Building a $3,000,000 Business for a Stranger in 57 Mins | Cash Cows | Ep 841

Summary

Podcast Summary: Building a $3,000,000 Business for a Stranger in 57 Mins | Cash Cows | Ep 867

Release Date: April 9, 2025

Introduction

In Episode 867 of The Game with Alex Hormozi, entrepreneur and business strategist Alex Hormozi sits down with Ben, the co-founder of Unfiltered Hospitality. Ben shares insights into his journey of building a successful cocktail consulting business, the challenges he's facing in scaling, and the strategic recommendations Alex provides to transform his operations and revenue streams.

Business Overview

Ben introduces Unfiltered Hospitality, a company specializing in bar and beverage program development. In 2024, the business achieved $1.1 million in revenue with a net profit of $123,000, reflecting an 11.3% net margin. Over four and a half years, they have assisted over 200 bars and restaurants in launching or elevating their concepts.

[00:44] Ben: "In 2024, we did 1.1 million in revenue, 123,000 in net profit, so about 11.3% in net margins."

Identifying the Problem

Despite moderate success, Ben faces significant challenges in achieving consistent revenue growth. His business experiences unpredictable revenue streams, resulting in months with high profits followed by periods with little to no sales. The primary issue identified is the high Customer Acquisition Cost (CAC) of $12,000, which far exceeds the expected Lifetime Value (LTV) of customers. Additionally, less than 20% of clients opt for upsells, indicating a potential mismatch in offers and lead qualifications.

[03:27] Ben: "Less than 20%."

[04:35] Ben: "Lack of consistency really feels awful. I don't know what next month is going to be."

Offer Optimization

Alex emphasizes the critical need to optimize Ben's offer to align better with his target market. He suggests lowering the entry price point to make the initial sale easier and building trust before upselling to higher-ticket services. Alex introduces the concept of a "Grand Slam Offer," aiming for a structured progression from low to high-value services to maximize customer retention and profitability.

[04:35] Alex Hormozi: "Number two, we have a super expensive cost to repair our customer. There's definitely an offer mismatch between what is being advertised and what they're selling."

Sales Funnel Redesign

A significant portion of the discussion revolves around revamping Ben's sales funnel. Alex recommends implementing a lead magnet to generate high-quality leads and reduce friction in the conversion process. By introducing a lower-priced initial offer (e.g., $5,800) that delivers immediate value, Ben can build trust and demonstrate ROI, thereby facilitating easier upsells to the $30,000 core offer.

[05:58] Alex Hormozi: "We're going to run that as an A/B test. Just run some ads... you collect this information twice in this funnel. I don't know."

Marketing Strategies

To attract the right clientele, Alex advises refining Ben's advertising strategy by clearly defining and targeting the ideal customer avatar—restaurant owners generating over $4 million in annual revenue. He underscores the importance of pain-based hooks in ad copy to resonate with potential clients' specific challenges, thereby increasing the likelihood of conversion.

[09:08] Alex Hormozi: "So I would say $30,000 is super expensive for just a straight call funnel. Very tough."

Growth Recommendations

Alex outlines a comprehensive plan for Ben to scale his business:

1. Funnel Redesign: Reorganize the sales funnel to include effective lead magnets and reduce friction.
2. Offer Structuring: Introduce a $5,800 pricing booster as an entry-level offer to facilitate easier initial sales.
3. Sales Process Enhancement: Transition from multiple sales calls to a one-call close strategy, predominantly handled by the founder to maintain high conversion rates.
4. Marketing Budget Adjustment: Increase marketing spend to align with the revamped funnel and higher lead volume expectations.

[28:31] Ben: "Got it. So I think the changes that Alex recommended for the funnel make a ton of sense."

[34:24] Alex Hormozi: "So what I'm referencing here is that I budget two times the cash I collect from the customer in 30 days when I'm testing new ads."

Addressing Customer Churn

Ben admits a significant issue with customer retention, noting that clients typically discontinue services after two quarters. Alex identifies this as a sign that the value delivery is insufficient and recommends enhancing the ongoing value propositions to ensure clients perceive continuous benefits.

[36:00] Alex Hormozi: "If you can't fix churn, there's no point in doing any of this."

Implementation and Action Plan

Alex provides a step-by-step implementation guide:

1. Simultaneous Funnel Redesign and Lead Magnet Deployment: Begin by overhauling the sales funnel while introducing a compelling lead magnet tailored to the ideal avatar.
2. Ad Callouts and Campaign Testing: Launch targeted ad campaigns with clear avatars and messaging, and conduct A/B testing to identify the most effective strategies.
3. Sales Process Overhaul: Transition to a founder-led, one-call close approach to maximize conversion rates and reduce CAC.
4. Continuous Monitoring and Optimization: Regularly assess funnel performance, ad effectiveness, and customer feedback to refine strategies and ensure sustained growth.

[56:14] Ben: "Love it. It's a lot of what I want to do."

Conclusion

The episode concludes with Ben expressing his confidence and appreciation for Alex's strategic guidance. He acknowledges the clarity and feasibility of implementing the recommended changes, which are poised to significantly enhance his business's scalability and profitability.

[57:05] Ben: "You figured it out, right? Yeah, got it."

Key Takeaways

• Optimize Offers: Align pricing and value propositions with the target market to reduce CAC and enhance LTV.
• Revamp Sales Funnels: Incorporate effective lead magnets and streamline the conversion process to attract and retain high-quality leads.
• Founder-Led Sales: Utilize the founder's expertise in initial sales calls to maintain high conversion rates and gather valuable customer insights.
• Continuous Improvement: Regularly assess and refine marketing and sales strategies to adapt to market dynamics and ensure sustained growth.

Notable Quotes

• Ben on Revenue Goals

  "[01:06] Ben: My goal, 3 million by the end of 2020."

• Alex on Offer Optimization

  "[04:35] Alex Hormozi: Number two, we have a super expensive cost to repair our customer."

• Ben on Overcoming Challenges

  "[36:00] Ben: Like we are not showing them the value. We're not demonstrating it in a meaningful way."

• Alex on Sales Strategy

  "[48:23] Alex Hormozi: So you're basically going to be able to stack potentially probably a double of your current revenue from this source."

Final Thoughts

This episode serves as a valuable blueprint for entrepreneurs facing similar challenges in scaling their businesses. Alex Hormozi's actionable insights and strategic recommendations offer a clear pathway to overcoming obstacles related to offer alignment, sales funnel efficiency, and customer retention, ultimately paving the way for significant revenue growth.

Transcript

[Alex Hormozi]

This is Ben. He's a cocktail consultant who helps restaurants and bars optimize their drink menus to increase profits. But his revenue is unstable. Sometimes he has a great month, and then other times he sells nothing. And sometimes that goes down. I'm Alex Ramosi. I own acquisition.com or portfolio of companies that generate hundreds of millions of dollars per year in revenue. What I suspect Ben needs to work on is optimizing his funnel, fixing his offer. He's trying to sell a $30,000 thing to strangers who've never even worked with him before, which is pretty tough. And then once all that stuff's fixed, spending more on his actual marketing. So the first thing I'm going to do is dive deep into the business. Going to break down all the tactics that he and you can use to scale your business to your dreams.

[Ben]

Hey, Alex. I'm Ben.

[Alex Hormozi]

Hello.

[Ben]

One of the co founders of Unfiltered Hospitality, where we help hospitality operators build better beverage programs.

[Alex Hormozi]

Tell me about the business.

[Ben]

So we are bar and beverage program development specialists. In 2024, we did 1.1 million in revenue, 123,000 in net profit, so about 11.3% in net margins. We've been in business for about four and a half years, but we've helped over 200 bars launch or elevate their concepts.

[Alex Hormozi]

So what's the goal? What do you want to do?

[Ben]

My goal, 3 million by the end of 2020.

[Alex Hormozi]

Big goals.

[Ben]

It's big goals.

[Alex Hormozi]

Yeah. Triple this year. All right. Yeah.

[Ben]

Triple this year.

[Alex Hormozi]

Rock and roll. So how do you get started?

[Ben]

In 2008, I started my life in the world as an investment banker.

[Alex Hormozi]

Okay.

[Ben]

And so I hated it. Quit my job there. Over the next seven years, I worked in bars and restaurants around the city. A few years after that, I opened my first bar. It was all going really well until 2020.

[Alex Hormozi]

Okay. We all remember what happened now.

[Ben]

It was just like this small pandemic. It's over now.

[Alex Hormozi]

So we're good. That's good.

[Ben]

Yeah. Fortunately, I got approached by a restaurant that was still operational, and they said, we need new cocktails. I said, great, I'm very good at that. So I tapped my business partner guy, and so we started Unfiltered Hospitality.

[Alex Hormozi]

All right.

[Ben]

Yeah.

[Alex Hormozi]

So who do you help?

[Ben]

We currently work with restaurants, hotels, bars, country clubs, cruise ships, nightclubs. If they have a bar, we help them.

[Alex Hormozi]

How do you help them?

[Ben]

We help them by taking their bar programs from good to great. Phase one, which we call better cocktail consulting, takes 90 days. We design a cocktail menu for them, we train their teams, and then we install an operating system to keep it all running smoothly.

[Alex Hormozi]

Phase one is Better Cocktail Consulting. Phase two?

[Ben]

Phase two is what we call the program Performance Retainer.

[Alex Hormozi]

Okay.

[Ben]

So the point of this is to maintain what we did with Better Cocktail Consulting and then continue to develop the program. And we do that by having a weekly KPI call where we check the scorecard to see how well your metrics are doing. We also then provide seasonal, monthly seasonal cocktails. We want to maintain the training, and so we have a quarterly training program where we fly out there and we train the team for two days.

[Alex Hormozi]

So you don't mind flying? That's good, because I have an idea for you. So I have an inkling that Ben needs to go up market. Restaurants that make over a certain amount of money, they're going think about like a business, not just like their passion project. Passion project. Business owners are kind of tough to deal with when you come from a business perspective. They're not willing to make, like, sometimes really obvious, clear, good business decisions for whatever limiting belief they have. Okay, so that's how you help them. How do you make money?

[Ben]

Great. Our core offer, which is what most people buy from us, is Better Cocktail consulting. We charge 30,000 for that. And again, that's just the development and implementation. And what we love to do is upsell everybody or at least have them initially buy the Better Beverage program, which is what we call Better Cocktail Consulting. Plus multiple program performance retainers.

[Alex Hormozi]

Okay. What percentage of people go from the core offer the upsell?

[Ben]

Less than. Less than 20%.

[Alex Hormozi]

Ding, ding, ding. So my little alarm went off when I hear, you know, barely 20%. That's an indication for me that there's probably an offer issue on the back end, maybe even the front end, or a combination of the both of how they work together. So what's the main problem? What's holding you back?

[Ben]

We need more. Better REITs.

[Alex Hormozi]

Yesterday? Yeah.

[Ben]

Yeah. Long time ago.

[Alex Hormozi]

Yeah.

[Ben]

Higher quality, higher quantity, more consistency because it's like too much. Too much variability, lower cost. Right. So the lack of consistency really feels awful. I don't know what next month is going to be. Is it going to be a good month or a bad month? The good months are pretty good, but I can't really fully enjoy them because the bad months are so awful. Because the way that we're doing sales now is we will go for days, sometimes weeks, without any leads at all. And finally, when we do get a lead, we'll get them on the phone, we'll have the calls, we'll pitch them. They'll get excited, will get excited and we get to the end, we present the price and deal is dead. So if you can imagine that massive drought followed by a huge disappointment. I'm really looking forward to getting rid of that. $12,000 CAC is crazy. Especially considering the LTV.

[Alex Hormozi]

Ding, ding, ding. Number two, we have a super expensive cost to repair our customer. And this is a customer that should probably, probably be 1500 bucks, 2,500 bucks, maybe $3,500 to acquire. So there's definitely an offer mismatch between what is being advertised and what they're selling if CAC is so high or they just have atrocious sales processes. So it's either an offer sales process issue or both. And we're going to figure it out.

[Ben]

What we've noticed is that our. Our best clients are existing restaurants.

[Alex Hormozi]

Yeah.

[Ben]

And so we're considering refining our targeting down, just serving restaurants that are currently operational. Making $4 million a year or more in revenue.

[Alex Hormozi]

What could you sell for like 8 to $10,000?

[Ben]

Something that we've tried in the past and could easily bring it back is essentially a diy. Like, we'll teach you how to do it. The uptake on that is what I would assume. Lower people have a hard time like doing things if they're already not doing things.

[Alex Hormozi]

I would think, is there a different thing that could be sold that was still in that price point that wasn't diy? I mean, basically I wouldn't position it as diy. I would just be like, we're not going to fly out. The good news is I think this is super fixable. Let's do the quick recap of all the numbers you got so far.

[Ben]

2024 revenue 1.1 million profit 123,000 CAC 11,800. Very high LTV to CAC of 1.7 to 1. Marketing spend without salaries is $10,000 a month. Close rate 6%.

[Alex Hormozi]

So come here real quick. Check this out. This is the $100 million scaling roadmap. Ben is at stage four. Prioritize and let me know if this sounds familiar. He's saying yes to anyone who would pay. He's got all these different types of. He's getting way too many unqualified leads. But he's getting people who are clicking. He's getting people opting in, but they're not the right types of people. Here's his next problem. The result of all this stuff is that he's got to specialize his product. He's gotta make better free stuff and have better creative to boost the volume and ad qualifications and friction. Sounding familiar? And so the thing is, is that as much as it always feels like this unknown journey when you're a business owner, businesses behave in patterns. We broke out after studying our portfolio companies, seeing where they got stuck and how we broke through and put into 10 stages. If you're curious about where you're at, this is absolutely free. Just go to acquisition.com roadmap, plug in your business information, and our automation thingy will tell you what stage you're at and what you need to do to get to the next level. So it's absolutely free. Go check that out. And if you want our team to, like, double check the work and make sure that it's the right one and give you more tactics around it, you can hop on a call on the next page and we'd love to help you out. The nice thing is that, like, I feel very confident that your business will grow because there's some really obvious holes. I think I honestly have what I need. Why don't you come on this side and then we'll probably. We'll powwow through it together. Does that work?

[Ben]

Yeah, that sounds great. All right, but before we get started, would you mind if I made you a cocktail?

[Alex Hormozi]

Ah, all right. I'll be saucy for our. For our cocktail.

[Ben]

Oh, no, don't worry, Alex. I took care of that. We actually have a number, the Grand Slam offer cocktail, which is really fantastic. Very refreshing. Really great for making sure that we both stay sharp and focused during the rest of our time together. But it's a delicious cocktail. As you notice, the Grand Slam offer, I took a page out of your book literally consists of a few great ingredients that are really going to help us stay on task. So we have grapefruit juice, fresh grapefruit juice. Squeezed it myself this morning. A ginger mint cordial to give it a little spice and a little herbaceousness. And then we have our pineapple kombucha. I know way more people's drinks than their actual names. Grand Slam offer.

[Alex Hormozi]

I am.

[Ben]

Mind if I bring it over?

[Alex Hormozi]

Yeah, by all means, let's do it. Thank you. Oh, look at that. We got full experience. There we go. All right. Thank you. Cheers.

[Ben]

Cheers.

[Alex Hormozi]

Oh, it's great.

[Ben]

Awesome.

[Alex Hormozi]

I can definitely see how the kombucha would take off the edge of the. Like, it could hide a spirit really easily with that.

[Ben]

Oh, yeah.

[Alex Hormozi]

Okay, so there's a lot of things so I think that we need to actually talk about the offer, which is something that I don't always get the opportunity to talk about. But I think that you have a clear offer issue. I think we need to talk about avatar. That'll be as it relates to the offer number three. And this is going to be a big one, is going to be the funnel. There's a lot of stuff that, like, a lot of missing things there that I think we can like really quickly fix and then sales and then finally maybe ascension. And so that's kind of the big, the big overarching theme. So right off the bat, I think that you have an offer issue. So either that means that we're getting the wrong avatars on the phone, or we're getting the right avatars on the phone, we're offering the wrong thing.

[Ben]

Okay.

[Alex Hormozi]

So I would say $30,000 is super expensive for just a straight. Literally just a straight call funnel. Very tough.

[Ben]

So when Alex said I had an offer problem, I had a strong feeling he was right. Because four and a half years into the business, if we're struggling the way we're struggling, there's got to be something broken. And if Alex says it's the offer.

[Alex Hormozi]

Good chance it's the offer for what you're looking at. CAC for a small business owner restaurant, I would imagine should probably be in the neighborhood of 1500, $2,500.

[Ben]

Okay.

[Alex Hormozi]

That's where that's like, if you were up at 3,3500, I'd be like, okay, fine. But it's going to be in that kind of range. And so I think there's a. You can probably cut it by at least 2/3 compared to the, you know, 12,000 or whatever that you're spending right now. So I think there's a lot of opportunity from that perspective. God, there's so much stuff. I'm just trying to think, okay, why don't we just start tip of the spear and let's open up the ads, since that's the one that we can control the most. So right off the bat, we need to have clear call outs. So we need to be talking about what avatar are we really looking for. So struggling to get the most out of your cocktail program. I don't know if that's necessarily even the language that would matter. I also wouldn't restate my name filtered hospitality because we already have it above there. So it's like it's some of the most valuable advertising real estate. And so I would probably have something to the degree of like, restaurant owners asterisk, asterisk, you know what I mean? And then like, second line, like, is your, like, are you doing over, you know, x million dollars per year? Or it could just be $4 million plus per year restaurant owners is call out number one. And then the question would be pain based hook. All right, so check this out. So I'm on page 136 of the leads book. The first part I'm talking about here is the call out. So we have to get the right people to the ad, and it is by far the most important. And so I'm trying to compress the things that he's looking for in his ideal avatar into just one line. So they're like, oh, I'm a $4 million plus per year restaurant owner or bar owner. Just put it there. And then like, this is for me. And once I do that, 80% of the work of advertising is actually done. As crazy as that sounds. What I'm getting into further after that is, okay, let's see if we can ask a yes question or an if then statement or talk about some ridiculous result. All of these things are kind of the line after actually calling out the prospect. Now, once you get a little further into the copy, I like using the what, who, when framework. So this takes the value equation, which I talk about in my first book, this guy, and tries to, like, explode this into many different copy variations. And so what we want to talk about is both the dream stuff, which is, what's the good outcome, how do we make it fast, how to make it likely, how to make it easy, and then on the flip side, the pain, which is what's your nightmare scenario? And so this gives you a lot of different angles to approach the copy for a customer, whether it's a B2C customer or a B2B business owner. And the reason I'm such a big proponent of pain in advertising is one, is it super compliant? Two, I have the belief that the more precisely you can articulate the pain of a prospect to that prospect and even describe it more accurately to themselves than they can articulate it, they will believe that you can help them almost better than any promise that you can make them. So if you're like, hey, did Sally say this yesterday? Did you have this problem that showed up and are you consistently running out of your most expensive ingredients? But then sometimes they go bad all of a sudden, like, God, this guy knows exactly where I'm at. And now I'm far more likely to take the next step. Has cocktails been less than 10% of your revenue year over year. Something like that. Right. Or because I know you said in the messaging they, they're not as receptive to like profit, money related stuff.

[Ben]

There are, there are avatars that do like profit, but a lot of them like recognition being.

[Alex Hormozi]

Yeah.

[Ben]

And being cool. Right? Yeah. They want to be cool and they want to be like popular. Like, they want to be able to show off.

[Alex Hormozi]

So people have different histories of reinforcement, meaning they've had good things that happened in the past from different things that they've done. And so if somebody did really well in school, they like, you know, getting A's and maybe the, the score matters more for them. Other people, it's like they like the applause. Other people, it's like they like showing up and having people flock to them. Like everyone has different drivers. We want to describe what it's like, the experience of success in as many varied ways as possible to attract the varied avatars as long as they meet our requisites. Like, is your cocktail program flaccid? Would probably do great.

[Ben]

Yeah.

[Alex Hormozi]

Has no one ever posted anything good about your cocktails in the last two years? If you look at your reviews on Yelp, have. Do you just have Long island iced teas and you know, vodka sodas? Like you might need a insert, you know, a bar rehaul. Instead of saying. Cause what this is, is super feature heavy data driven menus designed to get more orders, team training that delivers. Because all that sounds like work. Yeah, for me. And so what I want is what occurs as a result. Right. And so I'd be talking more at like clients see typically 10x their investment the first year, 30% increase in menu orders. I'm not sure if it like bites at me, you know what I mean? And so it'd be more like what the experience is like from people just ordering the things that they know off the top of their mind to getting excited when they open up your menu and then all of a sudden saying, oh man, I want to try so many of these. And then ordering two or three times more. So it's like dial into the experience of what the avatar is going to go through.

[Ben]

Right.

[Alex Hormozi]

And then I would translate it. Okay. What about the restaurant owner having, you know, your restaurant featured in some of these types of magazines, which honestly doesn't take as long as you think as soon as you make these types of changes.

[Ben]

Sure.

[Alex Hormozi]

You know what a lot of restaurant owners don't know is that one of the largest profit drivers in the business is alcohol. And it's the one thing that they're the least focused on. If you want, you can book a call. But even if you don't, what I did was I took the, you know, the top 10 worst drinks to serve and I'll show you how to replace them with the top with 10 drinks that are better than that, that work for just about any bar. Now on the thank you page, so you can download that on the next page. But on the thank you page, if you want us to personalize it to your bar concept, we'll show you how to organize the bar so you can get way more drinks served. You can do it with higher margins and you don't have to train people for nearly as long because if you set it up the right way, if that's interesting, book call next page. Right. And so that would be more or less my ad. Right. At least my ad structure. And so the big thing number one is that A, is that we need better ads.

[Ben]

Yep.

[Alex Hormozi]

So that's going to be both the copy. So we want callouts to Avatar, we want to have pain based hooks, we want to be more benefit versus feature driven. B, we want to bang and lead magnet. What we want to do ideally with a lead magnet is demonstrate authority and expertise with something that they didn't know that they should know.

[Ben]

Right.

[Alex Hormozi]

Because either you reveal a problem, you give a sample of a solution.

[Ben]

Yeah.

[Alex Hormozi]

Or you give a one step of a multi step process. Those are the three types of lead magnets you can give. So check this out real quick. So this is a perfect example of an offer and lead magnet mismatch. So kind of what I was saying in the beginning, like we're honing in here and I'm pretty sure this is the problem. So what I explained here, this is page 30 of the leads book. He's trying to do this. He's trying to go from low trust straight to a sale. Right. In that scenario he might sell a couple of people, which he is. But instead what I'm trying to get him to do is put some sort of valuable lead magnet first which goes getting people from low trust to high trust. And then that increases the number of people be more likely to buy from him after demonstrating value. This is probably the first big jump that we're going to do in the business that I think is going to have a huge impact on the growth. And what I was referencing for him is under lead magnets there's always a continuous problem solution cycle. And so the three types of lead magnets are just Like I named real problem, have a free trial or one step of a multi step process. It's almost like I wrote the book on this.

[Ben]

Like I think that's the right direction because I think it being cocktail focused. Because right now we've been working on a lead magnet that's profit focused.

[Alex Hormozi]

Okay.

[Ben]

And it's straightforward. I mean essentially it's a tool that they use in Excel and they pull up a PMIX, they put in their top 10 sellers. The quantity is the price.

[Alex Hormozi]

Yeah.

[Ben]

They make a 50 cent $2 adjustment and $50,000 in profit.

[Alex Hormozi]

Yeah, yeah.

[Ben]

You know that's great for the profit driven avatar.

[Alex Hormozi]

Yeah.

[Ben]

And so I don't know if there's a way to like kind of stack lead magnets.

[Alex Hormozi]

So I wouldn't stack them. I would just test 1 versus 2.

[Ben]

Got it.

[Alex Hormozi]

So if we were to just test 97 versus 47, you might think, okay, well maybe, you know, just from the front end, $97 in the test that we've run, actually it converted almost the exact same amount, but it was twice the money. So that was a good idea. But where the real money was was the fact that people who bought this were way more likely to spend money. Now for me to answer, why? No idea. Just know that. And so this is why we test all the way through ltv. Not just which one gets more opt ins or which one gets more sales. In terms of volume up front, you might find though, is that maybe the cost and this is why it's important to track all the way to the sale.

[Ben]

Yeah.

[Alex Hormozi]

Is that you might find that the profit driven one cost three times as much to get the lead. But you close more sales.

[Ben]

Sure.

[Alex Hormozi]

And I'm going to show, I'm going to break down some more funnel stuff in a second because I'll show you how we need to reorganize yours. But I would just run that as an aba. So you're going to run some ads. We're like, hey, so you'll do the same exact intro. And then the transition will be like, and if you want the top 10 drinks that you shouldn't be serving that actually hurt bars and their profitability, download my thing and I'll show you 10 different ways of making them that are more profitable and faster.

[Ben]

Got it.

[Alex Hormozi]

And then the other one is like, and if you want to see how much revenue you could potentially be missing out on, I have a tool that we use internally that I'll just give you for free. You can plug in your numbers and then it'll spit out exactly what the opportunity is. And if you're like, you know what? I'm not really a big Excel guy. That's fine. On the, on the thank you page schedule call will walk you through it. Specific to your bar right now. Right, right. So I think both those work and I would just split test that. Like I don't know the answer to that question. They will, but lead magnet for sure is one of the things that's missing from these ads and also probably why you're not getting the conversion you need to on the landing page. So why don't you click. So we're gonna swap this ad out for an ad that talks about the lead magnet, has a pain based hook and kind of mirrors some of the copy that I just went through. Okay, go for it. Okay. So right off the bat, like the most expensive real estate on this page is top to bottom. You having your logo at the top. Nix. It doesn't matter. No one knows who you are yet. They're coming from cold ads. And like this isn't the branding opportunity.

[Ben]

Got it.

[Alex Hormozi]

So yeah, this is direct response. So better bar program. I would take that out because they don't know what they're opting in for yet and that doesn't mean anything. Launch an elite high profit bar. I would split test the hell out of that. It might be become the hottest bar in your town.

[Ben]

Okay. Just try out a few different.

[Alex Hormozi]

Yeah, no. A hundred percent. And then beautiful cocktails, professional team and seamless operations. I would nix that. So I would want the sub headline to be basically the single largest concern someone has about the promise of the headline.

[Ben]

Got it.

[Alex Hormozi]

So here's this amazing thing and here's that thing that you're thinking about now that you don't believe me. And so let me tell you why you should believe me in the next line.

[Ben]

Right. Like the reason your cocktails suck is because like.

[Alex Hormozi]

Yeah. I mean it could be like or without. Right, Right. So launch an elite high profit bar without having to redesign your existing location. Without buying expensive ingredients that go bad or having a expensive training process.

[Ben]

Sure.

[Alex Hormozi]

I don't. This is just me thinking if I were a bartender. So here, there's a lot of pieces to this and I don't think you need any of them because I've already gone through your funnel. I would basically drop this to just. I'll tell you why. So I'm okay with all of these if it basically you collect this information twice in this funnel. I don't know. Have you gone through it?

[Ben]

I. I Built it.

[Alex Hormozi]

Okay, so let me. So let's go through it. Let's just go, you know, aaa. Just. We just put whatever in. Okay. A8aol.com. So that was me.

[Ben]

Yeah. Okay. My director of office was freaking out. She's like, is that you guys?

[Alex Hormozi]

She's like, we got a lead. We got a hot one. So let's say we click here now. Just click whatever time. All right, so now I got to put it all in again, right? I'm like, God, this sucks. So this is a really classic business owner mistake, which is that a lot of business owners haven't even gone through their own sales process. They set it up two years ago, and they haven't, like, gone through it. You would be amazed at how many times you change a couple of things, and then you go through it again, and you're like, God, this looks horrible. Except you're, like, running traffic to it. And this is what customers are saying. And I'm guilty of this too. So I'm not saying I'm immune to it. And so having some regular cadence of actually going through, clicking the buttons, because this is obviously a ton of friction, and this is bad friction. Good friction is you add qualifications, you make sure the right people are coming in, the bad people are going out. But this friction of just having people, like, repeat opting in for stuff or, like, very slow load times, that's bad friction. That gets both good and bad people to stop opting in. So fundamentally, marketing down to having the sweet spot on friction, because if I were to advertise, hey, here's my phone number, and this is how much it is, call me to buy, that would have the least amount of friction in the process possible. But the issue is I'd probably get a ton of people to call or maybe not, and it's just like, it's too fast. On the flip side, if you make people jump through 30 hoops, you might have a perfectly qualified customer. But you're missing out on 90% of the people who would have bought if you just made it a little bit less frictioning. And so it's all about the sweet spot between both extremes. And in general, the more expensive the product or service, the more friction you'll generally need to add. And so my little moniker for this is the bigger the plane, the longer the Runway in order to get it to take off. Okay, so now that we're. We're back here. So first off, this needs to not be on YouTube. So you need to get somebody, because otherwise it looks. It looks Hokey. Get it on any third party, get it on a Vimeo, whatever. Yeah, you don't want other recommendations. It's just like it's taking people off the site and I don't think it looks good. Right, whatever. This is what your new funnel is going to look like. So you're going to have hopefully this looks like a book.

[Ben]

Yeah.

[Alex Hormozi]

Okay, got it. Okay. And then we have your email. We've got our headline, sub headline, and then we've got our image. Right. So then that's then going to go here, which you have. Congrats. And then we'll have our main, our secondary headline. Now here's where you put the video above the scheduler.

[Ben]

Okay.

[Alex Hormozi]

And then the scheduler is going to be here. So this will be vsl. Then they'll have the booking and then post booking will have a separate thing here which will one have the VSL and the lead magnet. So it's just like that way they can go to their email to get it, but they also can click here to get it. Just makes it convenient for them. But what we have here though is basically how to prepare for your call and just more selling. Yeah, I'm a huge advocate of having videos or kind of sales materials prior to a human intervention. And the reason for that is if you've ever done sales on a consistent basis, you end up kind of repeating the same presentation, if you will, over and over and over again. And so then it starts to sound rehearsed. The other person zones out, you zone out because you've said it so many times. I like taking all of the stuff that you kind of repeat over and over again in a sale and front loading that. And so when you're on the call or when you start the call, you can start it like, okay, how's everything sound? And now we can basically start from the beginning to making a decision rather than like just like another prerecorded, you know, vomit of a salesperson. And the other benefit of a video is that there's a lot more visuals. Right. Like if you're talking on the phone, you're talking on zoom. You'll be limited in the amount of visuals you can probably provide. Whereas here you might be able to provide charts and graphs and statistics and visuals that make it more compelling and easier for somebody to understand. I would rather have the perfect pitch delivered every time in an automated format and then have the customization be what the conversation is after the fact to get them to decide to buy or not. This is the new funnel, right? And this is what we advertise.

[Ben]

And just real quick, this is after they schedule vsl. This is the VSL again.

[Alex Hormozi]

It's just a different one, but.

[Ben]

Yeah, that's a different one, but more like prep for sales call.

[Alex Hormozi]

So think about, like this. Think about all the things that people present with on the call early that are their biggest concerns.

[Ben]

Okay.

[Alex Hormozi]

That's what you put there.

[Ben]

Okay.

[Alex Hormozi]

So you might be wondering this. You might be wondering this. So let me. Let me put your minds at rest. So these are the things you need. You don't need this. You do need this. If you're concerned about these four things, I'll break them down one at a time. So first things first and then walk through it and I'll be on. So, you know, have a computer. It's going to be a zoom call or expect it from this number, whatever.

[Ben]

So call prep concerns. And this vsl. This one's like more about like pain and promise. Okay, got it.

[Alex Hormozi]

Yeah. If we honestly, like, if we just do this, you're probably gonna like, significantly increase your sales. And we do it like, I mean, like, we could probably do nothing else today. And like, that's all that has to be done.

[Ben]

Right.

[Alex Hormozi]

Is that the ads need to go to the right avatar.

[Ben]

Yep.

[Alex Hormozi]

Which is called out. We're actually gonna give them a reason to go to this page that they can immediately get value from. They're gonna opt in. Then we have our. Now if you want to do more of the. You want to add more of the information that you were collecting over here, you can. That's fine with me. As long as it's fully integrated into here so that they don't have to do it twice. If you want, you can put a little on this side, like in like a black banner across the top of this that has, you know, for $4 million plus only.

[Ben]

Yep, got it.

[Alex Hormozi]

This is, this is a big. A big part of this, of what we were talking about earlier. Sip my brain juice for a second. Well, I'm gonna spill it. I got a lot of stuff in here. Okay, so you're confident about the $4 million avatar. Is there any reason that 2 and 3 million dollar avatars don't work?

[Ben]

They do. They just. They're gonna be a harder sell because their ROI isn't necessary.

[Alex Hormozi]

So then let's get to the offer part because this, this like, because this is. This is the. This is the funnel and process. But now let's talk about the offers that we're selling here. All right, so let's Put this. Cause now this is going to go to the phone. This is a phone for everyone who is born before. Sorry, after. After 1995. So these are the offers. Okay, so Ben has a clear offer problem. I wrote my entire first book on this issue because it's one of the most common problems that limits businesses. And the offer is a strategic thing that you do in that it affects the entire business. If you change your offer, it changes the advertising, it changes the conversion process, it changes your pricing, it changes your deliverables. So it changes everything. But because of that, if you nail the offer, that's where you can have these massive upticks in growth seemingly overnight. And so I'll just read this little piece for you. No offer, no business, no life. Bad offer, negative profit, no business, miserable life, Decent offer, no profit. Stagnating business. Stagnating life. I would say he's right. Now between two and three. Good offer, some profit. Okay business, okay life. And then what we want to build is a grand slam offer. Fantastic profit, insane business and freedom. That's what we want to get to. So let's break this out. Yeah. So I think that that offer straight off the bat, selling $30,000 up front, really tough sale. Totally, very, very hard sell. So I like that he's charging premium prices for premium services. That makes sense. The problem is how he's selling it and when he's selling it. The right offer at the wrong time is still the wrong offer. That's the problem he has. And so this $30,000 thing absolutely should be. And maybe we need to change that. Maybe that should be a 60 or $90,000 thing. But selling it right off the bat is kind of like he's getting people who've never met him before to just get on a call and then just try and buy rather than try and go for that. I'd rather go for a much easier sale that with that first product or service, we can give them the information. So that now our entire business is about upselling customers into our 30, 60, $90,000 thing. Rather than spending six phone calls to close somebody on a $30,000 thing and having people drop off at each of those steps. This is how I, if I owned your business, I would have my front end thing be like five or six grand. I would have it solve one very specific problem very well. That more than, you know, gives them a 50k ROI on a $5,000 thing. But it's built in purposefully just to get the quick sale transition from prospect to customer. One Call close. Not three. Call closes. Which I'm sure you're having to do right now just to close. Right? Yeah. Your arm wrestling people to get 30 grand. We're missing the point of even having this simple sales funnel. And so get the 5K, do the three calls you were gonna do as a sale anyways, provide value for those three, and then at the end, sell your 30k thing.

[Ben]

Got it. So I think that the changes that Alex recommended for the funnel make a ton of sense. I'm not a professional funnel designer. I've really only been doing paid ads for the last year and listening to somebody who's got as much vast experience like Alex, tell me exactly what I need to do is super helpful. And I know that I could probably figure it out over many, many years and painful processes, but ultimately, having this path to create a funnel that works is gonna make me feel a lot better.

[Alex Hormozi]

So what can we split off? That's like five or six grand that would be immediately valuable to them. That doesn't require a huge amount of work. But they could just, like, they could use your calculator. They could make these changes and immediately see, like a return. That would then create the necessity for your main thing.

[Ben]

Yeah. I would say that the pricing thing is massive.

[Alex Hormozi]

Okay.

[Ben]

Another thing would be like to just very basic sales training for their teams. Like, they need a script. Like they're bartenders and servers. If you don't have a script for your sales team, you have no idea. And the way you look at that is very straightforward. How many drinks per person are you selling? Right. You know, number of guests, you know, how many drinks you're selling. You know, drinks per guest.

[Alex Hormozi]

Yeah. Boom.

[Ben]

That's like a pretty easy metric to, like, how to, like, grasp onto which.

[Alex Hormozi]

Of those is easier for you to deliver on.

[Ben]

The pricing is like, massively easy because.

[Alex Hormozi]

They just have to change their penis. Then I would. I would go pricing on it first.

[Ben]

Yeah.

[Alex Hormozi]

Because also there's immediate value in that. What I would do is like, let's back calculate how much more profit you would have made last year if you had these prices.

[Ben]

Yeah.

[Alex Hormozi]

And then they're like, holy shit, I would have made 100 grand. You're like, cool. So pretty good return on the five.

[Ben]

Yeah.

[Alex Hormozi]

Great. If you like that, you're gonna love what I have for you next, which is how do we actually make sure this happens consistently? Quarter over quarter. This is actually what we do with our, you know, with our premier. Our premier customers.

[Ben]

Right.

[Alex Hormozi]

It's too cold of a sale right now.

[Ben]

Yeah.

[Alex Hormozi]

So either we have to have a much longer sales process or we lower the bar so we can just get them in the door and then we can upsell. Right.

[Ben]

And the profit booster, which is what we call it internally, is like, you think that that is going to be meaty enough for them? Obviously it's 5K.

[Alex Hormozi]

We're not selling 30, it's 5.

[Ben]

Right.

[Alex Hormozi]

It's like, dude, if we just fix this one thing, I'll more than. I know what your market looks like. We have comps in the area. We can tell you what this market can sustain. And that way the question is, what's it worth to get it right on the first shot? So, like, for sure, I could say, hey, just bump your price about 10%. But you probably freak out about that. Of course you would. And rightfully so. So what we're gonna do is remix a couple of the things, get the prices appropriate to your area that we already know we're working. So you don't have to. You don't have to sweat about it.

[Ben]

Right.

[Alex Hormozi]

Done. So it's like the only real cost to you is reprinting your fucking menus.

[Ben]

Right. And then the next step is like, do you want to raise your prices again, but sooner will you need a better quality product, better trained bartenders, et cetera? And I feel like that could help them kind of understand that they will have that opportunity to do it again sooner because they already got the bump.

[Alex Hormozi]

And the reason I want this one is because this is fast and easy, which I like. Selling those things first.

[Ben]

Sure.

[Alex Hormozi]

You have to do this in order to do this, so you might as well sell this first.

[Ben]

Okay.

[Alex Hormozi]

And the fact that it's easy and fast and profitable like that checks all the boxes for fast, easy, risk free. There you go. Right. I think we make this 5800 on the phone for the pricing booster, whatever you want to call it. Yep. And then what we do is that then leads to the quarterly retainer at. I think you had 9k per quarter. Right. And that's probably how I price it.

[Ben]

So Alex's idea about the $5,800 offer really makes a lot of sense when he was explaining that trying to sell somebody a $30,000 service cold.

[Alex Hormozi]

Hey, guys, real quick. This podcast only grows from word of mouth, quite literally. There's no other way to grow a podcast and word of mouth. If there's some element of this that you think somebody else should hear or it'd be relevant to them, it would mean the world to me if you shared this Via text, via Instagram, via dm, via whatever way you like to share stuff with people you love. Thank you.

[Ben]

Isn't working. There was a little bit of an aha moment, but actually it makes a ton of sense. So I'm excited to try to find an opportunity to give our clients or prospects that will become our clients exceptional value right off the bat. Will one make it a lot easier to go to the next step and also give us a lot of quick wins so that we're not constantly putting in all this work to get nothing.

[Alex Hormozi]

Trying to think about the easiest way to do this, I would probably end up doing a rollover upsell. So we're selling step one of a multi step process. That's what this is. And I would seed that up front. So when you sell the thing, it's like, listen, I'll be real with you. My whole goal is to give you this pricing audit. I'm just going to easily ROI myself and like everybody will be happy. What I really want to do is help you really transform the bar because you know you can only do a pricing change once and then after that what do you do? Right? But even if we make this pricing change, great, we made you an extra 100 grand, but wouldn't it be cool to make an extra million? Now I'm not promising that because obviously your results will vary depends on your market. But what I can do is basically walk you through what it takes to truly build this into a staple that then also drives people into the food side so it becomes a virtuous cycle. And so what I want to do is take Your, your, your 5800 and I'll credit towards the year. So if you're wondering should every business have a back end and a front end or multiple offers, the answer is it depends. And I know that's a terrible answer, but tell you what it depends on. There's a certain amount of information that is required for somebody to make a decision depending on where they come in on that continuum of needing a little bit of information versus needing a lot of information, then there has to be more selling that must occur. Then the next constraint that comes up in the business is cash flow. Well, if we're spending money to get these people in, we want to recoup that cash as fast as we can. And for somebody to buy maybe a hundred thousand dollars thing, it takes more time and more information to make that decision. And during that time we're spending all this money in labor and advertising, but we're not seeing any Return. The idea of sometimes having a front end and back end offer is mostly just pull cash forward, offset the cash, the cash outlay. Which is another way of saying decrease the payback period or increase the cash conversion cycle. Lots of fancy words, but basically just get money back faster so that then everything after that's all gravy. You recoup the money. Now you get another customer and then this person's all. In the inception process, for example, his advertising was all brand based and all inbound. Then he could probably get away with just going straight to a more expensive thing because they've already consumed so much information prior to that. But since he's almost entirely based on cold traffic ads, we have to lower the bar to get people to just take that small jump so that he can then prove himself to then take the big jump.

[Ben]

Seen that before.

[Alex Hormozi]

Yeah. Because it works.

[Ben]

Yeah.

[Alex Hormozi]

And so. And you do it, but it's like you only get that if you do that during the two to four weeks that we have.

[Ben]

Right.

[Alex Hormozi]

So that's the, that's the time window we can apply it towards. Right. And if you want, I'll apply it to your first payment. So you know, the 9k becomes 4k for your first quarter and then you go into 9k after that. Or if you want, one of my personal favorites is just knock off 1500 per quarter. So make this 10, 5 or you know, 10k per quarter. But if you do it now, it's 8500.

[Ben]

Got it.

[Alex Hormozi]

And we knock it off. That way we spread the discount over four quarters. I gave Ben two different ways of applying the discount. I prefer spreading discounts because I don't want an easy yes. And then go from 4k to 9k and then them say, oh, actually I'll just get the quarter and then I'll cancel. I'd rather spread the discount out and get the commitment over the long term. And so if someone's willing to pay the 8,500, they're like, okay, well that was nice of him to credit the 5,800 or $6,000 towards my payment. So it's like a nice gesture. It encourages people to take action, but it's not so much so that it's getting the wrong type of customer in because the price is going to double. That way you're not crushing your first payment.

[Ben]

Sure. And the 9K per quarter, which is what we're doing, that is continuity on the better cocktail consulting thing. So how do we.

[Alex Hormozi]

How sticky is that? How sticky is it? How are people re Upping the actual.

[Ben]

Design and implementation of their cocktail menus.

[Alex Hormozi]

Or are people churning out of this?

[Ben]

They. Yes. Like basically anybody who buys it as part of the initial package, they don't continue on with it. Like they stop after two quarters. I have my suspicions on why that's happening.

[Alex Hormozi]

Okay.

[Ben]

Why we are not showing them the value. We're not demonstrating it in a meaningful way. Like we're supposed to fill out a scorecard. We're supposed to show them week over week how much better their program's doing or not. You're not doing it that well. I have.

[Alex Hormozi]

Well, you have the team, sure. Yeah. So there's a little warning alarm that's going off for me right now, which is that if people are churning out in two quarters, basically two payments, that's not a good sign. You know, he nailed it. He's not providing value. That's a kind of a more amorphous big term. But underneath of that, it's like the question is why? One of the difficult parts with consulting or education is that if you are, what I would consider, quote, a one trick pony. I'm not saying Ben is, but if you are, then once you kind of like implemented your thing, it's like, why should someone keep paying you? So I like to figure out ways that we can have some sort of consumer consumables or something that is always changing the business that is required for you to keep providing value. One of the benefits of a bar restaurant is that they're always getting new staff in, and so new staff needs to get trained up consistently. Now, the downside is if they learn how you train, then they'll just say, well, I'll just train them myself and not pay you this money. We have to figure out a way to make the back end stickier or just accept that it's not and then charge an appropriate amount of money for it so that you deliver that value. You have a good margin and you just understand that that's the nature of the business. And the good news is there's a gazillion restaurants and bars, and so you'll be able to do that for a very long time. Well, some people try to create recurring revenue for recurring revenue sake, but some products and services are not really meant to be recurring. There's a reason that after four years of education in college, you graduate after high school, you move to the next thing. Like education in general tends to graduate people. They learned, and because they learned, they no longer, you know, should continue. Now, how does the education system deal with this, they just give you more and more majors and you can become a master and you have a PhD and you can be a double secret PhD, right. They'll just always give you something else. It's more common in like an education and consulting business like his. But the businesses that are most valuable obviously are businesses that once someone comes in, they never want to leave or stop paying. But it doesn't mean that you can't make a ton of money in businesses that you do just one time services on. So I don't think there's anything wrong with that. There's just less enterprise value. Why aren't they doing it?

[Ben]

I think there's a little bit of resistance to just kind of numbers in general.

[Alex Hormozi]

From them?

[Ben]

From them. I co designed that component of it for them to do.

[Alex Hormozi]

Is there a way that you can just get a login to their system and then collect it?

[Ben]

Definitely.

[Alex Hormozi]

I'll bet you if you logged into their system and once a month they had a meeting with you where you showed them their numbers. Yeah, it would almost feel like I had like this guy knows all my stuff. I have to, you know what I mean? And so I think that would be worth the extra time. Cost me was two hours per, per account or whatever. Who cares, right? That to me feels worth improving. Because if you don't, if you can't fix Churn, there's no point in doing any of this.

[Ben]

Right.

[Alex Hormozi]

Because otherwise you just have people falling off the back. It's like we have to start with people staying and then we can fix all the front end stuff because why would we pour more to a leaky bucket?

[Ben]

Right.

[Alex Hormozi]

So how does this process feel overall?

[Ben]

Feels great. I mean, it's in line with the direction I want it to go in. It's just obviously laid out much more clearly and using a system that, you know, works.

[Alex Hormozi]

Okay, good.

[Ben]

As an entrepreneur, you try to figure out a lot of things on your own. You can do it a lot of ways. You can do it by doing the research, trying things out, or working with people who have been there and done it before. With Alex, not only has he been there and done it before, he's been there, done it incredibly well multiple times for businesses in tons of different industries. And so when he says that something's gonna work, I believe it. The sales training is like the intermediary. Is that kind of what you're recommending here? Because in my head, the offer component starts with the pricing part because that's the easy win. Right. That would then move into the cocktail Consult the better cocktail, the $30,000 offer and then that would move into the 9,000 a quarter.

[Alex Hormozi]

Any reason to not just push them.

[Ben]

Into continuity because they probably still have shitty cocktails. I could make that just. I could just say we'll start, we'll just do our program and we'll do it in the first few months. It'll be the first quarter, we'll be program. That's fine. As long as we can maintain the continuity.

[Alex Hormozi]

Yeah. There's an offer structure that I like a lot called the wave fee offer. So basically I could say listen, this thing I charge $30,000 for. Yep. If you commit for the year, I'll waive it. But you're committing for it now. If you want to cancel two quarters in, you have to pay me this.

[Ben]

Yeah, got it.

[Alex Hormozi]

So it's like I'll eat the cost if I take the risk on. You make the commitment, that's the risk you take. And I'll front you all this work if you take the risk. Actually you want to have the. You don't want the commitment, then pay for that. I'll do it. And then it's quarter to quarter. Yep. Which one would you prefer?

[Ben]

Got it.

[Alex Hormozi]

But now it's an AB close.

[Ben]

Right.

[Alex Hormozi]

That help?

[Ben]

Yep.

[Alex Hormozi]

Okay. I'm going to talk about essentially in a second, but I think, I think big picture we have funnel redo. Yep. So we got that going. Number two is add call outs. Three is we have new lead magnet. Four we have inside of phone redo. We have three step and then Vimeo video above scheduler and then we have integrate scheduler with optin. All right, let's pull this page up again real quick. So I'm gonna design this as though it were the second page because the first page is really simple. It's just headline, sub, headline, image, optin. That's it. Alright. So basically the first half here you could peel off and make that the first page. But you'll have a picture of the thing that you're. You're going for.

[Ben]

Right.

[Alex Hormozi]

Then you're going to remove the. The top two. You know, you remove your logo, you're gonna move better bar program. Take that out. Beautiful cocktails is going to be the. Without X, Y and Z that you're confer. You know your biggest concerns. Now let's scroll down. All right. Cocktails of capture. Highly trained bar teams. Functional product. I would think about it like this, like create drinks that create regulars. Get staff that customers can't wait to come back to and tip like crazy. You Know, parentheses.

[Ben]

Sure.

[Alex Hormozi]

And then functional operating processes.

[Ben]

That's like all about headache reduction.

[Alex Hormozi]

Yeah. I want to think about like functional operating processes. The way to the. What I think about when I'm writing copy.

[Ben]

Yeah.

[Alex Hormozi]

Is what are the moments. So if I have functional like operating process, what's the moment for me as a restaurant owner or a bar owner that I would experience the benefit of functional operating processes? Is it when I realized that I didn't have to throw out all this inventory that I like, all these old pineapples that I thought I was going need and then toss out like, like what's the moment or moments.

[Ben]

It's kind of one of those things like when you notice the pain isn't there anymore. Right. Like that's a hard thing to kind of put your finger.

[Alex Hormozi]

Well then tell me what the pain is. Pain works fine.

[Ben]

Like the pain that they typically have with dysfunctional operating process.

[Alex Hormozi]

Yeah. Give me a moment.

[Ben]

Is like when they walk in the bar is a total mess because no one knows how to set it up.

[Alex Hormozi]

Like no more disaster. Back, bar back or back of bar. Like it just like you can do the negative or the relief of the positive. Okay, now let's scroll off. Okay. A lot of consistent, proven results. I would say like we drive quarter over quarter alcohol sales growth because that's what it. That's what to me, proven results doesn't mean anything. As a word. 30% cocktail sales, 40% return to beverage, 50% speed of service. I would actually use the numbers as the subtext and I would use the benefit as the primary text.

[Ben]

Okay.

[Alex Hormozi]

So speed of services, like get rid of waiting lines. And then it says underneath 50% boost in speed of service. That's me personally. So I referenced earlier in the ads around the copy, but now we're applying, applying the same frameworks from who, what, when to the landing page. I like to speak in terms of moments because people don't really like they have to translate or unpack a word of like a process or some specific improvement. It just takes mental effort. And every piece of mental effort you ask someone to use, a certain percentage of people say, nah, I've got other things in my life and they'll dip. I want to pre digest the food, I want to pre digest the pain and explain the moments that they probably recently experienced that will then make them believe that I have complete context on their problem and therefore for a high, likely to be able to solve it. So there's a number of really small things that you can do at a page that can Have a really big improvement. First off, like, everything that someone sees above the fold, that's the most important part of the page. What happens on someone's mobile device or their desktop before they scroll, that's above the fold is kind of what they say in the marketing world. If you've got the name of your business and it's cold traffic, they don't know, they don't care. So take that out because they don't know who you are. And so then the headline itself, it's like, we want it to be some sort of very clear reason for them to move forward. And then I usually have sub headlines that clarify or add context to the headline. And so oftentimes that'll be like without X, Y and Z or without pain, it qualifies it underneath that. It's like, I want it to be as simple and clear as possible what they're going to get. And then basically everything below the fold is just, if you're still skeptical, let me just give you more information to make the decision. But I want all of the information I'm providing to be relevant to why someone should move forward, not just like a whole bunch of stuff about us. And then make sure that you have disclosures around, around results to make sure you explain how these things are calculated. And otherwise it could just be an unsubstantiated claim. So, lead magnet. So we have the new lead magnet, we have the new funnel, we have the new ad call out. So this is great. We're going to have the $5,800 pricing offer, which I like, and then Ascension, which is going to be a rollover. I think there's a C in there somewhere. No ascension via rollover plus waived 30k offer. All right. Also, the thing is this, this in person onboarding is going to serve as such a good, like first experience for them because you're going to fly out your fixed point. They'll be like, wow, this was so worth it. And right now your team does all of this stuff, right? Not you.

[Ben]

I'm all acquisition.

[Alex Hormozi]

Okay, you're up. The people flying out is your team.

[Ben]

Exactly. Yeah. No, I never, I stay at home.

[Alex Hormozi]

So what I want to do. Yeah, so what I want to do is add an ultra high ticket with you.

[Ben]

Yeah.

[Alex Hormozi]

So just 5x the price and you can present that first. Yeah. Get the gas and be like. Or I can tell my team, do it to me the exact same process. It's just I got a wife and kids and so you want me out there, I'll do It happy to. And it's just obviously, you know, this is what we do, but they're gonna run the same playbook.

[Ben]

Got it. So effectively, the $5,800 pricing is part of like an extended sales office.

[Alex Hormozi]

100%. Instead of taking three calls or four calls like you are right now, just get paid, deliver the value, and then once you have an exchange, they get more than what it's worth. Customers versus prospects are like 10 times more likely to buy again, of course. And so just get them, make them customers so you can increase the likelihood so then they buy again.

[Ben]

Right. Give them a ton of value, have it all, be with me.

[Alex Hormozi]

And it's easy because this is just pricing related. Right? It's pricing, you know, 15, 30 day fix. They immediately see the value. Like, dude, if you like this, you're all that.

[Ben]

Right. Do you feel like there's a ton, like a lot of value for me doing all that fulfillment or do you think that that's something that I can also have somebody on my team?

[Alex Hormozi]

I think you do it first just to get a feel for it.

[Ben]

Sure, totally that.

[Alex Hormozi]

Because what I want to make sure that we nail is this.

[Ben]

Got it.

[Alex Hormozi]

Because we're not in it for the $5,800 thing. Right. We're in it because we want to see. I would want to see at least 50% upgrading into that.

[Ben]

Yep. Okay. Get to here and then make them.

[Alex Hormozi]

The money to pay you the next thing. And I would say the way that I operate is that I never want to ask you for money I haven't already made.

[Ben]

You got it.

[Alex Hormozi]

And you'll notice that's a common theme of how I roll.

[Ben]

Right.

[Alex Hormozi]

And so it's like, let me go make you 100 grand. We make you that with the new bar program.

[Ben]

Right.

[Alex Hormozi]

And then with the next thing, it's gonna cost you a third of what I already made you.

[Ben]

Right.

[Alex Hormozi]

So you're good. I've already made room for you to afford me.

[Ben]

Right.

[Alex Hormozi]

It's much easier sale.

[Ben]

Right. So I charge them 5,800. They're now making $9,000 a month, month over month. And like, oh look, you have $90,000 that you didn't have before. Look, you can use that on us.

[Alex Hormozi]

Right?

[Ben]

Got.

[Alex Hormozi]

And you want to make sure that you make that offer before the end of that 30 day period. So it's like you want to offer it at week two, three, again at four if you need to. And the way that I offer those things is either I'll do immediate upsells if I Don't have that. Which in this one, it doesn't make sense. So you'd have the milestone moment. So they implement it and they have their first weekend after the pricing audit and their sales are the same, or their sales go up and they're like, holy shit, I made way more money. So that would be a moment that I would immediately ask for the sale. The next one that I would have is basically like the next week, because this is a pretty short time. And then finally, if. Last chance. So you have three shots at the sale for this. Now, you were taking sales calls before.

[Ben]

Yeah.

[Alex Hormozi]

But now you're talking to a customer.

[Ben]

Yeah.

[Alex Hormozi]

And they've already delivered them value.

[Ben]

Right.

[Alex Hormozi]

Easier.

[Ben]

And they're making money.

[Alex Hormozi]

Exactly. Okay. I mean, big picture, if we're looking at this like the funnel redo on its own could very well triple the lead volume that you're getting right now.

[Ben]

Okay.

[Alex Hormozi]

Honestly, just the combination of the funnel redo, the ad call out, and having a lead magnet that actually resonates with that specific avatar, like this alone, could probably just triple just these things. This is going to dramatically improve sales velocity.

[Ben]

Sure.

[Alex Hormozi]

Let's talk about sales real quick. What do you do? Like, so what's the. Walk me through. What, like how you structure the conversation for sales. You already have something.

[Ben]

Yeah. So that's the. That this is the, like the click to close. Right.

[Alex Hormozi]

Okay.

[Ben]

Prospects, they visit the landing page. Soon to be optimized.

[Alex Hormozi]

Yes. Fill out the form.

[Ben]

Yeah, fill out the form. And that automates a text message, text message and email flow. So text message and email just. I guess if they didn't book. Yeah, it'll still. It'll still go out. They'll have the link to book, et cetera. It also triggers a call for my director of ops who's largely involved in the intake process. So she conducts an intake. This was previously for. We had this intake process in place because of low quality leads. So she would take an intake call 15 minutes. If they were qualified, she'd send them off to me. I'd conduct a discovery. Usually about 30 minutes. I talk to them about what their biggest pain points are. I ask them all the different questions about what they want to see.

[Alex Hormozi]

What percentage of them have been watching the video?

[Ben]

This new video?

[Alex Hormozi]

No, what percentage of them have been watching the video after, like when they get on the phone with you.

[Ben]

Oh, that video is new.

[Alex Hormozi]

Okay.

[Ben]

Yeah.

[Alex Hormozi]

So that's like brand new month. Okay.

[Ben]

Got it. Yeah.

[Alex Hormozi]

Well, this last month you've taken sales calls. Have any of them mentioned the video?

[Ben]

No.

[Alex Hormozi]

Okay, so they're not watching it. So this the way that I structured it here, where they're gonna have to see the video before they. Well, they'll see it and they'll have to scroll in order to get to the scheduler. Will probably increase the likelihood they actually watch it. But the other thing is that that set call.

[Ben]

Yep.

[Alex Hormozi]

So I'm gonna make this number seven set goes to then video to then close. So your director of ops is going to say, awesome. So I'm going to set you up at Ben, but before you get on, I'm going to send you this video. Make sure you watch it. And I'm just going to say do that because the first question he's going to ask you is, did you watch the video? So, and if you have it, he's just going to say, okay, I'm going to grab a coffee and you watch the video. So you're going to do it either way, so you might as well just do it now. And so, and also for you, when you hop on the call, be like, did you watch the video? If they say, no, it's like, great, watch that. And I'll be like, and the reason we do that is because I already have a lot of facts and figures and things like that that I could describe with my words. But it'll take us three times as is you just watching it. And so then that'll give us good context rather than me just spewing stuff at you, which most people are like, okay, fair enough.

[Ben]

Yeah.

[Alex Hormozi]

But you don't want me to just give you a lecture for 10 minutes. I don't want to either. This has some graphs, has some figures in it. That makes it a little bit more. More digestible for you.

[Ben]

Totally.

[Alex Hormozi]

And so, yeah, that'll be the sales process there. Propose call. And you'll be like, honestly, if you do these things at this price point, I think you'll be able to start closing like, at that point a lot. Yeah, because if we. If you were closing like 50%, which I think you could, if you're owner, operator, and you're at this point after this kind of process.

[Ben]

Right.

[Alex Hormozi]

You'll. You'll. I mean, I think you could sometimes some people, owner, operator, close like 80% of these calls. So I'm a big believer in founders selling the product in the beginning. And I think there's a number of reasons for that. One is it keeps you close to the customer. You can understand how the marketing is doing. You can see who's coming in, and that Will give you a very rapid feedback loop in terms of what you need to adjust on the front end and how you can kind of get feedback on your offer and your pricing. And it takes out one very important variable, which is that if you have a salesperson in there, you might not know if they're doing a good job. So you might be like, ah, they're not closing. What's the problem? And they might be like, I don't know, these leads suck. But like, is it a pricing issue? Is it a copy issue? Is it an avatar issue? Being closer to it, you would be like, oh no, these are the right people that we're talking to and they're just shocked at the price, or they're not shocked at the price, but they're just not getting it. And so each of those would kind of offshoot into different types of solutions. The big thing is though, I like founder selling the beginning as well. Because when you're the founder, you're the most convicted and so you will typically be able to outperform any salesperson. And in the beginning, when you have have fewer resources, you could use the extra conversion percentage and the decreased cost of not having a salesperson or paying the commission. So think I can close twice as many sales and I don't have to pay the commissions for it. It frees up cash flow so that we can make some of these big bets early on that are going to build the foundation of the business. There's so few leads that are coming in that I think he should be taking these calls basically until he can't take these calls anymore. And by the time he can't take these calls anymore, he's already completely blown past his revenue level. He'll have a whole bunch more revenue and cash flow to then solve the problem of him not having time. And that's the game. A business. With that being said, that would be like if you just did that, it would be more than a 5x in sales. Because if you get to 30% close rate would mean that you make the same revenue.

[Ben]

Right.

[Alex Hormozi]

Without your actual $30,000 back end. Right. But if you're at 50%, you're making 40% more revenue and then you still have your back end.

[Ben]

Right.

[Alex Hormozi]

One last thing is that I understand why you're not spending that much money, but you are spending too little money with the fixes that we're at now. Yeah, it would be okay to keep the spend that you have, but if I were selling a $30,000 thing, you're barely sell you're barely advertising enough to get enough volume for something of that ticket. And so for me, if I test stuff, I usually test it two times CAC per campaign. So I'm sorry, two times? Yeah, two times allowable cac, not current cac. Yeah, right, exactly. That's kind of my benchmark per campaign, though. So I might run multiple campaigns to figure out which one's working. But for you, your funnel process was messed up, and that's why this is. That's why your numbers aren't good.

[Ben]

Yeah, got it.

[Alex Hormozi]

So what I'm referencing here is that I budget two times the cash I collect from the. From a customer in 30 days when I'm testing new ads. For example, if I make $100 in profit from a customer in the first 30 days, I will let an ad go to $200 and spend before shutting it off as long as I'm getting leads. And the reason for that is usually because there's a certain amount of inefficiency in the beginning that you have to be willing to stomach to find the ads, the copy, the hooks, the creative variations that are going to ultimately perform. I have to be able to stomach bad ads that don't convert and make up for it in good ads that do convert and then be like, okay, so this is working. Not as efficiently as I want, but it's working. Now let's double down on this and make 10 more variations that are more similar to this messaging. Yeah. And once he finds the messaging that converts, it's like, by all means, blow the doors off and, you know, spend as much as you can, or at least as much as you can while being able to take all the sales calls. That's it. Like, this really fixes this. The good thing is like this. Like, you wanted to hit your triple. I make no guarantees. These are high, like, like shots.

[Ben]

Okay, that's very encouraging.

[Alex Hormozi]

Yeah, no, you've got it. And I think this is the key because also think about all the calls. You're not gonna have to take all the ones that are three calls and then don't close. Right, right. You're spending all your time on these wasted calls when it could be one call closing. 5800. 5800, 5800.

[Ben]

And so you see this as a one call close at 5800. Like discovery for sure. Discovery for sure. Oh, that's your problem. Yeah, I figured for sure. Here's the solution right here.

[Alex Hormozi]

Not even a question.

[Ben]

Yeah, got it.

[Alex Hormozi]

That's like, there. You should be expecting one. You should set that as the agenda. You'll say your, you know, the four things you have to say legally. Hey, this is X calling from Y in regards to Z. You know, by the way, this call is recorded. Before we get going, just want to say, you know, how you doing today? Great. Let me set the agenda. I'm going to go through the lead magnet thing that you just got. I'm gonna understand some of the metrics about your. About your bar. And then at the end, if it's a good fit, I can explain to you how many might be able to help you out. Sound good? Great. And then we just go through. I almost forgot because Michael wants me to do this. Oh, yeah, we could. This could be. This could be. I mean, it actually could be. Your triple could be right here. You could definitely two to three extra call outs in terms of CTRs with the AD call out. I'll bet you your conversion rate. Do you know what your conversion on your landing page is right now?

[Ben]

Like last year it was like 7%.

[Alex Hormozi]

Okay. So 7% could probably go closer to 30%, which is my benchmark for a lead mag landing page, which would be like a nice little chill 4x here. I think you going from 6% close rate to like 30 to 50% is super reasonable given the fact that you were the one who's going to be selling it and the price point is what it is. So I think in a real way, you might even make more money just selling this than you're currently doing with none of the extra work. And then all of this, this right here is just going to be gravy.

[Ben]

Yeah.

[Alex Hormozi]

So you're basically going to be able to stack potentially probably a double of your current revenue from this source, but then stack 100% of your current revenue from. How do you like this plan?

[Ben]

Love it. It's a lot of what I want to do.

[Alex Hormozi]

Oh, good.

[Ben]

And it's. I've started kind of trying to figure out if this is something that makes sense for me to do. And then obviously seeing it all on paper and coming from you gives me a level of confidence to want to do it.

[Alex Hormozi]

I would do it pretty much in this order. You're going to redo the funnel. Once the funnel's redone, technically the lead mag would happen at the same time as the funnel. So one and three happen together.

[Ben]

Yeah.

[Alex Hormozi]

Ad call outs. You then run the ads. This is basically your phone process. So this happens up front front. 4 and 6 would happen together because this is sales process. The extension happens after they buy this is also going to happen again with sales process. So basically one and three together. Two happens next, four, six, seven happen third. Then you go back to your ads guys and say, hey, go spend more. Go find more keywords. There you go. Hold on, let me, let me. It's all about the picky. Cool.

[Ben]

Cool.

[Alex Hormozi]

All right.

[Ben]

I was both very excited and very nervous to come into something like this, to really put it all out there and be vulnerable, not just in front of somebody who I have an immense amount of respect for, but also people who are going to watch this video. You guys, that was awesome getting through that, right? And I felt once it was actually done, felt amazing, right? Like, it felt great to know that I have a path forward that I can really count on. And while I know that no guarantees are there, I do know that I feel a lot better. And that's important.

[Alex Hormozi]

So. I really liked Ben's business. It's clear that he understands the the bar business well, which is one of my big requisites, like actually be good at the thing before trying to sell the thing. I think if he makes some of the changes that I outlined, it's very likely that the business does well. And I like to be clear, this is in no way a promise that you who's watching this is home. If you do this in your business, that you'll get the same results because. Because his results are completely up to him and the effort that he takes and his background, his knowledge. So your results may vary. That being said, if you enjoy this type of stuff, these business breakdowns, these cash guys episode, you'll definitely want to check out this one real quick. Guys, I have a special, special gift for you. For being loyal listeners of the podcast, Layla and I spent probably an entire quarter putting together our scaling roadmap. It's breaking scaling into 10 stages and across all eight functions of the business. So you've got market marketing, you've got sales, you've got product, you've got customer success, you've got it. You've got recruiting, hr, you've got finance. And we show the problems that emerge at every level of scale and how to graduate to the next level. It's all free and you can get it personalized to you. So it's about 30ish pages for each of the stages. Once you enter the questions, it will tell you exactly where you're at and what you need to do to grow. It's about 14 hours of stuff, but it's narrowed down so that you only have to watch the part that's relevant to you, which will probably be about 90 minutes. And so if that's at all interesting, you can go to acquisition.com roadmap R O A D map roadmap.