# 7 Millionaires Asked Me How to Get Rich(er)

## Метаданные

- **Канал:** Alex Hormozi
- **YouTube:** https://www.youtube.com/watch?v=bgBIO6nZawg
- **Дата:** 14.06.2024
- **Длительность:** 35:55
- **Просмотры:** 180,670
- **Источник:** https://ekstraktznaniy.ru/video/16402

## Описание

Download your free scaling roadmap here: https://www.acquisition.com/roadmap-yta352
The easiest business I can help you start (free trial): https://www.skool.com/hormozi
Business owners: Want to scale faster? We provide in-person advisory for companies doing at least $1M per year: https://www.acquisition.com/workshop-yta352

If you're new to my channel, my name is Alex Hormozi. I'm the founder and managing partner of Acquisition.com. It's a family office, which is just a formal way of saying we invest our own money into companies. Our 10 portfolio companies bring in over $250,000,000+ per year. Our ownership stake varies between 20% and 100% of them. Given this is a YT channel, and anyone can claim anything, I'll give you some stuff you can google to verify below.

How I got here…

21: Graduated Vanderbilt in 3 years Magna Cum Laude, and took a fancy consulting job.
23 yrs old: Left my fancy consulting job to start a business (a gym).
24 yrs old: Opened 5 gym locations.
26 yrs old: Clo

## Транскрипт

### Segment 1 (00:00 - 05:00) []

everybody in this room is making between $1 million per year and $12 we just talked for the last 60 Minutes on how to scale their business enjoy all right so you got neuropathy um you're doing 5 million year what's the model uh done for you scheduling okay Le okay is it local neuropathy stuff yeah so diabetic dinners and all that jazz dinners and yeah familiar with the model okay um so then what's the what's the big play uh our we're niched pretty well like I think we're probably the biggest in our Niche um it's a smaller group meaning like there's maybe 2,000 doctors that do neuropathy specifically um so and we have 160 of them so it's not we're still there's still huge potential for us to I think we get 300 or 500 or th000 maybe I don't know what's the Ang go for you um I'm just cash okay yeah no I asked because it's like is it to build it to sell it is it to have yeah I mean I think selling would be cool it has to it have to go to different verticals I mean I'm like I'm way too risky on the checklist oh not necessarily I mean cuz the thing is like the ultimate version of the model that you have is like you've got 160 out of like 2,000 neuropathy clinics right so you've got like pretty decent you know you got whatever that is 8% um of that like pseudo of like niche of a in Market but those guys make how much these guys make a year like um uh between a million and 5 million right and so this is where this gets like way more interesting in my opinion so it's like you've got 320 million year I'm just using an average right per year that you're driving in revenue and it's like man I'm making five I'm like this sucks right of that you're like how can I get more of that um and so the thing is like I think the ultimate version for like the quote info and agency space that I know those are different things but fundamentally they serve Niche avatars that are B2B um the ultimate version of those businesses is rollups of the customers you serve because if you think about what like a rollup does I don't how familiar you are with it but like you get everyone on the same marketing price points you get everyone on the same packages you get basically you consolidate what everyone's operations are and that's what the majority of super Niche agencies and kind of in info Consulting whatever you want to call it do with businesses so they do all the heavy work of integration for what a rollup would do and then they just say like okay I'll stop there I just won't like actually push it over the edge and monetize the whole thing um and so like most of the Physicians that I know hate being Physicians they do it purely to make money and want to be out of it as soon as possible and so like selling them on the idea that like okay your practice does you whatever 2 and a half million a year of Topline and whatever 1 million in profit uh that's awesome and then you have your you know taxes that you're taking home 600k year after that like that's great but what if and on your own this thing could maybe sell for I don't know 3 million bucks maybe like maybe if you're really you know we're being really generous but if you were part of a group of Physicians that were a neuropathy you know thing Nationwide uh we could probably sell for like your thing 10 million and so all I'm asking for is a you know 20 to 30% slice of that but times 160 and so obviously of the 160 you wouldn't do with all of them I mean if you did that would be a monster deal but like if you could get like 10 or 20 of them to roll together because they all probably do have enough like enough profit together to be meaningful so it's like if you get the roll up to be like1 to $20 million in terms of profit that would be a meaningful exit that would be probably like a 100 to $200 million exit and you have 20 to 30% of that but then after that point you're now the guy who did that and so then your whole reputation changes your Dynamic changes around pricing you're a long-term stick all of that kind of stuff changes because it's like oh I'm the guy that can get you to hear and that's also the like get rich know if you don't have to do this again which is a much more compelling offer can I ask you a side question you guys uh when you switch to licensing so I remember I know o OG flying around and then more less OG they were flying around for you and then more recent them doing it for themselves right and I gave them the ads that we test yeah right so the transition for you from doing it for them to doing it to then doing it themselves and you being a coach does that I would never use that word but yeah does that work do you

### Segment 2 (05:00 - 10:00) [5:00]

think that looking back would you have done it that exact same way would you have switched to the licensing model and like and is that what you're calling licensing joke I mean because like we had ads that we would test every month and then we would just let everybody else use them and tons of people tried to use them that weren't are because they would copy the gyms that we had ads and they'd like I'd have ads gyms using my face to run ads for their gym it happened all the time so um would I do the model we had again yes the reason that we didn't do done for you was two things one is or like the reason do it yourself for your avatar doesn't work is that they make too much money yeah a gym owner the value of learning the skill exceeds their current skill it makes more sense for somebody who makes $35,000 a year to learn how to Market and sell than somebody who makes a million dollar here to learn how to Market and sell they've already leveled out of that in terms of like because they can pay somebody less than they make to do this for them whereas the gym owner can't it makes sense for them to learn that skill and then from the reason I didn't do a rollup is because group based service uh there's zero market for it no one wants to buy them if I had been in a market where people were buying for like for sure I would be I would that would have been the model I would do beautiful yeah out of respect for I'm going to rock and roll does that make sense sweet yeah so we do permanent holiday lighting that's R off a Smartphone um on homes and businesses um my question I guess would be or I guess our constraints we have no Revenue retention um and so we've dabbled with you know maybe doing like a maintenance plan you know where we upsell people things like that um or you know having paid subscriptions in our app but so who's your customer most of the time uh it's kind of a it's a healthy split between like elderly and then like people want to keep up with the Jes okay and so the light so tell me more about like tell me more a little bit more about the product is have a better understanding of it yeah so basically um we install an aluminum track system into their existing soft and it's got LEDs and so you can do any holiday game day accent lighting it's all right that is that like the Philips hu type deal I don't want to like oversimplify what you're saying I just want to make sure I understand it it's kind of like that it's much bigger cooler what's the average ticket uh about 5,000 okay how do you get customers um through Facebook and I guess met ads but ads you didn't paid ads in your local yeah okay got it how many locations just one okay one location what are margins um we're about 60% depends on the season um so you make a million bucks you keep 600 no well we checked about 51 okay great you're doing half awesome what's CAC um 300 bucks for 5,000 LTV that's great okay so um so a couple things so if you want to get Revenue retention um you want to measure how long you've been in business so I've been with the company for a year okay about two years first year was just you know vetting products out and stuff got it but do you own it yeah okay got it okay you said been with the company so I was like I don't know what that means I've been with the acquisition. comom as well um okay so uh so again we're thinking about this from a revenue retention perspective um one is there so you install this thing for the lighting um what else do those people want like is there anything else you can add on top of it because like you have to Keeping Up With the Jones I'm sure that during certain Seasons they want to do other razzled Dazzle things and so like you can assemble and then disassemble things multiple times a year uh for seasons for Super Bowls for things like that I don't know if that's too different from the type of lighting that you currently do but like it's not too different now I get people asking all the time if we'll do their trees or if we'll do you know other stuff that's not permanent yeah so I would see the impermanent lighting as like you run two to three seasonal campaigns a year so I'll bet you Easter would be one if you're in Utah I'm sure that'll be big Christmas will obviously be big in Utah um and then you know pick your third date maybe Halloween's not as big in Utah um I don't know I'm just messing around um but even if you had you know one or two cracks at the Apple um whatever bites of the Apple uh every year on top of that keeps you top of mind and then like when you go there you're like hey we also do it like we'll do standard double check is everything working okay with the lights it gives you UPS opportunities but you still like generate other revenue and then when they want to replace it's like hey did I tell you about the new lights cuz these ones are old now the new ones are oh my God let me tell you let me show this thing on my phone I did for your neighbor Susan down the road hers looks sick didn't know if you're interested in that um so it's like those become UPS opportunities and instead of saying like it's um recurring it becomes reoccurring so it's slightly different so like Coca-Cola has no recurring basically no recurring members uh member like memberships but we buy Coca-Cola

### Segment 3 (10:00 - 15:00) [10:00]

products all the time so we have reoccurring it's reliable Revenue it's just not on a membership or a subscription and so basically all you'd have to demonstrate to make the the company a lot more valuable is Simply Having the data to track that we sell a customer for lights and we sell one out of two another thing every year whether that's an upgrade a maintenance fix or it's lights that we do for Seasons like if we can just show that half the people continue to buy something from US every year that's still makes it a very valuable business does that make sense that would be it so my name is Cameron uh we do Residential real estate flipping in the state of Missouri uh we did 15 million Revenue last year for 3. 7 um gross before overhead so 2. 5 after you take into account our team 15 meaning like the how much the houses were when you sold them and then the three we sold $15 million yeah it was like house sale price the profit on each project was 3. 7 which is it helps us tell how well we're doing on the projects and then you take out our team and you end up with 2. 5 like evida I guess sure um I was trying to think of the constraint all week you know uh zero Revenue retention got highlighted in the thing but for us I think it's going to be that I would we've kind of captured the market we can capture which for what we do is a driving radius like we've I would say dominated Within 4 hours of where we're at which is like you drive 4 hours to a house to evaluate it and 4 hours back your day is gone um so we're kind of at a push or pivot moment of like do we do no advertising it's 95% foreclosures and then like a few word of mouth so do we pivot would you say to the rest of Missouri like almost franchise out like get four little like find other big cities and try to get the rest of Missouri there's probably like four quadrants or would you go into marketing cuz I know I mean doing 95% foreclosures it's like we don't control our income of properties whatsoever and we kind of have like that one funnel and like if we're clo like if the economy gets good then you have no deal flow kind of exactly and constant through Co foreclosing was literally illegal in Missouri and we made 2. 7 that year so somehow we made it happen like you said it's just a lot freaking harder but there's ways um so I don't know if it's a push or a pivot I would say that's our main con there's things we can improve on but that's like the one that keeps us up at night right now let me just say what's the goal we have a mission statement and it's to uh make sure that all houses within our reach are at their highest and best value because we don't see a house falling off the market as a good thing that just makes other real estate more expensive um I know the goal is not necessarily to ever sell so it would probably be to expand I guess okay so you know path one is you just go to another city and I wouldn't necessarily call it franchising you just expand it's just like opening another lighting thing like that's you just that's just the normal way of things like if you just get better and better at it you open another location um I see that as another set of skills for you which I think will be valuable um and you could and this time like if it's basically there's no point I mean you could go in Missouri but you could also do any other Market that you'd want because if you're going past 4 hours of driving now you're in like flying range in which case pick the right City you know like pick whatever City you want to go to um you'll also go into a city that's going to probably have competitors you know what I mean which I see is a good thing um because it means like the more competitors there are the more of a market there is um as long as you're you know number one then more for you um and so that's high I that's at least my perceptive perception like whenever people like oh there's a ton of competition in my market I'm like that's awesome it means there's tons of buyers um and so just side note there but um cuz the alternative of this is like literally changing the entirety of your business exactly which I would I would like you're doing well with it how long you been doing this uh I've been doing it for eight years yeah dude you've already paid down like all the ignorance Deb so like you're at this point you're like here on your curve like you're like right here and so it's like well don't jump back down to like here again right don't go there um like there's an ultimate version of this and so what's the who's the biggest uh wholesaler in the nation the biggest Wholesale in the nation uh is it We Buy Ugly Houses probably I mean there's a lot of me okay so what do they do that you don't do um a lot of advertising a ton of advertising pay for click uh mailers is huge Billboards we do none of that so I'll bet that there's still way more deals even probably even Within your current market I think so and so I would

### Segment 4 (15:00 - 20:00) [15:00]

probably if I were you so either you have to replicate what you're currently doing in a new market but you have some of the risks that you've already brought up which is like you're all inbound based on foreclosures you have some of these other things you're not like the income is not necessarily reliable um I would definitely learn the advertising stuff for your own business cuz like whenever there's an ultimate version of the business that I'm currently in it's like they already did it and so now all I have to do is do it better than them and whoever bu that business is already gone probably and so it's just a bunch of Suits who don't know how this business works and so it's just right for us to just murder them I'm just being super honest like this is how I see it um and so I think I would just like go 100% try and pants them um and do PBC like and like also do some of the stuff they're probably not doing well they probably aren't doing social running like not as well as they could obviously their Billboards I know the Billboards that they run um and but I'll bet you they've got great sales training and I'll bet you've got they've got Great Floors of people and kind of infrastructure in place and so I would look at that their overarching model as well because I'll bet you they get a piece on the back end as well like because they probably vertically integrated as much as they possibly could um within the business that they actually make more on every deal than you do so they can spend more on every deal like they can pay more like so they have ways to beat other people in all these different markets cuz they're National right exactly and so step one would be start advertising more because then they'll just immediately make more within your current market like that would just that might double your business if you just did that um and then number two is I would analyze the living hell out of them like that's what I would do and then think about like okay this is the future version of my business one can I replicate it two is there anything I can do to make it better 100% I definitely wouldn't change my business for sure I think that I think your advice is dead on it's just what I'm afraid to do cuz I don't know how to do it it's like I'll just go do in different cities but I guess I got to learn new things darn right yeah maybe we can help up Alex um so I'm Joel I have a CPA firm uh based out of Baker School California but during Co we went virtual so now we serve all 50 states um I have a lot of constraints uh but I think you know my questions would be you know how do you prioritize what's revenue is last year was 2. 5 this year is probably going to be about three awesome uh margins last year 900,000 this year net was the part going to be about 1. 1 um awesome I don't know that's good but I mean you're running 30% margins on a I mean yeah sou expensive labor um so I mean I guess my question is yeah but it's a super reliable business it's a viable business like accounting firms get rolled up left and right there's tons of buyer activity there like it's very people don't turn out of their accounts I mean it's like it's very sticky there's High LTV the issue with accounting is most of the times um there's no one in there who knows how to Market and sell that's usually the issue with accounting businesses it's like all word of mouth and no one knows how to like Market yeah and then the other issue is getting good accountants because there's so much Demand right for decent accountants and so but like the accounting firms that I know of like all have like anybody who comes here with accounting firm almost always makes money they're all doing well um so there's big demand yeah for sure so what's the issue um I guess one would be operations um just making sure our clients are satisfied like we have a short period of time to do all of our work mostly during tax season right so we get clients have certain expectations getting their tax returns down and we at capacity but then you know obviously they don't want to pay a premium sometimes so I think we need to improve our sales process to make sure that we can charge a premium to give them that value that they're expecting so do you mostly have one time a year customers or no it's usually we charge quarterly okay uh for quity tax planning uhhuh is it more businesses or more individuals businesses oh great okay well that's I mean even better yeah so yeah our I mean our minimum fee right now is 1950 a quarter okay uh what's your annual stick what do you mean by that uh what's your Revenue turn annually it's not as good as I like it to be i' probably say we keep have you 70% okay you probably want yeah you want to get over 80 I mean for accounting firms like you probably can do a little better yeah so I think it has to do with just also making sure the clients see the value because after we give them like certain Tax Strategies they're kind of like oh I kind of learned this now I can find a cheaper accountant sometimes so even though there is that stickiness you know they especially some business owners will be like oh I kind of sell the value what you guys did last I I'm not sure I buy that I think what someone says on the exit versus why they actually can aren't necessarily the same thing um cuz like I already got the

### Segment 5 (20:00 - 25:00) [20:00]

value is like literally what everyone says when they want to leave anything and it's just cuz like they just want to leave um because I mean I what you want is I mean fundamentally from an accountant you want somebody who will get you to pay as few tax as humanly possible and keep you out of jail and that's pretty much the that's the task yeah and um make it as little work for you as humanly possible for that to occur right and so I mean just me having been a consumer of many different accounting firms and accountants and employees who were you know who did that stuff for us um I don't buy the like we taught them the two or three tricks yeah um also I bet you a bunch of your business owners aren't even like close to it some of them are bigger and like aren't they're just like yeah just pay the bill I don't really care just make sure it's right so I would bet that you probably have bad onboarding okay so basically the expect basically the Delta between what they're sold and then what their experience is in the first handful of days and weeks going into it and then the communication Cadence between touch bases they probably see limited value there and so I think um I would give you the same kind of like if I were to like buy 100% of your business tomorrow I would audit the sales process to handoff like I would bet you there's a massive amount of opportunity there in terms of like how can we take more notes on every customer because the I get pissed off if I feel like I'm talking to somebody they don't know much about my business and I'm paying them $8,000 year my taxes right immediately I'd be like oh yeah [ __ ] you like I know you can't be looking at like I can just do back of napkin brain math of like if you barely know who I am you definitely don't know how to save me money on my taxes right and we do have an onboarding process but there might be a disconnect between the sales well we already know there's a disconnect cuz you said there was so this is me trying to help so I would go really deep on the onboarding process which is like how can I really tighten this up both in terms of the personalization of the communication and how can I speed up the number of times you communicate with them because you want frequent communication as long as like it's pushed so it's not me asking for [ __ ] you know CU then I [ __ ] hate you right like if you ask me for St but if it's like hey uh just letting you know we ran this today this thing is moving forward everything's good nothing for you just keep you in the loop and then two days later hey we also ran this thing um XYZ is done and it's moving forward to the next step I'd be like oh [ __ ] they're doing stuff and so like I tell this to everybody but no one does it and so this is me telling you and hopefully you will do it but like if you do a hundred things you want to let them know every time you're doing one of those things on their behalf and they're like dude these guys are working for me all the time like this guy works his ass off and then someone else is like well they're doing it for 8,000 I'll do it for six and they're you're like oh no these guys work their asses off for me like I'm sure I'm safe like no one actually knows it's kind of like when the guy comes to your house like especially the nicer the neighborhood you live in you know this like he's like think I could do the lighting for 10 grand I'm like dud you think I got this house because I let people rip me off I was like give me the r price and then it's like all right I can do it for four and you're like great you know or whatever and so the thing is like no one really knows they just gut call on the fact that like my communication with this company's been crappy the expectations are poor and so if this is my external experience I'll bet you they're not crossing their tees and dotting their eyes on my taxes that would be my guess right and so I think if you get all of the other stuff tight they will just get yes that your internal stuff's as tight which I hope it is um and I'll bet you that'll keep the stick honestly and of course accountants don't know how to deal with customers so I bet you probably need to train them again on that communication Cadence so it's basically way more personalized way more frequent uh communication and then probably very tight training on how to have touchpoint calls with the customers right that makes or clients whatever for sure that' be like the number one thing I would do I wouldn't even do anything else I mean do you think it's scalable too cuz I mean my biggest yes accounting firms are scalable ey KPMG like yes they're scalable price yeah PWC think those are publicly trading accounting firms yes they're scalable what do you think about like one of the thing you mentioned I think yes yesterday was like you know the size of the brain the biggest brain is as big as you know so I I'm starting to now hire people that are smarter than me in other areas like uh but when it comes to accounting I'm still like the smartest person in the room yeah there's smarter accountants I don't say this a slight I just say like look at the guys that keep like they're some smart dudes yeah I mean I kind of want to hire like cuz I'm more of a CEO than I am a tax nerd yeah so I rather hire like yeah go get a tax nerd yeah you go recruit somebody from one of those companies who's like I need somebody who worked at Enron who wasn't a bad guy you know what I mean and figure out like who can do like the real the crazy stuff who knows the tax like who reads tax law for fun yeah like that's who you need cuz there are dudes who do who are like oh curled up on like I know a buddy of mine who literally

### Segment 6 (25:00 - 30:00) [25:00]

goes to the pool with the tax law his kids are in the pool and he's reading it and I'm like what is wrong with you he's like I just love this stuff and I was like I'm glad someone does you know like and he's like look at this hole he's like oh I'm going to crush this one and he's like this is legal it's like he just like loves it's like for him is like treasure hunting so like you need somebody who's like that and if that's not you then you should have somebody who is that way yeah for sure so yes I agree and I think you should do that I would say step one though fix all the outside stuff step two go get that guy cuz that stuff will make you more money today with what you already have than do the other thing right so newer SAS company we help inbound sales teams improve their or eliminate no shows improve their sales off and self efficiency um I really think the most helpful thing for me would be just you running through um really the major learning lessons you had from Allen in terms of red plaque my background is high tiet education and for that whole stay so I think I'm kind of coming into it you know do you have his technical co-founder I do okay how good is he I spent 18 months fighting so okay he's pretty good well that could mean that it just took you really long to find somebody who's bad so like um two years from now you're like I should have know yeah um so it really comes down to like has this person built a solare company before yeah Okay cool so fundamentally like the entire game's different than the High tiet game right like it's all about Revenue retention it's all about word of mouth it's a product business there's actually a podcast I just made I don't even know when it's coming out about this but like what business are you really in and so like when I got into Allen I thought I was in the marketing and sales business because that was the business that I came from but you're actually in the product business so it has to be basically like taking to its natural extreme if people don't stick with it doesn't matter so basically marketing and doing everything else like it's irrelevant right and so like unless that's right nothing else matters basically and so Marketing sales in the front end literally only serves the purpose of making the product better until there's a point where it has what I would consider passive growth where it grows on its own and then you gas the living hell out of it and then that's what makes gazillion doll companies like if you want low turn you either have to go up market and find the people who don't turn out or you have to help create the people who don't turn so like the Shopify and the Spotify a lot of IFI here um there's going to be there's cohort churn which you're probably familiar with if you're co-founders in this so like you're going to have periods of time where it's like okay the first six months we turn out [ __ ] 80% of our customers but the 20% after that point our retention curve is flat and so you just have to figure out once you get to that data cohort you're like okay what do these people look like and then you readjust the messaging readjust uh the marketing so you can get more and more of those people so you get a bigger and bigger slice of them and funly that Loop is what will you more or less focus on um and then I think about it from when I'm trying to reverse engineer the customer Avatar it's like you have psychographics like what do they believe you have demographics what do they look like where are they from you have Geographics or where are they um and then you have kind of activities which is like what did they do so if I'm trying to reverse engineer what the people who spend the most money with me look like I look through those lenses who are they where are they from what do they believe what do they do and then I try and say in my ads hey I'm looking for people who believe these things I look in the places that they're at um and then once they're in I try and get them to do the same things that the people who were successful who look like them who talk like them who believe like them did in order to be successful so like in the beginning you just do a ton of marketing to get Traction in the door and that's literally just so you can like see if people like it see where they're turning out see get basically you just want feedback and then once you find what people are liking what they're successful with obviously iterate from a product perspective on the road map to do more of the stuff that core in terms of value but then the marketing side it Loops back and then that's what informs who you're picking on the front end who you're marketing to right so you being much more specific form and totally call the people to STI yes and the hard part is that your sales team won't want to do it and you will not want to say no to money yeah but I understand a company persp for the Mak cool but that's I mean fundamentally like if you good Vista um I became friendly acquaintances with their head of pricing and packaging and he was just like if you don't do you know vist is so they're out of aost in100 billion dollar private Equity they're they'd be like the fifth biggest company like whatever they're massive um and they only they're private Equity they and they buy software companies and they triple them in in three years which is their goal and they flip them and so um the founder I can't remember his name now I feel bad um is uh anyways rich I'll just put that way um point being I

### Segment 7 (30:00 - 35:00) [30:00]

was talking to the head of packaging and he said you want to know our whole secret and I was like what man he's like we just know our quired companies's customers better than they do I was like what do you mean he's like so we go into the data room and we look at all the customers they have what channels they came from we look at who they are how they act all that stuff he's like then we turn off all the marketing that's not those customers and we crank the living hell out of the stuff that is that and we do nothing else on the company Tres obviously it's more than that but fun like big picture strategy that's what they do we get more the people who spend the most money but people just aren't disciplined and that's why people just stay poor because then they try and serve too many people too many different avatars they can't say not of money today so they don't get the big money tomorrow cool appreciate than you hi I'm AR Alex uh DTC fishion brand Commerce Indonesia from Indonesia doing $10 million a year addit that $3 million been doing this nine years awesome uh thanks for making it out thank you how do I know when to expand new product line what are you selling now what do you sell now t-shirt shirt pants Jeans jacket but mostly man were is it white label or a brand say it again is it your brand or is it my BR your brand I manufactur I I'm not manufacturer I suck con to the other Factory in India and then I only own the office and the warehouse is it custom do you design it or you just slap your leg you design it knock off no that's fine I mean like hey I'm I'm not I don't dud competition's competition um as long as you're not hacking their databases or anything like that's I mean that's the nature of the retail business I understand it um okay so the question that you have is how do you scale it or basically how do you add more to expand new product line let's say Woman's let's say sports o because I'm doing casual only let's say formal um I don't think at 10 million you need to like you could do so much more even within that that demographic like if you're just mostly men's wear like there's tons of massive Men's Wear companies can I add to that yeah add yeah I'm thinking about that also because I haven't achieved 200 or $300 million yet isn't it will make my brand to man were letter in life so I'm not building enough Foundation to capture the woman's letter in$ 300 $500 million mon 500 million a month that would be a lot um it's a tough call man I'll be honest with you because like on one level I mean if you're like I want to build the next Nike then yeah you're going to have to sell to everybody but even Nike doesn't sell suits right just like there's so like there's so many people who buy so much clothing um and I mean I think so right now I think you're a little bit of like a brand identity spot like you obviously know how to convert I'm guessing are you running ads yeah right so you know like you know that game and you run really good margins I'm sure on the products based on and you can you know how to run ads at scale and so what I think right now is you have to figure out who you want to become as a brand so if you like Men's Wear then like you can be I think you can build a massive Men's Work company just being real I mean just being really transparent with you like you can U build a massive vsware company also like Lou Lemon doesn't do I guess they have like pants that are nice but like they're all sportswar so like I mean lemon's a terrible example now because they're just gone to crap but like um like if you look at these I like I just as a framework for everybody like I look at what's the biggest version of the business that's currently here like what did they do to get there what does their business model look like and then how many steps between where I'm at and where they are do I need to take and like what lessons or what skills am I deficient in and then it's like okay well then those skill deficiencies become the opportunity like fundamentally that's it and what their brand looks like and how they monetize like are they vertically integrated or like if I was getting into the energy drink business I'd be like okay well Red Bull has outsourced literally everything besides marketing so I guess that might be the most important thing for a consumer packaged good that's you know rtds ready to drink and distribution so it's like they have massive brand plays massive distribution you know they have their recipe underlock and key and everything else is so like basically I would look at the brand like is there a brand that you want to emulate uh basically I'm what problem are with uh am I solving is just a billion dollar exit building consulting firm and then that is a lid magnet to PE build media and then control the Indonesia okay so my goal just I'll a billion liquid cast Okay well let's take so right now we sell clothes so let's a couple I get it I

### Segment 8 (35:00 - 35:00) [35:00]

appreciate that so I want to increase the like that you get there so I think like you can make this thing very valuable without doing all of the other stuff that you were talking about so I think like you absolutely can do this and then think okay why can't I get this to $100 million a year selling men's Weare like why can't I and I think that way then it's like okay is there a brand person who can endorse this like if you look at the big retail Brands they have big endorsers who stand next to the product that increases conversion increases the premium you can charge and so instead of knocking off Zara you just become a brand and I think honestly I think that's the gap for you like you're obviously very good at the Arbitrage of media to clicks and whatnot but like I think you need to go from that to building a brand and then that's what will make it sellable so this is what I like that's the tldr of our conversation is that's what makes your thing valuable is you need to build a brand