Key Moments
Fix Your Business in 90 Days, Win $100,000 - Episode 2
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Key Moments
A sticker-making educator with a $800K annual business is selected for a 90-day growth challenge, aiming to secure a $100,000 prize by scaling her operations through aggressive ad strategies and an improved offer.
Key Insights
Mim Jenkinson's business generated approximately $800,000 USD in revenue over the last 12 months with a 30-35% profit margin.
Her current primary sales funnel involves live paid bootcamps ($37 entry fee) with a 22% conversion rate into her 'Secret Sticker Society' membership ($27/month or $270/year).
The business's primary bottleneck to scaling is a perceived limitation in ad spend and a conservative approach to Customer Acquisition Cost (CAC), with typical CAC capping around $50.
A key strategy proposed is to incentivize user-generated content (UGC) by rewarding members who post videos of themselves making stickers, creating a constant stream of ad material.
Hormozi challenges Mim to be willing to spend up to $100 on CAC, a significant increase from her current comfort level, to drive higher volume.
A proposed 'wild test' involves positioning the paid boot camp not as a direct sale but as a 7-day free trial of the membership, aiming for 100% traffic conversion into the trial.
The 'Scale or Fail' competition and Mim's business
The episode features Mim Jenkinson, a business owner who teaches crafters how to make stickers and has built a successful seven-figure business doing so. Having overcome breast cancer a decade ago, Mim started her business as a creative outlet and has since taught over 20,000 people worldwide. Her business model primarily consists of low-ticket digital products, with her main offering being the 'Secret Sticker Society' membership. For the past 12 months, she has generated approximately $1.1 million Australian dollars (roughly $800,000 USD) in revenue with a healthy profit margin of 30-35%. Her ambitious goal is to reach $3 million USD per year within the next three years. Mim's participation in the 'Scale or Fail' competition centers on her desire to scale her business significantly, driven by a personal motivation to secure her family's financial future.
Current sales funnel and conversion metrics
Mim's established sales funnel relies on live paid bootcamps, which she launches three times a year, acting as the primary entry point for her 'Secret Sticker Society' membership. The bootcamps cost $37, and she reports an impressive 22% conversion rate from bootcamp attendees to her monthly membership. She also offers various low-ticket digital products as upsells. Her average order value (AOV) hovers around $36. While some events result in a slight loss initially, she aims to achieve profitability by the end of the event, with some bootcamps being profitable from day one. She acknowledges having a strong 'upsell game' which helps offset customer acquisition costs (CAC).
Identifying the scaling bottleneck: Ad spend and CAC
The core challenge Mim faces in scaling is her hesitancy to increase ad spend and her conservative approach to CAC. Despite having a profitable business and a strong conversion rate, she often caps her ad spend for no clear reason, leading to missed opportunities during launches. Her CAC has reached a maximum of $50, and she admits to finishing launches thinking she 'should have spent more.' Alex Hormozi identifies this as a 'pure demand issue,' meaning her business infrastructure can handle increased customer volume without breaking. The key obstacle is therefore psychological: a fear of overspending or a lack of confidence in pushing higher ad budgets, which prevents her from reaching her business's true potential. Hormozi's primary directive is to increase her willingness to spend on customer acquisition.
Strategies for increasing ad volume and creative output
To overcome the ad spend limitation, Hormozi proposes a multi-pronged approach to creative generation and ad strategy. He emphasizes thinking in 'hundreds' for ad creatives, suggesting leveraging user-generated content (UGC) from Mim's existing community. This includes encouraging members to share videos of themselves making stickers (potentially incentivized with exclusive sticker sets) and using screenshots of completed stickers as static ads. Hormozi also advises Mim to create more ad variations featuring herself in different settings and backgrounds, aiming for around 80 new ads. Utilizing AI tools is also recommended for faster creative production. The overall goal is to produce a significantly larger volume of diverse ad creatives to fuel more aggressive ad campaigns and test more ad angles.
Leveraging the five levels of awareness for broader targeting
Hormozi introduces Eugene Schwartz's 'five levels of awareness' framework to help Mim scale her advertising beyond just her most engaged audience. He explains that current ads may be too 'product aware' or 'offer aware,' limiting their reach. To scale effectively, the advertising needs to target audiences who are more 'pain aware' and 'problem aware.' This means shifting hooks and messaging to address the underlying problems or desires that lead people to want to make stickers (e.g., 'Are you bored?', 'Do you need a creative outlet?'). By expanding the targeting to these higher levels of awareness, Mim can potentially tap into a much larger audience, thus increasing the volume of potential customers and justifying higher ad spend. This strategy aims to prevent ad performance from plateauing or declining as ad spend increases.
Offer optimization: annual membership and physical bundles
A significant adjustment to Mim's offer strategy involves prioritizing the annual membership. Previously, only 5-15% of customers opted for the annual plan; after focusing solely on the annual offer in a previous launch, this figure jumped to 30%. Hormozi suggests making the annual membership the sole offer during launches and enhancing its value with bonuses. Specifically, he proposes creating a physical bundle, including essential sticker-making supplies like sticker paper, which can be presented as a high-margin upsell or included as a premium bonus for the annual subscription. This physical bundle could be priced around $99. The strategy is to make the annual offer so compelling, especially with the addition of physical goods, that it significantly increases the average order value (AOV) and commitment, potentially driving the AOV to $300 or more. This higher AOV provides more confidence to increase ad spend.
The 'wild test': a trial as the front-end offer
The most daring test proposed is to reframe the paid boot camp as a 7-day free trial of the 'Secret Sticker Society' membership. Instead of a $37 entry fee, traffic would be directed to sign up for a free trial, aiming for a 100% conversion rate of initial traffic into trial users, compared to the current 22% into paid bootcamps. This approach aims to drastically improve the front-end conversion and onboarding experience. The 'wild idea' is to have members sign up for the trial and then aggressively upsell them to the annual membership during the trial period, leveraging the value of the physical bundle as an incentive. This strategy acknowledges that while many may churn after the trial, the increased conversion rate and the potential for higher lifetime value (LTV) from those who convert to annual could significantly boost overall profitability and revenue, potentially increasing LTV by 50-60%.
Decision: Scaling with a refined strategy
Ultimately, Mim Jenkinson is chosen to 'scale' and will work with Hormozi's team for a year, aiming to win the $100,000 prize by demonstrating the most growth over 90 days. The plan involves a refined spend cadence, emphasizing a larger portion of the budget in the middle weeks of a launch, with a significant increase in creative testing and volume. Key actions include implementing pain-based hooks, expanding ad creatives, increasing willingness to spend up to $100 on CAC, and running the 'trial as front-end offer' test or a similar offer optimization strategy. Mim expresses confidence in her ability to implement the advice, feeling no resistance to the proposed strategies. Hormozi believes the proposed changes, particularly around offer structure and ad spend, have the potential to significantly increase Mim's business revenue, possibly by 5x to 10x, by making the math work in a media arbitrage business model.
Mentioned in This Episode
●Software & Apps
●People Referenced
Mim Jenkinson's Business Metrics and Proposed Changes
Data extracted from this episode
| Metric/Offer | Current State | Proposed Change |
|---|---|---|
| Annual Revenue (Last 12 Months) | 1.1 Million AUD (~$800K USD) | Target $3 Million USD/year in 3 years |
| Profit Margin | 30-35% | N/A |
| Main Offer | Live paid boot camp ($10 ticket, $37 paid challenge) | Annual membership only for next launch |
| Membership Conversion Rate | 22% from ticket buyers | Potentially 100% conversion via free 7-day trial |
| Average Order Value (AOV) | $36 | Doubled to $91 by pushing annual membership |
| Ad Spend | $16k last launch | Increase spend significantly, willing to spend up to $100 CPA |
| Creative Volume | 2 images/2 videos for hook test | Aim for hundreds of static ads, 80 ads from personal content |
| Targeting Strategy | Product/offer aware audiences | Shift to pain/problem-aware audiences |
| Offer Bump | $47 course (30% conversion) | Offer physical bundle for $99-$149, include with annual membership |
| Wild Idea 1 | N/A | Sell only annual, offer physical bundle, make monthly a decoy offer post-launch |
| Wild Idea 2 | N/A | Position boot camp as a 7-day trial of $27 membership |
Common Questions
Mim Jenkinson operates a business focused on teaching crafters how to make stickers through low-ticket digital products and a main membership called 'Secret Sticker Society'. She utilizes a funnel that includes live paid boot camps to drive membership sales with upsells.
Topics
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