Partnermodell oder Gehalt: Vergütung im Door-to-Door-Vertrieb

0:00I own basically 45% of one branch of a pest control company and we're mainly door-to-d dooror sales. I'm a door to door sales guy. I happen to do pest control. I run door to door sales teams. We're at a million dollars a year uh in AR. Next year, uh I'm opening up more doortodoor sales teams in different markets and running multiple of them. And my challenge is I have two options on how I want my compensation to be structured. And I'm curious what you would think. one, I can continue with the partnership model where I own 45% of each branch. I'm also responsible for technicians and like all the operational stuff and all the money spent on the bottom line.

0:38>> Okay. >> Or I can take more of a marketing deal where my only responsibility is the sales and the door to door >> same owner. >> Yeah. >> Okay. >> Well, I don't think that really matters. I mean, it might I don't know. Um, >> you know how to build door to door sales teams? >> Yeah. And then so the other option so basically I can take 45% ownership of the branches and also have to manage operations. >> Do you want to sell someday or no? >> So >> because you're in a space that does have multiples.

1:06>> Yes. Um and so the the math I was doing and I'm curious what you would think. >> This is a math problem for sure. >> Yeah. Is average customer per year around a thousand bucks. >> Okay. >> Churn 33% a year is at my branch. >> Uhhuh. So average customer lasts three years. >> So it needs to go higher, but yeah. >> Yeah, >> you need to extend LTV. Yeah. Okay. >> Yeah. So average C. So LTV is basically $3,000. We don't really make money the first year because we have to pay the sales team. So $2,000 is like there's actual margins on it.

1:39>> Around 30% margins is what we run. >> So that's $600. I own 45%. So I'm getting like $300ish dollars per customer. >> Yeah. >> But then that doesn't take into account any kind of like maybe like enterprise value. But then I'm I'm a minority owner, so it's like it's not like I can really just like sell. So like is it real? I don't know. Like should I even value that? And then the other option is take like more of a marketing deal where I'll be getting a similar amount.

2:07>> What do you want to have happen on what timeline? >> So I want to own like $100 million in pest control. >> Okay. My thesis is that and my gut reaction is I take the marketing deal, make a lot of money next year, and then can buy pest control companies with that money that I own 100% of and grow the sales teams that way as a gut reaction. I'm curious what you think.

2:34>> You're you're in like a happy to glad situation if like either of them would work. And so I wouldn't like kill yourself over it cuz like both fundamentally the only thing that really matters is that you're very good at building the sales teams. >> Yeah. in either of those scenarios because you're thinking about the right way, you'll make money. [snorts] >> So like how much is going to depend on a lot of variables that aren't in your control. Yeah. >> So like play both of them out. So let's say like the whole $300 thing like like who cares? It's the only thing that's going to matter on the 45% equity one is the exit value. Like most of those businesses basically eat cash until you sell. Yeah.

3:02>> Because every new location, new branch, they go negative and that's the whole game, right? >> Exactly. >> Um but they do have good exit value, you know, exit multiples. Just pencil a 10 in. Um once you guys get to So what's each location do? So you're doing a million topline. >> Yeah, but I I opened it up a year ago. >> Okay. Well, what do the average stores do at scale? >> Like five to seven million. >> Okay. And so they do call it million and a half 2 million in IBIDA. >> Yeah.

3:26>> Okay. Got it. So basically once you get five stores at you, you basically cobble together 10 million, you've got a $100 million exit right there. If you have 45% there's 45 million. >> So and then also the tax treatment on that is going to be lower uh because it'll be you know you'll you'll pay uh 20% on it. So you'll net, you know, high30s. >> Yeah. >> Uh from the deal. >> If that's something that you think you'd be cool with on a 5year sprint, >> then that's kind of what happens. I would just get alignment from the person who's got 55 of like

3:53>> if we get an offer above this and you can also you can pencil terms in for that too, which is like >> if we get an offer above this um we have to take it or you know what I mean? Like you can those are those are agreements and like most times if you ask that 55% person like would you sell if we got $100 million offer? They probably say yeah. In which case, great, you're aligned and then just paper it and then you're good to go and that's the sprint. The marketing thing of like I want to do it so that I can own my own. It's like you can probably just get you only want to do that because you want control, right? I'm guessing.

4:22>> Does the partner do anything? >> Um, well, so partner taught me everything I know, but now I kind of know it. >> Okay. >> Um, partner capital to start, but once I have the capital, I don't really need that. Right now, they also handle admin and finance functions. >> Okay. >> But >> Okay. Yeah. >> So, um, so this is an interesting one because like it is very much the timeline is what matters the most here. >> Yeah.

4:47>> On a shorter timeline, it makes more sense to just go equity. On a longer timeline, it makes sense to own your own. >> So, partner wants to run for 20 years of that. >> He wants to run and not sell for 20 years. >> Yes. >> Okay. Same age as you. >> No, older. >> Okay. Then I think you can start your own. I mean, realize that they probably do a lot more than you think they do. >> Yeah. >> Yeah. So, it's not like he does admin and finance. Like, he probably does more than that. >> Okay. >> Just like, yeah,

5:11>> fair warning. Um, but also like >> you deserve the chance to get kicked in the teeth, >> you know? >> Like, I don't want to rob you of that of the pain and suffering. >> Yeah. >> Um, I'm not making fun of you, just to be clear. >> So, I mean, and for more context, too, like he hasn't like he hasn't come to my market at all. Like, I've hired every technician. >> No, no, you're good, dude. You're fine. Um, I just mean like there's just always more. There's just always more. Um, but I mean you seem capable and competent and so like if you're again the only question here is timeline and so there is a break even point which you can just literally figure out on an Excel sheet of like where my enterprise value of if I can open up one location per year. I don't know what rate do you think you can open them up?

5:50>> Um it's just a salesside leadership problem. So I think we can get to the point where two to three a year >> right now you could open one a year. >> One a year is where let's just say that you can open five over the next five years. Yeah, >> assuming no increase in rankings. because you also have a decrease of like a whole bunch of you got to learn. >> And so it's like if you had five locations of your own and so the question is how long is it going to take you >> um to get the capital to open up your first location? That's an open question.

6:15How long? >> Um so my first location only went $50,000 in the red like to open up. So if I ran >> So it only cost you 50 grand to open a new location. >> Yeah. >> So not long. >> Yeah. Okay. >> Like I like if I ran >> I think you can do your own thing. Yeah. Rock and roll, dude. Question. >> Yeah, there you go. Congratulations, man. [applause]