One Channel Away From Zero

0:00Um, yeah, so I've got a business. I was working with a guy who does e-comm management for Amazon stores, Walmart stores. So, I was leading up his operations. Him and I started a side business um doing a tax function and then also we built the software that runs his entire business. But, it's like a separate like a little shark that follows the big shark. So, that business is going relatively well. Um, we'll do about 1.1, 1.2 million this year. And it's gotten to the point where we have these clients that come. I mean, any anybody who signs up for his other business has to sign up for our business. So, I don't need to advertise or market. And I'm trying to figure out what's next because right now we have this one channel partner. Anything happen to that business, Walmart, Amazon change the game, we could get shut down pretty quick. So, we're trying to figure out do we focus on increasing revenue with our existing clients? We can that's one strategy we could take.

0:56But, that limits us with the one channel partner or do we start figuring out how do we take all of our excess capital and either partner with other people, um create different apps, things we could sell through the Amazon seller marketplace as a whole. We're approved app developers now for Amazon as well. So, there's a lot of different directions we can go and I'm stuck between increasing revenue with our existing clients and getting up a little more or figuring out other streams of revenue in case anything happens to that first one.

1:26>> I think I would I'd do neither of those. Um, I would probably yeah. Um, I mean, my favorite strategy in the world is to do more of what's working, uh which would be you have one channel partner and so I would be attacking more channel partners. I wouldn't be adding more products. And if you already are are you good good profit margins within the business right now? >> Yeah, about 68%. >> Okay, yeah. So, margins are good. So, yeah, I would I would be getting 10 more of the big sharks as the business model. So, that means that you just like fundamentally you have to crack an channel to get customers and so you already know what the partnership model looks like when it's right. Now, I'm guessing that guy owns half of this business.

2:04>> Mhm. >> Right. And so it's like how do I make it compelling for everyone else? So, you'll probably eat into your margins, but maybe just say I'll give you half of the revenue uh as an affiliate or 40% of the revenue that your customers generate and you don't have to do anything. You just make the intro. >> Sure. That was the thought as well. So. >> Yeah. I would do in terms of like So, I think about these in bets of like what's the what's the the likelihood of success? And so um building new products is a lot of zero to one, which is a lot of net new.

2:30You don't know if you have product market fit. Like you have product market fit, which is tough. And you have that, which is great. >> Mhm. >> Um and then different acquisition channels it's like well you you already know what partners is like. And so it's like if I if I want to take the next natural bet it's like how do I change as few variables as possible and take the bet that'll have the most upside. So, you getting 10 of these sharks with an affiliate model that makes sense makes sense to me. And maybe we do a little phantom pool of like 10% that all of them get a tiny share of that's proportional to the amount of customers they send you so that if you exit in the future they get a slice.

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