I Read $100M Money Models...Here’s How It Actually Works for Home Service Businesses

Most home service businesses don't actually know how to create offers that generates leads. In this book, $100,000,000 Money Models, Alex Hormozy lays out four core offers that every business needs to grow. In this video, I'm going to take those four core offers and break down every single step of how you implement it in your home service business. The first money model that he recommends is attraction offers, and attraction offers for home service businesses in particular. There's four of them. So the first one we're going to talk about is his giveaways. Now, if you don't do giveaways for your home service business, you're probably missing out at your home shows. You should do giveaways, and even randomly, you should do giveaways. Here's a couple examples. So an H Vac company that we work with did an oldest H Vac contest where for an entire month they were going to give away an oldest H Vac unit to someone else. So they're going to replace the unit for someone you have to submit for the giveaway and you're going to win this thing. So they had 30 entries that came in we which is basically 30 replacement leads. And then they gave away one H vac unit. And then the second place winner, that person they reach out to and maybe they gave them $1,000 off a new replacement or they gave them a free service agreement to make sure that if it breaks down, then they can service it. So that's how you do an H Vac. I would recommend in any business remodeling, give away your initial sketch or architect drawing, three Ds. If you do roofing contest, gutter cleaning, Give away free gutter cleaning for the year to maintain a house. Whatever it is, a giveaway is a great way to generate leads. And the most important thing is that the first place person wins, second place person wins, and second place is for everybody. Now he kicks it up a notch by saying if you do this giveaway, then you can do two giveaways. You can say the first place, the first prize winner that wins. If you refer that person and they win, then you both win. What this allows them to do is to one, enter to the drawing, but two, share it with other people so that other people enter as well. Then you give away two things. Really good way to kick this up. Roofing contest, oldest roof in town is a really good one. Or give away a new roof to troops is one that you hear a lot of lawn care sweep takes. Submit your lawn for free. 12 months miracle. Makeover free season of lawn fertilization for one lucky neighborhood. With entries collected via social media shares, any type of giveaway for your business would crush it. I would recommend doing maybe one or two giveaways a year and make it a big deal. Emails, ads, social content, even going to the extent with this oldest H Vac contest. When they did it, we actually pulled a list of all of the local news outlets and we said, hey, we're doing this big AC contest where we're giving something away. Maybe it'd be a good story for you to feature and talk about a local business that's giving things away to help the local community. This will give you some local pr, some buzz. There's a bunch of ways to leverage this, but it's a really great way to drum up leads very, very quickly. One last thing on this. If you're spending, let's say $100 a lead and that's $1,000 and it's 10, you want 10 leads, that's $1,000. If you could give away something for $1,000 and get 20 leads, well, now you cut your cost per lead in half. This is how I would look at giveaways is that if you do a service that's a thousand or $2,000, think about your cost per lead and what it will cost you and how many leads that you can get with the giveaway. And it's just a reframing of, of what you're spending money on to get leads. Really good way to look at this. All right. The second attraction offer that he has is called a decoy offer. Most home service business already do this. Free leak detection. If you're a plumber, $29 service call. If you're an H Vac company instead of $99 service, call Pest Control decoy. We do a free entry point inspection. Whatever it is, we do a free first inspection or a discounted, very heavily discounted decoy offer. Basically, we're going to come in and we're going to sell you something, but it's an offer to get out there and look at your stuff. This one, not much to say on that. The third attraction offer is to buy X, get Y free. For gutter cleaning. Buy gutter guards, get one free gutter guard, gutter cleaning, window cleaning, book a full home exterior window cleaning, get free interior cleaning of your windows. Carpet cleaning, clean two rooms, get a hallway clean, H Vac, get new humidifier when you get a new furnace. All these things are good attraction offers to bring people into the funnel. I Would recommend running this probably two or three times a year to say, hey, if you get this, then you get this. These work really good in email newsletters. You send out a blast to everyone and you say, hey, if you get this done, then you also get this free really nice attraction offer up front. All right, and the last one, great in the shoulder season for cash flow is your pay less now or pay more later. All right, so let's say you're a roofing company. You could get a roof replacement and you could pay $12,000 over 12 months. Or you could save $1,000 and pay $11,000 up front. The way that we really see this work as well in lawn care is let's say you do lawn care packages. So seasonal aeration fertilization package is 200 bucks a month. Also, they'll cut your grass, whatever. But if you pay $1,500 now in January or February, then it's a discounted amount. You get a bunch of cash flow coming in for January and you basically have all of your work already lined up for the year. Everything else is just gravy on top. Same thing with gutter cleaning, which this would kill. You should get two gutter cleanings fall and spring. So usually that's $450 each, which is about $900 total. Well, if you were to call all your people in January and say, hey, we're actually setting people up because we were so busy last year where Instead of paying 450 for each cleaning, you just pay $750 now. And we're going to schedule you for fall and spring. So that way you're on the books and save you some money up front. I'm telling you, it will kill great in shoulder season for cash flow. Also really good to make sure that your book, your calendars are full going into the rest of the year. So those are the four attraction offers. The way that I would recommend doing this is every single month I would have a different attraction offer that I'm running some giveaways here, some buy X, get Y over here, different promos to attract people in. And these are things that you can run ads on, you can create content on, you can do email newsletters on. This is going to attract people in. Now the second offer inside of the money models is what's called upsell offers. And I put a caveat here because any good home service business is already doing three of these four. But the last one I guarantee is going to crush. I guarantee you it's going to crush so we'll just quickly go through the first three and then we'll get to the fourth one. So the first one is upsell. Classic upsell. You can't have a new AC unit without a UV light or surge protector. Protects the system from power spikes. Plumbing. You can't have a new hot water heater without a safety expansion tank. Ensure system longevity. We already do this because it's natural in home service to know how to sell. Your technicians are going to have to upsell certain things. This is basically like you can't have this without this. Already we're doing this menu. Upsells already do this. Good, better, best. Hey, you probably don't need this one, but this one is going to be the best one for you based off of what you're explaining to me and prescribing certain things. We already do this because we're the experts from a home Service perspective. Number three anchor upsells. Hey, you could get a $20,000 fully zoned H Vac system or you just want to do this one replacement. This one's going to be 12,000. If you just want a budget option, 7,000 and you're good to go. We already do all this stuff. We anchor the top line price and then we downsell from there. But the fourth one, this one's the one that's going to crush rollover upsells. I'm telling you, y' all gotta do this. Okay, so let's say you have H Vac customer on a $250 a year maintenance plan. After three years, that's $750. Instead of running a promo to get $750 off something, say, hey, we're going to give you a credit of $750 towards a new AC unit. So we're basically going to credit you back your maintenance agreements and we're going to use it towards a new hot water heater, new generator, new furnace, or something else. It's basically like running a $750 off promo, but you're just reframing it in the customer's mind that they already spent this money, so now they're just rolling it into a bigger ticket sale. I'm telling you, it's good gutter cleaning. Same thing. You credit the customer back their last gutter cleaning. So the last gutter cleaning was 450 bucks. Now when you get a gutter cleaning, gutter guards, downspout cleaning, and all these other things, like a big upsell, we're basically going to credit you back your last gutter cleaning to get all this other stuff done. The rollover upsell. When I read this, I'm like this is genius. You want to take a low, small, a low ticket thing that you previously sold and you want to roll that into your next offer. This is going to reframe your customer's mind that they already spent this money. So now you're rolling it into the next thing. I'm telling you, rollover upsells would crush. All right, so summary for upsell offers, you should be doing good, better, best. You should already be going through. Hey, you can't get this without why do this? You should anchor your prices with the top most expensive thing first, then prescribe from there. And I haven't met a home service that's doing rollover upsells like what I just explained. I think that it will crush and I would recommend that you try it out and let me know what you think about in the comments. All right. The third type of offers in his money model books is called downsell offers. All right, so let's go through these. The first one is a payment plan. Again, we already do this. If you have financing or offer financing, it's very simple. You can get a new AC system and $9,000 up front or you could pay $300 a month for financing. Very simple. We all probably do this anyways, so that one's pretty straightforward. All right. Trial with penalty. I like this one too. Hey, you could get your free first MO if you continue monthly, the price is $150 a month instead of $120. If you had signed up front said with H Vac is you can get your free first tune up but if you join the plan later, it's $25 a month instead of 20amonth. Basically what this is saying is you could try us out, but if you were to sign up now, it's going to be 25 bucks a month or 250 bucks. Or if you wait it's going to be 350 bucks. So basically you try us out. But if you try us out and then you do this, then it's a penalty. I like this one. But also, you know, I'll probably just give them the discounted rate anyways. Feature down sell. We already do this. You get the full package. Interior, exterior, screens and tracks is 500 bucks. Or you could just do the exterior only is 250 bucks. Again, we already do this downsell feature thing, but I think this is a really good. If you're not doing this in your Sales process, you should be doing it. So from a downsell perspective, inside of the sales process, these ones are pretty straightforward, like menus, classic sales downsell offers, getting the sale. I would say most home service businesses are relatively good at this. All right, and the last one in the money models is continuity offers. We're not good at this. Okay, this is why I want to get to this point too. This is what your CSR inside sales reps should be selling. This pre service and after service, these continuity offers. And this is like memberships. How can you keep these people continuing to work with you? And we're going to talk about it. There's three of them. The first one is a bonus. All right, your csr. If you sign up for our annual maintenance plan today, you'll get a free thermostat or you'll get a free first cleaning. Gutter cleaning. If you sign up for a biannual cleaning, you get a free downspout cleaning. Plumbing, you get a new hot water heater, you get your first two hot water heater flushes for free. Basically, you want to have a bonus continuity offer that sells something additional that's going to continue the service, but it gives it to them for free as a bonus for signing up for continuity. So annual maintenance plan is a continuity, and then they get a free smart thermostat. The biannual cleaning is something that's continuity, but they get a free downspout cleaning. The hot water heater flush could be your membership program. And when they get a new hot water heater, they automatically get enrolled with that and it's two hot water heaters for free. You want to make this a continuity offer for your membership and a bonus on top. So that way it automatically just sells right into your continuity offer or your membership. Our number two is a discount offer. You join the membership plan and get your first three months for free. This is really good. If someone's like in lawn care, for example, okay, January, February, March, you might not be using us, but April, you're going to definitely start using us. So in December, you say, hey, if you have a membership or a lawn care service, the first three months are free. Then you start in April. If you sign up in January, boom. Like, that's a great offer right there. That's a discount offer. Enroll in seasonal gutter maintenance program and get 50% off your first cleaning. Someone calls in for gutter cleaning and say, hey, you could pay full price. Or if you want 50% off your first cleaning, just sign up ahead of time. So that we don't have to call every single season and try to get this stuff cleaned. Same thing with roofing. You're giving them a discount offer so that they sign up for the continuity. You get your first three months free. You get your first cleaning free, and then you still enroll in this continuity plan. All right? And then the last one, which is waived fee if you commit to longer term. So in the H vac world, we waive our initial $199 initial inspection fee when you sign up for our platinum two year service agreement. We waive your $75 soil test. If you enroll in our full year treatment package, you're waiving whatever your initial inspection or your initial fee is so that they sign up for your long term plan. You're giving them a discount for continuity. The membership thing. I have a video on my channel where I talk about all about how to enroll people in memberships. The best thing that I can say for this is that your CSR inside sales rep needs to be selling this stuff. Your technician, they don't need to be selling this, because when they need this stuff is when they first call in, they have a problem. They call in and say, oh my gosh, my AC is not working. Okay, we can get someone out there for you as well. And I could also probably save you some money. Here's the options that you got. We can send a guy out there for this, or we could waive that fee and you sign up and we're more proactive instead of reactive. You want your CSR to be jumping on and tweezing that pain point, because when your tech gets out there and solves the problem, it's not a pain point anymore. They're not going to be as willing to buy or sign up for things you need to. You need to go for it whenever the issue is. All right, so all these offers, these money models, that's the four money models. What I can tell you is that if I was in a home service business, I would install attraction offers into my business right away. I would have one of these every single month. Then I would make sure that my sales process went through. An upsell offer and a downsell offer process like I mentioned before. And then I would coach my CSR team to have a continuity offer. And after the service, I would make sure that I had an inside sales rep or someone that was calling on these people to make sure that I have a secondary offer for continuity offers. And that's money models right there. You get the leads coming in with an attraction offer. You work them through your estimate sales process and then you get them on a continuity offer so that way they keep using your business over and over again. I hope you like this content. If you have a thought or comment about it, drop a comment below and I'll see you in the next video.