I have now the distinct pleasure of doing lots of Q's and A's 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, seven plus me. And I'm four million of the cash. That's a brag. I don't know if he knows. Okay, cool. So why can't we do more? So each issue of seven agents that now do two billion in aggregate. Are they unskilled? No, it's in the industry average. Two of them are quite young and good for that age. A few hundred thousand dollars each, a month 21, a month 23. Okay. Okay. So let's just skip here and say that you have enough human beings in your market to do this. You have metrics for their funnel process. to be honest i've just been designing the system so so you're good with your bottle yeah right can you afford to do good margins in your 6 million so we can skip money yeah we have about four million there it's cool fantastic and that's tax-free by the way manpower is the issue there's one unique issue in my market which was quite so it's been conversation why can't we do more yeah So what's the unique thing about your market? Yeah, so in the UAE you need to get smashed. 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 a four year contract because the government will come inspect. How much does that cost? The office that we're negotiating at the moment in dollars, like 350,000 plus bidder. per year yep okay so yeah when the question is 4 million profit yeah right but you can make 3.6 and then have all the scaling opportunity you know you're in the office now yeah 10% of your profit reinvest in growth yes okay so what's the issue hiring the talent because because i'm so so that's not the problem anymore so we can say it's lower risk i mean thanks for being a sport I've had a good year. I can take it. Well, not that good. You've got to scale. Okay. So, your market's obviously not an issue. Yeah, market's not good. Okay. So, let's take out your four. Two million is what it is. And so, seven people equals two million dollars. So, let's say $300,000 per person, just using rough math. Yeah. 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 when it's 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. Let me 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 delta there is you negotiate to three hundred thousand dollars a year so you save 50 pounds who gives a shit right sell a house whatever the point is that let's say it takes you extra time it's like you make five hundred thousand a month right now yeah so what's that that's two and a half days of work is generated right 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 plan application basically waiting on that and then we're done prices negotiated it is negotiated I mean we're trying to get approval from the government to change it into this space but you're gonna do this space We gonna have four desks open right now Yeah Okay so that like 50 growth So why not more I guess I don take the time to train people as much as I should so I need to hire that out Because, see, I'm at a lot and it's low risk for me. I bet for me to keep billing while 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 god to sales training god. 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 outburn anyone you will not be able to in the business you want to build outburn everyone and so the sooner you can bridge that gap the sooner you start building the business you ultimately want now i'm sure on some level your ego is tied to how much money you made but But like big game, right? No one cares what you make. They're going to 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 the team you will get disproportionate returns we'll make more than a million dollars back getting each of those other guys an extra one deal a year yeah it's also like I do all the content so yeah yeah so the time is yeah so it's also okay so back to this what do you have to do to get we should fill those like tomorrow right you have four desks why not use But 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 DCQ. He was the former president of Real Brokerage. He's super familiar with the space. But all this time doing 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 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 through the process now, we get to document the successful sales in each step and then try to get it. When you walk into a house, where do you sit? Has he been walking through the process of selling a house before? No, okay, this is called the gameplay. Let's walk you, whatever. You have to script all this stuff out. Yeah. Anything someone says to a customer should be scripted. Okay. Okay. I think you actually can get to 24 million dollars you've heard. You can totally do it in 24 months if you shift your perspective from sales god to sales training god or sales recruiting god. Yeah. Right? To take that leap when the new office is done, you can start trying to take it now. Yeah. 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 leads. Yeah. And then you don't have to start taking these people from zero to hero. You can just take heroes and become superheroes. Yeah. that's where you want to be 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 inch maybe 15 million a year that you'd be doing they're doing a million 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. Thank you. Thanks, you guys. Make your girl feel nice you know Alex you probably didn know this but I your long Chinese cousin from Australia I believe you My name is Max I take your mission very seriously Within 24 hours of your book on a trip a month ago, I was so excited. I had 8 shots of coffee and I saw the light that morning. My study is a school community called The Money School, inspired by you. I do what you do but for the Chinese entrepreneur. I had 75 members join within the first week, charging $1,000 each. Lifetime, monthly, one time? I'm doing a funding member stage, so it's one side for life, and then I'm going to do $1,000. Okay, got it. I've got two questions. The first one is, I really want to hit the 1 million monthly rep targets 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. What am I doing? If you're like, write another book, Alex, and you have some money. What is the consistent value that you provide to people in the community? So I've done this for many years and I've made... I'm not summarizing your book. He's like, I take your content. I'm doing that too. I've been a small time KOL in Australia for the Chinese. KOL? K-opinion leaders. Okay, got it. On YouTube. Okay. I have a group of audience. Got it. I listen to my YouTube content. Who's the audience? I've seen Chinese entrepreneurs who are studying. I'm making something. Okay, got it. So the thing with membership, who cares about recurring revenue 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 what 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. 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-churned community that does 3D printing in school. What they do is they find the hottest trending items and then they create the 3D blueprints. 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's 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. But that creates this consistent thing that gets consumed. And then next week, there'll be new deals, and so those deals are gone. Like gym lunch, we made new ads that we tested every single month that we would then give to the gym owner. So rather than spending money, wasting money on production and testing ads that don't work, we would pre-film test and give them only the winners. Maybe we 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 zero value now So what we do is we want to set like if you have inputs you got a black box and then you got output being money right This is your one thing that's very valuable. You can only charge for it once. This is much smaller if you charge 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. Like I couldn't make ads for a hundred different businesses because they're all different, right? I can't test a hundred different businesses. If you have a super new or beginner network, you teach them one, two, or three different business models that would work, and then you sell the inputs 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 $10,000 up front and then $500 a month after that, it probably would be relatively sticky. If someone's willing to pay $10,000 and it's $500 a month, as long as the $500 a month was still, like the $10,000 buys you some time. But as long as the ongoing value surpasses the $5,000, usually by three or four X, then you're good to go. So I 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 network 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 Ramosi brand was built off of $100 million net worth prior to this. It wasn't like coaches, coaches, 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 would 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 like, why does my content outperform yours? It's 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 was always the big blaring Vegas lights up of everyone's head. Why should I? Because if you think about 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 rich man 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 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 for 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 would rather somebody have a big proof point that they can sit on. then all of the content makes sense within that context. Thank you. Thank you.
