This Will Prevent You From Scaling Your Lead Generation

So today we are going to bring your attention to, and hopefully solve one of the biggest hidden problems in a B2B service-based business. You see this all the time with freelancers, agencies, courses, consultants, all of that kind of stuff. And most people do not know that this problem exists, but Even if you don't, like a truly terrible situation to be in. And it's one of those situations where you intuitively know that something's not right and that there is a fundamental problem and it shows up in multiple areas of your business, but you just can't quite put your finger on it. And I really don't hear of anyone talking about this. And you know, that probably explains a lot. And the simple truth is that unless you're essentially able to copy and paste results between your client, like whenever you get a new client, it is going to become exponentially harder to scale. And we're going to talk about that in depth in this video, but we need to go over some theory first for it to really make sense. So in any service-based business, or I guess you could probably say any business or 90% of businesses, there are 3 main parts, right? There's marketing, there's sales, and there's fulfillment. There's pretty much always going to be marketing and fulfillment. A lot of the time there won't be sales depending on kind of what you're selling. If it's low ticket or it's like an e-commerce product or something like that, maybe not sales, but there's always going to be marketing and fulfillment. And of these 3 constraints, we're going to treat them like as if all 3 exist for the purposes of this lesson. Then one of them is always going to be the worst one. They could all be bad. They could all be good, but no matter what situation, one will always be the worst, right? And that will be the main constraint. And this comes from something called the Theory of Constraints. It's an old school book and an old school essay that really is coming around again. And basically the theory states that any system or any process or anything is only as strong as its most limiting part and speeding up the non-bottleneck areas that aren't really the main constraint do not really increase the total output. So basically what that is saying is that even if your marketing is a 10 out of 10 and your sales is a 10 out of 10, if your fulfillment is a 2 out of 10, then your entire business will also be, or be performing at a 2 out of 10 level. This is a very big And a very real problem when growing any business, especially marketing agencies and other similar, you know, professional services businesses. So based on my experience, and I think almost everybody would agree with me, for most businesses in general, the constraint is usually marketing. They can obviously do their service, you know, fulfill what it is. And then if they can actually get people on the phone. As in like a sales call, they usually can do okay, but most businesses just can't really book calls consistently or really scale the volume of calls on demand. And this is true for, you know, almost every business, right? They say that 9% of people in the United States are business owners. Most of those are single-member kind of LLCs or mostly just like a, like a solopreneur type thing. They also say about 4% of businesses can't get to, or only 4% of businesses get to $1 million per year in revenue. So we kind of say that for 96% of businesses, you know, marketing is the constraint, right? They can take all the calls themselves under $1 million per year. They can fulfill with, you know, themselves plus 1 or 2 or maybe 3 employees. So it is really marketing, isn't it? And that problem is they don't really have a marketing system like the one we preach on this channel. They don't have an ecosystem that they can push people through that will, you know, drive traffic, then capture, nurture, and qualify leads, and then have different offers to different people depending on where they are in the funnel. Because when you do have a system like that, eventually the constraint switches from marketing to fulfillment. And believe it or not, the primary reason that you should choose an industry or a niche or an ICP or an avatar, like whatever you're going to refer to it to as, is not really due to marketing and actually client acquisition. You primarily want to choose an industry and a niche for fulfillment purposes. And, you know, a lot of people, and this is very true, they'll say you need to choose a an industry, right? Because you need to be known as, you know, the email guy or the newsletter guy or the, you know, e-com accounting guy or whatever. And this is true. Like being in an industry does make it easier for you to get clients and you'll become known as the person for that industry and all your messaging and marketing and your assets are pointed towards that one thing. But once you get past the beginner stages, and we're going to just say, I don't even know that there's a revenue level here, but once you just figure out, you know, cold email, or you figure out content, or you figure out paid ads for the first time, eventually getting clients is no longer the main constraint. And, you know, if we go back to 96% of businesses never get to $1 million per year, and we just simplify and just blanket say that once you get to $1 million a year, Like, or talk about that stage, the constraint actually usually will switch from marketing to fulfillment. And this only gets more complicated as you scale. How do you fulfill for people while actually maintaining quality and actually getting them the results as you get more and more clients? Because as you get more and more clients, you're obviously going to need more and more people to do that, right? To do the actual work. But like, really, if you're in business long enough and you're not just kind of some low effort, you know, weirdo, I guess you could say, like there is a time for every business where eventually your marketing is going to start to work. And when you refine it and you refine it and you refine it, booking calls eventually becomes like as effortless as tying your shoes would be in the morning. And that's hard to believe for, let's just say those 96% of people who haven't got to a million a year yet or something of that nature. And it's very hard to believe, but it is true. And like, this is not really that hard to conceptualize in my opinion either. Like eventually you will have tweaked your offer enough. You're going to found some ads that worked to get to the right people. You're going to like do different iterations of your landing page and VSL. And I think that most people can just like see how, you know, that is going to be the case, but it is still hard to accept and still it kind of like happens to you, but eventually your marketing is going to get good enough where fulfillment actually becomes this next big constraint and maintaining that quality of work and results as your team size goes from, you know, 1 person to 3 people, 3 people to 10 people, 10 people to 50 people and so on. And as you, as the founder, get like more and more detached, or you have more and more layers between you and the person actually doing the work, it's kind of like the time period where you really can book calls on demand and you're growing before you can actually hire, or it would actually make sense to Have a COO type person. Like sometimes in this area, the constraint could be sales, but I would say that's not usually the case. Can be, but on average, it's nowhere near as difficult to hire 1 or 2 closers and train them up, even just like sheer dumb luck or sheer volume game, as it is to maintain quality when you go from something like 10 clients to 50 to 100 or 1,000, for example. So like the question becomes, how do you maintain quality? And this is where the concept of copy and paste results and kind of the core of this video is actually about. So I'm going to basically present you the actual solution here. As far as I see it, you can come to your own conclusions, but you should keep in mind that this solution is not going to be an easy fit for like a lot of people watching this video. And many people would have to redesign their entire business or their entire service to make it fit into this framework. And that will be possible for a lot of people. And hopefully I can do a good enough job of laying out the case where you really believe that you should do that because you should. I'm not trying to mislead you or anything, but there's a lot of people who are watching this that will not really have the opportunity to do this, but just based on how their business works, either it doesn't really work like that. really possible, or they're just too big and they're just too deep in their business where, you know, this would be a good idea, but they're already like too established where I probably wouldn't recommend you do this. So basically, if that, you know, if you're already too established, you're already at the $3 million, $5 million, $10 million, $25 million, even more revenue, like a lot of people are watching my videos are, there are no easy answers there. If you already have the business, I would not burn it down or get discouraged or do anything of this nature. What I would do in that situation is I'd simply recognize that scaling fulfillment is just going to be harder for you. And that does not make it impossible. It just makes it much harder. And that is what it is, right? At least by watching this video, you'll know why it's hard. Because a lot of people, it feels harder. It feels messed up, but they just can't put their finger on it. So at least you'll be aware of why it is. So difficult. So in any case, like how we scale fulfillment, because, you know, this channel is all about lead gen and eventually we can't generate more leads if we can't fulfill on them, is by being able to copy and paste client results. Now, what the hell does that even mean? Copy and pasting results. It basically means that we need to choose an industry where the work we do for every client is completely standardized and in a very real way. Not just like a clickbait title for the video or, you know, some way to explain it, but in a very real way, whenever we get a new client, we can just clone all the assets, change the name, logo, and website, hit publish, and we'll have a very, very, very high degree of certainty that they're going to get the same results as all of other clients. And I don't think that is particularly difficult to understand how that would help you scale fulfillment, you know, copy and paste, boom. Fulfilled. Sounds pretty awesome. And I think that's easy to conceptualize, but maybe you're, as you're watching it right now, like you might be a little bit skeptical in identifying under what conditions that like that is actually possible. And to understand like how this would work, we really need to understand what I call industries versus non-industries. And To identify your path forward, to me, you're basically going to identify whether you're in what I'm going to refer to as a real industry versus you're in what I'm going to refer to as a non-industry. So to understand what a real industry is versus a non-industry, we basically need to just explain one of them. And then the opposite is going to be true for the other one. So let's talk about non-industries. So quite simply, there are a lot of industries that look like an industry when you're kind of on the outside or even when you're in them, but they're actually not. Right. And there is, this is basically true or basically the case because every client in these non-industries will have almost nothing in common with each other in terms of the fulfillment that you're actually going to do for them. And that is what precisely the thing that makes it so tough to scale fulfillment. Some great examples of this, e-commerce, SaaS, agencies, small businesses, there's local businesses. If you're going to do like home services, if you're going to do like roofing and home services, that's a real industry. But if you're just going to do home services in general, it's a tough one. Coaches, consultants, info products, like all of these kinds of stuff. There are many more. And let's take Let's just use e-commerce for an example, because we don't need to do examples for all of them. And it's not because I want to pick on e-commerce or it's because it's any worse than all of these, but I've grown and sold 3 e-commerce agencies in my life. And I know the industry well. And the fact that it is what I would consider to be a non-industry is the primary reason that I am no longer in e-commerce and switched to lead gen many years ago. So let's pretend here for the sake of argument. That we have a Facebook ad agency that serves e-commerce brands, just like the media buying, creative, all that stuff. Nothing really fancy or like out of the ordinary. So what is the problem with this? And like, can you guess what it is? But just before I even go, it like, that's a good litmus test. If you have absolutely no clue what the problem is, you know, probably watch even closer, but if you have absolutely no idea what the problem is, Then like you need to watch this. So let's develop the scenario a bit further. Let's just say for the sake of argument that our agency has 10 clients. We have a collagen brand, a beef jerky brand, beverages, home goods, apparel, boat covers, camping equipment, paddle rackets, green supplements, protein powder. It doesn't really matter what these clients are, but let's just have these there. And basically like these are all brands, right? They're all clients that would be considered in the e-commerce industry, right? So again, like, what is the problem here? Maybe I'll give you like 5 seconds to try to identify this. If you don't know, the problem here is that none of these brands slash clients have anything in common with each other in terms of the fulfillment you do, other than the fact they are on Shopify and they're just selling products directly to consumers. Like other than that, nothing, there's no copy and paste ability potential here. And that is incredibly significant and that must be understood. So like how this plays out when you are serving a non-industry like e-commerce, and I've spent years and years and years in e-commerce, is that in our example, if you found a winning Facebook ad creative or message or angle, or let's just Also say that we do landing pages in our theoretical agency. If we found these that worked for, worked really well for our collagen brand client, like they are so happy with it. You cut their CPA in half. Yay. You know, like everything is amazing. The problem is that we cannot just simply take that ad or that landing page and recreate it for our boat cover client or our home goods client or our apparel client. Right? It just like doesn't work that way. The most fucked up part, in my opinion, is that you likely can't even take that winning collagen ad and just use it for a different collagen client that you have because everybody's packaging is different. Everybody's brand guidelines are different. Everybody's ICP is different. Everybody's, you know, unique mechanism for their product is different and so on. Probably wouldn't even work if you just copy and pasted it for the same Collagen or like the same type of brand collagen. So in other words, we basically absolutely cannot copy and paste our results from client to client in non-industries. Like I can't just run a collagen ad for a boat cover. Like that would make no sense. It doesn't even matter. But like, I honestly could not even take the script or take the angle and basically recreate that. For a boat cover or for home goods or for apparel and expect the same result. And this fact negatively impacts our business in several ways. We're just going to get less consistent results for every client. It's not going to work every time, which means our churn will be higher and our negative word of mouth might be greater. We'll, we'll need much higher skilled and therefore much more expensive labor to even try to make it work with No guarantees of results, which shrinks our margin. It will also take us longer to get the client results as everything is custom for every client, which ruins our time to first value. And we could probably list 10 or 15 more things that are just other minor problems or slight variations of the ones above, but those are the big ones. And it's not just about e-commerce. It's not just about Facebook ads. It'll be every service you could possibly provide for Every non-industry that suffers from this fact. We could just take the above and just switch it to SaaS. Every SaaS has nothing in common. One does, you know, bookkeeping, one does underwriting, one is a productivity app, one is an AI agent, one is for, you know, to help cleaning companies schedule appointments. Like you can't just, if you had a winner, you can't just automatically apply it. Same thing with home services. Same thing with just run-of-the-mill local small businesses, you know, anything with agencies. That's a really big one. Coaches and consultants. Every coach is different, you know, tough. So let's do an example here of an industry versus a non-industry. So we're going to go non-industry, that e-commerce, and then we're going to go into real industry of roofing, for example. And roofing is a real industry. Home service is not because if we Just had the same ads for, you know, we couldn't copy and paste our exact same setup for roofers versus HVAC versus siding versus windows. Like, doesn't really work that way. But if we just did roofing only, then it does, right? I would consider home services to be a non-industry in every case. Maybe something like SEO would be an exception, but it is too broad. But if we did something with roofers only, we can most certainly copy and paste results. So let's say that we have a very similar agency here, but we do it for roofing instead of e-commerce. We do very much the same things, the Facebook ads, the funnel, the appointment setting, and so on. And we want to do it the same kind of agency in this as we did in the e-commerce, just to try and compare apples to apples as best we can. Anyways, it's not really perfect. You don't do really do appointment setting in ecommerce, for example, but why does this setup work for roofers and not ecommerce brands? Right. And again, let me just pause for 5 seconds so you can tell me. It works because you can very much copy and paste the results between roofers. If I find, let's just say 10 winning Facebook ads. Even one winning landing page and a winning workflow to book calls onto my clients' calendars. Let's just say I got my first roofing client in Los Angeles, perfected this system. I can very much simply clone the ads, the funnel, the appointment setting script, you know, change the name, logo, and website, and basically do the exact same thing for someone in San Diego versus San Francisco and Los Angeles and New York City and Tampa and Miami and Detroit and Cleveland and Columbus. And, you know, Orlando, Jacksonville, basically I could have basically a roofer in every single city across the entire United States with this system. And I could expect, all I do is change the name, logo, and domain, can expect to see the exact same results. And that is because it's standardized and it's standardized because it is a real industry. And if we go back to The e-commerce example, again, if I find that winning collagen ad, I literally cannot just run that ad for beef jerky. You know, that ad is not selling beef jerky. That would make no sense and I would just get instantly fired. But even so, I could not even take that same angle or messaging or format or script and even try to rewrite it for beef jerky because it's not guaranteed to work. Right. And that exactly Right there is the problem that's usually hidden. And it's usually the thing that if you are in one of these non-industries, which so many people are, is the thing that you can't put your finger on. That is why it feels so difficult. And that is why a lot of the time these non-agencies don't scale to the same level of real industries. It's very rare to even see a $1 million a month e-com or SaaS agency. But I know people who do mid-8 figures, even low 9 figures in home services, law, insurance, lending, all that kind of stuff. And the reason they do that, in our example at least, is because when we find that stuff, in our example, it is basically guaranteed to work for the other roofers. And that is because every single service for every single client is identical. And that is the whole point and the overall basically lesson that we're trying to learn here. So if you are trying to evaluate, there is a magic question. Can I simply clone all my shit, put my new client's name on it, and expect it to work at least 90% of the time? The answer is yes. You're in an industry. If not, non-industry, right? And This is why things such as SaaS, info products, like that kind of stuff can be very desirable because you can scale very quickly because the fulfillment is just done for you, right? Kind of automatically, so to speak, assuming the SaaS and the info products are good, which is not usually a good assumption anyway, but if they were, Then once they crack marketing and maybe sales, if it's high ticket, there's almost no limit to how much they can scale very quickly too, because fulfillment is just taken care of. Right. And this is also the reason why some of the biggest industries are things like insurance, internet, phone, logistics, fast food franchises, like oil, all that kind of stuff. Because even though those are not like B2B professional services and the way that we talk about in this video and on this channel. Like a lot of the time in those, once the original sale is made, once the original, we'll call it setup or action is completed, they benefit from their own version of copy and paste results, don't they? So you make the SaaS once, you know, of course you update it and make it better, but you make the SaaS, you just send them through it, right? You build the info product or course or whatever once, then you send people through it. You know, someone sets up your internet for you and they just keep billing you over and over again. They don't really do anything after. Same with your phone, same with insurance, all that kind of stuff. Fast food franchise, once you kind of figure it out, right? And you have the right product, you have the right system, you just crank them out. Oil company, you know, once you find the oil and, you know, drill the well, I guess you kind of put it there. I know there's in all those industries. That's very oversimplified, but I think you very easy to understand the point that I'm making. So like, basically what we need, if we want to scale, is these copy and paste results. Can you do it without it? Of course. But if you think it's, if you just feel that your business is a lot harder than it probably should be based on how hard you work, how smart you are, how long you've been in it, This is probably what you're running into. And below here, I've made a chart with kind of an illustrative example of what can happen to your metrics when you provide, let's just say the same service for the same price with the same team in a real industry versus a non-industry. And it might seem shocking, but it is very true. And these results can be pretty ridiculous when they compound positively on themselves in a real industry. And this is just example, but it's not that far off from reality. So let's just say we're going to compare our roofing and our e-commerce company. Let's just say we charge $5,000 per month, right? Uh, very deli— like, you know, this might call like team-wise 70 hours or more in a month to fulfill the e-commerce because it's all specialized. It's all custom. You know, we have to basically pay a lot of money to our team to get it to work. Versus when you're just copy and pasting results, maybe 8 hours, you know, setup takes 1 to 2 hours at most. And then, you know, 6, 7 hours of maintenance, all included. The delivery cost of the labor on that 70 hours, $3,500, maybe an average of $50 per hour, because you're going to have your low paid, but you're also gonna have your high paid. The delivery cost of the labor for the roofing, you know, $600, even Just because you can actually pay people more and do less work and get more competent people as well. Other fulfillment costs, $500 versus $200. So like the total direct fulfillment costs for a lot of people are going to be $4,000 in e-commerce and then $800 in roofing. And look what that does to your profit margins, profit, gross profit of 20%, you know, versus 84%, monthly churn rate of 20% because all the results are so inconsistent and you churn everybody because it doesn't work all the time versus 8%. Because it always works. Average customer relationship, 5 months versus over a year. And that revenue LTV, $62K versus $25K. But most importantly, quality of life, terrible versus amazing. Imagine how stoked you would be if you could just copy and paste results, right? And just have it work over and over and over again. And that brings us to kind of the thing that we want to understand as to how this works so much better. It's faster, it's better, and it's cheaper. And basically we're usually able to provide faster results, which are cheaper to our clients and ourselves in terms of fulfillment costs. And in most cases, provide a better result with a worse team. And that is what makes the non-industry people cry, right? When everything is copy and pastable, so to speak, we can fulfill the service extremely quickly with lower skilled and lower paid labor. And because we get better results, we can usually charge more too. So layer that on top of the fact that you're going to get a good reputation because you get results, plenty of referrals, et cetera, and you're going to have so much more margin. to optimize and then scale your acquisition, you can really see how an e-commerce agency, even a good one, will be stuck at $200K, $300K, $400K per month for, you know, 5, 6, 7 years. And then you'll see like the people in my, you know, social circle where they scale their paper lead roofing company from $0 to $80 million in 2 years. It's because of this phenomenon. So if we have it like here, let's just say I made a little, a little graphic here, we have our ads and our landing page and our appointment setting. We're copy and pasting it between each client. All of the learnings are kind of shared between each client. Then we systematize it. Our SOPs, all of our tech and software are customized and built around this offer, all of our templates and assets. And then all of our hiring and fulfill— hiring and fulfillment training goes around it. And then it's also easier And we'll talk about it later because all of our closers are going to be trained on this offer too. So to make it possible, assuming we're in that real industry, we need offer standardization, especially the front-end offer that we're actually selling in our ads or through our outreach or whatever we're selling. If we have an upsell or some sort of recurring service that we do as well on top of this, it's quite frankly ideal if it's copy and pastable. But you're going to have a little bit of wiggle room there as the client already got the first result from you. You don't have any further acquisition costs and they already know, like, and trust you already. So it's going to be easier to get that result, even if it is a little bit customized, but preferably copy and paste. So like, why is that offer standardization so important? And there are many reasons. The first, like I said, is all of your tech, all of your AI, all of your processes, your SOPs, your workflows, your assets. You know, hiring, training, fulfillment, all that kind of stuff can be built and optimized around that single offer. Right. And that leads to what we'll call like heavy compounding learnings and improvements that again, you keep optimizing and it becomes even faster, even better, and even cheaper to do it over time. And you don't get that effect in a non-industry at all, because every new client, even though you're going to have like some process that you use, and I recognize that. But every client is really like essentially starting over from scratch. But because in this, because everything is built around your standardized offer, your fulfillment costs will actually usually go down over time as it becomes more and more optimized and your churn will usually go down over time as well as you get better and better at, which makes your LTV go up very, very big. So this system, the ability to copy and paste results does an amazing job To basically make sure that fulfillment doesn't become the main constraint of the business. And solving constraints is really like all there is to, all there is to it in business. But this process, this offer standardization does another thing too. And I touched on it a little, just a few seconds ago. It also helps make sure that sales is not the constraint because all of your sales hiring and training is basically based around this one offer. That you just sell every time. And you've sold this offer so much that you have essentially optimized the sales process and the pre-call process so much that all of your hiring, training, and the sales process itself is around selling this offer too. So a couple of things might happen here. Maybe even 3 things might happen. Number one, like you could get away with a lot lower, lower quality Sales reps or worse sales reps when this is the case. I wouldn't really recommend that, but you could. It doesn't matter to hire killers as much. Or if you hire good ones and you hire these killers, they will sell so much and they'll earn such high commissions that they'll brag to all of their other sales rep friends that instead of, you know, $10K, $20K, $30K on an offer, they're making $40K, $50K, $100K per month because they're just hammering this out. That now you are going to have an inbound stream of other elite sales reps basically begging to work for you. This ensures that sales is never the constraint, right? And basically on top of this, these sales reps are usually going to be much more effective and they're going to close at a much higher percentage or revenue per call or just total revenue or whatever you optimize for, because they know that service is going to work, just like, you know, because, you know, you're copy and pasting 90% plus success consistency, no matter how much of a piece of shit you or your sales reps are. Like, it is just very difficult to sell something that, you know, is a scam or that, you know, doesn't work or that, you know, has no value. And that's really the case in a lot of agency services, a lot of info products, a lot of software. A lot of insurance, like you just know that it's a piece of shit and makes it very difficult to sell just kind of no matter how much training they have. And that is not going to be the case here. It's going to be the opposite. The sales reps are going to go harder than ever because they're selling something that they actually feel good about. And when you stack this on top of them recruiting their other high-performing sales rep friends, or just the fact that the process is so optimized, you can throw an absolute retard in there. And they will close because it's just so optimized. Sales will almost never be your constraint ever again. And that is just not the case in non-industries such as e-commerce or SaaS for a few reasons. Number one, they have to learn so much nuance and they require so much more training because every single client is unique. Number 2, they're not going to have as much conviction as all of the results are inconsistent and they don't know it's going to work. And then 3, your sales reps in non-industries don't really earn that much commission due to, you know, everything we just talked about. So you don't get that flywheel and you don't get that natural recruiting of your sales reps are making $30K, $40K, $50K, $60K, $100K per month and basically bragging about it and other sales reps are trying to come to you. So like when you get this all set up, you basically create a positive flow flywheel in every area of the business, right? So in marketing, you're going to have more margin for testing and just more total budget for ads and more proof from great client results and more referrals and better reputation, which leads to more clients and so on and so on and so on. Sales reps earn more, which leads to easier recruitment. Sales reps have more conviction because they know it's going to work. Sales reps will become more effective because the process is so optimized. And show rate and close rate will be higher because of greater marketing spend, greater proof, greater effectiveness, greater optimization, and so on. And then for fulfillment, your churn will be lower because it's copy and pastable, more likely to get the result. You'll have higher prices because of more proof and better results, which will lead to high margin and enough margin to hire A-players, which will make the results even better. And then you're also going to have enough margin to reinvest in custom AI, custom tech, To make the process even better, just break out the workflow into a thousand different pieces. What can I build custom tech around? And it is a really, really incredible flywheel that spirals out of control. And when someone's Chad scaling and you don't even know what's or understand what's going on, it's usually they've created this in their business, either intentionally or unintentionally. And then the final possible constraint that. Isn't really marketing, sales, or fulfillment is your unit economics. And usually if you've created this positive flywheel, this is more than going to take care of itself automatically, but it's worth going over just so we know what's going on. So eventually it's so easy to book calls. You'll be fulfilling all your clients with high margin, low churn, and you'll have an unlimited supply of sales reps begging to work for you. Sounds like a pretty amazing position to be in. But in a very real sense, there's one final constraint to overcome. And like I said, if you got into this stage, you probably overcame it, even though you didn't know it was there and you didn't really intentionally do it. And that is you need to collect at least 2 times as much cash upfront as it costs you to acquire and fulfill that client. Right. And I have a chart here. So when this happens on your front-end offer, let's just use some money. Like let's use some real numbers as an example, because we need to understand and achieve this if we really want to Chad scale, we want to Chad Rabbit. So let's just say we collect $5,000 after fees and our acquisition cost was $2,000 and the fulfillment costs were $500. So you tell on one side, we basically have $5,000. On the other side, we basically have $2,500. That is 2x, right? If we had $7,500 and $2,500, that would be 3x. It would be great if you had a million x, right? But at least 2x. So most people will never get anywhere near this. And it's almost impossible to do so if you are in a non-industry, because your prices don't get high enough because you don't have too much conviction that you're going to get the results and you're Fulfillment costs are too expensive because everything requires high-skilled labor. But the 2x is so key because the final thing, because we've solved all of the constraints by being in a real industry already, but this is a constraint that has to do with mathematics and cash because there's a big difference between being profitable and being cash flow positive, right? A lot of the time, if your customer acquisition cost is $3,000 and your contract value is $30,000, but it's actually $2,500 per month for 12 months. That's technically very profitable, but that is cash flow negative technically, right? So if we're collecting at least 2x cash upfront or more, we have the money instantly to pay ourselves back for acquiring that customer, the $2,000. So let's just say we're collecting that $5,000 upfront. We have $2,000 to pay ourselves back for the Facebook ads, for the setting costs, for the closing costs, like you name it. Then we have that $500 to fulfill the client. And then we have $2,500 left still. So we can take that $2,500, spend $2,000 to pay ourselves back for the next client and $500 to fulfill that client. But then we'll also get $5,000 from that client to go continue the process, right? That is what we need to achieve. And that's the final piece of the problem, like the puzzle. Marketing's no longer the constraint. Fulfillment's not the constraint. We copy and paste. Sales is not the constraint. We just have elite sales reps begging to work from us. And now we have the cash to just over and over. Once you've basically achieved that, in theory, you have the perfect business that could probably be sold for like $20 billion. I'm not saying that you're going to achieve this. This is like the ultimate theoretical, but we're going to try to get as close to that as possible. So if you achieve that, in theory, you are constraint-free. There's no limit to how hard you can scale. Like reality is going to be different, of course, but to achieve this, we need offer standardization. And copy and paste fulfillment, or it's basically impossible. Again, if we're in a non-industry and we're really established, don't change it. Just recognize this as a fact and just kind of move on with your life. So hope you learned something in this video and I'll see you next time.