The Game with Alex Hormozi - How to Drive Revenue Online | Ep 214

Episode Date: June 19, 2020

Panic is just an expression of pain. Today, Alex (@AlexHormozi) talks about what it takes to grow your online business during COVID, accountability, why we should not let go of our sales and marketing teams, earn revenue while changing your value proposition, and why there really is no shortcut to the skill of selling (as heard on "Fitness Founders Podcast").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:(1:49) - Mindset for business owners, profitability, and team payments(6:11) - Advantages of small business owners, starting fresh, and accountability(15:38) - Importance of continuous sales and marketing during COVID(18:11) - Alex's playbook, changing value proposition, and the Prosperity Doctrine(23:52) - Learning to sell over the phone, no shortcuts to this skill(27:22) - Alex's predictions for the fitness industry in the next 6 monthsFollow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

The vast majority of people hate change more than they hate losing and would rather just lose. 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. We're in a place right now where remote is selling like hotcakes. And the vast majority of people hate change more than they hate losing and would rather just lose. because they were so burned out of being gym owners that this gave them a perfectly acceptable acceptance of views.

They could look at their parents, they could look at their wife, and they're like, you know, I tried my hardest. And everyone's going to say, you're right, who is going to guess Corona was going to happen?

It's not on you. And so if you want to quit, this is the absolute best opportunity to quit. But if you're not that person and you want to win, this is how you do it. And you can do it now because the people who actually execute right now,

lead costs are 50% off right now because no one's marketing, especially other gyms in your area. How's it going, everyone, and welcome to the fitness founders podcast. I'm Kevin Manion VP marketing here at Glowfox. This week we talked to the great Alex Hermosey, author of Jim Launch Secrets. Alex talks about how to make your online business a revenue driving machine, creating value in accountability for your members,

and the key to mastering sales over the phone. It's a master class, so let's get started. Alex Hermosey, welcome to the show. Thanks for having me. Appreciate it. Yeah, so you're pumping out, content yourself and I really want to give you a platform for our listeners to get some key takeaways now the world has changed and how they can adapt to that. There'll be businesses out there that are ahead of this and they're doing really well and there's other ones that are

probably paralyzed by fear and uncertainty. I'd really like to start there at the start and maybe tell us a little bit around the mindset people need to have now that the sky's fallen in, how should they be thinking about their businesses? I'll say two kind of, I would say major points. First one is whenever there's panic, panic is just an expression of pain, just larger pain within a marketplace, right? That's what panic is. And so whenever there's lots of pain, it means there's always lots of problems and problems means opportunities to be solved. And so when there's always panic, it means that you can make lots of profit if you are able to realign your services with what people want now. And so if you're no longer able to fulfill in the way you are accustomed to,

the problem will still exist. Weight loss hasn't changed, right? People still want to be healthy. It's just can you pivot the way you provide the services into a different channel? And most of us already have the skill set to provide, you know, nutrition coaching, accountability, et cetera. And if you can make the pivot, then you can actually meet an outsized demand where there's less supply of it. And so if you've looked at over the last 30 days, online training, depending on the source, what you're looking at is grown between 5x and 9x just within the last 30 days.

And that's because the vast majority of the population, general population, is still behind the curve in terms of understanding online. I mean, many people had never been on a Zoom call. until like this month. And so it gives us an opportunity as gym owners to kind of pivot our clientele and the marketplace that we're in local or even beyond that into a higher profit model,

which is one of the opportunities that exists because online training and remote training has far higher margins than in-person brick and mortar service. Yeah, I think that's really interesting. And we'll just kind of really dig, dig in there a little bit deeper, taking the idea of in the future being potentially a more profitable business model, if we start with, say, operations and then maybe retention,

what are some people that you're working with doing to cut back on what they're spending and retain the people that are already paying them? Yep. So first thing is that any business, when they're in a constrained environment, have to focus on revenue-generating activities. And so every employee, and remember, if you've changed your model,

you can never have the mindset of I have to create work for someone. You have to create a business model, And then people either fit in that model, they don't. And so right now, if you're in a remote setting, people are either retaining your existing customers or they are generating revenue from new clients from sales. That's all there is. Honestly, a remote gym setting is actually a more operationally simple model

than an in-person model. The difficulties in online acquisition. But if you crack the acquisition part, then you actually have a very, very, very sound model because the compensation structure for remote, the way that we, you know, promote it within our community, is an 80 to 20 split. So the coaches will get 20% of the recurring revenue from the members that they're maintaining. And 80% goes to the business. And so the difference is that if you are fulfilling online, then you don't have the rent, you don't necessarily have the front desk girl, you don't have the

cleaning, you don't have the toilet paper, you don't have the variety of things that come along with that. And so you can actually run a very high gross margin business, a higher gross margin business. So that $200 a month you used to get in person, you may only collect 12.5% which is the industry average in terms of profit. But instead of that, go to a much higher 50, maybe 60, 70% margin in terms of what you actually can take home after the smaller costs that are associated with software, etc. Yeah. And I think there's like obviously lots of immediate things you can do to cut the money that's going out of the business. But some people I think are still struggling with how do they keep people paying them.

Just at the very basic side, 50 people paying me 100 bucks a month. And they were coming in and things were fine. And now I don't know, should I put them all on pause or what should I do? Yeah. Now, I'm not a lawyer and these laws differ by country and state,

but my recommendation to our community has been, don't pause people. You just have to shift what you are fulfilling. And so ultimately you said you were going to help these people lose weight and that promise has not changed. You're still delivering the services in a different manner. And so the primary thing, and this is what everyone who's in the fitness space has to understand, is that you're not going to beat beach body at online workouts.

Not in seven days on your budget. It's not going to have. You're not going to be precision nutrition on nutrition, right? You're not going to beat them on like the quality of your nutrition plans. And so what are the competitive advantages that a small business owner has in a local or super local marketplace? It's accountability. All right. It's service.

what we do is not selling Zoom workouts. You can have them so that you can fulfill on it. At gym launch, we provide 16 hours a day of one hour workouts that we do for our community. So we decided to centralize that for us so that all of our gyms could even cut more things off their plate. And so that if you were to simplify the business model, you have sales, sorry, you have marketing, so lead generation. You have lead nurture, which we automate. And then you have your sales appointments. Beyond the sales appointment, the only thing that's happening in the fulfillment is just one.

one-on-one reach-outs, one-on-one reach-out. So it's accountability. The primary value that the fitness professionals providing in a remote setting is the gap between what people think they should be doing and what they are actually doing. Everyone knows they need to stop eating. Am I allowed to pass on this?

Yeah, you can say what you want. Okay, cool. It's like people know they need to stop eating shit and move. Right? They all know that. And they can Google nutrition plant. They can Google free online workout. So you're not going to differentiate or provide value in excess in that way.

What you are going to be able to provide value is getting them to do the thing that they are not doing. People pay for you to pay attention. You need to shift your mindset from I was in person and now I'm remote to I was doing group training and now I am one-on-one. And if you can make that pivot in your own mind that, oh my gosh, I'm giving personal training

essentially personal coaching for dramatically less than what I would provide one-on-one coaching for in an in-person setting, then you can start seeing where the value discrepancy, create something that someone would want to pay the same amount that they pay for their gym membership in a boutique setting for, you know, $150, $200 a month. I think what you're saying at a high level is there's a lot of people that may be still trying to figure out how to get the Zoom, the Zoom workouts perfected.

And they may be even afraid to get them started, but they're maybe missing a trick in starting from first criminals here and thinking, you know, why were people paying me to $150 in the first place. And maybe the workout is obviously going to be a big part of it, but maybe the workout isn't the most important thing that I can offer while I'm remote. I would even make the argument that it was never the most important thing that they offered. It's just most people don't know that, even the people who are in the business, right? If they wanted group workouts, you can go to the YMCA or big Glovo Gym and they have group workouts on the hour, every hour in large groups for probably one-tenth of what you're charging. So it's never been the workouts, right? It's been the service

in the community, but you can't sell community, right? You sell the result when someone walks in the door, but they stay because of the relationship that they have with you, the coaches, and the other people who they work out with. Right. And so all we're doing is fast-tracking and being deliberate about our actions to intentionally create that relationship and make sure that the communication cadence that we have operationally matches maintaining that relationship and then growing it so that the bond there still feels even more intimate than it was in the in-person setting. So I think the first thing people to do is primarily going to be weight loss, but thinking, you know, why were people coming to me in the first place? And then really thinking, how can I create that accountability? How can I to a certain degree keep that community aspect going as well? And just as I suppose to recap for everyone like what are people doing to keep that accountability going? It's a communication cycle. So what we recommend is that you have to have some things that are expected of the client and some things that are expected of the coach. And the coach is,

to make sure that the things the clients are supposed to do are actually getting done. And so fundamentally, you want the client to have to do as little as possible, because if you have them have to fill out a 17 questionnaire, four months a week, the likely that they do is very low. They are not us. They actually don't care about things. And so it has to be as minimally invasive as possible. I would even go so far as to say, you don't even need the special apps and like,

like you don't need to worry about that stuff because you can just text people. Like, you don't have to be fancy with this. because that's the vehicle that the customer is most accustomed to communicating with. And so all you have to do is be structured on the back end so that you know that what they're required to do is text you every day, their morning weight and the supplements that they were supposed to be taking. And then boom, by the way, tie in some supplement revenue into your business because right now supplements are up 30% as a category. People want to buy products. Have them to do that. They're doing it anyways. They might as well do it for you,

especially from a recommendation from an authority. So have them send their weight. And the reason you want to do it daily is for a couple reasons. One is it keeps them honest, right? Because if they only weigh in weekly, one, you have massive variability from week to week from way out to way into weight. Because if they weigh in the morning or the afternoon or they drank a glass of water, that can be super varied. But if they always do it the first thing in the morning, you know, after they pee,

it's going to even out and you actually have way better data. That's number one. But from a psychological standpoint, they know that if they're looking at the big sleeve of Oreos when they're hungry at night and they know they have to weigh in the next morning, even though calories and fat loss don't work that way, they are, as a general population, going to not do it or be less likely to eat the whole sleeve, maybe we'll eat one or two,

knowing that they can't get away with it because their coach is going to see their weight in the morning. Now, for you as the coach, because that's what they're required to do, all you need to do is acknowledge that you received it on two of the days of the week. And then the other three days the week, you want to be proactive in your reach out to them

and ask a specifically catered question. Now, what are the three aspects that we want to look at with a client? Typically, you're going to be looking at their fitness. So you're going to say, hey, how did we do this last week on our workouts? And remember, workouts as defined in a remote setting is movement. If you really want to have long-term, sustainable, like health, like weight loss interventions, getting someone to walk for 30 minutes away is probably better than them over a four-year time than anything else.

So don't be a purist about this. It's just getting them to move. So asking whether they actually did the thing they committed to. That's number one. The second time you'll reach out that week, maybe it's Wednesday, it doesn't matter. We have our clients separate out the clients Monday, Wednesday, Friday, and Tuesday, Thursday, Thursday, Thursday. That way it decreases their reach-out load per day. Yep. The second reach-out is going to be about nutrition, right?

So it's going to be like, hey, how you doing with your food? Are you eating 10 bags of Oreos every day, you eat and finish off a bag of chips? Are we relatively staying to where we need to be? That's the second piece. The third, you know, reach-out is going to be about their energy, their headspace, their sleep, kind of how they're doing overall to make sure that they know that you're a human being and that you know that they're a human man. And so if you can,

now you don't want to ask the same question. Right, you've got to be a person. But if you ask the questions along those lines, that gives you very easy fodder to work off of to create an organic conversation that allows you to have a one-on relationship with the clients at scale. If we're to summarize this overall blueprint of, I suppose that's called keeping the business going,

we're talking. Cut back the costs where you can, you know, stem the tides of your pauses and cancellations and fill that in with obviously a certain amounts it's going to be online workouts, but you're going to have to dedicate time to keep that one-to-one, one-to-many relationships going

with the goal to keep people accountable, keep them engaged with you, and in the end of the day, that's going to be worth it for them because they're still going to stay on their same path for their fitness goals. So with trainers, so if you're looking at your staff, right,

you have a front desk person and you've got two trainers and you, if you were to allocate the way your time's going to go, you probably don't need the front desk person. I'm just giving you real, like, let's be real. Okay, you probably don't need that because there's no front desk, right?

They're not greeting it. So that's number one. Now, the trainers, they can do split shifts. They can do four workouts in the morning. The other person do four hours the afternoon. That works. They both should be, if you want to know relative client load for remote, it's about 75 clients.

It's about a full-time remote client for a coach. If they have 75 clients, it should take them about three hours a day to do all over their manual reachouts and responses. Beyond that, the remainder of their day should be on cold reach-outs. That means messaging people, making posts, responding people who comment or like, and asking them if they know anybody who'd be interested in not gaining the quarantine 15.

And so when they do that, they become revenue generators, not just revenue maintainers or preservers. And so they're actively maintaining revenue for you by keeping your assisting customers happy, delivering a higher level of service. And this is something that every gym owner has to really truly believe in their gut. So they don't feel like they're taking advantage of people. Like, you are providing a one-on-one solution where you did not have a one-on-one solution. before this and you're doing it at a fraction of what one-on-one coaching would typically cost. You need to make sure that from a maintaining of your gym membership, communication needs to stay

high. So if you're used to sending out a weekly email, you've got to be thinking about daily, not necessarily just emails, but texts, Facebook group posts, and you have to be more active on social media because everyone's on their right. Everyone's bored at home, cooped up, waiting for people to respond to their comments and threats, right? And so you're going to have to be more active with that. Now, as the gym owner, right, as the proprietor, your primary goal is revenue generation. That is what you need to be doing. Hey guys, love that you're listening to the podcast. If you ever want to have the video version of this, which usually has more effects, more visuals, more graphs, you know, drawn out stuff. Sometimes it can help hit the brain centers in

different ways. You can check on my YouTube channel. It's absolutely free. Go check that out if that's what you are into. And if not, keep enjoying the show. And so the last thing you want to do is stop sales and marketing for a variety of reasons. One, the moment you stop acquiring new customers is the moment, this is the moment you start the ticking time clock of when you're going to die, right? Because attrition's going to happen. No matter what, even when you're in person, attrition happens. But if you're not filling it back up, eventually your gym will die. And you don't know how long this is going to last.

So number one, you don't want to stop sales and marketing. Number two, we're in a place right now where remote is selling like hotcakes. And the vast majority of people hate change more than they hate losing and would rather just lose. Because they were so burned out of being gym owners. that this gave them a perfectly acceptable. Right? They could look at their parents. They could look at their wife and they're like, you know, I tried my hardest. And everyone's going to say, you're right.

Who is going to guess Corona was going to happen? It's not on you. And so if you want to quit, this is the absolute best opportunity to quit. But if you're not that person and you want to win, this is how you do it. And you can do it now because the people who actually execute right now, lead costs are 50% off right now because no one's marketing, especially other gyms in your area. We're talking the top 5% of gym.

owners are actually even marketing rate. And here's the good news. If you are the top 5%, guess what happens when half the gyms go out of business in 90 days, right? Because they only have 14 days of cash flow on hand. All those members get released back in the marketplace and then you swallow the whole thing back up. By the end of this, you can reopen your gym and then still have people who stay in a remote setting because believe it or not, there are a lot of people who actually like working out on their own convenience and not having to leave in go places. Right. It may actually work better for your customers, and that's okay because it's a higher margin service. And so what happens is you start to adapt what's called a hybrid gym model.

You have both remote services and you have in-person services. And so you have a dual revenue stream and the secondary revenue stream, the remote revenue stream is not geographically confined and is higher profit. That makes a lot of sense. I just want to move through the sections here. So I think summarizing on the retention, like it's actually a very good point that in the time it takes to do a 45 minutes one-on-one training session, but maybe do 45 reachouts or one-on-one communications and really think about time and how you're paying your trainers and what value you can get out of them when they're not flat out doing this. Moving in to the sales and marketing, a lot of businesses now probably are shutting down their

sales costs, shutting down their marketing costs, but getting into the mindset of actually growing and not just grow to grow, but grow to survive because there's definitely going to be some attrition. That's a really important point. But I think it kind of comes to the next question that I have, which is, you know, you would be very well known in the industry for constructing sales pitches, constructing offers. You know, we often associate you with high value, high price introductory offers, all this kind of stuff. What is the playbook now? Prosperity doctrine is grow, thrive, et cetera, like transform, all of that works in every type of normal economy. As soon as you're in a recessionary economy, the buying behavior flips, and it goes

through preservation. If you look at any of the African citizens we have right now, I'm not talking about filling your gym. I'm talking about saving and surviving, et cetera, because right now, surviving is what people believe is possible. And what's interesting is in a recessionary economy, the buying demand on survival is twice as high as the desire to buy for growth is during a normal economy, right? So the actual buying demand is four to one for preservation in a recessionary economy versus two to one for growth in a normal economy. So if you flip your language, you'll be able to convert more people. So that's number one. Number two, in terms of constructing the offer, you still absolutely should be selling, I would say, I'm going to put quotes around

this, higher ticket up front. Now, higher ticket in a recessionary economy right now, what we're seeing is $2.99 is a price point that's converting to coal traffic in a local market for remote services. And So we present a very simple AB offer for someone to do a 21 day or 28 day, it doesn't really matter, but a front-end challenge of some sort. And then with that, $2.99 or you can become a member today. Very simple. And the downsell for that is just simply starting them on a weekly billing cadence. So you start them at $49 a week or $39 bucks a week.

And that's very swallable for a lot of people. And it's a lower trust environment. So it allows you to gain their trust. you don't want to stop at the first sale. So what you were saying earlier about like choreographing sales experiences is definitely what we've been kind of known for is that there's three sales that should happen. This happens with whether you're in a recessionary economy or not.

You should always build the mouse trap so that you can maximize the value to provide and then also the value that you can get for the business. And so the first is going to be your service sale. This is a front end service sale. So that's what I just said, the $299 versus the down cell for $49, $39, $39,000, build weekly. The second sale is going to happen

24 to 48 hours later where you go through nutrition consultation. We use this as an onboarding experience to provide more value, walk them through, make sure they understand everything, who their coaches are, where the groups are, where they contact for billing, blah, blah, teaching them how to be a client, but also providing value in their nutrition, especially right now in quarantine,

people are going to want to know what they can do within their current environment. This is a point where you then also have a soft recommendation for supplements. For us, we average $200 per head in supplement sales, and most guys make a 40% commission on what they sell in supplements. You're talking $80 to $100 ahead in profit per person in additional within the first $24 to $48. Now, that alone can typically cover the cost of acquisition for a customer, which means your front-end service revenue was 100% gravy, right, is profit on top.

And then on top of that, so we've gotten the first two sales, the service sale and the nutrition sale. And the third sale should happen at day 14. So whether you're doing a 28 day, this will be halfway through. if you're doing 21 day, it'd be two weeks in. And so at this point, you should have gained a certain amount of trust. You should already had at least seven or eight exchanges with this person, one-on-one, keeping them on track, makes sure they're doing a good job. And at this point, you should be able to talk to them in a real way with true rapport,

and be able to talk about their long-term goals. And at that point, you can sell at the real price points that you're accustomed to selling to, even get prepaid $2,000-plus sales. Now, remember, this is my recommendation to you is continue to sell in the remote setting. You don't need to sell for when they come back because then you're still selling a disadvantage and you don't know what's going to happen. So continue to sell for the 101 remote experience

that this person has already enjoyed and has gotten results from. I get it. So listening to you there, I see how you've changed the value proposition. So I see how you've changed it from survival or avoiding going backwards rather than making massive games. But you're still talking big numbers

in terms of what you can earn in revenue. Before this, our guys were selling two to three thousand up front on the first visit. So this is, this is significantly less. So typically what we would do is a diagnostic selling process at the first visit, which is actually what that last sale that is described, where you're talking about the long term goal and then selling a package to the goal. Right. So it's like, hey, you know, if you want to lose 40 pounds, it's going to take us 20 weeks to get there. And then another maybe 10 to 15 weeks to maintain it, feed you back up to a higher calorie

intake so that we can maintain that lower body weight at a higher calorie intake. So you basically feed them back up. And so that's so that you can maintain. That total package might be, let's say, 30 or 40 weeks, right? And so when you sell 30 weeks at $999, you have a $3,000 package. You can say, hey, you can prepay today and save 20%. Now you're at $2,400. A person says, no, he says, cool, let's do half down. Let's do $1,200.

Can you do that? And then $1,000, you do $600, then spread it out. And so you keep working your way down. And the nice piece is that if you have a high pricing, by the time you get to $600 after saying $4,000 for the people who are less skilled, you'll able to get yeses. very, very frequently. And so if anyone who's listening to this is like, man, I can barely close a $99 membership,

it's because your value problem is wrong. Straight up, it's not because your market is weak. It's not because you lack the skill of closing high ticket. That's all it is. And you need to understand how to provide value to a person in that setting. So I think maybe to round off, for somebody who's in the situation where they're not used to selling over the phone,

and they've probably been running a business that people have been walking into and having a good experience and maybe they're struggling at the $99 price point, what's the fastest way they can figure out how to do this over the phone? There is no fast way of doing it. I mean, fast, yes, there is,

but there's no way of like homeworking your way through it. You can only watch trainings for so long. At a certain point, you need to dive in the water. You need to step in the ring and get punched in the face. You can watch all the UFC you want. It doesn't mean you can fight. You have to, and what we've seen is 25 to 30 exposure to a stressor, which is general stress theory, too. It's not just sales, right?

Gets people basically desensitized to the stress associated with a new selling environment. After 25 sales, what we've seen is our GM one, or 25 sales opportunities, RGM owners are able to convert the same numbers they were closing in person, right? It just basically takes 25 attempts of sucking to kind of figure out the flow of how the script works. I can give you the words to say right now, but it's not about the words. Words are 20% of it. 80% is how you say the words. It's the tonality and the frame you can control on the sale. And so I'm going to just give you two examples really quickly

because I think it would drive the point home. So if I said before we started the sale, so do you need to talk to your husband before we get going, you know, make any decisions? By asking that question, the way I just did, you're going to think I should say yes to this. Now, if I asked the same question and I said, you don't need to talk to your husband or anything before you get started.

you're going to think, no, I don't need to talk to my husband. I said the same words, more or less, right? But the tonality will dictate what the response is. And so you can get the words, but how you say the words matters more than the words themselves. I'm sure you've maybe you've heard the same example of like, what are you doing versus what are you doing versus what are you doing? All of those things are different meanings to the same sentence. And so learning how to inflect your voice,

I know this sounds silly, but in phone sales, you don't have the luxury of having your in-person body language, which allows people who are less skilled to be able to get away with shittier sales. And so selling in a new environment creates a more disciplined salesperson.

The fun note about this is that when you sell over the phone, it tends to be less tiring than in-person, which is one of the advantage. You can take a higher volume of sales per day over the phone without getting exhausted. I think they don't think we'll take away from that is the 25. Everyone has a list and really you just got to start working it. And

trial and error is probably the best way to actually get moving. But it's going to take a little bit of resilience to actually start doing it before you figure out the best path. It's like, what's the expectation? You know, you have a client who comes in and they watch some squat videos and then they come in and they try to squat and it doesn't look right. And they're like, ah, squatting's not for me. You know what I mean? Like, of course, of course you suck at phone sales. You've never done it before. Why would you think you'd be good? You think after 10, 10 attempts at something, you've only spent five hours trying to do a skill that you're going to be world class at a skill from guys who have 4,000 hours over the phone.

Sometimes on real estate expectations of acquiring a skill. That being said, it is 100% the skill you have to acquire in order to survive. So you just have to toughen up. Because you can't get new people without selling over the phone right now. So it's just like, what are you going to do? You just got to confront it. You just got to get hit in the face and just keep moving. That's a good point.

Okay, the last topic for a couple of minutes is about the future. So what do you see six months' time or whenever that is, when doors start to open again, what's a fitness business going to look like? How much this is going to be digital, how much is going to be in person? What's going to happen? Great question. I don't have the magic ball,

but if I were to be a betting person, which I guess I am because we're all in business. One, I think that this will fundamentally change the way that people consume fitness with technology. I think this will also fundamentally shift the way people purchase. The gym owners who learn how to sell over the phone will realize that selling over the phone is actually a more efficient way to sell. It is a more efficient way to sell. It's harder.

But once you learn the skill, you can actually convert a higher percentage of your leads, no matter why. Number two, there will be some people who are going to stay online. They realized they've never had, they got forced to overcome the hump of learning the new technology. But now that they're doing it, they're like, you know what? I like working out from home. This is actually more convenient for me, right? And convenience will always win. That being said, there's still going to be a big explosion of people.

who are crawling out of their skin wanting to go back to the gym. And there's going to be far fewer gyms that are alive when this opens up. So I think that the demand for fitness services in person will still outmatch the supply when this turns back on. I also don't think it's going to be as much of a boom as people expect because I think most countries are not going to turn their economies back on like a light switch. I think it's going to be more like a dimmer switch. It's going to be certain areas for certain people under certain types of businesses.

And gyms are going to be one of the last ones because we're non-essential and we're highly contagious. So we're going to have to deal with this, in my opinion, for the foreseeable future. And putting your head in the sand and wishing and waiting for Superman to come is not going to solve the problem. If you're not doing something right now, you have to because you won't make it long enough to get to the other side in line. Sounds like things we're learning now, the skills like phone sales, an online relationship are the things that are going to be part of every fitness business for a long time. I mean, it's my opinion. And nine months ago, we started something called a hybrid gym program, which is basically espoused this exact thing, which is providing

one-on-one accountability services for your members and using it as an up-up for an additional $49 a week. And so what that did was allow boot camps, to boot camps, cross-fits, et cetera, to charge $100 a week, $400 to $500 a month for the same services and adding a high-margin service on top to maximize profit and retain customers for a longer period of time than group training does on its own. Now that you build the construct and infrastructure, you learn how to fulfill a remote setting 101, it opens up your geography, so you actually can pool from other areas, so it's one.

Two, the people who do come back, you can add this as a Bolton service on top of your existing memberships so you can drive more profit. And then third, we're going to have some people who are just going to prefer to do that, and you just keep them at that $200 a month in a high profit service. Yeah, yeah, makes a lot of sense.

We've covered an absolute ton of ground there today. And just my last question before we finish is, you know, what's the biggest lesson you've learned in the last two or three weeks? I don't know if it's a lesson, but a reminder. Winners win. Right now, if you're listening to this and you're not sure what to do, that includes you. And the only thing that separates people who don't win from the boo-oo do is the ones who try.

And so as long as you continue to try, you can't lose. Because that's really what it comes down to. I wish I had something sexier for you, but that's just what it is. and if you see any person who's succeeding right now who's a gym owner and there are tons right now we're killing it. It means you can't tip. Okay. Alex Romosey, author of Jim Launch Secrets,

everybody read the book. Thank you very much for coming on the show. Appreciate it. Thanks for reading.