Building a $1,000,000 Business for a Stranger in 56 Mins

if we were to just triple and get to a million this year would you be okay with that all we're going to make you so much money this is Ashley she runs a personal styling business and my name is Alex mosy and I own acquisition. comom which is a portfolio of companies that makes more money than I will ever need for the rest of my life and so today Ashley will be explaining to me her biggest business challenges and I'm going to try to help her scale her business $2 million in revenue and beyond all

right hi I'm Ashley caps I'm founder of AC Styles so we are a professional wardrobe and personal styling service that helps trans transform our clients confidence and save some time so Revenue we make about 309,000 annually 130,000 in profits that gives us about 42% in net margins so we've been in business for about 4 years and so far we've served over a th000 clients thousand clients yeah how'd you get a th000 in four years that's over my whole uh career the business has been for you've done a th000 yourself awesome super cool so my immediate

reaction was she serves luxury clientele and a lot of people who serve luxury clientele don't charge enough because they sell out of their own wallet rather than out of the wallet of the person they're serving or the value that they're providing so that was something that was in the back of my mind 42% profit margin you know healthy a little bit low given the fact that I figured this was like a solar printer thing so I was going to I be curious what the other costs of the business were to make this happen so who

do you help right now about 50/50 men and women typically in their 40s all the way to their mid-60s these are folks that are stay-at-home moms they could be frequent flyers they could be going up in their career into the SE Suite those that really value their time and really also value having expertise so how do you help them we transform our clients fashion style and confidence and also help save them time so we have two different phases in the way that we do things so onboarding phase phase one so we do a style assessment

so basically we establish Baseline with their current style a low style you look terrible like look at the mirror you look horrible pretty much okay we establish Baseline and then we show them where they can go so once we show them they can go that's when we go in we gut the closet we get rid of everything and we get them into some new outfits looking feeling good and then from there that's when we determine you know just based on their lifestyle does it make sense to work together on like a monthly level on a

quarterly level at that point we know we have ongoing styling sessions we put lookbooks together okay cool and we have like an on demand Service as well that they can text us if like oh I goty if you will pretty much so when you say you show them what the future looks like is that just like here's a like like looks of like other models or something like that or like putting together a style mood board and then we also prior to that we say hey just based on your complexion here's the colors that are

going to complement you and then based on your dimensions of your figure here's like the Silhouettes that are going to work best for you oh cool and then a big component of it is lifestyle like what are they doing on a day-to-day life and making sure that whatever they buy fits the life that they're living today and not just like oh that looks really cool on a mannequin got it initial reaction seeing phase one and phase two that ashy put together was good every quality business has recurring or reoccurring Revenue recurring means some sort of

membership or subscription reoccurring is like Coca-Cola you buy some Coca-Cola this month and next month even though you're not on a subscription and so the quality of a service or product is dictated by the percentage of customers that want to buy it again and again and again the idea is that you want to acquire a customer once and have them pay you for the rest of their lives so how do you make money important question so onboarding package that I mentioned 8,500 bucks that's over the course of 60 days then it goes into either monthly

at 2K a month or quarterly at 4500 a quarter and then right now we also make about 10% of our revenue from commission from clothes we get about 10% margins from the the vendors that we work with Okay and right now we just actually focused on having just this luxury tier in the past we had two different tiers and we focus more on one time and you realize you make more money on the luxury tier so you do more of that yeah love it all right so that's what you sell that's how you make money

where do you find them so right now we're doing AdWords we're spending about 300 a month with Google and then we're also spending about 300 a month with Thumbtack we have affiliates with other luxury like services so like matchmakers and things like that we host events and then also of course client referrals do you know what percentage of customers come from each of this uh roughly you don't know worries four are coming from Affiliates I think about a third is coming from the other two and then a third is coming from refer so kind of

like evenly split between referrals would you consider Affiliates referrals or not no I kind of segment those out okay so referrals is one Affiliates is another then paid ads between Thumbtack and Google yeah I like to understand what percentage of customers are coming from every source so that I can see like is sometimes there's one where it's like oh 90% of my customers come from this and then when I ask where they're allocating their time it's like well I'm putting half my time and this thing is getting me 10% of my customers and then the

other half my time is getting me 90% it's like okay well then let's double down on that thing and the next following question is like okay well is this Tapped Out is this an exhausted Source or can we do more and most times you can do more okay so that's where you get them from how many do you get a month so right now we're looking at about 12 total leads eight appointments 100% show for those appointments total sales four so close ratees 50% show ratees 100% 40 clients currently and uh one churned in the

last year okay these 40 clients still pay you monthly these are active yeah okay okay so they're coming in from different timelines so some are monthly some are quarterly some are annually just from different package testing we're going to probably talk about that in a second the 40 clients thing because I think you probably have a big Revenue opportunity there so what's the goal right now all right so you know just the easy five million revenue and really I think what we can do is because it's easy for me to get stylists to train them

is to build like an education component just like a totally different business I know yeah but have Stylus in major metros okay so have stylist in other metros and then the long term is to be able to create a training program for them like super long term like super super long term super super longm next lifetime oh I'm just messing with you but fundamentally for this business the goal is 5 million doing what you currently do or a scaled up version of what you do and in other met major metros yeah yeah no that's cool

that makes sense 5 million big number we can do it what's the problem so what's what's what's holding you back what's getting in the way leads okay we need lead flow we need more of them consistently and we just we need more at bats that's really what it is and also I haven't been able to be as consistent with content creation and I think there's opportunity Miss there for most small business owners as long as the core economics are good which a lot of times they're not once you have the core economics of the business

you have your price properly so you have enough gross margin you have good stick rates and people want to keep paying you over and over again they come back they refer their friends which actually has all of these things then it's kind of Shifting back to the front and saying we just got to get way more leads in the door we got to let more people know about it which is going to come down to advertising all right understand all that show me the numbers so 309 in total revenue 130 in profit 42% net margin

Blended CAC of 600 um LTV is 10K annually so that gives us a 16 to1 LTV to CAC ratio 600 in marketing spend show ratees 100% close ratees 50 okay got it from a basic economic standpoint her business is actually really healthy the fact that she's only lost one customer over a year out of 40 That's whatever 2 and a half% turn annually is phenomenal the fact that she has you know decent sh rates and close rates all of that's good and so me looking at these numbers shows me that she's delivering some core value

to a key audience and honestly it's just the N is low she just need to do way more volume and then do you have any other stuff by platform so Google we're looking at 3,400 for the year for 2024 cost per click $189 total clicks 1,800 do you have prices on the site what do when they click where they click does it show your prices or is it just like an opt-in page I do not show prices is there a video that's being implemented right now okay okay but I think that that's the uh big

problem is it's just like he and you don't give them anything right there's no reason for them to opt in all right we're going to make you so much money it's a lot of fun so when I saw 1,800 Clicks in eight sales it was clearly a conversion issue and so she's leaking a huge amount of prospects who aren't immediately ready to buy CU that's all she has available is like click you know click here schedule call and basically buy and there's no incentive and so I'm very interested to see what we can do to

solve that conversion issue because it could be a massive unlock for the business so despite like basically no incentive for someone to actually book a call you're still making eight sales and so I think that what's happening right now is that like you the show up rate and the close rates you have like you're just basically skimming the absolute people who are like are in such a dire pain and they don't and you don't know them because they're coming from ads right right right like if you if you're in that situation then like like this

may sound exciting for you but like you could probably 5 to 10 x the sales of the business just by fixing this like we could do nothing else and you could just do that so we'll get into that in a second but okay the good news is that even with the massive amount of inefficiency that's there your ltbd CAC is still really strong it's really good and I think we're just losing we're just leaking a lot in the in this process okay show me the thumb tech one okay also people that are in pain right

now CU they know that they're searching for it so 6K total spend Leads Here 58 leads 38 bucks a lead total sales eight CAC 750 same LTV okay thing is thumb Tac is like 90 to 95% unqualified in terms of purchasing power M so it it's good because it was a way for us to rank higher for SEO through this page through your thumb teac page that you then pay extra to promote yeah on thumb teac okay cool I mean 38 bucks at least not bad um given the price point that you have but the

issues that they are unqualified so do you actually do you have a minimum income requirement I would say for this new model a million a year in income yeah okay so yeah so this is definitely a top 1% 1% because 8,500 Plus what is like it's about 25k all in for the service the other the thing is they have to have money for the clothes as well so you're looking at about a 40 50k let's just even say 25k year spend in close Average Joe schok canot yeah I love that Ashley is going after high

income earners I think a lot of business owners are afraid to go after high income earners and I'm very happy that Ashley's already identified rather than trying to say like I'm trying to come up with this diet light really mini versions she's just leaned into what she's obviously really passionate about about and just trying to find the customers who can actually afford to do the type of work that she wants to help them with she doesn't compromise her quality to meet lower-end customers and I think that's really cool to be clear I'm not saying that

there's not a space in the market for something like that it's just obviously not her passion and so she should stick to what she loves is there a specific like life event or something that happens that triggers people into like getting getting into this buying cycle yeah so it is typically a a a transition moment I had a baby my body has changed none of my clothes fit that's for women I got divorced both men and women or I'm just I'm getting I want to start dating period my image doesn't match my status as a

sea Lev person or even VP yeah so that those are those are the typical triggers okay I feel triggered um no you're good okay so that's the thumb D data tell me more about the affiliate side the the the mat because you've got I've got I get both of these these I understand the referral side I understand both your paid acquisition Parts I think the continuity is lacking we can work on that I think there's efficiency ad funnel we'll talk about that I think Affiliates is kind of the last piece uh before we dive into

like figuring out what we're going to do so for those you who don't know what an affiliate is come closer I've got a book $100 million leads and inside I'll I'll read you the definition so Affiliates are independent businesses that tell Their audience to buy your stuff and so Affiliates seem like referrals on the outside but are actually much different under the hood first they have their own businesses and do their own advertising second they agree to offer your stuff to their engaged leads in exchange for money free stuff or both both so she has

these Social Clubs and these matchmakers that are existing businesses that advertise their own services and she can kind of harness those businesses to just funnel some of their leads her way for free now she has to do some sort of deal with them to make it worth their while but sometimes some businesses are like oh you help my customers too and I don't want to do that so here so basically they we it's just like a lead pass through so they make the introduction and we offer a complimentary style assessment to help help them get

their dating profiles ready it's really just a glorified sales call okay yeah and so you have these mat how many matchmakers do you have who refer you customers on a regular basis so combination of private social club and matchmakers we have about six okay how did you find them Googling them and reaching you reach out and did it that way mhm and what percentage did they send you so as of this year it's about a third ooh M interesting so when I see that she's got only six people that are sending her a third of

her business and then when I asked how she got them she just said oh I just kind of like Googled them and reached out I was like I had an inkling that she had not done that much work to get a third of her business that sounds like onetime effort and then ongoing new business like that's the type of high leverage work that I love to see because then each of these Affiliates become consistent nodes of business for you so even though the customers themselves may or may not recur obviously she is is a recurring

Revenue model but the Affiliates themselves become consistent traffic sources where they send every month one or two customers one or two customers one or two customers and so all we have to do is say how do we go from 6 to 60 okay cool it's cuz it's like very aligned audiences yeah they're literally already buying the types of services related to what you want it's great I feel like I'm pretty clear on what what he said okay yeah but if you were to become an AC Styles client okay here's an outfit you've got these really

nice Olive under tones dark features so navies Browns these are your tones and there it is in action I like the we want to look like the one on the right we actually look like the one on the left you know what I mean I could be Giga chat this could be me thank you all I got no I appreciate it this is good okay so you want to make 5 million right and we're at 300 so that's a 17x from where you're currently at right and so if we were to just triple and get

to a million this year would you be okay with that totally down cool cuz then going from a triple to a 5x from there it's like because the thing is the business will usually change there's there's something called the Chinese rule of three and 10 which fundamentally just means that sysems break when they triple and so I like to think in in triples in terms of unless there's some massive order of magnitude change that we can do but the things that we have right now a handful of these are triples independently and so when put

together I think we we absolutely could get the five but I just like setting goals and expectations kind of kind of that way so that you're not like oh my God I only made a million dollars this year poor me so Ashley's about to come over to this side of the table and I'm going to walk through a bunch of solutions I think can help her grow our business but before I do that comment below and would love to see how you guys think and how it compares to what we ultimately end up doing all

right that was awesome you did great I've got some notes why don't you sit over here and we'll gaml it out I think what I want to do is break this down in terms of who so let's talk about the Avatar a little bit because then that'll inform the offer and paid ad stuff a little bit more to get it targeted and then clean up the funnel okay so first thing I want to talk about is going to be the Avatar is getting it on who you are going to serve cuz right now you serve

a lot of people not to say that it's a bad thing but I think over time we are going to get narrower so that we can make our value proposition a little bit more compelling for them the next is going to be paid ads uh funnel which we're going to look at the pages and we're going to look at the offers so that we can see okay can we tweak something we add a lead magnet here that would get the right people and word off the bad ones and is there kind of some process things

that we can do that just will stop the leakage the third piece is still Acquisitions it'll be Affiliates that I want to cover and then the fourth uh what I want to hit on is uh continuity and so those are the big four that I want to hit on we can talk about the corporate thing that you mentioned in between my initial gut reaction is not yet because the thing is is like if we can get to a million probably we could probably given the things that I think that we're going to uncover here you

could probably get to like two is two to three just from some of the things I'm going to show you in a second cool okay then maybe you get to there you're at three you might be like wow what if I just kept doing this rather than the other thing um okay so Avatar Clarity do you have any idea if there are some customers that are like way better than others or that you enjoy enjoy working with more like what's your dream customer and just like work backwards from there stay-at-home mom okay frequent traveler kids

with many social events mom who has kids with many social events yeah okay like one daughter just got married son is having a baby that kind of thing so usually mom so it's Mom right so there's kids obviously cuz it's Mom okay got it there's a few of these women plus money got it and they just want to have new outfits for all of their trip like socials kind social lights private not public people yeah yeah I understand okay so Mom socialites is that the number one your favorite Avatar and then men CEOs okay by

percentage of Revenue is it 5050 yeah it is interesting okay CEO man huh do you ever get cross cells CEO men gets wife wife starts or husband starts typically wife starts interesting this is kudos to Ashley that she really understands her Avatar and she understands kind of the the part of their life that they're going through and what path to status they're seeking to fill with her services and the reason I was pushing on this is because sometimes you'll find a business owner who serves two type of customers hates one loves the other and then

still feels like kind of beholden to keeping that one that they don't like because maybe it starts paying the bills and then also the reason I asked for the split is this as as silly as it sounds sometimes it's like 30% of my business is this customer I hate and 70% of the business is customer I love and in those instances it's like great get rid of those ones and double down on these ones that you love now she happens to love both and so maybe in the future maybe at 3 million maybe at 5

million a year I would maybe look at this to revisit and say hey now that we've had way more reps do one of these customers stay longer are they worth more some of these you know people refer more than others but right now given the data we have I don't want to have her pick I'm cool with sticking with both pay ads funnel can we pull up her uh Google ads oh so they're not running right now oh they're not running right now okay do you know what page they go to let's go to the

work with us page personal styling it's probably the closest okay is it get more info if we click that will that take us there no Okay click on that though that takes us to so right now they're filling out this air table form that and then I send them MH a kind of a brochure that breaks down our services and then gets them to book a call so that's a very simple funnel all right and so this is them filling out they basically check these boxes and then scroll down okay so then we have the

contact First this is just a big application yeah okay so first thing that we can do on this one is is and obviously this isn't I mean you could okay there's a lot of things here but um wherever you're driving your traffic to so whether it's the homepage or it's this page you should probably have some big lead magnet that people are going to want what's something that somebody like that would want a lot so that's been my thing after reading offers and thinking about a lead magnet it's like what appeals to these people and

they don't want to sit there and like get a checklist of how to go through their closet themselves so the only thing I could think of and this isn't very scalable is the complimentary style assessment but that's one-on-one with somebody mhm and that's okay though cuz I mean you're still getting them to more of them to opt in but right now is the assessment the thing that they're booking on the Google ads page today it's just a a call okay so it's not being positioned as as that so for like the the 1.0 version is

uh style assessment is what you can basically promise them uh on the landing page but I was thinking more something like really tactical like the perfect outfit for you like one perfect outfit or something to match their skin like like your ideal colors like that would be a cool one cuz like that doesn't you have to like put a whole thing together it's just like oh this skin cone you know there's like 10 tones and you just pick the one that's appropriate for them yeah okay so we we're going to we were going to do

that next and and also something else we were going to do the one perfect outfit but it's it's so nuanced but then we were thinking okay what if we just share with them hey here's how B like what are some of the steps that they do to prepare to if if they were to work with us how are they invested so we were thinking like take their measurements having them do some of these steps like create uh creating a a mood board themselves so we want them so for a lead ma to be really valuable

we want it to be risk-free easy and fast and so those things require effort okay and so we don't want the Avatar to work to get the value we want them to just click and get the value okay and so I think what we think about is like I like I think this is actually really interesting this is just me me personally so maybe I'm a CEO man but it's like there are some some skin tones that combination basically it's like you have a combination of hair and skin tone and eye color that is unique

to you and between all these different permutations there's a hundred different variations people can have and they have a different color palette that would be unique to them now you'll know behind the scenes that there's probably like eight different you know color stylers or whatever and so I think either doing color cuz that feels like the easiest one degree more Nuance than that would be a specific style being like you know Street Wear hip-hop like whatever you know what I'm saying like you know that better than me professional casual yeah exactly and so I think

that this is like you could do this tomorrow you don't have to change anything just by repositioning lead magnet so the reason that I'm hitting so hard on lead magnets and I have a whole chapter about this inside the leads book is lead Magnets How to engage your leads is that she has this huge leak in her in her funnel right 1,00 clicks and only eight Sals so it's like we can solve this with the right lead magnet now most people give terrible lead magnets so so a lot of people give no lead magnets the

the the few that do give lead magnets often give terrible lead magnets and so we want to have an exceptional lead magnet which typically means we have to work more on the front end so that our Prospect has to work less and so it's kind of like pre- digesting the food so that they can just immediately get the value think about you as a baby bird just kind of feeding your prospects the value and as a little Pro tip for you if you have the choice between two lead magnets one thing that's more valuable but

takes longer and the other is less valuable but immediate this is the one that customers will rather have especially as a lead magnet which then can lead to a service that looks more like this I would experiment with the different headlines there and then we need to measure the conversion rate of the page I know that you've turned them down can you pull up the um the uh numbers the interesting thing here is like 1,00 clicks I think we could be able to get somewhere in the neighborhood of like if we're doing this right like

500 leads from that amount of spend oh and just if literally we just need to nail this because on a Google ad High intent search like this you should be able to get like 30% of people to op in so from a benchmark perspective to this to something that is right for this audience the only reason we were able to identify this whole and huge opportunity in Ashley's business is because she actually had her data and so it is amazing to me the amount of business owners who have no data on their business and they're

like man I don't know what to do well once you get the data the data can often tell you where your opportunities are and so here there was a clear leak now she might not know the benchmarks for this but having been in the industry of business typically an opt-in page for some sort of lead magnet with qualified traffic can get somewhere between 20 and 50 sometimes 60% of people to opt in for it if it's very clearly defined and there's a good match between the traffic that's coming in and so for her me saying

I think 30% is a good Benchmark is kind of where that came from like so if someone's looking for personal stylus near me or personal stylus La then it's like what is the first piece and like I always think about like our offer is you've got all these steps that someone has to take can I peel off the first one even though it's something that I normally charge for what's my actual cost it's going to be time can I template some of these things out so that I can still provide a lot of value but

not have it take too much of my personal time and the cool thing with these um like kind of like more costly or unscalable lead magnets is that you only have to give it to people were qualified so you are not obligated to like you can choose to do this only if someone who meets these qualifications and you just say that in the landing page okay so it's like hey if you're a mom with kids and a social light or you're a CEO guy and you're not getting um what you want then like schedule one

of our style assessments where we'll go through personally your skin tone your hair color your eye color and find the things that will immediately make you look better just within your existing closet cuz that's like again they don't have to do anything and they'll immediately look better that's like immediate value not a lot of work okay so i' be like okay that's what we're going to offer so now I can get more people to apply now they're going to fill out their stuff and again if they're not qualified it's like well you didn't read the

headlines so don't worry about it and then for them I would probably just send them some free things so they feel you know they still gave them something but that would be the thing that I would do to improve the funnel right off the bat without really even seeing the funnel is clear headline around what they're going to get sub headline is either an image of like almost like a before and after of style or some sort of image that shows you know white skin brown hair don't do this okay and then they're like oh

shoot I do that and so just like a simple thing that they're like shoot I do that and then they're like oh my God I need help and so all we're doing is increasing deprivation so that they they take the next action okay so that would be the lead magnet component that I would do for these paid ads now I think that you have the scheduler so they they apply then they schedule I know you're going to put the video together yeah there's the video before the call that gets them to book and then I

would probably consider sending them a second video between booking and showing okay and then that does a little a little bit of the pre-sale for you and I think about this in terms of like what are those things that you repeat on a regular basis on the call so there's usually like in every call there's kind of like a little bit of a sales pitch that occurs where you're like okay so let me tell you about what we do I just try to put as much of that before the call okay so that I can

spend the the majority of the call on the person the decision-making process rather than basically have this like pre-recorded script that I have to keep reading over and over because it tires out you ties out your sales team eventually and so I would just I that's how I would I would try to do it I think that if we can do the lead magnet we can capture more leads I think if we add the video to the to the landing page so it would look like this so we have our page there we go we've

got a little video here and so then we have our little scheduler underneath now this Booker we should have our qualifications so we want to have like income right do you do you ask for income no I would ask for income or budget if you only knew two or three things about them to make them qualified what would you want to know are they open to it's a good one okay uh open a change yeah okay what about start date yeah that too okay the budget's really honestly the biggest thing okay well then I would

definitely have that be prominently featured do you think it makes sense to put the pricing no on the no I don't think so I think that if we ask for qualifications and we describe the services um that'll give us 80% and then basically you just want to find cuz the thing is is like you don't want to just squ because there's some people who will be in who have a smaller income but really want this yeah and so it's finding kind of that sweet spot which is like if someone then says like I want to

start immediately I'm super open and their budget's like medium then you probably take the call right if they're like my budget's zero then like okay well it doesn't matter how muchad you want it it's not going to work right so two important points here one is that when you give a very valuable lead magnet away you don't have to give it away to everyone and so we want to make our lead magnet super valuable but only give them to qualified customers and so that's what makes it kind of like a honey trap for the right

type of people number two is that what I'm going through is baned which is budget Authority need timing and so that's what most people need in order to be qualified to then you know get closed and so asking those things kind of in the friction process helps push out the bad traffic and help us judge and score the leads that are coming in so that we can see which of these have the highest leg of closing and then prioritize low leads to sell and so I think that on your qualification question which you'll have on

your scheduler we just asked for the fewest amount of questions that are required for us to make the decision whether or not they should stay or not okay all right so now we just have to figure out and this is where like the headline is like free you know look better you know dress for your just obviously you know your uh your your tone whatever and so this is something that you will just test more than anything else and it'll be relevant to whatever your little freebie that you're going to give them okay and I

like I really like the like existing clothes so like how to best use your existing closet I think is a really strong angle because now they're going to come in and then you're going to be like oh you don't have one of these oh you don't have one of these ah like and then it's like and then it's then you're like you're in the sale right so this is probably what I would do for the Lander and I think that if we did that that'll give us more throughput that'll give more leads in terms of

followup you currently don't really have followup other than like manual hey checking in kind of thing MH so if we want to have the 2011 version of this we can take this scheduler and put it here which is like the thank you page and then just make this an opt-in where we just ask for this and then if they're qualified they go here and if they're unqualified they go like free thing you just give them a free thing that way you don't have to waste your time and they don't they don't fill up your calendar

oh okay and that's like with something different than the than the either of these you're saying Yeah okay or you do an automated version of the same thing right right and so if we wanted to to make it seem a little bit more we could put skin so like it it'll feel personalized if you're like what's your skin cone what's your hair color what's your eye color that might be an easy thing that you could ask and people like oh okay this is personalized and so if they say they have no money then it goes

to the here's what people who have brown hair and white skin and whatever and then they can just get that free thing and then if they are qualified and have the money it's like hey great all you got to do is you know book your appointment below and uh look forward to talking to you and then you just work the lead confirm the appointment just like you normally would but then the lead is not so much about okay so tell me about where you're at with your style it's I think you'll do that on the

sales call okay but I thought that with this skin tone thing well we'll we'll deliver it on the sales call delivered on the sales call right I'm just trying to think how that would how do you how do you fit that into the script so the way I would think through this is that I'm going to have like 10 templates that I know that are color palettes that work for these 10 you know characteristic people and if I have asked their skin hair whatever up front then I know I'm going into the call which template

I'm going to be using when I talk to them so it's like hey oh you're blah blah blah actually you know what I would describe you more as Olive than white and I think this might actually be a better thing for you cool okay and then you go into your normal sales process which obviously works I don't I don't even want to talk about sales SCH you're closing 50% okay right now it's like book a cost a sales call basically and that's like obvious what I'm speaking about but then this feels like oh just have

a call about skin tone well this is sales yeah and then it it's not an issue because we're they're already qualified MH you're only taking the calls with people who have the income so you're going to take more calls you're also going to hear more nose but you're going to make more money like fundamentally I could I could just say like I could run an that just said hey I have this really expensive thing book here if you want it and this is the price and the people who h on those calls will be incredibly

qualified but if I just said I have this really free amazing thing that'll help you with the first problem let me help you with that and then people are like oh but do you do any of ah you know what I do do that stuff it's so funny you ask and I get 10 times the calls and so if I close 30% of a 10x number I still close three times the deals okay does that make sense and so there's a little bit now part of it is because you're selling out of your own wallet

in terms of time yeah and so it's because you're like I I have my time and I understand that but all we have to do is just tweak these things so like if you have somebody who you have the information about them you have the income and so what I try to do for these is band so budget this is kind of like the um Authority can you make the decision need how bad you want it which is your biggest problem and then timing when do you want to start if I were to accept you

when when you get started and so you want somebody who says immediately I'm in high need I can make the decision and I have the money and so that's fundamentally what these are and if you want to add your personalization of like skin and hair and what You' know this better than me you know eyes upload your photo yeah oh really yeah that one's going to be a lot of friction so I would consider having that in the Fallout process okay because someone's like take their phone out they got uploaded pictures oh what because think

about this there's a decision they have to make they're going be like what picture am I going to pick and then it's and then they're gone they're like in another world and they're in their phone and they're like oh yeah I forgot I have to call Sandra back and then it's like they're off I mean I can really just and train somebody to just do it live yeah I mean as many things as possible you can do like we want to decrease the friction here for qualified people right so there's good friction bad friction so

good friction is something that increases the overall quality of the lead and gets out people who uh suck bad friction gets everyone out a slow page load time for example everyone leaves good people and bad people we want to get the type of friction that only bad people leave and good people stay okay and so if we have budget Authority need timing we have the specific spe ific things relative to the lead magnet then your followup if you want like hey if you can send me a picture it'd be great if not I can just

go off of your Facebook profile or something like that then they show up to the call you have your one of 10 plates that you already figured out ahead of time that then sets up the sale which is for you it's like oh you don't have this this this and this all we're doing is expanding the gap of like you're here you want to be here oh you're missing all this stuff oh you know what so funny I think you'd be perfect fit for weh have can I tell you about it and then you're in

got it makees sense yeah okay so this is what I would do to change the paid ads funnel can you spend more on this yeah well I'm like dude if you if I had a machine in front of me where you and this is without you doing any of this that's the crazy thing that's without you doing any of this right so if I said okay um instead of paying $3,400 uh a year what if we paid like $3,400 a month yeah well that would 12 x your business that'd be chill right yeah I mean

it beats the S&P 500 where you put a dollar in and get $23 back within the next week it's not bad right a lot of business owners are scared to spend more money on marketing because they don't have the data to show what the return is if you have a machine in front of you where you put a dollar in and and it spits out $16 back in 30 days why would you have any kind of limit on that budget you'd put as many dollars in that machine as you possibly could right of course and

so she has one of these machines and probably just in preparation for this show uh she got the LTV to CAC ready so she could see what a discrepancy there was and if you don't know what LTV toac is it's the lifetime value of the customer relative to the cost you acquiring them so basically how much money does it cost me to get a customer and then how much money do I get from that customer once I got them the cheaper it is to get a customer and then the moreone money they give you the

greater the discrepancy between those two numbers the more money potential there is in the business and so this is fundamentally the economic Arbitrage that exists at the core of every business that then fuels all the growth of everything and here's the craziest part Ashley is getting $23 back for every $1 she puts into her machine and she's only spending $3,400 per year in this machine but that $3,400 times23 is generating $78,000 in income within a year like imagine investing in the S&P 500 put $3,400 in at the end of the year it's 78,000 you'd be

like holy cow this is the most amazing investment in my life her business has that inside of it and she's like hey I don't want to put too much in I'm just G I'm pulling her chain but a lot of businesses have these huge treasure troves that are just sitting there and not being leveraged I I'm going to put an order of actions here so I'm going to tear this off because and we're going to save it and at the end we're going to order everything okay so the next thing um that I want to

go over is the Affiliates cuz I think that's really important you would not touch Facebook ads well you already have an acquisition Channel that's working and super profitable so I'm less likely to want to do that now okay so um because you can spend more if you wanted to yeah yeah let spend more okay but we'll do that I'll do actually put that as a note for me so I'm going to put steps in here for you okay um all right let's talk about Affiliates so matchmakers yes okay so you have six matchmakers right now

uh four matchmakers two private clubs okay so I'll go I mean whatever it doesn't matter yeah you're good okay so you got six Affiliates yeah you've got four four matchmakers and two private clubs okay got it so how much time did it take you to get each of these Affiliates not much time okay we did a cursory Google search of LA and found that there were multiple hundreds of the people who do this so in a magic world what would it take for us to go from 6 to 60 yeah I think not that long

okay and each of these sends you people on on a consistent basis yeah what was the process that you did integrate with them I met with the owner and so you did Outreach to get them manual Outreach okay is it like phone calls text email DM email okay manual Outreach um explained that we can offer a complimentary service to their new clients oh cool and you know that we we could close them love this almost like it's directly out of the affiliate section in the book wherever it is here it is kly gutter sits in

there all right anyways keep going and that's and that's and then they would and what percentage do you close to the people that you talk to um that's been the hard part is like talking getting them okay do you know how many Outreach attempts you did to get to the six um probably about 40 okay and I I want to I want to paint something for cuz I think it's going to be interesting okay it's not often that you find you know a single point of Leverage in a business that's as clearcut as this one

is for Ashley when I do find them I get very excited about it because it's like these are the things that can change people's lives right it can change the income they can have the the the neighborhood they live in the schools their their kids go to and just completely can change a family tree for generations and so when I find these types of opportunities I just like I I light up because I'm so excited about it because I know what what's going to happen I know what's going to happen later once this lever gets

really pulled when she said that she'd only emailed 40 people to generate a third of her Revenue I'm like 40 emails because I have a context of what kind of response rates cold email gets and it's certainly not you closing 15% of cold outbound normally if you get 1% or half a percent you're thrilled and so she's at like 10 times the efficiency 15 times the efficiency of what normal outbound does and so as soon as I saw that I was like this is it so you sent 40 emails and you were able to close

Six right yeah okay now how much money do those six so it's a third of your Revenue right so it's $100,000 a year roughly okay so think about this so every one of these emails need you $2,500 yeah that feels like pretty good return yeah for sending emails probably copy and paste right h two more of them what I have I have a wild idea what if we sent 400 emails yeah that's it yeah if Ashley just goes from six to 60 Affiliates and they're currently a third then that would be a 10x of something

that's 1/3 so that alone would more than triple her business and here's the crazy part what's the cost of sending 400 emails it's even less than the paid ads so her LTV a c on this particular channel is even better than her paid ad Channel which is already insane I don't even want to mess with the affiliate process that you have right now yeah you're reaching out manually is obviously effective you sent out 40 emails like if you did that for 4 hours every day right that I mean you'd probably be able to send even

if you did them completely personalized completely manual the way that you probably did you don't have to buy any software like you can just send the emails you'd be able to do that in like a week or two weeks if you want to spread it out it's like not a lot you know we'll give you we'll give you we'll give you the weekends off so we'll go so it's 40 emails a day 40 emails a day I'll give it to you in a month how about that so we'll do 20 emails a day 20 emails

a day that feels like that's that feels reasonable yeah okay cool let's do that best place to like pull the data good question cuz I think it's the matchmakers but it's also could be executive coaches M could be um high-end fitness trainers people going through a transformation weight loss weight y they need they need yeah for sure I would think about about I think you have them these in segments right and so you've got high-end trainers high-end pts number one you've got exact coach right mhm you've got the dating people right yep you've got I'll

give you one divorce [Music] attorneys so that's four lists these ones you can find probably from Google this you can find also from search and Instagram there's also like list Brokers so you just like Google list broker whatever City and then you can usually they'll have this massive National list and then you can W it it down to a a localized area can you do any remote Services yeah yeah we definitely I'd say 50% up like especially during covid we only work virtually but I I prefer you prefer in person that's fine that's cool I

like doing this stuff in person because there's there's so much more richness to the interaction I can see someone's re I can see I can see minor expression changes and I can gauge how my you know recommendations like are they confused by what I said or like are they I can I can sense if they're like not they don't want to push back cuz they're like they don't want to insult me or something like that I can see if they like they don't really believe it it's like okay I need to dive in here more

and make sure that like I can break any belief that's here or maybe explain something a little bit differently I don't think I get as much of that online or in like a zoom setting and honestly I just like I mean I love business and I think that when I have like kind of the talking head videos which there's plenty of on this channel I am a little bit more intense in those settings because I'm when I talk to a camera and there's no one else there I'm basically talking to myself and I talk to

myself a little bit more rough than I would talk to somebody else and so I think in this setting you can see that like I don't like I'm Pro entrepreneur you know what I mean like it doesn't matter whether you're making $100,000 a year or you're making $100 million a year like you're in the game and for that you're eternally somebody that I you have my respect okay um so this obviously makes money and doesn't require any Financial Risk yeah and is also a compounding way of acquiring customers because you did this work think about

this you sent 40 emails one time and then you got six people to send you business for good not bad now what do you do to continue to reactivate them host events okay so you do so you do events okay so for the Affiliates yep okay cool um I mean like especially for like the matchmakers they're happy because their clients are getting made over they get better pictures therefore they get better matches so I love that yeah really good so I think uh do you do that like regularly like it's on a calendar or is

just like okay good cuz that's obviously that's why part of why it's working so normally one of the things that that falls off with Affiliates is that they don't stay activated they don't keep referring you and so you have to like work them like customers like it's another set of relationships but if you can put them all together an event on a regular Cadence where like all of the dating coaches bring all of their people and they all look good and they all get to meet each other like that's value for everybody it hasn't quite

turned out like that but just like more oneoff okay like hosting events with the individual company okay well still that works yeah yeah and I think if you do like one or two of those a year or three a year I think that's like more than enough to keep the activated and I would I would try and figure out a way to put them in the same room just because I think you'd be like I would be pitching on collaboration rather than competition which is just like hey you have single people so do they maybe

they that's true actually yeah they're all single yeah they're all single and obviously looking to mingle and trying to look at their best life like um it would also be desperation City but anyways uh so that's so that's the affiliate piece okay I I feel I feel really good about that okay and so in terms of list I would go list brokers s social media and Google first that' be like my first thing and then I would look at list Brokers once I ran out of those but between like these four sources you need to

send 400 emails it's not that bad and then what's crazy is like if you send it and then they don't respond you could send it again okay next one's continuity so let's talk about that okay so this is about increasing LTV right so you already have pretty good LTV but I have this feeling like there's something that we can do better okay so right now now LTV is $10,000 right yeah okay so walk me through so someone comes in so I come in I'm CEO $88,500 I pay you for my whole lookbook Etc transformation y

okay and so the delivery of that transformation is like a lookbook primarily and then like yeah walk me through it a little more no so uh this assessment figureing out where we're going to go with your style your look then going through your current closet right getting rid of all the old stuff actually go to their house yes okay get rid of all the old stuff reorganize the closet so that it makes it works for their life okay so closet tear down yep and then we document we do an inventory of everything in their closet

so that way when they text us or they say hey I'm going to Turk St Kos hey great pull this pull this pull this uhhuh and we can give it to their um housekeeper or whatever here's your packing list okay then we get new outfits new clothes right now our promise is about 5 to 10 new outfits okay we don't want to get the whole new wardrobe right but you know enough to like okay I'm excited I feel good mhm and then that's when we make the determination okay does this make sense given your lifestyle

you travel all the time on a monthly level or accordly level yeah in terms of the continuity you mean well do you have turn on the continuity do a lot of people so people stay and they keep paying if it's in front of these people not the one time people these people they don't what was the one time thing so it was priced at 3500 uhhuh and you just did this but then didn't have anything else yeah okay and it was um it could be all virtually oh okay got it or it could just be

like a one day shopping way better to do in person it's a different relationship yeah yeah no I like that I'm I'm I'm a fan okay so and then the ongoing price point is what on the back end uh 2K per month per month or 4500 so LT so $88,500 and then $22,000 per month so so we should be at now I'm guessing that you have a lot of grandfathered people of those 40 customers that are paying less yeah okay what are they paying um 1,500 monthly yep week or per month month okayo was like

wow okay uh and then uh some are on like 1500 quarterly okay got it got it I'm guessing the majority of them are, 1500 quarter yeah okay got it because then it's 500 bucks a month because this just all transitioned in September we only have like two people currently on the new system okay so most people are at $1,500 so if you have call 38 customers who are at I'm just going to say in general right $500 per month because it's 1,500 per quarter I'm just looking at Revenue yeah okay because this now makes sense

with the revenue that you're doing okay cool so the vast majority of the money is actually in a recurring Revenue base MH that's not bad that's good yeah that's really good and the turn's low so all that stuff's good okay so I actually don't really want to mess with this that much because you have a low turn what's the percentage of people go from here to here now that I've just said hey we're only working with you on a reoccurring basis it's it's good right um the thing is I'm almost wondering if I did you

say that yeah good I'm almost wondering if we kill this and just do the quarterly because this seems to be not most people okay do you think that it's better to simplify things or just still keep it no I think you can have it what happens it serves as a price anchor okay so even if only 10% of people take it it increases the people who take that one okay so I don't think it's actually a mistake that it's there okay cuz if you're like cuz they had the reaction I did I'm like $6,000 a

quar I'm like Jesus like or just do $1,500 like oh no that works I'll do the $1,500 no no no it's 2K a month or 4500 a quarter uh with this one yes okay so you're saying at the at the new price point yes it's at this okay but this is brand new and here you have all the retention that you have so I dove into her continuity because there's oftentimes a lot of opportunity here in terms of billing Cycles in terms of pricing in terms of Ascension process to get more people to go from

front end to back end most of her stuff here was working and I'm trying to be mindful of the fact that she's she's a very small business and she has limited resources limited time limited capital and so I want to be really selective about the things that I recommend that she do and in what order so that we select the things that have the highest likelihood of working that have the lowest you know initial cost in time and effort to make uh happen even though I probably saw some opportunities here that I think we could

exploit later for now I was like this is good enough to scale we'll deal with it later once we achieve more volume and then we'll have more data that can make that can inform our decisions even better and most importantly we'll have the resources in the cash flow to be able to enact those changes without overwhelming Ashley yeah yeah okay but you haven't had any issue with sending people into that into the $4,500 a quarter either I mean the few that we've had no but it's the same take rate yeah okay yeah so I'm fine

with quarterly billing okay so if you have monthly and quarterly that's fine okay I'm good with that yeah so it's if it's now um 2K more SL 4500 per quarter um but even if like 90% op into this versus this oh that's fine totally fine totally fine that's great no big deal yeah all that I mean honestly we'll just like I feel comfortable with that but I always let the market tell me so like I just keep edging up the price until people stop saying yes and then I'm like okay that's about right and then

and you kind of back down a little bit and you're like that's my price now I know that this for these for these types of people that's the number that they're willing to pay unless we change the Avatar the marketing or the messaging that's going to attract these people and they're willing to say us at that price okay okay so from a continuity perspective I don't think we Chang that cuz I think we just changed it so that stays the way it is I think the $8,500 I know LTV is $1,000 but $8500 for the

tail down and then you have the quarterly and so this LTV that you have here is probably going to go up it'll just keep going up over time right okay great so I mean honestly the so the good news is the actual business is strong okay so you have goodish margins uh 42% continuity has almost no turn that's great LTV CAC strong and so the real leverage with this business is that we just need to do more all right so this is this is going to be the priorities in terms of how we're going to

do this all right now you stopped spending money on ads why cuz we were adding the video and we were adding in the you're fixing that stuff first and then Okay cool so this is what we're going to do so video sales letter plus lead magnet so plus the B qualification so budget Authority need timing budget Authority need timing plus skin tone color analysis personalization yeah yeah Okay cool so that's number one so once we fix that that's a that's a conversion mechanism so then what I want you to do is increase your ad spend

and So currently you're spending 600 was it $300 a month so why don't we just go to 600 how much actually let me ask a question how many can you handle like how many more leads could you handle than you currently are more like how many more like that convert into new clients yeah well like how many calls basically it's a call thing so how many calls can you take to turn customers you're currently taking 12 right something like that yeah easily could double or triple that okay so let's go with uh 600 to 900

per month cuz sometimes the lead cost might go up a little bit that's okay just like so basically you might get a little bit less efficient but that's fine cuz you're still you have really strong TVD C so it's not a big deal all right number three is we need to send the 20 emails per day to Affiliates plus one event per quarter to keep them activated plus four affiliate types that we went over all right so this is a big three so the reason that I put it in this order is that uh she

was already working on the video sales letter and so it didn't need like I wasn't really going to change anything she was already doing so I was basically like go put this in place and just add the lead magnin which is really just like you know you put a PDF together it's an afternoon and you change the headline on page it's not a huge lift there increasing the ad spend is literally clicking a button so the first two things required basically no effort maybe a half day of work maybe one day total that could in

of themselves double triple the business then I was like okay the next big lever which is the affiliate play is to then let's 10x the Affiliates that we have using the tried and true Channel you already are doing and just do way more of it but that requires work and focus and effort she has to Google the people she has to find them then she has to reach out and she has to personalize those responses and so that's going to take more time and so I wanted to just knock out quick wins that she could

just do with a click of a button in a day before getting to the kind of like the more mey things that might take a few weeks and then I don't want to mess with the continuity so those are those are the like so if we're looking at like how much could this do it's like okay here we have a 2 to 3x here actually I'm me to do this because Michael will ask me to do this so we've got a 2 to 3x here that we have from this guy yeah I think this if

I knew what the conversion rate was on your page so if you sold can you go back to the um yeah okay so here so we got eight sales this year so it's like one like a little bit less than one a month right so so I just wish I knew how many leads were coming from Google I just really wish I knew that number and those eight sales were those just like phone calls en closes so 16 calls created eight sales kind of thing yeah okay so and they weren't from the ads they were

from search got it but then they clicked on your ad you got I don't even know if they clicked on the ad okay so we're also going to do this before we put in the ad spend so 1.5 so this is 1.5 we need to get attribution tracking okay because we have to know like the first step of running ads is know what happens otherwise you're just spending money in the dark so obviously I think you're you're getting a return by accident rather than on purpose okay and so let's get the attribution tracking in place

so this is going to go we'll use blue this will go up here all right so you'll fix the funnel yeah you get the attribution tracking in place I think the funnel lift could very well like this this this is going to sound wild this could somewhere they R of like 2 to 5x the lead flow you have just doing this especially with a good lead magnet okay now the next piece is that each of your Affiliates were a third of your revenue and if we were to 10x that then we would 10x 1/3 which

would be a triple if we did this and so the result of a called a 2X to 2X and a 3X would be a 12x which would take us from 300K per year to 3.6 million great we on our way excited yes boom thank you now you bet you're going to crush it so Ashley was amazing I'm super stoked to see how this pans out for her in the next 6 to 12 months and you know see how her numbers uh go I'm very bullish on it I think she's great if you like this type

of content of actually diving into real business owners real stories I personally loved making this I prefer making this type of content but if you guys like this tile please let me know I'll probably end up just making more anyways cuz I really like it but either way let me know and then it'll make me feel better about making more of it for you