Transcript
00:00:00what did you get it i have no but i have the three okay um but what's interesting is that
00:00:06the difference between 29 for all three books and 12 for all three books was a 4x difference in
00:00:15conversions 4x and so there are these these lines where you're like at 48 hours it feels reasonable
00:00:24so it's like where's the line where it feels unreasonable and at that unreasonable line
00:00:28right as you tease into it is where you'll start you'll see this kind of change in demand that will
00:00:32happen and then we just do math it's kind of like having an unconditional guarantee knowing that
00:00:37you're going to have 10 or 20 more people buy and more refunds but you'll still net more right now
00:00:44it's not one-to-one in terms of the example but hopefully the analogy makes sense which is like
00:00:47if we if we say we're willing to give 20 back right um if we don't get it you know done in 24 hours then
00:00:57we might get five times the demand and so i would experiment with one number one is difference in
00:01:03creative like i'd use a lot of statics if you haven't done that because that might be an easy
00:01:07one easier one for you um but two the biggest one especially local is offer driven
00:01:15so it's like a 24-hour promise it's like from the time you basically give us like
00:01:20you pass like the stuff will be out of your house in 24 hours okay that's the idea um like how can we
00:01:27just like speed is going to be the biggest thing you have um obviously you have a little bit of risk
00:01:30with the guys uh not being you know ex-cons and stealing stuff or you know destroying the house or
00:01:34whatever again i don't actually think that but you know consumer perception um those should probably
00:01:40be where i would focus on as my point of greatest leverage okay cool appreciate you yeah you bet
00:01:48ryan what's up alex thanks so much for having me on really appreciate your time i've been watching your
00:01:54content for about seven months now it's changed my life so i just wanted to thank you for that everything
00:01:59you've done um give me more time to spend with my family my daughter so uh about myself though i run a
00:02:05multi-state online psychiatry practice for about seven years uh we provide medication management i have
00:02:10seven providers about 1.5 million in revenue looking to get to 5 million in the next 12 months
00:02:16uh i've got three constraints stacked and i can't tell which one to break first okay my first constraint
00:02:23is demand that's the most immediate one comes all of my uh revenue about 85 percent of it comes
00:02:29from a single channel i've been doing the same thing for seven years essentially i've maxed out on what i
00:02:34can do on that channel i'm got seven providers billing about 20 to 25 hours per week which they're
00:02:41committed to but i'm running into constraints where i don't have uh enough billable hours where all their
00:02:47availability isn't getting full yeah my second constraint is margin so i pay my nurse practitioners
00:02:5350 of what they collect so that lands the np right around market salary
00:02:59yeah you can't go any lower on the split without losing them uh if i move to hourly or salary that
00:03:04puts me into cash flow constraints yeah so that's risky okay one one point three percent is my
00:03:10net margin so if my problem is if i scale from seven to 20 i grow revenue but i don't necessarily
00:03:17grow profit and then my third constraint is onboarding so we take insurance about uh 89 it comes from
00:03:24insurance 11 from cash uh i've about hit the ceiling as far as the credentialing goes as fast as we can
00:03:32do the onboarding so that kind of caps a little bit how fast it can add people because it takes about
00:03:37three to four months so my question to you is what would you address first and why so it's a holistic
00:03:44issue so instead of saying like there's three constraints i think the issue is fundamentally
00:03:48you have a model that has a channel the insurance companies right who define your pricing
00:03:57and so if you're in the insurance business it's kind of like a regulated industry it's like functionally
00:04:03right it's like you have a price cap and so the only way to win in those industries is that you have to
00:04:08you have to eat it from the bottom which means it's all cost driven so it's like unfortunately you have
00:04:14to think about your business like walmart which is like we actually have to save every single penny
00:04:17because demand shouldn't be an issue for the business because you should have enough insurance clients
00:04:24that you always are filled up but like this is a very classic problem for insurance-based healthcare
00:04:29is that they have revenue they have almost no margin and that's because insurance prices at the point of
00:04:36a normal operator barely making enough like that's that's where they price they continue to lower it
00:04:42until people go out of business and then they don't have enough so they have to like price you right
00:04:45where right where they you know right where they know that you're going to barely stay alive
00:04:49and so uh you basically have two you have one choice to make and then there's downstream from that which
00:04:55is if you want to stay insurance you become you become a pure operator it's all about driving down costs
00:05:02everywhere and the biggest lever you have is you have nps right is there any other
00:05:08person or way that we like like the novelty of the model right now the problem with the models are
00:05:12you're giving 50 of all your revenue to to to labor which is really tough um and so we'd we'd want that
00:05:20cost to be closer to like 20 of the cost of insurance and so it's like is there a way that we can
00:05:28move people through faster so we can get more you know more out of each either np or is there another
00:05:33person who's not an np that can still do the job um that's on the cost driven side the other side is
00:05:40you just turn into a normal business which is just cash and then you just learn and then you can sell
00:05:44whatever you want right and then you have you have no rules um which one of those feels more like
00:05:50align with your skill set i would say both well we got to pick one well if i were to pick one i would
00:05:57say uh we've already maxed out efficiency to talk out loud i've got a i built my own software program
00:06:03we've got 99 collection rates from insurance very low stuff sitting out there two months sitting out in
00:06:09ar so i feel like i've maximized a lot of the efficiency i have very low staffing costs i've outsourced
00:06:15that so it's got to be going to a cash pay base rate because we know insurance rates are going up
00:06:21and so it would be going down well the cost of of getting i mean for the patients is going up the
00:06:28insurance rates are going up about 11 to 13 a year so are you getting paid more 11 to 13 a year
00:06:35patients are paying more in premiums and their benefits are going down which means they have to pay
00:06:40more out of pocket meaning their costs are less predictable so give people so i i was thinking go
00:06:45to a subscription-based cash-based uh where people have predictability and start cutting out the
00:06:51insurance a hybrid approach where people can use their insurance but then do subscription-based yeah
00:06:56the the the bridge from where you're at to cash um is less risky than you think it is
00:07:03um so the way that you would the way that i would do this is that you're going to have this flow of
00:07:08insurance customers right in the sales process i would ask one sorting question up front which is
00:07:15are you here for the best thing or you're here for just what insurance covers and just by asking that
00:07:22question you will unlock the people who are willing to spend more to get the thing they need and then
00:07:27that basically opens the door to selling cash services and say look listen we'll bill your insurance to
00:07:32everything that it can cover but this would be the excess and then just making that one change in your
00:07:37business you've got you know one and a half percent margins like if we add 10 or 20 percent to the
00:07:41business it would 10x your your profit absolutely what i'm seeing is there needs to be something we
00:07:46offer that other people don't that they see the value inherently right for this and so what i really
00:07:52see is i see the problems every day you know i've been doing this for about 15 years now so i know
00:07:57i know what the problems are and a lot of it is is people just aren't don't feel fulfilled they go into
00:08:01psychiatry they hit a plateau they get the medications and then they kind of level off
00:08:05right yeah and so i'm thinking how can i integrate uh ai into this and that's what i've been building
00:08:10out as a solution to this where we can integrate what they're doing with the therapist with what
00:08:14they're doing with us have them hit one or two outcomes every time they meet with us add in more
00:08:19or less a coaching component to this where the health care provider is kind of meeting the needs
00:08:24where they go to the therapist and they go to us for the medications and then we have a coaching component
00:08:28that coaching component is in fact the app where we can now solve that communication problem between
00:08:33the medical provider the therapist because right now it's very siloed in health care they go to the
00:08:38therapist they go to us for medication management and that's kind of across the board because if we
00:08:42could solve that problem so that's what i've been spending a lot of my time and energy on is putting
00:08:47that into something that the patient will be able to to use so imagine they see us they pick one or two
00:08:52outcomes what is it that what is your what do you want essentially how can we best help you what does that look
00:08:58like they see the therapist the therapist gets to see what their outcomes are and essentially we can
00:09:03bridge between the therapist and us which then pulls the therapist in to refer more patients and
00:09:08then we can essentially cross refer between online therapy practices and uh so if we can get more i'm not
00:09:13sure what the ai thing does what's well i would look at it really simply as the patient has an outcome
00:09:20they don't know what they want they're focused on symptoms these are my problems but what they really
00:09:25want is they want to you know have a better life they want to feel fulfilled they want you know
00:09:30there's things that people want right but they're so focused on just overcoming these symptoms what
00:09:34does the ai do i would see it as helping them uh they quite simply they see us and we'd love the
00:09:42provider logs their outcomes of what they want and then here are one or two easy things that you're
00:09:46going to do for 10 or 15 minutes a day to get there what does the ai do it solves the communication
00:09:52barrier let me say differently does do they chat with it do they text it do like what is it like
00:09:57what are they how are they interacting with this thing yeah exactly okay got it so it's the uh the
00:10:03provider that interfaces with it puts the information and the patient just gets the information as a care
00:10:07plan which then goes to the therapist so it's basically a stream okay form of communication so it sounds like
00:10:13you just want to make ai plans and then sell them care plans on top of their medication stuff
00:10:22i would add in other value added things like videos and things that are proven strategies that are really
00:10:27going to help people be on medications to help them get better as part of a subscription so they get
00:10:31that information after the visit as a care plan information tailored to them what's the subscription like
00:10:37why is it consumable because i'm going to get a plan right yeah so why do i need to get another plan
00:10:44well because most of the time when people see a provider they're just talking about what they're
00:10:48going to do they're talking about the problem it's very clinically based but it doesn't really get
00:10:52at the root cause it doesn't get at the outcome it's not outcome based healthcare yeah i get that
00:10:58but i go i'm going to i'm going to say the customer journey i go to a therapist yeah therapist says
00:11:05you need drugs i go to you and then you say here's how we balance these drugs yes and then
00:11:13you get paid for insurance to do that and then i go back to my therapist to keep doing my therapy
00:11:18wouldn't the therapist feel like you're interact you're interfering with their plan that they have
00:11:21for the the patient uh no because the therapist oftentimes will be the one that tells the patient
00:11:28about 80 percent of the time that they need medication anyway so the therapist is mostly
00:11:33on board because most of our patients that come to us are already seeing a therapist and the therapist
00:11:37wanted them to come to us for medication management so when we provide supportive therapy to them
00:11:42we're integrating in with what they're already doing in therapy so they're not siloed
00:11:50because why do they have to be separate that's no i i i understand what the problem that you're trying
00:11:55to solve um okay okay it i i i'm it's not it doesn't have it's like it doesn't have a lot of teeth
00:12:05right i'm like i think that if you like basically if you just said hey you need more help than your
00:12:11therapist here's a very low-cost version of this which is we'll send you a video every day which will
00:12:17give you a practice that you can do in addition to the medications and it'll decrease and it's
00:12:20towards these specific outcomes and the ai is just sending the videos i don't think you're gonna get
00:12:24like how many patients a week are you are you bringing on uh we're bringing on well let's see
00:12:29120 55 new patients uh a month so divide by four essentially that's what we're we're getting and then
00:12:38per month we're getting around total patients around 500 five to six hundred what was the next again one
00:12:46one about 155 i spent about 6 000 on ads a month okay so 155 new patients a month um yeah what you're
00:12:55gonna want to do because you're one and a half million a month so it's like what 120 ish a month
00:12:59somewhere in there yeah yeah yeah so 120 ish so it's like if we can get an extra
00:13:06you know for every every every hundred dollars we get from there gives you another 10 increase in
00:13:12revenue um honestly i would rather instead of selling a subscription i think you'll have a better
00:13:20bet just selling to the goal okay and just saying i mean you could test it but like my bet would be
00:13:29something in the i would probably around five or six hundred dollars is what i would want as my
00:13:33price point because that's that's an impulse purchase for consumers um typically in that in
00:13:37that range um call it three to six hundred uh and so i would i would say like your you know your your
00:13:44plan's gonna take 16 weeks we'll we'll basically sell you this automated personalized plan uh which is
00:13:49three hundred dollars or six hundred dollars if we could do that you could probably i mean every 10 for
00:13:54you is like a 7x in profit so like if we get so i just want to keep this simple because the way you
00:14:00explain it i think would drive anyone insane uh and like way too much uh it's just it's two things that
00:14:08you do number one sorting question are you here for the best outcome or just what insurance covers if
00:14:12they say best outcome then you say cool most people don't want to be on medication forever and so what
00:14:18we're gonna do is try and help you like and you're not here to take medication you're here to get an
00:14:21outcome right right okay cool and so we found there's tons of research to support this is that these
00:14:24practices support these outcomes and so it's a one-time thing we plan it and if you can track
00:14:30this would be helpful for you the people who buy our plan versus the people who don't have slightly
00:14:34better outcomes or they decrease their medicine whatever thing that you can track um would then
00:14:38make that like then what ends up happening is that the the value exchange becomes i'm going to pay
00:14:43500 to take 20 less medications in six months from now and i think that's and as soon as you can just
00:14:49make that equivalency um within compliance and all that uh that would be the pinch and so i think
00:14:54if you could just do that that probably will help so would you offer two two tracks for people people
00:15:01who want more interaction that want to use their insurance still and will apply the visit towards
00:15:06their insurance and then the second one is people who want less visits but more information and kind
00:15:10of to strike a balance between consumer mindsets i want to max out insurance and then i want to have
00:15:16something that's on top of that okay so but do we want to increase the number of people percentages that are
00:15:22cash pay because they're only 11 right yeah it's less about like increasing the percentage of cash
00:15:28pay and just saying like you come in you've got insurance insurance covers you for 100 i'm making
00:15:32it up 100 bucks uh my thing is 200 the first 100 is going to go towards we're going to do the insurance
00:15:38deliverable and then we're also going to add this on top got it and you think i'm constrained as far as
00:15:44the what i pay the providers because i know the market rate and the the split i don't and i did the
00:15:49math i could do it in a tiered fashion but then when i do when i looked at the gains given my operating
00:15:54expenses it didn't really make sense to do it that way i was constrained at 50 i think well i mean you
00:15:59have a cost-driven business because you have insurance which means you cannot control price which
00:16:03means you can only control costs and you're saying you can't go go above 50 and so the only way that you
00:16:07can do that is that we either get way more out of them or we find a way for them to do it cheaper
00:16:12like that's it okay now that makes sense like i'm taking what you're saying at face value that like
00:16:16there's no way i think that's false so i would just stop saying that because it's not true like you're
00:16:21running one percent margin there's no way that like because i've seen other businesses that are insurance
00:16:25you know in the space and they don't run one percent margin so like yes you for sure can save more
00:16:30money than you currently are but in terms of ease of getting into a world where you don't have to
00:16:36purely be subject to the regulations and the pricing of insurance companies sorting question and then
00:16:41one plan that you can sell to those people that's on top that's low operational track
00:16:45got it thank you that's very helpful you bet appreciate your time thanks man appreciate you
00:16:53lamine hello what's up are you is lamine is that the way to say there's a little mine has a right
00:17:00i mean all right talk to me all right so yeah i'm a growth operator for a brand selling leadership and
00:17:06self-development to men we're on track to 500k this year we want to target one to two million in 2027.
00:17:13so we have two products one is a two thousand dollar per year online community on school
00:17:18and we have four in four in person retreats a year so we sell them separately or as a package with
00:17:23online community of three thousand five hundred dollars right we sell off bi-weekly webinars 41
00:17:29close rate so i think the acquisition is not an issue the problem is that we are unable to make money off
00:17:34current customers so we always keep on having new customers every single month and they don't
00:17:40renew at the end of the month at the end of the 12 months so also with the retreats people say it's
00:17:45life-changing this is something they want to do again but they don't repeat and they're also not
00:17:50profitable so they eat out like 50 of the margins the retreats is just too expensive so my plan after
00:17:58talking to acqai and just rehearsing is to sell the retreat plus a community package as the front end
00:18:04at like five thousand dollars and then we improve the offer by including like three months of one-on-one
00:18:09accountability with a team member like coaching with a team member okay so we can get them results and
00:18:14then we can upsell them after the end of the three months hey do you want more accountability let's
00:18:19do this and you can join the retreat and also inside the retreat we can upsell to a more premium
00:18:24retreat you should be are you i'm assuming you're not closing out your retreats yeah you're not yeah
00:18:31you need to sell your retreats like that's the issue thank you i'm just telling you right now that's the
00:18:35problem um i agree with the acq ai of of me uh uh on the front end i do think yeah having a five or six
00:18:41k offer for for this type of thing for calling an annual subscription of events works for consumer
00:18:47you know consumer mail audience um you can add in the one-on-one that's fine i think that'll be a good
00:18:52sweetener i think the biggest issue is just that yeah like a delivery event will not be profitable if you
00:18:56do not sell it is a it is a cost unless you sell sure and then we also saw that they tend to kind of
00:19:04value more in person than online things yeah so does everyone and people that purchase both they keep
00:19:09purchasing yeah so sell more of that absolutely that was my plan so i just wanted good no that's fine
00:19:18yeah put all the packages together of the stuff that people value the most price it accordingly and then
00:19:22when you have them come out get them to renew early so the big i'll just give you the big mistake which
00:19:28is people will get afraid of renewing people before the end of their subscription do not do that so if
00:19:33someone has four events they're going to go to which i think is a lot by the way um i think you'd be
00:19:37probably better served with two or three four is a ton like it'd be better to have four and then
00:19:42say pick two or pick three that way they have more flexibility um and then when someone's at their
00:19:48second one that's when i would sell the the renewal with some sort of faster action thing while they're
00:19:53in the moment feeling good they're in the vibes rather than going home feeling shitty yeah and then
00:19:58after like a year they come back to us hey can i join again but and also i have a plan which is
00:20:04we have like the main retreat like online event and then inside the online event we'll sell them
00:20:09like a more premium one with less people and more expensive like maybe more support something like
00:20:14that that's fine that works you just like you're just not selling from your events and you're selling
00:20:19you're selling piecemeal rather than all at once that's it two changes
00:20:23perfect that was uh appreciate you let me all right so let's say could you ask them to grab
00:20:29me a chocolate shake say it again a chocolate shake thank you
00:20:36christian what's up man hey i feel like i see you every week now what's up
00:20:41ah i gotta i gotta make sure i'm active gotta make sure i'm active man how you doing good what's
00:20:44going on god bless man well my name is christian also known as retainer poppy uh i help tick tock
00:20:52shop affiliates close high ticket brand deals and uh we're actually at 1.5 million so far so it kind
00:20:59of went a little down uh we're on track or we want to go to 10 million a year the constraint used to be
00:21:05brand deals right fix that all good current constraint is finding qualified affiliates with
00:21:13the cash to spend to now join the higher ticket offer used to be 4k for a month we changed that to
00:21:22being uh 20k for three months and then the tail at this new price that the closing ratio went from 96
00:21:30down to 20 30 so okay huge thing the plan was to go to 30k for the three months and then have the tail
00:21:40at the rate right now i like wouldn't be too confident like 20k i'm damn it's not closing okay
00:21:4630k i'm like like yeah you know so the it's finding affiliates with the money to spend yeah uh i've done
00:21:55the paid ads organic and i'm ripping on organic right now personal brand so i'm charging higher rates and
00:22:01i have way more testimonials and and proof that it works uh however i'm not hitting it like i'll hop on
00:22:09these calls and everything and i'm i do all the closing yeah and it's still not hitting as before yeah
00:22:16my margins went from 80 percent very nice down to 37.5 percent so now i'm like how did the margins go
00:22:24down when you like where did the cost come from yeah so it went into me funneling a lot into well
00:22:32now i hired more people so like that was one thing i hired like a brand acquire i have more teams have
00:22:36more six-figure employees support perhaps all that yeah um ripping on claude and ai yeah so why don't
00:22:43we do this which is that um if i get you you feel i know you're always positive but like you feel a little
00:22:51beat down so um i'm gonna bet like why don't we basically in order to make an ethical change in
00:22:58the offer right you can lower the front end price and then just basically add a point or two on the back
00:23:05that way you don't have to feel like you're right and so that way when someone comes in you can say hey
00:23:11it's 10 grand and a little higher on the back so you can get you can that should increase your sales
00:23:16velocity i doubt that that like going from 20 to 10 i'm not normally a price guy of lowering it but i'd
00:23:22rather get you back into kind of like feeling good again um and then the the percentage on the back is
00:23:29where you can basically maneuver it so if someone's like hey i paid 20 it's like you can give me more
00:23:34over all your deals and they're like ah you know i'm fine right because you have you have an issue
00:23:38where like you're dealing with you're taking people who are fundamentally broke and you're showing them
00:23:44a way to make a lot of money and the way that that works traditionally is that you take a percentage of
00:23:49that money but you're also charging to do it right um basically to de-risk yourself if they don't do the work
00:23:55um and so yeah i think we can just do this okay okay so currently it's 20 and then i have 10 on the
00:24:04back i know we were gonna do tears that's what i'm getting the brand acquire on because this machine's
00:24:08not running up full percent i can't even guarantee like a whole hey all right you pay me more and i
00:24:13can give you a higher level of brands so i'm just doing 10k on the back and then front is 20. would
00:24:19you now do 15 15 so 15 something like that just to give yourself like again this gives you room to
00:24:24experience because when you have two levers it allows you to do experimentation on the front end
00:24:28and have more unique deals okay so we're like i should not even like consider going to 30 or
00:24:34well you're not closing 20 and so i'm i'm concerned about that uh and so either we have to get better
00:24:39avatars to your point right um the thing is is the best avatars have agents right yeah right and so
00:24:46like you are you're you're trying to get in this in-between hybrid world of like not an agent but an agent
00:24:51kind of thing um and so there's going to be a cap on that because the guys who truly can get those
00:24:57million dollar deals etc have somebody that's representing them where they've already done deals
00:25:01right um and so you're you're trying to get these like emerging stars right that's kind of like what
00:25:06you're what you're capturing um and so yeah i think we just play with the percentage i'd rather get
00:25:10your sales velocity up so that you stop so you don't feel weird okay okay and then as far as like the
00:25:16the the avatars go um just want to mention this because i i know i get to talk to you but i want
00:25:22to spend this uh so you know in info you have like your little pond and like you talk to this person
00:25:28she's like oh my god he's the best great great great great i scooped up a lot of this pond and i
00:25:32have a few more outliers but the pond is like that's the pond now i'm finding like a new i gotta think a
00:25:38new i'm like a new avatar i'm supposing supposing should i keep making my content for like moms and
00:25:46this and that a third of my first avatar or should i now i don't think i don't think you should change
00:25:51avatars like you haven't like saturated the market oh no it's like 45 clients it's not a lot yeah no
00:25:56like you haven't like no i don't think you change your own okay okay and that's what the brands you
00:26:01have like they all know yeah like your whole your whole brand list suits that avatar like i would not
00:26:07like changing an avatar is like probably one of the biggest changes you can make in business
00:26:12so i wouldn't do that yeah i think we need tweaks we need more sandpaper we need less just like less
00:26:16hammers let's go okay you're close it's just a pricing tool i wouldn't i wouldn't get too bent out of
00:26:22shape let's go thanks brother hello hello what's up abram how are you today good man what's up um
00:26:37well i my name is abram uh i sell an easy weight loss program for women uh we are on track for a little
00:26:44over four million dollars this year and i would like to be at 12 million uh what i believe is stopping me
00:26:50is having a lead magnet that builds so much trust that my show rates my cash collected my lead volume
00:26:58are all high enough for my team to hit their goals so i did the rule of 100 and i made the best lead
00:27:04magnet that has ever existed and it is truly better than people's paid stuff and i'm giving it away for
00:27:10free i've never put more time energy or effort into anything in my life so now i am absolutely terrified
00:27:17because this is launching august 9th and if i mess something up now i just wasted a colossal amount
00:27:23of time and my team and their lives suffer so i don't want them to pay for my mistakes so
00:27:33do you have words of wisdom here for how do i how do i maximize this lead magnet so it is a book
00:27:39an audiobook and a youtube course and then the actual lead magnet that they get from that is a
00:27:45like they opt-in for a workbook uh like an email opt-in so you know is there specific things i should
00:27:52put inside the book the audiobook or the youtube course or in the email sequence or something let me
00:27:59give you the the biggest 80 20 on this thing um which is i don't know if you've like tested the name
00:28:05of the lead magnet easy weight loss for women it's a book yeah i would just i would test like 10 20 30
00:28:14different names because it'll have like lead magnets their primary value in the beginning is to capture
00:28:22the lead the lead hasn't consumed the lead magnet yet and so how you name it is going to be that's all
00:28:26they're going to have consumed right before they decide whether they want it or not and so like one
00:28:30of the biggest levers on what like on all that work you did is the package that title yeah the title
00:28:35and the package so i would test the out of that and like you can run that with like simple ads and
00:28:40just look at ctrs um and you can also test the optimal landing page like don't feel weird about
00:28:47again the world is not perfect like if you have someone opt-in for one lead magnet uh and you change
00:28:52the title uh and the other one has like the old field evil cover you can still send it to him with that
00:28:58cover and no one's like really gonna get weird because it's free anyways um but i would i would
00:29:03strongly recommend testing that so it's like thing number one flashing lights like please do that um
00:29:11the second thing is um you said you you feel like your your biggest constraint is a lead magnet but
00:29:17behind that is that that people do not trust you right uh well i would i would assume it's the trust
00:29:24thing because if the show rates are not high enough the cash collector is not high enough you know like
00:29:28we have to warm people up yeah at some point you know in the process if i could just build that trust
00:29:34beforehand by making my free stuff actually valuable yeah i think um you are thinking like a pure direct
00:29:41response guy um and the best lead magnet is content because it's distributed for free and then they
00:29:50become your warmed up audience i think the value of the lead magnet though good um not everyone will
00:29:56consume it etc etc and so like it will work to get leads um if someone actually does consume it they
00:30:03probably will buy uh but the if they consume it is the big the big if and so i would also not be afraid of
00:30:10breaking the lead magnet into hundreds of smaller pieces and using those as content
00:30:16to then you can again funnel it's like this is a small piece of a bigger pie you can go grab it
00:30:21and i think that would also help but at the end of the day like trust if we break it down into
00:30:27behaviors it's just that you have you have told them things that when they followed them good things
00:30:33happened um which is that you just want to have more influence over them and so the way to do that is to
00:30:39just give them help basically help them first right and so a lead magnet is a way to do that but content
00:30:44is another way and it's free with distribution and so like if we look at the biggest weight loss brands
00:30:48that exist they almost all have big brands you know they are big brands or have big brands that promote
00:30:53them and so the lead magnet will be a component of it i think the names will help um but longer term
00:31:00it's going to be like building out the content machine that's going to give you the the trust in
00:31:04advance and then maybe yeah people to make the content for you so i mean i i put out a metric
00:31:09crap load of content as it is i got i started posting two years ago we have over two million
00:31:13followers we get you know thousands of leads every single week um but it's like i'm also like cracked
00:31:21out on paid ads so it's like that's weird that you so but you've done four million this year or four
00:31:25million run rate uh we're on track for four million this year we did like three million last year okay
00:31:31yeah um i don't know what the views of your organic is looking like um but of the people who are coming
00:31:39in have they seen your content uh some of them okay yeah so i'm just saying like to what degree are they
00:31:46strangers uh i would say 90 are strangers yeah that's interesting given given the size of the instagram um
00:32:08so your issue is that show rates are not high enough well i mean it would be everything it'd be show rate
00:32:14close rate um like i my assumption is that if they trusted me more than everything would be better
00:32:23well that you know like so like that is so if i want to do that we agree there
00:32:27so uh because right now what i'm making most of the money in is in a webinar which is exactly what
00:32:34cranks like everything but that is still like a i don't have anything that runs in the background
00:32:42like if i had a a lead magnet that was actually good and i could just send that to everyone
00:32:48have them do it versus needing to show up to a webinar well i think if you try to replace webinar
00:32:53with lead magnet it will not work as well oh no in the background i'll keep running the webinar forever
00:32:58but it's just like uh this is like if they like that they'd be more likely to show up to the webinar
00:33:04yeah i mean you could also give that as a as a carrot for the webinar as well or a portion of it as
00:33:08a care for the webinar as well just to get the yeah yeah um but the main the main vein here is add
00:33:19webinar sales team right correct yeah and so from the webinar you're saying the sale the show rate on the
00:33:25sales team is low um the show rate to the webinar is probably the lowest thing i mean we got a 30
00:33:32show rate on the webinar that's fine um but it's your kpi for a webinar for cold traffic is 25.
00:33:40so like you're fine like that's you just have to make the math work there like you're not gonna
00:33:44i mean sure it's diminishing returns at that point like there's probably somewhere else that would be
00:33:49you'd have greater leverage okay so let's assume that the show rate is not a problem um of the people
00:33:54who show what percentage are are booking uh we got a 10 booking rate okay people that show that's
00:34:03just not that many people though you know like it's the the opt-in rate is probably the the biggest
00:34:07thing it'd probably be because like out of a thousand people we'll get 50 people that actually
00:34:14register for a live webinar you mean a thousand clicks yeah a thousand clips yeah okay so you have
00:34:20a five percent you have a five percent opt-in rate yeah well then yeah man i think that is the
00:34:26if we're looking at webinar metrics right um that's probably the biggest constraint that you have
00:34:33because the 30 show up is fine the 10 is probably low um that should probably be closer to 20 if it's a
00:34:40book a call cta rather than a purchase cta so that's there's something there but the biggest by far is
00:34:47the opt-in by a mile because like you can be at 25 or 30 percent there and like that's where you have
00:34:53like a five or six x there so if i were you i'd be looking at um the ads matching to the opt-in page
00:35:04and i would be like my quote rule of 100 where i'd be focusing all my marketing time would be on that page
00:35:09like how to make this clear how to make this simpler how to use more visuals how do we um call it add
00:35:14trust right to that page and just make it more enticing and more interesting um than what it
00:35:19currently is because that like again it's like i look at the averages here if you're a 30 show it's
00:35:24fine like it's not like we're not gonna we're not gonna get like you're not gonna get from 30 to 60
00:35:27it's not gonna happen but you can absolutely go from five to ten you can absolutely go from five to
00:35:3120. and so that's that's where i think you have your your 4x is in the opt-in so does the times that
00:35:40they have open in order to opt in for it is that a bigger leverage like that is for sure a lever that
00:35:46is for sure a lever do you have just in time right now is that how you're doing or are you doing uh
00:35:52no there's two there's two that are it's twice a day so it's at specific times and you're doing both
00:35:58of them yeah it's broadcast live i mean i did it but i'm not doing it so it's recorded yeah it's uh
00:36:07two zooms still so they still join a zoom thing but it's twice a day and they have to register for it
00:36:12correct well i would hardcore consider it just in time
00:36:17well if i do that i the show rate drops down to five percent uh so it's like the like uh so when i
00:36:24do the the thing what happens is they go to a vsl right after then they get a bunch then they get
00:36:30like the email popped in and then a couple hours later the webinar goes and then the show rate goes
00:36:36from five percent to thirty percent
00:36:53but it is recorded right now correct it is auto you're just picking two times
00:36:58correct yeah that's what i'm saying i could just pick different times if that would potentially be the
00:37:03thing i mean what matters is they feel as though it's real i'm guessing and it's actually on zoom
00:37:11yeah yeah no i get it um yeah the big levers there man that's the big lever bigger than everything else
00:37:18by a lot does the time or the it's both i'm saying five percent is the problem okay yeah five percent
00:37:26is the problem availability is a big you know a big thing of that um
00:37:32god there was this guy who had this this little hack that he did which is like
00:37:36he had this thing where it was like it just started two minutes ago
00:37:40when they were there like one live right now and that like murdered for him
00:37:45yeah i mean you could just in time you could do it every whatever but it has a different software
00:37:52you mean instead of zoom yeah instead of zoom yeah so um that's the one i did before with a terrible
00:37:57show rate like even like at the the peak of my webinar if i'm looking at the stats i get up to nine
00:38:02five percent of people that opted mm-hmm mm-hmm that is the lever though i'm just saying
00:38:13so more webinar times or different webinar times i would say i mean and and both yeah i mean page the
00:38:21promise on the page um and then the availability availability in terms of like their ability to
00:38:25schedule but like if i'm if i'm you all of my focus is on this point so basically all the permutations
00:38:33of my testing and all my obsession would be here not on the show right on the the optin yeah yeah and
00:38:41then like i think the webinar could probably be improved if it's at 10 it should probably be at 20 but
00:38:45like okay like not the the the thing i would focus on is that yeah because that'd be like a 4x potentially
00:38:53that i could do cool all right well i will try all of those things and i will test all the lead magnet
00:39:00titles and split it up into a million pieces good thank you so much thank you bye my people do not spam the
00:39:10chat i will guarantee that here's my guarantee that if you don't if you do that i will never never answer
00:39:16your question all right what's up tristan yo what's up alex are you good yes i'm great how are you
00:39:24fine thanks for having me i'm excited so uh let me break it down i'm calling from europe we run a
00:39:29done for you photo booth business specialized on nightclubs only uh we are on our way to hit one
00:39:34million revenue revenue this year uh done for you photo booths so we uh guys yeah photo booths and we
00:39:42only put them into nightclubs so we want to be at three million in the next two years our business
00:39:47model is we own the booths we put them in the nightclubs we earn per picture that the guest takes
00:39:52and we pay a commission to the club our ltv on average is six years plus reality is probably longer but
00:40:00nature of the business is clubs close so that's how we lose them but in general we don't have any
00:40:06sure what's the revenue yeah what's the revenue per uh club per month i know it depends on the club
00:40:11obviously but give me an average yeah on average we have a booth we are at uh 950 um gross and which
00:40:17leaves that at uh 450 um to 500 a month contribution margin before hq overhead we run 80 booths at the
00:40:26moment so you give them you give them half and then you take half to do the rest of the business no no
00:40:31we give them like 20 to 25 percent okay um and yeah exactly and that leaves us at about 30 net
00:40:38margin after overhead and debt uh while thanks to you we leveled up in leads with doing one thing
00:40:44that really worked for us is doing more of what really works and what already works instead of
00:40:49trying new things all the time that really helped thank you uh that brought us to our real
00:40:54constraint which is cash flow so for new machines um if we want to hit our goal we need to upgrade our
00:41:00money model so far we tried to upsell uh an upsell offer for the clubs that brings them from 20 to 25
00:41:07up to 50 with paying a one-time fee of 6 500 but the market did not really take it only our
00:41:14flagships would take it but they earned that money in two months so that's not interesting for us
00:41:20um we have some brand partnership deals um with liquor brands they do the the sales for us um so far
00:41:27um they were also skeptic in paying up front so we had a resistance and at the moment we are at like
00:41:3317 months till the booth is paid back and we need to bring that to one to two that is my constraint the uh
00:41:39the booth that you have the the sides of the wall do you um hmm interesting yeah part of me was thinking
00:41:46about that from an ad space perspective too but no worries um with a business like how much are the
00:41:53machines uh it's like 7k roughly okay yeah yeah um hmm i wonder if instead of owning them you could lease
00:42:04them from the manufacturer it's probably also possible i always have the feeling that it's better to own
00:42:11the stuff long term um but of course we are constantly cash constrained so it would also be a solution
00:42:18yeah i don't i don't hate that because you're still doing the arbitrage the thing is is like if you own
00:42:23it in six years it might be outdated and need to get you know i mean like it might it you might need
00:42:27a refresh anyways um and what you really care about is just placing them and having the spread right
00:42:34yes yeah i i'm curious what the lease payments would be because like if you didn't have to pay
00:42:40seven thousand each and just had to pay like a hundred dollars a month or two hundred dollars a
00:42:43month or i don't know what it would work out to be that would basically like you'd be good to go
00:42:50true never i actually because i always thought i want to own them and uh that's a good idea the
00:42:55thing is they're not an appreciating asset it's a depreciating asset right like that like yeah 10
00:43:00years from now a photo booth is not like more valuable yeah that's true make most of the time
00:43:06we just change like the software and a little bit the license side but the cage it's like it's been
00:43:11there for i don't know for 30 40 years yeah it didn't change too much yeah but i got you i i love
00:43:19the point i never thought it that way i always thought okay we buy them um there are definitely
00:43:24providers that do this um we will hit this and just do a test run with a few booths and see how the
00:43:28numbers are so this is a model issue so in terms of like because again it's like you have a you have
00:43:33a very understandable business like it's it's very straightforward and it's also very predictable
00:43:38um which means that you could just model this entire thing out from a casual perspective and say
00:43:41like okay well we are going to pay more for the machine we're going to pay 9 000 per machine instead
00:43:47of seven but it's going to be over five years that will materially improve our business and whatever
00:43:53like we just see this as cash flow streams and your your net would should go up rather your net free
00:44:01cash should go up yes yes definitely cash flow will go up of course most of the available cash goes to
00:44:07building new machines at the moment which i mean if you're trying to maximize for
00:44:11not you know for not paying taxes you can basically get your income down to zero because you always just
00:44:15buy more machines uh but right but then you're not making any money uh so it's a bit of a you know
00:44:22kind of a catch-22 um i don't know like if if yeah where that business gets interesting in terms of the
00:44:28purchasing reverses the leasing is you can do some fancy finance stuff so that you can like it depends how
00:44:35you recognize the river versus how you recognize the cost like there's some interesting things you can do
00:44:40there um but if like the constraint of the business you basically have two options outside of changing
00:44:44a business that already works option one is that like you can get a capital injection meaning like
00:44:49you sell a small part for a big amount of money and then use that cash to then get you from 80 to you
00:44:54know to 200 or 300 or whatever because yes like if you had a million bucks right that would mean uh
00:45:00you'd get 13 per million i'm just rough math right uh 13 13 13 um things per sorry per 100k
00:45:09uh so you get 130 more with a million dollars right and so that would almost triple the business
00:45:16um not quite but almost and so it's like maybe somebody would be willing to do that but i would
00:45:20probably just look at the lease model if that was the constraint of my business because if you can just do
00:45:26that and you can scale limitlessly that's not too bad why not yeah true thanks man i think actually
00:45:33for this i have a lot of questions but for this i'm totally fine and i will try it um sometimes
00:45:38it's so obvious and uh yeah we thought many ways but not the obvious way so thanks a lot
00:45:44i'm glad i could help dude appreciate you thanks thanks man bye you bet all right denzel
00:45:52hi alex what's up my name is denzel i sell done with you and done for you due to growth
00:45:57to spanish speaking business owners all right our core offer is a 10k euros three month program
00:46:03we did we did 510k on 2025 and we are on pace for 700k in 2026 i want to hit 2 million per year
00:46:11but what i stopped what is stopping me is mainly uh lead supply and that's giving me big changes on
00:46:16income every month we've had some months where we've done 100k euros then 30 uh yeah 35 okay
00:46:23euros next two months we have two marketing channels called email and organic youtube content
00:46:29we run a two call close uh on called email so i have the metrics of the last uh 10 weeks but i'll
00:46:36skip them for now uh the funnel more or less works the problem is the pond i've checked on apollo and
00:46:43the data says pure cold outbound has maybe one to three months of fresh icp inventory left and last
00:46:51week was our lowest volume in two months with zero uh closing calls booked um so that's one thing the
00:46:58second market marketing channel is uh organic youtube content i have my personal channel our podcast and
00:47:02mid channel last year we did 7k 200k views per month more or less and converted really well as inbound
00:47:08engine but this year we can't get any channel out of denzel what's the issue yeah
00:47:16uh first how do i fix the big changes on income second uh to 3x to 2 million do i keep betting on the
00:47:24same market with high volume or hybrid model lower personalization volume hyper personalization on the
00:47:31best qualified leads or is this niche simply too small to 3x by squeezing it harder no i mean the niche
00:47:37isn't too small you're helping business owners create youtube stuff yeah no the niche is not too small
00:47:43like you're fine there um the volatility of your lead flow is because your organic is volatile so if you
00:47:50have a good video that rips you'll get more leads yeah but most of our uh sales come from um cold email
00:47:58you're not getting anything from your youtube uh almost nothing which is ironic because that's what
00:48:04we do for clients but yeah yeah that's i mean that's a problem but i will i won't even address that
00:48:11that's nothing but yeah yeah okay so no i mean cold email isn't too small i mean you can you can continue to
00:48:18grow it um i am surprised that your your youtube is not generating business if your whole point is
00:48:30that you can help people build youtube to generate business that is something concerning since it's
00:48:35literally what you sell right yeah i know i know because we have clients that in first month they are
00:48:41doing 500k views per month on long form and that's awesome to lead generation but we can do it with
00:48:47ourselves it's a little bit strange yeah do you put ctas inside of your content yep um 30 percent of the
00:48:58end of the video first comment in the first link of description yeah like the whole playbook yeah very
00:49:04interesting um i mean fundamentally you would need to do more or you can run ads right like if you're making
00:49:14content right now it's very odd that your content's not converting i don't have time to dive into why but
00:49:20that's one thing um i don't know what the nature of the content you have is like is it very clearly
00:49:25educational around this specific topic for that avatar or is it just like getting views in general i don't
00:49:30know um but that would be something to look at like basically it's showing that like you're if you're not
00:49:37if you're not able to sell from your organic it means that you don't have influence and so you have to
00:49:41figure out why you don't have influence because fundamentally if you give people good advice that
00:49:44helps them you know grow their grow their business or youtube then they will want to give you money
00:49:48to help them um yeah like it it's just it's just that cold email as you continue to scale gets more
00:49:56and more complex right yeah um and so there's nothing wrong with it like you could absolutely just do
00:50:02more and have to cycle through more domains and warm up more you know all that that whole game yeah um
00:50:09but you will you will eventually get into the world where you will run ads
00:50:14okay yeah because right now our whole world is called email yeah but if an account gets into spam is
00:50:22two months of uh suffering so well i would i mean are you not spending up multiple accounts at any
00:50:27given moment yeah we have like uh i don't know how many between five and ten domains with three or
00:50:34five sub accounts on each domain yeah yeah okay they're doing that yeah um but just so you know like
00:50:41the nature of the business you have is that it's it's coaching correct or is it's done for you no it's
00:50:45done with you and then we have an absolute for done for you right but when you have done with you it's
00:50:52education which means it's almost entirely transactional and so if you want to scale the business it's
00:50:56almost entirely scaling acquisition because no one's staying for more than a year and so whatever your
00:51:01revenue is is what you were able to sell that year and then you every month you have to start over at
00:51:04zero it's one of the unfortunate things about education right plus side is as good margins downside is
00:51:11there's no recurring revenue right that's that's kind of the trade um but yeah you'll you'll probably
00:51:16have to venture into the ad side um and having the the larger youtube the thing the biggest the big
00:51:23red flag for me to be really honest with you is that you're using the thing that you sell your clients
00:51:27and you're not getting anything from it like i don't like that for a number of reasons i don't know if
00:51:33you want to dive into organic content because i know that's uh sometime but uh i think the main
00:51:41problem is on impressions because we are we've got great ctr great uh retention i think main problem
00:51:48could be on uh impressions because um when the video is about how to grow on youtube in general we get
00:51:56some impressions but uh low qualified leads maybe gaming channel kids with uh gameplay channels uh if i do
00:52:04a video about how to get more how to get more leads i get 300 views like it's absurd yeah so um
00:52:14i've got a buddy who i think he's like 25 000 on youtube and he does two and a half million a month
00:52:20uh right and so like views don't matter at all
00:52:29at all well 10 they matter uh they only matter if everything in the content is catered to the correct
00:52:36avatar once all of that's right then views matter but until that it's just getting people it's showing
00:52:43people who aren't going to buy your thing stuff which whatever and so my bet is that the nature of the
00:52:52content you're making like you said you need to learn how to make the content that's getting 300
00:52:55views to get 30 000 views
00:53:00okay and i'm going to also bet that part of the reason that it's not doing as well is because you're
00:53:06not good enough at it yet meaning if you want to teach the stuff you're having a hard time teaching
00:53:12it because you're not succeeding at it very well like you could probably teach more about cold email
00:53:16than you can about about making a youtube yeah do you know what i'm saying i understand it yeah yeah
00:53:24and i'm not trying to i'm not trying to make you feel bad i'm just saying like where is your true
00:53:27expertise like you're not generating 500 000 a year or 700 000 a year off for youtube you're generating
00:53:33that off cold email and so like your ex like you're teaching you're selling a customer acquisition channel
00:53:39that you are not using and so your your depth of your ability to talk about the subject which is what
00:53:43where you demonstrate expertise is probably limited because it's not working
00:53:49okay but it's working for our clients like we do it work for our clients it's not for us but i
00:53:55understand you some not all yeah obviously right and you're you have you have you have the business
00:54:03that would be the most catered to like making youtube videos to get leads um but so like i'll just
00:54:12figure with you i think like you solving that is probably the the most important thing i think
00:54:16getting to a million you can scale your you can scale your cold email to a million no problem um i
00:54:21think getting you know going beyond that is just going to take more and more kind of operational tech
00:54:25complexity um your eventual state though will be getting to ads that's where you'll end all right so
00:54:38should i do more cold email do more cold email improve the quality of your content that is the
00:54:45correct content that gets you the right leads don't make more videos that get that don't get leads
00:54:50there's no point why right there's no point yeah 100 okay and then do those two first get to a million
00:54:57do that and then once you do that then you can experiment with the ads
00:55:01okay so once i'm at one million per year i can start with that understood thank you so much alex you bet
00:55:08man appreciate you bye
00:55:13all right eric nice nose strip thank you alex uh hi alex my name is eric robert
00:55:19so sustainable online weight loss coaching to busy professionals 30 to 55. uh last year we did 3.2 million and
00:55:28this year we would like to do 10 million um this year but hopefully soon like to do 10 million uh but
00:55:33what's stopping me is consistent lead flow and signups to outpace structural churn um and if i don't
00:55:43solve this i won't be able to continue to give my employees raises and great lives which i take very
00:55:49seriously and my parents retired this year so i'd love to help them financially in retirement and just give
00:55:54them a really cool retirement life so yeah i've got i've got good news and bad news
00:56:01the uh the bad news is you're never going to solve churn with weight loss
00:56:09it's it's the nature of the beast the good news is you don't need to focus on it anymore
00:56:16you need to focus on everything else so like there are so few like massive true weight loss coaching
00:56:24businesses in existence because of the core problem that you have identified which is it's a pure
00:56:30distribution game like if you're in weight loss it's marketing now you can the people who make the most
00:56:36money in weight loss are the people who sell the plumbing to weight loss right like so you could sell
00:56:41supplements but it's not about weight loss it's just like it's stuff right uh you could sell you know
00:56:45peptides and you'll make more there because it's stickier like people are happy to inject or take
00:56:50pills and powders and potions than they are about like coaching and changing their lives right and so
00:56:54i only say this because i spent too i lost too much of my life trying to solve this um and so there are
00:57:00just some businesses that are just not built for it because like fundamentally even though it feels like a
00:57:04weight loss is kind of its own thing it's just an education business you're teaching someone like
00:57:10it's all it is it just has there's just so many people want to lose weight that it's an industry
00:57:13but it's fundamentally it's just an education business um and so all of your focus should be on
00:57:21front end which is about distribution and cac reduction um under the assumption that what do you
00:57:26what's your price point for your thing um so we have a front end eight week challenge that's between
00:57:32500 600 a month and then 60 to 70 people then percent of people take up on a six month transformation
00:57:38package after that so um so yeah it's the same price as well and then if for the 30 of people who don't
00:57:46take up the six month one-on-one transformation we have a downsell continuity and so on and so forth
00:57:51so are you selling one to many on the front end or are you selling phone on the front end you're saying
00:57:56yeah for the one-to-one uh it's phone calls and i do all the sales calls interesting okay so then on the
00:58:03front end for the 500 for the eight week thing that's like 500 bucks right you're not taking
00:58:07sales for a month yeah yeah are you taking sales calls for that too yes sir geez it's a lot of sales
00:58:14calls it's a lot of sales calls well so that's it's not so i average about 15 sales calls a week
00:58:22and so i think that's where i'm like i need to get obviously get more of those yeah well i mean it's it's
00:58:29it's pretty compelling that you're doing the numbers you are with only 15 sales calls a week
00:58:32and you're still running the sales like that's actually very impressive um
00:58:38yeah so ltv is what so if you have 1500 on the front end call it right is what you're making per
00:58:43customer and then half of those are buying a what price point on the back uh same price point just a
00:58:48six month so somewhere between like three if they pay in full they get a yeah so three to four grand
00:58:53somewhere like that okay and what's attrition on that is like because you said churn is a problem
00:58:57so what's the issue um i would say after those initial six months or i guess the full eight months
00:59:05because eight weeks plus six months i think that's where it typically tends to drop off but then it's
00:59:11just like we keep people for eight ish months but then it almost seems like every week i sign
00:59:1710 to 15 people up but then 13 people cancel so it's just like they just leave on the end yeah
00:59:22they leave on the back so i'll give you a simple tactic that we can do just to give you a little
00:59:26bump um but then the majority of your focus should be like basically do this first and then and then
00:59:31focus on the front um which is when are you selling the renewal on the back four weeks in okay i mean
00:59:38yeah i mean that like you want to have multiple hits at the pinata right you don't just have a smack at
00:59:42one so four weeks is good and and it's um it's six months right yeah so i have um you already are
00:59:50doing a back end ascension right and your your your front end your front end upsell rates are fine so
00:59:56i'm not i don't want to touch that part but the back end part on the six month thing um week four
01:00:02works i would also throw in a any milestone that happens and then halfway and then last chance and so
01:00:10last chance should be the month before cancellation um those would be the four times and do you have
01:00:15coaches right now yes sir yeah so i would have i would have my meeting with them like your sales
01:00:22meeting with them at the halfway point and then it's positioned so that you're like hey this is
01:00:26just my way for doing quality assurance making sure that you know like you're having a good experience
01:00:30tell me what's going on and the clothes that we use there is basically all roads lead to roam
01:00:34which is that like um if things are going great let's keep the party going if things are
01:00:39not going great any more help so let's get let's keep the party going like either way like you have
01:00:44you have a reason to buy um and then yeah last chance is last chance so we want to do that before
01:00:51they end the thing because once they're once they're done you know completed their six months it's a new
01:00:56buying cycle and so we'd rather catch them right before any of that stuff happens so we want to have
01:01:00multiple licks of the of the of the ice cream cone uh beyond fixing that right uh and that's just probably
01:01:07just going to get you a lift the big thing after that is probably going to be like and if you want you can
01:01:11improve the offer um on the back so it's like listen and you could justifiably say this which is just
01:01:17that um it costs us a lot of time to get you onboarded way less to maintain you because we had to do all
01:01:23this work together and so basically it's double it's double your money on the back and so you can sell
01:01:30you can sell a year on the back for the same price as you sell the six months so it's like
01:01:34buy six get six um as just a more compelling off on the back i just i'd back pocket it because again
01:01:40the cost of you you know this by the time this month six or seven like they're kind of on autopilot
01:01:46and so your gross margin will still be fine okay that's what i would do on the back end um
01:01:52the only like you are you're in a distribution game which is either going to be from brand or
01:01:57media arbitrage in terms of your ability to buy buy buy media um a lot of the big brands like will
01:02:05typically have like you probably don't want to get into the peptide stuff but that is crushing right now
01:02:10just saying like it is well it's funny i actually partnered with somebody who does like blood work
01:02:15and gop1 and peptide and stuff so i'm considering it but yeah i would look at it because i think like
01:02:21the ltv on this customer is significantly higher it also allows you to have kind of pseudo medical
01:02:25positioning which allows you to have more price uh you know flexibility um basically i'd probably do
01:02:33that all that back end stuff first and then i would go gas the front end because with the enhanced
01:02:39ltv enhanced gross margin um and hopefully some stickiness on the on the kind of like medical
01:02:45stuff that should give you more cash to be more aggressive because like if we can if we can add
01:02:4950 to ltv our lifetime gross profit if we just did that that'd be pretty material uh because that alone
01:02:56would allow you to just just spend that increase on more customers are you running ads um so i literally
01:03:02just started running ads like two months ago everything's been organic beyond that yeah uh once you get into
01:03:08the ad side like that's going to take you from three to ten pretty straightforward if you've done this
01:03:11all on organic up to this point and then with the ads i have been i did all the math this morning
01:03:18roughly like a 135 cac and so like are you at that point what's that it's great okay uh so i should just
01:03:27then just spend more on ads yeah that's i mean that's a stupid connected okay it's a tiny cac bro tiny the
01:03:34teeniest of cac's i've been told that in many ways okay sweet cool no dude like super helpful like i would
01:03:44do these things to the business anyways regardless but yeah gas this out of it okay cool thank you so
01:03:50much man appreciate that congratulations to uh you and layla on your son thank you appreciate it
01:03:57do we have more nicotine don't worry i'm gassing up for you darina i'm going i'm going full full steam
01:04:04eric's tiny cat got me super distracted
01:04:09you grab some all right cool let's do it all right so context i place trained content operators and
01:04:15editors with service businesses coaches and founders our operators are based in ukraine we handle full
01:04:21content management including stretches scripting editing short form long form and volume now um we
01:04:27build the strategy place the person and then we manage them for you on a monthly basis yeah right now
01:04:32clients paying 6 500 up front and then 2500 per month uh we are tracking towards 800k this year margin
01:04:41the first time we talked to her at like 200 ish right yes no yes there you go a little 4x thank you
01:04:47thank you but still offer referrals though so yeah uh we've been doing really well but right now the
01:04:54biggest question is how do we build the system for client acquisition i'll explain why we haven't
01:04:58built it yet because it's been kind of chicken and egg you get more clients and then on the back end
01:05:03you're like trying to make sure everybody's working really well and we by the way that's how service
01:05:08businesses work really that's how it works but it's just like yes chicken and egg and the steaks i know i
01:05:16needed to mention states they're personal um obviously my family from ukraine so there's a work back home
01:05:21i support my parents right now pay for mortgage uh you know make sure that they're well um yeah
01:05:28that's where we are if you had 90 days right now to grow the business to 1.5 this year and then uh get
01:05:36it to a million a month uh what would you do what the channel would you activate to actually get the leads
01:05:41and also apologize for background noises somebody decided to do reno's uh you're fine okay um
01:05:50well how many customers can you handle on a per week basis well now we can handle more so right now
01:05:57we have 45 people on mrr and then we can probably take 10 more people every week so finally i think we
01:06:04kind of fix stuff on the back end um so that's right and what's churn three percent monthly here a year
01:06:14yeah great okay so i mean your ltv is absurd right i mean you're looking at you know 60 100 plus you
01:06:22know virtually unlimited ltv for the purpose of the conversation let's just let's put it at 12 months so
01:06:26it's like you're making at least 30 but your gross margins are a little lower so you have to pay the editor
01:06:31or whatnot so what are the gross margins the gross margin yeah so 16 65 okay 65 so they're they're a
01:06:40thousand bucks and you're and you and you make 1500 extra to like run everything else yeah okay got it
01:06:46um that's fine okay so
01:06:55you do probably have a little bit of pricing sensitivity there i won't like get into it but you
01:06:58probably could get up to three but we'll i'll leave that alone for now um just because again when i see
01:07:05that you're at three percent annual like you're fine like you probably like no one's leaving right because
01:07:09you're obviously doing a good job on the stuff um so we just have to increase your demand and so i'm
01:07:15assuming are you running your your model like are you running your people to make you content now yes so
01:07:23so now yes i have a lot of content ready to go to be honest yeah it's because i wasn't running it
01:07:29because i was afraid that everything's gonna break on the back end and with ai now releasing stuff every
01:07:34day we needed to make sure everybody's on board and know what's going on so i haven't been doing it but
01:07:40now i have the team ready to go and we're implementing this week so yeah so if i were like if i were to take
01:07:46the business over i would be going aggressively on the content obviously um you're that way you're
01:07:51eating your own dog food you're you're demonstrating the stuff and the majority of the content should
01:07:56be about what content to make and what formats are working well right now uh too and you're looking
01:08:01for business owners right yeah to generate leads right so it's like you want to show basically everything
01:08:08from basically the entire process up to the sale how how the content machine works so to speak
01:08:15um and just go really in detail like don't worry about the views just worry about like making sure
01:08:19that the person that watches it is like oh this was good um and they just you want to demonstrate
01:08:23that someone sees that it's like i don't want to deal with that i'll just have her do it for me
01:08:26that's what you want someone to like think when they watch your stuff um but if i had to double the
01:08:32business i would just run ads right like i would make the content why not because i would take that
01:08:37and then those become the ads anyway so you have to you have to make creative either way and so you
01:08:41might as well just make them as content and then find the good ones and then just run those as ads
01:08:45directly um but that's about it like you're you've got you've got a good business you have absurd churn
01:08:51for the nature of what what your thing is expect your turn to go up when you're getting to colder
01:08:55audiences now that are not referrals so like up to this point you've only sold on referral uh which is
01:09:01wonderful and also terrible because it's like means you've never actually sold uh because people are
01:09:05like they already know the price they already know you they already have an embedded testimonial
01:09:09who's a friend of theirs so they're just like yeah i'll just do that um i wonder
01:09:18if you really wanted to you could probably this is a little bit of a riskier play but kind of
01:09:22interesting is like you could say hey i'm going to be bumping the price to 2500 to 3000 a month
01:09:27um but if you send me a referral i'll keep it at your price okay um quick question on the ads uh right
01:09:36now we try to run ads but everybody who we attract they're kind of less than one million a year right
01:09:42now my ideal client million plus they probably run ads they tried hiring they know it sucks they don't
01:09:48want to manage people and they just need somebody who is going to come in and just take over and do content
01:09:52for them just say that that's the ad oh okay that's the ad if you're a million dollar business owner
01:10:00and you run some ads right now and you've probably tried concept but it sucks you don't want to manage
01:10:04the person i have a whole team out of ukraine i have three percent in insurance so people actually
01:10:08think my stuff's good and that way you can just have it outsourced for less than you'd be able to do
01:10:11in the us okay okay and would you lock in people for longer because right now it's months to month
01:10:17so they pay you don't need to the upfront the fact that you have an upfront that's you know two
01:10:21or three months of expenses is is fine for now um and the thing is is that there's contracts are not
01:10:28enforceable at least in the us not really um like you're not gonna you're not gonna put people to
01:10:33collections uh i doubt it so like if you want it's only just for like the mental commitment
01:10:39around it um but no i would say right now i would like if i were to do one in your place it'd probably
01:10:45be three months it wouldn't do 12. i'd do like three months minimum because listen if you think that
01:10:49you're going to get results in 30 days like this is not for you yeah okay and so would you
01:10:54root at all or just like add to content right now don't worry about partners um i had partnered up
01:10:59with somebody and i was getting a lot of referrals from them yeah um really well so would you just
01:11:04double down and find communities to partner up and just help yeah i remember we talked about this a
01:11:09while ago yeah uh more of that is probably a great first step okay so just kind of ads we would just
01:11:15say like again i don't want you to do all three of those things is too much so you doing qualium good
01:11:19idea it's you eating your own dog food you got to hire one more person you're the customer fantastic
01:11:23that one's off the board just get that done uh i think you then doing outreach to
01:11:29businesses or or forums or groups or whatever school communities that have your specific type of
01:11:34avatar is a good is a good start because you only need a couple of those for like you need two or
01:11:39three of them and it's like great we just tripled the business perfect and lastly for the ads what
01:11:44would you spend what would the kpis that you would be looking for i would just try to make i try to
01:11:49break even on the first on the first transaction if you can do that you're good amazing okay and do
01:11:54have a second before one more last last last last question it's got to be the lastest of the questions
01:11:59lastest okay promise you uh so anything you would recommend on the back end to make sure the quality
01:12:06consistently stay high and nothing breaks so once we get extra 100 clients like we can actually sustain
01:12:12the quality keep getting referrals and do not go down this churn um
01:12:25so in in quality management there's kind of two schools of thinking for qa one is that everything
01:12:30gets reviewed the second way is that it is a random uh a random number of things get reviewed from like a
01:12:36product line and so you can just pull one off of the rack and as long as they know
01:12:42that every so often random you know assets that they're making are getting pulled and making sure
01:12:47that they're following or adhering to a checklist um that will allow you to at least enforce it with more
01:12:52scale um but i would imagine that a lot of it is just the checklist that you're having them follow
01:12:58like make sure there's a hook make sure those and then just grading them against that that checklist
01:13:02and what will happen is just that over time that checklist will improve is that you will have more
01:13:07things that they will need to adhere to in order to increase the overall quality of all of the the
01:13:11shorts okay okay makes sense thank you next time we talk i'll be at 1.5 rock and roll darina congrats
01:13:20thank you a little quadruple not bad what's up jeff how's it going alex nice to meet you um so my
01:13:28name is jeff i sell online weight loss coaching for moms dude i don't want an online weight loss
01:13:32coach kick today geez all right i know i know so last year i did 288 000 um my goal i feel like
01:13:40it's simple i need to get to 600k so my wife can keep staying home with our four little kids and
01:13:45honestly so i don't become a failed entrepreneur like my dad which is uh kind of emotional but you
01:13:49know this is so this is my version of scale or fail and uh i need your help here so my main constraint
01:13:55is acquisition and so i've tried three paths i started with organic local facebook groups and
01:14:01that got me to like 20 to 25k months started trying local meta ads and now i run national
01:14:07meta ads the local has died down with the organic the local ads the cost per lead was really high
01:14:13the cac was over a thousand and so now i'm on to national what was it a thousand for local
01:14:21yeah something's wrong something's wrong what's what was what was the offer like were you were
01:14:25you doing like walk me through that because the weight loss leads right now are like 20 ish local
01:14:33yeah i still have my balls there because of too much so what i was doing was i was running a lead
01:14:39magnet funnel to sms and so they went to my landing page sms got him onto a sales call and so i just
01:14:46couldn't my creatives were fatiguing really fast and i just couldn't get the traction that i was
01:14:51looking and so i switched to the national side and now my cac is at 750 and like my cost per lead is
01:14:58half so like instead of 20 it's now down to like eight dollars for cost per lead and it's the best i've
01:15:02ever been at but basically i'm in a place where i'm trying to figure out what to do for acquisition
01:15:06because i've tried a bunch of things and i just hear you in the back of my head saying more better
01:15:10before going new and i'm doing a ton so like my question for you is just like if you were like jeff
01:15:15this is what i would do to get to consistent 50k months what would you what would you do like how
01:15:19would you set it up what's the price point 2700 for 16 weeks um i close at 40 percent and then 50
01:15:28re-sign sorry we're about to have a tornado outside our house right now good i'm gonna say something
01:15:33wild for you it's gonna be very different than i think you're expecting so i ran something called a
01:15:38hybrid model at gym launch for a long time and the reason was for the exact type of situation that
01:15:44you're in now to be clear it's not going to be a model that's going to get you to 10 million dollars
01:15:4820 million dollars a year but it's like if you want to get to like 600 with like very good margins like
01:15:53this model works all right that's all i'm looking for cool so all you have to do is get any local gym in
01:16:01the area uh to give you an office that you can use and like most gyms will just you know like couple
01:16:07hundred bucks a month like this should not be it's very cheap the reason for that is because again
01:16:13i'm talking speed to money and risk associated with it there are more skills that you need to have in
01:16:18order to advertise nationally uh like you probably saw two of the calls before this right there's
01:16:23both those guys have have large you know like instagrams or youtubes or whatever um and then
01:16:28there's slightly more complex funnels there's targeting a whole bunch of stuff right with local
01:16:32you really just gonna go lead gen call them up send a video meet them in person close
01:16:38like that's that's basically it like it's that simple um and you can fill your calendar up with
01:16:44that stuff uh and so the the pitch is basically uh you need fitness nutrition accountability i'm sure
01:16:51you're familiar with with that component of it but the reason that i'm meeting you in person is that you
01:16:55can like have trust you know that i'm like i'm in the area if you need anything um but we i don't want
01:17:01you to buy another gym membership that's not my goal here because at the end of the day there's only you
01:17:07know three hours a week that you're at the gym our time is for the other whatever the remainder hours
01:17:12are right like that's what i'm here for because that's where you're getting fat and that's basically
01:17:18the whole focus which is like i target the other whatever the number is number of hours per week and
01:17:24so we'll meet in person and then then you can basically check with them two times three times
01:17:29throughout the throughout the you know the 16 weeks and then just use the in-person sale to sell the
01:17:33renewal so you're saying like that is the easiest highest likelihood like because it takes no like it
01:17:43takes you don't have to have very good creative you don't have to any have any complex funnels it's
01:17:47like you generate leads you send them a video they show up in person and then you sell the big ticket
01:17:51thing that's it so you're just like when you say that's like i'm like i'm just running ads locally
01:17:58to have them basically have a conversation that you're interested in basically getting back in
01:18:02shape and let me tell you how yeah you can call them on the phone set them and then meet with them
01:18:07in person so basically you have a set video close okay and when you say so you're when the part that
01:18:13i'm trying to understand is the local gym for office parts like do i need to be part of a gym no
01:18:18you don't need to be a part of it it's just basically just having a place to meet in person
01:18:22in a coffee shop is a little weirder than uh than just having an office that you know like a space that
01:18:27you can go to but like again i can't teach all the things that that you need to go right now and
01:18:34you're like i have to get to 600k like you can do that with almost with very little like you just need
01:18:42you already know how to sell and so getting leads to trust you local is much easier and so it's just
01:18:48schedule i'll meet you at this place you send them a video beforehand and then when they walk in the
01:18:53door floor to ceiling testimonials so okay and then the last question on that would be when it comes
01:18:59to running ads there's so many ways you can do it between like vsl statics with like right videos like
01:19:07what would you say is like the best way to go because i always try to there is there is no best
01:19:12best way i mean the best way is the ad that converts and so there are statics that are converted
01:19:16like right now we're running a ton of statics we're also running a bunch of video um again i'm trying
01:19:21to meet you where you're at right now rather than say like okay this is how we get to 10 million a year
01:19:24this is not how we get to 10. um but there's like no there's almost no moving parts in this thing
01:19:29like the level of creative that you need to have to beat at a legal at a local level is much easier
01:19:34um what what what area do you live in uh the chicagoland area okay so you've got but you've got
01:19:40you've got people there i mean so that's that's a decent sized city so if you drop a pin on the map
01:19:44you'll have um good you'll have like you'll be okay okay yeah because if somebody if you're like
01:19:49in in bumfuck wherever then that that is that i might have actually had to recant my my opinion
01:19:54no yeah it's legit yeah all right well this changes absolutely everything that i've been building
01:19:58for the last six months so i just let's before we light everything on fire that that's half for the
01:20:02audience too um if i if i like had to uh do it and that's and to be fair like i say that because that's
01:20:08whenever i like had to make money in my life when i had none i always did this it's just because local
01:20:14is the fastest speed to money and you have the highest row as locally the issue with local is that it's very
01:20:20it's more difficult to scale right um but in terms of return on ad spend like it's it's much more common
01:20:26to get 10 20 30x returns on local than you are in other markets um because you don't have to compete
01:20:32against all the players and then like that's the advantage okay so before we go light everything on
01:20:36fire okay let's just let's we'll take two breaths all right so right now you currently are doing what
01:20:43i'm currently running only national ads as direct offers through an instagram dm funnel
01:20:49right that has gotten me this month is my best month i spent 6k on ads okay i'm at 77 50 cac
01:20:56um and i closed eight clients so like i've generated 25 front end from that on six you know 6k and it's
01:21:02okay got it yeah it's like a forex row as so when i talked with ed tourney i mean i'm in the vip
01:21:07with vantage he's like dude light light that shit up like make things happen and go all in on that
01:21:12yeah and so my initial thing was going to be here being like hey was was that the acquisition
01:21:18strategy i'm like okay he said light this up i'm running statics to igdm but i'm like do i do that
01:21:24dude if you're running four x then just spend i mean just double it just double what you're willing
01:21:28to spend i mean then you're you're probably fine you're not going to run out of people you're in
01:21:31a way you lost it i mean like you're you can run you can run that and like the next new training
01:21:36is you're gonna need somebody else to do dm sets for you yeah and you're okay with the igdm funnel
01:21:41that's fine instead of trying a different one yeah it's fine um i i say that like i took what you
01:21:46said of like i have to like that is what i would do because i appreciate that but you already have
01:21:51a forex row as funnel and you're spending 6k it's like let's just spend like 12 or 15.
01:21:56um so yeah we're not going to let everything on fire uh no we're going to do both though because my
01:22:00clients want my clients want an in-person place they want a hybrid actually people want a hybrid
01:22:05small gym that they can go to where there's stuff i can run with there you basically so i appreciate
01:22:09that i don't want to take more time but this is helpful thank you okay hold on i want to make
01:22:13sure that we don't we don't we don't let's let's slow down for a second all right you're selling
01:22:19you're running ads nationally but people are not coming to you in chicago correct like you're
01:22:25selling people in missouri as much as i'm selling people all over so initially i only did local
01:22:30word of mouth was huge they loved that i was a local but then again it just it was too
01:22:34expensive with the way i was testing i wasn't good at it i got new to marketing i got you um
01:22:41you finally got something that worked we're not going to change it so i don't think you do both
01:22:46that's why i wanted to like catch you on this like you don't do both and you know put all the stuff i
01:22:49said into like a lockbox of like really interesting alex and so what you have four extra oas you spent 6k
01:22:57now you're going to take some of that you know excess 18k and see if next month you can spend 10 and see if you get a little bit better
01:23:04some of the dm stuff you will in time need one two three dm setters and that can probably take you to
01:23:11well for sure 100k a month um but that was honestly i don't even care about it sounds stupid but like i
01:23:18just want to feed the family and be a good that's for now to do here that's for now and then you're
01:23:21gonna get addicted to the game but i i get where you're at dude i get where you're at yeah all right
01:23:27just don't over complicate this you have a 4x or oas we need to put more into the 4x so that we have
01:23:32a bigger number to 4x all right and just don't get afraid if you had a bad if you have a bad month or
01:23:36something or like you got to stay aggressive on it okay okay everything else i said will apply to
01:23:41somebody else who's listening for you just spend more money on the ads that we're actually working
01:23:45on at the info thanks y'all appreciate it cool
01:23:52tyler what's good what's going on dude what's wrong looking into getting weight loss for moms
01:23:58are you serious dude oh it's like i was like jesus christ dude i do another weight loss business i'm
01:24:04gonna no dude uh um so i sell uh acquisition systems predominantly the igmd igdm funnel to
01:24:13content i literally just saw the thing behind you jesus all right um yeah that's from uh sayo kyle
01:24:24so i sell i sell acquisition systems but mostly the igdm funnel to content creators that have
01:24:29strong organic followings but struggle to monetize their high ticket offer the problem that i have is
01:24:35getting clients consistently amazing results and so the activation point i've deemed is if they hit a
01:24:41record month in their business with cash they seem to stay forever if they don't then it's basically
01:24:46like three four or five months depending how well i can navigate the um the relationship but that's
01:24:52problem running into i keep trying to raise price i keep closing yeah and it's just more painting plants
01:24:57so yeah um it sounds like you just need to nail the first 30 days
01:25:03so basically there's two components one is uh who they are and the second is what they did and so if
01:25:09we have a specific type of avatar that consistently does better and those people do a set of set of
01:25:14things then it's like how do we get only those people to only do those things so that we can get as
01:25:19many of those people like fundamentally gym watch the same concept right which is um our average cash
01:25:24collected for the first two years i think was was thirty thousand dollars the first 30 days
01:25:30using our stuff and then i think over time because uh a cac went up just from ads and whatnot i think
01:25:36like as of right now i think it's something between it's like 15 or 16k uh in the first 30 days
01:25:42um but for us we just knew if we got somebody to close a high ticket sale in the first seven days
01:25:47that like that was the emotional shift as they go from selling you know 500 things or 100 things it's
01:25:51all 2 000 things it's like holy shit you know it's like their whole their whole paradigm changed um
01:25:56and so for you it's probably similar to that and so the the churn bucket it's like something that's
01:26:03just helpful in terms of thinking about churn is like churn feels like this big amorphous monster
01:26:07but it's much more how do i get them to six months like churn after six months of all across all
01:26:14memberships is two percent per month the issue is people look at blended churn between all different
01:26:19cohorts and so they barely get anyone to the six month mark but people past month six they churn at a
01:26:23very very low rate so it's really not how do i cut churn in half it's how do i get into six months
01:26:28it's just a much easier frame to think through and so that means that the first six months need to be
01:26:32very very curated and the three drop-off points are day 30 day 90 and then at six months those are
01:26:37the three points that you have to like drag someone through um and so do you give them the offer to make
01:26:46so so there's two primary people that i work with the first is that they're brand new into
01:26:51high ticket sales and they have a very vague offer them yes the second is like fitness coaches is a
01:26:57great example where they they already have an offer they already have a lot of stuff and i just run it
01:27:00for them better i tend to get better longer lasting results and like better clients from the first
01:27:08but they're technically smaller and i have to do more for them
01:27:15basically we want as much of this to be as turnkey as possible so that there's just fewer variables for
01:27:20them to mess up so the the first group where it's like for example i have a client that had
01:27:29basically he's done like 300k over the first six months and prior to that he did like none and uh
01:27:36he was able to sell like i get him people on his calendar and he can use them and he just keeps
01:27:40increasing price but if they can't sell then it's like well then how many people then then maybe one of the
01:27:47the requirements for working with you is that they have sold someone before
01:27:53does it matter the ticket price if they're typically like i mean if they've gotten something
01:27:58if they've gotten someone to give them money i mean probably just be over the phone i'm guessing
01:28:04so that would probably be the requirement
01:28:09again it's like i want to find the simplest thing that that separates the winners from the losers
01:28:14and then you just re-engineer the funnel to say that up front like you have to have these three
01:28:17things
01:28:21okay you must be so then forego forego the people that can pay in full and like technically a bigger
01:28:28clients are not as good not as good because they don't make as much money
01:28:36um the bar is higher to keep them around longer a lot of a lot of people that have done dm funnels in
01:28:42the past they're like dude two years ago i did 80k in a single month yeah if you don't do that i'm not
01:28:47working with you versus well the other side is like dude i've never sold yeah it's an expectation thing
01:28:52though it's just like yeah two years ago and then what have you done last month in the month before
01:28:56that month before that okay great so let's set let's set appropriate expectations here because like
01:29:00no one cares what you used to bench
01:29:06okay but the question is what's the limiter of the business
01:29:14um the limiter is the pickier i get the harder it is to get customers in the door i mean that's how
01:29:21the less picky i am a lot the less they stay so right now right now customer acquisition is
01:29:32we partner with like companies that teach people how to do dm setting foreign
01:29:36like uh eastern europe and things like that and we have them coming in to call that bound for me
01:29:41so we're sending 3 500 4 000 messages a week to icp and then they go through a funnel show up on my calendar
01:29:51but if they're too big they're either already gonna have a setter or they're uh
01:29:57yeah just not not even to see messages via cold outbound yeah
01:30:07i mean what stops you from doing 8 000
01:30:12yeah we're we're slowly growing that slowly is a is the wrong way we're actively pushing that really
01:30:17hard getting to i mean you sell more units you make them worth more right that's the like that's the
01:30:22game you sell more units you make them worth more like those are the two levers that you have and so
01:30:27if we're not changing pricing anytime soon then we have to sell more units like the 4 000 dms that
01:30:32are getting sent is a relatively arbitrary number in my mind you could have said 100 you could have said
01:30:35100 000 like it's just same same you're not going to run out of people though i promise you that
01:30:42okay so yeah i think you could get more aggressive on that side as long as they have a scalable solution
01:30:47on that side there's like really nothing that stops them which is why i'm a big fan of outbound
01:30:50in general because it scales linearly okay so yeah more cold outbound and then the second piece is uh
01:30:58set better expectations with people that have already done well in the past and the last piece is uh
01:31:03make it more turnkey on the offer yeah and i would probably ask more questions on the application
01:31:12they're they're experienced selling shit actually okay and then you can set expectations which you've
01:31:19never sold dude it's probably going to take you a month to learn how to sell and we're just going to
01:31:23it's okay though because oh no i i yeah oh you mean them selling i was like dude i'd sell no i know
01:31:27i'm saying but them yeah yeah right so you have to just you have to set the expectation
01:31:32like people only leave when the expectations don't match reality so the goal is and this is the
01:31:36this is the push and pull of selling which is you promise really high then you get more closes but
01:31:41people back out because you promise really high right um the perfect world is that they so everybody just
01:31:46buys but then they don't buy at the price you want because you promise nothing and so this is the the
01:31:51the delicate balance if you will i see i understand thank you yeah you bet man i appreciate you mutual
01:32:02all right alex hi alex it's a pleasure to meet you hard to lose a name like that it's a great name um
01:32:10i'm a real estate transaction coordination business so we provide admin support to realtors they only
01:32:15pay us when they actually have a closing okay so we did a million in revenue last year and then we
01:32:21had 250 000 gross profit and i want to get to gross profit in before taxes so you mean net profit
01:32:32net profit thank you i'm still learning no you're good it's like before that no that's that's not all right
01:32:36cool all right yeah um so 250 before taxes and everything um i'd like to get to four million
01:32:42because i'd like to be at one million cool yeah the problem is um every sale in the business comes back
01:32:49to me so me going out to events meeting realtors everything and so i'm not sure how to continue to
01:32:55scale when there's just one of me i don't think it makes sense to bring on like an sdr or anyone to
01:32:59actually replace me in sales for a while um 70 of the business is because of me going out building
01:33:06relationships about 20 percent of my new business comes from organic social and 10 is miscellaneous
01:33:12other sources how do i scale we need more of something yeah and you're at the point where are you local
01:33:25you're local right yes yeah so local is the only exception i have to the single channel concept that
01:33:31i have um because there's only so many people that you are relative not not super constrained but you're
01:33:37relatively concerned by the size of the market that you're in right um what area you live in i'm in the
01:33:42twin cities but we also do wisconsin okay i'm open to expanding as well you know well is the service
01:33:49remote yeah 100 percent hmm hmm well that's interesting are there laws that are different between the different
01:33:59states in terms of filings and whatnot there are so but they're all pretty much the same but there are some
01:34:05small differences the thing is is um i don't know if you heard earlier when i was mentioning about the
01:34:09local weight loss stuff um running local ads is like really easy okay um i don't think you'd have
01:34:19that much trouble running local ads or even just like statewide ads when i say local right it's like
01:34:24minnesota realtors we centralize we do all that like literally just state the offer because i i haven't
01:34:28actually heard of that many people who do what you do and like i see real estate companies like all the
01:34:33the time um and obviously sherrod's my partner so like i'm tangentially touching that role all the
01:34:38time um i think like if you wanted to get from one to four you either have to be significantly more violent
01:34:46on your basically you would have to do nothing but go get business um but what you're what you're lacking
01:34:53is a point of leverage and so from getting more for what you put in and so we'd probably want so
01:35:00we'd probably want your calendar just be filled with appointments and all you do is close and then if
01:35:05you did that you probably get to four um what's churn on the realtors who work with you 14 annually
01:35:12yeah an interesting strategy you can do is just look at the mls and then look at the top you know
01:35:18the top people by volume um and you probably have an idea of what volume customers like you know do best
01:35:24because over a certain size they have their own team and whatever um and then i would probably look at
01:35:30some sort of cold invite uh to them and maybe do like a a webinar uh to them that would be like the
01:35:37cheapest thing you could do and then all you have to do is just confirm them basically like you just
01:35:40blast them right so it's like email fall call text follow up um to get them to a small group
01:35:46uh you know call it presentation um and then present the thing or you could do it one-on-one but i think one
01:35:52to many would give you a little bit more leverage but either way we need leverage in this we need
01:35:56leverage in your acquisition right so it's like you're going to post content would be a way but
01:35:59you can't serve the states outside of you know minnesota and wisconsin so it's like i don't know
01:36:03if i want to do content per se we could but like let's maybe not that so we could do ads or we could
01:36:08do outbound as our two kind of higher leverage acquisition channels that we can pick from if you feel
01:36:13better with ads and we can do ads but either one works that's kind of my point yeah so it's just pick the
01:36:18one that you feel most comfortable with roll forward with it see the results if that doesn't work then
01:36:22pivot to the other one yeah local ads aren't that tough they're they're they're because the targeting
01:36:26is already taken care of right so you have the geo targeting and then you put the call out in terms
01:36:31of who you're looking for and it's like it's pretty straightforward minnesota realtors like it
01:36:36it's pretty pretty obvious and so if you wanted to what would i do i'd probably run it by city
01:36:43so i'd probably run call it like instead of running the state i would probably run twin cities is number
01:36:50one i would have i don't know the other cities and just one okay yeah whatever yeah whatever the
01:36:56other cities are i would run i'd run called 50 mile radius ads uh from there because then it'll appear
01:37:01hyper local and if you are there then you might meet them first if you need to close um what's your
01:37:05sales velocity right now in terms of number of uh new customers so i signed 73 new customers last year out of
01:37:12last year yeah got it okay so close rates fine um i mean it is contingency based so that's that's nice
01:37:18you just don't want people who aren't doing any volume because it's just pain in the ass exactly
01:37:22right and so i would just say like realtors who sold over four homes last year okay yeah um what would
01:37:28you recommend spend wise um right now i only spent like 8 000 last year for all of marketing and events
01:37:33i've never spent a dollar in ads where would you start if you were me uh we have to look at ltv
01:37:40right so what do you make per customer per year um there's a big big gap so our average is 1 600 a
01:37:49year but like my top 24 clients was 22 000 on average yeah so what we have to do is make sure
01:37:55that the requirements are towards the top end so when you put the call outs it's like you have to be
01:38:00clear you know uh have to be realtor have to be you know doing at least four or you could say the
01:38:05production volume whatever either way if you're doing over uh i mean probably a million i don't know
01:38:12in production that's probably what you need as the true minimum you can make it five i mean it's kind
01:38:18of up to you um okay i would start higher and then if you don't lower it rather than starting lower
01:38:26yeah because you might be surprised you might be surprised so maybe start at five million or 10 million in
01:38:30production um and then the nice thing is that you're local so like you could probably just run it
01:38:37straight to a video in a scheduler and then just call them as soon as they book and you can still follow
01:38:42up with all the other leads anyways uh in terms of spend it's it's always directly related to lifetime
01:38:47risk profit and so you should if they're doing call it over a million in production that's probably like
01:38:55two or three houses uh so that means that as soon as they get the first sale you should be able to like
01:39:00i would target trying to get paid back within six months or less it's just the nature of the business
01:39:04you're in the only other consideration i have what's the gross profit
01:39:11so we had 250 000 profit before taxes and expenses and then i had 40 before taxes and expenses what's that
01:39:17mean so um snowy day fund so seasonality here in minnesota you're gonna love this um i have to stash
01:39:24away cash to pay my team in quarter one because they're all w-2 employees in order to get us to the
01:39:29busy season okay yeah got it so that was or like after saving up for the snowy day fund it was 40 000 cash remaining
01:39:42yeah you're thin right now i just raised prices um i don't like yeah
01:39:55there's some risk right and so outbound is cheaper
01:40:01outbound is cheaper okay and so that might be where i would start okay i'd probably start with outbound
01:40:08so basically cold call cold email text uh those realtors um that's probably the angle that i would
01:40:14go with because i don't still want you to i don't want you to risk the nest egg that you have right now
01:40:18i do think you should probably raise prices and i would look hard at costs because i'm i'm betting
01:40:21you're underpriced because if you're contingency based if you're contingency based and you're running
01:40:2725 margins like you're taking a lot of risk on as a business owner as says we we are i'm the highest
01:40:32in the market right now and i do intend on continuing to raise up it's i'm looking at the offer i'm
01:40:37coming out to one of the offers uh workshops yeah yeah just to see how do we differentiate because
01:40:42right now it is it's a total red ocean we all offer the same thing it's commoditized and yet
01:40:47yeah like i'm still getting people my my signing rate's still great i would just i would go outbound
01:40:52i would probably start with outbound because assuming it'll be cheaper for you you'll have
01:40:56more more reps of iteration before like wanting to spend on ads because you will lose that money 100
01:41:01for a minute before you figure it out all right thanks alex appreciate you all right i'll let you
01:41:06the you're the you're the uh i think the last the last of the brohicans how are you mr alex my name
01:41:13is ali how's how's your monday good for monday what's cooking um so
01:41:21my question is about strategy all right i first so i was a regular employee i took over
01:41:27manage the restaurant and um in about a year i doubled that restaurant and we had a very good profit
01:41:34sharing deal great so thankfully you know um would you do double it you run ads or what
01:41:40uh i just ran the basics actually okay like very simple fixed fixed prices mainly actually increased
01:41:47prices took your advice on that but uh fixed prices fix the you know cost inside improved recipes just the
01:41:55basics i didn't do anything crazy actually i know nothing about ads actually with restaurants the restaurants
01:41:58the restaurant is old so fine yeah um so now i'm actually operating three restaurants with um with
01:42:06those so i have two co-owners and um so i i'm on a profit sharing deal an amendment deal with
01:42:13in two of the main restaurants and then there's a third one that i own a little bit of it not a little
01:42:17bit like a substantial amount of equity in it like more than a third okay um doing well things are moving forward but
01:42:24i don't see those concepts scaling and i'm kind of tied down as to
01:42:33what i should do in the future i spoke with ed he suggested i go all in on a port location all by
01:42:37myself so i can retain all the equity yeah um it's pretty tough because um good income right now
01:42:45uh so i don't want to kill all the cash coming in as i what do you want
01:42:52what do you want um i want to build a very a big restaurant chain um built around a healthy concept
01:43:02but still very good food maybe a billion dollar enterprise value fast casual it may be a billion
01:43:06dollar right just that's my goal yeah we call that a casual billy savante um okay
01:43:16all right so fast casual is what you're you're focused on i'm in fast schedule we do we do potatoes
01:43:22we do burgers we do fish we do chicken i know like i know a fair bit about those yeah you're you're gonna
01:43:27want to you're basically going to need to enter the franchise world not have to um that's not true you
01:43:33don't have to enter the franchise world i don't want to say that but the key to those models is huge
01:43:38simplicity and nailing the very limited things that you have on the menu like i think the absolute
01:43:46like i don't know have you studied chick-fil-a oh yeah yes have you studied raising canes sure thing
01:43:53yeah like those 12 12 item i was actually watching your video about this couple days ago yes so i didn't
01:43:58recommend you yeah like those guys need to become your your you know your restaurant heroes like you
01:44:05need to just only consume the stuff that they put out but it's all about radical simplicity um
01:44:13you can absolutely become a billionaire in the restaurant space there are
01:44:18there are there are people who have done that um and in the fast casual space there are um
01:44:25just after 45 years yeah it's gonna take time i mean like you know sorry it's not gonna be a six
01:44:30year billion dollar exit man you know there's only you know there's only three thousand billionaires
01:44:35on earth out of eight eight billion so you know whatever um
01:44:42i think the advice that i gave is is sound what it comes down to is you need to
01:44:47you need to nail the model okay like you've learned from these three stores you've learned from these other
01:44:51people you have to have a unique model that is as simple as humanly possible which is what like you
01:44:58have to build you have to build it day one for scale okay so that's actually what i'm working on i've
01:45:03acquired a fourth location now i'm also in trouble in in like trying to figure out what to do with my
01:45:08co-owners and the other three places because they do take a little bit of my time yeah and you know i own
01:45:12no equity and two of them yeah good you know good property but no do you have the i mean you will
01:45:21the goal will be to fire them as fast as you can okay okay so you can focus okay because you're not
01:45:29going to side hustle your way to a billion dollar it's yeah stuff i mean i'm already trying just for this
01:45:34week yeah i mean very little sleep yeah yeah i mean you can't it's like it's not a thing right and so
01:45:42um i think the fourth location is fine build it as well as you possibly can try to nail the model
01:45:49once you nail the model we'll probably have another conversation which is just are we going
01:45:53to scale this privately or are you going to franchise it franchising works better for food businesses
01:46:00because they literally are recipes and you can you can standardize the outcome much more easily than
01:46:05you can with like a service business which is why service business are hard plenty of people do
01:46:08franchise them but they're just much harder to franchise um because you have to sell basically
01:46:12arbitrage on labor so yeah i think as like as soon as you can i would go all in on the fourth location
01:46:21make it your main thing so quick follow-up so i'm gonna focus on the fourth location whenever
01:46:27as soon as i can um my time i was getting you know a good return on my on my time and then i'm going
01:46:33to have those let's say 70 hours a week to focus on the fourth location what's the best way to spend
01:46:38those 70 hours i'm not going to be you know as little operationally of course more building but
01:46:43in the fourth yes i'm going to be there of course but you know yeah i would i would for sure be there
01:46:52you need to understand where every fry goes you know what i mean like it has to be
01:46:56like you need to know that thing like the back of your hand so that you can really make sure them like
01:46:59that you don't have a single square foot extra that you don't need like what we're what you're
01:47:03going to be building towards is return on invested capital that is going to be the metric that you'll
01:47:10need to optimize around and payback period so just like you have a payback period for a customer
01:47:16when you chunk up a level to the business side it's it's payback period per location
01:47:21and so if you spend a hundred thousand i'm making simple math a hundred thousand dollars to open a
01:47:25location if you can get that hundred thousand dollars back in three months then it's like great
01:47:30i can open another location right and so if it takes you three years to get it back it's gonna be very
01:47:34hard to scale this thing right which is why you need to really really aggressively control costs
01:47:39um on the build out but also on the day-to-day in terms of like how few people can i use to make this
01:47:44run um and i'm telling you you got to study the hell like raising canes right now like he's he's the best
01:47:52in the game right now in my opinion yes like just everything that he puts out which is so little
01:47:58which is a pain but everything he puts out that would be the guy we're doing beef talo chicken actually
01:48:04very close so yeah just i mean as simple as possible as few ingredients as you can smallest you
01:48:11know footprint you're going to drive through yes yes we don't have it all right and then it's
01:48:18going to come down to location picking and then like no and then crushing the grand opening
01:48:23that's the big thing i don't know much about that well i'm sure you need to so brick and mortar
01:48:28comes down to return invested capital like i just said you need to have a a career path structure so
01:48:33that you can have some sort of called pseudo ownership of each individual location see if somebody who
01:48:38feels like an owner who's worked there like chick-fil-a has mastered this um and you need
01:48:42to have a banger grand opening strategy like these are the things that are required in order to make
01:48:48uh brick and mortar work at scale because remember i said that payback period thing yes if you if you
01:48:54crush the grand opening you can pull forward the payback period so you can start opening the next ones
01:48:58makes total sense cool and i'll give you one more thing which is just that once you do the grand
01:49:04openings we should be able to sustain the store off of word of mouth because food the margins are so low
01:49:13there's obviously little things we can do but like the margins are low enough that we should we should
01:49:18be good enough the chicken should be good enough that people eat the chicken want to come back tell their
01:49:21friends about it so it's like we want to spend the marketing up front so that we have enough people
01:49:26to try the food and tell their friends that the people who churn out are equal to the amount of
01:49:31people who come for the first time and then it stays at that capacity and then it keeps them printing money
01:49:36makes total sense appreciate you thank you thank you alex we appreciate you all right appreciate all right
01:49:44let's go so is that fun that was my first of my uh the first of our of our 30-day countdown of uh
01:49:53answering as many questions as i possibly can do a guinness world record of of question answering
01:49:59we had a lot of weight loss today okay so let's see here i think i think that was good for day one
01:50:09how'd you guys like it let me look at let me look at the chat real quick um anyone in the comments
01:50:14who's a millionaire yeah there's probably people in the comments josh um there's a lot of but
01:50:19all my stuff uh by the way it's funny because like i guess millionaire versus million dollar business
01:50:23owners that's a good delineation you help companies how to build real estate system that is a bit that
01:50:30is a bit open-ended uh wow all right wish there were more breaks between people yeah you know what
01:50:37that's something that we could probably do on our side that's a good piece of feedback
01:50:40um what cane did you say was the best raising canes is the is the guy who's really really good he's
01:50:45unbelievable he's a deck of billionaire now owns every location outright really impressive
01:50:50uh love the format okay cool uh not even trying to run a business okay you sell chatbot how do you
01:50:58scale um use the chatbot to sell more people uh scaling clothing brand suggestions partner with
01:51:05a gigantic influencer who has a good brand um how can i stay start being more disciplined um just start
01:51:12uh-huh do you think dropshipping is a good business model no but i think it's a good way to get started
01:51:18and learn how to do stuff and make some money typically doesn't scale um
01:51:25all right now we got a lot more a lot more a lot more preguntas in the chat what do you do if you
01:51:29don't know what to do you build capacity you sleep well you get in shape you save your money
01:51:36you build capacity so when the opportunity does come you can go all in how do you build a soap
01:51:42production facility man i i would never if you're like what questions am i going to get if i had to
01:51:46like answer if i put the first hundred building a soap production facility would not have been
01:51:50on my hundred list how do you scale house flipping really good question um the people who i have seen
01:51:57who do well there um basically become marketing companies uh nationally for flippers as in they
01:52:04do lead gen and sometimes get percentages of deals uh how do you scott scale an online school quickly
01:52:13ads and have a good product when do you know you should hire a worker when you can afford this is
01:52:20actually a really good question i'll answer this question because i think it's i'll take this will
01:52:23be my my meteor question for from the chat so when do you hire your first employee there's
01:52:31you either have to borrow the money from the future or you have to use cash flow from today
01:52:36to get to be able to afford that employee right and so then the next question is with the time
01:52:42that this new employee affords you are you able to generate more and ideally four or five times what
01:52:49that employee has is covering for you right and so let's say i've got a business that does two hundred
01:52:54thousand dollars top line uh you know a hundred thousand dollars in profit if i if i hire somebody and
01:53:00let's say it's a you know call it a minimum wage or minimum wage plus it's like maybe it's thirty thousand
01:53:04dollars a year uh so i have 70 left if that 30 can give me half my time back right then it's like
01:53:11maybe i can get another hundred thousand dollars on top of it so i'm still getting a return on that time
01:53:15right and so the idea is it's a continuous play of arbitrage as an entrepreneur to
01:53:22trade the lowest things on your calendar that are taking your time for the highest value things on your
01:53:29calendar that make you the most money and that trade just literally never ends and in the beginning of
01:53:35a business it's almost entirely promotion driven meaning you have to let people know about your stuff
01:53:39and you have to get them to give you money once you have that then over the long term it's about how
01:53:45good the product is and so it's kind of interesting because the things that it takes to help you start
01:53:50often is marketing and sales because if no one knows about your stuff you're not going to make any
01:53:53money if you can't get them to give you the money you're also not going to make any money
01:53:56but it will be difficult to scale because you're always going to have to find new people
01:54:00rather than have the people that you found originally keep wanting to pay you and so
01:54:04john paul de jorio said this really great quote that i like he said you want to be in the resale
01:54:07business not the sell business right which is that you don't always have to get new customers
01:54:11and this is again one of the pros and cons of educational businesses is that
01:54:16they are higher margin because the value of education is super super high and it's an intangible
01:54:21thing right and so you can charge a lot for it because people want those skills and people
01:54:25can't lose those skills once you have them so that is why education is valuable and i'm only bringing
01:54:29this up because we had a bunch of education business today the downside is that once someone learns it
01:54:33there's very little value that additional education confers unless it's something different or something
01:54:37better that you're educating them on right and so you ideally want to build businesses that have
01:54:42consumable value meaning it's value that they need every single if your trash removal like they still
01:54:46need their trash removed tomorrow if you're cleaning they still need cleaning tomorrow if you're making
01:54:50you know editing videos like darina earlier it's like they still need more videos edited so there's
01:54:53consumable value there that's and that is what a recurring service uh is structured as now where
01:54:58it gets more difficult is that in a recurring service for stuff that people already do then it can be a
01:55:03commodity because other people also do that recurring service and so then it goes into the other variables
01:55:08of value which is how can i establish that i am better at it in a meaningful way which comes down to
01:55:13tracking the data of your customers so you can demonstrate that compared to your competition how can i do it
01:55:17faster from the time that they buy to the time that they get and then faster from the time that they get to the time that they
01:55:23that they're looking for and then from an ease perspective like what are the things that my
01:55:27competitors are forcing them to do that they don't want to do uh that i can remove from them and to
01:55:32like right now is very right for even knowledge service businesses uh because people are like don't
01:55:38start a a knowledge-based business because of ai sure uh but there is also a window of time right
01:55:44now and you've got to make money so it's not like oh i'll just not try at all right it's like start and
01:55:49you can use the money and use ai to make more money because there's this i there's this fallacy of a
01:55:56perfectly informed market that everyone knows everything and prices are perfect which is not
01:56:00reality and so there are plenty of people who are not techie who again you don't need to you don't need
01:56:06to tell anyone you're using ai you just need to do the service and use ai and do it more competitively
01:56:11than people who are not using it which are the older more entrenched players in the space whatever
01:56:15space you're getting into and so this question originally started with how do i know who to hire
01:56:20but it just comes down to we have to trade the least valuable time that we have for the most valuable
01:56:24time and as long as we can make a good margin on the time that we're trading it is worth it now the
01:56:29difficulty when we hire somebody new especially when it's your first hire is that you're gonna have
01:56:32to train them well and so what i would encourage you to do is you have i'll call it two schools of
01:56:39thought the more advanced you are as a business owner typically the more you'll hire higher high up first
01:56:45and then lower later but the reason that that is something that a more advanced business owner will
01:56:50do is typically because they're not starting from true scratch right and i say this as somebody who
01:56:54started from true scratch and started with low skilled labor as the first hires because this is all i could
01:56:58afford but when you see sometimes these uh you know investor-backed companies they can get three four
01:57:03five six people in the quote the founding team who are all studs and as a result the overall culture
01:57:09and caliber of the talent that that team can attract is much higher but the debt that you incur as the
01:57:15entrepreneur is that you either give up equity to the investor or equity to the co-founders uh and that
01:57:20is permanent and you have to make a very good judgment call and oftentimes you get it wrong
01:57:23right and so this i mean if you're like man all these paths sound difficult it's like that's just reality
01:57:28and the reason that you get compensated above normal is because you take above normal risk and and this
01:57:34is a big one that i think a lot of people in the world don't understand is that once a business works
01:57:38what people do not see is the four businesses you had beforehand who did not work that you learn the
01:57:42lessons from and so if your business isn't working as well as you as you wanted to i would use what i
01:57:47started today with which is do i need to apply sandpaper which is it am i just rounding out the edges
01:57:53because things are going okay and it didn't go better or is this completely averse from the goals that i
01:57:57have and there's no way that i can see that i'm going to get to where i want to go and i must
01:58:00change the way i do business and so i think both of those are decisions that you have to make at
01:58:05different points in your career um and call it wisdom if you want um is knowing the difference and so
01:58:11with that i appreciate you all love you mean it i'll see you guys tomorrow we're doing one tomorrow
01:58:20all right rock and roll let's slay be easy all right bye
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