How to Fill Your Calendar With Qualified Leads | 1 Hour of Alex Hormozi on Getting Customers

0:00My name's Matt. I sell accounting services to real estate entrepreneurs. So, property managers, developers. We're doing 250K this year. We're only 11 months in. >> Oh, congrats. >> Thank you. I would like to be at, you know, 100K per month. >> Cool. >> Right. >> Um, I think what's stopping me is not enough leads. I've been doing like cold DMs, cold email, >> and people here told me to do more of those things, but I'm kind of tapped out. Like, it's becoming a mess.

0:28>> You personally? No, like software and I have a VA that's helping me. >> Okay. >> So, I'm not sure what to do to get more leads. >> Yeah. So, uh so you sell to real estate professionals and when you say real estate you Okay. Um DMs via social media. >> Yeah. LinkedIn, Instagram. LinkedIn is really what's driving it. Okay. I'd say I also do podcasts. Like I guest on podcasts. It's been four. that's gotten me some clients as well. It's really been like a spread across all those things and

1:03>> Yeah. So, um, >> do you have somebody else who's doing the actual services? >> Well, yeah, like an offshore team that takes care of 95% of the heavy lifting. >> So, you're just in charge of acquisition primarily, like you need to market. >> I still do a lot of fulfillment like I review the files and everything, but like all the heavy lifting, the bookkeeping and everything that's pretty much taken. percentage of your time is going towards front end versus back end.

1:28>> Too much on the back end for sure. That's what I realized. I need to focus on the constraint. I do more front end. That was like my main takeaway from this. But >> where where on the front end? I'm not sure. >> Yeah. So, um Okay. So, one, LinkedIn should be able to allow you to scale more in terms of your uh outbound efforts. You can go through sales navigator and then basically create >> only do 150 connection messages though. >> I think you can do more. I feel like conf like there's a way.

1:56>> Yeah, I could have get another account and then burn like big companies use LinkedIn and they're not like capping at your sales velocity. >> Do they do cold DMs or do they do ads? >> No, I know they're not. I'm talking from a DM's perspective. >> Yeah. >> Um ads obviously you can scale like pretty straightforward. >> Yeah, exactly. >> Um >> so okay, there is a solution. I am just not the one who's like DMing every day and so I don't know the the the click here answer to that.

2:24>> Um but there is a solution. That being said in order I would still go back to front on this which is that like you have to get more of your time back because right now I can feel this is me just you know not overstepping. Um I feel the stress you know what I mean of what's going on. Um and the good news is this man like it's been 11 months. You have a business doing 250 grand a year. It's [ __ ] awesome. That's really cool. So congrats. Um, but in terms of the uh way to get customers, if LinkedIn is working really well for you, I I'm very confident that there's a way to do more. Um, but if for some reason the gods of LinkedIn have just banned you from doing this, um, then running LinkedIn ads might just be the next best thing because if all the people are already there, you already know where the targeting is, and you already know what the offer is because you can just use the basically the the same structure that you use in the DMs, you just do it at scale, um, via LinkedIn, then that might just be the kind of the next best bet. You may be able to I whoever is really good at LinkedIn ads or um, you may be able to do uh, ads that go to message. Is that true? Can you do that?

3:27>> You can use trip and actually you can the limit of messages you can send out. >> There's a way >> and you have a will >> and you can also run ads actually. So >> okay >> if you want we can talk. [laughter] >> Appreciate it. Thank you very No, but I I say to say like the So, this is a better meta thing here is that um [clears throat] you have so little time and attention. Like this was a 60-second figure it out. You know what I mean?

3:56Like and I'll bet you if you had all your time back, you would have figured this out in one day that you could have done more more DMs, but it's like you're barely getting those done and then it's like it's not coming in fast enough and then you've got fires on the back end. Um but you're not doing anything wrong. It's just this is the season. And so whenever you start a business, you always incur debt. And something that like it took me a long time to understand this. Every business incurs debt. It's just which debt you want to incur. And so you will either incur talent debt like you don't have any good people, right? You'll incur technological debt. So you have like no IT systems in place. Uh you'll incur financial debt if you wanted to take money on. And sometimes if you take money on then it allows you to get the IT infrastructure in place, get talent that you otherwise couldn't afford.

4:38Yeah. >> But then you have to pay the financial debt back. So, it's really just which debt do I want to incur and which one do I is easier for me to pay back. And so, right now, you've chosen, I'm not saying it's wrong, to take on technical debt and talent debt as the primary two types of debt. And so, you're you're paying it right now in how you're working. >> Mhm. >> Does that make sense? >> Yeah. And so the stress that you're feeling is normal and it will, this may sound terrible, uh, but it will go away at like never. Um, [laughter] and uh, it'll just change. [laughter] You'll just have bigger problems. Uh, but yeah, so uh, but I I I just want you like you're not doing anything wrong. I think there are ways to scale the outbound. In order to do that, you still need to get the backend fixed, which is what we do is we look at a time calendar. We map out all the mints of the day. We try and block those into what are the what are the activities that we're doing that have the lowest leverage. Give those to somebody else.

5:33And then you need to spend it as quickly as possible. Um you need to get to like 6 hours a day of promotion. >> Okay. >> And you basically need to keep doing that until you're probably at about between 1 and 3 million a year. And then you'll have the additional cash flow to be able to bring somebody else in who's high level so we can take some of this load off of you. I'm guessing you don't have an operator. >> No. And you >> right. >> Yeah. >> But not right now. >> So there this is kind of like there's no right way up the mountain,

6:00>> right? >> Um if you this is this will apply to a lot of you. >> There are like you can see this with math. So it's not like a like like theory here. Like let's say you're doing a million dollars topline and you have 25% margins. Good business, $250,000 in profit. Okay. Well, if I want to bring in somebody who's really good to help me out, I have two options. I can either do that person's job and then work 18 hours a day and then still have money so I can feed myself or I bring that person in have no profit because the cost of somebody who's like that is 180 200 whatever maybe some upside and then all of a sudden it's like my profit's gone.

6:36And so that's why that period is so terrible because either you're working yourself to death or your business feels like it's on thin ice because if you hiccup you lose money >> and so that's why we call it the swamp. >> Exactly. Yeah. >> So, yeah, you just like the good news is that every entrepreneur has been there before you and you will make it. >> Thanks. Appreciate it. >> Hi. Um, I'm Jacqueline. I know we talked about

7:04>> dentist. Yes. 3 million, 5% profit margins. You have five different ones. Three are part-time. >> Perfect. Wow. Great memory. [laughter] >> Yeah. You're in Dallas. His 30-year-old business inherited from your father. >> Yes. >> Yep. >> And my social security number. No, just kidding. I [laughter] can pull it up. >> Um, so I know we talked Yes. last night, which you obviously remember, and um, a couple other people from your team, we talked about this issue. Um, that my number one constraint probably isn't our cancellation rate, but it is something that I'm like really perplexed about and want to at least go back with a little bit of something to share with my team about.

7:42>> Sure. >> Um, so our show rate or our cancellation rate is a little over 30%. And um this past year we've lost like a million dollars because people made appointments, confirmed them, and they didn't show up. >> Um so if you have any insight on what we could do to start improving that, I would be really help uh grateful. >> Yes. I don't think it's the constraint of your business.

8:07One moment, please. I'm pulling up. My uh my little my little duad here. Okay. So, uh, number one is you're going to want to make sure that the obviously like that that time is the right time for them. And we ask questions like, is there anything that will possibly get in the way of you showing up for your meeting? And so, we call this an integrity tie down. And so, after you get a time slot, you want to ask that right afterwards because then it like gets like shakes them out of their like mind for whatever reason. It works. So, I could come up with some narrative for it, but it works. Um, number two is, uh, I think I mentioned this yesterday, but I think it might be worth considering, um, pulling up appointments like to basically can we bring them up sooner so that we have increased shop rates.

8:59>> Um, the next one is uh, let's see here. You want to make sure that you have automated reminders, which you probably do, >> but then you want to have manual reminders on top of that. So if you have I would have an office iPhone um and you want to send manual text at three times. So you want to send the manual text at 24 hours. Uh so basically think night before. Uh second text is going to be morning of and then the third text is going to be 60 to 90 minutes prior basically when they have to like get your [ __ ] together, get in the car and and

9:30>> three within 24 hours. >> And those are manual. So you want those to be blue iPhone messages if possible. >> Okay. Now, uh, ideally we like to have some sort of, um, selection that they pick that we've like some cost we have incurred. So, this works exceptionally well for brick and mortar, which is why I'm sharing it with you. Um, and so in the gym space, obviously, like we would say, "Hey, uh, Sharon, I've got uh this shirt. Uh, tell me what size you're at and I'll put it pull it aside for you."

10:02And so when you come here, I'll give it to you. or it's like, do you want red or do you want blue? Like just do some sort of AB uh ask for them. And so it could be as simple as like you're going to you're going to pull I mean because it's a dentist office, right? And so you're like, "Okay, what can I give them?" Well, I always get free [ __ ] when I go to the dentist office. And so just like have them pick the free stuff that you put in their goodie bag and they and just and then I would send them a picture with their name on it

10:28>> so that they're like, "Oh man, they incurred this cost just for me. I have to show up now. [laughter] Right. Um, so that's another one. Um, the Okay, we got that. Um, because you're having the issue cuz someone books and like 6 months later is their cleaning or whatever, right? That's the the problem here.

10:52>> Um, yeah. Well, we call and confirm their appointment a week in advance and then we call and remind them again three days in advance and then we call them and text them again a day before and they'll say, "Yeah, I'm going to be there." And then 2:00 comes and they don't show up. >> I think they're you're you're reminding too far out. >> Okay. >> Like if if if I schedule an appointment on Saturday, Monday morning is a different universe for me. >> Yeah. >> No, I'm just being like super real. And so I think I think a lot of people are that way. And so all of the manual reminders are like if you want to like I would use the automated ones for the far out like hey you're seven days away. Hey you're three days away.

11:28>> Okay. >> But I would have the ones that you're putting the real effort in 24 morning and right before. >> Okay. >> And then have the incentive have the personalization. >> Alex Heroszi I love you. [laughter] >> I love you too man. >> Uh so I'm I'm Abram. I uh I have an easy natural weight loss program for women online.

11:49>> Uh we do $4.1 million a year right now >> and we'd like to be at $12 million a year. >> Okay. >> Uh >> what is stopping me is consistently filling the sales calendars with qualified leads. And if I don't solve this problem, then you know my team can't support their families and not hitting my goals bothers me to no end.

12:12Um, so how can I get more qualified leads on my sales reps calendars consistently? >> Yeah. So they can feed their kids and not be homeless. What are we doing here? >> Right. >> All right. So, uh, primary way of getting customers right now. >> Uh, it's uh, basically 50/50 between meta ads and organic. >> Okay. And is it IG is your your organic? >> Uh, mostly uh, it's Facebook and Instagram or the organic.

12:40>> Got it. So it's meta. All right. So, meta organic and then meta ads for >> uh correct. >> Yeah. On paid. Okay. Got it. >> Um what's uh what's price point and what's ke? >> My price point is $10,000 for a year. >> Okay. >> Or $5,000 for a downell for a year. >> Got it. >> I'll pull up our cost to acquire a customer right now.

13:04>> It is $1,193. >> Okay. cost to acquire a customer. >> And is that paid or blended? >> Blended. I don't I don't know how to separate them anymore ever since I've been doing paid and organic. >> It's like it's really hard because like they'll they'll go through one path and then they end up >> out the other end, you know. >> I got you. So, 1100 is blended.

13:30>> 1100 is blended. Correct. >> Okay. That's not bad. Okay. Um All right. And then you said five and 10k. What's average ticket? The average ticket is is 5,087. >> Oh, so most people go for the five. So you anchor at 10 and then most people drop down to the five. >> Correct. Yeah. >> Okay. Got it. All right. 57. Okay. Got it. So you need to scale your your your demand gen side. All right. So dude, weight loss is tough, man. Um h [sighs] it's tough, man. The reason it's tough is there's no revenue retention in the business, right? Like after you sell this thing, I'm guessing they don't buy something else, do they?

14:17>> Uh yeah, we sell them into our back end, the community for it, they typically stay on for two to three more years. >> Okay. What's the price point of that? >> Uh that one is like a fourth the price. We we basically we took the money models um approach where we >> Yeah, exactly. So, uh, after the first one, we sell them for basically half the price. So, like 2500 upfront, and then they do a monthly recurring, and then they get to keep that monthly recurring for as long as they stay in the program.

14:42>> And what's the price point of the monthly recurring? >> Uh, it's anywhere from $50 to $150 a month. >> Got it. >> Yeah. Yeah. And so, that's where the churn is super low because they pay. So, what percentage of people go into the 2500? >> Uh, 70% go into the 2500. Yeah. >> Astonishing, dude. >> Yeah. And they're they're actually thanking us on the sales calls now because they're like, "Oh my gosh, I cannot believe you're letting me do it." Because we increased the price of our program by $1,000 every six months.

15:10We're very public with it. Yeah. >> So, everyone that's in the program already, they're like, you know, we have people that join for $3,000 before and now they're like, I get to pay, you know, >> Yeah. 100 bucks a month. >> $1,500 plus, you know, $100 a month. And they're like, oh my gosh, this is the best thing ever. >> Dude, I love it. I almost wrote a whole chapter on it. I love it. Uh, [laughter] okay, cool. So, we have to increase demand. I mean, if that if these numbers are true, which I'm assuming they are, right? Um, if you had a three month a three-year stick on a hundred bucks a month, uh, you've got 10k on the back, right? Plus the 2500, you got 125 plus the 57, right? So, you're you're at almost, you know, 18,000 in LTV, right?

15:50And a lot of that's margin. >> Yep. Yeah. A a huge part of his margin. Yeah. >> What's margin right now on four >> on Oh, like what do what do we take home? >> Yeah. What's your net? >> Uh my net for a crap. I'd have to pull up the other ones, but um it anywhere about 120,000 a month I take home for my what I take home.

16:16>> Oh, a month. Okay, got I was like, what the hell? Okay, got it. So, you're doing >> uh 1.4 on four. >> Yeah. So that's like the net net like if we're just talking about the uh net operating costs or things like that or you just mean like net that I take home as counter. >> So you got so yeah so you're at you're at like 30ish% net margins somewhere in there. Yeah. >> Okay. Got it. [sighs] >> Okay.

16:40So what happens when you scale your paid >> though? Ever since the drama hit, it's been way easier to have profitable ads. Like it's so crazy >> because as soon as you put something up, you spend like $30 and we get a 5k paid in full like the next day. >> Yeah. >> And then >> a week later it is just hammering money like and or or the lead quality just goes to [ __ ] like right away >> and we have to shut it off. So

17:06>> um I'm basically just cranking through a ton of >> like things for to feed the Andromeda engine. >> Yeah. And that works to a point, but I can never seem to scale it up to wherever I want to get. I've never found a I've not found a true winner in like I feel like a year now. They've all just been really short cycles. >> It's because the game has changed. >> And so what you need to build So this will be really this will be really good for a lot of people, not just you.

17:33>> So you obviously have like when you have weight loss in the business like yours, it's all demand, right? And so >> um rather than me say, "Hey, let's make more better content." I think that that one seems obvious. Um, I think what you need to build is kind of what I was talking about from the tax side, but you need to build this you need to build a self-licking ice cream cone within the business that can basically make you an affiliate army. So, for example, like we put out gosh, I would say collectively probably 500 pieces of creative a day.

18:02And so you just aren't putting nearly enough creative out. Which means like if that is the if that is the true limitation of the business, which it is right now, like right now the thing [clears throat] that's limiting your business is your creative. You need more creative. >> And so that means we need to have a process or a system that creates creative. And so my my curiosity would be, is there a way that we can create a cycle for your customers to make reels and shorts about your stuff? and basically keep their instead of paying $100 a month, it's like you can pay $100 a month or you can make me two pieces of content a week or five pieces of content a week.

18:43>> What does that content look like >> them? You would look at all the strongest hooks in weight loss, tell them what those hooks are, let them use those hooks, and also make their own because that's how you discover new ones. So what you need to do, so are you familiar with Tik Tok shop? >> Yeah. >> Okay. You want to create your own Tik Tok shop affiliate system fundamentally for people to create creative to promote your thing. Like this is what will take you from four to not 12. Like this will take you to 50.

19:19Like this is the highest point of leverage in the business for you. And so answering the question like how can I get a 100red people to make me five pieces of content a week. So you get 500 pieces of creative and with Andromeda the algorithm will read number one what they're saying number two what they look like in the room and so it will match >> because [clears throat] all Andromeda did which is why the ROI is so high is they just took the the idea of national ad campaigns is like gone. It's all sub-segments because they want the they want the process rather they want the experience for a consumer to be feel like the algorithm is so catered to them which means that advertisers can no longer just be like hey buy my [ __ ] right it's like you have to be like oh you're just like me who look like you talk like me and you're making those recommendation now more likely so marketers love it and hate it because it's your experience is 100% what Andromeda does you get better rorowaz and it burns out in two And so I just happened to come like the biggest gift I ever got was I started as a local business owner. And so I had the same 100,000 people I could advertise to. So I had to make fuckloads of creative before it was cool. So that's why I I I flexed this muscle a lot. And so it but your needs at your spend is beyond like you're you're going to need I make your target 500 pieces a week.

20:45500 piece a week from the my clients just talking about whatever these hooks are. So if andromeda the static and um uh static and video. >> Yeah, that was going to be my question because the uh when I have uh Andromeda, I have that's exactly what my split is right now. It's like 50/50 uh text and images and video, but uh

21:08>> the messaging has to be 100% unique between every single creative for it to crank like that. And I I mean like literally nothing is the same. Like the like the entire thing is com all of them are like 100% different. That's why they crank so much. But so if I have my clients doing this and they're putting out this five piece of content, am I telling them, hey, these are all the best hooks. Everyone record these best five hooks. >> They can make the same brand messaging. >> They'll be fine. Yeah. They could like they could for like if you have different people saying the same thing that's totally fine.

21:37>> Okay, that would still that would still be okay. What about do I need to worry about like brand messaging inside of like what they're saying? >> Prove it. I mean you can watch them. >> Oh no. I mean like uh like I want to sell easy weight loss for women. Do I have to make sure they say that specific thing? You know, like or do I have to say like lowered my cortisol? >> Dude, if you can get that past the ad scraper, if you get easy weight loss for women working, >> amazing. A lot of I mean, dude, you're skating on thin ice on that one.

22:04>> Yeah. >> Easy, fast weight loss. [laughter] >> Yeah. Yeah. >> The only thing else you need is free and you be and you hit you'll hit the trifecta, dude. >> Yeah. Free guaranteed. >> Yeah. Fast, easy, free weight loss. >> Uh, no, that's what you need to do. You need to build out the machine. Um, and do you already have um AI automation set up so that you can get 100 or 200 uh statics a week just cranking to you uh without you doing anything?

22:30Uh, no. I write out all the copy. Um, No, I mean that every day. >> No, dude. No, dude. >> Yeah, that's because I' i've tried. Yeah, because I've done the uh the AI ones I've done or I guess it's all testing cuz I I don't know. Like some of the ads I think suck ass and all a sudden I put them out and they rock. So, like I don't know what's going to be good. So, if I'm putting out the different uh like text and imaging things, do you have like best practices that you guys have seen work right now where if you guys are are you doing like five different um

23:00>> image or one image and like five different copies and then you're doing advantage creative or anything specific that you guys are seeing? >> Dude, we're just cranking so much variety and then whenever we do have winners, we add it to the winner the winner sheet and then that feeds the AI. >> Gotcha. Oh my gosh, why am I not doing that? All right, I've been I took my winning emails, you know, I should Why am I not taking my winning ads? Like, all right, so it makes a lot of sense.

23:27>> Good talk. >> Awesome. All right, [laughter] >> appreciate you, man. >> I will definitely do this. Yeah, thank you so much. >> Yeah, you bet, dude. >> I sell uh outdoor lighting to homeowners. We do 880,000 revenue. About 40% is in the holiday season doing Christmas lights. Um, basic the problem is we don't have enough leads in the not holiday light time of year. Yeah. So, um, the first half until basically now. >> I fixed this business so many times. Do you want to just walk you through it?

23:54>> Yeah, for sure. >> Okay, cool. Um, [laughter] >> so basically you have you have one kind of existential uh decision that you need to make, which is are we going to be full-time lighting, which there's nothing wrong with that. Look at the Halloween store like they're open two months a year and they just murder it and that's all they do, right? M >> the alternative is that you basically have um a home team that goes from lawn care and other home services to uh you know lighting because the the lawn care guys have the equal opposite issue.

24:23They're like okay well there's grass that's growing nine months of the year and then it's holiday season and what do my guys do for three months or four months depending on whatever geographic area you're in right and so um I tell you which one I prefer. I prefer the keeping the holiday season business >> year round and I'll explain why but either option works. I just want to be really clear about that. I like thinking about it. How many months of the year are you doing the lights? Three. >> Yep. 45 days basically.

24:48>> Yeah. >> So instead of So the way I think about it is how can I take how can I equip my existing team with as many skills as possible so that the other 10 months of the year all they're doing is getting business. And so like the perfect business in the world is you sell all year and then you only have to deliver for this much. It's an amazing business. You just collect cash all day long. Collect cash, collect commitments, collect cash, collect commitments all year round. And then you boom and you basically earn the living over the next 45 or 60 days and then you go back into the sales cycle. And so that's one way of doing it. I like that because it's such a simple like you just have to think about one thing for 10 months which is marketing and sales.

25:25>> Yeah. >> And that gets pretty nasty. And the cash flow is really good. The alternative obviously is you're like, "Okay, well these guys don't have these skills." Which then begs the next question is what type of talent would I need to facilitate model A versus model B, right? If you have model B, which is maybe maybe you have lower skilled people who work for you right now, >> uh then it's like, okay, can I buy some lawnmowers? Can I buy some landscaping stuff so that I can give them something to do for the other nine months of the year?

25:49>> Yeah. So, we were doing lawn care and picked up Christmas lights to fill that gap. Well, where I live in October, you have to do both. Yeah. >> So, I got rid of the long hair. >> Okay. >> Well, just to do just Christmas >> and you made better margins and all that stuff. >> Yeah. Yeah. Yeah. So, that was awesome. So, what we're doing now is project based permanent lighting jobs with the exact same team. So, we can literally just shut it down as soon as Christmas time starts. >> Cool.

26:13>> So, I guess where I'm what you're saying would be just sell Christmas all year, >> which is like really hard to sell this time of year. Really like >> super easy to get leads in Christmas. >> Yeah. >> So, my thought was sell permanent lights. Uh-huh. >> And then also 50% of them still get Christmas lights. >> Um, but >> why not do that? >> That is what I'm doing. >> Well, great. >> Well, so the the problem is the leads problem. >> Okay. >> So, I'm running out of Christmas light customers to sell landscape lights to cuz that was the natural first, like easy to get them. Well,

26:42>> I'm running meta ads. >> Um, >> so lead gen for permanent lights. Okay. >> Yeah, exactly. Is the problem. So, >> what I'm trying to figure out is is the problem like lead magnet issues or landing pages issues is where I'm at, I think. >> Right. So, now we're now we're in the meat of it. Great. >> Uh, no, I'll bet you that the crate is probably not that good because I think it's a pretty easy thing to sell. >> Yeah, >> the permanent lighting. Like, you just show a house before and after. You show the dark >> before and after. Like, >> oh, look, lights.

27:08>> Nice thing. It's very visual. >> So, I actually think that I actually think that the ads is probably the issue. What's the lead magnet you're offering right now? >> Uh, we come to your house, do a free demo so you can see how it looks. Yeah. >> Yeah. Um, I'd probably try and enhance that offer. >> Um, the nice thing is in local markets, it's very offer driven. Mhm. >> Um and so >> I'd have to think more than three, you know, 2 seconds about it. Um because it'll be the front end of the whole business.

27:33>> Um but it would probably be some element of like some amount of lights that come for free. Uh, so like like I think something that would murder would be like can I light someone's like not their deck but like maybe their the side like from the sidewalk to the house or can I just light the driveway like some small element. So we talk about in the in the leads book um a lead mag can either be a trial of something. It can be one part of a multi-step process

28:03>> um >> uh or it can be a third thing. [sighs and gasps] But for yours, I think the Thank you. Uh one step in a multi-step process. That's why I wrote I wrote it down so I don't have to remember it. Uh um but I think uh like if I can if I wanted to because like I'll I'll prefer to start with a banger offer and then add friction. >> Uh because the thing is is like you can say I'm going to give this away, but you don't have to give it away to everybody.

28:27You can say I only give it away to houses that are over X. And you can have people put their address in and then run an API to Zillow, look at home value, and then rank order the leads based on value of home and then basically prioritize those leads ahead of time. And so you can go to those, you know, those houses first and probably sell much bigger bigger packages overall. But I think that like >> if I'm struggling to get leads, I just need them to say they want lighting. I don't really care how they say they want lighting. I just need them to say they want it and then the sales process takes care of the rest.

28:58>> Cool. Do you like that? >> I'm just trying to process. Yeah. Yeah. Like how that would go. I mean, you're 100% right. That's the problem is people once they say they want lighting, selling it is easy. >> Yeah. >> So, I just got to get them to say it and put their phone number. >> Exactly. So, give them a crazy So, give them a much better offer than I'll give you a free sales pitch. >> Yeah. Yeah. Yeah. Yeah. >> No, I'm just being real. Like, that's So, fundamentally, that's it. So, I think you saying like we'll we'll do the install for free. You just cover the cost of the lights. >> Mhm.

29:24>> For this tiny amount. See how I'm developing it now? I like it. All right. Now, you can put the markup on the lights and put zero on the labor. It doesn't matter either way. You just basically mix and match how you're uh showing the money. And that way, you'll still break even on that first thing. And you'll just know that one out of two or whatever it is who buy the first thing, buy the 10 times bigger package. >> And then that's just math. >> Cool. That's it. I like that. >> I like >> I've been in real estate investing for 23 years. Such a wide range of possibilities. How to approach niching down. Definitely a pattern here.

29:53>> Yeah. Okay. So, in the offers book, I talk about kind of like four levels of of niching down. And so, it's like if I sell time management, like what everyone's missing here is they think that they can get more customers, but what you're missing is how much you can charge, how much more you can charge per customer when you're niched. And so, level one is I sell a course on time management for 19 bucks, right? Level two is I sell a course on time management for salespeople, which is maybe a $100 thing. If I sell a course on time management for outbound salespeople, then that might be a $2,000 thing right now. If I sell an uh a system for uh time management for outbound sales reps who do gardening and uh thank you. Wow, you found him. Amazing. Um yeah, perfect. for B2B power tools then for that guy like I know what a sale is worth to that dude and I say like my system because I can very clearly map my messaging to the value for that avatar and so time management even if the fundamentals of all four of these systems are the same the difference in price is 100x between these things and so I think people miss this and the thing is you're not going to get a hundred times the volume in your time management because you're undifferiated And unless you are the guy for time management, which by the way, you start by being the guy for outbound gardening reps and then eventually say, you know what, I think I can help all outbound reps because you've developed enough of a reputation. And then over time, you're like, you know what, I think I can just help all sales guys. And then over time, you're like, you know what, I think I can just help anyone. Right? Like if you look at um gosh, I'm trying to think of somebody who doesn't have a a bad reputation. Um, most educators start with a niche and then they expand outwards. So, just start with what you know you can master and crush and then move on.

31:44Maybe one example is Sam Ovens. He started by teaching SAS companies how to get local agency clients and then expanded out and out till consulting.com and now school which is super broad. >> Right. Exactly. I mean I I mean I could use my story, but you already know my story. Like I help people lose weight locally and then I help people lose weight remotely and then I started the gym and then I had people who asked me how to run gyms and so I started running gyms and then I had enough people who were like, "Hey, how do you scale a a service business to this level nationally?" And so I answered that and then once we had a portfolio of different types of companies, people were like, "How do you grow my business?" And so it just keeps going.

32:26like you can look at the types of questions that you're getting to see how broad you can go and you don't really want to go broader until you have so much demand that the opportunity of making the expansion more than nets you your current revenue. So it's not like you don't want to make an adjacent move for a double. You want to make an adjacent move for a 10x. McKenzie, you are on our hotline. Okay. Monthly revenue is $100,000.

32:56Hello, Mackenzie. >> Hey, >> McKenzie. >> Can you hear me? >> What's up? $100,000 a month. >> Hey, man. How's it going? >> Rock and roll. Good. You got cold outreach. Got it. You're doing your custom apparel. Okay. Custom apparel. Interesting. Um, offer is apparel for colleges and college organizations. So, like fraternities and stuff.

33:23>> Yep. All right. All right. Colleges. Okay. Um and then the constraint is cold outbound works economically but too many unqualified leads. Okay. Um so does that mean that where how are you getting your leads right now? >> Just scraping. So basically we're just trying to find contacts for these organizations primarily through like Instagram and then we just reach out to all of them cold.

33:53>> Okay. Um what's the model? >> Um as far as like how do we make our money? So basically um we handle the design side for all the apparel and then we outsource the manufacturing. And so we're just kind of active the middleman and and mark that up. And so on all of our orders, we average about 35% gross margins.

34:18>> Yeah. So is that $100,000 a month um your slice or is that that's topline? Okay, got it. So you got 35ish of gross margin left over. >> Yeah. >> 100. Okay. And so what's happening when we reach out to these different organizations is basically it's very hard to segment between who we think is going to end up being a big customer with like a high lifetime value. We have some customers who are going to spend, you know, $20,000 a year with us versus others that are going to spend $1,500 a year.

34:50And it's just really hard for us to identify like what are the markers that make a customer in which group, you know? >> Yeah. So yeah, and you've and you is there a reason that I mean you focus on colleges just because they were easy to reach out to decision makers. >> Yeah. So that that was kind of that was going to be the second part. Uh basically what I found so far is like we're reaching out to the colleges. It we've got the process really dialed in.

35:20So we have like a pretty good conversion rate like it it's easy for us to acquire customers. But what I actually notice is that's what we focus our outbound on. But the AOV for the colleges is maybe like 12-500 bucks. We have other customer segments that are spending way more per order and per year. >> So let's talk about those segments. >> We just haven't really figured out the acquisition as much. >> Okay. So what are those segments?

35:43>> Um construction uh is a big one >> and also summer camps. But the thing with those I kind of run into the same issue because you know I might reach out to two construction companies. one of them they don't order like any apparel and then another one orders like you know $50,000 a year. So yeah, I'm still just trying to figure out how to know. >> I just want to reframe it a little bit for you. So if you know that like okay well construction seems like on average they're worth like 25 times more or something like that. Does that sound close to right?

36:12>> Yeah. >> Okay. So if you have some like duds and some good ones but they're worth 25 times more then I'd rather just do the duds and good ones play with in general people that are worth 25 times more. Yeah, because I I mean I'm running into the same issue either way. So, it's just basically targeting higher value customers. >> Yeah, but I mean I think like I'll say it differently like this is a feature, not a bug.

36:39Like this is just part of what what you have to do with outreach and like list segmentation and list list enrichment is like part of what makes outreach effective. >> Yeah. So do you think like basically on the last live stream, you know, I kind of went through the five Ms and I realized it is data that's holding us back from being able to scale. Okay. So, I've already started, you know, having my dev like build out different stuff to help us track this data better.

37:07>> And I'm kind of wondering like should I be focusing a ton of my time on trying to figure out like and identify the segments? Yes. You know, more specifically, like what makes this construction company spend more money and or or should I be focusing on volume? >> No. Get the data right. >> Like if you take a longer perspective on the business, right? You knowing who your customer is is going to be data that you absolutely have to have no matter what. And so why would we delay something that's going to give us so much leverage on our messaging, our offer, our channels like like picking the customer is the first and most important thing that you can do in the business and then your offer comes from the customer. Like the one regret that I have in the offers book is that I would have added in uh your first customer which is uh one I think the first chapter in lost chapters. Um, I would have added that as the first chapter of the offers book because so many people just like you have to start with the customer and then from the customer we reverse engineer the offer.

38:08>> Yeah. And that's like one of the reasons why we target uh like fraternities and sorities is because on a per unit basis like they spend more per shirt but that the you know they order 50 shirts at a time versus 5,000. >> Yeah. So all we have to look at like we just have to look at absolute profit per order and then I would just like that's that should be like north star. >> So what is so if we have you know 50 shirts with you know 50% margins versus 5,000 shirts with 20% margins we'd still rather have 5,000 shirt because you're a middleman anyways.

38:42>> Yeah. It doesn't take any more work. >> Right. So like Right. So like let's go sell the bigger people and expect that we're going to have some that are smaller. But if we're shooting for 5,000 orders, your your small ones all of a sudden are going to be 500 orders instead of 50. >> Yeah. Yeah, that makes sense. And I, you know, honestly, like even though we don't have the data yet, that's kind of after the last couple of calls, like I realized that is the direction we need to go in that. I'm trying to figure out

39:10>> h how we should make that transition because, you know, it's like you always say like more then better than different. And I feel like I I'm I could be doing more and better, but I'm choosing to do different because it's just a better model. >> Yeah. Well, you're I mean, you're reaching out to me, so I mean I I I make these rules. I can break them. Um so, uh you're in an instance where like it's you you should unless unless you had a way that it was like I'll say it differently like you could for sure double outreach and the business would probably double. It's just like I think there's just so much more meat in these other industries because like I think you'll I don't want to see you'll cap this out because like you could for sure become like like oh maybe I'll maybe I'll think about like this. These are the conditions under which I would stick with what you're currently doing, right?

39:56I would stick with what you're currently doing if you knew that those college customers would become lifetime customers. If you knew that every single one of those college organizations would just always order, you know, $1,500 a year worth of gross profit and you just knew that you were keeping 80 to 90% per year, then this business would just continue to stack. And then over time, you build this kind of like monopoly within the colleges of like the default t-shirt guy, right? That would be the condition under which I would I would continue to pursue the colleges. And maybe you could just say like, okay, well, how do we retain revenue better?

40:26How do we get these people to reorder? can we reach out to them more regularly so that they're buying four times a year instead of two, etc., etc. Like that would be that path. Um, but you're >> I would say that we're kind of in that situation. Okay. I mean, we we've been doing this for a few years now. We don't have like really any turn. Like our turn level is like extremely low. Um, and we're very proactive, like you said, trying to get people to order more. Like we're trying to bring up the order frequency, bring up the AOB,

40:52>> but at the end of the day, it's like I could I could probably just leave this running, like leave my operator just continuing that side of the business. Yeah. >> And then maybe shift my time towards focusing on these other uh you know, targets. Yeah. Building up that acquisition system. >> I hear you. I I I I'm g I would do the other thing that's bigger. >> I'll be honest. I I would do that. And that's normally not the advice that I would give because like the for sure bet like if I had to say

41:20>> how do I guarantee >> that you go from 100k a month to, you know, 250k a month, I would say, dude, just triple what you're currently doing. That would be for sure my bet because you're keeping the customers, you have pro, you know, gross profit that's there and it'll just continue to stack. That would be my like if we had to bet. But if you're like, I want to get to, you know, 20 million a year or something like that. I don't know what your What are your goals? I should have asked that earlier. What are your goals? That that's my goal. I'm trying to get to like 10 20.

41:47>> Yeah. Then I think you just need you're gonna you just want to get you want to make get paid more per and it's the same number. It's the same level. >> Yeah. >> Yeah. I mean you like you could do more but then we'd be asking the question, okay, how do we go from your current outreach level volume to like how do we truly and I mean this truly like how do we actually do 10 to 50 times the outreach? Like you could do that. That would be still probably less risk. >> It's not feasible with this target market. >> Okay. Well, then if that's that, then if we go metrics and then market, which is the next M, right? Then then I would rather go construction that's bigger whales. If that's the market that you feel better with, I don't normally say that, but I think that it's probably what makes sense.

42:26>> And here's here's the great part. If you do it and you just fall flat in your face and you find out something that like actually makes construction suck, you can always just go back to the college and then just and then say, "Okay, well, my my for sure path of of of growing this business is like I will 10x my outreach." That is your for sure path. You can always go back and do that. But if you have an opportunity where you can get literally you're talking about 50 shirt orders versus 5,000, it's 100x the leverage.

42:50>> Then I'm like, I really want to look at something like that. Yeah, that makes sense. Um, >> and I guess like I just need to treat it as like a test. Like I don't need to like shut down my business and start doing construction like >> God know, >> you know, start building out another channel. >> Yeah. I don't normally say this, but when you when I see a 100x difference and you're at the size you're at, I'd rather you I'd rather you look there.

43:21>> Yeah. Yeah, bro. That's like That's what I'm thinking. Like I've been thinking the same thing you're saying, but I'm like ah this goes against all the advice. >> No, I know. No, I mean that's why you called. That's why we're here. Cool. Feel all right. >> Yeah. All right. Sweet. Yeah, that's what I'm going to do then. >> Just don't burn down the existing business. Have your operator still run it. Make sure it's still good. The things that you want to make sure that you like what are the things you want to validate for the new market is you want to make sure as fast as possible that they reorder. As long as you have that, then you're gonna have revenue retention. You're good to go.

43:47>> Yeah, that makes sense. I mean, okay, let me ask you this. This is I I when I view um this business like the reason that we're able to penetrate the college market so well is because you know we target all of our marketing around that. Like if you go to our website that that's the avatar we're trying to serve. >> Yeah. >> I've considered basically building out maybe have like different websites for different niches. So like I just replicate everything we did for college but into construction. um and kind of ser serve a whole another avatar. I don't know if that makes sense, but like build a customer journey around them.

44:22And I just I don't know if that's maybe like a not the smartest way to scale is doing like more. >> No, I don't want you to do like many different vertical. I definitely No, no. I want you to commit to one of these things. And so we're like this is a potential 100x in terms of leverage for this type of avatar, which is the only like if you were like they're worth three times as much, I'd be like screw it, dude. Just do more of the college thing. when you said 50,000 in order versus 1500 like that is a very big difference and it's the same level of work for you. So at that point that's why I'm like I'm like it is only because of the unique characteristics of that thing. The only other thing that we'd want to make sure is that you have revenue retention there. Once you have that there's more than enough construction firms for you to get to 20 million a year. No question.

45:04>> Yeah 100%. >> Okay. >> Yeah, that makes sense. >> All right, rock and roll. >> But don't don't spread it out like focus my on one. >> Yeah. I don't want you to have like a 100 verticals. That's not the point. We like you new colleges. Like every one of these ones is going to have different nuances, different acquisition things, different sales. Like you have to learn all that stuff again. >> But like I'm I'm only kind of like signing off on this because of the crazy difference in value and the virtually no difference in operational effort. So it's like you don't have to relearn how to how to be a middleman for shirt ordering, right? It's like it's the same thing. We're just targeting a different person and we only have to figure out one thing, which is how to acquire that customer versus the other. And once we have that, the rest of the business works the same. when you make, you know, 20, 30, 40 times more. That's why I'm saying I think it makes sense.

45:47>> Yeah, that's exactly right. That is the only difference. All right, cool, man. That's perfect. That's a game plan. >> All right, rock and roll. Appreciate you, man. >> What do you think is the most suited for like cold outreach? >> It's about ticket size. >> Yeah. So, typically the the larger the ticket, the more specific the target, the more cold outreach is important. The less specific the target, the lower the LTV, the more content and paid ads are the better channels.

46:11>> Makes sense. So like is there like a figure because I've noticed the same I figure like our best customer >> I like 10 grand or more as a rule of thumb. >> Yeah, that's right on [laughter] that's right on the nose where we're at too. But I wasn't sure if you could if there's something I'm missing where you can like make these micro things work. But see, cuz we've taken on like SAS customers to sell like PLG type stuff and it just like a lot harder to make it work. >> Yeah. And they need a ton of volume. It's like you want to be hunting whales, not hunting minnows with a harpoon. It just not I mean you could, it's just not efficient.

46:41>> Got you. So if someone's like they're doing a lot of like low stuff, it's like content ads. If you're doing like mergers, acquisitions, private equity, you're trying to get all outbound. Yeah. Yeah. Okay, that makes sense. Um, and I figure organic's good to bolt on to everything to like >> Yeah. Uh, >> just to be I I heard you say before where it's like one channel, one audience >> up to a million. >> Up to a million, a million a month or a million a year. >> A year.

47:06>> A year. >> Do you think that you should always bolt on organic two just to kind of give that like lubrication sales process? >> Shifted from like I still like the focus of the of the um of the advice. Yeah. >> Um >> it's I just feel like organic is so easy to do at so I consider organic to have two two levers. So you have like MVP level of how do I have my minimum viable product of organic which satisfies a different need than using organic as my primary method of acquisition. And so if I use it as like I have to show that I'm alive and that I can provide value then the purpose of the organic is lead nurture. So I'm doing outreach as my primary method. But then if you do outreach from a channel that has literally no posts, people will be like, "This is a scam." And rightfully so. Um, if you have like if you post three times a week and you have something that's relative relevant to your avatar and whatever you sell, then they will, what most people do, most sane people, some of the customers that you have, um, is that they will click your, you know, if you do outbound, they'll click over to your profile before responding to your email and they'll be like, "What is this guy about?" or "What is this guy about?"

48:15And they'll be like, "Oh, this guy seems legit." They'll watch two or three things and they'll come in. And I'm sure if you have any kind of, you know, data tracking or any kind of surveys on the way in, they will say that. If you use it as uh as the true like I want to generate my demand almost entirely from organic, it's a different strategy. To me, it's a much different level of investment. And so at the base level, yes, one avatar, one channel, uh one, you know, one offer. Um but I think that if you do outreach, it's like it's it's so low effort just for the MVP level.

48:43for the next level. That's a different monster. But just like having enough to show that you're alive, I'm pro. >> Yeah. So like using it more so as like nurture rather than lead. >> 100%. And then the sales guys also you're going to I I love knowing this because uh you will make some content that just does hit and then does create inquiries. And then that content is the stuff you give to the sales team as the greatest hits. And then the team should have a searchable database of what are the greatest hits for this type of avatar or this type of overcome because typically people are going to either have questions around like will this work for my type of business which is where the you know case studies and avatars about specific case studies is useful or they'll um or they'll have objections that are kind of more standard sales objections that might be around your specific thing. Um and having sets of content that's both which is like does this work in this setting or does this overcome this specific myth or you know belief that I have that's not true. content around both those things, then create sales assets that the guys can then use or gals uh can use to go uh sell stuff.

49:41>> Gotcha. So, high level, if you're doing content as not your primary channel, you should still probably do it as nurture. Yeah. >> Yeah. Have a pulse. >> Cool. And should you do that like omni channel like is it fine if you're just one and ideally the channel that you do outbound for? Now, if you do outbound on on email, then it's just going to be like you'll have your website and you'll have your one social profile and that's what they're going to link to. Like whatever you link to is what they're going to click. So, I would just link to the one thing that you're active on. >> Okay.

50:06>> Yeah, just to keep it minimum. >> Cool. Yeah, that makes sense. Um, >> uh, my name is Joe Stress, uh, with Squeaky Clean and Dry. We do cleaning and restoration. Um, mainly residential at the moment, which is going to be part of my question. Um, we currently do 1.9 million revenue across two locations. Um, want to be at a $100 million exit. No timeline on that. As long as it takes to get there. Um, our current constraint, I believe, is a lead gen and ideal avatar problem. So currently a majority of our leads come from Google LSA. Um about 92% that data is not accurate. We know we need to get a new CRM. Um so far as data, but um with that being said, it comes down to if we need a second acquisition channel and who to market to. Currently LTGP to CAC is lower on the residential side than commercial. We don't have a ton of data on commercial, but CAC is the same. LTV is obviously, you know, much higher um recurring revenue with property managers and just bigger restoration jobs with mold, water, and fire.

51:02>> And they're all and those are coming through LSA as well, the commercial jobs. >> Correct. >> Are you running a different advertising campaign for those or they're just coming through? >> We can't really control who comes through that funnel because we just rank at the top if whether a homeowner or a property manager searches us or our services on Google. >> Okay. So, what stops you from doing more ads? So currently we are essentially anytime uh LSA gets close to max budget we're just increasing it which is increasing leads but not at the rate that's actually going to move the needle the way we want it.

51:31>> Okay for your local market. Now what how how many customers can you take before location caps? >> It's a great question like per week because we do so cleaning and restoration. So, I know what you're going to say. Focus. Um, we actually bought an exist, right? Chocolate and yoga, right? They go together. >> So, about a third of our business comes from cleaning. We do um between two roots, uh, three to four appointments on each route per day. Um, each day is about $1,200 per per route.

52:02>> Um, restoration, we can handle about a job or two a day. Um, each of those jobs basically caps at $3,500. >> And this is just like flood flooding type stuff. Restoration. Yeah. Baseballs, fire damage. >> Oh, fire. Okay. >> Yep. Mold remediation. >> Got it. Okay. >> Yep. >> So, that's two. Is there a third business or missing here? No, >> just two. Okay. Thank god. Okay. Um, [laughter] so, so the two locations, they both do this by model or you just have services.

52:31>> Okay. Got it. All right. And so, what's the capacity of the facilities or the locations? So I mean we see people in our market um you know the the bigger national chains they usually are around 3.5 to 5 million before they have other locations. >> What's primary channel for them? >> Uh TPAs. So we do a lot of insurance work on the water and the fire side. So they work with third party administrators through insurance claim goes through insurance company pass

52:57>> and that's on the restoration side not on the squeaky cleaning side. >> Correct. >> Okay. Um what's LTV to CAC on both of those? >> So for residential again >> no no not residential like >> on the cleaning side versus the uh restoration side. >> So again data is not super accurate from what we're able to get from the data we do have. It's 6.1 to one on the cleaning 6.8 to one on the restoration. about the same. Um, easier to I would imagine it'd be way easier to get cleaning customers than restoration customers.

53:36>> 100%. >> Okay. What percentage of the business is restoration versus cleaning? >> One/3 revenue is cleaning, 2/3 is restoration. >> Okay. Did you start both at the same time? >> Yeah. When we bought the business, it was >> Oh, it was like that. >> It was like that. >> So, you're inheriting >> correct >> step siblings. Got it. Okay. Um Okay. Do you want to run both? >> Did you buy it? So you bought it? >> We did about four years ago.

54:01>> Are you paid? Are you is the debt service done and all that stuff? >> Done. >> Okay. So you own it out, right? There's no issues there. >> Correct. >> Okay. And it's still 2/3 one third. >> Correct. >> So the another kind of caveat to that with commercial um and for that matter. >> So messy. Keep going. Yeah. Well, it just cleaning gets our foot in the door. >> Yeah. So, we can offer our cleaning services for commercial spot treatment, um, cleaning their area rugs in a larger facility, and then if something happens, we're their go-to guy.

54:29>> Just like by chance if something gets destroyed while you happen to be clean. >> We usually try like for [laughter] um so for the commercial side, usually we we try to put a contract together. Um, I see usually some property managers kick back on that. Um, but if we can, we put a contract in place that if anything happens, mold, water, fire, while we're not like in contract period, we're here to help.

54:55>> Yeah, this is so weird. Um, okay. >> It's a weird business. Um, you're like, if by any chance someone has, you know, food poisoning or here, we also do like resuscitation or whatever. It's just um, how are you getting your leads on restoration? Same way. LSA. >> Okay. And there's not really much recurring there.

55:21>> Hopefully not. >> Yeah. Right. Yeah. Um you can always mess something up on cleaning now. Um Okay. So if we think about this, so this is a $100 million leads problem, right? Which is which of the lead generation methods are you going to pick? So, you're profitable, I'm assuming, uh, and you're just trying to do more and you are maxing out your, you know, local search stuff and you just need more. Right. Exactly. Now, this is relatively common, too, that um, local search is super profitable, but like there's only so many people searching, there's only so much inbound intent and after that, you basically have to go to interruption based marketing. So, I kind of need you to choose your own adventure. And I think, tell me if I'm wrong here, it seems like you're at a point of relative stability in the business.

56:13>> Correct. Okay, so you're at a point where you kind of need to make a bet. Uh, and so let's just walk through the bet together of which of these is the lowest bet for you. All of these are the right bet for the right person. We just need to figure out the right ones for you. Okay, so bet one is that you go all in on content and have, you know, dancing men in beards, uh, cleaning squeaky squeaky clean floors and then slipping and then restoring it. Um, [laughter] oops, a mop bucket, you know, uh, flooding. So, so that's that's option one. Okay. Uh, option two is you run kind of interrupt metabased ads. Uh, because whenever you go from intent to interruption, the ocean opens up to you because no one only a very small percent of people wake up and say, you know what, I need to go get a cleaner day.

57:00Just about everyone else just keeps living their life and then gets interrupted and says, oh, maybe I will consider a cleaner because of the ad. Right? So, option two is we can run interruption based ads. Probably meta would be the first place that I would look. The third option is we can do basically a channel partner strategy. So affiliates and so of and the thing is like you have two businesses to feed which I hate sign but um because it's like okay [ __ ] that's a totally it's going to be a different game for both of them. Um if you think that the foot in the door is easier with cleaning I would agree with you. Um, I would put all my front-end focus on the cleaning most likely, and then have a cross-ell motion between cleaning and restoration, which you kind of have. But my focus from a legion perspective would be cleaning because it's so much easier to get those customers.

57:44Whereas, I think restoration will definitely have far more inbound intent. People don't wake up and say, you know what, I do need to restore my my basement today because it's flooded. Like, that's that they know. [laughter] No one just decides to because of an ad, right? And so, um, which of those three feels like more up your alley? >> So, I love the sales side. I love going out and meeting people, um, trying to acquire referral partners, whether that's plumbers, property managers that are actually going to use us. Um, which was kind of my question about switching more to a commercial ideal avatar.

58:19>> Um, and then also anytime I'm doing that, I'm always preaching restoration. I rarely even talk about cleaning. Um just because again it's you know higher margins. Yeah. Um so >> but like you're you're going in and say like let's say here we've got a bunch of properties, right? Yeah. >> And so you'd say hey >> if something happens hit me up. >> That's much harder to do than like why don't we just start cleaning and then that stuff comes later cuz I feel like you need to like draw blood. You know what I mean? Like you need to you need to get a dollar across the line,

58:49>> right? >> Um >> cuz obviously there's big door knockocking teams which you could do if you want to do residential. commercial will be a little tougher from a door knocking perspective because there's gatekeepers. Um, but I think if you are and if you have like more sales aptitude if you want to go after property managers in order to target commercial customers, I think that makes sense. >> Basically, what I what I would love to give you a line of permission on, right? You can store it if you want to. Um, is you're going to have to make some material change right now. And that might seem contrary to what I was saying about refreshing the bricks, but you've reached kind of a local maximum of you're spending as much as you possibly can on the search words that you're aware of. Um, it does feel low from a revenue perspective because if each location's at 900K and that split between restoration and cleaning, I find it hard to believe that $300,000 in a local market is the cap for cleaning search,

59:40>> right? >> That sounds unlikely. >> So, would it make more sense to focus on brand? So, when people see us, multiple touch points. So, >> who's doing your search ads? >> Uh, my partner. >> Okay. I think they're Where we at? I think there's I think you can probably bid on more keywords than you probably are right now. >> So he's he's referring we do LSA. >> Okay. >> So that's that's the majority. We spend right now our budget's about 10k a week. >> Okay. >> And that's

1:00:06>> that's a lot given wait that's across both locations for all >> we've had increased revenue since increasing that but 1.9 was last year. >> Okay. >> So right now we're at about a million this year. >> Okay. Okay. So, what stops you from like you just can't spend more than you are? >> Yeah. I mean, every time we hit the budget for the week, you know, we're coming into our busier season, maybe we get to 12 and then, you know, we just won't start won't reaching.

1:00:33>> Do you know where I'm coming from, though? Like it it it's like you're in How big's the market you're in? >> Big. >> Yeah. Like I just I I have a hard time believing that you're like $300,000 like we capped it, you know, um for this whole platform. >> Be the case. What? >> I said I would love for that not to be the case. I just want to do more. >> Yeah. Yeah. No, I don't I don't think it is. Um, >> so I think probably having a keyword strategy would be the next kind of big thing cuz that like you already have an inbound call set up I'm assuming.

1:01:03>> Yes. >> Yes. >> Okay. That would probably be the easiest dial to move cuz on keyword like search stuff, you can do 100 grand a month, no problem, and spend. Yeah. >> And that could probably take you to the levels that you're looking for. So, I was trying to exhaust like is there anything that's close to what you're currently doing? I wasn't getting it earlier. So, I was like, "Okay, we got to pick out something new, but um if you're not doing any like search keywords." >> Yeah.

1:01:28>> Like there's a lot there that would probably be my first thing to do quote semi more of technically it's new, but yeah. Go. >> So, you think include PPC with LSA even though it's like several like >> Yeah. Yeah. like you need to there's there's no there's no way on earth that you have cap like you just said like the the people in your market are doing way more than you, right? And there's no way that you've even come close to the cap on that, right?

1:01:56>> And just there's no way. And so we just need to spend more across more kind of flows of traffic. >> Okay. So stay on Google just more off Google. >> That would be my first like my my shest first bet. >> Yeah. Beyond that, you're going to have to try one of the co call it net new strategies, which would either be finding centers of influence, finding those, you know, the the property managers and then doing deals with them. And it's going to be a slower role, but obviously it's more recurring and there's higher higher value. From a selling perspective, commercial's recurring is what matters more than commercial versus residential. Yeah.

1:02:30>> Um, >> but yeah, I would I would hit that easy button before I would try the new thing. Is that track? >> Cool. >> Okay. Yeah. Sorry, we had to like No, you're good. Go through two two locations, two different businesses, two different LTV CACs to get there. But >> Alex, how do I convince rich clients to hire me when my case studies are all from lowerend small businesses? >> Bro, great question. So, I'll give you a tactical answer, um, which is you just basically need to decrease the risk for them. And so, people don't buy because of risk. Period. That is why they don't buy. And so they either buy because they don't buy because the price, they don't buy because of risk.

1:03:09They don't buy because of work, right? It's one of these things. So it's either you're asking too much of them in terms of what they got to do. You're asking them to take too much risk in terms of the outcome, which is going to be relative to the price. So what we can do is we can sync the price to zero. Okay, I'll do it for free. We can sync the work down to zero. I'll do it all for you. And so then the only risk they have is that the outcome won't happen, which we've tried to reverse as much of the risk as humanly possible. The way that the person who did my clips when I started doing shorts got me, I think I was like his first account or second, like not a lot, right? The way he did it was he just said, "Hey, I already see all this YouTube video that you got. I will clip them into shorts. You don't have to do anything. Don't pay me.

1:03:49Please just let me get permission to post. And in the meantime, if you don't want to give me permission, I will send you the clips and then you can post them yourself." And I was like, "Okay, man. Like, if you want to go make some make some videos and send them to me and I'll take a look at them and if I like them, I'll post them." And that is how it started. And so, I was he punched way above his weight class because he made a truly risk-free offer for me. And then as he made more and more clips and they were good, I said, "I'll give you posting permission so that you can post uh from the stuff that I had." And then as those did better, he was like, "You know what? If you actually made some shorts yourself rather than me repurposing stuff, it would do even better." And so then one day a quarter he flew out and we'd record a hundred shorts in a day and then that became the next 90 days of content or whatever.

1:04:31That's how we did it. And so every little bit that I gave him he did well with. Right? And so you know to whom much is given much is expected and also to the same degree. If you steward someone with a little bit and they multiply it, you give them more. Right? And so he did a lot with the little that I gave him. And so I kept giving him more and he kept multiplying it. And so you just want to get a shot. And so I think the big mistake that people are making you specifically in trying to get these richer customers is you're trying to have them take all this risk on.

1:04:57Right? You're like, I want you to pay me all this money. I want you to do all this work and I want you to take all the risk that it's not going to happen. Well, that's ridiculous. Now, once you have enough case studies, once you have enough proof, then you can say, listen, I have no doubt that I can that I can help you. I have I have a track record. And when you have a track record, then you can charge the premium prices. Boom. >> I have a D and D publishing business making Dungeons and Dragons book. And I've spent a ton of time doing the theory of constraints to the product development. Sure. Where I have a background in like IT DevOps. So I've been optimizing that and I've been realizing that I've been neglecting the rest of the funnel for like the whole businesses.

1:05:32>> Do you sell on Amazon? You sell Shopify. What do you sell >> primarily? I do it right now through like Kickstarters. >> So bunch of crowdfunding campaign. People give you a bunch of money to build this product. You then build that product. >> So you have a publishing business basically. >> Yes. >> Okay. Got it. >> Yes. And so, um, >> do you have a pen name? >> Sorry, I do have >> Do you have a pen name? >> Uh, no. It's all under mine. >> Oh, but so, but like, so you're an author? >> Yes. >> Okay, cool. >> Yeah. So, I'm I've made two books. I'm working on my third. I got a handful of like other supplements and stuff.

1:05:59>> Okay. >> And so, I've done I don't know, maybe like 30,000 in Facebook ads, um, miscellaneous other advertising methods, but that's not my skill set and not what I'm good at. So, I'm trying to think like like as going through the exercises, revenue is definitely my biggest constraint at this point. Sure. >> It's like I've done all the other stuff too much. I've been focused on that. And so I can make a better product faster, but I have need a better way to sell it. Like I need a better way to bring in customers. And so a bunch of the people have had great ideas on things to try like dipping my toes into Tik Tok. Um doing miscellaneous things on my email list. Um

1:06:33>> yeah, Tik Tok shop is kind of interesting. I'm sure to buy. >> Yeah, that's that's what Caleb recommended. So if I if if you were in my shoes and you took like a step back to look at the business as a whole, where would you look at trying to apply your resources to really like build up that revenue as efficiently as possible? >> Do you have um but all is all of your revenue comes from Kickstarter or they go to Amazon afterwards and then it becomes >> I'd say 90% of it's coming through Kickstarter and then >> on a regular basis.

1:06:58>> Uh there's a project that launches every year. Well, the first project took about 14 months to get to the second one. >> But you only have two books. >> Yes. So, I have a third project that I've already >> So, you have a launch business right now? >> Right now, yeah. >> Okay. So, there's like basically no revenue between launches. >> Yeah. People can go buy the stuff in between launches on Shopify that I've got set up. Um, and I've been thinking about setting up Amazon. >> You should set up Amazon. >> Yeah. >> We sell 50 times more books on Amazon than Shopify.

1:07:24>> Okay. So, with the the next play to >> I do a million a month in books. >> Okay. >> Oh, it's just as silly to me. were like [laughter] silly, ridiculous. The books are free. >> So So setting up Amazon. >> I'm like, they're free. You don't have to buy them. They're like, we'll buy them, right? Whatever. >> So setting up Amazon would be like the best revenue boost ignoring doing any marketing tomorrow. Yeah, for sure. >> All right.

1:07:50>> Cuz here's what's really interesting is that um I I did you watch my uh traffic ranking uh video? I put out like it's three videos ago. It's very recent. Anyways, I'll just tell you. I think so. So what's really interesting is that people don't think about Amazon as a traffic like a social media or traffic source. But I think like 13% of customers that Well, let's just test this. Watch my theory just look flop on this. Did anyone buy my book first? One, two, look at this.

1:08:19Cool. Okay, that's cool for me. Anyways, okay. Um, so people will buy the book and then they'll find me later somewhere and they're like, "Oh, that's the guy that wrote the book that I like." And so Amazon actually gets me customers. There's this whole misnomer that like you'll have to have an audience in order you have to have an audience to have a big launch. But if you have a good product, which it sounds like you do, >> then when you have 10,000 five stars, I buy books with if there's any business book that's 10,000 five stars, I'll buy I'll just buy it.

1:08:47>> And so number one is I would I would do Amazon for sure. Like for sure. It's where 90% of people buy books. It's like you're not on the biggest platform that that people buy and sell books from. Now you can still do your launches. I still launch through Shopify, so I can still own the own the customer base and all that stuff, but between by all means like kick it up there and and do it in multiple formats in multiple languages.

1:09:08Like right now, I think we have like >> 30 or 40 SKs from from from two books. So it's like we have all four formats and we have two books and then we have them in five languages and we have them on 13 platforms. So, we have it on Coobo Digital or Cooba. We have Drafted Digital. We have like, uh, what do you call it? Um, uh, it's kind of funny about publishing, so it's fresh on my mind. Um, Ingram, if you've heard of that, Spark, um, if you Google it, it'll come up. Um, and so all that to say, I think you just need to like the first thing I would do this quarter is maximize all distribution of the books on all platforms that people buy books on. The first thing the second thing I would do was try and expand my audience.

1:09:54like right now like let's just use all of the distribution that already exists. Let's do that first and then um you can do you know Tik Tok strategy or what whatever you want to do to to basically market any other product that that this works. Now, long term, once you get your third book out, it actually unlocks a bunch of stuff because you will be able to be profitable with ads because you'll be able to sell bundles and you can sell three books at a time and you can sell really three, but it's like six books because you're going to do audio and audio, digital, and hardback times three is nine books. And so, you can get away with like basically a $99 or$125 or$149 in terms of price tag. And you'll be able to you'll be able to to arbitrage the traffic that way.

1:10:32>> Okay. Yeah. You you would never buy one of these as like a audio book because it would be I mean essentially you're using this as like >> oh got it to build your character and stuff like that but I think the platforms could still make sense then for doing >> I'll say this >> you would be surprised. >> I would be very surprised. You're >> but like you'd be surprised. I my workbooks are audio but they're workbooks but people buy them on audio. >> I don't know if I've ever seen anyone try that but that doesn't mean it couldn't be done. people listen like listening is a very different experience

1:11:04>> and a lot of times people are like okay just having in the background >> because what's interesting like I get a lot of people tell me like oh yeah I've listened to your book six times >> right and just cuz like listening your your comprehension is significantly lower than visual because it's a second attention stream you're doing other stuff too and so it's like every time they listen to it they get something else it's the same book and so it might dude it'll take you a half day to narrate it like throw it up if you like this video and your 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.