Hohe Kündigungsrate stoppt Wachstum: Agentur bei 17 Prozent Churn

0:00Unternehmer/Gast Not much. Hey, first and foremost, I just want to say Vantage has been an absolute game-changer. The AI The AI is uh to put it in Justin's words, disgusting. It's given us so much clarity on our business and just like the last guy said, like the community is just such high-caliber people. It's made such a big difference. So, thank you. >> I appreciate it. >> Um Here into my situation. So, I'm like the seventh guy to say the same, but I'm 24.

0:26My wife and I, we just learned we have to pay for IVF treatments. >> Oh, sure. >> expensive. >> Sorry. >> Uh and my 23-year-old business partner and his wife are pregnant as well. >> It's like a baby's in the air. >> Yes. Yes. We basically have a 9-month time clock going to solve our biggest constraint, so we can obviously make enough money to support them and be present with our kids as we're having them. Um so, for context, we sell done-for-you content marketing marketing services to door-to-door and life insurance salesmen.

0:55We do content and ads for them. We make a million dollars per year, and we want to be at the $10 million per year mark, but our churn averages at 17% per month. Um I think it's an issue of being too far down market. Um and so, I'm I'm wondering how do I create an offer and marketing that will attract upmarket people and decrease our churn. >> Yeah. So, um okay. So, you're doing done-for- uh done-for-you for door-to-door right now. Are you helping them attract sales people? Are you helping them attract uh like home homeowners?

1:25>> Sales people. Helping them grow their teams, yeah. >> Yeah, yeah, got it. Okay. Um All right. So, when you're saying So, the Okay. So, what's Are you just doing just doing lead gen and then All right. Let me reverse. Which avatars are working out? >> Really just the higher-earner guys um that and that that are getting recruits. What's really hard about the industry is like we can get people to get recruits in their downline, but then when they're not like

1:54>> Mhm. >> high-enough-level people to train them, then on the back end they don't actually make any money off the people they're >> Yeah. No, that tracks. So, what So, then if you were to say, what are the requirements in terms of revenue uh for somebody to like or or team size for someone to like to be a high likely candidate of not churning? >> Yeah, our best best clients make over 800k a year in in personal commissions and plus how much they make on the their downlines. Team size, it kind of varies by industry how big your team needs to be. Um but yeah, like around the 30-person mark on their sales team is is a good indicator.

2:31Alex >> Okay. So, to me I hear call it 750 750k plus is qualify number one. Number two is you have to have a training system. And number three is you need to have at least call it 10 plus guys. So, if every person that you signed up had a training system, had over 10 guys in their downline, and was doing 750 a year, would you say that that would be a good avatar to work off of? >> Yeah.

2:55>> Okay. So, that's number one. Now, um what's the price point right now? >> Uh it is We have two packages. Our top package is 39.95 a month. Uh lower package is 3,000 a month. >> That's weird. It's the same price. Um what's That is the by the way the same price um from a buying like a buying bucket perspective. It's same same. Um so, of these call it three and four K a month uh customers, do you have any idea what the churn is amongst these more qualified people?

3:33>> A lot lower. Uh I I can't say like a specific number. >> Would you say it's 5%? Would you say it's 10%? Would you say it's half? >> I can say that these people stay for like over a year. Other people will stay for like three months. >> Yeah, game over. Okay, this is great. So, what's CAC right now? >> Uh including the sales commission, it's like 2,100. >> Dude, hold on. So, is the only reason you haven't scaled this up? Um, well, okay. Let me ask the other question.

3:58What percentage of customers are the ICP or this good person versus the bad person? >> Oh, so low. We have like six. Uh, six out of the 40 that we manage that are the ICP. >> Okay, got it. So, I think what you're going to need to do is this I'm going to give you a short-term and long-term, okay? Cuz you got to make money today, but like So, what I want you to do is I want you to have um basically 5K um, as your price to the uh, to the minnows who are coming in.

4:29>> Okay. >> Five or six. I I'm kind of agnostic there. Uh, for minnows and just say that it's billed quarterly. So, that's actually a price drop for you. But, I think if it's billed quarterly, it'll give them more runway to actually like get going and whatnot. It'll have a little bit bigger commitment for you and you can still generate some cash. This is short-term. Long-term, what we need to do is we need to change all the messaging to the avatar. To the correct avatar.

4:54And so, if you only talk to the correct avatar like whenever you talk to uh, a slice of the audience, everything underneath always applies and it basically cuts off around what you're talking. So, if you're if I say, you know, million-dollar plus business owners, um, like obviously we qualify everyone for you know, a million plus, um, minus the people we grandfather from the launch. Um, but there's we get tons of people who are below that who apply, right? And so, we just have to qualify the people that we sell. And so, if the messaging doesn't say this, then you're not going to attract them.

5:26>> Yeah. >> Right? >> Okay. >> Now, how much does cuz you might be a little mispriced because I kind of like I kind of like like 5K a month and 5K a quarter. So, 5K a quarter for the minnows. >> the two tiers? >> Yeah, cuz they're they're too close. 3K and 4K is the same number. >> Yeah. >> So, I want to take the lower one, make it lower. I want to get closer like $1,500 a month, that's what I'm thinking. And then for the higher tier, it's like those guys, the 5K a month is nothing for them.

5:57Right? >> Yeah, but they think it's a lot often times, but >> Yeah, but I mean No, but like every they're sales people. Like, I mean everyone's going to negotiate. Like, every vendor I have is charging me too much. Like like whatever. What we care about is their behavior. Are they canceling? No. So, it's not too much. Right? >> Yeah. >> And are they buying? Yes, when you get them on the phone, right? >> Yeah. >> Right. So, I I mean, I think and this is you're going to you're going to, you know, [ __ ] your pants when I say this. I think you're probably going to be in a world um where you might be at the 5 to 10,000 a month in the not too distant future. Cuz remember, 750K is the minimum, right? People above that you know, 60K, 80K, it's not going to make a huge deal cuz if they're going to get all the sales people they need to triple their income.

6:43Like, what are we talking about? You know what I'm saying? >> Yeah. >> Right. So, >> two questions with that. The first one being so, how we get our leads right now, I do a little bit of paid ads, but mostly like organic content. And I just feel like the the amount of people that are in the ICP from a content perspective is so small. Like, I don't know what the total TAM is, but it's not I don't feel like it's enough to if I'm making organic content, it'll actually perform well enough to get

7:11>> Dude, welcome to my world. Do you know what percentage of businesses are uh one There's 9% of people who own a business. Of the people that own a business, percentage of people that are over a million is like 5% of that 9%. That's just a million. Forget 10. Right? Just a million. So, we're already like half a percent of all people. So, like there's nothing wrong with saying I'm skimming from the top and I'm serving. Because what Here's the thing that that that that If I could show you a map visually, did you watch the um the YouTube video I made that was like the 5111 rule? Did you see that one?

7:42>> I haven't seen that one, no. >> Watch it, okay? So, that video basically I put this map out where I put 100 circles to represent 100% of people, right? And if you draw a line in the middle, if you look at all wealth, 50 of those dots have $2. And then the next like 40% have like $25. And then the next 9% have like $36.

8:10And then the top 1% has like $32. And if you look at that map, the fact that you can only serve this tiny amount is not a tiny amount of the money. >> So, you So, you think putting out content as the main source of getting the leads like it in terms of the content >> Content and ads. Content and ads. All the messaging through the funnel and the offer needs to apply to this avatar. Cuz you're going to spin your wheels forever at 70% churn. You're not going to grow.

8:39Alex >> Yep. >> Right? >> Yep. That's how it's been the last year and a half, so >> So, you're going to still get middos and that's fine. We're going to put them into a lower price at a less frequent billing cadence to hopefully give them a little bit more on-ramp time without them having to make another purchasing decision to hopefully get kind of upskilled enough to make it work. Inside of that middos thing, I would probably include a training on how to build a training or just build a [ __ ] training and then give it to them and then have them execute it. Some of them are going to do it, some of them are not. This is short-term cash flow, but the long-term play and I need you to do this in terms of your data tracking, separate out your ICPs from non-ICPs and then track that churn separately.

9:14Alex >> Okay. >> That's the churn I care about. If we can get that churn to sub 3% a month, we're [ __ ] killing it. All right? >> Okay. >> That's the game. >> Amazing. My second question is in terms of what that lower So, for 1,500 a month, we have our our like cost to deliver for delivering everything. >> Do less. >> Just do less. Less pieces of content per month or less >> I mean, realistically, you need to use AI more and automate a huge portion of that.

9:41>> Yeah, yeah, yeah. Recently learned that. Yeah. >> Yeah. >> Okay. >> Like, we have a we have a YouTube channel that we just started that with one guy, and we're putting out 20 videos a day. >> That's crazy. Yeah, it's crazy. >> Right. So, like, it's you you have to lean into this, and if your team's not like the biggest thing out of all this is you like your your cost basis and your pricing is based on your old delivery model. We need to change the delivery model so that you can have significantly higher gross margins.

10:07That's like big flashing Vegas signs. Beyond that is change the avatar to 750. They have to have training in at least 10 sales guys. We can split the pricing for minnows and whales. Minnows get 5K per quarter. Whales get 5K per month. Messaging has to now match this new avatar. We need to segment churn. Number four, segment churn between the uh ideal customers and the minnows so that we can actually track. Once you hit, I'll just call it 5% a month churn with the correct avatar, scale it.

10:37>> Nice. That's amazing. Thank you so much. Yes, super cool. >> Appreciate you. If you are a business owner and you are not growing as fast as you'd like, I'd like to give you a free gift. So, my team and I put together the 100 million dollar scaling road map, which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so, we broke it into these 10 stages, and we made this little kind of quiz thing where if you put in your business information, it'll tell you where you're at and the most important part for you, what to do for each of functions of the business across product, marketing, sales, customer success, recruiting, IT, human resources, and finance. And so, no matter what you're struggling with, someone else has already struggled with it and solved it. And so, I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap, plug in your business information, and if you want us to actually help you deconstruct the business and you're trying to scale, we'd love to help you out on the thank you page. You can just book a call with my team and we will look into business, see if we can help, and if we can, we'll invite you out to Vegas and we'll do this in person live.