Au Unlimited Checkbook Challenge Module 03 Qa June 2021

au-unlimited-checkbook-challenge-
module-03-qa-june-2021
Sat, 6/5 3:49PM 36:39
SUMMARY KEYWORDS
people, peer groups, companies, client, business, test, partners, deal, lock, question, profit, run,
group, unmute, mortgage company, buy, trust, residual, build, vendor
SPEAKERS
Jay Abraham, Brian Oney
00:11
We are ready. I'm gonna bring on Eric here in just a second to ask a question. But do you have
any words to start us off with?
00:17
Yes. Never, never, never, ever give up. I love it. Okay, let's
00:25
bring on. Eric. He makes sure you can unmute yourself. All right. So you should be able to unmute
yourself now, Eric. Hi. Hi,
00:38
I can hear you. Great.
00:40
Hey, Jay. So I happen to have an opportunity on groups and working with executives of large
au-unlimited-checkbook-challenge-module-03-qa-june-2021
Page 1 of 17 Transcribed by https://otter.ai
enterprises. Okay. 50 million, 100 million enough tech businesses. All right, I've helped them build
them. I built my own business for 20 years, I have a partnership now with a vendor that has built
peer groups for sub $10 million. It companies or ITT tech firms. And they are trying to build their
peer groups for their largest customers who are in the 50 or $100 million range. And they don't
know how to talk to them. They don't know what their problems are, they don't know how to
relate. So they've asked me to come in and help them build their peer group program to the next
level. Okay. And so I'm happy to do that. I'd love to do that. But, and I was in the middle of doing
that for myself.
01:29
Separate What does it entail, Eric? What is what has to happen?
01:33
So somehow, we need to have like a, you know, zoom calls, with say, six to 10, executives, CEOs or
CIOs?
01:41
And so what do you what George? What What is your goal? What are you trying to create for
them?
01:46
Some kind of partnership for them and myself, that is where we run these peer groups together? I
would like to build them, help them run them.
01:55
So these are and what what is if you create these, if you create these, what is it you will end up
achieving? for that? I'm in a room with people talking?
02:07
No problem, Jay should have a group of say 10 say $50 million companies that will then hopefully
buy a lot more services from this vendor. This is like an Ingram micro. And so you
02:20
would be starting our discussion groups that would regularly meet
02:25
correct? Yep. And helping them sell to those people. There are other products that they sell as
they need to sell them their products, which is why they're doing the peer groups,
02:33
and how would you be paid? That's what I don't know. I don't know like the ask for yet. What is
your relationship right now with them? Hey, guys, I have now
02:46
they brought in a friend of mine to build their sub $10 million groups. And he has built eight in the
last year successfully added they do. friend and I were partners in a another group here in Denver,
where we would bring in 100 businesses every month in run a, a quarterly meeting,
03:03
and who was in the meeting in behalf of the same people or for different people.
03:09
Similar very similar people, the smaller ones, the sub 10 million,
03:12
and then how did they monetize?
03:15
That was just was done with that other vendor was for free. So they would hopefully buy their
software. Now, this is a new vendor, and that guy that I partnered with on the other vendor, he
wants me to come in and help him on this new vendor.
03:29
Okay, and if you do it, what will you be able to get from the bigger company? I benefit? Well, let's
say you do it together. What do you guys gonna get?
03:41
Oh, well, they should buy more from this distribution vendor. They should improve their businesses,
I should be getting a relationship with them. And what
03:51
are you getting? I don't know yet. That's what I don't know what to ask for. And so and
03:57
so. Is it Ingram? Ingram? micro? It's a junior competitor to Ingram micro, it's called Pax eight.
Okay. And if you are successful, you think you can create a bunch of new buyers for them?
04:15
I think so. And then if I'm really, maybe I could even also go to Ingram and do this at an even
bigger level.
04:20
Okay. And then when would this start? Next month, whenever we want. All right, and then what
would the frequency of doing this be? One group should meet roughly monthly, maybe quarterly,
but in what's the format? What are you going to do in each one?
04:39
It would be a probably a zoom call. And we would review each person's ideally their financials
and in depth, their marketing programs, all of their businesses, kind of like a Vistage
04:52
and then what's the outcome at the end? What are you going to help them do?
04:57
They should grow their businesses by a percentage, you know, 10 or 100% by improving
05:03
and you and your partner have the skill to do that. Yes, I have done this. What do you do when
you're not doing this?
05:13
I was running. I was the CIO, co CEO of $100 million company.
05:19
Okay, so you have you have the character, okay. So you do not know what's in it for you because
you've not locked down a deal yet. Right? Right. We haven't created it. And you don't know if
they're going to want you to do it. And you don't know if doing it, you'll be able to identify
business that will come for them. Right. Right. Okay. So it's a little speculative. A little bit. Yeah.
And if it does work, what do you expect? You think you'll get participation on going in the
business?
05:53
Yeah, there'll be participation. I'm going all those customers should stay for years in the peer
group, then they should also increase their orders with this distributor.
06:01
And then theoretically, you would before you start locked down a deal for that. I'm not What do
you mean? What's the question? Okay, well, if you're going to generate business that will sustain
Are you going to lock in before you start? participation? override profit, share revenue?
participation? I don't know how that would be nice. Okay, so you've got so all the ability you've
got now is to do it without any certainty of how it will monetize or play out. Right. Right. I have a
weird question. What's it? What's the green car in the background?
06:41
Oh, my son put up a Dodge Charger like a 67. charger? super sad. He is. No, he found it on the
internet. He loves it.
06:49
Oh, that's good. Are you a car guy can do car guy. We do a lot of RC cars together and some hot
rod stuff. Yeah. Okay, you have a car collection.
06:58
I have a huge remote control car collection and a huge remote control airplane and helicopters.
07:04
It sounds cool. But you don't have a wild collection of sports cars? No, I do not yet. That'll be your
next goal. I think that unless you get the deal locked up, it's not worth doing. Okay. I think you got
to say, okay, whatever we're going to invest six months, nine months in regular monthly
collaboration with your target audiences, we're going to add value, we're going to add value
expressly with the understanding that as we do, and as that value plays off, we expect you to
whatever the deal is, you've got with these companies to favor our sponsoring companies with
business, which will be at market and will be valuable for you. If we fail to make a difference, then
you should stop. If we don't, you should do it. If you're agreeable to do that we will invest freely
and without any other obligation as long as you are willing to monitor to apply to execute to
quantify, and when we get you profit, you reimbursed versus in these people. And then you have
to have your deal with going in? Because if you don't have all of those, it's it's an exercise in in
futility, because you have nothing locked down. Right. If they don't have the profit agreement or
right, yeah, if you can't get anyone to move on to somebody that will do it, you could probably do
it with smaller businesses that will do it.
08:35
Yeah, absolutely. What? Where should I start to figure out what to ask for? We're just in the
collaboration. So I
08:42
think you have to figure out what your collaboration with these groups is going to most notably
produce? If you're going to get more money or more savings, more cash flow, more marketing
prowess? How is that going to affect the sponsors? If it's something that lends itself to them
wanting to buy more of, or replacement from whoever they're using, then that makes sense. But if
it's just tangential tangedco, we do this, we want you to buy some of this and there's no
correlation, it makes no sense.
09:18
So if I could go back to them and say, hey, you've been doing these eight peer groups for these
sub $10 million companies, what is your sales growth, then for the last year that you've done these
eight groups? And then say, What if we could expect that for these larger companies in these
groups? And then ask for a piece of that? And you say
09:37
that they say, No, I wouldn't do it. Right? I take them to a smaller business, that would appreciate
it that has a higher probability of you hitting success where the group will I buy their products, I
mean, the models cool but the relationship may not be don't go into something on the come that
you may be able to work it out with because it just is Too speculative, lock it up. If they won't lock
it up, go some black Barbie someplace to smaller, more collaborative and desirable places that
value what you're bringing, and we'll lock it up. That's my recommendation.
10:15
Got it. Okay, so lock down the deal terms before we proceed, of course. Yep. And then also if I can
writing and I, and if I can go get specifics on what has happened for the smaller companies and
yeah, possibly make the deal around if
10:33
this works well you can do it all over the country, you can teach other people to do it for you.
Yeah, that was my next you can have operatives all over and then you can have basically get an
override from everybody.
10:45
Alright, so to get us to just get more specific on the numbers. Okay. Thank you if
10:54
you're very much. You're welcome. Right now. Yeah, I thought that was very quotable. Don't bet
the farm on a maybe locked down the deal. First,
11:03
let's bring on ish tech. Now for your stack. If you can unmute your microphone. Hi. Still, you got to
click unmute there. See the hand up? They should talk. Okay, let me let me push the button again,
see if that helps it. them? unmute. So on zoom, you're going to need to click on your microphone
at the lower hand to unmute your microphone. So that you can talk. Okay, not yet. There's There
we go. Proceed something now. Hi, Jay. This is a
11:52
Ishtiaq. How are you?
11:54
Good. And I'm from Canada, we talked a couple of times, we sell beneficial insects and mites for I
remember, greenhouse growers. So our sales model is that once we, we convince a grower to buy
our products, our technical sales people go and visit growers every week. And they assess their
pest infestation, and they see whatever they applied last week, how they are working and work,
what product would they need for the next next week. Okay, so the problem that I have is not
having enough hunters like not, not hunters in the market to hunt new businesses. So we are more
like farmers do to maintain our existing clients. So now, instead of high hiring mine hunters, I want
to involve non competing companies to land the customers in our lab and give them some, you
know, either upfront, per client, per client per acre, or ongoing. So there are two type of non
competing people or sorry, companies in the market for the same clients. One type of the
companies that also have just once a year deal, for example, greenhouse builders, they build the
greenhouse did they disappear for that client until that client is ready to build another
greenhouse? So this type of other type of companies are who serve, same like we serve, for
example, climate control companies who watch their climate on weekly basis and make some
changes if they want. So my question is, what type of companies? should I look for non competing
companies, either one time builder type of companies or ongoing support type of companies?
And what should I offer them in terms of so that they feel motivated to help us hunt clients for us?
14:08
Well, what is it client pay you and how often do they stay a client?
14:14
There, what I learned from you the lifetime value of our clients, we have big spectrum of our client
is roughly $700,000. Generally, they they stay with us more than 10 years or so approximately 10
years and lifetime value is 700,000. And let me ask
14:36
you this. What kind of profit do you make on the transaction?
14:43
So our net profit, our gross margins are in the range of around 50. So between 40 and 50, but our
net profit is 10%, roughly and in the ballpark?
14:57
Yeah, well, you could make a range with people that source noose, new prospects for you, and
you could give them 20 or 25% of the profit that you make for as long as that client that they
source keeps popping keeps profiting. And I don't know whether whether which ones to start with
test different ones, just say, look, this is an ongoing long term game, it's a residual recurring
income, the average, the average account is going to be worth $20,000, in profit a month a year,
we will give you $22,000 $2,000 a year per client, on average, for as long as the client stays, you
just have to get them started with us. And we'll teach you and we will train you and our people
will go out with you and try it.
15:55
So I was discussing the same thing with my marketing manager and what he was saying, HDR
after landing the client, these people will not have any influence on maintenance of that client
with us. So why should we give them from the residual value so
16:13
then, because that's a cheap, short sighted tactical attitude, and that kind of mind never will grow
business. You don't want to make or you don't care about time you care about results. If tomorrow
morning, I got you a client. And it took me one minute. And that client stayed with you for 20
years and made you a million dollars and I was supposed to get a quarter I would expect you to
pay me diligently not for the time Ay, ay, ay, produced, but because you did not have that client
and I got them for you, who cares. You want to be so motivated that people will do superhuman
things because they want to get a residual participation, you can be cheap and say we'll only give
it to you one time, test it, you'll get a very fraction of the effort because it's not worth that the
game isn't the same. But do whatever you want. I mean, your guy is short sighted, he's rigid, he
doesn't understand lifetime value, he doesn't understand you can just make one stipulation. As
long as the guy stays actively soliciting, and either servicing the glandt for you or bringing new
ones in, he gets the residual value. If he stops, he stops but give them a chance to make out like a
bandit forever if you get your new business you never would have.
17:39
Thank you. Bye. All right, next, let's bring on Danny. Danny, if you can unmute yourself. Hi. Hi,
Danny.
17:52
Hi, Jay. So I I've been in business for 20 years I do local SEO means only target local businesses. I
don't do national SEO. So I'm just trying to think of ways that I can implement your thing. And I
came up with partners, basically who has my money, right. So who's got my target market, so I
came up with accountants and CPAs. And also print shops, people that do printers, again, I've
been in business for 10 years Malaya marketing, you know, successful, everything is good, but I'm
looking to grow it without adding you know, the capital and all of that. Okay. Well, I
18:35
mean, you get all kinds of more partners getting media partners get get radio stations,
salespeople are people who used to work for them, get people who sell advertising, marketing,
sales training, get people who teach people any kind of online or offline marketing get get
manufacturers to support it so that you can help teach their dealers more by me goes through
everybody. Uh huh.
19:11
Okay, and another question is in regards to a mortgage company, if you had a mortgage
company, and you don't want to hire the people, because you know, that's a different animal
meaning licenses, they not everybody can just sell that. So is there a way that you can apply this
stuff to that, like, who would you get to sell that? I'm also partner in the suit
19:33
I get to sell but what is selling me? Do you mean? Anything you would go to a mortgage company
and help them get clients?
19:42
No, I'm a partner in a mortgage company and without trying to grow and get 50 sales agents
that are licensed and all this. How can I implement what you do to that? Like,
19:57
I would go to the program that we have on referral mastery. And I would master that. And I would
set up referral systems with all kinds of people who could generate referrals for your mortgage
people. Mm hmm. So go through that program. And there's two versions, there's the full blown
one that we sell. And there's a little cheap one that you can get as part of this membership. So
20:23
just referrals, you saying, yeah. But what if you wanted to add sales people without using your
own resources? Like we had that already, we already invested a couple of years ago before the
boom.
20:36
The reason that sales people don't work out is that you don't give them enough leads. And sources
if you give them leads and sources and a pitch, and an advantage. That's, that's better and a way
to give share some of the efforts ethically, and you can share revenue. With those sources. You
can build a huge network, but if you just hired salespeople, and put them on their own to do
whatever they're going to do, they're not going to win. Yeah, yeah. Yeah. Okay. Thank you so
much. You're welcome. All right. Next, let's bring on Alejandro. Hi, Andre. Oh,
21:16
should be able to unmute yourself. There you go. I D. Awesome, thank you. AJ. There's a little think
I live here in Mexico. Okay. Over there's drawer stability issue or country? I mean, even presidents
have lied. So people really don't trust in people. How could they make a successful business
person? They would like to be more trusted. I have some important business people that trusted
me. And I like a lot of opportunity. But how can I make people trust me? I mean, writing a book or
or
22:10
why don't you? I mean, we do an introduction in one of our programs for Stephen. Mr. Covey, who
is the world's authority on business trust building. But what you can do is literally, literally go buy
his book, there's two books, the speed of trust, and smart trust. They're both very inexpensive.
They tell you all the ways to make a business to business organization command far greater trust
that can produce far greater results for Groton, far greater time for far greater unit of money, I
would not do it service, go out and buy it. It's only about $20, a piece for $40 and a weekend of
reading, you'll end up becoming great, and your people will be great. So go go read that. Okay.
Thanks a lot. You're welcome. Next. Right. Next, let's bring on Howard. Howard.
23:17
How you doing? All right. Good. Okay. I'm gonna try to make it. So it's more general to everybody,
although some of this definitely applies to me as well. Okay. A question was that many businesses
are suffering greatly due to COVID. And I was wondering what approach you would take, say that
you would use to see if you already, like I see needs in the market. Personally, I'm trying to help
my local area. Okay. I'm in the Atlantic City area. So the main here is casinos. And they took a
real beating from all of what's been going on.
23:58
Right.
24:01
So what approach would you use to, to maybe when you see this need in the market, especially
after COVID, to possibly cold call of businesses? Or would you only go through people, you know,
to expediate the process? I mean, it's kind of obvious, you would want to go with somebody? No,
24:20
sorry, I would start anytime with people who already had the relationship. And then you have to
have a concept that makes intellectual sense, then you have to have a way that if it's compelling,
you can test it conservatively. And you have to have it refined enough that you know what you're
doing, and you're not just winging it, because it sounds cool. And if it's Zeno's, I would probably
start with something smaller, where you could prove out your viability because the bigger you go
to and the more complex you go to in the more regulated you go to the more difficult and if it
doesn't work, you'll never get another audience.
24:59
right because one One of the thoughts was, first of all, I have one contact. That's very strong,
because it's the place that I'd really like to help the most, because I've already done work there.
But they change management. But a year ago, it was gaming, it was a 5050 run. Like MGM.
Should I mention names are better off to skip? It doesn't matter to me. Well, it was it was originally
owned by Boyd gaming and split with him. And Boyd gaming was running it. But about a year
ago, again, it shifted all over to MGM and do COVID and all a bunch of other different things.
stuff started going sideways for them. They were the number one place when it first opened.
Okay, okay. And it stayed that way, really since 2003. But now, it turns out to be that I thought it
was the CFO, but it's actually the president of the entire MGM that is now working is like the
president over here, the one that Atlantic City, I believe I have an easy inroad to him.
26:03
And so what would you have him do though, if you got involved, what would be the activities you
would do?
26:09
Well, one of the things that was brought up to me, okay, because I'm trying to, you know,
maintain that person's privacy at the same time, because, again, I've worked for myself, these
people work over there, and one of the guys that I'm thinking of has been a long term student and
patient at the same time. So like, you know, we talked actually, when we were doing therapy, you
know, this is like, maybe a week or so ago. And he said something to me, and I just no just said to
him, I said, Don't look, I'm looking for things to try to rebuild stuff in our area. I said, your place, as
far as I'm concerned, is the most comfortable as the number one place. So I would like to help
that place first if I had the choice. And I also didn't know if it was ethical to do more than one in
the area. But what what I picked up was that they were trying to change the culture in the place
itself. And so he's a guy that actually runs all of MGM. And remember, it's an entertainment
company. It's one of the things that was brought up
27:07
negative, but just to be really on point. One thing, the one thing you would want to do with
Atlanta, with Atlanta. Oh, in the Atlantic City. Well, that's one is that? He said it's actually Borgata.
Yes.
27:25
Yeah, the company says, I hear somebody in the background. I don't know if that's for me, or for
you
27:31
say it's not me. Sorry about that. So tell me, what is it you want to accomplish Wednesday? Well,
I'd
27:38
actually like to help them, you know, like, everybody is trying to like get people to come in hard
rock over here opened up, it's right on its tail. Basically competing with them. I see he wants to
keep his placement, but also from what I was told, they want to try to take whatever system that
is, and put it throughout all their properties global.
27:57
Done still, what is it? What I'm not trying to be difficult? No, it's okay. The one thing you would be
doing for him that you can do that is compelling. And that would resonate, and he would perceive
you can do in a way that is filling a problem?
28:14
Okay, well, actually, my first thought was initially and maybe you saw an email earlier, was the
bring somebody like yourself in there, you know, what I mean, to figure out what it is that they're
trying to do. And, you know, by using lists that they have, that maybe they're under using that
28:32
was different. So here's if that's the case, then the first thing is you have to build trust. And you
have to say, I believe that in order to solve the issues you are grappling with, now, as you reopen,
you need differing advantage, you need differing strategy, I may or may not have the answer, but
I am in contact with certain people who are renowned for engineering breakthroughs and very
competitive invocare. And then you'd have to say that the the gambling market has different
regulations and constraints, but it's probably worthwhile for you to spend an hour or two with this
person, if I can persuade him to do it. He normally charges to assess, but I think I can get him to
waive that, for the challenge of seeing if he can help engineer a solution that gives you both the
advantage you want, and the whatever. And if you're open and you will put your full attention and
I will try to structure an arrangement. If he gets involved, he'll want mostly performance if he can
legally get that you may not be compatible or not. But I can promise the conversation will be
stimulating and see what happens there.
30:00
Okay, cuz the little homework that I did where I've watched some videos of the gentleman beside
it, I didn't know him for batum. But I always believe in doing some homework. So he seems like a
pretty easy kind of going guy. One of my strengths is usually being able to relate with people. And
also the person that that would be referring me to him is in a good position in the company and
help actually helped open it. Okay,
30:25
it's good. And guys, I have one, three minutes before I have to leave. Okay. Well, Jay, thank you
very much. Welcome. And everybody, I hope this has helped you see opportunities, and then we
have had Carlos, avail us, of things you can start with to help you go deeper on this and expensive
one, a very modest one. We hope that this is the beginning of the relationship with you. We have
an enormous amount of methodology and resources and expertise that has proven itself in
countless environments, in adverse periods in turnaround periods, in explosive periods. If you get
your hands around this, it could be very great. I think Brian and Scott are supporting people that
go into even the modest version of this. So hopefully, you'll explore it with them. And if it's right for
you, consider it I have only one more more question I can answer and apologies because I have
to do a an interview very shortly, and I have to prep for it. So what's the next and last one? Brian?
Let's bring on Brian. Okay, Brian. Hi, Jay,
31:42
really quick question, I'll keep it to a minute, hopefully, we're adding a new new line of business.
And we're going to be using consultants to do some testing for us, these consultants have to be,
you know, very highly educated and certified people and want to bring them in, we provide the
customers, we provide the actual tests, we provide the place that they can do the testing, and I'm
just having an I I just don't really know what the split would be, I'm kind of thinking like a 3565
split or 40 split.
32:16
You're bringing prospects in right?
32:19
Now these that we we've we have the customers, this is going to be an extension of the business
that we're in, okay, in your in What business? We do. We have a reading set literacy centers, and
we do virtual literacy, and also we
32:37
work with the kids or the or the parents privately.
32:40
Yeah, we so we do small group and private tutoring and literacy would be the privates, it would
be well, this would be an extension. So a lot of kids have have issues, maybe ADHD or dyslexia. So
we would bring in a, an educational tester to do the to do an exam or to do a diagnostic test on
these kids. Because a lot of the schools want that for their kids. And so does the pediatricians
want those kind of tests and things so they can, you know, if they can diagnose them, if they have
to medicate them or anything like that, then a lot of parents get tests for those. And those are,
you know, they're relatively expensive tests. And it's hard to get into a lot of these testing centers
to do that.
33:28
And so what's so Okay, so you get them into the center, they get the test, then what,
33:34
then we would do a, the, the actual consultant that comes in, we would give them, you know,
explain the test, is sit down with the parents and explain what they found in the in the test. And
then we have intervention programs as part of our
33:52
how much the programs cost. Excuse me, how much are those programs?
33:58
Um, it depends how many days a week they come. So we do anywhere from, if it's group, it could
be 200 200 for one time a week, or four for four days a month, up to you know, we do up to, you
know, 15 1600 if it's private, and they want to come four or five days a week.
34:16
Yeah. and say, What do you have to pay? What do these experts normally get paid per hour?
34:22
Well, they're, you know, that it's really hard. Most of them are like master degrees people or
college professors. And so they probably make, you know, anywhere from 60 to 70 bucks an hour.
I'm guessing.
34:36
You're charging how much an hour normally 200 or more?
34:39
Well, we're charging. What for our actual tutoring. We're charging about $50 an hour for group or
we charge 75 an hour for, for private.
34:51
Yeah. Well, I think if you basically gave a third of the revenue to the experts and and maybe more
when they're Doing groups that would work if you're getting basically two thirds and they're
getting a third, that would make sense when you think. Yeah, I
35:07
mean, that's, that's I kind of wanted to run it up running by somebody because it won't be a
group. See they,
35:13
it's one on one if you basically say you get two thirds, we give you a third. But you're basically
we're delivering we're, we own it, they trust us. We're setting it up. We collect the money, we
basically sign the contract, you deliver it. Exactly. We provide everything they do. Okay, all right.
Good luck. That's what I needed. Thanks. Okay, everybody, I hope these three days transformed
your thinking, I hope that you already seen that you can do a lot more with a lot less. I hope that
either the long explanation that Carlos did yesterday, or the short, more inexpensive version that
you can start with is something you'd want. We create these to help you they're not big
moneymakers for us but they're big business growth. vehicles for you. Good luck to you. I hope
you become part of the program. We do these all over. We're going to watch new ones. I'm trying
to take my body of work and distill down really great little applications that will basically
dimensionalize you and catapult you to a much higher level. Good luck. Goodbye, everybody.
Thank you

Au Unlimited Checkbook Challenge Module 03 Qa June 2021

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Au Unlimited Checkbook Challenge Module 03 Qa June 2021

Uploaded by

Copyright:

Available Formats

au-unlimited-checkbook-challenge-

Jay Abraham, Brian Oney

You might also like