A $47 Course Outsold Her Entire Business

0:00Hi Alex. Totally trying not to black out right now, cuz this is very cool. My name is Jenny Blackwood and 2 years ago I was a stay-at-home mom. We were surviving on my husband's income. He was a successful realtor real estate broker and real estate market crashed, so did our income. Bills started stacking, freak out. I became an entrepreneur 11 years ago, stepped away at a corporate not my thing. So for me I was like, holy [ __ ] I'm going to have to go back to a 9-5. I had a toddler at home, baby on the way. That was not an option. So I decided to start a traveling mobile charcuterie bar to go to weddings, corporate, all these things, but super flexible, cool, different. Start that, go viral right away, awesome. Then I started I went viral right away. It was wild.

0:44Like my first thing I put out was >> [laughter] >> It was really crazy. So started that, but what I realized very quickly is my inbox was filling up with other women literally around the world saying, oh my god, how did you do this? I want to do this, too. I shot the gap. I said, well, it was really hard for me to start this, so I'm going to create a course, throw it up on stand store. Today it sold over 6,000 copies.

1:08What was the price? 47 bucks. 47 bucks. So then I started realizing people were buying the course, but then there was no accountability, there was nobody to answer questions. I decided to start a coaching program. So it's a 10-week program where now I help 9-5 women, mothers. 2,500 is my PIF price, but it's 3,500. So people I have We'll cut that part out.

1:34>> [laughter] >> Cut. So I've had over 260 people go through this program in the past year. My first year I did 600k in revenue, which for me as a stay-at-home mom was like, holy [ __ ] What am I doing? It was awesome. But now I'm feeling like I'm plateauing. I'm trying meta. I'm doing 200 bucks a day on ads. I maybe have like five to seven creatives going at a time and I have one sales person who does one call a day four to five days a week. So

2:04>> Okay, one call? >> One call a day. >> Feels low, okay, got it. >> His >> So >> [laughter] >> So do you want to do more? >> I want to do 5 million a year. >> Great. So why don't you do more? >> Do more? >> What No, but real I'm I'm not trying to like we can work through it like what's stopping you from doing more right now? You're spending 200 bucks a day. >> Yeah. >> What's What's else like they're taking one call a day, what's close close rate? >> Uh This is one thing I found out here is I do not have the right data, but I would say our close rate is probably 40%.

2:35>> Okay, so a deal every other day roughly. >> Yeah. >> Somewhere there, okay. >> Some days three to four people close a day, just roll the punches. >> taking one call, how's that possible? >> I do group calls. >> Okay. >> My My leads are high, so I do group calls. >> Yeah, got it. Uh but it's one call for a group of people. >> Yeah. >> Okay. So uh you could spend more than $200 a day. >> Yes. >> How do we feel about that? >> I feel great about it. I just don't know what the magic number is.

3:03>> Oh, the magic number is you keep putting money in until it stops. >> so you keep it rolling. Okay, perfect. >> Yeah, [laughter] yeah. >> Yes. >> Yeah. Yeah, you run it hard until the wheels fall off. >> Okay. Yeah. >> Um how's that feel? >> It feels good. >> Okay. >> I also think I don't have enough creative going, you know, I get I think my return on ad spend is like a little over four something percent. So and it's just me doing it. >> I'm guessing four X is what you mean. >> Yeah, yeah, yeah. Sorry.

3:30>> Yeah. >> Four X. Um so that feels good. >> Yeah. >> But I don't know. I just feel like there's between not having enough sales people, not putting enough in ad spend, I just how do I go from 600k to 5 million? >> Uh well, you you'll probably get to spending like 5,000 a day instead of 200 right to get there um because you're going to get some inefficiencies as you scale up because you're going to get into like right now you have warmest people who are coming in. >> Yeah. >> It's going to get progressively colder.

3:55I'll bet right now you have a warm sales process as in like the motion itself is built for people who kind of already know who you are. >> Yeah. >> That will not scale. And so what we need to do or what you need to do um is build a cold acquisition process. And like the easiest way is if you can dodge a wrench, you can dodge a ball. If you can sell to cold, you can sell to warm. But if you sell to warm, it doesn't mean you can sell to cold. And so we want to build a cold process and if we want more people to go through it, they just get extra hot.

4:21>> Yeah. >> If they're cold, they go through it, they'll get lukewarm enough to buy. >> Yeah. >> Right? So think of it like a microwave. So right now you're just serving ready-to-eat food that's already heated. We got to have a microwave in the system to heat them up. >> Yeah, makes sense. >> That's what you need. >> Awesome. >> So we'll probably have like realistically if it were me, I would build that process first and then I would add gas. >> Cool. Thank you so much. >> Congratulations. >> Thank you. >> [applause]

4:52>> Hi Alex. >> Hello. >> How you doing? Great to meet you. My name's Carlo Crosetti. Um I sell steak, a lot of it. >> Sweet. >> Um I have one company. One's a whole Well, it's one's a DBA. I'm in the wholesale end. >> Are you more of a broker or do you grow the cattle and do all that too? >> No, no, no. Everything comes in boxed beef from out west. >> Got it. Okay. >> So I'm a manufacturer on one side >> Uh-huh. >> and I'm a retail um establishment on the other side. >> E-commerce or brick and mortar? >> Brick and mortar. >> Okay.

5:19>> Um the wholesale end does about it does 20 million. >> Okay. >> My EBITDA is about 2.7. >> Okay, great. >> And the reason why I know I've been doing this as of late is because I've been approached. >> Okay. >> That business is kind of capped, right? I don't like to be capped. >> Okay. Why is it capped? >> In the food service industry >> Uh-huh. >> there's distributors are buying everybody up, all the big guys. You know, you have Cisco, US Foods, PFG.

5:45They're taking over the world. >> Uh-huh. >> So, when I used to have eight or nine customers, aka distributors, right? Now I'm like three and a bunch of little ones. So, with that they're all buying their own meat companies as well. But what's great is that I'm doing 2.7 in the year, you know, 20 million in sales. Now, retail side, I have a little 2,000 sq ft building. >> Yeah. >> And it does 10 million. >> Amazing.

6:09>> About 500 I don't know the real number yet because I share a lot of expenses back and forth. But I don't want to be capped. >> [clears throat] >> So, being approached, I've been approached before, but just recently I've been approached. So, my whole idea of coming here has changed in the past couple weeks. Do I move forward with that and do I double down you know, on the other end. Now, I have there's more passion on that end, too, cuz I'm a fourth generation uh business owner.

6:38>> Yeah. >> And um there's not many of those left. >> Yeah. >> And and some of my competition, I've seen them gone. I'm the only one left in my area. >> Yeah. >> So, part of me is like, all right, I have a thumb on the forehead on the wholesale end. >> Uh-huh. >> Not that much passion. There's more passion on the other side. >> Okay. >> But do I move forward with one thing and double down and really grow the other side? So, I'm at a crossroads and it's just a recent thing. >> Yeah. >> So, that's where I'm at. >> I'm going to go out on a limb here. It sounds like you're pretty decided.

7:05>> Um well, >> You're like, I've got this exit. I've got this exit here. I don't like it. I'm capped. I have passion here. I want to expand. I'm fourth generation. Well, yeah. It's like you you had all pros on one side and all cons in the other. So, what's the real question or what's holding you back? >> I'm greedy. >> Okay. >> Yeah, like, you know, that's >> Well, they'll pay you for the business. >> Yeah. Yeah, but >> [laughter] >> They'll They'll give it to you, right? >> Yeah, they're they're they're I'm going through it right now and you know, going through that process. If anybody's gone through that, it's

7:35>> Harrowing, yeah. >> Yeah, it's nerve-wracking. >> Yeah. You're like, "Oh, I didn't know that's what my prostate looked like." You know. >> [laughter and clears throat] >> Yeah, it's it's but it's also it's a big change. >> Yeah. >> Um they probably want to keep me on board if that was the case. I'm assuming for about a year. I would I would do that. I would do it for free cuz of the passion. But do I make that leap? >> Passion for the wholesaling? >> In general, I do. >> [laughter] >> But my word is everything in this business, right? >> That's fine. Yeah. >> And if I tell someone this is the way it is, I'm going to make sure it's everything I said it was.

8:03>> Understood. >> Yeah. >> So what stops you from selling it? >> Greed. >> What What Tell me more with this greed thing. Like what do you mean? >> money. It's 2.7 out of 20. >> going to pay you a multiple on that, right? >> Yeah, and it's strategic. It's a strategic acquisition. >> the multiple they're giving you? >> What's that? >> What multiple are they talking about? >> Well, average is five. But being strategic, it's a venture capital firm that is um currently has like two or three years of putting assets together.

8:29>> Okay. >> And what I do is push control cutting, right? So all the big food service distributors, they need that element. Some of them have them. Some of them don't. >> Got it. >> So and one more thing I didn't mention the multiple. >> Multiple, though. >> What's that? >> What's the multiple? >> I think it's seven. >> Okay. So you get seven. All right. So uh let's just call it two and a half times seven, that's what? Uh uh What was it? >> 17. >> Sorry. Messed my math up while I was saying it. Yeah, okay. 17. Great.

8:56>> 17. >> So $17 million. One of the benefits, though, is that you're paying regular income right now, probably. >> Mhm. >> So you get it at capital gains. So it's kind of like add, you know, 20%ish back to that. So it's closer to like nine years of whatever the math is. Nine or 10 years of uh of of income. >> Mhm. >> So if you're capped, that's what you're giving up. And then with that money and all the time back, do you think you could grow this one to get to 2.7 in profit?

9:26>> I do. It's almost >> Yeah, I mean, it just sounds like you said you're really passionate about it. It's an exciting thing. Um I mean, there is again no no right answer because what this comes down to is a risk question, which is entirely personal. >> risk too is on that end >> Yeah. >> six about 60% of the business >> Yeah. >> is one account. >> On the retail side? >> On the food service >> On the food Yeah, got it. >> That's that's the risk, right? So, any one day they could come in and say, "Hey, yeah, thanks a lot, Kyle. We loved you, but see you later." And I live with that every day.

9:53>> Yeah. >> And a lot of families that will work for me. Like, I care about that. I don't want that to happen. >> Yeah. >> Yeah. >> Uh but back to the sale. >> Yeah, yeah. [laughter] >> Uh so so I'm still I'm still struggling to figure out You said the greed thing, but that doesn't make sense cuz you're going to get Oh, you're going to get a payday loan on 10 years worth of income. So, like, well, there's your greed. >> It's a lot of work. It's been a lot of work, a lot of >> You mean selling the company? >> Uh building the company. >> Well, yeah, they That's why they pay you for it. Yeah.

10:21>> Yeah. I'm uh I just something I'm battling. I'm at a >> No, I got you. I got you. Um the I There is no right answer. Um there is probably a right question, which is 10 years from now looking back, which one will you regret more? Not going for it. And I think underneath of that, which is like, what person do I want to become? And which of these paths get me closer to that being that person? >> You make You make it easy. >> [laughter]

10:46>> I'll be totally honest. Nice hearing it on the other end. And um I had a different question, but since it was you, I figured I'd ask you the million dollar >> [laughter] >> question. >> Hopefully it that helped. >> It did. Thank you. >> Okay. Appreciate you, man. >> [applause] >> I got a special question for you. Feel like Feel really good. Hello. >> I'm Mason Haley. I'm from North Dakota. Um I'm a dental practice owner.

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