92% of His Leads Come From One Faucet — Transcript

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1. 0:00Uh my name is Joe Stress uh with Squeaky
2. 0:02Clean and Dry. We do cleaning and
3. 0:03restoration. Um mainly residential at
4. 0:05the moment, which is going to be part of
5. 0:07my question. Um we currently do 1.9
6. 0:09million in revenue across two locations.
7. 0:11Um want to be at a $100 million exit. No
8. 0:13timeline on that. As long as it takes to
9. 0:15get there. Um our current constraint, I
10. 0:18believe, is a lead gen and ideal avatar
11. 0:21problem. So currently a majority of our
12. 0:23leads come from Google LSA. Um about 92%
13. 0:26that data is not accurate. We know we
14. 0:28need to get a new CRM. Um, so far as
15. 0:30data, but um, with that being said, it
16. 0:33comes down to if we need a second
17. 0:35acquisition channel and who to market
18. 0:36to. Currently, LTGP to CAC is lower on
19. 0:40the residential side than commercial. We
20. 0:42don't have a ton of data on commercial,
21. 0:43but CAC is the same. LTV is obviously,
22. 0:46you know, much higher um, recurring
23. 0:48revenue with property managers and just
24. 0:50bigger restoration jobs with mold,
25. 0:51water, and fire.
26. 0:52>> And they're all and those are coming
27. 0:53through LSA as well, the commercial
28. 0:54jobs.
29. 0:55>> Correct. Are you running a different
30. 0:56advertising campaign for those or
31. 0:58they're just coming through?
32. 0:59>> We can't really control who comes
33. 1:00through that funnel because we just rank
34. 1:02at the top if whether a homeowner or a
35. 1:04property manager searches us or our
36. 1:06services on Google.
37. 1:07>> Okay. So, what stops you from doing more
38. 1:09ads?
39. 1:10>> So, currently we are essentially anytime
40. 1:12uh LSA gets close to max budget, we're
41. 1:15just increasing it, which is increasing
42. 1:17leads, but not at the rate that's
43. 1:18actually going to move the needle the
44. 1:20way we want it.
45. 1:21>> Okay. For your local market. Now, what
46. 1:24how how many customers can you take
47. 1:26before location caps?
48. 1:29>> It's a great question. Like per week,
49. 1:31cuz we do so cleaning and restoration.
50. 1:33So, I know what you're going to say,
51. 1:35focus. Um, we actually bought an exist,
52. 1:38right? Chocolate and yoga, right? They
53. 1:39go together.
54. 1:40>> So, about a third of our business comes
55. 1:41from cleaning. We do um between two
56. 1:44roots, uh, three to four appointments on
57. 1:47each route per day. Um, each day is
58. 1:50about $1,200 per per route.
59. 1:52>> Yeah. Um restoration we can handle about
60. 1:55a job or two a day. Um each of those
61. 1:57jobs basically caps at $3,500.
62. 2:00>> And this is just like flood flooding
63. 2:02type stuff restoration.
64. 2:02>> Yeah. Bas fire damage.
65. 2:05>> Oh, fire. Okay.
66. 2:05>> Yep. Mold remediation.
67. 2:07>> Got it. Okay. Yep.
68. 2:08>> So that's two. Is there a third business
69. 2:10missing here?
70. 2:10>> No, just two. Okay. Thank god. Okay. Um
71. 2:15>> so so the two locations they both do
72. 2:18this buy model or you just have two
73. 2:20different services. Okay. Got it. All
74. 2:22right. And so what's the capacity of the
75. 2:24facilities or the locations?
76. 2:27>> So I mean we see people in our market um
77. 2:30you know the the bigger national chains.
78. 2:32They usually are around 3.5 to 5 million
79. 2:35before they have other locations.
80. 2:36>> What's primary channel for them?
81. 2:38>> Uh TPAs. So we do a lot of insurance
82. 2:41work on the water and the fire side. So
83. 2:43they work with third party
84. 2:44administrators through insurance. Claim
85. 2:45goes through insurance company pass
86. 2:47>> and that's on the restoration side not
87. 2:48on the squeaky cleaning side. Correct.
88. 2:51>> Okay. [laughter]
89. 2:52>> Um
90. 2:55what's LTV to CAC on both of those?
91. 2:57>> So for residential again,
92. 2:59>> no, no, not residential like
93. 3:01>> on the cleaning side versus the uh
94. 3:03restoration side.
95. 3:05>> So again, data is not super accurate.
96. 3:08From what we're able to get from the
97. 3:10data we do have, it's 6.1 to one on the
98. 3:13cleaning, 6.8 to one on the restoration.
99. 3:17>> About the same. Um, easier to
100. 3:21I would imagine it'd be way easier to
101. 3:22get cleaning customers than restoration
102. 3:25customers.
103. 3:26>> 100%.
104. 3:26>> Okay. What percentage of the business is
105. 3:29restoration versus cleaning?
106. 3:30>> Oneird revenue is cleaning, 2/3 is
107. 3:32restoration.
108. 3:34>> Did you start both at the same time?
109. 3:35>> Yeah. When we bought the business, it
110. 3:37was
111. 3:37>> Oh, it was like that.
112. 3:38>> It was like that.
113. 3:38>> So, you're inheriting
114. 3:40>> correct
115. 3:40>> step siblings. Got it. Okay. Um Okay.
116. 3:45Do you want to run both?
117. 3:48>> Did you buy it? So you bought it?
118. 3:49>> We did about four years ago.
119. 3:51>> Are you paid? Are you is the debt
120. 3:53service done and all that stuff?
121. 3:54>> Done.
122. 3:54>> Okay. So you own it outright. There's no
123. 3:55issues there.
124. 3:56>> Correct.
125. 3:56>> Okay. And it's still 2/3 one third.
126. 3:58>> Correct.
127. 3:59>> So the another kind of caveat to that
128. 4:02with commercial
129. 4:04>> um for that matter.
130. 4:05>> So messy. Keep going. Yeah. Yeah.
131. 4:06>> Well, it's just cleaning gets our foot
132. 4:08in the door.
133. 4:08>> Yeah. So, we can offer our cleaning
134. 4:10services for commercial spot treatment,
135. 4:13um, cleaning their area rugs in a larger
136. 4:15facility, and then if something happens,
137. 4:18we're their go-to guy.
138. 4:19>> Just like by chance, if something gets
139. 4:21destroyed while you happen to be clean,
140. 4:22>> we usually try like for [laughter]
141. 4:28[laughter]
142. 4:29um so for the commercial side, usually
143. 4:32we we try to put a contract together.
144. 4:34Um, I see usually some property managers
145. 4:36kick back on that. Um, but if we can, we
146. 4:38put a contract in place that if anything
147. 4:40happens, mold, water, fire, wild would
148. 4:42not like in contract period, we're here
149. 4:44to help.
150. 4:45>> Yeah, this is so weird. Um, okay.
151. 4:48[laughter]
152. 4:50It's a weird business. Um, you're like,
153. 4:53if by any chance someone has, you know,
154. 4:55food poisoning, we're here, we also do
155. 4:57like resuscitation or whatever. It's um,
156. 5:04>> how are you getting your leads on
157. 5:05restoration?
158. 5:06>> Same way. LSA.
159. 5:08>> Okay. And there's not really much
160. 5:10recurring there.
161. 5:11>> Hopefully not.
162. 5:12>> Yeah. Right. Yeah. Um you can always
163. 5:14mess something up on cleaning. You ever
164. 5:16know? Um Okay.
165. 5:19[sighs]
166. 5:25So if we think about this, so this is a
167. 5:28$100 million leads problem, right? Which
168. 5:30is which of the
169. 5:32lead generation methods are you going to
170. 5:34pick? So, you're profitable, I'm
171. 5:35assuming, uh, and you're just trying to
172. 5:37do more and you are maxing out your, you
173. 5:40know, local search stuff and you just
174. 5:42need more. Right. Exactly. Now, this is
175. 5:45relatively common, too, that um, local
176. 5:48search is super profitable, but like
177. 5:49there's only so many people searching,
178. 5:50there's only so much inbound intent, and
179. 5:52after that, you basically have to go to
180. 5:53interruption based marketing. So, I kind
181. 5:57of need you to choose your own
182. 5:58adventure. And I think, tell me if I'm
183. 6:00wrong here, it seems like you're at a
184. 6:01point of relative stability in the
185. 6:03business.
186. 6:03>> Correct. Okay, so you're at a point
187. 6:05where you kind of need to make a bet.
188. 6:07Uh, and so let's just walk through the
189. 6:10bet together of which of these is the
190. 6:12lowest bet for you. All of these are the
191. 6:14right bet for the right person. We just
192. 6:15need to figure out the right ones for
193. 6:16you. Okay, so bet one is that you go all
194. 6:19in on content and have, you know,
195. 6:21dancing men in beards, uh, cleaning
196. 6:23squeaky squeaky clean floors and then
197. 6:26slipping and then restoring it. Um,
198. 6:29[laughter]
199. 6:30oops, I'm bucket, you know, uh,
200. 6:32flooding. So, so that's that's option
201. 6:34one. Okay. Uh, option two is you run
202. 6:39kind of interrupt metabased ads. Uh,
203. 6:41because whenever you go from intent to
204. 6:43interruption, the ocean opens up to you
205. 6:45because no one only a very small
206. 6:47percentage of people wake up and say,
207. 6:48you know what, I need to go get a
208. 6:49cleaner day. Just about everyone else
209. 6:51just keeps living their life and then
210. 6:52gets interrupted and says, oh, maybe I
211. 6:53will consider a cleaner because of the
212. 6:54ad. Right? So, option two is we can run
213. 6:57interruption based ads. Probably meta
214. 6:59would be the first place that I would
215. 7:00look. The third option is we can do
216. 7:04basically a channel partner strategy. So
217. 7:06affiliates and so of and the thing is
218. 7:09like you have two businesses to feed
219. 7:10which I hate side note but um because
220. 7:14it's like okay that's a totally
221. 7:15it's going to be a different game for
222. 7:16both of them. Um, if you think that the
223. 7:18foot in the door is easier with
224. 7:19cleaning, I would agree with you. Um, I
225. 7:22would put all my front-end focus on the
226. 7:23cleaning most likely and then have a
227. 7:26cross-ell motion between cleaning and
228. 7:28restoration, which you kind of have. But
229. 7:30my focus from a lead gen perspective
230. 7:31would be cleaning because it's so much
231. 7:32easier to get those customers.
232. 7:34Whereas, I think restoration will
233. 7:35definitely have far more inbound intent.
234. 7:37People don't wake up and say, you know
235. 7:38what, I do need to restore my my
236. 7:40basement today cuz it's flooded. Like
237. 7:41that's that
238. 7:44they know. No one just decides to
239. 7:46because of an ad, right? And so, um,
240. 7:49which of those three feels like more up
241. 7:51your alley?
242. 7:52>> So, I love the sales side. I love going
243. 7:56out and meeting people,
244. 7:58>> um, trying to acquire referral partners,
245. 8:00whether that's plumbers, property
246. 8:01managers that are actually going to use
247. 8:03us. Um, which was kind of my question
248. 8:04about switching more to a commercial
249. 8:07ideal avatar.
250. 8:09>> Um, and then also anytime I'm doing
251. 8:11that, I'm always preaching restoration.
252. 8:13I rarely even talk about cleaning um
253. 8:15just because again it's you know higher
254. 8:17margins. Yeah. Um so
255. 8:19>> but like you're you're going in and say
256. 8:22like let's say here we've got a bunch of
257. 8:24properties, right?
258. 8:25>> And so you'd say hey
259. 8:28>> if something happens hit me up. That's
260. 8:30much harder to do than like why don't we
261. 8:32just start cleaning and then that stuff
262. 8:35comes later cuz I feel like you need to
263. 8:36like draw blood. You know what I mean?
264. 8:37Like you need to you need to get a
265. 8:38dollar across the line,
266. 8:39>> right? Um because obviously there's big
267. 8:42door knocking teams which you could do
268. 8:43if you want to do residential commercial
269. 8:44be a little tougher from a door
270. 8:45knockocking perspective because there's
271. 8:46gatekeepers. Um but I think if you are
272. 8:48and if you have like more sales aptitude
273. 8:50if you want to go after property
274. 8:51managers in order to target commercial
275. 8:54customers I think that makes sense.
276. 8:56>> Basically what I what I would love to
277. 8:58give you a line of permission on that
278. 8:59you can store if you want to um is
279. 9:02you're going to have to make some
280. 9:03material change right now. That might
281. 9:05seem contrary to what I was saying about
282. 9:06refreshing the bricks, but you've
283. 9:07reached kind of a local maximum of
284. 9:09you're spending as much as you possibly
285. 9:10can on the search words that you're
286. 9:12aware of.
287. 9:13>> Um, it does feel low from a revenue
288. 9:16perspective because if each location's
289. 9:18at 900k and that split between
290. 9:21restoration and cleaning, I find it hard
291. 9:23to believe that $300,000
292. 9:27in a local market is the cap for
293. 9:29cleaning search,
294. 9:30>> right?
295. 9:30>> That sounds unlikely.
296. 9:31>> So, would it make more sense to focus on
297. 9:33brand? So when people see us, multiple
298. 9:36touch points. So
299. 9:36>> who's doing your search ads?
300. 9:38>> Uh my partner.
301. 9:40>> Okay. I think there where we at? I think
302. 9:42there's I think you can probably bid on
303. 9:44more keywords than you probably are
304. 9:45right now. [snorts]
305. 9:46>> So he's he's referring we do LSA.
306. 9:48>> Okay.
307. 9:49>> So that's that's the majority. We spend
308. 9:51right now our budget's about 10k a week.
309. 9:53>> Okay.
310. 9:56That's a lot given wait that's across
311. 9:57both locations for all
312. 9:59>> we've had increased revenue since
313. 10:01increasing that but 1.9 was last year.
314. 10:05>> Okay.
315. 10:05>> So right now we're at about a million
316. 10:07this year.
317. 10:08>> Okay. So what stops you from like you
318. 10:09just can't spend more than you are.
319. 10:11>> Yeah. I mean every time we hit the
320. 10:13budget for the week you know we're
321. 10:15coming into our busier season maybe we
322. 10:16get to 12 and then we just won't start
323. 10:19won't keep reaching that.
324. 10:23>> Do you know where I'm coming from
325. 10:24though? Like it it it's like you're in
326. 10:26How big's the market you're in?
327. 10:28>> Big.
328. 10:29>> Yeah. Like I just I I have a hard time
329. 10:31believing you're like $300,000 like we
330. 10:33capped it, you know?
331. 10:34>> Um for this whole platform be the case.
332. 10:37>> What?
333. 10:38>> That's I would love for that not to be
334. 10:39the case. I
335. 10:40>> just want to do more.
336. 10:41>> Yeah. Yeah. No, I don't I don't think it
337. 10:42is. Um so I think probably having a
338. 10:45keyword strategy would be the next kind
339. 10:47of
340. 10:48>> big thing because that like you already
341. 10:50have an inbound call set up I'm
342. 10:52assuming.
343. 10:53>> Yes. Yes.
344. 10:54>> Okay. That would probably be the easiest
345. 10:56dial to move because on keyword like
346. 11:00search stuff, you can do 100 grand a
347. 11:01month, no problem, and spend. Yeah.
348. 11:03>> And that could probably take you to the
349. 11:05levels that you're looking for.
350. 11:06>> So, I was trying to exhaust like is
351. 11:08there anything that's closer to what
352. 11:09you're currently doing? I wasn't getting
353. 11:11it earlier, so I was like, okay, we got
354. 11:12to pick out something new, right?
355. 11:14>> But, um, if you're not doing any like
356. 11:17>> search keywords,
357. 11:18>> yeah,
358. 11:18>> like there's a lot there. That would
359. 11:20probably be my first thing to do. quote
360. 11:23semi more of technically it's new but
361. 11:25yeah go
362. 11:26>> so you think include PPC with LSA even
363. 11:29though it's like several like
364. 11:32>> yeah you like you need to there's
365. 11:34there's no there's no way on earth that
366. 11:38you have cap like you just said like the
367. 11:40the people in your market are doing way
368. 11:42more than you right and there's no way
369. 11:44that you've even come close to the cap
370. 11:46on that right
371. 11:46>> and just there's no way
372. 11:49>> and so we just need to spend more across
373. 11:51more kind of flows of traffic.
374. 11:53>> Okay.
375. 11:54>> So, stay on Google, just more off
376. 11:56Google.
377. 11:57>> That would be my first like my my shest
378. 11:59first bet.
379. 12:00>> Yeah.
380. 12:00>> Beyond that, you're going to have to try
381. 12:01one of the call it net new strategies,
382. 12:04which would either be finding centers of
383. 12:05influence, finding those, you know, the
384. 12:07the property managers and then doing
385. 12:09deals with them. And it's going to be a
386. 12:10slower role, but obviously it's more
387. 12:12recurring and there's higher higher
388. 12:13value. From a selling perspective,
389. 12:15commercial's
390. 12:17>> recurring is what matters more than
391. 12:19commercial versus residential. Yeah. Um,
392. 12:22but yeah, I would I would hit that easy
393. 12:23button before I would try the new thing.
394. 12:25Is that track?
395. 12:27>> Cool.
396. 12:27>> Okay. Yeah. So, we had to like
397. 12:30>> No, you're good.
398. 12:30>> Go through two two locations, two
399. 12:32different businesses, two different LTVs
400. 12:34to get there. But that's that's what I
401. 12:35would do.
402. 12:35>> If you're not getting as many leads as
403. 12:37you want and your business is demand
404. 12:38constrained, [music] meaning you could
405. 12:40service more customers than you
406. 12:41currently have, then this is for you.
407. 12:43So, marketing is changing [music] and I
408. 12:45think ACQ tends to be on the bleeding
409. 12:46edge of this stuff. We certainly spend
410. 12:48the money uh to do it, but we also build
411. 12:50custom software and we pay amazing
412. 12:51vendors and very expensive people to
413. 12:53figure out the system that we have right
414. 12:54now. And I want to share it with you
415. 12:55kind of open kimono style. If you're not
416. 12:57getting as many leads as you want, boy,
417. 12:59do I have the thing for you. Click
418. 13:00below, book call, and uh hopefully I'll
419. 13:02see you in Vegas.