$100K Per Month, with No Employees Ep 482

Summary Notes


Alex Hormozi, founder of Acquisition.com, shares his journey from building a profitable $100,000 per month business with no employees at 26 to aiming for a billion-dollar venture, all while documenting the process for others to learn. He outlines his strategy for success: creating irresistible offers, mastering advertising to generate leads, and effectively upselling services. Hormozi emphasizes the importance of choosing the right partners, setting clear expectations, and understanding the power of being a 'rainmaker'—someone who can generate sales and opportunities consistently. He also offers a step-by-step tech setup for lead generation and stresses the potential of local markets, where trust and physical proximity to customers can greatly enhance sales. His ultimate goal is to help businesses scale to the point where Acquisition.com can further invest and assist in their growth.

Summary Notes

Being a Rainmaker as a Skill

  • Rainmaking is a skill applicable across industries that involves creating offers, running ads, and upselling.
  • Alex Mosey emphasizes the value of documenting the entrepreneurial journey, which he does through Acquisition.com.
  • He built a successful business model with no employees at a young age, which he believes others can replicate.

"Being a rainmaker is a skill that can feed you for life."

This quote underlines the importance of rainmaking as a lifelong valuable skill for entrepreneurs.

"I'm trying to build a billion dollar thing with acquisition.com."

Alex Mosey expresses his ambition to build a significant business and his regret that business magnates did not document their journeys.

Building a Profitable Business with Minimal Investment

  • Alex Mosey shares his experience of building a $100,000 per month profit business without employees.
  • The business model he describes is accessible to anyone regardless of age or financial status.
  • He provides a step-by-step guide to setting up a similar business.

"I built $100,000 per month profit business with no employees for less than $1,000 when I was 26."

This quote details Alex Mosey's achievement of creating a highly profitable business with minimal startup costs.

Learning Marketable Skills for Free

  • Alex Mosey insists that the skills needed to replicate his business model are freely learnable.
  • He offers to provide a detailed setup guide for interested individuals.
  • His goal is to help others grow their businesses so that his company can invest and scale them further.

"And I did all this stuff using skills that anyone can learn for free."

The quote highlights that the skills required to build a successful business are accessible without cost.

The Value of Public Speaking and Sharing Expertise

  • Alex Mosey's experience speaking at a marketing event led to unexpected opportunities.
  • He shared his knowledge of using Facebook ads for lead generation in the fitness industry.
  • This sharing of expertise opened doors for potential business collaborations.

"So when I had my chain of gyms, I got asked to speak at this marketing event."

This quote sets the stage for how public speaking engagements can lead to new business prospects.

Business Model for Brick and Mortar: Six Week Challenge

  • Alex Mosey's business model involved running ads for a six-week weight loss challenge.
  • The model included a landing page, lead confirmation calls, personalized follow-ups, and a no-risk offer.
  • He emphasizes the importance of selling expensive items and providing satisfaction guarantees.

"I would run ads for a six week weight loss challenge."

This quote explains the core offer of Alex Mosey's business model, which was a time-bound weight loss program.

Financial Mechanics of the Business Model

  • The cost per lead was low, and the conversion rate was high, leading to a profitable return on investment.
  • The upfront payment from customers funded ongoing marketing efforts, enabling a no money down approach.
  • The business model is still relevant and applicable today in various industries.

"So if I put five grand into marketing, I get about 60,000 out."

This quote illustrates the effective return on investment that Alex Mosey's business model could achieve.

Discovering a More Profitable Business Approach

  • Alex Mosey realized he made more money launching gyms than running them due to the higher revenue from initial offers.
  • This realization led him to a business model focused on launching gyms rather than managing them long-term.
  • The model allowed for significant profits with minimal ongoing operational costs.

"And the reason for that was that once everyone converted from my front end program to my back end program, the average revenue per week per client went from $100 a week to $50 a week."

This quote explains the financial insight that led to a shift in Alex Mosey's business strategy.

Capitalizing on New Business Opportunities

  • After sharing his model at a speaking event, Alex Mosey was approached by many business owners seeking his help.
  • Despite initially declining, he recognized the potential to monetize his expertise.
  • He crafted an offer to launch other gyms using his model, sharing in the generated revenue.

"I got bumrushed by all these folks asking me to help them do what I was doing, right?"

This quote describes the immediate interest from other business owners after Alex Mosey shared his successful business model.

"Maybe I could launch their gyms like I did my own and work out some sort of deal to get a percentage of the revenue that I was bringing in."

This quote reveals Alex Mosey's entrepreneurial instinct to turn his expertise into a service for other businesses.

Key Theme: The Business Model for Single Individuals or Married Couples

  • Alex Mosey discusses a no-risk business model that can be applied by anyone, regardless of marital status.
  • The model involves partnering with brick-and-mortar businesses to generate leads and convert them into customers.
  • It requires a compelling offer, the ability to run ads, and sales skills to be successful.

So it was a no risk offer for them. Remember, like, I spent all my time and my money. They didn't have to do anything, and I got to eat what I killed. That was the deal.

This quote emphasizes the no-risk aspect for the business owners, as Alex took on the financial and time investment risks.

If you know these three things, you can make this business model work for you.

Alex outlines the three key skills required to make the business model successful: creating a compelling offer, running ads, and selling.

Key Theme: Creating a Compelling Offer

  • A compelling offer is essential to attract brick-and-mortar businesses.
  • The offer can be a discounted or free service to generate leads.
  • Upselling is a strategy to increase revenue after providing a discounted offer.

So, number one is you have to have a very compelling offer for brick and mortar business that gets lead.

Alex stresses the importance of having an attractive offer to generate leads for the business.

Key Theme: Running Ads and Selling

  • Learning to run ads is crucial for generating leads.
  • Selling skills are needed to convert leads into paying customers.

Number two is you got to learn how to run ads. Not that complicated. Nowadays. You can run lead ads. You can watch them on YouTube. It's not that complex to do.

Alex explains that running ads is not overly complex and can be self-taught through resources like YouTube.

Number three, you learn how to sell.

The ability to sell is highlighted as the third essential skill for the business model.

Key Theme: Negotiating with Business Owners

  • Negotiating the lowest possible cost for service fulfillment is critical.
  • Services with low marginal costs are ideal for this model.
  • The business model involves taking on the risk and labor in exchange for potential future profits.

You then ask them what's the absolute cheapest that they would fulfill customers for during this thing that you're selling.

Alex discusses the importance of negotiating the cost of service fulfillment with business owners.

Key Theme: Financial Structure and Profits

  • The financial structure involves setting up a low-cost initial consultation followed by a more expensive treatment plan.
  • Profits are made from the difference between the charge to the customer and the fulfillment cost.
  • Additional profits can be made from selling retail products.

And if you ran this play for a month and spent $400 a day in ads, that's $12,000 total. Remember, you make money quickly so you can reinvest it.

Alex illustrates how the ad spend can lead to significant gross revenue, which can be reinvested for further growth.

Key Theme: The Ugly Side of the Business Model

  • Alex shares the challenges he faced, such as overwhelming facilities and partnering with struggling businesses.
  • It's important to plan fulfillment capacity and partner with reputable businesses.
  • Transparency about costs and revenue expectations with business partners is crucial.

So here's what I would do different if I could do this again. Now I ran this model for a while. Here are eleven things that went wrong for me that I would have changed.

Alex reflects on the mistakes he made and what he would have done differently, emphasizing the importance of learning from experience.

Number one. I massively overwhelmed the facilities.

This quote addresses the issue of not properly planning for the increased customer volume at the facilities.

Number two. I partnered with struggling facilities.

Alex acknowledges the mistake of choosing the wrong business partners based on their willingness rather than their capability.

Number three. In retrospect I would have explained all the cost I would incur upfront hotels, airfare, food, rental, ad spend, et cetera.

The quote underlines the importance of being transparent about all incurred costs to avoid misunderstandings with business partners.

Setting Expectations and Transparency

  • Alex Mosey emphasizes the importance of setting clear expectations upfront.
  • Transparency with partners about the mechanics of the business model is crucial.
  • Initially, Alex was hesitant to set firm expectations for fear of scaring off potential partners.

"So I want to do more than that. So you really got to prepare for this, right? So it's setting expectations." "So all in all, I would have been more transparent up front, made sure they really understood how this was going to happen, like the mechanics behind it."

These quotes highlight the lesson learned about the necessity of preparing partners for the reality of the business and being transparent about how things will work to avoid misunderstandings later on.

Importance of Contracts and Documentation

  • Contracts are essential for clarifying expectations and holding parties accountable.
  • Documenting processes and sales calls is invaluable for training and marketing purposes.
  • Alex regrets not filming his business activities, which could have been used to showcase success and attract organic marketing opportunities.

"Five, I'd have an agreement, which I don't have to spell this stuff out, right? So this would further clarify expectations." "I would have filmed as much as humanly possible. This is probably my biggest regret through this entire thing."

These quotes reveal the significance of having written agreements to formalize expectations and the missed opportunity of not documenting business activities, which could have been leveraged for growth and training.

Leveraging Content and Branding

  • Creating and sharing content could have significantly enhanced marketing efforts.
  • Having a strong brand and content could have provided more negotiating power with partners.
  • Alex acknowledges the value of content in marketing and wishes he had capitalized on it.

"I would have had 30 plus gyms and thousands of sales calls and in person documented for training." "Imagine how easy it would be to market and sell this organic. I'll be like another month, another 200 sales."

These quotes express regret over not capturing and utilizing content that could have been a powerful tool for marketing and strengthening negotiating positions.

Partner Selection and Accountability

  • Choosing the right partners is critical to business success.
  • Partners who engage in unethical practices can damage reputation and financial stability.
  • Alex suggests including specific clauses in contracts to penalize partners who encourage customers to refund and re-sign at a lower rate, thereby protecting his interests.

"I would have done deals with better people, less shady, who just basically said one guy was like, there's too many people here. Just refund because it wasn't his money, right?" "I would have included a clause in my contract that I'd have them sign separately for added transparency and accountability."

The quotes emphasize the importance of carefully selecting partners who align with ethical business practices and the idea of using contracts to enforce accountability and protect against unscrupulous behavior.

The Value of Being a Rainmaker

  • Being a rainmaker is about creating opportunities and generating revenue, not just making sales.
  • The skillset involves crafting compelling offers, running ads, and upselling services.
  • This ability is described as a "license to print money" and a skill that can continually provide opportunities.

"All you got to do, no matter what industry you're in, is learn one, how to make a grand slam offer." "You're not getting commission. That's why this is such a profitable opportunity. You're getting everything minus what you negotiate, because you are the one taking the risk of capital and time."

Alex Mosey clarifies that a rainmaker is someone who takes initiative, risks, and leverages their skills to create and capitalize on business opportunities, and this skillset is invaluable across industries.

Strategic Planning and Market Testing

  • Testing different markets before committing resources can identify the most lucrative opportunities.
  • Spending a small amount on ads in various markets can reveal where leads are cheapest and most abundant.
  • This strategic approach allows for focusing efforts on the most promising markets.

"I would have run maybe $250 in ads in every market before I decided to take them on." "So then I would have... focus my time on the opportunity, right?"

The quotes illustrate a strategic method for determining which markets are most effective for business expansion, suggesting that a small investment in testing can lead to more informed and profitable decisions.

Leveraging High-Value Markets and Products

  • Alex Mosey emphasizes the importance of working with top-tier markets to maximize earnings.
  • He suggests selling more expensive products or services to increase income.
  • This strategy is applicable across various industries, including insurance, pest control, and solar energy.
  • Targeting high-value items can lead to significant income, potentially exceeding $100,000 per month.

"Only worked with the facilities in the absolute best markets, so it would have given me more leverage, aka more money per unit of time and effort that I spent."

This quote highlights Alex's regret for not focusing on the most lucrative markets earlier, which would have increased his earnings relative to time and effort invested.

"I would try and find the most expensive stuff to sell, right? So think thousands, not hundreds, here."

Alex is advising to aim for selling higher-priced items to significantly boost income, suggesting a focus on premium products or services.

Lead Generation and Upselling Strategy

  • Alex Mosey outlines a strategy for generating high-quality leads and upselling.
  • He recommends marketing a low-cost or free item as a lead magnet and then upselling to a more expensive product or service.
  • This approach is designed to improve lead quality and reduce appointment cancellations and rescheduling.

"So if you want to sell stuff in the thousands, market a cheap or free thing, that's zero to $99, sell that thing as a lead magnet and then upsell them into a multi thousand dollars thing."

Alex proposes using a low-cost offer to attract customers and then upselling them to more expensive options, enhancing lead quality and commitment.

Simplified Tech Setup for Lead Acquisition

  • Alex Mosey provides a quick guide for a non-tech-savvy audience to set up a lead acquisition system.
  • He breaks down the process into running Facebook lead ads, using Zapier to connect Facebook leads to Google Sheets, and setting up SMS notifications for new leads.
  • This system is designed to be set up quickly, within 60 minutes, and does not require advanced technical skills.

"Google how to run a Facebook lead ad. That's number one, Facebook lead ad. You just Google how to run one."

Alex is instructing on the first step to acquire leads, which involves learning to create Facebook lead ads through a simple Google search.

"Google Zapier Facebook lead ad to Google sheets. This will give you a makeshift CRM."

By connecting Facebook lead ads to Google Sheets via Zapier, Alex is suggesting a simple way to organize leads without a complex CRM system.

Scaling and Negotiating in Different Markets

  • Alex Mosey discusses strategies for scaling a business model across various markets.
  • He suggests starting by offering services at a local business to test different offers and pricing.
  • Once a profitable model is identified, it can be replicated in other markets.
  • Selling in person and over the phone are contrasted, with phone sales being more efficient.

"Once you keep configuring the price to get ten to one or more, you can then copy or paste it. In any market, mind you, you might be able to do this and not have as favorable of a setup with the first location."

Alex explains the process of fine-tuning the offer until achieving a high return on investment, which can then be replicated in other markets.

"If it's whatever your micro local market is, you automatically trust it."

This quote underscores the advantage of local advertising, where inherent trust can lead to better sales of high-ticket items with less effort.

The Path to Financial Success Without Risk

  • Alex Mosey shares his personal experience of recovering financially after losing everything.
  • He emphasizes that the skills and strategies he discusses are proven and have been personally utilized by him.
  • Alex's goal is to enable others to build wealth and eventually invest in their businesses for further growth.

"I've lost it all twice. I know exactly what I would do because I've already done it, all right? This is what I did and this is what I fell back on when I lost everything."

Alex shares his credibility and resilience by mentioning his personal setbacks and the consistent strategy he used to rebuild his wealth.

"This is how I did it. And so my goal again, for everybody watching this is that I hope that get used to stuff, make all the money past 3 million, get into the 10, 20, 50, et cetera, and then allow us to invest in your business so we can help you scale beyond that."

The quote expresses Alex's desire to help his audience reach a level of success where he can further contribute to their growth through investment.

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