Helping Strangers Build A $1,000,000+ Business [LIVE]
Chapters8
Discussion of how to get more responses from cold DMs, improve hooks, and structure offers to drive initial leads.
Alex Hormozi critiques real-time business growth questions, maps concrete paths to faster cash flow, and stresses building scalable AI-driven systems over pure hustle.
Summary
Alex Hormozi hosts a candid, live Q&A session that covers everything from lead-gen tactics to pricing strategy and automation. He presses callers to focus on fast revenue with freemium-to-paid transitions, profitable onboarding, and high-velocity outreach. The discussion touches on concrete moves like onboarding calls, strategic partnerships, and the value of getting customers on the phone to validate offers. Hormozi also digs into how to scale service-based businesses with AI workflows, not just human labor, and he emphasizes “scale zero” — getting time spent on operations down to zero before rapid expansion. Throughout, he demonstrates how to turn existing demand into cash quickly, using offers like second-place giveaways and high-value incentives to drive conversions. The chat also dives into content strategy for boring niches (like tax), advocating storytelling, stakes, and proven hooks to boost engagement. Finally, he invites viewers to join Vantage, his million-dollar-plus community, and teases practical frameworks for acquisition, retention, and automation.
Key Takeaways
- Aggressively convert free users to paid by tightening the freemium model and prioritizing ascension over acquisition costs.
- Get on the phone with high-potential leads (and even low-budget users) to validate offers, iterate quickly, and unlock paid opportunities sooner.
- For service businesses, focus on LTV to CAC and experiment with brand acquisition, partnerships, and open-call outbound to accelerate growth.
- Scale through AI-driven workflows: document every operation as a repeatable process and automate it to achieve Scale Zero.
- Use storytelling and high-stakes demonstrations (like tax savings or weight-loss wins) to make niche topics compelling in content marketing.
- Structure offers as first and second prizes (or discounts) to reduce perceived risk and increase conversion during giveaways.
- Build a content system that leverages customer-created content and hooks to flood the market with valuable, compliant, and scalable ads.
Who Is This For?
Entrepreneurs and business builders who want fast, repeatable growth in service-based or productized businesses, and who are exploring AI automation and high-ticket client acquisition. Essential viewing for those evaluating freemium-to-paid models, outbound strategy, and scalable operations.
Notable Quotes
"“We want to channel demand, not create demand.”"
—Emphasizes directing existing customer interest rather than forcing new demand.
"“Scale zero is getting your time down to zero so you can scale the moon.”"
—Defines a core operating principle for rapid growth.
"“The faster you can get on the phone with these customers, the faster you’ll learn what they actually want.”"
—Underlines the importance of direct conversations in product/offer validation.
"“Giveaways with a second place prize, discount the main offer, and sell the same value at different price points.”"
—Shows a concrete gambit to boost conversions during launches.
"“AI workflows will run the business while you scale; the world has changed.”"
—Advocates building automation to support high-growth trajectories.
Questions This Video Answers
- How can I turn a freemium product into a high-margin paid service quickly?
- What is Scale Zero and how do I achieve it in a service business?
- What are effective strategies for outbound lead generation in 2024?
- How do you structure ‘first place’ and ‘second place’ prizes to maximize conversions?
- What content hooks work best for boring industries like tax or weight loss?
Alex HormoziLive coachingFreemium to paidLead generationAI automationScale ZeroLTV to CACBrand partnershipsOutbound strategyContent marketing hooks
Full Transcript
Let's get ready to rumble. What's up everybody? Happy Wednesday. Recording in progress. Happy Wednesday. Um, I don't own a sign company. Big cyan vivo. Um, I'm technically in tech development services, so I guess you could say that. Uh, how do you get more responses from cold DMs, better offers, uh, and better hooks? Sometimes I am angry that things don't work. Then I want to blame Alex, but I can't find other way than blaming myself. Redirect that blame, baby. Uh, I wanted to start an AI automation service. Claude said that. Uh, make it a lead loss loss leader.
I don't know what that said. Um, for lead loss. I don't know what that means. Classifying engagement in book a meeting automation for HVAC business America. Should I do it? Sure. There's lots of businesses you could have. Uh, juggernaut user question. I run an auto dealing auto detailing business. How do I scale and find the right detailing technician? Uh, I mean, you can just go recruit from other technicians places. Uh, or a fun one, you can train people to do it yourself. Uh, and this is not a slight I don't think it's going to take a huge amount of time to teach people how to do auto detailing.
So, you could probably train someone how to do like an okay job in like a weekend. So, I think that is wildly underestimated in terms of value is maybe just train people better. All right. Then, uh, you want to start life coaching? Well, as long as your life is put together, that's a good start. What you don't want is have a life that's in shambles. That's a life coach, right? It's kind of like a a dentist with bad teeth. But if everybody's like, "Man, you've got your life together." Then life coaching could probably make a lot of sense.
What is my net worth? Excellent question. This much. Real talk. Are you Are you getting Are you getting the full stretch on camera? Are we Are we getting both sides? Cuz I want to make sure they can see it. Yeah. It's this much. Okay, cool. Hopefully that puts that to rest. Um, you think I should do lead genen agencies? Uh, legion for electrician. I'm electrician myself. Um, I mean, they would trust you, but at the end of the day, like, are you good at getting leads? And do you have a scalable way of doing it?
If so, then yeah, that makes a lot of sense. Um, construction service businesses, low overhead, 3 months in, need leads. How do I get the hottest leads with the least time spent? Uh, I think you need to flip your perspective and just say, um, how do I just get leads? Forget about optimizing right now. You need to be violent. Um, the idea there is I think we want to look at whenever a customer is in a journey, there's different points that they make decisions. I like looking at the decision points that are immediately preceding or two steps preceding doing business with me.
And so I want to in the like the shortest way to get the fastest amount of customers is to go to somebody who already has those customers and make a deal with them that allows them to make more money by referring business to you. Simply stated, that is the fastest way to grow a business. That there's a reason that people will try and partner with people who already have existing audiences because they have built-in distribution day one and the likelihood that they can sell customers with the influence that they have is high. Also, if you recopy paste the same message over and over again, I will literally never respond to your question.
With that, do we have our first caller? Jamie, pull them up right now. All right, let's rock. Let's slay the day. I'm a high ticket closer selling for Legion Agency helping daycarees. What business should I start? Hey, Alex, can you hear me? I can't hear you. What's up, dude? Hey. Yeah, so this is Sebastian. I sell rental relocation services to people who want to move to the Netherlands or want to move within the Netherlands itself. Okay, we make zero dollars at this point. Uh what is stopping me is that I am getting free users uh for a free tool I built to kind of host all the listings.
So the software that's it. Yeah, but barely any conversions to the paid offer. Um so if I can't get paying customers, I'll basically have to get back to having a job in about a year, but I got some save to to work on this. Okay. Um, so really my focus is on how to define my avatar so I can specifically target higher paying clients. Yeah. Uh, the free service is doing well. I'm getting about 330 users there. So like it's growing by itself per month. Not leading to um just in the last three months by word of mouth.
So 100 100 users a month. Yes. Is it accelerating? Um yeah. So for example, today I got five free users without doing any marketing. Yesterday I got like six. Um I've had cases where I get like 80 in a day if a group shares it. Okay. Um it just like that's more so students and young people that feel like they can do the tech. My ideal was let me share it that way and then some of the users will be willing to pay for it. And that transition has been hard for me. Uh how many of them have you got on the phone with?
Um so in total just three. Um, a lot of them are just students where like they're they're a month. I'm not able to sell them a 1500 euro service or more. Um, for the ones that got on the phone, I got one person as a someone who will be a client essentially. The thing is he's only starting to look for an apartment in September. So, it's just too long of a a timeline for me to wait for that to get a referral and like get that as a result. So, I have two considerations. So the first one is the volume that you have for a free tool is actually still pretty low.
Um and so I would normally say maybe we need to constrain down the amount of free stuff that you're giving so that the paid tier is more attractive, right? So it's like if if Spotify had no ads ever, then you would just never upgrade, right? If they make the ads annoying enough, you make the upgrade, right? And so there's always a sweet spot with Fremium. Premium is one of the toughest models out there. But if done well, you basically have zero cost of acquisition and all of your your marketing efforts. So just so you can reccharacterize how you think about the business, your marketing spend if premium is done well is on ascension.
So think about all of the free users, they should be zero. That the cost of that should be zero. And then where you deploy capital or effort should be on the ascension. And so right now, if you've only gotten on the phone with three out of 300 users, I see that as silly because right now, given the if you're getting five a day, if you told me I have five sales calls a day, the likelihood that you're not going to make money is really low. So I would say like can can you add in an onboarding component that you manually do it?
Because I think those conversations like if you told me six months from now uh because at the rate that you're currently growing because it's accelerating, uh you probably have another 500 users conservatively. If you take 500 calls over the next three months, one, you will make money. Two, you will learn very quickly rather than me telling you what your users want from them what what they will want more and you might end up pivoting the business. I don't know because it's obviously super new. Um, but that is that is what I would do because right now you're super early.
So, it's like we just need to make dollars. You have free lead genen which is the hardest part to crack. So, kudos to you for doing that. But that's what I would focus on. Okay. Yeah. Yeah. So, that's one thing I like I said, I have one client that's willing to pay in September. The one caveat I've had so far is just because I can see the uh the type of home they're looking for. Yeah. Is like 80% of the free users have basically have a budget of $1,000 or less and it's mostly being shared under students.
So, that's where like I I I feel like maybe just um even if I could get them on the phone, like there's still students who literally have no money. You want to ask them because the thing is is you're you're thinking about only one let me say it differently. the we want to channel demand. We do not want to create demand. So demand already exists and we want to we it's like think about this like these rivers of desire and when we market or sell we just want to like carve out a tiny little piece of that river and direct it towards us.
And so right now you've got a flow that's coming towards you. You've got these students that want your thing, right? And so there might be a rivullet that exists there that's like maybe there is an automated thing that's $50 or $100 that you can sell them that and there's a ton of volume there too. So like there might be a play there. But either way right now I think you tinkering on the computer is not going to be the solution. So getting on the phone and also you'll find out quickly. Are there messaging that they're responding to that the people who have money aren't?
Because obviously you're getting all these students now. Maybe you got shared in these groups and that's fine and we don't want to shift the whole you know the whole product roadmap because you had some early traction with a specific demo that wasn't your your your goal but we also have the real the financial reality of like the like the likely in order for this to succeed and increase its chances we need to make money and so I'm okay with it yeah right with it being bootstrapped and you making a couple hundred bucks a day uh just from having those conversations and what'll probably happen too is that when you serve a cheaper demographic first you end up finding ways to automate almost everything which if you can do that you might end finding out that you automating everything for them allows you to be a lowc cost leader which then allows you to serve a huge base at a really affordable price but still have a high gross margin.
Got it. Yeah, that's basically what the free tool does is I looked at what our kind of software are currently charging for like 40 bucks a month and I basically just copied that but for free. Now I just have to yeah figure out how to get people through that. Just ask them what they're what they're struggling with. Like you might find out that you actually are lead gen from moving services, dude. Like the just think the next problem like whenever you solve a problem for a customer if you do it well it always creates another problem.
If I solve leads you'll have sales. If I solve sales you'll have delivery. If you have delivery issues you're going to have revenue retention expansion issues. If all of those things are right then you're going to have leadership and scaling issues. If all of that's right too like we go back to the beginning create more demand, right? So like there's always problems. So as long as you're doing it well just ask them the next thing they're doing. Like you could sell the you could sell the student leads probably like there's a version of this business that doesn't sell anything just sells the leads themselves just to bold itself.
Yeah. Yeah. And just sell the leads cuz the moving company will happily sell you know pay you 200 bucks or 300 bucks for a warm handoff and then you have no work. Mhm. So like there's there's plays here but I think it all is going to start with you getting on the phone with these customers. Okay. So just make like within the onboarding flow whenever they give their email name basically make one step before finalizing just like get online calls. Yeah. And you're going to have no shows to be clear. You're going to but you can also like the moment you get it I would outbound call.
Okay. Got it. Sounds good. That's what I would do, man. Like I'm working on that. Thank you. You bet, dude. I appreciate you, man. All right. See you. Go brother. That was fun. Create flow, monetize flow, add friction. That's always the play. All right. Google Sheets tutorials. No. Bad. Bad. Anime 6. Bad. Um, how do I create a better offer? Well, if only I could write an entire book on it and give a whole course away for free on my site. Um, you can go grab it. Also, if you want, you can get all three of these puppies.
uh all three hardbacks for uh 16 bucks right now. That means $5 a book for hard copies, not even paperbacks. Uh just go to school.com/backpack. Um and you can grab them there. So that's only for us, FYI. Um okay, we going Flores. Doing it. We doing it. We in it. In it to win it. In the meantime, Daniel, if you're a solo creator, how much time you should put towards OpenClaw? A lot. I would probably put the vast majority of my time towards that because you can start building AI first. Yes, sir. Alex, hi. What's up, stud?
Big fan. Big fan. I've been watching you for like 5 years, man. I'm really excited to work with you. Um, pleasure. So, yeah. Um, so I'm going to come on to L3 really, really soon. Really, really excited. But till then, want to hop on the hopline with you. So, I mentored Tik Tok Shop affiliates into getting high ticket brand retainers, brand deals. We're on track to do two million this year, and I want to get to 20 million. I'm turning away clients because I only have one coach besides me and it's my only expense. I spoke Yeah.
I spoke to Ned. He told me to get a coach. 100K. Got it. We're good. Um, so my [ __ ] my best coach was a successful uh successful client first. Uh-huh. So, I know that talent is like in my pipeline cuz I'm training them to get these deals. I'm doing two things, like too many things at once. What should I do? Well, what are the too many things right now? It says you can't take on more customers, right? Because you still have a supply constraint. So, how are you getting leads right now? Uh, right now it's all I do free content, but 90% is referral.
Okay, great. Word of mouth and like we love it. That's awesome. I mean to be fair when you when you help influencers they are by nature vocal people and so they like even without social media that type of person tends to tell people about their stuff. So like that's good. Um but I mean it sounds like you're just supply constraint. So functionally what stops you from hiring a second coach? Well I I uh I will but um it's like that's one coach and then how do I get to like way more? What stops you from hiring 10 coaches?
I feel like it's the delivery. Delivery as in what? So, what part of delivery is the thing that's holding you back? Delivering the brand deals on a consistent basis where I'm like, "Okay, I got it." So, you're getting them deals or are they doing stuff? No, I get them deals and I have them pitch. I basically teach them how to sell and they sell themselves to get the brand deals and you get intros. Yeah. Yeah. Okay. So, intros is the is the constraint, not the coaches. Yeah, got it. Okay. So, you just need someone inhouse who's doing kind of outbound for you, correct?
Is that is that true? Okay. So, um a couple things. There are already platforms that exist that have aggregated a bunch of uh brand deals together, which I'm sure you're aware of those. I would see if I could one do some deal with them. That'd be my first course of action. Second course of action, if I can't do that, would be to recruit one of their top kind of um brand acquirers, whatever you want to call it, um and see if they would work for me. That would probably be my second course of action. Third down the list would be I would spin up an OpenClaw instance and do outbound uh two brands over X followers uh or X sales on Tik Tok and see if and I would just generate it that way.
Um that would probably be my third setup. And so in either of those things if you have more brand deals like whenever you because functionally you're you're starting a mini marketplace, right? So you have supply and demand. And so whenever you start a marketplace, you always want to start with the hard side. And the hard side is the the product. Like demand will come. So like if you're starting, the first thing you need to do if you're an Airbnb is you need to have a place to rent. Okay. Yeah. Right. So you got to get a seller who's willing to rent space, right?
And so to the same degree, you need to go get deals brand like brands who want to give money. And then finding influencers who want money is not hard. Yeah. Right. That's why they have so many. Yeah. Right. And so the constraint of the business, so like what you're offering fundamentally is just money. Like that's what you're basically selling to these people. And so if you want to make more money, you got to go get them more money. And so if I'm thinking about the strategy of the business, I want to reorient my entire business because what you're going to see is every brand deal signed up, you're going to have some math around it.
Do you get any percentage of the revenue that they do with the brand deal? Uh, I tried at the beginning, but it was a little too complicated. They didn't want to do my help then. So, what I did is I have I have them on retainer, so they pay me a flat rate to be with me and my access, but once they're in, they get access to all my my ideas that I've done as me being an influencer myself. Yeah. Yeah. Um, you'll be able to do some math on that. Um, and like the the more grown-up version of your model is you're just a talent agency.
Uh so if you look at like WME or CA um as a model for that, just look at their digital practices. That's going to be kind of like a baseline of like what am I going to look at in order to model uh because you'll find very quickly because the thing is you have a flat rate so you're incentivized by volume. But if you can get somebody to close a you know $5 million deal and you get 10 or 15%. Those add up pretty quick, right? And so that model already exists. Um and since the the industry is very relational driven like the single point of greatest leverage for you is the acquisition.
So what you need to when I say acquisition I mean acquisition of brands and so you need to figure out LTV to CAC on a brand. Does that make sense? So how much marketing effort does it take me to close a brand on entering my network? And it might cost nothing as long as they're willing to take the call. and they'll probably give you some sort of requirements of like we only want to talk to influencer above X or whatever. Um, there's also probably a version of the business that for the low tier allows you to uh pull the influencers.
So like how many customers do you have right now? Uh now I'm at 25 and it's like it's a lot. Yeah. Yeah. So, in time, there's probably a low touch version of this that you say, "Hey, you're like you're not big enough to like really score deals on your own. You've got 20,000 followers or 80, I don't know, whatever your minimum requirement is below that, right?" Um, and so you can say, "Yeah, but they'll do a deal with a hundred of you." And so that allows you to also you can bake in your premium because you're hurting the cats yourself.
Okay? And so there's probably a bunch of opportunity there that I'm thinking about. But if I had to focus all of your effort on one thing for right now today, it's just LTV to CAC on brand acquisition. That's it. And from a tactical perspective, it's I would probably spin up open call. Well, the three that I just outlined. First, I go to the platform, see if I can do a deal. Second, I would go recruit somebody from that platform. Third, I would go open call instance and start doing DMs for accounts that overx and do that on a regular basis.
That would be my one, two, three approach. Okay. And that part makes sense like just look for more brands. You it's usually free. But I want one question I do want to ask before I will there still be cost associated with getting them to sign up and go through the process. Even if they say yes, there's still cost of the outreach, the call, the like there's still cost the business will incur. You know what I'm saying? Because also your ROI isn't even necessarily clear either because you have a flat rate for everybody. You adding more brands indirectly allows you to bring more people on but not directly.
Okay. Now, if you had a percentage, then you could very clearly see each brand does on average six deals. I get this percentage. Average deal size is this. And then you'd have some math around it. But for right now, you're on a flat a flat fee thing. And that's fine. I'm not like I'm not I'm not offended by it. Um but like you will find that some like of the 25, you probably have one guy who's really good or two guys. Yeah. Right. Yeah. Yeah. Yeah. That guy on his own probably has half the revenue of the business if you were to have a percentage-based approach.
And so the the game that you're in is you'll have to decide strategically whether you want to be a volume player or you want to be a high-end player. Both are fine. It's just that we need to decide day one which business you want to build. What do you think is best? It's not a It's not a which is best. It's not a which is best thing. They both work. CAA is a high-end. You know what I mean? Like and those are it's a massive company to the same degree. Many people have tried to build these platforms.
I have yet to see. I don't even know the names of any of them. So, I haven't se like there probably are some big ones. I just haven't seen any of the names. So, I would say it's it's it's probably difficult to do the hurting cats one. Um, but it's it's the nature of almost every service business that you go up in price. You develop a reputation. More people want you. Better people want you. Those people are willing to pay more and up and up you go. Otherwise, you build it for scale first, which means the entire process of marketing, sales, onboarding is almost all automated.
The brand deals are almost all automated, and you're just you're just clipping coupons on either direction. Both businesses are valuable. The high volume one is more valuable if you can demonstrate retention of both brands and So, charging them a flat rate to be in the network. I would I would encourage you to like I have to I have to look more at the numbers but like the thing that makes a company valuable is revenue retention period. And so if you can demonstrate that these influencers never stop wanting to pay you that becomes a very valuable business provided you have good gross margins.
It's amazing margin. It's like 94%. Per what? No. No. Yeah. There's profit. So that's good. But like what about but it's also it's it's you and starting out. So like but what about um retention though? What's the churn on them? Uh before it was like they would stay for 2 months to then leave. I got better came to the event. Um I went to L1 again and did the whole thing and been here and now it's it's uh 90% retention. But I'm really overd delivering. Good. And because I'm like oneonone and it's like I'm like I'm sweating.
I'm like I'm out of time. I do the one-on-one calls. Like I'm running out of it's too much. I can't. That's why I'm turning people away because it's like overd delivering so much. So again, no matter what path you do, whether you go up or you go down, what you're going to have to automate and really get into building out with AI is normally I would say you could hire people, but the world has changed. And so like now you just build this out with AI workflows. You can build a billion-dollar company with this. No question.
And it's because the game has changed. So like if I were to start a marketing agency five years ago, it's not the best opportunity vehicle. You can make some money, but it's a very hard business to make a lot of money in. Fast forward to today. Um I think it was A16Z. One of the one of the guys said this, and I I like the quote, but he said, "The next trillion dollar company is a technology business disguised as a services company." And so you think you're signing up for an agency, but the whole thing on the back end is all, you know, clawed, AI, whatever workflows that have been built.
And so all the stuff that you're doing manually, you have to think about it from a workflows perspective of what are all the actions that I do on a daily basis. You probably do a shitload of them, right? And you have to be able to one by one bucket those actions into workflows that create the outcome for the customer. When you document each of those workflows, and you might have 67, it might be a lot, right? That actually create the outcome for the customer. one by one, you will automate each of those. And so when you do that, you can actually scale this thing to the moon the way you want to.
And the thing is is that no matter what direction you're going to go in, whether it's high-end or low-end, you having all of these workflows dialed in, I see is important and probably a worthwhile thing to do now before you get too overwhelmed in actually running the business. And so a lot of people who start businesses in this, you know, nowish time have a tremendous um advantage over in like existing businesses because like I've got 200 plus people that I got to deal with plus our portfolio company employees. And so I've got a lot of dead weight that I have to to to deal with to move the Titanic whereas you it's like you can be more nimble.
And so like you want to play to your advantage and not like just purposely take on weight when you don't have to. And you're going to clients. Yes. No. No. Not clients. the the employees that you're going to have in order to basically don't grow faster for some arbitrary reason. Fix the ops of the business so that you can get your time down to almost zero. Then scale zero and you can do it now because you got the cash flow and you got the time. So it's like this is it. You got to go slow to go fast.
You dig? Perfect. Thank you so much, Alex. Appreciate you, man. Congrats on the How much did you grow? How much did you uh grow since you've been doing our stuff? The whole business is and Alex mostly like I have their I I read your books all the time every day. I'm in number one like I'm I'm all the whole thing. When I was um when I came out to L1 in September, I was doing about you know I had about five clients and now I I came back. I'm at 27. Signed up one today. We're doing 10K days.
It's been eight days hitting it. 10K a day. That's awesome, dude. I love it's going too fast. So that's why I always ask. Thank Don't grow too fast. Yeah. Rock and roll, man. Appreciate you. All right. What does scale zero mean? Nicola, I will explain that. Um, so scale zero is something that Leila and I say a lot in terms of how do we communicate to our team that we want to get our time to zero or this leader's time down to zero so that we can do a 100 times more. Because let's say you're at 20% time.
Well, as soon as we 5x the business, you'll be at 100% again, and then we'll be capped. And so, it's like, I want to get down to zero so that I can then scale the [ __ ] out of it. And so, this is a go slow to go fast situation, like I just said with him. Um, look at what you're spending your time on. Is there a version of this delivery that I can either automate or delegate to get my time to zero so I can scale? Very common with brick and mortar, right? They're like, I've got one location.
I want to I want to scale to a second. But, they're still spending half their time running the location. It's like, well, you can't scale to a second. You got to get down to zero, have it continue to run, and then you can do the next one. Now, the entrepreneur will typically say something like, well, what am I going to do all day? It's like, well, then we need to look at the business units. Well, one, you can just take off if you want to just to see just to pressure test it. Or you look at the business unit itself, and if you're trying to take your time to build the foundation for the next one, I'm fine with that as long as the first one still builds or still continues to grow and make money.
Um, if you're curious uh what uh what Vantage was, uh I think he referenced it. Um that's the the community you have for million dollar plus business owners. I think I priced it as cheap as uh the people in the community said. I said, "How cheap can I make this without you believing that it's legit?" And they said, "A,000 bucks a month." So that's what it's priced at. All right. Um, I just wanted to have a community for million dollar plus businesses because usually until you get to about a million, it's like you're barely you're just barely figuring things out.
Um, and so million plus is like the problem starts becoming more more repeatable. Um, rather than like, you know, make sure you do the basics. All right, let's rock. Or it's in the pin description, whatever. Okay, let's rock. Let's do it. Alex, what's up? What it do? Nothing. All right, ma'am. I'm Kyle. I sell outdoor lighting to homeowners. We design and install it. Right now, we're doing 1.8 million. I want to get to six in this location. A lot about what you just talked about not wanting to go too fast um into the next. So, I think what's currently stopping me is just an inefficient sales motion.
Um right now I have one sales guy. He just turned in his two weeks. So, I'm starting from scratch on the sales motion basically. And I want to find out when should I hire that next guy? Do I get somebody now and keep trying to fix it or do I fix it and then um Yeah. What do you do? Find a guy. Yeah. So, um to me this is like a a red alerts thing. Now, how much your business is recurring? Uh almost zero except for holiday. Got it. Okay. So, you need to solve this like now.
Do you know how to sell it? Okay. So, you know how to You started selling yourself and then you got the sales guy. Yeah. Yeah. Yeah. I have all the numbers right here. If you want that, I can run through it, too. Um, not yet. So, if So, at first I was worried because I thought he was like the only person who could, you know, get you business and I was like, that would be No, I'm doing about 20% myself now. Okay. And he's doing 80. Got it. Okay. So, then what stops you from Because I moved time like I could do.
It's not cuz I don't know how to do it. Yeah. Yeah. Okay. No, that's good. So, what what stops you from getting uh another guy like him because you you need it? Uh I just want like I think there's too many problems in the sales motion now. It's not efficient enough. Okay. So, I'm wondering, should I fix that myself before I try to train somebody on something that's not even working, right? All right. Walk me through it and then we'll we'll go from there. Um, what I don't want you to do is kill your cash flow, right?
So, I'd rather have some inefficiency and still have cash flow and then we can fix it. But, let let me hear what it is if there's any easy things we can pull. Yeah. Cool. So, right now, CAC is like $1,800 with ad spend and commission. and they're all coming, everybody's coming through Meta. Um the big problem I think is we're closing 3.3% of leads on the year. And the like the front end offer is just we you're our featured property and we give you a big discount for being the featured home of the month. And uh so we added a VSSL in because there was some like it just wasn't fitting like people were like, "Oh, I want this free thing." And we just it wasn't working.
So since the VSSL um which is basically like last month we had or last two weeks 168 leads of those 25% were unqualified just off of home value um 50 shows off the 120 and only closed five of those um with expect like three to five more to close just you talked to 50 out of 120. You actually talked to 50 out of 120. That's great dude. Was it in person or was this uh phone? Um in person. That's great, man. Okay. So, you talked to So, I I don't think up to that part I'm actually not that worried about um I thought that was bad.
Cool. No, dude. It's metal leads, man. These aren't Yeah, because if it was search then it'd be a different thing, but like dude, metal leads are they're just it's it's not the highest quality platform. But you're talking to fundament you're talking to 50 out of 168 even if you have the unqualified 50 out of 120. I mean, we that's not where I think the issue is. Okay. What is the cost per lead, by the way? Uh 36 bucks. Okay. $36 per lead. Okay. Got it. The cost per appointment is like 140. Okay. Got it. What's the um what's your what's your uh lifetime, you know, uh gross profit per deal?
Uh $5,500. Great, man. This is awesome. Okay. Yeah, dude. $140 appointment closing a 5K thing. We can I mean we can make that we can make those numbers work. Okay. So I mean fundamentally you should be closing a third of these appointments and you're closing what percentage right now? Yeah at 10%. Okay. Got it. So we have like we need to do a triple. Okay. So walk me now through in more detail. So the person comes in for the feature of the month. So they is this a lead ad? Uh yes. Okay. So lead ad.
Okay. And then there's they submit, right? And then is there a thank you page that they get routed to? So the thank you page has a VSSL on it. VSSL on the landing page and and like a short one long. Got it. And then there's a schedule underneath of the VSSL. Correct. Okay. Got it. And then after they book uh what happens? Uh they get like automated first text and email stuff. Um, it's pretty low book rate off of that off the page and most of those are manual reachouts to get that's fine. That's fine.
Okay. So, the vast majority are not self-scheduling. That's fine. Let's just run that flow real quick. So, I wanted to say the other one lead form, thank you page, VSSL. They schedule after they schedule. Is there another VSSL that you said a mini video afterward? Same VSSL that's on the thank you page is the one I'm using in case you missed it or something like that. Okay, got it. Okay. And then um either way you're reaching out to all these people even if they self-scheduled, right? I'm assuming. Okay, got it. So of the people. So now let's go the other path since the majority of people are are meaning reachouts.
You're you know I'm sure speed to lead, double dialing, all that stuff. Okay. So we're getting them on the phone. Okay. Now what happens? So on we try to get the appointment as soon as possible. And then here's like the one fix I'm trying to fix. The one thing I'm trying to fix right now is we were not requiring the spouse to be there. So like that was the number one thing is all of them were like this all sounds great. I have to talk to my spouse never hear from them again. Was like the main thing.
So now in the VSSL I like zoom in. Need your spouse to be there. I'm trying to fix that. So I don't have data on that yet. Okay. But just walk me through process real quick. You reach out. You get them on the phone. What do you say? Uh the so the first we're just trying to schedule an appointment and then we get like we the way I word it is we just need to do a quick walkthrough to see if this is even a good fit. And then we go to like appointment reminders all that.
um at the walkth through it's just like let's see this is either an awesome fit and you're going to get 20 lights for free and we're going to do 100 lights so it's still going to be 30k and you just get a basically a 15 to 20% discount or um the second option is well like this isn't a great fit for that but good news is they spend 30k you only have to spend whatever 10k 5k and we'll give you a few lights for free okay So before you get to the house, are these people watching the VSSO?
How are they? So this is why I'm upset. So you get on the phone, you say, "We just want to check it out real quick. We send them reminders. When do they watch the VSSL?" Yeah. Yeah. When the appointment is scheduled, like, "Hey, we're going to meet you tomorrow at 3." Okay. Watch this video before we come out. Yeah. Sorry. Okay. And when you show up, do you make sure that they watch the video? Uh, no. we say yes but no, right? So, let I'll just make sure that we do this. So, um I would also have uh one that they're going to watch beforehand and then uh I'm guessing you do some sort of moment where you like go out to the truck and like do some little calculation, whatever.
When you go out to the truck, hand them an iPad and say, "Hey, you can watch this while I go, you know, call the boss and figure out what the numbers are." And so then it it just preframes them right before you make the offer to close. Now what I want to do is I need to understand more about the because I think part of part of that is we need to have the like we need to confirm that um and then in the reminder sequence are we getting confirmation the spouse is going to be there current like up until now?
No. Okay. So get confirmation with it. Yeah. they say they say uh it'll be like hey just to be clear is your spouse's going to be there too. If they say no then we say hey awesome like let's just get it booked for a time that because if you know that your close rate on those people is almost nothing then let's just let's kill the zombie up front. So just add it to the reminder sequence and so you can say hey just confirm uh you know two things for me. One that you watch the video second that your spouse is going to be there.
If you confirm both I'll see you tomorrow or whatever. And then morning of I do the same thing. Right. Okay. That way they know that it's actually important. All right. So that's on the that's on the on the nurture sequence part. Uh we added in the VSSL um right as right as you walk in and then as you do the calculation. Great. So that's thing two. Um thing three is we got to work on offer. All right. So one is spouse plus VSSL nurture. Yep. And that second VSSL is that just another one of the same thing but different words.
Yep. More proof. All right, third one. All right, tell me about the offer a little bit more because you you kind of went over it. So, you're saying be one of our featured homes, So, if you're the featured house of the month, you get 20 lights completely for free and like a full media package if you ever want to sell. Like, you can use all these photos and videos. Um, and then prioritize install date. You'll get it sooner than everybody else. And then yeah, 20 lights free, but then it's still typically those homes need 80 to 100 lights.
Like we picked the best one of the month, so there's still going to be 25 grand. Our close rate on those is crazy high. They almost all say yes when we actually select the one person. Um, but the problem is obviously like everybody besides the one per month, which for them we say like the way we're dude, do have you you've gone through money models, right? You need to run this as a giveaway. Mhm. So you're you're you're you're not selling the second place prize. You need to sell the second place prize. That's what's missing.
So you say if everybody says they want to get the the first place, then you say, "Hey, you got second place." The asterisk is you can give more than one second place prize away. That's how you do it. Yeah. Okay. I want to make sure you get it because it's super like I messed with this idea but I haven't done it but it's basically you're not the featured property but you are the highlighted home. I could use that. sweet. Just make it second place. And the best thing is the highlighted home gets all the stuff that the featured home does um at 20% discount.
Which is basically what they get anyway because their house is so big. Sweet. Think that? Think you can sell that? Yeah. Yeah, that was it. That was what you were missing. Cool. So, bring another guy in right now. Yeah. I think we just need to fix those two things in the process. But I think the offer was off, dude. You you sold them on this big thing and then you were like, nah. Yeah. That's how it feels every time. Yeah. You just You're not going to be that person. It's like, hey, so um full disclosure, like uh featured home we did have selected, but your house is great and would be our highlighted home.
Yeah. Yeah. And then do you do you frame that in the VSSL at all or only talk about the featured home? So the way that I prefer to do giveaways is that you have your first and second place prize um public and the second place prize is just a discount applied to the first place thing. And so when everyone opts into the first place thing, they all say, "I want this big thing." And so it's a very seamless transition to say, "Oh, you didn't win the thing." Like if I said, "Hey, I'm going to work with you." Like let's say hypothetically I was going to do and you want to show the price of it too.
That's what's important. So let's say that it's like you're going to work with Alex for a year. It's a million dollars. I'm just making this up. All right. You work with Alex for a year, it's a million dollars. You're going to get 12 calls uh a month and he's going to talk to you about your business like he's the board of directors. Okay. Uh second place prize uh gets um gets the same thing um from Alex, the million-dollar value, but you get it for 500 grand. And so when we call people up, we say, "Hey, I've got good news.
I got bad news. The bad news is you didn't win first place, so you're not getting the million dollars free. The good news is you get that thing you wanted for half off. That's how it works. So, it's the same prize. You just apply some discount to the thing. So, one person gets it free. Everyone else gets a discount on the main thing. Six inches, dude. You're six inches away. Yeah. Yeah. Keep going. Yeah. Yeah. Yeah. I love it. on the like. So what happens with a lot of people that end up not booking or not buying is they see the featured houses of the month in the VSSL and they're like my house is nowhere near like this.
So I don't win, I'm out. How do you frame it to that person before the appointment to get them to still get second place? Well, you want to say I state the facts and tell the truth. I'd say we have we have we have a first place and second place prize. Third prize is a set of steak knives. I'm just kidding. Um, and um, I'm going to show you some of our first place prize winners and I'm going to show you some of our second place prize winners because I want to be I want to be upfront with you guys.
I want to be upfront with you guys. We deal with houses in a whole spectrum. And of course, we always everybody wants to be, you know, cover of Forbes magazine. But the thing is is like you can still like this is something you can use for your real estate when you sell the house. Like if you just get these pictures in this lighting, that alone will add more to the home value than the price was. Lighting is one of the cheapest, highest return things that you can do. So this is not even a we're not even you're not even buying anything here, right?
Like you're just getting home value at a discount. Yeah. Yeah. Yeah. Sweet. Dig it. Yeah. A lot. And I would also say the good news is that if you're actually not one of these feature houses for the and to be clear, if you're one of the features houses, love you. That's going to be we're going to have an awesome time. But by percentage, you get a higher percentage value lift with lower value homes. So you actually get a better deal even though you had to pay for it. Does that make sense? Yeah. Yeah. Yeah. Yeah.
Makes a lot of sense. So that would be my pitch. Awesome. Feeling good. Rock and roll. Yeah. Yeah. Yeah. I love it. Love it. All right, dude. Well, let me know how it goes. We'll do. Yeah. Thank you. All right. I love offer [ __ ] Offer shit's always fun. Um, thank you for your books. I am reading your sales book. I sell browser extension where you learn from second vocab. I don't know what that say. Okay. Plan to learn database reactivation for restaurants and bars. They are known to have thin margins. Good idea. How to charge?
Who do I, you know, what kind? So, what's interesting with restaurants, a lot of times they don't have big lists. That's what's tough with restaurants is they don't do a lot of lead capture. Um, that's the only reason. I do agree. They have thin margins. Honestly though, man, like go towards go to the people who've got the money, right? Who's who doesn't have thin margins and has a list? Like, go do reactivations for Med Spas, dude. go to reactivations for I'm just I'm I mean dude I would drive down the road and be like okay which of these businesses like it's there's so many businesses just find one that has better margins find one that has better margins and typically does more lead capture they'll they'll usually have a bigger list um and then all you got to do to make that whole model work is just figure out the offer that generates cash up front that has high gross margins and then you literally just rinse and repeat that playbook and then if you get smart about it which I mean yolo why not um I want you to add in the next services that someone would want after you generate the cash that you can sell them into.
All right. Let's roll. Let's roll. Play. Calm down. Calm down. What's up? What's up? I'm going to see if I can expand my time. If I can if I can stay on a little bit longer. When do you need us to leave to see the location? Who we got? We good? We rolling. What do you think about e-commerce drop shipping? I think it's a great way to start making money and not a good way to keep making money. Oh, I had him. He was there. He was there. He's not there no more. All right, role playing.
You guys are killing me. Uh, okay. Just started a growth business system program for sign companies. Two paths, either video or in person. How do I make this model work? I don't even understand how you do it via video. It's a sign for sign companies. Oh, got it. you want to help them grow. For sign companies, that's unique. Um, I mean, just do it online. I mean, if it's just digital ads and stuff, I would just do it online. There's no point in having brick and mortar presence unless you just don't know how to acquire customers in person.
Okay. Um, all right, Tony, let's rock, dude. All right. Sounds good, man. What's up? Let's do it. All right. So, I sell Yeah. sell tax strategy and tax filings to people overpaying in taxes. Uh, currently make 4 million now. would maybe like to exit for 100 mil. And what's stopping me is not having like a massive brand. So people don't really know us when they think tax. We want to be first of mind. Um make videos but barely get any views but brand will unlock us. You know, hit that premium and have demand gen and you know if we can't build brand um business over AI will start taking our lunches and you know people um won't be willing to pay for a premium relationship you know but ultimately no one will know care about our business and we will not be able to hit our revenue goals.
So just you know how do we build a brand? Been making videos for four years on all social platforms for you know posting five times a week and still can't get views. Okay. So I'm gonna rewind a second. How you getting customers right now? Um word of mouth referrals um from our existing clients. That's our biggest one. And then some trickle in from Facebook groups. And then we also have we run some paid ads um but not really haven't done really well in that in that space. Are you supply constrained right now? Like can you handle more customers?
Yeah, we can handle more customers. Okay, got it. What's the pricing model and who's the avatar? Pricing model is 3,000 bucks. Come in, get the tax savings strategy. So, it's a full money back guarantee if we don't find 3K for you. And then after that, you get enrolled into the membership. You can apply that 3K as a credit over the next 12 months. And then the membership, it's where you do your filing, the accounting, the, you know, bookkeeping, couple calls, the whole enchilado. Uh that's it ranges from complexity anywhere from 300 to 3,000 bucks every four weeks.
On average though it's like 500 bucks every four weeks. And then we sell to a triangle of people. It's business owners, real estate investors and highw. I'm in San Francisco. So a lot of high W2 folks. So anyone that just has that feeling where usually we're their next stop after their Turboax or they're down the street or mom a mom and dad's accountant that doesn't do any tax strategy, we're usually their first stop for tax strategy. Got it. Got it. Okay. Um All right. So, why do you think the content hasn't worked? Not that interesting of a guy.
Um maybe the value isn't there. Um so, like we've gone from like the education side of like, hey, here's all the tax strategies you can do. Come talk about the strategy itself. Um, I know my personal belief talking with my wife and stuff is like I think tax is just a very dry industry. Maybe no one no one cares because people barely file their taxes now. Like we run into people who don't file their taxes even. So yeah. Um might be just a dry ass industry. Yeah. I I I would reject that. Um yeah. So I think uh if you look at um Erica taught me she has a have you do you know who she is?
She's got like she's a lawyer. She does Oh yeah. Yeah. Uhuh. Yeah. Yeah. I mean, I think legal is more boring than taxes. And she's got like five and a half million followers on just like Instagram. So, I don't think tax is boring. I think you might make tax boring. And I say that not in a harsh way. Um Oh, yeah. Also, I probably do. Yeah. I'd also look at um Viven 2. She does uh some financial stuff that I think is more like tactically personal financey. I think there's also like you look at Dave Ramsey obviously he's personal finance as well but in a different kind of flavor more on the savings side but I think absolutely if you did like live like hey well I got two things you can do right now like you demonstrating the expertise I mean look at what I'm doing right business advice could be you know perceived as boring so it's like I mean at the end of the day people like making money and people like saving money and so I don't in some ways if you think it's tax then it's boring if it's like let me let me show tell you how I saved this guy $100,000 in his pocket in 20 minutes.
That is far more interesting. And so I think demonstration of expertise in a world of AI is super super important. Um and it will be something that AI will not be able to fake. So I would say do that as a content strategy. Demonstration demonstrating the expertise. In terms of your um where are you where are you posting right now? Um, Instagram, Tik Tok, Facebook. Facebook's been getting some traction lately, actually. Facebook has the most users out of any social media platform. Yeah, totally. Yeah. Also, buyers on Facebook, dude. Like, like the older demographics there.
And guess what? They have the money. Uh, so I think you should totally double down on Facebook. It's it's actually like people are not using it enough. Like we we grow disproportionately quickly on Facebook as well. Um, okay. So the content you're making, you were making tax stuff. You shifted to making something else. What is that? Oh, no. It's all tax stuff, too. We We've just been making more tax. What's the process? You just say like, "Here's a tax like here's a tax code you didn't know about." Um, usually like, "Yeah, they here's a tax like strategy, paying your kids, Augusta rule, record." Go real stories, ma'am.
Uhhuh. You have How many clients you got? Uh, near 800. Okay. So imagine as part of the value ad that you have, you also do a personal call with them like what I'm doing right now and then you and then you do the fastest diagnosis of their business and you cut it down and you start clipping it. So now it's a value ad and it's marketing because you just it's not interesting because it's hypothetical. So what makes content interesting is stakes, right? You have to have stakes. Yes. And so there's ways of making stakes which is the artificial way which is like you just create a hook.
A hook creates artificial stakes, which is curiosity. What if I basically I wasted my time if I don't hear the rest of this. That's the stake with a good hook. Right now, if we want to create real stakes, it's like uh you know, if someone starts a call and says um I'm on the edge of a cliff, I'm about to jump off. Um and if people actually believe that the stakes on the call are life or death, right? And so you will get watch time. Now, of course, you want to do this ethically and whatnot, but I use it as an example.
And so for you, you need to are you studying anyone in the space that you like admire that you think is doing a good job? Not not studying game tape. Yeah. Yeah, dude. Like look at where the people who are in like I just gave you two, but like you should have like a list of 10 who are doing better than you. Look at the hooks that they're using and then say, "Okay, can I use this hook and then solve it a different way?" So my I don't I'm not a big believer in copying fuels content.
I think it's a bad idea. But if you want to use a hook, I think that's whatever. If you had, you know, you want to reuse five or 10 words and then you have a very different delivery on that hook, I'm all for that. And so I think a combination of studying the people who are in the space, modeling the structure, because you have to hook, retain, reward is the is literally how content works, right? I'm going to bet that your hooks aren't that good, and that the content itself is generic rather than specific. And so people like, think about how silly I use this example a lot, but I think it drives it home.
Like Dave Ramsey literally tells people 3 hours a day, 5 days a week for 40 years, spend less than you make. That's the content. I could make an argument that that is drier than tax, right? But when you get into the story of it and it's like, oh, my husband's cheating on me and he did this thing now. It's like Phil, you know, it's there's drama there, right? So, you can use the stories because at the end of the day, you're just going to give them a couple of pieces of advice and you're like, well, shoot, there's only so many tax codes.
It's like, dude, he literally tells people to spend less. like it could the the the advice couldn't be simpler, but it's the situation, it's the context that makes it interesting. And the stakes is what did you spend last year? And imagine the one where it's like, I have a $500,000 tax bill and I don't have the cash. Stakes. And I bet you, have you had that situation come happen? Oh, yeah. Uhhuh. Right. You have amazingly high stakes in this business and you're just not using it. Oh, okay. So using clients, confirm it's cool with them.
Chop it up, mix it up. In terms of demonstration of expertise, Is that just like a like a like a show? No. No. Like I'm saying demonstrate your expertise. I'm demonstrating my expertise right now. Right. You do what I'm doing. Show you helping someone save money on taxes. Oh, okay. And then use a medium through through a client. Yeah. Are you do you have any in you have because you're local, right? Um Oh, invite me to that. As in like you have in person business. You said San Francisco, so a lot of people you're in the Bay Area, so it's fully remote, actually.
Yeah. Okay. Well, worst case, if they're all if they're all geographically located, you can invite them in to do some stuff. Oh, okay. Okay. So, do it IRL. Don't do Zoom call type. Yeah, I think IRL will work a lot Oh, okay. If you have that ability, which you do, do it. You know what I mean? Got Oh, okay. That's a key part. Yeah. Yeah. I'm like, okay, Dave Ramsey's remote, so I'm not I don't want you to get this belief that it doesn't work the other way, but I'm like, if it's your first shot, you'll have better you'll have it'll be easier to get it to work in person than it will be remote.
Oh, okay. Yeah. So, let me give you the TLDDR on this. You need to build in to your delivery model a mechanism that on a monthly basis you are going to talk to 20 to 50 clients and you're going to talk to them in person or remote and you're going to record that so you can add them give them more value and you're going to structure the call in a way so that you can start with the stakes that they're going through their last year's bill versus this year's bill or maybe how they started and what they're you know the bill that's upcoming and how we're going to try and pay it down whatever it is.
And then you're going to go through one to three tactics that going to help them. That's it. And you do that over and over and over again. Gold. Okay. Nice. Oh, that's solid there. And then fill down. And then are they in that clip or no? Yeah. Get the kids in. Okay. Okay. Get this just get kids in. Yeah. And you can also just blur out the like this is where this is where a phone works well because you don't see the faces. It's John from whatever. Like no one knows, right? So you could just do face and they could do all the financials.
But if you if you have no face and it's just John, who knows, right? So you can do it that way or if they're in person, you can blur out the face. Either way works, man. Okay. And then generally our meetings right now are about an hour. Like would it be that long or no? No, I mean our meeting right now is 10 minutes and we're about to end. All right. So just Okay. Quick things. Yeah, dude. It's just like you're you're you're good at this stuff. You're doing four million bucks a year, right? So you don't suck at it.
So just just give them one or two things that you can that that they can that they can take away. And also, you can just consider calling. Like, you have followers, right? Even though you've been posting for a while, DM some of your followers. Just say, "Hey, want to do a free free tax, no pitch. I'm just doing it for content. Your lucky day." Nice. Uh-huh. Cool. Dude, so solid, man. Thank you so much. Appreciate you, dude. All right. Take care. Rock and roll. All right. Um, Vantage is uh the group that I'm taking the calls from.
It's our million-dollar plus community for business owners. If you are a million dollar plus community, if you are a million dollar plus community for business owners, you'd like to join, you can go there. I priced it as cheap as uh they would let me. Um, I just asked them, "How cheaply can I put this?" And they said, "Make it $1,000 a month." Um, even though the revenue maximization point, by the way, was $5,000 a month. um the cheapest amount the point of marginal cheapness which is beyond that point people would not believe that it would be possible uh was 1,000 which is why it is priced that way.
So if you're if that's you love to have you uh inside we do lots of AI stuff which is uh what we're focused on. All right um rock roll. Let's see. I'm going to do let me do one from the chat real quick. Uh Alex, what is your advice for people at rock bottom? I live in a third world country. I tried to offer B2B AI augentic services starting in US, but there are compliance and trust issues. Um, I don't know what the compliance issues would be. I mean, it sounds like you just couldn't sell people.
Uh, there's no issue with like you could sell a Gentic setup services to businesses all day long till the cows come home. So, I don't think that's a problem. Um, I will say that I'm I'm going to bet just off of the the the name that I saw. Um, that you probably need to do a cleanse of your social media to make it look like you're a legit business. Uh, you need to make sure that your content looks like it's AIed out and looks clean and good so that they're like, "Man, I want my stuff to look like this and look dialed." And then your outreach attempts and things like that, those calls will go better.
Also, if you have a very, very, very strong accent speaking English, it will for sure affect your sales. With that, let's rock. Hello. Hello. Alex Herozi, I love you. I love you, too, man. Let's rock. Uh, so I'm I'm Abram. I uh I have an easy natural weight loss program for women online. Uh we do $4.1 million a year right now. and we'd like to be at $12 million a Uh what is stopping me is consistently filling the sales calendars with qualified leads. And if I don't solve this problem, then you know my team can't support their families and not hitting my goals bothers me to no end.
Um so how could I get more qualified leads on my sales reps calendars consistently? Yeah. So they can feed their kids and not be homeless. What are we doing here? Right. All right. So, uh, primary way of getting customers right now, uh, it's, uh, basically 5050 between meta ads and organic. Okay. And is it IG is your your organic? Uh, mostly, uh, it's Facebook and Instagram organic. Got it. So, it's meta. All right. So, meta, organic, and then meta ads for uh, correct. Yeah. On paid. Okay. Got it. Um, what's uh what's price point and what's CAC?
My price point is $10,000 for a year. Or $5,000 for a downell for a year. Got it. I'll pull up our cost to acquire a customer. Right now it is $1,193. Cost to acquire a customer. And is that paid or blended? Blended. I don't I don't know how to separate them anymore ever since I've been doing paid and organic. It's like it's really hard because like they'll they'll go through one path and then they end up out the other end, you know. I got you. So, 1100 is blended. 1100 is blended. Correct. Okay, that's not bad.
Okay. Um All right. And then you said 5 and 10k. What's the average ticket? The average ticket is is 5,087. Oh, so most people go for the five. So you anchor at 10 and then most people drop down to the five. Correct. Yeah. Okay. Got it. All right. 57. Okay. Got it. So you need to scale your your your demand gen side. All right. So dude, weight loss is tough, man. Um h it's tough, man. The reason it's tough is there's no revenue retention in the business, right? Like after you sell this thing, I'm guessing they don't buy something else, do they?
Uh yeah, we sell them into our back end, the community for it, they typically stay on for two to three more years. Okay. What's the price point of that? Uh that one is like a fourth the price. We we basically we took the money models um approach where we Yeah, exactly. So, uh, after the first one, we sell them for basically half the price. So, like 2500 upfront, and then they do a monthly recurring, and then they get to keep that monthly recurring for as long as they stay in the program. And what's the price point of the monthly recurring?
Uh, it's anywhere from $50 to $150 a month. Got it. Yeah. Yeah. And so, that's where the churn is super low because they pay. So, what percentage of people go into the 2500? Uh, 70% go into the 2500. Yeah. Astonishing, dude. Yeah. And they're they're actually thanking us on the sales calls now because they're like, "Oh my gosh, I cannot believe you're letting me do it." Because we increased the price of our program by $1,000 every six months. We're very public with it. Yeah. So, everyone that's in the program already, they're like, you know, we have people that join for $3,000 before and now they're like, I get to pay, you know, Yeah.
100 bucks, $1,500 plus, you know, $100 a month. And they're like, oh my gosh, this is the best thing ever. Dude, I love it. I almost wrote a whole chapter on it. I love it. Uh, okay, cool. So, we have to increase demand. I mean, if that if these numbers are true, which I'm assuming they are, right? Um, if you had a three month a three-year stick on a hundred bucks a month, uh, you've got 10K on the back, right? Plus the 2500, you got 125 plus the 57, right? So, you're you're at almost, you know, 18,000 in LTV, right?
And a lot of that's margin. Yeah. Yeah. A a huge part of it is margin. Yeah. What's margin right now on four on Oh, like what do what do we take home? Yeah. What's your net? Uh my net for a crap. I'd have to pull up the other ones, but um it anywhere about 120,000 a month I take home for my what I take home. Oh, a month. Okay. God, I was like, what the hell? Okay, got it. So, you're doing uh 1.4 on four. Yeah. So that's like the net net like if we're just talking about the uh net operating costs or things like that or you just mean like net that I take home.
So you got So yeah, so you're at you're at like 30ish% net margins somewhere in there. Yeah. Okay, got it. So what happens when you scale your paid? So ever since the drama hit, it's been way easier to have profitable ads. Like it's so crazy because as soon as you put something up, you spend like $30 and we get a 5k painful like the next day. a week later it is just hammering money like and or or the lead quality just goes to [ __ ] like right away and we have to shut it off. So um I'm basically just cranking through a ton of like things for to feed the Andromeda engine.
Yeah. And that works to a point, but I can never seem to scale it up to wherever I want to get. I've never found a I've not found a true winner in like I feel like a year now. They've all just been really short cycles. It's because the game has changed. And so what you need to build So this will be really this will be really good for a lot of people, not just you. So you obviously have like when you have weight loss in the business like yours, it's all demand, right? And so um rather than me say, "Hey, let's make more better content." I think that that one seems obvious.
Um, I think what you need to build is kind of what I was talking about from the tax side, but you need to build this you need to build a self-licking ice cream cone within the business that can basically make you an affiliate army. So, for example, like we put out gosh, I would say collectively probably 500 pieces of creative a day. And so you just aren't putting nearly enough creative out. Which means like if that is the if that is the true limitation of the business, which it is right now, like right now the thing that's limiting your business is your creative.
You need more creative. And so that means we need to have a process or a system that creates creative. And so my my curiosity would be, is there a way that we can create a cycle for your customers to make reels and shorts about your stuff? and basically keep their instead of paying $100 a month, it's like you can pay $100 a month or you can make me two pieces of content a week or five pieces of content a week. What does that content look like? Them you would look at all the strongest hooks in weight loss, tell them what those hooks are, let them use those hooks, and also make their own because that's how you discover new ones.
So what you need to do, so are you familiar with Tik Tok shop? Okay. You want to create your own Tik Tok shop affiliate system fundamentally for people to create creative to promote your thing. Like this is what will take you from four to not 12. Like this will take you to 50. Like this is the highest point of leverage in the business for you. And so answering the question like how can I get a hundred people to make me five pieces of content a week. So you get 500 pieces of creative and with Andromeda the algorithm will read number one what they're saying number two what they look like in the room and so it will match because all Andromeda did which is why the ROI is so high is they just took the the idea of national ad campaigns is like gone.
It's all sub-segments because they want the they want the process rather they want the experience for a consumer to be feel like the algorithm is so catered to them which means that advertisers can no longer just be like hey buy my [ __ ] right it's like you have to be like oh you're just like me who look like you talk like me and you're making those recommendation now more likely so marketers love it and hate it because it's your experience is 100% what Andromeda does you get better rorowaz and it burns out in two And so I just happened to come like the biggest gift I ever got was I started as a local business owner.
And so I had the same 100,000 people I could advertise to. So I had to make fuckloads of creative before it was cool. So that's why I I I flex this muscle a lot. And so it but your needs at your spend is beyond like you're you're going to need I make your target 500 pieces a week. 500 piece a week from the my clients just talking about whatever these hooks are. So if I Andromeda the static and um uh static and video. Yeah, that was going to be my question because the uh when I have uh Andromeda I have that's exactly what my split is right now.
It's like 50/50 uh text and images and video but uh the messaging has to be 100% unique between every single creative for it to crank like that. And I I mean like literally nothing is the same. Like the like the entire thing is com all of them are like 100% different. That's why they crank so much. But so if I have my clients doing this and they're putting out this five piece of content, am I telling them, hey, these are all the best hooks. Everyone record these best five hooks. They can make the same brand messaging.
They'll be fine. Yeah, they get like they can for like if you have different people saying the same thing, that's totally fine. Okay, that would still that would still be okay. What about do I need to worry about like brand messaging inside of like what they're saying where it's kind of like prove it. I mean you can watch them. Oh no. I mean like uh like I want to sell easy weight loss for women. Do I have to make sure they say that specific thing? You know like or do I have to say like I want lowered my cortisol.
Dude, if you can get that past the ad scraper, if you get easy weight loss for women working amazing. A lot of I mean dude you're skating on thin ice on that one. Easy fast weight loss. The only thing else you need is free and you be and you hit you'll hit the trifecta, dude. Yeah. Free guaranteed. Yeah. Fast, easy, free weight loss. Uh, no. That's what you need to do. You need to build out the machine. Um, and do you already have um AI automation set up so that you can get 100 or 200 uh statics a week just cranking to you uh without you doing anything?
Uh, no. I write out all the copy. Um, no, I'm in that. Every day. No, dude. No, dude. Yeah, that's because I' i've tried. Yeah, because I've done the uh the AI ones I've done or I guess it's all testing because I I don't know like some of the ads I think suck ass and all a sudden I put them out and they rock. So like I don't know what's going to be good. So, if I'm putting out the different uh like text and imaging things, do you have like best practices that you guys have seen work right now where if you guys are are you doing like five different um image or one image and like five different copies and then you're doing advantage creative or anything specific that you guys are seeing?
Dude, we're just cranking so much variety and then whenever we do have winners, we add it to the winner the winner sheet and then that feeds the AI. Gotcha. Oh my gosh. Why am I not doing that? All right. I've been I took my winning emails. You know, I should Why am I not taking my winning ads? Like, all right. So, makes a lot of sense. Good talk. Awesome. All right. I will definitely do this. Yeah. Thank you so much. Yeah, you bet, dude. Rock and roll. All right. Uh what do we got? We got uh Is here?
He's here. All right, my peeps, I appreciate you. Um, hopefully you enjoyed this. If you uh want to hop on one of these calls, you can hit the the link there um at the bottom. So, there it is at the bottom. And otherwise, uh I love you all. I hope you guys are crushing your goals like uh beer cans that you just drank onto your forehead. And uh yeah, with that, be fruitful and multiply your blood lines out.
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