Bedros Keuilian Podcast Show - 184. STEAL THIS $100K/Month Service Business Model
Episode Date: April 7, 202642% OFF - Get your Digital Man Up book + Audiobook + 2 Exclusive MASTERCLASSES https://bit.ly/manuptribeOPEN A FIT BODY LOCATIONA High-Profit, Scalable Gym Franchise Opportunity Driven By Impacthttps:...//bit.ly/bedrosfbbSTEAL THIS $100K/Month Service Business Model | E0184If your service-based business is stuck at $10K–$20K/month, it’s not a traffic problem—it’s a strategy problem.In this episode, I break down exactly how to scale to $100K/month in recurring revenue by fixing what actually matters: your offer, your pricing, your retention, and your referrals.
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If you're an entrepreneur and you've got a service-based business and it's stuck,
you've plateaued, you don't know where to go next, here's how you're going to make $100,000 a
month on a recurring basis. Now, if you don't have a business right now, you can hang out till
the end because I'm going to tell you what you can do to start at least building a $5,000
a month recurring service-based business. Here's what we're going to do. So first,
I'm going to teach you how to build a $100,000 a month service-based business. So if you're an entrepreneur
and you've got a service-based business, pay attention, here we go.
Guys, welcome to the Bedrose-Coolian show.
My name is Bedros-Culian, and today's episode is all about building $100,000 a month service-based
business.
Now, if you're an entrepreneur and you've got a service-based business, for example, like
a lawn care business, a coaching consulting business, a group training gym, jujitsu school,
anything that offers a service, whether it's inside of a brick and mortar, or whether
it's a pool cleaning service or long cleaning service or long care service, I should say,
where it comes to your house, or it's a coaching consulting service where you help people
get better at something.
Maybe it's online coaching, maybe it's financial planning, maybe it's teaching them how to
launch a business, how to become better leaders, how to lose weight, how to make money,
how to find a date.
There's all types of coaches and consultants.
But all of these things have in common, whether they're brick and mortar, online or offline,
they are service-based businesses.
And here's how you're going to make $100,000 a month on a recurring basis.
Now, if you don't have a business right now, then you could either move on from this
episode or you can hang out till the end because I'm going to tell you what you can do to
start at least building a $5,000 a month recurring service-based business.
And I think you'll like that plan.
I'm going to give you that plan at the end.
But for now, those of you that already have a business, and it's doing $10, $15, $20,000 a
month and it's stuck, you've plateaued, you don't know where to go next, here's what we're going
to do. So first, let's break it all down, right? Many different ways to make $100,000 a month.
And by the way, that means you're doing $1.2 million a year top line revenue. And if you're doing
$1.2 million a year, and let's say you've got anywhere from 20 to maybe 40% profit margins,
depending on if it's a brick and mortar or pool cleaning or lawn care service or maybe
coaching and consulting, coaching and consulting businesses, they have higher profit margins, right?
60, 70% profit margins as much as that high if you're doing online coaching and consulting services.
Now, if you've got a long care or pool care service, you know, you've got trucks, you've got more
employees. And so your margins might be closer to like 35, 40%. And then if you've got a school,
right, some kind of a jiu-jitsu school, a brick and mortar school, like a fit body boot camp or
some kind of a group training program, then you're hovering more around the 20, 25, 30% profit margins.
So do the math.
If you're doing $100,000 a month in recurring revenue, dude, not a bad thing to be making
anywhere from $20,000, $25,000 a month, take home all the way up to $50, $60,000, $70,000 a
month.
Now, you should also understand some fundamental things before I break this down for you.
Some industries are more competitive than others.
Some industries allow you to charge more than others.
Some industries have a higher churn rate, meaning people sign up and then they
leave, they don't stick. So these are the things I'm going to teach you at the end of this episode
so that if you're like, huh, I think I have a business that's high churn or doesn't charge as much
as it could or I'm in a very highly competitive space and I want to find a more blue ocean,
less competitive space. I'm going to give you some ideas for that. All right. So first let's
talk about this. If you've got a product or service that's $50 a month, you need 2,000
customers to get $100,000 a month in revenue. If you've got a $200 a month, you've got a $200 a
month product or service, let's say, right? And that could be a jiu-jitsu school, a group training school,
like Fit Body Boot Camp, right? We charge about $200 a month per client. All you need is 500 clients,
members to make $100,000 a month. Not a bad business model, right? But there's a brick and mortar,
whether it's a Jiu-Jitsu school or a CrossFit or a Fit Body Boot Camp or any kind of brick-and-mortar,
there's build-out cost involved. There's rent involved. So your margins are going to be closer to that.
20, 25, 30% versus 50, 60, 70% for an online coaching business.
But think about that, $200 a month, 500 clients, there's your $100,000 a month.
Now, if you're charging $500 a month for a service, all you need is 200 clients to get
to your $100,000 a month.
And if you're charging $1,000 a month, guess what?
All you need is $100 customers or clients, and you got yourself $100,000 a month.
And I'll give you a great example of a $1,000 a month program.
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manabundle before it all sells out. Peace.
Like right now, there's a couple of programs that I pay $2,500 for and another program that I pay
$5,000 a month for. Each of those I pay monthly. One of them is a service that I pay $2,500
a month for. The other one is a service that I pay $5,000 a month for. So imagine if that
business that has, you know, that charges me $5,000 a month, if they have 100 customers
that's a nice chunk of money.
That's $500,000 a month in revenue, right?
Ain't nothing wrong with that.
Nothing wrong with that, or is that $5 million?
But I shared this with you because a mastermind or a coaching program can easily be $1,000
a month and all you need is $100 people to give you that $100,000 a month on a recurring basis.
So then how do we get there?
How do we get there?
First off, you have to understand that you need a type of business that,
people want. For example, if you have a lawn care business and you're selling to a community,
so let's just say Chino Hills, where I am right now, our headquarters, our home base of Chino Hills,
California, there's about 80,000 people here in Chino Hills. That means men, women, and children.
80,000 people, right? So if I've got 80,000 people and I need just 500 people to pay $200 a month,
at a fit body boot camp or a BJJ school or a local crossfit or whatever, right?
I can get 500 people out of 80,000 people between men, women, and children to pay 200 bucks a
month. I can get 500 people to do that. On the flip side, if I got 80,000 people, that means
there's probably what, maybe 30, 25, 30,000 homes and apartments? Well, if there's an apartment
complex, odds are one apartment complex is going to have one pool, maybe two.
And that means homes, I don't know, 15, 20,000 homes.
So if I have a home and I have a pool, I could hire pool cleaning service.
But if I don't, then guess what?
I'm not going to hire the pool cleaning service.
So if there's, let's say, 15,000 homes in Chino Hills, every single one of them, like actual
homes, not apartments, every single one of them will have a lawn and will
require a lawn cleaning service or a lawn mowing service unless obviously you, the homeowner,
want to mow your lawn.
But here in Southern California, about one out of every eight homes has a pool, right?
So as you can see, it's probably going to be a little harder to have a pool cleaning service
and to scale that versus a lawn care service and to scale that.
Both a lawn care service and a pool cleaning service are right around $180 to $230 a month.
The difference is every house has a lawn.
Every pool does not have or every house does not have a pool.
And what this means for you is if you have a pool cleaning service,
you've got to knock on more doors and you've got to have a bigger community that you serve.
So maybe you're not just serving Chino Hills.
Maybe you're also serving Chino and Diamond Bar and all the other cities around here
to be able to get to your ideal number of 500 customers.
But if you're a lawn care service,
maybe you can get the number of customers you need right in this city or just one additional
city on top of that, right?
Like Chino and Chino Hills.
So I share this with you because if you are not doing that, if you are not figuring out
how can I charge more, can I have a product or a service, can have a service that charges
more and there's more potential buyers and the pain of disconnect is high?
Those are the three things you need.
Can I charge more?
There's more potential buyers and the pain of disconnect is high.
If someone's got a pool or a lawn, unless they want to clean their own pool or maintain their own lawn,
they're not going to fire you unless you do something stupid as a service provider, right?
If you're a coach or a consultant, if for every $1,000 a month they're giving you,
you're giving them tools and strategies and marketing ideas and sales strategies to help them make
$10,000, $15,000 a month, they're not going to part ways from your coaching program.
You see how this works.
And so it's important for you to understand.
that the value proposition has to be there. My rule of thumb is, for every dollar you give me,
I need to give you at least 10x the value, right? I need to give you 10 times the value for every
dollar you give me if I want you to stick. Because the only way you're going to build a
$100,000 a month business is if you have a high stick rate. And that means the three R's come
into play. Results. When the customers are getting their results that they want, expect, and
desire. Doesn't matter if it's pool cleaning, if it's lawn service, if it's coaching and consulting,
if it's a gym or jujitsu school, like if your jiu-jitsu school has dirty, filthy mats
and things are tore up, the punching bags that are hanging in the corner are all tore up,
the mats have these giant gashes in them, you know, the restrooms are unclean and unkept.
It's not going to work out well for you. You're going to sign people up and then they're going to
quit and go somewhere else. You're going to sign people up, they're going to quit and go
somewhere else. And that's called attrition. You're going to have too high of attrition. That's probably
why you're stuck at $10,000, $15,000 a month in revenue because you got these core group of people
who will stay, but new people sign up and leave, sign up and leave. And so you got a high churn or high
attrition rate. Now, imagine if you have a gym and your gym is clean, it smells good, everything is
well kept and the clients and members that come in get awesome fat loss and fitness results
and they feel like they're part of a community why would they ever quit so results is important
whether it's a coaching a consulting business whether it's a pool cleaning or lawn maintenance business
or whether it's a business like a gym or a jiu jitza school or a crossfit or anything like
that people have to get the results that they expect that they desire and that they're looking
for. Once you have the R of results, then you have the next R, which is retention. Because when you're
retaining customers and clients, now two magical things are happening. One, you don't have a hole in the bathtub
leaking out money. So you can add more people to the bathtub, right, to your business. And each of those people,
as long as they keep getting results, you're going to retain them. And when clients are getting
results and retention, guess what? They become evangelical and they become advocates of your business
and they give you referrals. And that's the other big thing. All of my businesses, whether it's
Fit Body Boot Camp or Truling Supplements, my coaching and consulting businesses, our software business,
one, we deliver the results as expected. We exceed their expectation as much as we can.
We retain the client and then we ask them for referrals by setting the expectation.
So what you're probably not doing is if you are delivering great results, because I could hear it already.
Pedro's, you're yelling at the screen or your car speaker.
Beidros, I deliver great results, man, and I'm retaining my customers and clients, but they're not referring.
That's because you have not set the expectations of referrals.
So when a new client or customer signs up for your service-based business, the very next thing you say once they sign up is you either shake their hand or you welcome them aboard via Zoom or whatever, is you go, hey, as I help you achieve the results that you want with your fitness or your lawn or your pool or your business or your health, whatever, right, whatever service you offer, as I help you achieve the results that you want, can I count on you to help me achieve the results that I want, which is to help 10,000 people over the next five,
years and they're going to say yes as long as you help me achieve my goals i'll help you achieve
your goals by referring friends family and co-workers guys quick interruption to the bedroes cooion
show many of you guys ask me what it takes to open up a fit by the boot camp gym well as you know
we have hundreds of fit by to boot camp gyms across the u.s and canada and i am doing a live
discovery zoom where i'm going to teach you exactly what it takes to open up a fit body boot camp
gym how we're able to guarantee you 100 new paying members before your doors open and how you can
impact the lives of people in your community while making really good money, working with me together
to grow the fitness brand of Fit Body Boot Camp and your personal income and life satisfaction.
So if you want to join me on this live Zoom, go ahead and click the link in the show notes and
join me in the upcoming Zoom.
Back to the show.
See, once you set the condition of doing business as referral generation, now you put yourself
in a position where each time you market and get a lead, you sell them, you deliver results,
you retain them.
and then you've set the condition of them giving you referrals.
And referrals, one, are the easiest leads to close
because they already come pre-qualified and predisposed to buy
because odds are they already know a customer or client of yours
who's already getting the results, right?
And so there is way less skepticism, way less objection
and much more likely to buy from you.
You want that.
And so if you're not generating referrals, odds are
you're not delivering the results as expected, and therefore you're not retaining these people,
and so they're not referring you, a service that they're not happy about, or they are getting the
results and they are being retained, but you haven't set the expectation. You haven't set the expectation
of giving referrals. And you've got to have that conversation. As I help you get more results that
you're looking for, can I count on you to help me get the results that I'm looking for,
which is to help impact more lives over the next X number of months or years, right? And they say yes,
then you go, fantastic, I'm going to get your results, and then you're going to be so happy with it.
You're going to refer people to me over time, right?
And they're going to say, yes, boom, expectations have been set.
That's why referral generation should always be your number two source of new customers and clients.
Number one should be, obviously, paid traffic.
And paid traffic, we're not going to beat that one to death right here because I've done many
episodes on different forms of paid traffic.
There's obviously paid traffic like buying cold traffic from meta and Google and YouTube, etc.
There's also paid traffic in the form of you're doing collaborations with others.
So you're paying others, you know, those who can endorse your product, influencers, ambassadors who already have your future customers.
You're paying them to collaborate and promote your product or service, right?
You might pay to go and sponsor your thing at a local farmer's market if you're a local business.
So there's a lot of ways to get paid traffic.
And there's also another way of paying with your time.
You can create organic content that actually gets attention, adds value, and creates conversion conversations, right?
The best organic content out there should do those three things.
It needs to get attention.
So it needs to be high value, right?
And it needs to get attention.
It needs to add value.
Because if you can add value, people go, oh, shit.
This person's free thing added value to my life.
Imagine what their paid thing is.
And then it needs to trigger a conversion conversation.
In other words, there has to be a call to action.
in your organic content where they're reaching out to you and showing interest,
at which point you either send them to an application or whatever the next buying process is
or get them on a Zoom or a phone call for a sales call,
and then you make that conversion from a lead to a paying client or customer.
That is how we get to $100,000 a month in reoccurring,
because here's the magical part, and I've learned this from my own companies.
Now, as we do hundreds of millions of dollars every year,
once you can get to $100,000 a month,
that means you've figured out how to get the leads,
how to deliver the results,
how to retain the clients and customers,
and how to stimulate referrals.
The rest of it is rinse and repeat.
You get to $100,000 a month,
it's easier to get to $200,000 a month,
and it's easier to get to a million dollars a month.
And that is where scale happens.
Because it's within your first $100,000 a month
in recurring revenue,
that you're going to have to learn
a lot of hard lessons where you thought your product was great, but it wasn't good enough to keep a client.
Or you thought your product was delivering the results, but it wasn't so they left.
Or you thought that the people were getting results, and so you're retaining them,
but you've never set the conditions of delivering referrals, and so they're not referring to you.
And when you ask them, too late, you've never set the condition from the get-go, so it's harder to get those
referrals now, right? But you could always start setting the condition of referrals with your new
clients who are coming on board. Now, as I said, at the end of this, I was going to tell you exactly
what you can do if you're just starting out. You have a great service-based business, or at least
maybe you want to start a service-based business. Ask yourself this, what could I do to sell
a higher-priced product or service? How can I differentiate my product, right? I've got a friend.
He owns a pool cleaning service, and he's crushing it.
and he's charging $30 to $40 more per house per month than other pool cleaners in the community.
Why is he able to do that?
He adds additional services that don't cost him much more but justify the increase in value, right?
Same thing with the solar company that I know.
The solar company not only installs the solar panels, but then charges a monthly recurring fee
that allows the people to pay a monthly fee for them to come out and clean the solar panels once a quarter,
check for cracks, and even repair parts of the roof, because typically solar installers also have some roofing experience.
And so it's almost like you have this $99 a month insurance for your solar panels and your roof, right?
And so if you start thinking out of the box, how can I increase value and differentiate myself in my product so I can sell to the affluent people
in the industry or community that I want to serve.
Now you're playing differently.
One, you're charging more.
People that pay more, pay more attention.
I promise you that.
I've always, always, always found that the people who pay the least
have the least amount of attention span,
have the least amount of commitment to doing the work,
have the least amount of agency in getting after it.
When people pay more, they pay more attention.
They get their results.
And they become great advertisements for you.
Number two, higher paying customers are better quality customers.
They just are.
They actually don't give you a lot of problems.
They put their head down and do the work.
And then they come back and go, hey, what more should I do if you're a coach or a consultant?
The other thing you need to understand is that if you're in the industry and you are charging the same as everyone else,
you're going to screw yourself if you don't differentiate yourself.
by increasing value and also by marketing to the affluent.
Because the affluent, when there's an economic change,
the affluent usually continue to make more money
because they have multiple income streams,
they have a larger amount of savings.
They're not about to cut a service out
because the economy shifted.
Whereas regular people, when the economy shifts a little bit,
they start cutting services out,
and your service might be it.
And if you're charging what everyone else is charging,
then you might go, well, if I just lower my price, I can keep them.
So then the next guy lowers his price.
And then the next guy lowers his price, forcing you to lower your price even more.
And I can tell you this, that no one wins the race to the bottom.
No one.
On top of that, if you keep lowering your prices, how are you ever going to get to $100,000 a month
in a service-based business?
You're not.
So the third thing you need to understand, if you're just starting out, like I said,
get to your first $5,000.
If you're just starting out, figure out how to differentiate your product so much
where it adds more value, but it doesn't add more cost to you.
Figure out how to sell to the affluent people in your community or industry.
And then that third and final thing here is I want you to figure out how you can create
additional backend sales.
For example, at FitBody Boot Camp, people will sign up to work out at our FitBody Boot Camp
gyms three, four, five, six times a week, right?
Six times a week.
Great.
but we know that their goal is to lose weight and put on muscle.
If their goal is to lose fat and to put on muscle,
working out is good,
but they also need to track their nutrition programming.
So we have an additional fee that we charge for nutrition coaching,
building out their macros,
coaching them on their nutrition,
as well as their training program.
So if they came in, let's say, at $200 a month,
they might be paying $249 a month that includes nutrition coaching.
And now they're probably going to need supplements.
And so we also upsell them on supplement services, right?
That might be an additional $50, $60, $100 a month.
And so now you might be charging on a $200, $300, $320, $350 a month per customer
because you're helping solve other problems that they have during the journey
to getting to their desired outcome.
And so think about that.
What other problems do your customers and clients,
have that you can solve because making that first sale is the hardest sale. See, because you
might be thinking, all right, look, I don't have any customers, but I've got a great, let's say,
car washing service. Awesome. You have a car washing service. You go to people's work and you
wash their cars. But can you also say, hey, for whatever, let's say you charge 150 bucks a month
and you wash their car, I don't know, twice a month or three times a month, four times a month,
whatever it is.
Can you also offer them an additional fee every quarter for a deep cleaning where you shampoo
the whole inside of the vehicle?
Can you also maybe partner up with someone and have a dent removal service where you can say,
hey, look, you know, I saw a dent on your car.
We have a dent removal service and you charge a customer $100 where the guy who's going to
come and remove the dent is only charging you $50.
And therefore you made $50 in the difference.
Right? Because the dudes that's got a car, the dude that's got a car, doesn't just want it cleaned on the outside.
They probably want the inside maintained. They want the dent's removed. And these are the additional value added services that you can add to increase the value, help differentiate yourself and get you closer to that $100,000 a month.
So if you're just starting out, don't feel like, oh my God, you know, fuck, I got to go get 500 customers of $200 bucks a month.
No? No. How about you just go get like,
20, 30, 40 people at 200 bucks a month, and then maximize the amount of money they're spending
with you by maximizing the amount of value you're going to deliver.
And if you're able to do that, and then you start fine-tuning your systems, your lead
generation systems, your conversion systems, your result or fulfillment services and systems,
your retention systems, and then your referral generation systems, now you're on your way
to building a $100,000 a month business.
And this is exactly what I do with my coaching clients in the domination your coaching program.
But they all started somewhere and they continue to scale beyond that $100,000 a month in reoccurring.
Guys, thank you for watching this episode of The Bedros-Cooling and show.
I hope you got a lot of value from this.
If you did, do me a favor, take a screenshot and share this on social media and tag me and I will be sure to reshare it.
Also remember this that averages the enemy.
Success is your responsibility.
And change will take place in an instant if you are willing to flip the switch.
I'll see you next time.
