How to Turn Cold Traffic Into Buyers | 1 Hour of Alex Hormozi on Ads & Marketing

0:00I would probably first focus on I mean this is going to sound boring but conversion rate optimization and training the team. If I were to like buy the business tomorrow, I would do fundamentals baseball ground zero. I would literally look we look at every single conversion point cuz there's a lot. It's not just like did they pick up? Did they do a deal? You know, there's like 20 between there. Exactly. And so it's like all we do is we literally just look at every single one of them and just try and tweak six or seven things and we get it from you know 28% to you know 38% from like three or four things and it's like okay our next one we're at you know whatever it is 50% we think we can get it to 65 what's a 30% jump and so we literally just add up every one of these percentage points now all the funnel stuff for sure I think you can optimize all that stuff but like honestly this for everybody like the thing that advanced businesses do that beginner businesses, I'm not calling you a beginner, but I'm saying in general, miss out on is that like the advanced businesses just literally don't [ __ ] up the basics and they just do it at scale.

0:59Like that's really it. Like if you had a single solarreneur business, they're always super profitable for the most part unless you're an idiot. But like most solarpreneur business, one guy with two helpers, it's hard not to make money because you do everything right cuz you're the guy. And then you hire some people and you don't teach them well and they don't do everything right and they're not incentivized to and then you're like I need to do all this fancy [ __ ] It's like if you literally just did what you were doing at scale, you would be super advanced. So realistically, cuz I don't know the space as well as you do obviously is I would just ask for like what are all the things that suck about this process for you and then look at all the ones that I could control for and put hard cost for solving them and wrap it in cuz that's the thing is like so I'll give you a simple example like um so like healthcare as a like great arbitrage for a business owner like some people are like I want to keep my job because this place pays for my healthcare but that place might pay $400 a month for that person's healthare and another company's offering $15,000 more per year but doesn't have healthare and the person's like I got to keep my healthare great retention tool they pay five grand a year and they save 10 because the person's like I can't lose that because they haven't priced it out and so there's probably things that that that and this is what no other wholesale is doing cuz they're all lazy right is you think what are all the other costs that you're going to incur well did they and this is where you sound like the more educated person on the phone you're like well did they talk to you about this cost and this cost and this cost and this cost and they're like those bastards. You're like, "Right, we'll cover all that or whatever." You know what I mean? And it's like the cleaning and the blah blah blah all this other [ __ ] And you're like, and if you know, if you can hard cost that and look what it is, then you can wrap that into your offer and you can make it irresistible by covering the next problems they're going to have.

2:40>> That's if I wanted to come in and win there, I would try and win something like that. you interview. >> I do power washing, solar panel cleaning, window cleaning. Um, we >> power washing. >> Solar panel cleaning. >> Solo panel cleaning. >> Solar panel. >> Solar panel clean. Okay. Got it. I was like, "Wait, are you selling solar and you're doing?" I was like, "Hold on." >> Yeah. [laughter] Window cleaning. [snorts] >> And, uh, we do like $500,000 in revenue. Um, I want to be at a million. >> Supreme, right?

3:05>> Yeah. Supreme power wash. And uh what I think is stopping me is uh strategies to attract or reach out to businessto business uh reoccurring clients and if I should just focus on doing that primarily. >> Okay. So right now you're residential. >> Yeah. Do a lot of door knocking. Yeah. >> So what are margins now? >> Um >> profit. >> Oh. Uh yeah. We're making $500,000 a year. >> Profit.

3:30>> Yeah. >> So what's revenue? Uh >> top line sales, the dollars you collect? Uh >> 500,000. >> What do you take home? >> Oh, uh 250. >> Okay. So half. >> Yeah. >> Okay. So, and that's all residential right now. >> Yeah. There's a little bit of like some like apartment complexes or >> Okay. So, what stops you from doing more of that?

3:54Uh there just people just call us on the phone by my by luck and we get you know >> so it's referrals is the primary way of growing the business right now. >> Okay. So you don't have an acquisition channel and so the thought process that you have is I'm going to start an acquisition channel and go after commercial cleaning rather than residential. >> What what's an acquisition channel? Yeah. >> So how the way you get customers?

4:17>> Okay. So the thought process that you had was how do I I don't right now my phone rings and I'm getting referrals from existing customers who are calling me up and saying hey can you clean my stuff you say yes but it's very much dependent on that phone ringing right >> okay so then you're thinking or you're telling me that what you want to do next is build out a way of getting customers in the door and you want to target commercial

4:43>> Yeah because we have like this one uh client that just came upon us and I noticed like it's it's a lot more money and it's a lot more stable >> because it's reoccurring on a monthly basis. >> So, basically, you hopefully have seen this before, right? Organic, you've got OB, and then I'll just put affiliates from over here.

5:11So, you've got four ways that you can get you can get clients right now besides referrals, which is what you're currently doing. So, do you have experience with any of these things? Running ads, posting organic content, cold outreach, or do you have like people who already have a lot of these types of customers already? >> I have like a third party help with the ads. >> Okay. >> Um, >> well, how many Well, okay, hold on. >> So, how many customers coming from ads?

5:36Um I'm not I'm not >> So this would be >> like it'd be like >> just for everyone. You've got a one of these. >> Yeah. >> Right. So how much do you spend a month on on the ads? >> 2,000. >> Okay. Do you know if you get anything from it? >> Yeah. Um I would say like we get more like off like door knockocking and referrals.

6:02>> Okay. So you door knock >> a lot. [laughter] >> Yeah. >> Okay. So you so you're spending 2,000 a month here. You're doing door doornocking. So how many how many deals a month are you doing off door doornocking? >> Um like 20. >> Okay. 20. >> What's the average deal size? >> Like uh 350 to 1,800. >> Okay. So I'll just call 500.

6:26>> Okay. So you got 10,000 a month there. That sound right? Okay. The rest is the phone rings or what other percentage is this? Uh, like the >> Does more come from the door knockocking or this? >> Uh, probably doornocking. >> Probably. >> Yes, door knockocking. >> Okay. So, you say like half comes from this compared to doornocking. >> Okay. What stops you from spending like five times more money here? >> Um, the fear of not getting my money's back on the third party doing its job, right?

6:53>> Yeah. So, I think I think the first like you need to get this in place. You need data, meaning you need attribution tracking, which if somebody else is helping you run this, they should do it. Um, and if they don't, then you should probably find someone who does know how to give attribution for for the ads that you're doing. I wouldn't say, "Hey, let's go after a new avatar and build a whole new way of getting customers when you currently have two that are working." Or one that's working, one that we're not sure it's working. But if you're spending $2,000, you're getting more than one deal a week from ads.

7:22Well, then it's probably working. uh because you're spending 500 bucks a week if the average deal is 500 and you're getting more than that, then you're probably doing okay. Yeah. >> And so you might actually be sitting right now on something that's getting five to one or 10 to one, but you're only spending $2,000 a month. And so it's like if we can just bump that to 10, then that would be big. Now, you don't have to jump there immediately, like go from two to four, two to six, whatever you feel comfortable with, but step one is get the attribution in place. Step two, then increase it.

7:48Provide the attribution, meaning that we can track what we spend versus what we make is good. then spend as much as you can there. Once you've tapped that, you'll have a little bit more cash flow. And at that point, we can make the decision of, okay, do we want to open up another paid ads channel? Do we want to spin up more doortodoor guys? Um, local is the only exception I have for being willing to have more than one acquisition channel. I'm not against it as as hardcore as I am for other businesses. Uh, because if you're in, you know, bum [ __ ] Kentucky, like there's only 50,000 people. Like, you got to reach them as many ways as you can. Um, but right now, uh, attribution, spend more if you can, as long as the attribution's good. I don't think you should change the business model. I think you should just do more of what's already working. And you just don't know if what you're doing is working. But I can tell you got 50% margins. It's not bad.

8:35>> Yeah. >> Yeah. Yes, sir. >> Cool. >> Thank you, Alex. >> Hey, my name's Alex. I sell luxury homes in Texas. >> I do. >> No, not the luxury homes. Thank you. >> I do 10 million in revenue. I'd like to get to 30 million. >> Okay. Uh 10 million in revenue. So that's that's not home that's not home volume. That's your commission percentage. >> No, it's like six homes at 1.5 million each.

9:00>> Oh, you're doing 10 million. Like you've sold $10 million of homes. >> Correct. >> So $600,000 whatever or less than that, you know, four 400,000ish in commissions. >> Uh net takehome is 2 million from the >> build. >> You build Thank you. building luxury homes. >> My bad. I heard sold luxury homes and I was like, "Okay, understood. Got it." So, 10 topline, two bottom line. Um, and now, sorry, now back to reality. What was uh what was the goal?

9:29>> The goal I'm trying to get to 30 million. Okay. >> Uh my question is, >> how do you attract the top A players and bring them on? >> It's going to still be the It's interesting. We got a lot of a lot of people questions today. um it's going to like every business is demand constrained. You're either demand constrained for customers, you're demand constrained for talent. And so most problems can be solved with advertising.

9:56It's just who are you advertising to? And so once you realize that like all businesses have advertising constraints. Is it am I doing outreach for customers or am I doing outreach for talent? Am I doing running ads for customers? Am I doing ads for uh people? Right? And so how do you find them? You find them the exact same way you find customers. the top players >> it'll be outreach primarily but you can still find a level talent but if you're looking for like leader leaders then it's outreach mostly

10:23>> just looking for a top a player in terms of sales >> okay well yeah I mean sales what I was mentioning earlier is super applies but are you looking for sales to sell people on the jobs >> yes the customer correct >> so you did six last year >> did you do the sales >> yesum It's It's just me in the

10:46>> Got it. Um, could you do 18 sales in a year? >> Yes. >> Okay. >> The operational side is not a problem. >> Okay. >> The building side is not a problem. It's a problem of >> finding just one good sales. >> You just want to get your time back. >> Correct. >> Got it. Okay. Heard. um you're it's going to be outreach and I would literally just reach out to other construction sales people who sell luxury

11:13>> and I've tried that with a nice professional formal letter because from what I've heard today >> to bring them on and say hey if you like the opportunity >> and it didn't work so I was just wondering >> do you like sales navigator LinkedIn DMs? >> Uh no I just looked at you know the top producers in my area in a players are obviously working. >> I would expand the region. Okay. I would offer relocation packages um for people who are really good. I would use LinkedIn as primary method though. Okay.

11:44For sure. All right. I know that was a very easy one. Thank you. [snorts and clears throat] I'll say this before you jump off. Um most people here suffer from insufficient volume is that you're not doing nearly enough. It's like I I don't know how many you reached out to, but it's like I reached out to 15 of them and nothing happened. And so it's like you just need to add like two zeros to effort and you'll get what you want.

12:09That would be real. That's like what it is. Yeah. >> Hey, Alex. >> Hey, Mark. What's going on, dude? >> We did it. When my uh when my wife was in labor, I worked from the hospital room on my laptop during the hours she slept. I promised her for years that all of this would pay off. But right now, we're crammed in a tiny house in LA with two kids under 18 months. And yes, the second one was not planned. I run a poker coaching business and I was at your workshop nine months ago. We were at 2 million a year then and we've doubled to about a 4 million a year pace this year. But my goal is a million a month.

12:40>> What's stopping me is I can't figure out how to scale demand past what our warm audience generates. We've got nearly 200k YouTube subscribers and we close over 40% of the people we pitch into our 5day 5K program. But we only sell 30 something seats a month and we have capacity for triple that. And every cold audience funnel I've tried has come back break even or worse. I was hoping you could tell me exactly where I'm [ __ ] up so I can buy my family the house they deserve. Well, first off, thank you for that context. Um, that's it sounds like you have a crazy story right now. Um, right now your cold like cold traffic is the natural funnel that should be added on to what your exist like basically warm is only going to get you whatever warm is going to get you. And you probably have a a warm sales motion rather than a cold sales motion. And so when cold traffic is going through a warm motion, it's not converting. And so we basically need to change your sales motion from a warm motion to a cold motion. And so there's two downstream benefits of that.

13:33The warm when warm traffic goes through a cold motion, they will be more sold and more likely to take a higher priced offer. And when cold traffic goes through a cold motion, they'll just be more likely to buy. And so basically, we need to microwave your cold traffic to make it warm. And so that's the basically the the step in the process that's probably missing. So walk me through the cold traffic funnels that you had um leading up to this. And what is the actually let's start with the warm and then we'll do the cold. So what's the warm traffic funnel right now?

14:03>> Warm traffic funnel is just VSSL into book a call. >> Okay. Yeah. So just a basic call on warm traffic >> and we also have a warm direct response that is printing as well. It just that one fatigues really quickly. So we have to keep spend down. >> So it's just bottom of funnel that's the issue. So basically it's functioning like that that direct response kind of like hey come to the thing is taking the the bottom slice of the pyramid the people who are like 6-in putts and then just putting them in. So in a lot of ways they're just retargeting but you're looking at like how do I get more people in top of funnel uh into my world.

14:35Correct. >> Correct. Yes. >> So there's a there's a couple ways to do this. Um I call it the short-term and long-term way and we could have a combination of both which is probably what I recommend. So the the call call it the blended way is to run a paid workshop. So when I say paid workshop, I'm saying like uh call it a a $49 to $99 offer, probably 99. Um and have it be a legit workshop. And then that workshop will allow you to take like it's much easier to get someone to buy a $99 thing than how much is the uh poker coaching?

15:10>> 5K. >> Okay. Yeah. So it's much easier to get those guys to spend 99 and deliver one thing. uh that's you know super valuable. You prove the value, right? That that way they don't have to guess is this guy good or not. You can take the time to tell them who you are and then the vast majority of it is going to be the value and then you make them very a nice irresistible offer of taking the next step. And so basically you book your calls from that live thing rather than from like a short VSSL. >> Cool. We tried a cold webinar and it's it's flopped a couple of times.

15:38>> Yeah. I'm guessing was it free? >> Yes. >> Yeah. So, I would I would make it paid and just expect that you'll um like expect to lose money on the you know the $99 purchases. But what'll happen is I'm going to bet that the people who did like did no one show up or were the people who showed up not qualified? >> We had about a 25% show rate. But >> that's fine for free. That's fine. >> Yeah. Only 5% of those booked calls. The retention was incredible, but only 5% ended up booking calls. So what's what's likely is that the vast majority of people who showed up to the call did the webinar were unqualified.

16:13Did you have any metrics on the customers like from the opt-in of like who who was qualified for the thing? >> It seems like even the ones that booked calls it just most of them could not afford the thing. So that's where that's where like having that little bit of friction will typically take the the unqualified from like 90% which is probably what it was uh to closer to like 40%. Uh on a paid a paid workshop and once someone makes a tiny purchasing decision likely they make the next purchasing decision significantly higher like buyers buy more.

16:46Does that track? >> Yes. >> So basically just run this to a sales page stack the living [ __ ] out of the bonuses. Um, so that it just be like the the $99 should feel like absolutely absurd and then make that call it like a threehour uh workshop and then just sell at the end. >> Cool. Okay. >> Does that make sense? It was just you just you just had to tweak it. That's all it was. You were like um free sometimes can be harder and especially since you have an audience. It's like these people have some level of trust with you and so it's like let's just get let's let's deliver more value prior to the ask

17:20>> 100% >> and qualify better. >> Yeah. I would also on the opt-in form are you um getting qualification data. >> Right now we're only asking for name, email, number. >> What do you know? What is what what behaviors or characteristics um does someone have to have um to be a good buyer for you? the average amount that they buy in for is our highest quality signal player.

17:47>> Oh, okay. Cool. So then I would just add that as one of the fields. So you have name, phone number, email, average buy in for the games you play. >> Cool. And do we DQ people who don't? >> No. What it'll what it'll do is you're going to get that data. Um, and you can get a little bit cute with uh Facebook and have different thank you pages for the people who buy and are qualified or don't buy and are not or buy and are not qualified. And then you can train the pixel data on the more qualified audience.

18:18>> Okay, cool. Yeah, we're doing that for uh for our organic right now anyway. >> All right, cool. I'm just writing this down for myself. Okay, so number one, we switch from free webinar to paid webinar, which is not even a webinar, but we're going to change to a workshop. And then number two, that maybe 90-minute thing that you were doing before, expand to three hours, deliver true value for 99 bucks. And then um on the front end, we want to make sure that we add the charact the highest signal, which is the buyin, to the intake so we can start optimizing all of our ads around it. And you can quickly see what your true conversion percentage is because I actually care very little about the webinar conversion percentage.

18:59I care a lot more about what the qualified conversion percentage is because maybe you had 5% that closed last time or whatever it was. No, 5% qualified, whatever it was, but like if if you closed 50% of the people who were qualified, it's a banger webinar. It's a traffic issue and that will give you a much better uh read uh cuz if you're going to do these week to week, which I'm sure you will, you will be way better at predicting what the revenue size of the, you know, workshop is going to be based on how many qualified are there, not how many leads.

19:27>> Cool. Okay, >> rock and roll. >> This tracks. Yeah, I appreciate this. >> Yeah, and juice the hell out of that $99 offer. That's the third thing. >> Just give away a ton. >> Yeah, make it Make it absurd. There's no reason someone should not do it. >> Okay, great. Thanks, Axe. I uh I appreciate it. Once again, >> congrats on getting from two to four million. >> Thank you. Next time next time we talk, hopefully it'll be over 10. >> Million a month, baby. >> Uh I sell barbecue to people. >> Sweet.

19:51>> U lot of catering in some restaurants. >> Well, it's probably like men over whatever like being real, but Yeah. Yeah. Uh, and, uh, we do, uh, we did 1.2 million last year. >> Um, I'd like to do 10 million in three years. >> Okay. >> Um, one of the things that's definitely stopped me is I'm underpriced. >> Okay. >> Uh, now I was talking to Ed and uh, suggested I have a broken model. >> Okay.

20:15>> Uh, yeah. >> Yeah. Right. Yeah. Um, okay. So, you're doing one, two, and you want to get to bigger. >> Yeah. >> Is Amazon primary channel? Uh, no, mostly word of mouth. >> Oh, wow. Cool. >> Yeah. Neat. >> So, we Yeah. So, we do a lot of uh 80% of our business is barbecue catering. >> Okay. >> And then uh we >> Wait, barbecq Hold on. >> Yeah. Yeah. Yeah. So, we I do barbecue catering. >> Okay. >> Yeah. And then >> cater. >> What's that? >> So, you're a caterer?

20:42>> Yeah. Yeah. Yeah. >> Got it. I totally thought you were selling tongs. Okay. Got [laughter] it. >> Yeah. No worries. >> Okay. >> Yeah. >> Got it. >> Uh and then uh we're also open a couple days a week. >> The brushes and the tongs. That's what I thought we were coming from. Okay. Got it. No. Meat. >> Yes. Got it. Yeah. Uh and then uh the other part of the business is restaurant. We're open a couple days a week. Uh kind of. Yeah. >> Got it. Okay. So, what do you you want to what do you want

21:08>> do more? I want to do I think you'll probably need to pick one or the other. Realistically, it sounds like the catering business is more scalable. Not either business could scale, but >> the restaurant's going to be limited by your four walls relatively quickly, whereas the catering, not so much. And you can, you know, you can do a lot of catering um in a local area to make a lot of money. So, what stops you from doing that? >> Uh I feel like we're starting to get capped in those four walls as well. I mean, we did almost a million in catering. Uh

21:37>> but are there four walls or you going to someone else's four walls? >> Well, we uh we we actually will produce at our commercial kitchen. We'll push uh you know up to 10 10 teams out >> feed well over a thousand people out of that one kitchen. >> Okay. >> Yeah. >> And so you have a kitchen constraint. >> Yeah. >> Okay. But the catering business itself is fine. You just need a bigger kitchen. >> Yeah. That that that'd be one of them. Yeah. And then more then more leads.

22:02>> Okay. So can you currently handle more leads or are you at capacity right now? >> It it's seasonal. So, I think on the busy seasons we're hitting capacity and then on the the lower seasons we're >> Amen. [laughter] That was the first phone call I've ever had taken inside of a conference. Um, sorry. Go ahead. Um, no, the from a catering perspective, I think that [sighs] volatility is part of the business. So, you're not going to really change that.

22:38you need to be make sure making making sure that you're printing money in the onseason so that you can make up for the offseason. So volatility doesn't in and of itself mean that there's anything wrong with the business. So like Harry and Davids makes like 80% of their revenue in December >> and they lose money the other 11 months of the year. Seas Candy, same thing. They make the vast majority of their profit in Q4. And so that's not uncommon. And you're in a food kind of celebration type business. So Q4 is probably I'm guessing where your season kind of

23:02>> uh there's big weddings. The season for us is actually spring and fall. Interesting. And Yep. And then Q4 as well. >> Got it. And so spring, fall, and Q4. >> Well, yeah. So, so, >> so three of four quarters you're doing. Okay. >> April, May, June, and then September, October, December. >> Dude, I don't think you actually have volatility. I think you just need a couple more leads and you'll smooth out your curve. Because if it's barbecuing is outside, then it's like you got your spring and your summer covered, and then you've got celebrations that are happening in the other part of the year.

23:27So, it doesn't really say like I'll tell you. So, some of you guys have this artificial constraint being like, you know, you know, March is always a bad month for us. It's like, why? There's no actual reason. It's just like historically then we start having a self-fulfilling prophecy of like said differently. >> If you were able to mop up all the demand for catering every month in your market, would you be able to handle it? >> Uh probably most

23:52>> Let me say it differently. If your worst month of the year traditionally you were able to scoop up everyone else's catering business, would that now become the best month of the year for you? >> Uh pro >> for sure. You're doing a million a year for [ __ ] sure. >> Okay. All right, let me save the answer. So the point [laughter] is is the point is is that all we have to do is just outmarket the competition so that that that'll basically smooth out the demand curve. >> Okay. >> Right. So you don't have volatility, you just need better marketing. Okay.

24:18>> And so from a lead genen perspective, um right now you said word of mouth and what's the other one? >> Uh >> just word of mouth. >> Yeah. Yeah. We just do a really good job and get people to refer people in. >> Yeah. So um I think for your business uh catering gez uh paid ads like meta ads probably work just fine. >> Okay. Yeah, I actually I think you'd probably get away with it pretty well. Um, PPC would also probably do well for you because people who have high intent who are looking for a caterer. Um, if I were to start with one, I'd probably start with PPC.

24:45>> Okay. >> And then I would move on to meta, but I think PPC is probably the highest likelihood because it'll be the warmest leads. They're high intent. You'll be you'll pay more than you're used to. >> Well, you're not used to paying anything. So, [laughter] so you'll actually learn you'll have to learn how to work leads. And so, this will be a big shock to your system because they won't just like immediately get on the phone and then give you money. you'll actually have to have a process in place. Um, but yeah, we can help with that. But that's kind of the general gist. You'll have to have a landing page. You'll have to have a lead nurture process. You have to get them scheduled. You'll have to, you know, have them watch a little VSSL beforehand so you kind of frame what they're getting into and what to expect. Then when you get on the phone, you can go close them.

25:19>> Cool. >> But yeah, that's what you have to do. You have to advertise. >> Sounds good. >> But let's dive into uh let's dive into some page reviews. So, this is going to be a little bit new. Um, I've got a big list of pages. I'm going to see how many we can get through. Um, and then we'll go into cues. Sound good? All right. Fantastic. So, uh, let's let's dive in here. All right. So, uh, overall this looks simple. Let's see here. Sounds good. Uh, some testimonials. Great. This is neat.

25:50Strength fitness. Got it. Got it. Got it. So, if I were if I were to if I were to do a tear down of the page, um, first off is I'd consider having a video here that kind of walks through the major components that you talk about inside of what's included. And so, that would just be like, hey, like this is what we do with the workouts. Let me show you what the workouts look like. Let me show you what the section on nutrition looks like. Let me show you what our uh meal plan looks like. Let me show you what the community inside and some of the challenges of people are participating. Um, let me show you the the network that we have. So, you can show the the group, the number of people that are at it. um some like recovery techniques. So you could just show the show the section that you have in recovery and and show that stuff and then I think this will be super super uh valuable for a lot of people. So this would probably be one of the ones that I either either I do it right off the top in the beginning or I would close with it. So it's like I either want it to be the first thing they think of and be like whoa this is really cool or I would want at the end. So it's something called peak end bias in terms of videos is that people from the peak of a video the peak emotional state and they remember how things finish. And so I would want to either have it sandwiched to the front or the end. Number one.

26:59Number two, I think that these slides right here are I think they're they're they're potential like wasted opportunities maybe a little bit strong for what I'm saying, but I would want to show like this is great. Like this is really good. A little bit harder to read. So I might use fewer of them and highlight the parts that I want someone to read. So I want to direct someone's eyes here. So I might have three that I think are the best. And I would highlight the portions of text because like the person's gonna like if you ever watch screen recordings of people doing stuff like they skip around really fast.

27:31And so you want to just make sure that you like here it just says it's if I were to click through this I would just say people say nice things and then I would just move to the next one. Like I wouldn't even read it. I would just know people have said nice things. So I'd rather pull out one to three really meaningful ones. Um, so right off the bat, um, the video would be first, that would be second, where I'd highlight it, and then these each of these tiles I think should represent images from these things that are included, right? So if we're thinking about this from a features perspective, it's like the video does the overview with a voiceover of all the things, right? And I think fundamentally you just want to say here's what you get like just very straightforward and here's what it's going to help you solve so that you can very simple process like we have this so that you can have benefit. We have this so that you can avoid bad thing. We have this so that you can have good thing. We have this so you can avoid bad thing.

28:19Right? It's more good or less bad. That's fundamentally just sales how it works. And if you think about value overall, you think how do I make it faster? How to make it easier? And how to make it risk-f free or how to make it guaranteed. So there's the elements that you want to be mentioning when you're talking to the bullets. So does this thing make it more guaranteed that they get the result? Does it make it faster that they're going to get the result? Or does it make it easier for them to get the result? And I like to emphasize one of those three points when I'm making each of the bullets. Now, with this, you have you have healing, you have some elements. You have discipline and focus.

28:51You have I'm guessing some sort like you have training. So, you've got like muscle elements. So, there's a lot of basically solutions being presented here. And I'd want to boil it down to like what the main outcome that they're going to get is um from here. So TLDDR video first, the structure of the video I went over already. And then each of the tiles I would use to highlight um one key thing. And so now that I'm talking about this out loud, I would have a picture of the stuff and then I would have one testimonial superlaid over it about that thing. So it's like here's the meal plans and then there's Sarah saying like these meal plans are so amazing. I thought it was just going to be some generic on the internet, but these actually really helped me out and have made fitness so much easier for me.

29:33Boom. That's the testimonial highlighted. Great. Next tile like uh workouts, right? It's like, hey, and then obstacle will probably be like, can I do these at home? So, someone's like, I thought I was going to need a gym for this, but I actually can do these at home, and they're really challenging, so I think I'm going to have like, you know, a year plus before I'm going to beble to do some of the more advanced stuff, but it's really nice because he aggresses it down to somebody who's at my level, who's just getting started. Great. That's the testimonial around the feature. So, it's like feature, testimonial, or feature, biggest obstacle. And so, I would think about that when I'm going through each of these tiles uh to make it more compelling in terms of the actual words themselves. So, let me pull this page back up because I'm still looking at you guys are looking at my face. Um I like the prices going up uh soon thing. I think that's great. Um okay, this is fine. Um let's see here. Workouts. Yeah, this is more or less the bullets. So that's fine. Um I I would I would maybe consider like I said I mean this is at the end I would probably start with this one because it's super compelling like direct access just for everybody here like access is what groups approximate like they basically instead of getting oneonone with you they get one to many with you and so you want to show any degrees of access that you are providing that this looks like it's one to one to one um you want to show that now it might just be like responses from the master or whatever um but you want I would want to hit with that first because I think that would be really compelling. Um, and yeah, these things are are nice. So, yeah, I think I think fundamentally the words look okay, so I'm good with that.

31:08Um, I I don't I whether the emojis or not do anything, that's something that we can probably figure out at a mega level, whether bullets or check marks work fine, whether each of the individual emojis. Do I think it's going to have a huge effect on the conversion? Honestly, probably not. But I think the fixing this stuff would be the thing that'll drive the most throughput in terms of uh conversion optimization. >> I'm in the restaurant business. So >> restaurant business.

31:32>> Restaurant business. Uh we do about 25 plus million in revenue. Uh we're trying to get to 100. >> Amazing. How many locations? >> We have six. >> What's the What type of dining? >> Uh actually there are five different concepts. Uh two two that are American Pub Fair. >> At least you're focused. That's good. >> Well, there was >> They're all restaurants. There was a lawsuit that got in the way of growing brand. So, um, what's stopping us is probably to be truthful is me and my business partner, which I dragged here.

32:00Uh, I'm more >> business partner, >> business partner over here. Yeah. >> I'm more the frontf facing marketing person. He's the implement finance guy, right? >> So, I thought I'd bring him, you know, to listen to the spiel, right? >> So, if I'm looking at the business worksheet that we filled out from the beginning, >> the problem is the LTV to CAC. How do I I don't have those numbers, right? Yeah.

32:22>> So in a restaurant I have let's say >> I have information from our what do we say our programs >> yeah so restaurants is a such a unique business um >> the thing is is like more than anything and this may sound ironic it's like on the polar ends of business you have restaurants on one side and then on the other side you've got super high-tech and they both converge on the same truth which is that in the long run product is the only thing that matters and so at the end of the day you can do all the marketing things you want in the world if the food sucks the food sucks.

33:01>> True. >> And if the exper and also it's obviously tailored with the experience, the service, the environment, all those other things, but if the experience overall is noteworthy enough, then you get a lot of like, yeah, it was all right. And then they never come back and then someone's like, "Oh, I guess we won't try there then." Right? It's that those tiny little because most people do find restaurants through word of mouth and reviews. It's like 90% those two sources. I mean, not many people are scrolling Instagram and are like, "Oh, I will respond to the buy one get one." Now, the one exception to that is when you have a grand opening, which you should have, I'm sure you do have hopefully have a grand opening strategy for future locations. Um, that for sure is hardcore marketing that you're doing. But the idea is that you never do grand openings until you know that the model that you have, the experience that you deliver, the food that you make, when someone comes in, you know that off of the grand opening, you can get that that that location to full capacity within six months, just off of the word of mouth of basically the initial push,

33:58>> which by the way is how all brick and mortar should work. with restaurants, it's just more exacerbated because data collection's harder and gross margins are smaller, >> right? And so, um, basically, if if you're like, how do I how do I aggressively grow the business? It's going to be mostly the food and the experience, >> which is the sad and also amazing. >> How do I get the finance guy to spend money in marketing?

34:25>> Um, >> because if I'm looking for that number, that CAC number. Yeah. I don't know how to to get that number. >> So right now, let's say let's say hypothetically you you spend zero dollars on marketing just for, you know, shits and giggles. So it's like, well, what's our marketing expense right now? Well, it's zero. You could just reframe that question, which is like, what do we like, what do we pay in premium across our systems, our service, and our and our ingredients that increase the virality or word of mouth from the business. That alpha, that spread is basically the marketing. you're just doing it in the form of product. Um but to get that um finance guy to open like you need to have a grand opening playbook that needs to include what overstaff we do. I mean what over staff we do and how much money we're going to spend on ads across all channels and what are the kind of promotional giveaways that we're going to do in the beginning unless it's super premium. But even then the giveaways still happen.

35:19They're just different. >> Giveaways are still the way as like grand opening strategies. It's just going to be exclusive and invite only and things like that, but it still works the same way. >> Okay. Thank you. Appreciate. >> So, my name is uh Yur Smith. I sell car loans to entrepreneurs. Uh we do 6 million revenue. >> Cool. >> We'd like to be at 30 million revenue in 2027. >> Okay. >> Um what's stop what's stopping me is that the CPA is getting higher and higher. When we started out, it was like €400500.

35:50>> Mhm. >> Uh now it's almost €900. sometimes even thousand >> and I think we're overcompensating the sales reps. >> Okay. >> Like 30% of revenue is for uh >> uh wages for sales reps. >> What do you what's LTV to CAC? So what do you make on a loan? >> Like 2.5. >> So you make $2,500 and it's costing you It was costing you 600. Now it's costing you 900 for the same deal. Is that correct? >> Yeah. >> Okay.

36:16>> Something like that. >> Okay. Um, I actually just wrote an email about this today, which will go out in like six weeks. Um, so, uh, fundamentally, if ad costs are going up and so you feel like there's some sort of ceiling, like you want to spend more, but you can't spend more cuz the ad the cost goes up, there's basically one of three potential problems for solutions. So, problem number one is that the LTV needs to get fixed. And this is just a fact of life. As you go to colder and colder audiences, you you get out of your kind of honeymoon phase of the easiest targeting which the absolute highest interest, you know, most you know what I'm saying that very small amount of people who are perfect fits and then it just continues to go wider and broader, right? And so the way to fix that is that we have to increase LTV so that you can spend more. The second um reason that this would be limited is based on the quality of the creative.

37:10And so, um, uh, I think a month ago, we had, uh, you guys seen the, um, Old Spice ad, the the, you know, the the guy that whole famous ad. Um, so the guy who made the ad actually came here. Uh, kind of cool. Uh, so I, we got to chitchat about that. Um, but what's interesting about that ad is that that ad was so good that they could show it to everyone and they went from like 20% of the market to 70 with one ad campaign. And so to me that is like the the perfect example of what like complete S tier creative like the maxed out creative of just amazing advertising is. And so a lot of businesses will get stuck at $1,000 a day for example and say like I think I've we've capped our market when in reality it's you've capped your creative.

37:59And so in order to break through that the quality of the creative needs to go up and the volume also needs to go up by consequence. And so in the companies that we spend like a h 100red,000 a day in in terms of our uh ad spend, we we create, you know, 50 100 pieces a week that are going out in terms of ads. And then we do that at first and then we follow kind of Google's 70 2010 kind of rule, which is 70% of the creative that goes on from that point going forward is the highest performing hooks from historic. Uh 20% is kind of adjacent to that. Uh, so just kind of like remixes, remakes, slightly different versions of the originals. And then 10% is the wild ideas that you've been saving. But since it's only 10%, you're going to only pick the ones you're like, I think this one's going to work because you have 20 crazy ideas cuz you're an entrepreneur and you think that'll be awesome. But you just got to pick the one or two. Um, and so that's problem two that could um be the reason that that that you are capped.

38:58So, um either you are not the creative sucks, your LTV is too low. Um and there was a third one which I forgot. Uh but there were three in the email. And so, uh the question that that I would have for you is which one of those do you think is the issue? >> Um I think the LTV is like is is too low to kek. So, we have to uh make the LTV higher.

39:24Um but also we we have to get more creative um better hooks. I think that's the the key to uh better scaling. >> The back end becomes the arms race of every business that spends money to acquire customers, which is many businesses. Uh, and so if you look between industries, the benchmarks for plumbing businesses in North Dakota, the cost to acquire a customer is going to be more or less the same between businesses. So, as much as we like to think that we have some like very special sauce about like our sales team somehow magically sells different, even though we recruit from the exact same pool and compensate the exact same way, like we think it's somehow different, but in reality, like we run similar ads, we run similar promotions, we have similar sales team, similarly compensated, pull from the same talent pool. And so, so CAC is typically very similar between businesses, but where you get the outsized returns are that some businesses can have 10 times the LTV and that's how they ultimately win.

40:21So, I think you're right. Um, so when I when I buy a business, I I typically fix it back to front and then I look at the creative and think, okay, how do we just do a ton more volume here? Typically, because we just don't even have enough data to figure out what the best ones are. So, like, let's do way more, then look at the top 10%, then do more of that. And that process just never ends. Please roast me my about page. Let's see. Let's take a gander, shall we?

40:47All right. Um, understand for yourself. Okay. Have you gone through the uh the actual page roasts? because I would um I would throw that in there. Uh because you probably want to have a little bit more social proof if you can afford it. Uh this is where I would have people go for like help people for free. Get them to leave you a testimonial so you can get like 10. I would say that's a nice rule of thumb is like get about 10 testimonials of people that you've helped do whatever it is you do. So decoding human behavior. Um, so help them and then put those testimonials up here and I'd rather them be written uh and highlighted around the key points with maybe an image or screenshots from inside of the community. I think those will be the main things. Um, beyond that, we want to talk about the features. So, these two don't convince me to buy. So I want each of these images probably one of these or two of these to be lots of compelling proof or my favorite version of this is feature proof related to feature being the thing that unlocked their human whatever right so it's like if I have my you know decoder method and then I've got Sarah who's like man the decoder method on its own was worth this whole thing I like I had you know I fixed all this [ __ ] in my past whatever and then the next one is the the six-step, you know, stress framework, whatever. And then you've got John who's like, "This thing is worth its weight in gold. I would have paid two years, you know, I went I paid $5,000 of therapy and I didn't even get this kind of clarity and I got in the first week." Right? So, you want each of the features to be paired with a testimonial or two that proves that the thing is valuable. And so, that's what each of these things are. And I would lead with the video. Uh, so that probably be the the the first one actually. I mean that one I haven't split tested on. So that's so that's that's just a personal preference. Um and then let's see this first guy. Uh follow your heart and so this doesn't increase the likelihood that I buy. Um and so I want this I want this to be a promise. Okay. So you want promise and you want some level of proof. Okay. So promise would be like uh we help you get this result in this period of time and then some sort of unique method. And then proof would be 38% of people within the first month knock out one of their core anxiety things. Whatever, right?

43:19You want to show that. And if you're like, well, I don't have that stat. That's why you survey your members so that you can get data so you can make those claims. Okay, so that's the stuff on this page. Uh, let's look here. So, harsh awakening, cockroaches in the floor, 200,000 in the bank. Okay. Um, sounds familiar. I don't think this will actually sound familiar for a lot of people having 200,000 in the bank account. Um, I don't I don't think that'll resonate. So, this is weird because on one hand you're trying to show rock bottom and on the other hand you're saying you have a lot of money and I think it's confusing. So, either like either flex about the money or the money has nothing to do with like either either pick rock bottom or rock top.

43:59Don't do both. So, rock top is I you know I had the penthouse. I had everything but like in inside I felt meaningless and I didn't want to keep living. That's a rock top moment. Rock bottom is, you know, I just I just woke up with vomit on my shirt and a needle still stuck in my arm and I was like, where am I? I need to change something about my life. That's rock bottom, right? You have to pick whether you're going rock bottom or rock top. And you know, candidly, richer people have rock top moments. So, if you're going to sell to wealthier people, maybe that's who you want to attract if you're going to have that be the lead. Um, again, I'm not I'm not against a story lead, but I'm guessing that most of the people who are going to this know who you are, at least at this level. So, I'd probably start with the promise of like what you're actually going to help them do.

44:46And so, um, when your heart's so big, okay, so this looks very poetic, but it's it has no fe like what do I like I have no idea what I get in here. And so, we just need to be really tangible about what it is that they're going to get, why it's important, and how it works. That's it. And then the rest of this is proof that it will work for them. And we use the rest of these people as basically trying to cover or paper different avatars saying like, okay, if I've got Sarah who's 60 and she's black and I've got Brian who's 25 and he's white and I've got, you know, whatever, Lee who's [ __ ] Asian and whatever, right? Like that's the point. Say you want to show different demographics, different psychographics, different age groups. And if if you're trying to go wider, if you want to just do dudes, again, I don't know the who here. So, there's a lot of things you got to get clear. You got to get who am I trying to serve? What am I going to help them do?

45:39How am I going to help them do it? When am I going to help them do it by? And this is just for everybody here. It's like if you don't know how to answer the the who, what, where, when, why questions, start there, like just go through the questions and it makes this a lot easier to make these sales pages. And the rest of it is just proof related to each of those points that you really can do what you say you can do. Okay, cool. You guys like that? Great. Okay. >> Tracy says, "I'm a life coach building a free community revolved around achieving goals in life transitions with a paid community to convert members. The value within the community is there. However, what is your best advice in beginning/building a robust school community with low social media following to convert to my online community?"

46:22Okay, so this is just a simple advertising question. This is the first of the four levers, right, which is traffic. Like, how do I get more eyeballs there? And so, you really just need to pick, right? You can post, like we talked about earlier, on social media. You can post in subreddits and forums for people. Like, some people really don't get this. Like, Reddit, for example, has forums of just students, of just architecture, of like whatever whatever you're into. Like, there's a Reddit for that. Um, like there's a Reddit for potted plant porn. Like, there's whatever you want. Uh, and so you can find stuff, right? uh and people that are there that are targeted. As long as you add value to that community, people will be interested. So that's like at the micro level. Uh Twitter is also a lot like that too. Engaging in the in in on people's feeds who are focused on a niche as you just comment back and forth. You can DM people um that you've engaged with. But you're either going to reach out to people, you're going to make content, you're going to run ads.

47:13>> So just pick one. And if you're poor, start with reaching out. And if you're less poor, make content. And if you're the least poor, run ads. Jamie Medlin. Car washers or can washers or car washers? Can washers. Trash can. Okay, >> cool. These are fun. I love these businesses. >> Hello, this is Jamie. >> Jamie, let's talk about uh washing cans. >> Hey man, how you doing?

47:39>> Good. So, you got what? 300,000 top line, like 120ish bottom line. Is that what I read? >> Yes. >> All right. Got it. So, cans. Got it. Okay. Fun little business. >> Love it. Great gross margins. Really? I actually find I actually really enjoy the business overall. Okay, so 300k topline. You got good margins already, which is actually not as common as you'd think at the size you're at because typically it's huge as great incremental margin, but typically up front. So you're probably running this very lean, I'm guessing.

48:07>> Yes. Awesome. >> It I mean, yeah, it's it's it is, >> dude. Keep it up, man. Okay. So, what uh how can I help? Well, um, you know, one of the things that's kind of my go-to strategy has been offering a 50% off the the initial service and we're leveraging Google ads and a lot of Facebook as well. So, >> okay. So, you're just running a 50% discount on canwashing and then I'm guessing you doubled your price to get your 50% discount.

48:39Yeah, but I'm I'm still finding that, you know, I I really feel like the volume of new customers is pretty low. And >> you know, in our industry, which, you know, I also have a large Facebook group that I help others with, and >> we have a CRM we built. Um, >> it's it's one of those things where I'm I'm I'm finding that hundred or so new customers a month is just really low.

49:05>> Okay, let's do some math. Let's do some math. Okay. So, what's what's the uh what's your average price point per can per month? >> So, >> this will be fun for everyone watching. So, I'm I'm going to do some math with you. It'll be fun. Okay. So, average average revenue per can or per Yeah. >> So, with our pricing model, we're our average I would say subscription is is important here as well. >> So, our quarterly subscription is the most common.

49:30>> Okay. >> It's about 70% of what people sign up for. >> Okay. And with that around here, >> on average, there's about three vins that they're selecting. So, our base price is $35.99 for the first can. >> Okay. >> Then, and then it's $5 for each additional. >> Okay. >> So, it's about 40 >> I would say the there are the onesies, twzies. So, I would give you about a $40.99 average is what our

49:59>> Okay. I'm going to use 40 as simple math sake. So, 40 bucks every quarter, right? Yes. >> Okay. 40 bucks a quarter. What's churn? >> Um, you know, I would say about four cancellations per month >> on what? >> Oh, yeah. Yeah. Yeah. Churn percentage. >> How many clients do you have on the How many of the four are you? How for for how many clients do you the four contributes to how many on the base?

50:25>> So, we have we have uh over a,000 subscriptions. >> Okay. So, 12 12 cuz it's times four. It's times three, excuse me. So it's four per month, but you just gave me quarterly billing. So I need quarterly churn. So that's 12 people per quarter who are churning. So 1.2% churn per quarter, correct? >> Yes. >> Okay, got it. So this will be fun for everyone. So $40 divided by 1.02. Where's my little calculator? I mean, it's time 100, but I'll just be precise here. Um 40id 012.

51:00So, you have a $3,300 LTV. All right. >> Yeah. Great. >> Great. And how many And what's your sales velocity right now? How you're saying 100 deals a month? >> Yeah, I'd say last month we had about 130 new new signups. >> All right. So, it's roughly 70% quarterly and the rest are one-time visits that we we put on a we we do what we can to send promos and try to get them to repurchase, but it's Yeah, that's what we're

51:34>> So, 70% are on subscription and 30% are one-time cleans. >> Correct. >> Yeah. Yeah. Yeah. I mean I you So I mean is your recurring should be stacking every month, is it not? >> It is. >> Okay. Well then, dude, I think you're >> it's a slow growth, but it's growing. >> Well, yeah, because if you look at the sales velocity, it's like you should be I mean you you actually have a shitload of runway right now before you even get close to your hypothetical max.

52:07>> Yeah. And that's where we are, you know, from a routing and just growth perspective, we're really pushing quarterly because there's also the additional uh, you know, our monthly rate, which we just increased actually to kind of leverage the we want the customer to essentially go to quarterly. I could stack more customers and I have more cancellations on my monthly subscriptions than I do my quarterly. >> Of course. Yeah.

52:34>> Um, >> you go to annual even less. Exactly. And actually, our annual plan is the most canceled because they're like, "Oh, what? Why am I getting charged a year later?" This >> forgot. Yeah, that's fine. That's fine. It's fine. I got you. >> So, uh yeah, I mean, we're and the the part that I'm I'm kind of struggling with is, you know, with our Facebook ads this this last month because we also have the the weather, you know, and the and the this I would say the shoulder seasons through winter. like it's just slow. It's it's almost, you know, 80% of what we actually get on signups. It's just people aren't there's not really a ton of um I guess urgency for them to buy.

53:21>> Yeah. So that 130 per month is only in high season, not in year round. >> Correct. >> Okay. So if you really like sales velocity times LTV evenly distributed per month of the year will give you your hypothetical max. Have you done that math? >> I haven't. >> Okay. So I'll tell you I'll tell you a little secret from an M&A side. One of my favorite things to do is try and buy into a company where they're selling they're like we're doing 100 deals a month and we're doing you know we got $20 a month you know subscription but our churn's 5%. And so if I know that, then I know that that company is going to do a,000 times a,000, which means they're going to get to a million a month, but they're currently at 200. And so then I can just say, cool, I'll value the company at what it's currently at, but I already know it has a 5x literally sitting inside of it if I change nothing. And so right now, you're like, I don't know what your true sales velocity is because you said that was a high season. So we actually have to take the blended, so it is lower, which makes more sense for your impatience. Um, but you still probably have a significant amount of runway uh compared to what you're currently at because you're at 300,000 a year and you're like you're way out selling that right now. Um, it's just it just slow because it's so it's so onesie chooses to your point. So I think that um we need to create a So right now you said ads is your primary way of getting customers.

54:37>> It is. And in the summertime we're like this past month we're we're on target to do about 3,000 or more >> Yeah. >> in ad spend. Yeah, which >> you know my and with that 50% off I'm I'm kind of my new customers are essentially covering my cost >> Yeah. >> um of acquisition but we're still obviously you know u it's it's not really where

55:03>> Yeah. Like can I can I can I can I give you something? So right now you could probably spend more money and get more customers. Correct? >> Yes. >> Okay. So, you're in a business that's capital intensive. It's just the nature of the business you're in. It takes more. It takes a ton of time to get it spun up. You have to have trucks. There's all this other stuff, right? It is capital intensive, which is why many people do take on funding or take big loans to start this out because the issue that you're dealing with right now, which is now that being said, you have bootstrapped it, which is great, right? But basically, that $120,000 like what does it cost you get a customer right now? I'll bet you it's nothing.

55:37>> About $25. >> Yeah. Right. Dude, your LTV CAC is through the [ __ ] roof. So, like said differently, if I were to take that $25, like your $120,000 of profit could translate to $480,000 customers. Sorry. Sorry, I did that math wrong. Sorry, I did it quarters instead of $25. My bad. So, divided by four. So, it' be 40,000 customers. 30,000 customers. Gez, sorry, my brain's going melted. So 30,000 customers is if you took a 100% of your personal income and put it into the business as advertising.

56:11You would make no profit, but you'd grow a lot faster. And this is fundamentally like this is the nature of why V like this is the way VC back companies are supposed to run. Now many of them have just like messed up economics to begin with, but you have extremely good economics. It's just at a delay for you to recoup it, but they essentially become an annuity because your turn is virtually nothing. >> So here here's a question. Would you, if you had $120,000 to dump into ads right now, would you?

56:37>> Yeah. I mean, you know, I'm fortunate in this situation that I'm I'm kind of a uh an absentee owner in this business. >> So, this is thing. This is a this is a no question then. So, if you actually can provide for yourself, I take that 10,000 a month and I say 10,000 buys me 2500 new clients a month. >> Correct. >> That's $4. Jesus. I'm sorry. my like my brain is dead. Thank you. $400, sorry, 400 new customers a month.

57:04>> 400 new customers a month uh is what you'd be getting if you put the whole $10,000 in. And so by the end of the year, you'd have another 4,000 customers, 5,000 customers. Um and then again, this starts to stack because by the end of that year, now you have an extra $10 time 4,000, you have another $40,000 a month. Huge, >> right? >> Now, what are your gross what are your what are your gross margins, by the way?

57:30So, it's it's about I mean >> because you are pretty cheap. You are pretty cheap. >> Yeah, it I I would say it's it's around >> Excuse me. I don't I actually would need to to double check this. >> Yeah, >> worth knowing. >> Yeah, >> worth knowing. >> Yeah, it it is. It's just Let's see. I mean, like I said, that was kind of an annualized uh rate, which was the around 300 or so thousand. Um, and then about 114,000 is our our our take-home.

58:05>> Okay. >> Yeah. >> Uh, >> well, go ahead. >> No, no. Uh, three really mechanical things. Mechanical thing number one is just for you as the absentee owner here or just the investor, I would say. I actually prefer investor over absentee owner. It's much much better languaging around that. Um I would offer to count all numbers in the same time period because I think if you run all numbers as a quarterly time period number it'll be easy to talk about it and think about it. U especially since your packages are quarterly I would almost kind of

58:37>> your whole your whole life has to be quarterly otherwise it's conf like I sell this many a month I've got churn is this much a month this much is build quart like everything should be quarterly if that's how you build. >> Yeah that would be mechanical idea number one. Idea number two is if you can afford and if you can actually deploy to this 10 grand a month idea into the business and you have the capacity to service it, this feels like a no-brainer to do overall. And the third thing uh this Alex may want to comment on this one is I'm ultra curious about a little bit of sales scripting on the 30% to actually get them to do recurring.

59:10Maybe there is either an offer at play, maybe a rollover offer at play, something at play here because you've already spent you've spent the $25 acquiring the one-time client. Could you and and your quarterly is 40. If I rolled it over, I still make money. >> Yeah. Yeah. >> So, >> so what's the offer that you're giving them? So, I'll give you let me give the nice thing is I've been in recurring revenue my whole life. So, the this this problem's already been solved. So, what do you think? I'm just going to walk you through it. So, what do you think if I if I go and I show up at a gym here in Vegas and I say, "Hey, I want a day pass." What do you think they're going to charge me?

59:43>> Probably nothing. >> So, actually, it's the opposite of that. So, a good gym should charge ton for a day pass for this reason, the same problem you're dealing with, provided you're local. If you're, you know, whatever. Anyways, doesn't matter. So, if let's say the the the membership is uh 25 bucks a month. Okay, we'll just keep it simple. So, it's $25 a month. their day pass will probably be 50. So they say, "Hey, if you want, you can sign up for a day pass or for 25 bucks a day, you just become a member."

1:00:14>> Yeah, that makes sense. And our and on our one time, you know, it is uh significantly more than the quarterly. >> How much? >> And um it's it's about I'd say on average it's about 50% more expensive. >> It just feels like a scripting thing. I think I think you're going to eek out. >> Yeah, >> you're going to eek out some cuz if you can get the 70 >> Yeah, the other >> 30 to even I this may not look like a lot to 80 20 you're with your cact numbers and putting more money in on the front end. This is going to go exponentially.

1:00:47And you know, I've toyed around with the idea of removing one times completely and only offering subscription at this point because we've kind of reached that inflection point where it's like, you know, in the beginning we just really did want to grab as many customers and >> heard >> kind of, you know, garbage can cleaning is just a newer thing. >> Yeah. >> So it was education. >> So you could charge you could charge a hundred bucks for one clean or $40 a quarter. I feel like you do that people are like, "Oh my god." It's like Yeah.

1:01:15So, it's, you know, $13 a month or it's $100 today. It's like, so you're basically going to get, you know, two and a half quarters done for the rest of the, you know, the this next six months if you just sign up, I would just go AB close on this. >> And and I would also say on top of that, if you want to use a money model, right, you want to use the money model mechanism, on top of this being less, I'll also add in this other element that's a sealant that'll decrease the smell of your can or whatever, right? to some some thing some little some little thing that is only available if they take the membership. So, not only is it less, they also get more. When you do that, the AB the the the other onetime thing will will price anchor. So, what you have right now uh when you go through the money models book is read the decoy offer which is an attraction offer. I think it's the third or fourth offer uh in in in the attraction mechanisms and it explains how you can price the difference between both of these things of like what discrepancy you want between the the recurring and the onetime because sometimes the one times can still be valuable, right? Like if you know that you're going to get 10% of people that pay 20 times more, you can factor that into your cost of acquisition and like you actually can cash flow because you said ah well some of these we can maybe break even and as you spend more on ads which you will the cost of acquisition will go up, right?

1:02:27So having some liquidation up front with maybe 10% of people paying four times more not a bad thing. >> No, that sounds good. >> Okay. >> And something that we have implemented is after a one time our automation kicks out like asking if they want to upgrade the plan. >> No, you want to sell them right then, man. You want to sell them right then. So people have very large motivation for very small periods of time. So like uh latency beats intensity

1:02:53>> by a mile. >> Okay, >> cool. So >> hey, thank you so much. >> So I just want to sum mechanic number one is you're going to talk everything in terms of quarters. Number two, you should know and calculate your gross margins. Super important because your LTV I did lifetime revenue, not lifetime gross profit. And we would want to know lifetime gross profit. Number two. Number three, get everything in terms of quarters and then figure out what your hypothetical max will be for the business. Number four, then I would say take your $10,000 a month and I would dump a 100% of that into the business to grow. That's if your goal is to grow to be clear, but I'm I'm aggressive and so I would just want to grow it as fast I could. But I would just say, okay, well maybe if I put that much I don't if I can handle 400 deals, you know, deals a month. If you can't, then just scale your ad spend to your sales constraint and then that'll be the next constraint we solve. Cool.

1:03:42>> Cool. Rock and roll. >> Thank you so much, >> dude. Thanks for donating books, man. Seriously, appreciate it. Who here runs ads? >> Oh, wow. >> Wow. >> What's going on here? >> Yeah. Wow. Okay. Well, then y'all will love what I'm about to share with you. Okay. >> Wait, on what platform first? Hold on a second. >> Yeah. No, this is good. I'm hot and bothered. >> All of you at YouTube. >> This is a unique group. >> Yeah, it was really interesting. >> Yeah.

1:04:07>> Okay. You guys will absolutely love this. Okay. I'm excited. I'm interested in this. So I believe that the future of media between paid and content has completely merged. Like we have reached the singularity of that now. It's done. Like that's not like going to happen. It's already happened. It's here. And so my paid team and my media team have now they're now they're one. And so what we have found to be like what's working now, right? The stuff that's working hot right now. Here's the crazy part. We now mostly because when you asked the question I was like, "Huh, that is kind of what we do." But I was thinking about it because it's not as often as it used to be. And the reason is because we pump out 450 pieces or whatever it is of content per week. And you know what's really cool is the algorithm will just tell you which of these are the are the best and most interesting. And so then what we do is we take those things and then just run them as ads. And I used to think because we did this earlier, probably a year ago, we were adding CTAs on the end. So, it' be like I'd take a piece of content and then I'd be like, "Hey, by the way, get the blah blah blah blah blah." We don't even do that anymore. Just take the ad or take the content and then just just literally put an overlay. Just put a banner that says like, "Click to to grab a thing." Like it people get it. They're they're like, "If the thing was good, they're like, "That was good. I'll I'll take the action the ad platform, you know, allows me to take right now." Whatever the whatever the thing is, whatever the widget is. If I if I'm leading to a a workshop thing or if it's like hey here a scaling road mapap or here are the books whatever like you I could use the same piece of content as long as it's relevant to whatever you know whatever your thing is and most of you guys are still talking about the same topic so it should be fine for me because I do have a wide breath like it would make less sense for me to have a philosophical conversation about work output and then lead to book maybe but like if I'm talking about like more in-depth work stuff like that middle of funnel bottom of funnel stuff the stuff that has lots of saves crush. Crush. And the reason I think that saves thing is important for you guys is look at the content that you have that gives you the most follows, not the most views. Look at the content that has the most saves. Try running those as your ads. And nice thing is with Andromeda, too, you lose so little running a bad ad.

1:06:18So, like, at the very least, some of you guys aren't putting out 450 pieces of content a week anyways, right? And so, like, if you're putting out 20, just put all 20 up and just run them. And you'll you'll be amazed at how much better they're performing. And I think I mean this sounds obvious now, but like it's 100% aligned with the platform objectives. Like a perfect platform would have no ads. Right. And so if you can make all of your ads look like content, the platform loves you.

1:06:48Right. That's that's nirvana for them is if the world can just have no ads on on meta or Instagram or Tik Tok or whatever because like as long as the there's purchase intent which we know that content creates purchase intent that's why everyone's here. So we know that and we just didn't combine the two. So this has been this is 100% the direction that that we've already gone in and you guys if you just start doing it immediately you'll be ahead by a year. So and if you're in Latin America you'll be ahead by five years.

1:07:13>> So you just take your best reels for example and you just write a banner with a CTA. Yes. >> For them to download. >> Click the thing to get the thing. >> You know what's interesting? We tried the reverse of that. We took our best ads and posted them as content and it didn't work. >> Oh. [laughter] >> Well, we're like, oh, like, all right, move [laughter] on. We >> static image. >> We haven't made a piece of content since then. Um,

1:07:39>> well, I think part of that might be bottom middle of funnel stuff. Like the one thing that ads give you, right, that organic won't is that it'll give you reach, right? You pay for the reach. Like that's the trade. Like they wouldn't normally boost this because it's not good enough content to get displayed because it's more right hookie, right? And so you have to pay the platform to do it. They if it's if it's good enough, it's valuable enough on its own, they'll distribute it for free. Now, if you put money behind it, they'll super distribute it for free.

1:08:04>> But what we did find is our best ads were made by short form creators. So like there is a move there. it works taking what works organically and running it as an ad. Not so much the other way, but yeah, but I think >> I uh we did 560k in rev last year, >> but the issue is we lost about 90% of our leads. Um 70% came from lead generation companies. The other 20% came from doortodoor. Other 10% was referral-based.

1:08:35>> What do you sell? >> Google PPC. We do solar and battery storage systems to anybody that basically makes over 150k in income. >> Got it. Yeah. Yeah. Yeah. I saw your comment in the group. I think I responded. Um >> yes, you did. >> Okay, good. What' I say? [laughter] Okay, so >> something that helped a little bit. >> Oh, good. That's helpful. I'm glad to hear that. Okay, so 70% of the uh 70% of your leads are coming from leads you buy, right? So you got brokers and then and then you've got door todoor for 20.

1:09:07>> Yes. But we we were funneling through so many sales reps over the last 24 months. We got to like 15. >> Yeah. >> So we just dropped that and we tried to start doing the Google PPC because >> the lead generation companies we were using went out of business. >> Oh word. Oh [ __ ] Well, dude, were the leads good? Was it fine? >> Uh from the lead company? Yes. >> Okay. But we got some insight from a company that we're actively competing with that's a lot bigger than us or like a behemoth.

1:09:37>> Yeah. >> And they told us that Google PVC would work and kind of like the intermingling content and stuff together. But I don't know if our offer is right. We've been running ads for 10 days. We spent like 718 bucks. No leads, 2,000 impressions, 115 clicks. >> Well, yeah. Something's wrong. >> I don't know where to go. >> Yeah. So, uh, let me before I jump into that, the business that went out of business that was giving you leads. What happened to the team?

1:10:08>> Um, I don't know. They were all virtual, so I I think they had nearshore people, but I don't I don't know where to find those guys. >> I mean, you had a rep there, right? I'm sure you got a couple people's phone numbers because if it was small enough to go out of business, right? >> I did. I think that the guys started another lead generation company, but their uptick in lead volume has been very slowed. >> Okay. Well, I'll tell you, if I were in your shoes, I would reach out and try and get a hold of everyone in that company and try and find the person who was actually running the stuff for your account and offer him a job today.

1:10:42>> Okay. And then >> cuz he obviously was getting you leads that was actually working. So, I'm like, let's go get that guy one. >> Yeah. The issue is that we saw is that they're all pushing the free solar narrative and solar is not free. So it brings in a ton of unqualified people. >> You mean because the R&D credits expired? >> I mean I guess but this it just brings in people that are just BSers.

1:11:07>> Me because we we so so solar is super custom >> and it has been but the narrative has been get in home. We can't give you a price till we get it home. So our thought is we design free packages, run Google PPC to those packages >> and just try to get people that way. >> Well, >> but I don't know. >> I would say your current way isn't working that well, right?

1:11:33>> No, I mean we started it ago. >> So whenever I'm going to get into like if there's a behemoth in your space, I replicate before I iterate. So, I would copy the existing thing before I get cute because like new always sucks. >> Yeah. >> No, seriously, like think about think about the the apps in the app store. They've been the same for like 20 years because like new sucks always. So, it's like we don't earn the right to do new things until we are until we replicate what already works. Also, I think

1:12:07>> the behemoth that we're dealing with is >> the behemoth is called Good Faith Energy, but they are $30 million company and they pride themselves on number one solar company in Texas. >> Okay. >> Tesla Power Wall. That's really it. They really cling to Tesla heavily. >> Okay. So, >> but where do I go? Just >> Well, that doesn't matter and run with it.

1:12:31>> Yeah. I mean, you sell batteries, right? You saw the same deliverable, correct? >> Yeah, we're we're certified with all the same people. >> Is the product better? >> No, it comes from the same place. >> Okay. So, it's the same. >> Yes. >> Okay. So, if you have the same thing, how do you beat somebody? >> More money. >> No, no, no. It's a real question. If you have the same If you have every dude, if you've learned anything from my content, every player on the field always has an advantage. So, what are your advantages?

1:13:02We can install anyone with under 60 days. >> Speed. So you're faster than them. >> Mhm. >> Okay. So you got speed number one. What about ease? Can you do anything for them that's a little bit more white club than they do? >> I would say communication. That's been a big thing in store. >> Yeah. Can I give you a hint? >> Yes. >> You can have my cell phone. I'm the founder. These guys are these big behemoths. They don't care. You're just a number.

1:13:33So like you should always be able to beat these guys because you're not actually competing against the behemoth. You're competing against account rep number seven. >> Yeah, that's very true. >> Right. So you'll beat them on speed. You'll beat them on service. What else? >> I mean price, but >> I don't want I don't want I want I don't want you to win on price, man. >> Just do it on speed and do it on service. And I would replicate the offer that we already know works.

1:14:03Okay. I mean, I think we have a good base. We got 65 reviews on Google. Good. >> I've got 15K followers on Instagram, 200 on Tik Tok. So, I figured I could do something with it. >> Yeah. I do think that long term it makes more sense for you to use the Instagram to go attract doortodoor guys. Personally, >> I think it's higher leverage. One sales guy's going to make you a million bucks a year. One uh you know, one uh one lead's not going to be worth very much, right? From a house household perspective.

1:14:31No, I mean revenue you're looking between like 40 to 70, but >> say it again. >> Gross profit before um average ticket is like 40 to 70k, but that's before paying for everything. >> Yeah. Yeah. >> Net sales rep like 10. >> Yeah. Per sale, right? So it's like I'd rather go get a node that generates sales, which is salesperson who consistently can bring me give me people. Now, you said you shut your door to door down, which I'm I'm not even going to touch for now. But as I see this, here are my steps. Step number one is we got to get the to the greatest degree possible job offer, the people who used to work your account that were getting you leads that were working.

1:15:07Thing number one, and just like just do whatever you can to go get in touch with those people because whenever I have something that works, I never want to let it go. Right? Once you have a flow, never let it go. Oh, that rhymed. There you go. There you go. Little Sante. Little little rhyming action. Okay. So job offer that guy number one. Number two is we got to replicate the existing offer from a lead genen perspective. Now when we win in the paint, we're going to win on the things that we have, which is going to be speed and service.

1:15:33>> Now what I would do is do you have a manager who comes by and does like the the tour walkound once the person um uh gets the stuff installed, the battery installed? >> Oh, yeah. Like a like a post sale survey type thing. >> Yeah. Yeah. So, what I would do when that person >> Well, actually, what I want you to do is actually have your manager or like the the crew runner, whatever, have that guy >> director.

1:15:58>> Yeah, exactly. Have that guy swing by and say, hey, how is the service? They're going to, you know, how is the how are the guys? They're going to say great or whatever. And then you're going to say, hey, you know, uh, ownership gives the guys a little spiff if you leave a review. I know it would mean the world to them. Uh, and so people are more likely to give a review because the people were there and they know that it's going to help those guys out. It's like, hey, you know, John and Dan, you know, they got families. It helps them out. If if you think they did a good job. If you leave them a review and put their name in it, it would mean a lot. The owner spiffs them a little extra.

1:16:31>> Okay. And then what if >> and just have that guy give a thank you crew thank you gift from the crew before asking for it. >> So, hey, the crew got together, said you guys were an awesome homeowner. Here's the $50 thing. you know, just thanks for being, you know, we get a lot of crazy people, so you were awesome. Thank you. >> Yeah, that'd be great. That's a good point. >> Okay, >> my last question would be to your first point where you said hire the person. If I can't hire them and they've they started another company, if their uptick is slower, should I just try to beat everybody out to buy those leads?

1:17:03>> Yeah. Make a commitment. Say, "Listen, you're starting your business. I'm a small business owner, too. We're in this together. If I succeed, you succeed. The more good leads I get, the more I can buy from you. >> Okay. >> You're too small for these guys. They're not taking you seriously, but you're just big enough for me. >> Yeah. No, because >> not what she said. Okay, keep going. Sorry. >> No, I was just saying the behemoth is getting all their traffic funneled to their >> Yeah.

1:17:28>> contact page on their website based on their thousand reviews that they get. >> Yeah. So, we got to get your reviews up. But you always have the best position, which is that like listen, you're at at the behemoth. You're going to be, you know, house number 278. With me, you got all my attention. I'm here. Something breaks, call me. Like, every single one of these reviews makes a huge difference in my life and my family's life. I'm make sure I'm going to take care of you. >> Okay. So, actionable steps is

1:17:53>> hire that person or go in with them. >> Get all their volume. Step two is >> replicate the offer. >> One more time. >> Replicate the offer. >> Replicate the offer. Number three is win on speed and service >> director go to the site post install. >> Yes. And win on speed and service. That's your angle. >> So you don't compete on price. Cool. >> Dude, you are awesome. >> You're awesome, dude. I appreciate you. >> Thank you so much for everything you put out, man. It's great.

1:18:18>> You bet, dude. Let me know how it goes. I'll see you in the group. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling road map that I've used to go from 0 to 1, 0 to 10, and 0 to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're a business owner, appreciate you. And uh enjoy.