Re-investing In Your Business

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Transcript

Okay, so we just talked about the idea of getting to a 90 day break, even funnel. And if it takes a little bit more obviously, you're still in good hands, you're not running a franchise that takes three to five years to break even. So, when you go through your break even, it's trying to really learn how to reinvest after you get past that point, to be able to grow yourself and leverage yourself properly. So, when you have a breakeven funnel, you're able to cut it off right there, front, middle, back. Then what you're going to want to start doing is really investing a chunk of this portion of your money to push in your front end even more. Again, being able to outspend your competitors allows you to corner markets and that's how people become millionaires and billionaires very quickly.

So being able to reinvest your profits is important. That's why a lot of gurus will end up saying, Well, basically, if you look at it, most of my profits come from my back end, is it because they can only make money by coaching? Well, some, but most, it's actually not the case. It's in fact, because they have this economic sensibility of being able to invest almost everything of their business and profits outside of one or two core aspects back into their front end, getting more sales, producing more people inside their funnel, which eventually, you know, increases the amount of your back end even. So, again, if you can imagine you're now to exene, your front end, guess what you're probably going to also to x your middle, which again, increases how much you can invest in there. And if you two x your middle, guess what, you're probably going to two x your back end.

And if you've invest two x there, guess what, you're probably gonna three acts your front end, and so on and so forth, over and over. So It's the idea of reinvesting through this nature of learning your value ladder, finding out your AC, your ACV, which is your average customer value for your friend. So, like I said, Your ACV happens to be $40 you can invest $40 to get one sale that breaks you even right here. Now you have, you know, like I said, a never ending continuity, the average person who goes inside of continuity, spend $600 and someone who's inside your mid ticket, you know, this has maybe $1,000 or 997, right? So, whenever someone converts inside of here, you may only have you know, small convert conversion percentages, but it's all right, one out of 100 guess what, that means that you can spend 10 more dollars for each conversion if you know there's only 1% of front end buyers to buy a middle Maybe you have around here about a 5%.

So again, all these things, you can start investing right back inside, you know, you only want to take a portion of this maybe instead. So you're gonna go, Hey, instead of that, I will put in another 30 out of this 600, right? And now, boom, you're going to get twice as many people why? Because you're be able to spend now $80 per person, you're reinvesting into your business. And guess what, these people you're got to twice as many sales, like I said, twice as many mid tickets now being sold twice as many continuity, twice as many back ends. All of these things add up when you reinvest and are able to outspend your competitors and drive.

Pardon me, drive up the average customer value or the average cart value. Now, the most important thing that you can ever get, and this takes I talked about inside my salesmen secrets book, oftentimes anywhere from three years A decade even. But most of the time, it's going to take at least three years to understand. And as the lifetime customer value that lcV. And AOL was one of the first people to interact this economic sensibility and what they did when they went public with their IPO. If I can remember this correctly, it was something like, I'm sorry, I'm putting that wrong 25,277 and some some percent increase in their IPO the day they went public, because of this method, they were able to find out what the lifetime customer value was, which for them was $336.

So they said, Alright, we're willing to spend half of all lifetime of the lifetime customer value to acquire one customer. So that meant that they were able to, you know, devote about 100 $50 to every person. And what AOL did was they sent out all those CDs. And let me move it over. So you guys can see, my face is probably in the way CDs, you know, containing dial up minutes. I don't know if you guys remember this or you're old enough, but this is what they used to do.

They took over an entire market in the course of basically three years. And I had probably at least 50 or 60 of these CDs myself. So they were able to actually corner market because they could spend more than than their competitors. They knew the lifetime customer value. And from there, they were able to then even they were a big reason why the CD market expanded as much as it did. They drove at one point in time, I think it was they were 60% of all CDs in existence because they were creating so many of these marketing materials and it was quite amazing.

It's Things like that, that allow you to then reinvest in your company and go expansive very quick. So it's not about investing everything back in, it's about investing properly, accurately. And with patience, the instant that you start making sales here, I don't suggest that you invest. Now I suggest you work on just your front end. Make that so that it's a break even as close to this line right here as possible. All right.

Then once you have that done, any sales you start getting over here, you can invest a percentage of it all right now all but a percentage, a percentage. And then when you start getting more sales, you're going to get more of this you're going to get more back ends. And when you go into everything all together, that's what creates a business. You then can take all of this you have a good back end. It's made me making a six or seven figures a year. Great.

Invest all of this invest all of this back in here. Hear back in here, because in the end, it's driving eventually, all the people towards the thing that makes you profit, right? That's what a lot of people are doing. And that's what a lot of businesses and corporations are moving towards, is giving you so much putting so much in advertising, that it seems like Gosh, they have to be going broke. No, it's actually these one or two back end flagship products that make us almost all of our profits. But because we're able to outspend our competitors, we've cornered the market, and then eventually, we can dip that back down.

We can take all this away, we can say, Hey, now all I want to do that corner to market is just spend anything that I make on my front end, and then all of this can be a healthy profit for me. And that's what you do to build a giant company. And reinvesting is an important part of that. Of course.

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