This Health Business Was Stuck at $4.5M. The Problem Wasn't Marketing.

So the business is doing 4 million top line, okay? So $4 million revenue, and that's actually down from the previous 12 months.

So what's been going on here? Well, let's dive in.

So 4 million top line's not bad.

The problem though, is that their cost to book a consult is in the neighborhood of four to $600.

Not too bad, but again, a little bit high.

But here's the thing, is that this is leading to a paid consult of $97, okay? Okay, so they're losing money for every consult they're booking.

Not the end of the world, but what's happening beneath that? Well, on these calls, about one in four people is enrolling.

So their cost to acquire a client is $2,000 plus, and we'll call that CAC, cost to acquire a client or a patient.

Their cost to acquire a client is about $2,000.

Now, they're charging...

For their service, about $9,000.

So the margin here between these two is not too bad, right? So about 4X, 4.5X LTV to CAC.

Now, I'm just using LTV here as the front end offer, right? I'm not worrying about backend, which, you know, we'll save for a different conversation.

So on the surface, that doesn't look too bad, right? You're making four to one, assuming people pay up front and, you know, four and a half to one, whatever.

So what's the issue here? The issue here is that this business is, you know, it has some operational drag.

It has people, it has delivery costs and so forth.