Day 2 From My $105M Book Launch | Ep 953

27:10The thing is, they're also not educated to know, since they can, once they're 65 and older, they automatically have a Medicare Part B. Well, dude, then why don't you just advertise to everyone who's over 65 and older? I do. We do. We do do 65 and older. But they still have other insurances they could kind of opt into. But I thought they opt into other Medicare benchmarks. Yeah, but they all have plan B if they're over 65, right? So they do qualify to use your stuff. Yeah, so, but once they hit 65, they also have the option to choose other more affordable Medicare medical insurance plans. So that's where the challenge is.

27:48So you're trying to find people who are not over 65? We are trying to find folks that are over 65. Even though they qualify automatically at 65, they do have the option to get out of more affordable options. I hear you. I hear you. So let me – I want to help because I also want to – I got to make through the next donor. Okay. So big picture. Right now, you're taking too many calls that are trash. There's definitely diamonds in there. And so we have to add filters to the funnel. And so the filters that we have to add is the copy itself. Now, if you say they have no idea, then we're going to have to do what are the other things that they have in common?

28:26Now, to your point, you said everybody above 65 has this, but they have other stuff too. For me, that just sounds like a sales call. So if you know 100 % of people over 65 have the thing, then to me, I'm like, well, then why would I focus on anyone else? Because then I'm just going to try and have the max hit rate knowing that every single person you have the phone with can do this thing. because now all I have left is, do you have a wound? And are you ready to say yes? So if I'm you, my targeting is going to change to 65 plus. I would also make the messaging change on the opt-in page to just reinforce that.

28:58And then you have your, yeah. And then the application part, I would add in how big is the wound. And then that way you can score the leads. And even with that level of lead flow, maybe that's enough filtering. If it's not enough filtering and you're still getting trash, I would then start scoring them and only showing the scheduler to the people who have wound sizes above X. Gotcha. All right? That's the first thing that I would do and think through it. Yeah. All right. Appreciate you, dude. Congrats on the business. I appreciate you. You bet. I mean, dude, you're doing 2 million profit, 5 million top line.

29:31Like, I mean, you're not suffering right now. All right? But if you're being inefficient, then we have to add friction. That's fundamentally it. Like, if you're sifting through too much crap, you've got to add friction. Gotcha. No, I appreciate that. guys. You bet. Awesome, man. Talk soon. Thanks for donating books. All right, mate. Thank you. Of course. Absolutely. All right. Rock and roll. We rocking and we rolling. All right. Dude, I'm checking boxes right now. Okay. Zach Rinders. So Zach Rinders, R2 Studios Architecture. This sounds interesting. All right. So anybody who's tuning in, it's, I said, I'll say it again it later.

30:09Okay. So Zach renders. I'm calling the people who donated 800 bucks as fast as I can. That's what I'm doing. Just so you guys are curious. That's what I'm doing. I'm doing five minutes a piece. This is Zach. Zach, we've got five minutes on Hermosi Hotline and I want to help you with the business. So the timer has begun. You bet, dude. The timer has begun. Okay. so talk to me what's uh yeah what are we looking at okay so i'm actually in a client meeting i'm stepping out right now it's only five minutes you can tell them that perfect okay uh we own a local architecture firm okay soda got it we niche down unintentionally but it's worked to our favor fine of we only do assisted living facilities that are converting so it's people that are taking a single family home with five or less bedrooms and converting it to an assisted living facility they need to get licensed architecture plans for the state.

31:07So that's where we came in. Our problem is everyone's really cheap. Well, we actually do 80 of those just off of referrals every year. Okay. So it's pretty solid where it just sustains itself by our service. Can I make a guess at what you need to do? Pattern recognition, I promise you. Okay, so you're in a space that is super price-driven, right? Because you've got its construction, they're looking at cost, blah, blah, blah, blah. Right? Yep. Okay. You have three vectors of winning. You have to pick one. Ideally, you can have more than one, but one is what I like to lead with. So you've either got speed, you've got risk, or you've got ease.

31:44Right? And so in your business, time is money if you can do things faster. Right? There's also a risk component of like what kind of costs are going to come down the road if you do it the wrong way or do it differently. And then it's like, is there a way that we can throw some sort of verbiage or guarantees or some sort of like clawbacks that a customer can get where we say, listen, we'll put our skin in the game to make sure that we'll be on time and on budget so that you can build your thing faster so you can get faster returns on capital. Because I'm assuming these, like you quote sell to an investor or you sell to a GC?

32:18So they're all, they're individual business owners. That's the hard part is we're going to small business owners. It's likely their first business, right? so they're cheap too. Okay. I mean, who are the best business owners that you deal with? People that don't question the price that understand the process. Yeah, my favorite. Yeah, exactly. No, but it's not... No, but it's not... Okay, so then what stops us from getting only those people or focusing almost exclusively? Like, can we get deal flow that has higher percentage of those people so we can command the prices we want? Oh, I would love that.

32:51And part of it is I've tried to expand so that we give one faster speed, like you mentioned. So we get our plans back to you within a week. So that's faster than most everyone. And then we on the back end, no one understands the process. So I've learned it really well. So that's where I come in and I can give them that guidance versus just someone that's giving them a commodity of just a single plan. So that's where we've been able to get our price up some, but I need to get it up higher. So you need stats, dude. I'm telling you right now, you need stats. So this is a logical sale, right? This is not an emotional thing for most of these guys, I would imagine.

33:24This is a pure dollars and cents thing. And so you need to line up and come in with that frame, which is like, listen, let's be clear here. You and I are both business people. You need to make this make sense from a dollars and cents sample. They're going to say yes. It's like, cool. So there's a concept called save a dollar a day, cost you four tomorrow, or pay two today and it saves you four tomorrow. Which one are you like? Would you rather pay two and save four or pay one and have it cost you four? And they're like, well, obviously the save one. It's like, right, I like to establish that because if someone says, no, I'd rather just save as little as possible, then we all know that's not going to work for either of us, right?

33:56Okay, cool. So then it's like, this is where the stats come in. Like I'd look at Statista, I'd look at, I'd ask, you know, GPT, I'd be like, hey, find me all the stats of average unforeseen costs that can occur. And so then, now we took the frame of the fact that it's just going to be a logical sale. We're all dollars and cents here. But the reality is now we go fear, uncertainty, and doubt, right? So now it's like, well, these are the top four things that occur. This occurs in 22 % of circumstances. This occurs in 15. This occurs in 38. And these are all the different things that can go wrong.

34:24And so what we've done is that we try to minimize this thing, which is going to cost you way more money than what I cost. And so now we're anchoring around all these way more expensive things. And then basically, that's how we can basically nudge our way into a completely different price because we've changed the context around the conversation. Okay. Would you think about any way to get recurring revenue, or would you just double down on this and try to get as many people as possible? So the only way that I would see recurring revenue in your specific business is going to be people who do regular business, more so than subscription, anything like that.

35:00It's more like, who are the nodes of referrals? Those are my quote, reoccurring more than recurring business. Like Coca-Cola, super amazing business, not recurring, but reoccurring. And so I put your hat on. So what you need to do is chunk up in terms of how you think through your business. I'll give you an example. So when I had Allen, which is a software company, we had, you know, the first thing we did is we went to market for small business owners, right? And that sucked because they'd be like, oh, this is great. It works for our leads, but we don't have any leads. And I was like, oh, darn, I didn't think through that.

35:30And so then all of a sudden, the people who did really well were the ones who already had agencies that were working with them generating leads. And then our thing just did a lead flow. So then all of a sudden I was like, okay, well, I'm going to go after agency owners and say, hey, we can improve the results of your services and decrease churn and basically make more money, et cetera, using our software. And so all of a sudden what happened is instead of having – trying to go onesie-twosie after business owners, we just went after agency owners. And I knew that let's say a chiropractor agency comes in.

35:55He only does chiropractors. He comes in and he pays – he onboards his 50 clients at a time. And I was like, oh, that was fucking great, right? And for you, it's like somebody might have a portfolio. But he onboards 50 clients. But then after that, I could rely on the fact that 10 of his people would churn every month, and then he would sign 10 more up every month, right? And so our churn at the agency level was almost zero. Our churn at the SMB level was whatever the churn of the agency was, which is not really our issue. And so when we redefined our business as, oh, we're actually in the agency servicing business, not in the SMB servicing business, that's when it really started stacking.

36:30And so translating this back to you, you said you've got these referrals that are coming in, right? Right. Yeah, we typically get three to four referrals every week that we're going to try to book. Amazing. And so then I'll bet you have a list or hopefully you do of all the top referrers that refer your business, right? 100%. Right. And so then the whole paradigm around this for me is how do I partner with the referral partners so that they can frame the conversation with their introduction to me in the way that maximizes the likelihood of a close and the framing around pricing that I want? Right.

37:06Okay. That's how I approach this. And so your business, if I'm thinking through this, right, like if I'm you, my business is I'm really in those centers of influence, right? Those affiliate partners, those referral partners that you have, those are the quote customers. And so I want to see like, what's my sales guy for those guys to get them to consistently, you know, bring me more in and how can I acquire more of them? Because each one of them is a node that over the years, if I go from having a base of 20 guys who are affirming business to 200, that becomes reoccurring by nature rather than recurring.

37:37Okay. But still stable. Can you give a suggestion on a referral bonus for those people? Are you allowed to do kickbacks legally? I think so. Okay, great. Well, if you're allowed to do... I'll double check. Yeah, yeah. If you're able to do kickbacks legally, there's three different affiliate structures that I like. You'll immediately... I'll say all three of them, and you'll know which one's right for you. So version one is that you peel off some element of your particular service, a very small element, and then you allow them to sell it for whatever they want. They keep all the money, and then you deliver on that as step one of a multi-step process.

38:12That's V1. So an example of that is, hey, a new business owner gets an LLC set up. We'll do the LLC set up. You can charge whatever you want for that. Let's say they sell for$300. We do the LLC set up, but then we upsell tax and bookkeeping from there. But they keep 100 % of the upfront. That's option one. Option two is that they just straight up sell your thing, right? And then they get to keep whatever percentage, right? You give them 10 % or 20 % or whatever number makes sense for you. For them to actually just legit, you know, cradle grave, all they got to do is just acquire the business and then just send it to you and then you deliver.

38:44That's the second, right? And then the third is more of a lead gen version of this, right? Which is kind of what you're doing right now, it sounds like. And then you can quote, give them kickbacks later. And then they basically factor it in to how much they're, every three referrals I send, I get, you know, one sale or whatever. A lot of ours come from consultants that are on the actual application. Dude, a hundred percent. Then consult, like you need to basically build out, like, think of this, like you need a customer journey for the consultants. Okay. Like, and then that's, yes, exactly. And then they're the ones who are going to consistently be sending you business month over month over month.

39:18Okay. Got it. Yeah. Thank you so much. Dude, you bet. I know you got, you got your guy. I went over five minutes, so I'm so sorry. But hopefully you're good with it. No worries. Thank you so much. I appreciate it. Dude, you bet. Thanks for donating books. Yeah, absolutely. All right. Later, man. All right. You guys digging this? Is this cool? This is fun. El Senor chat. El chatissimo. Yeah, you got extra value, Albert. Supers farm. Love it. Okay, cool. Yeah, day three. I know. Well, it's really like hours. Jeez, I'm going to lose the phone. Hours 10 and a half until close. All right, we're closing this thing down as a team.

39:52we started together, we're ending together. Starting is one, finishing is one. All right, so that was, who was that? That was Mr. Reinders. So now we're going to go Trent Husky. Husky's paint and design. All right, so we're going to talk paint and design. This will be fun. I know, we're rocking and rolling. This is great, by all three of his books. Awesome. All right, so that was... What's up, Trent? Trent, you're up, dude. Hey, how's it going? Good, man. All right, so we got paint. We got five minutes, and let's rock and roll, man. So you got, was it a five million top line? What did I see here?

40:32You got paint, paint, paint, paint, paint. Okay, five million top line, 500 ,000 profit? Yes, sir, that's me. Yeah, that's me. All right, rock and roll, man. Okay, so what is the, like, what do you want, and what's holding you back? Yeah, so I've been at this for seven years now. I've got 40 people on staff. Congrats. Don't get to the point. Thank you. So my issue is I'm kind of at a fork in the road. I started off doing residential repaints. That was my bread and butter. I did that for years. And then I actually went to one of your conferences, and you guys were talking about reoccurring revenue.

41:03You were talking about LTV to CAC. Once I saw that, I went there to learn Facebook ads with my agenda. You taught me that. Completely pivoted. I was like, holy cow, I should go after GCs. Well, that was almost a year and a half ago now. So now that I doubled in on GCs, it's like every time I land one, it stacks. okay but the the downside to it is is that uh the gross profit is less but the the the advantage of it is that the ltv to cac is insane through the roof yeah so so it's like so it's like what do i do because my gp on repaints is 52 but i pay a salesman seven percent and it costs me another five percent market and that's 12 so when you wash it it's it's 40 gp to gp if you take away the cac you see what i'm saying so i've been doubling down on it but then here's the next thing is that so since i did that i was like okay i'm gonna go full force i hired i hired a uh and a virtual assistant who uh who just does my takeoffs so that way i could produce way more i could bid way more jobs way faster this whole this whole year i have three salesmen selling repaints they've they sold about 2.8 million i'm already at 2.6 million by myself with a takeoff guy assistant and so i'm already doubling down on it but i just won't i like am i making the right decision here because they are way harder to produce.

42:17It's the hard thing. Like, like most people get their ass kicked in new construction, they go bankrupt. Uh, the AR is crazy. My average pay per time right now is 65 days, but it gets up to 91 20. So it's very capital intensive and it's a way harder business model to run. Do you think I'm making the right decision? Well, thank you for the context. Um, so when you said you were getting 20 to one, were you talking revenue or gross profit? Gross profit. Yeah. So you still make way more on the GPs. So what do you mean by that? Will you explain to me? No, so you said you're going after these bigger deals because they're recurring, the GCs, the general contractors, right?

42:55Yes, sir. Yes. And the issue there is just that it's really just that the pay cycle is extended, so it just costs more cash for, basically you have to float cash for a period. That's the biggest problem. Okay, so I'll give you the simplest answer here, and I'll tell you a story to illustrate this. So there's a company that I was looking at investing in, and it was a couple years back. And they were at like$2 million a year, and they had$4 million in debt, and it was just a mess. And I ended up not doing the deal. And one of the big issues was that they had bad terms for payment. It was a physical product business.

43:29And what they ended up doing is finding a manufacturer that gave them net 90 terms. So they basically fronted them the inventory and then gave them 90 days to pay them back, which is amazing, right? It's literally the opposite situation that you're in. And the result of that is that within 18 months, it went to$5 million a month. Holy cow. Right. And so my point here is that we could look at model, but I lean towards this is far more likely to be a financing solution. Like we could do all sorts of crazy things, but like realistically, you probably just find a 90-day rotating credit line at a bank and just show them what your financials are and what percentage of deals you collect on.

44:06and basically you just have to show them diligence that when you say, hey, I've got this money coming in, it's just called AR financing. And so by doing that, you can accelerate the cash flow cycle and basically eliminate that. Obviously, you've got to be responsible with it because you've got to pay it back when you get it. But that capital tends to be very cheap because it's basically somewhat secured. Technically, it's not secured, but it's secured by your AR. So it's like a line of credit. It's exactly. Yes, exactly. And then that solves the cash flow issues. Yeah, because that's by far the biggest issue.

44:35My AR routinely sits at$500 ,000,$600 ,000. It's crazy. And so if you could pull that down, you could just like, okay, great. I have this here. And usually those are around a percent a month that they'll hold. And so very easily, you can find a percent. You know what I mean? Just like you could raise the price by a percent and get it back. That's genius. That's genius. Yeah. I don't want to mess with anything else. It sounds like what you found when you came here worked. So I'm happy about that. and now you have a 21 machine like when i see a 21 machine i don't want to mess with anything about it dude and so the only issue you have is a cash conversion cycle issue and because you're in a space where financing exists for this problem i just say like let's just go pursue that that's the first thing i would do that is genius thank you so much i'm telling you because like whenever i was there i had that epiphany and like you guys you guys were passing around the mic and i was raising my hand i was like please just tell me i don't know if this is right and i didn't get to ask i was like i'm just fucking going for it excuse my language no you're good man well i appreciate donating a hundred books and you know, honestly, thank you so much for me and from the entrepreneurs that you donate books to.

45:38Happy birthday. Thank you so much. I really appreciate you. You bet. Thanks, right. All right. Bye. Okay. Now we're going, is that cool? That's exciting, right? That's kind of fun. Um, yeah, this like, honestly guys, I could literally do this all day. Um, well, you will see. Um, I really, I just like, I love business. It's like the only thing that I really enjoy. It's like the only thing I drive joy from. So, um, yeah. I would do it for free. And here we are. And I'm doing it if you donate books. So Daniel Mueller, next up. Sounds German. All right. Let's see what this is. Heismueller. All right.

46:16Let's see. It's 4-9. I'm guessing he's German. Like actually German. Not just like his ethnicity, but I think his country of origin. What's up? Are we in Germany? Yeah, we're in Germany. I guessed it. I guessed it. Okay. Talk to me about the business. What's Heinz Mueller? All right. We have five minutes, too. Just want to give you a heads up. We have five minutes just to give you a heads up. Okay. Go for it. Great. Thank you. I just started a business four months ago, and the first business, I had a little bit of, like, I grew too fast. Okay. And I had various issues. Okay. And so now I'm wondering how you could decide when to grow and when and what systems to grow first.

47:08Yeah. Yes. Really good question. So first off, off the bat, I don't know what went wrong when you said you grew too fast. But my guess is that you... So one of the sayings I have is that you can't really overexpand, but you can under-talent. Meaning the people that you brought in when you were quote growing too quickly were just insufficiently skilled. And as a result, things started breaking and falling through the cracks. So I went to the VAM last year. Yeah. And I think the issue was we identified as like I went over my skis. Yeah. Yeah. That's what you said. Yeah. Basically, you were spread too thin.

47:49And you can be spread too thin because you don't have enough support from good enough teammates. And if I say anything you don't understand because I talk fast, just correct me. All right, just hold me back. But right now, the speed of your – I'll talk a little, sorry. So the speed of your expansion should be correlated with the speed of your ability to acquire talent. So the speed of your ability to get good people into your business to hire them. And so the reason that it felt like you were overexpanding is because you had no help. That makes sense. Okay. So if that was the situation, I would then look at my calendar.

48:29Basically, the follow-up question is, do you have the cash flow to pay somebody what's required to get the help you need to expand the business currently? Do you? Right now, I hired my first sales rep starting next month. Okay. I'm doing 150K revenue this month and I have 25K profit. Okay. It's a little low. I don't know if that - It's a service business? Yeah. I do, it's like an HVAC company and we specialize on hip-coms. Yeah, heard. So I think that especially if you're a niche, you know, service like that, niche home service especially or commercial service, you probably, this is me just guessing, you're probably also a little mispriced.

49:25So I'll bet that you do need to raise your prices because if you're running 150 top line, 22 ,000 bottom line, you're running what, like 13 % margins or something like that, right? Yeah, like 15%. Yeah, right. And so for me, a home service business, especially if it's niched, like for me, I would say 30 is going to be where I'm like, my kind of like minimum target for just, I would say, like if you were just HVAC, right? But if you're like, I specialize in heating pumps specifically, I would expand that even further to like, you could, if run well, this business could run 50 % plus margins.

50:03It's like a very competitive market in Germany because it's very subsidized. Yes. Yeah, yeah. No, I hear you. But the, okay, so I'm just going to put a pause here for a second. I'll ask the original question again, which is, do you have the cash flow in order to hire the help? You said you're hiring a salesperson, right, that's coming in. Yes. So in order to make sure that you don't grow too fast, what you have to do is that when that new salesperson comes in, before saying, okay, now I'm going to hire the next person, we have to make sure that that salesperson becomes productive. So the speed of your expansion is going to be the speed of your ability to onboard and activate teammates.

50:38So just like you activate a customer, like you say, okay, they have to go through this journey, and then they get a good result, they're happy, like you have that journey. We basically need to think through your expansion from the employee perspective of how do I activate the employee so they don't have to think about them as much. You go from training to managing.

50:59Once they're managed and they're consistently generating revenue for you, especially because it's sales, right? Then at that point, I'd say, okay, now you can take your eye and then put it to the next constraint of the business. But it sounds like acquisition was taking a lot of your time. And so you hired the salesperson, which said, you know, that's fine. That makes sense. I would look, do you give any discounts at all?

51:20Do you give discounts when you sell people? Yeah, or anything like that. But I don't know how to use this. No, no, I don't want you to. I was going to say, if you don't want to raise your price, at least eliminate your discounts. All right, yeah. Okay, no, because literally you're at 15 % margins. And if you're giving, let's call it 10 % discounts or 15 % discounts, you're giving half your profit away. And so if you feel uncomfortable about raising the price, then what I would do is say, eliminate discounts and then add speed or add risk-free. So it's like, okay, so if you buy today, we'll do it faster.

51:52If you buy today, I'll guarantee this. rather that if you buy it a day, you can pay less. Does that make sense? Yeah, it makes sense. That's what I would approach to try and get a little bit more premium on your pricing. Because, like, dude, your margins are so low that even 5%, 10 % jumps is, like, 60 % increases in your actual take-home. I'm kind of afraid that if I raise prices, I don't sell. Well, everyone's always afraid of that. That's why no one does it. Yeah.

52:21But I guess I do it now. Yes. Again, you have to focus on, the thing is, you are afraid of raising prices because you believe that you sell a commodity. If you and someone else do what the prospect believes to be the same thing, then they will choose the lower one, for sure. No question there. So the question is, how do we get them to not perceive them the same thing? Which is why the first chapters of the offers book is like, it's an apple and orange issue, right? You're selling a commodity. And so we have to get you to not sell a commodity, which means that we have to either add speed, you have to add ease, we have to make it more risk-free for them so that they say, okay, good, fast, and cheap, pick two.

53:00This guy is cheap and he's fast. But the thing is that it's not really cheap because you have to pay twice as much because I'm going to have to fix it. And it's going to cost you way more. And it's going to take you longer. so which one do you really want so it's like you have to break the frame to reframe the conversation cool and again sometimes that frame even sorry go ahead so I raise prices and then I hire for the next constraint and I only hire the next person when the person I already hired is like fully on board yes you nailed it Thank you. No, you bet. Thank you, man. Good luck with the business.

53:41Congratulations. And you are in a niche, man. I bet you have the pricing power. I'm just telling you, man. All right. I got to jump to the next call. I appreciate you donating books, man. Thank you so much. Thank you. All right. Bye. All right. Dude, I'm telling you guys, pricing, like the biggest lever by far on your ability to generate profit. It's like a three, I think PC said this two days ago, Patrick Campbell, he's one of the speakers at the launch. They did a huge meta analysis of this. It has a three or four X stronger influence on profit than any other thing you can do, which is you could keep customers longer, which is amazing.

54:20You could get more customers, also amazing. But the thing that's going to generate by far the most take-home increase, if you were to proportionally increase each of them, pricing is going to be way, way, way more. And so nailing pricing and being willing to experiment and do that with different prospects that are coming in and try new pricing structures out. Again, models is about monetization in general. But the bonus is, by the way, the entire profit system, which is the last column on the playbooks, which is the fast cash playbook, the pricing playbook, and the price raise playbook. Those three playbooks basically walk through the process of what does it look like to actually raise prices?

54:56How do you do it without fancy analytics? And then there's 10 optimizations of just like, how do I position this in a way that changes how they perceive the price so that it allows me to charge 50 % more. If you're like, well, both of these are apples, it's like, yeah, of course the customer is going to go for the cheaper apple. I would too, so would you. And so it's like, well, I need this to be a banana. And then say, okay, well, what are we really looking for? Do you need fruit? Or do you just need vitamin C? Because in fact, I can give you a vitamin C IV drip, right? And it's 500 times the price.

55:27But because we're trying to figure out, do we have to sell a fruit? Or is it like a totally different way that we're trying to solve the problem. All right. So that's how I'm thinking through. Next one up we've got is Daniel. We have two Daniels in a row. What do you know? Daniel Linares, DLE Event Group. Oh, events. Fun. I know something about that. I know something about events. A little bit. Run an event or two in my day.

55:56No, Raven, the playbooks won't be available later. they end in 10 hours and then they're gone the offer's gone forever yes sir oh thanks dude I appreciate it thank you for donating 800 bucks so talk to me about the event business we got 5 minutes and I want to I want to get as much I want to give you as much as I can totally totally so we do a luxury kind of unique blue ocean we're trying to dominate this category for luxury wedding entertainment it's not live bands it's not a live DJ it's this kind of combination group dude I love that industry starting to know it's called a hybrid DJ band kind of concept.

56:32Now there's not high search volume, but we do get exact match people searching for us. A lot of times they are our right fit and we are closing, you know, people in that kind of 10 to 30 K price point range. Dude, I love it. Actually, I actually, I, what you said, the hybrid DJ, whatever, that's like feature jargon. Like I, as somebody who, well, I'm not, I'm past, I'm not past wedding age, sorry. But like, but like the, when you said luxury wedding entertainment that I'm, I mean, I'm a luxury buyer, right? That struck a chord to be fair though, the price sounded cheap for what it sounds, what I, what I would imagine.

57:09Cause luxury to me to know it's significantly more expensive. Just as I know. True. True. I mean, honestly there's, you know, for the ultra 1%, we're the down, we're the downsell to the ultra 1%. Yeah. Yeah. So there's still headroom for us to a cent in price. Do you have a$100 ,000 option? We don't. Okay. Can we do something right now? Like right now, add a$100 ,000 option. Because if you're in the luxury space, you don't win on volume. You win on volume of dollars, right? Not volume of transactions. And so if you're doing all the work and the positioning of being luxury, then we have to capitalize on the sole benefit of luxury is that you can have super sky high prices.

57:49And if done well, which I think you will, it's a Veblen good, meaning the more you raise the price for the right buyer, the more they want it, not the less they want it. So if everybody finds us, they're like, man, your brand is like the five-star Four Seasons, my pre-conversion content. Dude, I will bet you right now that you're like, this is not a promise to anyone who's watching or listening, but if I were to bet, I would bet that if you were to double or maybe even triple your prices, you will close at a higher percentage. Because$10 ,000 to$30 ,000 doesn't sound luxury to me, man. I wouldn't even believe it.

58:24It's incongruent with the messaging. I mean, the luxury, you know,$300 ,000,$500 ,000 flowers. That's what I'm saying. And so, I mean, if I'm you, right, my sales pitch, and do you have a VSL before you talk to these people? I just made one. Okay, great. I did a pre-fall to our Zoom call. Yes, I now have a, here's our stuff. Are you running ads? Only Google ads, a 7x return on ad spend, but we're not doing anything on social yet. Amazing. Is it a pure opt-in? Yep. Request a quote after they've dabbled on our site, pure opt-in. Okay, dude. So let me just, I'm going to cut through, let me just, let me love you.

59:06Okay. So this is what I would, if I'm you, if I had to transport brains and like this, I have to take over the business tomorrow. The opt-in would not be request for quote. That's like the lowest converting thing that you can do. All right. Instead, I would have it be a questionnaire about the wedding. Right. So, and it make it seem like it's like, oh, that way we can tell you the exact perfect type of, you know, entertainment experience for a luxury wedding that would match your style wedding, blah, blah, blah, blah. Right. So they answer five, six, seven questions, whatever. Then on the thank you page, they either, if they have a budget that's high enough, they get shifted straight to the calendar where they can have the call.

59:38Or if they're not, then you just send them to a PDF or something like that. Right. So if they are qualified, they go to the call. Okay. Now, if at that point you have the booking, then you nurture them by sending them the VSL before the call. And then you put a secret word in there that says, hey, would you rather us watch it together? Would you rather watch it on your own? All right. Everybody's going to say, oh, I'd rather watch it on my own, which is great. But now they committed to watching it, which is the point. And if for some reason they forget to watch it, then you've already set the seed so that you're like, oh, did you get a chance to watch the thing?

1:00:02Which if you put a secret word inside of it saying, hey, by the way, just so we're prepared, tell us the head count of your wedding, just text the person who texted you this back. And so you should get numbers that are like 50, 195, whatever. But then that way, you know, they actually watched it. Right. And so then when you hop on the call, you reconfirm, they watched it. And then the first, however many minutes, if they didn't, you say, Hey, no worries. I'm going to grab a coffee, go watch this video. And then you'll pick back up. Right. Just as an easy way to make sure that every single person is pre-framed properly for the call.

1:00:31Now, the contents of that VSL, I know you already filmed it, but the content of the VSL, the way I would think about it would be how, basically, I want to break frame here. It's like, okay, so what do you think people remember the most about the wedding? Right? And again, I would look at statistics. I'd look at surveys. I would do whatever I could to try and have, like, the thing that people remember the most is this. The thing that people spend the most on is this. And so no one remembers where they had chicken or steak. No one. But what they do remember is how good of a time it was. That's where memories are made.

1:01:06And so we should be spending our money in proportion to the memorability or basically the memory contribution of size of each dollar. Right? And so this would be the frame that I would enter the conversation with. And so if they're spending 500 ,000 on flowers, no one remembers the flowers. Everyone remember what the entertainment was. it's really good man that's the frame and then you can start selling 100 000 150 000 dude you're luxury like we're luxury let's go luke's right let's make let's feel it and just continue to be messaging wise you know more and more unique as as we do it yes and so i would again i mean i said put 100k offer up there but like 100k i think is probably where you is going to become your bread and butter, just being real.

1:02:01Like you need a 250 ,000. Like dude, if you're luxury, luxury weddings, you've got a bridezilla and dad's paying and he's a, you know, a hedge fund manager. He doesn't give a fuck. Damn. Mind blown brother. Yeah. As a luxury consumer, like, let me tell you, they will spend, they just want the best. And right now your price is actually, I honestly think are hurting you. 10K for a wedding is like the napkins. We get so many people that don't flinch, right? What's your close rate? Yeah. What's your close rate right now? Close rate, you know, we meet with 10. We probably close, I think like 20 % out of it.

1:02:44So like about 20 % close rate of booked calls. Yeah. Of booked calls. Okay. Of booked calls. Well, how many of those would you say you cancel because they're just not qualified? They cancel themselves. Our automation shows them our pricing in advance. They'll set up a meeting and then they'll cancel it. It's like, oh shit. Yeah, that's the thing. So what I started with, that's where we have the question flow rather than request an invoice. It's like, no, take our perfect entertainment quiz, perfect match entertainment quiz. They go through it and then it automatically sorts them so they don't even see your account.

1:03:18You don't have to waste your time with it. Filter them out as a budget questioning. Yes. Yes. What percentage of the calls that you take to close, not of called, not of scheduled? How many do we take that are actually, like, you mean our show up rate? Yeah. Well, yeah. Showed calls that you make an offer to. Of the offered people, what percentage close? Of the offered people, what percentage close? Probably 25%, about 25%. Oh, so the vast majority don't cancel their call. They don't. We get a 90 % show of the people that, that get on our calendar. So the way that I framed it is what that needs to be reflected in that VSL.

1:03:56It needs to be reinforced at the beginning of the call. You should be anchoring around$250 ,000,$500 ,000 expenses so that when you say your price, it'll seem like way better. And I think that you start with the 100K and you really do go for the 100K. And if you want, so obviously you just got a bunch of books, but the Anchor Upsell, which is in the upsell attraction mechanisms, the way to really, really juice it, if you want to get nasty with it, is that you present the 100K offer. All right, that's now your new offer, okay? Just, I know I want you to like wrap your head around that. 100K is the offer, but your core offer right now, which is your 30, right?

1:04:35Let's make it 35, because that's the same thing anyways. So make it 35, but what you're going to do is you're going to look at the 100K and you're going to say, of these things, What one thing is just really specific that most people don't particularly need, except for somebody who's a super baller, but everyone else is really happy with nine out of these 10 things. And so what you do is you have the 100K thing, and then some people just say, yeah, I want the best thing. Done. They don't even care anything. They just say yes at 100. If they say no, then you say, oh, you know what? Well, do you care a lot about where the DJ was born?

1:05:08I'm just giving it a stupid example. But they're like, oh, no, I don't care about where the DJ was born. And you're like, oh, well, we have this other thing that's$35 ,000. Because some people really care about that. But if you don't care about that, then this is$35 ,000. And it gets, I think, a lot of things that you want it. And they're like, oh, yeah. Because when you do an anchor upsell properly, right, the first thing is like you want to get the whales. And you've got to commit to it. You can't just like toss it up and then be like, oh, you don't want that. And then start selling the other thing.

1:05:31You have to truly sell$100 ,000. You've got to commit. And they have to really consider it. Otherwise, anchors don't work. If they really consider it, then they're already starting to justify why it would be worth$100 ,000. And then when you just say, cool, well, this thing's 90 % similar and it's one-third the price, then they're like, oh, done. Yeah, yeah, yeah. And so now all of a sudden everybody's buying your most expensive one, your current most expensive one, and maybe 10 % or 20 % buy your $100 ,000. And if I'm right, 30 % are buying your$100 ,000. And just by doing that, we doubled LCV.

1:06:06Thank you, brother. I know you spent some extra time with me, man. You're good. I want to help. Happy birthday, man. Congrats with everything. Well, I appreciate you. If I make you more money, you donate more books. You help more people. We save the world. Everybody's happy. Yeah, brother. Thank you so much. You bet, man. All right. Good luck. All right. That was fun, right? I know that was more than... Oh, we hit a milestone. Okay. 3.28. So we just hit a milestone. Oh, geez. All right. Let's rock and roll. Sweet. Okay. So I got a call. Okay. Who's hooking me up with a number? Ed, are you sending me numbers?

1:06:47We'll do it in a second. Okay, I'll call one more, and then we're calling single book buyers. All right. Hold on. So I'm going to call an 800 buyer who's coming in. All right, Ed, text me another 800 buyer. All right. Hamza Solomon. Okay. So you just you got 800 books and so I'm going to help you make more money Not a promise of course your results will vary Results are not typical Hamza We got we got five minutes brother talk to me what's uh you're the dentalist you're doing nine million top line Three million in profit right That's right that's right all right nine million three million bottom Okay.

1:07:34That's correct. So, I'm just going to say, thank you, happy birthday, brother. Congratulations on the biggest and wildest book launch the world, everything. I took the advice we gave to last year in Vegas. We were doing around, I think, a million and a half. And then the advice he gave me was just to do more, more, more of the same. And we ended up here at 9.4. So you went from one and a half million to 9.4 million from some advice. That sounds like it was a good return. I remember what you said to me, you need to do more ads, spend more time in the day doing ads, get more creative. Yeah, yeah, yeah, I remember, I remember, I remember, yeah, yeah.

1:08:15Yeah, so that's, anyway, so ever since then I've been watching every single moment, every little piece I could get from you. But this moment here now is where I want to understand exactly how do we take it to the next level. Okay. Or how do we dominate the UK dental market? Because we're hungry. We're all locked in in the team. Yeah. Everyone's motivated. Everyone's got good momentum. It's going to come down to stick. I'm going to tell you right now. It's going to come down to stick. Okay. Okay. Like you figured out the first part, which is why you just 7X'd or whatever the number is, 6X'd, right?

1:08:51You're 6X'd in a year following the do more advice. and you still need to keep doing that volume. I want to be clear. But the thing is, is that like really tremendously large businesses get really, really big 95 % of the time because of one thing, which is that they have, well, not 95, 100 % of the time they have one thing, which is a compounding vehicle. So they have something that compounds onto itself. And so virality, for example, is compounding, right? And so brand itself is a compounding vehicle, media, because people tell other people who tell other people who tell other people, and then that's how a brand compounds.

1:09:19That's one way. Now, given the nature of your business, you're not going to have a viral, I don't think, right? You know, I don't think you're going to be like the, I'll just leave it there. The main, yeah, your B2B, a high ticket service, like that's not the, that's not your game. But the key is going to be, how do we make sure that dentists never leave? That is now your mission. Because if you did, whatever,$9 million in sales this year, because you were at one and a half last year, right? So you've pretty much done almost all that growth this year, right? So the key is, if over the next five years, you did no more acquisition, but every year you do$10 million a year in sales, right?

1:09:54It's just that next year, you're at 20. And then the year after that, you're at 30. And the year after that, you're at 40. And your margin is disproportionately growing because you don't have a huge amount of op-ex. That's the game we need to get to now. That's your next level. But how would you do that, Alex? Because right now, I'm getting... I can see the pressure on not listening in a way as well. It's hard to, I guess, manage the sales team when there's more ad spend. I want to spend more. I want to spend... Well, I don't think the answer is spend more right now. The answer was spend more when you came.

1:10:32That was the answer. Right now, the answer is not spend more. The answer right now is you have to keep the people you're selling. You have to keep delivering on them. You have to keep them happy. You have to reduce churn. Alex, at what point do I know that it's assigned now to move into a different location and then aggressively scale locations and as a dental group. Like, that's also something on my mind which I don't want to ask you. Wait, is this out of four walls right now that you got the nine million? Yeah. Oh, badass. No, okay. Yeah, we've got one more room available. Okay, heard, heard, heard.

1:11:08No, I think you're actually, now that I understand that last piece, yeah, you're ready to open a second location using the same model. You're good. Okay. I'm glad. I'm glad we got there. So we have 55 seconds to spare, but that's, yeah, sorry. I misunderstood. Yes, 100%, four walls. You need to add another four walls. I'd go across town so that you have as little crossover as possible with the ads. And the thing that you have to be careful of is backfilling the talent who's required to pop off that next one. and with the sales team just advice there i think like how do i get a solid sales team here to handle inquiries and make sure no show rate doesn't go through the rules because that's what well dude you just got so follow the the literature the literature uh playbook that's coming in the mail right like literally follow that to a t number one before you do anything that's number one and then from a closing perspective one of the key parts and this is for everyone who's watching too is that the more I've studied sales, I feel like it's like the midwit meme.

1:12:15I don't know if you've seen that. It's like, you know, really, you know, just ask more times and, you know, don't bother them. And then, you know, then there's all these like tone and pacing and blah, blah, blah. And then at the end, it's just like just ask more times and don't bother people. That's really what it comes down to. And so basically we need to have a very straightforward script that anybody can learn. And so it's how can we decrease the complexity of the sale, remove as many variables as possible so it's easier to onboard and train reps and grade them. Because the more complex it is, the longer it takes to train them, the longer it takes to onboard them, then the harder it is to basically manage their performance.

1:12:49When it's like you have five questions to ask and you ask them in this way and you ask them in this order, it makes it significantly easier for somebody who's not as skilled to still succeed. And that makes a better business model rather than have a business that requires exceptional salespeople to succeed. Okay, but in terms of how do you find salespeople, it's the same for every business. You're going to have to recruit hard. And you want to think about your acquisition channel for getting salespeople the same as you think about your acquisition channel for getting customers. Same concept. You're going to advertise.

1:13:18You're going to have an offer. You're going to work the leads. You're going to interview just like a sale. Same, same. It's just that that is now becoming the constraint of the business is that you need more salespeople so that you can open the next location, which then can double the business or whatever. Okay. I got it. Yeah, follow. So, I think the best ethical prize that you've had. TikTok. TikTok, what? Layla just walked in. No, I think it's more that you want to demonstrate that you've done some level of personalization for the prospect that makes them want to get that value. So it's less about bribing them, like the term itself.

1:13:56It's more like, what does someone like that really want? It might be something that gets them out of pain or something that absolutely guarantees that this is going to actually solve it for them. But we want to show that. Okay. I appreciate you, man. Congratulations on your 6X this year. Thank you. Thank you. All right. You bet. All right. Bye. All right. We have the great, the great Layla. The one, the myth, the legend, legend, actually legend is way better. The legendary Layla. The legendary Layla is in the house. And so we're doing, so we're doing, this is our special edition because we just hit.

1:14:28No. We're just going to call single book buyers. Yeah. All right. That's the, that's the, we just hit the milestone. Okay. So we're calling single book buyers. Okay, so do we have, am I getting some? Yeah, so they texted to you. Oh, there we go. Okay, great. Yeah, there we go. So Brandon Spry, you're watching. We're calling. We'll see, Brandon. You just bought a book. And so that was, we hit this milestone. And so we're going.

1:14:55Brandon, we're on the live. Hi, Brandon. You bought a book. You donated a book. Thank you. Oh, my God. We appreciate you. Yeah. Oh my God, I was just watching the live. Did you stop watching? Seconds ago. Seconds ago? Oh, I lost you. I lost you on the dentist. That's what did it. Yeah. That's just, well, you just want proof. You just want to open a new location. Yeah. Yeah, there you go. No, I love it. Oh my gosh. Well, really great to meet you, man. Well, appreciate it. How can we help? We got a minute, sir. Let's do it. How can we help? Yeah, let's do it. So I'm a closer. I'm going to bore you with that, but I'm really trying to help.

1:15:37I work for an offer right now, and their show rate is terrible. And really great. It's honestly the best offer I've ever worked for. Well, you haven't worked for us. Dude, I just had a group reach out to me. It was like, hey, I was just looking for a closer. And I was like, I don't really trust you. Like they do it themselves, right? That's actually correct. Yeah. Yeah, you know how it is. Yeah, I do. This offer is great. They scale plumbers, and they're so good, and I just have so much conviction for their offer. And our close rate is great, but, I mean, you obviously have closed way more than me, and you know that if the close rate is too high, there's a problem.

1:16:18Yeah. And part of that is our close rate, or excuse me, our show rate is 20%, and our close rate is insane. So, you know, we get three calls a week, and we'll close two out of three. We'll get five calls a week, we'll close three out of five or four out of five. Yeah. You mean that actually pick up is that what you're saying? Not scheduled. Yes, exactly. And, um, yeah, a couple of things. And I'm an amateur. No, you're good. You're good. So there's, there's probably a handful of issues that are actually happening prior to. So like sometimes it's an uphill battle. Like if you're like, dude, I'm calling the lead immediately.

1:16:53I'm, you know, I'm, I'm, I'm calling him 10 times, you know, within the first three days. And I'm calling him twice in the first five minutes. Like you're doing all like the fundamentals, like the basics, right? If you're doing that stuff and you're still not seeing increases in show rates, then it's usually things that are happening prior to the scheduling. Okay. So that means – It's a BSL and stuff? Exactly. Right. So basically there's insufficient friction likely in the funnel. And so as a result – basically if you remove too much friction, then what is happening is that like it's so easy to book a call that you actually have fewer total shows.

1:17:24And so your metrics – like it's kind of getting into the vanity metrics game of like, look, we got 100 calls scheduled. It's like, dude, it doesn't matter. Like we only care who shows. Right. And so being willing to say, well, we doubled our cost per booking, but our show rate, because you're at 20%, it's like our show rate went from 20 to 60. So we tripled our show rate, but we doubled our cost, which is still a 50 % increase. Right. Yeah. Okay. So I would look at the application. Number one, I would also look at like, so is it, is it just straight, is it just straight to booking or how's the, I don't, I can't see the funnel, but like, is that the, like, how's it working?

1:17:58I mean, the funnel's changed too much in the last couple months. So at the exact moment, the funnel is for an offer or promotion we're running. And then it's also just like, hey, if you want to scale up, book a call. And then it's very basic info, name, email, how many people are working your company, what's your revenue. And then it just goes straight to, hey, don't miss your call. And it's basically a 10-second video of the owner going, hey, this changed a lot. Oh, that's the VSL? Yeah, basically. No, no, no. There's like three. No, you need like a five or seven minute VSL. So the proof checklist, which is tell your owner to go by that, but donate some books by the end of the day.

1:18:41But the proof checklist basically help you script out the VSL because you have to, right now, like the symptoms you're expressing are things that are, I mean, all of this is in the sales system. So you've got the lead nurture process and you've got the proof checklist. both of those things are the things that are missing, which is why you're having so few show rates or the show rates so low. The fact that you're closing is great, but I would bet you that if you put in that basically more proof on the funnel and the VSL itself, which typically the way it's going to be is going to have proof promise plan right at the beginning of the VSL.

1:19:12So like, you know, how do you know we're good? What are, sorry, like what's the promise? What's the plan of how we're going to help you do it? And then what's proof that I know that you're legit. And then we walk through the four step belief breaking, which is like, okay, what are the four things that people, uh, you know, struggle with or like why they, why they object. Right. And so it's like belief one, two, three, four. And then we, we order this and you'll be able to watch this live stream later. So I'll just talk fast. Uh, so, so it's, it's, it's what they believe, why they're wrong, what's right.

1:19:39And then proof. All right. And then that stack of that four steps you do four times. So it's basically 16 pieces, uh, to that VSL. And then you CTA at the end, whichever, whatever the next step is, which is like, Hey, text us back, you know, this thing. And then when that person texts you, right, then what we want to do is personalize the roadmap that we're going to show them so that they're like, Oh, they actually did some work for me ahead of time. Right. It's just like, I mean, just like plumbing. It's like, Oh, we actually, you know, I looked at, pulled up Google maps and it looks like your home was built in 1971.

1:20:07They were usually using these types of pipes at that point. And so I'm going to bring the stuff that's actually going to be able to fix this. I'm going to be able to do this even faster for you. They're like, oh, wow, that was impressive. So like now the question of you not showing up or like I'm using a home services example, but like the question like vanishes, right? So like, oh, wow, they like really understand my business. And so I would, if I were you, the salesman, we have to install those two playbooks. But in addition to that, I would, if I'm you, I would basically do little mini AI research, Zapier or make.com automation, whatever, to get a full breakdown of that business, the reviews they have, what people say, some of the employees at the business.

1:20:43Imagine you're like, hey, so I know Tom and Gerald work for you. Do you have any issues with it? They're like, holy shit. It's like you want to blow them away, but with automation and AI now, you can do that really, really well. All right, I got to call the next person. You got to go. I got to. That helps. All right, man. Nice to meet you. Nice to meet you, too. Appreciate you. Yeah, cheers. Bye-bye. All right, bye. Tick-tock. Tick-tock. I know, I know. I get carried away. You know what I'm saying? You got to call these buyers. Yeah, my bad. I have some special numbers that I've been given as well.

1:21:10You want to tell me what it is? Come on, Ed. I need that special number. I'll call Santiago first. I think we'll call this special number. Okay, Santiago Huerta. What if we prank call them instead? I don't even know what that means. Wouldn't it be funny to be prank called by yourself? What? Yeah. You didn't do that in high school? No, I didn't. I didn't. So lame. Your call has been foreign to voice memo. Tough one, Santiago. Why don't you leave a voice memo? Well, it's gone now. That's so rude. He's a no. Leave a voicemail. The opportunity of a lifetime. Just pass him by. Okay, well, I'll leave a voicemail.

1:21:44I'll leave a voicemail. Hello? Nathan? Yeah. What's up, dude? You're on Hermosi Hotline. What's up? How's it going? It's going good. All right. Rock and roll. We have like two minutes because I'm calling people who bought books. So we're doing it right now. How can we help? right now I am a sales manager for a proactive maintenance company we are launching a new software with sensor capabilities and an AI platform and yeah just was buying the book to see how we can enhance yeah enhance that above all your other books and yeah just trying to upgrade my career and sell some stuff 60 seconds to ask a question nathan yeah yeah that's pretty much it well i mean i can just say thank you yeah yeah honestly yeah this is a it's a crazy honor i'm like a huge fan of yours dude and um yeah just love your stuff well i'm a huge fan of yours for uh for putting the work man chopping and wood yeah we appreciate you thanks for supporting and buying a book yeah absolutely my pleasure guys i appreciate it you bet hey have a good monday thanks all right later all right bye i was like wave at the phone oh that's my own thing that's old man do you want to old man mosey okay do you want to uh do you have a special number i'm waiting on a couple of them so all right we'll go with alex oh there's not enough room in this live stream for more than one of us not enough room in this live stream

1:23:35do not hang up oh you want to leave that okay Layla's gonna prank call can you imagine this dude do you guys remember when you used to be like hot or not you remember that dude what did you do growing up I went to be fair I went to all guys school so like hot or not was not really a thing This is Alex Miller with Lutz, Denver. Sorry, I missed your call. Feel free to shoot me a text and I'll get back to you soon as possible. Tough. Tough, Alex. But this is Layla and Alex Hormozy. What's up? Saying hi. Hormozy Hotline, but you missed the call. So I said we have to leave you a voicemail. I feel like this is worse than not getting a call.

1:24:12I feel like getting a voicemail. It's worse than just not getting a call. I don't think so. God, it's terrifying. Well, Alex, thank you for grabbing a book. and we wish you all of the fortune that comes from everything in this context. Thanks for supporting. Yeah, appreciate you. Alright. How awkward was that? I don't think that was that awkward. I don't think that was awkward at all. I thought that was friendly. Alright, do we have another one? I don't know. It's taking this over so long. Alright, well, I'm going to call the next one. I'm going to call this one. Yeah. Alright. We don't even know who it is.

1:24:51Carlos. Hi, this is Carlos Rodriguez. Please leave your name and message. Wow. Thanks. Leave him something inspiring. Something inspiring. Leave no doubt. Be one of zero. This was Hermosi Hotline and we missed you because you just grabbed a book and you're probably on the live stream and I don't know, you missed it. But we love you and we appreciate you supporting. You love him? Well, I was like, calm down. Jeez. Jake, come on. Get out of here. No, no, no, one second, sorry.

1:25:27I didn't mean to miss anything. Dude, you saved by the bell, dude. My finger was hovering over the hang-up. All right, dude, how can we help, man? Okay, so who, what, and why? I'm a Carlos Rodriguez, Stanford PhD, research student. What do we do? I make medicine, so I'm working on creating new treatments for leukemia, trying to get rid of chemotherapy and radiation to help treat people with blood cancer. The problem that I'm having is that we're having a hard time getting funding. Recent budget cuts, a lot of funding is going missing. It's getting harder for people to get funding. We just recently submitted one thing which I think has a pretty high probability of getting us to know 100K, 200K over the next year or two, which isn't really enough to cover the three staff that we have.

1:26:15okay um so i'm looking for you seeing if we can come up with more creative ways of getting this funding um research funded because we have some really exciting results that we can do bone marrow transplant without your radiation in mice but we how much you need to accelerate this we need money how much i'm thinking two million dollars would get us to the finish line in monkey studies you know by the end of this year possibly middle of next year got it so how big is the average grants like how many do you just normally get one grant or multiple grants we normally apply to you know three or four grants um on the high end they can be 10 million but you get that you know once every decade or you know the more sustainable version is one grant every every year or two and that keeps the lab running and helps pay for the staff yeah so my thinking process is that this is i mean believe it or not this works the exact same way as like closing a deal you know what i mean um and so i think to me i would hear this and i don't know lately you can jump in but like insufficient volume of like okay we're applying to three or four it's like how do we apply to like 300 um like i try to solve that question like what would it take to guarantee that this doesn't fail um and i just i do that i know that sounds incredibly violent but hopefully this launch was like a little a little example that i try to walk that talk like i just like i just How can we maximize the likelihood of success?

1:27:43Right. And there's only so much that you can write or rewrite yourself. Yeah. And there's all these AI detection tools. So you have this body of work that you've written. Yeah. You want to use AI to say, hey, take some of the points that I've already written and help adapt it to this thing. But then you don't want it to get flagged by, I don't know, an AI checker on the other side. Okay. But, I mean, you say you only applied to three or four. Like, could you do like 30 or 40? Because the alternative is that you lose the research, right? What was that? Well, the alternative is you lose the research, right?

1:28:15Is that it stops. That's right. Right. So to me, it's like life or death. Right. It's existential. Right. So to me, it's like, all right, well, then like, again, what would it take? Yeah, like, yeah, we pull out all the stops. If it's like this or die, then it's this. Right. Well, I guess we don't, we have maybe a year of funding left, maybe less. so yeah it's do or die now shifting everybody's focus from the research that we do we have a body of research and results but it's going to go to waste unless you get the grant it's going to go to waste unless you get the grant so the constraint of the system is cash flow and the way to solve that is through volume of outreach volume of applications literally to get grants are there other perhaps creative strategies crowdsourcing funding for research there totally is I would just say, I always operate from find the highest likelihood path and then make it unreasonable that we wouldn't succeed by doing so much volume on the highest likelihood path.

1:29:12And so if you already know how to do grants and you've done multiple of them in order to get grant money, then I would say, well, if we 10x the amount of volume, the likelihood that we are successful. So let me ask this differently. If you were to do 30 grant applications, what do you think the likelihood, if all 30 were good, that you'd get the funding you need? um i'd say pretty good all right well to me it's like i don't even have another question like to me it's like it's just the time it would take to yeah the time it would take to figure out a different strategy it's just the same as a business it's like all right we want to figure out a new funnel right now it's like no we want to just see ruthlessly pursue making the old one work okay that's it man it's just ruthless point well if it's like if it's like oh the team it's like well we can't stop the research it's like well the research is gonna stop no matter what unless this gets solved right so like that's that but all right dude i appreciate you thank you for grabbing a book yeah and also just to respect what you're doing yeah respect what you're doing thanks for saving lives all right all right all right wow so discreet all right we're doing so uh All right, Santiago.

1:30:29Santiago Ramirez. I know. Tyler Mars. That just popped up. All right, Tyler Mars. It's you. You're up. The number eight dial has calling restrictions. Tyler, you didn't need to call her. All right, go for it. I got one. I got one. Okay. These are hot. Hot dials. The weather is hot. What? I just decided to call. Oh, well, there you go. Now you got one. There's no overhead mic. You're good. Or overhead thing.

1:30:59Hello? Hello? What's up, man? How do you know who this is? Oh, I'd say we've known each other since we were probably three or four. Cameron, what's up, dude? What's up, man? How can you do that? Hey, Cameron. What's up, man? You ass. Okay. So, well, you're on our Mosey Hotline. how's the physical well how's your new baby man you got you got oh good good yeah she's doing great man having two girls is wild right all right how just what that's like having two girls well you know anyways before lately.

1:31:47We're running on fumes here, Cameron, okay? Okay, talk to me. You guys, I mean, I've got to be riding on straight caffeine at this point. Oh, yeah. I don't even drink caffeine. Well, I just downed a hole. Anyways, so tell me about the business, man. What can I do? So physical therapy. You guys are online. Tell me what you're doing right now. So, yeah, we had started as online. We moved into two sublease brick and mortar spaces. I've been doing concierge mobile stuff. Concierge mobile had like a good margin, but it just was really hard to grow with that because it's just travel time and everything.

1:32:22So we just prioritized the brick and mortar. My wife, Lindsay, she's been crushing it. Where we kind of hit a snag was we made a hire last year in September, hired a PT, started off okay. And then just when Lindsay came out from maternity leave, we found out our PT just like tanked. So we just separated with our PT this past week. Got it. So our margins had like gone way, way, way, way, way down. Yeah. But now we've been building back up. So we're getting back to where we were with revenue. Okay. And then I'm going to step in while we're looking to bring in two PTs. Okay. And this is brick and mortar, right?

1:33:00Yeah. Yeah, I got it. Okay. So what are you doing for lead gen? So we do meta ads. So Facebook, Instagram ads. Okay. I think about 60 % of our lead generation is word of mouth, either through our patient base or through, like, referral contests. Yeah, heard. So, but 40 % comes from ads. So, I mean, right now, the limiter to grow, like, how much more, how many more patients can you take before you have full capacity at the location? That is the problem, is that we have these two subleases that just don't really allow for us to grow. And so like it's been kind of stuck in this cash cash flow problem where it's like I'm not able to generate enough to move out of this.

1:33:45So I wonder I wonder if you have a pricing issue. Yes. So we increased our price four times over the past year and a half. Love this for us. And so our yeah. So our single visit rate is 279. so and then we offer we try to not sell one off so we do packages and we have two different ones that we sell what's the price point? the low one is$239 a visit sorry $219 a visit and the other one is$239 and you're selling them as bundles though you're selling them as solutions right? it's a I mean we're not marketing it that way we market it as the plan of care but I mean yes Yeah, so they come in and you're like, it's going to take 12 sessions, so it's going to be$2 ,400 or whatever though, right?

1:34:35Yeah. Okay, got it. Do you have care credit? We do not. I would set that up. We do have financing options, I just haven't been using it. Okay. Well, I mean, if you do, typically you'll get a 30 % lift in revenue when you have like a good financing partner that happens kind of across the board, especially if you're in higher ticket stuff like yours is. And yours is something that there's plenty of lending partners that do stuff for health, you know, since you're in a, you are, you know, a doctor. Right. So, like, if you have the option, which you do, I would use it. And if you're not, like, if no one's even needing it, then to me, you still probably have some room to increase price.

1:35:08Because if you're, like, you're struggling with cash flow, which I'm not entirely, like, so you've got these, you have multiple locations right now that are subleased? Yeah. So, because Lindsay's in pelvic health, that niche, so we're, the two places we subleased are multi-provider practice areas. So, it's birth specialty workers. Yeah. so that's where we get like a shit ton of our referrals from and why not specialize in that why not specialize in that because i feel like it's gotta be okay i'm i so the only reason i'm even going back and retreat is just to like bump our cash flow up okay so you gotta do what you gotta do okay right yeah it's not like what i wanted to answer okay but yeah it's just so So we can get somebody, so I can get a little bit of cash so I can bring someone back in.

1:35:57Okay. Yeah, we were just like getting crushed by the lack of production by RPT and the overhead was killing us. Okay. So basically, you usually need to drive more cash flow, but is the ultimate escape path like waiting until these subleases go out or like what? I mean, I'm not locked into them at the end of this month. I'm technically out of my, like they go to month to month. Yeah. So I can leave whenever. Okay. Okay, well that sounds nice, but you said she's doing well online, right? She, I mean, so, I would say the vast majority of the demand is for in person. Okay, good to know. All right.

1:36:36Even from like your Instagram stuff? Yeah, I mean, we haven't been pushing the online stuff. Like, can, I definitely can. You said she's in pelvic health, like pelvic floor therapist? Yep, yeah, she's a pelvic floor PT. Yeah, that's why it's in person. It's a little tough on one. Yeah, okay, heard. Got it. Well, it's not, okay. So fundamentally, we just need to make more money. And the way to do that is that we have to get more people in, add financing, raise prices. Do you have any kind of VSL that people watch prior to coming in? No, but one of the guys in the mastermind I'm in sent me his nurture sequence.

1:37:15It's like a clinic tour and welcome. So I'm going to mimic that and then build it into ours. Yeah. Well, like right now, you're selling 2K plus packages and you're doing it without a VSL and without financing, which means that you probably still have room to go up price-wise. Yeah. And Lindsay's close rate's 95%. Yeah. Right. I mean, it's good. So you've got to – like people who are coming in for that are in screaming hot pain from what I understand. And they just had like a traumatic event or they're about to. you know um i would i would like i would raise the price man if cash if cash is like if you're closing 95 and you don't even have like all the sales stuff in place for like the right sales motion then you probably have at least a double in that so yesterday you were doing one of these calls and like you i forget who you were talking to but you said something that was like really intriguing to me okay it was a little bit different from model the guy was like doing sass stuff yeah you know uh one thing that he talked about was that we had like a you know a premiere program up front and it was like a really short like yeah eight weeks something yeah and then it was like because like right now i for me our biggest problem is i don't think we have or not our biggest but eight big problems we don't have like strong uh monthly recurring so i think it would be interesting if like i did something similar what you're talking to that guy where i have like a premier package for like somebody who's coming with that hot screaming pain and i said but like i'll give you this for free yeah if you just come into this that's the decoy offer that's the decoy offer in money like you know 1500 yeah that's the decoy offer that's what it is so they come in you say hey this thing's six thousand dollars or if you just become a member of our you know pelvic platinum club uh platinum pelvic who doesn't want a platinum pelvis right and so so then we'll give you this six thousand dollar gift for free if you just join our club right obviously not club but you know i'm saying right like the membership right so that so But it's like, so either or is fine.

1:39:10Like if you want, you don't want to do any continuity, no big deal. You can just pay$6 ,000 a day and we'll take care of you. Or we'll just give it to you. It's free when you join. And the goodwill on that offer is crazy. Right. And I mean, it crushes. It goes like, and the way that you do this, for everyone who's watching this, by the way, is you can balance how much cash you get up front by the price discrepancy. So I go over the metrics inside the book. But basically, there's a price premium of 30 % because we ran this test. people are willing to pay the, basically when you're at parity, meaning 50 % of people will go into continuity and 50 % of people just buy the one-time thing is when the one-time thing is priced at 30 % higher than the recurring.

1:39:46So let's say it's two months is the duration of your thing and your membership is, let's say$200 a month. So$400 is the membership price for eight weeks. And if I sold an eight week thing and I sold it at$550, I'd have the same number of people who We take 550 as 400. So that's the 50-50 split, and you'll have more front-loaded cash. If you want more people into membership, then you just basically keep jumping it by 10 % each until eventually no one takes the front-end thing, and everyone goes into continuity. Right. That's the idea. But the goodwill on that offer smokes. It's great. People love it.

1:40:27And then you can combine that with the waive fee offer, which is in the continuity section. and just say like, hey, if you cancel before this period, you got to pay that. And that's the way we do it. Love it. Cool? Yeah. Rock and roll, dude. Appreciate you. Congratulations on the kiddos. Thank you so much. And congratulations to the both of you. This is monumental feat. So Cam and I went to, for anybody who's watching, we went to, where did we go? We went to middle school. Middle school together. But we were neighbors. and so from Baltimore you can hear the Baltimore accent I've been told that several times and I still to this day you have like a deeper southern draw than the last time I talked to you maybe I gotta hop on these other calls but I appreciate you man of course, thanks so much alright, see ya alright, Hormozy Hotline next up we're going oh shoot, we're about to hit our next um no no no we're good we're good okay well we have our next milestone that's at 3.3 by the way guys so um which i'll read so yesterday i went over 15 mechanisms uh inside the money models books that was a whole presentation the money model system um but inside the lost chapters which is that guy which everyone who showed up live uh on the first day are you displaying it thank you oh thank you there you go um so everybody who showed up live got a free digital copy of this.

1:41:57This will be for sale after the event. So anyways, that was just my thank you for everybody who showed up live for the actual launch. But inside of here, I have some of the other mechanisms that I cut out because they're like maybe too niche or too advanced. And so we'll do a little reading when we hit 3.3. All right. So just look out for that. We got special stuff. Yeah, we got some special goodies. Okay. So who do we call next? Who do we call next? Do you like, what name do you like okay so we just got a let's get a hot one okay joseph fit for life academy just came in all right 800 bucks no this is 800 okay i thought we did it hey oh damn that was up hey speedy gonzalez on that one man all right well joseph fit for life academy 600k revenue 300k profit shoot talk to me got five minutes thanks man i appreciate it happy birthday for the 1 ,000th time.

1:42:50Anyways, man. No, dude, I'll take it. I'll take 1 ,000 birthdays. I'm a young entrepreneur. I've been in the whole business scheme probably for like a year and a half now. I've been growing my socials for about five years. Cool. We do online health and fitness coaching, primarily weight loss. We focus on a slightly older population, probably 40 to 60 people who have been struggling with weight loss for the majority of their life pretty much. Okay. And where was I going with this? The main goal right now is to be able to double the business over the next six months. Sure, okay. I think the simplest strategy is to get from, we're doing 12 to 15 new clients at the moment at a$3 ,800 price point for six months.

1:43:26It would be to double the amount of clients that we're getting per month. Okay. And using your principle of just doing more of what's already working until we get to a million. Love this for us. Our general funnel is Free Lead Magnet, which is an e-book on the front and on social media. Okay. 100 % organic. We don't do any paid. Okay. That goes into a DM setter flow in the DMs. Okay. And then they book sales calls. Okay. So the DM Center is setting about 10 to 15 calls per week at the moment. And we're getting about 200 new leads per week. My thought process to double leads would be, I can't do double the content because I already create a good amount of content.

1:44:01Okay. I would love to be able to start running some paid ads simply because we get a lot of unqualified leads from overseas, India, et cetera, that can't afford our service. Well, how much content do you make right now? Pretty much daily across all platforms. and then one long podcast and we're on YouTube per week. Per week? Okay. Yep. I could double down and I do want to. It's bandwidth at the moment. Okay, so this is what I'm... So, go ahead. We're going to say the same thing. Actually, I don't know if we will. I don't know if we're going to say the same thing. So, instead of doing twice the volume, what I'm going to recommend is that you spend twice as much time on each piece of content.

1:44:36Yeah. I would say I feel like I have the content dialed in pretty well. like that's what I would say I'm most skilled at by far we have close to 400k followers on Instagram and we probably get on average about 50 to 60 ,000 views per video. How much time do you put in each week to make content? Probably between 10 to 15 hours of my week goes to response information and that would just be scripting, recording, we have an editing team that does all of the editing and posting for us do you want to just post twice a day instead of once a day i mean i'm thinking like how do we deconstrain him in the content creation process and then do double the content with half the time most of it comes from doing research of seeing what sort of formats are doing right now exactly yeah so you do a lot of that research i do 100 of that oh yeah i don't know the last time i don't even scroll content yeah so that's something that you can for sure get you can You literally automate that task now.

1:45:41Okay. Yeah. I think, honestly, I think a lot of people get really caught up in the content creation process and think like, especially because it's you and it's a personal brand often, it's like, who else can do this but me? And you have a system and it's just a matter of being able to write it down, explain it to somebody else what your system is. And now with AI, it's easier than ever so that they can do those pieces for you. Because I mean, you're going to say better quality of content, correct? it's like if you want better quality you essentially you're to get better quality you have to put in more time but you're already putting in a decent amount of time and so the first thing that you probably want to do is make sure that you're not spending so much time on content so how can you cut in half the time you spend i was spending a lot of time scripting mine and then i just stopped because i was like i just can't even make content if this is what it is because i have to run the business and then what do you know it's actually doing better now that i have other people helping do it gotcha and so i think that that's probably the biggest unlock for you is getting that off your plate and honestly we know a lot of the biggest content creators and they do not do their own scripting gotcha or research to say it's what i enjoy the most like i enjoy creating content that's how i started so i enjoy that aspect of it and what you're saying makes perfect sense and one thing i have been in the question i originally asked one of my big bottlenecks is that we've gotten to the point where we have about five to six sales calls um on the calendar probably three or four sales calls on the calendar every day and it's a great problem to have but i take all of those so i need to delegate that and get a sales person in place my thought process with doubling the leads sooner than later um would be because i heard alex you talk about this on a podcast recently that it's a pretty simple unlock to start running some ads just to get more leads yes to the lead magnet that's already working yeah um so my thought process is just like start running some dm ads and just get a second dm setter double lead flow get one or two sales closers and then that'd be the simple at least in my perspective the most linear path to 25 clients a month do you when you're running a dm flow right now is the um d at the end of every reel are you saying like you know dm pdf or dm single video and stories daily i just feel like that also overwhelms the audience well i'll say this i don't know if it completely overwhelms the audience because a lot of the reels are going to new people so they've never seen you before also are you posting like many many times a day on trial rules no okay so right now trial reels are 100 guaranteed new audience so what i would do is look at your like sort by uh you know best reels of last 12 months right and then you're gonna get call it um you know your top 20 or top 30 of all time and i would post all 30 of those every month you can even post like two of those a day in addition to your existing post and post those straight to trial reels only new people see them and then it's still like honestly if you did nothing else from what we're talking about right now just do that and you'll probably get like you'll get a you'll get a noticeable boost and as long as they let you do it i would just be you i would be milking the hell out of that okay that makes perfect sense cool would you encourage the ad strategy i i want like real talk i want to figure out how to make the content better like just being because like I think that when you do start running ads, one of the issues that you're going to have if you go straight to DM is that like they're going to be really, like they're not going to be nearly as warm as the people are doing it now.

1:49:01Even if it's retargeting based to people that have engagement with my content? Well, if it's retargeting, okay. But then if it's retargeting, it's not going to be the N, the number size is not going to be high. Gotcha. Okay. You know what I'm saying? That makes sense. Okay, cool. I would do aggressive volume on the trial rails as thing one. And I, me personally, I would see how can I spend more time on the content? And that means that how do I eliminate all the other stuff that are lower leverage on the content so I can still maybe spend your same 15 hours or 20 hours but on the higher leverage work so that you can still make it better?

1:49:31Because that's the long, long term is that you just have to keep growing the brand. Because the ads is just going to reach further into the base you have into slightly colder people unless you have a true cold conversion mechanism, which right now you don't. And to me, the risk of trying to figure that out right now wouldn't be my first bet. Okay. Okay. The last thing I will definitely say is that we do have a pretty strong brand. the socials are probably growing around six to eight k per per month in terms of new followers and at what point would you say turn on the ad switch where it's like have that supplement their organic concept like i just what do you think not while you're selling well not while you're selling yeah i just like the thing is it's like hard for me which is like i prefer if you can to hire ahead so that you don't have to turn down because what always happens is people turn up the lead flow and then they're like well i can't take any more calls or or you say i am going to take those calls and then you drop the ball on your content.

1:50:23And so I'm just looking like, let's create that excess capacity so that when you get more lead flow, you have something to catch it. Yeah. Yeah. I'm in the process at the moment. I'm in the process of hiring two sales closers. So this all makes sense. Okay. Rock and roll. Thank you for donating books, man. Appreciate you. Of course. Thank you. All right. Oh my gosh. How many copies are we away? We're very close to 3.3. I think the team has a present if we hit it. Oh, really? well let's do uh let's do let's do a um for anyone who's tuning in right now we're calling people who are buying books um and donating books um and so that's what we're doing okay randomly randomly yes so who's coming in i have my so many notifications okay um we got who we got who we got um let's do what's this this is this okay uh oh we oh shit okay wow we just hit 3.3 Okay, so we hit 3.3 million.

1:51:19Yay. Huzzah. Amazing. Yay. So now I'm going to read an excerpt from the$100 Lost Chapters. And when we hit 3.35, I'll be randomly selecting people who donate 200 books. So as soon as we hit 3.35, I'll be calling immediate. I'm just shifting the list of people that we're calling based on who donated books. And I'll be signing a personal copy of$100 Money Models for 10 of you guys. Okay? So at 3.35, stay tuned for that. We're going to be signing books now. Oh, we're signing them now? Yeah. Oh, good. Okay, here we go. So we're signing books now. There we go. We got it. Let's rock and roll. Okay. So we have shit.

1:52:00Oops. It's okay. It's live stream. It's a live stream. Hey, this is real. All right. So I'll sign this guy. He's real. Oh, well, they got a blue one. This is a special edition blue one. Well, whoever gets the blue one, you should kiss it or something. What the? just unhinged uh a and l cut out of my okay that's that one okay why don't you call somebody else i'll sign okay yeah what if i call anything of you oh god but you have a lovely singing voice when we're at hotels and i call the front desk they're like oh mr or mosey i'm like jesus

1:52:39all right appreciate you guys 3.3 yeah thank you guys you guys are awesome honestly I'm excited because then I know that over the next 12 months so many entrepreneurs are going to get books and it's like it's the coolest thing I actually gotta wait because we have a surprise for you once you do this so I'm not going to call you you can't call one you're just going to have to just call one do like a 60 second one 60 second one do a 60 second one they want a 60 second one I want a 60 second one oh Layla signed too that's the repressed also somebody I saw somebody asking the chat Lost Chapters comes Tuesday morning so that's tomorrow morning it's via email it's digital and basically anybody who gets a book gets the the digital stuff faster all right um but yeah so you signed one that was so kind of you all right just unhinged just absolutely insane okay this is what i deal with just such a simple request it's like just call just call somebody you know she's like i don't she's like i don't care i don't need you you need to sign them faster so that we can get back well you know normally i have you know i have an assist and then maybe we can get in like the most recent person who purchases yeah to call could we do that actually all right hold on you guys text me the number for the person who called can we get the person who just bought at the 3.3 somebody just text me the number yeah so we have this uh feed on our phones of people who are buying who are grabbing books the book looks super thin oh man you do not know how my stuff works do you first off a book like this if i were to cut it in half it'd be twice as thick which is what most books are i also put pictures in there to make sure that you can understand it and the thing about a concept is that a concept when described well should be as short as humanly possible as long as really possible we're not in an age of more information equals better so if this was a thousand pages would you feel better of course not if i were to pull your tooth out it took an hour rather than five minutes you'd rather take five minutes so it's about what's contained inside Yes, why do we have...

1:54:36Oh, what's this? What do we have going on here? I don't know. It's somebody's birthday. Oh, God. Yes. The things I deal with. All right. Listen, we don't get to hang out on your birthday, and so I wanted to make sure... We're hanging out. We're talking business. This is all I want to do on my birthday. Guys, are you going to sing? I'm not singing on live air. Happy birthday to you. There we go. Happy birthday to you. Happy birthday dear Alex. Happy birthday to you.

1:55:15Oh God. Make a wish. Make a wish. Oh, okay. I hope all you guys grow your businesses. You can't say it. You can't say the wish? Otherwise it doesn't come true. If only I believed in these things. So, okay, I won't wish for you guys to grow all your businesses and accomplish all your dreams. That was disgusting. That was disgusting. That was the wettest candle blow I've ever seen in my life. Nobody eat this. Yeah, I feel bad. There's like literally spittle. Yeah, that's on me. That's on me. I'll take that. I take that one. That's on me. Okay. All right, who are we calling? Yeah, who are we calling?

1:55:56Oh, we've got to read the lost chapters. Oh, I've got to read the lost chapters. Yeah, you're right. Okay. lost chapters coming up okay i'm going to be listening can we put a poll in the chat real quick i want to see which one they want to uh which i'm going to i'm going to read a couple names uh just put one two three or four i'm going to say four i'm going to say four different chapters from the the lost chapters um also for the gentleman who was like that's not very thick that's what she said um you think i'm on hint i'll be back lay a little be back okay so i'm going to read the table of contents.

1:56:29I'm going to read, I'm going to, I'm going to pick four, I'm going to pick four different chapters. Let's go. Gosh, there's so many mechanisms I have in here. Okay. Free pick your price. That's an attraction offer. Pick your price. That's number one. Number two is going to be a discount plus one-time fee. That's number two. Number three is going to be freemium. Three is freemium. And then number four is, let's see here. Let's do lifetime upgrades. That's number four. So which of these do we want to do? One, two, three, or four? You guys can vote in the chat, which is French for chat, by the way, the chat.

1:57:18You guys can write that one down if you want. My feed just cut out, so I think that they're, we're still alive, correct? Yeah. Just the TV died. Okay, got it, it's back. Okay, it looks like we've got, pick your price, number one, yes, is winning. Pick your price is leading the way. You guys are casting votes, I'll stop it at a thousand votes, and then I'm gonna go. So we got 700 votes, we got 800, 750 votes Alright, cool. It looks like Pick Your Price is going to be the winner here. Okay, so we're going with Pick Your Price. All right. I'm going to read the story time. Story time with Alex. Okay, Pick Your Price is on page 97.

1:58:06All right. You guys rock, by the way. Okay. So this is an attraction offer. Okay. Pick Your Price. So this is the visual for it, by the way, which looks nice and cool. I don't know if they can zoom in at all, but that's the visual for the chapter for Pick Your Price. This is in the Lost Chapters book, by the way, which is free because I like you guys. Sorry, it's free for the people who showed up live. Sorry. It's$29, which we'll make available for other people. But everybody who showed up live will get one of these bad boys. All right, so let's read it. June 20th, Austin, Texas. I could see the Texas heat bouncing off the hood of the car as we drove.

1:58:45The roads were empty, not a car in sight. It was like driving through a ghost town, except the town was our home. It was right in the thick of COVID. As Layla and I were driving back from the pharmacy for some goods, we saw a young girl on the side of the road frantically waving a sign. Free car wash is what it had on it. Intrigued, I said, I wonder what the deal is. There's got to be something to it. Want to go check it out. So Layla obliged my whim, as she'd done many times in the past. She just knew how much I love going through sales processes because I'm a weirdo. So I turned the wheel of the car around toward the girl and headed up the ramp next to her.

1:59:20So around the bend, we rolled our car into the main car wash. As we pulled up, a man stood out from his seat in the shade, and we came up to a stop and rolled down the window. He pointed to a pricing chart and exhaled his spiel, which it became clear he'd already done hundreds of times already that day. This is what he said. The standard car wash is 100 % free, but we're accepting donations on behalf of the staff to help the guys feed their families and get through this. We would all be super appreciative. We accept cash, credit, and Venmo. And then he shut up and said nothing. I got the hint and took out a$20 bill.

1:59:57Looking at the pricing board, it was more expensive than the most expensive automated wash they charge for even during normal conditions. He grabbed the$20, gave me a ticket, and waved me on. So I'm always pro-business and I always will be. I felt great about helping a group of working men. And that being said, it had a very different feel than any normal process. Normally, we buy things and don't think much past the transaction. In this instance, my purchase was funding something great, the American dream. As we went through the car wash line, I couldn't shut up about it. I was like, how great was that?

2:00:26Goodwill, lots of new business, cash flow on a high margin service, brilliant. I'm definitely figuring out a version of this for gyms. And in the middle of COVID, our gyms began using this scripting in their sales process and it worked wonderfully. People who couldn't normally close were able to get an average ticket of about$99, which is more than the average low barrier offer for like a bootcamp or something like that. It was splendid. I'll give you the details about how to do it and how you can apply this offer like this to attract new customers. All right, so that was the story behind this.

2:00:55So here's the description. You market the promotional offer as free. When the person gets to the checkout, you give them an offer to pick their own price. You'll explain the benefits of investing more equating to higher investment in their own results. If they're after results, the more they pay, the more they'll pay attention. So here's some examples. So if you had a lemonade stand, you would offer a free lemonade cup. The upsell is, but you can choose to pay something to help the families of the employees. As an additional bonus, the crew offered to make a cup of hand-squeezed lemonade for anyone who pays or donates over$5.

2:01:31And we'll give you a picture to take home with you for any donation above$25. And give you three months of shipments for anything over$99 plus. Maybe this starts to sound familiar. Car wash. Example. So it was a free machine car wash and soap. That's the free one. The upsell is, but you can choose to pay something to help the families of the employees. As an additional bonus, the crew offered to wax anyone's cars who donates over$30 and hand buff anyone who goes over$67 and do the entire interior of the car for anything over$99. You guys catching on how this works for whatever business you have?

2:02:05Here's weight loss. You'd offer a free 21-day weight loss program. The upsell would be pick your price, but most people pay$99. We give this just to the coaches and their families. If you pick$99, we'll also give you an extra one-on-one call. If you pay over$199, we'll also provide our entire supplement handbook. If you pay$499, we'll guarantee you'll lose 10 pounds. And if you don't, we'll let you use that credit towards any service we have. That's an example of another one. So here's another example of a picker price. So this is for a dentist. The offer would be a free dental cleaning. The upsell.

2:02:37Pick whatever you want to pay. Most people pay$99. Notice the way the phrasing works. most people pay$99, which also gets them an extra XYZ or$299 for an extra VYW. If you had a coaching offer, it'd be like, the offer is free coaching and or mentorship. The upsell, pick your price. If you pay$299, you will get the course that goes with it. At $997, you get six group calls on top of this. The zero price comes only with access to the group. All right. So that's the concept. Now I'll give you some of the details that make this work. Okay. To further incentivize them paying, you offer bonuses for three levels of payment.

2:03:14So think small, medium, large. To encourage them to pay something more than zero. Ultimately, if someone doesn't want to pay for the first thing, you've got to give them the basic level for free. That being said, you can and should still upsell them on other products and services during their time with you. This is similar to a limited free, which is a different thing, except instead of either or, you have a limited free is what I called it in an earlier version. It became the decoy offer. But I digress. you have a sliding scale with no predetermined amounts, only rungs. All right, so this also has no max.

2:03:44People can pay whatever they want. They can donate as much as they want. Now, you want to make sure that at the beginning of the sale, you explain that you do have a pick-your-price setup and that the staff is offering some different bonuses. The staff is offering some different bonuses at different levels. But they're not obligated to pay anything. So it'll seem like they're paying the employees, not the business, which for some reason people feel way better about, even though most businesses pay their employees. And so explaining that you're accepting donations and or allowing people to pick their own price will avoid any awkwardness at the end You also get the goodwill of the prospect being up front Now when selling with that pre-frame though You can and should hit the prospect hard with confrontational questions to ensure There'll be a good long-term candidate.

2:04:25This is especially if you sell like service like heavier services So if you feel as though they have no intention of staying just weed them out All right, so be genuine about this. This should feel a little bit more like an interview So the types of clients, again, this is shifting more from transactional like the car wash story to a more relational type sale that you're going to be doing ongoing client work. Okay.

2:04:47This should feel like an interview. So the types of clients you want are the ones who willingly pay and are appreciative. You want people who think with reciprocity. So this is the sort of mini test. This is like a little mini test for that. So ask real questions to gauge commitment level for their own good and yours. So examples. So are you willing to change the way you do X? Are you willing to stop doing why? What if life gets busy? Will you stop showing up? Will you attend all of these appointments? So make sure the thing that you're giving away for free has low operational costs so you can still give it to people without burning out your staff.

2:05:17All right, so save the higher operational cost stuff for the people who choose to pay. After you get to the end of the pitch, you'll outline what they get each level and then say, and this is key, we accept Visa, MasterCard, or XYZ payment. Which would you prefer to use? Then shut up. they will then take out their card and tell you the level they want. It's hard for people to say no, because we obviously attract with free, and we deliver free if they so choose that. But we say, hey, many people do these other things instead, and as a result, if you want, you can just get all these other benefits as well.

2:05:50And when it's framed that way where it's like, hey, the employees are chipping in and doing this extra work, which is how businesses work in general, but for whatever reason, consumers feel way better about paying employees than a business, even though the business pays the employees, whatever. That framing allows many people then feel like, oh, I'll do the most expensive thing. We're benefiting the employees, which is exactly what business does to begin with. Now, summary points. These offers can generate a lot of goodwill when done properly. People feel good when they buy them because it's not a demand, it's a choice.

2:06:18All right, so it pulls on people's generosity or reciprocity. People feel 100 % in control of their own destiny, and you can play up the fact that you're helping folks for free. It sets up a relation based on goodwill and sets the stage for future upsells. This is really key. It sets the stage for future upsells. Again, a money model is not just one of these. It's a series of offers. All right. And on top of that, the conversion rate is super high. So although the average ticket is typically lower with this type of play, it works well in low trust environments because it has so much goodwill loaded into it.

2:06:47So this is one of the easier kind of free upsells or free attraction offers that exist. All right. So pro tip. What did I write for my pro tip here? Paid version, pick your price. Okay. Oh, actually, I remember this. Yeah. So I saw an art gallery use this as well. And this is how they did it. So every piece of art had a price range. And so they said people could choose how much they wanted to support the artist. So for example, they said this painting is between$149 and$299. So I asked the owner how it worked. And she told me that most people pay more than the halfway point because they don't want to seem cheaper unsupportive.

2:07:20So this version is kind of like half goodwill, half capitalism. So I kind of like it. It's just kind of a permutation of it, but give it a try if that type of thing fits your business. And if you're like, well, why did you not include that in the money models bug? So some of the plays that are in here are like, there's just, they're more niche, I think, in some instances. So it didn't match 100 % of businesses. I have a very high standard for, I would say, the$100 million cannon. And so it has to be able to apply to like every single business. It has to be easy to understand. It has to be the most powerful one.

2:07:50This one has a little bit less cash up front than the other attraction offers that I put in here. But I'd say the main benefit of this particular offer mechanism is that it's really easy to sell. It's very easy to sell. So if you're somebody who really struggles with sales, especially in a low trust environment, sometimes even in an online environment where you don't have as big of a brand, it's a great, what I would consider intro offer. And so that's just one of 24 chapters inside of the Lost Chapter. So hopefully you guys dug that and that was kind of dope. So without further ado, let's, what's a fork?

2:08:25What are we doing here? Let's do, let's call some more book buyers. All right. So, all right. Can somebody tell me the name? It's like, is it Sir Mix-a-Lot? It's like, call on one. It's like, my girl ain't doing that thing she used to do. You know that? I keep thinking it. It's like some song. Maybe one of you guys in the chat can tell me. Okay. So we're going to go Onyx Homes, Christian Stubbs. All right, Christian, you're up. You just donated 800 bucks. So we're going to do it. Let's rock and roll, baby. Was that cool for you guys? Did you guys like that? That little reading? I can pick another one if you guys want.

2:09:01Just let me know in the chat if you want. I can read another one. I'll stop between this call and the next one. Hello, this is Christian. What's up, Christian? What's up? You were on the Mosey hotline and we have five minutes. What is the... Oh, kiss, kiss. Thank you, Steve. Thank you, Steve. Appreciate you. Okay. So talk to me. Onyx Homes, you've got 10 % margins. So we want to fix that, right? And I bet you cash flow sucks.

2:09:31Okay. But you're pacing 25. So with that kind of growth and probably extended payment terms, yeah, I can imagine cash is super, super tight right now. Okay. So first off, thank you for donating books. That being said, you're pacing$25 million. That's massive growth. Okay. That's exactly where the$25 million came from. Oh, really? Oh, okay. My bad. Well, then back to$6.2 million. There we go. Okay, great. So that's top line. And then profit margins is 10%. So$600K. Got it. Okay. So construction. Okay. Now. Residential real estate brokerage. Oh, is it? Onyx Home? Yeah. Oh, see, I assumed. Oh, real estate brokerage.

2:10:11Wait, is Sharon here? Is Sharon here? Because we can bring the goat. Do you want the goat? Let me see if I can get you the goat. Okay, Christian, I'm going to call you back in two seconds. I will call you back. Don't worry. And when Sharon comes, and I'm going to have him, because he obviously is like literally the king of this whole stuff. Sure, of course. All right, I'll call you back, okay? All right, bud. All right. So, exciting for Christian. All right, Nelson Ferreira, Vibes Creative. Let's go. What country is 6-1 area code? Anyone know? Okay, I'll do another reading. I saw you guys in the chat.

2:10:47I'll do another reading for you guys. Another reading. Yo, thank you. What's up, dude? Happy birthday. Thanks, man. I appreciate it. All right. Tell me about Vibes Creative. We got five minutes. I want to help. All right. Talk to me. Awesome. So we're a video podcast agency based on Australia. and we grew our business mainly on completely done for you services. Okay, so done for you podcasting. So people send you audio clips and you just post them. Video clips of the podcast, so video podcasting. Yeah, heard, heard, heard. Okay, so they send you video clips and then you done for you make them into podcasts.

2:11:27Exactly. So we do everything regarding the strategy, production, posting, and all that stuff. Heard, okay. And we started coming up with the licensing now of our systems, which we tested. And it worked really well for the first person on scaling their business. Now, we have added a few other people on it. But we're struggling now with the results of some of them because it seems like we are almost overwhelming them. We're doing... Why did you do this instead of just... Why didn't you just keep growing the business that was working? great question because logistically it is quite complicated to scale it oh yeah essentially like profit is is about 40 to 50 percent with it okay you can still do it that way but it it just seems like the licensing could be a bigger opportunity to scale to a million dollar months which is the goal that we have right now okay we're totally wrong though but But the licensing, which is an 11K offer, yeah, that's what we've been thinking in order to scale this.

2:12:35I'm not in love with it, to be honest with you, man. I mean, you're running 40%, 50 % margins, right, in your main thing. And then you kind of started this new side hustle deal.

2:12:50Is this a distraction then? Yeah, I think so. You have a good business. It's like if you took all that attention that you've been spending, all of it, and just put it on, how do I get more customers in? Because I would imagine that your churn is relatively low with the podcasting done for you, right? Yeah, yeah. Clients, at this point, most of them pass 12 months. Yeah. We have 12-month agreements. Yeah. There's a 90-day, no matter what I'm going to leave it, it's going to be in place. Yeah, I heard. I heard. Yeah, dude, I think you have a golden goose that you have 12-month stick. you've got 40-50 % margins, you're doing 1 million plus top line, you just took your eye off the ball, man.

2:13:34You have a good business. Just grow it. Dude, this is my thing, though. It feels like right now that just adding more clients is kind of like, it's the hardest way to do it with the completely done for you. And the team, in a way, is also overwhelmed at the level that we do it. Dude, it's just a fast cash thing, man. Like right now, like you did the licensing thing and it's just like, like do the business. You know, I mean, do you, like, do you want this to be a long-term thing? Yeah, absolutely. We're in to build the number one podcast agency in Australia. Well, dude, if you want to build the number one podcast agency in Australia, don't like just build the number one podcast agency in Australia.

2:14:26I know how attractive it can be to just go sell something that's expensive. I get it. But like the team, you said, is overwhelmed right now. But then you just hire more people to the team.

2:14:38The thing is, it feels like it's almost not the right way. As an example, the goal that we set up is, okay, we're going to launch 10 ,000 podcasts. And if we do it as a done for you like we're doing it right now, which basically for that offer now we charge 10k per month for it so we're telling it to you know seven eight eight nine figure entrepreneurs yeah it just feels that we won't be able to get there right the goals they don't for you that we said it's like okay let's find why can't you have 100 clients so you reckon that that's that's a better way to go like just add 100 clients something completely dumb for you?

2:15:21Well, I'll promise you that doing both will decrease the likelihood that you hit either.

2:15:30So if you insist on doing it, then I would say go all in on it. But I still think the thing is, it's like right now it's shiny and it's new and you just don't know the problems that exist with it yet because you haven't done enough of it. So it's like you're comparing all of the issues of this girl that you've dated for a long time and then you've got this new girl that walked in your life, but you just don't know that she is crazy and that she has a crazy ex-boyfriend and that she's got all these other issues. You have one devil you know and there's another devil you don't and you just see the exterior.

2:15:58You don't know the interior yet. This is shiny object. This is how it works.

2:16:07So then, if you were in my position, right? Yeah. Because you did it successfully with gym look. Yeah, but I didn't own any gym. I didn't own any gyms

2:16:22and also with Gym Launch I don't necessarily know if the decision I made was the best decision it was just the decision I made and you already have a nationally scalable business I was constrained by local which again anyone watching this there's nothing wrong with being constrained local I thought it was limited or I was wrong but whatever so point being you just have to get 90 more clients and you're at a million dollars a month. Like, that's not, like, crazy.

2:16:52So would it be better than to just focus on getting 100 clients and completely done for you, forget about the licensing for now? Do you think that that's the best and most efficient path to hit million-dollar months with this instead of doing the licensing, which is obviously way more profit and we can launch way more podcasts because it's more about passing on the systems, the templates, and we're vetting, training, and placing. But let me make sure, I want to make sure I'm understanding what you're saying when you're saying licensing. Are you just saying that you're selling for$11 ,000, like you're just giving them stuff?

2:17:29Like, are you feeding them clients? Or are you just giving them systems that get their own clients? So what we do on the Don't For You system, we basically pass on to them and we help them one-on-one for eight weeks to install it and running. And we bet, train, and place the video editor and social media manager at a stupid cost to run it for them. So all they do is basically be in front of camera and then we offer on the back end of that consulting. Wait, wait, hold on, hold on, hold on. So I'm going to make sure I understand this. So you're not, okay, so you're not helping people start podcast agencies.

2:18:04You're trying to help people do their own podcast. Yes. Okay, where's the recurring on this? Okay, the recurring in the back end is we place a video editor and social media manager for them to run the system so they don't have to do all the low-level activities, okay? And there is a 50 % margin on that. And on top of that, they can either scale to make more content with that team or they can stay on consulting.

2:18:37Stay on consulting with you. Yeah. Yeah. Yeah. Heard. Heard. Heard. Okay. Got it. Got it. Got it. Okay. So now I understand the offer better. I thought you were trying to help people start their own podcast agency. So I was like, dude, what are we doing here? Just, you know, like just grow your agency. Yeah. Okay. Okay. This makes me feel significantly better. I'm not against it. I'm actually not opposed to it. This makes a lot more sense than the first thing I thought you were trying to do. And that's why I was so against it. Yeah. This is fine. I'm okay with this. And you just want to basically you want to switch your front end, right?

2:19:09You just want to start selling this instead. So we started already and we have got about 10 people. The first person that we got has tripled the business and it stayed with us over 12 months at this point. So you have to proven the concept. Now we're just trying to, basically we noticed that we're having drop-off on the retention and people are not sticking to doing the things because essentially we're going not just launching their podcast and placing the team and all this stuff, but we're also helping them launch their ads for them to start getting leads ASAP and then building as well the back-end funnels and things with them.

2:19:48Sounds like a lot of work. And that's easier than just... Yeah, that's easier for you?

2:19:57Oh, shoot, I've gone way over on this one. I'm focusing more on getting them bigger results. Okay, I get it. at the end of the day, man, all we have to solve for, let me just tell you all you're solving for, so you can answer this with a math question rather than a feeling question, all right? Then I got to go to the next one. But what we have to solve for is that you need to have the maximum LTV and conversion rate. So basically, if you have something that sells to more people that more people want, which is what it sounds like this is, does that sound right? Yes. Okay. More people want it, so we have higher conversion rate.

2:20:30Fine. Is lifetime gross profit on this offer superior to the other offer, given the back end? Absolutely, yeah. All right, well then yeah, then it's a superior model, fundamentally. So more people want it, more people convert, and they're worth more. That's a no question. And so then the issue that you're going to deal with right now is you just have transition from the old business to the new business. And the way that I want you to do that is just keep selling this on the front end until eventually this surpasses the total revenue and profit of the other business. And then basically just don't replace the customers on the done-for-you side.

2:21:05Okay? Just don't replace them. Just keep selling this instead. Does that make sense? Yes. Okay. We're looking to just get like a small group that can eventually become, you know, the next Alex or most of the done-for-you. Well, cool. And then all you have to do, by the way, is if you get done-for-you clients, just sell them into the base of these other podcasts and then just take a spread. And then you have 100 % margins on that. Cool? got it i thought that was pretty clever all right rock and roll appreciate you man thank you for donating books and uh thanks again thank you dude all right see it all right christian stubs we've got the man the myth the legend uh christian if you're watching we're calling you right now so we've got uh we've got the the michael jordan of real estate so onyx homes all right i got i got the michael jordan right here on the line uh for everybody who's everyone who's watching, Sharon is president of acquisition.com.

2:21:57And he was president of Real Brokerage, which is$1.2 billion, publicly traded company that literally does real estate agents. And before that, he sold Telus, which went from$50 million to$3.4 billion, also in the real estate agent space. And so I think he might be able to help you out, Christian. I'm just going to throw it out there. And thank you for donating 800 books. I'm getting you on demand with the goat himself. all right so talk to us so it was six six six million top line right I hear that six million times around on pace to six and a half ish this year we did for last year ish we're a team model so we are the generation for agents right so we we can write leads for our agents and then we're a Zillow flex team so the big chunk of our business and they they take a big 40 referral fee off the top so our main focus has been we're going to your band days our big focus has just been basically in-house deal flow it does not have a referral fee attached to it okay um the question i was asking um for you specifically alex was more of a strategy question on um should we add on like the traditional brokerage services outside of just our team model, which is more like the real model, if you will.

2:23:16What do you mean by traditional brokerage services? Yeah, so we run the traditional team model and then if somebody's basically not a fit for the team and just wants to be a part of a brokerage, would we want to do that? Yeah, so if you have the infrastructure, if you have the infrastructure already, then you'll offer that. So I'll tell you how to think about it. You want to think about it as a minor league, major league model. So the minor league, major league model essentially is like, hey, if I, Sharon, am doing well in the minor leagues, you promote me up to the majors. And for some reason, if it doesn't work in the majors with your team model where you get all the lead flow, et cetera, then you get me back to the minors.

2:23:53And when I'm in the minors, I still get all the other services. But then I see the guys in the majors doing well. It gives me an aspirational frame to do better. So the minor league, major league model does really well in this process. As you grow, what you want to add is also a JV model. So you get the new agents coming on board. so if you can get a new agent development program then you have a jv model a minor league model and a major league model and you have a clean ascension among all three got it that makes sense and you use the team is the people's team is the major oh yeah absolutely absolutely no yeah whatever brokerage is fine but however i would tell you this um you want to get your zillow portion to a third or under of your business and keep it there because that 40 % referral fee is not going down anytime soon.

2:24:38That is 40 % off your gross margin immediately. And so now you're doing 40 % off. So you have$100, take 40 % off with the$60. Even if you do a 50-50 split, that's$30 each. And then they have taxes. So the average agent is making$15 and$100 commission, which gets not fun very quickly. Yep. I mean, that's our entire focus. Like from the van days, that's all we're doing. Yeah. And a very easy way in your minor league model, you can cap them out too you can just say hey once you pay fifteen thousand dollars to the brokerage that way you know that you can expect fifteen thousand dollars or whatever from a cap person always contributing to a brokerage for the same amount of flat fix and become super sticky yeah for sure rock and roll yeah for sure i was going to ask on on geographic expansion we're looking to branch on the adjacent market from orange county out to riverside yeah um what should i what should to be looking out for knowing this is the first uh first expansion for context we have 72 agents yeah yeah we've grown two in two years here in orange county that's awesome by the way that's awesome that's awesome that the key part of expansions where expansions break is that they don't have the ability to duplicate your current model in the new expansion market so you have to pre-fund a little leadership in the expansion market otherwise you're not gonna you're gonna say wait how do i not have a home-based expansion why am i not getting the same results so if you if you just think that the mothership is going to serve the expansion it's going to be difficult because geographically that market's not as tight so if you can get a local market leader that can then train up and duplicate your model then it will work otherwise it gets very hard to duplicate the model that you've built in a new market you think you can but there are market specific dynamics that are super difficult to do so if you can get a leader there and that leader can duplicate and that can duplicate your model then it works better so i would do top down in that market not bottom up that's exactly okay good awesome man congrats but thank you so much for the donation awesome thank you guys appreciate you man and thank you for on behalf of the entrepreneurs we're getting the books so thank you man yeah absolutely oh by the way uh your ai gave exactly the same answer strong just amazing we're i'm i'm i'm replaced i am unnecessary we are on brand which is good yeah well dude i appreciate thank you i appreciate you for anybody who's curious, the AI that he was referencing, that's what comes with this.

2:26:53So if you donate over 200 books, you get ACQAI, which is 226 one-on-one consultations that we did with 226 different businesses. So if you're like, oh, I wonder if it'll work for my business. We probably did not only your business, but multiple businesses like yours. It's like, wow, that was the advice that somebody who was in the same space got directly from you guys. It's like, yeah, there you go. our very pretty representation of this because a whole stack of notes probably isn't as compelling. But yeah, no, it's, I mean, this is, we spent two years training this because listen, we own an advisory practice.

2:27:25So we are AI enabled. And so my entire life, I've always just made more by giving away the things that serve me than holding them back. And so you guys can get access to this, which is what our team internally uses to analyze businesses. Because I was like, how do I, how do I, how do I take all the years of owning physical products, SaaS, B2B services, B2C service, brick and mortar. I've owned all these different businesses in my life. And I was like, well, like I have lived the weirdest entrepreneurial journey because I've had all of these different experiences, which has only made me suited, like best suited for one thing, which is like to help other entrepreneurs.

2:27:57And so I put all of that in here so that this can basically know as much as I do and can give you, you know, answers specific to you and your business. And so if you donate 200 bucks, you get that, you get the 12 playbooks that are there, the lead system, the sales system, the delivery system and the profit system. Because there's the four biggest constraints after doing 1 ,000 plus deep dives with businesses. So paid$35 ,000 for our team to do an analysis. Those are the big four problems. And most of those problems don't have one solution. They have multiple things that have to get solved. But we put all those solutions there.

2:28:30And then we also have an ACQ implementation workshop, which is next week actually. And so that you can actually learn how to use the tools to actually help your business deconstrained. So that's all if you donate 200 bucks. I like that's because he brought it up. That's why. And I know we're going to read questions in the chat. Okay. Beyond that, I saw a couple of other questions in the chat. Lost chapters. This is going to, everybody who showed up, you'll get this on Tuesday. So all the free stuff that was on the launch will come to you on Tuesday. So today's Monday, so it's tomorrow. Okay. And the reason for that was because I just didn't want to distract people.

2:29:00It was like, we're focused on the launch. And then after that, everyone get all the, all the free stuff on that day. So Tuesday you'll get this. Now, other people asked audio book. The audio book is also a part of the free stuff. The free stuff comes on Tuesday. Beyond that, thank you for the Chris Brown. I saw many of you said the song is Kiss Kiss by Chris Brown. So thank you. Noted. Also, some of you guys asked about the timer. So the timer, I don't know if it's above the screen somewhere, but the timer is that this launch offer, which is if you donate 200 books, you get all this other stuff free.

2:29:30It expires when the clock goes to zero, which is midnight to night PST. So depending on where you live, if you go to sleep before that, then it goes, then the clock ends when you go to sleep. All right. Um, so that's the deal. And what we're doing right now is we're calling people who are donating books, but you guys requested an extra chapter read. So I'm going to do one more chapter. Um, and then we'll call another one. So we're going to do, let's do this one. Okay. So let me see which chapter we're going to get. Let's do, um, let's do, let's do so much good stuff in here um this is going to be probably used by a lot of you this is like a yeah the discount you jen this is for you so discount discount chapter okay so this is discount plus one-time fee so this is a different structure um i'll show you guys the visual this is what this chapter looks like this is my original hand drawing by the way this is uh not ai this is just just to Alex.

2:30:28All right. So let me, uh, let me show you how it works. All right. So I was, uh, this is spring of 2015. I was walking out the door from my Le Havre location, sunbaked, the black asphalt of the empty parking lot. Uh, it was midday before the afternoon rush would begin just a few hours before I could stay, take a step forward, uh, to my car. A man quickly approached me almost out of nowhere. He said, are you the owner? And I was a bit startled and I was like, uh, yeah, he said, and before I could ask what he wanted, he plowed right into a pitch. He said, my name's Owen. I'm a personal training manager of a gym that just went under across town.

2:31:00I've got a group of trainers that just want to sell personal training packages. We do about a hundred grand a month in personal training sales. We just need a facility to work out of. And I said, well, we don't really offer personal training here. I said half lie because I just didn't want, I didn't like the guy's vibe. He didn't seem trustworthy. So I started to turn to my side, you know, show him that I wasn't really that interested and began working my way towards the car. And he realized that he needed to change his approach. He said, I promise we're a self-sufficient team. I can see through the window that you guys have a lot of dead space, even when your sessions are going on.

2:31:28We can just help you monetize that area. It'll cost you nothing. It's just upside. I said, well, it'll cost me time and attention. And most importantly, it'll cost me the goodwill that I've recruited my customer base. He said, no, no, no, it won't even cost you your customers if you don't want us to. We'll go get our own leads and sell them. We just ask that you give them a discounted month up front. And then we charge an enrollment fee, which I give to my guys as commission for the sale. So whatever they can close for the fee is theirs. That's how we do it. It'll cost you nothing. I said, well, I'll think it over.

2:31:56After thinking it over, I decided I didn't want a foreign group of trainers and salespeople that I'd never vetted walking around my gym representing my company. But I did notice the offer structure that he presented, which was a discount plus a fee. So he clearly seen the success with it that much I did believe. And this is the first I'd heard of this monetization structure. It both attracted customers with the discount and liquidated commissions and acquisition costs through a fee. So here's how works. So the description. So you charge a discounted rate for your first term or period of service.

2:32:25You then charge one or more additional fees that you've made up, just like free with fee, which is an old name for a different thing, which is just also in The Lost Chapters, which you would have read if you have this book. Okay. So you can waive some and charge others, waive them all or charge them all. So it gives you a lot of offer flexibility depending on the strength of the salesperson. So this offer will tend to surprise fewer people since they already came in expecting to pay something. This is why it's a discount rather than free on the front end, which is one of the key benefits of using discounts over free in general is that people expect to take their credit card out.

2:32:57So let me give you some examples of this. So if you have any kind of recurring service, you can offer 95 % off the first month,$1 ,900 off the first month or first month for$100. So what I just described there, what I just said was three different ways of describing the same discount. So by the way, for those of you who use discounts, there's multiple ways you can describe it. And so you can test out the heading. So like, let's say, let's say I have a thousand dollar a month thing and I offer a 50 % off. Okay. Let's keep that, you know, super simple. So if I'm advertising, I can say 50 % off first month.

2:33:31Number one, number two, I could say, uh, it's a thousand dollars. So I can say$500 off instead of 50 % off. Um, I could also say, well, I used an exact 50-50 split. But I could also say$500 for the first month. So I'll use a different example of $1 ,000, but now 20 % off. So I could say 20 % off first month. I could say$200 off first month, or I could say$800 first month. All three of those are different ways of making the permutations work. And so if you're doing any kind of discounts, and if you follow the way I do it, I prefer all my discounts to be 50 % or higher. Because for me, a discount has to change behavior.

2:34:08So if someone's if 10 % discount 20 % discount like it doesn't like in my opinion people were already going to buy and you just gave away margin I have to have a discount that's sufficient enough That's actually get somebody to buy or get interested who otherwise wouldn't be and that's how I think through discounts And so you're like why don't want to discount my service that much? It's like well duh. We don't discount our service that much So what you do is let's say you've got five things inside of your service You say instead of saying I'm gonna give you 20 % off. We say I'm gonna peel this thing off and then make this thing 80 % off.

2:34:37And then these are still 100%. Does that make sense? So you give the 80 and then you upsell the four. That's how it works. Now, those are two examples. That's how you think through displaying it. So monetization. So I gave you three examples. Here's how you monetize. So they come in for the first month for 100 bucks, but they still get charged a setup fee. And so all in all, they'll get charged whatever you want as your setup fee, even though you gave the big super discounted first month. And then they go straight into recurring. And so from a monetization perspective, you just add up the discount plus what you charge for the four and then you put that together.

2:35:13And that's how it works. All right, so that's if you have a recurring service. If you have a defined end or a program like six weeks, 12 weeks, whatever. Now we had a physical therapy earlier, my buddy Cameron. Like he has a defined end service. Like we have to do X period of time. You would say to the same degree, 88 % off the first month selling a 12-week program for like$3 ,000. This is like perfect for what he does, okay? So monetization. So you say it costs$1 ,000 a month for three months, but you get 88 % off your first month. So that's only$120. And we have$1 ,000 setup fee. So they end up paying$1 ,120 for their first month and then continuing their next two payments for$1 ,000 each.

2:35:55And so we just did this. That's all it is, okay? Now, you have to listen to whatever laws in your area in terms of advertising clients, all that stuff. It depends on every nation, every local area that you're in. But as long as you follow the law, that is how that works. Now, let me give you a couple of the details, some of the specifics. So the higher one-time startup fee, the lower the churn. All right. This is where the concept of big head, long tail kind of weighs in here. The higher the barrier to entry, so too becomes the higher the barrier to exit. So John told me, so John was an early mentor of mine, when he had a tanning empire, he said he had a$100 signup fee for a$10 a month membership.

2:36:27He said the churn on those clients was next to nothing. Whereas the clients who signed up for$19 down and then$19 a month turned at a way higher rate. So this means you can use made up fees that we've been talking about, well, talk about in this book, to actively decrease your churn and increase the investment of your prospects. So this helps them and you in the long run. So everyone wins. So when people pay, they pay attention. So this is especially important for services where you require something to be done by the customer, getting your information, filling out forms, showing up at certain times, making selections, changing behavior.

2:36:58So like physical therapy would be an example of that. So if you need someone to do something in order to be successful, then more times than not, it makes sense to charge a one-time startup fee of some kind to get them invested in the long run. All right. So you even have a massive disparity between, you can even have a massive disparity between the setup and the recurring fee. So a good friend of mine who runs a multimillion dollar online weight loss coaching business charges$5 ,000 to start and then only$267 a month thereafter. Think about that. five grand up front and then less than 300 bucks a month afterwards.

2:37:26Now his client lifespan is more than two years in an industry where people turn out normally in like three or four months. And so this large upfront son gets clients invested in the process and makes leaving almost insane. It's like, I just paid$5 ,000. Why would I ever quit? Right? And so you guessed it, if they leave and want to come back, they have to pay it again. So it keeps these people committed, especially when they have to do their part of the work to achieve the result that you sold them on, whatever that thing is. Now, to be clear, whatever the reason is for the one-time fee, even though it's completely made up, just be clear about it.

2:37:58This fee should not be taken lightly. It's also something that you should bring up with every customer. You are doing the work, so you might as well let them know exactly what you're going to be doing for them. So again, here are the four steps to creating a one-time fee. You pick your fee name, you pick your fee price, you pick your reason why, and then you start charging it, discounting it, or waiving it. That's how it works. And you know, what's really interesting is that even having the fee is incredibly powerful because even if you never even want to do it, you can literally waive it for every person who walks in the door and they'll be thrilled.

2:38:31Like at the very least, like they'll just be thrilled that you did that. So think about it differently. I could say you get a thousand dollars off signing up for my thing because I invented an onboarding fee. And then when people come in, I have now invented this fee that I will also not charge them. And then you can go straight in continuity. Again, you have to listen to whatever the advertising laws are in your region or area. So, consult somebody who does legal stuff like that. Can I ask you something? Yeah. So, there's two notes. One comment and a question for you. The comment is, if you noted what Alex said, he talked about the discount actually having to change behavior in some way.

2:39:05So, just don't think that, hey, I'm just going to do this 5 % discount and it's going to work in some way. If the discount, in your opinion, is not going to change behavior, as Alex said, you're just giving away margin. So please consider that. The second thing, Alex, love your comment on this. There were several thoughts on the chat about, hey, I just don't discount. So how do you respond to that? Is your thoughts around that comment? I think it's fine. I mean, like that's a, it's a business decision. It also depends on what you do. You know what I mean? I like there's promotional. So what I don't do is I never present a price and then change it.

2:39:41That is how I, that To me, that is where you lose leverage and then you enter these haggles. So the price is the price. We've already calculated the price. And the discount is also the discount. So it doesn't go up. It doesn't go down. That is what it is, period. And so that's kind of how I see this. But no, my strongest, the thing that I'm most against is, hey, it's$1 ,000. And then, well, I can't afford$1 ,000. You know what? I'll do it for$900. Hate that. Never do it. You'll lose all the credibility. It's like, wait, so you would have just gotten me. You would have bought it for$900. like now I hate you now I think you're like well why do I believe 900 why can't I get it for 800 right you start you open up this can of worms but if you say this is a thousand today it's 500 and then tomorrow it won't be you dictated the terms and so that's up to you but if you don't want to like these are all like all of the stuff that we've got are mechanisms they're different things that are suited for different businesses and you'll also note this is from the lost chapters which is things that I didn't fit for every business the money models book contains the to change the mechanisms that I think work for the vast majority of businesses that you won't have a real problem with.

2:40:45Now, I did see in the chat, do we get any free stuff without donating books? Yes. I get four free things. Not just one, I get four. The Lost Chapters for anyone who is there live. All right, so you get an email with that stuff for those of you who registered for the launch. The Money Models audio is free and you'll get it in an email if you registered for the launch. The Money Models course, which I think is like eight or nine hours, the whole system, that includes every single one of the attraction offers, downsell offers, upsell offers, continuity system, all that free. And you get 90 days of school to use it free and a lifetime lower rate of$9 a month afterwards.

2:41:18Okay. So all of that stuff comes tomorrow. That being said, all the stuff you see in this frame is if you donate 200 books. And the reason for that is because I'm trying to get as many books donated as possible so I can get a book in the hands of every entrepreneur in America. That's the big goal. Okay. Now that's why we're doing this whole thing. That's why we're doing this drive. But the big clock at the top, when that strikes zero, all of these bonuses disappear. So if you've been on the fence, you're a last minute person, this is the last minute. Okay. Let's call, let's call, uh, let's, let's roll.

2:41:47What do we got? We got, we're bringing that back up. Okay. Here we go. So let's go with survey says, survey says, all right, we got some more 800s. Okay. We just got an 800. Here we go. Okay. Andrew Johnson, you started 800. Thank you so much for giving you a call.

2:42:09This is Andy. What's up, Andy? Hey, Alex. What's up, dude? Ocumed. Yeah, that's my business. $18 million top line. Congratulations, dude. Stud status. Okay. $1.5 million bottom line. Heard. We got five minutes. What's the constraint? What can I help you with? So brief context. We do employment medical evaluations. mostly we're selling to large companies or large employers, cities, counties, defense contractor agencies, those types of companies. Our best client is going to be someone who's geographically dispersed because we manage network medical providers all throughout the country and then in about 50 other countries as well.

2:42:55And so it's kind of our target audience. It's a fairly cost competitive area. We mostly get clients through competitive RFPs. occasionally through word of mouth. We're currently doing next to no advertising or marketing. We basically grow through word of mouth or the occasional trade show and the R &D process. I think one of the challenges is two challenges. One, I think we need a money model, an improved money model. And so I'm excited to get my hands on this book and work through some of that. And something that can bring clients in a little bit more easily. and then over time, you know, increase the ticket price.

2:43:33Because right now, you know, we're perceived as a commodity in lots of instances, but how we operate is very different. We have really good customer retention, like 95 % plus. And so, you know, if we can service them in any form or fashion, then we typically can keep that going for, you know, years or decades. Yeah, heard. So, aside from my model, the other thing that I think we could use is better awareness. I think I don't know if people outside of our specific niche of defense contracting know who we are. And so I'm looking at potentially getting into some sort of content creation of some sort.

2:44:14Yeah, exactly. Probably LinkedIn, getting as B2B as our business. So no experience in that whatsoever. Don't post content at all. and I'm on with the experts. So you brought up three different things. So let's just take them one at a time. So I want to basically increase the brand so I have more pricing power and more inbound deal flow. That's number one, right? I'm doing this in reverse order because I'm just rewinding what you said. The next thing is that you need pricing power. So you were selling commoditized good and so it's like, how can we create more pricing power? So brand is one element of that and the other is just the value itself, right?

2:44:54And so I don't know if you've been on this live stream that long, but the problem that you're having is a super common one. And basically, we need to pick one angle so that you can decommoditize. And so Shrad and I were talking about this yesterday for a different business, but it's like you have the price and then you have you have sorry, you have the service and then you have the consideration. Right. And so we only have commoditization. And I know you have to respond to an RFP, but there's still the benefits that you can throw in on top that make your service different because you can still win in RFPs without it being lowest price.

2:45:32So do you think you can win on speed? Do you think you can win on ease? Or do you think you can win on risk more than anybody else? yeah i think we do particularly well um on risk and speed okay so then basically again i i i sound like a broken record with this particular thing um because i just it you want to get stats to demonstrate the cost on a global level and so the big thing is that you want to approach their business from a holistic perspective rather than try to win on a component of the business and so So when you can look at the whole system, you can start pricing against value, which is what they are ultimately deducing from the RFP.

2:46:17But they limit the scope because they think that by doing that, they're going to get the most competitive bids. But you just need to have a better understanding of the business overall to understand the other levers so that you can reframe the pricing so that you can decommodicize against the other bids. Yeah, so I think what you say is like the proof of how we save the money through other things that are in our price. but that they're spending money on and they're just not captured in the fees that we charge. Can I give you a hack? At the end of your RFP, put one to three case studies or ideally the case study that is most similar to the client that you're bidding for and then have that client do the sale for you.

2:46:59Like even though they weren't the cheapest, boy, did they save me the most money and this is how they did it. Speed and risk. You know what I mean? And then they hit on the buttons that you hardcore focus on within the RFP. Awesome. Yeah, so you'll win more bids just by throwing that in. And what's crazy is that no one does that. Correct. It's like no one does it. Yeah. Do you want to throw someone in front? Yeah, I have one idea. By the way, the case study closes. Whenever you think RFP, think case study closed. Because everyone reads the RFP. And all the folks in the RFP mode are instantly commoditized, like I'm looking for the price mode.

2:47:34But once they see that and they also see the case study, then if the delta is not that much you get you get the win the second thing i don't know if you can do this andy which is um is there any way to to include a provision in the rfps which we've suggested in the past where uh any new services that you can probably do consulting for that you would automatically charge those at a 25 discount and all that it means is that you're opening the door for consulting one-time consulting opportunities that you can do during the term of the rp rfp and And they're like, oh, mash, you know, Alex is such a good guy, even though he's not only giving us his RP, if he chooses to do one time consulting within this, we can also get a 25 % off.

2:48:13So sometimes what I found there is once you get, you can still get a one time kind of consulting job, which you can then turn into adding to some recurring revenue after is there, maybe that's an idea. Also, depending on the size of the business, you've probably seen this before, but it's significantly harder to get approval to get the bids start to get the money flowing. but once the money spigot is turned on it's much easier to adjust scope and get an increase in budget than it is to get the budget turned on to begin with which is what what shran's doing kind of like you you have your rfp thing one which is what everyone's doing but then you add in the case study piece which is thing two which differentiates a little bit more and then basically resells the primary sales points of the rfp but then in addition to off in addition to that you're saying hey don't worry about it i also have this uh you know one-off consulting so if you do find someone cheaper i can help you bridge the gap but now your foot's in the door and then you can cross sell their services, but now you already have a rider there.

2:49:03And so they can start, you can start basically inserting yourself in these other processes. Again, this depends on the size of the business and how the procurement process works. And if you're curious, anybody who's watching, like why I have any knowledge of this, the first thing I had out of college was I did space cyber and intelligence for a boutique strategy firm. And we all did was a public sector contract. So the RFP world, I told you I have this very odd mix of that. But I think the way to think about it, I think you nailed it. The way to think about it is every time you're selling something to a client, if you're in a sales process, you should be thinking about it from a value frame as to what can I hit.

2:49:36And you should be thinking about it from an RFP frame on the floor. Every sales process, people are always like, well, what is my USP? No, they're thinking about it. When people walk in and they're saying, some are RFP minded buyers. So you have to have the RFP frame on the bottom, which whenever you think RFP frame, think case study close. And then when you have the value frame, you can say, here's all this other thing I can do for you. So if you just approach any sales conversation as a synthetic RFP conversation, you're chances of winning go up significantly? Yeah, it's like the frame that and like, I think giving great examples of this of like, when we want to set the frame for the entire conversation, like the first paragraph of an RFP, obviously, the pieces that are required, but I want to set the frame as early as possible on this.

2:50:14So that I can say like, this is how we approach these things. Like if someone were to say, hey, get me the cheapest leads, you don't actually want the cheapest leads, you want the highest ratio of dollars in to dollars out from customers, which might not and very likely will be not the cheapest leads, but the best leads that convert at the highest percentage at the highest prices. And so, again, it's like we have to have some very simple analogy that we can reframe and decommoditize ourselves. So it's like, listen, you want the best return, not the lowest price. Yeah. Understood. One question about the case studies close.

2:50:48Yeah. Is it effective if I can't disclose the customer, like they won't actually do the talking for me and i have to anonymize it no i think it's fine yeah it's fine yeah uh and you can whitewash it too yeah you can whitewash it and the way to do that is to provide as many meta detail details as possible about the customer so like for example if you see you know alex will talk about providing proof in a testimonial if you cannot put alex ramosi you can say ah baltimore maryland right you can do you want to go as close to providing the the reasonable believability of that uh of that testimonial as possible.

2:51:23So get as close to it as you can. So, because I know you donated 800 bucks, so I appreciate it. Um, but inside the proof playbook that's in the sales system that you have for free, um, there's a, the 13 point proof checklist. Basically when you're going through the case study, check off every single one of them that you can, that's just not the name. Right. Makes sense. Cool. So good, man. Hey, I want to say one last thing for everybody, just for them to understand. And people will talk to, Alex will share with you a lot saying, you know, I need to build a brand right away. But this is a great example of building an awesome business.

2:51:57And he said that I've never posted any content. You can still run a great business. So first off, kudos to you, man. Like you built a great business. Yes, it's a little commoditized, but you now have a chance to, you have dry powder to build and stack a new money model on top of it. So kudos to you for building this. It's a great example for others to saying, hey, you don't need a brand all the time. You just need a great money model. well a lot of what's happened recently has been you know secondary i think to some of the readings and learnings from alice i really appreciate you and and sean your advice today and in the past um it's gone a long way and so i think you're you're really hitting the mark in terms of helping entrepreneurs thanks man i appreciate that thank you for donating dude all right thank you sir talk soon best luck with this let us know how it goes thank you all right All right.

2:52:42So that was, I think that was Andy. Yeah. So now we're going to go, um, Cody stocks to trade. Ooh, ooh, ooh. Uh oh. Ruh, ruh. Stock to trade. What is this? All right. We got some, this, this, this, this could go, this could go in a couple of directions. We'll see. 84 million top line. Hey, how's it going? Mr. 84 million top line. Let's talk. well uh you know i wish i owned the company i'm just a ceo here just to clarify but uh i want to ask you you know in in that kind of position uh one of the big things is product right one of the big parts of product is like before you even get to the offer right it's like when you're building the product um can you tell everybody what business you're in real quick yeah so we're like if you think of trading view just plug in a different name i don't know what trading view is is it like a stock trading platform uh no it's just like a charting platform so okay just go in like candlesticks etc okay yeah and so you know what we really offer is like tools right okay and then education on how to use the tools okay obviously never advice okay just gotta you know put that out there yeah the uh the big thing though is you know we're we've already tapped into like using customer i'm like well what do they want what's next um and so now it's going beyond like what are they asking for and trying to figure out the step like the step beyond that a little more of like a visionary of like before they even know they want it you come up with it right and we've had a couple of those you get some grand slam offers yeah they go really well okay you know uh but yeah are you owned by private equity or by founder uh by founders okay got it okay heard so it's you know the big thing is uh like what's a model a framework a method or finding that lightning in a bottle so interesting because i have like such a different angle on this yeah go with yours yeah yeah so like i think i think thinking like okay how do i you know revolutionize the space it's so like you've gone to you know how old is the business oh geez like 2009 okay so it's established and you've had been growing every year uh yeah about 50 percent for a couple and then you know yeah we'll see still good so i'll give you my my honest opinion um my honest opinion is like i wouldn't break something that's working really well i'm growing 50 percent a year because like all of the all of the extra effort of like we're gonna i almost fell over my chair um i was yeah um all of the extra effort of like where is this lightning in a bottle um i have found the lightning in a bottle comes from looking at my existing thing that people already want and like and turning it into something that they already want and love and so let me let me break that down from a tactical perspective so i think of creating excellent products as looking at the end state looking at the end goal and then saying how do I remove everything that sucks about getting this outcome?

2:56:19And so I think about excellent products as removing 100 % of friction rather than how do I make something that's new and exciting? Because marketing is about new and exciting. Product is about the thing that everybody already wants, but removing everything that sucks about getting it. Yeah, yeah, 100%. And I think one of the big things is you have to tell everyone it's hard, right? Like you have some sort of regulation. Of course. But like with the product, you know, our biggest hits happen when you figure out how to put the magic potion together and it takes all the friction out of it. OK.

2:57:00And you can, like you said, then the marketing does a great job of finding all the reasons why they should buy. on trying to find like what's that next product that could be that same potion but in a different area right and there's so many actors in our industry like I'm not just limited by oh well we did it it's done you know I have a good question you have a question for you so do you think that if if we could take your current product in and of itself it works it looks like is working well and could you i'm assuming based on that it's a technology platform could you add more users to it and marginal cost for that is zero it's a tech margins right it's definitely not tech margins i wish um but it's you know the cost to acquire a customer is pretty We, you know, one of the first things I did when I came in is we moved cost to break even from 90 to 10 days.

2:58:09That's great. Okay, that's great. And then, you know, then we have to make a decision of, like, how do you grow 50 % as you just choose not to make money, right? And you're like, okay, well, I can afford to spend more. Yeah. Well, do they stick? Do the customers stick? Yeah. Yeah. About one year. Well, then, I mean, if that's the case, then, I mean, kind of, that is the game. I mean, you're just trading like, so, I mean, I'll tell you something that a long time ago a mentor explained to me that, like, this may seem obvious to you, given you that you're in the space that you're in, but I'm also saying this for everybody else who's listening.

2:58:42So, let's say, simple math, right? You know,$100 million a year, and you've got$10 million in profit, all right? That$10 million in profit, if we take it as income, right, we're going to keep, you know,$6 million of that, right? Right. And then great. Now we put it into the S &P. We put it into real estate, put in whatever. Right. Alternatively, if I take that$10 million and then I put it back into advertising and that$10 million turns into, let's say, first year, it turns into$30 million of revenue. Does that sound realistic for your business? Yeah, I mean, it's essentially what we did. Okay, no, no.

2:59:21Yeah, let me finish. So$10 million goes in,$30 million becomes revenue, and we're valued on EBITDA, right? Or are you valued on top line? We're probably closer to top line. Okay. That's fair. Okay. So if we're measured on top line, then we just created$60 million of enterprise value from the 10 tax-free. And so to me, it's like I'm choosing option A, I can take$6 million net of tax and then put it in the S &P and let it grow by 10 % a year. Or I can take the 10 and then turn it into 60 tax-free in that same period. Now, obviously, the only real question there is risk tolerance. It's just like how much am I willing to bet more on this existing business?

3:00:07But from a dollars and cents perspective, I mean, it's a 10x difference. Yeah. So that's, that's how I think through these things in terms of your question of like, if I'm the founder and I know you're not the founder, but like if I, if I were the founder and I'm making this decision, it's going to be a hundred percent. The question, the question is down to the founders appetite for risk. Yeah. Fundamentally. But yes, if I were in your position and I did say like, I want to go take the hill, I'd be like, well, let's just take the 10 and then put it in and go from, you know, 84 to the grad to, you know, 110 or 120.

3:00:37And that would be the plan that would be my approach yeah i'll give you one i want one product hack that you that you shared so anytime you're thinking about hey i need a new lightning in a bottle i'll give you a very simple hack to think about the world right uh take your business and essentially think about it as an analog like a think about it like a course it as in as a done kind of do it yourself where hey i get in here i do these 10 modules i do this 10 effort and then then at the end I get this Y result. If you map that 10 modules out, then and you have a product or a system, you can say, which of these 10 modules does this product or system solve?

3:01:13So now your product development is actually tied to your marketing too. So you can go to the marketplace and say, if you were a trader, you would, and you want an analytics platform, you'd come in on day one, and you would have to do these 10 things over three months to get this X result, and you'd have to do all the work. Instead of doing these 10 things, you only have to do these three, because these seven things, the product already does. So anytime you want to hack product development, you want to think about it as how do I give people a clean path and then take away things from that path that the product does.

3:01:40And that allows you to probably iterate on that faster. Yeah. And following and I'm sure you do screen recordings and like, you know, vigorously like watch people actually use the product. But like that is where all the big innovations in my life have come from, from a technical perspective, which is just like watching people stumble, like literally watching people over the over their shoulder and like watch them get stuck. And the thing is, it's sometimes like the hilarious things that are tiny that create the friction that end up like ruining whether something successful or not. Absolutely. I couldn't agree more.

3:02:07I really appreciate the help today. No, I appreciate you, man. Congratulations. Yeah, great job, dude. Thanks. Take care. All right, rock and roll. Okay, so real quick, my screen here turned off. I don't know if you guys know this. So I'm flying blind right now because I want to see, you know, what's going on. But I'm going to wager that some of you guys would like to hear. Actually, we'll do one more, and then I'll read some stuff if you guys want. So let me know in the chat if you guys want me to read stuff after I do another call for those of you guys who just bought books. Okay, so let's see who just – oh, we just got another donation.

3:02:40Okay, so let's go. Excuse me. My phone's blown off. Okay, hold on. Let's go. Sean Clayton. Okay, so Sean, if you're watching, I'm calling you right now. All right. You just donated a book. So thank you, Sean. Science of Abundance. This could go. This could go either way. Let's find out. Science of Abundance. 500K top line, 300K bottom line for anyone who's watching at home. Okay. 500K top line, 300K bottom line, Science of Abundance. We got five minutes. Ramosey Hotline. What is the thing that is limiting your growth? How can I help? Well, great to meet you. The thing that's limiting my growth right now is I feel like the initial version of my offer when it goes out to market is not as sexy as it possibly could be okay I have a spiritual coaching practice okay oftentimes people don't really hook into that really quickly because it's thick too ethereal yeah looking to make it systematized clear to the point to where it um just just to where they they understand what they're getting they understand the value they get out of it and then spinning off a very specific offer that allows for exponential growth.

3:03:47What do they get? So currently what they get Not the features, the outcome. The outcome is a centeredness. It's a true centeredness that is removing the patterns that they've got in their life, the childhood trauma, cycles that they've consistently been in. That's what they get. They actually truly understand the level of awareness to where the consciousness that they have been taught into, they break those cycles and they walk through the door to understand the depth of themselves. So it's behavior change. True. Yeah. Okay. Got it. Thank you. Great. Great. So you do bad stuff. Stop doing bad stuff.

3:04:24You want to do good stuff. Start doing more good stuff. Yes? Exactly. Fantastic. Okay. So I think, you know, I think you probably just need to change your vocabulary because even the name of the company, Science of Abundance, and then you said that we teach, you have a spiritualist thing is what you said? Centeredness. Centered. Yeah. And centeredness, again, it's like we have a big issue of definition of terms. And so I would say I'm an objectivist overall in terms of how I see the world, which is why I think people enjoy. I think why I get a disproportionate amount of views and things like that on my content is because I try to define terms.

3:04:57And so I think that right now you might have some people that you are thinking about like this. You're a rolling roulette in your marketing and hoping that people who have heard the word centeredness have had a positive experience with that word. and as a result, make that association with you. There's a very small percentage of people who have done that. The vast majority are confused and have no idea. And so we want to market, or in our language, use the lowest common denominator language so that the maximum number of people can comprehend the message and ultimately understand it. And if they understand it and we're clear, we increase the likelihood they comply with our request.

3:05:33They do what we want them to do. And so fundamentally right now, how are you advertising? Meta predominantly. I have on social channels about 400 ,000 followers currently. Oh, that's great. So they come in through that and kind of drop in. Okay. And what do you sell? Yes. Like price point? Price point ranges anywhere between like low-end ticket is$97. It goes all the way up to$2 ,000. Okay. What's the sales process? Currently, the sales process is literally all online. So there's no... So checkout? Just checkout? All checkout. Okay. But you go organic to webinar to checkout? Organic to webinar to checkout.

3:06:13Yeah, and there's some paid ads that run around it. And then in the webinar, you give them all these different options? I give them one option. Okay. I follow them through so they graduate up into the different levels. Oh, so they start at like a 97 and then they work their way out? Yeah. Heard. Do you have any sales? Yeah, we have sales. Yeah, we're doing... No, no, no. Sorry. I used... See? Definition terms. Do you have sales... No, seriously, dude, this is a perfect example. Do you have salespeople who call the people who buy the$97 thing to sell the expensive thing? No, I don't. Okay, so I mean like, well, thing number one is if you just had somebody who called all the$97 people and then sold them a$3 ,000 thing, you would make significantly more.

3:06:55Amazing, okay. Okay. And then I would begin the call erasing almost all the language that you're using and saying what are the things that you're doing in your life that you don't want to do anymore and what are the things that you wish you were doing that you're not? Okay. And then it said like, the point of this call is to increase the likelihood that you do the things that you wanna do and stop doing the things you don't wanna do. And the good news is we have a five step process that we've done this and we have 80 % success rate. Correct. So if that sounds like a bet that you wanna make, we'd love to help you out.

3:07:19How's that sound? Fair, I love it. Right, because I think, I'll bet you a lot of what you're doing is you're using a lot of jargon and a lot of like featuring and no one knows what that means, nor do they really care. Like they just want the tooth pulled out. They don't care what drill you use. They just want the pain to go away. so I would just focus on you're doing stuff you don't want to do you're not doing stuff you do want to do and we will help you bridge that gap okay I'll give you I'll give you one crazy thing and Alex's kind of description around using language is really important because if they a confused mind stalls right and I will tell you personal vulnerability my therapist stopped calling herself a therapist and start calling herself a business coach for entrepreneurs and And literally her business took off.

3:08:04She went from, she tripled her fees in 12 months just by switching what she did. Because people, not that there's a stigma around it. The average kind of bullheaded entrepreneur is like, I don't need a therapist. Why'd you point at me? Me, me, me, me, me, me. The average bullheaded entrepreneur. Bullheaded entrepreneur. Taking shots. So I just want to reemphasize that Alex is right on with the kind of using the right language. Especially if there's a behavior bent to it. Because when you have a behavior brand to it, two things happen. One, it puts some accountability on them to actually change behavior.

3:08:37And it puts some accountability on you to deliver the thing that will help them change behavior. So you get what you promised. Fair. Okay. That makes sense. Yeah. And so once you talk in those terms, then the offer will actually become one. Like for everybody, clarity beats up. Like if no one can even comprehend the offer, like the biggest thing that you can do to increase your conversion rates across funnels, across ads, across emails, is just describing things as you can observe them objectively. So I think about, I translate all my materials through like a court filter. So if you're in the court and you say, so-and-so is frustrated, they would say, objection, your honor, because that's not a fact.

3:09:14That's an opinion. What they would say is that when that person came in the door, they spoke at a higher volume. They could say that her face was visibly red. They could say that she was sweating. They could say that she threw something at somebody. These are all things that are observable that no one can question. When we start talking in terms of the amorphous, it becomes really hard to understand. And so I would use all of the observable in all of my marketing and sales so that people know what they're going to expect far more accurately. It'll feel like a superpower. It converts like crazy.

3:09:42Let me ask you this question. I love that. Can I get a lot more clear? All right. If I were doing a challenge to get people to come through the door faster in like a 60-day transformational window, tell me what you think of this because I framed it off of some of the things that I've been picking up. for me lately? Yeah. $500, bet on yourself. Yep. Win Your Money Back is the first offer inside of the attraction offers inside of Money Models. And the course, by the way, for everybody who's watching, it comes out tomorrow for you guys. It's free. All right, relax. It's free for everybody. So the Win Your Money Back offer, I think, would smoke for your type of business because it's all behavior change related.

3:10:19Exactly. And so what I'm doing is that I have a set of things that you do every single day. You submit that into the community, write it on school, give you 50 % of your money back if you actually get through 85 % of it and then five people would be voted by the community to where I'm going to give$20 ,000 to those five people at the end who the community basically uplifts and then of those five people they can be nominated to become coaches inside the community so I build an entire flywheel does that work? I think there's a little too much there's three things if I were you, I would do the following do the win your money back instead of 50 % make it 100 % Okay.

3:10:57The 100 % money back is a store credit, not cash. Okay. That store credit then rolls into, rollover upsell, into a year with you. Okay. So,$500, great. A year with me is$5 ,000. Great, we're going to take the$500, roll it towards$5 ,000. Fantastic. Love this for us. Okay. Yeah. And then that's front-end to back-end conversion. Now, what are the things that are required for them to, quote, earn their own money back, or win their money back? So thing one I like the the habits and behaviors. That's good That's what gets them results the other half of the things that you want to do and when your money back is get them to promote All right And so that means now depends on the nature of the service and how people feel about this So you'll know this part better than me But I would say at the very minimum in order to get the money back or win the store credit You have to leave me a testimonial Okay, number one uh, number two, uh, you got to make a public post before and after number three you got to turn in your you know like turning your befores and your after stats so you can either make a public i'm giving you different variations of this so a more watered down version of like i don't want to post it it's fine then you got to turn in before and afters and i want them in these formats and i want them on these multiple sites so i want you to do it on trust advisor i want you to do it on google i want you to do it on yelp i want you like i want you to do it in this reddit forum right like these are the four places i want you to post this testimonial and that is required in addition to the things you have to do to get the results so So the things that someone does are activation related and advertising related.

3:12:21Those are the earn your money back components. And everyone's like, wow, that was a little bit more nuanced. That's why I wrote a book about it. So I would do it from that perspective. And by doing it that way, if you want to get super saying on it, which I would recommend, why not? I always included satisfaction guarantees. So it's basically a double guarantee. So it's like not only can you earn your money back. If you, for any reason, feel like you got$499 of value when I charge you$500, at any point, you know six hours or six weeks into this thing you can ask for your money back now for me personally i did i almost never had anyone ask for the money back from a satisfaction perspective because the win your money back frame is so strong that like you know i mean and i only pulled that out if i needed to you know close a deal or something like that right cool you like that what about this yeah i love that what about this twenty thousand dollar giveaway thing no too much i just don't think you need to don't need to yeah you don't need it okay so you're you're trying to combine you're basically trying to combine three different uh attraction mechanisms and again, clarity.

3:13:17Like down the middle. Right down the middle. Fastball. Like if it's a good pitch, they'll swing. Okay. Cool? Love it. Thank you, man. Thank you, dude. Appreciate you. Thanks for donating the books. Absolutely. All right. Rock and roll. Okay. So we're getting close. Okay. So at 3.35, I have this stack of, well, they're somewhere. I have a stack of signed books. The$100 million men will demonstrate what the signed books look like. There they are. Signed copies. copies. So at 3.35, we're going to give 10 signed copies away to, who are we giving them to? Look at these very fancy signed copies. Are we giving them to, who's qualified for this?

3:13:59Yes, that's right. We don't speak. The$100 million men do not speak like the green man group. All right. While he gets that, thank you guys. I appreciate it. I know. Jay Steele, I'll drop the behavior book someday. Right now, I've got to finish. We've got to finish this launch before this timer goes out. So by the way, those of you guys who are coming on, this is the end of the donation book drive. So we're trying to get as many books in the hands of entrepreneurs as we possibly can. The ultimate goal long-term for me is 32.5 million books. That means one book for every entrepreneur in America.

3:14:28I will eventually get to the world, but for right now, I'm focused on America. And so to incentivize business owners, help me out. I created all these assets over the last two years that I'll give anyone for free if you donate 200 books. Okay? And there's a bunch of free stuff for people who did nothing. So if you're broke, I got you. Don't worry. And that's why I set it up. Okay. So, um, between now and when we hit 3.35 copies, anyone who donates 200 books, um, will randomly select 10 of you to receive one of these, uh, one of these, one of these guys. So, uh, as of right now, um, between now and when we hit 3.35, uh, which is coming up pretty soon, anyone who like who donates 200 will randomly select, um, one of you guys to get one of the signed copies.

3:15:05All right. So that's the, that's what's happening now um let's let's let's get jiggy with it okay um okay miles lua you just thank you you just uh you just you just got um 200 bucks thank you okay rock and roll so um uh thank you for that appreciate it pre-orders arriving already so good job guys oh dope exciting

3:15:38I don't know what that means. I don't know. The person you are trying to... All right. All right. We're going to try another one. I'm going to get canceled before the live stream even ends. No, no. It will be okay. Okay. Yeah. I have representative. I'm good. I have coverage. I have coverage here. I'm good. All right. Nick Ostash. Okay. So some of the 200s are coming in right now. Our team. Are you guys gonna send me names so I can read off who just got signed copies? Ed, give me a name. Otherwise I'm calling Nick. Understanding behavior. Oh, that was thematic. All right, I'm calling Nick. I'm calling Nick.

3:16:24I'm calling Nick. Okay. And then as we, oh wow, we're really about to hit the 200 though. So it's literally right now. Hey, what's up Alex? Nick, what's up dude? Not too much, how you doing? All right, we got five minutes. Top line, bottom line. What's the problem? What's your top line? Cool. Yeah, we're a pretty new company. Right now, we're making about 80K a month, and we're profiting about 75 % of that. Okay. This is great. Okay. For sure, for sure. Yeah, so we run a company. I do test preparation for people that are taking the BCBA exam to become board-certified behavior analysts. Okay, got it.

3:17:06Which is pretty cool because I can tell that you're a Skenarian at heart and all that. Desperate. But yeah, so we, like our biggest bottleneck right now is just getting more attention. Like our products are really good and all of our students love them. Our reviews are crazy. It's just kind of getting more volume. But one of our problems with the business is that since with our company, our students don't really need us once they pass the exam. So they pass and then they just don't need us at all. That's fine. So it's really difficult to get continuity because we just constantly have to get new customers.

3:17:48So one thing that we've been working on is getting more university collaborations. so we just collaborated with our first university and they're going to be implementing all of our materials for all of their students um for like across their whole program um and i feel like that's the best way to get continuity so um but i just wanted to kind of like pick your brain about what kind of strategy should i be using to for cold outreach to new university programs okay So pause real quick. So currently, what percentage of your revenue is coming from university programs that you're doing collaborations with?

3:18:29And what percentage is coming from just people coming to you and just saying, hey, I want to help with Test Track? Right now, it's like 95 % just from people. And we have this one collaboration. And all their students are about to roll in and purchase all our products in the next couple weeks. So we haven't touched that revenue yet, really. And this is just to get, once they take the test, they get into a university program. Is that correct? no opposite so our students they've already graduated from their programs they all have master's degrees and then they need their certification to practice professionally well that's great because it's closest to money that's wonderful yeah yeah absolutely so like most of our students they pretty much like triple their income once they pass their exam okay so let's okay okay so you're sitting on a goldmine so that's the good news yeah all right so i want to talk through a couple things i'm just gonna do a couple tactics so i gotta i gotta keep going.

3:19:21But here's, here's like, we're going to rapid fire. So number one, every single person who walks in the door, you have to get their current earnings. You have to, you get it. You have to get bank statements. Okay. Six months after they graduate and you have to put some sort of stick there. Maybe it's a rebate, maybe like ideally a rebate, or maybe they can only, they can only become a member of this thing that you charge$10 ,000 a year, but they get it for free. If they X, Y, Z, which is they send you their earnings after they get the job using your thing. okay so the reason that it's important is that then because you have such a clear like we get people from point a to point b and it is related to the income that they're going to be able to earn in a field like if you look at harvard harvard can publish the average or median income of a harvard graduate they can say that and so people will think okay well if i go to harvard my median income post-graduation is 125 000 a year okay great i don't know what the number is I have no idea what it is, but they can publish that.

3:20:16And so to the same degree, you're then able to frame your value against what that triple is in very real terms. And that way you can put disclosures and say, hey, these are the medians that we have 10 % of people who don't get jobs. And literally just publish the stats if you are as good as you say you are. And you'll be able to price so much higher by doing that. That's number one. And the way to do that is to add the alumni job board as the thing. So you get the full-time, lifetime access to the alumni job board, and that's what people get. And you can show that to them on the front end. Okay, yeah, I like that idea for sure.

3:20:53Okay, that's thing one. Thing two is I would, I think the idea of going after the universities is not a bad idea. You need to think about your business as one level chunked up, which is that the customers are the universities, not the kids, right? And so the goal is to basically create a monopoly here where you can map the entire network of these universities. They make full-time partnerships with you. And ideally, you can lock them into longer-term agreements. And I would always ask the magic question, which is what would it take? What would it take for us to make this inclusive? What would it take for us to lock in for five years?

3:21:29And once you do that, then you can become an entrenched monopoly, but you're too small for anti-monopoly rules to affect you. And then you can become a money-printing business. Again, not a guarantee. The results will vary. Yeah. yeah absolutely yeah what Alex is saying is also like you know you want the test prep is just a part of the journey right so you your next part of the journey is the career placement part of the journey so you just have to figure out hey what is the career placement component that I can add to this so the test prep is paid by the student the career placement is paid by the university so you've montaged both sides of the book kind of both sides of the supply demand curve yeah so people with this certification are super high demand like they find jobs instantly like they apply and like they're just handed jobs well if you want to make more money right then that's a scarce resource and so then you can include in a placement at an even higher higher earnings like basically you can pre-negotiate for them because if they're all getting lots of jobs and it's scarce which means you can then create overrides which means you can hoard the scarce resource and then you make money on the customer and on the placement.

3:22:36Okay. I see. I don't think you do that now to be clear because you're too small. So I want to be clear. But that's like, if we're looking at like, what's the big vision, that's where we want to go right now though. Sure. Document the earnings. Number one. Number two, once you have those documented earnings, you go to the, I would, I would do that first because then you can use that in your sales pitch to each of the universities because that makes sense for them because they're going to want to advertise those numbers too, if they can, and they will be able to, if they fully and exclusively collaborate with you.

3:23:03Yeah, totally. Okay. One more thing is, yeah. I got to, I got to go to the next one though, but I, does that help at least to get you started? Yeah, for sure. Very helpful. Happy birthday, man. No, I appreciate you. And the, if you want to get rubbed shoulders with the universities, the best things that I've found have been going to the trade shows and conferences because that's where the buyers are. That's where you'll be able to, like, it's the easiest way to get your foot in the door. Awesome. Good to know. Thanks so much. Appreciate you. You bet. I'll give you one more 201 strategy, which is hire someone who already did sales into academia.

3:23:40This is a little bit higher end. That person already has the black book. They already have all the key holders for every one of these universities. And you're basically buying their black book by hiring them. So then when they call, they pick up the phone. That's what you're paying for. All right? All right, awesome. Appreciate you. Appreciate it. All right, thanks for donating books, Ben. Yeah, thanks again, Ben. All right. We hit it. Oh, we have three, four. Okay, so do we have... They're working on it. They're working on the names? Okay, fine. So we hit the 3.35. So 10 of you guys who donated 200 books, they're pulling the names right now because it happened really quick.

3:24:17And they're going to send them to me. And then you guys are going to get signed copies. and I'm going to name the names in a minute, okay? Okay, so, okay, I saw somebody request dental. So I have dental right here. That's literally somebody just opted in, not opted in, bought donate books who was dental. Okay, so we got Red Lion Dental, David Black. Hopefully he picks up, I'll find out.

3:24:44Yeah, I'm calling people who donate. Yo, what's up, man? Hey. let's talk about redline dental we have five minutes so top line revenue for last year was 1.6 million yes we are we are on track to do 2.1 2.2 this year the increase comes from we've been revving up the invisalign side of our practice two years ago we were doing eight cases a year in the last 12 months we've done 143 well I have two questions for your ones a little bit more just straightforward tactical um which is uh i now need to hire a full-time appointment center do you have any recommendations on compensation strategy dude it's going to be such a short-lived thing man like you're going to do this for like 12 months and then i mean tops because sdr like uh ai ai appointment setting especially for medical for something that like is well understood is going to happen like it's it's it's in swing right now we're already using an AI for our recycling so yeah so you need to get an SDR so you're saying recommendations for how to find an SDR no I have well I mean if you have any quick ones that would be great but the talking on phone sorry my four-year-old young hungry 20-year-olds tends to work great okay so we've been doing our price for invisalign is 4500 yeah I've been doing as lead which I want to get rid of or as a offer was$500 off I hit it just had through PowerPoint like you were saying a few minutes ago so I was trying to come up with a magnet the one I had come up with was coming for your free invisalign consultation and we will make you custom waiting trays at no charge you get that whether or not you move forward with Invisalign.

3:26:36You just qualify that appropriately. You like that better than the$500 discount? Yeah, because my cost to produce trades is about$30. But does the person who come in for a free teeth whitening thing, do they want Invisalign? So that's the pre-qualifying one. Okay. Okay. Right. And you're running that offer now? No, I was about to start that and then I got access to your AI. and what it recommended was do a basically a$49 like get get pay free a discount of$49 for when you go to normal cost$400 yeah when you come in for your invis line yeah okay so you have people who have to dance in the game yeah help cover up cover cover up from close and then we have a subscription model to keep people in maintenance for waiting that's yeah nice job AI Good job.

3:27:33Yeah, I'm going to get retired soon. Do that. No, that's a good suggestion. So I'll give you a little detail. Maybe the AI didn't say this. So I still have failure.

3:27:50When you get the – you want to get the card over the phone if you can, obviously to bill. And then that way you can also charge a no-show if they don't show up. But if you're billing them up front over the phone for the discount thing, that'll, that'll, you know, dramatically decrease the show rate. And then when they come in, I would probably position this, I would use probably half of a menu upsell in terms of the mechanics. So obviously, we own a T2 Whiting chain, so I'm super familiar with like the whitening process and sales process around this. And like the sales process that we designed more than doubled LTV.

3:28:24And so basically what we would want to do, do you have any computer imaging software? Yes. Okay. So I'm guessing you show them like this is what your smile could look like. Yeah. So we have an interior so we can do both. Here is the left dress and viseline. Here is the viseline and veneer. Okay. Yeah. So do you do veneers too? Yeah. Yup, dude. I don't know. I don't know. I don't know. Printed. Yeah. Yeah. So yeah, you know where we're going to go here. Take a picture of them. Say what, you know, here's you when you're pretty. Here's where you now. You know, which of these three looks would you prefer?

3:28:55All of them are buying. And you say, great. I recommend this, do you want to use the card you have on file, which they give you because you already have it. So it makes the whole sales process super buttery. I mean, yeah. Yeah, well, I mean, yeah, I kind of nailed it. But yeah, that worked real good. Awesome, okay. That's it. Good job so much. Now you bet, congratulations, Ben. And thank you so much for donating books, dude. I appreciate it. absolutely have a new one all right you too for anyone who's curious what he was referencing the ai um i trained on 226 uh one-on-one consultations which people paid 135 000 for um i'll show you this real quick maybe the camera can zoom in um so this is what actually went on so i would let me see yeah there you go i've blacked out um the faces here uh but like i would have a consultation and then we would go in and so we have all the stats about the business and so all of this uh is all like all the notes that i would that that we would take on the company and we would just basically pour through all the things that we need to do about the business and then there's just a lot of papers for each one of these um but anyways we would do that analysis and then to come in and then i would be like hey these are the things you need to do this is the promo i think you should run, here's some of the data that supports it, it's XYZ.

3:30:22And so all of these companies paid for that from me specifically in person. And so I trained it on that, plus all 12 implementation playbooks, plus all of my books and the notes that are unwritten about my books, kind of like the lost chapters, but more stuff. And all of that is free when you donate 200 books. And you're like, why would we be doing something like this? It's because we're going big. We're trying to put a book in the hand of every entrepreneur in America, and I wanted to incentivize business owners to help. All right, and so that's that. What? Yes? Speaking of, we have some names to pull.

3:30:52Okay, we've got names to pull for those of you who donated 200 books during that little window that I had filled up. Okay. Drum roll, please. Okay, so the first three random signed book winners for people who bought the 200 book bundle, we have Tom Urbanski from London, United Kingdom. Can we sign his book? I just signed it earlier. Oh, you signed it okay. But it's signed, okay? Oh, no, I'll put his name on it. I'll put his name on it. I'll sign it like this. Yeah, Tom. Tom. You rock.

3:31:28Here's a blue. You were probably signing it. Oh, I think it's cool with black. Okay. Yeah. All right, Tom. That's for you, dude. Thank you. Amazing. All right, what's our next one? Now we have Robert Wierda from Tampa, Florida. Robert. Robert. Robert, thank you, dude. Thank you for donating books. if you're online drop a drop a chat guys anybody who donates 200 books you get a chance at a signed book from alex thank you dude all right what's our next benchmark 3.4 did we i know we're not there yet okay okay all right next we have cody limbaugh how do you spell cody cody cody okay p-o-d-y from enterprise Oregon keep giving

3:32:25thanks dude thank you guys for supporting and doing the 200 book bundle we're gonna take calls after this all right okay next name oh that was it oh three all right okay then we'll do another three okay that's it you gotta get me all you got me all hot and hot and bothered okay you have my phone all right fantastic okay okay okay where we got there okay so that was David with red line dental was that fun okay next one is a different David. 10x Re-Up. I don't know what that is. We'll find out. Re-Up. I wonder what it means. I don't know. I may have to pee at some point. This is David. David, Re-Up.

3:33:17It's Alex Hermozzi and Leila Hermozzi on Hermozzi Hotline. We've got five minutes. Thank you for donating books. How can we help? What up? What up? Is my life behind right now? What? Oh, no. The live is behind, so it's always like five or ten seconds behind. You're good. Okay, cool. Yeah, so real quick, I'm in the business of getting other people and other business owners money for their business, so like loan stacking through banks and alternative lenders. Okay. And very specific question for you with this one. With ACQ Ventures, I'm working with a tech startup right now out of Silicon Valley and their founders, and they're in the process of talking to some people for getting 30 million and I was going to ask you like what the process looks like or how you guys do it at ACQ Ventures if you do stuff like that but they're building can't say too much because I signed an entity but they're building something that I think that you guys might be aligned on well we we have to know we have to do diligence on the business so we have scorecards essentially for business business scorecards founder scorecards looking at essentially like rating them and then we weigh out each one of those things so you know there's 15 to 20 points for the founder 15 to 20 points for the business 15 20 points for market economy and then each one of those points is weighted differently based on how important it is and we just honestly use a formula So we run the businesses through there and it helps us make objective decisions.

3:34:51But we have to get the diligence in order to know if we would invest in the company. For sure. Yeah, I was going to be in, I was actually going to be in like Laguna on Wednesday and I'll be out in Cali for like the next two weeks. I'll be going to San Fran and L.A. during that time. So I'm in the school, so it'd be dope to see what that process would look like so I can connect you with the founder because they've already built it. It's already like ready to go. The way to do it is just have them go through ACQ Ventures because we have a whole process for that. We have a whole team that looks at deals every day.

3:35:23If you make a post in the group, we'll get Zach Choi, our general partner, to link up. Yeah. Okay, sweet. And then, okay, so a different question that's specific to my business is for getting people funding. I was wondering what you guys would think is the first thing that I should hire out on because basically I'm on the revenue rollercoaster of like, I'll have like one decently big month. Like last month I had my biggest was like 55K and like 50K of that is like profit. But I'm pretty much one man show right now using some AI systems and I'm going up and then I have to deliver for the clients and that slows me down on the marketing side.

3:36:05So would you guys recommend like hiring somebody for sales first or hiring somebody with skill and training them to help me with like the delivery of the service i know what i would say yeah i already know we're gonna say the same thing yeah i would have like i would have somebody help you out with the delivery because right now dude like you're you're you need a you need a general revenue right like million yeah go ahead yeah always delegate revenue last so whatever's closest to revenue you hold on to the longest typically now and to be clear for like somebody who's a software founder if like the software you have needs to go viral in order to succeed, then the thing that is closest to revenue that has the highest leverage is actually improving the product.

3:36:45So again, like there's a little bit of a nuance there. Yeah, business specific. But yeah, for the business that it sounds like you're in right now, it's going to be more promotion-heavy, like you seem to do more deals. And so, yeah, I think the delivery, I would imagine, is very process-oriented. Yes, yeah. It's a lot of like meeting with them. Yeah, checking boxes. Yeah, exactly. Yeah, so that's totally the thing. And I'm guessing it's probably taking up half your time. something like that yeah yeah so for sure that would be the lower leverage thing that i would like that'd be the first thing we hire up okay cool and then my other question was uh going through the course already i was building out my series and i was looking at one of the attraction offers the free premium offer giveaway do you guys uh or have you seen a way for that to work or is it designed to be able to work through like a cold email system where i can and just rip, you know, 2 ,000 emails per day?

3:37:34Giveaways don't work, like, I'll say this, I would not use a giveaway as my attraction offer for using cold outbound as my method. So giveaways works, you know, super well with like one to many communications, whether that's content or that's paid ads, super well. Outbound, it's like, it's, no, I just like, that's not how I would do it. Okay, gotcha. Would there be a certain attraction offer for, or that you would recommend for an offer, like getting business owners funding based off like a cold outbound to rip emails? So, I mean, is there a giveaway? For sure. The question is just like, how much?

3:38:14Because you want to make, oh, wait, wait, sorry, sorry, roll back. You said, is there a giveaway option that I would do through outbound? Is that what you said? No, an attraction offer. Oh, an attraction offer. Yeah, that would fit there, yeah. Let me try to think. I think that I would probably end up doing a decoy offer for that. So it's like they come in for something that's free, but then you explain to them that that's only one part of a much bigger system and they really want this other thing. And they'll happily buy that other thing that's significantly more expensive rather than the free thing, which obviously you can offer that should they choose not to get it.

3:38:53but you you give them the upside for sure I appreciate that that pretty much answers all my questions but it's funny that I'll just put this on record she convinced me to drop out of college years ago thankfully it worked out and I'm homeless now how did I convince you to drop out of college? your video on YouTube basically like weighing the pros and cons. And I was like, wow, this has never been more obvious what I need to do. Well, there you go. Well, I'm glad it's working out. That's freaking cool. Well, Layla convinced me to drop out of singleness. So I hear you. Thanks, man. I appreciate you.

3:39:35Thanks so much for donating. Yeah, thanks, guys. Appreciate it. All right. Okay. Let's do two more. We have two more winners for signed books. Okay, let's do it. And then you can go run a movie. Yeah, and then run a movie. Run a movie. All right. let's do so quit my signing so we have chase sugarman all right mr sugar man San Diego California mr. sugarman you donated 200 books I only remember sugar was the first name chase chase yep and guys this is for anyone who donates 200 books you get a chance at a signed copy all right keep being awesome

3:40:22boom all right that's thing number one okay now we've got mark magalanice from mardson park m-a-r-c or k last thing i want to spell wrong mark okay mark from nsw australia all right we're shipping this out to you mark 200 books going to australia oh sorry all right oh we have one more one more hot one the special one oh yeah uh yes shem shem

3:41:05all right and she actually has a fucking mood follow-up plan license plate so i'm gonna sign Okay. All right. And then she'll know this part is for me. And then I'm going to do this and then you call the next person. Maybe I'll do whatever, you know, I feel good. Okay. So call this one. Okay. Okay. Have fun. Should I call somebody or should I answer, should I answer questions about alex that are uncomfortable should i spill some tea all right

3:41:49hello hi this is leila hormozy oh my gosh how are you good how are you i'm really good i'm really but sorry gym life i've got a gym music going on in the background oh my gosh you're fine i love your license plate uh thank you very much thank you they took it off me they thought it stood for something else so the government took it off me which is not fun seriously they took it off what the heck that's so rude okay yeah not cool i know not cool um well you're on her mosey hotline and alex went to the bathroom and so they gave me your number to call and i was like she's got the license plate we got to do it well look I think that you are the perfect person to ask this question for me um because yeah I'm really stuck lately like I'm really stuck um yeah I have been training up a uh operator um to come in and replace me to have more time um we really want to scale and go to three locations and um like and to four locations and scale to sort of eight figures and the operator that I have poured so much into in the last few years has unfortunately burnt out.

3:43:00I keep taking these technicians that come from like PC to PC manager through to like an operational role and I feel like I'm needing someone that has more influence versus the technical guys that are coming in and you know there's a little bit analytical stuff and they're really good at the technician side of things but it's almost like that matrix style org structure that's just not working for me um i've got someone that potentially is quite influential like me that comes from like a sales background yeah i'd like a bit of retail management experience would you recommend that that is someone that potentially could help me run like it's you know it's a five million dollar pt business we have 1600 pt clients 35 staff and it's like high volume but also high care and high service um pt model and um it's there's a lot of systems that we've built out um a lot of you know data tracking we know our numbers we know our stuff and and we want to scale but it's like who who's the person that i should bring through yeah so in general if you are looking at hiring somebody to be an operator i look at it as an operator is really a people operator right now if you can operate and you can influence people you probably also can deal with process and systems and all those things but i look at it it's a much higher leverage skill to have somebody who has the ability to essentially influence people lead people manage people and drive sales than it is to have somebody who understands like the technicalities the project management skills the organization so i almost look at it as like that person you want to have at the top and then they can contract people they can hire people they can like if they're not the best at the analytical technical side they can get people who are you know like for me for example like my skill has never been like oh i'm the best with systems and project management tools and or like it would actually be probably a bad use of my time to do that because i'm better at you know leading people driving revenue doing those things and so i think you want to think about what's your skill set right yeah influence it's 100 % influence right and so my people are foreign my people conviction it's um i'm selling even from the interview process of when i'm in hr and i'm even just selling it at pt well i use the interview process to almost like sell our culture ourselves yes our team the point of difference that we have in the marketplace like i use my conviction to influence my team correct so you want somebody who approximates your skills if you bring in somebody who has none of your skills then what are they taking off your plate they are solving a new problem but they're not solving the fact that you still have this on your plate and so a lot of people when they bring in an operator this is the number one thing i see is they think oh i need somebody who's like the opposite of me they need to be like very detail-oriented and all these things.

3:45:44I'm like, listen, I'm an operator and I'm not that person. I'm not hyper-technical. I'm not driving the project deadlines. I'm not doing, like, I'm a people leader through and through. And I also have an enormous sales background. And so I think that you have to, it's like the weirdest frame trip, but it's like, find somebody who's more like you and they will take more things off your plate and they'll probably be able to do a better job of leaving the team. And so I think, honestly, it sounds like you had the wrong avatar in the past. And I think that you've taken the step in the right direction.

3:46:10So like, I love your plan. I actually wouldn't change anything. I think that you should give this person a shot. Oh, this is absolutely huge. Honestly, this is the biggest constraint that's stopping us from scaling and duplicating our model because all of our systems and fulfillment and everything like that is locked down. Even hiring our technicians is locked down. But leadership is a huge dysfunction. And we're great operators ourselves and great leaders ourselves. And it's just like cloning ourselves as leaders is really holding us back from going to eight figures. Yeah. And at some point you have to, you have to make a choice, which is like, and it's more of a decision, which is like, I can no longer scale this business off my leadership alone.

3:46:49I can no longer scale this business off my influence alone. Like I have to bring in other people. And sometimes when you're thinking about scaling the business, like we talk about the constraint of the business all the time, but sometimes it's your, you are the constraint. If you are, if you have a lot on your plate, if you are gassing it, if you are working 12 hours a day and you bring in people that are not coming in to relieve you, you've just added more. to your plate because you have to manage them manage their output manage their kpis but you haven't relieved yourself of anything and so i think sometimes the best thing you can do is ask yourself what's constraining me versus the business and i think once you get to that point where you're you know creeping on eight figures that's probably the best question to ask 100 and like the hardest part as well is trying to find people that have the grit and resilience like i think sales sales sales builds that for you like yeah it's gritty where if you're getting someone from you know a technical background they probably don't have the same grit um to deal with all the adaptability and all the constraints that operations has um they're probably not even even just in their mindset and their adaptability alone probably not going to be able to handle the volume of operations yeah so here's what i tell you this is i tell people i want somebody kind but tough and i want somebody organized with sales skills that's it those are the two things kind but tough organize the sales skills i'm literally i'm not a business i love it i think you're on the right track i i would make the hire um you are epic sometimes i just needed to hear it from someone that i really trust and and i know that has the answer so thanks layla and i'm on your content with uh sharon at the moment uh the operator is just phenomenal so thank you so much oh thank you okay well hey have a great rest of your night or morning I'm not sure.

3:48:31Okay. I'll talk to you soon. Good morning. Thanks, Laila. Bye. Thanks. Bye. All right. So I was told by the$100 ,000 men that we're doing, as soon as, yeah, I'll say when. I'll say when. I'll say when. We're good. We're good. Let's do the next, next cell phone. You want to do one early? Okay. Okay. Because we're going to do. Okay. Telephone. Okay. All right.

3:49:05the next 10, the next 10 people who donate 200. Oh, there you go. You got it. Next 10 who over 3.35, uh, get a signed copy. So right now you donate 200 copies. We will sign a copy. I'll put your name on it. Um, it's the next 10. Okay. Um, I think we might, that might've been the next I think we're close. No, I think we got two left. That's, I think that was seven people. There's, and I think there's one left. Okay. Um, as soon as we get the names, we will be, um, we will be signing, signing copies for you guys. You guys rock. Thank you guys so much. And thank you on behalf of the entrepreneurs, by the way.

3:49:47Um, okay, let's pull up. So we did, We did, we did Kim. Okay. Who else do we have here? Let's rock and roll. We have, we do Angelo. No, we didn't do that one. I don't know. I haven't been up here. Yeah, I have. Okay. So serious. All right. So this is a slightly smaller business. So this would be a good one for anybody who's a little smaller. Salty. Don't be fucking calm down. Oh, that's why it's smaller business. The phone doesn't work. Denied. All right, I'm giving him a more shot. He's like, I can't get leads. The phone doesn't work though, bro. I'm calling you, man. The phone don't ring. Did not mean to do that to you.

3:50:28Dude, you just hung up. It wasn't a power move, I swear. Dude, were you flexing on me, bro? Happy birthday, man. Oh, well, my happy birthday gift to you. So thank you so much for donating books, man. Let's do this. Okay, Topline's 20K a month? Yeah, yeah. Okay, 20K a month, 4K of bottom line, right? Yep. Okay, got it. So what are you selling right now? We're selling client acquisition services for financial advisors, so I'm doing a bunch of stuff. I'm doing paid meta ads for most of the deliverables and then I'm starting to notice that we're booking a lot of appointments for advisors, but they're not closing them.

3:51:11So I'm starting to build in AI sales and support them with sales coaching calls to help them convert. Okay. I drank a shot of energy while you said, who is the person that you're doing the client acquisition for? Financial advisors. Financial advisors. Okay. Got it. Okay. What's the price point? So I'm charging 5K upfront and then between 2K a month and 5K a month. I'm trying to figure out some sort of upside. Yeah. How are you getting them right now? How are you getting them right now? I've done the interview method, so I emailed a bunch of people, did some insights, did that first. We got one from Cold Call, and then I've had a couple of verbal yeses through paid Facebook ads, but they haven't actually closed.

3:52:06Okay. How long have you been doing this? I've really started pushing this since October. Okay. So, like less than a year. Yeah. You're figuring out your first real channel. So I'll tell you right now, for just about anyone who's doing less than a million dollars a year, it's almost always dramatic underestimation of the volume required. Okay. So right now you said you got one from cold calls, you got a couple from interview method, right? Yeah, yeah. And then I've been moving to paid ads and the lease low is coming in, but the quality of the leads have been fluctuating. So I'll have a couple of good calls and then a couple of terrible and I'm just trying to figure out.

3:52:42Well, dude, you're just measuring on too small of a time horizon. I'm just like, it's normal. You got good leads, you got bad leads. It's just part of it. All right. Okay. And so you don't think it's the offer? Like, you don't think, like, one of my, you think that should just ramp up the amount of volume in terms of new prospects? Because I've also done this. What's your close rate? What's your close rate? 10%. Say it again? 10%. Oh, 10 % is your close rate right now. Yeah. Now, so the 10 % though, because I want to get good numbers here, that would mean that 10 out of 10 people that you made the offer to were qualified or this 10 people you talked to?

3:53:22So, okay, of qualified leads that you made an offer to, you closed one. Yeah. Okay. Now, I don't know how good your sales skills are because sometimes like if you don't know how to, you know, if you're just getting used to sales, like that could be a thing. It might not necessarily be the offer as much. But what's the incentive for someone to sign up right now?

3:53:44What's the incentive for them to sign up? Well, I would just drive them new traffic and they don't have to worry about booking appointments. I just put appointments on their calendar. Heard. Do you have a VSL in your sales process right now? Yeah, but I don't think it's very good. My background is in sales, not in marketing. Heard. So I leaned on that heavily, but yeah. This is just a different product that I've been selling. It's a lower ticket, a high ticket. So I'm going to tell you something that I told one of my sales directors years ago, which is that at this point right now, especially if you came from a background of sales, I want you to be thinking about how do I make sales easier rather than how do I get better at sales?

3:54:23So I think you have the right frame. Just big picture, okay?

3:54:31So basically, how many success stories do you have? I have shots three, but yeah, three. Okay. They're not like amazing though. Yeah. They're okay. So I'm going to tell you something that you probably don't want to hear, but like, this is what I would do if I were you. Hmm? What are you going to say? I said do it. Fine. Okay. Layla probably doesn't want to say. I would probably see if I could work for people with a free trial plus penalty model, which is actually a different one that's a money model that's inside of money models book and system. So when you go watch that video training on it, everyone who's watching this, by the way, it's free.

3:55:09Chill out. That's free for anybody. You don't have to buy a book.

3:55:14But the way it works is this, is that you have someone put a card down and they still have to do all these behaviors. And if they don't do the behaviors, you build them. Yeah. And the reason for that is like listen, I will do this work for you and I will do it for free because I need testimonials because that offer will get you way more sales, obviously. Because you've probably talked to 30 qualified leads, right? Something like that. Yeah, I've talked to more than that. Okay, so dude, I would rather you just fill up your calendar, get way better at it, and get way more yeses, and then basically artificially, not artificially, realistically, jam your supply-demand so that you can barely even work, like can't even do anything else because you've got so much business that you're working with.

3:55:57and then it'll shift your perspective and your behavior because you're going to be like, dude, I have so many people who want to work with me right now and then you'll learn more, you'll have way more testimonials and then you'll have the pricing power that you need because I mean, it's realistic and it makes sense that it's taking you so many to close because you have no proof. Yeah. Right, you're leaning purely on sales. It's purely on sales. You just need the other stuff. Well, what are your thoughts on, so like, I guess this is a future problem but then my other thought around this was, Well, if they can't convert the leads, then I'm going to bring on all this traffic for them to try to convert the leads, but they still can't convert it.

3:56:35So then I'm out of cash flow and I can't solve it. No, no, you're not. No, they're going to pay for the ads. They're going to pay for the ads. You're not, you're not. Like, you're going to do the service for free. Right, right. But they're going to pay for the ads. They still don't convert the leads, right? Then I got to help them convert those leads. This is a feature, not a bug. um so when you're an agency and you deal with small business owners which is what you're dealing with it's going to pretty much just suck um and i'll tell you that there's really only like let me just fast forward to what's going to happen can i just tell you your future for a second so what's going to happen is you are going to figure out how to start acquiring customers you're good like so in steps you're going to follow this advice you're then going to get enough proof with enough proof you're going to make a compelling vsl with a compelling vsl you're going to start being able to sell at higher prices.

3:57:23You're going to start increasing your prices. Because you know how to acquire customers, you're going to start selling more customers. And you're going to get excited because a disproportionate of that is going to drop straight to the bottom line. But when that starts happening, you're also going to start noticing that people are going to start falling off the back end. And then all of a sudden, your revenue is going to go up. But CACs are going to start going up too over time. And then your margins are going to compress. And then you're going to be at between$1 and$3 million a year. And you're going to be like, man, this sucks.

3:57:43I have this big churn factory. And then you'll call back and be like, hey, you know, I'm doing 1.8 million top line. I did$250 ,000 bottom line. I'm really not not sure what to do with my agency right now because these guys, you know, they kind of suck at business and I have to try to explain to them. I have to hold their hands and do all this work for them. And so I'm just trying to figure out a better way to run this business. And so then at that point, I would then say, okay, well, the issue is this, is that you have a poor avatar that sucks at business. And so either option one is that you build this thing from the front end so that it's as low cost as humanly possible.

3:58:13So they don't churn ever. And you can do something in such a way that like at$300,$400 a month, you still run insane margins on it because your stick rate's really good and it costs you almost nothing to run. That's option one. That's the low cost, high volume model. And it works fine, but you have to build the business day one with that low cost volume model so that you're dealing with these small business owners. You have to price at their worst month, not their best month. Now, the second scenario is that you have to go after higher, you have to go after whales, right? You have to go up market.

3:58:42And those guys don't need your help closing because they know how to close and they just need deals. They just need, you know, they need lead flow. Either of those are, yeah, either of those are the end state of where you're going to go. But it often happens that you have to go through all those stages that I just outlined because you don't have the confidence yet. You don't have the proof yet to go sell those whales. And so it's like, you kind of need to get yourself to a business owner, you know, who's making a million, two million, whatever a year in revenue so that they can be like, wow, this sucks.

3:59:13I should build this differently. So those are the two end states. It's either you're going to build this day one with that like super AI enabled, super automation enabled so that you can do this at low cost or you're going to say I got to go whale hunting. But the thing is, it's very hard to sell whales with no proof. But those are the two end states of actually what makes this business work. Okay. So is there a world where I don't even go after this market and I change the market? No, so everything, you're good. Everything I just described is true of anyone who does client acquisition for any business.

3:59:46Okay. It's like what happens is if you're good at marketing and sales, you very quickly deal with people who just aren't, they're only good at one element of it, right? They're not good at some component, which is why they're hiring you, but it's kind of this catch 22. So you end up eating up more and more of their business or you have to go up market. And so you either have to make it so cheap that you don't care if they churn because there's so many of them and it costs you nothing. or you actually price it in a way that you can have a charger premium, but you can only do that with people who can afford it, which is upmarket.

4:00:15So if you look at the biggest agencies in the world, which is basically what you are, you either got to go like, you know, super cheap, super high volume or premium.