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 boss

Chapters:

00:00 "You're a company for no one"

00:23 $70K a month to $1.7M a month, on a team of four

01:09 The surgeon who walked out of the operating room

02:55 The $700 wall before anyone gets treated

07:11 "I wanted to make the Honda for healthcare"

10:24 The rebrand that nearly doubled revenue in 2 weeks

11:55 He ran zero ads for six months, then turned Meta on

18:40 The uglier ad usually wins

21:01 A 6,000-follower affiliate outselling mega accounts

25:59 How four people hold 30%+ net margins

28:13 64% cart abandonment, and why he says only

31:02 Building a cult on a pharmacy, and the tattoo test

43:30 Losing the Meta account five times at $50K a day

48:37 Would he sell, and the honest answer

54:11 The tech moat is gone. The brand is the asset now

57:07 The one lever he'd pull at $100-300K a month

1:00:46 Where to find Adam and AlgoRX

Full chapter list and transcript: https://ecomgrowthinsider.com/episode/adam-hotchkiss-algorx-bootstrapped-telehealth-team-of-four

Connect with Adam:

Instagram: https://www.instagram.com/drhotch/

YouTube: https://www.youtube.com/@DrHotch

X: https://x.com/drahotch

AlgoRX: https://algorx.ai

AlgoRX 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.

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