Building a $2,500,000 Business for a Stranger in 36 Minutes
1381 segments
This is Corey. Corey runs an HVAC
business with his wife doing over $1.2
million per year in revenue. But, number
one, that $1.2 million isn't all profit.
And number two, he has $60,000 in debt
that he wants to get rid of. I'm Alex
Hormozi. I own acquisition.com, which is
a portfolio of companies that did over
$250 million last year in aggregate
revenue. We have several service-based
businesses in our portfolio, so I've
done a lot of thinking about [music] the
problems that Corey's dealing with. And
so, first we're going to deep dive in
the business, and then we're going to
break down all the tactics that he and
you can use [music] to scale. And at the
end, we're going to check in with Corey
1 year later
>> Originally, we were doing about 1.25
million in sales. Currently,
>> see if the tactics actually helped him
scale his business. So, let's meet
[music] Corey.
>> What's going on, Alex? My name's Corey.
>> What's up?
>> I own Proshine Professional Cleaning
with my wife, Nicole. We are an HVAC
cleaning and ductwork repair company.
>> What are the problems you're trying to
solve?
>> So, right now, we're allocating about
10% of our profit going towards paying
off some of our debt.
>> How much debt you got?
>> It's about 60,000.
>> Okay.
>> And then, lead generation. We're trying
to get higher quantity of leads, and
also leads that are higher value
clients.
>> [music]
>> On the bottom of that is just our like
really just help our client with our
booking process. I think that we can
streamline it a little bit better, make
it easier on them, and then also not
lose out on the possibilities of upsells
or anything like that throughout that
process.
>> Why is solving this important? What
happens if you don't fix this?
>> First and foremost, we're a people
company. So, we really go out in the
community and just do the right thing.
And I'm grateful to have guys on my team
that really share that goal. It makes
our life a lot easier. [music] That's
why it's important to us, so we can help
more people, and then also grow our
business.
>> All right. Awesome. Okay, so how do you
make money?
>> This is actually where Proshine's a
little bit unique. For our HVAC
cleaning, full-in price for us is 1575
per HVAC unit.
Each house we do has about two units.
So, with that 1575, we have a 2-year
growth-free guarantee. What that is is
when we come out, we make sure that
we're disinfecting that ductwork
properly, killing any kind of bacterial
growth. So, clients love having that
guarantee in place, so that they don't
have to worry about it in the future.
And then we have ductwork re-wrapping,
which is pretty much replacing the old
installation, and then also our dryer
vent cleaning, which is $175.
>> Do you show customers pictures of the
inside of their vents?
>> [music]
>> Yep, absolutely.
>> Yeah, I would think.
>> So, actually we have a customer profile,
so they can access any point in time.
So, if they want to sell their home,
they can use it as an advantage for
them.
>> I like that.
Where do you get your customers?
>> All right, so we have a couple of
different channels. Um, 60% come from
paid ads. 3,000 a month go from Google.
Uh, we actually just up that a couple
days ago to 5,000. And then also 650
from Facebook. Facebook is very new for
us. We just started the last 2 weeks.
Then 15% of our job flow comes from
local SEO, which is a third-party
company. And then affiliates and
referrals are a very big portion for us
because we are partnered with a lot of
HVAC companies in our area. One of them
actually sends us about 30K a month. So,
we really just want to replicate what
they have going on and then share that
with our other partners.
>> So, what's the advantage to that
affiliate sending you the 30,000 a
month?
>> We actually send them back roughly 40 to
45,000 because they have higher ticket
items. So, when they go in, they're
doing full replacements, where we're
doing some patch work and some cleaning.
Say they send us 20 uh leads, we'll send
them maybe four or five, but they make
double what we would send.
>> So, Corey has a unique affiliate
strategy, which is that he purposely
limits his own services so that he
doesn't compete with other businesses in
his quote space. And so, he refers them
the high-ticket business, but then they
refer him some percentage of their
business. But, the beauty of this model
is that he's able to do this with tons
of high-ticket providers so that he has
almost limitless lead flow of people
coming towards him basically for free.
>> So, give me whatever other numbers you
think I should know.
>> Our numbers right now, 1.25 million over
the last 12 months. Profit on that is
479,000.
Uh, our net margin is 38%. So, our
marketing spend right now is just under
7,200 as far as our marketing strategy
altogether. Our show rate actually,
funny enough, is 99% because it's the 1%
that the client just happens to not be
home where they forgot about our
appointment. And then our close rate is
82%.
>> If we double the lead flow of the
business, can you handle that?
>> Yes. So, actually we just hired on two
more employees and we just got a third
van.
>> Right off the bat in every business, I
think the first problem I try to
delineate is this is a supply
constrained business or a demand
constrained business. Meaning, if we can
double the lead flow and they can handle
it, then it's a demand constrained
business. If we double the lead flow and
they can't handle it, then it means that
we got to go build the resources and
infrastructure to be able to handle a
doubling lead flow in the future. And I
think this is such a common thing that I
see with business owners, they're trying
to fix a problem that's already a
problem that if you fix it, makes your
existing problem worse.
>> I got a a bunch of notes. I think we
might be able to help you get more
people, more impact, and more clean air.
>> I'm talking about.
>> All right, let's do it.
>> There's nothing majorly wrong. And so,
that's the good news. And obviously, you
have 38% margins are growing. The last
thing I want to do is like break
something.
>> Right.
>> And so, I think this is going to be a
game of incremental improvement.
>> Right.
>> Like no Hail Marys. This is just
consistent yardage.
>> Trust the process, right?
>> Yes. Number one, I think that there's
actually still some more room for
pricing. Number two,
>> Wait, let's talk about the debt.
>> Number three,
>> Talk about the affiliate piece.
>> Okay.
>> Four, we'll go funnel conversion rate
optimization.
Then five, we'll go ads.
>> Perfect.
>> Uh six,
reactivation
emails.
>> Mhm.
>> Corey's at stage five on the $100
million scaling road map. He's at
productize. So, he's got 10 to 19 people
working the business. She's got maybe
two or three people in the business that
are kind of like manager leaders that
are running this thing. Now, some of the
issues that he's dealing with is that
customers are having nothing else to buy
and churn. We have to figure out how we
can get more repeat business for the
business. His qualified leads are too
expensive and cap your ability to
advertise. And so, what we're doing is
we're trying to improve the throughput
on his existing advertising process so
that he can get more leads because he
can handle more leads. We're creating
more sales materials, tweaking pricing,
sales process, creating a CS playbook.
All of this stuff is the things that
happen all the time at the product tie
stage. And so if you're like, "Shoot,
that's almost exactly what he's going
through." That's because businesses
behave in patterns. And so if you're not
sure what stage of business you're at,
um this scaling your map is 100% free.
You can go and get it at
acquisition.com/roadmap
and put in your business details. And on
the thank you page, if you would like
our help actually helping you
debottleneck these things, kind of like
what I'm doing with Corey here in person
at my headquarters, on the thank you
page just schedule a call. My team would
love to have a conversation with you.
Worst case scenario, we provide value.
Best case, we'll see out here in Vegas.
So first things first, the price. So you
did a 23% price increase after the first
time we talked to you. Okay. And so that
resulted in a higher close rate and more
money.
>> Right.
>> Wonderful.
>> So Corey had actually come to one of our
workshops at acquisition.com earlier and
we had made this first initial
suggestion, which is like, "Hey, bump
your prices."
And he obviously saw a big improvement,
right? He was able to charge more and
close more. And the reason we made that
recommendation is because we looked at,
you know, businesses in that space and
we're like, "We think you're mispriced."
Some people may be like, "How could you
raise prices and close more?" Well, let
me explain. There's two scenarios where
this could be true. One is something
called a Veblen good, which in economic
terms is usually like a high-end luxury
item. So like a Rolex, sometimes if
something goes up in price, it becomes
more sought after. That's not what
happens for Corey cuz he's in the other
bucket, right? No one's like bragging at
their Rotary Club about how much they
spent on their H vac. So instead what
happens is that if you have what I would
consider a normal business providing a
normal service or product, if you raise
your prices, what sometimes happens is
that the conviction of the customer that
you can actually deliver on the promise
you're making goes up. And so on the
value equation, which I talk talk about
in this book, it actually increases the
perceived likelihood of achievement. So
by raising the price, we actually
increase the value. And this is why I
talk about charging premium prices. Page
48 in the Offers book, I talk about the
virtuous cycle of pricing. And so So
happens is if you raise your price, you
increase the emotional investment, you
increase the perceived value, you
increase the results, and you decrease
the demandingness of the customer. You
get more money to actually deliver. And
so what happens is a lot of times people
will just try and like uh they're so
afraid of charging money that they
actually sell themselves out of a sale
because it's so low price that they're
like, "Gosh, this guy seems like a run,
you know, uh super seedy duct tape
operation." Right? And so many of you,
especially newer business owners, I'd
say like sub call it three sometimes
five million in revenue, some of the
biggest levers that exist in the
business is simply charging more because
people actually believe you can deliver
the service now.
>> So whenever I hear 80% or over 80% close
rates, I usually know that there's room
in sale. Basically, what I penciled out
was a 10% price raise. This is more
asking than telling. We would have to
believe that we're not going to drop to
65%. As long as we close more than 65%,
we make more money. Thing is is that 10%
price raise for you equals roughly a 25%
increase in net profit.
>> Right.
>> So that'd be roughly a hundred plus
thousand a year. And that's at last
year's volume and profit. So that's
number one. Does that sound something
like something that you could stomach or
not?
>> Yeah, 100%.
>> So the second thing is how fast you plan
on paying off the 60K debt that you
have.
>> We are planning to pay off completely in
the next four to five months.
>> Okay, good. That's one of those things
that like I'd say this is more of an
emotional thing, but it's just this back
of mind thing. If there's a a range of
like Dave Ramsey and then like, you
know, Wall Street,
>> [laughter]
>> I tend to skew like very close to the
Ramsey side and the single argument that
I have around it is basically debt
increases risk.
>> Mhm.
>> Risk when multiplied over a long time
horizon tends to come due. And so
[music] like businesses have seasons,
they have volatility, and why did I take
the, you know, the debt out to begin
with? A lot of times it's like cuz I
wanted to grow faster. You know what I
mean? If you look at some of the most
enduring companies, a lot of like
Chick-fil-A operate debt free.
Let's do ad stuff first and then I'll
circle back to affiliates. So let's pull
up the the page that the Google ads are
going to. Right now, this is where the
ads are going, right? Now, what most
people are probably doing is they're
clicking the button on the top right if
they're desktop or if they're mobile,
they're probably clicking the button
right there. It's almost like having two
landing pages in a row. And so, you
might know this, but like typically
you'll lose about 50%. Yeah, by like
half. Just for every step you add, it's
usually about half or more that you
lose. Can you shrink that to mobile just
so I can see what it looks like on
mobile?
Okay. That looks
a little better. But, what I'd want to
do is like I want that to just be a
headline. I don't think the ProShine
etc. stuff at the Like, see how it's
kind of like messy? I think there's a
lot of stuff going on. So, I tend to
just either really shrink the logo so
it's like a very small because it's
literally the prime real estate is
everything that's above this fold. And
the first thing someone sees is the top,
which right now is like a lot of blank
space.
So, I would probably wipe that, probably
that button, so it's just the hamburger
menu and the ProShine. That'll massively
shrink the top bar. You have the home
and then the site nav. You can drop
that. We want to basically build a
specific lander for ads, which isn't the
home page because this page is serves
one function, which is conversion. We
actually don't see an offer. Keep
scrolling. Yeah. And so, this is
actually where the conversion happens.
So, we're we're losing a ton of traffic.
>> to the top bar.
>> Oh, yeah. The basic level of this is
like let's just have this offer clear
and then eliminate all the other stuff
on the [music] page, basically. So,
let's go to the ads real quick. I think
the the one takeaway that I have there
is you have more opportunity to spend.
>> Absolutely.
>> So, like I think that at the very least
we'd be like, we just want to continue
to spend month over month provided our
ROAS and our CAC stay more or less the
same. And the fact that you're already
at 13:1 up front and that's with like
what I would consider like a pretty
unoptimized page. Like, that might
double to like 26 the changes that we do
in the funnel. You might be able to go
from like 5,000 like 30,000 a month in
spend.
>> Right.
>> Which would be sweet, right?
>> So, let me ask you a question. If for
every dollar you gave me, I gave you $5
back,
what would your budget of dollars that
you'd give me be? If you answer that
correctly, the answer would be as many
dollars as you possibly could. And then
once I give you more dollars back, you
take those more dollars and give those
more dollars to me and then I give you
more more dollars back. And
fundamentally, that's how good
advertising should work. And so, what's
interesting is that there's a lot of
businesses that you're probably seeing
multiple on this show where you'll see
somebody getting 10:1, 20:1, 30:1, and
they're spending $1,000 a month, and
it's like, why are we not spending
$2,000 a month or $5,000 a month? Now,
if you're not sure, then you have a data
problem. So, you got to go make sure the
attribution's right. But, if you know
that's where the money's coming from, by
all means, spend more. And I know that
there's like some emotional, you know,
barriers cuz I've gone through them
where you're like, "Oh my god, I can't
believe I'm spending $1,000 a day." Cuz
you feel like you're getting $1,000
poorer, and you're like risking it. But,
the thing is is that if you already know
based on past metrics and the existing
campaigns that you're running that you
get this expected return, then this is
just part of leveling up in business is
that you take greater and greater risk,
and at the same time, you get greater
and greater rewards. Okay. So, let's go
Facebook ads. All right. So, the good
news is that you got ads up.
>> Yeah, right.
>> The way that I would try and look at
these is that most times when people
make ads, especially the creative
people, they'll use Canva or whatever.
And they're making it on their [music]
desktop. But, the thing is is that the
way that you need to see it, and the way
that your CMO should look at it, you
should literally text She should text
you the image of the ad cuz it's going
to be about as big as it's going to be
on someone's phone on social. Can't even
see visit our website. You can't see
that little You can't even You can
barely read it now. Right? You can't see
the number. You're not going to be able
to read that. That's the checkpoint
thing. So, you can't see that either.
All we really see is picture of you and
your wife
>> Yep.
>> and Air Duct and Dryer Vent Cleaning
Experts. That's actually the only thing
that we're seeing. I'll bet you, I don't
know, but I'll bet you that's the
highest converting.
>> Absolutely.
>> Yeah. So,
>> [laughter]
>> So, and that's actually still with
pretty rough contrast. Like, the
18-point is actually kind of hard to
read. You don't need to worry about logo
stuff for when you're doing direct
response.
>> Okay. [music]
>> Hilton Head Bluffton, you want that in
the ad copy as the headline. And then,
the actual image, if we're just sticking
with image ads for now, uh we want the
free 18-point inspection to be like,
boom. Says, "Get yours today." Just be
like, "Get yours."
>> [laughter]
>> And then, that way it's all the same
size, right? And you can probably drop
it today. Then, I would run 40
variations. White background, blue
background, on white. Like take all the
colors that you have for your brand and
I would just basically just run a lot of
variations there. And you might be
amazed by this, but the picture that you
choose there, just like it's kind of
blocking the work, which is kind of a
bummer cuz I want to see what you're
actually doing.
>> Right, right, right.
>> Also, you with pictures with customers
like smiling and super happy near their
HVAC unit. Like people understand what
it's about, but I would be running a ton
of different images. Also, do you do any
organic like posts on like Instagram or
I would take all the best performing
organics
>> Got you.
>> and literally just the last 5 seconds
[music] just tack on like, "Hey, if you
want an 18 like if this is cool and you
want an 18-point inspection, it's
absolutely free. Just click the link and
we'll come straight out to your house."
>> this site.
>> Yeah. So, just take the best performing
ones, add the 5 seconds on the back, and
then basically each one of them become
>> Yeah.
>> typically pretty good ads cuz the
algorithm already does the testing for
you. The cheapest ways of testing new
ads
um is just like post them as organic and
then see how they do. Now, let's go
funnel CRO. So, this is what the page is
going to look like. You're going to have
your little hamburger menu here. I think
you can just put the the number, 333,
whatever, up here. You want to make sure
that on mobile this is all one line. So,
there's no no other row. Do you do free
assessments or not?
>> Yeah.
>> Okay. Uh
>> We actually we saw that just changing
the verbage instead of you doing a free
assessment to like the 18-point
inspection.
>> Yeah.
>> People love that versus the other way.
>> Free 18-point inspection and then I
think we have our form right here.
Underneath they have the number at the
top for the people who want to call cuz
I'm guessing cuz you have it all over
that you do have somebody who's
answering those. And then you have your
little, you know, submit whatever thing
here.
>> Got you.
>> And then I would probably put a
locations just because I'm thinking what
are the most common questions that
someone might ask. If you already know
these other ones, then I might also
include
FAQs at the bottom. And that would be
it. That's more like that's the page and
it should be a free-standing page that's
you don't even have to have it navigable
from the site. You can just be like,
"This is where all my ads go." You might
also find though that if you change all
the buttons on your site to redirect to
this page,
>> Right.
>> you'll just convert more of the existing
traffic. Also, on the SEO side.
>> Yeah.
>> So, I think this honestly like of all
the things I'm going to go over, I think
the pricing, the ads, and us doing this
funnel change in terms of how we're
directing the traffic is probably going
to be by far the biggest improvement. I
think you probably have something in
April that have a 2x or more here.
That's going to be really big. The
funnel conversion, we've outlined that.
You're going to increase Google Ads. You
probably have a ton on the Google side.
On the Facebook side, we're going to do
uh plus plus on images.
And we want less text.
And basically offer
first.
>> Yeah.
>> Like, basically just lead with the
offer. In general, with marketing, like,
I don't want to say think the same thing
multiple times. I'll say it in different
ways, but the same content over and over
again, like,
>> Right.
>> it just looks
cheap.
>> Cheap.
>> You know, for lack of a better term,
which will affect your brand, right?
[laughter]
So, let's do the reactivation stuff, and
then let's pull up the emails. We
recommend a yearly free checkup for your
dryer vent to ensure it's working safely
and efficiently.
If you use your dryer frequently or have
furry pets, we suggest cleaning it more
often. Frequent use means more than
three loads per [music] week. If you
have pets, consider more frequent Okay.
So, what's interesting about this is
that this is like
I mean,
what you've proven is that just telling
people you [music] exist tends to get
more business, which is like first first
objective.
Um I would say the second version of
this is where it says, "Hey, you know,
Pro Shine family, two things that I
would probably consider testing. I owe
you uh a free checkup or I owe you X
amount of money." So, whatever the cost
of a checkup is, you do 175 or whatever.
Like, "I owe you $175." That'll get a
lot of opens.
>> Right.
>> It's like, "Hey, it turns out that when
you signed up, we didn't communicate a
component of our offer that we did to
other customers. And I want to make sure
that we're just trying to do right by
you." More like, "Hey, we messed up. Can
we make it up to you?" It's a different
frame than like
>> dryer vent
>> like, "We're coming back at you." You
know what I mean? So, nice thing is with
this, you can just split test it. So,
you can run it one week and see what the
open response rates are in the next
week. And the way you're doing this,
you're just doing this manually, like,
just looking at your list who was the
last time out. [music]
Okay, that's fine. Then this I mean, the
nice thing is that creates a really easy
way to do the split test. You don't have
that no cost to you in here. So, would
make sure that that is definitely
highlighted.
>> Yeah, so we recommend yearly and then I
put bold, underlined at no cost to you.
Cuz people scan these things. [music]
Some of the things that I thought of
that are like unique angles, kind of
like the hey I owe you some money or hey
we messed up dot dot dot. Like what will
make this business more valuable in the
long run? So, number one is savings. So,
if you can ask for people's bill from
your existing [music] people and be
like, "Hey, can you just send us your
bills from last 12 months?" And it shows
before and after. Cuz then you'll have a
12-month running average. It's such a
stronger pitch. Hey, this actually saves
money. The reason that I think this is
so compelling is that this is what when
paired with the larger price will make
sense. We're charging 1,500 bucks or
$1,700 per unit. So, it's 38 whatever
3,400 that you're going [clears throat]
to pay. But the average person's getting
that back in 18 months. And it's going
to increase the value of the house cuz
we're going to give you this, you know,
this little portal that I'll show you
all the the the fix-its and the mess-ups
or whatever. One is I would send those
stats out about savings.
Number two, in terms of themes of the
emails, is I would take the exceptional
ones and send those. I'd be like, "Hey,
this is Casey. Casey was at $600 a month
and now she's at 150." You're like,
"Holy cow, I could use that kind of It's
like, hey, you know, hit us up. It's
better for your allergies and it's
better for your pocketbook." Like those
are pretty the three kind of strong
angles, which then leads me to the
second kind of stat that I think is
worth collecting. So, one we have the
stat on savings, which I think will be
the most compelling. But interestingly,
I'll bet that if you had a different
angle on some of the ads, which is like,
"Are you sneezing a lot? Are your eyes
watery?" Like what are the pains of
somebody who has allergies? And I'm
somebody who has terrible breathing and
so that's why, you know, why I I I
recognize it. And if if someone [music]
says, "Did you know that allergies are
reduced by 33% by just having better
air?" And then be like, contrast that
with 90% of houses are past their period
of time where the the existing filters
work or whatever.
>> That's why we blow up in April when the
pollen season comes and all the windows
are open. That's big for us.
>> So, the nice thing is that if you have
one or two times a year that you know
it's going to kind of blow up, then you
actually get basically year-round
coverage. In the gym world, people want
to get in for summer. So for us, we have
summer and then we have New Year's as
like two kind of polar ends. But we can
get year-round sign-ups because as New
Year's approaches, it's like you're
advertising, "Hey, want to start You
want to start getting in shape for the
new year." And then once New Year
happens, it's like, "Hey, don't you want
to make sure you have your New Year's
resolution that worked?" And then it's
like, "Hey, did you miss your New Year's
resolution?" Right as we're getting into
like March, April, it's like, "Hey, if
you want to get in shape for summer, you
got to do it now." Right? And then once
summer hits, it's hot as and then
they're like, "Fuck, you know what I
mean? Like I'm in a bikini, I look like
I look terrible. Hey, if you look
terrible in a bikini, you should come in
now."
>> Right.
>> It's like, "Hey, did you And then right
at then we're going right back into New
Year." And so we only need like one or
two kind of seasonal pain points to go
pre, during, post twice, basically on
two cycles a year.
>> Yep.
>> That theme is what you would communicate
to the CMO. All of our messaging for the
next 2 months is going to be
anti-allergy. And that's going to be
through the emails, that's going to be
through the ads, it's going to be
through Google PPC. Next 2 months, it's
going to be like, "Okay, season's here."
>> Right.
>> Because thing is is also your targeting
is going to go to some of your existing
customers. And so I'm sure some people
are booking through Google search that
already are customers of yours. They
just don't know how to find you on the
internet.
>> It's Google search.
>> And so this just gives you another
opportunity to get in front of them more
times.
>> So it's really cool that here from Alex
that we could start using some
anti-allergy or some mildew kind of
things that we can implement cuz I know
that this is a big issue that many
homeowners don't think about until it's
unfortunately too late. Real quick, I'm
going to show you the exact 10-stage
roadmap from zero to 100 million plus
that less than 1% of companies finish
I've now done multiple times and so I
can say with a lot of confidence that
these are the stages as head count
increases that you need to get through
and I broke each of these down by eight
different functions of the business,
what the constraint feels like, like
what are the symptoms of it when you're
going through it, and then what steps we
actually took to graduate. We've done
this across software, physical products,
uh service businesses, brick and mortar,
all of this and it works. [music] And
it's my gift to you, it's absolutely
free and so the link's in the
description but you just go
acquisition.com/roadmap
just enter your info and it'll spit it
right back to you all free.
>> The other thing, do you have retargeting
across all platforms set up?
>> We're working on it.
>> Okay. Yeah, so that would be for me
[music] like
Probably be number seven. Cross platform
retargeting. And the other thing
is
Number eight is we want to own
all
terms. Quick pro tip for just about
anybody, if you advertise at all or even
have some level of word of mouth,
people will search for your business or
your name. And so for me it would be
like I should own Hermosi, Alex Hermosi,
you know, Alex Hermosi acquisition,
acquisition.com, all these different
permutations of things that are words or
branded terms that I have been
consistently marketing over an extended
period of time. And so we just have to
think what are people most likely to
search for if they know who we are. And
we just want to make sure that we're
first thing that people see cuz
otherwise you you leave that space open
for competitors to advertise and scoop
your customers for you. And this also
helps out businesses who don't have as
strong of SEO, so search engine
optimization, so that if your customers
are searching for you that they find
you. And that's the point. And I'm
willing to do that even if I have to pay
cuz some people are like, well they were
going to find me anyways. I don't want
to pay for that click. Dude, get bigger
problems. Like you're you're not going
to lose money on that. Cuz think about
the alternative, someone could just
outbid you on your own terms and then it
becomes a problem.
And I'll say this, if someone is
outbidding you on your own terms, the
good news is you'll always be able to
beat them on being more profitable on
your name. If we're looking up this
stuff, I think we're looking at
basically once a month here.
One time per month. And I think that
these reactivation emails, I'm going to
pull this over.
Would be one is like IOU.
Which I would have a follow-up to this
one. So there's difference between like
we might email once a month, but we
might have a like a two or three email
sequence just for like that little
segment. If that makes sense. So it's
almost like three six mini campaigns
more than six individual emails. And so
be like I made
a mistake
on your
account.
Okay? But that's like kind of like A and
then B.
We probably have our allergies angle and
then we have our savings angle.
And then we have our
environment. You never know.
>> Yeah. Another good one around the
allergies like from the polar opposite
from obviously April to like the end of
year like when it starts to get cold is
mildew smell because a lot of times when
those heating elements start to kick up
in electric heat we're smelling it
through the duct work.
>> So you've got pollen and then you've got
what you say mildew.
>> Right. These are kind of like your two
variations of your different kind of
allergy angles. I would also consider
doing
case studies
>> Okay.
>> as the follow up for
each of these. So it's like here's the
stats behind this and the follow up
email is like, "Hey, here's Casey who
had the same issue. Maybe you should
consider that." And so then this one
gets us to like
come back.
>> [laughter]
>> Right? Cuz that's our [music] six
months.
>> Yeah.
>> Like I would be unsurprised if it
doesn't do 20 to 30% revenue.
>> Yeah.
>> Like
>> Yeah. Big time.
>> Big and the nice thing with this it's
all profit.
>> Right.
It's back.
>> All right. So let's talk about
affiliates.
>> Okay.
>> All right. So walk me through
your existing affiliate process.
>> So right now we've just have a
connection with our other partners.
Typically they're either in the HVAC
space or they're pest control, even
remediation companies. We make
connections one-on-one with them. They
know what we do.
>> How do you make the connection?
>> Through networking just in general. So
we have networking events that we go to.
People that we're partnered with refer
us out to other companies that they work
with.
>> Your existing referral program is
basically just be like, "I'll send you
business, you send me business." And
that's worked out okay. But how many
would you say are actively sending you
business?
>> On a consistent basis, one.
>> Okay.
>> Just the one.
>> So I I'm going to guess that's just
worked out. But most of the times if you
want to have like a true kind of
affiliate partner program we need to
have some sort of offer for them. I see
this is basically two potential avatars
and I don't want you to focus on both. I
want you to like pick one basically.
We've got the events play which is okay,
I'm going to go to these HOAs. I'm going
to go not during the time that there's
an event and say, "Hey, when do you have
your HOA events? I did this house and
this house in this neighborhood." Cuz
that's going to be key, right? Like we
already did this house, this house. You
can call them up if you want, here are
their numbers. We'd love to be able to
just know what your schedule is
for when you have your HOA events just
so we can just show face, you know, we
like to be a part of the community, blah
blah blah blah.
Um but this is an outbound
>> Okay.
>> effort that you're basically it's you
plus car or Nicole plus car going out
and shaking hands, kissing babies. And
basically what we want to do is create a
calendar so that we end up getting to,
you know, one to two a week which I
think you could totally do.
>> The stuff that we're getting from that
event, I mean the last event we did we
booked 55 inspections. Both RC M&O and
Nicole, I mean they rocked that stuff.
>> So I see this as a very good way of
doing it, but I think we go outbound.
Give us your calendar for what your
events are and then it's just like once
you have their calendar, you're in. And
then after every time you're there
you're like, "Hey, when's the next one?"
And that way you just always go book an
event from an event once you're in. Now,
on the partner side what I want to talk
about is the offer. We want to have a
really compelling offer for them.
Referrals everyone promises, no one
delivers. And so it's like you need to
have something [clears throat] that
they're going to like, you know,
get into bed with you on. Whatever
the highest gross margin thing that you
can do that's like kind of lower ticket.
So that $175 thing,
I think that you say, "Hey,
you can charge $175, you can keep the
whole thing and we'll do [music] the
work."
But then when you go out, you've got the
client and then you can sell the rest of
your the rest of your work.
>> Right.
>> So this is the $100 million book. This
is page 223. We're talking about
affiliates. And so one of the key parts
about making an affiliate work is
figuring out the offer that's going to
work best for them to sell on your
behalf. And so I have a couple different
versions of of setting this up. I
outline them on pages 237 to 239. So I
basically give you three different
versions that you can use to get
affiliates to promote your stuff. Now,
what I'm proposing for him, he offer
number two, which is they have the core
thing that they're selling, but then
they upsell for 175 bucks his lead
magnet. So, they're going to sell
something that he's going to give away
for free to them to give to their
customers. And then once that customer
comes in with that lead magnet cuz they
bought the $175 thing, you then upsell
the core offer that applies to you. The
reason they do it, the other business,
is because they make all this money on
the 175 bucks that they don't have to do
anything for. You like it because it
might cost you only $25 to deliver that
$175 thing. So, your cost of acquiring
the customer is your conversion rate
from lead magnet upsells to your core
offer times the cost of delivering it.
So, if let's say one out of three people
takes the upsell, well, if your cost of
delivering that upsell is $25, then it
costs you $75 per customer, which is
probably exceptional math for his
business.
>> And it's a very good point because our
technicians are trained to even if
they're doing just a dryer, to push an
inspection to see what's going on while
they're there.
Okay.
>> And so, this we'd give this to
affiliates.
So, you know, you have your your one
guy, but it's like, "Hey, let me talk to
10 other one." I still saw that you guys
don't do duct cleaning, we do. It's one
thing to say, "Hey, we're going to refer
you business," which we will,
>> Right.
>> but you also only have so much business
to refer to. And the thing is this
long-term, it's a less scalable option
cuz what ends up having to happen is if
you're like, "Well, I want 20 referral
partners," it's unlikely that you're
going to have sufficient referral volume
to send them all enough business.
>> Yeah, so the good thing about what we
have right now set up, it's another set
of eyes as as well for us to go through
and and diagnose [music] their system.
So, it gives them more visible time on
their their units in their clients'
houses,
>> Yeah.
>> uh which allows that allows us to say,
"Hey, listen, like this is [music] needs
to be replaced or this is wrong."
>> We'll upsell your stuff if we don't do
it.
>> Well, but right, well, we send them
right back to whoever sent us there.
>> Yeah.
>> So, you know, depending on what partner
we're going in with, solidify some of
their sales as well. Uh which is why
[music] that affiliate with our biggest
one is working so well.
>> So, I think that this is the offer I
would approach them with and just say,
"Listen, you can sell it. I'll send one
of my guys out. I'll eat it at 100% of
cost. You take all the money, and you
just know what your metrics are. Like
you're still going to close 87% [music]
and it's going to be 3-4K, so who
cares?" You would pay 175 cuz the the
hard cost of sending the guy out is less
than that. So, what's the cost of
sending the guy out?
>> Uh about 100.
>> Okay. So, your actual cost is about 100,
but you're probably going to close what
percentage do you think you'll close
into new business?
>> Um probably 75% of that.
>> Cool. Let's be conservative and say
half. If you had to pay $200 in terms of
CAC, who cares? Right. And so, that's
the that would be the offer that I lead
with because that way you don't feel
like you owe [music] them. I mean,
obviously you're going to want to try
and refer business if you can, but this
at least gives them real money, no extra
work. Like it's a compelling offer.
>> They just send it to us and we get it
done.
>> Yeah. [music] I don't think you're going
to be able to do both of these.
>> I agree.
>> So, which one do you feel you would be
like more equipped to do sooner?
>> Equipped to do sooner, I think
outbound's probably easier cuz we
[music] can obviously have our CMO to
start making those reach out calls to
see what's going on. Ultimately, I think
that this is going to be very
interesting for us. We want the
activation. I think that
at a certain point we're just having
people say, "Hey, this [music] the
price?" Charge it.
So.
>> Okay. So, if we're looking at a
timeline, it's like probably for the
rest of this year you're just going to
it's going [music] to take you to spin
this up.
And so, this is probably a 2026 thing.
Realistically. Because for each of these
things, you basically need someone who's
full-time in charge of the time.
As as ugly as that sounds. But the thing
is it's going to be worth it because
you're going to generate much business.
If you get one more partner like your
current one, it's already paid for
itself. And I think that if one time one
person's full-time, that's the only
thing they're doing, they'll definitely
do more than that. And then you'll run
into supply constraints cuz you won't
have enough guys, which we can deal
with.
>> For our affiliate, I think that this is
going to be a great program for us. And
we always look at how we can get back to
everyone around us. So, this is going to
fit our model and then just really
explode the whole process. Let's look at
our our overall
our overall improvements. We'll
prioritize them. Does that sound good?
>> Sounds good.
>> Okay.
Number one is we're going to do
price raise
of 10%. So, around 1650 per unit. And as
long as close rate stays uh above 65%,
we're making money. Okay. Two is you're
going to continue to pay off the debt.
So, we're going to we're just going to
keep
debt paid. Number three, change funnel.
So, uh optimize landing page
and redirect buttons. [music]
So, all the buttons on the site should
now go to this new page that's already
optimized.
>> Mhm.
>> So, number four is fix ads,
which is
variety
plus organic
best
>> [music]
>> performers
>> Mhm.
>> with a plus five second
>> Yep.
>> uh CTA.
And then, we're going to increase ad
spend.
>> [music]
>> Now that we fix these two things, so
it's like let's go make a better funnel.
Let's go fix the ads.
>> Mhm.
>> Then we will increase the ad spend, and
we're just going to keep doing this kind
of
infinitely.
>> Right.
>> It should be a There you go.
Forever.
>> And for the increase ad spend, what are
you thinking like how much do I
do you want me to designate percentage
base on on that or
>> The reason that I do it in this order is
because if we fix the landing page and
we just improve the ads you have, you
might already double or triple your lead
flow.
>> Right.
>> And so, you might not even have to spend
more because it might be like, "Shoot, I
don't have enough guys." Which is a
problem I'd love to create for you. Then
we go retargeting cross platform plus
own
Google search terms.
The last main one that we're going to do
is just going to be outbound to HOAs.
Like, you can do one through four in the
next like
two weeks.
>> Right. Right. Right.
>> Right. This is kind of like the first
thing that happens. This then is kind of
happening anyway, so there's not really
any work that has to happen. These two
happen together.
These two will happen together.
And then this would be the last thing
that I would do.
>> Got you.
>> Because all of these might even result
in me being like, "Shoot, I don't even
need to do these events yet. Like I'm
we're already [clears throat] crushing
it on this part." So, I think that this
could
reasonably increase profit by 25%.
in profit.
Um that will also, once you have to not
pay off the debt, that'll increase your
profit by like
>> [music]
>> 5%.
>> [laughter]
>> Right.
>> But at least 100% in headache.
>> Yeah.
>> Um this might be a a 2x that's sitting
right here for optimizing the pages. And
it might be even more because you have
your SEO that's going to feed into that,
too.
Um fixing the ads and organic, like this
could definitely be a 2 to 3x.
>> [music]
>> I know that sounds wild, but like I
think you're getting by with the ads
that you have because other people who
are in your industry don't know how to
advertise
more than because the advertising is
good. [laughter]
>> Right.
>> Um the the ad spend is just going to be,
you know, one-to-one ratio. Basically,
you're you're scaling. Right? If you can
If you can keep ROAS the same and we
double it, then everything doubles down
the funnel, right? This is probably
going to be somewhere in the
neighborhood of like a 10 to 20 I'll
just call it a 10. Conservatively, I'll
say it's about a 10. 10% lift, maybe 20%
that you might get from the the
retargeting side. Um and then outbound
is kind of like a uncapped. Uh because
you could figuratively just be like,
"I'm going to go get 100 agent leads."
And then like you're completely plugged
in. You do that and you're at 10, 20
leads a year.
>> Yeah.
>> Oh, you know what? I forgot one. So,
um six email
reactivation.
>> Yeah. Yeah. Yeah.
>> There we go. And I think that can give
us another
probably 20 to 30%
lift.
>> Yeah.
>> Money.
>> And that's And that just keeps growing.
>> Well, the nice thing with things like
that is that if they do compound as the
business grows.
>> Right.
>> And so you don't like
once that's installed, it just continues
to print. Do you think this will help
you grow?
>> Absolutely.
>> Sweet, man. Awesome. Feel good about
this?
>> I do.
>> All right. Rock and roll, man.
Drum roll, please. It's been almost a
year since we filmed this episode with
Corey. My team jumps on a call to check
in on his progress, and I'm going to
watch it live.
>> Hey Alex. Uh so yeah, so when we were
there originally for the recording, we
were doing about 1.25 million in sales
for the trailing 12 months. Uh
currently, we are on our on our goal
here for 2.3 to 2.5 a year later.
The biggest impact that really that we
obviously went over with a lot of like
my marketing, which we knew was an issue
when we first got there. So, [music]
went with a new third party that's been
there, done that uh with many other
companies before. Um so, they're been
amazing to work with. And again, our our
lead flow uh after kind of making some
of those conversions from the landing
page marketing, upping ad spend, uh we
were sitting about 120 leads a month,
and now we're about closer to 200. Uh
which is really great, and they're
higher quality. And then, I'm excited
and hopefully in the next 12 months,
we'll be looking at another location,
which is super exciting. Not only for
myself, but for my team. Uh I got some
some good individuals here that are
looking for some new opportunities, and
I'm happy to be able to facilitate that.
I just want to say I thank you, and I
appreciate all everything you do. Um and
I love your mission, which again is like
very similar to the way I go to all my
clients. Um you do it for the right
reasons,
>> [music]
>> and that's something I can respect.
>> Well, there you have it. That's Corey.
Um you know, crushed it, almost doubled
[music]
uh within a year just walking through
the stuff that we went through. And all
the credit really goes to him. I mean,
at the end of the day, you can watch 100
of these videos, but if you do nothing
with it, nothing's going to happen. So,
real businesses, real tactics, real
and uh
hope to see you on the next one.
Ask follow-up questions or revisit key timestamps.
This video features Alex Hormozi consulting with Corey, the owner of Proshine, an HVAC cleaning and ductwork repair business. Despite generating over $1.2 million annually, Corey faces challenges with debt and lead generation. Alex analyzes Corey's business model, providing actionable strategies regarding pricing, marketing funnel optimization, ad spend, and affiliate partnerships. One year later, Corey reports that he nearly doubled his annual revenue, reaching $2.3 to $2.5 million, by implementing these strategies.
Videos recently processed by our community