Business Breakdown

In this video Alex talks about how to get people to buy. He starts out by sharing a concept from the software world but really any business in my opinion. What is the thing that gets people to want to buy.

He uses this diagram to illustrate his points. You plot out the features/the things people had the highest willingness to pay for to find what people valued the most out of your product/service. The four things that Alex used were exclusive:

• Access

• Content

• Events

• Newsletter (which could be under content)

ACCESS

Alex talks about how he did this in his gym consulting business and gave gym owners exclusive access to talk to him during the day.

I’m sure Alex offered more services that were valuable but this alone was valuable for some gym owners. Imagine having the ability to talk to an expert in your field, who has owned your exact business before, whenever you want.

Don’t make a list of features that all together are valuable, instead make valuable features that on their own are worth a lot and then package them into one thing. Figure out what your ideal client values the most and what they want. Create one product/service that people would pay for by itself and you could either just offer that or package that into a larger deal. People only need 1 reason to buy.

EVENTS

Someone asked a question about how to decrease churn after an event. Churn increases after events because people are satisfied with what you did and don't feel the need to buy from you because they think they got it all during the event.

I don’t know the exact situation but they guy said he should have changed it to you pay for 12 months to get access to the event. Alex agreed with this and said change it from “I’m missing out on this thing” to “I can’t wait until I get this thing.” To decrease churn, tease the next event or the next thing to get people coming back.

Alex says you can up-sell people at the event but don’t make a long pitch because the people there already trust you.

CONTENT

Here Alex talks about content and interviewing successful students. This is great strategy to grow your business, and it helps in 3 different ways:

1. Testimonial

You are interviewing a student who found success with your product/service. By doing this, other people see that what you offer works and someone like them was able to make it work. Your best marketing comes from clients. This builds trust with your audience and makes people think “if it worked for him it might work for me.” Walk the prospect through why they made the decision, this will convince other prospects. The framework he uses is this:

Before Questions:

What was life like internally?

What were the external things people would observe about you?

This shows pain before the person bought your product/service which will appeal to some people watching.

During

How did you hear about us?

What were the things that you were most concerned about? (Internally)

What made you take the next step?

This gets the buyer to explain why they bought (more on this in a bit)

After

What is life like now?

This shows what life is like after they bought your product/service.

2. Pitch

As you are interviewing your student, you are basically pitching your product/service during the entire interview. By asking the questions above you can address people’s objections to buying your product/service and get them to explain why they still followed through with the purchase, which will persuade your audience and build trust.

3. Content

Sam Ovens joined in and said that this is a great idea because you can repurpose your interview. You can use it as YouTube or podcast content (and even break those into shorts) and you can run part of it as an ad which is good because it’s not you talking about how good your service is.

Alex went into a story about someone who also consulted gyms and how that person sold the same number of people and his cost to acquire customers was the same, but Alex had 70X more profit. The difference was the guy’s customer was worth $5k and Alex’s were worth $46k.

The guy ran ads that said, “if you are in fitness come to me and I'll help you” but Alex’s ads said, “you have to be a gym owner, with a signed lease, at least 1 employee, and at least 30 members.”

Alex did this by doing something very smart, he looked at who his top 20% customers were and asked what they have in common. After studying this, he used this new information to only attract more of those people.

With this information he was able to identify exactly who his ideal client was and his highest value client. He then called out his ideal and most valuable customer in the ads and only worked with them.

This is a great way to increase conversion, increase the efficiency of your sales team, simplify your acquisition, and ultimately increase sales. Don’t attract more customers attract better customers.

Takeaways

• It is so important to know who your ideal client is so you can tailor all your features or services to meet their needs. Don’t make a list of features that add to a price, make 1 valuable feature that on its own is worth it.

• If you are just starting out, I would recommend finding the one thing your ideal clients values the most and making that your main service. Doing this you will only attract the same type of client which will allow you to become an expert at solving that problem. Once you are an expert you can add more services.

• Packaging more services that by themselves are valuable will allow you to increase your price.

• If you are already experienced consider creating a new product and mastering that to attract a slightly different client avatar, maybe this new avatar has more money or maybe there are way more of them. You can have features that speak to multiple avatars of your business you don't need just one.

• Attracting more clients is not always the answer. Sometime to increase profit you need to figure out who your highest paying clients are and focus on attracting them.

Action Guide

Next Steps

• Figure out what gets people to buy your product/service

• Create one valuable feature/service that is worth it on its own

• Consider packaging multiple valuable features together to increase prices

• Interview your successful clients and repurpose it into testimonials and ads

• Find out who your highest value clients are and focus all marketing efforts to attract only them