From: alexhormozi
The Sales to Fulfillment Continuum is a concept that generally states: the easier something is to sell, the harder it is to fulfill [00:15:41]. Conversely, if something is very hard to sell (e.g., “you have to do it all yourself”), it is typically very easy to deliver on [00:16:03].
Exceptions
The main exception to this general rule is technology [00:15:48]. However, for services, the principle usually holds: an offer that promises to “do everything for you” is easy to sell but hard to deliver [00:15:53].
The “Done For You,” “Done With You,” “Do It Yourself” Pyramid
When considering a new product or service, the recommended approach is to follow what is called the “Tesla Model” – starting at the top of the pyramid with the most expensive offering first [00:16:47]. This strategy integrates with the principle of scaling the unscalable [00:20:09].
1. Done For You (Top of the Pyramid)
- Characteristics: This is the most expensive offering, where the business handles everything for the client [00:16:50].
- Sales & Fulfillment: Very easy to sell, but very hard to fulfill [00:16:54].
- Benefits:
- Maximizes revenue per customer, especially when starting out with limited lead flow [00:17:00].
- Allows for the highest percentage of people to achieve the best results, building strong customer testimonials [00:17:08].
- Develops Standard Operating Procedures (SOPs) and identifies core products, which are crucial for later productizing the service [00:17:18]. For example, an agency doing “done for you” will create SOPs for lead magnets, ads, landing pages, and email follow-ups [00:17:34].
- Establishes strong brand positioning and price anchoring for the most expensive version of the service [00:18:22].
- Scaling: More difficult to scale, but acceptable in the initial phase when customer numbers are low [00:17:12]. Engaging in one-on-one calls and hands-on work with customers in the beginning is essential for learning and improving the product and offer [00:05:31]. This “unscalable” effort provides valuable insights into pain points, effective messaging, and what customers truly value [00:05:36].
2. Done With You (Middle Tier)
- Characteristics: After developing SOPs from the “done for you” phase, the business transitions to a “done with you” model, where they assist the client in doing the work themselves [00:17:49]. This shifts from a service provider to a consulting relationship [00:18:03].
- Sales & Fulfillment: Can be sold at a fraction of the “done for you” price (e.g., a third or fifth) [00:17:53]. The service is largely productized, requiring less direct handholding [00:18:00].
- Scaling: Allows for selling to many more people (e.g., 10 times the amount of people) due to reduced support requirements [00:19:00]. This is a step towards scaling the service from one-on-one interactions to semi-private or group settings [00:07:19].
3. Do It Yourself (Bottom of the Pyramid)
- Characteristics: The most accessible and lowest-priced tier, providing clients with SOPs and resources to perform the work entirely on their own [00:19:17].
- Sales & Fulfillment: Typically one-tenth or one-third the price of “done with you” [00:19:22]. It’s harder to sell at this level due to minimal direct involvement [00:16:05].
- Scaling: Offers the highest scalability, as it leverages the codified knowledge from the earlier stages [00:19:17].
Why the Top-Down Approach?
The top-down approach (starting with “done for you”) is preferred because:
- It incurs the least operational drag at the start due to fewer customers [00:19:46].
- It allows the business owner to deeply understand the customer, their problems, and effective messaging [00:03:55], which improves sales skill [00:19:58].
- It facilitates the creation of robust systems and training material that can then be used to scale down to less personalized, higher-volume offerings [00:09:41].
- It enables a small business to leverage its unique advantage of providing highly personalized, initially “unscalable” services to outcompete larger, less agile competitors [00:14:33].
This approach ensures that a business learns more than it earns in the beginning, fast-tracking its education on the customer and the problems it solves [00:08:05]. It emphasizes prioritizing efficiency per lead and pulling out “all the stops” when starting small [00:12:50]. This perspective is a core principle in entrepreneurship, promoting proactive engagement in seemingly “unscalable” tasks to build a foundation for future growth [00:02:53].