Helping a Marketing Agency Scale Past $5M/Year — Transcript

Full transcript

1. 0:00My name is Julian. I own High Ticket
2. 0:01Solutions. We help founders scale their
3. 0:03uh high ticket offer online. We take
4. 0:05over sales and marketing. 2/3 of the
5. 0:07business, all they have to do is fulfill
6. 0:08on the clients that we
7. 0:10you know we sell to.
8. 0:11>> find the influencers or they come to
9. 0:13you?
10. 0:13>> Um a lot of our clients are organic for
11. 0:16the founders that we work with. They've
12. 0:17come to us organically. But uh we we
13. 0:20scale their offers. The biggest problem
14. 0:22that we've noticed is fulfillment on
15. 0:23their side. So we sell a lot, but they
16. 0:26cannot fulfill sometimes on the amount
17. 0:27of people that we're sending them.
18. 0:29>> Mhm.
19. 0:29>> Um and the other thing is that we want
20. 0:31to scale
21. 0:32uh past 5 million in revenue, which is
22. 0:34what we're currently doing for for us.
23. 0:36>> How many people do you have that you're
24. 0:38doing the stuff for?
25. 0:39>> Uh right now we have about six clients.
26. 0:42>> Okay.
27. 0:42>> Yeah. And we want to scale to like uh
28. 0:44you know 50 clients plus. We have a lot
29. 0:47of uh closers on different sales teams
30. 0:49for different offers.
31. 0:50>> What's the what's the delivery?
32. 0:53>> The delivery? So
33. 0:55um for our
34. 0:56No, I know you
35. 0:57>> No, I know you sell [ __ ] but what do
36. 0:57they do?
37. 0:58>> What do they do? Yeah, so they're um
38. 1:01financial services.
39. 1:03Uh they could be in the e-commerce
40. 1:04space, coaching space, uh
41. 1:07real estate space.
42. 1:08>> So coaches.
43. 1:10>> Coaches and also people that do done for
44. 1:12you services for customers.
45. 1:14>> And the done for you service like what's
46. 1:16the split between those two?
47. 1:18>> Uh the split between us and
48. 1:20>> No, coaches versus done for you
49. 1:21services.
50. 1:23>> Uh
51. 1:25What split are you
52. 1:26>> Revenue. You have six people. What
53. 1:28percentage are done for you services
54. 1:31>> I would say 80% done for you.
55. 1:33>> Okay. So you have one or two people who
56. 1:36are coaches.
57. 1:37>> Yeah.
58. 1:37>> And the other four are
59. 1:39>> uh in the done for you space.
60. 1:41>> I don't really know what that means. So
61. 1:43like
62. 1:43>> So basically it's more like um so if
63. 1:46people want to grow a business and they
64. 1:48don't want to do the business on their
65. 1:49own, they have somebody that can build
66. 1:51the business for them and they get a
67. 1:52revenue share off of that.
68. 1:54Uh off of the business that was built by
69. 1:56the founder on their behalf. So, they
70. 1:59buy in.
71. 2:00So, for example, if they have a uh
72. 2:02For example, uh if the offer is like
73. 2:04let's say $50,000 to get started,
74. 2:07>> So, this is biz op
75. 2:09>> Yeah.
76. 2:09>> when you say done for you?
77. 2:13Tough.
78. 2:15Super regulated, man.
79. 2:17Um
80. 2:20Dude, why don't you just sell
81. 2:21franchises? They're legit.
82. 2:24You'll make way more money.
83. 2:27Like I'm guessing you have the skill of
84. 2:28marketing and sales. That's what you
85. 2:30acquired. You haven't really acquired
86. 2:31the delivery skill set. That's okay.
87. 2:34And
88. 2:35I just like I'm cuz I'll just tell you
89. 2:37where this is going to go. So,
90. 2:41there's there's kind of like version one
91. 2:42is let's say that your dreams come true
92. 2:44and you have 50 customers. You don't
93. 2:45want 50 customers. That sounds horrible.
94. 2:48And you have 50 minnows. So, you're
95. 2:51going to realize from 50 that you really
96. 2:52only have four that are 70% of your
97. 2:54revenue. And then you're like, "Why am I
98. 2:55even doing this when these four are the
99. 2:57major people?" And you know what? I I've
100. 2:58made these guys so much money I should
101. 2:59have equity in these businesses.
102. 3:01Um but there's no value in the equity
103. 3:03because they're biz op.
104. 3:05So, it's it's
105. 3:07it's tough because the underlying
106. 3:09businesses that you're selling for
107. 3:11are sketchy.
108. 3:13It's gray.
109. 3:14Arguably illegal.
110. 3:16Um just not enforced when it's small.
111. 3:18>> you say franchises, can you tell me a
112. 3:20little bit more about that?
113. 3:21>> Yeah, like you could like done for you
114. 3:22totally is legal when it's under
115. 3:25regulated stuff. Like franchises have
116. 3:27regulations and that's
117. 3:29it but it protects both sides. You know,
118. 3:31you can sell a 10-year franchise and get
119. 3:32150,000 up front and the guy who does
120. 3:34this franchise sale makes 150 of that.
121. 3:38So, like super profitable businesses.
122. 3:40And a lot of times they do get
123. 3:4310, [snorts] 20, 30% stakes in the
124. 3:46franchisor, sorry, the uh yeah, the
125. 3:48franchisor's uh parent co.
126. 3:51And those do have enterprise value.
127. 3:54>> And what about the coaching space?
128. 3:56Like uh
129. 3:57>> I think it's a great place to learn
130. 3:58skills.
131. 4:00It's not What do you want to have
132. 4:01happen? Do you want to sell this
133. 4:02business? You just want to make more
134. 4:03money? Like what do you want to have
135. 4:04happen?
136. 4:05>> I don't want to sell it. I want to grow
137. 4:06it cuz I think that's a little bit, you
138. 4:08know, we it's
139. 4:09>> want to make more money.
140. 4:10>> Yeah.
141. 4:11>> Okay. I mean,
142. 4:12you can grow this business. I think that
143. 4:15you'll quickly find that you should just
144. 4:17find better partners and that's how
145. 4:18you'll grow it rather than taking on the
146. 4:20people that you have. You said they come
147. 4:22to you, which means they probably need
148. 4:24to have some function of getting them.
149. 4:27Um
150. 4:28>> Well, we already have like, you know, we
151. 4:29do we help for ads and marketing and
152. 4:31sales. So, we already have our own
153. 4:33funnels.
154. 4:34>> Yeah, but you only have six customers.
155. 4:35>> Yeah, I understand. But, we want to we
156. 4:37want to scale correctly. Like, for
157. 4:38example, operation side, you know, we
158. 4:40already know the constraints
159. 4:41>> I'm not trying to beat you up on this.
160. 4:42I'm just saying like if the model's like
161. 4:45Name me one big business that does this.
162. 4:51>> Right.
163. 4:53>> Cuz it sucks at scale.
164. 4:56And you can't control too many of the
165. 4:57things that you are liable for.
166. 5:02Like it would be very easy for me to
167. 5:03just like be like, all right, here's I
168. 5:04mean, like
169. 5:05I can tell you the things to do to grow
170. 5:06this business. I just don't think what
171. 5:07it grows into is something you'll want.
172. 5:09>> So, you say franchise or franchise
173. 5:11>> switch what you're selling your high
174. 5:12ticket stuff for.
175. 5:13>> Yeah.
176. 5:14>> I would go find the same people who are
177. 5:15paying $50,000 for some e-commerce coach
178. 5:17to say here's an Amazon store, which for
179. 5:19no way are they going to get the $50,000
180. 5:21back, to selling a legitimate franchise
181. 5:23that has earnings disclosures, it has
182. 5:26actual, you know, typical returns,
183. 5:29um that someone can expect that has, you
184. 5:31know,
185. 5:31you know, if it like the ideal space is
186. 5:33find finding a a franchisor who has a
187. 5:36good business model, doesn't know how to
188. 5:38promote, and those are those are
189. 5:40actually fairly common. Um so, it's a
190. 5:41very small percentage of franchisors
191. 5:43gets even 100 locations. It's like 5%.
192. 5:45It's a tiny amount. But, a lot of people
193. 5:47make being a franchisor their like
194. 5:50dream. So they go do the franchise thing
195. 5:51they spend 250, 500 grand to get all the
196. 5:53legal [ __ ] done.
197. 5:54They sell their friends and family. They
198. 5:55have 10, 15 locations they get open and
199. 5:58then the franchise stalls cuz they don't
200. 6:00know how to attract customers but
201. 6:02they're not willing to pay franchise
202. 6:03sales people an arm and a leg which is
203. 6:05what it cost. But if you get to be the
204. 6:08arm and the leg then that sounds lovely.
205. 6:11So like I've
206. 6:13obviously I've come from a world that
207. 6:14was very heavy in franchising and so
208. 6:16like I have multiple friends who like
209. 6:18gave 30% of their business away that are
210. 6:21selling for nine figures to franchise
211. 6:23sales orgs.
212. 6:24So like I think you have a viable
213. 6:26skillset and I think you are applying it
214. 6:28to the wrong opportunity. And I think
215. 6:30that the the coaches are going to fizzle
216. 6:32and pop and the fact that you talk about
217. 6:34things in terms of offers is hardcore
218. 6:36direct response world.
219. 6:39I think that world is also dying.
220. 6:41I think CAC is going up trust is only
221. 6:43going down. I don't think it's a
222. 6:44sustainable long-term thing. So didn't
223. 6:47mean to [ __ ] your [ __ ] up but like I
224. 6:49just think that that's like for real I
225. 6:51think that you're like okay but now what
226. 6:52do I do when I go home, right? I mean if
227. 6:54I'm you I'd I'd be thinking that.
228. 6:56I'd be thinking like I'm going to reach
229. 6:57out to franchises. And I'm going to do
230. 6:59the same things but I'm going to market
231. 7:00compliantly.
232. 7:02Cuz right now I'm sure if you had a have
233. 7:03you ever had a FTC attorney like audit
234. 7:05all your funnels?
235. 7:06>> Yeah so we have our lawyers stuff that
236. 7:08>> Yeah sure like
237. 7:10>> No but I understand what you're saying.
238. 7:11But the thing is is that obviously you
239. 7:13know uh
240. 7:14we we are already like you know
241. 7:17compliant on those things. So it's just
242. 7:19that we want I think what you brought up
243. 7:21is something that I've already thought
244. 7:22about already so
245. 7:24>> Sell a better thing.
246. 7:25>> Yeah. Cuz it doesn't matter what we can
247. 7:27sell it's just the thing it's the
248. 7:28fulfillment
249. 7:29>> Yeah. Their [ __ ] sucks. Yes.
250. 7:32>> So so
251. 7:34>> sell a dream. They do not fulfill that
252. 7:36dream. That sucks.
253. 7:39>> No I understand. I understand
254. 7:40>> It's like
255. 7:40>> using your powers for evil right now.
256. 7:42Like use them for good.
257. 7:43>> For real.
258. 7:46Yeah, so we we were looking at It's
259. 7:47funny you mentioned that cuz I actually
260. 7:48was
261. 7:49that was a one of the past So, besides
262. 7:51franchisors, do you have any other
263. 7:53uh
264. 7:54>> Oh, I mean do they If you If you know
265. 7:55how to do turnkey sales, there's a ton
266. 7:56of different businesses that you could
267. 7:58that can that can benefit from that. You
268. 8:00just need to use your powers for things
269. 8:01that are legit.
270. 8:05Thanks.
271. 8:06>> [laughter]
272. 8:07>> No, but for sure. I I understand what
273. 8:08you're saying, and that's definitely
274. 8:09what how we feel about it as well. So,
275. 8:11>> Well, well then great. So, like that's
276. 8:13what we should do. We should not be
277. 8:14thinking how do we go from six to 50.
278. 8:16>> but I was just saying abstract like just
279. 8:18>> Yeah.
280. 8:19>> I wasn't saying like
281. 8:20>> So, I would say like in the next 12
282. 8:21months we go from six to six except we
283. 8:23replace the six we have with six legit
284. 8:25ones. And if we do a really good job,
285. 8:26what we'll find out is that we could
286. 8:27just have one that can really [ __ ]
287. 8:29scale, and then we just do that. We
288. 8:30become true partners, and we just grow
289. 8:31the thing.
290. 8:33Cuz there's nothing that like it would
291. 8:34be easier for you
292. 8:36to grow one thing that's a really legit
293. 8:38product or service
294. 8:40to 100 million a year than it will be
295. 8:41for you to try and grow 20 to 50.
296. 8:43>> No, but that that's what I'm saying.
297. 8:44It's always in the legit space that I
298. 8:46was always speaking of. The only thing
299. 8:49is that operations-wise, you know, as
300. 8:51you scale,
301. 8:53like what would you say like for for us
302. 8:55it's like more on our operations side.
303. 8:57Like how would we
304. 8:59uh scale
305. 9:01with more clients, let's say in the
306. 9:02franchise space.
307. 9:04How do we do it efficiently without
308. 9:06having any bottlenecks on our operations
309. 9:08side?
310. 9:10Uh
311. 9:10>> Well, you're running ads, and you're
312. 9:11selling.
313. 9:12>> Yeah.
314. 9:14>> What are the What are your operational
315. 9:15bottlenecks?
316. 9:17>> Well, I would say it's high turnover of
317. 9:19sales people, you know, obviously not
318. 9:21performing to quotas.
319. 9:22>> Okay.
320. 9:23>> Okay.
321. 9:23>> once you get people who stick, do they
322. 9:24stick?
323. 9:25>> Yeah.
324. 9:25>> Okay.
325. 9:27I mean, it's a high turn
326. 9:28It's It You have to think about it in
327. 9:29cohorts. So, if it's like you hire three
328. 9:31and you keep one, but then that one
329. 9:33stays for three years, then it's just
330. 9:34like it's just cohort turn, and then
331. 9:36after that it sticks.
332. 9:38But sales is a
333. 9:39is traditionally a higher churn area. My
334. 9:43guess though, again, like you're saying
335. 9:44it's not this, but everything you're
336. 9:46saying is this. Is that you're selling
337. 9:48high-ticket biz op [ __ ] and you have
338. 9:50mercenaries in your team. And
339. 9:52mercenaries just are they they jump town
340. 9:54as soon as they get 1% more somewhere
341. 9:56else.
342. 9:57They're not loyal.
343. 9:59And I think if they were really
344. 10:00passionate about the business and the
345. 10:01people they were helping, they wouldn't
346. 10:02care as much.
347. 10:06>> Okay, super. Thank you.
348. 10:08>> [laughter]
349. 10:10>> Thanks, man.
350. 10:11I want you to win long-term. That's why
351. 10:13I'm trying to say it.
352. 10:15If you like this video and you're
353. 10:16business owner who wants to break
354. 10:17through your current revenue ceiling, I
355. 10:19distilled every lesson from scaling 10
356. 10:20businesses past 10 million and three
357. 10:22businesses past 100 million into a
358. 10:24completely free scaling road map that
359. 10:26I've used to go from zero to one, zero
360. 10:27to 10, and zero to 100 plus. And so you
361. 10:30can click here and you can check it out.
362. 10:31Again, absolutely free. And since you're
363. 10:33business owner, I appreciate you and
364. 10:34enjoy.