How I'd Turn One Event Into $2.5 Million | Ep 1000

0:00My name is Alex Hormozi and this is Scale or Fail.

0:11All right, tell me about the business. I'm Dr. Zyad, CMD. I own Precision Health Concierge Medicine. The business was in business for 18 years before I purchased. I've owned it for the past 18 months. Okay. So when we purchased, revenue was around 1.8 million. We've grown it to 3 million in the last 12 months, profit of 600K, excluding my comp. What comp do you take? Last year, it was about 300. And this year, it'll be a little bit more than that. And then three-year revenue goal of$15 million. Cool. How do you get customers right now? Right now, most of it, well, it used to be mostly word of mouth.

0:49And over the past four months or so, it's switched to SEO. Yeah. So originally, we had a rough first year, issues with the seller and then issues with marketing. So we knew that marketing was our big bottleneck. And so we went out and we interviewed five and we hired one and$50 ,000 later and no progress. We ended up firing them. And I went on the website. I did all this myself. um seo turns out on the back end was trash so when we finally found somebody to fix it um they started actually doing their job and seo converted really well so what's stopping right now from scaling uh it's mainly the the marketing piece um we're just not that good at it it is interesting um the 55 000 on the bad agency and and what you were saying earlier about like this motherfucker so because i see that and i just think yeah it's cost to do a business you know like it's i wouldn't even that was the lesson learned yeah but like and it also doesn't mean agency suck like the next one you work with it worked fine it's just like it's just part of the game you're it's just you have margin so that you can try out a couple until one works what do you think is going to get in the way of scaling for you the landscape is changing pretty quickly and if we are not doing it correctly it can fall apart pretty quickly the technology aspect just from when we started the technology has improved so rapidly if we don't do it properly every practice that we go into that we don't do well could cost us months to you know a year or whatever that is uh when we're small and the competitors are going to eat us up okay do you not agree i i'm all for having a lot of urgency i think people are gonna keep getting sick for a time yeah yeah and i like if i were to bet on industries i think health care is fine like which ones are going to get disrupted they're going to have more time to themselves uh and i think there's also a high-end component to this which is like you're servicing people who have money and i think generic health care will change a lot with ai your gps your general practitioners etc people will always be willing to pay more there always will be a slice all right well let's let's sit down and figure out how to scale the sleep.

3:09Okay. So I really think there's, call it three real things to cover. And that's kind of it. All right. So the first is how can we speed up the referral machine? Right. And so the question is right now, what are you doing? Obviously you're getting word of mouth, but what are you doing in order to lubricate or facilitate it? So we need to do more open houses. We did two. The one open house, we offered members a$500 credit for both the member and the new signup. And then we did some raffles, gave some people some free stuff. So we introduced them to some of the aesthetics. I love the giveaway. If you want to have like way more people participate, just give a year of the service away.

3:50Just a full year of your optimized health. That would be my grand prize. The second place prize, and the way I'm thinking about this is like, we want, you want every referral to have a great reason to tell a friend for the customers that you have$500 probably makes no difference, right? They're probably going to refer you anyways. So, and you just asking is what facilitated it, but to like make it so that it's social capital positive rather than neutral. I'd, it'd be better to do either your friend gets some real treatment, some actual thing. That's like a body optimization, whatever or the six-month supplement thing or that or uh you both get it as like if you if you refer a friend you get this treatment the the shtick is that it's a thousand dollar two thousand dollar type i would say type ticket um but your cost on this can be way less than that obviously it's just a way better reason to come in yeah right and it's only for referrals so it's not like we're running that as ads so you just have like you know tom dick and sally coming off the street who are like oh i heard i got a coupon for like that's not what you're looking for yeah But it's like anybody who's an existing, like it could even be a perk to me, kind of like at a gym.

4:57You have like, you can bring a plus one, that idea. But like, if you are, call it our, you know, you have our 5k membership, you get five times our$2 ,000 one-off treatment or$1 ,000 one-off treatment that you can give to your friends and have them come in with you to do it. To me, that's like a much more compelling offer. and then what this does is that it allows you that every touch point we can ask them about it so it's like we have the of the immediate close right so this is kind of point number one that you can make it so you you just closed them you're like hey by the way um a lot of people like to do some of these treatments together because a lot of fun and so because you're now one of these members you're going to be able to bring a friend with you at each of these four instances and so whenever they book it ask what friend they want to bring do you like that yeah it'd be uh it'd be a great way because our aesthetics business is pretty much completely untapped.

5:53And so that would be a great way. It's easy to do. And like people who are investing in that typically there's strong crossover. Yeah. Um, the second is what, is there, what, wow, what moment are people like, whoa, like, you know, what is that wow moment in the patient journey? Uh, it's a little bit different for everybody. Um, so like, you know, the average 50 year old guy who thinks he's perfectly healthy. And he comes back in in four or five months. And he's like, dude, I haven't felt this good in years. And I'm like, yeah, it's because you didn't know you were feeling like crap. Now that we've actually fixed all these things or like, you know, the 80 year old patient who, um, you know, lost a bunch of muscle mass and could barely walk.

6:32And now that we've used whatever treatments we have and they're like, wow, you know, I actually got my independence back. Do you do love that? Do you do what cadence of, of touch points do you have with patients? The older demographic usually starts out at a much higher cadence at like 60 days and then 90 days. And then we kick it out. As we optimize, we kick it out. And then younger people. So like if you signed up, right, you'd come in for your labs. You do your VO2 max testing. You do your nutritional analysis. And then 30 days later, you show up. You'd come in for your one hour appointment.

7:05Is candy good on my nutrition analysis? 100 % perfect for you. Solid. I love that for you. So and that's the thing. It's personalized medicine, right? So you do what you want. I just give you the information. Hey. Yep. What I'm trying to identify by asking the question is, if there is a universally, they're going to feel much better at day 90. And then get the referral. So it's like maybe 90, because it's... 90 days is a good spot. Okay. We have actually already kind of solidified on that 90 days that we're going to start implementing. So we have one at our close. This is our offer. We have our 90 day.

7:35and for me i would want this to be a bam fam process meaning every one of these kind of meetings we we set the next one and then we say who do you want to bring with you and so it's almost like assume that you're going to bring someone with you every time because that's how we do it and we've also and i'm sure there's tons of research you could back it up that people who do healthy things together are five times more successful blah blah blah right and so this is like this is evidence-backed which it is uh when you do things together you will get way better benefits. So like, let's like, I'm doing this as a practitioner.

8:04This makes sense. A lot of times that's how we get family members. So wife signs up, we get husband or husband signs up, we get wife. Yeah. So the third is you have a newsletter, correct? Yes. Okay. So what's the CTA inside of your newsletter? So we are, we're very low pressure, right? So we don't have calls to action. I'm realizing now, uh, as, as we're further in it, that I truly do now feel that our product is so good that more people should know about it. And so we're, we're not afraid to ask people. So I have not thought of putting a call to action in the newsletter yet. This is what I want you to do.

8:40P.S. Perfect. Very simple. It's very, just, it's, it's, it's not in your face. It's just like P.S. Um, this quarter we're running a, uh, uh, you win a year of our premium VIP service from any of your friends and family. And so if you want to enter and anybody who enters automatically gets that no matter what. To me, that's like pretty compelling because they're doing their friend a favor because they're getting this no matter what. But then the friend is really excited. And, uh, for this big giveaway. And the nice thing with giveaway specifically is that you can tell everybody what the prices.

9:12So there's no sticker shock because when they come in and then we offer, like they come in, one person wins the 20, but then everybody else are like, great, you can do the 5k or the 10k or whatever else. And I think you doing the drawing at, if you do that raffle thing that you do, like once a quarter, you do one of these to the list, that'll probably in and of itself generate a lot of business. Okay. That feel okay? Okay. So this is kind of like the referral engines. We needed a referral offer, which I think this feels okay. This BAMFAM approach of you're going to get five of these called coupons, not coupon, we wouldn't use that word, but like every one of these five treatments, you're going to have the option of bringing somebody else with you because of all the evidence reasons I just said.

9:51So who do you want to bring with you next time? Because now we're not asking for referrals. We're just saying, who do you want to bring? It's just, it's just much easier. Yeah. Okay. So the second element of this beyond the referrals, um, walking through the sales process. Now, since we have the sales, uh, the, um, marketing person in house, uh, she handles all of the calls. And so she does her, um, script about what our office is. And then, um, she finds a 15 minute time on one of the physician schedules. So there's a phone call first, right? And this is the marketing girl takes this. Yep. All right.

10:28So this is set. All right. And then they come in person or they go zoom. Uh, for the most part it's zoom. I would say about 10 % come in person. Interesting. Okay. And then the zoom is with the doc. Uh, well the zoom is, is with Hallie, marketing again? Yep, marketing. So this is Doc plus her. Okay, got it. Now what? They either sign up or they don't. On the call? Yep. And so if they want to come in to do a little bit more discovery, they'll do a walk around with Hallie and then they'll decide whether they want to sign up or not. Got it. So I call in, hey, I need my health to be not sucky. She says, great, let me see if I can find a 15 minute slot on Dr.

11:12Z's calendar. And then she, you see a 15 minute slot on your calendar. She takes, she hops on the zoom. She says, okay, let me go get him. She gets you, you hop on, you say, Hey, I think you should buy some shit from us. Uh, I'm kidding. Uh, and then the person says, yeah, that could be interesting. And then you're like, Hallie will take care of the rest of the, the, the business. And then you hop off and then Hallie closes the sale. Yeah. Effectively the, not effectively that effectively why they want to speak with the physician is because they want to know what we're going to do, right? Because what we're doing is a little bit different than most other physicians.

11:45And so they want to take the time to understand if we actually do what we say we do. And so it's kind of building confidence for the patient, like, hey, we're going to do all these things and we know what we're doing. Okay, great. So after that, they then come in person? Yeah. Okay. So they get onboarded in person and then at this visit, that's all onboarding. Do they get any treatment? So what we do is we have instructions for fasting labs. Based on that first call, we've analyzed what type of labs we want to run with them. So we do labs here. Okay. Got it. And then? Then they have a in-person meeting with the physician 30 days later.

12:21Got it. So to me, this looks like a warm process, not a cold process. Because someone just getting on the phone and having a phone call and then 15 minutes to 10K a year, they've got to know something about you most likely in order to make that purchase here. This will work for the style that you are doing right now. The close rates are fine. Like if you were running meta ads or search ads, it would be, it'd be unlikely that we'd need to put more friction in the process in order for this to work. But I'm not necessarily sure that that would be my immediate recommendation. And so if we're looking at the demand side of the business further this way, I think basically you should probably have an event-based marketing strategy rather than ad space not to be clear not that ad space doesn't work it does i'll give you i'll give you two adjacent strategies that you can do in sequence rather than a true like out like rather than what i would consider be a traditional like call funnel which i don't think is the strategy here so number one is you did one event right and it was honestly lackluster in your ability to do the main thing that would have mattered for the event.

13:29Right. And so like, I think there's a world where you could have spent $10 ,000 and made like 400 instead of whatever you made 70. Right. So in that world, it's like, how can we do one a week? Yeah. No, I guess that's, that's really my question is like, is there anything that prevents you from doing one of these per week? Cause there's for sure events. You're in a big enough city where you're in, um, Sarasota. There's probably a health or wealth or business related event. Yes. Every week for sure. And probably more. And so I would take that as my primary kind of like paid strategy is you bring the big machine that you got and you do the expensive scan, which is normally$500.

14:11I don't know. What is it normally? So realistically, we could do like 150 bucks. Okay. Actually, there is another machine that we're going to buy that people are literally driving across the state and people do pay$500 to$1 ,000 to use that machine. Is it something that people would get more than once? Oh yeah. You do it every six months, especially once we put you on treatment to analyze. Okay. So then I would say I would still do a giveaway at the event, which is a year of scans. Right. And I'm trying to think like, maybe call it like a year of digital health. Cause no one's a year of scans.

14:43Right. So it's like a year of integrated health, same big idea of giveaway. And I just wouldn't be afraid of like this is marketing. We have to be willing to give things away and know our math. The first time you do it, you're afraid of that. You're going to give one client away, but you got 475 patients. It's not going to make a difference to the business. And so it's like, I would be wanting to give away the 20 K thing because what's that going to do? I get to talk about it to everybody, but it's like, it's not a, it's not a, it's not a pressury sale. I'm like, this is what we do for our VIP enter here.

15:10In the meantime, go get a scan right now. You're going to have a line. That's what I want. I think what I would do is I'd have my scan. I would have people watch a VSL and set an appointment for later that day for a close. You just need some separation. So is there any part of this process where there's some kind of baked in five to seven minute wait at some point? The scan itself will take 20 minutes. Okay. Can they watch something while they're getting scanned? That's true. Yes. Okay, great. So we do scan plus VSL at the same time so that they understand what's going on, but the whole time they're being sold.

15:44And then right afterwards, you can have those closed meetings. You'll know immediately if it feels too fast. If it does feel too fast, I would just set the next appointment and add a VSL in between. That would be it. So like V1 test is scan plus VSL straight to close. The V2 of the test, if for some reason, like you'll get a vibe if you're like, people feel like, this is too fast. Then V2 is scan plus VSL. And then we do appointment as our next meeting. And then before they have the appointment, either VSL and you close. It's still two appointments. I'm just saying you may schedule it here. Okay.

16:19So I would just say like, can we do one of these per week? And from a scaling this perspective, every practice that you have, there's going to to be events. They're going to have high net worth individuals that are older that are going to be attending. And it doesn't really matter. Like you could go to a cigar, but maybe they might have them. I mean, Hey, there's people who like cigars who also still want to be healthy. Yeah. 100%. We can bring in a, um, uh, yeah, exactly. Um, so I think this would be my, this would be my strategy. Big giveaway. Everybody gets a scan while they're watching the scan.

16:56we then set them up for a close. If not, we schedule and then meet up the next day or we can do Zoom afterwards either way. But this is going to be monster legion of the events. The second, which is the even more scalable version of this, which honestly you could probably do this and get to your 15 million, which I like hesitate to even bring up more, but we're doing it for the people at home. Like you said, you have a partner that's in wealth, financial advisor stuff. So one of the most common for like a high trust sale in-person events and workshops work better than just about anything. Yeah.

17:22And so you could do a one day full health thing that includes this scan and maybe one other thing that's baked into the ticket. And then you just talk about your stuff and it could be a half day. It doesn't really matter. It's kind of like the diabetic dinners that you might have heard of that kind of world. It's the same idea. And then I would probably meet with them in person to close. And so your lead gen is basically ads. So this is where this is where like meta, this is where a meta ad campaign would be like more valuable. But you're going to have to sift through the crap, but you also have the ocean to go after.

17:51So that's a bit of the trade. But I'll just walk through this. But this is for sure what I would start with on the demand side. So we'd run meta ads, it goes to the one day workshop, name it whatever you want. One day workshop with the, you know,$500 in scans, whatever, you can charge money for it, you can have it be free. It's probably better to charge something for it, make it$99, just so you get a little bit of riffraff out. And you also have a card on file, which makes the close easier. And then from there, then I would just book all the in-persons and then at the in-person and then Hallie does the close.

18:30And between here, they watch a VSL before they come in. So it's basically ads, pitch one, schedule, pitch two, with VSL in between. So if we're looking at big picture, what this hits overall, the big meta thing is the attraction offer that you're going to use as a giveaway. That's going to be to get referrals. And then the BAMFAM, so book a meeting, front meeting, every time that they have their treatment, we should ask them who they want to bring. And that's one of the big benefits. And then we peel them off and we run the sales process because they're going to be warm anyways. The existing process will work.

19:04Newsletter, we add our PS. And then we add our 90-day checkpoint as well. But I still think this is going to do the majority of the work, which is every single time they have a meeting, ask who they're bringing with them. And that's one of the main benefits of working with us. Now you can't bring the same person twice, but you can bring anyone you want because the marginal cost is nothing. And if you convert a third, it's like, who cares? Right. Sales process. I'm not going to mess with. This is what I think is going to be the big thing on the demand gen side. And you already know how to do this.

19:33And so it's really just how many events can we do? And so I would just challenge you to be like, can we do one a week? You'll close a year's worth of income every, every event. I mean, that would be incredible. Yeah. I mean, if you have a 300 person event, you could probably with that kind of offer, get scans on a third of the people there. Get 100 scans. If you convert 25 % of people who get scans, 25 sales. Yeah, it'd be nuts. Right. It's two and a half million in event in LTV. Yeah, it'd be nuts. Who cares? And to be fair, what I'm seeing, because I look at a lot of businesses, the people who are running this model are printing right now.

20:04And so the numbers are insane. Yeah. And you have unsophisticated business owners, which healthcare professionals tend to be, even the entrepreneurial ones. And it's just because like most of them, the reason I laughed at the$55 ,000 thing is it's like, there's a curse of being a physician. And I know this having three physicians in my family, um, is that because you started in business trading your time in the beginning, there's a tendency to like think in small numbers. And there's a reason that like not many physicians actually scale their practices, like by number of physicians versus scaled practices.

20:35It's a crazy ratio compared to almost any other business. And so there's this trap of making a lot of money, but not so much money. That's like enough money to be comfortable, like golden handcuffs. And so they tend to be very risk averse because also the type of person who gets into medicine tends to, tends to not always, but is very risk averse. Um, there's also the world of defensive medicine and all that I want to get into. Um, but all that to say, it's like that 55 grand who gives a shit. Right. And then betting on this, uh, you know,$10 ,000, it's like, they want$50 ,000 for this event. It's like, yeah, but if we do a million bucks, who gives a shit and we might do one and it might not work but it's like this is the game and all we got to do is find one event and then after we have that one event we just know from every year here going forward you're now in our permanent event calendar and so the goal is we just get we try out event try to edit and then it's like every other every third becomes a humdinger and you're like great this is permanently in the calendar and every year we reach back out so hey let's be a platinum sponsor whatever and then that becomes the marketing cadence and then you're gonna hit capacity really fast yeah that would be the game that i would play i agree feel good great any questions about that no it's uh i like i like this idea because um it's it's kind of the way we were going but um this is a better way to do it right so yeah that's what i would do thank you appreciate it yeah easy

21:59all right let's look at the scaling roadmap let's see let's see where the practice is at right now you're doing three million right how many people work at the practice right now 16 16 okay so you're you're going to be in this phase into this phase so the productized to optimize phase so 10 to 19 you're in like kind of the director i don't know what your title is but it's probably medical director or something like that where's the ceo i'm the ceo that's right lord lord of lords lord to Aussie. I kind of don't have a true title right now. Basically the other founding partner, he's the medical director.

22:31So I'm kind of in this weird phase where I'm almost still part of the business, but I'm not. And so I'm trying to figure out what that role actually is. But essentially, my goal is to try to help grow the business. Cool. So if we're looking at this, this is where you're at to graduate into the next level. So I'll just walk through this really quickly. but right now you're in the process of having this kind of supplementation and the aesthetics angle. And so like, that's what you're building into increase LTP right now, right? That's thing one from the, um, spending more niche down messaging with new offer.

23:01So for us, the new offer is going to be that giveaway. Right. Um, and that's, that's basically the play here. Now the sales ads material, you're in process for the VSL, right. And basically building out this sales motion that we just went over. That's kind of like what we need to go, what we need to do to graduate from here. And then the CS playbook, the onboarding is this bam, bam referral process where it's like, okay, bring a friend every single time. And that's the game that we're going to do to increase LTV on the backend. Now, from like, what are the problems that are about to hit, right?

23:34Quality is going to start becoming an issue as you get more and more patience, especially as you get this machine turned on. And then you're gonna have new docs in that aren't as experienced, don't know you as well, et cetera. And so it's like, how do we have incremental product improvements for the customer roadmap that we're on. You probably won't need to worry about the ad assembly because we're going to be doing basically event-based marketing for now. So it's really just reach out is all we have to do there. But sales training is going to become a bigger issue at these events. And so it's like, we're going to have to get better and better.

24:00And we're systemized at the sales training also means that like, you're gonna have to like coach Hallie might have to coach other people to do it because there might be a world where you're doing two events a week or three events a week. Right. And then, uh, I'm going to bet cause you're at, you know, almost 500 customers when you're at 1500, you're going to see that there's some clear cohorts. And we covered some of this activation with that 30 and 90, but there's probably going to be a customer in there that's willing to pay 50 or a hundred thousand here. And we want to give them the opportunity to do that.

24:27And so we don't need to worry about that now, but that's like what's coming around the corner. And so that's where you're out in the scaling roadmap. And for anyone who's at home, we're welcome to download this for free. Just type information. I'll tell you where you're out. There's 90 minute video that tells you what to do. Okay. So I'm going to simplify this because we talked about a lot, but I want of like every person who comes in we need to ask them who they're bringing with them for their each treatment to your list we're doing giveaway once a quarter which in this 90-day period that we're talking about this has to happen yep and you need to get really violent with how many how many events are coming up that you can attend and run this play let's say do you have kids no okay do you wife yes okay let's say your wife gets napped unless you do a certain amount of events how many events do you think you can do between now and 90 days from now i'm being desert i would do 90 you do 90 if if that were the how about how well then can you do 12 realistically what we were planning was one per month okay i would just like to say let's do one a week if we yolo it we We will try.

25:32Your wife's going to get nipped. We will do it. Okay, great. We will do it. Okay. Well, I just want to see a world where we do 200, 300, 400K from 10 events over the next quarter. That'd be fantastic. And you do 4 million. And then you're already pacing your, I mean, plus your three, right? You're already pacing your at least, you know, 10 million plus by the end of the year. Minimum. That'd be nuts. Or awesome. Or awesome. Cool. Let's do it.

26:03and so that was scale or fail we'll see you next time