Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.Wanna scale your business? Click here.Follow Alex Hormozi’s Socials:LinkedIn | Instagram | Facebook | YouTube | Twitter | Acquisition Mentioned in this episode:Get access to the free $100M Scaling Roadmap at www.acquisition.com/roadmap
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Hey, Ox. Hello. My name is Rick, and I sell financial planning services to young big tech employees, W2 employees. We do about half a million in revenue. I'd love to be at five million within the next three years or so.
And what's currently stopping me is just a time resource management issue where I'm currently doing the fulfillment of meeting with our clients and I hired a new full-time associate planner to start to take over those relationships. And so I think my current constraint is figuring out how to replicate teams as I continue to grow the business.
We're doing, relatively, we're just doing organic marketing content, mostly on LinkedIn, and write a daily blog, which I post to the website, and an email list, a small email list.
How many sales a month did you do?
About two.
Two sales a month, and is the model like 1% assets under management?
No, and that was another question that I wanted to get your thoughts on was, One of the big swings that I took about four or five years ago is to change the traditional financial planning model. So instead of charging the 1% AUM fee, we charge a 25 basis point AUM fee and then a monthly subscription, which is 275. So it nets out to be about 5,000 per client per year on an annual basis.
And then obviously bigger clients pay more on the AUM.
Interesting. Okay, got it. Okay, so typically with your type of business, they're usually demand constrained, not supply constrained. Like managing lots of people and lots of money usually doesn't actually take too many resources relative to how much they make you. And so I think that the big issue is probably just acquisition. So getting two sales a month is probably the big bottleneck.
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