The BIG “GURU” Myths & Blunders of the Century
Yesterday in our Clientmax private client Facebook group, we had some great questions and discussions flying around.
One of the questions reminded me, how for a very long time, “guru’s in the industry were giving terrible advice that flies in the face of solid business strategy.
1. The push away from 1:1 training “because it’s dead.”
2. Only sell monthly memberships to build reoccurring revenue.
While I understand the stimulus for some of these harmful recommendations, they ignore solid business strategy, that in many industries, people try to engineer as an advantage in their business. Yet, these “guru’s” wanted people to give up these strategic advantages simply because they didn’t know how to fix the root cause issue of their client's problems.
For example, 1:1 training is “bad because you are trading dollars for hours and isn’t scalable.” This philosophy is only the case if you don’t know how to scale a team, and your thinking is small.
Listen, one-on-one training is a massive hedge against all the fads, trends, franchises, and big brands. There will always be segments of the market who want personalized and customized. They are willing to pay a premium to get it. Just look at five different industries, and you’ll see plenty of examples.
It’s an excellent service, but this doesn’t mean you have to be the one to service it. It defeats the goal and purpose of being a Business Owner. It puts you in what we call our Level 1 EmpirePreneur, rather than, at least being at an L3 (check out Are You and EmpirePreneur? On our blog to learn more: https://www.empirepreneur.com/blog/are-you-an-empirepreneur)
Don’t get me wrong, I love Semi-Private (especially) or Large Group, but you have to realize these are different clients. Again, this is where many one-trick-pony “guru’s” don’t have the business depth of understanding.
My 1:1 client is likely someone who has the Purchase Preference of “Performance” and Gratification Mode of Interpersonal or Introvert. Where my large group client probably has a Purchase Preference of “Experiential” and Gratification Mode of Interpersonal. These are Central Psychographic Modes of your ideal client.
In other words, my 1:1 client is willing to pay for “Performance” (aka Results ) if they perceive your 1:1 is the best option to get it.
Where my large group client prefers Experiential, in other words, likes to “experiment”...try the latest and great...and new! They will prefer a mix of group class or boot camp variety, etc. It is why the large group only model is always working so hard to keep the “churn and burn” down.
The bottom line, don’t try and sell a convertible to a guy that wants a pick-up truck. Have both cars, find-out their needs, preferences, budget, goals, ability level, and put them in the right vehicle.
Lastly, why limit your revenue opportunities by selling one car in one color?
Let’s wrap with the second blunder, "only sell memberships." Listen, I get the desire to build reoccurring revenue. Part of your pricing strategy should do this, but not having a high-ticket $3000-16,000 program is a bad strategy.
Every marketing and sales mentor I've learned from always tried to engineer a “slack adjuster” offering (the slack in your sales goal) and pricing strategy to get the quickest cash return on marketing cost. This way, you could outspend your competition to acquire a client.
Additionally, you get the benefits of prepaid product or services. Most businesses die because of cash flow. Even some that technically have a profitable P&L. Many get choked by the constant collection process of trying to get paid.
So my question is: why would we give up major pricing strategy advantages because other systems are broke?
Stay tuned, in my next post, I will talk about these broken systems and additional reasons you must have a high-ticket Client Acquisition System & Pricing Strategy.
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