Am I Selling a Dream I Can't Deliver? — Transcript

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1. 0:00We help founders scale their high ticket
2. 0:02offer online. We take over sales and
3. 0:04marketing two-thirds of the business.
4. 0:06All they have to do is fulfill in the
5. 0:07clients that we
6. 0:08you know, we sell to.
7. 0:09>> find the influencers or they come to
8. 0:10you?
9. 0:11>> Um a lot of our clients are organic for
10. 0:14the founders that we work with. They've
11. 0:15come to us organically. But uh we we
12. 0:18scale their offers. The biggest problem
13. 0:19that we've noticed is fulfillment on
14. 0:21their side. So we sell a lot, but they
15. 0:24cannot fulfill sometimes on the amount
16. 0:25of people that we're sending them.
17. 0:27>> Mhm.
18. 0:27>> Um and the other thing is that we want
19. 0:29to scale
20. 0:30uh past 5 million revenue, which is what
21. 0:32we're currently doing for for us.
22. 0:34>> How many people do you have that you're
23. 0:36doing this stuff for?
24. 0:37>> Uh right now we have about six clients.
25. 0:40>> Okay.
26. 0:40>> Yeah. And we want to scale to like uh
27. 0:42you know, 50 clients plus. We have a lot
28. 0:45of uh closers on different sales teams
29. 0:47for different offers.
30. 0:48>> What's the what's the delivery?
31. 0:51>> The delivery? So
32. 0:53um for ours
33. 0:54>> No, I know you sell [ __ ] but what do
34. 0:55they do?
35. 0:56>> What do they do? Yeah, so they're um
36. 0:59financial services.
37. 1:01Uh they could be in the e-commerce
38. 1:02space, coaching space,
39. 1:04uh real estate space.
40. 1:06>> So coaches.
41. 1:08>> Coaches and also people that do done for
42. 1:10you services for customers.
43. 1:12>> Okay. And the done for you service like
44. 1:14what's the split between those two?
45. 1:16>> Uh the split between us and
46. 1:18>> No, coaches versus done for you
47. 1:19services.
48. 1:21>> Uh
49. 1:23What split are you
50. 1:24>> Revenue. You have six people. What
51. 1:26percentage are
52. 1:27done for you
53. 1:28>> Um also, I would say 80% is done for
54. 1:30you.
55. 1:31>> Okay. So you have one or two people who
56. 1:34are coaches.
57. 1:35>> Yeah.
58. 1:35>> And the other four are
59. 1:37>> uh in the done for you space.
60. 1:39>> I don't really know what that means. So
61. 1:40like
62. 1:41>> So basically it's more like um so if
63. 1:44people want to grow a business and they
64. 1:46don't want to do the business on their
65. 1:47own, they have somebody that can build
66. 1:49the business for them and they get a
67. 1:50revenue share off of that.
68. 1:52Uh off of the business that was built by
69. 1:54the founder on their behalf. So they buy
70. 1:57in.
71. 1:58So, for example, if they have a uh
72. 2:00For example, if the offer is like, let's
73. 2:03say $50,000 to get started.
74. 2:05>> This is a biz op. When you say done for
75. 2:08you.
76. 2:11Tough.
77. 2:13Super regulated, man.
78. 2:15Um
79. 2:18Dude, why don't you just sell
80. 2:19franchises? They're legit.
81. 2:22You'll make way more money.
82. 2:25Like, I'm guessing you have the skill of
83. 2:26marketing and sales. That's what you
84. 2:28acquired. You haven't really acquired
85. 2:29the delivery skill set. That's okay.
86. 2:32And
87. 2:33I just like I'm cuz I'll just tell you
88. 2:35where this is going to go. So,
89. 2:39there's there's kind of like version one
90. 2:40is, let's say that your dreams come true
91. 2:42and you have 50 customers. You don't
92. 2:43want 50 customers. That sounds horrible.
93. 2:46And you have 50 minnows. So, you're
94. 2:49going to realize from 50 that you really
95. 2:50only have four that are 70% of your
96. 2:52revenue and then you're like, why am I
97. 2:53even doing this when these four are the
98. 2:55major people? And you know what? I I've
99. 2:56made these guys so much money. I should
100. 2:57have equity in these businesses.
101. 2:59Um but there's no value in the equity
102. 3:01because they're biz op.
103. 3:02>> [laughter]
104. 3:03>> So, it's it's
105. 3:05it's tough because the underlying
106. 3:06businesses that you're selling for
107. 3:09are sketchy.
108. 3:11It's gray.
109. 3:12Arguably illegal.
110. 3:14Um just not enforced when it's small.
111. 3:16>> you say franchises, can you tell me a
112. 3:18little bit more about that?
113. 3:19>> Yeah, like you could like done for you
114. 3:20totally is legal when it's under
115. 3:23regulated stuff. Like franchises have
116. 3:25regulations and that's
117. 3:27it but it protects both sides. You know,
118. 3:29you can sell a 10-year franchise and get
119. 3:30$150,000 up front and the guy who does
120. 3:32this franchise sale makes $150 of that.
121. 3:35So, like super profitable businesses and
122. 3:39a lot of times they do get
123. 3:4110, 20, 30% stakes in the
124. 3:44franchisor sorry, the yeah, the
125. 3:46franchisor's parent co.
126. 3:49And those do have enterprise value.
127. 3:52>> And what about the coaching space?
128. 3:54Like uh
129. 3:55>> I think it's a great place to learn
130. 3:56skills.
131. 3:58It's not What do you want to have
132. 3:59happen? Do you want to sell this
133. 4:00business? You just want to make more
134. 4:01money? Like what do you want to have
135. 4:02happen?
136. 4:02>> I don't want to sell it. I want to grow
137. 4:04it cuz I think that's a little bit, you
138. 4:06know, we it's
139. 4:07>> You just want to make more money.
140. 4:07>> Yeah.
141. 4:08>> Okay. I mean
142. 4:10you can grow this business. I think that
143. 4:13you'll quickly find that you should just
144. 4:15find better partners and that's how
145. 4:16you'll grow it rather than taking on the
146. 4:18people that you have. You said they come
147. 4:20to you, which means they probably need
148. 4:22to have some function of getting them.
149. 4:24Um
150. 4:25>> Well, we already have like, you know, we
151. 4:27do we help for ads and marketing and
152. 4:29sales. So we already have our own
153. 4:30funnels.
154. 4:31>> Yeah, but you only have six customers.
155. 4:33>> Yeah, I understand. But we want to we
156. 4:35want to scale correctly. Like for
157. 4:36example, operation side, you know, we
158. 4:38already know the constraints on that.
159. 4:39>> trying to beat you up on this. I'm just
160. 4:40saying like if the model's like
161. 4:43Name me one big business that does this.
162. 4:48>> Right.
163. 4:51>> Cuz it sucks at scale.
164. 4:54And you can't control too many of the
165. 4:55things that you're liable for.
166. 5:00Like it'd be very easy for me to just
167. 5:01like be like, all right, here's I mean
168. 5:02like
169. 5:02I can tell you the things to do to grow
170. 5:04this business. I just don't think what
171. 5:05it grows into is something you'll want.
172. 5:07>> So you say franchise or franchise
173. 5:09>> switch what you're selling your high
174. 5:10ticket stuff for.
175. 5:11>> Yeah.
176. 5:12>> I would go find the same people who are
177. 5:13paying $50,000 for some e-commerce coach
178. 5:15to say, "Here's an Amazon store." Which
179. 5:17for no way are they going to get the
180. 5:18$50,000 back. Just selling a legitimate
181. 5:20franchise that has earnings disclosures,
182. 5:23it has actual, you know, typical
183. 5:25returns. Um that someone can expect that
184. 5:28has, you know,
185. 5:29you know, a like the ideal space is find
186. 5:31finding a a franchisor who has a good
187. 5:34business model, doesn't know how to
188. 5:36promote. And those are those are
189. 5:37actually fairly common. Um so it's a
190. 5:39very small percentage of franchisors
191. 5:41gets even 100 locations. It's like 5%.
192. 5:43It's a tiny amount. But But of people
193. 5:45make being a franchisor their like
194. 5:48dream. So they go do the franchise
195. 5:49thing, they spend 250,000 to get all the
196. 5:51legal [ __ ] done.
197. 5:52They sell their friends and family. They
198. 5:53have 10, 15 locations they get open, and
199. 5:56then the franchise stalls cuz they don't
200. 5:58know how to attract customers, but
201. 6:00they're not willing to pay franchise
202. 6:01sales people an arm and a leg, which is
203. 6:03what it cost. But if you get to be the
204. 6:06arm and the leg, then that sounds
205. 6:07lovely.
206. 6:09So like I've
207. 6:11obviously come from a world that was
208. 6:12very heavy in franchising. So like I
209. 6:14have multiple friends who like gave 30%
210. 6:17of their business away that are selling
211. 6:19for nine figures to franchise sales
212. 6:21orgs.
213. 6:22So like I think you have a viable
214. 6:24skillset, and I think you are applying
215. 6:26it to the wrong opportunity. And I think
216. 6:28that the the coaches are going to fizzle
217. 6:30and pop, and the fact that you talk
218. 6:32about things in terms of offers is
219. 6:34hardcore direct response world.
220. 6:37I think that world is also dying.
221. 6:39I think CAC is going up. Trust is only
222. 6:41going down. I don't think it's a
223. 6:42sustainable long-term thing. So I didn't
224. 6:45mean to [ __ ] your [ __ ] up, but like I
225. 6:47just think that that's like for real. I
226. 6:49think that you're like, "Okay, but now
227. 6:50what do I do when I go home?" Right? I
228. 6:52mean if I'm you, I'd I'd be thinking
229. 6:53that.
230. 6:54I'd be thinking like I'm going to reach
231. 6:55out to franchises.
232. 6:56And I'm going to do the same things, but
233. 6:58I'm going to market compliantly.
234. 7:00Cuz right now I'm sure if you had a Have
235. 7:01you ever had a FTC attorney like audit
236. 7:03all your funnels?
237. 7:04>> Yeah, so we have our lawyers stuff that
238. 7:06>> Lawyers, yeah, sure. Like
239. 7:08>> No, but I understand what you're saying.
240. 7:09But the thing is is that obviously, you
241. 7:11know, uh
242. 7:12we we are al- already like, you know,
243. 7:15compliant on those things. So it it's
244. 7:17just that we want I think what you
245. 7:19brought up is something I've already
246. 7:20thought about already. So
247. 7:22>> Sell a better thing.
248. 7:23>> Yeah. Cuz it doesn't matter what we can
249. 7:25sell. It's just the thing. It's the
250. 7:26fulfillment
251. 7:27>> Yeah. Their [ __ ] sucks.
252. 7:29>> Yeah, yeah.
253. 7:29>> Yes.
254. 7:30>> [laughter]
255. 7:30>> So so
256. 7:31>> Like you sell a dream. They do not
257. 7:33fulfill that dream. That sucks.
258. 7:37>> No, I understand. I understand
259. 7:38>> It's like you're using your powers for
260. 7:39evil right now. Like use them for good.
261. 7:41>> For real.
262. 7:43Yeah, so we we were looking it's funny
263. 7:45you mention that cuz I actually was
264. 7:47that was
265. 7:48one of the past so besides franchisors
266. 7:50do you have any other
267. 7:51>> Oh I mean do they if you if you know how
268. 7:53to do turnkey sales there's a ton of
269. 7:54different businesses that you could that
270. 7:56can that can benefit from that. You just
271. 7:58need to use your powers for things that
272. 8:00are legit.
273. 8:03Thanks.
274. 8:04>> No, but for sure I understand what
275. 8:06you're saying and that's definitely what
276. 8:08how we feel about it as well.
277. 8:09>> Well well then great. So like that's
278. 8:11what we should do. We should not be
279. 8:12thinking how do we go from six to five.
280. 8:14>> but I was just saying abstract like just
281. 8:17I wasn't saying like
282. 8:18>> So I would say like in the next 12
283. 8:19months we go from six to six except we
284. 8:21replace the six we have with six legit
285. 8:23ones. And if we do a really good job
286. 8:24what we'll find out is that we could
287. 8:25just have one that can really [ __ ]
288. 8:27scale and then we just do that. We
289. 8:28become true partners and we just grow
290. 8:29the thing.
291. 8:31Cuz there's nothing that like it would
292. 8:32be easier for you
293. 8:34to grow one thing that's a really legit
294. 8:36product or service
295. 8:38to a hundred million a year than it will
296. 8:39be for you to try and grow twenty to
297. 8:41five.
298. 8:41>> No, but that that's what I'm saying it's
299. 8:43always in the legit space that I was
300. 8:45always speaking of. The only thing is
301. 8:47that operations-wise, you know, as you
302. 8:49scale
303. 8:50like what would you say like for for us
304. 8:53it's like more on our operations side.
305. 8:55Like how would we
306. 8:57uh scale
307. 8:59with more clients let's say in the
308. 9:00franchise space.
309. 9:02How do we do it efficiently without
310. 9:04having any bottlenecks on our operations
311. 9:06side?
312. 9:08>> Well you're running ads and you're
313. 9:09selling.
314. 9:10>> Yeah.
315. 9:12>> What are the what are your operational
316. 9:13bottlenecks?
317. 9:14>> Well, I would say it's high turnover of
318. 9:17sales people, you know, obviously not
319. 9:19performing to quotas.
320. 9:20>> Okay, but once you get people who stick
321. 9:22do they stick?
322. 9:23>> Yeah.
323. 9:23>> Okay.
324. 9:24I mean it's a high churn. It's it you
325. 9:27have to think about it in cohorts. So if
326. 9:28it's like you hire three and you keep
327. 9:30one, but then that one stays for three
328. 9:31years then it's just like it's just
329. 9:33cohort churn and then after that it
330. 9:35sticks.
331. 9:36But sales is a
332. 9:37is [snorts] traditionally a higher churn
333. 9:40area. My guess though, again, like
334. 9:42you're saying it's not this, but
335. 9:43everything you're saying is this. Is
336. 9:45that you're selling high-ticket biz op
337. 9:47[ __ ] and you have mercenaries in your
338. 9:49team. And mercenaries just are they they
339. 9:52jump town as soon as they get 1% more
340. 9:53somewhere else.
341. 9:55They're not loyal.
342. 9:57And I think if they were really
343. 9:58passionate about the business and the
344. 9:59people they were helping, they wouldn't
345. 10:00care as much.
346. 10:04Okay. Super.
347. 10:05>> Thank you.
348. 10:06>> [laughter]
349. 10:08>> Thanks, man.
350. 10:09I want you to win long-term. That's why
351. 10:11I'm trying to say.
352. 10:13If you are a business owner and you are
353. 10:15not growing as fast as you'd like, I'd
354. 10:16like to give you a free gift. So, my
355. 10:18team and I put together the $100 million
356. 10:20scaling road map, which is basically 200
357. 10:22hours of us looking over all the
358. 10:23portfolio companies we've had and what
359. 10:25stages of growth they went through, and
360. 10:27more importantly, where they got stuck
361. 10:29and how they got past it. And so, we
362. 10:31broke it into these 10 stages and we
363. 10:32made this little kind of quiz thing
364. 10:34where if you put in your business
365. 10:35information, it'll tell you where you're
366. 10:36at. And the most important part for you,
367. 10:38what to do for each of functions of the
368. 10:40business across product, marketing,
369. 10:41sales, customer success, recruiting, IT,
370. 10:43human resources, and finance. And so, no
371. 10:45matter what you're struggling with,
372. 10:47someone else has already struggled with
373. 10:48it and solved it. And so, I'd like to
374. 10:50give you this thing absolutely free. You
375. 10:52can go to acquisition.com/roadmap,
376. 10:53plug in your business information, and
377. 10:55if you want us to actually help you
378. 10:57de-constrain the business and you're
379. 10:59trying to scale, we'd love to help you
380. 11:00out. On the thank you page, you can just
381. 11:02book a call with my team and we will
382. 11:04look into business, see if we can help,
383. 11:06and if we can, we'll invite you out to
384. 11:07Vegas and we'll do this in person live.