How does $100M sound? Pretty good, right? In today’s episode, Dan and Anthony will be breaking down Alex Hormozi’s, $100M Offers.
Remember, with each episode, we will provide a helpful Deep-Dive infographic where we break down the entire book on to 1 page! Check out, and download, this week’s infographic below!
This book is a must-read if you are an entrepreneur, trying to get your business off the ground. $100M Offers, written by Alex Hormozi, will take you through the steps to success for your business, by showing you how to:
-Charge more than you currently are.
-Make a product so good, that prospects will find a way to pay for it.
-Enhance your offer so much, that prospects will buy without hesitating.
Hormozi found success in the fitness industry and expanded from there. In just a few years, he turned around 32+ brick-and-mortar businesses using the same methods shared in this book.
Here are our top 10 takeaways:
- Certainty, Speed, Ease
- If You’re Not Growing, You’re Shrinking
- 3 Keys For Growth
- Divergent vs Convergent
- Premium Pricing
- Know The Problem
- Shameless Plug
- Picking Your Market
“I remember being a kid learning Microsoft word, and thinking that clip art was gonna play a much bigger role in my life than it ultimately did.” – Anthony Vicino
“And so people perceive a higher price tag as being more valuable.” – Dan Krueger
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[00:00:00] Anthony: Hello, and welcome to multifamily investing made simple. This is the podcast where we take the complexity out of real estate investing so that you can get started today. I’m your host, Anthony Vino joined as always by Dan
[00:00:23] Dan: Clipy Kruger. Hello? I didn’t even know what that. Do you remember
[00:00:26] Anthony: Microsoft? Uh, word and Excel way back in the day.
And the little Clipy guy would come up, Clipy the, the paper clip. And he’s like, Hey, you look like you’re struggling with that word arc. How? Yeah. That was like late
[00:00:36] Dan: nineties, right? Yeah. I, uh, were you alive on that was the thing.
[00:00:41] Anthony: Okay. Are you familiar with, with Clipy Clippy? I forget people had, some people did not like Libby.
I springing back. You like blocking him out. I. Um, I, I remember being a kid learning word, Microsoft word, and thinking, um, That clip art was gonna [00:01:00] play a much bigger role in my life than it ultimately did.
[00:01:05] Dan: Was that like your, like your, your career that you had paid yourself in like grade school? I, I thought
[00:01:10] Anthony: that was the future wing ding fonts and clip art. Like, I don’t know. It just, I guess we use a lot of gifts. We use a lot of emojis, so maybe I wasn’t like terribly wrong as a kid, but like, you were just early.
I was, I was an early adopter too early. anyhow. So what does that have to do with today’s episode? Nothing, nothing. That’s the, that’s how we segue art, um, artfully and awkwardly into the today’s topic, which is we’re gonna be doing a D a book deep dive. Now, before I tell you the book, which you probably already know, um, because of the title of this episode, um,
But if you don’t know, because you just happen to listen to our podcast, like religiously without even like clicking on it, you’re just like, cue me up. This sounds like the next episode just starts, starts point. So you don’t know, you don’t know what the book is, so you stay tuned. Uh, Mr. And Mrs. We’ll tell you here in a second.
Um, [00:02:00] but if you do not know every week we do a book, deep dive and. We’re trying to take some of our favorite books, the ones that have been most impactful, some of ’em are real estate. Some are investing some philosophy and we’re trying to distill them down to 10 takeaways. So five from me, five from Dan, and then we take those and we create a beautiful, a beautiful infographic that we call the sophisticated investor.
Or spark notes or something like that. I don’t know. And we keep, we keep those inside of a vault. That’s safe, um, because they’re so valuable, but really they’re just distilling all our takeaways into a single page. If you want a copy of those for all the past episodes that we’ve done, you have to shoot me in email, Anthony Invictus, multifamily.com, and I’ll send you the link.
You can see all of the investor notes. So that’s my plug. How much does that cost free? Free
[00:02:45] Dan: 99? What. I’m not happy about it, but, but I tell
[00:02:49] Anthony: you what, it’s free 99, but I’ll give you guys a, a one time coupon, uh, for free 99 off. So I think that brings our total up to [00:03:00] free.free, free . Yep.
[00:03:01] Dan: Uh,
[00:03:02] Anthony: well, now that people are thoroughly confused, this is gonna cost you nothing.
It just, uh, we’re trying to save you guys time and, and hopefully. I, I actually dunno where I was gonna go with. Hopefully just, I hopefully trying to say time’s
[00:03:13] Dan: like these books are great. We happen to love reading. We realize a lot of people don’t, but that doesn’t mean they shouldn’t get the knowledge.
So let’s make it easier. Let’s try to SP spread the wealth, the knowledge without having to force people to read those horrible books. That’s
[00:03:25] Anthony: interesting because I come at this from a completely different perspective. If you don’t like reading, you’re dead. I, I, you need to suck it up and figure it out because it’s like the most important thing in my life.
And if you don’t like it, then I don’t wanna be a friend. I wanna do, I do these book reviews because people that like to read, they have too much on their to be read list. Like I got a hundred books sitting on my shelf right now that need to be read. And I, I wanna get to ’em. I feel bad that I can’t, I don’t have enough time.
So for those people, that’s who I do this for. So you do it for the slack. Yeah, I do it for the people who think they have more time
[00:03:58] Dan: than they really do. That’s me. Cuz I’ve [00:04:00] got a stack of books that are to be read, but I’m here doing this, not reading. Yeah. Not reading. So
[00:04:05] Anthony: let’s get to it. Okay. So today’s book is called hundred million dollar offers how to make offers.
So good people feel stupid saying no by Alex Hermo you’re impressed. I got that on the first try. Aren’t you? That was, there were
[00:04:17] Dan: 97 takes before this, so.
[00:04:21] Anthony: For, for some reason, good work. That title is hard to get, get thrown. It’s a lot, lot words, a lot of stuff going on. Okay. So you’ve heard us talk about Alex from Ozi on this podcast a ton in the past.
He’s a brilliant guy, really thoughtful. We’re a little obsessed. We’re a little bit. I got a man crush on this day. I’ve got his poster in my
[00:04:37] Dan: bedrooms. that? It inspires me. His handlebar
[00:04:44] Anthony: mustaches, handlebar, mustaches got huge muscles. Got big brain, uh, big business, big bank account. Um, no,
[00:04:50] Dan: he thinks a lot like us.
I feel like philosophically there’s a lot of alignment. So whenever he says stuff, it just clicks.
[00:04:57] Anthony: Yeah, he, he is. I, I like him a lot in terms of like how to [00:05:00] build businesses. He’s been very successful. He built some gyms called Jim launch and then a couple others. He owns acquisition.com and he has nothing to sell you.
He, he just puts out a lot of great content. This book is one of those examples. You can pick it up for, I think 99 cents on Amazon. It’s as cheap as they’ll let, uh, let you put books on Amazon. So I do recommend you go pick it up because it is a very, very good book and it’s very quick.
[00:05:21] Dan: Don’t be turned off by the title.
Cause this is one of those titles that could come off as just kind of cringy. If you don’t know who it is and what he talks about, you might look at it and be like, oh Jesus,
[00:05:30] Anthony: I, I will say if you’re not NCH manure or business owner or salesperson, then this book is not gonna be great for you. Yeah. You’re not trying to sell something.
You’re not trying to sell something so that, that can maybe like help weed out some people and be like, oh, I’ll check out now. Um, but there are actually a couple of concepts in here that are, that I pegged and I don’t know what you have on your. That I think regardless of where you’re coming from in life, like these are gonna be very
[00:05:50] Dan: helpful.
Oh yeah. I can, I can buy at least a handful of these into just
[00:05:54] Anthony: life. Yeah. All right. So let’s get to it. Let’s get into the, let’s get into the, the, the cattails. [00:06:00] I wanted to think of a more specific weed.
[00:06:03] Dan: Dan line, the baby line. Let’s get
[00:06:05] Anthony: into the, let’s get into the Thicke.
[00:06:08] Dan: Okay. Let’s do it. You wanna go?
[00:06:10] Anthony: Oh, that was awkward.
What? Okay, I’ll go first. What we both said, do you want go, oh, did you? We both said assignment sin.
[00:06:16] Dan: all right. Uh, let’s go at the same time. Okay. This is gonna be a mess. Here we go.
[00:06:21] Anthony: Number one. Um, and this is a really interesting one to think about. If you’re developing a product that you wanna put in front of people is to understand that people pay for certainty, speed and ease.
So certainty is like, how certain is it that this thing’s gonna work? Speed. How quickly can I get it? And how quickly will it work? Ease. How hard is it gonna be for me to implement this? and when you break it down to those three things, it’s very helpful actually to think about for our business as real estate investors who raise capital, let’s say, let’s look at through the lens of investing.
How can we increase the certainty for our investors when they give us money to say, like, I feel more certain that [00:07:00] these people can do what they say, how can we. Increase the speed, make it easier and less friction full for our investors to fund a deal. How can we make it easy? So there’s no like convoluted, um, spreadsheet process to understand the waterfalls and like, how can we make it simple?
And so you take those three concepts, certainty, speed, and ease. And, um, I, I think it’s just a really helpful. Framework to look at products.
[00:07:26] Dan: Yeah. I think the, the example he used in the book was a, uh, I think he gave a couple, but the one that really kind of clicked for me was he compared meditation to, um, like a, a Xanax or like an antidepressant or something.
Yeah. So if you’ve got anxiety and you’re in the market for a solution and you went down and he. He, uh, ranks these things on a scale of one to 10. I can’t remember if one’s good or bad, but for this example, we’re gonna say one is ideal. So if you look at okay, you’re, you’re anxious, you’re depressed. You have, you have mental issues that need to be impacted.
You could either medicate or you could go get some Xanax.
[00:07:58] Anthony: Wait, wait, wait. So you [00:08:00] can either medicate or you could meditate.
[00:08:02] Dan: That’s right. Nice. Um, I
[00:08:04] Anthony: can’t I just gave up, I just, are you proud? I’m so psyched. I’m. I’m a nerd for words. I’m a word nerd. Go ahead. Okay.
[00:08:13] Dan: what if you’re done? I’ll get back to it. So many rhymes.
All right. So let’s take this example of medication versus meditation. you
[00:08:23] Anthony: like that? Anthony, I’m writing
[00:08:25] Dan: this down as you are . And so you, you rank these things. How, how certain is it to work? How easy is it and how quickly does it work? Let’s look at meditation. Are you certain it’s gonna work? Eh, so maybe like an eight outta 10, which is not great.
Let’s say ease. How easy is it to meditate? It’s actually pretty hard. Most people tap out. So let’s say nine and speed. It’s not gonna happen right away. Meditation works when it’s done consistently for a long period of time. So maybe nine now let’s compare it to drugs. How are certain, are you. Or how certain are you that it’s gonna work?
It’s guaranteed to work. Number one, ease. It’s right there. You get a scripty Papa pill and you’re done one speed [00:09:00] works right away. 30 minutes. Easy, then you add those up and you’ve got two vastly different numbers. So being able to kind of quantify it like that, I thought was cool, cuz I’m a bit of a quant geek, but applying numbers and that kind of logic to making a decision always helps me.
And so that, that’s what really made that one click for me. I liked it a lot.
[00:09:15] Anthony: No, I think so too. And if you even take the through the, this is why I met it. Medication is such like a big industry. And it’s only recently that meditation is starting to, you know, become more of a culturally accepted thing. And even within meditation, the apps and the, the services that are succeeding, like, uh, mind space is that Headspace, Headspace, um, think about certainty, speed and ease.
What are they doing to help increase those things? Mm-hmm in terms of. They’re making it easier to use every day. Put it on an app. It’s really simple. Click the button, just sit down. They’re increasing the speed by saying, Hey, just five minutes a day. Like, so decreasing the, the time commitment and then the certainty of like, well, this is working for millions of other people and you hear a lot of stories and like successes and reminds you, it reminds you.
So it’s like, they’re trying to, [00:10:00] even within this thing, that’s inherently not, um, very high on the certainty speed, ease, ranking. They’re, you know, they’re increasing it, which is helping those.
[00:10:08] Dan: Excel. Yeah. But at the end of the day, what he said to really drive home was like the, the medication, the, the pharmaceutical business is multi-billion dollar industry and the meditation business is nowhere near that because of those three factors.
So, yep. Uh, hugely important there. Cool. Um, one that I got out of this is, uh, one that I got outta this is, uh, um, maintenance is a myth. And so. This one kind of struck home with me because it’s really easy as a business owner or an entrepreneur to be satisfied with maintaining where you’re at, but the way he kind of broke this down really res resonated with me because when you think about it, the market as a whole, like you can look at S and P or just.
How the, you know, GDP or whatever you wanna look at the, the market as a whole is growing at X percent per year. And so if you don’t grow from year to year and the rest of the market grows [00:11:00] 10%, then actually you just shrunk relative to everybody else. So maintenance is actually falling behind. And so you need to at least match the market.
To stay where you’re at. So that could be eight, nine, 10% year over year growth. That’s just breaking even basically. And if you’re in a high growth industry, that could be 20%. And so that one really struck home with me because it’s really easy to start to feel comfortable with maintaining. It sounds good, but really what most people think of as maintaining is actually a slow death.
[00:11:29] Anthony: Yeah. So I talk about this one, a ton in terms of ENT. and how, when just a system left without an injection of energy, is this gonna slowly decay into a state of all out entropy? Right. So there is no such thing as stasis or equilibrium. Like the whole, the universe of horror is a vacuum, right? It’s either we’re moving forward or we’re moving backwards.
And it’s the same for us as individuals is the same for a business. There is no static. This is good enough. Let’s stay here. Like if you, if you take that [00:12:00] mindset, then you are guaranteed to be moving backwards. Even if you don’t realize it in the short term, at some point you don’t notice, you’ll poke your head up and you’ll go, oh crap.
We’re really far behind. And at that point, it’s probably too late to re kickstart the engine. And that’s why you see a lot of like these old mom and pop business owners who have been doing okay for many, many years. And then there comes this point when it’s like, this is not working anymore. And nothing that they do will, will turn it around.
Yeah. Yeah, I like it. Okay. My number dose, my numero dose. Um, this, this word niche. niche, niche, niche, slap niche, slap, um, niche. So Alex talks about how most entrepreneurs need to be niche slapped, which means that they need to commit. They need to pick a lane and they need to commit to it once they pick.
And the grass is always gonna look greener on the other side, but recognize that to, to Excel in business, that you have to find your niche. And it’s probably more niche down than you even think. And so for us, um, this is a constant battle [00:13:00] of wanting to, you know, expand outside of the twin cities let’s say, or expand into new to new asset types.
Right? It’s a constant battle that we have to fight internally say, oh, Nope, we need to stay in our L stay focused or twin cities. Multi-family like, that’s what we do over and over and over. And until you’ve mastered that thing and the system is just, you, you can’t keep up with the growth there anymore.
You, you can. Bring into more things into the niche yet.
[00:13:25] Dan: Mm-hmm yeah. It’s I mean, it’s classic shiny object syndrome. I think it’s really easy to fall into that because it seems like you’re getting left behind. Um, you see everybody else doing all these great things and we might, you know, kind of justify these ideas by saying, oh, we’re diversifying we’re, you know, we’re hedging our bets, we’re getting in different.
But at the end of the day, what it is is it’s a distraction because we’re gonna assume we do go into a different asset class or different area. Guess what we are the. All over again. And why do we wanna take, uh, you know, a significant amount of our resources, uh, to go and be the new guy over here makes a lot of [00:14:00] sense when it’s a really small piece of the pie.
Once you’ve got a really big, awesome machine, that’s just on autopilot over here. But until we get to that point, it’s, it’s just a distraction, at
[00:14:08] Anthony: least for us. It’s, it’s fascinating cuz it can, and there always comes this point where, when you’re doing the thing that you’ve always been doing growth gets.
And then you look over and you’re like, oh, that asset class or that market, the growth would be easier. And for some reason you look at that shiny object and assume, oh, that would be easier rather than just trying to continue down the path you’re on and figure out how to continue growing mm-hmm . But if you think about when you first started down that path, how hard the growth was.
Yeah. right. And that’s exactly what you’re signing up for when you switch or when you try to do multiple things. And so it goes back to, I think Keith Cunningham, who said that most businesses suffer from indigestion, not starvation mm-hmm . So the goal here is to do less, better.
[00:14:46] Dan: Yeah. I mean, you just don’t know what you don’t know when you’re looking at that new thing, you just see other people’s success and you aren’t aware of all the, uh, the speed bumps and issues and, and, uh, um, detours that you’re gonna have to take.
When you get into that new venture, you just see that other [00:15:00] people’s success and it’s not until you get there that you realize, oh, wait, this is really hard. And actually hell of a lot more risk than I thought it was gonna be. So, um, next one I got is if you want to grow your business, there’s three things you gotta.
get more customers. Number one, increase their average value, get them to buy more. And the first two are the ones that matter. Um, the reason I pulled this out is because it’s not the most profound thing in the world, but I’m a big fan of distilling, um, problems and, and questions down to their most basic form.
And I think at the end of the day, most everyone’s entrepreneurial business issues can come down to. These kind of fundamental things that need to be solved for. And so if you’re looking at your business, you’re trying to figure out what’s wrong, man. The wrong place am, am I marketing wrong? All this? You ask all these, all these questions, but if you break it down to those kind of three things that matter, you’re able to identify, okay, what do I need to do?
Do I have a bunch of customers and my price points just weigh off. Or maybe my price point’s good, [00:16:00] but I have no customers or maybe they’re just not buying enough. It lets you kind of identify which of those three areas need work. Maybe it’s all of them, but it helps you figure out what you need to focus on.
And I think, you know, in Keith Cunningham’s words, it’s, it’s a better question to be answering as opposed to a more specific problem that you might be facing. That’s more likely a symptom of one of those things. That’s not, uh, being executed. I think
[00:16:24] Anthony: when you just distill it down to that’s, what’s really cool about this book.
We’re all about like simple frameworks and concepts. And that’s one of the things this book does exceptionally well, where it’s able to take this concept of really the only three ways to grow your revenue line is more customers. You can charge more or get them to buy more. Yeah. And it’s like, when you break it down, like they’re like, oh yeah, I guess that is, and you don’t need to go and tackle all three of those.
You’re like fi figure out the one and you’re like, okay, this quarter, we’re gonna focus on getting more customers mm-hmm and then next quarter, we’re gonna focus on charging more for those customers. And then third quarter, we’re gonna focus on getting them [00:17:00] to buy more and like going through that rotation over and over.
But it’s, it’s shocking. Like how few levers there really are in business. It can seem very con convoluted and complicated.
[00:17:11] Dan: People like to complicate things. Yeah. You know, but at the end of the day, you trying to simplify, I find a much, uh, better approach, but sometimes I think we want the problem to be complex because then maybe we feel better about having it.
[00:17:26] Anthony: which one of these three do you think, do you, do you like the most as like a, a lever to pull, do you average more customers increasing how much they pay or how much, how often they.
[00:17:37] Dan: I’d say average value, uh, increasing the average value
[00:17:40] Anthony: of a customer. So like the price or the frequency okay. Price,
[00:17:43] Dan: the price.
Okay. Yeah. And it’ll, that’ll kind of lead into another way. I’ll two in a sec, but yeah,
[00:17:47] Anthony: it’s interesting. When I, when I look at these lean actually towards the first one, like, because I know how to get more customers, so I like that one just getting quantity. But then, um, the other two actually end up being much more [00:18:00] valuable in the long run in terms.
Um, lifetime value of your customers. So what I prefer is high churn
[00:18:07] Dan: yeah, I guess my, my thing is that I, I, for whatever reason, am more drawn to the concept of providing a more bespoke, uh, thing to a smaller group of people than trying to provide something really basic to the masses. I don’t know why, but for whatever reason, the former always kind of appeals to me more.
[00:18:27] Anthony: that masses, he hates. not all the they’re coming for you.
[00:18:30] Dan: Just those masses that normally. Yeah. You just, you just, oh, you
[00:18:32] Anthony: masses. I love, oh, you guys are great masses. all right. You masses. Let’s uh, my number three is, um, the difference between divergent and convergent thinking. So convergent thinking is, uh, there’s a lot of different ways to approach a problem, but ultimately it’s all gonna converge to a singular solution.
And so this is like one plus one equals two. There’s a known answer and we can quantify it. That’s that’s what a lot of the teaching of school teaches us like [00:19:00] memorization, and then just like using this formula to get to, to the solution, but in entrepreneurship and in the world at large, even if you’re a w two employee, the more valuable form of thinking is divergent thinking.
And this is when I talk about how creativity is the most important skill in the workforce. Um, it’s this divergent thinking. Recognizing that there can be multiple solutions to a problem. And the more solutions that you can come up to, to a problem, like the more creative, more divergent you are, the more likely that you’re gonna stumble on something that a will work and B work in a way that nobody else has ever thought of.
And so you can get outsized rewards for that. It, I was listening to a podcast recently about how. China is putting out all of these science and engineering and math PhDs. But the problem with them is that they’re, they’re just like recitation monkeys where they, they can do the math, they can do the formulas, they can recite everything really, really well, but they can’t think creatively.
And so I think this was Naval who was saying, um, I would take one Einstein over a thousand [00:20:00] PhD drones because Einstein is gonna come up with like, Uh, concepts and ideas and go from zero to one. Whereas, you know, the drone can only ever go from one to one. They can just keep doing the one thing. And so I found that really, really interesting.
There’s an exercise that he, that Alex shared in the book, which is a really fun one, uh, that psychologists use to measure how creative a person is, which is to say, okay, here’s a brick. Now you have one minute to come up with as many alternative or as many uses for this brick as you possibly. and, you know, if you’re not very creative or not very divergent, you’re gonna come up with like five.
You’re gonna, like, you can use it as a brick. I could hit somebody with it. Um, you know, but the more creative you are suddenly, you’re like, I could use it as a door stop, but I could use it as a paper stop. Um, I could use it as a piece of art on the wall. I could use it as a trophy, like, and so I find that to be, if, if you really wanna move forward in your business or in your job, work on your divergent thinking, mm-hmm, be
[00:20:57] Dan: creative.
Yeah, I agree with that. A lot. This came up [00:21:00] back in the day when I had the, the side hustle in the corporate world and was, uh, doing nutrition coaching. I put together these customized, uh, programs for people that worked in, you know, let’s say someone wants to lose weight, but they’ve gotta go out to restaurants for happy hours and work stuff, and they still wanna see results, but they’ve gotta have, you know, a certain amount of bad food, uh, worked in there.
Uh, it’s totally doable. And I could easily just put together programs and say, here, do this. don’t ask questions, just do it, do it. But I always wanted to, and this was my little pitch. I always wanted to educate people and, uh, coach myself out of a job. Um, because if they didn’t understand the, the fundamental reasons as to why we were doing things, then they would never be able to pivot if they’re just memorizing.
Here’s what I eat today, but they don’t know why then they’re useless as soon as anything changes. Um, but if you understand the logic and the reason behind why things work a certain. That gives you the ability to adapt when the world changes. So it’s really powerful being able to think creatively, as opposed to just memorize facts, [00:22:00] because if you just memorize facts, you don’t really know how to think in my.
[00:22:04] Anthony: Another use for bricks is you could tie ’em to your feet and use them as height enhancers. You could also put ’em on your head and wear ’em as a hat. So height, enhancers, height, enhancers. Yeah.
that’s all right. It’s interesting. What’s your next one? That’s the thing about convergent thinking or divergent thinking is that’s no such thing as a bad answer.
[00:22:26] Dan: I mean, we probably wanna work in the, the packaging and the name. I feel like we could do better enhancers. Um, anyways, next one for me, number three, premium prices, blah premium pricing is needed.
Uh, this ties in a lot with that question that an Anthony asked me on the last go round, which was, do you like getting more customers increasing the average value or getting them to buy more times better? I said, I. Average increasing average value has been my favorite because it really aligns with this other, um, concept that Alex talks about in the book, which is if you are going into a market and you are trying to appeal to [00:23:00] everybody and, um, you know, cast as wide and net as possible, what ends up happening is happening is you become a commodity.
And the only thing that’s gonna prevent you from. Um, the only thing that’s gonna lead your success is competing on price. And so it’s gonna become a race down to zero to the lowest price. Your margins are gonna erode, and it’s just not gonna go well. And so if you wanna be successful, you’re gonna need premium pricing.
And so in order to do that, you need to have a very specific niche. That’s, what’s gonna enable you to charge a premium price because if you are just, uh, a personal trainer, that’s great. There’s a million. People are gonna go to Amazon or whatever site they go to to find personal trainers, they’re gonna sort by cheapest and they’re gonna go to the cheapest guy they can find.
But if you are a very specific type of person, let’s say you are a traveling sales rep in the medical device industry. And you find a trainer that specializes in traveling salesmen for the medical device industry. You’re probably gonna pay top dollar for that guy, cuz he knows exactly what you need and that’s how you get a premium price.
So takeaway from me on this one was [00:24:00] get super niche down, not. Identify a market segment, but get really specific about who it is that you’re gonna serve. And that’s gonna enable you to charge a premium price, keep those margins high. And it’s win-win for everybody because you’re gonna get better customers.
They’re more in line with what your skillset is. They’re gonna pay a premium price and they’re not gonna be hagging you trying to get, uh, get you to down to bottom dollar prices. So. The niche down. And
[00:24:22] Anthony: the thing I like about the premium pricing is that you’re able to deliver better results. Mm-hmm when you have better margins, when you have big fat margins, it’s not just like you’re laughing all the way to the bank with all your dollars.
What it allows you to do is allows you to invest more time into the development of the product. It allows you to develop, to spend more time on the, the, the client’s interaction, uh, and the user journey. It allows you to have better packaging, better just process and. Client itself is gonna have a higher level of commitment cuz the client that pays $10,000 for coaching is gonna take it more seriously than the one who pays a hundred dollars.
Right. And, and I find that [00:25:00] really interesting because when you don’t have, I I’ve discovered this too in, um, other businesses where it’s a race to the bottom, as the margins get thinner and thinner and thinner, the quality of product you can deliver also starts to suffer mm-hmm and there comes this point where your product is just so bad.
That, why would anybody pay more for it? And so you gotta get out of that. You, you, you can’t let that death spiral even begin.
[00:25:23] Dan: Yeah. Yeah. There was a good example that he used in the book about, um, a, um, a study that was done. I can’t remember the details, but it was effectively a wine tasting study where, uh, participants were given.
Handful of wines at least three. And they had the price point labeled on the wines and the participants were supposed to rank them in order of how good they were. And, but in no surprise, um, they ranked the most expensive one highest. Uh, the second most expensive one was second and the cheapest one was ranked third as not as good as the other.
It turns out it was the same damn wine. They just had different prices on ’em. And so people [00:26:00] perceive suckers, a higher price tag as being more valuable. Now, hopefully it is hopefully you are providing a more, uh, higher value product, but. That just goes to show that that’s gonna have an, an impact on the end user as well.
If you’re charging them more, they’re gonna feel like they’re getting more. They’re gonna take it more seriously. They’re gonna, they’re gonna try harder. So if you’re selling a service that re requires them to par participate in some way, you’re gonna get better feedback from them. And it’s, it’s gonna be win-win for everybody.
They’re gonna take it more seriously. If you sell somebody something for five bucks, they’ll just throw it away and yeah, they don’t care, but mm-hmm yeah, it’s kinda like a, a, a bottle of water. You give it to someone for free. They may or may not drink. Charge ’em five bucks. They’re gonna finish that water.
That’s what you think
[00:26:40] Anthony: they probably still won’t. Yeah. Yeah. But if you charge me a hundred dollars for that bottle of water, there we go. You know that, and that’s, there becomes a point where water suddenly becomes like very valuable and to drink it. Yeah. And I will drink it if I paid a hundred dollars for it.
yes. And for no other reason to say I drank a hundred dollars water anyway, uh, number four for me is understand the [00:27:00] objections thoroughly before supplying the solution. I think quite often, we. Which we just jump straight to the solution. It’s like, Hey, Hey, trust me. I know, I know what you’re going through.
Just trust me. Here’s the solution. You wanna buy this thing, buy this thing, buy this thing. Look at all these features that are great. And. Alex always. He talks about this concept, which I find very powerful. It’s if you could, if I’m sitting down with you and you could articulate to me every pain point and struggle and fear that I had in relation to some, whatever product you’re you’re selling.
So if it’s fitness, if you could like address every fear, subconscious and conscious that I, I have, like, this is what keeps me up at night and this is, this is the thing that I, I worry about. If you could address every single one of those. Without me having to tell you what they are. If you could just sit down and be like, you’re probably struggling with this and with this and this other thing and this and this, and I know how this feels.
If you did all that, you wouldn’t even have to tell me that you have the solution and like, convince me, I would believe you because you’ve been able to so accurately pinpoint my, my pain that I would be, I [00:28:00] would just assume that you know how to fix it cause otherwise, how could you have known this? And I find that to be a, a completely different way to come outta sales interaction instead of just leading with the.
just focusing entirely on the problem and showing that you understand it thoroughly
[00:28:15] Dan: mm-hmm . Yeah. I think anybody in sales can benefit hugely from, from this concept because the amount of people who have tried to sell me on something before even asking me a question, ISS, huge, a lot of guys just jump right into their pitch.
They went through training, they, they read the handbook, they have all the information on the product and they, they, they want to tell me how awesome it is without even knowing what it is that I.
[00:28:39] Anthony: And so there is no sure way to lose a sale than to misidentify the problem. Yeah. Right. Like if somebody comes, don’t even
[00:28:45] Dan: ask, yeah.
You just assume, oh, this is gonna be this guy’s problem. I’m gonna try to solve for he’s. You know, it, it really on, if you’re on a sales call or in some sort of experience with a potential customer, you should, you shouldn’t even really be talking. You should just be listening to them [00:29:00] and understanding them.
And then by the end of it, it becomes very clear what needs to happen. So shut up and.
[00:29:06] Anthony: Yeah. And this, this is also useful for during the product design phase of your project of understanding, like understand the objections before designing the solution. Cause a lot of times, like we think we have the best solution, but then you actually go to market, you talk to the customers and you realize like, oh, the problem I’m solving for, isn’t actually the problem that they realize they’re realizing.
[00:29:27] Dan: Yeah. The, your problem you’re you are perceiving this as being a big problem. You take it to the market and find out those people don’t care. There’s actually a much bigger problem that you just completely missed. And you built this useless widget. So
[00:29:38] Anthony: like, uh, who said this there’s nothing more useless or there’s nothing less wait, I think this was Peter Drucker.
There’s nothing more useful than solving a problem that didn’t need solving
[00:29:49] Dan: nothing more useless. Probably.
[00:29:51] Anthony: What did I say useful? Well, yeah,
[00:29:53] Dan: take that. The rest of it sounded great though. Yeah. That’s Peter jar. I got it. Um, Okay [00:30:00] next for me. Oh, geez. I’ve got a couple here. I gotta try to figure out which one I’m gonna do.
Okay. I know which one I’m gonna do. This one was, was impactful for a couple reasons. So number one, uh, if you listen to the audio book of this book, uh, you’ll notice that in the middle, the book almost stops abruptly and Alex Ram mosey starts pestering you for reviews on his. And I got excited about this.
I think I, I called Anthony and then just texted him. I wanna say, I called you and said, why aren’t we doing this? So first I’m gonna do it. I’m gonna stop this show dead its tracks and tell you guys that we are desperate for reviews on this podcast. We I’m hungry for reviews. My I’m looking at my review bag.
There’s nothing. So I need you guys that review bag is empty. It’s you ate ’em all. They’re all gone. I ate review monster. Okay. Anyways, so no, we do need reviews. They’re hugely value valuable to us. So it’d mean a lot to us. If you guys wanna leave a review, even if you don’t like this episode, like just leave a comment, tell us what sucks about it.[00:31:00]
But to get to the point, this one I think was, was, uh, impactful for me because a, it got me to just call, um, and tell him, like, we need to do this, but also just asking for. What you want and, and unapologetically telling the market what it is that you want your customers, uh, whoever’s around you. Don’t hesitate to ask for what you want.
Um, we’re in the middle of acquiring a property management company right now, and I was sitting down the other day with a few of the incoming employees going over what they’re gonna be getting paid on our side. We’re giving ’em a little bit of a bump. And, um, I proje, uh, presented one of the offers to one of these employees, which had a pay increase from where he was at, in.
And he turned around and asked me for more right off the bat. And I knew that this guy was worth it because of what the seller of this business had told me. And so I gave it to him primarily because he had the CAS to, to ask. And I had a lot of respect for that, but I think for new entrepreneurs and business owners, uh, the amount of people that, that undervalue their time early on.[00:32:00]
it’s pretty much everybody. It’s very rare that I think somebody enters the market for a first time and actually values their time appropriately. So don’t be scared off premium pricing just because you’re new and inexperienced recognize that you’ve got a lot of value. And even though you’re pretty new, you’re probably bringing in 5, 10, 15 years of accrued knowledge from somewhere else that you’re giving to people.
So ask for what you’re worth. Uh, don’t apologize about it. And if you want something, just ask.
[00:32:26] Anthony: the other side of this. So I will add is, uh, self-awareness is a superpower. So yeah, if you audit your skills and you’re like, yeah, you might not be, I’m not that valuable. My God pump the brakes. It’s okay. You can go get more valuable, but yeah, self-awareness the, the thing I’ll add about this, the book review was interesting because I think you, we were listening to that around the same time that our audio book of passive investing made simple was about to go live.
I think I was, I was just finishing up record can process in there and you’re like, No, I think we did. Oh, did I? I might be completely wrong, but I do believe it’s in the book, actually. I believe it’s somewhere, halfway through. I think we did do [00:33:00] this. Um, and I remember listening to the audio book cause I had the same thought.
I think I had started implementing it actually, before you called me, we there’s like a two day of course. Two day period between yeah. Um, and I think I had started the ball rolling before, so I, but the, the lesson here was. Um, be a student of all things always. And like when you see something on a billboard or see it in a commercial or hear something wherever you see somebody doing something, well, take that and be like, how can I do that?
How could we implement that? That’s like, yeah, what do they say? Like great artists steal. Yeah. Steal. Like if you see somebody doing something awesome, like figure out how can I, how could I do something similar? Yeah. He didn’t trademark. No. And, and Alex, Alex would be the type of guy who would be like, why aren’t you doing
[00:33:42] Dan: this?
Yeah. I mean, the whole book is like about how to like, do better at growing your business. So obviously he wants you to
[00:33:47] Anthony: take his strategy. Honestly, he was the first and only book I’ve ever seen that did it. Exactly. And when it happened, I was, I remember thinking, holy crap, how is
[00:33:55] Dan: nobody else doing this?
Yeah. So simple. Just stop and ask for what you wants. Yeah. Anyways. Sohow [00:34:00]
[00:34:00] Anthony: um, I think it’s more prevalent in podcast. People stop midway through and say, ask for things all the times, but in the book that was crazy. Anyway. Mm-hmm um, I remember so here’s interesting. I, I listened to that part before I had read the book, cuz I ended up reading the book physically afterwards mm-hmm and I was like, is that physically in the book?
Or did he just like Adlib this and it turns out it’s not in the book actually. No, I think it is. I think it’s a
[00:34:19] Dan: page in the book. I think it is. I’m trying to remember. Cause I did the same thing. I typically will like listen to books and if I’m really into ’em then I go get physical one and sometimes I just know immediately it’s okay.
I’m just gonna buy the physical. But a lot of times the, the audio book’s kind of my, my entry way. Uh, but this was one of those that I had to go out and get just because I was like, this is not just a book. This is a, a, a resource manual that I’m gonna reference a lot.
[00:34:43] Anthony: all right. So my last one is desire comes from not having what you want.
So that’s, it’s simple. Desire comes from having something you want or from not having something that you want. And it’s like, um, I think [00:35:00] Naval Racon says that desire is a contract you make with yourself to be unhappy until you get that object of your desire. So stop wanting, so stop wanting things, right.
And just reduce that expectation of like, I don’t have this thing. I want it. And desire goes away. But I think desire, I was thinking about this the other day, desire and goal setting is when you set a goal, it’s actually a very strange occurrence because you are admitting that there’s something in this world that.
Want that you do not have that you currently lack something. A goal is like an implicit acknowledgement that there’s something you want, that you do not have. I
[00:35:36] Dan: do. Uh, what I ask you is, do you remember what Neal’s solution was for that? Because I feel like he had some kind of nuanced way of solving for, um, you know, not having goals, but still being able to have some sort of like motivation to move forward.
Cause if you get rid of your goals, Because you don’t wanna be unhappy about not how you actually have, like, I
[00:35:56] Anthony: feel like he had a it’s interesting with Naval. I don’t believe his, [00:36:00] his end thesis was like some kind of workaround to say like, okay, therefore, this is how you cheat the system. I think his point was simply if you acknowledge that you had signed the contract with yourself, To be unhappy until you get that thing of your desire, then there’s like, self-awareness self-awareness exactly.
Then, then you will realize as you are unhappy in pursuit of that thing. Okay. I understand. And I’ve signed up for this. And I think a lot of times people are unhappy because they don’t even acknowledge that they are the masters of their universe and they chose this path for
[00:36:30] Dan: themselves. Yeah. They just go get some Prozac and yeah.
Yep. All right. Um, I like that and we always gotta works in Niva even when we’re talking about promo, I mean, this is. Those are our boys right there. So, Alrighty, my last one, I’ve actually got a couple more here. I gotta figure out which one I’m gonna do. Um, you gotta pick the right market. Uh, there’s a story in the book, uh, which I thought was great about this guy, Lloyd Lloyd Lloyd’s name Lloyd’s Lloyd’s genius.
He’s a great guy. Super smart. And Alex talks about [00:37:00] how he was in a business. Uh, he was running a business that supported the newspaper industry. He wasn’t in the newspaper industry per se, but. Business and his product was used by newspapers. And so that was his. and he was doing all the things, right. He’s very qualified to be successful in business and he couldn’t wrap his head around why his business wasn’t doing well.
And you as the listener, obviously from an outside perspective, know exactly why this wasn’t going well. He was a really great guy in the wrong market. The industry was in decline and no matter how well he executed with his skillset, His industry was in decline. So it’s like, you’re trying to swim upstream.
It’s it’s a losing battle. And so identifying the right mark to be in is gonna be essential. So you’ve gotta zoom out. You’ve gotta get out of the weeds and make sure that the big picture actually aligns with what you’re running at. So make sure you’re, you’re playing in the right field, no matter how good you are.
And Alex, uh, suggested looking at a few different things to make sure you’re in a good industry. One. a good [00:38:00] industry is going to, it could be doing any of the following, but these three are kind of ideal spots to be. You’re either improving people’s health, you’re increasing their wealth, or you’re improving, helping them improve their relationships.
So that’s not all the, you know, good markets to be in, but those are three examples, uh, where if you’re focusing on one of those three, you’re probably gonna be in a pretty good spot. So make people healthier, wealthier. Communicate with each other better, but the point of this is you gotta make sure that just because you’re doing all the right things doesn’t mean that you’re trying, you’re not trying to play the wrong game.
[00:38:34] Anthony: Alex’s story is super interesting because he started by building gyms. Like brick and mortar fitness gyms. And he did a really good job. I think he owned like six of them at, at the beginning. And, um, and then that became very like administratively hard from an overhead perspective. And it wasn’t like making great profit given how much time and energy it was requiring.
And so then he started pivoting to this other model where he was going [00:39:00] and launching other people’s gyms and that became its own. It, it grew, but it also had some pretty. Issues in his story, I would highly recommend somebody go listen to it. Cuz it’s fascinating. It has lots of ups and downs. And then he joined this mastermind with Russell Brunson who started ClickFunnels.
And he’s sitting down with the, the other people in this mastermind who are all coming from like a digital internet marketing world. And he’s the only brick and mortar person there. And Russell Brunson takes him aside afterwards and he is like, dude, you’re you’re in the wrong market. Like your problem is that you are pursuing a level, two opportunity with level 10 execution.
Like he’s like, you’re executing it. Great. But the level of opportunity is only a two he’s like, you need to be pursuing a level 10 opportunity. And he was like, well, what’s a level 10 opportunity. And he went back and he, and he figured that part out. And I will just tell you that cut to the chase there that.
Build [00:40:00] Jim launch. I
[00:40:00] Dan: think what made that a level 10 opportunity was that it was scalable. Exactly. He was in, was not scalable. That was that’s L 10, right? In this scenario, L 10, if you read traction completely different, but in this situation, level 10 equals scalable.
[00:40:14] Anthony: Yep. Scalable. Like what’s, what’s the potential upside.
And Steven Schwartzman talks about this in his book of what it takes about. Starting something small versus starting something, something that has the capacity to be small versus something that has the capacity to be big. They’re both gonna take up all your time. So whether you go start a grocery store or you go and start, uh, a tech startup, they’re both going to take up all of your time.
The only difference is what’s the potential upside of the one versus the other. And Steven’s point is pursue big opportunities because if you’re gonna consume all your time on something, it might as well be something big. And it’s the same with Alex. It’s a recurring theme here. Focus on level 10 opportunities.
[00:40:50] Dan: Mm-hmm so same with departments and real estate. It’s a big, it’s so cliche now, but we say it all the time. It takes the same amount of time and energy to buy a 10 unit as it does to buy a hundred units. So, yeah, that’s [00:41:00] true. Yeah. So I think that’s it. That’s all there is to the book. That’s everything don’t read it.
You’re done. No, this one, I would say, definitely go and read it. I know a lot of the books we’ve done were like, yeah, this is pretty much it. This is not scratching
[00:41:11] Anthony: the service. Guess how many reviews this book has on Amazon? Probably a
[00:41:14] Dan: lot. Cuz as, um,
[00:41:17] Anthony: we have just a for, for reference, passive investing made simple.
Has 82 reviews and I believe we’re in like the top 10 of commercial real estate investing. So if you guys want to go get us a hundred, that’s our goal. Get to a hundred, do us a favor. Please go to Amazon. Drop a
[00:41:30] Dan: review. That’s I’m gonna say 50. Oh. It.
[00:41:34] Anthony: Wow. That, no, that, so, okay. This, I have no context for this.
Yeah. This was a, this was a mistake of not setting clear expectations and bounding the , the operation. He made a very
[00:41:45] Dan: great task. I’m
[00:41:46] Anthony: thinking 50,000 is, would be ridiculous. Anyway, I think this is the number one book in business and it has like, he has 5,000. So you only texted it, but, okay.
[00:41:56] Dan: Yeah. Well, what is like, uh, uh, let’s say rich [00:42:00] dad, poor dad, like, look at what’s
[00:42:02] Anthony: rich dad.
Poor dad have let’s take a guess. Um,
[00:42:05] Dan: I’m so, so harm’s 5,005,000.
[00:42:08] Anthony: I’m gonna guess. Rich dad, poor dad, 15,000. I was gonna say 17,000 291, 80 2000. Boom. Okay. So.
This is interesting 50. This is interesting. 50 50 on a long enough time frame. You’ll get to 50. Wow. So that was amazing. Like on one end you way overshot than the other side. So I
[00:42:30] Dan: sounded real stupid for like 30 seconds. Now. I don’t sound that bad. I’ve just given them, you know, that
[00:42:36] Anthony: that’s 80,000, huh?
[00:42:37] Dan: 82,000. How many of those are
[00:42:39] Anthony: good? How many, how many reviews does the Bible have on Amazon? That’s my question. Like, I, I want to know what’s the most reviewed book on Amazon. Like the secret. 50 shades of gray. What
[00:42:51] Dan: you think most reviewed?
[00:42:53] Anthony: Uh, I don’t even know how we’d find this. Well, there’s not just like one, there’s a lot of Bibles.
Yeah, the Bible. [00:43:00] All right. The real one. The real Bible. Yeah, the original. Can we get, can we get first edition? I want it fresh off of Mac order off of the, who is the guy that created the printing press, um, gut Guttenberg, Johanna Guttenberg. Yeah, I want it fresh off the goin off the. All right. So I was gonna do it for us guys, uh, as always, we appreciate you taking some time to join us.
Remember if you want the, the notes from this episode and from the previous book review episodes, uh, shoot me an email. Anthony Invictus, multifamily.com. Leave a review, leave a review, please, please, please. Uh, of the podcast of the book, go review everything. Just
[00:43:34] Dan: click all the buttons on all of our platforms.
[00:43:36] Anthony: just spent the last like 40 minutes reviewing a book. I will tell you one of the life’s greatest pleasures is critiquing things. Truly. So I’m giving you, I’m giving you that opportunity. No critiques
[00:43:47] Dan: are negative, but make it good. Just sit
[00:43:49] Anthony: back and critiques. Nice talks, man. Yeah. Don’t don’t be mean I’m fragile.
All right, so that’s gonna do it first guys. Get outta here, camper on. We’ll see. In the next episode.[00:44:00]