Making More $$ For Your Business - Keynote & Q&A | Ep 782

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. Wanna scale your business? Click here. 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?

  If you want to help.

• 0:01Speaker 01

  A million people.

• 0:02Alex Hormozi?

  Sure. Then you can help a million people with the content you make. And then you can monetize through the elite. And so you can sell to the few and help the many. So if you think about what I do, I make the majority of my money on my portfolio. Just to be very candid with you guys. Like, we make a lot more on the deals that we do than on the tickets you guys bought. I get my fulfillment from making all the content I make, writing the books that I do. That stuff fills me up. But I do the deals because I also like making money. This is why I'm not, I'm not a big like follow your passion thing guy because I started being really into fitness. And then I started a gym. And then I did well with my gym and then realized that nothing in my day had anything to do with fitness. And I'm doing payroll, rent, marketing, sale.

• 0:45Alex Hormozi?

  I'm doing all the stuff of business and I'm basically never doing fitness. And so unless you want to be a personal trainer, unless you want to do hairstyling, that's like the true passion, then eventually you're gonna get out of it. And so if you want to keep that cup filled, you just find a way that you can still scratch that itch in a way that doesn't disturb the business. If you try to start a second business because you have this other thing, it'll also quickly become another business that isn't the passion. I've done a lot of quarterlies and strategic planning for portfolio companies. I've been to enough of them to know how to do them well and how to do them shitty. And so what I want to do is give you kind of a framework for leaving here with the highest leverage action items to go home with.

• 1:30Alex Hormozi?

  And then we'll do all the Qs and As, okay? Number one is what? Number two is how? Number three is who? Okay? You have to be able to track any of your initiatives to increasing number of customers, increasing LTP, so lifetime gross profit, or decreasing risk. And so I use this as the first filter when I'm at a strategic discussion with the team and saying, okay, we have limited resources. Obviously, we can't do everything we possibly want to do. We have the time, money, human capital, that we have to then invest because that's fundamentally why we like to think about every entrepreneur is an investor fundamentally within the assets that you have. And we have to get a better return on it. Right? When we're looking at this, I think, okay,

• 2:12Alex Hormozi?

  in what way can I clearly see that this investment is going to either get me more customers, make my customers worth more, or decrease the risk that the first two things don't continue to happen in the business? Once someone says, hey, you know, one of your employees says, hey, I think we should redesign our website, which for some reason is something that a lot of teams just love asking to do, right? Like, I hate our website. I'm like, well, you know what? It converts, so just chill. All right? But you say, okay, fine. Tell me how it increases the number of customers, increases lifetime value, or decreases our risk. Now, if they can't even ladder it up to that, then it's like, maybe we shouldn't do it. Great idea, though. Come back later. If they say, okay, well, I think it would get us more customers, then you can say, cool, how many? By how much?

• 2:56Alex Hormozi?

  And how much time and effort is it going to cost us? So then we have an expected return and an expected investment that's going to take from us. Once we understand that, we can then say, okay, how likely is that? And is there another thing we could do for the same investment that would get us more customers or increase value, lifetime value more? And most times, when you have the entire universe of options, that one thing probably isn't the best one. And so that gives me the big picture of what do we need to do? We're going to do this thing. What's the what? We're going to increase number of customers because that's the thing we have in the business. Okay, cool. So let's say that we're going to say, everything else is okay in our business. We just need to get more customers. Fine. So the second order that we go through is how are we going to do that? Are we going to do more? We're going to do better?

• 3:41Alex Hormozi?

  Or are we going to do something new? Nine times out of 10, especially if you're the zero to one million category, which is about half the people here, you probably just need to do more. And I'll give you an actual, like a rational explanation for this. If you have one sales guy and you go to two sales guys, you can double your sales. When you're big and you've got 20 sales guys, Sometimes you just think you can get 20% more out of the guys you got. And that'll be less effort than hiring and training four more guys. So it'd be a 20% improvement versus me increasing the size of my team by 20%, which would be getting whatever 4.8 more sales guys. So call it five sales guys that have to hire, train, recruit, and make sure they were good.

• 4:24Alex Hormozi?

  Well, which one is more likely and which one is faster to do? Well, once you get big enough, sometimes you get bigger gains on better. But once you make that 20% improvement, now you might have to go back to more. So in the beginning, a lot of times more is the answer without doing anything new. When you get a little bit bigger, sometimes better and more alternate more frequently. And then when you can't do any more, any better, that and only then is when you look at new stuff. And so most times entrepreneurs love doing new stuff, and it's usually the last thing the business actually needs. So right now, you probably have a way to get customers. And you're like, I don't know if it's scalable. Yeah, do 10 times more of it. It's probably scalable.

• 5:01Alex Hormozi?

  So, once we know our what, okay, we gotta get more customers. What's our strategy? We're gonna go with more. Then we finally have, okay, who's gonna own this? Right? Who's the person who's gonna own this? And I can tell you just from experience that if I've had the same quarterly objective, two quarters in a row, and we feel pretty solid about what our more strategy is or what our better strategy is to get more customers or increase lifetime value, then we usually have a who problem. It's like, hey, Sandra, you've been in charge of this two quarters in a row. For me to think somehow magically this quarter's gonna be the quarter after the first two times you messed it up, that's a me problem. Right? I'm the one who's making terrible judgments here. Once you go through these three frames, I remember Michael, who was here, he sits on some of the portfolio meetings. He was like, you know, it's crazy. I expected there, this is when he started with us.

• 5:46Alex Hormozi?

  He's like, I thought there was gonna be way more like, hey, do this and this one judo move. He's like, but 90% of the time, you guys are like, Becky sucks, let's move her over. I think we need to replace this person. Well, how's recruiting going so we can scale up this department? That's usually what the discussions are because past a certain size, it's all about people. And so you need very little of this when you get big, and a lot of this. And when you're smaller, you feel like you need a lot more of this and very little of this. Okay? So that's my little framework. For you guys in terms of thinking through what you're going to leave with here today, with your sticky note of things that you want to do is make sure that you can very clearly see, is this thing going to get me more customers? Is it going to make it worth more? Or is it going to make my company worth more by decreasing the risk? And if that's what the objective is, am I going to pursue a more path, a better path, or a new path?

• 6:30Alex Hormozi?

  And once I know that, who's going to own it and buy when? Yes, sir.

• 6:34Speaker 02

  We offer a checking account that pays 5.25% interest, 125 million FDIC insurance. Just wanted to get your perspective and insight on who the ideal, ideal customer profile would be to offer something like that, too.

• 6:46Alex Hormozi?

  I mean, it's a very interesting offer. So, I mean, who here is getting 5% on their business cash? Probably no one. You could grow that on any channel right now because the vast majority of business owners aren't doing it. And so, like, it's just business owners. And then you probably just want the business owners to have the most cash on hand. So probably businesses that have higher capex would be the ones that would make more sense. So I would say like, physical products businesses will be helpful because they have to, like, they always have to keep cash on hand so they can buy more inventory. Like manufacturing businesses, things like that. Those are the ones that are going to have the most cash. Otherwise, like, service-based businesses typically just keep what they need in payroll for a month or two, whereas some of the other ones want, you basically just want the ones that have to have the biggest war chest. Because for you guys, it's basically just how many dollars are in their account.

• 7:30Alex Hormozi?

  So it is very much a whale business. And so I would look at, and you probably already have some data on this in terms of your existing customer base, I would cut the crap out of that data and just say, okay, okay, is the, who's the 80/20 of this base? Try and do it by, by industry. Because size, obviously, like, the bigger the size, the more money they're going to have. But if I could also get size times industry, then I would just start there. It makes my search a lot narrower. My messaging can be more targeted based on outreach. Or how are you guys doing it right now, outreach? Are you doing content?

• 7:56Speaker 02

  Yeah, cold outreach.

• 7:57Alex Hormozi?

  You're doing cold outreach? Yeah, I mean, I think it makes sense. You can be more highly targeted. Outreach is probably the strategy I do. I think content to supplement that is going to be important because they're going to give you all their money, right? Like, that's kind of thing. So they want to make sure that you're legit. And so I think putting, having the content there is going to do more on the conversion side than on the lead gen side. So that when you're doing your outbound stuff, people are going to come to the page, they're going to look at all your stuff and then be like, oh, these guys are legit. Maybe I will shop for that call. Right? So it's like, That's for all you guys who aren't, so if you do outbound or even if you do paid ads, content's kind of like this really nice baseline layer that you want to have. Just because if they click the ad, the next thing they're gonna do before they like, actually opt in or show up for the, the call, is they're gonna like, look at you before they're gonna go give you money. Like, that's probably what you do too, and only the crazy people don't do that.

• 8:42Alex Hormozi?

  So have that baseline, um, layer of content, and I think for you guys especially, I would basically want to increase their problem awareness of this is how much money you didn't know that you're losing. And if I were trying to sell to business owners, a lot of business owners don't like other people making money on their business. And so you're like, let me show you how much money everyone's making on you. And I would like to just put that back in your pocket.

• 9:05Speaker 02

  Solid. Thank you.

• 9:06Alex Hormozi?

  Yeah.

• 9:06Speaker 03

  Hey Alex, thanks so much for all the content you put out. It's been a great help.

• 9:09Alex Hormozi?

  You bet.

• 9:10Speaker 03

  I help people avoid surgery, especially in the knees. That's what I'm biggest on, on YouTube and,

• 9:14Alex Hormozi?

  Knees?

• 9:15Speaker 03

  Knees, yeah. Knee arthritis is our biggest seller.

• 9:20Alex Hormozi?

  Cool.

• 9:20Speaker 03

  I have four other programs for other knee conditions.

• 9:23Alex Hormozi?

  Do it yourself type programs?

• 9:25Speaker 03

  Do it yourself.

• 9:25Alex Hormozi?

  Okay, got it.

• 9:26Speaker 03

  We're starting to build the do it with you service as well. Was gonna go into writing a book for all knee pain, including all of it in there. Now I'm thinking, maybe I should just niche down on knee arthritis since that's the biggest thing, going back to your more better how.

• 9:38Alex Hormozi?

  Sure.

• 9:38Speaker 03

  Also, you said stick to one channel if you're under a million, which that's where we're at, approaching a million.

• 9:44Alex Hormozi?

  Are you do, or is it via content? Is that how you have all your customers?

• 9:47Speaker 03

  YouTube.

• 9:48Alex Hormozi?

  Okay, cool.

• 9:49Speaker 03

  What do you think? Should I stick to knee arthritis or write everything about the knee?

• 9:54Alex Hormozi?

  I think knee arthritis, if that's your number one seller right now, I think it would make sense to continue to do that stuff. I mean, to me, going knee arthritis to knee doesn't feel like, you know, like, this is a major, like, oh my God, I can't believe you're talking about knee stuff now. This guy's just, like, he doesn't have authority to talk about this. Just talk about arthritis, man. You know, like, I don't, I don't, I don't think you're gonna have that. So I'll say this, this is kind of one of those unique scenario, it's not that unique, but like, If you talk about knee stuff in general, I don't know I have knee arthritis. So I'm problem aware, not solution aware as a customer or a prospect. And so I think talking about knee stuff in general, all they know is they have knee pain. You can then help them diagnose the type of pain and then funnel them to whatever solution that they have. Can you solve other problems besides knee arthritis?

• 10:38Speaker 03

  All day.

• 10:38Alex Hormozi?

  Okay, great. So then, yeah, I think that makes sense in terms of front ends. But in terms of increasing the monetization of the business, if I were to build this, if I were like buy your business tomorrow, I would do the done with you service first. That'll increase your cash flow for the business and they can reinvest in more front end stuff.

• 10:55Speaker 03

  Like the book.

• 10:57Alex Hormozi?

  Right, sure, exactly. So you have your front end now, add the back end, increase cash flow, and then you can put the people in place or free up some of your time so that you can put more time into more front ends.

• 11:08Speaker 03

  So I'm thinking, right, I'm thinking if it right, the book would be like an adding another channel, whole distraction versus if I just keep chipping away at YouTube.

• 11:15Alex Hormozi?

  Yeah, I mean, the book's, the book's not even a channel. It's just like a lead magnet.

• 11:19Speaker 03

  Okay.

• 11:19Alex Hormozi?

  The book's not going to do a ton, to be really honest with you. Like, the only way books actually become a channel is if you climb up the rankings, get a zillion five stars on Amazon because people buy it and love it, and then Amazon actually becomes your channel. They become a traffic source for you. So like, we sell like 2,000 books a day on Amazon. So that means that there's some people obviously come from my stuff and then go to Amazon. But there's tons of people who just search marketing on Amazon and my books are number one and number two. For those people, they don't know who I am. And so there's a lot, anyone find the book and then find my stuff later, who's in here? Okay, so like, that, that happens. But that's a very small amount compared to everybody else in this room. And so you doing the book is not going to like really do much.

• 12:00Alex Hormozi?

  I think if you take that same content and just make it public in some sort of video format, probably a lot faster for you. It'll probably make you more money.

• 12:07Speaker 03

  Cool. Thanks, Alex.

• 12:08Alex Hormozi?

  Yeah, you bet. Yes, ma'am.

• 12:09Speaker 04

  Hi, Alex.

• 12:10Alex Hormozi?

  Hello.

• 12:10Speaker 04

  I talked to you before on that live. You, I'm the writer, anyway.

• 12:13Alex Hormozi?

  Yeah, I remember. Yeah.

• 12:15Speaker 04

  I have two businesses. One is a personal brand, right? So the typical, I'm a writer, speaking engagements, that whole thing. I came here, though, for help with my academic branding company because I teach tenure professors how to Build brands.

• 12:30Alex Hormozi?

  That's cool niche.

• 12:30Speaker 04

  Yes, branding company.

• 12:32Alex Hormozi?

  They have money and no business to have, it's great.

• 12:34Speaker 04

  Yes, eh, exactly. My question is, I'm running the branding company through LinkedIn.

• 12:40Alex Hormozi?

  So like outreach and content?

• 12:41Speaker 04

  Yes, that's where all the sales funnel is coming through. My personal brand is crushing it on like Instagram and TikTok and stuff, right? But the branding company is not doing that well. And I just want to know, am I doing too much? Should I just focus on my personal brand stuff and just put the branding company?

• 13:01Alex Hormozi?

  So what's the difference? So the personal brand stuff is what? I understand the avatar for the ac- the academic tenure thing. Who's the avatar for your personal brand?

• 13:08Speaker 04

  So it's basically I teach creatives how to get to six figures. Basically, what I've done as a writer is what I, it's all directed towards creatives. Basically, I'm teaching creatives and PhDs the same thing, how to, how to build their brand and monetize.

• 13:24Alex Hormozi?

  It probably makes sense to marry those two things.

• 13:26Speaker 04

  Yeah, how do I do that?

• 13:27Alex Hormozi?

  I mean, make content. You want to make content about the stuff that you sell, right? Like, whatever you make the most money on is the stuff you should talk about. The thing that'll differentiate your examples is, like, you could start talking about the PhD stuff and just weaving those examples into your personal branding stuff. They, they don't feel like different businesses to me. If you teach the same thing, then it's just like I have two avatars that I teach the same thing to. And my personal brand, I don't do much content on this other avatar, in which case I'd ask, why do we have the avatar?

• 13:56Speaker 04

  If I start talking to PhDs on my personal brand. Will I lose those creatives though? Cause now I'm not specifically talking to them, right?

• 14:06Alex Hormozi?

  You'll lose, you'll lose them on the content that's not about them. So if you made one piece of content that was about creatives and then one piece of content that's, I mean, if you look at my content strategy, right? Like, I think about it from terms of slices, like, so I have school, right? So, school is for people who are, they want to start a business, and right now that's still seventy percent of my audience, because I talk about business stuff. And then thirty percent of my audience is business owners. Guess who's a hundred times more valuable? That side, right? But I still have school and I have the investment, and part of the reason, just so you guys know, the reason I did that investment is I was like, okay, I have all these people who are like, help me start a business, like. Like, why don't you just go to school and I'll make a way that's scalable for me. I mean, I can't help 10,000 people a day. It's not feasible. But with school, it's like I can do that. I can kind of just direct them in a way that I can help one to many.

• 14:48Alex Hormozi?

  But then for the businesses, then it's like, go here. And so if you see my CTAs, it's like, hey, if you're a business and you want to scale, go here. And if you want to start a business, go there. I will sift traffic if it makes sense because they're they're still related. It's just what level of stuff I'm talking about.

• 15:02Speaker 04

  Right.

• 15:02Alex Hormozi?

  Now, with your thing, I think it's okay for you to talk about the other stuff that you do in your business. And I'm guessing you use you could use your LinkedIn business as an example in your personal brand stuff. It feels like it's more separate in your head than it is in reality. If you teach the same thing, you just have two avatars. So just use them as different examples.

• 15:20Speaker 04

  Okay.

• 15:21Alex Hormozi?

  I mean, that's that's really it. And the thing is, is if you teach a process, the process can work for just about anyone. Examples is the thing that really makes people think, like, I don't use a lot of e-commerce examples. Mostly because I don't really like a lot of e-commerce brands. Nothing wrong with them. I just haven't I haven't done as many of them. I like a lot of service. I like financial stuff. I like software, like 40% of our portfolio is software. I like brick and mortar. Like, those are those are games that I know how to play really, really well. And so that's what I focus on. Those are all my examples. And so in this room, if I slice this, it's like 90% here would be covered with service, brick and mortar, info, and SaaS. So your examples will tell your audience who you're looking for. The method or the thing that you teach is really just like the vehicle. Does that make sense?

• 16:01Speaker 04

  Yeah, yeah.

• 16:02Alex Hormozi?

  So just think about it like that. It probably applies to more than one person here. That's how you can basically segment yourself in the audience.

• 16:08Speaker 04

  Thank you.

• 16:09Alex Hormozi?

  Does that help?

• 16:09Speaker 04

  Yes.

• 16:09Alex Hormozi?

  Okay, cool. Yes, sir.

• 16:11Speaker 05

  Something you said to me yesterday, which you've said to me like 50 times already, but it only sunk in yesterday, was the easiest thing to sell someone is more of what they already bought.

• 16:21Alex Hormozi?

  Yeah.

• 16:22Speaker 05

  In that van process, I identified like straight away, you know, flashing red lights, the biggest thing that it fixes our LTGP.

• 16:28Alex Hormozi?

  Cool.

• 16:28Speaker 05

  Has got to increase. We currently sell a 5K front end, which is a certification.

• 16:33Alex Hormozi?

  For what?

• 16:34Speaker 05

  For Pilates. We teach online. We teach people to be instructors.

• 16:36Alex Hormozi?

  Cool, love it.

• 16:38Speaker 05

  Uh, we currently have zero backend on that. The obvious thing is sell them more of what they already bought.

• 16:43Alex Hormozi?

  Yeah.

• 16:43Speaker 05

  So my question is, you know, I heard what you said about the school community and what you found was you don't want to overwhelm people. So you do like one live call a month, one piece of content a week. Like our front end is priced at 5K. I want to price the back end higher because obviously you've got a less than 100% uptake. So you want to WLTGP, you've got to have a higher price. So how would you price it and how would you, you know, how would you structure it?

• 17:05Alex Hormozi?

  You're at 5K.

• 17:06Speaker 05

  Yes.

• 17:06Alex Hormozi?

  Just, I would do this. So there's basically two options. So yesterday I talked about like, please have some sort of auto renewal, everyone. So this would be applying to you. So the auto renewal level, I'd probably do it like 997 per year. And so think about this, like you're in the fitness world. So like CrossFit, for example, like you basically just get the name and then you have to get certified through L1 or whatever. That model works if you defend the brand. And there are some benefits that you can use, like NSCA, if you're familiar with them, they certify personal trainers. And the model there is you pay for whatever your bootcamp is, two days, and you get a certification. If you pass the test, awesome, now you're allowed to be a personal trainer. And then they have an annual renewal that's significantly less, 500 bucks, whatever. And that allows you to say that you are an NSCA certified personal trainer. And they stack a couple of benefits here. So they say, we

• 17:51Alex Hormozi?

  will give you insurance up to a million dollars on any injury that occurs. And so then, personal trainers, we're always afraid of like, what if I hurt somebody? It's like, don't worry, we got you covered. And so for 500 bucks a year, they have the insurance and they get to say the name. And so, and most people, especially beginners, think they need certifications. We all know, by the way, that's not true. But they think that. And so, sure, we can sell that to them. Now, the ascension part is probably going to be, I'm going to guess, because I don't think Pilates instructors make a ton. I'm going to guess it's somewhere in the like, if you just kept people, honestly, like in five to, five to 10K a year, that would be the price point that I'd be looking at for the Pilates instructors. And so when you sign someone up, you say, hey, it's 5,000 bucks. It renews annual at 1,000. Here's the benefits of renewing annually. By the way, global insurance policies, you could

• 18:35Alex Hormozi?

  run like 90% margins on this. So, and the certification margin is 100%. That's cool. So they could just do that and then get a community, very simple delivery. And then the upper level is like, hey, we meet twice a year and we talk about the strategies of like increasing your income, getting more side clients, and like the more business you stuff. And I think in that price point, you'll probably be okay. So this is something I would test. I could start at five and then say it renews annually at five and you get these other benefits. And if they're like, nah dog, and you hear that a lot of nah dogs, then, then just make the standard, the 1K, and then upsell them, you know, a month or two in.

• 19:09Speaker 05

  So you wouldn't do like a one-off five or 10K, you know, follow-on program? You'd, you'd make it renewing?

• 19:16Alex Hormozi?

  Yeah, I like recurring. Okay, how do I sell that? Right? So if you're, if you're running, call it three events a year for your base, right before you have your events, you hit up everybody who's been sold into this, but has been sold into this, right as the events come up. And then they have this nice deadline that they have to buy, have to buy, have to buy. And you give some sort of incentive. So a nice one would be like 5K, we'll put it towards the 10, which means it's five, if you do it before the first event that we have. That's what I would do. That's a very simple model.

• 19:42Speaker 05

  Thank you.

• 19:42Alex Hormozi?

  Yeah, you bet.

• 19:43Speaker 01

  Hey Alex, how are you doing?

• 19:44Alex Hormozi?

  What's up?

• 19:45Speaker 01

  Yeah, my name is Said. After recovering from my addiction, I started like a YouTube channel.

• 19:49Alex Hormozi?

  Cool.

• 19:49Speaker 01

  Took off in three years. I have like a community. Then I follow you, I started my business. Then after actually reading your book, I 6.8 my business within four months. It was great, you know?

• 20:01Alex Hormozi?

  So you overpaid for the 99 cents. Okay.

• 20:06Speaker 01

  How you manage between, how you balance between helping people and not focusing on money, especially like if the business industry, like especially you have a personal brand. In the Middle East, where my business is located, like there is a lot of like crap in healthcare. We don't have really good addiction treatment. So I think a lot of people are following me. I really wanna help a lot of people at the same time. But also I love the entrepreneurship. I love the money.

• 20:27Alex Hormozi?

  Yeah. One of the things that happens like when you start growing your business is the, you have a customer that you kind of got into business for, and then you start falling also in love with business. And sometimes your love for the business can exceed your love for the customer. And so then people are like, oh, you know what? I love hairdressers and so I also love helping them and I wanna find a way, but like I have this business that I do that and I, I don't wanna get distracted, right? The big thing that I think entrepreneurs in general, like we all do this, is we think we need to monetize everything. And I just don't think that's the case. If you wanna help.

• 21:01Speaker 01

  A million people.

• 21:02Alex Hormozi?

  Sure. Then you can help a million people with the content you make. And then you can monetize through the elite. And so you can sell to the few and help the many. So if you think about what I do, I make the majority of my money on my portfolio. Just to be very candid with you guys. Like we make a lot more on the deals that we do than on the tickets you guys bought. I get my fulfillment from making all the content I make, writing the books that I do. That stuff fills me up. But I do the deals because I also like making money. This is why I'm not, I'm not a big like follow your passion thing guy because I started being really into fitness. And then I started a gym and then I did well with my gym and then realized that nothing in my day had anything to do with fitness.

• 21:42Alex Hormozi?

  And I'm doing payroll, rent, marketing, sale, I'm doing all the stuff of business and I'm basically never doing fitness. And so unless you want to be a personal trainer, unless you want to do hair selling, that's like the true passion. Then eventually you're gonna get out of it. And so if you want to keep that cup filled, you just find a way that you can still scratch that itch in a way that doesn't disturb the business. If you try to start a second business because you have this other thing, it'll also quickly become another business that isn't the passion. You can say a certain percentage of your, like if you want to tie the two goals together, you can say that no matter what, we always give 5% or 10% of our profit every year to help these cases. And so then that way it motivates you to make more and more money, which you like, because you know that the more money you make, the more people you help.

• 22:27Speaker 01

  Thank you.

• 22:28Alex Hormozi?

  Yeah.

• 22:28Speaker 01

  Shoot.

• 22:28Speaker 06

  Should I go into a bulk or a cut? No, I'm just kidding.

• 22:32Alex Hormozi?

  Bulk for sure.

• 22:35Speaker 06

  My arm's just shrunk two inches.

• 22:38Speaker 06

  Nah, so referring to your sales fulfillment continuum.

• 22:42Alex Hormozi?

  Sure.

• 22:42Speaker 06

  So you basically recommend that starting off a smaller businesses need to prioritize the easier to sell, harder to fulfill. Additionally, like higher ticket, same category. So in our particular business, at least from my understanding, the lower ticket is easier to sell, harder to fulfill, and the higher ticket is like the opposite. And so.

• 23:04Alex Hormozi?

  Easier to fulfill and harder to sell?

• 23:05Speaker 06

  Yes.

• 23:06Alex Hormozi?

  Interesting.

• 23:06Speaker 06

  At least from my understanding, I could be, I could have a belief. So we do short-term rental management, Airbnb management. So like with that understanding, would you recommend that I still do like the lower ticket potential client? Or do you recommend I still go high ticket as we scale?

• 23:22Alex Hormozi?

  Yeah, this is a great question. I'll give a different example to answer the question. So I had a lady a couple of months ago who was in the same position as you. And so she did hairstyle stuff. And so she's like, okay, I can teach hairdressers how to do this particular type of cut. So that was her low ticket thing. She's like, or I've got this business coaching thing that's like fifteen thousand dollars. So one thing was fifteen grand, the other was two grand. And so I just asked, what's the biggest LTV to CAC, like what's the LTV to CAC ratio for each of these products? And so for the two K product, it was thirty to one. And for her fifteen K product, it was twelve to one. But this one was more money. And so I was like, okay, well, we've got bigger LTV to CAC here. So the only reason I wouldn't do this is if there's way fewer of these clients, but there's way more hairstylists that just want to learn a new style than people who want business coaching.

• 24:07Alex Hormozi?

  I was like, okay, so we have a way bigger market and a bigger discrepancy in LTV to CAC. Well, let's just do as much as this as humanly possible and then take this thing and put it behind. So you acquire customers as profitably as humanly possible, and then your focus goes on ascension. Does that make sense?

• 24:22Speaker 06

  Yep.

• 24:22Alex Hormozi?

  And so within your thing, if you have one thing that's really, really easy to sell, use that as the front end. And then basically your focus as the entrepreneur is on the ascension for those people who then become qualified to buy the the more expensive one.

• 24:34Speaker 06

  So basically like having to like two offers depending on like who's coming in, basically.

• 24:39Alex Hormozi?

  Yes.

• 24:39Speaker 06

  Perfect.

• 24:40Alex Hormozi?

  But the idea is that you want to sell, you want to sell the thing or want to promote the thing that has the highest LTV to CAC discrepancy. Cause then you're profitable in the acquisition and everything else is gravy. Make sense?

• 24:50Speaker 06

  Yeah.

• 24:51Speaker 07

  Hey Alex, my business is Avi AI. We're a mobile app that allows realtors to capture professional quality photos using just their smartphone instead of needing to hire a photographer.

• 25:00Alex Hormozi?

  Cool.

• 25:00Speaker 07

  They just use our app. It's a credit based system. So one credit is one photo, basically.

• 25:04Alex Hormozi?

  Okay.

• 25:05Speaker 07

  Our offer is don't pay for photos on your next listing.

• 25:07Alex Hormozi?

  Cool.

• 25:07Speaker 07

  Here's twenty five free credits just for signing up. No credit card required.

• 25:11Alex Hormozi?

  Okay.

• 25:12Speaker 07

  My question is, how do we monetize from that offer and someone having a good experience with the app to getting them to actually become a paid customer? That transition, I think, is the biggest green light we need.

• 25:23Alex Hormozi?

  Okay, so are you getting a lot of people who are doing the free credit thing?

• 25:28Speaker 07

  So we're beta phase and we're launching live right now. The beta phase has been amazing.

• 25:33Alex Hormozi?

  Okay.

• 25:33Speaker 07

  Everyone loves, we had zero percent churn with

• 25:35Alex Hormozi?

  Great.

• 25:35Speaker 07

  our smaller user base.

• 25:38Speaker 07

  It's actually a charge beta.

• 25:40Alex Hormozi?

  Okay.

• 25:41Speaker 07

  We are actually are.

• 25:42Alex Hormozi?

  Okay, good.

• 25:42Speaker 07

  People are paying.

• 25:43Alex Hormozi?

  Otherwise, give me a little poke. Okay. My churn on my book is zero too.

• 25:48Alex Hormozi?

  I'm fucking with you.

• 25:49Speaker 07

  I got you. People are skeptical, right?

• 25:52Alex Hormozi?

  Yeah.

• 25:52Speaker 07

  Because it's a novel, new product.

• 25:53Alex Hormozi?

  Hundred percent, yeah.

• 25:54Speaker 07

  It's kind of riding this whole AI wave.

• 25:56Alex Hormozi?

  Yeah, sure.

• 25:56Speaker 07

  People are skeptical, so. Once they use it once, they love it.

• 25:59Alex Hormozi?

  Yeah.

• 26:00Speaker 07

  We have people like forcing growth in our beta phase. We're like, stop sharing.

• 26:03Alex Hormozi?

  Yeah.

• 26:04Speaker 07

  It's like a good problem to have.

• 26:05Alex Hormozi?

  Yeah.

• 26:06Speaker 07

  Just that sticky point of like, here's the offer, cool. Now, how do we monetize them?

• 26:10Alex Hormozi?

  Well, you're going to charge for the credits after the first 25, right?

• 26:13Speaker 07

  Right, but if they, in a world where they only use 20 credits, they have a five credit remainder, right? Like, how do we retarget them to get them to come back for the second shoot? Hopefully, they just do it on their own? Or just kind of, yeah, how do we make that process just as smooth as possible? With like removing that friction there, right?

• 26:29Alex Hormozi?

  You'd have to find a way, because when they're coming to you, they have a house they need to sell. Right, so then they have that. Now, I would imagine that you're going to have, because the way that the realtor industry is, it's like 95/5. It's like 5% of realtors sell 95% of houses. And so, you're going to get a ton of the intro realtors who only have one house that's been sitting on the market forever because they don't, they're not real realtors. And so, they'll use up their 20 credits and then they'll still sit there and they'll get another house in a year or whatever, and those are useless for you and a pain. So, I think it's targeting the super users and probably the brokerages. It's probably like, if I had like, what would be my fastest way of doing this? Is I'd probably do outreach to brokerages because they're going to have 10 agents, 20 agents, 50 agents underneath of them.

• 27:14Alex Hormozi?

  And if you sell the brokerage on it, then you say, listen, our average, like, do you have stats around average sale of house that uses your pictures versus not? That uses your pictures?

• 27:26Speaker 07

  Not yet, but we have before and afters and like.

• 27:27Alex Hormozi?

  Dude, that would be the first stat that I capture.

• 27:30Speaker 07

  Okay.

• 27:30Alex Hormozi?

  Is, okay, figure out what the average home sale length in the US is. And then look at the average home sale length of people who use your pictures. Show the graph and then say, what is this time to close worth to you? And it's going to be far more than whatever you charge for your credits.

• 27:46Speaker 07

  I think one of our big, big value props is like you could use our app and literally list the same day instead of hiring a photographer.

• 27:51Alex Hormozi?

  Sure.

• 27:52Speaker 07

  Who's not only more expensive, but it might take you a week by the time you schedule, edit photos back and actually go live.

• 27:57Alex Hormozi?

  Yeah. So those are two different speeds. So one is speed to close, the other speed to list. And I think those are separate, but also really cool. But in terms of the ascension process, one, I would go to brokerages because it's going to be more leverage. You can get 50 agents at a time. And then in terms of getting the realtors to come back, I would, I mean, this is me, I like hopping on the phone with people, especially in the beginning. And so I'd be asking, how many houses do you have right now? And so if I can get all of the houses, you know, like, can I get them to buy a big bulk of credit so they have 10 houses worth or 20 houses worth? Get them prepaid, increases cash flow for you and it gets the commitment.

• 28:32Speaker 07

  Yeah. One thing we want to do is like sell a yearly plan, but then also offer like an after pay situation where they don't have to pay in bulk, but we get the cash collected and then they can kind of use the credits throughout.

• 28:41Alex Hormozi?

  I would use the audible system since people are already familiar with it. So they get credits every month.

• 28:46Speaker 07

  That's, that's what we're going to do. And then when audible, when you cancel, you lose all your credits if you choose to cancel. So kind of have that way of reducing.

• 28:53Alex Hormozi?

  Yeah. I would just use the credit system. We have a, the large portfolio company we have, that's how our software works. It's, it's a, it's a usage based credit system, but they still bill annually.

• 29:01Speaker 07

  Thank you.

• 29:02Alex Hormozi?

  Cool. Yes, sir.

• 29:02Speaker 01

  Yes. So my partner and I came here with the intention of to learn how to grow our business.

• 29:08Alex Hormozi?

  Sure.

• 29:08Speaker 01

  10 net spas.

• 29:09Alex Hormozi?

  Oh, sweet.

• 29:10Speaker 01

  Yes.

• 29:10Alex Hormozi?

  Love that space.

• 29:11Speaker 01

  And then after yesterday, when you talked about like building your company for, to sell it.

• 29:16Alex Hormozi?

  Sure.

• 29:16Speaker 01

  It's like, okay, we can, we could probably do that. Like that's, that's something that made all, you know, perfect sense and 40 million sounds pretty good. And better than the cash cow that we make now.

• 29:24Alex Hormozi?

  How can it help?

• 29:25Speaker 01

  The way, the way that we build it was different partnerships, different states, different, we like, we opened one by one. And the strategy always changed and we grew. And now that we figured it out, now we have the winning formula.

• 29:36Alex Hormozi?

  You have the model.

• 29:37Speaker 01

  Yes. We have like the, the perfect model. My question is really, do we go back with the existing partnerships that we have with like the non-compete contracts that we have with certain partners in different states? Do we go back and change the existing or do we leave it like a cash cow and slowly grow it? And then open a new company with the intention to sell it from scratch with our winning formula? Grow that and try to sell it in like forty months.

• 29:59Alex Hormozi?

  I think you can definitely merge the companies. If you're familiar with, do you know what a private equity roll up is? So basically with a roll up, you have many businesses that are similar. So let's say I'm doing a roll up for chiropractors. So I would go knock on doors and be like, hey, Mr. Chiropractor, can I buy your business? And so they might say, yes, sure. But if I get ten chiropractors together that have John, John Smo chiropractor, Jim Crackback chiropractor. I have all these different chiropractors. That's not a very valuable asset yet. So I have to get them all to convert to the same CRMs, same backend systems. I can consolidate all the payroll, so I get all of that. I can centralize the phone system, so it goes to one person. And so I get lots of EBITDA that drops to the bottom line just by consolidating systems. And then I get them all in the same colors, same logo, same whatever.

• 30:41Alex Hormozi?

  And so then you make the deal where you say, hey, what are your partnerships like fifty fifty or like what's the deal?

• 30:45Speaker 01

  Yes, they're different based on the situation because we kind of

• 30:48Alex Hormozi?

  Sure.

• 30:48Speaker 01

  Always improve the deal as we went.

• 30:50Alex Hormozi?

  Understood. And so, yeah, once you have more proof, you could I get it. So what I would end up doing is probably making some sort of Holdco and saying, I'm gonna try and swallow all of these up. You guys are gonna get way smaller slices of Holdco, so you might get five percent of Holdco, but we're gonna sell Holdco for like two hundred million. And so the thing is, is the way you explain this, your individual asset is probably not that sellable. Like, let's say they own fifty percent of one of your med spas, right? You being able to sell this is gonna be really hard and you're probably only gonna get like a three X multiple in it because buying a one-off med spa is just not super valuable. If you sell with us, we're gonna get ten X. And so your half is still worth more. The, the smaller slice of this big thing is worth more than the fifty percent slice of this smaller thing.

• 31:33Alex Hormozi?

  And so basically, Holdco takes a hundred percent ownership of the new entity, of the old entity. And then they get a tiny slice of the big thing that owns everything.

• 31:42Speaker 01

  If we just sit down and think of a new name, new concept, new color, whatever, and just continue growing parallel. And then we can just keep the partnerships and make a new one from scratch. With the winning formula without these partners, wouldn't it just make more sense to do it like that? If it's the same effort, like to change

• 31:58Alex Hormozi?

  I mean, do you think it's the same effort?

• 32:00Speaker 01

  I think we created not a mess, but

• 32:02Alex Hormozi?

  Let me explain why private equity roll up exists. Because it's much easier to combine ten than start ten.

• 32:07Speaker 01

  Okay.

• 32:08Alex Hormozi?

  And so if you have the relationships, then it's like, let's just, and I'm sure you use the same backend systems, probably because you

• 32:13Speaker 01

  Yeah.

• 32:13Alex Hormozi?

  Right, you just have to change the fucking logo.

• 32:15Speaker 07

  Not even like

• 32:17Alex Hormozi?

  Right, okay, so like you're already like ninety percent of the way there. This is why I'm bringing this up. So you're ninety percent of the way there. And when you see how much money that you would make in being able to sell all of these ten for your slice, you're not gonna wanna not include those.

• 32:30Speaker 01

  I see.

• 32:31Alex Hormozi?

  So I would do that. If you have the better model, the smart cookie move is let's go to other men's spas that already exist.

• 32:38Speaker 01

  We've done that also. Some of them are like that.

• 32:40Alex Hormozi?

  Right, so you wanna convert, like that's the model. Like this is the private equity models. This is who we're looking for. They do between one, three million. They got a solar guy. He's kinda older. He wants to get out, whatever. And we take over with our systems and then we consolidate. We put everything central. And so we get more profit. We have, you know, way better systems. And that's how you can gobble up a marketplace. And then the equity arbitrage that you have is you can buy for three and sell for ten or sell for twelve when it's big enough. Like that is the PE play. That's how it works.

• 33:04Speaker 01

  Okay.

• 33:04Alex Hormozi?

  Could you start scratch? You absolutely can. I mean, obviously you guys are good at it. You'll make money either way. It's just a question of which one will make you the most money, the fastest. If you already have ninety percent of the conversion here, I would lop everyone in. They don't have any voting power. I have all the voting. You guys don't. You have to agree to these terms upfront and then, I mean, just make the deal.

• 33:22Speaker 01

  Okay, thank you.

• 33:22Alex Hormozi?

  And the day to day wouldn't change. It's just what the, what your ability to sell changes. That's it.

• 33:26Speaker 07

  And I wanted to say thanks for everything.

• 33:28Alex Hormozi?

  Oh, you have. Thank you. Yes, sir.

• 33:30Speaker 01

  Hey, Alex.

• 33:30Alex Hormozi?

  Hello.

• 33:31Speaker 01

  I am a dentist. I created a course to teach dentists how to do clear liners.

• 33:35Alex Hormozi?

  Okay, like Invisalign?

• 33:37Speaker 01

  Yeah.

• 33:37Alex Hormozi?

  Okay.

• 33:37Speaker 01

  Uh, but brand agnostic.

• 33:39Alex Hormozi?

  Yeah.

• 33:39Speaker 01

  Went all in on this last year, so I don't practice anymore. My wife helps me with a lot of like the backend financial stuff.

• 33:46Alex Hormozi?

  Yeah.

• 33:47Speaker 01

  I struggle with whenever the numbers come up. Uh, she's big into data and like I've learned, super important. I tend to get just like really emotionally charged about that.

• 33:57Alex Hormozi?

  Okay, like sales numbers down, you're like, I hate this thing. Like yesterday, big roller coaster.

• 34:01Speaker 01

  Yeah.

• 34:02Alex Hormozi?

  Zero for ten, let's kill everybody.

• 34:03Speaker 01

  Partially that, but also she'll just kind of tell me like, hey, like business isn't doing that great. And then I'm kinda like, kinda living in my own like head.

• 34:10Alex Hormozi?

  Sure.

• 34:10Speaker 01

  I guess like what is a better way? To kind of like approach that and just be more still have passion for the business, but like remove the emotion out of like the decisions.

• 34:20Alex Hormozi?

  I mean, this just gets into like anxiety management, which is, you know, for me, I mean, I I talk about my philosoph, you know, philosophical views because I just remind myself that I'm a little monkey on a tiny little rock in the middle of a galaxy that no one gives a shit. And I will die and I'll be forgotten. And so the fact that my page isn't converting that well just doesn't bother me that much. And so that's how I get around it. I'm just being really honest. So like, I mean, I I go through that mental loop de loop like probably 20 times a day. And it's like, right when I'm like, oh, I'm about to be upset. I'm like, oh, wait. Nothing matters. Okay, got it back. And so, I mean, that's, that's how I diffuse me. I think everyone's a little bit different. Some people work out, some people, you know, do kumbaya, whatever. That's just worked for me. But I think probably answering the question is like, what am I so afraid of? You have some emotional charge because you're afraid of something happening.

• 35:05Alex Hormozi?

  And so a lot of times it's like the fear of it is a lot greater than what the reality of it is. Because the absolute worst case scenario in this entire thing is that you go back to practicing. Your worst case is you're a rich dentist.

• 35:18Alex Hormozi?

  Right? Like, what are we talking about? You know what I mean? So it's just like, the only upset I have is that my greater ambition doesn't achieve. But like, I will be able to eat and live in the best neighborhoods and travel whenever I want to make my own schedule. Like, that's guaranteed for you.

• 35:32Alex Hormozi?

  It's just, you know what I mean?

• 35:33Speaker 01

  I just don't want to go back to practicing dentistry.

• 35:34Alex Hormozi?

  I get that. Yeah. But I'm saying like, the worst case is that, which is like, you know, there's people who have it a lot worse.

• 35:43Alex Hormozi?

  I'm just being real. Like, that's how I think about it. But yeah, I mean, if your wife brings up the data, then it also might be just like, hey, when she brings it up and how she brings it up, it'd probably just be a conversation, which is okay. If I just get off stage and I just did a big pitch and then you're like, that sucked, not the right time, right? Like, like, give me a cool down period. And if it's like, hey, when you have bad news, by the way, for everybody, humans have like a really, really big capacity to take bad news if you brace them. So they train doctors on this, and you might know this, but like, they train physicians on like, if you have to say like a family member died or they have cancer, there's some sort of big bad news, they train the doctors on how to get someone to brace themselves and say, hey, I have bad news. You might want to sit down for this, right?

• 36:25Alex Hormozi?

  And so people are like, okay, I'm ready. And so training her on how to give you news would be really valuable.

• 36:32Speaker 01

  Thanks.

• 36:33Alex Hormozi?

  Hey, Alex, my name is.

• 36:35Speaker 01

  J C, I have a company called Master Injector.

• 36:37Alex Hormozi?

  Right.

• 36:38Speaker 01

  We provide education and training to people that work or practice at a med spa. We've been doing live events.

• 36:43Alex Hormozi?

  You have three med spas here today.

• 36:44Speaker 01

  So on the live event side, we charge about $4,000 for the weekend. And then we're doing virtual events. And now we're trying to leverage, we have about 10,000 followers on Instagram, about 10,000 through our database. And we want to do a membership model that's more of an online education. I was curious to see how you would approach this for the strategy to start this membership.

• 37:03Alex Hormozi?

  So I think selling workshops on the front end is really good because people understand it. They get a big deliverable. The reason I do it, right, is you can control about the experience, make sure, you know, over deliver and everything. And I think that I would probably sell it on the back end of that. So I'd be, front end would be the workshop, the back end would be the membership. And how long is the, two days? The workshop? Okay, yeah. With two days, you could sell the membership. And then we should have to think about what are the benefits of being a member? You can have the continued education, but no one's going to really watch it anyways. And so I like the, kind of like magical things. Like, the reason I like that insurance thing so much is that they don't have to do anything and they just get this benefit. I would imagine injectors also have like, they have hard costs, right? They have to buy the stuff, Moderna or whatever, right? And so if you did group buying for all of those injectors, you could improve their margins.

• 37:48Alex Hormozi?

  And so basically, if I know the average injector, I can save them $5,000 a year on the hard costs that they're going to have for their injectables. Then my membership at $2,000 a year, they'll never cancel because why would you? It's like you can be a solo practitioner or you can be with the co-op. And the difference in price is obvious. And we'll give you insurance in case you inject somebody in the eyeball. And then those are probably my two major benefits. You can include the, the education piece. But I would say that like, education mostly is commoditized. I think those other things would be more valuable to people because it's like, this covers your downside. This drops your bottom line, for sure.

• 38:23Speaker 01

  So value stack can make it sticky?

• 38:25Alex Hormozi?

  The discount would make it sticky. Basically, as long as they're practicing, they're going to buy through your, your reps that you can negotiate down the rates for because of volume. Because you have a lot of people, right, who are doing the injection. Thousand customers. Yeah, so you have like, think about that kind of volume compared to a single men's spa. You have a ton of injection volume that you're buying or that is being bought in your community. I would go to Moderna or whatever and then be like, hey, I represent a thousand injectors. Can you give me thirty percent off or whatever? And then with that, you can put your markup on or you just pass that savings on in general. And then you just like Costco, so they pass all the savings on and they just charge a membership. So just be that for the injectors, add the insurance on top.

• 39:06Alex Hormozi?

  And then the baseline can be the continuity with the education and you sell that on the back of the workshop. Okay. Makes sense? Yeah.

• 39:12Speaker 06

  I own a brick and mortar health and wellness business. Patients have to come in on a repetitive basis, twenty mile radius for marketing. So what I learned yesterday is obviously your ad spend, you want to get to about a million a month for that one channel. Um, so right now we're about a six ROAS.

• 39:28Alex Hormozi?

  Cool.

• 39:28Speaker 06

  So obviously I want to keep putting money into that.

• 39:31Alex Hormozi?

  Yeah.

• 39:31Speaker 06

  At what point do you say, okay, because your ROAS is going to go down as you put more of that money in. Because you should have such a limited market.

• 39:38Alex Hormozi?

  Yeah.

• 39:39Speaker 06

  At what point do you say, okay, now I need to change or add in other channels? Is it like a three to one? Is it?

• 39:45Alex Hormozi?

  Honestly, if you're at six to one and you're, are you selling high end health and wellness stuff?

• 39:48Speaker 06

  We do regenerative medicine.

• 39:49Alex Hormozi?

  Yeah, I think that you're, something's wrong. Because most of the guys that I know who are in that space just murder it, especially if you're local. I would basically keep tweaking the model until I'm getting like fifteen or twenty to one. Because when you're selling high ticket local, like you're going to get the best return. And like, if I had to bet on one business that I for sure would get the highest ROAS for. It would be a pseudo medical business for local. Like you can absolutely just print for those businesses. And so are you, so you're doing meta ads right now? What's the process for getting lead to close?

• 40:19Speaker 06

  Basically on meta goes to a landing page. I have go high level running.

• 40:23Alex Hormozi?

  Sure.

• 40:23Speaker 06

  I have VAs that reach out, get them scheduled.

• 40:25Alex Hormozi?

  Mm hmm.

• 40:25Speaker 06

  Uh, they pay a deposit, come in. And then basically from when they come into the office until close, that's pretty much a fixed. I mean, we, we pretty much know how that close rate is going to be.

• 40:35Alex Hormozi?

  Okay. So what's the average ticket?

• 40:37Speaker 06

  Fifty six hundred.

• 40:39Alex Hormozi?

  Why is CAC so high?

• 40:40Speaker 06

  I don't know.

• 40:41Alex Hormozi?

  Yeah.

• 40:42Speaker 06

  I will say this, we don't get a lot of referrals.

• 40:44Alex Hormozi?

  Okay. Do you have financing?

• 40:46Speaker 06

  We do.

• 40:47Alex Hormozi?

  Huh.

• 40:48Speaker 06

  Average income in the area is fifty six, or yeah, fifty six thousand. When we first started, it was good because we were just doing chiropractic, two thousand dollar care plans for a year.

• 40:56Alex Hormozi?

  Yeah. And you like the neuropathy and all that stuff?

• 40:59Speaker 06

  Yeah.

• 40:59Alex Hormozi?

  Yeah, I got, I know the.

• 41:00Speaker 06

  Blueprint stuff.

• 41:01Alex Hormozi?

  Yep, got it. Yeah. It might be, and I don't like saying this because I never like doing outside, outside forces, but you might have like a, a ten out of ten model and like a two out of ten city for it. You know, I mean, there's a reason that Barry's Bootcamp is only in fifteen markets or whatever. It's just because that's the market that's going to sustain that price point and that margin. I mean, the fact that you're getting six to one is great. Are you, do you do the diabetic dinners and like all that stuff or no?

• 41:22Speaker 06

  Yeah.

• 41:23Alex Hormozi?

  So, yeah, I mean, you have the acquisition system. I don't know if your close rate is the thing that's suffering, but I mean, it seems like you have that down. I'm guessing you're basically trying to pull, squeeze blood from a stone, is that there's just not enough of those high ticket buyers in an area where the median income's.

• 41:38Speaker 06

  Yeah, and a lot of these people have low income, low credit scores, sometimes they don't.

• 41:42Alex Hormozi?

  They can't get a financing anyway, so you have to down sell. So like, then you down sell the five hundred dollar thing.

• 41:47Speaker 06

  And one of the things that I think is an issue why we're not getting referrals, that we do have to down sell.

• 41:50Alex Hormozi?

  Yeah.

• 41:51Speaker 06

  So like, let's say they say yes to a ten K care plan, but they only get approved for eighteen hundred. We can only do like one PRP. They're not going to get the results. They get pissed off because they only have five thousand in their bank account. They just paid eighteen hundred.

• 42:03Alex Hormozi?

  Yeah, I mean, there's a reason that brick and mortar is, they're so specialized in terms of picking markets. Like, it's super important. And I'm, I'm guessing that you started this business, then you went down the rabbit hole of how do I make more money in this business? You bought stuff that gave you the sales system. You made a lot more money. And then you're like, okay, well now what do I do? So I think next steps would probably be accept the fact that that, that's particular location might not be like, I mean, it, it makes money, obviously. So I would try and double down on how can I make this thing completely turnkey and automated without me? I would test Facebook ads in twenty, fifty other markets, spend twenty grand testing, and then just look at your lead costs across those markets. And then you'll be like, oh, this thing is a fucking pocket. And then you can put your next location there.

• 42:47Speaker 06

  Got it. Okay, thanks.

• 42:48Alex Hormozi?

  Yeah, no worries. Basically, I'm a real estate coach. I took your gym launch. Why'd you go to GymCon? Honestly, gym.

• 42:55Speaker 06

  Secrets changed my life.

• 42:56Alex Hormozi?

  Oh.

• 42:56Speaker 06

  I applied it to real estate coaching. I productized the entire thing. Eight thousand dollar high ticket. Absolutely amazing.

• 43:01Alex Hormozi?

  You guys should read the book. It's pretty good. It's just actually how to do a coaching business, not a, I mean, a gym is a coaching business, but anyways.

• 43:09Speaker 06

  Yeah, so I took the entire book. I had a ninety nine dollar community. The term was absolutely crazy. Developed a high ticket. It's been absolutely awesome.

• 43:16Alex Hormozi?

  Great.

• 43:16Speaker 06

  Uh, and four months ago, I did an annual conference. We had eleven hundred people in New York City, sold out, absolutely amazing. Increased my conversion for all of my sales because of brand association, all that stuff. The issue is conference made no money whatsoever. So we're already.

• 43:30Alex Hormozi?

  So with the pitch from the event, you made no money?

• 43:32Speaker 06

  I actually didn't have a pitch.

• 43:34Alex Hormozi?

  Okay.

• 43:34Speaker 06

  Yeah, so, so that's, yeah, so for the, for the next conference now, it's like, what do I sell from stage? Because I saw GymCon, the offer was amazing. Do I sell my high ticket? Do I sell the community? That's kind of where I'm stuck on.

• 43:46Alex Hormozi?

  So you have your eight K thing, right?

• 43:47Speaker 06

  Yeah.

• 43:48Alex Hormozi?

  What do they get for that?

• 43:49Speaker 06

  Uh, it's an eight week transformational bootcamp. They get every single system they need in their business to go from zero to forty K a month.

• 43:56Alex Hormozi?

  Okay, so either you can just sell that from stage, but most times, if you're gonna sell something from the stage, you want it to be higher. You want it to be twenty five K or, or higher. It's usually like twenty five, thirty five K is kind of the sweet spot for most, most stage pitching. If you're like curious, like, why was your thing fifteen? It's because this is the last week and we're just trying it out. It'll be twenty five next week. Twenty five to thirty five K.

• 44:16Speaker 06

  Okay.

• 44:16Alex Hormozi?

  How many days is it?

• 44:17Speaker 06

  Two days.

• 44:18Alex Hormozi?

  Yeah.

• 44:18Speaker 06

  There's a networking event, so it's kind of like a two and a half.

• 44:21Alex Hormozi?

  I like end of day one, obviously, and then just make a soft toss, you know, like day two.

• 44:26Speaker 06

  Okay.

• 44:27Alex Hormozi?

  Um, for it. And the big thing is, um, that's cool with events is that you'll be able to have your customers there. And so you can show social proof live, which is more compelling than anything. And so do a panel before you do the big pitch of like, look at Realtor one, two, three, four, five. And then they'll be like, holy cow, this guy's awesome. It's just more compelling.

• 44:46Speaker 06

  Cool.

• 44:47Alex Hormozi?

  When I did GymLaunch, I did delivery events the same way, and I never sold at our events, and they were just, I didn't even break, you know, I just lost money on them. That was it. And so what I got from those events was just proof. And so, for everyone, if you, if you're not doing events for your business, I think just about any business can do events. Don't go to hotels, go. To an event space, it's a thousand times cheaper. But also, the main thing you can get out of it is marketing material. And so, but part of the reason that we were able to sell Gym Launch. So obviously, Kale was able to go in the ads. But eighty percent of the winners that we had from our ads were just customer stories. And so, we were able to extract as many customer stories in person from those events. And that is what more than paid for the events in terms of long tail.

• 45:31Alex Hormozi?

  And so, we had whatever, three or four events a year that we held. We would collect as many testimonials as we could from those events. And then those became our entire ad creative strategy for the next 12 weeks. Until the next event. And so, they got pretty, pretty good at it. The social proof, the brand, absolutely amazing. The thing is that the event still has to be banger. Like, you always want to still do that, but like, there's always going to be people who are more qualified or want more. It's like, you just want to make the offer for them. Cool. Cool.