30% Net Margins on a Team of 4: How AlgoRX Hit $1.7M a Month | Dr. Adam Hotchkiss

Adam Hotchkiss runs a bootstrapped telehealth brand doing over $1.7 million a month with a team of four. Net margins above 30%, no outside investment, and he threw out the entire brand six months in to get there.Six months of purchase data told him who was actually buying: young athletic men. So he killed the clinical, stock-photo look and rebuilt AlgoRX around the people already paying. Revenue almost doubled inside two weeks.Full disclosure: AlgoRX is a HoloGrowth client. You will hear what we built together discussed from the inside, including the parts that did not work.He describes the arc as $70,000 a month at the beginning of last year, $1.4 million for the last completed month at the time we recorded, and $1.7 to $2 million projected for the month itself. They have since passed $1.7 million a month. Every figure is his.In this episode:- What six months of purchase data told him about who was really buying, and the rebrand that followed- Why he ran zero ads for six months, and what changed when he turned them on- Why the uglier ad usually wins, and why that was the hardest thing for him to accept- The 6,000-follower affiliate outselling accounts with millions, and the case for an army of small ones- How four people hold net margins above 30% on a stack they built instead of rented- What checkout friction really costs when the customer pays a doctor fee and shipping on top- Losing the ad account five or six times while fully compliant, at $50-60K a day- Why he no longer thinks the software is the asset, and what an acquirer would actually be buying- His honest answer on selling, and why an earnout means you effectively bought yourself a bossChapters:00:00 "You're a company for no one"00:23 $70K a month to $1.7M a month, on a team of four01:09 The surgeon who walked out of the operating room02:55 The $700 wall before anyone gets treated07:11 "I wanted to make the Honda for healthcare"10:24 The rebrand that nearly doubled revenue in 2 weeks11:55 He ran zero ads for six months, then turned Meta on18:40 The uglier ad usually wins21:01 A 6,000-follower affiliate outselling mega accounts25:59 How four people hold 30%+ net margins28:13 64% cart abandonment, and why he says only31:02 Building a cult on a pharmacy, and the tattoo test43:30 Losing the Meta account five times at $50K a day48:37 Would he sell, and the honest answer54:11 The tech moat is gone. The brand is the asset now57:07 The one lever he'd pull at $100-300K a month1:00:46 Where to find Adam and AlgoRXFull chapter list and transcript: https://ecomgrowthinsider.com/episode/adam-hotchkiss-algorx-bootstrapped-telehealth-team-of-fourConnect with Adam:Instagram: https://www.instagram.com/drhotch/YouTube: https://www.youtube.com/@DrHotchX: https://x.com/drahotchAlgoRX: https://algorx.aiAlgoRX on Instagram: https://www.instagram.com/algorx/This episode is a business conversation, not medical advice. Nothing in it is a recommendation to take any medication.Ecom Growth Insider is the podcast for e-commerce founders who want to scale profitably. Subscribe for episodes on paid media, CRO, offer strategy, and the operating systems behind brands that actually grow.More episodes and newsletter: https://ecomgrowthinsider.comWork with HoloGrowth: https://hologrowth.com