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I get asked all the time about these nose trips that I wear.

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I wear nose trips so that I don't snore at night.

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In this video I'm going to break down how I would launch a nose trip business

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if I were to launch one and how I would get it to be a 40 to 60 million dollar enterprise

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and how you can use the same thought process to apply to any physical products business

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or service business that you use to sell stuff to people that you don't know.

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A nose trip costs pennies to manufacture. You can sell them for a hundred times that price.

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So if it costs you two cents and you can sell for a buck you're making huge margins on the actual thing.

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The second thing is that it's sticky quite literally but also from a recurring standpoint.

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If you can improve how someone breathes they're going to buy it again and again and again.

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I could have auto ship built into it which should be nice and it makes it convenient for people.

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It's also something that doesn't require willpower to use.

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You don't have to remember to do it. Like the problem with supplements is that people have to remember

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to take them. Most people sleep every day. Most people don't work out every day.

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And so I'd rather associate a product with something that people are doing on a regular basis without

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willpower. It's the reason beauty products to me are more interesting.

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They have fitness products. Buy in large. I have deep product knowledge.

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I've used the ones that are like pieces. This is not a huge fan.

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Walk around within the morning and I take it out. I put it in my pocket and I leave it on my kitchen

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to take it out of bed to go get the thing. I like the disposable ones.

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And the things that I'll probably do to make it different as I focus a lot on the product.

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I would also probably try and tie in some sort of branding element.

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I would put like volume or persist or endure across the bridge of the nose.

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I'd like to have one that was clear that had the word.

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So the only thing you see is the word, which I think would be really cool.

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It has to stick all the way through. The different flavors of the

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nose trips would be the words that people are working on.

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And so I like having those constant daily subconscious reminders around things.

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They actually found in sales rooms that having a single word on the wall

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affected performance from the team even if it was just huge.

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So if you just have like one more on the wall,

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then everyone sees that as this daily reminder that they need to keep going.

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I would want my face to be the walking billboard for my eye.

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And I would have it spelled backwards so that in the mirror someone could see it

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and they could see it every day.

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And it would remind people of like a word that they're trying to focus on for a season.

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And so I'll give you a basic estimate of what I think would end up happening money-wise.

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Let's say that we retailed the product for, let's see what some strips go for real quick.

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So they currently sell for about 30 cents a strip.

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And I'd probably sell 30, 60, 90 packs.

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I would want to be a little bit premium.

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1999 would probably be a price point that I would look at.

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2499, I would split test the price points there.

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But it'd probably be in that range.

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My cost of goods would almost be entirely based on shipping costs that's associated.

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Cost to ship the nose strips would probably be in the neighborhood of like $4.

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Maybe like two and a half, it depends on like the 3PL that we would use.

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Even after the cost of all the nose strips, which is minimal,

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let's just say we make $16 of the gross margin on a $20 product.

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Which is really good for physical products.

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Five options on my upsell.

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One, three, six, 12.

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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.

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But let's do the math on how much money this would make.

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Let's say 10,000 people a month would go to a page if I said, hey, check this out.

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And if I did it consistently, it probably would be about 10,000 people a month, just clicks.

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And then we converted 5% of traffic on that page, 500 buyers.

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Let's just keep it at the monthly rather than getting in the average bundles.

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10% turn.

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And it's not very low for physical, but just deleted at that.

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Every month, I would sign up 500 and then I'd lose 10%.

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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 turn.

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Which is the number of maxed out users at a hypothetical max for your equilibrium

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between number of signups and number of cancellations.

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I would be at 5,000 users a month.

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Price point was $20, $100,000 a month, $80,000 a month.

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So a million dollars a year in profit from the no strips.

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And if I was focusing on like a branding perspective,

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I would probably go after the entrepreneur community first,

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because it's obviously community that I have access to.

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The brand would actually be more of a personal development brand of like

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becoming the person you want to be with the daily actions and reminders of who you want to become.

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Because I'd want it to be mass market.

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I would show different walks of life working on different problems.

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Moms and their word is patience.

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Patience can apply to anyone.

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But like a prisoner who just gets out as an ex-con,

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it might be like forgiveness.

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

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And then I have to think of some kind of sexy word for the brand name.

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I don't know.

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I feel like it'd be something around like better.

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Be better nose trips.

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Short and simple that people could understand and share.

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You want it to be about the prospect and more specifically about the problem that we're solving

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and the person that they want to become and the promises that we're fulfilling.

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If you can help someone, feel better about who they are.

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People will pay anything for that feeling.

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And so the wedge product is the idea that we are helping people breathe better.

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But the brand and the promise is that we're helping people be better.

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What I would really want to do is build the capacity to make the words easy to print on there.

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So we could have people put their own custom word in.

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So you can choose from one of my five words.

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But if you want to put your own word in, it's $30.

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And I get this huge premium.

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But it's worth it for a lot of people to have their own custom word.

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So that would be like a unique competitive mode.

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If you develop a manufacturing capacity that can like on demand, create the word that someone wants,

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you can literally 2x, 3x, sometimes the price of the thing,

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because value is there for people.

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And they would get a text that would say, hey, what word do you want to work on this month?

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They text it back.

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It automatically goes into the system and then ships it right out to them.

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And I would probably ship nose trips with two or three variations of influencers that I thought

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were words that their community is dug.

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So someone sends me Mosy Nation or someone sends me SNM 500.

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If someone sends me those terms on a strip, I'm going to be like,

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dude, this is dope.

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And then because I have such high gross margins, I could say, hey, man, I'll give you 40%.

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By the way, if you're making your own business, if you ran 40% margin on your own audience,

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it's a great business anyways.

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For me, I was able to add a million dollars to business.

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And then you add 100 influencers.

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Maybe they're not as big or they're not as nose trip centric like I am.

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But maybe if they did a 10th of the volume that I could do on average,

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it's 10 times what I'm doing, which is 10 million dollars.

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There's only 40% margin to me because I had to give them 40 and there's 20 that was cost.

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So let's cut that in half again.

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So I get another 20% from the 10x volume that I get from them.

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Mind you stuff to run the business.

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But let's just keep it simple for now.

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So now we're probably looking at a three or four million dollar EBITDA business.

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That is recurring, not dependent on one single face.

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Very high gross margins so that they can go into new channels.

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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.

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That would be a really interesting business model that would have huge enterprise guys.

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If you're curious, the final piece is that what would this business be worth?

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If we're doing four million EBITDA for physical products business like this,

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this business would probably be worth somewhere in the 40 to 60 million dollar.