$100K Per Month, with No Employees | Ep 482 - The Game with Alex Hormozi

Hey guys, real quick. So Leyland are definitely working on our social media presence. If you guys haven't noticed and we're just breaking now into LinkedIn. All right. It's not as bad as I thought it's actually pretty awesome so far and you guys have been really cool in there and people are sharing our stuff a lot. So if we aren't connected on LinkedIn, it go ahead and let's connect and let's rock and roll. Being a Rainmaker, is a skill that can feed you for life. All right, all you got to do, no matter what industry you're in, is learn one. How to make a grand, slam offer to how to run a basic, add to get people, to raise their hand and three, how to upsell those people into a service. So welcome to the game where we talk about how to sell more stuff to more people in more ways and build businesses worth owning. I'm trying to build a billion-dollar thing with acquisition.com. I always wished pesos musk and buffeted documented their Journey. So I'm doing it for the rest of us. Please, share and enjoy. I built a hundred thousand dollar per month, profit business with no employees for less than $1000 in most 26. And anyone can start the exact same business with little to no money at all. And no employees. All right, some explain what I did, how it worked, the good, the bad, the ugly, and what I would have done differently and how I think you can use the same model for yourself, no matter how old you are, or how much money you got, all right, and all this stuff using skills that anyone can learn for free. All right, so I'll even give you a step-by-step set up in the last three minutes of what you need to do to get this running, if you don't know who I am. Aunt Rosie found her back was not calm, portfolio companies that does Fortuner million dollars a year and I make these, I want you to use the stuff. Grow your business to 3 to 100 million dollars in revenue, and allow us to invest in your business and scale beyond that. All right. So that's my that's my self. Isn't any room for everybody else. Enjoy the stuff. Go make money. That's the whole point. All right, so let's dive in. So when I had my chain of gyms, I got asked to speak at this marketing event. All right? So this is a random thing and I like, I never been asked to speak for anything at all ever. And so this was kind of weird to me, I just like do my own thing and I'm doing to be stuff. I just don't weight loss, right? And so they want me to Speak about how is using Facebook ads to get leads for brick and mortar in 2016? All right, so anyways, I wasn't sure but I decided to accept. Anyways, I was like, there's a challenge, I'll go speak. And so I went up and, you know, I gave my, I gave my schpeel and I just went step by step this. I did it, right? And what I want to do is I'll explain to you exactly what I said on that speech. And then we're going to Quentin Tarantino, then I'm going to circle back to why it's going to be more to you. Alright, so here's how I work and pay attention here because this is the part that you will copy and run the same model I did if you want to model that business that I had those make 100,000 All right, and this business model works for any brick and mortar business Not Just Fitness, okay? So here's how our I would run ads for six weeks. We lost channel. So you can run it for whatever you want, but I was running for a challenge, I'd run those ads and it's and them to a landing page. All right? At the landing page, they would opt in with their name, phone number email and on the thank you page, they'd have a schedule, right? So they book a time to meet with me at the facility, which is where I would sell it right now. I would call the leads to confirm their appointments who did schedule and then I would call the ones, you didn't book to get them to schedule a time morning of. I'm just give you a little hack here. I would set up. Personalized, video be like, hey, Sarah, like, I've got this t-shirt with your name on it, what size, and what color do you want? And so, then they would respond back with a color size and it massively increase, my Sharp rights, and I got some Goodwill, right? So when they came in, I would sell them the challenge right? When you could sell whatever promotion you want. And I would sell for five or 600 bucks side note. And I'll get to this more later, but I want you to sell really expensive stuff. So if I do it again, add some more expensive stuff, but I was selling five or 600 bucks. And so the idea was in, this was my big offer. So you need to come up with something sexy that I lost 20 pounds in six weeks. They give the money. Right. And I offered a satisfaction guarantee so that even if they didn't lose the weight, if they wanted their money back. At any point, the six weeks I didn't give service that was amazing. I'd give it back to. All right. So it was a no-risk grand slam offer. And as you can imagine, it wasn't that hard to sell right, which the Q Point. You'll notice both offers that we will make one of the business owner and one of the prospects is not hard to sell. All right. So here's how the math worked out. So I'd pay about 10 bucks Elite and I would sell one out of five into the six hundred dollar challenge. So if you're doing your math year that's 12 to 1, so I put five Ran into marketing, I get about 60,000 out, and the nicer part was that I got that money up front so I can put it back in ads. And this is why the no money down things important. So I don't even need five grand or ten thousand dollars to start this. As soon as I made my first, you sales that became my marketing budget, the entire month, right? And just a side to, I know Jim wants. Jim still get these numbers today, so it's not like the stuff changes that often people just people still need to lose weight today as much as they did a few years ago, right. Like and challenges have really gone away. And so, the nice thing is that, once you crack one of these for Brick and Mortar business, you can run this, huh? That was our month. Profit zero cost to start at zero employees business model on your own for life if you wanted to. All right. And the way that I stumbled onto this was that I started launching my gyms and realizing quickly that I actually need more money launching the dims than running the gyms, right. And the reason for that was that once everyone convert it from my front and program to my back and program, the average revenue per week per client went from a hundred dollars a week to $50 a week, right? So they pay 600, six weeks versus, you know, 200 a month which would be about 50 a week. On the back end. And so I made at full capacity, I'd make half as much money. So I actually made more money launching in filling the gym that I did after was at full capacity. And so that was one of the big aha moments ahead which is what is how I accidentally stumbled into this business model. So let's Quentin Tarantino back to when I stepped off that state, right? So as soon as I showed my whole models, like this is the ads, these are landing pages. This is the thank you thing, blah blah. I got bum-rushed by. All these folks asked me to help them do what I was doing, right? And they're like, can you do this for my best can do this for dry-cleaning can use it for whatever, right and add a bunch of Jim. To obviously and I didn't sell to Jim's. So like I was like, sorry. I don't look like I just do this for myself and I hope you enjoy the presentation but you know, being the budding, entrepreneur that I was at the time. I figured maybe I can make some money doing this, right? Maybe I could launch their gyms. Like, I did my own and work out some sort of deal to get a percentage of the revenue that I was bringing it right makes sense. So here's the offer that I made some of the guys who rushed me off State. Now, I got all their business cards that I would call them up the next week because I didn't even know what I was doing. And so this is the offer came up with. I said, I'll fly out to your gym. I'll spend my own money. I'll Market your gym for you, I'll work the leads, I'll schedule them and I'll sell them and I'll even do nutrition orientations. Which by the way, is where I would sell another 100, 150 bucks a head and supplements. And if you're doing the math, that would also cover my cost to acquire customers on its own. And all they had to do was just fulfill the six weeks of service, right? And then they got to keep whoever they converted into a membership. So it was a no-risk off of them. Remember, like I spent all my time and my money, they have to do anything and I got to eat what I killed. That was the deal. Alright, so here's the important part. If you are a single guy or gal per hectare, if you're married, Matter. If you know these three things you can make this business model work for you. Alright? So number one is, you have to be very compelling offer for Brick and Mortar business. That gets late. So for me, it was the challenge. It could be any number of things, right? All you have to do is give something very valuable for Less where I could be a free thing or discounted thing. And then if you're giving a heavily discount thing, you have to learn how to upsell something. If it's not that then you can stall the core offer. Either way a very compelling offer up front. Number two is you got to learn how to run ads. Not that complicated nowadays. You can run lead ads. You can watch them on YouTube. It's not that complex to do the number three. Re you learn how to sell. If you can do those three things, you got an offer, you can run ads and you can sell it leads. You can make this business model work in any local market, all right now, so here's how you get the business owners to agree. So you go into the groups and you ask folks in the groups and say, hey can I bring you customers for free? No risk is. Here's how I'll do it. I'll fly, I'll spend my own money, etc, etc. And then here's the key part. You then ask them. What's the absolute cheapest? That they would fulfill customers for during this thing that you're selling. So whether it's chiropractor things, whether it's dentist things, Hey Harvey. Bring you a hundred of these? What kind of discount could I get here right? And this works, especially well with services that have low marginal cost which means that adding an additional customer doesn't cost the business that much. And remember the big contingency for them is that and you can negotiate hard here is that they're going to get the customers for the Lifetime, right? And it cost them nothing, so it's like, hey, even if you broke, even on the thing, you get customers for life and you keep making money after that, right? Like, I'm the one who's, I'm the one, who's throwing all the risk in doing the labor here. So ideally you can set it up, like, I had it, where they Read it to do it for close to free Forex period of time because all the customers cost them is nothing right? And so once you do that because like for me it was I didn't they didn't get anything that I collected for six weeks and after that they can keep whatever they want but that was the deal that I had set up. So once you do that you can run the ads and you sell the people. All right. So for example, so I'm going to talk about a different industry. So if I were to do this as chiropractors, I might set up a 20 dollar console, which is normally $200 and every an assessment, whatever that I would mark it, all right? And then I would get the doc to do the X-ray and then the person would meet with me again and I would sell them at Later for, like 2,500 bucks, for six months, if you can sell a longer form or by all means do. So, the deal that you make with a dock would be something like negotiating with him to see what he would fulfill that for. So if you can get him down to say like 500 bucks and you'd be surprised here, you'd make the spread minus the cost to acquire, right? So if you charge 2500, and it cost you five, there's 2000 left, then, whatever cost you to acquire is what the cost is. And everything else is yours. More money. Good. So you'd run the ads called, we'd sell them to 20 other consult, this make sure they show up just FYI. And when they come in the docks, you would do the X-ray. You do the Follow-up meetings then recommend the S the session package. Right cool. So let's talk money math. So if you sold forty eight of these a month, all right. That's two a day for 24, working days. So 24 working days in a month. So to add a 48, all right? And you saw them at 2,500 bucks, a pop with a 500 dollar cost of film ever, pay the doctor 500 bucks. 2500 we get and so let's say it. Also cost you 50 bucks Elite all right with one F5. One out of five bonds, 20 percent. That means your cost to acquire is $250 right? 5 times 50 is 250. All right. If you ran this play for a month and spent $400 a day and it's twelve thousand dollars total. Remember you make money quickly so you can reinvest it in. Dad's you make a hundred, twenty thousand dollars in gross revenue. Mind you. That's not profit. That's Revenue. All right, so we still got to take out your 12K and marketing and your 20 4 K that you have to pay the doc but now you got eighty four thousand dollars left over as a single person that has no employees. That's all profit. Right? So you can stop there. You can make a million dollars a year in personal income, not bad for no money down to start. No degree, no employees, right? But if you're smart cookie, you do better. So this is what you do. You also meet with all those leads again and then sell them retail products. So think like cream supplements, oils Orthotics, etcetera, right? Which you could pre-negotiate that you keep all your product sales which is what I heard and so then you make another 500 bucks, a head in profit with this product sales. So that puts another twenty four thousand dollars back in your pocket and that now covers the dock. So now you're back to 108,000 minus your cost of living which when I was doing this across about three thousand dollars a month in Extended Stay, that's I would stay at a motel food gas. Cetera, so hundred five thousand dollars, boom, 100 Grand plus and profit do employees thousand bucks to start before you run off and do this. I told you the beginning that to the good and the bad. I still haven't told you the ugly. All right, so here's what I would do different if I could do this again now. I ran this model for a while. Here are 11 things that went wrong for me, that I would have changed, all right? Number one, I'm massively overwhelm. The facilities. I would have spent far more time really planning out how they would fulfill another X. Patients or clients or customers, Etc? I would have like, really like, okay, well if we get you 100 customers like what time you going to put them in, like, how can you fill the slot? I go to spend more time doing that with them. Number two, I partnered with struggling facilities and so this was a double-edged sword, they're really easy to sell, but at the same time they have bad reputation for a reason. They weren't that good a fulfilling. And so, if I would do this again, I probably would have tried to find good. People, not just anyone, who would just let me sell in front of the door. I was young. I was an experience, I've been mistakes that was one of them. Number three in retrospect I would have explained all the Stout incur upfront, hotels are fair food, rental ads, been etcetera. So, they wouldn't think I was just like, taking all this money, their facility. I feel like I got cost to right. So explain that. So they understand, like I have to make money to do this, right? And make it worth my time. Most Nation real quick. If you are a business owner that has a big old business and wants to get to a much bigger business, going to fifteen hundred dollars. Plus, we would love to talk to you and if you like that or like to hear more about it, go to acquisition.com, you planning on the page and talk to one of our team and see if we can help you get there. Number four. I'd also explain how much I plan to make revenue and profit from the facility. So they're going to be shocked when I crushed it as they all work, right? So have them. Try to get me to stop selling and I would refuse because I needed to sell a certain amount hit my target. That's why it's so important to explain the cost of fruits. Like hey this is how much you cost me just to break even. So I got to sell 40 people just to like cover my nut, whatever it is, write it like, and then I got to sell another 40 if I just want to like hit a 50% margin. So I want to do more than that. So you really got to prepare for this, right? So it's like it's setting expectations that I I was young and I was like, so, afraid of scaring somebody off that. I just didn't want to set good expectations, all right? And mind, you, I set it and none of them believe me and I knew they didn't. So I was like, whatever. I'll just prove them wrong. Ultimately ended up hurting me. All right, so all in all, I would have been more transparent upfront. Make sure they really understood how this is going to happen. Like mechanics behind it. Five, I'd have an agreement which I don't have to spell this stuff out. All right. So this would further clarify expectations, this is important, it's the contract, right? So this is clarify, the expectations and hold them accountable for their own behavior. These are the word spelled out in front of you. These are the terms, your account for this. I'm account for this, right? If I had done that, I didn't even have contracts. I was a kid, I didn't know have contracts next. I would have filmed as much as humanly possible. This is probably my biggest regret through this entire thing. I filmed literally nothing and I would have had 30 plus gyms and thousands of sales calls and in-person documented for training. I have none. Like think I'm a sick. This would be if I had if I was like, here's a thousand fucking sales reports, like that would have been awesome and you could have that. So if you do this, Model please for the love of God do that because you'll have the extra margin and it's worth having someone be with you. It's that you can probably need that for the ads. Anyways, if you want to do inside your iPhone, I did on my iPhone, but point is is that I would have film stuff. I would have documented this because like, this is only part of the story that you tell one day, that's what I would have done. And as a side note me just showing all the contracts that I was selling. Imagine how easy it would be to Market and sell this organic, I'd like another month, another 100 200 Sales, like it would have been so easy to Market this and I just did it. I didn't think about content. Them just wasn't a thing for me. Honestly, I think I would have been booked you around like no matter what I would even had to run an ad or do a reach out. I would have been booked inbound and at that point, this is the cool thing is that if I had done that, I would have more negotiating power. So I can either negotiate a piece of the back end like what their the continuity was going to be like if they converted or they could have maybe like an upfront cost to go out or they cover my marketing for me. Not me. Like there's other things that I could have been able to leverage. If I had had more brand more content, you know, and I didn't have that. So if I could do it again, I would. I've done that it would made even better deal for me. Next is I'd include a clause in my contract that I'd have them signed separately for added transparency and accountability that have any customer said they were encouraged to refund. So they told a customer, you should refund or you should sign up again through me, right? So like if I sold a somebody at a chiropractor's office for 2,500 bucks and then I find out that the customer refunds and says they sign back up through the the dock at half price that they would owe me twice with a person paid. I would have done that and big Me that was actually the thing that drove this business into the ground for me was that I had a couple of Bad actors which is why I said earlier I would have done deals with better people. Less Shady who just basically said one guy was like too many people here just refund because it wasn't his money, right? He didn't care and so that hurt me a lot. I also got slammed on a bunch of reviews because I was when he would sell someone into it location and the location with suck and so it was my reputation. I mean there's two but my reputation cause I was the one he was like this is going to work right? And I Definitely add Rose Colored Glasses on in the beginning, be like, oh no, it's good. They're just Scrappy, you know, but I think ultimately people were not as well. Served. I should have picked partners that I really wanted to sell their product. And I just picked Partners who would let me sell their product and I was better at selling it. They were and so I mean you know, you learn a lot. It's been a decade, you know, it's been a while. So like the biggest problem is that when I had this like at a few bedrooms that ruined it, some acted really sketchy other. So class refund inside back up. And unfortunately, since I was only sold them, I was on left holding. Back and I was on associated with the decision, which sucks? I made mistakes. I definitely put this with my rose-colored glasses on when I was selling these Jim packages. I just pretended. I couldn't see all the crappy stuff that was going on, but I was desperate and I wanted to make money, you know? And that's something that I own, I would have done it. I would have done it differently now, which is why I make this stuff. So my goal is Mosey Nation. You guys want to repeat mistakes, so I think a lot of my pain could have been avoided with three things, clear expectations, clear agreements and better picking a Partners, but all in all being a Rainmaker, Is a skill that can feed you for life? All right. All you got to do, no matter what industry you're in, is learn one. How to make a grand, slam offer to how to run a basic, add to get people, to raise their hand and three. How to upsell those people into a service, all right? The key points of Leverage, our that you're not getting commission, that's why this is such a profitable opportunity, all right? You're getting everything - what you negotiate because you were the one, taking the risk of capital in time. Like that's the key Point here. Like you're not a Salesman, you're a Rainmaker. It's a very different skill set. All right in If you have a high return on Advertising, this is a license to print money or this is what I did. Every time I needed money when I was broke, I would go do this. I'll go find a facility. I'd sell in front of it. I go print myself money. Alright, was like, this is like my get-out-of-jail-free card, the like is worn down, from the amount of times I use. It gave me second. Third fourth, fifth changes in like when you know how to get leads and you know how to sell you have unlimited chances to get it right, all right? Like this is a skill worth having the only limit on this business model is the actual capacity, the facility. So, if I'm picking better Partners, I picked the ones that could handle more patience, more customers that I could sell for, for a longer period of time. Etc, etc. Like that's what I would do if I could do this all over again. And if you're totally, you, you can only have three or four facilities that you're doing this. When you just do one a month. And then you go back to the beginning, like you wouldn't even have to have zillions. Like I did like you could just go like there's three months in a quarter and I'd have facility 1, 2 and 3 and I go back to facility want to do my rainmaking thing and they could all be the same area, it doesn't matter, right? But most of times you probably just sell the issue I had is I had some to such a capacity that like they'd be full and Had to go find another one to fill up, and that's why this model, you know, was what it was for me, but there's probably a balance between those two extremes. So, bonus number 10, I would have run maybe 250 dollars in ads in every Market before I decided to take them on. So some markets, perform better than others. And so I kind of felt like a grand to test for markets, like, 250, 250, 250, 250 to figure out which ones were going to be the most leads for the cheapest price, right? And so imagine I've got a bunch of different gyms or chiropractors or dental offices. Your real estate agent doesn't matter right that? I'm selling for cleaning services that I'm selling for and I could have been like okay well if I spend 250 in all these markets and this Mark gets me, you know, one third the price leads then I can just ignore these ones and focus my time on the opportunity, right? So then I would have only worked with the facilities and the absolute best markets, right? So to give me more leverage, AKA more money per unit of time and effort that I spent. And then finally, I would try and find the most expensive stuff to sell, right? So think, thousands, not hundreds here. So, like I could have made a lot more than 100 Grand a month. If I said, the balls to charge more and find a more valuable service or product, and you can do this in any industry, right? I like, you can do it in Insurance, you can do it in Pest Control, you can use solar, are you to give you Jim Kyra, dentist, etcetera. Like, if people have expensive stuff, you can get leads and you can sell them locally, all right? So if you want to sell stuff in the thousands Market, a cheap or free thing that 0 to 99 dollars. That thing is a lead magnet and then upsell them into a multi-thousand dollar thing. This gets you better lead quality in general. It will dramatically cut no-shows and rescheduled for appointments because if you build them you know 20 bucks 50 bucks like people are much more likely to come in, right? That's what I would do. Okay, now I promised that at the end I will give you the text set up in the last three minutes so here it goes as fast I can. All right, so this is crazy simple, so if you're not a tech person like I'm not a tech person. I was able to figure this out so you Can do this. All right. So just as a reminder, it takes 20 hours to learn most things, but most people spend years delaying the first hour, so don't be that person. All right, so like I said, I'm not tech savvy and I've got you covered. So you can figure out how to do all of the tech that I'm about to explain in less than 60 minutes or so like put a timer on six minutes from right now. This moment you can know all the tech that you need to know. All right. So here's what you got to do. First Google, how to run a Facebook lead at this is how you're going to get leads, give something away for free, the crazy guarantee. You'll get leads, your skill, will be up selling them into something more expensive. That's number one, Facebook me dad. You just Google how to run one number to Google Xavier Facebook, lead, add to Google Sheets. All right this will give you a makeshift CRM this will just give you a big ol list of leads. So now the ad which you know how to run then zaps over the lead to a Google sheet. That's Step 2. Third you Google, zapier, SMS, notification set up with Facebook lead ads. So third, Google zapier, SMS notification set up so that when you get notified so that you can get notified whenever you get a new lead. All right. So the quick and dirty way anyone can set this up your business. Alright so I'm going to recap this real quick. You're going to Google how to run a Facebook we dad and you're going to give some amazing free thing away. That's what's going to get you leads to make sure you actually capture leads, you're gonna go Facebook lead, add to Google sheet. No, you don't have to build a web page. All right, so like we're making this crazy easy here like no landing page do nothing. You literally have to learn how to run the And then you put a zipper over to a Google sheet and then you get a Xavier SMS notifications that every time you get a lead you get notified so you can call them and touch them. That's it. That's the text set up to make this work. Isn't this amazing right now? This is how you become a Rainmaker and I get asked all the time. We'll podcast etcetera. Like if you lost it all, what would you do? I've lost it all twice. I know exactly what I would do is I've already done it. All right, this is what I did. And this is what I fell back on, what I lost everything. And to this day, it's a skill that I have and you can have it too, all right? And if you're wondering, how do I figure out what's, what offer to sell? And what, Service, right. Go to a business, that's local. That sells expensive stuff offer to sit at the front desk and try out a few different offers until you get the one that works. Once you keep configuring the price to get ten to one or more you can then copy or paste it in any Market mind you, you might be able to do this and not have a stable of a setup with the first location. So you learn. Right. You can learn before you earn so learn get all the Kinks out on someone else's money. You can make significantly less than just say, like, I'll give you all the money. If you can spend it, I'll work everything for free just to learn once you get the model right now. Got a way to get 10 21 21, sometimes, 30 to 1, then you scale you copy paste it in other markets, right? And then you can make a much stronger deal for yourself. And as an aside, it's way easier to actually get 12:50 2131 returns in local advertising compared to online because you have implicit trust. Like if it's whatever your micro local market is, you automatically trust it. You don't need to watch some long complex video sales letter. Like if it's like you know Towson chiropractor like like he's around the corner, right? You trust them and so you're able to sell High ticket packages with significantly less. Less Automation and selling before that just because people are, like, I can touch and feel this place, like, there's the location, they're not going to go anywhere and be amazed it still matters. Most Commerce still is not done online. As much as you two will make you think that everybody is online, still? The vast majority of Commerce is done in person, okay? And so people trust people who are local to them. And so if you sell in person, it's even easier. And if you learn to set over the phone, as a side note, you actually make more money because it's more efficient to sell over the phone, like in terms of sales per hour. So it's a higher level skill, it's harder to sell over the But if you do, then you can actually sell for all these different markets from home, as I know. But I recommend if you're starting out and you've never sold before starting person, do the first one first, some sort of negotiated, that's basically, you're getting nothing and then risking more. And then once you get the model down, then you can copy and paste. It negotiate with more leverage and you make more money as an aside again with the phone thing. Like the reason it's you make more money is that you spend more time selling and less time waiting for appointments. So like you don't get no showed on the phone because you can just keep calling other leads and selling them, whereas in person which have to sit there, 30 minutes and it happens a lot, just be real and so you may actually closed a lower percentage of people, you speak to, but you'll talk to twice as many prospects because you don't have to they don't to get in their car, you know. Get the appointment show up. It's like you take that whole step out. It's just basically like when you would normally be the person confirming the appointment you actually just sell them right there. That's the 2001 version of this, right? Like 101 is really 101 is go to a local place and do it for basically free and have them from the wrist. To the, you can learn the model to one version of this is that you now fly. Around or you go to the local places and you negotiate your your splits, you get a majority of the Opera because you're risking the capital. The time 301 is that you learn how to sell this over the phone so that you can be Central and then you can sell it at any of these locations, right? All of these require no employees, basically no money to start, and you can make hundreds of thousands of dollars a month in profit. Are we gonna see the opportunity the same way I did? Because this is literally were like, how do I would you make with? This is what I would do. This is how I did it. Like it's not like a hypothetical me like I've lost my everything. I've had multiple times and every time, this is what I did to make. Money again. Like how do I print money with no risk? This is how I did past three million, get into the 10, 20, 50 Etc, and then allow us to invest in your business. So we can help you scale from Beyond that otherwise, most Nation, love you. See you guys next bit.