Transitioning to the New Model

What is going on? This is Matt and in this module, we're going to break down your transition and transformation using the new model, all right? So let's dive into it. So here's what we're going to cover in this training today as well as in the rest of the weeks materials that you're going to be implementing and executing to transition to the new model. So first, we're going

to break down every piece that's involved in this transformation. We're going to share how you can escape the services trap in the broken agency model by designing your new model offer. We're going to break down what flawless execution looks like using the new model machine. And lastly, we're going to show you how to assemble your army and how you can start building your team and building out

your technology to support this new model and this new machine. All right, so let's dive in. So at a high level, this is the transformation that we're taking you through through this accelerator program. So you're starting off here, and done for you. You're probably selling custom services, custom projects, maybe it's one-on-one services. And what we're helping you do with the lifestyle agency accelerator program is transition to

the new model, which is automating delivery, okay? So that is the transformation. And you know, you probably already understand this, but I want to recap because it ties into this week's lesson, okay? So what we're doing is we're escaping the services trap with your new model offer. So specifically, what we mean and the reason for this transformation from forgetting away from this done for you custom services

and projects world is because this is the old model and this is the trap that leaves a lot of people trapped inside their business. So for marketing, they're relying on hustle and networking and referrals. For sales, they're relying on custom proposals and services and projects and you know, every sales process is different. Every time you get a new client, you have to go through a new process

and it just creates a lot of inefficiency in the business. And then for operations, you're dealing with inconsistent delivery and poor profitability because again, you're constantly changing the sales process. So that means that the delivery process is not optimized. It's not efficient. And then lastly, you are clients. They're not sticking around, you know, poor client retention and not getting client results means that you know, you're not

going to have clients for more than a few months or after that contract ends. And so the reason that this agency model leaves business owners trapped is because this old model relies on manual labor instead of relying on repeatable systems and automation. And so again, this leaves many trapped inside their business because they're unable to grow without sacrificing their time and money because again, this is all

being operated through manual labor. So in order to grow, that means you need to spend more time and you need to spend more money. And at a certain point, usually it's five or 10 or 15 or 20 or even sometimes 30 clients, you're going to max out and you're going to burn out and you're not going to be able to escape. So that is the reason that,

you know, when you're investing your time and money, that's what you're getting out. You're overwhelmed, you're stressed out, you're unhappy. And that's what we want to break with this program and with this system. Okay. So specifically in this module, what we're going to do is we're going to help you craft your new model offer, your NMO, to transition away from that done for you services trap. Okay.

So that is the objective with this training. So this is what we want your business to look like. And this is the transformation that you're undergoing in this program. So first, instead of manual hustle and networking and referrals, we're relying on automation and really having a machine to fuel your lead generation and sales. Okay. And then we're going to help you craft your new model offer. Okay.

So this is going to be a highly leveraged, highly scalable model and offer that allows you to take on hundreds of clients, not max out at 10 or 20 clients. Max is replacing yourself and really stepping away from the business and setting up full automation so that you have the right people in the right places, you have the right systems, you have the right tech and everything

is supporting your ability to grow and truly unlock your genius and your potential as a human, as a business owner and really live a life without limits. Okay. So the reason that this new agency model is successful and a much better option is because it relies on leverage delivery systems and automation. And this allows business owners to achieve true freedom inside their business by scaling and acquiring

more clients and, you know, adding more people into this machine without sacrificing quality of work or life. Because again, instead of relying on manual labor, we're relying on systems and automation. Okay. So the reason that this is important is again, you know, Tim Ferris, the guy that many of us kind of got started with on this crazy journey is the goal of investing is simple. It's to

improve quality of life. If your business is not serving you, it's a broken model, right? So when you're investing time and money into your business, it must be generating these positive outcomes for you and must result in a better quality of life. It must result in, you know, your ability to live the life that you want. And that is the reason that you're in this program. And

that is the reason, you know, for this transition to the new model. Okay. Your first action item for this week's module is to define and design your new model offer. So we take you through a worksheet and ask you a bunch of very specific targeted questions that by the end of answering each question and getting clear on all of these different pieces of your new model offer,

you're going to have a very scalable, very targeted offer for your market that is based on their current situation, that is based on their desired outcome, and that is based on value that you provide as a business owner. And you know, what we're looking at here is typically a two to six month implementation time at a price point of anywhere from two to six K plus either

as a one time or monthly investment. So go ahead, dive into this worksheet, answer every single question, and then go ahead and share that with your mentors to get feedback so that we can move on and really help you implement this new model offer. So that's the first action item of this week for you. So what does flawless execution using the new model and really using a

machine to support your business growth and support your vision and support your achievement of your goals? What does that look like? So this is what flawless execution looks like. There's three parts that you need to understand and really focus on nothing but these three things. First of all, is delivery, okay? So making sure that your delivery is efficient, it's effective, and most importantly that it's generating client

results and client success, okay? So the way that we measure an effective delivery system is by your profit margins, okay? So as a rule of thumb, you know, we're looking at between 70 to 80 percent on the gross margin here for delivery of your services. And then on the other side of that, if everything is being executed as according to plan, the way that we measure success

on that front is number of case studies generated for your clients, right? Like what is the transformation that we're seeking to achieve with our offer and with our service and growing that number of case studies is how we measure that as success, right? And then lastly, which is really foundational to the growth of your business and to the profitability and the retention of profits within your business

is client retention, right? So if your delivery process is streamlined and optimized, then you're going to be getting client results and you're going to be generating case studies and your business is literally going to be a case study machine for client success. And when that happens, your clients can't do anything but be stoked to work with you and hire you for multiple projects and work with you

for a lifetime, right? I mean, the goal here is to create lifetime clients that absolutely love your business, they love the work and they'll do anything to work with you. That's the intended outcome here and that is what flawless execution looks like. So we're delivering for clients, we're generating client results and because of that, we're able to, you know, increase our client lifetime value, which is the

third metric that we're optimizing for. And, you know, one of the reasons that so many agencies will never make it past years two, three or four or five is they just have no retention strategy, right? They are inconsistent on delivery, they're inconsistent in results and of course they're inconsistent with client retention. So there's literally just, these are the only three things that matter in terms of your

new model machine, okay? And then in terms of who's actually responsible for which pieces here, so on the execution team, they're going to be managing delivery. On the strategy team, they're going to be optimizing the delivery for client results and they're going to be interfacing with the client and making sure that, you know, all of the data that we're getting is lining up and generating case studies

and really becoming that case study machine. And then lastly, you know, things like upsells and, you know, bigger account strategy, that's handled by the management team, okay? So this is what the roles and responsibility breakdown looks like within your team and we're going to dive into that a bit deeper in just a minute. So there's a few different ways to deliver using this new model machine, okay?

So the first option is a productized delivery method and what that means is it's a clearly defined scope and delivery process that's managed by a business, operations or project manager and it typically involves ongoing status updates, you know, once a week or a few times a month with your clients, okay? The second option here is an in-house delivery system, okay? That also has a clearly defined scope

and customized delivery process but since it's managed by more of a creative director, the delivery process is a bit more custom than the productized option, okay? So there's a little bit more room for client revisions and, you know, some back and forth on that front. There also, again, are ongoing status updates with clients and, again, because the delivery process is a little bit more customized, there are

also some ongoing revisions required with clients. And then third is outsourcing. So this is just selling services that are delivered and executed by a third party. This opens up the door for, you know, a few more variables because you're not controlling everything and so that will require a little bit more maintenance and management work because you're going to be having ongoing status and revisions updates not just

with the client but also with your third party provider, okay? So those are the three different options in terms of how you can deliver using the new model machine. So that said, there really is an optimal new model machine delivery system, okay? And that's what we want to share right now. You know, this has been tested, you know, with tons of agencies over many years and after

spending many hundreds of thousands of dollars, you know, with these different options and really perfecting the model, okay? So what we found is the best system for the new model and really scaling to the level that you want with the profitability that you want, with the freedom inside your business and life that you want, there's really three main elements. So first is it's a bit of a

hybrid delivery process between product ties as well as in-house delivery. So this method includes a clearly defined scope and delivery process that's managed by a business, operations, or project manager and instead of being executed by an outsourced team, it's executed in-house through specialists and contractors and, you know, maybe specialist virtual assistants, okay? But because we manage the delivery process in-house, we're able to really maximize the quality

of service and maximize client results and, of course, maximize client retention, okay? Secondly is ongoing status updates. So this can look one of a few different ways, you know, maybe it's weekly video updates. It could be weekly calls that are either one-on-one or group calls that are typically between a business operations or project manager and client to ensure accountability and, of course, client success, okay? So some

sort of weekly touch base or monthly touch base to make sure that the client's executing, that the delivery team is executing, and just making sure that we are moving towards that intended client transformation, okay? So that is the second piece, and then the third piece are client success materials. So things like onboarding materials, things like worksheets and additional resources that are delivered to provide clarity on expectations,

delivery, and responsibilities for client success. So for example, this video training, this would be a client success material, right? You know, you're getting access to a program, you're getting access to training and systems and materials and worksheets for you to implement, and ultimately transition into the new model. So this is how we ensure your success, okay? So those are the three pieces that are essential, and what

we've identified as the optimal new model machine for scaling to six, seven, and even eight figures as an agency. So in terms of what this workflow looks like, you know, here or again, you know, this is not necessarily a one-size-fits-all method, but you know, this is what we've found after many years of testing and optimizing and refining the system, okay? So the workflow that we're looking at

is something like this. So first let me break down the three different types of work that is being done on the delivery side for this system, okay? So we have the management team, we have the strategy team and the execution team. So the management team is typically going to be led by a business, operations, or project manager, and if you don't have someone like that yet on

your team, then chances are you as the founder are going to be responsible for these functions of the business, okay? The next piece is the strategy piece. So these are things like specialists and contractors that are hired for a very specific purpose that are typically only required for, you know, one piece of the scope on your new model offer delivery. And then lastly is execution. So these

are specialist virtual assistants that are usually experienced in performing a very specific system or operation within the business. You know, these are going to be things like, you know, setting up tech, you know, implementing technology, implementing different campaigns, and optimizing a few different things at the admin level, okay? So again, what we're optimizing for is delivery and profit margins, secondly results and case studies, and then third,

retention and client lifetime value, okay? So what we've broken down here is what we found as our optimal level of involvement in terms of this new model machine, okay? So on the execution side, that's going to be going on every single day. On the strategy side, we're going to be constantly seeking to improve our service and our quality of work so that, again, we're optimizing for client

results, okay? So those two things are happening on a daily basis. On a weekly basis, you know, we're going to be reflecting on the previous week and reviewing the data and reviewing the different touch points with our clients and figuring out, okay, how do we make the service better and better to optimize for even more and more case studies, okay? So what we found is a weekly

cadence for that, and a weekly sort of optimization is really critical. And on the management side, you know, once you have a month of data and you have, you know, a month of client touch points and results to look at, then you can really start optimizing the system and the workflow and the machine, okay? So we recommend that you set aside, you know, maybe an hour or

so every single month as a manager or as a founder to really optimize this new model offer. And then every few months and, you know, potentially also monthly, but monthly to quarterly, typically is when you want to actively be seeking out ways to better serve your existing client base and, you know, upsell them on the next level of your offer, you know, graduating them into your value

ladder and, you know, again, increasing that lifetime value while delivering an immense amount of value to your existing clients. So that is the workflow that we recommend as well as the suggested levels of involvement and the frequency behind those different interactions. So once we've helped you map out your new model offer, which we also have a action item and a worksheet for that takes you step by

step through this process, you know, we want to make sure that this new model offer is profitable and scalable. So there's three pieces that need to happen here. First, we need to define the scope of your new model offer by breaking it down into key phases of your client transformation and then taking those phases and breaking those phases down into steps within each phase. So you're going

to take this and you're going to input this information into the provided calculator template, which will provide and which I'll walk you through in another training. Then secondly, you want to assign and categorize each step of your scope as either a management strategy or execution task. Then from there, what you're going to do is you're going to assign those tasks to your existing team or you're going

to go out and hire the right people to help you implement this new model offer. And then third is we're going to go ahead and calculate the production costs and the margins of your new model machine. So we're going to enter low and high estimates into each step of the delivery process to calculate it, the estimated production costs and margins for delivery. So after you've gone through

the new model offer design worksheet and you're ready to start mapping out the numbers and the metrics and the margins that are going to be powering this machine, we have a new model machine calculator worksheet right here. So we break down step by step exactly what you need to do to figure out exactly what every single step and every single phase looks like of a successful new

model offer delivery system. So we have step by step instructions as well as a few examples here. And then if you go ahead and click on this calculator worksheet, we have a template that you can take and make a copy of so that you can go in and start plugging in the numbers and figuring out exactly what those numbers look like. So first what you'll do is

is define your phases, then map out your steps, then you'll map out who or what type of task that each step is, who are the roles responsible, figure out the low and high estimates of the production costs, enter in their rates and you'll figure out those costs there. And then on the second sheet here, it will go ahead and spit out exactly what type of numbers we're

looking at, what type of profit margins we're looking at. So yeah, go ahead, this is the second piece of this week's action items and agenda. So after you've mapped out your new model offer, go ahead and dive into the new model machine calculator worksheet here. So the next piece is assembling your army. So building out your tools, building out your team, building out your technology stack to

really make this transition to the new model effective and efficient. So again, what we're looking at here is the new model machine workflow. So I just went through this, but again, we're looking at the execution and the strategy of the delivery side on a daily basis. We're looking at the optimization of client results on a weekly basis for the strategy team and on at least a monthly

basis for the management team. And then lastly, we're looking at client retention and how to increase that client lifetime value on a monthly to quarterly basis, which is handled by the management team. So this is just kind of a helpful guide. This is, these are the kind of numbers that you can expect when it comes to actually building out your team and building out your army to

help you implement this new model machine. So again, this is not the cold hard gospel, if you will, but these are the numbers that we've found make sense. And what you can expect when it comes to hiring either a project manager or a business or operations manager or hiring specialist contractors or hiring specialist virtual assistants. So we're typically looking at hourly rates for project managers of five

to anywhere to 15, sometimes $20 an hour, business operations and those types of managers for anywhere from say 15 to $35 an hour, whereas the highly specialized contractors and specialists, you know, anywhere from $25 to $200. So again, refer to this, you know, just as kind of helpful guidelines. And of course, you know, ask your mentors and post in the group for support when it does come

down to you having to go out and hire. And in another training in this week, we're going to break down exactly how you can go out and hire. We're going to provide you with done for you job listing templates and really everything you need to know to start building your team tomorrow. So again, just to kind of break down what that team structure looks like. And so

you can really kind of understand, you know, what your team is going to be looking like over the next few months, you know, this is this is what we recommend and this is what we've found is the best structure for the new model machine. So on the execution side, that's typically made up of outsourced contractors or assistants before transitioning them into in-house specialized virtual assistants. So their

role and the role of the execution team in the new model machine is to deliver the new model offer, okay? So they report to the strategy and the management teams, okay? So they're all about execution. Secondly is the strategy team and that's typically made up of specialists and contractors that are hired for a very specific function of the new model machine. So the role of this team

is to optimize for client success and become a case study machine. So they report directly to management. And then third is the management team. This is typically led by the founder or the business owner before they end up hiring a business operations or project manager, okay? So the role of the management team in the new model machine is to optimize for client success and client retention. And

they are looking at the big picture here and constantly seeking to improve how effective the new model machine is and again optimizing for delivery, client success, client results and client retention. So in terms of the tools and technology that are required as well as the different functions of the business that they're used for, what we have found is the best cadence and frequency for team communications is

first to standardize your communications. So what we found works best for teams is to communicate daily on Slack, okay? And then in terms of defining the weekly strategy, you know, whether you're doing a one week or a two week sprint, you know, that's something we'll get into a little bit later, but it's important that everybody on the team is setting the weekly strategy on Mondays and, you

know, everybody's getting excited about the plans for the upcoming week. And then at the end of the week, it's important that the team reviews what went down that previous week. So what we recommend is usually on a Thursday or Friday, you know, it can start with meetings and then eventually move to video updates or something like that. But if you're just kind of getting into a communication

cadence with your team, we recommend to have at least those beginning of week and end of week touch points as meetings in addition to daily communications on Slack. So that's team communication. Secondly is task and project management. So what we have found works best is to organize all of your business systems in Google Sheets to create those systems and processes in Google Docs and to map out

your daily, weekly and monthly execution and tasks in Trello or your favorite project management tool. It might be Asana, it might be Basecamp, you know, whatever works best for your organization, that's what we recommend. But it is important that you do standardize these things. And again, if you have any specific questions about this, go ahead and ask your mentors on our weekly systems call and we'll be

able to specifically recommend, you know, what tools are best for your business. Next is client success material. So we are going to be providing you with an onboarding guide template as well as some other resources for client success. But what we recommend is the onboarding guide in Google Docs and onboarding or what to expect video as well as weekly updates and support in some form, you know,

again, that doesn't necessarily need to be calls or one-on-one calls, it can be group calls, it can be video updates, whatever makes the most sense for your clients. But there definitely should be some sort of update and ongoing support. And then typically setting the expectation that within 24 to 48 hours, you and your team will be able to get back to your clients. So that is client

success. The next piece here is automated outbound growth machine, which we've covered in a previous module. And that includes things like your growth scorecard, your outreach scripts, your Facebook and LinkedIn profiles for yourself as well as your team, LinkedIn sales navigators to really get clear on your targeting and your automated outbound campaigns. And then lastly, Phantom Buster to link up some of those APIs, which again, we've

walked you through. If you need any help with implementing that, again, go ahead and post a question in the group or ask it on one of our weekly mentorship calls. So that is the new model machine tools and tech, okay? So just to kind of recap, everything that we've just covered, we've gone through at a high level the transition to the new model and the mindsets behind

why we want to make that transition from done for you services and the old broken agency model trap to the new model, right? And the reasons for doing that and the reasons that you should be excited about doing that, right? Next is how to escape the agency trap by designing your new model offer. Then after that, the flawless execution using the new model machine. Again, we're talking

about how to optimize for delivery, how to optimize for client results and turn your business into a case study machine. And then lastly, make sure that everything you're doing is supporting client retention and retention of your clients and that shows up in the metric of client lifetime value. So for this, what we help you with is we have a new model machine calculator that will allow you

to break down your new model offer and figure out exactly to the dollar what those margins look like, what your profitability looks like before you get ramped up. And then lastly, is assembling your army. So we'll have another training that walks you through some more templates, some more resources to really just make sure that you're able to begin executing using this new model machine and that you're

able to successfully transform from the old model to the new model. So that's what this week is all about and I can't wait to see you in on the next training.