The Rule of 100 Ep 249

Summary Notes


In this episode, the speakers, including the host, discuss customer acquisition strategies, focusing on the importance of consistent outreach and advertising. They emphasize the 'rule of 100,' a concept introduced by Speaker A, suggesting that performing 100 actions daily, such as outreach or spending $100 on ads, can significantly improve skills and outcomes. The discussion revolves around the necessity of high volume for skill development and the positive feedback loop it creates. They highlight common pitfalls, such as insufficient volume and irregular efforts, while stressing the need for persistence and scaling through teaching others. Speaker D underscores the power of word-of-mouth in promoting the podcast, reflecting on the importance of sharing and community support.

Summary Notes

Customer Acquisition Strategies

  • Discusses the importance of consistently acquiring customers.
  • Highlights two primary methods of customer search: outbound and inbound.
  • Outbound involves reaching out to potential customers directly.
  • Inbound can be exemplified by paid advertisements, which attract customers to come to you.

If you are not acquiring customers every single week, week in, week out, then this is for you.

This quote emphasizes the necessity of continuous customer acquisition for business success.

Alright, so fundamentally, two ways you can, well, there's six ways you can search for clients, but two that I want to talk about today is gonna be outbound and inbound, right?

Speaker A introduces the focus on two fundamental customer search strategies: outbound and inbound.

So outbound being like you're actively reaching out to people and getting a certain small percentage to respond.

Speaker A defines outbound as actively initiating contact with potential customers.

And the other version of that is paid ads, which is fundamentally, again, outbound.

Speaker A explains that paid ads are a form of outbound strategy, paying for exposure to potential customers.

A certain percentage, like 1% click from the ad and then they go through the process.

Speaker A provides an example metric for the success rate of paid ads, with 1% of viewers clicking through.

Whereas when you're doing outbound, you have 1% that might respond to your outbound response and then it comes inbound.

Speaker A contrasts the two strategies by explaining how outbound efforts can transition into inbound inquiries when potential customers respond.

The Rule of 100

  • Introduces the "Rule of 100" as a guideline for practice and volume in customer acquisition efforts.
  • Suggests that performing 100 of a particular action daily will lead to improvement and tangible outcomes.
  • Implies that high skill levels can reduce the necessary volume for the same results.

So what I want to talk about here is the number one thing that I see people that mess this up is that they do insufficient volume.

Speaker A identifies the common mistake of not engaging in a sufficient volume of customer acquisition activities.

And what it basically states, and I haven't heard this from anyone, so I'm claiming it as my own, all right, is that if you do 100 of something every day, you'll likely get better at it and you'll likely be doing enough that you will be able to start seeing an outcome.

Speaker A introduces the "Rule of 100," which posits that consistency and volume in actions can lead to improvement and successful results.

If you were like the biggest master of all time, you would need to do less volume to get the same outcome.

Speaker A suggests that exceptionally skilled individuals may achieve the same results with less effort, but the rule of 100 is a general guideline for most.

Key Theme: The Importance of Volume in Skill Development

  • Volume is essential for becoming highly skilled in any area, such as advertising or cold calling.
  • High volume of activity leads to better skills and increased enjoyment of the activity, creating a positive feedback loop.
  • The "rule of 100" suggests that without sufficient volume, customer acquisition and growth are unlikely.

"Volume. And so the volume begets the skill. But the thing is, as you get better at something, you like doing it more. And so this is actually a circle that continues to reinforce itself."

This quote emphasizes that engaging in a high volume of a particular activity is crucial for skill improvement. It also suggests that as proficiency increases, the activity becomes more enjoyable, which in turn encourages even more practice.

"And so basically, it states that if you are not acquiring, like right now, if you're not acquiring customers, then you're not doing the rule of 100."

The speaker introduces the "rule of 100" as a benchmark for the necessary volume of activity to achieve growth, specifically in customer acquisition.

Key Theme: The Rule of 100 in Practice

  • The "rule of 100" is a guideline that dictates a minimum daily volume of activity (e.g., $100 spent on advertising or 100 outreach attempts).
  • This rule can be scaled up or down, but it serves as a fundamental standard for consistent effort.
  • Consistency in applying this rule is critical for growth, as sporadic efforts are ineffective.

"If you are not spending $100 per day on advertising or doing 100 reach outs per day, then how do you expect to grow?"

This quote underscores the necessity of consistent daily effort in advertising or outreach to achieve business growth, as per the "rule of 100".

"And I'm saying this, you can add zeros, you can remove zeros, whatever. But the idea is that at a base level, this is per person, this is per human being that you have that's working. If you are not doing this, then you are not going to grow, right?"

The speaker clarifies that the "rule of 100" is adaptable to different scales of business but maintains that the principle of consistent volume per individual is essential for growth.

Key Theme: Overcoming Initial Challenges

  • Beginning any high-volume activity often comes with initial difficulties and a learning curve.
  • The expectation is to start by breaking even financially with the hope of improving over time.
  • Consistent daily efforts are required despite early challenges to achieve eventual success.

"And then what's going to happen is you're going to suck in the beginning and you hope you can break even, and then over time you'll get better at it."

This quote acknowledges that initial performance in high-volume activities may be subpar, but with the goal of breaking even and the expectation of improvement over time through consistent practice.

Relationship Between Skill, Volume, and Outcome

  • Skill and volume are interconnected; increased volume can enhance skill over time.
  • High skill levels are desired, but initially, one must focus on high volume to develop skill.
  • The combination of volume and skill leads to better outcomes.
  • In the context of business, volume refers to activities like outreaches or ad spending.

"Over time, the skill will improve, and then you will get more back from your volume, right? But everyone wants to have a huge skill and do low volume to get their outcome."

This quote emphasizes the importance of patience and persistence in improving a skill through increased volume, which contradicts the common desire to achieve high outcomes with low effort.

"And then in so doing, you do more volume times the skill, and the skill gets better, and then the outcome continues to increase."

This quote explains the cyclical relationship between volume and skill, highlighting that as one improves, it amplifies the other, leading to improved outcomes.

Importance of Outreach and Advertising in Client Acquisition

  • To acquire clients, significant outreach or advertising is necessary.
  • A lack of a clear plan for client acquisition often leads to insufficient outreach/advertising efforts.
  • The speaker suggests doing at least 100 outreaches a day or spending $100 a day on ads.

"And so right now, if you're not doing 100 outreaches a day in your business or you're not spending $100 a day on ads, how are you going to get clients?"

This quote challenges the listener to evaluate their current client acquisition strategies, suggesting that a certain level of outreach or advertising is essential.

Training and Scaling Business Operations

  • Initially, business owners should focus on personal efforts in outreach and sales.
  • Skills developed by the owner can be transferred to new hires.
  • New hires may not perform at the same level as the owner but can still be effective.
  • Scaling involves teaching others and accepting varying degrees of effectiveness.

"The thing is that if it's just you running in your business, then this is going to be the cheapest thing to do because it's just selling your time right in the beginning, and you'll be able to do this."

This quote highlights the cost-effectiveness of personal outreach when starting a business, as it involves the owner's time rather than additional resources.

"And then you could teach another person and then another person and then another person how to continue to do this, because you will then have the skill that you can drop into their brains."

This quote outlines the process of scaling a business by teaching the skills developed by the owner to new team members.

"And reality is, they're not going to replicate the same result. They'll probably do it half as well or a third as well. But if you can still get 30 to 110 to one returns on the reachouts efforts that you're doing, then you can stand to have a 50% as effective person, but have ten people doing it, right."

This quote acknowledges the reality that new hires may not perform at the owner's level but emphasizes that even with reduced effectiveness, the cumulative effort can still yield significant returns.

Early-Stage Hiring Expectations

  • Business owners should not expect early hires to outperform them.
  • It is common for new hires to be less effective than the business owner in the early stages of the business.

"At the end of the day, most people, especially when you're in the earlier parts of the business, the people you hire aren't going to be better than you are at the"

This quote sets realistic expectations for business owners regarding the performance of new hires compared to their own abilities in the initial phase of the business.

Growth Through Word of Mouth

  • The podcast's expansion relies on listeners sharing it with others.
  • There are no advertisements, sponsorships, or sales involved in the podcast.
  • The host requests listeners to spread the word about the podcast as a form of support.

Real quick, guys, if you can think about how you found this podcast, somebody probably tweeted it, told you about it, shared it on Instagram or something like that. The only way this grows is through word of mouth.

This quote emphasizes that the podcast's growth depends solely on listeners sharing it within their networks, indicating an organic growth model without paid promotions.

And so I don't run ads. I don't do sponsorships. I don't sell anything. My only ask is that you continue to pay it forward to whoever showed you or however you found out about this podcast, that you do the exact same thing.

The speaker highlights their reliance on the audience to promote the podcast, as they do not use traditional advertising methods.

The Importance of Delegation in Business

  • Recognizing the necessity of delegation for business growth.
  • Understanding that others can perform certain tasks better.
  • Accepting the initial step back in sales when transitioning from solo to team efforts.
  • Scaling sales efforts by removing oneself as a bottleneck.

But ten of them will be better than you are at those things. And that was one of the biggest jumps I had to take, is that sometimes you have to take a short step back when you go from you not selling to somebody else selling, right?

This quote discusses the speaker's realization that delegation can lead to better performance in tasks and is a critical step in business development.

But you can quickly go from one person to three people to five people selling because you are no longer the bottleneck or the constraint.

The speaker explains how delegating sales tasks can lead to rapid scaling and overcoming personal limitations as a single point of failure in the sales process.

The Rule of 100 for Client Acquisition

  • The speaker suggests using the "rule of 100" as a benchmark for client outreach efforts.
  • Recommends spending $100 or reaching out to 100 potential clients daily.
  • Advises consistency in these efforts for a 90-day period to see results.
  • Guarantees customer acquisition if the rule is followed diligently.

And so just recognizing that and using the rule of 100 as a rule of thumb for any of the acquisition efforts that you are doing, I guarantee you will serve you in your life.

The speaker introduces the "rule of 100" as a guideline for client acquisition efforts, suggesting it can be a game-changer for business growth.

And so it's like, if you have not spent $100 every day, or if you have not done 100 reach outs every day and you are struggling to get clients, then do that first, and then keep doing it. Not one day. Do it every day for 90 days.

This quote details the specific actions required by the "rule of 100" and emphasizes the importance of consistency over a significant period to achieve results.

Do it every day for 90 days. And I guarantee you, you will have customers by the end of that process.

The speaker promises that adherence to the "rule of 100" with daily commitment over three months will lead to successful client acquisition.

Engagement and Farewell

  • The speaker expresses hope that the audience found value in the content.
  • Encourages interaction through likes and comments.
  • Concludes the podcast with a farewell and the promise of future content.

Hope that was valuable for you. If you did enjoy this, drop a, like, drop a comment, and I'll see you guys soon. Bye.

The speaker closes the session by asking for audience engagement and hints at continued content delivery in the future.

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