I have now the distinct pleasure of doing lots of Q&As for businesses.
Selling to rich investors and entrepreneurs who are trying to avoid taxes.
You do $6 million in revenue.
You would like to be $24 million in revenue.
And what's stopping you is that you're 68 of your revenue, despite the fact that you have seven agents.
Yes.
Okay, cool.
So why can't we do more?
So each issue of seven agents that now do 2 billion in aggregate.
Are they unskilled?
No, it's in the industry average.
Two of them are quite young and good for that age.
So they've done a few hundred thousand dollars each.
One's 21, one's 23.
So for their age.
Okay.
So let's just skip here and say that.
You have enough human beings in your market who could do this.
You have metrics for their funnel process.
To be honest, I've just been designing the system.
So you're good with your bottle, right?
Can you afford to have good margins in your 6 million?
So we can skip money.
Yeah, we have about 4 million now.
Cool.
Fantastic.
And that's tax-free, by the way.
Manpower is the issue.
There's one unique issue in my market, which was... So it's manpower is the issue.
Why can't we do more?
So what's the unique thing about your market?
Yeah, so in the UAE... You're going to get smashed, I'm just kidding.
You need the office before you can hire the person.
You can't hold this because everyone needs a visa.
So you actually have to make a big leap, take the office for 40 people and sign up.
The office that we're negotiating at the moment in dollars, like 350,000 plus per year.
So yeah, we're negotiating 4 million profit.
But you can make 3.6 and then have all the scaling opportunity.
We're negotiating in the office now.
10% of your profit reinvested in growth?
Yes.
Okay, so what's the issue?
Hiring the talent, I guess, because I'm so much.
So that's not the problem anymore.
So we nicked that.
It's lower risk.
Thanks for being a support, by the way.
I've had a good year.
Well, not that good.
You've got to scale.
So your market's obviously not an issue.
Yeah, market's so good.
Okay, so let's take out your four.
Two million is what it is.
And so seven people equals $2 million.
So let's say $300,000 per person, just using rough math.
So if you want to get to 24 million, you need 80 reps.
Yeah.
Okay, cool.
So you need, whatever, 73 more reps than you currently do.
What are you doing right now to acquire agents?
Yeah, not much.
Like nothing, to be honest.
Yeah, nothing.
Well, that explains the Yeah.
We've only got four desk space left, so we're in this like Dude.
I'm so past this.
So I'll give you this for everybody.
There are some negotiations that I have made in my life that were so dumb.
In retrospect you can put it differently.
If you were going to get office space, for sure if you want your goal, right?
The difference in cost of office space between this space and a better negotiated space for the same space, or this space and yet another office A at a good price, or office A at a mediocre price versus office B.
Whatever the dump to there is, you negotiate to 300000 a year.
So you save 50 pounds.
Who gives a shit?
Sell a house, whatever.
The point is that let's say it takes you extra time.
You make $500,000 a month right now.
So what's that?
That's two and a half days of work is generated.
You can generate the difference in two and a half days.
If it takes you a month extra to try and nickel down, who cares?
You have the one you're doing right now.
We had to submit a planning application.
Basically, we're waiting on that and then we're done.
The price is negotiated.
It is negotiated.
I mean, we're trying to get approval from the government to change it.
Okay.
But you're going to do the space.
We're going to have desks.
You have four desks open right now.
Yeah.
Okay, so that's like 50% growth.
So why not more?
I guess I'm up.
I don't take the time to train people as much as I should, so I need to hire that out, because I'm at a lot less low risk for me and better for me to keep billing what I'm billing.
So I need to hire the person that does the hiring.
I'll softly push back.
I'm not against it.
This is more just figuring this out.
At some point, your identity will have to shift from sales guard to sales training guard.
And it'll be about not how good I am at closing, but how good I can make anyone at closing.
And so fundamentally, you do behaviors.
You do a big laundry list of behaviors that you do.
And you being really clear about what those are.
And this is what's tough with winners in general is that a lot of people don't know why they win.
Michael Jordan, way better player than coach.
But there are things that you do that if we codify those things we can get somebody else to do those things.
And if we do that, then they'll sell more and make you money.
Right now, you can out-earn anyone.
You will not be able to, in the business you want to build, out-earn everyone.
And so the sooner you can bridge that gap, the sooner you'll start building the business you ultimately want.
Now, I'm sure on some level, your ego's tied to how much money you made.
But like, big game. right, no one cares what you make.
They're gonna care that you built an infrastructure that has 80 guys or 100 guys.
That's knocking 30 million a year on and you're four right.
And I'll say this I think you keeping your chops being the aspirational person I think there's elements of that, especially in the space you're in makes sense.
I think that if you were to say right now, 25 of your time, so you lose a million dollars a year, I'm saying roughly You hard block for reinvesting in the team.
You will get disproportionate returns.
You will make more than a million dollars back, giving each of those other guys an extra one deal a year.
Yeah.
It's also like I do all the content, so all of that needs organics.
Yeah.
So the time is, yeah.
So it's all set.
Okay.
So back to this, what do you have to do to get...
Your entire marketing, you are in the hiring and training business, ironically.
That's the business you're in.
He's our president here at BZQ.
He was the former president of Real Brokerage.
They're super familiar with this space.
Put all this time to it.
Hiring and training, all recruiting.
All they did was recruit agents and so he knew that they had a system.
If you work through our system and you have our resources, you're going to sell next x houses per year period.
So once you know that input output, it's just like how many people can we put through this black box?
Right now you don't have the black box because it's up here.
So as we come to the process now we get to document successful sales and each step and then try Is he gonna walk you through the process of selling your house before?
No, okay, this is called the game plan.
Let's walk you, blah, blah, blah, whatever.
You have to script all this stuff out.
Anything someone says to a customer should be scripted.
I think you actually can get to 24 million dollars a year.
You could totally do it in 24 months if you shift your perspective from sales god to sales training god, or sales recruiting god.
Right?
To take that leap when the new office is done, you start trying to take it now.
And I think that long-term, the business that you want to ultimately build is going to be one where agents that are already good, that are already doing 1 million, 2 million, 3 million, are attracted to a brand because it's big enough that you can start feeding them weeds.
And then you don't have to start taking these people from zero to hero.
You can just take heroes and make them superheroes.
Of course, we have to build a brand.
But going from seven to call it 20 or 30 and then this firm going to call it, you know that'd be like 12-ish, maybe 15 million a year that you'd be doing.
And you're doing a million a month plus, right?
You can actually reinvest a portion of those profits into consistently reinforcing your brand.
The long term, your big brand should attract talent and reinforce high status so that people would rather be with you and get mentorship and help from you for their careers.
Make your girl feel nice.
Alex, you probably didn't know this, but I'm your long-lost Chinese cousin from Australia.
I believe you.
My name is Max.
I take your mission very seriously.
Within 24 hours of your book launch a month ago, I was so excited.
I had eight shots of coffee, and I saw the light that morning.
I started a school community called The Mighty School inspired.
I had 75 members joined within the first week, charging 1000 each.
Lifetime, monthly, one time?
I'm doing a funding member stage, so it's once-off-for-life, and then we do $1,000.
Okay, got it.
I've got two questions.
The first one is I really want to reach the 1 million monthly rep target on school as soon as I can.
What do I need to do?
Right now you're at 75K total.
Yes.
Okay, so...
What did you do to get your first set of customers?
I have a book.
I have about 20,000 subscribers, and I summarized your three books in Chinese.
And what am I doing?
If you're like, write another book, I'll send you some money.
What is the consistent value that you provide the people in the community?
So I've done this for many years, and I've made... I'm not summarizing your book.
Okay.
He's like, I take your content.
I take your content.
I've been a small-time KOL in Australia for the Chinese community, K Opinion Leaders on YouTube.
I have a group of audience who listen to my YouTube content.
Who's the audience?
Overseas Chinese entrepreneurs who are studying and making some money.
Okay, got it.
So the thing with membership, who here has a program in your business?
I'm going to go a little deeper on this because it's probably valuable for a handful of you.
In order to make a recurring revenue business actually recurring.
One of the big mistakes in the education business, which is the way you're in right now, is that people will take something that is inherently valuable and try to bill for it like it's consumable.
So education has super high one-time value, right?
The day before you know how to advertise, advertising is unbelievably valuable.
The day after you know how to advertise, why would I pay for something I already know how to do?
It goes from huge to zero.
That is the problem with education in general.
Everybody who has an education business wants to build continuity.
Continuity is very hard to build if you purely have education as the primary value proposition.
In a school community or any kind of recurring revenue business.
You need to create, or at least demonstrate, consumable value.
I'll give you a couple examples of this.
So there is a super low churn community that does 3d printing in school.
What they do is they find the hottest trending items and then they create the 3d blueprint.
I don't know how this stuff works, but like what a 3d blueprints.
And then every week they upload those blueprints to their community.
And so, because it's trending, it's new, it's consumable.
You consume this week's things and next week's the trends are different, right?
News, in and of itself, is consumable.
Last week's news is no longer valuable.
This week's news is which is why new subscriptions do work right.
Different example, there was a real estate business that did wholesaling.
They would find all the hot deals in an area, pre-vet them, do their calculation and say these are all the hot lists.
And so every week, every local market, people in their community would see the building, and if they liked it, they already knew it was pre-vetted.
So that creates this consistent thing that gets consumed.
And then next week there'll be new deals and some of those deals are gone.
Like Gym Launch, we made new ads that we tested every single month that we would then give to the gym owners.
So rather than them spending money wasting money on production and testing ads that don't work, we would pre-film test and hand them only the winners.
They would just take winning ads and run them.
But what do you need next month?
More winning ads.
And so that's what gave Gym Launch the super high margins that it had and kept it sticky because it was media functionally rather than quote education.
And so we sold the box which is like this is the gym launch system.
This is how you run the gym.
This is the price point, the sales process.
Once you know the sales process, you know the scripting of the bundles, you have the white label stuff, you got it.
It's zero value now.
So what we do is we want to sell like if you have inputs and you've got a black box and then you've got output being money right,
This is your one-time thing that's very valuable, but you can only charge for it once.
This is much smaller, but you charge for it on a recurring basis.
You sell the inputs to the machine.
So with your business, You will probably have to niche down, which is why niching is so valuable, because you can actually create the machine and then sell the inputs.
I couldn't make ads for 100 different businesses because they're all different.
I can't test 100 different businesses.
If you have a super new or beginner network, you choose to have one, two or three different business models that would work and then you sell the inputs the same way.
If you have medium and larger business owners, it has to be about something different, which is probably going to be network.
It's going to be access, group negotiated discounts that you can do on behalf of everyone.
And that is going to be valued much less than something that's one time that's going to immediately make them more.
Sometimes I think this is where a lot of entrepreneurs make mistakes is that there needs to be a very big discrepancy between what you charge that one time versus the true willingness to pay for the small recurring revenue component of the business.
That's okay, provided it's sticky, right?
Because if you charge 10000 upfront and then 500 a month after that, it probably would be relatively sticky if someone's willing to pay 10 and it's 500 a month.
As long as the 500 a month is still like 10000 buys you some time, but as long as the ongoing value surpasses the five, usually by three or four X, Then you're good to go.
So I would really just back into, how can I provide value to all these people?
And ideally, in what way can I make it so that each additional member does not detract or dilute the value of the community, but actually adds value?
Functionally, that's what a number effect is.
Does that help?
Second question.
What would it take me to become your global Chinese partner, to help share your message with 15 million overseas Chinese entrepreneurs?
You'd have to have credibility.
Real talk.
The reason that I think the content that I have has been able to perform really well is because I had the backdrop of the proof.
The Alex Ramos brand was built off of $100 million net worth prior to this.
It wasn't like coaches coaching coaches about whatever.
I've already done this and that's my proof.
I don't need to do this.
I'll do this because I like it and I have other missions in my life, but That proof is the backdrop that everything stands on.
If I were to partner with someone, I want them to be bulletproof from a proof perspective in terms of what they had done to prove that they were.
Because anyone can repeat the words, I mean shoot, literally anyone could be the worst.
The idea of why does my content outperform yours is because the messenger is 80 or 90 of the context within which the message is received.
Elon can tweet I'm shitting on a toilet right now and it'll get 200 million views because Elon's the richest man in the world.
That backdrop is so embedded in the message that they're inextricable and so obviously there's core components of value.
But the why should i believe you is always the big blaring vegas lights up of everyone's head.
Why should i?
Because, if you think about why, why is authority compelling?
Right authority is compelling because it actually decreases risk and so we listen to an authority, because we don't have to spend nearly the mental effort to deduce whether this is true or not or to what degree.
I think this is risky to follow.
If Warren Buffett gives some sort of investing advice, most people would just say Warren Buffett's one of the richest men in the world.
He's arguably the best investor of our generation.
Therefore, I will just listen to him.
It's actually a more efficient way to consume information is to follow authoritative sources, because it takes less cognitive load.
That being said, being high agency as a person, you should separate those things people aren't in general.
But if you are a high agency person, you should be able to separate messenger from message.
No one does though.
And so for me, let's use Napoleon's quote, I'd rather have lucky generals.
If I were to do something like that, I'd rather somebody have a big proof point that they can sit on.
Then all of the content makes sense within that context.
Thank you.
