Do Epic Stuff & Then Talk About It | Ep 902

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?

  The first step in all this stuff is like do epic stuff and then step two is talk about it. And that is fundamentally how you provide value. And so when you're providing value in any domain, like I want to build my personal brand like. Your personal brand will be built on the amount of value you can provide other people. You can get whatever you want in life as long as you help enough other people get what they want.

• 0:21Alex Hormozi?

  So now we shall begin the hottest of Hermosy Hotlights. All right, rock and roll. Tell me about the business.

• 0:27Speaker 01

  All right, we are a $1.2 million pool service and repair company in Raleigh, North Carolina.

• 0:35Alex Hormozi?

  Rock and roll. What's, what's profit?

• 0:38Speaker 01

  About 50K after 145 in staff owner salaries.

• 0:43Alex Hormozi?

  So 200 all in?

• 0:45Speaker 01

  Yeah, yep, 195, yeah, right around there.

• 0:47Alex Hormozi?

  Cool, that's fine. Okay, 200K, bottom line, all right, uh, what's the, what's the membership price? What's churn?

• 0:54Speaker 01

  Um, we're about, it, it depends, but average is about 4,500 a year um, per client. Um, and we're only recurring.

• 1:04Alex Hormozi?

  What's churn? Yeah.

• 1:05Speaker 01

  Oh, churn, uh, we lost about 12 people this year, so 12 divided by 176, whatever that is, 12.

• 1:12Alex Hormozi?

  Yeah, okay, so you have 93% retention annually. Okay, great. So churn's not an issue. Fantastic. All right. So what do you want to have happen? What's the problem?

• 1:20Speaker 01

  Uh, problem for us is we can't hire and retain and train really talented people. Um, we, we find that we can keep people for about a year and then they either want to go do something else or they want to go into a different trade that they view as like a higher, a higher opportunity, like HVAC plumbing, electrical.

• 1:39Alex Hormozi?

  Sure.

• 1:39Speaker 01

  Um, sure. Stuff like that. So we're trying to figure out a way to make it so that people want to stick around and see this as a career that it can be.

• 1:47Alex Hormozi?

  Yeah, I'm gonna, I'm gonna, we're, I'm gonna guess, what's your close rate right now when you meet with people?

• 1:53Speaker 01

  Our close rate when we meet with clients or with leads?

• 1:57Alex Hormozi?

  Well, leads to, you know, to sell them.

• 2:00Speaker 01

  Yeah, selling, we're about thirty percent.

• 2:03Alex Hormozi?

  Thirty percent, interesting, okay. So, this is me calling the shot, this is my guess here, Phil. Is that, I'm gonna bet we have to fix the sales motion, number one. Once we fix the sales motion, we can increase prices. Step two. Once we can increase the prices, which will dramatically increase profit, we can then pay the guys more, so they stick.

• 2:25Speaker 01

  Yeah, currently they're paid twenty-five percent of labor revenue. And, so yeah, definitely increasing prices definitely is a way to do that. Um, and, that's, that's the thing, we're just, our close ratio, I feel like, isn't high enough to warrant the price increase I know we need, right? It's like, I don't want it to go to five percent close ratio, in order to get that.

• 2:47Alex Hormozi?

  I mean, dude, for you to get to five percent, you would have to like ten x the prices. It would be, it wouldn't be easy. Um, so, we have to fix the sales motion, so that's my, so like, this is why, like, you gotta pull the thread, right? So it's like, it starts with like, my guys aren't staying long enough, but the reality is that like, we're not charging enough, but we can't charge more because our sales process is screwed, so let's fix the sales process. All right, so walk me through the sales process.

• 3:08Speaker 01

  Sales process, we have currently, and they basically call our office, we do a lot of inbound, we don't, we don't do as much advertising as we need to. And, so, we were pretty, pretty well, uh, we show up pretty well on Google, uh, but we're only spending like five, six hundred bucks a month on actual Google outbound, um.

• 3:29Alex Hormozi?

  Well, you do Google Ads, right?

• 3:31Speaker 01

  I mean, Google Ads, like, Google Local Services.

• 3:33Alex Hormozi?

  Got it, and so you're, and five hundred bucks a month is what you're, you're, you're putting into PPC, okay?

• 3:38Speaker 01

  Yep.

• 3:39Alex Hormozi?

  All right, how many leads are coming from that? Any idea?

• 3:43Speaker 01

  Leads a week, leads a week are about two to three.

• 3:47Alex Hormozi?

  Okay, from that, from that five hundred that you spend, right? Okay, so I'm gonna say you're getting 12, 12 a month. Let's just say 10 for simple math. So it costs you 50 bucks a lead right now, right now, roughly. All right. And you convert what percentage of leads?

• 4:07Speaker 01

  Uh, convert about 30%.

• 4:11Alex Hormozi?

  Okay, converting 30% of leads. You can get that to 50 on inbound, just FYI, but you're at 30%, that's fine. For, for the purposes of our conversation. Okay, so it costs you $150, right?

• 4:24Speaker 01

  Yeah.

• 4:25Alex Hormozi?

  To get a customer who's gonna pay you $4,500 a year.

• 4:29Speaker 01

  Yep.

• 4:31Alex Hormozi?

  Not bad.

• 4:32Speaker 01

  Not bad.

• 4:34Alex Hormozi?

  So let me ask you this, what percentage of your costs are variable versus fixed?

• 4:38Speaker 01

  I don't have an exact figure. Um.

• 4:40Alex Hormozi?

  Let me ask you this, what are gross margins?

• 4:42Speaker 01

  Gross margins are about 50%.

• 4:45Alex Hormozi?

  Okay, so that.

• 4:47Speaker 01

  They're about 25, labor's about.

• 4:48Alex Hormozi?

  And that includes labor, that includes labor, right?

• 4:51Speaker 01

  Correct.

• 4:51Alex Hormozi?

  Okay, so you're gonna make, so it costs you $150 one time to make $2,250 per year in gross profit.

• 5:02Speaker 01

  Yep.

• 5:03Alex Hormozi?

  Banger, banger, amazing, okay.

• 5:08Speaker 01

  I need to put more into advertising, yes.

• 5:10Alex Hormozi?

  Hell yeah. Bro, I have got this amazing investment opportunity. If you give me $150, I'll give you $2,250 back. Just at the end of the year. All right, I'll give you, I'll give you $2,250 back. How much money are you giving me?

• 5:25Speaker 01

  Um, as many, as many pennies as I can throw at you, yeah.

• 5:28Alex Hormozi?

  Okay, well, how much cash you have on hand?

• 5:31Speaker 01

  Uh, not a lot, not a lot on hand. Um, we basically are, that's the thing, our, our, we have two owners in the business. So we're taking out a good amount of our.

• 5:41Alex Hormozi?

  Pause, pause, heard, pause, heard. So what you need is a money model. So what, how much money are you making the first 30 days on a $150 customer?

• 5:52Speaker 01

  Uh, generally, so we, we just transitioned to doing a different, different type of initial visit model. Um, that currently we're getting about 1,500 per client in the first 30 days. Uh, but it really depends, that's, that's our average.

• 6:07Alex Hormozi?

  Bruh, so you don't even need the money because you're getting 10 to one upfront.

• 6:11Speaker 01

  I know, but then so our on that 1500, there's a good amount of that, which is cost of goods sold. Because we're really finding issues for repairing things.

• 6:21Alex Hormozi?

  Let's say you make 500 on, on, on 1500. Let's say you run 30% on the first one, right? Does that sound, does that sound reasonable? Dude, you're still making 500.

• 6:30Speaker 01

  Mm hmm.

• 6:31Alex Hormozi?

  On your 150.

• 6:33Speaker 01

  Yep.

• 6:33Alex Hormozi?

  So why not spend more?

• 6:35Speaker 01

  The, I don't know, I'm just scared, I guess. Scared to put my money where my mouth is, that's it.

• 6:43Alex Hormozi?

  Yeah. I mean, I'll say this, I don't know if you were on for the beginning of this, but like this is a super classic issue. This actually happened a ton in gyms. So gyms have fixed costs like rent and equipment leases and things like that, right? And so the guys would have a vehicle like this that they're getting 10 to one on, something really strong. But what they would do is they would only spend enough money to cover all their fixed costs, but never get into the black. They literally would just like spend enough to like, they, they play business on defense rather than offense.

• 7:14Speaker 01

  Yes. Yep.

• 7:16Alex Hormozi?

  Right? Like you're, you're playing right now to not be poor rather than to be rich.

• 7:20Speaker 01

  Yep. That sounds familiar. Yeah.

• 7:22Alex Hormozi?

  Yeah. And you're, and you're willing to make the money for your team. You're willing to make the money for the landlord. You're willing to make the money for the bank, but you're not willing to make the money for you.

• 7:29Speaker 01

  Yeah.

• 7:30Alex Hormozi?

  Real, right?

• 7:31Speaker 01

  Yep.

• 7:32Alex Hormozi?

  Okay. So as much as I would like, I'd love to like, you know, dive into a hundred other things like this is, I'll bet you right now. This is the core issue is like, I want you to go from $500 a month to $5,000 a month to spend. Because if you went from two to three leads a week to two, three leads a day. Would that materially change the business from a casual perspective?

• 7:52Speaker 01

  Yeah, definitely. But that's the thing. It's our, we could, we could do that, but then we run into fulfillment issues. If we, it takes us six weeks to train a guy. So it's like chicken or the egg. Do we?

• 8:01Alex Hormozi?

  Six weeks is not that long. Big picture FYI, right? And I'll bet you could do it in three if you really had to, right? Okay. So.

• 8:10Speaker 01

  Yeah, that's, that's the thing.

• 8:12Alex Hormozi?

  When you're in equilibrium, this is a rule of thumb for me and for everybody who's listening. If you're in equilibrium where you're like, I can maybe take a little bit more demand, but then I'm going to be supply constrained. Get the demand, get the cash, then you'll get the resources to take the next move. And if you have to pay some guys one and a half or one and a quarter, you know, overtime to, to, to fill the slot. One, you're going to pay them more anyways, and that's good. Fine. And I'll bet you those guys would work more for more money.

• 8:38Speaker 01

  Yeah.

• 8:39Alex Hormozi?

  So you have flex, you have, you have more capacity, you have capacity that's not stretched. So if you could stretch it, most people like you'd be amazed at what people can do if you're like incentivized.

• 8:50Speaker 01

  Yeah. Yes, it's, yeah, definitely, we could, I mean, our team, our team's pretty, pretty strapped right now.

• 8:56Alex Hormozi?

  Yeah. And are you, are you closing? So walk me through the sales process real quick. Lead comes in, you immediately call them within 60 seconds or what?

• 9:03Speaker 01

  No, um, it's basically, we have, um, online pricing, all of our prices are online. So they hit our website, they basically sign up and then once they sign up on the website, we're contacting them automatically within five minutes. Um, and they're basically.

• 9:19Alex Hormozi?

  Be a text or call.

• 9:21Speaker 01

  Uh, we basically email, um, from the signup. Um, we don't do any, any calls right now, not, not nothing, nothing automated, nothing.

• 9:32Alex Hormozi?

  Dude, you could probably double, you could double your conversion if you just called the leads immediately.

• 9:37Speaker 01

  Yeah. Yeah.

• 9:40Alex Hormozi?

  So let's say, let's say, let me, let me ask you a question. If I paid you another 1.2 million dollars to do one thing, which is to just call your leads in 60 seconds, I give you one, a hundred thousand dollars a month, would you do it?

• 9:55Speaker 01

  I, I suppose I would, yeah.

• 9:59Alex Hormozi?

  Well, that's what's sitting on the table right now because you're not contacting your leads fast enough.

• 10:02Speaker 01

  Yes.

• 10:03Alex Hormozi?

  You have a double, you can get to 60%, when it's PPC inbound, they already know the price, you could, you could close 60%. And that's without changing anything about the pricing, the offer, anything, just from contacting them fast.

• 10:13Speaker 01

  Then for, I, yep.

• 10:15Alex Hormozi?

  Okay. So we have two changes that are going to be the biggest material changes. Number one is you're going to spend way more on ads. Number two is you're actually going to call your leads really fast. When you do those two things, you have enough gross profit in the first 30 days of cash flow this acquisition anyways. You're then going to be willing to pay some of the guys you have time and change to do more jobs. Some of those guys are hungry, want to make more money, that's why they're leaving, right? Give them the opportunity to make more money.

• 10:37Alex Hormozi?

  And then part of that is you can also pay them a little bit more money to, to train the guys faster because they're working longer hours, they'll train them faster.

• 10:43Speaker 01

  Yeah. So incentivize, incentivize the trainer to, to get them, get them on the road faster.

• 10:48Alex Hormozi?

  Yeah.

• 10:48Speaker 01

  So we can open up capacity.

• 10:50Alex Hormozi?

  I mean, I would say, hey, if you, you can do it in six weeks, if you can do it in two, I'll give you a $500 bonus.

• 10:55Speaker 01

  Yeah. I think, yeah, it's a good idea. Yep.

• 10:58Alex Hormozi?

  There we go. Rock and roll?

• 11:02Speaker 01

  Great. Yeah, thank you so much.

• 11:03Alex Hormozi?

  And I put the incentive is that if you have to go back and fix one of the spots that the new trainee went to, that that guy's got to do it for free if he takes the commission.

• 11:11Speaker 01

  Yeah, yep. Yeah, we do. We do callbacks on, then they're on.

• 11:15Alex Hormozi?

  But I would do it on the trainee. If I'm gonna, if you were to take it from six to two and you're gonna sign off that this guy's good enough, I'll give you the bonus, but you gotta basically certify that guy's work for the next month.

• 11:24Speaker 01

  Right. Okay. So the trainee makes a mistake if they're rushing through it. The trainer goes and fixes.

• 11:30Alex Hormozi?

  Yeah, Big Papa's gotta come in. Mm-hmm.

• 11:32Speaker 01

  I see what you're saying. Yeah, yeah. Yeah, great idea.

• 11:34Alex Hormozi?

  Rock and roll?

• 11:35Speaker 01

  Rock and roll, man. Thank you so much. I really appreciate it.

• 11:37Alex Hormozi?

  Appreciate you, dude. Yeah, you bet.

• 11:39Speaker 01

  Yeah.

• 11:40Alex Hormozi?

  What is your advice on dental clinic marketing since you had an agency? We are working for abroad patients using prices lower than their country. Okay. What's your advice for dental clinic marketing since I had an agency and we're working abroad for patients using lower prices in their country? Okay. So, uh, I'll say right now, I mean, I've seen this all over the place, but you can advertise in any way, right? You could do outbound, you could do content, you could do ads. My bet, given what you're, what you're talking about, is I would probably do this as a content strategy. Like, I don't know if you guys have seen this, like the, the Turkish hair, like they've got like, there's like a whole industry in Turkey around like guys who are bald getting like their hair back. And the doctors who are over there just post before and afters left and right all day long on Instagram, on TikTok,

• 12:25Alex Hormozi?

  and that's how they're generating inbound demand. Uh, so I would say that's like number one, but the way to operationalize that is you have to build it into the, the, the customer journey. So like when they come in, immediate picture, uh, you know, day thirty, day sixty, it's like, we have to go collect these pictures. And if you want, you can give rebates for it. Most time you don't have to. And then by doing that, it's like every single person who comes in the door is a potential before and after. So it's like you can get twenty, figuratively twenty posts a day. Uh, or I don't know how many, how many teeth you're doing, right? But maybe it's two posts a day, right? That you can source directly from your existing customers and you don't have to do anything else. And then you can explain just like, do the before and after, and then do like a quick thirty second like, hey, this is, you don't have to say their name. You could put, cover the eyes if you have to, like, this is a unique case. If you're struggling with X, Y, Z, pain-based hook, you know,

• 13:08Alex Hormozi?

  this is something we do all the time at our, you know, at our clinic, right? That's thing one. Um, thing two is I don't love winning on price, but it is sometimes just like some of the strategy and that's okay. You could just experiment with running ads. My bet, though, I'm just saying because. Anything that's like, I mean, they are, I guess they are bargain hunting, but people kind of want the best of both. It's like, they want it to be good and they want it to be cheap. And so like, I would lead with content first. I would take the best performing content and then I would run that as ads with the offer. So, content first, find winner, put a CTA on the end of the winner and then drive paid to that. That's what I would do. Hey Alex, a lot of your videos have helped me understand a lot of business points that I didn't understand before. Okay. I have a full-service LinkedIn agency doing content and DMs. I think that founders, after a certain AR, don't want DMs sent from their

• 13:53Alex Hormozi?

  account. Brand risk? Yeah, that's possible. So you've got two options. Option one is you just only pick the founders that are below a certain size. That is an option. The alternative is that you make it work from their brand. Just figure like, what stops me from doing more? I have to figure out how to get this to be openable from a brand. Okay, that's another, another way. Maybe it just takes twice the volume and then they're willing to do it. The next kind of thinking process there is you can frame it out to like, you can either sell them heavy on why it doesn't matter. Option one. Option two is you can figure it out from the, the, the brand perspective. Option three is that you only take on smaller guys. But I think these are features, not bugs, unless you just figure out another way to get customers. Cause I understand why somebody would not want that. But I, I

• 14:36Alex Hormozi?

  would say like, what is your objective as a CEO? Is it to grow the business? Okay. Do you think that your, your brand as CEO would be better if your business were bigger? Right. I think you should just sell them on it. And not everyone's going to say yes, but if half of people say yes, because you sell them on it, then you can keep growing the business, then that sounds good enough for me. All right. Google ranks. And then I'm going, and then I'm going to Mr. Drew next. All right. Uh, I'm a 17-year-old kid looking to start my own pool construct. Dude, I just did one. Pool company, did digital marketing for a year. My dad has a little construction license in Florida and vice. Yeah, dude. Uh, I would run $5,000 a month of PPC and I would call the leads within 60 seconds. I would sell a $1,500 package upfront. Um, and I would roll them straight in continuity right after that. That's what I would do. Signor Drew, or I think the Germans say, "Er

• 15:21Alex Hormozi?

  Drew." Like E R R or I don't know if that's how they say air. All right, Drew, what's up? We're cooking.

• 15:27Speaker 02

  Alex, nice to meet you, man.

• 15:30Alex Hormozi?

  Nice to meet you too. Talk to me.

• 15:32Speaker 02

  We made this app for fence contractors.

• 15:35Alex Hormozi?

  You made an app for defense contractors?

• 15:37Speaker 02

  That's right. So it allows them to show their client a fence right in their yard.

• 15:43Alex Hormozi?

  Oh, fence contractors, not defense contractors. I was like, those are wildly different things. One people are blowing up fences, the other person are building them. Good to know.

• 15:52Speaker 02

  That's right. That's right.

• 15:55Alex Hormozi?

  Yeah, we're trying to cross country lines. All right. So we got fence contractors. All right, you built an app for them. All right, there's an app for that. What's revenue?

• 16:04Speaker 02

  About half a million a year.

• 16:07Alex Hormozi?

  All right, 500 K per year. What's revenue retention?

• 16:11Speaker 02

  Our churn's about like 8% monthly.

• 16:14Alex Hormozi?

  Oh, that's, that's high. That's high. Okay. 8% a month. All right, that's pretty high. All right, what's price?

• 16:23Speaker 02

  It's $1.99 a month, cancel anytime. And we also, that's for two users, like five users is $2.99 a month.

• 16:31Alex Hormozi?

  Okay, got it. And so what does this app do?

• 16:34Speaker 02

  So it actually allows them to show their client a fence like right in their yard. It's like the dream outcome on the value equation. It lets them like put it right into their yard.

• 16:43Alex Hormozi?

  Yeah, it's a sales tool.

• 16:45Speaker 02

  Yeah, yeah, exactly.

• 16:46Alex Hormozi?

  Okay, so why are they churning?

• 16:50Speaker 02

  So really like our biggest thing is if they don't use it and like sell a fence within the first 10 days, they churn. If they actually go out and we hear them sell a fence, they literally love the product and it's very rare that they cancel.

• 17:05Alex Hormozi?

  Okay, how do you get leads right now? We'll cover that in a second. How do you get leads?

• 17:08Speaker 02

  So we run Facebook ads, just for instant form. We have a couple of questions upfront. And then our automation puts them right into our CRM and we reach out right away.

• 17:20Alex Hormozi?

  Yeah, what's CAC?

• 17:21Speaker 02

  About $130.

• 17:25Alex Hormozi?

  CAC, not lead, not CPL, a CAC, cost per customer is 130 bucks?

• 17:30Speaker 02

  When we hit like a really good ad, our cost per lead is like a dollar fifty. Like this past week, we really hit one that was crazy and um.

• 17:39Alex Hormozi?

  That's insane. I would not get used to that because it will not stay there. That is insane.

• 17:43Speaker 02

  Also, I personally, like, I do a lot of the sales personally, so like right now, I'm not paying like a commission, which really helps.

• 17:49Alex Hormozi?

  Yeah, well, yeah, that's nice, right? When you do, when you do things yourself. Okay. So, uh, I mean, LTV to CAC is still fine, but you like, I, this is what I would encourage you to do. Do not scale your ads at all until you fix this churn issue. There's no point. You're just gonna pour it out the back. There's no point, zero point whatsoever. Like, you want to be able to figure out what activation is. Now, if you know that if they sell a fence, right, with the thing, they stick, right? We know this.

• 18:14Speaker 02

  Yeah.

• 18:15Alex Hormozi?

  Okay. So then the question is, how can we incentivize them? Or how can we make it easier for them to have that happen faster? So what do you, do you charge 199 upfront for this?

• 18:25Speaker 02

  So we do like a 10-day trial with like the credit card attached, like, we say like, you know, this is how we've always done it. Uh, if you don't like it in the first 10 days, you can cancel. So.

• 18:34Alex Hormozi?

  Yeah. Dude, I think it's a trial issue, dude.

• 18:37Speaker 02

  Yeah. That also includes like during the trial, the 8%, so it might be like lower once someone actually converts to a co- a client. Um, yeah, I see what you're saying, like the pie equation, like we're not gonna, our hypothetical max might be too low.

• 18:51Alex Hormozi?

  Yeah, well, you do need to figure out what the post-conversion churn is. Not total churn, because especially if you're smaller, like you factoring in your trials and churn is gonna mess all your numbers up.

• 19:03Speaker 02

  A hundred percent, yeah.

• 19:04Alex Hormozi?

  Okay. So I'll say this. So you, you, you go through the Money Models book already?

• 19:09Speaker 02

  Yep.

• 19:10Alex Hormozi?

  So the free trial with penalty would be the first improvement that you could make, uh, to this? That's like the, the smallest operational change that you could do? The second level of it, yeah, that's free trial with penalty, you could use that as a front-end offer instead of a down-sell offer. Um, and just say like, we will give it to you for free as long as you XYZ, right? So you have to use it.

• 19:31Speaker 02

  Right, like if you go out and sell someone a fence right in their yard, it's free for the first 10 days.

• 19:37Alex Hormozi?

  Well, you're already doing that, so there's no reason for them to do it. You know what I'm saying here?

• 19:40Speaker 02

  Okay, yeah, I see what you're saying.

• 19:42Alex Hormozi?

  You have, you have to have a penalty associated with it. That's option one. Option two is that you charge them upfront.

• 19:50Alex Hormozi?

  And then say, I will rebate you the 199 if you use the app to put it in at least two people's yards or three people's yards. What's whatever the average they let's say they close 30% say like you do three yards in the first 10 days where you put the fence in, I'll rebate you back the 199. And I'll tell you why I'm doing it because I know that if you do it, you'll stick. Let me just show you my cards because as soon as you use the tool, you'll make more and you'll never leave. So I'm going to incentivize you to use it.

• 20:18Speaker 02

  I do what you're saying. Totally. Okay.

• 20:20Alex Hormozi?

  Cool. So just make the second month free.

• 20:22Speaker 02

  Okay, so we literally charge 199 upfront. If they use it two or three times, we can give them their money back right there.

• 20:31Alex Hormozi?

  Right. Well, you don't need to give them their money back. Just don't build the second month, build the third.

• 20:35Speaker 02

  Okay. Yeah, that makes sense. Okay.

• 20:37Alex Hormozi?

  Yeah, that would be it. Like, we just have to incentivize activation because if you can get your churn down to like, because you need to be at 80 plus percent per year or higher for this to be something cool.

• 20:50Speaker 02

  A hundred percent. Yeah, a hundred percent.

• 20:51Alex Hormozi?

  That's all you have to do. Just get it to 80% a year. So you want to be at like, less than 2% a month. I know it's gotta be, yeah, it's gotta be like closer to 1%.

• 21:00Speaker 02

  All right. I'm a man on a mission. I'll make it happen.

• 21:02Alex Hormozi?

  Okay. And I want you to do this, though. Measure the churn from basically, don't even look at churn on the front end, look at conversion rate, and then post conversion rate, measure churn. That's what you should be looking at.

• 21:13Speaker 02

  Okay, so like only measure the churn once they've actually converted into a subscriber.

• 21:16Alex Hormozi?

  Right. Yeah. And your true CAC, I'm guessing now because you're it's costing you 130 bucks to sign up a trial, right?

• 21:22Speaker 02

  I gotta look at it closely, but I'm pretty sure it's something like that. Yeah.

• 21:25Alex Hormozi?

  Yeah. So and then let's say it's one out of three trials convert. I don't know.

• 21:29Speaker 02

  It's something like that. Yeah.

• 21:30Alex Hormozi?

  Yeah. So your actual CAC is closer to 500, not 130.

• 21:33Speaker 02

  Okay.

• 21:34Alex Hormozi?

  Cost to acquire a customer, not a trial.

• 21:36Speaker 02

  I think it actually is 130. It is around 130. Okay. Because like, right now, say we get 100 leads, I'll sign up about, you know, eight of them on a trial and we'll get like three or four or something like that.

• 21:48Alex Hormozi?

  Okay. Okay. But yeah, I would go rebate, second month free. They bill, you know, you bill them upfront. It'll also get them way more likely to commit to it. Also, with $200, you can like be on call if they have any issues tech wise.

• 22:01Speaker 02

  A hundred percent. Yeah, as soon as we sign someone up, we like bam fam, like right to an onboarding, like as soon as we can, like ASAP. So, um, we do that. We go right into an onboarding, teach them how to use it. And then honestly, once we get them, like, and they place the fence, like, right in front of them, they get carried.

• 22:18Alex Hormozi?

  So all your effort is activation, dude. That's it. All the, all the effort, all the incentive goes there. Once you have that, the rest of the machine works.

• 22:25Speaker 02

  A hundred percent. Absolutely.

• 22:28Alex Hormozi?

  All right. That's it. That's what we do.

• 22:29Speaker 02

  It was great to meet you, man. Thank you so much.

• 22:32Alex Hormozi?

  Pleasure, Drew. Appreciate you.

• 22:34Speaker 02

  Bye bye.

• 22:35Alex Hormozi?

  Toodles. All right. Admin-deshmain. Hi, Alex. I'm 27-year-old physics coach for high school students based in India for Olympiads. Okay. Medical and engineering entrance sense. Interesting. How do I enter and serve customers in the United States and EU? I don't know how you're gonna enter the US and EU. Cause that, we got the fence guy who was just on here. He's big on that stuff, like, you know, border. I'm kidding. So, how do you enter? Well, I mean fundamentally, I'm gonna, I'm gonna give you the obvious thing. I don't know how good you are, uh, if you're out of India. I don't know how good your English is. So, I'll be real, like, this is me, I'm just trying to help, all right? So, if you want to enter those markets, there's no way anyone actually knows where you live online unless you say so.

• 23:19Alex Hormozi?

  And so, you would just make content in English and you would attract those customers. That's it. The reason many of the people may not be doing that with you is that they think that you're in India. And so, they would think that because of other posts that you have, maybe languages that you're currently speaking in, or accents you have in English. And so, I would strongly encourage you to do whatever it takes to remove your accent so that you can have better access to those markets. This is non-politically correct advice. This is me trying to actually help you make money. All right? That's what I would do. There's a whole series of YouTube videos actually about how to, like, remove an Indian accent when speaking English. I know this because Sharan talked about this to me.

• 24:04Alex Hormozi?

  So when Sharan came here to the US, he had a really thick Indian accent, and he actually got the same feedback, which is why I feel fine sharing it. Uh, which is that you, like, you will be limited by that accent, especially if you're trying to enter these markets. In terms of EU, I would say, like, honestly, like, why bother? Like, just start with the US. It's the biggest, richest market, and you probably already speak English decently. So I would just focus on that rather than try to, like, You know, piecemeal, you know, the European markets, unless you're just saying UK rather than Europe, in which case you just speaking clearer, better English and making content in those, well, not in those markets, but online to those avatars will attract those customers. All right, Caleb Stewart, started my roofing company in January, been doing law of 100. Great, love that. And went full time. Congratulations.

• 24:46Alex Hormozi?

  How do I bring someone else on and get them to do this versus just doing it for themselves? You mean like go recruit a sales guy? I'm guessing you're not saying like, why don't people go do roofing? I mean, because it's work, but the way to like, so the progression is you need to sell people. Stage one, stage two is you need to recruit somebody else that sells. Stage three is that you recruit a team of people that can sell. Those are the three levels of salesmanship, which by the way, for all the entrepreneurs here who love to say that they're really good at selling, you are level one salesman. You need to transition your identity from sales god to sales training god and sales leader. And so it's no longer about how well you can close.

• 25:31Alex Hormozi?

  It's about how well you can get people to learn how to close on your behalf. So how do I get people to not do this on their own? Well, they can do it for you and get paid for it. So I'm not really, I'm not actually really sure. I feel like it's like a mental thing because you're like new to this, but I'd like this is, to me, this is not a thing, like just go recruit other salespeople. Say, hey, this is what I'm willing to pay you as a commission. Let me show you how to door knock. Okay, demands, all right? Is there a way to become like you or what you suggest for providing value in any business field? So number one, definitely don't want to become like me. You want to become more like you, the ultimate unlocked version of yourself, not me. This thing one, because I will not beat you at being you and you will not beat me at being me.

• 26:15Alex Hormozi?

  Right? So there's no point in trying to copy or clone me. Just be the most of you. Now, within that context, if you're being the most of you, the question is then who? And who do you provide the most value to? And around what context or topic do you have unique insights that you've gained either? That you've gained, right? And so when you're starting out, you have to do it in one of two ways. You either have to have achieved something already. Which is notable, that gives you proof. Or you have to let your effort be the proof. And so if you say, hey, I made, you know, 2,000 videos on TikTok and here's what I learned, then you will, you will have something valuable that you have learned. The first step in all this stuff is like, do epic stuff. And then step two is talk about it. And that is fundamentally how you provide value.

• 27:00Alex Hormozi?

  And so when you're providing value in any domain, like I want to build my personal brand, like your personal brand will be built on the amount of value you can provide other people. Like just help other people, like Zig Ziglar said, this old school personal development guy. He said, you can, you can get whatever you want in life as long as you help enough other people get what they want. And I think it's so true. So I would just think, how can I help other people get what they want? And if you're like, if you don't have enough proof and like everyone misses this, start for free. Work for free. Get experience. Go get 10 free clients. Go do the work for them. Make it a free trial plus penalty. Right? It's a great way to get started. I talked about this in the first chapter or one of the first chapters in the leads book, your first five clients. It literally outlines the entire offer structure, when to start charging.

• 27:45Alex Hormozi?

  All of this is inside of the leads book. I think I have it. It's page 51. So I explained my first business and how I did it, how the outreach worked, how I started for free. And then when, how to do the out, like literally like what messages to send, how to send them. And then the actual process of doing this. And I give you 11 ways of showing proof. Uh, it's on page 61. Uh, it's 11 ways to show proof so that you don't look like a newbie. Okay? Rock and roll.