Helping a Personal Stylist Scale Past $3M | Ep 811

Want to scale your business? Click here. Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth. Follow Alex Hormozi’s Socials: LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Alex Hormozi?

  We want to decrease the friction here for qualified people.

• 0:03Speaker 01

  Right.

• 0:03Alex Hormozi?

  So there's good friction and bad friction. So good friction is something that increases the overall quality of lead and gets out people who suck. Bad friction gets everyone out. A slow page load time, for example, everyone leaves. Good people and bad people. We want to get the type of friction that only bad people leave and good people stay. And so if we have budget authority need timing, we have the specific things relative to lead magnet, then your follow-up, if you want, like, hey, if you can send me a picture, it'd be great. If not, I can just go off of your Facebook profile, something like that. Then they show up to the call. You have your one of templates that you already figured out ahead of time. That then sets up the sale.

• 0:38Alex Hormozi?

  This is Ashley. She has a personal styling business. She does about 300,000 dollars a year, and we're going to help her scale.

• 0:44Speaker 01

  Hi, I'm Ashley Capps. I'm founder of AC Styles. So we are a professional wardrobe and personal styling service that helps transform our clients' confidence and save them time. So revenue, we make about 309,000 annually, 130,000 in profit. That gives us about 42% in net margins. So we've been in business for about four years, and so far, we've served over 1,000 clients.

• 1:12Alex Hormozi?

  1,000 clients?

• 1:13Speaker 01

  Yeah.

• 1:13Alex Hormozi?

  How'd you get 1,000 in four years?

• 1:16Speaker 01

  So that's over my whole career as a stylist.

• 1:20Alex Hormozi?

  So the business has been for, you've done 1,000 yourself. Awesome, super cool. So who do you help specifically?

• 1:24Speaker 01

  Right now, about 50/50, men and women, typically in their 40s all the way to their mid-60s. These are folks that are stay-at-home moms. They could be frequent flyers. They could be going up in their career into the C-suite. And it's those that really value their time and really also value having expertise.

• 1:42Alex Hormozi?

  Okay, got it. So what do you do? How do you help them?

• 1:46Speaker 01

  All right. So we transform our clients' fashion style and confidence and also help save them time. So we have two different phases in the way that we do things. So onboarding phase, phase one. So we do a style assessment. So basically, we establish baseline with their current style.

• 2:00Alex Hormozi?

  So low style, you look terrible. Like, look at the mirror, you look horrible.

• 2:04Speaker 01

  Pretty much. We establish baseline, and then we show them where they can go. So once we show them Where they can go, that's when we go in, we gut the closet, we get rid of everything. And we get them into some new outfits, looking, feeling good. And then from there, that's when we determine, you know, just based on their lifestyle. Does it make sense to work together on like a monthly level, on a quarterly level? And at that point, we have ongoing styling sessions, we put lookbooks together.

• 2:29Alex Hormozi?

  Okay, cool.

• 2:30Speaker 01

  And we have like an on-demand service as well. That they can text us if like, oh, I got a hot date tonight.

• 2:35Alex Hormozi?

  If you will.

• 2:36Speaker 01

  Pretty much.

• 2:36Alex Hormozi?

  All right. So when you say you show them what the future looks like, is that just like, here's a, like, like, looks of like other models or something like that, or like?

• 2:44Speaker 01

  Yeah, so it's putting together a style mood board. And then we also, prior to that, we say, hey, just based on your complexion, here's the colors that are gonna complement you.

• 2:53Alex Hormozi?

  Cool.

• 2:54Speaker 01

  And then based on your dimensions of your figure, here's like the silhouettes that are gonna work best for you.

• 2:59Alex Hormozi?

  Oh, cool.

• 2:59Speaker 01

  And then a big component of it is lifestyle. Like, what are they doing on a day-to-day life?

• 3:04Alex Hormozi?

  Yeah.

• 3:04Speaker 01

  And making sure that whatever they buy fits the life that they're living today and not just like, oh, that looks really cool on a mannequin.

• 3:11Alex Hormozi?

  How do you make money?

• 3:12Speaker 01

  Important question.

• 3:13Alex Hormozi?

  Yeah.

• 3:14Speaker 01

  So, onboarding package that I mentioned, eighty-five hundred bucks, that's over the course of sixty days. Then it goes into either monthly at two K a month, or quarterly at forty-five hundred a quarter. And then right now, we also make about ten percent of our revenue from commission from clothes. We get about ten percent margins from the vendors that we work with.

• 3:34Alex Hormozi?

  Okay.

• 3:34Speaker 01

  And right now, we just actually focused on having just this luxury tier. In the past, we had two different tiers and we focused more on one time.

• 3:44Alex Hormozi?

  And you realize you make more money on the luxury tier, so you do more of that?

• 3:47Speaker 01

  Yeah.

• 3:47Alex Hormozi?

  Love it. So, how do you get the customers? Where do you find them?

• 3:50Speaker 01

  So, right now, we're doing AdWords. We're spending about three hundred a month with Google, and then we're also spending about three hundred a month with Thumbtack.

• 3:57Alex Hormozi?

  Okay.

• 3:58Speaker 01

  We also partner, we have affiliates with other luxury-like services, like matchmakers and things like that. We host events, and then also, of course, client referrals.

• 4:07Alex Hormozi?

  Do you know what percentage of customers come from each of those? Roughly?

• 4:10Speaker 01

  So, yeah, about...

• 4:12Alex Hormozi?

  If you don't know, worries.

• 4:12Speaker 01

  Four are coming from affiliates.

• 4:14Alex Hormozi?

  Okay.

• 4:15Speaker 01

  I think about a third is coming from the other two, and then a third is coming from referrals.

• 4:21Alex Hormozi?

  So, kinda like evenly split between referrals? Would you consider affiliates referrals or no?

• 4:26Speaker 01

  No, I kind of segment those out.

• 4:28Alex Hormozi?

  Okay, so referrals is one, affiliates is another, then paid ads between Thumbtack and Google.

• 4:31Speaker 01

  Yeah.

• 4:32Alex Hormozi?

  Okay, cool. Okay, so how many people do you sell a month?

• 4:35Speaker 01

  Right now, we're looking at about 12 total leads, eight appointments, 100% show for those appointments. Total sales four, so close rates 50%, show rates 100%. Forty clients currently and one churned in the last year.

• 4:49Alex Hormozi?

  Okay, so you still, so these 40 clients still pay you monthly? These are active?

• 4:55Speaker 01

  Yeah.

• 4:56Alex Hormozi?

  Okay.

• 4:56Speaker 01

  Okay, so they're coming in from different timelines? So some are monthly, some are quarterly, some are annually, just from different package testing?

• 5:03Alex Hormozi?

  Okay, so we're gonna probably talk about that in a second, the 40 clients thing, because I think you probably have a big revenue opportunity there. So what's the goal? What do you want to do?

• 5:12Speaker 01

  All right, so, yeah, just the easy 5 million revenue.

• 5:15Alex Hormozi?

  Why not?

• 5:15Speaker 01

  And really, I think what we can do is, because it's easy for me to get stylists, to train them, is to build like an education component.

• 5:23Alex Hormozi?

  Just like a totally different business.

• 5:25Speaker 01

  I know.

• 5:25Alex Hormozi?

  Yeah.

• 5:26Speaker 01

  But have stylists in major metros.

• 5:29Alex Hormozi?

  Okay.

• 5:30Speaker 01

  So, so have stylists in other metros, and then the long term is to be able to create a training program for them.

• 5:35Alex Hormozi?

  Like super long term? Like super, super long term?

• 5:39Speaker 01

  Super, super long term.

• 5:39Alex Hormozi?

  Like next lifetime? I'm just messing with you. But fundamentally, for this business, the goal is 5 million, doing what you currently do or a scaled up version of what you do.

• 5:50Speaker 01

  Yes.

• 5:50Alex Hormozi?

  Is that correct? Okay.

• 5:51Speaker 01

  And in other major metros.

• 5:52Alex Hormozi?

  Yeah, yeah, no, that's cool. That makes sense. What's the problem? What's getting in your way?

• 5:57Speaker 01

  Leads.

• 5:57Alex Hormozi?

  Okay.

• 5:58Speaker 01

  We need lead flow. We need more of them consistently, and we just, we need more at-bats.

• 6:04Alex Hormozi?

  Yeah.

• 6:04Speaker 01

  So that's, that's really what it is. And also, I haven't been able to be as consistent with content creation, and I think there's opportunity missed there.

• 6:12Alex Hormozi?

  Okay. All right, so show me the numbers.

• 6:14Speaker 01

  So 309 in total revenue, 130 in profit, 42% net margin, blended CAC of 600. LTV is 10K annually, so that gives us a 16 to 1 LTV to CAC ratio. 600 in marketing spend, show rates 100%, close rates 50.

• 6:33Alex Hormozi?

  Okay, got it. There you go.

• 6:35Speaker 01

  Okay, so Google, we're looking at 3,400 for the year for 2024. Cost per click $1.89, total clicks 1,800.

• 6:43Alex Hormozi?

  Do you know what words you're bidding for?

• 6:46Speaker 01

  Yeah, so like, personal stylist near me, Los Angeles personal stylist.

• 6:51Alex Hormozi?

  Do you have prices on the site? When they click, where they click, does it show your prices? Or is it just like an opt-in page?

• 6:56Speaker 01

  I do not show prices.

• 6:57Alex Hormozi?

  Okay, is it just like an opt-in page?

• 6:59Speaker 01

  It's just an opt-in page.

• 7:00Alex Hormozi?

  Do you know how many leads you get from this source? I know you get eight sales, right?

• 7:05Speaker 01

  Oh, how many leads?

• 7:06Alex Hormozi?

  Yeah, and I'll tell you why I'm asking. I'm asking because when I see 1,800 clicks, I'm like, that's a lot of clicks. So your cost per click is great.

• 7:12Speaker 01

  Yeah.

• 7:13Alex Hormozi?

  And so I'd be like, okay, and especially with intent-based search, rather than interruption-based marketing, like social media ads, it's like interruption-based, you're not looking for a stylist, you see an ad, then you click, versus like, I am looking for a stylist. Right. And intent-based click is usually much higher quality. I would be surprised if you were getting, I mean, unless there was a massive mismatch in terms of what you're asking people to opt in for, between 1,800 clicks, I would guess you're getting somewhere in the neighborhood of at least, you know, 250 to 500 opt-ins that would come. Does that sound, so 250, just for context, so divided by 12, should be looking at, what is that, 20 a month-ish?

• 7:50Speaker 01

  Okay.

• 7:51Alex Hormozi?

  Does that sound realistic, or does it sound like less than that?

• 7:52Speaker 01

  Well, so that right now...

• 7:53Alex Hormozi?

  That's leads.

• 7:54Speaker 01

  Yeah, the funnel is, it's just like book a call, and I think that that's...

• 7:57Alex Hormozi?

  So straight to book a call is the opt-in? Okay.

• 8:00Speaker 01

  So I think that that's...

• 8:01Alex Hormozi?

  Is there a video?

• 8:02Speaker 01

  That's being implemented right now.

• 8:04Alex Hormozi?

  Okay, okay.

• 8:05Speaker 01

  But I think that that's the big problem, is it's just like, hey, bye right now.

• 8:09Alex Hormozi?

  And you don't give them anything, right? There's no reason for them to opt in. "All right, we're gonna make you so much money." Yeah, the nice thing is like, yeah, it'll be fun. Okay, so despite like, basically, no incentive for someone to actually book a call, you're still making eight sales. And so I think that what's happening right now is like, the show-up rate and the close rates you have are, like, you're just basically skimming the absolute people who are like, are in such dire pain.

• 8:36Speaker 01

  Dire pain.

• 8:37Alex Hormozi?

  And you don't know them, because they're coming from ads, right?

• 8:39Speaker 01

  Right.

• 8:40Alex Hormozi?

  Right, like, if you're in that situation, then like, this may sound exciting for you, but like, you could probably 5 to 10x the sales of the business just by fixing this. Like, we do nothing else, and you could just do that.

• 8:50Speaker 01

  Just the phone.

• 8:51Alex Hormozi?

  So we'll get into that in a second, but okay. The good news is that even with the massive amount of inefficiency that's there, your LTVD CAC is still really strong. So, it's really good, and I think we're just losing, we're just leaking a lot in this process. Okay, show me the Thumbtack one.

• 9:05Speaker 01

  Okay, also people that are in pain right now because they know that they're searching for it.

• 9:09Alex Hormozi?

  Yeah.

• 9:09Speaker 01

  So 6K total spend.

• 9:11Alex Hormozi?

  So we got leads here, okay.

• 9:12Speaker 01

  58 leads, 38 bucks a lead, total sales 8, CAC 750, same LTV.

• 9:18Alex Hormozi?

  Okay.

• 9:19Speaker 01

  Thing is Thumbtack is like 90 to 95% unqualified in terms of purchasing power.

• 9:27Speaker 01

  So we were able to, you know, rank higher for SEO.

• 9:31Alex Hormozi?

  Okay.

• 9:31Speaker 01

  Through this page.

• 9:34Alex Hormozi?

  Through your Thumbtack page that you then pay extra to promote.

• 9:36Speaker 01

  Yeah.

• 9:37Alex Hormozi?

  On Thumbtack. Okay, cool. Got it. I mean, 38 bucks a lead is not bad, given the price point that you have.

• 9:42Speaker 01

  Right.

• 9:42Alex Hormozi?

  But the issue is that they are unqualified. And so the nice thing here is that it might just be changing the headline of whatever the page that you're promoting is.

• 9:54Alex Hormozi?

  And again, adding some qualifications to the lead form so that you can immediately see. So like underneath of this, as you get like, I'd say more advanced, there's total leads and then you'll have something called MQLs on SQL. So MQLs will be marketing qualified leads and then sales qualified leads.

• 10:08Speaker 01

  Okay.

• 10:09Alex Hormozi?

  And so an MQL is like, okay, in order for somebody to be an MQL, they must meet these requirements. So it's like, I got 158 opt-ins. Of the 158 opt-ins, 50 of them have an income above $100,000 a year or are, you know, a man with a corporate job. Like, we have to just figure out what the fewest.

• 10:26Speaker 01

  Basic benchmarks.

• 10:26Alex Hormozi?

  The fewest, yeah. And we'll, we'll, we'll cover that. So do you actually, do you have a minimum income requirement?

• 10:33Speaker 01

  So I would say for this new model, a million.

• 10:38Alex Hormozi?

  A year in income?

• 10:38Speaker 01

  Yeah.

• 10:39Alex Hormozi?

  Okay. So yeah, so this is definitely a top 1%, 21%.

• 10:43Speaker 01

  8,500 plus, what is, like, it's about 25K all in for the service. The other, the thing is they have to have money for the clothes as well.

• 10:50Alex Hormozi?

  Yeah.

• 10:51Speaker 01

  So you're looking at about a 40, 50K, well, let's just even say 25K a year spend in clothes. Average Joe Schmo cannot do that.

• 11:01Alex Hormozi?

  And then is there a specific like life event or something that happens that triggers people into like getting, getting into this buying cycle?

• 11:08Speaker 01

  Yeah, so it is typically a transition moment. I had a baby. My body has changed. None of my clothes fit.

• 11:15Alex Hormozi?

  That's for women.

• 11:16Speaker 01

  I got divorced, both men and women. Or I'm just, I'm getting, I want to start dating, period. My image doesn't match my status as a C-level person or even VP.

• 11:27Alex Hormozi?

  Yeah.

• 11:27Speaker 01

  So that, those are.

• 11:30Speaker 01

  Those are the typical triggers.

• 11:32Alex Hormozi?

  Okay, I feel triggered. No, you're good. Okay, so that's the ThumbDak data. Is that the last slide? Oh, there's a bonus. Is it for later?

• 11:41Speaker 01

  Any other numbers, questions?

• 11:44Alex Hormozi?

  Well, I have already a handful of ideas around what we can do. Tell me more about the affiliate side. Because I get both of these. I understand the referral side. I understand both of your paid acquisition parts. I think the continuity is lacking. We can work on that. I think if there's inefficiency in the ad funnel, we'll talk about that. But I think affiliates is kind of the last piece before we dive into figuring out what we're going to do.

• 12:11Speaker 01

  Okay, so affiliates, that's what you're asking. Basically, it's just like a lead pass-through. So they make the introduction and we offer a complimentary-style assessment to help them get their dating profiles ready. And it's really just a glorified sales call.

• 12:27Alex Hormozi?

  Okay.

• 12:28Speaker 01

  Yeah.

• 12:28Alex Hormozi?

  And so you have these. How many matchmakers do you have who refer you customers on a regular basis?

• 12:32Speaker 01

  So, combination of private social club and matchmakers. We have about six.

• 12:38Alex Hormozi?

  Okay, how did you find them?

• 12:41Speaker 01

  Googling them and reaching out to them.

• 12:42Alex Hormozi?

  But you reached out and did it that way? And what percentage do they send you?

• 12:47Speaker 01

  What's that?

• 12:48Alex Hormozi?

  What percentage of your businesses do those six affiliates send you?

• 12:52Speaker 01

  So, as of this year, it's about a third.

• 12:58Alex Hormozi?

  Interesting. Okay, cool.

• 13:01Speaker 01

  It's because it's like very aligned audiences.

• 13:04Alex Hormozi?

  They're literally already buying the types of services related to what you want.

• 13:08Speaker 01

  Yeah, pretty much.

• 13:09Alex Hormozi?

  Okay. Yeah, I feel like I'm pretty clear on what you said.

• 13:15Speaker 01

  Yeah, probably very simple for you.

• 13:17Alex Hormozi?

  No, no, it's good. This is great. So, you want to make five million, right? And we're at 300, so that's a 17x from where you're currently at, right? If we were to just triple and get to a million this year, would you be okay with that?

• 13:30Speaker 01

  Totally down.

• 13:30Alex Hormozi?

  Cool, because then going from a triple to a 5x from there is like a little bit, I think. Because the thing is, the business will usually change. There's something called the Chinese rule of three and 10, which fundamentally just means that siphons break when they triple. And so I like to think in triples in terms of, unless there's some massive order of magnitude change that we can do. But the things that we have right now... A handful of these are triples independently. First thing I want to talk about is going to be the avatar is getting clarity on who you are going to serve. Because right now you serve a lot of people, not to say that it's a bad thing, but I think over time we are going to get narrower. So that we can make our value proposition a little bit more compelling for them.

• 14:05Speaker 01

  Okay.

• 14:05Alex Hormozi?

  The next is going to be paid ads funnel, which we're going to look at the pages. And we're going to look at the offers so that we can say, okay, can we tweak something? We add a lead magnet here that would get the right people and ward off the bad ones. And is there kind of some process things that we can do that just will stop the leakage? The third piece is still acquisitions, it'll be affiliates that I want to cover. And then the fourth, what I want to hit on is continuity. And so those are the big four that I want to hit on. We can talk about the corporate thing that you mentioned in between. My initial gut reaction is not yet, but because the thing is, is like, if we can get to a million, probably, we could probably, given the things that I think that we're going to uncover here. You could probably get to like two-ish, two to three, just from some of the things I'm going to show you in a second.

• 14:45Speaker 01

  Okay.

• 14:46Alex Hormozi?

  Then maybe you get to there, you're at three, you might be like, wow, what if I just kept doing this?

• 14:50Speaker 01

  Yeah.

• 14:50Alex Hormozi?

  Rather than the other thing.

• 14:52Speaker 01

  Okay.

• 14:52Alex Hormozi?

  Okay, so avatar clarity. Do you have any idea if there are some customers that are like way better than others or that you enjoy working with more? Like, what's your dream customer? Who are the people who spend the most money with you that you help the most?

• 15:04Speaker 01

  Can I just like ramble off?

• 15:05Alex Hormozi?

  Yeah, sure.

• 15:06Speaker 01

  Who they are? Okay, so stay at home mom.

• 15:08Alex Hormozi?

  Okay.

• 15:09Speaker 01

  Frequent traveler, kids with many social events.

• 15:13Alex Hormozi?

  Mom, who has kids with many social events?

• 15:15Speaker 01

  Yeah.

• 15:16Alex Hormozi?

  Okay.

• 15:16Speaker 01

  Like, one daughter just got married.

• 15:19Alex Hormozi?

  Okay.

• 15:19Speaker 01

  Son is having a baby, that kind of thing.

• 15:21Alex Hormozi?

  So usually mom, so it's mom, right? So there's kids, obviously, because it's a mom. Okay, got it.

• 15:25Speaker 01

  There's a few of these women.

• 15:26Alex Hormozi?

  Plus money, got it.

• 15:28Speaker 01

  And they just want to have new outfits for all of their trips.

• 15:32Alex Hormozi?

  So like socialites.

• 15:33Speaker 01

  Socialites.

• 15:33Alex Hormozi?

  Okay, got it.

• 15:35Speaker 01

  But private, not public people.

• 15:37Alex Hormozi?

  Yeah, I understand. Okay, so mom socialites, is that the number one, your favorite avatar?

• 15:41Speaker 01

  And then men, CEOs.

• 15:45Alex Hormozi?

  Okay. By percentage of revenue, is it 50/50?

• 15:49Speaker 01

  Yeah.

• 15:49Alex Hormozi?

  It is, interesting, okay. CEO men, huh. Do you ever get cross-sells? CEO men gets wife. Wife starts or husband starts?

• 15:58Speaker 01

  Typically, wife starts.

• 16:00Alex Hormozi?

  Interesting, okay.

• 16:02Alex Hormozi?

  Got it.

• 16:03Speaker 01

  That's split.

• 16:04Alex Hormozi?

  Okay, okay, this is good. This is good for me to note for now. Okay. Now, paid ads funnel. First thing that we can do on this one is, and obviously this isn't, I mean, you could, okay, there's a lot of things here, but wherever you're driving your traffic to, so whether it's the homepage or it's this page, you should probably have some big lead magnet that people are gonna want. I would imagine that, what's something that somebody like that would want a lot?

• 16:29Speaker 01

  So that's been my thing after reading offers and thinking about a lead magnet. It's like, what appeals to these people? And they don't wanna sit there and like get a checklist of how to go through their closet themselves. So the only thing I could think of, and this isn't very scalable, is the complimentary style assessment. That's one-on-one with somebody.

• 16:46Alex Hormozi?

  And that's okay, though, because I mean, you're still getting them to, more of them to opt in. But right now, is the assessment the thing that they're booking on the Google Ads page today?

• 16:54Speaker 01

  It's just a call.

• 16:56Alex Hormozi?

  Okay, so.

• 16:57Speaker 01

  It's not being positioned as that.

• 16:59Alex Hormozi?

  Yeah, so like the 1.0 version is, style assessment is what you can basically promise them on the landing page. But I was thinking more something like, really tactical, like the perfect outfit for you, like one perfect outfit, or something to match their skin type, like, like your ideal colors, like that would be a cool one. Because like, that doesn't, you don't have to like, put a whole thing together. It's just like, oh, this skin tone, you know, there's like 10 tones, and you just pick the one that's appropriate for them?

• 17:29Speaker 01

  Yeah.

• 17:30Alex Hormozi?

  Okay, so.

• 17:31Speaker 01

  We, we're gonna, we were gonna do that next. And also, something else, we were gonna do the one perfect outfit, but it's so nuanced. But then we were thinking, okay, what if we just share with them, hey, here's how, like, what are some of the steps that they do to prepare to, if they were to work with us? How are they invested? So we're thinking, like, taking their measurements, having them do some of these steps, like creating a mood board themselves.

• 17:56Alex Hormozi?

  So we want them, so for a lead magnet to be really valuable, we want it to be risk-free, easy, and fast. And so those things require effort. And so we don't want the avatar to work to get the value. We want them to just click and get the value.

• 18:10Speaker 01

  Okay.

• 18:12Alex Hormozi?

  I think what we think about is like, I like, I think this is actually really interesting. This is just me, me personally. So maybe I'm a CEO man. But it's like, there are some, some skin tones that combination, basically it's like, you have a combination of hair and skin tone and eye color that is unique to you. And between all these different permutations, there's a hundred different variations people can have, and they have a different color palette that would be unique to them. Now, you'll know behind the scenes that there's probably like eight different, you know, color styles or whatever. I think either doing color, because that feels like the easiest, one degree more nuanced, and that would be a specific style. Being like, you know, streetwear, hip hop, like whatever, you know what I'm saying? Like, you know that better than me.

• 18:47Speaker 01

  Professional, casual.

• 18:48Alex Hormozi?

  Yeah, exactly. And so I think that this is like, you could do this tomorrow, you don't have to change anything, just by repositioning a lead magnet. But I think this one would be really attractive, especially if you, like, when you push them there, I would experiment with the different headlines there, and then we need to measure the conversion rate of the page. I know that you've turned them down. The interesting thing here is like, 1800 clicks, I think we could be able to get somewhere in the neighborhood of like, if we're doing this right, like 500 leads from that amount of spend.

• 19:14Speaker 01

  Oh.

• 19:14Alex Hormozi?

  And just to, literally, we just need to nail this. Because on a Google Ad intent, like, high intent search like this, you should be able to get like 30% of people to opt in. So from a benchmark perspective.

• 19:27Speaker 01

  To this.

• 19:28Alex Hormozi?

  To something that is right for this audience. So if someone's looking for personal stylists near me, or personal stylists LA, then it's like, what is the first piece? And like, I always think about like, our offer is, you've got all these steps that someone has to take. Can I peel off the first one? Even though it's something that I normally charge for, what's my actual cost? It's going to be time. Can I template some of these things out so that I can still provide a lot of value, but not have it take too much of my personal time? And the cool thing with these, like, kind of like more costly or unscalable lead magnets, is that you only have to give it to people who are qualified. So you are not obligated to, like, you can choose to do this only if someone meets these qualifications, and you just say that in the landing page.

• 20:07Speaker 01

  Okay.

• 20:07Alex Hormozi?

  So it's like, hey, if you're a mom with kids and a socialite, or you're a CEO guy and you're not getting what you want, then schedule one of our style assessments, where we'll go through personally your skin tone, your hair color, your eye color, and find the things that will immediately make you look better, just within your existing closet. Because that's like, again, they don't have to do anything, and they'll immediately look better. That's like, immediate value, not a lot of work.

• 20:28Speaker 01

  Okay.

• 20:29Alex Hormozi?

  So I'd be like, okay, that's what we're going to offer. So now I can get more people to apply. Now they're going to fill out their stuff. And again, if they're not qualified, then it's like, well, you didn't read the headline. So don't worry about it. So you don't feel like you're... And then for them, I would probably just send them some free things so they feel, you know, they still gave them something.

• 20:43Alex Hormozi?

  But that would be like the thing that I would do to improve the funnel right off the bat without really even seeing the funnel is a clear headline around what they're going to get. Subheadline is either an image of like, almost like a before and after of style, or some sort of image that shows, you know, white skin, brown hair, don't do this.

• 21:03Speaker 01

  Okay.

• 21:04Alex Hormozi?

  And then they're like, oh, shoot, I do that. And so just like a simple thing that they're like, shoot, I do that. And then they're like, oh, my God, I need help. And so all we're doing is increasing deprivation so that they take the next action. Okay.

• 21:14Speaker 01

  Okay.

• 21:14Alex Hormozi?

  So that would be the lead magnet component that I would do for these paid ads. Now, I think that you have the scheduler, so they apply, then they schedule, then what's the follow-up sequence?

• 21:27Alex Hormozi?

  Like, how do you, like?

• 21:28Speaker 01

  I, because they're so few, I just manually say, hey, and I try to like...

• 21:33Alex Hormozi?

  Do you reach out to them?

• 21:34Speaker 01

  Yeah.

• 21:34Alex Hormozi?

  But they self-schedule on the page, right?

• 21:37Speaker 01

  Well, that's if they apply for more information. If they schedule the call, then I send them, hey, here's our services.

• 21:44Alex Hormozi?

  Yeah.

• 21:44Speaker 01

  Looking forward to speaking with you.

• 21:46Alex Hormozi?

  Got it. So I know you're going to put the video together.

• 21:50Speaker 01

  Yeah.

• 21:51Alex Hormozi?

  There's the video before the call that gets them to book. And then I would probably consider sending them a second video between booking and showing.

• 21:59Speaker 01

  Okay.

• 21:59Alex Hormozi?

  And then that does a little bit of the pre-sale for you. And I think about this in terms of like, what are those things that you repeat on a regular basis on the call? So there's usually like, in every call, there's kind of like a little bit of a sales pitch that occurs where you're like, okay, so let me tell you about what we do. I just try to put as much of that before the call.

• 22:14Speaker 01

  Okay.

• 22:15Alex Hormozi?

  So that I can spend the majority of the call on the person, the decision-making process, rather than basically have this like pre-recorded script that I have to keep reading over it. Because it tires out you, tires out your sales team eventually. That's how I would, I would try to do it.

• 22:27Speaker 01

  Okay.

• 22:28Alex Hormozi?

  I think that if we can do the lead magnet, we can capture way more leads. I think if we add the video to the landing page, so.

• 22:34Speaker 01

  Do you think it makes sense to put the pricing?

• 22:36Alex Hormozi?

  No.

• 22:37Speaker 01

  On the page?

• 22:37Alex Hormozi?

  No, I don't think so. I think that if we ask for qualifications and we describe the services, that'll give us 80%. And then basically you just want to find. Because the thing is, is like, you don't want to disqual. Because there's some people who will be in, who have a smaller income, but really want this.

• 22:51Speaker 01

  Yeah.

• 22:51Alex Hormozi?

  And so it's finding kind of that sweet spot, which is like, if someone then says like, I want to start immediately, I'm super open, and their budget's like medium, then you probably take the call. Right? If they're like, my budget's zero, then like, okay, well, it doesn't matter how much you want it. It's not going to work.

• 23:03Speaker 01

  Right.

• 23:03Alex Hormozi?

  I think that on your qualification question, which you'll have on your scheduler, we just ask for the fewest amount of questions that are required for us to make the decision of whether or not they should stay or not. What would you? So the way I would think through this is that I'm going to have like 10 templates that I know that are color palettes that work for these 10, you know, characteristic people. And if I have asked their skin, hair, whatever upfront, then I know when I'm going into the call, which template I'm going to be using when I talk to them. So it's like, hey, oh, you're blah, blah, blah. Actually, you know what? I would describe you more as olive than white. And I think this might actually be a better thing for you. Cool, okay. And then you go into your normal sales process, which obviously works. I don't even want to talk about sales killer closing 50%.

• 23:39Speaker 01

  Okay.

• 23:40Alex Hormozi?

  Does that, does that make sense that I want to make sure?

• 23:41Speaker 01

  Well, I just want to make sure that like they, because right now it's like book a call, a sales call, basically. And that's like obvious what I'm speaking about. But then this feels like, oh, just have a call about.

• 23:54Alex Hormozi?

  Yeah.

• 23:54Speaker 01

  Skin tone.

• 23:55Alex Hormozi?

  Well, this is sales.

• 23:56Speaker 01

  Yeah. And then it's not an issue because they're already qualified.

• 24:01Alex Hormozi?

  You're only taking the calls of people who have the income.

• 24:03Speaker 01

  Right.

• 24:04Alex Hormozi?

  That make sense?

• 24:04Speaker 01

  Yeah.

• 24:05Alex Hormozi?

  So you're going to take more calls. You're also going to hear more no's, but you're going to make more money. Hey, guys, real quick. This podcast only grows from word of mouth, quite literally. There's no other way to grow a podcast than word of mouth. If there's some element of this that you think somebody else should hear or would be relevant to them, it would mean the world to me if you shared this via text, via Instagram, via DM, via whatever way you like to share stuff with the people you love. Thank you.

• 24:27Alex Hormozi?

  Like fundamentally, I could, I could just say like, I could run an ad that just said, "Hey, I have this really expensive thing, book here if you want it, and this is the price." And the people who hop on those calls will be incredibly qualified. But if I just said, "I have this really free amazing thing that'll help you with the first problem, let me help you with that." And then people are like, "Oh, but do you do any of..." "Ah, you know what, I do do that stuff, it's so funny you ask." And I get 10 times the calls. And so if I close 30% of a 10x number, I still close 3 times the deals.

• 24:55Speaker 01

  Okay.

• 24:55Alex Hormozi?

  Does that make sense?

• 24:56Speaker 01

  Yeah.

• 24:56Alex Hormozi?

  And so there's a little bit, now, part of it is because you're selling out of your own wallet in terms of time.

• 25:00Speaker 01

  Yeah.

• 25:00Alex Hormozi?

  And so it's because you're like, "I have my time and I understand that." But all we have to do is just tweak these things. If you have somebody who you have the information about them, you have the income.

• 25:08Speaker 01

  I mean, I could really just, and train somebody to just do it live.

• 25:12Alex Hormozi?

  As many things as possible you can do. Like, we want to decrease the friction here for qualified people.

• 25:17Speaker 01

  Right.

• 25:17Alex Hormozi?

  So, there's good friction and bad friction. So, good friction is something that increases the overall quality of lead and gets out people who suck. Bad friction gets everyone out. A slow page load time, for example.

• 25:30Speaker 01

  Right.

• 25:30Alex Hormozi?

  Everyone leaves, good people and bad people. We want to get the type of friction that only bad people leave and good people stay.

• 25:34Speaker 01

  Okay.

• 25:35Alex Hormozi?

  And so if we have budget authority need timing, we have the specific things relative to the lead magnet, then your follow-up, if you want, like, "Hey, if you can send me a picture, it'd be great." If not, I can just go off of your Facebook profile, something like that. Then they show up to the call, you have your one of templates that you already figured out ahead of time.

• 25:48Speaker 01

  Yep, yep, yep.

• 25:49Alex Hormozi?

  That then sets up the sale, which is for you, it's like, "Oh, you don't have this, this, this, and this." All we're doing is expanding the gap of like, "You're here, you want to be here." "Oh, you're missing all this stuff." "Oh, you know what, it's so funny, I think you'd be a perfect fit for what we have. Can I tell you about it?" And then you're in.

• 26:01Speaker 01

  Got it.

• 26:02Alex Hormozi?

  Does that make sense?

• 26:02Speaker 01

  Yeah.

• 26:02Alex Hormozi?

  Okay. So, this is what I would do to change the paid ads funnel. And I think this will probably apply for both Thumbtack and... Can you spend more on this?

• 26:12Speaker 01

  Yeah.

• 26:12Alex Hormozi?

  Well, I'm like, dude, if you, if I had a machine in front of me where you, and this is without you doing any of this. That's the crazy thing. That's without you doing any of this.

• 26:21Speaker 01

  Right.

• 26:21Alex Hormozi?

  So if I said, "Okay, instead of paying $3,400 a year, what if we paid like, $3,400 a month?"

• 26:29Speaker 01

  Yeah.

• 26:30Alex Hormozi?

  Well, that would 12 extra business, that'd be chill.

• 26:32Speaker 01

  Right.

• 26:32Alex Hormozi?

  Yeah. I mean, it beats the S&P 500 where you put a dollar in and get $23 back within the next week, it's not bad.

• 26:37Speaker 01

  Right.

• 26:38Alex Hormozi?

  So, the next thing that I want to go over is the affiliates, because I think that's really important.

• 26:42Speaker 01

  And you would not touch Facebook ads?

• 26:44Alex Hormozi?

  Well, you already have an acquisition channel that's working and super profitable, so I'm less likely to want to do that now.

• 26:48Speaker 01

  Okay.

• 26:49Alex Hormozi?

  So, because you can spend more if you wanted to. All right, let's talk about affiliates. So, matchmakers.

• 26:56Speaker 01

  Yes.

• 26:56Alex Hormozi?

  Okay, so you have six matchmakers right now.

• 26:59Speaker 01

  Uh, four matchmakers, two private clubs.

• 27:03Alex Hormozi?

  Okay, so I'll go...

• 27:05Speaker 01

  I mean, whatever. It doesn't matter.

• 27:07Alex Hormozi?

  Yeah, you're good. Okay. So you got six affiliates. How much time did it take you to get each of these affiliates?

• 27:13Speaker 01

  Not much time.

• 27:14Alex Hormozi?

  Okay, and each of these sends you people on a consistent basis?

• 27:17Speaker 01

  Yeah.

• 27:17Alex Hormozi?

  What was the process that you did to integrate with them?

• 27:20Speaker 01

  I met with the owner and explained...

• 27:23Alex Hormozi?

  So you did outreach to get them?

• 27:25Speaker 01

  Yep, manual outreach.

• 27:26Alex Hormozi?

  Okay, is it like phone calls, text, email, DMs?

• 27:28Speaker 01

  Email.

• 27:29Alex Hormozi?

  Okay.

• 27:30Speaker 01

  Manual outreach, um, explained that we can offer a complimentary service to their new clients.

• 27:35Alex Hormozi?

  Oh, cool.

• 27:36Speaker 01

  And, you know, that we could close them.

• 27:39Alex Hormozi?

  Love this. Almost like it's directly out of the affiliate section in the book.

• 27:44Speaker 01

  And that's it, and then they would...

• 27:45Alex Hormozi?

  And what percentage do you close of the people that you talk to?

• 27:47Speaker 01

  Um, that's been the hard part, is like, talking, getting them.

• 27:52Alex Hormozi?

  Okay, do you know how many outreach attempts you did to get to the six?

• 27:54Speaker 01

  Um, probably about forty.

• 27:58Alex Hormozi?

  Okay, and I wanna paint something for you, because I think it's gonna be interesting. Okay, so you sent forty emails and you were able to close six, right?

• 28:04Speaker 01

  Yeah.

• 28:05Alex Hormozi?

  Okay, now, how much money do those six, so it's a third of your revenue, right? So it's a hundred thousand dollars a year roughly. Okay, so think about this. So every one of these emails, you do twenty-five-hundred dollars. That feels like a pretty good turn.

• 28:18Speaker 01

  Yeah.

• 28:18Alex Hormozi?

  For sending emails, probably copy and paste.

• 28:20Speaker 01

  Right.

• 28:23Speaker 01

  Do more of them.

• 28:24Alex Hormozi?

  What, I have a wild idea. What if we sent four hundred emails?

• 28:29Speaker 01

  Yeah.

• 28:30Alex Hormozi?

  I don't even wanna mess with the affiliate process that you have right now.

• 28:33Speaker 01

  Yeah.

• 28:34Alex Hormozi?

  You reaching out manually is obviously effective. You sent out forty emails, so I'd be like, okay, how do I send? Like, and that, like, if you did that for four hours every day...

• 28:43Speaker 01

  Right.

• 28:44Alex Hormozi?

  That, I mean, you'd probably be able to send, even if you did them completely personalized, completely manual, the way that you probably did. You don't have to buy any software, like, you can just send the emails. You'd be able to do that in like, a week. Or two weeks, if you want to spread it out. It's like not a lot. So 14 days, what's 400 divided by 14? You know, we'll give you, we'll give you, we'll give you the weekends off. So it's 40 emails a day.

• 29:05Speaker 01

  40 emails.

• 29:06Alex Hormozi?

  I'll give it to you in a month, how about that? So we'll do 20 emails a day.

• 29:09Speaker 01

  20 emails a day.

• 29:10Alex Hormozi?

  That feels like, that's, that feels reasonable.

• 29:12Speaker 01

  Yeah.

• 29:12Alex Hormozi?

  Okay, cool, let's do that.

• 29:14Speaker 01

  Best place to like poll.

• 29:16Alex Hormozi?

  Data, good question.

• 29:18Speaker 01

  Cause I think it's, it's the matchmakers, but it's also could be executive coaches. Could be high-end fitness trainers.

• 29:27Alex Hormozi?

  Yeah.

• 29:27Speaker 01

  People going through a transformation, weight loss.

• 29:29Alex Hormozi?

  Yep, they need, they need, yeah, for sure. I would think about, I think you have these in segments, right? And so you've got high-end trainers, high-end PTs, you've got exec coach, you've got the dating people. You've got, I'll give you one, divorce attorneys. So that's four lists. Now, the thing is, is that you can actually find all of these. These ones you can find probably from Google. This you can find also from search and Instagram. And there's also like list brokers. So you just like Google list broker, whatever city. And then you can, usually they'll have this massive national list and then you can, we'll let it down to a localized area. Can you do any remote services?

• 30:08Speaker 01

  Yeah, we definitely say 50% up, like especially during COVID, we only work virtually. But I prefer.

• 30:16Alex Hormozi?

  You prefer virtual, that's fine, that's cool, okay. So this obviously makes money and doesn't require any financial risk.

• 30:24Speaker 01

  Yeah.

• 30:24Alex Hormozi?

  And is also a compounding way of acquiring customers. Because you did this work, think about this, you sent 40 emails one time. And then you got six people to send you business for good. Not bad. Now, what do you do to continue to reactivate them?

• 30:39Speaker 01

  Host events.

• 30:40Alex Hormozi?

  Okay, so you do, so you do events, okay. So for the affiliates?

• 30:43Speaker 01

  Yep.

• 30:43Alex Hormozi?

  Okay, cool.

• 30:45Speaker 01

  I mean, like especially for like the matchmakers, they're happy because their clients are getting made over. They get better pictures, therefore they get better matches. So.

• 30:55Alex Hormozi?

  I love that.

• 30:55Speaker 01

  Yeah.

• 30:56Alex Hormozi?

  Really good. So I think, do you do that like regularly, like it's on a calendar? Or it's just like, okay, good. Cause that's, it's obviously that's why, part of why it's working. So normally one of the things that, that falls off with affiliates is that they don't stay activated. They don't keep referring you. And so you have to like work them like customers, like it's another set of relationships. But if you can put them all together in an event on a regular cadence where like all of the dating coaches bring all of their people and they all look good and they all get to meet each other like that's value for everybody.

• 31:21Speaker 01

  It hasn't quite turned out like that.

• 31:23Alex Hormozi?

  Okay.

• 31:23Speaker 01

  But just like more one off.

• 31:25Alex Hormozi?

  Okay.

• 31:26Speaker 01

  Like hosting events with

• 31:27Alex Hormozi?

  Just one of them.

• 31:28Speaker 01

  Individual company.

• 31:28Alex Hormozi?

  Okay, well so that works.

• 31:30Speaker 01

  Yeah.

• 31:30Alex Hormozi?

  Yeah, and I think if you do like one or two of those a year or three of those a year, I think that's like more than enough to keep the

• 31:34Speaker 01

  Right.

• 31:35Alex Hormozi?

  活跃. And I would, I would try and figure out a way to put them in the same room. Just because I think you'd be like, I would be pitching on collaboration rather than competition. Which is just like, hey, you have single people, so do they. Maybe they

• 31:47Speaker 01

  That's true, actually.

• 31:48Alex Hormozi?

  Yeah, they're all single.

• 31:49Speaker 01

  Yeah.

• 31:49Alex Hormozi?

  They're all single and obviously looking to mingle and trying to look their best life, like. It'd also be desperation setting. But anyways, so that's, so that's the affiliate piece, okay. And so in terms of lists, I'll go list brokers and then I would sort, and then I'd sort social media and Google first. That'd be like my first thing. And then I would look at list brokers once I ran out of those.

• 32:05Speaker 01

  Okay.

• 32:06Alex Hormozi?

  But between like these four sources, you need to send 400 emails. It's not that bad. And then what's crazy is like if you send it and then they don't respond, you can send it again. Next one's continuity. So let's talk about that. Okay, so this is about increasing LTV. So you already have a pretty good LTV, but I have this feeling like there's something that we can do better. Okay, so right now, LTV is $10,000, right? So walk me through, so if someone comes in, so I come in, I'm CEO, $8,500. I pay you for my whole lookbook, et cetera.

• 32:36Speaker 01

  Transformation.

• 32:36Alex Hormozi?

  Yeah, okay. And so the delivery of that transformation is like a lookbook primarily and then like, walk me through it a little more.

• 32:42Speaker 01

  No, so this assessment, figuring out where we're gonna go with your style, your look, then going through your current closet.

• 32:49Alex Hormozi?

  Right.

• 32:49Speaker 01

  Getting rid of all the old stuff.

• 32:51Alex Hormozi?

  So you actually go to their house?

• 32:52Speaker 01

  Yes.

• 32:52Alex Hormozi?

  Okay.

• 32:53Speaker 01

  Get rid of all the old stuff.

• 32:54Alex Hormozi?

  Okay.

• 32:55Speaker 01

  Reorganize the closet so that it makes, it works for their life.

• 32:58Alex Hormozi?

  Okay, so closet tear down?

• 32:59Speaker 01

  Yep, and then we document. We do an inventory of everything in their closet. So that way when they text us or they say, hey, I went to Turks and Caicos. Hey, great, pull this, pull this, pull this. And we can give it to their housekeeper or whatever. Here's your packing list.

• 33:15Alex Hormozi?

  Okay.

• 33:15Speaker 01

  Then we get new outfits, new clothes. Right now our promise is about five to 10 new outfits.

• 33:21Alex Hormozi?

  Okay.

• 33:23Speaker 01

  We don't want to get the whole new wardrobe.

• 33:24Alex Hormozi?

  Right.

• 33:25Speaker 01

  But, you know, enough to like, okay, I'm excited. I feel good. And then that's when we make the determination, okay, does this make sense? Given your lifestyle, you travel all the time on a monthly level or a quarterly level?

• 33:38Alex Hormozi?

  Yeah, yeah, in terms of the continuity. I mean, well, do you have churn on the continuity? Do a lot of people, so people stay and they keep paying?

• 33:44Speaker 01

  If it's in front of these people, not the one-time people, these people, they don't.

• 33:48Alex Hormozi?

  What was the one-time thing?

• 33:50Speaker 01

  So it was priced at thirty-five-hundred.

• 33:52Alex Hormozi?

  Uh-huh, and you just did this, but then didn't have anything else?

• 33:54Speaker 01

  Yeah.

• 33:55Alex Hormozi?

  Okay.

• 33:55Speaker 01

  And it was, um, it could be all virtually.

• 33:57Alex Hormozi?

  Okay, got it.

• 33:58Speaker 01

  Or it could just be like a one-day shopping.

• 34:00Alex Hormozi?

  It's way better to do in person. It's a different relationship. Yeah, no, I like that. I'm a, I'm a, I'm a fan. Okay, so, and then the ongoing price point is what on the back end?

• 34:08Speaker 01

  Uh, two K per month.

• 34:10Alex Hormozi?

  Per month, right, it's two thousand.

• 34:11Speaker 01

  Or forty-five-hundred.

• 34:12Alex Hormozi?

  So LT, so eighty-five-hundred and then two thousand dollars per month, so, so we should be at? Now, I'm guessing that you have a lot of grandfathered people of those forty customers that are paying less than?

• 34:21Speaker 01

  Yeah.

• 34:22Alex Hormozi?

  Okay, what are they paying?

• 34:23Speaker 01

  Um, fifteen-hundred.

• 34:25Alex Hormozi?

  Per month?

• 34:27Speaker 01

  Yep.

• 34:27Alex Hormozi?

  Per week or per month?

• 34:28Speaker 01

  Month.

• 34:29Alex Hormozi?

  Okay, so it's like, wow.

• 34:31Speaker 01

  Some are on like fifteen-hundred quarterly.

• 34:33Alex Hormozi?

  Okay, got it, got it. I'm guessing the majority of them are fifteen-hundred quarterly.

• 34:37Speaker 01

  Yeah.

• 34:37Alex Hormozi?

  Okay, got it, because then it's five-hundred bucks a month.

• 34:39Speaker 01

  Because this just all transitioned in September.

• 34:41Alex Hormozi?

  Got it.

• 34:42Speaker 01

  We only have like two people currently on the new system.

• 34:44Alex Hormozi?

  Okay, so most people are fifteen-hundred dollars. So if you have, call it thirty-eight customers who are at, I'm just going to say in general, right? Five-hundred dollars per month, because it's fifteen-hundred per quarter. I'm just looking at revenue.

• 34:56Speaker 01

  Yep.

• 34:57Alex Hormozi?

  Okay, because this now makes sense with the revenue that you're getting. Okay.

• 35:00Speaker 01

  Right.

• 35:00Alex Hormozi?

  Cool. Um, so the vast majority of the money is actually in a recurring revenue base.

• 35:04Speaker 01

  Mm-hmm.

• 35:04Alex Hormozi?

  That's not bad, that's good.

• 35:06Speaker 01

  Yeah.

• 35:06Alex Hormozi?

  That's really good, and the churn's low, so all that stuff's good. I actually don't really want to mess with this that much, because you have a low churn. What's the percentage of people go from here to here?

• 35:13Speaker 01

  Um, now that I've just said, hey, we're only working with you on a reoccurring basis, it's, it's good.

• 35:19Alex Hormozi?

  Right.

• 35:20Speaker 01

  Um, the thing is, I'm almost wondering if I.

• 35:22Alex Hormozi?

  Did you say that?

• 35:23Speaker 01

  I'm almost wondering if we kill this and just do the quarterly, because. This seems to be not most people.

• 35:29Alex Hormozi?

  Okay.

• 35:30Speaker 01

  Do you think that it's better to simplify things or just still keep it?

• 35:33Alex Hormozi?

  No, I think you can have it. What happens is it serves as a price anchor.

• 35:36Speaker 01

  Okay.

• 35:37Alex Hormozi?

  So even if only 10% of people take it, it increases the people who take that one.

• 35:40Speaker 01

  Okay.

• 35:41Alex Hormozi?

  So I don't think it's actually a mistake that it's there.

• 35:43Speaker 01

  Okay.

• 35:43Alex Hormozi?

  Because if you're like, because they have the reaction I did, I'm like $6,000 a quarter. I'm like, Jesus, like, or just do 1,500. Like, oh, no, that works. I'll do the $1,500.

• 35:50Speaker 01

  No, no, no. It's 2K a month or 4,500 a quarter.

• 35:54Alex Hormozi?

  Uh, with this one?

• 35:55Speaker 01

  Yes.

• 35:56Alex Hormozi?

  Okay. So you're saying at the, at the new price point?

• 35:59Speaker 01

  Yes.

• 36:00Alex Hormozi?

  It's at this. Okay. But this is brand new and here you have all the retention that you have.

• 36:05Speaker 01

  For all people.

• 36:06Alex Hormozi?

  Yeah. Okay. But you haven't had any issue with sending people into that, into the $4,500 a quarter either?

• 36:12Speaker 01

  I mean, the few that we've had, no.

• 36:14Alex Hormozi?

  But it's the same take rate?

• 36:15Speaker 01

  Yeah.

• 36:15Alex Hormozi?

  Okay. Yeah. So I'm fine with quarterly billing.

• 36:17Speaker 01

  Okay.

• 36:17Alex Hormozi?

  So if you have monthly and quarterly, that's fine.

• 36:19Speaker 01

  Okay.

• 36:20Alex Hormozi?

  I'm good with that. Yeah. So if it's, if it's now 2K slash 4,500 per quarter.

• 36:26Speaker 01

  But even if like 90% opt into this versus this.

• 36:28Alex Hormozi?

  That's fine. Totally fine. Totally fine. That's great. No big deal. I feel comfortable with that, but I always let the market tell me. So like, I just keep edging up the price until people stop saying yes. And then I'm like, okay, that's all right. And then you kind of back down a little bit and you're like, that's my price. Now I know that for these, for these types of people, that's the number that they're willing to pay. Unless we change the avatar or the marketing or the messaging, that's going to attract these people and they're willing to say yes at that price.

• 36:51Speaker 01

  Okay.

• 36:51Alex Hormozi?

  Okay. So from continuity perspective, I don't think we change that because then we just changed it. So that stays the way it is. I think the $8,500, I know LTV is $10,000, but $8,500 for the teardown. And then you have the quarterly. And so this LTV that you have here is probably going to go up. It'll just keep going up over time.

• 37:05Speaker 01

  Right.

• 37:05Alex Hormozi?

  Okay, great. So, I mean, honestly, the, the actual business is strong. Okay? So you have good-ish margins, 42%, continuity has almost no churn. That's great. LTV hack's strong. And so the real leverage with this business is that we just need to do more. Now, you stopped spending money on ads. Why?

• 37:26Speaker 01

  Because we were adding the video and we were adding in the lead magnet.

• 37:28Alex Hormozi?

  You're fixing that stuff first and then, okay, cool. So this is what we're going to do. Video, sales letter, plus lead magnet, plus the BAC qualification. So budget authority and need timing. So that's number one. So once we fix that, that's a, that's a conversion mechanism. So then what I want you to do is increase your ad spend. And so currently you're spending 600, was it $300 a month?

• 37:46Speaker 01

  Yeah.

• 37:47Alex Hormozi?

  So why don't we just go to 600? How much, actually, let me ask the question. How many can you handle? Like how many more leads could you handle than you currently are?

• 37:54Speaker 01

  More.

• 37:54Alex Hormozi?

  Like how many more?

• 37:55Speaker 01

  Like that convert into new clients?

• 37:58Alex Hormozi?

  Yeah, well, like how many calls? Basically, it's a call thing.

• 38:00Speaker 01

  Oh, calls.

• 38:02Alex Hormozi?

  You're currently taking 12, right?

• 38:03Speaker 01

  Yeah, easily could double or triple that.

• 38:06Alex Hormozi?

  Okay, so let's go with 600 to 900 per month. Because sometimes the lead cost might go up a little bit, and that's okay. Just like, so basically, you might get a little bit less efficient, but that's fine. Because you're still, you have really strong LTV to CAC, so it's not a big deal. All right, number three is we need to send the 20 emails per day to affiliates. So this is a big three, and then I don't want to mess with the continuity. So we got eight sales this year, so it's like one, like a little bit less than one a month. Right? So I just wish I knew how many leads were coming from Google. I just really wish I knew that number. And those eight sales, were those just like phone calls and closes? So 16 calls created eight sales kind of thing?

• 38:45Speaker 01

  Yeah.

• 38:46Alex Hormozi?

  Okay.

• 38:46Speaker 01

  And they weren't from the ads, they were from search.

• 38:50Alex Hormozi?

  Got it, but then they clicked on your ad? All right, so you'll fix the funnel.

• 38:55Speaker 01

  Yep.

• 38:56Alex Hormozi?

  You have the attribution tracking in place. I think the funnel lift could very well, like this is going to sound wild. This could somewhere near a bit of like 2 to 5x the lead flow you have, just doing this. Especially with a good lead magnet. Now, the next piece is that each of your affiliates were a third of your revenue. And if we were to 10x that, then we would 10x 1/3, which would be a triple. And so the result of a, call it a 2x, a 2x, and a 3x would be a 12x, which would take us from 300K per year to 3.6 million. Joe?

• 39:28Speaker 01

  Yeah.

• 39:28Alex Hormozi?

  Okay, questions?

• 39:29Speaker 01

  Yes, one thing we didn't talk about is

• 39:33Alex Hormozi?

  Your team.

• 39:33Speaker 01

  Brand.

• 39:34Alex Hormozi?

  Okay.

• 39:35Speaker 01

  Well, content creation.

• 39:37Alex Hormozi?

  Okay.

• 39:37Speaker 01

  So I have, like, I only bring this up because Ed was mentioning like, I should consider transitioning the page from AC Styles to Ashley Capps.

• 39:48Alex Hormozi?

  Okay.

• 39:48Speaker 01

  And going more of the personal brand route. As for like the big top funnel.

• 39:53Alex Hormozi?

  I'm not against that.

• 39:54Speaker 01

  Or do you think that doesn't matter? I mean, it's not doing anything right now because I haven't invested into it, but I was planning on investing.

• 40:00Alex Hormozi?

  Like your Instagram and like all that stuff?

• 40:01Speaker 01

  Yeah.

• 40:02Alex Hormozi?

  Well, I see, I see your Instagram because yours is such a visual craft in terms of what you do. That it makes sense to post. Thing is, is like, these things just like will all immediately make you money. I think that that's absolutely a long-term plan. Think about it, this is like, this is like your paycheck. This stuff like, you do this, you'll immediately make more money.

• 40:19Speaker 01

  Right.

• 40:19Alex Hormozi?

  That is more like a 401K, like an investment plan. So it's like, I'm gonna put this money into this, and it's gonna take time to snowball.

• 40:26Speaker 01

  Right.

• 40:26Alex Hormozi?

  But over time, it'll eventually become so big that like, it'll be bigger than all this stuff. But you'll have to measure that in like, a couple of years, more than a couple of months. So, I'm all for it though, to be clear. Because what, what a lot of people don't know is that like, when you, when you spend this money, when you do these emails, the first thing they're gonna look at is your social media stuff. And so I see that as like more lead nurture. And so like, it's like the invisible hand that all of a sudden like, more people respond or emails. Like, one of the things I didn't realize, like when I, because we do app on for our own stuff too, for like, looking at deals and whatnot. Me having a personal brand just increased the response rate. People were like, "Oh, I've seen your stuff."

• 40:59Speaker 01

  Right.

• 40:59Alex Hormozi?

  Or they take a look and like, "Oh, I've never heard of you, but this stuff looks really interesting. Yeah, I'll hop on a call, whatever." And so, that's kind of like, it's a, it's a rising tide that lifts everything.

• 41:08Speaker 01

  Yeah.

• 41:08Alex Hormozi?

  In terms of how a brand works.

• 41:09Speaker 01

  Right.

• 41:10Alex Hormozi?

  But yeah, I think there's, it's totally fine to do that. I just don't want you to get obsessed with it. I want you to just make sure that you spend, just basically block, I'd call it a half, half a day a week.

• 41:18Speaker 01

  Yeah.

• 41:18Alex Hormozi?

  That you're like, "I'm just gonna do content this morning, plan out my week, get the pieces that I want out, and then like, the rest of the week, you gotta run the business."

• 41:24Speaker 01

  Run and focus on this.

• 41:25Alex Hormozi?

  Yep.

• 41:26Speaker 01

  Now, the only reason why I was like nervous to transition it from actually focusing on personal brand versus business brand is because, you know, I was running into issue in the beginning of like, "Oh, well, I'm not gonna be working with you, I'm working with somebody else."

• 41:39Alex Hormozi?

  Yeah.

• 41:40Speaker 01

  So that's the only reason why?

• 41:42Alex Hormozi?

  I mean, that's not a big deal. That's like a one line overcome. So like, if you go to Wells Fargo, you're not expecting Wells Fargo or JP Morgan, you're not expecting JP Morgan. You go to Bain, McKinsey, BCG, well, BCG's Boston Consulting. But like, many professional firms, look at every law firm, Kurtz, Kurtz and Wild or whatever. Like, they, it's not uncommon for a business to be named after its founder and have many people underneath of it.

• 42:04Speaker 01

  Okay.

• 42:05Alex Hormozi?

  So like, I wouldn't like, Tyson, like, there's just like, so many brands are built off of the name of the founder, and it doesn't necessarily mean that you have to work with them. If anything, all it does is just allows you to have a premium on yours.

• 42:16Speaker 01

  Right.

• 42:16Alex Hormozi?

  If you want to. So it's more like, you can price here, and then if someone's like, "Well, I wanna work with Juice." Like, "Oh, I'm, I'm premium, I only have, I have a few private clients that I take on, and the people who have super money will just pay whatever, and then you can just add a zero to your price tag and make that yours."

• 42:32Speaker 01

  Okay.

• 42:32Alex Hormozi?

  Makes sense?

• 42:33Speaker 01

  Yeah.

• 42:34Alex Hormozi?

  But yeah, I think if you go AC versus, actually Caps, I'm not.

• 42:38Speaker 01

  You don't feel...

• 42:39Alex Hormozi?

  I'm OK either way. I'm OK either way. I mean, AC, people already probably know if it's actually caps. That's probably what it stands for. You probably have the same issue now with AC. Then you... Like, I don't think the name change is going to change anything.

• 42:50Speaker 01

  OK.

• 42:50Alex Hormozi?

  Yeah. But I do think branding personally is a good idea.

• 42:53Speaker 01

  OK.