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We have multiple transformations have to occur. We can solve the acute problem of what they're

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coming for today. But once we solve that problem, they're going to leave unless we have a broader

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journey that they're going to be on. And some of the best journeys are the journeys of becoming

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because they never had. The wealthiest people in the world see business as a game. This podcast,

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the game is my attempt at documenting the lessons I've learned on my way to building acquisition.com

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into a billion dollar portfolio. My hope is that you use the lessons to bring your business and maybe

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someday soon partner with us to get to a hundred million dollars and beyond. I hope you share

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and enjoy. If I were to build a physical products brand, I probably would do a no-strip.

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And the reason I would do a no-strip is for our couple reasons. One is that no-strip costs pennies

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to manufacture. You can sell them for a hundred times that price. If it costs you two cents and you

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could sell for a buck, you're making huge margins on the actual thing. The second thing is that it's

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sticky quite literally. But also from our current standpoint, if you can improve how someone breathes,

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they're going to buy it again and again and again right over and over and over again. They're

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going to use it every day. It's also something that doesn't require willpower to use. You don't

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have to remember to do it. Like the problem with supplements is that people have to remember

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to take them. They also have to associate it with being healthy, which most people struggle with.

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Whereas most people always sleep. They don't. Most people sleep every day. Most people don't

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work out every day. And so I'd rather associate a product with something that people are doing on a

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regular basis without willpower. It's the reason beauty products to me are more interesting than

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fitness products. Buy in large because every girl wants to look pretty and not have to work out

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versus having to get the willpower to work out, etc. Flipside, you can have fitness apparel,

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which you can wear even if you don't work out because then you feel like you're somebody who works

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out. So you actually get the status without having to do the work. And so whenever I have things

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like that, those little arbitrage status arbitrage are things that are interesting to me. And so

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I would probably do a nose trip because I use them all the time. And so I have deep product knowledge

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on like the goods and the bads of different brands that I've used. I don't promote any brand

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because I'm not thrilled about any brand. Just if anyone's curious, if I were to do it,

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then that would probably be a product I would build. And then I could have auto ship built into it,

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which would be nice and it makes it convenient for people. You can also explain to people how to

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use it, which is like you want one in your suitcase so that when you travel it's there. You don't

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have to think about it. You want one next to your bed. You want spares in the rooms that you ever

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sleep extra and you won't want one in your backpack if you're traveling as well. So you have them

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in different places. And then we also get more purchases. And then the things that I would probably

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do to make it different is I'd focus a lot on the product obviously because like in these types

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of things, the reason that I don't pimp any brand out is because like I don't really like any of

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the brands. They've like all got big things that I'm not a fan of. But I would also probably try

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and tie in some sort of branding element, which is like I would put like volume or persist

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or endure across the bridge of the nose. And I would have it spelled backwards so that in the

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mirror, someone could see it and they could see it every day. And it would remind people of like a

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word that they're trying to focus on for a season. And so I like having those constant daily

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subconscious reminders around things. They actually found in sales rooms that having a single word

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on the wall affected performance from the team even if it was just huge. So if you just have like

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one more, you know, mean on the wall, then everyone sees that as this daily reminder that they

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need to keep going, they need to keep going, they need to do one more. And so I would want my face

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to be the walking billboard for my eyes. So every time I looked in the mirror, I'd be reminded of this

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thing. And I would want that to be like the different, the different flavors of the nose strips

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would be the words that people are working on. So might be patience, might be weight, might be

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volume, it might be, you know, kindness, whatever it is, whatever that, whatever thing you're working

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on right now. So I probably do something like that. And so yeah, if anybody has the logistical

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capabilities to recreate that. And I prefer disposable, because I've seen the ones that are,

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like I've used the ones that are like pieces that go with it, not a huge fan because I lose them.

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And I walk around within the morning and I take it out, I put in my pocket and then I wash it,

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or I leave it on my kitchen table and then it goes somewhere else, then I'm in bed and I'm like,

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I should I need to go get out of bed to go get the thing. Like I don't like that. I like the

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disposable ones. And I'd like to have one that was clear that had the word. So the only thing you

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see is the word, which I think would be really cool. And by far, the biggest thing that I would have

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to work is it has to stick. It has to stick all the way through. So it has to work on non-oily

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surfaces and oily surfaces alike because people have different nose, you know, whatever. And so

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anyways, that would be the product that I would probably sell if I were going to get into physical

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products. And so that's the kind of the reasoning behind it. I have really high gross margins,

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it's really sticky. I would have a unique brand that was built around it and I would have

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ancillary benefits like the words that are beneficial to the person outside of just the strip.

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And so when every time they put that on, not only do they have the immediate benefit of breathing

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better, but they also have the long-term mental benefit of the thing that they're trying to work on

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being reminded of that every day, every moment, hundreds of times a day, which there are very

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few things that you can get reminded of many times a day subconsciously like that. That will make

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a difference in your life. And I think that's one of them. And so I'll give you a basic estimate of

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what I think would end up happening money-wise. So they currently sell for about 30 cents a strip.

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They probably cost a penny or less to make, especially at scale. All right. So that means retail

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is probably I would want to be a little bit premium. So I'd probably be at $19.99 would probably be

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a price point that I would look at, maybe $24.99. I would, you know, we'd split test the price points

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there, but it'd probably be in that range that I would sell the products. My cost of goods would

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almost be entirely based on the shipping cost that's associated. So if I put 30 days of strips in,

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and I'd probably sell 30, 60, 90 packs, because it's actually one of the things that I hate is that

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my upsells would probably be like one, three, and then probably six, 12. I probably have five options

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on my upsell with, you know, all the way down to maybe 15% off if they buy, you know, 12 months worth

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and then cascading upwards in terms of smaller percentages off. But let's do the math on how much

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money this would make. So if I just did my own promotion, if I get, let's say, let's say 10,000

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people a month would go to a page if I said, hey, check this out, right? And if I didn't consistently,

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probably about 10,000 people a month, just clicks, right? So if I got 10,000 people a month to a page,

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and then we converted 5% of traffic on that page, then we would have 500 buyers. So 500 buyers,

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and let's just keep it at the monthly rather than getting in the average bundles. And so let's just

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say, you know, we have very low churn because a product like this probably would have low churn.

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So let's just say like 10% churn for, and it's not very low for physical, but just

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limited at that 10% churn. That means that every month, I would sign up 500 and then I'd lose 10%

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and so this business would keep growing with that level of traffic until we reached 5,000 users,

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because it's 500 divided by 10%, which is the churn, which is the number of maxed out users at

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a hypothetical max for your equilibrium between number of sign ups and number of cancellations.

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And so I would be at 5,000 users a month, and if my price point was $20, then I would be making

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$100,000 a month from the no strips. My cost to ship the no strips would probably be in the

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neighborhood of like $4. Maybe less, maybe like two and a half, it depends on like the three

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P all that we would use. So I'd probably make like, let's just say safely, even after the cost of

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the all the no strips, which is minimal, let's just say we make $16 gross margin on a $20 product,

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which is really good for physical products. So I would be making $80,000 a month, so a million

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dollars a year in profit from the no strips. And so that's a breakdown of how that would work if

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I were to launch it. And then I would probably send no strips that had the word. And so what I would

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really want to do is build the capacity to make the words easy to print on there so we could have

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people put their own custom word in. So it's a you can choose from one of my five words. But if you

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want to put your own word in, it's $30. And I get this huge premium, but it's worth it for a lot

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of people to have their own custom words. So that would be like a unique competitive mode. If we're

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talking about like what kind of modes can you build? If you just white label a glue thing from

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another country, someone else can do that too. But if you develop a manufacturing capacity that can

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like on demand, create the word that someone wants, you can literally 2X, 3X sometimes the price

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of the thing because it's a unique thing that other people have and the value is there for people.

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And so if people could pick the word that they could put on there as whatever word they wanted

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to work on that month or something like that, and they would get a text that would say, hey,

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what word do you want to work on this month? They text it back. It automatically goes into the system

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and then ships it right out to them. Then that would be a really interesting business model that

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would have huge enterprise value. So if you're curious, a business like that, and I would probably ship

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the no strips with two or three variations of influencers that I thought were words that their

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community's dug. So someone sends me Mosy Nation or someone sends me, you know, Mosy mobiles,

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or you know, S and me 500, right? Someone sends me those terms on a strip, then it's going to be

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something I'm going to be like, dude, this is dope. And then because I have such high gross margins,

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I could say, hey, man, I'll give you 40% of everything and you don't even have to build the business.

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So you can make 40% top line on all the revenue of this thing, which by the way, if you were

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taking, making your own business, if you ran 40% margins on your own, on your own audience,

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it's a great business anyways. And so they'd be like, it makes more sense for you to just work for

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me because of all the capacity I built. And that would be the influencer campaign. And so you think,

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for me, I was able to add a million dollars to the business. And then you add 100 influencers.

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Maybe they're not as big or they're not as no-strip centric like I am. But maybe if they did,

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I don't know, a tenth of the volume that I could do on average, then it's 10 times what I'm doing,

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which is 10 million dollars. And theirs was only 40% margin to me, right? Because I had to give them 40

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and there's 20 that was cost. Mind you stuff to run the business. But let's just keep it simple for

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now. So let's cut it that in half again. So I get another 20% from the 10x volume that I got from

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them. So now we're probably looking at a three or four million dollar EBITDA business that is recurring,

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that is not dependent on one single face that has very high gross margins so that they can go into

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new channels that has a unique and competitive mode that allows it to have a premium pricing,

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which I didn't even factor in like if we sold it for 40 rather than 20. And then the final

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piece is that what would this business be worth? So if we're doing four million in EBITDA for

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physical products business like this on 10 million top line or sorry, it would be more than that

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top line, this business would probably be worth somewhere in the 40 to 60 million dollar range.

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And so that is a mostly money business breakdown if I were to get into physical products what I would

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make and how I would make it to be a cool business.

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Hey, most of the nation quick break just to let you know that we've been starting to post on

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LinkedIn and want to connect with you. All right, so send me a connection request and

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note letting me know that you listen to the show and I will accept it. There's anyone you think

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that we should be connected with, tag them in one of my or Layless posts and I will give you

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all the love in the world. All right, so let's get back to the show.

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And if I was focusing on like a branding perspective of like what is this going to encompass,

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I would probably go after the entrepreneur community first because it's obviously

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community that I have access to and I think it afford or we would be willing to pay a premium

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price for better know strips that had the words on them. But I think the brand would actually be

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more of a personal development brand of like becoming the person you want to be with the daily

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actions and reminders of who you want to become. And so it's like you're literally tattooing

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this thing between your eyes to remind yourself of the person you're trying to become, the character

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you're trying to embody. And so I think that it would really be a very inspirational brand.

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And I would probably because I wanted to be mass market, I would show different walks of life

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and I would have them working on different problems. All right, so I start thinking

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entrepreneur because that's me, right? But also like if you have moms and their word is patience,

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right? Patience can apply to anyone but like or if you have a prisoner in the prison system who

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just gets out as the next con, it might be like forgiveness, you know what I mean? And so I think it's

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it could be a much wider brand if you focus on the deficiencies that people want to fill. And then

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I have to think it's some kind of sexy word for the for the brand name, but I mean, I don't know,

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I feel like it'd be something around like better, you know what I mean? Like better no strips or like

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be better, be better no strips. And then something that would that's like short and simple that people

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could understand and share. And I think that that could be something that people would get behind

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because you don't want it to be about mosey, right? You don't want it to be about you, you don't

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want it to be about the founder, you want it to be about the prospect and more specifically

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about the problem that we're solving and the person that we want to that they want to become

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and the promises that we're fulfilling. And so if you can help someone feel better about who they

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are, people will pay anything for that feeling. And so the wedge product is the idea that we are

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helping people breathe better, but the brand and the promise is that we're helping people be better.

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They buy us for the breathing, they stay for the betterment, they stay for the person that

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are going to become. And so that's kind of the the two-sided angle that a lot of brands can

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accomplish. And if you're thinking about building your own brand, it's like the fitness space is

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obviously a space I have a lot of experience in, but like people come for the bikini, they save

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for the community, right? I remember a buddy of mine was in the dating space, he said they come

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to get laid, but they stay for the confidence. And just for anyone who's feeling their their troll

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vibes come, the point is not the space I'm focusing on, the point is that people come for one thing

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and they stay for something else. And I'll tell you a story that changed my life. So I had a mentor

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and he told me this story and it's called the garlic in the ham. He said there's this little boy

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and he really wants a dog. So he begs his dad to get him a dog. So the you know after lots and

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lots of begging the dad says, Hey, if I get you a dog, you're going to have to be responsible for

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it. He's like, No, no, I understand. I'll walk it. I'll feed on everything. So the guy gets the

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kid a dog. And so dad's gone on work, whatever, right? And so the kids at home with his abuela,

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right? His grandma. And he sees one day that the dog has ticks. And he's like, Oh my god, I'm

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I haven't taken care of the dog. I should have been taken care of this. Like any ghost who's

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grandmother freaks out and he's like, What do I do? What do I do? And the grandmother calmly smiles.

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And she's like, Go feed the dog some garlic. He's like, you know, the smell will drive the

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ticks away and they'll go away. And so she, you know, breaks up a piece of garlic. She hands it to

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the kid. He goes in the other room. He tries to feed the dog the garlic. My dog's like, move it,

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you know, moving his face around. He doesn't want to eat it, right? If you ever tried to feed a

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dog something they don't want. So he goes back to the bear. And he's really just like, there's

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even more ticks now than there were before. Like, What do I do? Like, he's not eating the garlic.

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And she's like, Did you just try and feed him the garlic? He was like, Yeah, you tell me if you

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feed him the garlic. He's like, Mijo, it's like, you don't feed the dog the garlic. He's like,

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you got to wrap it in the ham. And so she gives them ham and he wraps it in the ham and he goes back

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to the dog. The dog eats the garlic few hours later. The ticks are gone. And so the moral of the

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story is that you have to give people what they want in order to give them what they need. The

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thing they come for is necessarily the thing they stay for. And if you're thinking about the

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customer journey and the customer experience you're trying to bring someone out, we have multiple

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transformations have to occur. We can solve the acute problem of what they're coming for today.

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But once we solve that problem, they're going to leave unless we have a broader journey that

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they're going to be on. And some of the best journeys are the journeys of becoming because they

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never had. And so if you can take someone on a journey of today, I'm going to solve this thing,

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but tomorrow we're going to become something else. Then they can stay with you again and again

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and again. And people will vote for brands that they believe in because it tells them the things

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that they want to believe about themselves. And so when they pay for the products that they

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have, they're really buying into the identity they want to associate with and want to be. And so

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when they do that, they can continue to pay over and over and over because it reminds them

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about who they are. And so when we're building brands, if I'm thinking through that,

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applying to physical product, applying to service, et cetera, that's what we want to build.