The Most Passive $104K/M Business You've Never Heard Of - Ep. #296

The best part about this business model, we talk about the money and everything like that, and that's awesome. Genuinely, once you get that client in the door, this becomes 99% passive. Majority of the time, your website does not need to be touched ever again. I have clients that have been with me for 5 years and I haven't spoken to them or had any communication with them since, and they've been paying me every single month. That's my goal. People like to talk about real estate like it's passive, but Oh, it's definitely—

oh geez, don't get me started.

Definitely not. This is 1,000 times more passive than real estate. The risk is so much lower. You're not taking out a half a million dollar mortgage on some property, and your overhead is maybe $20 to $25 a month.

So let me tell you about Kyle. A while back, Kyle texted an old high school friend a screen recording and 20 minutes later had $6,000 wired into his bank account, and he had never earned a dollar online before that day. 6 years later, he runs what he calls a website landlord business, doing about $104,000 a month with almost no overhead. And yes, he works only an hour or two a day. He uses cheap online tools to find supply and demand gaps. Then he builds basic websites within those niches. So today, of course, we're gonna talk about how you can copy Kyle, what his script is for closing these deals, and what niches are still untapped. Enjoy. Well, Kyle, tell me what a website landlord is.

So essentially, a website landlord is people who own pieces of internet real estate, and it's not domain flipping or anything like that. It's you're basically building a website for a certain niche in a certain city and then renting out that lead flow that comes through it to an actual local business owner. So let me give you an example. If I were to build a website right now for junk removal services in Austin, Texas. I don't own a junk removal company. I don't have a client that has a junk removal company. Anybody could build whatever website they want, you know? So I go out and build this website that's all about junk removal services in Austin, Texas. I do what's called SEO on the website to get it ranking. It involves content and something called backlinks we can get into later. But I get that website ranking to page 1, and once it's on page 1 of Google so that it shows up anytime somebody searches for junk removal services in Austin, Texas, obviously people are going to be clicking on it. Obviously there are hundreds, if not thousands of people in Austin, Texas every day going to Google to try and find a junk removal company. So if my website is one of those sites on page 1, I'm going to get a percentage of those people searching. And once they come to my site, they're going to see the little phone number that's on my website, right? It's called a tracking phone number. I can control where all those calls flows to. It's my like dummy number. So when people call that phone number, it automatically forwards to a business owner I've partnered up with. Right. But to backtrack just a hair, before I even have a business owner hooked up to them, I'm getting the site to page 1. It's getting calls. At first, I'm just letting all those calls go to voicemail before I have a client working with me. It's no big deal. Let them go to voicemail. There will be more callers next month. There's never ending—

And you're capturing their info that like they're not as likely to convert, you know, if you find a guy to buy your leads and he calls them later, but at least you still have the data and it's proof of concept. So you can say, hey, Bob, I get 3 calls a day for people searching for exactly what you're selling.

Exactly.

Right.

Exactly. Well, the best part about this is that the overhead is so low in this business model. Like, if you're using the most expensive tools, like the most drag-and-drop, user-friendly tools, you're spending no more than like $25 a month in total overhead per site. That's for the hosting. The URL and the phone number, right? So the benefit of that is that once I do have a website that's getting like 50 to 100 calls or so a month, I'm calling up that junk removal company in Austin, Texas, and I'm like, hey man, I got this website. It's getting like 50 calls a month of people looking for junk removal services in Austin. Can I connect them to you for a week for free? And I'm not gonna take credit card information from you. I'm not going to make you sign anything. It's literally just a Free trial. And sometimes it sounds too good to be true to them and they're just like, it sounds suspicious.

Yeah.

Usually they're like, well, whatever. All you need is my email and phone number. So you give 'em the free trial.

And you just want them to start trusting you and to see that your leads are good. So then they'll want to pay for them, right?

Exactly. So I give them the free trial and by the end of that week, if they've made some money off my calls, that next conversation I have with them is really just about what monthly flat fee we negotiate. Right. And usually I'm pretty generous. Yeah, please.

I was just going to say, can I pause you? Because I feel like that's the— that's a big key of this is if they're making any money on, on my calls, how do you know that they're reporting accurately, that they're not lying, that they're following up with the leads, that they're actually answering the phone, etc.? Or is— does there just have to be a good bit of trust involved?

Well, I could see if they're answering the calls or not. Sometimes in the call tracking platform, I could see the recording stuff. But the thing is, is if they didn't make any money off of it, then they're probably not going to be a good client for me anyway. So I'm just going to move on to the next person because if they're not making money off of it, why would they pay me? Right?

Sure.

And if they are making money off of it, they're not going to want me to turn the calls off. So there's not much—

So the incentives are aligned.

Exactly. If they—

Can you see the recordings or the call transcripts as well?

Yes. Here, I could even show you what it looks like.

So if they're like, sorry, yeah, I got a few calls but didn't go anywhere. And then you look at the transcript and it's like, all right, $700 invoice sent. You're like, hey, bro.

Yes.

But you're saying that doesn't even happen that often because they see that the calls are good. And now it's just a matter of not will you pay me, but how much will you pay me?

Yeah, we come up with a flat fee and I don't do any contracts with them. I'm just like, you know what, cancel any time because I have the leverage because I'm sending them the calls. And if they cancel, the calls go away. So they're basically if they cancel, they're agreeing to lose a big portion of their income, right? So they can cancel whenever they want, right? So they have that exit. So it's a pretty easy conversation. They saw the calls, they trust me. Versus a standard marketing company who does like, sells Google Ads or Facebook Ads or something like that. These sales calls for those people, it's a trust game. They're working out like, hey, can I convince this guy to pay me $1,500 a month for the next 6 months and without any guarantee of results, right? That's a tough sell. It's like you have to show them testimonials and be like, look, I promise you I'm really, really good at this, but sign this contract and you're gonna pay me for the next 6 months whether I get you results or not. With me, the whole script is flipped 'cause I'm like, hey, I already did the work of building and ranking a website and it's sending you calls and you're making money off of me before we even agree on a deal. And I'm not pressure selling you. This is more of like a landlord and tenant relationship, not like a customer, please work with me.

Right. This is the rent. And if you don't like— I've had rental homes. It's like the rent is not negotiable because I've got 18 people applying for this house.

100%. You don't want these calls? I'm just going to call Joe down the street. And I know it sounds like aggressive and mean, but like my service is hugely beneficial. To small business owners who can't afford to take that $1,500 a month risk on some marketing company with no guarantee of results. These small businesses, most of the guys I work with, they don't have $1,500 to gamble on a marketing company. So with me, there's no gambling. Day one, they're getting leads to pay for my services. There's never a loss of money. It's— I'm an instant slot machine. You put, you put $1,000 into me, I'm sending you $5,000 back. You see what I mean? So it's really a huge benefit to these like more mom and pops that can't afford to gamble on a marketing company.

Well, you mentioned like, I don't have contracts, like I don't, I don't negotiate on price and this is a trust business and results are the greatest form of trust there is, right? Contracts equal lack of trust in a relationship. You're saying I already brought you results. They were free. I called you and I brought you results. Like, This is the price. I don't need a contract because I got a guy waiting.

Exactly. I'm not afraid of you canceling. I could call the next person, you know.

I loved— like, this is one of my general frameworks for life, is do the hard thing first. So like, if you start a business and it is just a beast and you're beating your head against the wall and it takes months to get profitable, that means everything after that point is just going to be so much nicer and easier. Every business after that point, every sale after that point in the same business. You're saying, listen, bro, I did the hard part. The hard part is ranking. That's my skill. You're good at junk removal. You keep doing that. I'm really good at being a website landlord. I've already done the hard part. I've proven the results. And then everything after that is just gravy.

Exactly. Exactly. It's just day one results. And that's really the benefit. The only downside for the business owner is that their brand isn't being advertised on my site. Right. But they don't care. Because the only reason you wanna be on page 1 is because you want the customers that come from page 1. And it's tons. And it's not just any customers, it's high-intent customers, 'cause no one is typing into Google junk removal services in Austin unless they're looking to purchase junk removal services in Austin.

Mm-hmm.

So yeah, and plus a lot of these people have had experience with paid ads. And paid ads, you get such low ROI because you pay thousands of dollars for them And plus, if you're anything like me, which I think most searchers are, once you go to search on Google and you see a bunch of ads in this top section of the front page, you scroll right past them and go to the results below, which is where we are, because people have this inclination, or what's the word, the belief that if you're in the spots below the ads, that means you're the best in town. When in reality, showing up right there has nothing to do with your quality of work. You could be the worst junk removal company in all of, the whole state and you'll still be on page 1 because you have good SEO. Sure.

And just like anything, if you're—

go ahead.

If you're the best at marketing, you win.

Yeah, right. Yeah. And the great part about the best part about this business model, we talk about the money and everything like that, and that's awesome. Genuinely, once you get that client in the door, this becomes 99% passive. All right. As you scale to more— because once the site is built and ranked, majority of the time, your website does not need to be touched ever again because we're competing in low competition SEO spaces.

Like long tail searches?

Not even, not even because Junk Removal Austin might not be a great example because I haven't done my research on an actual low hanging fruit niche and city. But SEO is just a game of competition. I don't want to go into a niche where, like Personal Injury Lawyer Los Angeles, where the the competing websites are funded by major marketing companies that these law firms are paying $50,000 a month to. I want to compete against Joe, Bill, and Steve in Orem, Utah with the junk removal company where they have websites that I'm competing against that they bought those websites maybe back in 2005 and haven't touched them since. And so I go in there, make a half-decent site and do basic SEO and I'm knocking them out of the park. Really quickly. And I don't have to do ongoing SEO to maintain the site because I'm already so far ahead and they're not even noticing that they're, they're not in the number one spot anymore. And they're still getting roughly the same amount of calls because being in spot one, two, or three is roughly the same.

Yeah. It's funny because Orem, Utah is actually really competitive usually. So all those returned missionaries like myself, I know you just picked that city to run it. Super competitive there.

But I want to just mention the passive part one more time because it is genuinely passive. The only thing that— the only time it becomes like maybe an hour or two a day of work is when you scale up to a point where I'm at, where I have like over 100 clients and maybe 20% of those clients every month, credit cards decline and I have to go follow up. Oh, wow. Payment, right? And so I just— that just involves me shooting out texts and emails every day to follow up with them to collect the payment. Maybe by the end of the month, 1 or 2 of them don't pay. I have some churn and then I'm following up, just making phone calls to find a new client to replace them.

Yeah. I mean, what we're talking about is basic supply and demand. You're saying you, you look to the supply and demand first, not necessarily the keyword volume, but the supply and demand. And there are at least 100, there are at least 1,000 home service niches out there. Oh, and I know that sounds like too much, but there's really not. If I say the word gutters, then it's gutters. Gutter cleaning, gutter repair, gutter replacement, like just in the gutters, there's at least 10, right? So let's just say there's 1,000 to be conservative. And then let's say there's only 1,000 cities worthy of trying to rank. That's a million supply and demand variations that we're talking about. Are you telling me that the market is so perfectly efficient that all million of those combinations are— there's the right amount of supply and demand in all of them? Absolutely not. And there in a decade from now, there still won't be, right? So that's the level of opportunity here. And I, I, on this podcast, like we only reserve the P word passive for like things that I truly believe can be. And I, I don't like that word usually, but I will use it when I feel like it applies. And it seems like this is one of those exceptions where it does apply.

So listen, it's not like dividends, right? It's not passive dividends.

Well, it takes. Activity to get to the passive point.

I'll tell you right now, you know, people like to talk about real estate like it's passive, but it's definitely—

geez, don't get me started—

definitely not. This is 1,000 times more passive than real estate because the risk is so much lower. You're not taking out a $500,000 mortgage on some property, and your overhead is maybe $20 to $25 a month in total overhead. Plus, you cash flow way more. And the maintenance is so much lower.

So let me ask you—

it's about as close to passive as you can get.

Yeah. So let me ask you about pricing. I'm going to make an assumption here because I'm kind of in this industry and I've, I've been in lead gen forever, different types of lead gen, directory sites. To me, there's a lot of overlap here with directory sites. I mean, a directory site could be a website landlord, a Rank and Rent site, right?

Yes.

So I'm going to make an assumption that you've tested a pay-per-lead model here as opposed to a flat monthly price model. Because you thought, man, we could be much more profitable if we charge $30 per call. And $30 per call is very generous because we know that his close rate's 50%. His average job is $800. So $30 per call is, you know, cheap for him. You tested it and then you saw that it just didn't work as well because these business owners want to know what their bill is going to be every month. Even if they net out behind, they would rather pay you a flat fee every month because of the predictability of it. Is that accurate at all? So what most of these business owners want to do is a commission-based.

And they want to just pay on jobs they close. But obviously I can't do that because that requires me to track all their jobs and track and trust. You know, there's no way for me to know if they actually close the job or not.

And if you could, if you could trust them perfectly, it'd probably be more profitable for you.

I'm actually— it's funny you bring that up because for the first time ever, my contractor that I use for my house, we've become pretty good friends. And just recently I started generating concrete leads for him and we're actually doing a 10% commission with it and it's turning out to be way more profitable. But that's because I totally trust him and he's a cool guy. Yeah. Yep. But the pay-per-call thing, yes, it's unpredictable for the, uh, for the client. And I've done things in the past where they have fluctuating tiers of rates where it's like, hey, if you get 25 to 50 calls, you're going to pay this much. If you get 50 to 100 calls, you're gonna pay this much. I've kind of abandoned that, not only for the client's sake but for my sake. I, I know I do really well. I make around $35K a month, and it might sound impressive to some people, and it is, I guess, kind of impressive.

But is that profit?

That's pretty much— the overhead is like so low. Our company does around $100,000 a month as a whole, and our overhead's maybe less than $5,000 a month. Yeah, it's crazy. But the point I'm trying to make is I am not one of those aggressive entrepreneurs with like SOPs and watching motivation videos and going to the gym every morning. I am at my core a fairly lazy guy. Like, I used to work in television. I worked in television for 10 years, and I was working 20 to 24-hour days some days during show weeks. Like, I worked on award shows like the Oscars, Emmys, big shows like that. And when there's a deadline, there's no avoiding that deadline. I was grinding it out and got burnt out and started looking for business models. I guess the reason that relates to what I'm about to say is because I really wanted— I was chasing time freedom, and I tried finding it in things like dropshipping, day trading, other business models online. But when I found this business model, I was in it for the time freedom and the easiness of it. And so when I first started, I had this rush of motivation, built out really, really big for the first few years because I was just— I had my eye on the prize. But I'm in year 6 of doing this business model now, right? And at the level I'm making, which some people would assume I should probably be making more after 6 years, but I'm I've kind of fallen into the comfort zone. I'm making a, a number that I'm really comfortable with. But the reason I switched from the tiered pricing to the monthly flat rate pricing is because I wanted simplicity. When you have the tiered pricing, I have clients reaching out to me being like, why did my invoice pop up to $1,500 this month?

Mm-hmm.

Um, then they want to go over every single lead with me and determine whether it was actually a legitimate lead or not. I don't want that headache. I'd rather make less money and have this be 100% passive than squeak out an extra 5 to 10 grand a month because I'm like, you know, overanalyzing and auditing all the leads. Yeah, I don't want anything to do that. I have clients that have been with me for 5 years and I haven't spoken to them or had any communication with them since, and they've been paying me every single month. And that's my goal.

How long did it take you after starting this 6 years ago to see your first win?

Uh, 3 months. And it was, uh, I kind of did it a backwards way. Since I was really hungry to get money in the door, I didn't do it the classic way of building the sites first, then finding a client. What I did was I went onto my phone, I went into my Facebook, Instagram, I made a list of all the business owners I knew, right? And I came across this one friend of mine who was an attorney, um, a workers' comp attorney. He was a friend of mine from high school. I hadn't talked to him in 10 years though, but I reached out to him. I made a screencast video where I recorded my screen and showed him how this business model works and how I could build him a site targeting Torrance. I could build him a site targeting Long Beach, Anaheim, Simi Valley, and specific cities targeting where I could generate him leads from. And he loved the idea. He wanted to try it. And he said, what do I have to pay to get this ball rolling? And so I just, I had never, I had never made that single dollar in my life outside of W-2 earnings. And so I just threw out a number because I always heard in movies and stuff. Aim high and, you know, you can negotiate that.

Well, in your, in your defense, like a personal injury attorney as like an agency owner is like the golden client.

Well, it was a worker.

They've got budgets.

It was a worker.

Okay. You said that. Okay.

So it was a little less.

Attorneys are great clients.

Yeah.

They've got cash.

Yes, exactly. I just threw out the number. I go $6,000 and within 20 minutes it was wired. And I looked at my wife. I'm like, somebody just wired me $6,000. It didn't seem real. But the good thing about that is I still at the time wasn't like an expert at this. But what was good about that is that this was somebody I knew and I didn't want to burn his trust and burn a relationship. And so by him sending me that money, it lit a fire under my ass to get things going. I didn't overdeliver. Yeah, I didn't care if I spent every single dime of that $6,000 in outsourcing or ways to make it happen faster. I just needed to deliver results because I knew if I did, it would be a long-term relationship and he's still my client. To this day. Wow.

Now what does he pay on an ongoing basis?

Well, since he was a friend, he did have fluctuating— and at first we started out at like $5,000 or so a month, and then we got— once lead flow started increasing, I got to like $7,500 a month and stuff. But over time, like, we, we've restructured deals because he is a friend. We go on hikes and stuff sometimes. He was— started paying me like $300 per new client he landed. Which added a little bit more incentive to me. And then he would also pay a base SEO fee of like $1,500. So he'd pay me $1,500 a month plus $300 per new client he signs up.

Wow. So you spent your first 3 months just learning. Were you building and publishing anything or just kind of learning tools?

I was just building.

Well, I think it's so important that when anyone launches any agency, digital marketing, whatever, start with your network. Like, yes. It all comes down to trust. Don't be afraid to, to burn your friend, like just let it light a fire under you to overdeliver and start with your network. Because if you just start cold with people out of insecurity, which I've done that before, it's going to be so much harder to get your first yes. But if you get your first yes from a friend, now you have a case study that you can sell to all the cold leads, right?

And I always tell people, I think a key is digging yourself into a hole. You know, which is what I did.

It sounds crazy, but I know exactly what you mean.

Yeah, I accepted $6,000 from this guy, and I'm not the type of person that feels comfortable just robbing someone. So I felt this overwhelming pressure to dig myself out of this hole. I'm like, he's expecting something very soon. I got to get into action. It's kind of like— it's kind of like a gym membership. If you go sign up at Planet Fitness and you're paying $10 a month, it's very easy for you to be like, I don't feel like going this month. Big deal. $10, right? But if you're spending like $500 a month on a gym membership, you're going to be like, I better show up because I'm spending this damn money.

Well, didn't you tell me that you first learned how to do this from a course? And if so, how much did that cost? Did that light a fire under you?

$6,500.

How much?

$6,500.

Whoo! Was it a course and a community or just one or two?

Course and community. It was a good one. Right. It doesn't exist anymore. That course doesn't really exist anymore, but it was— I don't care. It doesn't— I'm so glad I spent the money now, obviously.

Yeah, sure.

But what was I going to say? I did not have a ton of money back then. Like my net worth was probably $20K, but I was so desperate to get out of the situation I was in, in my previous career that, you know, I had bought $500 courses in the past. Now my mindset was like, you know what, you get what you pay for. What, what, why would I spend $500 on something that's not getting me anywhere? Wouldn't I rather spend $6,000 on something that's going to actually get me somewhere? You know, obviously you have to vet it. It's actually going to be worth the money. But like I did, and it actually was, you know, this was, there was involvement and everything.

Yeah. I think, I think that's why courses and communities get a bad rap because they don't deliver on their promises. They, they sell a crapload of goods and if it, if they do deliver on their promise, they can be life-changing.

I know. Courses do have a bad rep and they probably, some of them deserve it, but a course changed my absolute life and I've witnessed it change so many other people's lives. It's just, you're, you're learning new skills and what you really want to find in the course is a community that's keeping you engaged. Um, that's probably the most important part.

What is your most, how much does your most profitable customer pay for you? So let me ask you two questions in one. One is what, how much do you make from your most profitable customer? Two is How much does your most profitable customer make for themselves from your leads? Does that make sense?

Yeah, yeah, yeah. Like how much are we both benefiting from all of this?

Yeah. And maybe it's the same customer. Maybe it's not.

I don't really have exact insights onto my customers' revenue. Like our— Yeah. I don't have exact numbers into that, but my metric really is—

Anecdotally, like, do you know of a customer that was like, dude, I'm making $30 grand a month from your leads? You know what I'm saying?

I have been told things like that before, so I do have clients who have told me that, like, I get holiday cards from some of these guys. They're like telling me how grateful they are that I made their Christmas because I showed up in their lives. I have a guy who told me, we just upgraded our house to a— we moved to a 4-bedroom house instead of a 2-bedroom with our kids and everything, and it's all because of your leads. The best feeling ever. And it— you almost feel guilty accepting that praise because you haven't really done any work for them since you built the website, you know. It's, it's It's not like I'm grinding it out for them every day, but I'm still benefiting them. But we do have some clients that pay us, you know, like $5,000 a month. And my metric for assuming why they're paying me is that they're doing really well. You know, if they were only squeaking out an extra $1,000 off my— the $5,000 they're paying me, I don't think they'd be still paying me.

Yeah. So how many calls is a client like that getting per month?

1,000? Well, it depends what niche you're in. And the niches that my partners and I focus on, it's— I mean, that would be maybe like 800. 800 calls a month. So let's— sometimes I'll, I'll build out the client to— sometimes a client who has like multiple cities, like you don't really get to 800 calls a month in one city.

In most—

sure, it's usually multiple cities or multiple territories within the state. So what you could do with some of your clients is you could grow them out if they offer services in adjacent cities or adjacent markets. So you'll start with them in let's say Dallas, and then you can build them another site in Fort Worth, you build them another site in, say they go all the way to Austin, build them another site in San Antonio. And then all of a sudden you've built up this client to something like $5,000 a month and getting 800 leads a month, you know, it's well worth it for them. I honestly am okay. Like there are tons of clients that I should be getting paid more from. 100%. I deserve more for some of these sites, but because of the passive nature of this business model, I try not to get too greedy because if somebody loves my leads and say I feel like I should be getting $1,000 for this site, but they're only paying me like $600, I'm going to be okay with that deal because I know they're going to be comfortable at that rate. They're never going to bother me and they're going to stick with me for years and years and years. Yeah. And I'll have to hear from them and it's easy versus if I'm charging them too much, then they're going to be on top of like the quality of my services and be calling me up and questioning every time there's a slow month or something. I don't want any of that. I want easy.

This is such a hard principle to learn. I'm still trying to learn it because I'm like, I, I still fight a scarcity mindset having grown up poor. But if you think of the most profitable companies on, on the planet and the, the highest value companies on the planet, Apple, $4 trillion company, they are all companies that offer hundreds or thousands of times more value than what they're selling. Amazon. If Amazon Prime went from whatever it is, $150 to $400 tomorrow, I'm going to pay it. And Amazon knows I'm going to pay it because I'm buying from Amazon like every single day. If the Apple iPhone went from $1,000 to $2,000, I'm going to buy it. And Apple knows it, right? They know that not everyone will, but their core users will. But my lifetime value with Apple is over $100,000, right? Because of the fact that I think that even though my MacBook was $3,500, I'm going to spend thousands of hours on it and generate millions of dollars. From that MacBook. For sure. It is. It is. Yeah. It's worth hundreds and or even thousands of times more than what I paid for it. And because of that, Apple's insanely profitable and they're a $4 trillion company. Rinse and repeat with any mega profitable company. And so it's hard to do that. It's hard to not charge more when you know you can. But if you play the long game and you're relentlessly addicted to playing long-term games with long-term people, then you can do it. Like you cannot raise your prices just because you can. You can keep buying more and more trust and goodwill, and then they'll tell their friends and then they'll tell their, their friends and you will make more money while charging less all along. It's a magical thing.

Yeah. It's, it's, you almost want people to forget your bill even exists. That's kind of my goal. You know, I don't want people to feel it every month and get punched in the gut. You know, I want them to kind of forget about it cuz then they're just gonna leave me alone. What we're all doing this for. I mean, some people are in entrepreneurship for the love of the game. You know, some things about doing business gets me excited, but the real thing that gets me excited is the unlimited amount of time I get to spend with my kid, the— my ability to teach, my ability to travel whenever I want on my own terms, and, you know, being able to max out my savings accounts and IRAs and everything like that. And so I just create a safe life for my kids. So that's my goal. It's not to necessarily become the richest man in the world. I don't have Jeff Bezos, but it's what, just once you hit this level, you kind of just want easy.

Whatever guru or marketer try to convince people that a lifestyle business is a pejorative, a bad thing, a negative thing, I hate them because I've done both. I've raised money, venture capital. I've flown to Silicon Valley. I've like, I've gone like the billion dollar exit path and my gosh, like you are much more likely to fall on your face. Then you are to ever reach $1 billion or anywhere close to it. Whereas if you optimize for 6 figures a year or hundreds, like $200,000, $300,000, $400,000, $500,000 a year, you are more likely to get to $10 million a year or $5 million a year than if you optimize for $1 billion and land at $10 million. Like, if you optimize for $1 billion, it's boom or bust, and it's probably bust. Optimize for $500,000, it's more likely to be boom, and you're able to take that $500,000 and scale it if you want to while still having a great Lifestyle. Like, I spend hours in the yard every day trimming my fruit trees, planting trees. I love spending time outside with my kids, traveling. We go on like 5 trips a year, and this is a lifestyle business, and it's freaking awesome. Yeah, people should optimize for that.

I don't think people realize that you don't need a half a billion dollars to be financially free. You know, you only even need $20 million to be financially You just need enough money in your checking account that could keep you floating for a year or 2 years if shit hit the fan. You just need to be able to have enough money in your bank account to be able to tell your employer to screw off if you didn't want to work there anymore.

Yeah.

Because that's the real freedom. If you feel like you're trapped in a job and you can't leave it, that's not freedom. If you have enough money in your bank account and you could walk away from any job, then that's true freedom.

What does your tech stack look like? What tools could you not live without to do with, uh, to do what you do?

So number one, you know, I started off building sites on Weebly because I didn't know how to build websites and it's super easy drag and drop. But since I got partners who were a bit more savvy at things like WordPress, my costs went down and we use WordPress and things move way faster. The reason I don't encourage people to start with WordPress if they don't already know it is because it takes a long time to learn it. So even though Weebly's more expensive, it's better to get started on that. So first tech stack, WordPress or website building tool. Then you got CallRail, which is the call tracking software. You could use CallRail, you could use Twilio, and there are a bunch of other providers out there, but that's where I get the phone numbers from and how I could track all the phone numbers. And it also automates emails to my client with a recording of the call and the phone number of the caller so they can keep track of any call that comes from me. And so that there's no question of whether it came from me or not. Um, and then it also does something called a whisper message that whenever my client picks up the phone, the first thing they hear is a little robot voice recording that says, call from Kyle's Leads, and boom, they're talking to the customer. So it's an all-in-one tool. Um, so CallRail, WordPress, and honestly an Excel sheet. I don't use any fancier— I don't use any fancy, uh, CRM. I only use GoHighLevel. Some people do, but all I need is my client's name, business name, phone number, email, and that's all I really need. And obviously we have a Google Sheet page for all of our sites and know, all the domain names, everything. But there's no reason to get— to get overly complicated with it.

Now, for researching what city, what niche to go after, are we talking Ahrefs, Semrush, or are there other tools out there that you use? I—

so as a beginner, I would use Ahrefs because it's very detailed and it'll help you get really good, accurate information to find backlinks, to do competition research and niche research, etc. But today, these days, I use something called Mangools. It's just a really clean, fun, easy interface. And I don't need extreme detail anymore because I have a lot of intuition I've built up. And so I'll use Mangles. It's really cool. They got a Chrome plugin that's really easy, and that's just what I use now. But I would recommend anybody starting out, if you're learning this game, to use Ahrefs.

Okay, what did your first like 6 months and 12 months in revenue look like? How, how long did it take you to get to $10,000 a month, $20,000 a month, etc.?

I got to $10,000 a month at the end of my first year. I found this business model in August of 2019, and then obviously pandemic hit in March 2020 and everything shut down. And so my TV work went away and I was double down on this and give it my full attention during pandemic. You know, I was able to get to $10,000 a month on, you know, I would say 50 to 75% effort, right? Just because I'm not, like I said before, I'm not the crazy aggressive person. So. There are some people I know who got to $30,000 or $40,000 a month by the end of their first year. I'm just not one of them.

And then how long until $20,000, $30,000, $100,000 a month where you're at now?

We started averaging around $100,000 a month in the company around year 4, but we were hovering around $50,000 to $70,000 for a while. We were kind of cruising and plateauing for a bit, and then we just got a second wind and built ourselves up to $100,000 around, you know, year 4 or 5.

Okay. How do you find clients? I guess you told me in the very beginning you built— you proactively build the sites for them based on what your main goals, Ahrefs show, and then you go find junk removal companies in that or whatever it is, whatever site you built, you go find people to sell it to. Is that right?

Yeah. I build a generic site that's all about the niche and city, generic site, no branding. And then I just literally go to Google, Yelp, Yellow Pages and make a list on an Excel sheet. Of all the businesses in town that offer that service. And then I start calling because it's such an easy phone call. Some people are too afraid to make the phone call, so they do text or email, but I just want to get it over with. And I'm just offering people a free trial. It's a gift.

The difficulty of your phone call is correlated with the strength of your offer or not, right? You're confident what you're selling because you're already generating leads for the person. Like, you're calling them up and saying, I have free money for you.

Yes.

Would you like that or not? So I hate cold calling. I'm an introvert. But if I'm calling with that offer, I'm picking up the phone all day.

No brainer, right? It's a no brainer. I have a script I've said over and over again that I've tweaked throughout the years, but it's not—

What's the script? What's the 80/20 of it?

I mean, it's really just like I'm really sounding very casual. It's not— I don't call them and say, hey, my name's Kyle from Superstar Leads LLC, and I want to know if I could speak with the business owner. No, I'm not doing any of that. I'm calling up and saying, hey, what's up, man? I'm almost presenting it like I have a problem I need help with from them. I go, hey man, I got this website that, that is getting like 50 calls a month for junk removal services in Austin. I'm not a junk removal company. I don't know what to do with them. Do you think I could send them to you for like a week and you could just see what they're like? All I need is a phone number and email to send them to. Obviously there's some conversation there. They ask some questions. I tell that, I explain to them how they're going to receive the calls. And then it's almost like, you know, they're almost like, this is not going to work. This is going to be nothing. This is some schmuck that's just, you know, calling me for some random reason. And it's really that casual. I almost want to present it like I need their help taking over these calls because I can't handle them. Right. And so I just give them the calls for a week and then it does the selling for me. I just have to almost trick them into accepting this beautiful gift because they're also hitting the— or else sometimes they'll get in their own way. And they'll just be like, this is too good to be true. I can't take this.

Right, right, right. Do you have any idea like what your close rate is with this pitch if you actually get them on the phone?

I would say it takes me 1 to maybe 3 trials to get a locked-in business owner. 1 to 3.

What's your churn once you have them?

Average client lasts for— I mean, I have ranges. I mean, it's really— if somebody is going to cancel, they usually do it within the first 6 months. But if they make it past 6 months, they're sticking around for maybe 5 years. Or more. Wow. I have client, I still have my first client, like I said, so, you know, there, it could be forever.

Are you able to share a URL of, of a site so we can see like what it looks like?

Why don't you just go to Google and type in auto glass repair in New Orleans?

Share my screen.

All right.

Close that.

So you see, um, okay. You see the second site right below Broadglass right here? There. Yeah. Click that. Okay. This is my basic site. And what you— it's very basic and ugly, but I think it's beautiful because you know what?

It works.

Google is just an algorithm and it's like a baby and you want to be abundantly clear to Google, this is what I do and this is where I do it. You don't want them to struggle to figure that out. So my website loads really fast, easy for Google's little bot to read. And it clearly conveys that I am the expert on auto glass repair in New Orleans.

All right?

And so it gets the job done, it communicates properly, and I just keep adding content to it until it gets to page 1, and there it is. And this site generates around 50 calls or so a month for a company I've been working with for 5 years now, and he pays me around $600 a month for the past 5 years, and I've maybe talked to him 5 times.

Jeez. And like, you— they get the, the form leads for free as well, right?

Yes, he gets the form leads as well.

Yeah, it's fun. It's funny you talk about— sorry, go ahead.

No, and also, like, I know this site's ugly and basic. You tell me if you're, uh, sorry, if you tell me if you're going to hire a towing company or an auto glass company, do you care if their site is pretty or not? No. What you do is you want to know my highest phone number.

Yeah, my highest converting newsletter, like paid ads site for my newsletter is this one right here. No distractions there. Can't— I'm serious. I've A/B tested it. It looks ridiculous. Like, put your picture on there, put a testimonial. No, that's, that's a distraction. That's something else for them to click. I don't want them to be distracted by anything. I don't need their number, their name, anything. Just give me your email. That's very— works.

That's awesome. Yeah. I mean, when you're looking for these blue collar services, you, you expect the sites to be shit. You want your tow truck guy to not really care about his internet presence, you know?

If I have a contractor roll up to my house with a wrapped truck, I'm saying, bro, turn around. You're too expensive. I'm serious.

That's funny.

What, what niches do you target? Does it matter? Is there a better niche out there than others or does it mostly come down to supply and demand?

It mostly comes down to the level of competition. So, uh, I mean, great niches. I know somebody making $50,000 a month strictly doing epoxy flooring leads, right? I know a guy doing $90,000 a month and all he does is spray foam insulation leads, right? So there's a wide variety of niches and you learn about new ones all the time. Like I just stumbled across one the other week, crime scene cleanup. You should look into that industry. It's actually something that you might find interesting for one of your shows. Oh, you have?

Yeah, there's like, I haven't done an episode on it, but I'm aware there's franchises for it. Like it's a very profitable business.

They make so much money. It's dark business. I don't know if I'd want to generate leads for that, you know, but it's an industry that a lot of people have thought about and you're going to come across a lot of these types of industries as your eyes are opening to these different spaces. Right. So, yeah.

Now this is a loaded question, but like, what's the 80/20 of how to get these to actually rank? Like let's say you look at these, you know, these research sites, lot of search traffic, very low competition. Okay, cool. You buy the domain, city name in there, you build it. What, what are like the most important things you need to do to get it to actually rank for the client to get leads?

I'm going to preface this by saying that too many people follow the SEO blogs and the big Google updates and stuff and get freaked out and take them too literally. It's gonna be hard to believe and people are going to think I'm full of it, but I'm doing the same strategies I was doing back in 2019 to get local sites ranked, right? If the 80% is content and backlinks, the 20% is maybe citations, uh, heading structure and stuff like that, right? But the 80% is content and backlinks and volume of content, quality of content, and quality of backlinks and volume backlinks. People have to remember if they go onto Google and do their own research on SEO and they think that my strategies are outdated, they have to remember I'm doing local low competition SEO. All right. And I'm not competing against, I'm not trying to rank for the keyword weight loss where I'm competing against Wegovy and Ozempic. I'm competing against the keyword junk removal Austin, Texas. And the other sites there are run by Joe, Bill, and Steve.

Yeah, you just got to show up.

Yeah.

And so good, best principles, backlinks, content. Sure, of course. But mostly just show up.

Yeah, show up. Exactly. And if you're reading online about all this stuff like schema markup and the Google Helpful Quality Content update, that mostly applies to the major sites that need high-level SEO. We're not doing any of that. No need to. You know, I probably make more money than a lot of the people trying to do, do that stuff. Right? You don't have to go after the biggest fish, you just have to make a bunch of salmon and trout.

You, you're speaking my language. That's a fish analogy. I love fish analogies. I'm going to show you a website here. To your point, I don't know anything about SEO. I'm not technical. I've heard about schema markups, I don't know what it is.

Don't worry about it.

Um, but I was doing research for pet cremation, long story, and I saw, holy crap, a lot of people are searching for pet and horse cremation and euthanasia and No one is providing it.

Wow.

And so I bought the domain name. I spent $3,400 on this domain name, which I don't recommend, animalaftercare.com. And I've done nothing with it. I set it up and this is my traffic for the last 2 years.

Wait, you've done nothing with it?

Nothing. I've done nothing with it. I'm, I'm not selling the leads. I'm not— if anyone's listening to this or watching this and you have a contact at like, so Mars, the big candy company, they own a bunch of vet clinics. If you have anyone at Mars or anyone that has veterinary clinics, I will sell you these leads because I'm getting calls and, and like emails every single day. And I'm, I got too much going on.

I can sell that.

Please do.

Seriously, if you could, we should, if you're serious, shoot me an email.

And no, I am serious. Like I'm, I am serious. I'm not just like, this isn't for the content. I, it's been like on my back burner forever. But my point in showing you that is that I don't know what I'm doing. I don't know about SEO, but I knew there was a supply and demand imbalance. So we built a website and it not only does it get leads every single day, but it's growing every single day.

How are you capturing leads?

Just like through a form or a form and then they go to a Google Voice number.

Yeah, we got to do something with those. That's a really interesting niche.

Yeah, I think it's a valuable site. A horse cremation costs $3,000.

Wow.

In the state of Texas, there's 2 cremation facilities. 2. Texas.

So that could be a problem because they probably are already overwhelmed with leads and they might not be willing to pay for more if there's only 2. Right. So that's true also. But yeah, there's some value there to be had for sure.

For sure. Let's talk after about that.

For sure.

All right. So doesn't matter the niche. I think I got— I ran through all my questions, Kyle. Sorry to rush us off, but where, where can we find you and learn more about you and what you do?

So if you want to learn more about what I do, I did set up a page with— it's not going to grab your email or anything like that. It's a whole page with information on how this business model works in more detail. Rentlocalsites.com. Again, it's rentlocalsites.com. It can explain to you the, the more details about how this business model works with videos, but also It's a great way to hang up with me and learn more with little tips and tricks. You could follow me on TikTok, the handle @WebsiteLandlord. It's all one word, Website Landlord.

That's such a good name.

Yeah, so that's such a good name. RentLocalsites.com and Website Landlord, two ways to find me. All right. And you could DM me if you have questions also.

Thank you, Kyle.

Thanks so much, Chris. And yeah, be in touch.

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