One Step Away From Collapse (Here’s How We Fixed It) | Ep 960
4/9/202624 min
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Joel built a $6.4M travel hedging company, but 85% of his customers come from one channel. If that channel dies, the business dies with it. In this episode, Alex Hormozi breaks down exactly how to fix this problem and turn a fragile business into a scalable business model. A good offer gets attention, but good systems scale the business. Focus on building efficient systems.
In this episode
00:00 Introduction to Joel’s travel hedging business
04:53 Demand-constrained vs supply-constrained diagnosis
06:14 Creating better ads with UGC
09:02 The Kaleidoscope creative testing framework
17:19 How to boost sales and score leads
18:37 Handling potential objections proactively to improve sales
20:49 Dialer math and hiring a larger sales team
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Clips
Transcript preview
First 90 secondsAlex Hormozi· Host0:00
This is Joel. He runs a coaching and course business that teaches people how to basically use credit cards to get sweet vacations. The problem is that he's dependent on one platform. If that platform goes away, his business could die basically overnight. I'm Alex Hormozi, founder of acquisition.com, which helps businesses scale. And so let's meet Joel.
Joel McDonald· Guest0:17
Hey, Alex. I'm Joel McDonald, founder of Just Get Out of Town, also known as JGOOT.
Alex Hormozi· Host0:22
Tell me about the business.
Joel McDonald· Guest0:23
So we help travelers turn everyday expenses into multiple bucket list vacations every year. Our largest audience is retirees, empty nesters, and business owners.
Alex Hormozi· Host0:36
I would not have guessed that. That is really interesting. Okay.
Joel McDonald· Guest0:39
The way we help them is through something we call travel hedging, not travel hacking. We differentiate ourselves there. This allows travelers to stretch their vacation budgets three to ten times farther.
Alex Hormozi· Host0:50
So what's the difference between hacking and hedging?
Joel McDonald· Guest0:52
Travel hacking basically requires that you churn ten to twenty credit cards a year, and that's why it has such a bad association.
Alex Hormozi· Host1:00
Uh.
Joel McDonald· Guest1:00
Travel hedging is choosing the two or three best cards for your individual spending profile and learning how to effectively use them.
Alex Hormozi· Host1:09
So what's the current state of the business?
Joel McDonald· Guest1:10
Our trailing twelve-month average is six point four million. Got a one point nine profit margin. That's about a thirty percent profit margin. ROAS is four point five to one, and then our LTV to CAC is a very skinny one point four to one. We'd like to change that.
Alex Hormozi· Host1:25
Yeah. So what do you want to have happen?
Joel McDonald· Guest1:26
We've got about twelve thousand clients that we've put through either