Helping A Failing Business Owner Fix His Business | Ep 870
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- You're about to watch a conversation between me and Alexi Omar, who's a legal attorney for musicians. The problem is that he's losing money, and lots of it. And he only has about six months of cash left before his dream is going to go under. My name's Alex Ramosi, on acquisition.com. It's a portfolio of companies that last year did over $250 million in aggregate revenue, and we're gonna take all of those findings and help him save his business.

Enjoy. Let's do a quick overview. So walk me through the businesses that currently stands right now. What's revenue? Our revenue for the last 12 months has been $300,000. Profit? Negative. So we're losing money. Okay. How much? We lost $100,000. Okay. Minus $100,000. Yes. You're like, I could have done nothing and I would have just had zero at the end of the year instead of working all year and then being worse off. Heard. All right. What are the business units? Right now we have services. Okay. Okay.

We have education. Okay. And who do you sell to? I sell to artists and entrepreneurs in the Latin music industry. Musicians who are Latin American or speak Spanish.

Yeah. Okay. And you sell service, you sell education. What was the last one? Software. What's the revenue breakdown between, did any of these make money? Yeah, the services. So this made money, was profitable. Yeah, that was profitable. Okay. What was the top line and bottom line here? So we made $131,000. Okay. And we made about $10K in the last 12 months. In profit. Yeah, in profit. Because you just didn't lose money on this one, basically. Okay.

Okay. And then education? $131,000 as well. Oh, how coincidental. All right. Profit? But we lost there like...

Most of the money we lost between the two. Okay. So it's between the two because they're under one company. Got it. And so this is 40K. I'm just going to put this as for the software. And then the money that you lost here was how much in total? I guess 110,000. Okay. Put a little negative smiley face there. Maybe a little tears. There we go. Very sad. Okay. More tears. Yeah. More tears.

All right. So how are you getting customers right now? Before we talk about how we're going to fix this. How are you getting customers? So we create content on YouTube. We have about 90,000 subscribers. Is that where most like everybody's coming from? Yeah. Okay. So we got YouTube. All right. What else we got? Then they usually go to our Instagram page. From YouTube? Yeah. Okay. Is that the, that's like the call to action in the videos? No. The call to action is to go to our website. Okay.

But a lot of people go to Instagram to just ask questions like, hey, I have this problem. Can you help me? Interesting. Okay. Got it. So where do the sales come from? The sales comes through DMs. So usually they go to Instagram and they ask a question. So the place that you don't intend people to go is where you make your money. Yeah. Instagram. And you don't tell people to go there. They just find it. No. Yeah. They just find us. Okay. Okay.

All right, we'll put a little star next to that. If all the money is coming in from Instagram, how many DMs do you get? So don't have that number. We know that from the website we generate about 7,000 visitors. Okay. And for example, in April, we made 150 leads this far. So 7,000 clicks, got it. All right. And then that goes into 150.

Okay, got it. So you're converting 2% into opt-ins? Yeah, they're for free course. Okay, so they just opt-in for free course. Yeah. Got it. Okay, and then from there?

And then from there, usually we'll try to sell them the course, our main course. How do you try and sell them? Do you like reach out to them? Do you, what do you do? With every video, we usually tell them, hey, and if you want to learn more about this, make sure to, to enroll in our community. The next step for that, they'll go through the course and receive some nurturing emails. And then from the emails is how they buy and what are they buying from the emails?

So right now we're selling about nine. Nine out of the 150? Our basic offer is $500 one time.

So they have access to all of our courses now and forever. Okay. And then we have an upsell of another 500. Is that on a funnel or something? Yeah, in the same cart. Okay. When they buy the 500, we'll upsell them to another 500 for monthly Q&A. Per month? No, just lifetime as well. Forever. Nice. Okay. Okay.

Oh, gosh. Okay. So there's so many. I mean, there's so many things. Before we tear this apart, the good news is I actually think that you'll be able to make significantly more money pretty quickly. So this is your education side? Yeah. All right. What's the services side? So on the same Instagram page, if they want a consultation instead of learning because they say, I'm not interested in learning. Sure. I just want you to do it. Yeah. I want you to do it.

we'll then send them to our Calendly link to schedule a consultation and that's $250 for an hour. - So you go DM to calendar, okay, and then you charge before you have the call? - Yeah. - Okay. - 250. - Dude, the good news is,

There's lots of room for improvement. Okay. That's great. So you have your calendar and then you charge $250 per hour and they pay on the calendar to have access? Yes. Man. All right. And so that means that you sold somewhere in the neighborhood of $630, something like whatever the math is, $131 times four, that's $420. So $524. So $524 hours is what you were able to sell in services last year? You could say that. To get your $131,000? Yeah.

Okay. Between the consultations, because usually when they go through the consultation, say for example, in the last three months we've averaged about nine to ten calls. So then from there we'll either tell them, do you need a deliverable service? So for example, registering your trademark or business formation. Those are three out of the ten, you can say. And then another three are ongoing legal services. Okay. And what other business do you have?

Let's talk about that. So the other business is the software. Because you're like, you know, I'm not losing money. So I should I am losing money. Excuse me. So I'm going to I'm going to spread my attention even more. Yeah. OK, so there's a story behind that. I know. It's a VC story. So if you want a horror story, we'll get we'll get we'll get into it. I'm sure. All right. So there's a software company. OK, so let's walk through that. So the software is.

Instagram? Where's it coming from? Yeah, it's the same thing. Usually they'll say, I don't have $250. I just want contracts. And we'll tell them, well, you can access all of our contract templates inside our software so you can pay for that. And that's what happens.

Right now we're getting five. So via Instagram, you just send those people a, not a calendar link and you don't send them the site, you send them to? To our software website. So which is a different website. And then they just check out on that page. They start a free, we had a freemium, now we're using free trial. Okay. And what's the membership price?

Right now it's $1,000 per year. And that's what, so it goes straight to $1,000 per year is what you were billing? Yes. We also have a monthly version. So they were like, I can't afford $250. And you were like, yeah, so pay $1,000 a year. Before we have $500 per year. Yeah. So it was easier. Yeah. The problem is that the value proposition at first was,

Well, pay us and we give you the contracts. But learning that people were churning because once they have their contract, they'll download it and just go away. We have a couple of decisions that we have to make. Is there any reason that you just don't sell services and make money? Well, the reality is we started selling services back in 2019. So in 2021, people, we got a lot of demand. I couldn't keep up. I started selling courses so they could

you know, learn about how to do them themselves. And then after that, and also contract templates and then the education side just, you know, we started making them same amount of money in education as in services. - This is gonna be an important one for you. - Yeah. - All right. So actually, you know what? I'm gonna show you it on my logo. Two most important concepts in business, supply and demand and leverage. So if supply is low and demand is high, what happens to price? - It goes up. - Is that what happened?

Yeah, we started doing that. Yes. But then you created this other thing that was much cheaper rather than just saying, I don't have enough supply. Pay me more. You're right. All right. We wanted to help more people instead of just. Yeah. But the thing is, is that a long enough time horizon, you'll have no one if we don't make this business profitable. Right. Yes. So, OK, tell me why.

we can't shut down the education and software so that we can just do services. And then we can fix the service business to make it make money. Yeah. So the educational side, we already have over 800 people. They all bought like lifetime. Yeah. Lifetime everything. Lifetime everything. The thing with the education is that it's part of

we are giving back to the community and nobody else is doing this. So every time, thanks to the education efforts, we are traveling the world and teaching other people in Guatemala, in the Dominican Republic, in Spain, how the music business works. Because in those places, our content is the university's content. So it's an impact project, right? So that is why the education, you know, it would be

very difficult for us to shut down. And the education without the software is not losing money. It's the software that actually is losing money. Okay, so when we did this breakdown, you said the education loses money. So how much money does the education make if you don't have the software? In reality, the education would be a break-even. Okay. That whole money that we're losing... So this is just zero. Yeah. But you said this is $110,000 of losses. So that means the software...

costs you $150,000 a year and makes you $40,000? Yes. Okay. You could say that. So why can't we be done with the software? So the software right now, there's not a specific reason we can't.

shut it down. We've seen traction on the B2B side of companies in the music industry that are interested in using our software because their clients, like big companies, now need a music contract software to manage their documents. So they play there for us. So what, the software? The software.

But that is something that... How much does it cost you to develop the software? Right now, it's burning $7,000 a month because we cut every employee before. How likely is it, do you think, that you're going to sell the software?

I'm not sure. And the other thing is the software actually right now, the way we are seeing it grow is by bundling services with software. Well, it's obvious that the service is the thing that everyone needs. Yes. And then we just have like this other stuff that we did to be cute. Where do you want to grow from here? What do you want to have happen? The thing that we need is to be profitable. Okay. That we can solve very easily. That's the good news. Yeah.

But it will just be painful. Yeah. But it's good pain. Growing pains. Yeah. Call them growing pains. If you lose a negative, it's a positive. So, okay. So in a world, hypothetically, where you just ended the software tomorrow and then you have the education and services, what is required for you to maintain the education and

Work wise per week right now. It's only one live stream with the community per month or per month Yeah, that's nothing. That's it. Okay, great. Can we just shut down the software we can do that? Okay, great. I love this for us. Okay, so we're gonna X this out. Let's use a red Let's keep this, you know, keep this keep this on brand here. So this is a red and

I'm going to say that this isn't really a business. I'm going to say this is a charity.

You might even want to operate like a nonprofit because it doesn't make any profit anyways. And you're very, you know, kind of impact driven and whatnot. So then what's the cost on the $131,000 in services? The cost would be the associate who is delivering the services. Right now we have a ref share model. But we also have, because the services, for example, this year, we are already at $150,000.

Okay, great. Because now, thanks to the education, the next generation of artists are looking towards us to represent them in deal closing deals, right? So from there, we take a commission from the deal.

Okay. So, for example, we've recently closed several deals that are above $500,000 for the artists. Amazing. And we take 5% from those. Okay. So... Do you guys act as an agent for that? No, they're lawyers, representatives. Those are legal fees that the label will also pay us. Interesting. The music industry is heavily commission-based. Mm-hmm. Mm-hmm.

So they get an advance and the label will sum 5%. The services strike again in making money. Wonderful. So what I want to do is reimagine the business in the simplest format possible that's organized to make you money both short and long term. Is that okay? Yes. All right. So I'm going to draw it across the top here and we're going to draw it in green because this is the money path. All right. It's the money path. You keep your YouTube where it is.

Now what I want you to do is I want you to have four different places that you're going to embed calls to action. All right? So number one is at the 30% mark of every video, I want you to make a quick 30 seconds like, Hey, by the way, you know, if you want us to help you out with your music business right now, just DM me on Instagram and I'd love to help you out. This is my handle. Okay. Number two is the description.

And you want to make sure that it's above the fold. So below this video right now, you'll probably see two links. One is for people who are trying to start a business, which they go to school. And if you already have a business and you're trying to scale and you're like a million bucks a year or more, 500,000 a year or more, $10 million a year or more, you can go to acquisition.com and schedule a call with our team and see if we can help you out. So we have a description. Now on top of that, pinned comment. So you can own that real estate. We also have your profile.

on YouTube, which gets traffic as well. And so those are four places that we can actually just put and all of the CTAs here are DM me on Instagram. Why are we doing that? Because it already works. So I'm not trying to break it. All right. So now everything's going to Instagram. So instead of having the site, we don't even care about the site. Who cares? It doesn't matter.

So we're going to DM me on Instagram. And then from there, what I want you to do is I want you to have them book a call without paying. And then what we're going to do is we're going to sell them. And what we're going to do is we're going to sell them a package.

and we're gonna sell it to the outcome. And you're going to say, hey, a lot of lawyers like to charge by the hour. The reason that we don't do that model is because it disincentivizes us. Basically our incentives are adverse to you. When we do it by the hour, we're incentivized to take as long as possible. So it means it costs you more and it takes longer. That sucks. So what we're gonna do is we're just gonna charge you for the outcome, period, that's it. How's that sound?

Yeah. So we have to qualify them before they can go to the landing page because, you know, there's 10 million artists on Spotify. Sure. And only a thousand are professional, maybe 2000 are professional. So do you see that the landing page? Yeah. But they all eat.

They'll have cars, they'll have cell phones, they'll pay mortgages and rent. We're not, we don't, you sell to a lot of up and comers and newcomers. They're going to use, just like you have been spending your education money that you make money on this dream that you have and losing money, we're going to have them do the same thing. They're going to take their job money and spend it on their dream. And hopefully they make it. But our goal isn't to try and figure out who's going to make it. Our job is to enable the opportunity. So,

The pre-qualification that I would have here is just income. Not like, and if you want, you can add their Spotify if you think that matters, you know, in the qualification. But fundamentally, yeah. Okay. That's what I figured. Yeah. Because if you, I've worked with different artists that their Spotify, for example, I have a Spotify. I'm a guitar player and I have 15,000 monthly listeners, but you wouldn't take that to determine whether I can pay you or not. So income. But we are currently doing it that way.

that way. Yeah, you're right. Yeah, you're right. So what we're going to do is income, but we're going to do through budget authority need timing. That's the big four, right? So do you have the money? Is there somebody else who needs to be on the phone? Your grandmother, your dog, your, your agent, whatever need. So how important is this to you?

And then timing. If we were to get you set up, how quickly would you want us to make this, get this trademark or get this thing filed? You want to take the people who have the money and want to do it now and are able to make this decision. That's the qualification. Now, the big question.

is what are we going to charge? So you're asking me? I'm going to give you a hint. It's more than $250. Hopefully the price is right with what you're going to charge. So the average ticket on the service size between the ongoing one-time and the consultation is about $1,500. That's the average. Okay. And a lot of that is from people just getting hourly charged?

- It's, no, it's basically the ongoing right now is about, the lower ticket is about $1,000 per month. - Okay. - Because we are not charging them by the hour like a traditional lawyer. - Sure. - So, and this is $750 usually, so you can see that if you combine the other, they usually get $2,000. - So this is what I want you to do. I would love you to charge $5,000. I feel like that's gonna be a stretch for you emotionally. So how about we start at three?

Can you do five? We can do five. Can you emotionally do five? Yeah. We're selling right now three months for $4,000. Great. Well then, shoot, then we might as well do six. Six is the same as five. You know what? I'll meet you in the middle. $5,800. Okay.

All right. This is what we're going to sell. That's your retainer. Right. So either we can sell. So, okay, this is a question for you. I do, I would prefer to sell the outcome if it's just a clear outcome that they're, they're going for. Or you can sell retainer. Right. And just say like, it's 5,800. I'll draw from that. Whatever. I prefer outcome personally, because I don't want you to be tied to hourly. If you can, if you can afford not to, you good with that? Yeah. We can move towards the outcome. If it's the type of deal that we want to work with, like for example, when I say outcome, I mean like the contract,

the contracts or the, that kind of thing. Like when it's the commission based stuff, I want the 5,800 plus the percentage. That's how we were doing it right now. Good. We just need to raise the prices. And we also need to organize the business so that we're optimizing for this outcome, not three different outcomes and confusing everybody. Right. Okay. Now if on the sales call,

Someone is unqualified. So this depends on your deal flow, but I'm assuming that you've got time to take calls. Yeah, because my time is spread around trying to understand this. We'd help you, man. All right, this will work. When you have these people that are coming to call, what I want to add is before we have to sell the outcome, so this is kind of like on the call, right here beforehand, we're going to add a VSL, okay? Okay.

So you're familiar with the VSL? - Yeah. - VSLs letter? Do you have one right now? - For the course, yes. - Okay. So instead I just need you to make one, seven minutes, you know, five to seven minutes, doesn't need to be long. Just explaining how you do things in your process. - Okay. - And the other people that you've worked with, some of the successful outcomes,

reviews, things like that. And then also I would set expectations, which is like on this call, we're going to have one or two outcomes. Either you want more personalized attention and we'll give you the outcome that you want. Or if you're like just starting out, we do have an education thing that if you can't afford our actual services, you can do it on your own. I've done so. Yeah. Now the thing is, is that, you know what? I don't even know if I like that. I'm deleting. I'm deleting that. So the VSL is going to sell the services. That's it. When you get on the call,

if the person lied about their income or lied about their qualifications, which does happen, then you can immediately triage them and say, so triage doesn't like you split and say, you know what? You can tell like this isn't going to be a service to sale for $6,000 plus a percentage. Instead, it's going to be, you know, a one-time education product sale. And then you can sell that. Now, right now you have this 500 and then 500. I'm going to wager that you don't need, like if you're getting people to buy this in a, on a checkout page,

Typically you can triple the price with a phone call of the same thing. So you could probably sell for three grand. So if we're charging six here, I would say probably somewhere in the neighborhood of like two to three K is the right price point for the education downsell. But the only purpose of that is just so that you can maximize your time on the call so that you can still kind of have something. And if you need to do a payment plan or whatever, you know what I mean? At that point, you're just trying to liquidate your time. But fundamentally, if we were to do this,

Let's walk through what it actually looks like now. You have your YouTube videos. Now all of the calls to action. The way I see my YouTube is I have, you know, 2000 video, whatever, how many videos I have. And each of them are basically like little mini ads that are always running. And underneath of the video or the quality ad,

I have my actual call to action and I can, I have this surface area across the whole internet that I can change and redirect all of that traffic from all of my videos to wherever I want. Then you can go back and on your biggest videos, go get pinned comments that, you know, um, that have the same call to action because some people just read the comments.

change your profile and then going forward in your videos you put the the CTA towards it to DMing on Instagram. We're gonna completely ignore the site since that's where all of your all of your sales are happening on DM. So let's just push everyone to DM. Now how many followers per month are you getting? I'm getting about 800 new followers. Guess what? We're gonna do okay so this is thing one. Thing two is that for every new follower you get I want you to DM them and say

are you here for free content or entertainment whatever entertainment or do you want help and then every person who says they want help is a lead so right now if you think about that you got 800 new leads a month that you can work realistically you close five percent of those i mean it's 40 more sales a month at 6k there's 240. that's just from not including your existing volume

which we're now going to redirect everything to the most efficient monetization model. What stops you from doing this? Nothing. Well, shit. I think this will make you a lot. And I think this will save your business. And I think this will also make you very rich. So we can help more people. Yeah, because...

You can't help people if you're broke. The thing is, is that the education, I think long-term, long, long-term, you might end up just giving it away for free because people are coming from that group as well, I'm assuming. And then they buy your services. And that's why I'm not trying to attack this because this is long-term lead nurture for you. So where is this hosted?

- Yeah, Kajabi. - Kajabi, well there's your first mistake. - I knew it. - No, but if you were to do it on school, there's a couple benefits. The biggest one is that we have more active users than any other group platform.

and community platforms. So like, you'll probably just get people coming into your community anyways. But you can also, every single person who gets into the group, you can offer a free onboarding call as a part, as a benefit of being in the community. And then you can use those as setting calls to either triage them to services or just refer them to free stuff. - Right, like instead of coming from YouTube, they would come from the school and then-- - Think about it like this. This is actually a really good visual.

So your old way, let's do this in red because Michael loves colors. Love colors too, Michael. So old way was this. You had one source of eyeballs, right? And you were splitting it between three different places. The new way is you now have three different sources of eyeballs and you're forcing all of them

through the most efficient monetization vehicle. Because you've got your YouTube, you've got your Instagram, and then you've got your group. And all three of those are pushing to the one thing that we know makes you the most money that also people want. And we're pricing it in a way that actually makes you money. And the question would be, so we wouldn't

we would create from the DM or the WhatsApp, we would create a calendar link. They'll go there. They'll get the initial consultation for free. It's going to be... Let's be clear. It's not a consultation. It's a sales call. Yeah, it's a sales call. Then from there, once they schedule the call, they go to a VSL.

to prepare them. Yes, yeah, before the call. Before the call, yeah, to prepare them and their expectations and everything. Then on the sales call, we'll identify whether we can sell them our services or if not, downsell them to our course. Exactly. Right, so our core offer is the results, right, the outcome. That's our core offer. Yeah. And that outcome is

it's based on your specific need and our ability to fulfill that. But we're not saying when people are coming to us because we're lawyers in this specific niche,

We don't have to talk about specific outcomes. No, not like you're getting signed with a record label. No, no. We're going to do the work to prepare you for that. You're still going to have to do that on your own. And then when that deal comes, we ask for 5%. And the reason we do that is because it makes it affordable for you at $5,800. If we didn't charge the percentage and if you're like, oh, I don't want to pay that percentage, then you can pay us $25,000.

So we'll do $25,000 without the percentage or we'll do $5,800 with the percentage. Got it. Got it. And then... Do you think that also gives you a very nice price anchor? Yeah, it makes sense because the percentage right now...

The last two deals, the average has been like 40 something K. Okay. And the lead magnet would be the sales call. Yeah. I want to just do this as the easiest, like what is the easiest thing that I can do to immediately fix this business and make it profitable? Okay. If we wanted to add something else, we could, but I just don't want to right now. Okay. We're going from spraying the traffic all over place into places that lose money to pointing three different places to the one place that makes money and doing more of what already works.

And we're just going to add a little bit of qualification at a little VSL, fix the pricing. And then we're also going to route all the new followers that come there too. So you're going to have a, you will likely have a lot of opportunities. So you'll likely be taking five, you know, eight, 10, 12 sales calls a day. Okay.

Which is a good thing. No, it's great. And I have three people that can actually do that with me. So if everyone has their own calendar link, as you explain in your book, then okay. I have a book on the best-selling author in Spanish in this niche. Right. Where do you see that fitting in? Maybe that's the lead magnet, like giving it out for free like you do? Because they usually become super fans. Yeah, of course. Or is that just another...

So there's a couple, I'd say right off the top of my head there's two places that we could, like if you wanted to use it now, I would say that you could give it to people who are unqualified. If you don't think you could, like if you look at somebody's profile and you don't think they look like, I mean, you could probably tell if somebody's not qualified. You could say, hey, it doesn't look like you're ready for our level of services, but because I want to invest in the relationship long term, here's a copy of my book. I think that would be a very elegant way to not overly complexify what already will work.

long term we could start using it as a way that we would drive traffic in the future and then you can have a call team call the people who bought the book and then see if they're you know they want more help and then you could basically bring it would just we'd all we would do is we add is another circle but right now you have three more than sufficient traffic sources that you were just wildly under monetizing and we just need to fix that okay and the last question would be

on the software side. Yeah. Because the product roadmap is almost finished entirely with all of the features that the companies are looking for. Yeah. If I'm not investing any energies on that, I want to know. I'll believe that when I see it. Okay. So if I'm not, suppose I'm not spending energy. In a world that doesn't exist. Yes. Yeah. Suppose that in fantasy land. Is there a way that we can create like a sunset period where

where we would say, okay, I'm going to give the team X amount of time to roll out all of the features that these companies that are saying I want to use it, I'm going to pay for it. You know, $15,000, $25,000 per year for the software. Is there a way to create that while we're focusing on this? So at the very beginning, you know, I said like, what do you want? And so we had to fix making this make money because you're going to run out of money. Yes. And so we have to solve that.

The thing that makes me hesitate with the software is the amount of work and the amount of expertise it takes to make software really work is really high. And so I would be more inclined to say, like, if you have some of these big companies, you might just give them the software or have them just say, like, you're like, hey, instead of $25,000 a year, if you just pay me $100,000 or pay me $200,000, I'll just give you the whole thing. And that's basically you getting it at cost and saving two years. And then you can focus on this. Got it.

That's, of course, if you want to make money. Of course. No, no, no. I understand. I just want to have like the different scenarios. Yeah. I mean, the alternative scenario is that you burn the education, you burn the services to the ground, you go all in on the software and you need to be able to fund that loss for a while and then actually build it right. That doesn't seem like it's a it that's more fantasy than reality. Then you learned a ton of lessons.

which is fine. Everybody just gets better from learning and you build a really good business, which I think you have all the makings. You literally have everything in place. They were just organized wrong. That's the good news. It's like, we don't have to build anything. We just have to take what we already had, redirect it through a better monetization vehicle. And that's it.

And so you like, this is the first step. We add traffic here as the second step. And then we'll add the book as the third step later. But for now you just need to step one and step two. We have enough leads to probably fill up your calendar plus one other person, maybe two. And if you have three people selling full time and you have a $6,000 thing, you could be at $18,000 a day, $30,000 a day, $50,000 a day. And the next problem that's going to hit you is that you're not going to have the team to actually deliver on this stuff.

which we'll cross later. But that's what this is going to do. This is going to break the business, but you'll be making money. And then we'll take that money that we're making and then we'll solve the thing that's broken, which is that we're going to hire more abogados. So we're getting Spanish for lawyer.

You're doing it right. So I'm giving you a little Puerto Rican Spanish there. So our constraint right now on your framework, on the scaling workshop is demand. Because we're not only starting and stopping, but also we're not directing them through the proper channels.

and you were mispriced. So I have my little moniker for the six big mistakes that small business owners make. So let's make those in red. And I think you were making almost all of them, which is great. - The good thing is it's only up from here. - Yeah, so you were selling to too many different avatars. So that's number one. Focus, which is that you had more than one business. So you were hitting that one, you're hitting this one.

So over expansion, which I will not say that you were wrong because we put it under focus. I'll give you a neutral on that one. Put it there to be aware. Then we have compensation. So it's are you overpaying your people? Which right now I don't get that impression. Underpriced.

which you were, or mispriced. So you had that one. And then this one is single product. So that's when somebody has a front end and a back end, which I'll say that you had kind of like a half issue. We had the $250 per hour service fee, but we didn't have that kind of percentage win rate yet, and it wasn't part of a standard offer. So I'll say that you had like a little X, a little mini X there. But the good news is that these are the mistakes that most small business owners make.

and it's normal and it's okay and that's what we're fixing and the next phase to have a timeline or at least to be aware of our next phase would be do this until we get to a million per month is that your i don't know if you'll get to a million a month from this you will certainly make a lot more than you are now and so the next thing that's going to break is you're going to run out of orders so the next is you're going to run into a supply constraint i actually think you have probably more demand like

you will not be able to sell through the demand that you already have without expanding supply. But if we completely utilize your existing supply of work that you could do at the appropriate price, you could absolutely make this into a multimillion dollar program.

Yeah, it's just becoming a law firm, you know, a bigger law firm. Yeah, and a specialized law firm, which is good. So you have that niche down. You have a very specific niche. And there's nice thing is that there's a lot of people who want this service. And the price point that we're charging is an appropriate price for somebody who's, you know, wanting to make a bet on themselves and their career. You have to make an investment just like you do. They have to make an investment too. Yeah. And that number is that the $5,000, is that for any type of outcome?

No, so I mean, you'll know this better than I do. But I just want to make sure that, you know, the average ticket. I want to make sure that I'm running at at least 80% gross margins for service minimum. So your actual cost, so your actual cost on this should be, let's see, it should be less than call it like 1200 bucks or I'll say 1100. So if you're less than $1100 in terms of total cost,

uh for the liver that to deliver that then you can then you charge 5800.

And so I'm guessing your man hours are going to cost you less. I mean, I don't know what you pay your lawyers, but let's say it's $100 an hour. If it's less than 11 hours to do it, then you're good to go. And if they do it in five, amazing. Okay. So if I've had the cost, for example, a lawyer cost me X amount per month. Now I know that I need to be making... Five times more. Five times more. Minimum. Okay. And that may sound crazy to anybody who's listening to this who doesn't have a business, but let me...

Let me show you a visual. So good. So good. This is great. People say that, but let's imagine we have a hundred dollars of revenue. All right. To keep it simple. If you have a 20% gross, sorry, a 20% cost, but 80% gross margin business, then it's like, cool. So we already have $20 gone. So we have $80 left.

But we're still going to have marketing that we got to spend. We're going to still have admin costs, you know, people who are scheduling and all that stuff. We have sales that we're going to have to pay on top of that. And that's going to be the majority for this business because the labor is going to be here, right, in terms of your cost of goods. And so maybe all of these things cost, you know, 60%, right? So then we still have a 20% margin in the business. But that sounds greedy when you're like, oh my God, there's 80%. It's like, yeah, but we got to do all the other costs, all the 80%.

And then whatever's left is our profit. Now, hopefully you can run this thing at 30. Right. And then you have a 50% margin here, which would be wonderful. And then we smile. Got it. So all in all, we went from sad face to smiley face. Did it. Great. I was aware that

services was the the play when we focus on services this year and we're already making way more money but that was you already forex the business just by focusing on that one thing and that's with still having the distraction like you absolutely can be at multiple millions a year like no question given the fact that you have a 90 000 youtube following you have a 23 000 person instagram following you have a community of people who love you and are raving fans

You have all of the foundation. So the good news is that all the work that you spent doing over the last however many years was not wasted. You just didn't monetize it well. And the good news is you can do it now. So no big deal. What's the role of, for example, now that we're getting invitations

to go and speak to other countries. What do you think about that from the focus side? Is that something for distribution? Because if no other lawyers are doing that, no other lawyers are publishing their books, is that something that we can use to differentiate from other, particularly in service-based businesses? It's a good question. It's a tough call. And the reason for that is that it's for sure a long-term investment to speak on stages and things like that. The thing is that you're currently not

constraint. So you speaking on stages will just generate more demand that you can't handle. Let's play it out the other way. If you speak on stages and you take your eye off the ball in the business, you lose. If you focus on the business and you continue to grow the firm,

the stage will still be there because you'll just be bigger. So that is why maybe the counter argument would be if you want us to go to the stage, you have to pay us an amount that is worth it. If you know that you generate three sales a day at $6,000 when you're there and it takes you two days, then your speaking fee is...

Yeah. So $36,000 plus travel. Exactly. You already have the number because you have it on a day-to-day basis. Yeah. And also to be fair, the opportunity cost isn't just what money you would have made, but also the focus and the distraction that takes away as well. So there's hard costs and soft costs. The hard cost is you really just won't make these six sales. The soft cost is what else would you have done in between and then not had to deal with any of this hassle? Perfect. Will you do this? Yes. All right. Deal. Done.

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