Software oder Coaching: Welches Geschäft aufgeben?

0:00Sorry. Now, now next thing I think that would be relevant for >> Thank you. Thank you for clarifying. Um, yeah. So, I guess that uh leads me the reason I asked you that first question like um you know what would you do? But I just in my head I just kind of something I've been thinking about doing. I haven't done it yet. But >> I guess shutting down the coaching business, but I still love teaching what I teach, but in a way that is I guess more interactive or done for you. So for example, instead of people going through a course, which some people don't even go through it.

0:33>> Yeah. >> Uh giving them like an interactive way of doing it. So like for example, hey, you know, you got to go find a product, but >> um you know, there's a software that I created that actually helps them find the thing. >> Um so I don't know what do you think of that? Have you ever heard of anything like that where it's like >> I haven't heard of anything like that, but I mean I think you providing more services to increase the likelihood of someone's success is not a bad idea. Just depends on cost,

0:57>> right? Well, I mean now with AI, you can create softwares pretty quickly, right? So, I mean, like in my head, I'm like, okay, I have tons of knowledge when how to do all these things, you know, you put it in a >> So, the question, should I add software to my existing offering so that I can increase the likelihood that people will succeed? >> Yes. >> Yeah, I think that's fine. I mean, there's no if there's >> not sell the courses, but sell like uh you know, you always say you I give my best stuff for free. Uh Austin over here, he gives us best stuff for free and then he has his syllabi AI software.

1:26So I'm like this is that's a great idea where it's like he gives all his stuff for free but then >> they have to use your tool. >> They have to use the tool. So that I don't know that's >> amazing on paper. >> Yeah. >> I have yet to see someone pull it off. >> I'll be the first. >> Okay. I just I just look at I'm again Well, hubris aside, right? or you know ego aside I prefer to take bets where I think that like you it's your life you can do whatever you want um if I see that no one else has succeeded doing something then I think there must be some fundamental assumption that I'm unaware of or that I'm making that is not true that is causing all these people to fail like what is it

2:05>> and I'll tell you what my theory on what it is is that it is the wrong type of avatar >> when you are promoting get-rich quick get-rich easy get-rich passive you are attracting the absolute cesspool of the internet, right? I mean, I mean, it is, right? Um, and so if you do that, you have to there's so much effort that has to go in to making a scalable offering. Also, if you really do it right, it also won't be profitable for a long time. So it I take the position that the best businesses operate on either side of the barbell, which is either you sell extremely expensive things to people who are qualified to buy them and you try and sell them, you know, as many times as you can and keep them buying from you as long as you can until eventually you have the cash and the infrastructure to be able to sell to everyone.

2:54The middle is where everyone dies. So like my the first part of my career has been all this and obviously we still have the advisory practice which is here but school sells $9 a month. >> How can we make that make money because we have a good business model but like it takes a long time and it burns capital in order to get to a multi-billion dollar decaillion dollar company. >> And so what happens is people are under capitalized try to pursue this strategy but don't have the product chops and so marketers make terrible product people

3:24>> because they only think about what they can sell not what they can deliver. makes sense. >> Like every marketer that I know, I have yet to meet a marketer that was a pure marketer that still does their marketing stuff and then has a software and then is able to have an exit from it. And there is a a graveyard full of halfbuilt, semibs, semi-white label, whatever software that never actually accomplished anything. Like you have in order for software to actually be software, and this is for everyone because I feel like I get this every every day.

3:57software is not valuable. Like please write like software is not inherently valuable. What makes software valuable is the fact that it has high gross margins and when it's built right it's sticky and has high revenue retention and when it's built even more right it has virality or some sort of growth loop that's built into it. So if you have a business of any kind that can grow on its own has high incremental or gross gross margins for the product and so I said growing margin what was the third one thank you and high revenue retention you have an incredibly valuable business whether you sell trash or whether you sell software it's just that software tends to be something that can accomplish those things but the amount of marketers who are like I have an info business I'm going to start a software so that I can get a $100 million exit doesn't work that way that's why none of them do it they think that because they don't know how it works you have to build a product that has those components and then in it of itself it will become valuable. But if you need to keep filling it up in order for it to maintain a certain level of revenue, it is not a good product because people are shutting out. It has to be sticky.

4:58And when you have the cesspool of the internet, it's very tough because they inherently jump jump around over and over again. And typically the price points that people who come from the infodirect response world is way too high for someone who's a newer person or a beginner to actually be willing to keep paying even if they haven't gotten results yet.