106: Creating Lead Machines - a podcast by Steve Larsen: Automated Downline Recruiting

I'm very excited to share with you a little bit more on how I actually get paid to find my leads.

In the past, I have taught this concept several times… But I wanna share with you some more examples.

When I was going around talking to a bunch of friends and family… And I was doing exactly what I was supposed to do… I'm not bad mouthing that, you understand?

There's nothing wrong with talking to friends and family.

Where I have the issue is before you even approach them, when you know, "Hey, they're not gonna be a great fit," but you go forward anyway.

Or you have to convince them in. Have you ever noticed that those are the people that you have to hold a cattle prod to their back to get them to do anything.

I don't want that kind of individual. I want somebody who WANTS to be in, who WANTS to be a runner, who is ready to work.

And who actually WANTS to build a real asset… And not just a little money on the side. I WANT actual runners, people who are looking to build a business.

GENERATING LEADS WITH FRONT-END PRODUCTS

Every business needs leads.

So what do you do?

That was the issue I ran into.

I remember when I finally walked through my entire list, and there were multiple times I wrote out 240 people… And I was like, "Look at all these people. Oh, my gosh. And if they got even a fifth of that... "

And you start playing the percentage game. "What island will I buy?"

I joke about that, but that was one of the things that I was like, "Holy cow."

And it was one of the things that I was super concerned about when it suddenly wasn't working 'cause I was like, "Where else do I get my leads from? I have no idea where to get my leads."

And suddenly the business was dead and I couldn't talk to anybody. This is something that, if you've not run into in the past... You're gonna run into it.

If you don't figure out a lead machine, if you don't figure out a lead system, it's going to DIE.

Every business that does not have consistent leads and cash flow dies.

Those are the two numbers you should always watch.

How many leads am I getting?

Actual leads.

Not just like, "I'm kinda interested."

Qualified leads. Track them every month.

We started doing that on a white board. When we started actually tracking the leads, for some reason without me even consciously doing more, we doubled the next month.

Then after that it was like, another 50% higher than that… Just by us tracking it.

I encourage you to start tracking the amount of leads coming in.

ACQUIRING CUSTOMERS WITH FRONT-END PRODUCTS

I wanna share with you ONE of my absolute favorite ways to not only get leads, but also get them faster while not having to pay for them. '

You need to understand a principle that all of us Internet marketers understand… Whoever can pay the most to acquire a customer wins.

You can even have a worse product, but be able to spend more to acquire customer profitably, and you will WIN against the people who have better products.

It's ONE of the major reasons why, when big MLMs say things like, "The product's so great, just go get it in front of the people and it sells itself."

That might be true to a very small percentage of people… But the reality is, if I can spend $50 to acquire a customer and you can only spend $5, I am going to dominate you, even with a worse product.

That’s why you have to think about this like, "Okay, so how do I actually make a lead machine?"

All I do is teach people how to make lead machines, and wait for them to qualify themselves and say, "You know what, I am interested, Stephen. I'm interested in whatever you're doing. Let me come over and start chatting with you."

I have some numbers here and what I don't want this to be is like, "Look at Stephen showing all the numbers of all the stuff he's making."

Could you raise your hand right now and be like, "I will not get offended".

FRONT-END PRODUCTS ARE UNAFFILIATED WITH MLM

I wanna share with you real life stats of things that I'm actually doing… This is just ONE of my products that is actually generating leads for me.

Qualifying them and teaching the ones are a good fit. I'm not saying that they're not good if they don't join my downline… Some of them already have one, which is great, they should stay in theirs.

I'm not trying to pull from other places. That's not what I'm doing here. What I'm saying is there's a group of people who are already unhappy with what they're in.

There's a certain kind of ‘moon's aligned’ individual.

Q: Is it everybody?

A: No… And it shouldn't be.

What I do is create these front-end products that are unaffiliated with my MLM.

It doesn't even say what I'm in. It's unaffiliated.

• I don't teach their stuff
• I'm not selling their products
• I don't do anything

… I have something literally in the front here.

I don't talk about it, I'm not speaking about it, I'm not saying the name of the product. I'm not even alluding.

I keep my nose so clean. I'm not saying what it is that I'm actually in… And I know it drives some of you guys crazy.

But that's the point!

I create these front-end products that attract the dream person that I would love to have inside my downline.

WHAT FRONT-END PRODUCTS DOES YOUR DREAM CUSTOMER WANT?

It's gonna be really hard to attract your dream customer or your dream downline member if you don't even know what that looks like.

Get good at defining what your dream is… And we talk a lot more about that.

If you're liking this stuff, go to secretmlmhacks.com and grab the program.

So I’ve got my dream customer… And what I'm gonna go do is figure out what this person is struggling with.

I'm gonna figure out what things they're having a hard time with.

Maybe they haven't gotten over their fear of talking to somebody.

How can I make a general product (meaning it's not MLM company specific) teaching people how to overcome their fear of speaking to people?

What I do is list a whole bunch of problems…

Problems and problems and problems and problems and problems and problems…

I go through and I look to see the ones that I could solve, like, "Oh, you know what, I actually know what it's like to be afraid of speaking to people, here's how I got over that."

What if I was to film a small little course and sell that for a little bit of money?

SELL IT… Don't give it away for free.

Now I have a product that’s NOT affiliated with my MLM.

It doesn't say the name, it doesn't say the product, no alluding… There's no cross-over. All I'm doing is I am creating actual value.

THE LARSEN DEFINITION OF ‘VALUE’

What IS value?

Value is when you solve a legitimate, expensive problem.

It has to be expensive because you need to get paid; this is capitalism.

It has to be legitimate because it can't be like, "Well, it's a serious issue."

In one of my favorite Shark Tank episodes ever, the reason why they didn't wanna take the time of day to listen to this lady is because they were like, "You didn't solve an actual issue here. You just made an interesting trinket."

Then she was like, "No, it's a real problem."

They're like, "It's not a real problem, it's like a cute thing."

You have to solve an actual issue. Value is solving a legitimate, expensive problem.

How can I cause value in whatever they're doing? I want them to have success in their thing. Then I'm gonna solve these and make my own products and sell them because it's capitalism.

Then I'm gonna make this big old list of people who are buying and not buying...

You have buyers and people who just opted in and didn't actually purchase…

Then I'm gonna keep providing value to the buyers (I'm gonna sell them the next thing), the people who just opted in (I'm gonna get them to try to buy the current thing).

What it allows me to do is spend ad money. I don't take profit from these things, that's not the point.

ADS FOR FRONT-END PRODUCTS

The point is the recoup ad cost, because if I can spend money on ads... And I got ads, ads, ads… I can talk to so many more dream people than those who are not spending ads.

Money moves faster than time.

So I'm gonna go spend money on ads… Then they're gonna come pay me money, and I'm just gonna recycle it right back into the ads.

What it's doing is spitting out a list of qualified people who have said, "I'm really actually serious about this."

The mentality of somebody who spends nothing versus $1 is so much different.

FREE versus $1 is the longest road ever.

That's why I can sell something that is super cheap. This is how I do it.

Now I got a list of people who are buyers and I'm gonna ask them to buy the next thing, the next thing, the next thing.

I'm not talking about MLM or about the products. I'm not alluding to the products, I'm not trying to be sneaky, I'm not trying to ride the line as much as I can.

The reason I'm walking through this again because we've noticed this is one of the MAJOR questions people have, and they get stressed out about it.

Just keep it simple. All I'm doing is…

1. Making a product
2. Solving a legitimate issue in the marketplace that people pay for that is completely unaffiliated with my MLM

WHAT IS A SELF-LIQUIDATING OFFER?

We call this process a self-liquidating offer. Meaning, I'm gonna make an offer but it self-liquidates. I'm not selling it to go make a bunch of money and take it, I'm only doing it so that I can spend more on ads that attracts my dream customer.

All I do is I make a cool product that only my dream customer would be interested in.

I wanna talk to ONLY those people who have had a hard time, a scary time with talking to people.

They have a hard time with opening their mouth, they don't know what to say in front of people, they clam up.

If you like this, again, go to secretmlmhacks.com and buy the program.

**This is my blatant pitch**

As we've gotten further down the show, I'm more blatantly pitching it because it's in the program! Just go to the program.

I can't give you EVERYTHING on this podcast.

When you say… What:

• Is my dream customer?
• Issues are they having?
• Are those are legitimate and valuable and expensive problems that I can actually solve?

Then I'm gonna go in and make that, and I'm gonna make it really awesome.

I'm gonna over-deliver.

I want a reputation for delivering more value than they bought…

Which is what I do, and why my offers are so huge, and why I put so much stuff in them to help you and actually accelerate the success with it.

ADDING VALUE TO YOUR FRONT-END PRODUCTS

I'm gonna pump tons and tons of stuff in there… Then they're like, "Man, this guy's really helping me."

They come and they purchase. They buy the product, and then I'll have a list of people who bought it, and those who didn't (and that's okay)... But the buyers list might buy the next thing.

All that's doing is feeding the pot of ads.

And those who opted in, maybe they just need to hear more of my stuff.

Let's send them to the podcast.

There's always people who reach out and say, "Stephen, dude, whatever you're in, I just wanna join it because I like the structure that you're giving."

And I'm like, "Cool."

Q: Did I outbound pitch?

A: No.

Q: Did I talk about my MLM in these ads?

A: Heck, no.

Q: Did I talk about my MLM in these products?

A: Absolutely not.

It's a separate island… And that's why it works so well.

MY SELF-LIQUIDATING OFFER STATS

I wanted to share with you a few numbers on this… So you can see how powerful the principle really is . It's life changing. It changes the entire MLM model (and there's nothing wrong with that).

It's multi-level marketing. That doesn't mean you can't use actual tactics that are used in other businesses.

One of the products that I sell is the Secret MLM Hacks product. I just wanna share with you some of the numbers on this… So that you can see me doing this in live action.

What I have over here is a dream customer… And I have my MLM downline.

REMEMBER: it's its own island… Not talking about it, not sharing anything about it, keeping it separate, keeping it separate.

As of right now (me recording this) the program is $997. We are increasing the price to $1,500 (if not $2,000) soon.

The ONLY reason why is because we have found that the person who is our dream customer, they're already at a certain level of success.

It's fine if you're new, and we have options for you if you can't afford that kind of thing (and that's totally fine).

The other reason is because I have a lot of people who come in now and are hoping to fulfill on it. I have to pay them too.

I'm gonna show you gross numbers. This is not the actual profit numbers.

I've been selling Secret MLM Hacks for over a year and a half now. I'll just grab the most recent year…

[Right now it's July 26th… So I grab July 26th through the beginning of July 2018. July 2018, July 2018 through 2019.]

HOW MUCH MONEY DO MY FRONT-END PRODUCTS MAKE?

I printed my stats sheet right before I got on this… We got $429,000.

The earnings per click, we're getting $54 per click (which is pretty awesome).

And the average cart value is $1,157.

… Meaning for every purchaser of Secret MLM Hacks, even though it's a $997 product, we're actually getting MORE than that.

And I wanna share with you guys WHY, and why this is such a powerful principle.

I want you to look at and be like, "How can I also?"

NOT, "I don't qualify." It's, "How can I?"

Just in the last year, we haven't spent that much on ads. I'm gonna walk through a few numbers on this.

So we have $429,000.

There's a principle here that I want you to understand…

The last few podcast episodes I've done on this show have been a lot more informational and instructional… But there's still from a 30,000 ft view… And it's just so that you understand more of what I'm doing.

A few people will be like, "You can't do that." Well, I am doing it.

And NO, I'm not the only one doing it. I didn't invent this. I observed, and I'm just doing the same, and now I'm LOUD about it.

FRONT-END PRODUCT BUYERS AND NON-BUYERS

So we have a list of people who just opted in, and then we have a list of people who are our buyers.

These are pretty good numbers. There's a metric us, in the internet marketing space, follow.

The metric is that for every person… You usually make $1 per person, per month on your list. If you're bad.

In the last year 46,000 people have seen the webinar registration page but 22,000 people actually opted in.

That's a 48% registration rate.

We have 22,000 people who opted in. Because there's always people who opt out (and that's part of the game) we have 20,000 people on that list.

About 2,000 people have opted.

I'm not the only fish in the pond, man. Go follow someone else.

Now, there's one other piece to this…

We have spent about $70,000 in ads and have $429,000 in revenue… Which is pretty awesome.

Think about this...

Q: Would you spend $70,000 to generate $400,000?

A: Absolutely.

Absolutely. Let me think about this here real quick though. Okay, so... Boom. That's in revenue.

This is an SLO.

I'm gonna go create a cool piece of value which teaches something amazing.

There's no pitch but they come and they ask to join my downline. I'm just driving ads to this. We've spent $70,000 in ads, in the last year we've generated $429,000.

I'm kinda kicking myself because I'm like, "That could be way bigger."

CHATBOT SELF-LIQUIDATING OFFER

We created a self-liquidating offer… And it's a Chatbots thing.

In the last year we've had 957 people purchase our $57 thing. That's a revenue of $54,500.

$54,000 in SLO revenue.

$70,000 - $54,000 = $16,000

$16,000 on ads to generate around $400,000 in cash.

We've had 371 purchases of Secret MLM Hacks in the last year.

We have a whole product here that is basically paying for our ads.

We're almost completely removing our ad cost by having this self-liquidating offer. It's a Chatbots thing that says, "Hey, this isn't the actual thing that you're going to, but if you wanted it's kinda cool."

957 people have paid $57. That's $54,000.

I wanna run one more number by you… This is what real marketers on the internet actually look at.

What I'm talking about right now is marketing math. Come learn how to do that, Secret MLM Hacks.

We do about $2-$3 per person per month on this list.

The whole point of the episode is for you to see some live examples.

Secret MLM Hacks is $997 right now. We're gonna increase the price.

The chatbots thing is $57... And I'll have a whole episode about that in the future.

What's interesting is, in the last quarter, it's $160,000 (in the last three months).

AVERAGE CART VALUE OF FRONT-END PRODUCTS

When somebody buys Secret MLM Hacks, how much money is actually coming through per person?

What's interesting is the average cart value is above $997.

It's actually $1,146.

What does that tell us?

For every four chatbot sales, we're getting ONE Secret MLM Hacks sale.

Isn't that crazy?

In the last week we spent two or three grand on ads, but it generated $13,000.

I'm just giving you guys some real life numbers.

Guess what? I don't know how to drive Facebook ads.

I don't need to know how to drive Facebook ads. Honestly, I don't know how to do most of the things that my business does.

To be an entrepreneur, it's not to be an expert in everything. Just go find the who that knows the how and orchestrate it.

We are actually almost completely liquidating right now.

Those numbers I showed you over the last year, they've improved since a year ago. The numbers now are waaay better than the numbers even a year ago.

For every dollar going in, we get three or four bucks out? Tell me another investment vehicle that can do that.

You know another place that can give you 400%?

I challenge you to go and get Secret MLM Hacks. Go to secretmlmhacks.com.

FIND PEOPLE TO PITCH WITH FRONT-END PRODUCTS

I know it's tough to find people to pitch after your warm market dries up, right?

That moment when you finally run out of family and friends to pitch. I don't see many up lines teaching legitimate lead strategies today.

After years of being a lead funnel builder online I got sick of the garbage strategies most MLMs have been teaching their recruits for decades.

Whether you simply want more leads to pitch or an automated MLM funnel, head over to secretmlmhacks.com and join the next FREE training.

There you're gonna learn the hidden revenue model that only the top MLMers have been using to get paid regardless if you join them.

Learn the 3-step system I use to auto recruit my downline of big producers WITHOUT friends or family even knowing that I'm in MLM.

If you want to do the same for yourself, head over to secretmlmhacks.com.

Again that’s secretmlmhacks.com.

Further episodes of Secret MLM Hacks Radio

Further podcasts by Steve Larsen: Automated Downline Recruiting

Website of Steve Larsen: Automated Downline Recruiting