The 5 Laws of Selling & Marketing

So in physics there's this concept that every law is a microcosm of another law. And what that effectively means is that for one law to hold true, the laws of another law must also remain constant. So in, so they can't, they can't negate each other. Like everything must be true simultaneously. Therefore, we should extrapolate this to the world of selling. So if there's one law in the rule of selling, it must also remain constant and remain the absolute truth in the presence of other laws. So at this particular point, if you don't know who I am, my name is Daniel Fazio on Client Ascension, own list kit, bunch of other low ticket products who make about $500,000 per month, have about 47 people on the team. And what I'm going to do today is try to instill some laws I've come across upon growing this small enterprise of ours. And I'm going to give you some lessons on how to sell more of your stuff so you can make more money, right? And the first here is the first law is that the prospect only cares about themselves. Right? Now this is very interesting because if you rewind 30 seconds, you need to take a note of what I just did here. So what I did was I, I, I shared with you my credentials and I told you why. Those credentials mean something for you, right? It was, it was the implication of those. So it was effectively me saying I did this so you can get this, right? It was the implication. People only care about what they get. You don't care what my credentials are or what I have done in my life. You only care, you only care about how those affect you, right? Which is totally reasonable. So what we need, what we need to be doing is what you need, you need to be doing is you. You'd be employing the same concept in your own business so you can sell more of your shit, right? So I want to give you a for instance of Client Ascension, right? So what is, what is Client Ascension? Help people do? It's Client Sense is a coaching program and we help people build an automated cold email system so that they can get more business, right? We help them create a content system that takes less time and gets more business, right? So content system so you can spend less time and get more business, right? Right. This is the implication, this is what you get, right? Help you close more sales calls so you can make more revenue, right? The implication of you closing more calls is so that you can make more revenue, right? Helping you hire and systematize your business so you can work less inside of it, right? So like none of this means anything unless there's an implication of it, right? So I was on a call for our list kit enterprise users today because we do some little coaching stuff for them because we want them to get really good results. And there were three advertising agencies on this call and all of their headlines had nothing to do with promising a specific transformation for their prospects that they're trying to sign as clients. It was always something like the best marketing consultants in the industry, some shit like that, right? And I needed to explain to them like, that's not a transformation. Nobody cares about you. They exclusively and only care about themselves. So what you need to be doing in the headline is explaining a specific benefit, a specific value proposition, or a specific transformation that they can get. For instance, how you can get 30 qualified calls in the next 30 days or you don't pay, right? That's a very specific transformation. And this is not a suggestion I'm giving to you because remember, we're talking about laws. This is a law. This must be true, right? And it will remain true in all of the following laws I'm about to explain to you, right? So your action item on this specific law is to take your offer and transform it into something of this Pattern X happens so you can get why, right? You being the prospect right now. Next, this is the second law. You can only charge money in direct proportion to your social proof, right? So here's a concept that you gotta understand. People like to buy things, right? And in particular, people like to gamble, right? But they like to gamble when it's very clear that they can get a substantial return, right? So what, what does this mean? So someone comes to your website, they, they read a cold email from you. They, they, they stumble upon your existence in any capacity. What they're going to do, what they're going to immediately do is, is a form, a little calculation in their mind, right? It's going to be, what are you promising me? Like, how big is the promise multiplied by. What do I think the probability? I actually get this is, right? So it's literally like just an equation. It's the possible return multiplied by the probability. The probability it happens. That's the calculation people are running in their mind. So what we're, what we're trying to do here is what, what we're talking about here is how do we increase both of those variables? Because if it, because the, it's multiplicative. So if one goes up, it's a leveraged return. You see what I mean, so you people derive the possible return based off of the previous law we spoke about, right? The promise transformation and also the depth of your case studies, right? Because your headline of the website is promising a specific return for somebody. And then you have social proof and case studies. What was the return that other people got? Those two variables make up the variable, the possible return in the equation, right? Now we have the other variable, which is the probability it actually happens, right? So the probability it happens variable is derived from the quantity of case studies you have right? Now, Past performance is not always an indicator of future performance, but that doesn't, that, that doesn't flaw a human mind from being, being of the certainty that if you have more case studies and testimonials, the probability that's going to work is substantially higher. And, and, and you can, you can imagine this based off this concept of a screwdriver. So I had to purchase a screwdriver, well, one time, right? So I go on Amazon and I'm looking at screwdrivers, right? And there, there's one screwdriver, it was like $6. It didn't have a lot of reviews. It was maybe like nine reviews or something. And then there was another screwdriver. It was like, it was like $12. It was like 4, 000 reviews, right? I bought the more expensive screwdriver, right? Right. And now this is interesting because what could possibly go wrong with the screwdriver? Because all, all I'm trying to do is mitigate the loss. Like I want to purchase the screwdriver for the function of screwing things, right? It, it, it couldn't be more simple of a contraption, right? Like, what could go wrong with it? But the power of the social proof is so substantial that it made me pay double the price for, for a loss or like a fault in a screwdriver that I, I can't even conceive what happened, right? This is why, this is why if, like, you're a beginner and like, even if you're asking to work for free for some people, people don't take you up on the offer, right? Because there's zero reviews like it. Like, like the offer is the, the, the whole, the whole idea of working with you when you have zero clients is in fact so bad that people wouldn't even pay zero dollars to do it. Like it's that substantial. Like, this is how much this matters, right? Which brings you to the next logical question. Well, Daniel, what do I do if I don't have a bunch of case studies? Which brings Us to law number three, which states that if you don't have case studies, you must have a risk reversal. You must, this is a non negotiable, this is not something to debate upon. You must have this right. So social proof, as we just previously spoke about, is the most important variable. In fact, it probably takes up roughly 80% of if somebody is going to purchase your stuff or not. Is the social proof that it's that substantial of a variable right? Now therefore, if you don't have that 80% of the equation, you can only operate in the 20%. So half of the 20%. So 10% of the equation is the promise transformation you're promising somebody and then the next 10% is the risk reversal. Like you need to imagine what a risk reversal is by the quite literal sense of somebody saying, okay, you're promising me this. What if it doesn't happen? That's the risk reversal, right? There are two kinds of risk reversals. There's, you work on a performance basis where you only get paid after the transformation or the result occurs for the clients, or a money back guarantee where you get paid up front first. And if the result isn't a, doesn't occur, you have to refund them. Typically I recommend people to do a performance basis because it's actually, it's, it's less risk for the client. And if you happen to be substantially good at what you do and drive it like a massive amount of business, you can, you can make good money right? Now here's the thing. You want to, you want to have case studies, you want to do performance basis until you have case studies, right? Don't stay on a performance based offer forever. Now I'm going to get into this in Law 5, but in order for you to understand it effectively, you must first know law number four, which is transfer away the logistical intensity, right? So first we need to, we, we need to define what logistical intensity means. If you, if you sign a client, you must fulfill for the client like the, like the work, the raw labor for them to get. The result must occur and it's either you doing it or it's them doing it, right? So in the beginning, because you have no leverage, you must do most of the work. Now the problem when you start having 30 clients or a hundred clients, that's a shit ton of work, right? Now what that means is that you can't scale as fast as you can generate demand, right? It's hard. You have to hire a bunch of people, you have to deal with those forms of variables. And this is exactly why. You see someone start an agency and then they start a course or a coaching program and then they start a software company. Why? Because it's transferring away the logistical intensity from themselves and putting it back onto the client or the customer. Do you see what I mean by this? If you start an agency, it couldn't be any more logistically intense. It's the most logistically intense service business that you could ever run, ever. Then you start to make coaches coaching programs and courses using the case studies and the credentials and the expertise acquired from running the agency in the first place. And why, why have you ever, have you ever asked yourself why do people do that? And the answer is because they're transferring away the logistical intensity. It's easier to scale it. It's that simple, right? And then you also see somebody who runs up a coaching program or a bunch of courses, they start to make a software company because that's even more, that's transferring even more logistical intensity away. You see what it's, it's, it. There's a lot of billion dollar software companies. There are zero billion dollar agencies. Maybe a couple, right? You see how this makes sense? And, and you might ask yourself, and this, this is always interesting to me. People, people will say things like, yeah, yeah, all these people making, to quit their agency and make the coaching and the courses. I'm like, that's the fucking correct thing to do. Like, it's, it's, it is the economically correct thing to do. It's so funny if, if, if you have the credentials and somebody asks to pay you for coaching or asks to buy a course from you, sell it to them. Like people, I, I've been asked sometimes like, why do you have courses and why do you have a coaching program? Like, because people buy it. Look, I obviously wouldn't have one if people didn't purchase it. Like it's that simple, right? Like, so if people want to buy it from you, sell it to them. Like, what are you doing? Right? So now as you acquire social proof, you need to begin shifting parts of the work away from yourself to the client. Right? Now this is actually a spectrum. It's not just like agency and then like it just is coaching perfect. You can, you can operate on it's very sliding spectrum, right? Like hybrid offers and shit, right? So let me give you for instance, it's, it is easier to get a full service performance based done for you agency from 0 to 20k per month. But it's easier to get a productized service where most of the labor is executed by the client from 20k to 100k a month. The more logistical intensity that you hold as the seller that you will do, the more of the work you will do, the easier it is to start, but the harder it is to scale. You see what I mean? This is why making a software company is so hard to start, right? It's to take a software company from 0 to 10k a month requires an absolutely substantial amount of expertise in terms of just development and like the sales process for it. So, so it's the easiest to scale, but it's the hardest to start. An agency is the easiest to start, but the hardest to scale in a coaching program and courses are in the center. See what I mean? This is how this works. It's a sliding spectrum. So now the next law, law number five is to transfer away financial variability, right? So I'm gonna throw these in two buckets. You, you have retainers or subscriptions or you have performance based pricing, right? There's the two ends of the spectrum, right? Everybody thinks they want to go to performance based pricing after they get one really good client. Like let's, let's say you, let's say, let's say you had like a retainer client, they're paying you like $3,000 a month and then like one month you happen to make them like a hundred thousand dollars or damn, if I just had a 10% performance fee on that, I would have made 10,000 instead of three, which is a totally reasonable thing to be thinking, right? So now what happens in, during this situation, you're like, like that hurts you. So internally you're like, you know what, what I'm going to do, I'm doing performance based. Now the problem is that by, by allowing yourself into this thought chain, you Forgot about the nine other clients you worked with who made $0. Not, not even always from your own fault, but due to the raw nature that nine out of 10 people have a dog business in the first place, that's just impossible to get results for just due to the raw infrastructural nature of, of their company and, and, and, and their own incapability to run anything efficiently. You see what I mean? So like for instance, do you know how in this video I'm explaining like laws to you like this must happen for you to sell, right? And like the first one was about a promise transformation, the next was social proof, the next was having a risk reversal. Now what do you got to understand is that I'm giving you advice for your company right now. It also applies to your clients. However, if you haven't worked with a substantial amount of clients, it's hard for you to conceptualize this like what will happen. Typically if you're a beginner or if you haven't worked with a lot of people, you'll see like some company, oh, this is like a nice website that must be really big or they have 30 employees and they must be, this is how this works. If they don't have a promise transformation, case studies and a risk reversal, it's a dog business. Look, it just fucking is. It's a law. So the problem is that you found the 1 out of 10 client who happened to have the promise transformation, the case studies and the risk reversal, you got them a shit ton of results because they followed the laws. But you forgot about the nine other people who you worked with who didn't get results because their business sucks. Now what would have happened if you were charging performance basis while you were working with those nine clients? You would have been evicted for your house and starved because you made $0 because they have a dog shit business. So what happens at scale is you just, you cannot escape the dog shit clients like you. You can't escape that, right? And, and when you tell someone to put a promise transformation, case studies and a risk reversal and, and, and, and you can, you can tell them to do this a million times, but they're still going to drag their feet. The problem with this is that if you're a performance basis, you make $0 while they're dragging their feet because they're not following the laws. So in order for you to scale, you have to transfer away the financial variability. What I mean by that is as you get the case studies, you start on a performance basis. That's step one. Then you get case studies, then you go to retainer. Now I have had close to a thousand people come through client ascension agencies, B2B companies, consultants, and I see their offers, I see the financial state of their business. I know exactly what's happening in these bitches. And here's what happens when you do this right, you start a performance basis and you're gonna get stuck at like 20k a month, right? Might take you like some people would take like a year to get there. Some people, they say four months. Right? Now you will be stuck there until you charge retainer. Here's the thing, gotta understand if you're charging a performance based like a revenue share, this is, this is what I'm referring to when I'm saying Performance bases, revenue share. You, let's say you're generating the leads for them, but you have like no say over, over the sales ability. You have no say over the production of case studies and the client success, right? Like and, and the, the revenue of the company depends upon the client success and the sales team. But you have no say over that. And your compensation is tied to it. You might as well be an equity holder in the business. The problem is you can't be an equity holder in 30 businesses. Like, well, you can't because it's like 30 jobs. It's stupid. It doesn't work. It doesn't. And now what happens is you can get these performance based things up to like 100k a month. And then like you start to hate yourself because you work like 16 hours a day. Now I'm gonna give you a caveat on this because sometimes it is better to, to be performance based, but it's only for a very particular kind of person, right? It's, you should only charge performance basis if you have access to the best possible clients. Now here's a little trick for you. You are not going to get access to the best possible clients with cold email. It's not happening. They're gonna come through a referral. You're gonna meet them somewhere because you're networking in the industry. This is how this happens. Like I talked about this in a previous video. Like a guy like Jeremy Haynes. Jeremy Haynes runs a performance based advertising agency. Right? Jeremy Haynes probably rejects 99% of the people who want to work with this agency. The reason he can do that is because he knows what a good business looks like. And his credentials are so profoundly massive that the magnificent businesses will actually entertain working with him in the first place. But you like, you haven't even been doing this for like three years. They're not even going to entertain the concept of working with you. Like, you're just not even remotely on the level of what they're interested in. But if you are somebody with substantially massive credentials, then you can do that. That's fine because like you're gonna have to reject 99% of people if you're gonna operate on a revenue share like this is this. If you know what you're doing, you can do it. But the problem is a lot of people who don't know what they're doing think they know what they're doing. So like just, just, just, if you, if you're not sure where you stand, just listen to me. You started a performance basis until you're about like 10 to 15, 20k a month. When you get the case studies you go into retainer. Just follow that if you're probably 99.9% of you watching this aren't aren't a Jeremy Haynes Right. So I wrote an email about these five laws today. It was on my email list and you can join the email list where I send very good emails@clientessension.com the link is in the description. What you should also do is go watch this video right here and that's it for me today. I love you. Goodbye.