This Formula Makes My Sales Grow On Autopilot (use with clients)
Summary
TLDRThe 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
📈 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.
🚀 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.
🛠️ 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.
Mindmap
Keywords
💡OnlyFans Management
💡Lead Flow
💡Booked Call Rate
💡Show Rate
💡Close Rate
💡Average Cash per Close
💡Cost of Acquisition (CAC)
💡Gross Margin
💡Contribution Margin
💡Sales Funnel
💡Promo Cycle
💡Roi Calculator
💡Constraints
💡Attention Generating Sales Assets (AGSA)
💡Superhero Founders
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
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