Building a $3,000,000 Business for a Stranger in 57 Mins | Cash Cows | Ep 841

Wanna 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?

  This is Ben. He's a cocktail consultant who helps restaurants and bars optimize their drink menus to increase profits. But his revenue is unstable. Sometimes he has a great month and then other times he sells nothing and sometimes that goes down. I'm Alex Mosi. I own acquisition.com or portfolio of companies that generate hundreds of millions of dollars per year in revenue. What I suspect Ben needs to work on is optimizing his funnel, fixing his offer. He's trying to sell a $30,000 thing to strangers who have never even worked with him before, which is pretty tough. And then once all that stuff's fixed, spending more on his actual marketing. So the first thing I'm going to do is dive deep into the business and then I'm going to break down all the tactics that he and you can use to scale your business to your dreams.

• 0:36Speaker 01

  Hey Alex, I'm Ben.

• 0:38Alex Hormozi?

  Hello.

• 0:38Speaker 01

  One of the co-founders of Unfiltered Hospitality, where we help hospitality operators build better beverage programs.

• 0:44Alex Hormozi?

  Tell me about the business.

• 0:45Speaker 01

  So we are bar and beverage program development specialists. In 2024, we did 1.1 million in revenue, 123,000 in net profit, so about 11.3% in net margins. We've been in business for about four and a half years, but we've helped over 200 bars launch or elevate their concepts.

• 1:04Alex Hormozi?

  So what's the goal? What do you want to do?

• 1:05Speaker 01

  My goal, 3 million by the end of 2025.

• 1:09Alex Hormozi?

  Big goals.

• 1:09Speaker 01

  It's big goals.

• 1:10Alex Hormozi?

  Yeah, triple this year? All right.

• 1:11Speaker 01

  Yeah, triple this year.

• 1:12Alex Hormozi?

  Rock and roll. So how do you get started?

• 1:14Speaker 01

  In 2008, I started my life in the world as an investment banker.

• 1:18Alex Hormozi?

  Okay.

• 1:19Speaker 01

  And so I hated it, quit my job there. Over the next seven years, I worked in bars and restaurants around the city. A few years after that, I opened my first bar. It was all going really well until 2020.

• 1:29Alex Hormozi?

  Okay.

• 1:29Speaker 01

  We all remember.

• 1:30Alex Hormozi?

  What happened then?

• 1:30Speaker 01

  It was just like this small pandemic. It's over now, so we're good.

• 1:34Alex Hormozi?

  That's good.

• 1:35Speaker 01

  Yeah. Fortunately, I got approached by a restaurant that was still operational and they said, we need new cocktails. I said, great, I'm very good at that. So I tapped my business partner Guy and so we started Unfiltered Hospitality.

• 1:47Alex Hormozi?

  All right.

• 1:47Speaker 01

  Yeah.

• 1:48Alex Hormozi?

  So who do you help?

• 1:49Speaker 01

  We currently work with restaurants, hotels, bars, country clubs, cruise ships, nightclubs. If they have a bar, we help them.

• 1:57Alex Hormozi?

  How do you help them?

• 1:57Speaker 01

  We help them by taking their bar programs from good to great. Phase one, which we call better cocktail consulting, takes 90 days. We design a cocktail menu for them, we train their teams, and then Then we install an operating system to keep it all running smoothly.

• 2:13Alex Hormozi?

  Phase one is Better Cocktail Consulting. Phase two?

• 2:15Speaker 01

  Phase two is what we call the Program Performance Retainer.

• 2:18Alex Hormozi?

  Okay.

• 2:19Speaker 01

  So the point of this is to maintain what we did with Better Cocktail Consulting, and then continue to develop the program. And we do that by having a weekly KPI call where we check the scorecard to see how well your metrics are doing. We also then provide seasonal, monthly seasonal cocktails. We want to maintain the training, so we have a quarterly training program where we fly out there and we

• 2:40Alex Hormozi?

  Significant.

• 2:41Speaker 01

  Train the team for two days.

• 2:42Alex Hormozi?

  So you don't mind flying. That's good, because I have an idea for you. So I have an inkling that Ben needs to go upmarket. Restaurants that make over a certain amount of money, they're gonna think about like a business, not just like their passion project. Passion project business owners are kind of tough to deal with. When you come from a business perspective, they're not willing to make like sometimes really obvious, clear, good business decisions for whatever limiting belief they have. Okay, so that's how you help them. How do you make money?

• 3:04Speaker 01

  Great. Our core offer, which is what most people buy from us, is Better Cocktail Consulting. We charge $30,000 for that, and again, that's just the development and implementation. And what we love to do is upsell everybody, or at least have them initially buy the Better Beverage Program, which is what we call Better Cocktail Consulting plus multiple program performance retainers.

• 3:24Alex Hormozi?

  Okay. What percent do people go from the core offer to the upsell?

• 3:27Speaker 01

  Less than, less than 20%.

• 3:28Alex Hormozi?

  Ding ding ding. So my little alarm went off. When I hear, you know, barely 20%, that's an indication for me that there's probably an offer issue on the backend, maybe even the frontend, or a combination of the both of how they work together. So what's the main problem? What's holding you back?

• 3:41Speaker 01

  We need more better base.

• 3:43Alex Hormozi?

  Extra day.

• 3:44Speaker 01

  Yeah, yeah. Long time ago.

• 3:45Alex Hormozi?

  Yeah.

• 3:46Speaker 01

  Higher quality, higher quantity, more consistency, because it's like too much, too much variability, lower cost. Right, so the lack of consistency really feels awful. I don't know what next month is gonna be. Is it gonna be a good month or a bad month? The good months are pretty good, but I can't really fully enjoy them because the bad months are so awful. Because the way that we're doing sales now is we will go for days, sometimes weeks, without any leads at all. And finally, when we do get a lead, we'll get them on the phone, we'll have the calls, we'll pitch them, they'll get excited, we'll get excited, and we get to the end, we present the price, and Deal is dead. So if you can imagine that massive drought followed by a huge disappointment, I'm really looking forward to getting rid of that.

• 4:31Speaker 01

  A $12,000 CAC is crazy, especially considering the LTV.

• 4:35Alex Hormozi?

  Ding ding ding. Number two, we have a super expensive cost to acquire our customer, and this is a customer that should probably be 1,500 bucks, 2,500 bucks, maybe $3,500 to acquire. So there's definitely an offer mismatch between what is being advertised and what they're selling if CAC is so high, or they just have atrocious sales processes. So it's either an offer, sales process issue, or both, and we're gonna figure it out.

• 4:57Speaker 01

  What we've noticed is that our best clients are existing restaurants.

• 5:01Alex Hormozi?

  Yeah.

• 5:02Speaker 01

  And so we're considering refining our targeting down to just serving restaurants that are currently operational, making $4 million a year or more in revenue.

• 5:11Alex Hormozi?

  What could you sell for like 8,000 to 10,000?

• 5:15Speaker 01

  Something that we've tried in the past and could easily bring it back is essentially a DIY, like we'll teach you how to do it.

• 5:22Speaker 01

  The uptake on that is what I would assume lower. People will have a hard time like doing things if they're already not doing things.

• 5:28Alex Hormozi?

  I would think, is there a different thing that could be sold that was still in that price point that wasn't DIY? I mean, basically, I wouldn't position it as DIY. I would just be like, we're not gonna fly out. The good news is I think this is super fixable. Let's do the quick recap of all the numbers you got so far.

• 5:42Speaker 01

  2024 revenue, 1.1 million. Profit, 123,000. CAC, 11,800, very high. LTV to CAC of 1.7 to 1. Marketing spend without salaries is $10,000 a month. Close rate, 66.

• 5:58Alex Hormozi?

  So come here real quick, check this out. This is the $100 million scaling roadmap. Ben is at stage four, prioritize. And let me know if this sounds familiar. He's saying yes to anyone who would pay. He's got all these different types of avatars. He's getting way too many unqualified leads. But he's getting people who are clicking, he's getting people opting in, but they're not the right types of people. Here's his next problem. The result of all this stuff is that he's got to specialize his product. He's got to make better free stuff and have better creative to boost the volume and add qualifications and friction. Sounding familiar? And so the thing is, is that as much as it always feels like this unknown journey when you're a business owner, businesses behave. In patterns, we broke out after studying our portfolio of companies, seeing where they got stuck and how we broke through and put it in 10 stages.

• 6:41Alex Hormozi?

  If you're curious about where you're at, this is absolutely free. Just go to acquisition.com forward slash roadmap, plug in your business information and our automation thingy will tell you what stage you're at and what you need to do to get to the next level. So it's absolutely free. Go check that out. And if you want our team to like double check the work and make sure that it's the right one and give you more tactics around it, you can hop on a call on the next page and we'd love to help you out. The nice thing is that like, I feel very confident that your business will, will, will grow because there's some really obvious holes. I think I honestly have what I need. Why don't you come on this side and then we'll probably, we'll power through it together. Does that work?

• 7:14Speaker 01

  Yeah, it sounds great.

• 7:15Alex Hormozi?

  All right.

• 7:15Speaker 01

  But before we get started, would you mind if I made you a cocktail?

• 7:18Alex Hormozi?

  Ah, all right. I'll be saucy for our, for our.

• 7:22Speaker 01

  Don't worry, Alex. I took care of that. We actually have a non.

• 7:26Alex Hormozi?

  Grand slam offer.

• 7:28Speaker 01

  Cocktail, uh, which is really fantastic, very refreshing, really great for making sure that, uh, you, we, we both stay sharp and focused during the rest of our time together. But it's a delicious cocktail. As you noticed, the grand slam offer, I took a page out of your book, literally. Consists of a few great ingredients that are really going to help us stay like on task. So we have grapefruit juice, fresh grapefruit juice, squeezed it myself this morning. A ginger mint cordial to give it a little spice and a little herb, herbaceousness. And then we have our pineapple kombucha. I know way more people's drinks than their actual names.

• 8:11Speaker 01

  Grand slam offer.

• 8:11Alex Hormozi?

  High.

• 8:12Speaker 01

  Might have to bring it over.

• 8:13Alex Hormozi?

  Yeah, by all means. It's done. Thank you. Oh, I'll get that. I got full experience. There we go. Thank you. Cheers.

• 8:20Speaker 01

  Cheers.

• 8:23Alex Hormozi?

  Oh, it's great.

• 8:24Speaker 01

  Awesome.

• 8:25Alex Hormozi?

  I can definitely see how the kombucha would take off the edge of the, of, uh, like it could hide a, a spirit really easily with that.

• 8:30Speaker 01

  Oh, yeah.

• 8:31Alex Hormozi?

  Okay. So there's a lot of things. So I think that we need to actually talk about the offer, which is something that I don't always get the opportunity to talk about. But I think that you have a clear offer issue. I think we need to talk about avatar. That'll be as it relates to the offer. Number three, and this is going to be a big one, is going to be the funnel. There's a lot of stuff that like a lot of missing things there that I think we can like really quickly fix. And then sales, and then finally, maybe, uh, ascension.

• 8:56Alex Hormozi?

  And so that's kind of the big overarching theme. So, right off the bat, I think that you have an offer issue. So either that means that we're getting the wrong avatars on the phone, or we're getting the right avatars on the phone, and we're offering the wrong thing. So, I would say $30,000 is super expensive for just a straight, literally just a straight call funnel. Very tough.

• 9:15Speaker 01

  So when Alex said I had an offer problem, I had a strong feeling he was right. Because four and a half years into the business, if we're struggling the way we're struggling, there's gotta be something broken. And if Alex says it's the offer, it's a good chance it's the offer.

• 9:31Alex Hormozi?

  For what you're looking at, CAC for a small business or a restaurant, I would imagine should probably be in the neighborhood of $1,500, $2,500. That's where, that's like, if you were up at $300, $3,500, I'd be like, "Okay, fine," but it's gonna be in that kind of range. And so I think there's a, you can probably cut it by at least two-thirds compared to the, you know, $12,000 or whatever that you're spending right now. Because I think there's a lot of opportunity from that perspective.

• 9:54Speaker 01

  God.

• 9:55Alex Hormozi?

  There's so much stuff. Like, I'm just trying to think, okay, why don't we just start tip of the spear? And let's open up the ads, since that's the one that we can control the most. So, right off the bat, we need to have clear callouts. So, we need to be talking about what avatar are we really looking for? So, struggling to get the most out of your cocktail program, I don't know if that's necessarily even the language that would matter. I also wouldn't restate my name one for Infiltrated Hospitality, because we already have it above there. So it's like, it's some of the most valuable advertising in real estate. And so I would probably have something to the degree of like, "Restaurant owners, asterisk, asterisk." You know what I mean? And then like, second line, like, is your, like, are you doing over, you know, X million dollars per year? Or it could just be $4 million plus per year restaurant owners is callout number one.

• 10:39Alex Hormozi?

  And then the question would be "pain-based hook." All right, so check this out. So, I'm on page 136 of the Leads book. The first part I'm talking about here is the callout. So we have to get the right people to notice the ad, and it is by far the most important. And so I'm trying to compress the things that he's looking for in his ideal avatar into just one line. So they're like, "Oh, I'm a $4 million plus per year restaurant owner or bar owner." Just put it there, and then like, "This is for me." And once I do that, 80% of the work of advertising Actually done, as crazy as that sounds. What I'm getting into further after that is, okay, let's see if we can ask a yes question or an if then statement, or talk about some ridiculous result. All of these things are kind of the line after actually calling out the prospect, right? Now, once we get a little further into the copy, I like using the what who when framework.

• 11:24Alex Hormozi?

  So this takes the value equation, which I talk about in my first book, this guy, and tries to like explode this into many different copy variations. And so what we want to talk about is both the dream stuff, which is what's the good outcome? How do we make it fast? How to make it likely? How to make it easy? And then on the flip side, the pain, which is what's your nightmare scenario? And so this gives you a lot of different angles to approach the copy for a customer, whether it's a B to C customer or a B to B business owner. And the reason I'm such a big proponent of pain in advertising is, one, is it's super compliant. Two, I have the belief that the more precisely you can articulate the pain of a prospect to that prospect and even describe it more accurately to themselves than they can articulate it,

• 12:08Alex Hormozi?

  they will believe that you can help them almost better than any promise that you can make them. So if you're like, hey, did Sally say this yesterday? Did you have this problem that showed up? And are you consistently running out of your most expensive ingredients? But then sometimes they go bad. All of a sudden, like, God, this guy knows exactly where I'm at. And now I'm far more likely to take the next step. Has cocktails been less than 10% of your revenue year over year? Something like that, right? Or, because I know you said in the messaging, they're not as receptive to like profit money related stuff.

• 12:40Speaker 01

  There are, there are avatars that do like profit, but a lot of them like recognition.

• 12:44Alex Hormozi?

  Being cool, yeah.

• 12:45Speaker 01

  And being cool, right? Yeah, they want to be cool and they want to be like popular, like they want to biblic them off.

• 12:49Alex Hormozi?

  So people have different histories of reinforcement, meaning they've had good things that happened in the past from different things that they've done. And so if somebody did really well in school, they like, you know, getting As and maybe the, the score matters more for them. Other people, it's like they like the applause. Other people, it's like they like showing up and having people flock to them. Like everyone has different drivers. We want to describe what it's like, the experience of success in as many varied ways as possible to attract the most varied avatars, as long as they meet our requisites. Like, is your?

• 13:24Alex Hormozi?

  Cocktail program flaccid would probably do great. Yeah. Has no one ever posted anything good about your cocktails in the last two years? If you look at your reviews on Yelp, have you just have Long Island iced teas and vodka sodas? Like, you might need a, insert, you know, a bar rehaul. Instead of saying, because what this is is super feature heavy. Dana-driven menus, designed to get more orders, team training that delivers, because all that sounds like work. Yeah. For me. Sure. And so what I want is what occurs as a result, right? And so I'd be talking more about like, Kloncy typically 10x their investment in the first year, 30% increase in menu orders. I'm not sure if it like bites at me, you know what I mean? And so it would be more like what the experience is like. From people just ordering the things that they know off the top of their mind,

• 14:06Alex Hormozi?

  to getting excited when they open up your menu and then all of a sudden saying, oh man, I want to try so many of these. And then ordering two or three times more. So it's like dial into the experience of what the avatar is going to go through. Right. And then I would translate it, okay, what about the restaurant owner? Having, you know, your restaurant featured in some of these types of magazines, which honestly doesn't take as long as you'd think as soon as you make these types of changes. Sure. You know, what a lot of restaurant owners don't know is that one of the largest profit drivers in the business is alcohol. And it's the one thing that they're the least focused on. Right. If you want, you can book a call, but even if you don't, what I did was I took the, you know, the top 10 worst drinks to serve. And I'll show you how to replace them with the top, with 10 drinks that are better than that, that work for just about any bar. Now, on the thank you page, so you can download that on the next page, but on the thank you page,

• 14:50Alex Hormozi?

  if you want us to personalize it to your bar concept, we'll show you how to organize the bar so you can get way more drinks served. You can do it with higher margins and you don't have to train people for nearly as long because if you set it up the right way. If that's interesting, book a call on the next page, right? And so that would be more or less my ad, right? At least my ad structure. And so the, the big thing number one is that, A, is that we need better ads. Yep. So that's going to be both the copy, so we want callouts to avatar. We want to have pain-based hooks. We want to be more benefit. Versus feature-driven, B, we want to bang in lead magnet. What we want to do ideally with a lead magnet is demonstrate authority and expertise with something that they didn't know that they should know.

• 15:30Speaker 01

  Right.

• 15:31Alex Hormozi?

  Because either you reveal a problem, you give a sample of a solution,

• 15:33Speaker 01

  Yeah.

• 15:34Alex Hormozi?

  or you give a one-step of a multi-step process. Those are the three types of lead magnets you can get. So check this out real quick. So this is a perfect example of an offer and lead magnet mismatch. So kind of what I was saying in the beginning, like, we're honing in here and I'm pretty sure this is the problem. So what I explain here, this is page 30 of the Leads book, he's trying to do this. He's trying to go from low trust, straight to a sale, right? And in that scenario, he might sell a couple people, which he is. But instead, what I'm trying to get him to do is put some sort of valuable lead magnet first, which goes getting people from low trust to high trust. And then that increases the number of people to be more likely to buy from him after demonstrating value. This is probably the, like, first big jump that we're going to do in the business that I think is going to have a huge impact on the growth.

• 16:17Alex Hormozi?

  And what I was referencing for him is under lead magnets, there's always a continuous problem-solution cycle. And so the three types of lead magnets are, just like I named, real problem, have a free trial, or one-step of a multi-step process. It's almost like I wrote the book on this shit.

• 16:33Speaker 01

  Like, I think that's the right direction because I think it being cocktail-focused, because right now, we've been working on a lead magnet that's profit-focused.

• 16:40Alex Hormozi?

  Okay.

• 16:41Speaker 01

  And it's straightforward. I mean, essentially, it's a tool that they use in Excel and they pull up a PMX, they put in their top 10 sellers, the quantity is the price.

• 16:49Alex Hormozi?

  Yeah.

• 16:50Speaker 01

  They make a 50 cent dollar, $2 adjustment.

• 16:54Alex Hormozi?

  I like that.

• 16:54Speaker 01

  And $50,000 in profit.

• 16:56Alex Hormozi?

  Yeah.

• 16:57Speaker 01

  Magic, you know? That's great for the profit-driven avatar.

• 17:00Alex Hormozi?

  Yeah.

• 17:01Speaker 01

  And so I don't know if there's a way to, like, kind of stack lead magnets.

• 17:04Alex Hormozi?

  So I wouldn't stack them. I would just test one versus two.

• 17:07Speaker 01

  Got it.

• 17:08Alex Hormozi?

  So if we were to just test 97 versus 47, you might think, okay, well, maybe, you know, just from the front end, $97 in the test that we've run. Actually, it converted almost the exact same amount, but it was twice the money. So that was a good idea. But where the real money was, was the fact that people who bought this were way more likely to spend money. Now, for me to answer why? No idea. Just know that. And so this is why we test all the way through. TV, not just which one gets more opt-ins or which one gets more sales in terms of volume upfront. You might find though, is that maybe the cost, and this is why it's important to track all the way to the sale. Is that you might find that the profit-driven one is cost three times as much to get the lead. But you close more sales.

• 17:43Speaker 01

  Sure.

• 17:43Alex Hormozi?

  And I'm going to show, I'm going to break down some more funnel stuff in a second because I'll show you how we need to reorganize yours. But I would just run that as an ABA. So if you're going to run some ads, we're like, hey, so you'll do the same exact intro.

• 17:53Speaker 01

  Yep.

• 17:54Alex Hormozi?

  And then the transition will be like, and if you want the top 10 drinks that you shouldn't be serving that actually hurt bars and their profitability, download my thing and I'll show you 10 different ways of making them that are more profitable and faster.

• 18:03Speaker 01

  Got it.

• 18:04Alex Hormozi?

  And then the other one is like, and if you want to see how much revenue you could potentially be missing out on. I have a tool that we use internally that I'll just give you for free. You can plug in your numbers and then it'll spit out exactly what the opportunity is. And if you're like, you know what, I'm not really a big Excel guy, that's fine. On the, on the thank you page, schedule call, we'll walk you through it, specific to your bar right now.

• 18:22Speaker 01

  Right.

• 18:22Alex Hormozi?

  Right. So I think both those work and I would just split test that. Like, I don't know the answer to that question, they will, but lead magnet for sure is one of the things that's missing from these ads. And also probably why you're not getting the conversion you need to on the, on the landing page. So why don't you click, so we're going to swap this ad out for an ad that talks about the lead magnet, has a pain-based hook and kind of mirrors some of the copy that just went through. Okay, go for it. Okay. So, right off the bat, that like the, the most expensive real estate on this page is top to bottom.

• 18:51Speaker 01

  Yep.

• 18:51Alex Hormozi?

  Right. And so you having your logo at the top, nix it. Doesn't matter. No one knows who you are yet. They're coming from cold ads and like, this isn't the branding opportunity.

• 18:58Speaker 01

  Got it.

• 18:59Alex Hormozi?

  So yeah, this is drug response. So better bar program, I would take that out because they don't know what they're opting in for yet. And that doesn't mean anything. Launch an elite, high-profit bar. I would split test the hell out of that. It might be become the hottest bar in your town.

• 19:13Speaker 01

  Okay. Just try out a few different.

• 19:15Alex Hormozi?

  Yeah, no, a hundred percent. And then beautiful cocktails, professional team and seamless operations. I would nix that. So I would want the sub-headline to be basically the single largest concern someone has about the promise of the headline.

• 19:26Speaker 01

  Got it.

• 19:26Alex Hormozi?

  So here's this amazing thing. And here's that thing that you're thinking about now that you don't believe me in. So let me tell you why you should believe me in the next line.

• 19:33Speaker 01

  Right, like the reason your cocktails suck is because like.

• 19:36Alex Hormozi?

  Yeah, I mean, it could be like worse than without, right? So launch an elite, you know, high profit bar without having to redesign your existing location, without buying expensive ingredients that go bad, or having a really expensive training process.

• 19:51Speaker 01

  Sure.

• 19:52Alex Hormozi?

  I don't, this is just me thinking if I were a bartender. So here, there's a lot of pieces to this, and I don't think you need any of them because I've already gone through your funnel. I would basically drop this to just, I'll tell you why. So I'm okay with all of these if, basically you collect this information twice in this funnel. I don't know, have you gone through it?

• 20:10Speaker 01

  I built it.

• 20:10Alex Hormozi?

  Okay, so let's go through it. Let's just go, you know, A, A, A, just put whatever in. Okay. A at AOL dot com. So that was me.

• 20:18Speaker 01

  Yeah, okay.

• 20:22Speaker 01

  My, uh, my director of ops was freaking out. She's like, is that you guys?

• 20:26Alex Hormozi?

  She's like, we got it, we got a lead. We got a hot one. So let's say we click here. Now just click whatever time. All right. So now I gotta put it all in again.

• 20:34Speaker 01

  Right.

• 20:34Alex Hormozi?

  I'm like, God, this sucks. So this is a really classic business owner mistake, which is that a lot of business owners haven't even gone through their own sales process. They set it up two years ago and they haven't like gone through it. You would be amazed at how many times you change a couple of things and then you go through it again and you're like, God, this looks horrible. Except you're like running traffic to it and this is what customers are seeing. And I like, I'm guilty of this too, so I'm not saying I'm immune to it. And so having some regular cadence of actually going through clicking the buttons, because this is obviously a ton of friction and this is bad friction. Good friction is you add qualifications, you make sure the right people are coming in, the bad people are going out. But this friction of just having people like repeat opting in for stuff or like very slow load times, that's bad friction that gets both good and bad people to stop opting in. So fundamentally, marketing comes down to having the sweet spot on friction.

• 21:17Alex Hormozi?

  Because if I were to advertise, hey, here's my phone number and his is how much it is, call me to buy, that would have the least amount of friction in the process possible. But the issue is I'd probably get a ton of people to call, or maybe not, and it's just like, it's too fast. On the flip side, if you make people jump through 30 hoops, you might have a perfectly qualified. Customer, but you're missing out on 90% of the people who would have bought if you just made it a little bit less frictiony. And so it's all about the sweet spot between both extremes. And in general, the more expensive the product or service, the more friction you'll generally need to add. And so my little moniker for this is the bigger the plane, the longer the runway in order to get it to take off. Okay, so now that we're back here. So first off, this needs to not be on YouTube. So you need to get somebody because otherwise it looks, it looks hokey.

• 22:01Alex Hormozi?

  Get it on any third party, get it on Vimeo, whatever. Yeah, you don't want other recommending. It's just like it's taking people off the site and I don't think it looks good.

• 22:08Speaker 01

  Right.

• 22:08Alex Hormozi?

  Whatever. This is what your new funnel is. So you're going to have, hopefully this looks like a book.

• 22:13Speaker 01

  Yeah, okay.

• 22:14Alex Hormozi?

  And then we have your email. We've got our headline, sub-headline, and then we've got our image, right? So then that's then going to go here, which you have, uh, congrats. And then we'll have our main, our secondary headline. Now here's where we put the video. Above, above the scheduler.

• 22:34Speaker 01

  Okay.

• 22:34Alex Hormozi?

  And then the scheduler is going to be here. So this will be VSL. Then they'll have the booking and then post-booking will have a separate thing here, which will one have the VSL and the lead magnet. So it's just like that way they can go to their email to get it, but they also can click here to get it. Just makes it convenient for them. But what we have here though, is basically how to prepare for your call and just more selling.

• 22:59Speaker 01

  Yeah.

• 22:59Alex Hormozi?

  I'm a huge advocate of having videos or kind of sales materials prior to a human intervention. And the reason for that is if you've ever done sales on a consistent basis, you end up kind of repeating the same presentation, if you will, over and over and over again. And so then it starts to sound rehearsed, the other person zones out, you zone out because you've said it so many times. I like taking all of the stuff that you kind of repeat over and over again in a sale and front-loading that. And so when you're on the call or when you start the call, you can start it like, okay, how's everything sound? And now we can basically start from the beginning to making a decision, rather than like, just like another pre-recorded, you know, vomit of a salesperson. And the other benefit of a video is that there's a lot more visuals, right? Like if you're talking on the phone, you're talking on Zoom, you'll be limited in the amount of visuals you can probably provide.

• 23:44Alex Hormozi?

  Whereas here you might be able to provide charts. And graphs and statistics and visuals that make it more compelling and easier for somebody to understand. I would rather have the perfect pitch delivered every time in an automated format. And then when the have the customization be what the conversation is after the fact to get them to decide to buy or not. This is the new funnel.

• 24:00Speaker 01

  Right.

• 24:00Alex Hormozi?

  This is what we advertise.

• 24:01Speaker 01

  And just real quick, this is after they schedule VSL again. This is the VSL again.

• 24:07Alex Hormozi?

  It's just a different one, but yeah.

• 24:08Speaker 01

  It's a different one, but more like prep for sales.

• 24:10Alex Hormozi?

  So think about this, think about all the things that people present with on the call early that are their biggest concerns.

• 24:15Speaker 01

  Okay.

• 24:16Alex Hormozi?

  That's what you put there.

• 24:17Speaker 01

  Okay.

• 24:18Alex Hormozi?

  So you might be wondering this, you might be wondering this, so let me, let me put your minds at rest. So these are the things you need. You don't need this, you do need this. If you're concerned about these four things, I'll break them down one at a time. So first things first and then walk through it. And I'll be on, so if you have a computer, it's going to be a Zoom call or expect it from this number, whatever.

• 24:34Speaker 01

  So call prep concerns and this VSL, this was like more about like.

• 24:39Alex Hormozi?

  Pain and promise.

• 24:41Speaker 01

  Got it.

• 24:41Alex Hormozi?

  Yeah. If we honestly, like if we just do this, you're probably going to like significantly increase your sales. And we do it like I feel like we could probably do nothing else today and like that's all that has to be done, right? Is that the ads need to go to the right avatar.

• 24:53Speaker 01

  Yep.

• 24:54Alex Hormozi?

  Which is called out, we're actually going to give them a reason to go to this page that they can immediately get value from. They're going to opt in, then we have our, now if you want to do more of the, you want to add more of the information that you were collecting over here? You can, that's fine with me, as long as it's fully integrated.

• 25:11Speaker 01

  Yep.

• 25:11Alex Hormozi?

  Into here, so that they don't have to do it twice. If you want, you can put a little on this side, like in like a black banner across the top of this.

• 25:19Speaker 01

  Yep.

• 25:20Alex Hormozi?

  That has, you know, for $4 million plus only.

• 25:23Speaker 01

  Yep, got it.

• 25:25Alex Hormozi?

  This is, this is a big, a big part of this, of what we were talking about earlier. Sit back, brain juice for a second.

• 25:32Alex Hormozi?

  I'm going to spill it, so I got a lot of stuff in here.

• 25:38Alex Hormozi?

  Okay, so you're confident about the $4 million avatar. Is there any reason that $2 and $3 million avatars don't work?

• 25:43Speaker 01

  They do. They just, they're gonna be a harder sell because their ROI isn't as

• 25:48Alex Hormozi?

  So then let's get to the offer part because this, this like, because this is, this is the, this is the funnel and process. But now let's talk about the offers that we're selling here.

• 25:56Speaker 01

  Yep.

• 25:56Alex Hormozi?

  All right, so let's put this, because now this is gonna go to the phone. This is a phone for everyone who is born before, sorry, after, after 1995. So these are the offers, okay? So Ben has a clear offer problem. I wrote my entire first book on this issue because it's one of the most common problems that limits businesses. And the offer is a strategic thing that you do in that it affects the entire business. If you change your offer, it changes the advertising, it changes the conversion process, it changes your pricing, it changes your deliverables. So it changes everything. But because of that, if you nail the offer, that's where you can have these massive upticks in growth seemingly overnight. And so I'll just read this little piece for you.

• 26:39Alex Hormozi?

  No offer, no business, no life. Bad offer, negative profit, no business, miserable life. Decent offer, no profit, stagnating business, stagnating life. I would say he's right now between two and three. Good offer, some profit, okay business, okay life. And then what we want to build is a grand slam offer, fantastic profit, insane business and freedom. That's what we want to get to. So let's break this out. So I think that that offer, straight off the bat, selling $30,000 upfront, really tough sale.

• 27:06Speaker 01

  Totally.

• 27:07Alex Hormozi?

  It very, very hard sell. So I like that he's charging premium prices for premium services. That makes sense. The problem is how he's selling it and when he's selling it. The right offer at the wrong time is still the wrong offer. That's the problem he has. And so this $30,000 thing absolutely should be, and maybe we need to change that, maybe that should be a $60,000 or $90,000 thing. But selling it right off the bat is kind of like, he's getting people who've never met him before to just get on a call and then just try and buy. Rather than try and go for that, I'd rather go for a much easier sale that with that first product or service, we can give them the information so that now our entire business is about upselling customers into our $30,000, $60,000, $90,000 thing, rather than spending six phone calls to close somebody on a $30,000 thing and having people drop off at each of those steps.

• 27:52Alex Hormozi?

  This is how I, if I owned your business.

• 27:54Speaker 01

  Mm-hmm.

• 27:55Alex Hormozi?

  I would have my front end thing be like five or six grand.

• 27:58Speaker 01

  Okay.

• 27:58Alex Hormozi?

  I would have it solve one very specific problem very well that more than, you know, gives them a 50K ROI on a $5,000 thing. But it's built in purposefully just to get the quick sale, transition from prospect to customer, one call close, not three call closes, which I'm sure you're having to do right now, just to close. Right, yeah, your arm wrestling people get 30 grand. We're missing the point of even having this simple sales funnel.

• 28:21Speaker 01

  Mm-hmm.

• 28:22Alex Hormozi?

  And so, get the 5K.

• 28:23Speaker 01

  Yeah.

• 28:24Alex Hormozi?

  Do the three calls you were gonna do as a sale anyways.

• 28:26Speaker 01

  Yeah.

• 28:27Alex Hormozi?

  Provide value for those three, and then at the end, sell your 30K thing.

• 28:31Speaker 01

  Got it. So I think that the changes that Alex recommended for the funnel make a ton of sense. I'm not a professional funnel designer. I've really only been doing paid ads for the last year. And listening to somebody who's got as much vast experience like Alex tell me exactly what I need to do is super helpful. And I know that I could probably figure it out over many, many years, painful processes. But ultimately, having this path to create a funnel that works is gonna make me feel a lot better.

• 29:01Alex Hormozi?

  So what can we split off that's like five or six grand?

• 29:05Speaker 01

  Mm-hmm.

• 29:05Alex Hormozi?

  That would be immediately valuable to them, that doesn't require a huge amount of work, but they could just like, they could use your calculator, they could make these changes, and immediately see like a return? That would then create the necessity for your main thing?

• 29:19Speaker 01

  Yeah, I would say that the pricing thing is massive.

• 29:21Alex Hormozi?

  Okay.

• 29:22Speaker 01

  Another thing would be like just very basic sales training for their teams. Like, they need, they need a script.

• 29:28Alex Hormozi?

  Mm-hmm.

• 29:29Speaker 01

  Like, they're bartenders and servers. If you don't have a script for your sales team, like, you have no idea. And the way you look at that is very straightforward. How many drinks per person are you selling?

• 29:36Alex Hormozi?

  Yeah.

• 29:37Speaker 01

  Right? You know, number of guests, you know how many drinks you're selling, you know, drinks per guest.

• 29:40Alex Hormozi?

  Yeah.

• 29:40Speaker 01

  Boom. That's like a pretty easy metric to like, how to like grasp on to.

• 29:44Alex Hormozi?

  Which of those is easier for you to deliver on?

• 29:47Speaker 01

  The pricing is massively easy because they just have to change their

• 29:49Alex Hormozi?

  Then I would, then I would, I would go pricing on it first.

• 29:53Speaker 01

  Yeah.

• 29:53Alex Hormozi?

  Because also there's immediate value in that what I would do is like, let's back calculate how much more profit you would have made last year if you had these prices.

• 29:59Speaker 01

  Yeah.

• 30:00Alex Hormozi?

  And then they're like, holy shit, I would have made a hundred grand. And you're like, cool. So pretty good return on the five.

• 30:03Speaker 01

  Yeah.

• 30:04Alex Hormozi?

  Great. If you like that, you're gonna love what I have for you next, which is how do we actually make sure this happens consistently quarter over quarter? This is actually what we do with our, you know, with our premier, our premier customers.

• 30:13Speaker 01

  Right.

• 30:13Alex Hormozi?

  It's too cold of a sale right now.

• 30:15Speaker 01

  Yeah.

• 30:16Alex Hormozi?

  So either we have to have a much longer sales process or we lower the bar so we can just get them in the door and then we can upsell.

• 30:22Speaker 01

  Right. And, and the profit booster, which is what we call it, is like, you think that that is going to be meaty enough for them? Obviously.

• 30:30Alex Hormozi?

  It's 5K. We're not selling 30.

• 30:33Speaker 01

  It's 5.

• 30:34Alex Hormozi?

  It's like, dude, if we just fix this one thing on more than, I know what your market looks like. I like, we have comps in the area. We can tell you what this market can sustain. And that way, the question is, what's it worth to get it right on the first shot? So like, for sure, I could say, hey, just bump your price about 10%, but you'd probably freak out about that. Of course you would, and rightfully so. So what we're gonna do is remix a couple of the things, get the prices appropriate to your area that we already know are working. So you don't have to, you don't have to sweat about it.

• 30:58Speaker 01

  Right.

• 30:59Alex Hormozi?

  Done. So it's like, the only real cost to you is reprinting your fucking menus.

• 31:01Speaker 01

  Right. And then the next step is like, do you want to raise your prices again, but sooner? Well, you need a better quality product, better trained bartenders, et cetera. And I feel like that could help them kind of understand that they will have that opportunity to do it again sooner because they already got the bump.

• 31:16Alex Hormozi?

  And the reason I want this one is because this is fast and easy.

• 31:19Speaker 01

  Yeah.

• 31:20Alex Hormozi?

  Which I like selling those things first.

• 31:21Speaker 01

  Sure.

• 31:22Alex Hormozi?

  You have to do this in order to do this. So you might as well sell this first.

• 31:24Speaker 01

  Okay.

• 31:25Alex Hormozi?

  And the fact that it's easy and fast and profitable, like that checks all the boxes for fast, easy, risk free. There you go.

• 31:31Speaker 01

  Got it.

• 31:32Alex Hormozi?

  I think we make this 5,800 on the phone for the pricing booster, whatever you want to call it.

• 31:36Speaker 01

  Yep.

• 31:37Alex Hormozi?

  And then what we do is that then leads to the quarterly retainer at, I think you had 9K per quarter, right? And that's probably high pricing.

• 31:46Speaker 01

  So Alex's idea about the $5,800 offer really makes a lot of sense. What he was explaining, that trying to sell somebody a $30,000 service, cold.

• 31:58Alex Hormozi?

  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.

• 32:15Speaker 01

  Isn't working. There was a little bit of an aha moment, but actually it makes a ton of sense. So I'm excited to try to find an opportunity to give our clients or prospects that will become our clients exceptional value right off the bat. Well, one, make it a lot easier to go to the next step and also give us a lot of quick wins so that we're not constantly putting in all this work to get nothing.

• 32:38Alex Hormozi?

  Trying to think about the easiest way to do this. I would probably end up doing a roll over upsell. So we're selling step one of a multi-step process. That's what this is. And I would seed that upfront. So when you sell the thing, it's like, listen, I'll be real with you. My whole goal is to give you this pricing. I'm just going to easily ROI myself and like, everybody will be happy. What I really want to do is help you really transform the bar. Because you can only do a pricing change once. And then after that, what do you do, right? But even if we make this pricing change, great, we made an extra hundred grand. But wouldn't it be cool to make an extra million? Now, I'm not promising that because obviously your results will vary. It depends on your market. But what I can do is basically walk you through what it takes to truly build this into a staple that then also drives people into the food side. So it becomes a virtuous cycle. And so what I want to do is take your 5,800 and I'll credit towards the

• 33:23Alex Hormozi?

  So if you're wondering, should every business have a backend and a frontend or multiple offers? The answer is it depends. And I know that's a terrible answer, but I'll tell you what it depends on. There's a certain amount of information that is required for somebody to make a decision. Depending on where they come in on that continuum of needing a little bit of information versus needing a lot of information, then there has to be more selling that must occur. Then the next constraint that comes up in the business is cash flow. Well, if we're spending money to get these people in, we want to recruit that cash as fast as we can. And for somebody to buy maybe a hundred thousand dollar thing, it takes more time and more information to make that decision. And during that time, we're spending all this money in labor and advertising, but we're not seeing any return. The idea of sometimes having a frontend and backend offer is mostly just to pull cash forward, offset the cash outlay,

• 34:06Alex Hormozi?

  which is another way of saying decrease the payback period or increase the cash conversion cycle. Lots of fancy words, but basically just get money back faster. So that then everything after that's all gravy. You recruit the money and now you go get another customer. And then this person's all in the incension process. For example, his advertising was all brand-based and all inbound. Then he could probably get away with just going straight to a more expensive thing because they've already consumed so much information prior to that. But since he's almost entirely based on cold traffic ads, we have to lower the bar to get people to just take that small jump so that he can then prove himself to then take the big jump.

• 34:42Speaker 01

  Seen that before.

• 34:43Alex Hormozi?

  Yeah, because it works. And so, and you do it, but it's like you only get that if you do that during the two to four weeks that we have.

• 34:49Speaker 01

  Right.

• 34:50Alex Hormozi?

  So that's the, that's the time window we can apply it towards.

• 34:52Speaker 01

  Right.

• 34:53Alex Hormozi?

  Right, and if you want, I'll apply it to your first payment. So, you know, the, the nine K becomes four K for your first quarter. And then you go into nine K after that. Or, if you want, one of my personal favorites is just knock off fifteen hundred per quarter. So, make this ten five, or, you know, ten K per quarter, but if you do it now, it's eighty five hundred.

• 35:11Speaker 01

  Got it.

• 35:12Alex Hormozi?

  And we're knocking out, that way we, we spread the discount over four quarters. I gave Ben two different ways of applying the discount. I prefer spreading discounts because I don't want an easy yes, and then go from four K to nine K, and then them say, oh, actually, I'll just get the quarter and then I'll cancel. I'd rather spread the discount out and get the commitment over the long term. And so if someone's willing to pay the eighty five hundred, they're like, okay, well, that was nice of him to credit the, the fifty eight hundred or six thousand dollars towards my payment. So it's like a nice gesture and encourages people to take action, but it's not so much so that it's, it's getting the wrong type of customer in because the price is going to double. That way you're not, you know, crushing your first, your first payment.

• 35:44Speaker 01

  Sure. And the nine K per quarter, which is what we're doing that is continuity on the Better Cocktail Consulting thing. So, how do we?

• 35:53Alex Hormozi?

  How sticky is that? How sticky is it? How, are people re-upping?

• 35:57Speaker 01

  The actual design and implementation of their cocktail menus?

• 36:00Alex Hormozi?

  Are people churning out of this?

• 36:02Speaker 01

  Uh, they, yes. Like, basically, anybody who buys it as part of the initial package, they don't continue on with it. Like, they stop after two quarters. I have my suspicions on why that's happening.

• 36:13Alex Hormozi?

  Okay, why?

• 36:13Speaker 01

  Uh, we are not showing them the value. We're not, we're not demonstrating it in a meaningful way. Like, we're supposed to fill out a scorecard, we're supposed to show them week over week how much better their program's doing. We're not.

• 36:23Alex Hormozi?

  You're not doing it?

• 36:24Speaker 01

  That, well, I have like.

• 36:25Alex Hormozi?

  Well, yeah, the team, sure, yeah. So there's a little warning alarm that's going off for me right now, which is that if people are churning out in two quarters, basically two payments, that's not a good sign. You know, he nailed it, he's not providing value. That's a kind of amorphous, amorphous big term, but underneath of that, it's like, the question is why? One of the difficult parts with consulting or education is that if you're what I would consider a quote, a one-trick pony, I'm not saying Ben is, but if you are, then, once you've kind of like implemented your thing, it's like, why should someone keep paying you? I like to figure out ways that we can have some sort of consumables or something that is always changing the business that is required for you to keep providing value. One of the benefits of a bar or restaurant is that they're always getting new staff in. And so new staff needs to get trained up consistently. Now, the downside is if they learn how you train,

• 37:09Alex Hormozi?

  then they'll just say, well, I'll just train them myself and not pay you this money. We have to figure out a way to make the backend stickier or just accept that it's not and then charge an appropriate amount of money for it so that you deliver that value, you have a good margin, and you just understand that that's the nature of the business. And the good news is there's a gazillion restaurants and bars, and so you'll be able to do that for a very long time. Well, some people try to create recurring revenue for recurring revenue's sake, but some products and services are not really meant to be recurring. There's a reason that after four years of education in college, you graduate. After high school, you move to the next thing. Like, education in general tends to graduate people. They learned, and because they learned, they no longer, you know, should continue. Now, how does the education system deal with this? They just give you more and more majors, and you can become a master, and you can have a PhD,

• 37:54Alex Hormozi?

  and you can have a double secret PhD, right? They'll just always give you something else. It's more common in an education and consulting business like his, but the businesses that are most valuable, obviously, are businesses that once someone comes in, they never want to leave or stop paying. But it doesn't mean that you can't make a ton of money in businesses that you do just one-time services on. So I don't think there's anything wrong with that. There's just less enterprise value. Why are they doing it?

• 38:13Speaker 01

  I think there's a little bit of resistance to just kind of numbers in general.

• 38:17Alex Hormozi?

  From them?

• 38:17Speaker 01

  From them. I co-designed that component of it for them to do.

• 38:21Alex Hormozi?

  Is there a way that you can just get a login to their system and then collect it?

• 38:25Speaker 01

  Definitely.

• 38:25Alex Hormozi?

  I'll bet you, if you logged into their system and once a month they had a meeting with you where you showed them their numbers,

• 38:32Speaker 01

  Yeah.

• 38:32Alex Hormozi?

  it would almost feel like, I have, like, this guy knows all my stuff. I have to, you know what I mean? And so I think that would be worth the extra time cost, maybe it's two hours per account or whatever it cares. Right. That, to me, feels worth improving. Because if you don't, if you can't fix churn, there's no point in doing anything else.

• 38:47Speaker 01

  Right.

• 38:48Alex Hormozi?

  Because otherwise you just have people falling out the back. It's like, we have to start with people staying, and then we can fix all the front-end stuff. Because why would we pour more water in the key bucket?

• 38:54Speaker 01

  Right.

• 38:54Alex Hormozi?

  So how does this process feel overall?

• 38:57Speaker 01

  It feels great. I mean, it's in line with the direction I wanted to go in. It's just obviously laid out much more clearly and...

• 39:05Speaker 01

  Using a system that you know works.

• 39:07Alex Hormozi?

  Okay, good.

• 39:08Speaker 01

  As an entrepreneur, you try to figure out a lot of things on your own. You can do it a lot of ways. You can do it by doing the research, trying things out, or working with people who have been there and done it before. With Alex, not only has he been there and done it before, he's been there, done it incredibly well multiple times for businesses in tons of different industries. And so when he says that something's going to work, I believe it. The sales training is like the intermediary. Is that kind of what you're recommending here? Because in my head, the offer component starts with the pricing part because that's the easy win, right? That would then move into the cocktail consultant, the better cocktail, the $30,000 offer. And then that would move into the $9,000 a quarter.

• 39:54Alex Hormozi?

  Any reason not to push them into continuity?

• 39:56Speaker 01

  Because they probably still have shitty cocktails. I could make that just, I could just say, we'll start, we'll just do our program and we'll just, we'll do it in the first 20 months. It'll be the first quarter, we'll be promoting. That's fine, as long as we can maintain the continuity.

• 40:11Alex Hormozi?

  Yeah, there's an offer structure that I like a lot called the waive fee offer. So basically, I could say, listen, this thing I charge $30,000 for.

• 40:20Speaker 01

  Yep.

• 40:21Alex Hormozi?

  If you commit for the year,

• 40:22Speaker 01

  Yep.

• 40:23Alex Hormozi?

  I'll waive it.

• 40:23Speaker 01

  Yep.

• 40:24Alex Hormozi?

  But you're committing for it. Now, if you want to cancel two quarters in, you have to pay me this.

• 40:28Speaker 01

  Yep, got it.

• 40:29Alex Hormozi?

  So it's like, I'll eat the cost. If I take the risk on, you make the commitment. That's the risk you take.

• 40:33Speaker 01

  Yep.

• 40:34Alex Hormozi?

  And I'll front you all this work.

• 40:35Speaker 01

  Mm-hmm.

• 40:36Alex Hormozi?

  If you take the risk, actually, you want to have the, you don't want the commitment?

• 40:40Speaker 01

  Mm-hmm.

• 40:40Alex Hormozi?

  Then pay for that, I'll do it. And then it's month, it's quarter to quarter.

• 40:44Speaker 01

  Yep.

• 40:44Alex Hormozi?

  Which one would you prefer?

• 40:45Speaker 01

  Got it.

• 40:46Alex Hormozi?

  But now it's an A B close.

• 40:48Speaker 01

  Right.

• 40:48Alex Hormozi?

  Does that help?

• 40:49Speaker 01

  Yep.

• 40:49Alex Hormozi?

  Okay. I'm going to talk about a session in a second, but I think, I think big picture, we have funnel redo.

• 40:55Speaker 01

  Yep.

• 40:56Alex Hormozi?

  So we got that going. Number two is add callouts. Three is we have new lead magnet. Four, we have, so inside of funnel redo, we have three-step and then Vimeo, video above scheduler.

• 41:11Speaker 01

  Yep.

• 41:12Alex Hormozi?

  And then we have integrate scheduler with Optin. All right, let's pull this page up again real quick. So I'm going to design this as though it were the second page because the first page is really simple. It shows headline, sub-headline, image, Optin, that's it.

• 41:25Speaker 01

  Got it.

• 41:25Alex Hormozi?

  All right, so basically, the first half here. You could peel off and make that the first page, but you'll have a picture of the thing that you're going for.

• 41:32Speaker 01

  Right.

• 41:33Alex Hormozi?

  And you're going to remove the top two. You know, you remove your logo, you're going to remove better bar program. Take that out. Beautiful cocktails is going to be the, without X, Y, and Z that you're, you know, your biggest concerns. Now let's scroll down. All right, cocktails to capture, how they train bar teams, functional product. I would think about it like this, like create drinks that create regulars. Get staff that customers can't wait to come back to and tip like crazy. You know, parentheses.

• 41:58Speaker 01

  Sure.

• 41:59Alex Hormozi?

  And then functional operating processes.

• 42:01Speaker 01

  That's like all about headache reduction.

• 42:02Alex Hormozi?

  Yeah, I want to think like functional operating processes. The way to, when I think about when I write a copy.

• 42:07Speaker 01

  Yeah.

• 42:08Alex Hormozi?

  Is where are the moments? So if I have functional operating process, what's the moment for me as a restaurant owner or a bar owner that I would experience the benefit of functional operating processes? Is it when I realized that I didn't have to throw out all this inventory that I like, all these old pineapples that I thought I was going to need and then toss out? Like, what's the moment or moments?

• 42:28Speaker 01

  It's kind of one of those things like when you notice the pain isn't there anymore. Right? Like, that's a hard thing to kind of put your finger.

• 42:34Alex Hormozi?

  Well, then tell me what the pain is. The pain works fine.

• 42:36Speaker 01

  Like, the pain that they typically have with dysfunctional operating processes.

• 42:40Alex Hormozi?

  Give me a moment.

• 42:41Speaker 01

  Is like when they walk in, the bar is a total mess because nobody knows how to set it up.

• 42:44Alex Hormozi?

  Like, no more disaster back, bar back, or back of bar.

• 42:48Speaker 01

  Yeah.

• 42:49Alex Hormozi?

  But like, it's just like, you can, you can do the negative or the relief of the positive. Okay, now let's scroll up. Okay, a lot of consistent proven results. I would say like, we drive quarter over quarter alcohol sales growth. Cause that's what, that's what, to me, proven results doesn't mean anything as a word. 30% cocktail sales, 40% return to beverage, 50% boost speed of service. I would actually use the numbers as the subtext and I would use the benefit as the primary text. So, speed of service is like, get rid of waiting lines. And then it says underneath 50% boost in speed of service. That's me personally. So I referenced earlier in the ads around the copy, but now we're applying the same frameworks from who, what, when to the landing page.

• 43:30Alex Hormozi?

  I like to speak in terms of moments because people don't really, like, they have to translate or unpack a word. Of like a process or some specific improvement. It just takes mental effort and every piece of mental effort you ask someone to use, a certain percentage of people say, nah, I've got other things in my life and they'll dip. I want to predigest the food. I want to predigest the pain and explain the moments that they probably recently experienced that will then make them believe that I have a complete context on their problem and therefore a high likely to be able to solve it. So there's a number of really small things that you can do at a page that can have a really big improvement. First off, like everything that someone sees above the fold, like that's the most important part of the page. Like what happens on someone's mobile device or their desktop before they scroll? That's above the fold is kind of what they say in the marketing world.

• 44:13Alex Hormozi?

  If you've got like the name of your business and it's cold traffic, they don't know, they don't care. So like take that out because they don't know who you are. And so then the headline itself, it's like, we want it to be some sort of very clear like reason for them to move forward. And then I usually have sub headlines that clarify or add context to the headline. And so oftentimes that'll be like without X, Y, and Z or without pain, it qualifies it. Underneath that, it's like, I want it to be as simple and clear as possible what they're going to get. And then basically everything below the fold is just, if you're still skeptical, let me just give you more information to make the decision. But I want all of the information I'm providing to be relevant to why someone should move forward, not just like a whole bunch of stuff about us. And then make sure that you have disclosures around, around results to make sure you explain how these things are calculated. And otherwise it could just be an unsubstantiated claim.

• 44:57Alex Hormozi?

  So lead magnet, so we have the new lead magnet. We have the new funnel. We have the new ad callouts. This is great. We're going to have the $5,800 pricing offer, which I like. And then Ascension, which is going to be a rollover. I think there's a C in there somewhere. Ascension via rollover plus waived 30K offer. All right. Also, the thing is, is this, this in-person onboarding is going to serve as such a good like first experience for them. Cause you're going to fly out, you're fixed month. They'll be like, wow, this was so worth it. And right now your team does all of this stuff, right? Not you?

• 45:33Speaker 01

  I'm all acquisition.

• 45:35Alex Hormozi?

  Okay, you're up. The people flying out is your team?

• 45:37Speaker 01

  Exactly. Yeah, no, I never, I, I.

• 45:40Alex Hormozi?

  So what I want to do, yeah, so what I want to do is add an ultra high ticket with you.

• 45:45Speaker 01

  Yeah.

• 45:46Alex Hormozi?

  So just 5X the price and you can present that first. Yes, get the gas and be like, or I can just have my team do it. To me, the exact same process is just, I got, I got a wife and kids. And so if you want me out there, I'll do it. Happy to. And it's just obviously, you know, this is what we do. But they're going to run the same play.

• 46:03Speaker 01

  Got it. So effectively, the $5,800 pricing is part of like an extended sales.

• 46:09Alex Hormozi?

  Hundred percent. Instead of taking three calls or four calls like you are right now, just get paid, deliver the value. And then, once you have an exchange, they get more than what it's worth. Customers versus prospects are like 10 times more likely to buy again.

• 46:20Speaker 01

  Of course.

• 46:20Alex Hormozi?

  And so just get them, make them customers. So you're getting crystal likelihoods and then they buy again.

• 46:23Speaker 01

  Right. Give them a ton of value. Have it all be with me.

• 46:26Alex Hormozi?

  And it's easy because this is just pricing related, right? It's pricing 15, 30 day fix. They immediately see the value. You're like, dude, if you like this, you don't love that.

• 46:34Speaker 01

  Right. Do you feel like there's a ton, like a lot of value for me doing all that fulfillment? Or do you think that that's something that I can also have somebody on my team?

• 46:42Alex Hormozi?

  I think you do it first, just to get a feel for it.

• 46:44Speaker 01

  Sure, totally that.

• 46:45Alex Hormozi?

  And, and because what I want to make sure that we nail is this.

• 46:49Speaker 01

  Got it.

• 46:50Alex Hormozi?

  Because we're not in it for the $5,800 thing, right? We're in it because we want to see, I would want to see at least 50% upgrading into that.

• 46:57Speaker 01

  Yep. Okay. Get that, get to here and then.

• 47:01Alex Hormozi?

  Make them the money to pay you the next thing. And I would say the way that I operate is that I never want to ask you for money I haven't already made you.

• 47:07Speaker 01

  Got it.

• 47:07Alex Hormozi?

  And you'll notice that's a common theme of how I roll. And so it's like, let me go make you a hundred grand. We make you that with the new bar program. And then with the next thing, it's going to cost you a third of what I already made you.

• 47:17Speaker 01

  Right.

• 47:18Alex Hormozi?

  So you're good. I've already made room for you to afford me.

• 47:20Speaker 01

  Right.

• 47:21Alex Hormozi?

  It's a much easier sale.

• 47:22Speaker 01

  Right. So I charge them $5,800. They're now making $9,000 a month, month over month. And I'm like, oh, look, you have $90,000 that you didn't have before. Look, you can use that on us.

• 47:31Alex Hormozi?

  Right. And you want to make sure that you make that offer before the end of that 30 day period. So it's like, you want to offer it at week two, three, again at four, if you need to. And the way that I offer those things is either I'll do immediate upsells. If I don't have that, which in this one, it doesn't make sense. So you'd have the milestone moment. So they implement it. And they have their first weekend after the pricing audit and their sales are the same or their sales go up and they're like, holy shit, I made way more money. So that would be a moment that I would immediately ask for the sale. The next one that I would have is basically like the next week. Because this is a pretty short time. And then finally, if last chance. So you have three shots at the sale for this. Now, you were taking sales calls before.

• 48:09Speaker 01

  Yeah.

• 48:09Alex Hormozi?

  But now you're talking to a customer.

• 48:10Speaker 01

  Yeah.

• 48:11Alex Hormozi?

  And they've already delivered them value.

• 48:12Speaker 01

  Right.

• 48:13Alex Hormozi?

  Easier.

• 48:13Speaker 01

  And they're making money.

• 48:14Alex Hormozi?

  Exactly. Okay. I mean, big picture, if we're looking at this, like. The funnel redo on its own could very well triple the lead volume that you're getting right now.

• 48:23Speaker 01

  Okay.

• 48:24Alex Hormozi?

  Honestly, just the combination of the funnel redo, the ad call out, having a lead magnet that actually resonates to that specific avatar.

• 48:30Speaker 01

  Yeah.

• 48:30Alex Hormozi?

  Like this alone could probably just triple. Just these things. This is going to dramatically improve sales velocity.

• 48:36Speaker 01

  Sure.

• 48:37Alex Hormozi?

  Let's talk about sales real quick. What do you do like, so what's the, walk me through what like, how you structure the conversation for sales? You already have something.

• 48:44Speaker 01

  Yeah, so that's the, that, this is the like, the click to close, right?

• 48:46Alex Hormozi?

  Okay.

• 48:47Speaker 01

  Prospects, the ad, they visit the landing page, soon to be optimized.

• 48:50Alex Hormozi?

  Yes. Fill out the form.

• 48:52Speaker 01

  Yeah, fill out the form and that automates a text message, text message and email. So text message and email, this, I guess if they didn't book.

• 49:00Alex Hormozi?

  Yeah.

• 49:01Speaker 01

  It'll still, it'll still go out, they'll have the link to book, et cetera. It also triggers a call for my director of ops who's largely involved in the, the intake process. So she conducts an intake. This was previously for, we had this intake process in place because of low quality leads. So she would take an intake call, 15 minutes. If they were qualified, she'd send them off to me. I'd conduct a discovery, usually about 30 minutes. I talk to them about what their biggest pain points are.

• 49:29Alex Hormozi?

  Yeah.

• 49:29Speaker 01

  I ask them all the different questions about what they want to see.

• 49:32Alex Hormozi?

  What percentage of them have been watching the video?

• 49:34Speaker 01

  This new video?

• 49:35Alex Hormozi?

  No, what percentage of them have been watching the video after, like when they get on the phone with you?

• 49:39Speaker 01

  Oh, that, that video is new.

• 49:42Alex Hormozi?

  Okay.

• 49:42Speaker 01

  Yeah.

• 49:42Alex Hormozi?

  So.

• 49:43Speaker 01

  That's like a month ago.

• 49:44Alex Hormozi?

  Okay.

• 49:44Speaker 01

  Yeah.

• 49:45Alex Hormozi?

  Yeah. Well, this last month you've taken sales calls. Have any of them mentioned the video?

• 49:48Speaker 01

  No.

• 49:49Alex Hormozi?

  Okay, so they're not watching it. So this, the way that I structured it here where they're going to have to see the video before they, well, they'll see it and they'll have to scroll in order to get to the scheduler. Will probably increase the likelihood they should actually watch it. But the other thing is, is that that's set call.

• 50:02Speaker 01

  Yep.

• 50:02Alex Hormozi?

  So I'm going to make this number seven. Set goes to then video.

• 50:06Speaker 01

  Yep.

• 50:07Alex Hormozi?

  To then close. So your director of ops is gonna say, awesome. So I'm gonna set you up at Ben, but before you get on, I'm gonna send you this video. Make sure you watch it and I'm just gonna say, do that. Cause the first question he's gonna ask you is, did you watch the video? So, and if you have it, he's just gonna say, okay, I'm gonna grab a coffee. Yeah. And you watch the video. So you're gonna do it either way. So you might as well just do it now. Yeah. And so, and also for you, when you hop on the call, I'll be like, did you watch the video? If they say no, it's like, great, watch that. And I'd be like, and the reason we do that is because I already have a lot of facts and figures and things like that, that I could describe with my words, but it'll take us three times as long as you just watching it. And so then that'll give us good context, rather than me just spewing stuff at you. Right. Which most people are like, okay, fair enough. Yeah. But you don't want me to just give you a lecture for 10 minutes. I don't want to either. This has some graphs, it has some figures in it. That makes it a little bit more, more digestible for you.

• 50:52Alex Hormozi?

  Totally. And so, yeah, that'll be the sales process there. Proposed call. And you'll be like, honestly, if you do these things at this price point, I think you'll be able to start closing like, a lot. Yeah. Cause if we, if you were closing like 50%, which I think you could, if you're owner operator and you're at this point after this kind of process. You'll, you'll, I mean, I think you could close, some people, owner operator, close like 80% of these calls. So I'm a big believer in founders selling the product in the beginning. And I think there's a number of reasons for that. One is it keeps you close to the customer. You can understand how the marketing's doing. You can see who's coming in and that will give you a very rapid feedback loop in terms of what you need to adjust on the front end and how you can kind of get feedback on your offer and your pricing. And it takes out one very important variable, which is that if you have a salesperson that's in there, you might not know if they're doing a good job.

• 51:35Alex Hormozi?

  So you might be like, ah, they're not closing. What's the problem? And they might be like, I don't know, these leads suck. But like, is it a pricing issue? Is it a copy issue? Is it an avatar issue? Being closer to it, you would be like, oh no, it's just, these are the, these are the right people that we're talking to and they're just shocked at the price. So they're not shocked at the price, but they're just not getting it. And so each of those would kind of offshoot into different types of solutions. The big thing is though, I like founders selling the beginning as well, because when you're the founder, you're the most convicted. And so you will typically be able to outperform any salesperson. And in the beginning, when you have fewer resources, you could use the extra conversion percentage and the decreased cost of not having a salesperson or paying the commission. So think, I can close twice as many sales and I don't have to pay the commissions for it. It frees up cash flow so that we can make some of these big bets early on. That are going to build the foundation of the business.

• 52:20Alex Hormozi?

  There's so few leads that are coming in that I think he should be taking these calls. Basically until he can't take these calls anymore. And by the time he can't take these calls anymore, he's already completely blown past his revenue level. They'll have a whole bunch more revenue and cash flow to then solve the problem of him not having time. And that's the game of business. With that being said, that would be like, if you just did that, it would be more than a 5X in sales. Because if you get to 30% close rate, would mean that you'd make the same revenue.

• 52:46Speaker 01

  Right.

• 52:47Alex Hormozi?

  Without your actual $30,000 back edge. Right, but if you're at 50%, you're making 40% more revenue. And then you still have your backend.

• 52:55Speaker 01

  Right.

• 52:55Alex Hormozi?

  One last thing is that I understand why you're not spending that much money. But you are spending too little money. With the fixes that we're at now.

• 53:03Speaker 01

  Yeah.

• 53:03Alex Hormozi?

  It would be okay to keep the spend that you have. But if I were selling a $30,000 thing, you're barely sell, you're barely advertising enough to get enough volume for something of that ticket. And so for me, if I test stuff, I usually test it two times CAC. Per campaign.

• 53:16Speaker 01

  Yep.

• 53:16Alex Hormozi?

  So, I'm sorry, two times, yeah, two times allowable CAC.

• 53:20Speaker 01

  Not current CAC.

• 53:20Alex Hormozi?

  Yeah, right, exactly. That's kind of my benchmark, per campaign though. So I might run multiple campaigns to figure out which one's working. But for you, your funnel process was messed up and that's why this is, that's why your numbers are good.

• 53:31Speaker 01

  Yeah, got it.

• 53:32Alex Hormozi?

  So what I'm referencing here is that I budget two times the cash I collect from the, from a customer in 30 days when I'm testing new ads. For example, if I make a hundred dollars in profit from a customer in the first 30 days, I will let an ad go to $200 in spend before shutting it off as long as I'm getting leads. And the reason for that is usually because there's a certain amount of inefficiency in the beginning that you have to be willing to stomach. To find the ads, the copy, the hooks, the creative variations that are going to ultimately perform. I have to be able to stomach bad ads that don't convert and make up for it in good ads that do convert. And then be like, okay, so this is working, not as efficiently as I want, but it's working. Now let's double down on this and make 10 more variations that are more similar to this messaging. Yeah, and once he finds the messaging that converts, it's like, by all means, blow the doors off and, you know, spend as much as you can. Or at least as much as you can while being able to take all the sales calls.

• 54:17Alex Hormozi?

  That's it, like, this really fixes. The good thing is like this, like you wanted to hit your triple, I make no guarantees. These are high likely, like, shots.

• 54:24Speaker 01

  Okay, that's very encouraging.

• 54:27Alex Hormozi?

  Yeah, no, you've got it. And I think this is. The key because also think about all the calls you're not gonna have to take all the ones that are three calls and then don't close. Right, right. You're spending all your time on these wasted calls when it could be one call closing 5800, 5800, 5800.

• 54:41Speaker 01

  And so you see this as a one call close of 5800 like discovery.

• 54:43Alex Hormozi?

  For sure.

• 54:44Speaker 01

  Discovery.

• 54:45Alex Hormozi?

  For sure.

• 54:46Speaker 01

  Oh, that's your problem? Yeah.

• 54:47Alex Hormozi?

  For sure.

• 54:48Speaker 01

  And it's like, here's, here's the solution right here.

• 54:49Alex Hormozi?

  Not even a question.

• 54:50Speaker 01

  Yeah, I've got it.

• 54:51Alex Hormozi?

  That's like there, you should be expecting one couple. You should set that as the agenda. You'll say your, you know, the four things you have to say legally. Hey, this is X call in from Y regardless of Z. You know, by the way, this call is recorded. Before we get going, um, just want to say, you know, how you doing today? Great. Uh, let me set the agenda. I'm going to go through the lead magnet thing that you just got. I'm going to understand some of the metrics about your, about your bar. And then at the end, uh, if it's a good fit, I can explain to you, um, how we might be able to help you out. Sound good? Great. And then we just go through. I almost forgot because Michael wants me to do this.

• 55:18Speaker 01

  Oh, yeah.

• 55:18Alex Hormozi?

  We can, this could be, this could be, I mean, it actually could be your triple could be right here. You could definitely two to three extra call outs, uh, in terms of CCRs with the ad call out. I'll bet you your conversion rate. Do you know what your conversion on your, on your landing page is right now?

• 55:33Speaker 01

  Like last year it was like 7%.

• 55:36Alex Hormozi?

  Okay, so, so 7% could probably go closer to 30%, which is my benchmark for a lead magnet landing page. Which would be like a nice little chill Forex here. I think you going from 6% close rate to like 30 to 50% is super reasonable. Given the fact that you were the one who's going to be selling it and the price point is what it is. So I think in a real way, you might even make more money just selling this than you're currently doing with none of the extra work. And then all of this.

• 56:01Speaker 01

  God bless.

• 56:02Alex Hormozi?

  This right here is just going to be gravy.

• 56:04Speaker 01

  Yeah.

• 56:05Alex Hormozi?

  So you're basically going to be able to stack potentially probably a double of your current revenue from this source. But then stack 100% of your current revenue from this. How do you like this plan?

• 56:14Speaker 01

  Love it. It's a lot of what I want to do.

• 56:16Alex Hormozi?

  Oh, good.

• 56:16Speaker 01

  And it's, I've started kind of trying to figure out if this is something that makes sense for me to do. And then obviously seeing it all on paper and coming from you gives me a level of confidence to want to do it.

• 56:28Alex Hormozi?

  I would do it pretty much in this order. You're going to redo the funnel.

• 56:30Speaker 01

  Yep.

• 56:31Alex Hormozi?

  Once the funnel's redone, technically the lead magnet would happen at the same time as the funnel. So one and three happen together.

• 56:35Speaker 01

  Yeah.

• 56:36Alex Hormozi?

  Ad call outs, you then run the ads. This is basically. Basically your phone process. So this happens upfront. Four and six would happen together because this is sales process.

• 56:43Speaker 01

  Yep.

• 56:43Alex Hormozi?

  The extension happens after they buy. This is also going to happen again with sales process. So basically one and three together, two happens next, four, six, seven happen third. Then you go back to your ads guys and say, hey, go spend more, go find more keywords.

• 56:54Speaker 01

  Yeah.

• 56:56Alex Hormozi?

  There you go. Hold on, let me, let me.

• 57:01Alex Hormozi?

  It's all about the picky.

• 57:04Alex Hormozi?

  Cool?

• 57:04Speaker 01

  Cool.

• 57:05Alex Hormozi?

  All right.

• 57:06Speaker 01

  I was both very excited and very nervous to come into something like this, to really put it all out there and be vulnerable. Not just in front of somebody who I have an immense amount of respect for, but also people who are going to watch this video. You guys, that was awesome getting through that, right? And I felt, once it was actually done, felt amazing, right? Like it felt great to know that I have a path forward that I can really count on. And while I know that no guarantees are there, I do know that I feel a lot better and that's important.

• 57:41Alex Hormozi?

  So I really liked Ben's business. It's clearly he understands the bar business well, which is one of my big requisites. Like actually be good at the thing before trying to sell the thing. I think if you make some of the changes that I outlined, it's very likely that the business does well. And I like to be clear, this is no way I promise that you who's watching this is home. If you do this in your business, that you'll get the same results because his results are completely up to him and the effort that he takes and his background and his knowledge. So your results may vary. That being said, if you enjoy this type of stuff, these business breakdowns, these cash guys episode, you'll definitely want to check out this one.