How I'd Turn One Event Into $2.5 Million | Ep 1000

The Game with Alex Hormozi

Alex Hormozi interviews Dr. Zyad Asi about scaling his concierge medicine practice, Precision Health Concierge Medicine. After growing reven

Key takeaways

• Dr. Z0yad grew practice revenue from $1.8M to $3M in 18 months with $600K in profit.
• The business lost $55,000 on an ineffective marketing agency before fixing their SEO internally.

Main topics

• Scaling healthcare practices
• Referral marketing systems

Notable quotes

It's just the cost of doing business.

Conclusion

The episode demonstrates how service-based businesses can leverage exi

Transcript preview

Speaker 2 (0:00) My name is Alex Ramosy, and this is Scale or Fail. Speaker 1 (0:11) All right. Tell me about the business. I'm Dr. Ziad Asi, MD. I own Precision Health Concierge Medicine. The business was in business for 18 years before I purchased. I've owned it for the past 18 months. Okay. So when we purchased, revenue was around 1.8 million. We've grown it to 3 million in the last 12 months, profit of 600K, excluding my comp. What comp do you take? Last year, it was about 300. And this year it'll be a little bit more than that. And then three-year revenue goal of $15 million. Cool. Speaker 2 (0:44) How do you get customers right now? Speaker 1 (0:46) Right now, most of it, well, it used to be mostly word of mouth. And over the past four months or so, it's switched to SEO. Speaker 2 (0:53) Yeah. Speaker 1 (0:54) So originally we had a rough first year, issues with the seller and then issues with marketing. So we knew that marketing was our big bottleneck. And so we went out and we... interviewed five and we hired one and uh fifty thousand dollars later and no progress we ended up firing them um and i went on the website i did all this myself um seo turns out on the back end was trash so when we finally found somebody to fix it um they started actually doing their job and the seo converted really well so what's stopping right now from scaling uh it's mainly the the marketing piece um we're just not that good at it it is interesting um the Speaker 2 (1:34) $55,000 on the bad agency and what you were saying earlier about like this Speaker 1 (1:38) motherfucker. Speaker 2 (1:40) So because I see Speaker 1 (1:41) that and Speaker 2 (1:41) I just think, yeah, it's cost Speaker 1 (1:42) of doing business. Speaker 2 (1:42) You know, like it's, I wouldn't even. That was the lesson learned. Yeah. But like, and it doesn't mean agency suck. Like the next one you work with, it worked fine. It's just like, it's just part of the game. It's just, you have margins so that you can try out a couple until one works. What do you think is going to get in the way of scaling for you? Speaker 1 (1:59) The landscape is changing pretty quickly. And if we are not doing it correctly, it can fall apart pretty quickly. The technology aspect, just from when we started, the technology has improved so rapidly. If we don't do it properly, every practice that we go into that we don't do well could cost us months to a year or whatever that is when we're small and the competitors are going to eat us up. Okay. Do you not agree? Speaker 2 (2:28) I'm all for having a lot of urgency. I think people are Speaker 1 (2:31) going Speaker 2 (2:31) to keep getting sick for a long time. Yeah. And I like, if I were to bet on industries, I think healthcare is fine. They're like, which ones are going to get disrupted? They're going to have more time to themselves. And I think. Speaker 2 (2:43) there's also a high end component to this, which is like you're servicing people who have money. And I think generic healthcare will change a lot with AI, your GPs, Speaker 1 (2:53) your general practitioners, et cetera. Speaker 2 (2:55) People will always be willing to pay more. There always will be a slice. All right. Well, let's, let's sit down and figure out a skill. Let's think. Speaker 2 (3:09) Okay. So I really think there's, call it three real things to cover and that's kind of it. All right. So the first is how can we speed up the referral machine? Right. And so the question is right now, what are you doing? Obviously you're getting word of mouth, but what are you doing in order to lubricate or facilitate it? Speaker 1 (3:31) So we need to do more open houses. We did two. The one open house, we offered members a $500 credit for both the member and the new signup. And then we did some raffles, gave some people some free stuff. So we introduced them to some of the aesthetics. I love the giveaway. If you want to have Speaker 2 (3:47) like way more people participate, just give a year of Speaker 1 (3:49) the Speaker 2 (3:49) service away. Just a full year of your optimized health. That would be my grand prize. The second place prize. And the way I'm thinking about this is like, we want, you want every referral to have a great reason to tell a friend for the customers that you have $500 probably makes no difference, right? They're probably going to refer you anyways. So, and you just asking is what facilitated it, but to like make it so that it's social capital positive rather than neutral, I'd, it'd be better to do either. Your friend gets some real treatment, some actual thing that's like a body optimization, whatever, or the six month supplement thing or that, or. uh, you both get it as like, if you, if you refer a friend, you get this treatment. The, the shtick is that it's a thousand dollar, $2,000 type, I would say type ticket. Um, but your cost on this can be way less than that. Obviously it's just a way better reason to come in. Yeah. Right. And it's only for referrals. So it's Speaker 1 (4:43) not Speaker 2 (4:43) like we're running that as ads. So Speaker 1 (4:44) you Speaker 2 (4:44) just have like, you Speaker 1 (4:45) know, Speaker 2 (4:45) Tom Dick and Sally coming off the Speaker 1 (4:47) street who are like, Oh, I heard I got a coupon for like, that's not Speaker 2 (4:49) what you're looking Speaker 1 (4:50) for. But Speaker 2 (4:50) it's like anybody who's an existing, like it could even be a perk. to me, kind of like at a gym, you can bring a plus one, that idea. But if you are, call it our, you have our 5K membership, you get five times our $2,000 one-off treatment or $1,000 one-off treatment that you can give to your friends and have them come in with you to do it. To me, that's like a much more compelling offer. Speaker 1 (5:19) And Speaker 2 (5:19) then what this does is that it allows you that every touch point, we can ask them about it. So it's like we have the of the immediate close, right? So this is kind of point number one that you can make it. So you just closed them. You're like, hey, by the way, a lot of people like to do some of these treatments together because a lot of fun. And so because you're now one of these members, you're going to be able to bring a friend with you at each of these four instances. And Speaker 1 (5:43) so whenever they book it, Speaker 2 (5:44) ask what friend they Speaker 1 (5:45) want to bring. Speaker 2 (5:46) You Speaker 1 (5:46) like that? Yeah. It'd be a, it'd be a great way because our aesthetics business is pretty much completely untapped. And so that would be a great way. It's easy Speaker 2 (5:54) to do. And like people who Speaker 1 (5:56) are investing in that, typically there's strong crossover. Yeah. Speaker 2 (5:59) Um, the second is, what is there, what wow, what moment are people like, whoa, like, you know, what is that wow moment in the patient journey? Speaker 1 (6:09) Uh, it's a little bit different for everybody. Um, so like, you know, the average 50 year old guy who thinks he's perfectly healthy and he comes back in and four or five months and he's like, dude, I haven't felt this good in years. And I'm like, yeah, it's cause you didn't know you were feeling like crap now that we've actually fixed all these things or like, you know, the 80 year old patient who, um, you know, lost a bunch of muscle mass and could barely walk. And now that we've used whatever treatments we have and they're like, wow, you know, I actually got my independence back. Do Speaker 2 (6:37) you do? Love that. Do you do, what cadence of Speaker 1 (6:42) touch points do you have with patients? The older demographic usually starts out at a much higher cadence. At like 60 days and then 90 days. And then we kick it out. As we optimize, we kick it out. And then younger people. So like if you signed up,