Why Only 3.3% of These Leads Become Customers

Alex, what's up? What it do? Nothing. All right, man. I'm Kyle. I sell outdoor lighting to homeowners. We design and install it. right now we're doing 1.8 million. I want to get to six in this location. I learned about what you just talked about, not wanting to go too fast into the next.

So, I think what's currently stopping me is just an inefficient sales motion. right now I have one sales guy. He just turned in his 2 weeks. So, I'm starting from scratch on the sales motion and I want to find out when should I hire the next guy? Do I get somebody now and keep trying to fix

it or do I fix it and then Yeah, what do you do? And find a guy. So, to me this is like a red alert thing. Now, how much of your business is recurring? almost zero except for holiday lighting. Got it. Okay, so you need to solve this like now.

Mhm. Do how to sell it? Yeah, yeah. Okay, so how to you started selling yourself and then you got the sales guy. Yeah, yeah, yeah. I have all the numbers right here if you want that. I can run through it, too. not yet. So, if So, at first I was worried cuz I thought he was like the

only person who could, get you business and I was like that would be No, no, I'm doing about 20% of sales now. Okay, and he's doing 80? Yeah. Got it. Okay, so then what stops you from moved town. Like I could do It's not cuz I don't know how to do it. Yeah, okay. No, that's good. So, what stops you from getting another

guy like him cuz you need it? I just want to like I think there's too many problems in the sales motion now. It's not efficient enough. Okay. So, I'm wondering should I fix that myself before I try to train somebody else on something that's not even working right. All right, walk me through it and then

we'll we'll go from there. what I don't want you to do is kill your cash flow, right? So, I'd rather have some inefficiency and still have cash flow and then we can fix it, but let me hear what it is if there's any easy things we can pull. Yeah, cool. So, right now CAC is like $1,800 with ad spend and commission. They're all coming Everybody's coming

through Meta. the big problem I think is we're closing 3.3% of leads on the year. Okay. And the like the front-end offer [clears throat] is just you're our featured property, we give you a big discount for being the featured home of the month. Mhm. And

Mhm. And So we added a VSL in because there was some like it just wasn't fitting. Like people like, ", I want this free thing." And we just that wasn't working. So since the VSL which is like last month, we had a

or last 2 weeks, 168 leads. Of those, 25% were unqualified just off of home value. Mhm. 50 shows off the 120 and only closed five of those. we expect like three to five more to close just

You talked to 50 out of 120? You talked to 50 out of 120? Mhm. That's great, dude. Was it in person or was this phone? in person. That's great, man. Okay. So you talked to you So I don't think up to that

part, I'm not that worried about. I thought I thought that was bad. Cool. No, dude. It's Meta leads, man. these are Yeah, cuz if it was search, then it'd be a different thing. But like, dude, Meta leads are they're just it's it's not the highest quality platform. But you're talking to fundamentally

you're talking to 50 out of 168 even if you have the unqualified 50 out of 120. we that's not where I think the issue is. Okay, what's the cost per lead, by the way? 36 bucks. Okay, $36 per lead. Okay, got it.

cost per appointment is like 140. Okay, got it. What's the what's your what's your lifetime, gross profit per deal? $5,500. Great, man. This is awesome. Okay.

Yeah, dude. $140 appointment closing a 5K thing. We can, we can make that We can make those numbers work. Okay. So, fundamentally you should be closing a third of these appointments, and you're closing what percentage right now?

Like 10%. Okay, got it. So, we have like we need to do a triple. Okay, so walk me now through in more detail. So, the person comes in for the feature of the month. So, they Is this a lead ad? yes.

yes. Okay. So, lead ad, okay, and then there's they submit, right? And then is there a thank you page that they get routed to? Yes. Okay, so, the thank you page has a VSL on it? Yes. Okay. VSL on the landing page and like a short one on them.

Got it. And then there's a schedule underneath of the VSL, correct? Okay, got it. And then after they book, what happens? they get like automated first text

and email stuff. it's pretty low book rate off of that off the page. Most of those are manual reach outs to get them. Yeah. That's fine. That's fine. Okay. So, the vast majority are not self-scheduling. That's fine. Let's just run that flow real quick. So, I wanted to say the other one. Lead form, thank you page VSL, they schedule. After they