Avoid These Five Mistakes That Will Kill Your Business

This video is going to go over the five reasons that businesses fail and that people stay poor. These things are universal and will apply to varying degrees in small businesses all the way up to Fortune 500 companies. They're not necessarily revenue specific. So in the video you're going to learn three things here. You're going to learn what they are, why they are true, as well as how to solve them. So this video could actually be fairly important to you. So we're going to talk about these five reasons in depth so you know what they are. We will also kind of identify some examples of what they'll look like in the real world. We'll go over how they interact with each other because they're five separate problems, but they are in some ways adjacent to one another. We'll go over exactly why these are true in any businesses and what will happen if you don't solve them. And then we'll finish it off with how you would actually solve each before and after scenario at the end, whether you have all these problems solved versus not. And we'll go over the exact system and marketing funnel that you need to build to solve four out of five of these problems, at least. So let's get right into it. The five business killers are, number one, no one knows who you are. Two, not enough leads. Three, all clients come from referrals. Four, you have nothing to offer unqualified leads. And number five is yourself. And, and these will all get in your way to a varying degree. And these are the five main bottlenecks that will happen for growing your business. So let's get into these one at a time. So business killer number one is not enough people know who you are. It's kind of obvious if people don't know who you are, they can't buy from you. And this is the start of all other problems. If they don't know who you are, none of the other problems even have the chance to exist. So it's very important that we fix number one right away. Business killer number two, not enough leads is a big problem. Because even if people know who you are, that doesn't necessarily mean that they're becoming leads. And without leads, we can't make any sales. Number three, referrals are actually great. They're a positive indication that you have a great service. But you can't only rely on referrals to grow your business. Very unpredictable, very out of our control that way and impossible to scale and, and, or sell the business one day. If that isn't our, that's One of our aspirations, the fourth one is one of the worst in my opinion, and that is nothing to offer unqualified leads. Everyone always just offers their main service. And 99% of leads or subscribers that we get through our paid ads, our content or outbound, et cetera, aren't going to be qualified. Whether that's because of price, because of fit, they do it themselves or they want to know how to do it themselves. They already have an agency, they just don't believe in it. They don't need it. You know, lots of people come into our funnel that actually don't need our service. And there's nothing that we can do to change the fact that 99% of these leads we generate are going to be unqualified. The problem is that people don't have anything to offer them. And 99% of the leads go completely unmonetized. So it's a very big problem. And then the fifth killer might be the worst of them all. And most people's true problem is themselves. The other four can be fixed, and 1000x leads is designed to solve these other four. But the final one, really no one can solve that except you. If you can't focus, you have tons of limiting beliefs, you have poor work ethic, no skills, you're super unorganized, you don't do any planning, you're going to fail. And no, nothing is really going to change that. That's work that you have to do on yourself. And most of the time, this is the one that gets away or gets in the way, especially with smaller, to, you know, small businesses, but to all businesses at some degree. So let's go over with how these problems actually interact with each other and what they might look like because they are separate problems, but in many ways they are all related. And if you solve one, you're kind of solving another one. And the opposite is also true. If you have one, you're typically going to have another one. So let's go to over here. Let's see how problems number 1, 2, and 3 all interact with each other. And this is a positive way, but also a negative way, you know, depends on your situation. So if you solve problem number one, where you are getting a lot of attention, people who are finding out who you are, and you're solving problem number two, where you're capturing leads, you're kind of solving problem number three by default, right? If you have attention, you're getting leads. Not all of your clients are coming from referrals anymore. But this is also the re because they're getting so many clients from referrals is typically the reason that they don't solve problem number two. If you're getting a stream of referrals, you know, why would you need to focus on generating traffic? Why would you need to focus on capturing leads? That kind of thinking is really what takes place in the real world and why these problems exist. But by solving problem number one and two, you're solving problem number three by default. Problem number one, two and four also interact with each other, and it's in a negative way really. So one of the best ways to get more people to know about you and therefore generate more leads is with paid ads. But 99% of the subscribers we get and the traffic we get from paid ads is not going to be qualified for our main service, right? Usually due to price. If we have Nothing to offer, 99% of these people who are unqualified, that's like essentially for every dollar we spend, 99 cents is automatically wasted. And this is very prohibitive to having profitable ads, as you could imagine. And problems number three and four typically go together. You know, if you, your main source of clients is from referrals, all of your leads are qualified, right? So you would never really run into the situation where 99% of the leads are unqualified, because that's just not how a referral works. Your client has a friend who needs what you do or whatever they recommend you. That person clearly needs, you know, needs what you do is interested and you know, presumably knows how much it costs. So there's no situation where if you're relying on referrals for most your clients, you would have, you know, even need these different offers for different levels of the market. But if you want to stop getting only getting clients from referrals and run cold traffic ads, content outbounds, you know, that is no longer the case anymore and it becomes necessary to solve problem number four. So that is how they all work together. And you can really start. You know, if you solve problem number four and you make all these offers, your ads are going to have a great chance of being profitable. You're going to be getting traffic, capturing leads, and not all of your clients come from referrals anymore. So you really can't solve any of these fully without solving all of them fully, if that makes sense. So these problems exist in any business that sells services like some of my videos. You can kind of get the idea that they're marketing agency specific. And while that's sort of true, it's not really any business, B2B or B2C who sells services and deals with leads. These problems will exist to varying degrees. So I have a few different points written down here. Like these are not revenue specific problems and they plague big businesses just as much as small businesses. Many people build very large businesses primarily through just having a great product or service and referrals and word of mouth. And there's nothing wrong with this. And it happens every day. But there is a degree of you meet these businesses doing 50 million, 75 million, 100 million and they basically don't get any stuff from cold traffic. They just have a great product or service that has a high ticket price and they've been in business a long time. And that might sound strange in this video, but it happens every day and you meet people every day. When you're kind of do what I do who situation like reflects this point. Number two is a lot of people will start their business and build their business through referrals. And as such they get a very unrealistic expectation or assessment of their marketing and sales ability. Because what works on referrals, which are the warmest leads possible, does not work on someone who's completely cold. Your cold offers need to be 10 times better than your referral offers. You really don't even have to have a referral offer at all. So because people, you know, all of their clients come from referrals and they tell you that they have, oh, I close every deal I get, or you know, everybody. I don't even need to market because everybody knows what I do. It's very unrealistic and it does not reflect actual reality. And this is one of the dangerous things about only building through referrals because it just really overestimates yourself in certain situations in certain areas. And like I said before, in many ways you cannot solve any of these problems fully without solving the others. For example, you just wouldn't be able to scale your ad spend and get more leads and attention if you don't have something to offer the 99% of leads that are unqualified. It just wouldn't work. Your ads would be too unprofitable. So it's very important that we look at these four problems and especially number five, which we'll get to at the end. It's not really four separate problems, but four symptoms of the same kind of, you know, you don't have cold traffic acquisition systems. That's the problem here. And these four are symptoms of them or reasons that that's true type thing so the 1000x leads funnel is specifically designed to solve problems number four. It's not really a coincidence that the funnel that I have in all these videos solves these problems. It's the other way around. It's specifically designed to do so. This funnel will solve problems one through four for you, but only if problem number five doesn't get in the way. Self limiting beliefs, poor work ethic excuses, all that kind of stuff are what is going to get you get in the way of building something like this for yourself, whether it's with a thousand x leads or not. Because if you just oh, I don't believe cold email works or you know, this takes too much time or whatever, any self limiting belief, any you know, excuse that you give yourself or me, you know, at the end of the day this can be built piece by piece with just by watching these YouTube videos if you want to. And this will solve problem number four, the paid ads, the content, the outreach, the partnerships that solves problem number one. Getting attention, your lead magnets, your email flows, your conversion mechanism solves problem number two of getting in qualifying leads. Like I said, those two things will solve problem number three. All your clients aren't coming from referrals anymore. Building your digital products, stuffing your lead magnets and email flows with affiliate links, having your program, your course, having relationships where you can refer out and collect a fee, and having a one time introductory offer in addition to to your recurring service that you've been selling all along will solve all of these four problems for you. And it's specifically designed for this. So let's get into it. Let's get to problem number one, where no one knows who you are. And it's probably an exaggeration to say no one knows who you are. But we'll say not enough people know who you are. So we solve this problem with paid ads, content, outreach and partnerships. If you start running paid ads, you post content every day on multiple platforms, you, you do cold email, you do prospecting, you do outbound, and you're making partnerships, people are going to know who you are after a while. And it's that simple. And that is the essence of problem number one, getting people to know who you are. And this is exactly how you do it when you have not enough leads. And problem number two, this is a situation where you might be driving traffic, you just don't have anything to offer them to get them into your email list, into your CRM, onto your funnel, that kind of stuff. So Once you add 6 to 12 lead magnets solving every single problem that has to do with your service. You make the email flows to nurture the leads. You have these different conversion mechanisms to determine who's qualified and who's not. Like, you've really solved problem number two. Like now you have enough traffic, you have enough leads in your system, and by default you've really solved problem number three, right? So problem number four is when you have nothing to offer unqualified leads, no matter what you do. Like 99% of people are not going to be qualified and 1% are, like I said, that's price, that's fit, you know, whatever. If you don't have this stuff here, like, you are just wasting out on so much highly profitable revenue too. Because think about it, you know, your services have like, you know, labor fees, software fees, all that kind of stuff. But if you refer someone or you sell them your course, or you sell them your program or info product or, you know, they use your affiliate link, that's nearly 100% margin, right? It's, you know, maybe you pay payment processor fees, but that's going to be about it. So even if you can get 30% more revenue or something like that, that's like 30% more profitable, you know, equivalent of profit in the funnel too, not just revenue, when that's not really the case for your main services here. So if you make different offers for unqualified people, you know, digital products, affiliate links, refer them away, whether that's to a bigger agency, a smaller agency, you know, someone who sells adjacent services that you know to the same target audience but aren't yours or your course or your program, you really can 2 to 3x your revenue and 5 to 10 extra profit just by having these offers. And that might sound, you know, hard to believe, but I'm going to do some math for you here. So this might sound good, it might sound logical, but yeah, makes sense, right? You know, I don't have anything to sell them, they aren't going to buy. That makes sense. But until you really see the math and a real example of, you know, A versus B, it's kind of hard to comprehend this. So that's what I'm going to do here. So we're going to have a real world example of a business. We're going to keep everything the same, except for the fact that the offers either exist or they don't. So the number of subscribers and leads, the ads, the lead magnets, the emails, the conversion mechanisms, the content, the partnerships, all of that is going to be the exact same with the only variable changing is the offers here. So version A was. Let's. For this, we're going to assume that we have 100,000 email subscribers. So someone who's come in through paid ads, basically, and downloaded a lead magnet and is on our email list like that is the assumption we're going to make. So if we zoom in here, we'll see that, you know, these 99% of people are essentially stopping right here. There's nowhere to go. And the 1% of people are going to go through, you know, our funnel, hit our website, book a call, and go to the recurring service or not. Right. Because we don't close everybody. That's just not possible. So let's do some math. And I got the math here. I'll zoom in a little bit. 100,000 total subscribers, and 1% of them are qualified. And this is, this is very important to understand because just because we have a thousand people that are qualified, that does not mean that we're going to get a thousand clients or a thousand calls even. Only a small percentage of people will even book a call. And 10%, you might think that sounds low, but it's really not when you take into account the note shows, the cancellations, the, you know, not a good fit type stuff. So 10% of people qualified is. Might be even a bit generous here. So 10% of qualified leads book a call. That's 100 total calls with cold traffic. You know, our close rate is not going to be as high as referrals if we assume that we have a 25% close rate. Easy math. In this case, 25% of 100 is 25 clients. If we apply a $10,000 net lifetime margin per client, that is basically means we're making $250,000 margin from this, from these 150,000 subscribers or 100,000 subscribers, sorry, whether this is over the course of a year or three months or whatever, that doesn't matter. This is an example. If we just can assign that we'd have to pay $5 per subscriber with Facebook ads, for example, times 100,000 subscribers. That's $500,000 in ad spend. So we have our 500,000 in ad spend, but we only had 250,000 in revenue. That's a $250,000 loss right now. Not a good start. I don't know anybody who would want to have a loss, let alone one that's several hundred thousand dollars. Right. But version B, this is where it all changes. And hopefully this will kind of put Things together in your mind. Now we have the products, the affiliates, the programs, the course, the referrals, the one time service. We have everything we need to solve problem number four. Now these people aren't going nowhere. They have places to go. They have multiple different paths to go, the unqualified folks. So let's take the same 100,000 subscribers. The same qualification rate is 1,000 qualified people. But now because we have a low ticket intro offer, that's cheaper, that's less risk, less of a commitment, we're getting 15% of these people booking a call instead of 10. Now we have 150 calls because it's lower price, because it's less risk, because it's an intro offer. We're closing 40% now instead of 25%. So we're getting more clients. There's less risk. With the one time service addition. To make it fair, I lowered it from $10,000 net lifetime margin to 7,500 because you know the one time service is cheaper. Not everybody's going to upsell that kind of stuff. Got to keep it relatively fair. Now we're getting 60 clients times $7,500, which is 450,000 instead of 250,000 before just by adding this one time service. Same 5, $5 cost per lead and 100,000 subscribers. 500k in ad spend. Now we're only losing 50,000 instead of 250,000. Still not perfect. Why would we want to lose money? But still a lot better than before, right? But that's not all. We've added the five other offers for unqualified leads as well over the course of a year. If we can just get 1% of the hundred thousand total subscribers to buy any digital product and we might have multiple for $100, that's $100,000. Very profitable revenue. If we just get 1% of people to sign up for any of our affiliate links and we could have multiple, the same person might sign up for a few and kind of skew these results favorably and we get an average of $25 per month and they churn after three months, which is all very conservative numbers in my experience. That's another 75,000. If we refer just one in every thousand subscribers away to someone you know, that's and you get a thousand dollar average referral fee, that's another hundred thousand dollars. If we sell our course or program to just 0.1% of people at a profit of $1,000, that's another hundred thousand. We could probably sell that for way more. So all of these offers will have 95% profit profit margin. And if we add them all up and multiply it by 0.95 to signify 95%, we're going to get $356,250 of extra profit. If we add the 450k from services and 356k from our other offers, that's $806,250. Same original 500k ad spend, but now we're in the profit. We made $306,250. The ads are now profitable instead of unprofitable. And this is like really what is so important. Problem number four is usually the difference between ads being profitable and not. And it rarely has anything to do with the ads themselves. If you'll remember back to when I said like, all of these problems interact with each other and you can't solve any of them fully without solving any of them. Like our exact ads and landing pages and lead magnets and emails and all that kind of stuff is the exact same. But just because these exist now and we've solved problem before, our ads go from losing 250k to making 306k, that's, you know, 556k swing just by these offers existing. And that's why it's so important. You couldn't solve problem number one without solving problem number four because the ads were unprofitable. We can't just be burning money. If not enough people are finding out about us because our ads aren't long, we're not going to be capturing enough leads. And that's problem number two. And if we don't have enough traffic, we don't have enough leads. Problem number three will exist. So we can't be solving these without problem solving problem number four. So the Thousand x leads funnel is designed to solve problem number one, problem number two, problem number three, and problem number four. But it cannot solve problem number five. And you're going to have to solve this on your own. If you have a work ethic, you can't focus for more than five minutes at a time without being on your phone. You have so many limiting beliefs, it's hard to believe that you can even exist because you just have so many excuses. If you don't plan, you can't stay organized, you can't stay consistent for more than a day or two at a time. You don't have any perseverance and you give up and you don't take accountability and responsibility for your actions. You know, there's a degree of you simply won't have what it takes to make this funnel to begin with. So I hope this video is very helpful as to how it all works. The five things that will really stop you from growing and I see you in the next one.