Brutally Honest Advice For Mental Toughness | Hormozi Hotline

All right,

this is nice.

We get to spend some time together.

All right, Sterling, what's up, man?

Salutations

Rashank or Riz Hank

Clarissa salutations Kday what's going

on Raj Max subrat Andrew Nicholas School

of Peptides all right Brave Aim Muzl

Dimitar Dimitar is a strong name I like

that name a lot Frank Alexandrew

interesting haven't seen that that's a

first um yeah So, we're going to do, let

me give you the agenda,

the agenda for today. Um, this will be a

a longer live stream. Um, I'm going to

go through three phases today. Phase

one, I I gave a a talk here in person on

mental toughness. Um, and it got a lot

of really positive feedback and a lot of

people were like, "Wow, I'd never

thought about like this." And so I

actually decided to make a slide

presentation so there was way more

visuals and I think it'll make it like

way more real. And this has been super

valuable for me um to quantify mental

toughness via the lens of behavior. Um

because I think it takes this very

amorphous topic and turns it into

something that you can actually work on

yourself for. Um and I'll do my best to

talk slower. Um, beyond that, uh, second

thing is I want to talk about one of the

big fallacies that I'm consistently

seeing in, uh, business owners like in

comments and chat, especially, um,

what's happening kind of like right now.

And so I'll talk about how to overcome

that. And I think it's what's keeping a

lot of you guys significantly smaller

than you should be um, physically. I'm

kidding. Um, but business-wise. So those

will be the two two big topics I'm hit

on, and then I'm gonna open up for Q&A

and, uh, we'll go live. Well, I guess we

are live. So, yeah, that's what we're

going to do. All right,

you guys ready to rock and roll? Give me

some uh give me some W's in the chat and

then we'll kick this puppy off. All

right,

cow guy. All right, Anthony. W's in the

chat and we're kicking. All right, here

we go. Let's rock and roll. So,

let me get my YouTube intro and then uh

and then we'll rock this thing.

You aren't where you want to be in life

because you can't withstand the hard

times and hard things that happen to you

and it takes you too long to recover.

You fall too far when it happens. Too

few things can disturb you. And then

finally, when you do recover, you're

worse than you were when you started.

I'm Alexi. I own acquisition.com. It's a

pro of companies that makes lots of

money. But today, I want to talk about

something that I think is key to

entrepreneurship and even just being a

human being who gets what they want out

of life. And it's a topic that I think a

lot about, which is one that's called

mental toughness. And so I made this for

you guys. So what is mental toughness?

It's the chance a bad thing changes how

you act in a way that's against your

goals. That way we can take this big

amorphous word, be like, what does it

actually mean? It just means the

percentage likelihood that when

something bad happens, you change the

way you act in a way that's not ideal.

That means that mental toughness is no

longer a do you have mental toughness or

not, but instead it's how much mental

toughness do you have? And so for

example, lots of mental toughness would

be a low likelihood or a low chance of a

negative impact on your behavior. As in

like um

well rather high mental toughness,

sorry, low mental toughness would be a

high likelihood of negative impact on

your behavior. I don't think there's a

little little typo here, but that's

okay. Um, fundamentally what we're

trying to get into is how people respond

to bad things. All right? And so once we

have it defined, which is that the

chance a bad thing happens to you, then

we have to create an environment in

which mental toughness can be exercised

and then ideally measured, right? And

when we do that, I can give you a visual

so that you can start thinking about

your own behavior within this context.

So I drew this out, which is how we act

when bad stuff happens. So, let me walk

you through each of these numbered

little pieces here. So, number one here,

hopefully it's to the right of me,

that's how you normally behave. So,

whatever your normal kind of baseline

is, that's how you act every single day.

Then, at some point, a bad thing or

enough bad things happen that it forces

you to change how you behave. That's

step two. Step three is okay, once I've

changed how I behave, how low do I go or

how upset do I get? Right? Number three,

then there's a certain period of time

that elapses where you continue this bad

behavior and then you start coming up.

You start recovering. That's the next

period which is number four. Number five

is going to be birectional. Either you

get better as a result of this hard

thing or you get worse. And then number

six, the last one there is how much

better did you get or how much worse did

you get? And so this gives us kind of a

framework to think through mental

toughness, not as this like amorphous

like rah rah rah like beat your chest

like alpha masculinity thing, but really

just how resilient are you as a human

being. All right. And to be clear when I

say bad for the rest of our time or

really when you hear me say bad in

general, I just mean against your

preferences. There's something that

happened that you wish didn't happen and

that was that's what makes it bad for

our definition. Okay? And so people

mistakenly believe that mental toughness

is one thing. And looking at the model

that I just walked through, I believe

that it's actually four separate

components that make up mental toughness

overall. So number one is tolerance,

number two is fortitude, number three is

resilience, and number four is

adaptability.

And so when we draw these out and we

look at these visually, we have them

looking like this. So each of these is a

measured point in kind of this behavior

uh frame. And so let's dive into all

four. All right. So the first component

of mental toughness in my model is

tolerance. And to be clear, I don't

think these words matter as much as the

thing that they're measuring. All right.

So the definitions matter far more than

the label I'm ascribing to it. So your

tolerance, which is this first part

here, this is how much hardship, the

number of hardships or how long you can

endure hardship. I keep want to say

hardship. hard [ __ ] before you have a

change in behavior. All right? How much

tough stuff can you go through before

you crack? All right, before you snap,

right? And so if you're somebody who has

a long fuse, aka it takes a lot to rock

your boat, you have high tolerance,

right? It takes a lot of stuff for

before you just say like screw it,

right? Whatever that moment is, that is

your tolerance. How long that fuse is.

And so as I'm going through these, I

would love you to think for yourself

like, okay, am I high do I have high

tolerance? Do I have medium tolerance?

Do I have low tolerance? Because none of

us is perfect. And so we can always if

we if we can start measuring the

components of mental toughness for our

own behavior, it means we begin the the

process of being able to improve it,

right? So high tolerance is that first

period. It's that first the the first

kiss of hardship until eventually you

crack. How long that fuse is, that is

your tolerance.

So, like I said, short fuse, anything

can set you off and you demonstrate low

tolerance in that situation compared to

the first example. So, it's not um so

fundamentally it would mean that it

doesn't take a lot to set you off. Now,

a long fuse on the other hand versus

short fuse would look like this. So,

here's my visual example for you.

You guys pulling this in? So, super long

fuse, high tolerance, super short fuse,

low tolerance. That's thing one. Okay.

So, and I want to be very clear about

this. Tolerance is not about ignoring

pain, but about how long you maintain

your intended behavior before

disruption. As in, how long do you act

normally before you stop acting

normally? Now, you can deal with pain.

Now, one of the really uh I don't know

if you guys have seen this, there's a

there's an Instagram channel. Well,

there's tons of channels that talk have

like animals in the wild. It's like when

you see that deer that's walking around

normally like eating grass with its guts

like spilled out or you see that that

lion or whatever that has like porcupine

needles in it and it's just like walking

along like nothing's bothering. Of

course, it's in pain. But the question

is how long can you maintain your

behavior? How long do you act normally

before you stop acting normally? Now the

second element here is fortitude. All

right, it's the intensity of behavior

change once your tolerance threshold has

been surpassed. Let me translate that.

So, it's how much you change how you act

once you've had enough hard stuff that

you snap. How low do you go? How upset

do you get? All right. That's what you

have to think with.

Mic is cracking. That's what I'm getting

in the uh We're good.

>> We fixed it.

>> We fixed it. All right. There we go. So,

the way to think about fortitude, do you

take a deep breath, walk outside for

five minutes, and then you come back?

If so, then you have high fortitude. All

right? So, you have very small change in

behavior after you crack. So, even

though you crack, it's not like you

didn't like, you know, well, I'll show

you what I'll show you what low

fortitude looks like. So, or do you like

something bad happens? This would be a

low fortitude example. Do you quit your

job, get divorced, and get into hard

drugs?

Right? Look at the difference between

these two things. So, if you have low

fortitude compared to the high fortitude

example, you have a way steeper drop, a

way larger change in behavior as a

result. We lost your mic again. This is

This is dog [ __ ]

We're still good though. Static is gone.

Mic is disconnected and died.

Can still hear me though. Okay. So, what

are we What are we doing here? What's

going on?

Are we all right?

Can people hear? Can you guys hear? Yes.

All right. All right. We're good. Mic

has echo. All right. I don't know what

to tell you. You're testing my fortitude

right now. Technically, you'd be testing

my tolerance right now. Um, I'm back

100%. It's just echoey.

Okay,

great. Rock and roll. So, hopefully you

can see the two visual next to me. low

fortitude, very small change in

behavior. High uh sorry, very large

change of behavior. High fortitude, very

small change in behavior. You've got

you've got uh it doesn't once you do

snap, you don't really snap. You just

say, "You know what? Maybe I'm down for

a couple days. Maybe I'm down for a

minute or two. Maybe I get upset when my

wife says something." And you think,

"Okay." And then you're back, right?

That is high fortitude.

So that's the first two. So we have our

tolerance. How long does it take us

before we snap? how much hard stuff can

we go through? The second is how how

upset do we get? How low do we go, which

is going to be our fortitude. And the

third is resilience. And this one's a

really interesting one. And I I I want

to like if there's one of these that I

think is one of the most workable for

many of you and also probably the one

that I would encourage you to work on

the most if you don't have what you want

in life, it would be this one. I mean,

tolerance is amazing too, but I would

say like maybe tolerance and resilience

together, but let me explain. So

resilience is after I'll give you the

formal definition, then I'll give you

the third grade definition. So after a

change in behavior has occurred from a

bad thing, how long it takes you to

return to a new baseline. So once bad

[ __ ] happens to you and you start acting

out, how long does it take you to stop

acting out? That's what resilience is.

It's a measure of time.

So do you bounce back in five minutes?

You take a couple breaths, you walk

outside, you come back in, you're good

to go, right? If so, you have high

resilience.

So, even if it's now, mind you, even if

it's really steep, even if you like go

crazy, but then you come back real fast,

you still have high resilience. You

might have low fortitude, but you have

high resilience. You're back. All right?

Or does it take you five years to bounce

back

compared to the five-minute person? You

have low resilience. Look how long it

takes you to to come back to normal. And

so as you're thinking through this, I

would encourage you one, you can think

about yourself, but also like who are

the people in your lives who are like,

man, something throws so and so off and

it's like they're in a funk for like

months. That person is low resilience,

right? If you have high resilience,

what's interesting about it is that like

even if something rock completely rocks

you, you can come back and it doesn't

massively affect your life because

you're like, I'm I'm already back. I

already recovered, right? And so that's

the third component. And we're going to

talk about more examples of all these

put together and the in and the mixes of

these things for different types of

mental toughness in a second, but I want

to define the terms. The fourth of

these, and this is the final component

of mental toughness, is adaptability.

So, how your new baseline compares to

your old baseline as a result of this

hard thing. Are you better for it or are

you worse for it? And so, did the bad

thing cause you to permanently change

your behavior in a bad way? All right.

Are you permanently worse or are you the

same as you were before? That would be

kind of a neutral adaptability, kind of

medium. All right. So, if you stabilize

after a bad thing happens, which you

will eventually at a higher new

baseline, then you have high

adaptability.

You let the hard times beat the strength

into you, not out of you.

If you stabilize to your former baseline

after a bad thing happens, you have

medium ad adaptability. So, you're

acting normally, bad thing happens, you

come back and you're back to the way you

were. You have med medium adaptability.

You didn't let it affect you. Fine.

Great.

Now, the last version of this is that

you stabilize below your former baseline

after a bad thing happens. And I'm going

to talk I'm going to talk about this for

a minute because this is going to affect

more than one of you and certainly

somebody you know.

If that happens to you, it means that

you have low adaptability.

It means the hard time beat the strength

out of you.

So in this little visual here, you can

kind of see the three versions of this.

Either you adapt above, you got stronger

from it, you stay the same as you were

before, you didn't let it affect you, or

you're permanently worse off as a result

of the bad thing that happened.

And so if the new baseline changes in

either direction, positive or negative,

then the experience traumatized you. And

I want to use the the actual definition

of trauma here. All right? Rather than

the social media influencer, uh,

fufu, whatever. All right. The actual

definition here is that you have a

permanent change of behavior as a result

of an aversive stimulus. And I'll

translate that in a second. All right.

So that means that you changed how you

acted from something bad that happened

to you. So just think about that. So

whenever you hear people be like, "Ah,

she traumatized me." I would then

respond, "In what way did you change

your behavior as a result of the bad

thing?" And if someone doesn't have an

answer, it's like, "No, she just did a

bad thing." But guess what? You showed

resilience. You showed fortitude. And

you showed adaptability. So it didn't

actually permanently change your

behavior. Now I'm going to give you an

example of trauma bad thing that creates

a positive change in behavior. Is it

still trauma? By my definition, yes. But

was the trauma bad? Ah, interesting. So

let's dive in. So if the behavior change

is positive, then it means you got

better from a traumatic experience. That

seems antithetical or against what more

most people would say about trauma.

Trauma only makes you worse, right? It

happens to you. you're a victim, right?

What if it happens for you and you get

better for it right

now? If it's against your long-term

goals, then you got worse from it.

That's how we would that's how we think

through this. If you some bad thing

happens to you and then you have this

goal of who you want to become, how you

want to behave, where you want to go,

but you it becomes less likely that

occurs. It traumatized you. It did. And

you had low adaptability. You got worse

from it.

Now, I want to be clear here. Both

outcomes mean you were traumatized. You

had a permanent change of behavior from

a bad thing. You learned to do something

different going forward. And so people

who take my words out of context make it

seem like I justify trauma when it

couldn't be further from the truth.

Right? I hope no one has bad things

happen to them. Right? Um but I see bad

things, things happening against our

preferences as a fact of life.

The only thing we have is our response

to those bad things. And so at one

extreme, you have someone who has maxed

out stats of mental toughness. All four,

right? They are perfectly mental

mentally tough. So how does this ideal

person behave when something bad

happens? They have huge tolerance. So

almost nothing bothers them, right? High

tolerance, super long fuse.

If something does bother them, then

their behavior change is so small, it's

imperceptible, it's unnoticeable. No one

can even notice that they're acting any

different.

And then they recover immediately

because they have high they have high

resilience. So even that that tiny

imperceptible change and then boom,

they're back within a second. They came

back high resilience.

And then not only that, they use that

experience, that bad thing to get

better. So they have high adaptability.

And so the end result of that is someone

who just keeps getting better. They just

keep getting stronger. They just keep

improving. And life happens for them,

not to them.

Real.

And the real world result of this that

it takes very little to throw them off

their game. A tiny on the on the other

hand,

if somebody has let's let's imagine an

imperfect person. All right? Let's

somebody who's zero out of 10 mental

toughness. They're a mental a mental

weenie. They're a little ninny. All

right, some of you know these people as

well. Some of you may be these people.

All right, and so for you, it may take

almost nothing to throw you off your

game. Maybe it's bad weather. Maybe you

got a little bit little bit of traffic.

Maybe the Wi-Fi is slow today, right?

Maybe someone wrote a mean comment or

maybe your your your post didn't get as

many likes as you want, right? Somebody

didn't buy and you thought they should

have, right? Someone someone just calls

you a bad name, right? They say, "You

live your life in a way that I would not

prefer." And you say, "Oh gosh, gee

whiz, what will I do now?" Right? And so

it takes very little to throw you off

your game. A tiny inconvenience sends

you spiraling.

Low tolerance. Think weeny tolerance.

Itty bitty bitty bitty tolerance. All

right.

Now, the next element of this mental

weenie is that not only does it take

almost nothing to throw them off their

game, they drastically change their

behavior. All right. They go super deep.

They massively change how they behave as

a result of this tiny little thing.

Right. Again, we're thinking about a

weenie here.

I probably should stop saying that

ninny. We'll keep with ninny. All right.

And then, and here's where it gets

nasty. This is the third point of their

mental nittiness. All right. Is that

once they've massively changed their

behavior, they stay down for a long

time. And this is what that would look

like. It takes them a super long time to

restabilize their their behavior. Like

that tiny little Wi-Fi being so that

tiny little comment that someone said

forever. They just keep it just keeps

bothering them. Keeps bothering keep

replaying it in their head. They said

this thing at this party and they think

people laughed at them and they just

keep replaying it. Right?

And not only that, when they finally

stabilize, this is the fourth element,

right? When they finally stabilize at

this new lower baseline,

they now are permanently worse as a

result. So almost nothing threw them

off. As soon as they do get thrown off,

it's super deep in terms of their change

in behavior. It takes them forever to

recover and then by the time they do

recover their recovery is worse than

they were before. And you have met these

people. I have met these people. This is

the person who gets broken up with,

gains 50 pounds, loses their job and

gets addicted to drugs

and key point, never recovers.

And so life occurs and they simply get

worse over and over and over again.

Every time something happens, they spin

out. They change their behavior, and

then they're permanently worse. They're

less likely to achieve the goals they

have in their life, whatever those goals

are.

Life happens to them, not for them.

And so, of course, people in the real

world like you and me, right, we sit

somewhere between these two extremes,

between maxed out stats and ninism.

And so, you might have someone, for

example, with a long fuse, right? But

when they snap, they really snap. So

this is someone who has high mental

tolerance but low fortitude.

And so and if they were to stay upset

for weeks, then they would have low

resiliency, but maybe they come back to

baseline again. And that way if they had

come back to baseline, they have medium

adaptability. So you've got someone with

high tolerance, low fortitude. Uh I

don't remember if I said they they they

take they come back quickly or not. Um

and then medium adaptability, right? So,

as we're thinking about this, like think

about how you'd relate yourself to each

of these four, right?

Now, let's give a different example.

Let's say someone um you know gets upset

really fast, right? It doesn't take a

lot. So, they have low tolerance. Uh

they have uh but so imagine somebody who

gets upset really quickly but like

barely changes their behavior. Okay? You

know, some of these people too like some

you know they're they're sensitive but

like they're they're back, right? They

they bounce back pretty quick, right?

So they would have high fortitude and

high resilience. So it doesn't change

their behavior much. And they and they

recover really quickly. Okay, doable.

And they have normal adaptability. So

you know these people, right? So it it

doesn't take much to set them off, but

they only change behavior a little bit

and they recover really quickly and then

they go back to normal, right? Well,

when you think about that, that's a

different kind of mental toughness um

makeup than the first example.

No, Richard. Trauma is not more complex.

People try to confuse each other and

listen to other people who confuse them.

Trauma is a permanent change of behavior

from an aversive stimulus. Something bad

happens in your life and you permanently

change the way you behave. Period.

Period.

Period.

I don't know what to tell you, bro. I

like I really want to help and that's

why I'm saying this. Like people like

people who believe that allow trauma to

permanently change their behavior in a

negative way and they get worse from it.

And God, I hope that no one has

traumatic things in their life. I hope

that nothing bad happens to you. But it

is a fact of life that bad things will

occur. And so the question is how you

behave as a result.

Real.

I want to help. I really do. This is why

I'm making this stuff for you guys. All

right. So

real world examples,

where was I? They barely change their

behavior. Okay, so this person, many

things bother them. They barely change

their behavior, but they get in a bad

mood. They cry maybe, but then they

recover.

Now, let's give a different example.

Maybe it's someone who has low

tolerance. Remember, they snap really

quickly. Uh high fortitudes, they they

they don't change their behavior much.

Uh low resilience, so it takes them a

long time to recover. So, think about

somebody who's like they it doesn't take

a lot. They change a little bit. So,

they're just like I don't know, they're

just a little bit in a funk. They're

they don't lose their job. They don't

lose their boyfriend. They're they're

just they're just like not as chipper,

right? They're just kind of maybe

they're cold shouldering or maybe

they're just like aloof. They just don't

like kind of glazed over. You guys know

like know somebody like this, right? And

then eventually after this very long

recovery process, they eventually get

back to where they were before. So, I'm

trying to describe different types of

behavior sets of what people do when bad

things happen.

So, get into funk easily, stay there for

a long time, but it doesn't ruin their

lives, right? They just stay below

baseline for months until they

eventually come back to normal. And so,

I see being able to describe the

components of mental toughness as the

first step to improving them in yourself

and others.

So just telling yourself or others to

toughen up, for example, doesn't help

anyone.

But giving them clear instructions that

they can use to change their behavior

over time can help them improve it. And

if you can improve it, it no longer

means mental toughness is a trait that

you're born with, but it's a skill you

can develop.

So if you have a short fuse, then you

need to practice not giving power to

something to ruin your day or ruin your

moment. Right? If you have a short fuse,

then that's the that's the that's the

behavior change that you have to think

to yourself. I'm not going to give power

to this person. I'm not going to let

this thing change my behavior, right? So

what I want to say here is like I'm not

saying don't be upset. That's not my

point at all. You just want to allow

yourself to be more upset about letting

something change your behavior than

about the thing itself.

So for example, I can't believe that

person said XYZ to me, right? Rather

than lashing out, you think, I don't

want to give them that level of control

over my behavior.

I want to be bigger than the pain.

Simply put, just continue to behave as

normal despite the fact that something

bad happened.

And so if you ever heard somebody who

says like bad things happened in threes,

right? Or you say like, you know, insult

led to injury or bad got to worse,

right? All of these things, then you

need to recognize as soon as your

behavior begins to change and not make

more bad decisions, right? You don't

want to have a bad decision snowball

and that becomes a very slippery slope

that we want to avoid as fast as

possible. The negative snowball, right?

And the only way you can do that is by

first recognizing that you diverted from

your normal behavior. You have to

recognize, you know what, I got in a bad

mood and I started acting differently.

Right? Now, you can be in a bad mood,

but if only you know and no one else

knows, great job. Right? You change your

behavior. Like, okay, what would I

normally say if I walk in the room when

I'm not in a bad mood? Okay. Well, then

why don't I say that even though I'm in

a bad mood?

Mental toughness.

And so for the second kind of character

trait that we're trying to improve,

right? Then rather than justify why it's

okay that you act it out, rather than

justify that it's okay that you behave

differently than you're normal, right?

Remind yourself of all the even worse

things that will happen as a result of

this continued slippery slope of

continuing to hack behave in a way that

is not u aligned with your goals. Right?

Because if you continue this course or

and the way that I think about this is

like what happened the last time I went

down this road. Remember that bad thing

that happened? Like I remember tons of

bad things that have happened when I

like when I act out too long too hard,

right? And I think that the more you

practice this, the fast you catch

yourself from spinning out. You're like,

"Okay, I just changed my behavior for

against my goals. Okay,

let me come back up." Right? Like as

soon as I can recognize it. And so on a

personal note for me, I think that this

one actually hurts the hurts the worst.

Hurts the most, right? Um trying to fix

fortitude because I have to admit that I

was too weak to control my behavior to

begin with. I have to admit that my

tolerance was not sufficiently strong to

to withstand whatever hardship I went

through that I did end up reaching past

my max my theoretical max of hard stuff

that I was able to to withstand that I

did change my behavior.

But at least once you recognize it,

right, you can give yourself the

opportunity to demonstrate strength. And

so that's the in some ways that's the

silver lining. When you do act out,

you're like, "Wow, this is actually an

opportunity for me to stop acting out

and demonstrate to myself that I have

higher fortitude than I thought I did."

And when you do that, you have the

strength to change it. And so this

action or this decision reverses the

momentum of the bad decision, of the bad

behavior that you did. And I say bad

again, against our preferences, against

the goals you have, right? and it begins

the ascent back to baseline.

And so if you realize that you've

already messed up, you snap back at your

girlfriend, you you said something mean

to an employee, um you said a snide

remark to your boss after something, you

know, pissed you off, whatever it is,

right? You realize that you messed up,

no matter how big or small, you just

focus on getting back to normal. What

would I do if I were not upset right

now? You act as if you were not upset.

You allow yourself to be upset but not

let the upsetness to change your

behavior.

So independent whether you like it or

not. That's the point. And so I want to

be clear here.

This does not invalidate your feelings.

It simply breaks the direct link between

how you feel and how you act. The goal

is to return to baseline as fast as

possible. And over time, you can act

like normal faster and faster until

eventually it's almost as if you were

never upset to begin with. Aka, your

behavior doesn't change at all.

And on a personal note, this is one that

I found one of the be one of the easier

ones to improve once it's like, okay, I

messed up. I've acted this way. How do I

jetack back to normal as fast as

possible? Right? So, as soon as you hit

your rock bottom, whatever that is for

you, of this upset period, you reverse

course hardcore, full 180, full throttle

forward, back to normal. All right?

Because then you get to say like, "It

only controls me as long as I allow it

to control my behavior."

And so, if you realize, now we're

getting into the last version of this.

If you realize that you are worse off

than you were before the bad thing

happened, we're getting into

adaptability, then you have low

adaptability, right? And now how do we

reverse this? The fourth component of

mental toughness. Then you have to ask

yourself, how can I let this bad thing

serve me?

In what universe would this bad thing

occurring actually be the beginning of

something better

real?

And so no matter how bad it is, our

moments of greatest growth typically

come after our biggest upsets. I don't

know about you guys, but for me, this

has solely been true. like a lot of my

greatest growth has come from like very,

you know, periods where, you know, my my

fortitude was tested. I I I acted worse

than I would like to. Um, and and then

at that point, you come back to a

baseline, but then you look back on the

whole experience and you're like, how

could this have served me? In what

universe would this actually be in a

story where the protagonist grows from

this?

So, I love this. I think I I heard this

first time on Joe Rogan, but I love the

frame, which is that if you were to wake

up, right, as the main character in a

movie, and you know that that movie has

a happy ending, and the character gets

passed up for the promotion, doesn't get

the girl, you know, the person they

cared about most dies, what would the

character in the story do to move the

plot along towards the happy ending,

right? As soon as you recognize it, what

would that character do? You do it.

And to be clear, guilt means that you

broke your own rules

and shame means you broke other people's

rules. And those things are only useful

after you had a bad behavior, right? As

long as they get you to change your

behavior for the better. Those two

emotions, which come as the result of

breaking your own rules or breaking

other people's rules, are effective for

changing behavior if you let them help

you change your behavior for the better.

You just simply feeling bad for the sake

of feeling bad and not changing your

behavior serves no one.

It serves no purpose.

So to be clear, I am not saying that

you're supposed to numb yourself at all

or not feel your feelings.

I'm stating that you not do not need to

act out your feelings. In other words,

just because you feel like [ __ ] doesn't

mean you need to act like [ __ ] treat

other people like [ __ ] or treat yourself

like [ __ ]

I think separating our feelings from how

we behave is a sign of maturity, which

has almost nothing to do with how old

you are, only how skilled.

And that means that you can work on it.

And if that's not a hopeful message, I

don't know what is.

That's my internet troll disclaimer.

So um hope you guys enjoyed that. I uh I

wrote that obviously in the lie of uh of

of my mom's my mom's death and I I

wanted to better understand

the feelings that I was going through

and the behavior change as a result and

I was thinking to myself like okay how

can I use this to make me better right

um how like how yeah how can I use this

to strengthen me how can I become better

as a result of this like no one wants to

think man my parent died how do I get

better from this like it feels like an

almost uncomfortable thought but if you

think about your parent dying or your

dog dying or you getting broken up with

or whatever the bad thing that happened

to you, right? Like what other frame

serves you? And do you think that that

person that let you down would want you

to be worse off?

No. I know for me, for sure not, right?

That person would want me to be better

from it. They wouldn't want me to be

permanently traumatized. They wouldn't

want me to be permanently changing my

behavior in a way that is antithetical

to my goals, is against my goals, makes

it less likely that I get what I want

out of life. Why would they want that

for me? Why would they want that for

you? Right? And so I think one of the

things that's very important for like

that I also had to break you know in

thinking through this is that how long I

mourn has nothing to do with how much I

loved period. If you get broken up with

if you're like man it takes half as long

to get over somebody as you were in a

relationship. You guys ever heard that

before? I've heard that. Right? And when

you think about that though, right?

Why?

You ever ask them that? Like someone's

like, "It takes half as long, you know,

that you're in a relationship to get

back to back, right? Like back up to

normal. Why?

Why? Who made that rule? Why can't I get

broken up with today and be better

immediately? Why not? Like what stops

me? What rule of physics prevents me

from behaving in a certain way?" Right?

And I want to be clear, there are there

are biological things that can affect

this. If you're low on sleep, if you

haven't eaten, um, if you um I think

there's two that that are coming top of

mind. Um, but like on the flip side,

it's like if you slept really well, you

uh you know, you have a full stomach,

like you are you are you are more

resilient, right? You have uh you are

rather you have more tolerance and you

have higher resiliency. All of your

mental toughness stats will go up when

you are biologically uh in a better um

situation. I only and I only say that

because they've measured this. People

are less tolerant when they haven't

slept. They're less tolerant when they

haven't eaten, right? And so I I don't

want to say that these things happen in

a vacuum. Absolutely not. But when the

bad thing happens, typically you don't

expect them and you have to deal with

the cards you're dealt, right? We have

to we have to take it within the fact

that maybe we didn't sleep that much the

night before or or we haven't eaten in

six hours, right? Or we just came off of

nine bad meetings in a row, whatever it

is, right? We still have that that

moment and Victor Franco talks about

this in Man's Search for Meaning is that

there's this this gap, this moment

between stimulus and reaction where we

have a choice. We get to act how we want

to behave. And I think that that is

where we get to live out our ideals. And

I think if there's anything that's

eternal about the human life, it's about

the values that we choose to live by.

And as someone who recently wrote a

eulogy about this, I find it I find it

interesting when I think about what

things we use to describe other human

beings at the end of their life to

summarize everything that happened. And

what's very interesting to me is that

the accomplishments that the person goes

through is about one to two sentences.

No one cares. No one cares if you were

the richest man in Babylon. No one cares

if you built a bunch of sky skyscrapers.

No one cares if you invented some new

social media app that then got sold for

a bill. Like imagine at the funeral,

this was John, man, he really knew how

to nail product market fit. No one would

say that. Even though it's something

that we dedicate a huge amount of our

time to. And what I did find that was

interesting is that there was two things

that that that persistently come up as

the things that people talk about, which

is number one, service. What do they do

for other people? And number two,

character, which I I see character

fundamentally as skills, but skills in

behavior on how we treat ourselves and

others, which you could maybe just say

are also service, right? But it's how

did they behave and what did they do as

a result of this this idealistic

behavior? And in thinking in unpacking

all this stuff while I was going through

it, hopefully you guys enjoyed this, by

the way. Um,

I it was it was super elucidating. It

was illuminating for me. It it it helped

me understand it better. And for those

of you who are curious like I write to

understand.

Um I think some people come at writing

from the perspective of like I want to

document all these things. And I think

there's a component to that. But trying

to take what you have in your head and

write it out will show you how many gaps

you have in your thinking. And it forces

you to learn because there's no hiding

from the words on a paper. Right?

there's the gaps in understanding become

very clear when you actually try to

explain it word by word in front of like

in front of your eyes rather than just

these amorphous thoughts that that kind

of swirl around your head. And so um

this was super super valuable. My uh I I

told Ila uh um I I I sent her the the

the thing that I wrote about this um and

uh she was like I think you might have a

non-business book in you. So, if you

guys would like a non-b businessiness

book, let me know because I haven't

started what my next book's going to be.

Um so

how how about do this, put a put a W in

the chat if you would want a book like

this and put a B in the chat if you'd

want a business book as my next book.

It's going to be it's an eitheror. So,

it's uh it's real. It's an eitheror. So,

uh I love what Steve said. No, thank you

for that. Just don't write another book,

please.

some B's and W's. Oh, some more W's and

B's. Interesting. Yeah, I mean, I've

always tried to stick more or less to

business. Um, but it I have I have a

hard time I'm having an increasingly

difficult time separating out um some of

these I would say behavior sets,

interpersonal skills, self skills um

from it because so many things in

business rely on you having this, right?

Like you could have the best business

strategy in the world, but if you have

low tolerance, if you have low

fortitude, if you have low resilience,

if you have low adaptability, you will

fail.

It doesn't matter. And what I find

interesting about this is that so many

people are looking for the latest tactic

when most of the time they can't execute

anything for a consistent period of time

because they get in their own way. They

allow the world to dictate how they act.

And that means that you are controlled

by the world. And I think that to a

large degree, many of us are. We're

certainly influenced by it. And we can

almost act as this tiny droplet of

defiance, this tiny droplet of agency of

like, what do I choose to do? I know all

these bad things happened, but what am I

going to do? And I think that there's a

certain amount of inner strength that

you experience or this feeling, maybe

peace if you want to call it that, where

you're like, I know I'm in a bad mood

right now. I know bad things have

happened to me, but I'm still going to

behave as though this person deserves my

respect. They deserve my love. They

deserve my appreciation. They deserve my

gratitude. And if I can get through this

day just today or even just this

conversation without them knowing that I

was off or that I was in a bad mood,

then that's a W. And I think when you

think that way, it's like you can take

it one at a time, just one W at a time.

And what happens is that as time passes,

as you give time time, one, that skill

reinforces, you get better and better at

it because you keep practicing it. But

on top of that, you start to develop a

reputation for being someone who's

unshakable, unmovable, who's consistent,

unbreakable. And then what happens is

people begin to reinforce that identity

with you. They start to tell you those

things. They start to tell, "Well, he's

dude, he's a rock, man. That guy, that

guy keeps going. That guy's, you know,

he's a maniac. He doesn't stop." Right?

People start to describe you this way,

and you start to believe it, and you

start to act in a way that confirms

their positive suspicions. the traits

that they choose to name you. They label

you. And so

that begins and kicks off the virtuous

cycle. But some of you guys right now

are are in that you're in that that

valley of despair, right? You had maybe

you had low tolerance, maybe you had

high tolerance, I don't know. And

something bad happened and you changed

the way you behaved and maybe you're in

the low low resilience. You're just like

you're just still kind of puttering

along. And I would encourage you that

one, like at the end of your life, the

only thing that people will talk about

is how you helped other people and how

you behaved. No one, like at my funeral,

no one will give a [ __ ] about how many

books I sold. No one will care. No one

will care about the business that we

built. No one ever the houses, the real

estate, the the the equity, and like no

one will care. No one will care. And so

I think the the idea of starting at the

end and working backwards is super

powerful. Um, and yeah, I appreciate you

guys. I wanted to to do that live with

you. Hope you enjoy that. Um,

business, but with some with some with

with some mindset uh uh uh built in. Um,

okay, sweet. So, uh, that was the the

the mental toughness one uh right now.

Um, I'm going to do a second video. So,

you guys want to see like what behind

the scenes of doing the uh the videos.

James, I think I might have to do like

instead of hundred million dollar

mentality, I might do mindset even

though I hate I think I hate the word

mindset so much that I might have to

write a book about it. Um, so many

things in my life have happened because

I like it's it's so funny. It's like I

had I had my gyms and I had six gyms and

like I didn't know many people who had

more gyms than me for most of the time

that I had my gyms. And people started

reaching out and asking me for help with

the gyms. And I told Ila,

no matter what, I was like, I never want

to become a gym guru. And then like at

the end of this whole life cycle, I

ended up becoming like the biggest gym

guru. Um, and so it's like I hate the

term mindset. I think it sucks. I think

people have all this mythology around

it. They're like, "These things get

stored in your body and and there's

these synchronicities and frequencies

and vibrations and manifestation." It's

like, dude, just define what you're

talking about. Like what are you saying?

And whenever whenever people say those

things, I'm going to I'm going to go a

little amorphous and I'm going to get

back to business. All right? So, don't

worry. Give it two minutes. Two minutes

and we're going to hit business again.

All right? As my last point, um,

when you begin to see language as

behavior, so let me explain what that

means. If I say hi,

then I'm soliciting a response from

someone. the the sound hi then they have

been reinforced for saying hi back or

what's up right and so what happens is

for example I'll give you a different

version of this if I begin to cry then

I'm going to solicit a certain type of

response from people around me and this

is where people start to create vicious

cycles let me give you an example of one

this is one that I realized with with

Ila my wife so I'll just be real with

you so if Ila cries in the earlier part

of our relationship well for many years

I'll be real with Many years when Ila

would cry, I would I would try and

comfort and if she was still crying, I

would stay quiet because I didn't know

what to do and she would still cry and

then I would get angry and then she

would stop crying. And so what ended up

happening is that I ended up being

reinforced for getting angry when she

was sad. And so when she would cry, I

would get angry and then she would stop

crying because I learned to get not not

consciously, right? But I learned to get

Ila to stop crying, get upset.

And so then Leila was like, "Well, I

don't want to be upset around you

because you only get angry with me." And

then I had to learn more about behavior.

And then I was like, "Oh, wow. I learned

the wrong lesson here." And I bring this

up to say that the words we say, often

times we don't even mean the words

because we've never defined the words,

but we say the words because of how

other people respond when we say them.

And so if you're in a community of

people for example that say

manifestation frequency

synchronicities, all this wild [ __ ]

right? You say these things, these

people agree with you and say you are

one of us. You are accepted. We love

you. Then of course you're going to

believe those words. You just haven't

defined them. But you love the reaction

you get when you say them. And so when

you see these words as behavior, you

begin to do that behavior more when good

things happen. And so this is why for

any of you, obviously you guys have, you

know, maybe you followed followed my

stuff for a little bit. Um, this is why

I take definitions so seriously. Like

words matter, like what are we talking

about? Right? Which is why the first

step of the three steps I have when I'm

breaking down any problem is what does

this mean? How do we know? And why does

it matter? And so I would encourage you

that's logic, evidence, utility, by the

way. What does it mean? How do you know?

Why does it matter? And so with that

being said, I said two minutes. Now

we're going to get back to business.

Cool. Rock and roll. Like it. All right.

Let's do it.

We now begin the next the next of our

YouTube's YouTuber videos.

I can never crack my knuckles. It like

freaks me out when I see people do it,

but I like for the moment I kind of want

to do it. Um, but imagine crack. Okay,

there's a single reason why most people

stay broke and most businesses stay

small. So, I've been in business for 14

years. I know portfolio companies,

acquisition.com, that last year did over

$250 million uh in aggregate revenue.

And the number one excuse that I hear

from entrepreneurs about why they

haven't grown is that their market is

saturated. It's too small. There's so

many people. It's over it's super

competitive. It's red ocean. Everyone

has these different terms. Like, I don't

want to start this thing because there's

so many people doing it. Here's what's

insane. 99% of people who say this are

completely wrong. And so unless you're

selling to 140 people in a rural town in

the middle of nowhere, your market is

probably a hundred or a thousand times

bigger than you think. And the average

entrepreneur has tapped into less than

1% of the actual market. And so there is

a massive gap between how you see your

market, how you perceive your market,

and how big it actually is. Once you

figure that out, you'll realize you've

been looking at your business through a

keyhole. when there's actually a massive

door in front of you that you can open

up and see what it truly is. And so what

I'm about to tell you completely change

how you see your business's potential is

total addressable market. And you'll see

why it's actually good to go into

saturated markets, why red oceans could

actually be an amazing opportunity for

you. And it starts with understanding

why this limiting belief exists to begin

with. Now, the reason this exists to

begin with, for the most part, in my

opinion, is that people want to protect

their egos. They say that their market

is too small and that's the reason they

haven't been able to scale. I can't

scale my ads past $1,000 a day because I

think I've saturated my market. No, bro.

You haven't saturated your market. You

haven't saturated Facebook. Your ads

suck. You don't know different levels of

awareness. You only know how to

advertise to an avatar that understands

the solution and product that you're

selling. As soon as you get above that,

there's a much larger market above that

that could actually buy your stuff. But

because you don't know how to advertise,

you're unable to reach it. And rather

than say, I do know not I do not know

how to advertise in a way that gets more

leads. I do not know how to to scale.

Um, instead you say the market is too

small.

Real. Now, I want to be clear here. If

you have a local business, it is

possible like my 140 person example. It

is possible that you're in a market that

literally there's there's 140 people in

your market and you're in the middle of

the Sahara Desert. Yeah, it's probably

not going to work, right? But most of

the time, even in local markets, if

you're in like an A, you know, or A

market or B market, there's a million

people in your city, there's 400,000

people in your city, there's if you need

200 to make business work, you are fine,

right? There's other things that are

holding you back. Now, if you're in

basically any other industry, which you

can look up from like Google industry

revenue, the likely that you have tapped

your market is it's almost impossible.

All right? And the thing is is that it

is still one of the most commonly stated

things um and least commonly true. And

so I'll tell you a quick story about

this and then I want to show you a

really powerful visual. So when I was uh

when I had gym launch, I wanted to start

doing outbound. Um rather I didn't want

to start doing outbound. I was convinced

to do outbound because of the story I'm

about to tell you. So, I had a

conversation with a guy who was a lead

sales rep. Um, it was we were going to

we're recruiting him in and I asked him

how they currently get leads at his

company and he was actually in the gym

business. I didn't find this out until I

got into the interview and he was

selling uh gym software, whatever. And I

asked them I asked him how much they

were doing a month and they were doing

um 10 million a month and I was like,

"Holy canoli, I've never even heard of

this business." And I said, 'Okay, well

then how are you getting all your leads?

He said, 'Oh, we just do outbound.' And

I was like, that's insane. I didn't know

outbound could generate that kind of

demand. But here was this company that I

had never heard of that at the time was

doing five times more revenue than I was

doing. And it broke a belief for me. So,

let me give you this this visual that I

think is super powerful for

understanding this. Let's imagine, can

you guys see my uh can they see? We're

good. Okay. So let's imagine that this

is 100% of the pie. This is the entirety

of uh you know like the market, right?

So if you had 100% access to the market,

you'd be super happy. Now this is what

happens in people's minds

when a competitor comes in. So you say,

"Oh my god, there's them and there's me.

Oh, I guess I will be medium happy about

this situation."

And then let's say you have

two more competitors

that come in.

Now you're very sad because you're like,

"Wait, I used to have this whole pie.

Now I only have a quarter of the pie."

This is false. This belief set will keep

you poor or at least poorer than you

would otherwise be if you adopted a

different perspective. So you currently

advertise in one way using one specific

platform and one specific medium on that

platform. And so this little this little

red let's red slice of pie here, right?

What is it in in actuality? Well, let me

show you.

This is what that little slice of pie

looks like.

When we actually consider the size of

the market and the aggregate attention

that exists, it's so small you can

barely even see that it's happening. And

this could be just all the different

platforms on which content, let's say

content is how you get your customers.

This is maybe this is Instagram, this is

Facebook, this is Tik Tok, this is uh

YouTube, this is X, this is radio,

right? This is TV, this is tabula,

this is Google search, uh like this is

direct mail, this is email, right? Like

you can keep going. This is school,

right? all of these and you're here and

you're saying, "Hey, I think I think

I've cut my market into like there's

only there's only uh I only have a

quarter of the market that's available

to me." But wait, there's more.

We still have our ads circles, which

you're currently doing nothing with.

Just imagine all these circles fill up.

Go as fast as I can. All right. And then

wait, but wait, there's more.

Now we have our our our outreach

and on here we could do direct mail. We

could do DMs. We could do DMs on

Facebook. We could do DMs on LinkedIn.

We could do DMs on Tik Tok. We could do

DMs on uh we could do phone calls. We

could do um every single way that you

can contact another human being

one-on-one is the different ways that

you could outreach. And so when we look

at this whole thing, you had two

competitors or three competitors, one,

two, and three, that came into your

marketplace and you said, "Oh,

therefore, this is now super crowded."

But the reality is that you're this tiny

little sliver of this one way that that

you get customers on this one tiny

platform. And I haven't even added in

the next layer of this, which is on that

one platform. Are you maximizing every

way to advertise on there? I make a

couple Instagram posts. Okay, cool. Are

you making stories? Are you making

images? Are you making carousels? Are

you doing all the different ways of

doing that? Oh, I make YouTube shorts.

Okay, great. Are you making YouTube

blogs? Are you doing YouTube community

posts? How many of them are you making?

Right? And

I told you that I wanted to to shift

this belief for a second. Um because

many of you are not being limited by

your market. Not even close to it. But

even if you were, and I want to make I

want to take the opposite perspective uh

for this for a moment. Let's imagine

that you're in the absolute biggest red

ocean, right? Red ocean being it's super

populated. There's blood in the water,

right?

Do you think the business advice niche

is populated? Do you think there's a lot

of red ocean in business advice?

Yeah probably.

Right. And so, should I have not gotten

into this?

The bloodier the water, it means the

more fish are there. And so where

there's the fiercest competition,

there's also oftentimes the biggest

rewards. Now that being said, how do we

merge this concept with the idea of you

should niche down? Wait, Alex, I thought

you wrote a book that said, "Hey, the

riches are in the niches." Right? So how

do we merge these two ideas? Let me

explain because I get questions about

this.

In the beginning, you want to

artificially constrain the pond that

you're going after so that you can

compete in a place where the sharks

aren't swimming. Okay? So, you want to

be the biggest guy in a puddle. That's

what you want to do. Biggest guy in a

puddle. And then you say, "You know

what? I'm going to go from a puddle to a

pond because I think I'm I'm too big for

this puddle." And so, you grow. And then

you go to the pond. And then once you go

from the pond, you say, "You know what?

I'm going to go to a lake. Now I'm in a

lake because I'm an even bigger fishy.

Right now I'm in a lake. And then

eventually you get to the point where

you say, you know what, I think that I'm

big enough to go into open class, open

market and fight in the ocean. Now, if

we were to look at this trajectory,

I started as a trainer

and I talked about nutrition and stuff

and then I talked about gym stuff

and then I started talking about

business stuff.

So, you're going to have evolutions

where you can get big enough for a pond

that you can move on from the pond to

the lake and the lake to the ocean. It's

just that it's directly correlated with

your skill and your experience. And so,

the reason that the the riches are in

the niches is that when you're there,

number one, you're competing against

fewer people. And so, the upside is

capped typically. Now, it's usually

capped at way higher than you think it

is, but it is capped to a degree. And

that's okay. But as a result, because we

are niched down, we're able to charge

niche prices which give us more profit,

more pricing power because there's fewer

people, there's fewer things to compare

you against, right? And so there does

come a time where you can go uh move the

market, right? Move your market rather

um to go after a different segment or a

broader segment. So let me walk walk

through what you can how to think

through this evolution for a business.

So let's say that your current business

is this little dot here. Okay,

there are five directions that we can

move with this dot. We can go. So let's

imagine this is a you've got a triangle

of a marketplace. Okay, so this is where

you this is where you inhabit. You can

go up market. All right. So for example,

um in my gym launch days, I could

instead of serving single location

fragmented gym owners, I could go to

franchisers, right? multilocation owners

and franchisers. So I have oneoff gyms

here. Now the next direction, so this is

direction number one I can do. Direction

number two is I can go down market which

would be that I could go after trainers.

There's way more trainers. They have way

less buying power, but there's a lot of

them. There's fewer franchisers than

there are gyms and there's fewer uh and

there's fewer gyms than there are

trainers. Pyramid, right? So that's the

second thing we can do. The next thing

we can do is we can go adjacent.

So instead of gyms, I say, you know

what? I think I can help Cyros.

That's what I think I'm going to do. I'm

going to take my systems and I'm going

to go into chiropractors. That' be an

adjacent market. I could also go

broader, right? Which would mean that I

would look at this way,

which means instead of gyms, maybe I

talk about health and wellness in

general. And so that means that I could

go after Cyros,

med spas,

anybody, you know, weight loss clinics.

Oops.

All of these things are now broader.

Or I can go

narrower. So instead of gyms, I say I'm

only going to work with spin studios.

I'm only going to work with dancing

studios. So this is our

fifth. This is our fourth. This is our

third. So that gives you five directions

that you can go in to change the

direction of the market that you choose

to play in. Now I outlined this and

what's interesting is that most people

who are especially smaller business

owners have never even defined this to

begin with and they pretty much just

accept people's money as long as they

have a pulse and a credit card. There's

obviously two requirements. Well, let's

say pulse is optional. As long as they

have a credit card. Kidding. um that

that uh that they accept. But the thing

is is that like you want to get really

really clear on this um because if you

don't your customers will be confused

because they won't know what you're

really about. Can you scroll up on my

notes?

So um keep going. Keep going. Keep

going.

Okay. So the tactics for you if you're

like all right

I am not getting because typically

people will say that they are in too

small of a market because they're not

getting as many leads as they want which

are two completely different issues

right and so if you can at least believe

believe dou you know believe the idea

that I have um that there is other ways

to get customers than you're currently

doing which I'll refer to back here

what you do is you say how do I make

content in more places, how do I make

more of it? How do I make it better? And

then eventually you say, how do I also

run ads? How do I also pair outreach

with that? And that is how you can

achieve omnipresence as a business. And

so you need to do more in more places,

even better, consistently for a long

period of time because it's unlikely

that you've actually capped the market.

You were just too unskilled to capture

the significantly larger percentage of

the pie.

And that's okay. And that's how we stay

in a niche for the short term and then

eventually as you get better you can

expand it and expand it and expand it

and you keep eating and that's all right

and totally normal. Now let's be now I

said at the very beginning if you're a

local market you can this can sometimes

bite you. So I want to give some of the

local guys which are usually like 35% of

people are listening to this. Um so I'm

going to go real quick for you guys what

you can actually do to expand how much

you can make with just a single

location. So number one is you can

expand your actual location. So that

means you knock down walls, you add

seats, uh you just increase efficiency.

Like how can I get more um from my

existing four walls? How to get more out

of it? Like for me um when I started

getting too crowded at my first gym, I

you know cut the class times from 45

minutes to 30 minutes. Um and by doing

that, I got you know one and a half

times more classes in. I cut out the

like breaks between classes. So again, I

could fit more people in. I could also

extend and open more hours. All of those

things expand your existing location.

The second thing that you can do is what

I just walked through, which is you add

more channels. So, okay, you're posting

on Instagram. Are you posting on X? Are

you posting on YouTube? Are you posting

on Facebook? Are you posting on TikTok?

Like, you expand channels.

And I would say that many of you guys

have heard my rule of uh one avatar, one

product, one channel until you get to a

million dollars a year. The only

exception to this is sometimes local

businesses. Now, if you're in, I would

say an A or B market, you can totally

just do that to get to to get to a

million dollar a year. If you're in like

a C or D market, so I would say I don't

know what the numbers are there, but I'm

assuming it's probably like less than

50,000 people in like a 10 mile radius

of where you're at. If you're at less

than 50, then you're going to probably

need to use more than one channel to get

customers because there's just there's

just not as many people. You have to you

have to saturate that tiny market by

getting in in front of more people in

more places. The third thing that you

can do is you open another location.

So you can expand the current one, you

can add channels to drive even more into

the current one, but at a certain point

you're going to max out your four walls.

Um, and so you just open a new spot. And

I see that as um the eventuality of most

these businesses. And I think this is

kind of interesting because a lot of

people feel like they're like, I don't

know if this is a $100 million

opportunity. It's like, well, yeah, your

one store isn't a $100 million

opportunity, but you being able to

duplicate and nail the model and then

scale the model absolutely is. And so

even if

I can I can almost promise you like,

sorry, I almost swallowed my gum.

If you have the goal of getting to $10

million a year, you can pretty much do

it in any business. If you have the goal

with with the exception of if you are a

brickandmortar and there's 100 people in

your in your local market, probably not.

But out outside of that, um that

business model, even if you were in a

tiny market, could get to 10 million a

year. You just open up in new markets.

That's all you do, right? Um and so most

people's goals are achievable within

their current vehicle. They were just

too impatient and believe that there's

another shiny object that someone will

get there faster. But if you take the

natural extreme and say, "If I only did

one thing for 40 years, do I think I'd

be successful?" Probably. And so if you

knew that to be true, then that would

give you a very strong reason to stick

with whatever you're doing. Because let

me give you a visual for this. This is

the cost of switching. So if let's say

that you're in year three

of your current current business, okay,

or current opportunity, it doesn't

really matter what it is. So this is

one, this is year two, this is year

three. Okay? Now, what people want to

convince themselves is that they're

like, I want to start this new thing.

Okay, that's fine. You want to start

this new thing. So let's say that year

one of this new thing is higher. Okay,

that's fine. This one is a little bit

higher than this one. on year two. But

the thing is is that this is year one of

this year,

but it's year four here.

You're still behind. And not only that,

growth when you get bigger is easier

than growth when you're smaller.

And you're like, "Okay, well maybe maybe

this faster rate of growth I'll be able

to catch up."

Okay, well now you're year two, but now

we're at year five over here, right? And

so the head start that you give yourself

by sticking with something like sticking

with it is how you get the head start.

It's how you keep the head start that

you already began. That's something that

I think so many people miss when they're

trying to go to this next opportunity.

Unless there is something inherently

wrong with the assumption that you have

and skill is not the deficiency that you

need to overcome, which it often is.

Most of the time, people get stuck on

things that I call features, not bugs.

And this isn't my invention, is that

there's an element of your business that

makes it hard. There's an element of

every business that makes it hard. But

that's what makes it a business, and

that's why you're compensated for it. If

you're in the cleaning business, the

difficulty you're going to have is

attracting and retaining high-quality

talent. If you're in the fitness

business, the difficulty is attracting

customers and customer retention because

people are inherently really shaky um

about staying with their fitness goals,

but they typically stick with their

cleaners for a really long time, right?

And so every business has elements that

make it shitty. It's just the name of

the game. And you know what? I'll give

you a different frame on this. So if you

were to think about different business

models. So let's think about I I doubt

many of you guys have heard this. So

this is pretty sweet. So, let's say that

you've got uh e-commerce,

you've got uh let's say you've got

service,

you've got um let's say info, education,

media, and let's say you've got SAS. All

right? So, software. Okay. So, let's say

that these are four different

opportunities. Each of these

opportunities has a different shape.

So, info looks like this.

starts really fast, very difficult to

scale. SAS is the opposite. Starts

really, really slow, scales really,

really fast.

Ecom is more like this. You can scale

fast, but there's difficulty with

typically cash flow because you have to

continue to buy more inventory. Uh you

have supply chain issues. You have to

switch suppliers, switch 3PL so they can

handle your volume. All of this stuff

happens as you continue to grow. So,

it's more like, hold on, it's more like

this.

That's the shape of ecom, right? And

then service businesses are more like

this,

the slowest, but they are steady. And so

when you see these four shapes,

many of you guys just hit the crappy

part of whatever the opportunity that

you're on is, and then say there's

something wrong with my business,

therefore I should stop. Rather than

seeing it as what it is, which is this

is just the nature of how this business

works. This is a feature, not a bug.

It's going to be harder for you to

attract really good talent in

engineering and build software and

you're probably going to be not

profitable because most software sells

for lower ticket most for a period of

time and it takes a long time to get a

product to actually be good. And so

you're going to basically burn money,

burn time for a long period and then

eventually you can scale to the moon but

it takes a long time sometimes years to

get there and a lot of people don't have

that level of tolerance.

Info on the other hand is kind of the

exact opposite of that. You can make a

lot of money really quickly, a lot being

relative, right? You're probably not

going to become a billionaire, but you

can make a million dollars and then very

quickly it gets very difficult to scale

it.

And I'll say like info specifically,

more like coaching, things like that.

And the reason for that is because

there's almost no no revenue retention.

People don't stay around. Once you learn

something, you learned it. That's why

people graduate school. They learned,

right? Service businesses, the issue is

people because it's a very people people

heavy business. You have to constantly

be hiring, onboarding, and training. And

it depends on the service you're

providing. If you provide weight loss

coaching service or weight loss

services, I use that as example

obviously because I came from that. You

you have you have it's easy for you to

get talent because lots of people want

to talk about fitness and weight loss

and and and food all day because they're

like really into it. So, it's actually

very easy to get good talent and for

below average prices because people

would do it for free. On the flip side,

customers never want to do it and so

they're canceling all the time. If I had

an accounting firm, it's the opposite.

Accounting firms have super high annual

stick. What's the difficulty with

accounting firms? Getting the people who

can do accounting. And it's almost

always this balance, right? If a lot of

people want to do it, there's going to

be a lot of competition. There's very

low barriers to entry. And as a result,

customers have lots of options and they

don't want to do it themselves. If uh

there aren't as many options and you

have a supply supply constrained

industry, then you're going to have

issues getting talent fundamentally. And

you can look at this at the business

level, but you can also look at the at

the at the uh at the industry level. And

so I talk about demand constraints and

supply constraints at the business

level, but you can see if you are way

off track based on do you match with

your industry. If your industry, and by

the way, if you are if you are the

inverse of your industry, you're usually

doing something either really wrong or

really right. Side note, so great way to

think about it. If you can be supply

demand constrained in like the cleaning

business example that I gave, if you

give supply constraints, sorry, demand

constraints as in I could take a h

100red times more customers than I

currently am with my cleaning thing.

Well, then you've either figured out

something really amazing with cleaners

to like attract them in and like you're

about to go hypers scale or you're just

starting out and you haven't done

anything yet. There's either something

really right or really wrong with what

you're doing. But most of the time, you

probably match the same constraint of

your industry. And the problem with not

being experienced is you think there's

something wrong. And so then you end up

spending multiple years not being allin

on your opportunity and then being upset

that it's not growing as fast as you

want it to grow when in reality you

never really gave it a shot because

you're always looking. You're kind of

like the kind of like the guy who's in

the marriage that they're like, you

know, they they were in love a while ago

and you know they're things are okay but

they you know he's got a wandering eye,

right? He's always looking. He's always

pay you know trying to look for the next

thing, the next girl, the next whatever.

And he's like, "Well, my marriage isn't

It's like, well, no [ __ ] You're

spending all your time looking at these

other opportunities rather than doubling

down on the thing you got.

And when you double down on the thing

you got, usually when you take the mar,

it takes way less time. I would, okay,

I'm not I'm not I'm not going to make

broad sweeping statements on marriages,

all right? But I will say that in my

experience, from my n equals one

marriage, it takes way less time to go

from like we're upset about something to

we're really good than it does to create

the loyalty, the trust, and the track

record that you have from that marriage

with someone else.

Real. So, um,

with that being said, let me go back to

my notes. I got to I got No, you're

good. Keep going. All good. Oh, no.

Other way. Other way. There you go.

Let's see what else. Keep going. Keep

going. Keep going. Keep going. Okay,

cool. So, um that was my that was my my

pist resistance, if you will. That was

the thing that I wanted to talk about

today that was top of mind is that so

many people think that their market is

actually limited when in reaction their

mind is limited. And there are so many

ways to advertise, but you do not have

the skill to advertise it. And so I'll

leave you with a really powerful

question that I think is worth asking

yourself uh when you're in these

situations is instead of saying there

are no good salespeople in my market or

no one can sell like I can sell or I you

know it's really crowded which really is

usually a translation for I can't get

enough leads or leads cost too much by

the way. Um, but you say these

statements, just frame it into a

statement that you control.

Meaning, I don't have the skill to get

more leads. I don't have the skill to

attract, hire, manage a good

salesperson. I don't have the skill to

get employees to behave in a way that is

according to the goals that I have in

the business. Those as soon as you state

it in that way, guess who owns the

outcome? You. You become source. you

become the one who can change it. And so

I would just like there it just does not

serve you to cast your power outside of

yourself and give that as the reason for

why you lack the success that you want.

And here's here's the crazy part. You

could be right

and so what?

Like some prizes aren't worth winning.

Like if you want to play the pity game

and you want to win the pity award for

for for person who was born with most

inconveniences or person who had the

worst things happen to them, you can win

that award. The question is just do you

want it?

Is that prize worth playing for? Is it

worth competing for? For me, when I see

when I hear or see a situation like

that, there's also something that I

think is the same power, if not more

powerful, which is this person was able

to win despite that. And that's a story

that only you can have. And the more

[ __ ] up your childhood, the more

[ __ ] up the the things that you went

through to get to where you are are,

the stronger that story is for the

people who follow behind you and look up

to you, the more you can serve as an

example for other people who have

suffered the same things that you've

suffered or suffered worse than you've

suffered.

And I think it's like you rob yourself

of that opportunity by protecting your

ego and saying that it was because of

this other thing. And maybe you're

right,

but wouldn't it be cooler to be right

about the fact that that was true and

and you won instead and you won anyways

and you succeeded despite that. I think

that's a much cooler story. And I think

that if we use if we use the story

frame, which is one of my favorite

razors, which is that when you're 85 and

you're and you're split between two

choices in life, pick the cooler story

because at the end of your life, it's

the only thing you're going to be left

with anyways. And when you have these

two choices, there's usually the the

hard thing uh which is the right thing

and the other way. And the reason that I

think you should always take the hard

thing is because if the easy thing were

the right thing, you wouldn't have had

to make this decision because you would

have already done it. And so you're only

hesitating because it's harder than you

expect.

So with that, appreciate you guys. Um

hopefully that was fun. This is how we

make YouTube videos. Um thought we'd

just do this for you guys. Uh Jinguan

Buu, I'm just going to say that that's

your name. Um, what if AI kills us all?

You won't know because you'll be dead.

And if it kills everyone, then all

status games are over. And as soon as

it's human against machine, we all lose.

And until then, it's going to be humans

using machines against humans using

machines, which is what it's been since

the dawn of time, except swap machines

for tech. But you get the idea. All

right, that being that being uh that

being said, we're going to do uh more

Mosy or Mosy hotline and uh we're going

to come in we're doing hot. You feeling

you feeling hot, Mr. Duke? Feeling hot

and heavy.

Cool. We got to do a different one. I

want a different a different headset.

This looks so boomer. Um

hold on. I'm getting a little I'm

getting a little toasty. I'm getting

toasty. I'm feeling that. Feeling that

heat. The heat's moving.

All right.

How much will this live be? I don't even

know what that means. All right. Let's

see here. I mean, I think it's free.

Ever consider going back to No.

All right.

That good. Am I good? I can't hear

anything.

What time is it?

>> Oh, we're doing great on time. Okay. Um,

yeah. You guys like that? All right. Um,

where's the fan for Alex? I know. I

should get a little fan little fan

action. Coming ever coming to South

America. South Africa. Dude, I haven't

even been to Africa,

let alone South Africa. I don't even

leave the US that much. How should I

scale my real estate business? Well,

maybe maybe we'll get to that. Um,

before I dive in, because I think I

think if we're lucky, Leila may end up

joining us. Um, so before I put this on,

I'm actually going to do something a

little before I before I take before I

take calls. I will take alls in a

second. Um, but I want to say one more

thing.

I before we hopped on, the chat was

frozen because we have this like screen

thing that I can see the chat, right?

Um, and there was like six chats from

the last time that were like frozen on

the screen. And one of the guys said,

um, I've got $1,000 and 800 old

contacts. what would you do if you were

me starting a real estate business?

And I

read that and I've basically been

thinking about it this entire time while

I've been making those two other videos.

And so I wanted to talk to it because it

kind of moved me a little bit.

What I want to like what I want to

explain is it's it's so [ __ ] hard.

And

when I say it, I'm saying Like when you

start out in business, it's unbelievably

hard.

And the reason that business owners at

the highest levels get compensated the

way they do is because they were able to

make it through that period. They earn

the right to earn above average. They

earn the right to earn more in a day

than people earn in their lifetimes.

And I think there's a sort of spiritual

strengthening, and that's probably words

you wouldn't normally say. So maybe I'll

use my behavior frame, which is that you

have to learn how to behave in hard

circumstances so that you can continue

to make it through the hardships that

will inevitably come as you grow. And

growth comes from a deficiency between

your current and desired or your current

and required. you need to be here and

you're here and that stretch hurts

because you're inadequate. You have to

look at yourself in the mirror and be

like, I'm not good enough. And they call

them growing pains for a reason. And so

if you're like, man, I wish I could grow

really fast, you're actually wishing for

a tremendous amount of pain for an

extended period of time. And then when

people don't have that, they hit their

first pain, they're somehow surprised

that it hurts. And the thing of the pain

of business is it's not just like this

this visceral physical pain. Of course,

you have those from time to time, but a

lot of the pain of being in business is

not knowing the [ __ ] you're doing and

feeling like an idiot. Being like, "Why

am I not good enough? Why do these other

people why are they doing so much better

than me?" Like, what what conclusions

can I drive derive from that? There's

only one of two paths. Either I have

something outside of my my control that

I can cast my blame to, or I have to

take the punch to my ego and say, "I'm

just not that good. That guy is better

cuz he's unethical." Okay, sure. if

that's what makes you feel better. And

now what?

And so the things that make it hard is

that one, you have to accept that you're

not good. And you have to do it over and

over and over again. Right? When you

think you're good again, you pro like

the world proves to you that you're not

as good as you think you are. And and

this happens at all levels of business.

And you get like the same thing is when

you have those plateaus. It's been a

year, it's been two years, it's been

three years, right? And you've been

stuck in this in this gear. Like it

means that you haven't changed. you've

behaved the same and so you're getting

the same outputs and the change is

painful. And sometimes the the painful

change means that you actually have to

take two steps back and your ego not

only has to get hurt but hurt even more

because you have to realize that you

built your thing wrong. You hired the

wrong leader. You have the wrong team

culture within a department. What do you

do? Well, you either leave it there and

stay stay perpetually under your

potential because you weren't willing to

confront the difficulty of the

inconveniences that are going to come to

you as a result of making the changes

that you know you need to make but

aren't making.

And so I I bring this up because like

everyone humans like we're so

interesting in that we believe that

we're the first people to ever love the

way you've loved to feel the pain that

you felt to feel ignorant. to feel

unwanted, to feel not enough. Like we

feel like we're the only people who

experience this. Like our our pain is

more than other people's. Our love is

deeper than other people's.

But when we do that, we rob ourselves of

the ability to learn from others that

came before us. The other people who

already learned what this is like,

who've described the pain. And listen,

even if you even if you try to take as

much advice as you possibly can, you're

still going to get burned. It's still

going to hurt. And in the earlier days,

like I have yet to see somebody who who

who takes again and I'm talking about

I'm talking about homo sapiens. I'm not

talking about Elon Musk. All right? I'm

not talking about Mark Zuckerberg, you

know? I'm not talking about Bezos. I'm

talking about homo sapiens. I'm talking

about flesh and blood, people who are

made of of the of of normal folks. All

right?

I have yet to see someone

really start figuring out what's going

on in less than five years. And I'm

saying five years of being in the game.

Not five years of I have an idea. I'm

really passionate about this. I've been

reading stuff on the side. I work on the

weekends. I'm saying I'm allin for five

years.

And you just start. You just begin to

get a grasp of what it takes to to be

good at business. And the difficulty is

that it's so hard to teach business in

school because it changes so much. The

principles remain the same, but the game

changes, right? And I'll say I'll say

one of my one of my favorite quotes from

the wire. Um, Cuddy, who is a uh, you

know, who was muscle for one of the

gangs, comes out after like doing a

murder hit taking a murder charge. Um,

anyway, gets out gets out, you know, 15

15 years later, whatever. Um, and he

goes back and he's right back on the

street and he went back to the gang and

he's like, "Man," he's talking to the

other, you know, the the other guy who's

muscle before they're about to go, you

know, shoot some guys or whatever. And

he says, he's like, "Man," he's like,

"The game changed." And Slim Charles

says back to him right as they're like

putting their gloves on about to like

[ __ ] their gun. He's like, "No, man."

He's like, "The game the same, just more

fierce."

And so it's like the level of game

always continues to rise because the

players get better. Business is an

infinite game. And I think that we judge

ourselves because we somehow believe

that we're behind other people. It's one

of the most painful things that we can

do is that we just obviously you compare

yourself and then after making the

comparison there's nothing wrong with

comparing yourself to other people.

That's how you figure out discrepancies.

But then you label then you say and I

suck as a result and I'm worthless and

I'm not never going to be good enough.

Right? But it's the first part is

valuable. That guy's better at ads than

me. What is he doing that I'm not doing?

I should learn that, right? Not that

guy's better than me at ads and

therefore I suck as a human being and

will never win. So what label do we

ascribe to that discrepancy?

And so if we see if we make that

comparison, right, then we can learn the

steps to get better. Fine. But if we

zoom all the way out and really think

about this because this is a little bit

trippy.

The game of business

has been going on since the dawn of

time. There were merchants in ancient

Egypt 5,000 years ago that were in the

game of business.

And the game of business will never end.

It's an infinite game. Who was the

number one merchant in Egypt 5,000 years

ago? No idea. Who was the number one

merchant 4,000, 2,000, 1,000 years ago,

200 years ago? No one knows. And so we

have this idea that we're somehow going

to become number one. But I'm like at

what? At net worth. And then eventually

your kids become trust fund kids and

then that gets divided up 10 more ways

because no one's got game like you. And

eventually you just you've got, you

know, eight family members on the Forbes

list. Okay. And none of them are the

ones that actually made it and none of

them know how to multiply because they

aren't in the game. They never learned

the skills of the game. Like if you see

the game as constant, only thing that

changes is the players.

So my mom used to say this thing which

was um and this I doubt this is her

quote but um

the news is always the same

only the names change.

So think about that. So you look at the

headlines, right? It's like bankers get

greedy.

Sounds does that sound like it sound

like new news? No, they just changed the

names. You know, jealous husband kills

wife then self.

Same same news. It's not even news. It's

just humans being human. And so business

news is also the same way. Hot new

technology comes out, grows really fast,

find out actually not good, crashes

quickly.

investors lose millions. This stuff is

the same. It's the same. Like boy learns

how to sell. Boy learns how to

advertise. Boy learns how to make

product. Boy eventually makes lots of

money. Boy eventually gets old. Tries

to, you know, give back to a certain

degree. Becomes a philanthropist. Old in

his age. Uh retreats a little bit. The

next kin comes in line. Not as good as

that person. Maintains. third generation

destroys.

It's just humans doing human [ __ ]

right? And so I say this because a lot

of the hardship of business is is

comparing yourself and labeling that

comparison and saying that I'm not

better or worse than these people, but

all the players on the board are going

to get swapped in a 100 years. All the

players, the whole board gets wiped. The

game still goes on, but the players

change.

And so I think like if you can, and it's

not easy. I want to be clear, it's not

easy. Humans, you know, we're we're

we're status driven beings. Um, and

that's kind of built into how we how we

uh how we procreate. Um, but to the

degree that you can, if you can, if you

can actually give yourself a pat on the

back, as long as you do one thing, which

is that you stay in the game,

you keep playing, you keep rolling the

dice.

You have my offers book. Can you Is that

Is that open? Is there an open on that

somewhere? Let's see if I can grab it.

Hold on. Oh, my leg. I did legs this

morning. Hold on.

I'll read this to you guys because I

think you guys Some of you guys may have

heard this, but some of you guys may not

have.

So, I'm going to read this to you

because I think it's cool.

Oh, you know what? I think it's my I

think it's the lead's book. I should

know. I'm the one who wrote the book,

right?

By the way, if you haven't read these

books, you should totally check them

out.

Where is it?

Anyone Do you know which one has the

dice the dice one in it? Is that the

offers book?

I think it's the offers book. The many

sided dice.

Where's the manysided dice?

Where's the many sided dice? Do you guys

know which book it is? It's the offer

book.

Where is it? I want to read this. It's

gonna It's gonna like It's gonna It's

gonna be perfect. It's perfect thing

that I want to keep saying here.

>> What is it?

>> It's leads.

I should know this, right? I wrote the

damn book. Here it is. Wow. I literally

turned to it. Hold. All right. Cameras

can confirm that. I literally turned to

it. Wow. Dude, it was me. Dude, this the

spirit's moving. The spirit's moving.

All right, so someone besides me wanted

you guys to hear this. So,

this is the story of the many sided die.

So, I wrote this. I didn't hear this.

This was just like a concept I wanted to

uh to share. So, imagine you and a

friend play a dice rolling game. You're

each given one die. One of the die has

20 sides, the other has 200. On each

die, only one side is green and the rest

are red. The point of the game is

simple. Roll green as many times as you

can.

The rule, sorry, the point of the game

is simple. The rules of the game are as

follows. You can't see how many sides

you have. You can only see if you roll

red or green. If you roll green, one of

your sides turns, your red sides turns

green, and you get to roll again. If you

roll red, nothing happens and you get to

roll again. The game ends when you stop

rolling. And if you stop rolling, you

lose. So what do you do? You roll.

When you roll red, you pick up the dye

and roll again. When others roll green,

you pick up your dye and roll again.

When you roll green, you pick up the dye

and roll again. You keep telling

yourself one thing. The more I roll, the

more greens I get. At first, you roll

green once in a while. But as more red

sides turn green, the green happens

more. With enough rolls, hitting green

becomes the rule rather than the

exception.

So what does your friend do? He rolls a

few times and hits red each time. He

sees you roll a green and complains that

you must have a die with fewer sides. He

reasons, "It's the only way you could

have rolled green before him. And

although you did, you also rolled many

more times. So which is it?" In either

case, he rolls a few more times in

frustration and hits a green. But then

he complains about how long it took. He

spent more time watching you and

complaining than actually playing.

Meanwhile, you've hit your green streak.

It's so much easier for you. He tells

himself. You get greens every time. This

game is rigged, so what's the point? And

he quits. So, who got the die with the

20 sides? Who got the die with the 200

sides? If you get the game, then you see

that once you roll enough times, the die

you're given doesn't matter. The die

with fewer sides might roll green

sooner. The die with more sides might

roll green later. But a die with a green

side always has a chance of rolling

green if you roll it. Every die hits its

green streak when rolled enough times.

All of us get a manysided die. and

looking at the other players, you have

no idea if it's their hundth role or

their hundred thousandth. You don't know

how good other players are when you

start. You can only see how well they do

now. But if you understand the game, you

also know it doesn't matter. A few begin

playing early, others begin much later.

The rest sit on the sidelines

complaining about how lucky the players

are. I guess so. But they're luckier

because they play. And when they hit

red, which they do, they didn't quit.

They rolled again. Learning how to

advertise is a lot like the game of the

benny side of die.

You don't know if it's going to work

until you try. And

no matter how many players there are or

the number of sides on the die you're

given, you start to see the only two

guarantees that the games will give.

Number one, the more times you roll, the

better you get. And number two, if you

quit, you lose. So I I I read that story

because that's obviously a story of an

infinite game. You and your buddy get

given two die. One of you has a

20-sided, the other has a 200 sided die.

You don't know who has which. They're

all, you know, you don't know how many

have reds, how many have greens, and

there's one green on each. you roll it

and if uh if you hit the red uh nothing

happens. If you hit green, you get one

of your many sides that turns green and

you get to roll again. And the only

statistical probability there is that if

you keep rolling enough times, all of

the sides will turn green on both die

eventually. But you just don't know how

many sides the die that you're given has

on it that are red, which means you just

don't know how many shots you're going

to have to take in order to win. And

that's why having high frustration

tolerance, having high fortitude,

having low or high resiliency and high

adaptability, those skills of mental

toughness are what allow you to stay in

the game of business. It's what allows

you to keep rolling the dice even when

you get smacked 20 times in a row as

reds. Because maybe you have a 20,000

sided die, but if you know that the one

fact of this game is that if you keep

rolling, you keep playing. And if you

keep playing, it means you're in the

game. And if you're in the game, it

means you've won. Because in infinite

games, there are no winners and losers.

There is only players and quitters.

And so I think that it took me a very

long time to learn that. And so when you

are starting out, you were just early.

You were just you have more reds left to

roll. You just got to get them out of

the way. You got to get the failures

out. It's the only way you figure out

how to play.

You just don't want to lose so bad that

you die. But as long as you don't die,

you can keep playing.

And I feel like that actually is a

pretty hopeful message despite my

relatively aggressive demeanor.

Okay, cool. I wanted to I felt moved by

that uh by that comment earlier and then

now I will uh Michael Scott the office.

Did I I don't know. But did I? If if I

did then uh then kudos to Michael Scott.

Um okay.

Let's do it. Let's do uh

let's do some some Holly. Do we have

people we have people ready on the on

the hotness? All right. For those of you

who are curious, um I'm uh I'm taking

calls with people who donated a bunch of

books as my way of saying thank you for

donating books during the launch. And uh

let's rock it. I know, dude. The Dave

Ramsey heads. I got to get a different

headset. I gotta get a different heads.

I gotta big I gotta make it different.

This is so boomer.

All right, go for it. Who do I got?

Anybody here? I can't hear anything.

Alex, I have one question. Is

subscription. All right. What are we

What are we doing here? We got calls

coming.

Was

that uh was that interesting for you

guys? Was that cool?

Visible. I would love to know how to be

a giver and not a taker. Super easy,

bro. You just give and don't ask for

anything back. And you give to people.

And then when they ask you if they can

do something, then at that point, you're

taking. Thank Lucas. Thank you for the

single W single single W. I appreciate

that.

What do I need to hit something to to to

hear this? Can they hear me? What's

going on?

>> All right, let's go to the next one.

>> Well, they missed out.

Okay. What if I can't find a job and

don't got money? Caller two, if you can

hear this, just start talking.

>> Hey, Alex, how you doing?

>> What's up, man? All right, talk to me.

What's up, man?

>> Dude, this is uh Sonia. This is Dr.

Sunny Deservich. Man, I'm a

chiropractor. Been two years in so far.

Seven years as a total chiropractor.

And um yeah, man. I'm just trying to

figure out like, okay, when I build

momentum this year, and it's like, okay,

how do I know when to keep going for

more? How do I know when to just keep

the momentum that I'm at, not

overstretch? Because I made a mistake

earlier this year, and I'm just riding

the lows ever since.

>> Like, when do you

>> What was the mistake? Yeah,

I started diving into mentors, sales

coaching, um, marketing on Facebook. I'm

just getting in all these expenses and

just trying to grow from the revenue I

got.

>> Okay. Well, I wouldn't Well, first off,

I'll say this. If you pay one-time

expenses in order for you to learn, I

wouldn't see those as losses unless you

learn nothing. If you learn things that

are just you need to put into place in

the business and they haven't fully come

to fruition yet, I just see that as an

investment. So, I just wouldn't frame it

that way, like thing one.

>> Okay. Um, second thing, uh, are you at

full capacity at your existing location?

>> Uh, no, I was at I'm not. No.

>> Okay, got it. So, do you know how to

advertise to get leads?

>> I've had some help from other marketing

companies.

>> Okay. Um, I think it's worth you

learning for yourself if you want to

like if you want to be in this in the

because like the transition that you

have to make right now and this is a bit

of a decision for you which is like do I

want to be an artist or do I want to be

a businessman and there's nothing wrong

with either of those but you have to

make a choice.

>> Okay,

>> it's let me give you let me give you a

totally different example but it'll

it'll illustrate the point. So let's say

that you're really good at making

leather wallets. All right, and let's

say you're a craftsman and so you make

these leather wallets, people start

wanting them, you keep making more

leather wallets. Um, there's two success

paths. Success path one is like you just

love making wallets, but you have more

demand than you have time. And so, you

keep doing a good job and people keep

wanting them. And so, you can only make

10 wallets a day or whatever your, you

know, your math is. And then all you do

is you keep raising the price because

you have more demand than you can than

you can handle. Keep raising the price.

And that is to me the path of the

technician is the path of the artist.

The other path, and there's nothing

wrong with that, and you can make a ton

of money doing that. The other path is

the path of businessman. He says, "Okay,

uh, you know, I I have these these

leather leather wallets. Um, I can hire

other people to make these wallets for

me. I'm going to train them up or I can

build machines that can do this with

automation. I'm going to build a

manufacturing line that can make these

wallets even better than I could at, you

know, a faster rate. And I can do it

because I'm buying in bulk. I can buy,

you know, materials for half the price.

And then all of a sudden, he becomes a

businessman, right? But all of a sudden,

you're like, "Wait, I was a wallet guy.

Why do I have to learn manufacturing and

supply and and all this other stuff?

It's like, well, it's because it's a

different game. And so, I think for you

as a chiropractor, you have to make the

call. Do I want to be a businessman or

do I want to be a chiropractor? Do I

want to be a technician or do I want to

be in the game?

>> I think I've been I went from being the

artist to let me switch to businessman.

And then I'm like learning the hard way.

And I'm like, I think I want to go back

to being.

>> The hard way is the only way,

>> dude. It's the only way. How long did it

take you to learn to be a chiropractor?

>> Yeah.

>> Uh, breaking up a bit. Say it again.

>> I said, how long did it take to learn

for you to learn to be a chiropractor?

>> I seven and a half years,

>> right? And business isn't any different.

If anything, there's more stuff.

>> True. I'm only two years in, so I'm

waiting for that third year to five.

>> Yeah. I promise you I prom I'll promise

you this, and I I hope we have a great

call back. So, I'll see if we put a note

a note on this. I promise you that when

you're five years in, if you keep at it,

that's the big caveat. If you keep at

it, you'll grow.

>> If that's what you want,

>> if you keep at it,

>> all the money I had from all my gyms

went to zero after five years.

>> So, like the only thing that's the

outcome of this is your skills. That's

all. And you're used to investing in

education. So, I don't think there's

anything wrong with that.

>> Okay, cool, man.

>> But with regards to like all we have to

do for your business, though, like like

let me zoom all the way out for like how

do you make this thing successful?

>> Yeah. the the end state of what this

looks like for you is that you nail your

individual model um with a way to have

very sticky customers option one or

option two you find a way to charge as

much as human genally possible. I've

really rarely seen chiropractors who

succeed um in any other way. They either

have a very very good recurring model

that people don't stop or they charge5

$10,000 for more specialized, you know,

neuropathy, blah blah blah, you know,

that kind of stuff. Um, and they sub

specialize in the things that people are

willing to pay a ton of money for.

>> And they sell, you know, year-long

service packages with supplements and

things like that. So, those are the it's

like either ultra high ticket or you

build something that has really high

stick. Once you nail that model,

>> then like I'm telling you the skills

that you're gonna have to learn. That's

thing one. Thing two is and in learning

that you'll have to learn how to

generate leads and sell them, right? Um

after you've done that part, then uh

you're going to have to learn the game

of attracting talent and you'll probably

have to give up, call it 10%ish, maybe

20, uh of the single location to get

another chiropractor in there who's

motivated enough to continue to work as

hard as you will to make sure that the

service quality is high. And then at

that point, you'll ascend into the M&A

game, which is either, and I would

recommend given the nature of the

business that you're in, I would

probably go via the M&A route rather

than build. So, I'd rather just buy just

f it's so easy to find chiropractors

that are, you know, that will sell their

businesses for basically zero. Um, that

it's easier to just retrofit them. Um,

and then that would be once you're in

the game game. But that might take five

to seven years. And that's okay.

>> I'm being real. Like,

>> there's a joke.

>> There's a joke I made. Once you're done

with medical school, you what? Get paid

the big bucks like what, 10 years later?

So, I'm like what? Two years away from

that. Three years.

>> Yeah, you make the big bucks a decade

later. Yeah.

>> Yeah.

>> Yeah. Same. Same.

>> No, man. You got it, man. I'll stay in

the game. I'll do my best.

>> All right. Appreciate you, man. Thanks

for calling in.

>> Yeah. Thank you. Thank you.

>> All right. Hopefully that was uh Was

that as good for you as it was for me?

Uh,

tell me the one thing that you want me

to help you with your business right

now.

Who's this? Hello.

Salutations.

Dude, I'm getting ghosted like Patrick

sees. You know what I'm saying? That is

a callback for those of you who uh who

know that one. Dated myself a bit.

Um, see, see, see see what's happening,

guys. I uh, you know, here I am. I'm

like, I'm going to make myself

available. People who called, you know,

people who uh, who volunteered that we

reached out to saying, "Hey,

>> what's up?

>> Hello."

>> All right. Talk to me, man.

>> All right. So, I have a school community

where I help fishing guides grow their

business, and I have a question about

cold outreach metrics.

>> Sweet. You help fishing guides grow

their business?

Yes,

>> dude. That is a niche. All right, let's

rock this. All right, so Okay. And you

help them with outreach or you're doing

outreach?

>> I'm doing outreach and I have questions

about my metrics.

>> Okay. Yeah, go for it. So, what are you

what are you doing outreach on?

>> Yep. So, uh, real quick, I have a 30

second spiel and I'll give you my data

here. So, I used Google to manually find

700 fishing guides phone numbers. And my

money model is essentially to give away

all the information for free as a decoy

offer and then upsell them into a

one-on-one coaching tier.

>> Okay.

>> So, I I sent them a message asking if

they want a free step-by-step guide to

learn how to get more bookings. About 8%

of them said, "Sure, send it over."

Amazing.

>> Then I sent them a link to my about

page, which which converts at about 15%

uh for that free decoy offer. And then I

was able to get a couple people to pay

for one-on-one coaching which got me to

about $1,000 a month. But my goal is to

get to 10 a month. So my question for

you is should be I be more focused on

improving the metrics since fishing

guides is such a small niche or I just

need

>> pun intended. Uh I need a couple quick

stats that I I want to get from you. So

how much does the average fishing guide

make?

The average fishing guide make probably

about 30 to 50 grand a year in profit.

>> Oh, okay. Got it. So 30k to 50k. Okay.

How many actual fishing guides are there

in I guess I mean shoot is it mostly the

US that you work with?

>> Yeah, there's from what I can find

there's about 10,000.

>> 10,000. Okay.

Okay. Hey, how much money can you help

them make?

>> Um, well, I've already helped other

people do it. I can usually get them to

about 5K per month in revenue, about 3K

month profit after about the first three

months.

>> But aren't they already doing that if

they're making 30 to 50k profit

starting?

>> Um, well, when I I mean, they are

already a fishing guide and then I'm

coming in and helping them scale their

business. So, it's not from like

literally zero revenue.

>> So, let me ask this differently. They're

currently making $30,000 a year

take-home. You can help them add another

30 to 50. Does that sound correct or is

that too much?

Ao for yo. Hello.

Hello.

I think uh I think he cut bait. I think

uh I think I I think the line snapped.

>> All right. Is it working?

>> There we go. Reeled him back in.

Okay. Okay. So, did you hear what I

said? So, they're making $30,000.

They're uh You can How much money do you

help them make more than they're current

they're currently making? $3,000 a

month.

>> Okay. Yeah. So, so more than they're

currently making, I can usually add

about an extra $2,000 on top of what

they're I I guess the part I forgot to

mention is I target underperforming

fishing guys,

man.

I mean, you just got to get 10 people to

pay you like 500 bucks, a thousand bucks

a month, right? That's what you want.

>> Yeah. High ticket.

>> Yeah. I I'll say this. Don't tell

yourself that's high ticket.

Okay.

>> All right. Because it's not it's not

high ticket. Um it's mediaish. Um but

point is this. So there's 10,000. If

your goal is to get to $100,000 a year

or 10 grand a month, um you can

absolutely do it within this vehicle. Um

if you So you found 700 of them. You

think there's 10,000 of these fishing

guides?

>> Yeah, I've already reached out to 700. I

still have a fresh list with like 900

people who I haven't reached out to yet.

>> How many times you reaching out?

>> Um, to that list of 700, I hit them up

probably like including follow-ups

probably three or four different times.

It's pretty much I've milked them for

about all they're worth now.

>> Well, you mean you've done three or four

reachouts in total to the list

>> or each of those reachouts was like a

multi-step attempt?

>> Yes.

>> Okay. So, I'll tell you what I don't

like. I'll tell you what I do like. I do

think that the goal of getting to

$10,000 a month in this niche is to

super doable. I don't think you should

reach out to the people who are

underperforming. I think you should

probably reach out to people who are

performing well and maybe learn from

them um so that you can provide more

value. So, it's like you have a small

amount of people who don't make a lot of

money and you add a kind you got you add

a little bit of money to their business,

right? So, if we can like I would want

one of these three things to change.

It's like I would like to have a lot of

people that I can add a little bit of

value. I would like to have a small

amount of people that I can add a lot of

value to. Right now you're kind of like

and also all those people don't have

money to start with. So it's like we

have three things kind of working

against us. We have to fix one of these.

So you can't fix there being more

fishing guides. You can't do that. So

you really just stuck with I can target

people who have more money or I can make

them more money. Which of them is more

more feasible for you?

>> Right. And my big uh piece of proof that

I have, which is I guess it might be a

limiting belief on why I don't want to

swing out of my weight class, but I am a

fishing guide. I've been running my own

fishing charter business for like the

last five years, and I'm at about 5,000

a month in profit. So, uh it feels it

feels a little weird to go too far above

what I've actually done.

>> I don't want to tell you to stop doing

the business you're doing. I do think

that like is there like what stops you

from doing going from five to like 20

in my fishing charter business. You mean

>> um honestly I

it's it's going to sound uh like a like

a bad answer, I know, but I have all the

work that I want to be able to handle

with that business. Like I'm I'm going

to get burned out if I push myself

harder.

>> So, I've got a I got a wild idea. What

if I mean, you know how to generate

demand, right? Because I'm guessing

that's how you got this business.

What if you charged more?

>> It would have to be pretty significantly

more uh because

>> a double.

>> My first fear would be that it would be

uh productized like people would compare

prices because there's a lot of other

fishing guides around in my area too.

>> Yeah. So, what's the first chapter in

offers? Do you know?

>> I've read it about three times. I should

know, but I don't know if the

>> I'll tell you the first chapter is

you're selling a commodity.

And so, when you sell a commodity, you

compete on price. When you sell a grand

sum offer, you compete on value. And so

to become separate from everybody else

in your space, which I think is worth

you learning because if you're going to

if you're going to help these guys with

their businesses, they're all

commoditized as well. And so you have to

help them out of this commoditized

struggle. Otherwise, they're like

fundamentally you're just going to help

them get to a business that you're

currently burned out on. That doesn't

feel good. Right.

>> Right.

>> Right. So I kind of want you to fix your

business, which I think if you do, you

will make more money in the short term

and long term.

Okay,

>> which is not the answer that you

expected. Um, like the the simple answer

for your current thing, like the if in

terms of degrees of of advice, the

easiest thing to do would be like go

find more leads, reach out to more of

them, and make sure that you're keeping

the one the people you got, you can

charge a,000 bucks a month. Okay, fine.

That's like the short-term advice. But

the kind of like medium to long-term

advice is we have to figure out a way

for you to either target ones that make

more money or help the ones that come in

to make more money. The only way to do

that long term is to actually like make

more money with your own thing or help

the people that you already have far

surpass your existing numbers. Can they

pass your numbers? Could you help them

if they wanted to?

>> Could they pass my revenue numbers? You

mean?

>> Yeah. Or take home? Yeah.

>> Oh, yeah. For sure.

>> Okay. Okay. Well, then why don't you go

help people do that and then you'll be

able to charge more.

>> I see. Okay. So, help fishing guide

surpass my number.

>> I hope they all beat you.

>> Charge more.

>> Yeah. And if you don't want to go back

into the fishing business, fine. You can

experiment with the customers you have

with a new or better offer. But you have

to be able to sell around a commoditized

pricing structure. Otherwise, so let me

say this differently because I think

this like I want this to really hit for

you and obviously I'm talking to a

zillion other people who are listening

in. If you sell a commodity, you will be

priced at the point of burnout.

The marketplace is ruthlessly efficient

at getting people to just make enough to

survive and not make enough to thrive

because that's the place where people

will stay and provide a commoditized

good.

So you have to break out of that

otherwise the market will force you.

Capitalism is very efficient. The market

will force you to give as much as you

can for as little as possible until

eventually you can't give any more for

any less. You remember that chapter in

the book

>> and there's nothing left. You are in

that boat right now,

man. In that boat. Like I'm not even

trying on that one. So, we have to

decommoditize the offering that either

you or the fishing guys you're teaching

are making so that they can charge twice

as much, three times as much. What else

can a fishing guide provide that other

people don't provide to make the whole

experience better? Can we bundle

multiple things in? Can we sell multiple

sessions? Can we bring food on there?

Can we grill the fish with them and

bring a chef so they get the the full

like I I I grilled on the side of the

boat, threw some lemon on. I've never

had fish better in my life because we're

right out of the water, right? Like, can

we create an experience around this

that's more than just like I'll take you

out and you'll catch a fish or you

won't.

>> Oh, yeah. There's definitely ways to add

a lot of extras on.

>> Awesome. And fish and people who buy

fishing typically many of them have a

lot of money.

>> Yeah.

>> Right. So like give them the opportunity

to spend it with you.

>> Yeah, that totally makes sense. And it's

kind of a double whammy because it helps

with the main fishing charter business

and with the school community to be able

to show other people how I did it. So

yeah, it's perfect.

>> Let's do that.

Sounds good.

>> All right. Do you feel better?

>> Yes.

>> So, this this solves the core issue. Go

fix your business. Make a grand slam

offer. Charge significantly more so that

you can make more so that you have the

uh confidence to then show the guys that

you help make way more. If they wait

make way more, guess what you get to do?

Charge more.

>> Yes. And you'll be able to start

attracting the people who aren't just,

you know, bottom scrapers. They're the

ones who actually doing okay but want to

do great. Those are the ones who pay big

dollars. People who are on their last

line, they don't have much. Last line.

Jesus. I like I'm unstoppable today.

Does that make sense?

>> Yeah.

>> Yeah. I get it.

>> All right. Rock and roll. Appreciate

you man.

>> Yeah. Thanks.

>> All right. Have a good one, guys. I have

a special special treat for you. This is

uh this has only happened one other time

in human history. This is historic. So

you guys you guys are gonna get this. Um

and it's come from downtown Vegas,

the the queen of clout,

the the sultaness

of

>> what the [ __ ]

My lovely wife, Lady Leila herself,

Queen Lei, has come to join us uh and

spit some fire on her Mosy Hotline. Give

her a warm W in the chat um so that she

knows that she's welcome here. And we're

going to be um dinner with you. Uh and

we're going to be taking taking the

remainder of the hotline calls uh

together.

>> Yeah, look good on me. It's ruining my

hair.

>> Oh, it's boomer as [ __ ] It's horrible.

We're going to change these. Yeah. Yeah.

No, this is which one which one of these

does not belong.

>> Are we doing chat or next caller?

>> We're doing next caller.

>> We're doing next caller. Okay, next

caller. Ready?

>> Hello.

>> Yo, can you hear it?

>> Yeah, we can hear you.

>> Oh, sweet. This is sick.

>> Okay, awesome

>> technology.

>> Yeah, sick. Okay, well, uh I want to

tell you I first of all, I want reposted

your Just Swim background. Once you

screenshotted, you you reposted I got

150,000 impressions on that. Just wanted

to let you know how much impact you

have.

>> Wow.

>> Uh I'm kind of nervous. You guys are

both amazing. I love your stuff. I tell

everyone to buy your book. So, first of

all, thank you for this opportunity.

>> Thank you.

>> Um so, yeah,

>> my name is Joshua. I run a

performance-based marketing agency

called Smither for kitchen and bathroom

remodels and outdoor living companies.

Currently at 8K per month, profit is 7K.

We work on a paper show model and

position them for high-end projects. So

not like discounts etc. Uh without

retainers or ad spend on their end. So

we take the risk there.

>> Uh right now it costs me around Yeah.

Right now it cost me around $250 to

acquire a customer on the last that's

where I ran the ad.

>> Uh I have a $1,000 setup fee and I

charge $500 to $600 per qualified

appointment show.

to get them one appointment show.

>> Yeah. To get them one appointment show,

it cost at the worst times. Um like I'm

aiming for 210.

>> And if I don't get them at least 10

appointments in the first month, I

refund them the setup fee. Now,

currently, to let you know, I do have

two clients on this, but I have three

other clients still in free service,

which I kept for cash flow because

that's what I ran before. Um my question

is from just what I told you guys now.

And from your experience, what do you

see which I currently don't see? Um, so

what would you do in my position to

absolutely like scale this or maybe do

differently? Um,

>> are you keeping the customers?

>> Oh no.

>> Um, until I'm basically I wanted to keep

them until I'm at 10K sufficiently in

the remodeling and then completely

ditch.

>> Cutting out.

>> He's cutting out.

>> I want to ditch the trees.

You want to ditch the treat? No, no.

Laya was Laya was asking a question.

Also, I think Leila's audio is low for

anybody on our team. We can boost her

audio.

>> I I didn't I don't hear Laya at all. I

think

>> I'm just mute.

>> Just

Okay. Um, so the question was I mean, I

don't think you should cut your cash

flow. You have You only have like four

customers right?

>> Um, currently at

five.

>> Okay. So, you have five customers and

that means that if you're doing $8,000 a

month, but you said 8,000 topline, 7,000

bottom line, but you said your cost of

getting a show is 210 on 500. Those

margins don't make sense. What am I

missing?

>> Um, yeah, because so bas Okay. Uh, I'm I

didn't So, for the 8K, I'm not basically

counting in the $200 which is lost. It

just count in the 300.

>> Okay.

>> The one guy I'm current one guy I'm

currently onboarding. So, I only have

one guy currently on it. Uh, yeah, the

other guys currently on onboarding.

>> And when you say guys on onboarding, you

mean a client?

>> Uh, yeah. The one company I'm currently

onboarding to get them into the $500

thing. I got his $1,000 setup fee

basically, but he's not actively.

>> And you have five clients, right?

>> Uh, yes. Currently, I'm looking to scale

this now, but yeah.

>> Yeah. I mean,

>> go for it. I know you're gonna say what

you're going to Well, I was just

thinking that we have to run some more

water through the well.

>> Yeah. Can you Did you hear Laya?

>> What?

>> No. What did she say?

>> Run some water through the well.

>> You hear that?

>> So, I need to get more data.

>> You need to Yeah, you need to get more

data. I mean, at that point, that sample

size is so small. I think we need to

focus on getting a bigger sample size.

>> Mhm.

>> And then we can go from there.

>> I I understand. Okay. Well, what is what

would you say? What is just your opinion

about the model, the offer? I'm you

know, I'm running this because all other

agencies are basically running this

paper appointment and

>> yeah,

>> uh yeah, they you know and they pay for

the ads, but like the trust is really

low in that market. So, I was think

about that.

>> Dude, I think everything's fine. I think

everything's fine. The the the I would

say one risk that I see that's

relatively significant is your cost per

show relative to the revenue per show is

kind of low. I would say the guys who I

see like really murder it are at like

20%. So you're you're at like 60 uh

sorry 40. So I would I want to see if we

could drive that down because my fear of

the business is that when you take this

to scale you'll be less efficient and

your margins are going to compress.

That's like I would say like that's kind

of like my biggest red flag. Overall the

model of lead cost and arbitrage,

there's nothing wrong with it. I've seen

some massive um agencies that run that

model. The next issue that you're going

to run into is the types of businesses

that you're serving. So, you're going to

want to go up market for people who can

spend $50,000, $100,000, $200,000 a

month in ads. That's that's what you're

going to want to go after because the

volatility of your business is going to

be predicated on the volatility of their

business. So when you go after and this

is super common for small business

owners for everyone who's listening is

like

>> you go after if you go most people who

are poor I'm not saying you're poor but

like most people who are starting out a

business go after other people who are

also starting starting out a business

because that's where your confidence

level is but their business they don't

know anything either right so it's the

blind leading the blind and you're like

what's wrong with my business all these

people are turning and they're turning

because they don't know what the hell

they're doing in their business either

and so you're going to want to earn the

right to go up market as fast as you

man. Um, and if you have five clients

that pay you what they're paying now

versus having five clients and each one

pays $100,000 a month, you could run the

same OP ops and have a hundred times the

revenue.

>> Yeah.

>> The biggest Can you hear me?

>> Okay.

>> Yes, I can.

>> Oh, okay. Fantastic. You can you can

hear me? Sounds okay?

>> Yeah.

>> Okay, great. I I was going to say the

next the next thing that you're going to

want to realize is that like we've done

the pay per show model and we also had a

software that used to enable the payer

show model. There's two things that you

want to watch out for which is one when

you're doing payer show a lot of times

the businesses are going to think well

if they show but they don't close why

the [ __ ] am I paying you? And so then

you're going to be really tempted to be

like ah can I just help them sell these

people? I'm just going to also maybe I

should start a sales agency and close

these [ __ ] That's the next

thing that's going to happen. The the

second piece to it, and by the way,

don't do that. Go up market instead

because people that are up market have

their own sales team and they understand

that concept that even though you get

somebody to show, it doesn't mean that

they're guaranteed to close. You still

need to have trained salespeople. So, do

not give into the temptation. Don't try

and serve an avatar that isn't best for

you more. That's the biggest mistake

people make, which is like you're

serving an avatar that isn't your best

avatar and you try to go above and

beyond for it. You just don't want to do

that. The second thing

>> is that okay,

>> fire is good. That's like I feel like

that's like 2010.

>> That was good.

>> Um, bringing it back.

>> Yeah, that's fine.

>> Uh, the second piece is that with the

paper show model, here's the place where

it goes wrong, which I saw firsthand,

which is why agencies had churn with it,

which is that um, customers want to be

able to predict how much money they're

going to spend with you. So, if you look

at churn and you look at customer

retention, the customers who retain the

most are the customers who understand

how much they're going to pay. And so

one thing that you can do is you can

give people a range estimate or you can

give them a heads up different times

through the month as to how much you're

going to be billing them. Now it seems

contrary because you think okay well if

I tell them how much they're going to be

paying they be like oh my god that's so

much. But the reality is actually if

they get a bill that's unexpected that

is like it looks and it's like once you

get one unexpected bill from a company

it's like by the second one there's a

50% likelihood that they're going to

turn.

>> So think about how you can communicate

with those customers. Maybe it's every

other week. Maybe it's every week to

show them what their tab looks like.

>> By increment of revenue

>> or by increment. That's a great one,

too.

>> Yeah. Just like every 5,000. Fair

enough. Whatever. Every thousand, every

5,000 they spend, you just let it just

automatic just letting them know that

this is happening. We can turn it off

whenever you want.

>> So, I think another piece that you could

also ask is when you're getting the

sale, when you're onboarding them, ask

them what their budget is. I know it

seems contrary, but it's like if you

want to get them to spend more money

with you, you also need to show them

that you're okay spending as much as

they're comfortable to start. Does that

make sense? And you can coach them up

from there once you get buy in.

>> Yeah. Okay. Yeah, that makes sense. I

currently, what I currently do is I

build like this lovable thing where I

put in the numbers. So, close rate,

average contract value, etc. And um

basically I do that on a sales call

though. So that's a big nugget in terms

of the onboarding

>> because then I can always like weekly

tell them like hey this is how much you

should spend and that's what you should

expect in the long term to get a return.

So thank you for that tip. Um I mean if

you were me here,

>> how would like you think about going

from like 8K per month right now to like

50k in this exact model as fast as

possible and also as sustain

sustainably?

>> Dude, this is we we answered it. So I I

want to ask you what do you think we

what do you think we just said? Just I

want to make sure you retain your that I

that I need to get more that that I need

to get more data and like just sell more

probably

>> and and and

>> and that I should not uh switch my

business model and get them to basically

uh convince me to get them to sell and

also make sure that they know how much

they get charged

market.

>> Go up market.

>> And go up market. Yeah.

Up up up market. The one thing I want to

ask, what do you think about the avatar

1 million above? Because I was thinking

about it.

>> Just go up.

>> You guys have an opinion on this.

>> Just go up. Just just like in your ads

or your outreach, look for people who

are doing 10 times those numbers.

>> Number go up. Good.

>> Yeah. Big number. Good.

>> Okay. Okay.

>> Cool. Like you could literally have the

same size company you have in terms of

headcount. Literally just add a zero to

what the people that you're trying to

attract are and you will make

significantly more money and love your

life more.

>> Mhm. Okay.

>> Cool.

>> Yeah. Thank you.

>> All right. Rock and roll.

>> Should I Should I Should I increase

setup please?

>> No, I don't think yet, dude. It's five

people.

>> Yeah.

>> You got to get more water through the

well. Also, there's a like for everybody

listening, like it's like, okay,

increase your prices, but like

>> you haven't even gotten to the threshold

of delivery. So until you get to a point

where delivery is stressed and you can

see how your team and how your company

operates when you are stretched when it

comes to your client load, do not

increase your prices. You increase your

prices when you know that your product

and your delivery is rock solid. So we

got to get more water through the pipes

first.

>> Okay. Okay. I got it. Thank you very

much. I appreciate Thank you.

>> Have a good Thursday, man.

>> Dude, I feel like so weird with this

headset. This is so odd.

>> I know. It feels like it's 1990. Uh,

>> my hair.

>> Yeah, my hair.

>> Next caller.

>> Next caller.

>> I should do that.

>> Go. Pineapple. Is this a pineapple bun?

What are these called?

>> Hello.

>> Hi.

>> What's up?

>> Can you hear me?

>> Yes, sir.

>> Can you hear us?

>> Yeah. Yeah. Yeah. Super nervous right

now, but thank you for the call. You

should be terrified.

>> What if I'm nervous?

>> Yeah.

>> My name is Jazz. I run Winnipeg Digest.

It's a local newsletter/media company

with an audience of 110,000 people in

Winnipeg.

>> Sweet.

>> Um, so that's about 70,000 on socials,

40,000 newsletter list in the last 18

months.

>> That's awesome.

>> We right now do

>> Yeah, thank you. We do about $10,000 in

revenue right now. 6,000 profit through

local advertising.

>> Okay.

>> Is that per month or per year?

>> That's per month. Yeah.

>> Okay. And then and then six we currently

have six annual advertisers mostly

paying about 1,000 per month with two

paying 2,000 per month. And then the

rest of the revenue comes from single

one-off ads.

>> My question is a little two-part. So the

first one is how do I scale to a million

without running out of local advertisers

in the future which I'm afraid of or

running into a supply constraint because

we only send out 12 newsletters per

month. Um so we have 12 primary No, we

send out 12 newsletters per month. So,

it's three per week.

>> Okay. Got it.

>> Every Monday, Wednesday, and

>> these are digital, right?

>> Yeah. These are these are digital email

newsletters.

>> Yeah. Got it. Got it. Got it. Got it.

Okay.

>> Yeah.

>> And are you I mean,

>> so that's my question.

>> Yeah. So, I would not be worried about

running out of advertisers. There's

110,000 people in the city. There's you

can for sure get enough advertisers.

That's not an issue. So, put that one

away.

um you running out of ad space is more

uh more possible.

So you have how many people on your

list?

>> Yeah. So yeah, so we have 40,000 on the

list. The city is a million people.

>> Oh, the city's a million.

>> 110 thou?

>> Yeah. So the city is a million people.

The 110,000 is what our audience size

is. So it's 70,000 on social media.

>> Oh, dude. You have so much room. You

have so much room. So much room.

>> Yeah. So that's kind of So Okay. So if I

have room then kind of from a rowing

perspective then I'm afraid that we'll

run out of ad space. So we'll run run

into a supply.

>> No, you're not going to run out of ad

space. You're going to have to make sure

that you're pricing your CPMs

appropriately. So said differently, if

you have, you know, 250,000 of the

people out of the million in the city on

your newsletter, you could charge a tr I

mean every ad would be you'd be, you

know, $100,000. Like it would be a lot.

>> Mhm.

>> You know what I'm saying? So yeah. Yeah.

So the space itself obviously you have

limited you you don't want you don't

want to send your entire newsletter is

just all ads right that's not going to

work. The way that media scales is via

impressions and and and quality of

impressions

>> and so you can charge more for the same

space. That's that's what you have to

do. So it's like how do I scale this

business? You get more eyeballs

>> but it's like there's not that or like

with I don't know if there's enough

businesses that can pay me 200 like

$100,000 per ad. You know,

>> there are for sure businesses. Well,

again, you're you're selling 12 ads a

month. You're $1,000 a month in in

advertising is not like many businesses

can char can do that. Many businesses

can do five or 10.

>> Mhm.

>> Dude, like my dad used to run my dad's

local business owner, right? He used to

spend 10 or $15,000 to be in like

Baltimore Digest or something or

Baltimore's whatever. like one Yeah.

>> one magazine per month went out, you'd

spend $15,000 to be in that thing for

like a half page, right?

>> Mhm.

>> So,

>> okay. Yeah. So, that kind of that kind

of semi I guess that kind of answers my

second question, too, which was like it

was either okay, should I expand to new

cities, stay in the current one, but

niche down, so let's say go start

another one, but say Winnipeg Real

Estate Digest or something, right? Or

just keep

>> I want you to keep scaling this one. I

do not think it's worth you uh splitting

splitting your attention right now. I

think you have way more way more

impressions to capture. The other piece

that you want to consider here though is

like you're sending a a newsletter. It's

like are there other places you can like

>> you have 70k on social. It's like we can

charge for posts, we can charge for

stories, we can charge for YouTube video

integrations, we can charge for

newsletter. Like I would rather you do

all that stuff

>> first

>> before even considering niching down for

now.

Okay. But what you would say the next

step would be to niche down after like a

certain

>> scale. No, I I don't even want you to

think about niching down. I want you

just do more. You need way more.

>> Okay. Okay. And then

>> Okay. And from a acquisition standpoint

of subscribers, we are currently running

Facebook ads and acquiring subscribers

at like a$140, right? So that's that. So

my question then is do we continue to fa

scale Facebook ads cuz right now it

takes about like 3 months to break even

on a subscriber.

>> Okay. So you already know that. Yeah. I

mean that's fine man.

>> Yeah. So it

>> Okay.

>> Yeah.

>> Scaling Facebook ads in social.

>> Yeah. You can also sell people longer

you know periods of time on the front

end.

>> Mhm.

And is there and is there like a

front-end offer like because I know a

lot of people in the space try try and

achieve like negative cost for acquiring

a subscriber right so um having some

sort of a front-end offer would you say

I should still continue to just push B2B

advertising or

>> you can push B2B advertising as you do

your Facebook ads where people opt in

for the newsletter just have something

called an SLO which is selfquidating

offer on the thank you page.

>> Okay. Do you have anything on the thank

you page that you sell them?

>> No, nothing right now. I made

>> I'm about to change your life.

>> I'm about to change your life. You

ready?

>> Yeah.

>> I want you to offer a a 10 pack of Guide

to Winnipeg's best restaurants, guide to

Winnipeg's best new uh spots, guide to

Winnipeg's best skis, best dessert.

Like, literally just put a put 10

different kind of like magazines. Do it

once. uh make that 10 pack like $37. Put

it on the thank you page. If you can get

one out of 37 people to buy it, your

cost of acquisition is zero. And then

you can scale this thing to the [ __ ]

moon.

>> So those would be physical like physical

things or

>> No, you can make it digital, dude. You

can make it digital. It's fine.

>> Okay. Yeah, I was literally about to

offer that for free in our welcome

sequence. So

>> there we go.

>> Okay. And yeah. Okay. No, I think that

kind of answers.

>> I feel like we just I feel like that was

pretty good.

Yeah. I mean, no, that that's crazy, but

thank you.

>> No, like I mean I've been I've been like

going back and forth with like, "Oh,

should I start a Christmas holiday

lights company on top of this?" Or like,

>> that sounds [ __ ] awful.

>> No, it sounds horrible. Do more of this.

All you had to do is add a selfquidating

offer on the front end. You'll be able

to grow the hell out of your media. You

can charge more. You can get more

advertisers in. Done and done. You can

also, if to your concern, you can also

parse your list, right? So, let's say

you triple your list size. If for some

reason you can't find advertisers who

can pay more, which I wholeheartedly

reject, but just to show you that you

can still be creative here, you can say,

"I'm going to send uh 12 emails to these

people, 12 emails to these people, and

12 emails to these people. List A, B,

and C, cuz you made the list three times

as big, and you can charge that many

more times."

>> Uh-huh.

>> Okay. Got it. That answers, I think, all

my questions. Thank you.

>> All right. Rock and roll, man.

appreciate you.

>> Thank you so much. Bye-bye.

>> Goodbye.

>> You should take this one.

>> What What are the questions that we're

prompting people with?

>> Yeah, I feel like I smashed that one.

>> You're I'm not going to answer a

marketing question. So,

>> fine.

>> Tell us what the next caller is.

>> Hopefully, it's a people question. Like,

people, they're alive.

>> Anything but marketing.

>> Yeah. Anything but marketing.

>> Anything but marketing. I can help

answer. All right. Next call. I'm not

>> What's up, guys?

>> What's up? Hey,

>> this is uh this is crazy. Um very

excited to be speaking to you both.

>> We're excited to speak to you.

>> Tell me about the biz.

Um yeah, so I uh run a company where I

essentially help remote high ticket

sales coaches uh with their fulfillment

by providing job opportunities and then

coaching for their students/clients on

best application processes, interview uh

support and prep and and things like

that.

>> Um which part of the delivery doment

>> can you hear me? What part of the

delivery do you do?

>> So, I like post the job opportunities

inside of their community. Um, and then

I do group coaching calls once a week

with some of the clients and then DM

support, answering people's questions,

reviewing their application videos and

things like that.

>> Okay. What do they do? They're

responsible for sales.

>> Yeah. So, they're sales coaches. So,

they're teaching people the sales side

of things. And most of them before I

come into the business are doing part of

the you know helping them land jobs um

but often are struggling with having

enough job opportunities and the

coaching part of actually uh teaching

people what to do properly to get hired.

>> Got it. So they're really good at

getting the clients. They're not good at

getting the clients the opportunities.

So you bring them the opportunities.

You're responsible for the second

funnel.

>> Exactly.

>> Okay. Great.

Um, so I guess like the bottleneck that

I have is we currently have 45 um,

communities that we work with.

>> Wow.

>> Um, we work on a retainer model. Uh, we

don't charge the businesses anything for

the recruitment uh, services. Not really

recruitment services. It's just like

posting their opportunities in the

communities. Um, and so the sales

coaches pay us a retainer. Uh, it's

anywhere from two to $4,000 a month. Um,

and I run the entire business and

fulfillment. And so I guess my

bottleneck is that the business is not a

business. It's me. Um, and for

placements when you get them

opportunities.

>> No. So it's just like a flat retainer

modeling the job opportunity.

>> No, you're providing Let me say it

differently.

>> These guys get jobs at businesses that

need salespeople. Correct.

>> Yes. So who those businesses you just

give them people for free?

>> Exactly. So I don't charge the

businesses anything um so that that

doesn't become a bottleneck so that I

can have as many job opportunities as

exist in the world.

>> So it'd be like I would come to you and

say I need remote sales people and you

would be like I'll give you some for

free.

>> Yes. So let me know anytime you need

sales reps.

>> I I mean I wouldn't do it because I

wouldn't believe that you were any good.

>> Yeah. There's that.

>> Well, we have uh anywhere from 500 to

600 job opportunities that we post per

month. So, we've got a lot of people who

do trust us.

>> I You get what I'm saying? Okay. So,

what's the problem with your business?

Well, just that uh I guess I'm

bottlenecked by I have no team and we

have 45 clients and so uh I'm not sure

where to find the right talent, how to

incentivize the right talent for um the

fulfillment side like coaching, finding

the right opportunities. I I guess I I

just don't know what direction to go in

to scale beyond where we're at

currently.

>> So, let me ask you in the business right

now, where do you spend most of your

time? Is it on sales? Is it on

fulfillment? like which piece

>> um it it yeah I don't really spend very

much time at all on sales. It's it's

pretty much all on fulfillment. So uh I

guess like liazing with businesses who

are looking to hire sales reps. Yeah.

>> Um and answering questions and getting

on group coaching calls with the

students of my clients.

>> How many group coaching calls a week are

you getting on?

>> Uh currently around 20 per week. So, a

little less than half of the total

clients we work with have that as part

of the services I provide.

>> Gosh. Okay. And then of that time, the

rest of the time you're spending DMing

people essentially like answering

questions in the group.

>> Exactly. Yeah.

>> Okay. And then what would you do if you

weren't if your time wasn't being taken

by doing either one of those things?

>> Um, I think it would just mostly be be

acquisition. um finding more clients and

making bigger, better connections with

with businesses and people that are

hiring sales reps consistently.

>> Yeah. I think the first thing that you

should try and get off your plate is the

questions. Um because if you can bring

somebody on and you can train them on

answering the questions in the group,

that's like a it's almost like they're

onboarding to then take over calls from

you. My question is when you're on the

calls, what is the like if you were to

tell me the top three things that you're

teaching them on the calls, what would

those three things be?

>> Uh, I mean, I I think the like the

application videos would be the the

number one thing, but the the majority

of those calls and answering people's

questions is all like personalized. So,

it's based on their situation and their

past experience because I work with some

people that have a ton of sales

experience and some people that, you

know, this is going to be their first

ever, you know, go at sales. Um, and so

it's mostly personalized to like how can

we frame the experience they do have or

the lack of experience in the right way

to be able to help them land a better

job than they have currently or their

first job.

>> Yeah. So, it's essentially a lot of

career coaching to a degree, just in

like a less traditional sense.

>> Yeah.

Okay. So, you're looking for somebody

that can essentially be a career coach

for the sales remote sales opportunity

peeps.

>> Yeah, pretty much. And I think like the

struggle is I don't know who has the

understanding of the industry and and I

guess enough expertise and obviously I

can coach that but um to to have

authority in those conversations that

isn't a great sales rep who could make a

lot more money selling than uh helping

people get jobs.

>> So there's two different models that you

can think of when you think of a

coaching business like this. And I think

this goes for like any coaching business

in existence, which we've talked to so

many and I've helped structure multiple

teams like this. Like there's really two

models that work and there's trade-offs

in each one. Meaning like you kind of

just want to pick your problems and so

I'm going to describe each one and you

can tell me which one you think you

would rather have the [ __ ] that comes

with it. The first one is that you hire

people that are going to be full-time.

The downside of this is it's going to be

harder to find those people because

they're competing with these other

opportunities. So, just like what you

said, it's like they could go make more

money somewhere else, which means the

type of people you're going to find are

people who directly want to learn from

you and they see this as a learning

opportunity, not an earning opportunity.

And they one day want to open up a

business similar to yours. So, there's

two downsides here.

>> Yeah.

>> Which is one, uh, they're going to be

competing in terms of cost and so

they're looking at these other

opportunities. They're not going to come

in for super cheap even though they're

trying to learn because the anchor is

just very high as what they could earn

elsewhere. The second side to it is that

there's going to be a finite timeline on

this because they're coming in to learn

and so once they feel like they've

learned enough that they can go off on

their own or go do something somewhere

else and learn more, they're going to do

that. However, the benefit is that it's

less management for you because if you

bring these people in, you probably only

need a couple of them literally to take

care of all the clients that you have

and you get a ton of discretionary

effort from them because they're

full-time employees with you and they're

trying to learn. So they want to go

above and beyond because they're trying

to acquire the skills.

>> That make sense? That's the first model.

The second model

>> absolutely

>> is easy to find and also hard to manage,

which is find people that essentially

are doing what you just described.

They're already those coaches making a

lot of money, but they want to make more

money and they want to have influence.

They like the status. They like the

teaching. And so as a side opportunity,

they can do this for 10 or 15 hours a

week, maybe even less. And so then what

you would do is you would get more of

those people. Say you need based on, you

know, 20 calls a week plus whatever, say

it's 40 hours, maybe you need four or

five of them to cover you. You pay them

a lot less. You get them fractionally

and part-time. The downside to it is

that it's going to be more management

from you because you have to build out a

schedule. You're going to have to make

sure that they're all, you know, clock

in, clock out, whatever, all the

compliance. Um, and so

>> I would say that if you have a hard time

finding the people, then maybe go with

the model where you have the part-time

coaches coming in. Um, I would say the

other upside to doing the part-time is

that if you lose one, it's not a big

deal. You can replace them fairly

easily. There's a lot of keyman risk in

the first model. And so if you don't

feel like you're like going to really be

great at retaining them, I typically

tell people to steer away from that

model.

>> Let me Yeah, I'm going to p you back on

that. So the nice thing with the partial

model that Leila just outlined is that

one you you're placing all these sales

people right now and you already have a

history of placing a lot of sales people

already right and they already went

through your training and whatnot and so

I would say take your most successful

alumni and say hey want to make an extra

five grand a month and give back to the

community that you came from many of

those guys will probably say sure I'd

happily do it because you know five

grand because a lot of you know sales

people they get tired of selling all the

time and so this gives them a little bit

of a break and feel like they're giving

back. Yeah exactly. So, I actually

really like that model. Um, and given

the fact that you recruit all these

sales people, I don't think it'd be that

hard. Um, second, because it would it

would kill me and eat me up inside to

not at least say it. Um, you can double

your revenue really easily. Can I tell

you how?

>> I would love to know.

>> So, I hear where you're coming from with

the, "Hey, I want to have as many

opportunities as possible so I can find

as many places as possible. So, making

it free is a way to do that." I hear you

there.

>> But you probably know of all the

candidates you have that there's

probably 10% of them that are killers

and are going to do well, right?

>> Yeah. Yeah.

>> Right. Have a tier that's 2500 bucks or

$5,000 per head that you say, "Hey, uh,

all these people are free. I personally

screen these ones and give them a blue

check mark uh from me and these ones are

2500 bucks or 5,000 a pop."

>> So if you get 600 placements a month is

what you're doing. If 60 of them are

paid at 2500 or 5K, that adds $150 to

$300,000 a month to the business.

>> That makes a a lot of sense.

>> Boom. Rested. Okay.

>> You're like, I got to get that one out.

>> Yeah, I definitely I definitely need to

implement.

>> We call that a money model.

>> Call that a money model right there.

Right there.

>> You should write a book.

>> I should write a book about that.

>> Does that that help? So that Leila

solved your uh your your delivery model

and that solved your money model.

>> Rock and roll.

>> Yeah. Yeah. That that's awesome. Thank

you guys.

>> All right. Appreciate your bed.

>> That was a fun one. That was good.

>> That was nice.

>> Little spice.

>> That a little spice of life. That was

fantastic.

>> What's up, Simon by the way? Um

all right, let's do next call. Let's

rock and roll. Who else we got?

>> Hey, I'm I'm Brian. Uh hey, Alex. Hey,

Ila.

>> Hey,

>> what's up

>> going on? So, I run a online coding boot

camp for adults called parity.io and I'm

in a pretty frustrating position where

we've like basically plateaued at around

30 to 40 people per year. We we have

pretty good reviews. People seem to like

us. I do pretty much only organic

through a podcast and around 30,000

followers on LinkedIn. And

>> I'm just wondering how do I hit this

magical 100 people per year target? What

do you charge?

>> $9,200.

>> So $9,200 is what you charge. And you've

got 30 to 40 people a year who are

buying it.

>> Yep.

>> How long have you been doing it?

>> This business has been around for about

5 years and I've been running it for the

last two.

>> And then was it at Oh, so did you buy

it?

>> I'm sorry. Can you say that again?

>> Did you buy the company?

>> Yes, I did. like a seller financed uh

purchase. Yeah.

>> Okay, understood. And last year was it

also at the same number

>> basically? Yeah. Like the it it had a

pandemic, you know, plateau. It went up

to like 50 or 60 people during the

pandemic when it was the software

developer market was really hot and now

it's kind of gone to like 30 or 40.

We're we're priced under most other

coding boot camps and we're much more

personalized, but it just feels like

yeah, it just feels a little stuck at

this point

good experience to ads

>> almost all through a podcast I do that

has about 10,000 listeners per month,

but it just feels like

>> it it's frustrating. Like that's a lot

of people, but it feels like no one's

actually

>> No, dude. 10,000 is 10,000 unique. So

there's 10,000 downloads.

>> It's 10,000 downloads,

>> right? And how many pockets do you make

a month?

>> Yeah.

Uh, two per week. Yeah. Eight per eight

per month.

>> Yeah. So, call it, you know, it's 1,200

per episode downloads. And not all

downloads are listens.

>> That's right. Yeah.

>> Right. So, you might only have a,000

people, right? You might only have a,000

or 500 or 600 people. And yes, we read

the chat, by the way. Um, and there's

only 500 or 600 people who are actually

listening. So, the fact that you're

getting 30 to 40, that actually sounds

like

>> good.

>> You're getting Yeah, you're getting 5%

of your podcast to convert.

>> Okay.

>> Okay.

>> Has your podcast grown in the last year?

>> Yeah, you it did, but I think that was

like from doubling the amount of

episodes. So, I think it was like I was

looking at it like, "Oh, great. I'm

getting more people." Yeah, I think that

was the issue. And so, I've been trying

to like explore LinkedIn. I'm like,

"Okay, I have like 30,000 people on

LinkedIn." And then trying to write

daily like

>> not as many as I think. Most of the

people come from the podcast and we ask

people, "Hey, how'd you find out about

it?" It's almost always through the

podcast. There's there's like I'd say,

let's say 25% come come through LinkedIn

and that's about it.

>> All right. So, you have a marketing

issue. No one knows you exist. And

>> the It's It's great that you have a

podcast. Podcasts are very very

difficult to grow because there's very

low suggestability. So you would want to

take So I see podcasts and like email

list for example as very middle and

bottom of funnel

>> and so you need more top off ofunnel

awareness type stuff. So LinkedIn works

that's fine but I would also be looking

at I mean I know it's just you um but I

think you just need to make way more

like instead of making more podcasts I

think you need to make more LinkedIn

content uh for sure cuz that's where a

lot of people like I think that's a good

place. I think X is also a pretty good

platform for people who are trying to

like buy, you know, coding stuff. Also,

repurposing that content super easy

between LinkedIn and X because it's

almost all words. But beyond that, if

you take the words and then you make

videos of those words, shorts or longs,

combine the best three, four, five

LinkedIn posts you make and then make

those into longs uh for YouTube. If you

combine all those things together,

you'll get significantly more traction.

Beyond that, I'm assuming what's the uh

what's how are people actually buying

from you?

We have like a we we go through a loan

provider so it's zero money up front

like we are accredited so we can like

get loans people typically pay over like

a year back and we get the money up

front and the loan provider takes care

of like the payments.

>> No I'm not worried about that but what's

the but no the convert like click to

close what's happening?

>> Oh click to I'd say like about 25% of if

that's what you're asking like 25% of

people convert.

>> No. So, I see a LinkedIn post or you're

good. I see a LinkedIn post or podcast.

What do I what's my what what gets me to

take action?

>> Oh, okay. It's like at the end of each

episode, I'm like, "Hey, you know, go go

to.io and fill out this application."

>> Yeah. Okay. So, thing one is we need a

better lead magnet.

>> So, it'd be like I would say you have

your course thing. I would say give the

first module away for free

and say, "Hey, like learn how to do this

in under 60 minutes." the first like the

one thing that's really valuable like oh

my god this is amazing and then all you

do is all those people get that thing

for free you'll get way more leads you

can call them up and then sell them

>> because a direct ask of like go apply is

tough

>> yeah for sure

>> right super bottom of funnel like you

have a very bottom ofunnel business and

so that's why it's not growing because

everything is about just conversion

>> yeah I was also thinking like we've had

a lot of companies that we've worked

with that are in the space and the ones

that I've seen that have had highest

revenue. They actually they make YouTube

videos. So, the reason I think it works

well for that is because like it's a

very um like a lot of people that get

into coding like they like watching a

lot of videos on coding. So, it's like

listening to it is very different than

like watching it. I almost feel like you

could take your podcast and literally

just turn them into YouTube videos. I

think that you'd get a lot more buyin.

There'd be a lot more trust and then

you'd probably honestly get way more

lead flow that way because it's a a

platform that's easy to grow on compared

to podcasts. So, it's like I wouldn't

stop doing the podcast.

>> Yeah. In conjunction with what Alex

said, I think the thing I'm thinking is

just like you're putting a lot of effort

into a channel that's not going to give

you a lot of return.

>> Yeah.

>> Like my podcast and Alex's podcast, like

that is like the it's the one thing that

probably comes from like

>> I would say like if we want to do it the

right way, it would take a ton of effort

and be difficult to distribute across

other channels optimized for those

channels. Whereas YouTube, if you made

YouTube videos, you could take that and

put that across Instagram, Tik Tok,

Snapchat, LinkedIn. Like, it's it's such

a better source piece of content that

when you're ready to scale again, you

can scale that across so many different

platforms versus the podcast always just

audio.

>> Video turns into audio much easier than

audio turns into video.

>> Correct.

>> Yeah.

>> So, TLDDR to do and that's probably

keeping it going.

>> Totally.

>> TLDDR, two things you need to do. Thing

one, get a better lead magnetic. thing

to you need to advertise way more which

means you need to put out higher volume

of content across all platforms

especially ones that have high deliver

uh high discoverability.

>> Yeah. No tracks and and so you probably

wouldn't do ads at this point, right?

>> No, I think you can I think I think you

can post No, I think you can you have so

much meat on the bone with organic right

now. I would do I would just double I

wouldn't double down. I' I'd down.

>> Okay. I appreciate that.

>> All right, man. Rock and roll.

Appreciate you.

>> Cool. Hey, thank you.

>> All right, later, brother.

>> See you.

>> Scott, I just found your uh your YouTube

the other day and I liked one of your

videos. Oh, nice. Funny.

>> And Simon, appreciate the shout for the

book. I'm glad you like it. He's

referencing that green book, everybody.

Money Models.

>> It's also free on my podcast for those

of you who are broke. Um,

>> it's also a free course on my site for

those of you who are also broke. It's

also there. You don't even have to opt

in. You can just watch it. Um, but we're

here now. So, let's do this. Next caller

is ready. What's up, Nick caller? Okay,

let's body slam.

>> What's going on, guys? Can you hear me?

>> Yes, sir.

>> Going on. My name is Josh. I own a brick

andmortar pest control company that

focuses mainly on recurring service

plans, residential clients.

>> Yep.

>> So, so currently my constraint is

optimized my offer. I feel like there's

room for improvement.

>> Optimize your what? So,

uh, my constraint is optimizing my offer

>> offer. Okay.

>> For improvement.

>> Okay.

>> Yep. So, um, I've been bundling

basically all the services into like a

mother of all bundles type of deal.

>> Yeah.

>> Um, I basically can't upsell with that

since I'm bundling everything and

margins get tighter, but my close rate

does increase. Um, but when we don't

bundle, the opposite happens. Close rate

margins do increase along with upsell

potential. Um, so my question is, which

of the two would you deploy to scale the

quickest? Um, currently at a million

dollars, start the business a year ago,

looking to get to five next year.

>> My question is, you said close rate

decreases when you take away the

bundles right?

>> Uh, yeah. So, so basically, yeah, with

the uh that bundle, um, I basically just

can't upsell.

Yeah, pretty much.

>> I'm curious, do the customers, do you

sell less of a specific type of customer

like in terms of like income range or

type of house or something like that?

>> It's all upscale like uh yeah, basically

upper

upper middle to higher. Is that was that

what you were asking me? Yeah, I was

just trying to understand if like

there's a specific type of customer

that's more attracted that you're not

getting when you switch that you lose

with the switch, but that the ones that

you're getting are going to have a uh a

greater LTV. So, it's like kind of worth

the trade-off, but I was just trying to

understand if there's a difference in

customer.

Yeah, it's uh so the the customer um

basically

yeah I it's like so so the customers are

pretty much the same. It's really not

going to change.

>> Okay.

>> So I pretty much I'm focusing on like a

higher customer here that's willing to

>> Yeah. Let me push back real quick. So

you said your constraint is your offer.

I would say how do you know that?

Well so

well, so because of the So really,

honestly, it's like that close rate, it

it drops when we um when we don't

bundle, and when we do bundle, it goes

up. I mean, the business is rocking and

rolling. It's doing great. Honestly, I

don't. I'm just wondering if that is the

constraint.

>> It doesn't sound like the constraint.

>> Like, what's stop like

>> why is the business not doubling in

revenue?

>> Like, yeah, what's stopping you right

now? I mean, you said your close rate's

fine when you have the bundle, so sell

the bundle. Okay. Unless there's some

other major problem.

>> So, the only thing is that the upsell

potential drops, so the LTV does drop.

>> Well, then why don't you raise the price

on the bundle?

>> Yeah, I guess could just raise the price

on the bundle. I mean, it's like

>> love this for us.

>> I will raise the price on the bundle.

This was great. I'm glad we uh glad we

had this.

Okay, you we have this thing that

everyone wants to buy, but it has lower

margins. It's like, well, I'll bet you

if you're especially going to upscale,

they don't know the difference. So, you

know, tack on 20 and then I'll probably

like double your margins.

>> They won't even know. Yeah, you're

right.

>> I love it.

>> Yeah,

>> this was fun.

>> Appreciate it. I'm going to be seeing

you guys in uh December.

>> Oh, fun.

>> Well, rock and roll, man. We'll see you

out here. Tell us how much more money

you make in the meantime.

>> Yeah, that'd be lovely.

>> A whole lot of money. Thank you guys.

>> No, you bet.

>> Have a good one.

>> My team, somebody's got a low battery on

their Mac. There's so a a battery thing.

>> Alex, everyone wants me to smell your

beard.

>> Does not smell like cheese. Why would it

smell like cheese?

>> I don't even eat cheese.

>> He doesn't even eat cheese.

>> I don't eat cheese.

>> Um, okay. So, what's Do we have Did we

Did we hit all of our uh

>> Oh, we have a next caller. Okay,

>> let's do next caller.

>> I have a client which is my boyfriend.

I'm 17. That sounds racy, JC.

>> What?

>> That sounds wild.

>> I'm inspired to start up my performance

market agency to low cash. I am the

moment. I would love your thoughts on

that, Alex. I mean, what a hook. The

second part almost had nothing to do

with the first part, but hilarious. Uh

maybe JC, how do we join the hotline? Uh

it was we're calling out people who uh

bought a bunch of books at the launch.

So I'm I'm trying to trying to do right

by as many people as I can. They helped

other people get books for free, so I'm

helping them. Um

>> cheese crackers.

>> Cheese and what the hell,

>> dude? We don't eat crackers.

>> Who's who's on? Who's who's on first?

>> Hey, this is Paul.

>> What's up, Paul?

>> Hey, how's it going? Cool. All right.

Um, so I run a marketing agency for uh,

martial arts schools. Um,

>> oh,

>> I offer lead generation and yeah, I

offer lead generation and appointment

setting services. Um, I currently am at

420K in revenue, 100K in profit. Um, and

yeah, I guess the problem right now is

that I kind of started this just doing

freelancing. Kind of stumbled into

martial arts on a whim

>> after having success with a client. Um,

I figured out like a repeatable system

to get them results, get people showing

up, get people coming up for the first

class. And that's kind of where I'm at

today.

>> Um, and I guess my problem right now is,

you know, I'm selling three months

contracts and uh, turns pretty high

still and I kind of just didn't really

fix the churn issue. I kind of just

started selling a lot and getting

clients and I have a good relationship

with all of them. But uh,

>> I've been kind of stuck at this range,

this uh, 35,000 per month for a while

now. And uh

>> clients just leave for a lot of reasons

out of my control. Either a I do a great

job and they can't handle the long

coming in or B they don't have the

patience to kind of keep going with it.

And uh I think

I don't

>> I don't run a martial arts school

myself. So sometimes I have some issues

with sales and

>> um I can't really run internal stuff. So

I kind of just grew this agency on a

whim.

>> What do you want to have happen? Before

I answer the question, what do you want

to say?

>> What's your goal?

>> Yeah,

>> that's the question I like to start

with. Like

Yeah, I think right now I'm trying to

figure out if I should keep pushing on

this or if I should pivot. I've been

like I didn't really set out to start an

agency.

>> What do you want to have happen? What's

the goal? It depends whether you should

push or pivot or goal.

>> You're trying to make a certain amount

of money. You trying to sell a business?

Do you want a lifestyle business? Like

you know what I'm saying? Like what do

you want?

>> I think right now I think I want to

learn how to make a lot of money and

exit and learn

to finish.

Yeah,

>> we we can tell you that.

>> Yeah, that you will not exit this.

>> So, the question is, can you learn

something from this business

and make money at the same time or is

there a better opportunity?

>> Yeah, I thought about potentially

selling my book of business and then

opening up and pivoting to some sort of

brick and mortar kids education

business. I mean, I've I've kind of

fleshed out the scripts on how to get

parents and getting them invested into

martial arts program and the whole

nurture sequence behind it. So, I

thought about investing the money cuz

I've saved about $100,000 from this

business and I was thinking of kind of

leveraging that into maybe investing in

an actual brick and motor and learning

how to scale that. But, um, I guess I'm

just trying to figure out, do I, you

know, I'm in a good spot? Should I push

the agency, grow it? You know,

>> I'm curious what is going to say.

>> We'll probably have two different

pieces. Like we'll probably come at this

from two different angles, so you'll get

a double trouble on this one. Um,

>> sure.

>> But I'll say this,

congratulations on learning how to

generate leads in a market and work them

and get them in. You've you've learned

acquisition. Super valuable. And you've

learned it for a specific avatar, right?

>> Yeah. Appreciate that. the next step

that this business like I can tell you

where this is going to go. You would

have to you'd have to basically change

this entire business in order to make it

uh a bigger sellable business which is

essentially the same as starting over.

Uh if and that's all based on your goal

because the reason that you have the

churn you have is because martial art

studios in general tend to have sign you

know they have high churn. They're

typically not very good business owners.

Uh not very good but just they're small

right? They're very volatile and so that

volatility is reflected in your business

and volatility in their business and

your business therefore creates a

business that is not valuable,

>> right? And so that's going to be based

on them. The only way that you can get

those types of customers um who are

volatile inherently to be sticky is to

look at the things that those people

already buy that they don't turn out of.

So what are the things that they buy

that they don't turn out? If you were to

stick with this, and I'm just using this

as a mental construct and then I'll get

into more specific examples of what I

think you should do next. But big

picture, you could their their payment

processor they don't turn out of, right?

their CRM they don't turn out of

>> um

>> right

>> their insurance you know what I mean

like like there's there's things that

they don't turn out of

>> marketing stuff they will turn out of

left and right and center right

>> so

>> I think that you have this whole kids

education thing

>> if it were me I would prefer you go and

find an industry if you want to do brick

and mortar which is fine if you want to

go brick and mortar I would find an

industry that already has a product or

service that people don't turn out of

then I would apply your skill of

learning acquisition to that business

and then you'll be able to like you can

go and start acquiring businesses um and

then filling them up because you know

how to acquire and those businesses um

will already have the stick in place and

so you'll have the full stack.

>> What was your experience prior to this

business?

Uh well, I worked for a marketing

company and I learned lead generation

there and then I kind of just um the

company ended up getting sold. So I

ended up, you know, trying to get a job

with freelance thing and I learned Yeah,

I took I got my own clients and then

after I did that for about two years and

here I am with a bunch of clients and I

don't really know what the next step is.

So

>> Okay, that's great to know that you came

from a marketing background.

>> Yeah.

>> Yeah. So, I I I thought about getting

into the uh kids education space

because, you know, I did martial arts

because um I came from a sports

background, teaching kids like different

sports, specifically frisbee. Um which

was cool. Um and I guess I thought

about, you know, buying some sort of

like tutoring business or kids education

and taking my marketing skills there and

growing that. Um but, uh just because if

my goal is to learn how to sell and and

and sell a company, I'm not sure if the

agency space is there too. That's where

my head's at. cannot be

>> just find something that has high

revenue retention, high stick.

>> I was going to say, you want to find

something easy to market like,

>> right?

>> I think it's really impressive that

you've done what you've done for martial

arts studios because we've worked with

thousands and it's tough. So, I I can

say that objectively.

>> Uh it's like you have a you know like a

level eight skill that you're using on

like a level three opportunity

and the opportunities that you're kind

of presenting, they're not really that

much better. It's like maybe a level

four.

>> They're just different. Yeah.

>> I'm like, can you get a level eight

opportunity to match your level eight

skill?

>> You guys,

>> it's something that has revenue

retention. I'm just telling you right

now, it's something with revenue

retention.

>> Yeah. If you just solve for that,

because once you have revenue retention,

if you know how to acquire customers,

you just grow a business every year just

gets bigger. That's I mean, the hardest

thing is revenue retention.

>> I just want to like open up your mind.

You're looking at opportunities that are

linear. I want you to look at

opportunities that are exponentially

different than what you're doing right

now.

>> And I think the reason you're thinking

linearly is because you know without

noticing we have these beliefs, right?

That we keep ourselves in these boxes

thinking like this is what I'm good at.

>> The fact that you're very good at

marketing, you need to find a great

product that retains customers easily to

market. What that is, maybe it does

scare you or makes you nervous. You're

like, I know nothing about that. That's

okay. You can figure it out. And the

thing that I tell people a lot is it is

just as hard to build a small business

as it is to build a big business. Both

of them are going to be painful. You're

going to suffer. There's going to be

late nights. It's also just as hard to

build a uh I would say like a more

advanced business as it is a small

business. I can tell you that from

personal experience. Like building a gym

up to what it needs to be is as hard

emotionally

as building a large company like

Acquisition.com. And they are hard in

different ways and they're also easy in

different ways. So, you're going to have

50% [ __ ] and 50% good no matter what

opportunity you pursue. I would love to

see you pursue an opportunity that is at

least worth the 50% [ __ ] you're going to

go through. That's something me and Alex

talk about a lot, which is like pick an

opportunity that's worth the pain

because it's going to be pain no matter

what. This goes for everybody on the

call. It's going to be hard no matter

what. So, pick one. Even if you're like,

I don't believe that I could do it. You

will figure out a way and everybody

does. Even when we started

acquisition.com, you know, we didn't

know anything about

>> investing or buying companies or doing

any of those things and we learned along

the way. It's just that you have to have

the belief in yourself to just start.

Like you're not going to feel ready for

any opportunity that's exponentially

different than what you're doing right

now. You get ready by starting.

>> Got it. Just got to find a level eight

opportunity. No,

>> literally I would go on I would

literally go on ChatGpt and I'd be like,

"Tell me what an opportunity is that has

great revenue retention. Here's all the

industries I've worked in. Here's all

the skills. Where is something where I

can get insane revenue retention that is

five times more likely to sell and be

worth something and make me, you know,

maybe it's $50 million compared to these

businesses I'm in right now." just like

look at the list and then think like

>> okay well

>> like where do I have a 30 to 50% shot of

success

>> I mean like I I don't know how to

explain this like I have never felt

ready before I try something I'm always

like I have no [ __ ] idea if this is

going to work I could totally fail this

could totally be terrible

>> and like that's going to happen no

matter what it's just like you're

picking things that are small and here's

the thing that's even worse you said you

want to sell a business well then that

means you have to stay in the game,

which means you have to be challenged,

>> right?

>> If you pick something that you know

you're going to win, this is like where

high performers just die. And I can tell

that you're a high performer, is that

you pick something that's too easy

>> and then you get disengaged and then

you're like, I can already play this out

and know where this is going to end up

and I don't want to go there and then

you don't even want to see it out to

sell the thing because you already know

where it's going to go and it's not

interesting.

Do

>> you have anything you would add?

>> No, you're right.

Watch. Yeah.

>> Yeah.

No, last year I I remember I was at the

10K rate and I I watched a bunch of

Alex's videos and he just said double ad

spend and keep the course. And here I am

a year later, double bad spend, kept the

course and I'm now I guess just got to

find a you know higher rejectivity. So

>> also I would just say this, you're going

to learn more trying something than you

are going to learn thinking about it. We

don't learn while we stay in our heads.

We learn we get out into the world and

we do stuff. So like think about a way

like how could I test these

opportunities? Can I be an affiliate of

a company like this? Could I be an

affiliate to an insurance company? Could

I just come in and be a contractor to

help build up this X company? Like you

could literally just find one big

client. Be like, I will do your in-house

marketing just so you can learn the

business.

>> Yep.

>> Dang. I would love to do that.

>> And use the cash that you have as your

savings so that you can be aggressive

with your learning,

>> right?

>> As in like that's your nest egg so you

don't have to worry about living.

>> Yeah. I I've been I've been doing the

whole like Chipotle thing, frugal thing.

I saved up my first 100k

cuz of you guys. I appreciate you guys.

No, I appreciate that.

>> Appreciate you, man.

>> Awesome. No. Okay, I'll do the thing.

>> All right. Appreciate you, dude.

>> You guys see later.

>> Yeah,

>> we have another caller.

>> Oh, a caller. We have a a ringer is at

the door.

>> Someone has a ring.

>> He rang.

>> Ancient king of Haron, Hermosi, your

relative. Uh the straight of Hormuz is

uh is is one and the same as my family.

Yes. Hormuzie, which means coming from

in in Farsy. E means you are somebody of

that area.

>> Who do we have on the line?

>> Devin.

>> Devin. What up, Devin?

>> Can you hear me?

>> Yeah, we can hear you.

>> Okay, cool. Cool. Cool. You get you guys

can hear me. I was I was wondering. All

right, bet. Um, so I've got a small

YouTube channel, like really small, and

I I just don't know where to go other

than just make more content.

>> What do you sell?

>> I've watched y'all stuff.

I don't have anything to sell. That's

>> What do you make YouTube about?

>> Should I have a product?

>> What was that?

>> What do you What's the YouTube about?

>> It's uh hunting, fishing, outdoors. I'm

an outdoorsman.

>> Okay.

>> Oh, that's cool. And how many uh

subscribers do you have or views do you

get a month?

>> Uh so I've got 2,000 subscribers.

>> Okay.

>> And uh last in the last 28 days I've

gotten almost a quarter of a million

views, mostly from shorts. I haven't

posted any long yet.

>> Okay.

All right.

>> I post.

>> What do you do to make money?

>> Yeah. How do you live?

>> Uh I have a job. I work 40 hours a week.

What do you like? What do you do though?

>> Put the damn

I make lawn mower parts.

>> Okay.

>> Nice.

>> All right. Um Okay.

I I think you're early.

>> Mhm.

>> I think you're early. So, I do think

that you should start making some longs

because longs is what's going to depen

your kind of influence with the

audience. You want to you want to

demonstrate more expertise around

hunting. Um, and if you're like, I don't

know how to do that, just take three or

four long con, sorry, short concepts

that were good and just loop them

together. Not not literally loop them

together. Just, you know, make a video

that covers each of those uh each of

those concepts, you know, in tandem and

work your way to a five or eight or 10

minute video.

>> Mhm.

>> And I would start doing that. I just

think you're I think you're early, dude.

>> Okay. So, just basically just do more.

>> Yeah. And and do better, too. You know

what I mean? Like I think you got you

got to learn a little bit more about the

content game. Um,

>> yeah,

>> I would say like what right now are you

spending all of your time making content

for YouTube outside of work?

>> Just about. Yes.

>> Yeah. And how long

>> every minute I can spare, I do.

>> No, you're good.

>> How long have you been doing it?

So, I started the channel several years

ago and kind of got very very

inconsistent and then uh about two

months ago I decided to really get after

it.

>> Okay. Well, okay. I think that we can

both tell you this which is like YouTube

is a game of consistency.

>> Like that's just that's how the platform

works. So, I think the biggest thing

that you can do right now is just be

consistent. Because if you look at like

how to go from just like okay or

mediocre to just like good solid, it's

consistency. And then if you want to get

to like great, it's like continued

improvement while being consistent.

>> So I guess the question is how many

shorts and how many longs do you commit

to making per week.

>> So I was at one point I was doing one a

day and I was it was great, but I'm kind

of back down to like three a week. Three

to four a week. You mean for the shorts,

right?

>> Yes, sir.

>> Yeah. I think I mean you do have to do

more and you have to do it consistently.

And I would just tell you that like

right now you're not multi like just for

your own self do not consider yourself

having done this for years. You've been

doing it for 8 weeks.

>> Yes.

>> So you're super early, man.

>> Yeah.

>> You're super early.

>> Okay.

>> So I just like I wouldn't even think

about monetizing it right now. Like you

just want to take 5:00 am to 9 a.m. and

5:00 pm to 9:00 p.m. your 5 to9

beginning a day end of day. And I put

all of that into making sure no matter

what I got out I get out one short a day

and then on my weekends I'm going to

make sure that I get at least one long

out.

>> Okay.

>> What's your goal?

>> One more question.

>> What's my goal?

>> Yeah.

>> Do you want to quit your job? Do you

want to build a company?

>> Yes. So, I believe if I can just replace

my income from my job with this, then I

could scale it up. And uh I guess my

number would be about 10 grand a month.

>> Okay. Can I ask you something to be

super honest?

>> Mhm.

>> What stops you from making one video a

day like you were? Like what what

behavior?

Um mostly

just life gets in the way or I get to

talking and to somebody and then sun

goes down and now I'm out of daylight.

>> So if you if you want to ask yourself

how to be consistent, the question is

how do you stop the things from

occurring that make you inconsistent?

>> So it's like do you have the right

people surrounding you? Do you have

yourself in the right environment? Like

those are the things that I think you

want to be thinking about right now

because I know like for myself or for

Alex when we were first starting out and

like making just trying to get into

business, I had to put myself in an

environment where it made it easy to

achieve my goals, not hard, which also

meant surrounding myself with people in

a routine that made it easy.

>> Okay.

>> Do you want to know how how I define

commitment?

>> How?

>> The elimination of alternatives.

You have to get rid of your other

options.

>> And I don't mean like you need to quit

your job. I mean everything else that is

not you make if this is what you want

and it's like you can only know that.

But if this is really what you want,

then it means that you have to say no to

everything else in order to truly say

yes to this.

>> Because every time you say yes to

something else, it's saying no to this

thing that you want. And almost always

the things that we want to say yes to

now are short-term long-term. We say yes

in the moment because it gives us a

short term short-term good thing, but it

prevents us from the long-term bet uh

long-term great thing.

>> Okay. So,

I was also thinking, should I post on

Instagram, Facebook as well?

>> I want you to be consistent with YouTube

first man.

>> All right.

>> Give me 12 weeks of consistency. You

make one long and you make seven shorts

12 weeks in a row. You do that and

you're like, you know what? I got more.

The thing is is right now you have to do

that volume so you can become more

efficient. Like you have to feel the

pain of the inefficiency of being like,

man, this is a lot of work. Cuz when you

do that, all of a sudden you'll start

getting faster, you start getting

better, and your work output and

capacity will go up.

And then you'll free up the bandwidth

because you got more skills, you got

more efficient that you can start

looking at, you know what, I'm going to

repurpose this on Instagram. I'm going

repurpose this on Tik Tok or whatever.

>> Okay. It's also like just like really

thinking about this in order to build a

business to replace your income like you

want to build that confidence and

confidence is an output not an input.

The input to confidence is becoming

incredibly consistent with something. So

you get the experience which makes you

competent and then it leads to

confidence. And I think like in general

if you can't stick with a commitment

that you make to yourself then you you

degrade the trust you have with yourself

every day. And so like anything you do

it's not going to come out as good as it

could be. It's always going to be

harder. it's going to take longer if you

don't repair that trust with yourself.

So, I think like right now, if you're

just consistent with the posting, like

that is going to make you not just

better at business and content, but just

a better person for yourself, a better I

would say like partner to yourself in

doing this.

Mhm.

That That's kind of funny because I was

watching one of Alex's videos where he

was talking about consistency and how it

how you get better by doing the thing

over and over again. So, I started doing

that and I've already noticed that

trend.

>> It's a I think right now it's good to

steer a little bit. Like I get obsessive

over doing things consistently. Alex

knows this. Um but I think you can steer

a little bit in the obsessive uh

direction right now. now I think it'd be

good for you and then you can course

correct that later

>> and expect the fact like expect people

who are normal and around you to not

understand expect them to think it's

weird expect it to not look cool like

everyone goes through a cringe period

like it's going to be lonely because

you're trying to do something that's

very different and I make that content

where I say like in order to be

exceptional you have to become the

exception you're going to probably be

surrounded by the majority of people in

your life who don't want this aren't

interested in it think it's dumb think

it's stupid think It's you trying to be

famous, you thinking more of yourself

than you really are, all of that stuff.

And you just have to just put that in on

the shelf and get back to work.

>> Cuz like either they'll be right or you

will. And you've got a long time to be

right.

>> That's kind of what I was. All right.

Thank you.

>> Yeah. They'll be right for now and

you'll be right for good.

>> Yes, sir. So, just keep keep on

>> keep on keeping.

>> Keep on, baby. Keep on.

>> Thank you very much. You guys are

awesome.

>> You bet. I appreciate you, man.

>> See you.

>> All right, let's look at uh

>> All right, let's we got here. I don't

know. I was like,

>> yeah, I sold it for plastic surgery.

The [ __ ]

I'm tired. Okay,

I filmed content before this.

>> Oh my god. horse with blinders only run

with other horses? Maybe. I don't know.

How do I go about hiring the right

person? That is a very short question.

That's a very long answer. Um,

>> be the right person.

>> Yeah. Well, there you go. There's a

short there's your short answer. Wow.

Wow. Must be nice. Uh, I run an agency

for churches. They have all cameras and

equipment but no editors. Basically, a

clear marketer for taking for back-end

media optimization. How should I market

to ministries? Honestly, I think they're

pretty easy to market to. I think I

would start with outreach first. gets um

I get my first 10, you know,

testimonials so I can uh and then ask

them for referrals. Um and then once I

have that, once your capacity gets

taxed, you can ask them to start paying

you because you can't keep doing it and

they're going to start getting hooked to

the fact that they had good media. After

they have uh good media, you'll convert

some of them. Some of them you'll have

to drop with the excess capacity. Then

you can start doing outreach using the

testimonials from the 10 people that you

did it for free for. And in that

process, you'll learn how to do the

game.

I feel like in fitness content, it's not

impossible to post daily, but I keep

running of ideas to keep up with seven

days a week. Here's my favorite way to

make content. Um, look at all the

content on fitness that you [ __ ]

hate. And then ask yourself, why do I

hate this so much?

>> There's your piece of content. I do this

all the time. People will send me like,

"You should make this piece of content."

I'm like, "Ew, it's disgusting." And I'm

like, "Why am I so disgusted by this

piece of content?" And I'm like, "It's

so cringe. Why?" And then that is a

piece of content in itself. So like look

at what you see that why you're like,

"Why is this so bad?" and then that

becomes the content that you can make.

It's like the best hack I've had.

>> And I'll piggyback on what Laya said

when she's saying that. She's not saying

dunk on people. She's not saying make

reaction videos where you [ __ ] on other

people. You pro like anybody who's

followed our stuff like Leila and I we

do not like that's just we don't operate

that way. I think there's enough I think

there's enough hate in the world. I

don't think I want to add to that.

>> Um so I just like you know tall poppy,

right? You can drag everyone else down

or you can lift yourself up. Um, we are

very much on the like just make better

[ __ ] and if you keep making better

stuff, um, you will be known. I don't

think there's any point in in [ __ ]

on others. But it is good for for

inspiration.

>> Yeah. Thinking about it.

>> Yeah. Exactly.

>> Yeah.

>> Cool. Um, I have an event company and

has only been established for 2 months,

but our competitors have been here 15

years. How do I get clients to trust me

since they were comparing us to our

competitors?

You're going to have to Okay, so I will

give you the classic um small dog frame.

All right, so if you were to enter the

gym space, you would have to compete

against gym watch. And as a reminder,

when I entered the gym space, I was the

small dog, not the 800lb gorilla.

>> Dude, we were the small ones.

>> The small the teeniest of dogs. The itty

itty bitty.

>> Everyone compared us to everybody else.

It was like every call I got on, it was

like, "Well, what about this person?"

>> Yeah.

>> Every time. So you have to you have co

comparison only works in the vague not

in the specific meaning they're

comparing your company to their company.

You need to reframe the comparison as

comparing you to employee number 86 at

that events company. So it's like listen

they've been here like you want to you

want to lean into it. You want to be

like listen they've been here longer.

They've got they've got way more you

know track record and experience. I was

like, "But you're just going to be a

number to them, and if there's a

problem, you're gonna go to account rep

number six, and you're like, and they're

not really going to care." And so, it's

not, "Is my company better than their

company?" The question you have to ask

yourself is whether I'm better and more

motivated to help you have an amazing

event and experience as a new business

owner who will do everything to succeed

compared to their hourly or salaried

employee who clocks in and clocks out

and doesn't care. That's who you need to

compare against. And if that's the bet,

I'll win 10 times out of 10. That's the

reframe when you're starting out.

All right.

Could you please explain how to decide

between a monthly Oh [ __ ] You a monthly

subscription and what was it?

>> I missed it.

>> And a onetime payment. Yeah. Yeah. Okay,

cool. Um, it's actually just a math

thing. So,

it's going to ladder up to something

called EPC's, which is earnings per

click. All right? And so, you get your

earnings per click by say you have two

lines on an Excel sheet. So, this is

pure math. 100 clicks to offer one, 100

clicks to offer two. And so, if offer

one gets 100 clicks, and let's say you

convert 2% of those clicks. All right.

I'll just do the math in front of you.

>> You love when you do math.

>> Yeah. All right. Right. I'll be fast

with it. All right. So, we get 100

clicks on both of these. We've got A,

which is our subscription, and we've got

B, which is our lifetime. Okay. So,

let's say our conversion rate on this is

2% here. And let's say our conversion

rate on our lifetime offer is 3%. On the

page, whatever. All right. Now, our

price for our subscription is going to

be, let's say, $10 per month. And let's

say that our lifetime offer is $50

uh one time. All right, that's it. Now,

our churn.

All right, our churn here, let's say

that our churn on this is 10%. Okay,

that means our LTV is going to be $100.

So, if we have two clicks, 2%, two

clicks, and we have 100 LTV, then we're

going to make $200 in total on 100

clicks, which means our EPC is $2.

If we're going through this one, our

churn doesn't matter because it's

lifetime. lifetime value is going to be

$50. And so we got three clicks, which

means we got $150.

So our EPC here is going to be 100 divid

uh 150 divided by 100, which is I don't

know, one and a half, I think.

So this would be our winner. All right.

Now, the big caveat here is that it will

take you 10 months to break even on that

first offer versus getting five times

the cash up front. So, there's going to

be a cash conversion cycle issue um that

you're going to have to deal with. Now,

these numbers actually don't make sense

because realistically you might have

higher conversion at a $10 price point

than 50. Then again, people don't like

monthly recurring compared to a onetime

payment. It could be it could go either

way. And so, if you're like, how do I

pick which one? You test both. You look

at your earnings per click. The one that

has the earnings per click that's higher

is going to be the one that will make

you the more money over time. And as

long as you have the cash flow to

sustain that, that's the one you do. If

you don't have the cash to sustain it,

then you have to start re-riggering the

money model. Read the green book. That's

what it was all about.

>> Boom.

>> Snapshot that.

>> That's right. Uh, Hormosi Hopline.

>> Caller number 27.

>> Next caller, please.

>> Did they hung up? They were like,

>> "Too hot." They were like, "It's too

hot. Getting out of the kitchen."

>> Did you almost hang up?

>> Do you almost hang up? Do you almost

ghost us like Patrick sees?

>> Can you hear us?

>> Hello.

>> Yeah. What's up, man? Tell us about the

business. What's going on? What's the

What is the problem that you want to

solve today?

>> How's it going, guys? You're still

alive. You've been killing it.

>> All right. Tell me, man.

>> What's your name?

>> So, uh, so I run, uh, my name is Dan. I

run a center for seniors and the

disabled. It's a day program.

>> Okay.

>> And um most of our members um are

basically insurance based.

>> Yep.

>> So

>> you pick them up, you daycare them for

the day, you drop them off and you you

get day rates, right?

>> Correct. Correct.

>> Yep. Give them a meal. And the biggest

issue that you have is that sometimes

people don't want to uh come with you.

Is that the problem? Basically biggest

issue is is growth. Um and in our area

we have a lot of kind of bad actors who

are offering kickbacks and payments.

>> Yeah.

>> Um to join the service even though it's

completely illegal because we are a

federally funded program.

>> Yeah.

>> Yeah.

>> Super familiar.

>> So you're struggling with growth because

you have illegal actors.

That's not the that's just an easy

excuse to to say, you know. Um, but

>> kind of the the difficulty is focusing

on we kind of have three primary people

to sell to. It's the actual person

that'll join the program.

>> Y

>> uh a caregiver, either a mom, a kid who

>> family needs this.

>> Yeah.

>> Or referral sources like doctors, social

workers. So, it's basically these three

archetypes of people that that we need

to sell to. Um,

>> which one do you uh succeed the most

with?

>> It's a good question. Um, the referral

sources always seem seem great because

they have access to a ton of people. Um,

I do inerson lunches with them and do

the whole song and dance, but

>> to get a referral, it's very difficult.

Uh because once again people are also

paying for referrals. So

>> but that's an excuse which we said

earlier right?

>> Correct.

>> Okay. So let's just let's just cast it

out of your vocabulary for now. You're

going to not do illegal things, right?

>> No, absolutely not. We've been in

business for 20 years, so we're not

playing.

>> We too have competitors that do illegal

things. So like it's like it's a it's a

it's like it's just something that's

taking up room in your mind because you

brought it up twice already.

Absolutely.

>> Right. Okay. So, you're saying that you

have these song and dance conversations

and you're saying it's hard for you to

convert from them saying, "Yes, you can

come to our facility with a bus and pick

up people and knock on doors."

>> Um, I'm sorry, I didn't hear that part.

What did you say?

>> So, when you're doing the pickups, I'm

guessing you have a bus and you grab

people,

>> right? The pickups are from their house.

That's when they've already become a

member. Are you doing are you doing

multif family though?

>> Uh no. Usually each location is is a

particular person.

>> It's not like uh

>> we're not picking up from like one place

like

>> hundreds of people. It's just each each

stop is one person.

>> Yeah.

>> And you've owned the business for 20

years.

>> Yeah. Well, I joined about eight years

ago as a partner.

>> Okay.

So, can you take more customers than you

currently have?

>> Absolutely. We're We could take about

>> double if not triple.

>> Okay. So, you're demand you're demand

constrained right now.

>> Yes.

>> Yeah.

>> Okay. Demand constraint right now. So,

people don't know you exist. So, we have

to do more advertising in some way. So,

you say you have these three avatars. Do

you know what one of these avatars is

worth compared to the others?

>> Uh in a number sense no, but let's say

if you advertise to one caregiver that's

one member and potentially a doctor's

office is like 200 potential members.

>> That sounds like pretty simple math to

me. So what stops you from going to the

the physicians?

>> Nothing. I I go to them, but to get

consistent referrals is surprisingly we

get referrals from people that I've

never spoken to. Like we're in the local

community, we're very well known.

>> Yeah.

>> But like they know us. They know our

name. Yeah.

>> But in terms of actually getting getting

a signature and getting a person to

join,

>> it's very

>> So

>> I don't have uh confidence in that.

>> You're good. In the lead's book, which

hopefully you've read, right?

The chapter that I want you to learn

like the back of your hand is the

affiliates chapter because that's

exactly what this is. So these

physicians are your affiliates and

you're going to need like them just

saying yeah sure we'll refer people to

you is not going to do anything right

which you've already experienced.

>> Yeah.

>> So I prefer a launch then integrate

strategy which is great. Why don't we

send an email to all those people or if

you want I can hang out at your office

and after you meet with a a patient I'll

meet with them after you

>> that's interesting

>> great

call fam

>> yeah so you want to launch which is like

if you can get them to one to many uh

tell their audience you know about you

and I the audience it is obviously their

patient base but like that would be

thing one that's the easy thing uh

integration is what you want to have uh

with an affiliate which is how can you

work in their existing flow so they have

minimal change in business but it ends

up promoting you

>> so that's what let me send somebody to

your office so that they can take this

for you right you could also say like

you're worried about kickbacks you can

rent space if you wanted to and say hey

uh I'll pay you $1,000 a month to put up

a little a little kiosk here and that

would be different than a kickback

because it's not based on performance.

>> Interesting. Interesting. I love it.

>> Wonderful.

>> You should uh you should go into

business coaching.

>> I wonder if you could do this

professionally. Um dude, appreciate you,

man. Does that help?

>> Yeah, absolutely, man. Thank you guys so

much.

Congrats on the the new release, by the

way.

>> Thank you, man. I appreciate it.

>> All right. See you, bud.

>> Ooh,

>> I got to go.

>> You got to go. Fine. All right,

everybody. Are you like permanent go or

or part-time go?

>> Yeah, I'm permanent go.

>> Permanent go. All right, everyone say

bye to Ila.

>> Bye.

>> She's leaving. She's She's grown

disinterested in me. She's She's off to

greener pastures.

>> She says my hair can't My hair long hair

don't care.

Um,

let's see. Let me let me pause one of

these guys. All right. Went from

profiting a million dollars a year. Oh,

too long. Uh SAS land page CRO. How do I

fill my days with work to get as many

clients as possible?

Okay. So, you need to get more

customers. Uh I have inconsistent

clients since I'm reliant on LinkedIn

inmails 50 to 100 a month. Um okay. I

mean, dude, you just have to you have to

like everybody,

if you want more people to know about

your stuff, you have to let more people

know about your stuff, which is what I

wrote this entire book on, which is

leads, right? And right now, there's

only three things that you can do as a

human being to promote anything. You can

do outreach, which is one-on-one

communication, you can do posting

content, or you can run ads. Now with

those three things, you can go get

customers, you can get agencies, you can

get uh employees using that same skill

set, or you can get affiliates. All

right? And so right now, if you just

look at your calendar, if you are not

doing outreach,

>> million dollar money,

>> um if you are not doing outreach, you

are not running ads, or you're not

posting content with the majority of

your day, at least four hours a day, if

that is the constraint of your business,

then you are not doing your job. So you

have landing page CRO, awesome. You fill

your days by spending four hours per

day. So the schedule that I like to run

if you are starting out is I split the

day into three chunks. All right? And

it's all 4hour chunks. And if you're

like, "That's 12 hours a day, Alex."

Sure. You can always just do less and

take longer to get to your goals. That's

your prerogative. All right? So you've

got 4 hours, 4 hours, and four hours.

Okay.

So I'm going to spend the first four

hours of my day promoting

All

right. The next four hours of my day,

I'm going to spend building. And when I

say building, there's always collateral.

There's stuff you have to put together.

You have to install something, whatever.

And then I'm going to have delivery. And

so, this is how I split my day so that I

can get ahead of what I need to do. And

if you promote what you have, you build,

and you deliver, you're going to And

promotion is going to be marketing and

sales. All right?

Now, if you're like, I've already built

everything, then you can double this up

and make it eight hours for promotion

and delivery. But in the beginning, the

thing that the thing that you are

fighting tooth and nail against is

irrelevance. No one knows you exist.

That's the issue. It's not your market.

It's not your product. No one knows you

exist. That's the issue. And so, you

have to fight. And by fighting, you have

to fight against everyone else who's

fighting for your customers attention.

You have to become more interesting. You

have to get in more inboxes. You have to

get on more news feeds. And by doing

that, you'll get more people that you

can convert into customers. And if

they're not interested in your stuff,

and if they're not interested in your

stuff, you need to give them a better

reason to get interested in your stuff,

which is going to be a better lead

magnet, a better reason to give you the

information. Someone said, "This is

disconnected." Am I Am I hearing

correctly? Going to turn on and off your

headset. Is it on and off? I'm good now.

All right. Dylan.

Dylan.

Dylan is killing

so dark.

>> Hey, can you hear me?

>> Dylan,

>> what is the biggest problem of your

life? Yes, I can hear you. What is the

biggest problem in your business right

now?

>> I'm trying to figure out whether I

should push or I should pivot and I've

been having a lot of trouble pushing and

that makes me unsure.

>> Okay. The only reason that you pivot is

if a fundamental underlying assumption

that you came into the business has been

proven untrue.

If I want to start a uh you know dog

uh lash business where it's like I sell

lashes to to dog dog owners for their

dogs and I think there's going to be a

big market and no one wants it then that

would be something I say I'm going to

pivot. If it's uh you know I already

like are other people making money in

your industry selling what you sell.

>> Yeah. Yeah. We got it working. We got to

a million dollars a year in revenue and

then 500k a year in profit, but then I

uh I had a partner and I lost

everything. Long story short, and I the

pro we buy and sell comic books

>> and the problem is we've been having

trouble getting enough high value deals

where money can be made on the calendar.

It's tons of sellers with like 50 cent

comic books and not enough sellers with

five and $10,000 collections.

>> Okay.

>> Do you think that there's not that many

that exist or you just don't know how to

find them?

It's like 1% of our leads and I've

already looked at all of the ads in our

industry and they've all like it's just

mining through a ridiculous amount of

leads to get like the few gems.

>> Yeah. I mean to be fair there's a lot of

businesses that are like that. So that

not isn't necessarily a bad thing. I

mean you had 50% margins on a million

dollars in business. That's not bad. Um

so I don't want to like you I don't want

to dissuade you from necessarily doing

something that could potentially be

lucrative. Um, what

you make how much on the average deal

and how much does it cost you to get

leads?

>> We're we've CRO optimized a [ __ ] out of

landing pages. We got funnel hacked.

Like I know the page is good. We're

getting 600 leads a month at $10 a lead.

>> Okay. So, it cost you six grand ads.

>> Okay. Got it. And then six of those

people are potential good customers,

right?

>> Yeah.

>> Okay. They're averaging I'd say the

average deal we want is at least two

grand, but we've had some record months

where we got some whales that are 50 or

100K and that's what makes me like

interested.

>> Okay. I think that your issue is that

you're dealing with insufficient volume.

So volatility is a symptom of

insufficient volume. So when you have

like I have some big months and I have

some small months. If I were to say over

a year, do you think you'd have a whale?

Yeah, we have we'd have multiple wheels.

I I want to 5x ad spend. Yeah.

>> But then I'm worried that it's not

efficient enough and that

>> the sales team has to be too good and

selling like or buying comics. Like

training this I' I've been through all

your trainings like training this where

we're buying the comics versus like

collecting money has been challenging

from a commission and tracking

perspective and training.

>> These to me these are not pivot

problems. These are just like these are

business problems.

Like every business has things that are

hard

and the fact that you did topline. Yeah.

If you did a million top line and

500,000 bottom line like to me I'm like

okay so you've already proven that this

works.

>> Yeah. I just keep thinking like this

I've had trouble getting this past me

and I see what you did with gym launch

and I can't help but think like oh [ __ ]

we could scale a high ticket team

teaching all this stuff.

>> Teaching what stuff?

how we run the ads and the setter

scripts and the closure scripts

>> for comic books or for just selling

stuff in general

>> for for buying and selling comic books.

>> It's tough, man. Um I'll tell you why.

Like All right, maybe maybe I'll like

tell you why this is tough. Whenever I

hear someone say, "I'm really struggling

to make a business work, so I'm going to

teach other people how to do this thing

that I'm not doing well with." It like

makes me like,

you know,

>> I'm not struggling to make it work. I'm

struggling to scale it to the point

where I, you know, build it to a multi

multi multi-million dollar business with

multiple drivers, not just me doing it.

>> Okay. Well, then is there a way that we

can enable

is there a way that we can like arm and

like make an army of people who are like

running your play and then you can

somehow like

not not get a percentage of the deals

that they're like what would they

struggle with if you were to show

somebody how to do this? Like what would

be the biggest issue? Because if they're

if they're being efficient with their

leads, right? they're spending

whatever. Let's say they spend $500 a

month instead of 6,000, right? So,

they're going to get 50 leads.

What are they going to struggle with?

They struggle with they don't know how

to get leads. Then they don't know how

to work the leads properly. Then they

don't know how to set appointments. Then

they don't know how to close a deal.

Then they don't know how to properly

sell the comic books. Then they don't

know how to just like keep doing it

again and again. Is there a way that you

could just like give them a menu and say

like like if you could take care of the

them like can you buy the comic books

from them and then resell them and just

basically have them basically

decentralize the sales and then you

still flip them because that would

probably be I would imagine getting the

ability to sell the comics for a lot of

money would be the hard part is my

guess.

>> Yeah. So acquisition so getting more

quality inventory think uh gold versus

scrap metal sure is like analogy like

getting is the definitely the constraint

of the business. The problem is getting

those high quality deals on the calendar

versus just regular you know regular

stuff on the calendar you know where

it's like you're buying tons of 50 cent

comics like that's that's been the

constraint. So, even if we tried to

build like an agent model, like

I'm worried that a we still have to get

those leads on the calendar and

violently spend on ads. And then b,

which we can absolutely do, but and I

and I and I want to do that, but then b

it's like they can screw us. And I'm

worried about like it's hard to track

like how much you can make on this deal.

It's very subjective. It's physical.

It's not like revenue where it's like

clear-cut as to like how much it made.

You know what I mean?

>> Yeah. Yeah. I mean, it's a used car

business.

>> Would be worth it.

>> Yeah. It's a used car business. It's the

same thing. People come in with a car.

It's used. Now, the issue there is that

this Kelly Blue Book and there's some

standards there, but like I understand

what you're saying. Um, I mean, you kind

of run a digital pawn shop kind of. Um,

okay. So, what do you do? I mean, I'll

say this. I think you have a good skill

set. I'm not sure if flipping this into

a business opportunity is the right

play. Like, that feels me. I think you

could sell it, but you know,

it's I like I it makes me, you know,

>> yeah, that's why I haven't done it. Like

I if I want to go bisop, I want to go

B2B and I want to scale it to something

like Gym Launch. And then I think that

TAM is too small and I think it has to

be all buying and selling businesses

altogether. And I think I'm not not a

good enough leader yet. I think I need

another two years. And I I'd rather just

own the whole market because I know that

there's two options. you said between

you could own the whole gym market or

you could just license it. So I think I

think I go either way. I think I just

keep running into challenges

>> scaling it,

>> dude. But I just I just want to

encourage you in saying this like

>> dude, business is [ __ ] hard, man. I

know you know that, but sometimes it

takes someone from the outside to be

like, "Yep, that's that's how it is." It

it just like there's hard [ __ ] you

know? Um do you make any content?

Uh, no. I've been all focused. No,

honestly, I haven't because I've been

all focused on trying to solve this

constraint and trying to be disciplined.

Even though I want to start like 25

different things, I've been trying to

solve this one problem.

>> I do think that you building making some

content because like I think comic books

is definitely like a super contentable

like it's super easy. You can show them

people like watch it because it's cool.

All of that kind of jazz, right?

Um, but I think it could it could

generate demand for you on the buy side

that would just decrease it would offset

CAC and it would start to build the

brand overall which is how this thing

becomes long-term a more sellable asset

and how like you're like I want to own

the space that's how you would own the

space

>> and the problem is so the problem is we

run ads on a national level like the

logistics of even buying those deals

that are past local is like like a

traveling circus. so cumbersome and I

can't help but think like this is not I

don't think this is the easiest business

to start but I do think it's the one I

have the highest advantage in and that's

why like despite health issues and

moving everything twice like I haven't

quit

>> you're not on your third time yet so

you're good two is two is the is the is

the sweet spot you know

>> all right I want to help you though um

so here here's here's here's what I

would I would consider as next steps and

I will say this before I get into it um

push and pivot is an eternal personal

question. It's like how much do I

consume versus invest? There is no right

answer. How much risk am I willing to

take? Right? Those are those are

personal questions. So, I just want to

be clear about that. This is me saying

if I were potentially in your shoes,

what I'd consider. I would see there's

two paths. One of the paths is not the

bisop. I would say option one is you

double down on this and you do own the

market. You make the content. You figure

out the sales stuff. You probably need

to increase your ad spend so you can

decrease the volatility. If you were

spending 18,000 a month, that one whale

per quarter would be coming in one time

per month. And you can just know that

law of large numbers, it would be there,

right?

That's path one.

>> That's what that's what I want. I want

to do that. I want to do that. And then

it's just a question of like getting the

rorowaz up high enough and I've tried to

like downell the list of course and I've

been struggling with the rorowaz the

efficiency there.

>> No, I hear you. But when you get your

whales, your rorowaz is really good,

>> right?

>> Yeah. Yeah. I was like, "Oh [ __ ] we can

make a lot of money with this."

>> Again, I would just look at So, okay,

I'm going to I'm going to zoom out

because it's going to be important point

for everyone. So, you spent $72,000 that

year that you did a million dollars in

sales right?

>> Yeah.

>> Okay. So,

>> No, no, no. But it probably it would

probably be it would probably I'd

probably spend 15,000 a month on ads and

do a million sales.

>> Okay. So, you spent $200,000 or 180 that

year and you made a million dollars in

sales. So, you have 5 to1 minus the cost

of acquisition, right? But the cost of

acquisition I'm guessing is not very

much considering you spent whatever uh

because you still made 500,000 in

profit right?

>> Sure. Yes.

>> Okay. So the issue is like okay you're

spending 70 currently. It's like we need

to triple it and just even if you're

tracking is not like this is like

getting a data infrastructure is just

part of scaling.

Do we need a money model to downell the

99% that aren't a good or the 95% that

aren't a good fit? Like a $97 appraisal

and then we can liquidate gas in that

way.

>> I love that.

I love that. Include with the appraisal

some sort of digital thing um that they

would find cool or valuable.

where I just like call a hundred people

until and like give a triple guarantee

until they buy it and it's like like

this works. Like I I will like if you do

not get at least $300 of value, I will

it's free. Like yeah, I like I've tried

this so far and they're like they don't

want it. Like they're too curious and I

can't help but think like there is

something that liquidates this ad. Like

I know it's there.

>> Yeah. I would just ask them what they

want. It's an easy way to do it.

>> But all they want is me to buy their

comics and if their comics aren't good,

it's like a problem. Yeah, they're still

interested in something. Um, and it

might just be repositioning how that So,

the the the $97 offer that you have

tried and no one buys is what?

>> So, I tried a course for 37 which was a

which was we'll show you how much it's

worth and how to sell them yourself and

they hated it. You converted at 1%.

>> And then I started calling a few people

here and there.

>> Was this a selfquidating? How about

this? How about you give uh so one is

you can give like you give priority

number one um to those people. It's like

listen we have a lot of people who have

comic books you can jump to the front of

the line by doing this right. I do like

I do like the idea of it's 97 and um if

we buy your thing we'll we'll credit it

towards it kind of thing.

>> Yeah. Yeah. I've been try I've been I

tried the course for years and I wrote

seven different VSSLs and I'm like

either this this traffic doesn't won't

convert or I just haven't done anything.

>> I don't think it's I don't think it's a

course angle. I think it's I think it's

about the sale, right? So you've got

risk, you've got ease, uh and you've got

speed, right? Those are the elements of

value.

And so speed, it's like I can see you

first, right? The risk component is I

can guarantee that I see you, which is

like not like you'll go to the top of

the pile and I guarantee that you'll get

it you'll get your response back for

from us within a day, right? Something

like that. Um

risk reversal is and you know if and

when we do it and it's not a fit like

we'll give you half of it back or

something.

So it's not an appra. So we we we score

our leads automatically so we can have

our best leads go to the closer which

right now is me. But we have 70% or form

DQs. Do we make an offer on the landing

page to the form DQs to

>> Yeah.

>> Yeah. I mean

>> video sales letter.

>> We're also I mean there's this whole

idea of like we need to make a selfating

offer. There's also just the like you

got five to one last year and you could

just spend the money again and just know

that your your volatility will happen

and be counteracted with more more

volume.

>> Yeah. I just know that money's tight as

I'm rebuilding. If I just nail this one

liquidation thing, we could scale the

[ __ ] out of it. And to me, like that's

the thing.

>> Yeah. Then I mean then you like this is

the work of business.

>> Let me let me frame this question

differently. Then I got to hop to the

next one. But if let's what do you think

would happen if you can get the leads to

offset if you can offset CAC or even 50%

of CAC with some sort of selfquidating

offer what would it do for the business?

>> Oh my god. We can start bringing in

really really good people and and scale

it like that more.

>> And so so let me so let me frame it for

you. You only have to solve this one

thing and in so doing can build a large

$10 million plus business that's

sellable.

>> Yes. So, it's a it's a instead of

thinking like, man, this is a hassle.

It's like, yeah, and that's why you're

going to create $10 million of value

when you solve it. Not bad.

>> No, but I've been trying it for two

years. I the downell course didn't work.

I just

>> Well, of course, I don't know if a

course is the way.

>> You're right.

>> Like if you kept trying to resell a

course, it's like that's to me that's

not trying for two years. It's trying

the exact same thing over and over

again. Like you're trying to you're

trying to persuade better on a course

when that's just the wrong offer.

>> So I have to

>> you need to find product market fit for

something else that somebody who has

that wants.

>> So I need to talk to every single

customer forever.

>> Or maybe it's a listing fee, dude. Yeah.

Maybe it's a listing fee. Maybe it's a

combination of appraisal and listing.

So, it's like, listen, we can't buy it,

but we have a big network of other

buyers, and for $37, we'll send it to

our list of other buyers to see who's

interested.

>> Okay, I'm going to try it.

>> Okay,

>> I'm going to keep doing this until I

figure it out. Thank you. You're the

best.

>> Appreciate you, man. No, you're the

best, dude. Appreciate you.

>> All right. What do you suggest for

someone who's better as an owner? Uh,

nice quick quick click on that one,

Duke. Uh, what do you suggest for

someone who's better as an owner rather

than an operator? Own, baby. To be fair,

when you say I'm better as an owner,

Daniel, that's like saying I'm better at

doing nothing than doing something. It's

like if I bought stock and it's like,

dude, I'm an exceptional Apple stock

owner. Like, I'm so good at owning

things. It just means that there's a

piece of paper that says that the

profits go to me. Um, which I find

hilarious. So, thank you for that,

Daniel. That kind of made my day. Um,

Venzo Matt, how do I get people to know

about me and more customers? My bro, my

man,

if only I wrote an entire book on how to

let people know about your stuff. How to

get strangers to want to buy your stuff.

Then this book is free on my podcast. If

you want a hard copy, you can get it on

Amazon or whatever. You can get on my

site, too. Um, Romeo, could you or no

medic mouse mau 5e?

Um,

could you find a partner that shares

your core values and want to be out

front? I don't even know what that one's

about. Okay, let's see. Ali, uh, no, he

said looking good, Alex. I don't even

know where that's going to go. All

right, let's see here. What we not

responses? Okay, Romeo, I think it's a

this is a conversation. Okay, I'm going

to I'm going to phone calls. All right.

Uh, next caller is Kevin,

the man, the myth, the legend. Kevin

himself.

Welcome to Remosi hotline.

>> Can you hear me? Good.

>> I can tell.

>> Cool.

>> What problem do we have in the business?

How can I help?

Well, this might be a little abstract,

but um the business we do, we have a SAS

agency hybrid doing about 150K for the

first year so far.

>> Okay. What is a agency hybrid? That

means

>> SAS agency.

>> So you you run an agency,

>> but also run the Yeah. So we um

>> we kind of have like DIY structure, done

with you structure, and it's done for

you. Um,

>> you have three different service levels

at 150,000 a year.

>> Yeah. Um, so we don't really have much

of the low ticket taken up yet,

honestly. Um, but we're building the

structure out because

>> you you say all the time more better new

and so

>> essentially doing the same work but

turning the camera on. So, and then

putting it inside of a community. So,

that's why I thought it kind of made

sense. But the question,

>> we were under a non-compete for a while

and that's lifted and so we're starting

to do our own marketing for ourselves

kind of walk the walk

>> and

>> so we've been survive surviving on local

and word of mouth. Um, but I also know

that with AI human interaction is going

to be at like king. So I'm thinking

about public speaking and stuff like

that. And there's a certain story I'm

wondering if I should leave out or

include because it's pretty

inspirational. Um, so I got into

entrepreneurship because

>> dude in 60

>> I will. Um, so I had a record that kept

me from a lot of stuff. It wasn't

nothing he um it was just it was a B&E.

>> So the person

>> who owned the house actually got

introduced to me for my services. I'm

actually providing valuable service for

the community. And so,

>> uh, overcame a lot and actually getting

expuned and they helped write the

letter. And I don't know if I should

include that story because that actually

forced me into survival mode and

>> you know, you mentioned the CMO skill

stack on his video one one time

>> and that really hit home for me. I'm

like, he's talking about me. Holy [ __ ]

So, I just feel more urged to talk about

it more than ever now. It's crazy that

it's actually going to be in the past.

And so,

I could see the benefit, but

I I just want to hear what your brain

would think about this.

>> So, there's two to me, these are two

separate things. I mean, you're a human

being and so that's always going to be

tied to you. Um, I want to figure out do

you want to like is the question that

you have around like what do I need to

grow in my business or is it like I

would like to start speaking on stages

because I want to share this message and

then hope that that somehow turns into

business for me.

>> Well, I think the fact that she's a

client is is pretty huge and it makes it

kind of make sense to bring it up, but

also um I think it could be you say

niche down, it could be a smaller niche

I could see it being. Um,

>> so I really don't know. But um

>> you run an agency for SAS business

owners correct?

>> No. So I offer SAS and I also do agency

services like digital marketing.

>> I would pick one or the other right off

the bat.

>> You need to pick one.

>> Well, it's kind of running off that that

software. So

>> you're running an agency. I mean, are

you just white labeling something?

>> Yeah. Yeah. Whatever. You're white

labeling something. Okay. So you have an

agency. Let's just like again it's like

we just got to stick to what's what's

what. Like the work you do is agency

work correct?

>> Right.

>> Okay.

>> Yeah.

>> Who do you who do you do agency work

for?

>> Uh SMBs right now.

>> Okay. Are you doing leg right now? Like

>> in person?

So, um, we we don't we kind of honestly

like we do Facebook ads, we create a

website SEO like

>> you run ads and get leads for for for

business owners, right?

>> Right.

>> Okay. So, you need to get more business

owners to buy your thing, right?

>> Uh, well, yeah. I mean, honestly, it's a

good trajectory

because I binge everything that you put

out. Um, so

um I I definitely think the more sales

are coming, that's a given. We got a

really good outlook considering it's

just the first year. Um, so I'm sure

I'll have to like trim the fat and all

that stuff. Um, and and hone like you

said, we're doing too much. So,

>> all right, dude. Let me help. Can I help

you?

>> Sure.

>> I think that you need to massively

simplify like

>> the story p You're good, dude. You're

fine. This the story piece is just not

it's like it's it's super inspirational.

It's great. I want to focus on the

business right now, which is that you

have an SMB digital agency. This is a

very normal business.

>> You need to run ads or do outreach. pick

which one you want. Uh for local

business owners,

>> you are going to quickly run into the

problem that you might have heard from

other people on this, which is that

small business owners are inherently

volatile and they will turn out unless

you have a very lowc cost service.

What's your cost per month?

>> Um so we provide the tools for hundred

bucks a month and we have clients that

spend up to like 5,000 a month.

>> Okay. And that's running probably 1500.

That's you running their ads is the a

more expensive thing, right?

>> Um and SEO. Yeah.

>> Okay. But sure, so you're white labeling

go high level probably and you're

running ads and doing SEO for some of

those businesses that choose to use the

website stuff plus get services, right?

>> Yeah.

>> Okay.

>> Yep.

>> Great. In the future, just lead with

that.

I white label go high level. I run uh

ads for small business owners. I can't

grow as much as I would like to. And the

constraint that I'm dealing with is that

I need more demand. And so right now,

can you double the amount of customers

that you can handle right now?

>> Um

probably uh uh yeah, I think as long as

we focus on systems and processes along

the way.

>> Okay.

How many customers do you have right now

that are in services?

>> Um about

I want to say like probably 10 15 or so.

>> Okay. So you just I would say either

pick whether you want to say like I'm

just going to do this uh this white

label thing and you can scale that to

the moon because you're not there's not

really any services with it and the

stick's probably pretty good. So, I

would say like, can we just set up these

things? Maybe do SEO plus go high level

because then that way um and for my

people, snip that part out because I

don't feel like I'm endorsing some [ __ ]

But basically, you want to what? Have

your white label software. You have your

SEO. That's the lowest amount of work

that you can do in terms of gross

profit. You probably sell that at $300

to $500 a month. You probably a

relatively low churn based on the SMBs

that you're bringing in. And you need to

run ads and do outreach to get more of

those people. And if you're currently

doing a certain amount of ads and

outreach, you will need to do more of

that. I would stop doing the agency

services, even though it's quite it's

higher ticket because those people will

turn out and it'll be a pain in your

butt. So, I'd rather you stick with the

stuff that's low churn, really high

revenue retention, high gross margin,

and sell that as the primary thing and

do more on the front end and have the

scalable back end

>> and worry about the other BS them close

to retirement.

>> Cool.

>> Yeah.

>> All right.

>> Yes, sir. Rock and roll. Appreciate you.

I I'm I'm glad you you you've you you've

got a full 180. Uh congrats on the

story. I appreciate it, man. Thanks for

calling in.

Did I lose you?

All right. Rock and roll.

Okay. Um

I'm going to answer a couple a couple

chats and um I think that was Was that

Kevin? Is that who I was? Was that or is

that Dylan? Is that Kevin or Dylan?

Dylan. Can't remember. That was Kevin.

Kevin, appreciate you. And if uh you

watch the replay later and see my my my

facial expressions, it was more just me

trying to understand the business and

that's where my my oddface faces came

from. Um okay, so Mike.

Oh, no. No. I'm going to do not Mike

yet. Okay. I tried a model a nine figure

offer but ended up pitching heroin.

Jesus Christ. All right. What are we

talking about? My god. All right. I have

a website business for detailers but

it's really low ticket niche. Should I

switch to solar? If I do outreach, it'd

be 10 times harder. Um, and it's already

hard. Plus, it's hard to lead gen uh to

it. So, just for everyone,

no man's land is trying to sell SMBs a

higher ticket thing. And I'll explain

what I mean by that. You will quickly

make more revenue, but then churn will

catch up with you quickly and you will

create a churn machine and CAC will

consistently rise, which will compress

your margins. I'm telling you, this is

where the graveyard of 1 to5 million a

year agency owners who sell lead gen

services to SMB for between $1,500 and

$3,500 a month. That's where they all

live. That's where they all die. And

it's miserable existence. And you're

welcome to go compete there if you want.

My opinion is that you have two options

for that business if that's what you

really want to do. You either go low

ticket, very low ticket. I'm talking

like basically $150 to maybe $400 a

month. That's what I'm saying. Maybe 500

tops for SMBs. And you have to have a

truly scalable solution that cost you

almost nothing to deliver. This is where

like, you know, getting super high

listed on uh maps or, you know, you

know, first three for Google. This where

SEO type stuff works well. Um maybe it's

just like maintaining Google, Yelp, and

whatever review stuff for a few hundred

a month that no one wants to turn out

of. All of those are things that are

super reasonable uh that you can sell to

SMBs that they will not turn out of

because the price point is appropriate.

It's a nuisance uh thing. Whenever you

start getting into heavy true lead

genen, their businesses are so volatile

that they will turn it off independent

of how well you do, which is a very

frustrating place to be. And for you to

really make it make sense, you have to

charge more and they don't have the

money to do it. And that's the catch 22

with that model. So I said option one is

low ticket but high gross margin. Low

ticket but high gross margins. and very

high revenue stick. The other angle is

to go for um mid-market, so up market

from there. So instead of SMBs, you're

talking, okay, it's got to be a business

that's doing at least a million, at

least $2 million a year, $3 million a

year, something like that. Those

business owners will be more stable. And

then at that point, you can start

charging for uh you know, higher price

point. So it's like, I don't really want

to play in anything below $10,000 a

month. And if you can't sell $10,000 a

month to someone that that's not going

to make or break their business because

they already know their metrics. They

already have a sales motion. They

already have LTV figured out. If they

don't know those metrics, those people

are not good customers for marketing

services. And you be like, "But that's

everybody." It's like, "Yeah, and that's

why most people compete there. And

that's why most people never make money

there."

Good talk. All right. Um,

someone was calling me. No, we're good.

All right, Mike. This is our last call.

Let's make it Let's make it juicy.

Let's make it spicy. Mike,

Mike, if you can hear me.

>> What's up, Mike?

>> Hi. How are you doing? Uh, so I have uh

two business. Uh, one campground resort.

Um,

>> wait, what? You have two businesses. The

first one's what?

>> Uh, it's a campground like I rent out

cabins on Airbnb and I got through my

Got it. Um, for that it's about $300,000

and uh profit is about 40%ish.

>> Okay. 120. Got it. Okay.

>> Um, and I have a um also a detailing

business. Um,

>> okay.

>> Like I did detail cars and uh on the

main season um I do about um 40,000 a

month and um that business I've been

running for a year now.

>> Okay, congrats. That's pretty good.

>> So

>> yeah. How many hours a week does the

Airbnb thing take from you?

>> Uh so right now zero because I have uh

three people that is working and running

the place.

>> Okay. Um basically I have uh no

involvement in that business and the

reason I cannot um grow that business is

because it is very expensive and I need

a lot of capital.

>> You mean you have to buy more buy more

buildings.

>> Buy more buildings. Yes, exactly. I no

problem in demand but uh buying

buildings.

>> Okay.

>> That's fine. So to me I I'll reframe

this because normally just for everyone

who's listening they're be like, "Oh,

Alex is going to tell him that he should

shut down one of his businesses." I

don't really see like the Airbnb is like

right in the middle of like is it

investment versus is it you know active.

That's why I asked how many hours a week

you're spending on it. If you were

spending five five hours a week or less,

I'd be like that's fine. So basically

it's like if you had a job and then you

did Airbnb on the side, I'd be like

fine. So your job is detailing. You do

Airbnb is what you do with the money

after you get after you take it out.

Okay, great. So what's the what do you

want to do right now? Do you want to

grow like what's what's what's not

happening that you want to have happen?

So, uh, the thing is I really want to

grow the Airbnb business. Um, and I see

a lot of potential in it.

>> We need more money.

>> Um, there are like potential in the

Airbnb business. Um,

but the thing is, as I said, it's very

expensive and I don't have the money for

it.

>> Yeah.

>> So, I started detailing.

>> Yeah. I started detailing to uh make

money so that I could buy

>> Yeah.

>> Air properties, right? uh so that I

could buy a campground and or another

resort so that I could build uh um build

um cabins and stuff. Um but um

I I after a year of doing Airbnb I sorry

detailing I found out that it's very

difficult uh you know and it a lot it's

a very time consuming business and um

>> yeah welcome to business. Yeah.

>> Yeah. I'm not sure if uh um it is

something that is worth doing for a very

long period of time.

>> What would you do if it's not that?

>> Cuz the like the the best detailer they

do about 2 million a year and that's the

best best detailer in like I'm from

Canada. That's like that's the

>> Yeah, there's no good detailers in

Canada. Totally.

Uh so uh like my question would be

should I choose a different vehicle

because a different business uh to do or

should I stick to detailing?

>> I mean you've been doing detailing for a

year and you're at 500 grand a year man.

>> No not 500 because detailing is

seasonal. So probably about 250 300,000.

>> And what's profit?

>> Uh so right now because I spend a lot of

money on marketing um because you know

it's the first year.

>> Tell me the number. Um, so probably I

would say about 50 grand a year.

>> Uh, so I'll say this, man. Um, do I

think it's the wrong business? No. I

think businesses can always be improved.

Like we could look at like the offer and

all these other things to like try and

improve it. But if you like the Airbnb

thing and you're good at it, and I

normally wouldn't say this, um, but I'm

just this is me reading between the

lines from, uh, your call. So this is uh

me I think answering the question behind

your question which is how can I do more

Airbnb right? Does that sound correct?

>> Yeah.

>> Okay.

>> Yeah.

>> So there's this thing in real estate

called raising money

>> and you get investors to buy the real

estate and then you manage it

>> and you give them a return

>> for sure.

>> So I think you should consider doing

that and then make Airbnb your full-time

thing. It's like you're spending all

like I'm you're spending all your time

for $50,000

and you're spending almost none of your

time for 120, right?

>> Yeah. Yeah.

>> Right. So, I think you just need to

raise money.

>> Definitely. That makes sense.

>> Yeah. Just use other people's money to

buy the buildings. Give them a preferred

rate of return. After that, you split a

certain percentage of the profit with

them so that you're super incentivized

uh to get them a good return and they'll

feel safe. So it's like you know you say

everything after you know 6% 8% 10%

whatever it is um per year we split you

know 8020 my way after that or whatever

right and so the blended return is going

to be you know my guess is 15 or

whatever

>> makes sense

>> cool

>> yeah because the Airbnb I think I am

pretty good at it and

>> yeah obviously you spend no time doing

it and you're making two times the two

and a half times the money of your other

thing. I think you're decent at it. So,

yeah, I think you just double down on

the thing that you're good at. So, we

did end up eliminating one of the

businesses. Who who would have thought?

>> Yeah.

>> You're like, I've got this thing that I

don't like that makes me no money that

takes all my time, and I've got this

thing that I do like that I'm pretty

good at that takes none of my time.

Cool. So, then let's do more of that.

And you're like, I don't know how to do

that, so I have to make the money to do

that. It's like, or you can use other

people's money.

>> Interesting. Yeah. Definitely.

>> This was a good chat.

>> Thank you. Yeah.

Thank you, Alex.

>> You bet, man.

>> Happy to help.

Congrats bro.

>> Thank Thank you.

>> Today is the first day of the rest of

your life.

>> Thank you, Alex.

>> You bet, man. All right. Trenton

Powinski, what a name. 8.5 million um in

trailing 12 months, $1.2 million in

profit. Could I grab some advice on

telling employees we're selling the Yes.

Let me Let's talk about this. How do you

balance long-term growth when the

business is on the market? Dude,

it is your lucky day. I have so much to

say about this. I'm going to try and

talk really fast. So, just listen faster

or watch the recording. All right. So,

having sold a bunch of businesses, I

have made a lot of mistakes on this.

First thing that you don't do is tell

your employees that you're selling. Rule

number one, why would you not tell them?

Some people like that's dishonest. one,

you don't know if the deal is going to

go through yet, so you have no idea. And

so to create that kind of uncertainty in

their lives is horrendous. Number two,

every single one of them has a horror

story that they heard that everyone's

going to get fired, which of course

makes no sense because why would someone

buy an asset and then fire all the

people within that asset, right? Now, in

a strategic merger or an acquisition

where it's like two things you're going

to combine, that's different. But I'm

assuming that in your business, um,

that's probably not the case. And so,

thing one, don't say it. Thing two,

there's good reasons why you don't say

it because people have lots of

preconceived notions. Thing three, okay,

you're going to go as far as you

possibly can in this process without

anyone knowing about it. At the point

where you have to include your CFO and

maybe your COO, you include them and you

make it very clear that they are not to

share this under any circumstances. All

right? And only those two people are

probably the only people required um for

that. Now, after that point, it's a pure

need to know. Uh, and you should be

already past signed LOI and very late in

due diligence, close to closing the

sale. Um, where maybe you would have a

couple key leaders that you absolutely

trust. Now, a way to make sure that you

can um keep them in it is I took a tiny

sliver of the pot and I said, "Hey, you

guys are going to get a slice of this uh

so they're incentivized to one keep

mouth shut and also to actually see the

deal through, you know, in in the deal

process. Um, how do I balance long-term

growth in the businesses on the market?

Really, really good. I would strongly

encourage you, the only thing that you

want to potentially not do is maybe a

huge capital expense um, in the

business, but otherwise, you need to

operate as though you're not going to do

the deal. And I would encourage you to

do this because it's going to do two

really important things. Number one, you

want to operate as though you're not

going to do the deal because there's

very strong chance the deal doesn't

happen, right? Statistically, very few

businesses sell. um especially for good

numbers. And so the stats are against

you. So I would not I would not like

really change my behavior very much.

Number two, if there is something that's

truly one time. Now, if every year you

always make capital investments, then

you need to just keep doing keep running

the business. But if there's something

that is oneoff and odd, then I would let

the acquirer know that you're planning

on doing this and that you like don't

want that to be don't want to don't want

it to affect the deal. And so I would

just be transparent with them. Most

acquirers would say, "We'll do whatever

you need to do to make sure the business

continues to run because they want to

buy an asset that's continued to work."

Right? So, uh we keep it super super

need to know uh on the team side, slice

out a tiny bit of the cash and give it

to key leaders who are going to uh make

sure that the transaction works. Um

number one. Number two, within the

actual running of the business, you want

to grow, dude. Because I'll tell you

this, the kiss of death to these deals,

especially to your valuation, is how the

business performs in the 12 weeks from

signed LOI to deal closed. All right?

They're going to be looking at

everything under a microscope and

they're going to like they're going to

like you're going to feel so much

pressure during that time. So, if you

want to open up a can of whoopass, that

is the time to do it because that is

what's going to close the deal faster.

That's what's going to give you more

leverage in the negotiation. Because if

you're if you're if you're plateauing or

going even a tiny bit down, all the

leverage is jacked, they're going to ask

for terrible terms, more more earnout

stuff, more payouts, all of this kind of

stuff that you don't want. Um, and it's

going to be miserable. On the other

hand, if you start crescendoing up right

as the deal's happening, you can be

like, "You know what, guys? Business is

doing great. I'm not even sure if I want

to sell it anymore." They're thinking,

"Oh my god, we put 500,000 in diligence

into this business. We can't lose that

money." they start getting deal

pregnant. It works both ways, which

means they want to have the baby. They

want to close the deal. And don't let

anyone tell you otherwise. The deal is

not done until you have the wire in your

account. All right? So, like the number

isn't the number. The terms aren't the

terms. You can do whatever the hell you

want. They're going to make it seem like

this is set in stone. We don't change

the terms. Blah blah blah. It's all

posturing. It's all positioning, right?

the deal isn't done until the the docks

are signed and the cash hits your

account which means at that point right

like as you're crescendoing in you want

to have the position of strength which

means that your business has grown since

they gave you that LOI so that you can

be like hey listen man um my valuation

is probably higher than it than it is

right now than you guys are giving me

and so I want all my terms it's my terms

and so you always have the frame of

price and terms and like what you don't

want is their price and their terms

right if you get your price their terms.

Still kind of sucks. You want your price

your terms. But there's only one way to

do that and that's with leverage. The

only way to get leverage is you grow. So

you want to hit it hard. If you have

like some seasonal plays, you want to

hit up your email list. You want to run

some I'm not saying discount promos, but

if you want to hit it hard, that's where

you put extra gas on the sales team. You

give extra commission to the manager.

You hit the email list hard. You post

more content during that period of time.

So you drive up revenue in that short

period of time. And then that's how you

that's how you crush it. So Trenton,

hopefully that helps.

Okay. Um, man, I felt I felt I felt felt

inspired just now. Um, okay.

Oh, do I want to do another one? Let's

see. Um, I'm looking to start a local

semi-glutide weight loss business or a

local Medicare insurance agency. Those

are two wildly different businesses. Um,

interesting.

Well, I'll say this. I think the

simlutide thing is going to be seasonal.

So, I think it's something that you can

make probably more money in a shorter

period of time with. Um, but if you want

something that's like this is what I

have my business for, you know, the

foreseeable future, Medicare insurance,

it's, you know, it's sticky, it's

recurring. Um, it'll take you longer to

get it going, but once it gets going,

insurance businesses are incredibly

valuable and very sticky, which is why

they are valuable. But just so you know,

like a a medical like an insurance

agency is almost entirely a sales and

demand based business. Um because you're

basically just selling risk. So there's

not a ton of delivery there besides just

like keeping in touch with clients every

once in a while. Um and so it really is

a you question Dylan of do you want to

make more money in a short period of

time and then probably have to switch

again. Uh as because the thing is

semlutide is going to it's it's a

commodity, right? It's like Botox in the

very beginning was this hot new thing

and then there's Botox parties and then

people start you know chipping chipping

chipping chipping because it's a

commodity right so you're going to the

price is going to go down margins are

going to go down um and so if you had

some of glut you know as a business

there's obviously a lot of demand for it

but you'd want to have other services

other upsells that are going to allow

you to outspend uh your competition but

you're going to be competing against

some of the biggest companies out there

that can almost they can acquire

customers at a loss um not to say you

can't do it I'm just saying that's where

you're getting into it's pretty fierce

competition very commoditized Um, so

it's short-term, long-term. I would

long-term for sure prefer the insurance

business. It just depends on your time

horizon. Okay,

last caller is named Alex. So, Mr. Alex,

strong name.

>> What's up, Alex?

>> Hey, Alex. How's it going?

>> Hey, Alex. How's it going?

>> It's going pretty well. Uh, so

>> can't have a bad day with a name like

>> for you.

>> All right, go for it, man. Talk to me.

>> All right.

All right. Thanks, Alex. Okay, so uh I

just have a two-prong question here for

you.

>> Uh first, uh first and kind of foremost

here. Uh how do you kind of acquire uh

semi senior but not senior kind of

mid-level staff, right? And then second

off,

>> how do I get mid-level staff is the

question?

Yeah. Yeah. That's that's predominantly

my question.

>> So like a director level manager

>> manager level, right? Because I have an

easy time finding

>> Yeah, that's true. Um but the kind of

issue that I was having was, you know,

finding these mid-level staff that are

qualified enough to do the position in

the first place. I'm having a really

hard time with it. Right. You know

>> what kind of business?

>> Uh it's a it's an accounting business.

>> Okay, got it. Do you need an accountant

who's mid like an accounting manager?

>> Well, kind of. It's, you know, I'm

looking for somebody that has their CPA

license or EA license and ultimately

trying or or is kind of on that path,

right?

>> Yeah.

>> Well, option one is go to the schools

where they're on that path and see if

you can create an affiliate pro not

affiliate but like a referral program

for them. Plenty of those people want to

have uh career opportunities for people

who are in there and that can create the

farm system. That's thing one. thing too

is that you can also just do direct

outreach to other accountants. Um, what

is your gross profit per accountant per

year right now?

>> Uh, gross profit right now it's probably

I'd say about 120,000

>> per accountant, right?

>> Yeah.

>> Okay, got it. Um, and what and what's

gross revenue for an accountant?

>> Uh, gross revenue is about, you know,

200,000ish

somewhere around there. Got it. So, you

pay them 80, you make um you make 200.

>> 200.

>> Yeah. Got it.

>> Yeah.

>> So, I'm I'm actually going to bet that

right now you have a two-pronged issue,

>> which is thing one is you're probably

undercharging. And as a result of

undercharging, you're not able to pay

above market so that you can attract the

talent that you need.

>> Okay. Sure.

>> Yeah. I mean, that's that's right now

you're running on 60% gross margins. For

me, my rule of thumb with services is

80% or higher.

>> Yeah.

>> Right. So, if 80 is the base, then we

need to make $400,000 a year

>> per accountant.

>> Yeah.

>> So, you probably What are your close

rates for customers right now?

>> Uh my close rates are around 80%.

>> Yeah, dude. 80% means you've got a

you've got a for sure double maybe a

triple in pricing that's sitting right

there.

>> Okay. So you're supply constrained and

in a supply constrained setup and with

high close rates that's a a clear

prescriptive no question in my sleep

double triple in price

>> and then that unlocks an extra $200,000

a year and all of a sudden you can go to

those accountants and offer them 150.

All right. And then you will get them.

>> Yeah.

>> And you're happy to do it because at 150

you're still making way more money than

you're making right now.

>> Yeah, that's true. you know, I'd be less

uh less busy, too.

>> Great.

>> Yeah.

>> Where do we want to go from here?

>> Yeah.

So, the the kind of Okay. So, the other

kind of question that I had

uh because my accounting business, you

know, it's a pretty traditional

accounting business, right? You know, uh

we we do the kind of standard suite of

accounting services, right?

>> Yeah. Uh but yeah, but kind of yeah I I

was just kind of curious how you would

test, you know, that pricing model then

at that point, right?

>> What do you mean?

>> You know, because

>> you mean test the pricing model that I

just said.

>> Yeah. Yeah.

>> Did you do the exact same thing you

currently have?

>> You do the exact same thing you

currently do. Same pitch and then right

when you say the number

>> Yeah.

>> you just double it.

>> Yeah.

>> That's how you do it.

>> Okay. Sure. Yeah. And if you don't close

this many, guess what? Doesn't matter.

Your supply can train anyways.

>> Yeah. Yeah. True. Okay. Yeah. Because

again, to double or triple price, you

know, I think I think I I remember

watching one of your YouTube videos, you

know, it to triple price, you know, it's

it's kind of a mindblower, right, for

me, right? Because we do a monthly

reoccurring model, right? Yeah. where

you know it's and and I I think that

it's a crazy value, right? You know that

we offer.

>> Well, you don't think it's that crazy

because you're not willing to charge

more for it.

>> Yeah, true. I guess, right?

>> You're not you're not selling me very

well right now. I don't believe you.

>> Yeah.

>> If you thought it was that good, you

would charge more.

>> Yeah, that's true. But yeah, you know,

>> you got to put your money where your

mouth is right now. You're soccer.

>> Yeah. Yeah. you know that that's that

that is that is the point Alex right you

know but to be quite fair you know you

think about it these small to mediumsiz

businesses is what I'm ultimately you

know

>> kind of fixated at you know 500,000 to a

million and you know ultimately we just

offer this bundle package right

>> you know of doing their taxes at the end

of the year we do the bookkeeping and

then we do their payroll on a monthly

basis right

>> so

>> are you going to try to sell me on the

way that let me let me pause you for a

second

>> one of us is going to win this sale.

>> You or me?

>> Your current way of doing business is

why you called, which is that you can't

get talent, you can't scale because

you're supply constrained. You're

closing four out of five people that you

talk to.

>> Yeah.

>> Okay. Do you want do you want to keep

having that?

>> No. I I I'd rather not be supply

constrained, right? Then don't sell me.

Then don't sell me.

>> Then don't sell me and don't sell you on

your problem.

>> Yeah.

>> Right.

>> True.

>> You got to change the change,

>> right?

>> You're intimidated by the fact that you

just have to say a different number at

the end of the phone call.

>> That's it. Literally, the worst case

scenario is the person says no. It's not

like you can't change the price back.

>> Yeah. Yeah, that's true. Okay. Yeah,

that that basically solves my issue,

Alex. Thank you.

>> Glad I could help.

All right. Byebye.

>> I have a go to a bed. You were a sport.

I appreciate you. All right. Later, man.

Okay. So, that was it for Herozi

Hotline. Um, appreciate you guys.

Hopefully, this was a fun fun day. I

think what what did we do? We did uh we

did four and a half hours. What a live

stream. Was that cool? So, um, just so

that I can fuel the the the massive hole

of insecurity inside of my heart. Um, I

would, Dude, Peaks and Seller already

knew, man. He already knew what I was

going to say. You guys could, um, also

I'm going to show this to Laya. If you

guys give Laya in the chat, uh, because

I'll have her read this. Um, because I'm

trying to get her to do more of these

with me because I think it's more fun

when there's both of us because we have

different angles and perspectives and

it's just generally a better time. It's

a party when Leila's there, right? They

don't play. So, uh, with that said, you

guys are awesome. I appreciate you all.

Um, genuinely, thank you guys for, uh,

for hanging. Um, I tried to get as many

comments as I could. I'm gonna try and

go back and forth, um, going forward

when we do these. If you guys like this

style, let me know. Let my team know cuz

you got to also sell them on it because

they want to do other stuff. Um, but I'm

uh, I'm jing with this. I actually

really enjoy this a lot. I could do this

for hours, which I obviously just did.

Um, because I think I'll tell you guys

being real. I think um I think the idea

that like even if a clip or the live

stream like doesn't get like a lot of

views or anything like that, I get a lot

of fulfillment out of being like that

guy's accounting firm is probably going

to grow, right? Um and so if nothing

else, his life will be better. Alex's

life will be better. So I guess it is

self- serving in that sense that Alex is

helping Alex. But um beyond that, I'm

super grateful for you guys. Thank you

for everything. Um thank you guys for

all the support. Um, and yeah, [ __ ]

crush it out.