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Page 1 of 14The Hourglass Profit Model Joe the Window WasherThe Top of the Hourglass in ActionLeadGenerator ProfitDriver 1 - Get More Market Reach – Joe's business caters to high-end homes and businesses. Joe hasgrown his business nicely over the last year and now has the bandwidth to be able to expand outside of his current20 mile radius. He has identified an attractive market just five more miles north. This can increase his qualifiedpotential prospects, currently 10,000, by about 5%, or to 10,500.HOW can Joe Get More Potential Prospects? Increase geographic area he serves, as above. Increase the number of households marketed to by lowering the required household income (especiallyonce he learned to turbo-charge his overall client conversion, and therefore his cost per lead and clientacquisition). Increase the number of businesses he markets to now.Assuming all other ProfitDriver conversion rates remain the same, Joe can expect to increase the number of newcustomers by about 5%. I understand that this is a simplistic assumption and that there are many variables whichcould result in a different conversion rate. But assuming that Joe tested the market and verified that these 500 addedpotential prospects were in fact “like-kind” prospects to those he currently markets to, it's a reasonable assumption.ProfitDriver 2 – Get More Message Exposure – Currently Joe generates many of his high-end home ownerleads from his newspaper display ads. He also generates many of his business leads from his inside sales reps.Therefore, Joe has the opportunity to increase both of these lead generation channels in order to increase theexposure to his targeted prospects.HOW can he Increase his Marketing Message Exposure? 2009-2012 Business Growth Dynamics, Inc. All Rights reserved.

Page 2 of 14 Simply by looking for other publications that reach the same market and duplicating the ads placed. Joerealized that in addition to the Northwest newspaper, there also were local weekly publications within eachof his prime target high-end home markets.o So Joe can do a simple, inexpensive test to verify that these will generate additional leads at anaffordable cost. One of Joe's biggest challenges is the inability of his sales staff of three to call all the prospects oftenenough to utilize the power of repetition. After all, there are over 10,000 qualified prospects.o Therefore, one way Joe can increase his exposure to these prospects is by adding another sales rep.In fact, Joe can do this on a commission only basis, and his sales rep generates leads thatotherwise would have never happened. It's a win-win for everybody.o Of course Joe can utilize technology as well but we will save these discussions for future videos.ProfitDriver #3 – Get More LeadsOkay, so now Joe has OPTIMIZED and maximized the number he is marketing to, and the amount of exposure he isgetting to these qualified prospects. Now it's time to OPTIMIZE the response rates to his current marketingactivities.Joe currently gets about 4000 leads per year. So what does it take to get a 5% improvement, one extra lead per day!Perhaps Joe drives in leads with Direct Mail, PPC, Advertising – such as Newspaper, Radio, TV, or Live Events andTrade Shows; or Tele-Sales; Store Signage; JV's, Affiliates; Referrals; and/or Social Media.HOW can Joe increase leads 5%? Change his offer – Perhaps Free Gift just for meeting Change the positioning of his ad location in the publication, day, or even size of the ad Modify the timing of the marketing campaigns based on when consumers and businesses typically clean A/B Split Test different ads and elements of his marketing to find the highest conversion winning formula.So how’s Joe doing so far? We’ll, he has increased his annual leads from 4,000 to 4,200 or about 4 extra leads aweek. 2009-2012 Business Growth Dynamics, Inc. All Rights reserved.

Page 3 of 14Stacking Improvements CreatesEXPONENTIAL Revenue IncreasesThe Hourglass Profit System Client Generation Optimization3% increase in each step of the marketing and sales conversion processFirst 5 ProfitDrivers Current AnnualPerformanceJoe's Window Washing Service 1M / YearNew ProfitDriver #1Get More Leads400042005.0%5.0%ProfitDriver #2Get More Meaningful .6%1.6%25.8%15.0%25.8%ProfitDriver #3Get More Sales EngagementsProfitDriver #4Get More Proposal RequestsProfitDriver #5Get More Client ConversionsTotal Revenue IncreaseSalesEngager ProfitDriver #4 and 5 – Get More Meaningful CommunicationsNow Joe needs to have a conversation on the phone with these interested homeowners or businesses to learn moreabout their needs and communicate the unique benefits of using his services so they agree to take the next step in hisMarketing-Sales process. If he fails to do so then he loses this lead forever.Quite honestly, Joe really has never tracked profit driver metrics but he understands that even without the exactnumbers he can make measurable improvements, especially those that they have not worked on improving in theseareas before.CRITICAL DISTINCTION: Joe's realization is an important one. The fact, you were unaware of ALL yourProfitDrivers before this program. Therefore, now that you have identified these, many for the first time, there'sno way you could have metrics or tractable data available. But you do know key metrics that will help you to be ableto make reasonable guesstimates throughout the process. In the case of Joe, if he knew the number of leads andappointments he currently had then he could make some guesstimates as to the number of reaches and meaningfulcommunications.With that said Joe guesses that they are currently successful in REACHING about 70% of those that contacted himor responded to his marketing. Some called after hours, some went to voice mail when call volume was high, andsome responded via email and now Joe’s team must get them on the phone.And getting them to answer the phone is just the first step. In fact, even answering the phone call live is just the firststep. Now Joe's team must engage the prospect into a meaningful communication, which he is doing X% of the timecurrently. This is where they have the opportunity to qualify the prospect and educate them about the benefits ofdoing business with Joe’s Window Washing Service.So Joe's focus now is to increase the number of leads in which they effectively “Reach” and have a “MeaningfulCommunication” with by 3% each. 2009-2012 Business Growth Dynamics, Inc. All Rights reserved.

Page 4 of 14HOW can Joe increase the number that he Reaches and engages in Meaningful Communications? Answer more calls live (voice mail that requires them to chase down prospects) Improve follow up on emails received – speed, repetition and message (prospects may have called 2-3 otherWindow Washers) Leave a more compelling voice message (70% of outbound calls will be voice messages) Incorporate questions that engage the prospect Obtain better quality contact information.I will give you far more specifics in the SalesEngager module.ProfitDriver #6 – Get More Sales InteractionsNow Joe needs to motivate the prospects he has meaningful communications with to agree to an in personappointment at their home or business so he can evaluate the job and provide more details about his services. As youcan see, Joe is currently able to convince 60% to set an appointment with him. By improving this rate by just1.9%%, he now gets 61.9% to agree.IMPORTANT: Notice that Joe now is getting 231 additional appointments for zero added cost!!HOW can Joe increase the number of appointments? Change the appointment booking script Model his best rep and train others Add a compelling value-add incentive, Free Stain Removal Kit Improve the follow up when appointment was not booked Improve the number of appointments kept by sending reinforcing emailsProfitDriver #7 – Get More ProposalsOk, time for Joe to turn the prospects into paying clients. Joe runs through his Appointment to Proposal process andis currently getting 60% of those he meets with to agree to a written proposal. Now he will target 63%.HOW can Joe increase the number of proposals or quotes? Integrate his proposal into a laptop or tablet so he can generate and print right on the spot Strengthen their Presentation with powerful data that differentiates Joe Follow up email or letter after the appointment to reinforce benefits, followed by a callLet’s check in on Joe’s progress. We are only showing 5 of the 10 New Customer GenerationProfitDrivers to keep things simple. As you can see, he has increase the total Proposals by 22% (seeCumulative Increase column)! 2009-2012 Business Growth Dynamics, Inc. All Rights reserved.

Page 5 of 14Stacking Improvements CreatesEXPONENTIAL Revenue IncreasesThe Hourglass Profit System Client Generation Optimization3% increase in each step of the marketing and sales conversion processFirst 5 ProfitDrivers Current AnnualPerformanceJoe's Window Washing Service 1M / YearNew ProfitDriver #1Get More Leads400042005.0%5.0%ProfitDriver #2Get More Meaningful .6%1.6%25.8%15.0%25.8%ProfitDriver #3Get More Sales EngagementsProfitDriver #4Get More Proposal RequestsProfitDriver #5Get More Client ConversionsTotal Revenue IncreaseWe will cover the details of Getting More Proposals/Quotes in the SalesEngager module. We will also coverseveral other “sales steps” that may be used instead of getting the opportunity to provide a proposal.ConversionIgniter Ok, time for Joe to turn the prospect into a paying client. Joe is currently converting 30% of them now he willtarget 31.6%. Joe has three opportunities to increase the Ultimate Closing Rate:ProfitDriver #8 – Get More Initial Closes – Currently Joe’s sales reps follow up to review proposal, answerquestions, and close the deal. There may be a series of follow ups and back and forth communication required tofinally get the prospect to make a decision. In Joe’s case his Initial Close is likely a few weeks at most.HOW can Joe increase the Initial Close Rate? Change the offer by adding a bonus, perhaps free screen cleaning. Model best rep. The best rep at getting appointments may not be the best at closing. Strengthen the guarantee by offering a 30 Day No Streak Guarantee. Add term such as 3 Easy Payments. Add 2-3 more closes (one of my clients, Business Breakthrough International, a Chet Holmes, TonyRobbins company, has 7 CLOSES in their standard sales script! They have seen sales conversion rates goup 100% from this ONE tactic alone!!!)ProfitDriver #9 – Get More Follow up Closes – Prospects that were not ready to buy, but who eventuallypurchase due to diligent, systematic follow up. Perhaps the prospect decides to put off the purchase due to cost orother issues. Or perhaps they buy from a competitor THIS TIME. Either way, diligent, long term follow up canresult in extra sales.HOW can Joe increase Follow Up Close Rate? Joe can call or email prospect in 30 days to see how the cleaning went with the other company (powerful,especially if the other company never called). 2009-2012 Business Growth Dynamics, Inc. All Rights reserved.