Warum das Agenturmodell an seine Grenzen stößt

0:00Yes. >> Okay. Yes. >> So I will I will speak pretty definitively which I I rarely do um about like this model is better than that model. >> Agencies are exceptionally easy to get to and you know caveat caveat for the internet trolls of the world right like exceptionally easy to get to a million three million even$10 million a year in almost any version of the model.

0:25Beyond that it becomes exceptionally difficult um because you have human capital so it becomes really it's more and more difficult to attract you know talent to do higher level work um and typically the businesses that go from you know 0 to 10 million they're servicing SMBs and VSNBs so very small business owners and small business owners if you take one of the the way that I like to think about any industry if I want to get into is I look at what the people who are the biggest in that industry are doing and think okay what's different about what they're doing versus what everyone else is doing and the biggest agencies in the world service the Fortune And so I take that as the natural extreme of like what is the best version of this business is that you deal with businesses that always pay their bills.

1:02They never turn. They sign five-year contracts at 5 million a year and they're good for it. And so the process of agency scaling is very much scaling the avatar and you basically have to just keep earning your way up which you're you already on the right track um of how can I get an avatar that actually can keep their word. And once you get to there, number one, and number two, you'll have a telltale sign of like, am I dealing with an avatar that's too low if you want to start doing more of their business for them. And so if they're like, I can't close a door, right? Or like you're like, maybe I'll do my sales for them. No, you have to deal with a business who knows how to sell because your services are not I will do acquisition for you. It is I will do this. I will do this. I'll do lead.

1:43Right. Exactly. And so it really comes down to who's the perfect avatar for only this very narrow service that I have I have tremendous margins on. And so that's where we get really clear on like well if they actually like I've been selling people who have over 10 people headcount but if they have over 50 my turn is like 1%. >> Yeah. >> And so it's like I really should just build that and not have all of this. Now what happens is we we always incur debt. So it's not like there's something wrong. Every business incurs debt when you start 100%. You either incur talent debt, tech debt, financial debt. You incur debt. You want to incur the debt that's the easiest to pay back, right?

2:20And so right now, and you can also incur reputational debt, like there's debt. Um you're you're selling some people that you know you shouldn't sell so you can pay the bills. Fine. I'm not going to get on an ethical, you know, whatever with you. Um but the sooner you can draw the line of saying, I want to like if you told your team, we're How many sales a month do you do sales velocity? Three, four. Okay, I'm okay with us going to one deal a month. And where this gets more interesting is that when you get that correct, truly correct avatar, the price elasticity uh changes. And so all of a sudden, it's like if I actually were to price to my correct avatar, I might be able to charge two times as much. And by charging two times as much, I might 5x my profit. And by doing that, I'm actually more than happy to have my quote revenue growth rate be slower than what it was before when I had these people. the amount of operational drag that you incur also like team morale of like I just onboard this guy and he's already turned out like it just feels like such a pain whereas if they know that they're going to be creating long-term relationships with the customers you will get a stickier business that's more fun to run and way more profitable so part of this is like a lot of entrepreneur a lot of the correct moves in entrepreneurship are counterintuitive because all the intuitive ones you've already done you do those naturally you wouldn't you don't think about it because all the things that are intuitive you already did it and they already worked where you get stuck is the counterintuitive solutions are the ones where you're like, "Wait, so for me to grow, I need to sell fewer people and have higher qualifications." It's hard to do. That's why most people don't do it. It's also why most people don't make money.