Content Konsistenz schlägt Perfektion

0:00I've been creating content since 2016 in the sports betting and fantasy football space with a 2-year hiatus where I was the head of content for Cody Sanchez. Okay. Um so that's relevant in a second, but um >> [laughter] >> I just went back out on my own >> Foreshadow it. last June. >> Quentin Tarantino style. Okay, go for it. >> So, last June, so 10 months into going back into my original business, we did a million in revenue, um 850k in profit, mostly from short-form content um driving affiliate sign-ups Okay.

0:28incentivized offer. >> Yeah. Um so I get paid once for a conversion, but I don't own the customer, don't own the LTV, nothing like that. I'd like to get to 5 million. Um I thought my constraint when I got here was LTV, um but after coming here, I finally come around on I just need to do more of what's working. Um so I'm on board with that. Um but the reason I mentioned Cody before is we had a pretty similar strategy as you guys is where it was a lot of volume on one account.

0:53Whatever, try and get to like seven to 10 really good piece of content per day in a perfect world. My area is a little bit different because it's not evergreen. My my content's only basically relevant for a day or so. So, my question is >> I want like yours is way easier. Okay. Cuz I have to think about how to make LTV to CAC different this week than last week. >> Sure. You have news. You're a news reporter. Yeah. So, talk about the news. It's essentially like the format that I found that converts the best is just like a listicle but picks for a specific event.

1:25So, if there's a night football, five picks, you convert just get people to sign up for these apps, they deposit, we get money. >> Yeah. Um but if I was to post more of those on the same account, I cannibalize views a little bit and I'm not exactly sure why that is. >> Yeah, so it's so it's it's usually it's a quality thing. Okay. >> It's not actually like you've probably seen the account that posts 100 times a day on Instagram.

1:49>> Right? So, uh Instagram and Mosseri has also said this publicly. Like they in no way penalize you for posting. So, yesterday I was talking about how, you know, it's kind of like a dot on that circle, which is what gets shown for every every post. >> Yeah. If you post five times, just more dots see it. >> don't think it's different that evergreen versus topical? No. Don't think it matters. Okay. >> At the end of the day, you're just looking at impressions per month. >> So, you feel better about one account versus many is what you're saying. Yeah, I don't even know where multiple accounts would even come into play.

2:15>> of many accounts was to post more videos about the same events, but >> now. Just post more on the same >> Yeah. Just post more on the same account. Okay. So, then I guess my other main concern with the business, like I said, LTV was my main concern. Mostly, I'm nervous that I'm just a whale affiliate and I don't actually have a business since the majority of it is coming from basically short-form video, TikTok, Instagram, and then whatever these platforms will give me based on a CPA basis. Mhm.

2:42So, my question is is it okay to basically not have a product that I'm pushing these people to later on or is that a distraction? >> Just depends on your role. If you're like, I just want to make money make more money. Uh if you're like, I want to have something that I can sell someday, then it will be difficult. Honestly, it'll just be difficult with the space that you're in. You'll have to own a betting platform more likely. >> Sure. So, even if I were to say, "Hey, you know, put an education product together that shows your methodology for, you know, doing bets." Cuz I was I talked to a business that was in the exact same space as you doing about 4 million a year. Okay. Um and they had a school community where they would basically show people kind of their betting strategies and also got the commission after they got people into that community, then said, "Cool, here, use all of our suite of tools." And they got commissions on all of them.

3:25>> Right. And so they own the customer and they were able to get all the other affiliates. Is that business inherently valuable? Probably not still. Now, the only people who it might be potentially valuable to is to be purchased as a media asset for one of those larger betting things, but in that instance, you would still need to be way bigger. Right. And so like kind of like what we went through the the the list yesterday of, "Okay, sufficient revenue." Well, that's checkbox number one, so start there. Like you have to get to 10 million a year. And then at that point, if they're willing to pay you 10 million a year, it means they're making 30 to 50 million a year off of your business minimum. And so then at that point, it makes sense for them to swallow up that acquisition channel because then also if you think about from enterprise value perspective, if you're bringing them 50 million a year and let's say they run 40% you know, net margins

4:09>> Yeah. 20 million in EBITDA and they probably trade at 12, you're $240 million a year at enterprise value to their business. So, they're willing to give you probably a pretty fat multiple to just to own that. And so the idea is you want to become a whale because you want to be so big that they're afraid of losing you and that's when you get leverage. Interesting. Okay. >> [snorts] >> So, more. More. More is the answer. I think I've come around to that. >> Yeah. Thank you. >> [laughter] >> You're welcome.

4:33So, 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.