Why Clients Need To Earn 1000 X MLE

Chris, you mentioned thatif a CEO is speaking to you,they probably cannot afford you.Yes, most likely.It's a great passto my question.If you.It's a really short one.So OK, let me look atyour question again.So are you wasting timewith a client that can't.Well, count grows1,000 times, my Emily.Ok?would you guysneed to understand,is this OK if a companydoes a million of business,10% of that usually isearmarked for marketing.Most businesseshave forecasting,and they alreadyknow what they'regoing to spend formarketing next year.Now, marketing also includestheir staff, the ad by boostingads, paid media, the productioncost, the creative costsand all these kinds ofthings, and it coversa campaign for the entire year.So you take that million, youchop down to 100 thousand,you chop that down to1,000 little pieces.And before you know it,you're left with 1,000.So if your email is 10 thousand,you have to go backwards.And we already figuredout the formula.If they can't afford orgross 1,000 times your MLI,they're not grossing thatthey cannot afford you.And we did the simple math.We talked to a company that did$60 million of business a yearlocal business.They manufacture something.They're good company.They cannot afford us.When we put out pricetag, they choked on it.So that's when Icame back and waslike, if they don't domore than $100 million,there's no waythey can afford us.So we just reverseengineered it.Now you're going to bein this place, did me,where you're still tryingto find your first client,so you're going to bea lot more flexibleand it's not going to matterthat much because you justneed to get a winunder your belt.You need to get someexperience behind youand you do what you need to do.OK, pretty much.I'm asking if I'm bangingmy head against the wallbecause I think thatright now I don't have.So I have zero clients.All the work I'vedone is a freebie job.So pretty much.I'm not sure.I'm perhaps it'sa mindset thing,but I'm not sure I can go todecline that gross two million,for example.Well, I think that alocal restaurant thatgrosses 500 thousand,which is stilla quarter of myEmily times 1,000might still be agood fit for me.OK, let me give youthis short because we'rerunning along on time here.The short of this, I talkedto my financial advisor.He said, Chris, shouldI refer you to clients?I would love that,and he's like, well,how much should I tellhim, so I gave himsome guidelines on that.It goes, that's interesting.So you think they need tohave 1,000 times your thing?And I said, yeah, I think so.It goes well, I don'twant you to rule outcertain kinds of companies.Some companies spend 50%of their gross revenueon marketing alone.Companies that arehighly undifferentiatedspend a ton ofmoney on marketing.Credit card companies,soda companies.Water companies.They rely heavily onmarketing to differentiatea lot of fashionbrands do this as well.They buy a lot of ads, sothat's all you have to do.So you can say like, you know,those prepaid phone cards.Absolute commodity,no differentiation.They're probably going to spendmore on design and marketing.So if you're in acommodity space,those companies will spendmore so your calculationcan be a littlebit lower, right?But let's forget about all thesemalls and the size of clientsand how you feel about them.Just walk in the room.It's like, you know what?Whatever you ask them todo, you ask me to take outthe trash is going to be 2000.If you want me to assignyou an identity system,it's going to be $2000because I can't do anythingfor less than this.I only have room in myclient roster for 10 clients.I want to servicethem really well.OK, let's say you have14 clients right now,and quite a few of themdon't even meet your MLA.The tip that Blairgives is chop the onesat the bottom to makeroom for the oneson top of the onesyou have already.So trim a few off the bottom.Take your lowest paying clients.Say goodbye to them.Send them to somebody else inthe group who's just gettingstarted.Send them to me if youhave a couple of grandto do something, I'm surehe could do somethingand it'd be great.Make room for some people on thetop and sell to those people.So you're going to go to thisconstant process of filteringout lower paying clientsfor higher paying clientsas you level up.OK