Making More $$ For Your Business - Keynote & Q&A | Ep 801

Summary

Summary of "Making More $$ For Your Business - Keynote & Q&A | Ep 801"

In Episode 801 of "The Game with Alex Hormozi," host Alex Hormozi delves deep into strategic frameworks for business growth, emphasizing actionable insights to help entrepreneurs elevate their enterprises. The episode features a comprehensive keynote presentation followed by an interactive Q&A session where Alex provides tailored advice to various business owners. This summary captures the essence of Alex’s discourse, highlighting key frameworks, strategic approaches, and practical solutions shared during the episode.

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1. Introduction to Business Growth Strategies

Key Theme: Maximizing profitability by strategically increasing customer base, enhancing lifetime gross profit (LTGP), and mitigating business risks.

Alex Hormozi opens the session by sharing his philosophy on balancing passion and profitability in business:

Alex Hormozi [00:00]: “If you want to help a million people, sure, then you can help a million people with the content you make, and then you can monetize through the elite. And so you can sell to the few and help the many.”

He underscores the importance of focusing on scalable aspects of a business that generate substantial returns, such as portfolio deals, over direct sales to customers.

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2. Alex Hormozi's Strategic Framework: What, How, Who

Alex introduces a three-pronged framework to guide entrepreneurs in making high-leverage business decisions:

1. What? – Identify the primary objective: increase the number of customers, enhance LTGP, or reduce business risks.
2. How? – Determine the strategy: do more of the existing methods, improve current processes, or innovate new approaches.
3. Who? – Assign ownership: designate responsible individuals to execute the strategies effectively.

Tracking and Evaluation

Alex emphasizes the necessity of tracking initiatives against these objectives to ensure resource allocation aligns with business growth goals:

Alex Hormozi [02:30]: “You have to be able to track any of your initiatives to increasing number of customers, increasing LTGP, or decreasing risk.”

Decision-Making Process

He advises entrepreneurs to evaluate proposals based on their ability to contribute to one of the three main objectives. If a team member suggests a new initiative, Alex recommends questioning how it impacts customer acquisition, LTGP, or risk reduction. If the proposal lacks a clear linkage to these goals, it may not warrant immediate action.

Alex Hormozi [04:00]: “If they can't even ladder it up to that, then it's like, maybe we shouldn't do it. Great idea, though. Come back later.”

Strategy Selection: More vs. Better vs. New

Depending on the business stage, Alex suggests that scaling primarily involves either increasing the volume of existing efforts ("More"), enhancing the efficiency or quality ("Better"), or introducing novel strategies ("New"). For early-stage businesses, he often recommends focusing on "More" to rapidly expand the customer base.

Alex Hormozi [05:15]: “Nine times out of 10, especially if you're the 0 to 1 million category... you probably just need to do more.”

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3. Interactive Q&A Sessions

The latter part of the episode features Alex addressing questions from diverse business owners, providing customized advice based on his strategic framework.

3.1. Audience Member 1: Pilates Certification Program

Business Context: Selling a $5,000 Pilates certification with no backend offerings.

Key Issues:

• Zero backend revenue.
• Seeking strategies to increase LTGP.

Alex's Advice:

• Introduce recurring revenue models like annual renewals.
• Offer additional benefits such as insurance, community access, and advanced training.
• Ensure high-value upsells that align with the initial purchase.

Alex Hormozi [16:21]: “I like recurring.”

He suggests structuring backend offerings as annual memberships priced significantly higher than the front-end product, providing tangible benefits that justify the recurring fee.

3.2. Audience Member 2: Knee Arthritis Content Strategy

Business Context: YouTube channel focusing on knee arthritis; considering niche expansion versus broadening content.

Key Issues:

• Deciding between niching down further or expanding content scope.
• Optimizing content for lead generation and conversion.

Alex's Advice:

• Continue focusing on the most profitable niche (knee arthritis) to maintain authority.
• Utilize content to increase problem awareness among prospective customers.
• Leverage existing channels (cold outreach supplemented with content) to enhance credibility and conversion rates.

Alex Hormozi [09:20]: “I think knee arthritis, that's your number one seller right now. I think it would make sense to continue to do that stuff.”

He emphasizes the importance of maintaining a strong, focused message to foster authority and trust within the target niche.

3.3. Audience Member 3: Dual Branding for Academics and Creatives

Business Context: Running a personal brand and an academic branding company targeting tenured professors.

Key Issues:

• Managing two distinct target audiences.
• Integrating multiple business ventures without dilution.

Alex's Advice:

• Merge the two brands by integrating content that serves both audiences.
• Use the same underlying processes and frameworks, presenting them through different examples tailored to each segment.
• Ensure that each piece of content speaks directly to the specific avatar while leveraging common methodologies.

Alex Hormozi [13:26]: “They don't feel like different businesses to me. If you teach the same thing, then it's just like I have two avatars that I teach the same thing to.”

He advocates for maintaining a unified brand strategy that caters to multiple avatars through differentiated examples and messaging.

3.4. Audience Member 4: Pilates Instruction Backend Pricing

Business Context: Selling a $5,000 Pilates certification without backend revenue.

Key Issues:

• Structuring backend offerings to double LTGP.
• Pricing strategy for backend services.

Alex's Advice:

• Implement an annual renewal subscription at a lower price point (e.g., $997/year) to cover benefits like insurance and community access.
• Offer higher-tier, high-value services for those seeking more comprehensive support.
• Utilize urgency and incentives during events to drive backend sales.

Alex Hormozi [17:06]: “I would do this. So there's basically two options.”

He recommends creating a tiered backend structure that combines recurring fees with additional high-value offerings to maximize customer lifetime value.

3.5. Audience Member 5: Med Spa Business Growth and Portfolio Strategy

Business Context: Managing multiple med spa locations with varying partnership agreements.

Key Issues:

• Deciding between merging existing partnerships or starting anew with a streamlined model.
• Enhancing business valuation for potential sale.

Alex's Advice:

• Consider a private equity-style roll-up by consolidating existing businesses under a holding company.
• Standardize backend systems, payroll, and operational processes to increase overall EBITDA.
• Retain ownership controls while combining multiple entities to enhance scalability and valuation.

Alex Hormozi [30:50]: “This is the private equity models. This is who we're looking for.”

He advises leveraging existing relationships and systems to create a more substantial, consolidated business entity that is more attractive for acquisition.

3.6. Audience Member 6: AAVE AI Mobile App Monetization

Business Context: Offering a mobile app for realtors to capture professional photos, with a credit-based system.

Key Issues:

• Transitioning users from free credits to paid subscriptions.
• Reducing friction in the monetization process.

Alex's Advice:

• Target high-volume users such as brokerages to secure bulk credit purchases.
• Implement a recurring credit system (e.g., monthly credits) to ensure steady revenue streams.
• Demonstrate clear value propositions, such as time and cost savings, to encourage continued usage.

Alex Hormozi [26:10]: “One of the things I think entrepreneurs in general, like, we all do this, is we think we need to monetize everything.”

He emphasizes focusing on scalable monetization strategies that align with user needs and behavior, particularly targeting high-leverage segments.

3.7. Audience Member 7: Real Estate Coaching and Event Monetization

Business Context: Conducting large-scale conferences for real estate coaching without generating revenue from events.

Key Issues:

• Determining what to pitch during events to maximize sales.
• Leveraging event success for long-term business growth.

Alex's Advice:

• Enhance event strategies by integrating compelling pitches for high-ticket offers during or after events.
• Utilize social proof and testimonials collected from event attendees to bolster credibility and drive sales.
• Focus on creating value-driven events that serve as platforms for both community building and strategic selling.

Alex Hormozi [43:30]: “But the main thing you can get out of it is marketing material.”

He advocates for using events not just as standalone activities but as integral components of a broader marketing and sales strategy, ensuring they contribute directly to business growth.

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4. Key Takeaways and Strategic Insights

• Align Initiatives with Core Objectives: Ensure every business decision contributes to increasing customers, enhancing LTGP, or reducing risks.

• Prioritize Scalable Revenue Models: Focus on backend offerings that provide recurring revenue and additional value to customers.

• Leverage Existing Strengths: Utilize current successful strategies and customer bases to build and expand, rather than constantly introducing new, unproven methods.

• Consolidate for Value: Merging similar businesses under a unified operational framework can significantly enhance overall business valuation and market presence.

• Target High-Leverage Segments: Identify and focus on parts of the customer base that offer the highest returns relative to acquisition costs.

• Utilize Social Proof: Collect and deploy testimonials and success stories as powerful tools for marketing and conversion.

• Event Strategy Integration: Design events to serve dual purposes of community engagement and strategic selling, ensuring they drive direct and indirect revenue growth.

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5. Notable Quotes

• On Monetizing Through Elite:

  Alex Hormozi [00:00]: “If you want to help a million people, sure, then you can help a million people with the content you make, and then you can monetize through the elite.”

• On Tracking Business Initiatives:

  Alex Hormozi [02:30]: “You have to be able to track any of your initiatives to increasing number of customers, increasing LTGP, or decreasing risk.”

• On Merging Brands:

  Alex Hormozi [13:26]: “They don't feel like different businesses to me. If you teach the same thing, then it's just like I have two avatars that I teach the same thing to.”

• On Recurring Revenue Models:

  Alex Hormozi [16:21]: “I like recurring.”

• On Private Equity Roll-Ups:

  Alex Hormozi [30:50]: “This is the private equity models. This is who we're looking for.”

• On Event Monetization:

  Alex Hormozi [43:30]: “But the main thing you can get out of it is marketing material.”

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6. Conclusion

Episode 801 of "The Game with Alex Hormozi" offers invaluable insights into strategic business growth, emphasizing the importance of aligning initiatives with core objectives, leveraging scalable revenue models, and intelligently managing brand and portfolio expansions. Through his keynote and interactive Q&A, Alex provides entrepreneurs with actionable frameworks and personalized advice, empowering them to make informed decisions that drive profitability and sustainability. Whether it's refining backend offerings, optimizing content strategies, or consolidating business entities, Alex's guidance serves as a cornerstone for businesses aiming to elevate their performance and achieve substantial growth.

Transcript

[Alex Hormozi]

If you want to help a million people, sure, then you can help a million people with the content you make, and then you can monetize through the elite. And so you can sell to the few and help the many. So if you think about what I do, I make the majority of my money on my portfolio. Just be very candid with you guys. Like, we make a lot more on the deals that we do than on the tickets you guys bought. I get my fulfillment from making all the content I make. Writing the books that I do. That stuff fills me up. But I do the deals because I also like making money. This is why I'm not a big, like, follow your passion thing guy. Because I started being really into fitness and then I started a gym, and then I did well with my gym and then realized that nothing in my day had anything to do with fitness. And I'm doing payroll, rent, marketing, sale, I'm doing all the stuff of business and I'm basically never doing fitness. And so unless you want to be a personal trainer, unless you want to do hairstyling, that's like the true passion, then eventually you're going to get out of it. And so if you want to keep that cup filled, you just find a way that you can still scratch that itch in a way that doesn't disturb the business. If you try to start a second business because you have this other thing, it'll also quickly become another business that isn't the passion. I've done a lot of quarterlies and strategic planning for portfolio companies. I've been to enough of them to know how to do them well and how to do them shitty. And so what I want to do is give you kind of a framework for leaving here with the highest leverage, action items to go home with. And then we'll do all the Q's and A's. Okay, number one is what? Number two is how. Number three is who? Okay, you have to be able to track any of your initiatives to increasing number of customers, increasing ltgp, so lifetime gross profit or decreasing risk. And so I use this as the first filter when I'm at a strategic discussion with the team and saying, okay, we have limited resources, Obviously we can't do everything we possibly want to do. We limit time, money, human capital that we have to then invest. Because that's fundamentally why we like to think about every entrepreneur as an investor, fundamentally within the assets that you have, and we have to get a better return on it. Right. When we're looking at this, I think, okay, in what way? Can I clearly see that this investment is going to either get me more customers, make my customers worth more, or decrease the risk that the first two things don't continue to happen in the business? Once someone says, hey, one of your employees says, hey, I think we should redesign our website. Which for some reason is something that a lot of teams just love asking to do. I hate our website. I'm like, well, you know what? It converts, so just chill. But you say, okay, fine. Tell me how it increases the number of customers, increases lifetime value, or decreases our risk. Now, if they can't even ladder it up to that, then it's like, maybe we shouldn't do it. Great idea, though. Come back later. If they say, okay, well, I think it would get us more customers, then you can say, cool, how many by how much and how much time and effort is it going to cost us? So then we have an expected return and an expected investment that's going to take from us. Once we understand that, we can then say, okay, how likely is that? And is there another thing we could do for the same investment that would get us more customers or increase value, lifetime value more? And most times, when you have the entire universe of options, that one thing probably isn't the best one. And so that gives me the big picture of what do we need to do? We're gonna do this thing. What's the what? We're going to increase number of customers. Cause that's the thing we have in the business. Okay, cool. So let's say that we're gonna say everything else is okay in our business. We just need to get more customers. Fine. So the second order that we go through is, how are we gonna do that? Are we going to do more? Are we going to do better? Are we going to do something new? Nine times out of 10, especially if you're the 0 to 1 million category, which is about half the people here, you probably just need to do more. And I'll give you an actual, like, a rational explanation for this. If you have one sales guy and you go to two sales guys, you can double your sales. When you're big and you've got 20 sales guys, sometimes you just think you can get 20% more out of the guys you got, and that'll be less effort than hiring and training four more guys. So it'd be a 20% improvement versus me increasing the size of my team by 20%, which would be getting whatever, 4.8 more sales guys. So call it five sales guys that have to hire, train, recruit, and make sure, they were good. Well, which one is more likely and which one is faster to do? Well, once you get big enough, sometimes you get bigger gains on better. But once you make that 20% improvement now, you might have to go back to more. So in the beginning, a lot of times, more is the answer without doing anything new. When you get a little bit bigger, sometimes better and more, alternate more frequently. And then when you can't do any more, any better, that and only then is when you look at new stuff. And so most times, entrepreneurs love doing new stuff, and it's usually the last thing the business actually needs. So right now you probably have a way to get customers. And you're like, I don't know if it's scalable. Yeah, do 10 times more of it. It's probably scalable. So once we know our what, okay, we got to get more customers. What's our strategy? We're going to go with more. Then we finally have, okay, who's going to own this? Who's the person who's going to own this? And I can tell you just from experience that if I've had the Same quarterly objective 2/4 in a row, and we feel pretty solid about what our more strategy is or what our better strategy is to get more customers or increase lifetime value, then we usually have a who problem. It's like, hey, Sandra, you've been in charge of this two quarters in a row. For me to think somehow, magically, this quarter is going to be the quarter after the first two times you messed it up, that's a me problem, right? I'm the one who's making terrible judgments here. Once you go through these three frames, I remember Michael, who was here, he sits on some of the portfolio meetings. He was like, you know, it's crazy. I expected there this is when he started with us, he's like, I thought there was going to be way more like, hey, do this. And this one judo move. He's like, but 90% of the time, you guys are like, becky sucks. Let's move her over. I think we need to replace this person. Well, how's recruiting going so we can scale up this department? That's usually what the discussions are. Because past a certain size, it's all about people. And so you need very little of this when you get big and a lot of this. And when you're smaller, you feel like you need a lot more of this and very little of this. Okay, so that's my little framework for you guys in terms of thinking through what you're going to leave with here today with your sticky note of things that you want to do is make sure that you can very clearly see is this thing going to get me more customers, is going to make it worth more or is it going to make my company worth more by decreasing the risk? And if that's what the objective is, am I going to pursue a more path, a better path or a new path? And once I know that, who's going to own it and buy when? Yes sir, we offer a checking account that pays 5.25% interest. 125 million. FDIC insurance.

[Audience Member 1]

Just wanted to get your perspective and.

[Alex Hormozi]

Insight on who the ideal customer profile would be to offer something like that to. I mean it's a very interesting offer. So I mean who here is getting 5% on their business cash? Probably no one. You could grow that on any channel right now because the vast majority of business owners aren't doing it. And so like it's just business owners and then you'd probably just want the business owners to have the most cash on hand. So probably businesses that have higher capex would be the ones that would make more sense. So I would say like physical products businesses will be helpful because they have to like they always have to keep cash on hand so they can buy more inventory like manufacturing businesses, things like that, those are the ones that are going to have the most cash. Otherwise like service based businesses typically just keep what they need in payroll for a month or two whereas some of the other ones want. You basically just want the ones that have to have the biggest war chest because for you guys it's basically just how many dollars are in their account. So it is very much a whale business. And so I would look at and you probably already have some data on this in terms of your existing customer base. I would cut the crap out of that data and just say okay, okay, who's the 80, 20 of this base? Try and do it by industry because size obviously like the bigger the size the more money they're going to have. But if I could also get size times industry then I would just start there. It makes my search a lot narrower. My messaging can be more targeted based on outreach or how are you guys doing right now? Outreach? Are you doing content or are you guys doing. Yeah, cold outreach? You're doing cold outreach. Yeah, I mean I think it makes sense. You can be more highly targeted. Outreach is probably the strategy. I do. I think content to supplement that is going to be important because they're going to give you all their money Right. Like that's kind of thing. So they want to make sure that you're legit. And so I think putting having the content there is going to do more on the conversion side than on the lead gen side. So that when you're doing your outbound stuff, people are going to come to the page, they're going to look at all your stuff and then be like, oh, these guys are legit. Maybe I will show up for that call. Right. So it's like, that's for all you guys who aren't. So if you do outbound or even if you do paid ads, content is kind of like this really nice baseline layer that you want to have. Just because if they click the ad, the next thing they're going to do before they like actually opt in or show up for the call is they're going to like, look at you before they're going to go give you money. Like, that's probably what you do too. And only the crazy people don't do that. So have that baseline layer of content. And I think for you guys especially, I would basically want to increase their problem awareness of this is how much money you didn't know that you're losing. And if I were trying to sell to business owners, a lot of business owners don't like other people making money on their business. And so you're like, let me show you how much money everyone's making on you. And I would like to just put that back in your pocket. Solid. Thank you.

[Audience Member 2]

Hey, Alex, thanks so much for all the content you put out. It's been a great help. I help people avoid surgery, especially in the knees. That's what I'm biggest on on YouTube and knees. Knees. Knee arthritis is our biggest seller.

[Alex Hormozi]

Cool.

[Audience Member 2]

I have four other programs for other knee conditions.

[Alex Hormozi]

Do it yourself type programs.

[Audience Member 2]

Do it yourself.

[Alex Hormozi]

Okay.

[Audience Member 2]

We're starting to build the do it with you service as well. Was going to go into writing a book for all knee pain and including all of it in there. But now I'm thinking maybe I should just niche down on knee arthritis since that's the biggest thing. Going back to your more better how sure. Also you said stick to one channel if you're under a million, which that's where we're at. Approaching a million.

[Alex Hormozi]

Are you do. Is it via content? Is that how you have all your customers?

[Audience Member 2]

YouTube.

[Alex Hormozi]

Okay, cool.

[Audience Member 2]

What do you think? Should I stick to knee arthritis or write everything about the knee?

[Alex Hormozi]

I think knee arthritis, that's your number one seller right now. I think it would make Sense to continue to do that stuff. I mean, to me, going knee arthritis to knee doesn't feel like, you know, this is a major like, oh my God, I can't please talk about knee stuff now. This guy's just like, he doesn't have authority to talk about this. Just talk about arthritis, man. You know, like, I don't think you're gonna have that. So I'll say this, this is kind of one of those unique scenarios. It's not that unique, but like, if you talk about knee stuff in general, I don't know. I have knee arthritis, so I'm problem aware, not solution aware, as a customer or a prospect. And so I think talking about knee stuff in general, all they know is they have knee pain. You can then help them diagnose the type of pain and then funnel them to whatever solution that they have. Can you solve other problems besides knee arthritis?

[Audience Member 2]

All day?

[Alex Hormozi]

Okay, great. So then, yeah, I think that makes sense in terms of front ends, but in terms of increasing the monetization of the business. If I were to build this, if I were to buy your business tomorrow, I would do the done with you service first. That'll increase your cash flow for the business and they can reinvest in more front end stuff.

[Audience Member 2]

Like the book, right?

[Alex Hormozi]

Sure, exactly. So you have your front end, now add the back end, increase cash flow, and then you can put the people in place or free up some of your time so that you can put more time into more front ends.

[Audience Member 2]

So I'm thinking, right, I'm thinking of it. Right. The book would be like an adding another channel whole distraction versus if I just keep chipping away at YouTube.

[Alex Hormozi]

I mean, the book's not even a channel. It's just like a lead magnet. Okay. The book's not going to do a ton, to be really honest with you. Like, the only way books actually become a channel is if you climb up the rankings, get a zillion five stars on Amazon because people buy it and love it and then Amazon actually becomes your channel. They become a traffic source for you. So like we sell like 2000 books a day on Amazon. So that means that there's some people who obviously come from my stuff and then go to Amazon. But there's tons of people who just search marketing on Amazon. And my books are number one and number two for those people. They don't know who I am. And so there's a lot. Anyone find the book and then find my stuff later. Who's in here? Okay, so like that, that happens. But that's a very small amount compared to everybody else in this room. And so you doing the book is not going to, like, really do much. I think if you take that same content and just make it public in terms of video format, probably a lot faster for you. It'll probably make you more money. Cool.

[Audience Member 2]

Thanks, Alex.

[Alex Hormozi]

Yeah, you bet. Yes, ma'am.

[Audience Member 3]

Hi, Alex.

[Alex Hormozi]

Hello.

[Audience Member 3]

I talked to you before on that live. You don't. I'm the writer, anyway.

[Alex Hormozi]

Yeah, I remember.

[Audience Member 3]

I have two businesses. One is a personal brand.

[Audience Member 1]

Right.

[Audience Member 3]

So the typical. I'm a writer, speaking engagements, that whole thing. I came here, though, for help with my academic branding company because I teach tenured professors how to build brands, basically how to be me because I'm a cool niche. Yes. Branding company.

[Alex Hormozi]

They have money and no business savvy. It's great.

[Audience Member 3]

Yes, exactly. My question is I'm running the branding company through LinkedIn.

[Alex Hormozi]

So, like outreach and content. Yes.

[Audience Member 3]

That's where all the sales funnel is coming through. My personal brand is crushing it on like Instagram and TikTok and stuff. Right?

[Alex Hormozi]

Sure.

[Audience Member 3]

But the branding company's not doing that well. And I just want to know, am I doing too much? Should I just focus on my personal brand stuff and just put the branding company?

[Alex Hormozi]

So what's the difference? So the personal brand stuff is what I understand. The avatar for the academic tenure thing. Yep. Who's the avatar for your personal brand?

[Audience Member 3]

So it's basically I teach creatives how to get to six figures. Basically, what I've done as a writer is what I. It's all directed towards creatives. Basically, I'm teaching creatives and PhDs the same thing, how to build their brand and monetize.

[Alex Hormozi]

It probably makes sense to marry those two things. Yeah.

[Audience Member 3]

How do I do that?

[Alex Hormozi]

I mean, make content. You want to make content about the stuff that you sell. Right. Like, whatever you make the most money on is the stuff you should talk about. The thing that'll differentiate your examples is like, you could start talking about the PhD stuff and just weaving those examples into your personal branding stuff.

[Audience Member 3]

Yes.

[Alex Hormozi]

They don't feel like different businesses to me. If you teach the same thing, then it's just like I have two avatars that I teach the same thing to.

[Audience Member 3]

Right.

[Alex Hormozi]

And my personal brand, I don't do much content on this other avatar. In which case I'd ask, why do we have the avatar?

[Audience Member 3]

If I start talking two PhDs on my personal brand, will I lose those creatives, though? Because now I'm not specifically talking to them.

[Alex Hormozi]

Totally.

[Audience Member 3]

Right.

[Alex Hormozi]

Yes. You'll lose them on the content that's not about them, right? So if you made one piece of content that was about creatives and then one piece of content, that's. I mean, if you look at my content strategy, right? Like, I think about it from terms of slices, like, so I have school, right? So school is for people who are. They want to start a business. And right now that's still 70% of my audience because I talk about business stuff, and then 30% of my audience is business owners. Guess who's a hundred times more valuable that side, right? But I still have school and I have the investment. And part of the reason, just so you guys know, the reason I did that investment is I was like, okay, I have all these people who are like, help me start a business. I'm like, nah, like, why don't you just go to school and I'll make a way that's scalable for me. I mean, I can't help 10,000 people a day. It's not feasible. But with school, it's like, I can do that. I can kind of just direct them in a way that I can help one to many. But then for the businesses, then it's like, go here. And so if you see my CTAs, it's like, hey, if you're a business and you want to scale, go here, and if you want to start a business, go there. I will sift traffic if it makes sense because they're still related. It's just what level of stuff I'm talking about now with your thing, I think it's okay for you to talk about the other stuff that you do in your business. And I'm guessing you could use your LinkedIn business as an example in your personal brand. Exactly. It feels like it's more separate in your head than it is in reality. If you teach the same thing, you just have two avatars. So just use them as different examples.

[Audience Member 3]

Okay, I got you.

[Alex Hormozi]

I mean, that's really it. And the thing is, if you teach a process, the process can work for just about anyone. The examples are the thing that really makes people think. Like, I don't use a lot of E commerce examples, mostly because I don't really like a lot of E commerce brands. Nothing wrong with them. I just haven't. I haven't done as many of them. I like a lot of service. I like financial stuff. I like software. Like, 40% of our portfolio is software. I like brick and mortar. Those are games that I know how to play really, really well. And so that's what I focus on. Those are all my examples. And so in this room, if I slice this, it's like 90% here would be covered with service brick and mortar info and SaaS. So your examples will tell your audience who you're looking for. The method or the thing that you teach is really just like the vehicle. Does that make sense? Yeah. Yeah. So just think about it like that. That probably applies to more than one person here. That's how you can basically segment yourself in the audience.

[Audience Member 3]

Thank you.

[Alex Hormozi]

Does that help? Yes. Okay, cool. Yes, sir.

[Audience Member 4]

Something you said to me yesterday, which you've said to me like 50 times already, but it only sunk in yesterday was the easiest thing to sell someone is more of what they already bought.

[Alex Hormozi]

Yeah.

[Audience Member 4]

In that van process, I identified, like straight away, flashing red lights. The biggest thing to fix is our LTGP has got to increase. We currently sell a 5k front end, which is a certification.

[Alex Hormozi]

For what?

[Audience Member 4]

For Pilates. We teach online. We teach people to be instructors.

[Alex Hormozi]

Cool. Love it.

[Audience Member 4]

We currently have zero backend on that. The obvious thing is sell them more of what they already bought. So my question is, I heard what you said about the school community and what you found was you don't want to overwhelm people. So you do one live call a month, one piece of content a week. Our front end is priced at 5k. I want to price the back end higher because obviously you got a less than 100% uptake, so you want to double your LTGP, you gotta have a higher price. So how would you price it? And how would you, you know, how would you structure it?

[Alex Hormozi]

You're at 5k.

[Audience Member 4]

Yes, just.

[Alex Hormozi]

I would do this. So there's basically two options. So yesterday I talked about, like, please have some sort of auto renewal, everyone. So this would be applying to you. So the auto renewal level, I'd probably do it like 997 per year. And so think about this like you're in the fitness world. So like CrossFit, for example, like, you basically just get the name and then you have to get certified through L1 or whatever. That model works if you defend the brand. And there are some benefits that you can use, like nsca, if you're familiar with them. They certify personal trainers, and the model there is. You pay for whatever your boot camp is, two days, and you get a certification if you pass the test. Awesome. Now you're allowed to be a personal trainer. And then they have an annual renewal that's significantly less, 500 bucks, whatever. And that allows you to say that you are an NSCA certified personal trainer. And they stack a couple benefits here. So they say we will give you insurance up to a million dollars on any injury that occurs. And so then personal trainers were always afraid of like, what if I hurt somebody? It's like, don't worry, we got you covered. And so for 500 bucks a year they have the insurance and they get to say the name. And so, and most people, especially beginners, think they need certifications. We all know by the way, that's not true. But they think that and so sure, we can sell that to them. Now the ascension part is probably going to be, I'm going to guess, because I don't think Pilates instructors make a ton. I'm going to guess it's somewhere in the like if you just kept people honestly like in 5 to 5 to 10k a year, that would be the price point that I'd be looking at for the Pilates instructors. And so when you sign someone up, you say, hey, it's 5,000 bucks. It renews annual at a thousand. Here's the benefits of renewing annually, by the way. Global insurance policies, you could run like 90% margins on this. So and the certification margin is 100%. That's cool. So they could just do that and then get a community, very simple delivery. And then the upper level is like, hey, we meet twice a year and we talk about the strategies of like increasing your income, getting more side clients and like the more businessy stuff. And I think in that price point you'll probably be okay. So this is something I would test. I could start at 5 and then say it renews annually at 5 and you get these other benefits. And if they're like nah dog and you hear that a lot of nah dogs, then just make the standard, the 1k and then upsell them, you know, a month or two in.

[Audience Member 4]

So you wouldn't do like a one off, 5 or 10k follow on program, you'd make it renewing.

[Alex Hormozi]

Yeah, I like recurring. Okay, how do I sell that? Right? So if you're running, call it three events a year for your base, right? Before you have your events, you hit up everybody who's been sold into this but hasn't been sold into this, right as the events come up and then they have this nice deadline that they have to buy, have to buy, have to buy and you give some sort of incentive. So a nice one would be like 5k, we'll put it towards the 10, which means it's 5 if you do it before the first event that we have. That's what I would do. That's a very simple model.

[Audience Member 4]

Thank you.

[Alex Hormozi]

Yeah, you bet.

[Audience Member 5]

Hey, Alex, how are you doing?

[Alex Hormozi]

What's up?

[Audience Member 5]

Yeah, my name is Saeed. After recovering from my addiction, I started, like, a YouTube channel.

[Alex Hormozi]

Cool.

[Audience Member 5]

Took off in three years. I have, like, a community then. I follow you. I started my business then after actually reading your book, I 6.8 my business within four months. It was great, you know, and so.

[Alex Hormozi]

You overpaid for the 99 cents. Okay.

[Audience Member 5]

How you manage between how you balance between helping people and not focusing on money, especially, like, if the business industry, like, especially have a personal brand in the Middle East. Where were my businesses located? Like, there is a lot of, like, crap in healthcare. We don't have really good addiction treatment. So I think a lot of people are following me. I really want to help a lot of people at the same time. But also, I love the entrepreneurship. I love the money.

[Alex Hormozi]

Yeah. One of the things that happens, like, when you start growing your business is you have a customer that you kind of got into business for, and then you start falling also in love with business. And sometimes your love for the business can exceed your love for the customer. And so then people are like, oh, you know what? I love hairdressers. And so I also love helping them. And I want to find a way. But, like, I have this business that I do that, and I don't want to get distracted. Right. The big thing that I think entrepreneurs in general, like, we all do this, is we think we need to monetize everything. And I just don't think that's the case. If you want to help a million people, sure, then you can help a million people with the content you make, and then you can monetize through the elite. And so you can sell to the few and help the many. So if you think about what I do, I make the majority of my money on my portfolio. Just be very candid with you guys. Like, we make a lot more on the deals that we do than on the tickets you guys bought. I get my fulfillment from making all the content I make. Writing the books that I do. That stuff fills me up. But I do the deals because I also like making money. This is why I'm not a big, like, follow your passion thing guy. Because I started being really into fitness, and then I started a gym, and then I did well with my gym and then realized that nothing in my day had anything to do with fitness. And I'm doing payroll, rent, marketing, Sale. I'm doing all the stuff of business and I'm basically never doing fitness. And so unless you want to be a personal trainer, unless you want to do hairstyling, that's like the true passion, then eventually you're going to get out of it. And so if you want to keep that cup filled, you just find a way that you can still scratch that itch in a way that doesn't disturb the business. If you try to start a second business because you have this other thing, it'll also quickly become another business that isn't the passion. You can say a certain percentage of your. Like, if you want to tie the two goals together, you can say that no matter what, we always give 5% or 10% of our profit every year to help these cases. And so then that way it motivates you to make more and more money, which you like, because you know that the more money you make, the more people you help.

[Audience Member 5]

Thank you.

[Alex Hormozi]

Yeah. Shoot.

[Audience Member 1]

Should I go into a bulk or a cut? No, I'm just kidding.

[Alex Hormozi]

Bulk for sure.

[Audience Member 1]

My arms just shrunk 2 inches. Nah. So referring to your sales fulfillment continuum.

[Alex Hormozi]

Sure.

[Audience Member 1]

So you basically recommend that starting off, smaller businesses need to prioritize the easier to sell, harder to fulfill. Additionally, like, higher ticket, same category. So in our particular business, at least from my understanding, the lower ticket is easier to sell, harder to fulfill, and the higher ticket is like the opposite.

[Alex Hormozi]

And so easier to fill and harder to sell.

[Audience Member 1]

Yes.

[Alex Hormozi]

Interesting.

[Audience Member 1]

At least from my understanding, it could be. I could have a strong belief. So we do short term rental management, Airbnb management. So, like, with that understanding, would you recommend that I still do, like the lower ticket, potential client, or do you recommend I still go high ticket as we scale?

[Alex Hormozi]

Yeah, it's a great question. I'll give a different example. To answer the question. So I had a lady a couple months ago who was in the same position as you, and so she did hairstyle stuff. And so she's like, okay, I can teach hairdressers how to do this particular type of cut. So that was her low ticket thing. She's like, or I've got this business coaching thing that's like $15,000. So one thing was 15 grand, the other was 2 grand. And so I just asked, what's the biggest LTB to CAC? What's the LTB to CAC ratio for each of these products? And so for the 2k product it was 30 to 1, and for her 15k product it was 12 to 1, but this one was more Money. And so I was like, okay, well we've got bigger LTV to CAC here. So the only reason I wouldn't do this is if there's way fewer of these clients, but there's way more hairstylists that just want to learn a new style than people who want business coaching. I was like, okay, so we have a way bigger market and a bigger discrepancy in LTV to cac. Well, let's just do as much as this is human possible and then take this thing and put it behind. So you acquire customers as profitably as humanly possible and then your focus goes on ascension. Does that make sense? Yep. And so within your thing, if you have one thing that's really, really easy to sell, use that as the front end. And then basically your focus as the entrepreneur is on the ascension for those people who then become qualified to buy the more expensive one.

[Audience Member 1]

So basically like having two offers depending on like who's coming in.

[Alex Hormozi]

Basically, yes, perfect. But the idea is that you want to sell, you want to sell the thing or want to promote the thing that has the highest LTV to CAC discrepancy, because then you're profitable in the acquisition and everything else is gravy. Makes sense. Appreciate it. Yeah. Is there.

[Audience Member 6]

Hey, Alex. My business is AAVE AI. We're a mobile app that allows realtors to capture professional quality photos using just their smartphone. Instead of needing to hire a photographer.

[Alex Hormozi]

Cool.

[Audience Member 6]

They just use our app. It's a credit based system. So one credit is one photo. Basically offer is don't pay for photos on your next listing. Here's 25 free credits just for signing up. No credit card required. Okay, my question is, how do we monetize from that offer and someone having a good experience with the app to getting them to actually become a paid customer? That transition, I think is the biggest green light.

[Alex Hormozi]

Okay, so are you getting a lot of people who are doing the free credit thing?

[Audience Member 6]

So we're beta phase and we're launching live right now. Beta phase has been amazing. Everyone loves. We had zero percent churn with our smaller users. It's actually a charge of beta.

[Alex Hormozi]

Okay.

[Audience Member 6]

We are actually are.

[Alex Hormozi]

Okay, good. Otherwise give me a little poke. Okay. My turn on my book is zero too. I'm fucking with you.

[Audience Member 6]

People are skeptical, right? Because it's a novel new project kind of riding this whole AI way. People skeptical. So once they use it, once they love it, we have people like forcing growth. In our beta phase, we're like, stop sharing. It's like a good Problem to have. Yeah, just that sticky point of like, here's the offer. Cool. Now how do we monetize them?

[Alex Hormozi]

Well, you're going to charge for the credits after the first 25. Right?

[Audience Member 6]

Right. But if they, in a world where they only use 20 credits, they have a 5 credit remainder. Right. Like how do we retarget them to get them to come back for the, the second shoot? Hopefully they just do it on their own or just kind of.

[Alex Hormozi]

Yeah.

[Audience Member 6]

How do we make that process just as smooth as possible with like removing that friction there? Right.

[Alex Hormozi]

You'd have to find a way because when they're coming to you, they have a house they need to sell. Right. So then they have that. Now I would imagine that you're going to have. Because the way that the realtor industry is, it's like 95,5. It's like 5% of realtors sell 95% of houses. And so you're going to get a ton of the intro realtors who only have one house that's been sitting on the market forever. Because they don't. They're not real realtors. And so they'll use up their 20 credits and then they'll still sit there and they'll get another house in a year or whatever. And those are useless for you and a pain. So I think it's targeting the super users and probably the brokerages is probably like if I had like what would be my fastest way of doing this is I'd probably do outreach to brokerages because they're going to have 10 agents, 20 agents, 50 agents underneath of them. And if you sell the brokerage on it, then you say, listen, our average, like do you have stats around average sale of house that uses your pictures versus not that uses your pictures?

[Audience Member 6]

Not yet. But we have before and afters and.

[Alex Hormozi]

Like, dude, that would be the first stat that I capture.

[Audience Member 6]

Okay.

[Alex Hormozi]

Is okay, figure out what the average home sale length in the US is and then look at the average home sale length of people who use your pictures, show the graph and then say what is this time to close worth to you? And it's going to be far more than whatever you charge for your credits.

[Audience Member 6]

I think one of our big value props is like you could use our app and literally list the same day instead of hiring a photographer who's not only more expensive, but it might take you a week by the time you schedule, get edited photos back and actually go live.

[Alex Hormozi]

Yeah. So those are two different speeds. So one is speed to close, the other speed to list. And I think Those are separate but also really cool. But in terms of the ascension process, one, I would go to brokerages because it's going to be more leverage. You can get 50 agents at a time. And then in terms of getting the realtors to come back, I would, I mean, this is me. I like hopping on the phone with people, especially in the beginning. And so I'd be asking, how many houses do you have right now? And so if I can get all of the houses, you know, like, can I get them to buy a big bulk of credit? So they have 10 houses worth or 20 houses worth. Getting a prepaid increases cash flow for you and it gets the commitment.

[Audience Member 6]

Yeah. One thing we want to do is like sell a yearly plan, but then also offer like an afterpay situation where they don't have to pay in bulk, but we get the cash collected and then they can kind of use the credits throughout the year.

[Alex Hormozi]

I would use the audible system since people are already familiar with it. So they get credits every month.

[Audience Member 6]

That's what we're going to do. And then when audible, when you cancel, you lose all your credit if you choose to cancel. So you kind of have that way of reducing.

[Alex Hormozi]

Yeah, I would just use the credit system. We have the largest portfolio company we have. That's how our software works is it's a usage based credit system, but they still bill annually. Thank you. Cool. Yes, sir. Yes.

[Audience Member 5]

So my partner and I came here with the intention of to learn how to grow our business.

[Alex Hormozi]

Sure.

[Audience Member 5]

Ten med spas.

[Alex Hormozi]

Oh, sweet.

[Audience Member 5]

Yes.

[Alex Hormozi]

Love that space.

[Audience Member 5]

And then after yesterday when you talked about like building your company for, to sell it, I was like, okay, we can, we could probably do that. Like that's, that's something that made all, you know, perfect sense. And 4 million sounds pretty good and better than the cash cow that we make now.

[Alex Hormozi]

How can it help?

[Audience Member 5]

The way, the way that we build it was different partnerships, different states, different. We like we opened one by one. The strategy always changed and we grew. And now that we figured out now we have the winning formula.

[Alex Hormozi]

You have a model.

[Audience Member 5]

Yes, we have the perfect model. My question is really, do we go back with the existing partnerships that we have with like non compete contracts that we have with certain partners in different states? Do we go back and change the existing or do we leave it like a cash cow and slowly grow it and then open a new company with the intention to sell it from scratch with our winning formula, Grow that and try to sell it in like 40?

[Alex Hormozi]

I think you can definitely merge the companies if you're familiar with. Do you know what a private equity roll up is? So basically with a roll up you have many businesses that are similar. So let's say I'm doing a roll up for chiropractors. So I would go knock on doors and be like, hey, Mr. Chiropractor, can I buy your business? And so they might say, yes, sure. But If I get 10 chiropractors together, they have John, John Smo, chiropractor, Jim Crackback chiropractor. They have all these different chiropractors. That's not a very valuable asset yet. So I have to get them all to convert to the same CRMs, same back end systems. I can consolidate all the payroll so I get all of that. I can centralize the phone system so it goes to one person. And so I get lots of EBITDA that drops to the bottom line just by consolidating systems. And then I get them all in the same colors, same logo, same whatever. And so then you make the deal where you say, hey, what are your partnerships? Like 50, 50 or like what's the deal?

[Audience Member 5]

Yes, they're different based on the situation because we kind of sure always improve the deal as we went.

[Alex Hormozi]

Understood. And so yeah, once you have more proof, you could ask for more. I get it. So what I would end up doing is probably making some sort of Holdco and saying I'm going to try and swallow all of these up. You guys are going to get way smaller slices of Holdco. So you might get 5% of Holdco, but we're going to sell holdco for like 200 million. And so the thing is, the way you explain this, your individual asset is probably not that sellable. Like let's say they own 50% of one of your med spots. Right? You being able to sell this is going to be really hard and you're probably only going to get like a 3x multiple on it because buying a one off medspa is just not super valuable. If you sell with us, we're going to get 10x and so your half is still worth more. The smaller slice of this big thing is worth more than the 50% slice of this smaller thing. And so Basically Holdco takes 100% ownership of the new entity, of the old entity, and then they get a tiny slice of the big thing that owns everything.

[Audience Member 5]

If we just sit down and think of a new name, new concept, new color, whatever, and just continue growing parallel and then we can just keep the partnerships and make a new one from scratch with the winning Formula without these partners, Wouldn't it just make more sense to do it like that? If it's the same effort, like to.

[Alex Hormozi]

Change everything, do you think it's the.

[Audience Member 5]

Same effort I think we created? Not a mess.

[Alex Hormozi]

But let me explain why private rollup exists. Because it's much easier to combine 10 than start 10.

[Audience Member 5]

Okay.

[Alex Hormozi]

And so if you have the relationships, then it's like, let's just. And I'm sure you use the same backend systems probably because you. Yeah, right. You just have to change the fucking logo.

[Audience Member 6]

Not even like.

[Alex Hormozi]

Right, okay. So like you're already like 90% of the way there. This is why I'm bringing this up. So you're 90% of the way there. And when you see how much money that you would make in being able to sell all of these 10 for your slice, you're not going to want to not include those.

[Audience Member 5]

I see.

[Alex Hormozi]

So I would do that. If you have the better model. The smart cookie move is let's go to other med spas that already exist.

[Audience Member 5]

We've done that also. Some of them are like that.

[Alex Hormozi]

Right. So you want to convert. Like that's the model. Like this is the private equity models. This is who we're looking for. They do between 1,3 million. They got a solar guy, he's kind of older, he wants to get out, whatever. And we take over with our systems and then we consolidate. We put everything central and so we get more profit. We have way better systems. And that's how you can gobble up a marketplace. And then the equity arbitrage that you have is you can buy for 3 and sell for 10 or sell for 12 when it's big enough. Like that is the PE play. That's how it works. Okay. Could you start scratch? You absolutely can. I mean, obviously you guys are good at. You'll make money either way. It's just a question of which one will make you the most money the fastest. If you already have 90% of the conversion here, I would lop everyone in. They don't have any voting power. I have all the voting. You guys don't. You have to agree to these terms up front and then just make the deal. Okay. Thank you. And the day to day wouldn't change. It's just what the. What your ability to sell changes. That's it.

[Audience Member 6]

And I wanted to say thanks for everything.

[Alex Hormozi]

No. You bet. Thank you. Yes, sir. Hey, Alex. Hello. I am a dentist. I created a course to teach dentists how to do clear aligners. Okay. Like Invisalign. Yeah. But brand agnostic. Yeah. Went all in on this last year, so I don't practice anymore. My wife helps me with a lot of, like the backend financial stuff. Yeah, I struggle with whenever the numbers come up. She's big into data and like, I've learned super important. I tend to get just like really emotionally charged about that. Okay, sales numbers down. You're like, I hate this thing like yesterday. Big roller coaster. Yeah. 0 for 10, let's kill everybody. Partially that, but also she'll just kind of tell me, like, hey, like, business isn't doing that great. And then kind of like, kind of living in my own, like, head. Sure. I guess, like, what is a better way to kind of like approach that and just be more. Still have passion for the business, but, like, remove the emotion out of like, the decisions. I mean, this just gets into like, anxiety management, which is, you know, for me. I mean, I talk about my philosophical views because I just remind myself that I'm a little monkey on a tiny little rock in the middle of a galaxy, that no one gives a shit and I will die and I will be forgotten. And so the fact that my page isn't converting that well just doesn't bother me that much. And so that's how I get around it. I'm just being really honest. So, like, I mean, I go through that mental loop de doop, like probably 20 times a day. And so, like, right when I'm like, oh, I'm about to be upset, I'm like, oh, wait, nothing matters. Okay, got it back. And so, I mean, that's how I diffuse me. I think everyone's a little bit different. Some people work out, some people, you know, do Kumbaya, whatever. That's just worked for me. But I think probably answering the question is like, what am I so afraid of? You have some emotional charge because you're afraid of something happening. And so a lot of times it's like the fear of it is a lot greater than what the reality of it is. Because the absolute worst case scenario in this entire thing is that you go back to practicing. Yeah. Your worst case is you're a rich dentist. Like, what are we talking about? You know what I mean? So it's just like the only upset I have is that my greater ambition doesn't achieve. But, like, I will be able to eat and live in the best neighborhoods and travel whenever I want and make my own schedule. Like, that's guaranteed for you. It's just, you know what I mean? I just don't want to go Back to practicing dentistry. I get that. Yeah. But I'm saying, like, the worst case is that, which is like, you know, there's people who have it a lot worse. I'm just being real. That's how I think about it. But yeah, I mean, if your wife brings up the data, then it also might be just like, hey, when she brings it up and how she brings it up, it'd probably just be a conversation, which is, okay, if I just get off stage and I just did a big pitch and then you're like, that sucked. Not the right time. Right. Like, give me a cool down period. And if it's like, hey, when you have bad news, by the way, for everybody, Humans have like a really, really big capacity to take bad news if you brace them. So they train doctors on this and you might know this, but they train physicians on like, if you have to say like a family member died or they have cancer, there's some sort of big bad news. They train the doctors on how to get someone to brace themselves and say, hey, I have bad news. You might want to sit down for this. Right. And so people are like, okay, I'm ready. And so training her on how to give you news would be really valuable. Thanks. Yeah.

[Audience Member 2]

Hey, Alex. My name is J.C. i have a company called Master Injector and we provide education and training to people that work or practice at a med spa. We've been doing live events.

[Alex Hormozi]

We have three med spas here today.

[Audience Member 2]

So on the live event side, we charge about $4,000 for the weekend and then we're doing virtual events. And now we're trying to leverage. We have about 10,000 followers on Instagram, about 10,000 through our database. And we want to do a membership model that's more of an online education. I was curious to see how you would approach this for the strategy to start this membership.

[Alex Hormozi]

So I think selling workshops on the front end is really good because people understand it. They get a big deliverable. The reason I do it right, is you can control about the experience, make sure you don't over deliver and everything. And I think that I would probably sell it on the back end of that. So front end would be the workshop, the back end would be the membership. And how long is the two days, the workshop. Okay, yeah. With two days you could sell the membership and then we just have to think about what are the benefits of being a member. You can have the continued education, but no one's going to really watch it anyways. And so I like the kind of like magical Things like, the reason I like that insurance thing so much is that they don't have to do anything and they just get this benefit. I would imagine injectors also have like, they have hard costs. Right. They have to buy the stuff Moderna or whatever. Right. And so if you did group buying for all of those injectors, you can improve their margins. And so basically, if I know the average injector, I can save them $5,000 a year on the hard costs that they're going to have for their injectables. Then my membership at $2,000 a year, they'll never cancel because why would you? It's like you can be a solo practitioner or you can be with the co op and the difference in price is obvious. And we'll give you insurance in case you inject somebody in the eyeball. And then those are probably my two major benefits. You can include the education piece. But I would say that like education mostly is commoditized. I think those other things would be more valuable to people because it's like this covers your downside, this drops to your bottom line for sure.

[Audience Member 2]

So value stack can make it sticky.

[Alex Hormozi]

The discount would make it sticky. Basically, as long as they're practicing, they're gonna buy through your reps that you can negotiate down the rates for because of volume. Because you have a lot of people, right, who are doing the injection.

[Audience Member 2]

Thousand customers.

[Alex Hormozi]

Yeah. So you have like, think about that kind of volume compared to a single metspa. You have a ton of injection volume that you're buying or that is being bought in your community. I would go to Moderna or whatever and then be like, hey, I represent a thousand injectors, can you give me 30% off? Or whatever. And then with that you can put your markup on or you just pass that savings on in general and then you just like Costco. So they pass all the savings on and they just charge a membership. So just be that for the injections, add the insurance on top and then the baseline can be the continuity with the education and you sell that on the back of the workshop. Okay, that makes sense. Yeah.

[Audience Member 1]

I own a brick and mortar health and wellness business. Patients have to come in on a repetitive basis, 20 mile radius for marketing. So what I learned yesterday is obviously your ad spend, you want to get to about a million a month for that one channel. So right now we're about a six row as cool. So obviously I want to keep putting money into that. At what point do you say okay, because your roas is going to Go down as you put more of that money in because you should have such a limited market. At what point do you say, okay, now I need to change or add in other channels? Is it like a three to one? Is it.

[Alex Hormozi]

Honestly, if you're at six to one and are you selling high end health and wellness stuff?

[Audience Member 1]

We do regenerative medicine.

[Alex Hormozi]

Yeah. I think that you're. Something's wrong because most of the guys that I know who are in that space just murder it. Especially if you're local. I would basically keep tweaking the model until I'm getting like 15 or 20 to 1. Because when you're selling high ticket local, like you're going to get the best return. And like if I had to bet on one business that I for sure would get the highest roas for, it would be a pseudo medical business for local. Like you can absolutely just print for those businesses and so are you. So you're doing Meta ads right now. What's the process for getting lead to close?

[Audience Member 1]

Basically on Meta, it goes to a landing page. I have go high level running.

[Alex Hormozi]

Sure.

[Audience Member 1]

I have VAs that reach out, get them scheduled. They pay a deposit, come in and then basically from when they come into the office until close, that's pretty much a fixed. I mean we pretty much know how that close rate's gonna be.

[Alex Hormozi]

Okay, so what's the average ticket?

[Audience Member 1]

5,600.

[Alex Hormozi]

Why is CAC so high?

[Audience Member 1]

I don't know.

[Alex Hormozi]

Yeah.

[Audience Member 1]

I will say this. We don't get a lot of referrals.

[Alex Hormozi]

Okay. Do you have financing?

[Audience Member 1]

We do.

[Alex Hormozi]

Huh.

[Audience Member 1]

Average income in the area is 56 or. Yeah, 56,000. When we first started it was good because we were just doing chiropractic $2,000 care plans for a year.

[Alex Hormozi]

Yeah, you do. Like the neuropathy and all that stuff. Yeah, yeah, I got. I know, the blueprint stuff. Yep, got it. Yeah. It might be. And I don't like saying this because I never like doing outside forces, but you might have like a 10 out of 10 model in like a 2 out of 10 city for it. You know, I mean, there's a reason that Barry's bootcamp is only in 15 markets or whatever. It's just because that's the market that's going to sustain that price point and that margin. I mean the fact that you're getting six to one is great. Do you do the diabetic dinners and like all that stuff or no?

[Audience Member 1]

Yeah.

[Alex Hormozi]

So yeah. I mean you have the acquisition system. I don't know if your close rate's the thing that's suffering. But I mean, it seems like you have that down. I'm guessing you're basically trying to pool squeeze blood from a stone. Is that there's just not enough of those high ticket buyers in an area where the median incomes.

[Audience Member 1]

Yeah. And a lot of these people have low income, low credit scores. Sometimes they don't need to.

[Alex Hormozi]

You can't get a financing anyway, so you have to downsell. So like then you downsell the $500 thing and it's a waste of time.

[Audience Member 1]

And one of the things that I think is an issue why we're not getting referrals that we do have to downsell. So like, let's say they say yes to a 10k care plan, but they only get approved for 1800. We can only do like one PRP. They're not going to get the results. They get pissed off because they only have 5000 in their bank account. They just paid 1800.

[Alex Hormozi]

Yeah. I mean, there's a reason that brick and mortar, they're so specialized in terms of picking markets. Like, it's super important. And I'm guessing that you started this business, then you went down the rabbit hole of how do I make more money in this business. You bought stuff that gave you the sales system, you made a lot more money, and then you're like, okay, well now what do I do? So I think next steps would probably be accept the fact that that particular location might not be like. I mean, it makes money, obviously. So I would try and double down on how can I make this thing completely turnkey and automated without me. I would test Facebook ads in 20, 50 other markets, spend 20 grand testing, and then just look at your lead costs across those markets. And then you'll be like, oh, this thing is a fucking pocket. And then you can put your next location there. Got it.

[Audience Member 1]

Okay, thanks.

[Alex Hormozi]

Yeah, no worries.

[Audience Member 7]

Basically, I'm a real estate coach. I took your gym launch secrets.

[Alex Hormozi]

How'd you go to Jim Con?

[Audience Member 7]

Honestly, Gym launch secrets changed my life. I applied it to real estate coaching. I productized the entire thing. $8,000 high ticket. Absolutely amazing.

[Alex Hormozi]

You guys should read the book. It's pretty good. It's just actually how to do a coaching business. Not a. I mean a gym is a coaching business. But anyways, yeah, so I took the entire book.

[Audience Member 7]

I had a $99 community. The term was absolutely crazy. Developed the high ticket. It's been absolutely awesome. And four months ago, I did an annual conference. We had 1100 people in New York City. Sold out. Absolutely Amazing. Increased my conversion for all of my sales because of brand association, all that stuff. The issue is conference made no money whatsoever.

[Alex Hormozi]

So we're with the pitch from the event. You made no money.

[Audience Member 7]

I actually didn't have a pitch.

[Alex Hormozi]

Okay. Yeah.

[Audience Member 7]

So that's.

[Alex Hormozi]

Yeah.

[Audience Member 7]

So for them, for the next conference now it's like, what do I sell from stage? Because I saw Jim Con, the offer was amazing. Do I sell my high ticket? Do I sell the community? That's kind of where I'm stuck on.

[Alex Hormozi]

So you have your 8K thing, right? Yeah. What do they get for that?

[Audience Member 7]

It's an eight week transformational boot camp. They get every single system they need in their business to go from 0 to 40k a month.

[Alex Hormozi]

Okay. So either you can just sell that from stage, but most times if you're going to sell something from the stage, you want it to be higher, you want it to be 25k or higher. Is usually like 25.35k is kind of the sweet spot for most stage pitching. If you're like curious, like, why Was your thing 15? It's because this is the last week and we're just trying it out. It'll be 25 next week. 25 to 35K. How many days is it? Two days.

[Audience Member 7]

And there's a networking event. So it's kind of like a two and a half.

[Alex Hormozi]

I like end of day one, obviously, and then just make a soft toss, you know, like day two for it. And the big thing is that's cool with events is that you'll be able to have your customers there and so you can show social proof live, which is more compelling than anything. And so do a panel before you do the big pitch of like, look at realtor 1, 2, 3, 4, 5. Okay. And then they'll be like, holy cow, this guy's awesome. It's just more compelling. Cool. When I did gymlaunch, I did delivery events the same way and I never sold at our events. And they were just. I didn't even break even though I just lost money on them. Right. That was it. And so what I got from those events was just proof. And so for everyone, if you're not doing events for your business, I think just about any business can do events. Don't go to hotels, go to an event space. It's a thousand times cheaper. But also the main thing you can get out of it is marketing material. And so. But part of the reason that we were able to sell GemLaunch, so obviously KL was able to go in the ads but 80% of the winners that we had from our ads were just customer stories. And so we were able to extract as many customer stories in person from those events. And that is what more than paid for the events in terms of long tail. And so we had whatever three or four events a year that we held. We would collect as many testimonials as we could from those events, and then those became our entire ad creative strategy for the next 12 weeks until the next event. And so we got pretty, pretty good at it.

[Audience Member 7]

Social proof the brand. Absolutely amazing.

[Alex Hormozi]

The thing is, the event still has to be banger. Like, you always want to still do that, but there's always going to be people who are more qualified or want more. It's like you just want to make the offer for them.

[Audience Member 7]

Cool.

[Alex Hormozi]

Cool.