Why More Products Won't Solve This Agency's Constraint — Transcript

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1. 0:00We sell memberships to Tik Tok shop
2. 0:01creators where we help them with
3. 0:03education, we match make them with
4. 0:05brands and we also give them a community
5. 0:06where they connect to other creators.
6. 0:08We are currently in the first year we
7. 0:10did 3.6 million in revenue and we want
8. 0:12to go
9. 0:13>> year?
10. 0:13>> First year, yes. And we want to go to
11. 0:15yeah, for the next 2-3 years to 30-40
12. 0:18million and then after 200 million like
13. 0:20the biggest in the industry.
14. 0:21>> Okay.
15. 0:22>> Currently what is stopping us is nothing
16. 0:24really like we are growing quick is just
17. 0:26more on business models focus where
18. 0:28should we put the focus on? We are the
19. 0:30first mover we are currently the biggest
20. 0:32in the US
21. 0:33and
22. 0:34>> It's sorry?
23. 0:35>> Really?
24. 0:36>> Yes, on creator creator community on Tik
25. 0:38Tok shop, yes.
26. 0:39>> Okay.
27. 0:40>> And
28. 0:41yeah, Tik Tok is growing quickly other
29. 0:43>> What's the membership price?
30. 0:44>> A 50 one of $50 and one of $200.
31. 0:46>> All right, are you getting off of ads or
32. 0:48you getting off of word of mouth or
33. 0:49what?
34. 0:49>> Affiliate.
35. 0:50>> Okay. So who are the affiliates?
36. 0:52>> Our creators they are doing Tik Tok
37. 0:54shops so they know how to affiliate for
38. 0:55products so they also affiliate for our
39. 0:57community. They coach and they also
40. 0:58coach in the community.
41. 0:59>> through Tik Tok shop?
42. 1:01>> Through Tik Tok.
43. 1:02>> No, no, I know but like I'm just this
44. 1:03may be a bit much.
45. 1:04>> No, that's not possible because Tik Tok
46. 1:05is only physical products for now future
47. 1:07there will be other products as well.
48. 1:08>> Okay, so you just run it through like
49. 1:09what Shopify or
50. 1:10>> No, no, just oh the the match making
51. 1:13platform
52. 1:13>> Uh whoop whoop.
53. 1:14>> Okay, got it.
54. 1:15>> That's cool, sorry.
55. 1:16>> All right.
56. 1:16>> No, but yeah, it's it's
57. 1:18>> come to school eventually when you got a
58. 1:19business.
59. 1:20>> no really is we we have to think about
60. 1:22structure.
61. 1:23>> [laughter]
62. 1:23>> So yeah, we are doing a lot. We do the
63. 1:26match making between the brands and
64. 1:27creators on the no code platform
65. 1:28currently. We are they are building a
66. 1:30full scale platform as well. That
67. 1:32platform can scale easier but the
68. 1:34memberships is also very interesting
69. 1:35model. Currently it's about 50/50 in
70. 1:37revenue from membership fees and from
71. 1:39connecting the brands with the creators
72. 1:41and giving them the transitional
73. 1:42transaction fee.
74. 1:43>> Yeah.
75. 1:44>> So yeah, it's more where do we scale,
76. 1:46where should we focus on?
77. 1:47We are also thinking about raising
78. 1:48investment potentially for the platform
79. 1:50itself so we are kind of okay, what is
80. 1:52the fastest way to grow to the 200
81. 1:54million?
82. 1:54>> to raise capital?
83. 1:57Why do you need to raise capital?
84. 1:59>> That's from the building the platform
85. 2:00like
86. 2:00>> Yeah, but even then like
87. 2:02you're making money, you're growing.
88. 2:04Like
89. 2:05coding is
90. 2:07like with all the AI stuff that's out
91. 2:09now like you don't need you need like
92. 2:10two really good coders not like a team
93. 2:12of 20.
94. 2:13>> Yeah. Yeah, it's
95. 2:15if you ship fast it's uh
96. 2:17so you need quite a few but then again
97. 2:18we need to we we are looking at the
98. 2:19distribution
99. 2:20>> margins now?
100. 2:21>> Margins depends on the if you
101. 2:23no not look at the growth stuff so
102. 2:25hiring in the coders and everything that
103. 2:26are not really impactful at the moment
104. 2:28it's decent margins like 50-60% if you
105. 2:30take it off it's now the last few months
106. 2:32we're really investing heavily so that's
107. 2:33not like crazy profit margins we're
108. 2:35investing kind of all of it.
109. 2:36>> Yeah, I get it. Yeah.
110. 2:37So I wouldn't raise capital because you
111. 2:40have sufficient cash flow now
112. 2:43to fund the growth.
113. 2:44That's fine.
114. 2:45>> Okay.
115. 2:46>> So I don't see that as an issue.
116. 2:47>> And the first mover advantage that we
117. 2:49have
118. 2:50because we have it and TikTok is growing
119. 2:52very fast on the market global.
120. 2:54>> Yeah.
121. 2:55But the thing is is that to get a huge
122. 2:57percentage of the market share it
123. 2:59doesn't require money.
124. 3:02If it did a lot of networks would win.
125. 3:04>> And the community part is our biggest
126. 3:06USP.
127. 3:07>> It requires skill.
128. 3:10>> Yeah.
129. 3:11But at this hiring the right people
130. 3:13that's where we require capital.
131. 3:14>> But I'm saying like
132. 3:16if you want to grow as fast as you can
133. 3:18then let's take this to the natural
134. 3:19extreme. What would be the best thing
135. 3:20that could possibly happen in order for
136. 3:22you to do that?
137. 3:24>> Have all
138. 3:25TikTok shop creators on our platform
139. 3:27using our stuff and connect through our
140. 3:29brand deals.
141. 3:30>> Well, that's all of them but what
142. 3:31happened before that?
143. 3:34>> More creators.
144. 3:35>> Okay. Do you think there would be like
145. 3:36if there was a big creator who got on
146. 3:38and made a big deal about it? That would
147. 3:40>> That would help you for sure.
148. 3:42>> [clears throat]
149. 3:42>> Yeah.
150. 3:43>> So maybe you have like three to five
151. 3:45people who are big names and big faces
152. 3:47that can build your brand and drive
153. 3:48audience to the platform. They also have
154. 3:50their own audiences.
155. 3:51>> That's what we have right now yeah. So,
156. 3:53we have the coaches in our community
157. 3:54like one is like 150k followers on
158. 3:56TikTok just from teaching TikTok shop to
159. 3:58our creators.
160. 3:58>> So, it's like how do we do way more of
161. 4:00that?
162. 4:01>> So, not yeah, focusing purely on that.
163. 4:04>> Yeah, cuz that's the biggest growth
164. 4:05lever that you have.
165. 4:07It doesn't require a huge amount of
166. 4:09capital to go get those people.
167. 4:11>> No, that's true. It's more relationship
168. 4:12building. The hard thing is it doesn't
169. 4:13operate well.
170. 4:14>> thing is is money makes you lazy.
171. 4:16Because you just think when you when you
172. 4:18have more money, you think how can I
173. 4:19solve this with money? But there's a lot
174. 4:20of problems that don't get solved with
175. 4:21money and money actually impairs your
176. 4:23thinking ability, which is why I'm not
177. 4:25pro that for you right now.
178. 4:26>> Okay.
179. 4:26>> So, it's like you have good cash flow.
180. 4:28You like by all means eat up all your
181. 4:29profit if you want and then put it
182. 4:31towards dev. I see that is fine. It's
183. 4:33tax efficient, whatever.
184. 4:34>> Yeah.
185. 4:34>> Um but I would be bringing you've got
186. 4:38one guy. It's like well, what would it
187. 4:39take for us to get 100?
188. 4:41>> Yeah.
189. 4:41>> Okay, if you had 100 of that guy, how
190. 4:43much bigger would the business be?
191. 4:45>> Yeah, way bigger, of course, yeah.
192. 4:46>> Right. So, then what stops you from
193. 4:47doing that?
194. 4:49>> Great working creators is
195. 4:51work.
196. 4:51>> like working with influencers. They feel
197. 4:54>> It's hard sometimes to really get them
198. 4:56close to you, to really depend on them.
199. 4:57That's our biggest thing. That's our
200. 4:58downfall.
201. 4:58>> shouldn't do.
202. 4:59>> No, no, of course, but it's the
203. 5:00it's the dependency on them which makes
204. 5:03growth
205. 5:04>> Dude, new world.
206. 5:05Influencers are everything.
207. 5:06>> That's true. Yeah, yeah. It's also our
208. 5:08biggest USP right now.
209. 5:09>> Colbert. They're going to cancel Fallon.
210. 5:10Like all the all the mainstream stuff is
211. 5:12dead and dying.
212. 5:13>> Yeah.
213. 5:14>> So, like and direct response stuff is
214. 5:16also like old school pure direct
215. 5:18response is is tanking. People are
216. 5:20having a really hard time converting. Um
217. 5:23and it's because you need brand.
218. 5:24Because like all the attention is on
219. 5:26creators. And so, all the trust is with
220. 5:28creators.
221. 5:29>> Yeah, that's also how we've been growing
222. 5:30from the first
223. 5:31>> Right. So, you're you you get it for
224. 5:33your opportunity, you're just not using
225. 5:34it for you.
226. 5:36>> Yeah, yeah, yeah.
227. 5:37>> Right.
228. 5:38>> Yeah.
229. 5:39>> So, again, said differently from what
230. 5:41when I started, if a year from now only
231. 5:43one thing was true and that would 10x
232. 5:44the company,
233. 5:46what is that worth to solve?
234. 5:48>> That is true. And then I'm focusing on
235. 5:50the back end like having the two
236. 5:51business models I've been talking a lot
237. 5:52with all the
238. 5:53>> I'm not I'm not I'm not actually as
239. 5:56bothered by that
240. 5:57>> Okay.
241. 5:57>> as I normally would be because the price
242. 6:00is so cheap it's almost just like a
243. 6:02it's just like a cost of entry. You know
244. 6:04what I mean? It's almost like so like
245. 6:05for example Shopify,
246. 6:07um you know, they become a payments
247. 6:09company over time.
248. 6:10>> Yeah.
249. 6:10>> But they had, you know, subscription
250. 6:11revenue like
251. 6:13it's okay to have a blended model.
252. 6:16I'm not I like
253. 6:17I I'd have to look more like we'd have
254. 6:19to look more under the hood to
255. 6:20understand the like delivery constraints
256. 6:21which is beyond the scope of right now,
257. 6:22but
258. 6:23um
259. 6:25yeah, I I don't I don't want to answer
260. 6:26that like I don't know yet on that one.
261. 6:28>> Okay.
262. 6:29>> Um
263. 6:31I don't know yet on that one. In terms
264. 6:32of growing, I would find
265. 6:35the highest leverage influencers
266. 6:38and basically remove everything in my
267. 6:39path that's not that.
268. 6:41>> Okay.
269. 6:42And then pricing models is not the
270. 6:44that's another thing we think about so
271. 6:45this is my greatest crazy money.
272. 6:47>> improvement. I just can't say it right
273. 6:48now until I like till we look
274. 6:49everything. But yeah, that's the But
275. 6:51yeah.
276. 6:53>> Interesting.
277. 6:54>> Cool.
278. 6:54>> Yes, thank you.
279. 6:55>> Rock and roll. Appreciate you.
280. 7:00Does that thinking process help of like
281. 7:03cool, there's a hundred things we could
282. 7:04do, but if we just like only had one of
283. 7:05these things be true in a year, would
284. 7:07like if we just made that thing true,
285. 7:09wouldn't all of our goals get
286. 7:10accomplished? And if we did that,
287. 7:12doesn't that mean that all of our goals
288. 7:14would be accomplished? So why are we
289. 7:15doing anything but that?
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