This Founder Takes Home $120K a Month — Transcript

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1. 0:00Alex Hormozi, I love you.
2. 0:02>> [laughter]
3. 0:03>> I love you, too, man. Let's rock.
4. 0:04>> Uh so, I'm I'm Abram. I
5. 0:07I have an easy, natural weight loss
6. 0:10program for women online. Uh we do $4.1
7. 0:14million a year right now, and we'd like
8. 0:17to be at $12 million a year.
9. 0:19>> Okay.
10. 0:20>> Uh
11. 0:21what is stopping me is consistently
12. 0:24filling the sales calendars with
13. 0:26qualified leads,
14. 0:27and if I don't solve this problem, then,
15. 0:30you know, my team can't support their
16. 0:31families, and not hitting my goals
17. 0:33bothers me to no end. Um so, how can I
18. 0:37get more qualified leads on my sales
19. 0:40reps' calendars consistently?
20. 0:41>> Yeah, so they can feed their kids and
21. 0:43not be homeless. What are we doing here?
22. 0:44Right. All right. So, uh primary way of
23. 0:47getting customers right now?
24. 0:49>> Uh it's uh basically 50/50 between Meta
25. 0:52ads and organic.
26. 0:54>> Okay. And is it IG is your
27. 0:57your organic?
28. 0:58>> Uh mostly uh it's Facebook and Instagram
29. 1:02for the organic.
30. 1:03>> it. It's Meta. All right. So, Meta
31. 1:04organic and then Meta ads for
32. 1:07uh
33. 1:08>> Correct.
34. 1:08>> Yeah, unpaid. Okay, got it. Um what's uh
35. 1:12what's price point and what's CAC?
36. 1:15>> My price point is $10,000 for a year
37. 1:19>> Okay.
38. 1:19>> or $5,000 for a downsell for a year.
39. 1:22>> Got it.
40. 1:23>> I'll pull up our cost to acquire a
41. 1:25customer right now.
42. 1:27It is
43. 1:30$1,193.
44. 1:33>> Okay.
45. 1:33>> Cost to acquire a customer.
46. 1:35>> And is that paid or blended?
47. 1:38>> Blended. I don't I don't know how to
48. 1:39separate them anymore ever since I've
49. 1:40been doing paid and organic.
50. 1:42>> Mm.
51. 1:43Okay.
52. 1:44>> It's like it's really hard because like
53. 1:45they'll they'll go through one path, and
54. 1:47then they end up out the other end, you
55. 1:49know.
56. 1:49>> I got you. So, 1,100 is blended?
57. 1:52>> 1,100 is blended, correct.
58. 1:54>> Okay, that's not bad.
59. 1:55Okay. Um
60. 1:57all right. And then, you said five and
61. 1:5810k, what's the average ticket?
62. 2:01>> The average ticket is
63. 2:06is 5,087.
64. 2:08>> Oh, so most people go for the five. So
65. 2:10you anchor at 10 and then most people
66. 2:11drop down to the five.
67. 2:12>> Correct. Yeah.
68. 2:13>> Okay. Got it.
69. 2:15All right. 50 cell room. Okay. Got it.
70. 2:18So you need to scale your your your
71. 2:19demand gen side. All right. So
72. 2:22>> [sighs]
73. 2:24>> Dude, we lost his tough man.
74. 2:26Um
75. 2:27Uh,
76. 2:28>> [sighs]
77. 2:28>> it's tough man.
78. 2:30The reason it's tough is there's no
79. 2:32revenue retention in the business.
80. 2:36Right? Like after you sell this thing,
81. 2:37I'm guessing they don't buy something
82. 2:38else, do they?
83. 2:40>> Uh, yeah, we sell them into our back end
84. 2:42the community for it. They typically
85. 2:43stay on for two to three more years.
86. 2:46>> Okay. What's the price point of that?
87. 2:48>> Uh, that one is like a fourth the price.
88. 2:50We We basically we took the money models
89. 2:52um approach where we Yeah, exactly. So
90. 2:55uh, after the first one we sell them for
91. 2:57basically half the price. So like 2,500
92. 3:00up front and then we they do a monthly
93. 3:01recurring and then they get to keep that
94. 3:03monthly recurring in for as long as they
95. 3:04stay in the program.
96. 3:05>> And what's the price point of the
97. 3:06monthly recurring?
98. 3:08>> Uh, it's anywhere from 50 to 150 dollars
99. 3:11a month.
100. 3:12>> it. Yeah, yeah. And so that's where the
101. 3:13churn is super low cuz they pay So what
102. 3:15percentage of people go into the 2,500?
103. 3:18>> Uh, 70% go into the 2,500. Yeah, but
104. 3:22that
105. 3:23>> dude.
106. 3:24>> Yeah, and they're actually thanking us
107. 3:26on the sales calls now because they're
108. 3:27like, "Oh my gosh, I cannot believe
109. 3:29you're letting me do it." Cuz we
110. 3:30increased the price for our program by a
111. 3:31thousand dollars every six months. We're
112. 3:33very public with it. So everyone that's
113. 3:35in the program already, they're like,
114. 3:36you know, we have people that joined for
115. 3:38three thousand dollars before and now
116. 3:40they're like, I get to pay, you know,
117. 3:42>> Yeah, 100 bucks monthly.
118. 3:43>> 1,500 plus, you know, 100 dollars a
119. 3:45month and they're like, "Oh my gosh,
120. 3:46this is the best thing ever."
121. 3:47>> Dude, I love it. I almost wrote a whole
122. 3:48chapter on it. I love it. Uh
123. 3:50>> [laughter]
124. 3:51>> Okay, cool. So we have to increase
125. 3:52demand. I mean, if that if these numbers
126. 3:55are true, which I'm assuming they are,
127. 3:56right? Um if you had a 3-month a 3-year
128. 4:00stick on 100 bucks a month,
129. 4:02uh you've got 10k on the back, right?
130. 4:05Plus the 2500, you got 12.5, plus the
131. 4:0857, right? So, you're you're at almost,
132. 4:11you know, 18,000 in LTV, right? And a
133. 4:13lot of that's margin.
134. 4:14>> Right.
135. 4:15>> Yeah. Yeah, a lot of huge part of it is
136. 4:17margin, yeah.
137. 4:18>> What's margin right now?
138. 4:20On four.
139. 4:22>> On
140. 4:24Oh, like what do what do we take home?
141. 4:26>> Yeah, what's your net?
142. 4:28>> Uh my net for uh crap, I'd have to pull
143. 4:30up the other ones, but um it anywhere
144. 4:33about 120,000 a month I take home for
145. 4:37my what I take home.
146. 4:38>> Oh, a month. Okay, got it. I was like,
147. 4:40what the hell? Okay, got it. So, you're
148. 4:41doing uh 1.4 on four.
149. 4:45>> Yeah. So, that's like the net net. Like
150. 4:47if we're just talking about the uh
151. 4:49net operating costs or things like that,
152. 4:51or you just mean like net that I take
153. 4:52home.
154. 4:53>> So, you got So, yeah. So, you're at
155. 4:55you're at like 30-ish percent net
156. 4:57margins, somewhere in there.
157. 4:58>> Yeah.
158. 4:58>> Okay, got it.
159. 5:01>> [sighs]
160. 5:01>> Okay.
161. 5:03So, what happens when you scale your
162. 5:05paid?
163. 5:06>> So, ever since Andromeda hit, it's been
164. 5:09way easier to have profitable ads. Like
165. 5:12it's so crazy because as soon as you put
166. 5:14something up, you spend like $30 and we
167. 5:16get a 5k painful like the next day.
168. 5:18Yeah. And then
169. 5:20a week later, it is just hemorrhaging
170. 5:23money. Like and it or the or the lead
171. 5:24quality just goes to [ __ ] like right
172. 5:26away and we have to shut it off. So,
173. 5:29um I'm basically just cranking through a
174. 5:31ton of
175. 5:33like things for
176. 5:35to feed the Andromeda engine.
177. 5:37And that works to a point, but I can
178. 5:39never seem to scale it up to wherever I
179. 5:41want to get. I've never found a I've not
180. 5:42found a true winner in like
181. 5:45I feel like a year now. They've all just
182. 5:47been really short cycles.
183. 5:49>> the game has changed.
184. 5:51And so what you need to build, so this
185. 5:52will be really this will be really good
186. 5:53for a lot of people, not just you.
187. 5:56So you obviously have like when you have
188. 5:57weight loss in a business like yours,
189. 5:59it's all demand, right? And so
190. 6:01um rather than me say, "Hey, let's make
191. 6:03more better content." I think that that
192. 6:05one seems obvious. Um I think what you
193. 6:08need to build is kind of what I was
194. 6:09talking about from the tech side, but
195. 6:11you need to build this you need to build
196. 6:13a self-licking ice cream cone within the
197. 6:14business that can basically make you an
198. 6:16affiliate army. So for example, like we
199. 6:19put out gosh, I'd say collectively
200. 6:21probably 500 pieces of creative a day.
201. 6:25And so you just aren't putting nearly
202. 6:26enough creative out, which means like if
203. 6:28that is the if that is the true
204. 6:30limitation of the business, which it is
205. 6:31right now. Like right now, the thing
206. 6:32that's limiting your business is your
207. 6:33creative. You need more creative.
208. 6:36And so that means we need to have a
209. 6:37process or a system that creates
210. 6:38creative. And so my
211. 6:41my curiosity
212. 6:43would be
213. 6:44is there a way that we can create a
214. 6:47cycle for your customers to make
215. 6:51reels and shorts about your stuff and
216. 6:55basically
217. 6:56keep their instead of paying $100 a
218. 6:58month
219. 6:59it's like you can pay $100 a month or
220. 7:01you can make me two pieces of content a
221. 7:03week or five pieces of content a week.
222. 7:06>> What does that content look like?
223. 7:09>> Them
224. 7:11you would look at all the
225. 7:13strongest hooks in weight loss. Tell
226. 7:16them what those hooks are. Let them use
227. 7:18those hooks and also make their own
228. 7:19because that's how you discover new
229. 7:20ones.
230. 7:22So what you need to do, so are you
231. 7:23familiar with TikTok Shop?
232. 7:25>> Yeah.
233. 7:25>> Okay.
234. 7:27You want to create your own TikTok Shop
235. 7:30affiliate system
236. 7:31fundamentally for people to create
237. 7:34creative to promote your thing.
238. 7:37Like this is what will take you from
239. 7:38four to not 12. Like this will take you
240. 7:40to 50.
241. 7:42Like this is the highest point of
242. 7:43leverage in the business for you.
243. 7:46And so answering the question like how
244. 7:47can I get 100 people to make me five
245. 7:49pieces of content a week?
246. 7:51So you get 500 pieces of creative. And
247. 7:54with Andromeda
248. 7:56the algorithm will read number one what
249. 7:58they're saying,
250. 7:59number two what they look like in the
251. 8:01room. And so it will match
252. 8:03because all Andromeda did which is why
253. 8:05the ROI is so high is they just took the
254. 8:07the idea of national ad campaigns is
255. 8:09like gone.
256. 8:10It's all sub-segments because they want
257. 8:12the
258. 8:14they want the process rather they want
259. 8:16the experience for a consumer to be feel
260. 8:20like the algorithm is so catered to
261. 8:21them.
262. 8:22Which means that advertisers can no
263. 8:23longer just be like
264. 8:25"Hey, buy my shit." Right? It's like you
265. 8:27have to be like, "Oh, you're just like
266. 8:28me who look like you and talk like me
267. 8:30and you're making this recommendation."
268. 8:31Now I'm more likely. So marketers love
269. 8:33it and hate it because it's
270. 8:35your experience is 100% what Andromeda
271. 8:37does. You get better ROAS and it burns
272. 8:39out in two days.
273. 8:40And so I just happen to come like the
274. 8:43biggest gift I ever got was I started as
275. 8:44a local business owner.
276. 8:45And so I had the same 100,000 people I
277. 8:48could advertise to. So I had to make
278. 8:50[ __ ] loads of creative before it was
279. 8:52cool. So that's why I I I I've I've
280. 8:54flexed this muscle a lot. And so
281. 8:56it it but your needs at your spend is
282. 8:59beyond
283. 9:01like you're you're going to need
284. 9:04I'll make your target 500 pieces a week.
285. 9:08>> 500 pieces a week from the my clients
286. 9:10just talking about whatever these hooks
287. 9:12are. So if
288. 9:13>> And you can do 50/50 static and
289. 9:16um
290. 9:17uh static and video.
291. 9:19>> Yeah, that's going to be my question
292. 9:20because the when I have
293. 9:23Andromeda, I have that's exactly what my
294. 9:25split is right now. It's like 50/50 text
295. 9:27and images and video. But
296. 9:31the messaging has to be 100% unique
297. 9:34between every single creative for it to
298. 9:35crank like that. And I I mean like
299. 9:37literally nothing is the same. Like the
300. 9:40Like the entire thing is All of them are
301. 9:42like 100% different. That's why they
302. 9:43crank so much. But So, if I have my
303. 9:45clients doing this and they're putting
304. 9:47out this five-piece of content, am I
305. 9:48telling them, "Hey, these are all the
306. 9:50best hooks. Everyone record these best
307. 9:51five hooks with my brand messaging?"
308. 9:54>> be fine. Yeah, they get to like they can
309. 9:56Like if you have different people saying
310. 9:57the same thing, that's totally fine.
311. 10:00>> Okay, that would still that would still
312. 10:01be okay. What about Do I need to worry
313. 10:03about like brand messaging inside of
314. 10:04like what they're saying or is it kind
315. 10:06of like
316. 10:07>> you can watch them.
317. 10:08>> Oh, no, I mean like like I want to sell
318. 10:10easy weight loss for women. Do I have to
319. 10:12make sure they say that specific thing?
320. 10:14You know, like or do I have to say like,
321. 10:16"Hey, I lowered my cortisol."
322. 10:18>> Do you know what I mean? If you can get
323. 10:18that past the ad scraper, if you get
324. 10:20easy weight loss for women working,
325. 10:23amazing. A lot of I mean, you're skating
326. 10:25on thin ice on that one.
327. 10:27>> Yeah. So,
328. 10:28>> Easy, fast weight loss.
329. 10:30>> [laughter]
330. 10:31>> Yeah.
331. 10:32>> The only thing else you need is free and
332. 10:34you'll be and you hit you'll hit the
333. 10:36Yeah.
334. 10:37>> Free, guaranteed.
335. 10:38>> Yeah. Fast, easy, free weight loss.
336. 10:41Uh that's what you need to do. You need
337. 10:42to build out the machine. Um and do you
338. 10:45already have um
339. 10:46AI automation set up so that you can get
340. 10:48100 or 200 uh statics a week just
341. 10:50cranking to you uh without you doing
342. 10:51anything?
343. 10:53>> Uh no, I write out all the copy um
344. 10:56every day.
345. 10:57>> No, dude. No, dude.
346. 10:59>> Yeah. That's And cuz I I've tried Yeah,
347. 11:01cuz I've done the
348. 11:02uh the AI ones I've done. But I guess
349. 11:05it's all testing cuz I don't know. Like
350. 11:06some of the ads I think suck ass and all
351. 11:08of a sudden I put them out and they
352. 11:10rock. So, like I don't know what's going
353. 11:12to be good. So, if I'm putting out
354. 11:14different like text and imaging things,
355. 11:16do you have like best practices that you
356. 11:18guys have seen work right now where if
357. 11:19you guys are Are you doing like five
358. 11:21different um
359. 11:23image or one image and like five
360. 11:24different copies and then you're doing
361. 11:27advantage creative for anything specific
362. 11:29that you guys are seeing?
363. 11:30>> Dude, we're just cranking so much
364. 11:31variety and then whenever we do have
365. 11:32winners, we add it to the winner the
366. 11:34winner sheet, and then that feeds the
367. 11:36AI.
368. 11:39>> Gotcha. Oh my gosh, why am I not doing
369. 11:42that? All right, I've been I took my
370. 11:43winning emails. You know I should Why am
371. 11:45I not taking my winning ads?
372. 11:47Like All right, so
373. 11:49makes a lot of sense. Good talk.
374. 11:51Awesome. All right.
375. 11:52>> [laughter]
376. 11:54>> Appreciate you, man.
377. 11:54>> I will definitely do this, yeah. Thank
378. 11:56you so much.
379. 11:56>> Yeah, you bet, dude. Rock and roll.
380. 11:58If you are a business owner and you're
381. 12:00not growing as fast as you'd like, I'd
382. 12:01like to give you a free gift. So, my
383. 12:03team and I put together the $100 million
384. 12:06scaling road map, which is basically 200
385. 12:07hours of us looking over all the
386. 12:09portfolio companies we've had and what
387. 12:11stages of growth they went through, and
388. 12:13more importantly, where they got stuck
389. 12:14and how they got past it. And so, we
390. 12:16broke it into these 10 stages, and we
391. 12:18made this little kind of quiz thing
392. 12:19where if you put in your business
393. 12:20information, it'll tell you where you're
394. 12:22at, and the most important part for you,
395. 12:24what to do for each of functions of the
396. 12:25business across product, marketing,
397. 12:26sales, customer success, recruiting, IT,
398. 12:28human resources, and finance. And so, no
399. 12:31matter what you're struggling with,
400. 12:32someone else has already struggled with
401. 12:34it and solved it. And so, I'd like to
402. 12:36give you this thing absolutely free. You
403. 12:37can go to acquisition.com/roadmap,
404. 12:39plug in your business information, and
405. 12:40if you want us to actually help you
406. 12:43deconstruct your business and you're
407. 12:44trying to scale, we'd love to help you
408. 12:46out. On the thank you page, you can just
409. 12:47book a call with my team, and we will
410. 12:50look at the business, see if we can
411. 12:51help, and if we can, we'll invite you
412. 12:52out to Vegas, and we'll do this in
413. 12:54person live.