Tone and Emphasis in Sales Communication
Effective sales communication hinges on the nuances of tone and emphasis, which can alter the perception of a message dramatically. An improperly trained salesperson may follow a script but fail to convey the intended message, leading to misunderstandings with prospects. The way a sentence is delivered—through voice modulation and emphasis on certain words—can change its implied meaning. For example, different emphases in the phrase 'I didn't say he hit his wife' can suggest various interpretations about the topic being discussed. In a sales context, these details are crucial for successfully closing deals. Additionally, organizational structure can impact sales performance; having a CEO act as the sales manager due to past success as a closer may not translate into effective management, highlighting the importance of aligning roles with skills.
Transcript:
Alex Hormozi
An improperly trained salesperson might be like, well, what are the main concerns you have? And all of a sudden that sounds like a very different thing. So they're saying the script, but they're not, but the prospect isn't hearing the same message. And these are little details that actually can make a huge difference in ultimately how you close. There's a lot of things in tone, but I'll just say one is how you raise or lower your voice. And the second is where you choose to emphasize. If I say, I didn't say he hit his wife. If I say like that, I have…
Understand the Prospect, Not Just the Product
Effective sales hinge on a deep understanding of the prospect rather than solely the product being sold. Founders, often tasked with promoting their offerings, tend to grasp customer needs better due to their early involvement in sales. However, many companies overemphasize product knowledge while neglecting to educate their sales teams about prospects' intentions and backgrounds. This imbalance can lead to high turnover rates in sales teams. A successful sales approach ultimately requires the ability to connect meaningfully with potential buyers, engaging with them on a personal level to tailor the sales pitch effectively, instead of relying solely on product features.
Transcript:
Alex Hormozi
And oftentimes those are two very different skills. And we could see this because the churn on their sales team was through the roof. Just to be clear, like they were a group of young founders. It's not uncommon. It's actually probably very common because usually when you start a business, learning how to promote and sell the product is usually the job of the founders. Like how do I get people to want to buy the thing? And so they end up getting the most reps early on and also understanding the prospect better than just about anyone. And so one of the big things, you guys are in a little mini sales lesson today, is that companies will over educate on the product and under educate on the prospect. The person that you should be educating…
Persist with Purpose: The Art of Looping in Sales
Looping in sales is a crucial technique that involves addressing objections and re-asking for the sale, emphasizing that the success rate is directly proportional to the frequency of requests. Salespeople often hesitate to re-ask after a ‘no,’ but effective looping requires resolving concerns by asking targeted questions to uncover specifics. For example, if a customer feels overwhelmed by complexity, understanding the exact issue allows the salesperson to propose a solution, enhancing confidence and readiness to proceed. Consistently asking for commitment after addressing concerns fosters a conversational rhythm that can lead to successful sales outcomes. It's essential to keep the dialogue open, returning to inquiries about the decision-making process to maintain engagement and confidence, thereby maximizing the chances of closing the sale.
Transcript:
Alex Hormozi
And looping is just a sales terminology for basically when you encounter an objection, handling the objection, and then asking again. Handle the objection, ask again. Right? Because a lot of sales people are afraid to ask if someone says no, and they don't want to ask again. Right? And I can tell you this is that the number of sales you make is direct proportional how many times you ask. There's ways to do it wrong, and there's ways to do it right. The idea is that you should be able to resolve the concern. Right? So if someone says, I need to think about it,…
Mastery Over Tone Triumphs Experience
In high-ticket sales, the ability to control one's tone is crucial and can allow less experienced salespeople to outperform seasoned professionals. Focusing on just three key elements on sales calls is essential, particularly for newcomers to the field. It's emphasized that hiring seasoned closers is not the best strategy; instead, teaching the skill of sales and duplicating that ability in others is highlighted as a superior approach. This duplicative skill not only enhances team performance but also allows for exponential earning potential, as it removes the constraint of individual time on sales outcomes.
Transcript:
Alex Hormozi
All right, and I'm going to walk through the questions that we ask, and specifically what only three things that you can say on a sales call, period. It's the number one mistake that all the sales guys that even my guys make, and I have to remind them up. All right, the second thing is the conviction framework. So anyone who believes can outperform a season sales rep by simply wanting to control their tone. All right, so some of you guys right now, can I get a hand? I'm going to unshare my screen real quick. Can I get hands on the screen of who here is newer to this? Newer to high ticket sales. Okay, great. Perfect. Then this is for you. I'm going to show you how you can beat the best sales reps. All right. And this is how I never ever hire seasoned closers just FYI. No, no, it's not like we're going to…
Embrace Discomfort for Growth
Encouraging individuals to take action involves addressing their motivations and the discomfort they may face, such as the fear of failure or rejection. It is crucial to clarify their presence and intentions; understanding the underlying reasons for seeking change helps identify their goals. Individuals must acknowledge their problems before solutions can be pursued, similar to a necessary admission of a condition before treatment. Additionally, reviewing past attempts and struggles through a 'pain cycle' can provide valuable insights and ammunition for future discussions, reinforcing that challenges are not solely their fault. This process fosters ownership of their journey and cultivates a pathway toward meaningful change.
Transcript:
Alex Hormozi
Why should they not just watch Netflix? Why should they, why should they take action? Why should they have the discomfort of getting, you know, smacked on the phone by a stranger? Right? Why should they, why should they feel the sting of failure? We have to sell them consistently to help them overcome their pains. Right? And so I'll show you some of these more closely. So clarifying why they're there, right? It's like, what made you come in today? What made you reach out? What's your goal right now? Why is that important to you? Right. Okay. Helping me understand what what are we doing here, right? This is one where someone in the beginning, like, you have to hit this because if someone says like,…
Embrace Joy to Overcome Resistance
To shift beliefs and foster positive behavior change, utilize questions, restatements, and relatable anecdotes. Engage individuals by prompting them to reflect on their desires and motivations, such as their favorite TV shows, to illustrate how anticipation can naturally drive action. By helping them look forward to healthy eating, you eliminate the need for external motivation. Focusing on enjoyment instead of complicated strategies like calorie counting or diet regimens makes the journey to wellness more appealing and less daunting.
Transcript:
Alex Hormozi
Questions, restatements, and anecdotal stories, which is the story that I just referenced. The three stories that you will use to break a belief. That's it. So this, that's how you solve them the vacations, you have these little sound bites, right? I'll give you another example. So if I was doing, I was doing food, right? I'm like, listen, three parts of the program finished your sustainability. So nutrition wise, you've got to eat stuff that's going to make you lose weight. Can we agree on that? Yes. Okay, cool. But the problem is, you don't want to do that, right? That's why we're here, right? Right, okay. So let me ask you a question. Do you feel like, what's your favorite TV show? They're gonna be like, whatever, Game of Thrones. You're like, okay, Game of Thrones. Do you feel like you need to get motivated to watch Game of Thrones? You're like, man, I was trying to watch it…
Navigate with Service Levels
Selling involves focusing on the destination while offering varied service levels to reach that goal. Whether customers choose to swim, take a boat, fly commercially, or charter a private jet to Maui, the key lies in addressing their different preferences for service quality. To effectively overcome sales obstacles, memorizing relatable stories and common objections is crucial. Understanding these dynamics empowers salespeople to engage customers in ways that resonate and dissolve concerns, ensuring a smoother sale process.
Transcript:
Alex Hormozi
And in our world, it's your modules, your real plan, your macros, your workouts, your support team, your URLs, your domains, your funnels, your targeting, your ads, and the other shit That doesn't matter. Right? But instead, what they want is you sell Maui, final destination. And you always sell the same thing because the difference is only the level of service that how they want to get there. Right? If you have multiple levels of service. So do they want to swim to Maui to where they're trying to go? There's sharks and you can drown or get robbed, right? Like this chick. Crazy. Do they want to take a boat to Maui? It'll take a little longer, but there's no shark attacks, but there's still no Wi-Fi and you're kind of, you know, in the sun. Do you want to take a normal flight to Maui? Get there a little faster. Still smells bad, has security, bad food, but you're going to get there. Or do you want to…
Master the Art of Selling Through Understanding
Sales success hinges on memorizing key stories related to the product and anticipating obstacles customers may face. Understanding the customer's pain points is critical; without clarifying their needs, it's premature to ask for a sale. Prioritize knowledge of milestones required to advance the conversation, and avoid jumping straight to the solution before fully grasping the client's motivations and goals. Embracing the discomfort of uncertainty in early discussions allows for a more tailored and effective sales approach.
Transcript:
Alex Hormozi
Do you want to take a normal flight to Maui? Get there a little faster. Still smells bad, has security, bad food, but you're going to get there. Or do you want to take a private jet to Maui? Direct, non-stop, champagne on the plane, suitcases packed when you arrive. Right? And so that's the selling piece. E is explaining away their concerns. And so these are the questions that sound like, so there's, I'm sure Mike has already taught you a lot of the obstacle overcome concepts, right. So fundamentally, there's three big ones, price, and rather than teach you the drilling of the obstacles, I told you there's two things you need to memorize. One of them are the stories, the second are the obstacle overcomes, because those are the things that you're in the red zone. That's not where you start thinking about what you're going to say. So the two things that you need to memorize as a a…
Treat Customers Right Within 48 Hours
Customer retention and satisfaction hinge on how clients are treated in the critical first 48 hours post-purchase. Personalized communication, such as customized welcome videos and handwritten cards, enhances customer trust and reaffirm their decision to engage with the company. This period is crucial for establishing a long-term relationship, and failing to acknowledge and engage customers can lead to early disillusionment. Additionally, mastery of tone in communication is pivotal for sales success, as script adjustments can yield varying results among sales reps. Effective tonality can elevate performance, making it essential for sales professionals to develop this skill to achieve optimal outcomes.
Transcript:
Alex Hormozi
Just taking your money and you're getting nothing, right? Again, well, let me tell you how that's not going to happen, right? You can bring their concerns. All right. And then finally, they say yes. And you're like, awesome. And this is where if you're selling for someone else, get them to send a personalized video like, Hey, Johnny, saw you just signed up with us today. Super pumped to have you. You're going to be meeting with Heather tomorrow. She's gonna get you kicked off. You should in the mail get a special gift. So keep a lookout for that. And then, you know, send a handwritten card. If someone just bought a really expensive thing, people are making their decision about whether they believe in you as a…
Sell with Conviction and Ethics
The success of sales hinges on the strength and credibility of the product being sold. A salesperson must have unwavering belief in their product to effectively close deals, as ethical selling demands alignment between what is promoted and the genuine value delivered. Positive testimonials serve as a powerful tool; reading them aloud daily can reinforce this belief and empower a sales team. If a business lacks strong testimonials, it is advisable to seek opportunities elsewhere, as effective closing is predicated on the existence of a quality product that can truly benefit customers.
Transcript:
Alex Hormozi
So that's why the most important part of the sale is the product because unless you're a malicious person Like most people here it was ever here have some level of ethics on some level Like no near just wants to like take someone's last dollar right So then the only way to sell hard because if you're gonna close you gotta sell hard The only way to sell hard is to believe Through and through balsa bones when you look at yourself in the mirror at night This is what I talked about Mike said at the very beginning, like what happens when people start hating On you? The only way that I'm able to stay where we're at in the gym industry, Mike knows the amount of hate that I get, right? The only way we've been able to do that is that I read the testimonials, the thousand of them that I have, of gyms who have gone to six figures, of the hundred…
Conviction Conquers All
To achieve success, one must cultivate strong conviction in their beliefs, especially regarding their product or service. This conviction enables individuals to persevere through skepticism and opposition, similar to the unwavering faith of a devoted believer. The strongest salespeople are those who genuinely believe in what they sell, as this belief outweighs any scripted techniques. Success hinges on the depth of one’s belief, and the measure of this belief can be gauged by the willingness to invest significant resources in the product or even endorse it to loved ones. Ultimately, leading with conviction in one's product establishes a clear advantage in any competitive scenario.
Transcript:
Alex Hormozi
Right. And so you have to put the work in to have the conviction, because that's what's going to get you through it. If you've ever met someone who's a born again Christian, all right, they are convicted. They do not care how many people tell them to shove it because they are trying to save people's souls. It's real. Like if you let that hit you, it's real. You know what I mean? And if you can be a disciple of whatever the product that you have an evangelist in the truest terms, then all the scripting stuff, it won't matter. Why are some of the best salespeople, clients who had success? Because they believe in it. That's it. And the most convicted person will always win the fight. They'll always lead the dance because they have conviction in their…
Value is in the Presentation, Not the Product
Implementing an effective sales process can significantly boost customer lifetime value (LTV) without altering the product or service offered. By changing the presentation and approach to sales, businesses can experience substantial financial growth. The concept of the diagnostic sales process exemplifies the importance of how value is communicated in scaling and growing a company. Companies often guard their unique methods, yet sharing knowledge can lead to greater returns. Understanding the spectrum of sales processes, from transactional to enterprise, can aid in effectively positioning sales strategies for different market segments.
Transcript:
Alex Hormozi
And as soon as we implemented that sales process, we forexed LTV progression, meaning how much people paid us. It went from 200 to 800. So really big jump. And the crazy thing about this is that we didn't change what we delivered. We only changed how we presented it. And so this is the key of how we create value, how we scale companies, how we grow companies. And many companies keep these things as secrets, as their special sauce. And I just fundamentally believe that the more we put out, the more we get back. And so that's why I operate this way. All right. So I will hold nothing back. And this is something that I call the diagnostic sales process. Now, to be very clear, the diagnostic sales process is one of two different sales or maybe three different sales processes,…
Transform Sales through Diagnostics
Enhancing sales effectiveness hinges on a shift from traditional sales methods to a diagnostic approach. By utilizing a pre-sale questionnaire to understand customer motivations, businesses can better tailor their offerings to meet client needs. This method not only increases engagement but also fosters a deeper connection with potential customers, ultimately leading to improved recurring revenue. Adapting successful strategies from one industry to another can yield significant benefits, demonstrating the importance of versatility in business practices.
Transcript:
Alex Hormozi
All right, so I'm going to give you two examples, and I'll explain this one in a second, this chart that I have here, which, if you could take your recurring revenue from that to that, just By changing how you sell, if you want to do that, hang tight, we're gonna break that out of the process. So if I had, because I did this in the gym world too, which is part of why our gyms make more money. So a traditional sale looks something like this. Someone comes in, so this is traditional, and you say, we have a membership that's, you know, whatever, $99 per month, all right? That's your membership. And you say, our membership has this, this, this, and this, and you want that, right? Because it's going to help you accomplish all your dreams. Okay. Sometimes you get people, sometimes you don't. What I do, we do something called a diagnostic. And so the first thing is that…
Mastery through Repetition and Smart Pricing
Effective training in sales involves repetition until team members can perform tasks instinctively. This ensures mastery and competence. Additionally, transitioning to a recurring revenue model can significantly enhance customer retention and lifetime value. An example illustrates this, where a member program's pricing strategy shifted from a month-to-month rate to a high upfront cost with financing options. This adjustment increased customer engagement from three months to eight months, boosting average revenue substantially.
Transcript:
Alex Hormozi
Now, training sales, not into this video, but you want to basically repeat the process over and over and over again. Until they're of it. Until they say like, yes mom would you like to have, do you have your credit, you want to use the credit card on file. Like until they're saying it, like they can they can breathe it, they can think, they can say without thinking about it, that's when you've maybe just started to have a team that's well Trained. Now that we finished these seven pieces of the diagnostic, I want to add one more bonus because you're like, wait a second, so where's the where's revenue? Great observation, Andrew. Okay, so number eight is transition to recurring, right? I remember this, I'll give you two separate stories that'll drive this home. So a friend of mine has a recurring membership that he sells. And he sells it at, I think he was selling at 300 bucks a…
Transform Payment Plans into Recurring Success
Introducing a continuity program can significantly reduce customer churn by transforming traditional payment plans into a recurring revenue model. The key is to maintain a consistent payment structure while adjusting how the payment is presented to customers, thus enhancing their commitment. Offering incentives for prepaid options, such as discounts, can encourage upfront payments and facilitate cash flow. Furthermore, providing flexible payment alternatives, like half up front with subsequent payments, caters to various customer financial situations. Implementing these strategies ensures a more stable revenue stream and reduces the risk of customer attrition.
Transcript:
Alex Hormozi
So we're talking about $900 to three times $300 to eight times $300 to $2400. That kind of change in a business, life changing in terms of how much money you can make. The second one was I had a different friend who had a continuity program. He was an agency. And what he did was he realized he had churn in his business. And so he said, you know, people are way less likely to churn out of a payment plan, same as the other one, than they are out of a monthly recurring revenue stream. And so what you call it to the customer can affect the likelihood that they pay. But as far as the business is concerned, you just want payments that are regular. And all you do to take a program and take it from a payment plan to recurring in terms of how it actually…
Present Prices to Maximize Perception
Present prices at the highest rate to enhance perceived value. Start with the full price, including payment plans, and show applicable discounts as deductions to create an attractive pricing structure. This strategy contrasts with the common practice of downplaying the full price, which can detract from the perceived value and lead to less favorable financial outcomes for the seller. By highlighting savings from discounts after presenting the top-line price, sellers can reinforce value and foster a more favorable negotiation environment.
Transcript:
Alex Hormozi
And here's the key part, is that when we present the price, you present it at the highest rate. So you present it at the payment plan. Let me walk you through this because I think it's important. Well, I'm going to put it here and set off the flip screens. All right, so you have your full boat, I'll say full interest price. So for us in our example is 4,500 bucks. All right, 45 weeks times 99 roughly. All right, so this is our full boat price. We have our prepayment discount in full, which is minus 20%. All right, for us it's going to be minus what is that 900 900 from there so that's 5600 sorry other way 3600. 3600. If they do half down. You say, I'll let you save 450 bucks, so 10%. So 4050. All right, so this is 10%, minus 10%, that's minus 20%. Now, the reason this is so important is think about the alternative. Think about, and this is what most people do, so listen to me,…
- A sales manager's job is to train their team on how to speak and manage the team's culture.
- If a team member's report building is weak, practice it repeatedly during one-on-ones.
Transcript:
Alex Hormozi
You role play. Like, you role play till you're sick in the face. You have to learn how to train people how to speak. Like, that's what the job of the sales manager is, besides managing the culture of the team, is if John's report building sucks, guess what sales manager does every time they have a one-on With John? They practice report building. All right, which means you follow the script. No, say it again. Well, say it again. Try like this. Huh? Like, there you go, change your tone. There it is. Like, we're talking 10, 20, 30 reps on one or two phrases in the script, so they get it down.
