How It Works

January 24, 20268 min read

# How It Works

The Co-Op Business Club operates on a foundation of proven marketing frameworks, AI automation, and community support. This page explains the core systems that make the Co-Op function.

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## The P.A.S.S. Framework

Everything in the Co-Op is built on Daniel Morel's P.A.S.S. Marketing Framework:

### P - Prospect

Share the member's Power Offer to audiences in every way possible based on tier and budget.

What happens:

- AI agent creates member's Power Offer during onboarding (using Joel Erway framework)

- Power Offer becomes cornerstone messaging for Local Hero Funnel

- Distribution across channels: Social (X AND Meta AND others), Google, email, SMS, direct mail

- First principles approach: We don't choose OR, we choose AND (based on tier capacity)

- Starter tier: Core digital channels

- Growth tier: Expanded multi-channel

- Regional tier: ALL channels including EDDM (Every Door Direct Mail)

The Power Offer:

A 1-2 sentence direct offer targeting ready buyers who need to solve a costly problem. Created by AI, deployed automatically, continuously tested by Marvin AI.

Example Power Offer format:

> "Attention [TARGET AUDIENCE]. If I offered to [SOLVE COSTLY PROBLEM] without [COMMON OBJECTION]... [PROOF]. Would you take me up on that offer?"

### A - Acquire

Receive permission to engage in conversation and have Marvin AI qualify and introduce to appropriate member(s).

What happens:

- Leads respond to Power Offer (form fill, chat, call, message)

- Permission granted to continue conversation

- Marvin AI begins NEPQ-style qualification (via chat/email/SMS)

- The Pulse tracks all leads across entire chapter

- Cross-selling activated: Marvin AI introduces leads to appropriate member(s) based on need

- Example: Lead needs plumbing AND HVAC → routed to both members

- No fees for cross-member introductions (builds Co-Op ecosystem value)

### S - Sell

Use NEPQ framework to help leads and prospects find their best fit in the value ladder.

What happens:

- Marvin AI acts as closer using NEPQ (Neuro-Emotional Persuasion Questioning)

- NEPQ = Jeremy Miner's 7th Level methodology: problem finding, not product pushing

- Marvin AI asks strategic questions via chat/email/SMS to help prospects persuade themselves

The 6 NEPQ Question Types:

1. Connection - Build rapport and trust

2. Situation - Understand current state

3. Problem Awareness - Help prospect identify pain

4. Solution Awareness - Help prospect see solutions

5. Consequence - Help prospect understand cost of inaction

6. Commitment - Guide prospect to their own decision

Two value ladders working simultaneously:

- Member's ladder: Prospect → their service tiers (e.g., dentist: checkup → cleaning → treatment → cosmetic)

- Co-Op ladder: Newsletter → Personal → Starter → Growth → Agency (for prospects who want to join Co-Op)

Marvin AI guides leads to best fit in whichever ladder is appropriate.

### S - Support

Provide the best service automation can provide to turn prospects into clients and then brand ambassadors.

What happens:

- Automated follow-up sequences

- Review and testimonial requests

- Referral generation systems

- Loyalty and retention workflows

- Turn satisfied clients into vocal advocates for both the member AND the Co-Op

Goal: Prospects → Clients → Brand Ambassadors

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## The Local Hero Funnel

The Local Hero Funnel is Daniel Morel's P.A.S.S. Framework wrapped in The Pulse and managed by Marvin AI, with the member's Power Offer as the cornerstone messaging.

### What It Does:

- Automates the entire P.A.S.S. cycle for local service businesses

- Runs 24/7 without constant human intervention

- Adapts based on real-time performance data from The Pulse

- Scales with membership tier (Starter → Growth → Agency)

- Uses top systems and GHL snapshots (selected by AI as needed)

### Components:

#### 1. The Funnel (P.A.S.S. in Action)

- Power Offer as core messaging (created during onboarding)

- Landing pages and lead magnets (Prospect)

- Forms and chat automation (Acquire)

- Sales sequences and booking systems (Sell)

- Follow-up and review requests (Support)

#### 2. The Pulse (Monitoring & Routing System)

- Tracks funnel performance in real-time

- Monitors lead flow, conversion rates, and ROI

- Identifies bottlenecks and opportunities

- Feeds data to Marvin AI for optimization

- Manages all chapter leads for cross-selling (routes to appropriate members)

#### 3. Marvin AI (The Manager & Closer)

- Runs the entire Local Hero Funnel

- Makes optimization decisions automatically

- Adjusts messaging, timing, and sequences

- Acts as closer using NEPQ methodology (asks strategic questions via chat/email/SMS)

- Handles lead nurture, qualification, and routing

- Minimal human interaction required

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## How Members Experience It

### Day 1: Onboarding

1. Join at your chosen tier

2. Complete onboarding interview with AI agent

3. AI creates your Power Offer (using Joel Erway framework)

4. AI analyzes your business, market, and value ladder

5. Local Hero Funnel customized to your business

### Week 1: Launch

1. Power Offer deployed as cornerstone messaging

2. Funnel goes live in your market

3. The Pulse begins monitoring

4. Marvin AI starts managing automation

5. You receive dashboard access

6. Member has minimal input past onboarding (AI handles deployment)

### Ongoing: Automation

1. Leads flow in automatically from multi-channel distribution

2. Marvin AI qualifies using NEPQ questioning (via chat/email/SMS)

3. The Pulse routes leads to you AND cross-sells to other members as needed

4. You receive hot leads ready to close

5. The Pulse reports performance

6. Marvin AI continuously split-tests and optimizes Power Offer and funnel

7. System improves itself without human intervention

### Monthly: Strategy Check-In (Optional)

- Review Pulse data

- Adjust strategy if needed

- Scale up (upgrade tier) when ready

- Minimal time investment required

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## Marvin AI Explained

Marvin AI is the intelligence that powers the Local Hero Funnel and acts as the AI closer.

### What Marvin Does:

- Manages campaigns - Runs your marketing without you touching it

- Acts as closer - Uses NEPQ (Neuro-Emotional Persuasion Questioning) to qualify leads via chat/email/SMS

- Nurtures leads - Sends the right message at the right time

- Qualifies prospects - Identifies who's ready to buy using strategic questioning

- Routes intelligently - Works with The Pulse to cross-sell to appropriate members

- Optimizes performance - Continuously split-tests Power Offers, messaging, and sequences

- Reports results - Summarizes what's working via The Pulse

### The NEPQ Closer:

Marvin AI literally asks NEPQ-style questions to help prospects persuade themselves:

- Connection questions - Build rapport

- Situation questions - Understand current state

- Problem awareness questions - Help them identify pain

- Solution awareness questions - Show possible solutions

- Consequence questions - Cost of inaction

- Commitment questions - Guide to decision

Philosophy: Problem finder and solver, not product pusher (Jeremy Miner's 7th Level methodology)

### What Marvin Doesn't Do:

- Replace human relationships (you still close high-touch deals when needed)

- Make strategic business decisions (you set direction)

- Run your entire business (it's a marketing tool)

### AI-Powered = Minimal Human Interaction

Traditional marketing agencies require:

- Weekly calls

- Constant revisions

- Manual campaign management

- Hands-on optimization

With Marvin AI:

- Member has minimal input past onboarding

- AI creates and deploys Power Offer

- AI handles 95% of execution

- Monthly check-ins optional

- You focus on delivery and service

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## The Technology Stack

### Built on GoHighLevel (GHL)

The Co-Op runs on GHL, an all-in-one marketing platform providing:

- CRM and contact management

- Funnel and website builders

- Email and SMS automation

- Calendars and booking systems

- Reporting and analytics

### Why GHL?

- White-label capable (Co-Op branded)

- All tools in one platform

- No need to stitch together multiple services

- Cost-effective at scale

- AI-integration ready

### Member Access:

- Starter/Growth members: Access to their dashboard and funnel

- Agency members: Full GHL sub-account for chapter management

- All members: The Pulse reporting interface

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## How Chapters Work

### Structure:

```

National Network

└── Regional Leadership (future)

└── Local Chapters

└── Main Ambassador (Agency Member)

└── Chapter Members (Starter, Growth, Personal, Newsletter)

```

### Chapter Operations:

Main Ambassador Responsibilities:

1. Lead generation for chapter growth

2. Host monthly chapter events

3. Support member success

4. Maintain Co-Op standards

5. Earn 20% revenue share from members

Member Experience:

1. Join local chapter

2. Get access to national network

3. Attend local events (optional)

4. Receive marketing systems

5. Participate in community

### Why This Model Works:

- Local relationships build trust

- National resources provide scale

- Ambassador incentives align with member success

- Cooperative structure removes profit extraction

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## Revenue Flow

### Member Pays → Co-Op Distributes

Example: Growth Member at $1,970/month

- $1,576 (80%) → Co-Op operations (systems, support, infrastructure)

- $394 (20%) → Main Ambassador (chapter leader)

This ensures:

- Co-Op has resources to deliver value

- Ambassadors profit from chapter growth

- No external shareholders extracting profit

- Incentives aligned with member success

---

## Success Metrics

### What "Working" Looks Like:

For Members:

- Consistent lead flow

- Measurable ROI on membership

- Time saved vs. DIY marketing

- Community connections and referrals

For Ambassadors:

- Growing chapter membership

- Passive income from revenue share

- Strong local business reputation

- Sustainable chapter operations

For The Co-Op:

- Member retention (low churn)

- Chapter expansion

- System improvement over time

- National network growth

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## What Makes This Different

### Traditional Agency Model:

- You pay $3k-10k/month

- Agency does the work

- You hope for results

- High churn, low trust

### The Co-Op Model:

- You pay $197-$1,970/month (most members)

- AI does the work

- The Pulse proves results

- Community membership, long-term partnership

### Key Difference:

You're not buying a service. You're joining a cooperative that makes you wealthy.

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## Getting Started

1. Choose your tier - See [Membership Tiers](https://wiki.coopbusinessclub.com/post/membership-tiers)

2. Join your chapter - Find your local Main Ambassador

3. Complete onboarding - Let AI build your funnel

4. Go live - Marvin AI starts working

5. Grow - Scale up as results compound

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## Related Pages

- [Membership Tiers](https://wiki.coopbusinessclub.com/post/membership-tiers)

- [What is the Co-Op?](https://wiki.coopbusinessclub.com/post/what-is-the-coop)

- [Wiki Home](https://wiki.coopbusinessclub.com/post/home)

Marvin writes for Daniel Morel, founder of the Co-Op Business Club. Together, they explore bold strategies for building predictable growth through community-driven campaigns, AI systems, and cooperative partnerships. Daniel’s mission is to empower small businesses worldwide with smarter, simpler, and more profitable ways to scale.

Marvin for Daniel Morel

Marvin writes for Daniel Morel, founder of the Co-Op Business Club. Together, they explore bold strategies for building predictable growth through community-driven campaigns, AI systems, and cooperative partnerships. Daniel’s mission is to empower small businesses worldwide with smarter, simpler, and more profitable ways to scale.

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