Your Best Leverage Is Knowing Your Customer | Ep 900

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.

• 0:02Alex Hormozi?

  You knowing who your customer is is going to be data that you absolutely have to have, no matter what. And so why would we delay something that's going to give us so much leverage on our messaging, our offer, our channels? Like picking the customer is the first and most important thing that you can do in a business. And then your offer comes from the customer.

• 0:23Alex Hormozi?

  Next caller is Anne. Okay, so you're on Hermosy hotline. Let's rock and roll. So you've got $200,000 per month in revenue?

• 0:31Speaker 01

  Yes.

• 0:32Alex Hormozi?

  All right. Ads been zero. Industry is medical. Men's sexual function. Ooh, this might be spicy indeed. Men's sexual function. Okay. And then your offer is lifestyle, stem cells. Okay. So you're doing like, yeah, you're doing full like injections and all sorts of stuff. Okay, cool. And then we've got constraint is needs more qualified leads. Okay, are you a doctor?

• 0:53Speaker 01

  Yes, I'm a medical doctor and we have a medical clinic that focuses mainly on sexual restoration. And yeah, we do stem cells and also shock weight therapy and multiple medical treatment along with hormone replacement therapy and peptide therapy.

• 1:10Alex Hormozi?

  Oh, okay. So is this brick and mortar? I'm guessing?

• 1:13Speaker 01

  Yes.

• 1:14Alex Hormozi?

  Okay, got it. Where are you out of?

• 1:15Speaker 01

  Virginia. It's right outside of DC.

• 1:18Alex Hormozi?

  Fredericshburg? Okay, cool. So, okay, so talk to me. So what's the, what's the issue? You want more leads?

• 1:24Speaker 01

  Yeah, so we have, all my leads come from my YouTube channel and also word of mouth. And we have 150,000 subscribers in YouTube channel and we have an application funnel through there. But we're, we're getting leads, but we're, when we're, and our team converts a 65%. But we're not getting the quantity of high of qualified lead that can afford our services ranging from 15,000 to 25,000 dollars because I mean, they get result within five days. You know, we have a great offer. We're doing everything we do.

• 2:00Alex Hormozi?

  The nice thing is they can tell very clearly whether, whether it works or not.

• 2:04Speaker 01

  Yeah, exactly.

• 2:06Alex Hormozi?

  Do you do before and after pictures?

• 2:07Speaker 01

  We want to get more qualified. Say that again?

• 2:10Alex Hormozi?

  So do you do before and after pictures? I'm joking.

• 2:12Speaker 01

  It's kind of hard to do before and after picture for sexual function.

• 2:16Alex Hormozi?

  I'm kidding. Okay.

• 2:17Speaker 01

  Well, we have testimonials.

• 2:19Alex Hormozi?

  Yeah, sure. Man, look at that thing. Just triumphant. Okay, got it. So.

• 2:26Alex Hormozi?

  You need to get more leads. YouTube's the primary channel. And people who are coming in who are pop, like, do people fly to you?

• 2:32Speaker 01

  Yes. We have people coming in actually international. We're having somebody from Hong Kong.

• 2:36Alex Hormozi?

  What percentage?

• 2:37Speaker 01

  Somebody from the UK.

• 2:38Alex Hormozi?

  What percentage are local versus international?

• 2:41Speaker 01

  Oh, I mean, US is probably like 90%.

• 2:44Alex Hormozi?

  Oh, no, I would like if you're saying US, I'm gonna say most people that are traveling to you. Like if, I mean, most people are traveling to you.

• 2:50Speaker 01

  Yeah, I would say probably that would be 70%. Yeah.

• 2:54Alex Hormozi?

  Done. Good enough for me. Okay, got it. So how many pieces of YouTube content are you putting out per week?

• 2:59Speaker 01

  I only do two long form videos.

• 3:02Alex Hormozi?

  Yeah.

• 3:02Speaker 01

  And so my, then my team cut off the long form video into shorts.

• 3:07Alex Hormozi?

  Okay.

• 3:07Speaker 01

  Uh, which we post daily.

• 3:09Alex Hormozi?

  Yeah.

• 3:09Speaker 01

  That's it.

• 3:10Alex Hormozi?

  Got it. Do you have the five CTAs that I mentioned earlier? Of like those five places that you can do cost of action? Cause that's like an immediate thing you can do that can just journey more leads. So one third of the way through videos.

• 3:21Speaker 01

  We've been doing that.

• 3:22Alex Hormozi?

  Okay.

• 3:24Speaker 01

  Yeah, we've been doing that.

• 3:25Alex Hormozi?

  Okay, got it. So, but you're doing all five?

• 3:27Speaker 01

  Uh, yeah. As of yesterday, we were doing four, but now we're doing five.

• 3:32Alex Hormozi?

  Okay, got it. There we go. Hey, I'll take it. I'll take it. A little, a 20% improvement or 25%. Okay, so, I mean, you, you kind of have, you're, you're in a, you basically have two paths, right? So path one is how can we, like, I don't think you necessarily need to make more content like you could. But I would rather you, like, how much time do you spend prepping the packaging? And the thumbnails and the headlines for the content that you make?

• 3:55Speaker 01

  Oh, I don't do that. My video editor does that. And I think he probably spent maybe, uh, like eight to, maybe eight to 16 hours, cause he does, he, he, he does, uh, do two a week. So I would just say maybe two days.

• 4:11Alex Hormozi?

  Well, on the prep or on the post?

• 4:17Speaker 01

  Prep and post. So I produce like four at a time and he does, he just publishes like, you know.

• 4:24Alex Hormozi?

  Yeah. So every other week you do four videos?

• 4:26Speaker 01

  Yeah.

• 4:27Alex Hormozi?

  Got it. Okay. So I'll tell you this, like you're, you're a more experienced YouTuber. It's likely that the biggest improvements that you're going to get are on, on better rather than more for where you're currently at. And it's going to come down to like, I mean, some of the tools I, I said yesterday, like oneoften.com is a good tool for looking at packaging. And saying like, how can we look at other outlier, similar outlier packaging for videos that are either in the space or adjacent to it? And then how can we match our thumbnail headline and introduction? Do you, do you script out your introductions?

• 4:57Speaker 01

  Yeah.

• 4:57Alex Hormozi?

  You are scripting your introductions?

• 4:59Speaker 01

  Yeah.

• 4:59Alex Hormozi?

  Yes?

• 5:00Speaker 01

  Uh, yeah, I, I actually use like AI to help me with the hooks and the intro. But most of it is really, uh, my content that I put out. And the, the one other thing about our channel is that it's grown because I would talk and generalize like ED and I, I give everything away.

• 5:18Alex Hormozi?

  Yeah.

• 5:18Speaker 01

  So now I really, I, I, the last three videos, I've been making more for entrepreneurs and executives because I wanted to target more of, uh,

• 5:25Alex Hormozi?

  Yeah.

• 5:26Speaker 01

  high, uh, high ticket, uh, client. And our views like absolutely plummeted down to like hundreds instead of thousands.

• 5:33Alex Hormozi?

  Hmm.

• 5:34Speaker 01

  Um, so that, that was one of the things I wanted to ask you, was that something we should be worried about? And which kind of target the message more for, you know, high, high ticket, uh, clientele?

• 5:45Alex Hormozi?

  So I'll tell you how I would make an adjustment or a test like this. So I never want to threaten my core business. And so if I have two videos of a certain style and packaging that are working, I don't want to break that. Cause like all of a sudden you could, revenue could cut in half and that would be not fun. Right? So I would prefer you keep your two videos a week that are your, you know, kind of standard wider, et cetera thing. And then do an additional video that's going to be the new thing. Because in that way you can guarantee that you're going to make more. And that way you can test it and not feel like you're, you know, risking your, you know, risking the whole business to make this test. Cause like that's, it's the primary way of getting, you know, leads for you. And so I would really not want to risk the entirety of my, my business for a test. That's a big test.

• 6:27Speaker 01

  Right. I love that. I can definitely do that because I was thinking about doing more, but you said do better.

• 6:36Alex Hormozi?

  I do think that you can do better, but I think that if you're going to run this test on trying to attract higher level customers, I think that I would just add that in addition to the two videos you're doing. So then they'll bump you to three and you're going to probably get benefits from both more, more volume. And I still think and maybe your video editor can watch the replay of this, but like, I would strongly recommend scripting out both verbally, and this is the part that people miss visually, because you have a very physical profession, obviously, like you can't show certain things on your YouTube channel, but like you in a, you know, a smock or not smock, whatever, the white lab coat, right? You got the, you got the coat and you've got some tools and some machines and you've got some of those props that look like body parts behind you. I think all of those things kind of set the frame and proof, promise, plan. I don't know if you are using that as the setup for the introduction, but proof, promise, plan. And if you want, you can introduce pain in there

• 7:21Alex Hormozi?

  as well as kind of our four step way that we introduce all videos. And so I'd make sure that I have a sentence for each of those Ps. And if you have a picture, which kind of gives you a visual roadmap of what they're going to get, I think that that will also likely further aid in retention. So those are kind of like the quote better things. And you can do that for all three of the videos you're going to make. But number one is you're going to go from two to three. The third one's going to be experimental. You're going to tighten up and script the introductions and the packages should be picked from outliers rather than just like something you find interesting. Like we already know that this packaging, this, the way that this image and the headline work are likely going to, to convert.

• 7:56Speaker 01

  Yeah, I love that. That's, uh, that's really good. I, uh, what, what do you think about advertising on like private jets and so forth? I would advise to do that, uh, to attract the clientele that we want.

• 8:10Alex Hormozi?

  I mean, you can try it. Again, I would just put that in my experimental bucket.

• 8:13Speaker 01

  Okay.

• 8:14Alex Hormozi?

  Yeah. I mean, if you fly private as is, then yeah, just on your next private, you know, on your next flight, just record.

• 8:19Speaker 01

  Okay. Yeah, no, I, I love that. So make more content, but make better content.

• 8:23Alex Hormozi?

  Yeah.

• 8:24Speaker 01

  And

• 8:24Alex Hormozi?

  And add the third one.

• 8:25Speaker 01

  We have a funnel. Can I ask you one more question about the funnel?

• 8:28Alex Hormozi?

  Go for it.

• 8:28Speaker 01

  Now, the funnel that we had, I was listening to you at talking to another lady and our funnel is actually an application funnel through a book, a call with our sales team. But if we are looking at more, uh, attracting more, uh, premium buyers, should we still continue doing that funnel or should we open up more on the higher part of the funnel?

• 8:50Alex Hormozi?

  I think you should drive more into like, just put more in. This is why we're gonna do it like, I don't think you should like, you're converting 65% of your leads. Your conversion process is not the constraint of this. So maybe there's things you can improve, but I, that's not where my focus would go. My focus would 100% be on making more and better content on YouTube. I do think that like, I would say like, do this experiment, improve the packaging, the hooks upfront. The next thing would be running ads, but I just feel like the nature of this business is so like trust driven. That I think organic, I mean, I think you, I mean, you've already gotten the success you have because I think you, you started with the right strategy. I really just wanna see like, how do you get to a million views, sorry, a million, a million subscribers on your channel? Like, that would be like my mission. How do we get, how many views a month are you getting?

• 9:31Speaker 01

  Yeah, how many views? Well, it depends. If we put out a pretty good one, it's probably about 10,000, uh, that's our usual.

• 9:39Alex Hormozi?

  Yeah.

• 9:40Speaker 01

  Depending on the video, but the last three, uh, I talked about executive and the intersection with sexual health. We got like hundreds.

• 9:48Alex Hormozi?

  Yeah, I, I, I think that you have a ton of room. If you're getting 10,000 per video, I think you have a ton of room for improvement. Like especially based on the nature of what you have, like, like you, like you could for sure be at 100,000, 250,000 per video. For sure. No question.

• 10:03Speaker 01

  Well, thank you. Yeah, we have about 10 videos that are almost a million.

• 10:07Alex Hormozi?

  Yeah.

• 10:07Speaker 01

  Right now, so, um, yeah. So we may lean in more on those topics.

• 10:12Alex Hormozi?

  Okay, rock and roll. Love it. Yeah, just repeat your, repeat your winners. All right, thank you.

• 10:16Speaker 01

  Thank you.

• 10:17Alex Hormozi?

  All right, talk soon.

• 10:18Speaker 01

  Appreciate it.

• 10:19Alex Hormozi?

  Yep. Bye bye. Okay, okay. So Mike, hey, 16, I do AI automation, helping business save time, et cetera. Uh, I currently get leads through Facebook, Instagram and email outreach, advice on scale, volume only. Thanks. Yeah, dude, you're doing, uh, you're doing too much. You're doing like, pick one of those channels to start out with and just do more on that one channel. So I think you're probably spread too thin if you're like trying to sell, trying to market, trying to deliver to customers. And you're also on three different channels. I would say do more, but on one of those, you can get better. Cool. Sweet. Rock and roll. What acquisition system would you, if you would sell ClickUp, project management systems for marketing agencies, currently doing 15,000 a month? I'm guessing you have a pricing issue because someone who's going to be implementing a CRM is likely already doing, like if they have so much work, they have to have like a project management system.

• 11:04Alex Hormozi?

  You probably need to be charging way more. And so either you're going after the wrong customers, but it doesn't make sense because if you're actually implementing the stuff into their business and like, they're probably bigger customers. So I think you're probably mispriced, number one. I would imagine Upwork is also probably not the best place to find customers because it's like people who are like absolutely the cheapest. So I think you're, I'll bet you that your mindset is super skewed to like Upwork leads who are like cheap as hell. I would be doubling down on cold email and be looking at like $6,000 plus, you know, per month retainers and probably selling projects that are in like the,

• 11:37Alex Hormozi?

  we did one implementation like this. Well, how much did ours cost? Didn't we implement some sort of project management system inside of media? Forty. So ours was forty. So to give you an idea. So that was like just for one project and they had more than one customer. All right. So you probably are just like wildly undercharging and I think cold email would be the best way to double down on. Hopefully that helps Max. All right. McKinsey, you are on her most hotline. Okay. Monthly revenue is a hundred thousand dollars. Rock and roll. Good. You got cold outreach. Got it. You're doing your custom apparel. Okay. Custom apparel. Interesting. Offer is apparel for colleges and college organizations. So like fraternities and stuff?

• 12:18Speaker 02

  Yep.

• 12:19Alex Hormozi?

  All right. All right. Colleges. Okay. And then the constraint is cold outbound works economically, but too many unqualified leads. Okay. So does that mean that we're, how are you getting your leads right now?

• 12:31Speaker 02

  Just scraping. So basically we're just trying to find contacts for these organizations primarily through like Instagram. And then we just reach out to all of them cold.

• 12:40Alex Hormozi?

  Okay. What's the model?

• 12:41Speaker 02

  As far as like, how do we make our money? So basically we handle the design side for all the apparel. And then we outsource the manufacturing. And so we're just kind of act as a middleman and mark that up. And so on all of our orders, we average about 35% gross margins.

• 12:58Alex Hormozi?

  Yeah. So is that hundred thousand dollars a month your slice? Or is that that's top line? Okay, got it. So you got thirty five ish of gross margin left over?

• 13:06Speaker 02

  Yeah.

• 13:06Alex Hormozi?

  A hundred, okay.

• 13:07Speaker 02

  And so what's happening when we reach out to these different organizations is basically it's very hard to segment between who we think is going to end up being a big customer with like a high lifetime value. We have some customers who are going to spend, you know, thirty thousand dollars a year with us versus others that are going to spend fifteen hundred dollars a year. And it's just really hard for us to identify like what are the markers that make a customer i- in which group, you know?

• 13:34Alex Hormozi?

  Yeah, so, yeah. And you've and you, is there a reason that, I mean, you focus on colleges just because they were easy to reach out to decision makers?

• 13:43Speaker 02

  Yeah, so that that was kind of, that was going to be the second part. Basically, what I found so far is like we're reaching out to colleges. We've got the process really dialed in, so we have like a pretty good conversion rate. Like it, it's easy for us to acquire customers. But what I actually noticed is that's what we focus our outbound on. But the AOV for the colleges is maybe like twelve, fifteen hundred bucks. We have other customer segments that are spending way more per order and per year.

• 14:06Alex Hormozi?

  So let's talk about those.

• 14:07Speaker 02

  But we just haven't really figured out the acquisition as much.

• 14:10Alex Hormozi?

  Okay, so what are those segments?

• 14:11Speaker 02

  Construction is a big one and also summer camps. But the thing with those, I kind of run into the same issue because, you know, I I might reach out to two construction companies. One of them, they don't order like any apparel and then another one orders like, you know, fifty thousand dollars a year. So I'm still just trying to figure out.

• 14:28Alex Hormozi?

  But so I just want to reframe it a little bit for you. So if you know that like, okay, well, construction seems like on average they're worth like twenty five times more or something like that. That's on close to right?

• 14:38Speaker 02

  Yeah.

• 14:39Alex Hormozi?

  Okay, so if you have some like duds and some good ones, but they're worth twenty five times more, then I'd rather just do the duds and good ones play with in general, people that are worth twenty five times more.

• 14:49Speaker 02

  Yeah, because I mean, I'm running into the same issue either way. So it's just basically targeting higher value customers.

• 14:55Alex Hormozi?

  I'll say it differently like. This is a feature, not a bug. Like this is just part of what what you have to do with outreach and like list segmentation and list list enrichment is like part of what makes outreach effective.

• 15:07Speaker 02

  Yeah. So do you think like basically on the last live stream, you know, I kind of went through the five ends. And I realized it is data that's holding us back from being able to scale.

• 15:16Alex Hormozi?

  Okay.

• 15:16Speaker 02

  So I've already started, you know, having my devs like build out different stuff.

• 15:20Alex Hormozi?

  Okay.

• 15:20Speaker 02

  To help us track this data better. And I'm kind of wondering like, should I be focusing a ton of my time on trying to figure out like and identify the segments?

• 15:30Alex Hormozi?

  Yes.

• 15:30Speaker 02

  You know, more specifically, like what makes this construction company spend more money and or or should I be focusing on volume?

• 15:36Alex Hormozi?

  No. Get the data right. Like if you take a longer perspective on the business, right? You knowing who your customer is, is going to be data that you absolutely have to have, no matter what. And so why would we delay something that's going to give us so much leverage on our messaging, our offer, our channels, like like picking the customer is the first and most important thing that you can do in a business. And then your offer comes from the customer. Like the one regret that I have in the offers book is that I would have added in uh your first customer, which is uh one, I think the first chapter in lost chapters. I would have added that as the first chapter of the offers book. Because so many people just like you have to start with the customer and then from the customer, we reverse engineer the offer.

• 16:15Speaker 02

  Yeah. And and that's like one of the reasons why we target uh like fraternity and sorority is because on a per unit basis, like they spend more per shirt. But that the you know, they order fifty shirts at a time versus five thousand.

• 16:29Alex Hormozi?

  Yeah. So we just have to look at absolute profit per order. And then I would just like that's that should be like North Star. So what is it? So if we have, you know, fifty shirts with, you know, fifty percent margins versus five thousand shirts with twenty percent margins, we'd still rather have five thousand because you're a middleman anyways.

• 16:46Speaker 02

  Yeah, it doesn't take any more work.

• 16:47Alex Hormozi?

  Right. So like, yeah, right. So like, let's go sell the bigger people and expect that we're going to have some that are smaller. But if we're shooting for five thousand orders, your your small ones all of a sudden are going to be five hundred orders instead of fifty.

• 16:59Speaker 02

  Yeah. Yeah, that makes sense. And I, you know, honestly, like even though we don't have the data yet, that's kind of after the last couple of calls.

• 17:07Alex Hormozi?

  Yeah.

• 17:08Speaker 02

  I realized that is the direction we need to go in.

• 17:10Alex Hormozi?

  Yeah.

• 17:10Speaker 02

  I'm trying to figure out how we should make that transition because you know, it's like, you always say like more than better than different. And I feel like I, I, I could be doing more and better, but I'm choosing to do different because it's just a better model.

• 17:22Alex Hormozi?

  Yeah. Well, you're, I mean, you're reaching out to me. So I mean, I, I, I make these rules, I can break them. So you're in an instance where like, unless you had a way that it was like, I'll say differently, like you could for sure double outreach and the business would probably double. And it's just like, I think there's just so much more meat in these other industries. Cause like, I think you'll, I want to see you cap this out. Cause like you could for sure become like, oh, maybe, maybe I'll think about like this. These are the conditions under which I would stick with what you're currently doing, right? I would stick with what you're currently doing if you knew that those college customers would become lifetime customers. If you knew that every single one of those college organizations would just always order, you know, fifteen hundred dollars a year worth of gross profit.

• 18:03Alex Hormozi?

  And you just knew that you were keeping eighty to ninety percent per year, then this business would just continue to stack. And then over time, you build this kind of like monopoly within the colleges of like the default T-shirt guy, right? That would be the condition under which I would, I would continue to pursue the colleges. And maybe you could just say like, okay, well, how do we retain revenue better? How do we get these people to reorder? Can we reach out to them more regularly so that they're buying four times a year instead of two, et cetera, et cetera. Like that would be that path, but you were.

• 18:29Speaker 02

  I would say that we're kind of in that situation.

• 18:31Alex Hormozi?

  Okay.

• 18:32Speaker 02

  I mean, we, we've been doing this for a few years now. We don't have like really any turn. Like our turn level is like extremely low and we're very proactive. Like you said, trying to get people to order more. Like we're trying to bring up the order frequency, bring up the AOB. But at the end of the day, it's like, I could, I could probably just leave this running, like leave my operator just continuing that side of the business.

• 18:51Alex Hormozi?

  Yeah.

• 18:51Speaker 02

  And then maybe shift my time towards focusing on these other, you know, targets.

• 18:55Alex Hormozi?

  Yeah.

• 18:56Speaker 02

  Building up that acquisition system.

• 18:57Alex Hormozi?

  I hear you. I would do the other thing that's bigger. I'll be honest, I would do that. And that's normally not the advice that I would give because like the for sure bet like if I had to say, how do I guarantee that you go from a hundred K a month to, you know, 250 K a month? I would say, dude, just triple what you're currently doing. That would be for sure my bet because you're keeping the customers. You have, you know, gross profit that's there and it'll just continue to stack. That would be my, like, if we had to bet. But if you're like, I want to get to, you know, 20 million a year or something like, I don't know what your, what are your goals? I should have asked that earlier. What are your goals?

• 19:28Speaker 02

  That's my goal. I'm trying to get to like 10, 20.

• 19:31Alex Hormozi?

  Yeah, then I think you just, you're gonna, you just want to get, you want to make, get paid more per. And it's the same number, it's the same level of work. Yeah. I mean, you, like, you could do more, but then we'd be asking the question, okay, how do we go from your current outreach level of volume to like, how do we truly, and I mean this truly, like, how do we actually do 10 to 50 times the outreach? Like, you could do that, that would be still probably less risk.

• 19:51Speaker 02

  It's not feasible with this target market.

• 19:54Alex Hormozi?

  Okay. Well, then if that's that, then if we go metrics and then market, which is the next M, right? Then, then I would rather go construction that's bigger whales, if that's the market that you feel better with. I don't normally say that, but I think that it's probably what makes sense. And here's, here's the great part. If you do it and you just fall flat on your face and you find out something that like actually makes construction suck, you could always just go back to the college and then just, and then say, okay, well, my, my for sure path of, of, of growing this business is like, I will 10x my outreach. That is your for sure path. You can always go back and do that. But if you have an opportunity where you can get literally, you're talking about 50 shirt orders versus 5,000, it's 100x leverage. Then I'm like, I really want to look at something like that.

• 20:33Speaker 02

  Yeah, that makes sense. And I guess like I just need to treat it as like a test. Like, I don't need to like shut down my business and start doing construction. Like,

• 20:40Alex Hormozi?

  God, no.

• 20:41Speaker 02

  You know, start building out another channel.

• 20:43Alex Hormozi?

  Yeah. I don't normally say this, but when you, when I see 100x difference and you're at the size you're at, I'd rather you. I'd rather you look there.

• 20:52Speaker 02

  Yeah, yeah, bro. That's like, that's what I'm thinking. Like, I've been thinking the same thing you're saying, but I'm like, oh, this goes against all the advice.

• 20:57Alex Hormozi?

  I know. I mean, that's why you called. That's why we're here. Cool. Feel all right?

• 21:01Speaker 02

  Yeah, all right. Sweet. Yeah, that's what I'm gonna do then.

• 21:03Alex Hormozi?

  Just don't burn down the existing business. Have your operator still run it. Make sure it's still good. The things that you want to make sure that you like, what are the things you want to validate for the new market is you want to make sure as fast as possible that they reorder. As long as you have that, then you're gonna have revenue retention, you're good to go.

• 21:15Speaker 02

  Yeah, that makes sense. I mean, okay, let me ask you this. This is when I view this business, like, the reason that we're able to penetrate the college market so well is because, you know, we target all of our marketing around that. Like, if you go to our website, that that's the avatar we're trying to serve.

• 21:31Alex Hormozi?

  Yeah.

• 21:32Speaker 02

  I've considered basically building out, maybe have like different websites for different niches. So like, I just replicate everything we did for college, but into construction and kind of serve a whole nother avatar. I don't know if that makes sense, but like, build a customer journey around them. And I just, I don't know if that's maybe like not the smartest way to scale is doing like more.

• 21:54Alex Hormozi?

  No, I don't want you to do like many different verticals. I definitely, no, no, I want you to commit to one of these things. And so we're like, this is a potential hundred X in terms of leverage for this type of avatar, which is the only like, if you were like, they're worth three times as much, I'd be like, screw it, dude. Just do more of the college thing. When you said 50,000 in order versus 1500, like, that is a very big difference. And it's the same level of work for you. So at that point, that's why I'm like, I'm like, it is only because of the unique characteristics of that thing. The only other thing that we'd want to make sure is that you have revenue retention there. Once you have that, there's more than enough construction firms for you to get to 20 million a year. No question.

• 22:28Speaker 02

  Yeah, 100%.

• 22:29Alex Hormozi?

  Okay.

• 22:29Speaker 02

  Yeah, that makes sense.

• 22:30Alex Hormozi?

  All right, rock and roll.

• 22:31Speaker 02

  But don't, don't spread it out. Like, focus my on someone.

• 22:34Alex Hormozi?

  Yeah, I don't want you to have like 100 verticals. That's not the point here. You like, you knew colleges, like, every one of these ones, you have different nuances, different acquisition things, different sales, like, you have to learn all that stuff again. But like, I'm, I'm only kind of like signing off on this because of the crazy difference in value and the virtually no difference in operational effort. So it's like, you don't have to relearn how to, how to be a middleman for shirt ordering. Right? It's like, it's the same thing. We're just targeting a different person. And then we only have to figure out one thing, which is how to acquire that customer versus the other. And once we have that, the rest of the business works the same. We make, you know, 20, 30, 40 times more. That's why I'm saying I think it makes sense.

• 23:08Speaker 02

  Yeah, that's exactly right. That is the only difference. All right, cool, man. That's perfect. That's your game plan.

• 23:12Alex Hormozi?

  All right, rock and roll. Appreciate you, man.