How To Scale Your Business

– I think before we talk
about scaling a business, the first question that any entrepreneur should ask themselves, is why do they want to scale? ‘Cause sometimes they think, “If I wanna make more
money, I need to scale,” Or may or may not be the case. ‘Cause I do know companies, they make tens of millions of dollars. A friend of mine, who has a company, that makes over $50 million a year, yet their net is less
than like 100K a year. So, bigger is not always
better, better is better. So, the point of scale, of
course, is to make more profit, but not every business is meant to scale. And it depends on the entrepreneur’s
goal, to see his goal. Sometimes, as an
entrepreneur, maybe your goal is just to have a lifestyle business. Have a laptop lifestyle. Hey you know what, I just want to make a couple hundred K a year, I wanna be able to travel, I want to be a lifestyle entrepreneur, then, don’t scale if that’s all you want, So, if it is what you want, then you need to consider, I’m scaling for what purpose? Why am I doing it? If you just do it for the sake
of, I wanna make more money, I don’t think that’s a good
enough reason to scale. If you want to scale
because, you know what, I need to have more capital so I can have better infrastructure. I can reach more people,
I could serve more people. Or, I need to scale, in order to invest in better technology. So, to turn whatever I do,
take it to the next step, I think those are all
good reasons to scale. But, just scaling for the sake of scaling, I think that’s a wrong
focus, that’s a mistake. So in order to scale, I think the first thing
they need to look for, is there needs to be
margin in order to scale. So the example I gave, if the
business is making 50 million, that’s a lot of money, and making a hundred K net, a year, so, if you double that
to 100 million, great! Now they’re making 200 K a year. That is not so good. And, in order to get to the next level, how many more employees they need to hire? Maybe, they need a new office, they need more equipment,
or whatever it is. So, the margin has to be
there in order to scale. Now, if, let’s say, you
are selling a $20 product, ’cause most businesses they only have, they’re what I call one-product pony, they’ve only got one product. Let’s say, pretend you have a product you’re selling it for $30, okay? And your cost is, let’s say, five bucks. You’re making $25 profit per unit. Well, to scale, let’s say,
pretend, an online business, or some kind of product
you sell through eCommerce, the most that you could invest
to acquire a customer is $25, because that’s your profit margin. So, if you think about
each sale that you make, you can spend no more than
$25 to acquire a customer, because $5 is your cost. Then, you could only
go to so many channels or utilize so many ways to
acquire that particular customer. Versus, on the other hand, and especially if you’ve only got one product, meaning they buy it once and they don’t have to buy again. That means you have to constantly market and get new people all the time. Now, let’s take a look
at a different scenario. Let’s say you’ve got not one product, but you’ve got a product line, or you’ve got what I call
different back end products, that you sell to the same customer. And let’s say, instead
of selling low-ticket, you’re selling high-ticket. And that’s why I like high-ticket, right? You’re selling a $2,000 product and then you sell them
another $5,000 product, and then sell them another
$10,000 product or program. So, in that case, let’s say,
on average, your annual value of a customer is, instead
of being $25 one time, but it’s $10,000. So, you have a percentage of the customers that will
buy the $2,000 program, they buy the $5,000 program,
they buy $10,000 product, hypothetically, let’s
say, that’s the case. Now, it’s a very different game. Instead of you can only spend
$25 to acquire a customer, now I can spend $500,
$1,000, $2,000, $5,000, depends on the lifetime
value of the customer. Maybe, if my lifetime value of a customer, meaning they’ll stay with me, two, three, five, six,
ten years, hypothetically, that first year, I could
spend up to, let’s say, even five, six, eight, $10,000. That gives me an edge over
someone who can only spend $25. See, when it comes to marketing, ’cause most entrepreneurs,
business owners, when it comes to marketing
they want to go on the cheap. They want it, how can I spend
the least amount of money to acquire the customer. That kind of thinking,
that kind of mentality, you will never be able to scale. In order to scale, the
question to ask is not, how can I spend the least. The question to ask, is how can I outspend everybody else? How can I outspend my competitors? If my competitors can only spend
$200 to acquire a customer, and I can spend $2,000, I could
go to so many more channels, I could do so many more things, I can test so many
different traffic sources in order to scale. That gives me way more options and that’s how we can scale fast. I can use this channel,
I can use this channel, I can use this platform, I can do offline. When my competitor can
not afford to go offline, do any kind offline marketing, I could, ’cause the lifetime value
of my customer, is high. Assuming that you’ve got your offers, you’ve got your product line and assuming, let’s say, you’re selling high-ticket. And, you’ve got your marketing down and you’ve got your traffic sources. Maybe you’re running ads on Facebook, maybe you’re running ads on Instagram, maybe you are running ad on Google. Whatever how many different ways you’re bringing in the leads, what happens is, let’s say
you’re bringing a lot of leads, you’re next bottle neck would be closers. Where do you find enough
closers to be on the phone? Because when it comes to high-ticket, anything that costs, let’s say, more than two, three, four,
five thousand dollars, it’s very difficult to sell that just on a webpage or through a video. You need someone to get
on the phone one-on-one, and close the particular prospect. In order to do that, you need people. So, where do you find those closers? So, in my case, within what
we do at our organization, is we have now probably
close to 100 closers, closing our own program and product. That’s how we are able to scale quick. Because we have the power. The people, the closers,
to be able to close people on the phone and ticket
much, much, faster, and much, much, further. And, most entrepreneurs, it’s
when they do the marketing and they’re scaling the marketing, then they’re like, oh, my God,
shit, I need some closers! And they try to bring on one person, and it doesn’t quite work. And then, try to bring another person, they’re not a salespeople,
it doesn’t quite work. They might try to run an ad,
and it doesn’t quite work. And then, they finally
find someone that works, but then, that person, you filled his or her appointment books so fast, and now, they gotta now spend other months to find another person to scale. Versus, already have
access to so many closers. So, you need closers
before you even scale, so that when you are in the position to ramp up your marketing,
you are good to go. Versus, you try to ramp up your marketing, you got to slow it down, because you don’t have enough people to handle the leads. And every single time you do that delay, that time, that’s what’s preventing you from scaling to the next level. So, let’s say, you have a
Facebook ad that’s working, that’s great. A webinar that’s working,
that’s producing leads. But, because you don’t have enough people to follow up on those leads, you have to lower the budget, or you have to pause the ad. That’s the worst, right, when you’ve got something that’s working. And then now, you gotta go find a person. It’s like you have so
many leads coming in, you can’t handle their business. So, you got to look at two
aspects, one is the lead flow, the second is your fulfillment. So in order to scale, if
the fulfillment aspect, where if you are selling something that takes a long time to make, then it’s gonna be, let’s say,
a sofa or something, right? It’s gonna be difficult to scale, because, let’s say, if it’s handmade, whatever, it’s just difficult. Versus, if you’re selling a software. Doesn’t matter if I sell one, doesn’t matter if I sell 500, doesn’t matter if I sell 50,000, I can scale just like that. Yes, I need more customer support, I need more infrastructure, correct, but the product itself,
it’s basically infinite. That aspect of fulfillment
it’s easier to scale. So if you look at it that
way, lead flow, closers, and then your fulfillment. Assuming you’ve got the
fulfillment done and that’s okay, and you can serve a lot of
people doing the same thing, then it’s just in terms of traffic source, and then in terms of closers. So, you wanna find closers
when you don’t need closers. You don’t need to find closers when you need closers like
yesterday, that’s not good. And the biggest problem is this, you are not going to find the
salespeople that you want, the traditional way,
because I’ve tried it. If you want to find salespeople, maybe you go to any of these sites, any of these, Craigslist or whatever, you’re running an ad, hey
I’m looking for salespeople. The problem is, any good salespeople that are looking for a job,
they’re not good salespeople. If they’re good salespeople, they won’t be looking for a job. ‘Cause any good salespeople, they’re already making good money and they’re making good commissions, they’re not looking for
jobs, that’s number one. Number two, if you hire a salesperson, very often, and I tried
this before myself, that I pay them some kind of a base, and then I’ll pay them some kind of bonus, they can’t close. Because any good salespeople,
is like a hunter, you eat what you kill. Yet, if you give them a base,
you give them all of that, they are not hungry. And most salespeople they want the safe. Although they’re are
supposed to be salespeople, they are supposed to be hunters, but they want the security
and they can’t close. They become a typical, like a salaried person within a company and then they are not
motivated to bring in sales. So, I believe a good closer
needs to be commission based. The more they close, the
more sales they make, the more money they make,
that’s how it should be. The sky’s the limit. They can make as much money as they want. If they are able to
sell higher price point, high-ticket, awesome. So, you’re not gonna
find those salespeople in the traditional way, you just won’t. And another thing is, if, let’s say, you do find that superstar, which has also happened to me. You do find that superstar, and that salesperson is
producing a lot of sales. That salesperson becomes your rainmaker. Let’s say your, whatever, you are doing a million a year and that salesperson brings in 400K worth of revenue for the company. Well, what happens is, the
salesperson would then, either become greedy and say I want more, or they would jump ship. And then, they would go work for someone, your competitor maybe, that would pay them a
higher commission rate, and that happens too. So, you always want to
have more than one closer, even though you might
just need one to scale. But, you kind of want to have multiple, so that if one leaves,
you’re okay, you’re fine. We have 100 closers working with us. It doesn’t really matter
if one doesn’t work, we have 99 to replace
that particular person. There are so many sales
trainers out there, and there are so many
experts teaching sales, and most of them are very, very good. I just happen to specialize
in one area of sales, Which is high-ticket
closing, high-ticket sales. If you want to learn cold calling, I’m not the guy to learn from. There are plenty of people who are better at cold calling than I do. I teach a little bit of
cold calling to my students but that’s not what I specialize in. I specialty in selling
premium products and services to players with money. So, that’s what I do. And when it comes to my methodology, so it works very well in
my area, that’s what I do. And when you find closers,
how do you know they are good? Truth is you won’t know until
you give them an opportunity. However, if you know that
they have gone through some type of training, or you can role play with them and see, hey you know what, role play with me. I have this kind of product, sell to me. Sell me my program. I wanna see how you talk to my prospect. Give them different objections and see how they handle those objections, how they ask questions. Do they sound like a typical salesperson? ‘Cause one of the things
you have to consider is it’s not just that
they’re closing sales and makings sales for
you, that’s one thing. However, another thing you
must pay very close attention, is for those sales that they don’t make. Are they pissing off the customers? Are they ruining your reputation? You don’t want your best customer, especially if they’re selling high-ticket, get off the phone with one of your closers and they feel like, “Oh my God, “I can’t believe I just talked “to this slimy salesperson. “Try to twist my arm, force
me to buy this and that.” Suddenly, now the salesperson
is ruining your reputation and relationship with your
customers without you knowing it. So, whoever the closer
that’s closing for you, you need to have that talk with them. Okay, what is your
philosophy, are you about? You know what, I want you to
get as much money as you could. Close as many people as
you could, I don’t care, that kind of “Wolf of Wall
Street” kind of angle, right? Just get the money! Or, are you the kind of CEO entrepreneur and say hey, I want you to offer my service, my solution to the customer, If only it’s a good fit. If it’s not a good fit, it’s okay. You don’t need to force them. I don’t want them to get
off the phone feeling that they need a shower. I don’t want them to get off the phone and never wanna hear from us again. Now you just, you burned
that relationship. So, what is your personal philosophy? That is very key. So, in terms of what I do when people call me the king of high-ticket sales. Not necessarily because
I’m the greatest closer that ever walk on this planet earth, no. More it’s a king without the kingdom. And what’s a kingdom without people? So I’m called the king
of high-ticket sales, not because just my skill, it’s because I have access
to high-ticket closers. More access than anyone else in the world. And more influence to high-ticket closers, than anyone else in the world. That’s what makes the kingdom that’s what makes the king. That’s the difference. If you have got a funnel, you’ve got a quality product and service, and that’s high-ticket and if
you’re looking for closers, I have access to closers. So, you can book a time
with one of my leaders who manages all my closers, to see if it’s a good fit. And, to see if I have closers that would understand your offer, maybe have a little bit of experience in terms of closing in your industry, I’m more than happy to
make that recommendation. There’s no charge,
’cause that’s how I work, that’s how my closers work. They don’t get paid
until they close a sale. So, I’m more than happy
to make that introduction. And that’s what we do because I believe when you’re
working with a client, when you’re working with a
company, a CEO, an influencer, the relationship should be, the more successful that
you are, the more successful that the closers are. That’s what I wanna do, I
wanna provide opportunities. Earning opportunities,
good potential programs for my closers to close. That’s what we do. That’s what drives me. So, if you’ve got something like that, I’m more than happy to set up the time to talk to one of my leaders and see how we can help. Another skill, you think of a triangle. You need three things, three things only. You need a scalable offer, which
is an offer you can deliver to massive amounts of people
without more infrastructure. A scalable offer, maybe it’s a software, maybe it’s a digital product. It’s something that, it doesn’t matter if you sell to one
person or 10,000 people, your work is essentially the
same, in the scalable offer. And then, you need a consistent lead flow. I don’t care how you get it, it could be through social media, it could be Facebook, Youtube, Instagram,
however you want to do it. Pay-per-click or even
infomercial, it doesn’t matter. But, consistent lead flow, and then you need closers that can close. You have those three
things, you can scale. You need all those three things, but you need to have the offer dialed in, you need to have your traffic source, your lead flow dialed in. Then, every single time
you add a new closer, it adds another 100, 200,
300, 400, thousand dollars to your revenue. You just keep adding that. And you take a lot of profit, re-invest back to that lead source, so you scale and so you get more leads. And then, you hire more
closers, you get more leads, you hire more closers. Before you know it, you’ve got a pretty decent size business.

100 thoughts on “How To Scale Your Business

  1. What was your biggest takeaway from

    my video? Comment below.

    Also, you can comment any questions

    you have for me.

    I might feature your question

    in one of my next videos.

    Don’t forget. Like. Comment. And subscribe.

  2. Dan thank you master for posting. This is school for me on the go. I have testament to your wisdom and my entire view in life has shift. Thank you and happy Thanksgiving to you and your family.

  3. What I Love Is That You Dan, Know Exactly What Your Specialty Is (High Ticket Sales). Keep Killing it!
    Whats A King Without A kingdom 👑😮💥

  4. Dan Lok thank you for inspiring me so much, not just business-wise but also intellectually as well. I have a question that you could hopefully answer though. What could I do to prepare for making a business or increase my knowledge of business while I am still in high school and only 14 years old?

  5. If you need to scale, then:
    ✔ Think big;Act bold
    ✔ Build a public profile
    ✔ Work on your business, not in it.
    ✔ Find and establish Key Relationships And Networks.
    ✔ Evaluate financing options for expansion.

  6. Happy Thanksgiving DAN thank you for all those video you up load on YouTube. You are one off A kind Mentor⛪😇💰

  7. I take from this video that currently, due to my lifestyle and type of business, it's no relevant for me to scale. I am more certain of that thanks to this video. Thank you Sifu.

  8. I recently used what you taught me about closing in a mock legislative procedure as a lobbyist and I was able to get most of the bills pass through the House of Representatives that I lobbied for. I was awarded and named as an “Outstanding Lobbyist.” (This was part of a program called Youth in Government, for anyone who is curious).

    My point is that the art of closing definitely applies to a lot of real life situations and I’m ready to take this to the next step and save up money to be part of the high ticket closer certification program so I can become a much better closer! Thank you, Dan Lok.

  9. Thanks Dan. You are the MAANNNN…. amazing. You are an inspiration of how to be self made millionaire. You inspired me in selling and I am teaching the sales principles to my students in sales. And I have created a YouTube Channel to share my knowledge with the industry people just like you are doing.
    Thanks Brother.

  10. In order to scale your business you need only three things:
    1. Scalable offer
    2. Consistent lead flow
    3. Good Closers

    The Money-Formula:
    Closers close > Revenue⬆️> Invest in getting more Leads > Hire more Closers > Revenue⬆️ …

    Thanks, Sifu! 🙇‍♂️

  11. Jeez, Dan – this video couldn't be more well timed! I'm talking with my partner/close friend, and we're discussing this whole plan of him getting leads (cause he's amazing at that) and me closing for him. Then, co-operating on the back end to fulfill, so it's money on ALL fronts!

    Seriously. It's like you're in my mind.

    See you tonight for week 3 of HTC!

    – Closer in a gown OUT!

  12. Imagine if you could sit with Dan every day like this for 30 min and just listen to him what he's saying. How your life would change?

  13. I m really learning how to think deeper and more accurately with you sifu .
    I m experiencing a lot of aha moments at this current point of my life.

  14. Thank you for this video Dan. I've been trying hard to ramp up sales this year but keep running into if I should go commission only or give a base since people come on, get discouraged from not making a sale then quit because theyre making no $. I think you finally made up my mind, I'm going to start recruiting differently, stick to commission only and see what happens. Happy Thanksgiving!

  15. I have two businesses. Got two kids and work soo hard!! I barely sleep. I wanna give them the.brightest childhood and future, something i ve never had. They are my why. My businesses work! And thanks to you I am getting better in what I do! You keep me motivated and make me smarter 👍🏽👍🏽👍🏽👍🏽 i appreciate that thank you Dan!

  16. Brilliant as usual Dan!!! Biggest takeaway: "The margin has to be there to scale". Question: I have a patented toy that I produce in China. An order came in today that has taken my factory to full capacity for the whole of 2019. My supplier won't go to other factories for help as she said they will rip my product off. I need to scale production but feel like I've hit a catch 22 ceiling.

  17. Dan, is the high ticket closing idea applicable to all business?
    A food production business, although it has a product line like you mention at 3:24 I believe it has a very low "high profit" limmit apeak of its selling abilities.
    Promotion-via-demonstration (aka, have a stand where you freely offer the product for people to taste) strategy for a product like this is difficult because the background costs gets quite high. Also my target audience are bakeries, coffee shops, and like-minded business that sell this type of food.
    I believe a high ticket clocser could not give value to me, as I don't have any high sales to go, unless I magically happen to sell many, MANY, of my units since the cost varries from €0.3 up to €4.00 per unit.
    I'm very confused. Very very confused.

  18. Biggest Take-Away = Ask yourself the question " WHY do you want to scale?" , before you even make the attempt. Brilliant! I think these days "scaling" is a cool thing to do but most entrepreneurs don't know why they scale in the first place and what it means in terms of infrastructure, responsibility etc. Great start to the content 😊👍

  19. Thank you for your great content. Sir Lok
    Can you share your knowledge about compounding and more money management tips.

  20. Hey dan, i just would like to ask how can you start up a business when the people of the country or your target marketplace has a crab mentality? Should i go out of the country because this is my comfort zone or what? Thanks idol!

  21. 0:45 Thanks again Dan!! So I don't really need to scale for the sake of leaving my freedom. I'm already a laptop lifestyle freelancer for more than 16 years. This video gave me clarity on why NOT to scale and for WHAT to scale.

  22. what I don't understand is how to combine high ticket deals with scalable products like software. Software is for free nowadays. I thought that high ticket buyers need consulting etc. that isn't really scalable (because of the required time and people)??

  23. Had a call today… "What are your Black Friday specials?"
    Me: "I don't have Black Friday specials."
    Caller: "Everybody is having Black Friday specials."
    Me; "Not true… I'm not, so not everybody is having Black Friday specials."
    Caller: "You are very expensive… and you won't give me a discount?"
    Me: "No."
    Caller: "You are losing a lot of sales!"
    Me: "Yesterday was Thursday. I had 115 sales. Today is Friday, and already I have had 122 sales. I look at profits, not sales."
    Caller: "So no discount then? You will lose me as a customer!"
    Me: "I don't need or want you as a customer. Go to my competitor and ask him for a discount. If he sells to you cheaply at a loss, then that's good news both for you and for me."

  24. High ticket works well in the States/Canada but much harder in HK unfortunately. I have 2 young kids single mum trying to start my own biz. Dan is my inspiration!

  25. Dan
    If good closers are not looking for job and we don't gets them in the traditional way (like some ads, we are looking for salespersons), how or where we can do good research to find good closers. Thanks, Hi from Panamá 🇵🇦

  26. Very good i send many emails and offers but when call the customer get close to make the sale and reach a closer cooperation 👍

  27. Brilliant stuff Dan, I can soak up this stuff like a sponge because no one is telling you this stuff, and it’s fundamental information in my mind to give you proper perspective on business.

  28. The master has spoken thanks for sharing the wisdom – I want to do it for the psychological growth.

  29. Hey Dan. This video is probably one of your best. I would recommend more of these long format videos. They are SO informative!

  30. Hi Dan I am a big fan of your work and teaching I'm from the Philippines. i really want to scale up my business how ever i only have 1 product that customers can only buy once. how can i increase sales

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