Formula Five 5 Review Paul Lemberg & StomperNet

StomperNet and Paul Lemberg (of Quantum/Axcelus Business Coaching) have joined forces to release a profit improvement  program for businesses called Formula Five (affiliate link) -or is that Formula 5? - and this blog is my very detailed Formula Five Review.

Let's start with the response from the StomperNet beta testers who have been working with Formula Five for a couple of months.

Just sign up at this link and then you will receive Paul Lemberg's video introducing Formula Five directly from StomperNet but first watch the 32 minute video from Andy Jenkins which doesn't require any sign up. [A few days later a pdf transcript (affiliate link) of both was released for download for people who prefer to read.] 

The Paul Lemberg Formula Five video is 73 minutes long and is excellent.

When you watch it, Paul shows you the amazing impact price changes have on your profits.

I have prepared a simple Excel spreadsheet for you to try different numbers based on Paul's example.

Download Formula_Five_Dynamics

I have also written a version which allows you to customise the example so you change from looking at the impact of prices changes in a fictional business to what could happen in your business if you implement the ideas from Formula Five.

You can get this version by signing up here

Name:

Email:

You just set new values for the primary profit drivers based on what you think may happen and the spreadsheet calculates a new Profit & Loss account and break even point based on your assumptions.

Who Is Stompernet Formula Five For?

Formula Five is a coaching program for existing businesses that want to make more money put together by one of the most successful business coaches in the world - Paul Lemberg.

He has used the Formula Five system with businesses ranging from a $80,000 sales a year to $42 million and other clients have included  

"But Paul, isn't that what you do?" I hear you ask.

"Yes it is but I restrict my activities to the UK where there are already far more companies than I could ever deal with."

Who Shouldn't Buy Stomper Formula Five?

First, if you won't move from learning to taking action, don't bother with Formula Five. Just give it a miss and save your money.

One of my mentors, Mitch Axelrod has a saying "Imperfect action beats perfect action every time".

Another, Peter Thomson says "Action is the key".

This is one reason why I warn people to be wary about information overload and chasing launch bonuses. It is much better to focus and concentrate on the main program, learning what you need and then start taking action and seeing the success for yourself.

Second, if you don't yet have a business but you want to start one or your business is in the very early start-up phase, then I recommend that you let this offer pass by at this stage.

You have other, more important priorities like researching market opportunities, finding out what customers want and attracting your first customers.

Whilst this may be a typical internet launch with a short window of opportunity to buy, I can't see any reason why the window won't appear regularly - possibly several times a year.

What Is Stomper Formula Five?

The clue is in the title.

It is a 15 week coaching program that comes in five stages.

• Formula 5 Step 1 - Increase your margins - the margin magnifier
   
  
• Formula 5 Step 2 - Increase how much your customers buy - the sales stackers
   
  
• Formula 5 Step 3 - Increasing the number of leads for your business - the lead landslide - not SEO or PPC
   
  
• Formula 5 Step 4 - Maximize your customer conversions - conversion control
   
  
• Formula 5 Step 5 - The magic secrets which multiply the impact and success of the other items in the Formula Five - the turbo thruster - by increasing your productivity.
  

Every three weeks a new Formula Five module is delivered on DVD with printed transcripts and worksheets.

I like this idea of rationing the training material because it stops you from being overwhelmed at the beginning but gives you a focused period to think "I need to get through this first module in the next three weeks."

Remember you make extra profit because you take the right actions.

Read enough? Want to see the quality for Formula Five (affiliate link) for yourself?

More Details On Formula 5 Soon

I will let you know my thoughts as I review Formula Five since StomperNet have sent review copies to their top affiliates.

Formula Five is based on a fairly standard business coaching model which can be traced back to Jay Abraham's three ways to grow a business model (customers, average spend, number of transactions) and the principles of optimisation and geometric or exponential growth but don't think that is a disparaging comment.

I am a massive fan of Jay Abraham style thinking and his ideas have created uncounted billions of extra profits over the years and form the basis for most of the serious business coaching industry.

My Formula Five Box Has Arrived

It has taken longer than I had hoped but the box was delivered in the snow this morning (January 5th).

Several of the videos below in "What Other People Say" show the box being opened so you know that it looks good as the presentation is top quality.

I have been sent the first module and the next four modules will also fit in the same presentation box/folder. This is not a product which is going to fill an entire shelf.

The Objective Of Formula Five

I quote from the "Welcome to Formula Five" sheet, the aim is "to help you increase your business' revenue and profit faster than ever before, without you having to learn a ton of new skills, and without having to do a lot of extra work."

Before looking at the first module for Formula Five, I want to warn you about your biggest danger and which holds back thousands of businesses from implementing profitable ideas for improvement.

It costs many small business owners a fortune in missed opportunities for extra profit.

Formula Five takes advantage of what Paul Lemberg calls compounding because improvements in a business build upon each other.

The idea is that you will learn how to improve your business profit by at least 15% because of each of these areas which compounds to a 101% growth in your profit over the program and much more if you target your growth at the gross profit level before overheads (SG&A).

Your Most Dangerous Thought When Reading This Formula Five Review

Just four little words...

"I already know that."

It stops you dead in your tracks with no way forward.

You see there is an enormous difference between:

1. Knowing in theory about a profit improvement idea.
    
   
2. Knowing in enough detail to put the idea into action.
    
   It is the difference between "what to do" and "how to do it".
    
   I may know that my car needs a particular repair but I don't have a clue how to do it.
    
   
3. But then there is an even bigger gap between "knowing what to do" and "taking action"
   
   I know how to decorate the kitchen but I haven't done it yet.
   

So please don't think "I already know that" but instead ask "Am I doing that to its maximum advantage in my business?"

Ready to download the Formula Five (affiliate link) video to watch for yourself?

Formula Five Module 1 - Margin Magnifier

Basic problem - most businesses under-price their products and services which means that their margins are lower than they should be and they make much less profit than they could. This happens because they fear competitive pressure on price because they have not effectively identified and communicated their unique (and superior) value proposition.

The hidden profit opportunity is to increase prices, increase margins and make much more money but only if you accept the idea that you don't know much about just about the most important decision you make - your selling prices.

The Margin Magnifier module has the following videos (also available as a transcript)

1. Margin Magnifier introduction
    
   
2. Superior value position
    
   
3. Your offer
    
   
4. Demonstrate return
    
   
5. Build value case
    
   
6. Valuizing (yes that is the word and it means turning the concept of value into hard numbers)
    
   
7. Return
    
   
8. Proof
    
   
9. Pricing research
    
   
10. Pricing strategies
     
    
11. The margin question part 1 (an explanation of margin and the start of how to calculate the break even point)
     
    
12. The margin question part 2 (finishes the calculation of break even and then runs through a number of examples of what happens to your profit, if prices increase or reduce).
     
    
13. Why you price too low.
     
    
14. How to raise prices
     
    
15. [Are your prices] too low or too high?
     
    
16. Random pricing questions

Paul Lemberg presents everything very calmly and clearly in the videos (about 4.5 hours in total for this first module of Formula Five) and you can watch the Powerpoint style presentation on the screen or read along with the transcript.

This module covers what for me would be some of my basic finance coaching together with hidden profit modules for USP (unique selling proposition) and pricing as it looks at both the value you provide - and how you communicate it - together with the price you charge.

I generally encourage my clients to increase their prices based on the value they provide and for service businesses in particular, it is a very quick way to increase profit.

All of the contents in this first module of Formula Five is relevant to any kind of business - online of offline - and Paul Lemberg has put together a very good framework to challenge your current view on your pricing and then to change it.

Some of the videos will be a bit too number-crunching for the comfort of some business owners but the concepts are essential. Whilst painful to watch as many times as you need to understand, you will be very grateful when you finally see the light and understand your cost - price - volume - profit relationship.

I also found myself thinking that I would have put things in quite this way in some places but this is very much playing to my strengths and what I do for a living.

Later videos on "why you price too low", "how to increase prices" and "[are your prices] too low or too high" are particularly good. I would have introduced the first of these earlier myself to help break any "we are in a recession and can't increase prices" mindset.

I have a simple mantra - can do, will do, have done.

The Margin Magnifier shows you how to increase prices and margins and the profit examples give you the motivation to take action.

This is a great start to Formula Five.

One resource which covers some of the same ground as this first module as Formula Five in terms of your basic value proposition is Mark Joyner's book The Irresistible Offer (affiliate link - currently available as a free download) which makes a very useful supplementary text.

Formula Five Review Continued

I have a lot to say about Formula Five and believe that I can write the most definitive review on the Internet because of my experience and knowledge of business coaching techniques.

The Formula Five Review continues with Sales Stackers - a combination of some of my  particularly favourite profit enhancement techniques at Formula Five Review Part 2

If you haven't downloaded your video of Paul Lemberg and watched it, you might want to do that before reading more - see Formula Five video (affiliate link) - and sign up. The Andy Jenkins video on this page is good, Paul Lemberg's which you only get if you sign up is better and gives you more of the flavour for Formula Five.

Formula 5 Review - Module 3 - Lead Landslide - outline

Formula 5 Review - Module 4 - Conversion Control - outline

Formula 5 Review - Module 5 - Turbo Thrusters - speculation

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Comments

[Raymond Chua]

I always love Andy's video production style and of course the rock solid content too.

[Paul Simister]

StomperNet have opened up their full membership training at a very special price on 09-09-09.

Great freeline content is promised so do take a look at

http://www.stomper-999.com