Die Schattenseite von High Ticket Angeboten

0:00We help uh home service businesses stuck between 100K and their first million a year to reach their first million a year with a three-step uh client acquisition formula called TNT. But before that, for 5 years uh we were a WAS, so website as a service. Um we sold 2.1 million over the last year. Net profit is like 950K. Um we would like to reach 500K a a month collected for Quebec market and have less complexity.

0:27Um okay, situation here. So we have like 700 active client on the whole old system, which was a a WAS. Uh $200 a month thing. It was super cool, but super frustrating. The team was started started to feel like robots. So we got emotional and we're like, "Okay, let's move to high ticket." So that's what happened 4 months ago. Uh we started high ticket. We're like, "Woohoo, cash flow's here now." Um but the thing is I realized yesterday I actually that my LTV to CAC is now very low.

0:56Um because my clients are home service businesses. I'm in Quebec. We can only run ads for like 4 months for them because there's uh there's snow everywhere for like seven six seven months a year. >> The other thing is once the ads work, they stop the ads. Yeah. Because they are limited by capacity. Um so what's stopping me to grow? What do you want to do with this business? Uh what we wanted to do actually is um well, we want to Cuz the first business sounded like a great business.

1:26Right. I know. >> [laughter] >> Yeah. The thing is we wanted to create a real transformation. And I think that was >> Can I tell you a secret? Yeah. Very small business owners will never build a stable business because they are not stable. Mhm. So it's nothing to do with you. Okay. And this took me a very long time to figure out and I kept trying to bang my head against the wall being like, "How do I fix turn? How do I fix retention?"

1:53>> Like uh Shopify has best in class retention for VSMBs, so very small business owners, prosumers if you will. And they keep 50% per year. What? That's best in class, $100 company. And so I have only seen one model work with small business owners and it's ultra low priced and you build the entire business around uh having high gross margins but low prices. >> Right. So the WAS. Yes. That was the good thing. Because I feel like I'm trying to push a high ticket.

2:22>> happened is you just got impatient. Yeah. You had 700 customers paying you $200 a month. You're making 140 a month. Probably good margins. Yeah. It was nice. And you're like, "I don't want to Right." And so I think honestly like, you know, the best thing that would have happened would have been that you didn't take the last 4 months and build this other thing and you would have just kept doubling down and taking all that extra energy and said, "What were you doing in sales per month with the WAS?" I just like saying WAS. The WAS were onboarding like 40 to 50 new clients a month. What's turn?

2:50Um was We were keeping like 85% of people year after year. Good business. Right. The thing is Super high gross margins. >> Yeah. 85% annual revenue retention. >> But when we started high ticket, we're like, "Woo, cash flow's insane now." Like on month one, but then maybe not later. Mhm. That's interesting. Interesting. Yeah, yeah.

3:19Pick. Um well, yeah, the WAS for sure. >> [laughter] >> Sorry. I think it Yeah. That's for sure the WAS and way better equity there, too. Yeah. Don't know why we changed. I was uh people were feeling like >> [laughter] >> The people were feeling like robots and there was no real transformation, but I think I need to go over that and treat it like it it's a business and it's not like an emotional and personal thing, right?

3:52Well, you're certainly not making transmissions now. They leave in 4 months. Yeah. So here's Okay. So instead of thinking about transformations, just think So Elon has this really good framework on this. He said either we can help a a very small amount of people a ton or we can help a lot of people a little bit. And he has taken the perspective of helping a lot of people a little bit. And so I think with this business like they have demonstrated with their dollars that they value what you give them. They don't cancel it. They like it. When you give them the other thing, you think you're selling you're selling out of your own wallet.

4:26You're saying, "I wouldn't want this. I would want this." And then you're saying, "They're not like me." Mhm. Duh. And we can still like sell the high ticket to the nuggets in the WAS. Yeah, that would be the thing. You know what'd be even cooler? Not doing that. Okay, not even? No, >> [laughter] >> like it Hear me out. So So No, this is this is like uh I I will I will keep the entertainment for for entertainment purposes, but um I want you to I want you to really think about this.

4:55So Okay. >> [laughter] >> There is going to be I didn't explain what these other frameworks, but crash course. So with every one of the implementations that you do, you have limited resources, time, effort, money, right? And so strategy is prioritization. It means how do we take these limited resources and allocate them against unlimited options? And so if you're not sure, it's because you're not doing the job of the entrepreneur. There is always only one thing that is the most important in the business. And if you can't decide, that's on you. Okay. And so you have the stuff You've got your team, you've got your money, you've got whatever. And so instead of being like, "Man, uh we should start this Ascension thing." Cuz you probably have really good LTV to CAC on this other business, the WAS business. Oh, yeah, yeah, this one, yeah. Yeah. Yeah, yeah. Right. And so instead of saying, "Hey, let's start this whole other business, right? Cuz it's a totally different service, totally different price point, whatever, right?" Just say like, "What if we took all of that energy of starting this other business and just said, 'How do we get to 200 customers a month?'" True.

5:55Yeah. >> That would quadruple the business. Yeah. And if you did that, you'd be at 500,000 a month in 6 months. That's right. And it would be really good 500,000 a month. Amazing. That helps. Cool. Thank you. No, you bet. 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 roadmap, 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 into 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 functions 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 just book a call with my team and we will look at your 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.