From Day 3 Of My $105M Money Models Book Launch | Ep 954

24:31That's what you just said, right? Yes. Okay. Yes, yes. So you just want the people, like, not from a humanitarian perspective, so I'm just purely talking business here. The point for you is that you want to get as many Plan B people as possible, right? Exactly. Okay. Exactly. So you're trying to get as many Plan B, and right now you're doing Facebook ads and you're getting some people that are not Plan B, right? Yeah. Okay. So before we even, like, fix that, I want to understand, is it really a problem or is this a feature? So let me explain. Right now, how much is it costing you to get one of these people versus what you make on them?

25:05So it's costing roughly on average about$15 per acquisition of a lead. All right. And so it is a range based on the wound size. So if it's a one by one centimeter, it's just less of a payout than compared to if you have a big gigantic wound that's 100 centimeters. So if we can refine the wound size and then the qualification, because the only payoff that we receive is Medicare Part B. That's why there's so many different insurances. We can't take any of those. I'm getting, I totally hear where you're coming from. It costs you 15 bucks a lead. Like we just, the way you have to grow this is like, you're making it sound special snowflakey to you.

25:42And I think that's why it's making it confusing. But fundamentally, it's just like, it cost me 15 bucks a lead. one out of 10 leads is going to be a qualified person who's plan B and has a big enough wound, right? Gotcha. No, it was like, we just have to know this math. That's it. It cost me$15 a lead. I convert one out of 10 leads. So it costs me$150 to a car customer. Each customer is worth this on average, even though there's variability. It costs me, this is what I make on average. So do you know those three? Like, I know you know the lead cost, but what about the other two numbers? What percentage of leads do you close and what the average deal size is?

26:14Yeah, it's pretty low. I mean, we've had five treatments out of 1 ,000 leads. That sounds bad. Okay. Okay, how are you making sure? Yeah, yeah. How are you? So the funnel right now is that they're just opting into a PDF, right? Yeah, yeah. Okay. And then a consultation call afterwards. So it automatically takes them to a consultation call, or in the PDF it says, if you have these things, then do a consultation call? So essentially, once they provide their email, their name, and phone number, they receive the PDF. And then the next kind of landing page is book a consultation call from home care.

26:50Okay, so you've got name. So I'm writing this on the board, so maybe if you're watching the live stream, you can see it. All right, so you've got your opt-in thing for the PDF. Okay, cool. And then they put name, phone, and then email, right? Something like that? Yep, yep. Email, whatever. And then if their stuff is qualified or everyone goes and sees the scheduler? Yeah, everyone sees the scheduler. And are you taking all these calls with all this trash? Yeah. Yeah, that's horrible. Me and one other rep. Yeah, yeah. Okay. And then you're just running lead ads, what, nationally? No, specific to the areas where we have providers that can provide the service.

27:30Okay, got it. It's a city, state, location. Heard. Okay. Okay, so big picture here. I think I'm going to bet that there's an ad copy issue. Like how many people know that they have plan B or not? The thing is, they're also not educated to know since they can, unless they're 65 and older, they automatically have a Medicare Part B. Why don't you just advertise to everyone who's over 65 and older? We do. We do do 65 and older, but they still have other insurances that can kind of opt into. But if they all have plan B if they're over 65, right? So they do qualify to use your stuff. Yeah. So once they hit 65, they also have the option to choose other more affordable Medicare medical insurance plans.

28:20So that's where the challenge. So 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 SST5, they do have the option to sell it more than affordable options. I hear you. I hear you. I hear you. So let me, I want to help because I also want, I got to make through the next, the 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?

29:00Now, 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 get 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 and then you have your yeah and then the the the application part I would add in how big is the wound and then that way you can score the leads and if you and like even with that level of lead flow maybe that be that's enough filtering if it's not enough filtering and still getting trash I would then start scoring them and only showing the scheduler to the people who have wound sizes above X.

29:54Gotcha. All right? That's the first thing that I would do and think through it. Okay. All right. Appreciate you, dude. Congrats on the business. I appreciate you. No, you bet. I mean, dude, you're doing 2 million profit, 5 million top line. Like, you're, 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 got to add friction. Gotcha. No, I think I appreciate that. You bet. Awesome, man. Talk shit. Thanks for donating books. All right, bye. Thank you. Of course, absolutely.

30:26All 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'll say it again later. Okay, so Zach Rinders. 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 apiece. 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. Thanks for taking my call.

31:04You bet, dude. The timer has begun. Okay, so talk to me. 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. We own a local architecture firm in Minnesota. Got it. We niche down unintentionally, but it's worked to our favor. Fine. 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. So that's where we came in.

31:43Uh-huh. 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, like I promise you. Okay, so you're in a space that it's super price-driven, right? Because you've got it's 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, right?

32:18And 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 you, quote, sell to an investor or you sell to a GC?

32:53So 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. My favorite, right? Yeah, exactly. No, but it's not... It's a process. Okay. So then what stops us from getting only those people or focusing almost exclusively? 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. And part of it is I've tried to expand so that we give one faster speed, like you mentioned.

33:29So we get our plans back to you within a week. Yeah. So that's faster than most everyone. Yeah. 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. Yeah. 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. This is a pure dollars and cents thing.

34:00And 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 a cent sample. They're going to say yes. It's like, cool. So there's a concept called save a dollar today, 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 same 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.

34:30Right? Right. Okay, 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. Right. And these are all the different things that can go wrong, right?

34:59And 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 like subscription, anything like that.

35:34It'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.

36:04And 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 increase, you know, like basically make more money, et cetera, using our software. And so all of a sudden, what happened is instead of having, you know, 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, he only does chiropractors.

36:30He comes in and he pays, you know, 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 he, 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.

37:04And so translating this back to you, you said you've got these referrals that are coming in, right? Yeah, we typically get three to four referrals every week that we'll then 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? Okay. That's how I approach this.

37:42And 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 customers. And so I want to see like, what's my sales guy for those guys to get them to consistently 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 refer me in business to 200, that becomes reoccurring by nature rather than recurring. But still stable. Do you have a suggestion on a referral bonus for those people?

38:15Are 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. That's V1. So an example of that is, hey, a new business owner gets an LLC set up.

38:51We'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, right, 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. That's the second, right?

39:19And 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 go 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, 100%. 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.

39:52Okay. Got it? Yeah, thank you so much. Dude, you bet. I know 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? Is this fun? El Senor chat? El Chattissimo? Yeah, you got extra value, Albert. Super is farmed. 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.

40:27We started together. We're ending together. All right? 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. Buy all three of his books. Awesome. 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 5 million top line? What did I see here? You got a paint, paint, paint, paint, paint.

41:09Okay, 5 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. 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 talking about reoccurring revenue. You talking about LTV to CAC. Once I saw that, I went there to learn Facebook ads with my agenda.

41:42You 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 downside to it is that the gross profit is less. But the advantage of it is that the LTV to CAC is insane. Through the roof. So it's like, what do I do? Because my GP on repaints is 52, but I pay a salesman 7%, and it costs me another 5 % market, and that's 12%. So when you wash it, 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.

42:21But then here's the next thing. So since I did that, I was like, okay, I'm going to go full force. I hired a virtual assistant who just does my takeoffs so I could produce way more – I could bid way more jobs way faster. This whole year, I have three salesmen selling repaints. 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 – like, am I making the right decision here? Because they are way harder to produce is the hard thing. Like, most people get their ass kicked in new construction. They go bankrupt.

42:55The 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. So when you said you were getting 20 to 1, 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? Yes, sir. Yes. And the issue there is just that it's really just that the pay cycle is extended.

43:35So it just costs more cash for, basically, you have to flow 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 as a physical product business. And what they ended up doing is finding a manufacturer that gave them net 90 terms.

44:07So 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, they 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.

44:40Basically, 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.

45:09My 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 20-to-1 machine. When I see a 21 machine, I don't want to mess with anything about it, dude.

45:43And 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'd just say, 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 whenever I was there, I had that epiphany and you guys were passing around the mic and I was raising my hand and I was like, please just tell me. I don't know if this is right. I didn't get to ask. I was like, I'm just fucking going for it. Excuse my language. No, you're good, man. I appreciate you donating to your books and honestly, thank you so much from me and from the entrepreneurs that you donated books to.

46:12Happy birthday. Thank you so much. I really appreciate you. You bet. Thanks, Rhett. All right, bye. Okay, now we're going. Is that cool? That's exciting, right? That's kind of fun. Yeah, this, like, honestly, guys, I could literally do this all day. Well, you will see. 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 derive joy from. So, 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. Heismuller. All right, let's see.

46:51It'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 Heismuller? All right, so... 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 for a month ago and the first business, I had a little bit of like, I grew too fast. And I had various issues. And so now I'm wondering how you could decide when to grow and when and what systems to grow first.

47:42Yeah. 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 growing too quickly were just insufficiently skilled. And as a result, things started breaking and falling through the cracks. So I went to them last year. Yeah. I think the issue was we identified it as like I went over my skis. Yeah. Yeah. That's what you said. Yeah. Basically, you were spread too thin. And you can be spread too thin because you don't have enough support from good enough teammates.

48:27And if I say anything you don't understand because I talk fast, just correct me or 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. Basically, 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?

49:14Do you? I do. So right now, I hired my first sales rep starting next month. Okay. And I'm doing 150K revenue this month. and I have like 25K profit. Okay. It's a little low. I don't know like if that. It's a service business? I do. It's like an HVAC company. Yeah. And we specialize on e-pops. 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. so 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?

50:11Yeah right and so for me a home service business especially if it's niche 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 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.

50:37It'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.

51:13So 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 employees so they don't have to think about them as much. You go from training to managing.

51:33Once 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?

51:54Do you give discounts when you sell people? Yeah, or anything like that. But I don't want 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.

52:26If you buy today, I'll guarantee this. Rather than if you buy today, 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, 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 price, I don't sell. Well, everyone's always afraid of that. That's why no one does it. Yeah.

52:56But I guess I do it now. Yes. Again, you have to focus on, the thing is, is you only, 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 chapter 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.

53:34This 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 fully on board. Yes. All right. You nailed it. Thank you. No, you bet. Thank you, man. Good luck with the business.

54:15Congratulations. 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. Bye. 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.

54:54You 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?

55:31How 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.

56:01But 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.

56:31No, 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 five minutes, and 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 okay now there's not high search volume but we do get exact match people searching for us yeah a lot of times they are our right fit and we are closing you know people in that kind of 10 to 30k price point range dude i love it actually 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 can i'm not past wedding age sorry but like But like, when you said luxury, wedding, entertainment, that, I mean, I'm a luxury buyer, right?

57:39That struck a chord. To be fair, though, the price sounded cheap for what I would imagine. Because luxury, to me, is significantly more expensive. Just a side note. True. True. I mean, honestly, there's, you know, for the ultra 1%, we're the downsell to the ultra 1%. Yeah. Yeah. So there's still headroom for us to send in price. Do you have a 100K 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.

58:23And 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. If everybody finds us, they're like, man, your brand is like the five-star four seasons. My pre-conversion. 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 to 30K doesn't sound luxury to me, man. I wouldn't even believe it.

58:58It's incongruent with the messaging. I mean, the luxury of people, they're 300K, 500K flowers. That's what I'm saying. Dude, like you're like, dude, 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. Pre-follow to our Zoom call. Yes, and 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, let me just, I'm going to cut through, like, let me just, let me love you.

59:40Okay. 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 make it seem like it's like, oh, that way we can tell you the exact perfect type of entertainment experience for a luxury wedding that would match your style wedding, blah, blah, blah, blah. 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.

1:00:12Or if they're not, then you just send them to PDF or something like that. 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?

1:00:36Which, 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.

1:01:05Now, 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.

1:01:40And so we should be spending our money in proportion to the memorability or basically the memory contribution 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 will remember what the entertainment was. That'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 a 100k offer up there but like 100k i think is probably where you is going to become your bread and butter, just being real.

1:02:36Like, 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 hedge fund manager, he doesn't give a fuck. Damn. Damn. Mind-blowing, brother. Yeah, as a luxury consumer, like, let me tell you, they will spend. They just want the best. And right now, your prices 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 and right what's your close rate yeah what's your closure right now um close rate you know we we meet with 10 we probably close i think like 20 out of it's only about 20 close rate of booked calls yeah of book calls okay of booked calls well how many of those would you say you cancel because they're just not qualified.

1:03:28They cancel themselves. Our automation shows them our pricing in advance. Yeah. They'll set up a meeting and then they'll cancel it because like, oh shit. Yeah, that's the thing. So what I started with, like that's where we have the question flow rather than, you know, request an invoice. It's like, no, like 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 calendar. You don't have to waste your time with it. Right. Yes. Yes. Yes. What percentage of the calls that you take to you close, not of scheduled?

1:04:03How 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, you know, that, you know, get on our calendar. So the way that I framed it is what that needs to be reflected in that BSL. It 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.

1:04:40And I think that you start with the$100 ,000, and you really do go for the$100 ,000. 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. That's now your new offer. I want you to wrap your head around that. $100K is the offer. But your core offer right now, which is your$30K, let's make it$35K because that's the same thing anyways. So make it$35K. 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.

1:05:24But 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? I'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.

1:05:52And 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. You have to truly sell 100K. 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.

1:06:22done. 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 100K. And if I'm right, 30 % are buying your 100K. And just by doing that, we doubled LCV. Thank 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.

1:06:58That 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. So who am I? Who do I? Who's hooking me up with a number? Ed, are you sending me numbers?

1:07:22we'll do it in a second okay i'll call one more and then we're calling single book buyers all right um hold on so i'm gonna call i'm gonna call an 800 buyer who's coming in all right ed text me another 800 buyer all right hamza sulliman 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 five minutes, brother. Talk to me. You're the dental list. You're doing$9 million top line,$3 million in profit, right? That's right. That's right. All right. $9 million,$3 million bottom. Okay.

1:08:09That's correct. So, I just want to say Happy birthday brother. Congratulations on the biggest and wildest booklogs, the worst, everything. I took the advice we gave to me last year in Vegas. We were doing around, I think, a million and a half. And then the advice it gave me was to do more, more, more of the same. And we ended up here at 9.4. So you went from 1.5 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 spend more time in the day doing ads, get more creative. Yeah, yeah, yeah, I remember, I remember, I remember, yeah, yeah.

1:08:49Yeah, so that's, anyway, so everything's been, I've been watching every single moment, every little piece I could get from you. Because 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. 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 or whatever the number is, 6X, right?

1:09:25You're 6X 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.

1:09:53That's one way. Now, given the nature of your business, you're not going to have a viral, I don't think, right? I don't think you're going to be like, I'll just leave it there. The main, yeah, your B2B, a high ticket service, like 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?

1:10:28It'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 OpEx. That's the game we need to get to now. That's your next level. How do you do that, Alex? Because right now I'm getting, I can see the pressure on the sales team. I can see that the kind of not listening as well, and it's hard I guess managing 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.

1:11:06That was the answer. Right now, the answer is not spend more. The answer right now is you have to keep. 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 a sign 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.

1:11:42No, 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 we got there. So we still 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 went back there and it's like how do i get a funny sales team here to handle inquiries and make sure no sure you don't go through the route because that's one well dude you just got so follow the the lead nurture the the lead nurture 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.

1:12:49I 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 at the, 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 complexity 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.

1:13:23When 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. Thank God. Okay, but in terms of how do you find salespeople, like 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.

1:13:50Same concept. You're going to advertise. You'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, you know, double the business or whatever. Amazing. Okay. I got it. Yeah, follow. 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.

1:14:30It'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.

1:14:41Okay. I appreciate you, man. Congratulations on your success this year. Thank you. 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. We're just going to call single book buyers. Yeah. All right. That's the, we just hit the milestone. Okay. Yes. So we're calling single book buyers. Okay. So do we have, am I getting some? Yeah. So they texted to you.

1:15:14Oh, there we go. Okay, great. 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.

1:15:29Brandon, 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, if you want proof, you just want to ask them 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 or two. 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.

1:16:11I 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, you know, I just had a group reach out to me and 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. But yeah, this offer's great. They scale plumbers, and they're so good, and I just have so much conviction for their offer. Who doesn't use that? 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.

1:16:52Yeah. And part of that is our close rate, or excuse me, our show rate is 20%, and our close rate is insane. and saying 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 they actually pick up, is that what you're saying, not scheduled. Yes, exactly. Yeah, a couple things. Yeah, there's a lot to work on, and I'm an amateur. No, you're good, dude. You're good. So 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.

1:17:28I'm calling them 10 times within the first three days, and I'm calling them twice in the first five minutes. You're doing all the fundamentals, the basics. If you're doing that stuff and you're still not seeing increases in show rates, then it's usually things that happen prior to the scheduling. Okay. So that means... It's less than being challenged, though? Exactly. 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 it's so easy to book a call that you actually have fewer total shows.

1:17:58And 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 just straight to booking or how's the I can't see the funnel but like is that the like how's it working I 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 and then it just goes straight to, hey, no, don't miss your call.

1:18:55And it's basically a 10-second video of the owner going, hey, this changed my life. Oh, and that's the VSL? Yeah, basically. No, no, no. 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. But the proof checklist basically help you script out the VSL because right now 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.

1:19:31The 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. So 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, you know, struggle with or like why they, why they object.

1:20:02Right. And so it's like belief one, two, three, four. And then we order this and you'll be able to watch this live stream later. So I'll just talk fast. So, so it's, it's, it's what they believe, why they're wrong, what's right. And then proof. All right. And then that stack of that four steps, you do four times. So it's basically 16 pieces to that VSL. And then you CTA at the end, whatever the next step is, which is like, hey, text us back this thing. And then when that person texts you, 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.

1:20:36It's just like plumbing. It's like, oh, we actually, I pulled up Google Maps and it looks like your home was built in 1971. They 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 now the question of you not showing up, I'm using a home services example, but the question vanishes. So they're like, oh, wow, they really understand my business. And so I would, if I were you, the salesman, we have to install those two playbooks.

1:21:03But 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. Imagine you're like, hey, so I know Tom and Gerald work for you. Do you have any issues with that? 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. Bye, I got. That helped? All right, man. Nice to meet you.

1:21:33Nice to meet you, too. Appreciate you. Yeah, cheers. 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. that I've been given as well. You 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. Like, wouldn't it be funny to be prank called by yourself? What? Yeah. You didn't do that in, like, high school? No, I didn't. I didn't.

1:22:06So lame. Your call has been forwarded to voice memo. Tough one, Santiago. Why don't you leave a voice memo? I want to. Gone now. That's so rude. He said no. Leave a voicemail. The opportunity of a lifetime. Just passed him by. Okay, well, I'll leave a voicemail. Fine, you 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 have a sales manager. for a oh that's crazy I'm the 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 that among all your other books and yeah just try to upgrade my career and sell some stuff 60 seconds to ask a question Nathan yeah that's pretty much it well i mean i can just say thank you yeah yeah honestly yeah this is uh 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 wood yeah we appreciate you thanks for supporting and buying a book yeah absolutely my pleasure guys i appreciate it you bet well hey Have a good Monday.

1:23:40Thanks. All right. Later. All right. Bye. I was like wave at the phone. That's my own thing. That's old man. Old man Mosey. Okay. Do you have a special number? I'm waiting on a couple of them. So let's go. We'll go with Alex. Alex. Oh, there's not enough room in this live stream for more than one of us. Not enough room in this live stream.

1:24:10Do not hang up. Oh, you want to leave that? Layla's going to prank call. Can you imagine this? Dude, do you guys remember when you used to be hot or not? You remember that? Dude, what did you do growing up? I went to, to be fair, I went to all-guy school, so hot or not was not really a thing. I'm Alex Miller with Lumps, Denver. Sorry, I missed your call. Feel free to shoot me a text, and I'll get back to you as soon as possible. Tough. Tough, Alex. But this is Layla and Alex from Rosie. What's up? Saying hi from OZ 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.

1:24:46I 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. All right. Okay. 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. All right, do we have another one? I don't know. It's taking this over so long. All right, fine. All right, well, I'm going to call the next one. I'm going to call this one. Yeah.

1:25:22All right. We don't even know who it is. Carlos. Hi, this is Carlos Rodriguez. Please leave your name and message. Wow. What should we say? Leave him something inspiring. Something inspiring. Leave no doubt. Be one of zero. This was Hormozy 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, calm down Jeez, Jake Come on, get out of here No, no, no, one second, sorry Oh shit! Oh shit!

1:26:02I didn't mean to miss anything Dude, you're saved by the bell dude i was i my finger was was hovering over that hang up all right dude how can we help man okay so who went when they're one um i'm a carlos rodriguez fan for psd research uh student what do we do um i make medicine so i'm working on creating new treatments for uh leukemia uh trying to get rid of chemotherapy and radiation to help treat people with blood cancer cool the problem that i'm having is that we're having a hard time getting funding right uh recent budget cuts a lot of funding is missing and harder for people to get funding.

1:26:38We just recently submitted one thing, which I think has a pretty high probability of getting us, you know, 100K, 200K over the next year or two, which isn't really enough to cover the three staff that we have. So I'm looking for you to see if we can come up with more creative ways of getting this research funded because we have some really exciting results that we can do bone marrow transplant without you know your radiation in nice budge we need well 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 and you get that once every decade or the more sustainable version is one grant every year or two and that keeps the lab running and helps pay for the staff.

1:27:41Yeah, heard. 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? And so I think to me, I would hear this and I don't know, Laila, 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 like how can we max maximize the likelihood of success right there's only so much um that you can write or rewrite yourself.

1:28:22There's all these AI detection tools. So you have this body of work that you've written. 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 said you only applied to three or four. 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? It stops. Right, so to me it's like life or death Right, it's Right so to me it's like alright well then like what it like again.

1:28:58What 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. Right. I guess shifting everybody's focus from the research that we do You know we have a body of yeah 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 and volume of applications literally to get grants. Are there other perhaps creative strategies, I don't know, crowdsourcing funding for research?

1:29:36Yeah, 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. And 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? I'd say pretty good. All right.

1:30:09Well, to me, it's like I don't even have another question. It's just 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. Hey, we got to try a little bit harder. 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 going to stop no matter what, unless this gets solved. Right. So like, that's that.

1:30:44But 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 man thanks for saving lives all right all right all right wow so discreet all we're doing so uh all right santiago santiago ramirez i know tyler mars that's the just just popped up all right tyler mars it's you you're up sorry oh has calling restrictions that is... All right, I got one. Call her. Go for it. I got one. Okay. These are hot. Hot dials. The weather is hot. I just decided to call. Oh, well, there you go. Well, there's no overhead mic. You're good.

1:31:28Or overhead thing.

1:31:33Cameron. Cameron. 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 you doing? 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. Great. Oh, good. Yep. Good. Yep, he's doing great, man. Having two girls is a wild ride. All right. Alex knows what that's like. Having two girls? Well, you know, anyways, it was before Layla.

1:32:21We're running on fumes here, Cameron, okay? Okay, talk to me. 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 whole – anyways, so tell me about the business, man. What can I do? So physical therapy. You guys are online. Yeah, tell me what you're doing right now. so yeah we had started as online we moved into two sublease brick and mortar spaces okay 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 just travel time and everything so I just advertised the brick and mortar yeah um when my wife Lindsay she's been crushing it yeah Where we kind of hit a snag was we had we made a higher last year in September hired a PT Okay, and then just when Lindsay came out from maternity leave Yeah, I found out our PT just like tanked and so we just separated with our PT this past week Got it.

1:33:18So our margins had like on 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 I'm gonna step in while we while we're looking to bring in two PTs. Okay, and this is brick and mortar right? Yeah. 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 from our patient base or referral contest. Yeah, heard. So the 40 % comes from ads. So I mean, right now the limiter to grow it, like how much more, how many more patients can you take before we at full capacity at the location?

1:34:03That is the problem, is that we have these two subleases that just don't really allow for us to grow. And so it's been kind of stuck in this cash flow problem where it's like I'm not able to generate enough to move out of this. So I wonder if you have a pricing issue. Yeah, so we increased our price four times over the past year and a half. Love this for us. And so our single visit rate is$279. And then we offer most of our, we try to not sell one-offs. So we do packages, and we have two different ones that we sell. Okay. What's the price point? The lower one is$239 a visit, and the other one's$239.

1:34:54And you're selling them as bundles, though. You're selling them as solutions, right?

1:34:59I 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, right? Yep. 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.

1:35:31You know what I mean? Since you're in a, you are, you know, a doctor. So like if you have the option, which you do, I would use it. And if you're not, if you're like, if no one's even needing it, then to me you still probably have some room to increase price because if you're like, you're struggling with cashflow, 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 public health, that niche, So the two places we sublease are multi-provider practice areas. So it's birth specialty workers. So that's where we get like a shit ton of referrals from.

1:36:09Why not specialize in that? What was that? Why not specialize in that? Because I feel like it's got to be. So the only reason I'm even going back into treat is just to like bump our cash flow up. Okay. So you got to do what you got to do. Okay. Right. Yeah. It's not like we'll go on it too long term. Okay. But yeah, it's just so we can get somebody, so I can get a little bit of cash so I can bring someone back in. Okay. 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?

1:36:49I 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. So I can leave whenever. 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. Even from like your Instagram stuff? Yeah. I mean, we haven't been pushing the online stuff. I can, I definitely can. You said she's in pelvic health, like pelvic floor therapist. Yep, yeah, she's a non-for-printee. Yeah, that's why it's in person. It's a little tough online.

1:37:26Yeah, okay, heard, got it. Well, it's not, okay, plain to you. So fundamentally, we just need to make more money, and the way to do that is that we have to get more people in, ad 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. so it's like a clinic tour and like welcome so i'm gonna i'm gonna mimic that and then build it into ours yeah well like that like right now you you're selling 2k plus packages and you're doing it without a vsl without financing which means that you probably still have room to go up price wise yeah and lindsey's close rates 95 yeah right i mean it's good so you've got to like people are coming in for that or in screaming hot pain from what i understand um and they just had like like a traumatic event or they're about to, you know, I would raise the price, man.

1:38:25If 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, I forget who you were talking to me, but you said something that was, like, really intriguing to me. It was a little bit different from the model. Like, I was, like, doing SaaS stuff. Yeah. You know, 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 for me our biggest problem is i don't think we have or not our biggest but a big problem is we don't have like strong uh monthly repairing so i think it would be interesting if like i did something similar when you're talking to that guy where i have like a premier package for like somebody who's coming with that hot spirit pain and i said but like i'll give you this for free yeah if you just come into this.

1:39:16That's the decoy offer. That's the decoy offer in Money Model. Like, you know,$1 ,500 a month. Yeah, that's the decoy offer. That's what it is. So they come in, you say, hey, this thing's$6 ,000. Or if you just become a member of our, you know, Pelvic Platinum Club, Platinum Pelvic. Who doesn't want a Platinum Pelvis? Right? And so then we'll give you this$6 ,000 gift for free if you just join our club, right? Obviously not club, but you know what I'm saying, right? Like the membership. Right. So that's like, So either or is fine. Like if you want, you don't want to do any continuity, no big deal.

1:39:46You 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.

1:40:21So 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 take 550 as 400. So that's the 50-50 split and you'll have more front-loaded cash. If you want more people in a 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.

1:41:01And 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. 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 middle school. Middle school together, but we were neighbors. and so from Baltimore you can hear the Baltimore accent you know I've been told that several times and I still see this day I'm like dude you have like a deeper southern draw than the last time I talked to you maybe yes okay well dude I gotta hop on these other calls but I appreciate you man of course thank you so much all right see it all right Hermosi hotline uh 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 I've got a free digital copy of this.

1:42:31This 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. Yeah, 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 Is this single book bars?

1:43:03No, this is 800 Okay I thought we did it Hey, that was up Hey Speedy Gonzalez on that one, man Alright, well Joseph, Fit for Life Academy 600K revenue, 300K profit Shoot, talk to me You've got five minutes First off, happy birthday, Alex Thanks, man I appreciate it Happy birthday I know For the 1 ,000th time Anyways, 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 team 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.

1:43:45Okay. And where is it 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. It would be 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 end on social media. Okay. 100 % organic. We don't do any paid. Okay.

1:44:15That goes into a DM setter flow in the DMs. Okay. And then they book sales calls. Okay. 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. Okay. 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. have been one long podcast and one long YouTube per week.

1:44:52Per week? Okay. I could double down and I do want to. It's bandwidth at the moment. Okay, so this is what up. 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. Yeah. 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 uh probably between 10 to 15 hours of my week goes towards concentration and that would just be scripting recording we have an editing team that's all of the editing and posting for us.

1:45:46Do 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. Hooks, exactly, yeah. So you do a lot of that research? I do 100 % of that. Oh gosh, 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 literally automate that task now. Okay. 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.

1:46:24It'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 more research also 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 now 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 leaps 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 center, 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.

1:48:14Do you, when you're running a DM flow right now, is the, at the end of every reel, are you saying like DM, PDF, or DM? Every single video and stories daily. I 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 many, many times a day on trial reels? No. Okay. So right now, trial reels are 100 % guaranteed new audience. So what I would do is look at your sort by best reels of last 12 months. Right? Okay. And then you're going to get, call it your top 20 or top 30 of all time.

1:48:54And 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, 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.

1:49:25because 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 they're not going to be nearly as warm as the people are doing it now even if it's retargeting based to people that have engaged 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 I would do aggressive volume on the trial rails as thing one and 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.

1:50:06Because 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 that 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$68 ,000 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, the organic concept?

1:50:36I just, what do you think? Not while you're selling. Well, not while you're selling. Yeah. I just look, the thing is it's like hard for me, which is like I prefer, if you can, to hire a head 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 you say, I am going to take those calls and then you drop the ball on your content. And 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. And in the process at the moment, I'm in the process of hiring two sales closely.

1:51:08So this all makes sense. Okay. Rock and roll. Thank you for donating books, man. Appreciate you. Of course. Thank you. All right.