13 | Law of Averages
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[00:00:00] Hi guys. Okay. How many of you out there are sports fans? Well, get excited because today the analogy and the advice that I'm going to be sharing from one of my favorite business mentors, Jim Roan, who I wish I. I had been able to meet and connect with
But sadly passed away in 2009. But Jim is a just brilliant businessman. Super famous if you haven't ever heard of him. And certainly you can Google away and watch some amazing video of his audio coaching and teaching. There's so much good stuff out there, but I'm just going to quickly share today's episode. It'll be a nice, easy, quick one for you guys to listen to under 20 minutes.
And I'm so excited to share the principles that he teaches because they have been such a game changer and just opening my mind to how to grow my business in any capacity and honestly grow any business, whether it's a network marketing business or a traditional business [00:01:00] on or off social media. So get excited for today's episode.
And also this is the first time I'm going to be sharing the episode on YouTube. So. I got it just went off the cup with this one but i can't wait for y'all to listen and check it out on youtube and share away so here we go
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Hi friends. Yay. I am so excited for today's conversation because it's probably one of the biggest pieces of advice I have ever learned from a man who is a brilliant genius and the business world for many, many years. And it's something I'm so excited to share with you on my podcast and on YouTube for the very first time, I just kind of had this impression to hit the record button and just start talking.
So if you're watching this and this is one of the first YouTube, or if you're listening on the podcast welcome. I'm so excited to have all of you guys here today. So let's dive in to today's topic, which is all around the [00:03:00] law of averages. So if you're not a math nerd like me, you might be tempted to run away.
You might be a little bit scared at this point. But don't worry. I'm going to really, really dumb it down. And in fact, I am not the one that came up with this concept by any stretch of imagination. jim Roan, who is a legend, both in the network marketing industry and also in the business world.
Who made this concept really famous and teaches on it a lot better than I do. But just in case you haven't heard of it, I'm excited to be able to share it with you today. 'cause I'm really curious. Do you ever feel, especially if you're trying to build your business off of social media, which as we've discussed in previous episodes,
Is more based in volume rather than value where you're kind of banking on growing a big following and hoping they come to you rather than having to have conversations and build relationships with people and be a little bit more proactive on your end. So if you are like me and you are looking to grow your business without social media.
You might be feeling a little bit [00:04:00] overwhelmed by the number of conversations or even just the conversation in general that has to happen in order to grow your business. So I'm curious, is that something that you ever feel overwhelmed by? And also if you ever feel just overwhelmed by how far you have to go or to grow in your business, to get the profit that you're looking for to build the business that you have in your dreams. Right.
So today, these principles behind a lot of averages are going to hopefully help you really simplify and build up that confidence that absolutely you have everything it takes right now. But that you can and will continue to grow through it. So I'm going to share a story because my buddy, Jim Rowan loves to use the analogy. When he talks about the law of averages. He loves to talk about baseball and batting averages, but as a golfer, my daughter and I actually just started playing golf last year. She's on the middle school golf team.
And so we'd both been playing about a year and a half now, and it's been really funny to watch our [00:05:00] progression in the sport grow. And I think it's a really great analogy to what Jim says. So I'm going to kind of share the principles through the lens of the sports world, because if you're listening to this, it is the week of the masters.
So, which is one of my, favorite times of the year is I think it's really fitting. I'm also coming off of March madness. Right? So if you're a sports fan sports enthusiast, You're in the right place. But, okay. So let's talk about the law of averages through Jim Rome, and also I feel compelled to share one of my very favorite quotes from another author that I love.
At named James clear and he says, the person who gets one shot needs everything to go. Right. The person who gets a thousand shots is going to score at some point. So find a way to play the game that ensures you get a lot of shots. So I think that really kind of sums it up. And just one little easy quote from James clear.
But let's talk about how simply Jim Roan puts it. Okay. So Jim says [00:06:00] that basically, no matter what you're doing, whether it's a sport, whether you're in business, whether you're in sales network marketing, Essentially you are going to have a ratio of people that purchase your product or service. So essentially for every person that you talk to you, yourself, your team, if you have one, your sideline competitors, if you have those as well, everyone's going to have their own different ratio of people who purchase.
So just using allergy of one in 10, So when I first started playing golf, I was kinda lucky if I hit the ball well, like one in 10 shots. Right. If you've ever gone to the driving range and you are beginner at golf, or maybe you play top golf, which is so fun, but. Have you ever done that? You know, you're not going to hit every shot well, right. Unless you've been doing it for a minute. And in fact, if you're like me,
You might not have very many, right. But. At that very beginning, that baseline stage. Even when you're starting out, you will hit the ball. Sometimes it might be [00:07:00] one in 10. Meaning if you are sharing about your product or service with 10 people, it might be that one and 10 of those decide to make the purchase with you. But guess what?
One of the big pieces of the Jim Roan advice puzzle. And he's like, I don't know why this work, but it works is once you have that ratio, meaning if one in 10 times you hit the ball or one in 10 people that you talk to about your business, your product or service actually makes a purchase from you.
You can kind of expect that ratio to continue for you. And so what that means is, as Jim says, if you talk to 10 people and one purchases, You could talk to 10 more people and you'll get another purchase and you can talk to Denmark, get another purchase and so on and so forth. So the first principle is that you have a ratio. You do, you always have a starting one. You also have one right now in your business.
Principle number two is that that ratio [00:08:00] tends to continue, right? But the best part is principle number three. Which is the ratio tends to grow as you grow in your skill level. So flash forward a year and a half. Into my golf game. I hit the ball pretty much 10 out of 10 shots now. Seven out of 10 might be good shots. Three out of 10 might not be good shots, but I am hitting, hitting the ball. Well, right now I'm kind of tracking a different ratio, which is the number of Bowie's that I get in my round, which mine is not going to look anything like the guys that you'll see on the masters.
So I'm not comparing. Their numbers to mine. In fact, you can go back to a previous episode called embrace your numbers. If you want an entire episode centered around that on my podcast. But you essentially. We'll get better. And your ratio will improve as you improve. In your conversations as you improve in your technique, as you figure out what's working for you and what's working for others. [00:09:00]
Because success leaves clues. And I want you to, instead of getting stuck in the comparison game, which is totally rampant on social media, and that's one of the reasons why. I love being able to take my business off of social media. Instead of dealing with the volume. We're looking at the people who might have tens of thousands or hundreds of thousands of followers.
That might be resulting in some big number sells wise, as we've already talked about on the podcast. We're going to focus more on building value, and I bet you anything, your ratios will be a bit higher than someone who is building on volume because you're going to be building on. Trust on conversations and on sharing what works. So we're going to erase that comparison trap from our mind, and we're going to focus on what works for you, but also know again, that success leaves clues. So if you have someone, for example, if you lead a team, when I had a bridal shop in Savannah, Georgia,
I could know that there was about a 50, 50 chance. So five out of 10 brides, right. [00:10:00] That we would see in the bridal shop would make a purchase. Now, some of my team might have a higher closing closing ratio than I would have, or that someone else would have, but success leaves clues.
Always. And so when I mean by that is whether it's someone on your team that you're wanting to duplicate to another team member, or maybe again, it's a competitor or someone, you know, on a sideline. There are so many great avenues out there for people to share. What's working for them. And a podcast or YouTube is a perfect example. And you can kind of find out what's working for others so that you can improve your ratio yourself.
So again, the three principles are number one, you've got a baseline. Number two. That baseline ratio will tend to continue. And number three. That ratio is going to continue to grow as you grow and skill set. So, what does that mean for you and your business and how can you apply this to our business today? To [00:11:00] help you create forward momentum. Okay. So this involves one of my favorite things to do. And it's something that I've talked about before on this podcast, but I'm going to show you a visual. If you are watching on YouTube and I will share a link to this funnel PDF in the podcast notes. If you are listening to this on the podcast,
But essentially your homework were the piece of advice I'm going to give you today is to make a list. So we've talked a little bit about the power of a funnel, where you've got all the people in the world who may or may not want to purchase your product. Right. And then likely no matter what business model you are in, you are going to have this funnel where you are going to have these subtle call to actions within each of those funnels or within each of the pieces of the funnels.
That will guide your potential customer naturally through to the point of making a purchase. So I am in a makeup company, a network marketing company, and the funnel example that I'm going to show you. Is essentially something [00:12:00] that we call a dream teeny or dreamy for short. And it's essentially somebody that we think would love the makeup as much as we do possibly enough that they would want to share it as a business model. And so essentially a dream TIMI or dreamy for short is just someone that hasn't tried the makeup yet.
But somebody that I think might love the makeup. So again, if you're building on social media, this is going to be a big funnel, right? We've already talked about the fact that if you've got 200 followers on Instagram, that's 200 people who have raised their hand and a lot of them might be in this category. Right.
So, when you're looking outside of social media, you don't have to have such a big list. You do have to do the hard things and have some conversations, but I promise you they're not icky or weird conversations. Okay. They are just simple conversations. Like what's your current makeup routine, right?
Or I'm having a contour class at my house, or I did one last week on telegram. If I were to send you a link to join into the class, would you be able to [00:13:00] tune into the live demonstration? Wednesday night, eight 30. And it's a simple question either. They're looking for it or they're not. And either way like general and says.
Your ratio is going to be different, but at least you're committing to the process, the action. And guess what? So when I invite them to be color maps. So in our business, it's let me know if you'd like to be color matched. Right? So again, you can do that in a big way. On social media, you can do it in a small way by.
Inviting neighbors over to play makeup or again, killing many. Birds with one stone by inviting them into a contour class virtually or in person. But let me know if you'd like to be color matched is a great little call to action to guide them to that. Now here's where another ratio is going to emerge, at least for me. And again, this is going to be for, for you as well.
So the funnel, when I had my bridal business, this would look like all the brides who are engaged in the world. Right. Then some of them would make appointments with me to try on some of those appointments wouldn't even show they might purchase their dress elsewhere. Right. And [00:14:00] then the next piece of the funnel would be the actual appointment themselves, where they are trying on the dress.
And then the next step would be them actually making that purchase. Right. So again, my next step from the color match is for me. My ratio is about six out of 10 of my virtual color matches decide to become a customer and make a purchase. Whereas it's about eight out of 10. That ratio improves for me when I take that off social media and focus on in-person endeavors. So I suspect that it might be the same for you because it's you, right. You're building relationships.
You're providing value in a very tangible way. And you can go back to episode eight. For some more reasons why I believe that you can grow your business off of social media, if you so choose. So check that out. If you haven't already. But again, some of them, not, all of them are going to decide to become customers.
Then in our business, we have a very generous hostess compensation. Reward system, if you will, where someone who loves to make up can [00:15:00] get a lot of free makeup just by simply sharing it with their friends. And so when I have customers that I know have ordered, maybe more than one time, they're already loving the makeup, like, hello. I love me some Lulu lemon. If I could have a way to get some free Lulu lemon by sharing it with my friends.
Do you think I'm going to do it, I guess, is that a weird thing for Lulu lemon to reach out and ask me? No, I'd be all over it. Now, maybe not every Lululemon customer is going to want to do that. Right. But some will. And again, that's where our ratio is going to develop. So I have made a list just like this.
Where I made a big list of all my customers. And I invited them to host a class for me. This was all virtual. Back about a year and a half ago. And I had to have about 60 conversations to find about 12 hostesses, which again, that's my ratio in that moment. But if I needed or wanted or desired to do 10 to 12 more classes, guess what.
I know that I could make a list of 60 more customers and make those same [00:16:00] invitations share what's in it for them, which is getting some free makeup for a product they already love. Right. And then they can host a class it's win-win they bring me, their friends and family. And they get less free makeup in the process. Right.
And then finally, for us, since we are a company that has a distributor program, some of those hostesses may want to decide to join me in business. So that's why that little green circle is at the bottom of the funnel for our businesses, because naturally about one in 10 of our customers, that's the ratio that I tend to see, especially if you get brave and talk to customers.
Want to join you in the business. And so this is a way that you can guide your customers through our company any way through that funnel to make a purchase. And you'll note those ratios for you. All throughout the process. So that's gonna be your homework today is going to be, to make a list. My friends, so yours, [00:17:00] doesn't have to look like this on the funnel. Though, certainly if this is applicable to you, I will share this PDF for you to print out.
But essentially what you're going to do is you're just going to make a good old fashioned list. I swear by a good notebook. And I can't even tell you, I mean, I do everything from, to do dumps. Too. You know, here's something list for my kitchen, all kinds of things, but I love to do a physical written down list.
I've also done them in my phone, but I find like under the the notes app, there are the reminders app. I think it is, but I find that they aren't as effective as physically writing out the names of it. So make a list. And then your second piece of the homework is going to be, find your call to action for each of those names on that list to invite them to the next right thing. That's right for them. Right. So in your business, it's going to be different than my business.
And only you can know what that next step is, but when you take away that kind of macro focus of like this. You know, large volume based business on [00:18:00] social media and you focus down on real people that you may or may not know, or that you hopefully have built a relationship with. Of trust and connection.
Then you're going to know what the next conversation is going to look like for that, for that person. Right. You're going to connect with them, genuinely compliment them and invite them to do whatever's next for them. And some will. Most won't, but all could write. And you never know until you do the hard thing to connect with them and invite them. So again, remember this, you've got a ratio.
You might know what it is. You can kind of figure that out as you go now. And that ratio is likely going to continue and it will grow my friends as you get better. So I hope this information is helpful for you and I can't wait to see how this impacts your business. Don't forget that we have an awesome community over on telegram. That is called the scale without social for female entrepreneurs group. And you could basically hop [00:19:00] on in there and connect with other entrepreneurs who are also trying to build and grow their business off of social media without social media.
You can text the word podcast 2 9 1 2. 4 0 5 8 9 1 2. So again, text the word podcast, one word. 2 9 1 2. 4 0 5 8 9 1 2. and it will send you a link to that group over on telegram And we've got great, great you know, conversations happening in there. Great connections. And it's growing really quickly. We would love to have you as well. So, thank you all so much for listening today. Definitely Google Jim Rowan. If you want more law of averages, goodness. But I'm just so thrilled to share some of this wisdom that has impacted my life. And I can't wait to see how it impacts yours as well. Thank you guys. Have a great day.
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