- Okay.
Secret number two.
Secret number two, you want to focus on value,
not dollar per hour.
How many of you are actually charging per hour
for what you do?
One?
Okay.
Two, three, yeah, stop.
Stop.
Don't charge per hour.
Nobody cares about how much they pay you.
It's not about the time.
It's about the value.
- [Announcer] The King of High-Ticket Sales.
World's Highest-Paid Consultant.
Media Celebrity.
Multi-Millionaire Entrepreneur.
Acclaimed TEDx Speaker.
International Best-Selling Author.
Dan Lok.
(dramatic music)
- If you're an employee, see, that comes
with an employee mentality.
How much I get paid per hour.
$12, $13, $15.
As an entrepreneur you don't get paid for your time.
You get paid for the value you bring to the marketplace.
You get paid for the results you deliver to your client.
As an entrepreneur if you get paid for your time,
there are a lot of years, you put in a lot of hours
you didn't get paid, yes?
So that's not how this thing works.
You get paid for results.
So you're not selling your time, you're not selling
your knowledge or expertise, you're selling the value
of the outcome you deliver.
Now, then it's your job to figure out
exactly what is the value, what is the outcome
you're delivering.
And the problem with most entrepreneurs is they're
not clear what is it they're actually selling.
I can sit down with all the people here,
I can say, unless you're in my group, nine out of 10
you have no idea what the fuck you're selling.
I'll say point blank.
You have no idea.
You think you do but if you dig deeper I'll say,
no, that's what they're buying.
Dig a little bit deeper, what are their emotional needs?
Not the technical shit, what are the emotional needs
that you're solving, you're fulfilling?
That's what we're selling.
What's your income goal?
So let's do some math here, okay?
Let's say assume your income goal is 300k a year.
If you sell, let's say, a digital marketing service,
professional service, at $25,000, 12 clients,
that equals 300k.
How many of you can follow that math, right?
25k, 12 clients.
That's one client a month.
Not 10, not 15, not 20 - one.
You have 30 days every month to get one client.
Just one.
Just think about it.
Versus getting 10, 20, 30, 50 clients.
It's a lot more work.
Or say you're consulting/coaching at $2,500 a month
reoccurring income, 10 clients times 12 months,
that's 300k.
That's only helping 10 people.
10, not 50, not 100 - 10.
That's all you need.
No different than Jena and Gary working on a deal.
One $10 million listing, six figures in commission.
One deal.
Or sell 10 $1 million homes.
And believe it or not, it doesn't take 10 times
more effort to sell a $10 million home
versus 10 $1 million homes.
It doesn't.
If you believe that, it's simple to believe that you have.
And we gotta fix that.
Or let's say you do a group coaching deal,
somebody was asking, a group coaching deal,
you could say even your lower tier script coaching,
and the higher tier is one on one, right?
At a thousand bucks a month, 25 clients, that's 300k.
Again, the infrastructure it takes to serve,
to service 25 people, versus 250 people,
2,500 people, it' a different thing.
It's a very different thing.
Now, in the marketing world, we talk about
some kind of a marketing funnel.
How many have seen that before?
Okay, a marketing funnel.
What is a marketing funnel?
Tell me.
What is a marketing funnel?
- [Man] (faint speaking)
- Prospects, okay, so, good.
So, prospects comes in.
And then?
- [Man] (faint speaking)
(laughter)
- We know how you are in dating.
(laughter)
Seriously.
So, prospects come in, then what?
- [Man] (faint speaking)
- No, they get some free stuff, right?
Some free stuff, right?
Some free stuff.
And then you try to sell them something for $100.
- [Woman] Low end.
- Low end, right?
$20 thing or whatever.
100 bucks.
20 if you have a $100 thing.
And then afterwards you would sell them something
for $500.
500 to 1,000, okay, here we go.
Okay.
And then after $1,000, then you can sell them something
for what, 2,000, 5,000?
Okay, so, okay, so five to 10k, right?
10k.
And then after that, hopefully, if they're very, very
good, you sell them something for, what?
Let's say 25k, just making this up.
25k, how's that, okay, that's cool.
And then you do all the stuff to bring them in
the leads, and you do free and you do this
and you upgrade them and do this.
Now, this makes sense, right?
This makes sense.
Now, this might have made sense five, 10 years ago.
This shit does not make sense today.
I'll tell you why.
Here's why.
First of all it takes too fucking long.
- [Woman] (faint speaking)
- By the time they opt into free and they buy something
here, what if it takes them five years to upgrade
to this?
Then you don't get paid for five years?
That's number one.
Number two, nowadays because of the internet,
the competition out there, the most expensive cost
in marketing is the cost, the acquisition costs
for a new client.
So it costs you a lot more to bring in a client.
That low-ticket offer, you're not gonna break even
on that.
You're gonna lose money on the front end
to being the client in.
If you do any kind of serious marketing.
And also, here's the biggest thing people don't talk about.
I can tell you right now the $20 client
is very different from the $25,000 client.
It's very, very different.
Your players with money who want this,
they don't need to buy this.
They just want this.
It's like you wanna buy a Ferrari.
You don't go in the dealership, "You know what,
I can't afford a Ferrari, can I just buy
kind of like the key chain, to start off with?"
(laughter)
"Then maybe I'll buy the blanket, kind of work myself up,
and in 10 years I'll buy the door."
(laughter)
"Then after door, hopefully I can buy the windshield,
and by the time before 65 I'll buy the Ferrari."
When you sell the Ferrari, Ferrari buyer,
they go, "I just want a Ferrari."
They don't want a key chain, they want a Ferrari.
It's a totally different value proposition.
These guys, they want information.
These clients, they want transformation.
They don't mind writing the big check,
they just wanna know this is gonna work.
They're buying time.
Instead of it taking me 10 years,
maybe it'll ake me only two years, or one year,
to get there.
They're buying time.
That's what plays with money.
Their value system is completely different
from the people who buy this.
Yet, you look at most people,
what do they do marketing?
They do marketing, "Let's sell them this,
then let's sell them that."
And you see it's a bitch trying to get them
to upgrade to this.
From a $100 client, you think you think you upgrade
to a $25,000 client?
Give me a break.
And once in a while you do get that.
Once in a blue moon, like once in a decade
you get one of those to upgrade, and you thought,
"This shit works," right?
That's the problem.
(laughter)
"Once in a while, I get someone upgrading!
Shit, this genius marketing funnel works!"
It doesn't.
Versus - would you like to know my model?
Would you like me to map it out for you?
Okay, I'll show you.
I don't do this.
99% of what I do is free, yes?
99%, stuff, it's all free.
By the way, this is practically free.
Believe or not, this is practically free.
Like each time I do one of these meetings,
it costs me like two grand.
It costs me money for you to be here, just so you know.
Seriously.
So, my model is this, it's the opposite.
So, the triangle, right?
This is my model.
Everything I do, 90% value, and free.
There's no in between.
I just want to serve what I call the 4%.
They go through this information, they watch my video,
they attend VEG, they take their time.
Johnny, how long have we known each other?
We've known each other.
You've been exposed to me.
- [Johnny] (faint speaking)
- A couple years, right?
And then it's like, oh, you're thinking about it,
at first you weren't thinking about doing business
or anything like that, right?
Just, you know, get exposure, maybe -
how did we first meet?
Was it online, was it Facebook?
Through Facebook.
Oh, this is interesting guy, right?
And then you see some of the work that I do, right?
And now, so far, let's say in that couple years of time,
I have not asked for a penny from you.
Right, nothing.
But as John, when he's ready, said, "You know what,
I want to work with Dan."
And bam, they just go to the top.
There is no funnel, there's no, "Hey, John,
why don't you just buy a $100 course from me first?"
Or a $500 thing.
- [Johnny] (faint speaking)
- Yeah.
- [Johnny] (faint speaking)
- Yes.
- [Johnny] (faint speaking)
- That's it.
That's what I'm talking about.
That's my model, it's free, free, free, massive value,
free.
All you can eat as long as you want.
But I know when you're ready to go to next level,
I just do this.
So there's no step, step.
No, it's free, and you go to the top.
I only have two programs: 18k for (mumbles)
or 100k working one on one.
That's it, I have two things.
I don't have a $500,000 thing, I don't have
a $300,000 thing, not even a $10,000 thing.
That's all I have.
It keeps my life very simple.
Does that make sense?
Yes.
- [Man] (faint speaking)
- No, this is not trial.
This is a - even it's gate keeping,
this is relationship building, but automatic.
I'm not like, during that two years of time,
I'm not on the phone with John,
"Hey, how are you doing?"
No, John takes his time.
Observe, he even told me, "I studied you guys, right?
I observe what you do, how you do it.
Does it make sense?
Does your value align with mine?"
Right?
And when he makes a decision, you know what,
this is what I want to do.
And that's it.
That's it.
That's the difference.
So my model, I don't have any of that shit.
And that's why I feel kind of bad on my - yes.
- [Man] (faint speaking)
- Does it take the same time with both models?
No.
Because I'm not emailing the list 10 times a fucking
a day.
I'm not doing the - I don't even blog.
I don't do a lot of stuff that all -
like even my internet marketing friends do.
I don't have 28 Facebook ads running.
I don't have nine funnel ads running.
I don't even have a funnel.
I barely email my list.
There's this event coming up, I'll email you two times.
Go to my website, I don't have an email list.
I break almost all the rules in marketing.
Yet I make more money in terms of -
like he makes 10k more, but you know,
more money than most.
Does that make sense?
That's what I'm talking about.