The Mozi Hotline Is Open | Ep 933

Summary

Podcast Summary: The Game with Alex Hormozi
Episode: The Mozi Hotline Is Open | Ep 933
Release Date: August 8, 2025

Welcome to a detailed summary of Episode 933 of "The Game with Alex Hormozi." In this episode, Alex opens the first personal Hermozi hotline, engaging with entrepreneurs seeking advice on various business challenges. Below, you'll find a comprehensive breakdown of the key discussions, insights, and conclusions drawn from each caller.

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1. Introduction to the Hermozi Hotline

The episode kicks off with Alex Hormozi introducing the Hermozzi Hotline, a platform where entrepreneurs can seek real-time business advice. Alex expresses his preference for this interactive format over traditional video content, aiming to provide immediate and personalized guidance to callers.

Notable Quote:

• Alex Hormozi [00:00]: "We're live in our first personal Hermozi hotline."

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2. Caller 1: Candace Lambert – Green Ring Rental Business

Business Overview: Candace Lambert operates a unique business renting out green rings for single individuals to signify their availability and seeking status. Additionally, she manages a salon, barber shop, and an Airbnb, working six days a week.

Challenges:

• Educational Barrier: Struggling to educate the market about the concept of green rings, leading to customer hesitation.
• Low Sales Volume: Only 20 rings sold at $129 each.
• Resource Allocation: Managing multiple businesses with limited time and resources.

Alex's Advice:

• Focus & Prioritization: Alex emphasizes the importance of focusing on one business at a time to allocate resources effectively.
• Pricing Strategy: Suggests increasing the price point to ensure profitability and sustainability.
• Market Saturation: Recommends narrowing the target market, such as focusing on specific demographics or regions, to achieve better market penetration.
• Viral Marketing: Highlights the need for a viral coefficient where the product is inherently shareable to drive word-of-mouth growth.

Notable Quotes:

• Alex Hormozi [02:00]: "We'll try and figure out what you should do more than what I would do."
• Alex Hormozi [03:09]: "Selling a physical product that's a one-time purchase on $129 to me is very tough."
• Alex Hormozi [05:50]: "...get way, way more narrow on a tiny, tiny, tiny little puddle of a puddle of a puddle that I could put all my time and effort into."

Conclusion: Alex advises Candace to streamline her focus on the salon business, optimize pricing, and adopt a more concentrated marketing strategy to enhance her business's viability and scalability.

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3. Caller 2: Candace Lambert – Digital Marketing Business

Business Overview: Candace runs a digital marketing agency specializing in hosting, website management, and web design for service-based businesses. The agency generates approximately $3,500 monthly revenue, operating 20-30 hours a week while managing a team of three.

Challenges:

• Low Revenue per Client: Charging $150-$300 per month per client, leading to thin margins.
• Resource Management: High overhead with a small team, resulting in limited profitability.
• Customer Acquisition: Primarily relying on in-person networking, which is time-consuming and less scalable.

Alex's Advice:

• Increase Pricing: Raise service fees to at least $500 per month to improve profit margins.
• Outbound Marketing: Shift focus to one-on-one outreach through texts, DMs, emails, or phone calls to existing contacts and networks.
• Value Proposition: Offer initial free services to build trust and demonstrate value, which can lead to higher-paying clients.
• Narrow Focus: Concentrate efforts on a specific niche or local market to maximize resource effectiveness.

Notable Quotes:

• Alex Hormozi [08:01]: "So you're making $3,500 a month right now off of it."
• Alex Hormozi [10:07]: "What percentage are not local? They're all local."
• Alex Hormozi [11:46]: "Thing number one is that you probably need to charge more for what you're doing."

Conclusion: Alex recommends that Candace increases her pricing, leverages her existing network for outbound marketing, and focuses on securing higher-value clients to enhance the profitability and sustainability of her digital marketing business.

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4. Caller 3: Candace Lambert – Compass System for Youth Athletes

Business Overview: Candace offers "The Compass," a confidence, resilience, and emotional mastery system tailored for youth athletes. This system includes a physical journal and a gamified "maze model" designed to help young athletes manage their emotions and build confidence.

Challenges:

• Declining Revenue: Revenue has decreased from $30-40K to $10K monthly after hiring additional staff.
• Service Quality: New hires are not maintaining the same level of service, leading to reduced customer referrals.
• Business Balancing: Struggling to manage both brick-and-mortar operations and the digital side of the business effectively.

Alex's Advice:

• Reevaluate Hiring Strategy: Ensure that new hires meet the required standards to maintain service quality and customer satisfaction.
• Focus on Scalable Models: Shift focus towards enterprise clients, such as volleyball clubs, to create a sustainable and scalable revenue stream.
• Optimize Pricing and Time Management: Increase pricing and reduce personal time investment to free up resources for scaling the business effectively.

Notable Quotes:

• Alex Hormozi [14:09]: "Costs go up, revenue goes down. No bueno."
• Alex Hormozi [16:04]: "It's like Facebook's business model. Really good business. Really hard to do, right?"
• Alex Hormozi [18:50]: "You have the online is going to be significantly more scalable than the brick and mortar."

Conclusion: Alex advises Candace to refine her hiring practices, focus on scalable enterprise clients, and adjust her pricing strategy to restore and enhance revenue. Emphasizing the shift from hands-on management to strategic scaling is crucial for sustainable growth.

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5. Caller 4: Mike – Franchise and Software Business

Business Overview: Mike manages a franchise-based business encompassing three departments: franchising, media, and CRM software. With 191 locations across the U.S., Canada, and Australia, his business aims to reach 70-80 million in revenue by 2025 and go public within six to eight years.

Challenges:

• Lead Generation Dependency: Currently relies entirely on organic social media content (YouTube with 225,000 subscribers) for franchise leads.
• Scaling Issues: Needs to accelerate the rate of selling franchise locations to meet growth targets.
• Marketing Strategy: Uncertain whether to focus more on enhancing content or diversifying marketing channels.

Alex's Advice:

• Double Down on Strengths: Since Mike is more adept at content creation, Alex recommends intensifying content efforts to capitalize on existing strengths.
• Enhance Call-to-Actions (CTAs): Incorporate multiple CTAs within content to improve lead conversion rates.
• Expand Marketing Channels: While focusing on content, also explore additional acquisition channels like paid ads to diversify lead sources.
• Optimize Content Quality: Invest more time in pre-production to improve content quality, ensuring better performance and higher engagement.

Notable Quotes:

• Alex Hormozi [29:05]: "Either will work... If you just say I'm going to spin up outbound, you look like you have the resources to do it."
• Alex Hormozi [31:49]: "It's how do we make that one video... could you get it to perform better?"
• Alex Hormozi [32:14]: "I would put the CTA within every video there's five different ones."

Conclusion: Alex suggests that Mike intensify his content strategy by enhancing CTAs and improving content quality while simultaneously exploring additional marketing channels. This dual approach aims to increase lead generation speed and support the aggressive scaling goals of his franchise and software business.

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6. Episode Wrap-Up

In the concluding segment, Alex recaps the key advice provided to each caller, emphasizing the importance of focused strategies, effective pricing, and leveraging core strengths to overcome business challenges. He also hints at future episodes and initiatives, maintaining engagement with his audience.

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Final Remarks:

This episode of "The Game with Alex Hormozi" underscores the significance of strategic focus, pricing optimization, and leveraging existing strengths to overcome business hurdles. Through personalized advice to diverse entrepreneurs, Alex demonstrates his expertise in scaling businesses from various industries.

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Note: The promotional segment at the end of the transcript regarding Alex's upcoming book launch and event has been intentionally omitted from this summary as per the request to exclude advertisements and non-content sections.

Transcript

[Alex Hormozi]

The biggest belief breaker that I've had with content is that when I saw the guys who are the true, the best in the world, 20 million plus subscribers on YouTube and I asked them to kind of look at my stuff, they said, oh, well, send me your pre production notes. And I was like, what do you mean? I kind of just like have a couple of stories and I turn the camera on. They're like, yeah, well, that's why you don't have 21 subscribers. I was like, well, that. That tracks. What's going on, everyone? We're live in our first. First personal Hermozi hotline. Second ever, I guess. I did one with Sean Puri and he did a little Twitter post and said, if anybody want to ask questions, business wise, you can ask them. And I had a blast doing it. And I was like, I would much prefer to do this than make the. The good old fashioned red camera. Not that I don't love it, but we're going to see what we got. All right, caller one. Let's see here. Hello.

[Candace Lambert]

Hello.

[Alex Hormozi]

How are you?

[Candace Lambert]

I can't even believe I'm talking to you right now.

[Alex Hormozi]

I can't believe I'm talking to you.

[Candace Lambert]

This is Candace Lambert. Nice to meet you.

[Alex Hormozi]

Nice to meet you too, Candace. Tell me about the business. What's going on? What's the issue?

[Candace Lambert]

Okay, so I rented a ring for single people because I've been single, all alive, and the dating apps are just insufferable. So it's just a ring that's green that kind of shows that you're single and seeking. It has gotten some traction. Here's where I suck. It's a colossal task to educate everybody that needs to be educated about it. And that's what it is. Making people hesitate to buy it because they're not seeing it on anyone else. There's deliveries or anything like that. So they're kind of waiting. So I give a ton of product away just to get it out there. We're out there promoting it. We have a bigger cart. I do what I can, you know, in my free time, but like I said, I also have a salon, a barber shop, and an Airbnb, and I work there six days a week.

[Alex Hormozi]

Oh, how many business you got going on right now? Well, I mean, we'll. We'll try and figure out what you should do more than what I would do, but. All right, tell me, what's revenue of the ring?

[Candace Lambert]

No, not a lot. We've sold maybe less than 20 rings.

[Alex Hormozi]

Oh, 20 rings in total. Okay, got it. All right. What are you selling rings for?

[Candace Lambert]

It's 129.

[Alex Hormozi]

Okay, got it. 129. All right. So that's. Yeah, not a lot of dollars.

[Candace Lambert]

It's been really nice packaging and it has an authenticity card comes with each one and they're in.

[Alex Hormozi]

Okay, what's. So give me the. The salon. So what do you make it on the salon about?

[Candace Lambert]

Probably?

[Alex Hormozi]

And that's your net or revenue?

[Candace Lambert]

Revenue.

[Alex Hormozi]

Okay, got it. And you own the salon?

[Candace Lambert]

Yes.

[Alex Hormozi]

Okay, got it. Okay, and then what's your take on the. On the 100?

[Candace Lambert]

Yeah, so I did pretty good. I mean, I bring home probably 75 and I make about 25,000 on the Airbus.

[Alex Hormozi]

Okay, great. So then Airbnb is 25K. Okay, got it. So what do you want to have happen here? Because I'll tell you this, trying to change the entire social norm around single versus non singles. Tough. Like super tough. There's also not like a recurring revenue thing. So it's like I would want to educate the entire world on different way of single versus married only to sell them something one time is a very hard model.

[Candace Lambert]

Well, okay, so I did have plans and I partnered with a fine jewelry company for scaling. Literally, the company is the only jewelry line for singles. The first and only jewelry Flag for singles. So we would have like stackable singles that you could also add. You know, like we have collections. So with the flag product being the sticky band from Degree.

[Alex Hormozi]

Well, if this were Shark Tank, Candace, this is a tough one. So for me, this would be a pass. Basically, Candace is in one of these situations where she has this really big, you know, dream idea of this. I want to change the world of singles and dating. And then she has two other businesses that she has kind of going as well. So she has three enterprises she's pursuing. And she also doesn't have the resources to really do this. I wouldn't want to pursue three things like now. And I have a ton of resources. And so like, the reason that I harp on focus so hard is that it's just so hard to make anything work that you have to put all your resources into one thing if you want to make it bigger. The getting the single rings is like I have to change the entire perception of a population. And then if I were to do that, I would want to make sure that I had some way of consistently monetizing them for an extended period of time. Now, selling a physical product that's a one time purchase on $129 to me is very tough. So like even something That's a product like a drink or something like that. Well, it's consumable. I'd be inclined to think, okay, well, if we make sure the product's good enough and people will keep buying it again and again. So we're acquiring a customer once, but then we get customer for life here. It's purely transactional. And like, do people want to stack rings? I don't know. Do people want to see, say, and shout to the world that they're single publicly? I don't know. I mean, up to this point, for zillions of years, just not having a ring has been the demonstration of that. I would be focused on the business, that's the salon business, and say, okay, how do we take this to 4 million a year? Or how do we take this to a million dollars a year? And focused on that, that's what I would do. If you're like, what would Alex do in my situation? And I, I wouldn't think about the ring. Just to be very candid, you have three different businesses going on. You have super limited resources, limited time, limited money, and the ring especially is going to require a ton of. Of capital to really, to really win. And so the way to. If you really do want to make the ring win, the way to do it would be to dramatically decrease the scope. And so what I mean by that is that you would say, like, how do I win the green ring in a high school? And then how do I win in. In or college, whatever. And then how do I win in three colleges or five colleges? Right? You have to. You have to just dramatically narrow the scope so that the resources you have can get set saturation. Because the business model that you have is a good business. It's just incredibly hard to do. It's like Facebook's business model. Really good business. Really hard to do, right? That's why there's only one Facebook. I see where your passion's at with it. First off, I wouldn't do it, but if I were going to do it, I would do it this way, which is I would get way, way, way, way, way, way, way, way, way more narrow on a tiny, tiny, tiny little. A puddle of a puddle of a puddle that I could put all my time and effort into. And the key for you is that you have to have a viral coefficient, right? You have to have something that gets it shareable. Like, people have to want to share it because your dollars aren't going to go that far because you don't have that many. So you like it has to grow off word of mouth. It doesn't. You have to keep fixing until it grows up. Word about it's the only way going to unless you raise a ton of money. That's me being real rather than nice. Okay, well, I'm still rooting for you to do the salon because I think that you just, you can, you can much more easily just be like, okay, I'm going to buy back something, but that's another call for another day.

[Candace Lambert]

Thank you.

[Alex Hormozi]

Appreciate you, Candace. No, you're great. Thank you for being a support. All right, bye. Yeah, I, I, I want to be real with you guys. I, I will, I will always be taking the perspective of, like, if I were to invest in this business, what would I do? If Candace were really serious about the green ring idea that she has, she has to, it's going to take a ton of money and it's going to take a, and it has to have a huge amount of initial traction. And so I would be continually tweaking the product. Tweaking the product, tweaking the product. Now, right now, the ring itself is not really the product. Like, if she wants to build the app that makes more sense. These things go together. But just selling the green ring is very much marketing, and that's very hard to do. Word of mouth. Only sell a concept of marketing via word of mouth, like product. Because as soon as you're 2 degrees separated from the founder, the product has to do the selling more than anything else will. Right. And maybe you can make the argument that a story will, but again, it's like you have to have such a small pond where you can actually achieve saturation, where it actually becomes useful. This is Alex on the Hermozi hotline.

[Candace Lambert]

Yeah, thanks for taking the call.

[Alex Hormozi]

You bet. Tell me about the business. What's the problem?

[Candace Lambert]

I run a digital marketing business where we focus a lot on hosting, website management, and doing some web design.

[Alex Hormozi]

Okay.

[Candace Lambert]

And honestly, I don't know where to spend the most time to get people in. We run about 3,500 or so a month and I also have a full time job with three kids.

[Alex Hormozi]

Got it. So you're making 3,500amonth right now off of it. Okay, 3,500 bucks a month. Got it. How many hours are you spending on roughly?

[Candace Lambert]

20 to 30 hours a week.

[Alex Hormozi]

Okay, 23 hours a week. Got it. Can you handle more business right now?

[Candace Lambert]

Yes, I can actually bring on the team because I knew that I was being able to help.

[Alex Hormozi]

Okay. If you had to bring a team a month and you're at 30 $500 a month. You're underpriced. So that's like thing number one is that you probably need to charge more for what you're doing. How many clients do you have? A 3500 we run. Oh, dude. But wait, who. Who are you? Is this for businesses?

[Candace Lambert]

Yeah, it's for service based businesses.

[Alex Hormozi]

Are you running ads? Are you. They are just like managing the purchase?

[Candace Lambert]

Yes, we're just basically managing it for them so that they can focus on their stuff.

[Alex Hormozi]

So why do you need a team if it's so pass it.

[Candace Lambert]

Mostly because I don't want to handle the website design anymore. We bring on somebody for that per.

[Alex Hormozi]

Client basis, but they're paid 150 bucks. 100 and whatever. 200 somewhere in there. $175 a month?

[Candace Lambert]

Yeah, some range between anywhere between 150 and 300.

[Alex Hormozi]

Okay, so you got 20 clients paying somewhere. They were to 150 whatever. Plus a month. Right. And you're managing their. What is, what is managing the site actually entail?

[Candace Lambert]

So hosting backup security updates, making any changes I need to the sites.

[Alex Hormozi]

Okay. Doesn't sound like a ton unless you have a lot of people who are asking for a lot of stuff.

[Candace Lambert]

No, usually our cost per client basis is about 34 to $35.

[Alex Hormozi]

Okay, so when you said team, do you mean you have one guy who's doing this? So three guys make it like nothing.

[Candace Lambert]

No, honestly, I have no IDEA what the one.

[Alex Hormozi]

We're splitting $3,500 and you're running, you're running 80% gross margins on it. So there's only $700 left. He said there's three guys.

[Candace Lambert]

Yeah.

[Alex Hormozi]

So they're not making anything. My point. So we've got, we've got three teammates. Fine. Okay. There's a whole bunch of things that need to get fixed, but we'll, we'll get to that in a second. So how are you getting customers right now? Okay, when you say Facebook sometimes, what does that mean? Okay, cool. So if you're not the one doing the actual website stuff, what is the 20 to 30 hours a week you're spending on this business?

[Candace Lambert]

Trying to grow through networking.

[Alex Hormozi]

Okay. And that means like in person. Like, so I mean, that's, that's four hours a day, right? I mean, that's, that's real time. So what. So what are you doing every day? Okay. No, you're good. No, you're good. But you're good. You're good. Okay, I'm gonna help all Right. So we have to pick one of the four promotion methods. Okay. So you can reach out to friends one on one. So think text, dm, email, phone call, any of those. When I say friends, I mean anybody who's in your contact list, anybody who's a subscriber to yours on any platform, anybody who's ever emailed you in your entire life, that's in your Google or whatever Gmail, you know, whatever your email provider is that's ever emailed you, that is, that is the first list you make. You export all your contacts on your phone, all the people that you that are subscribed to all your social medias, all of the contacts you have on, on your email platforms, and then you message all of them with an option to, well, if you want, you can work for free for a period and then if they're happy with it, they can start panning. I mean, that would be the first thing we did. The next thing is that you need to raise the price by a ton. So I mean, for what you're doing, I would say like minimum, I charge 500 bucks a month. And right now you might be talking to business owners who are just not that big either, which means you just have to go after people a little bit. But I mean, if you just do that, if you did nothing else, like if you're spending 20 hours a week and you just spent four hours every day just messaging the people say like, hey, can I work for free? And then if I do a good job, pay me afterwards. At this rate, like, I think you'll probably do more than you are now. That's thing one, thing two. I mean, I can give you thing two. Do you want to do thing two or you want to do thing one? Just do thing one. It'll still make more.

[Candace Lambert]

Yeah, yeah.

[Alex Hormozi]

So thing two is that I, I want you to make the same, like make some content, but make the content in those communities. All right? And ideally, I think if you're like, you can go after local because there'll be a little bit more trust if you're down the road, et cetera. So look at the local small business groups on meta and whatnot. And I would just basically put valuable posts, I would put tear downs in there. Like, look at this website that we redesigned for free. Look at this website that we did. And I think people will just solicit you and anybody who interacts with it, you can reach out and offer them free stuff.

[Candace Lambert]

Yeah, sounds good.

[Alex Hormozi]

And then when they get on the phone, of course you can say hey, that's what I'll do for free. I do more stuff for money if you want. And then you. You can obviously upsell from there. That's it? That's all you got? Like, that's where all your attention should be going. One is we got to change the price from 150 to 500. And number two, you can give away a free thing up front into the 500. And number three, spend the 20 hours a week doing outbound one on one. I appreciate you, man. No, you bet. Congrats on the business. Thanks for taking a lead. Hello, Hormozi hotline. Gabby, what's up? How are you?

[Candace Lambert]

Good. How are you?

[Alex Hormozi]

Excellent. So tell me about the business. What's. What do you want to have happen to so happily?

[Candace Lambert]

Well, so I grew the business solo over the course of a year to a six figure business. Amazing. And I created. Thank you. I created so much demand, I could no longer handle it by myself. Awesome.

[Alex Hormozi]

So what do you sell?

[Candace Lambert]

So I sell what's called the compass. It is a confidence, resilience, and emotional mastery system for youth athletes.

[Alex Hormozi]

Okay.

[Candace Lambert]

Understand their emotions on the court to help them be confident. To help them.

[Alex Hormozi]

Is this a core course or it's a serve? Like how? Which. What's the delivery?

[Candace Lambert]

It's both. So it's a physical journal. Was designed to kind of meet kids where they are in a gamified setting. Okay. Journal will guide them through what I developed called the maze model.

[Alex Hormozi]

Okay.

[Candace Lambert]

So it's mindset analyze zero and execute reflection over the course of every season. So the challenge with our kids these days is that they are accustomed to instant gratification. They don't know what exists where we tell them they have to work for something. And then with social media, they're very insecure.

[Alex Hormozi]

Yeah, they're always like comparing.

[Candace Lambert]

We're trying to help them with that.

[Alex Hormozi]

Let's go business. What's revenue right now?

[Candace Lambert]

Revenue right now? I'm around 10k month over month. That went down from 30 to 40 when we hired people.

[Alex Hormozi]

Wait, revenue is top. Okay, when I'm saying revenue is, are you still doing 30 or 4,000amonth in total sales? Okay, and then Your profit is 10?

[Candace Lambert]

No, my. My revenue has dropped from 30 to 40 down to 10 after hiring people.

[Alex Hormozi]

Costs go up, revenue goes down. No bueno. Okay, got it. What did you stop doing when you hired these people?

[Candace Lambert]

I stopped doing all the services myself.

[Alex Hormozi]

Okay. And so as a result, word of mouth stopped because they're not as good.

[Candace Lambert]

They're not as good. They're new.

[Alex Hormozi]

Well, they're not as. Nick, we got to be able to speak quaintly, right? They're not as good. If they were good, then you. This wouldn't have happened. Okay, Right. So you have people who are delivering the services. As a result, they're not doing as well. And since they're not doing as well, you're not getting referrals. That summarize it.

[Candace Lambert]

Not getting referrals and not able to handle any demand in the business. So just the fact that for me as a founder, I need to be talking to customers, I need to be doing content, I need to be leading the team and organizing the team and putting together systems, which I can't do anymore because I have to.

[Alex Hormozi]

But before this, you were generating demand and doing three or four times the volume without them.

[Candace Lambert]

Yes.

[Alex Hormozi]

So what am I missing killing myself doing?

[Candace Lambert]

I was killing myself doing it.

[Alex Hormozi]

And now you're getting killed.

[Candace Lambert]

Yeah, yeah, I'm getting killed. Dollars wise. Yeah. I have a brick and mortar and I have a digital side. So the brick and mortar is very labor intensive. I coach volleyball. So hours upon hours of coaching, practice, planning, talking to the parents and making sure the parents are understanding where the kids are developing and where they're not. And all of that was just. I did it for a year by myself, and then it was just I ran myself into the ground. Like, I need people to help me do this.

[Alex Hormozi]

What are you charging per student?

[Candace Lambert]

We charge $1750 for our 12 week course, which includes four hours of training per week over the course of 12 weeks.

[Alex Hormozi]

Okay, so flex your box. Okay. And is that one on one?

[Candace Lambert]

It is groups, a small group setting. We cap our classes at 20. Right now I have. When I was doing 30 to 40amonth, I had like a half full classes. So 10, 10 girls.

[Alex Hormozi]

Is this in person?

[Candace Lambert]

In person.

[Alex Hormozi]

So people come to you in person for the four hours per week of sessions?

[Candace Lambert]

Correct. For the brick and mortar.

[Alex Hormozi]

Got it. Okay. Times 12 weeks. Okay, got it. And so they're paying, you know, just under two grand for. For 48 hours. Call it of work. That sound right? Okay, got it. And then it's one on. You said one on 10.

[Candace Lambert]

Yeah.

[Alex Hormozi]

Okay, so for one session. Right. If you just did one 14 hour session a week for 12 weeks, you could do $17,500 if you just did that. Okay. And that'd be over 12 weeks divided by three. So you'd be somewhere, wherever it is. 6ish, you know, thousand dollars a month. If you just did one of those per week. If you did five of those a week, so half of your day, then you'd be making $30,000 a month. And that's kind of, I'm guessing, where you were before this.

[Candace Lambert]

That's kind of where I was before this. We also have the digital side. So what I did when I got to the year, I was like, oh my gosh, the cost of acquisition in my body and labor is so high. What if I put all my attention into the digital side because I can scale faster, I can do more clients, it's not in person, so I can go wider and far. So we spent the last couple of months while I hired my employees, building out a digital system, a digital ecosystem where we are focusing on filling with journals. My enterprise client is volleyball clubs. So There are about 5,000 volleyball clubs across the nation and their average amount of players per club is around 200. And so I have a number of clubs buying McDonald and then we're trying to get them into the ecosystem and do a product there. So, like, can I replace my brick and mortar with the digital or can you run both at the same time? That's kind of where we are right now.

[Alex Hormozi]

Is this your whole business? This your primary thing that you do?

[Candace Lambert]

Yeah.

[Alex Hormozi]

Okay. I mean, you have a decision you have to make, which is what business do you want to. You want to own? I mean, obviously the online is going to be significantly more scalable than, than, than the, the brick and mortar. The difficulty you're going to have online is acquisition because right now when you're local, you're very spoiled. And I don't say that it's a slight. I just say, like, there's such embedded trust when you're down the street from somebody. Like, you don't need to have multiple indoctrination sequences. You know, huge brand, lots of content, you know, video sales letters that have to go out to convince people that's if you're selling, you know, straight to consumer, if you're selling to the enterprise client, then it's going to be more outreach, multiple touch points, et cetera. I would say that the more valuable business for sure is the can I get the enterprise, Can I get all these teams to buy a journal and then have a subscription as a team and then that you facilitate training the team fundamentally that they have to, they have mandated kind of curriculum for. They have to attend. So I kind of like study hall. It's. I think that model works in scales. The question that you have to deal with right now is the bridge, right, of how do I Go from where I'm at now to where I'm trying to go.

[Candace Lambert]

Yeah. Because I'm deep into the brick and mortar, investment wise.

[Alex Hormozi]

Yeah. Well, what do you mean, investment wise? You mean, like, you put money into the location?

[Candace Lambert]

Yeah, yeah, yeah.

[Alex Hormozi]

So besides the delivery, when you were making four times as much money, what were you. What were you doing for promotion?

[Candace Lambert]

Mostly Instagram. So. So I have a pretty decent Instagram following. And so I'm just telling. So here's the challenge right now. In youth athletics, mindset isn't a standard. Strength and conditioning is a standard skill. Training is a standard. Mindset is not what it needs to be. So I'm going in and educating and telling people that based on my experience as a former Division 1 volleyball player, you should be doing this. So as I educate, it brings in a. A ton of leads.

[Alex Hormozi]

Right.

[Candace Lambert]

So all my leads come from Instagram. I bring them into the studio.

[Alex Hormozi]

What percentage are not local?

[Candace Lambert]

They're all local.

[Alex Hormozi]

Interesting. Yeah. But on Instagram, that. It's local. It's very interesting. This is tough. So you have a business that's based on you, and then you quickly put other people in place who are not as good as you to do this curriculum, and in so doing killed your cash flow, which makes it difficult to do anything Right. So I would prefer we look at the calendar. If I transported my brain into your body and I had to take over the wheel today, I would be saying, okay, I did 40,000amonth when I was killing myself. I would like to do $20,000 a month, except I'll raise my price, because if you have more demand than you can handle, then price is a lever. So I'd raise my price and I'd cut my time in half. And then with the excess time, I would spend my excess time and excess cash, because now I don't have any other people to start developing out the digital thing. So basically, you have to put a cap on your time because you're purposely saying, I'm not going to take all the money that's on the table right now so that I can build this other thing. And so if you really wanted to take the real hypothetical extreme, you could cut three quarters of the time you were doing before, double your price, and make half the money. But you still have 75% of your time. And so right now, I think your pricing lever is the one that you're not using, because you said he had oversold demand. And so I think also the fact that you haven't recently been doing the delivery will also still give you artificial bump. If you say, hey, I'm coming back in. But only for select clients at a higher price point, you actually have a decent narrative to do that. Now, the enterprise play with the team signing on and them getting on a very small subscription for many of those people, many parents are accustomed to spending that kind of money. I think the whole mindset thing makes sense. All that, all that jazz is. But you still have to get there. Right? And so we have to buy time. We have to make you money. And so raising the price and cut and capping yourself at either 25% of the time you're right before or 50% can get you at least half to maybe even 100% of the revenue you were at beforehand. And I would have a very strong look internally of like, I know I have these people, but if you don't take care of the business, they're not going to have a job for a loan anyways. So it's like, we got to take care of the business. You got to put the oxygen mask on. We can breathe and buy some space, buy some padding. And then the enterprise starts. Starts kicking off. Then, of course, you can have the training for them. Also, I think that some of the best people you might take would be probably ex athletes or even some of the older people that are graduating from those teams and offer them internships of people who, like, really excelled at it. And then you'll be able to get some free labor or at least discounted labor that might be solid. Do we like that flame?

[Candace Lambert]

I like that flame.

[Alex Hormozi]

Okay, good. I love this play for us. Isaac, congratulations on the business.

[Candace Lambert]

Thank you.

[Alex Hormozi]

All right, well, have an awesome day and keep us posted.

[Candace Lambert]

I will.

[Alex Hormozi]

All right, you're on RAO hotline. What's going on?

[Candace Lambert]

Hey, how you doing? My name's Jonathan. I have martial arts schools and we have five rock and roll. And they do well. But my challenge is always in getting more people that want to be instructors and then training those people on how to sell.

[Alex Hormozi]

Okay.

[Candace Lambert]

And it just seems like it's like a niche within a niche within a niche. I'm wondering if maybe there's a better way to go about it.

[Alex Hormozi]

Really pointed question, which I love. I want to ask some questions about the premise, first off, which is you got. You've got. You've got these. Call them trainers, whatever, instructors. Why do they all need to learn how to sell?

[Candace Lambert]

Well, the model we run. Yeah. Run at a high profitability. Is that basically you have a guy that does it all.

[Alex Hormozi]

Okay.

[Candace Lambert]

Small Brick and mortar.

[Alex Hormozi]

Okay.

[Candace Lambert]

150 to 200 students at a rate average of about $300 a month. Great.

[Alex Hormozi]

Badass. It's great. Good morning.

[Candace Lambert]

You know, we run ads on Meta, we call leads, we sell trials over the phone. They come in, we do a tour orientation, invite them to enroll, and save money by enrolling on the first day. If it's a good fit. Yeah. And getting guys that are really good on the floor to be really good at sales. Sometimes it's a challenge.

[Alex Hormozi]

Yeah, Yeah. I mean, you have identified the, the difficulty of the model. So, you know, it's one of those. This is more of a feature, not a bug type setup. So it's one of these, like there's a lot of different businesses where like, okay, well, you know, selling cleaning is really easy. It's like finding people to clean is really hard. So it's kind of one of those that you got to pick. Like every business has shit, right? And this is the one that you've got. Now I'll tell you this, what's your turn right now?

[Candace Lambert]

I do know off top of my.

[Alex Hormozi]

Head, I'm guessing it's decent. Oh, it is. Okay. Okay, so what are you compensating?

[Candace Lambert]

Instructors, they get a percentage of gross revenue.

[Alex Hormozi]

Oh, Reviot bonuses. Okay. What's their OT or on target earnings? What do they need per year?

[Candace Lambert]

Depends on the location. Anywhere from 40 to almost 200.

[Alex Hormozi]

Oh, wow. It's a big range. Okay. Yeah, yeah, yeah. Big rage. Okay. So the entire issue you have is you to find someone local who, who knows martial arts, who can sell.

[Candace Lambert]

Right.

[Alex Hormozi]

Okay. So I guess the reverse question is, is it easier for you to teach somebody who has martial arts how to sell or easier to find somebody who can sell to teach martial arts?

[Candace Lambert]

There's the challenge I wrestle with all the time because, you know, people that.

[Alex Hormozi]

Are good at selling, they're not martial artists.

[Candace Lambert]

They're not martial artists. Or if they are, the problem is they take so darn long to get good. You know, like most of our instructors are at least second degree black belt. So we're looking at a five year training period.

[Alex Hormozi]

Yeah. So then it sounds like the reverse is the. Now that's if you require a second degree black belt to be the. Be the guy. Right. I would imagine that like for me teaching this sale, I don't think should take longer than like a day or two.

[Candace Lambert]

What do you mean?

[Alex Hormozi]

Like, this is not a hard sale. Like this out. If you're doing like, you're not selling, you know, intangible consulting services. For $250,000, you're selling a membership to a martial arts studio. So this should be like a six question script that you just have to tell them when do you raise your voice and when you shut up. And so my guess right now is that the deficiency that you have as an entrepreneur is that you are not good at teaching sales.

[Candace Lambert]

Well, the guys we have are really good. Is how do I recruit more of them?

[Alex Hormozi]

So do you just need to such a small. Okay, so then said differently, do you just need to. Able to find bl. So if we. Okay, so I'm taking, taking this argument. If we think that if you're good at teaching sales, let's just take that position, then it's not trying to find martial arts people who can sell. You just need to find martial arts people.

[Candace Lambert]

Yes.

[Alex Hormozi]

Okay, great. We're getting narrow on the issue. So how big is the, the city that you're in?

[Candace Lambert]

Greater Sacramento area? About 2 million.

[Alex Hormozi]

If you were like rural Kentucky, I'd be like, you know, that would be, I can see, see that might be a, you know, be an issue. But no, I mean, how many martial arts groups are there in Sacramento? Are there any students that you can promote? You've got 1500 students or you know, 300 times five or close to that. It's like there's not one who would just be willing to make a hundred thousand dollars a year and quit their job and do karate all day. I mean, I mean it's a slight, but I'm saying like, you know, they wouldn't do martial arts all day.

[Candace Lambert]

Yeah. Aggressive in recruiting people.

[Alex Hormozi]

Yeah, it's the constraint of the business. Anything that you're doing that's not recruiting. Recruiting is you not pursuing businesses growth. If that's the limit of the business, if that's the constraint, then every day I'm waking up and before, you know, before noon, I've reached out to a hundred people about whether they know somebody or they are the person who is a really good at martial arts that either lives here or is willing to move here. Like you can also offer something like a signing bonus for $5,000. Like there's, there's things you can do if you want to incentivize people. But I get the impression right now it's like, have you solicited the whole, thousand person plus base that you have? Number one, two, have you emailed your entire email list from historic? So I'm sure you have a bunch more leads that never came in. Running ads for a while. Ask them if they would like to be an instructor. Number three, ask them if they know anybody who would like to be instructor. Number four, I would go at, you know, like the Sacramento, you know, martial arts community and I would ask them. I would go to the tournaments and the meets and find people at the. Like, this is so solvable. What stops it from doing that?

[Candace Lambert]

Nothing.

[Alex Hormozi]

Okay, great. Well, we got narrow running because I think you had a narrative around like drilling how to find martial arts people at cell. It's like, okay, well are you bad at teaching sales? Like, no, I'm good at teaching sales. Okay, so we just have to find martial arts people. Okay, great. Let's go find some martial arts people. You bet. Congratulations on the business.

[Candace Lambert]

Yes, sir.

[Alex Hormozi]

Talk soon. Hello, caller number five. Four. What's going on? It's Alex. Mike. What's up man? How's it going?

[Candace Lambert]

Last month we did 1.1 million revenue across three different departments. So 50 of it comes to the franchise, 20 from the media side of things, and 30 from compliance CRM, which is like software.

[Alex Hormozi]

20 software, was it 30?

[Candace Lambert]

50% to the franchise, 20% from the media side of things, AND 30% from coax, which is the software.

[Alex Hormozi]

Okay.

[Candace Lambert]

And so we have 191 locations on the franchise side right now. U.S. canada, Australia, about 180 operations now.

[Alex Hormozi]

Okay, 180 open. Got it. Okay.

[Candace Lambert]

System probably around 70 to 80 million in 2025. Okay, so I came to the scaling workshop last year, you and you said focus on you economics. So Dr. Cash and I work with kind of five different ways to solve the offseason for the franchisees. Yeah. And the goal is a thousand locations and to go public in six to eight years.

[Alex Hormozi]

Okay.

[Candace Lambert]

Right now my constraint is that 100%, I guess my question is 100% of our franchise leads come from my organic social media content on YouTube and about 225,000 subs. So my question is, should I focus more and better on the content side or just start a second marketing channel or acquisition channel, data ads, outbound calls, etc. Just because we want to increase the speed at which we're now selling location. We really haven't been pushing it up until now.

[Alex Hormozi]

Well, I'll first say that this is a many ways up the mountain type problem. So I want to be clear that like either will work. So just like upfront. So that way you look back and think like, oh, I should have done the other way. Like both of them work. Like if you just say I'm going to spin up outbound, you looks like you have the resources to do it. So that will be fine. If you wanted to say like, you know, I'm going to double down on content and make more, better content, that will work too. Because it's not like you're, you know, it's not like you've tapped YouTube. You don't even in terms of the cut that you have. Are the people that are coming in existing long hair guys that are flipping or are they people who want you starting lawn care business?

[Candace Lambert]

The vast majority are converting about 70.

[Alex Hormozi]

No, I think it's better. I think it's better. That's good. Okay, so you want to grow faster. How many units a month are you selling right now?

[Candace Lambert]

We average 40 to 50 units every year basically since we started.

[Alex Hormozi]

So what, a week?

[Candace Lambert]

Approximately, yeah.

[Alex Hormozi]

Okay, so you sell one a week. And have you changed your cadence on content or what you make in the.

[Candace Lambert]

Past year and a half? We've basically done weekly and then shorts are more frequently across all platforms. But they're like turnaround shows like travel app. It's a full production team and when you like turn around the business, it's all home services.

[Alex Hormozi]

There's a lot of different, different place here. So it's like you could just run ads and just retarget all the people that are near existing audience. That would probably be the lowest lift. It's like what's going to be the thing that's going to get you to where you're trying to go the fastest? It would be that if we imagine your audience as a triangle, you basically have persisted at making money by letting people kind of float to the top of that, that little peak. And then some of these people convert. Right. And then you have a huge amount of people underneath that are just kind of consuming free stuff. Now you can either move the line down and convert a higher percentage of the audience, which you would do via ads, or we extend the size of the pyramid overall so that the percentage of people who convert then becomes a larger slice. Both of them work. And so then the question is, okay, which do you have more skills that you can do in a shorter time period? So given your existing resources, I would.

[Candace Lambert]

Say I'm better at the content than figuring out paid ads.

[Alex Hormozi]

Okay.

[Candace Lambert]

Right now.

[Alex Hormozi]

Well, then I would say if you haven't really changed much about your paid ad strategy in the last 18. Sorry, excuse me, your, your content strategy last 18 months, that's where I've doubled down on. And I wouldn't double down on it. I'd be like, how do I 5x down on it. You know what I mean? Like so how many pieces are you putting out a week right now?

[Candace Lambert]

One long form. A week on YouTube is kind of the show. Yeah. Every day is shorts.

[Alex Hormozi]

Yeah. And you're only doing that on YouTube, Facebook, Instagram, and that's for shorts.

[Candace Lambert]

They said they get a hundred thousand dollars on those platforms. YouTube is where everyone says they hear about me.

[Alex Hormozi]

So I'll give you a little tiny little tactic that, that we've seen work. Well is one is. Is your CTA just in the description.

[Candace Lambert]

Yeah, we really don't do much CTA. Maybe sometimes one over third on the videos.

[Alex Hormozi]

Yeah.

[Candace Lambert]

But really not much.

[Alex Hormozi]

Much CTA is okay. So thing number one is I would put the CTA within every video there's five different ones. So you can put CTA in the description. CTA 30% mark of the video. You run your own kind of internal ad. The next is your actual profile. I would put it there. The fourth would be pinned comment on every video. And then number five would be YouTube community posts. Are you using those?

[Candace Lambert]

Yeah. Right now daily. About. Daily. Yeah.

[Alex Hormozi]

The, the community posts.

[Candace Lambert]

Correct. I'm just looking to keep. That's probably where I'm lacking. Yeah, I've kind of used the strategy like everything free but trying to be too promotional but.

[Alex Hormozi]

Well you could. So it's a, it's a great point. So I kind of see these as kind of persistent. It's like a. It's like an email sign off. If you give away stuff for free in exchange for an email, I still see that as free. I don't see that it's like a bad thing.

[Candace Lambert]

Okay. Yeah, we do that and I have about 50,000 that we can, you know.

[Alex Hormozi]

Okay. Are you emailing Rayleigh right now?

[Candace Lambert]

Two newsletters and then on Friday when we release the show, we send out basically a summary of that.

[Alex Hormozi]

Do any of those three emails per week have any call to actions in them?

[Candace Lambert]

Sometimes yes. I've been moving away from it actually to get. Just focusing on like the open rate.

[Alex Hormozi]

But I don't think you having a CTA is going to affect the open. This is how I delineate this because I think your instincts are good. It's just an execution thing. So I. So like for example, are you on Mosy Minute by any chance? My email? Yeah. So like I don't, I don't think that those emails are super right now. I think it's like here's a tactic that you can use today to make more money into this. This by the Way you can go check out our thing, which is I only have one line that's a cta and then the entire rest of the email is your stuff you can use. I think that use. I mean, I use that strategy for a reason because I like it. And it's not, it's just like when someone is ready, they can raise their hand and I make it easy and quick for them to do it. When someone is not ready, they just can skip past it. No big deal. There's two ways that I've seen work really well. One is the way that I do. The other way is basically the, the ultra ps, A super signature, if you will, where you underneath of the email have four different, you know, things that someone can do. It's like, hey, if you want more free stuff, go here. If you wanted this, go here. And if you wanted this, go here. I tend to prefer fewer calls to action that are more direct, but that's just me. But also just have one signature. This is PS, here's my CTA, right? So I think number one, I would be emailing with CTAs. Number two, I would embed in those five places. Again, I don't think it hurts if the biggest podcast in the world can have eight minute long ad reads. You can put a 30 minute, 30 second thing saying, hey, by the way, if you don't know, I own franchises and I sell these things and so if you want that, you can go here, otherwise enjoy the show. Like that to me is not, I don't think people are like, screw this guy, you know what I mean? Those are the two of like moving the line down in terms of converting our percentage. The other is still basically, I'll bet you that you have to spend more time than you currently are in pre production for the content to grow. Like, I don't think it's, oh, let's go from one video a week to five videos a week. It's how do we make that one video? Like if you had to spend five times the time on that video, could you get it to perform better? And I, I mean being real, like the biggest belief breaker that I've had with content is that when I saw the guys who are the true, the best in the world, 20 million plus subscribers on YouTube and I asked them to kind of look at my stuff, they said, oh well, send me your pre production notes. And I was like, what do you mean? And they were like the pre production notes. And I was like, I kind of just like have a couple stories and I Turn the camera on. They're like, yeah, well, that's why you don't have 21 subscribers. I was like, well, that. That tracks. And so right now you're putting all this effort into the production of the show, but I would put a ton into like, here's where Huge Leverages is the selection of the people that you're going to go see. Like, how are they on camera? Huge. Right? That's why they do casting for all these shows. Prepping them ahead of time so that it's like tighter, it's faster, it's better. And then looking at the packaging, packaging and headline for that stuff. Looking at outliers, see YouTube model outliers. Make sure that the, the hook of the video is going to match the headline and the thumbnails, all that stuff.

[Candace Lambert]

Quick question on that. Double click on it. Because I do see the constraint of the content as they are casting the amount of people that apply to the show. Would you use my cta? Yeah, sure. Towards that or towards the actual.

[Alex Hormozi]

Not more. Just both. Just both hand? Yep. All right, Mike, appreciate you, man.

[Candace Lambert]

Thank you, sir.

[Alex Hormozi]

Put the hop and a Rosie hotline. So if you guys enjoyed that, let me know and I'll do it again. I enjoy, like, I could do these all day. This is like the most fun stuff. You can see how the, like the level of the business, the change in terms of how we're thinking about it. Like in the beginning we're kind of like double checking the idea of like, does this is validate the idea of the business. The second we went through was web hosting. It's like, okay, well he fundamentally was mispriced and he wasn't promoting enough. Okay, great, we fixed that one. And then we had Compass. So for her, she had hired too quickly, also was mispriced. So we had to raise her price, get her back in at maybe a quarter to half the time to free up time and cash flow. She could pursue the better opportunity, which is the enterprise. And then we obviously had Mike just now. We just need to increase demand, right? And so for him it's like we need to do more better on the stuff that he's already doing. And the better side is also the conversion aspect. So it's like, boom, everyday business only we hit martial arts. So supply constraints. So it's okay if you have one point of leverage in the business. So like Mike needs to just make more components content. He just needs to go recruit like crazy. She needs to go and get people back on at a higher price. So that she can then book in the rest of the other two. I went over already. That's this week's Hermozy hotline. This is so much more fun. Rock and roll. The rumors are true. I'm launching my $100 million money models book. It's finally coming out. Six years in the making. My God, this took forever. But I've got something for you. I want to invite you to the entrepreneur event of the season, which is the launch of the book. Just. Just to give you some context, last time I launched the book, I spent over a million bucks on the launch itself. This time, I'm spending way, way more. And I've got a secret project that I've been working on for four years that I've been saving that every single person who shows UP Live Saturday, August 16, is going to get absolutely free. Now, if you're like, well, what is it? Well, I can't tell you what it is yet. Twice a secret. But it's better than an NFT and it's less than a bitcoin, and every single person who shows up live gets one. One absolutely free. And so if that sounds at all interesting, and you want to be at the book launch and you want the free thing, and the event itself is going to be bananas. Click the link register and I'll see you there.