This Formula Makes My Sales Grow On Autopilot (use with clients)

Summary

The video script outlines a strategic approach to scaling a business by focusing on identifying and resolving key constraints. It details the process of auditing a business to increase lead flow, conversion rates, and revenue, using metrics rather than emotions. The speaker emphasizes the importance of ROI calculators, case studies, and sales assets to drive business growth, while also discussing tactics to improve lead conversion and show rates, ultimately aiming for a scalable and healthy business model.

Takeaways

• 📈 The business in focus is an OnlyFans management agency that helps owners start similar businesses, emphasizing the importance of selling based on metrics rather than hope or dreams.
• 💰 The current asking price for the business is $99.8k, which is considered decent, especially considering the coaching offer being pushed.
• 📊 The business has been receiving 1,200 leads per month, but there are significant conversion issues, with only 7% of leads booking calls and 45% of those showing up.
• 📞 The close rate is at 21%, which is considered decent given the price point of the offer, and the average cash collected per close is $5.7k, indicating a strong upfront cash flow.
• 🚀 The cost of acquisition per customer is $1.7k, which is a healthy ratio when compared to the cash collected per close, allowing for reinvestment in business growth.
• 🔍 The main constraint identified is the low lead to call conversion rate, suggesting a need for better strategies to convert leads into booked calls.
• 📉 The show rate of 45% is seen as a problem, indicating that a significant number of booked calls are not being honored, which needs to be addressed.
• 📈 The business has a high gross margin, which is healthy and suggests scalability, but there's room for improvement in the contribution margin.
• 📚 The speaker emphasizes the importance of using case studies and sales assets to build trust and sell effectively, rather than relying on emotional appeals.
• 🎯 The strategy includes increasing lead flow through better use of social media reach, improving conversion rates, and focusing on metrics to optimize the sales process.
• 🛠️ The plan involves auditing and optimizing various aspects of the business, including the sales script, lead generation, and the appointment-setting process, to increase efficiency and revenue.

Q & A

What type of business is being discussed in the transcript?

The business discussed is an OnlyFans management agency that helps other agency owners start their own OnlyFans management businesses.

What is the main issue with the current selling approach according to the speaker?

The speaker criticizes the selling approach based on hope, dreams, or potential growth without concrete metrics, advocating for selling based on actual business performance data instead.

What is the current asking price for the business being discussed?

The current asking price for the business is $99.8k, which is higher than the typical $9.8k for the type of coaching offer they are pushing.

What is the average monthly lead flow for the business?

The business is getting 1,200 leads per month.

How many calls were booked in the last 30 days, and what was the show rate?

In the last 30 days, 82 calls were booked with a show rate of 45%, meaning 39 calls actually took place.

What was the close rate and the average cash collected per close in the last 30 days?

The close rate was 21%, and the average cash collected per close was $5.7k.

What was the total ad spend and sales team cost in the last 30 days?

The total ad spend was $3,000, and the cost for the appointment-setting sales team was not specified but acknowledged.

What is the main constraint identified in the business, and why is it problematic?

The main constraint is the low lead to booked call rate of 7%, which is below the desired 10% to 15%, indicating a problem in converting leads into booked calls.

What is the strategy to improve the business's lead flow?

The strategy includes creating attention-grabbing sales assets, optimizing the school landing page, and increasing ad spend to convert the large social media reach into more leads.

What is the speaker's approach to solving the business's conversion problem?

The speaker suggests focusing on increasing the number of leads who provide their information, improving the lead to call rate, and enhancing the show rate through various strategies like creating valuable content and optimizing the sales process.

What is the speaker's view on the importance of the average cash collected per close?

The speaker considers the average cash collected per close as one of the most important metrics because it indicates the amount of capital available to reinvest in business acquisition.

How does the speaker plan to scale the business to $200,000 per month?

The speaker plans to scale the business by setting clear daily targets, reinvesting resources, and auditing metrics and sales processes to ensure they align with the growth goals.

What is the role of a promo cycle in the speaker's strategy?

A promo cycle is used to offer a special promotion to potential clients, aiming to increase the lead to booking rate by providing an attractive offer based on a successful case study.

How does the speaker plan to address the issue of show rate?

The speaker plans to address the show rate issue by creating pre-qualifying assets, auditing the back-end systems for automation and workflows, and potentially introducing an SMS triager to follow up with leads.

Outlines

00:00

📈 Business Auditing and Metrics Analysis

The speaker discusses the importance of auditing a business to identify its constraints and potential for growth. They provide an example of an OnlyFans management agency, analyzing its lead conversion rates, call booking rates, show rates, and close rates. The agency's current price, lead flow, ad spend, and sales team costs are scrutinized. The main constraints identified are the lead to call rate and show rate, with suggestions to improve these metrics for better business performance.

05:03

🚀 Scaling Business Through Lead Generation and Optimization

This paragraph focuses on strategies to scale a business by increasing lead flow and optimizing conversion rates. The speaker identifies the main constraint as the inability to convert high levels of social media reach into leads. A plan is outlined to increase lead generation through case study breakdowns, sales letters, attention-grabbing assets, and aggressive advertising. The goal is to improve the business's lead to call rate, show rate, and ultimately, revenue and cash collection.

10:06

🛠️ Business Optimization and Growth Strategy

The speaker outlines a two-phase approach to optimize and grow the business. Phase one involves creating a compelling case study and sales letter, auditing the client's data collection methods, and generating attention through weekly sales assets. Phase two addresses the lead to booking rate issue with promotional offers and a new video sales letter (VSL) funnel. The plan also includes assigning specific setters to platforms, setting targets based on desired business growth, and auditing metrics and scripts regularly to ensure alignment with KPIs.

Keywords

💡OnlyFans Management

OnlyFans Management refers to the business of assisting individuals in managing their presence on the OnlyFans platform, which is a subscription-based content sharing service. In the video, the business in question is helping agency owners to start their own OnlyFans management businesses, indicating a focus on the growth and optimization of online content creator businesses.

💡Lead Flow

Lead Flow refers to the number of potential customers or leads that a business generates over a period of time. In the context of the video, the business is receiving 1,200 leads per month, which is a key metric for understanding the business's customer acquisition strategy and potential for growth.

💡Booked Call Rate

Booked Call Rate is the percentage of leads that result in a scheduled call or meeting. The video mentions a 7% booked call rate, which is identified as an area of improvement. This metric is crucial for evaluating the effectiveness of the sales process and the conversion of leads into engaged prospects.

💡Show Rate

Show Rate is the percentage of booked calls that are actually attended by the lead. In the video, a 45% show rate is mentioned, indicating that there is a significant drop-off between booking and attending calls. This is a critical metric for assessing the reliability of leads and the effectiveness of the lead nurturing process.

💡Close Rate

Close Rate is the percentage of attended calls or meetings that result in a sale. The video states a 21% close rate, which is considered decent given the price point of the offer. This metric is essential for understanding the sales team's ability to convert prospects into customers.

💡Average Cash per Close

Average Cash per Close refers to the average amount of money collected for each closed deal. The video mentions an average of $5.7k per close, which is a significant figure indicating the revenue potential of each customer acquisition.

💡Cost of Acquisition (CAC)

Cost of Acquisition (CAC) is the cost associated with acquiring a new customer, including marketing and sales expenses. In the video, it is calculated that the business spends $1.7k to acquire a customer who pays $9.8k, demonstrating a healthy return on investment for each new customer acquired.

💡Gross Margin

Gross Margin is the difference between revenue and the cost of goods sold, expressed as a percentage. The video discusses the importance of maintaining a gross margin of 70% or above, which indicates that the business is healthy and profitable after accounting for the direct costs of sales.

💡Contribution Margin

Contribution Margin is the amount of revenue remaining after variable costs have been covered. It is used to cover fixed costs and contribute to profit. The video mentions a contribution margin of around 25%, which is a positive sign for the business's financial health.

💡Sales Funnel

A Sales Funnel is a multi-step process that guides potential customers from initial interest to a final purchase. The video discusses the need to launch a VSL (Video Sales Letter) funnel to improve the conversion of leads into customers, highlighting the importance of a structured sales process.

💡Promo Cycle

A Promo Cycle refers to a promotional period or campaign designed to drive sales. The video suggests using a promo cycle with a specific offer to improve the lead to booked call rate, indicating a strategy to incentivize potential customers to engage with the sales process.

💡Roi Calculator

An Roi Calculator is a tool used to calculate the return on investment for a business. The video emphasizes the importance of using such a tool to make data-driven decisions rather than relying on emotions or hopes when selling a business.

💡Constraints

In the context of the video, Constraints refer to the limiting factors or bottlenecks in a business process that prevent it from performing at its full potential. The speaker identifies several constraints, such as the lead to booked call rate and show rate, and discusses strategies for addressing these issues to improve overall business performance.

💡Attention Generating Sales Assets (AGSA)

Attention Generating Sales Assets are marketing materials designed to attract potential customers and generate interest in a product or service. The video mentions creating AGSAs on platforms like Twitter to drive engagement and lead generation.

💡Superhero Founders

Superhero Founders likely refers to a group or community of business owners who are portrayed as capable and successful, possibly part of a private group or program mentioned in the video. This term is used to evoke a sense of empowerment and high achievement among business leaders.

Highlights

The business under discussion is an OnlyFans management agency that helps owners start their own OnlyFans management businesses.

Emphasis on selling based on metrics and ROI rather than hope or dreams to ensure a realistic business valuation.

The current price of the business is $99.8k, which is considered decent for the coaching offer being pushed.

The business generates 1,200 leads per month, indicating a significant lead flow.

Out of the 82 calls booked in the last 30 days, only 39 showed up, indicating a show rate problem.

Eight closed deals were made with a total cash collection of $46k in the last 30 days.

The ad spend was only $3,000, demonstrating an efficient marketing strategy.

The sales team, specifically the appointment setters, play a crucial role in the business's operations.

The main constraints identified were the lead to booked call rate and the show rate, both below optimal levels.

A 21% close rate is considered decent given the price point of the offer.

The average cash per close is $5.7k, a strong metric for the business's financial health.

The cost of acquisition per customer is $1.7k, which is sustainable given the average cash per close.

The cost per lead is only $3, indicating a very low customer acquisition cost.

The business has a healthy gross margin of over 70%, which is scalable.

The biggest constraint is the inability to convert the high traffic into leads, with only 1,200 leads from 400,000 Instagram reach.

A strategy to increase lead flow by improving the conversion of attention into leads is proposed.

The plan includes creating case studies, sales letters, and attention-grabbing sales assets to enhance lead generation.

The importance of auditing metrics and focusing on daily targets for business growth is highlighted.

A detailed plan for phase two includes solving the lead to booking rate issue and launching a VSL funnel.

The strategy involves assigning Setters per platform to improve the booking rate and response rate.

The business aims to reinvest resources and talent to meet increased targets for growth.

A continuous auditing process is proposed to maintain and improve the business's performance.

Transcripts

context on this business that we found

they're running an only fan management

agency uh they're essentially come

coming in and helping agency owners uh

start an O only fans management business

this was the last 30 days of their

business and if anyone ever wants to

kind of like sell really well the best

way you can do so is by auditing the

business and selling based off of

metrics and not necessarily sell based

off of Hope or or dreams or like hey

yeah if you buy this we can potentially

grow the business or you're going to get

rich

no nobody's going to pay you tens of

thousands of dollars because you're

telling them that like hey if you buy

this you might potentially 10x your

business no I mean even all our partners

in the incubator everywhere every single

person needs to have an Roi calculator

or something that calculates and finds

the leaks within a business the

constraints and use those constraints to

sell the business no more selling based

off of of emotions so here's how we went

through so I was like hey what is your

current price he told me that it's 99.8k

normally 9.8k for the type of offer that

he's pushing because he's still pushing

like a coaching offer I was like yeah

this price is is decent okay then the

next thing I asked is like hey how much

lead flow are you getting per month he

said 1,200 leads I was like okay cool

perfect and then I was like hey how many

call are being booked in the last 30

days he said 82 calls and then he says

how many of those did showed up he said

39 and then I was like hey how many

closed deals he said eight how much is

was Cash collected I said 46 uh 46k and

then ad spend he only spent $3,000 in

ads in the last 30 days uh and then

sales team cost this is appointment

setting appointment setter sales team I

was like okay perfect and then based on

these numbers I was like what are the

main what are the main leaks as you guys

can see the first leak or the first

constraint we saw that it was lead to

booked call rate he uh getting 7% of

everyone who becomes a lead or who joins

his school Community to book a call this

is I wouldn't say that it's like if I

look at it I wouldn't be like oh my God

this is such a big constraint no but

it's still in the red if you're getting

10% I think 10% to 15% is great right

but 7% we still put it in red or at

least the the formula put it in red

because it's below our kpi show rate is

also a big problem 45% of everyone who

books a call shows up and I believe they

only have one uh one call close so they

don't have a reason to have less more

than 50% of people to not show up so

that was a big constraint close rate was

21% this is decent because of the price

there's this framework around deciding

if you increase price or not increase

price and that that framework is if

you're let's say selling something for

$4,000 and you have 35% close rate

you're probably better off increasing

price and reducing close rate because

well not better off but like you need to

find equilibrium where the close rate is

at a good point where the also the price

point is good enough where you make the

most amount of money if you increase

price but your close rate drops to 10%

then it's it's a it's a it's a it's a

stupid decision because you're losing a

lot more deal flow because you're trying

to make more money per client and here

at almost 10K 20% close rate is amazing

it's like flush it's perfect so that's

why this is in green we prefer having a

business doing 20% or more in the close

rate people always aim to be like hey

let's close 30% I'm like yeah that's

good but like to close every stranger

for 30% is is insane the amount of work

you have to do up front Okay average

cash per close is 5.7k that means that

for every single deal that they're

closing they're collecting on average

5.7k which is amazing this is this is an

insane metric the amount of cash you get

upfront is probably one of the single

most important metric because then he

has 5.7k to go and reinvest in

acquisition and acquire maybe I mean

let's look at here to cost of

acquisition per customer so right now

he's spending 1.7k to acquire someone

who's going to spend 1 19.8k if he's

cash collecting 5.7k that means that if

you divide a 5 7K divided by um let's

say 2K he can go acquire two to three

more clients to essentially pay him this

much without having to front any money

from his pocket this is an amazing

business well not an amazing business

but it's it's a healthy business average

cash per call we like to look at this

metric too because uh everyone just

focuses on how many how much money they

make for each client that they close but

we like to actually look at for every

single booked call that shows up on

average how much money are you making

cost per lead is three bucks now this is

actually the true cost of school uh

registrations which is he's getting I

think3 to four do which is insanely

cheap but we're going to talk about the

actual problem here right cost per book

to is $41 but this is actually more than

than that because it's not just at spend

he's spending on Setters and he's also

getting calls from other places and then

uh cost per book call that shows up 93

uh fulfillment cost we also asked him

hey how much are you spending on your

backend he said 8.4k uh we're like okay

cool any business that we're looking at

we like to look at gross margins that

are I believe 70% and above so if a

business is if the gross profit is less

than 70% gross profit or gross margins

is when you take Revenue so the 99.8k

you subtract uh the cost of fulfill so

it would be like 787 let's use on

Revenue 78k minus uh this 88.4k you

actually get Prett good margins on gross

profit so this business is healthy and

it's scalable but we also like to look

at contribution margin which is uh

revenue or cash uh minus um the cost

acquired clients in this case this is

still pretty healthy because um it's

around 25% that he's spending on CAC and

everything this is NBL my private group

for superhero Founders last Sunday this

community participated in something that

has never been done before I am building

a business Empire to scale it to $50,000

per month in just 30 days while

documenting the entire process in four

live calls one call every Sunday in this

video I went over the sales system that

allows me to identify every constraint

in my own or my client's businesses so

that you can incorporate this in your

delivery process the three previous

calls showed three-hour breakdowns of

processes like offer creation pay

traffic and client acquisition if you

want access to all the recorded calls

from The Challenge click the link in the

description to join NBL and I will see

you there now the most important leak we

focused on was not this lead to show uh

lead to call rate or even the show rate

what we first looked at was like how

much views are you getting on YouTube he

said 4,000 and then I was like okay cool

how much reach are you getting on

Instagram he said 400,000 reach accounts

reached in the last 30 days I was like

okay so you're telling me that you're

getting this much reach but you're

getting only 1,200 leads I was like

something is broken in your business you

should be getting infinitely more lead

flow in your business right now because

you're getting way too much attention

and where's the all that attention going

to how are we not collecting data how

are we not collecting leads that we can

reach out to the biggest constraint is

he not able to convert the traffic the

level of traffic that he has into

attention so priority number one

constraint number one we focus on is

like hey we need more people giving you

information joining the school community

and then we're going to focus on lead to

uh call rate so the conversion from

leads coming in them booking and then

the thing next thing we're going to

focus on is show rate so how many people

we actually get to show up the way that

we did it right now we know that the

business problem biggest constraint is

the fact that you're not getting enough

people to give you their information so

I was like hey if we didn't even change

none of these other metrics and we just

focused on increasing more leads in your

business so we took it from 1,200 leads

to 3,000 leads and chain kept everything

similar kept the 7% kept the 45% show

rate kept the close rate 20% we would

take the same business and get it to two

225k uh cash collected and over 380k

Revenue if we could improve it maybe

take the 7% to 10% uh and then 6 45% sh

rate to 65% sh rate uh we could take the

same uh take this numbers here get to

3,000 which would end up being 300 sales

calls a month the show rate we would uh

take it from 45% to 65% which is 195

calls that actually show up and then

from the same close rate uh 20% we Clos

39 clients uh times the average cash

collected uh which is 225,000 and times

the revenue which is 99.8k for each

value of each client it would be a

almost a

$400,000 uh business all because we just

got more leads in the business and he

already has the leads it's just that

he's not giving them enough

offers for them to opt in phase one is

going to be I need an asset for him I

need one of the best case studies that

he has and we're going to be building

out a breakdown of this case study the

reason why we like to do breakdowns is

because instead of goinging to people

and trying to sell them something how

about you use someone who's actually

going through the transformation and

sell based on the case study on the

transformation so we're going to do this

create a banger sales letter then we're

going to look at the school landing page

he's already getting pretty cheap cost

per lead so that school landing page is

dialed in in my opinion but we're going

to look at it then every single week

we're actually going to be creating

attention generating sales assets which

are like two steps so two steps are

something like this here you essentially

just do a two-step on your profile right

you create an asset which is like an

attention generating sales asset I do

these on Twitter often and then the

actual asset is maybe a YouTube

breakdown so this is the actual agsa so

attention generating sales asset so

we're going to be creating these on

behalf of the client every single week

then we're going to be creating the

actual sales letter or the piece of the

sales asset on YouTube every time you

create a good sales asset or good

content on YouTube you should always

have something for people to download

because people are always going to be

giving you their information in exchange

of value even if the value is pretty

clear in the training people will be

willing to put in a little bit of uh

effort to give to get the let's say the

Google Doc because or the Lucid chart

because even though they've understood

they still want to have like a

summarized version of the thing and easy

to consume asset so we're going to be

doing this every single week and then

the last step we're going to be doing to

increase lead flow is just go hard on

ads we're going to go top of funnel

we're going to go retargeting and

actually get the 400,000 reach that he's

getting to to be to be uh to join his

ecosystem we start with the one really

good case study one really good sales

letter then we look at the way that he's

uh collecting data then we're going to

work on something that is a little

harder ads we could do it first but this

here is what I'm really care what I

really love because this is a little

harder and it's a bit boring and it's a

little Annoying which is why most people

don't do it and that's why most people

don't ever create a good engaged

audience the next thing we're going to

do is phase two we're going to to solve

the lead to book rate uh lead to book

booking rate we're going to be pushing a

promo right like hey if you want to

experience the same transformation as

the case study uh we're doing one-on-one

we'll design road map if you want our

help in implementation and we'll

essentially do a promo and a promo cycle

with a specific offer then we're also

going to launch a vsl funnel right now

he doesn't have a single booking funnel

he's only getting people through school

and things Instagram and the Setters are

setting through there but we're actually

going to be launching a funnel so we can

retarget his his reach and get them to

book a call with the same offer here

setting process we're going to audit the

metrics for Instagram setting and all

the other platforms he has telegram

School Instagram and uh maybe Twitter

and then we're going to look at response

rate we're going to look uh look at

qualification based on platform and

we're also going to look at booking rate

based on the platform whichever platform

is killing it the most we're going to

try to do more of that and then the next

thing we're going to do is we're going

to assign each Setter per platform right

now he has only two Setters who are

working on Instagram working in school

and working on telegram so they're

sharing multiple platforms and that is

not good whatsoever so we're actually

going to be also uh doing a signing of

platforms once we have dialed in the new

campaign the new uh ads the new funnel

and the new process for setting and

maybe if he needs more Talent we're

going to help him get Talent we're

actually going to set targets based on

where we're taking the business so if

we're taking the business to $200,000 a

month in the next I would say four

months then we're going to reverse

engineer $200,000 a month what does that

look like daily lead flow what does that

look like booking link send how does

that look like with daily outage how

what does that mean book calls daily

what does that mean book calls taken how

many closes deal every day and then

we're going to reinvest resources

Capital Talent everything content to

meet these targets it's less about

working hard and more so getting clarity

as to yes you want to get to $100,000

per month but do you know what needs to

happen every single day from your

machine from your business in order for

you to get there a lot of people are

super emotional when it comes to growing

a business so they only focus on the

fire that's going on and they forget

that business is is not an emotional

game it's find something that's valuable

and figure out the daily metrics to get

it in front of more enough people where

enough people want to buy and enough

people get value and just keep that fly

whee going I'm sure even people who have

know somewhat the the goals the targets

they always forget and Retreat back to

just being emotional and then every

single week we're just going to be

focusing on auditing metrics look at hey

what is out of kpi what is in kpi then

we're going to audit the conversations

from the Setters then we're going to uh

if it's out of kpi then we're going to

come up with another Focus uh when it

comes to show up rate uh it's going to

be mainly solved on three fronts there

going to be more preall assets so we're

going to create a series of valuable

content and uh nurturing assets then

we're going to have a preall systems so

we're going to look at the back end uh

see if there's any automations missing

if the the flows are weird we're going

to audit that we're also going to create

a new workflow for the Setters so that

they essentially follow up the leads uh

make sure that group chats are created

with the setter and the closer every

time someone is set all that good stuff

and if needed we can introduce a phone

uh an SMS Setter or triager uh to

essentially increase show rate and then

um we're also going to be looking at his

sales script uh the sales pitch the

sales uh deck or the sales asset that he

uses to pitch and we're going to be

auditing that because right now he has

no framework or no clear structure