If profit were as easy to screenshot as revenue, people would make more of it.

0:00I have a subscription based >> Boat rental? >> Yes, yes, I do. Currently doing 2 million. >> With 500,000 in profit? >> 600, mhm. >> You have 2 million in debt, right? >> Yes, cuz it's pretty capital intensive to have 50 boats. >> So, basically after taxes it's going to take you like 6 years, 7 years to pay the whole thing off assuming you don't spend any money, which would suck, right? >> Yes. >> I don't think this is a bad business. Fundamentally you have very high margins on each incremental membership, correct?

0:27>> Yes, yes. >> So, you're kind of at this point where like you've covered all your costs and so each additional membership makes you a lot more money. So, what stops you from selling 10 times the memberships? What are you doing to grow? >> We spend about 6,000 a month in paid ads. >> What's ROAS on this? >> Well, according to the marketing agency that I use, they're very, very good. >> According to them they're like, "It's acceptable." >> Yes, yes. >> You just spend all your money here.

0:51>> Yes, I only spend $11 per lead and that's a fabulous number in the industry. >> What percentage are you closing of leads? >> We're at 4% lead to close. >> So, at two whatever, 266 is cost of acquisition right now, not including sales commissions. If that's what it cost you to get a customer, what's the membership? 500 a month? >> It's a $5,000 initiation fee and then $500 a month. We sell 5-year contracts. >> I love this. >> So, that's why I was thinking I do more of it.

1:17>> Yeah, do more sounds great. I love this for us. I love this for us. >> [laughter] >> The thing is is you have a business where this happens a ton by the way. You have a certain amount of cost that you have that's fixed cost in the business and then you spend enough marketing to get above the fixed cost and then make some profit and then you like exhale, you're like, "Oh, thank god I'm not losing money." But it's like you're willing to work so hard to make everyone else money. Your landlord, the licenser, the your the employees, like you're paying all their mortgages, but then like you're just forgetting to like pay you.

1:47>> Mhm. >> And so it's like let's go ham on that side. Like when it gets easy is when you go hard. >> Thank you.