Alex Hormozi Answers Your Questions

English

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

Description

Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yt-d Reddit AMA: https://www.reddit.com/r/alexhormozi/comments/1ut1tto/i_am_alex_hormozi_founder_of_acquisitioncom_ask/ If you’re new to my channel, my name is Alex Hormozi. I’m the founder and managing partner of Acquisition.com. It’s a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I’ll give you some stuff you can google to verify below. How I got here… 21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job. 23 yrs old: Left my fancy consulting job to start a business (a gym). 24 yrs old: Opened 5 gym locations. 26 yrs old: Closed down 6th gym. Lost everything. 26 yrs old: Got back to launching gyms (launched 33). Then, lost everything for a 2nd time. 26 yrs old: In desperation, started licensing model as a hail mary. It worked. 27 yrs old: "Gym Launch" does $3M profit the next 6 months. Then $17M profit next 12 months. 28 yrs old: Started Prestige Labs. $20M the first year. 29 yrs old: Launched ALAN, a software company for agencies to work leads for customers. Scaled to $1.7mmo within 6 months. 31 yrs old: Sold 75% of UseAlan to a strategic buyer in an all stock deal. 31 yrs old: Sold 66% of Gym Launch & Prestige Labs at $46.2M valuation in all-cash deal to American Pacific Group. (you can google it) 31 yrs old: Started our family office Acquisition.com. We invest and scale companies using the $42M in distributions we had taken + the cash from the $46.2M exit. 32 yrs old: Started making free content showing how we grow companies to make real business education accessible to everyone (and) to attract business owners to invest or scale their businesses. 34 yrs old: I became co-owner of https://Skool.com, which is a platform for people to build communities online, making a living doing what they love, with people like them. 36 yrs old: I did a $106M book launch selling 3.6M copies of my $100M Money Models book, in 72 hours, breaking the Guinness world record for the fastest selling non-fiction book of all time. Today: Our portfolio now does $200M/yr between 10 companies. The largest doing $100M/yr the smallest doing $5M per year. Our ownership varies between 20% and 100% ownership of the companies. Many of them we invested in early and helped grow (which is how we make our money - not youtube videos). To all the gladiators in the arena, we’re all in the middle of writing our own stories. The worse the monsters, the more epic the story. You either get an epic outcome or an epic story. Both mean you win. Keep crushing. May your desires be greater than your obstacles. Never quit, Alex DISCLOSURE Information shared here is for educational purposes only. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary. Copyright © 2025.

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