Scale: an increase in volume.

Scale applies stress to a system, and any problem in the micro will be amplified by the exponent of the scale.

Full breakdown of any online service based business

The three systems in an online business:

Note: You can’t move on to a system unless the prior system is complete

Business is a game of inputs and outputs. You input things, and you get an output.

Knowing this we can use this law to break down every part of SMMA

Acquisition can be broken down simply….

You begin with attention which you can get from:

- Paid ads
- Outreach
-Youtube

The people who view it show some form of interest and reply to your message.

You turn that interest into an actual appointment

Process of conversions begins with the output of acquisition (Showed Appts)

The appointment shows up.

You ensure the appointment is actually has a problem you can solve and is qualified to receive your solution.

You then pitch them on the solution and the price.

Answer any questions they have related to the solution or price.

Then proceed to close the deal.

Note: The deal isn’t closed until payment is collected.

Now you have a client, but it doesn’t stop there…

The input of our value delivery system is simply the output of having a closed deal.

Process of value delivery begins with the output of conversions (closed deal)

You onboard the client.

Provide them with the information necessary that they will need to succeed.

Implement new systems for them that are better and provide more value.

Give them support while using and implementing your product/service.

Finally, obtain good/desired result using your system.

Structure.

Structure is the fourth component that needs to be increased as the size of the business grows.

To build an efficient business:

You need to find a value delivery system that works, then find an acquisition or conversion system that works along with it on a micro level.

The volume of inputs into your acquisition systems needs to be drastically increased to achieve scale.

Ex: 1 client = $10k

• 100 outreaches gets us 5 booked calls

• 5 booked calls gets us 1 client

Bottom line? 100 outreaches gets us 1 client worth $10k

Next? Let’s do 100,000 outreaches lol

However,

Certain business conditions need to be met to achieve scale:

• Results (a product that gets results)

• Appointments (that show up)

• Sales (That don’t churn quick, refund or dispute

• Healthy profit margin.

On a micro level $0k-$15k/pm… these conditions need to be met:

• refund rate of less than 2-5% (maximum 5-10%) My business has a refund rate of (0.42%)

• dispute rate of less than 1.25%, (max 2.5%)

• an average collection of at least 50% of receivable cash on payment plans (means if you’re ticket price is $5k you need an average payment plan option of $2.5k

To prove your offer, you need to book more than 150 appointments with it.

The appointment booking rate should be at least:

• 2.5% for cold systems (cold email, cold call, cold DM)

• $200 maximum for cost per booked call with paid ads.

• The show rate should be 60% minimum for optimal success

• The ales conversion rate should be 25% minimum.

• A healthy profit margin for an online business is 50%.

To find favorable business conditions, you need an offer the market wants.

Then Increase the fuel of the business (attention)

Finally, build operational infrastructure to manage the chaos that comes with scale.

To be successful, you need to focus on asymmetries in your business

Asymmetries are things in your business where the output is extremely disproportionate to the input.

a.k.a leverage

The reason many people are unsuccessful is they spend a lot of time (8 hours + per day) focusing on anti-symmetries.

Anti-symmetry is when you spend a ton of time and energy but don't actually get anywhere.

moving on…

There are four types of leverage to be incorporated (shoutout to Naval Ravikant):

To find leverage, you need to focus on asymmetries and find the thing where you can put the smallest amount of time and energy to get the biggest amount of output.

In order to get to absurd numbers like 7 figures per month, you need to have proven systems on a micro level, backed my operation infrastructure to withstand scale, then simply increase you inputs in an asymmetrical way.

My asymmetrical way is code and media.

Hope you enjoyed this one,
-Toussaint