$135 to Acquire a Customer Worth $3,000

0:00All right, Eric. Nice nose strip. >> Thank you, Alex. Uh hi Alex, my name is Eric Roberts. I sell sustainable online weight loss coaching to busy professionals 30 to 55. Uh last year, we did 3.2 million, and this year we would like to do 10 million. Um this year, but hopefully soon fight to do 10 million. Uh but what's stopping me is consistent lead flow and sign-ups to outpace structural churn.

0:29Um and if I don't solve this, I won't be able to continue to give my employees raises and great lives, which I take very seriously. And my parents retired this year, so I'd love to help them financially in retirement and just give them a really cool retirement life, so. >> Yeah, I've got I've got good news and bad news. The uh the bad news is you're never going to solve churn with weight loss.

0:56It's It's the nature of the beast. The good news is you don't need to focus on it anymore. >> [laughter] >> You need to focus on everything else. So, like there are so few like massive true weight loss coaching businesses in existence because of the core problem that you have identified. Which is it's a pure distribution game. Like if you're in weight loss, it's marketing. Now, you can the people who make the most money in weight loss are the people who sell the plumbing to weight loss.

1:27Right? Like so you could sell supplements, but it's not about weight loss. It's just like it's stuff, right? Uh you could sell, you know, peptides, and you'll make more there cuz it's stickier. Like people are happy to inject or take pills and powders and potions than they are about like coaching and changing their lives, right? And so, I only need to say this because I spent too I I lost too much of my life trying to solve this. Um and so, there are just some businesses that are just not built for it. Cuz like fundamentally, even though it feels like a weight loss is kind of its own thing, it's just an education business.

1:56You're teaching someone. Like it's all it is. It just has There's just so many people want to lose weight that it's an industry, but it's fundamentally it's just an education business. Um and so all of your focus should be on front end, which is about distribution and CAC reduction. Um under the assumption that what do you What's your price point for your thing? >> Um so we have a front end 8-week challenge that's between 500 600 a month, and then 60 to 70 people then percent of people take up on a 6-month transformation package after that. So um so yeah, it's the same price as well.

2:30And then if for the 30% of people who don't take up the 6-month one-on-one transformation, we have a down sell continuity and so on and so forth. >> So are you selling one to many on the front end, or you selling phone on the front end? You're selling Yeah. >> For the one-to-one, uh it's phone calls, and I do all the sales calls. >> Interesting. Okay, so then on the front end for the 500 for the the 8-week thing is like 5 600 bucks, right? You're not taking sales calls for that. >> yeah.

2:56>> Yeah, are you taking sales calls for that, too? >> Yes, sir. >> Jeez. It's a lot of sales calls. It's a lot of sales calls. >> Well, so that's it's not So I average about 15 sales calls a week, and so I think that's where I'm like I need to get obviously get more of those. >> Yeah. Well, I mean it's it's it's pretty compelling that you're doing the numbers you are with only 15 sales calls a week, and you're still running the sales.

3:21Like, that's actually very impressive. Um Yeah, so LTV is what? So if you have $1,500 on the front end, call it, right, is what you're making per customer, and then half of those are buying a what price point on the back? >> Uh same price point, just a 6-month. So somewhere between like if they pay in full, they get a Yeah, so three to four grand, somewhere like that. >> Okay, and what's attrition on that? It's like cuz you said churn is a problem. So what's the issue?

3:46>> Mhm. Mhm. Um I would say after those initial 6 months, or I guess the full 8 months cuz 8 weeks plus 6 months, I think that's where it typically tends to drop off. But then it's just like, we keep people for 8-ish months, but then it almost seems like every week I sign 10 to 15 people up, but then 13 people cancel. So, it's just like, I need to find >> leave on the end. Yeah, they leave on the back side. >> [clears throat] >> So, I'll give you a a simple tactic that we can do just to give you a little bump. Um but then the majority of your focus should be like basically do this first and then and then focus on the front. Um which is when are you selling the renewal on the back?

4:23>> 4 weeks in. >> Okay. I mean, yeah. I mean, the like you want to have multiple hits at the piñata, right? You don't want to have to smack it once, so 4 weeks is good and and it's um it's 6 months, right? >> Mhm. >> Yeah, so I have um you're already you're doing a back-end ascension, right? And your your your your front end your front end upsell rates are fine, so I'm I'm not I'm not going to touch that part. But the back end part on the 6-month thing, um week four works, I would also throw in a any milestone that happens, and then halfway, and then last chance.

4:57And so, last chance should be the month before. Good solution. Um those would be the four times. And do you have coaches right now? >> Yes, sir. I have 10 coaches. >> I would have I would have my meeting with them, like your sales meeting with them at the halfway point. And then it's positioned so that you're like, "Hey, this is just my way for doing quality assurance, making sure that you know, like you're having a good experience. Tell me what's going on." And the close that we use there is basically all roads lead to Rome, which is that like um if things are going great, let's keep the party going. If things are not going great, you need more help, so let's get let's keep the party going. Like either way, like you have you have a reason to buy. Um and then yeah, last chance is is last chance. So, we want to do that before they end the thing, because once they're once they're done, you know, if completed their 6 months, it's a new buying cycle. And so, we'd rather catch them right before any of that stuff happens. So, we won't have a multiple licks of the of the of the ice cream cone.

5:50Uh beyond fixing that, right? Um and that's just probably just going to get you a lift. The big thing after that is probably going to be like and if you want, you can improve the offer um on the back. So, it's like listen and you can justifiably say this, which is just that um it cost us a lot of time to get you onboarded, way less to maintain you because we had to do all this work together. And so, basically it's double it's double your money on the back.

6:16And so, you can sell you can sell a year on the back for the same price as you sell the 6 months. So, it's like buy six, get six um as just a more compelling offer on the back. I would just I'd back pocket it because again, the cost of you you know this at by the time my month six or seven like they're kind of on autopilot. And so, your gross margin should be fine. Okay, that's what I would do on the back end. Um the only like you are you are in a distribution game, which is either going to be from brand or or media arbitrage in terms of your ability to buy buy buy media.

6:48Um a lot of the big brands like will typically have like you probably don't want to get into the peptide stuff, but that is crushing right now. Just saying. Like it is >> Well, it's funny. I actually partnered with somebody who does like blood work and GLP-1 and peptide and stuff, so I'm considering it, but >> Yeah, I would look at it because I think like the LTV on this product is significantly higher. It also allows you to have kind of pseudo medical positioning, which allows you to have more price uh you know, flexibility.

7:18Um Basically, I'd probably do that all that back end stuff first and then I would go gas the front end. Because with the enhanced LTV, enhanced gross margin um and hopefully some stickiness on the on the kind of like medical stuff that should give you more cash to be more aggressive cuz like if we can if we can add 50% to LTV or lifetime gross profit, if we just did that, that'd be pretty material. Uh because that alone would allow you to just just spend that increase on more customers.

7:47Are you running ads? >> Um so I literally just started running ads like 2 months ago. Everything's been organic beyond that. >> Yeah. Uh once you get into the ad side, like that's going to take you from three to 10. Pretty straightforward if you've done this all on organic up to this point. >> Mhm. And then with the ads, I have been I did all the math this morning, roughly like a 135 CAC. And so like are you at that point was that >> It's great, dude.

8:13>> Okay. Uh so I should just then just spend more on ads. >> Yeah, that's I mean that's a stupid CAC, dude. >> Okay. >> It's a tiny CAC, bro. Tiny. The tiniest of CACs. >> I've I've been told that in many ways. >> [laughter] >> Okay. Sweet. Cool. >> No, dude. >> Super helpful. >> Like I would do these things to the business anyways regardless. But yeah, gas this out of it. >> Okay. Cool. Thank you so much, man.

8:38Appreciate that. And congratulations to you and Leila on your son. >> Thank you. Appreciate it. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I just spilled 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 zero to one, zero to 10, and zero 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, I appreciate you and enjoy.