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Watch This If You Own a Service Business | Ep 971

Alex Hormozi, owner of Acquisition.com ($250 million portfolio), coaches Corey who runs ProShine Professional Cleaning with his wife Nicole. Their HVAC cleaning business generates $1.25 million annually with $479,000 profit (38% margins) but carries $60,000 in debt.

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Alex Hormozi episode thumbnail: Watch This If You Own a Service Business | Ep 971
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Key Takeaways
  1. 01

    Corey's HVAC cleaning business generates $1.25 million annually with 38% profit margins and 82% close rates

  2. 02

    Alex recommends a 10% price increase that could yield 25% more net profit ($100,000+ annually)

  3. 03

    The business scaled from 120 to 200 monthly leads by optimizing landing pages and increasing ad spend from $5,000 to higher levels

  4. 04

    $100M Offers explains how raising prices can increase customer conviction and perceived value through the virtuous cycle of pricing

  5. 05

    Affiliate strategy involves offering partners $175 dryer cleaning services they can sell while keeping 100% profit

  6. 06

    One year later, Corey nearly doubled revenue to $2.3-2.5 million by implementing the recommended tactics

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Alex Hormozi, owner of Acquisition.com ($250 million portfolio), coaches Corey who runs ProShine Professional Cleaning with his wife Nicole. Their HVAC cleaning business generates $1.25 million annually with $479,000 profit (38% margins) but carries $60,000 in debt.

The conversation covers systematic scaling tactics including pricing optimization, funnel conversion improvements, advertising strategy, and affiliate partnerships. Corey's business demonstrates strong fundamentals with 99% show rates and 82% close rates, positioning it for aggressive growth through tactical refinements rather than major overhauls.

Business Model and Current Performance Metrics

ProShine charges $15.75 per HVAC unit with a two-year growth-free guarantee, averaging two units per house for $31.50 total service cost

Revenue sources: 60% from paid ads ($3,000 Google, $650 Facebook), 15% local SEO, 25% affiliates including one partner sending $30,000 monthly

"Our show rate is 99% because it's the 1% that the client just happens to not be home where they forgot about our appointment" - Corey

The affiliate model works because Corey refers high-ticket HVAC replacements ($40,000-45,000) while receiving lower-ticket cleaning referrals

Pricing Strategy and the Psychology of Premium Pricing

$100M Offers explains the virtuous cycle of pricing: higher prices increase emotional investment, perceived value, and customer results while decreasing demandingness

"If you raise your prices, what sometimes happens is that the conviction of the customer that you can actually deliver on the promise you're making goes up" - Alex

A 10% price increase requires maintaining only 65% close rate to increase profits, potentially adding $100,000+ annually at current volume

Corey previously implemented a 23% price increase after Alex's workshop, resulting in higher close rates and more revenue

Debt Management Philosophy and Risk Reduction

Alex advocates a Dave Ramsey-style approach: "debt increases risk. Risk, when multiplied over a long time horizon, tends to come due"

Corey plans to eliminate $60,000 debt within 4-5 months, currently allocating 10% of profit toward debt reduction

Enduring companies like Chick-fil-A operate debt-free, providing stability through business volatility and seasonal changes

Landing Page Optimization and Conversion Rate Improvements

Current landing page loses 50% of traffic by requiring two steps: homepage navigation then form submission

Recommended single-purpose landing page eliminates navigation, focuses on 18-point inspection offer, and includes phone number for immediate contact

"This is going to be a game of incremental improvement. Like no Hail Marys. This is just consistent yardage" - Alex

Landing page optimization alone could potentially double conversion rates from current 13:1 ROI to 26:1

Facebook and Google Advertising Optimization

Facebook ads need mobile-first design: text must be readable at phone size, with 18-point inspection offer prominently displayed

Strategy involves running 40 variations of successful ads with different backgrounds and colors, plus converting best organic posts into ads

"If for every dollar you gave me, I gave you $5 back, what would your budget be? The answer would be as many dollars as you possibly could" - Alex

Google ad spend increased from $3,000 to $5,000 monthly with potential to scale to $30,000 based on current 13:1 ROI

Affiliate Partnership Strategy and Lead Generation

$100M Leads outlines three affiliate models on pages 237-239, with Corey implementing the partner upsell strategy

Proposed offer: partners sell $175 dryer cleaning service, keep 100% profit while ProShine delivers at $100 cost and upsells core services

Alternative HOA outbound strategy involves attending community events, booking 55 inspections from single events through direct engagement

"Referrals, everyone promises no one delivers. You need to have something that they're going to get into bed with you on" - Alex

Email Reactivation and Seasonal Marketing Campaigns

Current reactivation emails generate business by offering yearly free checkups, but Alex suggests stronger psychological triggers

Recommended email angles: "I owe you $175" or "we messed up" to increase open rates and response

Seasonal campaigns target allergy season (April pollen) and winter mildew issues when heating elements activate

Email reactivation could generate 20-30% additional revenue as pure profit from existing customer base

One-Year Results and Business Transformation

Corey nearly doubled revenue from $1.25 million to $2.3-2.5 million within 12 months of implementing Alex's recommendations

Monthly lead flow increased from 120 to 200 higher-quality leads through landing page optimization and marketing improvements

"The biggest impact was obviously marketing, which we knew was an issue. We went with a new third party that's been there, done that" - Corey

Business growth enables expansion plans for second location and new opportunities for existing team members

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