Emergency service businesses can scale from $360K to $3M+ annually by transitioning from transactional emergency sales to recurring revenue models through strategic upselling, membership programs, and targeted advertising that shifts customers from 'survival' to 'thrive' mindset, thereby increasing customer lifetime value (LTV) and enabling sustainable business growth.
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Helping an ER Nurse Scale a $360K IV Business to $3M追加:
So, my name is Jonathan, huge fan, so a little bit about the situation. I have a 10-month-old new baby.
Uh we just got a house. I have a mortgage.
Um I can't quit my job as a 9-5 emergency room nurse because my business doesn't get enough leads. So, getting this issue solved or being put in the right direction would literally turn around the fate of my family right now.
So, we're going to pay for daycare soon, 1,500 a month. Babies aren't really cheap when they're born, but you know, scales up. It's like ads. Um and then my mortgage is equivalent to my salary every month, which is 6 grand. So, that's why I can't really leave there.
Uh so, we run a mobile IV drips company.
We make 360k per year. We'd like to be at 3 million a year, but what's stopping us is that we don't have enough leads.
We can't figure out our Google Ads and how to target our best customers. And CAC for Google Ads is 278 right now. And what's the what's customer value?
Uh average LTV right now is 454. Mhm.
Blended CAC is 83. Okay. What is the word of mouth?
SEO. Oh.
But to get more scale, we wanted to get ads.
And then I wanted to try Meta Ads. We got a few leads from there, but I took your advice on hammering one channel first up to like a 100k in spend and then going to everything else. Okay.
I don't think you have a CAC issue.
I mean, it could be like realistically, you could probably at a local level get it down to maybe 150, but like Mhm.
>> I don't think that's where the I don't think that's where the the unlock is. I think you have an LTV problem. So, what's the offer What's the offer?
So, that's my thing. I read the offers book front and back. I can't decommoditize myself from everyone else.
We have a $50 off. Everyone has $50 off.
Risk fees if we're not within an hour or within an hour and a half, they're going to go to the next person anyway.
>> Uh-huh. We don't really have like we're there right as fast as we can be.
Sometimes it's within an hour, but if we can't, it's someone else. We can't really like I can't think of a way to risk Speedy's this offer against my competition. I'm actually thinking less about the front end thing and more about the back end thing.
So like Yeah, go ahead.
We do have a package that we upsell, right? So let's say you come in for some type of drip, we're able to sell you either a three drip or six drip package, right? And then that's either 1,000 or 1,500 or up to 2,000.
That I would I would be fine with a 278 CAC if we're able to target the right avatar cuz some avatars would like that.
They're fine with that.
I would If I was able to target the right avatars, I could sell them on a six drip package, get full cash up front, spend more on ads, get more people, but not everyone is as agreeable to the package. Uh-huh.
What percentage of people are taking the upsell today?
>> [snorts] >> 10% maybe. Yeah, what's the offer when you're actually talking to them?
Um have you ever considered instead of rescue, right? Instead of getting a drip when you're hungover or sick, how about we get you a drip a six drip package, then you can get it every time you need it, you prevent getting sick, get a six drip, you get a free add-on, VIP like priority booking, which everybody expects, and then you get I think it's 20% off total price. Okay, so two things. Number one, the hook to get them to ask you more about the upsell is uh so did you want to have today for free?
Mhm.
And then they'll be like, "Wait, what do you mean?" You're like, "Oh, I assume that's what you came in on."
And then they'll be like they'll look a little confused and you'll say, "Oh, what most people do is we have a if you basically sign up for our recurring thing, uh we take today and we just we just credit it towards it, so it's effectively free. Uh and so what most people find is obviously there's hangovers, but you might not know this, but 90% of drip usage is more around uh better rather than getting to feel normal again.
Mhm. And so, you want to stay ahead of it, right? So, just like you go to the chiropractor to get your back cracked once a week, or you go to the whatever you go to the gym, there's you have your internal gym is how I think about it.
And this is basically kind of at the micro micro level microbiome level of fighting, you know, working out all the little cells. Um and that's what you need to do, right? And so, if you feel imagine like you felt shitty and now you feel good, when you do these when you feel good, you'll feel amazing.
Like I've got people who stopped drinking caffeine because they're on these things. I say that, yeah. That's me. I stopped drinking caffeine. Right, there you go. But the But the thing is is that we have to get out of pathology cuz that's the emergency business, and get it You basically you have to get out of the thrive and into the survive Sorry, get out of the survive business and into the thrive business.
Mhm. So, the people who are calling you are calling you because they're in emergency, and that's fine. We just need to flip emergency into ongoing. So, I will say this about the one channel thing. SEO and uh PPC, not a lot of work once you kind of get them working, which you have right now. Like they're like you just kind of just spend the AdSense, right? Like it is what it is. Um we need to work on the back-end sales process what I just went over, but I think that I would actually kind of quote break my rule and say I think you need to run meta ads because you need to sell people who are in thrive mode, who want to feel better, not who should feel shitty to feel normal. Is that the better time?
Those are the people who are going to buy this for the long haul. So, basically, you have inbound high intent base, but their intent is for a a a an emergency solution. We need people who are interruption based, who didn't wake up this morning thinking, "Oh, I'm going to go buy some uh IV drips." You need people who wake up and think, "Man, I feel like [ __ ] in general, and I need to do something." And then those are the people that get interrupted with an ad, and then those are the ones that you can sell.
Is Is way for me to increase like I want a better offer.
I'm just taking 30% off. It kind of reduces the margin a little bit on the It pulls cash up front, but it does reduce the margin. You know, six drips 30% off. Yeah, well what's the price of a drip? And also if you're selling via So here's the other side of it. When you sell with inbound, like intent-based, which is what we're talking about, you're getting price shopped.
If you sell with interruption-based, they didn't wake up looking at six different IV shops.
Right. So you can easily have a 30% premium that you add add one extra widget in there and now you're good to go.
So better offer for them and then I can increase the price for meta ads.
>> Mhm.
Just just just just tweak the offer a little bit. Just add one little thing that's different so you have So ethically you can have two different prices.
Right. And then so I've noticed cuz like I've I've sold to some people pretty well, others better than others. Some people will just go ahead and buy six-pack right away when I mention them rather than others. Is there any way I I would I don't even like selling the packs. I'd rather sell memberships.
But the thing is member like for me like I know monthly recurring revenue is great, but for me the cash up front makes a difference cuz I can go ahead and increase spends on my ads, no?
>> I hear you. You can still sell a membership and then have them prepay the membership.
I get that. So instead of buying six-packs, you're buying six months.
Yeah.
That makes sense. And then it goes month to month afterwards. Yeah.
I like that. Is there any way do you think for me to target my ideal customer with like fractal pricing to to target one group instead of the other? Well you're local, right? Yeah.
>> So the way that you're going to target is with the messaging more than the targeting. so play around with the >> So I would So are you taking a testimonial video from every customer?
We do UGC. When we When we were running meta ads, we do UGC testimonial. Yeah, so every single customer makes an ad for you, right? That's number one.
Number two is the messaging itself in the ad needs to appeal to the thrive not survive customer.
Right? Number three is that the front end offer, we need to make uh basically they're going to come in for whatever, but the pitch to flip them into the membership is like want to make today free, that's what most people do. Just like that. Want to have today free, that's what most people do and they're like how? And now they're leaning in.
Right? Um and then number four, we're going to transition from packs to membership so that we can get the recurring revenue and we can still front load the cash by having them pre-pay for the first quarter.
So start at six months. I mean, you can start at 12, step down to six, step down to three.
Right. Down sell and down sell and down sell. Yeah.
But fundamentally the only way to like you're in a you're an emergency business, right? And so you have to make it's an LTV problem. Like that's the issue here. It's an LTV issue. And so all of this stuff is more so one, get better customers on the front end. Two, have an offer that's paired with that customer on the back end. Now, once that starts happening we may find that we've got way more pricing power on the back and all of a sudden it's not 2K, maybe you can sell 6K's um if we bundle it in a way that that makes it interesting.
Like you like maybe you put a float tank in your van and they like get the IVs while they're floating and you know, and then it's like holy [ __ ] now this thing is like a double like no one else can compare against me. Cuz they want to feel better. So it's like what other things do they need to feel better and I can put that stuff in.
Right. And then hopefully with social will increase our brand and then increase pricing that way.
But how's that sit?
Amazing. Amazing. That I think that I was struggling with to offer everything for a while in leads. I think that changes how I look at meta cuz I was always trying to focus on one channel.
This opened my eyes. Yeah, like SEO and PPC is a great like PPC is where I start a lot of people cuz it's the it's the least work, right? Like you just keep messing with it until you get the sales motion right. Um and they're the hottest leads. So just be prepared that meta leads are going to be I mean, if you did it before, like they're significantly colder than than PVC leads are. So, just this like a preparation.
Mhm. Mhm. Okay. How's Yeah, go ahead.
Do you think I should just increase cuz I I've been holding back on increasing Google spend just because my my cost per acquisition is so high. Do you think I should just increase spend then? To get more customers? I'm fine with increasing spend. We just cuz like don't think about the business as a business today.
The business as it currently exists is an experiment until you get it right.
Mhm. So, don't like I I I know that's hard to like say or you know, hard maybe hard to hear from me, but like right now, we just have to nail the model.
And the only reason for marketing is just so you have reps to practice this offer, the sales motion to get people into the membership. It's the only point of existence right now. Once that gets nailed, you can scale to the [ __ ] moon.
So, the scaling here is just so we get more reps, not cuz we're trying to make more money.
That makes sense. All right. Just a reframe for you. So, it's like, "Oh, we broke even this month." It's like that's not the objective right now.
We have to nail it and then we'll scale to the [ __ ] moon.
That makes sense. Cool. How's How's Vantage been for you so far?
It's a game changer, man. I mean, I I've never been put in a room with like so many like-minded people.
>> Awesome. I've just been capped out by like Twitter and Reddit.
It's your subreddit and there's like five guys in there.
>> [laughter] >> We'll get to that. Well, I appreciate you, man. Thanks for saying so and that's the playbook. All right.
Thank you so much, man. You bet.
Appreciate you.
If you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the $100 million scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly, where they got stuck and how they got past it. And so, we broke it into these 10 stages and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out. On the thank you page, you can book a call with my team and we will look at the business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.
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