Auf welches Business soll ich mich voll konzentrieren?

0:00I sell TikTok shop agency services to e-com brands. We do 2.5 million in revenue. I'd like to be at 12. And what's stopping me is a woman in the red dress who's with me today here. She's There she is. >> [laughter] >> Stunning. So, I started at the same time hedging my bets. I came out of a very sour partnership and both have grown really nicely in since since last year.

0:26Um I'm I'm very good at growing the business like kind of both sides. Theo is There's a supplements brand just for a bit of background. Supplements brand growing like crazy on TikTok shop. Obviously, the agency kind of services that they grow with, which is great. And Theo's great with content and product knowledge, right? I can't do both cuz obviously now we've hit a point with the agency service where we're bringing on like a lower ticket.

0:52And I also kind of want to and you're probably going to I know what you're going to say, but on the higher ticket or like done-for-you service, you know, our our kind of main service. >> to for the agency? Um e-com brands that What size? It's a tough one because like the top two brands we have are completely different avatars. And hence is why the reason we also wanted to bring in a lower-level service because like we don't know what they're going to be like till we get them on the other side.

1:18Hence why we can kind of like incubate them through a lower-level service and cherry-pick, hopefully. Um E-com brands have a good appetite for risk and throw money at it till it works. So, the question is The question is um I want to merge So, I know typically it's like one or the other. I kind of want to merge it because we can also invest in these brands that look good at the a third business. >> They look good at >> We could solve our two business problem by adding another one and investing on it.

1:46Yeah, yeah. Well, that's that's the thing like we have opportunities daily coming to me like saying maybe you know, they've got all this brand jumping and I'm like we could smash it. I just need like that extra little department to clean up the brand and then it becomes a good client for the agency. Yeah. And then yeah, that's the two places making most money. One with a big brand, so a whale, and one with a brand we own, which is also the next whale, which is why it's like it's [ __ ] 50/50. I don't know which way to go. I'll tell you this. First off, there's there's no right answer.

2:13It's going to be what you want to do. Um second thing though is that I I like to I like to think about things from like what's the end state going to look like and then kind of reverse it into the present. And so, the end state of your TikTok agency, there's going to be two There's two issues with your existing model that will decrease the likelihood that you have a very big agency. Number one is that you service small customers. Small customers are inherently volatile. Their volatility will relate back to your volatility as a business will make your business unsellable or not viable. And definitely not very fun to run.

2:43Problem number one. Problem number two is that TikTok shop for now is a hot arbitrage opportunity and will not be here forever. And so, in 3 years, the likelihood that it has the same, you know, returns is low. And so, you basically have again an arbitrage opportunity that exists. So, there's two kind of big long-term issues there. You're selling to the wrong people and you're you're selling to short-term people a short-term opportunity.

3:09So, it doesn't build a long-term business. If what I do like is that you have this good infrastructure for marketing. I don't think the idea of the whole merging thing is as I think there's a tweak on it that would make it better. So, if I were you, I would take my existing very large infrastructure on the agency side. Cut all my clients and then take all of that marketing horsepower and put it towards Theo.

3:36And then own a big-ass brand. You're good, bro. I can pick up my own water bottle. I see. What stops you from doing that? It's volatile. It's TikTok shop only, that brand. We're slow on meta, etc. We're getting there. We've we've got an agency on board. We're going for it. So, that's that's the only reason I'd say like mhm not sure. Theo's volatile? No.

4:02No, no. Theo's actually good. >> He gives moody vibes. Theo's great. He's cool. Careful. [snorts] No, no, no. I'm good vibes. No, no, it's good. I I and I love the agency side and I think I love it, but also I do see huge opportunity in the info product model with it because it doesn't exist in the UK and a lot of people would buy it. Well, yeah. But what do you want What do you want to have happen? So, I would like that to go I would like the info product

4:28>> you want to get to 12 million. Mhm. You did this to get to 12 million. Coaching business gets to 12 million. You can sell socks and get to 12 million. So, what do you want to do? Okay. Would you prefer to be an agency owner? Yeah, yeah, I would. What I would like to do is bring in a big hitter to make sure that that that the growth and stability of that side can go so Theo can just keep marketing the [ __ ] out of it. That'd be great. All right. >> And then agency side, I would love the the lower ticket like 3K learn-it-all, etc. and buy pieces of the agency model as and when you kind of need to. It's much more scalable for us and rather than doing like everything, sell that to masses and then cherry-pick like the ideal clients out of that when we see them performing.

5:08In an ideal world, of course. Yeah, an ideal world. Where great people fall out of the sky and immediately know what to do and just run everything for you for a fraction of the compensation. So, you're 50/50 on this brand? Yeah. Okay. It would have been so elegant if you were like, "You know what? I'm just going to go all in on this Theo thing." It would have been so nice.

5:33Um but you're like, "No, I don't want to be an agency owner." It's It's It's really just It's It's limited by your ambition. So, if you want to do 12 million dollars a year, literally any of those things will be 12 million, which actually doesn't serve as a really good filter. If you were like, "I want to build a hundred million dollar thing," then I would say it's going to either I mean, you could your existing [clears throat] agency model wouldn't get you there.

5:56You'd have to service higher-end customers. You find like Hexclad and, you know, whatever, you know, Fage. That's the yogurt brand. Whatever, I'm just naming consumer brands. And you'd find big brands and then you probably wouldn't sell TikTok shop for for yogurt. But you get the idea. Right? You would You'd find those big brands and be like, "Okay, we're going to build this whole thing out for you. We'll do some sort of rev share on it." And I think rather than trying to invest in the brands, just do a revenue share. It'll be much easier. It'll be much cleaner. And most of these brands will never sell anyway. So, you might as well just like get the cash cuz that's the only thing they're really going to produce. Makes sense.

6:28Yeah, that's that's the model now we That's our main done-for-you service on the agency side is like we rev share and fixed cost. Um but it's >> But you sell to small businesses. Yeah. You sell to bigger businesses. >> a mixture. Yeah. Stop selling to small businesses and you'll build a bigger business. Okay. So, would it be Would it be reasonable to say like, "Okay, so main service that takes a lot of the manpower like big businesses only, price raise high ticket." And then the the info product a lot of people might be interested in. We can just sell that and then Yeah, or you could just not sell it.

6:57You could just You could just live your life and just service high-end customers and make more money. Cool. You Like it So, the last year was the first year that I noticed in my life that I didn't have FOMO. It was weird. It's been a a lot of years that I've had FOMO where I'd see somebody doing something really cool and I'm like, "Man, I really want to do that. I should stop what I'm doing and I should do that." Um I don't I don't know what happened where FOMO disappeared for me. Um but I can tell you that it is the worst It is the worst um drive as an entrepreneur. It's really fear. It's the driver. It's the first letter.

7:31And so, it's this fear of missing out or like And so, there were you There will always be more opportunities than you can possibly do. It's just the nature of life. Life's short and you like And the more skilled you are, the more amazing opportunities you have to say no to in order to do one opportunity all the way. Cuz if you just do one thing really well for the rest of your life, it'll get really big. But if you do two things for the rest of your life, you won't either do either of them really well and neither of them will get big.

7:58And so, it's like you have to just learn to say no. And so, you're like, "But there's also this other It's like, you know what? I'm also thinking like all these small guys, they also need a little software and we could I could put this together It's like, dude, stop. Like why not sell them newspapers? Right? Want some orange juice. They drink orange juice. I mean, you know, like what are we doing? Right? So, like there's always something else you can sell, especially if you know how to sell and promote. Like you have to like this is a discipline thing. Like you have to learn how to say no. And you have to think about what's the most viable version of this business.

8:24The most viable version of this business is going to be big brands who you have big rev shares with and they're you're just their TikTok guy. They don't even think about it. You send them a check every month. They're happy. Those are the right customers. Everybody who's like, "Hey, do you think you can make it big for me?" Wrong avatar. They're going to churn out and and you're going to be their savior, which also means that you're their villain the moment it doesn't work. It makes sense. Right? And there's volatility and you have an arbitrage opportunity. Does not make it a very stable business.

8:48So, go big. Go big companies. Make your rates appropriate. Change the the marketing, the brand Like I'm saying, you wanted to have a big agency. That's what a big agency looks like. >> Yeah, yeah. If you're like, "You know what? I I have this skill set of knowing how to do these things," then you can build a big brand. Mhm. And you're like, "Fuck the agency. I'm really good at this." Just choose one, yeah. Okay. But you But like you can also ignore my advice entirely and make a few hundred thousand dollars a month and like and feel cool.

9:16Makes sense. Appreciate it. Just being real. No, no. Yeah, thank you. Appreciate it. So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. It's a my team spends two days with you to identify the thing that's holding your business back. And so, if that sounds interesting, click book a call and if you're a fit, we'd love to potentially see you out here in Vegas.