My name is Los and welcome to Business Thoughts.
Before we get started, let’s address the elephant in the room. You’re probably thinking…
“Oh man, it’s another dude talking business. He’s probably a coach that coaches coaches on how to coach coaches about coaching.”
Actually, you’re wrong.
Here is why you should actually listen to me.
This is a space that I have created, where I help fitness entrepreneurs understand and grow their business.
We talk about metrics, strategies, tactics, mindset, and we help you grow.
Who am I? Am I just some random dude making videos, posts, email, and courses?
Technically, yes, but here is where it is important that you notice I’m not an actual douche selling coach into coaches.
The things that we do within my businesses are actually processes that grow businesses.
I am responsible right now as we speak for an eight figure business that I fully run, two other seven figure businesses that I have, and I’m building two more business that are on track to do seven figures.
If you do the math, that’s five seven figure businesses, one eight figure business and I plan on having multiple eight figure businesses.
I’m not out there pretending and doing bullshit. I run a team of over 20 people, almost 35 total, and we consistently do marketing every single day.
So, why should you listen to me?
Because I’m actually doing this shit while everybody else is just talking about it.
Now that we’ve addressed the elephant in the room, today, I want to talk to you about something that you need to do in your business. Now this goes for any type of business.
If you’re trying to create a business and scale that business, there’s only three metrics that you really need to care about.
Number one is lead flow.
Whether you’re selling a high ticket offer, you’re selling membership sites, or you’re selling e-commerce.
It doesn’t matter what trinket, coach, service, thing you’re doing.
The first thing you need to be thinking is.. how am I getting leads?
Brick and mortar. It doesn’t really matter.
If you are already bringing in leads you still need to be consistently bringing in leads.
Lead is number one. You need to be focused on how can I get leads? How do you get leads?
There are millions of ways to get leads. It’s unlimited on the Internet.
You can get them through Instagram organically, you can do paid Instagram, YouTube organically, or you can do paid YouTube… you get the picture.
Right now, you’re following me. You’re joining me. You’re having the conversation with the community.
So, that’s a lead. We’re acquiring the lead. But then what’s next?
Number two is average order value.
What is my average order value? If I’m spending money on ads, this is what really matters.
You have to spend money on ads if you’re actually going to scale your business.
Can I increase my average order value? Why does this matter?
Well, for one it’s money that you’re bringing in, but two, the important thing is if I’m actually increasing my average order value, I can afford to spend more money on advertising.
Let me give you an example.
I have $10. If I’m selling something and I make $10 on it but then I go out and spend money on ads and it actually costs me $12 to acquire that customer, I am negative $2 dollars.
Now that’s actually not the end of the world because of what I’m going to tell you next.
It’s better if I could make $25 and it cost me $10. Now, I’ve got a spread of 15 where I’m profitable and that allows me to spend more money on media.
The third metric is lifetime value.
Now, what does lifetime value mean? What is the lifetime value of someone that comes into the conversation and buys something from you?
So, let’s take the same exact example, right?
Someone comes in, the cost $12, so I lose $2.
Normally, you’d be like, “Oh, man, that sucks. This isn’t going to work.”
But you can measure your lifetime value and say over the course of three months, this person ended up buying a product, a supplement, a shirt, a service, whatever it is that you sell over an extended period of 90 days.. meaning this person is actually worth $80.
So you go, “All right. I lost $2 right now but my lifetime value is $80, so this person’s actually worth $78.”
Every time I lose $2, I know and I can figure out that I’m making almost $80.
I want you to start thinking and creating the processes necessary to gain leads, determine your average order value, and then ultimately your lifetime value.