7 Millionaires Asked Me How to Get Rich(er)

everybody in this room is making between $1 million per year and $12 million per year and we just talked for the last 60 Minutes on how to scale their business enjoy all right so you got neuropathy um you're doing 5 million year what's the model uh done for you scheduling okay Le okay is it local neuropathy stuff yeah so diabetic dinners and all that jazz dinners and yeah familiar with the model okay um so then what's the what's the what's the big play uh our we're we're niched pretty well like I think we're probably the biggest in our Niche um it's a smaller group meaning like there's maybe 2,000 doctors that do neuropathy specifically um so and we have 160 of them so it's not we're still there's still huge potential for us to I think we get 300 or 500 or th000 maybe I don't know what's the Ang go for you um I'm I'm just cash okay yeah yeah no I I asked because it's like is it to build it to sell it is it to have yeah I mean I think selling would be cool it has to it have to go to different verticals I mean I'm like I'm way too risky on the checklist oh not necessarily I mean cuz the thing is is like the the ultimate version of the model that you have is like you've got 160 out of like 2,000 neuropathy clinics right so you've got like pretty decent you know you got whatever that is 8% um of that like pseudo of like niche of a niche of a in Market but those guys make how much these these guys make a year like um uh between a million and 5 million right and so this is where this gets like way more interesting in my opinion so it's like you've got 320 million year I'm just using an average right per year that you're driving in revenue and it's like man I'm making five I'm like this sucks right of that you're like how can I get more of that um and so the thing is is like I think the the ultimate version for like the the quote info and agency space that I know those are different things but fundamentally they serve Niche Niche avatars that are B2B um the ultimate version of those businesses is rollups of the the customers you serve because if you think about what like a rollup does I don't how familiar you are with it but like you get everyone on the same marketing you get everyone on the same price points you get everyone on the same packages you get basically you consolidate what everyone's operations are and that's what the majority of super Niche agencies and kind of in info Consulting whatever you want to call it do with businesses so they do all the heavy work of integration for what a rollup would do and then they just say like okay I'll stop there I just won't like actually push it over the edge and monetize the whole thing um and so like most of the Physicians that I know hate being Physicians they do it purely to make money and want to be out of it as soon as possible and so like selling them on the idea that like okay your practice does you whatever 2 and a half million a year of Topline and whatever 1 million in profit uh that's awesome and then you have your you know taxes that you're taking home 600k year after that like that's great but what if and on your own this thing could maybe sell for I don't know 3 million bucks maybe like maybe if you're really really you know we're being really generous but if you were part of a group of Physicians that were a neuropathy you know thing Nationwide uh we could probably sell for like your thing could probably sell for 10 million and so all I'm asking for is a you know 20 to 30% slice of that but times 160 and so obviously of the 160 you wouldn't do with all of them I mean if you did that would be a monster deal but like if you could get like 10 or 20 of them to roll together because they all probably do have enough like enough profit together to be meaningful so it's like if you get the roll up to be like1 to $20 million in terms of profit that would be a meaningful exit that would be probably like a 100 to $200 million exit and you have 20 to 30% of that but then after that point you're now the guy who did that and so then your whole reputation changes your Dynamic changes around pricing you're a long-term stick all of that kind of stuff changes because it's like oh I'm the guy that can get you to hear and that's also the like get rich know if you don't have to do this again which is a much more compelling offer can I ask you a side question you guys uh when you switch to licensing so I remember I know o OG flying around and then more less OG they were flying around for you and then more recent them doing it for for themselves right and I gave them the ads that we test yeah right so the the transition for you from doing it for them to doing it to then doing it themselves and you being a coach does that I would never use that word but yeah yeah does that work do you think that that looking back would you would you have done it that exact same way would you have switched to the licensing model and like and is that what you're calling licensing joke I mean because like we had ads that we would test every month and then we would just let everybody else use them and tons of people tried to use them that weren't are because they would copy the gyms that we had ads and they'd like I'd have ads gyms using my face to run ads for their gym it happened all the time so um would I do the model we had again yes the reason that we didn't do done for you was two things one is or like the reason do it yourself for your avatar doesn't work is that they make too much money yeah a gym owner the value of learning the skill exceeds their current skill it makes more sense for somebody who makes $35,000 a year to learn how to Market and sell than somebody who makes a million dollar here to learn how to Market and sell they've already leveled out of that in terms of like because they can pay somebody less than they make to do this for them whereas the gym owner can't it makes sense for them to learn that skill and then from the reason I didn't do a rollup is because group based service uh there's zero there's zero market for it no one wants to buy them if I had been in a market where people were buying for like for sure I would be I would that would have been the model I would do beautiful yeah out of respect for I'm going to rock and roll does that make sense sweet yeah so we do permanent holiday lighting that's R off a Smartphone um on homes and businesses um my question I guess would be or I guess our constraints we have no Revenue retention um and so we've dabbled with you know maybe doing like a a maintenance plan you know where we upsell people things like that um or you know having paid subscriptions in our app but so who's your customer most of the time uh it's kind of a it's a healthy split between like elderly and then like people want to keep up with the Jes okay and so the light so tell me more about like tell me more a little bit more about the product is have a better understanding of it yeah so basically um we install an aluminum track system into their existing soft and it's got LEDs and so you can do any holiday game day accent lighting it's all right that is that like the Philips hu type type deal I don't want to like oversimplify what you're saying I just want to make sure I understand it it's kind of like that it's much bigger cooler what's the average ticket uh about 5,000 okay how do you get customers um through Facebook and I guess met ads but ads you didn't paid ads in your local yeah okay got it how many locations just one okay one location what are margins um we're about 60% depends on the season um so you make you make a million bucks you keep 600 no well we checked about 51 okay great you're doing half awesome what's CAC um 300 300 bucks for 5,000 LTV that's great okay so um so a couple things so if you want to get Revenue retention um you want to measure how long you've been in business so I've been with the company for a year okay about two years first year was just you know vetting products out and stuff got it but do you own it yeah okay got it okay you said been with the company so I was like I don't know what that means I've been with the acquisition. comom as well um um okay so uh so again we're thinking about this from a revenue retention perspective um one is is there so you install this thing for the lighting um what else do those people want like is there anything else you can add on top of it because like you have to Keeping Up With the Jones I'm sure that during certain Seasons they want to do other razzled Dazzle things and so like you can you can assemble and then disassemble things multiple times a year uh for seasons for Super Bowls for things like that I don't know if that's too different from the type of lighting that you currently do but like it's not too different now I get people asking all the time if we'll do their trees or if we'll do you know other stuff that's not permanent yeah so I would see the impermanent lighting as like you run two to three seasonal campaigns a year so I'll bet you Easter would be one if you're in Utah I'm sure that'll be big Christmas will obviously be big in Utah um and then you know pick your third date maybe maybe Halloween's not as big in Utah um I don't know I'm just I'm just messing around um but even if you had you know one or two cracks at the Apple um cracks at the Apple whatever bites of the Apple uh every year on top of that that keeps you top of mind and then like when you go there you're like hey we also do it like we'll do standard double check is everything working okay with the lights it gives you UPS opportunities but you still like generate other revenue and then when they want to replace it's like hey did I tell you about the new lights cuz these ones are old now the new ones are oh my God let me tell you let me show this thing on my phone I did for your neighbor Susan down the road hers looks sick didn't know if you're interested in that um so it's like those become UPS opportunities and instead of saying like it's um recurring it becomes reoccurring so it's slightly different so like Coca-Cola has no recurring basically no recurring members uh member like memberships but we buy Coca-Cola products all the time so we have reoccurring it's reliable Revenue it's just not on a membership or a subscription and so basically all you'd have to demonstrate to make the the the company a lot more valuable is Simply Having the data to track that we sell a customer for lights and we sell one out of two another thing every year whether that's an upgrade a a maintenance fix or it's lights that we do for Seasons like if we can just show that half the people continue to buy something from US every year that's still makes it a very valuable business does that make sense that would be it so my name is Cameron uh we do Residential real estate flipping in the state of Missouri uh we did 15 million Revenue last year for 3. 7 um gross before overhead so 2.

5 after you take into account our team 15 meaning like the how much the houses were when you sold them and then the three we sold $15 million yeah it was like house sale price the profit on each project was 3. 7 which is it helps us tell how well we're doing on the projects and then you take out our team and you end up with 2. 5 like evida I guess sure um I was trying to think of the constraint all all week you know uh zero Revenue retention got highlighted in the in the thing but for us I think it's going to be that I would we've kind of captured the market we can capture which for what we do is a driving radius like we've I would say dominated Within 4 hours of where we're at which is like you drive 4 hours to a house to evaluate it and 4 hours back your day is gone um so we're kind of at a push or pivot moment of like do we we do no advertising it's 95% foreclosures and then like a few word of mouth so do we pivot would you say to the rest of Missouri like almost franchise out like get four little like find other big cities and and try to get the rest of Missouri there's probably like four quadrants or would you go go into marketing cuz I know I mean doing 95% foreclosures it's like we don't control our income of properties whatsoever and we kind of have like that that one funnel and like if we're clo like if the economy gets good then you have no deal flow kind of exactly and constant through Co foreclosing was literally illegal in Missouri and we made 2.

7 that year so somehow we made it happen like you said it's just a lot freaking harder but there's ways um so I don't know if it's a push or a pivot I would say that's our main con there's things we can improve on but that's like the one that keeps us up at night right now let me just say what's the goal we have a mission statement and it's to uh make sure that all houses within our reach are at their highest and best value because we don't see a house falling off the market as a good thing that just makes other real estate more expensive um I I know the goal is not necessarily to ever sell so it would probably be to expand I guess okay so so you know path one is you just go to another city and I wouldn't necessarily call it franchising you just expand it's just like opening another lighting thing like that's you just that's just the normal way of things like if you just get better and better at it you open another location um I see that as another another set of skills for you which I think will be valuable um and you could and this time like if it's basically there's no point I mean you could go in Missouri but you could also do any other Market that you'd want because if you're if you're going past 4 hours of driving now you're in like flying range in which case pick the right City you know like pick whatever City you want to go to um you'll also go into a city that's going to probably have competitors you know what I mean which I see is a good thing um because it means like the more competitors there are the more of a market there is um as long as you're you know number one then more for you um and so that's that's high I that's at least my perceptive perception like whenever people like oh there's a ton of competition in my market I'm like that's awesome it means there's tons of buyers um and so just side note there but um cuz the alternative of this is like literally changing the entirety of your business exactly which I I would I would like you're doing well with it how long you been doing this uh I've been doing it for eight years yeah dude you've already paid down like all the ignorance Deb so like you're at this point you're like you're like here on your curve like you're like right here and so it's like well don't don't jump back down to like here again right don't go there um like there's an ultimate version of this and so what's the who's the biggest uh wholesaler in the nation the biggest Wholesale in the nation uh is it We Buy Ugly Houses probably I mean there's a lot of me okay so what do they do that you don't do um a lot of advertising a ton of advertising pay pay for click uh mailers is huge Billboards we do none of that so I'll bet that there's still way more deals even probably even Within your current market I think so and so I would probably if I were you so either either you have to replicate what you're currently doing in a new market but you have some of the risks that you've already brought up which is like you're all inbound based on foreclosures you have some of these other things you're not like the income is not necessarily reliable um I would definitely learn the advertising stuff for your own business cuz like whenever there's an ultimate version of the business that I'm currently in it's like they already did it and so now all I have to do is do it better than them and whoever bu that business is already gone probably and so it's just a bunch of Suits who don't know how this business works and so it's just right for us to just murder them I'm just being I'm just being super honest like this is how I see it um and so I think I would just like go 100% try and pants them um and do PBC like and like also do some of the stuff they're probably not doing well they probably aren't doing social well they probably aren't running like not as well as they could obviously their Billboards I know the Billboards that they run um and but I'll bet you they've got great sales training and I'll bet you've got they've got Great Floors of people and kind of infrastructure in place and so I would look at that I would look at their overarching model as well because I'll bet you they get a piece on the back end as well like because they probably vertically integrated as much as they possibly could um within the business that that they actually make more on every deal than you do so they can spend more on every deal like they can pay more like so they have they have ways to beat other people in all these different markets cuz they're National right exactly and so step one would be start advertising more because then they'll just immediately make more within your current market like that would just that might double your business if you just did that um and then number two is I would analyze the living hell out of them like that's what I would do and then think about like okay this is this is the future version of my business one can I replicate it two is there anything I can do to make it better 100% I definitely wouldn't change my business for sure I think that I think your advice is dead on it's just what I'm afraid to do cuz I don't know how to do it it's like I'll just go do in different cities but I guess I got to learn new things darn right yeah maybe we can help up Alex um so I'm Joel I have a CPA firm uh based out of Baker School California but during Co we went virtual so now we serve all 50 states um I have a lot of constraints uh but I think you know my questions would be you know how do you prioritize what's revenue revenue is last year was 2. 5 this year is probably going to be about three awesome uh margins last year 900,000 this year net was was the part going to be about 1.