Before You Run Ads, Fix This One Thing First | Ep 964

Join Alex at the Live Scaling Workshop in Las Vegas: ⁠https://www.acquisition.com/o-vegas⁠ Many entrepreneurs think their market is too small, their customers are too broke, and their next best move is going national. They're probably wrong on all three. In this episode, Alex engages four educational business owners struggling to scale. The diagnosis and fix are the same across the industries. Fix internal issues and dominate the local market first before going countrywide. In this episode 00:00 A house flipper going national too fast 06:53 Motocross operator facing copycats and pricing wars 12:28 A real estate agent coach seeking to double revenue 15:48 Outsourcing vs hiring an in-house brand manager 17:51 Online coaching business dealing with a high churn rate More Value: Join The Live Scaling Workshop In Las Vegas: ⁠https://www.acquisition.com/o-vegas⁠ Download your free personalized $100M scaling roadmap in under 30 seconds: ⁠https://www.acquisition.com/roadmap?el=yt-alex-486r&htrafficsource=youtube⁠ Discover The Easiest Business I Can Help You Start (Free Trial): ⁠https://www.skool.com/hormozi⁠ Free Books and Video Courses: ⁠https://www.acquisition.com/training⁠ Get the $100M Book Bundle: ⁠https://shop.acquisition.com/pages/100m-book-bundle⁠ Follow Alex Hormozi’s Socials: ⁠⁠LinkedIn ⁠⁠ | ⁠⁠Instagram⁠⁠ | ⁠⁠Facebook⁠⁠ | ⁠⁠YouTube ⁠⁠ | ⁠⁠Twitter⁠⁠ | ⁠⁠Acquisition ⁠ DISCLOSURE Information shared here is for educational purposes only. Individuals and business owners should evaluate their own business strategies, and identify any potential risks. The information shared here is not a guarantee of success. Your results may vary. Copyright © 2026.

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

• 0:00Alex Hormozi?

  I've been in business for 14 years. Last year, our company's in total did over $250 million in aggregate revenue. I co-in the platform School, which is over 22 million users. And School's a platform that allows people to start and scale digital businesses. And so I have access to quite literally millions of data points on what makes digital businesses work and what doesn't. And so in this video, I'm asking your questions about how to scale.

• 0:19Speaker 01

  I sell dreams and I built an ecosystem to make it happen, essentially.

• 0:22Alex Hormozi?

  What does that mean?

• 0:24Speaker 01

  Let's get into it. I start off flipping homes.

• 0:26Alex Hormozi?

  Okay, thank you.

• 0:30Speaker 01

  I start off flipping homes and it got to a point where-

• 0:32Alex Hormozi?

  I saw hope and opportunity.

• 0:34Speaker 01

  It works.

• 0:37Speaker 01

  I flip houses, got to a certain point, we got about 30, 40 consecutively every year in the same market. Revenue is about four mil.

• 0:43Alex Hormozi?

  Okay.

• 0:43Speaker 01

  Adjusting out line itself. But then it got to a point, there's too much competition, we had a hard time being profitable per flip. So then developed a model where we convert competition to collaboration. Started contracting company instead of buying the product, becoming the product. And then started a coaching channel where I feed this ecosystem. Vertically integrated HVAC company, roofing company, dumpster company, contracting, the whole nine yards. So I'm teaching people how to do it and I'm giving them the process and how to do it. All that is different revenue drips for me. What's stopping me? I got too busy, too fast and owner operated for a long time, up until about three months ago. Harded COO, now transitioning a lot of the operations stuff onto her. Really, I don't know what the fuck I'm doing because like I'm trying to transition myself out.

• 1:28Speaker 01

  I don't know how to run a COO.

• 1:29Alex Hormozi?

  Why are you trying to transition out of the role or out of the company?

• 1:33Speaker 01

  A little bit of both. So out of the role because to be honest, I don't really care about the revenue growth factor. I care more about the impact. So I promise I made myself that I want to impact at least like 1 million lives before I die. So how do I do that? I'm not going to be doing flipping homes at a small scale. But I built a company that's so based in locality that I'm trapped within it. Because it's so local, my team is there, my resources, my companies. The coaching program only makes sense because it's local. But because of my market size, there's only so many people I can get consecutively every time. Unless I keep dropping prices, the opposite of increasing price. So what does that mean? I have to go to a national stage is how do I take this coaching at a massive scale? And that's where I'm stuck at because I'm too busy in the operations.

• 2:18Speaker 01

  And that's where Amy came in as a COO to kind of help me get out of it. And focus on the next phase of, you know, the origin story.

• 2:24Alex Hormozi?

  So dude, like I appreciate the national scale vision.

• 2:30Alex Hormozi?

  I think you could probably get to, given the ticket size and how you can monetize the customer in all these hundreds of ways, like the, the reason you would do that setup is so that you could dominate a local market. You're not dominating a local market right now. You're barely getting started. And so you could probably realistically get between Fayetteville and Raleigh, you could probably get to a hundred million a year.

• 2:52Speaker 01

  Just in that market alone?

• 2:54Alex Hormozi?

  Yeah. And I think if you just take your eyes off of like, I want to conquer the entire world. It's like, maybe, but like, in order to conquer the world, you have to conquer a country first, right? And before you conquer a country, you gotta conquer a city. And right now, you haven't conquered a city. And so what happens is when armies over expand, they collapse. And so you need to fortify your base better. Cause 10, dude, 10, 10 a month is nothing.

• 3:15Speaker 01

  So what do you recommend? Do I try to automate what I have? Or do I just put myself more into it?

• 3:21Alex Hormozi?

  Yeah, I think you should just ignore the national thing.

• 3:24Speaker 01

  Yeah.

• 3:25Alex Hormozi?

  And let me just ask the simple question. Can you, could you sell 20 people a week right now? Not like, let me say it differently. Can you handle 20 people a week?

• 3:36Speaker 01

  We will be soon. That CEO has kind of taken over.

• 3:38Alex Hormozi?

  So you could have an 8x increase in sales within your current infrastructure. So that would take you from four to 32.

• 3:47Speaker 01

  This solves a revenue problem, not the impact problem.

• 3:54Alex Hormozi?

  Do you make content?

• 3:55Speaker 01

  I don't have time. Yeah. If you couldn't tell, yeah. But that's where I'm slacking the most. Yeah. It's the content.

• 4:02Alex Hormozi?

  It would be far easier for you to just make content about the stuff you're doing, impact millions of people that way, than try and get every single person in America to be a home flipper.

• 4:14Speaker 01

  And that's not achievable anyway.

• 4:15Alex Hormozi?

  I agree.

• 4:16Speaker 01

  It's more about the financial education, like selling the, the dream of like, you could be something more than just where you think you are and where you came from.

• 4:23Alex Hormozi?

  And you can make content about that. And you can distribute it for free with leverage. It's a beautiful thing. And so like, you can be legit, because you have a legitimate business, and then you can talk about it and help all these other people. And then you just keep growing this thing.

• 4:37Speaker 01

  Okay, so double down locally.

• 4:39Alex Hormozi?

  Yeah, you already have all the like you went through whatever the hell you did to go through and build all that stuff. It's like you just build it and you're like, you know what? I'm going to leave it now and I'm going to do another thing. So no, like, I'm glad you brought the COO in, but it's probably so that she can do some of the stuff you're doing now. So you can do the stuff you know you should be doing, but you're not. And so if you wanted the impact, you see, you don't have time. You have the COO go make some content. It's not going to take that long anyways. And that way you can scratch your impact itch. And then for everything else, it's like, you need to learn how to run paid ads and sell shit. Cause like you for sure can sell 20, 50, 100 people a week in a local market. No problem for the offer that you have.

• 5:12Speaker 01

  Should I increase pricing to make it better? Or should I keep it where it's that given that it does feed my other channels?

• 5:17Alex Hormozi?

  You probably have a better time, just like charging a hundred grand and saying you'll do that stuff for free or at cost.

• 5:23Speaker 01

  Yeah.

• 5:24Alex Hormozi?

  But yeah, I mean, can you raise prices? It's just like, can you sell and can you like, yes, you could. Typically an offer like this is a hundred grand.

• 5:32Speaker 01

  Yeah.

• 5:32Alex Hormozi?

  So usually they have a done with you style offer. That's between 15 and 25. And then there's a total turnkey offer, which is a hundred thousand dollars.

• 5:40Speaker 01

  No one in my market can afford that. That's the problem.

• 5:42Alex Hormozi?

  That is just not true.

• 5:44Speaker 01

  If.

• 5:45Alex Hormozi?

  Dude, no one in your market that has heard of you through word of mouth of you emanating your presence into the, the, the workshops that you run. One's a quarter or whatever have can afford it. If you run ads, yes, it's just that like, how many people show up to your thing?

• 5:59Speaker 01

  The venue holds 55 is packed out every time.

• 6:03Alex Hormozi?

  Yeah, 50, so you have 55 people a month that come in the doors.

• 6:06Speaker 01

  Every three months, yeah.

• 6:07Alex Hormozi?

  Every three months.

• 6:08Speaker 01

  Right, dude.

• 6:09Alex Hormozi?

  So it's like, the way this looks in reality is you'll bring a hundred people in the room and you'll do three of those in a day. And you'll pitch and you'll close 10, 15, you'll close three or five at the, you know, like the hundred K. And you'll close a handful at the, you know, call it 15 to 25 K. And that's, that's the business. So you'd like, you're, you're, you're like, you see 200 people a year and you're like, my market can't afford it. It's like, well, those 200 can't. It's like, look at 2000, I'm sure there are some. Let me give you a stat. Nine percent of people in America have a million dollars in terms of their net worth. So if you include the like value of their home, like nine percent, it's significantly higher than you think it is. They just look older.

• 6:52Alex Hormozi?

  Real.

• 6:52Speaker 02

  Okay. We sell motocross training.

• 6:55Alex Hormozi?

  Okay.

• 6:56Speaker 02

  So we, we hold five day camps. What we did to be able to get our projection to 26 to the 4 million is we scaled down our single day tour dates. We were, we, we did more in 24.

• 7:08Alex Hormozi?

  Love this for us.

• 7:09Speaker 02

  We went all the way to, we scaled from 70 single day tour dates in 23 to 140 of them in 2024. And it was just a ton of operational drag. I mean, it was like, we were like a rock.

• 7:22Alex Hormozi?

  Twice as much.

• 7:23Speaker 02

  It was nuts. But what we realized in looking back on it is the bottom 20 of those were net negative. The, the next 20 were net less than a thousand dollars. So inconsequential. And then I started looking at in 2024, we did three of the five day camps, kind of as a test run. Each of those net well over a hundred grand each. And I'm like, well, hang on a second. This is the answer. So this year I told the team, at first I called them, I said, hey, I just had an epiphany. Here it is. We're going to do 10 camps. And I said, actually, no, we're actually going to do 25. And they're like, 25? What do you mean 25? My question is, do I continue to my?

• 8:02Alex Hormozi?

  Were you just able to charge more for the three day than the one day? Why did they make some earth? Sorry.

• 8:06Speaker 02

  So the one day is $300, which is probably not enough. The five day is $1,200, which is definitely not enough. So that's what part of the question too.

• 8:16Alex Hormozi?

  Cool.

• 8:17Speaker 02

  I want to continue to scale the five dayers and scale down the single days. But my fear is we basically own the space. Nobody else does what I do. It's a pretty large market. Um, there is one copycat company and he's trying to hit all these single day tour dates in the regions that were doing them. So I'm afraid if I scale them down too much, we won't be able to.

• 8:34Alex Hormozi?

  He's going to copy the model that makes the money.

• 8:36Speaker 02

  That's a great point. Yeah.

• 8:40Alex Hormozi?

  Love this for us, right? I hope he does.

• 8:45Speaker 02

  I could, honestly, I could go home right now and I'd be happy after.

• 8:51Speaker 02

  Yeah, you're right. You're right. And I feel more confident that I don't think he could do what we could do anyways, but he certainly can't do what we can do in a five day event. I mean, we run those five days like nobody else. So.

• 9:00Alex Hormozi?

  Yeah. And I'll land the plane on that for you too, which is that you will never go out of business focusing on the customer. And I'll tell you a quick story. So the biggest business mistake that I've made, the two most costly business mistakes I've made. One of them has nothing to do with this. This is the other one, which has everything to do with this. I had a competitor that ended up taking a bunch of my top testimonials that were that we kind of converted to semi employees because they were big evangelists back in the gym launch days. And as soon as they took them and they were, they were big ads for me, all of a sudden they were running ads for this other guy. So it's kind of like when the Verizon guy went to the AT&T, remember that, that switcher of that actor? It was kind of like that. And this guy was offering one-on-one coaching to help people out. I never did that.

• 9:45Alex Hormozi?

  And so, and they were cheaper. So they were cheaper. They were doing one-on-one and they had some of my top, you know, customers becoming advocates. And they said that the 10 of them had come together, they partnered, he partnered with these 10 people or something like that. And when that happened, I got rough, my feathers got all ruffled and I was like, it's wartime, we gotta, you know, we gotta go to the mattresses. We gotta really, you know, change, change the business up. And so I did this big, kind of like relaunch internally to my existing customer base. And I did this big value stack and I said, you're going to get all this extra stuff, not for the same price you're paying me, but for less. And so I took my existing recurring base and I reduced my revenue by $500,000 top line per month.

• 10:28Alex Hormozi?

  And so that translated because we take it off top line and the costs went up. So I increased my costs and I took my top line down by six million. And I ended up losing in profit somewhere in the neighborhood of $6 to $7 million a year for that business at the time. I then ended up selling that business, obviously, and the business never recovered that profit. It stayed there. And when I did make that move, the first comment in the chat after I dropped that it was less, was a complaint that I had not done it earlier. So it was not, thank you so much for lowering the price and giving us more shit. It was, I can't believe I was paying more. And I was like, I want to fucking kill myself.

• 11:10Alex Hormozi?

  And, and here was the best part of all my churn changed zero. So I just cut my top line by 20% churn remained the same because the willingness to pay changed that I made, I basically reduced it from call it 3,000 a month to $2,500 a month. It actually made no real difference in whether someone would cancel or not. It was past a threshold that this is a lot of money. And so it changed nothing. I just made less money. And then when I sold the company, that six got multiplied by a lot. And so that probably cost me in the neighborhood of probably 50 million, million dollars. And so the big lesson that I learned there was that I shouldn't. And that, that competitor ended up killing that business because it wasn't fucking profitable. And so I, I was the market leader and someone came in to undercut me.

• 11:55Alex Hormozi?

  And then I said, oh, I'll copy the moron. It's easy to let happen. Yes. And so don't lose 50 million dollars. Let him, let him figure that out for himself. You just focus on the customer and you'll win. Good answer. Thank you. Appreciate you. If you're a business owner, I'd like to invite you out to come to our headquarters in Vegas to see how we scale businesses using what we call the value acceleration method, which is a compilation of all the stuff that we've learned, breaking down different businesses across different industries. And if that sounds at all interesting, you can click below and book a call and we'd love to potentially meet you and see you in person.

• 12:28Speaker 03

  I sell coaching to real estate agents. Um, I do two and a half million. I'd like to double it. What's stopping me is a good question. Your boy Ed, he seems to think I could be just super famous. And he's like, you need a brand manager.

• 12:43Alex Hormozi?

  Yeah.

• 12:44Speaker 03

  And so, you know, he's like, you need somebody that has already kind of achieved that with someone else.

• 12:48Alex Hormozi?

  Yeah.

• 12:49Speaker 03

  So I guess my question is, how do I find that person? Cause 99% of the stuff out there is scams.

• 12:55Alex Hormozi?

  Yeah, totally. And I would even define them as scams. I just people that are not that competent.

• 13:00Speaker 03

  Scam.

• 13:02Alex Hormozi?

  I think it comes down to deception, whether they intended to see or just aren't that good. But back to your point, I, yeah, I agree. So fundamentally, if you want to just make more money and you are a brand that promotes itself, then you need to advertise more. Are you constrained on your delivery?

• 13:17Speaker 03

  Delivery as far as the fulfillment?

• 13:19Alex Hormozi?

  Yeah.

• 13:20Speaker 03

  No, it's group coaching. It's easy.

• 13:21Alex Hormozi?

  So you could double the amount of customers you have right now.

• 13:23Speaker 03

  Triple, quadruple, yeah.

• 13:25Alex Hormozi?

  Okay. Well, then, yeah, I mean, this is a pure advertising play.

• 13:28Speaker 03

  Yeah.

• 13:28Alex Hormozi?

  You probably, I mean.

• 13:30Speaker 03

  I'm interviewing sales guys and I'm looking at paid ads, like hiring people for that. So like, I'm getting into that.

• 13:36Alex Hormozi?

  Yeah, the paid side is going to give you, call it like a one time three to five X off of a baseline, not a promise or guarantee, just saying like, that's, that's what I would say is kind of typical. If you've gotten to this point off of just organic, obviously we can help you with that stuff. But like the long-term kind of like well that you need to keep digging is you want to.

• 13:59Alex Hormozi?

  So think about it like this. So you have, just imagine this is your audience. Right now you're monetizing these people, right? The people who are just like super hot, they love you forever and you continue to promote and you know, this gets filled up with new eyeballs and then they come up because they see your stuff and then they give you money. Yay. Right? So when you start doing, if you do more organic and do it across more platforms, do it more consistently, do it with higher volume, do it with higher quality, that we're going to do is you're going to grow this, this base. This percentage will stay about the same, but now it's going to go to here, right? So then that dollar sign goes up. That's a great long-term play and you just want to keep growing the pyramid. What ads will do is that ads will keep this the same and then it'll move this line down. And so you

• 14:42Alex Hormozi?

  want to do both. So like in the short term, if I was like, how do I like double your business? It's like, that wouldn't be that difficult. I would just be like, cool, just pull the ad lever, it's done. But if we're looking at a 10-year horizon, then I would say, well, we need to do both of these in parallel. We need to continue to plant the seeds and then the ads kind of reach off the top and skip. Does that make sense?

• 15:02Speaker 03

  Yeah, for sure. So how do you find a ad manager? I mean, I mean, I mean, I mean, a brand manager?

• 15:06Alex Hormozi?

  So.

• 15:07Speaker 03

  That's good.

• 15:08Alex Hormozi?

  Yeah. The best thing, I mean, I just, we just poach. We just, I mean, just outreach. Hey, you've crushed it with so and so. Can I pay you more to do it here?

• 15:16Speaker 03

  Right. And so I guess, how do you realize who those people are to poach? Like who?

• 15:21Alex Hormozi?

  Look at the brands that you admire. And then reach out to them and offer them more money to do it for you.

• 15:27Speaker 03

  But you see the brand, but you don't really know who's behind the brand.

• 15:31Alex Hormozi?

  LinkedIn, like Frank and like,

• 15:34Speaker 03

  Yeah.

• 15:35Alex Hormozi?

  Solvable.

• 15:36Speaker 03

  Gotcha.

• 15:37Alex Hormozi?

  For sure, solvable. Yeah. I mean, and most of the people who are really good at media stuff do have some presence anyways on their own. So they don't make themselves invisible. Like you could probably chat GPT, search, who are the people who are involved with that?

• 15:48Speaker 03

  Here's my question. Like, like, is that something that could be outsourced?

• 15:53Alex Hormozi?

  You mean recruiting?

• 15:54Speaker 03

  No, no, no, no, not the recruiting part, like, like the brand manager part.

• 15:57Alex Hormozi?

  No, I wouldn't recommend it.

• 15:58Speaker 03

  Yeah.

• 15:59Alex Hormozi?

  Bring somebody in house. Thing is, what are the, so what are the core things for the business? So for every business, you have attraction, you've got conversion, you've got delivery. Right? Those are the things that are core to every business. IT, recruiting, finance, I see all of these functions as ancillary that aren't core to value creation for the customer. There are things that must occur for the business to continue to be a business, but not things that are core for the value to be created. And so for you, your brand is arguably the most important asset that you have, and for sure would not be something that I would outsource.

• 16:29Speaker 03

  So bring somebody in house, working directly for me.

• 16:32Alex Hormozi?

  Yeah, I would poach somebody. Obviously, we've done, we've hired a lot of media people, you know, I'll be with that. But beyond that, I would probably, if I'm doing order of ops, it would probably be, because the thing is, is right now, are you selling, you're selling, who's doing the sales?

• 16:45Speaker 03

  Well, so I do it in a challenge. Okay. That's the only time I offer it, you know.

• 16:50Alex Hormozi?

  You do one to many, five day thing, something like that. Yeah. Okay.

• 16:52Speaker 03

  And so I'm gonna switch to book a call, single sell guy, close.

• 16:55Alex Hormozi?

  And do it on a recurring kind of evergreen basis or still do it in this long?

• 16:58Speaker 03

  I'll do it both. I'll do both.

• 17:01Alex Hormozi?

  Okay, but you're selling straight to checkout. Got it. Yeah, that motion, as soon as you turn on ads, is going to break in all likelihood, because it's totally different selling to cold than it is to warm. And so the motion.

• 17:13Speaker 03

  Break?

• 17:14Alex Hormozi?

  You will not convert the same percentage you currently do.

• 17:17Speaker 03

  Yeah, no doubt. No doubt, no doubt.

• 17:19Alex Hormozi?

  Buy a lot. And so the whole, the whole, the economics of the entire funnel will change. And so that'll take some adjustment in motion. So just more like preparing you for that, because that's what comes next.

• 17:27Speaker 03

  Yeah.

• 17:27Alex Hormozi?

  So high level recruiting for brand manager, that's going to start building the base. And then ads plus sales motion are going to have to come in tandem, because they both have to be good. The ads have to be good and the sales motion has to be good. If the ads are great and the sales motion sucks, it won't work. If the sales motion is great and the ads suck, it won't work.

• 17:44Speaker 03

  Cool.

• 17:44Alex Hormozi?

  That make sense for next steps?

• 17:46Speaker 03

  What's up?

• 17:46Alex Hormozi?

  That make sense for next steps?

• 17:47Speaker 03

  Yeah. Yeah. Go to LinkedIn and poach somebody. Got it.

• 17:51Speaker 04

  We sell sales coaching and lead gen to financial advisors. We're at 6.6 million. We'd like to be at 20 plus.

• 18:01Alex Hormozi?

  Appbound, paid ads, events, how do you sell?

• 18:03Speaker 04

  Paid ads.

• 18:04Alex Hormozi?

  Okay.

• 18:04Speaker 04

  Yeah.

• 18:05Alex Hormozi?

  Straight to VSL to phone team?

• 18:07Speaker 04

  Correct.

• 18:07Alex Hormozi?

  Cool.

• 18:08Speaker 04

  Yep. Yeah. Biggest thing is churn, as with pretty much all agencies. So we've basically transitioned from lead gen company to sales coaching company. Cause we know that advisors can't close. No offense to any advisors in here. Yeah. So we're, we're doing a lot of sales coaching now. So we have like the big head long tail where we can sell the lead gen on the backend.

• 18:29Alex Hormozi?

  Okay.

• 18:30Speaker 04

  So yeah, the main question is, have you seen other agencies successfully pivot from lead gen to sales coaching or, you know, and like very non-sales or industries where founders or business owners are sales deficient? Have you seen companies successfully train their clients on sales?

• 18:48Alex Hormozi?

  Yeah, sure.

• 18:49Speaker 04

  So like a gym launch, how did you guys successfully do that across thousands of gyms?

• 18:54Alex Hormozi?

  We had something called Boiler Room. We trained their trainers and front desk people every morning and drilled them, role-played and separate them in the groups, the same way with our own teams. So we just did it every morning for them and it was just an add-on.

• 19:06Speaker 04

  Just group, group role-play basically?

• 19:08Alex Hormozi?

  Mm-hmm. Just like you'd have a sales manager meeting where you'd role-play whatever particular part of the script they were all struggling with. And so we break, we break sales training from the team side, not on the one-on-one side, into five parts. We've got intro, we've got disco, we've got offer, and then we've got objections and looping. And then fifth day is basically whatever is kind of the hot topic of what's the thing that we think is going to benefit the team the most? And so that's kind of how we rotate through. We have to keep each part of the script crisp, otherwise they'll fuck up something. And so that keeps the short, you know, the sword sharp.

• 19:36Speaker 04

  Yeah.

• 19:37Alex Hormozi?

  And that's what we did, you know, across the team. We still, we do that for our teams too. But I think it's likely that it's under, basically you need to provide more value or you need to lower the price. And so if you want to tackle churn, it has to be like, there are for sure businesses that work in the space that you're at. I think big head long tail is a great model, like charge the upfront and then just make the continuity much, much smaller. So it's a no-brainer, like they'll almost pay that just. To be kind of in the network.

• 20:02Speaker 04

  Sure.

• 20:02Alex Hormozi?

  And so this is, I'll just, I should have said this earlier, but it's like, I try to answer the question so that it affects as many people as possible in this room. But the problem with information and kind of quote, quote, coaching or education type businesses is that people try to make continuity out of the front end. Value that you're providing and then the value drops once you have the skill. And so you have to separate out the consumables from the one time things. The one time things also have significantly more value than the consumables do. Now, sometimes they don't have the money to pay for the one time thing because they don't have the skill, the one time thing would give them.

• 20:35Speaker 04

  Yeah.

• 20:36Alex Hormozi?

  Right. That's kind of the issue. So in order to separate it, it's like, you just have to think, what are the things that they get on an ongoing basis? And if we only sold that, what would the price point be? Likely significantly lower. And if we got them that skill, it would be significantly more. But once they have the skill, assume they have the skill on the ongoing basis.

• 20:53Speaker 04

  Yeah.

• 20:54Alex Hormozi?

  What would they still pay for? Now you have the lead gen thing.

• 20:57Speaker 04

  Really? I mean, the lead gen.

• 20:59Alex Hormozi?

  Oh, everyone wants it.

• 21:01Speaker 04

  No one can deliver it. When they learn how to sell using our process, they stay.

• 21:05Alex Hormozi?

  Okay.

• 21:05Speaker 04

  So the biggest thing is just making sure they actually.

• 21:07Alex Hormozi?

  They just don't know how to close.

• 21:08Speaker 04

  So it's, so it's like, it's activation as well. So like getting them to come in and actually engage.

• 21:13Alex Hormozi?

  Yeah.

• 21:13Speaker 04

  Because most advisors.

• 21:14Alex Hormozi?

  Is it all remote?

• 21:15Speaker 04

  It's all remote and they don't, they also don't like sales, like the word sales, like they like cringe inside when they hear it. So we've literally like banned the word sales, like we, we just say consulting. We don't call them sales calls, we call them consults. So like, you know, like that, but yeah, I'm just curious.

• 21:32Alex Hormozi?

  So it sounds like you just have to get better at training them.

• 21:35Speaker 04

  Yeah.

• 21:36Alex Hormozi?

  So.

• 21:36Speaker 04

  Okay.

• 21:37Alex Hormozi?

  Your issue though, is that if someone gets activated, they stick for sure.

• 21:43Speaker 04

  For sure.

• 21:44Alex Hormozi?

  Well, then all of the, all of the effort we have is how do we get them activated, like better, faster, which is going to be a function of two things. One is going to be, are there some avatars that are better than others? Right. So we only sell those avatars. And we split that into three buckets. You've got demographics, what do they look like, right? You've got the quantifiables, which is like, what are the, uh, what size business do they have, whatever? And then you've got the ethnic, the, um, I said demographics and there's quantifiables. There's a third one, I can't remember, but those two will at least get you on a head start. In terms of segmenting the traffic, so you can be like, this is who the avatar is. These ones have a significantly higher likelihood of converting. And what will happen when you do that is your CAC will go up. But then your stick problem will get fixed.

• 22:24Speaker 04

  Okay.

• 22:25Alex Hormozi?

  So like, for example, if I sold everybody who identified as a fitness person, then GymLaunch would never have been able to exist. Because I would have had too many shitty customers who are personal trainers who've got 10 clients, whatever, and they can never pay and it doesn't matter what I do. And so for me to deploy the resources required to actually get them up to snuff, I have to have somebody who at their onset can pay more. So that I can actually help them.

• 22:49Speaker 04

  Okay.

• 22:49Alex Hormozi?

  Because below a certain extent, it just needs to be DIY, which is a different business, not the business I wanted to be in. So there's probably some advisors that are better, that you need to basically scan out and say, all these people we're not going to service because they have a low likelihood of actually working. And maybe you need to adjust price to only accommodate those people and that newer avatar that's better. So this is predominantly an avatar issue. And then obviously the ops on the backend in terms of activation is what do, oh yeah, that's the third bucket, the behaviors. So what are the people who have the right demographics and the right quantifiables? What behaviors do they do that cause them to activate and stick? And what do the other people who look like them not do? And then that becomes the activation process we reverse engineer.

• 23:27Speaker 04

  Makes sense. Quick last question. How did you, how did you optimize for, for time to value at GymLaunch? And how can we potentially do something similar? Because for us, deal cycles are.

• 23:37Alex Hormozi?

  Yeah, we'd email their list, they'd make a sale in the first seven days.

• 23:39Speaker 04

  Okay, so just reactivation. Okay, sweet. Appreciate you.

• 23:42Alex Hormozi?

  If you're doing a million dollars or more a year, and you'd like to get to 10 million or a hundred million dollars, I can promise you absolutely none of that. But what I can do is create an environment where you can actually talk to other business owners and players within those businesses that are doing those numbers. And for me personally, the big breakthroughs that I had in my business was when I came in with an open mind and was like, I don't know what I don't know. And so you probably have one of those, like, how do I get my content to scale? How do I recruit these first salespeople? Or how do I recruit my 20th or my VP of Sales or Director of Sales? Every single level of this game has more complexity than the last. And so if that sounds at all interesting, I'd love to invite you out to our headquarters for two days to talk to me and the team, Director of Sales, Director of Marketing,

• 24:25Alex Hormozi?

  Director of Strategy, Director of Ops, Director of Investment, all the people that, who actually run our portfolio at acquisition.com. And as a bonus, all the other business owners in the room are doing a million dollars plus. And yeah, so this is your invitation. So if that sounds interesting, click, book, call. If it's a good fit, love to invite you out here and maybe see you in here in Vegas.