The Game with Alex Hormozi - HACKS You Should Know About Selling Remote Fitness | Ep 196

Episode Date: April 10, 2020

"The thing that separates good salespeople from bad salespeople is how they say the words." Today, Alex (@AlexHormozi) shares tips and tricks for increasing sales in the remote fitness industry, including scheduling tactics and negotiating price points. He emphasizes the importance of tonality and energy management in sales, and suggests the use of assumed close offers to increase sales volume.Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.Timestamps:(0:38) - Daily call with gym lords to move faster(1:08) - Schedule 15 min increment on thank you page(2:20) - Practice reps with right words and tonality(3:30) - Manage energy on 10-15 daily calls(5:02) - Ethically charge different amounts with bullets in holster(8:48) - Offer $500 value for free with membershipFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

The words are the easy part. The thing that separates good salespeople from bad salespeople is how they say the words. Welcome to the Jim Secrets podcast where you talk about how to get more customers, how to make more per customer and how to keep them longer. And the many failures and lessons that we have learned along the way. I hope you enjoy and subscribe. What's going to everyone? This podcast slash video is going to be more tactical in nature about selling stuff. And so we are privy at Jim launch to a wealth of data.

And so I know as an independent operator, especially if you're not in the community, you can operate on your own. You're like, what's going on, what's happening? And so we can rapidly test things. And so one of the beautiful things is now I take a call with every one of our gym boards every day. So it's a daily call that I do with all of our gyms. I can account for things quickly. We can test new things out. I can find out the next day and we can move much faster as a community.

And so in the last 14 days, we've been able to triple the average upfront revenue per show up or pick up on a phone call. which is pretty big. And so we're continuing to just test out offers, price points, et cetera. And so I figured I would give you some of the findings that we have kind of discovered through that process. First one is not about sales at all, but about scheduling. So make sure that you are putting your scheduling or scheduler, whatever you have on your thank you page where people should be opting into book a time with you as a 15-minute

increment between the actual appointment. So if you're, let's say, available from 4 o'clock to 7 o'clock, Instead of saying 4, 435, it should say 4, 4, 430, 445, 5, 5, 15, et cetera. And so by doing that, you'll get a higher schedule rate and you'll get a higher percentage to be able to show. And I think there's a variety of reasons for that. And I think that's mostly because, well, actually, I'll give you a couple reasons why I think that is.

And I have no idea. So this is just my theories. I think, one, when you see 15-minute increments, it looks like it's more, it's not as big of a time commitment. So people are more willing to do it. It's number one. Number two, I think when you see more time slots available, you just feel like you should be able to find a time that works best for you.

Three, sometimes people have pockets of time that they're willing to give up between things, whereas if it's the bigger the blocks of time, the less able they are to pinpoint free moments in their life. All right. And I'm sure there's other reasons too, but those are the top ones that I've got. So that was number one. Hacks that you should know about selling remote fitness or selling over the phone. Second, once you get the words right, once you get the script right, it's going to take practice.

It's going to take reps. And so what we're seeing at gym lunch is once people cross that 20 sale threshold or 20, 20 at bats, so 20 pickups on the phone, their close rate is really going up. Now it's not going from like 19 to 20. All of a sudden on their 20th call, they like learn magic. It's just the fact that a lot of you or a lot of us fitness professionals in general haven't sold over the phone, right? You sold a lot of times in person. And it took you time to get good. You might have been doing this for five years and never had to sell over the phone, right?

And so just imagine you're starting, you still have the skill of sales. You just need to learn how to do it in a new environment. The good news is that if you have the right words, it doesn't take that long. And the piece that you need to learn is tonality. If you've heard Jordan Belford, the Wolf of Wall Street, straightline sales. The words are the easy part. The thing that separates good salespeople from bad salespeople is how they say the words. Right?

Two people can read a script or give a presentation and their tonality and how they enunciate things and how they raise their voice at certain times. So fair? Fair enough? Right? Rather than, does that sound fair? it sounds and it sounds jockey like no one would say that plenty of people talk like that especially if it's their third or fourth or fifth call it's hard for them to do that the next piece

on the phone is energy management especially you know the guys who are doing or work with us they're getting you know 10 15 calls a day that they're that they're attending and so you have to make call 14 just as fresh is call number two and so managing your your energy and your state during that process is going to ultimately make you more money now in terms of price points and offers and things like that what we're seeing right now is we're telling people start with one and we're doing AB offers. So that means that we're closing $200 tickets or rolling them into continuity.

And right now we're seeing the majority of people actually willing to roll into continuity rather than pay the upfront fee. Now that being said, there's obviously guys who are just savages and they close and they did a really good job with it. But we're seeing people are more able or more easily able to get right into continuity.

The beautiful thing about that is that, I mean, think about it. You're closing one or two people a day, straight into continuity. By the end of the month, you've got 45, 60 people who are signed up into continuity at $200 a month for a remote for 100% margin business, right? Like, not 100%, 80% gross margins because you're probably going to pay a trainer 20% to do the fulfillment. But like, big picture, not that bad, right? So when you're getting on the phone, having two offers and that way you make it an assume close makes it much easier for a prospect because it's not

like yes or no, it's which one do you prefer, right? Which one's right for you? And that allows you and even less skilled salespeople to close at a higher percentage. All right. So especially if this is your first time doing it, it's a great way to kind of lead into the sale because it also gives you down sales. Next thing is you have to have bullets in the holster. So for you to ethically be able to charge a different amount, like let's say someone says, you know what, I can't do $49 a week, but I would do it for $39 a week.

You have to ask yourself, would you be willing to take on a member for $169 a month, right, for remote services? If the answer to that question is still yes, right, which for many of you probably is, you need to be able to have an ethical difference between what you sold at 49 and 309. So let me give you a couple of the ones that I like. All right, number one, and you don't have to use all of these, you can use some of these, you can use whichever ones you want. But if you're going to peel things back, you don't really want to peel services back because you want them to have a good

experience, right? And we know that reaching out to them on a daily basis to check you know that make sure they're doing okay is going to be a really high value thing. Now you don't want to take that away because then they're not going to stay, right? it's important for you to keep a lifetime value. And so here's a couple other variables. Number one, you can remove a commitment. So instead of saying, hey, you know, it's $49 a week to stay with us at our gym, instead of it being $49 a week, just period, it's $49 a week for 12 weeks.

All right. So they're making some commitment in order to get that discount off the 99 a week, which is what you should be selling your remote services generally for, which is what we've been selling our remote services in the gymlar community since, you know, for the last nine months, that's what it's been. All right. So if you're going to give them that half off deal, you can do it for a, commitment so you can remove the commitment if you want to that's one one bullet in the

holster second bullet you can use is like all right um instead of 49 i'll let you do it for 39 but you got to leave me a testimony at the end right so boom so now now they're doing something for you so you're not taking away anything but they have more hoops to jump through all right next one below that might be okay not only jiff leave me a testimony you got to bring me a friend all right now whether or not you enforce that is going to be up to you but this way it gives you another ethical reason to listen i'll drop you down to 29 you got to bring a friend because that way it at least gets me to my half off price, right? Fair enough.

Hey, Mosin, a nation, quick break just to let you know that we've been starting to post on LinkedIn and want to connect with you. All right, so send me a connection request and note letting me know that you listen to the show and I will accept it. There's anyone you think that we should be connected with, tag them in one of my or layless posts, and I will give you all the love in the world. All right, so let's get back to the show. Right, and when you say these things and when you make these, the kind of negotiations, which are essentially with this becomes closing a deal.

it's it's push and pool and if they feel like you are giving them a price and and then asking for something in return is that's unfair when you say that enough times people stop to sound unreasonable if they keep saying no right and so you should use that to your advantage when you're trying to close sales over the phone and having these these things in your holster so the three easy ones that I just mentioned one is you can waive the commitment second is you can ask them for a testimonial so it's an easy way to peel back the price the third ways you can tell them that they just got to give you a friend you know within the first four weeks or something like that all right and so there's those are three easy ones that you can use right away to to help ethically negotiate a lower price if you need to

uh to close to sale all right so um there's a ton of data that we are getting on a regular basis right now as a community we're going up by about five dollars per pickup uh which doesn't sound like much but by a percentage base it's about 10% a day which is huge if you know how percentages work um and so uh it's these tiny little things that we're figuring out now the guys who have been selling the most successfully have gone from one ninety nine to two ninety nine and I want to take a brief moment to talk about that because if you can have the if you have an AB offer right you're saying this is this is something that we call the green play in our world for a while but just it's an assumed close right and in the

book that I've coming out called building a better mousetrap it's I have probably three different ways of making offers and monetizing off of different front ends and one of them is called a free bribe okay and free bribe offers very simple you say hey I've got this amazing program that we sell for five hundred dollars right and so you can either get that program and all that stuff for five hundred dollars or you can just become a member today and get that whole five hundred dollar value for free just making a member and so that allows you to position a really valuable thing to get someone into continuity all right

and so depending on your objectives or whether you want to get more cash upfront or you want to get more continuity the way that you juxtaposed this two prices so that you that you interplay those two is important all right so if I wanted to get 90% of people to take me on my continuity offer because that was my objective, then what I would do is I would make that that A offer, that first offer, $500,000 for that first offer. Now, one and 10 people might say, you know what, that's what I want. And it's like, cool. The nice thing though is that if you, the higher up you make that offer, one, the people who do take it pay you a lot of money.

But more importantly, you have a nice price anchor because when you present option B, option B will be way cheaper because it's me, continuity play right and when you go there you'll get more most people will automatically do that and they will value option B at the same value that you had option A and they feel like they're getting a great deal because right now we're in recessionary spending right and so everything's about deals and bargains so you need to position your offers in such way that people feel like they're getting a deal in order to buy right and so flip side if I wanted to get more cash up front then I might make the two prices equivalent right and so it's

like it's either 49 a week for you know which would be $200 for the first month or it's $200 right now and there's no continuity right and so most people be like well I'll just pay the 200 and so this is how you can play back and forth and based on your objectives you can cater it so like if you're more cash strapped then you're going to probably want more cash flow if you are cash strapped or dollar you're going to try to push everything in continuity or like many gyms they sell between 200 or 300 or 300 or that offer. Now, you may be like, that sounds low. The big thing here is volume, right? Like, I believe me, I love high ticket. I'm a high ticket guy. I love it. The thing is, is like,

we got to confront realities that we're in a different selling environment. And these people are cold traffic and you haven't been positioned at all in your marketplace. And so, our guys are able to sell 200 and 300 on the first phone call, one call close, comfortably. And so the thing is, is like, because leads are so cheap right now and Allen's working the shit out of the leads, like we're getting a ton of people. We're getting a ton of people on the phone. And so like most of the gyms have six pickups, 10 pickups. I mean, imagine every single day at your gym having six to 10 people walk in the door. It's the same thing just in a virtual selling environment. Everything else is the same. All the rules apply. And so if you can

just close two or three of those people a day in a continuity, it's enormous for what you're going to be able to build. And what's interesting is if you look at this over like a 90 day period, which I think is what we're going to be looking at going forward. I mean, how long minimum, how long we're going to be affected by this is gyms because we're one of the first ones to shut down, which would be one of the last ones to be one of the last ones to be. gone by operationalized in 90 days you can build a whole business I'm Jim's launch on 90 day timetable so if you if you look at Orange Theory which is one of the most successful launching a franchise they have an amazing launch system

they do a three month launch and they require their franchisees to have at least 250 sign-up members before they open if they do not have that they cannot open right and so for you if you think about this in your own head and think I got 90 days to get 250 people sign up for my remote program you may get there 90 days from now and think, huh, I've got 250 people paying me $200 a month. Maybe I'll just keep this business. And I think some interesting conversations

that are going to happen down the road. But anyways, I wanted to give you some of those hacks that you should know about selling remote fitness. There's a million more things that we've kind of discovered because we have the beauty of having lots and lots and lots of data and lots of gyms that are testing things actively for us. We tried half-off offers, didn't work, didn't generate the lead flow.

mostly for right now is going to be around free offers and that's because that's the environment that we're selling in right now now that being said just because someone signs up for a free offer does not mean that you don't have every right to upsell them into a higher value service right so upon more education they might find out that they actually would like to pay for this other thing that's a far more irresistible offer that will that will get them their goals right because that's what they want they signed up because they want to lose away they didn't sign up because they like signing our for stuff, right?

And so as long as you remember that, that it is okay to sell stuff, even if you marketed something is free, as long as you have a free offer that you marketed, if you present a superior offer that will get them their goals better and give higher service and get them there faster and guarantee it or whatever,

then the likelihood that they take it is higher. And it allows you to get far lower cost of acquisition, far lower lead cost, far higher volume, and ultimately help more people and make money during the process and come out of this thing on top. So anyways, I hope you enjoy it, of those hacks that you should know about someone remote fitness.

I will make more of them as they come up. Keep you amazing and lots of love to everybody. Sorry with the green screen. I'm doing some recordings over the next few days. And so yeah, great screen. All right, catch you soon. Bye.