Transcription
What's going on, everyone? I want to show you in this video one of the fastest ways to make a tremendous amount of money in a service business. All right, so right now, if you want a service business or any kind of business where you provide stuff uh to customers, if you sell stuff, then this video is for you. Um, just so you know, if you don't know me, my name's Alex Romosy. I own acquisition.com. We do about 85 million a year in revenue, uh, and this channel is just because a lot of people are broke, and I don't want you to be one of them. All right, so uh, I was thinking about the different businesses that we have. Um, we have a publishing business; we have a photography business, which is a chain of brick and mortar.
Somebody asked me in one of the comments to name a—I don't tell you the actual names of these because part of the deal structure that we have with a lot of these are our influencer-based or personality-driven brands, and so I don't want it to be like, "Oh, you're just one of Alex's businesses." All right, so just to be clear for everybody, the reason I don't do that, I'll tell you the ones that I own 100% of, but the ones where I'm a minority partner in, I don't—I don't tell you what they are. I'll tell you what categories they're in. Um, so like I said, we've got a publishing business, which is a digital digital business; we have a brick and mortar chain photography studios; we have we have a certification business; we also have a an online—it's a similar business but online for trainers; we have our gym licensing business, which is Gym Launch; we have our cell phone business, which is Prestige Labs; um, and then uh, we have Allen, which is our software uh company for for agency owners that helps brick and mortar agencies uh work leads. All right, so just so you're curious, that's what we do, and we're looking getting some others. Anyways, one of the things I was thinking about within our businesses is like, what are the different categories? And this is kind of a spin-off of the recurring video that I made about cracking Netflix's code, right? Is what are the different types of products that we can sell? And I'll show you one of these that's incredibly valuable that if you're ever pressed for cash, it's the easiest thing that you can sell for a ton of money.
First, there—I was like, you've got products, right? You've got widgets, you've got stuff. All right, that's the first category. The second category—let me see if I can draw some nice lines here—the second category is you've got services, right, where people do stuff right for other people. And the third—and this is the one that a lot of people miss out on—is access. All right, so I'm gonna go through all three of these in a second. All right, so products—everyone should kind of understand what these are, right? You get these in the mail, and they can also be digital goods. So here's a here's an AAB version of each of these, right? So you've got physical, and then you've got digital. So you've got physical product would be getting, you know, supplements in the mail; a digital product would be uh buying buying to buy Netflix—like, you know, buying a Netflix subscription, right? That's where you're you're consuming a digital good. When you buy media, that is a digital good, right? You're buying eyeballs, right? If you're buying physical services, that would be like buying a massage; you've got digital services, which would be like um like a marketing agency; that would be a digital service, right? They're not actually buying—you're not buying something that's going to happen in the real world; you're happy—you're buying something that's happening in the digital in the digital sphere, right? Third is access, where you've got physical access, which would be like uh concert tickets, right? You have access like to someone or to an experience of some sort, and then you've got digital access, right, which would be uh you you buy access either to um like a virtual a virtual event or or you have access to me via Slack or something like that, right? That would be digital access. All right, and so when you're thinking about your products and services, right, one of the easiest things to do to make it more valuable is think, how can I add—if you have, let's say, products—how can I add some sort of service component to it to make this more valuable? And we do this so that we can not be a commodity, right? The goal is to be so different from everyone else in the marketplace that people have to consider you on their own as your own standalone business so that you can have monopoly prices. All right, despite what the government will tell you in antitrust laws, the goal is to become a monopoly—like, you win the game by being a monopoly—by being so good that no one else can compete with you, right? And now, because those companies have so much power, they own the government now. Anyway, not getting into that—that's not the point—but the point is is that uh you can pair these concepts. So most people just consider themselves, "I am just a physical products business." It's like, okay, well, can we add some sort of digital products right to our physical products to enhance the value and differentiate ourselves? If I have a service, I have a physical service; maybe I can add some sort of digital component to it, or maybe I can add some physical products that go with it or digital products right they go with it. Or thirdly, is there a way that I can add access, which is probably one of my favorite of the types of of businesses? And here's why: This one has almost 100% margins, right? Digital access is almost 100% margins; same thing with digital products—almost 100% margins, right? Um, digital services less so. So services—just so you're you're wondering why so many service businesses have a hard time scaling—this is very hard to scale people; it's also hard to scale things that have hard costs, right? And scaling people, you have to scale culture; you have to scale training; you have to scale onboarding; there's a lot of things have to scale for scaling services, which is why most people don't like buying those types of businesses, which is why—and I'm making this video right now—if you want to increase your enterprise value, it's trying to figure out how you can add multiple of these things. So I just gave you six different categories here, right, of things of different types of things that you can have in your business. I know that the sun is making me—you know, I'm dodging the sun here, right? I'm a sun chaser right now.
When you're thinking about how you can add more value, right, and I'll tell you the hack right now, all right, so you guys ready for this? In terms of if you needed to make money, the way that you do this, all right, this is my favorite one that you can use, which is access. All right, I'm gonna put this in big: Is that you sell a more individualized, higher-touch version of your own solution. All right, and so what that means is you can say, "Hey, I can only take five people for a one-on-one right or a small group right experience for one year for this big outcome that they're all going to want, and I'll guarantee that you'll get it or I'll keep working with you for free until you do." Which means when you buy this thing and when you give me this money right now, it means that you've solved this problem; you can put this money down; it means that that outcome is going to happen. I'm going to try and get it to happen 12 months because I don't want to keep working for free, but you know that I will continue to work with you until you achieve it. All right, so right now, if you have a client base and you're like, "Man, I'm strapped for cash," and the only way that they can do this is if they prepay the entire period of time, all right, and so the thing is is you don't need to have any kind of discount for an offer that's structured like this. The reason that they're getting a lot of value is because they're getting access, right? They're getting access in addition to a service, all right, and they're getting some level of expertise on top of it. All right, and so right now, if you need to make an extra five grand, 10 grand, 20 grand, 50 grand, whatever it is that you have depending on the size of your business, that is one of the easiest, fastest ways to generate cash flow for your business and use up some of the uh audience while still maintaining good pent-up demand. All right, what I mean by that is that if you sell a hundred of these or you sell out in terms of like you sell out all the demand that's there, running something else in the future will bomb, right? And so the idea is if you know that you could sell 20 people, sell five; if you know you could sell 100 people, sell 20, right? Try and maintain the vast majority—80%—of the demand still there and have it pent up so that when you do another offer like this in the future, you'll sell out again. And the idea is that as you grow, the number of people that you will have in that demand pool continue to increase, and so you will always be able to sell out, but the number of total slots will continue to increase, whereas most people always go for the biggest ass they possibly can, try and sell out and liquidate all the goodwill they have in their audience all the time, which means they're always searching for building up the next demand, which is why they're always poor because it's very hard to do that. All right, it's much easier to maintain goodwill and multiply it and then feed and then just skim a tiny amount off the top and then grow the goodwill of the base to go from, you know, 100 people in your base who want to buy the thing to 200 people in the base, and the next time you go from 20 to 40 rather than going from 20 to 200, right? Because you could do it, but then after that you're done—nothing—you got to start from scratch again. And so it's much better to always keep some goodwill kept up. One of my favorite ways to liquidate that in a very controlled burn manner is to have access so you can have implied urgency and applied scarcity uh with a very, very high-ticket premium, and you'll probably get some of the best customers to do this with you; they'll be the least needy, believe it or not, um, and get some crazy great testimonials and great outcomes as a result of it. So um, anyways, Moseynation—like I said, my name's Auction Wizzy on acquisition.com, uh, with 85 million dollars here, and I have nothing to sell you. If you enjoyed this video, uh, hit subscribe; I share other stuff like this that's helped us scale our businesses. All right, so keep being awesome, and if you didn't enjoy this video, I still love you anyways, and I'll see you guys the next bit. Bye.