Nachhilfevermittlung in Hongkong: Umsatz verdoppeln

0:00Unternehmer/Gast I connect students with tutors in Hong Kong and we charge two weeks two weeks money for successful matches. What do you do with students? Uh matching the private tutors for them. Tutoring, okay. So you do tutoring in Hong Kong, you charge weekly. Yeah, charge two week. You charge for two weeks? >> Yes, for agency Okay, every two weeks? Just two weeks one off. That's it?

0:23Alex That's it, yeah. Okay. Yeah. So you tutor people in two weeks? Um the private tutors help the students for two weeks. For for long time but we charge the first two weeks. Uh we take the first two weeks. >> Oh, so you connect them. Yeah, we connect them. Matches. Okay. >> Got it. Okay, understood. Okay, uh we do 200k last year 70% margin. Great. And I would like to double if possible. Okay. But um 90% of the traffic is come from organic search.

0:55Okay. Uh Google organic search. Um how could we do more in Google organic search if we have already done it and the business model they said is kind of hard to scale. Is that the constraint? I mean I don't know if it's that hard to scale. Um are you are people checking out on the landing page? Or do you have a phone team? No, we have to call them. Phone team. Okay.

1:21So I mean there's so many things we can do. So first off have you considered charging for four weeks instead of two? Yeah. Okay. And the reason that you don't do that? Um we tried it. Actually we increased the price. We tried 2.5 weeks or three weeks. Some of them are willing to pay actually, yeah. But four weeks never tried. Okay. So that's one consideration. The other piece that you can that you can put on is that instead of trying to do a revenue share with the tutor which I know that they they'll go around you and that's a big pain. That's why you have to charge up front.

2:01Is that you could just charge a very small monthly fee for the tutors on an ongoing basis to per per student. So it's like charge whatever you want. We charge $10 a month per student. That way it's like it's a it's a no-brainer. And then I mean I'm saying $10 as a placeholder. You could charge $50 or charge $100 or whatever you want. That way you can have some up front cash and some ongoing cash. And then they can just let you know. But you should know how many they have based on the people that you've sent to them.

2:29Alex Okay. >> Right? That way you have a little bit more continuity in the business. I know that they're going to you know they do some tutoring and then they fall off because they're students or whatever. But at least you can still have you'll still get some long tail there. So I would probably consider extending the amount of time that you can charge up front. So I had a similar business model cuz I did this with gyms. I sold for six weeks. So I I kept the first six weeks up front. And then they got the membership on the back end. So I'm familiar with the model. Um so I do think you can push from two to four. Um the the big thing is being able to space it out. So it's like I can charge up front for four weeks and if you want to make money you're welcome to and I can also spread that extra two weeks over X period of time. Right? Are you collecting anything from the tutors or no?

3:10Yeah, collect from tutors. The Well the the customers pay, right? >> pays and pays us. Okay, what does the tutor pay? Uh they pay the effort. No, right. So no you don't collect anything from the tutors. That's my point. So you could also charge that it's a two-sided marketplace. You can charge both people. You could charge them a membership fee to be able to have the opportunity to get these people from you. And those will probably be very sticky. And so if you're trying to increase the enterprise value of the business what you have to shift your perspective from if I'm talking too fast stop me is that the tutors are your customers.

3:45Because they're the ones who are permanent. The students flow in and out. Right? And so the idea is okay, we attract these tutors and we can have an annual fee or a startup fee bills annually for them to be on the platform. We still take our two weeks our four weeks up front but then this becomes the base of tutors that we continue to expand and grow and that'll drop all to the bottom line cuz right now it doesn't cost you anything, right? Yeah. So those would be two things that I do from a pricing perspective that would probably make you more money. Now in terms of the traffic um I'll say it feels unlikely that you're capped with $200,000 a year.

4:23Alex So the question is who is doing your SEO? Me. Okay. So then might just be that your skill set for SEO is capped. And that you need to get better at SEO so you can do more of it. Are there more people that you can bring on to like rank for more keywords that are relevant? Yeah, I think so. Okay. So this would definitely be a One moment.

4:49Alex Dramatic effect. More. So it'd be a more it'd be a more solution. I know this sounds silly but like sometimes it's just like that's really what it comes down to. It's you're like I don't know how we can do any more. You're doing 200,000 a year there's absolutely more traffic that's out there. I do think the pricing model you could adjust. We could do those two things. Change increase the up front two to four weeks. Add in some billing for the tutors. I would do it as an annual fee. Make it small 99 maybe you know 199. If people are coming on the platform do you have to validate them like uh make sure that they're legit to you know to be a tutor?

5:22Alex Not much because I I want to attract as much as possible. So we just take a look at it. >> Yeah. Just try. >> So one of the one of the ways you can consider this is that you can charge them for the whatever their up front fee is and then if you want you can credit it back in the first couple people but that way again you can get them on the on the membership if you need to soften the offer. Does that make sense? Yes. Okay. So those are the two pricing changes and then in terms of traffic it's who do you need to hire or what AI can you start using better to start spinning out more articles that will rank for the traffic. I do think though that your business model lends itself really well to ads.

5:59Just running paid ads. Uh not much [clears throat] because negative ROI. I don't know why. The paid ads. What do you make per student? Uh normally 200. Mhm. Uh $38 CAC. Okay. I mean that's five to one.

6:22And if you double it it'd be 400 with $40 it's 10 to one. And if you add it back in in terms of some membership that you're charging for each of them on an ongoing basis it's So why is that bad? Uh what do you mean? Sorry. So no you're good you're fine you're good. Why can't like you run ads you have $38 CAC why not do a ton more of that?

6:47Yeah, I should do more after that. Yeah. Yeah, yeah. Okay, cool. So run more ads with the $38 CAC. Go from 200 to 400. Add in the the annual pricing piece and I think you'll probably be well on your way. Thank you. Yeah, yeah. 100%. Thank you so much. If you're a business owner and you are not growing as fast as you'd like I'd like to give you a free gift. So my team and I put together the $100 scaling road map which is basically 200 hours of us looking over all the portfolio companies we've had and what stages of growth they went through and more importantly where they got stuck and how they got past it. And so we broke it in these 10 stages and we made this little kind of quiz thing where if you put in your business information it'll tell you where you're at and the most important part for you what to do for each of function of the business across product marketing sales customer success recruiting IT human resources and finance. And so no matter what you're struggling with someone else has already struggled with it and solved it. And so I'd like to give you this thing absolutely free. You can go to acquisition.com/roadmap plug in your business information and if you want us to actually help you deconstruct the business and you're trying to scale we'd love to help you out on the thank you page you can book a call with my team and we will look at the business see if we can help and if we can we'll invite you out to Vegas and we'll do this in person live.