From Day 3 Of My $105M Money Models Book Launch | Ep 897

Welcome back to the game. Today is day 3 of the Victory Lap series of the $100 million launch for the $100 Million Money Models. 72 hours, record-breaking Guinness, rahahaha, all good stuff, things like that, awards, plaques, and all that jazz. But today's all Promosi Hotline. We clipped it so that it's just that, but we also had a couple of unique things that were different on day 3 than the other 2 days. 2 main differences. So number 1 is that I had way more involvement with Sharon and Leila. So that was a lot of fun. And I think you'll see the dynamic and see Leila and I's marriage and work dynamic more prevalent in this.

Than you probably ever have.

You also see Sharan and I's dynamic as well, because he's president of ACQ and he's committed. For those of you guys don't know who Sharan is, Sharan's had two billion-dollar companies. And with ACQ, we're going for— we're going for— he's going for a hat trick. And I think we're making great progress along that. Beyond that, though, the end of the stream, we did a little bit of reflections on the entirety of the launch. And I think there's some pretty high-level, very valuable nuggets that kind of get shared there. And I think you might enjoy them. And so this is the day 3 Bring It Home livestream that crossed the $100 million barrier. And listen to this in the background while you're driving, while you're going to the gym, while you're cleaning, because I think there's a bunch of super tactical things that we've gone over in that period of time, and many of them may apply to you. And yet again, the offer that we talked about, which is the donate books and get free stuff offer, is no longer available. That being said, the book is obviously available. So if you haven't picked up a copy, you can go to go.hq.com or on the Amazon. It's also there. So enjoy. All right, everyone. We are in the final hours of the launch. And so at midnight Pacific, which is 11 hours from now, all of the bonuses associated with donating more books will go away. And so based on all the things that you guys said, you guys enjoyed Hermozy Hotline. And so I'm going to be doing a lot of those, trying to get as many of you guys on the phone, help help anybody out. Um, uh, we're gonna be doing some giveaways, just some free prizes, give, uh, giving stuff away. And on top of that, I think I'm gonna be reading a couple, uh, of the chapters from the Lost Chapters. So inside the Money Models book, I basically put the 15 most effective, uh, model mechanisms that are in there, but I have others. And so I'll, I'll explore some of those guys with you. And, um, I think if you're seeing this correctly, uh, there should be some milestones that we'll try and hit along the way to close. This out as we ride into the sunset. And then I retreat back to, you know, Willy Wonka's factory and then spend the next few years trying to put something else really cool together for you guys. All right. So first up, we're talking to Heather, Nat— Natural Rev MD. All right. Let's give her a call. Let's see what Heather's up to, shall we? Hello? Hey, Heather, what's going on?

Hi, how are you?

Good. So you've got 5 minutes. Tell me what's the biggest, what can I help, like what's revenue right now? What's profit? How can I help?

All right.

Sounds good. Gang, I'm just gonna give you my background. A medical billing company started from scratch.

$190,000 fund, right?

Okay. And we're at 25% net profit. I do this on a somewhat semi-passive model, meaning I've got an executive team that runs day-to-day ops.

Okay. What's headcount?

Biggest thing— say that again.

What's headcount?

So 7 W-2s and then the rest are contractors that we, that we have. So maybe 65 total.

Okay. Got it. All right. So what's the— where do you want to get to and what's holding you back?

So leads are biggest issues. So I've not done other than my podcast, which has been 100% what we've done for marketing. I've not done ads. I've not done really Cold outreach, like nothing. It's podcast 100%.

Okay.

But leads are inconsistent. Like it's feast or famine, you know? It's, it's, yeah. So it's, I don't know if I, you know, I was saying continue to podcast and that's worked.

Yeah.

I guess I show up on other people's podcasts, all the things.

Yeah.

But do I start another acquisition channel or do I just keep doing?

How many podcasts a week are you doing?

I've done 110.

No, per week.

Oh, one.

One. Okay. So an easy one is to combine outbound with your podcast and invite people who would be potential customers or whales onto your podcast. You'll have super high response and show rates and talk to them about their business. Sorry.

I do a little bit of that, but maybe I should be doing more.

Well, yeah, if you're doing one a week, it's not a lot, right? So yeah, I'd be doing like, can we do like one a day? It's like, well, there's a 5x. It's like, that's just that.

Okay.

All right. So that's, that's like, I think about like least operational change possible that we already know doing something that actually works. So that's thing one. Beyond that, give— what's the, what's the avatar of who you're going after for medical billing?

Private practice facility. You know, really, we want their collection to be, you know, greater than, you know, $150,000, $200,000 a month. And that's been the other problem is in the very beginning, right? Small client, small fish.

Yeah.

That has improved where we've gotten bigger fish over the time. But But yeah, getting the right avatar or getting the right client in the door.

Yeah. So I think conferences are going to be really good for you. Because I said the way that I would set this up is you go to the conferences, I would pay for the booth. If you can get on stage, even if you have to pay for it. And one of the benefits of this is that when you— I go, I try to do the first one as you turn right into whatever the area is, because 70% of people turn right. And so they're typically organizers price them all the same by size. but you'll get more ROI from on the right hand, right by the door. Number 1. Number 2, I would create some sort of giveaway for people to win that you'll reveal on the second or third day of the event. And then by doing that, you'll get— they basically have to give their contact information in order to enter the giveaway. And if you want, you can model the way I did it. It's better than this and it's less than that. So it just gives a little bit of sandwich of value of, okay, it's better than NFT, less than Bitcoin. It's Better than a gift card, less than a Tesla. I like to have some sort of sandwich of up and down value in terms of the giveaway. And so the whole time you're collecting leads, and if you want, Tron talked about this yesterday, but you can say, hey, I have a $25,000 speaking fee. Instead of the speaking fee, one of two things you can do. So one is, can I send one email to the list? That's an option. And then secondarily, when you do your presentation, your slides or whatever, you can say, hey, if you want these slides, like, Joe, like, just give me your email and I'll send them to you. And then you can just basically ask 2 or 3 more questions and then it'll sort out the traffic of the people from the audience who are the most engaged. And so I think if you, if lead flow is the number one issue, then that gives you two things. So one is you 5x your podcast and using outbound to get more of the quote whales, and that's going to be super targeted. And then from a speaking perspective, that's three different ways that you can monetize the conferences. So. Getting the list, survey closing from stage, and then also having a giveaway at your booth that's bigger and badder than everyone else's so you can collect leads that way too.

Awesome. Done. I can do all of that.

Rock and roll, Heather. Enjoy.

Appreciate it.

All right.

Thanks so much, Alex.

Have a great day.

All right.

Thank you.

Bye.

Bye.

So as my birthday present to myself, I'm going to help as many business owners as I possibly can. All right. So that's the goal for the day. That's what we're doing. For those of you who are hopping on, we're closing out the book donation drive. I've got all these prizes and bonuses for anybody who donates over 200 books, but they all disappear at midnight Pacific. So if you're like, I don't know if I should— if you're one of those last-minute people, this is now the last minute. Beyond that though, I'm just calling people as they come through and the 800— basically, people donate the most books, I'm trying to call as many of them as I possibly can. That's what we're doing right now. All right, so we got Dacian Floria. All right, let's see what Dacian's up to. 80% margins. Hmm, wonder what this business is. Dacian, what is LIMS Plus?

Well, it's an environmental testing platform for environmental testing lab.

Thank you, man, and thank you for doing this as a gift.

You bet, man. Come on. Um, okay, so 200— well, thank you for donating books, which I super appreciate. All right, you got 5 minutes, so let's rock and roll. So you have a, a testing platform. Got it. Uh, you're running 80% margins, which is super, super impressive. What's the issue right now? What are you trying to get to?

I try to make money. The only problem, or the biggest problem I have right now is that I have this software platform.

Yeah.

I start getting B2B in that, like they're enterprise.

Uh-huh.

They have like usually 2 to 3 people or maybe more that I have to talk with to get a deal done. Usually the deal size, the deal size is starts at $50K upfront and then it can go to like $100K. Yeah. And I go into an annual recurring revenue of $50K usually.

Cool. Cool. Okay.

The problem I have is that I don't have anybody in the pipeline and I don't know how to get them in.

Yeah. You're like, I've got this great business. There's no one, no one's buying it. So is it $250K a month or $250K a year right now that you're at?

A year.

A year. Okay, got it. So you're really not getting that many clients if that's your price point. Okay, understood. So what did you do to get these— what did you do to get these first clients?

The first client was luck via cold call.

Okay.

And the second client was same cold call, and the third one was trade show. So I have 3 customers right now.

Okay, heard. Okay, so you've got cold call, trade show, and what was the other one? Cold call as well. Okay. So how many cold calls did it take to get you the one deal?

Well, it was a while ago, probably around 100, but it was luck.

I mean, dude, that's how it works. You did. I mean, you're like, I did 100 and then one of them bought. It's luck. It's like, no, you did 100. It's like, it's like if you called one and one of them bought, that would be luck. If you call 100 and one of them bought, that's just a process. So let me ask you this way. So I've said this before, but it's super common for Sub a Million, which is that what feels like volatility is actually a symptom of insufficient volume. I mean, you're not doing enough, which is what makes it feel erratic. And so it's like you did 100 and you got one, and then you did other cold calls and you got the other, right?

Yeah.

Okay. So how many cold calls did it take you to get the second one?

Probably around the same.

Okay, so that sounds lucky though. The second one sounds lucky. The first 100, you get one, you know, that you're— I'm saying here, you made 200 calls, you got 2 customers. So the question then becomes, what stops us from doing 10,000 calls? Well, one would be that You need leads.

I'm not that good at cold.

Well, dude, you got one. Dude, 1% conversion on cold calls, by the way, fine. Totally fine. On a $50K, $100K price point, totally fine. Do you think of it like this? You're making $500 a dial. Yeah. Yeah. That's, that's pretty good for a dial. I don't know about you, if I want to go out to dinner tonight, I'll be like, okay, I'll make one dial. There we go, I covered my dinner, right? Of course you have to think of it because you've gotten your head about this. Like, every time you make 100 calls, you get a, you get a deal. Then it's like, how do I need to game this for you so that you just make 100 calls every day? That— okay, so what you have— we have 60 seconds. So what's the thing that's holding you back from just saying like, yes, that makes sense?

Well, that makes sense, but I don't know how to get myself leads.

Okay.

It's right.

Then that's the leads list.

Second one is, yeah, the second problem is how do I position myself? What attraction offer can I create so it makes sense for these guys?

Well, for a bigger, for a bigger company, a wave— for what you have, a waived fee structure, which is the third fee structure that I talk about inside of the continuity section for money models. Which is you have a big upfront nut where you say, hey, it's $50,000 for me to do this whole integration, and then it's $5,000 a month, month to month, right? It's like, or, uh-huh, if you want to commit, I'll waive the $50,000, but you gotta commit to the whole year.

Yeah. But they, they anyway, you do that because all their data is in our system, right?

Well, the thing is, is, but you're, but you're just, no, no, dude, I, I get it. The, the way that a money model works from a positioning perspective is that you don't, like, whenever you give someone a choice, it doesn't mean that you're saying you actually give them the choice. You give the illusion of choice that then obviously selects or waits for one of the selections. Mm-hmm. So you'll basically, the question that you had is how do I get more of these people to sign up? How do I make it more compelling for them? Well, if they think that they're getting something that costs $50,000 to set up for free, They're far more likely to do it than just saying, well, I do that anyways. It's like, yeah, no shit. But the problem is that they don't know that. Mm-hmm. You know what I'm saying?

Yeah. Makes sense.

Okay.

So I'll give you, let me, should I put this into an ad or something?

No, I think I actually don't know. That's, this is more for the mechanics of, of how you actually close when you, when you get into the, into the, oh, okay. Into the thing with them. Um, but let's solve the original issue really quickly. We are over, so I'm gonna just make this as fast as I can. They gotta get the next person. Okay. So number 1 is I would say, uh, list brokers. You can do that. Number 2 is you can scrape using software. Uh, number 3 is that you can go to, uh, people who own groups or communities that, and there always are some, you just look, there's, look, there's someone at school, there's someone on LinkedIn, there's Reddit, whatever, right? There's definitely communities for these people. Mm-hmm. And then you wanna pay the group owner to basically make an ad inside of the group. Those are 3 different places that you can look like right now to go get leads. Okay, cool. Also highly recommend flying out there and saying, hey, it's, you know, you find out that they're in California, you know, like in Los Angeles, you say, hey, it's so crazy, I'm actually in LA this week. I figured there might be— I'm happy to swing by while I'm in town. And if they say yes, then you just fly there. Okay, that's how that works.

Good one.

Yeah, rock and roll, man. Appreciate you. Thank you for donating, Book Station. Oh, thank you, I appreciate it.

All right, bye.

All right, next up we got Shamane. All right, Shamane, here we go. Easy Dwell. So I think this is— I'm guessing this is like a home, like dwellings. Dwellings, that sounds, that sounds legit. Shamane?

Hey, what's up, Alex?

What's up, dude? Oh, honor's mine, man. Did I say your name right, Shamane?

Chamagne. Yeah, that's right.

Okay, rock and roll. Okay, so you're doing $3 million top line. What is EZ Dwell?

Oh, EZ Dwell, uh, we're out here to change the way people buy homes. We sell them in an LLC, like a business that owns the house instead of like traditional financing.

Okay, got it. Uh, so you're doing $3 million top line, $5 million— sorry, $500,000 in profit. What's the, um, What's the, what's the constraint? And we have 4 and a half minutes left. So what's the constraint right now?

Oh, right now there's a team of about 20 of us.

Okay.

And so I'm getting into like the acquiring and training of leaders. Our goal is to do 280 houses. So we've done in the last 2 years 46 acquisitions. We've sold 30 of those. We're scaling up. Dispo, dispo, where we sell the properties is really how we, I think, can get our CAC up on that. A bunch of stuff, I guess. I mean, I'm trying to get to 280 in a year so we can iterate quickly enough. You know, launching an investment fund of $18 million.

Are you, are you wholesaling?

Yeah.

No, not wholesaling. So we'll, it's like a fund and an operations company. So we buy properties, sell properties, and we raise capital. But we've also like structured it on our own model.

I do. I'm, I'm so confused. What? Like, walk me through how you make money.

Okay, so let's say you have like a 2% rate loan.

Yeah.

You're tired of your seller financing, doing like sub-2s, so they're transferring the mortgages. So sub-2s, you can run cash, but right now we're leveraging sub-2s because of capital constraints. Buy a property, average cost $25K. Pay the operations $25K, holding costs, marketing, et cetera. Average deal cost is $65K. We'll sell a property to a buyer. Average time on market right now, about 90 days. We want to get that down to 45, collect $25K upfront, and then about $800 cash flow for the next 30 to 40 years. So we're not a 3-to-1.

Yeah.

Yeah.

We're like 60% cash on cash at the fund level, at the total level. And then let's say we take that $25K, we do that twice. Now we can buy another deal so we can cycle those funds back in. So we're trying to build a compounding machine with a lot of stickiness.

So what do you need? You need what, $18 million?

Well, we need to be able to acquire more properties.

So you need capital to acquire more properties.

We know the capital we have.

Okay. So you just don't have enough deals?

Yeah, not enough deal flow on acquisitions right now.

Got it. What are you doing right now to get—

It was sales, now it's acquisitions.

Okay, I heard. So what are you doing right now to get deals?

Just wholesalers, wholesalers in the state of Florida, Facebook groups. And we've been doing it for a year, so we know a lot of the people.

Yeah, yeah.

But we've had some team— there's a lack of leadership over there right now, which I may need to kind of jump back into.

Yeah.

Okay. So, so what stops you from just like basically instead of buying from wholesalers, just learning how to wholesale?

We started out wholesaling.

Okay.

And it was—

we were doing— we'd pull all the pre-foreclosures, we'd do cold calling.

It was just—

it became way more leverage to just go to the wholesalers who had already negotiated on those and buy from them.

So, so then, yeah, all right. So if I'm you, I'd be thinking, what are the wholesale networks and associations that I can get into so that I can just say like, I am a guaranteed buyer for all of this stuff? Because it sounds like you have a pretty good, you know, return on capital. You're getting 60% cash on cash returns. It's phenomenal, right?

Yeah.

So I'm just basically— you can outspend if you have that kind of return. Even if you got 50% cash on cash, you could still, you know, you still be probably pretty happy. If it meant you could double the amount of deals you did, right? Yeah.

So we've— part of the problem, like we've, we joined like some of those groups and we've like there's a site where all the wholesalers post their deals on Facebook and we've quite literally scraped like all of them. It's almost a lead problem at that point. We're now shifting to look at portfolios like, yeah, who owns 170 homes?

Yeah, I understand. Yeah. But my thing is, is that you've only done 40 to 40 deals in the last 2 years, something like that.

42.

Yeah, yeah, yeah. I mean, you're not even close to tapping the wholesale market for the state of Florida, you know what I mean? You're not even close. There's no— like, you're not even close. It's like, not— you're like not even a blip on the radar. Like, I just want to break your belief around this. Like, you're not like, oh, I've, I've, I'm in every single one of these groups. Like, dude, you're doing $3 million a year wholesaling. You're not, you're not even close. Like, a single franchisee for some of the wholesale franchises that exist average $3 million a year per location.

Right. A lot of that's cash though, no?

What?

I'm not trying to protect my limiting belief here.

Um, yeah, no, no, you're not even close though. I, I like, there's zero way, no chance, not like, not even in a million years. You're not even close. Okay. If you were like, I'm doing $200 million a year in Florida, I'd be like, okay, he's one of the bigger players. Like, you're not even close. Okay, just, so let's just like blow through that right now. I do think that you revisiting the idea of like, if I'm you and I want the fastest way to grow this, I'm going to find the biggest wholesale wholesalers and see if I can bring them in-house, because they're just giving you what they're giving you, not what they have. Yeah, right. They sell to other people. So it's like, I want to bring— like, again, I like to control the whole funnel, right? I want to say, like, how do I go from click to close? How to own the whole thing? Because, like, if I, if I could be vertically integrated here and I can bring someone in or acquire— like, you have the cash— if I can acquire a wholesaler who has a good amount of volume then it's like, I have a way better monetization vehicle than they do. And so then it's like, I buy something that cash flows and then I just have another way to make even more on it. And so it's like that business works on its own with mine. It just juices. And I love, that's the game. Those are the games I like to play.

Yeah.

Right.

Juicy games.

Yes. Juicy games. Big juicy games. I got to call the next person, but hopefully does that like, first off belief broke it. Like you are not even close. Not even close. Yeah. Okay. Yeah. And then number 2, it's like, what would it take? And this is the question that I would ask them. What would it take to be your exclusive person, um, to get all of the deals that you're doing? I would ask that as like, if I had to make money tomorrow before even doing anything complex, I'd call every single person I did a deal with over the last year and say, what would it take? Okay, cool. And you've got the returns, man. If you get, if you go from 60% to 50 or 45, but all of a sudden you have exclusive pipeline and that triples your pipeline, then there you go.

Yeah, I appreciate you.

Thank you.

Appreciate you, man. Thanks for donating books. All right, all right. So, uh, anyone hopping on, I'm just calling all the people who donated the most books. So we have a bunch of 800-book, uh, donors, and so I am calling them. Um, and this is in spirit of the, uh, the, the final countdown. I think we're at 10 hours and 10 hours and plus 10, 10:40. Yeah, 10 hours, a little less than 11 hours, um, and we're going, we're marching on. All of these bonuses disappear for anyone who donates 200 more books. Uh, all that stuff disappears in 10 and change hours. All right, so if you are a last minute person, this is the last minute. All right, dang duong. All right, calm down. All right, calm down guys, let's not get carried away. All right, Infinity Medical Consulting. Infinity Medical Consulting. Dang Duong. What's up, man?

Hey, hey, Alex.

Happy birthday.

Thank you again for your time and helping us with our constraints.

I really appreciate it.

You bet, man. Thank you for donating a ton of books. All right, so you got $5 million top line, you got $2 million in profit. Okay. What's the, what are we, what are we working with here? We've got medical consulting. What's holding you back? Yeah.

So essentially we are dealing in the space of chronic wounds. So we help folks with chronic wounds close their wounds. So the largest constraint that we have is trying to pull down on our specific avatar in terms of the actual patients, because the LTV is once it's closed, it's closed. There's no more LTB afterwards. So we're trying to do Facebook ad leads that actually constraints it to Medicare Part B. That's the specific insurance that we're able to accept to provide the service for the patient.

Right.

But I don't know how to essentially filter out so we can have that specific avatar in terms of Medicare Part B.

Okay. Well, what does the application say? What does the ad copy say?

So essentially, we are here to help with heart and your wounds. I think it's very generic and we're trying to refine it. And then essentially provide a PDF so that it's layman, so folks can understand the ones that they're having and seeing if they could help themselves. And then the times when they don't get treatments from services that does stand.

But you make money from Medicare Plan B, right? Or that's what you just said, right?

Yes.

Okay.

Yes, yes.

But so you just want the people like— not from a— not from a humanitarian perspective. So I'm just purely talking business here. The point for you is that you want to get as many Plan B people as possible. Right?

Exactly.

Okay. Exactly. So you're trying to get as many Plan B, and right now you're getting, you're doing Facebook ads and you're, and you're getting some people that are not Plan B, right?

Yeah.

Okay. So I want, before we even like fix that, I wanna understand, is it really a problem or is this a feature? So let me explain right now. How much is it, how much is it costing you to get one of these people versus what you make on them?

Um, so it's costing roughly on average about $15 per acquisition of a lead.

Right.

And, and so it is a range based on the wound size. So if it's a 1 by 1 centimeters, it's less of a payout than compared to if you have a big gigantic wound that's 100 centimeters. So if we can refine the wound size and then the qualification, because the only payout that we receive is Medicare Part B. Yeah. That's why there's so many different insurances. We can't take any of those.

I'm getting— I totally hear where you're coming from. It costs you $15 a lead. Like we just— the way, the way you have to grow this is like you're— it's, it's— you're making it sound special Snowflakey to you. And I think that's why it's making it confusing. But fundamentally, it's just like it cost me $15, $15 a lead. 1 out of 10 leads is going to be a qualified person who's Plan B and has a big enough wound, right? Gotcha. No, it was like, we just have to know this, this math. That's it. It cost me $15 a lead. I convert 1 out of 10 leads. So it cost me $150 to acquire a customer. Each customer is worth this on average, even though there's variability. It cost me— this is what I make on average. So do you know, do you know those 3? Like, I know you know the lead cost, but what about the other 2 numbers? What percentage of leads do you close and what the average deal size is?

Yeah, it's pretty low. I mean, we've had 5 treatments out of 1,000 leads.

That sounds bad.

Okay. Yeah.

Okay. How are you making sure? Yeah. How are you? So, so the funnel right now is that they're just opting into a PDF, right?

Yeah.

Yeah.

Okay.

Consultation call afterwards.

So it automatically takes them to a consultation call or in the PDF it says if you have these things, then do a consultation call.

So essentially, once they provide their email, their name and phone number, they receive the PDF. And then the next kind of landing page is book a consultation call for Boomcare.

Okay, so you've got name. So I'm writing this on the board. So maybe if you're watching the livestream, you can see it. All right. So you got your— you've got your opt-in thing for the PDF. Okay, cool. And then they put name, phone, and then email, right? Something like that. Yep.

Yep.

Email, whatever. And then, and then if their stuff is qualified or everyone goes and sees the scheduler?

Yeah, everyone listens to see the schedule.

And are you taking all these calls with all this trash? Yeah. Yeah, that's horrible.

Me and one other. Yeah, one and one other rep. Yeah.

Okay. And then, and then you're just running lead ads, what, nationally?

No, specific to the areas where we have providers that can provide the service.

Okay, got it.

City, state, location.

Heard. Okay. So big picture here, I think I'm going to bet that there's an ad copy issue. Like, how many people know that they have Plan B or not?

The thing is, they're also not educated to know since they can— unless they're 65 and older, they automatically have a Medicare Part B.

Well, dude, then why don't you just advertise to everyone who's over 65 and older?

I think we do.

We do do 65 and older, but they still have other insurances they can kind of opt in. But if they opt Medicare Advantage plans.

Yeah, but they all have Plan B if they're over 65, right? So they do qualify to use your stuff. Yeah.

So, but once they hit 65, they also have the option to choose other more affordable Medicare, uh, medical insurance plans. So that's where the challenge is.

So you're trying to find people who are not over 65?

Um, we are trying to find folks that are over 65, even though they qualify like automatically at 65, they do have the option to— more affordable options.

I got it. I hear you. I hear you. Let me— I hear you. So let me— I want to help because I also want— I got to make through the next, uh, the donor. Okay. So big picture right now, you're taking too many calls that are trash. There's definitely diamonds in there. And so we have to add filters to the funnel. And so the filters that we have to add is the copy itself. Now, if you say they have no idea, then we're going to have to do what are the other things that they have in common? Now, to your point, you said everybody above 65. Has this, but they have other stuff too. For me, that just sounds like a sales call. So if you know 100% of people over 65 have the thing, then to me I'm like, well then why would I focus on anyone else? 'Cause then I'm just gonna try and have the max hit rate knowing that every single person you get on the phone with can, can, can do this thing. 'Cause now all I have left is do you have a wound and are you ready to say yes? So the, if I'm you, my targeting is gonna change to 65 plus. I would also make the messaging change on the opt-in page to just reinforce that. And then you have your— Yeah. And then the application part, I would add in how big is the wound? And then that way you can score the leads. And if you, and like even with that level of lead flow, maybe that's enough filtering. If it's not enough filtering and you're still getting trash, I would then start scoring them and only showing the scheduler to the people who have wound sizes above X. Gotcha. All right? That's the first thing that I would do and think through it. All right. Appreciate you, dude. Congrats on the business. Appreciate you. No, you bet. I mean, dude, you're doing $2 million profit, $5 million top line. Like you're, I mean, you're not suffering right now. All right. But if you're being inefficient, then we have to add friction. That's fundamentally it. Like if you're sifting through too much crap, you got to add friction. Gotcha.

No, I appreciate that, Adam.

You bet. Awesome, man. Talk soon. Thanks for donating books. All right, bye.

Thank you.

Of course. Absolutely.

All right, rock and roll. We rocking and we rolling. All right, dude, I'm, I'm checking, checking boxes right now. Okay, Zach Reinders. So, uh, Zach Reinders, R2 Studios Architecture. This sounds interesting. All right, so anybody who's, uh, who's tuning in, it's, uh, I said I'll say it again later. Okay, so Zach Reinders. I'm calling the people who donated $800 as fast as I can. That's what I'm doing, just so you guys are curious. That's what I'm doing. I'm doing 5 minutes apiece. This is Zach. Zach, we've got 5 minutes on Hormozy Hotline, and I want to help you with the business. So the timer has begun.

Thank you for taking my call.

You bet, dude. The timer has begun. Okay, so talk to me. What's, uh, yeah, what are we looking at?

Okay, so I'm actually in a client meeting. I'm stepping out right now.

It's only 5 minutes. You can tell them that.

Perfect. Okay, uh, we own a local architecture firm.

Okay, so got it.

We niche down unintentionally, but it's worked to our favor.

Fine.

We only do assisted living facilities that are converting. So it's people that are taking a single-family home with 5 or less bedrooms and converting it to an assisted living facility. They need to get licensed architecture plans from the state or for the state. So that's where we came in.

Uh-huh.

Our problem is Deal. Everyone's really cheap. Well, we actually, we do 80 of those just off of referrals every year.

Okay.

So it's pretty solid where it just sustains itself by our service.

Can I, can I make a guess at what you need to do? Cause I pattern recognition, like I promise you. Okay. So you're in a, you're in a space that it's, it's super price driven, right? Cause you've got, it's construction. They're looking at cost, blah, blah, blah, blah, blah.

Right?

Yep.

Okay. You have 3 vectors of winning. You have to pick one. Ideally, you can have more than one, but one is what I like to lead with. So you either got speed, you've got risk, or you've got ease, right? And so in your business, time is money. If you can do things faster, right? There's also a risk component of like what kind of costs are going to come down the road if you do it the wrong way or do it differently. And then it's like, is there a way that we can throw some sort of verbiage or guarantees or some sort of like clawbacks that a customer can get where we say, listen, we'll put our skin in the game to make sure that we'll, you know, we'll be on time and on budget. so that you can build your thing faster so you can get faster returns on capital? Because I'm assuming these, like you quote, sell to an investor or you sell to a GC.

So they're all the, they're individual business owners. That's the hard part is we're going to small business owners. It's likely their first business, right? So they're cheap too.

Okay. I mean, who are the best, who are the best business owners that you deal with?

People that don't question the price, that understand the process.

My favorite, right?

Um, but not, yeah, exactly.

No, but it's not, it's a process.

Okay. So then what's What stops us from getting only those people or focusing almost exclusively? Like, can we get deal flow that has higher percentage of those people so we can command the prices we want? Oh, I would love that.

And part of it is I've tried to expand so that we give one faster speed, like you mentioned. So we get our plans back to you within a week.

Yeah.

So that's faster than most everyone.

Yeah.

And then we on the backend, no one understands the process, so I've learned it really well. So that's where I come in and I can give them that guidance versus just someone that's giving them a commodity of just a single plan.

Yeah.

So that's where we've been able to get our price up some, but I need to get it up higher.

So I'm wondering if you need stats, dude. I'm telling you right now, you need stats. So this is a logical sale, right? This is not an emotional, you know, thing for most of these guys, I would imagine.

Right.

This is a pure, like, dollars and cents thing. And so you need to line up and come in with that frame, which is like, listen, let's be clear here. You and I are both business people. You need to make this make sense. You know, it makes sense from a dollars and cents standpoint. They're going to say yes. It's like, cool. So there's a concept called, you know, save a dollar today, cost you 4 tomorrow, or pay 2 today and it saves you 4 tomorrow. Which one are you like, would you rather pay 2 and save 4 or pay 1 and have it cost you 4? And they're like, well, obviously the save one. It's like, right. I like to establish that. 'Cause if someone says, no, I'd rather just save as little as possible, then we all know that's not gonna work for either of us. Right? Okay, cool. So then it's like, this is where the stats come in. Like I'd look at Statista, I'd look at, I'd ask, you know, GPT. I'd be like, hey, find me all the stats of, average unforeseen costs that can occur. And so then now we took the frame of the fact that it's just going to be a logical sale. We're all dollars and cents here. But the reality is now we go fear, uncertainty, and doubt, right? So now it's like, well, these are the top 4 things that occur. This occurs in 22% of circumstances. This occurs in 15%. This occurs in 38%. Right. And these are all the different things that can go wrong. Right. And so what we've done is that we try to minimize this thing, which is going to cost you way more money than what I cost. Okay. And so now we're anchoring around all these way more expensive things. And then basically that's how we can basically nudge our way into a completely different price. Cuz we're, we've, we've, we've changed the context around the conversation.

Okay.

Would you think about any way to get recurring revenue or would you just double down on this and try to get as many people as possible?

So the only way that I would see recurring revenue in your specific business is gonna be people who do regular business. More so than like subscription, anything like that. It's more like, who are the nodes of referrals? Those are my quote, reoccurring more than recurring business. Like Coca-Cola, super amazing business, not recurring, but reoccurring. And so I put your hat on. So what you need to do is chunk up in terms of how you think through your business. I'll give you an example. So when I had Allen, which is a software company, we had, you know, the first thing we did is we went to market for small business owners. right? And that sucked because they'd be like, oh, this is great, it works for our leads, but we don't have any leads. And I was like, oh darn, that— I didn't think through that. And so then all of a sudden the people who did really well were the ones who already had agencies that were working with them generating leads. And then our thing just did the lead flow. So then all of a sudden I was like, okay, well I'm gonna go after agency owners and say, hey, we can improve the results of your, your services and decrease churn and increase, you know, like basically make more money, et cetera, using our software. And so all of a sudden what happened is instead of having, you know, trying to go onesie twosie after business owners, We just went after agency owners and I knew that, let's say a chiropractor agency comes in, he only does chiropractors. He comes in and he pays, you know, he onboards his 50 clients at a time. And I was like, oh, that was fucking great, right? And for you, it's like somebody might have a portfolio, but he onboards 50 clients. But then after that, I could rely on the fact that 10 of his people would churn every month and then he would sign 10 more up every month. Right? And so he, so our churn at the agency level was almost zero. Our churn at the SMB level was whatever the churn of the agency was, which is not really our issue. And so when we redefined our business as, oh, we're actually in the agency servicing business, not in the SMB servicing business, that's when it really started stacking. And so translating this back to you, you said you've got these referrals that are coming in, right?

Yeah, we typically get 3 to 4 referrals every week that will then try to book.

Amazing. And so then I'll bet you have a list, or hopefully you do, of all the top referrers that refer you business, right?

100%.

Right. And so then the whole, the whole paradigm around this for me is How do I, how do I partner with the referral partner so that they can frame the conversation with their introduction to me in the way that maximizes the likelihood of a close and the framing around pricing that I want?

Okay.

That's how I approach this. And so your business, if I'm thinking through this, right, like if I'm you, my business is I'm really in those centers of influence, right? Those affiliate partners, those referral partners that you have. Those are the quote customers. And so I wanna see like, what's my sales guy for those guys to get them to consistently, you know, bring me more in and how can I acquire more of them? Because each one of them is a node that over the years, if I go from having a base of 20 guys who refer me business to 200, that becomes reoccurring by nature rather than recurring.

Okay.

But still stable. Do you have a suggestion on a referral bonus for those people? Are you allowed to do kickbacks legally?

I think so.

Okay, great. Well, if you're allowed to do—

I'll double check.

Yeah, yeah. If you're able to do kickbacks legally, there's 3 different affiliate structures that I like. You'll immediately know. I'll say all 3 of them and you'll know which one's right for you. So version 1 is that you peel off some element of your particular service, a very small element, and then you allow them to sell it for whatever they want. They keep all the money and then you deliver on that as step 1 of a multi-step process. That's V1. So an example of that is, hey, uh, new business owner gets an LLC set up. We'll do the LLC setup. You can charge whatever you want for that. Let's say they sell for $300. We do the LLC setup, but then we upsell, uh, tax and bookkeeping right from there, but they keep 100% of the upfront. That's option 1. Option 2 is that they just straight up sell your thing, right? Uh, and then they get to keep whatever percentage, right? They keep— you give them 10% or 20% or whatever number makes sense for you. For them to actually just legit cradle to grave. All they got to do is just acquire the business and then just send it to you. Then you deliver. That's the second. And then the third is more of a lead gen version of this, which is kind of what you're doing right now, it sounds like. And then you can quote, give them kickbacks later. And then they basically factor it in to how much they're— every 3 referrals I send, I get 1 sale or whatever.

A lot of ours come from consultants that are on the actual application.

Dude, 100%. Then consult— like, you need to basically build out— like, think of this like you need a customer journey for the consultants.

Okay.

Like, and then that's— yes, exactly. And then they're the ones who are going to consistently be sending you business month over month over month. Okay, got it.

Yeah, thank you so much, dude.

You bet. I know you got— you got your guy. I went over 5 minutes, so I'm so sorry, uh, but hopefully you're good with it.

Thank you so much, I appreciate it, dude.

You bet. Thanks for donating, Brooks.

Yeah, absolutely.

All right, later, man. All right, you guys digging this? Is this cool? This is fun. El señor chat, I'll chat this email. Yeah, you got extra value, Albert. Super's Farm, love it. Okay, cool. Yeah, day 3, I know. Well, it's really like hours— geez, I'm gonna lose the phone— hours 10 and a half until close. All right, we're closing this thing down as a team. We started together, we're ending together. All right, starting is one, finishing is one. All right, so that was— who was that? That was Mr. Reinders. So now we're gonna go Trent Husky. Husky's Paint and Design. All right, so we're gonna talk paint and design. This will be fun. I know, we're rocking and rolling. This is great. Buy all 3 of his books. Awesome. All right, so that was— what's up, Trent? Trent, you're up, dude.

Hey, how's it going?

Good, man. All right. So we got Paint. We got 5 minutes and let's rock and roll, man. So you got— was it a $5 million top line? What did I see here? You got a Paint, Paint, Paint, Paint. Okay. $5 million top line, $500,000 profit. Yes, sir.

That's me. Yeah, that's me.

All right. Rock and roll, man.

Okay.

So what is the— like, what do you want and what's, what's holding you back? Yeah.

So I've been at this for 7 years now. I got 40 people on staff.

Congrats.

Thank you.

So my issue is I'm kind of at a at a fork in the road. I started off doing residential repaints. That was my bread and butter. I did that for years. And then I actually went to one of your conferences and you guys talking about recurring revenue. You talking about LTV to CAC. Once I saw that, I went there to learn Facebook ads was my agenda. You taught me that, completely pivoted. I was like, holy cow, I should go after GCs. Well, that was almost a year and a half ago now. So now that I double down on GCs, it's like every time I land one, it stacks. Okay. But the downside to it is, is that the gross profit is less, but the advantage of it is that the LTV to CAC is insane.

Through the roof. Yeah.

So it's like, what do I do? Because my GP on repaints is 52, but I pay a salesman 7% and it costs me another 5% marketing, that's 12%. So when you wash it, it's 40% GP to GP if you take away the CAC, you see what I'm saying? So I've been doubling down on it, but then here's the next thing is that, so since I did that, I was like, okay, I'm gonna go full force. I hired a virtual assistant. Virtual assistant who, uh, who just does my takeoffs. Yeah, I could produce way more lead, uh, I could bid way more jobs way faster. Yeah, this whole, this whole year I have 3 salesmen selling repaints. They've, they've sold about $2.8 million. I'm already at $2.6 million by myself with a takeoff guy assistant.

Yeah.

And so I'm already doubling down on it, but I just won't— I like, am I making the right decision here? Because they are way harder to produce. It's, it's the hard thing. Like, like most people get their ass kicked in new construction. They go bankrupt. Uh, the AR is crazy. My average pay per time right now is $60, 5 days, but it gets up to 90, 120. So it's very capital intensive and it's a way harder business model to run. Do you think I'm making the right decision?

Well, thank you for the context. So when you said you were getting 20 to 1, we're talking revenue or gross profit?

Gross profit.

Yeah.

So you still make way more on, on the contract, on the, on the, on the GPs. So what do you mean by that?

Will you explain to me?

No.

So you said you're going after these bigger deals because they're recurring, the GCs, the general contractors, right? Yes, sir.

Yes.

And the issue there is just that it's really just that the pay cycle is extended. So it just costs more cash for— basically you have to float cash for a period. That's the biggest problem. Okay. So there's— so I'll give you like the, the simple, the simplest answer here, and I'll tell you a story to illustrate this. So there's a company, um, that I was looking at investing in and it was a couple years back and they were at like $2 million a year and they had $4 million in debt and it was just a mess. And I ended up not doing the deal. And one of the big issues was that they had, they had bad terms for payment as a physical products business. And what they ended up doing is finding a manufacturer that gave them net 90 terms. So they basically fronted them the inventory and then give them 90 days to pay them back, which is amazing, right? It's literally the opposite situation that you're in. And the result of that is that within 18 months, they went to $5 million a month.

Holy cow.

Right. And so my point here is that there's, we could look at model. But I lean towards this, this is, this is far more likely to be a financing solution. Like we could do all sorts of crazy things, but like realistically you probably just find a 90-day rotating credit line at a bank and just show them what your financials are and what percentage of, um, deals you collect on. And like basically you just have to show them diligence that you, when, when you say, hey, I've got this, this money coming in, it's just called AR financing. And so by doing that, you can accelerate the cash flow cycle and basically eliminate that as long, obviously you gotta be responsible with it cuz you gotta pay it back when you, when you get it. But that capital tends to be very cheap because it's basically, you know, it's somewhat secured. Technically it's not secured, but it's secured by your AR.

So it's like a line of credit.

Exactly. Yes, exactly. And then that solves the cash flow issues.

Yeah, because that's, that's by far the biggest issue. Like my AR routinely sits at $500,000, $600,000.

It's crazy, right? And so if you could pull that down, you could just like, okay, great, I have this here. And then that way, and usually, usually those, those are around a percent a month. That they'll hold. And so very easily, like, you can find a percent, you know what I mean? Just like you could raise the price by a percent and get it back. Um, that's genius. Yeah, that's— I don't want to mess with anything else. It sounds like the— what you found when you came here worked, so I'm happy about that. And now you have a 20-to-1 machine. Like, when I see a 20-to-1 machine, I don't want to mess with anything about it, dude. And so the only issue you have is a cash conversion cycle issue. And because you're in a space where financing exists for this problem, I just say like, let's just go pursue that. That's the first thing I would do.

That is genius. Thank you so much. I'm telling you, because like whenever I was there, I had that epiphany and like you guys, you guys were passing around the mic and I was raising my hand.

I was like, please just tell me this is right.

And I didn't get to ask.

I was like, I'm just fucking going for it. Excuse my language.

No, you're good, man. Well, I appreciate you donating 100 books. And, you know, honestly, thank you so much for me and from the entrepreneurs that you donated books to.

Happy birthday. Thank you so much.

I really appreciate it.

You bet. Thanks, Rhett. All right, bye. Okay, now we're going— is that cool? That's exciting, right? That's kind of fun. Yeah, this like, honestly, guys, I could literally do this all day. Well, you will see. I really— I just like, I love business. It's like the only thing that I really enjoy. It's like the only thing I derive joy from. So yeah, I would do it for free. And here we are, and I'm doing it if you donate books. So Daniel Mueller, Next up, sounds German. All right, let's see what this is. Heinz Müller. All right, let's see. It's 49. I'm guessing he's German, like actually German, not just like his ethnicity, but I think his country of origin. What's up?

Are you—

are we in Germany?

Yeah, we're in Germany.

I guessed it. I guessed it. Okay, talk to me about the business. What's Heinz Müller?

Um, all right, so, um, we have 5 minutes too.

Just want to give you a heads up. We have 5 minutes just to give you a heads up. Okay, go for it.

Great, thank you.

Um, I just started a business 4 months ago, and, um, I— the first business, um, I had a little bit of, uh, like, I grew too fast.

Okay.

And, um, I had various issues.

Okay.

And, um, so now I'm, uh, I'm like wondering, um, how you could like, uh, decide, um, when to grow and like when to— when and what systems should grow first?

Yeah, yes, really good question. So first off, off the bat, I don't know what went wrong when you said you grew too fast, but my guess is that you— so one of the sayings I have is that you can't really over-expand, but you can under-talent, meaning the people that you brought in when you were quote growing too quickly were just insufficiently skilled, and as a result, things started breaking and falling through the cracks.

So, so I, I, I went to the, uh, VAM last year. Yeah. I think the issue was, uh, we were identified as like I went over, over my skis. Yeah, yeah, that's what you guys—

yeah, yeah, you basically, you were spread too thin. And you can be spread too thin because you don't have enough support from good enough teammates. And if I say anything you don't understand because I'm— I talk fast, just correct me. All right, just hold me back. But right now, the speed of your— I'll talk a little slower. So the speed of your expansion should be correlated with the speed of your ability to acquire talent. So the speed of your ability to get good people into your business to hire them. And so the reason that it felt like you were overexpanding is because you had no help.

That makes sense.

Okay. So if that's, if that was the situation, I would then look at my calendar. Basically, the follow-up question is, do you have the cash flow to pay somebody what's required to get the help you need to expand the business currently? Do you?

I do. Like, so right now I hired my first sales rep. Yeah, starting next month.

Okay.

And I'm doing 150K revenue like this month. Then I have like 25K profit.

Okay.

It's a little low.

I don't know.

Like, it's a service business.

I do like an HVAC company.

Yeah.

Specialized on heat pumps.

Yeah. Heard. So I think that especially if you're a niche, you know, service like that, niche home service especially, or commercial service, um, you probably— this is me just guessing— you're probably also a little mispriced. Um, so I'll bet that you do need to raise your prices because if you're running $150,000 top line, $22,000 bottom line, you're running what, like 13% margins or something like that, right?

Yeah, yeah, right.

And so for me, a home service business, especially if it's niche, like for me, I would say 30 is going to be where I'm like my kind of like minimum target for just, I would say, like if you were just HVAC, right? But if you're like, I specialize in heating pumps specifically, I would expand that even further to like, you could, if run well, this business could run 50% plus margins. So it's like a very competitive market in Germany because it's very like— No, I know, I know.

Subsidized.

Yes. Yeah, yeah. No, I hear you. But the, the— okay, so I'm just going to put a pause here for a second. I'll ask the original question again, which is, do you have the cash flow in order to hire the help? You said you're hiring a salesperson, right, that's coming in?

Yes.

So in order to make sure that you don't grow too fast, what you have to do is that when that new salesperson comes in, before saying, okay, now I'm going to hire the next person, we have to make sure that that salesperson becomes productive. So the, the speed of your expansion is going to be the speed of your ability to onboard and activate teammates. So just like you activate a customer, like you say, okay, they have to go through this journey and then they get a good result, they're happy. You have that journey. We basically need to think through your expansion from the employee perspective of how do I activate the employees so they don't have to think about them as much. You go from training to managing. Once they're managed and they're consistently generating revenue, for you, especially cuz it's sales, right? Then at that point I'd say, okay, now you can take your eye and then put it to the next constraint of the business. But it sounds like acquisition was, was taking a lot of your time. And so you hired the salesperson, which said, you know, that's fine. That makes sense. I would look, do you give any discounts at all? Uh, do you give discounts when you sell people?

Uh, welcome discount.

Yeah. Or anything like that.

Yeah. But, but I don't know how to use it.

No, no, I don't want you to. I was gonna say, if you don't wanna raise your price, at least eliminate your discounts. Okay, no, because literally you're at, you're at 15% margins, and if you're giving, you know, let's call it 10% discounts or 15% discounts, you're giving half your profit away. And so if you feel uncomfortable about raising the price, then what I would do is say eliminate discounts and then add speed or add, uh, risk-free. So it's like, okay, so, uh, if you buy today, we'll do it faster. If you buy today, I'll guarantee this, rather than if you buy today, you can pay less. Does that make sense?

Yeah, it makes sense.

That's what I would approach to try and get a little bit more premium, uh, on your pricing. So that— because like, dude, your, your margins are so low that even 5-10% jumps is like 60% increases in your actual take-home.

I'm kind of afraid that if I raise price, I don't sell.

Well, everyone's always afraid of that. That's why no one does it.

Yeah.

But I guess I do it now.

Yes. Again, you have to focus on, the thing is, is you only, you are afraid of raising prices because you believe that you sell a commodity. If you and someone else do what, what the prospect believes to be the same thing, then they will choose the lower one for sure. No question there. So the question is, how do we get them to not perceive them the same thing? Which is why the first chapter of The Offers book is like, it's, it's an apple and orange issue, right? You're selling a commodity. And so we have to get you to not sell a commodity, which means that we have to either add speed, you have to add ease, we have to, uh, make it more risk-free for them so that they say, okay, good, fast, and cheap, pick two. This guy is cheap and he's fast. But the thing is, is that it's not really cheap cuz you have to pay twice as much cuz I'm gonna have to fix it and that's gonna cost you way more and it's gonna take you longer. So which one do you really want?

Right?

So it's like you have to break the frame to reframe the conversation.

Got this.

Cool. And again, sometimes that frame even—

sorry, go ahead. So, so I, I raise prices and, um, then I like hire for the next constraint and I hire only hire the next person when, uh, the person I already hired is like, uh, fully on board.

Yes. All right, you nailed it.

Thank you.

No, you bet. Thank you, man. Good luck with the business. Congratulations. And you are in a niche, man. I bet, like, I'll bet you have the pricing power. I'm just telling you, man. All right. I got to jump to the next call. I appreciate you donating books, man. Thank you so much.

Thank you.

All right. Bye. All right. Dude, I'm telling you guys, pricing, like, the biggest lever by far on your ability to generate profit. It's like a 3— I think PC said this 2 days ago, Patrick Campbell. He's one of the speakers at the launch. Adam Hernandez. They did a huge meta-analysis of this. It has a 3 or 4x stronger influence on profit than any other thing you can do, which is you could keep customers longer, which is amazing. You could get more customers, also amazing. But the thing that's going to generate by far the most take-home increase, if you were to proportionally increase each of them, pricing is going to be way, way, way more. And so nailing pricing and being willing to experiment and do that with different prospects that are coming in and try new pricing structures out. Models is about monetization in general. Um, but the, uh, the bonuses, by the way, the entire profit system, which is the, the last column on our, uh, on the playbooks, which is the Fast Chat, Fast Cash playbook, the Pricing playbook, and the Price Raise playbook. Those 3 playbooks basically walk through the process of what does it look like to actually raise prices? How do you do it without fancy analytics? And then, and then there's 10, uh, optimizations of just like, how do I position this in a way that changes how they perceive the price so that it allows me to charge 50% more? right? If you're like, well, both of these are apples, it's like, yeah, of course the customer's gonna go for the cheaper apple. I would too. So would you. And so it's like, well, I need this to be a banana. And then say, okay, well, what are you really looking for? Do you need fruit or do you just need vitamin C? Because in fact, I can give you a vitamin, vitamin C IV drip, right? And then the, and it's 500 times the price. But because we're trying to figure out, do we have to sell a fruit or is it like a totally different way that we're trying to solve the problem? All right. So that's how I'm thinking through. Next one up. We've got is Daniel. We have two Daniels in a row. What do you know? Daniel Linares, DLE Event Group. Oh, events. Fun. I know something about that. I know something about events. A little bit. Run an event or two in my day. No, Raven, the playbooks won't be available later. They end in 10 hours and then they're gone. The offer's gone forever. Yes, sir. Oh, thanks, dude. I appreciate it. Thank you for donating $800. So talk to me about the event, the event business. We got 5 minutes and I want to, I want to get as much— I want to give you as much as I can.

Totally, totally. So we do a luxury kind of unique blue ocean. We're trying to dominate this category, okay, for luxury wedding entertainment. It's not live bands, it's not a live DJ, it's this kind of combination group.

Dude, I love that.

The industry is starting to know it's called a hybrid DJ band. Okay, now there's not high search volume But when we do get exact match people searching for us, a lot of times they are our right fit and we are closing, you know, people in that kind of $10,000 to $30,000 price point range.

Dude, I love it. Actually, actually, I, what you said, the hybrid DJ, whatever, that's like feature jargon. Like I, as somebody who, well, I'm not, I'm past, I can, I'm not past wedding age, sorry. But like, but like the, when you said luxury wedding entertainment, That— I mean, I'm a luxury buyer, right? That struck a chord. To be fair, though, the price sounded cheap for what it sounds— what I would imagine, because luxury to me denotes significantly more expensive. Just a side note.

True.

True. I mean, honestly, there's, you know, for the ultra 1%.

Yeah, we're the down—

we're the downsell to the ultra 1%.

Yeah.

Yeah.

There's still headroom for us to ascend.

Do you have a $100K option?

We don't.

Okay. Can we do something right now? Like right now, add a $100,000 option. Because you, if you're in the luxury space, you don't, you don't win on volume. You win on volume of dollars, right? Not volume of transactions. And so if you're, if you're doing all the work and the positioning of being luxury, then we have to capitalize on the sole benefit of luxury is that you can have super sky-high prices. And if done well, which I think you will, it's, it's, it's a Veblen good, meaning the more you raise the price for the right buyer, the more they want it, not the less they want it.

So everybody finds us, they're like, man, your brand is like the 5-star Four Seasons. You're my pre-conversion dude.

I will bet you right now that you're like— this is, this is not a promise to anyone who's watching or listening, but if I were to bet, I would bet that if you were to double or maybe even triple your prices, you will close at a higher percentage. Because $10,000 to $30,000 doesn't sound luxury to me, man. I wouldn't even believe it. It's incongruent with the messaging.

I mean, the, the, the luxury people, they're, you know, $300K, $500K flowers.

That's what I'm saying. Like, you're like, dude, the, and so, I mean, my, if I'm you, right? My sales pitch, and do you have a VSL before you talk to these people?

I just made one.

Okay, great.

That's a pre-follow-up to, to our Zoom call.

Yes.

And now we'll have a, here's our stuff.

Are you running ads?

Only Google Ads, a 4, a 7x return on ad spend, but we're not doing anything on, on social yet.

Amazing. Is it a, is it a pure opt-in? Yep.

Request a quote after they've dabbled on our site. Pure opt-in.

Um, okay, dude. So let me, let me just, let me just, I'm gonna cut through, like, let me just, let me, let me love you. Okay. So this is what, this is what I would, if I'm you, if I had to transport brains and like this, I have to take over the business tomorrow. The opt-in would not be request for quote. That's like the lowest converting thing that you can do. All right. Instead, I would have it be a questionnaire about the wedding. Right. So, and it make it seem like it's like, oh, that way we can tell you the exact perfect type of What's the best, you know, entertainment experience for a luxury wedding that would match your style wedding? Blah, blah, blah, blah, blah, right? So they answer 5, 6, 7 questions, whatever. Then on the thank you page, they either, if they have a budget that's high enough, they get shifted straight to the calendar where they can have the call. Or if they're not, then you just send them to PDF or something like that, right? So if they are qualified, they go to the call. Okay, now, if at that point you have the booking, then you nurture them by sending them the VSL before the call, and then you put a secret word in there. That says, hey, would you rather us watch it together? Would you rather watch it on your own? All right, everybody's gonna say, I'd rather watch it on my own, which is great, but now they committed to watching it, which is the point. And if for some reason they forget to watch it, then you've already set the seed so that you're like, oh, did you get a chance to watch the thing? Which, if you put a secret word inside of it saying, hey, by the way, just so we're prepared, tell us the headcount of your wedding, just text the person who texted you this back. And so you should get numbers that are like 50, 195, whatever. But then that way you know they actually watched watched it, right? And so then when you hop on the call, you reconfirm they watched it. And then the first however many minutes, if they didn't, you say, hey, no worries, I'm gonna grab a coffee, go watch this video, and then you'll pick back up, right? Just as an easy way to make sure that every single person is pre-framed properly for the call. Now, the contents of that VSL, I know you already filmed it, but the concept of the VSL, the way I would think about it would be how basically I wanna break frame here. It's just like, okay, so what do you think people remember the most about the wedding, right? And again, I would look at statistics, I'd look at surveys, I would do whatever I could to try and have like, the thing that people remember the most is this, the thing that people spend the most on is this. And so no one remembers where they had chicken or steak. No one. But what they do remember is how good of a time it was. That's where memories are made. And so we should be spending our money in proportion to the memorability or basically the memory contribution size of each dollar, right? And so this would be the frame that I would enter the conversation with. And so if they're spending $500,000 on flowers, no one remembers the flowers. Everyone will remember what the entertainment was.

It's really good, man.

That's the frame. And then you can start selling $100,000, $150,000. Dude, you're luxury. Like, we're luxury. Let's go luxe, right? Let's make— let's feel it.

And just continue to be messaging-wise, you know, more and more unique as, as we do it.

Yes. And so I would, again, I mean, I said put a $100K offer up there, but like $100K I think is probably where you is going to become your bread and butter. Just being real. Like, you need a $250,000. Like, dude, if you're luxury, luxury weddings. You've got a bridezilla and dad's paying and he's a, you know, a hedge fund manager. He doesn't give a fuck.

Damn, Dan, mind blown, brother.

Yeah, as a luxury consumer, like, let me tell you, they will spend. They just want the best. And right now your prices actually, I honestly think, are hurting you. $10K for a wedding is like the napkins.

We get so many people that don't flinch, right?

And right, what's your close rate? Yeah, what's your closure right now?

Um, close rate, you know, we, we meet with 10, we probably close, I think, like 20% out. It's only about 20% close rate of booked calls.

Yeah, of booked calls. Okay, well, how many of those would you say you cancel because they're just not qualified?

They cancel themselves. Okay, our automation shows them our pricing in advance. Yeah, they'll set up a meeting and then they'll cancel it.

It's like, oh shit.

Yeah, that's the thing.

So What I started with, like, that's where we have the question flow rather than, you know, request an invoice. It's like, no, like, take our perfect entertainment quiz, perfect match entertainment quiz. They go through it and then it automatically sorts them so they don't even see your calendar. You don't have to waste your time with it, right?

Filter them out.

Yes, yes, yes. What percentage of the calls that you take do you close? Not of call, not of scheduled.

How many do we take that are actually like— you mean our show up rate?

Yeah. Well, yeah, showed calls that you make an offer to. Of the offered people, what percentage close?

Of the offered people, what percentage close? Probably 20 to 25%. About 25%.

Oh, so the vast majority don't cancel their call.

They don't. We got a 90% show of the people that— yeah, you know, that, yeah, you know, get on our calendar.

So the way that I framed it is what that needs to be reflected in that VSL. It needs to be reinforced at the beginning of the call. You should be anchoring around 255 $500,000 expenses, so that when you say your price, it'll seem like way better. And I think that you start with $100K and you really do like go for the $100K. And if you want— so obviously you just got a bunch of books, but the anchor upsell, which is the— in the upsell attraction mechanisms, the way to really, really juice it, if you want to get nasty with it, is that you present the $100K offer. All right, that's now your new offer. Okay, just— I don't want you to like wrap your head around that. $100K is the offer, but your core offer right now, which is your $30K, right? Let's make it $35K because that's the same thing anyways. So make it $35K. But what you're going to do is you're going to look at the $100K and you're going to say, of these things, what one thing is just really specific that most people don't particularly need except for somebody who's a super baller, but everyone else is really happy with 9 out of these 10 things? And so what you do is you have the $100K thing, and then some people just say, yeah, I want the best thing done. They don't even care anything. They just say yes at $100K. If they say no, then you say, oh, you know what? Well, do you care a lot about where the DJ was born? I'm just giving it a stupid example. But they're like, oh no, I don't care about where the DJ was born. And you're like, oh, well we have this other thing that's $35,000. 'Cause some people really care about that. But if you don't care about that, then this is $35,000 and it gets, I think, a lot of things that you wanted. And they're like, oh yeah, because when you do an anchor upsell properly, right? The first thing is like you want to get the whales and you want, you gotta commit to it. You can't just like toss it up and then be like, oh, you don't want that. And then start selling the other thing. You have to truly sell $100K. You gotta commit and they have to really consider it. Otherwise anchors don't work. If they really consider it, then they're already starting to justify why it would be worth $100,000. And then when you just say, cool, well this thing's 90% similar and it's one-third the price. Then they're like, oh, done. Yeah, yeah. And so now all of a sudden everybody's buying your most expensive one, at your current most expensive one, and maybe 10% or 20% buy your $100K. And if I'm right, 30% are buying your $100K. And just by doing that, we doubled LTV.

Thank you, brother. I know you spent some extra time with me, man.

You're good. I want to help.

Happy birthday, man.

Congrats with everything.

Well, I appreciate you. If I make you more money, you donate more books, you help more people, we save the world, everybody's happy.

Yeah, brother, thank you so much.

You bet, man. All right, good luck. All right, all right, that was fun, right? I know that was, uh, more than, uh— oh, we gotta— we gotta— oh, we hit out— we hit a milestone. Okay, uh, 3.28, so we just hit a milestone. Oh geez. All right, let's, uh, let's rock and roll. Sweet. Okay, so I got a call. Okay, so who am I Who do I— who's hooking me up with a number? Adam, are you sending me numbers? We'll do it in a second. Okay, I'll call one more and then we're calling single book buyers. All right, um, hold on. So I'm gonna call one— I'm gonna call an $800 buyer who's coming in. All right, Ed, text me another $800 buyer. All right, Hamza Solomon. Okay, so you just— you got $800. Books, and so I'm going to help you make more money. Not a promise, of course. Your results will vary. Uh, results are not typical. Hello, Hamza. We got, we got 5 minutes, brother. Talk to me. What's, uh, you're the dentist, you're doing $9 million top line, $3 million in profit, right?

That's right, that's right.

All right, $9 million, $3 million bottom. Okay.

That's correct. So I just want to say happy birthday, brother.

Thanks, man.

Congratulations on the biggest and wildest book launch in the world, everything. Uh, I took the advice you gave to me last year in Vegas. We were doing around, I think, a million and a half. Uh, and then the advice you gave me was just to do more, more, more of the same. And we ended up here at 9.4.

So you went from 1.5 million to 9.4 million. From some advice. That sounds like it was a good return.

Yeah, and I remember what you said to me, you need to more and spend more time in the day doing ads, uh, get more creative.

Yeah, yeah, yeah, I remember, I remember, I remember, I remember. Yeah, yeah, yeah, yeah.

So that's, that's— anyway, um, so ever since then I've just, I've been watching every single moment, every little piece I could get from you, because this moment here now is where I want to understand exactly how do we take it to the, to the next level.

Okay.

How do we dominate the UK dental market? Because we're hungry, we're all locked in, in the team. Yeah, everyone motivated and got good momentum.

It's going to come down to stick. I'm going to tell you right now, it's going to come down to stick.

Okay.

Okay.

Like, you, you figured out the first part, which is why you, you know, you just 7x or whatever the number is, 6x, right? You 6x in a year following the Do More advice, and you still need to keep doing that volume. I want to be clear. But the thing is, is that like really tremendously large businesses get really, really big 95% of the time because of one thing, which is that they have— well, not 95, 100% of the time they have one thing, which is a compounding vehicle. So they have something that compounds onto itself. And so virality, for example, is compounding, right? And so brand itself is a compounding vehicle. Media, because people tell other people who tell other people who tell other people, and then that's how a brand compounds. So that's one way. Now, given the nature of your business, you're not gonna have a viral I don't think, right? You know, I don't think you're going to be like the— I'll just leave it there. The main— yeah, your B2B high-ticket service, like that's not the— that's not your game. Um, but the key is going to be how do we make sure that dentists never leave? That is now your mission. Because if you did, uh, whatever, $9 million in sales this year, because you were at $1.5 last year, right? So you pretty much did almost all that growth this year, right? So the key is if over the next 5 years you did no more acquisition but every year you do $10 million a year in sales, right? It's just that next year you're at $20, and then the year after that you're at $30, and the year after that you're at $40, and your margin is disproportionately growing because you don't have a huge amount of, uh, of OpEx. That, that's the game we need to get to now. That's your next level.

How would you do that, Alex? Because right now I, I'm getting— I can see the pressure on the sales team. Yeah, I can see kind of not listening in a way as well. And it's hard to, I guess, manage the sales team when there's more ad spend. Uh, I wanna spend more. I wanna spend—

well, I don't think the answer is spend more right now. The answer was spend more when you came. That was the answer. Right now the answer is not spend more. The answer right now is you have to keep, you have to keep the people you're selling. You have to keep delivering on them. You have to keep them happy. You have to reduce churn.

Anik, at what point do we, do I know that it's a sign now to move into a different location and then aggressively scale locations and as a dental group? Like, that's also something on my mind, which I don't want to ask.

Wait, is this out of four walls right now that you got the 9 million?

Yeah.

Oh, badass. No. Okay.

Yeah.

We've got one more room available.

Okay. Heard, heard, heard. No, I think you're actually, now that I understand that last piece. Yeah. You're ready to open a second location using the same model.

No, you're good.

Okay. Keep doing that.

I'm glad, I'm glad, glad we got there. So, so we still, we have, uh, we have 55 seconds to spare, but that, that's what, yeah, sorry. I, um, I misunderstood. Yes, 100%. 4 walls. You need to add another 4 walls. I'd go across town so that you don't, you have as little crossover as possible with the ads. Um, and the thing that you have to be careful of is backfilling the the talent, uh, who's required to, you know, start, you know, pop off that, that next one.

And with the sales team, just to go back there, how do I get a solid sales team here to handle inquiries and make sure no jewelry doesn't go through the roof? Because that's what I'm—

well, dude, you just got— so follow the, the Lead Nurture, the Lead Nurture, uh, playbook that's coming in the mail, right? Like, literally follow that to a T, number one, before you do anything. That's number one. And then from a closing perspective, one of the key parts, and this for everyone who's watching too, is that the more I've studied sales, I feel like it's like the Midwit meme. I don't know if you've seen that. It's like, you know, really, you know, just, just ask more times and, you know, no, don't, don't bother them. And then at the end, you know, then there's all these like tone and pacing and blah, blah, blah. And then at the end it's just like, just ask more times and don't bother people. That's really what it comes down to. And so basically we need to have a very straightforward script that anybody can learn. And so it's how can we decrease the complexity? Of the sale, remove as many variables as possible so that there's— so it's easier to onboard and train reps and grade them because the more complexity is, the longer it takes to train them, the longer it takes to onboard them, then the harder it is to basically manage their performance. When it's like you have 5 questions to ask and you ask them in this way and you ask them in this order, it makes it significantly easier for somebody who's not as skilled to still succeed. And that makes a better business model rather than have a business that requires exceptional salespeople to succeed.

Thank God.

Okay. But in terms of how do you find salespeople, like it's the same for every business. You're gonna have to recruit hard. Uh, and you wanna think about your acquisition channel, uh, for getting, uh, salespeople the same as you think about your acquisition channel for getting customers. Same concept. You're gonna advertise, you're gonna have an offer, you're gonna work the leads, you're gonna interview just like a sale. Same, same. It's just that that is now becoming the constraint of the business is that you need more salespeople so that you can open the next location, which then can, you know, double the business or whatever.

Amazing. Okay, I got it.

Yeah, follow.

TikTok. TikTok. What?

Layla just walked in. No, I think the— it's more that you want to demonstrate that you've done some level of personalization for the prospect that makes them want to get that value. So it's less about bribing them like the term itself. It's more like, what does someone like that really want? It might be something that gets them out of pain or something that absolutely guarantees that this is going to actually solve it for them. But we want to show that. Okay, I appreciate you, man. Congratulations on your 6x this year.

Thank you.

Thank you.

All right, you bet. All right, bye. All right, we have the great, the great Layla, the one, the, the myth, the legend. Legend, actually, legend is way better. The legendary Layla. The legendary Layla is in the house. And so we're doing— so this is our special edition because we just hit—

we're just gonna call single book buyers.

That's one. Yeah, right. That's the— that's the— we just hit the milestone. Okay.

Yes.

So we're calling single book buyers. Okay. So do we have a— am I getting— am I getting some?

Yes. So they texted to you.

Oh, there we go. Okay, great.

There we go.

So Brandon Spry, you're watching. We're calling. We'll see, Brandon. You just bought a book. And so that was— we hit this milestone. And so we're We're going. Brandon, we're on the live.

Hi, Brandon.

You bought a book. You donated a book. Thank you.

We appreciate you.

Yeah.

Oh my God, I was just watching the live.

Did you stop watching?

Seconds ago.

Seconds ago?

Oh, I lost you. I lost you on the dentist. That's That's what did it.

Yeah.

That's just—

well, if you want proof, you just want to open—

or ask them to open a new location. Yeah. Oh yeah, there you go.

No, I love it. Oh my gosh, well, really great to meet you, man.

Well, appreciate it. How can we help? We got a minute or two, let's do it.

How can we help?

Yeah, let's do it.

Um, so I'm a closer.

I'm gonna bore you with that, but I'm really trying to help.

I work for an offer right now and their show rate is terrible and, uh, Really great.

It's honestly the best offer I've ever worked for. Well, you haven't worked for us, so—

Dude, you know, I just had a group reach out to me.

It was like, hey, Kormos is looking for a closer.

And I was like, I don't really trust you.

I feel like they do it themselves, right?

That's actually correct.

Yeah. Yeah.

You know how it is.

Yeah, I do. This offer is great.

They scale plumbers and they're so good and I just have so much conviction.

For her offer.

Yeah, um, our close rate is great, but I mean, you obviously have closed way more than me, and you know that if the close rate is too high, there's a problem.

Yeah.

Um, and part of that is our close— or excuse me, our show rate is 20%, and, uh, our close rate is insane.

So, you know, we get 3 calls a week and we'll close 2 out of 3. We'll get, uh, 5 calls a week, we'll close 3 out of 5 or 4 to 5. Yeah, you mean they actually pick up, is that what you're saying? Scheduled. Yes, exactly. And, uh, yeah, couple things.

And I'm an amateur.

No, you're good, dude. You're good. So there's, there's probably a handful of issues that are actually happening prior to. So like sometimes it's an uphill battle. Like if you're like, dude, I'm calling the lead immediately, I'm, you know, I'm, I'm calling him 10 times, you know, within the first 3 days, and I'm calling him twice in the first 5 minutes, like you're doing all the like the fundamental fundamentals, like the basics, right? If you're doing that stuff and you're still not seeing increases in, in show rates, then it's usually things that are happening prior to the scheduling.

Okay.

So that means— Exactly right. So basically there's not— there's insufficient friction likely in the funnel. And so as a result, it basically— if you remove too much friction, then what ends up happening is that like it's so easy to book a call that you actually have fewer total shows. And so your metrics, It's kind of getting into the vanity metrics game of like, look, we got 100 calls scheduled. It's like, dude, it doesn't matter. Like, we only care who shows, right? And so being willing to say, well, we doubled our cost per booking, but our show rate, because you're at 20%, it's like our show rate went from 20% to 60%. So we tripled our show rate, but we doubled our cost, which is still a 50% increase, right? Yeah.

Okay.

So I would look at the application, number one. I would also look at like, so is it, is it just, is it just straight to booking Or how's the— I can't see the funnel, but like, is that the— like, how's it working? No, I can't see it.

I mean, the funnel's changed too much in the last couple months. So at the exact moment, funnel is for an offer or promotion we're running. And then it's also just like, hey, if you want to scale up, book a call. And then it's very basic info, you know, name, email, how many people are working in your company, what's your revenue, and then it's like, that just goes straight to, hey, don't miss your call. And it's basically a 10-second video of the owner going, hey, this is, this changed my life.

And that's why.

Oh, that's the, and that's the VSL. Yeah, basically. No, no, no. Did you need, no, you need like a 5 or 7-minute VSL. Uh, so the proof checklist, uh, which is tell your owner to go buy that, but, uh, donate some books by the end of the day. Uh, but the proof checklist basically help you script out the VSL because we have to Right now, like, the symptoms you're expressing are things that are— I mean, all of this is in the sales system. So you've got the lead nurture process and you've got the proof checklist. Both of those things are the things that are missing, which is why you're having so few show rates, or the show rate's so low. The fact that you're closing is great, but I would bet you that if you put in that, basically more proof on the funnel and the VSL itself, which typically the way it's gonna be is gonna have proof, promise, plan right at the beginning of the VSL. Like, you know, how do you know we're good? What are— sorry, like, what's the promise? What's the plan of how we're going to help you do it? And then what's proof that I know that you're legit? And then we walk through the 4-step belief breaking, which is like, okay, what are the 4 things that people struggle with or like why they, why they object? Right. And so it's like belief 1, 2, 3, 4. And then we order this and you'll be able to watch this livestream later. So I'll just talk fast. So, so it's what they believe, why they're wrong, what's right. And then proof. All right. And then that stack of that 4 steps you do 4 times. So it's basically 16 pieces to that via cell. And then you see at the end, whichever, whatever the next step is, which is like, hey, text us back, you know, this thing. And then when that person texts you, right, then what we want to do is personalize the roadmap that we're going to show them so that they're like, oh, they actually did some work for me ahead of time, right? It's just like, I mean, just like plumbing. It's like, oh, we actually, you know, I looked, I pulled up Google Maps and it looks like, you know, your home was built in 1971. They were usually using these types of pipes at that point. And so I'm going to bring the stuff that's actually going to be able to fix this. I might be able to do this even faster for you. They're like, oh wow, that was impressive. So like now the question of you not showing up or like I'm using a home services example, but like the question like vanishes, right? So like, oh wow, they like really understand my business. And so I would, if I were you, the salesman, we have to install those two playbooks. But in addition to that, I would, if I'm you, I would basically do little mini AI research Zapier or Make.com automation, whatever, to get a full breakdown of that business, the reviews they have, what people say, you know, some of the employees at the business like that. Like imagine like, hey, so I know Tom and Gerald work for you. Do you have any issues with— they're like, holy shit. Like it's like you want to blow them away. But with automation and AI now, you like, you can do that really, really well. All right. I got to call the next person. Okay. Bye. I got that. Help. All right, man. Nice to meet you, too. Appreciate you.

You.

Yeah, cheers.

All right, bye.

TikTok. TikTok.

I know, I know, I get, I get, I get carried away.

Got to call these buyers.

Yeah, yeah, my bad.

Some special numbers that I've been given as well.

You want to— or you want to tell me what it is?

Come on, Ed, I need that special number.

I'll call Santiago first, and then we call this special number. Okay, Santiago, what have we got?

Call them instead.

I don't even know what that means.

Like, wouldn't it be funny to be prank called by yourself? What?

Yeah.

You didn't do that in like high school?

No, I didn't. I didn't.

So lame.

Your call has been forwarded to—

Ooh, tough one, Santiago. Why don't you leave a voice memo? Oh, well, it's gone now.

That's so rude.

He doesn't know.

Leave a voice memo.

The opportunity of a lifetime just passed him by.

Okay, well, I'll leave a voicemail.

Fine, you leave a voicemail. Hello? Uh, Nathan? Yeah. What's up, dude? You're on Hermosia Hotline.

What's up?

How's it going?

It's going good. All right, rock and roll. We have like 2 minutes because I'm calling people who bought books, so we're doing it right now. How can we help? Um, right now I am a sales manager for— oh, that's crazy. I'm a sales manager for a proactive maintenance company. We are launching a new soft software with sensor capabilities and an AI platform. And yeah, just was buying the book to see how we can enhance, yeah, enhance that among all your other books. And yeah, just trying to upgrade my career and sell some stuff.

60 seconds to ask a question, Nathan.

Yeah, that's pretty much it. Well, I mean, I can just say thank you. Yeah, yeah, honestly, yeah, this is a crazy honor. I'm like a huge fan of yours, dude, and, um, yeah, I just love your stuff. Well, I'm a huge fan of yours for, uh, for putting in the work, man, chopping wood.

Yeah, we appreciate you. Thanks for supporting and buying a book.

Yeah, absolutely. My pleasure, guys. I appreciate it. You bet, man.

Well, hey, have a good Monday.

Thanks. All right, later. All right, bye. I always like wave at the phone. That's my own thing.

That's old man.

Do it, old man Mosey. Okay, do you want to, uh, do you have a special number?

I'm waiting on a couple of them, so let's go. Alex.

Alex. Oh, there's not enough room in this livestream for more than one of us. Not enough room in this livestream.

Do not hang up.

Oh, you want to leave that? Okay. Layla's going to prank call. Can you imagine this? Dude, do you guys remember when I know Varun?

Hot or Not. You remember that?

Dude, what did you do growing up? I went to— to be fair, I went to all-guy school, so like Hot or Not was not really a thing.

Alex Miller with Lumps Denver.

Sorry I missed your call.

Feel free to shoot me a text and I'll get back to you as soon as possible.

Tough, tough, Alex. But this is Layla and Alex from Mosey.

What's up?

Saying hi from Mosey Hotline, but you missed the call, so I said we have to leave you a voicemail.

I feel like this is so— it's worse than not getting a call. Like, I feel like getting a voicemail, it's like, it's worse than just not getting a call.

I don't think so.

God, it's terrifying. Well, Alex, thank you for grabbing a book, and we wish you all of the, all the fortune that comes from everything.

Thanks for supporting.

Yeah, appreciate you. All right.

Okay.

How awkward was that?

I don't think that was that awkward. I don't think that was awkward at all. I thought that was friendly. All right, do we have another one?

I don't know, it's taking this number so long.

All right, fine. All right, well, I'm gonna call the next one. What?

Okay.

I'm gonna call this one.

Yeah.

All right.

We don't even know who it is.

Carlos.

Hi, this is Carlos Rodriguez. Please leave your name and message.

Wow.

What should we say? Leave him something inspiring.

Something inspiring.

Leave no doubt.

Be one of zero. This was from Rosie Hotline, and we missed you because you just grabbed the book, and you're probably on the livestream, and I don't know, you missed it, but we love you, and we appreciate you supporting.

You love him?

Well, I think— calm down. Jeez, Jake, come on, get out of here.

No, no, no, one second, sorry.

Dude, you saved by the bell, dude.

I was—

my finger was hovering over that hangup. All right, dude, how can we help, man? Okay, so who, what, when, or why?

Um, who?

I'm Carlos Rodriguez, Stanford PhD research student. What do we do? Um, I make medicine, so I'm working on creating new treatments for leukemia, trying to get rid of chemotherapy. UV and radiation to help treat people with blood cancer.

Cool.

The problem that I'm having is that we're having a hard time getting funding, right? Uh, recent budget cuts, a lot of funding is missing. It's been harder for people to get funding.

Sure.

Um, we just recently submitted one thing, uh, which I think has a pretty high probability of getting us, you know, $100K, $200K over the next year or two, which isn't really enough to cover— yeah, the 3 staff that we Okay, um, so I'm looking to you seeing if we can come up with more creative ways of getting this funding, um, research funded, because we have some really exciting results that we can do bone marrow transplant without chemotherapy or radiation in mice. But we—

well, how much you need to accelerate this?

We need money.

How much?

I'm thinking $2 million would get us to the finish line in monkey studies. You know, by the end of this year, possibly middle of next year.

Got it. So how big is the average grants? Like how many do you just normally get? One grant or multiple grants?

We normally apply to, you know, 3 or 4 grants. On the high end, they can be $10 million. So you get that, you know, once every decade or, you know, the more sustainable version is one grant every, every year or two. And that keeps the lab running and helps pay for the staff.

Yeah.

Heard.

So my thinking process is that this is— I mean, believe it or not, this works the exact same way as like closing a deal, you know what I mean? And so I think to me, I would hear this and I know, Lele, you can jump in, but like insufficient volume of like, okay, we're applying to 3 or 4. It's like, how do we apply to like 300? Like, I try to solve that question. Like, what would it take to guarantee that this doesn't fail? And I just, I do that. I know that sounds incredibly violent, but hopefully this launch was like a little example that I try to walk that talk. Like, I just like, I just say like, how can we max— maximize the likelihood of success? Right.

There's only so much that you can write or rewrite yourself.

Yeah.

There's all these AI detection tools. So you have this body of work that you've written. Yeah. I want to use AI to say, hey, take some of the points that I've already written and help adapt it to this thing. But then you don't want it to get flagged by a I don't know, the AI checker on the other side.

Okay. But I mean, you said you only applied to 3 or 4. Like, could you do like 30 or 40? Um, because the alternative is that you lose the research, right? What was that? Well, the alternative is you lose the research, right? Is that it stops, right? So to me it's like life or death, right? It's existential, right? So to me it's like, all right, well then like, what, like again, what would it take? Yeah, like, yeah, we pull out all the stops. If it's like this or die, then it's this, right?

Well, I guess we don't— we have maybe a year of funding left, maybe less. So yeah, no, it's do or die now, right? I guess shifting, shifting everybody's focus from the research that we do, you know, we have a body of research and results, but it's going to go to waste unless you get the grant.

It's going to go to waste unless you get the grant. So like the constraint of the system is cash flow, and the way to solve that is through through volume of outreach in order to— volume of applications, literally, to get grants.

Are there other perhaps creative strategies? I don't know, crowdsourcing funding for research?

Yeah, there totally is. I would just say, what's the— like, I, I always operate from find the highest likelihood path and then make it unreasonable that we wouldn't succeed by doing so much volume on the highest likelihood path. And so if you already know how to do grants and you've done multiple of them in order to get grant money, then I would say, well, If we 10x the amount of volume, the likelihood that we, you know, are successful. So let me ask this differently. If you were to do 30 grant applications, what do you think the likelihood, if all 30 were good, that you'd get the funding you need?

Um, I'd say pretty good.

All right, well, to me it's like I don't even have another question. Like, to me it's like it's just the time it would take to—

yeah, the time it would take to figure out a different strategy, it's just the same as a business It's like, all right, we want to figure out a new funnel right now. It's like, no, we want to just see ruthlessly pursue making the old one work.

Okay.

That's it, man. It's just ruthless volume.

And so, hey, we got to try a little bit harder.

Well, if it's like, if it's like, oh, the team, it's like, well, we can't stop the research. It's like, well, the research is going to stop no matter what unless this gets solved.

Right.

So like, that's that. But all right, dude, I appreciate you. Thank you for grabbing a book.

Yeah, and also just to respect what you're doing.

Yeah, respect what you're doing, man. Thanks for saving lives. All right, have a good one. All right, too. Bye. All right, all right.

Wow, so discreet.

All right, we're doing— so, uh, all right, Santiago, Santiago Ramirez. I know Tyler Mars, that's the— just, just popped up. All right, Tyler Mars, it's you. You're up. The number you have dialed has calling restrictions.

That is—

Tyler, you didn't use the caller— caller— oh, fine, go for it.

I got one, I got one.

Okay, these are hot, hot dials. The weather is hot. What? What?

I just decided to call.

Oh, well, there you go. Well, now you— no, you don't— there's no overhead mic, you're good. Or overhead, um, thing. Cameron. Cameron.

What's up, man?

How do you— who, who, who are you? How do you know who this is?

Oh, I'd say we've known each other since we were probably 3 or 4.

Cameron, what's up, dude?

What's up, man?

How you doing?

Hey, Cameron, what's up, man? You ass. Okay, so, well, you're on our Mosey Hotline. How's the physical? Well, how's your new baby, man? You got, you got Oh, good, good.

Yeah, she's, she's doing great, man. Having two girls is, is a wild ride.

All right, Alex knows what that's like, having two girls. Well, you know, anyways, it was before Layla.

Um, we're running on fumes here, Cameron.

Okay, okay, talk to me.

I mean, I've got to be riding on I don't even drink caffeine.

Well, I just downed a whole— anyways, so tell me about the business, man. What can I do? So physical therapy, are you guys are online? Uh, what, what, yeah. What do you, tell me what you're doing right now.

Uh, so, uh, yeah, we had started as online. We moved into two sublease brick and mortar spaces.

Okay.

I've been doing concierge mobile stuff. Concierge mobile had like a good margin, but it just was really hard to grow with that because just travel time and everything. So just advertise the brick and mortar.

Yeah.

Um, my wife Lindsay, she's been crushing it.

Yeah.

Um, where we kind of hit a snag was we had— we made a hire last year in September, hired a PT.

Okay.

Started off okay, and then just when Lindsay came out from maternity leave, yeah, found out our PT just like tanked. And so we just separated with our PT this past week.

Got it.

Um, so our margins had like way, way, way, way, way down.

Yeah.

But now we've been building back up, so we're getting back to where we were with revenue.

Okay.

And then I'm going to step in while we're looking to bring in 2 PTs.

Okay. And this is brick and mortar, right? Yeah. Yeah, I got it. Okay. So what are you doing for lead gen?

So we do meta ads, so Facebook, Instagram ads.

Okay.

I'd say about 60% of our Lead generation is word of mouth, either through our patient base or through like, um, yeah, referral contacts.

Yeah, heard. So, but 40% comes from ads. So I mean, right now the limiter to grow, like how, how much more, how many more patients can you take before you're at full capacity at the location?

That is the problem is that we have these two subleases that just darn don't really allow for us to grow. And so like it's been kind of stuck in this cash, cash flow problem where it's like I'm not able to generate enough to move out of this.

And so I wonder, I wonder if you have a pricing issue. Yeah.

So we increased our price 4 times over the past year and a half.

Love this for us.

And so our, yeah, our, so our single visit rate is $279. So, and then we offer most of our— we try to not sell one-offs. So we do packages.

Yeah.

We have two different ones that we sell.

Okay. What's the price point? Yeah.

The low one is $239 a visit and the— sorry, $219 a visit. And the other one's $239.

And you're selling them as bundles though. You're selling them as solutions, right?

It's a plan. I mean, we're not marketing it that way. We market it as the plan of care, but I mean, yes.

Yeah. So they come in, you're like, it's going to take 12 sessions, so it's going to be $2,400 or whatever, right?

Okay.

Got it. Do you have CareCredit?

We do not.

I would set that up.

We do have financing options.

I just haven't been using it. Okay. Well, I mean, if you do, typically you'll get a 30% lift in revenue when you have like a good financing partner. That happens kind of across the board, especially if you're in high-ticket stuff like yours is. And yours is something that there's there's plenty of lending partners that do stuff for health. You know, I mean, since you're in a— you are, you know, a doctor. So like if you have the option, which you do, I would use it. And if you're not— if you're like— if no one's even needing it, then to me you still probably have some room to increase price because if you're like you're struggling with cash flow, which I'm not entirely like. So you've got these— you have multiple locations right now that are subleased.

Yeah. So because Lindsay's in public health, that niche. So we're We're the two places we sublease are multi-provider practice areas. So it's birth specialty workers.

Yeah.

So that's where we get like a shit ton of our referrals from.

And, um, why not specialize in that? What was that? Why not specialize in that? Because I feel like it's got to be okay.

I'm, I'm so the only reason I'm even going back into treat is just to like bump our cash flow up.

Okay. So you got to do what you got to do. Okay.

Right. Yeah, it's not like, well, we'll put one in closer.

Okay.

But yeah, it's just so we can get somebody, so I can get a little bit of cash so I can bring someone back in.

Okay.

Yeah, we were just like getting crushed by the lack of production by our PT and the overhead was killing us.

Okay, so basically you just need to drive more cash flow, but is the ultimate escape path like waiting till these subleases go out or like what?

I mean, I'm not locked into them at the end of this month. I'm technically out of my— like, they go to month to month.

Yeah, whatever.

Okay, well, that sounds nice. But you said she's doing well online, right?

She— I mean, so I would say the vast majority of the demand is for in-person.

Okay, good to know. All right. Even from like your Instagram stuff?

Yeah, I mean, we haven't been pushing the online stuff. I can, I definitely can.

You said she's in pelvic health, like pelvic floor therapist?

Yep.

Yeah, she's a pelvic floor PT.

Yeah, that's why it's in person.

It's, it's a little tough online.

Yeah, okay, heard. Got it.

Well, it's not—

okay, so, so fundamentally we just need to make more money, and the way to do that is that we have to get more people in, add financing, raise prices. Do you have any kind of VSL that people watch prior to, uh, to coming in?

No, but one of the guys in the mastermind I'm in.

Yeah.

Sent me his, like, his nurture sequence. Yeah. It's like a clinic tour and like, welcome. So I'm going to, I'm going to mimic that and then build it into ours.

Yeah. Well, like that, like right now you, you're selling $2K+ packages and you're doing it without a VSL and without financing, which means that you probably still have room to go up price-wise.

Yeah, and Lindsay's close rate's 95%.

Yeah, right.

I mean, it's good.

So you've got to— like, the people who are coming in for that are in screaming hot pain, from what I understand, um, and they just had like a traumatic event, or they're about to, you know. Um, I would, I would like— I would raise the price, man. If cash is like— if you're closing 95% and you don't even have like all the sales stuff in place for like the right sales motion, then you probably have have at least a double in that.

So yesterday you were doing one of these calls and like, you, I forget who you were talking to, but you said something that was like really intriguing to me.

Okay.

It was a little bit different from model. The guy was like doing SaaS stuff.

Yeah.

You know, uh, one thing that he talked about was that we had like a, you know, a premier program up front and it was like a really short, like, yeah, 8 weeks, something.

Yeah.

And then it was like, cause like right now for me, our biggest problem is I don't think we have or not our biggest, but a big problem is we don't have like strong monthly recurring. So I think it would be interesting if like I did something similar when you were talking to that guy where I have like a 4-year package for like somebody who's coming with that hot spirit paid. And I said, but like, I'll give you this for free.

Yeah.

If you just come into this, like—

That's the decoy offer. That's the decoy offer in Money Month.

Like, you know, $1,500, $2K a month.

Yeah. That's the decoy offer. That's what it is. So they come in, you say, hey, this thing's $6,000. Or if you just become a member of our, you know, Pelvic Platinum Club, uh, Platinum Pelvic. Who doesn't want a platinum pelvis? Right. And so, so then we'll give you this $6,000 gift for free if you just join our club, right? Obviously not club, but you know what I'm saying, right? Like the membership.

Right.

So that, so that's like, so either or is fine. Like if you want, you don't wanna do any continuity, no big deal. You can just pay $6,000 today and we'll take care of you, or we'll just give it to you as free when you join. And the, the goodwill on that offer is crazy, right? And I mean, it crushes. It goes like— and the way that you do this, for everyone who's watching this, by the way, is you can balance how much cash you get upfront by the price discrepancy. So I go over the metrics inside the book, but basically there's a price premium of 30% because we ran this test. People are willing to pay the— basically when you're at parity, meaning 50% of people will go to continuity and 50% of people just buy the one-time thing. Is when the one-time thing is priced at 30% higher than the recurring. So let's say it's 2 months is the duration of your thing and your membership is, let's say, $200 a month. So $400 is the membership price for 8 weeks. And if I sold an 8-week thing and I sold it at $550, I'd have the same number of people who take $550 as $400. So that's the 50/50 split and you'll have more front-loaded cash if you want more like more people in a membership, then you just basically keep jumping it by 10% each until eventually like no one, you know, takes the front end thing and everyone goes into continuity, right? That's the idea. But the goodwill on that offer smokes. It's great. People love it. And then, and then you can combine that with the Wave fee offer, which is in the continuity section, and just say like, hey, If you cancel before this period, you got to pay that. And that's the way we do it.

Love it.

Cool.

Yeah.

Rock and roll, dude. Appreciate you. Congratulations on the kiddos. Give, give Lindsay—

and congratulations to the both of you. This is monumental feat.

So Cam and I went to— for anybody who's watching, we went to— where do we go? We went to middle school, middle school together. But we were neighbors. And so from Baltimore, you can hear the Baltimore accent. Uh, um, you know, I've been told that several times, and I, I still to this day I'm like, dude, you have like a deeper Southern drawl than the last time I talked to you.

Maybe.

Yes, maybe. Okay, well dude, I gotta hop on these other calls, but I appreciate you, man. Of course. Thank you so much. All right, see ya. All right, Hermosi Hotline, uh, next up We're going— oh shoot, we're about to hit our next— no, no, no, we're good.

We're good.

Okay. Well, we have our next milestone that's at 3.3, by the way, guys. So which I'll read. So yesterday I went over 15 mechanisms inside the Money Models books. That was a whole presentation, the Money Model System. But inside the Lost Chapters, which is that guy, which everyone showed up live on the first day. Are you displaying it? Thank you. I think— there you go. So everybody who showed up live got a free digital copy of this. This will be for sale after the event. So anyways, that was just my thank you for everybody who showed up live for the actual launch. But inside of here, I have some of the other mechanisms that I cut out because they're like maybe too niche or too advanced. And so we'll do a little reading when we hit 3.3. All right. So just look out for that.

Yeah, we got special stuff.

Yeah, we got some special— we got some special goodies. Okay. Okay, so who do we call next? Who do we call next? Do you like— what name do you like? Okay, so we just got a— let's get a hot one. Okay, Joseph, Fit for Life Academy, just came in. All right, $800. No, this is $800. Okay, I thought we did it. Hey, whoa, that was a— hey, Speedy Gonzalez on that one, man. All right, well, Joseph, Fit for Life Academy, $600K revenue, $300K profit. Shoot, talk to me, got 5 minutes. Happy birthday, Alex. Thanks, man, I appreciate it.

Happy birthday for the 1000th time.

Anyways, man, no dude, I'll take it, I'll take 1000 birthdays.

Um, I'm a young entrepreneur, been in the whole business game probably for like a year and a half now. I've been growing my socials for about 5 years.

Cool.

Um, we do online health and fitness coaching, primarily weight loss. We focus on a slightly older population, probably 40 to 60 people who have been struggling with weight loss for the majority of their life, pretty much.

Okay.

And, um, where was I going with this? The main goal right now is to be able to double the business over the next 6 months.

Sure.

Okay.

Um, I think the simplest strategy is to get from— we're doing 12 to 15 new clients at the moment at a $3,800 price point for 6 months. It would be to double the amount of clients that we're getting per month.

Okay.

And using your principle of just more, doing more of what's already working until we get to a million.

Love this for us.

Our general funnel is free lead magnet, which is an ebook. I'm gonna find it on social media.

Okay.

100% organic. We don't do any paid.

All right.

That goes into a DM Center flow in the DMs.

Okay.

And then they book sales calls. Okay. So DM Center is setting about 10 to 15 calls per week at the moment.

Okay. Yep.

And we're getting about 200 new leads per week. My thought process to double leads, um, would be I can't do double the content cuz I already create a good amount of content.

Okay.

Um, I would love to be able to start running some paid ads simply because we get a lot of unqualified leads from overseas, India, et cetera, that can't afford our service.

Well, how much content do you make right now?

Um, pretty much daily across all platforms and then one long podcast and one long YouTube, uh, per week.

Per week. Okay. Yep.

So I could double down and I do want to, it's bandwidth at the moment.

Okay. So this is where I— so go ahead.

We're gonna say the same thing.

Actually, I, I don't know if we will. I dunno if we're gonna say the same thing. So instead of doing twice the volume, what I'm going to recommend is that you spend twice as much time on each piece of content.

Yeah.

I, I, I would say I feel like I have the, the content dialed in pretty well. Like that's what I would say I'm most skilled at by far. We have close to 400K followers on Instagram and we probably get on average about 50 to 60,000 views per video.

How much time do you put in each week to make content?

Uh, probably between 10 to 15 hours of my week goes towards content creation, and that would just be scripting, recording. We have an editing team that does all of the editing and posting for us.

If you want to just post twice a day instead of once a day—

I mean, I'm thinking like, how do we deconstrain him in the content creation process and then do double the content with half the time.

Most of it comes from doing research of seeing what sort of formats are doing right now.

Exactly.

So you do a lot of that research?

I do 100% of that.

Oh yeah.

Oh dude, I don't know the last time I don't even scroll content.

Yeah. So that's something that you can for sure get. You can also, you can literally automate that task now.

Okay.

Yeah.

Okay.

I think honestly, I think a lot of people get really caught up in the content creation process and think like, especially because it's you and it's a personal brand, often it's like, who else can do this but me? And you have a system and it's just a matter of being able to write it down, explain it to somebody else what your system is. And now with AI, it's easier than ever so that they can do those pieces for you. Because I mean, you're going to say better quality of content, right? It's like if you want better quality, you essentially— you're to get better quality, you have to put in more time, but you're already putting in a decent amount of time. And so the first thing that you probably want to do is make sure that you're not spending so much time on content. So how can you cut in half the time you spend? I was spending a lot of time scripting mine and then I just stopped because I was like, I just can't even make content if this is what it is because I have to run the business. And then what do you know, it's actually doing better now that I have other people helping do it.

Gotcha.

And so I think that that's probably the biggest unlock for you is getting that off your plate. And honestly, we know a lot of the biggest content creators and they do not do their own scripting. Gotcha. Or research.

I'll also say it's what I enjoy the most. Like I enjoy creating content. That's how I started. So I enjoy that aspect of it. And what you're saying makes perfect sense. And one thing I have been in the question I originally asked, one of my big bottlenecks is that we've gotten to the point where we have about 5 to 6 sales calls, um, on the calendar, uh, probably 3 or 4 sales calls on the calendar every day. And it's a great problem to have, but I take all of those.

So I know I need to delegate that and get a sales person in place.

My thought process with doubling the leads sooner than later would be because I heard Alexi talk about this on a podcast recently, that it's a pretty simple unlock to start running some ads just to get more leads.

Yes.

To the lead magnet that's already working.

Yeah.

So my thought process is just like start running some DM ads and just get a second DM center, double lead flow, get 1 or 2 sales closers.

Yeah.

A simple, at least in my perspective, the most linear path to 25 clients a month.

Do you, when you're running a DM flow right now, is the, um, at the end of every reel, are you saying like, you know, DM PDF or DM?

Every single video and stories daily. I feel like that also overwhelms the audience.

Well, I'll say this, I don't know if it completely overwhelms the audience, uh, because a lot of the reels are going to new people, so they've never seen you before. Also, are you posting like many, many times a day on Trial Road?

No.

Okay, so right now trial reels are 100% guaranteed new audience. So what I would do is look at your, like, sort by, uh, you know, best reels of last 12 months, right? Okay. And then you're gonna get, call it, um, you know, your top 20 or top 30 of all time, and I would post all 30 of those every month. Uh, you can even post like 2 of those a day in addition to your existing post and post those straight straight to trial reels, only new people see them. And then it's still like, honestly, if you did nothing else from what we're talking about right now, just do that and you'll probably get like, you'll get a, you'll get a noticeable boost. And as long as they let you do it, I would just be, I would be milking the hell out of that. Okay.

That makes perfect sense.

Cool.

Would you encourage the ad strategy?

I want like real talk. I want to figure out how to make the content better. Like just being real. Cause like, I think that when you do start running ads, one of the issues that you're gonna have, you go straight DM is that like they're going to be like, they're not going to be nearly as warm as the people are doing it now.

Even if it's retargeting based to people that have engaged with my content.

Well, if it's retargeting, okay, but then if it's retargeting, it's not going to be the end. The number size is not going to be high.

Gotcha.

Okay.

You know what I'm saying?

Okay, cool.

I would do aggressive volume on the trial reels as thing one. And I, me personally, I would see how can I spend more time on the content And that means that how do I, how do I eliminate all the other stuff that are lower leverage on the content so I can still maybe spend your same 15 hours or 20 hours but on the higher leverage work so that you can still make it better? Because that's, that's the long, long term is that you just have to keep growing the brand because the— yeah, because the ads is just going to reach further into the base that you have into slightly colder people unless you have a true cold conversion mechanism, which right now you don't. And to me, the risk of trying to figure that out right now wouldn't be my first bet. Okay.

The last thing I will definitely say is that we do have a pretty strong brand. The socials are probably growing around 6 to 8K per month in terms of new followers. And at what point would you say turn on the ad switch where it's like have that supplement the organic concept?

I just— what do you think?

Not while you're selling.

Well, not while you're selling. Yeah.

I just look— the thing is, it's like hard for me, which is like I prefer if you can to hire ahead. So that you don't have to turn down because what always happens is people turn up the lead flow and then they're like, well, I can't take any more calls. Or, or you say, I am going to take those calls and then you drop the ball on your content.

Yeah.

And so I'm just looking like, let's create that excess capacity so that when you get more lead flow, you have something to catch it.

Yeah.

Yeah.

And in the process at the moment, I'm in the process of hiring 2 sales closers. So this all makes sense.

Okay, rock and roll. Thank you for donating books, man. Appreciate you.

Of course. Thank you.

All right.