Strategies from a $100M Coaching Business

In this episode, Tanner Chidester from Elite CEOs discusses his experience in building a successful business consulting company and shares insights into team structure, sales processes, and advertising strategies.

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Introduction and Background

Elite CEOs, founded by Tanner Chidester, is a business consulting company that has generated over $100 million in sales. Initially starting in the fitness industry, Tanner transitioned to helping a broader range of online businesses scale their operations. 

The company focuses on leveraging highly effective team structures, targeted advertising strategies, and a robust sales process to achieve these results.

Team Structure and Roles

Core Team Components

At Elite CEOs, the team is predominantly made up of account managers, setters, and sales reps. Each role is crucial in driving the company's success.

• Account Managers: Handle client relationships and ensure successful project delivery.
• Setters: Initiate conversations with potential clients and pre-qualify them.
• Sales Reps: Conduct sales calls and close deals.

Specialized Teams

The team structure is further divided based on different offers and avatars. This specialization allows for more effective and customized sales approaches tailored to specific client needs.

Target Audience and Avatar

Primary Avatars

Elite CEOs primarily targets two main types of clients:

• Trainers: Individuals looking to transition their fitness business into the online space.
• Business Owners: Entrepreneurs from various industries seeking to scale their online businesses.

Client Needs

These clients often lack expertise in online marketing and sales, which Elite CEOs helps to bridge through their tailored consulting services.

Advertising Channels and Strategies

Elite CEOs employs a multi-channel advertising strategy, primarily focusing on social media platforms to drive traffic and initiate conversations.

Key Channels

• Facebook Ads: Used extensively in the past but now less dominant.
• Instagram Ads: Currently the primary advertising channel due to higher lead quality.

Ad Objectives

The main goal of these ads is to start conversations in direct messaging, which are then handled by the setting team to book calls with qualified leads.

Conversion Process and Qualifiers

Elite CEOs follows a structured conversion process to ensure high-quality leads and effective sales conversions.

Initial Contact

Once a potential client engages with an ad, they are directed to a video sales letter (VSL) and a typeform application.

Qualifiers

• Desire: The client's willingness to take action.
• Financial Capability: The client's ability to afford the services.

Video Content and Call-to-Action

Video content plays a crucial role in Elite CEOs' sales funnel.

Video Sales Letters (VSL)

The VSL provides comprehensive information about the services and includes a strong call-to-action to book a call.

Call-to-Action (CTA)

The CTA directs viewers to a typeform application, where they can schedule a call if they meet the basic qualifiers.

Booking Calls and Qualification

Booking calls is a multi-step process designed to ensure that only qualified leads speak with sales reps.

Direct Messaging

Setters engage with potential clients in direct messaging, guiding them to book calls if they meet the initial qualifiers.

Typeform Application

The application helps to further filter out unqualified leads, ensuring that the sales reps' time is used efficiently.

Team Structure and Shifts

Elite CEOs employs a dynamic team structure to manage their sales and client engagement processes effectively.

Sales Team Structuring

Sales teams are divided based on different offers and avatars. This ensures specialized attention to various client needs.

Work Shifts

Setters and sales reps work in shifts to cover different time zones, ensuring round-the-clock client engagement.

Backend Metrics and Performance

Monitoring backend metrics is essential for Elite CEOs to maintain and improve their performance.

Key Metrics

• Cost of Acquisition (CAC): Ranges between $3,000 to $5,000.
• Show Rate: Approximately 72-73%.
• Application Cost: Between $250 to $300.
• Lead Cost: Varies between $10 to $60 depending on the offer.

Performance Optimization

Continuous optimization of these metrics ensures that the company remains profitable and efficient in its operations.

Team Location and Incentives

Strategically choosing team locations and offering incentives can significantly enhance performance and morale.

Location Preferences

Elite CEOs prefers hiring Canadians for certain roles. The reasons include:

• First-world capabilities
• Cost-effectiveness
• Positive work attitude

Incentives

Incentives play a crucial role in motivating the team. The company offers:

• Bonuses on closed deals
• Team-based incentives
• Performance bonuses

Compensation Structure

Implementing a well-thought-out compensation structure ensures team satisfaction and productivity.

Hourly vs. Commission

Setters are often paid hourly, especially if they are involved in messaging. This allows for a flexible and scalable team structure.

Sales Reps

• Commission-only basis
• Typically earn around 10% per sale

Costs and Talent Acquisition

Managing costs while acquiring top talent is crucial for sustaining growth.

Cost Management

The company aims to keep costs low by:

• Utilizing cost-effective team locations
• Offering competitive but reasonable salaries

Talent Acquisition

Finding the right talent involves:

• Offering attractive compensation
• Ensuring alignment with company values

Finding Optimal COOs

Choosing the right COO can make or break your business operations.

Compensation

Elite CEOs believes in offering fair compensation. Optimal COOs can often be found at:

• $30,000 to $50,000 per month
• Not necessarily $80,000 per month

Flexible Pricing and Closing Rates

Offering flexible pricing can significantly improve closing rates.

Adjustable Packages

Sales reps have the flexibility to adjust packages based on clients' financial capabilities. This flexibility leads to:

• Higher closing rates
• Increased client satisfaction

Exploring Financing Options

Financing options can help clients afford high-ticket services.

Challenges with Financing

While financing can be beneficial, it often comes with challenges such as:

• Lengthy approval processes
• Hidden issues

Payment Plans and Maximizing Revenue

Offering payment plans can help maximize revenue by making services more accessible.

Benefits

Payment plans allow clients to:

• Afford services more easily
• Spread out costs

Revenue Impact

This approach helps reinvest revenue into:

• Ad spend
• Team salaries

Using Klarna for Financing

Klarna offers a streamlined financing option that can be easily integrated.

Advantages

Using Klarna simplifies the financing process by:

• Reducing paperwork
• Offering quick approvals

Simplifying the Financing Process

Simplifying the financing process can remove barriers for clients.

Streamlined Approach

Elite CEOs aims to make financing as straightforward as possible by:

• Minimizing paperwork
• Providing clear instructions

Client Experience

This approach ensures a better client experience and higher closing rates.

Integrating Klarna into the Checkout Process

Integrating Klarna into your checkout process can streamline payment options and improve customer experience. Here's how you can do it effectively.

Easy Integration with Stripe

Klarna can be easily integrated with Stripe, making the checkout process seamless. Simply toggle Klarna on in your Stripe settings, and it will appear as a payment option during checkout.

Customizable Payment Options

You can set parameters in Stripe to show Klarna for transactions between $1,000 and $10,000. Customers can choose from multiple payment plans, including paying in installments or financing up to 36 months.

Instant Approval

When customers select Klarna, they enter their phone number and receive approval within a minute. This speeds up the purchase process and enhances customer satisfaction.

Increasing Close Rates with Financing Options

Offering financing options can significantly increase your close rates. Klarna is a game-changer in this regard.

Overcoming Financial Barriers

Many potential clients are interested in your services but can't afford to pay upfront. By offering Klarna, you can close 10-20% more deals by providing flexible payment options.

Immediate Revenue

With Klarna, you receive the full payment upfront, while Klarna handles the customer’s financing. This allows you to reinvest the revenue immediately.

Low-Ticket Products and Upsells

Low-ticket products are an excellent way to build trust and upsell clients to higher-ticket items.

Effective Price Points

Elite CEOs have found success with low-ticket products priced between $7 and $27. These products help build initial trust without significant financial risk to the client.

One-Time Offers and Bundles

To increase the average order value (AOV), offer one-time deals or bundles. For instance, a $27 product with a bump order and an upsell can significantly boost revenue.

Building Trust

Low-ticket products help in building trust, which is crucial for converting clients to high-ticket offerings. Free courses like Facebook Ads Academy are also effective for this purpose.

Closing Higher-Ticket Clients

Closing higher-ticket clients requires a strategic approach, especially in the coaching business.

Initial Sales and Upsells

Sales reps handle the initial sale, which is typically a lower-ticket item. Once the client is handed over to an account manager, the focus shifts to upselling higher-ticket services.

Relationship Building

Account managers play a crucial role in building relationships with clients. They ensure clients are satisfied and identify opportunities for upsells, significantly increasing the lifetime value (LTV) of each client.

Initiating DM Conversations

Direct messaging (DM) campaigns are a powerful way to engage potential clients and initiate sales conversations.

Starting the Conversation

When a potential client clicks on an Instagram or Facebook ad, an automated message is sent thanking them and asking about their goals. This initiates the conversation and sets the stage for further engagement.

Handling Advanced Clients

Engaging experienced business owners can be challenging. Creativity and persistence are key to getting responses from this valuable client segment.

AI Bots and the Limitations

AI bots can automate some aspects of customer interaction, but they come with limitations.

Current Capabilities

While AI bots can handle basic inquiries, they often fall short in more complex interactions. Many bots require extensive manual setup and ongoing optimization.

Challenges with AI Bots

AI bots often misfire and fail to deliver accurate responses. This can frustrate potential clients and lead to missed opportunities.

Building AI Bots for Specific Niches

To maximize the effectiveness of AI bots, consider building them for specific niches.

Niche-Specific Databases

Creating a database tailored to a specific niche, such as real estate, can significantly improve the bot's performance. This approach ensures the bot is well-equipped to handle industry-specific queries.

Manual Optimization

Manual input and optimization are crucial for building an effective AI bot. Sales experts should be involved in developing the bot's responses to ensure they align with real-world scenarios.

The Challenges of AI in Marketing

While AI offers exciting possibilities, it also presents several challenges in the marketing realm.

Complexity and Setup

Setting up AI systems requires significant time and expertise. Many businesses find the initial setup and ongoing optimization too cumbersome to be worthwhile.

Limited Scope

Most AI tools are not yet advanced enough to handle complex sales interactions. They work well for basic tasks but fall short in nuanced, high-touch scenarios.

Strategies from a $100M Coaching Business

Despite these challenges, AI can be a valuable tool when used correctly. By focusing on niche-specific applications and continuous optimization, businesses can leverage AI to enhance their marketing efforts.

We hope this episode helped you learn more about running a successful, multimillion-dollar coaching business. For more such tips, keep watching this space.