Hey, it’s Connor Marriott here, and welcome to module five of Genesis. In this module, we’re going to be talking about client acquisition. So, how to actually go out, start generating leads, start booking calls and making sales.
In the previous module, we spoke about the two core areas of a business. We’ve got your acquisition and we’ve got delivery. We covered delivery specifically, talking about your message, your offer, and your fulfillment, which are essentially the base of the business. Once you’ve got those things, you can then use them to build out your acquisition and start generating clients. So, within client acquisition, we have lead generation, lead nurture, and sales.
If we were to look at the customer journey of taking a stranger and turning them into a paying client, there’s a few steps that that stranger needs to go through before they’re going to be ready to spend money and work with you. We can use lead generation to generate awareness, and ultimately generate a lead. A lead is someone who’s responded to you and said, “I want to learn more.”
We can then use lead nurture to warm up that lead to the point that they’re ready to book a call. Then, we can use sales to convert that call into a sale or a paying client. Lead generation is a process of taking strangers and turning them into a lead. Lead nurture is the process of warming up that lead to booking the call, and sales is the process of converting that call into a client.
We’re going to start off talking about lead generation, which is the first step. By this point, you should have your message. Now, you want to put that message in front of your market. How do we do that? Well, we use a lead-generation method or strategy. Some examples of this could be, running an ad. It could be posting content. It could be posting some videos or writing some articles. This method is what we use to essentially bridge the gap between your message and your market.
But when it comes to lead generation, most people get far too caught up on the method. They think, “I need this method or that method, or this strategy or that strategy,” but understand, all the method is, is a process of putting your message in front of a market. What you pay for when you are using any lead generation strategy is the method.
If you’re running ads, you’re paying for your message to be seen in the app. If you are posting content, you’re spending time, so you’re paying time to get a message in front of people. But what gets the result is going to be the message. That’s why we started there. We didn’t start with this, because if you don’t have the right messaging, then the method will never work.
To break this down and show you what I mean, if we look at one of these methods, such as ads, so if you run an ad, you would basically write an ad and set up on a social media platform, such as Facebook ads, or Google ads, or YouTube ads, or TikTok ads. Then, that would be seen by your market.
The way ads typically work is, you pay per impression, which means a view, essentially. Typically, you’ll pay per 1,000 views. So, if you ever see the word ‘CPM’, it means essentially paying for 1,000 views, the cost for that. On average, depending on the platform, you might be paying $30 for 1,000 impressions. So, every time you pay $30, your ad or your message gets seen by 1,000 people.
Now, whether or not that ad is effective, whether or not it works, is not based on the impressions. It’s based on what people do after they see it. If you had bad messaging… for example, you had a very bad ad… then you might pay $30, it gets seen by 1,000 people, but let’s say only one person clicks. In that situation, your cost per click or your CPC is going to be $30, because you paid $1,000… sorry, you paid $30 to get in front of 1,000 people, and one clicked.
So, that one click cost you $30. It’s not that you necessarily paid for the click. This is where people get confused. They think, “Oh my cost per click’s high, how do I lower my cost per click?” It’s not the cost per click you want to lower, necessarily. You pay for the impressions, and then based on the message, it’s going to determine how many people click.
So, if you had an average message, so better than bad, you still pay $30 for 1,000 impressions. Now, let’s say five people click. Now, your cost per click has gone to $6 instead of 30. Then, if you had a good message, maybe you get 30 clicks. So now, your cost per click is $1 instead of 30.
So, what you’re actually paying for, the impressions, stays the same, more or less, but the effectiveness of the ad is determined by the message and the number of people from the market that respond to the message.
To choose another example. If you were to post content, which is a alternative lead-generation strategy, you might do five posts, and the aggregate number of people that have seen that post or the total posts might be 1,000 people. So, maybe you do five posts, on average each post gets seen by 200 people. So, for every five you do, you get 1,000 views. Obviously, that’s going to depend on a few factors, such as your followers and the platform, but for this example, let’s run with this.
Again, the same rules apply. If you have a bad message, maybe one person responds from those five posts. If you have an average message, maybe five people respond from those five posts. If you have a good message, maybe 30 people respond. Often, people get caught up on the method and they think, “This method isn’t working, I need to try ads” or “Ads don’t work for me. I only need to do organic.” The method isn’t what determines, really, anything.
The method’s simply a way to get the message in front of the market. No matter what method you use, it’s the message and the market that determine the results. So, different platforms, different strategies may have different costs in how much it costs you to get your message seen. They may be able to show that message to different segments of the market, maybe they’re more qualified or less qualified. But ultimately, if people don’t respond, it’s not because of the method.
It’s always because of the message. That’s why that is the most important thing when it comes to generating leads, because without a good message, no method is going to work. So, the only way to generate leads is by having messaging that people actually want to respond to. There’s no way around this.
When you’re starting out, to test and iterate your message, there’s two main methods that you could choose to use. You could use paid advertising where you’re spending money, or you could use organic marketing where you are spending time. Paid would be running ads. Organic would be posting content or messaging people.
The benefits of organic is that you have total control over how much you do. For example, you could decide to send 20 people this message, 20 people that message, and so on. So, you can really test it well.
You also get feedback right away, because you might send a message to someone and they might reply and say, “I’m not interested because of this reason,” Or that reason. So, you’re collecting data, and it allows you to learn quite fast. Obviously, the drawback to that is it costs time, because you need to manually post or send these messages.
On the other hand, you’ve got paid advertising, which has some benefits. You can reach more people, obviously. You can test more things at once. For example, you could set up 50 different ads with 50 different messages at the same time, and run them, send them off. The drawback to that, obviously, is cost. You need to pay for it.
The other negative… or there’s two other negatives with paid advertising versus organic, when you’re testing. The first is that you need a much larger sample size to actually know if something’s working. With organic, you might send a message to 20 people and see if they respond. If an ad is seen by 20 people, it’s not enough data to actually know if it’s working. We need 1,000, 5,000, 10,000 impressions before we really know what’s going on. Obviously, that comes at a high cost.
The other drawback is that the feedback you receive is only binary. It’s only, it worked or it didn’t. It’s not why it worked or why it didn’t. You might run an ad and it doesn’t work, you don’t know necessarily why it didn’t work. Or you might run an ad that did work, you don’t know why it worked. Because people don’t comment and say, “I’m clicking on this ad because of this reason.”
Whereas with organic, you do get that direct feedback. So, when you’re testing, when you’re starting out, I suggest starting with organic, because it will allow you to get that feedback and learn much faster. Of course, you can do paid if you have the budget. But ultimately, what we’re doing is the same. We’re testing to see if our message is interesting enough for our market to want to respond. Doesn’t really matter what strategy or method you use to do that, because all that matters is the message and the market. That is lead generation.
Now, let’s look at the next step, which is lead nurture. Once we have a lead, now, how do we warm them up so that they’re ready to book a call? That’s what lead nurture is used for. This is basically the process of taking a lead who’s aware of you, and warming them up so that they are ready to book a call.
The goal of lead nurture is to warm up leads so they can book a call. I said that several times. This can be done across a number of different steps, or a number of different strategies. Just like when it comes to lead generation, a lot of people tell you, “You need to be running ads on this”, or “You need to be doing organic on this”, or “This is better than that”.
With lead nurture, it’s the same kind of thing. People tell you, “Oh, you need a webinar,” or you need a funnel, or you need a Facebook group, or whatever it is, you need 20 emails. It’s all the same thing. It’s a process of warming a lead up enough so that they’re able to book a call. Again, the method doesn’t really matter. We just want to look at, how warm do we need someone to get before they are ready to book a call?
That might take one step, it might take five steps, it might take twenty steps. These things do change. Again, the biggest variables on those things are going to be your messaging in your offer. But, we basically want to see how many steps are required to get someone to book in for a call.
Let’s say it took two steps. Well, then having a five-step process where you have a multiple-step funnel, or a Facebook group and an email sequence, and all these different things, may not be necessary. Although, there is sometimes still a benefit to that.
If we look at this customer journey of taking a stranger and turning them into a client, ultimately what we need to do is warm them up enough so that they’re ready to buy. That is done through both marketing and sales, marketing being lead generation and lead nurture, and sales being the sales process.
We can focus more or less on one or the other. So, you could be focused more on marketing and lead nurture, where your marketing, your funnel, your nurture processes are doing most of the heavy lifting. Or, you could focus more on sales, where your marketing and lead nurture are basically warming someone up just enough to book a call, and then you’re relying more on the sales process.
If you’re focused more on marketing, then your nurture process will have more steps. It could be a longer funnel. It could be a longer warmup email sequence. The benefit of that is that when you do speak to that person, they are going to be warmer, meaning they’re more likely to buy. But, with every additional step you add, you’re going to have less people that actually see it through. Therefore, the cost is going to be higher.
On the other hand, if you had a smaller lead-nurture process, then you’re going to rely more on the sales process. With that, you will have higher volume, lower costs, but your sales conversion maybe be lower if you’re not, or if you’re just starting up with sales.
There’s no right or wrong here, it’s basically this process, and it’s a juggling act or a balancing act of what it is you want to focus on. Do you want to focus more on marketing, and let the marketing do most of the heavy lifting? Or, do you want to focus more on sales, and let the sales do most of the heavy lifting?
To give you an example of what this would look like, a smaller nurture process, which would result in a cooler lead, but higher volume, lower costs, maybe you send someone a message, you have a conversation, and you book them in for a call, right? Not many steps.
On the other hand, a warmer lead, maybe you run an ad. That goes to a landing page. From there, they watch a video. Then they go to a sales page. Then they fill out an application. Then, they book a call. That lead is going to be warmer, but there’s more steps, so less people are going to see it through. So, the cost will be higher. Again, there is no right or wrong here. It basically just depends on, what do you want to focus on?
Do you want to focus on marketing, or do you want to focus on sales? You still need both, but one is going to have the preference. Adding additional steps to your lead nurture process may result in warmer leads. However, it’s not always necessary. If anyone tells you you need a 20-step funnel, it’s not necessary. It’s not true. It’s not the case. They just probably aren’t very good at sales.
Adding additional steps. As you start to do more calls, you may decide you need more steps, because the people you’re speaking to are not warm enough. In that situation, that would make sense. But when you’re starting out, I suggest starting with fewer steps, because you don’t know how many steps are required until you actually start speaking to people.
So, start talking to people as quickly as possible, start booking calls as quickly as possible. Then from there, you can then decide, “Do I need to warm them up more?” So, when you’re starting out, my suggestion in terms of the tactic would be, using organic. Then, when people respond to you, start the conversation, and then start asking them some questions, and then see, at what point are they going to be ready to book in a call?
To give you an example of what a conversation might look like, what we have found to be most effective when having a conversation with a prospect is, step one, starting off with an either/or question. Basically, an example of that would be like, “Hey, name, I see you’re this type of market. Are you currently doing one thing or something else?” Either/or.
To actually give you a real example, “Hey, John, I see you’re a business owner. Are you currently running ads or just using organic methods for now?” Starting off with an either/or question is a good way to start, because it doesn’t require much thought for the prospect. If you start off asking someone, “Hey, what’s your top 20 goals,” they’re not going to put in the effort to even bother responding. By giving an either/or, they just need to pick this or that, it’s very simple.
From there, you can ask their goal. So, you might ask, “Cool, what goals are you working on at the moment?” An example would be, “Nice, any exciting goals you’re working on in your business at the moment?” Then from there, you can ask about the challenges they’re facing. So, “That’s a cool goal, any challenges you’re facing in regards to that goal?”
Now we know what they’re doing, we know their goal, we know their challenges. Then finally, we can ask if they want help. You can ask something like, “Are you open to getting some help with that, or are you happy just doing things on your own for now?” If at that point they say, “Yes, I’m open to getting some help,” you can book them in for a call.
If you are testing this and you notice that they’re like, “Oh, no, I’m all right,” then you might want to add in a few more questions, because they’re not quite warm enough to book a call yet. That’s basically this process. You can use this framework to see how many questions you need, and you might want to add some more if they’re not warm enough to book the call. But ultimately, this is a very simple way to start testing your messaging and your lead-nurture process to get someone to book in for a call.
Finally, let’s look at the last step here, which is going to be the sales process, now that you’ve got a call. This is how we convert those calls into clients or sales. On a sales call, there are three things you want to achieve. Number one, value; number two, change; and number three, decision. You’re going to work through all three. This is ultimately what you want to do on a sales call, when you’re talking to a prospect.
Number one, value. At its core, a sale is an exchange of value. If a prospect believes the value of what they’re going to receive will outweigh the cost, they will buy. However, the thing about value is, it’s subjective. There is no absolute value. It’s only the value that the prospect perceives to be the value.
The subjective value of your offer is made up of two things. Number one is clarity of the outcome, and number two is confidence in the outcome. Clarity is getting the prospect to understand where they are, the problems, their goals, and how you’re going to get them there. Then, confidence is explaining how it’s going to work for them specifically.
Clarity is understanding where they are, where they want to go. Confidence is making sure that this thing that you’re selling is going to work for me. An example of this would be, if I tell you I’m going to help you achieve something worth $10,000, but you only believe there’s a 50% chance of achieving it. So, you don’t really have high confidence.
Then, the subjective value is not $10,000. It’s $5,000, which is 50% of $10,000. Because there’s only a 50% chance in your mind of actually achieving that $10,000 thing. So, it’s not worth $10,000, it’s worth $5,000. This is basically how sales work. You might think that your offer is worth $10,000 or $5,000. But, if the prospect only believes there’s a 10% chance of achieving that outcome, then in their minds, it’s only worth $500 if it’s 5,000.
Understanding that is quite important, because if you can increase their confidence and clarity, they’ll actually start seeing what you have to offer for what it’s actually worth. In order to increase the subjective value of your offer, you must create clarity of the outcome, and increase the prospect’s confidence in your ability to help them achieve it.
To increase clarity, we want to focus on the real problem, not the surface-level problem. I’ll show you what I mean in a second. But if you can get the prospect to properly understand the problem and the outcome, then they have clarity. They know, “I’m here. I’m going to get here.”
For confidence, that comes from explaining how you’re going to help them specifically. To give you an example, if your problem was, you are struggling with energy and your goal is to lose some weight, to increase your energy, if I just say, “Yeah, that’s what’s going to happen,” there’s not a lot of confidence there.
But if I say, “The first step, what we’re going to do is, you mentioned that you struggle with sleep. So, that’s what we’re going to do. We’re going to set up a sleep routine so you can get better sleep. Then you’re going to have more energy. Then, the second thing you said is, you struggle to follow a routine. So, what we’re going to do is create a routine that’s flexible, so that you can stick with it.
“Then the third thing you said was that you don’t like diets. So, what we’re going to do is we’re going to create a diet, but it won’t feel like a diet because we’re going to customize it in a way that has enough variation so that it’s not a strict, rigid diet to follow.”
By doing like what I just did then, I explained it based on the hypothetical problems that you didn’t say, but I customize it through those problems. That’s how you get confidence, because I’m not just saying, “We’re going to improve your sleep, and your diet, and your exercise,” I’m saying, “Your problem is this. So, what I’m going to do is fix that by doing this.” So, the prospect’s like, “Oh yeah, that’s exactly my problem, and I can understand how that’s going to help me.”
That is value. The next step is making sure the prospect is actually ready to change. Often, people will want a goal or an outcome, but they’re not ready or willing to change in order to actually achieve the outcome. So, hypothetically, let’s say someone wants to lose 20 kilos. Look, they might want that goal, but are they willing to change their diet, and their habits, and their routines, and their lifestyle?
Maybe not, so we need to make sure that, first of all, the prospect sees the value in the outcome but also, number two, they’re ready to change to achieve it. A prospect may see the value in what you do, but if they’re not ready to change or if they don’t believe they can change, then they won’t move forward. Different people have different levels of problems, and therefore there’s different levels of change that’s required.
A good way to think about this would be renovating a home. If you had a home that was in pretty good condition and it just needed a few minor changes, then it makes sense to focus on the small details. Like, maybe we get it a new paint job, maybe we clean the carpets a bit. But, if that home is so old that it needs to be demolished, then the details no longer matter, right? We won’t care about the paint yet, because we’re going to tear the whole thing down and rebuild it.
This is how you can think about sales. Obviously, people aren’t homes, but it’s the same kind of process. If someone has a few small problems, so let’s say they’re overweight, but it’s just their diet. They know it’s just their diet… and everything else, like they’re working out, everything’s perfect… then it’s just a small problem, it’s just their diet. In that situation, it would make sense to focus on the diet.
But if someone’s in that same situation, but their habits are wrong, their routines are wrong, their lifestyle’s wrong, and it’s been that way for 20 years, then the smaller details no longer matter because everything needs to change.
So, when you are doing the sales process, you want to gauge where that prospect is, and understand how much change is going to be required, and then make sure they’re ready for it. Because if someone, again, just needs to change in their diet, there’s not going to be a lot of change. It’s going to be like, “Okay, we’re going to change your diet. Are you ready for that?” “Yes.”
But if someone’s entire life needs to change, then we need to make sure they’re prepared for that. If they’re not prepared for that, you shouldn’t sell them. So, this change part is making sure that they’re ready for change, but the level of change required is going to depend on where that person is specifically.
Finally, the last step is, now, helping the prospect make a decision. We’ve increased the perceived value in what you do. We know, and the prospect knows, they’re ready to change. Now, it’s time to decide, are we going to do it? The important thing here to understand is that someone is only going to make a decision if they have a small selection of things to choose between.
There’s this law called Hick’s Law. It’s not a real law, it’s a psychology law. Basically, what it means is, the more choice that someone has, the less likely they are to make a decision. So, if someone’s trying to decide between this and that, and 50 other things, it’s very unlikely they’re going to make a decision. So, what we need to do is remove the other decisions, and make it a clear choice between one of two things.
If we imagine you are on the right and the prospect is on the left, there’s these different paths or doors that the prospect could walk through. One might be, doing nothing at all. The door you want the prospect to move through is, working with you. But if these other doors are open, that’s where the prospect’s going to go.
One of these doors might be giving up on the goal altogether. If that’s something that the prospect is considering, we don’t just want to ignore that. We want to explore it and ask them, “Why is this goal important? Why not give up on it? Like why do you want to do this at all?”
By exploring it, we can close that door so that it’s no longer an option. The next door might be, “Maybe I’ll wait. Maybe now’s not the right time.” Again, we can explore that and be like, “Well, why is now not the right time. Is now the right time? When is the right time?” By doing that, we can close the door.
They may be choosing between another service provider. Again, don’t just ignore it, ask them, “What are you looking for, specifically? What does the other service provider provide that I don’t, and is that what you want? Would you prefer this?” And you can close this door.
Then finally, they might decide, “I just want to do it on my own.” Then again, you could explore that. You could say, “Well, it sounds like that’s what you’ve been doing for the past couple of years and it hasn’t worked. So, would it be fair to say it’s time to get some help?” And you can close that door.
Now, by doing this, there’s only two doors left. No change, or working with you. Now, the prospect can make a decision as to which path they want to do. The key here is never forcing them to work with you. It’s painting these two paths, A or B, and then getting them to make a decision either way.
Doesn’t matter what decision, but we want them to make a decision. We basically have these two paths, A or B, and then we can ask the prospect to decide. This is how we can get a prospect to finally make a decision, and hopefully move forward to work with you.
If you are not sure where you should be focused on in these three steps, ideally we want to hit all of them, but we can look at the types of objections we get, to reveal what area is lacking. If you’re getting money-based objections, so people saying things like, “It’s too much money, can’t afford it,” then that’s coming from a lack of perceived value. So, it would be step one you want to work on.
If it’s a time-based objection, meaning, “Oh, I’ll do it later. You know, now’s not the right time, maybe in six months,” then it’s a lack of urgency in regards to change. That was step two. If it’s a delay-based objection, which would be, “Let me think about it, I’ll get back to you. Can you send some information,” then there’s lack of clarity around the two decisions.
Depending on what sort of objections you’re getting on the call, will help you identify what area, which of these three steps you need to work on more. They are the three steps of client acquisition. Lead generation to generate leads, lead nurture to warm up leads, to get them to book into a call, and then finally, sales to convert that call into a paying client.
Just to recap, lead generation, the number one factor that determines success of lead generation is the messaging, not the strategy. There is no ad-funnel, strategy, or platform that will compensate for poor messaging. Every strategy can work, if you have great messaging.
For lead nurture, the number of steps you use will determine how warm the prospect is when you actually speak to them, and more steps will make the prospect warmer, but the number of people you end up speaking to will be lower and the cost will be higher.
Finally, sales. For prospect to buy, they must see the value in solving the problem. They must be ready and willing to change in proportion to the problem. They must have two clear options to decide between. That’s it for client acquisition. Hopefully this has been useful, and I’ll see you in the next one.