Resources for Buying and Selling Online Businesses

Zero % Churn For This AI-Centric Cart Abandonment SaaS

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Valon Xhafa

Valon Xhafa is the Founder of Behamics, a SaaS company that combines behavioral science and artificial intelligence to reduce cart abandonment. Valon has more than six years of experience with AI/machine learning software and previously worked for Google building data-driven applications. He earned his master’s degree in computer science from the Technical University of Munich.

Here’s a glimpse of what you’ll learn:

  • [03:39] Valon Xhafa talks about different factors of cart abandonment
  • [09:09] How to install Behamics to remove friction with your cart abandonment campaigns
  • [11:20] Valon explains how to measure your revenue generated with Behamics
  • [14:36] The key to increasing conversion rates by up to 15%
  • [17:17] What are some benefits of better communication with consumers?
  • [20:44] Valon shares how his company achieves a zero percent churn rate

In this episode…

How can you optimize your user experience to generate more revenue? What would reducing your cart abandonment rate mean for your sales and brand success?

Valon Xhafa founded a software that combines AI and behavioral science to decrease cart abandonment issues, optimize the consumer experience, and increase conversion rates by up to 15%. According to Valon, it’s important to build a campaign that reduces the friction between the consumer and your product. He designed his software to help you create campaigns that improve consumer engagement, then track their success through split testing — and he’s achieved a zero percent churn rate in the process.

In this episode of the Quiet Light Podcast, Joe Valley sits down with Valon Xhafa, Founder of Behamics, to discuss his tried-and-true software for decreasing cart abandonment. Valon talks about the key factors of cart abandonment, what better communication with consumers can do for your brand, and actionable steps to forge stronger partnerships — and achieve a lower churn rate.

Resources Mentioned in this episode

Sponsor for this episode

This episode is brought to you by Quiet Light, a brokerage firm that wants to help you successfully sell your online business.

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If you’re new to the prospect of buying and selling, Quiet Light is here to support you. Their plethora of top-notch resources will provide everything you need to know about when and how to buy or sell an online business. Quiet Light offers high-quality videos, articles, podcasts, and guides to help you make the best decision for your online business.

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Episode Transcript

Intro 0:07

Hi folks, it’s the Quiet Light Podcast where we share relentlessly honest insights, actionable tips, and entrepreneurial stories that will help founders identify and reach their goals

Joe Valley  0:29

Hey folks, welcome back to another episode of the Quiet Light Podcast I want to give my friend Stephen Speer a shout out on this one Stephen lent me actually sent me this beautiful What is this a pullover, right? It’s a north face pullover with his logo right there front and center. Ecommercelending.com If you are a entrepreneur or would be an entrepreneur that wants to buy an online business and wants to do it with an SBA loan, reach out to Stephen at Ecommercelending.com. If you’re a competitor of Quiet Light and listening into this and you just need a really good connection with an E commerce or an SBA lender, reach out to Stephen Speer and eCommerce Lending. He’s a good guy can help you with all of your financial woes. If it’s an SBA deal, and pretty soon beyond so might be able to touch base with him, regardless. All right, jump into the actual podcast and the actual host, the guest of today’s show, we’ve got Valon Xhafa with us, he’s from Behamics, which is really cool software that’s going to make your life easier. As you know, many of you that are entrepreneurs now or would be entrepreneurs that are buying FBA businesses, you really need to jump off of FBA partially right FBA half the world shops, they’re on Amazon. So I think it’s a great idea to be selling on Amazon. So if you just buy on your own website, or Shopify or whatever you want to call it, and you’re not selling on Amazon, please do because there’s, you know, 50% of the world’s population dies there, at least the US population. But if you are mostly selling on Amazon and struggling on the Shopify side, with cart abandonment, things of that nature conversion rate, Behamics is the place to to go to learn and improve your cart abandonment rate. I’m not going to pretend like I know much about it. You know, me, folks, I asked lots of questions, because I’m ignorant to most things. So Valon Welcome to the Quiet Light Podcast. Appreciate you being here.

Valon Xhafa  2:36

Sure. Thanks for having me here.

Joe Valley  2:39

Tell us about Behamics and how you got started with building the software for for the folks that are out there listening.

Valon Xhafa  2:48

Yeah, for sure Behamics is a is an AI SAS platform that reduces shopping, cart abandonment on online stores, without providing coupons or sending follow up emails, these traditional means of producing cars, vans that you usually see online, right? You go online and you when the brand or the shop knows that you’re about to leave without buying, then they try to hook you up with a coupon, right? So my Hey, who’s like 100%, this call and please bought, if you still end up leaving without buying, then they will probably send you an email if they have your email and say like, Hey, Joe, we see that you left two products in the cart, here’s maybe an ologists on Please come back. Right. And this is kind of like how card abandonment is reduced these days, or at least, let’s say actually for a better way to say how it’s kept constant at the 70%, which means like seven 0% of customers who shop online the abandoned carts, and they don’t buy it right. And what we have noticed is that price is not always the main thing or is not the main thing, why customers abandon the cart. So there are a lot of factors why customers abandon the cart. And we identify these reasons and factors. And that’s why we decided to build the epic. So as I said earlier, and the phone will behave mix and I left Google like three years ago, to start Behamics, I met my co founder who is a payroll psychologist or a PhD in behavioral science for online stores. So there was like a great match in our backgrounds because I was an AI engineer and he was a PhD in behavioral science in econ. So we both work with customers and consumers online shopping experiences and all stuff and then we yeah, we pretty much quit our jobs very, very quickly. That was like over a weekend. We met over a weekend we decided the next week that hey, we should quit our jobs and get all in this thing. We believe you

Joe Valley  4:43

had met him before and you just get swapped ideas love the idea and said The heck with it. Let’s go for it.

Valon Xhafa  4:49

Yeah, that’s actually that’s actually the story. I’m still amazed to this day because I got a lot of all everyone pretty much my social life. They were like not supportive of this because they said, like, Hey, you just met the person just over the weekend. And you’re like quitting? What if he doesn’t quit? Right? What if he doesn’t commit to the idea and all stuff, right? But the thing is that it’s like with the love in the first slide, you know, that was kind of like loving the first slide in terms of like business partnership. Because in the past, I also had another startup where I had an exit. And Google pretty much had invested a precede money. And we had an exit. And I knew kind of like the relationship with co founders. So as soon as I saw my co founder, I thought, well, he’s the one right and yeah, that’s what we did. So we quit our jobs. We’re next week. And my family freaked out pretty much my friends, everyone else. Right. So the

Joe Valley  5:42

first sight from for a business partner. That’s interesting. I haven’t heard that approach before. I’m thinking of my dear, dear business partner, partner, Mark Daoust. I’ve talked about him often he’s officially you know, the co host of this Quiet Light Podcast, but he hasn’t. He hasn’t hosted one for I think, at least a year. Usually, when he does, they’re better just be clear. I thought Mark was incredible. Actually, he was helping me instead of helping himself when we first met. And that’s the kind of guy I wanted to work with. So good for you for making that choice. Now, how long ago was this that you two decided to up and quit your jobs and

Valon Xhafa  6:20

become business partners? That was like three and a half years ago? Pretty much. Yeah.

Joe Valley  6:26

So it’s worked out pretty well so far. Yeah.

Valon Xhafa  6:29

I mean, I’m just amazed by the partnership with my co founder and how things actually move forward. And know like, one of the reasons why startups fail is because there are some issues with the CO founding team, you know, so this is like a major issue. And in our case was like, it was completely open communication and honesty and like commitment. And that’s why we were kind of like, able to grow fast. And within three months, pretty much bowler MVP, raise money, get customers, and pretty much scale, right. So it went pretty well and still going pretty well. Even though the crazy part. By the way, it’s not the it’s not the love. And the first side story, it’s more that we build a business pretty much in remote. And it was like pre pandemic. So we didn’t actually see each other in person, which means that we build a company, we raised money, we got the first client, and we still didn’t meet in person. So the meeting that I had over the weekend, that was actually the first meeting and the last meeting person to raise the money. And it was building remote. But again, we were like in contact all the time, pretty much. So I was more in contact with him than with everyone else. And some little stuff. So

Joe Valley  7:41

and you’re originally from Kosovo, he’s in Switzerland, but you live in the States in New York. Now if I understand it correctly, it’s all right. Exactly. Yeah. And he still lives in Switzerland. in Zurich? Exactly. Yeah.

Valon Xhafa  7:54

Is there a

Joe Valley  7:55

good, good, good? Alright, let’s, let’s jump into more of the, the the tool itself and why it’s important. First of all, you know, I think it’s an important topic to discuss, because so many people are trying to survive off of Amazon, mainly because their businesses become much more valuable when they’re not selling most of their products and services through Amazon. So I think it’s important to do little tweaks like this as much as possible. But you know, I was I was watching your tutorial video. And the young lady that was talking about it said that you don’t have to manage it or do anything with it, you just install it and it runs. Can you can you talk about that. So the the installation of the software and how it operates and how it’s going to work because I’m not a tech guy. So anytime there’s, you know, software involved, even even just like for the EXITpreneurs Playbook, I do a terrible job of sending emails out. I should just hire somebody, and I haven’t done that. So is it as easy as she said, what’s involved with installing the software?

Valon Xhafa  8:59

Yeah, actually, this is a worry. This is a we’re a differentiating factor of the game. It’s not the main one. But it’s a really a big deal that we managed to make it this way. Because usually the tools that I use, I play Wii U and all this like personalization tools, which obviously were not a personalization tool, but like you can draw comparisons here. They are tools, you know, which means that a client a brand, they have to acquire this tool, and then they have to use it on their own, which means that they have to assign additional people employees to use exactly come on welcome pains and the ideas on how to use these tools. And still they cost a lot of money, which means that they don’t guarantee you that you’re going to have success. It’s just a tool, you know, so you have to build the end product yourself. In the case of Behamics, Behamics is not a tool. Behamics is an engine, which means that it’s an end to end solution. You install it. It comes with pre bold campaigns that we know that work because we have been testing these campaigns for like a long time. We know which white have consumers they abandon the cart. So we know specifically where to tackle these issues and how to remove these frictions. So pretty much when you install Behamics, it’s just like installing Google Analytics. If you have, if you’re like, and online shopping business, you know how to install Google Analytics, right? It’s just like a JavaScript snippet away. Yeah. And that’s pretty much it. And this is not just for the installation part, but it’s also for the usage of a gimmick. So pretty much you don’t have to do anything here at all. Yeah, so

Joe Valley  10:28

let’s go with the Google Analytics. And you’re saying the Behamics is an engine, which is, like the analogy with Google Analytics, I install it. But then I have to learn how to run reports, I need to still do a lot of different things. Do I not have to do that with Behamics, in order to understand my total cart abandonment rate? How many people decided to buy because of the Behamics messages that came up? Can I drive? Can I can I tell what kind of revenue is generated with behavior? Can I do a split test and not have every customer see those messages and really, really see if it’s working, without without, without being a tech guy, I don’t have to hire somebody to do this. Right?

Valon Xhafa  11:10

Yeah, that’s actually the most important thing that you don’t have to assign technical resources to this. Even if you have like 10 teams, you still don’t have to use it or assign them, which means that as soon as the install Behamics, through the jobs code snippet, we provide you a, an access to our dashboard. And the dashboard is pretty much most of the time view only. It’s not that you have to add something or it’s not that you have to change or maintain or whatsoever. And by view only means that you just go and see the KPIs or the dollar amounts we’re generating for you additionally. So you can see the main KPIs like conversion rate, average or better value, for the most important KPIs for us, is a total additional revenue generated for your store. Because this is like the main KPI that Behamics optimizes the store and uses the whole AI system to kind of like, increase it. So that’s pretty much that’s pretty much it, regarding the split test and everything else. So as soon as you install Behamics, that’s a bolt in a B testing tool comes with Behamics to that single script that you just injected. And which means that your customers will be likely divided into like control and a test automatically, you don’t have to do anything else. And you will be able to see the results of a b testing all the time, not just during the trial period. Because usually, here’s the story, like when you when you buy a tool, or let’s say some sort of service or third party service, they usually do like a trial for a month or two, right, and then they just go with a flat fee based on that or something, you know, the issue here is that the traffic within the resort changes drastically from day to day, you know, so you may end up, let’s say, pay more than you actually getting from the tool, you know, because you’re not doing the tests all the time, and Behamics and Behamics, we always keep a control group intact, which means that always you will be able to go to the dashboard and see how much Behamics is making you every hour every month, every day pretty much.

Joe Valley  13:16

Okay, so at some point, if I don’t want to do any split testing, and just have it roll out site way to all visitors, I can do that

Valon Xhafa  13:21

as well. Exactly right. So you can, you can pretty much do it usually the way we do. Like, if there is a trial, we go 5050 during the trial. And as soon as, as soon as the trial is completed, we always we still keep we still recommend the clients or partners to keep a 10% control. Because again, this is real important so that you always know how much pain is making for you. If you remove the whole split testing, then it’s kind of like it’s a bit like, vague and you don’t know specifically right? Alright, so you’re

Joe Valley  13:55

having I hate to call them popup messages that are you know, reinforcing people’s decision and helping them make additional decisions because you don’t block anything. I don’t have to exit out of it. It just shows up on the screen in a very unobtrusive way. And to be specific to the customer. That’s the key differentiator. Well, one of them the other is that people are just offering discounts and doing everything they can smart shoppers just abandoned carts and wait for the email to come come through with a discount coupon. So that’s a key factor here. Let’s talk about actual sort of case studies and examples. You know, a store that’s doing a million dollars in revenue on an annual basis what would their typical cart abandonment rate be?

Valon Xhafa  14:47

It should be it really depends on the on the sore what the source tells remarkable right so understood like if you if you take like an average, if you take like an average Valley it should be around like 70% like seven Zero

Joe Valley  15:00

70% cardio in the right, okay, and when someone installs Behamics, what does that get reduced to?

Valon Xhafa  15:10

That number 70% can go up to like 55%. Pretty nice. Which means like, exactly right. So and because, again, is in correlation with revenue, you should see an increase in conversion rate up to like 15%. Pretty much. So these are like usually the numbers we see across different different brands using dynamics and stays.

Joe Valley  15:33

So any increase in conversion rate by up to 15%.

Valon Xhafa  15:39

Exactly said, so

Joe Valley  15:40

we’d go from 3% abandonment rate to I’m sorry, 3% conversion rate to 3.45 conversion rate or something like that. And that little bit can make a pretty big difference. Is that Is that what you’re talking about this? Conversion rates are usually what, two or 3%?

Valon Xhafa  15:56

No, actually, actually, in terms of like the conversion rate, this can go even to up to like four or 5%. Pretty much, you know, whatever, like 10, that’s

Joe Valley  16:05

what’s being increased by 15%. Exactly, yeah. I’m just doing math, because I’m so good at math, I have a calculator. So an extra an extra three quarters of a percent. I just want people doing the math and you know, they’re listening. So we’ve got, you know, an extra three quarters of a percent. You know, how many, I guess it all depends upon the total number of visitors. But even if you’ve just got 100,000 visitors every month, I say just that’s probably a lot. That’s 7500 conversions. That’s obviously a very big number. Let’s talk let’s, let’s talk actual case, studies, instead of Joe doing his fuzzy math over here. Typical dollar amount for somebody like what, give me some examples of what you’re seeing people earn for by like by simply subscribing and installing the engine behind next.

Valon Xhafa  17:00

Yeah, um, yeah, for sure. So we are usually working with like applying from like small shops, to like enterprise level accounts. And from small shops, you can definitely see like increase in revenue, as said before, like the revenue process are really the main KPI here, you can usually see like increase in revenue up to like two or 3k additional dollars per month to like enterprise, the cons that we have right now that they actually make like up to 10 million additional dollars per month. So this is kind of like the range, as you can see here. And these are kind of like some of the case studies. And again, this is without providing coupons, or sending emails or whatsoever, it’s just a better communication with your consumer, your customers. And by communication, I mean, like just nudging them as soon as they’re about to make a bad decision, or as soon as they are about to leave, and nudging them without using these kind of like intrusive pop ups. Right. So

Joe Valley  18:01

what is the is the cost of the Behamics, the same whether it’s that $2,000, untried to the small enterprise business or the large one, its cost is the same.

Valon Xhafa  18:13

So Behamics this kind of like performance. So we do have like, two different models of the pricing, we do have like a flat fee, which is more preferred for like, enterprise level accounts, right. And we do have a performance based model, which means that it’s free, unless we don’t make you money. And as soon as we started making money, we usually get like a small percentage of that increase in revenue. So imagine if we make your, like, $10,000 additional dollar per month, then we could take like, two $300 Out of that, you know, so it’s kind of like performance based, which do you prefer?

Joe Valley  18:51

Which do you prefer as a as a business owner? You’re an entrepreneur, so you would you rather go, you know, give me the flat fee, so I know what I’m getting? Or would you be like, hell, this shit really works, let’s go performance based because I’m making a whole lot more money.

Valon Xhafa  19:04

I’m, personally I’m, I’m kind of like I am more for the performance based. And there are like two reasons here. And the reason is that, or the main reason is that this drives us as Behamics to improve our models and our engine all the time. Because the more we improve our models, and our AI, the more we can make for clients, which means that we, the more we can also make for ourselves, you know, so this is kind of like a win win for all sides. And this drives innovation a lot instead of like the flat fee, you know, the do gonna go at the same dollar a month for a year. So you stop innovating completely because what’s the idea here, right. But this, this, this pricing model is really innovative and actually has pushed us to actually push the boundaries of AI, application and income the law then like every day, we come up with new stuff and new, different ways of understanding consumers and why they are making specific decisions so that we can tackle these decisions. And then that way, we also like improve the customer experience and the shopping experience in the store, but also our models. So it’s like a, it’s like a source of innovation, this pricing model,

Joe Valley  20:15

two out of 100 new clients that you bring on that choose the performance model, what percentage of them do not earn any money for?

Valon Xhafa  20:30

Actually zero. And the really interesting part is that we do have also like a zero churn rate is zero churn, right? Yes, since we have started live pretty much so we do have clients for the last three years. That’s insane.

Joe Valley  20:43

You have a zero churn rate. Oh, wait, we do. Yeah, that’s amazing. You should just use your just start with that. Yeah. I mean, that’s I’ve never come across a company that’s ever had a churn rate before. It’s always it’s always the challenge when we’re working with SAS companies trying to exit is often the churn rate.

Valon Xhafa  21:03

Yeah, there are actually two reasons why this is the case. And the first is that the performance based model, because you don’t have to settle down and then plan and do like this one year agreements and all stuff, right? Like, it’s month to month, pretty much pretty much where clients can can quit or contract or a partnership, like within a month, you know, but no one actually did it. You know. So the best way of the best way of keeping keeping relationships up is not enforcing the relationships and having a flat long term fee, or agreement is kind of like enforcing the relationship, you know. So in this case, we said like, Look, you have like, we do have like a month to month, pretty much like payments. If you’re not happy, or you don’t want to continue, you can just quit right away. But nobody quits. Nobody quits. And the other reason is that we are transparent. And this is also connected back to the control group that we keep all the time. Maybe you recall it. And the ABX testing, yeah, which means that, which means that whenever your CFO or whoever makes a decision, that ball using for bar tooth want to want to just see all this is going on whether they have to cancel this partnership whatsoever, they can just go into a dashboard, see that Behamicsmade them money all the time? Pretty much, you know.

Joe Valley  22:25

So it’s kind of an easy decision, how long would it take me? If I don’t have any commerce business? But if I do, if I did, how long would it take me to set this up? Um, install the engine, let’s say,

Valon Xhafa  22:42

as as long as as much time as pretty much installing Google Analytics. So it’s just like dropping the dropping for JavaScript.

Joe Valley  22:51

So literally, literally less than for less than 30 minutes, probably more like 10 minutes.

Valon Xhafa  22:55

Exactly. Right. So that’s, that’s kind of like the way and before that we can also like provide you like a without even installing Behamics, we provide you a full visibility on how games would look like on your store without actually installing on your store only through this, like browser extension, right? You just install the browser. And you can go to your store and see how ba mix looks like for you pretty much as an individual user, right? So that you have a better understanding, called, let’s say responsiveness is working of these different notches, and how Behamics feels in your store so that you don’t have to go install it and then see how this looks like. Right? So pretty much how to feeling.

Joe Valley  23:36

Yeah, is this really is it primarily for e-commerce business owners or can SAS and content business owners use it as well, if they’ve if they’re selling something? Obviously, SAS is but if content business owner might be selling, you know, links that they want people to click or ads that they want to click that it’s not going to work for them necessarily is a physical product owner.

Valon Xhafa  23:57

It’s mostly like the last this kind of like for, for like products. Yeah, mostly. But we were we’re actually doing right now case on this was some not product related, or service service stores that sell services service pretty much or tickets, you know, so we have actually seen that there, we could also have great results. So pretty much in the future, we would see that that could also be like a space where a vertical, we could actually provide the service, but at this stage is mostly like this whole streamline process that we have built, it’s more streamlined for the common terms like selling physical products,

Joe Valley  24:35

okay. So you can install it in less than 10 minutes. But before you install it, you’re actually going to show me how it looks on my website so that I can go Oh, that’s great or no, that’s too intrusive. You’ll also do a deal where it’s not actually going to cost me anything unless you sell a product for me and increase sales. And you’ve never had a customer leave. This is kind of a no brainer all around well I, why aren’t you doing 100 million in revenue? Where are you?

Valon Xhafa  25:06

Here’s a sore. Here’s a sore, ecom is the worst slow moving process. So to say that one more time, the e-commerce e-commerce is like your word traditional space. Yeah, in a way that one of the main reasons why we’re still having the same shopping experience as we had 20 years ago, which not a lot of changes, you know, is because it’s a slow economy. It’s the slow moving market in terms of like innovation. So if you go to like to go to a specific store, you will rarely see AI applied on optimizing your user experience. And we were kind of like, surprised when we started working, because the more we talked to brands and clients, the more we found out that AI is there’s like a huge lack of AI application EComm. So we were like so surprised. The most advanced thing that you can actually usually see, are these recommendation engines, right, that have been along in the market for like years now. But that’s where pretty much the advancement of AI in e-commerce stops or ends. That’s why so yeah,

Joe Valley  26:12

yeah. Now look, man, this is something that hopefully, hopefully this podcast will get some people looking at it talking about it using it. I mean, obviously you’re doing well, you’ve been at it for three and a half years now. It sounds incredibly impressive. I personally looked at it, folks. I again, I do not have any commerce business. Yes, I’ve got the book website, but I just have people ordering on Amazon. So taking the easy route. They’re really impressive. Valon really, really impressive with what you’re done here. How? How do people find you? How do people reach out to you? How do people test, test this out and then give it a shot?

Valon Xhafa  26:51

They can definitely reach out on our landing page on our website, which is like Behamics.com.

Joe Valley  26:57

Let me spell it out for folks. Yeah, because they can understand my broken English better than yours. Yeah, right. It’s Behamics.com.

Valon Xhafa  27:07

I get that right. Yeah. All right. Good is

Joe Valley  27:13

Behamics.com. filling out the forms, they are anywhere else that they can reach out to you if they want to connect and chat or anything like that.

Valon Xhafa  27:19

They can also reach out to me like on LinkedIn or my LinkedIn profile, they can just drop me a message and then we can pretty much at okay, I’ll put the

Joe Valley  27:29

LinkedIn connection folks in the show notes. You can find him Valon. And the last name is spelled Xhafa. If you want to search them and I’ve got the feeling you’d be the only 1am I wrong. Is that right? You got a petition for that name? Or is that a unique one?

Valon Xhafa  27:51

For the first name, it’s not a unicorn. It’s very common, actually. Yeah, in Albanian. But the last thing that combination first name and last name, I think there are only two people in the world. That’s amazing, all of them. So it’s pretty unique. The combination.

Joe Valley  28:05

That’s amazing. There’s too many Joe Valleys in the world. So good for you. Good for you. I’m gonna change my name, folks. That’s it. I’m done. Valon, great to have you here. Thanks for sharing your expertise and try to revolutionize the e-commerce world and install some AI to help with cart abandonment in this particular case. Appreciate you coming on the show.

Valon Xhafa  28:27

Thanks a lot, Joe, for having me. It was a great discussion. And yeah, till next time.

Joe Valley  28:34

All right, folks, thanks for sticking around listening to another episode of the Quiet Light Podcast. Give me a big favor. If you wouldn’t mind. I don’t ask for much. But go ahead and click the Like button, whatever platform you’re using. Follow install, download all of that stuff to improve our rankings and ratings. much appreciate it folks. We’ll see you next week.

Outro  28:55

today’s podcast was produced by Rise25 And the Quiet Light content team. If you have a suggestion for a future podcast, subject or guest, email us at [email protected] Be sure to follow us on YouTube, Facebook, LinkedIn, Twitter and Instagram and subscribe to the show wherever you get your podcasts. Thanks for listening. We’ll see you next week.

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