Immobilien-Käuferberatung: Ist die Gebührenstruktur gut?

0:00Unternehmer/Gast We sell buyers' advisory services, essentially helping property investors purchase more properties and we're helping moms and dads or small business owners. >> Mhm. >> Uh we did 15 million in revenue with 27% profit margin last financial year. This year we're on track for about 22 million. >> How do you do that? Do you have acquisition fees or what's your fee structure? >> charge a flat fee for service of $22,000, half up front, half upon success. >> Independent of deal size? >> Yeah, it could be an 800k deal size or a 1.5 million dollar house purchase.

0:27>> usually your range? It's kind of like in the >> usually 600k to 1 million price point for a purchase of a property is our range. >> Okay. >> have a secondary service which represents about 10% of our revenue so far. That's percentage based >> Yeah. >> commercial property. They'll usually be two, three, four million dollar deals at a much higher service fee. >> Yeah. Okay. >> Um so we're on track to do 22 >> though. It's four or five percent on those deals so that's pretty good. >> Yeah. Uh we're on track to do 22 million for this new financial year and

0:55>> we want to be doing based on the valuation metrics I learned about 54 million with all those scorecard points ticked off at an EBITDA of about 27% giving us a valuation of 125 million using an eight times multiple. >> Mhm. >> And what's stopping me right now is two things. One is a reduction of CAC that's needed. >> Okay. >> And then the second thing is best people duplication. If we had our top two people in each of our divisions >> Yeah. >> uh the same standard as the rest of the team, we would overnight get to about 45 million in revenue.

1:25>> Mhm. >> So two part question, that's on the best people >> Mhm. >> reduction is that um our LTV is about 22 and a half thousand >> Okay. >> and our >> It's big. It's a big chunk of your your revenue. >> Yeah and right now we have uh CAC at about 6,700. And the biggest problem we're finding >> wait, your CAC was 22 or your CAC was six? >> is 6,600 with LTV at 22 and a half. >> okay, got it. Heard it. Okay.

1:48>> And the CAC part what we're finding is we'll put about 15% of ad spend of target revenue is how we've mapped out ad spending. >> Mhm. >> And then with that 15% it's thrown all over the place. Agency fees, PR, organic content, some Facebook, some YouTube. And so we've just done a whole bunch of channels. >> Yeah. >> Fingers crossed we get some customers. And then we look at our data, it's like oh, they came through meta-origination, but they converted from five other things. They did 10 things along the way.

2:16>> That's your constraint. >> Yeah, we're like, how do we What do we scale? Cuz it feels like everything's working cuz they're all touching every touch point. So we try and do everything more, but we don't know which one. >> Yeah. >> are the two things. If we best practice duplicate, we double our business literally in a year. And if we get our CAC down, we increase profitability substantially. >> So I'll ask a um a a different question. Um if you double everything you're doing, what stops you from doing that?

2:43Independent of the attribution, which right now is lacking, but let's just say you just doubled what you're doing from from a from an acquisition perspective. What stops you from doing that? >> Um well, we got 4 months of topics, so we should be able to have the cash to do it. So nothing would physically stop us. We just wouldn't have a clue if it works or not. We just hope it works. >> Yeah. Well, I'll bet that if you do twice of everything that you're currently doing, it will work. The data piece will come into play if you want to just get more efficient on it. And so it'll it realistically How How long is your deal cycle?

3:16>> Um we usually have someone sign up and then that's the first half payment, and they'll usually sign up within a month of the appointment latest. And then in >> from when they become a lead, do you have any idea? >> What's that? Sorry? >> From when they like opt into anything, do you know how long it takes? >> Uh no. Uh because we've got some people who watched us for podcast for 3 years and they're like, "Yeah, I'm ready to go." And then some people that watched the VSL and they're like, "Oh, I'm not so sure. Okay, for sure I'll sign up and give you a go." But in terms of sign up to actual full cash received, the 22K, it's usually 4 months.

3:46Alex >> Yeah. So um I would I basically double down on branding efforts that gets you the like because if you like one layer before attribution that would be kind of like forensic attribution where you'd really know um would just be kind of directional attribution which is closer to the sale and it would be qualitative which is just like where did you hear about me first?

4:10Alex And that will at least give you some indication of where people are coming from initially because what happens is the deeper you get into attribution the more like nuanced it is because you're like okay well let's say that someone opts in uh a year ago and then they see a short and then they watch a long and then they opt in and then buy a year later. Did they come from the first thing a year ago or did they get converted from the thing that's more recent in the last 30 days? I would argue it's the last 30 days.

4:44If so like it it starts to get a little bit more muddied. So there's something called scientific attribution which is like last touch is the closest to conversion events but will skew everything towards direct response and then you'll split test until eventually become a porn business. And so that there's a it's a great saying by George Mack. He said if you split test enough everything just becomes porn which I just think is really funny but in partially true but on the other hand scientific kind of blends those cuz you go first touch which then it's like well maybe everything is going to be my email list or whatever. If you go last touch it's whatever the right hook is and so scientific is if it's within 30 days then it's last touch if it's more than 30 days then it's first touch and that's kind of blends both.

5:28The qualitative will at least give you direction. So I'll just ask you guys here. So who this would be fun exercise. Who here uh heard first thing you ever heard uh was just from someone telling you about my stuff? Any good hands? Okay cool. Okay so separate set of hands. Um who here discovered my stuff from the book on Amazon first?

5:52Interesting. Wow, okay, cool. So, by that logic I might be like I should never write books, right? So, who here found me on YouTube first? As the first, okay. So, there's there's some. And then what about Instagram as the first? Okay, so between those three sources you kind of got So, if I were to power rank this, it'd be like make really good on YouTube because 2/3 of the room said YouTube and then, you know, another third told people from YouTube.

6:23>> [laughter] >> And then somebody found me on Instagram and everything else almost became irrelevant. But that's top. Right? You still have all the other kind of touch points that happen in between like the book for example. And so, for you, like that wasn't that hard to do. But I think you can mimic what I just modeled for you with your existing customers and then where they tell you the the vast majority of first touch then can inform where you do your reinvestment so you get a disproportionate return on dollars in or effort in.

6:52Alex That would be And so, the the back of napkin way would be qualitatively do that, allocate resources to more than double the one point of greatest leverage in terms of bringing people in, but I would still continue the other quote unquote touches at least as it currently stands because they're probably doing some sort of nudging function or conversion function that's getting people to buy cuz you have you know, you have more complex higher touch services so it's expected for people to take longer to convert.

7:21>> Got it. Um Owens, the second part was the best person duplication. So, I've got the fulfillment team. >> So, it's going to come down to you actually studying the top two guys and being a better student of exactly what they're doing and breaking it down into behaviors so that everyone can do it because everything is teachable. Everything is teachable. There is no magic. It's just a question of how teachable is it and most sales skills are exceptionally teachable within like a couple weeks. And so fundamentally they're doing or saying different things than the rest of the team is. And so once you identify what things they're doing differently, you can then make that the standard for the rest of the team and you can see if the rest of the team goes up. If they don't adhere to those standards, then you might have other skills which is like adherence, work ethic, things like that which are absolutely skills, but probably not worth training.

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