"We're Selling the Same Product to Two Different Customers" — Transcript

Full transcript

1. 0:00Let's go.
2. 0:00>> Uh, my name's Ryan Yoshida. I run
3. 0:02Armored Heat. Uh, we sell arm health
4. 0:05programs to baseball players.
5. 0:07>> Arm health, got it.
6. 0:08>> yep.
7. 0:08>> Dude, I got to go to you. My bicep is
8. 0:10killing me. I haven't been able to even
9. 0:11do a curl curl on my left arm for a
10. 0:12month.
11. 0:13>> go, we got you.
12. 0:14>> Dude, I'm dead serious. I'll I'll figure
13. 0:15out whatever you're doing. Yeah, keep
14. 0:16going. Sorry.
15. 0:16>> Uh, last year we did 800
16. 0:18>> I care [laughter] about my biceps a lot.
17. 0:20>> Well, we'll take care of it.
18. 0:22>> [gasps]
19. 0:22>> We did uh, 830,000 last year in revenue.
20. 0:25Uh, we want to be at around 5 million in
21. 0:27the in the coming years.
22. 0:28>> Okay.
23. 0:29>> Um, what might be stopping us is we're
24. 0:31selling the same product to two
25. 0:33different uh, customers. So, we're
26. 0:35selling our same Armored Heat program to
27. 0:37one to individual athletes on the
28. 0:40one-off side of things, and then also to
29. 0:42teams, college and high school teams.
30. 0:44Essentially the exact same program, but
31. 0:46packaged in 20-25 um, accounts at a
32. 0:48time.
33. 0:49>> Okay.
34. 0:50>> Um, and so in talking with a lot of your
35. 0:52your team this week, have realized the
36. 0:55lack of clarity that comes with that in
37. 0:57messaging and and offers. Um, the same
38. 1:00time, it's like both are growing and I'm
39. 1:02hesitant to pull the plug on it when
40. 1:03there's really zero cost or time to
41. 1:05fulfill.
42. 1:06>> So,
43. 1:08let me I want to understand a little bit
44. 1:09more about the actual like deliverable.
45. 1:11Is the deliverable like login access and
46. 1:14information, or is it like your team
47. 1:16doing something to teach them stuff like
48. 1:18hands-on?
49. 1:19>> Login access to the
50. 1:20>> Okay. So, the actual deliverable is
51. 1:22literally identical. All right. So, um,
52. 1:25when I think about focus, it really
53. 1:26comes down to what is the change about
54. 1:28what I do to run this business.
55. 1:30So,
56. 1:33you basically just have two acquisition
57. 1:35channels, I'm guessing. Or like how are
58. 1:37you getting the two like is your sales
59. 1:39process and and and customer acquisition
60. 1:41process different for
61. 1:43the large guys versus small guys?
62. 1:46By the way, pause real quick. Who here
63. 1:47has two clearly different customers they
64. 1:48serve? Can you raise hands real quick?
65. 1:50Okay. Yeah, so you're not alone.
66. 1:52>> [laughter]
67. 1:53>> Yeah, keep going.
68. 1:53>> Um, no, I would say primarily mostly
69. 1:55coming from from organic social and paid
70. 1:57social. Um pre- just started running the
71. 2:00paid social to the team side of things
72. 2:01that are very much targeted there. Um
73. 2:04but I've broadly had it about arm health
74. 2:05previously and instead of getting
75. 2:07specific.
76. 2:08>> Got it. What's LTV to CAC on individuals
77. 2:10versus teams?
78. 2:11>> So individuals LTV is 360 and then CAC's
79. 2:15right around 120.
80. 2:16>> Is this a subscription?
81. 2:17>> Yes.
82. 2:18>> What's the price for it?
83. 2:19>> It's 45 a month or 450 a year. So
84. 2:23>> Got it. And you're saying 1,200 is the
85. 2:25LTV on a customer?
86. 2:27>> No. LTV is is uh 360 $360.
87. 2:31>> So a little less than 450. Can I have
88. 2:32everyone pay for the year?
89. 2:33>> Yeah, exactly. Yeah, yeah.
90. 2:34>> Okay. So that's the consumer side. And
91. 2:35then um what was the What was the other
92. 2:38one?
93. 2:38>> So the team side lifetime value it's
94. 2:40still 3 years in so still early but I
95. 2:43confidently say 6 to 8,000 on the team
96. 2:46side of things. And then just started
97. 2:48running the ads so I don't know that our
98. 2:49CAC is super clear at this point.
99. 2:51>> That's fine. Okay. So we've got team
100. 2:53here.
101. 2:55Okay. And then how many
102. 2:57um
103. 2:58uh
104. 2:59how many
105. 3:00customers
106. 3:02are you selling Do you have like what's
107. 3:03the split here in terms of revenue right
108. 3:05now?
109. 3:05>> 40 60 team 40% um individuals.
110. 3:08>> Oh, really?
111. 3:09>> Yeah, it's a flip-flop this last this
112. 3:11previous year.
113. 3:12>> Yeah, that's interesting. So the more
114. 3:13valuable version of the business is the
115. 3:15team thing for sure. No question. Um
116. 3:18because the thing is is like you know,
117. 3:19they keep getting older you keep staying
118. 3:20the same age
119. 3:21uh because the teams will graduate
120. 3:22players but the teams will stay the
121. 3:24same.
122. 3:24>> Yep.
123. 3:25>> And so that's the value because the team
124. 3:26can be really sticky. The end consumers
125. 3:27won't be. Now that being said it doesn't
126. 3:29mean like the brand has to be like
127. 3:31I think it's
128. 3:33To answer your question I would be fully
129. 3:34focused on the team side as the as the
130. 3:37main revenue driver. From a branding
131. 3:39perspective I think you doing things
132. 3:41with like people in pictures and all or
133. 3:43out of whatever players you have um is
134. 3:46good for the brand overall cuz long term
135. 3:47you want baseball players coming into
136. 3:49teams saying hey, we should you this
137. 3:50thing.
138. 3:50>> Yes. Um, but
139. 3:53if you're already flipped, because
140. 3:55typically smaller businesses
141. 3:57start here
142. 3:58and then all of a sudden they do a
143. 4:00couple enterprise accounts, they're
144. 4:00like, "Holy this one of these is
145. 4:03worth 50 of these. This is awesome, but
146. 4:04how do I do more of that?" If you've
147. 4:06already made this transition, you're
148. 4:07already on the right path. And so I'd
149. 4:09just do more I would do more better on
150. 4:10that side as my main focus.
151. 4:13>> Got you. Understood. So, no need to pull
152. 4:15the plug on either, but just direct all
153. 4:16>> Yeah. Put all of your focus there.
154. 4:18>> Yep.
155. 4:19>> Get your CAC metrics. I mean, I still
156. 4:22would want to know,
157. 4:23but seeing the difference that I'm
158. 4:24looking at here, I'm going to bet it's
159. 4:26probably not that complex of a sale to
160. 4:29hit that that number. And so it's like
161. 4:31maybe CAC is three times higher, but LTV
162. 4:33is 20 times higher.
163. 4:34>> Yeah.
164. 4:34>> That's a better game.
165. 4:36>> And the the retention has been much more
166. 4:38sticky on the team side.
167. 4:39>> That's what builds a compounding
168. 4:40business. Yeah. And that's I mean, it's
169. 4:42a much better game to play.
170. 4:43>> Yep. Perfect. Thank you.
171. 4:44>> Yeah, you bet. If you like this video
172. 4:46and you're a business owner who wants to
173. 4:47break through your current revenue
174. 4:47ceiling, I distilled every lesson from
175. 4:49scaling 10 businesses past 10 million
176. 4:51and three businesses past 100 million
177. 4:53into a completely free scaling roadmap
178. 4:55that I've used to go from zero to one,
179. 4:56zero to 10, and zero to 100 plus. And so
180. 4:59you can click here and you can check it
181. 5:00out. Again, absolutely free. And since
182. 5:02you're a business owner, I appreciate
183. 5:03you and enjoy.