Black Entrepreneur Blueprint 540 - Jay Jones - How To Increase Income By Firing Problem Clients

[00:00:12] Welcome to Black Entrepreneur Blueprint, the number one podcast and resource for Black entrepreneurs.

[00:00:19] I'm your host Jay Jones and Black Entrepreneur Blueprint was created specifically to educate and inspire Black entrepreneurs to launch, build and grow successful, sustainable businesses.

[00:00:32] Join us as we help build an economic power base in the worldwide Black community by building and supporting Black-owned businesses.

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[00:00:50] Welcome to the BEB family and get ready to elevate your entrepreneur IQ.

[00:01:00] Welcome to the Black Entrepreneur Blueprint episode number 540.

[00:01:07] I'm your host Jay Jones and today we have another outstanding and informative show in store for you.

[00:01:13] Today we're going to be doing a rebroadcast of one of our most downloaded and impactful shows from November of 2023 titled

[00:01:22] How to Increase Income By Firing Problem Clients.

[00:01:26] How to Increase Income By Firing Problem Clients.

[00:01:31] Now, let's get ready for today's show content.

[00:01:33] Today's show topic is titled How to Increase Income By Firing Problem Clients.

[00:01:40] How to Increase Income By Firing Problem Clients or Customers.

[00:01:46] You know, many entrepreneurs are so hungry for business that they cost themselves income by working with problem clients or clients that don't fit their profile and cause more problems than they're worth.

[00:01:59] So, on today's show I'm going to dive into the process of why you need to fire problem clients or customers and how to make sure you attract the right customers or clients.

[00:02:09] So, we're going to talk about what the problem is, why you have the problem, and what is the solution to the problem.

[00:02:17] And I'm going to give you guys some real life examples.

[00:02:20] But before we get to today's content, let me just share a few things with the Black Entrepreneur Blueprint family.

[00:02:25] First and foremost, I want to welcome all first-time listeners to Black Entrepreneur Blueprint.

[00:02:30] Welcome to the BEB family.

[00:02:33] Please stick around until the end of today's broadcast.

[00:02:35] And I'm going to share all my social media contact information and resource links such as the link to my latest book,

[00:02:43] Unlocking the Power of Chat GPT, The Ultimate Prompting Guide for Beginners.

[00:02:48] You can go to unlockingchatgpt.com for more information.

[00:02:53] Also, don't forget to take advantage of three days free access to BEB Academy, which is our online learning portal,

[00:03:01] where we have all types of online courses, masterclasses, PDF downloads, and resources to help you elevate your entrepreneur IQ.

[00:03:10] You can go to the website blackentrepreneurblueprint.com, and at the top of the website, you'll see BEB Academy.

[00:03:18] Make sure you sign up and get three days free access, and you have access to all the content inside the Academy.

[00:03:26] Now, let's get ready for today's content.

[00:03:29] Today, we're going to discuss and dissect how to increase income by firing problem clients.

[00:03:35] How to increase income by firing problem clients or customers.

[00:03:41] So, it doesn't matter if you're in the service-based business or you're in the product-based business.

[00:03:47] This episode is something that you really want to hone in on because I'm telling you right now,

[00:03:53] if you have a bunch of problem clients or customers, that's going to make your business miserable,

[00:03:58] and I guarantee you, you will not be able to operate at maximum efficiency.

[00:04:04] So, make sure you stay locked into today's episode.

[00:04:07] So, what we're going to do today, guys, is we're going to talk about what the problem is,

[00:04:12] why you have the problem, and what the solution to the problem is.

[00:04:17] And I'm going to give you guys some real-life examples and actionable steps to help you move from point A to B.

[00:04:23] And that's what this is all about.

[00:04:25] It's not just about talking.

[00:04:26] It's about giving you guys actionable steps to complete your goals and hit your objectives.

[00:04:32] All right.

[00:04:33] So, what is the problem?

[00:04:35] So, the title of the show is actually the problem.

[00:04:37] How to increase income by firing problem clients.

[00:04:40] The problem is you have too many problem customers or clients that are holding your business back

[00:04:45] by either sucking too much time, energy, and or resources from your business or yourself.

[00:04:53] Now, what this is doing is preventing you from working with more clients that are more apt to buy your products or services.

[00:05:00] So, you have to understand you have limited time.

[00:05:03] And you need to be able to focus on customers or clients that make sense and fit your avatar.

[00:05:09] So, you also don't want to have clients that are not worth the headache.

[00:05:15] And trust me, I'm dealing with a couple right now.

[00:05:18] And I'm going to give you some real-life scenarios just to show you that it happens to everybody.

[00:05:24] But we're going to talk about this and we're going to talk about the solutions.

[00:05:29] So, let me give you guys some signs that you have a problem.

[00:05:32] All right.

[00:05:33] So, when that client or customer calls or contacts you, you don't want to talk to them or respond to them.

[00:05:40] That's number one.

[00:05:41] That's the biggest red flag that you're going to get.

[00:05:44] You see that phone number pop up on your phone.

[00:05:46] You're like, oh my goodness.

[00:05:48] I don't feel like talking to this joker right here.

[00:05:51] Or you get an email that you need a response from.

[00:05:54] So, the signs that you have this problem in terms of bad customers or bad clients is number one,

[00:06:01] when the client or customer calls or contacts you and you don't want to take that call or even deal with that customer.

[00:06:09] Another sign that you have a problem is the client and customer always has a problem with something and is never satisfied.

[00:06:17] Have you ever given your best work or best product or best service to a customer and they're never satisfied?

[00:06:25] That's a problem.

[00:06:26] Because those type of customers are going to slow down your productivity and obviously affect your money in a negative fashion.

[00:06:34] So, when I talk about people that are never satisfied, I have this uncle, right?

[00:06:40] And every time we go to a restaurant, the food is never good enough.

[00:06:45] Oh, this is cold.

[00:06:46] I don't like the taste of these green beans.

[00:06:49] I don't like this or I don't like that.

[00:06:51] I'm telling you right now, I've never been to a restaurant with him without him complaining about something.

[00:06:58] Oh, this drink doesn't taste well, doesn't taste good.

[00:07:01] And it's funny having worked in restaurants years ago when I was in college.

[00:07:06] I know what happens when you send that plate back a couple of times, right?

[00:07:10] You send in a plate back.

[00:07:11] Man, I've seen and been in restaurants and kitchens where people would drop steaks on the floor.

[00:07:16] They throw them back on the grill, I guess, to burn off the germs and throw them back on the plate.

[00:07:22] I've seen people do other things to food to annoying customers that were never satisfied.

[00:07:27] And it's crazy.

[00:07:29] But yeah, I got an uncle.

[00:07:30] Every time we go to a restaurant, there's a complaint about something.

[00:07:34] And it's not it's not once in a while.

[00:07:37] It's I don't care if it's a five star Michelin five star restaurant or whatever.

[00:07:41] There's always a complaint.

[00:07:43] So these are some of the signs that you have a problem.

[00:07:46] Your client or customer always has a problem with something and is never satisfied.

[00:07:51] Another red flag or another sign is that the work that you do for your client or customer is not worth the time or aggravation.

[00:08:00] It's not worth your time or aggravation.

[00:08:02] If you're not making enough money to compensate for that time and aggravation, you need to get rid of that customer.

[00:08:09] Because inevitably what they're going to do is they're going to slow you down and you're missing out working with more ideal customers while you're dealing or messing around with some of these nuts.

[00:08:20] OK, so these are some of the signs that you have that problem.

[00:08:24] And we're talking about how to increase income by firing problem clients or problem customers.

[00:08:31] Now, let me tell you why you have that problem.

[00:08:35] And this is something I want you guys to pay attention to.

[00:08:39] The reason that you have this problem, there's several reasons.

[00:08:43] The first reason is you don't have enough of the right prospects.

[00:08:47] So you're working with anybody.

[00:08:50] You don't have enough of the right prospects.

[00:08:52] So you're going to work with anybody.

[00:08:53] You're actually desperate.

[00:08:55] OK, I'm not going to be able to generate revenues.

[00:08:58] I know this customer is a pain in the butt.

[00:09:01] They're not my ideal customer.

[00:09:02] But guess what?

[00:09:03] I don't have any other customers.

[00:09:05] So I'm going to work with this customer anyway.

[00:09:08] And short term, you know, I get it.

[00:09:10] It's a solution.

[00:09:11] But long term, that's going to stop you from scaling your business.

[00:09:15] OK, now, speaking of another example, when I had my first mortgage company years ago and I'm back in the game now.

[00:09:23] So I got a couple of stories what's going on now.

[00:09:26] But when I had my first mortgage company, I hired one of my good friends, one of my best friend's brother, who's actually a good friend of mine also.

[00:09:36] And, you know, we taught him the business, gave him the opportunity to earn more money than he ever did before.

[00:09:42] And the problem was we used to he used to walk around the office and he'd be holding like these two files in his hand.

[00:09:50] He's like files that he was trying to work on and trying to close.

[00:09:53] Now, I'm explaining to him.

[00:09:56] I'm like, dude, the chances of you closing these loans based on the credit profile, the situations that each of the borrowers was going through a prospective borrowers was going through.

[00:10:08] I said, you're probably not going to be able to close these loans.

[00:10:12] So stop holding on to them like they're baby.

[00:10:14] I literally would laugh because he'd walk around the office and he had these files under his arm.

[00:10:20] I'm like, dude, the solution is you got to get more people in your pipeline.

[00:10:25] You can't you can't bank on and especially in this business and the mortgage business, if you get 10 prospects, you'll be lucky if you close five loans because they're all types of individual situations and issues that occur when you're trying to get a loan close.

[00:10:42] It could be the customer's credit, their finances, the rates, whatever it is.

[00:10:47] And so that was the big thing with him.

[00:10:50] You don't have it.

[00:10:51] He didn't have enough prospects to work with.

[00:10:54] So he was trying to work with anybody because he was desperate.

[00:10:58] OK.

[00:10:59] Another reason why you have this problem is you haven't devised a system to attract the right type of prospects.

[00:11:06] OK, going back to what I just said, why are you going to work with somebody or an avatar that doesn't make sense for your business when you can work with an avatar that does make sense?

[00:11:17] So when you're in a business, I don't care if it's selling physical products, digital products or services or whatever.

[00:11:23] You have to have a system to attract the right type of prospect.

[00:11:27] You have to make them raise their hand.

[00:11:29] OK.

[00:11:31] Yeah.

[00:11:31] Hey, I'm interested in what your product or service is or what your solution is to my problem.

[00:11:37] You got to make them raise their hand.

[00:11:40] Another reason that you're having this problem is you haven't told enough people what you do and who you can serve.

[00:11:48] You haven't told enough people what you do and who you can serve.

[00:11:51] So if people don't know what you do, your friends, family or whatever, or your network, if they don't know what you do, how do you expect to get business from them?

[00:12:00] Now, here's something very simple in terms of marketing to your current network that you can do.

[00:12:06] That's absolutely free.

[00:12:08] OK, so if you go into your phone and you just create 10 voicemail messages, right?

[00:12:17] Not calling and leaving a voicemail message.

[00:12:20] You know how you can create a message on your phone and then you can send it to somebody on the iPhone.

[00:12:25] I don't know.

[00:12:26] I'm sure Android probably has something similar to that.

[00:12:29] But all you do, take 10 people a day, create the message and just send it out.

[00:12:36] Something simple as a quick little elevator pitch.

[00:12:39] OK, for example, hey, John, this is Jay.

[00:12:42] Just wanted to touch base with you.

[00:12:44] I just wanted to let you know that I'm back in the mortgage business and I help people living in apartments buy their first home by showing them a simple system to get approved for a mortgage.

[00:12:54] If you know anybody that's interested, please give them my number or reach out to me.

[00:13:00] And I greatly appreciate it.

[00:13:02] All right.

[00:13:02] Simple elevator pitch.

[00:13:04] So you record the message and you send the recording to 10 people a day in your phone.

[00:13:10] And if you're having trouble creating what I call an elevator pitch, it's I use I call it the ABC statement.

[00:13:17] I help a do B by C.

[00:13:21] I help a whoever your target customer is do B whatever that action is by C.

[00:13:29] Once again, I help people living in apartments buy their first home by showing them a simple system to get approved for a mortgage.

[00:13:37] I help a do B by C.

[00:13:40] OK, that's a simple way to create an elevator pitch or what I call an ABC statement.

[00:13:46] Now, for me in the mortgage business, since I'm back in the game, that's just one area that I work with.

[00:13:54] First time home buyers.

[00:13:56] I also work with people that are looking to refinance, be a debt consolidation, investment property buyers, all types of stuff.

[00:14:04] So depending upon who I'm talking to, you may want to tailor the message, you know, specifically.

[00:14:09] Or if it's something that you do in general, if you're a tax preparer and you're looking to help people prepare taxes for the season, then it could be something as simple as that.

[00:14:21] But why do you have these problems?

[00:14:24] All right.

[00:14:25] Number one, you don't have enough for the right prospects.

[00:14:27] So you're working with anybody.

[00:14:29] Number two, you haven't devised a system to attract the right type of prospects, meaning you haven't made people raise their hand.

[00:14:36] And number three, you haven't told enough people what you do and who you can serve.

[00:14:42] Now, that example I gave you, that's a free way every day.

[00:14:46] Just go in and record a message, you know, 10 messages a day for 10 individuals.

[00:14:51] Go through your whole phone.

[00:14:52] And within a couple of days, you'll probably reach everybody on it.

[00:14:56] It's totally free.

[00:14:58] Another way to get your message out, you haven't told people what you do, obviously, is advertising.

[00:15:03] So or marketing, it could be paid, you know, Instagram, Facebook, whatever.

[00:15:07] Or it could be something if you have your own platform, you know, like a podcast blog or whatever, then newsletter, you can get the information out that way.

[00:15:17] So what's the old saying?

[00:15:19] A closed mouth doesn't get fed.

[00:15:21] So you don't want to sell people.

[00:15:24] Just let them know, hey, this is what's going on with me right now.

[00:15:28] If you're interested or you know somebody that's interested, please give me their number or have them reach out to me.

[00:15:36] And that way you can go in and find some new customers very easily without spending a lot of money.

[00:15:44] Once again, I'm sure most people probably have at least 100 people in their phone.

[00:15:49] Right now, once again, you know, grandmom is 99 and you're in the mortgage business.

[00:15:55] You're probably not going to send that voice message to grandmom, right?

[00:15:59] Because she's probably not in the market to buy a property.

[00:16:02] But just be diligent in terms of going through and doing that.

[00:16:06] Simple things like that, you know, creating content so people will raise their hand.

[00:16:13] And we're going to talk more about that in a little bit.

[00:16:15] But today we're talking about how to increase income by firing problem clients.

[00:16:21] Problem clients are customers.

[00:16:23] They suck you dry.

[00:16:24] They drain your energy.

[00:16:26] They drain your resources.

[00:16:27] And you have to determine if that prospective customer is even worth dealing with it.

[00:16:33] Right now, my mortgage business, I'm actually going to fire a customer after I get through this last loan.

[00:16:41] So this guy is a pain in the you know what.

[00:16:45] And I'm trying to explain to him, you know, my process, how everything works.

[00:16:51] And the rate is what it is, not based on what Jay Jones says, but based on your credit profile and what you're trying to do.

[00:17:00] Well, why, you know, why is my appraisal this amount of money?

[00:17:04] Why is my rate this?

[00:17:06] And I've been trying to break it down.

[00:17:08] And I'm telling you, for the minuscule loan that he's doing, I'm not really making any money because I normally don't take loans of that size because they're more problems than they are worth.

[00:17:20] And it's not meant to be a knock on somebody.

[00:17:23] But it's easier for me to do a million dollar mortgage than it is to do a hundred thousand dollar mortgage.

[00:17:29] And the reason is, number one, I don't make a lot of money on a hundred thousand dollar mortgage versus a million dollar mortgage.

[00:17:37] If I'm making two and a half to three points.

[00:17:39] So you're talking 30 grand on a million dollar mortgage and three grand on a thousand.

[00:17:45] I mean, a hundred thousand dollar mortgage.

[00:17:46] Not that three grand isn't good.

[00:17:49] But many times when you look at your avatar, there's a reason that you target specific customers.

[00:17:56] Now, my average loan amount is about four hundred to five hundred thousand dollars.

[00:18:02] But I do do hundred thousand dollar loans and I do million dollar loans also.

[00:18:07] I do purchase, refis, debt consolidation, all that good old stuff.

[00:18:11] But for the aggravation it takes for me to work with this guy, it's not even worth it because he's messing up my flow.

[00:18:21] He's messing up my mojo, dealing with this nonsense, answering the same questions I've answered multiple times.

[00:18:31] Yo, you don't fit my profile.

[00:18:33] You're wasting my time.

[00:18:34] You're not going to do or help me get where I need to get because you're clogging up my pipeline.

[00:18:40] Now, there are other people that have hundred thousand dollar loans that follow the program.

[00:18:45] They understand, hey, this is what I need.

[00:18:48] When I tell you I need A, B and C, I need A, B and C.

[00:18:52] Don't complain to me when the loan is slowing down, when you haven't gotten me the documentation that I requested from you in a timely fashion.

[00:19:00] So we're going to talk about the solutions in a minute.

[00:19:03] But I promise you this is the last loan that I'm ever going to do for this guy because he does not fit my avatar.

[00:19:12] And he's giving me agita every time I see the phone number come up in my phone.

[00:19:17] I'm like, man, what does this dude want now?

[00:19:19] What is the problem now?

[00:19:21] You ever have people like that?

[00:19:23] And it could be in your personal life or social life.

[00:19:25] You see the phone number come up.

[00:19:27] You're like, damn, what what's the problem now?

[00:19:30] You know, what am I going to have to deal with today?

[00:19:32] It could be family members, friends, you know, in relationships or whatever.

[00:19:36] But yeah, that when that dude's phone number comes up, I'm telling you right now, I'm like, here we go again.

[00:19:43] So we've talked about what the problem is, signs that you have a problem, some of the red flags.

[00:19:50] Why do you have the problem?

[00:19:52] Now, let's talk about the solutions to the problem.

[00:19:56] And this is the key right here.

[00:19:57] So I want you guys to lock in and really pay attention to the solutions to this problem.

[00:20:03] So the simple answer is, guys, you have to attract the right clients or customers.

[00:20:09] You have to prospect in a way that's going to bring in the right potential clients or customers.

[00:20:16] That's the solution to the problem.

[00:20:18] Now, let's break that down.

[00:20:20] All right.

[00:20:21] The first thing that you want to do, guys, is you want to lay out your business process up front.

[00:20:27] What is your process of doing business?

[00:20:30] Hey, Jay, if you want to be a one of my coaching clients, this is my process.

[00:20:38] It's ABCDE, whatever it is.

[00:20:40] So lay out your business process up front.

[00:20:43] Now, you do it in a way that's going to repel problem clients or customers.

[00:20:48] So you lay your process out in a way that's going to repel your problem clients slash customers,

[00:20:55] or it's going to repel people that are not in your avatar.

[00:21:00] So what you have to think about is, who do you work with?

[00:21:03] Who is your avatar?

[00:21:04] And then you tell them, this is my process.

[00:21:08] And I'm just going to use my new mortgage business as an example.

[00:21:12] So first, I'm going to need to ask you some basic questions to see if working together makes sense.

[00:21:19] And when I say this, what I'm doing is I'm positioning myself at a different level.

[00:21:26] I'm not just going to take your business.

[00:21:28] Let me see if this makes sense to both you and me.

[00:21:33] Next, I'll say, I'll need to know some basic information to see if I can even help you.

[00:21:39] Now, once that's determined, here's what to expect.

[00:21:43] So I'm going to need to grab some basic information.

[00:21:46] What's the scenario?

[00:21:47] Are you looking to purchase?

[00:21:49] Are you looking to refi with cash out?

[00:21:52] Is it debt consolidation?

[00:21:53] Whatever.

[00:21:54] And then I go through those questions.

[00:21:57] And basically what I'm doing is I'm qualifying them.

[00:22:00] Then if I determine that it makes sense to work with them and that I can help them,

[00:22:07] then what I do is I break down and I make sure and confirm that they understand the process and agree to it.

[00:22:16] I confirm that they understand the process and agree to it.

[00:22:20] Okay, Mr. Brown, this is how the process works.

[00:22:23] Now I'm going to take down a full mortgage application to help you purchase your first home or whatever the scenario is.

[00:22:31] Now, I need you to understand several things.

[00:22:34] Number one, I need you to talk to me like I'm your attorney.

[00:22:39] There should be no stones unturned.

[00:22:41] And when I ask you questions, I need the correct answer because I need to present your loan in a manner that's going to be acceptable to the lenders, to the banks.

[00:22:52] Okay, now during this process, there are going to be several things that I'm going to ask of you.

[00:22:59] Number one, when I ask you for specific documents, I need you to return those documents in a timely fashion.

[00:23:06] If you don't return the documents in a timely fashion, then the whole process gets slowed down and muddled.

[00:23:14] Also, I need you to understand when I ask you for specific documents, I need the specific documents.

[00:23:21] So when I ask you for a bank statement, I don't need the actual transaction record.

[00:23:28] I need a PDF printout of your actual bank statement with all the pages.

[00:23:33] Now, I'm just using this as an example.

[00:23:35] This is one of the things that I say.

[00:23:37] So I want you to understand that this is the process.

[00:23:40] And are you comfortable with that process?

[00:23:44] And I get them to tell me yes.

[00:23:46] So whatever your process is, you go through the process with them.

[00:23:50] Let them know what it is and ask if they confirm and understand the process.

[00:23:57] I even go one further.

[00:23:58] I've created my own form that actually details my process and has check boxes by everything I talk about.

[00:24:06] And at the end of the form, they have to sign the form.

[00:24:09] So now, once again, I've laid out my business process up front.

[00:24:14] I've gone over it.

[00:24:15] They understand it and they signed it.

[00:24:18] So this actually gives more of a commitment to understanding the process.

[00:24:23] And what it does, if there's an issue or a problem, I refer back to this form.

[00:24:29] Hey, remember when we initially talked?

[00:24:31] I went over everything about the process.

[00:24:34] You check the boxes that you understood and you signed it at the bottom.

[00:24:38] Remember that, Mr. Brown?

[00:24:39] Oh, yeah, you did say that.

[00:24:41] Yeah.

[00:24:41] Okay.

[00:24:42] All right.

[00:24:42] Problem solved.

[00:24:44] Okay.

[00:24:44] So the solution to the problem is to attract the right client or customers.

[00:24:49] The first component is lay out your business process up front.

[00:24:53] In a way that will repel problem clients or customers and attract the ones that you want.

[00:24:59] The second thing you need to do is you need to give your customers or prospects a realistic expectation of the process and what you expect from them and what they can expect from you.

[00:25:11] All right.

[00:25:11] You also want to provide realistic timelines.

[00:25:15] Okay.

[00:25:16] What do I expect from you, customer?

[00:25:18] I expect you to be prompt in terms of getting me that documentation.

[00:25:22] And on my part, I'm going to make sure that I'm going to keep you abreast of the loan process as we move forward.

[00:25:29] And I'll keep you informed of anything that needs to be taken care of or whatever it is.

[00:25:35] So even if you're selling physical products, right?

[00:25:38] Give them realistic expectations of the process.

[00:25:42] Okay.

[00:25:42] You ordered the product today.

[00:25:44] It's going to be anywhere from five to seven business days for you to receive your physical product.

[00:25:50] You know, most people, if they order on Amazon, they'll have the product even the same day, next day or the latest two days unless it says something.

[00:25:59] So you need to give them realistic expectations and also timelines.

[00:26:05] So when I'm talking about a new mortgage purchase, I usually have a timeline of 30 days.

[00:26:12] Now I can get it done faster if the client is working with me and providing the documentation and the things I need in a timely fashion.

[00:26:20] So if it's a cooperative type of situation, you can only move as fast as the other party allows you to.

[00:26:27] So right now we're talking about how to increase income by firing problem clients.

[00:26:32] And we're talking about solutions to the problem, which is really attracting the right client or customers.

[00:26:38] Number one, you want to lay out your business process up front in a way that's going to repel problem clients or people that don't fit your avatar.

[00:26:46] Number two, I'm talking about now, give them realistic expectations of the process and what you expect from them and what they can expect from you.

[00:26:56] Number three, this is big guys.

[00:26:59] You want to identify the true value of a client or customer and decide if the client meets or exceeds your revenue standards.

[00:27:16] All right. So you're in business to make money, right?

[00:27:20] I get it. Sometimes you do things to help people out and there's nothing wrong with that.

[00:27:25] But the bottom line is to make money.

[00:27:28] So does this customer or prospect, do they meet or exceed your revenue standards?

[00:27:35] So I gave you the example before, right?

[00:27:38] In terms of my loan amounts, okay?

[00:27:41] And the revenue on small loans, certain loans, because of regulations, you can only make X amount of dollars.

[00:27:48] So if I'm doing an $80,000 cash out refinance and I'm making two points on that, that's $1,600, right?

[00:27:58] Now, if it's a simple, clean deal, I'll do it.

[00:28:02] But if it's somebody that doesn't have their paperwork together, they got all kinds of issues and stuff like that,

[00:28:09] it's really not worth my while spending time to make $1,600 on an $80,000 loan when I can do an $800,000 loan and make $16,000 or whatever I'm going to make on it.

[00:28:22] So you have to identify what the value of that client or customer is.

[00:28:27] Now, in my business, in the mortgage business, you're probably not going to get a mortgage, you know, again for many, many a year unless you're refinanced.

[00:28:36] But if you have a business that you're selling physical products or services, they may use your physical products or services more often.

[00:28:43] So you have to look at the lifetime value of that customer.

[00:28:47] Okay, so every situation and scenario is different, but you have to identify the true value of a client or customer and decide if that client meets or exceeds your revenue standards.

[00:28:59] Because this is what happens, guys.

[00:29:01] When you start doing all these deals and then you start looking at your real net profit per sale or per unit or per service, whatever you're doing,

[00:29:11] and you really start to understand that, damn, I'm only making $300 on the deal and that's all I'm doing versus making, you know, $1,000 on a deal.

[00:29:23] And I can do fewer deals and I can do fewer deals and be more profitable or I can do a lot of small deals and have more problems.

[00:29:30] So you have to understand where your money is coming from and does that revenue meet or exceed your revenue standards?

[00:29:37] Many of you guys don't even have revenue standards, all right, because you're just trying to take anything, kill anything that comes into your zone, right?

[00:29:46] So it doesn't matter what you're hunting for.

[00:29:48] If a rabbit comes in there, you're going to eat rabbit tonight, right?

[00:29:51] But if a skunk comes in there and you don't care what's in your zone and you kill that skunk, you're going to eat skunk and it's probably not good.

[00:30:00] All right.

[00:30:00] So the thing is, you have to be very intentional and strategic in terms of your client portfolio.

[00:30:08] OK, so that's number three.

[00:30:11] And we're talking about solutions to the problem.

[00:30:13] And we're really talking about attracting the right clients or customers.

[00:30:17] Number four, position yourself or your business as the authority and solution for your customer problems.

[00:30:26] This is big guys.

[00:30:27] Position yourself or your business as the authority and solution for your customer problems.

[00:30:34] If people don't perceive you as an authority or the solution to their problems,

[00:30:41] then it's going to be hard for them to do business with you.

[00:30:45] Now, if you're selling a physical product, now that product has to be the solution or it has to be confirmed or affirmed or validated by others for people to use that product.

[00:30:57] So so if you're looking for a financial advisor, right, you're going to go to somebody that has the credentials or the perception that they are an authority in the business.

[00:31:09] Because that person or that company or whatever has positioned themselves as the solution to your problem or as the authority in that field.

[00:31:20] And let me give you a real life example.

[00:31:22] I've used this example before on probably two or three shows out of the four hundred ninety two that are recorded and uploaded as of this as of this episode.

[00:31:32] So if you heard this story before, bear with me.

[00:31:36] But if you're a new listener or you never heard the previous episodes where I talked about this, really hone in and lock in and understand what I'm saying.

[00:31:44] So when I talk about positioning, right?

[00:31:47] Years ago, I was bought in on a bid as a consultant for one of the world's largest financial consulting firms.

[00:31:55] You know, S&P top 50 firm.

[00:31:59] All right.

[00:32:00] Now, in a former life, I used to be a financial advisor, which we called at the time stockbrokers for Merrill Lynch and also Dean Witter Reynolds.

[00:32:09] So I've had experience in the business and I did that for about six years and was very successful at the time before I left to start my first real business.

[00:32:19] Now, when I came in, what they wanted me to do was to look at their training program to see if there were ways that I could improve or increase the results from the training program.

[00:32:33] So I'm sitting down and I'm actually looking at this is a real live training program with about one hundred and thirty, one hundred and forty new financial advisors that are just past this series seven and sixty three test.

[00:32:47] And they were teaching them how to generate business.

[00:32:50] Now, remember, we're talking about positioning, positioning yourself or your business as an authority.

[00:32:56] And one of the ways to generate business, they said, was door knocking.

[00:33:01] And I'm looking at this presentation and I'm scratching my head.

[00:33:05] And I'm saying this this can't be real.

[00:33:08] So think about this.

[00:33:10] You're a financial advisor, stockbroker, whatever you want to call it.

[00:33:13] And the program has you going into nice neighborhoods and they had it down to a science.

[00:33:19] I'll give them that knocking on the door, standing back six feet from the door and introducing yourself.

[00:33:26] Hey, I'm Jay Jones from blank, blank, blank.

[00:33:29] I'm not going to call the company's name because I don't want to get sued or whatever.

[00:33:33] And I'm just here to talk to you about your retirement or whatever.

[00:33:38] I forgot what the spiel was.

[00:33:39] So just picture yourself at home on a Saturday or whatever and somebody knocks on your door.

[00:33:47] They're all suited up or whatever.

[00:33:48] And they tell you that they're a financial advisor and they want to manage your retirement or your investment money.

[00:33:55] So the first thing I'm going to think to myself is, number one, who the hell are you?

[00:34:00] Number two, do you even know if I need your services?

[00:34:03] And number three, if you're that good, why are you knocking on doors as opposed to being in your office managing your client's money?

[00:34:13] So to me, you position yourself as a peddler.

[00:34:17] OK, you're a peddler.

[00:34:19] You're not an authority in your space because you're over here knocking on doors to people you don't even know are qualified trying to sell whatever you're trying to sell.

[00:34:32] You're trying to sell your services.

[00:34:33] So when I saw that, my recommendation was you have to discard that totally.

[00:34:40] There are other ways to position yourself where you're not seen as a peddler or a beggar.

[00:34:47] You see, when somebody comes to you, the dynamics of the conversation are totally different.

[00:34:53] So somebody called my office when I was at Merrill Lynch.

[00:34:57] Then I have the upper hand.

[00:34:59] Hey, you called me.

[00:35:00] Hey, I didn't call you.

[00:35:02] I'm not banging on doors, knocking on doors of people I don't know that live in nice houses and ask them to manage their money.

[00:35:09] I couldn't for the life of me understand what numbskull created this program.

[00:35:16] OK, and I'm like, why would anybody with any real money let somebody who's knocking on doors manage their money?

[00:35:24] If you're that good, you should be managing your couple hundred million assets under management as opposed to knocking on strangers doors.

[00:35:34] And so I gave my recommendation.

[00:35:38] I didn't get the consulting gig because I was pretty stern and terse when I when I wrote up my review of the training program.

[00:35:47] But I was being honest.

[00:35:48] I said, how are you positioning yourself when you're looking like a freaking beggar?

[00:35:55] You're looking like a peddler begging for business.

[00:35:58] When you position yourself, you don't beg for business.

[00:36:02] OK, and we're going to talk about that in a minute.

[00:36:05] So number four, position yourself or your business as the authority and the solution to your customers problems.

[00:36:12] So if this guy's out here knocking on random doors, do I have the faith that this guy is going to be able to manage my money?

[00:36:20] Obviously, he doesn't have money under management right now.

[00:36:23] So why am I going to be the first client he has or whatever?

[00:36:27] If they market it to me in a different way, that's something different.

[00:36:30] So say, for example, that this new financial advisor was holding a seminar on retirement.

[00:36:37] They can target people at retirement age.

[00:36:40] They can target people with household income so they have a better demographic.

[00:36:44] And you probably got stuff in the mail about these retirement workshops or these seminars.

[00:36:50] That's a little better.

[00:36:51] I can get down and I can hear the stuff.

[00:36:54] I can ask questions.

[00:36:55] And now you have a little bit of level of credibility.

[00:36:58] Also, you know that you can market online.

[00:37:00] You could send me or direct mail or you can send articles that, you know, I was interviewed in the Wall Street Journal.

[00:37:07] Things to build credibility and positioning, not knocking on random doors for people who don't even you don't even know if they need your product and or service or want your product or service.

[00:37:19] OK.

[00:37:20] And what we're talking about now, solutions to the problem, attracting the right clients or customers.

[00:37:25] Number one, lay out your business process up front.

[00:37:28] Number two, give them realistic expectations.

[00:37:31] Number three, identify the true value of a client or customer and decide if they meet or exceed your revenue standards.

[00:37:38] Number four, I just went through position yourself for your business as the authority and solution to your customers problems.

[00:37:44] Number five, last and definitely not least, create a sales system to weed out bad prospects and attract good prospects.

[00:37:53] OK, a system.

[00:37:55] All right, guys, this is what I talk about all the time.

[00:37:58] So you want to create a system that works when you're not working.

[00:38:02] So a system can be something as simple as a landing page with a video and then you have a follow up process or a call to action.

[00:38:11] So just to give you an example, if I'm looking to attract first time homebuyers, I can put up on YouTube or create a webinar.

[00:38:20] First time homebuyers workshop or seminar how to get approved for your first mortgage.

[00:38:26] I can go through, tell them the what, the why and the how.

[00:38:30] And if you need help, then reach out to me for my free consultation, blah, blah, blah, blah, whatever it is.

[00:38:37] OK, so create a sales system to weed out bad prospects and attract good prospects.

[00:38:43] And when you do this, you tell them what your ideal or good prospect is.

[00:38:49] You tell them up front who this webinar is for and who this is not for.

[00:38:54] OK, so in your sales system.

[00:38:56] Hey, if you're living in an apartment or living at home and you dreamt about buying your first house, this webinar is for you.

[00:39:04] If you have a steady monthly income, you're gainfully employed and you have decent credit.

[00:39:12] Join us for this 45 minute webinar and we're going to teach you how to get mortgage ready.

[00:39:18] Now, if you don't have all those qualifications, don't worry.

[00:39:22] You can still grab the free book, how to get mortgage ready.

[00:39:26] And we're going to talk about employment, credit and how banks determine who gets a mortgage and who doesn't.

[00:39:33] Put your name, email address in and download the free book.

[00:39:37] Or if you're qualified, we'll see you on the webinar.

[00:39:41] So that's just an example of a simple sales system with people that I would direct to a webinar if they're qualified.

[00:39:49] If they're not qualified here, go get the book and learn what you need to do to get ready to get a mortgage.

[00:39:56] And this way, I'm still capturing names either way.

[00:39:59] So the people that aren't ready yet, I'll still be able to put them into my sales system, funnel, whatever you want to call it, and continue to market to them and then be able to bring them up to a point where they're ready to get their first mortgage.

[00:40:14] And that's an example.

[00:40:15] OK, so what you want to do, guys, you want to sift and sort, not sell.

[00:40:21] Sift and sort, not sell.

[00:40:23] You want to sift through, right?

[00:40:26] You want it once again.

[00:40:27] Who's this for?

[00:40:28] Who's this not for?

[00:40:30] So that's how you're sifting and you're sorting.

[00:40:32] Then the people who this is for, some people may be ready to buy right now.

[00:40:37] Other people may be ready to buy six months from now or a year from now.

[00:40:41] That's your sorting.

[00:40:42] Sift and sort.

[00:40:44] You are not selling.

[00:40:46] All right.

[00:40:46] So you don't want to come on a webinar and do this, this, this, this.

[00:40:50] Call me ASAP, blah, blah, blah.

[00:40:53] You need to qualify people first.

[00:40:55] OK, what do they say?

[00:40:56] Selling is repelling.

[00:40:58] Here's another key, too, in terms of sifting and sorting.

[00:41:02] You want to give your prospective customer something to do to get to the information that they need.

[00:41:10] Once again, put in their name and email address, things like that.

[00:41:14] OK, so let me give you a real life example with that.

[00:41:17] So you want them really to raise their hand and show that they're truly interested in your product or service or your solution.

[00:41:25] So years ago, I used to own an ADT security system dealership.

[00:41:30] Right.

[00:41:30] And when I first got in the game, they did.

[00:41:33] You know, they'll teach you their sales system and all of that.

[00:41:36] And I was interviewing people doing group interviews.

[00:41:39] And then the people that I liked, hey, I call them back and see if they were interested in the position, which was a commission only position.

[00:41:48] So every security system that they gave away for free, they got like three hundred and fifty dollars.

[00:41:54] OK, straight up.

[00:41:55] So it was a 1099 position and I was having problems finding qualified sales reps.

[00:42:01] And so I hired a brother as a sales manager that used to work for one of the top ADT dealers in the Maryland and Virginia area.

[00:42:10] He was like, brother, you're doing this all wrong, man.

[00:42:13] Let me show you how these these big wigs are holding their interviews and how they're getting top people without a lot of energy and resources wasted.

[00:42:24] I'm calling back the 20 people that came into the actual group interview and I'm not getting a good response.

[00:42:31] So this is what he said the successful alarm dealers were doing.

[00:42:36] They would do the group interviews after the group interview.

[00:42:40] They would say, if you're interested in moving forward with this position, I need you to call me tomorrow between one a one p.m.

[00:42:50] and two p.m.

[00:42:52] OK, I need you that that person that was in the interview to call me between one p.m.

[00:42:59] and two p.m.

[00:43:00] if you're interested.

[00:43:02] So what was I doing?

[00:43:04] Sifting and sorting.

[00:43:05] So as opposed to me calling each one of those 20 people trying to see what they they thought, the people that were truly interested called me between one and two o'clock that next day.

[00:43:17] So now I set up a system where I got the wheels rolling.

[00:43:23] I was doing interviews, group interviews like twice a week, like Monday morning and Thursday morning or Monday morning and Thursday afternoon.

[00:43:31] And the people that were interested in moving forward on this commission sales job, they would call me the next day and they showed me they were interested and they raised their hand.

[00:43:42] Once again, when they do that, the dynamics of the conversation change.

[00:43:47] I'm not calling John Brown saying, hey, John, you were at the interview, the group interview yesterday.

[00:43:52] What did you think?

[00:43:53] You know, we'd love to have you on board.

[00:43:55] I'm not wasting that conversation with John Brown because John Brown may not want the position.

[00:44:01] I'm having meaningful conversations with people that raised their hand.

[00:44:05] So Sally Brown called back at one 30 the next day and she said, hey, Mr. Jones, I'm interested in the in the opportunity.

[00:44:14] Now I'm talking and it's making sense.

[00:44:16] Sifting and sorting, not selling.

[00:44:19] Remember, selling is repelling.

[00:44:22] Before we get to the last segment of the show, let me give you guys my social media contact information and resource links.

[00:44:29] Now I'm going to keep it super simple.

[00:44:31] Everything I'm going to tell you is on the website, blackentrepreneurblueprint.com.

[00:44:36] So I mentioned at the top of the show, my new book is out, Unlocking the Power of Chat GPT, the ultimate prompting guide for beginners.

[00:44:44] Go to unlockingchatgpt.com.

[00:44:47] Also, I mentioned BEB Academy.

[00:44:49] You can go to the front page of the website, blackentrepreneurblueprint.com and see BEB Academy.

[00:44:56] Click the link for more information.

[00:44:57] My other two pound for pound programs are up there too.

[00:45:01] Brand Builder Academy Elite.

[00:45:03] If you try to build a successful, sustainable e-commerce business, click the link there at the top of the website.

[00:45:10] Also, pinpoint and monetize your genius.

[00:45:13] Your genius is the intersection between your passion and your talent.

[00:45:16] The problem is most people don't know how to monetize it.

[00:45:20] Pound for pound, my best program.

[00:45:22] Click the link at the top of the website, blackentrepreneurblueprint.com.

[00:45:26] Now, to connect with me, guys, anything long, hit me on my email, jjones at blackentrepreneurblueprint.com.

[00:45:33] J-A-Y-J-O-N-E-S at blackentrepreneurblueprint.com.

[00:45:38] Facebook, Black Entrepreneur Blueprint.

[00:45:40] Instagram, I got two IG accounts.

[00:45:43] The first one is J-Jones for real.

[00:45:46] J-A-Y-J-O-N-E-S, the number four, R-E-A-L.

[00:45:51] Second one is Black Entrepreneur Blueprint.

[00:45:54] Then Twitter, hit me on Twitter, jjones001.

[00:45:58] J-A-Y-J-O-N-E-S 001.

[00:46:01] Facebook, Black Entrepreneur Blueprint.

[00:46:03] YouTube, make sure you connect with me on YouTube, guys.

[00:46:06] I have additional content on YouTube that is not on the show.

[00:46:10] So go to YouTube, type in Black Entrepreneur Blueprint and hit that subscribe button.

[00:46:14] And also, guys, LinkedIn, you can find me there.

[00:46:18] Just type in jjonesblackentrepreneurblueprint and connect with me on LinkedIn.

[00:46:23] Everything I just said is on the website blackentrepreneurblueprint.com.

[00:46:28] For my contact information, hit the About tab.

[00:46:31] Under my bio, you'll see all the links to my social media.

[00:46:35] All right, let's get back to the last segment of the show, which is going to be super short.

[00:46:39] So today we talked about how to increase income by firing problem clients or customers.

[00:46:45] And I want you guys to know this is real stuff that you can implement immediately.

[00:46:50] I know it's kind of a dichotomy where you're getting rid of customers and you're getting rid of revenue.

[00:46:56] But not all revenue is good revenue.

[00:46:59] So I use the analogy of this.

[00:47:02] It's almost like having a funnel, a physical funnel, right?

[00:47:05] Now, you can put rocks in that funnel or water in the funnel.

[00:47:10] And when I say rocks, you're going to have all different sizes and shapes of rocks in that funnel.

[00:47:14] So you fill that funnel up with rocks.

[00:47:16] What happens to the funnel?

[00:47:18] It gets stopped up.

[00:47:19] It gets clogged up.

[00:47:21] So now you're not moving at maximum efficiency.

[00:47:24] You got to shake the funnel around.

[00:47:26] You got to put a stick in there to get some of the rocks out.

[00:47:29] Some of the rocks are so big, they're not even going to go through the funnel and it clogs up the funnel.

[00:47:33] Now, that's what bad or problem clients or customers are doing to your actual business.

[00:47:40] Now, the opposite of that is you can put water or liquid in the funnel, right?

[00:47:46] So if you put water in that funnel, what happens?

[00:47:49] The water flows through and it comes out the other side very quickly, very smoothly.

[00:47:55] You're not shaking it around, trying to loosen the rocks and all of that.

[00:47:58] So you got to understand, guys, the analogy of rocks in a funnel versus water in a funnel.

[00:48:05] You want to put water in your funnel, not rocks.

[00:48:09] And here's the biggest thing, guys.

[00:48:10] You want to optimize your client portfolio.

[00:48:13] So if you're in the service business or product business or whatever, specifically, I'm going to talk about service businesses right now.

[00:48:20] You want to optimize your client portfolio.

[00:48:24] So one of my best friends, who's my CPA, he got rid of a ton of different clients that he had.

[00:48:32] Number one, we talked about this a couple of weeks ago.

[00:48:36] You know, if you want a $200 tax return, then I was telling one of my buddies, I said, my guy isn't your guy.

[00:48:44] Right. He specializes with entrepreneurs and harder tax returns or multiple tax returns.

[00:48:51] So like I have three LLCs in addition to my personal taxes.

[00:48:56] So my tax returns cost a couple of thousand dollars.

[00:48:59] And I don't mind that because I know they're on point.

[00:49:02] Now, if you work in corporate America and you get a W-2, there's no reason to pay, you know, a thousand dollars for a tax return when you can do it yourself.

[00:49:11] And so what he found was he was having a lot of clients, number one, that weren't paying them, you know, in a timely fashion, even though they may be corporate clients or bigger clients.

[00:49:22] And also he had other clients that really didn't fit his avatar profile.

[00:49:27] So he actually got rid of over 35 percent of his clients and he's not making quite as much money.

[00:49:34] But he said business is flowing a lot, which is allowing him to be able to go out and get more clients.

[00:49:41] So here's what you can do, guys.

[00:49:43] If you have a an optimized client portfolio now, you want to reach out to those clients you have, customers you have and find out if they have any friends or associates that are like them.

[00:49:56] Because if you build your portfolio of clients with a bunch of rocks and you get referrals from them, you're going to keep getting rocks.

[00:50:04] Right. But if you build your client portfolio where it's optimized and your clients are like water and you reach out to those current clients, you're going to get more clients that are like water.

[00:50:14] And so you want to get the rocks out of your funnel and you want to pare down and focus on your avatar or avatars.

[00:50:22] There may be multiple. So in my business, in my mortgage business, there are multiple avatars, first time home buyers, investors, you know, people buying investment properties.

[00:50:33] Also debt consolidation, refi, cash out, all types of stuff like that.

[00:50:39] So I have different avatars and I have different messages when I do my marketing for those different avatars.

[00:50:45] So I'm not going to talk about investment properties to somebody that's a first time home buyer.

[00:50:52] Right. They don't even own their own home first.

[00:50:54] So your messaging has to be multiple faceted to connect with each of your avatars.

[00:51:01] So don't be like monolithic. OK, depending upon the type of business or product or service that you have.

[00:51:07] So with my business, I I can I can cater to different different avatars, different different verticals.

[00:51:14] OK, so be cognizant of that. But you want to optimize your client portfolio.

[00:51:19] So if I have any coaches or service people that are in here, even product based people, make sure that you optimize your client portfolio.

[00:51:29] Garbage in equals garbage out. Make sure you understand that.

[00:51:35] Now, before I close on out, guys, I say this each and every week, but we get more and more downloads because of you, the BEB family.

[00:51:43] I appreciate you guys so much.

[00:51:44] Please continue to spread the word about the podcast, the blog, the new updated website, blackentrepreneurblueprint.com.

[00:51:53] Go ahead and check it out, guys.

[00:51:54] We have resources on there that are going to help you elevate your entrepreneur IQ.

[00:51:59] And we want blackentrepreneurblueprint.com to be the website for black entrepreneurs.

[00:52:06] Remember, it's not about me. It's not about you. It's about us.

[00:52:09] It's about building an economic power base in the worldwide black community by building and supporting black owned businesses.

[00:52:16] Love you guys. See you same time next week.

[00:52:19] Peace.