Alex Hormozi Answers Your Questions (Ask Me Anything)

Mhm. >> Live. We're live? All right. Rock and roll, baby. Happy uh [ __ ] what day is it? Thursday. Happy Thursday. I honestly had no idea what day it was. Happy Thursday, everyone. Um I think they say Thursday is the day of Thanos, uh who attempted to cut the universe in half. Which one of the things I love about Thanos is I love the heart behind his original goal, which is to save the universe. That was his misguided uh objective, and he thought that it was getting overpopulated. But, I always criticize his his strategy. It's like in one population cycle, it's like people would have more kids to overcompensate, and they'd be like we'd be so back. Uh so, it was like a 20-year solution. I just like I'm like, "Really? After like amassing all the stones, that's what you thought?" I don't know. I feel like he could have had a better plan. Anyways, just saying. Um and uh everybody, love you all. Hope you guys are having an amazing start. So, uh we're doing a little Hormozi Hotline today. So, uh I'm taking calls from uh Vantage, which is uh our community of million-dollar-plus business owners, uh where I answer questions. And so, uh that's not the only thing we do, but I'm doing I'm doing that now. So, who we got first? All right. Drum roll, please. Mindy, I also see you in the chat. What's up? Ramos, I also see you. What's going on? Mark. Hello. I don't hear anything. In the meantime, I'll answer Kligedee, "Why people don't do the stuff they said they should do?" Um because they have a reinforcing contingency that is short-term that is more reinforcing than doing the thing they think they should do. Long-term, you solve that by taking actions, and then once you take those actions, creating a label for that pattern of behavior that you would then call an identity. So, we basically create an identity that says, "I am organized." And so, you do some sort of organizational activity, and then you say, "I am organized." And as a result of being organized, I now behave in this way on a consistent basis because it is more reinforcing to be consistent with that identity, that label that I've given myself, which I've deemed as good, than it is to not do it. And so, then that is how those those cycles or those patterns get created. And so, almost all of these things always have to start with some sort of behavior. I would say that oftentimes when we're younger, we do something, then someone says, "You must be organized." We associate with something good, and then we repeat that behavior in the future. And so, I think when we're adults, we basically have to do that for ourselves. Otherwise, we stay stuck in basically short-term thinking and short-term behaviors, which ultimately yield short-term results, >> which is no bueno, which is Spanish for not good. Mark, we on? I don't hear anything. In the meantime, if you guys are in the chat, drop drop preguntas. Let's do it while we wait for Mark. Hey, Alex. Hey. Mark, what's going on, dude? We did it. When my When my wife was in labor, I worked from the hospital room on my laptop during the hours she slept. I promised her for years that all all of this would pay off, but right now we're cramped in a tiny house in LA with two kids under 18 months, and yes, the second one was not planned. I run a poker coaching business, and I was at your workshop 9 months ago. We were at 2 million a year then, and we've doubled to about a 4 million a year pace this year, but my goal is a million a month. Okay. What's stopping me is I can't figure out how to scale demand past what our warm audience generates. We've got nearly 200k YouTube subscribers, and we close over 40% of the people we pitch into our 5-day 5K program, but we only sell 30-something seats a month and we have capacity for triple that. And every cold audience funnel I've tried has come back break even or worse. I was hoping you could tell me exactly where I'm [ __ ] up so I can buy my family the house they deserve. Well, first off, thank you for that context. Um that's it sounds like you have a crazy story right now. Um right now your cold like cold traffic is the natural funnel that should be added on to your existing like basically warm is only going to get you whatever warm is going to get you. And you probably have a a warm sales motion rather than a cold sales motion. And so when cold traffic is going through a warm motion, it's not converting. And so we basically do need to change your sales motion from a warm motion to a cold motion. And so there's two downstream benefits of that. The warm when warm traffic goes through a cold motion, they will be more sold and more likely to take a higher price offer. And when cold traffic goes through a cold motion, they'll just be more likely to buy. And so basically we need to microwave your cold traffic to make it warm. And so that's the basically the the step in the process that's probably missing. So walk me through the cold traffic funnels that you had um leading up to this. And what is the actually let's start with the warm and then we'll do the cold. So what's the warm traffic funnel right now? Warm traffic funnel is just VSL into book a call. Okay. Yeah, so just a basic call funnel on warm traffic. And we also have a warm direct response that is printing as well. It just that one fatigues really quickly so we have to keep spend down. So it's just bottom of funnel. That's the issue. So basically it's functioning like that that direct response kind of like hey, come to the thing is taking the the bottom slice of the pyramid, the people who are like 6-in pots, and they're just putting them in. So in a lot of ways they're just retargeting. But you're looking at like how do I get more people in top of funnel into my world, correct? Correct, yes. So there's a there's a couple ways to do this. Um I'll just call it the short-term and long-term way and we could have a combination of both, which is probably what I recommend. So, the the call call it the blended way is to run a paid workshop. So, when I say paid workshop, I'm saying like call it a $49 to $99 offer, probably $99. Um and have it be a legit workshop. And then that workshop will allow you to take like it's much easier to get someone to buy a $99 thing than how much is the uh poker coaching? 5K. Okay, yeah. So, it's much easier to get those guys to spend $99 and deliver one thing uh that's you know super valuable. You prove the value, right? That that way they don't have to guess is this guy good or not. You can take the time to tell them who you are and then the vast majority of this can be the value and then you make them very a nice irresistible offer of taking the next step. And so basically you book your calls from that live thing rather than from like a short VSL. Cool. We tried a cold webinar and it's it's flopped a couple of times. >> Yeah, I'm guessing it was it free? Yes. Yeah, so I would I would make it paid and just expect that you'll um like expect to lose money on the you know the $99 purchases, but what will happen is I'm going to bet that the people who did like did no one show up or were the people showed up not qualified? We had about a 25% show rate, but >> That's fine. For free that's fine. Yeah, only 5% of those booked calls. The retention was incredible, but only 5% ended up booking calls. So, what's what's likely is that the vast majority of people who showed up to the call through the webinar were unqualified. Did you have any metrics on the customers like from the opt-in of like who who was qualified for the thing? It seems like even the ones that booked calls, it's just most of them could not afford anything. >> So, that's where that's where like having that little bit of friction will typically take the the unqualifies from like 90%, which is probably what it was uh to closer to like 40% uh on a paid a paid workshop. And once someone makes a tiny purchasing decision, likely they make the next purchasing decision significantly higher. Like buyers buy more. That track? Yes, 100%. >> So basically just run this to a sales page, stack the living [ __ ] out of the bonuses. Um so that it just be like the the $99 version should feel like absolutely absurd. And then make that call it like a 3-hour uh workshop and then just sell at the end. Cool. Okay. >> Does that make sense? It was just you're just you just had to tweak it. That's all it was. You were like um free sometimes can be harder and especially since you have an audience, it's like these people have some level of trust with you. And so it's like let's just get let's let's deliver more value prior to the ask. 100%. That makes sense. >> Yeah, I would also only opt-in form. Are you um getting qualification data? Right now we're only asking for name, email, number. What do you know what is what what behaviors or characteristics um does someone have to have um to be a good buyer for you? The average amount that they buy in for is our highest quality signal. Um Oh, okay. Cool. So then I would just add that as one of the fields. So you have name, phone number, email, average buy-in for the games you play. Cool. And do we DQ people who don't >> No. What it'll what it'll do is you're going to get that data um and you can get a little bit cute with uh Facebook and have different thank you pages for the people who buy and are qualified or don't buy and are not or buy and are not qualified and then you can train the pixel data on the more qualified audience. Mm, okay. Cool. Yeah, we're doing that for uh for our organic right now anyway. All right, cool. I'm just writing this down for myself. Okay, so number one, we switch from free webinar to paid webinar, which is not even a webinar, but we're going to change to a workshop. And then number two, that maybe 90-minute thing that you're doing before, expand to 3 hours. Deliver true value for 99 bucks. And then, um on the front end, we want to make sure that we add the character the highest signal, which is the buy-in, to the intake so that we can start optimizing all of our ads around it. And you can quickly see what your true conversion percentage is. Because I actually care very little about the webinar conversion percentage. I care a lot more about what the qualified conversion percentage is. Because maybe you had 5% that closed last time, or whatever it was. No, you had 5% qualified, whatever it was. But like, if if you closed 50% of the people who were qualified, it's a banger webinar, it's a traffic issue. And that will give you a much better uh read, uh cuz if you're going to do these week to week, which I'm sure you will, you will be way better at predicting what the revenue size of the, you know, workshop is going to be, based on how many qualified are there, not how many leads. Cool. Okay. Rock and roll. >> this tracks. Yeah, I appreciate this. Yeah, and juice the hell out of that $99 That's the third thing. Just give away a ton. Yeah. Make it Make it absurd. There's no reason someone should not do it. Okay, great. Thanks, Alex. I I appreciate it once again. Congrats on getting from two to four million. Thank you. Next time Next time we talk, hopefully it'll be over 10. Million a month, baby. All right, rock and roll, man. Thanks, Alex. >> Yeah. All right. Was that interesting for for everybody? Sometimes it's like six it's 6-in putts. It's super super tight. Yo, what's going on, Alex? Good see you again, Justin King here. What's up, stud? What's going on? Hey, your arms are looking a little bigger, by the way. Thanks, man. I'm actually dieting, that's I was I was a little a little chunkier, and I just cut 200 g a day out of my carbs, so I'm a little cranky. >> go. Well, well, best of luck on that. >> Thanks. So, okay, so my co-founder, Chris Bumstead, and I built Standard for men to attack comfort and low standards head-on. Through our transformational online coaching, we allow men whose bottleneck to their success is their body the opportunity to earn self-mastery and transform their bodies within our four-step success guaranteed system. We're at 150k MRR. We want to scale to 15 mil MRR in the next 3 years. We've produced thousands of transformations and worked with 100 plus pro athletes, but we are demand constrained. You want to get to 15 million a month? That's what it was. Okay. Yeah. So you get to 15 million a month. All right. Okay. So what's that? So it's a a 10x is 1.5, 100x is 15 million. Okay. So we need a 100x. So what how many sales per month are is it right now? What's the price point? Yeah, so right now main thing we push towards is a 15k PIF. All-inclusive Telemed with one-on-one coaching. Got it. >> The whole shebang. Obviously, we can scale the price, but this is just initially where we're at. >> Yeah, so you're selling 10 per month at that price. Is that correct? Yeah, just about. >> Okay. 10 per month at 15. Okay, what's the funnel right now? Meta ad into VSL page with an application sales kick utilized to financially qualify setter doing manual touch points into a one sale close. So ads, VSL, application, qualify, SDR. Oh no, they're So the the touch point. Tell me about that. Like is that a phone call or is that >> So so we actually first off shout out to your ACQAI. That thing is disgusting. >> Thanks, man. So completely re-redid everything and will be implementing the whole double dial, the the whole funnel system that that you talk about in all the sales processes. So these metrics are off of what we used to do. We will be implementing what you kind of consider like best practice. >> Okay. So what were the metrics that like what was CAC before this? Yeah, so okay, so daily ad spend 1,300. We were a 3,500 CAC, AOV about 12k. Okay. Uh upfront cash collected ROAS 5.4 and rev ROAS 7.8 over the last quarter, but but caveat, it was extremely inconsistent. 3 weeks of like just not there and then a single week of like randomly hitting good. Um the the last piece that I'll add is that was in utilizing payment processors such as [ __ ] Mhm. to where they take it it which I mean it's nice for scaling. It's nice to get cash, but I don't know if it's a long-term move. Mhm. Oh, you mean you just had a BNPL option? Buy now, pay later type thing? Financing? Yeah, yeah. Um okay, so a couple things. So, the the ads themselves who are who are in the ads? Uh Chris predominantly from a cultural standpoint and then myself mid funnel is what we're going for. I'm Like you're the VSL not going to be the salesy person. I'm Yeah, and then VSL is shared between the two of us to show the the correlation and co-ownership. Got it. Okay, so I'll say this, I think the spend might be too low, which is what basically insufficient volume feels like volatility. Mhm. Because like if you think about it like if you have $3,500 CAC and you're spending $1,300 a day, you're going to get one sale every 3 days. It feels very lumpy. And if for some reason you don't have a sale every 3 days and it just means you have nothing for six and then you have two in a day, right? It's still the same percentage, but it feels like nothing's happening. And so when you have higher price point stuff uh and CAC is higher, you need daily spend to be significantly higher, which is then going to create the second problem, which is you're going to not have enough creative uh to fill the funnel. Normally I would say we would want more top of funnel stuff, but given the size of Cbum's audience and brand, I don't think I think I don't think he needs more recognition. Um but you will need more creative. Mhm. So, how many pieces with I'm sorry, go ahead. Go ahead. How many How many pieces of creative, um, are are you are you like basically making, um, per day that you're launching? Last quarter, not as consistent as we'd like. Running into five new creatives for myself and five new creatives for Chris. Per day? Oh, per week? Per week. Yeah, so with your spend volume, like I would like to see like, I don't know. I mean, kind of like It a lot, man. Um, like to put this in context, >> We're talking 100x for Yeah, it's a lot more. Um, so put it in context, like we put out 250 new ads per day. Mhm. Um, now our spend's higher, right? But if we're at, you know, even 100 times spend at 100,000 a day, we'd still have signi- like you're you're putting out five per week. We're putting out 250 per day times seven. We're at you're at five. And so, the volume difference is is dramatic, right? And so, I would say like the first thing is, number one, uh, ads have to go from five per week to probably closer to like 100 as like kind of a baseline in terms of volume, number one. Um, number two, I think we need to increase spend. From your spending was it 1,300 a day? Yep. I would like to spend 5,000 a day. Now, you're at 150, uh, a month. So, I'd probably I probably wouldn't increase spend. At le- I want to get to at least CAC, right? That just so you know where I'm thinking with this. It's like, can we spend 3,600 a day? Um, because at 3,600 a day, that means we can get one customer a day with our existing, right? Yep. That's that's just from a from a from a uh a change. Um, number three, uh what's the conversion on the funnel? So, we've got um Yeah. Yeah, like walk me through like some of the stats here. Like where's the big drop-off? Yeah, so we're CTR uh 0.8% 350 per qualified >> CTR's 0.8? Mhm. That's low. Mhm. Especially with Chris's brand. Yep. What's the offer? Uh so so that's that again shout out to your your AI. We have that solidified now. Prior did not have it solidified. Okay. But but where we're at right now, it is a uh six it's so basically it's like get abs in a year and completely change your life with our system. Otherwise, like we'll coach you for an additional 3 months free. Okay. What's the new offer? That that's the new >> That's the new one. Okay, got it. Okay. And the old offer was what? Just coming in work with us. Okay, yeah. Yeah, so that's I was like six-pack in a year is actually pretty believable. I actually really like that. So, I was Well, so our norm is 2 and 1/2% every 4 weeks. So, it's like someone could be 45% body fat and get down to 10 in a year. And we have an incredible coaching system and an incredible accountability and like tracking data system. So, like we we can do a conditional guarantee very easily. Yeah. So, >> But yeah, that's that's the new system. Okay. And the the 15 kg includes everything all the telemed already built in? Correct. Okay, got it. So, number one, go from five ads a week to 100 ads a week and you can do a blend of statics and video there. And the way that I would get more video is again, like it's just you walk in with an iPhone, take the best winners, put it on a teleprompter app so you can just see all your hooks, and just just walk and talk, right? Click click click click click like in an hour you should be able to get 20 30 ads. All right, if you and Cbum do this, it's like they're 60. And then you can take the best performing those, take those, put those in static words with images of Cbum obviously cuz it takes him no time. Um so, that's how you can get to 100. And once you find winning hooks, you basically just keep reusing the hooks and just tweaking the meat a little bit and changing the background. That's one. Two, increase the spend ideally to CAC, which would be 3,600 or 3,500 right now uh per day. I know that feels a little bit gutsy, but you already have a proven model uh and that's with all the steps not optimized, right? We're going to optimize the steps. Um the front-end offer you're going to change, I like the six-pack in a year, especially with his brand, it feels very believable. And then on the um where are you optimizing the pixel from a from a advertising perspective? Uh so, so other than the media buyers just looking at like the outcome of did someone buy or not, they are feeding information back into it based on one, closes, if that's what you're asking. So, closes because you don't you're not going to have enough volume. I mean, it's good to have it, but it's not going to be enough of a signal to the pixel. Like, you want something that you can get like a thousand on. Um and so, I would look at probably the application step would be the step that I would try to optimize around. And on the application, have a different thank you page for unqualified versus qualified, which is probably be a huge percentage of the traffic anyways. Yep. And then just make sure the pixel is on the qualified only thank you page. Yeah. Okay. May May I May I ask this last question? If you were to try to do this in half the time, Uh-huh. what would be the single thing that you would focus on the most? Uh it's going to be volume and creative. I mean, volume and creative and spend are the are the two Basically, that's what's going to explode the front end. Yep. Like, you need to spend more to get more get more at-bats. Sure. And to spend more efficiently, we need a better offer and better creative, and that's what we just did. And then to make sure that we're actually getting served the right audience, the pixel on the correct qualified lead thank you page. Yeah. The rest of it seems fine. Like, at least for like what can you fix right now, do that first. Yeah. Okay. Perfect. Well, thank you, Alex. I appreciate you. You bet you. Appreciate you, man. Congrats. I'm glad the AI served well. Yeah, very appreciate it. All right. Talk to you, man. So, that was Justin King from from Standard. He's part of Vantage, which is community for million dollar plus business owners. It's if you're like, I see in the chat, how how are these calls being sourced? I think they they put a link in there. If you are interresante, you can opt in. We priced it as cheap as that audience was willing to. I just said, how cheap could I make this where you'd still believe me? And they said a thousand bucks a month. And I was like, great. So, fun fun stuff. We we You still have to verify your income, FYI. That's how we keep the quality high. All right. With that, let's slay the day, baby. Hey, Alex. Hello. Hello. So, my name is Matija. Just to give you some context, my fiance and I are planning a baby soon. And if I can't make my business work now, I definitely won't be able to with less time and less sleep. So, for two years I've basically worked 12 hour 12 hour days doing everything myself, telling my family I'm going to I'm building the future, but in truth I I've been pretty much stuck in place. So, I run a marketing agency for realtors and home improvement companies in Slovenia. Okay. So, Facebook ads, content, and appointment booking. Mhm. I have four clients at total of 3K MRR. Okay. >> Last year I made 30K, and my goal is So, in the last 12 months I made 30K, and my goal is 30,000 net profit per month. Yeah. So, let me ask you a couple questions here. Um Yeah. Can you do the exact same thing in the US as you do in Slovenia? Yeah, I guess I could, but the market there is at least for the realtors is probably a a different. At least as far as I know, so there would definitely be some changes I would have to make. I Yeah, I currently make um content and educational content for them, which I which is the only like fixed revenue source I have since they pay me a retainer on that. And so you have to make content. Yeah, I I make them content, which performs really well. But then I also do lead gen for them, so So you run ads. Yes, Facebook. What do you And you charge 3K Uh no, 3K a month is like all together for from all the clients. So yeah, making I'm making 15 to to 25% on revenue share and some on Yeah. So I want to give you the the best piece of advice that I can give you. So right now is all of your content in Slovenian right now? Uh yeah. Okay, so I I actually >> I don't make any content if that's what you mean. Okay. How do you attract customers right now? Uh cold calling. I've basically had the same clients for the past like 6 months. Uh >> Yeah. Because I like I mentally I can't do anymore. Yeah, yeah, yeah. So there's a couple things right now. So number one, the customers what you're charging versus what you're delivering is mismatched. You're not charging enough for the amount you're doing. That's thing one. Thing two is in order to get basically appropriately priced, you most likely want to go after a bigger market. Now normally I don't say like switch markets and things like that, but you're at the very beginning. And so it's like what's a 100X force multiplier on the skill set you have? You already speak English, right? So I'd rather you just like can we can we cuz like if you sell into the US market, like you can sell $1,500, $3,000 per client. It's just the dollar is stronger and especially for what you're doing, you're doing content and ads, which is crazy. Most people literally only pick one or the other. You're doing both. That's why you suggest I switch to the US. I think that's what we need to do long-term. Short-term, I'd like you to increase revenue. So, how do we do that? So, you're just doing cold calls, you're not making content for yourself, but you are making it for your customers, right? Yep. How much additional effort would it be for you like if you're making them content, how can you not make your own content? So, that was actually one of my additional questions. I wanted to ask if I should A thousand percent. Yes, not even a question. A hundred percent you should be doing that. So, what I would do is uh do it in Slovenia and then have it translate and then put the captions in English. That way there's no accent. If that's where you're more comfortable. >> Okay. And I would make the content about you making their content. So, basically think of it like this. If you were to teach someone how to do everything that you do in your business without them paying you, what would you teach them? That's what you make your content about. Okay, make it in Slovenian and then I just add captions in English. Not just get No, no. Get the Get Get AI voice translation for for for the content. Yeah, exactly. Um that way >> would be a an issue. Yeah, cuz I want it to be for now and later. So, it might not even be cuz it's Are you on Instagram? I'm guessing that's where you're making the content for them. Um mostly Facebook. Instagram is not doing that well. Okay. So, I mean, the thing is the additional effort to do on both platforms is almost nothing. You can probably charge them for that, too, as a side note. But, for you, you can take the same thing, go on TikTok, go on Facebook, go on Instagram, post it. Um make sure that you have the translations in place. I would um if you want it to be cuz like sometimes the algorithm can be weird, you can have a US page and a Slovenian page. Again, it's not a lot of additional extra work to just duplicate the effort. And so, what this does is number one, this builds your content strategy while building theirs. So, we can solve for both today in terms of lead gen and then tomorrow in terms of the fact that you're going to have US customers which you can charge US rates. And so, I honestly just want you to take whatever you're charging, add a zero to it, and that's your US price. Okay. Seriously. Now, in terms of tactical, well, that was tactical, but the next piece that I want you to do is are you familiar with ManyChat? Is that how you have them working leads or getting leads? Uh no, I I watched the the educational like content you put like 2 weeks ago. I watched that. So, I actually I'm just basically implementing it for the organic side. So, that's that would be just a additional source of leads besides the the ads. Um so, I'm I'm in the process of implementing that, yeah. Okay. And Okay. So, number one, you make content about helping them make content. And so, you try to replace yourself by teaching the public, the world, every single thing you do to build content. Hold nothing back. All right, I'm telling you. You want to hold nothing back cuz >> specific just for for the for these niches, I guess? For for real estate and home improvement. Yes. You want to show them everything. So, the automations, the AI that you use, everything that you do to run run the business better, I want you to show all of it cuz when people see how much work you're doing, they're going to be like, "This guy knows what he's doing and I don't want to do that work." And then they inquire. All right? Thing one. Thing two, turn on the ManyChat automation so that when you are posting, put a CTA in the first line and the video, and then new followers automatically get a DM where you can sort them and say, "Hey, are you here for free stuff?" Um or do you like to grow your, you know, real estate, whatever. Um and then you can start working those DMs as leads. Number three is that from the leads that come in from that US Instagram, uh change the prices to US by adding a zero and offering the same thing. That's what I would do. Okay. Um And come up with a sexy lead magnet. Do you have a lead magnet? For myself, no. Yeah. Yeah. Make one for yourself that's 100 days of content for uh real estate. 100 days of content in 100 minutes. Ooh. Ooh. That sounds great. I like that. 100 days of content in 100 minutes. That's your CTA. Yeah. I I basically have to completely rethink how to actually do content because it's probably very different from for the US market at least. I actually don't think so. It's They're solving They're solving the same issues. The algorithm is still humans. It's what humans find interesting. Okay. Cuz I'll tell you this Yeah, go ahead. Yeah. Right now, the best content that's working is actually about like Texas and like the the laws. Yeah. Uh so, what's actually allowed and how to do some particular part of let's say selling a house. >> Yeah. So, those things are different. Those will be different by country. I agree there. But, it's not like it's not hard to find out. If you have a concept that works, just make the US version of the concept. Okay. And yes, this is a major departure, but the benefit of what you're doing right now is that if you were super super super far along, it's much heavier to change. But, since you're earlier on in the in the course, you might as well shoot for the moon and get it right the first time. Yeah. But, this still allows you to build for today and tomorrow. You're still going to make your stuff video content. We're going to duplicate into the US. We're going to add the CTAs in terms of the 100 to 1 100 content in 100 minutes. 100 days of content in 100 minutes. We'll have our new followers that we get and the people who respond to lead magnet. And when you get a US person, add a zero. Okay. Uh so, with the current clients, I just keep them as cash flow. For now. Yeah. Yeah. I You got to You got to pay bills and and feed the fam. Okay. Um so, there's Okay. Uh, what about for So, this is more just specific for realtors. What about home improvement? So, uh, there I've actually been struggling to do content for them because this >> two different avatars. Which one do you rather serve? >> Yeah. Um, well, I've been serving realtors Yeah. >> more. So, then just focus on realtors. There's more than enough. Okay. >> two avatars. It's two different offerings, two different customers, two different businesses. And just go after the US market. Yep. Okay. So, >> change, but yeah. Last point, focus on realtors. Just pick. Okay. Cool? Cool. Appreciate you. >> Thank you so much. No, you bet, man. I know it's going to be it's it's a you're in a hard time, but that's a very clear plan. Okay. Yeah. >> Thank you so much. I've been watching you for a long time, so I appreciate you, man. Rock and roll, and I'm excited to hear how how things go in 6 months, right? All right. Alex. Oh, hello. Hello, hello. My name is Yash, man. How you doing? Yash, with a Y? Yeah. Yes, Y A S H. I say Yash. >> Not much, man. Love the hotline. Excited. So, um, here, I'll give some context. I started my business around 2 years ago. >> Mhm. I quit my job to go all in, and I even convinced my brother to quit his safe 9-5 job and join me. Okay. >> Thing is now that he and his wife want to start a family, but since we're working all day on our own little business, our little baby, he just doesn't have enough time, so I feel kind of bad and kind of responsible for that, so I want to figure this out and grow this thing so he can do that. Um, so I have an AI SaaS that helps real estate agents and photographers. We make We make 3.3 million a year, All right. and we'd like to get to 10 million a year. Okay. But, I think what's stopping me is my churn. Like, every week I get 150 subscribers, but I lose like 100 or so, so I think my business is going to stop growing and even decline in the off season. That's what I'm afraid about. All right. So, walk me through onboarding right now. Onboarding. Yeah, so the funnel right now is you can sign up with no credit card. Um onboarding is we just implemented this last week, but we have an onboarding checklist. Okay, great. Videos and steps on how to, you know, activate and stuff. Um and then we have product tours and stuff that lets you go through the platform, make your first video, edit some photos, Yeah. and get value as soon as possible. Okay. And so, you're getting 150 a week, so that's 20-ish a day, right? Roughly, yeah. Okay. And do you have any human that is involved in the onboarding? Right now, no. What's the price point? We sell our most basic package is 60 bucks a month, and we also sell it for like 360 for the year. So, we try to do annuals as much as possible to reduce churn. Got it. So, what we need to So, what are the activation signals that you have determined so far? Right now, the main product is photo to video, so the main thing is going to be creating your first video within your first 7 days. And then another one is editing photos, like AI virtual staging and stuff like that. Um We just pulled the data. Around 50% make their first video in the first week, but only 10% edit their first photo. Okay. So, we're trying to increase those activation rates. Okay, but does making your first video correlate to them sticking? Um I believe so, yeah. I'll double check, but Make sure you know that, all right? Yeah, yeah. Do you have the the metrics on um people who edit? You said it was 10%. Um that's a separate action. And so, we might discover I I'm going to bet there's three things here. Number one is who is the actual customer? So, like of of the people who are signing up for this, number one is who is buying, number two is what are they doing. So, we have make your first video, use the editing, and what like what source are they coming from, who are they. Okay, so that's kind of four different variables that are going to affect which one has the highest conversion rate and LTV. And so, I think the vast majority of what is missing right now is I think you should be doing more hands-on onboarding. Cuz the onboarding checklist they have right now is that all automated? Like what is it? It's like a workflow? Yeah, yeah. I mean, it's just a a UI dashboard thing. So, we have we're trying to do maybe some weekly trainings or something like that to help with onboarding, but Let me Let me try and like we need to we need to atomic bomb this and get out of the like this isn't scalable mindset for the short term, and then we'll make it scalable long term. So, I would like you to do I mean, real world, like, to start two onboardings a day, one in the morning, one at night, and when they sign up, you book them for the onboarding automatically. So, that you can talk to these customers and then manually walk them through. I guarantee your onboarding checklist is going to change as soon as you actually go over their shoulder and watch them do it, cuz you'll also see the friction in your process, right? Um, but you'll also have such you'll have way more buy-in, and you can usually handle the entire onboarding in 20 minutes, uh whereas they're trying to like, you know, suffer their way through it. Does that make sense? Yeah, yeah. So, just to clarify, would this be like um a group onboarding every day, like twice a day, or like >> Yeah. What Okay. So, a group Yeah, a group same onboarding. Your brother can do one, you can do the other, whatever. Um, that's number one. Number two is you need to segment the data by channel. Number one. Number two, by avatar, which I'm going to guess there's some discriminating criteria that you can figure out, which is probably like how many houses did you sell last year, or how many houses did you sell this year. That's going to be That'd probably be my biggest signal guess. Um, and then we we what are they from an action perspective, which is we have these two actions that we know so far, which is video and editing. And so our what we're going to try and find because we might find out that people from a specific channel suck and we might find out that one specific data avatar is the only avatar and they stay and the LTV of that customer might be a thousand. Right? Right. >> And so then what we'll do cuz we just need this data to basically there's only two things that we can do right now and then as soon as we have that data there's a a hundred other things we can do. But this is like the constraint right now. So >> Yeah. we're doing the Zoom onboarding so that you can short-term get more data and probably decrease churn just because of in-person onboarding's going to do better. Number two, when you're doing those in-person onboarding's you're going to be able to witness the process flows and I guarantee you'll be able to remove friction from that process to get it to happen faster and make sure they're doing both those steps. Number three is that once we have uh the inbound data, you'll be able to see which avatars are the highest converting and the channels and then all of that data then routes back into the front end, which is our messaging is to target this specific avatar on this specific channel and then when they come in, we we do the Zoom onboarding and make sure that every single person passes go and checks the boxes. Okay. Okay. That makes sense. I think one thing that I'm thinking about right now is the main reason a lot of people churn is because they only have like four houses a year, right? So they just don't need this every month. So I guess you're saying like the ads would map exactly to like, hey, not screw those guys, but let's go for like the teams or 200 houses a year or photographers or something. >> teams is a great idea. Um also, if you know that it let's say it's four houses a year minimum. Let's say that's the number. Um two options for you. Option one is you can just make everyone do annual and I would say here's why. Or if you know if let's say four houses a year is the minimum, which is one house a quarter, then you can just bill quarterly. So I'd say like you have quarterly billing and you have annual billing. Mhm. Does that make sense? Sure. Cuz it cuz we want the value cycle to be aligned with the billing cycle. Mhm. Yeah, I think after we added the annual option around 40 to 50% of people take that now, which is a huge bump, but >> Yeah, I mean it's it's buy six get six, right? Yeah, roughly. Yeah. Um, I'd be curious to see what happens if you remove the monthly and only have annual. Me, too. Me, too. It's scary. >> I mean it's an easy test, man. You can run in, you know, a week and find out. It's not like you're you're I mean that's actually the easiest test in the world cuz it's not like you're even changing your price. You're just removing an option. True. Okay. So, let me recap this. Number one, Zoom group onboarding. Number two, activation points on that onboarding, which is going to be video and editing. Get that done in 20 minutes and remove friction from the process. Three, get the data of channel and avatar to see which ones of these have the highest conversion. And And since you won't be able to wait to see churn cuz so many people are going to be annual, you have to just check are they checking both these boxes? And then uh number four, I would test the annual only. But once you see it, even if annual only is the winner, I like keeping monthly there because it keeps you honest. And then basically once you truly solve churn on monthly cuz it gives you a much faster feedback loop, then you you basically can push everyone to annual because then the economics are better. Does that make sense? Right, right. Okay. >> So, we keep the monthly because we need the signal. Yeah, for the short term. Yes, to fix the product. Yeah, and I wouldn't even try this like I wouldn't try and scale past where you're at right now until you fix this. And then scaling will simply occur cuz even if you don't change your front end, if you cut your churn by, you know, 2/3, the business will triple. That gets you to 10. Sure. Yeah, definitely. Rock and roll? Rock and roll, man. I'll try that out. And then just the one more thing on booking the onboarding call. Like, what does that flow actually look like? Is it like a button in the UI? Is it like an an email that says book your onboarding >> Oh, dude, it's an atomic bomb. I mean we're going to text, we're going to call, we're going to email. In the actual flow itself is your next step is book your onboarding call. We've got two a day, they're with a real person. Uh so we actually get you the most out of this thing. Okay, 100% I'm going to try that out. Appreciate you and good luck to your brother. Thanks so much, man. Have a good one. You bet. Okay, bye. Bye. So for those of you who are just joining us, this is Hormozi Hotline where I'm taking calls from Vantage, which is our million-dollar-plus business owner community. Um it's a thousand bucks a month. I don't like hiding that. The reason for that is because when I surveyed the group of million-dollar-plus business owners, I said, "What is the absolute cheapest price that I can price this at where you think you'd still think that it it could actually deliver?" By the way, if you're curious, the the price point that was maximum revenue when I did the survey was 5,000 a month, which I very strongly looked at because who doesn't want to revenue max? But the goal is to build the largest and best community of million-dollar-plus business owners. And so HQ AI, which I which Justin before this was talking about is one of the biggest things that we include. And if you don't know what HQ AI is, I have spent two and a half years doing consults every single week with business owners. Um deep dives into businesses, so like 20-page packets on on the businesses to figure out exactly what they need to do. These are for bigger businesses. Um and we've trained the AI on every single one of my private consultations, which is now like 500, plus the three or four thousand that my whole team has done as well. And we're trying to build the most advanced um small business AI out there with the stuff that's working today across industries. And that's why we have this whole advisory practice cuz that's my long-term play. And so more amazing businesses coming in is the how the flywheel spins. So you're a million-dollar business owner, that's what it is, and that's what these calls are. All right, let's do it. Next one. The link somewhere. You can probably find >> Alex. Good to be Good to be talking with you. What's up? Hey, my name's Alex. I'm out of Green- South Carolina. I I founded a turnkey construction safety company. And so, right right now, what I'm looking at is I'm working 60-70 hour weeks. Uh the phone's non-stop. And when I'm at the house, my mind's still trying to figure out work problems. So, I'm not always present with the people that I care about. And uh I've got a third baby on the way. And I'm missing some of those moments that that you don't get back, right? So, business-wise, we're we're making about 2.1 million. Uh I've got a goal of of getting to 5 million by the end of this year. And we've experienced some rapid growth. So, I'm starting to get I get I'm not starting to I've been getting pulled back into the type of tasks where I feel really competent and I was really good at as a safety guy. And instead of hiring the people that are better than me and and building those systems that really the business needs to scale. So, I guess my question is is how would you attack that problem if you were in my shoes? What's profit? Profit, we're at about 22% right now. Okay, so 400 uh 400 a year ish on net, but you're but you're but you're growing right now, correct? Correct. Okay, so call it pacing 600, something like that. Does that sound about right? That's right. All right. Sounds right. So, I'm just trying to see what we got to work with. Okay. How much does it cost to get the person that you need? So, I'm thinking we we've I just hired a director of operations and uh he's he's in his second month, so he's still learning our systems and our culture and all of that. Uh and then I'm looking at bringing in a a person underneath him to start helping uh we have a we we fields field safety professionals. So, we've got about 13 people across four states. And so, really that's that secondary person's going to handle managing that talent and that workforce because that's where a lot of the phone calls and the text messages and the emails come from. So, I think really if for another person that we need, they'd probably be a I'd say about a $150,000 guy or gal. Okay. Uh is your director going to watch this because I can um blur I'll I'll remove your name, too um if that helps. I He will not watch this. >> Okay. So, I'll tell you like let me ask one question before I say what I'm going to say. Um did you feel relief from that director coming in? Huge relief. Okay. Okay, fine. Then he he can live to fight another day. Um Okay. So, the director came in, you're going to hire some guy underneath him that's 150K. So, what's stopping you from doing that right now? So, I think what what I'm running into is we as we grow and and the the demand continues to to increase, I'm also trying to acquire the talent and and get the talent in while executing all of the tasks. So, Yeah. um I think that's where I'm I'm stuck. Got it. What's the what's your what's your hiring funnel right now? Um it's been referral, uh just proximity, people that we see on job sites and we've worked with and now we're starting to get on the LinkedIns and the Indeeds and things like that. Yeah. So, I mean referrals obviously always the best way to grow. Do you have um you have 13 guys in the field, do they know people? They do. Okay. What incentive do you have for your referrals right now? So, currently our referral program's all based around finding other safety professionals that we can ship out to job sites. So, we we pay a bonus program of essentially locate a guy and if we hire him, we'll pay him we'll pay 500 bucks if they stay for 90 days, uh then we'll pay them an extra $1,000 and that was built in your boardroom about 2 weeks ago. So, that's >> Okay. Well, we're going to do >> being issued. I I love I love the spirit. We need to tweak one important thing. How much do you make per $150,000 per year guy? Um that per We our our average person right now is about 70k and we make probably about 200,000 off of them. So I'm not sure with this guy. I don't have that number. So let's just let's just use those numbers, right? 70k, right? And well, how much do you think this guy will make you? It's more than that, correct? See it's Yeah, yes. Yes. Okay. He'll he'll make more than that, but I think he's going to he's going to take me out of we we that's we have one funnel for for staffing, which is what I've been talking about. We have other funnels which is consulting and things like that that pulls me out in the job space. Yeah, and I think that person probably revenue I'd say at least a quarter mill from this guy. And this guy's 150? Yes. Imagine. So that 250 is extra or in total on 150? I think it would be in total. Mhm. Where we stand right now. Yeah. I don't love that. I like the 70 to 200 better. Um Okay. >> those a lot. Yeah. So let me let me let me I'm going to I'm going to do a couple things. So number one is on the the the new referral program that you're about to roll out or just rolled out, I just think the economics need to be changed. So you have your 500 and then a thousand so that's $1,500 total. For me, if I know that somebody can make me $130,000 in gross profit, I'm willing to pay 10%, 20% of that, like no problem. And so I think that if you made this thing like 10 grand or 15 grand, I'll bet you your guys would be significantly more responsive at working their networks. Do you agree? 100%. So I think number one cuz if you're going to pay a recruiting firm that much, which you would easily pay 10 or 20% for a kind of repeatable role like this. You'd pay 10 grand for that role. So, I'd be I'd rather pay my guys that than pay an outside firm. Yep, and we've been doing that. So, that's a that's a really good point. >> Okay. So, I think we go from 500 to 10K at least to start uh on the referral bonus. Uh and it's fine cuz you're going to ROI it and you can still delay put put a thousand bucks up front, 9,000 on the on the on the 90-day success. And I think they'll be that'll that'll solve number one. Um Now, this other this more specialized role, are there any specialized recruiters who who do who hire for this this this particular person? There there are, but we haven't had success with them. Okay, are they contingency-based? Um some of them. Okay. So, this is what I do when I have a when I have a one-off role, I go recruiters. If I have a repeatable role, I build a whole system around it because it's like core to the business. So, like the guys on site, that is repeatable role. I'm going to need you know, like if you need 13, you're going to need 30. You know what I mean when we three or four x, right? So, that's where it's like we need to have dollars and dollars out. The referral programs are a great start. We need to ultimately get into the we run this many ads. Our cost of acquiring talent, just like you have CAC, we need CAT, C A T. And just like we have LTV, we have lifetime gross profit per employee, which is what what revenue gross profit do we make per per head? Uh and then that becomes the kind of supply side economics of that funnel. So, that has to get made and the same exact sales methods apply. So, it's like you'll run an ad, you'll have an opt-in page, you'll have a VSL, right? That'll sell them on why company's awesome. And then you'll push them ideally to a group call because it takes a lot of time to take those initials. And then you can select the people from that group call who you think are legit. So, that'll take That makes a lot of Right. It'll remove some of that time constraint that you're dealing with having all these interviews, right? Yep, that makes a lot of sense. That's the repeated role funnel. The recruiting funnel, I would like you to spin up like add a zero. So at like 10 recruiters all contingency based and then let them work. Got it. Okay. Yeah, no I mean I yeah so I do more. Do more is what you're saying. >> and it's just sometimes it's a belief issue on that. You know what I mean? Like when we scaled a sales team for one of our companies from zero to 80 in 90 days we had to hire 80 sales people, right? And so it's like we we you know we gassed all the ads we had we gassed all the funnels and we spun up 15 sales recruiters. And we paid five bucks ahead which we negotiated because we were doing volume. So they had a standard fee of 10. We said well if you I mean we're going to get 80 so you know do it for five and we'll take as many as we can and they were like let's go. And so we got 15 and so we got 80 guys hired and then kept 50 and then within 90 days we're doing 5 million a month in extra sales from that company. And so I think it's just a violence thing of like one or two didn't work of course not. It's like you know I did I worked one or two leads and I didn't find a customer. It's like I mean it's just it's a much bigger number scheme. Yeah I I reframe my mind around treating it like a lead and and trying to to chase hunt hunt new business, right? It's it's just hunting down that new talent. So that that's that's a good reframe. It's a bow tie. So you have demand gen funnels and supply gen funnels. It's the same thing but you need both in order to scale if you're a service business. Everyone misses the backside. Makes a lot of sense. I I really appreciate you brother. Thank you. Appreciate you. Congratulations on the business. Thank you. All right. Congrats again. You can't have a bad day with a name like that. Alex the Great. All right. This is fun, right? Is this cool? I'm liking this. This is great. You got good questions. Meaty. Beefy. All right. Hopefully for those at home got some got some stuff out of that. 19 year old becoming >> How are you? >> Hello sir. So my name is Jonathan. Huge fan. So, a little bit about the situation. I have a 10-month-old new baby. Uh we just got a house. So, I have a I have a mortgage. Um I can't quit my job as a 9-5 emergency room nurse because my business doesn't get enough leads. So, getting this issue solved or being put in the right direction would literally turn around the fate of my family right now. So, we're going to pay for daycare soon, 1,500 a month. Babies aren't really cheap when they're born, but you know, scale's up. It's like ads. Um and then my mortgage is equivalent to my salary every month, which is 6 so, we run a mobile IV drips company. We make 360K per year. We like to be at 3 million a year, but what's stopping us is that we don't have enough leads. We can't figure out our Google Ads and how to target our best customers. And CAC for Google Ads is 278 right now. And what's the what's customer value? Um average LTV right now is 454. Mhm. Blended CAC is 83. Okay. What is your word of mouth? SEO. Uh-huh. But to get more scale, we wanted to get ads. And then I wanted to try Meta Ads. We got a few leads from there, but I took your advice on hammering one channel first up to like 100K in spend and then going to re-continue. Okay. I don't think you have a CAC issue. I mean, it could be lower like realistically, you could probably at a local level get it down to maybe 150, but like I don't think that's where the I don't think that's where the the unlock is. I think you have an LTV problem. So, what's the offer what's the offer? So, that's my thing. I read the Offers book front and back. I can't be commoditized myself from everyone else. We have a $50 off. Everyone has a $50 off. Risk-free if we're not within an hour or within an hour and a half, they're going to go to the next person anyway. Uh-huh. We don't really have like we're there like as fast as we can be. Sometimes it's within an hour, but if we can't, it's someone else. We can't really like I can't think of a way to risk speedy this offer against my competition. I'm actually thinking less about the front end thing and more about the back end thing. So, like yeah, go ahead. We do have a package that we upsell, right? So, let's say you come in for some type of drip, we're able to sell you either a three drip or six drip package, right? And then that's either 1,000 or 1,500 or up to 2,000. That I would I would be fine with a 278 CAC if we're able to target the right avatar cuz some avatars would like that. They're fine with that. I would if I was able to target the right avatars, I could sell them on a six drip package, get full cash up front, spend more on ads, get more people, but not everyone is is agreeable to the package. Uh-huh. What percentage of people are taking the upsell today? 10% maybe. Yeah. What's the offer when you're actually talking to them? Um have you ever considered instead of rescue, right, instead of getting a drip when you're hung over or sick, how about we get you a drip a six drip package, then you can get it every time you need it, you prevent getting sick, get a six drip, you get a free add-on, VIP like priority booking, which everyone already expects, and then you get uh I think it's 20% off total price. Okay. So, two things. Number one, the hook to get them to ask you more about the upsell is uh so, did you want to have today for free? Mhm. And then they'll be like, "Wait, what do you mean?" You're like, "Oh, I assume that's what you came in on." And then they'll be like they'll look a little confused, and you'll say, "Oh, what most people do is uh we have a if you basically sign up for our recurring thing, uh we take today and we just make we just credit it towards it. So, it's effectively free. Uh and so, what most people find is obviously there's hangovers, but the you might not know this, but 90% of drip usage is more around uh feeling better rather than getting to feel normal again. Mhm. And so, you want to stay ahead of it, right? So, just like you go to the chiropractor to get your back cracked once a week, or you go to the whatever you go to the gym, there's you have your internal gym is how I think about it. And this is basically kind of at the micro micro level microbiome level of fighting, you know, working out all the little cells, um and that's what you need to do, right? And so, if you feel Imagine like you felt shitty and now you feel good. When you do these when you feel good, you'll feel amazing. Like I've got people who stopped drinking caffeine because they're on these things. I say that, yeah. That's me. I stopped drinking caffeine. >> Right, there you go. But the But the thing is is that we have to get out of pathology cuz that's the emergency business and get it You basically you have to get out of the thrive and into the survive Sorry, get out of the survive business and into the thrive business. Mhm. So, the people who are calling you are calling you because they're in emergency, and that's fine. We just need to flip emergency into ongoing. So, I will say this about the one channel thing. SEO and uh PPC, not a lot of work once you kind of get them working, which you have right now. Like they're like you just kind of just spend the ad sense, right? Like it is what it is. Um We need to work on the back end sales process what I just went over, but I think that I would actually kind of quote break my rule and say I think you need to run meta ads because you need to sell people who are in thrive mode who want to feel better, not who should feel shitty to feel normal. There's a first step. Those are the people who are going to buy this for the long haul. So, basically, you have inbound high intent base, but their intent is for us a an emergency solution. We need people who are interruption based who didn't wake up this morning thinking, "Oh, I'm going to go buy some uh IV drips." You need people who wake up and think, "Man, I feel like [ __ ] in general, and I need to do something." And then those are the people that get interrupted with an ad, and then those are the ones that you can sell. Is there any way for me to increase like I want a banger offer? I'm just taking 30% off. It kind of reduces the margin a little bit on the It pulls cash up front, but it does reduce the margin. You know, six strips 30% off. Yeah, well, what's the price of a drip? And also, if you're selling via So, here's the other side of it. When you sell with inbound, like intent base, which is what we're talking about, you're getting price shopped. If you sell with interruption base, they didn't wake up looking at six different IV shops. Right. So, you can easily have a 30% premium that you add add one extra widget in there, and now you're good to go. So, better offer for them, and then I can increase the price for meta ads. >> Mhm. Just just just just tweak the offer a little bit. Just add one little thing that's different, so you have So, ethically, you can have two different prices. Right. And then, so I've noticed cuz like I've I've sold to some people pretty well other better than others. Some people will just go ahead and buy six-pack right away when I mention them. But, others is there any way I I would I don't even like selling the packs. I'd rather sell memberships. But, the thing is member like for me, like I know monthly recurring revenue is great, but for me, the cash up front makes a difference cuz I can go ahead and increase spends on my ads, no? >> No, I I hear you. You can still sell a membership and then have them prepay the membership. I get that. So, instead of buying six-packs, you six months. Yeah. That makes sense. >> And then it goes month to month afterwards. Yeah. I like that. Is there any way for you think for me to target my ideal customer with like fractal pricing to to target one group instead of the other? Well, you're local, right? Yeah. >> So, the way that you're going to target is with the messaging more than the targeting. Uh so, play around with the So, I would So, are you taking a testimonial video from every customer? We do UGC. When we when we were running meta ads, we do UGC testimonial. Yeah, so every single customer makes an ad for you, right? That's number one. Number two is the messaging itself in the ad needs to appeal to the thrive not survive customer. Right? Number three is that the front-end offer, we need to make uh basically they're going to come in for whatever, but the pitch to flip them into the membership is like want to make today free, that's what most people do. Just like that. Want to have today free, that's what most people do. And they're like, "How?" And now they're leaning in, right? Um and then number four, we're going to transition from packs to membership so that we can get the recurring revenue and we can still front-load the cash by having them pre-pay for the first quarter. So, start at six months. I mean, you can start at 12, step down to six, step down to three. Right, downselling downselling downselling. Yeah. >> But fundamentally, the only way to like you're in a you're an emergency business, right? And so, you have to make it's an LTV problem. Like that's the issue here. It's an LTV issue. And so, all of this stuff is more so one, get better customers on the front end. Two, have an offer that's paired with that customer on the back end. Now, once that starts happening, we may find that you've got way more pricing power on the back and all of a sudden it's not 2K, maybe you can sell 6Ks um if we bundle it in a way that that makes it interesting. Like you like maybe you put a float tank in your van and they like get the IVs while they're floating and you know, and then it's like, "Holy [ __ ] now this thing is like a double like no one else can compare against me." Cuz they want to feel better. So, it's like what other things do they need to feel better and I can put that stuff in. Right. And then hopefully with socials we'll increase our brand and then increase pricing that way. But how's that sit? Amazing. Amazing. That I think that I was struggling with the offer everything for a while in leads. I think that changes how I look at matter cuz I was always trying to focus on one channel. It's opened my eyes. Yeah, like SEO and PPC is a great like PPC is where I start a lot of people cuz it's the it's the least work, right? Like you just keep messing with it until you get the sales motion right. And they're the hottest leads. So just be prepared that metal leads are going to be I mean if you did it before like they're significantly colder than than PVC leads are. So just as like a preparation. Mhm. Mhm. >> Okay. How's Yeah, go ahead. >> Do you think I should just increase cuz I've been holding back on increasing Google spend just because my my cost per acquisition is so high. Do you think I should just increase spend then? To get more leads? I'm fine with the increasing spend. We just cuz like don't think about the business as a business today. The business as it currently exists is an experiment until you get it right. Mhm. So don't like I know that's hard to like say or you know hard maybe hard to hear from me but like right now we just have to nail the model. And the only reason for marketing is just so you have reps to practice this offer, the sales motion to get people into the membership. It's the only point of existence right now. Once that gets nailed you can scale the [ __ ] boat. So the scaling here is just so we get more reps not cuz we're trying to make more money. That makes sense. I like that. >> All right. Just a reframe for you. So it's like oh we broke even this month. It's like that's not the objective right now. We have to nail it and then we'll scale to the [ __ ] moon. That makes sense. Cool. How's How's Vantage been for you so far? It's a game changer man. I mean I've never been put in a room with like so many like-minded people. I've just been tapped up by like Twitter and Reddit. It's your subreddit and there's like five guys in there. Well good to know. Well I appreciate your bet. Thanks for saying so and that's the playbook. All right? Thank you so much man. You bet. Appreciate you. All right. We drink soda, we eat pizza. This feels like modern day Ramsey show but we're building quality business. Thank you Trading Black. Let's see here. When will the straight set of Hermosi Hermosi reopen? When will the straight set of Hermosi be open? Uh 19 year old becoming a real estate agent. How do you grow your business? Who we got next? Hey Alex, what's up? >> What's up? Not much. Hey, first and foremost, I just want to say Vantage has been an absolute game changer. The AI The AI is uh to put it in Justin's words, disgusting. It's given us so much clarity on our business and just like the last guy said, like the community is just such high caliber people. It's made such a big difference. So, thank you. I appreciate it. >> Um Here's my situation. So, I'm like the seventh guy I got to say to say, but I'm 24. My wife and I, we just learned we have to pay for IVF treatments. They're really expensive. >> Sorry. Um and my 23 year old business partner and his wife are pregnant as well. It's like a baby's in the air. >> Yes. Yes. We basically have a 9-month time clock going to solve our biggest constraint so we can obviously make enough money to support them and be present with our kids as we're having them. Um so, for context, we sell done-for-you content market marketing services to door-to-door and life insurance salesmen. We do content and ads for them. We make a million dollars per year and we want to be at the $10 million per year mark, but our churn averages at 17% per month. Um I think it's an issue of being too far down market. Um and so, I'm I'm wondering how do I create an offer and marketing that will attract upmarket people and decrease our churn. Yeah. So, um okay. So, you're doing done-for-door done-for-you for door-to-door right now. Are you helping them attract sales people or helping them attract uh like home homeowners? Sales people. Helping them grow their teams, yeah. Yeah. Yeah. Got it. Okay. Um All right. So, when you're saying so, the Okay. So, what's Are you just doing just doing lead gen and then all right, let me reverse. Which avatars are working out? Really just the higher earner guys and that that are getting recruits. What's really hard about the industry is like we can get people to get recruits in their downline, but then when they're not like high enough level people to train them, then on the back end they don't actually make any money Okay. Yeah. No, that tracks. So, what So, then if you were to say, what are the requirements in terms of revenue uh for somebody to like or or team size for someone to like to to be a high likely candidate of not churning? Yeah, our best best clients make over 800k a year in in personal commissions and plus how much they make on the their downlines. Team size, it kind of varies by industry how big your team needs to be. Um but yeah, like around the 30 person mark on their sales team is is a good indicator. Okay. So, to me I hear call it 750 750k plus is qualify number one. Number two is you have to have a training system. And number three is you need to have at least call it 10 plus guys. So, if every person that you signed up had a training system, had over 10 guys in their downline, and was doing 750 a year, would you say that that would be a good avatar to work off of? Yeah. Okay. So, that's number one. Now, um what's the price point right now? Uh it was We have two packages. Our top package was 39.95 a month. Uh lower package is 3,000 a month. That's weird. It's the same price. Um what's That is the by the way the same price. Um from a buying like a buying bucket perspective, it's same same. Um so, of these call it three and four K a month uh customers, do you have any idea what the churn is amongst these more qualified people? A lot lower. I can't say like >> say it's 5%? Would you say it's 5%? Would you say it's 10%? Would you say it's half? I can say that these people stay for like over a year. Other people would stay for like 3 months. >> Yeah, game over. Okay, this is great. So, what's CAC right now? Including the sales commission, it's like 2,100. Dude, hold on. So, is the only reason you haven't scaled this up? Well, okay, let me ask you the other question. What percentage of customers are the ICP or this good person versus the bad person? >> Oh, so low. We have like six. Six out of the 40 that we manage that are the ICP. Okay, got it. So, I think what you're going to need to do is this I'm going to give you a short-term and long-term, okay? Cuz we got to make money today, but like So, what I want you to do is I want you to have um basically 5K um as your price to the to the minnows who are coming in. Okay. Five or six. I'm I'm kind of agnostic there. For minnows. And just say that it's billed quarterly. So, that's actually a price drop for you, but I think if it's billed quarterly, it'll give them more runway to actually like get going and whatnot and it'll have a little bit bigger commitment for you and you can still generate some cash. This is short-term. Long-term, what we need to do is we need to change all the messaging to the avatar. So, the correct avatar. And so, if you only talk to the correct avatar like whenever you talk to a slice of the audience, everything underneath always applies and it basically cuts out around what you're talking. So, if you're if I say, you know, million-dollar-plus business owners, like obviously we qualify everyone for, you know, a million plus minus the people we grandfathered from the launch. But there's we get tons of people who are below that who apply, right? And so, we just have to qualify the people that we sell. And so, if the messaging doesn't say this, then you're not going to attract them. Yeah. Right? >> Okay. Now, how much does cuz you might be a little mispriced because I kind of like I kind of like like 5K a month and 5K a quarter. So, 5K a quarter for the memos. >> tiers. Yeah, cuz they're they're too close. 3K and 4K is the same number. Yeah. So, I want to take the lower one, make it lower. I want to do closer like $1,500 a month is what I'm thinking. And then for the higher tier, it's like those guys, the 5K a month is nothing for them. Right? Yeah, but they think it's a lot often times, but >> Yeah, but I mean No, but like every They're sales people. Like I mean, everyone's going to negotiate. Like every vendor I have is charging me too much. Like like whatever. What we care about is their behavior. Are they canceling? No. So, it's not too much. Right? Yeah. And are they buying? Yes, when you get them on the phone, right? Yeah. Right. So, I I mean, I think and this is you're going to you're going to you know, [ __ ] your pants when I say this. I think you're probably going to be in a world um where you might be at the 5 to 10,000 a month in the not-too-distant future. Cuz remember, if 750K is the minimum, right? People above that, you know, 60K, 80K, it's not going to make a huge deal cuz if they're going to get all the sales people they need to triple their income, like what are we talking about? You know what I'm saying? Yeah. Right? >> So, two questions with that. The first one being so, how we get our leads right now, I do a little bit of paid ads, but mostly like organic content. And I just feel like the the amount of people that are in the ICP from a content perspective is so small. Like I don't know what the total TAM is, but it's not I don't feel like it's enough to if I'm making organic content, it'll actually perform well enough >> Dude, welcome to my world. Do you know what percentage of businesses are One, there's 9% of people who own a business. Of the people that own a business, percentage of people that are over a million is like 5% of that 9%. That's just a million. Forget 10. Right? Just a million. So, I'm already like half a percent of all people. So, like there's nothing wrong with saying I'm skimming from the top and I'm serving it. Because what Here's the thing that that that that if I could show you a map visually, did you watch the um the YouTube video I made that was like the 5111 rule? Did you see that one? Haven't seen that one, no. Watch it, okay? So, that video basically I put this map out where I put 100 circles represent 100% of people, right? And if you draw a line in the middle, if you look at all wealth 50 of those dots have $2. And then the next like 40% have like $25. And then the next 9% have like $36. And then the top 1% has like $32. It's if you look at that map, the fact that you can only serve this tiny amount is not a tiny amount of the money. Mhm. So, you So, you think putting out content as the main source of getting the leads like it in terms of Content and ads. Content and ads. All the messaging through the funnel and the offer needs to apply to this avatar. Cuz you're going to spin your wheels forever at 70% churn. You're not going to grow. Yep. Right? >> Yep. That's how it's been the last year and a half. So, you're going to still get middos and that's fine. We're going to put them into a lower price at a less frequent billing cadence to hopefully give them a little bit more on-ramp time without them having to make another purchasing decision to hopefully get kind of upskilled enough to make it work. Inside of that middos thing, I would probably include a training on how to build a training or just build a [ __ ] training and then give it to them and then have them execute it. Some of them are going to do it, some of them are not. This is short-term cash flow, but the long-term play and I need you to do this in terms of your data tracking, separate out your ICPs from non-ICPs and then track that churn and Okay. That's the churn I care about. If we can get that churn to sub 3% a month, we're [ __ ] killing it. All right? Okay. That's the game. >> Amazing. My second question is in terms of what that lower so for 1,500 a month we have our our like cost to deliver for delivering everything. >> Do less. Just do less less pieces of content per month or less >> I mean realistically you need to use AI more and automate a huge portion of that. Yeah, yeah, yeah. That's real. Real. Or not. Yeah. Yeah. Okay. Like we have a we have a YouTube channel that we just started that with one guy and we're putting out 20 videos a day. That's crazy. Yeah, that's crazy. Right. So like it's you you have to lean into this and if your team's not like the biggest thing out of all this is you like your your cost basis and your pricing is based on your old delivery model. We need to change the delivery model so that you can have significantly higher gross margins. That's like big flashing Vegas signs. Beyond that is change the avatar to 750. They have to have training and at least 10 sales guys. We can split the pricing for minnows and whales. Minnows get 5K per quarter. Whales get 5K per month. Messaging has to now match this new avatar. We need to segment churn. Number four, segment churn between the ideal customers and the minnows so that we can actually track. Once you hit I'll just call it 5% a month churn with the correct avatar, scale it. Nice. That's amazing. Thank you so much. Yes, super cool. Appreciate you. All right. Wasn't this fun? All right, let's do the chat. The chat. What do we have here? Okay. Uh Should I answer these ones you pull up? Okay. How do you stop Okay, how do you stop constantly pivoting before execution when each new idea seems more rational than the last? I'm stuck in analysis and can't commit to anything. Okay, so the reason each new idea feels more compelling than the last is that you're actually running on this lovely loop here, um, which is one of my favorites, which is basically the the doom cycle. So, you start here and then you get really excited. This is called uninformed optimism. This is where you see the new idea and you're like, "Holy [ __ ] this looks awesome." Then you find out more about that idea and then you get into informed pessimism. "Oh, no, this isn't as easy as I thought. I'm not going to become a millionaire overnight." And so then what you do is you go into the valley of despair, which is the sad face, and then at this point what you do is you find another shiny object. And so you just keep doing the cycle over and over again. The only way to get out of it is basically make it through the valley of despair so that you then get to informed optimism rather than uninformed optimism, which then leads you to achievement. All right? And so you're basically going through the same cycle over and over again of uh, something that I'm doing sucks because I just found out about it. I found this new thing. I don't know much about it, but it sounds exciting. I found out more. It's not as exciting as I thought. Let me look for something else. I'll tell you a story that my CFO, Suzanne Schiffler, told me a long time ago. She said, "Alex, in all my years, all I can tell you is everything's got shit." She's like, "I've been in this business, this business, this bu- All businesses have problems. All All businesses have [ __ ] and the reason that the grass is so green on the other side is cuz it's fertilized with manure." All right? And so every single business that feels like it's easy is only a signal that you don't know enough yet. That is a promise that I can make to you. And I can say that last year, um, maybe it was 2024, was the first year in my whole career where I actually was like, "I don't think I have this whole shiny object thing as much as I used to." And I would say that for the first 13 years of my career it was like a huge problem for me. And uh, the story that like when it became real for me was a friend of mine uh made like 50 million in crypto in a quarter. And um I was like, "Holy shit." And not once in my mind was I like, "I should get into this." I was like, "I have no idea how that works. I'm glad he spends all his time doing it. I've got my own thing going on." Because there's so much depth that you have to pay down to get good at anything that once you start really going down the path, it's like the thing that we have to think about is let's say this is year one, this is year two, this is year three with whatever business opportunity you're on, right? You want to at year three say, "I want to jump to this new opportunity because it looks more exciting." And it looks more exciting because you think the growth rate is more compelling. But what that really looks like is like, "Okay, maybe this is year one of the new thing." But the thing is is year one of new thing is still year four of the old thing. But then you're like, "Okay, but maybe my growth will be faster. So maybe I'll be at year three at year two on my new thing." Yeah, but then I have to compare it to year five of my old thing. And this is how compounding works over the long haul. Is that like I talk about Mr. Panda a lot, who's my neighbor or was my neighbor. Um but he owns Panda Express. If you were to talk to him 45 years ago and say, "Hey, what are you doing?" He's like, "Oh, I'm a China man and I'm going to make a Chinese chicken store chicken shack." I want to say chicken shack. Um most people would say, "Hey, that's not a very good opportunity vehicle. Why are you going to do that?" Well, you know, 45 years later he's a deca-billionaire. So how did how did he do that? He just kept selling chicken and made it the absolute best in the world. Uh Raising Cane's has seven ingredients on the menu, right? They keep it so simple on purpose because they've tried to to eliminate all complexity in the business which allowed them to scale. And so you can only get that depth of knowledge with the comp with basically surface area of exposure to the opportunity. And so you have to see the ridges. You have to get into the texture. And so you have to get past the point where you feel like it no longer makes sense because that's the point where everyone stops. And so if you see people who are successful, I'll give you a belief that I have that has served me well, which is that if someone else can do it, they're made from the same flesh and blood than I am, I can use the same hands and the same feet and the same mouth to do the same things that they're doing. There's nothing that makes them any better than me, and I can do it. And so all I have to do is I have to model what they're doing, and if I model exactly what they do, I should be able to get what they're doing. But if I'm me, I'm like, "Well, if I do twice as much or three times as much, then I should be on a long enough time horizon be able to beat them." And fundamentally, that has been my viewpoint of the world, and if you have this struggle, it's because you need to stick with it. All right. Uh you said that AI implementation is a business that you'd recommend. Yes, should I learn to code for it or just skip the basics and go all in on Claude? I see these as like um happy to glads. Uh a lot of like so in Anthropic right now, and so this is a little bit of hearsay. Um per my understanding, none of them have hands-on keyboard. So none of them are actually coding. Everyone has swarms of agents that are they have 20, 30, 50 agents at a time that are doing their coding, and they're basically full-time in project management code review. That's all they're doing, and that's why they're shipping so much stuff so fast. And so um if you you kind of can skip over that that chunk of time right now. Um and the nice thing is that AI is the first product that has ever existed that will teach you how to use it. You just say, "How do I use you? What do I do now?" Um and so yes, I think that is AI implementation is a great business that I'd recommend. Um and I wouldn't even think about what's my vehicle. Start with the problem. What customer do you want to serve? What problem do you want to solve? Go solve that problem. Elon has this great story about this, which is like if you're like, "I want to learn to code," that's very hard. It's like saying, uh "This is what a wrench does," and then explaining what a wrench does. It's It's more useful to say, "Hey, let's open up the hood of this engine." And then they're like, "Well, how do I open the hood of the engine?" You're like, "You need a wrench." And now the utility of the tool has a purpose and a reinforce that's attached to it. And so, if you want to start with the business owner, start with a problem, and then try and solve the problem, and then you will learn tools in a contextually relevant way, which will actually make it useful and you actually learn it. All right. Uh Alex, what's the one leadership move Leila does better than anyone that you've quietly adopted yourself? Quietly. Uh that I've quietly That sounds like a GPT question. Um that you've quietly adopted yourself. Uh I give I give more kudos now than I used to. I used to have a little bit more of the like, "If you didn't hear from me, everything's fine." perspective. Um and what that basically is is it means that I build I I train my team to extinct good behavior. Uh and so, I have dramatically increased the amount of kudos that I give out to people on a regular basis. I'd say that's the biggest thing I've taken from Leila. And for those of you who do know, uh Leila, my dear wife, uh she uh is working on a book about this particular topic. So, stay very tuned for that. It's going to be very good. I have read the initial draft and it's quite savage. Uh also, in the chat, if you uh if you spam the chat, uh we'll just delete your [ __ ] and definitely won't answer your question. So, the best way to uh get your question not answered is to spam. All right. Uh what is the best way to target enterprise clients? We make 3D images for off-plan developments targeting developers, but there are not that many and they're usually huge clients. What's the best approach? Really, it's a really good question. Um so, enterprise clients, it's like you typically want to go where the fish are. To be fair, that's what you want to do with everyone. It's just that they're the ponds are much smaller and more disparate. And so, this is where I like trade shows, uh conferences, and COI, so centers of influence. And so, you may find that let's say these developers uh use specific law firms. And I would do what I could to get into there and get them to refer me. So, basically at that at that level, you're going to probably get in from I'll call it less scalable methods because there's so many gates between you and a decision-maker. Uh that you basically need internal champions or trusted champions to make the recommendation. The only alternative to that is basically becoming a thought leader, which is making constant building a long-term brand, which obviously you should do long-term. Uh so, the best way is build a big brand. The fastest way is aggressively increase the amount of outreach, trade shows, um and affiliates that work with those customers so that you can bolt on or bolt in your services to theirs. Architects would be a good one, too. All right. Samual, I work in finance. I have a son with a baby number two on the way, run a side business, hit the gym, and prioritize family. Okay. I passed CFA level one and considering level two in August, but it's mostly ego. How should I decide if it's worth the trade-off? I feel like you already answered the question. But if there's a clear ROI for CFA level two and there's like earning that you're going to unlock, that's just a straight ROI question of like how much time does it take to study and do I unlock permanent income increases? That might make a lot of sense. Um it sounds like I mean, I love short-term investment for long-term forever payoff. And that's what that sounds like this is, especially if it's your career path. Um but I just want to make sure that it's tied to some level of higher income. But I I think it makes sense and I think if you're like, "Hey, if you give me these 6 months, uh I'll be able to do all of this for the rest of our lives." That seems like a pretty fair trade. Uh if you had a business if you had to build a business today with no audience, no capital, and only 90 days, what would you do that almost nobody else would be willing to do? What I've already done. Um work, man. Work. No one like No one's willing to work. It's interesting cuz um maybe Julian can speak to this cuz he he's here a lot with me at 4:00 a.m. Um but I think what the hardest thing to see that that no one will ever be able to witness unless they literally work at acquisition.com is consistency. Because the only way to witness consistency is to also be consistent. Like you have to be there to see someone show up every day. Right? Like if I showed you an hour and a half long workout, you might be like, "That's it?" And so like the thing is is like the one workout isn't impressive. It's just that you do it for 20 straight years. That's the impressive part. And so there's so much like where you will beat everyone is in longevity. Like it's where it's one of the last remaining office that exists is the patience of consistency. Is being willing to do the same thing over and over again without immediate reward, and that is the thing that almost nobody else is willing to do, which is why all the fruits are on the other side of consistency because so few willing people are able to take it. But the thing is is it is simple. It's just hard because there's so many every day that you have to do something, there's a hundred reasons not to do it. And there's only one reason to do it, it's far in the future, and you have to convince yourself that that reason is worth it. Okay, if you had zero money, no active I swear to god this is like on a desert deserted island, uh you like you can't speak, you've lost your tongue, you're blind, uh and need to make money. What do you do? All right, my skill is meta learning. I've got a profile, I don't even know what meta learning is. Uh learning about learning. Uh I'm 23 and I'm trying to make content, but it's hard. Uh I have no team, I have no support, no nothing. Yeah, that's just what starting is. Uh I'm going to make it happen somehow, but I'd love some advice. Um, I'm going to I'm going to say something I'm trying to read between the lines here. So, this is this is this might be like um not what you expected. Which is I think I'm I'm I'm smelling smelling a little bit of victim here. A little bit of woe is me. A little bit of like all know this, no this, no this, nothing, no support, no team. And I would say congratulations. You get to start the same way everyone else did. Who made it. And for everyone who's like, "Ah, only you know, rich people uh or we're all rich." Um, self-made if you look at the millionaires list, the vast majority of them are self-made. The vast majority. It's like 80%. A lot are self-made. Um, still in America the minority of people inherit. And so, and even if you did inherit, you still need the skills to keep it. So, I'll say this, man. Um, first off, I have a lot of love for you. I know that this this spot you're in. I I quit my job at 22 and started uh my business at 23. So, I know that the kind of like where you're at from that perspective. Um, but I just made a commitment to myself that I would either make it work or die. Basically, like as long as I have food to fuel me, I'll just keep going. And I think like if you can divorce yourself from all the make-believe standards that you are making up and then holding yourself to and then deeming yourself insufficient, you will be you'll have significantly more freedom of action. You'll be able to do whatever the [ __ ] it takes to get whatever the [ __ ] you want for however long it [ __ ] takes. And I think that's all you really can ask of yourself. And then, the rate of you getting there is going to be directly correlated to your rate of learning. Some people it takes longer to learn, some people it takes less time to learn, but I can promise you you'll learn faster if you do more. So, with that, friends, family, countrymen, lend me your ears. Um I hope you enjoyed today's sesh of Hermosi Hotline. Um it was my great honor serving you. Hope this was enjoyable. Um chat, you guys rock. Some of these some of these some of these messages are wild. Um and uh have an amazing Thursday, and I'll see you guys on the interwebs. Bye.