$43M CEO Shares EVERYTHING...

This year my business was valued over $43 million. The franchise I started will do over $75 million in revenue this year, and the software I started will process over $1 million per day through the platform. My name is Mike Andes, and in this video I will show you how I turn YouTube videos into a company with over 120 employees. So I'm going to use the whiteboard and I'm going to walk you through exactly how I make money. Now, this was inspired from Alex Hormozi, who also did the exact same thing, showing how acquisition.com made money. If he can, at his size and scale, put that much of a target on his back by sharing everything, I figured I should do the same thing. There are a lot of slimy actors online. I know it gets a bad rap, especially any sort of alternative education. And so I wanna be straightforward and honest of how I make money from top to bottom, knowing that that does open me up for some people to say negative stuff, but that's okay. So we turn free content into attention or eyeballs via long-form video, short-form video, Instagram, Facebook, YouTube, you name it. Now, from an impact perspective, over here we have millions of views across all platforms, somewhere between 50 and 100 million views per year across all channels. Now, the objective of all of this, the mission in doing this entire process is to make home service business owners rich. And I've started home services since I was 11 years old, pushing a lawnmower, and I feel like that's the industry I wanna have the most impact on. And as someone descends this funnel, I'm able to have more impact and I'm able to make them more money. And whether or not they just interact with the free content or they come all the way down to the bottom funnel, I don't really care. The objective is the same, is to make home service business owners rich. Given the systems, given the education required to do so. And so the next stage of the funnel here is courses, and this would also be free lead magnets, we call 'em. So these are all free, we don't make any money, and at this stage of the funnel, this is really done by you, meaning you are, doing the work yourself. I'm not actually involved in your business. I don't know your name. If you watch a view, you know, watch a video or subscribe, I don't usually know your name. If you go get a course at MikeAndes.com, there are a whole bunch of courses. All of them are free. You can learn all about the workshop, how to fix your off-season, how to start a lawn care business, the MBA for Entrepreneurs, which is hundreds of videos I've made that I learned from getting my master's in business. I just made it applicable to home services. And so this is thousands of people every single year. So you'll see as we go down here, like the funnel is like very quickly narrows and this is thousands. So every single year, thousands of people are going to get the free courses, they're gonna get the lead magnets. And again, this is, if I write this over here, $0. So I don't make any money. Technically, if this was all I did, I would make exactly $0.00. The next thing that we do is the Turnaround Show. The Turnaround Show is where I go out and I help struggling businesses, and in 6 weeks we try to help them go from not making money to making more money. And usually this is only about 20 to 30 people that we will go help. So over here, impact number of people. So 20 to 30 people every year, I will fly out the team, we will make a video, and we spend 6 weeks editing it down, and trying to make sure it's like the best content for home service businesses on the internet. So that again though is free. We don't make a single dollar. And if you talk to anyone that's ever done a turnaround, we don't promote, I don't try to sell them on anything. There's no other coaching level I'm trying to get them into. We don't talk about anything besides helping their business. So again, I don't make any money from that. Now this is the line where things change a little bit. 'Cause now it's going to switch for, instead of done by you, it's going to be done with you. And so this is where I'm going to get involved more with the businesses and put more skin in the game and hopefully make them a whole lot more money. So the next stage would be if you come to conference. So this is the Blue Collar Summit. We're gonna have this next January. But any sort of conference, this is usually going to be about 500 people or so. Just say 500. Or so people, attendees. And in terms of revenue, we're gonna make, let's just call it $1,000, and it's one time. So $1,000, one time. And I'll be the first to say, we lose money every time we do in-person events. A Blue Collar Summit, as it is called, we lose hundreds of thousands of dollars. It's mostly to bring the audience together that is further down on this stack. Further down the funnel, we want to bring them together. That's what it's all about. But we don't make money. But in terms of revenue, we make $1,000, usually one time. The next thing that's going to happen is HomeWorks. This is the software that I have built. It is Home.Works and also pay for performance software. So this would be the software side of things. At this stage, we have about 1,400 to 1,500. Let's just say 1,500. Members, and this is growing, but 1,500 members inside of HomeWorks and P4P Software. This is the software side of things. And each month I'm usually making right around, let's just call it $499 per month. Okay, that's revenue. This is where things change because from a money perspective, I don't care about one-time revenue. I only care about long-term value and recurring revenue. And so we have about right now, we're trying to trying to solve this problem, but we have about 3% churn monthly. So if you do the math on this, this is about $16,000 lifetime value. So over the course of the average member at HomeWorks, we make $16,000 from that. My hope is that over those course of the few years, we make them hundreds of thousand dollars revenue and in profit. We're trying to improve dramatically the churn because that would make the lifetime value dramatically higher. How do we do that? We have better product market fit. We build the features. For people to continue to scale their locations past $3 million. But right now, that is the lifetime value per customer at HomeWorks is $16,000. This is where we move to the next stage, which is done for you. This is where I have more skin in the game. I'm taking more control and hopefully making a whole lot more money for our customers. And right now, we have 1,000 customers that we have built websites for. And so this is home service web design and lawn care web design. So whether you're doing home services, home service web design, or if in the green industry, lawn care web design, we charge $499 per month. And because we usually get about 80% more leads for our average customer over the course of the first 12 months, we don't have a lot of churn. Uh, we have a 1% monthly churn from that. And that's really good for when it comes to Webdine, especially because we don't have a contract and people can leave anytime. But we drive so many leads and like we're super confident on like being able to get great SEO, great Google ranking, great AEO for AI. 1% churn is fantastic. What that means is if you do the math, that's about a $45,000 lifetime value. All right, so a lot of lifetime value because the customers stick. They do not leave. They can leave. There's no contract. There's unlimited changes. It's just a monthly, they can leave after 6 months if they don't think it's valuable to them. But the vast majority stick with it because they see it's such a big jump in leads. And so we keep people for a long time. $45,000, like, oh, that's a lot for a website. We're doing unlimited changes. So as new seasons happen, as new offers happen, we make updates to the sites. That's all very active in terms of also the SEO making adjustments. That's the lifetime value of those customers going to the next level. This would be the franchise. So this would be Augusta Lawn Care. We now have over 200 locations and some of those locations, they will put 2 locations together and have a bigger territory. So it's just under 200 in terms of actual owners, but in terms of actual territories, it's over 220. So at the franchise level, there's about, let's just call it 150 to 200 owners that are inside of Augusta. And so at this stage, the reason I went here is because I was doing content. We were building out websites for people, but people would still not adopt the systems that I talked about, whether they pay for performance, estimate videos, automations, answering the phone, etc. By having the franchise now, I wear the same uniform as all of them and we have directly aligned incentives, which is as long as you stay in business, you pay a flat monthly fee. We do not take a royalty. I don't care if you make $200,000 in annual revenue or $3 million. In annual revenue, you're gonna pay the same exact monthly fee. Now for Augusta, this is $1,600 per month. Okay, $1,600 per month. Now inside of that, that includes a whole bunch of stuff. They get access to P4P software, they get a whole website built for them, they get a second website for Augusta Lights, they get all the training, they also get access to Command Center, et cetera. So inside of that, there's a lot of bundled things, but joining the franchise is gonna cost them $1,600 per month. Now this one's very sticky. Uh, we had a Net Promoter Score of over 80 last month, and so this is 0.5% churn, and this is going down. Our goal is to get this like down to 0.3% or 0.4%, uh, monthly churn. And so if you run the math on this, you can quickly come to the fact that's a $320,000 lifetime value. So lots of lifetime value, uh, because churn is low, they're making more money, they're usually getting more locations, they're expanding. And usually after month— after years 3 and 4, they They put into profit mode and they start to make a lot of cash. Over the course of their 10-year tenure, I should be able to make $5 to $8 million per location with them. So this amount is relatively low compared to the impact that we can have and growing their business, ideally on systems and make it much more profitable and allowing them to have copy and paste inside of their model where they have multiple locations, GMs that are trained and get support from command center so the owner can have the business run without them. And this year the franchise will probably do just over $75 million in annual revenue. So our cut relative to that is relatively small 'cause we don't take a royalty. And so for most franchisors, they would charge somewhere between 6 and 10% of top line revenue. I feel like that is a perverse incentive to force the franchisees to grow top line revenue 'cause I get a cut of it. Instead we have a flat monthly rate. So my objective is to keep them in business and make them profitable for the long term and make it a sustainable model that allows technicians to rise up inside the ranks and become general managers. That's my incentive, and that's how I make more money, not just pumping their top-line revenue and forcing them to spend a bunch of money on ads. All right, the next level is also for the franchise, and this is where we're able to increase the lifetime value by offering two things: Command Center plus Augusta Leads. So these are monthly optional services that the franchisees, or owners, inside of Augusta are able to take take advantage of, and about 80% of them do. So let's just call it 150 owners. Again, I'm just on this side just tracking how many people are involved. You can see we go from millions down to now we're only impacting 150. CommandSender answers all their calls, does their emails, text messages, payroll, all the backend admin stuff they're able to handle for the owners of Augusta. And that is a per-minute basis. So on average, we can say that's about, you know, $500 to $1,000 a month. Let's just call it that. On average. So let's call it $1,000 per month. And that's just going to get tacked on to whatever they're getting charged monthly from the franchisor. And so this $1,000 a month that I'm averaging is going to include them having access to Command Center for all the admin work. But then Augusta Leads will also run all of their ads for them. And so it's, it's very cheap compared to other agencies because we're able to have the scale across all the locations and get all the data of what's working. So Google Ads, Facebook Ads, anything to do with local service ads, we run all of those for them. It's completely optional if they want to use it. There's no contracts or anything like that. And we're actually working on having a program when they start a new location, they actually get a guaranteed 100 paying recurring customers using the Augusta Leads program. And so that's an optional— let's just call it an upsell. It isn't super profitable. I'll be honest with you, it is mostly to facilitate the owners not having to get in the weeds of getting long-term leases for offices, training office people, or trying to find an agency that does a half-decent job of getting them more customers. And so this is much more of a constraint remover, not a profit center for the business when it comes to Command Center. Now there's one more level, and some of you may have heard me talk about this a little bit, and that is the Holdco. And this is about 30 investors, Now all these quote investors are owners of Augusta Lawn Care inside the franchise. A couple years ago we made a one-time offer for them to join and get what's called a SAFE, a Standard Agreement for Future Equity, where they would in the future when we get, go public, they would be able to participate in the equity side of the business. And so this is only 30 people. Again, we're down from millions, but this is the holdco investors. A couple of years ago, we brought together the franchise, the media, and the software together into one holdco, a C corporation. And so they are basically investing in that. And there's really not a lot of liquidity. They can't buy and sell shares. But down the road, our objective is to take the company public via IPO, so initial public offering. So we make the company a public company and they would get equity. And so you can see here, this is exactly how we make money, right from free content getting courses that are free. All that is free. Lead magnets, for example, like lawninstantquotemowing.com, homeserviceaudit.com. These are all free lead magnets. Turnarounds are free as well. If someone wants to come to a conference, it's a one-time revenue injection. We lose money on that, by the way. Ha! HomeWorks and P4P, those are software. Again, we're trying to improve that. We're trying to make sure that as companies grow, they don't have to leave because there's more powerful features for them. Home service web design, again, we're trying to get customers for people. This is when we are doing it for them. And my objective is that as I get more money from someone, I am able to have a bigger impact on their business. And where someone wants to slot in here is really up to them. They self-select. Do I just wanna watch the content? Do I wanna give my email and get in the courses, get the free lead magnets, be able to use the forms, et cetera? Do they want me to come out and help them in their business? And a coaching level, it'd be the turnarounds, or just come one time to a conference. Regardless of where they want to come at in this funnel, my objective is to help them grow their business. And the closer they get to me, hopefully the more impact I can have. So this is the overall way how I make money, whether it is you doing it by yourself, we are doing it with you, or we're doing it for you. The objective is to make home service business owners rich. That's the overall media mission. When it comes to the franchise, our goal is to change the level of professionalism in the landscaping industry. And I feel I can do that by having this very narrow impact on just the owners and scaling the brand. And then last but not least, on the software side, at HomeWorks, our goal is to help home service business owners grow without breaking and having the systems in sales, operations, and admin like a strong chain that when times get tough, it holds. And if you're asking what the very long-term goal, like why are we going public? It is essentially to have the capital to be able to compound this far more in the future, and we'll offer more to owners, especially at the free level, 'cause that's where I feel like I can get the most impact and the most reach, but we need capital to do that. Specifically around software, robotics, and where I feel like we're going in home services, by having the public markets, we'll be able to tap into more capital to be able to have a bigger impact.