- These are the seven key areas you need to master
in order to have a successful business.
- [Voiceover] 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.
- The very first step is what I call attraction.
What is it called?
- [Audience Members] Attraction.
- It means attracting clients, attracting customers.
What do you do?
Now notice, I didn't chase customers.
I didn't say cold-call customers, right?
Yes, Ethan. - [Ethan] Build a sales model.
- Yeah, some kind of a system,
a marketing system that attracts your ideal clients.
Attraction.
If as a business owner, as an entrepreneur
I always say if you don't have a predictable consistent way
of attracting clients, you don't have a business
you have an expensive hobby.
If you don't have a way that you can buy customers,
you know exactly your acquisition cost per a customer.
You don't have a way to do that
you don't have a business, you have a hobby
because you're relying on hope.
You're relying on the phone hopefully it might ring,
and it might ring this month,
it might ring six months from now.
That's not a business, that's not how you grow a business.
So attraction.
Second thing is retention.
It's good to get those customers,
but what's the point of getting those customers
if you can't keep them?
Does that make sense?
Keeping those customers, retaining those customers.
Client retention, second step.
Third step is client optimization.
Meaning you're maximizing, optimizing the value
of each customer that comes in through your door.
For example, a customer comes in,
typically they spend $1,000 with you a year, let's say.
If you can optimize the value and instead of spending $1,000
and they're spending $1,500 with you,
you're optimizing the value of the client.
There are only three ways to grow a business.
How many ways?
- [Audience Members] Three. - Three.
Increase the number of customers that you get.
Increase the frequency of each purchase.
Increase the transaction size.
That's it.
There are only three ways, it's not that complex.
Increase the number of clients.
Increase the frequency.
Increase the transaction size.
Increase the frequency,
if they buy from you two times a year.
Can they do three times a year?
Can they do four times a year?
If they're spending 1,000 can they spend 1,500?
Can they spend 2,000?
Then it's systematization and that's what
we're going to talk about today.
I've always talked about attraction, retention, optimization
but today we're going to focus on systematization.
Now notice, I didn't put systematization as the first step,
it's the fourth step.
Why is that?
Ethan.
- [Ethan] You need something to systemize.
- You need something to systemize.
And the last thing you want is to systemize
stuff that doesn't work.
Could you have a system that actually doesn't work?
Yeah, we could. We could.
You're doing this, "I don't know, let's just systemize it."
Well, what system is designed to do is to design
to create a predictable result.
If you have a lousy result, you systemize it
what are you going to get?
Yeah, you're going to get lousy results predictably.
That's not what you want.
So systematization.
Then once you systemize it, then you can delegate it.
That's when you're building a team.
Getting out of that technician role and say,
"You know, I'm going to build a team."
Now, the challenge here is
if you try to delegate without system
what's going to happen?
[Audience Member] Chaos.
- Chaos.
[Audience Member] You lose lots of money.
- You lose a lot of money, yes.
What's going to happen?
- [Audience Member] Inconsistent.
- Inconsistent.
And that's why entrepreneurs sometimes complain,
"How come they don't care like I do?
"How come they don't do things my way?
"How come they can't think like me?"
Well, here's the thing, if they think like you
they won't be working for you.
Let's face it.
So that doesn't work.
If you don't have a system for them to follow
and you hire someone, you're depending
on their personality to perform.
Let me say this, people are very hard to manage.
How many agree with that?
People are, it's a bitch to try to manage them.
Don't manage them, manage your system
and have your people run the system.
Have them run the system.
That's why I challenge you, go to McDonald's
and say, "Hey, you know what?
"Where's your owner?"
"She ain't here."
"What do you mean?"
"She is not here."
"You mean she's not flipping the burgers?"
"No."
"She's not at the cash register?"
"No. No."
"She's not mopping the floor?"
"No." "Where is she?"
"I don't know."
Why does the McDonald franchise cost a million bucks?
Does the burger taste so good?
How many like McDonald's?
Good, a couple of people.
What's wrong with you?
(audience laughs)
What's wrong with you, man?
Now, I do like the fries, the fries are good, I love those.
But I mean, come on man, the burger.
Okay, how many of you can think of a place
that can make a better hamburger than McDonald's?
Yes.
Now how many of them make more money than McDonald's?
So it's not because their product is so superior,
but they do have a superior system.
They can take a college kid, they can take high school kids.
And they have high school kids, retired citizens,
baby boomers, running a multi-million dollar operation.
Because they systemized it to that degree
and that's why it's a money machine,
that's why it costs that much money.
Most other franchises, you're buying a fucking job.
As a franchise I'm going to buy,
I want to buy a money machine.
I don't want to buy a job.
I don't want to be working in there.
I have a friend of mine who ...
Well, I won't name names,
but it's another sandwich franchise.
Another sandwich franchise.
More like a healthy type stuff and ...
(audience laughs)
And struggling.
He's in there working five, six days a week,
long hours and cooking the stuff and doing,
and he couldn't get out.
I asked him, "Why did you buy that franchise?"
"Well, because it's cheap."
(audience laughs)
I said, "Show me your financials?"
I looked at the financials, he wants my feedback.
I said, "You're making less than minimum wage.
"You're making less than minimum wage.
"You're working way longer hours.
"You've put in all this investment.
"You just bought yourself a job."
That's the challenge most businesses owners,
they don't have a business, they have a job.
They have a job.
You could say, "Oh, I have control.
"I have this, I have that."
Well, but you have a job.
It's not a business.
The first step, we have to look at that
and that's look at it as it is
and say, "You know what, how can we solve this?"
Then the next step is automation.
Once you've delegated, now you can automate it.
That means having technology,
using tools to automate your process.
Automate your process.
Once you have that then you can expand.
You can open up a second location,
you can hire more people.
There's so many duplicator, you can do so many things.
Let's say in internet marketing business.
Once I figure out how I can generate quality leads,
once I know how to convert those leads,
once I automize the value of my client,
once I systemize it, it's like a funnel that works.
Then I can delegate to my team so they can scale my business
and automate using technology.
No different when running a business, it's the same.
You follow this.
Let me show you ...
Actually, you know what, forget it.
Let me show you a clip I was in ...
To give it a little bit of context.
I was in Japan for about three weeks,
I was away basically for five weeks
and I just came back just beginning of November.
This is a little video, it's a three-minute video.
It's just for fun., can I show ...
Can we do some fun stuff? - [Audience Member] Yes.
- Just a fun vlog, a video that I made on the trip,
so check it out.
(travel documentary video)
Marvelous!
(audience claps)
When I first came back I was like, "Where's everybody?"
Because it was so packed in Japan and you walk like,
you know people like that, right.
You don't have to walk,
because people will push you, literally.
Like you're just, "What's going on?"
You just have so many people.
In the subway they actually have
these people called professional pusher.
They push you into the train.
I'm like, "I can't get in."
They just, they push you in and by the time you get in,
your face is like on the mirror right there, right.
I was like, "Holly shit!"
I'll tell you a quick story, it's kind of funny.
In Japan they have these hot springs.
You know hot springs?
Like Carson Hot Springs, right.
Hot spring and you're in a ...
They have male and female and with a beautiful scene.
It could be in front of a lake
and you have your own hot tub thing.
In Japan, when you go into your hot spring,
it's actually very impolite if you wear
swimming suits and trunks and stuff like that,
it's all naked, like all naked.
I'm not used to that, right.
I showed up and we went to this hot spring.
It's a bunch of seniors, right, you got to imagine.
I'm like, "I'm not very comfortable with this,"
but you're just not supposed to wear anything.
They have this like a towel that's about this size.
(audience laughs)
I'm like, I'm trying to be cool.
I cover myself and then I was just trying to look cool
and sitting in a hot tub and like (sighs).
And then you see these elderly people
just walking around in front of me like that.
"That's not very pleasant."
(audience laughs)
"That is not what I signed up for, right.
"It's unbelievable."
And my friends, because I went with a couple of my friends
it's the first time we see each other naked, like guys.
Guys, have you ever seen like
when you go to swimming with friends,
you try to hide and stuff, it's really weird?
Because you're trying to carry a conversation
without looking, right.
(audience laughs)
You're just trying to look at the face,
"Yeah, hey man, it's cool.
"It's cool. What's going on?"
You try to, you want to look and you don't want to look
and you're like, "Yeah, yeah."
I saw two guys who were talking like this,
"Hey man, yeah, it's nice here."
"It's nice, right?"
And, (laughs) and after a while
the first 10 minutes I was like,
"No, this is not very comfortable,
"because I'm in a bunch of old people, naked."
I'm like, "This is not so good."
But somehow it's very liberating, there's a feel to it.
Then I went up to the top floor which is on a balcony.
A top floor and you can see the city,
and you're in a hot spring.
I'm like, "Oh, fuck it!
"I'm just going to walk around naked and doing my stuff."
My friends in the hot tub would see me
walking around like that.
Then I'm like, "Ah, shit!
"I'm going to do some yoga."
(laughter)
Just imagine.
Me naked, I'm doing sun salutation
and my friends are like, "Dude! That's way too much."
And from then on they don't go to hot spring with me
I'll go by myself.
That's the end of that story.
What's interesting, why I showed that video is when I ...
I was away for five weeks, right.
When I came back I sat down with my bookkeeper
and I wanted to review some numbers,
what's happening with my companies and the revenue.
The five weeks that I was away total revenue
among all my companies actually went up when I was away.
Isn't that interesting?
Total revenue actually went up when I was away,
when I was not here in the five weeks.
Now, although when I was away because I was on vacation,
there were some projects that I wanted to complete
that wasn't done, yes, because I wasn't driving it.
There's things that wasn't being done.
When I got home, we worked on those
and a lot of stuff got done, but total revenue was up.
The reason for that is because
within my companies I have what?
Systems in place, so it's less people dependent
but more system dependent and there's a lesson there.
The question you have to ask yourself,
do you have a job or do you have a business?
Can you walk away?
Write this down.
Can you walk away from your business for five weeks
and come back and find it more profitable?
That's the test.
Can you walk away from your business and come back
and find it more profitable, or maintain the same revenue.
If the answer yes, it means you have systems in place.
If the answer is no,
it means you don't have systems in place.
It's a very, very simple test.
Very, very simple test.
You've been watching my videos for some time now
and you might be wondering,
"Then how do I go to the next level?"
or "How could I be mentored by you?"
Here's what I want you to do.
My very first assignment to see if you qualify.
I want you to go to fumoney.com
to download a copy of my book.
You can't even do that, I cannot be your mentor.
The second step is, after you download my book
I want you to read it and you also get invitation
to register for one of my upcoming webinars.
I want you to register and show up for that webinar.
During the webinar I go through all the details
of how you can possibly be mentored by me.
Go there right now, fumoney.com