In a candid discussion on the Billy Rickman podcast, Alex Hormozi shares his unorthodox strategies for business growth, emphasizing the importance of crafting irresistible offers and reversing the traditional sales model. He advises against mirroring failing businesses and stresses the need for exceptional customer experiences and sales skills. Hormozi introduces the concept of 'client finance acquisition'—selling high-value services upfront to cover costs and offering discounts later—as a key driver for his success in scaling businesses. He also highlights the significance of understanding and leveraging business metrics, like attrition, average ticket, and lifetime value, for sustained growth. Hormozi's approach challenges conventional wisdom, urging entrepreneurs to be creative with their offers and to break free from industry norms to achieve profitability.
Welcome back to part two of the Billy Rickman podcast, where we talk about getting big in business. This part of the podcast, or this half of the podcast is about having an exceptional customer experience and how to blend that in a way to sell more expensive stuff over time.
This quote sets the stage for the podcast episode, highlighting the main topics to be discussed: customer experience and strategies for selling higher-priced products or services.
But the secret that no one knows is that everyone else is broke. So why the fuck would you copy them?
The quote emphasizes the flawed logic behind adopting pricing strategies from other businesses without understanding their financial situation, suggesting that such businesses may not be the best models to emulate.
Welcome to the game where we talk about how to get more customers, how to make more per customer, and how to keep them longer, and the many failures and lessons we have learned along the way.
This quote outlines the core areas of focus for the podcast episode: acquiring customers, increasing customer value, and retaining customers, while acknowledging the learning process involved in business growth.
Is that something like, it's just a part of you, or is that something you tried to now move into to remind yourself? Is it like a conscious thought?
Billy Rickman's question addresses the intention behind the noticeable change in Mosey Nation's business content, wondering if it's an innate characteristic or a strategic choice.
I think that life can be stressful enough as is. We could all be stressed if we choose to.
This quote reflects Mosey Nation's philosophy on stress management, suggesting that while stress is a common factor in life, one can choose to focus on the lighter aspects instead.
Lead gen, lead nurture. Sales fulfillment, and then resell and ascension. And depending on the size of the business, you could also include HR and finance.
This quote summarizes the critical stages of the customer journey that businesses should focus on to grow and maintain their client base.
Client finance acquisition is how I grew my gyms. It's how I grew gym lunch. It's how we did all of them so fast.
The quote explains the concept of client finance acquisition, which played a significant role in the rapid growth of Mosey Nation's businesses, emphasizing the importance of initial customer excitement in selling high-value services or products.
"And so most people, in my opinion, have it backwards. And so I got a decent amount of credit for saying downsell the upsell. I don't think I'm the one who invented it, but I don't. But it works well, because what happens is you're like, hey, do you want to have more of what you've just got for half price?"
This quote explains the essence of the "downsell the upsell" strategy, highlighting that it's more successful than the traditional upselling method.
"Right. It's a negative acquisition cost. And so now I'm making money getting new customers, and so there's really no reason to stop until you have another bottleneck."
The quote emphasizes that once the advertising costs are covered by sales, acquiring new customers effectively becomes free, leading to a cycle of reinvestment and growth.
"Usually it becomes operations, because most people don't have the skill set to lead, don't have the skill set to manage. They're entrepreneurs. They're not organized, blah, blah, blah. And so that becomes the next bottleneck."
This quote highlights that after solving the issue of customer acquisition, businesses often struggle with managing their operations effectively.
"And so then they're like, oh, my God. I have all these people coming in, and no one's staying. It's like, right, your shit sucks. That's why you didn't have people to begin with."
This quote conveys the idea that a surge in customer acquisition can expose the poor quality of a business's operations and offerings, leading to customer churn.
"Your customer service is probably just the expected level of customer service."
Billy Rickman's quote underscores the notion that what many businesses consider to be exceptional customer service is often just the standard expected by customers.
"If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, drawn out stuff, sometimes it can help hit the brain centers in different ways."
This quote offers listeners an alternative way to engage with the content, potentially catering to different learning preferences.
"I want to go back a little bit if I can, just to the acquisition, though, because I know a lot of people who were just listening to that would be like, that's awesome, Alex. I totally understand. Let's flip it. Let's get them on the high value first, and then we can deliver a reduced price later."
Billy Rickman's quote indicates a desire to delve deeper into the customer acquisition strategy discussed by Mosey Nation, recognizing its potential value to listeners.
"Straight off the bat, right? One word is sales. I'm just being like, super real with you because I think the biggest thing that is underestimated and underappreciated is making an amazing offer, right?"
This quote emphasizes the importance of sales and the power of an irresistible offer in securing high-value purchases from customers.
"But it's something that I've really kept, is like, if you have to be an amazing salesman to make the business work, the business is broken."
Mosey Nation suggests that a business should not solely rely on sales skills; instead, it should have a strong offer backed by a solid business model.
"And so the way to make any person be able to sell is to give an offer that's amazing and then let the business model and the systems and processes back up. Why it's so great."
The quote highlights the strategy of creating a compelling offer that's easy to sell, supported by the business's systems and processes that validate the offer's value.
"I would be doing two step stuff, which is I'd be closing $100 appointments. Like, pay $100 just to meet with this person because she's so amazing."
Mosey Nation discusses using positioning to create an aura of exclusivity around a service provider, justifying a higher upfront cost for appointments.
"And then I would go in and just have an assumed close for, like, two grand for extensions and whatever. That's the angle I would take."
The quote describes using the assumed closing technique to secure larger sales after establishing the value and exclusivity of the service.
"So an example would be, there's, like, a weight loss clinic that I know I'm not sharing names because they're whatever, but they would run free weight loss."
Mosey Nation provides an example of a weight loss clinic using a creative offer to attract customers by offering a primary service for free.
"And so what would happen is they would come in and they're like, we'll continue. I mean, it was like, $5 a week, something, nothing, right? And as long as you continue to buy food from us or buy bars from us or whatever, then you're good to go where the margin would be anyway, right?"
The quote explains how the clinic monetizes the offer by selling food and bars, which is where the profit margin lies, despite the primary service being free or low-cost.
"What else do you sell? You know what I mean? What else is this person who has a bad back coming in with, they probably have pain because they're overweight."
Mosey Nation encourages thinking about what additional services or products customers might need based on their primary reason for visiting, such as a chiropractor considering the needs of a patient with back pain.
"But instead you should peel off each of these things and then name them as, like, bonuses for this thing. So you could have, like, I'll crack your back and as a bonus, you're going to get this and this and this and this and this."
The quote suggests that breaking down the services and labeling them as bonuses can enhance the perceived value of the offer, making it more compelling for customers.
ng shitloads of value when it was stuff you were going to do anyways, right? Yeah. How can we be creative in how we're making offers? You find the right offer and you're golden.
This quote suggests that providing significant value through offers, especially on actions already planned, can be beneficial. Creativity in crafting these offers is crucial, and the right offer can greatly contribute to success.
Lastly on that point, it's one of my challenges I'm trying to work through anyway with my clients and certainly in the industry as a whole.
Billy Rickman is discussing the challenge of changing the mindset of clients and the broader industry regarding marketing strategies.
And I think I've heard a lot of you talking about the same thing is about breaking the limiting beliefs around this particular topic about like, no, that doesn't work in the industry.
Billy Rickman emphasizes the common issue of industry professionals believing certain marketing tactics won't work for them, indicating a need to break these limiting beliefs.
But I really love what you're doing because you're disrupting patterns and disrupting what people's beliefs are around marketing and offers.
Billy Rickman praises Mosey Nation for challenging the status quo and changing perceptions about what constitutes effective marketing and promotional strategies.
Yeah, I mean, if there's eyeballs, marketing works, period.
Mosey Nation makes a definitive statement that marketing is effective as long as there is an audience to receive it.
I had a chiropractor here and he's like, yeah, I tried Facebook ads. They don't work. I was like, yeah, it's like, I tried marketing. It doesn't work. I'm like, what? I tried marketing. I don't even know what that means.
Mosey Nation recounts an anecdote to illustrate the flawed reasoning of someone who has dismissed the entire concept of marketing based on a singular, possibly flawed attempt.
But the secret that no one knows is that everyone else is broke. So why the fuck would you copy them, right?
Mosey Nation points out the illogical nature of following the pricing strategies of other businesses that may not be financially sound.
And every day they wonder why they're still going to work.
Mosey Nation talks about the daily struggle of business owners who are not seeing progress but continue to work under the same conditions.
They still think, like, by doing the same thing, they're going to get a different result tomorrow, right?
Mosey Nation discusses the mistaken belief that repeating the same actions will eventually yield different results, highlighting a lack of strategic change.
Yeah, three things. Well, get more clients, increase your prices, and get people to buy more times.
Mosey Nation summarizes the three fundamental actions business owners should focus on to grow their business.
So if you don't know what your attrition is, can't improve it. If you don't know what your average ticket is, can't improve it. If you don't know what your lifetime value is, can't improve it.
Mosey Nation emphasizes the necessity of understanding business metrics as a prerequisite to improving them and subsequently growing the business.
And I know you're super busy, and for you to take the time out with me this morning, well, in the afternoon view there is a huge honor. And I'm just super stoked. I know a lot of people, like you said, even though we spoke about gym stuff, a lot of the information you said today is just brick and mortar. Business, small business, growth, marketing, sales, it's all the same stuff, right?
Billy Rickman expresses gratitude for the discussion and acknowledges the broader relevance of the strategies discussed by Mosey Nation, extending beyond the gym industry to all small businesses and brick-and-mortar establishments.