How I got 700 people to pay me $40,000 each...no bs..

Summary

In this insightful video script, the speaker, after recounting his business journey and a conversation with his father, introduces the 'Value Equation' as a key to understanding consumer behavior. He breaks down value into four components: the dream outcome, perceived likelihood of achievement, time delay, and effort/sacrifice. The speaker illustrates how increasing the former two and decreasing the latter two can significantly enhance the perceived value of a product or service, drawing on relatable examples like personal training versus liposuction. The script concludes with a call to action for entrepreneurs to apply these principles to build successful businesses.

Takeaways

• 💪 The speaker emphasizes the importance of understanding the 'value equation' in business, which is crucial for entrepreneurs to comprehend what 'value' truly means and how to provide it to customers.
• 🏆 There are four components of value: Dream Outcome, Perceived Likelihood of Achievement, Time Delay, and Effort & Sacrifice. These components determine the perceived value of a product or service.
• 🎯 Dream Outcome is about the desirability of the result that the customer is seeking. The more appealing this outcome, the more valuable the product or service is perceived to be.
• 🤔 Perceived Likelihood of Achievement refers to how likely the customer believes they can achieve the desired outcome through the product or service offered.
• ⏱️ Time Delay is the period between the customer's payment and the realization of the desired outcome. Reducing this delay can significantly increase the perceived value.
• 🏋️ Effort & Sacrifice are about what the customer must do or give up to achieve the outcome. The less effort and sacrifice required, the higher the value of the offering.
• 📈 The speaker suggests focusing on increasing the Dream Outcome and Perceived Likelihood of Achievement while decreasing Time Delay and Effort & Sacrifice to maximize value.
• 🚀 The value equation is presented as a fraction, indicating that reducing the denominator (Time Delay and Effort & Sacrifice) to zero can lead to an infinitely valuable product.
• 🌐 The speaker illustrates the value equation with real-world examples, such as comparing personal training to liposuction, to demonstrate how the components of value play out in different scenarios.
• 📚 The concept of the 'value equation' is positioned as a significant contribution to the marketing world, aiming to clarify a complex and often misunderstood aspect of business.
• 💡 The script concludes with a call to action for entrepreneurs to apply the value equation to their own businesses to increase value and succeed without relying on expensive courses or services.
• 📖 The speaker promotes their newly released book, priced at 99 cents, as a resource to help entrepreneurs understand and apply the principles discussed in the script.

Q & A

What is the main topic discussed in the video script?

The main topic discussed in the video script is the concept of the 'value equation' and its four components, which are crucial for understanding how to create and sell valuable products or services.

What are the four components of the value equation as described in the script?

The four components of the value equation are: 1) Dream Outcome, 2) Perceived Likelihood of Achievement, 3) Time Delay, and 4) Effort and Sacrifice.

Why is the 'Dream Outcome' important in the value equation?

The 'Dream Outcome' is important because it defines the category of the product or service being sold and is the desired experience that the prospect imagines for themselves, which can greatly influence the perceived value.

Can you provide an example of how 'Perceived Likelihood of Achievement' affects the value of a product?

An example given in the script is liposuction versus an e-book on weight loss. The perceived likelihood of actually achieving the desired body shape is much higher with liposuction, making it more valuable despite the higher cost.

What is 'Time Delay' in the context of the value equation, and why is it significant?

'Time Delay' refers to the time between when a customer pays and when they receive the desired outcome. It is significant because reducing this delay can greatly increase the perceived value of a product or service, as people are willing to pay for speed.

How does 'Effort and Sacrifice' play a role in determining the value of a product or service?

'Effort and Sacrifice' refers to what a customer must do or give up to achieve the desired outcome. The less effort and sacrifice required, the more valuable the product or service is perceived to be.

What is the speaker's personal experience that led to the development of the value equation?

The speaker developed the value equation after a five-day business marathon, during which his father questioned the value provided to clients who paid a high price for a meeting. This conversation helped the speaker articulate the components of value.

Why did the speaker's father express concern about the high fees paid by clients?

The speaker's father was concerned because he thought the high fees might not be justified by the value provided to the clients, questioning whether the clients were aware of the cost and if they received something worth it.

What is the significance of the 'value equation' in the marketing world?

The 'value equation' is significant in the marketing world because it provides a framework for understanding and quantifying value, which is essential for creating products and services that customers perceive as valuable and are willing to pay for.

How can understanding the 'value equation' benefit entrepreneurs?

Understanding the 'value equation' can benefit entrepreneurs by helping them create products and services that are more appealing to customers, increase the perceived likelihood of achieving the desired outcome, and reduce the time, effort, and sacrifice required from the customer, ultimately leading to higher sales and customer satisfaction.

What is the speaker's advice for entrepreneurs looking to increase the value of their offerings?

The speaker advises entrepreneurs to focus on increasing the dream outcome, perceived likelihood of achievement, and decrease the time delay, effort, and sacrifice associated with their products or services to create offerings of higher value.

Outlines

00:00

🤝 The Value of High-Ticket Sales and Client Relationships

The speaker shares their experience in selling high-value packages to clients, contrasting the effort required in traditional sales with the ease of selling over the phone. They reflect on a conversation with their father about the high cost of their services and the value provided to clients. The speaker emphasizes the importance of understanding the 'value equation' in business, which consists of four components: dream outcome, perceived likelihood of achievement, time delay, and effort/sacrifice. They aim to educate viewers on these components to enhance their marketing strategies.

05:01

💡 Understanding the Components of Value in Marketing

This paragraph delves deeper into the value equation, starting with the 'dream outcome' as the first component. The speaker uses the example of weight loss products to illustrate how the perceived value can vary greatly between a low-cost ebook and a high-cost liposuction procedure. They explain that the value is determined not only by the dream outcome but also by how appealing and achievable it seems to the customer. The speaker also discusses the importance of reducing time delay, effort, and sacrifice to increase the perceived value of a product or service.

10:02

🚀 Decreasing Time Delay and Effort to Enhance Value

The speaker continues to break down the value equation, focusing on the third component—time delay. They argue that reducing the time it takes for a customer to achieve the desired outcome significantly increases the value of the product or service. Examples such as expedited DMV services and the instant gratification offered by digital products are given to highlight the power of speed in adding value. The speaker encourages business owners to consider how they can decrease time delays to improve the value proposition of their offerings.

15:04

🔄 Effort and Sacrifice: Minimizing the Downside of Value

In this paragraph, the speaker addresses the fourth component of the value equation, which involves effort and sacrifice. They differentiate between the actions a customer must take that they do not want to do (effort) and the things they must give up that they enjoy (sacrifice). The speaker provides examples related to weight loss and emphasizes how reducing these factors can greatly increase the value of a product or service. They encourage entrepreneurs to focus on decreasing the downside of their value equation to create a competitive advantage.

🏋️‍♂️ Comparing Personal Training and Liposuction: A Value Proposition Analysis

The speaker concludes the video script by comparing personal training and liposuction as methods to achieve the same dream outcome of looking and feeling good. They rate both options on the value equation, highlighting the high perceived likelihood, shorter time delay, and minimal effort and sacrifice associated with liposuction, which makes it a more valuable proposition despite its higher cost. The speaker uses this comparison to reinforce the importance of understanding and applying the value equation in business to create products and services that customers perceive as valuable and are willing to pay for.

Keywords

💡Value Equation

The 'Value Equation' is a concept introduced in the video that encapsulates the idea of what makes a product or service valuable to customers. It is defined by four components: dream outcome, perceived likelihood of achievement, time delay, and effort and sacrifice. The video's theme revolves around understanding these components to create and communicate value effectively. An example from the script is the comparison between selling a 1,000 package through arm wrestling versus selling 40,000 packages over the phone, highlighting the difference in perceived value.

💡Dream Outcome

The 'Dream Outcome' is the first component of the value equation and refers to the ultimate goal or result that a customer desires from a product or service. It is the vision of success that the customer has in mind. In the video, the speaker uses the example of weight loss products, where the dream outcome is the same—losing weight—but the perceived value can vary greatly depending on the product's ability to deliver on that dream.

💡Perceived Likelihood of Achievement

'Perceived Likelihood of Achievement' is the second component of the value equation, which addresses how likely a customer believes they are to achieve the dream outcome through the use of a product or service. It is about the customer's confidence in the product's effectiveness. The video script uses the example of choosing between an inexperienced doctor and one with 10,000 surgeries, where the latter is perceived as more likely to achieve the desired outcome, thus more valuable.

💡Time Delay

'Time Delay' is the third component of the value equation and refers to the duration between when a customer invests in a product or service and when they receive the desired outcome. It is about the speed of achieving results. The video illustrates this with the example of expedited DMV services that, despite being more expensive than free government services, are valued for their speed.

💡Effort and Sacrifice

'Effort and Sacrifice' is the fourth component of the value equation, encompassing the work a customer must put in and the things they must forgo to achieve the desired outcome. It is about minimizing the inconvenience for the customer. The video contrasts personal training, which requires significant effort and lifestyle changes, with liposuction, which requires minimal effort and sacrifice, to demonstrate the impact on perceived value.

💡Marketplace

In the context of the video, 'Marketplace' refers to the environment where businesses compete to offer products or services that are perceived as valuable by customers. The speaker discusses how understanding and applying the value equation can give businesses a competitive edge in the marketplace. An example is Amazon, which has made shopping faster and more convenient, increasing its value in the marketplace.

💡Entrepreneurs

'Entrepreneurs' are individuals who create and run their own businesses, often taking on financial risks in the pursuit of profit. The video is aimed at educating entrepreneurs about the value equation to help them succeed in their ventures. The speaker's goal is to equip entrepreneurs with the knowledge to build successful businesses without relying on expensive courses.

💡Customer Perception

'Customer Perception' is central to the value equation as it influences how customers evaluate the worth of a product or service. It is about the customer's subjective assessment of the dream outcome, likelihood of achievement, time delay, and effort and sacrifice. The video emphasizes the importance of aligning with customer perception to create value effectively.

💡Competitive Advantage

'Competitive Advantage' is a term used in the video to describe the unique qualities or strategies that allow a business to outperform its competitors. By focusing on decreasing the downside of the value equation—such as time delay and effort—businesses can create a competitive advantage, as illustrated by companies like Netflix and Uber.

💡Arm Wrestling

In the video, 'Arm Wrestling' is used metaphorically to describe the struggle of selling a product with a lower perceived value, such as needing to convince a client to buy a 1,000 package. It contrasts with the ease of selling a high-value product, like 40,000 packages over the phone in less than 15 minutes, demonstrating the impact of value on sales.

💡Breakthrough

'Breakthrough' in the video refers to a significant realization or development that leads to a major advancement or success. The speaker mentions a breakthrough in understanding the 'job to be done' for a certification business, which was to provide a community experience rather than just education, highlighting the importance of identifying the true dream outcome for customers.

Highlights

The speaker emphasizes the importance of understanding the value equation in business, particularly for entrepreneurs.

A personal anecdote is shared about a conversation with the speaker's father, highlighting the perceived value of the speaker's business services.

The concept of the 'value equation' is introduced as a significant contribution to the marketing world.

Four components of value are identified: Dream Outcome, Perceived Likelihood of Achievement, Time Delay, and Effort and Sacrifice.

The 'Dream Outcome' is explained as the initial component that defines the category of the product or service being sold.

The importance of increasing the appeal of the Dream Outcome to enhance perceived value is discussed.

Perceived Likelihood of Achievement is described as a critical factor in determining the value of a product or service.

The concept of Time Delay is introduced, explaining how reducing the time to achieve the desired outcome increases value.

Effort and Sacrifice are presented as the final components of the value equation, where reducing these factors can significantly increase value.

An example is given comparing the value of personal training to liposuction, illustrating the application of the value equation.

The speaker discusses the evolution of his understanding of value, shifting focus from only increasing the top side of the value equation to also decreasing the bottom side.

The impact of the value equation on competitive advantage is explored, with examples from major companies like Amazon, Netflix, and Uber.

The goal of decreasing time delay, effort, and sacrifice in business is linked to increasing the perceived likelihood of achieving the desired outcome.

A side-by-side comparison of personal training and liposuction is used to demonstrate the practical differences in value perception.

The speaker shares his book release information, emphasizing the value of equipping entrepreneurs with the knowledge to succeed.

The final message encourages entrepreneurs to understand and apply the value equation to avoid common pitfalls and achieve success.

Transcripts

you have to spend an hour arm wrestling

a client to sell a 1 000 package whereas

here people buy 40 000 packages over the

phone in less than 15 minutes

so when i was 28 years old i was five or

six years into business or my business

career

and i had just gone through a five-day

gauntlet so i had done a two-day client

event

which was we had six or seven hundred

clients uh that had come to our highest

level program in person and then the

next day i had my executive meeting then

two days after that i did a meeting uh

with all 135 of our employees who flew

out uh to austin to to to do a two-day

conference with us do some trainings all

that kind of stuff my dad calls me up

after this kind of five day marathon

and he says hey alexander because that's

what he calls me right

he says hey alexander but he sounded

really way more concerned and i was like

what's going on um and so i roll out of

bed put a hoodie on walking in the

hallway so i didn't want you know wake

layla

and he says

i thought you said this was just going

to be a meeting of your highest level

uh clients

and i was like it was he was like

didn't those people pay like 42 000 a

year the highest level people and i was

like yeah he's like but i thought but

you just said you had like 700 people

there and i was like yeah i know

and i was like what's the issue he was

like you had 700 people who paid that

much money

and i was like yeah what kind of came

next was

something that i think probably stung a

little bit at the time but i knew that

it wasn't coming from a place of

where i didn't think it was coming from

a place of of meanness

and he says

do they know that they're paying you

that much i was like

yeah they're aware it's not like i'm

magically siphoning money out of their

bank accounts

he's like

well i mean i hope i hope what you're

giving them is worth it that could have

really stung and it probably did um but

i think i was kind of in such an

emotionally exhausted state because if

you've done five days of just pure

events of it i was like i had no

adrenals to get angry with

and so i said well

let me walk you through it so i said if

i

made you 239 000

would you pay me forty two thousand

dollars

he's like well

how long would it take me and i was like

it would take

you know eleven months he was like okay

well do i know i'm gonna make that money

and i was like yeah you're pretty sure

you're gonna make the money it was like

okay

he's like what would i have to do

i was like you would you know wouldn't

have to do a ton you'd have to probably

do about 15 hours a week of work

he was like okay

um

and would i have to pay that all up

front or

like how would i have to pay you i was

like you would pay me as you made the

money

he was like huh

well then yeah i would do it

and i was like and that's why they do

too

and so when i walked my father through

that kind of mental explanation

partially part of it was to make sure

that my father you know felt like i was

legit but the other part of it his

questions actually uh denote

what the components of value are and so

the purpose of this video is to walk you

through the value equation which i think

you know might be one of the bigger

contributions that i'll have into the

the marketing world and there are four

components to value that's why i have my

little handy-dandy ipad here so we can

do this all visually alright so we'll

say value and we have the four

components of course of value to do when

i was creating this it was because i

wanted to figure out what this word

meant i think value is one of the

hardest things that we have as

entrepreneurs to understand we just say

it it's it's used loosely lifetime value

you know provide more value excessive

value blah blah blah right but we don't

know what it actually means and if you

ask someone what is value right how do

you just how do you describe value how

do you how do you measure or quantify

value i think this is my one of my

better things and so this is the value

equation as alex for mostly defines it

okay so there are four components to

this

the first component is what i consider

the dream outcome all right and when i

was thinking about this it all started

because i was really trying to figure

out why

some people would buy some things and

not other things

and at the at the very beginning of this

it was if i were selling to men in

general more men value making money then

losing weight right and so in general

the category of things that make people

money cost more for men

than the category of things of losing

weight and that's because the dream

outcome of making money at least for men

increases status more than losing weight

does and so as a result that is deemed

more valuable and so while i'll go

through each of these components i'm

going to give you two kind of examples

of one that exemplifies it and doesn't

exemplify it so that you can see it kind

of in the real world the first component

is is the thing that we are selling

valuable in terms of is the dream

outcome that we're going to deliver to

the prospect something that they would

like the reason this is probably the

first one is because it kind of defines

the category now within a category

the remaining three variables are the

things that will determine what is

expensive and what is not and to go back

to the the weight loss scenario if i

have uh a woman for example who wants to

lose weight and i sell there's probably

some things that help people lose weight

that are five dollars and some things

that help you lose weight that are fifty

thousand dollars so you've got a five

dollar ebook and you've got liposuction

all right so why is one five dollars and

150 000 when the dream outcome is the

same of losing weight that's where the

other three variables of value come into

play value number two and obviously the

goal here is to increase the dream

outcome the more the more appealing we

can make it seem the more viscerally we

can describe what the dream outcome is

going to be like when the when the

prospect experiences it then they're

going to deem it more valuable and then

by extension be willing to pay us more

for it the second component of value is

perceived likelihood of achievement and

believe it or not this was actually the

last of the four because i was still

trying to figure it out because i felt

like something was missing and so this

is the easiest example that i can give

you mentally for two things where one is

more valuable than the other based on

the perceived likelihood of achievement

and so for example if you were going to

get now we'll use liposuction as an

example if you're gonna get surgery

right from a from a from a doctor and

one doctor this is their first surgery

coming out of medical school and the

other doctor it's their 10 000th surgery

of this specific type of surgery which

guy would you be willing to pay more for

well obviously the 10 000 surgery guy

right i mean if anything you probably

have the the first time surgery guy

you'd want to do it for free or have him

pay you right and so

and what's funny about this just as an

added tangent is that the guy who it's

their first time would probably end up

taking longer so you're actually getting

less time with the guy who's done it 10

000 times than the guy who's done it

once or never right and so even though

you're actually getting less time you're

willing to pay more for it which is just

another interesting thing which is why

value is not uh time in terms of how

long it takes you to fulfill something

should never be

in the value equation for yourself all

right so first is dream outcome is the

thing that we're that we're going to

sell this the experience that they're

going to have would they imagine

themselves experiencing going to be

allowed to them second is how likely do

they perceive the achievement of that

dream outcome if i buy something right

like that ebook example if i'm buying an

e-book versus liposuction the likelihood

that i think that i'm actually going to

get the stomach that i want is probably

significantly lower with an e-book than

with liposuction right so the perceived

likelihood of achievement is lower and

by extension i will now get less value i

will perceive less value and be willing

to pay less for it and so for us as

business owners and promoters for our

businesses the goal is that in this

equation and the reasons a fraction is

that we want to increase both of these

things right we want to increase the

perceived likelihood of achievement and

when you increase the dream outcome this

is why a lot of marketers start

promising bigger and bigger things i

also believe that it's the most amateur

it's the most beginner but it's where

everyone starts alright this is where i

started my career where all i would do

is dream is is do bigger and bigger

dream outcomes i promise more and more

and the perceived likelihood of

achievement what i did is i put more and

more testimonials so the more

testimonials i had the higher the

certainty that the person or the

prospect would experience what i was

selling they believed me that if i had a

thousand testimonials versus one you

believe the person is better at the

thing right and if they're better at the

thing you're more certain which actually

decreases risk which becomes more

valuable third

so this is the bottom side of the

equation right so the top side of the

equation we're trying to increase the

bottom side of the equation we're trying

to decrease

all right so this is time delay

so the time delay is the time between

when i pay

and what i get what i want i have this

kind of in two separate pieces here well

i'll just i'll just talk about the main

one and then i'll talk about the about

the fourth one we'll hit it all right so

time delay and this is probably one of

if not the most powerful things like if

you want to enter into a marketplace you

can do whatever the best guy is doing

and do it in half the time and you will

become more valuable right people will

pay

for speed all right and if you ever

compete against somebody who's free or

giving away free stuff sometimes you

compete against government services i've

got a friend of mine who does dmv

expedited services in new mexico all

right and they have 14 locations of

basically

expedited dmv services so you can renew

your license and all that kind of stuff

and they cost 50 bucks instead of being

free from the government and they murder

it

murder it even though they're competing

at something that's free they beat them

on speed and so if you ever are

competing against uh free

compete with speed right fast speeds

free okay so time delay can i do the

thing faster can i get them there faster

now the longer it takes the less

valuable

my service or product is right the

shorter it takes the more valuable it is

so in theory if i were to click buy on a

digital product for a six pack and then

look at my abs and i have a six pack

that would be an infinitely valuable

product right and so if we can think

about our services as like how quickly

right can i make this happen in reality

a different example would be um if i

were selling marketing services right to

a physician and as soon as their card

ran their phone rang right on the front

desk with somebody saying hey i just

heard about your thing i'm qualified i'd

like to buy your services that would be

unbelievably valuable right immeasurably

valuable because of the speed right and

so you can in a very real way increase

the value of what you sell without

changing the thing but only delivering

the outcome faster that's the third

component of value so the idea here is

that we want to decrease the time delay

right we want to make it faster for the

prospect to experience the outcome that

we are promising

fourth component of value all right and

there's two components to this i'm going

to give you some nuances here it's

effort and sacrifice

so effort

is what someone must do

that they don't want to do in order to

achieve the outcome sacrifice

is what they have to give up or stop

doing that they do enjoy doing in order

to achieve the outcome so i'll give you

an example of both all right so it's

kind of like 4 4a and 4b right but i

think they're kind of i bulk them in the

same thing because i think they are

similar enough that they're worth uh

putting in the same bucket so effort for

example would be like if i wanted to

lose weight right

then uh if i'm you know cindy lou all of

a sudden i'm not doing certain things i

might not be weighing my food i might

not be counting my calories i might not

be eating you know shopping at the

healthy grocery store i might not be

working out in the morning i might not

be waking up right

early in order to get the gym i might

not have an extra hour or two

every day that i have to dedicate to

this i might not be sore right these are

all things that i now have to experience

that i don't want to experience that are

part of effort right these are things

that make this less valuable on the flip

side if i were to uh sacrifice i'm

sacrificing the foods i love i'm

sacrificing sleeping in i'm sacrificing

walking down the stairs without being in

pain and so i think effort and sacrifice

oftentimes are flip kind of

both sides of the coin right they're

either they're heads and tails of the

same concept which is why but i think if

you can think of that in terms of your

own services like what am i making

someone give up and what am i making

someone start doing that they weren't

doing before that they don't want to do

right and so again the goal here is how

can i decrease the effort and sacrifice

associated with achieving the outcome

when they buy from me the example would

be if i had the the abs thing right now

let's say it was instant but it was like

incredibly painful right well you

clicked the button then you get the abs

but it was just like it felt like fire

all over your body that would be a lot

of effort from sac i mean that's painful

right that's literally painful versus

nothing at all well in each of those

examples the one that isn't painful is

going to be more valuable right

and so as i think through product lines

service lines i always attack it from

this perspective all right is how can i

create more value by increasing the

dream outcome and my expression of it so

that they believe what i'm saying and

the way i have depicted what they want

to be actually what they want and you

would be surprised how many times people

get this wrong right i was talking to um

dr john berardi is the co-founder of

precision nutrition they sold for a a

nine figure plus exit he was talking

about one of the biggest breakthroughs

they had in their business when they

understood the job to be done all right

so they sold search certifications right

he said most people think that selling

certification is about selling continued

education he was like that's not the

dream outcome people are not actually

wanting to buy the certification the

dream outcome of the certification and

the experience around that is actually

being in a community and being meshed

with other people who are just like you

weird just like you and so as soon as

they realized that that was actually the

job to be done and people just wanted a

socially acceptable excuse to go do that

right certification is socially

acceptable excuse to do that then in

that instance now they had to find the

dream outcome properly as to what people

actually wanted right and so that was a

huge breakthrough in their business and

then business well up and all that kind

of stuff and so getting the dream

outcome right may seem simple but a lot

of times being able to depict it

accurately back to the prospect as they

desire it um is extremely valuable so

the goal is to increase the top side and

decrease the bottom side and one of the

things that and the reason this is a

fraction and not an addition and then

subtraction equation is that if you can

get these bottom things down to zero

right getting the bottom to zero you

have an infinitely valuable product so

no matter what your promise is on the

top even it's tiny a tiny inconvenience

you help people avoid if it's immediate

and it requires no effort on their part

you have an infinitely valuable product

and when i look at the biggest

businesses when i look at my own

businesses and how i've changed as an

entrepreneur over time i used to focus

only on the top side and now when i look

at the amazons i look at the netflix i

look at uber all of that stuff is stuff

that decreased the downside uber made it

immediate and you now you now if you've

seen on lyft you can be uh you can get

first in line right so it's like boom

you can hit it for an extra five dollars

you can get picked up an extra like in a

minute right it's crazy but they were

smart about it they realized they could

increase the value by decreasing the

time delay netflix made decreased all

the effort and sacrifice that went along

with watching television and seeing uh

and running movies and all that stuff it

was immediate for them right there's no

effort no sacrifice it's all right there

you don't have any picking it's just

boom they're like make suggestions etc

this theme amazon right you buy it and

then they've got drones delivering it to

you in two hours right they consistently

the biggest companies decrease the

downside of the equation which is where

more of the work happens but in my

opinion it's also where the biggest moat

lies from a competitive advantage

standpoint and so this as i look at my

companies this is what i'm focusing on

with our products and our services how

can we decrease the time delay how can

we how can we decrease the effort and

sacrifice that are associated with

achieving the outcome that we want and

then in so doing increase the perceived

likelihood of achievement of the pro of

the prospect so what i want to do is

give you one side-by-side example

of this concept so you've got personal

training and you've got uh lipo all

right so you've got both kind of

versions of the same dream outcome all

right so both stream outcomes are you're

gonna look good you're gonna feel good

all that kind of stuff right so i would

say this is a is a one out of one um if

we were to rate this on a binary scale

of does it achieve the dream outcome yes

personal training will help you look

good feel good etc liposuction help you

look good feel good etc all right now

look at let's look at the second second

thing here right perceive likelihood of

achievement if you're buying personal

training the perceived likelihood of

achievement probably kind of low right

because you're like am i really going to

do this am i really going to follow the

nutrition plan am i really going to wake

up you know am i going to do all this

stuff do i really think it's going to

happen for me probably put a zero most

people don't actually think they're

going to be successful when they buy the

thing now on the contrary liposuction do

you think that you're going to have less

fat on your stomach when you buy section

the answer is yes you do think that

you're going to have less so the

perceived likelihood that you're going

to do it very high which is a one let's

go to number three so time delay all

right so personal training am i going to

have it immediately no personal training

might take 12 months or 18 months or 24

months before i get to my ideal weight

and even then i still might not be my

body might not the way i want it to look

or my stomach might have extra skin all

that kind of stuff right so it's going

to take a long time for me to get to

where i want to get to right it's not

going to happen soon boom we've got

another another zero here now

liposuction if they just

suck all the stuff out of my stomach and

they cut the skin off right and it's

nice and tight right what's the like

what's the the time delay on that

i don't know maybe a month maybe two

months right before before it's it's all

ready and sucked in right so it's a

short and much shorter time time delay

for the dream outcome to occur and then

finally effort and sacrifice for

personal training all the things i gave

earlier right i gotta give i gotta i

gotta go i gotta change the way i shop i

gotta change the way i eat i gotta wake

up early i gotta be sore three days a

week right i might not be able to eat

with my kids like there's all these

other pains that go with i gotta learn

how to cook healthy all these things

right lipo i don't change anything

right the effort and sacrifices i i fall

asleep and instantly i'm woking back up

from my medical coma i am sore in my

stomach for sure you know for three or

four weeks but then after that it's done

right whereas here on this personal

training side right i'm going to be sort

of for

for years right now my goal here is not

to debate whether uh you know i think

people should do fitness or do

liposuction i'm obviously just do

whatever you want right but for the for

the for the context of us as business

owners to understand the difference in

value this is a one out of four and this

is a four out of four which is why you

have to spend an hour arm wrestling a

client to sell a 1 000 package whereas

here people buy 40 000 packages over the

phone in less than 15 minutes

and that is the difference of value and

that is why the value equation is how i

think that i this is how i see business

this has taken me a long time to figure

out and so i wanted to share it with you

guys so anyways lots of love keeping

amazing and if this was interesting for

you fyi my book just released um it's 99

cents you can get it i made it 99 cents

and the goal of all the things that i

have here is um you know we're trying to

build a portfolio of companies that does

a billion dollars in revenue we're

currently at about 85 million i know

there are a lot of broke people in the

world and uh my point here is to make

sure that you are not one of them and to

equip entrepreneurs with the stuff that

they need to succeed

without having to buy any courses on the

internet so uh keeping awesome lots of

love and see you in the next vid bye