Compressing Time Like The Agents That Kill It

Hey, guys. Alberto Riehl here, and in this video we’re going to be talking about compression of time. Now if you remember the last video, we were still having some audio problems. We talked about the evolution of a badass. I finally got my microphone to work, but you know what’s funny now is for the first time I’m using this, you get to hear yourself, right? And if you’re a musician or you’ve done stuff like this before, you know what I’m talking about. You can kind of hear yourself, and it’s kind of distracting. So we’ll see how this video goes.

But as far as the concept goes and the strategy, compression of time, it’s very powerful. I first learned about this in The 4-Hour Workweek. If you haven’t read that book, guys, I suggest that you get it. Tim Ferriss, great book. He was able to take a 40-hour workweek and compress it to four hours. It’s called The 4-Hour Workweek, and if you’re anything like me and you’re hearing this for the first time, you’re probably a little bit skeptical about it, but the reality is it’s 100 percent truth. It works. You just need to know a couple things about your business before you can put into play. So what I’m going to do is, I’m going to give you two examples. First example is how I use compression of time in our business today to create an unfair advantage over the other people that are doing similar type things, and I’m going to give you an exact example if you’re a life insurance agent, how you can take this principle and take your monthly income and turn it, compress it into a monthly income. Did I say monthly? Take your yearly income, compress it into a monthly income.

Okay, so let’s get started. The first thing you need to know is your numbers. You have to know your numbers before you can compress time. Now, for most of you in the insurance business, I just lost about 80 percent of you. It’s a sad thing. We talk to agents every day ,we ask simple questions like, what’s your cost of acquisition? What’s your average commission per sale? They can’t answer it. Guys that have been in business for a long time, and people will use an excuse, “Well, I just got started in business.” You should know your numbers. There’s an 85 percent chance you will be out of business in your first year. You need to know your numbers right away. “Well, I don’t really keep track of that metric.” Guys, it’s excuses. Know your numbers. Okay? So with knowing our numbers, I’m going to share with you how we use it in today’s business to create an unfair advantage.

Today most of our money goes to research and development. We’re always testing new things. We’re testing different angles, different mediums, and the business today is moving faster than ever before, right? And if you listen to any of the thought leaders, they’re saying that, speed to market. Right now speed to market is one of the most important things. So you got to be fast, especially if you do your business online. The Internet is changing faster than ever. If you use mediums like we do, like Facebook, experts say every six months Facebook changes. So what you’re doing right now, in six months, it won’t work. Now for most insurance agents, they’re running their business the exact same way they were running at 10 years ago, 20 years ago, right? If you’re a dinosaur, you’re still doing the same thing. Could you imagine in today’s world to be relevant on Facebook every six months it completely changes. YouTube, you’re probably watching this on YouTube. Same thing.

So let me show you how we use this. So we know that when we’re testing a new angle, right? We’re putting money into it. Again, most of our money goes into collecting data, trying out new angles, new images, new adds, new text, and all kinds of different things. And so we know that we need a hundred responses from qualified people to know whether the test works or that strategy works or it doesn’t work. That’s very important. You need a good enough sample size. A lot of times people will get one or two negative responses or like, “Oh, this doesn’t work.” You didn’t give yourself a chance. On the other side, we have people that start out, they get one or two positive responses and they’re like, “Oh, this works.” And then they double down on it, and they ended up losing their ass. That’s not enough of a sample size. So what you need is at least hundred. At least in our business, we need a hundred responses.

Now we know that each response, a qualified response in our business costs us $100. Now so what that means … You can see this okay? We need to spend, we need to invest in a test $10,000 to get a hundred responses to see if something works or not. Okay? $10,000. So here’s how we compress time. A couple months ago I was about to go to a convention that somebody was having with life insurance or insurance stuff in real estate, and I was about to go, and then one of my buddies said, “Alberto, you don’t want to go. The speakers there are doing 10 percent the business you are. What are you going to learn from somebody that’s doing 10 percent of the business you are?” And then he told me what they’re doing as far as their testing goes. So here’s how everybody tests this. Now, the average person out there spends $100 a day when they’re testing. That means they need to run their test for 100 days.

After 100 days they’d spend their $10,000 and have their hundred responses, right? But guys, a hundred days? That’s over three months. Again, Facebook every six months changes. So you’re taking over three months to figure out if something works or not? And then two months later you got to start all over ’cause Facebook changes. That doesn’t work. So here’s what we do to compress time. This $10,000, I don’t want to take three months or 100 days to do it. I like to do it in one week. And actually I like to do it in one work week. Keep it nice and neat, Monday through Friday. That’s five days. So what I do is I spend $2,000 a day. $2,000 a day, times five days. There’s my same $10,000, right? So while they’re taking a hundred days to spend their 10,000 and get their hundred responses, I’m spending 2000 a day taking five days to do it, to spend my 10,000 and getting my hundred responses.

And that’s how I like to do it. I start on Monday. By Friday my test is done, and then I take the weekend. I love this stuff. I live data, I love the numbers, and so I can’t wait to put my family to bed, and then I start working on the numbers. Friday night, Saturday night I’m working on the numbers while my family’s sleeping, figuring out, okay, what didn’t work, and I make sure I get a lesson out of it. What can I learn from that? It didn’t work. Okay. Throw that out after I learned, get something out of it. What did work? Okay. We’re going to double down on that. We’re going to try some more variations, see if we can make it even more powerful, make it even better.

And then on Monday, by Monday I’m relaunching another test. So on Monday, while the other guys are on day eight, right? Of their test, day eight, that means they’re eight percent done. Eight out of a hundred days have been done. I’m already starting on my second test. I’m running laps around the competition. Does that make sense? I’m just running laps and laps. By Friday I’ve done another test. They’re barely on day nine or 10 or whatever the hell that is. Does that make sense? So it gives us an unfair advantage. We get our data, we get our responses 10 times faster than the competition. Okay?

Now let me show you how you can do that in your business. You’re saying, “Okay, well, that’s great in your business.” You can apply it in marketing with your business as well. But let’s do it. Let’s say you’re an insurance guy. We’re going to use … You earn 83,333 a year, okay? That’s about average, right? 83,333 a year, and we want to turn that into a monthly income. The cool thing is is that, if you’re earning this monthly, guess what? 83,000 times 12? Do the math. It’s a million dollars. That means you’re making a million dollars a year. So again, we got to know our numbers. First thing we need to know is know what our average commission is. Now, I know that in our entry-level program, we have several levels, but our entry level, which is our lowest commission, our guys are earning $4,000 per commission. They do this in one call, one hour, actually less than an hour. About 45 minutes, okay? 48 minutes. $4,000.

So we got to divide 83,000, which is what we want to do per month, and that gives us 21 sales. So we have to get 21 sales. 21 times 4,000 is 84,000, close enough. And we have to do that, not in a year, but in a month. 21, right? This is very simple math, guys. Check this out. So now, to get our 21 sales, we know we must go on 42 appointments. Now, we’re being super conservative here. We’re saying 50 percent closing. Again, you got to know your numbers. This is what we share with people. The reality is our numbers are much better than that. Our average guy right now out of the gate, which is at the worst they’ll ever be, doing their first presentation, is closing over 60 percent. We have guys … We have a handful of guys in the last 30 days, close over a 100 percent. We had one guy had 27 appointments, got 31 sales. That’s over a hundred percent closing. But let’s be very conservative. 42 appointments to get our 21 sales, right? Well, how do we get 42 appointments? We know that to get 42 appointments, we need 84 responses. These are qualified prospects, life insurance prospects knowing exactly what we sell and they’re ready to buy life insurance now.

We need 84 of those. Okay? All this needs to happen within a 30-day period right? Now, ow do we get those 84 responses? Again, we know our numbers very well, and we know that in order to get 84 qualified responses, our message needs to reach 8,400 people. 8,400 people. Wow. Well, that’s how amazing these 84 responses are. These aren’t leads. These aren’t crappy things that have been stomped on a hundred times like maybe you’re working with right now. These are truly 84 people that are ready to do business now. We have to go through 8,400. 8,400 we have to reach. So this is like digging for gold, right? This is a needle in the haystack. You can see how good this 84 people. Out of 8,400, only 84 people are good enough that they’re going to be chasing us, and they’re ready to buy now.

Now, here’s where most guys, if you’re a dinosaur, most life insurance guys are, doing business the way it was done 10, 20 years ago. It’s impossible for you to reach 8,400 people, right? Friends and family. That’s how you guys are doing it? I don’t know about you, I don’t have 8,400 family members and friends that I can bug, right? Maybe you’re doing referrals from clients. How long before you get 8,400 referrals? Years, right? What about referrals from circle of influence? Maybe your CPA or tax attorney, whatever it is, how many? Years before they give you 8,400, right? What about networking groups? Years to do this. Seminars? Years, man, years. And we’ve got to get it done within 30 days.

There’s where the power of our program comes in. We can reach 8,400 people in a day if we wanted to. In a day. Actually I know how to reach 8,400 people in one hour. One hour. I can reach 100 people. Couple of clicks of a button, and I reach 8,400 people. Okay? Very simple. Now, maybe you’re a dinosaur. You’re like, “Alberto, I can’t do a couple clicks of a button. I can’t do … That’s too complicated. I don’t even know how to email. I can’t do couple of clicks of a button and reach 8,400 people.” We’ve thought about you. We have a dinosaur hotline in our program. Here’s how it works. You pick up your phone. You’re probably doing the old rotary thing, right? You dial. It’s the dinosaur hotline. 8,400, bam, hang up the phone. You’re done. Can you do that?

Dial, rotary phone. 8,400. Bam. We have a dinosaur hotline set up for you. That’s how easy it is. And you have your 8,400 respondents. So that’s how easy it is. Now, with those 8,400, again, we work backwards, we have 42 appointments. Those 42 appointments, remember, we got to do them within a one-month time to create the 83,000 for the month. Now, we know that there’s 4.3 weeks in a month. 4.3. So that’s less than 10 … You do the math. 42 divided by 4.3? It’s less than 10. Well, let’s just say 10. You need to do 10 appointments in a week. 10 appointments in a week. Easy. Can you do 10 appointments a week? Most guys will do five appointments … Excuse me. To appointments in five days, running out of space here, getting a little messy. Two appointments, five days, right? You do a two appointments on Monday, two on Tuesday, two a Wednesday. At the end of the week, you’ve done it.

Now we have one of our members, Matthew, he decided to compress time again. He’s like, “I don’t want to work five days a week. I’m going to flip those numbers.” And that’s what he did. Instead of seeing two people five times a week, what Matthew does is, he only wants to work two days. He just flipped the numbers, and he does five appointments a day. Five appointments a day, two times a week. That’s 10 appointments, times four. There’s your 42 appointments. Bam. $83,000 a month. A million dollars a year. It’s that simple.

So guys, compression of time, again, very, very powerful concept. You can use this even for other sales. You can use it for other things in your business, but pause the movie, rewind it, figure out what your numbers are, and then work backwards. Figure out what you want to make. Maybe you want to turn your yearly income into a monthly income. It’s this simple. It’s that simple. And then you have to go out and get it done. I hope this helps. Alberto Riehl, Riehl’s Rants, compression of time. We’ll see you on the next video.