Zero interest rate phenomena

Today we are going to talk about zero interest rate phenomenons. Now I'm going to give you some examples of some zero interest rate phenomenons. But first we have to define what exactly this is. So quick economics lesson for you. When the federal Funds rate is 0, it means that you can get bank loans, mortgages, credit cards for an extremely low interest rate. And in particular the way that this normally hits you is companies themselves are able to raise a lot of debt. And what that means is they have access to capital. It also means that they hire a bunch of people. Right now, a bunch of people have jobs, they have a bunch of money to spend on things that you might be selling, right? So I want to talk to you about the wildest economic phase of all of human history. And that is between the end of 2020 into about 2021 and now this. Some was going on here, and I'm explaining to you what was going on here. One, we had crypto hitting all time highs. We had the stock market hitting all time highs. We had everybody on the planet being able to raise debt at absolutely bare minimum, bare minimum rates. And we had stimulus checks. Now the stimulus checks started dropping at around the end of 2020. And what happened here, which is very interesting, that was very conveniently located in, in the flow of funds here, is that I hit my first $100,000 per month in November 2020, right after the stimulus checks drop. Now do you remember people buying these fucking. They're going to. The stimulus checks were like $600 in Best Buy and Walmart were selling TVs for precisely $600. This is what people were doing with their money. There. There is no time in human history where more people had more money than they ever have before. There was such an obscenely high degree of liquidity here. Now what this also meant is because the stock market started going up. So everybody who had assets had their inflating. The real estate market was going up. Everybody who had real estate, their shit was increasing. If you had crypto, you were making millions of dollars. Everyone else is getting fucking stimulus checks. Everybody had money and consumer confidence was so wildly high because the velocity of money was so high. So everyone, even though they had money, were under the imposition that they would have money forever. Therefore everyone was spending the out of it. What that meant was that if you existed or were selling anything in between the times of 20 to 2021, it was extremely difficult to not make money. Fucking everyone had it. Everyone bought anything for any reason. They did not give a singular fuck. Now what this meant is it gave rise to the zero interest rate phenomenons. And I'm going to give you some examples of zero interest rate phenomenons. The first is avocado toast, right? So I don't, I don't see many talking about avocado toast anymore. That's because interest rates are not zero anymore, right? So what did this mean? It meant that you would go to whatever the cafe and you would purchase a piece of bread with avocado spread on top of it for $10. That is a zero interest rate phenomenon. I have not seen a singular person talk about avocado toast in like a year since interest rates were zero. No one buys avocado toast anymore. Now next is if you're selling right in 2020. That was, that was when my cold email agency was, was running. I was doing cold email for a bunch of stuff. And now what happened was I was able to get, I remember there was this one dude and he was running an e commerce email marketing agency. And I spun up a cold email campaign for this guy. He had like no content on the Internet, like not a very particularly good value proposition and like no guarantee, like very minimum case studies. I was booking this dude, it was like a, it was like a 15% meeting book rate or some shit. I'd send a hundred cold emails and book 15 meetings. That was so disgustingly efficient. It was, it was so wild, right? And now this the reason why and people were buying this shit and people. No one gave a fuck. No one gave a fuck. If you had no video sales letter on your site, you have, you have no value proposition, you have no guarantee, you have no case studies or evidence that it even worked. No one gave a fuck because we were in a zero interest rate. People just were making a shit ton of money. They didn't fucking care. It was like the demeanor, the demeanor of this was if I pay this dude this money and it doesn't work out, whatever, I'm just going to make a bunch more next month anyway, right? Everyone had money. You could get away with absolute dog, right? So here's another one. Drop shipping is a zero interest rate phenomenon, right? So I've been in this Internet money game for a very long time now. And now what happened was dudes would do drop shipping and like that was the business. It was always drop shipping for forever in infinity. Now I see people like dudes like buy a, buy a hea. He's really good now what he says is like, you want to prove something out by drop shipping it and then Build a brand off the back of it. Which is correct. In a Z, in a. In a. In a higher interest rate economy. That makes sense because people aren't going to buy dog like they're going to get more upset about losing money than they were before because they are not as confident in their ability to have money flow towards them. Like the money means more because there just is less of it that exists now. Drop shipping is a zero interest rate phenomenon. It just, it just is. Right Next. Not working a sales pipeline, right? Here's the thing. When I was sitting here getting 15 meeting book rate for dog offers on a cold email campaign because everyone on the planet had money, right? It, it didn't matter to follow up with people and like work the pipeline and like follow up with. Only it didn't matter because they're like the, the raw onslaught of like substantial volumes of business just flowing so easily with, with, with so little effort. It was, it was in sane. It. It didn't matter. Like it was like who gives a. It's. It's not even. Was just right. Here's another one. High ticket closing as a biz op is a zero interest rate phenomenon. That, that's the thing, right? So here's the thing. High ticket like a biz up for high ticket closing is the most cooked offer I have ever seen in my entire life. It is, it is so crazily cooked. It's. I, I've never seen something like a biz op like I've seen drop shipping. I've seen starter agency. No code is becoming a thing now. I've seen E comm email marketing. I have never fucking seen something so wildly cooked besides become a high ticket closer. And a couple months ago I went to the Clickfunnels event in Orlando, Florida and there's a bunch of people and they all wear their like company logos and shit. And, and I kid you not, it was. It. It was so. It was so absurd. I see. I see. Best Closers.comHigh BecomeACloser.com Turbo Closers.com Every person there was selling become a high ticket closer. As a biz op was so insane to me. I was like what? Why is everyone on the planet selling become a high ticket closer. Now here's what happens in this market. One, the supply of high ticket closers has been substantially fucking increased. Right? And I know a lot of these fuckers, they had their, their revenue capped in like late 2021. They can't get past it. One, because of competition. Two, because we're no longer in a fucking zero interest rate phenomenon. So, so here's the thing. You can't have a dog shit offer anymore. Like that, that's, that's not a thing. And even, and I'm not even saying like, oh, you have a good value. You have, you have, you have, you have a guarantee or you have cases. Doesn't even matter. It's that, that, that is so cooked. It's so cooked because the person you're selling it to, B2C, you're selling a B2C bizop. The B2C, they don't have money anymore. Their credit card is maxed out when they, they're getting approved for less loans, right? They're, they're, they're buying less cars. And like, like the, the flow of the velocity of money here is like slowing down while simultaneously so like 30, 000 people on the planet are selling a B2C biz op for become a high ticket closer. It's cooked. That is a zero interest rate phenomenon. Dog offer that offer. Next. Not caring about customer experience, right? So like I was saying earlier, it, it didn't matter, like if you like, say you were like a SaaS company and like your churn was so low because people would look at their credit card statements and not give a. About the recurring service. Oh, it's not even worth it to go try and cancel. And they just left this on. No one gave a. Because everyone had money. And, and, and you know, this flipping is occurring right now because I've been seeing ads for Rocket Money. And when Rocket Money has a product for auto canceling subscriptions. Now, I, I didn't, I didn't see that. I was not seeing auto subscription cancellation services in 2020 and 2021 because it wouldn't have worked in 20. In 2021, because nobody gave a. Nobody gave a. About whether the auto charge came. I didn't give a. I was like, whatever. Who gives a. It was hilarious, right? All right, so next. Charging obscenely high prices, right? So here's the thing. You're, you're gonna. There was this, there was this flipping that happened. It was somewhere in like, I remember courses. Like basically all courses were. They were anywhere between like 99 and like 300. And then the Sam Ovens of the world started coming around, and Sam Oven was only charging like $2,000 for his stuff, which was considered high ticket in like 2017, which is very interesting. But then you, you, you had other people coming onto the scene and they were telling you, charge high ticket, high tickets. The Way to go. High ticket is the way to go. And people started charging like Instead of like $300 for a course, they started charging like fucking $5,000 for a course. And then they started making high ticket coaching programs and charging like 15,000 and like $20,000 and $30,000 right? Now here's the thing about that. Pretty much everyone on the fucking planet is going to buy that either on a payment plan or finance it. This is also why there's a ton of high ticket coaching program financing companies. That's how you know we're in no longer in a zero interest rate phenomenon environment. For anyone to afford anything high ticking up it, it, it must almost exclusively be financed. I don't even like giving financing to anyone. I just, I just don't do that. Right? So here's the thing, here's, here's the gist of this. You are not in a zero interest rate phenomenon I anymore. Specifically December 13, 2020 23. So what does that mean? It means that the you sell has to be substantially better than it ever has before. Because let's not make a mistake about this. You like if you're selling something, maybe you're an agency, you're selling a, like a B2B service or maybe you're like a coaching program or you're selling a course or, or some, right? You can no longer get away with having zero content on the Internet, not having a good product and having good testimonials and reviews and good case studies, right? Not, not having a video sales letter on your site, right? You, you can't get away with this in, in 2020 and 2021 people were sending cold emails with no website and signing clients. It was, and it was, and it wasn't just exclusive to some like some specific offer like oh this, this offer is really working right now. Everything in 2020, in 2021 worked. Everything. You, you, you had to try to lose money. You had to be a complete dumbass to not if you were running a business in 2020, in 2021, you had to be a fucking dumbass to have not hit an all time high. Like you really, you really have to have attempted to fuck that up. That's how that works, right? Now let me explain another concept to you. And this is going back to working a sales pipeline, right? So what do you have here is, let me give you for instance, let's say like you spend money in ads, right? And let's say you put them through an opt in funnel. So it's like someone has to opt in like name email, phone and that would be a conversion event called lead. Right. And then what you're trying, maybe it's like a VSL funnel and you're trying to get them to book a call. And that conversion event for someone booking call would be book a call. Right. So what does that mean? If you're doing it like a relatively high spend like on YouTube ads for instance, you're probably going to look at something like anywhere from like $10 to $20 per lead per opt in if it's like B2B and then about 200 to 300 per qualified call booked. Right. So there's some maneuvering and shit that you can do to make these numbers work in your favor. One of them is when you get a lead calling them and texting them. If this is done properly, typically you can get about 30% more calls booked. What that effectively means is that the cost per call will go down 30%. And a 30% differential in that price is the difference between you being able to scale and you not being able to scale. So 2020, 2021 didn't matter. You didn't have to have that because everyone was buying it just. It didn't matter was if, if you weren't selling something. It's hard to describe if you weren't selling something during that time. It was absurd. I had a course, I did the, the, the 1.0 version of cold you on Mastery. I was selling that for like $75 I think it was around there. And I was doing, I did a Black Friday discount. Did like $32,000 in a single day on like a. It was like 75 or something like that. It was hilarious. It was so everybody on the fucking planet had such just, just an absurd amount of capital. Then a ton of shit ton of people made money in crypto. Everyone exposed to any stock made a ton of. Everyone had money. It was truly astounding. It really was. It was, it was a great time to be alive. Those are the good days. Right now you can't afford to do that. Right. So like our operations our is very hyper efficient now because traffic like on ads or, or cold email, it's all more expensive now. So that cost is going up. So if we were to take two variables here. Traffic times conversion rate equals sales. The the only like the, the, the amplified the leverage piece here is working on the conversion side. What does that mean? It means talking to your leads more and making more of an effort to talk to them. It's doing more long term follow ups it's sending emails, like, value driven stuff. It's posting content on the Internet. Because all of these interchange together, right? So a lot of people say, well, ads work better than content. Or, I like content better than ads. Listen, your fucking content makes your ads work better, and your ads make your content work better. It all. It all cohesively pull these together in one ecosystem. This is how this works, right? Now, the problem you'll have if you keep believing you're in a zero interest rate phenomenon is to not focus on the conversion side, which is precisely what you should be doing. Right? So if you have questions, comment them down below and then go watch that video, that one right there. All right. Love you. Goodbye.