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-Now, do you have to isolate objections when you're face to face? Oh yeah. I'll tell you this, though, a lot less objections when you're face to face. Why?
-Because it's awkward.
CLAY: I know. So good. Humans hate, hate, hate any kind of confrontation. Now, American humans hate, hate so much more. Have you ever been to-- have you ever been to New York City? OK, well New York City to park your car involves confrontation. Honk honk. And you have to honk to let someone know you're pulling in. And they're trying to get in. And you're like-- so, people from New York are used to human combat. So, usually when you take them into a sales world, they win. They do very well.
Now, Midwest, Texas, Oklahoma, Missouri, usually people have a little less conflict going on, so they tend to have a harder time learning these sales things. Now, if you take somebody who's used to a highly intense parking situation of LA, and you bring them to a management deal, they might struggle more with the nuances of being nice to people. Where they may be used to being more pragmatic. So, everyone has their own biases they bring.
But at the end of the day, it's rapport, needs, benefits, close, isolate objection. That make sense? So, as far as the system goes. Where do you kind of go, I don't know what to do here? Do you have anything where you're going I just don't know what to do here?
-No, I understand it. It's just I am hitting a brick at the close because of the awkwardness. But, because of the wheel, that's going to, hopefully, make some kind of device for me to get past that.
-Well, if you do your close, and you just ask for the close, you won't get it. But if you write those five technical questions, which package, what date, who would be the one paying for it? When you have a steak one bite at a time, when you break it into small manageable pieces, that's how you close a deal. There's a book called Soft Selling in a Hard World that explains this in greater detail. That's the idea.
Now, let me go ahead and show you real quick here. This is the fun part. And you will get it, by the way. And by the way, when you start doing this, are you going to be awesome right away?
-You're going to jack up. So, when you jack up, would it make sense to occasionally record your appointment so you can listen to it. Not to put it on the internet and mock your customers, but so you can get better? Yeah, absolutely. Be self aware.
Final thing is expansion. Expansion. I literally talked to an entrepreneur months ago, and I was talking to her, and she says, what if I don't want to grow anymore? So, I've helped the company grow to a point where they're almost one and a half times the size they were. And she says, what if we don't want to grow anymore? Why do I have to grow? And why is that dangerous?
-Because someone will want to grow.
-So, here are the reasons why. I want you totally get this. OK? Even if you-- because eventually your business is going to blow up. And when it does blow up in a positive way-- it's growing, it's massive-- you'll start to have some these thoughts. One. Any part of the body that's not used begins to atrophy and die. You have to use the muscle. You have to-- if your business does not try to grow, it's going to contract. It's going to atrophy and die.
Second, if your business is not growing, your good people will be going. Anybody who's motivated-- unless they're like-- anyone who's motivated is not going to want to stick around a business that's not growing. Why?
-Because they've reached their max. There's no more ladder to climb.
-What kind of people are attracted to a business where there is no opportunity to grow?
-People that don't care about the business.
-I call them carp. These are bottom feeders. People who like to eat plankton and the poop of other fish. They like to come into your office, and they worked at the DMV for a few months. Now, they go work at a fast food for a few months. We all had to start somewhere. I started in fast food doing-- I started actually working in mid tempo food. I worked at Applebees. I worked at the pizza restaurant. We all have to start somewhere. But the kind of people who want to stay there, and they don't want to own their own franchise, or they don't want to grow, or they don't want to improve-- they just want to be there and make whatever they make per hour. That's a scary person. That's a demotivated person. That's a guy who maybe isn't fond of showering. That's a weird place to be. Right, OK.
Now the third is you can't stand still unless you can convince your competition to be equally mediocre and demotivated. So, I know that when I was in business, I wanted to just beat the crap out of competitors like you. I had no-- I didn't have any animosity about them. I was more like, hey, if I'm in business, I want to be the top. And so whatever I need to do to be top-- if I need to go do events for $1, I'll do it. If I need to do a ton ads, I will not stop.
Then once I got to what I deemed to be the top, as far as I wanted to go, I realized I don't have the drive anymore to push. So, I needed to either put a new CEO in charge, or I need to sell. So, I decided, I need to sell it. But if you get stuck, you will get run over. Cool?
-Now, so how do you expand? Here's what you do. Right now, today, write on a sheet of paper, what percentage of your gross sales revenue is always going to go back into advertising? Figure it out. I recommend 5%. Now you can do whatever percent feels right to you. Gross not profit. What percentage of your gross revenue goes back into the business for advertising?
Not for other stuff that you call advertising. Not like, well, I sponsored this thing for my charity I'm involved in, and they put me in the bulletin. You're not going to get a deal off of that. I'm talking about real advertisements. Like radio commercials, TV commercials, internet leads, dream 100, whatever your top three are going to be. Putting the money back.
The cool thing is as you grow, your advertising war chest will grow. You get what I'm saying? So, when our company was doing like $1 million a year, you understand how crazy that was for my competitors? Because at point I was spending-- I'm saying 5% is the minimum, but I was probably spending $100,000 on advertising at that point. And then I got to $1.5, I'm spending $150,000. And the bigger I get, the more I put back. Just, boom! It's awesome.
Alexander the Great, even though he had some personal failings, and we don't want to advocate him necessarily, what did he do when he took over a country? Remember? He would take over the country, and he'd say, hey, guys, I'm either going to kill you all, or you can come work for me. They're like, all right, I want to work with you. You can keep your culture. You can keep your religion. But I want your best people to come fight with me, and we're going to take over the world.
And they're like, certain death. Keep our culture. Can we keep our women? Yeah, you can keep your women. We're not going to rape and plunder. That's pirate talk. We're just going to let you keep your religion, keep your culture, but we want your best guys to fight. OK. So every time he conquered it grew, bigger and bigger and bigger. Wal-mart, same deal. Bigger, bigger. That's how you want to do it. Just keep getting bigger. Set aside a percent.
And the third thing-- the next thing you want to do here is more leads. So this is all different here. OK? You have more leads, but what happens when you set aside money for more leads, and you don't set aside a percentage of revenue to grow your actual capacity? Look here, it says, commit a percentage of your gross revenue to always go back and expanding your capacity. What happens if you buy more leads, but you don't set aside money to grow your capacity?
-You can't support them all.
CLAY: Right. So, what made it even crazier, is the last year I owned the business, I bought a new system almost every two weeks. So I'd buy another DJ system every two weeks. You know? Buddy of mine, he's in the jewelry business, he literally keeps expanding, expanding. He buys more and more inventory, more and more advertising, becomes harder and harder to deal with. You start off with guerrilla marketing where you're doing the least expensive marketing possible. You're doing a lot of guerrilla marketing. You're using a lot of your time and energy. But as it grows, you can start to use your money to market for you. Make sense?
So if you invest in more leads, that's great. Set aside a percentage of your gross revenue to do that. But the next is when you set aside money for more leads, also make sure you're setting aside money buy-- to expand your capacity. And I would recommend, just as a starting point, Logan, that you were set 5% of your money aside for ongoing advertising you put back into business and 5% for expansion of equipment.
-Now the thing is that we are in a digital age, and we are in an age where people have tried to automate a lot of things. Example, a lot of companies have tried to automate their customer service. Call this number, press four to do this, press three to do this, say this, this will happen. But as consumers, a lot of people get really frustrated with those systems. Right? I mean, do you ever get frustrated by those voice prompted things?
-I have something on my website that Brides and go and fill out, and it basically makes a wedding agenda. And about one in 20 get so mad at it that it explodes in my face.
-Because I spent time making it easy, and it wasn't easy.
-I would recommend you would blow up that system entirely. But I recommend that you use it when you meet them face to face. Don't make them do it, but you should use it. So, you ask them the same questions that you have on that, but you ask them. So you're typing their answers, and you're asking them. Follow the same system, but just do it face to face. Make sense?
-Awesome, my friend. Boom!
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