Boat Subscription

0:00I have a subscription based >> Boat rental? >> Yes, yes I do. Currently doing 2 million. >> With 500,000 in profit? >> 600, mhm. >> You have 2 million in debt, right? >> Yes, cuz it's pretty capital intensive to have 50 boats. >> So, basically after taxes it's going to take you like 6 years, 7 years to pay the whole thing off assuming you don't spend any money, which would suck, right? >> Yes. >> I don't think this is a bad business. Fundamentally you have very high margins on each incremental membership, correct?

0:27>> Yes, yes. >> kind of at this point where like you've covered all your cost, and so each additional membership makes you a lot more money. So, what stops you from selling 10 times the memberships? What are you doing to grow? >> We spend about 6,000 a month in paid ads. >> What's ROI on this? >> Well, according to the marketing agency that I use, they're very, very [laughter] good. >> According to them they're like, "It's exceptional." >> Yes, yes. >> You just spend all your money here.

0:50>> Yes, I only spend $11 per lead, and that's a fabulous number in the industry. >> What percentage are you closing of leads? >> We're at 4% lead to close. >> So, it two, whatever, 266 is cost of acquisition right now, not including sales commissions. If that's what it cost you to get a customer, what's the membership is 500 a month? >> It's a $5,000 initiation fee, and then $500 a month. We sell 5-year contracts. >> I love this. >> So, that's why I was thinking I do more of it.

1:17>> Yeah, do more sounds great. I love this for us. I love this for us. >> [laughter] >> The thing is is you have a business where this happens a ton by the way.

1:47>> Mhm. Thank you.