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Dos and Don’ts When Approaching A Possible Joint Venture Partner

May 30, 2020 by Dan Lok

Did you know that you could take your business to the next level if you find a joint venture partner? A joint venture is a mutually-beneficial partnership agreement between two or more individuals. In a joint venture, two or more parties will start a business together, collaborate on a project, or do business together. This type of partnership typically involves shared ownership and shared profits, as the joint venture partners will pool their resources, share the expenses, and share the risks.

If approached the right way, a joint venture can be a very smart business decision. In fact, businesses who are in competition with each other often join forces and start a joint venture. Entrepreneurs don’t always need to have the mentality that they should crush their competition. Why? Because many of you could actually profit from your competition by forming an alliance and collaborating on a joint venture.

You can profit from your competition if you pool your resources and start a successful joint venture. Share on X

Competitors often join up with each other if they lack certain resources or skills that their competitor has. For example, imagine that one business has a strong distribution capacity, which a similar business lacks. The other similar business, however, has a much stronger social media following and more connections to influencers. If they work together, they could both profit more than they would working alone.

A joint venture doesn’t have to be with a competitor, however. In general, joint ventures are wise to consider, as you can acquire valuable shared resources without the risk of excessive capital being required. In this article, we’ll go over a few examples of joint venture partnerships before we discuss the “dos” and “don’ts” to remember when approaching a possible joint venture partner.

Examples of Joint Venture Partnerships

Were you aware of the fact that the popular streaming application “HULU” was the result of a joint venture? NBC Universal Television Group (Comcast) and Disney ABC Television Group (The Walt Disney Company) joined forces to create “HULU”. It turned out to be a major success.

Doritos chips collaborated in a joint venture with Universal Pictures and Amblin Entertainment when the film Jurassic World: Fallen Kingdom was released. In a brilliant marketing collaboration, Doritos created the world’s largest Dorito (“dinosaur-sized”) and fans could bid in an auction to win it, or enter to win online. For equal media exposure for both partners, fans had to tweet #JurassicDoritos to be eligible to enter for a chance to win. The winning bid’s proceeds went to the American Red Cross to help those affected by volcanic disasters in Hawaii, where many scenes of Jurassic World were filmed. In this joint venture, specially marked bags of Doritos chips had the Jurassic World: Fallen Kingdom packaging which came with special codes to win prizes.

Those are just a couple of examples of big joint ventures that were very successful.

As far as small businesses go, there are many types of joint ventures. Two struggling small businesses could pool their resources in a joint venture and both make a nice profit from the venture. It’s crucial, however, to understand the “dos” and “don’ts” first.

The “Don’ts” When Approaching a Joint Venture Partner

If you’re thinking of approaching a possible joint venture partner with an idea, what should you avoid doing? There are certain things you should never do. Below is a list of “don’ts” to remember when you’re approaching a joint venture partner.

Don’t Approach Someone Prior To Establishing Your Relationship With Them

Never approach a possible joint venture partner prior to establishing a relationship with them. It’s not wise to suggest that someone do something for you (or with you) if you haven’t yet built a relationship with that person. Even if a joint venture could potentially make them a lot of money, you should still form a relationship with them before you approach them with your idea.

If this person doesn’t know you, why should they trust you, or do a deal with you? Why should they even read your email?

This is why you should never approach a joint venture partner with your idea on your first meeting, or upon first contact with them. You haven’t done anything yet to earn their trust or respect. You don’t yet deserve their attention or consideration.

For example, imagine that a public speaker who is a successful businessman gets approached by a random member of the audience after their presentation. Keep in mind, the speaker doesn’t know this audience member at all. The stranger asks them, “Would you be interested in a joint venture?”

The stranger may as well have said, “I know you don’t know me at all, but how about you just trust me and do a deal with me?”

That sounds ridiculous, right? Well it is ridiculous, as well as inappropriate.

An appropriate question the stranger could have instead asked, is “Could I possibly take you out for lunch?” The better approach is to start with lunch, and maybe even have a few lunches with them before bringing up your idea of a joint venture. Build the relationship first, and earn their trust. Be patient, and propose the joint venture when the time is right.

Don’t Overshare Details of How the Partnership Benefits You

When you’re discussing a possible joint venture with someone, don’t overshare details regarding how the partnership will benefit you.

It’s better to focus the conversation on the mutual benefits of the joint venture.

If you speak too much about the personal benefits for you, it’s possible your potential joint venture partner will feel used, or be turned off from doing the deal.

Don’t Approach Them With a Distrusting Attitude

Never approach a possible joint venture partner with a negative or distrusting attitude. This type of attitude is an instant repellent, as nobody wants to do business or collaborate with someone negative. And, people are more likely to trust someone that gives them their trust. So if you don’t seem to be very trusting, they probably won’t trust you, either.

Don’t Expect an Immediate Answer

Let’s say you’ve met with your potential joint venture partner a few times, and during your last meeting, you finally approached them with your partnership idea. It’s important that you don’t expect an immediate answer.

If you follow up with them a mere 24 hours later, asking them if they’ve made a decision, this will only turn them off and make them not want to partner with you.

It’s best to give them space, and allow them some time to think it over. It’s inappropriate to rush them, as it’s in bad form to expect or demand an immediate answer.

After approaching a possible joint venture partner with a proposal, you should not follow up for at least one week. Even if you don’t hear from them after a couple of days, don’t get tempted to reach out. If you don’t hear from them for one week, at that point it’s reasonable to reach out to them.

This requires patience, but that patience is the respectful and professional way to go about this.

The “Dos” When Approaching a Joint Venture Partner

Now that you know what not to do when approaching a possible partner, what are some things you should do? When you’re considering a joint venture, there are some things you should remember to do, to ensure your venture is successful. Below is a list of “dos” to keep in mind when you’re approaching a possible joint venture partner.

Do Your Research

It’s crucial to do your research before approaching someone about a joint venture, for many reasons. For one thing, your research will help you figure out where their business is falling short, and how a partnership with you could benefit them. Since a joint venture should be mutually beneficial, you’ll have to figure out which assets you bring to the table that they don’t currently have.

Research also helps ensure you’re prepared for your meeting with them. The goal is to impress them, and earn their trust. Being familiar with them and their company helps you accomplish this goal.

Get Their Attention Before You Approach Them

Have a possible joint venture partner in mind? Target acquired? A clever approach is to get their attention before you approach them. You can do this in many different ways. For example, you could become their client, first, or attend a few of their workshops. If you’ve been buying tickets to attend their seminars or workshops, they’ll respect this. This strategy is also a great way to build the relationship, which as you recall, you must do before you approach them with a joint venture proposal.

You can also get their attention by showing them that you’re a fan, by buying their product, taking a photo with it, and posting a positive review online. Imagine the person you want to partner with has an upcoming book signing for their new book. You can buy their book, get a photo with their product, post the photo on social media, and tag them. Now, you’ll have their attention, and you won’t be a complete stranger in their eyes.

Approach Someone With Complementary Resources

A strategic approach includes approaching someone with complementary resources to yours. The parties involved in a joint venture ideally should have complementary resources.

Resources can range from services, skills, and products to business assets, social media followers and customer lists. All of these resources can be leveraged to reduce costs.

As long as you trust each other and you have an appropriate contract drawn up, you’ll feel comfortable sharing these resources with each other. Do you have access to certain valuable resources that your potential partner doesn’t have, and vice versa? If so, pooling your resources cuts costs and increases the likelihood that your venture will be successful.

Complementary resources are resources that enhance each other, and are stronger together than they are apart.

Choose Someone You Connect Well With

It’s important to choose a potential joint venture partner carefully. Choose someone you vibe well with, who has similar core values. It’s best if your joint venture partner is someone you get along with, so it’s important that the two of you have compatible personalities.

You’ll want to choose someone you vibe well with and connect with. When you go out for lunch, do you smile, laugh, and get along well? Do you listen to each other? Some people aren’t compatible with each other, and that’s another reason it’s so important to build a relationship with them prior to pitching them. You need to see if you work well together.

Build Rapport and Earn Their Trust

The most ideal scenario is that your possible joint venture partner trusts you before you approach them with your proposal. Their business and their reputation matters to them, so they can’t risk their business or reputation on someone they don’t know and don’t trust.

Earning their trust is especially important if sharing valuable resources is required for the joint venture. For example, if sharing customer lists is required, trust is pertinent, since a customer list is the most valuable asset a business has.

Interact With Them on Social Media

While you’re building a relationship with your potential joint venture partner, you should try to regularly engage with them on social media. The key is to interact with them on social media often enough to maintain your relationship, but not so frequently that you look like a stalker.

This means that perhaps every couple of days, you’ll like and comment on one of their social media posts. You’ll regularly comment something supportive and positive, while you build your relationship with them. This will help your possible joint venture partner feel more familiar with you, and more comfortable with you.

Leverage Your Most Valuable Assets

Earlier, we mentioned how a customer list is the most valuable asset a business has, but there are many other valuable assets you can leverage to entice a possible joint venture partner.

If you’ve done your research, you’ll know which assets they don’t have, and which resources are lacking. If you have assets or resources that they can benefit from, make sure to leverage those assets to make your proposal more enticing.

Personalize Your Pitch

When it’s time to propose a joint venture, you should always personalize your pitch. Perhaps you’re pitching your joint venture proposal via email, after a few lunches and dinners and after establishing a relationship with them. Or, perhaps you’re pitching in person, once you feel you’ve earned their trust and have a good rapport going.

If you customize your pitch to suit the person you're pitching, you'll have a better chance of closing them. Share on X

Whether you’re pitching via email or in person, always personalize your approach. In emails, keep it personal. Do not use a template. Template emails that are clearly copy-and-pasted with a name switched out, will not work, as it will be obvious it’s a template email. It’s better to write a personalized email, as it demonstrates effort, thought, and care. In person, your pitch will be better if you incorporate personal details about them and their business into your pitch.

If you customize your pitch to the person you’re pitching to, you have a better chance of closing the deal.

Ask For References or Testimonials

Remember that you’re not the only one trying to impress your possible joint venture partner. They should be able to impress you, as well, and make you feel comfortable about the idea of working together. In other words, they need to earn your trust as well. It goes both ways.

So, don’t neglect to ask them for references or testimonials before you sign any sort of agreement with them.

Set Expectations

When a joint venture is being discussed, before contracts are signed, you should set expectations with each other. This includes the investment required (the expense) and the potential upside (the return), as well as the potential downside (the risk).

It’s possible that compromises will need to be made, before both parties feel comfortable signing a deal. It’s best to get this part of the process over with before the venture begins, to avoid running into misunderstandings or problems later on.

Who Should You Do a Joint Venture With?

At this point, you’ve learned what you should and shouldn’t do when approaching a possible joint venture partner. You’ve probably also gained some insight as to what type of person you should partner with.

To summarize, you should partner with someone who has complementary resources and has assets they bring to the table that you’re lacking. You should also make sure to partner with someone you’re compatible with, and get along well with. Always partner with someone you trust, and remember to do your research on this person and check their references.

You now know what type of partner is ideal, but what if you lack the connections to meet a potential joint venture partner? What if you want to find someone to collaborate with, but you don’t know how to meet them?

Need Help Finding The Right Joint Venture Partner?

Do you need help meeting a potential joint venture partner? And do you need trusted and strategic advisers to help you figure out the best way to approach a joint venture partnership? Perhaps you’re ready to take your business to the next level, and you know a joint venture will help you succeed, but you lack the connections to find the right partner.

Dan Lok has now formed the world’s most exclusive advisory board for ambitious and distinguished entrepreneurs who are committed to reaching next-level success.

Dragon 100™ is an exclusive group of 100 A-players who are serious about their success. If you’re accepted as a member of Dragon 100™, you will get a rare opportunity to network with other elite entrepreneurs and learn from Dan Lok himself. This is a great way to network with other A-players who could potentially be your next joint venture partner.

If you’re ready to take your business to the next level and join an elite group of A-players, click here to apply to be a Dragon 100™ member.

Want To Scale Your Business For International Expansion?

May 23, 2020 by Dan Lok

Are you looking to join those at the top of the business pyramid? Is it time to finally ascend your company to the next level? Are you ready for international expansion? The biggest players in business are those that cater to the global market. If you want to play at their level, you need to scale your business for international expansion.

If you are scaling your business, you have to be aware of what else you need to consider. The person you are now is the person who managed to bring the company to where it is today. But if you want to expand your business to the next level and beyond, you can’t stick to being the same person you are now. You need to think like an international business owner. It’s time to evolve. You need to upgrade your knowledge, your skills and your mindset.

Scaling your business brings on many unknowns. Knowing what things you still have to learn in order to get where you want to go, is critical to achieving success. These are factors such as different target audiences, needs, desires, and the jargon that they use.

On top of understanding your target audience’s desires, you also need a strong team to help you scale. This means knowing how to find people that are just as passionate and driven as you are. The more ‘A players’ you have in your company, the faster you can scale your business. Finding team members that you can trust and delegate tasks to on your behalf will give you a competitive advantage over everyone else.

If you’re looking to expand into different markets, there’s a lot to consider. Here are our best tips on how to scale your business for international expansion:

The International Market is Composed of Many Diverse Regions

One of the biggest mistakes CEO’s make is generalizing the international market. This means thinking that your audience’s needs and interests in one country will be the same as another. Before you decide to scale your business for international expansion, you must first focus on the local market.

The international market is segregated based on region. These regions consist of geographic areas such as Canada, the US, India, China, Japan, Russia, and Europe. Each of these regions has their own set of cultural differences that make them unique. As a result, they also have their own customs, needs and dislikes that differ from other regions.

To efficiently scale your company for international expansion, you need to look at each of these regions as their own separate marketplace. This means doing in-depth research to understand everything there is to know about a certain region. Once you get a better understanding of the marketplace that resides in that region, you can begin to scale your company for that specific region.

This means tailoring your product towards that specific region’s needs. Just because your product performed well in one region, does not mean the same for another. This is because the needs of the European marketplace for example, differ heavily from the needs of the Chinese market. There are differences in these two countries based on a variety of factors – such as language, culture, geographic location and ethnicity.

If you want to take your company to the next level, you need to understand and be aware of these differences. Knowing these differences allows you to tailor your product to that specific region for maximum results.

You Don’t Have Just One Target Audience, You Have Multiple Audiences

In order to customize your product to a particular region’s taste and interests, you need to familiarize yourself with their culture. Know their customs, traditions, and the ‘lingo’ that they use. This is where doing your research beforehand becomes critical.

For example, let’s say your company sells Mac and Cheese, and is based in the US. The ad that you’re running has a Caucasian family sitting together at the dining table. Everyone is laughing, talking about their day, and enjoying their dinner of Mac and Cheese.

Based on statistics, this ad has performed well and the demand for your Mac and Cheese is growing year after year. Now let’s say you want to expand your company and begin targeting the marketplace in China. Do you think you will see much success if you run the same type of ads in this new region? Most likely the answer is no.

This is because your US based ads target a different niche audience. In China, the majority of people that live there are of Asian ethnicity, not Caucasian. Immediately, your ad will be a turn off to the Chinese marketplace, because they cannot relate to it.

As well, most Chinese people prefer to eat rice for dinner, instead of pasta like macaroni. As a result, there is less demand for your product and you will be competing with well established rice companies for market share.

Lastly, the primary language of China is Mandarin. If your ad is running in English, only a small percentage of people will be able to understand what is going on.

This example illustrates how a different region has many factors to account for. If you don’t focus on localizing your product to that region, you will not gather much interest due to cultural differences.

Focus on Localizing Before You Go International

The same holds true for all international regions. Each country has its own differences and particular niche audience. If you want to succeed internationally, you need to account for all these factors.

The way you market your product will determine its success. Details such as the packaging, the words you use, the images, the colors and what you stand for, all impact how consumers will view your product and brand. Especially when it comes to entering a new marketplace.

This means if you’re looking to scale your company for international expansion, you need to localize your offering. You need to customize your product to that region, and account for all the little factors that will affect how well it succeeds. Being aware of these differences when entering a new region will allow you to scale your company quicker and overcome resistance.

Besides having different needs, different regions also have different business practices. These are things such as different business laws, paperwork requirements, and processes you have to go through. As a result, you may have to make numerous changes to how you market your product or brand before it’s considered acceptable.

Achieving legal business compliance in a region like Germany comes with many strict requirements and paperwork to be handled. This process may take weeks or even months before you’re given the green light. If you’re looking to expand your company for international expansion, make sure you have additional resources prepared for when unexpected situations arise.

You don’t want to hype your audience up for a big product launch, only to realize it’ll be delayed by two weeks. Do your research beforehand and be aware of how all these minor things can impact your business.

Behind Every Great Company is an Even Greater Team

Creating a business that is local and successful is a challenge. Finding the right team members to help you scale that business to the international market is exponentially more difficult. If you’re looking to scale your business for international expansion, you’ll need a strong team to support your vision.

The difference between a good company and a great company is the team standing behind it. In order to scale your company internationally, you need reliable team members who can ensure things run smoothly. As you’ll be entering new and uncharted territory, success will depend on whether or not your team members possess certain traits.

These are traits such as ownership, accountability, being a team player and being results driven. Unlike 9-5 employees who are only interested in a paycheck, you want to look for people who can become a valuable asset to your company. Who have an entrepreneurial drive to achieve great things and set new standards.

You want people who are always striving to improve and become a better version of themselves every single day. Because those traits will translate over to the kind of work they will do to help grow the company. Setup your business structure so that your employees are rewarded for their efforts. Make them aware that the more results they can produce for the company, the more they’ll be financially rewarded.

If you’re looking to scale your company for international expansion, you’ll want the best ‘A players’ you can find. The more of these types of people you have in your company, the more you’ll grow.

How To Scale Your Company For International Expansion

There are many ways you can scale your company for international expansion. However you choose to do it, you need to be sure your team is on the same page.

This is why finding good team members is important. If you’re looking to take on the world, you need people who you can trust to delegate tasks to. As the CEO, the last thing you want to do is waste your time completing trivial tasks. Your role is to be the visionary that will lead the company to success. That means you need to be aware of your time and how you spend it.

When you have a team of people you can trust, you can spend your time doing the important things in your company. These are things such as deciding on a new product launch, building connections with other affluent business people, or planning out next month’s marketing strategy. Any other task that can be delegated should be left to your team members to handle.

For example, when Google wanted to expand their international presence, they sent small teams from their headquarters to new regions. These teams were then responsible for growing a local team in that region. And as time went on, these smaller teams grew larger and larger as the company’s presence in that region grew as well.

By delegating tasks to your team, you can efficiently scale your company for international expansion. This means looking at the resources you have, and planning out the best way to utilize them. The better your team members are, the more resources you’ll have available.

A resourceful person will always make opportunity fit his or her needs.” – Napoleon Hill

Utilize Influencer Marketing To Reach A Greater Audience

The more people you know, the more likely you are to become successful. This is why many companies look to influencer marketing when breaking into a new region.

Influencer’s offer many benefits to companies and brands. Firstly, the influencer already has a large audience of followers. This is valuable to a company because it means they don’t have to spend time building up an audience base. By contacting the influencer directly and getting them to promote their product, they can reach a larger group of people.

Secondly, influencer’s have celebrity status. Because many people look up to and may even aspire to become just like them, they hang onto their every word. As a result, the influencer has a lot of power when it comes to influencing an audience to take action. In fact, research shows that 49% of consumers base their purchases based on influencer recommendations.

This is why big companies like Nike and Adidas utilize celebrities like Michael Jordan and Tiger Woods to endorse their products. They understand the influence these people have over the general masses. And they know that by tapping into the connections these celebrities have, they can channel that influence toward their own product.

Lastly, the influencer has familiarity with both the region and the people there. This allows them to overcome cultural differences, language barriers, and increase the chances your product will stand out.

Leveraging an influencer’s existing audience base is a good way to promote your brand to a new market. Utilizing an influencer and getting them to endorse your brand or product is another great method to scaling your company for international expansion.

Leverage Business Connections and Your Personal Network

If you’re looking to scale your business, you’ve most likely been in business for quite some time. During that time, you should have met a few trustworthy business contacts. If you’re looking to break into a new international region, get in touch with your old business contacts.

Look at your network of people you know. Make a list of the people who have connections or do business in regions that you want to break into. Then, set up a meeting with them and let them know your plans. In many cases, your business contacts operate in a certain geographic location. As a result, they will know more about that region than you do.

Leverage their experience and knowledge to help you enter the market for that region. Even if they don’t know much about a certain country or city, chances are they know someone who does. This allows you to quickly familiarize yourself with the business practices and cultural differences of a region. They can act as your local business tour guide, providing you with valuable information about what opportunities to pursue and which ones to avoid. In exchange, you can give them some form of compensation for all their help.

This is similar to using influencer marketing to enter a foreign market. But instead of leveraging their audience base and followers, you are leveraging their knowledge and experience. This is also a great way to open up the door for other business opportunities down the road. One successful business deal often leads to another, and if you both have something to gain, it’s a win-win situation.

Don’t be afraid to call up old business contacts. As long as there’s something in it for them, they’re more than glad to provide you with their expertise.

Learn How to Expand Your Company into an International Empire

Scaling your company for international expansion is not that simple. Whenever you are entering a new marketplace, you need to be aware of your target audience’s needs. This means accounting for things such as the culture, language, traditions, customs, processes, ethnicity and restrictions.

Without a good understanding of the differences between each region, you will not be able to attract and influence your audience. A marketing ad aimed at targeting the Western demographic in North America, will not have the same effect if presented in the East. This is due to things such as cultural sensitivity and a different style of doing things. What may seem intriguing and even clever in one region, may be insensitive or even controversial in another.

Having a good understanding of your target audience is crucial for international expansion. Regardless if your business is online or in person, you’ll want to do your research beforehand to increase your odds of success. One method to do this, is to find someone who knows that region well and leverage their experience and knowledge. They can offer you a perspective that others might miss, because they live there or have done business in the region for many years.

If you’re an online coach struggling to scale your business, the High Ticket Influencer™️ program may be for you. Inside, you’ll get an in-depth look at the systems and strategies you can use to scale your business to 6-7+ figures fast. You’ll receive a marketplace-proven roadmap on how to go from $0 to $1M/month in less than 8 months by doing what no one else does. If you want to learn more, click here now.

How To Expand Your Business Into New Markets

May 19, 2020 by Dan Lok Leave a Comment

Do you want to know how to expand your business into new markets? The current global economic crisis has been forcing many business owners to think creatively.

If you’re losing money because your current market is on lockdown, then you probably want to find ways to expand your business.

For many small, local businesses, it’s especially important to get into online markets and shift to online operations. If your business has been relying on physical stores, you need to learn how to go from brick and mortar to click-and-order. In other words, you need to educate yourself on the best practices for running an online business.

As a business owner, you are constantly challenged to expand, branch out, and test new ideas. But now more than ever, you need ideas that work and get you cash flow fast.

Expanding your business into new markets is probably one of the best ways to stay afloat in times of crisis. So, below are our best tips for how to expand your business:

How To Expand Your Business Step-by-Step

If the economy was good, you could simply go out and test your ideas. But that’s not possible right now.

Now is the time to be a bit more careful with your business decisions and plan before you act. For those who know how to seize it, there is an opportunity in a crisis.

Before you act, map out your plan strategically and diligently.

Step 1: What Are Your Possibilities?

First, you want to look at your possibilities. Do you want to break into a new market with a product or service you already have? Or do you have a new product and want to get it known in other markets?

Do you want to stay in the same market sector, but address a new customer sector, for example going from business to customer (B2C) to business to business (B2B)?

Expanding your business into new markets can also mean changing the way you deliver your product or service, for example, an online download instead of an in-person cashier.

Step 2: Market Research

Do market research. This is important, so you don’t want to skip this step.

Even if you can make educated guesses about your market, still take the time to look into this. Research what your market cares about. What problems do they have? How can you help solve those problems?

When you ask how to expand your business into new markets, you are actually asking how can you expand into new markets successfully.

You could easily go out there, start an online campaign to market to a new audience, and see if somebody buys. But that’s a very risky approach. Why? Because you have no idea if your strategy will resonate with your new market.

That’s why research is so important. Imagine if your research uncovers that your desired new market responds well to do it yourself services. But you wanted to offer a done for you service.

If you do research in advance you can adjust accordingly. If you don’t do any research, you’ll still come to the same conclusion but lose money and time on the way.

Step 3: Make a Decision

Now you know your options and you know your market. So, it’s time to make a decision. Do you want to enter this market or would you rather look into a different one?

It can happen that you made assumptions about a good market to expand into but after your research, you realize it’s not what you envisioned.

If you decide that it’s not your desired market, go back to step one. If you decide to proceed, go to step 4.

Step 4: Strategize to Expand Your Business Into Another Market

Now it’s time to plan out your strategy. How will you introduce your product? How will people find you? How do you position yourself?

Do you have to adjust to a certain culture? Do you have to change or tweak your messaging?

The clearer your plan is the better. Don’t leave anything to chance, but also be flexible enough to pivot if needed.

Enter a New Market with Existing Products

Now that you are clear on your step-by-step plan, let’s take a deeper look at your possibilities when it comes to how to expand your business.

The first possibility you have is taking a product or service you already have, and marketing it in a new way. This could be as simple as changing from a local business to an online business model.

Let’s assume you are selling shoes. You were selling shoes at your local brick and mortar store. But because of the lockdown, you want to open an online shop.

The product (the shoes) doesn’t change. You are still selling the same shoes. All you change is the way you market the product, and the way you deliver it.

Still, there are some pointers to keep in mind. If we stick with our shoe sales example, you’ll realize that buying shoes online isn’t the same as buying them in a local store. Your clients can’t try them on. People might order your shoes, but send them back because they don’t fit.

This is only one example, but you can generally expect new challenges with any new market you break into. If it were easy to expand into a new market then you’d already have done it.

Tweak Your Product

In some cases, you can still use a product or service you already have, but you need to tweak it.

Picture yourself selling marketing coaching sessions for entrepreneurs. Usually, you offer face-to-face meetings for your coaching, in person.

Now, if you want to get into the online market, you’ll likely shift to video coaching sessions. But, you could also record your training sessions and make it a complete online video training.

Pre-recording coaching sessions is great, because it requires no extra time from you once the product is in place. It’s a perfect way to scale your business without burning yourself out with too much work. Essentially, you can sell your recordings an infinite number of times.

Making some changes to an existing product or service is also easier than creating a completely new one. So, this strategy is one of the fastest ways when it comes to how to expand your business.

Expand With a Completely New Product

Some markets might be lucrative to break into, but they are completely different from what you’ve done so far. In such a case, you might have to create a completely new product.

A perfect example of this is when you go from B2B to B2C or vice-versa. Both markets have different needs, different pain points and different ways to do business.

What could that look like? For example, maybe you run a beverage company. In the B2C sector, you sell drinks to consumers. In the B2B sector, it could be about selling drink vending machines to corporations or becoming a vendor for supermarkets.

Do you see how selling drinks to individuals or selling vending machines to a business are very different business models? It’s a completely new product with different messaging and a different price point.

But even if you stay in B2B or B2C, you can still break into a new market with a new product. If you sell shoes, maybe you want to go to handbags.

If you sell coaching sessions, maybe you want to write a book and address a whole new market that way.

Expand Your Social Media Network

Do you know why Dan Lok is active on every major social media platform and market in every possible way? Because every sales channel attracts slightly different people.

Most businesses stick to one or two social media platforms. Maybe they use Facebook and Instagram often, but never post on YouTube. However, if you limit your social media channels too much, there will be certain market sectors you’ll never address.

And that’s exactly why expanding your social media efforts is a great way how to expand your business.

Expand Your Delivery Options

Your forms of delivery and delivery options might have to change, too. Uber Eats or similar delivery services are a perfect example. Until recently, part of the market was completely opposed to ordering food. They would cook at home or go to a restaurant.

Now with the lockdowns, more people are giving food delivery a try, and finding that it’s not so bad after all. Many restaurants switched to delivery so they would survive the crisis.

So, expanding your delivery options opens up lots of new possibilities.

A New Consumer Market

Wondering how to expand your business into new markets? Another way to look at it is your consumer market.

Maybe you are marketing to a certain age group, gender, or location? Expand your market by going wider.

Your product or service is solving a certain problem for a certain group of people. So, you can find a similar audience with similar problems and expand that way.

Another possibility is to go deeper into your existing market. Have a look at your existing clients. Do they have a need for a new product from you?

Let’s assume you are selling a three month business coaching program. Maybe your clients are doing great after your coaching, and now they want to tackle bigger problems with your help. You could offer them a six month or a year-long program.

If you sell shoes, your clients might be interested in getting shoelaces, socks, or other accessories from you, too. Maybe people are doing more walking, now, and more people want to buy walking shoes. You might have to adjust your inventory accordingly.

Don’t think in the category of products, think in terms of needs and problems your clients might have, and you’ll see potential to expand.

Relationships and The Human Element

Now, how to expand your business into new markets is also a question of location. For example, if your market is in America, you could expand to Europe or Asia.

This might not be as easy because you have to pay a lot of attention to cultural differences. What works great in one part of the world might be frowned upon in another corner of the planet.

However, you also don’t want to go into analysis paralysis. If you’ve done your research, sometimes the best thing you can do is just start. Try, and see if your model works. You can always make adjustments later.

The customer is a marketing genius. If something doesn’t work, they’ll let you know by not buying. That’s why marketing heavily relies on testing. You won’t know what really works until you tried it.

The customer is always the marketing genius. If it doesn't work, they don't buy. Share on X

If you want to expand your market across cultures, it’s especially important to form relationships. Talk to your customers. What problems are they facing? What do they wish they had? In other words, what demand is already there and can be solved by you?

The human element is important in any market. People buy people. Building a relationship with your audience will always give you a competitive advantage.

Acquire Another Business

Business acquisition is a very advanced way of how to expand your business. To make this work, you need knowledge and capital. But if you make it work, it’s one of the fastest ways to expand into a new market.

Acquiring a business or merging with one can virtually double your business size overnight. It holds immense possibilities.

But, you have to do intense research, negotiate, and really think it through. It’s not a decision you make lightheartedly. If you run a small business, other options might be better for you.

How To Analyse A Market

After evaluating your options you might wonder: how do I actually research my target market? There are many ways to conduct market research, so here are some pointers.

Customers

Have a look at your customers. Find out their needs, pain points, and struggles. How does your offer help them?

Most businesses would focus on the client’s demographics like age, gender, and location. It’s important but do you know what else to look at? Almost more important than demographics are your client’s psychographics.

What’s that? Psychographics are wishes, needs, and preferences your customers might have. What are they interested in? Whom do they already buy from? What keeps them awake at night?

Looking at psychographics allows you to really understand your customers.

Competitors

Looking at your competitors is such a great way to better understand your market. Why? Because success leaves clues.

What is already working for your competitors? What can you emulate? There is no shame in doing something similar if there’s already a demand for it.

However, you also want to look at the reviews your competitors receive. What’s missing? What do people wish for or what do they criticize? Maybe there is something you can do better than your competition. That’s your competitive advantage.

Usually, it’s easier to get into a market where there is already some competition. Breaking into a completely new market is harder.

Market Size And Possible Barriers

You also want to look at your target market from a high-level view. This includes questions like:

How big is the market? How specialized?
Is it a growing market or is it contracting?
How competitive is it?

The answers to these questions will have great effects on your strategy. If a market is very competitive then you probably have to be more specialized. If the market is very big, you might want to find a niche.

It’s also a good idea to look at possible barriers to entry beforehand. What could stop you or slow you down? Typical barriers to entry are high costs. Some barriers are natural, others are imposed by the government.

For example, the government might collect a special tax for beverages that contain alcohol. It’s impossible to know this beforehand. It’s a barrier imposed by the government.

Natural barriers can look completely different. Maybe your business requires a huge warehouse. You can’t build it anywhere you want as there are natural obstacles like rivers or forests.

Environmental Factors

Finally, it’s important to note that no market exists in a vacuum. The market’s environment has a great influence.

Environmental factors include government regulations, technical developments, and cultural factors. Analyze them early on so you can expand your business successfully.

Find out which environmental factors could be dangerous for your business and which you can leverage for your success.

Even a change in a different market sector could affect your target market. Keeping an eye on these aspects as not only important at the beginning but pretty much all the time.

Even if you’ve been in a market for 30 years, you want to keep adapting to technological changes for example. If you can’t keep up your business runs at the risk of becoming irrelevant.

Ready For Next-Level Business Advice?

How to expand your business into new markets is a question of knowledge and skill. What if you could learn a lot more about business and marketing from Dan Lok himself?

And what if we told you that right now, you can get his 14 best training packages and save 57%? If your business is struggling right now because of the crisis, learning from someone who has done it all before is invaluable.

Dan Lok has been in business for over 20 years, and this isn’t the first recession he’s seeing. The Ultimate Training Collection includes everything he used to build a global empire. Discover The Ultimate Training Collection here.

10 Most Profitable Long-Term Business Contracts

May 18, 2020 by Dan Lok

If you’re an entrepreneur involved in a partnership, corporation, sole proprietorship or LLC, then chances are you’ll encounter multiple business contracts on your journey towards financial success. It could be a contract to bring in short term contractors, or a business deal which allows your company to grow. Regardless of the need, it is essential for you to understand the different types of business contracts in your industry. However, before we unveil the most profitable contracts to sign, it’s important to understand the basis behind a business contract.

If you’re new to the world of business contracts, you’re probably wondering what a legitimate business contract would look like. A business contract can be defined as a legal agreement between you and another party in the form of written or verbal communication. They are commonly seen in situations where services are required in trade of monetary compensation or an offered good.

Business contracts are agreements where individuals are assigned a duty and paid based on the contract’s terms. For example, a business contract might state that a marketing agency will provide services to a company. The payment structure is negotiated and added to the contract. Whether it’s a retainer agreement or another form of payment, it’ll always be detailed in the contract.

A business owner might sign a short-term contract, which typically last for less than six months. Or, they’ll sign a long-term contract which typically last for six months and longer.

Short-term contracts are best designed for companies who are limited by budget and do not require ongoing services after the specific project is completed.

Long-term contracts, on the other hand, are best for companies who have long-term goals requiring ongoing services to ensure their success is maintained. If a company knows they require an ongoing service, a long-term contract will be created. Long-term contracts have been proven for years to be more beneficial as they provide stability and minimal room for errors.

This article will only focus on long-term contracts, but feel free to explore short-term contracts if they appeal to your business needs.

Long-Term Business Contracts: The Dos and Don’ts

The entire premise of a business contract lies in the partner or company you desire to work with. Think about it: what happens if you get trapped in a six month contract with bad terms or a bad partner? Before jumping into a contract, it’s important to start the conversation by getting to know the person you’re working with. So to help you choose the right long-term contract, we’ve created some dos and don’ts to help ensure your company is in safe keeping.

The don’ts of contract signing

Don’t ignore red flags when negotiating a contract with someone.

One of the biggest red flags in a client is their attempt to cut prices or negotiate a discounted rate during your first interaction. This is a strong indication that your client is not capable of producing results or is not willing to go the extra mile for your company. Think about it: If a company tries to negotiate a lower price, doesn’t that mean their product or service isn’t as valuable as they claim it is?

The second biggest red flag is the client’s skepticism before entering into an agreement or a contract. Your client should have full faith in your company and should not be hesitant to sign a contract. Think about what might happen if your relationship starts off on a bad note. Odds are you’re in for a roller coaster of a journey.

The dos of contract signing

There are many factors to help you determine if a client is ideal for business.

The first tip is to find a client who’s is already successful in their respected industry. It’s always wise to sign with someone with proven results and the track record to get the job done. Your company is in search of results and strategy, so don’t hesitate to ask if they’re credible at what they do.

Another tip is to have a client who respects and trusts who you are. Signing a long-term business contract is similar to engaging in a long-term relationship. Think about it like dating someone, would you ever ask a girl or guy out if the initial meeting phase was rocky? Probably not, and the same analogy applies to signing a contract with a client.

It’s always wiser to sign a contract with someone who has proven results and a great track record. Share on X

Now, let’s review the most profitable business contracts for your company. Below are the top 10 most profitable long-term business contracts:

1. Business Contracts for Websites

Have you ever signed up for a website and were forced to comply with a company’s ‘terms and conditions’ agreement? Do you wonder why companies have one? Terms and conditions for websites are designed to protect the company or website owner against any allegations from their visitors. It is a set of regulations where users are required to comply in order to use a service or product. You might find Terms of Service often replaced by Terms of Use, Terms of Conditions, or disclaimers on various websites. But keep in mind the context of each is identical.

As a long-term strategy for your company, having a Terms of Service agreement on your website will prevent you from getting into legal liabilities and obligations. The agreement will present limitations such as copyright protection warnings and jurisdiction information to your clients or viewers. This means that your company will stay protected while demonstrating to your customers their rights of using your products.

So you might be thinking, who on earth reads the ‘Terms and Conditions’ of a contract? We get it, not a lot of people do. But if you ever encounter a situation where someone breaks your terms and agreements, you’ll be able to save a lump sum of money if someone steals your product. This is why it can be one of the more profitable long-term business contracts.

2. Business Contracts for Privacy

A common way of protecting your company’s information is by having contractors, employees or vendors sign a non-disclosure agreement to ensure information remains confidential. A non-disclosure agreement (also known as an NDA) can be defined as a legally binding contract that establishes a relationship regarding a confidential topic. Upon signing an NDA, the parties must agree that sensitive or personal information obtained will not be made available public or used as a means of progression.

The amount of information listed on an NDA is strictly up to the discretion of the business owner. You can include sensitive information about your company, confidentiality agreements based on new products or concepts, or lines stating which information is allowed to be spoken of. There are other cases where you can include plans and unreleased news on your NDA. Morally, just ensure that whatever you desire to protect is signed by every affiliate who seeks resignation or current employment.

We’ve classified a non-disclosure agreement as one of the most profitable business contracts as they’ll always be beneficial in the long run for your company. Protecting information such as new releases is important for your company, and factors such as leaked information might soil your entire plan if competitors gain access.

3. Business Contracts for Partners

Most companies today rely on business partners to help fund the business and keep it growing. If you plan on partnering with someone in the future then this section is perfect for you. Whenever getting into a partnership arrangement, it’s important for both parties to sign a partnership agreement contract. A partnership agreement is a business contract that lays out the terms and conditions as it pertains to the agreement between two or more partners.

This agreement can contain attributes such as ownership percentages, length of partnership and means of termination. It must be signed when you start a partnership and must be thoroughly in review by both parties before business is eminent. As the business owner, it is your duty to ensure all gaps in the contract are secure to a full extent. Start by asking yourself “what if” to see your options if the partnership goes south. Remember, the point of the agreement is to ensure any disagreements are in safe keeping. Most partnership contracts last for multiple years, which is why we’ve included it in the most profitable business contracts in today’s market.

4. Business Contracts for Employers

Company’s today are hiring candidates for all aspects of their company. Businesses need all sorts of employees in accounting, management, marketing, IT, etc. To put your company’s protection at best interest. Every employee should receive an employment contract to verify the employment relationship between you and the employee. This contract is an employment agreement.

An “employment agreement” is a document between an employer and employee stating the legal obligations and requirements the employee must follow. This can include policies, responsibilities or special obligations undertaken during the hiring phase.

Your employment agreement can also have multiple terms such as their salary, entitlement for dismissal, and benefits attached to the job. If an employee commits a fraudulent or mischievous activity that is not on their agreement, you can relate back to the contract and show the action deemed as not tolerated on company property. This will protect your company for years to come and will help your employees understand their rights and responsibilities.

5. Business Contracts for Office Space

Similar to having a car or renting an apartment, commercial compounds use a form of business contract identified as a lease. A commercial lease can be defined as a legally binding contract made between a landlord and a business tenant. The lease agreement provides the rights for a tenant to use the property for a business or commercial activity for a set period of time. In exchange, the landlord receives money in monthly or bi-weekly installments for the use of space.

Most companies use leases as a long-term strategy for saving money compared to buying or building out a large commercial building for their operations. It’s cheaper in the long run and is most beneficial to small-businesses who are newly starting up. When looking for a lease it’s important to ensure the contract is well suited for your company. Things to look out for are landlord permits, obligations, expenses, and tax increases. Chances are you’ll be in this property for a while, so ensure you’ve found the right space that is an adequate work space and affordable.

If you ever need a second look on the lease, feel free to seek professional help from a lawyer or financial expert who has a thorough background in the real estate industry. They will be able to spot any loopholes or gaps in the contract that might become present in the future. Just note there are fees for using their service.

6. Business Contracts with Banks

Most people today use banks to pay off their cars, mortgages or miscellaneous expenses. If you’re into real estate or are a full-time investor, you might be familiar with regularly asking the bank for money for rental properties. The most common contract to lend out money through a bank is a loan agreement. A loan agreement is a binding contracts between multiple party to finalize factors such as collateral’s, guarantees, interests rates and duration of payment.

A loan agreement has various characteristics that are essential for your business to understand. The agreement will have the total cost of loan, the payment schedule, the right to default, and the flexibility on use of the loan proceeds. Similar to the idea behind an office space, it’s important for your company to have a logical plan set in place to pay off the loan as installments arise.

Companies use loan agreements to increase their capital and expand their inventory. Conventionally people believe loans can only come from a bank, but loans can be found from a variety of sources. There are credit unions, public funds and private investors who are willing to loan you money if your idea or business model suits their liking’s. Just note taking a loan can be dangerous if not planned out correctly. Always sit down with a professional financial advisor or accountant to ensure your company has a plan to uphold the end of your deal.

We conventionally believe loans can only come from a bank, but in reality we can find money from many other sources. Share on X

7. Business Contracts for Purchases

Have you ever wondered how grocery stores and warehouses are able to purchase large sums of items at a time? Company’s use a business contract called a purchase order to connect the manufacturer with the buyer who purchases in bulk. It’s an agreement which sets the quantity of items with a negotiable price for a certain date. It also specifies the payment terms so both parties understand when they’ll receive or give payments.

For example, let’s say company X sells 1000 chairs to company Y for $100.00 with a delivery schedule of 10 days. Between them is a purchase agreement, stating 1000 chairs to be in 10 days for the purchase price of $100.00. The purpose of this contract is to ensure both parties remain ethical and receive payments or deliveries on time. Think about it like a receipt for an item you buy at a store. Let’s say you never got a receipt, would you be able to return an item back to the store? Or in terms of a large shipment, how will the buyer know if the seller is a scam? It’ll keep you safe in the long run knowing you have a written report if dilemmas arise.

8. Business Contracts for Contractors

Have you ever had an independent contractor perform work in your home? Maybe it was a kitchen renovation, a bathroom tear down, or a garage door replacement. To ensure you and your contractor are safe from legal liabilities, it’s important for both parties to sign an independent contractor agreement. An Independent Contractor Agreement can be commonly refereed to as a service agreement or consulting agreement. It’s a document that states the business relationship between a contractor and a client. More specifically, the financial aspect and service details in full clarification.

With respect to a small or large scale business, you’ll typically encounter independent electricians or construction workers who perform repairs or maintenance on your office space. Ensure the agreement states the offered service, contract end date, expenses, unfinished work and ownership rights upon completion. These are to negotiable when both parties sign a contract.

9. Business Contracts for Equipment

If you’re a company or individual who rents or requires heavy equipment for operation, then this section is for you. Whenever you lend out a piece of equipment, what should you do? It’s important for both parties to sign a business contract called a property and equipment lease. This is a contract that lists the terms and conditions for lending a piece of equipment, which includes information such as monthly payments, terms, deposits and ongoing maintenance requests. Doing this helps ensure the lent out equipment comes back in the same condition as it was originally sent.

If the lender brings back equipment in a poor condition, you can rest assured knowing the other party signed a contract stating their rights of usage for the respected tool. And if the lender fails to make monthly payments, you can bring up the contract in court or to the lender. It’s beneficial in the long-run in case any mishaps or future incidents arise.

10. Business Contracts for Dismissed Employees

During the lifetime of employment, employees tend to become familiar with your company’s motives. More specifically, the ins and outs of their respected industry. So what happens if the employee resigns? What happens if they starts their own venture with the information gained from your company? That’s where a non compete agreement comes into play.

Let’s say you hired a head engineer to design a world-class software for your company. A few months after your product strikes millions, your head engineer decides to hand in their letter of resignation. You can have the engineer sign an non-compete agreement to confirm all information from your company is not public to anyone within a time span of X years.

A non-compete agreement is a contract between an employee and an employer. It states the employee agrees to not enter into competition with their former company during or after employment. Legal contracts prevent employees from entering into markets or professions which are in direct competition with the employer. Simply put, it prevents someone else from taking your ideas and creating something new.

A non-compete agreement lasts for roughly a year, but is not subject to a lifetime holding. Information such as effective start date, reason for enacting, compensation, and location are visible on the agreement. For example, there could be an automotive company who doesn’t want their employees sharing valuable information with other manufacturers. Your company will stay protected long-term, which is why we’ve included it in our most profitable long-term business contracts.

Growing Your Empire

A lot of information on business contracts was presented in this article. Read it over, take notes, and apply your knowledge to ensure your business stays protected at all costs.

However, what if there was a way to grow your company and bring in new revenue you never imagined was possible? And what if this method is so powerful that you’ll never have to chase clients for revenue again? The secret is the High-Ticket Influencer program.

We’ve developed a new 12-week intensive program completely designed to help you grow your empire from the ground up. It doesn’t matter if you have almost zero revenue coming in. Nor if you’re hauling in millions of dollars per year. This program has everything needed to take you to the next level.

The program will coach you on the ins and outs of branding, operations, sales, financing, support and so much more. How about we share with you a sneak peak of the first three weeks of class?

Week one will teach you the strategies to build your own personal media platform. This will start intriguing more customers, and could start flooding your business with revenue.

The second week will teach you how to stand out in today’s market. We will show you a hidden formula to help you dominate any niche, business or industry.

And the third week will teach you the 7 most powerful YouTube secrets. There’s a powerful roadmap of why YouTube videos can make a business blow through the roof out of nowhere. And as a bonus, there are still 9 more weeks of mind-blowing content for you to discover in this program.

If you are ready to grow your empire and build your business, click the link here to sign up for our live masterclass. Slots are filling up fast, so reserve your seat while it lasts.

How Can Leaders Create A High Performance Team?

May 1, 2020 by Dan Lok

Whether you lead your team at work or your own business, you probably wonder – what makes a good leader? No matter what you do, the question is always the same – how can a leader create a high-performance team? As your business grows, you notice you cannot do everything yourself and you need to start having a team of people around you. Many entrepreneurs have a problem with being control freaks. They want to control everything and are afraid to let others make decisions independently. But you must know – delegating effectively can help you reach your goals faster.

If you don't know your team's goal - you're not doing your job as a leader. Share on X

So, how to build a powerful team around you? This is a topic we could spend hours talking about. But let’s start here: leadership, management, and human psychology – the key to success in business is in the right mix of these ingredients.

It’s fine to do a lot more work when you just start a business. But, as it grows, if you don’t have a team – your business will remain the same and won’t be able to scale. And if your team doesn’t work well together, you will face incompetent workers and inevitable losses.

With that said, if you’re a business owner and trying to build a successful high-performance team, you must understand your people. First, have a conversation with them. Listen to why they want to be there – by your side. What are their goals? Aspirations? What drives them? Only when you know answers to these kinds of questions and get to know your team will you know how to manage them.

A good leader will take the time and effort to do this. Communication is very important in all aspects of life, especially for leaders and entrepreneurs.

Let Go of Control

Hiring people with the same mindset will benefit everyone because those are the people who work together to reach the same goal – they have the same, shared, mission. With that said, finding the right people for your team is not easy. Usually, people come and go. Most organizations hire people who work set hours and quit if they are dissatisfied or unhappy. Many people work set hours, but do not really give their best to use that time efficiently.

The worse thing is, some business owners only think about how much money they make, and they don’t care about their employees. Sometimes they control everything – from money to sales. They hover over their employees, do not let them get creative, and do not give them the freedom to do their best. This is a part of the control freak mindset we mentioned earlier. The truth is – if you have this control freak mindset – you will only draw attention to low-performance employees. S

o, to start building a strong team, you must let go of the control. That’s the first and most important step.

Get Your Team Involved With Your Vision

To make people passionate about their work, you have to have one thing first – a compelling vision. Your vision is your greatest asset. And when it comes to leadership you cannot inspire anybody without a vision.

Think about history, when someone wants to conquer a country, they must inspire people by sharing a clear vision of the conquest. The vision inspires commitment. You show them – this is what we’re going to do – and – this is what our victory is going to look like.

Now, when you have a vision, you need to constantly share it with your team and remind them of it. Getting them excited about the vision is one way to build their level of competency and efficiency. Because people go through ups and downs… you have to keep reminding them of the vision and “selling” it to them over and over again.

Here’s a video for you about why it is crucial for leaders to have a strong vision

Show Courage

If you’re unsure about your vision, you better not share it. The only thing you want to share with your team at all times is unstoppable and unshakable confidence.

But then again… leaders also develop cold feet. Sometimes things don’t go as planned and you might want to give up. Commitment to a vision takes courage as well as self-discipline. Make decisions and stick with them. Build a vision, and develop a strong mindset. Your mindset is the key to success. It’s what will keep you going even when you’re not entirely convinced or when things don’t work out in your favor.

Inspire Commitment to Your Mission

When you have a vision you’re secure in – constantly remind your team it. If you’re building a business because you want to be rich – that’s a wrong mission and there’s no vision there to get others excited about. Why would they want to help you get rich? You can’t create a high-performance team that way. You need to have a mission that inspires people – beyond just your own self-gain. The reason being, if you focus on your own self-gain, it may inspire only one person – Yourself.

The thing is, people want to belong to something bigger than themselves. They want to belong to some big vision and know that what they do is important to them. They want to know that you can and want to make a difference and they want to know that this difference will matter in the marketplace. So, think about it and write out your “Mission Statement.” If your team is behind this mission – you will have a high-performance team.

Now, let’s talk about the most important part – maintaining your mission.

Establish A Culture-Driven Team

What makes up your culture is your value. Now that you’ve got your vision and mission, the third pillar of your team is the value of your company. What do you stand for? If you answer this question, you will be able to build a strong team culture.

In our team – culture is the key. People don’t separate themselves into different departments. Everyone is very helpful and supportive of each other and we work together toward our common mission. Everyone has a task, but we work towards our goals together.

We argue, learn, fight, and then get back to work the next day and it’s all forgotten. We may have our disagreements and different opinions, and we love that. Disagreement is where we grow and we cultivate different opinions. We lay down our different options and we find solutions together. We’re focused on growth and excellence.

We are committed to our work and we do not believe in 9-5 schedule. People who are looking for 9 to 5 jobs are not a good fit for our organization. They would not fit the high-performance team we are.

Avoid Self-Gain

If you’re a lifestyle entrepreneur, it’s going to be challenging to build a high-performance team. A lot of people will say: I want to work from home and I just want to make enough money by working from home. or I can choose my working hours when I work from home. What kind of a team can you build with this type of “motivation.”

Is this a proper vision? Mission? What kind of culture does this build? This is all about you and your needs, but where are your team-members? What kind of culture are you striving to cultivate?

You need something big to attract talent. A self-centered mentality will not build a strong team.”... Share on X

Big Things Inspire Millions

When Bill Gates said that he is going to put a personal computer in every household in North America, he presented an irresistible vision. With much determination from his high-performance team and himself as a leader, they achieved their vision.

Now, think about Elon Musk – travel through space – that’s a big thing. The kind of thing that will inspire millions…Even though it’ll take them 5 to 10 years or 20 years to make it happen – that’s a big goal to look forward too and work for. Let’s say you’re not thinking that big.

But not everyone is Bill Gates. So how do you start something small, yet inspiring? What should you do as a leader?

SurveyMonkey survey found that 87% consider access to health care to be a critical part of any job and 65% see opportunities for advancement as the key component of any good job. So, what can you offer to your employees? What are the things that are important to them that you can still offer? What is the big thing that they can have if they join your team that would inspire them to commit and devote themselves to your mission?

Be Upfront With Employees

Working for our team is intense. It involves long hours and hard work. We have high standards and we don’t tolerate poor performance. Bad performers just don’t last in our company. We’re very upfront with that and we let them know what they’re getting themselves into right away. If they’re willing to accept that and if that’s what they want too – they thrive to excellency. Their talents expand and strengthen and our team outperforms itself consistently.

With that said, it’s important to mention that only certain types of people thrive under pressure. They have high standards for themselves. These are the kinds of people that our team pays special attention to. We take time to get to know them…to find out what drives them…how they stay motivated and organized. When we know what drives our best performers, we know how to inspire and organize the rest of the team too.

Make Your Team’s Dream Come True

When you know what you can do for your team and you help them make their dreams come true – you get loyalty. When you’re upfront with your team, they’ll trust you more. Ask them about their personal and professional goals and talk to them about how you can make that come true.

Think carefully about what positions are the right fit for whom on your team. If you know their goals and dreams, you must match them well to the positions they hold and the growth opportunities and possibilities of that position. Your mission and theirs must align, but their expectations and your realities must align as well for your team to be satisfied. Dream big, and manage expectations carefully.

You Are Who You Attract – Inspire More Than Being Driven

We always tell our team – there are no limits to how much they get paid. It’s much more about how much value each of us adds. If you want to make $100,000 thousand income – find a way to add value and get there. It’s simple!

High performance people dictate their price. Share on X

So, if you can be a leader who’s inspiring and compelling, you won’t have any problem attracting talent. You will always have talented people who want to work with you. People will help each other and support each other on the way to the achievement of their mission. If the culture is right – disagreements will occur too. Conflict is a part of growth and a good team needs to know how to welcome opposing ideas and support each other in finding the best solution for all.

That’s the culture that we’ve created because of what Dan Lok is. This is something he inspires in the team. He welcomes differing opinions and ideas. We’re growth-oriented and we focus on excellence.

You are who you attract. Look within yourself...if you attract bad people, you need to rethink your core values, your vision, and mission. Share on X

So, look at yourself…What are your standards? What and how do you perform best?

Surround Yourself With Inspiring Mentors

It’s more of a pull than push effect. Leaders with the high-performance team must know how to create energy and enthusiasm. If you do this well and you inspire people to commit, they will think about how to add more value.

As a good high-performance leader, you need to keep your people inspired and remind them that they are on a mission. You must be a great communicator. Someone who understands people, their psychology, and who can get them talking about their struggles as well as their dreams.

When you are a good leader and you manage to inspire others, you will attract amazing talent – talented people want to follow a good leader.

Good leaders, attract amazing talents – talented people will follow you wherever you go. Share on X

The most important part of your success as a leader is your ability to inspire others. If you can create a compelling vision that others want to be a part of, then you will attract talented people ready to commit and do anything to achieve their goals. This is easier if you surround yourself with people who inspire and drive you.

If you don’t have an inspiring advisory board, then you will not be able to sustain your enthusiasm and drive and it will carry over to your team. Find mentors and advisors who can provide you guidance and be a system of support for your growth. Surrounding yourself with the right guides who will inspire you is the key to your ability to inspire others.

These mentors can be people who helped you as you were building your career and your business, or they can be people in your industry that you find inspiring and want to learn from. It is never too late or too early to get good mentors and advisors. Research and reach out to people you want the support from.

Build An Advisory Group

No great leader did everything on their own. We hear often about how they inspired and motivated others to take action. But what we hear less is who helped them and inspired them to move forward.

The truth is, if you are serious about your growth and making your team into a high-performance team, then you need to challenge yourself to constantly improve and reinvent things. You have to be in the loop, informed and driven to always look for the next best thing, for the next best strategy, and the next thing that will make your team more powerful and more driven. People are inspired by innovations and transformations. It’s a part of our nature.

You have to find a group of people to share your business ideas and struggles with and allow them to take you to the next level. Dan Lok always says that one of the main elements for his immense success in business was that he always tried to be the “dumbest person in the room.” He sought out people who are better, whose businesses are at the next level from his, the ones whom he can learn from and grow with.

Now, you might have great friends and family, but to be truly successful you also need to be surrounded by people who are trying to achieve goals similar to your own. You need to seek out people without any other agenda but providing support to you and your business. Experts who know how to help you grow and build a successful team and expand.

If you do not know people like this already, find a group to join. If you are serious about growing and expanding your business until it becomes a global force, click here to learn more about Dragon 100, Dan Lok’s exclusive advisory board for Distinguished Entrepreneurs. In Dragon 100™, members receive the proven systems, templates, and processes that will take them from $100,000 to $1 million … and then from $1 million to $10 million+ and beyond.

7 Pricing Strategies To Make People Buy Your Products

April 25, 2020 by Dan Lok

Every entrepreneur thinks about the best pricing strategies and asks – How do I know what to charge for my product or service? It’s a common question. Many business owners are unsure of how to set their pricing. You want to get paid for your efforts, but will your pricing reflect both your value and your worth?

Pricing is a fickle thing. Done properly, it can be used as a marketing tool to attract the perfect client. Improper pricing could be setting you up for trouble such as not getting paid enough for your time, the kind of clients you don’t want, or no clients at all.

So how do you know what to charge? What is the best way to leverage pricing to position your business? We have 7 pricing strategies to share that can help you decide how to best position your value and in turn, set your pricing model.

Are You Making These Common Pricing Strategy Mistakes?

So let’s say you want to be super competitive and make sure that you have the best deal in town. Then, you realize you overshot it and are not charging customers enough. Before you know it, you are too deep in debt from overhead to recover and end up going out of business. When your pricing is too low, you are not making a profit. Regardless of how many customers you get, if you are not covering your expenses and still making revenue your business will be short-lived.

Now, on the flip side, say you know that you are sitting on gold. You know that you’re worth top dollar and you need everyone else to know it too. Unless you have the following, marketing, and positioning to support premium pricing, you are going to have a hard time convincing customers that they should pay top dollar for what you have to offer.

If you enter the market charging far more than anyone else in the industry, you are not going to have any business. No customers for you means no revenue. Without enough steady flow of income, you will run into the same problems as undercharging. You need a healthy volume of business to have any hope of growing.

So how do you avoid these two most common mistakes when deciding on how to charge? Here are some suggestions for pricing strategies that might work for you.

Pricing Strategy # 1: Price to Your Competition

Though most entrepreneurs never want to think of themselves as average in their industry, pricing relative to your competition can be a good place to start. A common way to determine average pricing is the literal numeric value. Take the top 3 companies in the industry and find the mathematical average.

If you are in a commodity industry, you may want to consider slightly underselling your competition. This may be a successful pricing strategy for your particular niche. Just be aware that when you are pricing in direct relation to your competition, you are most likely always going to be fluctuating in reaction to either the marketplace or other companies. This defensive position in pricing could quickly lead to charging too little.

Pricing Strategy # 2: Breakeven

This pricing strategy is most often used when first entering the market as a way of testing the waters. The idea is to charge at a point where you are just able to pay the bills. That’s right, just cover overhead costs with little to no profit. It’s also known as self-liquidating. You have to use caution with this one or you run the risk of going from breakeven to bankrupt. But why on earth would you want to charge at cost, without profit? Great question!

The concept uses a low ticket offer to acquire customers and build a following. The profit, then, comes from high ticket selling when you introduce an appealing secondary offer at a higher cost. Consider this a bonus marketing business tip in a sense. It’s a way to generate leads for a higher price point because the breakeven offer has already drawn them into your funnel.

Pricing Strategy # 3: Price To Time

This is an extremely popular model, especially in the professional services industry. You may know it as ‘charging by the hour’. Some companies adopt this concept by billing a monthly retainer or charging at different time intervals. Either way, you are seeking compensation based on your time output.

We observed that as the world shifts from a job economy to a skill economy, this model is becoming more and more outdated. It still has a place on certain occasions, but in general, charging based on results instead of time makes clients a lot happier and much more eager to pay you top dollar.

For example, when you charge based on the time it benefits you to take longer to complete a project while a client is focused on getting the job done quickly. Shouldn’t you be rewarded for working efficiently? This strategy creates a conflict of interest.

If you charge based on results you have the ability to deliver top performance in a timely fashion and still earn according to how much value you have brought to the customer. More on this in #7.

No fee is too high for success and almost any fee is too high for failure. Share on X

Pricing Strategy # 4: Price To Cost Plus

Often found in construction, this method of charging is used by formulating a total price to complete a job, then adding a markup percentage. This strategy is useful in some cases, but once again, creates a conflict of interest. Spending more money drives up the job cost and results in a larger number for the markup percentage. In this respect, using a preferable material at a lower cost is not as profitable. We suggest aligning the focus of both parties on achieving efficient results.

Let’s say the project price is set at $1M. You as the service provider are expecting to receive $150K in payment. You might consider proposing that, if you can finish the project with equal or better quality at a cost of $850K, you would receive a 20 or 30 thousand dollar bonus. And a secondary bonus amount for finishing ahead of schedule. This way, everyone on the job is working toward the same goal – a time conscious, cost-effective, quality project. You get to reap the benefits of bringing more value to your client.

Pricing Strategy # 5: Price To The Package

Creating packages is a well-known sales tip. It is about the perceived value your package offers a client rather than the actual cost to you. Combining products or services into a neat delivery system with a higher value than the price tag creates an irresistible offer.

But isn’t that called a discount? No. A discount is lowering the actual price. Instead of lowering the cost a customer pays, a package would increase the amount of benefit a customer receives. A good rule of thumb would be a 1 to 10 ratio of cost to benefit. If you are charging $1K for a deal, then the value to the customer of each element separately should add up to about $10K. Now, this doesn’t mean it would actually have to cost you this much, but it should bring this much value to whoever buys it.

When forming packages, anticipating the future needs of your clients can be extremely helpful. If you are teaching a course that is easily performed on a particular software program, consider including the software they are most likely going to need or want. It’s more valuable to them to buy it all together at a flat rate than purchasing each item separately from different sources.

Pricing Strategy # 6: Price To Positioning

Positioning is a pricing strategy that has everything to do with supply and demand. The shorter the supply, the more in demand that product is. If you have the only supply of the thing in demand or limit the supply, you can charge more for it. Dan Lok has only 6 hours a week available for consultations. He has 24 hours in a day, just like everyone else. Since no one can increase the supply of time, the price of his services goes up.

This, of course, assumes valuable positioning, meaning that there is enough of a demand for the product or service you’re offering to warrant what you are charging. Limiting or controlling a supply does little good if there is no demand for it. No one will pay for something they don’t want.

Pricing Strategy # 7: Price To Value

This charging method is used frequently in high ticket selling because clients pay for premium results.

The concept is simple. You price your services based on a percentage of the results you bring to your client. Whatever the amount of increased revenue you deliver to them as value, you get a percentage. You make them an additional $1M, you get a percentage of $1M. If you make them $10M, you get a percentage of $10M.

The focus of both parties is now aligned and everyone is working in the same direction. Clients don’t care how much time or effort you’ve put in, as long as it’s bringing them results. If you can get it done in a few hours a week, you don’t make any less because it’s not based on time. The faster and more efficiently you can do this, the happier your client is to pay you for it.

The more value you bring, the more you earn. There are no caps, income ceilings, and no limit to how many times you can do this, over and over. You’re getting paid by what value you bring to their time.

How To Be Strategic With Pricing Strategies

Now you have 7 different suggestions on how to charge your customers and clients. They don’t each have to be used separately and independently of one another. You can be creative with the way you combine and adapt these pricing models.

You may choose to combine price to time and price to value by charging a monthly retainer while still collecting a percentage on the value of each individual project. Perhaps you are more well known in your industry and want to leverage price to a position with a price to the package. The possibilities are endless.

We suggest that you do give this some thought, though. It’s an important decision that has a big impact on your livelihood. Putting the wrong pricing method on even the best product or service can lower the value tremendously. Be sure that you take into account your industry, your specialization level, and your phase in the market cycle when determining what pricing model works best for you.

Did you notice that some of the strategies we mentioned had a particular industry for which they were best suited? Did you know that there is actually an industry that is best suited for one of the pricing strategies?

What You Need To Know About High Ticket Selling and Pricing Strategy # 7

The price to value model is quite powerful. It highlights the worth of what you have to offer a client and sets the tone for a mutually beneficial relationship. If you combine that with a High Income Skill like High Ticket Sales, your earning potential is limitless.

High Ticket Sales naturally lends itself to a results-based pricing strategy because that is exactly what you are trying to achieve – results. You are converting leads into clients and bringing additional revenue to your client with each sale.

It would make sense then that your client would be happy to pay you a percentage of every conversion amount. If that happens to be a percent of a very large number, the better for you both. More revenue generated for your client and more commission for you is a win-win for everyone.

This method of charging only works, of course, when there are actual results and conversions. So, where can you learn a skill that allows you to achieve valuable results? If you are already in the sales industry, how do you learn to improve your conversion rate?

How To Make Results-Based Pricing Work For You By Learning High Ticket Sales

There are many traditional sales tips and techniques that seem to have passed the test of time. In reality, many of these time-honored practices are actually repelling more customers than they are converting. Phrases and tactics that were once the industry standard now trigger consumer defenses.

If these methods are so appalling, why is anyone still using them? Well, no one has taught these salespeople any differently. It’s the equivalent of teaching technology from an outdated textbook. Unfortunately, the old book keeps getting handed down instead of updated. The information is simply not relevant anymore.

“The Traditional Practice Of Sales As A Business Discipline Has Become At Best Ineffective, And In Many Cases Flat Out Obsolete.” - Forbes Share on X

You may be aware that Dan Lok offers a series of programs which teach High Income Skills. One of the most popular is the High-Ticket Closer™ Certification Program. It’s a 7-week intensive course on how to convert leads into sales by utilizing the position of value for the customer. But what you may not know is that Dan condensed this program into a 64 minute and 47 seconds lesson called The Perfect Closing Script and made it available to the public.

You can now learn the value that the skill of closing holds for you, your client and their customer in a single afternoon. Gain a competitive edge in your industry by knowing which common sales mistakes to avoid. Learn what never to say on a sales call. Stop using a pricing strategy based on how many calls you made or a flat rate for each conversion. Learn how to make results-based pricing work for you by learning how to increase your value.

Discover How To Get Paid Based On The Value You Bring

High Ticket Closing is a skill that directly lends itself to pricing based on value and results – not on time, cost, or what competitors are charging. It allows you to get rid of pay caps, sales quotas, and unqualified leads. Stop selling with the sleazy stigma and have both your clients and customers thanking you for your work.

Are you serious about getting paid top dollar for the value you can bring to a business? Are you ready to start getting more sales, closing deals in one call, and making more money in less time? Do you want to learn more about a skill that works with a results-based pricing strategy?

If you are done with sales-killing tactics and outdated training, find out how to generate higher revenue through more conversions. Discover how you can start increasing conversions and getting paid for your worth now by clicking here for The Perfect Closing Script.