The Shortcut to High Margin Income. Hormozi Hotline

Let's rock. Justin? You up? Justin? Justin? No, Justin. Okay. Justin, I'll get you next time. Otherwise, when you guys see the year of now, Jesus Christ. All right, Justin. This is the last time I'm going to get on here. And if I don't hear him, and only him, I'm using the sandwich because this thing smells amazing. All right, Justin, are you on?

I'm here. All right. We made it guys. We did it. Justin is on. All right, Justin. Are you doing $600 or $600 K-mo? $600. You can't notice the income of the 120 K a year. Okay. So you're doing 120 K and what do you do? Automation for ERPs? Yeah. Okay. What a processing. What is that? Order processing. I emailed it. Yeah. Okay. So before this, you were doing what? Automate anything for anyone? Automate anything for anyone. Yeah. Okay. So how are customers coming to you before this?

Two years ago, I did some videos on how to automate things. Okay. That's been it. Those videos have driven everything. Do you still make videos? I'm about to start again. Okay. What a new type of video because those videos got me a lead that were freelancers who wanted to automate a lot of people. They weren't that many business owners. Hmm. Would you ever teach people how to automate stuff?

I've done lots of videos. I have lots of people in my LinkedIn who want to learn how to automate. I'm trying not to do that. And you don't want to start with them. But I don't know how much money they have to be honest. A lot of people just started. It's not about how much all of them have. It's about how much, you know, 5% of them have. So what's the, what's the goal here? Do you want to do?

Do you want to make money? Like what's the goal? What do you want to do? The goal is like 500K net profit. You just want to make money. Oh yeah. You don't care about building a sellable thing. You just care about making money. Yes. Okay. I think that if you have a trim, like right now, you have a very valuable skill. I think that you teaching people this valuable skill might be something that will for sure be able to make you 500K net profit.

If that's your goal, that is I think for sure the easiest path. Easiest and fastest. Okay. Now if you're like, I want to get the 20 million year different. But if you're like, I just want to get the 500,000 year, super doable. Okay. Yes. I think you just take all these people who are reaching out to you and the videos that you clearly do really well. Do more of that and then probably sell some sort of like automation certification, something like in the neighborhood of like, you know, $36,000. So like you have to sell two people a week to make 500K.

Okay. Right. Okay. That sounds chill. Yeah. Okay. Just do it on school. Yeah. Exactly. Yeah. I think the number one communal school right now is an AI automation thing. Like for sure, people buy that. Just do it. Just sell it as an annual membership. They get five, you know, five, five or six thousand dollars a year. If you don't feel confident yet, start it at three, you can go up to five or six. Have it bill annually. Yep. And they get, you know, access to 20 different types of automations that are most common for businesses.

And the nice thing is that you'll get both business owners and freelancers who all want to do, either they want to do it for themselves or want to do it for other people, but either way works. Yeah. Okay. And if you want to be more efficient with it, I would drive it to a sales call funnel rather than direct to a purchase page. And so I would just like sell them and then basically show them the about page, have them buy on the call with you, and then they'll be in. Yeah.

Love this for us. Was that as good for you as it was for me? I mean, I have to do that a long time, but get attention and permission. Everybody wants this one thing from you that you have this very, very valuable skill. You have an existing media asset that continues to deliver these type of leads. Let's just go make a high margin product that you want to make 500,000 years. Awesome. Great.

It's all 100 people at 5K. Yeah. It'll work. Awesome. Amazing. Awesome. All right. This is great. All right. We'll talk soon. Welcome to Rosie Holley. And thanks for being a sport about the about the audio. You're great. All right. I know you're good. No, you're good observation. All right. Thanks. I appreciate you.

All right. So let's rock and roll. I'm going to have the sandwich and I will stay on as long as it takes me to the sandwich. If you guys can pause on any of these questions, I will try and answer some of them. So I'll give you some secrets of my sandwich, my sandwich habits. I eat a lot of sandwiches. So I eat sandwiches for lunch pretty much every day. I alternate where I get them from.

And so yeah, that's that's how I do that. So this is each one of these slices is typically one ounce of meat. And so if you get three slices, you really have three ounces per. And so this is six ounces because it's six slices. And so I pre I pre-tair all of my extra meat because anybody who's had a lot of sandwiches knows that if you try and load the sandwich up, it becomes this open thing and the ratios get all off. And so what I do is I tear I pre-tair these to like my bite size. And so then I take my sandwich at the appropriate ratios. Now we're going to need the most added meat. It's going to be the front and the back. And so I will take my my front guy get a dip.

So I'm not being a not being a pig here. Just get a little dip on the front. So I get a little sauce because I have no sauce on the sandwich. So I don't I don't trust somebody else to just put tablespoons in the tablespoon as mayo on. And then I basically front load it. Hard to beat. Hard to beat. All right. Maybe we'll go question bite by question. Maybe we'll go three bites bite by question. Oh, I'm so hungry. Okay. Just pause it somewhere. Okay. Home health agency pre revenue.

Home health agency. I'm opening a month. Okay. What are some advice in this industry when we rely on insurance repayment? Yeah. Or do we have to rely on one about? Well, do your your pre revenue. You don't even make money. So like you can you can be cash or you can be insurance. I I typically don't like someone else controlling my pricing. The advantage of being in network is that they should be able to send you lots of customers. That's like the main the main benefit of being like kind of in network. I need to know more about home health.

In terms of what that actually is. So I'm actually kind of confused. There's a lot of like home health services. Alex or your strategy are used in new service businesses. But as a doctor, you're all just just starting out. And they're already famous. You're all just in my city. How can I build my practice? Use your mouth. Dude, it's going to be a marketing man.

You've got to advertise. So you have to you have to make content around your stuff. And one of the advantage that you will have compared to the more established guys is that you should should be able to run higher margins because you're not doing you don't have nearly the overhead that they'll have. So you're going to beat them on being able to be higher margin per service.

And that their people or patients are going to have higher access to you. All right, those are going to be the primary things. Something worth considering, by the way. I think concierge doctors tend to do very well. I don't know how many like if you're going to like surgeries or what. But I think you selling people because like you're just getting into it.

And you might as well start we're going to end. Most of the physicians you'd practice for 20, 25 years realize that a concierge model that doesn't rely on insurance is a far more profitable and a way better way to live. And so they just convert from having like, you know, 25,000 customers to just getting 500 customers who pay them like a thousand a year. And they make 500,000 year super chill. They have their cell phone number and just like makes life really easy.

And they just become general practitioners for those, you know, 500 or so customers. So something worth considering there in terms of strategies. But by and large, you're going to have to advertise via content today. That may change. But right now it's going to be content because you're not going to be able to spend the other guys on the ad side.

And you should be able to run decent margins. And maybe having a couple of relationships with maybe like some hospitals or other practices that might get urology type stuff. Maybe just some general practitioners that they'll refer you business because they'll fill that for you. So with that question, we will now have a couple bites. So if you guys really want to lunch with me, then cheers. We can have a bite together. Yeah, I don't know what you guys but I'm starving. You get to quote, see how I'm quote off camera. And so you're like, I wonder how he's like, normally it's like, this is it. This is how I am. All right. I said three bites.

Okay. Trying to stop between being a loan broker or any 1% for recruiter brokers and 0.5% of loan them and all the ones. I mean, for sure, I'd go recruiting brokers. So you're telling me I can get half as much money on unlimited people versus 1% for myself. Each one of those become a consistent node of revenue that continues to pay you over time.

So this is a leverage question. You literally just get paid on every single person. Basically, as soon as you have two producers that do well, you would make what you were making before. Like to me, that's a numerator. That's way to scale wedding photography business. So everyone, you have basically four fundamental ways you're going to advertise, core four. You've got outreach. You've got, so outreach to get customers, remember one, you've got paid ads. Number two, number three, you got content. And number four, you can do outreach to affiliates. So if I own a wedding photography business, then I'm going to be curious as to like, what percentage of people are running wedding photography businesses that are doing this off of like how many people are coming off

vads, how many people are coming off referrals. I would bet that for a wedding photography business, like it's a one-time purchase that you make, you probably ask other people who are local to the area, who they used. So I would be more likely to probably recruit wedding planners. So I would probably go outbound wedding planner offer to do photography for whatever price they can sell for and tell them they can keep 100% of it for like one to two customers so that they have an incentive to push me. And they get to keep 100% of the money. And then I prove to them that I'm good. And then we figure out some sort of deal. And I would just repeat that over and over again.

And so each of those wedding planners and helpers would then become my nodes of distribution. That would then feed me customers. That is how I would probably do. All right. I'm owed another bite. Little dippy-dippy, little dippy-dippy, a rotund question. So wisdom path. As an autistic, how to translate feedback into defined action that leads to improvement at business? Honestly, man, just read the books. Like I feel like I write as an autistic.

Seriously, I just like I just break everything down into behaviors. But so I think that's the whole point. And so I also just wouldn't let like any labels limit you. Like some of the most successful people in the world are autistic. So like I just wouldn't like let that be a handicap. A lot of superstitious entrepreneurs are quote ADD. It's just like I would say it's more of a trait rather than a handicap to something like worth at least how I see it. Global hangout and eating.

What lead man, which is for a craft subscription box business? Good question. What lead man if a craft subscription box business? Hmm. Will it probably be? I feel like that's more of an e-commerce play. I don't even know if I'd have a lead magnet. I would think that it'd be more like I'm going to make content using the stuff in my boxes and then solicit people to go buy the next box. And then I'd probably go like first box or first three boxes or like half off or something. And then after that, after they've had three boxes, let the price bump. That's what I would do. Okay. All right. Mic up. I have a $150,000 market budget a month. Okay. Then for some budget is what works. 20% iteration. Cool. Love that. Okay. My director said a hundred

new creators a week. Love it. So how do you run that many if they don't exit the learning phase? They should. I mean, $150,000. You're doing $3,000 a day. I mean, as soon as you do start to have winners, like once you get a certain amount of spend, they should get out of learning. Absolutely worst case scenario. Cut the creatives down to 25 or 50 and then run it that way, but it doesn't make sense to me that it wouldn't exit learning. I have a client acquisition and retention agency for residential cleaning. My price point is $1,500 a month. Recently, sold the whole system for 5K through school. Sales wasn't smooth. I don't know how five product were fit. I mean, if you've only known one, like you probably don't know anything, probably

for like learn how to sell. You said it's a like you see for acquisition, retention agency, which sounds like marketing and some sort of information that you're selling. And you sold the whole system, but there's no recurring list. You're doing 5K annual, which makes not a lot of sense given it was a service for residential cleaning. So with a business like yours, what I'd rather do is have like a big headlong town model. So it's like maybe it's like $5,000 up front and then it's like $1,500 a month. 5K front, $1,500 a month after that. And then in terms of the sale being smooth, I don't think it's product market fit, dude. Like residential cleaners want customers and want to keep customers. You don't need to test product market, but you just don't, you got to learn

how to sell. That's all that is. And it's also like, what are you judging this on? Like one conversation or like a hundred. Like I would just like erase that from your mind. Okay. The maker's layer, a Alex, I'm building a branded medical product with an app. Okay. How do I know if the product truly works when to double down versus pivot? I mean, shouldn't you try the medical product out? Have people use it? What you should be following is Y Combinator has just really amazing stuff for if you're getting in the product direction or app direction. Excuse me.

And I would really strongly be considered like, I don't want to sway you because I want everyone to start doing things on their own, but like, I won't even get into that. I'll just say this. Try and find a hundred people who love the product and keep making into those hundred people are obsessed. Don't worry about anything else. All right. I'm out of bite. It's bite time.

Peanut butter bite time. You know how it is, Luke. So we can all think my Gen Z, Gen Z, Luke the Duke for being like, hey, life shouldn't be cool. You should try it. And so here we are. Also, the first time we did one of these was on Sean, Sean Perry's podcast and he was like, we're we're calling our hermosey hotline. And so we call people up and people send really like it. And so that is why we're doing this. I'm so hungry. Okay. I'm a video game coach making four or five thousand a month, 57,000 subs on YouTube. I charge $30 a month and get 50, 60 new students with group coaching. But I turn the same number. Okay. Yeah. Realistically, you'll likely want to set up like, here's the thing. Educational loan is not a recurring product. Community is a recurring

product. Services are recurring products. And so we want to make sure that we're matching how we're billing to how we deliver value. And so it's far more likely that you deliver value upfront right to people. And so I would suggest probably raising the price or doing some sort of annual thing so that you can appropriately value the information or the education and then have a much smaller back end for the access to the community. And maybe other services or calls or whatever else that you do. I think it's one of the biggest mistakes that people make in the education slash services world is that they think that because someone would say yes today when they don't know how to do something that three months from now and they now know how to do it that they

still want to pay that. So we have to break apart our product offering into what are things that are consumable? And what are things that are one time? And so the one time things that we have significantly more value. And then you have the consumable elements that are typically less value but they recur month over month and month. And so for example, I am a reoccurring customer of the sandwich shop because it is consumable. I eat it and I still need another one tomorrow. Whereas if I learn how to make sandwiches for myself, then the skill making the sandwich will no longer be required. But then I'll need a subscription to bread and meat and lettuce and whatever. And so you want to break apart your product into like community is something that people consume on a regular

basis. Calls might be something that they consume. Those in and of themselves might not be inherently valuable, right? I mean, depending on how good you are. But education system can be valuable, right? And so all these kind of depend. But this is something that's valuable one time today when I don't know how to do something until I do know how to do it. Once I know how to do it, this is the worth of nothing. And so what happens is people say, okay, well, this thing's worth five. So I'm going to I'm going to bill, you know, $200 a month for a year. It doesn't work that way. Bill, what they want, what they need up front. And then when they have different needs, which might be lower, you then bill appropriately to that. Okay, one, Alex, tell me something. See, you got to ask

questions. And questions is much nicer. It's much more polite. I wouldn't come up to you in the street and just start shouting at you. All right, a minute. I'm going to have another bite for a long group. All right, 90 strong. I'm a brand ghostwriter for executives on LinkedIn. Despite posting daily, my reach is stuck at 200 views per post. How can I break through this plateau? So your brand ghostwriter for executives on LinkedIn, it is a little bit ironic that this is what you specialize in.

I just want to say that we'll call it out. Okay, I'm guessing you're probably just doing a lot of GPT stuff. And if you are, I probably sound like everyone else's GPT stuff that's on LinkedIn, you want to tell narratives and stories. Like, what are the things that are AI cannot do? AI cannot live in reality. And so, like, the reason I am using real businesses, and I talk about my own stories, those are things that no one else can copy. All right, if I say here's the six steps to XYZ, a hundred people will say these are the six steps XYZ. But the examples that I use are things that no one else can copy, right? The proof is something that no one else can copy. And so, if you're a brand ghostwriter for executives on LinkedIn, I'm assuming that you're trying to get

more customers for yourself. And so you're going to want to make the type of content that executives on LinkedIn might consume. This is where stories and examples are survival. Now, my guess here is that you don't have enough customers to give stories from. So this is why I suggest to people to take on people for free or at massive discounts, so that you can build up your track record and have stories to tell. And I think that will probably make your content more valuable or more interesting.

All right, starting in Beauty Brand, I saw in North America that you suggest I focus on BTC through Microsoft affiliate or focusing on B2B. But unless you have experience with B2B, I would probably start BTC. All right. Starting my marketing business is your experience. Using your books to learn. Thank you. You're welcome. How can I get more experience to sell my services to big companies? Everyone, start for free. And you also have to earn your way into bigger customers.

And so this is why it's normal for people to consistently go on market because they realize that the work it takes to do to serve bigger clients is about the same. But the thing is, is that to get the trust to bigger clients, it takes more experience and more know-how. So saying like, I have zero experience, you know, I'm going to read your books and I'm going to start taking Amazon down as a client is super unlikely. And so you're going to want to start with small businesses and then work your way up. And if you don't have any experience, this is why I advocate for starting for free. Like, you want to get proof before you get anything else. It will take you so much longer to get your first 10 paying customers if you try and get your first 10 customers to be paying.

You want 10 free customers, leverage the testimonials and learnings and examples from this 10 because the people who then buy from you don't know that those people are for free. Then you could get this next 10 using the first 10. This is leverage. It's a certain automation business for finance departments of companies of 20 to 200 people. We'll kind of link to the content should I make. Just talk about what you know. So I mean, if you're making these kind of automations for finance departments, like talk about one at a time, the automations that you do and what happens as a result. Like, there's probably 150 repeated tasks that finance departments do.

So I would probably like, first off, make myself a list of every single micro task that somebody to finance department would do. And then one by one, that would probably be my content schedule. And I would say, I'm going to make 150 pieces of content. Each one is going to explain how to automate each one of these specific portions. People who will read that and watch that will be the types of people who will buy your stuff. Don't be afraid of giving me the secrets. Like, no one in finance is going to learn your tech stuff. They just want to know that it works. As much as you can show like a mini like a five second or 10 second thing of like a process running in the background or how it's happening automatically that's showing the result, I think that will be

super valuable. Okay, I think this made me my last one and then I'm actually going to eat lunch because I'm very angry. Gas here, 34,000 a month, around $3,500 an ad spend, 20% net, dental products, number three on Amazon. When scaling spend, it destroys margins with little gain, no more in competitors, 250,000 a month, any advice. I'm guessing you're running your ad spend on Amazon.

That's my guess because that sounds very Amazon-y, which is like, they pretty much know exactly how much you make and then they just charge you the amount that your profit would be so you just pay them more. So, I mean, to scale, you're going to probably, I mean, you want to max out your existing channel, but if you have no other way of making your product more valuable, then I'd probably start looking at new channels. Like, Amazon is just a channel. You know what I mean? There's really nothing, it's just a channel. Can you get micro influencers to do it? Can you get other dents to do it? Can you do B2B on wholesale? Like, there's so many different angles that you could take to advertise a product. They're spending $250,000 a month. I don't know how. So I would try and

figure out how they're spending $250,000 a month. Do they have better reviews than you? And that's what allows their page to convert better. Do they have a back end that when customers buy the first thing that buy other things? Like, I just don't know. And maybe $250,000 is probably making 250 a month.

And they might just be that they have a better product being real. And so, Amazon is very, like, winner's take all market for the best products. And so, like, I don't know what the number 10 business book does, but like the number one business book makes a hell of a lot of money. And so, if the number one time business, like imagine, let me give you a different example. So, like, let's say that number 10 business book wrote this question was like, hey, I'm doing $5,000 a month for my book. The number one person is doing $250,000 a month. How do I get it bigger?

It's like, realistically, it's like, you just got to have a better book. Like, that's the real. You got to have a better book. Now, of course, you can market in more ways. But if you're like, how do I get bigger on Amazon? It's going to be down the product. I mean, they built their whole site to maximize quality of product. Relative to price, of course. Okay. How many hours would you go?

How do we do? Three hours. Three hours. Holy cow. Time flies when you have fun. You guys rock. If you guys like this, I'm going to keep the stream up for 30 more seconds. If you guys like this, please let me know if you like this format. If you do, I'll keep doing it. If you don't, I like it. So, I'll probably keep doing it. Especially if you're a business owner, I made this stuff for you guys. I love talking business. I hate making YouTube videos.

And so, I'll probably do more of this because this is just way more fun. And what do you guys think about having a regular show? What do you think? Like a once a week or like a twice a week kind of live stream? Kind of like I started today. Like maybe 30-ish minutes on like a specific type of, you know, training or something like that around anything that's, you know, technical and then transitioned into kind of Q&As with y'all. Okay. Rock and roll. You guys rock.

So, appreciate you guys. I hope you guys all have amazing sandwiches for lunch, no matter where you are, the best sandwiches. I wish that I wish everyone amazing sandwiches. With that, rock and roll. Appreciate you. And I'll see you guys next time.

The Shortcut to High Margin Income. Hormozi Hotline | Ep 926

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