7FigureFlow io Systems Lucidchart 1 August 2024

Summary

Ser Gatari, founder of Clown Acquisition, discusses strategies for business growth and sustainability beyond traditional models. He emphasizes the importance of trust-building through free educational content to create goodwill and highlights the pitfalls of commoditization in marketing. Gatari outlines a multi-layered approach involving education, service, and partnership to ensure scalable growth and long-term client relationships, advocating for a business model that values durability and leverage over quick fixes.

Takeaways

• 📈 The speaker, Ser Gatari, runs a growth firm called Clown Acquisition that specializes in identifying and implementing infrastructure to elevate business constraints and increase throughput.
• 🔄 Companies often fail to scale due to bottlenecks, which Ser Gatari's firm addresses by using researched systems and processes to handle increased volume.
• 💡 The traditional business growth model involves offering a service or product, finding a traffic source, and converting traffic into sales through a funnel. However, this model is becoming less effective due to market saturation and increased competition.
• 🤔 The speaker emphasizes the importance of creating goodwill in the marketplace to ensure business sustainability, rather than solely focusing on immediate monetization.
• 🚀 Ser Gatari shares his personal journey from an agency owner to a business scaler, highlighting the transition from a commoditized service to a high-value infrastructure implementation model.
• 💰 The speaker discusses the inefficiency of traditional sales funnels and the high costs associated with scaling them, including the need for new creatives, managing conversion rates, and hiring additional staff.
• 🔑 The key to sustainable growth is to create more value than you extract from the market, focusing on building trust and offering tangible assets rather than just advice or information.
• 🔑️‍💻 The speaker advocates for an education-based front end to nurture leads and build goodwill, which can then be leveraged into high-value sales and partnerships.
• 💼 In the service layer, the focus should be on building and releasing systems that can be implemented across multiple businesses, creating a scalable and efficient service model.
• 🤝 The partnership model involves working closely with successful clients, offering them a percentage of growth or ownership in exchange for services, leading to long-term, leveraged income.
• 🌐 The speaker warns against relying solely on one business model or strategy, instead advocating for a diversified approach that combines education, service, and partnership to ensure business durability and success.

Q & A

What is the primary function of Clown Acquisition as described by Ser gatari?

Clown Acquisition is a growth firm that enters companies to assess their current status and future needs, implementing infrastructure that elevates constraints and allows for more business throughput.

Why do companies struggle to scale according to the training?

Companies struggle to scale due to various bottlenecks within their business structures that prevent efficient growth and throughput.

What is the traditional method of growing a business as outlined in the script?

The traditional method involves identifying a service or product to sell, finding a traffic source to get eyeballs, and using a funnel to convert attention into desired actions like sales or bookings.

What happens when all businesses use the same service and advertising channels?

When all businesses use the same service and advertising channels, they become commodities, lose pricing power, and face increased competition, leading to reduced margins.

How does the market sophistication affect the efficiency of traditional sales funnels?

Market sophistication leads to inefficiency in traditional sales funnels as people become familiar with the same offers and layouts, reducing the effectiveness of the funnel.

What is the main purpose of the education business model mentioned by Ser gatari?

The main purpose of the education business model is to build trust with the audience by providing valuable content and insights, which can later be leveraged to create goodwill in the marketplace.

Why should the education content be free according to the script?

The education content should be free to lower the barrier to entry and to build goodwill without immediately trying to monetize the audience's attention.

How does Ser gatari differentiate between a traditional sales funnel and the model he promotes?

Ser gatari differentiates by emphasizing the importance of building trust and providing value through education before monetization, as opposed to the direct conversion approach of traditional sales funnels.

What are the three main components of the business model discussed in the training?

The three main components are the education business for trust-building, a service layer for delivering value, and a partnership or ownership layer for long-term growth and profitability.

How does the script define sustainability and durability in business?

Sustainability and durability in business are defined by creating more goodwill than is extracted from the marketplace and by structuring the business to be resilient and capable of long-term growth.

What is the monetization strategy for the service layer in the business model?

The monetization strategy involves charging a setup fee upfront and potentially a monthly service fee, focusing on selling tangible assets and systems rather than just advice or information.

How does the partnership model work in the context of the business?

The partnership model works by offering a percentage of the business's growth in exchange for services, allowing for a leveraged income stream and the potential for long-term wealth generation.

What is the importance of vetting potential partners in the business model?

Vetting potential partners is crucial to ensure they are trustworthy, have a validated offer, and are consistent, reducing the risk of failed partnerships and ensuring a strong foundation for growth.

Why does Ser gatari emphasize the importance of not relying solely on one business model?

Ser gatari emphasizes this to highlight the need for a diversified approach that combines different business layers to ensure sustainability, scalability, and resilience against market changes.

Outlines

00:00

🛠️ Business Growth and Infrastructure Implementation

Ser Gatari introduces himself as the head of Clown Acquisition, a firm that specializes in business growth. He explains their role in identifying a company's current state and future needs, then implementing infrastructure to overcome constraints and increase business throughput. He contrasts the traditional business growth model with the innovative approach his firm takes, which includes researching industry trends and insights to scale businesses sustainably. Ser shares his personal journey from a small agency owner to a consultant commanding significantly higher fees. The paragraph emphasizes the importance of differentiating a business to avoid becoming a commodity and losing pricing power.

05:02

📈 The Evolution of Business Growth Strategies

This paragraph delves into the traditional method of growing a business, which involves offering a service or product, finding a traffic source, and using a sales funnel to convert attention into sales. The speaker discusses the challenges that arise when businesses become commodities, leading to reduced margins and increased advertising costs due to market saturation. He highlights the inefficiency of using the same acquisition channels and sales funnels, which can turn off potential customers and lead to business failure within a few years. The paragraph concludes with the speaker's intention to share a more sustainable and durable business model.

10:02

🏆 Building Trust and Goodwill in the Marketplace

Ser Gatari discusses the importance of trust in the 'trust economy' and how Clown Acquisition focuses on creating goodwill before monetization. He emphasizes the power of investing in clients more than taking from them, which fosters long-term relationships and high-value partnerships. The speaker outlines the three-layer business model: education, service, and partnership. He explains the purpose of the education business as a trust-building mechanism, advocating for free content to attract leads and build goodwill, which is essential for sustainable business growth.

15:05

📊 The Efficiency of the Education-Based Funnel

In this paragraph, the speaker breaks down the efficiency of using an education-based funnel compared to traditional sales funnels. He argues that by offering free educational content, businesses can create goodwill and attract leads at a lower cost. This approach results in higher conversion rates, lower customer acquisition costs, and ultimately, more significant lifetime value (LTV) for the business. Ser Gatari also points out that this model is infinitely scalable and requires less management compared to traditional funnels that need constant optimization and team scaling.

20:05

🤝 The Art of Building and Releasing Services

Ser Gatari explains the 'build and release' model used in Clown Acquisition's service layer. The focus is on creating systems, processes, and talent pools that can be implemented across multiple companies. This approach allows for scalability and efficiency, with the service layer being monetized through setup fees and front-end marketing. The speaker emphasizes the importance of selling tangible assets rather than just advice or information, which can lead to higher client commitment and satisfaction.

25:05

💼 Growth Partnerships and Long-Term Business Relationships

The speaker discusses the concept of growth partnerships, where Clown Acquisition offers fractional marketing and sales services in exchange for a percentage of profits. He highlights the importance of vetting potential partners to ensure a strong and trustworthy relationship. Ser Gatari explains the monetization strategy for partnerships, which includes a service fee and a percentage of the cash collected. He also touches on the potential for acquiring businesses or maintaining a percentage of growth for long-term收益.

30:08

🏦 The Importance of Diversifying Business Models

In the final paragraph, Ser Gatari stresses the importance of not relying solely on one business model. He uses Apple as an example of a company that has successfully diversified its offerings, creating an ecosystem that provides ongoing value and revenue. The speaker encourages viewers to become knowledgeable in various aspects of business, including information products, agency consulting, and growth partnerships, to ensure long-term success and sustainability.

Keywords

💡Growth firm

A growth firm, as mentioned in the script, is an organization that specializes in helping businesses expand. They assess a company's current state, identify areas for improvement, and implement strategies to facilitate growth. In the video, the speaker runs a growth firm called 'Clown Acquisition,' which focuses on identifying and resolving bottlenecks in businesses to increase their throughput and scalability.

💡Infrastructure

Infrastructure in the context of the video refers to the basic physical and organizational structures needed for the operation of a society or enterprise. The speaker discusses implementing infrastructure to elevate constraints in businesses, which involves putting in place systems and processes that enhance a company's capacity to operate efficiently at a larger scale.

💡Bottlenecks

Bottlenecks are the limiting factors or restrictions within a system that prevent it from functioning at its full capacity. The script mentions that companies often fail to scale due to various bottlenecks that the speaker's firm identifies and addresses, allowing for smoother operations and growth.

💡Commoditization

Commoditization occurs when a product or service becomes similar to others in the market, losing its unique selling points and becoming a commodity. In the video, the speaker warns against the dangers of commoditization, explaining that when businesses offer similar services and use the same advertising channels, they lose pricing power and margins, becoming indistinguishable from competitors.

💡Pricing power

Pricing power is the ability of a company to set the price of its products or services without losing customers to competitors. The script explains that when businesses become commodities, they lose this power, which results in reduced profit margins as they can no longer command premium prices for their offerings.

💡Traffic source

A traffic source is any channel or method used to drive potential customers to a business. In the video, the speaker describes the traditional business growth model, where identifying a traffic source is crucial for getting a product or service in front of potential customers, also known as 'eyeballs.'

💡Sales funnel

A sales funnel is a marketing term that describes the process of guiding potential customers through various stages of consideration, with the ultimate goal of converting them into buyers. The script discusses the importance of having an effective sales funnel to turn traffic into sales, which can include steps like generating sales calls or direct purchases.

💡Lead generation

Lead generation is the process of identifying and cultivating potential customer interest in a product or service. In the video, the speaker talks about the importance of generating leads through the sales funnel and how the cost and efficiency of this process can greatly impact a business's success.

💡Lifetime value (LTV)

Lifetime value (LTV) is a prediction of the net profit attributed to the entire future relationship with a customer. The script mentions the concept of LTV in the context of the potential long-term profitability of clients acquired through the speaker's business model, emphasizing the importance of building lasting relationships with clients for sustainable revenue.

💡Education business

In the video, the term 'education business' refers to the strategy of providing valuable content or learning opportunities to attract potential clients and build trust. The speaker prefers using free education as a way to create goodwill in the marketplace before monetizing relationships with clients.

💡Goodwill

Goodwill, in a business context, refers to the intangible assets of a company, such as its reputation and customer relationships, which contribute to its economic value. The speaker emphasizes the importance of creating goodwill by investing in clients and providing value before attempting to monetize the relationship.

Highlights

Ser gatari introduces his role in running a growth firm called Clown Acquisition, which specializes in infrastructure implementation to elevate business constraints and increase throughput.

The importance of addressing bottlenecks in a company to enable scaling and handle more volume through systems and processes.

Ser's personal journey from an agency owner to a model where clients pay significantly more for infrastructure implementation in their businesses.

The traditional method of growing a business through a service or product, a traffic channel, and a funnel to convert traffic into customers.

The issue of commoditization in business, leading to loss of pricing power and margins due to competition and market saturation.

The inefficiency of advertising on platforms when everyone uses the same channels, leading to increased costs and sophistication of the market.

The ineffectiveness of traditional sales funnels as the market becomes more sophisticated and resistant to repetitive offers.

Ser's approach to building an education business as the top of the funnel to create trust and goodwill in the marketplace.

The preference for free educational content to lower barriers to entry and create goodwill with a larger audience.

The efficiency of the education-based funnel in terms of lead generation, conversion rates, and customer lifetime value.

The scalability of the education business model compared to traditional sales funnels and the reduced need for managing a large team.

The strategy of productizing and standardizing service delivery to ensure scalability and efficiency in business operations.

The preference for a setup fee and one-time payment for services to secure larger profits upfront and avoid the churn associated with monthly retainers.

The value of selling tangible assets like systems and processes rather than intangible advice in the service layer.

The concept of partnering with successful clients who have implemented the infrastructure, offering them more services in exchange for a share of the business growth.

The benefits of partnerships in terms of leveraged income, working with smart business owners, and the potential for long-term wealth generation.

The importance of not relying solely on one business model but instead mastering and combining different layers for sustainable growth.

Ser's emphasis on the need for business owners to understand and operate at scale, beyond just sales and marketing tactics.

Transcripts

all right uh I have an interesting

training for you guys today uh my name

is Ser gatari I run clown acquisition.

which is essentially a growth firm where

we come into companies look at where

they're at and where they need to be and

we Implement an infrastructure uh which

essentially elevates the constraints

into their business and allows more

throughput the reason why a company

won't scale is because um they have

different bottlenecks in their company

and what we essentially do using systems

processes uh things that we research

search you know Trends insights that we

find in different Industries we come

into and Implement into companies so we

can allow them to handle more volume um

actually did a whole breakdown on how we

do this and how I essentially went from

uh working in the basement as an agency

owner doing appointment setting

commoditized only getting people to pay

me 1.3k per month uh 1.3k 1.2k to

essentially moving into a model that

allows people to pay me$ 15 $20,000

for me to come into their business and

Implement um these new infrastructures

and we also have a lot of clients doing

the same thing in 50 over 50 niches

right now um the same model that allowed

me to collect a million dollars in 90

days um in my second year of running

clown acquisition. okay um now the point

of me making this training today is not

actually about building release or you

know the model or even show you guys

what we do on the back end it is not

that if you want that click the link

below and you're going to get to see the

full breakdown that I did but today I

want to talk to you guys about something

that I've been noticing okay um for

those who are online and who are

familiar of you know the traditional way

of growing a business all you need to do

all you needed to do before to actually

be successful was figure out a service

or a product okay that you want to sell

okay figure out a traffic channel

traffic source for you to put this offer

this service in front of people so get

eyeballs right and then you needed

something like a funnel to turn that

traffic that attention into something

that is desired it could be if you're

running Ecom then it could be uh

purchases uh of products right if you're

running a service business High ticket

offer uh coaching Consulting uh agency

service then you would probably need a a

call um to happen right so this is like

a a generate sales calls

right and then from here you would end

up with

clients here you would end up with

customers right this is if you want put

simply this is what it takes to grow a

business normally right now what happens

when everybody has the same service as

you okay there's no no uniqueness to

your value what happens when everybody's

advertising on the same acquisition

channels right I'm going to tell you

what happens what happens when

everybody's pushing the same thing as

you then you become a commodity when you

become a commodity you lose uh pricing

power when you lose pricing power you

lose what margins this is so funny

because I don't have a an MBA or never

went to business school but I spent so

much time um you know dealing with

business that this is literally like

anyway I'm about to give you guys like

years of learnings in like 10 minutes

okay so keep pay paying attention when

everybody starts doing the same thing as

you there's no more margins there's no

more like getrich quick opportunity

there right but when also when

everybody's using the same acquisition

channels as you well guess what it

become more expensive to

advertise right and even worse the

platform becomes inefficient the

inefficiency comes from the market

becoming more

sophisticated

okay and look at what happens all of

this added together guess

what less

margins

so this here commoditization leads to

less margins competition on Advertising

platforms becomes what leads to less

margins okay same thing here if

everybody's used to using those those oh

this checkout page is done in five

minutes or you have one day left to

purchase or on your call funnel you're

like hey uh come in or book a call or

you don't pay right once every single

lead has seen those same funnels over

and over and over G kaix is doing it

Cole Gordon is doing it every single

person copycats of all these guys are

doing it so now now what happens is I

personally have hundreds and hundreds of

businesses in my community and whenever

we're on calls I'd like to ask them like

hey guys who has booked uh or bought an

offer from someone saying I'll do this

or you don't pay recently and most of

them are like I've never actually like

it actually turns me off right so the

problem here is even your funnel becomes

inefficient for the same

reasons as as the previous one which is

Market becomes more more sophisticated

right once people have seen the same

offer offer offer offer or like layout

or funnel it it doesn't work the same

right which is why it has led an entire

Market of marketers to start saying hey

please do what I want you to do because

there's no risk you won't pay if it

doesn't work like that is a reaction to

the market level of sophistication if

you went into banking or I mean actually

banking works the same way like there's

so many banks and they're literally

trying to compete with each other that

they're like hey we're going to there's

there are no fees you can store your

money with us and things like that

that's essentially what's happening with

the online space it's like we're almost

like evolving into markets that are so

competitive that people the only way to

get clients is if you work for free okay

but it doesn't work because you're

selling your time you're not a software

it's not like you have zero marginal

cost of replicating your value right

your cost is your life okay anyway

that's a tangent let's keep going so all

of this leads to

what these businesses not being um

sustainable

durable and everyone who runs this type

of um do this type of funnels this type

of businesses goes out of

business uh after two to three years I

would say two to three years Max um most

most people in these niches disappears I

have people who in 2020 when I quit my

905 to start a business to start an

agency who were gurus back then who are

nowhere near nowhere to be found same

thing in 2021 I had people who when I

started an appointment setting agency

tried to copy me nowhere to be found I

have people in 2022 who were around they

were gurus today nowhere to be found

right but then there's something I've

been seeing there is a group of people

who are still around regardless of what

what's going on with Rising ad costs

with Rising uh you know decreasing

conversion rates on booked calls people

buying you have people who have made

like Millions multiple eight figures in

The Last 5 Years who are almost

incapable of even getting 100 likes on

their Instagram profile because no one

wants to even follow them I mean they

have I saw the other day someone with

600,000 followers with like 200 likes on

their Instagram I was like how do you go

from being a a thought leader someone

that people look up to to only having

out of 600,000 followers only 200 people

who still like you like to me it's one

of the CRA even let's just say that it's

not even the the audience fault even the

algorithm don't want to serve your

content to more of your followers

because they know that all you're trying

to do is pitch get traffic put them in a

funnel and try to monetize them right

away if this is the type if you think

that business is this easy and a lot of

people are certain businesses trying to

help creators do this funnel I'm like

guys there is no durability everybody

goes out of business with this model so

I want to show you guys what we've

started doing um from looking at how

inefficient this funnel gets over time

and this is how I'm running all not just

clown acquisition. but this is how I'm

running every single partner's business

if you ever become a partner with this

this is how we're going to run the

business we're not going to just want

use one funnel to grow okay what we want

is durability and sustainability and the

only way to do that is to leave more

Goodwill in the marketplace and create

more Goodwill than we're taking out then

we're squeezing out of the marketplace

let me show you how we do it so I

personally want to run top of

funnel and education

business okay like I'm doing right now

with this video right and then I'm going

to first show you guys the components of

the the main

uh components of this this business and

then I'm going to essentially break each

uh uh each one down okay then after that

I want to essentially have um I want to

have a

service second variable and then I want

to have um partnership or uh partnership

or a layer of ownership right this is

the three if you understand these three

layers you're going to be fine okay here

is how it's going to work

the education business purpose let's

first start with purpose the purpose of

it is to um trust we're in the trust

economy guys people are not but I have

people right now who would spend who've

spent a lot of money with me not

necessarily because I'm the best or not

necessarily because I I have the nicest

watch or not necessarily because I live

in a penthouse not necessarily because

they just generally like me because I've

poured in them I've invested in them

more than I've tried to take from

them when they entered our ecosystem

it's like I've I've invested so much

time I've given them so much in so many

insights that they would ra they they

would be willing to spend hundreds of

thousands of dollars working with us and

you know prefer having me be the partner

in growing their business

okay how do we do it really simple we

prefer YouTube okay and we like to

create some form of a

community okay

so education business and by the way

we're preferably it is the monetization

model is free I see some of you guys

trying to charge for content and

information I'm like you don't get it

it's supposed to be free or if you

charge then you're already trying to

monetize that Goodwill you haven't

created Goodwill if people are paying

for it I don't care how valuable your

knowledge is even the thing I'm about to

talk about I don't care how valuable

what I'm about to talk about is if I

charge you $10 for it then you you're

you you you put your guards up and

you're like if he doesn't meet to $10

worth of value or exceed it I'm never

going to click on any of his videos

again I'm never going to even respond to

his email I'm actually going to

unsubscribe for every for from

everything okay so a lot of you guys are

making the mistake to try to monetize on

information in these School communities

I'm like you're so you're so dumb you're

so dumb information is one of the

easiest thing to copy so

you should make it as low barrier entry

as possible preferably making it free

okay we like to do this so you can look

at it like this you're going to get ads

to bring in

leads or your organic

content to bring uh or or your organic

content okay this is going to feed your

top of

funnel right and then from your top of

funnel push them to your education don't

try to monetize them right away okay

don't try to monetize trust me don't try

to monetize them please do not okay

then out of out of this funnel okay I'm

going to make minimize this out of this

funnel here what is going to happen is

that out of these let's say you're

putting maybe a thousand people uh per

month are going through this education

layer of your business okay it's on free

YouTube whatever then you're going to be

creating a lot of Goodwill with a

thousand people maybe a hundred of them

and then maybe 50 leads a

month 50 prospects per month who've

consumed your content are going to have

consumed everything where they know what

you provide the value you provide and

how you can help them enough that you

can now generate what sales calls but

guess what the cost of the sales call is

going to be

infinitely lower than if you try to take

them from the ad straight to booking a

call okay but here's also what's going

to be good all the other metrics are

going to be amazing think about show

rate show up

rate uh cost I mean I'm going to just

the cost per booked

call even cost per lead um for showing

interest is going to be cheap it might

even be free um cash close rate is going

to be amazing okay and also cash per

closed average cash

collected average cash per closed

deal so this I mean the average money

you collect per closed client if they

came from this uh from this funnel which

is education Le first education Le

funnel the average spend I actually did

track this in our in our in our company

I looked at the average cash collected

per closed deal from someone who's who's

consumed our content versus someone

who's uh just came from a paid ad lead

and then booked a call and then

purchased it is like one to five this

guy will spend one of what this person

will spend so that means that if you

just optimize for here you're getting

five times the efficiency but here is

what most people don't understand is

that the efficiency is not just on the

cash collected it is on the showup rate

it is on the lead to booked call rate so

the conversion from lead to booked call

is five times higher the show upate is

like two to three times higher the

average close close percentage goes from

like 10 15% to like 30 to 40% right so

you're getting efficiency at every step

of the funnel most people don't

understand this and I understand they

don't understand this because they don't

understand

anything anyway let's keep going okay

now here's what's going to

happen

LTV beautiful these people the lifetime

value of these 50 prospects you could

literally make billions of dollars with

just these 50 clients that's how amazing

if you just investing the relationship

before you try to monetize it okay okay

now check this out what a lot of people

also don't understand is that this is

infinitely

scalable contrary to what to a typical

sales funnel which is I'm going to get

traffic I'm going to get funnels and

then I'm going to get sales calls and

I'm going to on board because here's

what you're going to need to build if

you actually um need to scale this every

single time you need new new creatives

you need new creatives at all times so

you need to become really good at

creating ads here at the funnel to keep

the funnel profitable you need the

following optimize the

funnel you're going to need to hire

Setters as the more leads come into the

business as the more more people op in

you're also going to need to hire

closers more closers but

also when you hire more people in your

business guess what you also need to

hire managers right how hard do you

think it is to scale a funnel while

you're also hiring scaling this the team

if you guys have not yet um most people

watching this haven't necessarily

managed the team as it grows guys do not

run a big if if I can wish you guys

something please get into software do

not run a big company where you're

involved in managing a lot of people

just get into Tech figure out a way to

work in AI because this part of hiring a

bunch of Setters hiring closers and then

hiring managers that lead this and then

hiring uh decision makers to make

decisions on the sales process on the

marketing and everything like that it is

going to become chaos you're going to

become chaotic that's why most people go

high and then they end up crushing down

because this part of managing team is

the hardest part of running a business

business so what most people don't

understand is that they're they're

scaling just this funnel this typical

funnel but they don't understand how

complex it gets at scale the complexity

you even if it's just a vsl funnel trust

me once that conversion rate drops once

the conversion rate drops at every

single uh um you know connection point

you are in trouble because you're going

to need to hire people to manage those

those conversion rates and then once you

have more people involved you are in

trouble okay so for me the way I like to

use it is I like to use um mechanisms to

essentially nurture and sell

people in a leverage way using code and

media media I mean

content okay because it's infinitely

scalable I can sit down here just chill

drink my IC

tea and create 10 videos a day and let

it go into the universe and let it find

the right people I can use a little bit

of the money I made yesterday I think we

made maybe like 20K 25k yesterday I can

take the little 5K say hey hey Google

hey YouTube Hey meta here's a good U

content please let it find the right

people and then I get those people to

consume it it doesn't cost me to hire I

could even run the ads myself I could

just put up a little note ad and let it

run it's one of the most efficient

acquisition front end to run but if you

just try to go ads to a funnel and then

to Setters and closers and everything

and just keep scaning

that good luck managing that it's it's

rare for people to actually successfully

run it that's why there's only like five

people in the game who are actually

making millions of dollars a month okay

it's super hard so for me what I'd like

to do is I like to run this as our our

top of

funnel because it scales infinitely

right and just so you guys I show just

so I can share with you guys the

efficiency of this of this of this model

we collect a million

dollars last year we averaging last two

years we were averaging a million

dollars every 90 days in cash collected

with one

closer one closer was collecting a

million dollars himself every 90 days

because we do a lot of leveraged

marketing and selling on the front end

with education and the education is so

valuable that people by the time they

speak with a closer they just want to

send him uh they wouldn't send them

$155,000 and uh he's essentially he just

collects like um he's like a an admin he

just reports back the invoice sends the

invoice makees sure that we have data on

the business that we're about to start

scaling and working with right and then

so I'm going to show I'm going to

explain everything so service um the way

that we deliver here on the service we

like to do something that we can build

and release so we like to build systems

processes and uh maybe a database pool

talent pool where we can essentially

take and build it once and Implement

into companies multiple times the reason

why you want to do this is because um

you know we scaled this layer to you

know on average we do 300K to 500k cash

collected okay um every single month on

this front here and to get this and this

by the way is new Revenue every month

this is not recurring Revenue this is

like 300K of new clent clients every

single month okay it's not like oh the

last clients paid for this Talent or

this system or they paying monthly no no

no I'm not talking about that this is

3003 million plus a year in new clients

um that we're adding okay now in order

to sustain this level of scale because

it's a lot of business to it's a lot of

money right in my opinion uh you need

something that is scalable so the

Fulfillment needs to be um productized

and standardized okay so that's how we

fulfill here

and then uh the last part here is

monetization we like to do a setup

fee um for now we like to get all the

money up front uh we like to commit we

don't like um we don't like to settle

for a lot of people are like oh but I

want percentage I want to be a growth

partner oh but I like the retainer from

the the agency model where people pay

you 1,500 bucks a month and they keep

paying everybody thinks that churn

doesn't exist when they think of a

pricing and monetization models right

they just like oh I'd rather someone

keep paying me every month than just get

a one off fee well that's if you can

retain those people right you do you

think we we're we're in la la land where

just because the invoice the agreement

says you should pay me month after month

that people are going to keep paying you

month after month I ran an appointment

setting agency I was churning people

after 60 days and they were only paying

me like 1,300 bucks a month so if I

could spend 500,000 bucks on acquiring

them I would only make money the second

month but guess what that second month

they would leave so I would have to go

replace them and like so it's it's like

everybody's dreaming about this retainer

thinking that you anyway I'm just that's

a tangent right um so we like to do

setup fee one time okay uh this is a lot

a lot more profitable and we actually

end up essentially securing like a six

if they were retainer clients they would

let's say this would be worth six months

uh of retainers we like to commit it we

like to get them to commit to it day one

okay and then um let me see if there's

anything um good and then also what's

beautiful here is that the sales

argument is really

easy we're selling something

tangible tangible assets we don't like

to sell information or advice because in

the current state that the market is

there is a lot of competition

so the more you can start selling

something tangible something that is

undeniably valuable so as an example I'm

going to show you guys um some of the

things we do you know like from all the

partners we've scaled we like to

essentially map out every single thing

that we're essentially building for lead

flow for appointments and we essentially

Implement all these infrastructure into

their businesses and these are playbooks

scripts data collection systems um crms

implementation the way to sell the

scripts uh onboarding systems

fulfillment systems like this is stuff

that you can't just fake like if I can

teach you on it but it's different from

Consulting you or coaching you on it

then it is for me to actually hand it to

you and implement it into your business

so I don't like to sell advice because

advice doesn't it's doesn't if it advice

if advice is not implemented and taken

action upon the advice then people don't

get results if people don't get results

even if you said this is just coaching

this is just Consulting they're going to

end up calling you a scammer because in

their mind the client is the customer is

always right so even if you sell them

advice and they don't get results guess

who's to blame you so for me with our

incubator or we we still consult

businesses but we like to say hey you're

buying an infrastructure you're buying

an asset should be systems processes and

uh we also help our clients actually

build recruit and find teams in their

businesses so we're actually doing work

it's not it's not just some woo woo

stuff like it's not like a loom that

you're seeing right now nonetheless

information is still valuable AF okay so

I'm not saying that information is not

valuable I'm just saying that monetizing

it and just selling information like in

a school community and you have Looms in

school is probably not if you're in a

competitive market people are going to

are not going to keep with you

long term okay so so this is really good

this is essentially it we are selling

something tangible we're selling it for

a lot of money up front we're building

and releasing it uh infinite amount of

times it's almost infinitely scalable

but it is not infinitely scalable right

and uh um the sales argument is good

okay now check this out out of the best

clients here who got our service out of

the smartest most successful businesses

that come out of the service layer who

implement the infrastructure we actually

like to offer them an opportunity to do

what to partner with them and in

exchange of partnership give them more

services so this actually is where you

give done for you value where you

actually do fractional marketing you do

fractional sales you run a sales team I

have one of my old closer who's doing uh

fractional sales and his uh a business

is paying him $40,000 per month right he

recruited the sales team uh managed them

and uh he's just getting paid uh a

percentage of profits which ends up

being $40,000 a month which is beautiful

right and so we found the best clients

but guess what most people who do growth

Partnerships will run a paid out

campaign like here and then uh get calls

and then get a client and then they'll

throw them right into the partnership

portion but but they're like you haven't

even vetted you don't even know if this

person is good you don't even know if

their offer is validated you don't even

know this person is consistent you don't

know if they do drugs at the end of the

day you don't know if they go to church

you don't know if they they're

trustworthy you don't even know if

they're going to pay you you don't know

nothing you you have no relationship

whatsoever with this human and you think

that you're going to take them from an

ad to a sales call to paying you uh a

percentage of their business that's one

of the craziest thing if you guys know

anything about private Equity it

normally takes 6 to 12 months even

years for people to get into your

business and become a partner and even

acquire your business you you need to do

due diligence it's not just oh I just

acquired a partner a client they have a

nice business they're a Creator uh I'm

just going to build them a school

Community I'm just going to run their

ads I'm going to build their funnels and

then I'm going to get 25% 50% of their

entire business

right the only Niche or model that I've

seen that work is in in the on fans

management U Niche because models are

just posting naked pictures and naked

videos or whatever nude whatever so

they're not marketers so you have so

much control and you're it's literally

technically your business you're just

you're essentially only fans you're the

platform you're just the service model

of the platform right that's the only

way can get a model and get them to to

buy but even then they're going to get

rid of you if they start making a lot of

money every month and just go find

someone better looking someone with more

watches someone who has a Rolls-Royce

things like that right so a lot of

people don't understand that like to

have Partners you need to only partner

with people that you would go you would

be willing to go to war with and that

would also be willing to go to war with

you because scaling a business is hard

and to think that just because someone

is willing to work with you on a

partnership deal means that you should

be working with them is is to be honest

in my opinion is being an is being

ignorant and a lot of ignorant people

are online telling that this is like the

right thing to do okay anyway keep going

so in exchange of the so we so

essentially use the service layer build

and release to build our pool of clients

for the partnership idea or the

partnership division of the business

right in exchange of service we like to

get a service

fee a monthly fee so this would be like

the the the monetize this is how we

essentially monetize and charge and then

we also like a percentage the percentage

is dependent on the business and what we

do if we're doing fractional sales and

we essentially are using our sales team

to close their deals you could take you

know 25% of every cash that is collected

which means you take I don't know 10%

and then you take 15% 10% goes to a

closer 5% goes to the Setters and you

take 10% of profit with the monthly fee

right this is good with let's say 10

businesses that's all doing a quarter of

a million per month to a million dollars

a month let's say average makes half a

m five 25% of 500k is around um wait one

second let me do the math uh if half 25k

it's like 75k a month right I believe

let's do the math

$500,000 time

0.25 whoa oh wow that's actually a lot

of money

holy yeah so you would take

125k okay and then you would take uh 10%

would go to you right and then the other

so take 10% would be almost 50% so like

50k would go to you and then the 75k you

would pay closers 50k then you would pay

25k to the Setters right on top of the

service fee right if the math adds up if

you guys want to rewind then go back to

it right so if you have like 10 of those

businesses that's 1.2 5 million $1

million and $250,000 that goes to your

agency cuz technically the partnership

model works like an agency you're

exchanging your talent in exchange of uh

of growth right we want when you're the

reason why Partnerships are really good

is because the this is the

most this is the most leveraged way of

pricing okay because you're you're not

getting paid for your time you're

getting paid you're almost like getting

paid on equity on productivity of the

machine of the business right here it's

somewhat leveraged and then here it's

the most well it's it's free right or

you can pay subscription but here you

want to whenever your last tier of

service never give your time unless you

own a percentage of the business uh as

you grow it because ownership is the

most any billionaires out there even if

you look at hormozi the reason why he's

moving to private equity and acquiring

these businesses instead of doing gym

launch like he was doing charging these

oneoff fees is because owning the

business you're scaling is is means you

still get paid but it's just that you

get paid forever okay now uh the

beautiful thing here is that um you also

get to acquire um yeah it's just this is

just you get rich

forever the value really on Partnerships

is that you get rich forever because you

have you're the most

leveraged you have you're working with

some some of the smartest of your you're

literally working with the best clients

on your that were that came out of your

service layer right so you're not

necessarily just getting paid a lot of

money uh a percentage of the growth if

you want you can acquire these

businesses if you have a lot of cash on

hand or you could just get a percentage

of growth uh the next thing is that um

so it's not it's just not the pricing

the pricing isn't just the only thing

that's leverag it's also the people

you're working with are also bright so

you multiply theice pricing model that

is leveraged and you're also leveraging

the fact that the business owners that

you're working with are pretty are

literal

Geniuses it's it's the dream world of

any growth consultant any uh CEO to work

with smart people and get paid really

well so um this is how we're running

clown acquisition. IAS I'm going to be

honest with you um we run education

front end so we are an education company

but we're primarily using education to

uh to attract future clients future

Founders uh and we also that helps us

liquidate acquisition cost uh I was St I

was looking at a business because for

those who don't know we just essentially

built a um a sales enablement uh agency

in the last four weeks um and as I was

doing research I studied I I was talking

with um the closer my old closer and he

told me about a company doing like a

million dollars a month 1.5 million a

month uh with uh a team and they're

spending like 250k to 300K uh a month on

ads uh they have a sales team of like 30

closers um and they're so yeah so they

we are spending like 25k a month on ads

still doing like 400k 500k a month uh we

only have one closer right and like a

team of four Setters or three setters uh

so we're making half the money they're

making but they're having to hire 30

closers spend 10 times as much on

marketing every month to make just two

to three times as much as us so that

efficiency in the business comes because

we're good at engineering the client

journey and we're not just lazy we're

not just lazy uh marketers who just rely

on oh my vsl funel is getting me a lot

of booked calls oh this new AI this new

Ai No AI it's this is not AI this

video you guys are watching is not AI

this is me spent a lot of time listening

to a lot of business breakdowns

understanding what makes a business

sustainable and how do you layer in

durability and mechanisms in your model

and how do you structure your business

so it's durable it is not just a anyway

I'm sorry I'm I get to get really take

this really personal because I've

learned a lot I've learned this the hard

way of being smart on how you grow the

business and not just focus on oh I just

need more sales call oh I just need to

spend more money on ads for more leads

or I need to get better at sales no once

you figured out that process you need to

get really good at understanding

business at scale not just being a um

like a school group Community designer

or like an appointment setter or like a

salesperson it's good those skills are

important when you're starting out but

it's time for everyone who at least if

you watch my bu my content on YouTube

I'd love if you guys can become real

like business people and people who are

operators not

just not just like little tactics here

and there that you got from this guy and

this person lying to you that this is

the best business model because if you

guys can see here even though I push the

build and release model I'm I'm doing

everything I'm doing information so I'm

technically an info product an

entrepreneur but I'm also an a build and

releaser okay which is kind of like an

agency Consulting but I'm also someone

who also does growth partnership right

so the old lie of saying that you only

need to do info to make a lot of money

or you only need to do agency to make a

lot of money or you need to become a um

like a growth partner is the way to go

it's stupid it is not it's not one thing

you're not just going to like apple

doesn't just sell phones they also have

a software part of the they also have

the the the the the Apple ecosystem do

you know how much money they make from

their apple

ecosystem if they only settled to create

the devices the tangible computers like

this one I'm using who knows what if the

materials went up and then they couldn't

sustain marketing it and selling it if

let's say they weren't as great of

designers and actually built goodlooking

great products and they were average at

Building Products I promise you that no

one would be buying Mark uh these these

Apple products is because the even the

ecosystem the the the the Apple

softwares look great and then they also

get meta they get YouTube they get all

these they get Safari they get all of

these platforms

to to build on their platform and they

get paid forever so you as a as someone

who's who's smart and who wants to be

free and who wants to change your life I

would love if you can start

understanding that you need to be a

master at everything and you need to

stack together in the right sequence

these different layers in your business

so you don't just rely on one or two

three Partners who make you most of your

income every month or you're an agency

that has scaled to 30 clients clients

and uh you have 30 employees that you

don't even know what they're doing and

then people churn and then you're not

making any more profit you're stressed

out you're like you're you're literally

lost okay or become be lied and say oh

the best business to start is an

information product because it's

infinitely scalable you can just put it

on school and just buy and it's just

charge for a subscription guys try to

ask the person who's telling you to

become an info person in a school group

and charge monthly and ask them for

their turn rate I can promise you that

every 30 days they almost have to

replace the whole entire Community

because information does not information

information gets experienced once but

it's not valuable anymore so if you do

not learn to create value recurring

value right the reason why software

someone pays for it every month is

because at any second my CRM is giving

me value at any second my iCloud is

giving me value at any second um

at any second Lucid chart is giving me

value right the software that I'm using

to make these process Maps so for you if

you think that your information that you

put on that you created on looms and you

put in your school group is going to

retain people in your community you

might as well be um like you might as

might as well just go to um to a to a

facility where they help people who have

mental ill not Mental Illness but who

are like slow where their IQ needs to be

helped right IND those special Aid um um

you know school school group right

because you're in la la land you live in

your dream world where you think that

your Guru told you the the thing because

it's the right thing for you I

personally like to embrace everything I

like to become smart on all different

layers not just take what this guy or

this girl is saying uh as true hopefully

this was good for you guys but um if you

do not have these

layers you're not going to survive in

business I love you all hope this video

was helpful bye-bye