Did This CEO Make $450M In The Last 18 Months?

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GM! It's Friday, May 12th - Today we're covering an under-the-radar business that may have made $450M+ for its CEO in 15 months. Let's unpack Bottom Line Savings. 

FEATURE

Did This CEO Make $450M In The Last 18 Months?

Alex Moeller is the founder of WiFi Money with 2M+ Instagram followers. He boasts a supposed $10M monthly income...obviously that piqued my interest. 

It turns out he uses his large social media presence to drive referral partners to a company called Bottom Line Savings and takes 5% of all their commissions.

So, What’s Bottom Line Savings?

Bottom Line Savings is a consulting firm that recovers refunds and savings for companies by assessing their run costs and helping them apply for government programs. 

While Bottom Line Savings has been around for 14 years, they’ve turned their focus on the government cash cow, the Employee Retention Tax Credit program.

Through the ERC, businesses can recover up to $26k per W2 employee. Bottom Line CEO Josh Fox claims that they've assisted 15,000 businesses recover close to $3B in the past 15 months. 

Bottom Line Savings makes money through a contingency model that charges companies 15-30% of any returns they receive. With a contingency model, Bottom Line Savings only makes a profit when businesses recover funds, so it’s an attractive risk-free endeavor. 

How They Win

Bottom Line has purportedly become the second-largest firm that processes ERC returns for businesses. In a Zoom meeting with prospective Bottom Line Savings recruits, CEO Josh Fox stated that they already have 24,000 ERC agents.

It’s their referral partner model that attracts social media influencers, like Alex Moeller, that’s led to their rapid expansion. 

Here are the two referral programs that’s caused rapid growth for Bottom Line Savings 

  • Direct referrals: When individuals or companies like iHub global refer a business to Bottom Line, they earn 17-20% of Bottom Line’s contingency fee. 

  • Affiliate bonus: Bottom Line encourages their agents to build an “affiliate network”, akin to a pyramid scheme, in which you take 5% off all commissions from agents you’ve recruited. So, when you sign up through Moeller’s WiFi Money website, you become his personal affiliate and he takes a chunk of your commissions.

Filing ERC claims for businesses can be dull work, but when you have influencers boasting a $10M monthly income and exotic vacation pictures, it’s easy to get new recruits. 

Key Observations

Bottom Line Savings has succeeded by creating consumer demand with their contingency model that offers a risk free opportunity for businesses and incentivizing a steady supply of workers through their referral program. 

Contingency is a great sales model. In fact, a healthcare data company called HealthDataInsights sold for $400m helping hospitals save money.  

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