What Happens When You Can't Guarantee the Outcome?

0:00Hi, my my name is Varun. I sell done for you job search services to senior IT professionals and we are doing 260k in revenue. I would like to love to be at a 1 million dollar revenue marker by the end of this year and what the biggest problem right now what we have is a very low LTV to CAC ratio. It's like 3 to 1. >> Okay. >> And the other big problem is we have because we can't guarantee the outcome because of the market, we are

0:26>> What is the outcome? >> The outcome is landing them a job. >> Okay, so you're getting people jobs in IT? >> Yeah. >> Okay, got it. >> And so we tell them like hey, we'll work with you until we land you a job. >> In a different market? >> In the same market, same industry, same niche. >> Okay, so but like they're local like in so you're not going cross country placements. >> If they want to if they want to relocate, we do that but whichever whatever they specify the job like hey, I want to land this kind of role and we assess like we can land you realistically.

0:56We find the hiring managers, we build their resume, we build their LinkedIn profiles, all of that. >> Mhm. >> And then market them better. Sometimes some people are more aspirational so we can't necessarily land the job >> Sure. >> certainty. So and that's why they create a ballooning problem in my business where like we have customers >> What do you charge? >> Uh 6k. >> Okay, and CAC 2k? >> Yeah, yeah, 1800 currently. We just started testing running ads.

1:24>> Interesting. Can you have a success fee? >> Uh >> Success fee? >> No. >> You can't or you won't? >> Oh, no, I don't do not. >> Would you like to? >> Love to. >> Okay, maybe we do that on top. >> I I wasn't sure how much and how to price it. >> I think usually like whatever you can say without cracking a smile on the phone is a good place to start. Um >> [laughter] >> Um No, I mean I I mean that I mean that relatively genuinely. Um Like you just keep going up. So I mean it's just talk to five, make the offer, see how it does, and just I just keep going up until the market says no.

2:01>> I see. Got it. >> I mean, it's the strongest lever on on on profit. Price is the strongest lever on profit. I do think CAC seems a little bit higher for what you're what you're talking about. I would expect CAC to be about a thousand for an offer like that for like a job opportunity. Um what's How are you getting customers? >> Uh LinkedIn uh primarily it's a 70-80% uh LinkedIn uh cold outreach and uh organic. >> Mhm. >> And then few customers here and there from ads cuz we are just few months ago we started trying our hand at that.

2:29>> I don't think you should try ads. I think you should keep doing outbound. >> Outbound? >> And just double down on that. >> The outbound we are limited by 100 LinkedIn requests. >> Mhm. >> But And >> There's ways around that. >> I see. >> Yeah, there's ways around that and there's also other platforms. And so, just for anybody, if you're if you're thinking about like let's say you have one method, so like paid ads is a method, affiliates is a method, um you know, organic content is a method.

2:52Those are all methods. Uh changing uh methods is the hardest thing to do. Uh right above that is is changing uh platforms. So, if you're good at outbound, it'll be different on Instagram, but more similar than running ads. Does that make sense? >> Can we add on to that? So, we are already we we have got the outbound dialed in very well. Uh I just wanted to run ads because like for the past one year we have been doing exactly that and we have seen zero increment with the outbound, right?

3:17>> Yeah, I I think that So, there is a the There was a guy here last time who um uh You can you can absolutely get more get more DMs. I'll just say that. Like you can for sure increase your number of DMs from 100 to 500 or 1,000. There's many massive companies that use outbound on LinkedIn as their primary strategy for for for getting customers. So, I think one is you can do that, but if we were to just change your economics of the offer and just include a um uh a success fee, then I think that would be a great first start. Uh which probably like the first month uh would probably be a good starting point price-wise.

3:55>> Thank you. >> Yeah, no worries. If you like this video and you're 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 business owner, appreciate you and enjoy.