My Business Isn't Making Money
A founder with a rental relocation service for Netherlands-bound movers has 300 free users but zero revenue and only three phone calls with potential customers. An advisor points out that the real problem is not product development but a near-total absence of sales conversations. The advisor argues that taking hundreds of calls would both generate revenue and reveal what customers actually want.
Summary
The transcript features a brief but pointed exchange between a struggling founder and an advisor. The founder has built a software-based rental relocation service targeting people moving to the Netherlands. Despite having approximately 300 free users acquired through organic lead generation — roughly five new users per day — the business has made zero dollars, with almost no conversions to the paid offering. The founder acknowledges that without paying customers, they will need to return to traditional employment within about a year.
The advisor quickly identifies that the founder has already solved one of the hardest problems in early-stage business: free lead generation. However, the founder has only spoken with three of their 300 users on the phone, which the advisor characterizes as a critical and avoidable mistake. The advisor argues that the volume of sales conversations is the missing variable, not product refinement or further software development. According to the advisor, if the founder were to conduct 500 calls over the next three months, two outcomes would almost certainly follow: the business would start generating revenue, and the founder would gain direct, real-world insight into what users actually need — insight that no amount of computer tinkering can replicate. The core message is that the founder is spending time on the wrong activity.
Key Insights
- The founder has approximately 300 free users generating zero revenue, having converted almost none of them to the paid offer despite steady daily inflow of new signups.
- The advisor frames free lead generation as 'the hardest part to crack,' giving the founder significant credit for solving it — while noting the sales side is being completely neglected.
- The founder has only gotten on the phone with three out of 300 users, which the advisor explicitly calls 'silly' given the volume of inbound interest available to them.
- The advisor claims that taking 500 calls over three months would almost certainly produce both revenue and deep customer insight, framing call volume as a near-guaranteed path to results.
- The advisor argues that continued software development ('tinkering on the computer') is not the solution to the business's problems — direct customer conversations are.
Topics
Transcript
[0:00] Uh, we make zero dollars at this point, but barely any conversions to the paid offer. I sell rental relocation services to people who want to move to the Netherlands. Um, so if I can't get paying customers, I'll basically have to get back to having a job in about a year. But >> so it's a software thing that you built. Okay, >> that's it. Yeah, >> you have free lead genen, which is the hardest part to crack. So kudos to you for doing that. How many of them have you got on the phone with? >> Um, so in total just three. >> We usually didn't make dollars right now. You've got a flow that's coming…
Full transcript available for MurmurCast members
Sign Up to AccessMore from Alex Hormozi
Why His Close Rate Won't Budge...
A business owner running a marketing and sales company struggles with a low close rate on sales calls, where prospects either can't afford the first payment or can't get financing approved. The advisor suggests the issue may be a lead qualification problem rather than a sales problem. Adding funnel qualifications is proposed as the key solution to improve profitability.
How I Define Culture In An Organisation
The speaker defines organizational culture as the spoken and unspoken rules that govern reinforcement — determining what gets rewarded, ignored, or punished. They outline two approaches to codifying culture: a comprehensive rule-based codification or a faster values-based approach using a few core statements. Values are described as 'chunked up rules' that, when unpacked, reveal underlying behaviors.
Your Competitor Is Cheaper”
The speaker addresses the objection that a competitor is cheaper by reframing the conversation around risk-adjusted return. Rather than focusing on price alone, they argue that a lower-cost option carries greater risk of failing to deliver results. The penny stock vs. Apple stock analogy is used to illustrate this point.
Profit Is Unnatural
A mentor described as a 70-something year old billionaire shared the counterintuitive idea that profit is unnatural. He argued that businesses naturally drift toward spending away their profits over time, and that maintaining profitability requires deliberate, ruthless expense control by a dedicated person.
My Founder Story
Alex Hormozi recounts his entrepreneurial journey from a consulting job to building a portfolio of companies generating over $250 million in aggregate annual revenue. He details his failures, pivots, and major exits, including selling Gym Launch and Prestige Labs for $46.2 million. The transcript serves as both a personal origin story and a pitch for his brand, acquisition.com.