In the HVAC world, few stories are as impressive as CM Heating’s rise from $7 million to $40 million in five years. Behind that growth was Michael Pompeo, the company’s former Chief Revenue Officer: a sales and marketing strategist who helped shape CM Heating into one of Washington’s top-performing service companies.
In this episode of HVAC Hotshots, Michael shares exactly how they scaled, what separates million-dollar operators from multi-eight-figure companies, and why leadership, marketing, and culture always outgrow tactics.
How Michael Pompeo Built a $40M HVAC Company
Michael didn’t start in HVAC. His background was in sales, marketing, and software startups, where he spent over 15 years refining his understanding of revenue systems and human behavior. When he joined CM Heating six years ago, the company was doing about $7 million in annual revenue. Within five years, it hit nearly $40 million and was later acquired by a private equity group.
He has since transitioned into consulting, helping HVAC and home service companies install the same revenue systems that transformed CM Heating.
Lesson #1: Every $40M Company Has a Coach
When asked what separates a $1M company from a $40M one, Michael’s first answer was simple: mentorship.
“I’ve had a mentor in my life for 25 years,” he said. “Nutrition, spiritual growth, business, always someone ahead of me. You can try to figure it out alone, but that’s the slow, painful path. Big results come when you get under the guidance of someone who’s done it.”
He compares it to professional sports: even Olympic gold medalists, the best in the world, never stop having coaches. “They know what got them there, and they know that’s what keeps them there,” he said.
Lesson #2: Sales and Marketing Drive Growth
Once the foundation is set, scaling requires mastering two things: marketing and sales.
“Marketing and sales are the lifeblood,” Michael said. “If you can’t make the money appear, you’re not getting to $40 million.”
For smaller operators under $10M, he recommends learning the basics yourself or outsourcing to a proven specialist. For larger companies, it’s time to hire or partner with experts who can handle PPC, LSA, SEO, and brand advertising strategically.
He’s quick to emphasize that marketing isn’t just about ads. It’s about creating a consistent experience, from the first Google click to the final installation.
Lesson #3: Master Financial Management Early
As businesses scale, cash flow becomes the make-or-break factor.
“Seventy-five percent of businesses fail in America,” Michael said, “and the top cause is cash flow.”
He’s seen it firsthand: brilliant technicians who became business owners never learned financial literacy. His advice is to learn early and understand your P&L, breakeven point, and working capital requirements.
“Scaling from $10M to $40M means managing multi-million-dollar swings,” he explained. “If you don’t understand your numbers, you’re not running a business: the business is running you.”
Lesson #4: Delegate Before You Burn Out
Many HVAC owners become the bottleneck without realizing it. They hesitate to delegate because “no one can do it better.”
Michael’s advice: aim for 80% competence, not perfection.
“If someone can do it 80% as well as you, delegate it,” he said. “That frees you to build the next part of the company. Then coach them to reach 95%.”
He credits this principle for unlocking growth at CM Heating: empowering department leaders to own their areas and innovate independently.
Lesson #5: Build Systems Before Scaling
CM Heating’s success wasn’t about a single campaign or superstar salesperson. It was about systems.
“You can’t get to $40M without systems,” Michael said. “Without them, the company falls apart.”
He created detailed playbooks for every department: sales, installation, customer service, and finance, ensuring everyone followed the same structure. That consistency created predictability, which in turn made scaling sustainable.
Lesson #6: Culture and Character Over Credentials
When asked what really built CM Heating’s reputation, Michael didn’t hesitate: culture and character.
“You can train skill,” he said. “You can’t train character.”
Hiring wasn’t about experience. It was about attitude, professionalism, and hunger. “We wanted people who love learning, who ask questions, who take pride in their work. That’s who stays. That’s who grows.”
He admits that in the trades, it’s rare. “There are a lot of shady characters in the labor world,” he said. “You have to decide early: are you going to tolerate that or build something better?”
Lesson #7: Price Higher, and Back It Up
CM Heating charged 40% more than competitors in its market.
But Michael makes it clear: that doesn’t mean they were gouging customers. It meant they were making higher promises — and delivering on them.
“You want better margins? You need better guarantees,” he said. CM Heating offered longer, more comprehensive warranties and honored them every time. That required a larger “customer satisfaction fund,” but it built something invaluable: trust.
Their 4.9-star Google rating with over 5,500 reviews came from this obsession with customer happiness. Every review triggered a $5 donation to the Make-A-Wish Foundation, turning gratitude into goodwill.
“It’s worth every penny,” he said. “Happy customers and strong reputation equal pricing power.”
Lesson #8: The 15-for-15 Campaign
During slow shoulder seasons, CM Heating ran a simple but brilliant offer: $15 maintenance for systems 15 years or older.
“We didn’t hide the reason,” Michael said. “We told people straight: older systems often have issues, and we’d like the chance to inspect them.”
The honesty worked. The campaign flooded their service department with leads, many converting into high-value replacements.
It also reinforced a key principle: not every lead has to make a profit immediately. Sometimes breaking even is fine if it keeps your brand in motion and your technicians busy.
Lesson #9: Track the Right Metrics
At CM Heating, sales performance wasn’t judged by “close rate” alone. Instead, they tracked Revenue Per Opportunity (RPO): how much revenue each appointment generated on average.
“I had one rep closing at 75%,” Michael said, “and another closing at 40%, but their RPO was identical. One sold fewer jobs at higher tickets, the other sold more at lower ones. Both were excellent.”
The lesson: don’t micromanage style. Manage output.
Lesson #10: The Review Engine That Built a Brand
CM Heating’s 5,500+ Google reviews didn’t happen by accident.
It was a company-wide initiative. Every technician was trained to deliver impeccable service and prompt the review before leaving the home. The script was simple:
“If you feel you received five-star service today, we’d love to hear it. For every review, we donate $5 to Make-A-Wish.”
Customers loved it. It wasn’t pushy; it was purposeful. That authenticity turned reviews into referrals, and referrals into recurring growth.
Lesson #11: Marketing That Moved the Needle
CM Heating’s biggest ROI drivers were PPC and Local Service Ads, supported by strong SEO, direct mailers, and later, video campaigns.
“Once you hit $10M, it’s time for TV commercials,” Michael said. “Not because they convert instantly, but because they build brand awareness. Every big player does it because it works.”
They outsourced creative work to specialists who could produce memorable, human commercials that resonated locally. “It’s not about being fancy,” he said. “It’s about being memorable and consistent.”
Lesson #12: Customer Service with a $300 Rule
CM Heating empowered every employee with a $300 authority limit to solve customer issues instantly.
“If a customer’s unhappy, don’t leave until they’re happy,” he said. “You can offer a free fix, a hotel stay, or a discount, up to $300 without asking a manager.”
Beyond that amount, managers stepped in immediately. It eliminated delays, prevented negative reviews, and showed customers that CM Heating cared more about relationships than red tape.
Lesson #13: Start Small, Think Big
Michael closed with advice for new business owners:
“Own your infancy,” he said. “Be honest about where you are. Customers love underdogs. Tell your story, offer great deals, and deliver like your reputation depends on it, because it does.”
He encourages startups to begin with PPC for lead control, outsource to hungry partners, and focus on mastery before expansion.
“You can’t grow to $40M by trying to look like a $40M company,” he said. “You get there by acting like one internally, with systems, leadership, and consistency.”
Final Words
Michael Pompeo’s story proves that scaling isn’t about luck or a single winning campaign. It’s about structure, mentorship, and relentless focus on people.
As he puts it: “If you want premium results, you have to make premium promises, and then fulfill every single one.”
That’s the difference between a $7M HVAC company and a $40M one.
