- So let's talk about,
describe something unique
that you can deliver to a
specific kind of client.
Let me give an example.
A friend of mine, his name is Norm Friend.
And Norm he owns a company
called Franchise 101.
It's very interesting, he's on TV,
he has written two best
selling books on franchises.
Now, Norm is exactly what
I just described here.
He delivers something very unique,
which is helping companies to
franchise their businesses.
And also, he only work with
a specific kind of client.
So I joked with Norm, I said, "Hey Norm",
I've known him for 10
years, I said, "Norm."
One of my mentees, Wilson, he's
now opening five locations,
want to franchise his ice cream shop,
and I referred him to Norm Friend.
I was joking with Norm, I said, "Norm,
"I actually don't know anybody else
"that I could refer Wilson to.
"It's besides you.
"Because you're the only
person that does this
"that I know of."
I said, "You know what, I don't even know
"if you do that good of a job or not!
"Maybe you do very good,
maybe you don't do so good,
"I don't really know, but
you're the only person
"that I could think of that
could provide the solution
"to this particular person that I know."
And he said, "Well, you
know, it's very true."
He said, "I am the only game in town,
"certainly I'm the only game in town."
And he's been doing it
for a number of years.
So, he gets that referral
not because he asks for it,
because he delivers something unique
and he provides a very specific solution
to a group of clients.
Does that make sense?
Yeah, not because he asked
for it, he didn't ask for it.
- [Narrator] The King
of High-Ticket Sales.
World's Highest-Paid Consultant.
Media Celebrity,
Multi-Millionaire Entrepreneur.
Acclaimed TEDx Speaker,
International Best-Selling Author.
Dan Lok.
- So let me talk about the
seven proven referral strategies
that will send your profits soaring.
How many strategies?
- [Audience] Seven.
- Seven, okay, first one.
Referral strategy number one, move them up
the loyalty ladder as quickly as possible.
You want to move them up through
the loyalty ladder as fast as possible.
Now what is the loyalty ladder?
Let me talk about this.
I was,
when I was training in
the salon/spa industry,
I teach the salon owner,
which is business owner, same,
that there's this loyalty ladder,
meaning there are five stages
when a client comes into your business.
The first lower stage, of
course, it's what we have,
it's a prospect, a what?
- [Audience] Prospect.
- Means they haven't bought from you,
but they're kind of looking, right?
I'm looking for mortgage broker.
I'm looking for a realtor.
I'm looking for a digital marketer.
I'm looking for somebody.
The prospect, they haven't
done business with you yet.
After they have done business with you,
then they become a customer.
What do they become?
- [Audience] Customer.
- Customer, then they are saying,
"Yeah, it was okay, I
think I might come back."
It's like a salon.
I go and look for a
new salon or a new spa,
I get a massage, get a
facial, it was pretty good.
It was okay, I might come back.
Ladies, how many have had that experience?
Right, you say, "Okay, I might
come back, I dunno," right?
And then after you go there a few times,
and you kind of get used to
it, then you become a client.
A what?
- [Audience] Client.
- Client.
Now it's like, "Yeah, you know what?
"I always have a good
experience coming here."
Now you become a regular, right?
In retail terms you become a
regular, customer, from client.
Then as you move up the
ladder, you become a member.
That's kind of like,
"I've been coming here
"for a long time now," alright?
"I've been coming for a long time,
"I've been here forever.
"I've been coming for a long time."
So from member and then the highest level
is not only have they been
coming here for a long time,
they say, "I love this place,
"I tell all my friends about it.
"I love this place, I tell
all my friends about it."
So let me ask you a question.
How many of you have business
that you're buying from that
you are just a customer?
Just a customer, "Yeah, it
was okay, I might come back."
How many of you have business
that maybe you've been dealing
with or you're buying from
for quite some time now, for years,
and you're like a member?
Okay, and how many of
you have done business
where you're like a raving
fan, like, "I love that place"?
You tell everybody about it, right?
So you think in terms
of this loyalty ladder.
Prospect comes in, they
do business with you,
you want to move up to this ladder.
Here's the trick.
When prospects, when your
client, buys from you,
the question is how can you move them up
as quickly as possible?
Instead of leaving it to them,
well maybe, they're a prospect, and from.
It takes them how long
to become a customer?
Very quickly, right?
One true assumption.
And then how long to become a client?
Maybe a few months, and
then maybe a few years
they may become a member, and
then they like us so much,
and finally they become raving fans.
Does that make sense?
We kind of leave it to chance.
But how can we accelerate this process?
That's the key.
And I believe you want to
be assertive and proactive
in moving first-time buyer into customer,
and to customer to
committed customer client
as quickly as possible.
And I believe the best way to have
a committed customer member
is to have them paid forward
or on some kind of auto-charge.
Especially if there's a pain of disconnect
with the auto-charge.
I will say that again.
The best way to have a
committed customer, or member,
is to have them pay forward
or prepay or on auto-charge
especially if there is pain of disconnect
with the auto-charge.
Let me give you an example.
Let me give you an example.
Let's say if I go to the
gym and I just showed up,
they have, what do they call it,
just pay my, whatever, a few bucks?
- [Audience Member] Drop in?
- Drop in right?
So if I'm drop in, I'm kind
of like, I'm basically a what?
A customer.
I might come back, I might not,
but as soon as they sit down with me
and they sell me a what?
Membership, for what?
One year, two years, and
if I pay and if I don't go,
do I still keep paying?
- [Audience Member] Yes.
- Yes, right?
By the way, I have a friend
of mine who owns a gym.
Do you know how the gym business works?
(audience member laughs)
You know how the gym business works?
- [Audience Member] Memberships?
- No, no, they, so basically
here's how it works.
So they have this location.
They basically over sold
3 to 400% of membership.
They count on at least 80%
of people don't showed up.
If everybody shows up, they're fucked.
(audience laughs)
Because you use equipment,
your maintenance, they
expect 80% of people no show.
That's how they make their money.
If everybody uses the equipment, no good.
So they oversold their membership,
but they know everybody's on auto-charge,
and if you can see memberships
sometimes they pre-pay.
Now, if you're paying, you
sign a two-year contract,
you're paying monthly, and you say,
"I don't wanna come anymore?"
There is a what?
Penalty.
Pain of disconnect.
Pain of disconnect.
And what happens is
usually before summertime,
springtime, a lot of people go to the gym.
Do you know why?
- [Audience Member] For the summer.
- Yeah, bikini, right?
You know, it's summer, before it's here,
oh my God, I need to, you
know, mm, mm, mm, right?
I gotta, I gotta do some adjustment here.
(Dan laughs)
I gotta do something about this!
And then, again, and then they know
a bunch sign up in
spring, and then summer,
a lot of people uses the equipment, right?
And then come September,
you will see it's hilarious,
you will see the curve,
you will see the curve.
It's basically like this, right?
So spring, people are thinking about it,
they're joining, peak.
Summer, a lot of people are using it.
Come September, kids go to
school, all that, they get busy.
Peuhhh!
Yeah, nobody goes.
Until next year all over
again spring comes, right?
Oh my god, I gotta lose a few
pounds, I gotta go to the gym,
let me sign up, oh I already signed up.
(audience laughs)
And now I should go, I should
use the damn thing, right?
And then again, it's the same
cycle over and over again.
So auto-charge.
So how can you turn them into a member?
How then, in other words,
in simple money terms
how can you get them giving you money,
buying from you not one
time, not occasionally,
but repeatedly, very, very quickly?
You move them up as quickly as possible.
As quickly as possible.
So let me give you an example.
If I was to, let's say,
yeah, let's say use VEG as an example.
So we have the first
time people here right?
Put up your hand if your
first time coming to VEG?
So you are a what?
- [Audience Member] Beginner.
Customer right, customer.
How many of you have been
here more than three times?
Okay, then you are a client, right?
A lot of you are members.
So as far as I'm
concerned, my DLIC members,
then they are my members, right?
And then that's why they are raving fans.
So the more people we
can move up this ladder
as quickly, now here's the key
word, as quickly as possible,
not dragging on, not
waiting them to do this,
move them up as quickly as possible.
Let me give you some examples.
So I have one of my companies,
Table Tennis Master,
anybody play ping pong in here?
Okay, I don't, but anyway.
(audience laughs)
So Table Tennis Masters,
one of my companies,
that I have, you go there and you see,
so a bunch of people they're prospects,
and I offer them free training video
to get them to opt into my list.
So your full name, your email
address, so just opt in.
So after they opt in,
what is the first thing I wanna sell them?
- [Audience Member] Membership.
- That's right.
The very first thing I sell them
is what I call Table Tennis University.
Table Tennis University, okay?
And I give them two options,
either prepay of $297,
or they can do a monthly
installment of $29.95.
So immediately, right after they opt in,
I give them some value,
immediately I wanna
move them up right here.
I don't want to offer them,
"Oh here's one training courses",
'cause could I do that?
Yeah I could easily, "Oh,
it's 50 bucks, it's 80 bucks",
whatever, I sell them
one training courses.
Eh, I could.
And then I might sell them
another training courses.
But I like recurring income.
How many like recurring income?
Yeah, I'm all about recurring income.
I want to move them up immediately.
And I, what I would do is I
would say, "Hey, you know what?
"Join."
All the email sequence you will see,
first email, give them
value, join as a member.
Give some value, join as a member.
Give some value, join as a member.
Give some value,
"Are you a idiot, how
come you haven't joined?
"Join as a member."
And then they say, "I haven't joined."
"Okay, you know what, why
don't I give you a $1 trial?
"Try your first 30 days, $1.
"See if you become a member."
Still don't buy, how about a free trial?
Free, try 30 days, see if you buy.
Everything I do drive them
towards becoming a member.
Let me give an example.
Victoria, can you show the video?
Let me show a video of the pitch from,
let me see, thank you.
One, two, three, four, five.
So let me show you the
video, the video presentation
for Table Tennis University,
so you can hear the pitch.
Pay attention to especially
the second half, okay?
The second half.
(dramatic instrumental music)
- [Video Narrator] Are you
ready to take your game
to the next level?
Becoming an elite table tennis
player doesn't come easy.
It takes hard work and the right training.
But if you're ready to do what it takes,
then you're ready for
Table Tennis University.
(dramatic instrumental music)
A revolutionary online training program
from tabletennismaster.com
that will transform you
into an elite, well respected player,
or even champion, in the
shortest time possible.
- Everyone at my club is wondering
how I got so much better,
which is really funny, but,
you know, my secret is TTU.
- I signed up, and in a few short months
I'm holding my own at rallies,
making my opponent pick
up the balls for a change.
- Some of the top dogs at my club,
are having a hard time
adjusting to my top spin.
It's pretty crazy.
- [Video Narrator] It's
called Table Tennis University
because it gives you a world
class table tennis education.
It uses a weekly curriculum
that will improve your
game one step at a time.
It's a complete online training program
which covers all aspects of the game
and allows you to learn at your own pace
from the comfort of your own home.
You'll get instant access,
which means instant improvement.
- I gained a lot from the TTU,
especially the forehand
loop and some footwork.
- TTU has greatly improved my game.
For example my serves
have become a lot better.
I'm able to control them better,
I get more spin, more speed.
- My service consistency and my accuracy
has vastly improved.
- [Video Narrator] The high
definition video training
you'll receive each week
delivers real results
and is so effective
you'll notice improvements
in your game immediately.
This is the real deal.
Table Tennis University will
give you insider secrets,
winning techniques,
and advanced strategies
that will have you playing
the best table tennis of your life.
It's like having your own personal coach
looking over your shoulder,
guiding you every step of the way.
It's the shortest path in existence
to becoming an elite player.
- The weekly lessons really help.
- My game has improved a lot.
- I really can't recommend
it highly enough.
- You really have nothing to lose.
You should check it out.
- I can't even tell you
how good I've gotten.
- [Video Narrator] If you're serious
about taking your game to the next level
then you're ready for
Table Tennis University.
Enroll today.
- Awesome, okay.
Round of applause.
(audience applause)
If you're wondering, I wrote a script.
I wrote a script, I picked
the segment I wanted edit.
Let me give you a little,
kind of, inside information.
Want to know about TTU?
What type, what kind of music did I use?
- [Audience Member] Spartan Avenue?
- Epic music.
What I notice is when I was
researching in this market,
I've been in it for eight years now,
that who my ideal clients are,
who are my target audience,
you notice the testimonials?
What I notice is most of my members,
clients, ideal clients, they're geeks.
- [Audience Member] Yes.
Star Trek type people.
So I know that so I purposely
pick a heroic music,
(audience laughs)
because it's cool.
Imagine I use some other music, right?
It's like,
it's not that cool.
Like this is like, you gotta understand,
this not like basketball,
foooo, slam dunk,
or like, skoooo, this is like.
Right?
(audience laughs)
It's not that cool!
But I want to make it cool.
(audience laughs)
So it's cool to join the club,
it's not cool if you don't join the club.
So that's one of the psychological,
psychology that I use, a
psychological trick that I use.
Now you might say, "But Dan,
that's an online business,
"that's a membership site",
or, "my business is different",
and there's all this crap,
which is a limiting belief.
A what?
- [Audience Members] Limiting belief.
- Nathan, question?
- [Nathan] Yeah, what's
the story about setting up
that Table Tennis University?
So you don't play table tennis?
- What's the story of
setting up the membership?
Yeah, 'cause I don't play.
So, a joint venture.
So simply I just have a
joint venture with the coach
who is a champion in his town, from China.
- [Nathan] How did you meet him?
- I just found him, I just go to the club.
I say, "I'm thinking of launching this
"would you like to be involved?
"And if you do involved, I'll
pay you some money upfront
"and whatever we sell,
I'll pay you a percentage.
"You could keep teaching
here at 20, 30 bucks,
"or you can build this and
you can get paid for life.
Would you like to participate?"
"Oh fucking yeah."
(audience laughs)
Right?
And it turns out to be one of
the best decisions ever made,
one of the best decisions
he's ever made, right?
So from there, then from there,
and I got the script and
everything by talking to him,
understanding the market.
Although I don't play,
doesn't matter to understand the market.
The language, forehand
loop, backhand loop,
the different language they
use, what they're looking for,
but mainly it's what they are looking for
and how can I make this cool?
'Cause what I noticed at the time
a lot of videos online are not that cool.
They're not that cool.
Now this is not about my business,
so I wanna give you more examples.
I used to have multiple
salons in Richmond,
hair salons and nail salons,
before I sold them all.
They're still there but
under different brand name.
So I used a membership model.
So from there they're
getting, 'cause most ladies,
most salons that you, where you go to,
let's say a nail salon, you are a what?
- [Audience] Customer.
- Yeah, you go here, you go there.
So immediately when someone
comes into the business,
I want to turn then into a what?
- [Audience] Member.
- Member, member, so I set exclusive club
for our loyal customers, so I give them,
what are the benefits of a membership?
Well you get points when you spend money.
So you get 100 points
when you spend 100 bucks,
200 points when you spend 200 bucks,
500 points when you
spend 500 bucks, right?
And then also when it comes to
a new nail set, nail removal is for free.
And also on your birthday you
get a free service, right?
So those three big benefits.
So everybody comes in,
immediately I turn them into a member.
Yes?
- [Audience Member] I
remember when you launched
Table Tennis Master, way, way back.
- It was like eight years ago, right?
- [Audience Member] Yeah, long time ago.
- Yeah.
- [Audience Member] And I remember
the structure was completely different,
the sale was completely different.
- Oh yeah, back then, yes.
- [Audience Member] Is it
the up-sell, down-sell,
up-sell, down-sell.
When did you get the structure
to make it suit the membership,
and then where did you get the trend,
like how'd you figure out that
it would make more money than the,
- No, because what I figure
out is, when in a business,
when we are, because we used
to sell DVDs, like DVDs,
different training program DVDs,
and we still sell those,
believe it or not,
we still sell quite a bit of DVDs.
But what's funny is, let me
see if I can go back to the,
yeah, this one.
I notice we have seasonal factor.
So in certain months,
when we're making offers,
we're selling well.
December is our best month.
People buy gifts, so
December is our best month,
but then January, it slows down.
So, I said this is not very
consistent in terms of income.
I need to add some recurring income to it.
So that's why I come up with a membership.
But the problem is at the time,
I have different programs already.
How can I make the membership?
So, "Oh, I'm learning
all these techniques,
"why would I wanna buy a membership?"
So I gotta make the
membership more thorough,
more advanced, more cool.
So now, then most of people
become members first.
What happens is, though,
this is lesson for you guys,
what happens is your best member,
they are often your best clients.
I'll say that again.
Your best member is your best client.
Because they're already giving
you money on a regular basis,
it's easier for them
to give you more money,
meaning that our best members within TTU,
they also buy everything
else that we have.
They already have this,
but oh, I'll also buy that too, right?
I'll also buy that, I'll
also buy that, right?
So, also we give them
a membership discount,
meaning that if they as a
member, you buy everything,
you get a pretty good deal.
So to them, it's a no-brainer.
Make sense?
Make sense? Okay.
So, works for retail.
And then, also came up with an idea,
which this fact can revolutionize
our retail business.
We're telling other people that, you know,
with membership that's nice,
but this is a free membership.
It's a what?
- [Audience] Free membership.
- How can we do a paid membership?
Paid membership, it's a bigger commitment.
Well, but how can we do it with nail.
Because they might come in once a month,
they might come in once
every three months.
It's very difficult to charge
our clients on monthly basis.
Can you see that?
It's kinda difficult.
It's almost impossible to sell.
But I said, "What if I
can get them to pre-pay?"
Oh, I talked to so many business owners.
It cannot be done.
No one will pre-pay.
I said, "Yeah?"
(audience laughs)
I said, "Yeah? Let's try that."
So we came up with the
idea, let's pre-pay.
If you pre-pay 500, it's, you know, 550,
you get the dollars, so they
get a little membership card
they can just use.
Almost like a Monopoly money.
Thousand bucks, they get
the savings, and then 2500.
When I launched this, all
the other salon owners
say it cannot be done,
it's never been done,
it cannot be done.
They just say it's impossible.
I said, "Okay, let's just try it."
Put that up there, we made
our first sell, $2500.
First sell.
Okay, that's pretty good.
Second, third, fifth.
Until, I think at least
30% of our clients,
30% coming on pre-pay.
And take a guess, so we have
$500 package, 1000, 2500,
which one I sell the most?
- [Audience Member] 2500.
- 2500?
(audience calling out various answers)
500?
1000.
- [Audience Member] Always in the middle.
- The middle, the one I sell the most.
And that's how I kind of came up with
the concept of three boxes,
for those of you who have been
studying with me for some
time, the three boxes,
that's how I came up with it,
but I still remember
the first sell of $2500.
It's like wow, it's crazy.
It is crazy.
Jennie, remember?
Any insight you wanna share?
Come on.
Round of applause for my wife.
(audience applauds)
She would remember better than I do.
Yeah with the package
we've made our first $2500,
that's the first sale, right 30%?
I think 30% of our package?
- Uh, yeah, probably about it.
- [Dan] Right, 30%, and then,
during that process,
like, what do you notice?
Like people who are on membership
versus just walk-in customers?
- Well, firstly, they are
definitely raving fans of us.
I think, I remember the
first client bought the 2500,
she actually flew from
Washington, no, sorry, Seattle
every time she got her nails done.
I mean, she spend, like, $500 one time.
So she was just, "Oh, 2500,
perfect, I'll just get it.
"Here's my credit card."
- [Dan] So that's a good
customer, right there.
Again, right now, here's
a takeaway for you:
there's a segment in your
marketplace right now
that would pay a premium price.
Not the $50 nail, $500 nail.
Ultra high-ticket.
This segment, maybe it's 5%,
maybe it's 2% within your marketplace,
they would buy the premium offer,
the most expensive thing you've
got, that you can think of
if you offered it.
If you offered it.
- [Jennie] And then she
tips 100 US dollars.
- 100 US dollars.
I call those affluent clients.
Affluent clients.
You might think it's a
fluke; it's not a fluke.
It's a very strategic
positioning, packaging,
everything that we do to
get those type of clients.
A typical low-end salon
just won't do that, right?
Round of applause, thank you.
(audience applauds)
So I've been talking
membership for so many years,
I've probably been preaching
membership for, I don't know,
seven, eight years now.
There's a great book you can read called
The Membership Economy.
The Membership Economy.
Finally these guys are catching up.
They wrote a fucking book on it,
when I've been talking
about it for, like, forever.
But, The Membership Economy
is a pretty good book.
If you wanna learn a little
bit more about membership
and how to structure that
within your business,
I think it's a great book.
I recommend that.
So Membership Economy.
Giving referrals deepens the
commitment of the client,
which extends the life of that client
and increases the spending
activity of that client.
Key word: deepens.
What's the word?
- [Audience] Deepens.
- The commitment of the client,
which extends the life of that client.
It increases the spending
activity of that client.
The more the client refers,
the longer she stays,
so she can refer again,
thereby stay longer so
she can refer again,
and inside the circle, the
more actively engaged she is,
so the more she spends.
Here's the thing.
Let's pretend, let's
say you like Mercedes.
How many of you like Mercedes?
Okay, let's say you like Mercedes.
And you just bought a new Mercedes.
You're so happy.
You're driving it, and this is cool,
and then after about a month into the car,
you actually don't like
it the car that much.
Like, hm, not as good as I thought.
Your friend's asking you,
"How's the new Mercedes?"
What're you gonna say?
- [Audience Member] Awesome!
- Awesome!
(audience laughs)
It's the best thing ever!
Because,
- [Audience Member] Ego.
- Ego. It deepens the commitment.
You're not gonna say, "No,
nah, I just blew 80 grand.
"It was a stupid decision."
(audience laughs)
Then you look like an idiot, you know?
That's how human being works.
So when someone refers you,
it deepens the commitment.
So a client who refer clients to you,
it makes them a better client.
You gotta think of it from that angle.
So the more they refer,
the more they are committed
in the relationship.
That's why it's worthwhile,
absolutely worth your while,
to spend some time and think
about, if they come in,
how can I move them to member, raving fans
as quickly as possible,
but also come up with various strategies
you wanna constantly implement
to get more referrals.
Because it deepens the commitment.
It deepens the commitment.
(dramatic instrumental music)
So, what have you learned from my talk?
What does it mean to you,
and how are you gonna take direct action?
Comment below, and share
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