Alex Hormozi Shows Me How to Scale to $300,000/Month (Private Live Call)

0:00 ultimate context if if that's fine um so we did about 210k uh during the 100 which is basically 70k a month right and the goal for 2025 is uh 150 to 200k I think we can do a month and um basically how we made the 210k was uh people join our 97 a month Community where we help like coaches School Community owners get more clients with content and um 50% of these people end up upselling to either a 1K uh annual plan or 5K mentorship which also includes the community right um I would say 80% of the 210k came from the um annual up upsells especially the 5K one right and um we have about

0:48 46% painful uh rate uh the the program was five 5K um so my question is and the traffic it's crazy actually I didn't even believe it during the 100 but at the traffic 80% of it was from Word of Mouth which is crazy like a lot of it going viral on school itself that's why school is great um and also just people telling others or like on social media ET so cheap just get people to say good things 100% and because of the like high Abel rate that we have the turn is showing pretty low as well because obviously half of the people are annual so it shows like 2 point something per for now so all of that stats look good so my question is uh of course the plan

1:34 is do more and better I've consumed enough for most content over the past like four years so uh that's that's clear but I just wanted to ask you um one more thing which is like if the 80% of the traffic came from word of mouth right would you say that I still should go and like because maybe it's an stupid question but I don't spend much time on traffic because kind of people come and then I you know uh it's easy that way do think I should absolutely still allocate like four or six hours a day if I want to grow obviously on getting traffic with because I I have this like stupid limiting belief what if I do that and then I actually lose my thing which is helping people having the connection with them at the time that's why I have the word of mouth yeah this is where you

2:20 can hire someone to do to get more traffic for you because like right now the number one traffic Source you have is your existing customers and so you don't want to jeopardize your existing traffic source and right now you're the one who's delivering and so everyone's very happy with it and they tell their friends and that's how your business Grows by the way this is how normal businesses work uh just just outside of the internet World um this is kind of how it normally works you do a good job people tell people and then your business grows um but uh with regards what you're what you're looking at you have the cash and the resources now to be able to hire someone to do some of these that you can have you can pay someone to do promotion eight hours a day and you do none and you just pay them and then the cost for you is just the hours it takes to train them uh which then it goes training up front and then you manage uh you know for an hour or two a week after that so that's a good trade so if you said hey should I

3:05 spend two hours a week managing someone who can spend 40 on promotion I would say yeah that's a good trade now you might have to take some upfront to get them you know uh on boarded and up to speed so that they can do what you want them to do but that that's business you know like that's how how it works so big objective number one is don't don't don't don't risk risk the base right never risk the base of customers like you have the audience you have the risk like the base you never you never risk that that's the main that's the main asset you're building is that Goodwill That Word of Mouth Etc don't risk that but you can take some of those resources to bring more people in and let more let more people know about it yeah that's great I think school Affiliates will be very relevant here yeah probably it'll be great people are already doing it for you so now they'll just get compensated to do it yeah

3:51 that's awesome cool thank you so much uh the next one is um so for for our Avatar right do do you see like any problem with the fact that we upsell 50% of the people can it be that I'm just charging too low 97 a month for the um Avatar and they kind of come and then pretty much all of them want to upsell and also another I don't know if it's a problem or not but we have people in the community that want to get let's say to their first 10K month and we have like half of the people that are doing 10K month want to go to 50 I haven't seen a like big conflict there yet but um yeah would you say you see anything weird in terms of the pricing structure or not really yeah not really mostly because if you were to change the 97 I don't think it would make a huge difference in terms

4:37 of the economics of the business but you might lose people who otherwise would upsell later and so for me it's like it sounds like all the economics are doing really well with the business and so like you have one of these good situations which you know maybe that's four years of prosing content I'm not gonna take that I'm just kid um no you're doing a great job man um the you you do just need to do more better like that's where you're at right now and so the more just doesn't have to be you doing it so the business needs to do more you need to keep doing the thing that's most valuable which is getting people a good experience um in what you teach yeah that's great thank you so much uh one long-term question as well uh which is like if you were me um let's say you want to grow to million a month

5:23 and actually have great client results and like the only you do grow to a million a month yeah yeah got it so like what would be if you had to focus on a couple of things like strategically like that you kind of dominate you not the world marketplace in a good way yeah what would you do B picture it's going to be renewal R yeah so think about it like this let's say like let's play it out so let's say that you bring this guy in and him doing some promotion increases your sales double okay so it doubles the amount of people that are coming in fine so that takes us to one 60 a month okay just from that great now if you get I said this earlier if you get 80% of people to renew for example then that means that your

6:10 company is going to go to 750,000 a month and then it'll plate out that's if you get 80% to renew if you get 50% to renew it'll cap at 300 if you get 67% to renew it'll cap at 450 right and so that's going to be a huge lever on how big the business gets and the nice thing is that when you grow via retention the infrastructure of the business can grow really organically with high quality because it will like next year if you go from 150 to 300 then it's like cool you only had to like you didn't have to increase more sales guys you didn't need to increase traffic sales velocity is the same you sell the same number of people every month and you just get better and better right and so that is the most stable way to grow so just my my biggest my biggest you know like if I were you right is that you need to track customer success

6:57 scores NPS scores customer stat action uh really militantly to see if any of those drop at any point because then that'll give you a leading indicator that like something's wrong and need to focus on it because otherwise that jeopardizes the whole business and so put all of your attention there and then in terms of like bringing other people in just bring those people in as as you can handle the volume without dropping the quality of service so it's always paired metrics it's like quantity and quality are always paired same like speed and qu quality are always paired so it's like okay cool we still have twice as many people but our results suffering yeah yes okay cut it back to just sell 50% more instead of twice as many now okay our results are good there and we had to add this other person for infrastructure now we can bump it back up again right you just kind of always have to keep your eye on that rather than growing at all all cost because when you grow at all

7:42 costs it hurts yeah cool and would you you would say that because like most of the sales were obviously the 5K uh one1 mentorship our Sal it also include the community probably like if I feel already it's getting like pretty full I need to either High some one or most likely just increase the price like from 5K anual to 7.51 would you would say it depends on what you want to do so this is kind of like the Evelyn conversation earlier so it's kind of like the milk so either you can raise the price so like there's fundamentally you've got three three paths to increasing how much you make so number one is you just raise the price keep the keep the volume the same the second is that you sell more people and you do more distributed so one to many so our small group first and then

8:28 eventually one to many and then the third option is you hire other people to do it for you right and so those are kind of the three paths the lowest operational drag path is to just raise the price um so I would say that my bet would be a combination of raise price and semi-privates and that would be like first like which one you do first raising price is the easiest um that you can do so that's probably where I would start yeah and the last one really quick if if I can so uh once I sell these people on like the annual 101 Etc um I think there's like a little bit differentiation of the Avatar right so like do you think later like it's okay to start the second group where only these more serious people will be there like let's say only people that make let's say 10K month that want to grow

9:14 and at what point like when you literally can do what I want at all or like you can and it's just a limiting belief I I go back and forth on this on one hand if you pull out like the best success story people then that can kind of kill the original group um also I'll bet you part of the reason that people upsell is because they see the people in that community and so unless I have like some major issue like no like those people stop engaging in the group because it's like if they stop engaging in the community because it's like they don't want to associate with those people that would be where you would make it because now you're not losing anything but if they're all hyper engaged there then I would say keep them there because that that intermingling is what's also facilitating upsells that's that's amazing go thank you so much you really changed my life cool you Kirby everyone appreciate you a

9:59 lot yeah thank you so much no you back congrats man