The never-ending sales cycle...and the balance of goodwill vs sales/conversions | Ep 106

The Game with Alex Hormozi

Alex Hormozi

Business, Education, How To, Entrepreneurship

4.9 • 4.8K Ratings

🗓️ 19 February 2019

⏱️ 8 minutes

🔗️ Recording | iTunes | RSS

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Summary

The more offers you make, the less goodwill you have. Today, Alex (@AlexHormozi) talks about how to balance goodwill and conversion in order to maximize profit. He emphasizes the importance of building strong relationships with customers and providing value to them while cautioning against nickel-and-dime tactics that can damage the brand.

Welcome to The Game w/Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned on his path from $100M to $1B in net worth.

Timestamps:

(0:37) - Balancing goodwill and conversion points for maximum profit.

(2:29) - Building goodwill in your marketplace.

(5:30) - Maximizing profitability through goodwill.

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Transcript

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0:00.0	Hey guys, real quick. So Layland, I are definitely working on our social media presence.
0:03.0	If you guys haven't noticed and we're just breaking now into linked in.
0:06.4	All right, it's not as bad as I thought.
0:08.1	It's actually been pretty awesome so far and you guys have been really cool in there and people are sharing our stuff a lot.
0:12.2	So if we aren't connected on LinkedIn, go ahead and let's connect and let's rock and roll.
0:17.2	What's going on everyone? I'm here from downtown Austin and I want to talk to you about something
0:21.6	that has been on my mind for a little bit and today felt like the day to do it.
0:25.8	I had a little bit extra coffee today. So I'm trying to slow down my speech.
0:29.2	Otherwise, let's get right to it. So I'm pulling this never ending sales cycle and the balance of goodwill versus conversion.
0:36.2	So the first time I heard even the concept of goodwill was from a marketing frank heard, he's still markets now.
0:41.9	And he talked about how the amount of money that you make is directly proportional to the amount of goodwill you have in the marketplace
0:47.9	multiplied by the amount of conversion points you have, the amount of times you ask for money.
0:52.8	So the amount of offers you make. What's interesting about that though is that the more offers you make,
0:57.9	the less goodwill you have. And so it's the push and pull balance between how much goodwill you have in the marketplace
1:02.9	and how many offers you have every time you make an offer your goodwill goes down. But the more goodwill you have,
1:06.8	times the amount of offers the more money you make. And so what does that actually mean?
1:10.6	And so the way that we've I think that we've done a really good job of having goodwill in our audience and our customer base
1:18.7	by balancing this fairly well and putting a lot of attention to it. And so I think it's kind of goes in contrast to the
1:26.5	to the concept of like, nickel and diamond people. So there's a lot of businesses that are out there that love the
1:33.2	to upsell like, well, you know, like, let me let me give you an agency example. Right. So if there was a company that was an agency
1:39.7	and they were like, well, we have this is our base level. And then for an extra 10% we'll do your creative and an extra 10% on top of that.
1:46.6	We'll do your copy and it's our true 10% we'll top that, blah blah blah blah, right.
	...

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