Why rejecting clients will make you 10x more money

Not all clients are made the same. And if you run an agency or a B2B business, you know exactly what I'm talking about. You get the client and they're complaining. You get a category of people who are the most miserable humans on the planet to interact with or work with in any capacity at all. And it always works in a Pareto distribution. So right now, you running your business, 20% of the people that you work with are taking up 80% of your time. And those 20% of people who are taking all the time are only paying you 20% of the money. And the people who are taking none of your time at all are paying you the most money. And this is how literally everything distributes in life. So what does that mean? When should you reject a client? Because that is where this issue is actually stemming from in the first place. So I'm going to give you some base hard rules that you are not allowed to break at all ever in your life. Because if you break them, I absolutely promise your business is going to slowly degrade. You're going to hate yourself. You're going to think, why am I not able to get the client's results? And then you're going to quit the business. You're going to go get a job. Everything's going to get all screwed up. It's going to suck. If you don't know me, my name is Daniel Fazio. Just last month we did $688,000 in cash collected. So signed just over about. It was about 120 clients across a done for you offer, SaaS, consulting and most of them were done for you absolutely ripping like $5,000 a day in ads right now. I think we booked close to a thousand sales calls just last month. We've got I believe 9 full time closers right now. So there's a whole lot of shit going on here. What that means is that we got a whole lot of clients we've talked to that I've specifically instructed the team to under absolutely no circumstance sign these people out all over because I know exactly what's going to happen. It will destroy the business entirely and it would you these base hard rules today so you can implement it yourself. I'm in a random Airbnb right now, so forgive me for the environment. But let me talk about this concept real quick that you need to fully ingrain and understand. You will have someone come in. This is the base case. With every single person you're going to get one out of five people you sign and they're going to be impossible to get results for in the first place. So if you're more towards the beginning of your career in your business, because that's what it is, it is a career. You've maybe signed 5, 10, 15 people up to this point and you got some horror stories already. And now I want to let you know that this is a very normal thing to have occur, however you can stop it from happening. You know this concept, people say you can't have your cake and eat it too. Well, sometimes you actually can have your cake and eat it too. But that requires a sacrifice. What is that sacrifice exactly? So I want to tell you a quick little story that happened to us. So we're running, as I said just a minute ago, about 5000, anywhere from 5000 to $6000 a day on ads right now. So what's that mean? It means we've got hundreds, hundreds of people coming in every single week. They're interested in our stuff, they to learn more. And a lot of people want to get started now. But specific set of those people are rejected. Even if they have the money. This is very important concept for you to understand. It's even if they have the money, you do not take the money. Why is this? Now let's do a hypothetical here. Let's say that you're a lead generation agency and you're doing lead generation of any kind. Maybe it's you're doing cold email for clients, or you're doing LinkedIn outreach for the clients, or you're doing ads for the client. Right now if we were to take a distribution of all your best performing clients, and I'm talking to people who have turned into case studies, who never churn, who pay you more money, who upgrade their packages and pay even progressively more over time. What's the commonality between these people? And we can map it pretty clearly as to what's going on. The first base case is that I absolutely, positively assure you that when you originally signed them on as a client, they were already successful, they already had a good business, shit was already going on, they had something else built out. They had a team, maybe they had a sales team, they already had case studies, they already had a bunch of client work done, they had content on the Internet, they were already relatively a figure of authority and there's a lot of stuff for you to work on. And they tended to be somebody easy to work with because if you requested some form of asset from them or even some kind of quest that requires any labor from them whatsoever at all. They typically do it very quickly. Right. Now let's compare this to the other kinds of clients that all of your horror stories are probably originating from these clients. They don't have case studies, they don't really have a lot of clients themselves. They don't really post on social media. They really kind of don't even know what they're doing. And the problem with this is that especially if you're a beginner and you haven't taken hundreds of sales calls up to this point, you can get completely psyoped by these people. You can talk to them, they can have a nice pretty looking website and they can look like they're a successful business. But I want you to know that these people are pulling the same scam as the dudes who rent the Lamborghini and rent the penthouse in Miami. And they act like everything's all. They rent the mansion, they act like they bought the mansion. That's the same scheme going on. They look like they are significantly bigger than they are. However, the foundations aren't there and it falls apart very easily. So what am I getting at here? What I'm getting at is that these people don't have anything to work with and they are impossible to get results for in the first place. Now here's the problem. When you sign these people because they'll get on a call and they'll say maybe they'll haggle you back and forth for some discounts or some shit like that, but sometimes they do have the money and then you take their money from them. And now this is their world because they don't have a lot of money. So what does that mean? It means that they're going to be up your ass. And because they don't have any foundations to work on in the first place, you can't even get them results. And when you can't get them results, what does that mean? It means that you get frustrated and you start to doubt your ability as a service provider and your ability to deliver good results and customers happy. And when you start doubting your ability, that makes you start pulling punches in your lead gen. It makes you start pulling punches on your sales calls. It throws you into a scarcity mindset because maybe this person starts asking for a refund and now you have to give this person a refund and you don't want to do that because you did everything right that worked for somebody else, but it's not working for them and this person's a complete dickhead. Why is this happening and the reason the Fundamental thing you need to understand is that the biggest mistake I see with so many of you guys, because I coach so many of you guys in client ascension, I see it constantly over and over and over, over again. You are not qualifying your leads. And if we were to take it just a base structure of how a sales call is supposed to elapse in the first place. What occurs immediately upon a sales call beginning it's discovery, it's can I even help you at all? You see what I mean? Now what does this require? It requires you actually discovering new material. So what would that entail? It might be, and it is you asking, how much revenue do you make? How much money does your business make? And if they're going to sit here and finagle, fuck around like, oh, oh, well that's a personal question. Done. No, can't work with you. This is literally a financial arrangement. Like the entire function of me working with you, help you make more money. And if you're not even going to share with me how much money you make right now, this definitely isn't going to be a good arrangement at all. So that's the first situation that we can take care of. The next situation that we need to take care of is when they do share it and it's a substantially low number. So what you need to do right now is need to go find out all of the clients you have right now and all the people who you have got the best results for and I guarantee you absolutely every single one of them, with zero exceptions at all, all were at least at $10,000 per month before working with you. And even that is low if you're selling a done for you offer. Every single person that you got results for is 100% certified, was already above at least 10k a month. They were already a six figure business and they already had assets to work with. Now what does this mean? It means that if you get someone on the phone and they're making 3k a month, they got one client right now. Like, yeah, I'm just looking for something to scale. You know, I just want to get this up and you say okay, well my stuff is 3k a month, whatever. And then you take their money, it is going to be impossible to get them results in the first place. Here's what you're going to say to yourself now, but I need the money right now. Like I want to grow revenue. Maybe you got some expenses coming out. You're like, well some of these calls I could just get some money from. And listen you know how there's this stat, there was a study done by Tinder or Match Group or something like that, and it was saying something like 10% of guys get 90% of the matches right now. What does this mean? If you go hop on Tinder or Hinge or whatever and you go make a profile and you as a dude are getting like hundreds of likes, what does that mean? It means that you have your pick. You have your pick of the litter. You can just pick right now. A fact of life is that this thing, this as above, so below kind of thing, in order for you to be a successful company, you have to do the activities that somebody who is already successful would otherwise do in the first place. So like me, for instance, I'm not going to sign someone who has no clients or only has like one client, had like no idea what they're doing. I'm not doing it even if you have the money, because I know this is not going to be a good relationship. Like, I don't like you. I'm out of your league. And you watching this video right now are out of a lot of people's league. However, you're operating in the scarcity mindset and you don't truly understand your worth because a lot of people you've had a relationship with up to this point have treated you like shit. Like your business, like shit. The commonalities between interpersonal relationships and client relationships, the similarities between these are unfathomably uncanny. It's so directly correlated, it's actually insane. So now let me give you some stats real quick. Our 5,000, $6,000 a day in ad spend, I run them through an application funnel and what I had done is we were normally letting people in. If they selected that they were below $3,000 per month, we would let them schedule a call. If they said that they can pay $2,000 to start. That's what we were doing. So now here's what I did. I changed the application to completely reject every person below three camera. You are not scheduling a call with the salespeople. If you are below 3k a month, you're not doing it. Like maybe we can talk over email, but you're not scheduling a call with salespeople. It's a waste of time. What happened? So we were having a cost per call of it was somewhere in the range of like $150 by letting anyone book in. And then when I changed that to the people below three came, it shot up to around like 250 to 300 and like is ranging in there so substantially more expensive, like almost double the cost per call. Now you're like, wow, that's a lot less calls and you would probably make a lot more money if you took the calls. Now here's what actually the close rate shot from like 20% up to, I shit you not, 35%. And it just ranges between 30 and 35%. What this also did at the same time, because we're not talking to completely broke people constantly all the time. The average order value also increased and the churn rate decreased. So yes, the cost per call was higher, but the amount of those people who close like that went up 50% from 20 to 30. That's a huge increase. Also average order value goes from like $500 a month up to like 800. So like a substantial increase, like 60% increase. Churn shoots down, but like that, that goes down like 30%. So all these work together in the absolute perfect synchronicity. And the cost to acquire a customer went down from like $2400 to like you had a really good week. In one week it was like $1200 that we signed. We signed like 30 something people in a week at $1200. It was actually insane. Now the next thing you need to understand is that if you're not getting this volume of people coming in or like hundreds of leads or hundreds of sales calls coming in all the time, you need to start understanding that the only resource in your life that is scarce is your time. A lot of you guys have money scarcity, you need to remove that from your head. You think leads are scarce, you need to remove that from your head. You think sales calls are scarce, remove that from your head. You think paying clients are scarce, you need to remove that from your head. The only thing that is scarce that you need to have a scarcity mindset with is your time. Now how does this equate? What is my instruction to you based off this assumption? It is more efficient. It is a better productive use per hour of your time. And if you have a team, their time, if they do not spend a singular minute talking to anybody who is unqualified at all, it would be a better allocation of time to have less qualified leads, but more follow up activity per lead of the ones that are qualified, every single financial metric is going to improve. And not only these front end metrics, here's what else happens. All of the people you do sign start to get way better results. Way, way, way better results. What does that mean? It means that you get to make a bunch of case study videos and you can post them on YouTube and you can host them on a landing page. And when you're on a call with someone else and they want to see what kind of results have you got for other people, you can send them this page with a shit ton of case studies on it of people exactly like them who were thinking the exact same thing that they're thinking right now. But now you show them 35 people who got results. You see what I mean? This is what happens. But if you're signing the unqualified people, the rate with which you produce these case studies also decreases. So you have another rate in your business where it's like the client success rate. What percent of the clients we sign turn into a case study. And this is a tracked metric, right? So you want this metric to be way higher because the higher, the faster the rate that you produce case studies. That means the more sales assets you get and the easier it is for additional new people to close. And your close rate over a extended time horizon continues to increase and your cost per call continues to decrease. Because you're sending the leads. These sales assets. You see what I mean? It's just like, like this upwards spinning cycle just continuously over and over and over again, just spins up and up and up and up. Your whole life gets better. And all you have to do to make this happen is just don't talk to the fucking poor people. And that's it. That's all you need to do. You need to just. When you get on a call, you need to ask them, what is your revenue level? If you have a calendar, you need to put on the calendar, what's your revenue level? You need to have. You can put a big red banner above your calendar. If you are not above $10,000 per month, do not book a call. If you're below 10k a month, you book call, we will cancel it. You need to say that. You need to be very specific. You need to be very, very specific. If you instruct people who are low revenue levels to not book a call. If you say that to them directly and you do not beat around the bush. You are very specific with your words. Even though it might sound harsh to say that. It's like, well, I don't want to hurt their feelings, bro. Don't fucking worry about their feelings. Worry about your bank account, worry about your close rate. Worry about your churn rate. Worry about your client success. You can't help everyone. Like, you just can't. And when you understand that, when you fully ingrain that you can't help everyone, that is when you will start to grow. That's the only time you're going to start to grow. When you actually reject people who don't have a good business that you really actually can't get results for. I promise you there are thousands of people who are really, really good businesses who you can get really good results for and you can make a whole lot of money with a whole lot of less effort than you're spending right now. I promise you. And if you're an agency owner or a B2B business and you want a 44 minute training video on all the different ways that you can get clients, every single metric and a whole financial modeled out, that's the first link in the description. It's clientesscension.com I'll leave a link if you want to talk to me one on one. You can do that there. If you got some value from this video, please share it, subscribe, leave a like, leave a comment, whatever you want to see next. All right. I love you. Peace.