Why Mid-Priced Agency Offers Get Crushed

I sell basically complete digital marketing services to service based businesses in Australia. I moved >> SMBs? >> Uh like cleaning companies, stuff like that. Cleaning, yard work, and >> Average revenue for them? >> revenue per company is anywhere between half a million to 2.5. >> Tough. >> Uh they're the ones I sell.

Uh I pivoted the company's gone from zero to 500k in the last four four months. >> Good. >> I pivoted from fitness. Uh just happened, so it worked out well. Uh so they're all being wound down, getting other people operate. I'd like to ideally get to eight figures. Uh in terms of what's stopping me, I

Well, I spent the whole 28 hours here going through every framework I could to figure out what's wrong. >> Yeah. >> I just want to figure out >> Can I tell you what it is? >> Good. I also want to figure out where would be Besides like getting operations and moving out to other people and

making sure I'm not involved in delivery, where would be the best use of my time? >> three, turn will suck. >> Yep. >> Yeah. That's what's going to happen. >> Yep. >> So, you're four four months in, so you're it's it's brand new and you haven't seen all the that's about to happen. So,

what's going to happen is because you're because you're servicing SMBs, >> Yep. >> their volatility will translate over to your volatility. >> Mhm. >> And independent of how well you do, they will start churning. Um and you have probably mastered the sales function, which is why you're growing quickly. >> Yep. >> Um but you also will have like CAC will

never be cheaper than it is today. >> Yeah. CAC will >> So, CAC will always go up >> Mhm. >> and churn is going to start eating into the business because SMBs suck. And so, we What's going to happen is that your margins will continue to compress and compress and compress and you'll have to spend more and more. CAC