Day 2 From My $105M Book Launch | Ep 953

Summary

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The Game with Alex Hormozi

Episode: Day 2 From My $105M Book Launch | Ep 953
Date: September 23, 2025

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Overview

Day 2 of Alex Hormozi’s $105M Book Launch Marathon is dedicated mainly to the “Primozy Hotline”—a rapid-fire, live Q&A series with business owners from diverse industries. Alex and occasional guests (including Layla Hormozi and Sharran Srivatsaa) deliver direct, actionable solutions using frameworks from his books and content. The focus: identifying and undoing the biggest constraints to growth, profit, customer acquisition, and retention. The audience hears real bottlenecks and pragmatic, tactical solutions—likely to echo their own business challenges.

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Key Discussion Points & Insights

1. Primozy Hotline: Real Business Problems, Real Solutions

A. Inconsistent Lead Flow & New Acquisition Channels (Heather, Medical Billing)

• Issue: $190k/mo medical billing business. Semi-passive. Lead flow 100% from a podcast—unpredictable, inconsistent, priced for “whale” clients (private practices collecting $150k+/mo).
• Advice:
  • Podcast Guesting—Rely more on outbound by targeting potential customers as podcast guests.
  • Scale Frequency: “If you’re doing one a week, can you do one a day? There’s a 5X right there.” (03:37)
  • Conferences: Invest in high-visibility booths, speaking slots, and strategic giveaways to collect leads. Use value sandwiching for prize positioning—“better than a gift card, less than a Tesla.”
  • Onstage Lead Collection: Trade email list sends or slide handouts for audience contact info.
• Quote:
  • “What feels like volatility is actually a symptom of insufficient volume.” —Alex (09:42)

B. Getting Enterprise Clients in Software (Dacian, LIMS Plus)

• Issue: $250k/yr platform, 80% margin, but very few enterprise customers (hard, long sales cycle, pipeline empty).
• Advice:
  • Cold Outreach: Success came from cold calls—keep doing more (100 calls = 1 customer; “Not luck, it’s numbers”).
  • Lead Generation: Buy lead lists, scrape with software, or pay for access to group communities (LinkedIn, Reddit, etc.).
  • Positioning: Use the “waived setup fee” model—waive the $50k integration fee for annual contract commitment.
  • Travel for Sales: If a prospect is in a city, suggest you’re in town and offer an in-person meeting.
• Quote:
  • “If every time you make 100 calls you get a deal, then how do I need to game this so you just make a hundred calls every day?” —Alex (10:10)

C. Scaling Real Estate via Wholesaler Partnerships (Shemaine, Easy Dwell)

• Issue: $3M in, $500K profit, creative home sales (via LLCs) in Florida. Want to scale from 40–280 houses/year. Bottleneck: Deal acquisition, now reliant on wholesaler supply, struggles to step up.
• Advice:
  • Double Down: “You’re not even close to tapping the wholesale market for Florida…not even a blip.”
  • Exclusive Relationships: Seek to be preferred/only buyer for wholesalers. Consider acquiring wholesaler businesses.
  • Vertical Integration: Own as much of the deal flow as possible.
  • Break Limiting Beliefs: Your returns mean you can out-compete or offer exclusivity for more deals.
• Quote:
  • “What would it take to be the exclusive person to get all the deals you’re doing?” —Alex (20:57)

D. Targeting Qualified Medicare Clients (Dang, Infinity Medical Consulting)

• Issue: $5M top line, $2M profit, chronic wound care—only profitable with Medicare Part B patients, but Facebook ads generate many unqualified leads.
• Advice:
  • Funnel Filters: Add more qualification in ad copy and application (“How big is the wound?”).
  • Targeting: If 65+ almost always have Part B, target age 65+ and focus nurture/call efforts accordingly.
  • Add Friction: Only let high-potential leads book consults to avoid overwhelming sales staff.
  • Track Numbers: Know “cost per lead, close percentage, average deal size.”
• Quote:
  • “If you’re sifting through too much crap, you gotta add friction.” —Alex (29:41)

E. Commanding Arcchitecture Fees in a Price-Sensitive Niche (Zach, R2 Studios)

• Issue: Local architecture firm, 80 small-facility conversions/year, all via referrals. Frustrated by price-driven market and low-churn, but low ticket.
• Advice:
  • Win on Speed, Risk, or Ease: “Time is money…Add stats and logical proof. Make it a logical (not emotional) sale.”
  • Frame Price as Avoiding Bigger Future Costs: Use case studies, “save a dollar today, costs $4 tomorrow.”
  • Target AVL Nodes: Make referral relationships the “real customers”—focus on building partnerships with consultants, agencies, or affiliates.
  • Recurring vs. Reoccurring Revenue: Don’t obsess over subscriptions—focus on reliable referral partners.

F. Working Capital Issues in B2B Painting (Trent, Huskies Paint and Design)

• Issue: $5M top line, $500k profit, growing with GCs, but stuck due to slow A/R (collecting in 60–120+ days).
• Advice:
  • A/R Financing: “Just find a 90-day rotating credit line, show bank the deals, AR financing will fix your cash conversion.”
  • Don’t Break the Machine: 20:1 LTV:CAC machine; only cash cycle is the bottleneck.
• Quote:
  • “When I see a 20:1 machine, I don’t want to mess with anything about it, dude.” —Alex (45:13)

2. Pricing, Expansion, & Operational Questions

G. Pricing Power and Expansion (Daniel, Germany, HVAC/Heat Pumps)

• Issue: New business, grew too fast previously. Now $150k/mo, but slim margins (~13%), nervous to raise prices in competitive (subsidized) market.
• Advice:
  • Raise Prices: Eliminate discounts first; use “speed, risk reversal, or ease” as differentiators over price.
  • Pace Growth with Talent: Only expand headcount when new hires are fully productive.
  • Frame as Non-Commodity: “You’re afraid of raising prices because you believe you sell a commodity. Change the frame.”
  • Shared Decision-Making Path: Hire only once constraint is clear and solved.
• Quote:
  • “Only you are afraid to raise prices because you believe you sell a commodity.” —Alex (52:15)

H. Dominating Luxury Wedding Market (Daniel, DLE Event Group)

• Issue: $10–$30k “luxury hybrid wedding” business, wants to scale, worried price is too low for the brand.
• Advice:
  • Add a $100k+ Ultra-Luxury Option: “If you’re luxury, you don’t win on volume—you win on volume of dollars.”
  • Reframe “Luxury” to Mean Higher Price: Anchor sale on the most expensive option, “You win the whales, then everyone feels good buying #2.”
  • Filtering Leads with High-Buy Flow: Use quiz & self-qualifying VSLs; only show calendar to qualified leads.
  • Veblen Goods Principle: Being more expensive may increase demand for the right buyers.
  • Memorability as Core Value: Anchor sale around “memory contribution” to the wedding.

I. Sticking & Scaling a Dental Group (Hamza, Dentalist UK)

• Issue: Grown from $1.5M to $9.4M in one year based on Alex’s earlier advice; wants to dominate UK, open more locations.
• Advice:
  • Next Constraint is Retention: “Big businesses get big because something compounds: stick, referrals, or virality.”
  • Ready for Location #2: If $9M from one practice, open another if team can backfill talent.
  • Simplify Sales Scripts: Reduce complexity for easier rep onboarding.
  • Build a Recruiting Machine: Treat hiring salespeople like customer acquisition—with offers, ads, and funnels.
• Quote:
  • “You have to keep the people you’re selling. That’s now your mission.” —Alex (68:43)

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3. Operational, Funnel, & Offer Engineering Live Q&A (Selected Highlights)

Show-Up Rate & Funnel Frictions (Brandon, Closer for Plumbing Scaling Offer)

• Issue: Only 20% of scheduled calls show; close rate is high due to over-filtering (“If close rate is too high, show rate is the problem”).
• Advice:
  • Add Funnel Friction: It should be hard enough to book that only the serious do so. Double app—half show? 2x cost per call for 3X show, simple win.
  • Proof Checklist & VSL: Use longer form video proof so only best prospects schedule; embed “secret word” or action to prove they watched.

Directing Content Creators to Scale Efficiently (Joseph, Fit for Life Academy)

• Issue: $600k/yr weight loss coaching, strong brand/organic, wants to double leads but already devotes 15 hrs/wk to content and handles all sales.
• Advice:
  • Free Up Scripting & Research: Hire/AI for hooks research, trial reels, scripting.
  • Systemize Sales: Hire closers before turning up ad spend—create excess capacity, then scale.
  • Republish Hits: Use best-performing reels from last year for trial reels (Instagram feature that shows only to new followers).
  • Organic > Paid Until Sales Team Ready: Only layer on DM/retargeting ads after closers are set.

Scaling B2B Medical (Andy, Ocumed)

• Issue: $18M/yr, strong retention (>95%), all growth via RFPs and referrals. Needs improved marketing and money model, feels commoditized.
• Advice:
  • Win on Risk or Speed: “You win RFPs on total value—case studies beat lowest price.”
  • Insert Case Study Closers into Bids: “At the end of your RFP, throw in 1–3 case studies most similar to the potential client. Let the client do your selling.”
  • Layer Consulting as Add-On: “Offer consulting provisions in RFP for future up/cross-sell.”

Finding Product Lightening in a Bottle (Cody, StocksToTrade, $84M SaaS)

• Issue: CEO searching for “products users love before they know it exists,” already growing 50%/yr.
• Advice:
  • Don’t Break What Works: At scale, product innovation comes from stripping friction—not dreaming up “new.”
  • Loan Out All the Suck: Look at user journey—remove every point of pain, not just add whizbang features.
  • Reinvest in CAC for Growth: 10x-20x the return by reinvesting profit into growth, especially when enterprise value is based on top line.

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Notable Quotes & Memorable Moments

• “What feels like volatility is actually a symptom of insufficient volume.”
  (09:42)

• “If every time you make 100 calls you get a deal, then how do I need to game this so you just make a hundred calls every day?”
  (10:10)

• “Only you are afraid to raise prices because you believe you sell a commodity.”
  (52:15)

• “If you’re luxury, you don’t win on volume—you win on volume of dollars.”
  (57:18)

• “Case studies close RFPs. No one puts them in, and you’ll win by default.”
  (167:15)

• “You have to keep the people you’re selling. That’s now your mission.”
  (68:43)

• “You need a 30% discount to get a 50-50 split between one-time and recurring; raise it by 10% for more to choose continuity.”
  (99:24)

• “You want a product hack? Take your business, break down the 10 steps a user takes, and build product that removes 7 of them for the customer. That’s classic product innovation.”
  —Sharran (180:40)

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Timestamps for Key Segments

• [03:37] Frequency in customer acquisition (podcasts, outbound)
• [09:42] Volume vs. Luck; Cold outreach numbers game
• [20:47] Limiting beliefs & exclusive partnerships in real estate
• [29:41] Filtering leads & adding friction to save time
• [34:44] Pricing architecture services logically with proof/stats
• [45:13] A/R Financing to fix growth bottleneck in painting business
• [52:15] Courage to raise prices and avoid commodity trap
• [57:18] Luxury pricing & the “Veblen good” in event services
• [68:43] Retention as the true lever for gigantic businesses
• [167:15] Win B2B RFPs by embedding case study closes
• [180:40] Product innovation: relentless removal of user friction

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Extra Highlights

• Live Birthday: Alex helps as many businesses as possible as his "birthday present to himself."
• Rapid Fire Q&A: Calls jump from high-level strategy to tactical offer, funnel, and hiring advice—“You have five minutes, let’s go.”
• Book Launch Milestones: Celebrates volume with live calls and signed book giveaways.
• Layla Hormozi’s Operator Advice: When hiring an operator to “take over the business,” prioritize people-leadership and sales skills over technical/process strengths—“Hire someone kind but tough, organized but with sales skills.” (224:09)

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Summary Table: Business Type, Challenge, Primary Advice

| Caller | Business Type | Challenge | Alex’s Prescription | |--------|--------------|-----------|---------------------| | Heather | Medical Billing | Inconsistent leads | Podcast outbound, 5X frequency, strategic conferences | | Dacian | B2B Software | Empty pipeline | Massive cold calls, buy/scrape leads, group owner promos | | Shemaine | Real Estate Investing | Not enough deal flow | Double down wholesaler networks, vertical integration | | Dang | Wound Care | Unqualified leads | Funnel filters, friction, target 65+, application scoring | | Zach | Architecture | Price sensitivity | Frame w/ risk/speed/ease, leverage stats, referral focus | | Trent | Painting | High A/R, capital tied up | Use AR financing, don’t break your 20:1 cash machine | | Daniel (DE) | HVAC | Grew too fast, low margins | Only expand after hiring/activating, raise prices, remove discounts | | Daniel (US) | Events | Not fully owning “luxury” | Add $100K+ offer, VSL qualification, anchor high-ticket | | Hamza | Dental | Outgrown 1 location | Stickiness/retention focus, open 2nd location, sales team | | Brandon | Closing | Low call show rate | Funnel friction, proof-heavy VSLs, qualify more tightly | | Joseph | Fitness | Wants to double | Automate content tasks, hire closers ahead, best-of reels |

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Tone & Approach

Alex’s style is direct, fast-talking, friendly, and highly pragmatic. He skips theory and immediately diagnoses “the real issue” behind business slowdowns. He uses metaphors (“blip in the ocean”), pattern recognition ("I’ve heard this at every level"), and concrete action steps, always urging listeners to measure, systemize, and focus on volume and pricing power.

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For Listeners Who Haven’t Heard the Episode

If you manage or own a business—especially in B2B, services, or agency models—this episode is a gold mine of instantly applicable wisdom. You’ll hear real entrepreneurs confront the same problems you have—lead droughts, pricing fears, tight margins, slow payers, or burnt-out hires—and get concise, repeatable advice. The hotlines are also entertaining, revealing “aha” moments as Alex reframes people’s thinking—whether it’s making the first sale by numbers not luck, breaking limiting beliefs, or translating amorphous “spirituality” offers into observable outcomes.

Best Way to Listen: Jump to timestamps above for your business type, or let it play for a firehose of “pattern recognition” on business bottlenecks.

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Memorable Moment:
Layla, on hiring ‘the right’ operator:
“I want somebody kind but tough, and I want somebody organized with sales skills. That’s it. Those are the two things.” —Layla (224:09)

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End of Summary

Transcript

[Alex Hormozi]

Welcome back to the game. Today is day two of the recordings from the live launch. And so this is day two. On this day was basically a recap that in the beginning, I'm not going to play that part. We're just going to skip straight to the second half of the day, which was all primozy hotline. So this was callers that were business owners calling in from all different industries and me using the frameworks that we talk about in the books and my content to help them deconstrain their businesses and ultimately get to the next level or take the next step. And so if I could do one thing for anybody who's listening, which is you, if you could here, the specific constraint that you're dealing with gets solved for somebody else, it's super likely that that solution might also work for you or at least get you thinking about some version of that that's adjacent to it that can help you get to the next level. And so this is multiple hours of Q and A that I've taken live. They're super tight. I think it was a lot of fun. And so enjoy. All right, everyone, we are in the final hours of the, of the launch. And so at, at midnight Pacific, which is 11 hours from now, all of the, the bonuses associated with donating, donating more books will go away. And so based on all the things that you guys said, you guys enjoyed Hero Hotline. And so I'm going to be doing a lot of those, trying to get as many of you guys on the phone, help help anybody out. And beyond that, we're going to be doing some giveaways, just some free prizes give, giving stuff away. And on top of that, I think I'm gonna reading a couple of the chapters from the Lost Chapters. So inside the Money Models book, I basically put the 15 most effective model mechanisms that are in there, but I have others. And so I'll explore some of those guys with you. And I think if you're seeing this correctly, there should be some milestones that we'll try and hit along the way to close this out as we ride into the sunset. And then I retreat back to, you know, Willy Wonka's factory. And then in the next two years, trying to put something else really cool together for you guys. All right, so first up, we're Talking to Heather Nat Natural Rev, M.D. all right, let's, let's give her a call. Let's see what Heather's up to, shall we? Hey, Heather, what's going on?

[Layla Hormozi]

Hi, how are you?

[Alex Hormozi]

Good. So you've got five minutes. Tell me what's the biggest. What can I help? Like what's revenue right now? What's profit? How can I help?

[Caller]

All right, sounds good.

So I'm a physician by background, own.

[Layla Hormozi]

A medical billing company, started from scratch.

[Caller]

Have 190,000 per month for gross and.

[Layla Hormozi]

Then we're at 25% net profit.

[Caller]

I do this on a somewhat semi passive model, meaning I've got an executive.

[Layla Hormozi]

Team that runs day to day ops.

[Alex Hormozi]

Okay, what's headcount?

[Caller]

Biggest things.

[Layla Hormozi]

Say that again.

[Alex Hormozi]

What's headcount?

[Layla Hormozi]

So seven W2s and then the rest are contractors that we, that we have. So maybe 65 total.

[Alex Hormozi]

Okay, got it. All right, so what's the. Where do you want to get to and what's. What's holding back?

[Layla Hormozi]

So leads are biggest issue. So I've not done other than my podcast, which has been 100% what we've done for marketing.

[Caller]

I've not done ads. I've not done really cold outreach. Like Nothing.

[Layla Hormozi]

It's podcast 100%.

[Caller]

Okay.

[Layla Hormozi]

But leads are inconsistent.

[Caller]

Like it's the Easter salmon. You know, it's, it's.

[Layla Hormozi]

Yeah.

[Caller]

So it's. I don't know if I, you know, obviously I can continue to podcast and that's worked. Yeah, I guess I show up on.

[Layla Hormozi]

Other people's podcasts, all the things.

[Alex Hormozi]

Yeah.

[Layla Hormozi]

But do I start another acquisition channel or do I just keep doing.

[Alex Hormozi]

How many podcasts a week are you doing?

[Caller]

I've done 110.

[Alex Hormozi]

No. Per week.

[Caller]

Oh, one.

[Alex Hormozi]

One. Okay. So an easy one is to combine outbound with your podcast and invite people who would be potential customers or whales onto your podcast. You'll have super high response and show rates and talk to them about their business.

[Layla Hormozi]

Sorry, I do a little bit of that, but maybe I should be doing more.

[Alex Hormozi]

Well, yeah, if you're doing one a week, it's not a lot. Right. So yeah, I'd be doing like can we do like one a day and say, well there's a 5X. It's like that's just that. Okay, all right. So that's like, I think about like least operational change possible that we already know doing something that actually works. So that's thing one. Beyond that, give. What's the avatar of who you're going.

[Layla Hormozi]

After for medical billing, private practice facility. You know, really we want their collection to be, you know, greater than, you know, 150, 200K a month.

[Alex Hormozi]

Okay.

[Layla Hormozi]

And that's been the other problem is.

[Caller]

In the very beginning.

[Layla Hormozi]

Right. Small clients, small fish.

[Alex Hormozi]

Yeah.

[Layla Hormozi]

That has improved where we've gotten bigger fish over the time, but. But yeah, getting the right avatar or getting the right client in the door.

[Alex Hormozi]

Yeah. So I think conferences are going to be really good for you because I said the way that I would set this up is you go to the conferences, I would pay for the booth if you can get on stage, even if you have to pay for it. And one of the benefits of this is that when you. I go, I try to get the first one as you turn right into whatever the area is, because 70% of people turn right. And so typically organizers price them all the same by size, but you'll get more ROI from on the right hand right by the door, number one. Number two, I would create some sort of giveaway for people to, like, win that you'll reveal on the second or third day of the event. And then by doing that, you'll get like. They basically have to give their contact information in order to enter the giveaway. And if you want, you can model the way I did it. Like, it's better than this and it's less than that. So it just gives a little bit of sandwich of value of like, okay, it's, you know, better than ft, less than a bitcoin, it's better than, you know, better than a gift card, less than a Tesla. Like, I like to have some sort of sandwich of up, up and down value in terms of the giveaway. And so the whole time you're collecting leads, and if you want, Tron talked about this yesterday, but if you, you can say, hey, I have a $25,000 speaking fee instead of the speaking fee, one of two things you can do. So one is, can I send one email to the list? That's an option. And then secondarily, you can, when you do your, you know, your presentation, your slides or whatever, you can say, hey, if you want these slides, like, Joe, like, just give me your email and I'll send them to you. And then you can just basically ask two or three more questions and then it'll sort out the traffic of the people from the audience who are the most engaged. And so I think if you, if lead flow is the number one issue, then that gives you two things. So one is you 5x your podcast and using outbound to get more of the quote whales. And that's going to be super targeted. And then from a speaking perspective, that's three different ways that you can monetize the conferences. So getting the list, survey closing from stage, and then also having a giveaway at your booth that's bigger and better than everyone else's, so you can collect leads that way, too. Awesome.

[Caller]

Done.

[Layla Hormozi]

I can do all of that. Thank you.

[Alex Hormozi]

Rock and roll, Heather. Enjoy.

[Layla Hormozi]

Appreciate it.

[Caller]

All right, thanks so much, Alex.

[Alex Hormozi]

Happy birthday. All right, thank you. Bye.

[Layla Hormozi]

Bye.

[Alex Hormozi]

So as my birthday present to myself, I'm gonna help as many business owners as I possibly can. All right, so that's the goal for the day. That's what we're doing. For those of you who are hopping on, we're closing out the book donation drive. I've got all these. All these prizes and bonuses for anybody donates over 200 books. But they all disappear at midnight Pacific. So if you're like. I don't know if I should. Like, if you're one of those last minute people, this is now the last minute. Beyond that, though, I'm just calling people as they come through. And the 800, basically people donate the most books. I'm trying to call as many of them as I possibly can. That's what we're doing right now. All right, so we got Dacian. Floria. All right, let's see what Dacian's up to. 80% margins. Wonder what this is. Dacian. What is LIMS Plus?

[Caller]

Well, it's an environmental testing platform for environmental testing lab.

[Alex Hormozi]

Thank you.

[Caller]

And thank you for doing this as a gift.

[Alex Hormozi]

You bet, man. Come on. Okay, so 200. Well, thank you for donating books, which I super appreciate. All right, you got five minutes. So let's rock and roll. So you have a testing platform. Got it. You're running 80% margins, which is super, super impressive. What's the issue right now? What are you trying to get to?

[Caller]

I try to make money. The only problem or the biggest problem I have right now is that I have this software platform targeting B2B labs, like their enterprise. They have, like, usually two to three people or maybe more that I have to talk with to get a deal done.

[Alex Hormozi]

Yeah, that's normal.

[Caller]

Usually the deal size. The deal size starts at 50k up front, and then it can go to like 100k.

[Alex Hormozi]

Yeah.

[Caller]

And I go into annual recurring revenue of 50k, usually.

[Alex Hormozi]

Cool. Okay.

[Caller]

The problem I have is that I don't have anybody in the pipeline and I don't know how to get them in.

[Alex Hormozi]

Yeah, you're like, I've got this great business. There's no one. No one's buying it. So is it 250k a month or 250k a year? Right now that you're at a year a Year. Okay, got it. So you're really not getting that many clients if that's your price point. Okay, understood. So what did you do to get these? What did you do to get these first clients?

[Caller]

So first client was luck via cold call.

[Alex Hormozi]

Okay.

[Caller]

And the second client was same cold call. And the third one was trade show. So I have three customers right now.

[Alex Hormozi]

Okay, heard. Okay, so you've got cold call, trade show, and what was the other one?

[Caller]

Cold call as well.

[Alex Hormozi]

Okay, so how many cold calls did it take to get you the one deal?

[Caller]

Well, it was a while ago, probably around 100. But it was luck.

[Alex Hormozi]

I mean, dude, that's how it works. You did. I mean, you're like, I did 100 and then one of them bought. It's luck. It's like, no, you did 100. Like, if you called one and one of them bought, that would be luck. If you call 101 of them bought, that's just a process. So let me ask you this way. So I've said this before, but it's super common for sub a million, which is that what feels like volatility is actually a symptom of insufficient volume, meaning you're not doing enough, which is what makes it feel erratic. And so it's like you did 100 and you got one, and then you did other cold calls and you got the other. Right?

[Caller]

Yeah.

[Alex Hormozi]

Okay, so how many cold calls did it take you to get the second one?

[Caller]

Probably around the same.

[Alex Hormozi]

Okay, so that sounds lucky, though. The second one sounds lucky. The first hundred, you get one. You know that. You know what I'm saying here? You made 200 calls, you got two customers. So the question then becomes, what stops us from doing 10,000 calls?

[Caller]

Well, one would be that you need leads. I'm not that good at call.

[Alex Hormozi]

Well, dude, you got one, dude. 1% conversion on cold calls, by the way. Fine. Totally fine. On a 50k, 100k price point, totally fine. Do you think of it like this? You're making 500 a dial.

[Caller]

Yeah.

[Alex Hormozi]

Yeah, that's. That's pretty good for a dial. I don't know about you. If I want to go out to dinner tonight, I'll be like, okay, I'll make one dial. There we go. I covered my dinner, right? Of course you have to think of it because you've got in your head about this. Like, if every time you make 100 calls, you get it, you get a deal. Then it's like, how? Well, how do I need to game this for you so that you just make a Hundred. A hundred calls every day. Okay, so what you have, we have 60 seconds. So what's the thing that's holding you back from just saying like, yes, that makes sense.

[Caller]

Well, that makes sense, but I don't know how to get myself leads.

[Alex Hormozi]

Okay, right. Then that's the leads list.

[Caller]

The second problem is how do I position myself of what attraction offer can I create? So it makes sense for these guys.

[Alex Hormozi]

Well, for a bigger company, for what? You have a waived fee structure, which is the third fee structure that I talk about inside of the continuity section for money models, which is you have a big upfront nut. We say, hey, it's $50,000 for me to do this whole integration, and then it's $5,000 a month, month to month. Right. It's like. Or if you want to commit, I'll waive the $50,000, but you got to commit to the whole year.

[Caller]

Yeah, but anyway, you do that because all their data is in our system.

[Alex Hormozi]

Right. Well, the thing is. But you're just. No, no, dude, I get it. The way that a money model works from a positioning perspective is that you don't. Like, whenever you give someone a choice, it doesn't mean that you're saying you actually give them the choice. You give the illusion of choice that then obviously selects or waits for one of the selections. So basically the question that you had is, how do I get more of these people to sign up? How do I make it more compelling for them? Well, if they think that they're getting something that costs $50,000 to set up for free, they're far more likely to do it than just saying, why do that anyways? Just like, yeah, no shit. But the problem is that they don't know that. You know what I'm saying?

[Caller]

Yeah, makes sense.

[Alex Hormozi]

Okay, so I'll give you.

[Caller]

Let me put this into an ad or something.

[Alex Hormozi]

No, I think. I actually don't know. This is more for the mechanics of how you actually close when you get into the thing with them. But let's solve the original issue really quickly. We are over. So I'm going to just make this as fast as I can. They got to get to the next person. Okay, so number one is, I would say list brokers. You can do that. Number two is you can scrape using software. Number three is that you can go to people who own groups or communities. That. And there always are some. You just look, there's some on school, there's some LinkedIn, there's Reddit, whatever, right? There's definitely communities for these people. And then you want to pay the group owner to basically make an ad inside of the group. Those are three different places that you can look like right now to go get leads. Okay, cool. Also highly recommend flying out there and saying, hey, it's. You know, you find out that they're in California, you know, like in Los Angeles, you say, hey, it's so crazy. I'm actually in LA this week. I figured there might be. I'm happy to. Happy to swing by while I'm in town. And if they say yes, then you just fly there. Okay. That's how that works. Yeah. Rock and roll, man. Appreciate you. Thank you for donating bookstation. Oh, thank you. I appreciate it. All right, bye. All right, next up, we got Shemaine. All right, Shemaine. Here we go. Easy Dwell. So I think this is. I'm guessing this is like a home. Like dwellings. Dwellings. That sounds. That sounds legit. Shemaine.

[Caller]

Hey, what's up, Alex?

[Alex Hormozi]

What's up, dude? Oh, honor's mine, man. Did I say your name right? Chemain.

[Layla Hormozi]

Yeah, that's right.

[Alex Hormozi]

Okay. Rock and roll. Okay, so you're doing 3 million, top line. What is Easy Dwell? Easy Dwell.

[Caller]

We're out here to change the way people buy homes. We sell them in an llc, like a business that owns the house instead of, like, traditional financing.

[Alex Hormozi]

Okay, got it. So you're doing 3 million, top line. $5 million. Sorry, $500,000 in profit. What's the. What's the. What's the constraint? And we. We have four and a half minutes left. So what's the constraint right now?

[Caller]

Right now there's a team of about 20 of us.

[Alex Hormozi]

Okay.

[Caller]

And so I'm getting into, like, the acquiring and training leaders. Our goal is to do 280 houses. So we've done, in the last two years, 46 acquisitions. We've sold 30 of those. But we're scaling up dispo. Dispo, where we sell the properties is really how we. I think, can get our. Our CAC up on that. A bunch of stuff, I guess. I mean, I'm trying to get to 280 in a year so we can iterate quickly enough, you know, launching an investment fund of 18 million.

[Alex Hormozi]

Are you. So are you wholesaling?

[Caller]

Yeah. No, not wholesaling.

So we'll.

It's like a fund and an operations company. So we buy properties, sell properties, and we raise capital. But we've also, like, structured it on our own model.

[Alex Hormozi]

Dude, I'm so confused. Walk me through how you make money.

[Caller]

Okay, so let's say you have like a 2% rate loan or your retired landlord, your seller, finance, you're just doing.

[Alex Hormozi]

Like sub twos or they're transferring the mortgages.

[Caller]

You can run cash for. Right now we're leveraging sub twos because of capital constraints. So buy a Property. Average cost 25k.

[Alex Hormozi]

Okay.

[Caller]

Pay the operations 25k. Holding cost, marketing, et. Average deal cost is 65k.

[Alex Hormozi]

Okay.

[Caller]

We'll sell a property to a buyer. Average time on market right now about 90 days.

[Alex Hormozi]

Okay.

[Caller]

We want to get that down to 45, collect 25k up front, and then about 800 cash flow for the next 30 to 40 years. So our. We're not, we're not a three to one. Yeah, yeah, but we're like 60 cash on cash at the fund level, at the total level. And then let's say we take that 25k. We do that twice now we can buy another deal so we can cycle those funds back in. So trying to build a compounding machine with a lot of like stickiness.

[Alex Hormozi]

So what do you need? You need what, $18 million?

[Caller]

Well, we need to be able to acquire more properties.

[Alex Hormozi]

So you need capital to acquire more properties.

[Caller]

We know the capital we have.

[Alex Hormozi]

Okay, so you just don't have enough deals.

[Caller]

Yeah, not enough deal flow. On acquisitions now.

[Alex Hormozi]

Got it. What are you doing right now to get.

[Caller]

It was sales. Now it's acquisitions.

[Alex Hormozi]

Okay. Hurt. So what are you doing right now to get. To get deals?

[Caller]

Just wholesalers. Like wholesalers in the state of Florida.

[Alex Hormozi]

Facebook groups.

[Caller]

And we've been doing it for a year, so we know a lot of the people.

[Alex Hormozi]

Yeah, yeah.

[Caller]

But we've had some team. There's a lack of like leadership over there right now, which I may need to kind of jump back into.

[Alex Hormozi]

Yeah. Okay, so what stops you from just like basically instead of buying from wholesalers, just learning how to wholesale.

[Caller]

We started out wholesaling.

[Alex Hormozi]

Okay.

[Caller]

And it was. We were doing. We pull all the pre foreclosures.

[Alex Hormozi]

We do.

[Caller]

No cold calling. It was just, it became way more leverage to just go to the wholesalers who had already negotiated on those, buy from them.

[Alex Hormozi]

So. So then, yeah, all I. So if I'm you, I'd be thinking, what are the wholesale networks and associations that I can get into so that I can just say, like, I'm a guaranteed buyer for all of this stuff. Because it sounds like you have a pretty good return on capital. You're getting 60% cash on cash returns is phenomenal. Right?

[Caller]

Yeah.

[Alex Hormozi]

So I'm just. Basically, you can outspend if you have that kind of return, even if you got 50% cash on cash, you could still, you know, you'd still be probably pretty happy if it meant you could double the amount of deals you did, right?

[Caller]

Yeah. So we've. Part of the problem, like, we've. We joined, like, some of those groups, and we've, like, there's a site where all the wholesalers post their deals on Facebook, and we've quite literally scraped, like, all of them. It's almost a lead problem at that point, where now we're shifting to look at portfolios. Like, hey, who owns 170 homes? Who owns 200?

[Alex Hormozi]

I understand. Yeah. But my thing is, is that you've only done 40. You did 40 deals in the last two years, something like that.

[Caller]

42.

[Layla Hormozi]

Yeah.

[Alex Hormozi]

I mean, you're not even close to tapping the wholesale market for the state of Florida. You know what I mean? You're not even close. There's no, like, you're not even close. It's, like, not. You're, like, not even a blip on the radar. Like, I just want to break your belief around this. Like, you're not like, oh, I've. I've. I'm in every single one of these. It's like, dude, you're doing $3 million a year wholesaling. You're not. You're not even close. Like, a single franchisee for some of the wholesale franchises that exist, average $3 million a year per location.

[Caller]

Right. A lot of that's cash, though. No.

[Alex Hormozi]

What?

[Caller]

I'm not trying to protect my limiting belief here.

[Alex Hormozi]

Yeah, no, no, you're not even close to it. I, like, there's zero way. No chance. Not like, not even in a million years. You're not even close.

[Caller]

Okay.

[Alex Hormozi]

If you're like, I'm doing 200 million a year in Florida, I'd be like, okay, he's one of the bigger players. Like, you're not even close. Okay, so let's just, like, blow through that right now. I do think that you revisiting the idea of, like, if I'm you and I want the fastest way to grow this, I'm going to find the biggest wholesalers and see if I can bring them in house. Because they're just giving you what they're giving you, not what they have. Yeah, right. They sell to other people. So it's like, I want to bring, like, again, I like to control the whole funnel. Right. I want to say, like, how do I go from click to close? How do I own the whole thing? Because, like, If I, if I could be vertically integrated here and I can bring someone in or acquire like you have the cash. If I can acquire a wholesaler who has a good amount of volume, then it's like I have a way better monetization vehicle than they do. And so then it's like I buy something into cash flows and then I just have another way to make even more on it. And so it's like that business works on its own with mine. It just juices. And I love. That's the game. Those are the games I like to play.

[Caller]

Yeah, right? Juicy games.

[Alex Hormozi]

Yes, juicy games. Big juicy games. I gotta call the next person, but hopefully does that, like first off, belief broke it. Like you are not even close. Not even close. Yeah. Okay.

[Caller]

Yeah.

[Alex Hormozi]

And then number two, it's like, what would it take? And this is the question that I would ask them. What would it take to be exclusive person to get all of the deals that you're doing? I would ask that as like, if I had to make money tomorrow before even doing anything complex, I'd call every single person I did deal with over the last year and say, what would it take? Okay, cool. And you've got the returns, man. If you, if you go from 60% to 50 or 45, all of a sudden you have exclusive pipeline and that triples your pipeline. Then there you go. Yeah.

[Caller]

I appreciate you. Thank you.

[Alex Hormozi]

Appreciate you, man. Thanks for donating books. All right, all right, all right. So anyone hopping on. I'm just calling all the people who donated the most books. So we have a bunch of 800 book donors. And so I am calling them. And this is in spirit of the final countdown. I think we're at 10 hours and 10 hours and plus 10, 1040. Yeah, a little less than 11 hours. And we're going, we're marching on. All of these bonuses disappear for anyone who donates 200 more books. All that stuff disappears in 10 and change hours. All right? So if you are a last minute person, this is the last minute. All right? Ding Duong. All right, calm down. All right, calm down, guys. Let's not get carried away, all right? Infinity Medical Consulting. Infinity Medical Consulting. Dang. Duong. What's up, man?

[Caller]

Hey.

Hey, Alex. Happy birthday. Thank you again for your time and helping us with our constraints.

[Alex Hormozi]

I really appreciate it. You bet, man. Thank you for donating a ton of books. All right, so you got 5 million top line, you got 2 million in profit. Okay, what's the, what are we, what are we working with here? We've got medical Consulting. What's holding you back?

[Caller]

Yeah, so essentially we are dealing in the space of chronic wounds. So we help folks with chronic wounds close their wounds. So the largest constraint that we have is trying to hone down on our specific avatar in terms of the actual patients. Because the LTV is. Once it's closed, it's closed. There's no more LTV afterwards. So we're trying to do Facebook ad leads that actually constraints it to Medicare Part B. That's the specific insurance that we're able to accept to provide the service for the patient.

[Alex Hormozi]

Okay.

[Caller]

But I don't know how to essentially filter out so we can have that specific avatar in terms of Medicare Part B.

[Alex Hormozi]

Okay, well, what does the application say and what does the ad copy say?

[Caller]

So essentially we are here to help with hard wounds. I think it's very generic and we're trying to refine it and then essentially provide a PDF so that it's a layman so folks can understand the wounds that they're having and seeing if they could help themselves during the times when they don't get treatments from services that does standard.

[Alex Hormozi]

But you make money from Medicare Plan B, right? Or that. That's what you just said, right?

[Caller]

Yes.

[Alex Hormozi]

Okay. Yes, yes. But. So you just want the like. Not from a u. Not from a humanitarian perspective. So I'm just purely talking business here. The point for you is that you want to get as many Plan B people as possible, right?

[Caller]

Exactly.

[Alex Hormozi]

Okay, Exactly. So you're trying to get as many plan. And right now you're getting. You're doing Facebook ads and you're. And you're getting some people that are not plan B, right? Yeah. Okay, so before we even like fix that, I want to understand, is it really a problem or is this a feature? So let me explain right now. How much. How much is it costing you to get one of these people versus what you make on them?

[Caller]

So it's costing roughly, on average, about $15 per acquisition of a lead.

[Alex Hormozi]

All right.

[Caller]

And. And so it is a range based on the wound size. So if it's a one by one centimeter, it's just less of a payout than compared to if you have a big check anti one that's 100cm. So if we can refine the wound size and then the qualification. Because the only payout that we receive is Medicare Part B. Yeah. That's why there's so many different insurances. We can't take any of those.

[Alex Hormozi]

I'm getting. I totally hear where you're coming from. It costs you 15 bucks a lead. Like we just. The way, the way you have to grow this is like you're making it sound special snowflakey to you, and I think that's why it's making it confusing. But fundamentally, it's just like it cost me 15, 15 bucks a lead. One out of ten leads is going to be a qualified person who's plan B and has a big enough wound. Right. It was like we just have to know this, this math. That's it. It cost me $15 a lead. I convert one out of 10 leads. So it cost me $150 to our customer. Each customer is worth this on average. Even though there's variability, it cost me. This is what I make on average. So do you know, do you know those three? I know you know the lead cost, but what about the other two numbers? What percentage leads you close and what the average deal size is?

[Caller]

Yeah, it's pretty low. I mean, we've had five treatments out of the 1,000 leads.

[Alex Hormozi]

That sounds bad. Okay. How are you making sure. Yeah, yeah. How are you. So the funnel right now is that they're just opting into a PDF, right?

[Caller]

Yep, yep. Consultation call afterwards.

[Alex Hormozi]

So it automatically takes them to a consultation call or in the PDF it says if you have these things, then do a consultation call.

[Caller]

So essentially once they provide their email, their name and phone number, they receive the PDF and then the next kind of landing page is book a consultation call for wound care.

[Alex Hormozi]

Okay, so you've got name. So I'm writing this on the board, so maybe if you're watching the live stream, you can see it. All right, so you got your, you've got your opt in thing for the PDF. Okay, cool. And then they put name, phone and then email, right? Something like that.

[Caller]

Yep, yep.

[Alex Hormozi]

Email, whatever. And then, and then if their stuff is qualified or everyone goes and sees the scheduler.

[Caller]

Yeah, everyone does this season schedule.

[Alex Hormozi]

And are you taking all these calls with all this trash?

[Caller]

Yeah, yeah.

[Alex Hormozi]

That's horrible. Me and one other.

[Caller]

Yeah, one.

Another one other rep. Yeah. Yeah.

[Alex Hormozi]

Okay. And then, and then you're just running lead ads, what, nationally?

[Caller]

No, specific to the areas where we have providers that can provide the service.

[Alex Hormozi]

Okay, got it.

[Caller]

A city, state, location, heard.

[Alex Hormozi]

Okay, so big picture here. I think I'm going to bet that there's an ad copy issue. Like how many people know that they have plan B or not.

[Caller]

The thing is, they're also not educated to know since they can, once they're 65 and older, they automatically have a Medicare part B.

[Alex Hormozi]

Well, dude, then why don't you just advertise to everyone who's over 65 and older?

[Caller]

We do.

We do 65 and older, but they still have other insurances. They could kind of opt into other Medicare Advantage plans.

[Alex Hormozi]

Yeah, yeah, but they all have plan B if they're over 60, 65. Right. So they do qualify to use your stuff.

[Caller]

Yeah, so, but once they hit 65, they also have the option to choose other more affordable Medicare medical insurance plans. So that's where the. The challenging.

[Alex Hormozi]

So you're trying to find people who are not over 65.

[Caller]

We are trying to find folks that are over 65. Even though they qualify, like, automatically at 65, they do have the option to do more affordable options.

[Alex Hormozi]

I got.

[Caller]

It's a hard part.

[Alex Hormozi]

I hear you. I hear you. Let me. I hear you. So let me. I want to. I want to help because I also want. I got to. I got to make through the. The next. The donor. Okay, so big picture, right now, you're taking too many calls that are trash. There's definitely diamonds in there. And so we have to add filters to the funnel. And so the filters that we have to add is the copy itself. Now, if you say they have no idea, then we're going to have to do what are the other things that they have in common. Now, to your point, you said everybody above 65 has this, but they have other stuff too. For me, that just sounds like a sales call. So if, you know, 100% of people over 65 have the thing, then to me, I'm like, well, then why would I focus on anyone else? Because then I'm just going to try and have the max hit rate, knowing that every single person in the phone with can. Can. Can do this thing. Because now all I have left is, do you have a wound? And are you ready to say yes? So if I'm you, my targeting is going to change to 65. Plus. I would also make the messaging change on the opt in page. So to just reinforce that. And then you have your. Yeah, and then the. The. The application part, I would add in how big is the wound? And then that way you can score the leads. And if you. And like, even with that level of lead flow, maybe that be. That's enough filtering. If it's not enough filtering and still getting trash, I would then start scoring them and only showing the scheduler to the people who have wound sizes above X. All right, that's how. That's the first thing that I would do and think through it all Right. Appreciate you, dude. Congrats on the business now. You bet. I mean, dude, you're doing 2 million profit. 5 million. Top line. Like you're. I mean, you're not suffering right now. All right, but if you're being inefficient, then we have to add friction. That's fundamentally it. Like if you're sifting through too much crap, you gotta add friction. Yeah.

[Caller]

Gotcha.

No, I appreciate that.

[Alex Hormozi]

You bet. Awesome, man. Talk soon. Thanks for donating books. All right.

[Caller]

Thank you.

Of course.

[Alex Hormozi]

Absolutely. All right. Rock and roll. We rocking. And we rolling. All right, dude, I'm checking boxes right now. Okay. Zack Reinders. So Zach Reinders, R2 Studios Architecture. This sounds interesting. All right, so anybody who's tuning in, it's. I said I'll say it again later. Okay, so Zach renders. I'm calling the people who donated 800 bucks as fast as I can. That's what I'm doing. Just so you guys are curious. That's what I'm doing. I'm doing five minutes apiece. This is Zach. Zach, we've got five minutes on Hermozi hotline, and I want to help you with the business. So the timer has begun? You bet, dude. The timer has begun. Okay, so talk to me. What's. Yeah, what are we looking at?

[Caller]

Okay, so I'm actually in a client meeting. I'm stepping out right now.

[Alex Hormozi]

It's only five minutes. You can tell them that.

[Caller]

Perfect.

[Alex Hormozi]

Okay.

[Caller]

We own a local architecture firm.

[Alex Hormozi]

Okay.

[Caller]

Soda.

[Alex Hormozi]

Got it.

[Caller]

We niche down unintentionally, but it's worked to our favor. We only do assisted living facilities that are converting. So it's people that are taking a single family home with five or less bedrooms and converting it to an assisted living facility. They need to get licensed architecture plans from the state or for the state. So that's where we came in. Our problem is really cheap.

[Alex Hormozi]

Well, we actually.

[Caller]

We do 80 of those just off of referrals every year.

[Alex Hormozi]

Okay.

[Caller]

So it's pretty solid where it just sustains itself by our service.

[Alex Hormozi]

Can I. Can I make a guess at what you need to do? Because I. Pattern recognition. Like, I promise you. Okay, so you're in it. You're in a space that it's. It's super price driven.

[Caller]

Right.

[Alex Hormozi]

Because you've got. It's construction. They're looking at cost, blah, blah, blah, blah. Right? Yep. Okay. You have three vectors of winning. You have to pick one. Ideally you can have more than one, but one is what I like to lead with. So you either got speed You've got risk or you've got ease. Right. And so in your business, time is money. If you can do things faster. Right. There's also a risk component of like, what kind of costs are going to come down the road if you do it the wrong way or do it differently. And then it's like, is there a way that we can throw some sort of verbiage or guarantees or some sort of like clawbacks that a customer can get where we say, listen, we'll put our skin in the game to make sure that we'll be on time and on budget so that you can build your thing faster so you can get faster returns on capital. Because I'm assuming these like you quote, sell to an investor or you sell to a gc.

[Caller]

So they're all, they're individual business owners. That's the hard part is we're going to small business owners. It's likely their first business. Right. So they're cheap too.

[Alex Hormozi]

Okay. I mean, who are the best. Who are the best business owners that you deal with?

[Caller]

People that don't question the price, that understand the process. Yeah.

[Alex Hormozi]

My favorite. Right?

[Caller]

Yeah, exactly.

[Alex Hormozi]

No, but it's not. Okay. Stops us from getting only those people or focusing almost exclusively. Like, can we get deal flow that has higher percentage of those people so we can command the prices we want? Oh, I would love that.

[Caller]

And part of it is I've tried to expand so that we give one faster speed, like you mentioned, so we get our plans back to you within a week.

[Alex Hormozi]

Yeah.

[Caller]

So that's faster than most everyone.

[Alex Hormozi]

Yeah.

[Caller]

And then we on the back end, no one understands the process. So I've learned it really well. So that's where I come in and I can give them that guidance versus just someone that's giving them a commodity of just a single plan.

[Alex Hormozi]

Yeah.

[Caller]

So that's where we've been able to get our price up some, but I need to get it up higher.

[Alex Hormozi]

So I'm wondering if you need stats. Dude, I'm telling you right now, you need stats. So this is a logical sale. Right. This is not an emotional, you know, thing for most of these guys, I would imagine. Right. This is a pure, like dollars and cents thing. And so you need to line up and come in with that frame, which is like, listen, let's be clear here. You and I are both business people. You need to make this make sense, you know, make sense from a dollars and cents. They're going to say, yes. It's like, cool. So there's a concept called, you know, Save a dollar today, cost you four tomorrow, or pay two today and it saves you four tomorrow? Which one are you? Like, would you rather pay two and save four or pay one and have it cost you four? And they're like, well, obviously to save one, it's like, right, I would like to establish that. Because if someone says, no, I'd rather just save as little as possible, then we all know that's not going to work for either of us. Right? Okay, cool. So then it's like, this is where the stats come in. Like, I'd look at Statista, I'd ask, you know, GPT. I'd be like, hey, find me all the stats of average unforeseen costs that can occur. And so then now we took the frame of the fact that it's just going to be a logical sale. We're all dollars and cents here. But the reality is now we go fear, uncertainty and doubt, right? So now it's like, well, these are the top four things that occur. This occurs in 22% of circumstances. This occurs in 15. This occurs in 38. Right. And these are all the different things that can go wrong. Right? And so what we've done is that we try to minimize this thing, which is going to cost you one way more money than what I cost. And so now we're anchor. Anchoring around all these way more expensive things. And then basically, that's how we can basically nudge our way into a completely different price because we've changed the context around the conversation.

[Caller]

Okay, would you think about any way to get recurring revenue or would you just double down on this and try to get as many people as possible?

[Alex Hormozi]

So the only way that I would see recurring revenue in your specific business is going to be people who do regular business more so than like subscription, anything like that. It's more like, who are the nodes of referrals? Those are my quote, reoccurring more than recurring business like Coca Cola. Super amazing business. Not recurring, but reoccurring. And so I put your hat on. So what you need to do is chunk up in terms of how you think through your business. I'll give you an example. So when I had Allen, which is a software company, we had, you know, the first thing we did is we went to market for small business owners, right? And that sucked because they'd be like, oh, this is great. It works our leads, but we don't have any leads. And I was like, oh, darn that I didn't think through that. And so then all of a sudden, the people who did really well were the ones who already had agencies that were working with them generating leads. And then our thing just did the lead flow. So then all of a sudden I was like, okay, well I'm going to go after agency owners and say, hey, we can improve the results of your, your services and decrease churn and increase, you know, like basically make more money, etc. Using our software. And so all of a sudden what happened is instead of having, you know, trying to go onesie twosie after business owners, we just went after agency owners. And I knew that let's say a chiropractor agency comes in, he only does ch. He comes in and he pays, you know, he onboards his 50 clients at a time. And I was like, oh, that was fucking great, right? And for you, it's like somebody might have a portfolio, but he onboards 50 clients. But then after that, I could rely on the fact that 10 of his people would turn every month and then he would sign 10 more up every month. Right? And so he. So our churn at the agency level was almost zero. Our churn at the SMB level was whatever the churn of the agency was, which is not really our issue. And so when we redefined our business as, oh, we're actually in the agency servicing business, not in the SMB servicing business, that's when it really started stacking. And so translating this back to you, you said you've got these referrals that are coming in, right?

[Caller]

Yeah, we typically get three to four referrals every week that we'll then try to book.

[Alex Hormozi]

Amazing. And so then I'll bet you you have a list, or hopefully you do, of all the top refers that refer you business, right?

[Caller]

100%.

[Alex Hormozi]

Right. And so then the whole, the whole paradigm around this for me is how do I, how do I partner with the referral partner so that they can frame the conversation with their introduction to me, me in the way that maximizes the likelihood of a close and the framing around pricing that I want, okay? That's how I approach this. And so your business, if I'm thinking through this, right, like if I'm you, my business is I'm really in those centers of influence, right? Those affiliate partners, those referral partners that you have, those are the quote customers. And so I want to see like, what's my sales guy for those guys to get them to consistently, you know, bring me more in and how can I acquire more of them? Because each one of them is a node that over the years, if I Go from having a base of 20 guys who refer me business to 200 that becomes reoccurring by nature rather than recurring, but still stable.

[Caller]

Suggestion on our referral bonus for those people.

[Alex Hormozi]

Are you allowed to do kickbacks legally?

[Caller]

I think so.

[Alex Hormozi]

Okay, great. Well, if you're allowed to do. Double check, yeah. If you're able to do kickbacks legally, there's, there's three different affiliate structures that I like. Like you'll immediately, I'll say all three of them and you'll, you'll know which one's right for you. So version one is that you peel off some element of your particular service, a very small element, and then you allow them to sell it for whatever, whatever they want. They keep all the money. And then you deliver on that as step one of a multi step process. That's V1. So an example of that is, hey, new business owner gets an LLC set up. We'll do the LLC set up. You can charge whatever you want for that. Let's say they sell for $300. We do the LLC set up, but then we upsell tax and bookkeeping right from there. But they keep 100% of the upfront. That's option one. Option two is that they just straight up sell your thing. Right. And then they get to keep whatever percentage. Right. They keep. You give them 10% or 20% or whatever number makes sense for you for them to actually just legit, you know, cradle, grave. All they got to do is just acquire the business and then just send it to you. Then you deliver. That's the second. Right. And then the third is more of a, more of a lead gen version of this. Right. Which is kind of what you're doing right now, it sounds like. And then you can quote, give them kickbacks later. And that's. And then they basically factor it in to how much every three referrals I send, I get, you know, one sale or whatever.

[Caller]

A lot of ours come from consultants.

[Alex Hormozi]

That are on the actual application, dude, 100%, then consult. Like you need to basically build out like, think of this like you need a customer journey for the consultants.

[Caller]

Okay.

[Alex Hormozi]

Like, and then that's. Yes, exactly. And then they're the ones who are going to consistently be sending you business month over month over month. Okay, Got it.

[Caller]

Yeah. Thank you so much, dude.

[Alex Hormozi]

You bet. I know you got, you got your guy. I went over five minutes, so I'm so sorry. But hopefully you're good.

[Caller]

Thank you so much. I appreciate it, dude.

[Alex Hormozi]

You bet. Thanks for donating books.

[Caller]

Yeah, absolutely.

[Alex Hormozi]

All Right.

[Layla Hormozi]

Later, man.

[Alex Hormozi]

All right. You guys digging this? Is this cool? This is fun. El senor Chatissimo. Yeah, you got extra value. Albert Supers farm. Love it. Okay, cool. Yeah. Day three. I know. Well, it's really, like, hours. Geez, I'm loose. The phone. Hours. 10 and a half until close. All right, we're closing this thing down as a team. We started together, we're ending together. All right. Starting is one. Finishing is one. All right, so that was. Who was that? That was Mr. Reinders. So now we're going to go, Trent, Husky Huskies, paint and design. All right, so we're gonna talk paint and design. This will be fun. I know. We're rocking and rolling. This is great. Buy all three of his books. Awesome. What's up, Trent? Trent, you're up, dude.

[Caller]

Hey, how's it going?

[Alex Hormozi]

Good, man. All right, so we got paint. We got five minutes, and let's rock and roll, man. So you got. Was it a 5 million top on. What did I see here? You got paint, paint, paint, paint, paint. Okay. Five million top line, 500,000 profit. Yes, sir.

[Caller]

That's me. Yep, that's me. Yep.

[Alex Hormozi]

All right. Rock and roll, man. Okay, so what is the. Like, what do you want and what's. What's holding you back?

[Caller]

Yeah, so I've been at this for seven years now. I got 40 people on staff.

[Alex Hormozi]

Congrats.

[Caller]

Thank you. So my issue is I'm kind of at a. At a fork in the road. I started off doing residential repaints. That was my bread and butter. I did that for years. And then I actually went to one of your conferences, and you guys talking about reoccurring revenue. You talk about LTV to cac. Yeah, once I saw that, I went there to learn Facebook ads with my agenda. You taught me that. Completely pivoted. I was like, holy cow, I should go after gcs. Well, that was almost a year and a half ago now. So now that I. Now that I double down on gcs, it's like every time I land one, it stacks. Okay. But the. The downside to it is, is that the gross profit is less. But the advantage of it is that the LTV to CAC is insane.

[Alex Hormozi]

Through the roof.

[Caller]

Yeah. So.

[Alex Hormozi]

So it.

[Caller]

So it's like, what do I do? Because my GP on repaints is 52, but I pay a salesman 7%, and it cost me another 5% market, and that's 12%. So when you wash it, it's 40% GP to GP. If you take away the CAC, you see what I'm saying. So I've been doubling down on it, but then here's the next thing is that. So since I did that, I was like, okay, I'm going to go full force. I hired a, hired a virtual assistant who just does my takeoffs so I can produce way more. I could bid way more jobs way faster. This whole, this whole year, I have three salesmen selling repaints. They've, they've sold about 2.8 million. I'm already at 2.6 million by myself with a takeoff guy assistant.

[Alex Hormozi]

Yeah.

[Caller]

And so I'm already doubling down on it, but I just won't. I like, am I making the right decision here? Because they are way harder to produce is the hard thing. Like, like most people get their ass kicked in new construction. They go bankrupt. The AR is crazy. My average pay per time right now is 65 days, but it gets up to 91 20. So it's very capital intensive and it's a way harder business model to run. Do you think I'm making the right decision?

[Alex Hormozi]

Well, thank you for the context. So when you said you were getting 20 to 1, were you talking revenue or gross profit?

[Caller]

Gross profit, yeah.

[Alex Hormozi]

So you still make way more on the contract on the gps.

[Layla Hormozi]

So what do you mean by that?

[Caller]

Will you explain to me?

[Alex Hormozi]

No. So you said you're going after these bigger deals because they're recurring, the GCs, the general contractors, right?

[Caller]

Yes, sir.

[Alex Hormozi]

And the issue there is just that. It's really just that the pay cycle is extended. So it just costs more cash for. Basically you have to float cash for a period. That's the biggest problem. Okay. So there's. So I'll give you like the simple, the simplest answer here, and I'll tell you a story to illustrate this. So there's a company that I was looking at investing in, and it was a couple years back and they were at like 2 million bucks a year and they had $4 million in debt and it was just a mess. And I ended up not doing the deal. And one of the big issues was that they had, they had bad terms for payment as a physical products business. And what they ended up doing is finding a manufacturer that gave them net 90 terms. So they basically fronted them the inventory and then give them 90 days to pay them back. Which is amazing. Right. It's literally the opposite situation that you're in. And the result of that is that within 18 months they went to 5 million a month.

[Caller]

Holy cow.

[Alex Hormozi]

Right? And so my point here is that there's. We could look at model, but I lean towards this. This is, this is far more likely to be a financing solution. Like we could do all sorts of crazy things, but like realistically you probably just find a 90 day rotating credit line at a bank and just show them what your financials are and what percentage of deals you collect on. And basically you just have to show them diligence that you, when, when you say, hey, I've got this, this money coming in, it's just called AR financing. And so by doing that you can accelerate the cash flow cycle and basically eliminate that as long obviously you gotta be responsible with it because you got to pay it back when you, when you get it. But that capital tends to be very cheap because it's, it's basically, you know, it's somewhat secured. Technically it's not secured, but it's secured by your ar.

[Caller]

So it's like a line of credit.

[Alex Hormozi]

Yes, exactly. And then that, that solves the cash flow issues.

[Caller]

Yeah, because that's, that's by far the biggest issue. Like my AR routinely sits at 500, $600,000.

[Layla Hormozi]

It's crazy, right?

[Alex Hormozi]

And so if you could pull that down, you could just like, okay, great, I have this here. And then that way. And usually, usually those, those are around a percent a month that they'll hold. And so very easily, like you can find a percent, you know what I mean? Just like you could raise the price by percent and get it back.

[Caller]

Genius.

[Alex Hormozi]

Yeah, that's. I don't want to mess with anything else. It sounds like the, what you found when you came here worked. So I'm happy about that. And now you have a 20 to 1 machine. Like when I see a 21 machine, I don't want to mess with anything about it, dude. And so the only issue you have is a cash conversion cycle issue. And because you're in a space where financing exists for this problem, I just say like, let's just go pursue that. That's the first thing I would do.

[Caller]

That is genius. Thank you so much. I'm telling you because like, whenever I was there, I had that epiphany. And like you guys, you guys were passing around the mic and I was raising my hand, I was like, please just tell me this is right. And I, and I didn't get to ask. I was like, I'm just fucking going for it. Excuse my language.

[Alex Hormozi]

No, you're good, man. Well, I appreciate you donating 100 bucks and you know, honestly, thank you so much for me. And from the entrepreneurs that you donate.

[Caller]

Books to, Happy birthday. Thank you so much. I really appreciate you.

[Alex Hormozi]

You bet. Thanks, Rhett. All right, bye. Okay, now we're going. Is that cool? That's exciting, right? That's kind of fun. Yeah. This, like, honestly, guys, I could literally do this all day. Well, you will see. I really. I just, like. I love business. It's, like, the only thing that I really enjoy. It's, like, the only thing I drive Joy from. So, yeah, I would do it for free. And here we are, and I'm doing it. If you donate books. So. Daniel Mueller, next up. Sounds German. All right, let's see what this. Heismuller. All right, let's see. It's four, nine. I'm guessing he's German. Like, actually German. Not just, like, his ethnicity, but I think his country of origin. What's up? Are you. Are we in Germany?

[Caller]

Yeah, we're in Germany.

[Alex Hormozi]

I guessed it. I guessed it. Okay, talk to me about the business. What's Heinz Mueller? All right, so we have five minutes, too. Just want to give you a heads up. We have five minutes just to give you a heads up. Okay, go for it.

[Caller]

Great. Thank you. I just started a business for four months ago, and I. The first business I had a little bit of, like, I grew too fast.

[Alex Hormozi]

Okay.

[Caller]

And I had various issues.

[Alex Hormozi]

Okay.

[Caller]

And so now I'm. I'm, like, wondering how you could, like, decide when to grow and, like, when to. When and what systems to grow first. Yeah.

[Alex Hormozi]

Yes. Really good question. So first off, off the bat, I don't know what went wrong when you said you grew too fast, but my guess is that you. So one of the sayings I have is that you can't really over expand, but you can under talent, meaning the people that you brought in when you were, quote, growing too quickly were just insufficiently skilled. And as a result, things started breaking and falling through the cracks.

[Caller]

So I went to the VAM last year.

[Alex Hormozi]

Yeah.

[Caller]

I think the issue was we identified as, like, I went over my skis.

[Alex Hormozi]

Yeah.

[Caller]

Yeah, that's good use, Chris.

[Alex Hormozi]

Yeah. Basically, you were spread too thin. And you can be spread too thin because you don't have enough support from good enough teammates. And if I say anything you don't understand because I talk fast, just correct me. All right? Just, you know, hold me back. But right now, the speed of your. I'll talk a little. Sorry. So the speed of your expansion should be correlated with the speed of your ability to acquire talent. So the speed of your ability to get good people into your business to hire them. And so the reason that it felt like you were over expanding is because you had no help.

[Caller]

That makes sense.

[Alex Hormozi]

Okay. So if that's, if that was the situation, I would then look at my calendar. Basically the follow up question is do you have the cash flow to pay somebody what's required to get the help you need to expand the business currently? Do you?

[Caller]

I do. Like, so right now I hired my first sales rep starting next month.

[Alex Hormozi]

Okay.

[Caller]

And I'm doing 150k revenue like this month and I have like 25k profit.

[Alex Hormozi]

Okay. It's a little low.

[Caller]

I don't know like if it's a.

[Alex Hormozi]

Service business.

[Caller]

I do it's like an H VAC company and we specialized on heat pumps.

[Alex Hormozi]

Yeah, heard. So I think that especially if you're a niche service like that, niche home service especially, or commercial service, you probably, this is me just guessing, you're probably also a little mispriced. So I'll bet that you do need to raise your prices because if you're running 150 top line, 22,000 bottom line, you're running what, like 13% margins or something like that, right?

[Caller]

Yeah.

[Alex Hormozi]

Right. And so for me, a home service business, especially if it's niche, like for me I would say 30 is going to be where I'm like my kind of like minimum target for just, I would say like if you were just, just H vac. Right. But if you're like I specialize in heating pumps specifically, I would expand that even further to like you could, if, if run well, this business could run 50% plus margins.

[Caller]

So it's like a very competitive market in Germany because it's very like.

[Alex Hormozi]

No, I know, I know.

[Caller]

Subsidized.

[Alex Hormozi]

Yes. Yeah, no, I hear you. But the, the. Okay, so I'm just going to put a pause here for a second. I'll ask the original question again, which is do you have the cash flow in order to hire the help? You said you're hiring a salesperson, right? That's coming in?

[Caller]

Yes.

[Alex Hormozi]

So in order to make sure that you don't grow too fast, what you have to do is that when that new salesperson comes in before saying, okay, now I'm going to hire the next person, we have to make sure that that salesperson becomes productive. So the speed of your expansion is going to be the speed of your ability to onboard and activate teammates. So just like you activate a customer like you say, okay, you know, they have to go through this journey and then they get a good result, they're happy. Like you have that journey. We Basically need to think through your expansion from the employee perspective of how do I activate the employees so they don't have to think about them as much. You go from training to managing once they're managed and they're consistently generating revenue for you, especially because it's sales. Right. Then at that point I'd say, okay, now you can take your eye and then put it to the next constraint of the business. But it sounds like acquisition was taking a lot of your time. And so you hired the salesperson which said, you know, that's fine, that makes sense. I would look, do you give any discounts at all? Do you give discounts when you sell people? Yeah, or anything like that.

[Caller]

But I don't know how to use it.

[Alex Hormozi]

No, no, I don't want you to. I was going to say, if you don't want to raise your price, at least eliminate your discounts.

[Caller]

All right.

[Alex Hormozi]

Yeah, okay. No, because you're at, you're at 15% margins and if you're giving, you know, let's call it 10% discounts or 15% discounts, giving half your profit away. And so if you feel uncomfortable about raising the price, then what I would do is say eliminate discounts and then add speed or add risk free. So it's like, okay, so if you buy today, we'll do it faster. If you buy today, I'll guarantee this rather that if you buy today you can pay less. Does that make sense?

[Caller]

Yeah, it makes sense.

[Alex Hormozi]

That's what I would approach to try and get a little bit more premium on your pricing. So that because like, dude, your margins are so low that even 5 10% jumps is like 60% increases in your actual take home.

[Caller]

I'm kind of afraid that if I raise price, I don't sell well.

[Alex Hormozi]

Everyone's always afraid of that. That's why no one does it.

[Caller]

Yeah, but I guess I do it now.

[Alex Hormozi]

Yes. Again, you have to focus on. The thing is, is you only you are afraid of raising prices because you believe that you sell a commodity. If you and someone else do what, what the prospect believes to be the same thing, then they will choose the lower one for sure. No question there. So the question is, how do we get them to not perceive them the same thing? Which is why the first chapters of the offers book is like, it's an apple and orange issue. Right? You're selling a commodity. And so we have to get you to not sell a commodity. Which means that we have to either add speed, we have to add ease, we have to make it more risk Free for them. So that they say, okay, good. Fast and cheap. Pick two. This guy is cheap and he's fast. But the thing is that it's not really cheap because you have to pay twice as much because I'm gonna have to fix it and it's gonna cost you way more and it's gonna take you longer. So which one do you really want? Right. So it's like you have to break the frames to reframe the conversation.

[Caller]

Got it.

[Alex Hormozi]

Cool. And again, sometimes that frame even. Sorry, go ahead.

[Caller]

So I raise prices and then I hire for the next constraint and I only hire the next person when the person I already hired is like fully on board.

[Alex Hormozi]

Yes. All right. You nailed it.

[Caller]

Thank you.

[Alex Hormozi]

No, you bet. Thank you, man. Good luck with the business. Congratulations. And you are in a niche, man. I bet, like, I'll bet you have the pricing power. I'm just telling you, man. All right, I gotta jump to the next call. I appreciate you donating books, man. Thank you so much.

[Caller]

Thank you.

[Alex Hormozi]

All right, bye. All right, dude, I'm telling you guys, pricing like the biggest lever by far on your ability to generate profit. It's like a three, I think PC said this two days ago. Patrick Campbell, he's one of the speakers at the the launch. They did a huge meta analysis of this. It has a 3 or 4x stronger influence on profit than any other thing you can do, which is you could keep customers longer, which is amazing. You could get more customers, also amazing. But the thing that's going to generate by far the most take home increase, if you were to proportionally increase each of them, pricing is going to be way, way, way more. And so nailing pricing and being willing to experiment and do that with different prospects that are coming in and try new pricing structures out again. Models is about monetization in general. But the, the bonus is, by the way, the entire profit system, which is the, the last column on our, on the Playbooks, which is the Fast Chat, Fast Fast Cash playbook, the pricing Playbook, and the Price raise playbook. Those three Playbooks basically walk through the process of what does it look like to actually raise prices? How do you do it without fancy analytics? And then, and then there's 10 optimizations of just like, how do I position this in a way that changes how they perceive the price so that it allows me to charge 50% more? Right. If you're like, well, both of these are apples, it's like, yeah, of course the customer is going to go for the cheaper apple. I would too. So Would you. And so it's like, well, I need this to be a banana. And then say, okay, well what are we really looking for? Do you need fruit or just need vitamin C? Because in fact, I can give you a vitamin. Vitamin C, IV drip. Right. And then the. And it's 500 times the price. But because we're trying to figure out, do we have to sell a fruit or is it like a totally different way that we're trying to solve the problem? All right, so that's how I'm thinking through. Next one up we've got is Daniel. We have two Daniels in a row. What do you know? Daniel Linares, DLE event group. Oh, events. Fun. I know something about that. Something about events. Little bit. Run an event or two in my day. No, Raven, the Playbooks won't be available later. They end in 10 hours and then they're gone. The offer's gone forever. Yes, sir. Oh, thanks, dude. I appreciate it. Thank you for donating 800 bucks. So talk to me about the event, the event business. We got five minutes and I want to. I want to get as much. I want to give you as much as I can.

[Caller]

Totally, totally. So we do a luxury kind of unique blue ocean. We're trying to dominate this category.

[Alex Hormozi]

Okay.

[Caller]

For luxury wedding entertainment. It's not live bands, it's not a live dj. It's this kind of combination group.

[Alex Hormozi]

Dude, I love that industry.

[Caller]

Starting to know it's called the hybrid DJ band.

[Alex Hormozi]

Kind of. Okay.

[Caller]

Now there's not high search volume, but we do get exact match people searching for us.

[Alex Hormozi]

Yeah.

[Caller]

A lot of times they are our right fit. And we are closing, you know, people in that kind of 10 to 30k price point range.

[Alex Hormozi]

Dude, I love it. Actually, actually, you said the hybrid dj, whatever. That's like feature jargon. Like I. As somebody who. Well, I'm not. I'm past. I'm not past wedding age. Sorry. But like, but like the. When you said luxury wedding entertainment that I'm. I mean, I'm a luxury buyer. Right. That struck a chord. To be fair though, the price sounded cheap. For what it sounds what I. What I would imagine because luxury to me denotes significantly more expensive. Just aside note.

[Caller]

True, true. I mean, honestly, there's, you know, for the ultra 1%, we're the downsell to the extra 1%.

[Alex Hormozi]

Yeah, yeah.

[Caller]

So there's still headroom for us to ascend.

[Alex Hormozi]

Do you have 100k option?

[Caller]

We don't.

[Alex Hormozi]

Okay, can we do something right now? Like right now add $100,000 option? Because if you're in the luxury space, you don't win on volume. You win on volume of dollars. Right. Not volume of transactions. And so if you're doing all the work and the positioning of being luxury, then we have to capitalize on the sole benefit of luxury is that you can have super sky high prices. And if done well, which I think you will, it's a veblen good. Meaning the more you raise the price for the right buyer, the more they want it, not the less they want it.

[Caller]

So everybody finds us, they're like, man, your brand is like the five star four Seasons. You're my pre conversion dude.

[Alex Hormozi]

I will bet you right now that you're like this is, this is not a promise to any who's watching or listening. But if I were to bet, I would bet that if you were to double or maybe even triple your prices, you will close at a higher percentage. Because 10 to 30k doesn't sound luxury to me. Man. I wouldn't even believe it. It's incongruent with the messaging.

[Caller]

I mean the, the luxury, you know, 300k, 500k flowers.

[Alex Hormozi]

That's what I'm saying. Like you're like, dude, the. And so I mean my. If I'm you. Right. My sales pitch and do you have a VSL before you talk to these people?

[Caller]

I just made one. Okay, great call to our zoom call.

Yes.

And now have a. Here's our stuff.

[Alex Hormozi]

Are you running ads?

[Caller]

Only Google Ads. A4A7X return on ad spend. But we're not doing anything on Facebook on social.

[Alex Hormozi]

Amazing. Is it, is it a pure opt in?

[Caller]

Yep.

Request a quote after they've dabbled on our site. Pure opt in.

[Alex Hormozi]

Okay, dude, so let me, let me just, let me just. I'm going to cut through. Like, let me just, let me, let me love you. Okay, so this is what, this is what I would. If I'm you. I had to transport brains and like this. I have to take over the business tomorrow. The opt in would not be request for quote. That's like the lowest converting thing that you can do. All right. Instead I would have it be a questionnaire about the wedding. Right. So and it make it seem like it's like, oh, that way we can tell you the exact perfect type of, you know, entertainment experience for a luxury wedding that would match your style wedding, blah blah, blah, blah. Right. So they answer five, six, seven questions, whatever. Then on the thank you page they either if they have a budget that's high enough, they get shifted straight to the calendar. Where they can have the call, or if they're not, then you just send them to PDF or something like that, right? So if they are qualified, they go to the call, okay? Now if at that point you have the booking, then you nurture them by sending them the VSL before the call. And then you put a secret word in there that says, hey, would you rather us watch it together? Would you rather watch it on your own? All right, everybody's gonna say, oh, I'd rather watch it on my own. Which is great. But now they committed to watching it, which is the point. And if for some reason they forget to watch it, then you've already set the seed so that you're like, oh, do you get a chance to watch the thing which, if you put a secret word inside of it saying, hey, by the way, just so we're prepared, tell us the headcount of your wedding. Just text the person who texted you this back. And so you should get numbers that are like 50, 195, whatever. But then that way you know they actually watched it, right? And so then when you hop on the call, you reconfirm they watched it. And then the first however many minutes, if they didn't, you say, hey, no worries, I'm going to grab a coffee, go watch this video. And then you'll pick back up, right? Just as an easy way to make sure that every single person is pre framed properly for the call. Now, the contents of that vsl, I know you already filmed it, but the content of vsl, the way I would think about it would be how basically I want to, I want to break frame here. It's like, okay, so what do you think people remember the most about the wedding, right? And again, I would look at statistics, I'd look at surveys, I would do whatever I could to try and have like the thing that people remember the most is this. The thing that people spend the most on is this. And so no one remembers where they had chicken or steak. No one. But what they do remember is how good of a time it was. That's where memories are made. And so we should be spending our money in proportion to, to the memorability or the basically the memory contribution size of each dollar, right? And so this would be the frame that I would enter the conversation with. And so if they're spending 500,000 on flowers, no one remembers the flowers. Everyone remember what the entertainment was.

[Caller]

It's really good, man.

[Alex Hormozi]

That's the frame. And then you can start selling 100,000, 150,000. Dude, your luxury, like we're luxury. Let's go. Luke's right. Let's make, let's feel it and just.

[Caller]

Continue to be messaging wise, you know more and more unique as, as we do it.

[Alex Hormozi]

Yes. And so I would again, I mean I said put 100k offer up there but like 100k I think is probably where you is going to become your bread and butter. Just being real like you need a 250,000. Like dude, if you're luxury, luxury weddings you've got a bridezilla and dad's paying and he's a, you know a hedge fund manager. He doesn't give a.

[Caller]

Damn. Mind blown brother.

[Alex Hormozi]

Yeah. As a luxury consumer like let me tell you they will spend. They just want the best and right now your price is actually I, I honestly think are hurting you. 10k for a wedding is like the napkins.

[Caller]

We get so many people that don't flinch. Right. And Right.

[Alex Hormozi]

What's your close rate? Yeah. What's your closure right now?

[Caller]

Close rate. You know we, we meet with 10, we probably close I think like 20% at it. So like about a 20 close rate. Of booked calls.

[Alex Hormozi]

Yeah. Of book calls. Okay.

[Caller]

Calls.

[Alex Hormozi]

Well how many of those would you say you cancel? Because they're just not qualified.

[Caller]

They cancel themselves.

[Alex Hormozi]

Okay.

[Caller]

Our automation shows them our pricing in advance.

[Alex Hormozi]

Yeah.

[Caller]

They'll set up a meeting and then they'll cancel it.

[Alex Hormozi]

It's like oh yeah, that's the thing. So it's what I started with. Like that's where we have the question flow rather than you know, request an invoice. It's like no, like take our perfect entertainment quiz. Perfect match entertainment quiz. They go through it and then it automatically sorts them so they don't even see your calendar. You don't have to waste your time with it.

[Caller]

Right.

Filter them out.

[Alex Hormozi]

What percentage of the calls that you take do you close? Not of called. Not of scheduled.

[Caller]

How many do we take that are actually like. You mean our show up rate?

[Alex Hormozi]

Yeah, well yeah. Showed calls that you make an offer to of the offered people. What percentage close.

[Caller]

Of the offered people. What percentage close? Probably 20, 25%. About 25%.

[Alex Hormozi]

Oh. So the vast majority don't cancel their call. They don't.

[Caller]

We get a 90% show of the people that.

[Alex Hormozi]

Yeah.

[Caller]

You know that you know get on our calendar.

[Alex Hormozi]

So the way that I framed it is what that needs to be reflected in that vsl. It needs to be reinforced at the beginning of the call. You should be anchoring around $255,000 expenses so that when you say your price, it'll seem like way better. And I think that you start with 100k and you really do like go for the 100k. And if you want. So obviously you just got a bunch of books. But the anchor upsell, which is the, in the upsell attraction mechanisms, the way to really, really juice it, if you want to get nasty with it, is that you present the 100k offer. All right, that's now your new offer. Okay? Just, I don't want you to like wrap your head around that. 100k is the offer. But your, your, your core offer right now, which is your 30, right? Let's make it 35, because that's the same thing anyways. So make it 35. But what you're going to do is you're going to look at the 100k and you say of these things, what one thing is just really specific that most people don't particularly need, except for somebody who's a super baller, but everyone else is really happy with nine out of these 10 things. And so what you do is you have the 100k thing and then some people just say, yeah, I want the best thing done. They don't even care anything. They just say yes at 100. If they say no, then you say, oh, you know what? Well, do you care a lot about where the DJ was born? I'm just giving it a stupid example. But they're like, oh, no, I don't care about where the DJ was born. And you're like, oh, well, we have this other thing that's $35,000 because some people really care about that. But if you don't care about that, then this is 35. And it gets, I think, a lot of the things that you wanted and they're like, oh, yeah, because when you do an anchor upsell properly, right, the first thing is like, you want to get the whales and you want. You got to commit to it. You can't just like toss it up and then be like, oh, you don't want that. And then start selling the other thing. You have to truly sell 100k. You got to commit. And they have to really consider it. Otherwise anchors don't work. If they really consider it, then they're already starting to justify why it would be worth $100,000. And then when you just say, cool, well, this thing's 90% similar and it's one third the price, then they're like, oh, done. Yeah, yeah, yeah. And so now all of a sudden everybody's buying your most expensive one at your current most expensive one, and maybe 10% or 20% by your 100K. And if I'm right, 30% are buying your 100K. And just by doing that, we doubled LTV.

[Caller]

Thank you, brother. I know you spent some extra time with me, man.

[Alex Hormozi]

You're good. I want to help.

[Caller]

Happy birthday, man.

Congrats with everything.

[Alex Hormozi]

Well, I appreciate you. If I make you more money, you donate more books, you help more people, we save the world. Everybody's happy.

[Caller]

Yeah, brother. Thank you so much.

[Alex Hormozi]

You bet. All right. Good luck. All right. All right. That was fun, right? I know. That was more than. Oh, we got a. We got a. Oh, we hit a. We hit a milestone. Okay. 3.28. So we just hit a milestone. Oh, geez. All right, let's. Let's rock and roll. Sweet. Okay, so I got a call. Okay, so who am I? Who do I. Who's hooking me up with a number? Ed, are you sending me numbers? We'll do it in a second. Okay, I'll call one more, and then we're calling single book buyers. All right, hold on. So I'm going to call one. I'm going to call an 800 buyer who's coming in. All right? Ed, text me another 800 buyer. All right. Hamza Sullivan. Okay, so you just. You got 800 books, and so I'm going to help you make more money. Not a promise, of course. Your results will vary. Results are not typical. Hamza, we got. We got five minutes, brother. Talk to me. What's. You're the dentalist. You're doing 9 million top line. 3 million in profit. Right?

[Caller]

That's right. That's right.

[Alex Hormozi]

All right. Nine million. Three million bottom.

[Caller]

Okay, that's correct. So happy birthday, brother.

[Alex Hormozi]

Thanks.

[Caller]

Congratulations on the biggest and wildest book launch the world. Everything. I took the advice against Vegas. We were doing around, I think, a million and a half. And then the advice it gave me was to do more, more, more of the same. And we ended up here at 9.4.

[Alex Hormozi]

So you went from one and a half million to 9.4 million from some advice. That sounds like it was a good return.

[Caller]

And I remember what you said to me, you need to do more ads, spend more time in the day doing ads, get more creative.

[Alex Hormozi]

Yeah, yeah, yeah. I remember. I remember, I remember, I remember. Yeah, yeah, yeah.

[Caller]

So that's. Anyway, so ever since then, I've just. I've been watching every single moment, every little piece I could get from you. But this moment here, now, is Where I want to understand exactly how do we take it to, to the next level?

[Alex Hormozi]

Okay.

[Caller]

How do we dominate the UK dental market? Because we're hungry. We're all locked in, in the team. Everyone's motivated, everyone's got good momentum.

[Alex Hormozi]

It's going to come down to stick. I'm going to tell you right now. It's going to come down to stick.

[Caller]

Okay.

[Alex Hormozi]

Like you figured out the first part which is why you just 7x or whatever the number is 6x, right. You 6x in a year following the do more advice. And you still need to keep doing that volume. I want to be clear. But the thing is really, tremendously large businesses get really, really big 95% of the time because of one thing which is that they have. Well, not 95, 100% of the time they have one thing which is a compounding big. So they have something that compounds onto itself. And so virality for example is compounding. Right. And so brand itself is a compounding vehicle media. Because people tell other people who tell other people who tell other people and then that's how a brand compounds. That's one way. Now, given the nature of your business, you're not going to have a viral. I don't think. Right. You know, I don't think you're going to be like the. I'll just leave it there. The main. Yeah, you're B2B a high ticket service. Like that's not the, that's not your game. But the key is going to be how do we make sure that dentists never leave. That is now your mission. Because if you did whatever $9 million in sales this year because you were at one and a half last year. Right. So you pretty much did almost all that growth this year. Right. So the key is if over the next five years you did no more acquisition, but every year you do $10 million a year in sales. Right. It's just that next year you're at 20 and then the year after that you're at 30 and the year after that you're at 40 and your margin is disproportionately growing because you don't have a huge amount of. Of opex that. That's the game we need to get to now. That's your next level.

[Caller]

But how do we do that, Alex? Because right now I'm getting. I can see the pressure on the sales team. Yeah, I can see that the kind of not listening in a way as well. And it's hard to I guess managing sales team when there's more Ad spend. I want to spend more. I want to spend.

[Alex Hormozi]

Well, I don't think the answer spend more. Right now, the answer was spend more. When you came, that was the answer. Right now, the answer is not spend more. The answer right now is you have to keep. You have to keep the people you're selling. You have to keep delivering on them. You have to keep them happy. You have to reduce churn.

[Caller]

Alex, at what point do we do. I know that it's a sign now to move into a different location and then aggressively scale locations. And as a dental group, like, that's also something on my mind, which I don't ask.

[Alex Hormozi]

Wait, is this out of four walls right now that you got the nine. The nine million?

[Caller]

Yeah.

[Alex Hormozi]

Oh, badass. No. Okay.

[Caller]

Yeah, we've got one more room available.

[Alex Hormozi]

Okay. Heard. Hurt. Hurt. No, I think you're actually. Now that I understand that last piece. Yeah. You're ready to open a second location using the same model.

[Caller]

You're good.

Okay.

[Alex Hormozi]

I'm glad. I'm glad. Glad we got there. So. So we still. We have. We have 55 seconds to spare. But that. That's. Yeah. Sorry, I. I misunderstood. Yes. 100% four walls. You need to add another four walls. I go across town so that you don't. You have as little crossover as possible with the ads. And the thing that you have to be careful of is backfilling the. The talent who's required to, you know, start, you know, pop off that. That next one.

[Caller]

With the sales team. Just some advice there, Alex, like, how do I get a solid sales team here to handle inquiries and make sure no show rate doesn't go through the roof? Because that's what I'm.

[Alex Hormozi]

Well, did you just got. So follow the lead, nurture. The lead nurture playbook that the mail. Right. Like, literally follow that to a T number one before you do anything. That's number one. And then from a closing perspective, one of the key parts, and this for everyone who's watching too, is that the more I've studied sales, I feel like it's like the midwit meme. I don't know if you've seen that. It's like, you know, really, you know, just. Just ask more times and, you know, don't. Don't bother them. And then at the. You know, then there's all these, like, tone and pacing and blah, blah, blah. And then at the end, it's just like, just ask more times and no bother people. That's really what it comes down to. And so basically, we need to have a very straightforward script that anybody can learn. And so it's. How can we decrease the complexity of the sale? Remove as many variables as possible so that there's. So it's easier to onboard and train reps and grade them. Because the more complexity it is, the longer it takes to train them, the longer it takes to onboard them, then the harder it is to basically manage their performance. When it's like you have five questions to ask, and you ask them in this way and you ask them in this order, it makes it significantly easier for somebody who's not as skilled to still succeed. And that makes a better business model rather than have a business that requires exceptional salespeople to succeed. Okay, but in terms of how do you find salespeople? Like, it's the same for every business. You're gonna have to recruit hard, and you want to think about your acquisition channel for getting salespeople the same as you think about your acquisition channel for getting customers. Same concept. You're going to advertise, you're going to have an offer, you're going to work the leads, you're going to interview. Just like a sale. Same. Same. It's just that that is now becoming the constraint of the business is that you need more salespeople so that you can open the next location, which then can, you know, double the business or whatever. Okay, I got it.

[Caller]

Yeah. Follow.

The best ethical thrive that you've had.

[Layla Hormozi]

TikTok.

[Alex Hormozi]

TikTok. What? Lily just walked in. No, I think the. It's more that you want to demonstrate that you've done some level of personalization for the prospect that makes them want to get that value. So it's less about bribing them, like the term itself. It's more like, what does someone like that really want? It might be something that gets them out of pain or something that absolutely guarantees that this is going to actually solve it for them, but we want to show that. Okay. I appreciate you, man. Congratulations on your success this year.

[Caller]

Thank you. Thank you.

[Alex Hormozi]

All right. You bet. All right, bye. All right, we have the great. The great Layla, the one that the myth. The legend. Legend. Extra legends. Ways better. The legendary Layla. The legendary Layla's in the house. And so we're doing. So we're doing. This is our special edition because we just hit.

[Layla Hormozi]

We're just going to call single book buyers.

[Alex Hormozi]

That's what. Yeah, right. That's the. That's the. We just hit the milestone. Okay.

[Layla Hormozi]

Yes.

[Alex Hormozi]

So we're called single book buyers. Okay. So do we have. Am I Getting. Am I getting some?

[Layla Hormozi]

Yeah. So they're texted to you.

[Alex Hormozi]

Oh, there we go. Okay, great. So, Brandon Spry. You're watching. We're calling. We'll see. Brandon, you just bought a book. And so that was. We hit this milestone, and so we're. We're going. Brandon, we're on the live.

[Layla Hormozi]

Hi, Brandon.

[Alex Hormozi]

You bought a book. You donated a book. Thank you.

[Layla Hormozi]

We appreciate you.

[Alex Hormozi]

Yeah.

[Caller]

Oh, my God. I was just watching the live.

[Alex Hormozi]

Did you stop watching seconds ago?

[Layla Hormozi]

Seconds ago.

[Alex Hormozi]

Oh, I lost you. I lost you on the dentist. That's what did it.

[Caller]

Yeah, that's just. Well, if you want proof, you just wanted to open a new location.

[Alex Hormozi]

Yeah. Oh, yeah.

[Caller]

There you go. No, I love it. Oh, my gosh. Well, really great to meet you, man.

[Alex Hormozi]

Well, appreciate it. How can. How can we help? We got. We got. We got a minute or two. Let's do it. How can we help?

[Caller]

Yeah, let's do it. So I'm a closer. I'm gonna bore you with that, but I'm really trying to help. I work for an offer right now, and their show rate is terrible and really great. It's honest. The best offer I've ever worked for.

[Layla Hormozi]

Well, you haven't worked for us.

[Caller]

Dude.

I know.

I just had a group reach out to me. Hey, hormones. He's looking for a closer, and I was like, I don't really trust you. Like, they do it themselves, right?

[Layla Hormozi]

That's actually correct.

[Alex Hormozi]

Yeah.

[Caller]

Yeah. You know how it is. Yeah. This offer is great. They scale plumbers, and they're so good, and I just have so much conviction for their offer. Yeah, our close rate is great. But, I mean, you obviously closed way more than me, and you know that if the close rate is too high, there's a problem.

[Alex Hormozi]

Yeah.

[Caller]

And part of that is our closer, or. Excuse me, our show rate is. Is 20, and our close rate is insane. So, you know, we get three calls a week, and we'll close two out of three. We'll get five calls a week. We'll close three out of five. Or four to five.

[Alex Hormozi]

Yeah. You mean they actually pick up? Is that we're saying not scheduled?

[Caller]

Yes, exactly.

[Alex Hormozi]

And, yeah, couple things. You're good. So there's. There's probably a handful of issues that are actually happening prior to. So, like, sometimes it's an uphill battle. Like, if you're like, dude, I'm calling the lead immediately. I'm. You know, I'm. I'm calling them 10 times, you know, within the first three days, and I'm calling him twice. In the first five minutes, like you're doing all like the fundamentals, like the basics. Right. If you're doing that stuff and you're still not seeing increases in, in show rates, then it's usually things that are happen prior to the scheduling. Okay, so that means. Exactly right. So basically there's not, there's insufficient friction likely in the funnel. And so as a result it basically, if you remove too much friction, then what's happening is that like it's so easy to book a call that you actually have fewer total shows. And so your metrics, like it's kind of getting into the vanity metrics game of like, look, we got 100 call scheduled. It's like, dude, it doesn't matter. Like we only care who shows. Right?

[Caller]

Yeah.

[Alex Hormozi]

And so being willing to say, well, we doubled our cost per booking, but our show rate, because you're at 20%, it's like our show rate from 20 to 60. So we tripled our show rate but we doubled our cost, which is still a 50% increase. Right?

[Caller]

Yeah.

[Alex Hormozi]

Okay, so I would look at the application number one. I would also look at like, so is it, is it just, is it just straight to booking or how's the. I can't see the funnel, but like, is that the, like, how's it working, bro? I can't.

[Caller]

I mean the funnels changed too much in the last couple months. So as at the exact moment the funnel is, or an offer or promotion we're running. And then it's also just like, hey, if you want to scale up, book a call. And then it's very basic info. You know, name, email, how many people are working your company, what's your revenue? And then, and then it just goes straight to hey, no, don't miss your call. And it's basically a 10 second video of the owner going, hey, this is.

[Layla Hormozi]

Let'S change your life.

[Caller]

And that's why.

[Alex Hormozi]

Oh, that's the, that's the vsl.

[Caller]

Yeah, basically.

[Alex Hormozi]

No, no, no. Did you. No, you need like a 5 or 7 minute VSL. So the proof checklist, which is tell your owner to go buy that but donate some books by the end of the day. But the proof checklist basically help you script out the vsl because you have to right now. Like the symptoms you're expressing are things that are, I mean both, all of this is in the sales system. So you've got the lead nurture process and you've got the proof checklist. Both of those things are the things that are missing, which is why you're having so few show rates or the show rate so low. The fact that you're closing is great. But I would bet you that if you put in that basically more proof on the funnel and the VSL itself, which typically the way it's going to be is going to have proof, promise, plan right at the beginning of the vsl. So like, you know, how do you know we're good? Or sorry, like, what's the promise? What's the plan of how we're going to help you do it? And then what's proof that I know that you're legit? And then we walk through the four step belief breaking, which is like, okay, what are the four things that people, you know, struggle with? Or like why they, why they object, right? So it's like belief, 1, 2, 3, 4. And then we order this and you'll be able to watch this live stream later. So I'll just talk fast. So it's what they believe, why they're wrong, what's right. And then proof. All right, and then that stack of that four steps you do four times. So it's basically 16 pieces to that VSL. And then you CTA at the end, whichever, whatever the next step is, which is like, hey, text us back, you know, this thing. And then when that person texts you, right? Then what we want to do is personalize the roadmap that we're going to show them so that they're like, oh, they actually did some work for me ahead of time. Right? It's just like, I mean, just like plumbing. It's like, oh, we actually, you know, I looked, I pulled up Google Maps and it looks like, you know, your home was built in 1971. They were usually using these types of pipes at that point. And so I'm going to bring the stuff that's actually going to be able to fix this. I may be able to do this even faster for you. They're like, oh, wow, that was impressive. So like now the question of you not showing up or like I'm using a home services example example. But like the question like vanishes, right? So like, oh, wow, they like really understand my business. And so I would, if I were you, the salesman, we have to install those two Playbooks. But in addition to that, I would, if I'm you, I would basically do little mini AI research, Zapier or make.com automation, whatever to get a full breakdown of that business. The reviews they have, what people say, you know, some of the employees at the business, like, like imagine like, hey, So I know Tom and you know Gerald work for you. Do you have any issues with. They're, like, holy. Like, it's like you want to blow them away, but with automation and AI now you, like, you can do that really, really well. All right, I got to call the next person. Okay, that helps.

[Caller]

All right, man.

[Alex Hormozi]

Nice to meet you, too. Appreciate you.

[Caller]

Yeah, cheers.

[Alex Hormozi]

All right, bye.

[Layla Hormozi]

Tick tock, tick tock.

[Alex Hormozi]

I know, I know. I get carried away.

[Layla Hormozi]

You gotta call these buyers.

[Alex Hormozi]

Yeah, yeah, my bad.

[Layla Hormozi]

Special numbers that I've been given as well.

[Alex Hormozi]

You want to or you want to tell me what it is?

[Layla Hormozi]

Come on, Ed. I need that special number.

[Alex Hormozi]

I'll call Santiago first and then the special number. Okay, Santiago.

[Layla Hormozi]

Where we prank call them instead.

[Alex Hormozi]

I don't even know what that means.

[Layla Hormozi]

Like, wouldn't it be funny to be prank called by yourself?

[Alex Hormozi]

What? Yeah.

[Layla Hormozi]

You didn't do that in, like, high school.

[Alex Hormozi]

No, I didn't. I didn't.

[Layla Hormozi]

So lame.

[Caller]

Your call has been forwarded to voice.

[Alex Hormozi]

Tough one, Santiago.

[Layla Hormozi]

Why don't you leave.

[Alex Hormozi]

Leave a voice memo. Oh, well, it's gone now.

[Layla Hormozi]

That's so rude.

[Alex Hormozi]

He doesn't know. Leave the voice memo. The opportunity of a lifetime. She passed him. Okay, well, I'll leave a voicemail. Nathan. Yeah, what's up, dude? You're on Hermozi hotline.

[Caller]

What's up?

[Layla Hormozi]

How's it going?

[Alex Hormozi]

It's going good. All right, rock and roll. We have, like, two minutes because I'm calling people who bought books, so. We're doing it right now. How can we. Right now?

[Caller]

I am a sales manager for. Oh, that's crazy. I'm a sales manager for a proactive maintenance company. We are launching a new software with sensor capabilities and an AI platform and. Yeah, just was buying the book to.

[Alex Hormozi]

See how we can enhance.

[Caller]

Yeah, enhance that above all your other books and. Yeah, just trying to upgrade my career, sell some stuff.

[Layla Hormozi]

60 seconds to ask a question, Nathan.

[Alex Hormozi]

Yeah.

[Caller]

That'S pretty much it.

[Alex Hormozi]

Well, I mean, I can just say thank you.

[Caller]

Yeah.

[Layla Hormozi]

Yeah.

[Caller]

Honestly.

[Alex Hormozi]

Yeah.

[Caller]

This is a crazy honor. I'm, like, a huge fan of yours, dude.

And.

Yeah. Just love your stuff.

[Alex Hormozi]

Well, I'm a huge fan of yours for. For putting in the work, man. Chopping wood.

[Layla Hormozi]

Yeah. We appreciate you. Thanks for supporting and buying a book.

[Caller]

Yeah, absolutely. My pleasure, guys. I appreciate it.

[Alex Hormozi]

You bet.

[Layla Hormozi]

All right, well, hey, have a good Monday.

[Caller]

Thanks.

[Alex Hormozi]

All right, later, man. All right, bye. I was like, wave at the phone. That's my own thing.

[Layla Hormozi]

Old man.

[Alex Hormozi]

Do you want to. Old man mosey? Okay. Do you want to. Do you have a special number?

[Layla Hormozi]

I'm waiting on a couple of them.

[Alex Hormozi]

So let's go.

[Caller]

We'll go.

[Layla Hormozi]

Alex.

[Alex Hormozi]

Alex. Oh, there's not enough room in this live stream for more than one of us. Not enough room in this live stream.

[Layla Hormozi]

Do not hang up.

[Alex Hormozi]

Oh, you want to leave that? Okay, Layla's gonna prank call. Can you imagine this? Dude?

[Layla Hormozi]

Do you guys remember when I know Varen hot or not? You remember that?

[Alex Hormozi]

Dude, what did you do growing up? To be fair, I went to all guys school, so hot or not was not really a thing.

[Caller]

This is Alex Miller with Lux Denver.

Sorry I missed your call.

Feel free to shoot me a text and I will get back to you as soon as possible.

[Layla Hormozi]

Tough, tough, Alex. But this is Layla and Alex Hormozi.

[Alex Hormozi]

What's up?

[Layla Hormozi]

Saying hi. Hormozi hotline. But you missed the call, so I said we have to leave you a voicemail.

[Alex Hormozi]

I feel like this is so. It's worse than not getting a. Like, I feel like getting a voicemail. It's like. It's worse than just not getting a call.

[Layla Hormozi]

I don't think so.

[Alex Hormozi]

God, it's terrifying. Well, Alex, thank you for. For grabbing a book. And we wish you all of the. All of the fortune that comes from everything in its.

[Layla Hormozi]

Thanks for supporting.

[Alex Hormozi]

Yeah, appreciate you. All right. Okay.

[Layla Hormozi]

How awkward was that?

[Alex Hormozi]

That? I don't think that was that awkward. I don't think that was awkward at all. I thought that was friendly. All right, do we have another one?

[Layla Hormozi]

I don't know. It's taking this long for.

[Caller]

So long.

[Alex Hormozi]

Fine. All right, well, I'm gonna call the next one. What? Okay, I'm gonna call this one.

[Layla Hormozi]

Yeah.

[Alex Hormozi]

All right.

[Layla Hormozi]

We don't even know who it is.

[Alex Hormozi]

Carlos.

[Caller]

Hi, this is Carlos Rodriguez. Please leave your name and message. Wow, thanks.

[Layla Hormozi]

What should we say? Leave him something inspiring.

[Alex Hormozi]

Something inspiring. Leave no doubt be one of zero. This was from Rosie hotline, and we missed you because you grabbed. You just grabbed a book and you're probably on the live stream and I don't know you missed it, but we love you and we appreciate you supporting you.

[Layla Hormozi]

Love him.

[Alex Hormozi]

Well, I was like, calm down. Jeez, Jake, come on, get out of here, dude. He's saved by the bell, dude.

[Caller]

I was.

[Alex Hormozi]

I. My finger. Finger was. Was hovering over that. Hang up. All right, dude. How can we help it?

[Caller]

Okay, so who wondered why? I'm Carlos Rodriguez, Stanford Ph.D. research student. What do we do? I make medicine. So I'm working on creating new treatments for leukemia, trying to get Rid of chemotherapy and radiation to help treat people with blood cancer. The problem that I'm having is that we're having a hard time getting funding.

[Alex Hormozi]

Right.

[Caller]

Had recent budget cuts. A lot of funding is going missing. It's getting harder for people to get funding.

[Alex Hormozi]

Sure.

[Caller]

We just recently submitted one thing which I think has a pretty high probability of getting us, you know, 100k, 200k over the next year or two, which isn't really enough to cover.

[Alex Hormozi]

Yeah.

[Caller]

The three staff that we have.

[Alex Hormozi]

Okay.

[Caller]

So I'm looking to you, seeing if we can come up with more creative ways of getting this funding. Research funded, because we have some really exciting results that we can do bone marrow transplants without chemotherapy or radiation in mice. But we.

[Alex Hormozi]

How much you need to accelerate this?

[Caller]

We need money.

[Layla Hormozi]

How much?

[Caller]

I'm thinking $2 million would get us to the finish line in monkey studies, you know, by the end of this year, possibly middle of next year.

[Alex Hormozi]

Got it. So how big is the average grants? Like, how many do you just normally get? 1 grant or multiple? Multiple grants.

[Caller]

We normally apply to, you know, three or four grants. On the high end, they can be 10 million, but you get that, you know, once every decade. Or, you know, the more sustainable version is one grant every every year or two. And that keeps the lab running and helps pay for the staff.

[Alex Hormozi]

Yeah. So my thinking process is that this is. I mean, believe it or not, this works the exact same way as like, closing a deal. You know what I mean? And so I think, to me, I would hear this and you can jump in, but like, insufficient volume of like, okay, we're playing to three or four. It's like, how do we apply to like, 300? Like, I try to solve that question, like, what would it take to guarantee that this doesn't fail? And I just, I do that. I know that sounds incredibly violent, but hopefully this launch was like a little. A little example that I try to walk that talk. Like, I just, like, I just. Like, how can we max. Maximize the likelihood of success?

[Caller]

Right.

There's only so much that you can write or rewrite yourself. And there's all these AI detection tools. So you have this body work that you've written. You want to use AI to say, hey, take some of the points that I've already written and help adapt it to this thing. But then you don't want it to get flagged by, I don't know, an AI checker on the other side.

[Alex Hormozi]

Okay, but I mean, you said you only apply to three or four. Like, could you do, like, 30 or 40. Because the alternative is that you lose the research, right? What was that? Well, the alternative is you lose the research, right? Is that it stops. Right? Right. So to me, it's like life or death, right?

[Caller]

It's. It's existential, right?

[Alex Hormozi]

So to me, it's like, all right, well then, like what, like again, what would it takes? Yeah, like, yeah, we pull out all the stops. If it's like this or die, then it's this, right?

[Caller]

Well, I guess we don't. We have maybe a year of funding left, maybe less. So, yeah, it's do or dyno, right. I guess shifting, shifting everybody's focus from the research that we do. You know, we have a body of research and results, but it's going to.

[Alex Hormozi]

Go to waste unless you get the grant. It's going to go to waste unless you get the grant. So, like, the constraint of the system is cash flow, and the way to solve that is through volume of outreach in order to volume of applications, literally to get grants.

[Caller]

Are there other perhaps creative strategies, I don't know, crowdsourcing funding for research that might be able to.

[Alex Hormozi]

There totally is. I would just say what's the. Like, I always operate from find the highest likelihood path and then make it unreasonable that we wouldn't succeed by doing so much volume on the highest likelihood path. And so if you already know how to do grants and you've done multiple of them in order to get grant money, then I would say, well, if we 10x the amount of volume, the likelihood that we, you know, are successful. So let me ask this differently. If you were to do 30 grant applications, what do you think the likelihood if all 30 were good, that you'd get the funding you need?

[Caller]

I'd say pretty good.

[Alex Hormozi]

All right, well, to me, it's like, I don't even have another question. Like, to me, it's like, it's just.

[Layla Hormozi]

The time it would take. Yeah, the time it would take to figure out a different strategy. It's just the same as a business. It's like, all right, we want to figure out a new funnel right now. It's like, no, we want to just see ruthlessly pursue making the old one work.

[Alex Hormozi]

Okay, that's it, man. It's just ruthless volume. Well, if it's like, if it's like, oh, the team. It's like, well, we can't stop the research. It's like, well, this, the research is gonna stop no matter what unless this gets solved.

[Caller]

Right?

[Alex Hormozi]

So, like, that's that. But. All right, dude, I appreciate you thank you for grabbing a book.

[Layla Hormozi]

Yeah. And also just to respect what you're doing.

[Alex Hormozi]

Yeah, respect what you're doing, man. Thanks for saving lives.

[Caller]

Have a good one.

[Alex Hormozi]

All right. Too. Bye. All right. All right.

[Layla Hormozi]

Wow. So discreet.

[Alex Hormozi]

All right. We're doing so. All right. Santiago. Santiago Ramirez. Oh, no. Tyler Mars. That's the. Just. Just popped up. All right. Tyler Mars, it's you. You're up.

[Caller]

Sorry, the number has calling restrictions.

[Alex Hormozi]

That is Tyler, you didn't call her color. Oh, fine. Go for it.

[Layla Hormozi]

I got one. I got one.

[Alex Hormozi]

Okay. These are hot, hot dials. The weather is hot. What? What?

[Layla Hormozi]

I just decided to call.

[Alex Hormozi]

Oh, well, there you go.

[Layla Hormozi]

Now you got.

[Alex Hormozi]

There's no overhead mic. You're good. Or overhead thing. Cameron. Cameron. What's up, man? How do you know who this is?

[Caller]

Oh, I'd say we've known each other since we were probably three or four. Cameron.

[Alex Hormozi]

What's up, dude?

[Caller]

What's up, man? How you doing?

[Layla Hormozi]

Hey, Cameron.

[Alex Hormozi]

What's up, man? Us. Okay. So. Well, you're on a Rosie hotline. How's the physical? Well, how's your new baby, man? You got. You got. Oh, good.

[Caller]

Yep.

[Alex Hormozi]

Good.

[Caller]

Yeah, she's. She's. She's doing great, man. Having two girls is.

[Alex Hormozi]

Is wild ride. All right, Just what that's like, having two girls. Well, you know, anyways, it was before Layla.

[Layla Hormozi]

We're running on fumes here, Cameron.

[Caller]

Okay, okay.

[Alex Hormozi]

Talk to me, you guys.

[Caller]

I mean, I've got to be riding on straight caffeine at this point.

[Alex Hormozi]

Oh, yeah.

[Layla Hormozi]

I don't even drink caffeine.

[Alex Hormozi]

Well, I just downed a whole. Anyways, so tell me about the business, man. What can I do? So physical therapy. Are. You guys are online? Yeah. What do you tell me what you're doing right now?

[Caller]

So, yeah, we had started as online. We moved into two subways, brick and mortar spaces.

[Alex Hormozi]

Okay.

[Caller]

I've been doing concierge mobile stuff. Concierge mobile had, like, a good margin, but it just was really hard to grow with that because just travel time and everything. So just prioritize the brick and mortar.

[Alex Hormozi]

Yeah.

[Caller]

L. My wife, Lindsay, she's been crushing it.

[Alex Hormozi]

Yeah.

[Caller]

Where we kind of hit a snag was we had. We made a hire last year in September. Hired a pt.

[Alex Hormozi]

Okay.

[Caller]

Started off okay, and then just when Lindsay came out from maternity leave.

[Layla Hormozi]

Yeah.

[Caller]

Our PT just, like, tanked. So we just separated with our PT this past week.

[Alex Hormozi]

Got it.

[Caller]

So our margins had, like, gone way, way, way, way, way down.

[Alex Hormozi]

Yeah.

[Caller]

But now we've been building back up, so we're getting back to where we were with revenue.

[Alex Hormozi]

Okay.

[Caller]

And then I'm gonna, I'm gonna step in while we, while we're looking to bring in two pts.

[Alex Hormozi]

Okay. And this is brick and mortar, right? Yeah, yeah, I got it. Okay. So what are you doing for Legion?

[Caller]

So we do meta ads, so Facebook, Instagram ads.

[Alex Hormozi]

Okay.

[Caller]

I think about 60% of our lead generation is word of mouth either through our patient base or through like referral contests.

[Alex Hormozi]

Yeah, heard so. But 40% comes from ads. So I mean right now the limiter to grow, like how, how much more, how many more patients can you take before you're at full capacity at the.

[Caller]

Location that is the problem is that we have these two subleases that just darn don't really allow for us to grow. And so like it's been kind of stuck in this cash cash flow problem where it's like I'm not able to generate enough to move out of this.

[Alex Hormozi]

So I wonder, I wonder if you have a pricing issue. Yeah.

[Caller]

So we increased our price four times over the past year and a half.

[Alex Hormozi]

Love this for us.

[Caller]

And so our, yeah, our. So our single visit rate is 279. So. And then we, we offer most of our. We don't try to not sell one off. So we do packages. Yeah, we have two different ones that we sell.

[Alex Hormozi]

Okay, what's the price point?

[Caller]

Yeah, the low one is 239 a visit and. Sorry, 219 to visit and the other one's 239.

[Alex Hormozi]

And you're selling them as bundles though. You're selling them a solutions. Right.

[Caller]

It's a plan. I mean we're not marketing it that way. We market this, the plan of care.

[Alex Hormozi]

But I mean.

[Caller]

Yes.

[Alex Hormozi]

Yeah. So they come in and you're like it's going to take 12 sessions. So it's going to be $2,400 or whatever the hell. Right, okay, got it. Do you have care credit?

[Caller]

We do not.

[Alex Hormozi]

I would set that up.

[Caller]

We do have financing option. I just haven't been using it.

[Alex Hormozi]

Okay, well, I mean if you do, typically you'll get a 30% lift in revenue when you have like a good financing partner. That happens kind of across the board. Especially if you're in higher ticket stuff like yours is. And yours is something that. There's plenty of lending partners that do stuff for health. You know, I mean since you're in a. You are, you know, a doctor. Right. So like if you have the option, which you do, I would use it. And if you're if you're like, if no one's even needing it, then to me you still probably have some room to increase price. Because if you're like, you're struggling with cash flow, which I'm not entirely like. So you've got these, you have multiple locations right now that are subleased.

[Caller]

Yeah. So because Lindsay's in public health, that niche. So we're, we're the two places we sublease are multi provider practice areas. So it's birth specialty workers.

[Alex Hormozi]

Yeah.

[Caller]

So that's where we get like a ton of our referrals from and.

[Layla Hormozi]

Huh.

[Alex Hormozi]

Why not specialize in that? What was that? Why not specialize in that? Because I feel like it's got.

[Layla Hormozi]

Okay.

[Caller]

I'm, I.

So the only reason I'm even going back into treat is just to like bump our cash flow up a little.

[Alex Hormozi]

Okay. So you got to do what you got. Okay.

[Caller]

Right.

Yeah. It's not like what I wanted too long term.

[Alex Hormozi]

Okay. But yeah, it's. It's just so.

[Caller]

So we can get somebody. So I can get a little bit of cash so I can bring someone back in.

[Alex Hormozi]

Okay.

[Caller]

Yeah. We were just like getting crushed by the lack of production by our PT and the overhead was killing us.

[Alex Hormozi]

Okay. So basically usually to drive more cash flow, but it's the ultimate escape path. Like waiting till these subleases go out or like what.

[Caller]

I mean I'm not locked into them at the end of this month. I'm technically out of my. Like they go to month to month.

[Alex Hormozi]

So I leave whenever. Okay, well that sounds nice. But you said she's doing well online, right? She.

[Caller]

I mean, so.

[Alex Hormozi]

I would say the.

[Caller]

Vast majority of the demand is for in person.

[Alex Hormozi]

Okay, good to know. All right. Even from like your Instagram stuff.

[Caller]

Yeah, I mean we haven't been pushing the online stuff. I can, I definitely can.

[Layla Hormozi]

You said she's in pelvic help, like pelvic floor therapist.

[Caller]

Yep. Yeah, she's in public floor pt.

[Alex Hormozi]

Yeah. That's why it's important person.

[Layla Hormozi]

It's. It's a little tough online.

[Alex Hormozi]

Yeah. Okay. Heard. Got it.

[Layla Hormozi]

Well, it's not. Okay.

[Alex Hormozi]

So. So fundamentally we just need to make more money and the way to do that is that we have to get more people in ad financing, raise prices. Do you have any kind of VSL that people watch prior to. To coming in?

[Caller]

No, but one of the guys in the Mastermind. I'm in.

[Alex Hormozi]

Yeah.

[Caller]

Sent me his like his nurture sequence. It's like a clinic to. And like welcome. So I. So I'M gonna, I'm gonna mimic that and then build it into ours.

[Alex Hormozi]

Yeah, well, like that, like right now you. You're selling 2K plus packages, and you're doing it without a VSL and without financing, which means that you probably still have room to go up price wise.

[Caller]

Yeah. And Lindsay's close rate's 95%. So, I mean, it's good.

[Alex Hormozi]

So you've got to, like, people who are coming in for that are in screaming hot pain, from what I understand. And they just had like a traumatic event or they're about to, you know, I would, I would like, I would raise the price, man. If. If cash is like, if you're closing 95 and you don't even have, like, all the sales stuff in place for, like, the right sales motion, then you probably have at least a double in that.

[Caller]

So yesterday you were doing one of these calls and like, you. I forget who you were talking to, but you said something that was like, really intriguing to me, and it was a little bit different from model. The guy was like, doing SAS stuff. But yeah, you know, one thing that he talked about was that we had like a, you know, a premier program up front. And it was like a really short, like. Yeah, eight weeks something.

[Alex Hormozi]

Yeah.

[Caller]

And then it was like, because, like, right now, for me, our biggest problem is, I don't think we have or not our biggest, but eight big problems. We don't have, like, strong monthly recurring. So I think it would be interesting if, like, I did something similar when you're talking to that guy, where I have like a premier package for, like, somebody who's coming with that hot spring pain. And I said, but, like, I'll give you this for free.

[Alex Hormozi]

Yeah.

[Caller]

If you just come into this, like.

[Alex Hormozi]

That'S the decoy offer. That's the decoy offer in moneymong.

[Caller]

Like, you know, 1500amonth.

[Alex Hormozi]

Yeah, that's the decoy offer. That's what it is. So they come in, you say, hey, this thing's $6,000. Or if you just become a member of our, you know, pelvic platinum club. Platinum pelvic. Who doesn't want a platinum pelvis? Right? And so. So then we'll give you this $6,000 get for free if you just join our club. Right? Obviously not club, but you know what I'm saying, Right? Like the membership, Right? So that. So that's like. So either or is fine. Like, if you want, you don't want to do any continuity, no big deal. You can just pay $6,000 a day and we'll take care of you, or we'll just give it to you. It's free. When you join the. The goodwill on that offer is crazy, right? And I mean, it crushes. It goes like. And the way that you do this for everyone who's watching this, by the way, is you can balance how much cash you get up front by the price disc. So I go over the metrics inside the book, but basically there's a price premium of 30%. Because we, we ran this test, people are willing to pay the. Basically, when you're at parity, meaning 50% of people will go to continuity, and 50% of people just buy the one time thing is when the one time thing is priced at 30% higher than the recurring. So let's say it's two months is the duration of your thing and your membership is, let's say, $200 a month. So $400 is the membership price for eight weeks. And if I sold an eight week thing and I sold it at $550, I'd have the same number of people who take 550 as 400. So that's the 50, 50 split. And you'll have more front loaded cash. If you want more, like more people into membership, then you just basically keep jumping it by 10% each until eventually, like, no one, you know, takes the front end thing and everyone goes into contract. Continuity. Right? That's the idea. But the goodwill on that offer smokes. It's great. People love it. And then, and then you can combine that with the wave fee offer, which is in the continuity section, and just say like, hey, if you cancel before this period, you got to pay that. And that's the way we do it.

[Caller]

Love it.

[Alex Hormozi]

Cool.

[Caller]

Yeah.

[Alex Hormozi]

Rock and roll, dude. Appreciate you. Congratulations on the kiddos.

[Caller]

And congratulations to the both of you. This is monumental feat.

[Alex Hormozi]

So Cam and I went to. For anybody who's watching, we went to. Where do we go? We went to middle school. Middle school together, but we were neighbors. And so, yeah, from Baltimore. You can hear the Baltimore accent.

[Caller]

You know, I've been told that several times. And I, I still to this day, I'm like, did you have like a.

[Alex Hormozi]

Deeper Southern draw than the last time I talked to you?

[Caller]

Maybe.

[Alex Hormozi]

Yes. Okay, well, dude, I gotta hop on these other calls, but I appreciate you, man.

[Caller]

Of course.

[Alex Hormozi]

Thanks so much. All right, See it. All right, Hermosi hotline. Next up, we're going. Oh, shoot. We're about to hit our next. No, no, no, we're good, we're good. Okay. Well, we have our next milestone. That's at 3.3, by the way, guys. So. Which I'll read. So yesterday I went over 15 mechanisms inside the Money Models books. That was a whole presentation, the Money Models system. But inside the lost chapters, which is that guy, which everyone showed up live on the first day. Are you displaying it? Thank you. There you go. So everybody who showed up live got a free digital copy of this. This will be for sale after the event. So anyways, that was just my thank you for everybody who showed up live for the actual launch. But inside of here, I have some of the other mechanisms that I cut out because they're like, maybe too niche or too advanced. And so we'll do a little reading when we hit 3.3.3. All right, so just look out for that.

[Layla Hormozi]

We got special stuff.

[Alex Hormozi]

Yeah, we got some special. We got some special goodies. Okay, so next. Who do we call? Next? Who do we call next? Do you like? What name do you like? Okay, so we just got a. Let's get a hot one. Okay. Joseph Fit for Life Academy just came in. All right, 800 bucks. Now. This is 800. 100. Okay. I thought we. We did. Hey. Oh, damn. That was a. Hey, Speedy Gonzalez on that one, man. All right, well, Joseph Fit for life academy, 600k revenue, 300k profit. Shoot. Talk to me. Got five minutes.

[Caller]

Happy birthday, Alex.

[Alex Hormozi]

Yes. Thanks, man. I appreciate it.

[Caller]

Happy birthday for the 1000th time anyways, man.

[Alex Hormozi]

No, dude, I'll take it. I'll take a thousand birthdays.

[Caller]

I'm a young entrepreneur.

[Alex Hormozi]

Business.

[Caller]

Been in the whole business scheme probably.

[Alex Hormozi]

For like a year and a half now.

[Caller]

I've been growing my socials for about five years.

[Alex Hormozi]

Cool.

[Caller]

We do online health and fitness coaching, primarily weight loss. We focus on a slightly older population, probably 40 to 60 people who have been struggling with weight loss for the majority of their life. Pretty much. Okay, and where was I going with.

[Alex Hormozi]

With this?

[Caller]

The main goal right now is to be able to double the business over the next six months.

[Layla Hormozi]

Sure.

[Alex Hormozi]

Okay.

[Caller]

I think the simplest strategy is to get from. We're doing 12 to 15 new clients at the moment at a 300 price point for six months. It would be the double the amount of clients that we're getting per month. And using your principle of just more doing more of what's already working. So we get to a million.

[Alex Hormozi]

Love this.

[Caller]

Our general funnel is free. Lead Magnet, which is an ebook on the front end on social media.

[Alex Hormozi]

Okay.

[Caller]

100 organic. We don't do any paid. Okay, that goes into a DM set of flow in the DMS.

[Alex Hormozi]

Okay.

[Caller]

And then they book sales calls.

[Alex Hormozi]

Okay.

[Caller]

DM center is setting up 10 to 15 calls per week at the moment, and we're getting about 200 new leads per week. My thought process to double leads would be I can't do double the content because I already create a good amount of content.

[Alex Hormozi]

Okay.

[Caller]

I would love to be able to start running some paid ads simply because we get a lot of unqualified leads from overseas, India, etcetera, that can't afford our service.

[Alex Hormozi]

Well, how much content do you make right now?

[Caller]

Pretty much daily across all platforms and then one long podcast and one long YouTube. Per week?

[Alex Hormozi]

Per week. Okay.

[Caller]

Yeah, double down. And I do want to. It's bandwidth at the moment.

[Alex Hormozi]

Okay. So this is what. So go ahead.

[Layla Hormozi]

We're going to say the same thing.

[Alex Hormozi]

Actually, I don't know if we will. I don't know if we're going to say the same thing. So instead of doing twice the volume, what I'm going to recommend is that you spend twice as much time on each piece of content.

[Layla Hormozi]

Yeah.

[Caller]

I would say I feel like I have like, the content dialed in pretty well. Like, that's what I would say I'm most skilled at. By far, we have close to 400k followers on Instagram and we probably get on average about 50 to 60,000 views per video.

[Layla Hormozi]

How much time do you put in each week to make content?

[Caller]

Probably between 10 to 15 hours of my week goes to responsibaction, and that would just be scripting, recording. We have an editing team, but I. All of the editing and posting for us.

[Alex Hormozi]

You want to just post twice a day instead of once a day.

[Layla Hormozi]

I mean, I'm thinking like, how do we deconstrain him in the content creation process and then do double the content with half the time.

[Caller]

Most of it comes from doing research of seeing what sort of formats are doing right now.

[Alex Hormozi]

Hooks.

[Caller]

Exactly.

[Alex Hormozi]

Yeah.

[Layla Hormozi]

So you do a lot of that research.

[Caller]

I do 100% of that.

[Alex Hormozi]

Oh, gosh, I don't know.

[Layla Hormozi]

The last time I don't even scroll content.

[Alex Hormozi]

Yeah. So that's something that you can for sure get. You can also. You can literally automate that task now. Okay. Yeah.

[Caller]

Okay.

[Layla Hormozi]

I think, honestly, I think a lot of people get really caught up in the content creation process and think like, especially because it's you and it's a personal brand, Often it's like, who else can do this but me and you have a system and it's just a matter of being able to write it down, explain it to somebody else what your system is. And now with AI, it's easier than ever so that they can do those pieces for you. Because, I mean, you're gonna say better quality of content.

[Caller]

Correct.

[Layla Hormozi]

It's like if you want better quality, essentially you're to get better quality, you have to put in more time, but you're already putting in a decent amount of time. And so the first thing that you probably want to do is make sure that you're not spending so much time on content. So how can you cut in half the time you spend? I was spending a lot of time scripting mine, and then I just stopped because I was like, I just can't even make content if this is what it is, because I have to run the business. And then what do you know, it's actually doing better now that I have other people helping do it.

[Caller]

Gotcha.

[Layla Hormozi]

And so I think that that's probably the biggest unlock for you, is getting that off your plate. And honestly, we know a lot of the biggest content creators and they do not do their own scripting gotcha or research.

[Caller]

Also say, it's what I enjoy the most. Like, I enjoy creating content. That's how I started. So I enjoy that aspect of it. And what you're saying makes perfect sense. And one thing I have been in, the question I originally asked, one of my big bottlenecks is that we've gotten to the point where we have about five to six sales calls on the calendar, probably three or four sales calls on the calendar every day. And it's a great problem to have, but I take all of those. So I now need to delegate that and get a salesperson in place. My thought process with doubling the leads sooner than later would be because I heard Alex, you talk about this on a podcast recently that, that it's a pretty simple unlock to start running some ads just to get more lead flow. Yes, to the lead magnet. That's already working.

[Alex Hormozi]

Yeah.

[Caller]

So my thought process is just like, start running some DM ads and just get a second DM setter, double lead flow, get one or two sales closers.

[Alex Hormozi]

And that be the simple.

[Caller]

At least in my perspective, the most linear path to 25 clients a month.

[Alex Hormozi]

Do you, when you're running a DM flow right now, is the at the end of every reel. Are you saying like, you know, dm, PDF or dm every single video and stories daily?

[Caller]

I feel like that also overwhelms the audience.

[Alex Hormozi]

Well, I'll say this, I don't know if it completely overwhelms the audience because a lot of the reels are going to new people, so they've never seen you before. Also, are you posting like, many, many times a day on trial reels?

[Caller]

No.

[Alex Hormozi]

Okay. So right now, Trial reels are 100% guaranteed new audience. So what I would do is look at your, like, sort by, you know, best reels of last 12 months. Right. And then you're gonna get, call it, you know, your top 20 or top 30 of all time. And I would post all 30 of those every month. You can even post like two of those a day in addition to your existing post and post those straight to trial reels. Only new people see them. And then it's still like, honestly, if you did nothing else from what we're talking about right now, just do that and you'll probably get like, you'll get a. You'll get a noticeable boost. And as long as they let you do it, I would just be. I would be milking the hell out of that.

[Caller]

Okay, that makes perfect sense.

[Alex Hormozi]

Cool.

[Caller]

Would you encourage the ad strategy?

[Alex Hormozi]

I. I want, like, real talk. I want to figure out how to make the content better, like, just being real. Because, like, I think that when you do start running ads, one of the issues you're gonna have if you go straight to DM is that, like, they're gonna be real. Like, they're not gonna be nearly as warm as the people are doing it now.

[Caller]

Even if it's retargeting based to people that have engagement with my content.

[Alex Hormozi]

Well, if it's retargeting, okay. But if it's retargeting, it's not going to be the end. The number size is not gonna be high.

[Caller]

Gotcha. Okay.

[Alex Hormozi]

You know what I'm saying? Okay, cool. I would do, I would do aggressive volume on the trial. Rails is thing one. And I, me personally, I would see how can I spend more time on the content. And that means that, how do I. How do I eliminate all the other stuff that are lower leverage on the content? So I can still maybe spend your same 15 hours or 20 hours, but on the higher leverage work so that you can still make it better? Because that's, that's the long, long term is that you just have to keep growing the brand because the. Yeah, because the ads is just going to reach further into the base that you have into slightly colder people. Unless you have a true cold conversion mechanism, which right now you don't. And to me, the risk of trying to figure that out right now wouldn't be my first bet.

[Caller]

Okay.

[Alex Hormozi]

Okay.

[Caller]

The last thing I will definitely say is that we do have a pretty strong brand. Socials are probably growing around 6 to 8k per per month in terms of new followers. And at what point would you say, turn on the ad switch where it's like, have that supplement the organic content?

[Alex Hormozi]

I just. What do you think?

[Layla Hormozi]

Not while you're selling.

[Alex Hormozi]

Well, not while you're selling.

[Layla Hormozi]

Yeah, I just, like, the thing is, it's, like, hard for me, which is like, I prefer, if you can, to hire ahead so that you don't have to turn down. Because what always happens is people turn up the lead flow and then they're like, well, I can't take any more calls. Or. Or you say, I am going to take those calls, and then you drop the ball on your content.

[Alex Hormozi]

Yeah.

[Layla Hormozi]

And so I'm just looking like, let's create that excess capacity so that when you get more lead flow, you have something to catch it.

[Alex Hormozi]

Yeah, yeah.

[Caller]

And in the process. At the moment, I'm in the process of hiring two sales closers, so this all makes sense.

[Alex Hormozi]

Okay. Rock and roll. Thank you for donating books, man. I appreciate you.

[Caller]

Of course. Thank you.

[Alex Hormozi]

All right.

[Layla Hormozi]

Oh, my gosh. How many copies are we away?

[Alex Hormozi]

We're very close to 3.3.

[Layla Hormozi]

I think the team has a present if we hit it.

[Alex Hormozi]

Oh, really? Well, let's do. Let's do. Let's do a. For anyone who's tuning in right now, we're calling people who are buying books and donating books, and so that's what we're doing. Okay.

[Layla Hormozi]

Randomly.

[Alex Hormozi]

Randomly, yes. So who's coming in? I got my. So many notifications. Okay, we got who we got, who we got who we got. Let's do. What's this? This is this. Okay. Oh. Oh, shit. Okay. Wow. We just hit 3.3. Okay, so we hit 3.3 million. Yay. Huzzah.

[Layla Hormozi]

Amazing. Yeah.

[Alex Hormozi]

So now I'm going to read an Excerpt from the $100 million Lost Chapters. And when we hit 3.335, I'll be randomly selecting people who donate 200 bucks. So as soon as we hit 3.35, I'll be calling immediate. I'm just shifting the list of people that we're calling based on who don't. Who donated books. And I'll be signing a personal copy of 100 million money models for 10 of you guys. Okay. So at 3.35, stay tuned for that. We're gonna be signing books now. Oh, we're signing them now. Yeah. Oh, okay, here we go. So we're signing books now. There we go. We got it. Let's rock and roll. Okay, so we. Shit. Oops.

[Layla Hormozi]

It's okay.

[Alex Hormozi]

All right. It's a lot. Hey, this is real. All right, so I'll sign this guy.

[Layla Hormozi]

He's real.

[Alex Hormozi]

Oh, well, they got a blue one. This is a special.

[Layla Hormozi]

Whoever gets the blue one, you should kiss it or something.

[Alex Hormozi]

What? The unhinged A and L. Okay, that's that one. Okay. Why don't you call somebody else? I'll sign. Okay. Yeah.

[Layla Hormozi]

What if I call anything of you?

[Alex Hormozi]

Oh, God. But you have a lovely singing voice.

[Layla Hormozi]

When we're at hotels and I call the front desk, they're like, hello, Mr. Buzzy. I'm like, Jesus.

[Alex Hormozi]

It's Mrs. All right. Appreciate you guys. 3.3. Yeah. Thank you, guys. You guys are awesome. Honestly, I'm excited because then I know that over the next 12 months, so many entrepreneurs are gonna get books. And it's like, it's the coolest thing.

[Layla Hormozi]

I actually gotta wait because we have surprise for you once you do this. So I'm not gonna call you.

[Alex Hormozi]

You can't call one.

[Layla Hormozi]

You're just gonna have to just call one.

[Alex Hormozi]

Do like a 60. The 62nd one.

[Layla Hormozi]

62Nd one.

[Alex Hormozi]

The 62nd one. They want a 62nd one. I want a 62nd one. Oh, Layla signed, too. That's the request. Also somebody. I saw somebody asking the chat lost chapters comes Tuesday morning. So that's tomorrow morning. It's via email. It's digital. And basically anybody who gets a book gets the digital stuff faster. All right. But, yeah, so you signed one. That was so kind of you. All right. Just to understand. Unhinged. Just absolutely insane. Okay. This is what I deal with. Just such a simple request was like, just call. Just call somebody. You know? She's like, I don't. She's like, I don't care. I don't need you.

[Layla Hormozi]

Yeah, you need to sign them faster so that we can get back.

[Alex Hormozi]

Well, you know, normally I have, you know, I have an assistant.

[Layla Hormozi]

And then maybe we can get in, like, the most recent person who purchases.

[Alex Hormozi]

Yeah, yeah.

[Caller]

To call.

[Layla Hormozi]

Could we do that, actually?

[Alex Hormozi]

All right, hold on.

[Layla Hormozi]

Could you guys text me the number for the person who called? Can we get the person who just bought at the 3.3? Is that possible? Somebody just text me the number.

[Alex Hormozi]

Yeah, so we have this feed on our phones of people who are buying, who are grabbing books. The book looks super thin. Oh, man. You do not know how my stuff works to do. First off, A book like this, if I were to cut it in half, it would be twice as thick, which is what most books are. I also put pictures in there to make sure that you can understand it. And the thing about a concept is that a concept, when described well, should be as short as humanly possible and as long as humanly possible. We're not in an age of more information equals better. So if this was a thousand pages, would you feel better? Of course not. If I were to pull your tooth out, it took an hour rather than five minutes. You'd rather take five minutes. So it's about what's contained inside. Yes. Why do we have. Oh, what's this? What do we have going on here?

[Layla Hormozi]

I don't know. It's somebody's birthday.

[Alex Hormozi]

Oh, God, yes. The things I deal with. All right, listen.

[Layla Hormozi]

We don't get to hang out on your birthday. And so I wanted to make sure.

[Alex Hormozi]

We'Re hanging out, we're talking business. This is all I want to do.

[Layla Hormozi]

Guys, are you going to sing? I'm not singing on live air. There we go. Happy birthday to you Happy birthday, dear Alex Happy birthday.

[Alex Hormozi]

Oh, God.

[Layla Hormozi]

Make a wish.

[Alex Hormozi]

Oh, make a wish. Oh, okay. I hope all you guys grow your businesses. You can't say it. Oh. You can't say the wish, otherwise it doesn't come true. If only I believed in these things. So, okay. I won't wish for you guys to grow all your businesses and accomplish all your dreams.

[Caller]

That was disgusting.

[Layla Hormozi]

That was the wettest candle blood I've ever seen in my life. Nobody eats.

[Alex Hormozi]

I feel. Yeah, I feel bad. There's, like. There's. There's, like, literally spittle. Yeah, that's on. That's on me. That's on me. I'll take that. I take that one. That's on me. Okay.

[Layla Hormozi]

All right.

[Caller]

Who's calling?

[Alex Hormozi]

Yeah, who we calling?

[Layla Hormozi]

Okay, you gotta read the lost chapters.

[Alex Hormozi]

Oh, I gotta. Yeah, you're right. Okay, lost chapters coming up. Okay, I'm gonna be listening. Can we put a poll in the chat real quick? I want to see which one they want to. Which. I'm gonna. I'm gonna read a couple names. Just put 1, 2, 3, or 4. I'm gonna say 4. I'm gonna say four different chapters from the. The lost chapters. Also, for the gentleman who's like. That's not very thick. That's what she said.

[Layla Hormozi]

You think I'm unhinged? I'll be back.

[Alex Hormozi]

Layla will be back. Okay, so I'm going to read the table of contents. I'm going to read. I'm going to. I'm going to pick four. I'm going to pick four different chapters. Let's go. Gosh, there's so many mechanisms I have in here. Okay. Free. Pick your price. That's an attraction offer. Pick your price. That's number one. Number two is going to be discount plus one time fee. That's number two. Number three is going to be freemium. Three is freemium. And then number four is. Let's see here. Let's do lifetime upgrades. That's number four. So which of these do we want to do? 1, 2, 3, or 4? You guys can vote in Lechat, which is French for chat, by the way. Le chat. You guys can write that one down if you want. My feed just cut out. So I think that we're still alive, correct? Yeah, just the TV died. Okay, got it. It's back. Okay, it looks like we've got Pick your price. Number one. Yes. Is winning. Pick your price is leading the way. You guys are casting votes. I'll stop it at 1000 votes, and then I'm going to go. So we got 700 votes. We got 800. 750 votes. All right, cool. It looks like Pick youk Price is gonna be the winner here. Okay, so we're going Pick youk Price. All right, I'm gonna read the story time. Story time with Alex. Okay. Pick youk Price. He's on page 97. All right. You guys rock, by the way. Okay, so this is an attraction offer. Okay. Pick your price. So this is the visual for it, by the way, which looks nice and cool. I don't know if they can zoom in at all, but that's the visual for the chapter for Pick your Price. This is in the Lost chapters book, by the way, which is free because I like you guys. I'm sorry. It's free for the people who showed up live. Sorry. It's $29, which we'll make available for other people. But everybody who showed up live will get one of these bad boys. All right, so let's read it. June 20th. Austin, Texas. I could see the Texas heat bouncing off the hood of the car as we drove. The roads were empty. Not a car in sight. It was like driving through a ghost town, except the town was our home. It was right in the thick of COVID As Lael and I were driving back from the pharmacy for some goods, we saw a young girl on the side of the road frantically waving a sign. Free car Wash is what it had on it. Intrigued I said, I wonder what the deal is. There's got to be something to it. Want to go check it out? So Layla obliged my whim, as she'd done many times in the past. She just knew how much I love going through sales processes because I'm a weirdo. So I turned the wheel of the car around toward the girl and headed up the ramp next to her. So around the bend, we rolled our car into the main car wash. As we pulled up, a man stood out from his seat in the shade, and we came up to a stop and rolled down the window. He pointed to a pricing chart and exhaled his spiel, which it became clear he'd already done hundreds of times already that day. The standard. This is what he said. The standard car wash is 100% free, but we're accepting donations on behalf of the staff to help the guys feed their families and get through this. We would all be super appreciative. We accept cash, credit and Venmo. And then he shut up and said nothing. I got the hint and took out a $20 bill. Looking at the pricing board, it was more expensive than the most expensive automated wash they charged for, even during normal conditions. He grabbed the 20, gave me a ticket, and waved me on. So I'm always pro business and I always will be. I felt great about helping a group of working men. And that being said, it had a very different feel than any normal process. Normally we buy things and don't think much past the transaction. In this instance, my purchase was funding something great. The American dream. As we went through the car wash line, I couldn't shut up about it. I was like, how great was that? Goodwill, lots of new business, cash flow on a high margin service. Brilliant. I'm definitely figuring out a version of this for gyms. And in the middle of COVID our gyms began using this scripting in their sales process, and it worked wonderfully. People who couldn't normally close were able to get an average ticket of about $99, which is more than the average low barrier offer for like a boot camp or something like that. It was splendid. I'll give you the details about how to do it and how you can apply this offer like this to attract new customers. All right, so that's the story behind this. So here's the description. You market the promotional offer as free. When the person gets to the checkout, you give them an offer to pick their own price. You'll explain the benefits of investing more, equating to higher investment in their own results. If they're after results. The more they pay, the more they'll pay attention. So here's some examples. So if you had a lemonade stand, you would offer a free lemonade cup. The upsell is but you can choose to pay something to help the families of the employees. As an additional bonus, the crew offered to make a cup of hand squeezed lemonade for anyone who pays or donates over $5. And we'll give you a pitcher to take home with you for any donation above $25. And give you three months of shipments for anything over 99 plus. Maybe this starts to sound familiar. Car wash example. So it was a free machine. Car wash and soap. That's the free one the upsell is. But you can choose to pay something to help the families of the employees. As an additional bonus, the crew offered to wax anyone's car. So you pay who donates over $30 and hand buff anyone who goes over 67 and do the entire interior of the car for anything over 99. You guys catching on how this works for whatever business you have? Here's weight loss. You'd offer a free 21 day weight loss program. The upsell would be pick your price. But Most people pay $99. We give this just to the coaches and their families. If you pick $99, we'll also give you an extra one on one call. If you pay over 199, we'll also provide our entire supplement handout. If you pay $499, we'll guarantee you'll lose 10 pounds. And if you don't, we'll let you use that credit towards any service we have. That's an example of another one. So here's another example of pick your price. So this is for a dentist. The offer would be a free dental cleaning. The upsell pick whatever you want to pay. Most people pay 99. Notice the way the phrasing works. Most people pay 99 which also gets them an extra XYZ or 299 for an extra Vywood. If you had a coaching offer, it'd be like the offer is free coaching and or mentorship. The upsell pick your price. If you pay 299, you will get the course that goes with it. At 997 you get six group calls. On top of this. The zero price comes only with access to the group. All right, so that's the concept. Now I'll give you some of the details that make this work. Okay. To further incentivize them paying you offer bonuses for three Levels of payment. So think small, medium, large to encourage them to pay something more than zero. Ultimately, if someone doesn't want to pay for the first thing, you've got to give them the basic level for free. That being said, you can and should still upsell them on other products and services during their time with you. This is similar to a limited free, which is a different thing, except instead of either or you have and limited free is what I called it. In an earlier version it became the decoy offer. But I digress. You have a sliding scale with no predetermined amounts, only rungs. Alright, so this also has no max. People can pay whatever they want, they can donate as much as they want. Now you want to make sure that at the beginning of the sale you explain that you do have a pick your price setup and that the staff is offering some different bonuses. The staff is offering some different bonuses at different levels, but they're not obligated to pay anything. So it'll seem like they're paying the employees, not the business, which for some reason people feel way better about, even though most businesses pay their employees. And so explaining that you're accepting donations and or allowing people to pick their own price will avoid any awkwardness at the end. You also get the goodwill of the process being upfront. Now when selling with that pre frame though, you can and should hit the prospect hard with confrontational questions to ensure they'll be a good long term candidate. This is especially if you sell like service, like heavier services. So if you feel as though they have no intention of staying, just weed them out. Alright, so be genuine about this. This should feel a little bit more like an interview. So the types of clients, again this is shifting more from transactional like the car wash story to a more transaction, more relational type sale that you're going to be doing ongoing client work. Okay, where are we? Okay, this should feel like an interview. So the types of clients you want are the ones who willingly pay and are appreciative. You want people who think with reciprocity. So this is the sort of mini test. This is like a little mini test for that. So ask real questions to gauge commitment level for their own good and yours. So examples. So are you willing to change the way you do X? Are you willing to stop doing Y? What if life gets busy? Will you stop showing up? Will you attend all of these appointments? So make sure the thing that you're giving away for free has low operational cost so you can still give it to people without burning out your staff. Alright, so save the higher operational cost stuff for the people who choose to pay. After you get to the end of the pitch, you'll outline what they get each level and then say, and this is key, we accept Visa, MasterCard or XYZ payment. Which would you prefer to use? Then shut up. They will then take out their card and tell you the level they want. It's hard for people to say no because we obviously attract with free and we deliver free if they so choose that. But we say, hey, many people do these other things instead. And as a result, if you want, you can just get all these other benefits as well. And when someone's, when it's framed that way, where it's like, hey, the employees are chipping in and doing this extra work, which is how businesses work in general. For whatever reason, consumers feel way better about paying employees in a business, even though the business pays the employees, whatever that framing allows. Many people then feel like, oh, I'll do the most expensive thing. We're benefiting the employees. Which is exactly what business does to begin with. Now, summary points. These offers can generate a lot of goodwill when done properly. People feel good when they buy them because it's not a demand, it's a choice. Alright? So it pools on people's generosity or reciprocity. People feel 100% in control of their own destiny. And you can play up the fact that you're helping folks from freight. It sets up a relation based on goodwill and sets the stage for future upsells. This is really key. It sets the stage for future upsells. Again, a money model is not just one of these, it's a series of offers. All right? And on top of that, the conversion rate is super high. So although the average ticket is typically lower with this type of play, it works well in low trust environments because it has so much goodwill loaded into it. So this is one of the easier kind of free upsells or free attraction offers that exist. All right, so pro tip, what did I refer my pro tip here? Paid version. Pick your price. Okay. Oh, actually I remember this. Yeah. So I saw an art gallery use this as well and this is how they did it. So every, every piece of art had a price range and so they said people could choose how much they wanted to support the artist. So for example, they said this painting is between 1:49 and 299. So I asked the owner how it worked and she told me that most people pay more than the halfway point because they don't want to seem cheap or Unsupportive. So this, this version is kind of like half goodwill, half capitalism. So I like, I kind of like it. It's just kind of a permutation of it. But give it a try if that type of thing fits your business. And if you're like, well, why did you not include that in the money models bug? So the, some of the plays that are in here are like, there's just. They're more niche, I think, in some instances. So it didn't match 100% of businesses. I had a. I have a very high standard for, I would say the $100 million canon. And so it has to be able to apply to like every single business. Has to be easy to understand. It has to be the most powerful one. This one has a little bit less cash up front than the other attraction offers that I put in here. But I see the main benefit of this particular offer mechanism is that it's really easy to sell. It's like very easy to sell. So if you're somebody who really struggles with sales, especially in a low trust environment, sometimes even in online environment where you like, don't have as big of a brand, it's a great, like what I would consider, like, intro offer. And so that's, that's just one of 24 chapters inside of. Inside of the lost chapter. So hopefully you guys dug that and that was kind of dope. So without, without further ado, let's fork. What are we doing here? Let's do. Let's. Let's call some more. Let's call some more book buyers. All right, so. All right, can somebody tell me the name of it? It's like, is it Sir Mix a lot? Who's like, call on? It's like, my girl ain't doing that thing she used to do. You know that? I, I keep thinking it. It's like some song. Maybe one of you guys in the chat can tell me. Okay, so we're going to go Onyx Holmes, Christian Stubbs. All right, Christian, you're up. You just donated 800 bucks, so we're going to do it. Let's rock and roll, baby. Was that cool for you guys? Did you guys like that, that little reading? I can pick another one if you guys want. Just let me know in the chat. If you want. I can read another one. I'll stop between this call and the next one.

[Caller]

Hello, this is Christian.

[Alex Hormozi]

What's up, Christian? What's up? You're on the Mosey hotline and we have five minutes. What is the. Oh, kiss Kiss. Thank you, Steve. Thank you, Steve. Appreciate you. Okay, so talk to me. Onyx homes, you've got 10% margins, so we want to fix that. Right? And I bet you. I bet you cash flow sucks. Okay, but you're pacing 25, so with that kind of growth and probably extended payment. Terms. Terms. Yeah, I can imagine cash is super, super tight right now. Okay, so first off, thank you for donating books. That being said, you're pacing 25 million. That's massive growth. Okay. Oh, really? Oh. Oh, okay, My bad. Well, then 6. Back to 6.2. There we go. Okay, great. So that's top line. And then profit. Profit margins is 10. So 600k. Got it. Okay, so construction. Okay.

[Caller]

Now residential real estate brokerage.

[Alex Hormozi]

Oh, is it Onyx Homes?

[Caller]

Yep.

[Alex Hormozi]

Oh, see, I assumed. Oh, really? Real estate brokerage. Wait, is she run here? Is she run here? Because we can. We can bring that. We can bring the goat. Do you want the goat? Let me see if I can get you the goat. Okay, Christian, I'm going to call you back in two seconds. I. I will call you back.

[Caller]

Don't worry.

[Alex Hormozi]

And when Sharon comes, and I'm going to have him because he obviously is, like, literally the king of this whole stance. All right, I'll call you back. Okay.

[Caller]

All right, bud.

All right.

[Alex Hormozi]

So exciting for Christian. All right, Nelson Ferreira, Vibes Creative. Let's go. What is. What country is 61 area code? Anyone know? Okay, I'll do another reading. I saw you guys in the chat. I'll do another reading for you guys. Another reading. What's up, dude?

[Caller]

Happy birthday.

[Alex Hormozi]

Thanks, man. I appreciate it. All right, tell me about Vibes Creative. We got five minutes. I want to help. All right, talk to me.

[Caller]

Awesome. So we're a video podcast agency based on Australia, and we grew our business mainly on completely done for you services.

[Alex Hormozi]

Okay. So done for you podcasting. So you. So people send you audio clips and you just post them.

[Caller]

Video clips of the podcast.

[Alex Hormozi]

Heard. Heard. Heard. Okay. So they send you video clips and then you done for you make them into podcasts.

[Caller]

Exactly. So I do everything regarding the strategy, production, posting, and all that stuff.

[Alex Hormozi]

Heard.

[Caller]

Okay. And we started coming up with the licensing now of our systems, which we tested, and it worked really well for the first person on scaling their business.

[Alex Hormozi]

Okay.

[Caller]

Now, we have added few other people on it, but we're struggling now with the results of some of them because it seems like we are almost overwhelming them. We're doing.

[Alex Hormozi]

Why'd you do this? Instead of just. Why didn't you just like keep growing the business. That was working.

[Caller]

Great question. Because logistically it is quite complicated to scale it. Eventually, like profit is about 40 to 50% with it. You can still do it that way, but it just seems like the licensing could be a bigger opportunity to scale to a million dollar months, which is the goal that we have right now. Okay, totally wrong though. But the licensing, which is an 11k offer. Yeah, that's what we've been thinking in order to scale this.

[Alex Hormozi]

I'm not in love with it, to be honest with you, man. I mean you're running 40, 50% margins right, in your main thing and then you kind of started this new like side hustle deal.

[Caller]

Is this a distraction then or.

[Alex Hormozi]

Yeah, I think so. You have a good business. It's like if you took all that attention that you've been spending, all of it and just put it on, how do I get more customers in? Because I would imagine that your churn is relatively low with the podcasting done for you.

[Caller]

Right?

Yeah, yeah. Clients stay at this point, most of them past 12 months. Yeah, we have 12 months agreements. There is a 90 day longer. Leave it in place.

[Alex Hormozi]

Yeah, I heard, heard. Yeah, I do, I think, I think you're, you, you have, you have a golden goose that you have 12%, you know, 12, 12, 12 month stick. You've got, you've got 40, 50% margins. You're doing 1, you know, 1 million plus top line. You just took your eye off the ball, man. You have a good business. Just grow it.

[Caller]

This is my thing though. It feels like right now that just adding more clients is kind of like it's the hardest way to do it with the completely done for you. The team in a way is also overwhelmed at the level that we do it.

[Alex Hormozi]

Dude, it's just a fast cash thing, man. Like right now you did the licensing thing and it's just like, like do the business, you know, I mean, do you, do you like, do you want this to be a long term thing?

[Caller]

Yeah, absolutely. We're in to build the number one podcast agency in Australia and then.

[Alex Hormozi]

Well, dude, if you want to build the number one podcast agency in Australia, don't like just build the number one podcast agency in Australia. I know how attractive it can be to just go sell something that's expensive. I get it. But like the team you said is overwhelmed right now, but that's okay. Like then you just hire more people to the team.

[Caller]

The thing is like if feel like it's almost not the right way, like as an example, like the Goal that we set up is, okay, we're gonna launch 10,000 podcasts and if we do it at the. Done for you, like we're doing it right now. Yeah, basically for Darrow. For now, we charge 10k per month for it. So we're selling it to, you know, seven, eight and nine figure entrepreneurs.

[Alex Hormozi]

Yeah.

[Caller]

It just feels that we won't be able to get there. Right. The goals they done for you that we set up is like, okay, let's find.

[Alex Hormozi]

Why can't you have 100 clients?

[Caller]

So you reckon that that's, that's a better way to go? Like just add a hundred clients when they're completely done for you?

[Alex Hormozi]

Well, I promise you that doing both will decrease the likelihood that you hit either. So if you insist on doing it, then I would say go all in on it. But I still think the thing is right now it's shiny and it's new and you just don't know the problems that exist with it yet because you haven't done enough of it. So it's like you're comparing all of the issues of this girl that you've dated for a long time and then you've got this new girl that walked in your life, but you just don't know that she is crazy and that she has a crazy ex boyfriend and then she's got all these other issues. You know, you have one devil you know and there's another devil you don't. And you just see the exterior, you don't know the interior yet. Like, this is shiny object. Like this is how it works.

[Caller]

So then would you, if you were in my position. Right. You did it successfully with gym.

[Alex Hormozi]

Yeah, but I didn't own any gems. I didn't own any gems. And also with Jim Launch. I don't necessarily know if the decision I made was the best decision. It was just the decision I made. And you already have a nationally scalable business. I was constrained by local, which again, anyone watching this, there's nothing wrong with being constrained local. I thought it was limited. I was wrong, but whatever. So point being, you just have to get 90 more clients and you're at a million dollars a month. That's not crazy.

[Caller]

So would it be better then to just focus on getting 100 clients and completely done for you? Forget about the licensing for now. Do you think that that's the best and most efficient path to hit million dollar months with this instead of doing the licensing, which is obviously it's way more profit and we can launch way more podcasts because it's more about passing on the systems, the templates, and we're vetting, training and.

[Alex Hormozi]

But you're. Let me make sure. I want to make sure I'm understanding what you're saying. When you're saying licensing, are you just saying that you're selling for $11,000? Like you're just giving them stuff? Like, are you feeding them clients or you just give them systems to get their own clients?

[Caller]

So what we do on the dump for you system, we basically pass on to them and we help them one on one for eight weeks to install it and running. And we vet, train, and place the video editor and social media manager at a stupid cost to run it for them. So all they do is basically be in front of camera and then we offer on the back end of that consulting.

[Alex Hormozi]

Wait, wait, hold on, hold on, hold on. So I'm gonna make sure I understand this. So you're not. Okay, so you're not helping people start podcast agencies. You're trying to help people do their own podcast. Yes. Okay.

[Layla Hormozi]

Correct.

[Alex Hormozi]

Where's the recurring on this?

[Caller]

Okay, the recurring in the backend is we place a video editor and social media manager for them to run the system so they don't have to do all the low level activities. Okay. And there is a 50% margin on that. On top of that, they can either scale to make more content with that team or they can, or they can stay on consultation.

[Alex Hormozi]

Say I'm consulting with you. Yeah, yeah, yeah. Heard, heard her. Okay, got it, got it, got it. Okay, so I'm, I. Now I understand the offer better. I thought you were trying to help people start their own podcast agencies. So I was like, dude, what are we doing here? Just, you know, like, just grow your agency. Yeah. Okay. Okay. This makes me feel significantly better. I'm not against it. I'm actually not opposed to it. This makes a lot more sense than the first thing I thought you were trying to do, and that's why I was so against it. It. Yeah, I'm, I. This, this is fine. I'm okay with this. And you just want, basically you want to switch your front end, right? You just want you to start selling this instead.

[Caller]

So we started already and we have got about 10 people. The first person that we got has tripled the business and it stayed with us over 12 months at this point. So that's proven the concept.

[Alex Hormozi]

Yeah.

[Caller]

Now we're just trying to. Basically, we noticed that we're having drop offs on the retention and people are not sticking to doing the things because essentially we're going just launching their podcast and placing the team and all this stuff. And we're also helping them launch their ads for them to start getting leads ASAP and then building as well the backend funnels and things with them.

[Alex Hormozi]

Sounds like a lot of work. And that's easier than just. Yeah. And that's easier for you. Oh, shoot. I've gone way over on this one.

[Caller]

Focus more on getting the biggest results.

[Alex Hormozi]

Okay, I get it. At the end of the day, man, all we have to solve for. Let me just tell you all you're solving for so you can answer this with a math question rather than a feeling question. All right, then I got to go to the next one. But what we have to solve for is that you need to have the maximum LTV and conversion rate. So basically, if you have something that sells to more people that more people want, which is what it sounds like this is. Does that sound right?

[Caller]

Yes.

[Alex Hormozi]

Okay. More people want it, so we have higher conversion rate. Fine. Is lifetime gross profit on this offer superior to the other offer given the back end?

[Caller]

Absolutely. Yeah.

[Alex Hormozi]

All right, well then, yeah, you have. Then it's a superior model, fundamentally. So more people want it, more people convert, and they're worth more. That's a no question. And so then the issue that you're going to deal with right now is you just have transition from the old business to the new business. And the way that I want you to do that is just keep selling this on the front end until eventually this surpasses the total revenue and profit of the other business. And then basically just don't replace the customers on the. On the done for you side. Okay. Just don't replace them. Just keep selling this instead. Does that make sense?

[Caller]

Yes.

[Alex Hormozi]

Okay.

[Caller]

We're looking to just get like a small group that can eventually become, you know, the next Alex or mostly done for you.

[Alex Hormozi]

Oh, cool. And then all you have to do, by the way, is if you get done for you clients, just sell them into the base of these other podcasts and then just take a spread and then you have 100% margins on that. Cool.

[Caller]

Got it.

[Alex Hormozi]

I thought that was pretty clever. All right, rock and roll. Appreciate you, man. Thank you for donating books. And thanks, Sergeant. Thank you, dude. All right, see ya. All right, Christian Stubbs, We've got the man, the myth, the legend. Christian, if you're watching, we're calling you right now. So we've got the Michael Jordan of real estate, so Onyx Homes. All right, I got the Michael Jordan right here on the line for Everyone who's watching Sharon is president of acquisition.com and he was president of Real Brokerage, which is they did $1.2 billion publicly traded company that literally does real estate agents. And before that, he sold Telus, which went from 50 million to 3.4 billion, also in the real estate agent space. And so I think he might be able to help you out, Christian. I'm just gonna throw it out there, Eric, and thank you for donating 800 bucks. I'm getting you on demand with the goat himself. All right, so talk to us. So, six. Six. Six million. Top line right here. Six million tops.

[Caller]

On pace.

[Layla Hormozi]

Two.

[Caller]

Six and a half. Ish. This year. We did four last year.

[Alex Hormozi]

Ish.

[Caller]

We're a team model, so we are lead generation for agents. Right. So we generate leads for our agents, and then we're a Zillow flex team. So it's a big chunk of our business. And they. They take a big 40% referral fee off the top. So our main focus has been, we're going to your BAM days. Our big focus has just been basically in house deal flow that does not have a referral fee attached to it.

[Alex Hormozi]

Okay.

[Caller]

The question I was asking for you specifically, Alex, was more of a strategy.

[Alex Hormozi]

Question on.

[Caller]

Should we add on, like, the traditional brokerages services outside of just our team model, which is more like the real model, if you will.

What do you mean? What do you mean by traditional brokerage services?

Yeah, so we run the traditional team model. And then like, if a. If. If somebody's basically not a fit for the team and just wants to be a part of a brokerage.

[Layla Hormozi]

Right.

[Caller]

Would we want to do that?

Yeah. Why would. Yeah, yeah. So if you have the infrastructure. If you have the infrastructure already, then you allow for that. So I'll tell you how to think about it. You want to think about it as a minor league, major league model. So the minor league, major league model essentially is like, hey, if I, Sharon, am doing well in the minor leagues, you promote me up to the majors. And for some reason, if it doesn't work in the majors with your team model, where you get all the lead flow, etcetera, then you get me back to the minors. And when I'm in the minors, I still get all the other services, but then I see the guys in the majors doing well, it gives me an aspirational frame to do better. So that minor league, major league model does really well in this process. As you grow, what you want to add is also a JV model. So you get the new Agents coming on board. So if you can get a new agent development program, then you have a JV model, a minor league model and a major league model and you have a clean ascension among all three.

Got it. That makes sense. And you would use the team as the team is the major, obviously.

Oh yeah, absolutely. No, any whatever brokerage is fine. But however, I would tell you this. You want to get your Zillow portion to a third or under of your business and keep it there because that 40% referral fee is not going down anytime soon. That is 40% off your gross margin immediately. And so now you're doing 40% off. So $100, take 40% off with the $60. Even if you do a 5050 split, that's $30 each. And then they have tax of the average agent's making $15 and $100 commission, which gets not fun very quickly.

[Alex Hormozi]

Yep.

[Caller]

Yeah. I mean that's our entire focus like from the VAM days. That's all we're doing.

[Layla Hormozi]

Yeah.

[Caller]

And a very easy way in your minor league model, you can cap them out too. You can just say, hey, once you pay $15,000 to the brokerage, that way you know that you can expect $15,000 or whatever from a cap person always contributing to a brokerage for the same.

[Alex Hormozi]

Amount of flat fixed, it becomes super sticky.

[Caller]

Yeah, for sure.

[Alex Hormozi]

Rock and roll.

[Caller]

Yeah, for sure. I was gonna ask on, on geographic expansion where we're looking at branch under our adjacent market from Orange county out to Riverside.

[Alex Hormozi]

Yeah.

[Caller]

What should I, what should I be looking out for? Knowing this is the first, first expansion for context, we have 72 agents. Yeah, yeah. That we've grown to in two years.

[Alex Hormozi]

Here in Orange County. That's awesome by the way. That's awesome.

[Caller]

That's awesome. The key part of expansions where expansions break is that they don't have the ability to duplicate your current model in the new expansion market. So you have to pre fund a little leadership in the expansion market. Otherwise you're not going to, you're going to say wait, how do I not have a home based expansion? Why am I not getting the same results? So if you, if you just think that the mothership is going to serve the expansion, it's going to be difficult because geographically that market's not as tight. So if you can get a local market leader that can then train up and duplicate your model, then it will work. Otherwise it gets very hard to duplicate the model that you've built in a new market. You think you can, but there are Market specific dynamics that are super difficult to do. So what if you can get a leader there and that leader can duplicate in, that can duplicate your model, then it works better. So I would do top down in that market, not bottom up.

That's exactly what we're doing.

Okay, good. Awesome, man.

[Alex Hormozi]

Congrats, Brad.

[Caller]

Thank you so much for the donation.

Awesome. Thank you guys.

[Alex Hormozi]

Appreciate you man. And thank you for, on behalf of the entrepreneurs who are getting the books. So thank you. You man.

[Caller]

Yeah, absolutely. Oh, by the way, your AI gave exactly the same answer. Shawn just did.

[Layla Hormozi]

Amazing.

[Alex Hormozi]

We're, I'm, I'm, I'm replaced. I am unnecessary.

[Caller]

We are on brand, which is good.

[Alex Hormozi]

Yeah. Well, dude, I appreciate. Thank you, thank you. I appreciate you. For anybody who's curious, the AI that he was referencing, that's what comes with this. So if you donate over 200 bucks, you get acqai, which is 226 one on one consultations that we did with 226 different businesses. So if you're like, oh, I wonder if it'll work for my business? We probably did. Not only your business, but multiple businesses like yours. It's like, wow, that was the advice that somebody who was in the same space got directly from you guys. It's like, yeah, there you go. Our very pretty representation of this. Because a whole stack of notes probably isn't as compelling, but. But yeah, no, it's, I mean this is, we spent two years training this because listen, we own an advisory practice, so we are AI enabled. And so my entire life I've always just made more by giving away the things that serve me than holding them back. And so you guys can get access to this, which is what our team internally uses to analyze businesses. Because I was like, how do I take all the years of owning physical products, SaaS, B2B services, B2C service, brick and mortar. I've owned all these different businesses in my life and I was like, well, like I have lived the weirdest entrepreneurial journey because I've had all of these different experiences which has only made me suit like best suited for one thing, which is like to help other entrepreneurs. And so I put all of that in here so that this can basically know as much as I do and can give you answers specific to you and your business. And so if you donate 200 bucks, you get that. You get the 12 playbooks that are there, the lead system, the sales system, the delivery system, and the profit system. Because there's the big four biggest constraints after doing a thousand plus deep dives with businesses. So paid $35,000 for our team to do an analysis. Those are the big four problems. And most of those problems don't have one solution. They have multiple things that have to get solved. But we put all those solutions there. And then we also have an HCQ implementation workshop which is next week, actually, and so that you can actually learn how to use the tools to actually, you know, help your business be constrained. So that's all. If you donate 200 bucks, I, I like. That's because he brought it up. That's why. And I know questions in the chat. Okay, beyond that, I saw a couple other questions in the chat. Lost chapters. This is gonna. Everybody who showed up, you'll get this on Tuesday. So all the free stuff that was on the launch will come to you on Tuesday. So today's Monday, so it's tomorrow. Okay. And the reason for that was because I just didn't want to distract people. It's like we're focused on the launch and then after that, everyone get all the, all the free stuff on that day. So Tuesday you'll get this. Now, other people asked audiobook. The audiobook is also a part of the free stuff. The free stuff comes on Tuesday. Beyond that, thank you for the Chris. The Chris Brown I saw many of you said the song is Kiss Kiss by Chris Brown. So thank you. Noted. Also, some of you guys asked about the timer. So the timer, I don't know if it's above the screen somewhere, but the timer is that this launch offer, which is if you donate 200 books, you get all this other stuff free. It expires when the clock goes to zero, which is midnight to night, pst. So depending on where you live, if you go to sleep before that, then it goes. Then the clock ends when you go to sleep. All right, so that's the deal. And what we're doing right now is we're calling people who are donating books, but you guys requested an extra chapter read. So I'm going to do one more chapter and then we'll call another one. So we're going to do. Let's do this one. Okay, so let me see which chapter. Let's do. Let's do. So much good stuff in here. This is going to be probably used by a lot of you. This is like a. Yeah, the discount you Jed, this is for you. So discount. Discount chapter. Okay, so this is discount plus one time fee. So this is a different structure. I'll show you guys the visual. This is what this Chapter Looks like this is my original hand drawing. By the way, this is not AI. This is just, just Alex. All right, so let me, let me show you how it works. All right? So I was. This is spring of 2015. I was walking out the door from my La Habra location. Sun baked the black asshole of the empty parking lot. It was midday before the afternoon rush would begin in just a few hours. Before I could take a step forward to my car, a man quickly approached me almost out of nowhere. He said, are you the owner? And I was a bit startled. And I was like, yeah. He said. And before I could ask what he wanted, he plowed right into a pitch. He said, my name's Owen. I'm a personal training manager of a gym that just went under across town. I've got a group of trainers that just want to sell personal training packages. We do about 100 grand a month in personal training sales. We just need a facility to work out of. And I said, well, we don't really offer personal training here. I said, half lying because I just didn't want. I didn't like the guy's vibe. He didn't seem trustworthy. So I started to turn to my side, you know, show him that I wasn't really that interested, and began working my way towards the car. And he realized that he needed to change his approach. He said, I promise we're a self sufficient team. I can see through the window that you guys have a lot of dead space even when your sessions are going on. We can just help you monetize that area. It'll cost you nothing. It's just upside. I said, well, it'll cost me time and attention, and most importantly, it'll cost me the goodwill that I've accrued with my customer base. He said, no, no, no, it won't even cost you your customers. Like, if you don't want us to, like, we'll, we'll go get our own leads and sell them. We just asked that you give us a, give them a discounted month up front. And then we charge an enrollment fee, which I give to my guys as commission for the sale. So whatever they can close for, the fee is theirs. That's how we do it. It'll cost you nothing. I said, well, I'll think it over. After thinking over, I decided I didn't want a foreign group of trainers and salespeople that I'd never vetted walking around my gym representing my company. But I did notice the offer structure that he presented, which was a discount plus a Fee. So he clearly seen the success with it. That much I did believe. And this is the first I'd heard of this monetization structure. It both attracted customers with the discount and liquidated commissions and acquisition costs through a fee. So here's how it works. So the description. So you charge a discounted rate for your first term or period of service. You then charge one or more additional fees that you've made up, just like free with fee, which is an old, an old name for a different thing, which is just also in the lost chapters, which you would have read if you have this book, okay, so you can waive some and charge others. Waive them all or charge them all. So it gives you a lot of offer flexibility depending on the strength of the salesperson. So this offer will tend to surprise fewer people since they already came in expecting to pay something. This is why it's a discount rather than free on the front end. Which is one of the key benefits of using discounts over free in general is that people expect to take their credit card out. So let me give you some examples of this. So if you have any kind of recurring services service, you can offer 95% off the first month, you know, $1,900 off the first month or first month for $100. So what I just described there, what I just said was three different ways of describing the same discount. So by the way, for those of you who use discounts, there's multiple ways you can describe it and so you can test out the headings. So like, let's say, let's say I have a thousand dollar a month thing and I offer 50% off. Okay, let's keep that 50, you know, super simple. So if I'm advertising, I can say 50% off first month, number one. Number two, I could say it's $1,000. So I could say $500 off instead of 50% off. I could also say, well, I used an exact 50, 50 split, but I could also say $500 for the first month. So I'll use a different example of $1,000, but now 20% off. So I could say 20% off first month. I could say $200 off first month, or I can say $800 first month. All three of those are different ways of making the permutations work. Okay? And so if you're doing any kind of discounts, and if you follow the way I do it, I prefer all my discounts to be 50% or higher. And because for me, a discount has to change behavior. So if someone's, if 10% discount, 20% discount, like it doesn't like in my opinion, people are already going to buy and you just gave away margin. I have to have a discount that's sufficient enough that's actually gonna get somebody to buy or get interest. You otherwise wouldn't be. And that's how I think through discounts. And so if you're like, why don't want to discount my service that much? It's like, well duh, we don't discount our service that much. So what you do is let's say you've got five things inside of your service. You say instead of saying I'm going to give you 20% off, we say I'm going to peel this thing off and then make this thing 80% off. And then these are still 100%. Does that make sense? So you give the 80 and then you upsell the four. That's how it works. Now those are two examples that, that's how you think through displaying it. So monetization. So I gave you three examples. Here's how you monetize. So they come in for the first month for 100 bucks, but they still get charged a setup fee. And so all in all, they'll get charged whatever you want as your setup fee even though you gave the big super discounted first month. And then they go straight into recurring. And so from a monetization perspective, you just add up the discount plus what you charge charge for the four and then you put that together and that's how it works. All right, so that's if you have a recurring service, if you have a defined end or a program like six weeks, 12 weeks, whatever. We had a physical therapy earlier. My, my buddy Cameron, like he is a defined end service. Like we have to do, you know, X period of time. You would say to the same degree, 88% off the first month, selling a 12 week program for like $3,000. This is like perfect for what he does. Okay, so monetization, so you say it costs $1,000 a month for three months, but you get 88% off your first month. So that's only $120. And we have a thousand dollar setup fee. So they end up paying $1,120 for the first month and then continuing their next two payments for $1,000 each. And so we just did this. That's all it is. Okay? Now you have to listen to whatever laws in your area in terms of advertising compliance, all that stuff, it depends on, on every nation Every, you know, local area that you're in. But as long as you follow the law, that is how that works. Now let me give you a couple of the details, some of the specifics. So the higher one time startup fee, the lower the churn. Alright, this is where the concept of big head, long tail kind of weighs in here. The higher the barrier to entry, so too becomes the higher the barrier to exit. So John told me. So John was an early mentor of mine when he had a tanning empire, he said he had $100 sign up fee for a $10 a month membership. He said the churn on those clients was next to nothing. Whereas the clients who sign up for $19 down and then $19 a month turned at a way higher rate. So this means you can use made up fees that we've been talking about, well talk about in this book, to actively decrease your churn and increase the investment of your prospects. So this helps them and you in the long run so everyone wins. So when people pay, they pay attention. So this is especially important for services where you require something to be done by the customer, getting your information, filling out forms, showing up at certain times, making selections, changing behavior. So like physical therapy would be an example of that. So if you need someone to do something in order to be successful, then the more times than not it makes sense to charge a one time startup fee of some kind to get them invested in the long run. Alright? So you even have a massive disparity between you can even have a massive disparity between the setup and the recurring fee. So a good friend of mine who runs a multimillion dollar online weight loss coaching business, charges $5,000 to start and then only $267 a month thereafter. Think about that five grand up front and then less than 300 bucks a month afterwards. Now his client lifespan is more than two years in an industry where people turn out normally in like three or four months. And so this large upfront son gets clients invested in the process and makes leaving almost insane. It's like I just paid $5,000, why would I ever quit, right? And so you guessed it, if they leave and want to come back, they have to pay it again. So it keeps these people committed, especially when they have to do their part of the work to achieve the result that you sold them on. Whatever that thing is. Now to be clear, whatever the reason is for the one time fee, even though it's completely made up, just be clear about it, okay? This fee should not be taken lightly. It's also something that you should bring up with, with, with every customer you are doing the work. So you might as well let them know exactly what you're going to be doing for them. So again, here are the four steps to creating a one time fee. You pick, you pick your fee name, you pick your fee price, you pick your reason why, and then you start charging it, discounting it or waiving it. That's how it works. And you know what's really interesting is that even having the fee is incredibly powerful because even if you never even want to do it, you can literally waive it for every person who walks in the door and they'll be thrilled. At the very least, like they'll just be thrilled that you did that. So think about it differently. I could say you get $1,000 off signing up for my thing because I invented an offer onboarding fee and then when people come in, I have now invented this fee that I will also not charge them. And then, then you can go straight into continuity. Okay. Again, you have to, you know, listen to whatever the advertising laws are in your, in your region or area. So consult, you know, somebody who does legal stuff like that.

[Caller]

Can I ask you something?

[Alex Hormozi]

Yeah.

[Caller]

So there was, there's two notes, one a comment and a question for you. The comment is if you, if you noted what Alex said, he talked about the discount actually having to change behavior in some way. So just don't think that hey, I'm just going to do this 5% discount and it's going to work in some way if the discount in your opinion is not going to change behavior. As Alex said, you're just giving away margin. So please consider that the second thing. Alex, love your comment on this. There are several thoughts on the chat about hey, I just don't discount. So how do you respond to that? Is your thoughts around that comment?

[Alex Hormozi]

I think it's fine. I mean like it's a business decision. It also depends on what you do. You know what I mean? I like there's promotional. So what I don't do is I never present a price and then change it. That is how I that like to me that is where you lose leverage and then you enter these haggles. So the price is the price. We've already calculated the price and the discount is also the discount. So it doesn't go up, it doesn't go down. That is what it is, period. And so that's kind of how I see this. But no, I, my strongest, not the thing that I'm most against is, hey, It's a thousand bucks. And then why can't afford a thousand? You know what, I'll do it for 900. Hate that. Never do it. You'll lose all the credibility. It's like, wait, so you would have just gotten me, you would have bought it for 900. Like now I hate you. Now I think you're like, well, why do I believe 900? Why can't I get it for 800? Right? You open up this can of worms. But if you say this is a thousand today it's 500 and then tomorrow it won't be. You dictated the terms and so that's up to you. But if you don't want to, like, like these are all like all of the stuff that we are mechanisms. They're different things that are suited for different businesses. And you'll also note this is from the Lost Chapters, which is things that I didn't fit for every business. The Money Models book contains the mechanisms that I think work for the vast majority of businesses that you won't have a real problem with. Now I did see in the chat, do we get any free stuff without donating books? Yes, I get four free things, not just one. I get from four the Lost chapters for anyone who is there live. Alright, so you get an email with that stuff. For those of you registered for the launch, the Money Models audio is free and you'll get it in an email if you registered for the launch. The Money Models course, which I think is like eight or nine hours, the whole system, that includes every single one of the attraction, offers downcut, downsell, offers upsell, offers continuity system, all that free and you get 90 days of school to use it free and a lifetime lower rate of $9 a month afterwards. Okay? So all of that stuff comes tomorrow. That being said, all the stuff you see in this frame is if you donate 200 bucks. And the reason for that is because I'm trying to get as many books donated as possible so I can get a book in the hands of every entrepreneur in America. That's the big goal. Okay? Now that's why we're doing this whole thing. That's why we're doing this drive. But the big clock at the top, when that strikes zero, all of these bonuses disappear. So if you've been on the fence, you're a last minute person. This is the last minute. Okay, okay, let's call, let's call, let's, let's roll. What do we got? We got, we're bringing that back up. Okay, here we go. So let's go with survey says. Survey says. All right, we got some more eight hundreds. Okay, we've got an 800. Here we go. Okay. Andrew Johnson, you started at 800. Thank you so much. We're giving you a call.

[Caller]

This is Andy.

[Alex Hormozi]

What's up, Andy?

[Caller]

Hey, Alex.

[Alex Hormozi]

What's up, dude? Ocumed.

[Caller]

Yeah, that's my business.

[Alex Hormozi]

18 million, top line. Congratulations, dude. Stud. Stud status. Okay, 1.5 million, bottom line. Heard. We got five minutes. What's your, what's the constraint? What can I help you with?

[Caller]

Sure. So brief context. We do employment, medical evaluations. Mostly we're selling to large companies or large employers, Cities, counties, defense contractor agencies, those types of companies. Our best client is going to be someone who's geographically dispersed because we manage network providers all throughout the country and then in about 50 other countries as well. And so it's kind of our target audience. It's a fairly cost competitive area. We mostly get clients through competitive RFPs, occasionally through Word of mouth. We're currently doing next to no advertising or marketing. We basically grow through word of mouth or the occasional trade show and process. I think one of the challenges is two challenges. One, I think we need a money model, an improved money model. And so I'm excited to get my hands on this book and work through some of that and something that can bring clients in a little bit more easily and then over time, you know, increase the, the ticket price. Because right now it's a, you know, we're perceived as a commodity in lots of instances, but how we operate is very different. We have really good customer retention, like 95% plus.

[Alex Hormozi]

Yeah.

[Caller]

And so, you know, if we can service them in any form or fashion, then we typically can keep that going for, you know, years or decades.

[Alex Hormozi]

Heard.

[Caller]

So aside from my model, the other thing that I think we could use is better awareness. I think, I don't know people outside of our specific niche in defense contracting.

Know who we are.

[Alex Hormozi]

Heard. Yeah.

[Caller]

And so I, I'm looking at potentially getting into some sort of, you know, content creation. Leadership. Yeah, yeah, Exactly.

[Alex Hormozi]

Yeah.

[Caller]

Probably LinkedIn being asked. B2B is our, you know, business. So no experience in that whatsoever. Don't post content at all and on with the experts.

[Alex Hormozi]

So, so you got, you brought up three different things. So I want to like, let's just take them one at a time. So one, there's the, like, I want to basically increase the brand. So I have, you know, more pricing power and more inbound, inbound deal flow. That's number one.

[Layla Hormozi]

Right.

[Alex Hormozi]

I'm doing this in reverse order because I'm just rewinding what you said. The next thing is that you need, you need pricing power. So you were selling commoditized, you know, good. And so it's like, how can we create more pricing power? So brand is one element of that and the other is just the value itself. Right. And so I don't know if you've been on this live stream that long, but the problem that you're having is a super common one. And basically we need to pick one angle so that you can decommoditize. And so Shroud and I were talking about this yesterday for different business. But it's like you have the price and then you have, you have. Sorry, you have the service and then you have the consideration. Right. And so we only have commoditization. And I know you have to respond to an rfp, but there's still the benefits that you can throw in on top that make your service different because you can still win in RFPs without it being lowest price. So do you think you can win on speed? Do you think you can win on ease, or do you think you can win on risk more than anybody else?

[Caller]

Yeah, I think we do particularly well on risk and speed.

[Alex Hormozi]

Okay, so then basically again, I sound like a broken record with this particular thing because you want to get stats to demonstrate the cost on a global level. And so the big thing is that you want to approach their business from a holistic perspective rather than try to win on a component of the business. And so when you can look at the whole system, you can start pricing against value, which is what they are ultimately deducing from the rfp. But they limit the scope because they think that by doing that they're going to get the most competitive bids. But you just need to have a better understanding of the business overall to understand the other levers so that you can reframe the pricing so that you can decommoditize against the other, other bids.

[Caller]

Yeah, so I think what I'm hearing you say is like the proof of how we save the money through other things that aren't our price, but that they're spending money on. They're just not captured in the fees that we charge.

[Alex Hormozi]

Can I give you a hack?

[Caller]

Please.

[Alex Hormozi]

At the end of your rfp, put one to three case studies, or ideally the case study that is most similar to the client that you are, you know, that you're bidding for and then have that client do the sale for you. Like even though they weren't the cheapest. Boy, did they save me the most money. And this is how they did it. Speed and risk, you know what I mean? And then they hit on the buttons that you hardcore focus on within the rfp.

[Caller]

Awesome.

[Alex Hormozi]

Yeah. So you'll win more bids just by throwing that in. What's crazy is that someone like no one does that. Correct. It's like no one does it.

[Caller]

Yeah.

[Alex Hormozi]

Do you want to throw some in truck?

[Caller]

Yeah. I have one idea. By the way. The case study closes. Whenever you think rfp, think case study close. That is the. Because everyone reads the RSP and all the folks in the RFP mode are instantly and I commoditized like I'm looking for the price mode. But once they see that and they also see the case study, then if the delta is not that much, you get the win. The second thing, I don't know if you can do this, Andy, which is is there any way to include a provision in the RFPs which we've suggested in the past, where any new services that you can probably do consulting for that you would automatically charge those at a 25% discount. And all that it means is that you're opening the door for consulting one time consulting opportunities that you can do during the term of the rfp. Rfp and they're like, oh my, Alex is such a good guy. Even though he's not only giving us his rfp, if he chooses to do one time consulting within this we can also get a 25. So sometimes what I found there is once you get, you can still get a one time kind of consulting job which you can then turn into adding to some recurring revenue after. Is there maybe that's an idea.

Okay.

[Alex Hormozi]

Also, depending on the size of the business, you've probably seen this before. But it's significantly harder to get approval to get the bids start to get the money flowing. But once the money spigot is turned on, it's much easier to adjust scope and get an increase in budget than it is to get the budget turned on to begin with. With which is what. What Shron's doing with kind of like you, you have your RFP thing one, which is what everyone's doing, but then you add in the case study piece which is thing two, which differentiates a little bit more and then basically resells the primary sales points of the rfp. But then in addition to addition to that, you're saying, hey, don't worry about it. I also have this, you know, one off consulting. So if you do find someone cheaper I can help you bridge the gap. But now your foot's in the door. And then you can cross sell their services. But now you already have a rider there and so they can start Jack, you can start basically inserting yourself and these other process. Again, this depends on the size of the business and how the procurement process works. And if you're curious, anybody's watching, like why I have any knowledge of this. The first thing I had out of college was I did space cyber intelligence for boutique strategy firm and we all did was was public sector contracts. So the RFP world, I told you I have this very odd mix of.

[Caller]

But I think the way to think about. I think you nailed it. The way to think about it is every time you're selling something to a client, if you're in a sales process, your if you should be thinking about it from a value frame as to what can I hit? And you should be thinking about from an RFP on the floor.

[Alex Hormozi]

Yeah.

[Caller]

Every sales process people are always like, well, what is my usp? No, they're thinking about it. When people walking in, they're saying some are RFP minded buyers. So you have to have the RFP frame on the bottom which whenever you think RFP frame, think case study close. And then when you have the value frame, you can say, hey, here's all this other thing I can do for you. So if you just approach any sales conversation as a synthetic RFP conversation, your chances of winning go up significantly.

[Alex Hormozi]

Yeah, it's like the frame that and like I think giving great examples of this of like when we want to set the frame for the entire conversation, like the first paragraph of an rfp, obviously you have the pieces that are required, but I want to set the frame as early as possible on this so that I could say like this is how we approach these things. Like if someone were to say, hey, get me the cheapest leads. You don't actually want the cheapest leads. You want the highest ratio of dollars in to dollars out from customers which might not and very likely will be not the cheapest leads, but the best leads that convert at the highest percentage at the highest prices. Right. And so again it's like we have to have some very simple analogy that we can reframe and decommoditize ourselves. So it's like listen, you want the best return, not the lowest price.

[Caller]

Yeah, understood. One question about the case studies. Close.

[Alex Hormozi]

Yeah.

[Caller]

Is it effective if I can't disclose the customer? Like they won't actually do the talking for me and have to Anonymize it.

[Alex Hormozi]

No, I think it's fine. Yeah, it's fine.

[Layla Hormozi]

Yeah.

[Alex Hormozi]

And you also whitewash it too.

[Caller]

Yeah, you can whitewash it. And the way to do that is to provide as many metadata details as possible about that customer. So, like, for example, if you see, you know, Alex will talk about providing proof in a testimonial. If you cannot put Alex Hermosi, you can say, ah, Baltimore, Maryland. Right. You can. Do you want to go as close to providing the reasonable believability of that testimonial as possible? So get as close to it as you can.

[Alex Hormozi]

So. Because I know you donated 800 bucks, so I appreciate it. But inside the proof playbook that's in the sales system that you have for free, there's the 13 point proof checklist. Basically, when you're going through the case study, check off every single one of them that you can. That's just not the name.

[Caller]

Makes sense.

[Alex Hormozi]

Cool.

[Caller]

So good, man. Hey, I want to say one last thing for everybody, just for them to understand. People will talk to Alex, will share with you a lot, saying, you know, I need to build a brand right away. But this is a great example of building an awesome business. And he said that I've never posted any content. You can still run a great business. So first off, kudos to you, man. Like, you built a great business. Yes, it's in. Yes, it's a little commoditized, but you have now have a chance to. You have dry powder to build and stack a new money bottle on of top of it. So kudos to you for building this. It's a great example for others to saying, hey, you don't need a brand all the time. You just need a great money model.

Well, a lot of what's happened recently has been secondary, I think, to some of the readings and learnings from Alex. I really appreciate you and Tron, your advice today and in the past, it's gone a long way. And so I think you're really hitting the mark in terms of helping entrepreneurs.

[Alex Hormozi]

Thanks, man. I appreciate that.

[Caller]

Thank you for donating to Dave.

[Alex Hormozi]

All right, thanks, sir. Talk soon. Best luck with this. Let us know how it goes.

[Layla Hormozi]

Thank you.

[Alex Hormozi]

All right, all right. So that was. I think it was Andy. Yeah. So now we're gonna go. Cody, stocks to trade.

[Caller]

Ooh.

[Alex Hormozi]

Oof. Oh. Rah, rah. Stock to trade. What is this? All right, we got some. This, this. This could go. This could go in a couple directions. We'll see 84 million, top line.

[Caller]

Hey, how's it going?

[Alex Hormozi]

Mr. 84 million top line, let's talk.

[Caller]

Well, you know, I wish I owned the company. I'm just a CEO here. Just to clarify. But I want to ask you, you know, in, in that kind of position, one of the big things is product. Right. One of the big parts of product is like, before you even get to the author. Right. It's like when you're building the product.

[Alex Hormozi]

Can you tell everybody what the, what business you're in real quick?

[Caller]

Yeah. So we're like, if you think of Trading View, just plug in a different name.

[Alex Hormozi]

I don't know what Trading View is. Is it like a stock trading platform?

[Caller]

No, it's just like a charting platform. So.

[Alex Hormozi]

Okay. Just go in like candlesticks, etc.

[Caller]

Okay.

Yeah.

You know, what we really offer is like tools. Right.

[Alex Hormozi]

Okay.

[Caller]

And then education on how to use the tools. Okay. Obviously never advice.

[Alex Hormozi]

Okay.

[Caller]

Just gotta, you know, put that out there.

[Alex Hormozi]

Yeah.

[Caller]

The, the big thing though is, you know, we're, we've already tapped into like, using customer. I'm like, well, what do they want? What's next? And so now it's going beyond, like, what are they asking for? And trying to figure out the step, like the step beyond that a little more of like a visionary of like, before they even know they want it, you come up with it. Right. And we've had a couple of those. You get some grand slam offers. Yeah, they go really well. Okay. You know, but yeah.

[Alex Hormozi]

Are you owned by private equity or by founder?

[Caller]

By founders.

[Alex Hormozi]

Okay, got it. Okay.

[Caller]

So it's, you know, the big thing.

[Alex Hormozi]

Is.

[Caller]

Like, what's a model, a framework, a method for finding that lightning in a bottle.

[Alex Hormozi]

So interesting because I have like such a different angle on this.

[Caller]

Yeah. Do it yours.

[Alex Hormozi]

Yeah, yeah. So like, I think, I think, thinking like, okay, how do I, you know, revolutionize the space? It's so like you've gone to, you know, how old is the business?

[Caller]

Oh, geez, like 2009. Okay. Whatever that is.

[Alex Hormozi]

So it's established. And you've. Have you been growing every year?

[Caller]

Yeah, about 50% for a couple. And then, you know, we'll see.

Still good.

[Alex Hormozi]

So I'll give you my honest opinion. My honest opinion is like, I wouldn't break something that's working really well and growing 50% a year. Because like, all of the, all of the extra effort of like, I almost fell over my chair. I was. Yeah. All of the extra effort of like, where is this lightning in a bottle? I have found the lightning in a bottle. Comes from looking at my existing thing. That people already want and like, and turning it into something they already want and love. And so let me break that down from a tactical perspective. So I think of creating excellent products as looking at the end state, looking at the end goal, and then saying, how do I remove everything that sucks about getting this outcome? And so I think about excellent products as removing 100% of friction rather than how do I make something that's new and exciting? Because marketing is about new and exciting. Product is about the thing that everybody already wants, but not. But removing everything that sucks about getting it.

[Caller]

Yeah, yeah, 100%. And I think one of the, one of the big things is you have to tell everyone it's hard, right? Like you have some sort of regulation, of course, constraints. But like with the product, you know, our biggest hits happen when you figure out how to put the magic potion together and it takes all the friction out of it.

[Alex Hormozi]

Okay.

[Caller]

And, and you can, like you said, then the marketing does a great job of finding all the reasons why they should buy, but trying to, trying to find like, what's that next product that could be that same potion but in a different area. Right. And there's so many actors in our industry, like, I'm not just limited by, oh, well, we did it, it's done.

[Alex Hormozi]

You know, I have a good question.

[Layla Hormozi]

Strategy. Yeah.

[Caller]

A question for you. So do you think that if, if we could take your current product out in and of itself, it works. It looks like it's working well. And could you. I'm assuming based on that it's a technology platform, could you add more users to it and marginal cost for that is zero. It's. It's a tech margins. Right?

It's definitely not tech margins. I wish. Oh, but it's, you know, the cost to acquire a customer is pretty. You know, one of the first things I did when I came in is we moved cost to break even from 90 to 10 days. That's great.

[Alex Hormozi]

Okay, that's great.

[Caller]

And then, you know, then we have to make a decision like, how do you grow 50% is you just choose not to make. Make money.

[Alex Hormozi]

Right.

[Caller]

And you're like, okay, well, you can afford to spend more.

[Alex Hormozi]

Well, do they stick? Do the customers stick? Yeah.

[Caller]

Yeah.

[Alex Hormozi]

Well then, I mean, if that's, if that's the case, then I mean, kind of that is the game. I mean, you're just trading like, so, I mean, I'll tell you something that a long time ago mentor explained to me and like, this may seem obvious to you, given you that you're in the space that you're in. But I'm also saying this for everybody else who's listening. So let's say simple math, right? You know, $100 million a year and you've got $10 million of profit. All right, that. Tell me dollars in profit. If we take it as income. Right. We're going to, we're going to keep, you know, $6 million of that. Right. And then, great, now we put it into the S and P, we put it into real estate, put in whatever. Right. Alternatively, if I take that $10 million and then I put it back into advertising and that $10 million turns into, let's say first, first year, it turns into $30 million of revenue. Does that sound realistic for your business?

[Caller]

Yeah, it's essentially what we did.

[Alex Hormozi]

Okay. No, no. Yeah, let me. Yeah, let me. Yeah. So 10 million goes in, 30 million becomes revenue. And we're valued on EBITDA. Right, or you valued on top line.

[Caller]

We're probably closer to top line. There's some multiplier that's fair.

[Alex Hormozi]

So if we're. Yeah. So if we're measured on top line, then we just created $60 million of enterprise value from the 10 tax free. And so to me, it's like I'm choosing option A. I could take $6 million net of tax and then put in the S and P and let it grow by 10% a year. Or I could take the 10 and then turn it into 60 tax free in that same period. Now, obviously, there's the only real question there is risk tolerance. This is like, how much am I willing to, you know, bet more on this existing business? But from a dollar, you know, a dollars and cents perspective, I mean, it's a 10x difference.

[Caller]

Yeah.

[Alex Hormozi]

So that's, that's how I think through these things. In terms of your question of, like, if I'm the founder, and I know you're not the founder, but like, if I, if I were the founder and I'm making this decision, it's going to be 100%. The question, the question is down to the founder's appetite for risk. Yeah, fundamentally. But, yes, if I were in your position and I did say, like, I want to go take the hill, I'd be like, well, let's just take the 10 and then put it in and go from, you know, 84, which I think you're at, to, you know, 110 or 120, and that would be the, that would be my approach. Yeah.

[Caller]

I'll give you one product hack that you that you shared. So anytime you're thinking about, hey, I need a new lightning in a bottle, I'll give you a very simple hack to think about the world, right? Take your business and essentially think about it as an analog, like, think about it like a course, as a done kind of do it yourself. Where, hey, I get in here, I do these 10 modules, I do this 10 effort, and then at the end I get this Y result. If you map that 10 modules out, then and you have a product or a system, you can say, which of these 10 modules does this product or system solve? So now your, your product development is actually tight to your marketing too. So you can go to the marketplace and say, if you were a trader, you would want an analytics platform. You'd come in on day one and you'd have to do these 10 things over three months to get this X ray result. I need to have to do all the work. Instead of doing these 10 things, you only have to do the these three because these seven things the product already does. So anytime you want to hack product development, you want to think about it as, how do I give people a clean path and then take away things from that path that the product does? And that allows you to probably iterate on that faster.

[Alex Hormozi]

Yeah, and following. And I'm sure you do screen recordings and like, you know, vigorously, like, watch people actually use the product. But like, that is where all the big innovations in my life have come from, from a technical perspective, which is just like watching people stumble, like, literally watching people over the over their shoulder and like, watch them get stuck. And the thing is just, it's sometimes like the hilarious things that are tiny that create the friction that end up, like, ruining whether something successful or not.

[Caller]

Absolutely. I couldn't agree more. I really appreciate the help today.

Yeah, man.

[Alex Hormozi]

No, I appreciate you, man. Congratulations.

[Caller]

Yeah, great job, dude.

Thanks.

[Alex Hormozi]

All right, Rock and roll. Okay, so real quick, my screen here turned off. I don't know if you guys know this, so I'm flying blind right now because I want to see, you know, what's going on. But I'm going to wager, I'm going to wager that some of you guys would like to hear. Actually, I'll do. We'll do one. We'll do one more, and then I'll do. And then I'll read some stuff if you guys want. So let me know in the chat if you guys want me to read stuff after I do another call for those. You guys just bought books. Okay, so let's see who who just. Oh, we just got another donation. Okay. So let's go. Excuse it. My phone's blown up. Okay, hold on. Let's go. Sean Clayton. Okay, so, Sean, if you're watching, I'm calling you right now. All right. Just donated a book, so. Thank you, Sean. Science of abundance. This could go. This could go either way. Let's find out. Science of abundance, 500k, top line. 300k bottom line. For anyone who's watching at home, this is Sean. Okay. 500K top line. 300K bottom line. Science of abundance. We got five minutes. Formosi hotline. What is the thing that is limiting your growth? How can I help?

[Caller]

Well, great to meet you. Thing that's limiting my growth right now is I feel like the initial version of my offer when it goes out to market, is not as sexy as it possibly could be.

[Alex Hormozi]

Okay.

[Caller]

I have a spiritual coaching practice.

Okay.

Oftentimes people don't really hook into that.

[Alex Hormozi]

Really quickly because it's.

[Caller]

Stick to ethereal looking to make it systematized, clear to the point to where it just. The way they understand what they're getting, they understand the value they get out of it, and then spinning off a very specific offer that allows for exponential growth.

[Alex Hormozi]

What do they get? So currently, what they get, not the features, the outcome.

[Caller]

The outcome is a centeredness. It's a true centeredness that is removing the patterns that they've had in their life. The childhood trauma cycles that they've consistently been in.

[Alex Hormozi]

That's what they get.

[Caller]

Like, they. They actually truly understand the level of awareness to where the consciousness that they have been taught into. They break those cycles and they walk through the door to understand the depth of themselves.

[Alex Hormozi]

So it's behavior change. True.

[Caller]

Yeah.

[Alex Hormozi]

Okay. Got it. Thank you. Great, great. So you. You do bad stuff. Stop doing bad stuff. You want to do good stuff, start doing more good stuff. Yes. Fantastic. Okay, So I think, you know, I think. I think I would just. I think. I think you probably just need to change your vocabulary because even the name of the. Of the. Of the company, Science of Abundance, and then you said that we teach. You have a spirit. Spiritualist things. What?

[Caller]

You said centeredness.

[Alex Hormozi]

Centeredness. Yes. And centeredness again, it's like we have a big issue of definition of terms. And so I would say I'm an objectivist overall, in terms of how I see the world, which is why I think people enjoy. I think why I get a disproportionate amount of views and things, things like that on my content is because I try to define Terms. And so I think that right now you might have some people that you are thinking about like this. You're rolling roulette in your marketing and hoping that people who've heard the word centeredness have had a positive experience with that word and as a result make that association with you. There's a very small percentage of people who have done that. The vast majority are confused and have no idea. All right. And so we want to market or in our language, use the lowest common denominator language so that the maximum number of people can comprehend the message and ultimately understand it. And if they understand it, and we're clear, we increase the likelihood they comply with our request, they do what we want them to do. Right. Okay. And so fundamentally right now, how are you advertising.

[Caller]

Meta? Predominantly? I have a social channel. It's about 400,000 followers currently.

[Alex Hormozi]

So they come into that and kind of drop in. Okay, and what do you sell, like price point?

[Caller]

Price point ranges anywhere between, like low end ticket is 97. It goes all the way up to $2,000.

[Alex Hormozi]

Okay. What's the sales process?

[Caller]

Currently? The sales process is literally all online.

[Alex Hormozi]

So there's no. So checkout. Just check out. Okay, but you go like organic to webinar to checkout.

[Caller]

Organic to webinar to check out. Yeah, and there's some paid ads that run around it.

[Alex Hormozi]

And then in the, in the webinar you give them all these different options.

[Caller]

I give them one option.

[Alex Hormozi]

Okay.

[Caller]

Follow them through. So they graduate up into the different levels.

[Alex Hormozi]

Oh, so they start at like a 97 and then they work their way up. Yeah, heard. Do you have any sales?

[Caller]

Yeah, we have sales.

[Alex Hormozi]

Yeah, we're doing average. No, sorry, I used see definition terms. Do you have sales? No, like, dude, this is a perfect example. Example. Do you have salespeople who call the people who buy the 97 thing to sell the expensive thing?

[Caller]

No, I don't.

[Alex Hormozi]

Okay, so I mean, like, well, thing number one is if you just had somebody who called all the 97 people and then sold them a three thousand dollar thing, you would make significantly more amazing. Okay. Okay. And then I would begin the call erasing almost all the language that you're using and saying, what are the things that you're doing in your life that you don't want to. You don't want to do in a anymore and what are the things that you wish you were doing that you're not?

[Caller]

Okay.

[Alex Hormozi]

And then it said like, the point of this call is to increase the likelihood that you do the things that you want to do and stop doing the things you don't want to do. And the good news is we have a five step process that we've done this and we have 80% success rate.

[Layla Hormozi]

Correct.

[Alex Hormozi]

So if that sounds like a bet that you want to make, we'd love to help you out. How's that sound? Fair? I love it. Right. Because I think, I'll bet you a lot of what you're doing is you're using a lot of jargon and a lot of like featuring. And no one knows what that means, nor do they really care. Like they just want the tooth pulled out. They don't care what drill you use. They just want the pain to go away. So I would just focus on, you're doing stuff you don't want to do, you're not doing stuff you do want to do. And we will help you bridge that gap.

[Caller]

I'll give you one crazy thing. And Alex's kind of description around using language is really important because if they a confused mind stalls. Right. And I will tell you personal vulnerability. My therapist stopped calling herself a therapist and started calling herself a business coach for entrepreneurs. And literally her business, her business took off. She went from. She tripled her fees in 12 months just by switching what she did. Because people, not that there's a stigma around it. The average kind of bullheaded entrepreneurs, like, I don't need a therapist.

[Alex Hormozi]

Why'd you point at me?

[Caller]

Me, me, me, me, me.

[Alex Hormozi]

The average bullhead, bullheaded entrepreneur. Yeah, so.

[Caller]

So I just want to reemphasize that Alex is right on with the kind of using the right language, especially if there's a behavior bent to it. Because when you have a behavior bent to it, two things happen. One, it puts some accountability on them to actually change behavior. And it puts some accountability on you to deliver the thing that will help them change behavior. So you get what you promised.

Okay, that makes sense.

[Alex Hormozi]

Yeah. And so once you talk in those terms, then the offer actually becomes one, like for everybody, clarity always like clarity beats like if no one can even comprehend the offer. Like the biggest thing that you can do to increase your conversion rates across funnels, across ads, across emails is just describing things as you can observe them objectively. So I think about, I translate all my materials through like a court filter. So if you're in the court and you say so and so was frustrated, they would say, objection, your honor, because that's not a fact, that's an opinion. What they would say is that when that person came in the door, they spoke At a higher volume. They could say that her face was visibly red. They could say that she was sweating. They could say that she threw something at somebody. These are all things that are observable that no one can question. When we start talking in terms of the amorphous, it becomes really hard to understand. And so I would use all of the observable in all of my marketing and sales so that people know what they're going to expect far more accurately. It'll feel like a superpower. It converts like crazy.

[Caller]

Let me ask you this question.

[Alex Hormozi]

Yeah.

[Caller]

I love that. And I get a lot more clear.

[Alex Hormozi]

Okay. If.

[Caller]

If I weren't able to. If I were doing a challenge to.

[Alex Hormozi]

Get people to come through the door.

[Caller]

Faster, like a 60 day transformational window. Dude, tell me what you think of this because I framed it off of some of the things that I've been.

[Alex Hormozi]

Picking up from you lately. Yeah.

[Caller]

500 bet on yourself.

Yep.

[Alex Hormozi]

Win your money back first offer inside of the attraction. Offers inside of money models and the course, by the way, for be watching it comes out out tomorrow for you guys. It's free. All right, Relax. It's free for everybody. But so when you're. Yeah. The win your money back offer, I think would smoke for this. For this free for your type of business because it's all behavior change related.

[Caller]

Exactly. And so what I'm doing is that I have a. I have a set of things that you do every single day. You submit that into the community. Writing it on school.

[Alex Hormozi]

Yeah.

[Caller]

Give you 50 of your money back if you actually get through 85 of it. And then five people would be voted by the community to where I'm going to give $20,000 to those five people at the end who the community basically uplifts. And then of those five people, they can be nominated to become coaches inside the community. So I built an entire flywheel.

[Alex Hormozi]

Okay. Does that work? I. I like the. Yeah, no, I think. I think there is a little too much. There's three things I'd read like. I. If I were you, I would do. I would do the following. Do the win your money back instead of 50%, make it 100%.

[Caller]

The.

[Alex Hormozi]

The 100% money back is historically store credit, not cash. That store credit then rolls into rollover. Upsell into a year with you. Okay, so $500. Great. A year with me is 5,000. Great. We'll take the 500, roll it towards 5,000. Fantastic. Love this for us. Okay. And then that's front end to back end conversion. Now what are the Things that are required for them to, quote, earn their own money back or win their money back. So thing one, I like the habits and behaviors. That's good. That's what gets them results. The other half of the things that you want to do and win your money back is get them to promote. All right? And so that means now depends on the nature of the service and how people feel about this. So you'll know this part better than me. But I would say at the very minimum, in order to get the money back or win the store credit, you have to leave me a testimonial. Okay, Number one. Number two, you got to make a public post before and after. Number three, you got to turn in your, you know, like, turn in your befores and your after stats. So you can either make a public. I'm giving you different variations of this. So a more watered down version of like, I don't want to post it, it's fine. Then you got to turn in before and afters. And I want them in these formats and I want them on these multiple sites. So I want you to do it on Trust Advisor. I want you to do it on Google. I want you to do it on Yelp. I want you, like, I want you to do it in this Reddit forum, right? Like, these are the four places I want you to post this testimonial. And that is required in addition to the things you have to do to get the results. So the things that someone does are activation related and advertising related. Those are the earn your money back components. And everyone's like, wow, that was a little bit more nuanced. That's why I wrote a book about it. So I would do it from that perspective. And by doing it that way, if you want to get Super Saiyan on it, which I would recommend, why not? I always included satisfaction guarantee, so it's basically a double guarantee. So it's like, not only can you earn your money back, if you for any reason feel like you got $499 of value, when I charge you 500 at any point, you know, six hours or six weeks into this thing, you can ask for your money back. Now, for me personally, I did. I almost never had anyone ask for the money back from a satisfaction perspective because the win your money back frame is so strong that, like, you know, and I only pulled that out if I needed to, you know, close a deal or something like that. Right, Cool. You like that?

[Caller]

What about this? Yeah, I love that. What about this $20,000 giveaway thing? No, too Much.

[Alex Hormozi]

I just don't think you need to.

[Caller]

Don't need to.

[Alex Hormozi]

It. Yeah, you don't need it. Okay, so you're. You're trying to combine. You're basically trying to combine three different attraction mechanisms. And again, clarity, like, down the middle. Right down the middle. Fastball, like, if. If it's a good pitch, they'll swing. Okay, cool. Love it.

[Caller]

Thank you, man.

Thank you, dude.

[Alex Hormozi]

Appreciate you. Thanks for joining the books. Absolutely. All right. Rock and roll. Okay, so we are. We're getting close to. Okay, so at 3.35, I have this stack of. Well, they're somewhere. I have a stack of signed books. The 100 million dollar men will demonstrate what the signed books look like. There they are. Signed copies. So at 3. Yeah, 3.35. We're going to give 10 signed copies away to. Who are we giving them to? Look at these very fancy signed copies. Are we giving them to. Who's qualified for this? Yes, that's right. We don't speak. The hundred million dollar men do not speak like the Green man group. All right, well, he gets that. Thank you, guys. I appreciate it. I know. J. Steel, I'll drop the behavior book someday. Right now, I've got to finish. We got to finish this launch before this timer goes out. So, by the way, those of you guys who are coming on, this is the end of the donation book drive. So we're trying to get as many books in the hands of entrepreneurs as we possibly can. The ultimate goal long term for me is 32 and a half million books. That means one book for every entrepreneur in America. I will eventually get to the world, but right now I'm focused on America, and so do incentivize business owners. Help me out. I created all these assets over the last two years that'll give anyone for free if you donate 200 bucks. Okay. And there's a bunch of free stuff for people who did nothing. So if you're broke, I got you. Don't worry. And that's why I set it up. Okay, so between now and when we hit 3.35 copies, anyone who donates 200 books will randomly select 10 of you to receive one of these. One of these. One of these guys. So as of right now, between now and when we hit 3.35, which is coming up pretty soon, anyone, like, who donates 200 will randomly select one of you guys to get one of the signed copies. All right, so that's the. That's what's happening now. Let's. Let's. Let's get jiggy with it. Okay. Okay. Miles Lua, you just. Thank you. You just. You just. You just got 200 bucks. Thank you. Okay. Rock and roll. So thank you for that. Appreciate it.

[Caller]

Pre orders arriving already, so good job, guys.

[Alex Hormozi]

Oh, dope. Exciting.

[Caller]

I don't know what that means.

I don't know the person you are trying to.

[Alex Hormozi]

All right, all right. We're gonna try another one. I'm gonna get canceled before this. Before the live stream even ends.

[Caller]

No, no, it'll be okay.

[Alex Hormozi]

Okay. Yeah, I have representative. I'm good. I have. I have. I have. I have coverage. I have coverage here. I'm good. All right. Nick. Nick Ostosh. Okay, so some of the 2002 are coming in right now. Our team. Are you guys gonna send me names so I can. So I can read off who just. Who just got some copies? Ed, give me a name. Otherwise, I'm calling. I'm calling Nick. Understanding Behavior. Oh, wait, that was thematic. All right, I'm calling Nick. I'm calling Nick. I'm calling Nick. Okay, and then as we. As we. Oh, wow, we're really about to hit the 200, though. So it's literally right now. Nick. What's up, dude?

[Layla Hormozi]

Not too much.

[Alex Hormozi]

How you doing, man? All right, we got five minutes. Top line, bottom line. What's the problem? What's your top one?

[Caller]

Cool. Yeah, we're a pretty new company right now. We're making about 80k a month, and we're profiting about 75 of that.

[Alex Hormozi]

Okay. Well, yeah, it's great. Okay.

[Caller]

For sure. For sure.

[Alex Hormozi]

Yeah.

[Caller]

So we run a company. I do test preparation for people that are taking the BCDA exam to become fine. This is board certificate certified behavior analyst.

[Alex Hormozi]

Okay, Got it.

[Caller]

Which is pretty cool because I can tell that you're a scenario at heart and all that, but, yeah, so we. One, like, our biggest bottleneck right now is just getting more attention. Like, our products are really good, and all of our students love them. Our reviews are crazy. It's just kind of getting more volume. But one of our problems with the business is that since with our company, we. Our students don't really need us once they pass the exam. So they pass, and then they just, like, don't really. They don't need us at all.

[Alex Hormozi]

That's fine.

[Caller]

So it's really difficult to get continuity because we just constantly have to get new customers. So one thing that we've been working on is getting, like, more university collaborations. So we just collaborated with our first university, and they're going to be implementing all of our materials for all of their students for, like, across their whole program. And I feel like that's the best way to get continuity, so. But I just wanted to kind of, like, pick your brain about what kind of strategy should I be using to. For cold outreach to new university programs.

[Alex Hormozi]

Okay, so pause real quick. Pause real quick. So currently you. What percentage of revenue is coming from university programs that you're doing collaborations with? And what percentage is coming from just, like, people coming to you and just saying, hey, I want to help with test track?

[Caller]

Right now, it's like 95% just from people. And we have this one collaboration, and all their students are about to roll in and purchase all our products in, like, the next couple weeks. So we haven't touched that revenue yet, really.

[Layla Hormozi]

And.

[Caller]

And this is just to get. Once they take the test, they get into a university program. Is that correct?

No, opposite. So our students, they've already graduated from their programs. They all have master's degrees, and then they need their certification to practice professionally.

[Alex Hormozi]

Well, that's great, because it's closest to money. That's wonderful.

[Caller]

Yeah, yeah, absolutely. Most of our students, they pretty much like triple their income once they pass their exam.

[Alex Hormozi]

Okay, so let's. Okay. Okay. So you're sitting on a gold mine. So that's the good news.

[Caller]

Yeah.

[Alex Hormozi]

All right, so I want to talk through a couple things. I'm just gonna give you a couple tactics. I gotta. I gotta keep going. But here's. Here's, like, we're gonna rapid fire. So number one, every single person who walks in the door, you have to get their current earnings. You have to. You get it. You have to get bank statements, okay, six months after they graduate. And you have to put some sort of stick there. Maybe it's a rebate. Maybe, like, ideally a rebate. Or maybe they can own. They can only become a member of this thing that you charge $10,000 a year, but they get it for free if they xyz, which is they send you their earnings after they get the job using your thing. Okay, so the reason that that's important is that then because you have such a clear. Like, we get people from point A to point B, and it is related to the income that they're going to be able to earn in a field. Like if you look at Harvard, Harvard can publish the average or median income of a Harvard graduate. They can say that, that. And so people will think, okay, well, if I go to Harvard, my median income post graduation is $125,000 a year. Okay. Great. I don't know what the number is, I have no idea what it is. But that, but they can publish that. And so to the same degree you're then able to frame your value against what that triple is in very real terms. And that way you can put disclosures, say hey, these are the medians that we have 10% of people who don't get jobs. And you know, like literally just publish the stats if you are as good as you say you are. And it'll just make, you'll be able to price so much higher by doing that. That's number one.

[Caller]

And the way to do that is to add the alumni job board as the thing. So you get the full time lifetime access to the alumni job board and that's what people get. And you can show that to them on the, on the front end.

Okay, yeah, I like that idea for sure.

[Alex Hormozi]

Okay. That's thing one. Thing two is I would, I think the idea of going after the, after the universities is not a bad idea. You need to think about your business as one level chunked up, which is that the customers are the universities, not the kids. Right. And so the goal is to basically create a monopoly here where you can map the entire network of these universities. They make full time partnerships with you and ideally you can lock them into longer term agreements. And I would always ask the magic question, which is what would it take? What would it take for us to make this exclusive? What would it take for us to lock in for five years? And once you do that, then you can become an entrenched monopoly, but you're too small for anti monopoly rules to, to affect you. And then you can become a money printing business again, not a guarantee your results will vary.

[Caller]

Yeah, yeah, absolutely.

Yeah. What Alex is saying is also like, you know, you want the test prep is just a part of the journey.

[Layla Hormozi]

Right.

[Caller]

So you, your next part of the journey is, is the career placement part of the journey? So you just have to figure out, hey, what is the career placement component that I can add to this? So the test prep is paid by the student. The career placement is paid by the university. So you monetize both sides of the kind of both sides of the supply demand curve.

Yeah.

So people with the certification are super high demand. Like they find jobs instantly, like they apply and like they're just handed jobs.

[Alex Hormozi]

Well if you want to make more money, right. Then that's a scarce resource and so then you can include in a placement at an even higher, higher earnings. Like basically you can pre negotiate for them. Because if they're all getting lots of jobs and it's scarce, which means you can then create overrides, which means you can hoard the scarce resource, and then you make money on the customer and on the placement.

[Caller]

Okay, I see.

[Alex Hormozi]

I don't think you do that now, to be clear, because you're too small. So I want to be clear, but that's, like. If we're looking at, like, what's the big vision? That's where we want to go right now, though. Document the earnings, number one. Number two, once you have those documented earnings, you go to the. I would. I would do that first, because then you can use that in your sales pitch to each of the universities, because that makes sense for them, because they're going to want to advertise those numbers, too, if they can. And they will be able to if they fully and exclusively collaborate with you.

[Caller]

Yeah, totally.

[Alex Hormozi]

Okay.

[Caller]

One more thing is. Yeah, I got to.

[Alex Hormozi]

I got to go to the next one, though. But I. Does that help at least to get you started?

[Caller]

Yeah, for sure. Very helpful.

Happy birthday, man.

[Alex Hormozi]

No, I appreciate you and the. If you want to get rubbed shoulders with the universities, the best things that I found have been going to the trade shows and conferences, because that's where the buyers are. That's where you'll be able to, like. It's the easiest way to get your foot in the door.

[Caller]

Awesome.

Good to know. Thanks so much. Appreciate you.

[Alex Hormozi]

You bet. I'll give you one more 201 strategy, which is hire someone who already did sales into academia. This is a little bit higher end. That person already has the black book. They already have all the key holders for every one of these universities, and you're basically buying their black book by hiring them. So then when they call, they pick up the phone. That's what you're paying for. All right. All right, awesome. Appreciate you. All right. Thanks for donating books, man.

[Caller]

Yeah, thanks for doing.

[Alex Hormozi]

All right, we hit it. Oh, we hit three, four. Okay, so do we have. Do we have.

[Caller]

They're working on it.

[Alex Hormozi]

They're working on the names. Okay, fine. What? So we hit the 3.3.35. So 10 of you guys who donated 200 bucks, they're pulling names right now because it happened really quick, and they're gonna send them to me, and then you guys are gonna get signed copies, and I'm gonna. I'm gonna name the names in a minute. Okay. Okay, so. Okay. I saw somebody request dental, So I have dental right here. That's literally somebody just not opted In Donny Books, who was dental? Okay, so we got Red Lion Dental, David Black. Hopefully. Hopefully picks up. We'll find out. Yeah, I'm calling people who donate. Yo, what's up, man? Hey, let's talk about redline dental. We got five minutes.

[Caller]

Okay, so top line revenue for last year was 1.6 million.

[Alex Hormozi]

I love this. Yes, keep going.

[Caller]

We are, we are on track to do 2.1, 2.2 this year.

[Alex Hormozi]

Okay.

[Caller]

The increase comes from. We've been revving up the Invisalign side of our practice. Two years ago we were doing eight cases a year. In the last 12 months we've done 143.

[Alex Hormozi]

Love it.

[Caller]

I have two questions for you. One's a little bit more just straightforward tactical, which is I now need to hire a full time appointment center. Do you have any recommendations on compensation strategy there?

[Alex Hormozi]

Dude, it's going to be such a short lived thing, man. Like you're going to do this for like 12 months and then I mean tops. Because SDR, like AI. AI appointment setting, especially for medical, for something that like is well understood is going to happen. Like it's, it's, it's in swing right now.

[Caller]

We're already using an AI for our receptors, so.

[Alex Hormozi]

Yeah, so you need to get an sdr. So you're saying just recommendations for how to find an scr?

[Caller]

No, I have.

Well, I mean if you have any quick ones, that would be great, but the talking on the phone.

[Alex Hormozi]

Sorry, my 4 year old, young hungry 20 year olds tends to work great.

[Caller]

Okay.

[Alex Hormozi]

The other question I had.

[Caller]

So we've been doing, our price for Invisalign is 4,500 doing as a lead, which I want to get rid of or as an offer was $500 off.

I hate it.

It just passed through pump lane like you were saying a few minutes ago. So I was trying to come up with a magnet. The one I had come up with was coming for your free Invisalign consultation. And we will make you custom waiting trades at no charge. So you get that whether or not you move forward with Invisalign. We just qualify that appropriately.

[Alex Hormozi]

You like that better than the $500 discount?

[Caller]

Yeah, because my cost to produce trays is about 30 bucks.

[Alex Hormozi]

But does the person who come in for a free teeth whitening thing, do they want Invisalign?

[Caller]

So that's the pre qualifying one.

[Alex Hormozi]

Okay. Okay.

[Caller]

Right.

[Alex Hormozi]

And you're running that offer now?

[Caller]

No, I was about to start that and then I got access to your AI and what it recommended was do a basically a $49 like get, get pay 49. A discounted $49 for lightning. That would normally cost $400 when you come in for your Invisalign.

[Alex Hormozi]

Yeah.

[Caller]

So you have people who have stay in the game, help cover up, cover, cover up for cost. And then we have a subscription model to keep people in maintenance for Lightning.

That's. Yeah.

[Alex Hormozi]

Nice job, AI. Good job. Yeah, I'm going to get retired soon.

[Caller]

Do that.

[Alex Hormozi]

No, that's a good. That's a good suggestion. So I'll give you a little detail. Maybe the AI didn't say this. So I still have value. When you get the. You want to get the card over the phone if you can, obviously to bill. And then that way you can also just charge a no show if they don't show up. But if you're billing them up front over the phone for the discount thing, that'll dramatically decrease the show rate. And then when they come in, I would probably position this. I would use probably half of a menu upsell in terms of the mechanics. So obviously we own a tee lighting chain. So I'm super familiar with the whitening process and sales process around this and the sales process that we designed more than doubled ltv. And so basically what we would want to do. Do you have any computer imaging software?

[Caller]

Yes.

[Alex Hormozi]

Okay, so I'm guessing you show them like this is what your smile could look like. Yeah.

[Caller]

So we have an Itero. So we can do both. Here's, here's with just Invisalign. Here is Invisalign and veneers.

[Alex Hormozi]

Okay. Yeah. So. Oh, do you do veneers too?

[Caller]

Yeah.

[Alex Hormozi]

Yep. Dude. Printed. Yeah. Yeah. So yeah. You know where that we're going to go here, take a picture of them. Say what? You know, here's you when you're pretty. Here's where you. Now you know which of these three looks would you prefer? All of them are buying and you say, great. I recommend this. Do you want to use the card you have on file which they gave you because you already have it. So it makes the whole sales process super buttery. Yeah. I mean, yeah, that's a thing. Yeah. Well, I mean, the AI kind of nailed it, but yeah, that, that, that worked real good. Awesome.

[Caller]

Okay.

[Alex Hormozi]

Good job so much now. You bet. Congratulations, man. And thank you so much for donating books, dude. I appreciate it.

[Caller]

Absolutely.

[Alex Hormozi]

Have a good one. Are you too. For anyone who's curious what he was referencing the AI I trained on 226, 101 consultations, which people paid 135, 000 for. I'll show you this real quick. Maybe the camera can in zoom me. So this is what actually went on. So I would. Let me see. Yeah, there you go. I've blacked out the faces here. But, like, I would have a consultation and then we would go in, and so we have all the stats about the business. And so all of this is all like, all the notes that I would. That. That we would take on the company, and we would just basically pull through all the things that we need to do about the business. And then there's just a lot of pages for each one of these. But anyways, we would do that analysis and then to come in, and then I would be like, hey, these are the things you need to do. This is the promo I think you should run. Here's some of the data that supports it xyz. And so all of these companies paid for that from me specifically in person. And so I trained it on that. Plus all 12 implementation playbooks, plus all of my books and the notes that are unwritten about my books. Kind of like the lost chapters, but more stuff. And all of that is free. When you donate 200 books and you're like, why would we be doing something like this? It's because we were going big. We're trying to put a book in the hand of every entrepreneur in America, and I wanted to incentivize business owners to help. All right. And so that's that. What? Yes.

[Layla Hormozi]

Speaking of.

[Alex Hormozi]

Yes.

[Layla Hormozi]

We have some names to pull.

[Alex Hormozi]

Okay, we got names to pull. For the. For those of you who donated 200 bucks during that little window that I had pulled up. Okay. Drumroll, please. Yeah, I know, right?

[Layla Hormozi]

Three random signed book winners. For people who bought the 200 book bundle, we have Tom Urbanski from London, United Kingdom. Can we sign his book?

[Alex Hormozi]

I just signed it earlier.

[Layla Hormozi]

Yes. Oh, you signed it. Okay.

[Alex Hormozi]

But it's signed. Okay. Oh, no. Put his name on it. Put his name on it. I'll sign it like this. Okay.

[Layla Hormozi]

Yeah.

[Alex Hormozi]

Tom, you rock.

[Caller]

Here's a blue.

[Alex Hormozi]

You were probably saying, oh, I think it's cool with black.

[Caller]

Okay.

[Alex Hormozi]

Yeah. All right, Tom, that's for you, dude. Thank you. All right, what's our next one?

[Layla Hormozi]

Now we have Robert Weirda from Tampa, Florida.

[Alex Hormozi]

Robert.

[Layla Hormozi]

Robert.

[Alex Hormozi]

Robert. Thank you, dude. Thank you for donating books. If you're online, drop a. Drop a chat, guys.

[Layla Hormozi]

Anybody who donates to an books, you get a chance at a signed book from Alex.

[Alex Hormozi]

Thank you, dude. All right, what's Our next benchmark? 3.4. Did we. Oh, no, we're not there yet.

[Layla Hormozi]

Okay.

[Caller]

Okay.

[Layla Hormozi]

All right, next we have Cody Limbaugh.

[Alex Hormozi]

How do you spell Cody? C O, D, Y.

[Layla Hormozi]

C O, D, Y.

[Alex Hormozi]

Okay. C O, D, Y.

[Layla Hormozi]

From Enterprise, Oregon.

[Alex Hormozi]

Keep giving. Thanks, dude.

[Layla Hormozi]

Thank you guys for supporting and doing the 200 book bundle.

[Alex Hormozi]

We're gonna take calls after this. All right. Okay, next name?

[Layla Hormozi]

Oh, that was it.

[Alex Hormozi]

Oh, three. All right, three. Okay, then we're gonna.

[Caller]

We'll do.

[Alex Hormozi]

Okay, then we'll do another three. Okay, fantastic. You got it? Got me all. Got me all hot and hot and bothered. Okay, you have my phone? All right, fantastic.

[Caller]

Wanna hang? Yeah, you hang.

[Layla Hormozi]

I'll see you in an hour.

[Caller]

Yeah, sounds good.

[Alex Hormozi]

Okay. Okay, where we got. Okay, so that was David with Redline Dental. Wasn't that fun? Okay, next one is a different David. 10x re up. I don't know what that is. We'll find out. Re up. I wonder what it means. I may have to pee at some point.

[Layla Hormozi]

This is David.

[Alex Hormozi]

David, Re up. It's Alex Hermosi and Layla Hermosi on Hermozi hotline. We got five minutes. Thank you for donating books. How can we help?

[Caller]

What up?

What up is Storms is my live behind right now.

[Alex Hormozi]

What? Oh, no. Yeah, the live is behind. So it's always like five or ten seconds. Fine, you're good.

[Caller]

Okay, cool.

[Alex Hormozi]

Yeah.

[Caller]

So real quick. I'm in the business of getting other people and other business owners money for their business. So like loan stacking through banks and alternative lenders.

[Alex Hormozi]

Okay.

[Caller]

And very specific question for you with this one. With ACQ Ventures, I'm working with a tech startup right now out of Silicon Valley and their founders.

[Alex Hormozi]

Yeah.

[Caller]

And they're in the process of. Of talking to some people for getting 30 million. And I was going to ask you, like, what the process looks like or how you guys do it at ACQ Ventures if you do stuff like that. But they're building. Can't say too much because I signed the NDA, but they're building something that I think that you guys might be aligned on.

[Layla Hormozi]

Well, we. We have to know. We have to do diligence on the business. So we have scorecards essentially for business. Business scorecards, founder scorecards, looking at essentially like rating them. And then we weigh out each one of those things. So, you know, there's 15 to 20 points for the founder, 15 to 20 points for the business, 15, 20 points for market economy. And then each one of those points is weighted differently based on how important it is. And we just honestly use a Formula, so we run the businesses through there and it helps us make objective decisions. But we have to get. Get the diligence in order to know for sure if we would invest in the company.

[Alex Hormozi]

For sure.

[Caller]

Yeah, I was going to be in. I was actually going to be in like Laguna on Wednesday and I'll be out in Cali for like the next two weeks. I'll be going to San Fran and LA during that time. So I'm in the. I'm in the school. So it'd be dope to see what that process would look like. So I can connect you with the. With the founder because they've already built it. It's already like ready to go.

[Alex Hormozi]

The way to do it is just have them go through ACQ Ventures because we have a whole process for that. We have a whole team that looks at deals every day.

[Layla Hormozi]

If you make a post in the group, we'll get. We'll get you Zach Choy, our general partner, to hook link up.

[Alex Hormozi]

Yeah.

[Caller]

Okay, Sweet. And then. Okay, so a different question that's specific to. To my business is for getting people funding. I was wondering what you guys would think is the first thing that I should hire out on because basically I'm on the revenue roller coaster of like, I'll have like one decently big month. Like last month I had my biggest was like 55k. And like 50k of that is like profit. But I'm pretty much one man show right now using some AI systems. And I'm going up and then I have to deliver for the clients and that slows me down on the marketing side. So would you guys recommend like hiring somebody for sales first or hiring somebody with skill and training them to help me with like, the delivery of the service?

[Alex Hormozi]

I know what I would say.

[Layla Hormozi]

Yeah, I already know we're gonna say the same thing.

[Alex Hormozi]

Yeah, I would have, like, I would have somebody help you out with the delivery because right now, dude, like, you're. You're in. You need a. You need to generate revenue, right? Like million. Yeah, go ahead.

[Layla Hormozi]

Yeah. Always delegate revenue last. So whatever's closest to revenue you hold on to the longest.

[Alex Hormozi]

Typically now. And to be clear here, for like somebody who's a software. Software founder, if like the software you have needs to go viral in order to succeed, then the thing that is closest to revenue, that has the highest leverage is actually improving the product. So again, like, there's a little bit of nuance there. Yeah. Business specific. But yeah, for the business that you. It sounds like you're in right now, it's going to be more promotion heavy, like, you know, do more deals. Yeah. And so, yeah, I think the delivery, I would imagine is very process oriented.

[Caller]

Yes. Yeah. It's a lot of like meeting with them.

[Alex Hormozi]

Yeah. Checking boxes.

[Caller]

Yeah, exactly.

[Alex Hormozi]

Yeah. So that's totally. And I'm guessing it's probably taking up half your time, something like that. Yeah, yeah. So for sure that would be the lower leverage thing that I would like. That'd be the first thing we hire up.

[Caller]

Okay, cool. And then my other question was going through the course already. I was building out my series and I was looking at one of the attraction offers, the free premium offer giveaway. Do you guys. Or have you seen a way for that to work or is it designed to be able to work through like a cold email system where I can just rip, you know, 2,000 emails per day?

[Alex Hormozi]

Giveaways don't work. Like, I'll say this, I would not use a giveaway as my attraction offer for using cold outbound as my method. So giveaways works, you know, super well with like one to many communications, whether that's content, whether that's paid ads. Super well outbound. It's like you, it's. No, that's just like, that's, that's not how I do it.

[Caller]

Okay, gotcha. Would there be a certain attraction offer for that you would recommend for an offer like getting business owners funding based off like a cold outbound to rep emails.

[Alex Hormozi]

So I mean, is there a giveaway for sure? The question is just like how much? Because you want to make. Oh, wait, wait. Sorry, sorry. Roll back. You said is there a giveaway option that I would do through outbound? Is that what you said?

[Caller]

No.

And that's an attraction.

[Alex Hormozi]

Oh, an attraction offer.

[Caller]

Yeah. That would fit there. Yeah.

[Alex Hormozi]

Let me try to think. I think that I would probably end up doing a. I would probably end up doing a decoy offer for that. So it's like they come in for something that's free, but then you explain to them that that's only one part of a much bigger system and they really want this other thing and they'll happily buy that other thing that's significantly more expensive rather than the free thing, which obviously you can offer that, you know, if they should, they choose not to get it, but you, you know, you give them the upside for sure.

[Caller]

Okay, cool. I appreciate that. And then if that pretty much answers all my questions. But it's funny that Layla and I'll just put this on, on, on record, she convinced me to drop out of College years ago, so.

[Alex Hormozi]

Yeah, well, thankfully it worked out. Otherwise, he's like. And I'm homeless now, and how did.

[Layla Hormozi]

I convince you to drop out of college?

[Caller]

Your video on YouTube. Basically, like, weighing the pros and cons. And I was like, wow, this has never been more obvious what I need to do.

[Alex Hormozi]

Well, there you go.

[Layla Hormozi]

I'm glad it's working out. That's freaking cool.

[Alex Hormozi]

Well, Layla convinced me to drop out of singleness, so. I hear you. Thanks, man. I appreciate you. Thanks so much for donating.

[Caller]

Yeah, thanks, guys. Appreciate it.

[Alex Hormozi]

All right, okay, so let's do two more.

[Layla Hormozi]

We have two more winners for sign books.

[Alex Hormozi]

Okay, let's do it.

[Layla Hormozi]

And then you go run with me.

[Alex Hormozi]

Yeah. And then. All right, let's do. So put my sign in.

[Layla Hormozi]

So we have Chase Sugarman. All right, Mr. Sugar Man, San Diego, California.

[Alex Hormozi]

Mr. Sugarman, you donated 200 bucks. I only remember Sugarman was the first.

[Layla Hormozi]

Chase.

[Caller]

Chase.

[Layla Hormozi]

Yep. And, guys, this is for anyone who donates 200 books. You get a chance at a signed copy.

[Alex Hormozi]

Keep being awesome. Boom. All right, that's thing number one.

[Layla Hormozi]

Okay, now we've got Mark Magalan from Marson Park.

[Alex Hormozi]

M A R, C or K. Last thing. I want to spell it wrong. Mark. Rk.

[Layla Hormozi]

Okay, Mark from NSW Australia.

[Alex Hormozi]

All right, we're shipping this out to you, Mark.

[Layla Hormozi]

200 bucks going to Australia.

[Alex Hormozi]

Oh, sorry. All right.

[Layla Hormozi]

Oh, we have one more.

[Alex Hormozi]

One more hot one.

[Layla Hormozi]

The special one.

[Alex Hormozi]

Oh, yeah.

[Layla Hormozi]

Yes. Shem.

[Alex Hormozi]

Shem.

[Caller]

Okay, I don't know.

[Alex Hormozi]

Does this sound like we're supposed to know?

[Layla Hormozi]

All right, and she actually has a fucking mood. Follow plan, license plate. So I'm gonna sign it too.

[Alex Hormozi]

Okay. All right. And then she'll know this part is for me. And then I'm gonna do this. And then you call the next person.

[Layla Hormozi]

Maybe I'll do whatever, you know, I feel like.

[Alex Hormozi]

Okay, so call this one next.

[Layla Hormozi]

Okay.

[Alex Hormozi]

Okay. Brb.

[Layla Hormozi]

Okay, have fun. Should I call somebody or should I answer? Should I answer questions about Alex that are uncomfortable? Should I spill some tea? I know, right?

[Alex Hormozi]

Hello?

[Layla Hormozi]

Hi, this is Layla Hormozi.

[Caller]

Oh, my gosh.

Leila. How are you?

[Layla Hormozi]

Good. How are you?

[Alex Hormozi]

I'm really good. I'm really good.

[Caller]

Sorry, gym life. I've got the gym music going on in the background.

[Layla Hormozi]

Oh, my gosh. You're fine. I love your license plate.

[Caller]

Thank you very much.

Thank you.

But they took it off me. They thought it stood for something else, so they.

The government took it off me, which is not fun.

[Layla Hormozi]

Seriously, they took it off. What the heck? That's so rude.

[Caller]

Okay.

[Layla Hormozi]

Yeah.

[Caller]

Not cool.

I know.

[Layla Hormozi]

Not cool. Well, you're on her mosey hotline and Alex went to the bathroom and so they gave me your number to call and I was like, she's got the license plate, we gotta do it.

[Caller]

Well look, I think that you are the perfect person to answer this question for me because yeah, I'm, I'm really stuck, Leila. Like I'm really stuck. Yeah, I have been training up a operator to come in and replace me to have more time. We really want to scale and go to three locations and like to four locations and scale to sort of eight figures. And the operator that I have poured so much into in the last two years has unfortunately burnt out. I keep taking these technicians that come from like peak to PC manager through to like an operational role. And I feel like I'm needing someone that has more influence versus the technical guys that are coming in and you know, they've got all that analytical stuff and they're really good at the technician side of things. But it's almost like that matrix style org structure that's just not working for me. I've got someone that potentially is quite influential like me that comes, comes from like a sales background.

[Layla Hormozi]

Yeah.

[Caller]

Like a bit of retail management experience. Would you recommend that? That is someone that potentially could help me run. Like it's, you know, it's a five million dollar PT business. We have 1600 PT clients, 35 staff and it's like high volume but also high care and high service PT model. And it's, there's a lot of systems that we've built out, a lot of, you know, data tracking. We know to how numbers, we know our stuff and we want to scale. But it's like who, who is the person that I should bring through?

[Layla Hormozi]

Yeah. So in general, if you are looking at hiring somebody to be an operator, I look at it as an operator is really a people operator. Right now if you can operate and you can influence people, you probably also can deal with process and systems and all those things. But I look at it as, it's a much higher leverage skill to have somebody who has the ability to, to essentially influence people, lead people, manage people and drive sales than it is to have somebody who understands like the technicalities, the project management skills, the organization. So I almost look at it as like that person you want to have at the top. And then they can contract people, they can hire people, they can like if they're not the best at the analytical technical side, they can get people who Are, you know, like for me, for example, like my skill has never been like, oh, I'm the best with systems and project management tools. Tools and organ. Like it would actually be probably a bad use of my time to do that because I'm better at, you know, leading people, driving revenue, doing those things. And so I think you want to think about what's your skill set. Right?

[Caller]

Yeah, influence.

It's 100 influence.

[Layla Hormozi]

Right.

[Caller]

And so people are pouring into my people conviction. It's. I'm selling even from the interview process of when I'm in HR and I'm even just selling it at PT role. I use the interview process to almost like sell our culture. Ourselves.

[Layla Hormozi]

Yes.

[Caller]

Our team. The point of difference that we have in the marketplace. Like I use my conviction to influence my team.

[Layla Hormozi]

Correct. So you want somebody who approximates your skills. If you bring in somebody who has none of your skills, then what are they taking off your plate? They are solving a new problem, but they're not solving the fact that you still have this on your plate. And so a lot of people, when they bring in an operator, they. This is the number one thing I see is they think, oh, I need somebody who's like the opposite of me. They need to be like very detail oriented opera and all these things. I'm like, listen, I'm an operator and I'm not that person. I'm not hyper technical. I'm not driving the project deadlines. I'm not doing like I am a people leader through and through and I also have an enormous sales background. And so I think that you have to. It's like the weirdest frameship. It's like find somebody who's more like you and they will take more things off your plate and they'll probably be able to do a better job leading, leaving the team. And so I think honestly, it sounds like you had the wrong avatar in the past and I think that you've taken the step in the right direction. So like, I love your plan. I actually wouldn't change anything. I think that you should give this person a shot.

[Caller]

Oh, this is absolutely huge. Honestly, this is the biggest constraint that's stopping us from scaling and duplicating our model. Because all of our systems and fulfillment and everything like that is locked down. Even hiring our technicians is locked down. But leadership is a huge dysfunction. And we, you know, we're great operators ourselves and great leaders ourselves. And it's just like cloning ourselves as leaders is really holding us back from going to, going to eight figures.

[Layla Hormozi]

Yeah. And at some point you have to. You have to make a choice which is like. And it's more of a decision which is like, I can no longer scale this business off my leadership alone. I can no longer scale this business off my influence alone. Like, I have to bring in other people. And sometimes when you're thinking about scaling the business, like we talk about the constraint of the business all the time, but sometimes it's your. You are the constraint. If you are. If you have a lot on your plate, if you are gassing it, if you are working 12 hours a day and you bring in people that are not coming in to relieve you, you've just added more to your plate because you have to manage them, manage their output, manage their KPIs, but you haven't relieved yourself of anything. And so I think sometimes the best thing you can do is ask yourself, what's constraining me versus the business? And I think once you get to that point where you're, you know, creepy on eight figures, that's probably the best.

[Caller]

Question to ask 100%. And like, the hardest part as well is trying to find people that have the grit and resilience. I think sales, sales builds up for you. It's gritty where if you're getting someone from, you know, a technical background, they probably don't have the same grit to deal with all the adaptability and all the constraints that operations has. They're probably not, not even just in their mindset and their adaptability alone, probably not going to be able to handle the volume of operations.

[Layla Hormozi]

Yeah. So here's what I tell you. This is what I tell people. I want somebody kind but tough and I want somebody organized with sales skills. That's it. Those are the two things. Kind but tough. Organized with sales skills.

[Alex Hormozi]

I literally use.

[Layla Hormozi]

I love it. I think you're on the right track.

[Caller]

I would make the higher you are epic. Sometimes I just needed to hear it from someone that I really trust and know that has the answer. So thanks, Layla. And I'm in content with Sharan at the moment. The operator is just phenomenal. So thank you so much.

[Layla Hormozi]

Thank you. Okay, well, hey, have a great rest of your night. Or morning, I'm not sure. Okay, I'll talk to you soon.

[Caller]

Morning. Thanks, Layla. Bye.

[Layla Hormozi]

Thanks. Bye.

[Alex Hormozi]

All right, so I was told by the 100 million dollar men that we're doing as soon as. Yeah, I'll say when, I'll say when. I'll say when. We're good, we're good. Let's do. Let's do the next. Next Cell life one zero. You want to do one early?

[Caller]

Okay.

[Layla Hormozi]

Okay.

[Alex Hormozi]

Okay. Because we're gonna do.

[Layla Hormozi]

Okay, Telephone.

[Alex Hormozi]

Okay. The next 10. The next 10 people who donate 200. There you go. You got it. Next 10. You don't over 3.35. Get a signed copy. So right now you donate 200 copies. We will sign a copy. I'll put your name on it. It's the next 10. Okay, I think we might.

[Layla Hormozi]

Next 10.

[Alex Hormozi]

That might have been the next 10. I think we're close. No, I think we got two left. That's. I think that was seven people. There's. And I think there's one. One left. Okay. As soon as we get the names, we will be. We will be signing. Signing copies for you guys. You guys rock. Thank you guys so much. And thank you on behalf of the entrepreneurs, by the way. Okay, let's pull up. So we did. We did. Okay. Who else we have here? Let's rock and roll. We have. We do. Angelo. No, we didn't do that one.

[Layla Hormozi]

I don't know. I haven't been up here.

[Alex Hormozi]

Yeah, I have. Okay. So.

[Layla Hormozi]

So serious.

[Alex Hormozi]

All right, so this is a slightly smaller business, so this will be a good one for anybody who's a little smaller.

[Layla Hormozi]

Salty.

[Alex Hormozi]

Don't be fucking. Calm down. Oh, that's why it's smaller business. The phone doesn't work.

[Layla Hormozi]

Denied.

[Alex Hormozi]

All right. I'm giving him.

[Layla Hormozi]

He's like, I can't get leads.

[Alex Hormozi]

Be like, phone doesn't work. I'm calling you, man.

[Layla Hormozi]

I'm calling you.

[Caller]

The phone don't ring.

Did not mean to do that to you.

[Layla Hormozi]

Dude, you just hung up.

[Caller]

It wasn't a power move, I swear.

[Alex Hormozi]

Dude, are you flexing on me, bro?

[Caller]

Happy birthday, man.

[Alex Hormozi]

No. Well, you know, my happy birthday gift to you, so thank you so much for donating books, man. Let's. Let's. Let's do this. Okay. Top line's 20k a month.

[Caller]

Yeah.

Yeah.

[Alex Hormozi]

Okay, 20k a month. 4k bottom line, right?

[Caller]

Yep.

[Alex Hormozi]

Okay. Got it. So what are you selling right now?

[Caller]

We're selling client acquisition services, so I'm doing financial advisors. So I'm doing a bunch of stuff. I'm doing paid meta ads for most of the deliverables. And then I'm starting to notice that we're booking a lot of appointments for advisors, but they're not closing them. So I'm starting to build in, like, AI sales enablement and supporting them with, like, sales coaching calls to help them convert.

[Alex Hormozi]

Okay. I drink a shot of energy while you said, who is the person that you're doing the client acquisition for?

[Caller]

Financial advisors.

[Alex Hormozi]

Financial advisors. Okay, got it. Okay. What's the price point?

[Caller]

So I'm charging 5k up front, and then between 2k a month and 5k a month. And then I'm trying to figure out some sort of upside.

[Alex Hormozi]

Yeah. How are you getting them right now? Yeah, how are you getting. How are you getting them right now?

[Caller]

Yeah, so I've done the interview message, so I emailed like, a bunch of people, did some insights, did that. First we got one from Cold Call, and then I've had a couple verbal yeses through paid Facebook ads, but we haven't actually closed.

[Alex Hormozi]

Okay, how long have you been doing this?

[Caller]

I really started pushing this since October.

[Alex Hormozi]

Okay, so like, less than a year. Yeah. You're figuring out your first real channel. So I'll tell you right now, for just about anyone who's doing less than a million dollars a year, it's almost always dramatic underestimation of the volume required. Okay, so right now, you said you got one from cold calls, you got one. You got a couple from interview method, right? Yeah.

[Caller]

Yeah. And then I've been moving to paid ads, and the lease loan is coming in, but, like, the quality of the leads have been fluctuating. So I'll have a couple good calls and then a couple, like, terrible. And I'm just trying to figure out.

[Alex Hormozi]

Dude, you're just measuring on two. You're measuring on too small of a time horizon. I'm just like, it's normal. You got good leads, you got bad leads. That's just part of it.

[Caller]

All right. Okay. And so you don't. You don't think it's the offer. Like, you don't think, like one of my. You think that should just ramp up the amount of volume in terms of new prospects. Because I've also done.

[Alex Hormozi]

What's Your close rate?

[Caller]

80.

[Alex Hormozi]

What's your close rate?

[Caller]

10%.

[Alex Hormozi]

Say it again.

[Caller]

10%.

[Alex Hormozi]

Oh, 10%. Your close rate right now. Yeah, now. So the 10%, though, because I want to give good. Get good numbers. Here are all that would mean that 10 out of 10 people that you made the offer to were qualified or this 10 people you talked to. So, okay. Of qualified leads that you made an offer to. You close one.

[Caller]

Yeah.

[Alex Hormozi]

Okay. Now, I don't know how good your sales skills are, because sometimes, like, if you don't know how to, you know, if you're just getting used to sales, like that could be a thing, it might not necessarily be the offer as much. But what's the incentive for someone to sign up right now?

[Caller]

What's the incentive for them to sign up? Like, well, I would just drive them new traffic and they don't have to worry about like booking appointments. I just put appointments on their calendar.

[Alex Hormozi]

Herd, do you have a VSL in your sales process right now?

[Caller]

Yeah, but I don't think it's. Well, I don't think it's very good. My background is in sales, not in marketing, so I leaned on that heavily. But yeah, this is just a different product that I've been selling.

[Alex Hormozi]

Okay.

[Caller]

Lower ticket, high ticket.

[Alex Hormozi]

So I'm going to tell you something that I told one of my sales directors years ago, which is that at this point right now, especially if you came from a background of sales, I want you to be thinking about how do I make sales easier rather than how do I get better at sales? So I think you have the right frame. Just. Just big picture. Okay. So I like, you need basically how many success stories do you have?

[Caller]

I have three, but yeah, three.

[Alex Hormozi]

Okay.

[Caller]

They're not like amazing though.

[Alex Hormozi]

They're okay. So I'm going to tell you something that you probably don't want to hear. But like, this is what I would do if I were you. What are you going to say?

[Layla Hormozi]

So do it.

[Alex Hormozi]

Fine. Okay. Layla probably does what I'm going to say. I would probably see if I could work for people with a free trial plus penalty model, which is actually a different one. That's a money model. That's inside of money models, book and system. So when you go, go like go watch that video training on it. Everyone who's watching this, by the way, it's free. Chill out. That's free for anybody. You have to buy a book. But the way it works is this, is that you have someone put a card down and they still have to do all these behaviors. And if they don't do the behaviors, you build them.

[Caller]

Yeah.

[Alex Hormozi]

And the reason for that is like, listen, I will do this work for you and I will do it for free because I need testimonials because that offer will get you way more sales, obviously. Because like you've probably talked to all these. You probably talked to 30 qualified leads, right? Something like that.

[Caller]

Yeah, I talked to more than that.

[Alex Hormozi]

Okay, so, dude, I would rather you just like fill up your calendar, get way better at it and get way more yeses and then basically artificially, not artificially realistically jam your supply demand so that you can barely even like work, like can't even do anything Else because you've got so much business that you're working with. And then you'll, you'll, it'll, it'll shift your perspective and your behavior because you're gonna be like, dude, I, I have so many people who want to work with me right now. And then you'll learn more, you'll have way more testimonials, and then you'll have the pricing power that you need. Because, I mean, it's realistic and it makes sense that it's taking you so many to close because you have no proof. Yeah, right. You're leaning purely on sales. It's purely on sales. Like, you just need the other stuff.

[Caller]

Well, what are your thoughts on it? So, like, I guess this is a future problem. But then my other thought around this was, well, if they came up convert the leads, then I'm gonna, you know, bring on all this traffic for them to try to convert the leads. But they can't, still can't convert it. So then I'm out of cash flow and I can't solve.

[Alex Hormozi]

No, no, you're not. No, they're gonna pay for the ads. They're gonna pay for the ads. You're not, you're not. Like, you're gonna do the service for free.

[Caller]

Right, Right. But they're gonna pay for the ads. They still don't convert the leads. Right. I gotta help them convert those, those leads.

[Alex Hormozi]

This is a feature, not a bug. So when you're an agency and you deal with small business owners, which is what you're dealing with, it's going to pretty much just suck. And I'll tell you that there's really only like. Let me just fast forward to what's going to happen. Can I just tell you your future for a second? So what's going to happen is you are going to figure out how to start acquiring customers. So in steps, you're going to follow this advice. You're then going to get enough proof. With enough proof, you're going to make a compelling BSL with a compelling vsl. You're going to start being able to sell at higher prices. You're going to start increasing your prices because you know how to acquire customers. You're going to start selling more customers and you're going to get excited because you're going to a disproportionate of that is going to drop straight to the bottom line. But when that starts happening, you're also going to start noticing that people are, start falling off the back end. And then all of a sudden your Revenue is going to go up and, but cacs and start going up too over time. And then your margins are going to compress and then you're going to be at between 1 and $3 million a year. And you'll be like, man, this sucks. I have this big churn factory. And then you'll call back and be like, hey, you know, I'm doing 1.8 million. Top line, I did 250,000. Bottom line, I'm really not sure what to do with my agency right now because these guys, if they kind of suck at business and I have to try to explain to them, I have to hold their hands and do all this work for them. And so I'm just trying to figure out a better way to run this business. And so then at that point I would then say, okay, well the issue is this, is that you have a poor avatar that sucks at business. And so either option one is that you build this thing from the front end so that it's as low cost as humanly possible so they don't churn ever. And you can do something in such a way that like at 300, $400 a month, you still run insane margins on it because your stick rate's really good and it costs you almost nothing to run. That's option one. That's the low cost, high volume model and it works fine. But you have to build the business day one with that low cost volume model. So that you're dealing with these small business owners, you have to price at their worst month, not their best month. Now the second scenario is that you have to go after higher, you have to go after whales, right? You have to go up market. And those guys don't need your help closing because they know how to close and they just need deals. They need, you know, they need lead flow. Either of those are, yeah, either of those are the end state of where you're going to go. But it often happens that you have to go through all those stages that I just outlined because you don't have the confidence yet, you don't have the proof yet to go sell those whales. And so it's like you kind of need to get yourself to a business owner, you know, who's, who's making a million, 2 million, whatever a year in revenue so that they can be like, wow, this sucks, I should build this differently. So those are the two end states. It's either you're going to build this day one with kind of like super AI enabled, super automation enabled so that you can do this at low cost, or you're going to say, I got to go whale hunting. But the thing is, it's very hard to sell whales with no proof. But those are the two end states of actually what makes this business work.

[Caller]

Okay, so there. Is there a world where I don't even go after this market and I changed the.

[Alex Hormozi]

No. Everything you're good, everything I just described is true of anyone who does client acquisition for any business.

[Caller]

Okay.

[Alex Hormozi]

It's a like, what happens is if you're good at marketing and sales, you very quickly deal with people who just aren't. They're only good at one element of it, right? They're not good at some component, which is why they're hiring you. But it's kind of this catch 22, so you end up eating up more and more of their business, or you have to go up, up market. And so you either have to make it so cheap that you don't care if they churn because there's so many of them and it costs you nothing, or you actually price it in a way that you can have charge a premium, but you can only do that with people who can afford it, which is upmarket. So if you look at the biggest agencies in the world, which is basically what you are, you either got to go like, you know, super cheap, super high volume, or premium way.