Transcript
00:00:00This is Corey. Corey runs an HVAC business with his wife doing over $1.2 million per year in revenue.
00:00:04But number one, that $1.2 million isn't all profit. And number two, he has $60,000 in debt that he
00:00:10wants to get rid of. I'm Alex Remozie. I own acquisition.com, which is a portfolio of companies
00:00:13that did over $250 million last year in aggregate revenue. We have several service rate businesses in
00:00:18our portfolio, so I've done a lot of thinking about the problems that Corey's dealing with.
00:00:21And so first, we're going to deep dive into the business, and then we're going to break
00:00:23down all the tactics that he and you can use to scale. And at the end, we're going to check in
00:00:27with Corey one year later. Originally, we were doing about $1.25 million in sales. Currently,
00:00:32see if the tactics actually helped him scale his business. So let's meet Corey.
00:00:35What's going on, Alex? My name is Corey. What's up?
00:00:39I own ProShine Professional Cleaning with my wife, Nicole. We are an HVAC cleaning and
00:00:43ductwork repair company. What problem are you trying to solve?
00:00:46So right now, we're allocating about 10% of our profit going towards paying off some of our debt.
00:00:50How much debt you got? It's about $60,000.
00:00:52Okay. And then lead generation. We're trying
00:00:55to get higher quantity of leads and also leads that are higher value clients. On the bottom of
00:01:01that is just to really just help our client with our booking process. I think that we can streamline
00:01:06it a little bit better, make it easier on them, and then also not lose out on the possibilities
00:01:11of upsells or anything like that throughout that process.
00:01:14Why is solving this important? What happens if you don't fix this?
00:01:17First and foremost, we're a people company. So we really go out in the community and just do
00:01:20the right thing. And I'm grateful to have guys on my team that really share that goal. It makes our
00:01:24life a lot easier. That's why it's important to us so we can help more people and then also
00:01:28grow our business. All right. Awesome. Okay. So how do you make money?
00:01:31This is actually where ProShine's a little bit unique. For our HVAC cleaning, full-end price
00:01:34for us is $15.75 per HVAC unit. Okay.
00:01:37Each house we do has about two units. So with that $15.75, we have a two-year growth-free guarantee.
00:01:44What that is, is when we come out, we make sure that we're disinfecting that ductwork properly,
00:01:48killing any kind of bacterial growth. So clients love having that guarantee in place so that they
00:01:52don't have to worry about it in the future. And then we have ductwork rewrapping, which is pretty
00:01:56much replacing the old insulation. And then also our dry vent cleaning, which is $175.
00:02:01Do you show customers pictures of the inside of their vents?
00:02:05Yep. Absolutely. So actually we have a customer profile so they can access any point in time. So
00:02:10if they want to sell their home, they can use it as an advantage for them.
00:02:13I like that. Where do you get your customers?
00:02:15All right. So we have a couple of different channels. 60% come from paydads. 3,000 a month
00:02:19go from Google. We actually just up that a couple of days ago to 5,000. And then also 650 from
00:02:25Facebook. Facebook is very new for us. We just started the last two weeks. And then 15% of our
00:02:30job flow comes from a local SEO, which is a third-party company. And then affiliates and
00:02:35referrals are a very big portion for us because we are partnered with a lot of HVAC companies in
00:02:40our area. One of them actually sends us about 30K a month. So we really just want to replicate what
00:02:45they have going on and then share that with our other partners.
00:02:48So what's the advantage to that affiliate sending you the 30,000 a month?
00:02:51We actually send them back roughly four to 45,000 because they have higher ticket items. So
00:02:56when they go in, they're doing full replacements where we're doing some patchwork and some cleaning.
00:03:00Say they send us 20 leads, we'll send them maybe four or five,
00:03:05but they make double what we would sell. So Corey has a unique affiliate strategy,
00:03:09which is that he purposely limits his own services so that he doesn't compete
00:03:13with other businesses in his "space." And so he refers them, the high ticket business,
00:03:18but then they refer him some percentage of their business. But the beauty of this model
00:03:23is that he's able to do this with tons of high ticket providers so that he has almost
00:03:28limitless lead flow of people coming towards him basically for free.
00:03:32So give me whatever other numbers you think I should know.
00:03:34Our number is right now 1.25 million over the last 12 months. Profit on that is 479,000.
00:03:41Our net margin is 38%. So our marketing spend right now is just under 7200 as far as our
00:03:47marketing strategy altogether. Our show rate actually, funny enough,
00:03:50is 99% because it's the 1% that the client just happens to not be home where they
00:03:54forgot about our appointment. And then our close rate is 82%.
00:03:56If we double the lead flow of the business, can you handle that?
00:04:01Yes. So actually we just hired on two more employees and we just got a third van.
00:04:05Right off the bat in every business, I think the first problem I try to delineate is this
00:04:09is supply-constrained business or demand-constrained business.
00:04:11Meaning if we can double the lead flow and they can handle it, then it's a demand-constrained
00:04:15business. If we double lead flow and they can't handle it, then it means that we got to go build
00:04:18the resources and infrastructure to be able to handle a double and lead flow in the future.
00:04:23And I think this is such a common thing that I see with business owners. They're trying to
00:04:26fix a problem that's already a problem that if you fix it, makes your existing problem worse.
00:04:31I got a bunch of notes. I think we might be able to help you get more people,
00:04:34more impact and more clean air. That's what I'm talking about.
00:04:36All right, let's do it. There's nothing majorly wrong. And so that's the good news. And obviously
00:04:40you have 38% margins you're growing. The last thing I want to do is break something.
00:04:43Right.
00:04:43And so I think this is going to be a game of incremental improvement.
00:04:46Right.
00:04:47Like no Hail Marys. This is just consistent yardage.
00:04:49Press the process, right?
00:04:50Yeah. Number one, I think that there's actually still some more room for pricing. Number two,
00:04:56let's talk about the debt. Number three, let's talk about the affiliate piece.
00:05:03Four, we'll go funnel conversion rate optimization. And then five, we'll go ads.
00:05:08Perfect.
00:05:09Six, reactivation. Emails.
00:05:13Corey's at stage five on the $100 million scaling roadmap. He's at productize. So he's got 10 to 19
00:05:19people who work in the business. She's got maybe two or three people in the business that are kind
00:05:22of like manager leaders that are running this thing. Now, some of the issues that he's dealing with is
00:05:26that customers are having nothing else to buy and churn. We have to figure out how we can get more
00:05:29repeat business for the business. His qualified leads are too expensive and cap your ability to
00:05:34advertise. And so what we're doing is we're trying to improve the throughput on his existing
00:05:38advertising process so that he can get more leads because he can handle more leads. We're creating
00:05:43more sales materials, tweaking pricing, sales process, creating a CS playbook. All of this stuff
00:05:47is the things that happen all the time at the productize stage. And so if you're like, shoot,
00:05:52that's almost exactly what he's going through. That's because businesses behave in patterns.
00:05:57And so if you're not sure what stage of business you're at, this scaling roadmap is 100% free. You
00:06:03can go and get it at acquisition.com/roadmap and put in your business details. And on the thank you
00:06:09page, if you would like our help actually helping you de-bottleneck these things, kind of like what
00:06:13I'm doing with Corey here in person at my headquarters, on the thank you page, just schedule
00:06:16a call. My team would love to have a conversation with you. Worst case scenario, we provide value.
00:06:20Best case, we'll see you out here in Vegas. So first things first, the price. So you did a 23%
00:06:24price increase after the first time we talked to you. And so that resulted in a higher close rate
00:06:28and more money. Wonderful. So Corey had actually come to one of our workshops at acquisition.com
00:06:34earlier, and we had made this first initial suggestion, which is like, hey, bump your prices.
00:06:37And he obviously saw a big improvement, right? He was able to charge more and close more. And the
00:06:44reason we made that recommendation is because we looked at businesses in that space and we're like,
00:06:48we think you're mispriced. Some people might be like, how could you raise prices and close more?
00:06:52Well, let me explain. There's two scenarios where this could be true. One is something called a
00:06:56Veblen good, which in economic terms is usually like a high-end luxury item. So like a Rolex,
00:07:01sometimes if something goes up in price, it becomes more sought after. That's not what happens for Corey
00:07:05because he's in the other bucket, right? No one's like bragging at their rotary club about how much
00:07:09they spent on their HVAC. So instead what happens is that if you have what I would consider a normal
00:07:14business providing a normal service or product, if you raise your prices, what sometimes happens
00:07:18is that the conviction of the customer that you can actually deliver on the promise you're making
00:07:21goes up. And so on the value equation, which I'll talk about in this book, it actually increases the
00:07:27perceived likelihood of achievement. So by raising the price, we actually increase the value. And this
00:07:33is why I talk about charging premium prices. Page 48 in the offers book, I talk about the virtuous
00:07:38cycle of pricing. And so what happens is if you raise your price, you increase the emotional
00:07:42investment, you increase the perceived value, you increase the results, and you decrease the
00:07:47demandingness of the customer. You get more money to actually deliver. And so what happens is a lot
00:07:51of times people will just try and like, ah, they're so afraid of charging money that they actually
00:07:56sell themselves out of a sale because it's so low price that they're like, gosh, this guy seems like
00:08:00a run, you know, a super seedy duct tape operation, right? And so many of you, especially newer
00:08:07business owners, I'd say like sub call it three, sometimes 5 million in revenue. Some of the biggest
00:08:12levers that exist in the business is simply charging more because people actually believe you can deliver
00:08:16the service now. So whenever I hear 80% or over 80% close rates, I usually know that there's room and
00:08:21so basically what I penciled out was a 10% price raise. This is more asking than telling. We would
00:08:26have to believe that we're not going to drop to 65%. As long as we close more than 65%, we make
00:08:31more money. Thing is, is that 10% price raise for you equals roughly a 25% increase in net profit.
00:08:37Right. So that'd be roughly a hundred plus thousand a year. And that's at last year's volume in profit.
00:08:42So that's number one. Does that sound something like something that you could stomach or no?
00:08:46Yeah. A hundred percent. So the second thing is how fast do you plan on paying off the 60 K debt
00:08:50that you have? We are planned to pay off completely in the next four to five months. Okay, good. That's
00:08:54one of those things that like, I would say this is more of an emotional thing, but it's just this back
00:08:59of mind thing. If there's a range of like Dave Ramsey and then like, you know, Wall Street,
00:09:04I tend to skew like very close to the Ramsey side. And the single argument that I have around it is
00:09:09basically debt increases risk. Risk when multiplied over a long time horizon tends to come due. And so
00:09:16like businesses have seasons, they have volatility. And why did I take the debt out to begin with?
00:09:21A lot of times it's like, cause I wanted to grow faster. You know what I mean? If you look at some
00:09:24of the most enduring companies, a lot of them like Chick-fil-A operate debt-free. Let's do ad stuff
00:09:28first and then I'll circle back to affiliates. So let's pull up the page that the Google ads are
00:09:33going to. Right now, this is where the ads are going, right? Now, what most people are probably
00:09:37doing is they're clicking the button on the top, right? If they're desktop or if they're mobile,
00:09:40they're probably clicking the button right there. It's almost like having two landing pages in a row.
00:09:44And so you might not know this, but like typically you'll lose about 50% by like half. Just for every
00:09:50step you add, it's usually about half or more that you lose. Can you shrink that to mobile just so I
00:09:54can see what it looks like on mobile? Okay. That looks a little better, but what I'd want to do is
00:10:01like, I want that to just be a headline. I don't think the pro shine, et cetera, stuff that like,
00:10:05see how it's kind of like messy. There's a lot of stuff going on. So I tend to just either really
00:10:09shrink the logo. So it's like a very small because it's literally the prime real estate is everything
00:10:13that's above this fold. And the first thing someone sees is the top, which right now is like a lot of
00:10:17blank space, right? So I would probably wipe that probably that button. So it's just the hamburger
00:10:21menu and the pro shine that'll massively shrink the top bar. You have the home and then the site nav.
00:10:26You can drop that. We want to basically build a specific Lander for ads, which isn't the homepage
00:10:31because this page, it serves one function, which is conversion. We actually don't see an offer.
00:10:35Keep scrolling. Yeah. And so this is actually where the conversion happens. So we're losing a ton of
00:10:39traffic going to the top. Oh yeah. The basic level of this is like, let's just have this offer clear
00:10:44and then eliminate all the other stuff on the page basically. So let's go to the edge real quick. I
00:10:49think the one takeaway that I have there is you have more opportunity to spend. Absolutely. So like,
00:10:54I think that at the very least we'd be like, we just want to continue to spend month over month
00:10:58provided our ROAS and our CAAS stay more or less the same. And the fact that you're already at 13
00:11:02to one upfront and that's with like what I would consider like a pretty unoptimized page, like that
00:11:07might double to like 26. The changes that we do in the funnel, you might be able to go from like 5,000,
00:11:11like 30,000 a month in spend. Right. Which be sweet. Yeah. Right. So let me ask you a question.
00:11:16If for every dollar you gave me, I gave you $5 back, what would your budget of dollars that
00:11:22you'd give me be? If you answer that correctly, the answer would be as many dollars as you possibly
00:11:26could. And then once I give you more dollars back, you take those more dollars and give those more
00:11:29dollars to me. And then I give you more and more dollars back. And fundamentally that's how good
00:11:32advertising should work. And so it's interesting is that there's a lot of businesses that you've
00:11:36probably seen multiple on this show where you'll see somebody getting 10 to one, 20 to one, 30 to
00:11:41one, and they're spending a thousand dollars a month. And it's like, why are we not spending
00:11:43$2,000 a month or $5,000 a month? Now, if you're not sure, then you have a data problem. So you got
00:11:48to go make sure the attribution's right. But if you know that's where the money's coming from,
00:11:51by all means spend more. And I know that there's like some emotional barriers because I've gone
00:11:57through them where you're like, Oh my God, I can't believe I'm spending a thousand dollars a day.
00:11:59Cause you feel like you're getting a thousand dollars poorer and you're like risking it.
00:12:02The thing is, is that if you already know based on past metrics and the existing campaigns that
00:12:06you're running, that you get this expected return, then this is just part of leveling
00:12:10up in businesses that you take greater and greater risk. And at the same time you get
00:12:12greater and greater rewards. Okay. So let's go Facebook ads. All right. So the good news is that
00:12:19you got ads up. The way that I would try and look at these is that most times when people make ads,
00:12:25especially the creative people, they'll use Canva or whatever, and they're making it on their desktop.
00:12:30But the thing is, is that the way that you need to see it and the way that your CMO should look at it,
00:12:33you should literally text. She should text you the image of the ad. Cause it's going to be about as
00:12:37big as it's going to be on someone's phone on social. Can't even see you visit our website.
00:12:42You can't see that little, you can't even, you can barely read it now, right? You can't see the
00:12:45number. You're not going to be able to read that. That's the checkpoint things. You can't see that
00:12:48either. All we really see is picture of you and your wife and air duct and driver cleaning experts.
00:12:54That's actually the only thing that we're seeing. I'll bet you, I don't know, but I'll bet you that's
00:12:58the highest converting. Absolutely. Yeah. So, so, and that's actually still with pretty rough contrast.
00:13:04Like the 18 point is actually kind of hard to read. You don't need to worry about logo stuff for when
00:13:07you're doing direct response. Okay. Hilton head Bluffton. You want that in the ad copy as the
00:13:12headline. And then the actual image, if we're just sticking with image ads for now, uh, we want the
00:13:16free 18 point inspection to be like, boom, it says, get yours today. Just be like, get yours. And then
00:13:21that way it's all the same size. Right. And you can probably drop it today. Then I would run 40
00:13:25variations of white background, blue background, blue on white, like take all the colors that you
00:13:29have for your brand. And I would just basically just run a lot of variations there. And you might
00:13:33be amazed by this, but the picture that you choose there, just like it's kind of blocking the work,
00:13:38which is kind of over cause I want to see what you're actually doing. Right. Also you with pictures
00:13:42with customers like smiling and super happy near their HVAC unit. Like people understand what it's
00:13:46about, but I would be running a ton of different images. Also, do you do any organic like posts on
00:13:51like Instagram or I would take all the best performing organics and literally just the
00:13:56last five seconds, just tack on like, Hey, if you want an 18, like if this is cool and you want an
00:14:0118 point inspection, it's absolutely free. Just click the link and we'll come straight out to your
00:14:04house. Yeah. So just take the best performing ones, add the five seconds on the back. And then
00:14:08basically each one of them become good, typically pretty good ads because the algorithm already does
00:14:13the testing for you. The cheapest ways of testing new ads. Um, it's just like post them as organic
00:14:18and then see how they do. Now let's go funnel CRO. So this is what the page is going to look
00:14:22like. You're gonna have your little hamburger menu here. I think you could just put the number
00:14:25three, three, three, whatever up here. You want to make sure that on mobile, this is all one line.
00:14:29So there's no, no other room. Do you do free assessments or no? Yeah. Okay. Uh, we actually,
00:14:36we saw that just changing the verbiage instead of doing a free estimate of like the 18 point
00:14:40inspection. Yeah. People love that. Yeah. For 18 point inspection. And then I think we have our form
00:14:46right here underneath. They have the number of the top for the people who want to call. Cause I'm
00:14:49guessing cause you have it all over that you do have somebody who's answering those. And then you
00:14:51have your little, you know, submit whatever thing here. Gotcha. And then I would probably put a
00:14:56locations just because I'm thinking what are the most common questions that someone might ask? If
00:15:00you already know there's other ones that I might also include FAQs at the bottom. And that would be
00:15:04it. That's more like that's the page. And it should be a freestanding page. That's you don't even have
00:15:09to have it navigatable from the side. You can just be like, this is where all my ads go. You might also
00:15:13find though that if you change all the buttons on your site to redirect to this page, you'll just
00:15:17convert more of the existing traffic also in the SEO side. Yeah. So I think this honestly of like,
00:15:21of all the things I'm going to go over, I think the pricing, the ads and us doing this funnel change in
00:15:25terms of how we're directing the traffic is probably gonna be by far the biggest improvement. I think
00:15:29you probably have something in the neighborhood of a two X number over here. That's going to be really
00:15:35big. The funnel conversion we've outlined that you're going to increase Google ads. You probably
00:15:38have a ton on the Google side. On the Facebook side, we're going to do a plus plus on images.
00:15:44And we want less text and basically offer first. Basically just leave with the offer. In general,
00:15:53with marketing, like I don't want to say think the same thing multiple times. I'll say different ways,
00:15:57but the same content over and over again, like it just looks cheap, you know, for lack of a better
00:16:02term, which will impact your brain. So let's do the reactivation stuff. And then let's pull up
00:16:08the emails. We recommend a yearly free checkup for your dryer event to ensure it's working safely and
00:16:12efficiently. If you use your dryer frequently or have furry pets, we suggest cleaning it more often.
00:16:17Frequent use means more than three loads per week. If you have pets, consider more frequent clinics.
00:16:21Okay. So what's interesting about this is that this is like, I mean, what you've proven is that just
00:16:27telling people you exist tends to get more business, which is like first, first objective. I would say
00:16:33the second version of this is we says, Hey, you know, ProShine family, two things that I would
00:16:36probably consider testing. I owe you a free checkup or I owe you X amount of money. So whatever the
00:16:42cost of a checkup is you 175 or whatever, like I owe you $175. That'll get a lot of opens. It's
00:16:47like, Hey, it turns out that when you signed up, we didn't communicate a component of our offer that
00:16:52we did to other customers. And I want to make sure that we're just trying to do right by you more like,
00:16:57Hey, we messed up. Can we make it up to you? It's a different frame than like, Hey, like we're coming
00:17:01back. So nice thing is with this, you can just split test it. So you can run it when we can see
00:17:05what the open response rates are in the next week. And the way you're doing this, you're just doing
00:17:08this manually. Just looking at your list, who was the last time out and then, okay, that's fine. Then
00:17:12this, I mean, the nice thing is that creates a really easy way to do the split test. You don't
00:17:15have that no cost to you in here. So I would make sure that that is definitely highlighted. Yeah. So
00:17:19we recommend a yearly and then I put bold underlined at no cost to you because people scan these things.
00:17:24Some of the things that I thought of that are like unique angles, kind of like the, Hey, I owe you some
00:17:28money or Hey, we messed up, dot, dot, dot. Like what will make this business more valuable in the long
00:17:31run? So number one, it's savings. So if you can ask for people's bill from your existing people
00:17:39and be like, Hey, can you just send us your bills from last 12 months? And it shows before and after,
00:17:43because then you'll have a 12 month running average. It's such a stronger pay. Hey,
00:17:46this actually saves money. The reason that I think this is so compelling is that this is what,
00:17:50when paired with the larger price will make sense. We're charging 1500 bucks or $7,200 per unit. So
00:17:57it's 30, whatever, 3,400 that you're going to pay. But the average person is getting that back in 18
00:18:01months. And it's going to increase the value of the house. Cause we're going to give you this,
00:18:04you know, this little portal that'll show you all the, the, the fix it's in the mess ups or whatever
00:18:08one is I would send those stats out about savings. Okay. Number two, in terms of themes of the emails
00:18:13is I would take the exceptional ones and send those. I'd be like, Hey, this is Casey. Casey was
00:18:17at $600 a month. And now she's at one 50. You're like, Holy cow. I could use that kind of, it's like,
00:18:21Hey, you know, hit us up. It's better for your allergies and it's better for your pocket mode.
00:18:25Right. Those are three kind of strong angles, which then leads me to the second kind of stat
00:18:30that I think is worth collecting. So when we have the stat on savings, which I think will be the most
00:18:33compelling, but interestingly, I'll bet that if you had a different angle on some of the ads, which is
00:18:37like, are you sneezing a lot? Are your eyes watering? Like what are the pains of somebody who has allergies
00:18:42and I'm somebody who has terrible breathing. And so that's why, you know, I, I recognize it. And if,
00:18:46if someone says, did you know that allergies are reduced by 33% by just having better air and then
00:18:52be like contrast that with 90% of houses or past their period of time where the existing filters
00:18:58work or whatever. That's why we blow up in April when the pollen season comes and all the windows
00:19:02are open. That's big for us. So the nice thing is that if you have one or two times a year that
00:19:07you know, it's going to kind of blow up, then you actually get basically year round coverage. In the
00:19:11gym world, people want to get in shape for summer. So for us, we have summer and then we have new years
00:19:15as like two kind of polar ends, but we can get year round signups because as new years approaches,
00:19:19it's like you're advertising, Hey, when it starts, you want to start getting in shape for the new year.
00:19:22And then once new year happens, it's like, Hey, don't you want to make sure you have your
00:19:25news resolution that worked? And then it's like, Hey, did you miss your news resolution? Right.
00:19:28As we're getting into like March, April, it's like, Hey, if you want to get in shape for summer,
00:19:32you got to do it now. Right. And then once summer hits, it's hot as shit. And then they're like,
00:19:35you know what I mean? I'm going to be keen. I look like I look terrible. Hey,
00:19:38if you look terrible in your bikini, you should come in now. It's like, Hey, did you,
00:19:40and then write it then we're going right back into the year. And so we only need like one or two kind
00:19:44of seasonal pain points to go pre during post twice, basically on two cycles a year. That theme
00:19:50is what you would communicate to the CMO. All of our messaging for the next two months is going to
00:19:54be anti-allergy and that's going to be through the emails. That's going to be through the ads.
00:19:58It's going to be through Google PPC next two months. It's going to be like, okay, season's here.
00:20:01Because thing is, is also you're targeting is going to go to some of your existing customers. And so
00:20:05I'm sure some people are booking through Google search that already are customers of yours. They
00:20:08just don't know how to find you. They just Google it. Right. And so this just gives you another
00:20:12opportunity to get in front of them more times. So it was really cool to hear from Alex that we
00:20:16could start using some anti-allergy or some mildew kind of things that we can implement. Cause I know
00:20:21that this is a big issue that many homeowners don't think about until it's unfortunately too late.
00:20:25Real quick. I'm going to show you the exact 10 stage roadmap from zero to a hundred million plus
00:20:30that less than 1% of companies finish. I've now done multiple times. And so I can say with a lot
00:20:35of confidence that these are the stages as headcount increases that you need to get through. And I broke
00:20:40each of these down by eight different functions of the business, what the constraint feels like,
00:20:44like what are the symptoms of it when you're going through it. And then what steps we actually took
00:20:48to graduate. And we've done this across software, physical products, service businesses, brick and
00:20:53mortar, all of this, and it works. And it's my gift to you. It's absolutely free. And so the link's in
00:20:58the description, but you just go acquisition.com/roadmap, just enter your info and it'll spit it
00:21:02right back to you. All free. The other thing, do you have retargeting across all platforms set up?
00:21:06We're working on it. Okay. Yeah. So that would be for me, like probably be number seven cross
00:21:13platform retargeting. And the other thing is rate is we want to own all terms.
00:21:23Quick pro tip for just about anybody. If you advertise at all, or even have some level of
00:21:29word of mouth, people will search for your business or your name. And so for me, it would be like,
00:21:34I should own Hormozi, Alex Hormozi, Hormozi acquisition, acquisition.com, all these different
00:21:40permutations of things that are words or branded terms that I have been consistently marketing over
00:21:46an extended period of time. And so we just have to think, what are people most likely to search for
00:21:50if they know who we are? And we just want to make sure that we're first thing that people see,
00:21:54because otherwise you leave that space open for competitors to advertise and scoop your customers
00:21:58for you. And this also helps out businesses who don't have as strong of SEO, so search engine
00:22:02optimization, so that if your customers are searching for you, that they find you.
00:22:06And that's the point. And I'm willing to do that even if I have to pay, because some people are
00:22:09like, well, they were going to find me anyways. I don't want to pay for that click. Dude, get bigger
00:22:13problems. Like you're not going to lose money on that. Because think about the alternative. Someone
00:22:17could just outbid you on your own terms and then it becomes a problem. And I'll say this, if someone
00:22:21is outbidding you on your own terms, the good news is you'll always be able to beat them on being more
00:22:25profitable on your name. If we're looking at this stuff, I think we're looking at basically once a
00:22:30month here, one time per month. And I think that these reactivation emails, I'm going to pull this
00:22:36over, would be one is like, I owe you, which I would have a follow up to this one. So there's
00:22:48difference between like, we might email once a month, but we might have like a two or three
00:22:52email sequence just for like that little segment. Does that make sense? So it's almost like three,
00:22:57six mini campaigns more than six individual emails. And so we're like, I made a mistake
00:23:03on your account. Okay. But that's like, kind of like A and then B.
00:23:13We probably have our allergies angle and then we have our savings angle.
00:23:17And then we have our environment. You never know. Yeah. Another good one around the allergies,
00:23:25like from the polar opposite from obviously April to like the end of year, like when it starts to
00:23:29get cold is mildew smell. Because a lot of times when those heating elements start to kick up in
00:23:33electric heat, you're smelling it through the duct work. So you've got pollen and then you've got,
00:23:37would you say mildew, right? These are kind of like your two variations of your different kind
00:23:41of allergy angles. I would also consider doing case studies as the follow-up for each of these.
00:23:49So it's like, here's the stats behind this. And the follow-up email is like, Hey, here's Casey,
00:23:54who had the same issue. Maybe you should consider that. And so then this one gets us to like,
00:23:57come back. Right. Cause that's our six months. Like I would be unsurprised if it doesn't do
00:24:0420 to 30% of revenue. Yeah. Big time. And next thing with this, it's all profit. Right.
00:24:10All right. So let's talk about affiliates. Okay. All right. So walk me through your existing affiliate
00:24:19process. So right now we just have a connection with our other partners. Typically they're either
00:24:23in HVAC space or they're pest control, even remediation companies. We've made connections
00:24:29one-on-one with them. They know what we do. How'd you make the connection? Through networking,
00:24:32just in general. So we have networking events that we go to. People that we're partnered with
00:24:36refer us out to other companies that they work with. Your existing referral program has basically
00:24:40just been like, I'll send you a business. You send me a business and that's worked out. Okay.
00:24:43But how many would you say are actively sending you a business? On a consistent base in one.
00:24:47Okay. Yeah. So I I'm going to guess that's just worked out, but most of the times,
00:24:50if you want to have like a true kind of affiliate or partner program, we need to have some sort of
00:24:54offer for them. I see this as basically two potential avatars, and I don't want you to focus
00:24:57on both. I want you to like pick one, basically. We've got the events play, which is okay. I'm going
00:25:02to go to these HOAs. I'm going to go not during the time that there's an event and say, Hey,
00:25:06when do you have your HOA events? I did this house and this house in this neighborhood.
00:25:10Cause that's going to be key, right? We already did this house and this house. You can call them up if
00:25:13you want, hear their numbers. We'd love to be able to just know what your schedule is for when you have
00:25:17your HOA events, just so we can just show face, you know, we like to be a part of the community,
00:25:21blah, blah, blah, blah. But this is an outbound. Okay. Effort that you're basically it's you plus
00:25:27car or Nicole plus car going out and shaking hands, kissing babies. And basically what we want to do is
00:25:32create a calendar so that we end up getting to, you know, one to two a week, which I think you could
00:25:36totally do. The stuff that we're getting from that event. I mean, the last time we did, we booked 55
00:25:41inspections, both our CMO and Nicole. I mean, they rock that stuff. So I see this as a very good way of doing it, but
00:25:47I think we go outbound, give us your calendar for what your events are. And then it's just like, once
00:25:50you have their calendar you're in, and then every time you're there, you're like, Hey, when's the next
00:25:54one? And that way you just always go book an event from an event once you're in. Now on the partner side,
00:25:59what I want to talk about is the offer. We want to have a really compelling offer for them. Referrals,
00:26:03everyone promises no one delivers. And so it's like, you need to have something that they're going to like,
00:26:07you know, get into bed with you on. Whatever the highest gross margin thing that you can do,
00:26:13that's like kind of lower ticket. So that $175 thing, I think that you say, Hey, you can charge $175
00:26:21and you can keep the whole thing and we'll do the work. But then when you go out, you've got the client
00:26:26and then you can sell the rest of your, the rest of your work. So this is the $100 leads book.
00:26:30This is page 223. We're talking about affiliates. And so one of the key parts about making an affiliate
00:26:35work is figuring out the offer. That's going to work best for them to sell on your behalf. And so
00:26:41I have a couple of different versions of, of setting this up. I outlined them on pages 237 to 239. So I
00:26:48basically give you three different versions that you can use to get affiliates to promote your stuff.
00:26:53Now, what I'm proposing for him, he offered number two, which is they have the core thing that they're
00:26:58selling, but then they upsell for 175 bucks, his lead magnet. So they're going to sell something
00:27:04that he's going to give away for free to them, to give to their customers. And then once that
00:27:10customer comes in with that lead magnet, cause they bought the $175 thing, you then upsell the
00:27:15core offer that applies to you. The reason they do it, the other business is because they make all
00:27:19this money on the 175 bucks that they don't have to do anything for. You like it because it might
00:27:24cost you only $25 to deliver that $175 thing. So your cost of acquiring the customer is your
00:27:29conversion rate from lead magnet upsells to your core offer times the cost of delivering it. So
00:27:35let's say one out of three people takes the upsell. Well, if your cost of delivering that
00:27:40upsell is $25, then it costs you $75 per customer, which is probably exceptional math for his business.
00:27:46And it's a very good point because our technicians are trained to, even if they're doing just a
00:27:50dryer, to push the inspection, to see what's going on while they're there. Okay.
00:27:54And so this we'd give this two affiliates. So, you know, you have your, your one guy, but it's like,
00:28:01Hey, let me talk to 10 other ones. I saw that you guys don't do duck cleaning. We do. It's one thing
00:28:05to say, Hey, we're going to free business, which we will, but you also only have so much business
00:28:09to refer to. And the thing is, is long-term it's a less scalable option because what ends up having
00:28:13to happen is if you're like, well, I want 20 referral partners. It's unlikely that you're
00:28:17going to have sufficient referral volume to send them all enough business. So the good thing about
00:28:21what we have right now set up, it's another set of eyes as well for us to go through and diagnose
00:28:26their system. So it gives them more visible time on their, their units in their client's houses,
00:28:32which allows them, it allows us to say, Hey, listen, like this is, needs to be replaced,
00:28:36or this is wrong. We'll upsell your stuff if we don't do it. Right. Well, we send them right back
00:28:40to whoever sent us there. Yeah. So, you know, depending on what partner we're going there with,
00:28:45solidify some of their sales as well, which is why that affiliate with our biggest one is working
00:28:51so well. So I think that this is the offer I would approach them with and just say, listen,
00:28:55you can sell it. I'll send all my guys out. I'll eat it at a hundred percent of cost. You take all
00:28:59the money and you just know what your metrics are. Like you're still going to close 87% and it's going
00:29:03to be three, four K. So who cares? Right. You would pay 175 because the hard cost of sending the guy
00:29:08out is less than that. So what's the cost of sending the guy out? About a hundred. Okay. So your actual
00:29:13cost is about a hundred, but you're probably going to close. What percentage do you think you'll close
00:29:17into new business? Probably 75% of that. Cool. Let's be conservative and say half. If you had
00:29:22to pay $200 in terms of CAC, who cares? Right. Right. And so that's the, that would be the offer
00:29:28that I lead with because that way you don't feel like you owe them. I mean, obviously you're going
00:29:31to want to try and refer business if you can, but this at least gives them real money. No extra work.
00:29:37Like it's a compelling offer. They just send it to us and we get it done. Yeah. I don't think you're
00:29:40going to be able to do both of these. I agree. So which one do you feel you would be like more
00:29:44equipped to do sooner? Equipped to do sooner. I think outbound is probably easier because we can
00:29:50obviously have our CMO to start making those reach out calls and see what's going on. Ultimately,
00:29:54I think that this is going to be very interesting for us. We want the activation. I think that
00:29:59at a certain point of just having people say, Hey, this is the price chart. So, okay. So if we're
00:30:04looking at a timeline, it's like probably for the rest of this year, you're just going to, it's going
00:30:08to take you to spend this up. Right. And so this is probably a 2026 thing. Okay. Realistically, because
00:30:13for each of these things, you basically need someone who's full time in charge. As ugly as that
00:30:18sounds. But the thing is, it's going to be worth it because you're going to do a bunch of business.
00:30:21If you get one more partner like your current one, it's already paid for itself. And I think that if
00:30:24one time one person's full time, that's the only thing they're doing, they'll definitely do more
00:30:28than that. And then you'll run into supply constraints because you won't have enough guys,
00:30:30which we can do it. For our affiliate, I think that this is going to be a great program for us.
00:30:34And we always look at how we can get back to everyone around us. So this is going to fit our
00:30:38model and then just really explode the whole process. Let's look at our, our, our overall,
00:30:43our overall improvements. We'll prioritize them. Does that sound good? Okay. Number one is we're
00:30:50going to do price raise of 10%. So around 1650 per unit. And as long as close rate stays of
00:30:59above 65%, we're making money. Okay. Two is you're going to continue to pay off the debt. So we're
00:31:04going to, we're just going to keep it debt paid. Number three, change funnel. So optimize landing
00:31:10page and redirect buttons. So all the buttons on the site should now go to this new page. That's
00:31:18already optimized. So number four is fixed ads, which is variety plus organic best performers
00:31:33with a plus five second CTA. And then we're going to increase ad spend now that we fixed these two
00:31:41things. So it's like, let's go make a better funnel. Let's go fix the ads. Then we will increase the ad
00:31:46spend and we're just going to keep doing this kind of infinitely. This should be, there you go forever.
00:31:53And for the increased ad spend, what are you thinking? Like how much do I,
00:31:57do you want me to designate percentage base on, on that? Or the reason that I do it in this order
00:32:03is because if we fixed the landing page and we've just improved the ads you have, you might already
00:32:08double or triple your lead. And so you might not even have to spend too much because it might be
00:32:12like, shoot, I don't have enough guys, which is a problem I'd love to create for you. Then we go
00:32:15retargeting cross-platform plus own Google search terms. The last main one that we're going to do is
00:32:23just going to be outbound to HOAs. Like you can do one through four in the next, like two weeks.
00:32:32Right. This is kind of like the first thing that happens. This then is kind of happening
00:32:37anyway. So there's not really any work that has to happen. These two happen together. These two will
00:32:42happen together. And then this would be the last thing that I would do because all of these might
00:32:46even result mobile. Like, shoot, I don't even need to do these events yet. Like we're already crushing
00:32:50it on this part. So I think that this could reasonably increase profit by 25% in profit.
00:32:58That will also, once you have to not pay off the debt, that'll increase your profit by like
00:33:025%, but at least a hundred percent in headache. This might be a 2x that's sitting right here for
00:33:10optimizing the pages. And it might be even more because you have your SEO that's going to feed
00:33:14into that too. Fixing the ads and organic like this could definitely be a two to three X. I know
00:33:20that sounds wild, but like, I think you're getting by with the ads that you have because other people
00:33:26who are in your industry don't know how to advertise more than because the advertising.
00:33:32The ad spend is just going to be, you know, one to one ratio of basically you're scaling, right? If
00:33:37you can keep ROAS the same and we double it, then everything doubles down the funnel, right? This is
00:33:41probably going to be somewhere in the neighborhood of like a 10 to 20, I'll just call it a 10.
00:33:45Conservatively, I'll say it's about a 10, 10% lift, maybe 20% that you might get from the retargeting
00:33:50side. And then outbound is kind of like uncapped because you could figuratively just be like,
00:33:57I'm going to go get a hundred HOA and then like you're completely plugged in. You do that and
00:34:01you're at 10, 20 million horse here. Oh, you know what? I forgot one. So six email reactivation.
00:34:10There we go. And I think that can give us another
00:34:17probably 20 to 30% lift. Yeah. Money. And that's, and that just keeps growing. Well,
00:34:24the nice thing with things like that is that they do compound as the business grows. Right.
00:34:27And so you don't like, once that's installed, it just continues to print. Do you think this will
00:34:32help you grow? Absolutely. Sweet, man. Awesome. You feel good about this? I do. All right. Rock and
00:34:39roll, man. Drum roll, please. It's been almost a year since we filmed this episode with Corey.
00:34:43My team jumps on a call to check in on his progress and I'm going to watch it live. Hey Alex. So yeah,
00:34:48so when we were there originally for the recording, we were doing about 1.25 million in sales for the
00:34:54trailing 12 months. Currently we are on our, on our goal here for 2.3 to 2.5 a year later.
00:35:00The biggest impact that really, that we obviously went over was a lot of like my marketing,
00:35:05which we knew was an issue when we first got there. So went with a new third party that's been there,
00:35:11done that with many other companies before. So they're been amazing to work with. And again,
00:35:17our, our lead flow after kind of making some of those conversions from the landing page,
00:35:22marketing, upping Edspend, we were sitting about 120 leads a month and now we're about close to 200,
00:35:29which is really great. And they're higher quality. And then I'm excited. Hopefully in the next 12
00:35:34months, we'll be looking at another location, which is super exciting, not only for myself,
00:35:37but for my team. I got some, some good individuals here that are looking for some new opportunities
00:35:43and I'm happy to be able to facilitate that. I just want to say, I thank you and I appreciate all
00:35:49everything you do. And I love your mission, which again is like very similar to the way I go to help
00:35:55my clients. You do it for the right reasons. And that's something I can respect. Well,
00:36:01there you have it. That's Corey. You know, crushed it almost doubled within a year,
00:36:06just walking through the stuff that we went through. All the credit really goes to him. I mean,
00:36:09at the end of the day, you can watch a hundred of these videos, but if you do nothing with it,
00:36:12nothing's going to happen. So real businesses, real tactics, real shit. And, uh, hope to see you on the
00:36:18next one.