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Building a $12,000,000 Business for a Stranger in 25 Minutes

Alex HormoziFebruary 28, 202624m
In a Nutshell

Joel McDonald’s $6.4M/year Just Get Out of Town (Joot) business teaches "travel hedging" to stretch everyday spending into 3-10x vacations using 2-3 optimized credit cards, but it's demand-constrained, relying 85% on Meta ads hitting a $100k/month ceiling. Alexi from acquisition.com advises unlocking UGC loops for viral TikTok-style videos (client trip photos with incentives), diversifying avatars via AI variations and creative kaleidoscopes, and scaling sales with power dialers, lead scoring on travel/credit spend, and frontloaded "damaging admissions" to counter skepticism—targeting 300 daily leads with a 6-rep team for $300/day/rep KPIs. This dual ad/conversion attack aims to double revenue to $12M by improving LTV:CAC from 1.4:1 and adding channels like affiliates/charities.

AI-Generated Notes

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Joel McDonald runs Just Get Out of Town (aka Joot), a coaching and course business teaching people to use credit cards for vacations. He's dependent on one platform, risking business collapse if it disappears. Alexi, founder of acquisition.com, helps businesses scale.

Hey, Alex. I'm Joel McDonald, founder of Just Get Out of Town, also known as Joot.

Business description: Helps travelers turn everyday expenses into multiple bucket list vacations yearly. Largest audience: retirees, empty nesters, business owners.

Travel hedging (differentiated from travel hacking): Stretches vacation budgets 3-10x. Travel hacking requires 10-20 credit cards yearly, creating bad associations. Travel hedging: Choose 2-3 best cards for individual spending profile and use effectively.

Current state:

  • Trailing 12-month revenue: $6.4 million
  • Profit margin: 1.9 million (30%)
  • ROAZ: 4.5:1
  • LTV:CAC: 1.4:1 (want to improve)

12,000 clients via mini memberships or high-ticket coaching. Goal: 10,000 more clients next year. Diversify advertising, add affiliate partnerships and charities (goal: $1 million donated via charity partnerships). Need to double revenue.

85% from book funnel. 10% from conferences, meetups, guest podcasting (beefing up). 5% from affiliates/charity partnerships (in infancy).

Problems:

  1. Single-channel advertising: 85% on Meta, ceiling at $100k/month ad spend. Spent $150k last month for 10% extra book sales (loss leader, 6 months to break even with backend).

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