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00:02:10We're live?
00:02:11All right, rock and roll, baby.
00:02:14Happy, shit, what day is it?
00:02:19>> Thursday.
00:02:20>> Happy Thursday.
00:02:21I honestly had no idea what day it was.
00:02:23Happy Thursday, everyone.
00:02:24I think they say Thursday is the day of Thanos,
00:02:29who attempted to cut the universe in half.
00:02:33Which, one of the things I love about Thanos is I love the heart behind
00:02:37his original goal, which is to save the universe.
00:02:39That was his misguided objective, and he thought that it was getting overpopulated.
00:02:43But I always criticize his strategy.
00:02:46It's like in one population cycle, it's like people would have more kids to
00:02:50overcompensate, and they'd be like, we'd be so back.
00:02:52So it was like a 20 year solution.
00:02:54I just like, I'm like, really?
00:02:55After like, amassing all the stones, that's what you thought?
00:02:58I don't know.
00:02:59I feel like he could have had a better plan.
00:03:00Anyways, just saying.
00:03:02And everybody, I love you all.
00:03:04Hope you guys are having an amazing start.
00:03:06So we're doing a little Hormozi hotline today.
00:03:09So I'm taking calls from Vantage, which is our community of million
00:03:15dollar plus business owners, where I answer questions.
00:03:19And so that's not the only thing we do, but I'm doing that now.
00:03:22So who we got first?
00:03:23>> All right.
00:03:26>> Drum roll, please.
00:03:27Mindy, I also see you in the chat.
00:03:28What's up?
00:03:29Ramos, I also see you.
00:03:30What's going on?
00:03:31>> Mark.
00:03:31>> Hello, I don't hear anything.
00:03:35In the meantime, I'll answer Clidge D.
00:03:43Why people don't do the stuff they said they should do.
00:03:46Because they have a reinforcing contingency that is short term,
00:03:50that is more reinforcing than doing the thing they think they should do.
00:03:55Long term, you solve that by taking actions.
00:03:59And then once you take those actions, creating a label for
00:04:02that pattern of behavior that you would then call an identity.
00:04:06So we basically create an identity that says, I am organized.
00:04:10And so you do some sort of organizational activity, and you say, I am organized.
00:04:14And as a result of being organized, I now behave in this way on a consistent basis.
00:04:18Because it is more reinforcing to be consistent with that identity,
00:04:22that label that I've given myself, which I've deemed as good.
00:04:24Than it is to not do it.
00:04:26And so then that is how those cycles or those patterns get created.
00:04:29And so almost all of these things always have to start with some sort of behavior.
00:04:32I would say that oftentimes when we're younger, we do something.
00:04:35Then someone says, you must be organized.
00:04:37We associate with something good.
00:04:38And then we repeat that behavior in the future.
00:04:40And so I think when we're adults, we basically have to do that for ourselves.
00:04:45Otherwise, we stay stuck in basically short term thinking and short term behaviors,
00:04:49which ultimately yield short term results, which is no bueno.
00:04:53Which is Spanish for not good.
00:04:56Mark, we on?
00:04:57I don't hear anything.
00:04:59In the meantime, if you guys are in the chat, drop perguntas.
00:05:05Let's do it while we wait for Mark.
00:05:06>> Hey, Alex.
00:05:11>> Hey, Mark, what's going on, dude?
00:05:13>> We did it.
00:05:14When my wife was in labor,
00:05:15I worked from the hospital room on my laptop during the hours she slept.
00:05:19I promised her for years that all of this would pay off.
00:05:22But right now we're crammed in a tiny house in LA with two kids under 18 months.
00:05:25And yes, the second one was not planned.
00:05:28I run a poker coaching business, and I was at your workshop nine months ago.
00:05:30We were at 2 million a year then, and
00:05:32we've doubled to about a 4 million a year pace this year.
00:05:34But my goal is a million a month.
00:05:37What's stopping me is I can't figure out how to scale demand past what our warm
00:05:40audience generates.
00:05:42We've got nearly 200k YouTube subscribers, and
00:05:44we close over 40% of the people we pitch into our five day 5k program.
00:05:47But we only sell 30 something seats a month, and we have capacity for triple that.
00:05:52And every cold audience funnel I've tried has come back break even or worse.
00:05:55I was hoping you could tell me exactly where I'm fucking up so
00:05:57I can buy my family the house they deserve.
00:05:59>> Well, first off, thank you for that context.
00:06:03It sounds like you have a crazy story right now.
00:06:06Right now, cold traffic is the natural funnel that should be added on to what
00:06:12your existing, basically, warm is only gonna get you whatever warm's gonna get you.
00:06:15And you probably have a warm sales motion rather than a cold sales motion.
00:06:22And so when cold traffic's going through a warm motion, it's not converting.
00:06:25And so we basically need to change your sales motion from a warm motion to
00:06:28a cold motion.
00:06:29And so there's two downstream benefits of that.
00:06:31When warm traffic goes through a cold motion, they will be more sold and
00:06:35more likely to take a higher priced offer.
00:06:37And when cold traffic goes through a cold motion,
00:06:40they'll just be more likely to buy.
00:06:41And so basically, we need to microwave your cold traffic to make it warm.
00:06:46And so that's basically the step in the process that's probably missing.
00:06:51So walk me through the cold traffic funnels that you had leading up to this.
00:06:55And what is the, actually, let's start with the warm and then we'll do the cold.
00:06:58So what's the warm traffic funnel right now?
00:06:59>> Warm traffic funnel is just VSL into book a call.
00:07:04>> Okay, yeah, so just a basic call funnel on warm traffic.
00:07:07>> And we also have a warm direct response that is printing as well.
00:07:12That one fatigues really quickly, so we have to keep spend down.
00:07:15>> So it's just bottom of funnel, that's the issue.
00:07:17So basically, it's functionally like that direct response kinda like, hey,
00:07:20come to the thing is taking the bottom slice of the pyramid,
00:07:25the people who are like six inch pots, and they're just putting them in.
00:07:28So in a lot of ways, they're just retargeting.
00:07:29But you're looking at like,
00:07:30how do I get more people on top of funnel into my world, correct?
00:07:34>> Correct, yes.
00:07:35>> So there's a couple ways to do this.
00:07:38I'll just call it the short term and long term way.
00:07:42And we could have a combination of both, which is probably what I recommend.
00:07:45So the call it the blended way is to run a paid workshop.
00:07:52So when I say paid workshop, I'm saying call it a 49 to $99 offer, probably 99.
00:07:58And have it be a legit workshop.
00:08:01And then that workshop will allow you to take,
00:08:03like it's much easier to get someone to buy a $99 thing than,
00:08:05how much is the poker coaching?
00:08:08>> 5k.
00:08:08>> Okay, yeah, so it's much easier to get those guys to spend 99 and
00:08:12deliver one thing that's super valuable.
00:08:16You prove the value, right?
00:08:17That way they don't have to guess is this guy good or not.
00:08:19You can take the time to tell them who you are and
00:08:21then the vast majority of it is going to be the value.
00:08:23And then you make them a nice irresistible offer of taking the next step.
00:08:26And so basically you book your calls from that live thing rather than from
00:08:30like a short VSL.
00:08:31>> Cool, we tried a cold webinar and it's flopped a couple of times.
00:08:35>> Yeah, I'm guessing, was it free?
00:08:38>> Yes.
00:08:38>> Yeah, so I would make it paid and just expect that you'll,
00:08:42like expect to lose money on the $99 purchases.
00:08:48But what will happen is I'm going to bet that the people who,
00:08:51did no one show up or were the people who showed up not qualified?
00:08:53>> We had about a 25% show rate.
00:08:56>> That's fine.
00:08:57For free, that's fine.
00:08:59>> Yeah, only 5% of those booked calls.
00:09:01The retention was incredible, but only 5% ended up booking calls.
00:09:04>> So what's likely is that the vast majority of people who showed up to
00:09:08the webinar were unqualified.
00:09:09Did you have any metrics on the customers from the opt-in of who was qualified for
00:09:14the thing?
00:09:15>> It seems like even the ones that booked calls,
00:09:18it's just most of them could not afford the thing.
00:09:20>> So that's where having that little bit of friction will typically take
00:09:24the unqualifieds from 90%, which is probably what it was,
00:09:29to closer to 40% on a paid workshop.
00:09:34And once someone makes a tiny purchasing decision,
00:09:36so likely they make the next purchasing decision significantly higher,
00:09:39like buyers buy more.
00:09:40Is that track?
00:09:45>> Yes.
00:09:45>> So basically just run this to a sales page,
00:09:47stack the living fuck out of the bonuses, so
00:09:50that it just be like the $99 should feel like absolutely absurd.
00:09:54And then make that call like a three hour workshop and then just sell at the end.
00:09:59>> Cool.
00:10:01Okay. >> Does that make sense?
00:10:02You just had to tweak it.
00:10:03That's all it was.
00:10:04Like free sometimes can be harder, and especially since you have an audience.
00:10:09It's like these people have some level of trust with you.
00:10:12And so it's like let's just get, let's deliver more value prior to the ask.
00:10:16>> 100%, that makes a ton of sense.
00:10:18>> And then qualify for that.
00:10:19Yeah, I would also on the opt-in form, are you getting qualification data?
00:10:24>> Right now we're only asking for name, email, number.
00:10:28What do you know, what behaviors or characteristics
00:10:34does someone have to have to be a good buyer for you?
00:10:37>> The average amount that they buy in for is our highest quality signal.
00:10:43>> Okay, cool, so then I would just add that as one of the fields.
00:10:49So you have name, phone number, email, average buy in for the games you play.
00:10:53>> Cool, and do we DQ people who don't?
00:10:58>> No, what it'll do is you're gonna get that data and you can get a little bit cute
00:11:03with Facebook and have different thank you pages for the people who buy and
00:11:07are qualified or don't buy and are not or buy and are not qualified.
00:11:10And then you can train the pixel data on the more qualified audience.
00:11:14>> Okay, cool.
00:11:16Yeah, we're doing that for our organic right now anyway.
00:11:19>> All right, cool, I'm just writing this down for myself.
00:11:22Okay, so number one, we switch from free webinar to paid webinar,
00:11:27which is not even a webinar, but we're gonna change to a workshop.
00:11:31And then number two, that maybe 90 minute thing that you were doing before,
00:11:35expand to three hours, deliver true value for 99 bucks.
00:11:39And then on the front end, we want to make sure that we add the highest signal,
00:11:44which is the buy in, to the intake so
00:11:46that we can start optimizing all of our ads around it.
00:11:48And you can quickly see what your true conversion percentage is.
00:11:53Because I actually care very little about the webinar conversion percentage.
00:11:56I care a lot more about what the qualified conversion percentage is.
00:12:00Because maybe you had 5% that closed last time, or whatever it was.
00:12:03No, you had 5% qualified, whatever it was.
00:12:04But if you closed 50% of the people who were qualified, it's a banger webinar.
00:12:09It's a traffic issue.
00:12:11And that will give you a much better read.
00:12:13Cuz if you're gonna do these week to week, which I'm sure you will,
00:12:16you will be way better at predicting what the revenue size of the workshop is going
00:12:20to be based on how many qualifies are there, not how many leads.
00:12:24>> Cool, okay.
00:12:26>> Rock and roll? >> Yeah, this tracks.
00:12:27Yeah, I appreciate this.
00:12:28>> Yeah, and juice the hell out of that $99 offer.
00:12:30That's the third thing.
00:12:32>> Just give away time.
00:12:33>> Yeah, make it absurd.
00:12:34There's no reason someone should not do it.
00:12:35>> Okay, great.
00:12:37Thanks Alex, I appreciate it once again.
00:12:39>> Congrats on getting from two to four million.
00:12:41>> Thank you. Next time we talk, hopefully it'll be over ten.
00:12:44>> Million a month, baby.
00:12:45All right, rock and roll, man.
00:12:46>> Thanks, Alex.
00:12:47>> Yeah.
00:12:47All right, was that interesting for everybody?
00:12:52Sometimes it's like six inch putts.
00:12:54It's super, super tight.
00:12:56>> Yo, what's going on, Alex?
00:13:00Good to see you again, Justin King here.
00:13:02>> What's up, stud?
00:13:03>> What's going on?
00:13:04Hey, your arms are looking a little bigger, by the way.
00:13:06>> Thanks, man.
00:13:06I'm actually dieting, guys.
00:13:08I was a little chunkier, and I just cut 200 grams a day out of my carbs,
00:13:11so I'm a little cranky.
00:13:13>> There you go.
00:13:13Well, best of luck on that.
00:13:15>> Thanks.
00:13:16>> So, okay, so my co-founder Chris Bumstead and I built Standard for
00:13:21Men to attack comfort and low standards head-on.
00:13:25Through our transformational online coaching, we allow men whose bottleneck to
00:13:28their success is their body the opportunity to earn self-mastery and
00:13:32transform their bodies within our four-step success-guaranteed system.
00:13:37We're at 150K MRR.
00:13:39We want to scale to 15 mil MRR in the next three years.
00:13:44We've produced thousands of transformations and
00:13:46worked with 100-plus pro athletes, but we are demand-constrained.
00:13:51>> You want to get to 15 million a month, is that what it was?
00:13:55>> Yep. >> Okay.
00:13:55>> Yep.
00:13:56>> So get to 15 million a month, all right.
00:13:58Okay, so what's that?
00:14:01So it's a 10x is 1.5, 100x is 15 million.
00:14:05Okay, so we need 100x.
00:14:06So how many sales per month is it right now?
00:14:09What's the price point?
00:14:10>> Yeah, so right now, main thing we push towards is a 15K PIF.
00:14:15>> Okay. >> All-inclusive telemed with one-on-one
00:14:19coaching to master the whole shebang.
00:14:22Obviously, we can scale the price, but this is just initially where we're at.
00:14:25>> Yeah, so you're selling 10 per month at that price, is that correct?
00:14:27>> Yeah, just about.
00:14:29>> Okay, 10 per month at 15.
00:14:31Okay, what's the funnel right now?
00:14:32>> Meta ad into VSL page with an application.
00:14:39Sales kick utilized to financially qualify.
00:14:43Setter doing manual touch points into a one sale close.
00:14:48>> So ads, VSL, application, qualify, SDR, so the touch point.
00:14:55Tell me about that.
00:14:56Is that a phone call or is that?
00:14:58>> So we actually, first off, shout out to your ACQ AI.
00:15:03That thing is disgusting.
00:15:04>> Thanks, man.
00:15:05>> So completely redid everything and will be implementing the whole double dial,
00:15:10the whole funnel system that you talk about in all the sales processes.
00:15:14So these metrics are off of what we used to do.
00:15:17>> Okay, that's fine.
00:15:18>> We will be implementing what you kind of consider best practice.
00:15:21>> Okay, so what were the metrics that, what was CAC before this?
00:15:25>> Yeah, so okay, so daily ad spend 1,300.
00:15:29We were a 3,500 CAC, AOV about 12K.
00:15:34Upfront cash collected ROAS 5.4 and rev ROAS 7.8 over the last quarter.
00:15:41But caveat, it was extremely inconsistent.
00:15:45Three weeks of just not there and then a single week of randomly hitting good.
00:15:50The last piece that I'll add is that was in utilizing payment processors such as WAP.
00:15:57To where they take, which I mean, it's nice for scaling.
00:15:59It's nice to get cash, but I don't know if it's a long term move.
00:16:02>> Mm-hm, well you mean you had a BNPL option, buy now, pay later type thing.
00:16:06>> Yep, yep. >> Financing, yeah, yeah, yeah.
00:16:08Okay, so a couple things.
00:16:10So the ads themselves, who are in the ads?
00:16:15Chris, predominantly from a cultural standpoint, and then myself,
00:16:18Mitchell Funnel is what we're going for.
00:16:19He is not gonna be the salesy person.
00:16:23Yeah, and then VSL is shared between the two of us to show the correlation and
00:16:27co-ownership.
00:16:29>> Got it, okay, so I'll say this.
00:16:31I think the spend might be too low,
00:16:34which is what basically insufficient volume feels like volatility.
00:16:38Because if you think about it, if you have $3,500 CAC and
00:16:42you're spending $1,300 a day, you're gonna get one sale every three days.
00:16:46It feels very lumpy.
00:16:47And if for some reason you don't have a sale every three days and
00:16:50it just means you have nothing for six and then you have two in a day, right?
00:16:53It's still the same percentage, but it feels like nothing's happening.
00:16:56And so when you have higher price point stuff and CAC is higher,
00:17:01you need daily spend to be significantly higher.
00:17:03Which is then gonna create the second problem,
00:17:04which is you're gonna not have enough creative to fill the funnel.
00:17:08Normally I would say we want more top of funnel stuff, but
00:17:10given the size of CBOM's audience and brand,
00:17:13I don't think he needs more recognition.
00:17:15>> No. >> But you will need more creative.
00:17:18So how many- >> Sorry, go ahead, go ahead.
00:17:22>> How many pieces of creative are you basically making per day that
00:17:27you're launching?
00:17:28>> Last quarter, not as consistent as we'd like, running into five new creatives for
00:17:35myself and five new creatives for Chris.
00:17:38>> Per day?
00:17:39>> Per week.
00:17:40Yeah, so with your spend volume, I would like to see, I don't know.
00:17:46I mean, kind of like a lot, man.
00:17:52To put this in context- >> 100x, we're talking 100x.
00:17:54>> Yeah, it's a lot more.
00:17:56So put it in context, we put out 250 new ads per day.
00:18:05Now, our spend's higher, but if we're at even 100 times spend at 100,000 a day,
00:18:11we'd still have significant, you're putting out five per week.
00:18:14We're putting out 250 per day times seven.
00:18:17We're at 1,500 per week and you're at five.
00:18:22And so the volume difference is dramatic, right?
00:18:25And so I would say the first thing is, number one, ads have to go from five per
00:18:29week to probably closer to 100 as kind of a baseline in terms of volume, number one.
00:18:36Number two, I think we need to increase spend from,
00:18:42you're spending, was it 1,300 a day?
00:18:45>> Yep.
00:18:46>> I would like to spend 5,000 a day.
00:18:49No, you're at 150 a month.
00:18:50So I probably want to increase spend, I want to get to at least CAC, right?
00:18:56Just so you know what I'm thinking with this.
00:18:58It's like, can we spend 3,600 a day?
00:19:01Because at 3,600 a day, that means we can get one customer a day with our existing.
00:19:05Right?
00:19:05>> Yeah.
00:19:07>> That's just from a perspective change.
00:19:11Number three, what's the conversion on the funnel?
00:19:17So we've got- >> Yeah.
00:19:20>> Yeah, walk me through some of the stats here.
00:19:22Where's the big drop off?
00:19:23>> Yeah, so we're CTR 0.8%, 350 per qualified- >> CTR is 0.8?
00:19:31>> Mm-hm.
00:19:31>> That's low, especially with Chris' brand.
00:19:36>> Yeah.
00:19:36>> What's the offer?
00:19:39>> So that's, again, shout out to your AI.
00:19:42We have that solidified now.
00:19:43Prior did not have it solidified.
00:19:45>> Okay.
00:19:46>> But where we're at right now, it is a six.
00:19:50So basically, it's like get abs in a year and completely change life with our system.
00:19:55>> Okay. >> Otherwise, we'll coach you for
00:19:57an additional three months free.
00:19:58>> Okay.
00:19:59What's the new offer?
00:20:00>> That's the new.
00:20:01>> That's the new one.
00:20:02Okay, got it, okay.
00:20:03And the old offer was what?
00:20:05>> Come in and work with us.
00:20:06>> Okay, yeah, I was like six pack in a year is actually pretty believable.
00:20:10I actually really like that.
00:20:11>> Well, so our norm is two and a half percent every four weeks.
00:20:14So it's like someone could be 45% body fat and get down to ten in a year.
00:20:18And we have an incredible coaching system and
00:20:21an incredible accountability and tracking data system.
00:20:24So we can do a conditional guarantee very easily.
00:20:28>> Yeah, so- >> But yeah, that's the new system.
00:20:31>> Okay, and the 15Ks includes everything, all the telemed already built in?
00:20:36>> Correct. >> Okay, got it.
00:20:37So number one, go from five ads a week to 100 ads a week.
00:20:41And you can do a blend of statics and video there.
00:20:44And the way that I would get more video is, again, it's just you walk in with
00:20:48an iPhone, take the best winners, put it on a teleprompter app so
00:20:51you can just see all your hooks, and just walk and talk, right?
00:20:55Click, click, click, click, click, like in an hour you should be able to get 20, 30 ads.
00:20:59All right, if you and Sebum do this, it's like they're 60.
00:21:01And then you can take the best performing of those, put those as static words with
00:21:05images of Sebum, obviously, cuz that takes him no time.
00:21:08So that's how you can get to 100.
00:21:10And once you find winning hooks, you basically just keep reusing the hooks and
00:21:13just tweaking the meat a little bit and changing the background.
00:21:15That's one.
00:21:16Two, increase the spend ideally to CAC, which would be 3,600 or 3,500 right now,
00:21:21per day.
00:21:21I know that feels a little bit gutsy, but you already have a proven model.
00:21:24And that's with all the steps not optimized, right?
00:21:27We're gonna optimize the steps.
00:21:29The front end offer you're gonna change, I like the six pack in a year,
00:21:31especially with his brand, it feels very believable.
00:21:34And then on the, where are you optimizing the pixel from an advertising perspective?
00:21:39>> So other than the media buyers just looking at the outcome of did someone buy
00:21:45or not, they are feeding information back into it based on one closes,
00:21:50if that's what you're asking.
00:21:51>> So closes, because you're not gonna have enough volume.
00:21:54I mean, it's good to have it, but it's not gonna be enough of a signal to the pixel.
00:21:57Like, you want something that you can get like 1,000 on.
00:22:00And so I would look at probably the application step,
00:22:04would be the step that I would try and optimize around.
00:22:06And on the application, have a different thank you page for unqualified versus
00:22:09qualified, which would probably be a huge percentage of the traffic anyways.
00:22:12>> Yep.
00:22:13>> And then just make sure the pixel is on the qualified only thank you page.
00:22:16>> Yeah, okay.
00:22:17May I ask this last question?
00:22:20If you were to try to do this in half the time,
00:22:23what would be the single thing that you would focus on the most?
00:22:27>> It's gonna be volume and creative.
00:22:28I mean, volume and creative and spend are the two,
00:22:31basically that's what's gonna explode the front end.
00:22:34>> Yeah.
00:22:36>> Like you need to spend more to get more at bats.
00:22:39>> Sure.
00:22:39>> And to spend more efficiently, we need a better offer, a better creative, and
00:22:42that's what we just did.
00:22:44And then to make sure that we're actually getting served the right audience,
00:22:46the pixel on the correct qualified lead, thank you page.
00:22:51>> Yeah. >> The rest of it seems fine.
00:22:53But at least for what can you fix right now, do that first.
00:22:56>> Yeah, okay.
00:22:57Perfect. >> Rock and roll.
00:22:58>> Well, thank you, Alex, I appreciate you.
00:22:59>> You bet you, appreciate you, man.
00:23:00Congrats, I'm glad the AI served you well.
00:23:03>> Yes, sir, appreciate it.
00:23:04>> All right, talk soon, man.
00:23:05So that was Justin King from Standard.
00:23:10He's part of Vantage, which is community for a million dollar plus business owners.
00:23:14And so if you're like I see in the chat, how are these calls being sourced?
00:23:19I think they put a link in there.
00:23:20If you are interested, you can opt in.
00:23:25We priced it as cheap as that audience was willing to.
00:23:28I just said, how cheap could I make this where you'd still believe me?
00:23:31And they said $1,000 a month, and I was like, great.
00:23:33So, fun, fun step.
00:23:35You still have to verify your income, FYI, that's how we keep the quality high.
00:23:39All right, with that, let's slay the day, baby.
00:23:42>> Hey, Alex.
00:23:44>> Hello.
00:23:46>> Hello.
00:23:47So my name is Nadia.
00:23:49Just to give you some context, my fiance and I are planning a baby soon.
00:23:54And if I can't make my business work,
00:23:57now I definitely won't be able to with less time and less sleep.
00:24:01So for two years, I've basically worked 12 hour days doing everything myself,
00:24:07telling my family I'm building the future.
00:24:10But in truth, I've been pretty much stuck in place.
00:24:13So I run a marketing agency for realtors and
00:24:17home improvement companies in Slovenia.
00:24:21So Facebook ads, content, and appointment booking.
00:24:24I have four clients at total of 3K MRR.
00:24:28>> Okay.
00:24:28>> Last year, I made 30K.
00:24:30And my goal is, so in the last 12 months, I made 30K.
00:24:34And my goal is 30,000 net profit per month.
00:24:37>> Yeah.
00:24:37So let me ask you a couple questions here.
00:24:40>> Yeah.
00:24:41>> Can you do the exact same thing in the U.S. as you do in Slovenia?
00:24:46>> Yeah, I guess I could.
00:24:49But the market there is, at least for the realtors, is probably a bit different.
00:24:55At least as far as I know.
00:24:58So there would definitely be some changes I would have to make.
00:25:01Yeah, I currently make educational content for them,
00:25:07which is the only fixed revenue source I have, since they pay me a retainer on that.
00:25:13>> And so you have to make content.
00:25:14>> Yeah, I make them content, which performs really well.
00:25:19But then I also do lead gen for them.
00:25:21>> So you run ads?
00:25:22>> Yes, Facebook.
00:25:24>> And you charge 3K a month?
00:25:25>> No, 3K a month is like all together from all the client.
00:25:31So yeah, I'm making 15 to 25% on revenue share.
00:25:37And some on, yeah.
00:25:38>> So I want to give you the best piece of advice that I can give you.
00:25:44So right now, is all of your content in Slovenian right now?
00:25:48>> Yeah, so I actually, I don't make any content if that's what you mean.
00:25:54>> Okay, how do you attract customers right now?
00:25:57>> Code calling.
00:25:59I've basically had the same clients for the past like six months.
00:26:03Because like I mentally, I can't do anymore.
00:26:06>> Yeah, so there's a couple things right now.
00:26:10So number one, the customers, what you're charging versus what you're delivering is mismatched.
00:26:16You're not charging enough for the amount you're doing.
00:26:18That's thing one.
00:26:19Thing two is in order to get basically appropriately priced,
00:26:25you most likely want to go after a bigger market.
00:26:29Now normally, I don't say like switch markets and things like that.
00:26:31But you're at the very beginning.
00:26:33And so it's like what's 100x force multiplier on the skill set you have?
00:26:37You already speak English, right?
00:26:39So I'd rather you just like can we, can we, because like if you sell into the US market,
00:26:44like you can sell $1500, $3000 per client.
00:26:48It's just the dollar stronger and especially for what you're doing.
00:26:54You're doing content and ads, which is crazy.
00:26:56Most people literally only pick one or the other.
00:26:58You're doing both.
00:26:59>> Yeah, so you suggest like switch to the US.
00:27:05>> I think that's what we need to do long term.
00:27:08Short term, I'd like you to increase revenue.
00:27:10So how do we do that?
00:27:12So you're just doing cold calls.
00:27:14You're not making content for yourself, but you are making it for your customers, right?
00:27:18>> Yep.
00:27:19>> How much additional effort would it be for you?
00:27:21Like if you're making them content, how can you not make your own content?
00:27:24>> So that was actually one of my additional questions I wanted to ask if I should.
00:27:29>> 1000%, yes, not even a question.
00:27:32100% you should be doing that.
00:27:33So what I would do is do it in Slovenian and then have it translate
00:27:37and then put the captions in English.
00:27:38That way there's no accent.
00:27:41If that's where you're more comfortable.
00:27:42And I would make the content about you making their content.
00:27:46So basically, think of it like this.
00:27:48If you were to teach someone how to do everything that you do in your business
00:27:51without them paying you, what would you teach them?
00:27:53That's what you make your content about.
00:27:55>> Okay, make it in Slovenian and then just have captions in English.
00:28:01>> No, no, get AI voice translation for the content.
00:28:06Yeah, exactly.
00:28:06>> You think that would be an issue?
00:28:09>> Yeah, because I want it to be for now and later.
00:28:11So it might not even be, because it's, are you on Instagram?
00:28:14I'm guessing that's where you're making the content for them.
00:28:15>> Mostly Facebook.
00:28:17Instagram is not doing that well.
00:28:19>> Okay.
00:28:20So I mean, the thing is the additional effort to do on both platforms is almost nothing.
00:28:23You can probably charge them for that too as a side note.
00:28:25But for you, you can take the same thing.
00:28:28Go on TikTok, go on Facebook, go on Instagram, post it.
00:28:31Make sure that you have the translations in place.
00:28:33I would, if you wanted to be, because sometimes the algorithm would be weird.
00:28:37You can have a U.S. page and a Sylvanian page.
00:28:39Again, it's not a lot of additional extra work to just duplicate the effort.
00:28:42And so what this does is number one, this builds your content strategy while building theirs.
00:28:46So we can solve for both today in terms of lead gen.
00:28:49And then tomorrow in terms of the fact that you're going to have U.S. customers,
00:28:52which you can charge U.S. rates.
00:28:53And so I honestly just want you to take whatever you're charging and add a zero to it.
00:28:57And that's your U.S. price.
00:28:58>> Okay.
00:29:00>> Seriously.
00:29:01Now in terms of tactical, well, that was tactical.
00:29:04But the next piece that I want you to do is, are you familiar with ManyChat?
00:29:08Is that how you have them working leads or getting leads?
00:29:10>> No, I watched the educational content you put like two weeks ago.
00:29:17I watched that.
00:29:18So I actually, I'm just basically implementing it for the organic site.
00:29:22So that would be just additional sorts of leads besides the ads.
00:29:27So I'm in the process of implementing that, yeah.
00:29:31>> Okay, and okay.
00:29:37So number one, you make content about helping them make content.
00:29:43And so you try to replace yourself by teaching the public, the world,
00:29:48every single thing you do to build content.
00:29:51Hold nothing back.
00:29:52All right, I'm telling you.
00:29:53You want to hold nothing back?
00:29:53>> Be very specific just for these two niches, I guess.
00:29:57>> Yes.
00:29:58>> For real estate and home improvement.
00:29:59>> Yes.
00:30:00You want to show them everything.
00:30:01So the automations, the AI that use everything that you to run the business better,
00:30:05I want you to show all of it.
00:30:07Because when people see how much work you're doing, they're going to be like,
00:30:09this guy knows what he's doing, and I don't want to do that work.
00:30:12And then they inquire, all right?
00:30:14Thing one.
00:30:14Thing two, turn on the ManyChat automation so that when you are posting,
00:30:18put a CTA in the first line and the video.
00:30:21And then new followers automatically get a DM where you can sort them and say,
00:30:24hey, are you here for free stuff?
00:30:26Or do you like to grow your real estate, whatever?
00:30:30And then you can start working those DMs as leads.
00:30:33Number three is that from the leads that come in from that U.S. Instagram,
00:30:37change the prices to U.S. by adding a zero and offering the same thing.
00:30:42That's what I would do.
00:30:43>> Okay.
00:30:46>> And come up with a sexy lead magnet.
00:30:48Do you have a lead magnet?
00:30:49>> For myself?
00:30:51No.
00:30:51>> Well, yeah.
00:30:52Make one for yourself that's 100 days of content for real estate.
00:30:56100 days of content in 100 minutes.
00:30:58Ooh, ooh, that sounds great.
00:31:01I like that.
00:31:01100 days of content in 100 minutes.
00:31:03That's your CTA.
00:31:03>> Yeah, I basically have to completely rethink how to actually do content
00:31:09because it's probably very different from for the U.S. market at least.
00:31:12>> I actually don't think so.
00:31:14It's, they're solving the same issues.
00:31:17The algorithm is still humans.
00:31:20It's what humans find interesting.
00:31:21>> Okay.
00:31:22>> Because I'll tell you this, yeah, go ahead.
00:31:25>> Yeah, right now the best content that's working is actually about like taxes and like the laws.
00:31:32>> Yeah.
00:31:32>> So what's actually allowed and how to do some particular part of let's say selling a house.
00:31:37>> Yeah.
00:31:38>> So those things are different.
00:31:40>> Those will be different by country.
00:31:41I agree there.
00:31:42But it's not like it's not hard to find out.
00:31:44If you have a concept that works, just make the U.S. version of the concept.
00:31:48>> Okay.
00:31:49>> And yes, this is a major departure, but the benefit of what you're doing right now is that
00:31:54if you were super, super, super far along, it's much heavier to change.
00:31:58But since you're earlier on in the course,
00:32:00it might as well shoot for the moon and get it right the first time.
00:32:03>> Yeah.
00:32:04>> But this still allows you to build for today and tomorrow.
00:32:09You're still going to make your Slovenian content.
00:32:10We're going to duplicate it into the U.S.
00:32:12We're going to add the CTAs in terms of the 100 to 1, 100 content in 100 minutes,
00:32:16100 days of content in 100 minutes.
00:32:18We'll have our new followers that we get and the people who respond to the lead magnet.
00:32:21And when you get a U.S. person, add a zero.
00:32:25>> Okay.
00:32:25So with the current clients, I just keep them as cash flow?
00:32:30>> For now.
00:32:31Yeah, you got to pay bills and feed the fam.
00:32:34>> Okay.
00:32:35So there's -- okay.
00:32:37What about for -- so this is more just specific for realtors.
00:32:42What about home improvement?
00:32:44So there I've actually been struggling to do content for them.
00:32:47>> Well, they're two different avatars.
00:32:49Which one did you rather serve?
00:32:50>> Yeah.
00:32:52>> Well, I've been serving realtors more.
00:32:55>> Yeah.
00:32:56So then just focus on realtors.
00:32:57There's more than enough.
00:32:58You don't need two avatars.
00:33:01There's two different offerings, two different customers, two different businesses.
00:33:03>> And just go after the U.S. market.
00:33:06>> Yeah.
00:33:06>> Okay.
00:33:09>> So last point, focus on realtors.
00:33:12Just pick.
00:33:13>> Okay.
00:33:15>> Cool?
00:33:17>> Cool.
00:33:18>> Appreciate you.
00:33:18>> Thank you so much.
00:33:19>> No, you bet, man.
00:33:20I know it's going to be -- you're in a hard time, but that's a very clear plan.
00:33:23>> Okay, yeah.
00:33:25>> All right.
00:33:26>> Thank you so much.
00:33:27I've been watching you for a long time, so.
00:33:29>> I appreciate you, man.
00:33:30Rock and roll.
00:33:31And I'm excited to hear how things go in six months.
00:33:33All right?
00:33:33>> All right.
00:33:38Alex.
00:33:39>> Oh, hello.
00:33:40>> Hello, hello.
00:33:42My name is Yash, man.
00:33:43How you doing?
00:33:43>> Yash?
00:33:45With a Y?
00:33:45>> Yes.
00:33:46>> What's up, Yash?
00:33:46>> Yes.
00:33:47Not much, man.
00:33:49Love the hotline.
00:33:50Excited.
00:33:50So here, I'll give some context.
00:33:53I started my business around two years ago.
00:33:55I quit my job to go all in.
00:33:57And I even convinced my brother to quit his safe nine to five job and join me.
00:34:01Thing is now that he and his wife want to start a family.
00:34:05But since we're working all day on our own little business, our little baby,
00:34:08he just doesn't have enough time.
00:34:09So I feel kind of bad and kind of responsible for that.
00:34:12So I want to figure this out and grab this thing so you can do that.
00:34:16So I have an AI SaaS that helps real estate agents and photographers.
00:34:20We make 3.3 million a year.
00:34:24And we'd like to get to 10 million a year.
00:34:26But I think what's stopping me is my churn.
00:34:30Like every week, I get 150 subscribers.
00:34:32But I lose like 100 or so.
00:34:34So I think my business is going to stop growing and even decline in the off season.
00:34:39So that's what I'm going to care about.
00:34:40All right.
00:34:41So walk me through onboarding right now.
00:34:45Onboarding.
00:34:46Yeah.
00:34:46So the funnel right now is you can sign up with no credit card.
00:34:50Onboarding is we just implemented this last week.
00:34:53We have an onboarding checklist.
00:34:55Okay.
00:34:55So we have videos and steps on how to, you know, activate and stuff.
00:34:59And then we have product tours and stuff that lets you go through the platform,
00:35:04make your first video, edit some photos.
00:35:06Yeah.
00:35:06And get back to you as soon as possible.
00:35:08Okay.
00:35:09And so you're getting 150 a week.
00:35:12So that's 20-ish a day, right?
00:35:13Roughly, yeah.
00:35:16And do you have any human that is involved in the onboarding?
00:35:18Right now, no.
00:35:21What's the price point?
00:35:22We sell, our most basic package is 60 bucks a month.
00:35:27And we also sell it for like 360 for the year.
00:35:30So we try to do annuals as much as possible to reduce term.
00:35:33Got it.
00:35:33So what are the activation signals that you have determined so far?
00:35:38Right now, the main product is photo to video.
00:35:41So the main thing is going to be creating your first video within your first seven days.
00:35:45And then another one is editing photos, like AI virtual staging and stuff like that.
00:35:50We just pulled the data around 50% make their first video in the first week,
00:35:55but only 10% edit their first photo.
00:35:57Okay.
00:35:58So we're trying to increase those activation rates.
00:36:00Okay.
00:36:01But does making your first video correlate to them sticking?
00:36:04I believe so.
00:36:07Yeah.
00:36:07Well, I would double check, but make sure you know that, right?
00:36:11And do you have the metrics on people who edit as 10%?
00:36:15That's a separate action.
00:36:18And so we might discover, I'm going to bet there's three things here.
00:36:21Number one is who is the actual customer.
00:36:24So like of the people who are signing up for this, number one is who is buying.
00:36:30Number two is what are they doing?
00:36:32So we have make your first video, use the editing and what source are they coming from?
00:36:38Who are they?
00:36:39Okay, so that's kind of four different variables that are going to affect
00:36:42which one has the highest conversion rate in LTV.
00:36:45And so I think the vast majority of what is missing right now is
00:36:48I think you should be doing more hands-on onboarding.
00:36:51Because the onboarding checklist right now is at all automated.
00:36:54Like it's like a workflow.
00:36:55Yeah.
00:36:57Yeah.
00:36:57I mean, it's just a UI dashboard thing.
00:36:59Okay.
00:36:59We have, we're trying to do maybe some weekly trainings or something like that to help with
00:37:03onboarding, but let me, let me try and like, we need to, we need to atomic bomb this and
00:37:08get out of the, like, this isn't scalable mindset for the short term and then we'll
00:37:12make it scalable long-term.
00:37:13So I would like you to do, I mean, real world, like to start two onboardings a day,
00:37:20one in the morning, one at night.
00:37:21And when they sign up, you book them for the onboarding automatically so that you can talk
00:37:26to these customers and then manually walk them through.
00:37:28I guarantee your onboarding checklist is going to change as soon as you actually go over
00:37:31their shoulder and watch them do it.
00:37:33Because you'll also see the friction in your process, right?
00:37:37But you'll also have such, you'll have way more buy-in and you can usually handle the
00:37:40entire onboarding in 20 minutes.
00:37:42Whereas they're trying to like, you know, suffer their way through it.
00:37:45Does that make sense?
00:37:45Yeah.
00:37:47Yeah.
00:37:47So just to clarify, would this be like a group onboarding every day, like twice a day or like,
00:37:53yeah.
00:37:53Well, okay.
00:37:54So group, yeah.
00:37:56A group's onboarding.
00:37:57Your brother can do one, you can do the other, whatever.
00:37:59That's number one.
00:38:01Number two is you need to segment the data by channel.
00:38:05Number one, number two, by avatar, which I'm going to guess there's some discriminating
00:38:10criteria that you can figure out, which is probably like how many houses do you sell last
00:38:13year or how many houses did you sell this year?
00:38:16That's going to be, that'd probably be my biggest signal guess.
00:38:18And then we have, what are the, from an action perspective, which is we have those two actions
00:38:23that we know so far, which is video and editing.
00:38:25And so our, what we're going to try and find, because we might find out that people from
00:38:31a specific channel suck and we might find out that one specific avatar is the only avatar
00:38:36and they stay and the LTV of that customer might be a thousand.
00:38:38Right.
00:38:39And so then what we'll do, because we just need this data to basically, there's only two
00:38:45things that we can do right now.
00:38:46And then as soon as we have that data, there's a hundred other things we can do.
00:38:49But this is like the constraint right now.
00:38:51So we're doing the Zoom onboarding so that you can short-term get more data and probably
00:38:56decrease churn just because of in-person onboarding is going to do better.
00:38:59Number two, when you're doing those in-person onboarding, you can be able to witness the
00:39:03process flows.
00:39:03And I guarantee you'll be able to remove friction from that process to get it to happen faster
00:39:07and make sure they're doing both those steps.
00:39:09Number three is that once we have the inbound data, you'll be able to see which avatars are
00:39:15the highest converting and the channels.
00:39:17And then all of that data then routes back into the front end, which is our messaging
00:39:21is to target this specific avatar on this specific channel.
00:39:25And then when they come in, we do the Zoom onboarding and make sure that every single
00:39:29person passes go and checks the boxes.
00:39:30Okay.
00:39:32Okay.
00:39:33That makes sense.
00:39:34Yes.
00:39:34One thing that I'm thinking about right now is the main reason a lot of people churn is
00:39:38because they only have like four houses a year, right?
00:39:41So they just don't need this every month.
00:39:42So I guess you're saying like the ads wouldn't map exactly.
00:39:45It was like, hey, not screw those guys, but let's go for like the teams or 200 houses
00:39:50a year or photographers.
00:39:51I mean, teams is a great idea.
00:39:53Also, if you know that, let's say it's four houses a year minimum, let's say that's the
00:39:57number, two options for you.
00:40:00Option one is you can just make everyone do annual.
00:40:02And I would say, here's why.
00:40:03Or if you know, if let's say four houses a year is the minimum, which is one house a
00:40:07quarter, then you can just build quarterly.
00:40:08So I would say like your quarterly billing and you have annual billing.
00:40:11Does that make sense?
00:40:13Sure.
00:40:14Because we want the value cycle to be aligned with the billing cycle.
00:40:18Yeah.
00:40:20I think after we added the annual option around 40 to 50% of people take that now, which is
00:40:25a bump.
00:40:26But yeah, I mean, it's buy six, get six, right?
00:40:29Yeah, roughly.
00:40:30Yeah.
00:40:31I'd be curious to see what happens if you remove the monthly and only have annual.
00:40:35Me too.
00:40:37Me too.
00:40:38It's scary.
00:40:38I mean, it's an easy task, man.
00:40:39You can run in a week and find out.
00:40:42It's not like you're, I mean, that's actually the easiest test in the world because it's
00:40:45not like you're even changing your price.
00:40:46You're just removing an option.
00:40:47True.
00:40:49Okay.
00:40:49So let me recap this.
00:40:54Number one, zoom group onboarding.
00:40:56Number two, activation points on that onboarding, which is going to be video and editing.
00:41:03Get that done in 20 minutes and remove friction from the process.
00:41:06Three, get the data of channel and avatar to see which ones of these have the highest conversion.
00:41:11And since you won't be able to wait to see churn because so many people are going to be
00:41:14annual, you have to just check, are they checking both these boxes?
00:41:18And then number four, I would test the annual only.
00:41:22But once you see it, even if annual only is the winner, I like keeping monthly there because
00:41:27it keeps you honest.
00:41:29And then basically once you truly solve churn on monthly, because it gives you a much faster
00:41:33feedback loop, then you basically can push everyone to annual because then the economics
00:41:38are better.
00:41:38Does that make sense?
00:41:39Right.
00:41:40Right.
00:41:41So we keep them monthly because we need the signal.
00:41:43Yeah.
00:41:45For short term and then long term.
00:41:46To fix the product.
00:41:48Yeah.
00:41:48And I wouldn't even try to like, I wouldn't try and scale past where you're at right now
00:41:52until you fix this.
00:41:53And then scaling will simply occur.
00:41:55Because even if you don't change your front end, if you cut your turn by two thirds, the
00:41:58business will triple.
00:41:59That gets you to ten.
00:42:00Sure.
00:42:01Yeah.
00:42:02Definitely.
00:42:03Rock and roll?
00:42:04Rock and roll, man.
00:42:06I'll try that out.
00:42:07And then just one more thing on booking the onboarding call.
00:42:09Like, what does that flow actually look like?
00:42:11Is it like a button in the UI?
00:42:13Is it like an email that says book your onboarding?
00:42:15Oh, dude, it's an atomic bomb.
00:42:17I mean, we're going to text, we're going to call, we're going to email in the actual flow
00:42:22itself as your next step is book your onboarding call.
00:42:24We've got two a day.
00:42:25They're with a real person.
00:42:26So we actually get you the most out of this thing.
00:42:29Okay.
00:42:31100%.
00:42:31I'm going to try that out.
00:42:32Appreciate you.
00:42:34And good luck to your brother.
00:42:35Thanks so much, man.
00:42:37Have a good one.
00:42:38You bet.
00:42:38Bye.
00:42:38Bye.
00:42:39So for those of you who are just joining us, this is for MOSI Hotline, where I'm taking
00:42:45calls from Vantage, which is our million dollar plus business owner community.
00:42:48It's a thousand bucks a month.
00:42:51I don't like hiding that.
00:42:52The reason for that is because when I surveyed the group of million dollar plus business owners,
00:42:56I said, what is the absolute cheapest price that I can price this at where you think you'd
00:43:00still think that it could actually deliver.
00:43:02By the way, if you're curious, the price point that was maximum revenue when I did the survey
00:43:06was 5,000 a month, which I very strongly looked at because who doesn't want a revenue max?
00:43:12But the goal is to build the largest and best community of million dollar plus business owners.
00:43:15And so ACQ AI, which Justin before this was talking about is one of the biggest things
00:43:22that we include.
00:43:23And if you don't know what ACQ AI is, I have spent two and a half years doing consults every
00:43:29single week with business owners, deep dives into businesses.
00:43:34So like 20 page packets on the businesses to figure out exactly what they need to do.
00:43:37These are for bigger businesses.
00:43:38And we've trained the AI on every single one of my private consultations, which is now like
00:43:45500 plus the three or 4,000 that my whole team has done as well.
00:43:49And we're trying to build the most advanced small business AI out there with the stuff
00:43:56that's working today across industries.
00:43:57And that's why we have this whole advisory practice because that's my long-term play.
00:44:00And so more amazing businesses coming in is the how the flywheel spins.
00:44:05So you're a million dollar business owner.
00:44:06That's what it is.
00:44:06And that's what these calls are.
00:44:07All right, let's do it.
00:44:09Next one.
00:44:09The link's somewhere.
00:44:11You can probably find it.
00:44:11All right, Alex, good to be talking with you.
00:44:13What's up?
00:44:14Hey, my name's Alex.
00:44:15I'm out of Greenville, South Carolina.
00:44:18I founded a turnkey construction safety company.
00:44:21And so right now what I'm looking at is I'm working 60, 70 hour weeks.
00:44:28The phone's nonstop.
00:44:30And when I'm at the house, my mind's still trying to figure out work problems.
00:44:34So I'm not always present with the people that I care about.
00:44:36And I've got a third baby on the way.
00:44:38And I'm missing some of those moments that you don't get back, right?
00:44:41So business-wise, we're making about $2.1 million.
00:44:45I've got a goal of getting to $5 million by the end of this year.
00:44:49And we've experienced some rapid growth.
00:44:51So I'm starting to get-- I'm not starting to.
00:44:53I've been getting pulled back into the type of tasks where I feel really competent.
00:44:57And I was really good at as a safety guy instead of hiring the people that are better than me.
00:45:02And building those systems that really the business needs to scale.
00:45:06So I guess my question is how would you attack that problem if you were in my shoes?
00:45:10What's profit?
00:45:12Profit, we're at about 22% right now.
00:45:16OK.
00:45:16So $400 a year-ish on net.
00:45:20But you're growing right now, correct?
00:45:22Correct.
00:45:25OK.
00:45:25So call it pacing $600, something like that.
00:45:28Does that sound about right?
00:45:29That's correct.
00:45:30All right.
00:45:30Sounds right.
00:45:31So I'm just trying to see what we got to work with.
00:45:32OK.
00:45:32How much does it cost to get the person that you need?
00:45:35So I'm thinking we've-- I just hired a director of operations.
00:45:40And he's in his second month.
00:45:43So he's still learning our systems and our culture and all of that.
00:45:46And then I'm looking at bringing in a person underneath him to start helping-- we field
00:45:55safety professionals.
00:45:56So we've got about 13 people across four states.
00:45:59And so really, that secondary person is going to handle managing that talent and that workforce.
00:46:05Because that's where a lot of the phone calls and the text messages and the emails come from.
00:46:09So I think, really, for another person that we need, they'd probably be, I'd say, about
00:46:13a $150,000 guy or gal.
00:46:15OK.
00:46:16Is your director going to watch this?
00:46:20Because I can-- I'll remove your name, too, if that helps.
00:46:24He will not watch this.
00:46:27OK.
00:46:27So I'll tell you-- let me ask one question before I say what I'm going to say.
00:46:30Did you feel relief from that director coming in?
00:46:34Huge relief.
00:46:37OK.
00:46:37OK.
00:46:37Fine.
00:46:38Then he can live to fight another day.
00:46:39OK.
00:46:43So the director came in.
00:46:44You're going to hire some guy underneath him that's $150,000.
00:46:46So what's stopping you from doing that right now?
00:46:47So I think what I'm running into is, as we grow and the demand continues to increase,
00:46:57I'm also trying to acquire the talent and get the talent in while executing all the tasks.
00:47:02So I think that's where I'm stuck.
00:47:05Got it.
00:47:05What's your hiring funnel right now?
00:47:08It's been referral.
00:47:11Just proximity people that we see on job sites and we've worked with.
00:47:14And now we're starting to get on the LinkedIns and the Indeeds and things like that.
00:47:19Yeah.
00:47:19So I mean, referral is obviously always the best way to grow.
00:47:22Do you have 13 guys in the field?
00:47:25Do they know people?
00:47:26They do.
00:47:28OK.
00:47:29What incentive do you have for your referrals right now?
00:47:31So currently, our referral program is all based around finding other safety professionals that
00:47:37we can ship out through job sites.
00:47:39So we pay a bonus program of essentially locating the guy.
00:47:43And if we hire him, we'll pay $500.
00:47:45If they stay for 90 days, then we'll pay them an extra $1,000.
00:47:49And that was built in your courtroom about two weeks ago.
00:47:53So that's currently being issued.
00:47:57I love the spirit.
00:47:58We need to tweak one important thing.
00:48:00How much do you make per $150,000 per year, guy?
00:48:06That per-- our average person right now is about $70,000.
00:48:11And we make probably about $200,000 off of them.
00:48:15So I'm not sure with this guy.
00:48:17I don't have that number.
00:48:17So let's just use those numbers, right?
00:48:19$70,000, right?
00:48:21And well, how much do you think this guy will make you?
00:48:25It's more than that, correct?
00:48:28So yeah, it's-- yes, yes.
00:48:31OK.
00:48:31He'll make more than that.
00:48:32But I think he's going to take me out of-- we have one funnel
00:48:36for staffing, which is what I've been talking about.
00:48:39We have other funnels, which is [INAUDIBLE]
00:48:40and things like that, that pulls me out from the job sites.
00:48:43And I think that person will probably revenue--
00:48:46I'd say at least a quarter mil from this guy.
00:48:49And this guy's $150,000?
00:48:54Yes.
00:48:54Imagine.
00:48:55So that $250,000 is extra or in total on $150,000?
00:48:58I think it would be in total, where we stand right now.
00:49:05Yeah, I don't love that.
00:49:07I like the $70,000 to $200,000 better.
00:49:08I like those a lot.
00:49:12Yeah.
00:49:13So let me-- I'm going to do a couple of things.
00:49:16So number one is on the new referral program
00:49:20that you're about to roll out or just rolled out,
00:49:22I just think the economics need to be changed.
00:49:24So you have your $500,000 and then $1,000, so that's $1,500 total.
00:49:27For me, if I know that somebody can make me $130,000 in gross profit,
00:49:32I'm willing to pay 10%, 20% of that, like no problem.
00:49:37And so I think that if you made this thing like $10,000 or $15,000,
00:49:40I'll bet you guys would be significantly more responsive at working their networks.
00:49:44Do you agree?
00:49:45100%.
00:49:46So I think number one-- because if you're going to pay a recruiting firm that much,
00:49:50which you would easily pay 10% or 20% for a kind of repeatable role like this,
00:49:55you'd pay $10,000 for that role.
00:49:56So I'd rather pay my guys that than pay an outside firm.
00:50:02Yep, and we've been doing that.
00:50:03So that's a really good point.
00:50:04OK.
00:50:04So I think we go from $500,000 to $10,000 at least to start on the referral bonus.
00:50:09And it's fine because you're going to ROI it and you can still put $1,000 up front,
00:50:14$9,000 on the 90-day success.
00:50:16And I think that'll solve number one.
00:50:19Now, this more specialized role, are there specialized recruiters
00:50:24who hire for this particular person?
00:50:29There are, but we haven't had success with them.
00:50:32OK.
00:50:32Are they contingency-based?
00:50:33Some of them.
00:50:37OK.
00:50:37So this is what I do.
00:50:39When I have a one-off role, I go recruiters.
00:50:42If I have a repeatable role, I build a whole system around it
00:50:44because it's like the core of the business.
00:50:45So the guys on site, that is repeatable role.
00:50:48If you have 13, you're going to need 30 when we 3 or 4x, right?
00:50:53So that's where it's like we need to have dollars and dollars out.
00:50:55The referral program's a great start.
00:50:57We need to ultimately get into the, we run this many ads.
00:51:00Our cost of acquiring talent, just like you have CAC,
00:51:03we need CAT, C-A-T. And just like we have LTV,
00:51:06we have lifetime growth profit per employee,
00:51:07which is what revenue, gross profit we make per head.
00:51:10And then that becomes the kind of supply-side economics of that funnel.
00:51:14So that has to get made.
00:51:17And the same exact sales methods apply.
00:51:20So it's like you'll run an ad, you'll have an opt-in page,
00:51:22you'll have a VSL, right, that'll sell them
00:51:24when the company's awesome, and then you'll push them ideally to a group call
00:51:28because it takes a lot of time to take those initials.
00:51:30And then you can select the people from that group call who you think are legit.
00:51:33So that'll take some of your...
00:51:36That makes a lot of sense.
00:51:37Right, it'll remove some of that time constraint
00:51:39that you're dealing with having all these interviews, right?
00:51:40Yep, that makes a lot of sense.
00:51:44That's the repeated role funnel.
00:51:46The recruiting funnel, I would like you to spin up like at a zero.
00:51:50So at like 10 recruiters, all contingency based, and then let them work.
00:51:56Got it, okay.
00:52:01Yeah, no, I mean, yeah, so do more.
00:52:03Do more is what you're saying.
00:52:05And it's just sometimes it's a belief issue on that.
00:52:07You know what I mean?
00:52:07Like when we scaled a sales team for one of our companies from zero to 80 in 90 days,
00:52:13we had to hire 80 salespeople, right?
00:52:15And so it's like we gassed all the ads we had, we gassed all the funnels,
00:52:19and we spun up 15 sales recruiters.
00:52:21And we paid five bucks ahead, which we negotiated because we were doing volume.
00:52:24So they had a standard fee of 10.
00:52:26We said, well, I mean, we're going to get 80.
00:52:28So do it for five and we'll take as many as we can.
00:52:31And they were like, let's go.
00:52:32And so we got 15.
00:52:34And so we got 80 guys hired and then kept 50.
00:52:37And then within 90 days, we're doing 5 million a month in extra sales from that company.
00:52:41And so I think it's just a violence thing of like one or two didn't work.
00:52:44Of course not.
00:52:45It's like I worked one or two leads and I didn't find a customer.
00:52:48It's like, I mean, it's just it's a much bigger numbers game.
00:52:50Yeah, reframing my mind around treating it like a lead and trying to hunt new business, right?
00:52:58It's just hunting down that new talent.
00:52:59So that's a good reframe.
00:53:01It's a bow tie.
00:53:02So you have demand gen funnels and supply gen funnels.
00:53:05It's the same thing, but you need both in order to scale up your service business.
00:53:08Everyone misses the backside.
00:53:10Makes a lot of sense.
00:53:14I really appreciate you, brother.
00:53:15Thank you.
00:53:15Appreciate you.
00:53:16Congratulations on the business.
00:53:18Thank you.
00:53:19All right.
00:53:20Congrats again.
00:53:20And can't have a bad day with a name like that.
00:53:23Alex the great.
00:53:25All right.
00:53:29This is fun, right?
00:53:30This is cool.
00:53:31I'm liking this.
00:53:31This is great.
00:53:32Good questions.
00:53:34Meaty, beefy.
00:53:36All right.
00:53:37Hopefully for those at home, you got some got some stuff out of that 19 year old.
00:53:42How are you?
00:53:43Hello, sir.
00:53:43So my name is Jonathan.
00:53:46Huge fan.
00:53:46So a little bit about the situation.
00:53:48I have a 10 month old new baby.
00:53:50We just got a house.
00:53:52I have a mortgage.
00:53:53I can't quit my job as a nine to five emergency room nurse because my business doesn't get
00:53:58enough leads.
00:53:59So get this answer solved or being put in the right direction.
00:54:02We literally turn around the fate of my family right now.
00:54:04So we're going to have to pay for daycare soon.
00:54:061500 a month.
00:54:07Babies are really cheap when they're born, but you know, scales up.
00:54:10It's like ads.
00:54:11And then my mortgage is equivalent to my salary every month, which is six grand.
00:54:16So that's why I can't really leave there.
00:54:17So we run a mobile Ivy Drips company.
00:54:20We make $360k per year.
00:54:21We'd like to be a million a year, but what's stopping is that we don't have enough leads.
00:54:25We can figure out our Google ads and how to target our best customers.
00:54:29And CAC for Google ads is 278 right now.
00:54:32And what's the, what's customer value?
00:54:34Average LTV right now is 454.
00:54:37Blended CAC is 83.
00:54:41Okay.
00:54:41We'll just work them out.
00:54:43SEO, but to get more scale, we want it to get ads.
00:54:49And then I want it to try meta ads.
00:54:51We got a few leads from there, but I took your advice on hammering one channel first up to
00:54:55like a hundred K in spend and then.
00:54:56Okay.
00:54:59I don't think you have a CAC issue.
00:55:01I mean, it could be like realistically, you could probably at a local level, get it down
00:55:07to maybe 150, but like, I don't think that's where the, I don't think that's where the unlock
00:55:11is. I think you have an LTV problem.
00:55:13So what's the offer?
00:55:16What's the offer?
00:55:17So that's my thing.
00:55:19I read the author's book front and back.
00:55:21I can't decommoditize myself from everyone else.
00:55:25We have a $50 off.
00:55:26Everyone is $50 off.
00:55:28The risk is these, if we're not within an hour or within an hour and a half, they're going
00:55:32to go to the next person anyway.
00:55:33You can really have like, we're there right as fast as we can be.
00:55:37Sometimes it's within an hour, but if we can't, it's someone else.
00:55:40We can't really, like, I can't think of a way to risk speeds this offer against my competition.
00:55:45I'm actually thinking less about the front end thing and more about the back end thing.
00:55:49So like, yeah, go ahead.
00:55:51We do have a package that we upsell, right?
00:55:53So let's say you come in from some type of drip.
00:55:56We're able to sell either three drip or six drip package, right?
00:55:59And then that's either 1000 or 1500 or up to 2000.
00:56:03That I would be fine with a 278 CAC if we're able to target an avatar because some avatars
00:56:09would like that.
00:56:09They're fine with that.
00:56:10If I was able to target the right avatars, I could sell them on a six drip package, get
00:56:16pulled cash up front, spend more on ads, get more people.
00:56:19But not everyone is able to package.
00:56:22What percentage of people are taking the upsell today?
00:56:2710% maybe.
00:56:30Yeah.
00:56:31What's the offer when you're actually talking to them?
00:56:33Have you ever considered instead of rescue, right?
00:56:37Instead of getting a drip when you're hungover or sick, how about we get you a drip, a six
00:56:41drip package, then you can get it every time you need it.
00:56:43You prevent getting sick, get a six drip, you get a free ad on VIP, like priority booking,
00:56:49which everybody expects.
00:56:50And then you get, I think it's 20% off total price.
00:56:53Okay.
00:56:54So two things.
00:56:55Number one, the hook to get them to ask you more about the upsell is, so did you want to
00:57:02have today for free?
00:57:06And then they'll be like, wait, what do you mean?
00:57:09You're like, oh, I assume that's what you came in on.
00:57:11And then they'll be like, they'll look a little confused and you'll say, oh, what most people
00:57:16do is we have a, if you basically sign up for our recurring thing, we take today and we just
00:57:23credit it towards it.
00:57:24So it's effectively free.
00:57:26And so what most people find is obviously there's hangovers, but you might not know this, but
00:57:3190% of drip usage is more around feeling better rather than getting to feel normal again.
00:57:37And so you want to stay ahead of it, right?
00:57:40So just like you go to the chiropractor to get your back cracked once a week, or you go
00:57:44to the whatever, you go to the gym, there's your internal gym is how I think about it.
00:57:49And this is basically kind of at the microbiome level of fighting, you know, working out all
00:57:54the little cells.
00:57:55And that's what you need to do.
00:57:58Right.
00:57:59And so if you feel, imagine like you felt shitty and now you feel good.
00:58:02When you do these, when you feel good, you'll feel amazing.
00:58:04Like I've got people who stopped drinking caffeine because they're on these things.
00:58:07I say that.
00:58:08Yeah, that's me.
00:58:09I stopped drinking caffeine.
00:58:10Right.
00:58:10There you go.
00:58:11But the thing is, is that we have to get out of pathology because that's the emergency
00:58:15business and get it, you basically have to get out of the Thrive and into the Survive, sorry,
00:58:19get out of the Survive business and into the Thrive business.
00:58:21So the people who are calling you are calling you because they're an emergency and that's
00:58:27fine.
00:58:28We just need to flip emergency into ongoing.
00:58:30So I will say this about the one channel thing.
00:58:34SEO and PPC, not a lot of work once you kind of get them working, which you have right now.
00:58:40Like they're like, you just kind of just spend the AdSense, right?
00:58:43Like it is what it is.
00:58:43We need to work on the backend sales process, what I just went over.
00:58:49But I think that I would actually kind of quote break my rule and say, I think you need to
00:58:53run meta ads because you need to sell people who are in Thrive mode who want to feel better.
00:58:58Not who should feel shitty to feel normal.
00:59:00Because those are the people who are going to buy this for the long haul.
00:59:05So basically you have inbound high intent base, but their intent is for us an emergency solution.
00:59:12We need people who are interruption based who didn't wake up this morning thinking,
00:59:15oh, I'm going to go buy some IV drips.
00:59:19You need people who wake up and think, man, I feel like shit in general.
00:59:22And I need to do something.
00:59:24And then those are the people that get interrupted with an ad.
00:59:26And then those are the ones that you can sell.
00:59:28Is there any way for me to increase?
00:59:30Like I want to bang their offer.
00:59:32I'm just taking 30% off.
00:59:34It kind of reduces the margin a little bit on the, it pulls cash up front, but it does
00:59:37reduce the margin.
00:59:39You know, six drips, 30% off.
00:59:40Yeah.
00:59:41Well, what's the price of a drip?
00:59:42And also if you're selling, here's the other side of it.
00:59:45When you sell with inbound, like intent based, which is what we're talking about.
00:59:49You're getting price shopped.
00:59:50If you sell with interruption based, they didn't wake up looking at six different IV shops.
00:59:54Right.
00:59:56So you can easily have a 30% premium that you add, add one extra widget in there.
01:00:01And now you're good to go.
01:00:02So better offer for them.
01:00:06And then I can increase the price for meta ads.
01:00:07Just tweak the offer a little bit.
01:00:11Just add one little thing that's different.
01:00:12So you have, so ethically you can have two different prices.
01:00:15Right.
01:00:16And then, so I've noticed, like I've sold to some people pretty well, better than others.
01:00:21Some people would just go ahead and buy a six pack right away when I mentioned them.
01:00:24Rather than others.
01:00:25Is there any way?
01:00:26I don't even like selling the packs.
01:00:29I'd rather sell memberships.
01:00:30But the thing is member, like for me, like I know monthly recurring revenue is great,
01:00:36but for me, the cash upfront makes a difference.
01:00:38Cause I can go ahead and increase spends on my ads.
01:00:41No, I hear you.
01:00:42You can still sell a membership and then have them prepaid the membership.
01:00:45I get that.
01:00:47So instead of buying six packs, you're six months.
01:00:50Yeah.
01:00:50That makes sense.
01:00:52And then it goes month to month afterwards.
01:00:54Yeah.
01:00:55I like that.
01:00:57Is there any way you think for me to target my ideal customer with like fractal pricing?
01:01:01So to target one group instead of the other.
01:01:03Well, you're local, right?
01:01:04Yeah.
01:01:05So the way that you're going to target is with the messaging more than the targeting.
01:01:08So play around with the...
01:01:12So are you taking a testimonial video from every customer?
01:01:15We do UGC.
01:01:17When we, when we were running meta ads, we do UGC testimonial.
01:01:21Yeah.
01:01:21So every single customer makes an ad for you.
01:01:24Right.
01:01:24That's number one.
01:01:25Number two is the messaging itself in the ad needs to appeal to the thrive, not survive customer.
01:01:31Right.
01:01:32Number three is that the front end offer we need to make.
01:01:35Basically, they're going to come in for whatever, but the pitch to flip them into the membership
01:01:41is like, want to make today free.
01:01:42That's what most people do.
01:01:43Just like that.
01:01:44You want to have today free.
01:01:45That's what most people do.
01:01:46And they're like, how?
01:01:47And now they're leaning in.
01:01:48Right.
01:01:48And then number four, we're going to transition from packs to membership so that we can get
01:01:53the recurring revenue and we can still front load the cash by having them prepay for the
01:01:57first quarter.
01:01:58So start at six months.
01:02:00I mean, you can start at 12, step down to six, step down to three.
01:02:03Right.
01:02:05Downsell them.
01:02:05Downsell them.
01:02:06Downsell them.
01:02:07Good.
01:02:07But fundamentally, the only way to like, you're in a, you're an emergency business.
01:02:13Right.
01:02:14And so you have to make, it's an LTV problem.
01:02:19Like that's the issue here.
01:02:20It's an LTV issue.
01:02:21And so all of this stuff is more so one, get better customers on the front end.
01:02:24Two, have an offer that's paired with that customer on the backend.
01:02:27Now, once that starts happening, we may find they've got way more pricing power on the back.
01:02:32And all of a sudden it's not 2K.
01:02:33Maybe you can sell 6Ks.
01:02:35If we bundle it in a way that that makes it interesting.
01:02:38Like you, like maybe you put a float tank in your van and they like get the IVs while they're
01:02:41floating and you know, and then it's like, holy shit.
01:02:44Now this thing is like a double.
01:02:45Like no one else can compare against me because they want to feel better.
01:02:48So it's like, what other things do they need to feel better?
01:02:50And I can put that stuff in.
01:02:52Right.
01:02:52And then hopefully with socials we'll increase our brand and then increase pricing our way.
01:02:56But how does that sit?
01:02:58Amazing.
01:03:00I mean, I think that I was struggling with the offer everything for a while and leads.
01:03:04I think that changes how I look at it.
01:03:06Cause I was always trying to focus on one channel.
01:03:08It's opened my eyes.
01:03:09Yeah.
01:03:09Like SEO and PPC is a great, like PPC is where I start a lot of people.
01:03:13Cause it's the, it's the least work, right?
01:03:16Like you just keep messing with it until you get the sales motion right.
01:03:18And they're the hottest leads.
01:03:20So just be prepared that metal leads are going to be significant.
01:03:22I mean, if you did it before, like they're significantly colder than, than PPC leads are.
01:03:27So just as like a preparation.
01:03:29Okay.
01:03:31Do you think I should just increase?
01:03:35Cause I've been holding back on increasing Google's spend just because my cost per acquisition is so high.
01:03:42Do you think I should just increase spend then to get more compliments?
01:03:45I'm fine with the increasing spend.
01:03:46We just cause like, don't think about the business as a business today.
01:03:50The business as it currently exists is an experiment until you get it right.
01:03:52So don't like, I know that's hard to like say, or, you know, hard, maybe hard to hear it from me,
01:03:58but like right now we just have to nail the model.
01:04:01And the only reason for marketing is just so you have reps to practice.
01:04:06This offer the sales motion to get people into the membership.
01:04:10It's the only point of existence right now.
01:04:12Once that gets nailed, you can see all the fucking move.
01:04:14So the scaling here is just so we get more reps, not cause we're trying to make more money.
01:04:17That makes sense.
01:04:19All right.
01:04:20Just a reframe for you.
01:04:21So it's like, oh, we broke even this month.
01:04:22It's like, that's not the objective right now.
01:04:24We have to nail it and then we'll scale to the fucking move.
01:04:27That makes sense.
01:04:29Cool.
01:04:30How's, uh, how's Vantage been for you so far?
01:04:32It's a game changer, man.
01:04:34I mean, I've never been put in a room with like so many like-minded people.
01:04:37I've just been tapped out by like Twitter and Reddit.
01:04:40It's your subreddit.
01:04:43And there's like five guys in there.
01:04:44Well, good to know.
01:04:47Well, I appreciate you, man.
01:04:48Thanks for saying so.
01:04:49And that's the playbook.
01:04:50All right.
01:04:50Thank you so much, man.
01:04:52Appreciate you.
01:04:53All right.
01:04:58We drink soda.
01:05:01We eat pizza.
01:05:01This feels like modern Dave Ramsey showbook building quality business.
01:05:05Thank you, Trade in Black.
01:05:06Let's see here.
01:05:11When will the Straits of Hormozie reopen?
01:05:15When will the Straits of Hormozie be open?
01:05:18Uh, 19 year old become a real estate agent.
01:05:23How do you grow your business?
01:05:24Who we got next?
01:05:27Hey, Alex.
01:05:30What's up?
01:05:30What's up?
01:05:30Not much.
01:05:33Hey, first and foremost, I just want to say Vantage has been an absolute game changer.
01:05:37The AI is, to put it in Justin's words, disgusting.
01:05:42It's going to have so much clarity on our business.
01:05:44And just like the last guy said, like the community is just such high
01:05:48caliber people it's made such a big difference.
01:05:50So thank you.
01:05:51I appreciate it.
01:05:51Here in my situation.
01:05:54So I'm like the seventh guy to say this today, but I'm 24.
01:05:58My wife and I, we just learned about to pay for IVF treatments, which are really expensive.
01:06:02And my 23 year old business partner and his wife are pregnant as well.
01:06:07It's like a baby's in the air.
01:06:09Yes.
01:06:10Yes.
01:06:10We basically have a nine month time clock going to solve our biggest constraints.
01:06:15So we can obviously make enough money to support them and be present with our kids as we're having
01:06:20them.
01:06:21So for context, we sell them for you content marketing services to door to door and life
01:06:26insurance salesman who do content and ads for them.
01:06:29We make a million dollars per year and we want to be at the $10 million per year mark.
01:06:33But our churn average is at 17% per month.
01:06:37I think an issue of being too far down market.
01:06:40And so I'm wondering how do I create an offer in marketing that will attract
01:06:45market people and decrease our churn?
01:06:48Yeah.
01:06:49So, okay.
01:06:51So you're doing done for you for door to door right now.
01:06:53Are you helping them attract salespeople?
01:06:54Are you helping them attract like homeowners?
01:06:57Salespeople helping them grow their teams.
01:06:59Yeah.
01:06:59Yeah, I got it.
01:07:00Okay.
01:07:00All right.
01:07:02So when you're saying, so the, okay, so what are you just doing?
01:07:07Just doing lead gen and then, all right, let me reverse.
01:07:10Which avatars are working out?
01:07:15Really just the higher earner guys and that, that are getting recruits.
01:07:21What's really hard about the industry is like, we can get people to get recruits in their
01:07:25downline, but then when they're not like high enough level people to train them, then on
01:07:29the backend, they don't actually make any money.
01:07:31Okay.
01:07:31Yeah, no, that tracks.
01:07:33So what, so then if you were to say, what are the requirements in terms of revenue for somebody
01:07:39to like, or, or team size for someone to like, to be a high likely candidate of not churning?
01:07:45Yeah, our best, best clients make over 800K a year in, in personal positions.
01:07:51And plus how much they make on their downlines team size.
01:07:55It kind of varies by industry, how big your team needs to be.
01:07:57But yeah, like around the 30 person mark on their sales team is a good indicator.
01:08:03Okay.
01:08:03So to me, I hear, call it 750, 750K plus is qualified number one.
01:08:10Number two is you have to have a training system.
01:08:14And number three is you need to have at least call it 10 plus guys.
01:08:18So if every person that you signed up, had a training system, had over 10 guys in their
01:08:22downline and was doing 750 a year, would you say that that would be a good avatar to work off of?
01:08:25Yeah.
01:08:27Okay.
01:08:28So that's number one.
01:08:28Now what's the price point right now?
01:08:32It was, we have two packages.
01:08:36Our top package was $39.95 a month, lower package is $3,000 a month.
01:08:41That's weird.
01:08:42It's the same price.
01:08:44Um, what's that is the, by the way, the same price, um, from a buying, like a buying bucket
01:08:49perspective, the same, same.
01:08:51Um, so of these call it three and 4k a month, uh, customers.
01:08:57Do you have any idea what the churn is amongst these more qualified people?
01:09:03A lot lower.
01:09:06Uh, I can't say like, would you say it's five?
01:09:08Would you say it's 5%?
01:09:09Would you say it's 10%?
01:09:10Would you say it's half?
01:09:13I can say that these people will stay for like over a year.
01:09:16Oh, dude.
01:09:17Stay for like three months.
01:09:18Yeah.
01:09:18Game over.
01:09:19Okay.
01:09:19This is great.
01:09:19So what's cap right now?
01:09:20Uh, including the sales commission, it's like 2100.
01:09:25Dude, hold on.
01:09:26So is the only reason you haven't scaled this up?
01:09:29Um, well, okay.
01:09:30Let me ask the other question.
01:09:31What percentage of customers are the ICP or this good person versus the bad person?
01:09:35Oh, so low.
01:09:36We have like six, uh, six out of the 40 that we manage that are the ICP.
01:09:41Okay.
01:09:42Got it.
01:09:43So I think what you're going to do is this I'm going to give you a short term and long
01:09:46term.
01:09:47Okay.
01:09:47Cause we've got to make money in a day, but like, so what I want you to do is I want you
01:09:51to have, um, basically 5k, um, as your price to the, uh, to the minnows who are coming
01:10:00in.
01:10:00Okay.
01:10:01Five or six.
01:10:02I I'm kind of agnostic there, uh, for minnows and just say that it's billed quarterly.
01:10:07So that's actually a price drop for you, but I think if it's built quarterly, it'll give
01:10:12them more runway to actually like get going and whatnot.
01:10:14And it'll have a little bit bigger commitment for you and you can still generate some cash.
01:10:17This is short term, longterm.
01:10:19What we need to do is we need to change all the messaging to the avatar, to the correct
01:10:25avatar.
01:10:26And so if you only talk to the correct avatar, like whenever you talk to a slice of the audience,
01:10:31everything underneath always applies and it basically cuts off around what you're talking.
01:10:35So if you're, if I say, you know, million dollar plus business owners, um, like obviously we
01:10:40qualify for, you know, a million plus, um, minus the people we've been farther from the
01:10:44launch.
01:10:45Um, but there's, we get tons of people who are below that who apply.
01:10:50Right.
01:10:51And so we just have to qualify the people that we sell.
01:10:53And so if the messaging doesn't say this, then you're not going to attract them.
01:10:57Yeah.
01:10:58Right.
01:10:59Okay.
01:11:00Now how much does, cause you might be a little mispriced because I kind of like, I kind of
01:11:07like like 5k a month and 5k a quarter.
01:11:11So 5k a quarter for the memos.
01:11:13The two tiers.
01:11:14Yeah.
01:11:14Cause they're too close.
01:11:153k and 4k is the same number.
01:11:16Yeah.
01:11:18So I want to take the lower one, make it lower.
01:11:20I want to be closer to like $1,500 a month is what I'm thinking.
01:11:24And then for the higher tier, it's like those guys, the 5k a month is nothing for them.
01:11:28Right.
01:11:29Yeah.
01:11:32But they think it's a lot oftentimes.
01:11:34Yeah.
01:11:34But I mean, no, like every, they're salespeople.
01:11:37Like, I mean, everyone's going to negotiate.
01:11:38Like every vendor I have is charging me too much.
01:11:41Like, like whatever we care about is their behavior.
01:11:45Are they canceling?
01:11:47No.
01:11:47So it's not too much.
01:11:48Right.
01:11:49Yeah.
01:11:49And are they buying?
01:11:50Yes.
01:11:51When you get them on the phone, right?
01:11:52Yes.
01:11:53Right.
01:11:53So I, I mean, I think, and this is, you're going to, you're going to, you know, shit your
01:11:57pants when I say this.
01:11:58I think you're probably going to be in a world where you might be at the five to 10,000 a
01:12:03month in the not too distant future.
01:12:04Because remember if 750k is the minimum, right?
01:12:07People above that, you know, 60k, 80k, it's not going to make a huge deal because if they're
01:12:12going to get all the salespeople that need to triple their income, like what are we talking
01:12:16about?
01:12:16You know what I'm saying?
01:12:18Yeah.
01:12:18So two questions with that.
01:12:20The first one being, so how we get our leads right now.
01:12:26I do a little bit of paid ads, but mostly like organic content.
01:12:29And I feel like the amount of people that are in the ICP from a content perspective is so
01:12:36small.
01:12:37Like, I don't know what total TAM is, but I don't feel like it's enough to, if I'm making
01:12:41organic content and actually perform well enough.
01:12:43Dude, welcome to my world.
01:12:45Do you know what percentage of businesses are, one, there's 9% of people in a business.
01:12:49Of the people that own a business, percentage of people that are over a million is like 5%
01:12:53of that 9%.
01:12:53That's just a million.
01:12:55Forget 10, right?
01:12:58Just a million.
01:12:59So I'm already like half a percent of all people.
01:13:02So like, there's nothing wrong with saying I'm skimming from the top and I'm surfing it.
01:13:06Because here's the thing that if I could show you a map visually, did you watch the YouTube
01:13:12video I made that was like the 51.1.1 rule?
01:13:13Did you see that one?
01:13:15I haven't seen that one, no.
01:13:16Watch it, okay?
01:13:17So that video, basically I put this map up where I put 100 circles to represent 100% of
01:13:23people, right?
01:13:25And if you draw a line in the middle, if you look at all wealth, 50 of those dots have
01:13:30$2.
01:13:30And then the next like 40% have like $25.
01:13:37And then the next 9% have like $36.
01:13:41And then the top 1% has like $32.
01:13:44And so if you look at that map, the fact that you can only serve this tiny amount is not
01:13:51a tiny amount of the money.
01:13:55So you think putting out content as the main source of getting the leads like in terms
01:14:00of content and ads?
01:14:02Content and ads.
01:14:03All the messaging through the funnel and the offer needs to apply to this avatar.
01:14:08Because you're going to spin your wheels forever at 78% shirt.
01:14:10You're not going to grow.
01:14:10Yep.
01:14:12Right?
01:14:12Yep.
01:14:13That's how it's been the last year and a half.
01:14:15Right.
01:14:15So you're going to still get minnows and that's fine.
01:14:18We're going to put them into a lower price at a less frequent billing cadence to hopefully
01:14:21give them a little bit more on-ramp time without them having to make another purchasing decision
01:14:24to hopefully get kind of up-skilled enough to make it work.
01:14:27Inside of that minnow thing, I would probably include a training on how to build a training.
01:14:30Or just build a fucking training and then give it to them and then have them execute it.
01:14:34Some of them are going to do it.
01:14:34Some are not.
01:14:35This is short-term cash flow.
01:14:37But the long-term play, and I need you to do this in terms of your data tracking, separate
01:14:41out your ICPs from non-ICPs and then track that turn separately.
01:14:45Okay.
01:14:47That's the turn I care about.
01:14:48If we can get that turn to sub 3% a month, we're fucking killing it.
01:14:52All right?
01:14:52Okay.
01:14:52That's the game.
01:14:54My second question is in terms of what that lowers, so for $1,500 a month, we have our
01:15:01like costs to deliver for delivering everything.
01:15:04Do less.
01:15:04Do less.
01:15:05Just do less.
01:15:06Yeah.
01:15:07Less pieces of content per month or less.
01:15:09I mean, realistically, you need to use AI more and automate a huge portion of that.
01:15:13Yeah.
01:15:13That's been real.
01:15:14Recently learned that.
01:15:15Yeah.
01:15:16Yeah.
01:15:16Okay.
01:15:17Like we have a YouTube channel that we just started that with one guy and we're putting
01:15:22out 20 videos a day.
01:15:24That's creepy.
01:15:25That's creepy.
01:15:26Right.
01:15:26So like you have to lean into this.
01:15:29And if your team's not like the biggest thing out of all this is your cost basis and your
01:15:34pricing is based on your old delivery model.
01:15:36We need to change the delivery model so that you can have significantly higher gross margins.
01:15:39That's like big flashing Vegas signs.
01:15:43Beyond that is change the avatar to 750.
01:15:46They have to have training and at least 10 sales guys.
01:15:48We can split the pricing for minnows and whales.
01:15:50Minnows get 5k per quarter.
01:15:52Whales get 5k per month.
01:15:54Messaging has to now match this new avatar.
01:15:56We need a segment churn, number four segment churn between the ideal customers and the
01:16:02minnows so that we can actually track.
01:16:03Once you hit, I'll just call it 5% a month.
01:16:06Churn with the correct avatar.
01:16:08Scale it.
01:16:08Nice.
01:16:10That's amazing.
01:16:10Thank you so much.
01:16:11Yes.
01:16:12Super cool.
01:16:13Appreciate you.
01:16:13All right.
01:16:16Wasn't this fun?
01:16:18All right.
01:16:19Let's do the chat, the chat, what do we have here?
01:16:24Okay.
01:16:25Should I answer these ones you pull up?
01:16:29Okay.
01:16:30How do you stop?
01:16:31Okay.
01:16:32How do you stop constantly pivoting before execution when each new idea seems more rational
01:16:37than the last?
01:16:39I'm stuck in analysis and can't commit to anything.
01:16:41Okay.
01:16:42So the reason each new idea feels more compelling than the last is that you're actually running
01:16:47on this lovely loop here, which is one of my favorites, which is basically the doom cycle.
01:16:54So you start here and then you get really excited.
01:16:58This is called uninformed optimism.
01:17:00This is where you see the new idea and you're like, holy shit, this looks awesome.
01:17:06Then you find out more about that idea and then you get into informed pessimism.
01:17:12Oh no, this isn't as easy as I thought.
01:17:15I'm not going to become a millionaire overnight.
01:17:17And so then what you do is you go into the valley of despair, which is the sad face.
01:17:21And then at this point, what you do is you find another shiny object.
01:17:24And so you just keep doing the cycle over and over again.
01:17:26The only way to get out of it is basically make it through the valley of despair so that
01:17:30you then get to informed optimism rather than uninformed optimism, which then leads you to
01:17:37achievement.
01:17:38All right.
01:17:38And so you're basically going through the same cycle over and over again of something that
01:17:43I'm doing sucks because I just found out about it.
01:17:44I found this new thing.
01:17:45I don't know much about it, but it sounds exciting.
01:17:47I found out more.
01:17:48It's not as exciting as I thought.
01:17:49Let me look for something else.
01:17:51I'll tell you a story that my CFO, Suzanne Shifflet, told me a long time ago.
01:17:55She said, Alex, in all my years, all I can tell you is everything's got shit.
01:18:00She's like, I've been in this business, this business, this business.
01:18:04All businesses have problems.
01:18:05All, all businesses have shit.
01:18:07And the reason that the grass is so green on the other side is because it's fertilized with
01:18:11manure.
01:18:11All right.
01:18:12And so every single business that feels like it's easy is only a signal that you don't know
01:18:17enough yet.
01:18:18That is a promise that I can make to you.
01:18:19And I can say that last year, maybe it was 2024, was the first year in my whole career
01:18:24where I actually was like, I don't think I have this whole Shawnee object thing as much
01:18:29as I used to.
01:18:30And I would say that for the first 13 years of my career, it was like a huge problem for
01:18:34me.
01:18:34And the story that like when it became real for me was a friend of mine made like 50 million
01:18:40in crypto in a quarter.
01:18:42And I was like, holy shit.
01:18:45And not once in my mind was I like, I should get into this.
01:18:49I was like, I have no idea how that works.
01:18:50I'm glad he spends all his time doing it.
01:18:52I've got my own thing going on.
01:18:53Because there's so much debt that you have to pay down to get good at anything that once
01:18:58you start really going down the path, it's like the thing that we have to think about
01:19:03is let's say this is year one, this is year two, this is year three with whatever business
01:19:10opportunity you're on, right?
01:19:11You want to at year three, say, I want to jump to this new opportunity because it looks more
01:19:16exciting.
01:19:17And it looks more exciting because you think the growth rate is more compelling.
01:19:19But what that really looks like is like, okay, maybe this is year one of the new thing.
01:19:24But the thing is year one of new thing is still year four of the old thing.
01:19:29But then you're like, okay, maybe my growth will be faster.
01:19:33So maybe I'll be at year three at year two on my new thing.
01:19:38Yeah, but then I have to compare it to year five of my old thing.
01:19:42And this is how compounding works over the long haul is that, like, I talk about Mr. Panda
01:19:47a lot, who's my neighbor or was my neighbor, but who owns Panda Express.
01:19:52If you were to talk to him 45 years ago and say, hey, what are you doing?
01:19:56He's like, oh, I'm a China man.
01:19:57And I'm going to make a Chinese chicken shack.
01:19:59I wouldn't say chicken shack.
01:20:00Most people would say, hey, that's not a very good opportunity vehicle.
01:20:04Why are you going to do that?
01:20:05Well, you know, 45 years later, he's a deck of billionaire.
01:20:08So how do you do that?
01:20:09He just kept selling chicken and made the absolute best in the world.
01:20:12Raising canes has seven ingredients on the menu, right?
01:20:16They keep it so simple on purpose because they've tried
01:20:19to eliminate all complexity in the business, which allowed them to scale.
01:20:22And so you can only get that depth of knowledge with the comp,
01:20:24with basically surface area of exposure to the opportunity.
01:20:28And so you have to see the ridges.
01:20:30You have to get into the texture.
01:20:31And so you have to get past the point where you feel like it no longer makes sense.
01:20:35Because that's the point where everyone stops.
01:20:38And so if you see people who are successful,
01:20:40I will give you a belief that I have that has served me well.
01:20:42Which is that if someone else can do it,
01:20:44they're made from the same flesh and blood than I am.
01:20:45I can use the same hands and the same feet and the same mouth
01:20:48to do the same things that they're doing.
01:20:49There's nothing that makes them any better than me.
01:20:51And I can do it.
01:20:52And so all I have to do is I have to model what they're doing.
01:20:54And if I model exactly what they do, I should be able to get what they're doing.
01:20:57But if I'm me, I'm like, well, if I do twice as much or three times as much,
01:21:00then I should be on a long enough time horizon, be able to beat them.
01:21:03And fundamentally, that has been my viewpoint of the world.
01:21:05And if you have the struggle, it's because you need to stick with it.
01:21:07All right.
01:21:11You said that AI implementation is a business that you'd recommend.
01:21:15Yes.
01:21:15Should I learn to code for it or just skip the basics and go all in on Claude?
01:21:19I see these as like happy to glads.
01:21:22A lot of like so in anthropic right now.
01:21:27And so this is a little bit hearsay.
01:21:28Per my understanding, none of them have hands on keyboard.
01:21:32So none of them are actually coding.
01:21:33Everyone has swarms of agents that are, they have 20, 30, 50 agents at a time
01:21:39that are doing their coding.
01:21:40And they're basically full time in project management code review.
01:21:43That's all they're doing.
01:21:44And that's why they're shipping so much stuff so fast.
01:21:46And so if you kind of can skip over that chunk of time right now.
01:21:51And the nice thing is that AI is the first product
01:21:55that has ever existed that will teach you how to use it.
01:21:57You just say, how do I use you?
01:22:00What do I do now?
01:22:02And so yes, I think that is AI implementation is a great business that I'd recommend.
01:22:06And I wouldn't even think about what's my vehicle.
01:22:10Start with the problem.
01:22:11What customer do you want to serve?
01:22:12What problem do you want to solve?
01:22:13Go solve that problem.
01:22:14Elon has this great story about this, which is like, if you're like, I want to learn to code.
01:22:19That's very hard.
01:22:20It's like saying, this is what a wrench does and explaining what a wrench does.
01:22:24It's much more useful to say, hey, let's open up the hood of this engine.
01:22:27And then they're like, well, how do I open the hood of the engine?
01:22:30You're like, you need a wrench.
01:22:31And now the utility of the tool has a purpose and a reinforcement that's attached to it.
01:22:36And so if you want to start with the business owner,
01:22:39start with the problem, and then try and solve the problem.
01:22:41And then you will learn tools in a contextually relevant way,
01:22:43which will actually make it useful.
01:22:44And you actually learn it.
01:22:45All right.
01:22:46Alex, what's the one leadership move Layla does better than anyone
01:22:52that you've quietly adopted yourself?
01:22:54Quietly, that sounds like a GPT question, that you've quietly adopted yourself.
01:23:07Uh, I give, I give more kudos now than I used to.
01:23:11I used to have a little bit more of the, like, if you didn't hear from me,
01:23:13everything's fine perspective.
01:23:15And what that basically is, is it means that I built, I trained my team to extinct good behavior.
01:23:23And so I have dramatically increased the amount of kudos that I give out
01:23:28to people on a regular basis.
01:23:29I'd say that's the biggest thing I've taken from Layla.
01:23:32And for those of you who do know, Layla, my dear wife,
01:23:38she is working on a book about this particular topic.
01:23:43So stay very tuned for that.
01:23:45It's going to be very good.
01:23:46I have read the initial draft and it's quite savage.
01:23:49Also in the chat, if you spam the chat, we'll just delete your shit.
01:23:54And I definitely want to answer your question.
01:23:55So the best way to get your question not answered is to spam.
01:23:59All right.
01:24:00What is the best way to target enterprise clients?
01:24:02We make 3D images for off plan developments, targeting developers,
01:24:07but there are not that many and they're usually huge clients.
01:24:10What's the best approach?
01:24:11Really, it's a really good question.
01:24:13So enterprise clients, it's like you typically want to go where the fish are.
01:24:17To be fair, that's what you want to do with everyone.
01:24:18It's just that the ponds are much smaller and more disparate.
01:24:22And so this is where I like trade shows, conferences and COI.
01:24:28So centers of influence.
01:24:30And so you may find that let's say those developers use specific law firms
01:24:36and I would do what I could to get into there and get them to refer me.
01:24:39So basically at that level, you're going to probably get in from,
01:24:44I would call it less scalable methods because there's so many gates
01:24:47between you and decision maker that you basically need internal champions
01:24:51or trusted champions to make the recommendation.
01:24:54The only alternative to that is basically becoming a thought leader,
01:24:57which is making constant building a long term brand,
01:24:59which obviously you should do long term.
01:25:00So the best way is build a big brand.
01:25:03The fastest way is aggressively increase the amount of outreach,
01:25:09trade shows and affiliates that work with those customers
01:25:15so that you can bolt on or bolt in your services to theirs.
01:25:17Architects would be a good one too.
01:25:20All right, Samal, I work in finance.
01:25:23I have a son with a baby number two on the way.
01:25:26Run a side business, hit the gym and prioritize family.
01:25:30Okay, I passed CFA level one and considering level two in August,
01:25:34but it's mostly ego.
01:25:35How should I decide if it's worth the trade off?
01:25:37I feel like you already answered the question.
01:25:39But if there's a clear ROI for CFA level two
01:25:43and there's like earning that you're going to unlock,
01:25:45that's just a straight ROI question of like how much time does it take to study?
01:25:48And do I unlock permanent income increases?
01:25:51That might make a lot of sense.
01:25:53It sounds like, I mean, I love short term investment for long term forever payoff.
01:25:58And that's what that sounds like this is, especially if it's your career path.
01:26:01But I just want to make sure that it's tied to some level of higher income.
01:26:04But I think it makes sense.
01:26:06And I think if you're like, hey, if you give me these six months,
01:26:09I'll be able to do all of this for the rest of our lives.
01:26:12That seems like a pretty fair trade.
01:26:13If you had a bill of business today with no audience, no capital and only 90 days,
01:26:18what would you do that almost nobody else would be willing to do?
01:26:21What I've already done.
01:26:23Work, man, work.
01:26:28No one's willing to work.
01:26:32It's interesting because maybe Julian can speak to this
01:26:36because he's here a lot with me at 4 a.m.
01:26:40But I think what the hardest thing to see that no one will ever be able to witness
01:26:44unless they literally work at acquisition.com is consistency.
01:26:48Because the only way to witness consistency is to also be consistent.
01:26:52Like you have to be there to see someone show up every day.
01:26:56If I showed you an hour and a half long workout, you might be like, that's it?
01:27:02And so the thing is, the one workout isn't impressive.
01:27:06It's just that you do it for 20 straight years.
01:27:08That's the impressive part.
01:27:09And so there's so much like where you will beat everyone is in longevity.
01:27:13Like it's one of the last remaining alphas that exists is the patience of consistency.
01:27:18It's being willing to do the same thing over and over again without immediate reward.
01:27:21And that is the thing that almost nobody else is willing to do,
01:27:24which is why all the fruits are on the other side of consistency
01:27:26because so few willing people are able to take it.
01:27:28But the thing is, is it is simple.
01:27:30It's just hard because there's so many every day that you have to do something.
01:27:34There's 100 reasons not to do it.
01:27:35And there's only one reason to do it.
01:27:37It's far in the future and you have to convince yourself that that reason is worth it.
01:27:40Okay.
01:27:43If you had zero money, no active, I swear to God, it's like on a deserted island.
01:27:48Like you can't speak.
01:27:50You've lost your tongue.
01:27:51You're blind and need to make money.
01:27:55What do you do?
01:27:56All right.
01:27:56My skill is meta-learning.
01:27:58I've got a profile.
01:27:59I don't even know what meta-learning is.
01:28:01Learning about learning.
01:28:02I'm 23 and I'm trying to make content, but it's hard.
01:28:06I have no team.
01:28:07I have no support, no nothing.
01:28:08Yeah, that's just what starting is.
01:28:10I'm going to make it happen somehow, but I left some advice.
01:28:12I'm going to say something.
01:28:16I'm trying to read between the lines here.
01:28:17So this might be like not what you expected, which is I think I'm smelling a little bit
01:28:29of victim here.
01:28:30A little bit of woe is me.
01:28:32A little bit of like, no this, no this, no this, nothing, no support, no team.
01:28:37And I would say congratulations.
01:28:42You get to start the same way everyone else did who made it.
01:28:44And for everyone who's like, ah, only rich people, we're all rich.
01:28:51If you look at the millionaire's list, the vast majority of them are self-made.
01:28:58The vast majority.
01:28:59It's like 80%, a lot are self-made.
01:29:02Still in America, the minority of people inherit.
01:29:05And even if you did inherit, you still need the skills to keep it.
01:29:09So I'll say this, man.
01:29:12First off, I have a lot of love for you.
01:29:16I know that this thought you're in.
01:29:17I quit my job at 22 and started my business at 23.
01:29:21So I know that kind of like where you're at from that perspective.
01:29:27But I just made a commitment to myself that I would either make it work or die.
01:29:33Basically, like as long as I have food to fuel me, I'll just keep going.
01:29:43And I think like if you can divorce yourself from all the make-believe standards
01:29:50that you are making up and then holding yourself to and then deeming yourself insufficient,
01:29:56you will have significantly more freedom of action.
01:29:59You'll be able to do whatever the fuck it takes
01:30:03to get whatever the fuck you want for however long it fucking takes.
01:30:07And I think that's all you really can ask of yourself.
01:30:11And then the rate of you getting there is going to be directly correlated to your rate of learning.
01:30:16Some people it takes longer to learn.
01:30:17Some people it takes less time to learn.
01:30:19But I can promise you you'll learn faster if you do more.
01:30:23So with that, friends, family, countrymen, lend me your ears.
01:30:28I hope you enjoyed today's sesh of Farmosi Hotline.
01:30:31It was my great honor serving you.
01:30:33Oh, this was enjoyable.
01:30:35Chat, you guys rock.
01:30:36Some of these messages are wild.
01:30:39And have an amazing Thursday.
01:30:42And I'll see you guys on the interwebs.
01:30:44Bye.