020 — Project 37 Nets More Than $12,730+ MRR (Monthly Recurring Revenue)
Project 37 has been the most successful experiment to date
Speaker 1 (00:01):
Project 37, setting out to acquire 37, at least 37 new recurring clients by December 31st. And we started it, it in or on September 1st, 2022. It is now December 18th, Sunday, December 18th. And we're going to go through and see who has or how we've done so far. Um, let me hop into Neutrally plus here.
(00:35)
We had our first project, 37 client make its way all the way to the seventh payment, meaning that they've had seven completed visits with us, seven successfully completed visits with us. I found that after that point, that's when our client lifetime value really starts to, excuse me, really starts to go through the roof. So I, um, I made it a point to <laugh> focus on that, find those recurring clients and, and focus on getting them to their seventh visit, their eighth visit, and then, um, incentivizing our team along the way for doing that. So in here, in our pipeline, in Nurture League plus everyone who's had at least three visits, I can see. All right, 1, 2, 3, 6 plus eight is 14. There's 14 there who've already had their third visit. Let me write that down. 14, I forget it. And then, and the pipeline still of ones that we have, just the people that we have just signed. There are 33, that's project 37 only. What is that? 47? I'm pretty sure it is. I just don't trust myself. <laugh> right now. Not right now. Okay. 47 new. So let's take a look at our 14 that we have because I have, once they do their third visit with us, I update, um, what their average monthly value is,
(02:24)
Uh, here in, in the pipeline. So that way I can just kind of estimate the value of, of the revenue we brought in, um, from these clients. So across these 14 zero plus zero, oops. Okay, 1 0 8, 0 plus
Speaker 2 (02:52):
Two.
Speaker 1 (02:58):
Okay. Across those 14 clients, they are worth $4,146 per month. Some of them are, uh, weekly, some of them are biweekly and some of them are monthly. So if they are a weekly client and they pay us, you know, $120, let me write this number down, and they pay us $120, uh, I multiply that by 4.2. The average, uh, number of weeks in a, uh, month is 4.2. It's not the same. And I'm not dealing with that rhyme to remember how many like days are in the, in the month. So it's not gonna even help me with how many weeks are. So I just kind of extrapolate it out to give me a rough idea of how successful this is. Because I, recurring revenue is what I'm going after. Yes, I want like the, the overall, the gross revenue must, must increase. Um, but I will get more excited about closing recurring clients than I will about like signing the, um, very big, uh, one time deep cleans.
(04:01)
Those are exciting. Those are fun, don't get me wrong one bit. But the recurring ones, I mean, I can see on here that they, the average value of them is, is, is creeping north of $2,000. So, uh, winning one of those clients is just the same as winning, uh, one of those fresh starts in my opinion. So over these 14, that, that have already completed three payments with us or already completed three visits, they are worth 4,100 or, yeah, $4,146 per month. If I divide that by itself by 14, that gives me a total of 2 96 on average of those that we have brought in and they've completed their third payment already. They're happy with us. We're trying to get to seven. Remember, they are worth 2 96 a month, and that's scattered across Weeklys biweeklies a month, please. Now we have 33 still in the pipeline, um, that haven't made it to their third payment yet.
(05:09)
And the third is just kind of like somewhat the halfway point in this, uh, in, in this whole project, I guess, or this, yeah, this is project 37, but the whole process is like it's commission tracking. Um, we have 33 left. Now, if, if, let me see how many we've lost actually total out of these 47, 1, 2, 3, there have been 4, 3, 3, um, two of them were lost because they, they were mislabeled as recurring in here, I think. Um, and I gave them credit for it, <laugh>, but there is one in here. I know for sure that was unsatisfied with the clean. Um, that was a like end of October, mid-November. Um, major bummer. I don't like cancellations ever, but one out of 50 is, is not bad for now. Um, so if I go to 30, project 37, we have 33 in here. The ones we already have are worth 2 96 a month. We're not gonna win all 33, let's just take it down to 29. We're gonna lose four, let's say.
(06:24)
So 29 times 2 96 gives me a total of 85, 84. That's basically everyone that we've just recently signed and we're working on getting them to their seventh visit, but they haven't done their third visit quite yet. Um, that number is 85 84, add that to 41 46. And that brings the project 37 total to $12,730 gross revenue every single month we've generated. Okay, just from project 37. Um, like I said, that 33, we have 33, I went off 29 in the pipeline. Um, and that is of course extrapolating out based on the numbers that we have right now. So in my opinion, this has been a tremendous success.
(07:21)
In less than three months, we were able to add more than six figures to our bottom line and not bottom line. Forgive me, top line gross revenue. Um, and just soak up the recurring clients. Again, we're not in a very big area, a rural area at all. It's, or excuse me, in an urban area, we're in a very rural area. Uh, in my opinion, mid-Michigan is, is not a sprawling metropolis. And if you're close to any, any metro area and you are thinking about starting a cleaning company, the demand is there. Just make sure you price yourself what price what you're worth. Don't go below anything like $45 an hour. Do not go below that because people will pay happily pay that price. But if you price too low, all you are just gonna soak up the cheap clients and then you are gonna leave ev all the good high paying clients to the rest of us.
(08:13)
Do not price yourself too low. Do not undervalue yourself Start at $45 an hour minimum. In my opinion, that's still too low. But I know that there are a lot of people that are still only charging 20 and 25. So doubling your prices is gonna hurt for, it's gonna feel like it's gonna hurt. I should say. Forgive me, you'll be glad you did. There are a lot of people that are willing to, to pay your prices. So Project 37, again is a major, major success. $12,730 a month added to our gross revenue, our top line revenue just in two and a half months of, of this experiment. Basically. Let's do it again, January one. Talk to y'all soon. Love ya.
