Low-Ticket-Business mit 170.000 Kunden skalieren

0:00I sell low ticket digital video products >> Yeah. >> to churches like motion backgrounds. >> I was going to make a video but like doing better than I deserve, you know, so I keep going. >> [laughter] >> And then um like video editing assets like film transitions, color overlays to filmmakers and editors. >> So you sell to churches >> Mhm. >> and you sell to editors. >> Yeah, it's two separate brands. >> Okay. >> what you're going to say. I know what you're going to say. I've been advised by your team so far that I should actually keep both and that they're both important and basically they're kind of under one umbrella even though they're different avatars. Uh

0:34>> That's me. >> I am at 1.2 million combined. >> Okay. >> Uh about 350 on the film editing side but I do about an hour a week on that. And so uh even lower an hour a week. >> That's right. >> Um the other one I'm kind of going all in on. Uh >> making 6,000 an hour >> Yeah. >> on that side. Okay. >> Yeah, and the other one I'm kind of going more all in on and that's around 750. So between those two. >> Um and that one takes all the rest of the hours.

1:00>> Yeah. Uh I feel that's what is stopping me is I again it's low ticket. >> Yeah. >> Uh ranging between like 29 bucks or like >> church >> Uh no, the church is like we have it that's recurring revenue. It's 348 a year or 708 a year. >> Okay. >> Very low still but um it's above our market. Uh what I feel is stopping me is not understanding the right money model to um

1:26>> Only there are a couple of them. >> I mean I have 170,000 customers. >> Okay. >> Uh so I think it's kind of what you're saying of like a lead. I have a very large lead magnet pool that I could sell into bigger things on both sides. Um but I want to understand how to do that best. >> Okay, I'm going to ask like if you can just rapid fire answer for me. So the AV people you sell digital assets to? >> Sorry, say that one one more time.

1:52>> Tell me that who you sell what to again real quick. >> Video assets to video editors. >> What does that mean? >> Uh color presets, film transitions, film burns. >> type stuff. >> Grains, things that your that your team would use to >> in their own >> Yes, in their own edits. >> Okay. And then on the church side, exactly what do you sell exactly? >> Basically motion backgrounds like that, but better. >> Okay. >> Yeah. >> [laughter]

2:16>> Okay. >> [laughter] >> We'll see. >> Yeah. >> So okay, so you sell these guys graphics, you license them to them for 348 or 708 or whatever it is per year, and how many customers do you have in each of these? And this one is this is one time and the church is recurring. >> Yes. >> And that's why you're going all in on this side versus that side. Where's the 170,000 pool of leads?

2:42>> Uh I've been running the video editing asset side of things for the past 7 years. And so I just have a it's just there's so many loads to get through. >> to churches and then just say other people can use it too kind of thing? >> Kind of. >> Okay. >> Sorry. It's as confusing to me sometimes as it is to you. >> Yeah, so you like the core business is the is the 750 thing and then you have, you know, offshoots of assets that get created for those customers and you say you guys can just license them from me.

3:09>> Yeah. >> But one time though? >> Uh no, it's it's the video editing side is one time. Church is recurring. >> Why don't you just make the video editing side Well, I don't really care about that side anyway. So let's talk about the church. So um what stops you from, you know, tripling the church? >> Um so content has been been a big constraint. I'm a video editor and so I've bottlenecked myself and now I'm finally letting that go and starting to delegate.

3:35>> So your demand constraint not supply constraint on the church side. >> Yep, so I have plenty of ideas for content that's about to go off. Um >> What are margins? >> Um margins on the church side are um probably 60%. >> Okay, good. >> Yeah. Um and then yeah, besides I feel like there's a high ticket offer or a higher ticket offer of some kind to be able to be a little bit more focused with or sort of high touch point with churches, help them build better, you know, processes to have a better visual experience overall.

4:09>> Mhm. >> Um, but I'm afraid to jump into that and kind of break the simplicity of automated digital products that I'm used to. >> Mhm. Mhm. So, $750,000 a year, so you have like 20, like 2,000-ish churches that pay you? >> Yeah. >> Somewhere in there. >> 2,000, yeah. >> Okay. How many churches are there? >> In the country? >> Well, are you I'm I'm are you US focused?

4:37>> Uh, yeah. >> Okay. >> We are international. There's 300,000 churches in the United States. >> can't be that hard, right? >> No, yeah. >> Adquisición, you know. >> Exactly. >> Uh Okay. So, but there's a lot, I'm guessing. So, you can get to like Cuz I'm just trying I'm trying to paint this model out. So, it's like, okay, if you're 2,000, like what do you want to have happened? Do you want to sell this thing? Like what do you what do you what do you want to do? >> Not yet. >> Yeah, no, I mean, but like if you 5x the company, like I just like it's kind of like depends on what you want to do, cuz you have a good business. And there's a lot of elegance to simplicity.

5:10And so, if I think that I can sell you know, a truckload of units, then I'll sell a truckload of units. Like school is one thing. It's $99. You know. Just sell a lot of them, you know. >> Yeah. >> Uh, so there's there's nothing wrong with having just one if it's not getting in the way of LTV. So, why can't you market more? >> Uh, that's I've just been It's kind of been a uh >> take distributions every month? >> Yeah.

5:36>> Okay. So, this will be good for everybody. So, if you're in a service business or what I would consider like not SaaS, but sort of digital type business that doesn't traditionally have the same level of stickiness but has more cash flow and less cap ex meaning you don't have to invest more cash in order to grow. One of the things that took me way too long to learn is that the profit that you have at the end of the year in those businesses is not all yours and so what I mean by that is there's two primary places where it should be going. So number one is talent and then the second one is brand.

6:08And so if you're in that business like the branding components like I have to reinvest in the reputation of the business so that I can continue to grow next year and so that's kind of like the cap ex of service businesses is like that's the investment that we have to make in order to scale which is people and brand. Um and so if you if you were to spend $600,000 which is whatever roughly your profit um this you know the next 12 months what would you spend it on?

6:34>> Uh I want to go pretty heavy on team um to build the brand. Like I'm basically building a >> making more content? >> Yes like an internal agency that can continue to crank out those >> Mhm. >> but also you know >> Well AI should be able to do a ton of this. >> So sorry I said that >> AI should be able to do a ton of this. I'd be thinking more in like Claude and GPT instances and less in head count for what you're trying to do. Like you want to be like in the world of AI which is now by the way um it's about fewer better people.

7:05Because everyone like a lot execution it believe it or not becoming commoditized. So it's going to be there's higher leverage on skill taste and um to kind of strategic thinking until eventually that doesn't matter and then we'll all be useless but um looking forward to that. Anyways so >> I I think it's the taste that would be that I'm hiring for >> Yeah. >> because yes you can technically make that stuff and we have competitors who are making >> Mhm. >> basically AI type feeling stuff that doesn't feel good. Um and that's why we're beginning to grow because people are coming to us for our taste.

7:35>> Yeah. So we just need to increase demand which means you need to make more better content. >> Yeah. >> And so if you need to hire a couple people to do that, that's fine. Um I mean that's it's it's you have a relatively straightforward uh growth path. >> Okay. >> It's the the difficulty you're going to have is on the recruiting talent side because media talent without a brand is very difficult because anybody who's kind of good can make more money than most people pay them.

8:02>> Okay. >> That's the that's going to be your bottleneck. >> Yeah. So you wouldn't even really explore a high a higher ticket deal. >> Well, I just don't think I can I couldn't really think of what a high ticket background would be. >> Um a lot of churches are volunteer based. So it'd be helping them helping their the team leads install better processes for their >> Well, then you're becoming a church consultant. >> Yeah. >> Feels like a different business. >> Yeah. >> Yeah.

8:28I would just say like why don't we just like just double down 20x this thing. Okay. Like you it's There's so many times where it's like hey to make more money I could come up with another thing. It's like you could also just do more of this thing. >> Cool. >> And then figure out and like to be fair the core hard of this one is just like how do I get more? And if it's not immediately apparent that's the hard problem to solve. >> Cool. Awesome. Thank you. >> Yeah, you bet. >> If you are a business owner and you are not growing as fast as you like, I'd like to give you a free gift. So my team and I put together the $100 million 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 just book a call with my team, and we will look at the 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.