I came across his sort of bulk service brokerage model on one of his most recent videos and could use some feedback on its viability. As I am a skeptic. He was asked how he would rise again if he lost everything; his money and his popularity.
The concept revolves around partnering with local businesses, particularly those offering services like chiropractic care, massage therapy, personal training, etc. and negotiating bulk rates. The plan is to front the capital for marketing these services and then work on generating leads. For example, I’d approach a chiropractor and propose that if I can bring them a certain number of customers, say 100, within a month, what would be the lowest rate they’d offer per customer. The idea is to secure these services at a discounted bulk rate and then market them to potential customers at a slightly higher rate, but still less than the standard price, thereby earning a profit from the markup.
However, I’m concerned about the practical challenges, especially the costs associated with marketing and acquiring customers. Do you think this is a feasible model? Has anyone here tried something similar or have insights into how this might work in practice?
Marketing costs alone, especially digital marketing, could cost a lot more than you’d make by generating a lead and closing the deal alone. If the chiropractor offers a $30 discount, you MIGHT get one or two customers if you ran some facebook or instagram ads for the same price. In certain conditions, I’ve gotten ZERO leads with 30 bucks. If you were doing some solo street team work, sure, I could see it working; however, running those ads in my opinion could only be of benefit for the business themselves because at least they’re building a reputation and generating some brand awareness.
Stuff like this makes me extremely skeptical on following the advice of any youtube guru at this point. It just solidifies in my mind the idea that most of these youtubers made money by selling courses. It just seems disingenuous.
If I’m wrong, I’d 100% love to hear why.
Stop watching YouTube gurus. Period.
You’re basically offering agency services as a success fee instead of hourly or etc. It’s not unique, just a riskier pricing model. Just become a marketing agency and offer the standard services. See what you could make doing it normal and offer success fees in lieu of standard fees once you have an audience.
Stop watching YouTube gurus.
This is the best advice you will ever read in this sub. Full stop.
If only people realized they’re being advertised to via these folks. Scary effective for a big chunk of the population. Modern day mlm is what it reminds me of before people became aware of mlms.
Stop listening to Reddit gurus period 🤣 Alex and his wife have accomplished 50x what this redditor ever will
I’ve sold ventures worth hundreds of millions. Sorry bud. Wrong commenter to pick on :)
By selling online courses to idiots.
Thanks for the defense :)
So groupon?
checkout GoHighLevel + Uphex… it’s definitely possible but nowhere as easy as it sounds. It’s also super hyped right now so intense competition (because everyone else is watching the Hormozi stuff too)
Don’t listen to the guy who’s actually done it, come ask a bunch of idiots who’ve done nothing on Reddit.
Terrible. There are people here with huge exits. I know at least a handful of them because we all get coffee. We all chuckle at comments here assuming there aren’t. I bet there’s more than you think. We just get burnt out since we tend to do this in real life also as mentors and advisors.
youtube gurus will say a whole bunch of good-sounding shit that is actually no more helpeful than any community college business or marketing 101 class, but the one thing they are 100% correct about every time that is NOT BS is you just have to get out there and execute.
hormozi says a bunch of weird shit on how to sell people and whatnot and includes acronyms and long-winded explanations. this is him attempting to sell you on his image. what you need to do is look at what he’s actually doing (selling a product and investing 100% of time into building his brands and companies) and you need to go baalls deep on some shit
stop listening to go-getter gurus for a bit and listen to Founders podcast. the guy talks about biographies of actual successful people who have succeeded massively in life and business. you’ll notice the common thing between all naturally successful people is that they are wildly passionate and execute on shit 20x more than the average person.
Ding ding. Dead on.
Total cost / target margin = nominal breakeven sales
Do the math and see if it’s achieveable. It it looks reasonable, then break sales down by units / month and or units/ day. If this numbers look achieveable, then make a plan and try to execute.
Successful businessman here doing 500k per month so a reasonable success id say, I’m 40+ years so older and wiser than some but not others if I have any words of advice it would be stop listening to anything hormozi says, he spouts an incredibly a lot of bullshit how more people can’t see through him is beyond me there are some good ‘gurus’ on socials he is not one to follow
Who would you recommend instead for in-depth information?
Someone above said it. Find podcasts from successful founders. Read HBR, bcg/bain/mckinsey content (they have a TON). Go find books from professors about marketing, advertising, etc. Successful founders don’t want to become YouTube gurus. They’re too busy lol. It’s the people who are typically middlemen that do because they hit a ceiling and get stuck since they’re not unique and typically just get social followings to sell crap. Don’t get me wrong, they make some money, just more of a scam-ish than creating any real value long term.
Thanks for the advice. I still have a question, though. I can’t say the same about other YouTube gurus, but I’ve tried to watch some of Hormozi’s content and apply the information to my organization. To be honest, it worked out very well. Maybe it’s because my organization is small and wasn’t optimized very well, but Hormozi’s content served me exceptionally well. If he is scam-ish why did it serve me so well?
Lol Groupon much
He and his book are legit. There are bad gurus out there on youtube, but he is legit. I can’t speak about his consultency services yet. Haven’t bought them.
About the arbitrage strategyy, haven’t heard him say that yet but yeah, online marketing costs are ridiculous. 10-15 years ago you could get rich with google ad campaigns. Not anymore. Like any get rich scheme, they don’t work or should be taken with a grain of salt.
You’re wrong because you suck at what you do. You can’t jump into an industry/niche, say you’ll provide a service and not be able to execute. The problem isn’t the model, it’s that you have 0 experience.
To get leads you want to spend $50 - 100 per day… Business isn’t easy, and you shouldn’t expect it to be. The reason this model works (for him) is because he understands how to develop offers, he understands pricing models, funnel building, sales systems, etc. There are so many ways to make this model work, it’s just not easy.
You are wrong, that’s okay though. If you want to pursue entrepreneurship, the first thing you should do is fill up you ignorance debt. You can’t provide any value to a business, if you aren’t valuable. The market doesn’t care about how you feel, do what needs to be done. That’s it.