WEBVTT
1
00:00:00.211 --> 00:00:03.875
Today, I want to talk about the state of the home service industry.
2
00:00:04.195 --> 00:00:06.757
Not hype, not headlines, not fear.
3
00:00:07.178 --> 00:00:08.639
Just what's actually happening.
4
00:00:08.819 --> 00:00:11.401
Customer acquisition cost is getting more expensive.
5
00:00:11.642 --> 00:00:12.723
Labor is shifting.
6
00:00:12.983 --> 00:00:14.424
AI is changing search.
7
00:00:14.644 --> 00:00:16.226
Consumers are more cautious.
8
00:00:16.646 --> 00:00:20.350
And the operators who win in 2026 won't be the busiest...
9
00:00:20.790 --> 00:00:22.011
they'll be the most disciplined.
10
00:00:22.272 --> 00:00:30.901
The businesses that grow without breaking this year will fill capacity, protect margins, increase revenue quality, and install real systems.
11
00:00:31.562 --> 00:00:32.723
So I wrote two letters.
12
00:00:33.544 --> 00:00:37.107
One is the HomeWorks Community, and the other is to Augusta Nation.
13
00:00:37.708 --> 00:00:43.010
Both are really about the same thing, how to operate professionally in a tightening market.
14
00:00:43.610 --> 00:00:47.191
I'm going to read the homeworks letter first, and then the Augusta letter.
15
00:00:47.651 --> 00:00:48.151
Let's begin.
16
00:00:48.432 --> 00:00:56.474
Home service businesses are entering a different era, not because the trades themselves are changing, but because the environment around them is shifting.
17
00:00:57.194 --> 00:01:00.235
Customer acquisition cost is getting more expensive.
18
00:01:00.836 --> 00:01:02.596
Consumers are more cautious.
19
00:01:03.176 --> 00:01:04.797
The real estate market is softening.
20
00:01:05.397 --> 00:01:14.222
The operators who grow without breaking in 2026 will be the ones who stay calm and disciplined while others get distracted by headlines.
21
00:01:14.322 --> 00:01:18.384
If I had to name the villain in 2026, it would be hesitation.
22
00:01:19.105 --> 00:01:20.705
Hesitation around raising prices.
23
00:01:21.366 --> 00:01:23.047
Hesitation around selling.
24
00:01:23.627 --> 00:01:26.389
Hesitation driven by negative economic news.
25
00:01:27.229 --> 00:01:29.290
Consumer sentiment feels softer.
26
00:01:29.890 --> 00:01:33.531
Headlines include record levels of consumer credit card debt.
27
00:01:34.091 --> 00:01:36.591
Media cycles amplify every downturn.
28
00:01:37.392 --> 00:01:41.793
It becomes tempting to respond by discounting or shrinking back.
29
00:01:41.993 --> 00:01:42.773
That is a mistake.
30
00:01:43.513 --> 00:01:47.914
If you do not have at least one month of cash in the bank, go into profit mode.
31
00:01:48.555 --> 00:01:50.575
I do not care what economics are saying.
32
00:01:50.595 --> 00:01:51.795
I don't care about what politicians are forecasting.
33
00:01:51.815 --> 00:01:53.896
I don't care what politicians are forecasting.
34
00:01:54.476 --> 00:01:58.277
Your job is not to predict GDP, gross domestic product.
35
00:01:59.037 --> 00:02:02.218
Your job is to build a business that can ignore the noise.
36
00:02:02.878 --> 00:02:03.918
Filter capacity.
37
00:02:04.478 --> 00:02:07.259
Make sure every truck and every employee is used full-time.
38
00:02:07.879 --> 00:02:09.919
Raise prices when your capacity is full.
39
00:02:10.519 --> 00:02:12.080
Improve your revenue quality.
40
00:02:12.600 --> 00:02:15.500
Move from one-time revenue to recurring revenue.
41
00:02:16.160 --> 00:02:19.021
That progression is how you build stability.
42
00:02:19.721 --> 00:02:26.404
The operators who commit to that discipline will not feel fragile, even if the headlines feel chaotic.
43
00:02:26.784 --> 00:02:30.826
Another economic shift is unfolding, one worth addressing directly.
44
00:02:31.506 --> 00:02:38.729
If you started your business in 2020, 2021, 2022, you likely experienced a very specific constraint.
45
00:02:39.269 --> 00:02:40.369
Demand was abundant.
46
00:02:40.850 --> 00:02:41.690
Leads poured in.
47
00:02:42.070 --> 00:02:43.711
The phone was ringing off the hook.
48
00:02:44.231 --> 00:02:46.132
The primary bottleneck was labor.
49
00:02:46.732 --> 00:02:48.693
The hardest part was not getting work.
50
00:02:49.094 --> 00:02:51.435
It was finding people to keep up with it.
51
00:02:51.995 --> 00:02:53.576
We were supply constrained.
52
00:02:54.016 --> 00:02:55.597
We could not find employees.
53
00:02:56.478 --> 00:02:59.559
I believe 2026 begins to flip that dynamic.
54
00:02:59.960 --> 00:03:06.083
As the labor market softens and unemployment ticks upward, the constraint will not be, can I find anyone at all?
55
00:03:06.563 --> 00:03:09.325
The constraint will become, can I filter effectively?
56
00:03:10.045 --> 00:03:15.530
Instead of struggling to get three applicants, you might get 50 or 60 in a few days.
57
00:03:16.230 --> 00:03:19.433
The game becomes screening, not searching.
58
00:03:20.133 --> 00:03:21.394
This is where systems matter.
59
00:03:22.035 --> 00:03:26.398
HomeWorks already includes automations that many members are underutilizing.
60
00:03:26.779 --> 00:03:30.142
Hex reminders dramatically increase interview show-up rates.
61
00:03:30.742 --> 00:03:35.004
You can create an applicant customer type and set up automated reminders.
62
00:03:35.465 --> 00:03:41.488
Structured application questions filter candidates before you waste time on in-person interviews.
63
00:03:42.328 --> 00:03:43.589
Use video submissions.
64
00:03:44.169 --> 00:03:49.933
Screen for professionalism and communication before you even schedule an in-person meeting.
65
00:03:50.133 --> 00:03:54.895
When applicant volume rises, interviewing more people is not the solution.
66
00:03:55.736 --> 00:03:59.218
Filtering faster and selecting better is the solution.
67
00:03:59.998 --> 00:04:06.562
The operators who install hiring systems now will move more quickly, while others drown in applicant noise.
68
00:04:07.463 --> 00:04:10.565
Hiring becomes a numbers game if you have no system.
69
00:04:11.205 --> 00:04:15.328
Quality drops when you blindly invite 50 people to an interview.
70
00:04:15.828 --> 00:04:16.669
Show rate drops.
71
00:04:17.209 --> 00:04:22.613
At the same time, as labor becomes more available, demand does not automatically increase.
72
00:04:23.293 --> 00:04:24.994
Demand becomes competitive.
73
00:04:25.534 --> 00:04:34.258
For many local markets with real estate prices down or softened, consumers feel less inclined to spend on home renovations or improvements.
74
00:04:34.838 --> 00:04:38.880
For many home service businesses, we will become demand-constrained.
75
00:04:39.460 --> 00:04:44.562
The leads constraint in the 4L framework will keep many businesses from growth.
76
00:04:44.722 --> 00:04:45.862
Which brings us to marketing.
77
00:04:46.343 --> 00:04:51.385
Across the industry, advertising platforms are layering in more AI-driven settings.
78
00:04:52.145 --> 00:04:55.266
Many of these features are optimized to increase spend.
79
00:04:55.747 --> 00:05:03.430
They promise efficiency, but without proper tracking and configuration, they often dilute lead quality while increasing your budget.
80
00:05:03.730 --> 00:05:08.752
If you're running Meta or Google Ads without proper tracking installed, you are not marketing.
81
00:05:09.292 --> 00:05:09.952
You are guessing.
82
00:05:10.293 --> 00:05:12.594
Install the Facebook pixel on your website.
83
00:05:12.934 --> 00:05:15.456
Get Google tracking codes configured properly.
84
00:05:15.636 --> 00:05:21.760
You need real conversion tracking tied to booked jobs, not just clicks or estimate request forms.
85
00:05:22.080 --> 00:05:24.581
You need disciplined negative keyword management.
86
00:05:25.002 --> 00:05:26.543
You need geographic filtering.
87
00:05:26.943 --> 00:05:29.845
You need to understand where every marketing dollar is going.
88
00:05:30.725 --> 00:05:32.367
It is a general industry reality.
89
00:05:32.767 --> 00:05:37.353
Most operators are still flying blind when it comes to paid traffic.
90
00:05:37.493 --> 00:05:40.016
In 2026, it will become more expensive.
91
00:05:40.436 --> 00:05:46.022
The gap will widen between those who track precisely and those who rely on default AI settings.
92
00:05:46.763 --> 00:05:52.507
Professional advertisers who understand these systems are becoming more valuable, not less.
93
00:05:53.187 --> 00:06:00.312
If you are, one, spending over $1,000 per month in ads, or two, in growth mode, hire a professional.
94
00:06:00.993 --> 00:06:07.617
But I also want to address something I see consistently across home services that is even more painful than poor tracking.
95
00:06:07.937 --> 00:06:16.023
I see people wasting money on advertising when they have not exhausted the leads and revenue already sitting inside their business.
96
00:06:16.623 --> 00:06:20.607
Before I spend a single dollar on ads, I will do several things first.
97
00:06:21.187 --> 00:06:30.455
The first is building automations and homeworks that send text and email to customers multiple times in the first couple of weeks after an estimate is sent.
98
00:06:30.775 --> 00:06:36.741
If you send an estimate and hope the customer just gets back to you, you are choosing a silent loss.
99
00:06:37.361 --> 00:06:41.385
The second is a phone call follow-up on every pending estimate.
100
00:06:41.905 --> 00:06:49.491
So text, emails, and phone calls together ensure that we do not have customers ghosting us and estimates left pending.
101
00:06:49.671 --> 00:06:57.438
Consistently, across the board, inside HomeWorks, more than 20% of customers open an estimate and we never hear back from that customer.
102
00:06:57.798 --> 00:07:00.441
That is not because those customers were never interested.
103
00:07:00.881 --> 00:07:08.508
It's usually because there was no automation and no follow-up phone call to answer questions, overcome objections, and schedule the job.
104
00:07:08.808 --> 00:07:13.553
If you want more work, stop losing the work you already earned the right to close.
105
00:07:13.693 --> 00:07:18.297
The third is upselling your existing customer base through text and email blasts.
106
00:07:18.798 --> 00:07:22.822
Until July, text will remain free and unlimited inside HomeWorks.
107
00:07:23.342 --> 00:07:27.286
No other platform allows unfettered, unlimited texting without payment.
108
00:07:27.707 --> 00:07:37.436
In the future, we will have to meter this and pass along the hard costs that Twilio charges us for every text message, the same way that Stripe charges for processing fees.
109
00:07:38.157 --> 00:07:41.781
We have incurred the cost for years to serve early adopters of homeworks.
110
00:07:42.181 --> 00:07:48.386
Starting in July, we'll have to charge for those and pass that cost along based on what Twilio charges us.
111
00:07:48.807 --> 00:07:50.368
But for now, texts are free.
112
00:07:50.888 --> 00:07:53.811
Mass emails do not cost you anything extra also.
113
00:07:54.391 --> 00:07:54.732
Use them.
114
00:07:55.012 --> 00:07:58.475
Once a month, send a season-specific offer to your customer list.
115
00:07:59.035 --> 00:08:01.317
These customers are already in your database.
116
00:08:01.657 --> 00:08:03.599
They already know, like, and trust you.
117
00:08:04.139 --> 00:08:06.661
Many of you also have payment information on file.
118
00:08:07.262 --> 00:08:10.304
This is the cheapest customer Acrogen cost you will ever earn.
119
00:08:10.325 --> 00:08:10.765
Okay.
120
00:08:11.025 --> 00:08:14.486
The fourth thing I would do is to optimize my website for conversion.
121
00:08:15.106 --> 00:08:26.390
If you want examples of websites that convert well and are optimized for mobile devices, Google ranking, and AI search ranking, check out homeservicewebdesign.com and click the Our Work tab.
122
00:08:27.090 --> 00:08:30.711
The best way to triple the amount of leads you get is not to triple your ad budget.
123
00:08:31.231 --> 00:08:32.991
It is to increase your conversion rate.
124
00:08:33.532 --> 00:08:47.515
We've developed over a thousand websites at Home Service Web Design, and I have seen proper design and conversion rate optimization take a webpage from one out of 400 visitors submitting an estimate request form to one out of 50.
125
00:08:48.595 --> 00:08:49.556
Realize what that means.
126
00:08:50.096 --> 00:08:53.980
This is an 8x improvement for the same 400 visitors.
127
00:08:54.640 --> 00:08:56.442
One company would get one lead.
128
00:08:56.882 --> 00:08:58.123
Another would get eight.
129
00:08:58.744 --> 00:09:03.128
This is why web design with the advent of AI is becoming much more human.
130
00:09:03.748 --> 00:09:12.672
It's not just about keywords, it's not about tricking the system or spamming backlinks, it's about whether the customer solves their problem on your website.
131
00:09:13.092 --> 00:09:18.295
Do they stop searching because your website gave them confidence, clarity, and a clear next step?
132
00:09:18.755 --> 00:09:29.080
Or do they bounce to your next competitor because they're confused by the design, because they can't find the S2 request form, or they do not understand your service area or what you actually offer?
133
00:09:29.760 --> 00:09:35.166
When ad costs are rising and leads are harder to come by, conversion becomes a moat.
134
00:09:35.827 --> 00:09:40.552
In 2020, we saw an explosion of the chuck in a truck in home services.
135
00:09:40.993 --> 00:09:49.602
AI and the push to online will reverse that trend and consolidate a limited supply of leads to the top contractors in your local market.
136
00:09:49.622 --> 00:09:50.183
Okay.
137
00:09:50.283 --> 00:09:57.150
When you ask Chatwt or Gemini for contractors in your area, it does not give you pages of options and blue links.
138
00:09:57.710 --> 00:09:59.712
It gives you two to three recommendations.
139
00:10:00.413 --> 00:10:01.934
Those businesses will win.
140
00:10:02.795 --> 00:10:15.226
Only after you have done all four of these would I then spend money on Facebook ads, Google ads, door hangers, yard signs, or any other paid marketing channel to drive traffic to your website.
141
00:10:15.987 --> 00:10:20.311
There are a few features inside HomeWorks that I consistently see underutilized.
142
00:10:20.891 --> 00:10:28.318
And in an environment where ad costs are rising and margins matter more, these features represent immediate leverage.
143
00:10:28.998 --> 00:10:30.199
The first is upsells.
144
00:10:30.920 --> 00:10:41.269
When you toggle on upsells inside the FieldForce mobile app and train your crews to use it consistently, average revenue per member at HomeWorks increases by over 25%.
145
00:10:43.050 --> 00:10:55.249
Most businesses are leaving thousands of dollars in additional revenue on the table each month simply because they're not systematically offering additional services to customers who already trust them.
146
00:10:56.185 --> 00:11:04.090
The upsell feature now works offline, so there's no excuse for not spending an hour setting up your top service upsells.
147
00:11:04.991 --> 00:11:08.373
The second is mass texting, another underutilized feature.
148
00:11:09.194 --> 00:11:13.236
Text messages have open rates between 98 and 99%.
149
00:11:13.837 --> 00:11:16.638
Email might sit between 30 and 40% open rates.
150
00:11:17.339 --> 00:11:18.700
Send seasonal offers.
151
00:11:19.180 --> 00:11:21.121
Reactivate dormant customers.
152
00:11:21.682 --> 00:11:22.943
Promote recurring services.
153
00:11:23.683 --> 00:11:24.683
Fill slow weeks.
154
00:11:25.404 --> 00:11:26.444
Upsell enhancements.
155
00:11:27.024 --> 00:11:28.705
Sell during your off season.
156
00:11:29.225 --> 00:11:34.067
Your contact database is one of your most valuable assets, so use it.
157
00:11:34.527 --> 00:11:39.069
The third underutilized feature is video inside the FieldForce mobile app.
158
00:11:39.690 --> 00:11:47.473
Crews can now record high-definition video, compress it automatically inside the app, and attach it directly to the property or the visit.
159
00:11:48.353 --> 00:11:50.874
That video becomes institutional memory.
160
00:11:51.394 --> 00:11:52.555
It prevents drivebacks.
161
00:11:53.075 --> 00:11:55.656
It improves communication between the crews and the office.
162
00:11:56.196 --> 00:12:00.138
It reduces the estimator visits and the estimator going back to the property.
163
00:12:00.498 --> 00:12:04.559
It improves professionalism with customers when shared inside the customer portal.
164
00:12:05.120 --> 00:12:10.102
This single feature eliminates friction that many owners simply accept as normal.
165
00:12:10.462 --> 00:12:12.943
Homeworks exist to bring clarity to chaos.
166
00:12:13.563 --> 00:12:17.986
That clarity is part of why the results across the platform are encouraging.
167
00:12:18.526 --> 00:12:26.251
In 2025, the average business in its first year on homeworks grew 38.4% in gross top line revenue.
168
00:12:27.051 --> 00:12:29.553
Over a thousand businesses use the platform every day.
169
00:12:30.453 --> 00:12:31.514
That growth is not hype.
170
00:12:32.074 --> 00:12:39.400
It is what happens when operators get visibility into their numbers, enforce pricing discipline, and stop operating reactively.
171
00:12:39.700 --> 00:12:43.743
The scale of activity inside the system reinforces that maturity.
172
00:12:44.223 --> 00:12:52.069
In 2025, over $150 million in credit card payments were processed through Stripe inside of HomeWorks.
173
00:12:52.189 --> 00:12:55.572
In 2026, we anticipate that number will more than double.
174
00:12:55.592 --> 00:12:56.112
Okay.
175
00:12:56.172 --> 00:12:58.273
And that is only Stripe credit card volume.
176
00:12:58.513 --> 00:13:02.576
It does not include checks, cash, PayPal, or other payment methods.
177
00:13:03.096 --> 00:13:06.578
It is strictly the card volume processed directly through the platform.
178
00:13:07.218 --> 00:13:13.382
When that level of revenue flows through a system, reliability and infrastructure become non-negotiable.
179
00:13:13.982 --> 00:13:15.823
We are not building a hobby tool.
180
00:13:16.283 --> 00:13:18.324
We are building operational infrastructure.
181
00:13:18.785 --> 00:13:25.528
That is why 2026 includes foundational work that may not always look flashy, but will matter deeply over time.
182
00:13:26.089 --> 00:13:31.272
We are continuing the systematic conversion of our legacy PHP code base into React.
183
00:13:32.032 --> 00:13:41.958
We have already rebuilt major sections of the platform in React, including the customer portal, payments, estimates and invoices, unscheduled work, and the waitlist pages.
184
00:13:42.898 --> 00:13:44.459
The migration is not cosmetic.
185
00:13:44.959 --> 00:13:48.061
It increases performance, reliability, and long-term velocity.
186
00:13:48.641 --> 00:13:51.803
And as we migrate each page, we are not just rewriting code.
187
00:13:52.383 --> 00:13:56.265
We are rethinking workflows and integrating years of member feedback.
188
00:13:57.045 --> 00:14:00.107
The pace of feature development accelerated in 2025.
189
00:14:00.567 --> 00:14:03.889
We expect that pace to continue and compound in 2026 and 2027.
190
00:14:06.550 --> 00:14:13.218
As the foundation strengthens, here are some of the main focuses we have inside of the product in the next 12 to 24 months.
191
00:14:13.699 --> 00:14:15.441
Pricebook is a major priority.
192
00:14:16.022 --> 00:14:23.811
Pricebook allows estimates to be built using structured components that are not visible to the customer, but fully accounted for internally.
193
00:14:24.432 --> 00:14:30.033
That means no more outside spreadsheets, no more mental math, no more emotional overrides.
194
00:14:30.514 --> 00:14:32.114
Pricing becomes a system.
195
00:14:32.714 --> 00:14:34.835
Job costing becomes accurate.
196
00:14:35.335 --> 00:14:37.656
Margin protection becomes enforceable.
197
00:14:38.316 --> 00:14:42.897
In an environment where hesitation is the enemy, price book instills confidence.
198
00:14:43.177 --> 00:14:47.698
Instant quote forms are another significant initiative in the next 12 to 24 months.
199
00:14:48.098 --> 00:14:50.379
There's a segment of customers that are affluent.
200
00:14:50.939 --> 00:14:55.201
They are time-sensitive, often price-insensitive, and technically inclined.
201
00:14:55.922 --> 00:14:57.302
They do not want five estimates.
202
00:14:57.762 --> 00:15:01.304
They do not want to have three contractors roaming around their house.
203
00:15:01.865 --> 00:15:03.225
They want clarity and speed.
204
00:15:03.625 --> 00:15:08.148
Instant quotes will allow you to build customizable forms inside of homeworks.
205
00:15:08.768 --> 00:15:16.394
embed them directly on your website, and let customers accept pricing, place a card on file, and automatically enter your CRM.
206
00:15:17.034 --> 00:15:22.378
No estimator drive time, no admin overhead for basic sales, no friction.
207
00:15:23.038 --> 00:15:24.199
It sells for you 24 hours a day.
208
00:15:25.680 --> 00:15:39.306
No office worker, no estimator, it acts as a premium client filter, and it builds on the customer portal infrastructure we completed in 2025, creating a direct path from the website to the CRM to payment.
209
00:15:39.746 --> 00:15:46.209
We are also investing heavily in improving chemical tracking, applications, and snow features for the green industry.
210
00:15:46.849 --> 00:15:56.279
While chemical tracking and quick dispatch features exist today, scaling past a few hundred customers for chemicals or snow service can introduce friction.
211
00:15:56.860 --> 00:16:05.108
Through ongoing discovery and member feedback, we are redesigning these workflows so operators can grow without outgrowing the system.
212
00:16:05.829 --> 00:16:08.332
Multi-location capabilities are another focus.
213
00:16:08.973 --> 00:16:10.475
More operators are expanding.
214
00:16:11.035 --> 00:16:16.402
Moving customers, jobs, and employees between locations should not feel fragmented.
215
00:16:17.023 --> 00:16:21.788
We are prioritizing improvements that make scaling cohesive instead of chaotic.
216
00:16:22.549 --> 00:16:25.771
At the same time, we are simplifying how pricing plans work for our members.
217
00:16:26.432 --> 00:16:30.494
Every dollar we receive is reinvested into building the product and making it better.
218
00:16:31.215 --> 00:16:36.839
In 2025, we receive consistent feedback from members frustrated by constant user adjustments.
219
00:16:37.059 --> 00:16:41.382
Adding and removing employee users monthly create friction and confusion.
220
00:16:41.642 --> 00:16:45.564
In 2026, we are continuing the move towards bundled user tiers.
221
00:16:46.185 --> 00:16:47.165
Fewer moving parts.
222
00:16:47.706 --> 00:16:48.947
Less administrative noise.
223
00:16:49.447 --> 00:16:50.348
More predictability.
224
00:16:51.068 --> 00:16:56.429
This aligns with the direction we set during the rebrand and simplifies operations as teams grow.
225
00:16:56.690 --> 00:17:00.671
Speaking of the brand, the transition from Copilot to Homeworks was intentional.
226
00:17:01.371 --> 00:17:03.351
Copilot sounded like an AI tool.
227
00:17:03.971 --> 00:17:09.173
Homeworks represents a system that helps home service business owners grow without breaking.
228
00:17:09.793 --> 00:17:12.134
This is a community of serious operators.
229
00:17:12.574 --> 00:17:15.795
We are not backed by private equity dictating quarterly optics.
230
00:17:16.255 --> 00:17:20.137
We can move quickly because we are focused on long-term operator success.
231
00:17:20.397 --> 00:17:23.017
What makes homeworks inevitable is not hype.
232
00:17:23.338 --> 00:17:23.938
It is focus.
233
00:17:24.398 --> 00:17:26.239
It is serious operator alignment.
234
00:17:26.739 --> 00:17:30.140
It's about understanding owners' needs and creating solutions.
235
00:17:30.760 --> 00:17:33.541
It is a team committed to velocity without chaos.
236
00:17:33.681 --> 00:17:36.142
If you take anything from this letter, let it be this.
237
00:17:36.662 --> 00:17:37.502
Block out noise.
238
00:17:37.922 --> 00:17:38.903
Install systems.
239
00:17:39.503 --> 00:17:43.124
Filter capacity, raise prices when the business tells you to.
240
00:17:43.804 --> 00:17:45.485
Focus on revenue quality.
241
00:17:46.045 --> 00:17:48.025
Track your marketing precisely.
242
00:17:48.646 --> 00:17:50.686
Upsell before you advertise.
243
00:17:51.446 --> 00:17:53.507
Use the tools fully, not partially.
244
00:17:54.187 --> 00:17:57.608
The operators who stay disciplined will win in 2026.
245
00:17:57.648 --> 00:18:00.209
This is the first annual letter.
246
00:18:00.809 --> 00:18:04.630
Next year, we will look back at what we executed well and where we must improve.
247
00:18:05.270 --> 00:18:06.411
Thank you for building with Homeworks.
248
00:18:06.991 --> 00:18:07.211
Mike.
249
00:18:07.985 --> 00:18:09.668
Okay, so that was the homeworks annual letter.
250
00:18:09.688 --> 00:18:12.213
Now I'm going to swap over to the Augusta Nation letter.
251
00:18:12.493 --> 00:18:18.464
And again, this is specifically for those that are part of Augusta Lawn Care in more than 200 locations around the world.
252
00:18:19.562 --> 00:18:24.986
To everyone in Augusta Nation, this letter is the first of what I intend to become an annual tradition.
253
00:18:25.747 --> 00:18:32.192
Each year, I want to write a letter that captures what I'm seeing, what we're changing, what we're building, and why.
254
00:18:32.933 --> 00:18:37.777
Not as a recap of everything we announce at the conference, and not as a substitute for training.
255
00:18:38.417 --> 00:18:49.184
This letter is a clear, durable snapshot of the chessboard, something you can read in one sitting, forward to your spouse, share with your team, and reference later when decisions get noisy.
256
00:18:49.405 --> 00:18:53.708
I'm writing this because scattered communication creates scattered execution.
257
00:18:54.468 --> 00:18:55.869
Conference sessions get missed.
258
00:18:56.429 --> 00:18:57.529
Videos get skimmed.
259
00:18:58.050 --> 00:18:59.950
Updates get consumed out of order.
260
00:19:00.591 --> 00:19:02.631
A letter forces a coherent narrative.
261
00:19:03.112 --> 00:19:09.895
It also forces me to explain the why in plain language without hiding behind slides, edits, or momentum.
262
00:19:09.975 --> 00:19:12.696
The simplest way to summarize what I see happening is this.
263
00:19:13.476 --> 00:19:15.337
The moat around Augusta is becoming real.
264
00:19:15.777 --> 00:19:18.618
In 2026 is the year it becomes undeniable.
265
00:19:19.339 --> 00:19:21.680
The moat is forming and you can see it in the lead flow.
266
00:19:22.140 --> 00:19:27.302
Two years ago, many new locations waited a long time for organic traction to develop.
267
00:19:27.902 --> 00:19:34.545
Today, locations are getting roughly two times as many leads in their first month as they did 24 months ago.
268
00:19:35.286 --> 00:19:37.787
This increase is from organic search traffic.
269
00:19:38.267 --> 00:19:42.749
We are seeing new owners receive leads before they even arrive at new owner training.
270
00:19:43.429 --> 00:19:57.787
In many markets, we are ranking on page two of Google almost immediately, moving to page one within weeks, and depending on the market, pushing into the top spots within three to six months instead of the old six to 12 month ramp.
271
00:19:58.568 --> 00:19:59.990
This is not a small improvement.
272
00:20:00.470 --> 00:20:01.231
It is compounding.
273
00:20:01.992 --> 00:20:10.917
This is what happens when you combine hundreds of locations, thousands of reviews, and an enormous volume of traffic flowing through a single national brand.
274
00:20:11.538 --> 00:20:17.982
It's what happens when the system stays consistent long enough that the internet treats the brand as the default answer.
275
00:20:18.182 --> 00:20:24.786
And it is what happens when the industry moves slowly enough that most competitors are not even trying to play this game yet.
276
00:20:25.646 --> 00:20:28.007
Moats widen slowly and then all at once.
277
00:20:28.628 --> 00:20:30.048
We are in the widening phase.
278
00:20:30.248 --> 00:20:35.031
In 2026, approximately half of Augusta locations will be in profit mode.
279
00:20:35.651 --> 00:20:40.994
That means a majority of owners are no longer optimizing for top-line growth at any cost.
280
00:20:41.414 --> 00:20:42.354
They have raised prices.
281
00:20:42.735 --> 00:20:46.777
They have learned that revenue is not the goal and that complexity is a tax.
282
00:20:47.317 --> 00:20:48.838
They are actively simplifying.
283
00:20:49.298 --> 00:20:52.960
They are shifting away from one-time work and towards recurring work.
284
00:20:53.640 --> 00:20:57.406
They are prioritizing gross margin, cash flow, and capacity.
285
00:20:58.415 --> 00:21:05.298
As that happens, I expect same-store sales growth to trend downward towards 12% to 15% over time.
286
00:21:05.378 --> 00:21:06.298
That is not weakness.
287
00:21:06.599 --> 00:21:07.339
That is maturity.
288
00:21:07.579 --> 00:21:16.443
When a location goes into profit mode, the revenue might grow only 10% to 12%, but the quality of that revenue increases dramatically.
289
00:21:17.043 --> 00:21:21.325
This is one of the most important mental shifts in the entire Augusta operating system.
290
00:21:21.985 --> 00:21:23.746
Not all revenue is equal.
291
00:21:24.506 --> 00:21:31.808
One-time jobs can look impressive on a revenue chart while quietly consuming your calendar, your attention, and your sanity.
292
00:21:32.368 --> 00:21:38.070
They create a project management burden that most operators underestimate until it is too late.
293
00:21:38.690 --> 00:21:42.151
Recurring work, especially scheduled recurring work, is different.
294
00:21:42.652 --> 00:21:49.954
It is predictable, easier to staff, easier to route, easier to delegate, easier to grow without breaking.
295
00:21:50.694 --> 00:21:58.901
That is why in the stages of owner success, stage two is profit mode and stage three is simplify and focus on recurring revenue.
296
00:21:59.742 --> 00:22:01.524
Stage two is where you stop bleeding.
297
00:22:02.064 --> 00:22:04.827
Stage three is where the business becomes durable.
298
00:22:05.167 --> 00:22:13.915
The fact that more than half of the system will be in stage two and stage three in 2026 is a structural shift in what Augusta is.
299
00:22:14.595 --> 00:22:15.575
It changes our brand.
300
00:22:16.016 --> 00:22:17.456
It changes the customer mix.
301
00:22:17.956 --> 00:22:20.417
It changes our ability to recruit leadership.
302
00:22:21.117 --> 00:22:25.699
Treatments, instant quotes, and over-the-phone support are about shortening the project trap.
303
00:22:26.439 --> 00:22:28.880
A lot of owners get stuck in the same pattern.
304
00:22:29.240 --> 00:22:34.802
The business grows and the growth shows up as bigger and bigger projects and commercial contracts.
305
00:22:35.382 --> 00:22:39.224
Those projects feel like progress because they are big tickets.
306
00:22:39.244 --> 00:22:45.448
They also stretch the time spent in stage 3 of success because projects are where complexity multiplies.
307
00:22:46.089 --> 00:22:47.870
The goal is not to eliminate projects.
308
00:22:48.230 --> 00:22:51.992
The goal is to stop using projects as your primary path to growth.
309
00:22:52.293 --> 00:22:55.695
Treatments are one of the cleanest paths to higher quality revenue.
310
00:22:56.115 --> 00:23:00.498
They are higher margin, naturally recurring, and an easy upsell for mowing.
311
00:23:01.258 --> 00:23:10.706
A large number of visitors already come to our website simply because the words lawn care are in our name, and many of them are coming specifically for treatments.
312
00:23:11.526 --> 00:23:18.432
In 2026, we are starting the infrastructure to enable treatments to scale within Augusta without chaos.
313
00:23:19.312 --> 00:23:21.414
That means marketing material and print material.
314
00:23:21.695 --> 00:23:22.696
It means instant quotes.
315
00:23:23.196 --> 00:23:25.459
It means command center over the phone estimates.
316
00:23:25.899 --> 00:23:26.940
It means preferred vendors.
317
00:23:27.260 --> 00:23:34.188
It means training, certification, and making sure rolling this out is actually viable in real markets with real regulations.
318
00:23:34.768 --> 00:23:37.631
And it means homeworks needs to properly support treatments.
319
00:23:38.272 --> 00:23:45.376
We know there are holes today that must be plugged before treatments can be scaled efficiently and in compliance with local chemical regulations.
320
00:23:45.996 --> 00:23:50.139
This is top of mind for Josh Kale and the product team and is top of mind for me.
321
00:23:50.879 --> 00:23:52.820
Treatments are not a random add-on.
322
00:23:53.240 --> 00:23:57.603
We are building as a system and laying the foundation in 2026.
323
00:23:58.003 --> 00:24:03.466
This is also why we are adding over the phone and instant quote support in spring 2026.
324
00:24:04.887 --> 00:24:15.989
The goal is to help owners move towards higher quality revenue sooner instead of spending years trapped in complex project work that steals time and creates scheduling fragility.
325
00:24:16.929 --> 00:24:19.870
HomeWorks is becoming the multi-location operating system.
326
00:24:20.810 --> 00:24:25.191
Two HomeWorks efforts in 2026 matter a lot for Augusta specifically.
327
00:24:25.791 --> 00:24:32.412
First is treatment support, because scaling treatments without the right workflows is how you create mess and mistakes.
328
00:24:33.234 --> 00:24:35.717
Second is multi-location operations.
329
00:24:36.357 --> 00:24:45.546
One of the most important capability upgrades we are building is the ability to manage multiple locations inside a single HomeWorks account in a way that is actually clean.
330
00:24:46.067 --> 00:24:49.910
Customers, employees, and jobs need to move between locations easily.
331
00:24:50.551 --> 00:24:53.252
Multi-location management should not feel cumbersome.
332
00:24:53.832 --> 00:25:02.056
If Augusta is to produce more location operators, then HomeWorks must become the operating system for disciplined multi-location growth.
333
00:25:02.596 --> 00:25:11.940
We built technology this past year to capture leads when someone starts an instant quote but does not submit the entire form or abandons the page after seeing the price.
334
00:25:12.600 --> 00:25:14.561
Those are not random website visitors.
335
00:25:15.061 --> 00:25:16.601
They are high intent prospects.
336
00:25:17.041 --> 00:25:21.003
But we also do not want garbage data dumped into your homeworks account.
337
00:25:21.683 --> 00:25:27.485
Bad data leads to bad follow-up, bad reporting, and poor email and SMS deliverability.
338
00:25:28.125 --> 00:25:29.025
So we built a gate.
339
00:25:29.445 --> 00:25:34.127
We collect what we can, send it to command center, validate whether it's a legitimate person.
340
00:25:34.227 --> 00:25:39.469
And if it is, we follow up and put that lead into your homework system so you can market to them in the future.
341
00:25:40.089 --> 00:25:43.790
This is one of those invisible advantages that becomes massive at scale.
342
00:25:44.430 --> 00:25:48.272
At one location, it feels small, 15 to 20% more leads.
343
00:25:48.912 --> 00:25:56.936
Across hundreds of locations, it becomes a meaningful engine for recovered opportunity and dramatically reduces customer acquisition costs.
344
00:25:57.176 --> 00:26:05.140
The abandoned cart technology would not be possible without the vertical integration we have with homeworks and internal engineering and web design teams.
345
00:26:05.820 --> 00:26:10.442
AI search is going to concentrate demand, and we are building for that world now.
346
00:26:10.843 --> 00:26:15.265
More than 9 out of 10 visits to our site still come from Google today.
347
00:26:16.005 --> 00:26:19.927
AI platforms still account for a single-digit percentage of traffic.
348
00:26:20.548 --> 00:26:23.269
That is exactly why we are taking it seriously now.
349
00:26:23.609 --> 00:26:25.370
The lawn care industry moves slowly.
350
00:26:25.910 --> 00:26:33.314
Most contractors will not adjust their websites or online strategy for AI until AI accounts for 30-50% of their traffic.
351
00:26:35.095 --> 00:26:37.576
By then, the leaderboard will be established.
352
00:26:38.317 --> 00:26:39.598
Google is a crowded shelf.
353
00:26:40.358 --> 00:26:42.739
AI is a curated recommendation.
354
00:26:43.400 --> 00:26:48.883
On Google, you might see 15 competitors between ads, local service ads, and organic results.
355
00:26:49.543 --> 00:26:55.186
On AI, you might see two or three, and the interface pushes you hard towards one.
356
00:26:55.847 --> 00:26:57.868
That creates a rich-get-richer dynamic.
357
00:26:58.308 --> 00:27:01.210
Not exactly winner-takes-all, but winner-takes-most.
358
00:27:02.030 --> 00:27:06.591
AI's incentive is to give the most accurate and safest answer to the user.
359
00:27:07.212 --> 00:27:15.474
If an AI platform recommends low-credibility contractors and customers have a bad outcome, the AI platform takes the reputational hit.
360
00:27:15.994 --> 00:27:24.937
So, AI will rely heavily on signals such as brand reputation, review volume, domain authority, traffic patterns, and consistency.
361
00:27:25.837 --> 00:27:34.844
As a national brand with hundreds of locations, thousands of reviews, and massive customer traffic flowing through one domain, we have a structural advantage.
362
00:27:35.505 --> 00:27:43.632
That is why we reorganized the website design around AI-first consumption, including adding FAQs on each location website.
363
00:27:44.312 --> 00:27:48.496
In the future, those FAQs will be customizable at the location level.
364
00:27:49.096 --> 00:27:55.718
We are already seeing early signs of an uptick in AI search traffic sources, and we will keep iterating.
365
00:27:56.378 --> 00:28:02.180
We are not building our entire strategy around AI today because Google search still dominates the market.
366
00:28:02.741 --> 00:28:06.242
We are absolutely building the moat for the world that is coming.
367
00:28:06.382 --> 00:28:12.024
Corporate investment in Gemini Pro is about making AI usable at every level of the organization.
368
00:28:12.870 --> 00:28:22.444
To support this shift and accelerate practical adoption, we invested at the corporate level to upgrade every Augusta Lawn Care email account to the professional version of Gemini.
369
00:28:23.105 --> 00:28:28.553
That upgrade gives access to AI tools such as Notebook LMN and Nano Banana.
370
00:28:29.214 --> 00:28:37.642
This has already unlocked use cases, projections, budgeting, planning, scenario modeling, and even image generation from media and marketing.
371
00:28:38.263 --> 00:28:41.646
It's not just AI for fun, it is AI as leverage.
372
00:28:41.847 --> 00:28:43.588
The reason we did this now is simple.
373
00:28:44.129 --> 00:28:47.312
It's the first step to get everyone onto the upgraded platform.
374
00:28:47.872 --> 00:28:51.996
Once the entire organization is on the same toolset, we can build on top of it.
375
00:28:52.637 --> 00:29:04.202
In 2026, especially in media, image generation, custom marketing, and internal analysis, we will continue exploring and systematizing how these tools deliver speed and quality.
376
00:29:04.842 --> 00:29:06.563
More on that will come throughout 2026.
377
00:29:06.923 --> 00:29:12.286
But the foundational move was making sure the whole network had access to the same upgraded capabilities.
378
00:29:12.706 --> 00:29:16.868
Command Center, built as a long-term advantage, not a cost center.
379
00:29:17.068 --> 00:29:21.390
Over the past few years, we made deliberate investments to retain our team at Command Center.
380
00:29:22.070 --> 00:29:27.371
We increase wages, added benefits including 401k, health plans, vision, and dental.
381
00:29:27.991 --> 00:29:30.252
We work to stay above market on compensation.
382
00:29:30.852 --> 00:29:34.373
This has led to very low voluntary churn at the agent level.
383
00:29:34.933 --> 00:29:36.753
Continuity improves quality.
384
00:29:37.133 --> 00:29:38.714
Quality reduces mistakes.
385
00:29:39.294 --> 00:29:41.354
Reduced mistakes protects the brand.
386
00:29:41.935 --> 00:29:43.415
That is the compounding chain.
387
00:29:44.075 --> 00:29:58.245
This winter, we increased the team size significantly, and we can do so without compromising quality because of the tooling upgrades we have implemented, including screen recordings, AI transcripts, and coaching on every single phone call.
388
00:29:58.945 --> 00:30:05.730
We also increased quality control and efficiency reporting and reinforced what constitutes a 10 out of 10 call.
389
00:30:06.450 --> 00:30:08.432
The 10 out of 10 call is not vague.
390
00:30:08.912 --> 00:30:11.134
It comes down to three trackable behaviors.
391
00:30:11.154 --> 00:30:11.194
1.
392
00:30:11.814 --> 00:30:13.535
Do they ask the 10 out of 10 question?
393
00:30:14.196 --> 00:30:20.081
Thoughtful upselling and an upbeat tone, all tracked automatically by AI on every phone call.
394
00:30:20.937 --> 00:30:28.481
Starting in March, 2026, we will be staffed 24-7 with human agents, all US-based, answering the phones.
395
00:30:29.141 --> 00:30:34.404
We have used Max AI in the past, and it will still exist as a backup for overflow.
396
00:30:35.104 --> 00:30:44.289
AI captured about 72% to 75% of callers leaving their information, which is far better than voicemail, typically around 37%.
397
00:30:44.909 --> 00:30:49.191
We are continuing to improve Max AI and want to get that capture rate above 80%.
398
00:30:50.492 --> 00:30:53.813
but we are willing to invest in humans because the ceiling is even higher.
399
00:30:54.473 --> 00:30:57.634
If we can capture close to 100% with human agents, we will.
400
00:30:58.354 --> 00:31:01.915
We have also learned that upsells do not work the same with AI.
401
00:31:02.095 --> 00:31:06.576
Customers interpret AI upsells as salesy because they know it is a program.
402
00:31:06.976 --> 00:31:12.898
A thoughtful human upsell feels like care, like solving an additional problem the customer already has.
403
00:31:13.698 --> 00:31:19.581
Treatments will be a major upsell pathway, and that is another reason we are prioritizing humans on the phone.
404
00:31:19.701 --> 00:31:23.644
We are intentionally leaning into the customer who wants a national brand.
405
00:31:24.484 --> 00:31:28.026
Here's a truth that matters for owners and GMs to understand.
406
00:31:28.366 --> 00:31:33.489
A large portion of customers, maybe 70%, prefer hiring the local provider.
407
00:31:33.909 --> 00:31:35.190
They like the local story.
408
00:31:35.450 --> 00:31:37.251
They like neighborhood connection.
409
00:31:37.532 --> 00:31:38.732
They like the chuck in a truck.
410
00:31:39.112 --> 00:31:39.613
That is real.
411
00:31:39.633 --> 00:31:40.133
That is real.
412
00:31:40.233 --> 00:31:45.655
But in most markets, 70% of demand is divided among dozens of competitors.
413
00:31:46.255 --> 00:31:57.359
There is another segment, maybe 30%, that is willing to pay more, prefers professionalism, wants convenience, and will adapt technology like instant quotes and over-the-phone estimates.
414
00:31:58.139 --> 00:32:03.301
This segment often prefers a national brand for its predictability and standards.
415
00:32:03.741 --> 00:32:09.563
In many markets, 30% of the pie has very few true national brand options.
416
00:32:10.083 --> 00:32:13.844
That creates a blue ocean for us if we execute on it correctly.
417
00:32:14.365 --> 00:32:21.207
So when you occasionally receive feedback that a customer doesn't like national brands, do not interpret this as a problem.
418
00:32:21.647 --> 00:32:23.568
It is a reminder that we are choosing a lane.
419
00:32:24.168 --> 00:32:26.170
is our unique selling proposition.
420
00:32:26.710 --> 00:32:32.075
Our lane is professionalism at scale, delivered locally, backed by a national standard.
421
00:32:32.455 --> 00:32:37.440
Augusta Leads exists to solve the leads constraint and turn advertising into a system.
422
00:32:38.479 --> 00:32:43.262
The 4L framework says businesses stop growing due to one of four constraints.
423
00:32:43.822 --> 00:32:46.304
Liquidity, leads, labor, or leadership.
424
00:32:47.164 --> 00:33:02.033
This year, we attacked the leads constraint with Augusta Leads, taking management of Meta Ads, Google Ads, and Local Service Ads off the owner's plate so owners can focus on operations and team instead of campaign tinkering.
425
00:33:02.653 --> 00:33:10.092
We also attacked the leadership constraint of the 4L framework with a national recruiting campaign for general managers, which I'll cover in a moment.
426
00:33:11.019 --> 00:33:17.184
Average advertising costs at Google and Facebook continue to rise by about 10-15% per year.
427
00:33:18.004 --> 00:33:24.489
The online platforms will continue to outperform if ad tracking and budget optimization are in place.
428
00:33:25.170 --> 00:33:28.712
That is why Augusta Leads does not charge a percentage of spend.
429
00:33:29.213 --> 00:33:30.694
We charge a flat monthly rate.
430
00:33:31.174 --> 00:33:36.719
We do not want a perverse incentive to inflate your marketing budget when you do not need to spend it.
431
00:33:37.499 --> 00:33:43.367
A major unlock in 2026 will be system-level aggregation of advertising data.
432
00:33:44.027 --> 00:33:48.473
When we can see what works across the network, we can share winners and trends.
433
00:33:48.954 --> 00:33:55.962
This info is available to all of Augusta Nation, regardless of whether you're using the Augusta Leads program or you're running ads yourself.
434
00:33:56.627 --> 00:34:03.333
For example, we are currently seeing that roughly 80% of Google Ads clicks are on the call now or similar button.
435
00:34:03.973 --> 00:34:08.517
That observation changes how we build campaigns and tracking strategies.
436
00:34:09.358 --> 00:34:15.443
After the spring 2026 quarter, you will start seeing these regular reports from the Augusta Leads department.
437
00:34:16.178 --> 00:34:23.763
Alongside that, we will keep building the done-for-you ads tutorial in the Academy so you can understand the levers, not just outsource them.
438
00:34:23.883 --> 00:34:29.047
And one additional initiative tied to Augusta Leads manages a lot for multi-location expansion.
439
00:34:29.647 --> 00:34:36.072
In 2026, we intend to launch a program that will guarantee 100 recurring customers for new locations.
440
00:34:36.792 --> 00:34:38.053
More details will come in the fall.
441
00:34:38.414 --> 00:34:48.242
The objective is to remove guesswork during launches, reduce extended burn, and give owners confidence that new territories can get to profitability within four months.
442
00:34:48.782 --> 00:34:51.785
That kind of predictability changes expansion behavior.
443
00:34:52.105 --> 00:34:52.546
Leadership.
444
00:34:53.006 --> 00:34:55.949
Building a GM pipeline that makes copy and paste viable.
445
00:34:56.089 --> 00:35:00.553
We recently ran a national campaign to source general managers for new locations.
446
00:35:01.133 --> 00:35:07.839
The goal is to support existing owners who want to copy and paste locations and build a business that runs without them.
447
00:35:08.740 --> 00:35:10.842
We sourced over 1,700 applicants.
448
00:35:11.342 --> 00:35:20.490
We used Spark Hire videos as part of the evaluation and built a roster of more than 50 qualified general managers willing to relocate to serve Augusta Nation.
449
00:35:21.271 --> 00:35:27.993
We will continue to do so later in 2026 to meet the ongoing need for qualified GMs willing to relocate.
450
00:35:28.773 --> 00:35:35.236
This is one of the first real steps towards solving the leadership constraint of the 4L framework at a system level.
451
00:35:35.696 --> 00:35:40.397
Multi-location growth cannot remain dependent on luck or personal networks.
452
00:35:40.777 --> 00:35:42.518
We need a repeatable pipeline.
453
00:35:43.238 --> 00:35:48.002
Labor and liquidity are constraints in the 4L framework, and we intend to solve them down the road.
454
00:35:48.102 --> 00:35:48.782
Preferred vendors.
455
00:35:49.143 --> 00:35:51.584
More value, more leverage, more professionalism.
456
00:35:51.725 --> 00:35:54.587
We will continue to add more value through preferred vendors.
457
00:35:55.147 --> 00:36:03.794
In 2025, we added preferred vendor relationships, including Exmark, Ford, General Motors, Boss Snowplows, Liberty Insurance, among many others.
458
00:36:04.094 --> 00:36:06.396
In 2026, we will continue to add more.
459
00:36:06.996 --> 00:36:15.544
leveraging the leverage that comes from being in the Landscape 100 and becoming a brand that larger manufacturers and insurers want to work with.
460
00:36:16.385 --> 00:36:21.009
This matters because the discounts are meaningful, but the credibility is just as important.
461
00:36:21.610 --> 00:36:25.554
It reinforces that Augusta is not a random collection of small contractors.
462
00:36:26.034 --> 00:36:29.396
is a professional network with purchasing power and standards.
463
00:36:29.617 --> 00:36:33.780
The 21 stages of success is a core pillar of our professionalization mission.
464
00:36:34.040 --> 00:36:36.982
21 stages of success is not a side idea.
465
00:36:37.522 --> 00:36:39.744
It is a mechanism for changing an industry.
466
00:36:40.404 --> 00:36:45.348
Seven stages for technicians, seven stages for general managers, seven stages for owners.
467
00:36:45.768 --> 00:36:48.650
This framework breaks the dead-end job mentality.
468
00:36:49.050 --> 00:36:52.173
It creates upper mobility inside the same ecosystem.
469
00:36:52.693 --> 00:36:59.996
It creates a roadmap for the technicians to become leaders, for leaders to become owners, and for owners to become multi-location operators.
470
00:37:00.436 --> 00:37:06.998
It also creates something most home service companies never build, a ladder people can climb without leaving.
471
00:37:07.878 --> 00:37:14.781
This career progression ties directly to the copy-and-paste method and the 3F program, Franchise Fee Forgiveness.
472
00:37:15.461 --> 00:37:22.125
People can advance inside Augusta Nation, build the career, and create a roadmap for the next person behind them to do the same.
473
00:37:22.986 --> 00:37:29.229
This is how professionalism spreads, not through slogans, but through structured advancement and repeatable systems.
474
00:37:29.530 --> 00:37:33.112
Copy and Paste, a formulaic template for multi-location growth.
475
00:37:33.592 --> 00:37:38.335
We created a template for starting multiple locations called the Copy and Paste Training System.
476
00:37:38.835 --> 00:37:41.037
It was developed by Nick Reed, Lee Park, and myself.
477
00:37:41.597 --> 00:37:42.518
It is on the dashboard.
478
00:37:42.819 --> 00:37:48.365
It is designed to make multi-location expansion formulaic rather than just improvising.
479
00:37:48.866 --> 00:37:50.528
It includes two ways of expanding.
480
00:37:51.068 --> 00:37:56.394
One is the more conservative approach where you ghost a location and expand with lower financial risk.
481
00:37:56.955 --> 00:38:00.199
The second is starting from scratch and growing aggressively for four months.
482
00:38:00.219 --> 00:38:01.080
The second is starting from scratch
483
00:38:01.260 --> 00:38:06.002
The copy and paste training system is a roadmap to open one location per year.
484
00:38:06.622 --> 00:38:14.626
The system includes templates for general managers, evaluations, projections, planning documents, and a clear roadmap, so expansion is not guesswork.
485
00:38:15.106 --> 00:38:25.231
It also leaves room for the owner to learn the skill of managing managers while still being aggressive and growth-oriented, including being tax-efficient in how expansion is structured.
486
00:38:26.031 --> 00:38:30.574
Multi-location expansion should feel like disciplined execution, not gambling.
487
00:38:31.354 --> 00:38:38.578
Effective March 1, 2026, new locations will pay $35,000 to secure a franchise license and territory.
488
00:38:38.918 --> 00:38:42.260
This move increases the value of existing franchise licenses.
489
00:38:42.640 --> 00:38:42.980
Why?
490
00:38:43.461 --> 00:38:50.865
We do not charge a franchise renewal fee, and we do not increase or update fees to the new owner if you sell your location.
491
00:38:51.705 --> 00:38:57.809
Existing owners will have until January 1, 2030 to secure locations for $20,000.
492
00:38:57.889 --> 00:39:08.235
Our goal is to support existing owners in growing and moving up the stages of success, specifically stage 6, copy and paste.
493
00:39:08.275 --> 00:39:12.338
The $20,000 ensures the franchise covers legal, training, and setup costs.
494
00:39:12.898 --> 00:39:18.422
The discount rewards the first 200 Augusta Nation owners on our path to 1,000 locations.
495
00:39:19.262 --> 00:39:22.323
We have cut the marketing budget for new franchise ads to $0.
496
00:39:22.743 --> 00:39:26.805
This time, resources, and attention are now going towards existing owners.
497
00:39:27.385 --> 00:39:34.588
EPC calls, or expansion planning calls, with Leapark will ensure that owners have a plan, a budget, and full support as they grow.
498
00:39:34.748 --> 00:39:38.550
Brand consistency and compliance are non-negotiable as we scale.
499
00:39:39.350 --> 00:39:43.633
As the brand becomes more recognized, the cost of inconsistency rises.
500
00:39:44.274 --> 00:39:49.738
By January 1st, 2027, all existing truck wraps must be upgraded to the new designs.
501
00:39:50.379 --> 00:39:52.720
This was communicated with plenty of notice two years ago.
502
00:39:53.241 --> 00:39:54.061
The reason is simple.
503
00:39:54.322 --> 00:39:56.023
Brand consistency compounds.
504
00:39:56.603 --> 00:40:04.550
We are seeing more and more leads from customers who move to another state and call Augusta as their preferred provider without even getting other prices.
505
00:40:05.230 --> 00:40:08.395
simply because they're used to our professionalism and our standards.
506
00:40:08.575 --> 00:40:10.017
That kind of trust is fragile.
507
00:40:10.437 --> 00:40:14.223
It depends on consistent experience and consistent presentation.
508
00:40:14.984 --> 00:40:18.268
To maintain brand integrity, we must enforce consistency.
509
00:40:19.095 --> 00:40:28.060
Alongside that, we have taken steps to ensure that by summer 2026, all locations comply with the insurance standards outlined in the franchise agreement.
510
00:40:28.761 --> 00:40:35.185
This includes at least a million dollars in general liability and auto insurance and lists the franchise as an additionally insured.
511
00:40:35.865 --> 00:40:37.826
This is not bureaucratic, it is protective.
512
00:40:38.426 --> 00:40:42.987
As we scale, we must prevent cross-contamination of liability across locations.
513
00:40:43.707 --> 00:40:49.949
One location making poor decisions or having an accident should not create ripple effects for the rest of the network.
514
00:40:50.589 --> 00:40:55.751
Compliance protects owners, protects the brand, and protects the system's long-term durability.
515
00:40:56.211 --> 00:40:59.852
The economic backdrop supports our shift towards recurring services.
516
00:41:00.172 --> 00:41:04.313
In 2026, we are seeing tightening in real estate in some markets.
517
00:41:04.933 --> 00:41:08.376
On average, prices have been sideways, but there's a dispersion.
518
00:41:08.837 --> 00:41:10.558
Some markets continue to expand.
519
00:41:11.119 --> 00:41:14.802
Some markets have seen prices decrease by 10-15%.
520
00:41:15.523 --> 00:41:19.186
When homeowners feel richer, project work is easier to sell.
521
00:41:19.886 --> 00:41:27.713
When home prices soften and interest rates remain higher than historical averages, customers become more cautious with discretionary spending.
522
00:41:28.174 --> 00:41:31.217
They defer one-time improvements and stick to maintenance.
523
00:41:31.897 --> 00:41:38.319
That environment pushes the industry towards recurring services, which aligns directly with the shift we are already making.
524
00:41:38.939 --> 00:41:43.701
Higher quality revenue, recurring work, scheduled service, and professional delivery.
525
00:41:43.921 --> 00:41:44.941
Why all of this matters?
526
00:41:45.861 --> 00:41:51.483
Augusta Nation exists to change the level of professionalism in the lawn care and landscape industry.
527
00:41:52.043 --> 00:41:53.744
That mission is not abstract.
528
00:41:54.324 --> 00:41:56.845
It shows up in specific behaviors and systems.
529
00:41:57.465 --> 00:42:12.582
answering every call, using humans when humans are needed, using AI as leverage, not as a gimmick, providing instant quotes, offering treatments at a professional level, tracking advertising like professionals, raising prices confidently,
530
00:42:13.243 --> 00:42:24.634
building multi-location operators, creating career paths through the 21 stages, enforcing compliance that protects the networks, maintaining brand consistency that earns trust.
531
00:42:25.415 --> 00:42:30.200
Consistency is how we build a brand that customers seek out, even when they move across the country.
532
00:42:30.800 --> 00:42:34.243
Consistency is how we build a network that attracts top talent.
533
00:42:34.884 --> 00:42:37.346
Consistency is how we build something that lasts.
534
00:42:38.149 --> 00:42:41.330
To every owner who is raising standards and making hard decisions.
535
00:42:41.670 --> 00:42:45.191
To every technician who executes in the field when the days are long.
536
00:42:45.671 --> 00:42:49.312
To every general manager who carries responsibility with professionalism.
537
00:42:49.832 --> 00:42:53.253
To every command center agent who represents the brand in their voice.
538
00:42:53.814 --> 00:42:58.495
To every family member who supports someone in Augusta Nation through the spring rush season.
539
00:42:59.015 --> 00:42:59.435
Thank you.
540
00:43:00.115 --> 00:43:01.096
The moat is forming.
541
00:43:01.716 --> 00:43:02.996
The system is maturing.
542
00:43:03.656 --> 00:43:04.937
The standards are rising.
543
00:43:05.957 --> 00:43:08.922
2026 is not about flashy growth for its own sake.
544
00:43:09.543 --> 00:43:15.013
It's about disciplined execution, higher quality revenue, and building infrastructure that compounds.
545
00:43:15.594 --> 00:43:17.236
I'm grateful to build this with you.
546
00:43:17.777 --> 00:43:18.258
Mike Andes.
1
00:00:00.211 --> 00:00:03.875
Today, I want to talk about the state of the home service industry.
2
00:00:04.195 --> 00:00:06.757
Not hype, not headlines, not fear.
3
00:00:07.178 --> 00:00:08.639
Just what's actually happening.
4
00:00:08.819 --> 00:00:11.401
Customer acquisition cost is getting more expensive.
5
00:00:11.642 --> 00:00:12.723
Labor is shifting.
6
00:00:12.983 --> 00:00:14.424
AI is changing search.
7
00:00:14.644 --> 00:00:16.226
Consumers are more cautious.
8
00:00:16.646 --> 00:00:20.350
And the operators who win in 2026 won't be the busiest...
9
00:00:20.790 --> 00:00:22.011
they'll be the most disciplined.
10
00:00:22.272 --> 00:00:30.901
The businesses that grow without breaking this year will fill capacity, protect margins, increase revenue quality, and install real systems.
11
00:00:31.562 --> 00:00:32.723
So I wrote two letters.
12
00:00:33.544 --> 00:00:37.107
One is the HomeWorks Community, and the other is to Augusta Nation.
13
00:00:37.708 --> 00:00:43.010
Both are really about the same thing, how to operate professionally in a tightening market.
14
00:00:43.610 --> 00:00:47.191
I'm going to read the homeworks letter first, and then the Augusta letter.
15
00:00:47.651 --> 00:00:48.151
Let's begin.
16
00:00:48.432 --> 00:00:56.474
Home service businesses are entering a different era, not because the trades themselves are changing, but because the environment around them is shifting.
17
00:00:57.194 --> 00:01:00.235
Customer acquisition cost is getting more expensive.
18
00:01:00.836 --> 00:01:02.596
Consumers are more cautious.
19
00:01:03.176 --> 00:01:04.797
The real estate market is softening.
20
00:01:05.397 --> 00:01:14.222
The operators who grow without breaking in 2026 will be the ones who stay calm and disciplined while others get distracted by headlines.
21
00:01:14.322 --> 00:01:18.384
If I had to name the villain in 2026, it would be hesitation.
22
00:01:19.105 --> 00:01:20.705
Hesitation around raising prices.
23
00:01:21.366 --> 00:01:23.047
Hesitation around selling.
24
00:01:23.627 --> 00:01:26.389
Hesitation driven by negative economic news.
25
00:01:27.229 --> 00:01:29.290
Consumer sentiment feels softer.
26
00:01:29.890 --> 00:01:33.531
Headlines include record levels of consumer credit card debt.
27
00:01:34.091 --> 00:01:36.591
Media cycles amplify every downturn.
28
00:01:37.392 --> 00:01:41.793
It becomes tempting to respond by discounting or shrinking back.
29
00:01:41.993 --> 00:01:42.773
That is a mistake.
30
00:01:43.513 --> 00:01:47.914
If you do not have at least one month of cash in the bank, go into profit mode.
31
00:01:48.555 --> 00:01:50.575
I do not care what economics are saying.
32
00:01:50.595 --> 00:01:51.795
I don't care about what politicians are forecasting.
33
00:01:51.815 --> 00:01:53.896
I don't care what politicians are forecasting.
34
00:01:54.476 --> 00:01:58.277
Your job is not to predict GDP, gross domestic product.
35
00:01:59.037 --> 00:02:02.218
Your job is to build a business that can ignore the noise.
36
00:02:02.878 --> 00:02:03.918
Filter capacity.
37
00:02:04.478 --> 00:02:07.259
Make sure every truck and every employee is used full-time.
38
00:02:07.879 --> 00:02:09.919
Raise prices when your capacity is full.
39
00:02:10.519 --> 00:02:12.080
Improve your revenue quality.
40
00:02:12.600 --> 00:02:15.500
Move from one-time revenue to recurring revenue.
41
00:02:16.160 --> 00:02:19.021
That progression is how you build stability.
42
00:02:19.721 --> 00:02:26.404
The operators who commit to that discipline will not feel fragile, even if the headlines feel chaotic.
43
00:02:26.784 --> 00:02:30.826
Another economic shift is unfolding, one worth addressing directly.
44
00:02:31.506 --> 00:02:38.729
If you started your business in 2020, 2021, 2022, you likely experienced a very specific constraint.
45
00:02:39.269 --> 00:02:40.369
Demand was abundant.
46
00:02:40.850 --> 00:02:41.690
Leads poured in.
47
00:02:42.070 --> 00:02:43.711
The phone was ringing off the hook.
48
00:02:44.231 --> 00:02:46.132
The primary bottleneck was labor.
49
00:02:46.732 --> 00:02:48.693
The hardest part was not getting work.
50
00:02:49.094 --> 00:02:51.435
It was finding people to keep up with it.
51
00:02:51.995 --> 00:02:53.576
We were supply constrained.
52
00:02:54.016 --> 00:02:55.597
We could not find employees.
53
00:02:56.478 --> 00:02:59.559
I believe 2026 begins to flip that dynamic.
54
00:02:59.960 --> 00:03:06.083
As the labor market softens and unemployment ticks upward, the constraint will not be, can I find anyone at all?
55
00:03:06.563 --> 00:03:09.325
The constraint will become, can I filter effectively?
56
00:03:10.045 --> 00:03:15.530
Instead of struggling to get three applicants, you might get 50 or 60 in a few days.
57
00:03:16.230 --> 00:03:19.433
The game becomes screening, not searching.
58
00:03:20.133 --> 00:03:21.394
This is where systems matter.
59
00:03:22.035 --> 00:03:26.398
HomeWorks already includes automations that many members are underutilizing.
60
00:03:26.779 --> 00:03:30.142
Hex reminders dramatically increase interview show-up rates.
61
00:03:30.742 --> 00:03:35.004
You can create an applicant customer type and set up automated reminders.
62
00:03:35.465 --> 00:03:41.488
Structured application questions filter candidates before you waste time on in-person interviews.
63
00:03:42.328 --> 00:03:43.589
Use video submissions.
64
00:03:44.169 --> 00:03:49.933
Screen for professionalism and communication before you even schedule an in-person meeting.
65
00:03:50.133 --> 00:03:54.895
When applicant volume rises, interviewing more people is not the solution.
66
00:03:55.736 --> 00:03:59.218
Filtering faster and selecting better is the solution.
67
00:03:59.998 --> 00:04:06.562
The operators who install hiring systems now will move more quickly, while others drown in applicant noise.
68
00:04:07.463 --> 00:04:10.565
Hiring becomes a numbers game if you have no system.
69
00:04:11.205 --> 00:04:15.328
Quality drops when you blindly invite 50 people to an interview.
70
00:04:15.828 --> 00:04:16.669
Show rate drops.
71
00:04:17.209 --> 00:04:22.613
At the same time, as labor becomes more available, demand does not automatically increase.
72
00:04:23.293 --> 00:04:24.994
Demand becomes competitive.
73
00:04:25.534 --> 00:04:34.258
For many local markets with real estate prices down or softened, consumers feel less inclined to spend on home renovations or improvements.
74
00:04:34.838 --> 00:04:38.880
For many home service businesses, we will become demand-constrained.
75
00:04:39.460 --> 00:04:44.562
The leads constraint in the 4L framework will keep many businesses from growth.
76
00:04:44.722 --> 00:04:45.862
Which brings us to marketing.
77
00:04:46.343 --> 00:04:51.385
Across the industry, advertising platforms are layering in more AI-driven settings.
78
00:04:52.145 --> 00:04:55.266
Many of these features are optimized to increase spend.
79
00:04:55.747 --> 00:05:03.430
They promise efficiency, but without proper tracking and configuration, they often dilute lead quality while increasing your budget.
80
00:05:03.730 --> 00:05:08.752
If you're running Meta or Google Ads without proper tracking installed, you are not marketing.
81
00:05:09.292 --> 00:05:09.952
You are guessing.
82
00:05:10.293 --> 00:05:12.594
Install the Facebook pixel on your website.
83
00:05:12.934 --> 00:05:15.456
Get Google tracking codes configured properly.
84
00:05:15.636 --> 00:05:21.760
You need real conversion tracking tied to booked jobs, not just clicks or estimate request forms.
85
00:05:22.080 --> 00:05:24.581
You need disciplined negative keyword management.
86
00:05:25.002 --> 00:05:26.543
You need geographic filtering.
87
00:05:26.943 --> 00:05:29.845
You need to understand where every marketing dollar is going.
88
00:05:30.725 --> 00:05:32.367
It is a general industry reality.
89
00:05:32.767 --> 00:05:37.353
Most operators are still flying blind when it comes to paid traffic.
90
00:05:37.493 --> 00:05:40.016
In 2026, it will become more expensive.
91
00:05:40.436 --> 00:05:46.022
The gap will widen between those who track precisely and those who rely on default AI settings.
92
00:05:46.763 --> 00:05:52.507
Professional advertisers who understand these systems are becoming more valuable, not less.
93
00:05:53.187 --> 00:06:00.312
If you are, one, spending over $1,000 per month in ads, or two, in growth mode, hire a professional.
94
00:06:00.993 --> 00:06:07.617
But I also want to address something I see consistently across home services that is even more painful than poor tracking.
95
00:06:07.937 --> 00:06:16.023
I see people wasting money on advertising when they have not exhausted the leads and revenue already sitting inside their business.
96
00:06:16.623 --> 00:06:20.607
Before I spend a single dollar on ads, I will do several things first.
97
00:06:21.187 --> 00:06:30.455
The first is building automations and homeworks that send text and email to customers multiple times in the first couple of weeks after an estimate is sent.
98
00:06:30.775 --> 00:06:36.741
If you send an estimate and hope the customer just gets back to you, you are choosing a silent loss.
99
00:06:37.361 --> 00:06:41.385
The second is a phone call follow-up on every pending estimate.
100
00:06:41.905 --> 00:06:49.491
So text, emails, and phone calls together ensure that we do not have customers ghosting us and estimates left pending.
101
00:06:49.671 --> 00:06:57.438
Consistently, across the board, inside HomeWorks, more than 20% of customers open an estimate and we never hear back from that customer.
102
00:06:57.798 --> 00:07:00.441
That is not because those customers were never interested.
103
00:07:00.881 --> 00:07:08.508
It's usually because there was no automation and no follow-up phone call to answer questions, overcome objections, and schedule the job.
104
00:07:08.808 --> 00:07:13.553
If you want more work, stop losing the work you already earned the right to close.
105
00:07:13.693 --> 00:07:18.297
The third is upselling your existing customer base through text and email blasts.
106
00:07:18.798 --> 00:07:22.822
Until July, text will remain free and unlimited inside HomeWorks.
107
00:07:23.342 --> 00:07:27.286
No other platform allows unfettered, unlimited texting without payment.
108
00:07:27.707 --> 00:07:37.436
In the future, we will have to meter this and pass along the hard costs that Twilio charges us for every text message, the same way that Stripe charges for processing fees.
109
00:07:38.157 --> 00:07:41.781
We have incurred the cost for years to serve early adopters of homeworks.
110
00:07:42.181 --> 00:07:48.386
Starting in July, we'll have to charge for those and pass that cost along based on what Twilio charges us.
111
00:07:48.807 --> 00:07:50.368
But for now, texts are free.
112
00:07:50.888 --> 00:07:53.811
Mass emails do not cost you anything extra also.
113
00:07:54.391 --> 00:07:54.732
Use them.
114
00:07:55.012 --> 00:07:58.475
Once a month, send a season-specific offer to your customer list.
115
00:07:59.035 --> 00:08:01.317
These customers are already in your database.
116
00:08:01.657 --> 00:08:03.599
They already know, like, and trust you.
117
00:08:04.139 --> 00:08:06.661
Many of you also have payment information on file.
118
00:08:07.262 --> 00:08:10.304
This is the cheapest customer Acrogen cost you will ever earn.
119
00:08:10.325 --> 00:08:10.765
Okay.
120
00:08:11.025 --> 00:08:14.486
The fourth thing I would do is to optimize my website for conversion.
121
00:08:15.106 --> 00:08:26.390
If you want examples of websites that convert well and are optimized for mobile devices, Google ranking, and AI search ranking, check out homeservicewebdesign.com and click the Our Work tab.
122
00:08:27.090 --> 00:08:30.711
The best way to triple the amount of leads you get is not to triple your ad budget.
123
00:08:31.231 --> 00:08:32.991
It is to increase your conversion rate.
124
00:08:33.532 --> 00:08:47.515
We've developed over a thousand websites at Home Service Web Design, and I have seen proper design and conversion rate optimization take a webpage from one out of 400 visitors submitting an estimate request form to one out of 50.
125
00:08:48.595 --> 00:08:49.556
Realize what that means.
126
00:08:50.096 --> 00:08:53.980
This is an 8x improvement for the same 400 visitors.
127
00:08:54.640 --> 00:08:56.442
One company would get one lead.
128
00:08:56.882 --> 00:08:58.123
Another would get eight.
129
00:08:58.744 --> 00:09:03.128
This is why web design with the advent of AI is becoming much more human.
130
00:09:03.748 --> 00:09:12.672
It's not just about keywords, it's not about tricking the system or spamming backlinks, it's about whether the customer solves their problem on your website.
131
00:09:13.092 --> 00:09:18.295
Do they stop searching because your website gave them confidence, clarity, and a clear next step?
132
00:09:18.755 --> 00:09:29.080
Or do they bounce to your next competitor because they're confused by the design, because they can't find the S2 request form, or they do not understand your service area or what you actually offer?
133
00:09:29.760 --> 00:09:35.166
When ad costs are rising and leads are harder to come by, conversion becomes a moat.
134
00:09:35.827 --> 00:09:40.552
In 2020, we saw an explosion of the chuck in a truck in home services.
135
00:09:40.993 --> 00:09:49.602
AI and the push to online will reverse that trend and consolidate a limited supply of leads to the top contractors in your local market.
136
00:09:49.622 --> 00:09:50.183
Okay.
137
00:09:50.283 --> 00:09:57.150
When you ask Chatwt or Gemini for contractors in your area, it does not give you pages of options and blue links.
138
00:09:57.710 --> 00:09:59.712
It gives you two to three recommendations.
139
00:10:00.413 --> 00:10:01.934
Those businesses will win.
140
00:10:02.795 --> 00:10:15.226
Only after you have done all four of these would I then spend money on Facebook ads, Google ads, door hangers, yard signs, or any other paid marketing channel to drive traffic to your website.
141
00:10:15.987 --> 00:10:20.311
There are a few features inside HomeWorks that I consistently see underutilized.
142
00:10:20.891 --> 00:10:28.318
And in an environment where ad costs are rising and margins matter more, these features represent immediate leverage.
143
00:10:28.998 --> 00:10:30.199
The first is upsells.
144
00:10:30.920 --> 00:10:41.269
When you toggle on upsells inside the FieldForce mobile app and train your crews to use it consistently, average revenue per member at HomeWorks increases by over 25%.
145
00:10:43.050 --> 00:10:55.249
Most businesses are leaving thousands of dollars in additional revenue on the table each month simply because they're not systematically offering additional services to customers who already trust them.
146
00:10:56.185 --> 00:11:04.090
The upsell feature now works offline, so there's no excuse for not spending an hour setting up your top service upsells.
147
00:11:04.991 --> 00:11:08.373
The second is mass texting, another underutilized feature.
148
00:11:09.194 --> 00:11:13.236
Text messages have open rates between 98 and 99%.
149
00:11:13.837 --> 00:11:16.638
Email might sit between 30 and 40% open rates.
150
00:11:17.339 --> 00:11:18.700
Send seasonal offers.
151
00:11:19.180 --> 00:11:21.121
Reactivate dormant customers.
152
00:11:21.682 --> 00:11:22.943
Promote recurring services.
153
00:11:23.683 --> 00:11:24.683
Fill slow weeks.
154
00:11:25.404 --> 00:11:26.444
Upsell enhancements.
155
00:11:27.024 --> 00:11:28.705
Sell during your off season.
156
00:11:29.225 --> 00:11:34.067
Your contact database is one of your most valuable assets, so use it.
157
00:11:34.527 --> 00:11:39.069
The third underutilized feature is video inside the FieldForce mobile app.
158
00:11:39.690 --> 00:11:47.473
Crews can now record high-definition video, compress it automatically inside the app, and attach it directly to the property or the visit.
159
00:11:48.353 --> 00:11:50.874
That video becomes institutional memory.
160
00:11:51.394 --> 00:11:52.555
It prevents drivebacks.
161
00:11:53.075 --> 00:11:55.656
It improves communication between the crews and the office.
162
00:11:56.196 --> 00:12:00.138
It reduces the estimator visits and the estimator going back to the property.
163
00:12:00.498 --> 00:12:04.559
It improves professionalism with customers when shared inside the customer portal.
164
00:12:05.120 --> 00:12:10.102
This single feature eliminates friction that many owners simply accept as normal.
165
00:12:10.462 --> 00:12:12.943
Homeworks exist to bring clarity to chaos.
166
00:12:13.563 --> 00:12:17.986
That clarity is part of why the results across the platform are encouraging.
167
00:12:18.526 --> 00:12:26.251
In 2025, the average business in its first year on homeworks grew 38.4% in gross top line revenue.
168
00:12:27.051 --> 00:12:29.553
Over a thousand businesses use the platform every day.
169
00:12:30.453 --> 00:12:31.514
That growth is not hype.
170
00:12:32.074 --> 00:12:39.400
It is what happens when operators get visibility into their numbers, enforce pricing discipline, and stop operating reactively.
171
00:12:39.700 --> 00:12:43.743
The scale of activity inside the system reinforces that maturity.
172
00:12:44.223 --> 00:12:52.069
In 2025, over $150 million in credit card payments were processed through Stripe inside of HomeWorks.
173
00:12:52.189 --> 00:12:55.572
In 2026, we anticipate that number will more than double.
174
00:12:55.592 --> 00:12:56.112
Okay.
175
00:12:56.172 --> 00:12:58.273
And that is only Stripe credit card volume.
176
00:12:58.513 --> 00:13:02.576
It does not include checks, cash, PayPal, or other payment methods.
177
00:13:03.096 --> 00:13:06.578
It is strictly the card volume processed directly through the platform.
178
00:13:07.218 --> 00:13:13.382
When that level of revenue flows through a system, reliability and infrastructure become non-negotiable.
179
00:13:13.982 --> 00:13:15.823
We are not building a hobby tool.
180
00:13:16.283 --> 00:13:18.324
We are building operational infrastructure.
181
00:13:18.785 --> 00:13:25.528
That is why 2026 includes foundational work that may not always look flashy, but will matter deeply over time.
182
00:13:26.089 --> 00:13:31.272
We are continuing the systematic conversion of our legacy PHP code base into React.
183
00:13:32.032 --> 00:13:41.958
We have already rebuilt major sections of the platform in React, including the customer portal, payments, estimates and invoices, unscheduled work, and the waitlist pages.
184
00:13:42.898 --> 00:13:44.459
The migration is not cosmetic.
185
00:13:44.959 --> 00:13:48.061
It increases performance, reliability, and long-term velocity.
186
00:13:48.641 --> 00:13:51.803
And as we migrate each page, we are not just rewriting code.
187
00:13:52.383 --> 00:13:56.265
We are rethinking workflows and integrating years of member feedback.
188
00:13:57.045 --> 00:14:00.107
The pace of feature development accelerated in 2025.
189
00:14:00.567 --> 00:14:03.889
We expect that pace to continue and compound in 2026 and 2027.
190
00:14:06.550 --> 00:14:13.218
As the foundation strengthens, here are some of the main focuses we have inside of the product in the next 12 to 24 months.
191
00:14:13.699 --> 00:14:15.441
Pricebook is a major priority.
192
00:14:16.022 --> 00:14:23.811
Pricebook allows estimates to be built using structured components that are not visible to the customer, but fully accounted for internally.
193
00:14:24.432 --> 00:14:30.033
That means no more outside spreadsheets, no more mental math, no more emotional overrides.
194
00:14:30.514 --> 00:14:32.114
Pricing becomes a system.
195
00:14:32.714 --> 00:14:34.835
Job costing becomes accurate.
196
00:14:35.335 --> 00:14:37.656
Margin protection becomes enforceable.
197
00:14:38.316 --> 00:14:42.897
In an environment where hesitation is the enemy, price book instills confidence.
198
00:14:43.177 --> 00:14:47.698
Instant quote forms are another significant initiative in the next 12 to 24 months.
199
00:14:48.098 --> 00:14:50.379
There's a segment of customers that are affluent.
200
00:14:50.939 --> 00:14:55.201
They are time-sensitive, often price-insensitive, and technically inclined.
201
00:14:55.922 --> 00:14:57.302
They do not want five estimates.
202
00:14:57.762 --> 00:15:01.304
They do not want to have three contractors roaming around their house.
203
00:15:01.865 --> 00:15:03.225
They want clarity and speed.
204
00:15:03.625 --> 00:15:08.148
Instant quotes will allow you to build customizable forms inside of homeworks.
205
00:15:08.768 --> 00:15:16.394
embed them directly on your website, and let customers accept pricing, place a card on file, and automatically enter your CRM.
206
00:15:17.034 --> 00:15:22.378
No estimator drive time, no admin overhead for basic sales, no friction.
207
00:15:23.038 --> 00:15:24.199
It sells for you 24 hours a day.
208
00:15:25.680 --> 00:15:39.306
No office worker, no estimator, it acts as a premium client filter, and it builds on the customer portal infrastructure we completed in 2025, creating a direct path from the website to the CRM to payment.
209
00:15:39.746 --> 00:15:46.209
We are also investing heavily in improving chemical tracking, applications, and snow features for the green industry.
210
00:15:46.849 --> 00:15:56.279
While chemical tracking and quick dispatch features exist today, scaling past a few hundred customers for chemicals or snow service can introduce friction.
211
00:15:56.860 --> 00:16:05.108
Through ongoing discovery and member feedback, we are redesigning these workflows so operators can grow without outgrowing the system.
212
00:16:05.829 --> 00:16:08.332
Multi-location capabilities are another focus.
213
00:16:08.973 --> 00:16:10.475
More operators are expanding.
214
00:16:11.035 --> 00:16:16.402
Moving customers, jobs, and employees between locations should not feel fragmented.
215
00:16:17.023 --> 00:16:21.788
We are prioritizing improvements that make scaling cohesive instead of chaotic.
216
00:16:22.549 --> 00:16:25.771
At the same time, we are simplifying how pricing plans work for our members.
217
00:16:26.432 --> 00:16:30.494
Every dollar we receive is reinvested into building the product and making it better.
218
00:16:31.215 --> 00:16:36.839
In 2025, we receive consistent feedback from members frustrated by constant user adjustments.
219
00:16:37.059 --> 00:16:41.382
Adding and removing employee users monthly create friction and confusion.
220
00:16:41.642 --> 00:16:45.564
In 2026, we are continuing the move towards bundled user tiers.
221
00:16:46.185 --> 00:16:47.165
Fewer moving parts.
222
00:16:47.706 --> 00:16:48.947
Less administrative noise.
223
00:16:49.447 --> 00:16:50.348
More predictability.
224
00:16:51.068 --> 00:16:56.429
This aligns with the direction we set during the rebrand and simplifies operations as teams grow.
225
00:16:56.690 --> 00:17:00.671
Speaking of the brand, the transition from Copilot to Homeworks was intentional.
226
00:17:01.371 --> 00:17:03.351
Copilot sounded like an AI tool.
227
00:17:03.971 --> 00:17:09.173
Homeworks represents a system that helps home service business owners grow without breaking.
228
00:17:09.793 --> 00:17:12.134
This is a community of serious operators.
229
00:17:12.574 --> 00:17:15.795
We are not backed by private equity dictating quarterly optics.
230
00:17:16.255 --> 00:17:20.137
We can move quickly because we are focused on long-term operator success.
231
00:17:20.397 --> 00:17:23.017
What makes homeworks inevitable is not hype.
232
00:17:23.338 --> 00:17:23.938
It is focus.
233
00:17:24.398 --> 00:17:26.239
It is serious operator alignment.
234
00:17:26.739 --> 00:17:30.140
It's about understanding owners' needs and creating solutions.
235
00:17:30.760 --> 00:17:33.541
It is a team committed to velocity without chaos.
236
00:17:33.681 --> 00:17:36.142
If you take anything from this letter, let it be this.
237
00:17:36.662 --> 00:17:37.502
Block out noise.
238
00:17:37.922 --> 00:17:38.903
Install systems.
239
00:17:39.503 --> 00:17:43.124
Filter capacity, raise prices when the business tells you to.
240
00:17:43.804 --> 00:17:45.485
Focus on revenue quality.
241
00:17:46.045 --> 00:17:48.025
Track your marketing precisely.
242
00:17:48.646 --> 00:17:50.686
Upsell before you advertise.
243
00:17:51.446 --> 00:17:53.507
Use the tools fully, not partially.
244
00:17:54.187 --> 00:17:57.608
The operators who stay disciplined will win in 2026.
245
00:17:57.648 --> 00:18:00.209
This is the first annual letter.
246
00:18:00.809 --> 00:18:04.630
Next year, we will look back at what we executed well and where we must improve.
247
00:18:05.270 --> 00:18:06.411
Thank you for building with Homeworks.
248
00:18:06.991 --> 00:18:07.211
Mike.
249
00:18:07.985 --> 00:18:09.668
Okay, so that was the homeworks annual letter.
250
00:18:09.688 --> 00:18:12.213
Now I'm going to swap over to the Augusta Nation letter.
251
00:18:12.493 --> 00:18:18.464
And again, this is specifically for those that are part of Augusta Lawn Care in more than 200 locations around the world.
252
00:18:19.562 --> 00:18:24.986
To everyone in Augusta Nation, this letter is the first of what I intend to become an annual tradition.
253
00:18:25.747 --> 00:18:32.192
Each year, I want to write a letter that captures what I'm seeing, what we're changing, what we're building, and why.
254
00:18:32.933 --> 00:18:37.777
Not as a recap of everything we announce at the conference, and not as a substitute for training.
255
00:18:38.417 --> 00:18:49.184
This letter is a clear, durable snapshot of the chessboard, something you can read in one sitting, forward to your spouse, share with your team, and reference later when decisions get noisy.
256
00:18:49.405 --> 00:18:53.708
I'm writing this because scattered communication creates scattered execution.
257
00:18:54.468 --> 00:18:55.869
Conference sessions get missed.
258
00:18:56.429 --> 00:18:57.529
Videos get skimmed.
259
00:18:58.050 --> 00:18:59.950
Updates get consumed out of order.
260
00:19:00.591 --> 00:19:02.631
A letter forces a coherent narrative.
261
00:19:03.112 --> 00:19:09.895
It also forces me to explain the why in plain language without hiding behind slides, edits, or momentum.
262
00:19:09.975 --> 00:19:12.696
The simplest way to summarize what I see happening is this.
263
00:19:13.476 --> 00:19:15.337
The moat around Augusta is becoming real.
264
00:19:15.777 --> 00:19:18.618
In 2026 is the year it becomes undeniable.
265
00:19:19.339 --> 00:19:21.680
The moat is forming and you can see it in the lead flow.
266
00:19:22.140 --> 00:19:27.302
Two years ago, many new locations waited a long time for organic traction to develop.
267
00:19:27.902 --> 00:19:34.545
Today, locations are getting roughly two times as many leads in their first month as they did 24 months ago.
268
00:19:35.286 --> 00:19:37.787
This increase is from organic search traffic.
269
00:19:38.267 --> 00:19:42.749
We are seeing new owners receive leads before they even arrive at new owner training.
270
00:19:43.429 --> 00:19:57.787
In many markets, we are ranking on page two of Google almost immediately, moving to page one within weeks, and depending on the market, pushing into the top spots within three to six months instead of the old six to 12 month ramp.
271
00:19:58.568 --> 00:19:59.990
This is not a small improvement.
272
00:20:00.470 --> 00:20:01.231
It is compounding.
273
00:20:01.992 --> 00:20:10.917
This is what happens when you combine hundreds of locations, thousands of reviews, and an enormous volume of traffic flowing through a single national brand.
274
00:20:11.538 --> 00:20:17.982
It's what happens when the system stays consistent long enough that the internet treats the brand as the default answer.
275
00:20:18.182 --> 00:20:24.786
And it is what happens when the industry moves slowly enough that most competitors are not even trying to play this game yet.
276
00:20:25.646 --> 00:20:28.007
Moats widen slowly and then all at once.
277
00:20:28.628 --> 00:20:30.048
We are in the widening phase.
278
00:20:30.248 --> 00:20:35.031
In 2026, approximately half of Augusta locations will be in profit mode.
279
00:20:35.651 --> 00:20:40.994
That means a majority of owners are no longer optimizing for top-line growth at any cost.
280
00:20:41.414 --> 00:20:42.354
They have raised prices.
281
00:20:42.735 --> 00:20:46.777
They have learned that revenue is not the goal and that complexity is a tax.
282
00:20:47.317 --> 00:20:48.838
They are actively simplifying.
283
00:20:49.298 --> 00:20:52.960
They are shifting away from one-time work and towards recurring work.
284
00:20:53.640 --> 00:20:57.406
They are prioritizing gross margin, cash flow, and capacity.
285
00:20:58.415 --> 00:21:05.298
As that happens, I expect same-store sales growth to trend downward towards 12% to 15% over time.
286
00:21:05.378 --> 00:21:06.298
That is not weakness.
287
00:21:06.599 --> 00:21:07.339
That is maturity.
288
00:21:07.579 --> 00:21:16.443
When a location goes into profit mode, the revenue might grow only 10% to 12%, but the quality of that revenue increases dramatically.
289
00:21:17.043 --> 00:21:21.325
This is one of the most important mental shifts in the entire Augusta operating system.
290
00:21:21.985 --> 00:21:23.746
Not all revenue is equal.
291
00:21:24.506 --> 00:21:31.808
One-time jobs can look impressive on a revenue chart while quietly consuming your calendar, your attention, and your sanity.
292
00:21:32.368 --> 00:21:38.070
They create a project management burden that most operators underestimate until it is too late.
293
00:21:38.690 --> 00:21:42.151
Recurring work, especially scheduled recurring work, is different.
294
00:21:42.652 --> 00:21:49.954
It is predictable, easier to staff, easier to route, easier to delegate, easier to grow without breaking.
295
00:21:50.694 --> 00:21:58.901
That is why in the stages of owner success, stage two is profit mode and stage three is simplify and focus on recurring revenue.
296
00:21:59.742 --> 00:22:01.524
Stage two is where you stop bleeding.
297
00:22:02.064 --> 00:22:04.827
Stage three is where the business becomes durable.
298
00:22:05.167 --> 00:22:13.915
The fact that more than half of the system will be in stage two and stage three in 2026 is a structural shift in what Augusta is.
299
00:22:14.595 --> 00:22:15.575
It changes our brand.
300
00:22:16.016 --> 00:22:17.456
It changes the customer mix.
301
00:22:17.956 --> 00:22:20.417
It changes our ability to recruit leadership.
302
00:22:21.117 --> 00:22:25.699
Treatments, instant quotes, and over-the-phone support are about shortening the project trap.
303
00:22:26.439 --> 00:22:28.880
A lot of owners get stuck in the same pattern.
304
00:22:29.240 --> 00:22:34.802
The business grows and the growth shows up as bigger and bigger projects and commercial contracts.
305
00:22:35.382 --> 00:22:39.224
Those projects feel like progress because they are big tickets.
306
00:22:39.244 --> 00:22:45.448
They also stretch the time spent in stage 3 of success because projects are where complexity multiplies.
307
00:22:46.089 --> 00:22:47.870
The goal is not to eliminate projects.
308
00:22:48.230 --> 00:22:51.992
The goal is to stop using projects as your primary path to growth.
309
00:22:52.293 --> 00:22:55.695
Treatments are one of the cleanest paths to higher quality revenue.
310
00:22:56.115 --> 00:23:00.498
They are higher margin, naturally recurring, and an easy upsell for mowing.
311
00:23:01.258 --> 00:23:10.706
A large number of visitors already come to our website simply because the words lawn care are in our name, and many of them are coming specifically for treatments.
312
00:23:11.526 --> 00:23:18.432
In 2026, we are starting the infrastructure to enable treatments to scale within Augusta without chaos.
313
00:23:19.312 --> 00:23:21.414
That means marketing material and print material.
314
00:23:21.695 --> 00:23:22.696
It means instant quotes.
315
00:23:23.196 --> 00:23:25.459
It means command center over the phone estimates.
316
00:23:25.899 --> 00:23:26.940
It means preferred vendors.
317
00:23:27.260 --> 00:23:34.188
It means training, certification, and making sure rolling this out is actually viable in real markets with real regulations.
318
00:23:34.768 --> 00:23:37.631
And it means homeworks needs to properly support treatments.
319
00:23:38.272 --> 00:23:45.376
We know there are holes today that must be plugged before treatments can be scaled efficiently and in compliance with local chemical regulations.
320
00:23:45.996 --> 00:23:50.139
This is top of mind for Josh Kale and the product team and is top of mind for me.
321
00:23:50.879 --> 00:23:52.820
Treatments are not a random add-on.
322
00:23:53.240 --> 00:23:57.603
We are building as a system and laying the foundation in 2026.
323
00:23:58.003 --> 00:24:03.466
This is also why we are adding over the phone and instant quote support in spring 2026.
324
00:24:04.887 --> 00:24:15.989
The goal is to help owners move towards higher quality revenue sooner instead of spending years trapped in complex project work that steals time and creates scheduling fragility.
325
00:24:16.929 --> 00:24:19.870
HomeWorks is becoming the multi-location operating system.
326
00:24:20.810 --> 00:24:25.191
Two HomeWorks efforts in 2026 matter a lot for Augusta specifically.
327
00:24:25.791 --> 00:24:32.412
First is treatment support, because scaling treatments without the right workflows is how you create mess and mistakes.
328
00:24:33.234 --> 00:24:35.717
Second is multi-location operations.
329
00:24:36.357 --> 00:24:45.546
One of the most important capability upgrades we are building is the ability to manage multiple locations inside a single HomeWorks account in a way that is actually clean.
330
00:24:46.067 --> 00:24:49.910
Customers, employees, and jobs need to move between locations easily.
331
00:24:50.551 --> 00:24:53.252
Multi-location management should not feel cumbersome.
332
00:24:53.832 --> 00:25:02.056
If Augusta is to produce more location operators, then HomeWorks must become the operating system for disciplined multi-location growth.
333
00:25:02.596 --> 00:25:11.940
We built technology this past year to capture leads when someone starts an instant quote but does not submit the entire form or abandons the page after seeing the price.
334
00:25:12.600 --> 00:25:14.561
Those are not random website visitors.
335
00:25:15.061 --> 00:25:16.601
They are high intent prospects.
336
00:25:17.041 --> 00:25:21.003
But we also do not want garbage data dumped into your homeworks account.
337
00:25:21.683 --> 00:25:27.485
Bad data leads to bad follow-up, bad reporting, and poor email and SMS deliverability.
338
00:25:28.125 --> 00:25:29.025
So we built a gate.
339
00:25:29.445 --> 00:25:34.127
We collect what we can, send it to command center, validate whether it's a legitimate person.
340
00:25:34.227 --> 00:25:39.469
And if it is, we follow up and put that lead into your homework system so you can market to them in the future.
341
00:25:40.089 --> 00:25:43.790
This is one of those invisible advantages that becomes massive at scale.
342
00:25:44.430 --> 00:25:48.272
At one location, it feels small, 15 to 20% more leads.
343
00:25:48.912 --> 00:25:56.936
Across hundreds of locations, it becomes a meaningful engine for recovered opportunity and dramatically reduces customer acquisition costs.
344
00:25:57.176 --> 00:26:05.140
The abandoned cart technology would not be possible without the vertical integration we have with homeworks and internal engineering and web design teams.
345
00:26:05.820 --> 00:26:10.442
AI search is going to concentrate demand, and we are building for that world now.
346
00:26:10.843 --> 00:26:15.265
More than 9 out of 10 visits to our site still come from Google today.
347
00:26:16.005 --> 00:26:19.927
AI platforms still account for a single-digit percentage of traffic.
348
00:26:20.548 --> 00:26:23.269
That is exactly why we are taking it seriously now.
349
00:26:23.609 --> 00:26:25.370
The lawn care industry moves slowly.
350
00:26:25.910 --> 00:26:33.314
Most contractors will not adjust their websites or online strategy for AI until AI accounts for 30-50% of their traffic.
351
00:26:35.095 --> 00:26:37.576
By then, the leaderboard will be established.
352
00:26:38.317 --> 00:26:39.598
Google is a crowded shelf.
353
00:26:40.358 --> 00:26:42.739
AI is a curated recommendation.
354
00:26:43.400 --> 00:26:48.883
On Google, you might see 15 competitors between ads, local service ads, and organic results.
355
00:26:49.543 --> 00:26:55.186
On AI, you might see two or three, and the interface pushes you hard towards one.
356
00:26:55.847 --> 00:26:57.868
That creates a rich-get-richer dynamic.
357
00:26:58.308 --> 00:27:01.210
Not exactly winner-takes-all, but winner-takes-most.
358
00:27:02.030 --> 00:27:06.591
AI's incentive is to give the most accurate and safest answer to the user.
359
00:27:07.212 --> 00:27:15.474
If an AI platform recommends low-credibility contractors and customers have a bad outcome, the AI platform takes the reputational hit.
360
00:27:15.994 --> 00:27:24.937
So, AI will rely heavily on signals such as brand reputation, review volume, domain authority, traffic patterns, and consistency.
361
00:27:25.837 --> 00:27:34.844
As a national brand with hundreds of locations, thousands of reviews, and massive customer traffic flowing through one domain, we have a structural advantage.
362
00:27:35.505 --> 00:27:43.632
That is why we reorganized the website design around AI-first consumption, including adding FAQs on each location website.
363
00:27:44.312 --> 00:27:48.496
In the future, those FAQs will be customizable at the location level.
364
00:27:49.096 --> 00:27:55.718
We are already seeing early signs of an uptick in AI search traffic sources, and we will keep iterating.
365
00:27:56.378 --> 00:28:02.180
We are not building our entire strategy around AI today because Google search still dominates the market.
366
00:28:02.741 --> 00:28:06.242
We are absolutely building the moat for the world that is coming.
367
00:28:06.382 --> 00:28:12.024
Corporate investment in Gemini Pro is about making AI usable at every level of the organization.
368
00:28:12.870 --> 00:28:22.444
To support this shift and accelerate practical adoption, we invested at the corporate level to upgrade every Augusta Lawn Care email account to the professional version of Gemini.
369
00:28:23.105 --> 00:28:28.553
That upgrade gives access to AI tools such as Notebook LMN and Nano Banana.
370
00:28:29.214 --> 00:28:37.642
This has already unlocked use cases, projections, budgeting, planning, scenario modeling, and even image generation from media and marketing.
371
00:28:38.263 --> 00:28:41.646
It's not just AI for fun, it is AI as leverage.
372
00:28:41.847 --> 00:28:43.588
The reason we did this now is simple.
373
00:28:44.129 --> 00:28:47.312
It's the first step to get everyone onto the upgraded platform.
374
00:28:47.872 --> 00:28:51.996
Once the entire organization is on the same toolset, we can build on top of it.
375
00:28:52.637 --> 00:29:04.202
In 2026, especially in media, image generation, custom marketing, and internal analysis, we will continue exploring and systematizing how these tools deliver speed and quality.
376
00:29:04.842 --> 00:29:06.563
More on that will come throughout 2026.
377
00:29:06.923 --> 00:29:12.286
But the foundational move was making sure the whole network had access to the same upgraded capabilities.
378
00:29:12.706 --> 00:29:16.868
Command Center, built as a long-term advantage, not a cost center.
379
00:29:17.068 --> 00:29:21.390
Over the past few years, we made deliberate investments to retain our team at Command Center.
380
00:29:22.070 --> 00:29:27.371
We increase wages, added benefits including 401k, health plans, vision, and dental.
381
00:29:27.991 --> 00:29:30.252
We work to stay above market on compensation.
382
00:29:30.852 --> 00:29:34.373
This has led to very low voluntary churn at the agent level.
383
00:29:34.933 --> 00:29:36.753
Continuity improves quality.
384
00:29:37.133 --> 00:29:38.714
Quality reduces mistakes.
385
00:29:39.294 --> 00:29:41.354
Reduced mistakes protects the brand.
386
00:29:41.935 --> 00:29:43.415
That is the compounding chain.
387
00:29:44.075 --> 00:29:58.245
This winter, we increased the team size significantly, and we can do so without compromising quality because of the tooling upgrades we have implemented, including screen recordings, AI transcripts, and coaching on every single phone call.
388
00:29:58.945 --> 00:30:05.730
We also increased quality control and efficiency reporting and reinforced what constitutes a 10 out of 10 call.
389
00:30:06.450 --> 00:30:08.432
The 10 out of 10 call is not vague.
390
00:30:08.912 --> 00:30:11.134
It comes down to three trackable behaviors.
391
00:30:11.154 --> 00:30:11.194
1.
392
00:30:11.814 --> 00:30:13.535
Do they ask the 10 out of 10 question?
393
00:30:14.196 --> 00:30:20.081
Thoughtful upselling and an upbeat tone, all tracked automatically by AI on every phone call.
394
00:30:20.937 --> 00:30:28.481
Starting in March, 2026, we will be staffed 24-7 with human agents, all US-based, answering the phones.
395
00:30:29.141 --> 00:30:34.404
We have used Max AI in the past, and it will still exist as a backup for overflow.
396
00:30:35.104 --> 00:30:44.289
AI captured about 72% to 75% of callers leaving their information, which is far better than voicemail, typically around 37%.
397
00:30:44.909 --> 00:30:49.191
We are continuing to improve Max AI and want to get that capture rate above 80%.
398
00:30:50.492 --> 00:30:53.813
but we are willing to invest in humans because the ceiling is even higher.
399
00:30:54.473 --> 00:30:57.634
If we can capture close to 100% with human agents, we will.
400
00:30:58.354 --> 00:31:01.915
We have also learned that upsells do not work the same with AI.
401
00:31:02.095 --> 00:31:06.576
Customers interpret AI upsells as salesy because they know it is a program.
402
00:31:06.976 --> 00:31:12.898
A thoughtful human upsell feels like care, like solving an additional problem the customer already has.
403
00:31:13.698 --> 00:31:19.581
Treatments will be a major upsell pathway, and that is another reason we are prioritizing humans on the phone.
404
00:31:19.701 --> 00:31:23.644
We are intentionally leaning into the customer who wants a national brand.
405
00:31:24.484 --> 00:31:28.026
Here's a truth that matters for owners and GMs to understand.
406
00:31:28.366 --> 00:31:33.489
A large portion of customers, maybe 70%, prefer hiring the local provider.
407
00:31:33.909 --> 00:31:35.190
They like the local story.
408
00:31:35.450 --> 00:31:37.251
They like neighborhood connection.
409
00:31:37.532 --> 00:31:38.732
They like the chuck in a truck.
410
00:31:39.112 --> 00:31:39.613
That is real.
411
00:31:39.633 --> 00:31:40.133
That is real.
412
00:31:40.233 --> 00:31:45.655
But in most markets, 70% of demand is divided among dozens of competitors.
413
00:31:46.255 --> 00:31:57.359
There is another segment, maybe 30%, that is willing to pay more, prefers professionalism, wants convenience, and will adapt technology like instant quotes and over-the-phone estimates.
414
00:31:58.139 --> 00:32:03.301
This segment often prefers a national brand for its predictability and standards.
415
00:32:03.741 --> 00:32:09.563
In many markets, 30% of the pie has very few true national brand options.
416
00:32:10.083 --> 00:32:13.844
That creates a blue ocean for us if we execute on it correctly.
417
00:32:14.365 --> 00:32:21.207
So when you occasionally receive feedback that a customer doesn't like national brands, do not interpret this as a problem.
418
00:32:21.647 --> 00:32:23.568
It is a reminder that we are choosing a lane.
419
00:32:24.168 --> 00:32:26.170
is our unique selling proposition.
420
00:32:26.710 --> 00:32:32.075
Our lane is professionalism at scale, delivered locally, backed by a national standard.
421
00:32:32.455 --> 00:32:37.440
Augusta Leads exists to solve the leads constraint and turn advertising into a system.
422
00:32:38.479 --> 00:32:43.262
The 4L framework says businesses stop growing due to one of four constraints.
423
00:32:43.822 --> 00:32:46.304
Liquidity, leads, labor, or leadership.
424
00:32:47.164 --> 00:33:02.033
This year, we attacked the leads constraint with Augusta Leads, taking management of Meta Ads, Google Ads, and Local Service Ads off the owner's plate so owners can focus on operations and team instead of campaign tinkering.
425
00:33:02.653 --> 00:33:10.092
We also attacked the leadership constraint of the 4L framework with a national recruiting campaign for general managers, which I'll cover in a moment.
426
00:33:11.019 --> 00:33:17.184
Average advertising costs at Google and Facebook continue to rise by about 10-15% per year.
427
00:33:18.004 --> 00:33:24.489
The online platforms will continue to outperform if ad tracking and budget optimization are in place.
428
00:33:25.170 --> 00:33:28.712
That is why Augusta Leads does not charge a percentage of spend.
429
00:33:29.213 --> 00:33:30.694
We charge a flat monthly rate.
430
00:33:31.174 --> 00:33:36.719
We do not want a perverse incentive to inflate your marketing budget when you do not need to spend it.
431
00:33:37.499 --> 00:33:43.367
A major unlock in 2026 will be system-level aggregation of advertising data.
432
00:33:44.027 --> 00:33:48.473
When we can see what works across the network, we can share winners and trends.
433
00:33:48.954 --> 00:33:55.962
This info is available to all of Augusta Nation, regardless of whether you're using the Augusta Leads program or you're running ads yourself.
434
00:33:56.627 --> 00:34:03.333
For example, we are currently seeing that roughly 80% of Google Ads clicks are on the call now or similar button.
435
00:34:03.973 --> 00:34:08.517
That observation changes how we build campaigns and tracking strategies.
436
00:34:09.358 --> 00:34:15.443
After the spring 2026 quarter, you will start seeing these regular reports from the Augusta Leads department.
437
00:34:16.178 --> 00:34:23.763
Alongside that, we will keep building the done-for-you ads tutorial in the Academy so you can understand the levers, not just outsource them.
438
00:34:23.883 --> 00:34:29.047
And one additional initiative tied to Augusta Leads manages a lot for multi-location expansion.
439
00:34:29.647 --> 00:34:36.072
In 2026, we intend to launch a program that will guarantee 100 recurring customers for new locations.
440
00:34:36.792 --> 00:34:38.053
More details will come in the fall.
441
00:34:38.414 --> 00:34:48.242
The objective is to remove guesswork during launches, reduce extended burn, and give owners confidence that new territories can get to profitability within four months.
442
00:34:48.782 --> 00:34:51.785
That kind of predictability changes expansion behavior.
443
00:34:52.105 --> 00:34:52.546
Leadership.
444
00:34:53.006 --> 00:34:55.949
Building a GM pipeline that makes copy and paste viable.
445
00:34:56.089 --> 00:35:00.553
We recently ran a national campaign to source general managers for new locations.
446
00:35:01.133 --> 00:35:07.839
The goal is to support existing owners who want to copy and paste locations and build a business that runs without them.
447
00:35:08.740 --> 00:35:10.842
We sourced over 1,700 applicants.
448
00:35:11.342 --> 00:35:20.490
We used Spark Hire videos as part of the evaluation and built a roster of more than 50 qualified general managers willing to relocate to serve Augusta Nation.
449
00:35:21.271 --> 00:35:27.993
We will continue to do so later in 2026 to meet the ongoing need for qualified GMs willing to relocate.
450
00:35:28.773 --> 00:35:35.236
This is one of the first real steps towards solving the leadership constraint of the 4L framework at a system level.
451
00:35:35.696 --> 00:35:40.397
Multi-location growth cannot remain dependent on luck or personal networks.
452
00:35:40.777 --> 00:35:42.518
We need a repeatable pipeline.
453
00:35:43.238 --> 00:35:48.002
Labor and liquidity are constraints in the 4L framework, and we intend to solve them down the road.
454
00:35:48.102 --> 00:35:48.782
Preferred vendors.
455
00:35:49.143 --> 00:35:51.584
More value, more leverage, more professionalism.
456
00:35:51.725 --> 00:35:54.587
We will continue to add more value through preferred vendors.
457
00:35:55.147 --> 00:36:03.794
In 2025, we added preferred vendor relationships, including Exmark, Ford, General Motors, Boss Snowplows, Liberty Insurance, among many others.
458
00:36:04.094 --> 00:36:06.396
In 2026, we will continue to add more.
459
00:36:06.996 --> 00:36:15.544
leveraging the leverage that comes from being in the Landscape 100 and becoming a brand that larger manufacturers and insurers want to work with.
460
00:36:16.385 --> 00:36:21.009
This matters because the discounts are meaningful, but the credibility is just as important.
461
00:36:21.610 --> 00:36:25.554
It reinforces that Augusta is not a random collection of small contractors.
462
00:36:26.034 --> 00:36:29.396
is a professional network with purchasing power and standards.
463
00:36:29.617 --> 00:36:33.780
The 21 stages of success is a core pillar of our professionalization mission.
464
00:36:34.040 --> 00:36:36.982
21 stages of success is not a side idea.
465
00:36:37.522 --> 00:36:39.744
It is a mechanism for changing an industry.
466
00:36:40.404 --> 00:36:45.348
Seven stages for technicians, seven stages for general managers, seven stages for owners.
467
00:36:45.768 --> 00:36:48.650
This framework breaks the dead-end job mentality.
468
00:36:49.050 --> 00:36:52.173
It creates upper mobility inside the same ecosystem.
469
00:36:52.693 --> 00:36:59.996
It creates a roadmap for the technicians to become leaders, for leaders to become owners, and for owners to become multi-location operators.
470
00:37:00.436 --> 00:37:06.998
It also creates something most home service companies never build, a ladder people can climb without leaving.
471
00:37:07.878 --> 00:37:14.781
This career progression ties directly to the copy-and-paste method and the 3F program, Franchise Fee Forgiveness.
472
00:37:15.461 --> 00:37:22.125
People can advance inside Augusta Nation, build the career, and create a roadmap for the next person behind them to do the same.
473
00:37:22.986 --> 00:37:29.229
This is how professionalism spreads, not through slogans, but through structured advancement and repeatable systems.
474
00:37:29.530 --> 00:37:33.112
Copy and Paste, a formulaic template for multi-location growth.
475
00:37:33.592 --> 00:37:38.335
We created a template for starting multiple locations called the Copy and Paste Training System.
476
00:37:38.835 --> 00:37:41.037
It was developed by Nick Reed, Lee Park, and myself.
477
00:37:41.597 --> 00:37:42.518
It is on the dashboard.
478
00:37:42.819 --> 00:37:48.365
It is designed to make multi-location expansion formulaic rather than just improvising.
479
00:37:48.866 --> 00:37:50.528
It includes two ways of expanding.
480
00:37:51.068 --> 00:37:56.394
One is the more conservative approach where you ghost a location and expand with lower financial risk.
481
00:37:56.955 --> 00:38:00.199
The second is starting from scratch and growing aggressively for four months.
482
00:38:00.219 --> 00:38:01.080
The second is starting from scratch
483
00:38:01.260 --> 00:38:06.002
The copy and paste training system is a roadmap to open one location per year.
484
00:38:06.622 --> 00:38:14.626
The system includes templates for general managers, evaluations, projections, planning documents, and a clear roadmap, so expansion is not guesswork.
485
00:38:15.106 --> 00:38:25.231
It also leaves room for the owner to learn the skill of managing managers while still being aggressive and growth-oriented, including being tax-efficient in how expansion is structured.
486
00:38:26.031 --> 00:38:30.574
Multi-location expansion should feel like disciplined execution, not gambling.
487
00:38:31.354 --> 00:38:38.578
Effective March 1, 2026, new locations will pay $35,000 to secure a franchise license and territory.
488
00:38:38.918 --> 00:38:42.260
This move increases the value of existing franchise licenses.
489
00:38:42.640 --> 00:38:42.980
Why?
490
00:38:43.461 --> 00:38:50.865
We do not charge a franchise renewal fee, and we do not increase or update fees to the new owner if you sell your location.
491
00:38:51.705 --> 00:38:57.809
Existing owners will have until January 1, 2030 to secure locations for $20,000.
492
00:38:57.889 --> 00:39:08.235
Our goal is to support existing owners in growing and moving up the stages of success, specifically stage 6, copy and paste.
493
00:39:08.275 --> 00:39:12.338
The $20,000 ensures the franchise covers legal, training, and setup costs.
494
00:39:12.898 --> 00:39:18.422
The discount rewards the first 200 Augusta Nation owners on our path to 1,000 locations.
495
00:39:19.262 --> 00:39:22.323
We have cut the marketing budget for new franchise ads to $0.
496
00:39:22.743 --> 00:39:26.805
This time, resources, and attention are now going towards existing owners.
497
00:39:27.385 --> 00:39:34.588
EPC calls, or expansion planning calls, with Leapark will ensure that owners have a plan, a budget, and full support as they grow.
498
00:39:34.748 --> 00:39:38.550
Brand consistency and compliance are non-negotiable as we scale.
499
00:39:39.350 --> 00:39:43.633
As the brand becomes more recognized, the cost of inconsistency rises.
500
00:39:44.274 --> 00:39:49.738
By January 1st, 2027, all existing truck wraps must be upgraded to the new designs.
501
00:39:50.379 --> 00:39:52.720
This was communicated with plenty of notice two years ago.
502
00:39:53.241 --> 00:39:54.061
The reason is simple.
503
00:39:54.322 --> 00:39:56.023
Brand consistency compounds.
504
00:39:56.603 --> 00:40:04.550
We are seeing more and more leads from customers who move to another state and call Augusta as their preferred provider without even getting other prices.
505
00:40:05.230 --> 00:40:08.395
simply because they're used to our professionalism and our standards.
506
00:40:08.575 --> 00:40:10.017
That kind of trust is fragile.
507
00:40:10.437 --> 00:40:14.223
It depends on consistent experience and consistent presentation.
508
00:40:14.984 --> 00:40:18.268
To maintain brand integrity, we must enforce consistency.
509
00:40:19.095 --> 00:40:28.060
Alongside that, we have taken steps to ensure that by summer 2026, all locations comply with the insurance standards outlined in the franchise agreement.
510
00:40:28.761 --> 00:40:35.185
This includes at least a million dollars in general liability and auto insurance and lists the franchise as an additionally insured.
511
00:40:35.865 --> 00:40:37.826
This is not bureaucratic, it is protective.
512
00:40:38.426 --> 00:40:42.987
As we scale, we must prevent cross-contamination of liability across locations.
513
00:40:43.707 --> 00:40:49.949
One location making poor decisions or having an accident should not create ripple effects for the rest of the network.
514
00:40:50.589 --> 00:40:55.751
Compliance protects owners, protects the brand, and protects the system's long-term durability.
515
00:40:56.211 --> 00:40:59.852
The economic backdrop supports our shift towards recurring services.
516
00:41:00.172 --> 00:41:04.313
In 2026, we are seeing tightening in real estate in some markets.
517
00:41:04.933 --> 00:41:08.376
On average, prices have been sideways, but there's a dispersion.
518
00:41:08.837 --> 00:41:10.558
Some markets continue to expand.
519
00:41:11.119 --> 00:41:14.802
Some markets have seen prices decrease by 10-15%.
520
00:41:15.523 --> 00:41:19.186
When homeowners feel richer, project work is easier to sell.
521
00:41:19.886 --> 00:41:27.713
When home prices soften and interest rates remain higher than historical averages, customers become more cautious with discretionary spending.
522
00:41:28.174 --> 00:41:31.217
They defer one-time improvements and stick to maintenance.
523
00:41:31.897 --> 00:41:38.319
That environment pushes the industry towards recurring services, which aligns directly with the shift we are already making.
524
00:41:38.939 --> 00:41:43.701
Higher quality revenue, recurring work, scheduled service, and professional delivery.
525
00:41:43.921 --> 00:41:44.941
Why all of this matters?
526
00:41:45.861 --> 00:41:51.483
Augusta Nation exists to change the level of professionalism in the lawn care and landscape industry.
527
00:41:52.043 --> 00:41:53.744
That mission is not abstract.
528
00:41:54.324 --> 00:41:56.845
It shows up in specific behaviors and systems.
529
00:41:57.465 --> 00:42:12.582
answering every call, using humans when humans are needed, using AI as leverage, not as a gimmick, providing instant quotes, offering treatments at a professional level, tracking advertising like professionals, raising prices confidently,
530
00:42:13.243 --> 00:42:24.634
building multi-location operators, creating career paths through the 21 stages, enforcing compliance that protects the networks, maintaining brand consistency that earns trust.
531
00:42:25.415 --> 00:42:30.200
Consistency is how we build a brand that customers seek out, even when they move across the country.
532
00:42:30.800 --> 00:42:34.243
Consistency is how we build a network that attracts top talent.
533
00:42:34.884 --> 00:42:37.346
Consistency is how we build something that lasts.
534
00:42:38.149 --> 00:42:41.330
To every owner who is raising standards and making hard decisions.
535
00:42:41.670 --> 00:42:45.191
To every technician who executes in the field when the days are long.
536
00:42:45.671 --> 00:42:49.312
To every general manager who carries responsibility with professionalism.
537
00:42:49.832 --> 00:42:53.253
To every command center agent who represents the brand in their voice.
538
00:42:53.814 --> 00:42:58.495
To every family member who supports someone in Augusta Nation through the spring rush season.
539
00:42:59.015 --> 00:42:59.435
Thank you.
540
00:43:00.115 --> 00:43:01.096
The moat is forming.
541
00:43:01.716 --> 00:43:02.996
The system is maturing.
542
00:43:03.656 --> 00:43:04.937
The standards are rising.
543
00:43:05.957 --> 00:43:08.922
2026 is not about flashy growth for its own sake.
544
00:43:09.543 --> 00:43:15.013
It's about disciplined execution, higher quality revenue, and building infrastructure that compounds.
545
00:43:15.594 --> 00:43:17.236
I'm grateful to build this with you.
546
00:43:17.777 --> 00:43:18.258
Mike Andes.
