WEBVTT 1 00:00:00.000 --> 00:00:02.960 If we can't clearly state our goal, we certainly won't hit it, right? 2 00:00:02.960 --> 00:00:04.480 You're going to hit it by accident, for sure. 3 00:00:06.640 --> 00:00:09.120 So I'm wondering, yesterday when we looked at the van, 4 00:00:09.120 --> 00:00:13.840 can the business model itself be a detractor? 5 00:00:13.840 --> 00:00:18.080 Like, I'm trying to think of how big can we grow this in the current model 6 00:00:18.080 --> 00:00:23.360 before we have to look at SaaS or products or people become, 7 00:00:23.360 --> 00:00:25.840 obviously, a big issue in this type of business. 8 00:00:25.840 --> 00:00:29.600 So how big can this go in this type of model? 9 00:00:29.680 --> 00:00:33.280 Yeah, I think it can, I mean, it can't, it's very unlikely 10 00:00:33.280 --> 00:00:35.920 it becomes a billion dollar a year sales business. 11 00:00:36.720 --> 00:00:40.960 The biggest problem with it, so the two big problems of that business are revenue retention, 12 00:00:40.960 --> 00:00:46.080 number one, and number two, depending on the model, if you have like coaches, 13 00:00:46.880 --> 00:00:49.120 because coaching doesn't scale. I mean, you can get to whatever, 14 00:00:49.120 --> 00:00:53.760 20, 30 million a year, but it kind of like, it becomes very difficult, typically after that, because 15 00:00:53.840 --> 00:01:00.320 getting somebody to be as good as you, this is actually what I made my whole podcast on this one. 16 00:01:00.320 --> 00:01:06.640 So like, so if we scale, let's just like, one-on-one businesses as a, 17 00:01:06.640 --> 00:01:13.200 as a most rudimentary version of this, you can then go down to one-on-four, one-on-eight, 18 00:01:13.200 --> 00:01:17.040 one-on, you know, one-to-infinity, right? So you scale that way, basically more and more 19 00:01:17.040 --> 00:01:23.040 fractionalized access to you, or your knowledge, whatever. This way, we have other people, 20 00:01:23.760 --> 00:01:28.720 other people, all right, more other people, where you still have one-on-one, but it's other people 21 00:01:28.720 --> 00:01:34.240 who are doing this. And so here, you templatize fractional, like, break apart the pieces 22 00:01:34.240 --> 00:01:38.080 into constituent parts, and then you train people on the, on the smaller pieces, so they can 23 00:01:38.080 --> 00:01:43.040 replicate in theory. In practice, I think what ends up happening is that, let's say I have a 24 00:01:43.040 --> 00:01:48.400 glass of milk, if I say, hey, we're going to go to one-on-four, one-on-eight, I pour that 25 00:01:48.400 --> 00:01:52.560 glass of milk into a shot glass, and I say, do you still want it? Now, if the milk's amazing, 26 00:01:52.560 --> 00:01:56.800 they're still going to take the shot glass. The alternative here is right at that glass of milk, 27 00:01:56.800 --> 00:02:01.040 and I have an equal size glass of milk, but I pour a little bit of milk in there, and then I 28 00:02:01.040 --> 00:02:04.800 just pour a lot of water in. And I said, you want this really diluted glass of milk, but it's 29 00:02:04.800 --> 00:02:10.320 the same amount as what you had before. And so I found that I think more businesses do a better 30 00:02:10.400 --> 00:02:15.840 shot going this way, then going this way. Now, the third path is what I think is the best 31 00:02:15.840 --> 00:02:20.800 version of this. And so if you think about knowledge businesses, there's tons of massive knowledge 32 00:02:20.800 --> 00:02:26.240 businesses. So, or it's a young, McKinsey, Bane, all started by people, put their name on the building, 33 00:02:26.240 --> 00:02:30.400 right? Accounting firms, law firms, consulting, all of those fundamentally had the same thing. 34 00:02:30.400 --> 00:02:33.600 There was a guy who was really smart and really good at some stuff, and was able to get people 35 00:02:33.680 --> 00:02:42.560 to give them money. The differences that these models are predicated on basically a career path, 36 00:02:42.560 --> 00:02:46.480 so they are supply constrained. And so the problem with most coaching businesses is that like, 37 00:02:46.480 --> 00:02:52.960 hey, you have a pulse, and in seven days, I'm going to get you to give you a roster of clients, 38 00:02:52.960 --> 00:02:58.560 so I can keep selling them. But the problem is that if you can teach somebody in seven days, 39 00:02:59.200 --> 00:03:03.680 how to teach somebody else, either you didn't teach them fully what you do, 40 00:03:05.520 --> 00:03:11.200 or what you do is so simple that it's not valuable. More often than not, it's the first thing, 41 00:03:11.200 --> 00:03:15.520 which is like, I taught you 10% of what I know, but I'm still going to charge more or less the same 42 00:03:15.520 --> 00:03:20.800 price either way, and then that's what creates this turn factory. And so the reason all of those 43 00:03:20.800 --> 00:03:24.480 companies have our supply constrained is that finding really intelligent people, 44 00:03:25.360 --> 00:03:31.200 and then they have a career path where it will take them 10 years to get to a partner, 45 00:03:31.200 --> 00:03:34.080 or whatever, managing direct, you know, status, and they start as analysts, 46 00:03:34.080 --> 00:03:37.360 and they become senior analysts, and they become VPs, and they become principals, 47 00:03:37.360 --> 00:03:40.800 and like, they work up their, work up the ladder, but they have huge earning potential, 48 00:03:40.800 --> 00:03:44.480 so somebody who is intelligent and hardworking and could actually do a job as good or better 49 00:03:44.480 --> 00:03:50.240 than you, doesn't want to work as a coach. So there are people like, Neil's not here for this one. 50 00:03:50.880 --> 00:03:55.040 Like, there are people who are very, like, you guys might be my team, like, they're very 51 00:03:55.040 --> 00:04:00.480 intelligent people, but they don't want to be, they're not coaches, right? And there are very 52 00:04:00.480 --> 00:04:07.280 silent experts for these particular things. And so this is actually many to one. So instead of one 53 00:04:07.280 --> 00:04:13.360 on one, it's many people who are experts for one customer. And so I see these as the three kind 54 00:04:13.360 --> 00:04:18.640 of delivery models that evolve over time, pros and cons. This one just doesn't scale as quickly, 55 00:04:18.640 --> 00:04:22.160 but then it stops because churn becomes too big. This one is much slower because it's 56 00:04:22.160 --> 00:04:24.960 supply constrained. But if you get really smart people, you can build a really big firm, 57 00:04:24.960 --> 00:04:30.320 which is evidenced by all the massive firms. This one, you have models like Tony Robbins, 58 00:04:30.320 --> 00:04:35.440 who, Tony Robbins, even if you're honest, you know, there's 10,000 other people watching, 59 00:04:35.440 --> 00:04:45.280 it's still valuable to zoom back into, to your question. I would probably be thinking of a, 60 00:04:46.080 --> 00:04:51.120 is the goal to sell? The goal is for the company to be around after I die. Okay. But I don't want to 61 00:04:51.120 --> 00:04:57.040 sell it. Well, the, wait, but you do want to sell it? I mean, I don't have the immediate 62 00:04:57.040 --> 00:05:02.400 story to sell it. You want to be enduring. I got it. So then the only thing that I'm solving for 63 00:05:02.400 --> 00:05:08.560 is revenue retention. That's really it. It's just revenue retention. And so obviously the hair 64 00:05:08.560 --> 00:05:12.640 solution we were talking about earlier, like if there were products that became the core business, 65 00:05:12.640 --> 00:05:16.800 then that becomes a very interesting model. The problem with that for gym launch specifically is 66 00:05:16.800 --> 00:05:23.200 that people were able, like gyms, like gyms who use our process sell their services for so much more 67 00:05:23.200 --> 00:05:28.640 than they make on product. And so that was the issue. And so it was just like always a bolt on. 68 00:05:28.640 --> 00:05:32.160 And so if they got distracted, they would just keep selling services, which I didn't make anything 69 00:05:32.160 --> 00:05:38.400 on. With the hair business, they make so much more on hair than they do on their court, 70 00:05:38.480 --> 00:05:42.720 cut in color, whatever, like small services, that there's, they immediately just start switching 71 00:05:42.720 --> 00:05:46.720 to selling hair. And so it becomes the core economic engine of the business. And that's what 72 00:05:46.720 --> 00:05:52.080 creates the revenue retention for them, but not as much for supplements, for example. And so for 73 00:05:52.080 --> 00:05:56.320 your business, it's either figuring out is there a hair that they can sell that they won't stop 74 00:05:56.320 --> 00:06:00.720 selling, which means it has to be the core business, which I feel like is tough because almost all 75 00:06:00.720 --> 00:06:05.200 your people are practitioners given what you just said. Or I have to give some sort of tool 76 00:06:05.200 --> 00:06:08.560 that they all have to use on a regular basis, which would be SaaS or some sort of hardware that 77 00:06:08.560 --> 00:06:12.800 helps them make better assessments that then they can charge more whatever they'll. So it almost 78 00:06:12.800 --> 00:06:17.040 becomes like build the Kindle, but get them on prime, that I think. Oh, that's 100% of the model. 79 00:06:17.040 --> 00:06:22.480 Yeah. Yeah. And so like gymowners.com is what gym launch is going to become or are already in the 80 00:06:22.480 --> 00:06:27.760 process of transitioning into. And that's, that's in my opinion, the only way to transition those 81 00:06:27.760 --> 00:06:33.680 things into one, like it's not, we don't do it to build enterprise value. We do it to retain 82 00:06:33.760 --> 00:06:39.120 customers, which then creates enterprise value. Cool. Thanks, man. Yeah. And it's also really hard. 83 00:06:41.760 --> 00:06:45.280 Yeah. So I had the, I've got a motorcycle YouTube channel. Cool. 84 00:06:46.720 --> 00:06:52.560 2.3 million subscribers. Top line is 3.7. Sweet. Most of my money comes from ad revenue. 85 00:06:52.560 --> 00:06:58.080 Interesting. Okay. We sell a couple hundred thousand dollars comes from products. I'm just 86 00:06:58.080 --> 00:07:00.880 wanting to know, well, I feel like I'm leaving something on the table, something big. Are you 87 00:07:00.880 --> 00:07:04.960 doing a lot of sponsorships in addition to ad revenue? Like it's not just YouTube ad revenue. 88 00:07:04.960 --> 00:07:10.640 It's most of its YouTube ad revenue. We just started ramping up sponsorship. That's amazing. 89 00:07:10.640 --> 00:07:16.720 That's crazy. What's your, what are your RPMs? 30. Interesting. Then you get a ton of, you just 90 00:07:16.720 --> 00:07:22.000 get a crazy one of views. What, how many views do you get a month? 10 to 15 million long form. 91 00:07:22.000 --> 00:07:30.000 Something doesn't add up there. The all the millivit gets much, gets pretty good. I see our RPMs. 92 00:07:30.000 --> 00:07:34.160 Well, yeah, but like I'm just doing the math there. So if it's like 10 million views a month, 93 00:07:35.600 --> 00:07:43.040 time, so that's mill, so that's 10,000 times 30. I just know that's right. It's long form. 94 00:07:43.040 --> 00:07:46.080 Long form. Oh, got it. Okay. That makes sense. Got it. Got it. Got it. Got it. Okay. Cool. So 95 00:07:47.440 --> 00:07:52.880 super cool. That's great. So that's the main ad revenue. What are the, what are the people on your 96 00:07:52.880 --> 00:07:57.680 channel selling? What are the advertisers who advertise on your channel sell to your customers? 97 00:07:57.680 --> 00:08:06.880 I don't know. Okay. So literally, today, in five seconds, make a community post and say, 98 00:08:06.880 --> 00:08:13.920 hey, what are the ads that you see on my channel? Comment below. And you will get, because fundamentally, 99 00:08:13.920 --> 00:08:16.560 the people who are advertising on your channel are once we're getting the highest return. 100 00:08:16.560 --> 00:08:19.440 There are the ones who are paying you three and a half million dollars a year, not YouTube. 101 00:08:19.440 --> 00:08:22.640 Right. And so it's like, if it's worth three and a half million to them, then it's got to be 102 00:08:22.720 --> 00:08:25.520 probably, sorry, if they're willing to pay me three and a half, they're probably making at least 103 00:08:25.520 --> 00:08:30.480 10, probably 20 off of that. Now, you would be able to get even more than that, because they trust 104 00:08:30.480 --> 00:08:36.720 you rather than just some random slice. And so then I would look at the product mix of what 105 00:08:36.720 --> 00:08:41.760 things are being sold. And I look at which of these ones is one that either you could go directly 106 00:08:41.760 --> 00:08:45.360 to them and say, hey, I know you're advertising on my channel. Why don't we, let me figure a little 107 00:08:45.360 --> 00:08:52.480 deal out here. So, so you've got, you can have products that you own. You can have sponsorships. 108 00:08:52.880 --> 00:08:56.480 Or you can run affiliate, which is similar to these, but just kind of different in terms of the 109 00:08:56.480 --> 00:09:03.680 characteristics. So, um, oh shoot, and then partnerships. So, if somebody has like a really 110 00:09:03.680 --> 00:09:08.720 expensive thing that's very hard to do, like let's say somebody's, you know, got, they've figured 111 00:09:08.720 --> 00:09:13.360 out it build mini motorcycles or something, whatever. It's like, I might say like, how can, 112 00:09:13.360 --> 00:09:18.560 how can we partner on this so that I can push you traffic and promote and endorse and whatever. 113 00:09:18.640 --> 00:09:22.720 And then you have some element of cash flow, but a huge, you know, a huge chunk of equity of 114 00:09:22.720 --> 00:09:26.480 that business. Basically, you would pitch them, this is how I position it. I would say, 115 00:09:27.600 --> 00:09:32.640 and you've got some cash too. So, I would, the magic here is putting money and brand 116 00:09:32.640 --> 00:09:36.640 behind something. So, it's like, you have three people in your, in your marketing department. 117 00:09:36.640 --> 00:09:41.120 I am the marketing department of a business that's 20 times bigger than yours. And so, I'm 118 00:09:41.120 --> 00:09:45.120 going to bring my entire marketing department. It's like a reverse aqua hire. I'm like letting 119 00:09:45.120 --> 00:09:51.120 you aqua hire me, but I'll put some cash in the deal too. And let's split this or whatever, 120 00:09:51.120 --> 00:09:55.440 and we can go to whatever this next level is. So, that would be like, this would be maybe the 121 00:09:55.440 --> 00:10:01.360 most complex, but the biggest bet for you that you could get like crazy, crazy returns. 122 00:10:01.360 --> 00:10:05.200 These things are all, I would say, smaller bets. Like, if you're not smelling sponsorships, 123 00:10:05.200 --> 00:10:09.840 you probably should just from a media company. So, it's like, do you want to optimize for how 124 00:10:09.840 --> 00:10:14.080 much profit you make? Because you could just become, if you're just motorcycle media, then you just 125 00:10:14.080 --> 00:10:18.880 sell ad space. So, not only do you get ad revenue, you just also sell ad space. And I'm guessing you 126 00:10:18.880 --> 00:10:23.520 could probably do, probably double the revenue that you have right now, maybe more, just by selling 127 00:10:23.520 --> 00:10:28.080 ad space. And that would just all drop the bottom line. That would be it. But the first step of 128 00:10:28.080 --> 00:10:31.760 still getting who are all the people advertising is a great first, like, that's my lead to list 129 00:10:32.400 --> 00:10:35.520 of hitting those people up. And the nice thing is it's like, really warm reach outs. You're like, 130 00:10:35.520 --> 00:10:42.400 you already advertise on my channel. So, let's make this official, right? The affiliates is like, 131 00:10:42.400 --> 00:10:45.920 if they're not willing to trust you, you can get a percentage of the revenue that you send. 132 00:10:45.920 --> 00:10:49.600 I'm not as big of a fan. I'd rather you do sponsorships. But if you need to, like, prove it out 133 00:10:49.600 --> 00:10:54.880 early or something, you can do that. And then, this last category is just like, if you were to develop 134 00:10:54.880 --> 00:11:00.240 a product, what would you sell? If that's not your space, then I would rather you just find, 135 00:11:00.240 --> 00:11:04.240 what's the thing that makes the most money on my channel? And then how do I make it do with them 136 00:11:04.240 --> 00:11:10.080 that makes sense? That's probably what I would do. Because, like, I don't want to go build school. 137 00:11:10.080 --> 00:11:14.960 I was like, I'll just bring a bunch of money and then buy it. Like, it just made more sense. 138 00:11:15.920 --> 00:11:19.120 But I'm not going to start another software company. That's a huge distraction for me. 139 00:11:20.320 --> 00:11:22.960 But I have all these people who want to start a business and I should put them somewhere. 140 00:11:25.840 --> 00:11:26.560 How you doing, Aaron? 141 00:11:26.560 --> 00:11:26.880 Good, sir. 142 00:11:27.760 --> 00:11:33.120 So, I just want to go through my main funnel or just using the theory constraints. 143 00:11:33.120 --> 00:11:41.280 So, I do organic traffic and I have my CTA which captures 46,000 people. This is for this 144 00:11:41.280 --> 00:11:47.520 last quarter, 46,000 people engage with that CTA and it kicks them into an AI conversation. 145 00:11:47.520 --> 00:11:48.720 This is physical therapy, right? 146 00:11:48.720 --> 00:11:50.480 Yeah, this is chronic pain head neck injury. 147 00:11:50.480 --> 00:11:51.520 Yeah, just for everybody. 148 00:11:51.520 --> 00:11:54.640 And it's a membership course $99 a month. 149 00:11:54.640 --> 00:11:54.960 Okay. 150 00:11:54.960 --> 00:11:55.200 Okay. 151 00:11:56.000 --> 00:12:00.960 So, the 46,000 people, they do the CTA, they go into that automation. 152 00:12:01.760 --> 00:12:07.760 50% of them engage with the automation and 50% do nothing of that 50% 153 00:12:08.880 --> 00:12:11.440 3% make it to the bottom of the conversation. 154 00:12:11.440 --> 00:12:11.680 Okay. 155 00:12:13.200 --> 00:12:17.040 And of that 3%, 17% sign up. 156 00:12:17.680 --> 00:12:18.000 Okay. 157 00:12:19.040 --> 00:12:25.120 And of that 17% about 40% of them cancelled during the free trial. So, 60% of them paid. 158 00:12:25.120 --> 00:12:25.440 Sure. 159 00:12:25.440 --> 00:12:26.240 70% free trial. 160 00:12:26.240 --> 00:12:27.680 And this is all automated, right? 161 00:12:27.680 --> 00:12:28.880 I pay someone like. 162 00:12:28.880 --> 00:12:29.280 Sure. 163 00:12:29.280 --> 00:12:30.320 It's not you. 164 00:12:30.720 --> 00:12:32.800 How many sales is that translating into per day? 165 00:12:34.160 --> 00:12:39.040 Per day, it's about 25 a week. 166 00:12:39.040 --> 00:12:39.760 25 a week. 167 00:12:39.760 --> 00:12:40.800 25 a week, yeah. 168 00:12:40.800 --> 00:12:41.200 Yeah. 169 00:12:41.200 --> 00:12:44.000 You just immediately make so much more money if you just got on the phone and sold them 170 00:12:44.000 --> 00:12:45.040 something for three grand for a year. 171 00:12:46.880 --> 00:12:47.360 Yeah. 172 00:12:47.360 --> 00:12:48.320 I told you that yesterday too. 173 00:12:50.160 --> 00:12:53.760 So, okay, if, if keeping that membership. 174 00:12:53.760 --> 00:12:56.400 I made a whole podcast about that this morning. 175 00:12:56.400 --> 00:12:57.200 Right. 176 00:12:57.200 --> 00:12:58.400 Just to freeze the value. 177 00:12:58.400 --> 00:12:59.200 Which is about you. 178 00:12:59.200 --> 00:13:00.000 I got an album. 179 00:13:00.000 --> 00:13:02.960 Yeah, which is like you're trying to make something scalable rather than trying to make it valuable. 180 00:13:03.600 --> 00:13:04.480 Make it valuable first. 181 00:13:06.320 --> 00:13:09.680 And the thing is is like when you make something really valuable, 182 00:13:10.240 --> 00:13:14.160 the premium price that you can attach with it gives you the resources to then make it scalable. 183 00:13:15.040 --> 00:13:16.960 When you try to make something scalable before you make it valuable, 184 00:13:16.960 --> 00:13:18.000 you just keep running into these issues. 185 00:13:18.000 --> 00:13:18.960 You were known what's the buy my thing. 186 00:13:18.960 --> 00:13:20.240 But I got it all automated. 187 00:13:20.240 --> 00:13:21.440 It's like, yeah, no one cares. 188 00:13:21.440 --> 00:13:21.920 You know what I mean? 189 00:13:21.920 --> 00:13:23.280 I'm not saying it, but I'm saying it in general. 190 00:13:23.280 --> 00:13:23.440 Yeah. 191 00:13:24.160 --> 00:13:28.160 I'm just saying like you will be able to probably five extra business if you just get on the, 192 00:13:28.160 --> 00:13:31.200 like once people do that three percent level, I just have a book of call. 193 00:13:31.920 --> 00:13:32.800 Tosh one of our experts. 194 00:13:33.680 --> 00:13:35.040 If you do that, you'll make more money. 195 00:13:35.040 --> 00:13:36.160 That's the, that's the thing. 196 00:13:37.200 --> 00:13:40.480 I have a D&D publishing business, making dodges and dragons bookle. 197 00:13:40.480 --> 00:13:44.800 And I've spent a ton of time doing the theory of constraints to the product development. 198 00:13:44.800 --> 00:13:45.040 Sure. 199 00:13:45.040 --> 00:13:47.680 Where I have a background in like IT DevOps. 200 00:13:47.680 --> 00:13:49.360 So I've been optimizing that. 201 00:13:49.360 --> 00:13:53.440 And I've been realizing that I've been neglecting the rest of the funnel 202 00:13:53.440 --> 00:13:55.120 for like whole businesses. 203 00:13:55.120 --> 00:13:55.920 Do you sell an Amazon? 204 00:13:55.920 --> 00:13:56.480 Do you sell Shopify? 205 00:13:56.480 --> 00:13:56.960 What do you sell? 206 00:13:56.960 --> 00:13:58.960 Primarily, I do it right now through like Kickstarter. 207 00:13:59.760 --> 00:14:01.360 So I want you crowdfunding campaign. 208 00:14:01.360 --> 00:14:02.960 People give you a bunch of money to build this product. 209 00:14:02.960 --> 00:14:04.000 You then build that product. 210 00:14:04.000 --> 00:14:06.640 So you have a publishing business basically? 211 00:14:06.640 --> 00:14:07.040 Yes. 212 00:14:07.040 --> 00:14:08.000 Okay, got it. 213 00:14:08.000 --> 00:14:08.480 Yes. 214 00:14:08.480 --> 00:14:10.080 And so do you have a pen name? 215 00:14:10.800 --> 00:14:11.840 So I don't have a pen name? 216 00:14:12.720 --> 00:14:13.600 No, it's all under mine. 217 00:14:14.480 --> 00:14:16.400 Oh, but so you're an author? 218 00:14:16.400 --> 00:14:16.560 Yes. 219 00:14:17.440 --> 00:14:18.480 Okay, cool. 220 00:14:18.480 --> 00:14:19.920 Yeah, so I've made two books. 221 00:14:19.920 --> 00:14:20.720 I'm working on my third. 222 00:14:20.720 --> 00:14:22.240 I got a handful of other supplements. 223 00:14:22.240 --> 00:14:22.640 It's me. 224 00:14:22.640 --> 00:14:23.120 Okay. 225 00:14:23.200 --> 00:14:27.600 And so I've done, I don't know, maybe like 30,000 in Facebook ads. 226 00:14:27.600 --> 00:14:28.160 Okay. 227 00:14:28.160 --> 00:14:30.160 Miscellaneous other advertising methods, 228 00:14:30.160 --> 00:14:32.640 but that's not my skill set and not for a good ad. 229 00:14:32.640 --> 00:14:33.840 So I'm trying to think like, 230 00:14:33.840 --> 00:14:35.200 like as going to the exercises, 231 00:14:35.200 --> 00:14:37.520 revenue is definitely my biggest constraint at this point. 232 00:14:38.400 --> 00:14:40.160 It's like, I've done all the other stuff too much. 233 00:14:40.160 --> 00:14:41.360 I've been focused on that. 234 00:14:41.360 --> 00:14:43.600 So I can make a better product faster. 235 00:14:43.600 --> 00:14:45.680 But I have need a better way to sell it. 236 00:14:45.680 --> 00:14:48.000 Like I need a better way to bring in customers. 237 00:14:48.000 --> 00:14:50.800 And so a bunch of the people have had great ideas on things to try. 238 00:14:50.800 --> 00:14:51.440 Oh. 239 00:14:51.520 --> 00:14:52.960 Dip in my toes in the TikTok. 240 00:14:52.960 --> 00:14:56.320 Or do a miscellaneous things on my email list. 241 00:14:56.320 --> 00:14:57.920 Yeah, TikTok shop is kind of interesting. 242 00:14:57.920 --> 00:14:58.560 It's about the problem. 243 00:14:58.560 --> 00:14:59.360 Yeah, that's okay. 244 00:14:59.360 --> 00:15:00.160 I'll be recommended. 245 00:15:00.160 --> 00:15:03.600 So if I, if you were in my shoes and you took like a step back 246 00:15:03.600 --> 00:15:05.360 to look at the business as a whole, 247 00:15:05.360 --> 00:15:08.640 where would you look at trying to apply your resources 248 00:15:08.640 --> 00:15:10.000 to really like, 249 00:15:10.000 --> 00:15:12.240 build up that revenue as efficiently as possible? 250 00:15:12.240 --> 00:15:13.680 Do you have, but all, 251 00:15:13.680 --> 00:15:15.440 is all of your revenue comes from Kickstarter 252 00:15:15.440 --> 00:15:17.280 or did they go to Amazon afterwards and then it becomes like? 253 00:15:17.280 --> 00:15:19.680 I would say 90% of it's coming through Kickstarter. 254 00:15:19.840 --> 00:15:22.000 And then on a regular basis, 255 00:15:22.000 --> 00:15:24.560 there's a project that launches every year. 256 00:15:24.560 --> 00:15:26.560 Well, the first project took about 14 months 257 00:15:26.560 --> 00:15:27.440 to get to the second one. 258 00:15:27.440 --> 00:15:28.480 But you only have two books. 259 00:15:28.480 --> 00:15:28.960 Yes. 260 00:15:28.960 --> 00:15:30.480 So I have a third project that I've ever had. 261 00:15:30.480 --> 00:15:32.160 So you have a launch business right now. 262 00:15:32.160 --> 00:15:32.880 Right now, yeah. 263 00:15:32.880 --> 00:15:36.000 Okay, so there's like basically no revenue between launches. 264 00:15:36.000 --> 00:15:37.520 Yeah, people can go buy the stuff 265 00:15:37.520 --> 00:15:39.440 in between launches on Shopify that I've got to. 266 00:15:39.440 --> 00:15:40.240 Yeah. 267 00:15:40.240 --> 00:15:42.240 And I've been thinking about setting up Amazon. 268 00:15:42.240 --> 00:15:43.360 You should set up Amazon. 269 00:15:43.360 --> 00:15:44.560 Yeah. 270 00:15:44.560 --> 00:15:47.040 We sell 50 times more books on Amazon than Shopify. 271 00:15:47.040 --> 00:15:49.120 Okay, so with the next play thing. 272 00:15:49.200 --> 00:15:51.120 I do a million a month in books. 273 00:15:51.120 --> 00:15:52.320 Okay. 274 00:15:52.320 --> 00:15:54.000 Oh, it's just as silly to me. 275 00:15:54.000 --> 00:15:57.920 And I'm like, silly, ridiculous. 276 00:15:57.920 --> 00:15:58.800 The books are free. 277 00:15:58.800 --> 00:16:00.400 So setting up Amazon. 278 00:16:00.400 --> 00:16:01.200 I'm like, they're free. 279 00:16:01.200 --> 00:16:02.000 You don't have to buy them. 280 00:16:02.000 --> 00:16:03.840 They're like, we're buying them. 281 00:16:04.560 --> 00:16:07.840 So setting up Amazon would be like the best revenue boost 282 00:16:07.840 --> 00:16:08.960 ignoring doing any more. 283 00:16:08.960 --> 00:16:10.560 Tomorrow, yeah, for sure. 284 00:16:10.560 --> 00:16:13.120 All right, because here's what's really interesting. 285 00:16:13.120 --> 00:16:18.000 Is that, did you watch my traffic ranking video? 286 00:16:18.000 --> 00:16:19.600 I put out like, it's three videos ago. 287 00:16:19.600 --> 00:16:20.600 Very recent. 288 00:16:20.600 --> 00:16:21.440 Anyway, I'll just tell you. 289 00:16:21.440 --> 00:16:23.360 So what's really interesting is that people don't think about 290 00:16:23.360 --> 00:16:26.720 Amazon as a traffic, like a social media or a traffic source. 291 00:16:26.720 --> 00:16:30.560 But I think like 13% of customers that, 292 00:16:30.560 --> 00:16:31.680 well, let's just test this. 293 00:16:31.680 --> 00:16:34.200 Watch my theory just look flop on this. 294 00:16:34.200 --> 00:16:36.480 Did anyone buy my book first? 295 00:16:36.480 --> 00:16:37.600 One, two, look at this. 296 00:16:39.040 --> 00:16:39.880 Cool. 297 00:16:39.880 --> 00:16:40.720 Okay, that's cool for me. 298 00:16:40.720 --> 00:16:41.880 Anyways, okay. 299 00:16:41.880 --> 00:16:45.960 So people will buy the book and then they'll find me later 300 00:16:45.960 --> 00:16:46.720 somewhere and they'll be like, 301 00:16:46.720 --> 00:16:48.960 oh, that's the guy that wrote the book that I like. 302 00:16:48.960 --> 00:16:51.200 And so Amazon actually gets me customers. 303 00:16:51.200 --> 00:16:53.640 There's this whole misnomer that you'll have to have an audience 304 00:16:53.640 --> 00:16:54.480 in order. 305 00:16:54.480 --> 00:16:55.920 You have to have an audience have a big launch. 306 00:16:55.920 --> 00:16:58.800 But if you have a good product, which it sounds like you do, 307 00:16:58.800 --> 00:17:02.000 then when you have 10,000 five stars, I buy books. 308 00:17:02.000 --> 00:17:03.880 If there's any business book, there's 10,000 five stars. 309 00:17:03.880 --> 00:17:05.080 I'll just buy it. 310 00:17:06.720 --> 00:17:09.560 And so number one is I would do Amazon for sure. 311 00:17:09.560 --> 00:17:12.280 Like for sure, it's where 90% of people buy books. 312 00:17:12.280 --> 00:17:13.760 It's like you're not on the biggest platform 313 00:17:13.760 --> 00:17:15.720 that people buy and sell books from. 314 00:17:15.720 --> 00:17:18.200 Now, you can still do your launches. 315 00:17:18.200 --> 00:17:19.920 I still launch through Shopify. 316 00:17:19.920 --> 00:17:22.960 So I can still own the customer base and all that stuff. 317 00:17:22.960 --> 00:17:25.800 But between by all means, like kick it up there 318 00:17:25.800 --> 00:17:28.360 and do it in multiple formats and multiple languages. 319 00:17:28.360 --> 00:17:32.240 Like right now, I think we have like 30 or 40 skews 320 00:17:32.240 --> 00:17:34.960 from two books. 321 00:17:34.960 --> 00:17:38.320 So it's like we have all four formats and we have two books 322 00:17:38.320 --> 00:17:41.720 and then we have them in five languages. 323 00:17:42.600 --> 00:17:45.520 And we have them on 13 platforms. 324 00:17:45.520 --> 00:17:47.560 So we have it on Kobo Digital or Kobo. 325 00:17:47.560 --> 00:17:48.520 We have Drafted Digital. 326 00:17:48.520 --> 00:17:50.960 We have like, it's kind of funny about publishing 327 00:17:50.960 --> 00:17:52.600 because it's a freshman mind. 328 00:17:52.600 --> 00:17:55.360 Bingram, if you've heard of that, Spark, 329 00:17:56.560 --> 00:17:58.000 if you Google it, it'll come up. 330 00:17:59.240 --> 00:18:01.400 And so all that to say, I think you just need to, 331 00:18:01.400 --> 00:18:03.640 like the first thing I would do this quarter 332 00:18:03.640 --> 00:18:05.360 is maximize all distribution of the books 333 00:18:05.360 --> 00:18:07.440 on all platforms that people buy books on. 334 00:18:07.440 --> 00:18:10.960 The first thing, the second thing I would do 335 00:18:10.960 --> 00:18:12.120 was try and expand my audience. 336 00:18:12.120 --> 00:18:14.480 Like right now, like let's just use all of the distribution 337 00:18:14.480 --> 00:18:15.440 that already exists. 338 00:18:15.440 --> 00:18:17.200 Let's do that first. 339 00:18:17.200 --> 00:18:21.240 And then you can do TikTok strategy or whatever you wanna do 340 00:18:21.240 --> 00:18:24.000 to basically market any other product that this works. 341 00:18:24.000 --> 00:18:26.080 Now long-term, once you get your third book out, 342 00:18:26.080 --> 00:18:27.320 it actually unlocks a bunch of stuff 343 00:18:27.320 --> 00:18:30.280 because you will be able to be profitable with ads 344 00:18:30.280 --> 00:18:32.120 because you're able to sell bundles 345 00:18:32.120 --> 00:18:33.280 and you can sell three books at a time. 346 00:18:33.280 --> 00:18:34.920 And you can sell really three, 347 00:18:34.920 --> 00:18:36.760 but it's like six books because you're gonna do audio 348 00:18:36.760 --> 00:18:41.080 and audio digital and hardback times three is nine books. 349 00:18:41.080 --> 00:18:44.880 And so you can get away with like basically a $99 or 125 350 00:18:45.000 --> 00:18:47.840 or $149 in terms of price tag and you'll be able to 351 00:18:47.840 --> 00:18:49.840 you'll be able to arbitrage the traffic that way. 352 00:18:49.840 --> 00:18:50.680 Okay. 353 00:18:50.680 --> 00:18:53.680 You would never buy one of these as like an audio book 354 00:18:53.680 --> 00:18:55.720 because it would be, I mean since you're using this 355 00:18:55.720 --> 00:18:58.440 as like to understand your character and stuff like that. 356 00:18:58.440 --> 00:19:00.560 But I think the platform could still make sense 357 00:19:00.560 --> 00:19:01.400 then for doing it. 358 00:19:01.400 --> 00:19:02.280 I'll say this. 359 00:19:02.280 --> 00:19:03.120 Yeah. 360 00:19:03.120 --> 00:19:04.200 You would be surprised. 361 00:19:05.200 --> 00:19:06.440 I would be very surprised. 362 00:19:06.440 --> 00:19:07.280 Yeah. 363 00:19:07.280 --> 00:19:08.560 Like you'd be surprised. 364 00:19:08.560 --> 00:19:12.120 I, my workbooks are audio, but they're workbooks. 365 00:19:12.120 --> 00:19:13.520 But people buy them on audio. 366 00:19:13.560 --> 00:19:15.200 I don't know if I've ever seen anyone try that, 367 00:19:15.200 --> 00:19:16.880 but that doesn't mean it couldn't be done. 368 00:19:16.880 --> 00:19:21.880 People listen, like listening is a very different experience. 369 00:19:21.880 --> 00:19:24.040 And a lot of times people are like, okay, 370 00:19:24.040 --> 00:19:25.320 just having the background. 371 00:19:26.880 --> 00:19:28.280 Because what's interesting, like I get a lot of people 372 00:19:28.280 --> 00:19:30.920 who tell me like, oh yeah, listen to your book six times. 373 00:19:30.920 --> 00:19:31.760 Right. 374 00:19:31.760 --> 00:19:33.560 And it's just like listening your comprehension 375 00:19:33.560 --> 00:19:34.680 significantly lower than visual 376 00:19:34.680 --> 00:19:36.960 because it's a second attention stream. 377 00:19:36.960 --> 00:19:38.400 You're doing other stuff too. 378 00:19:38.400 --> 00:19:39.680 And so it's like every time they listen to it, 379 00:19:39.680 --> 00:19:40.760 they get something else. 380 00:19:40.760 --> 00:19:41.600 It's the same book. 381 00:19:41.600 --> 00:19:43.880 It might, dude, it'll take you a half day 382 00:19:43.880 --> 00:19:45.880 to narrate it, like throw it up. 383 00:19:45.880 --> 00:19:47.400 If people hate it, you can take it down. 384 00:19:47.400 --> 00:19:48.400 Yeah. 385 00:19:48.400 --> 00:19:49.320 All right, thanks, appreciate it. 386 00:19:49.320 --> 00:19:50.160 Yeah, you bet. 387 00:19:50.160 --> 00:19:52.120 And 50% of, it's increased. 388 00:19:52.120 --> 00:19:53.880 It used to be 25, but it's a slowly increased, 389 00:19:53.880 --> 00:19:55.200 I think, not 50. 390 00:19:55.200 --> 00:19:59.360 I think it's maybe like 40% of our sales or audio. 391 00:19:59.360 --> 00:20:00.560 I have a hair extension business. 392 00:20:00.560 --> 00:20:02.480 We educate the stylist how to make more money 393 00:20:02.480 --> 00:20:05.240 and salon owners with hair extensions with the product. 394 00:20:05.240 --> 00:20:07.400 I want to know how Jim launch was structured 395 00:20:07.400 --> 00:20:08.600 because I know that that's how we need 396 00:20:08.600 --> 00:20:10.560 to structure our offer. 397 00:20:10.640 --> 00:20:12.720 So can you tell me a little bit about that? 398 00:20:12.720 --> 00:20:16.680 Yeah, I mean, I think I've talked to like 399 00:20:16.680 --> 00:20:20.560 three different businesses that do what you do recently. 400 00:20:20.560 --> 00:20:22.000 So it's very tough. 401 00:20:22.000 --> 00:20:23.840 Yeah. 402 00:20:23.840 --> 00:20:29.520 So a big picture, the model that seems to work the best 403 00:20:29.520 --> 00:20:32.240 is, and it is similar to Jim launch of Prestige Labs, 404 00:20:32.240 --> 00:20:36.720 which is the, we will show you how to do the thing, right? 405 00:20:36.720 --> 00:20:38.600 And then you can also sell our thing 406 00:20:38.600 --> 00:20:40.280 once I've taught you how to do the thing. 407 00:20:40.280 --> 00:20:42.720 And so the recurring revenue comes from reoccurring revenue 408 00:20:42.720 --> 00:20:44.960 in that they continue to buy the hair extensions 409 00:20:44.960 --> 00:20:47.440 and then on the front end, it really comes down to like, 410 00:20:47.440 --> 00:20:49.520 what makes that business very valuable? 411 00:20:49.520 --> 00:20:53.480 Is proving out what percentage of customers 412 00:20:53.480 --> 00:20:57.760 who buy the education become permanent hair sellers? 413 00:20:57.760 --> 00:20:58.760 Yeah, 80. 414 00:20:58.760 --> 00:20:59.600 80. 415 00:20:59.600 --> 00:21:01.240 And when I say that, so the year over year 416 00:21:01.240 --> 00:21:02.760 they continue to sell, right? 417 00:21:02.760 --> 00:21:06.120 And so the smart cookie move is to, 418 00:21:06.120 --> 00:21:08.040 what are you pricing the front end up? 419 00:21:08.040 --> 00:21:11.480 The education, where we're kind of making new offer, 420 00:21:11.480 --> 00:21:14.080 but for under six figure stylists, 421 00:21:14.080 --> 00:21:18.000 it'll be $500 a month, six figure to salon owner, 422 00:21:18.000 --> 00:21:20.360 it'll be $2,000 a month, salon owner, 4K a month. 423 00:21:20.360 --> 00:21:24.720 Or the reason I ask is that if you have a backend 424 00:21:24.720 --> 00:21:26.480 where, you know, you probably run what, 425 00:21:26.480 --> 00:21:28.840 50% margins on the hair, something like that. 426 00:21:28.840 --> 00:21:29.680 Is that all right? 427 00:21:29.680 --> 00:21:30.520 65. 428 00:21:30.520 --> 00:21:31.520 Great. 429 00:21:31.520 --> 00:21:34.920 I don't even care about the education. 430 00:21:34.920 --> 00:21:36.600 The majority of the enterprise value 431 00:21:36.600 --> 00:21:39.840 will come from, is the hair side bigger than the info side? 432 00:21:39.840 --> 00:21:41.640 Yeah, it's 90% of our business. 433 00:21:41.640 --> 00:21:42.160 Oh, is it? 434 00:21:42.160 --> 00:21:42.840 OK, yeah. 435 00:21:42.840 --> 00:21:46.400 Well, then I, in some ways, would almost like lower the barrier. 436 00:21:46.400 --> 00:21:49.640 Because if that's the monetization, 437 00:21:49.640 --> 00:21:52.800 then the question to solve for is, 438 00:21:52.800 --> 00:21:57.880 how do we get the absolute most amount of people to sell hair? 439 00:21:57.880 --> 00:22:00.680 And so you could think about it as offset 440 00:22:00.680 --> 00:22:05.120 cack for the hair business more than its own business 441 00:22:05.120 --> 00:22:06.480 and it's unrightened, don't get me wrong. 442 00:22:06.480 --> 00:22:08.000 I'm all for it if I had to make money or not make money. 443 00:22:08.000 --> 00:22:09.880 I'd rather make money, right? 444 00:22:09.880 --> 00:22:12.080 But when we're talking about penetration of market share 445 00:22:12.080 --> 00:22:14.920 because you're trying to flip people into your selling 446 00:22:14.920 --> 00:22:20.920 your stuff, then if I could prove that for $300, 447 00:22:20.920 --> 00:22:23.360 I could get somebody activated and they actually would sell 448 00:22:23.360 --> 00:22:24.800 hair. 449 00:22:24.800 --> 00:22:27.560 And I would sell 20 times more people. 450 00:22:27.560 --> 00:22:30.760 And I make all my money on the hair anyways, 451 00:22:30.760 --> 00:22:33.920 then it basically, it's almost like creating artificial friction. 452 00:22:33.920 --> 00:22:34.520 Yeah. 453 00:22:34.760 --> 00:22:36.680 I'm not saying go to 300 because they might say, 454 00:22:36.680 --> 00:22:41.880 yes, at $300,000, $200,000, go to the highest that sells the most 455 00:22:41.880 --> 00:22:46.160 without getting into that next tier of losing buyers 456 00:22:46.160 --> 00:22:47.400 that you otherwise would have had. 457 00:22:47.400 --> 00:22:50.360 Should they pay for education or just their product spend? 458 00:22:50.360 --> 00:22:51.520 So this is an exchange of assets. 459 00:22:51.520 --> 00:22:52.400 It's a good way of doing it. 460 00:22:52.400 --> 00:22:54.440 We did that with prestige labs. 461 00:22:54.440 --> 00:22:56.560 We would have them buy, it's a little bit 462 00:22:56.560 --> 00:22:57.600 different because it was consumable. 463 00:22:57.600 --> 00:23:01.360 But we would have a salon, for example, or a gym 464 00:23:01.440 --> 00:23:04.840 buy supplements, a stack for each of their trainers. 465 00:23:04.840 --> 00:23:07.520 I'm a little high if they can turn this down a little bit. 466 00:23:09.760 --> 00:23:14.280 And so all the trainers of the gym would all go do a 30-day 467 00:23:14.280 --> 00:23:15.360 challenge or whatever. 468 00:23:15.360 --> 00:23:18.000 They'd use the products and then they would be, 469 00:23:18.000 --> 00:23:20.760 they would have conviction that it actually worked. 470 00:23:20.760 --> 00:23:23.120 And so then it made the sales on the back and so much easier. 471 00:23:23.120 --> 00:23:24.040 They're like, hey, I just did it. 472 00:23:24.040 --> 00:23:26.160 Look at my vernacular pictures like this stuff's really good. 473 00:23:26.160 --> 00:23:28.600 And so in order to activate them, we had them buy something 474 00:23:28.600 --> 00:23:29.640 like $5,000. 475 00:23:29.760 --> 00:23:32.720 We probably know, I think around $5,000 for the product. 476 00:23:32.720 --> 00:23:36.440 And then he gave them basically the education for free. 477 00:23:36.440 --> 00:23:40.240 So you still had that like, you still have that buy-in? 478 00:23:40.240 --> 00:23:41.280 Yeah, you still have that buy-in. 479 00:23:41.280 --> 00:23:43.640 And you know what's crazy is that you'll be amazed. 480 00:23:43.640 --> 00:23:45.520 You'll be able to sell way more product 481 00:23:45.520 --> 00:23:46.840 when you've already to know this. 482 00:23:46.840 --> 00:23:49.640 It's way easier to sell product than it is to sell info. 483 00:23:49.640 --> 00:23:50.360 Way easier. 484 00:23:51.360 --> 00:23:52.880 Because you don't have to, like, they get it. 485 00:23:52.880 --> 00:23:54.440 Like everybody here, who sells info, 486 00:23:54.440 --> 00:23:56.520 like when you start, if you ever sell like physical stuff, 487 00:23:56.520 --> 00:23:57.480 you're like, oh my god. 488 00:23:58.480 --> 00:24:01.120 Because we're so used to selling like an empty box of air, 489 00:24:01.120 --> 00:24:02.640 being like, this is very valuable. 490 00:24:02.640 --> 00:24:04.320 But when you actually have something in your hands, 491 00:24:04.320 --> 00:24:05.640 it's like, oh my god, this is so much easier. 492 00:24:05.640 --> 00:24:06.480 Like, you can see it. 493 00:24:06.480 --> 00:24:08.760 And look, put it in your hair, it's hot, you know? 494 00:24:08.760 --> 00:24:10.840 So anyway, is that help? 495 00:24:10.840 --> 00:24:11.680 Yeah, it does. 496 00:24:11.680 --> 00:24:12.520 Thank you so much. 497 00:24:12.520 --> 00:24:14.800 Yeah, don't like break your business tomorrow. 498 00:24:14.800 --> 00:24:18.120 But like, I would experiment with just what allows me 499 00:24:18.120 --> 00:24:19.480 to spend the absolute most amount of money 500 00:24:19.480 --> 00:24:21.160 to get the most people telling here. 501 00:24:21.160 --> 00:24:23.160 That's the problem to solve. 502 00:24:23.160 --> 00:24:24.320 Hi Alex. 503 00:24:24.320 --> 00:24:25.400 My name's Julia. 504 00:24:25.400 --> 00:24:25.920 Oh, Julia. 505 00:24:25.920 --> 00:24:28.880 And I'm an online fitness coach for Women Over 50. 506 00:24:28.880 --> 00:24:29.400 Cool. 507 00:24:29.400 --> 00:24:30.520 Because I do my job so well. 508 00:24:30.520 --> 00:24:31.360 Over 50. 509 00:24:31.360 --> 00:24:31.880 Yeah. 510 00:24:31.880 --> 00:24:32.480 Oh, OK. 511 00:24:32.480 --> 00:24:33.160 Yeah, there's a. 512 00:24:33.160 --> 00:24:35.760 I would have thought over 30, but OK, that's fine. 513 00:24:35.760 --> 00:24:40.160 Anyway, because women have so much success in my program 514 00:24:40.160 --> 00:24:44.640 after 12 months, 18 months, they're gone. 515 00:24:44.640 --> 00:24:46.760 I don't know what to offer them after that. 516 00:24:46.760 --> 00:24:49.520 But I also have a huge opportunity 517 00:24:49.520 --> 00:24:53.320 to tap a high net worth individual community 518 00:24:53.320 --> 00:24:56.720 where instead of paying $1,000 a month for six months 519 00:24:56.720 --> 00:25:01.840 or 12 months, $24K to $100K a year. 520 00:25:01.840 --> 00:25:03.720 One of the reasons I came this weekend 521 00:25:03.720 --> 00:25:06.600 was to figure out what direction I should go 522 00:25:06.600 --> 00:25:09.280 and I got a whole lot of other valuable content 523 00:25:09.280 --> 00:25:10.320 that I was expecting. 524 00:25:10.320 --> 00:25:11.560 So thank you. 525 00:25:11.560 --> 00:25:13.600 But where should I focus my energy? 526 00:25:13.600 --> 00:25:18.800 Because really, when my clients reach their goal, they're gone. 527 00:25:18.800 --> 00:25:20.360 I wouldn't worry about the revenue retention 528 00:25:20.360 --> 00:25:21.880 piece for your business. 529 00:25:21.880 --> 00:25:23.600 So this is a really good exercise for anybody. 530 00:25:23.600 --> 00:25:25.840 I try and think of like, what are the biggest people 531 00:25:25.840 --> 00:25:27.320 in the space do? 532 00:25:27.320 --> 00:25:29.800 Like, what are those businesses look like? 533 00:25:29.800 --> 00:25:32.160 And so wait watchers, Jenny, I'm not saying 534 00:25:32.160 --> 00:25:35.360 you're the same thing, but just in the space of wait loss, 535 00:25:35.360 --> 00:25:37.920 which is the space you're in. 536 00:25:37.920 --> 00:25:39.920 Almost none of them have revenue retention. 537 00:25:39.920 --> 00:25:42.360 And so Tinder, for example, I don't know if it was them, 538 00:25:42.360 --> 00:25:44.240 but one of them was like, the point of this app 539 00:25:44.240 --> 00:25:45.280 is to get deleted. 540 00:25:45.280 --> 00:25:49.760 Not all businesses have to have revenue retention. 541 00:25:49.760 --> 00:25:52.240 But this is where because people get single again 542 00:25:52.240 --> 00:25:53.280 and then they come back. 543 00:25:53.280 --> 00:25:55.720 Or they get fat again and come back. 544 00:25:55.720 --> 00:26:00.160 So it becomes more reoccurring than recurring in terms 545 00:26:00.160 --> 00:26:00.800 of revenue. 546 00:26:00.800 --> 00:26:03.960 But I think all of this comes bound to or bubbles up 547 00:26:03.960 --> 00:26:06.240 to what your goal is. 548 00:26:06.240 --> 00:26:09.200 To have an impact and make lots of money. 549 00:26:09.200 --> 00:26:10.480 Well, you already have the impact when you're 550 00:26:10.480 --> 00:26:11.240 already making lots of money. 551 00:26:11.240 --> 00:26:12.240 So it has to be different than that. 552 00:26:12.240 --> 00:26:13.560 It's not enough, but anyway. 553 00:26:13.560 --> 00:26:14.160 Me neither. 554 00:26:14.160 --> 00:26:16.640 Yeah. 555 00:26:17.640 --> 00:26:20.520 I guess my goal is to reach as many people as I can. 556 00:26:20.520 --> 00:26:21.680 Well, then make it free. 557 00:26:21.680 --> 00:26:22.360 Say again. 558 00:26:22.360 --> 00:26:23.440 Then just make it all free. 559 00:26:23.440 --> 00:26:24.360 I can't know. 560 00:26:24.360 --> 00:26:26.280 OK, so then what's the goal? 561 00:26:26.280 --> 00:26:27.560 To make money. 562 00:26:27.560 --> 00:26:28.520 OK, fine. 563 00:26:28.520 --> 00:26:30.640 So do you want to make money by selling it? 564 00:26:30.640 --> 00:26:32.080 Or do you want to make money by growing the revenue 565 00:26:32.080 --> 00:26:33.080 of the business? 566 00:26:33.080 --> 00:26:34.040 Growing the revenue. 567 00:26:34.040 --> 00:26:34.640 OK. 568 00:26:34.640 --> 00:26:38.400 In a model that I love doing. 569 00:26:38.400 --> 00:26:40.440 I was pushing back on the impact, whatever thing. 570 00:26:40.440 --> 00:26:41.920 Because I also talked to business owners all day. 571 00:26:41.920 --> 00:26:43.800 I'm like, I hear that show all the time. 572 00:26:43.800 --> 00:26:45.440 Because if that were true, then you wouldn't be like, 573 00:26:45.440 --> 00:26:48.800 OK, I want to sell even fewer people at a higher price. 574 00:26:48.800 --> 00:26:50.520 I don't care to be clear. 575 00:26:50.520 --> 00:26:51.120 Make money. 576 00:26:51.120 --> 00:26:53.920 I'm all for it. 577 00:26:53.920 --> 00:26:55.680 If we can't clearly state our goal, we certainly 578 00:26:55.680 --> 00:26:56.640 won't hit it. 579 00:26:56.640 --> 00:26:59.040 You're going to hit it by accident, for sure. 580 00:26:59.040 --> 00:27:01.800 So if you just said, hey, Alex, I want to triple the profit 581 00:27:01.800 --> 00:27:02.440 of this business. 582 00:27:02.440 --> 00:27:03.320 I'd be like, cool. 583 00:27:03.320 --> 00:27:06.880 Well, now we can actually pull this apart and take this. 584 00:27:06.880 --> 00:27:09.120 Now you might have your own things around that. 585 00:27:09.120 --> 00:27:11.120 But it's just much easier for me. 586 00:27:11.120 --> 00:27:12.280 So what's revenue right now? 587 00:27:12.280 --> 00:27:14.440 What's bottom line? 588 00:27:14.440 --> 00:27:17.720 The top line revenue in the last two years is like 700K. 589 00:27:17.720 --> 00:27:19.080 OK. 590 00:27:19.080 --> 00:27:20.720 What's bottom? 591 00:27:20.720 --> 00:27:24.960 You know, when we did all that stuff, I was like, you're good. 592 00:27:24.960 --> 00:27:26.000 Can I just say it's not super hot? 593 00:27:26.000 --> 00:27:26.600 I know my number. 594 00:27:26.600 --> 00:27:28.320 It's almost a minute right now. 595 00:27:28.320 --> 00:27:28.600 You're good. 596 00:27:28.600 --> 00:27:29.440 That's fun. 597 00:27:29.440 --> 00:27:32.680 So you have something that's working, right? 598 00:27:32.680 --> 00:27:35.800 So people are paying you $1,000 a month. 599 00:27:35.800 --> 00:27:39.680 OK, so the issue that you have I'm guessing is marketing. 600 00:27:39.680 --> 00:27:40.560 Market? 601 00:27:40.560 --> 00:27:41.760 Yeah, no, advertising. 602 00:27:41.760 --> 00:27:43.560 You're not like not enough people know you exist. 603 00:27:43.560 --> 00:27:45.600 Yeah, that's definitely a constraint. 604 00:27:45.600 --> 00:27:45.800 Right. 605 00:27:45.800 --> 00:27:50.720 So I certainly would not advise you to do anything new right now. 606 00:27:50.720 --> 00:27:52.080 I think you need to sell more. 607 00:27:52.080 --> 00:27:54.040 Can you handle more customers? 608 00:27:54.040 --> 00:27:54.760 Yeah. 609 00:27:54.760 --> 00:27:55.280 OK. 610 00:27:55.280 --> 00:27:57.680 Then I would be trying to sell more. 611 00:27:57.680 --> 00:28:00.840 And sell more at what's making money now? 612 00:28:00.840 --> 00:28:01.960 Or to focus also on that? 613 00:28:01.960 --> 00:28:04.160 Do you have decent margins on what you sell now? 614 00:28:04.160 --> 00:28:05.080 Absolutely. 615 00:28:05.080 --> 00:28:06.520 I have zero ad spend. 616 00:28:06.520 --> 00:28:07.520 I don't have any employee. 617 00:28:07.520 --> 00:28:09.040 I do have consultants that I pay. 618 00:28:09.040 --> 00:28:09.560 Yeah. 619 00:28:09.560 --> 00:28:12.720 So you actually have the classic small influencer issue, 620 00:28:12.720 --> 00:28:16.000 which is anybody who's organic typically 621 00:28:16.000 --> 00:28:19.120 wants to create many products because they only 622 00:28:19.120 --> 00:28:21.040 have one base of customers. 623 00:28:21.040 --> 00:28:23.280 And so the only way they can think to make more money 624 00:28:23.280 --> 00:28:25.000 is to sell them something else. 625 00:28:25.000 --> 00:28:26.960 But it should really just see your organic audience 626 00:28:26.960 --> 00:28:29.440 as the jump start to then continuing 627 00:28:29.440 --> 00:28:31.480 to sell to colder and colder traffic. 628 00:28:31.480 --> 00:28:33.040 Because otherwise you start five businesses. 629 00:28:33.040 --> 00:28:34.400 And every single person here has probably 630 00:28:34.400 --> 00:28:36.480 seen the influence that has five different revenue streams. 631 00:28:36.480 --> 00:28:38.920 They all add up to in total $1 million a year. 632 00:28:38.920 --> 00:28:41.000 But they're like, you know what I should do at a sixth. 633 00:28:41.000 --> 00:28:43.640 And so this will be different, right? 634 00:28:43.640 --> 00:28:46.880 So it's just that you only know one way to advertise. 635 00:28:46.880 --> 00:28:48.000 And so you're looking at all these things that 636 00:28:48.000 --> 00:28:49.040 I need to change about my business. 637 00:28:49.040 --> 00:28:50.080 But you just need to advertise more. 638 00:28:50.080 --> 00:28:51.280 OK. 639 00:28:51.280 --> 00:28:52.120 Good. 640 00:28:52.120 --> 00:28:52.440 Yeah. 641 00:28:52.440 --> 00:28:53.720 That's honest. 642 00:28:53.720 --> 00:28:55.960 I wouldn't add any complexity to the business 643 00:28:55.960 --> 00:28:57.360 that you already have. 644 00:28:57.360 --> 00:28:59.720 Now, if you want to add an anchor product that's a hundred grand, 645 00:28:59.720 --> 00:29:01.920 I'm all for adding super high anchors. 646 00:29:01.920 --> 00:29:02.880 Why not? 647 00:29:02.880 --> 00:29:05.640 So when you add an anchor, by the way, the way this works, 648 00:29:05.640 --> 00:29:09.480 so I learned this technique when I went to a suit shop. 649 00:29:09.480 --> 00:29:11.600 And I was poor. 650 00:29:11.600 --> 00:29:14.200 And I was told that I needed a nice suit. 651 00:29:14.200 --> 00:29:15.400 And so I went there and I said, I'll 652 00:29:15.400 --> 00:29:16.800 I'm going to pay $500. 653 00:29:16.800 --> 00:29:18.520 That's my max for getting a suit. 654 00:29:18.520 --> 00:29:20.680 I go in and a friend of mine set up the connection. 655 00:29:20.680 --> 00:29:22.680 So he's like, this guy's awesome. 656 00:29:22.680 --> 00:29:23.600 So I get there. 657 00:29:23.600 --> 00:29:25.280 And he does my measurements and he 658 00:29:25.280 --> 00:29:27.200 lines up this big rack of suits. 659 00:29:27.200 --> 00:29:28.920 And so he puts the first one on. 660 00:29:28.920 --> 00:29:32.320 And I was like, man, feel like a boss. 661 00:29:32.320 --> 00:29:33.120 And he's like, she's like, that one? 662 00:29:33.120 --> 00:29:34.400 I was like, yeah, it's like cool. 663 00:29:34.400 --> 00:29:35.280 I look at the tag. 664 00:29:35.280 --> 00:29:36.880 It's $16,000. 665 00:29:36.880 --> 00:29:39.440 And I was like, oh, I like the blood. 666 00:29:39.440 --> 00:29:40.440 Just drained from my face. 667 00:29:40.440 --> 00:29:43.800 And I was like, this is a car. 668 00:29:43.800 --> 00:29:48.440 And so I was like, and he saw that I like shit my pants. 669 00:29:48.440 --> 00:29:51.440 And his nice new pants that I was wearing. 670 00:29:51.440 --> 00:29:54.560 And he said, do you care about the brand? 671 00:29:54.560 --> 00:29:56.600 And I was like, no, don't care about the brand. 672 00:29:56.600 --> 00:29:58.760 And he was like, I got you support. 673 00:29:58.760 --> 00:30:02.160 He took one off and put another one on me and one move. 674 00:30:02.160 --> 00:30:03.560 And this one, I'd even look at the mirror. 675 00:30:03.560 --> 00:30:05.800 I just looked at the tags. 676 00:30:05.800 --> 00:30:06.600 And he was too grand. 677 00:30:06.600 --> 00:30:09.480 And I was like, OK, I can swing this. 678 00:30:09.480 --> 00:30:11.440 At least I'm not going to, because my friend made the intro. 679 00:30:11.440 --> 00:30:14.080 I didn't want to be an idiot, which now 680 00:30:14.080 --> 00:30:15.120 would give zero fucks about. 681 00:30:15.120 --> 00:30:16.760 But anyways. 682 00:30:16.760 --> 00:30:20.040 And so I ended up spending $500 on socks and handkerchiefs 683 00:30:20.040 --> 00:30:20.560 at this place. 684 00:30:20.560 --> 00:30:22.480 And I walked out spending $2,500. 685 00:30:22.480 --> 00:30:24.960 And only after I walked out did I realize that I spent five 686 00:30:24.960 --> 00:30:27.160 times with my budgeted amount was. 687 00:30:27.160 --> 00:30:29.000 And this guy was a fourth generation tailor. 688 00:30:29.000 --> 00:30:32.320 He knew exactly what he was doing. 689 00:30:32.320 --> 00:30:35.040 Because he had the one that was one eighth of the price 690 00:30:35.040 --> 00:30:37.000 already there. 691 00:30:37.000 --> 00:30:39.160 And so when you have an anchor upsell, 692 00:30:39.160 --> 00:30:40.360 the way you want to do it is there 693 00:30:40.360 --> 00:30:42.720 is something called primary and secondary features. 694 00:30:42.720 --> 00:30:44.920 And so the primary feature of the suit for me 695 00:30:44.920 --> 00:30:46.960 is to look cool. 696 00:30:46.960 --> 00:30:48.360 The secondary features of the suit 697 00:30:48.360 --> 00:30:50.440 would be what's the material, what's the brand, 698 00:30:50.440 --> 00:30:51.720 like all of those things. 699 00:30:51.720 --> 00:30:55.040 And so what you do is you have your anchor at $25,000, $50,000, 700 00:30:55.040 --> 00:30:56.000 whatever you want. 701 00:30:56.000 --> 00:30:59.440 And then you get the gasp, and people shit themselves. 702 00:30:59.440 --> 00:31:01.560 And one out of 10 people are like, awesome, that sounds great. 703 00:31:01.560 --> 00:31:02.720 And you're like, holy shit, this guy just 704 00:31:02.720 --> 00:31:03.800 spent $50 grand on this. 705 00:31:03.800 --> 00:31:04.840 And he probably would be like, holy shit, 706 00:31:04.840 --> 00:31:06.680 this guy's this kid just spent $16 grand. 707 00:31:06.680 --> 00:31:07.760 I was like 24. 708 00:31:07.760 --> 00:31:09.880 Of course I didn't have 16 grand, right? 709 00:31:09.880 --> 00:31:11.320 But he still put it on me. 710 00:31:11.320 --> 00:31:12.800 The secondary features are the things 711 00:31:12.800 --> 00:31:15.080 that are not material to most people 712 00:31:15.080 --> 00:31:16.640 so that what you can do is basically deliver 713 00:31:16.640 --> 00:31:20.040 a 90% of the same product for one tenth of the price. 714 00:31:20.040 --> 00:31:21.920 And then people were like, this is like, 715 00:31:21.920 --> 00:31:23.120 I'm pulling one on this guy. 716 00:31:23.120 --> 00:31:24.280 He doesn't know these sold me a suit 717 00:31:24.280 --> 00:31:26.200 that's almost the same as this $100,000 suit. 718 00:31:26.200 --> 00:31:28.600 And you're like, this guy is about to buy a $5,000 suit 719 00:31:28.600 --> 00:31:30.080 that's really a $500 suit. 720 00:31:30.080 --> 00:31:32.080 Because I showed him $100,000 one first. 721 00:31:32.960 --> 00:31:34.240 And so you just change the things 722 00:31:34.240 --> 00:31:35.840 that aren't material to most people. 723 00:31:35.840 --> 00:31:36.880 And you want to come to the rescue. 724 00:31:36.880 --> 00:31:38.840 It's like, hey, do you care if you have myself 725 00:31:38.840 --> 00:31:40.440 or are you good just with Slack? 726 00:31:40.440 --> 00:31:41.480 It's like, oh, it sucks fine. 727 00:31:41.480 --> 00:31:42.400 Yeah, it's like, okay, cool. 728 00:31:42.400 --> 00:31:44.320 Well, then we can still pretty much get you there. 729 00:31:44.320 --> 00:31:47.520 Vacation, plane flight, just a slightly differently. 730 00:31:47.520 --> 00:31:49.480 So I think if you add the angraps on 731 00:31:49.480 --> 00:31:51.080 and then all of the cash that you get 732 00:31:51.080 --> 00:31:52.520 from the few people who take that, 733 00:31:52.520 --> 00:31:53.840 pour it all into advertising. 734 00:31:54.800 --> 00:31:56.720 Perfect, thank you so much. 735 00:31:56.720 --> 00:31:57.560 You bet.