No Sales Team for 12 Years. Now He Does $48M a Year.

0:00All right. >> This is Kaden. >> What's up, Kaden? >> Is this Alex? >> [cough] >> It is indeed. Hit me. What's uh you doing what? 48 million in revenue? That's what I saw in the in the message. >> Yes, sir. So, we're pacing for 48 million this year. >> Badass, man. >> about Yes, sir. We're up 60% year-over-year. >> Congrats. What do you sell? >> Uh shoot. Creative Home Engineering. So, Murphy doors, Murphy beds, hideaway safes.

0:25>> Oh, cool. Yeah. Money printing. Um average ticket? >> The average ticket, so we just added a sales team about 15 15 months ago. We were doing about $2,200 as their average. We're now doing 2,800 with a sales team. So, average between the two, we're looking about 2,600. >> Really? So, you're doing a ton of volume. >> Yeah, about 20 21,000 uh orders per year.

0:51>> Badass. Okay, so is this uh what's what's acquisition door-to-door or is it uh phone sales? >> So, uh ironically, for the first 12 years, we didn't have a sales team. It was customer service. And but it was direct e-commerce. So, we've we've been very lucky. >> Wow. Okay. So, you would sell these So, wait. Hold on. So, you were selling these units and then just shipping them straight out?

1:17>> Correct. Yep. >> Got it. Okay. Okay, what percentage is e-commerce versus uh sales team? >> So, sales team's done 12 million this year. We're at 22 million as of right now. Um and then we've got other channels that were about We're We're just about 48% from the sales team. Uh direct-to-consumer. >> And what When you say direct-to-consumer, are they just dial like smiling and dialing? Are you doing lead gen? Like are you Like what's

1:46>> No, it's just through marketing channels. They're They're checking out direct through our website. So, they're they're landing on our landing page. Uh they're following us on Instagram. And over time, they're they're checking out on their own. So, 48% uh 52% is is doing that. >> Uh-huh. >> We've got about 4% through Home Depot, Amazon, and other other channels.

2:10>> Um so so my my question, my problem, my my burning problem that uh that I need solved is, you know, we've we've partnered with Grant Cardone. We're we're trying to get in with you as well and and uh >> You buy some books? >> this thing. We we bought 215 books. So, yes, sir. >> Well, I appreciate that. All right. Well, and I thank you for the other 200 entrepreneurs who are going to get books. So, thank you from them, too. All right. So, uh what's the So, you have a burning question. You said you wanted to partner.

2:42Uh what's the Like, what's holding you back right now? >> I honestly, nothing. Nothing's holding us back right now. So, so we haven't been out to see uh we've we've been with the Cardone team for for a couple of years now. They've they've done an awesome job for us. We love them. >> obviously. Yeah, I think they're doing great. >> We we um we we think that what we're doing organically is working great and we we want to see it through.

3:09>> Okay. >> Uh so, by 2027, we've got a plan to reach 100 million. >> Awesome. >> And so, my question is, you know, with with your expertise, what what channel do you see, you know, I think we've got so much fire burning under us and so much ability. You know, we haven't tapped into door-to-door. We I I just started uh a channel where we're actually meeting with the developers, the designers, the contractors.

3:35You know, so I think that channel, the lifetime value of a contractor is so much greater than just a direct consumer. >> Yeah. >> So, so I don't know if we just need to blast that channel, you know, currently currently the majority of our builder leads are coming from We do one event per year. It's called the International Builder Show. >> Yeah. >> We go out to Vegas. Uh I will spend about a million dollars on a booth.

4:00We always get, you know, show the booth of the year. >> So on and so forth. We're able to acquire about 6,000 leads, builders, designers, contractors. >> Amazing. >> And and so within the past 2 months, I'm really trying to build that team out. I So far it's working great. It's 1/3 of our sales team's revenue. So I I'm I'm you know, without proof of concept, I'm just trying to understand if

4:28>> So >> this is the route that I need to put all our resources in >> or if, you know, you're seeing something with your >> No. So let's Let me Let me just cut you off. So right now the thing that I'd be most afraid of if I were you is splitting my attention. >> Okay. >> Because I like to ask the question like what's stopping you from doing 10 times more of the thing that's already working? What are your What are your margins right now?

4:54>> Uh 48%. >> Dude, you I mean, come on. Okay. So you got great margins, growing fast. You've got the e-commerce channel, self-serve that's working, that's uh 52% or 48%? Which one was it? 40 52, right? >> Uh the e-commerce is 52. >> Right. You got 52 and then you got 4% from other and then you got I guess the rest is sales team, right? >> Correct. >> Okay. And then sales team are working what channel?

5:20>> Sales team, they are so they're mainly working all the lead leads that are coming through all of our our >> from e-commerce. So they're just working Yeah, they're just working the leads from all abandoned carts and all that stuff. >> carts. Yeah, exactly. >> Okay. So this is basically So the sales team add-on is kind of a CRO thing. So it's basically like So the easiest way to think about it is um All right. I'm going to I'm going to draw and maybe you'll see this video. I don't know if you're watching this live or not, but for my people, can you give me an overhead cam?

5:48So, if we have a triangle, and let's say that this represents the marketplace. If you are currently monetizing the top of that triangle, okay? That's let's say with this is this is your normal e-commerce, whatever, right? When you add a sales team, what happens is you take this line of monetization, and then you just pull it down, and then you convert a higher percentage of the people that are in this triangle, right?

6:16Okay. Now, the way to grow this is like you you can't you're like if you keep adding more sales people, eventually you will run out of leads to call, correct? >> Absolutely. >> Right. And so that was a one-time lever. A good lever, don't get me wrong, and one that will increase uh AOV, it will really more EPCs than AOV, but like increase increase um earnings per click so that you can spend more on advertising, et cetera. >> Mhm. >> Okay.

6:42Rock and roll. And um what we want to do is we want to expand this triangle as the primary thing. That's what I'd be thinking of. So, your current way of getting the customers in, are you running any ads at all? >> Yes. >> Okay. >> Plenty. >> Yeah, so my thought process would be, okay, now that we have enhanced our earnings per click, we can now reach significantly more uh we you basically you can buy way more media, and I already have the infrastructure to do that, and I already have the sales team. And so then the business just become Can you hear me?

7:17>> Yeah, but I can hear you. >> Yeah. So, the business just becomes I'm going to spend more money uh on the advertising, and by doing that, that will then feed the sales team, which I can then bolster up. And so it just becomes this back and forth ping-pong between get more leads for e-commerce, hire more sales people, get more leads for e-commerce, get more sales people. And that to me is a simpler setup. For for me to say, "Hey, let's also do this other thing." Unless you have a a star who can actually run it without you doing it.

7:47>> Got you. >> Then I would rather you stick with the thing and double down on what is working most. Cuz like I'll say this differently. If you can double the business, right? With doing one thing, I think it I would rather do that than double it doing four. >> Got it. >> So then let's just try and find the one thing. And then put all of our business on that. And right now you have a machine that's doing 48% margins, growing 60% a year. I'm not like let's just add distraction, cuz most businesses die from indigestion, not starvation. They die from doing too much, not too little.

8:21>> Absolutely. >> And rather I'll say too many rather than too much. Too much you can pretty much never do. Too many you absolutely can do. >> Got it. >> All right, that's what That would be without knowing anything about the team, with zero context from a 8 and 1/2 minute call, that's how I would see it. I would see your bigger business you you know this. You will know your business better than I can right now. But that is the framework that I'd be using to approach it.

8:48The sales team was a one-time pull, increased my made more money, probably dramatically increased margins. All that's good stuff. But in order to really expand the business, because to me the business didn't really expand, you just better monetize. There's nothing wrong with that. >> Absolutely. >> Right. But now it's like you have top of funnel issues. So we either have to like either you need to spend more on the existing channel, see how can I get to 200 or 50 million a year just by 5Xing my front end?

9:14Uh or like if I really feel like I'd capped that, which you're I don't think you're even close. Um then I would say okay, let's see if I can start another channel. But I'm going to always try and do more before I try and do new. >> Got it. >> Rock and roll? >> Yes, sir. I appreciate you, Alex. >> Appreciate you. Thank you for buying books. >> Absolutely. >> All right, see you then. If you like this video and you're a business owner who wants to break through your current revenue ceiling, I distilled every lesson from scaling 10 businesses past 10 million and three businesses past 100 million into a completely free scaling roadmap that I've used to go from zero to one, zero to 10, and zero to 100 plus. And so you can click here and you can check it out. Again, absolutely free. And since you're a business owner, I appreciate you and enjoy.