13 Years of No BS Business Advice in 79 Mins

> - **13 years of business experience shared in one video.**
> - **Invaluable lessons on pricing strategies and effective advertising.**
> - **Emphasis on customer relationships and the importance of feedback.**
> - **Tactics for dealing with stress and understanding business dynamics.**
> - **Strategies for increasing sales and addressing operational challenges.**
> 
> 

I've been in business 13 years. I've sold nine companies. My last company I sold for **$46.2 million**. My current portfolio at acis.com just over **$17 million a month**, and I'm going to compress 13 years of business advice into this one video.

Number one: Have something extremely expensive to sell that you never even plan on selling. I learned about this anchoring tactic from a friend of mine. He said, "Listen, man, you can just put something on your menu of items or services that you sell that's 10 or 100 times more expensive, and just by having it there, it'll anchor everything else on your menu or the rest of the prices that you have." 

Just make it something that, if someone actually bought it, you'd be stoked that they did. But what ends up happening is that you'll sell more people on your core offer because they have this big price anchor. Second, it allows you to nudge up your main offer's price because related to the big one, it looks like almost nothing.

I was talking to a different friend of mine and I said, "Hey, you should consider just adding one of these things in." He had a weight loss business, a very generic online weight loss business, and so he added a six times higher price version of his offer. Then the craziest thing happened: people started buying that more than his core offer! When he did that, he tripled his profit overnight.

The thing is that it also breaks you, especially if you're starting in business, out of this fear of raising prices by just saying "Hey, there's no way anyone's going to buy this. I'm going to make this so expensive, no one’s going to buy it," and that's okay. You give yourself permission to just fly it out there. What you will find is that **10% of customers just want to buy the most expensive thing**; these are the whales. 

The only thing worse than making a $1,000 offer to somebody with a $100 budget is making a $100 offer to someone with a $1,000 budget. Because in the first scenario, you lose 100 bucks, in the second scenario, you lose $900 of the money that you should have made but didn’t.

Number two: No one knows you exist. **Advertise more.** To give you context, when I walk through the streets, I usually get stopped four or five times on like a 60-minute walk. When I was launching my book last year, I had **500,000+ people who were registered**. It was this massive event that broke the internet, whatever. But during the month leading up to it, we were advertising on all channels; we were running ads; we’ve got affiliates that are pumping it; I'm making content all over the place. 

And over the four weeks of people that stopped me, only one person knew that I had a book coming out! Every time I’d see somebody, like "Hey, you going to be at the book launch?" They’re like, "Oh, you have a book?" And I was like, "How can you not know that I have a book?" 

There's a story from Henry Ford that I love. He was walking by, and his CMO of Ford was right next to his office. Every day, he’d walk by and see the marketing campaign. A day after day after day. 

So three months into seeing the same campaign, he knocked on a CMO’s door and he’s like, "Hey, when are we going to stop running this thing?" He’s like, "I'm getting exhausted from seeing it." And the guy just looked at him; he’s like, "We haven't started running it yet." The thing is, we get so sick of our advertising so much before our customers or potential customers even remember our names.

So the extent of advertising that you have to do... there are so many people in the world, people’s attention is so spread thin, and so distracted that in the off chance you actually do get an advertisement of some sort in front of them, the likelihood that they remember that it was even you and the core message of that advertising is even lower. 

So many of us have this big fear that we're harassing our audience by repeating ourselves over and over and over again. But the vast majority of the time, **A) no one even knows you exist, or B) specifically knows the message that you're trying to let them know.** So I like to tell my team and remind myself that we need to be reminded more than we need to be taught. Your audience needs to be reminded more than they need to be taught.

I don't know about you, but I followed plenty of accounts where they have the same four or five messages more or less that they put out there. The reason I follow them is because I like the reminder! 

I like to be reminded to be patient. I like to be reminded to not take things too seriously. I like to be reminded that I have to think long. Those are the things that I like to be reminded of. Imagine if that account said, "I already said be patient once; I don't want to say it again; they've already heard that from me!" It’s like no, people have messages that they want to continue to get fed into. 

Every time you feed that same message that they liked before back into them, they’ll have another positive experience with you. The amount of novelty that's required in content is significantly less than you think as a creator. Think about it like you’re going after a girl and she’s with somebody right now.

So you’re like, "Okay, well I’m going to ease off, but I’m just going to let them know I’m just going to throw these little flares out there that I’m interested. I'm here, I’m not being disrespectful, but I’m available," right? 

Then what happens is, as soon as she gets out of that relationship or whatever, then she’s receptive to your message. Same way works with customers. They might not be looking for a marketing solution, they may not be looking for a plumbing solution, they might not be looking for an IT services provider for 3 months, 6 months, or 9 months.

But they might like to hear your stuff! The moment they are in the market, you're the first one they think of because you continued to repeat the messages that resonated with them to begin with. 

The big thing is the **4x4**, all right? Especially when you're starting out: **four hours a day doing the core four.** 

The core four means you're reaching out to people you know one-on-one, reaching out to strangers one-on-one, making content one-to-many, or running ads one-to-many. Those are the four ways that only one person can do to let other people know about their stuff. I use the rule of 100 as my guide. 

Meaning you either make 100 minutes of content, you do 100 outreach (so either cold or warm), or—if you want to get really spicy—**at least $100 a day on advertising**. 

Now obviously the $100 a day you can scale as much as you want, but as a baseline for anybody who's starting a business, those are three ways that you can just say "Okay, what do I have to do to let more people know about my stuff?" 

If you're not making 100 minutes of content, you're not doing 100 outreaches a day, or you're not spending $100 a day on ads, **no one's going to know you exist**. And that is the biggest threat to your business.

The reason it’s so important as a founder to do this in the business is that you have to be able to make it rain. So every business, at the most basic level, has to advertise before it can have money, right? 

So like if you want to make money, people cannot give you money until they know you exist. So it is a prerequisite for making money in business that you advertise first and then you have a product that you can deliver on. That's the most basic form that you have to have. 

If you just have the product and no one finds out, you will continue to not make money. This leads me to number three: until you’re at $100,000 a month, **advertising is all of your focus**.

The main reason for that is if you don’t have enough people coming in, you’re not going to have enough iterations of the product to get feedback to know if your stuff is good or not and what you need to do to make it better. Up to $100,000 a month, at that point it’s all advertising. But at some point in order to continue to scale, you need to fix the product. 

You need to make sure that people are referring you. You need to make sure people are happy, that they’re staying month after month, or they’re repurchasing month after month after month. If you’re not solving that, you’ve got a leaky bucket, and that's going to be a problem that you’re going to deal with later. The smart move is to fix that stuff now so that you can grow a really big business.

This is one of the biggest mistakes that I made so many times in my early career. You start advertising, you start understanding how to sell and acquire customers, and you say, "Oh, that worked, I’ll do more of it." And you should do more of it, but within this current context of you have to make sure that you’re delivering.

So my recommendation is get to a million dollars; get to **$100,000 a month**, and then put all your focus on filling all the holes in the bucket. When you do that, you’re actually going to keep growing because if you keep the same activities and then you fix the holes, you're still going to keep growing steadily month after month after month, even with the same level of advertising effort.

Then once you fix the holes, you go back to the front end and say, "How do I 10x this?" And that is how you can stair-step even though your actual revenue growth will still look flat. Because when you fix the holes, you'll make more money, but the doing of the business will shift.

Now if you do the alternative of that, which is you just advertise more and more and more, there’s going to get to a point—it’s an **ASM** tooth—basically, you start growing and you start plateauing like this. Because then your infrastructure is too big, and there are too many moving pieces to fix the thing that you should have fixed earlier. 

But then you’re in a rock and hard-place scenario because then you can’t dial back the advertising because you’ve got all these people that you’ve hired. The more you sell, the more your reputation goes in the tank because the stuff’s not good, and so you get a really hard scenario. Fixing it first, fixing it early sets you up to build a much bigger business later.

Number four: under a million dollars a year, **it’s one channel, one avatar, one product.** I see too many small business owners saying "Hey, I’ve got two businesses" or "I have seven products” or “I have two different avatars” or blah, blah, blah, right? No, focus on one specific type of customer. 

If you say yes to everyone with money, you’re basically saying no to your business because you’re never going to be able to focus and make something really good. You can’t serve six customers and then make a good product while only doing $100,000 a month. 

It just doesn’t—like, it's too small volume; like, you don’t get enough reps. You need to do one very specific thing, which means you have to say no to people who aren’t that type of person. Serve one problem, which means you have one product for that specific avatar. 

You get better and better at templatizing the service or product, whatever the product is itself, making iterations on it, and you advertise through one channel. Meaning you just know how to make cold email convert or you just know how to make cold calls convert or you just know how to make TikTok ads convert or you just know how to make YouTube videos that convert, whatever your channel is.

You just stick with that channel because as soon as you’re like, "Oh, I’m going to do two different things," that’s not the objective of this stage. You just need to get it reliable so that you can then keep tweaking the product so that you can **10x** the existing channel.

Once you get to about a million a month is when I recommend starting to think about second and tertiary channels of getting customers. Part of the reason I recommend that is that when you start a second channel it’s going to cost you money and it’s going to cost you time. 

The reason that you keep that one channel and keep doing it longer than you think is because you need to be able to get it working at the same level or higher with not you doing it. So that you can have the secondary channel. If you’re the one who’s gassing this first channel and then you move to the second, well now you have this second one that’s not going to be working out nearly as efficiently as the first one, especially in the beginning. 

The first 3 months, 6 months, it’s not going to be cranking like the first one is. But the first one’s also going to go down because you’re not there. So you spend the extra time there—you put the right people in place—you make sure the training is such that they actually can meet or exceed what you were doing on your own. 

Then when you start the second channel, you can pour resources into it because you still have cash flow from your main thing. That little switch is where most people get lost and they just crush their businesses. So don’t do that.

To give you guys some context, I didn’t open up a second channel of acquisition until we were at **$4 million a month**. Now mind you, I started with paid ads because I was good at paid ads and I learned how to run paid ads in my local business, which then, when I went national, I had to do the same skill set.

After **$4 million a month**, I was like, "Okay, I need to get this second channel going," and so I started increasing that channel via cold email, cold calling, cold DMs with an outbound team. I say that because a lot of people are like, "Shouldn’t I do this?" I try to delay that as long as I possibly can because I know it’s going to cost a huge amount of time, a huge amount of money, and it might not work for 6 to 12 months.

To give you context, it took me 12 months for outbound to be responsible for half of my revenue, so it’s not going to happen overnight.

Number five: **Always start for free.** I know, and I don’t usually use explicit, 100% black-and-white language, but I have yet to see a time where starting for free has not made me more money. 

Let me explain. When I started my fitness business way back when, I started with free. I wanted to get people results and I said, "I don’t have any experience, so please let me just train you for free." Because of that, I had lower stakes. Because they didn’t pay me money, they’re still paying in other ways. They’re still paying time; they’re paying inconvenience—all the other things that a customer has to do.

Those costs are still there, by the way. Those hidden costs are the things that you want to decrease as much as you can in your product so that you can charge more money. Because you'll find over time that the most expensive thing about your product often isn’t the price; it’s everything else you require a customer to do as a result of the purchase.

What things do they have to give up that they like doing as a result of the purchase, and what are the things that they have to start doing that they hate doing as a result of the purchase? This happens with everything! 

When I say “like” and “hate,” I use those as extremes. But fundamentally, there’s some sort of friction, some sort of inconvenience. Like when I buy a car, I have to now get gas. That is now an inconvenience in my life now compared to all the other cars. Maybe all cars have that inconvenience until they have an electric car, and all of a sudden that inconvenience has been removed because I can plug the car in at night.

So, I’m a co-owner of school.com and I talk to beginner entrepreneurs a lot. I see this happening more often than not: they say, "Hey, no one wants to buy my thing," and I say, "Okay, well where’s your... where are your testimonials? Where are the people that you’ve used before this that you’ve helped get the result?" And they’re like, "Well, I don’t have any." 

I’m like, "Well, why would I believe you?" They’re like, "Well, I have this amazing offer," and I’m going to talk about this in number six at length. But if you don’t start for free, why should anyone believe you? 

If you are doing this for the first time, why would you want to take money for something that you don’t even know if it’s good yet? This can both give you the conviction and give you the confidence to get going because you actually have some results that you can go off of. 

You can use those results to market to get more customers. I do this at every level of business. Everything that I do, I always start with free no matter what it is and whether it’s a new product line in a massive company.

One of our portfolio companies, we built out a software product for the existing service base, and so we said, "Hey, we can now have a DIY version of our services that you can use with this software product." What did we do? We started for free! 

We took our top 100 customers and said, "Hey, why don’t you try it out? Let us know, give us feedback," and they just kept giving us feedback back. Honestly, in the beginning, the fact that some people want to charge for this is insane. It’s like they’re giving me so much valuable stuff; I’m just happy that they use it, right?

So you go with free, and then you go with a small, small amount of money, and then you keep raising your prices over time, which I’ll get to in a second. For those of you who are worried about your pocketbook, like, "I’m running all these costs!" Well, yeah, that’s why it’s called investing in a business.

People who you work with for free can make you money in three ways. Number one is they can leave you a testimonial. Number two is they can refer you other customers via word of mouth that you did a good job. And number three, they can actually stay on and pay after a certain period of time when you do make it not free and you make it for money. 

Because if you want to keep surfacing, and this is ideally how it works out, is that you do such a good job that they’re like, "I don’t want this to stop!" Then you say, "Great, now you can do it in exchange for money because I can’t do this anymore in exchange for nothing," because I have enough demand because I’ve done a good job that I have these referrals and I have this proof that people do want to pay me for my services.

This leads me to number six, and this is a big one: **Proof over promise.** A lot of beginners do this, and they read, you know, $100 million offers, and they’re like, "I have a grand slam offer." And so because of that, I’ve got this big thing with all these bonuses and the stack, and now it has these guarantees, and I’ve got a premium price—yet no one’s buying it.

So what I want to do is walk you through a hypothetical. Let’s say on one extreme we’ve got somebody who has an amazing, crazy awesome offer for whatever they promise you—the world and beyond. On this stream, we have the same core product or core service as the first guy, except he has no crazy offer. He just has **1,000 testimonials.** 

Who is going to get the most customers? This guy! Your proof is going to do more selling than any promise can possibly do. Because the promises all function as an approximation of the likelihood that they’re going to get a result and proof is always going to be more compelling.

When you're starting out, you want to capture as much proof as humanely possible. I have a huge amount of stuff on proof because I’m obsessed with it, but I’ll give you four very good things that you can do to make your proof more compelling.

Number one: **Recent proof is better than delayed proof.** If proof was 5 years old, proof that's from last week is going to be more compelling. 

Second, you want it to be as visual as possible. Just a bunch of words on a screen is less compelling than a screenshot of someone's bank account after they made money or someone saying, "Hey, I lost 20 pounds," is not as compelling as the picture of them losing 20 lbs, which is also less compelling than a video of them weighing in and then a video of them weighing out.

The third component for proof that I'll give you is you want **high volume**. Most businesses actually have a lot more proof than they know they do; they just never capture it. 

One of the things that I did in our brick-and-mortar chains that we had with all of the gyms I do across all our brick and mortars is that if you look at Yelp, you look at Google, you look at Facebook, all of these have reviews for your business. 

For me, if you're digital, then you have Facebook reviews on your Facebook page and things like that. So I would go into the stars you click into, and there's like a hundred of them, and then you just screenshot each of them. 

If you have 100 five-star reviews on Yelp, that’s like a mediocre Yelp account, right? But if I screenshot 100 of those and then I frame them and put them on my lobby wall from floor to ceiling, it’s overwhelming the amount of proof that is! 

So most businesses have way more proof than they think they do; they just don't leverage it. One of the easiest things you can do is take the screenshots of all review sites across all platforms, show them individually, and showcase them as your new wallpaper. 

The fourth element of proof is that you want to capture pain. So let me explain this. I’ve been able to look at a zillion ads across all companies where they have testimonial ads from customers. The thing is, the content that begins with pain converts significantly higher! 

This is my theory around this, which is that the pain relates to the customer or prospect where they're currently at. If they start with the promise, it's too far disconnected. But if you start with pain, they can relate to the person, and then you can take them through the story of them getting the result. 

But if you start with the end result, it’s too disjointed; it’s too far away; it becomes less believable. So if you had to pick between proof or promise, double down on proof. 

That’s also the reason that I tell everyone to start with giving stuff away for free because it’s the easiest and fastest way to get tons of it. The best time to ask someone for a testimonial is at the moment of greatest satisfaction.

All right, so that’s also, by the way, different from the best time to sell. Because you want to sell at the moment of greatest pain. You want to get a testimonial at the moment of greatest satisfaction. 

So think about it this way. If I were to say, "Hey, you have a steak dinner, and you have a steak, and you're starving; you're like, 'Oh, this is great blah, blah, blah.' The moment to sell you the steak is right before you've had the steak. 

Now after you have the steak, is that the moment that I say, 'Would you like another steak?' Not really, because you're like, 'I'm full; I'm good.' So that's the point of greatest satisfaction, not the point of greatest deprivation. 

Now, after I've had the steak, if I say, "Hey, would you mind looking in the camera and saying how great the steak was?" People are like, "Oh my God, it was amazing! It was so great, you guys should definitely check this place out! It’s awesome!"

Right? The point of greatest deprivation is when you make your sale. The point of greatest satisfaction is when you collect your proof.

Number seven: **Raising prices almost always makes you more money, but you hear no more often.** Let me break this down. I had a sales guy in one of our portfolio companies, and we doubled the price of a product. 

A lot of people are really afraid of a 10% or 20% increase. Like, "I’ll test 4X, 5X price differences." Pricing, in many instances, is far more inelastic than you think it is. 

All right? So, elastic versus inelastic pricing—I’m not getting into that—but basically if you have a $5 sandwich going to a $10 sandwich, there’s a lot of elasticity with food, meaning people are very responsive to small increases in price. 

The classic counter example is if you have life-saving medication—it’s not very elastic at all—meaning if you double the price, people are still going to pay for it because they need to live, right? 

So the thing is that if you have a very saleable thing, the price is usually a lot more flexible than you think it is in terms of how much you can move it up. I like making massive price tests, but the thing that you have to have when you do this is the balls or the stomach to deal with more no’s.

So when I walked that sales team through the price increase, I said, "Hey, we’re going to double the price." I said, "You have to understand that we’re for sure going to get fewer yeses. But the question is: will we get half the yeses?" 

So we had a 35% reduction in conversion percentage, but we doubled the price. We made more money in multiple ways. One, **we made more absolute revenue**; we literally just made more top line. But the magic of this is that let’s say the cost of our thing was $500, and we sold the thing for $1,000. 

Okay, so we have 50% margins. Well, if we double the price, we go from making $500 in profit to **$1,500 in profit.** So, I actually tripled the amount of money I made by doubling my price. 

Even if I have a 35% reduction or a one-third reduction in sales, I tripled how much money I made on the other two-thirds of my sales. 

Which means doubling the price with a one-third reduction in sales still doubled the profit in absolute amounts despite selling one-third fewer customers. One of the nice benefits of having fewer customers is that you have fewer costs associated with delivering on them. 

So not only is the gross margin per customer higher, your fixed costs that you have to incur to continue to expand your infrastructure go down. Fundamentally, a smaller amount of customers that make more money is an easier business to run than more customers that make you less money. 

Let me tell you how important this is. I’ve seen businesses that have not changed their prices for five, six, seven years, right, because they’re afraid to do it. 

Whatever, but I want to give you some real hard truth right now. In 2017, if you sold something for $100—that was your only product—and you were running 20% margins as a business, if you did not change your price from 2017 until 2024, that $100 now means that your costs in that business have gone up by 20%, which means that your profit is now zero!

If you feel like your margins continue to compress year after year after year—it's usually because you're not appropriately adjusting your prices! To give you context, $79 in 2017 is the equivalent of $100 today. 

That would be like you going back in time where you had a 20% margin business running it at a $79 price point rather than a $100 price point. You just, like that, eliminate all the profit in the business.

You have to do the reverse of that because inflation is a compounding threat to your business that every year stacks on top of itself! If you're not making 3%, 6% increases in prices at least annually, you're not even keeping up with inflation! 

To give you a little story around this, Warren Buffett, when he bought C candies, said that he only wanted to control one thing. What that one thing was is that every year he would look at all the prices of all the candies and he would ship them the new pricing. 

He has raised prices **50 years in a row**—sometimes in a single year as high as **177%** onto their pricing—and as a result of that, he’s cleared himself a billion dollars in profit. 

If it was the one thing that he focused so hard on, it might be something worth thinking about! 

If you do make a pricing change, there are two components to this. One is new customers; the other is old customers. The easiest thing to do is just change the price and just apply it to everyone who’s new. That’s simple! 

And if you're in a transactional business, then it's fine even because the old customers come back and buy again, right? But if someone’s on some sort of recurring service, it’s a little bit trickier.

Now I have some tactics around this, but I’ll just give you the high levels, which is you want to have a price increase letter. 

You want to talk about all the things that they’re going to get as a result of the investment that you’re now making into the business and that it’s the only way that you’ll be able to stay in business, given inflationary pressures, etc. 

You want to say, "Here’s the thing, here’s the stuff you’re going to get. I want to keep my promise to you, which is to keep our thing as good as possible, and the only way for me to ethically keep my promise is for us to reflect that in the prices, which are now having to be changed effective this date. But don’t worry, I’ve grandfathered you into your old price by this time." 

And that’s key. Old customers want to be grandfathered. You say, "So I’m grandfathering you in until this." That way, it’s not like it’s changing tomorrow; it’s delaying the pain and giving them a gift right now as a way of honoring the fact that they’ve been loyal customers to you.

Those are the main bullets of what that price letter would go out and say. If you are going to raise your prices, you want to be measured about it. You should know what your conversion rates are prior to you making the price change, and you should be able to give a statistically significant sample size of shots on goal with the new price before you make a decision.

If you get on the phone and the first two people say no, well, we knew more people were going to say no; we already expected that! If you have, call it a 40% close rate right now, well, if you make double the price and you go to 30% close rates, then that’s still a great deal for you!

You might just be getting the first two NOs out of the seven NOs you already know you’re going to get when you talk to 10 people. 

So talking to two or three people getting NOs doesn’t mean you need to change your price. It might have just been the NOs you’re normally going to get even at your lower price, and so you can’t be emotional about this; you have to be calculated. In my opinion, this is the reason most people don’t raise their prices or can’t do it successfully.

Number eight: **Talk to customers to solve all your problems.** Paul Graham said this, and I think it’s really good: "You can solve just about every business problem by talking to your customers." 

So if your advertising isn’t converting, talk to your customers. If your pages aren’t converting, talk to your customers! If the price seems weird, talk to your customers. If the product isn’t delivering, talk to your customers. 

At the end of the day, your customers are the people you serve, and they have all the information you need to make your product better. So especially when you’re starting out, even if you have very low prices—let’s say you charge **$10 a month for something**, all right? 

If you want this thing to have thousands and thousands of customers, okay, fine. But if you don’t talk to customers, you’re not going to know what’s going to drive them to convert, buy, and stay. So, I come from an industry where people meet face-to-face in person to sell $10 a month memberships. 

I don’t want to hear it! All right, I spent the first four or five years of my career selling $30, $50, and $100 things all day long. I don’t know a very successful advertising entrepreneur who is a rainmaker—meaning they know how to get customers—who didn’t have four or five years of hardcore sales under their belt that no one knew who they were. 

That’s the rocky cut scene; it’s where you take hundreds and thousands of calls with customers where you hear the words they use. So that when you say, "Does this suck?" they say it differently, and then you say that in your advertising.

When you take these sales calls for $10 a month, you’re not doing it for the $10 a month; you’re doing it so that you can learn more about them, and you just so happen to get paid. You find out the words that get them to move because you might think these are all the selling points to your thing. 

But when you're talking to them, nothing really happens. Then you say one thing, and then boom, their eyes light up, and they’re like, "Yeah—that!" 

Then all of a sudden, you reorder your sales scripts, you reorder your headlines, you reorder the roadmap on the things that you’re going to improve in the product because these are actually the things that are driving purchases for the first purchase and getting them to stay.

Most entrepreneurs are afraid to talk to customers. I have no idea why that is. They’re afraid to talk to random people who are giving them money. I don’t get it!

But one of the easiest ways you can learn more about your business to make more money is to pick up the phone and call people who’ve given you money and ask them why they did. Just as importantly, maybe more importantly, talk to all the people who didn’t buy and ask them why they didn’t.

If you think you’re above this, you’re right; you should just keep doing that. But for everybody who wants to beat that guy, just get on the phone with your customers.

So inside of school.com, we run a contest every month where the top 10 people who are new to the platform, who generate the most revenue in their communities, get to fly out to Vegas and spend a day with me. Part of the reason we do this is that, of course, it’s a great prize for all the winners, and they get to meet each other, and it’s an awesome event. 

But for us, we get such valuable user feedback from super users. These are the highest, most invested users! We’re like, "Hey, do you like this thing? Hey, this is the product room; hey, would you prioritize this over this?"

Recently we used the feedback from this group; we said, "Hey, we have this thing that could be controversial with the rest of the community because we could see people taking it like this. If we made this change in the product, what would you guys think?" 

Unanimously they’re like, "Oh no, that would make us more money; we’re totally in for it!" So we’re like, "Wow!" Months of deliberation of like, "Oh, do you think they’ll like it? I don’t know if they’ll like it; what if they don’t like it?" All of that got solved by just asking them, and then we got our answer, and then we did it, and everyone was happy.

The beauty of this is that you get certainty around your decisions, and so you can make decisions faster. The entrepreneurs who make faster decisions move faster. 

When you do talk to customers, whether it’s in person, like this school event that I was talking about, or just on the phone, what do you think happens to them? You can take someone from a neutral customer to a super fan in one call. 

You can tell the story of the business. You can tell them why you started; you show that you care. And guess what? That person might bring you 10 or 50 more people when you think two rows down the line of word-of-mouth referrals. 

Of course, they’re probably going to stay way longer than they would otherwise because if they do have an issue, guess what they’re going to do? Instead of cancelling, they’re going to call you!

A great time to do this—a lot of people don’t like—is that the moment people ask to cancel. So if you have any kind of recurring membership or if they ask for a refund, if you have one-time transactions, get on the phone with them. 

It’s not necessarily to try and hard sell them back into it, which by all means you can, but the more valuable thing is to understand what went wrong. You’d be surprised how many times you just let someone vent, and here’s the key: don’t minimize what they said.

Get more angry about the reason they’re cancelling than they are because you’re like, "That’s ridiculous! That should have never happened to you! I can’t believe that was your experience! I completely understand why you’d want a refund; I would want a refund ten times over! I get it!"

All right? Is there a world that I can make this right? Or what would it take for me to make this right? So now you're getting into them solving what it would cost or what it would take for them to stay. More times than not, it’s not as big as you think.

You want to talk to all sorts of customers. You want to talk to the super users; you want to talk to the moderate users; and you want to talk to the low users. But you're going to get different things out of it.

I don’t prioritize a roadmap or things that I’m going to reinvest in the business based on people who are not that invested in the business. I want to talk to the super users who are getting the most out of it because they’re going to have more context. 

But in terms of what problem do I want to solve for these people? It’s like, why didn’t this work for you? This would be stuff that’s like friction. This is going to be way more about getting new customers, like I’m going to solve new customer problems by finding out why people didn’t buy or bought and then left.

And then I’m going to figure out how to make my customers more valuable and get them to stay longer by talking to super users—the best customers you have—about what would make this even better.

Number nine: **What to say to prospects on the phone when you’re just starting to get your first sales.** I use something called the **Closer framework**; I’ll make it very short, but the call should go something like this:

C: **Clarify why they’re there**. "So what made you hop on the call? What made you take a step? What made you respond to my email? What made you comment on my post?" Whatever it is, they took an action to become an engaged lead, and that is your advantage because any person that you get on the phone with, with the exception of a true, true cold call first pick up—except for that—everyone has responded to an email, they’ve commented on a post, they’ve responded to an ad, they’ve opted in, whatever. 

So you ask them why they did that. That clarifies it, gives you also big authority in the frame because they’ve taken a step toward you, and you’re just receiving. You say, "Hey, why’d you do that?" 

Then they’ll tell you what it was. Then you move on to L—**like**. "Okay, so what I’m hearing is…" And this is labeling with a problem. "It sounds like you want this, and this is the problem, or you want to have this outcome and you haven’t gotten it yet; is that sound about right?" 

They’re going to say yes, and you’re like, "Okay, cool." Then you go to O, and you say you’re going to overview their past experiences. “Okay, so what have you done so far to try and make this happen? Why is this so important to you? What else has happened in the meantime that has cost you from not having this occur?” Right?

And we call this the pain cycle. The reason you do the pain cycle before you sell something is that you want to temporarily increase their deprivation around that outcome. 

You’ve probably heard in politics, whatever the topic is of the debate, it’s like, "It’s the economy; it’s education; it’s the border," right? Whatever media puts more attention on is what people say is the main reason they vote for candidates. 

They basically make that the topic of the election, which is the macroeconomic situation or whatever. Right? When you’re in a micro event, like a sales call, you have sometimes 10 minutes, sometimes an hour to basically, in that very small call, elevate the importance of that problem in their life so that you can motivate action.

They were kind of hungry when they get on the call but as you talk about the food that they could be having and the bad food they’ve been eating every single day and how crappy it is and how tasty and delicious this food is, what are we doing? We’re increasing their deprivation! 

It goes to S, which is you **sell the vacation**. 

The reason I say sell the vacation, not the plane flight, is because most salespeople, most new entrepreneurs want to focus on their features. They want to talk about the flight; they want to talk about TSA; they want to talk about check-in; they want to talk about their bags; they want to talk about their seat—all of these things that are on the way to Maui, their destination. 

You want to just talk about Maui. You want to talk about the lick-your-fingers-good what it’s going to be like when they have a full stomach and they’re feeling great with their family at the restaurant—that’s what we want to talk about! 

We don’t want to talk about how they’re going to order it; we don’t want to talk about the selection; we don’t want to talk about how many times they’re going to get their drinks refilled; we don’t talk about any of that. 

We want to talk about Maui! We want to talk about being on the beach with the wind in their hair and a Mai Tai in hand! That’s what we want to talk about! 

Sell the vacation! Typically it’s a three-point pitch. By the way, you can separate anything into three points right now! 

You just chunk up or chunk down based on "Hey, what does it take to be successful? It’s like you need fitness, nutrition, and accountability. You need the leads to be timely, personalized, and qualified," right? Whatever it is! 

So it doesn’t matter what you’re selling; you can come up with three points that people have to say, "Yeah, if I had all three of those things, I would succeed!" 

Now at that point, if someone doesn’t say yes, you move on to E, which is **explain away their concerns.** These are what the specifics they have—the reasons that they’re not buying—which is usually going to be some sort of specifics about the program, something time-related, something money-related, something decision-maker related, meaning they have to give the decision-making authority to somebody else, or finally, they're just simply avoiding the decision for fear of making a mistake.

You need to account for all five of those and know how to overcome each of them, which I cover in a 4-hour-plus video you can watch on my channel somewhere else.

R is **reinforce the decision**. So once they’ve made a decision to buy, you’re not done yet! Now the work begins! The next 24 hours is crucial to making sure that they feel really wowed and impressed with your business.

Most customers will judge a business based on the first 24 hours post-purchase. So if you say, "Hey, I’m going to get you three things the next 24 hours; you’re going to get introduced to this person; she’s going to do this, and this is what’s going to happen next," then you make those promises and keep those promises within that time frame.

Ideally, you do it even faster than you promised! You want their impression to be like, "Man, these guys are dialed!"

The Closer framework is simple—simple enough that you can teach it to somebody else. When I was starting in my gym journey, I had sold every single membership for a year plus. Until I had somebody else come in who had never sold weight loss and had them follow the CL-S-R framework in the sales pitch, then saw them close their first sale without me, I actually cried. 

I was like, "Oh my God, someone else can sell this? This may actually be a business!" Learning to sell in this framework also makes it duplicatable so that you can give it to somebody else over time.

Number ten, and this is big: **Before you even think about doing something new, do 10 times more of what’s already working.** This is like one of the things— as soon as I buy a portfolio company, I go to the head of marketing, I go to the founder, and I say, "Hey, why can’t we 10X what we're currently doing? Tell me why we can’t." 

Honestly, two times out of three, they’re like, "I mean, we could." I’m like, "Then why aren’t we doing that?" What happens is they have all these other priorities that are not going to 10X the business, and they have this one thing that we already know works that we have nothing that's stopping us from 10Xing the business. 

I say, "Great! Let’s do that! Call me in 6 months." Now the thing is that in one out of three times, they’ll say, "We can’t 10X this because of this thing." Then I say, "Guess what? The constraint of this business is solving that, and if you’re doing anything but solving that, then you’re not growing the business. 

You’re not growing as fast as you could be growing." You’re doing outbound— it’s like "Great! Why can’t we do 10 times the outbound?" Well, "I don’t have enough leads from lists." Okay, great; so our constraint of 10X in this business is that we need to find more sources for lists. So we need to either scrape more lists, buy more lists, or make more lists ourselves. 

Eles? Okay, that’s solvable! Let’s do that! If it’s, "Hey, if we 10X our advertising dollars, like we just need to add more to the budget. Oh, we can’t do that because our ads aren’t good enough." Okay, great; so we need to have more creative. That’s the constraint of the business!

If it’s content—and by the way, why can’t we make 10X content or make our content 10 times better or maybe realistically a combination of the two, which is we’re going to put out two times the content, and we’re also going to try to make it two to three times better? Great! 

Then guess what? Now we have a Sixx—can we triple the content and make it three times better? Sure! Well, what did we do in the best content that we had that we're not doing in all the other pieces? Great! Can we templatize that and make that the playbook that we use with every piece of content? Great! 

We’re not doing that! Cool! Let’s do that before doing any of these other ideas that you had. A lot of entrepreneurs, because it’s boring to them, they figured out how to do this one thing, and they think, "Oh, I should figure out how to do something else." 

Once you get something to work, the whole goal is to beat the living hell out of it; it’s to squeeze every last drop from that thing that works. And you do as much as you possibly can as well as you possibly can before even thinking about doing something new. 

Let me walk you through the five stages of the traditional entrepreneur for advertising or even for business. They have something that they hear about that they think is cool, so they go into uninformed optimism. They’re really optimistic, but they have no idea.

Then they jump into this new thing, and they become an informed pessimistic. They find out way more about this thing, and they’re like, "Wow, this is actually kind of hard." Then they go to stage three, which is the value of despair, where they’re like, "Wow, this isn’t working; this isn’t what I thought it was going to be." 

What they do is dot-dot-dot, they start over at uninformed optimism because they hear something else is easier but they miss out on steps four and five, which is they become an informed optimist! They say, "Okay, I understand how outbound works; I understand how paid ads work; I understand how organic works, and what are the things that it takes to scale and how much work it really is." 

Then finally get to level five, which is achievement; they actually achieve the goal! But most people just repeat 1, 2, 3—1, 2, 3—uninformed optimism, informed pessimism, value of despair—starting back over, and they just hit all three of those over and over again, whether that’s new marketing channels, new products, new businesses.

This is a version of the woman in the red dress; it’s always deceptive to think that the new thing is going to be easier. The only reason you think it’s easier is because you don’t know enough! 

I wish I could just give you the scar tissue of having done that three-part triangle over and over again. All I can tell you is that when I get that little tickle in the back of my neck where I’m like, "Ooh, this looks exciting," it’s now become a warning flag to me because I’ve been burned so many times doing it to say, "Oh, I must not know enough about this," because everything is hard.

I’ll give you an analogy that a mentor gave me that I really liked, and I think it applies to a lot of things, but when he was talking to me about departments in my business, he said, "You have to know where the bodies are buried." 

I was like, "What do you mean by that?" He said, "If you have ever talked to the head of a department, like HR, legal, or whatever, and they say, ‘Yep, everything’s good,’—if you don’t know what problems are actually going on in the department, you’re too far away!"

So that’s, in a way, uninformed optimism. They’re just telling you it’s great, and you don’t know any better. You should know enough about the business to know where all the bodies are buried. You should know where all the skeletons in the closet are.

So if you’re getting into a new thing, you have to know all of the ways—or as many ways as you possibly can—about what’s going wrong! Once you do a little bit more research, you often find out that there’s a lot of things you don’t know about, and guess what? The thing you do know is working right now!

The likelihood that you doing 10 times more of that has far fewer unknowns than you doing brand new on something net new! Entrepreneurship already has so many risks and so much unknown! 

Basil talks about this, he says we want to manage as many of the risks as we can. Of course, we’re going to incur some risks that are going to happen that are unforeseen to us. But the risks that we know about, we want to limit to the greatest degree possible.

Because there’s enough risk of our business going out of business by being a business! So why take on more risk for no need? It’s risking what you have and need to survive for what you don’t have and don’t need!

This brings me to number eleven: **Growth is stressful; stagnation is stressful; decline is stressful.** This means that business is stressful. 

The only stress-free people are dead! If you’re in business, you need to accept stress as a fact of life and not something wrong with you or wrong with your particular business. 

It’s just that things are stressful in general; welcome to life! I see a lot of entrepreneurs try and change their businesses because they feel stressed. But every scenario of business has stress; there are different kinds of stress, but they’re all stressful.

The idea that there’s something wrong with you or wrong with your business because it is stressful misses the point of how business works. I’ll tell you an analogy to make this make sense. If you’ve been in business for any period of time, think about your first business or think about your problems that you had two years ago or three years ago in business. 

You’re probably like, "Oh my God, those weren’t even real problems! Those were like nothing problems!" Well, future you three years from now thinks that about your problems right now. 

I think about this a lot because when I think about my problems of how I was worried about how to get trainers to show up on time and somebody's membership wasn’t recurring, I had churn issues, or whatever it was within the gym that I had. 

Those problems I could solve in my sleep now, right? The problems that I have are bigger! The thing is that you just become more enduring; you become tougher, and your tolerance level for stress or what you deem to be stressful goes up. 

What’s really interesting about this is that I still have the same problems I had when I had a much, much, much smaller business. I just don’t think they’re problems anymore! And that means that my choice to categorize the issue as a problem is actually a greater source of stress than the problem itself. 

If you can adopt that perspective, you can be less stressed as you grow and make better decisions. I wanted to hit this point because I almost stopped and killed so many businesses early on because I thought there was something wrong with me or something wrong with the business because I was stressed rather than accepting that stress is a fact of life and that I’m going to continue to be stressed as long as I’m alive.

Fundamentally stress comes from an aversive stimulus—a stimulus that’s not enjoyable, right? But if you grow, there are tons of things that are not enjoyable about growth; if you’re stagnating, there are tons of things that are not enjoyable about stagnating; and if you’re declining, there are tons of things that are not enjoyable about declining. 

So there are just always going to be things that you don’t like! Get used to it!

Number twelve: This is a really tactical one. I’ve come to adopt this theory of something called the **look-back window**. Customers determine whether a purchase was good based on the last purchase they made.

If you’ve heard the phrase, "What have you done for me lately?" It basically is phrasing for the look-back window. Let me give you an example. If you’re an agency owner, right, and you start running ads for a customer. 

Now, let’s say the first month you charge $55,000, and they make $40,000 with your ads; they’re happy, you’re happy. The next month you charge the same $5,000, and let’s say they make $5,000! Well, they’re less happy. You still made $5,000, but they’re not thrilled.

But in your mind, you’re like, "Well, I covered myself last month for eight-plus months because of how much money I made them," and on the third month they cancel, and you’re like, "WTF! In the first month, I made you eight months’ worth of paying me!"

But the thing is, the way the customer perceives that is, "The first month I paid five and got 40—that was a good deal. The second month, I paid five and got five. Third month, you know what? I don’t want to risk it anymore; I’m out!" 

They will make a judgment on the purchasing decision based on the last purchase. We can leverage that as business owners by extending the look-back window, which means that the less frequently we bill, the longer people stay.

Think about this for a second: if I bill every single day, there would likely be a day that I had not provided that customer value, and maybe there are two or three days in a row. So likely they would cancel two or three days into not getting value.

Billing daily is pretty high. If I bill annually, they would only have the opportunity to churn once a year. The thing is at that point of churn, what would they do? 

Now in the agency example I gave, let’s say they made the 40 and the five, and then they made five and five. Let’s say throughout the year we had two more good months, and all in all, we made them $100,000 and they paid us $60,000, right? 

Now when they look back, they’re going to see 100 versus 60. But if we bill monthly, there are going to be multiple months where they were negative or break even! 

So the longer the window of time you do between billings, the longer the time you have to provide value in excess of your price. It allows for less volatility in their business and yours.

This is something that took me way too long to learn. But as much as possible, try and bill for longer durations. I’m not saying get people to commit to contracts; that’s not what I’m saying! 

I’m saying try and **bill upfront for longer periods of time**. I’m willing to take a hit on some pricing, which may seem counter to what I’m saying, so that I can get higher LTV. 

Meaning if I know that I can cut churn by 3X by reducing my price by 30%, so they can pay three months upfront or six months upfront, then I’m more than happy to do that.

There are two ways you can use a strategy. Strategy one is you just say, "This is how we do business, and we need people who are committed," because there’s going to be volatility, and we don’t want the short-term volatility to affect our relationship. 

That’s a legitimate reason to do it! The other way you can do it is just have it as one of two options—one that has some sort of prepayment discount associated with it or prepayment bonus, which is one of the things I like: some level of service or some guarantee that comes with prepayment that doesn’t come with month-to-month.

By the way, you can add a guarantee to people who prepay and not to people who don’t! So if people want to decrease their risk, think about it: they’re taking on more risk by prepaying, but you attenuate or offset that risk by adding a guarantee. 

So they paid the same price, but they get a reduction in risk for taking on an increased amount of risk. If you offer annual pricing, we know across our portfolio because we do this in a lot of businesses, if you don’t make it the default payment method, and you just offer it, you’ll get about 10% to 15% of people who take the prepaid annual option. 

Now here’s what’s cool about that: if, call it, 10% of people take that option, you double your cash flow in the business because you get a 12X price on one out of 10 or 1 out of seven people who decide to buy.

Well, if you do that, then you double the amount of cash you get upfront! For many people and many businesses, that little change alone can allow marketing and advertising to be profitable. 

The reason having more cash upfront is helpful for a business owner is that you can offset the cost of advertising and the cost of sales commissions. So you can have these costs you have to incur to get the person in the door. 

If you can frontload the cash from the customer, it means that you can do more of that faster because of something called a **cash conversion cycle**, which basically just means how fast do I get the cash back that I put out to get somebody new in. 

If I can break even on that or even be profitable in the first seven days, then guess what I can do with the money? Go back and get another customer or two or five! Throughout my history as a business owner, I’ve had four periods where I had tremendous growth, and in each of those periods, it’s where I was making **two to three times** what it cost me to both acquire and deliver for two customers in the first 30 days.

What that means is if I pay to get a customer and then that customer comes pre-loaded with the cash to deliver for him and get another customer and deliver to that customer, then cash no longer is a constraint in the business!

Which means that I can crank the advertising until something else breaks in my business. I mean, this is how I had **$1,000 in my bank account in December of 2016**, and then in 20 months was doing **$4.4 million a month**. 

The only way you could do that is by basically having an infinite money glitch that happens because the thing is, the money that you want is out there! There’s money everywhere. If you look out the window, if you look in the room you have, there’s somebody who paints your walls, there’s somebody who manufactures that camera. 

There’s an electric company that funds this whole thing—there’s internet. There’s money in everything that you see with your eyes! And you’re afraid that there’s not enough money out there? There is! You just have to access it! 

You can access it with skill by making sure that the pricing that you have and the terms that go with the purchases that you have allow you to advertise profitably so that you can get as many customers as you darn well please without entering your pockets but by entering theirs.

Number thirteen: **Try and sell sawdust.** I was talking to a really good friend of mine who does ***100+ million a year***, and I was talking about this concept of sawdust. In the businesses that we have, I try and look at what are all of the assets that we already have at our disposal, right? 

With acquisition, for example, I was talking to him about this. I was like, "Well, I already have a building; I already have the team that runs my portfolio, and I already have all this lead flow from companies that are not big enough to be portfolio companies, but they’re still big enough that we could help and then someday later become portfolio companies." 

I was like, "Is there a way that, without adding more infrastructure to my existing business, I could use the sawdust—the stuff we already have—to create a product or service that would meet the needs of those customers?" 

The sawdust analogy just comes from saw lumber mills. They take these trees, they put them into the lumber mills, they cut them up and they put them into the planks. But at the bottom, what they figured out is there’s all the sawdust. Then some very intelligent engineer was like, "Huh! We’re just taking all the sawdust and throwing it out the back. Is there something we could do with this?" 

Well, it turns out that sawdust is great for plants and growing—putting it in a mulch and things like that. But also, if we mix this with glue, we have more wood planks that we can create afterwards just using the sawdust and the chips! So they created a whole other revenue line from stuff they already had!

Right now in your business, you have sawdust. It just takes a little bit of creativity to think, "How can I recombine some of these things that I’m already doing to then create another product line that doesn’t take operational infrastructure for me to add to sell?” 

Then those added product lines often are huge margin increases because it’s all profit! Because it’s something that you already are incurring the cost for your main business! So you can have this, and the key to making this work is that it **cannot** increase operational drag! 

If you have to do a whole other thing to make this work, that’s not what you want! The idea is that the sawdust is already there; then all you have to do is gather it, put the glue on it, and you have another product!

That’s the concept! I didn’t buy another building; I didn’t hire another portfolio team! I just use the team that I already have, and they come down and explain what they do within our portfolio companies to these businesses so they can become portfolio-ready. 

They understand, "Oh this is how they market at a higher level; oh, this is how they hire at a higher level; and oh, this is how they price; oh, this is how they sell; oh, this is how they scale sales teams." All of those concepts, I already have the information and expertise within my existing portfolio because I do it every day! 

But by just having another way for people to have access—obviously less than a portfolio company would to that team—then I have another way to generate revenue without having to incur the cost associated with building out a whole another business.

So the process that I go through is I think about all the resources and assets that I have currently available. You have to be as detailed as you can because it’s usually like a tiny piece from here.

It’s the glue that we use for this part of the log process, but we have the sawdust from over here. If we put those together—boom!—we have these new logs, and we have the plank-making machine. Let’s combine them, and we can do it ourselves, right? 

So you have to think, *"Okay, what are the talents and the people that I have available? What are the digital assets or physical assets that I have available to me? Is there a new way that I can combine these things?"* 

A simple one was like when we were in the gym space; I had brick and mortar, but we were only using the space from **5:00 A.M. to 9:00 A.M.** and then from **4:00 P.M. to 8:00 P.M.**  That means the rest of the day if I wanted to be a more clever business owner, I could say, "What businesses use a gym and turf in the middle of the day that I can rent that space to?" 

That’s sawdust! That’s additional revenue that basically costs me nothing! So all I would have to do is say, "Hey, I’m available! So if you have a team training thing or you have some sort of sports thing with kids that goes in the middle of the day or ends by 4, then you can use my whole facility.” 

My facility is generating revenue because I’m paying the cost of owning that facility 24/7. 

So a different way of using that is called excess capacity. If you have excess capacity—like Uber is based on excess capacity; people have cars—they're not using them. Airbnb—you have an extra room; it’s excess capacity! 

These are businesses built on other people's sawdust. You have sawdust in your business, so you might as well use it yourself! This is really the concept of double and triple and quadruple dipping; how can I get more leverage from the same thing?

So I tell stories about our portfolio companies, which like that gives me, I have to do an intervention with the portfolio company either way. But if I tell the story about it, I get to double dip and use that as content. 

So there are many opportunities where you can get leverage! You get more for what you put in by reusing the same thing in multiple different scenarios. 

Most businesses have tons of these excess capacity or double and triple dip potential sitting inside their business, and they’re not using them. 

The workshops that I talked about? I get to make content from those workshops, I get deal flow from those workshops, we get cash flow from those workshops, and my team gets more exposure to different types of business industries, so they also get better.

There are many value-additive things that stack on top of each other from one decision. By the way, if you want to check out one of our workshops, you can go to acquisition.com—we’d love to talk to you. It’s for business owners only, so if you don’t have a business, go to school.com, and we can help you start one.

Number fourteen: **Arm your salespeople.** I see too often a lot of founders and entrepreneurs have this animosity between their sales team. They feel like they shouldn’t pay their sales team that much. "My sales team is so needy; they only want lay down customers; they’re always complaining about the leads," whatever. 

No, like you should be the tightest with your sales team! Your sales team is the life—the cash flow—is the life flow of your business. If you don’t have sales, you don’t have a business! So they should get that level of esteem. 

Honestly, a huge portion of the business should be pretty much allocated to supporting them and their core activities. So one of the main things that I like to do is two things: one, I arm my salespeople with an Excel sheet that has all the pieces of content that I have that can help overcome specific concerns from customers. 

Right now if you don’t have a piece of content that overcomes every main concern a customer has about your services or your products, do it! 

As soon as you do it, the best converting of those things one—you’ll know because you’ll get sales from them— because people will DM you about it like, "Oh! I didn’t know that! Now I’m interested." 

Take those, put them into a list so that your sales guys have them. They can send them to customers either before they talk to them or after they talk to them, so that they can schedule a follow-up call and say, "Hey, let me send you this video; it might explain your concerns; let’s touch base tomorrow after you watch it." 

Then you can allow that content to do some of that selling for you. As soon as I did this with my sales team in fitness, when I had weight loss customers and then in gym launch when I had gym owner customers, our sales went up!

And the thing is this is nice because I didn’t have to train any of them anymore; they just now had assets and resources they could deploy to leads who were a little bit colder, who needed a little bit more selling, and they wouldn’t have to spend time on the phone! 

They’d just let me do the selling for them via the content that overcomes that specific concern.

Now, that leads me to the second one, which I’ll just make as number 15, which is really big. A lot of businesses don’t do this, but you should **unify sales and advertising**. Those should roll into the same person.

I saw this really early on in gym launch. We had two departments: we had a sales department, and we had a marketing department. Marketing always said the sales guys weren’t closing as many leads as they should, and the sales guys always said that the leads weren’t good enough or they didn’t have enough leads, right? 

But when we unified that under a **CRO**, Chief Revenue Officer—which, if you’re the founder, that’s you—you then say there’s really just an acquisition department. Fundamentally, as I see it, advertising and sales sit on the exact same continuum. You have low-information buyers, and you have high-information buyers.

Fundamentally, a low-information buyer needs not a lot of information or already has a certain amount of information to make a purchasing decision. A high-information buyer requires more information or doesn’t have as much information when they start talking to you.

You have to fill in more holes. Fundamentally, sales just fills in the holes that advertising failed to answer. 

If you have exceptional best-in-class advertising, you don’t need sales! It’s not that they’re separate departments; they solve the same problem. One just communicates one to many; the other communicates one-on-one. 

People buy real estate on the internet via auction—you don’t necessarily need to have sales if you give a customer enough information, they can make a purchasing decision. That being said, you're like "Wait, Alex, you have salespeople?" 

Of course I do! Because there's always going to be a certain number of customers that I can get people to buy automatically, and then there's people who still want more information.

Most likely, they didn’t see the advertising that answered that question. The salesperson can just say, "Oh, these are the three piano keys I need to play in order to get you to buy; great!" And they fill that specific information need to turn the customer from a maybe to a yes. 

So unifying the two departments is one of the highest leverage moves that you can make as a founder because it eliminates the cross-departmental BS. 

We’re all here to sell customers. Advertising works hand in hand with sales—not in competition with them—so that they can get a pat on the head from you or whatever director is running that department. 

Oftentimes, you are the chief revenue officer who’s uniting both of those fronts. But over time, if you can find someone who does that, that usually is the fast track to being a C. 

For example, at gym launch, Kale became Chief Revenue Officer, right? He stood on top of sales and marketing so that he could control the customers coming in the door. Then once he knew how to make it rain, he could run the business.

Number sixteen: **There are three legs to the stool.** Every business needs three big functional leaders: you need one person who's in charge of **getting customers,** acquisition; you need a second person who’s in charge of delivery and getting those customers exactly what was promised; and then third, you need someone to run the internal operations of the business. 

This is the day-to-day; this is everything we do to support the other two functions. So this is legal, HR. These are the things that are required to keep you out of prison! You have to have contracts; you have to pay people on time; you have to have a CRM that collects all this information.

This one functions as a vendor to the other two heads. So think about this: that person should never be making the big decisions in the business; they should be supporting the decisions that allow us to get more customers or deliver on those customers better.

If you think about it, those three legs of the stool roll up to the only three things that you can do to increase Enterprise Value in business: you can get more customers, you can make them worth more, and you can decrease risk in the business. 

That is where operations come in! If I know that everything's completely dialed, we have no massive risk that we’re supposed to, and we can get as many customers as we don’t or please and our LTV can continue to scale, that is a valuable business. 

It makes sense to have people in charge—one throat to choke, one chest to poke—who’s in charge of that function. In the beginning, you may be all three, but as you develop as the entrepreneur, you have to think, "Which of these three hats is more central to my best skill set?" 

Then you can start finding the people who will complement you. I’ll give you my rule