# Glossary

One-line definitions for every defined term in the vault.

## Concepts

- **Leaky Bucket Business Model** — a metaphor for how local businesses lose revenue through operational holes (missed calls, slow follow-up, dead databases, bad reviews); see [[concept-leaky-bucket-model]].
- **5-Employee AI System** — a bundled offer of five specialized AI workers that together replace a marketing department; see [[concept-5-employee-ai-system]].
- **Database Reactivation** — using conversational AI to re-engage a business's dormant past-customer list and generate zero-ad-spend revenue; see [[concept-database-reactivation]].
- **AI Reputation & Referral Management** — an automated system that solicits feedback, routes happy customers to public reviews and unhappy ones to a private form, then asks for referrals; see [[concept-reputation-management]].
- **Website Lead Nurturing** — an AI agent that responds to website form-fills via SMS within 5 minutes, 24/7, to solve speed-to-lead; see [[concept-website-lead-nurturing]].
- **Missed Call Text-Back** — auto-SMS to callers when a business fails to answer the phone, capturing the lead before they call a competitor; see [[concept-missed-call-text-back]].
- **Paid Ads with AI Nurturing** — pairing paid ad campaigns with instant SMS AI follow-up so no ad-generated lead is wasted; see [[concept-ai-nurtured-ads]].
- **Lazy Niche Strategy / Conveyor Belt Model** — specializing in one niche so the AI system is built once and copy-pasted per client; see [[concept-lazy-niche-strategy]].
- **Franchise Owner Targeting** — selling exclusively to franchisees to leverage their referral networks for viral pre-sold inbound; see [[concept-franchise-owner-targeting]].
- **Ad-Driven Client Acquisition** — using Facebook lead ads with AI follow-up instead of cold outreach to acquire agency clients; see [[concept-ad-driven-client-acquisition]].

## Frameworks

- **AI Reputation Management Flow** — the 5-step gated SMS feedback process (rate 1–5 → branch to public review or private form); see [[framework-reputation-flow]].
- **4-Criteria Niche Selection Rubric** — Proof of Concept, TAM ≥10k, High Ticket / High LTV, Growing Market; see [[framework-niche-selection-rubric]].

## Claims

- **Single automations fail** — single-point AI automations don't move the needle when other bottlenecks remain; see [[claim-single-automations-fail]].
- **5-minute follow-up = 400% lift** — instant follow-up vs. ~42-hour baseline produces dramatic conversion improvement; see [[claim-5-minute-follow-up]].
- **62% missed-call rate** — JP's claimed average for US local brick-and-mortar; see [[claim-missed-calls-percentage]].
- **Franchise referrals** — one delivered franchisee produces dozens of inbound pre-sold leads; see [[claim-franchise-referrals]].

## Contrarian Insights

- **Sell systems not ads** — plug operational leaks before turning on paid media; see [[contrarian-sell-systems-not-ads]].
- **Franchises over independents** — skip mom-and-pop; target franchisees; see [[contrarian-franchise-vs-independent]].
- **Ads over cold outreach** — skip the cold-DM grind; run paid lead ads; see [[contrarian-ads-over-cold-outreach]].

## Entities

- **JP Middleton** — speaker; agency owner; founder of GymMembersNow; see [[entity-jp-middleton]].
- **GymMembersNow (GMN)** — JP's gym-franchise-focused AI automation agency; see [[entity-gym-members-now]].
- **Alex Hormozi** — entrepreneur and author of *$100M Offers* / *$100M Leads*; mentioned in passing; see [[entity-alex-hormozi]].
- **Alan** — a payment processor formerly associated with Hormozi; minor mention; see [[entity-alan]].
- **Claude** — Anthropic's LLM; used here for niche evaluation and ad copy; see [[entity-claude]].
- **ChatGPT** — OpenAI's LLM; used here for ad copy and Custom GPTs; see [[entity-chatgpt]].

## Quotes

- **Leaky Bucket** — *\"It doesn't matter how much water they pour into the bucket...\"*; see [[quote-leaky-bucket]].
- **Five Workers** — *\"Five workers sold together is an offer that literally nobody else has.\"*; see [[quote-five-workers]].
- **Zero Outreach** — *\"I signed over 200 gym owners without reaching out to a single one.\"*; see [[quote-no-outreach]].

## Action Items

- **Reactivate first** — deploy database reactivation Day 1 of any new client; see [[action-reactivate-before-ads]].
- **Target franchises** — prospect only franchise owners; see [[action-target-franchises]].
- **Run ads for clients** — Facebook lead ads to acquire agency clients; see [[action-run-ads-for-agency]].

## Prerequisites

- **SMMA / Agency Model** — basic understanding of how a B2B agency operates (retainers, clients, churn); see [[prereq-agency-model]].
- **Facebook Ads Manager** — baseline fluency with Meta's campaign hierarchy and lead-gen objective; see [[prereq-facebook-ads-manager]].

## Open Questions

- **Software platform** — which CRM/automation platform hosts the 5-employee architecture? See [[question-software-platform]].
- **Prompt engineering** — what prompts and guardrails are used to keep the AI on-script? See [[question-ai-prompt-engineering]].

## Adjacent / Industry Terms

- **SMMA** — Social Media Marketing Agency; the broader category of B2B local-business marketing agencies.
- **Speed to Lead** — elapsed time between a lead submitting their info and the business making first contact; lower is better.
- **TAM** — Total Addressable Market.
- **LTV** — Lifetime Value of a customer.
- **TCPA / FCC** — US regulations governing SMS, calling, and auto-dialer consent.
- **FTC** — US Federal Trade Commission; regulates review solicitation and gating.
- **MCTB** — Missed Call Text-Back.
- **GoHighLevel (GHL)** — the most likely (unconfirmed) underlying platform for the architecture; see [[question-software-platform]].
- **Acquisition.com** — Alex Hormozi's current investment/education platform; see [[entity-alex-hormozi]].