I Grew a Business to $10,000,000 in 4 Months to Show It’s Not Luck

Summary

• One of our portfolio companies increased revenue from $570,000 per month to a $10 million annual run rate in just four months, thanks to changes in marketing and sales tactics.
• We started by addressing the low show rate of 18% for the company’s webinar. This was due to insufficient participant engagement and infrequent sessions. We aimed for a 25% show rate or higher.
• We implemented a four-step strategy to increase the show rate: increased email communications, added SMS notifications, used behavioral response emails, and sent voicemail messages. This improved the show rate by 33%, reaching 24%.
• We focused on delivering value in communications to motivate participation, tapping into customer pain points, providing proof, and minimizing risk, time, and effort.
• Using different communication channels like emails and texts increased engagement and the chances of them showing up, as texts have a 95-99% open rate.
• In the webinar, we decreased the time and increased engagement by scripting a faster intro, emphasizing the live aspect, clarifying the audience, and injecting scarcity and proof of action.
• A takeaway approach was utilized by stating clear qualifications and eliminating non-fit participants, adding urgency due to limited availability, and showing proof of others booking.
• Our sales funnel focus shifted to improving the close rate, which was at a low 14%. We improved it to 35% by implementing better framing, targeted discovery, and a clear pitch structure.
• We improved sales execution through roleplay, better KPI tracking, prioritizing the best closers, and incentivizing full payment closings.
• By aligning all steps from marketing to sales, with consistent messaging, we achieved a streamlined sales process.
• We managed to cut customer acquisition cost by about half, improved the business’s profit margin to 30.7%, and achieved sustainable growth.
• The key takeaway is to keep the focus on improving existing processes rather than chasing new ones. This enhances both revenue and profit without additional risks.
• Measuring key performance metrics regularly can act as an intervention, compelling teams to improve organically by changing behaviors towards goals.

Video

How To Take Action

I would suggest implementing a multi-channel communication strategy to boost engagement and participation, especially for webinars or online events. First, you can use a combination of emails, SMS texts, and voicemail messages to remind people about the event in the lead-up to it. Emails can deliver important information and benefits of attending, while SMS texts (with a 95-99% open rate) ensure your messages are seen. Set reminders for the night before, the morning of, and one hour before the event to maximize attendance.

A good way to capture and maintain interest during webinars is by scripting a concise and engaging introduction. Always emphasize that your event is live by mentioning current events, dates, and weather. This adds authenticity and relevance. While delivering the event, create a sense of urgency or scarcity to motivate participation—clearly state who the event is for, and prove the credibility of what you're offering by sharing success stories and live booking actions from attendees.

Improve your sales process by ensuring your team understands the importance of framing their conversations. Starting strong sets the tone—introduce yourself with expertise and focus immediately on the main purpose, aligning it with customer needs. You should measure key metrics regularly, such as show rates, to naturally drive improvement. Keeping existing processes lean and improving upon them gives you a low-risk way to generate more revenue and profit without entirely new ventures. Always remember, better isn't always about new—sometimes it's about refining what you already have.

Quotes

"Pain is what drives motivation"

– Alex Hormozi

"No one remembers what they signed up for this morning, let alone five days ago"

– Alex Hormozi

"Get to the point"

– Alex Hormozi

"Execution over plan"

– Alex Hormozi

"Use what you've got"

– Alex Hormozi