We do, uh, we're WaaS, so website as a service, um, based company. So we build websites, do digital marketing services, that kind of stuff. Uh, we cater to small, medium businesses, small businesses.
Uh, average revenue per customer is $450
a month. Okay. Yeah. Subscription based company. Yeah.
So right price. Yeah. We're at 20,000,000
Yeah. Bucks in revenue. And Notice.
Example. Right price. Really small. You price it super low, and it works. Go ahead. Go ahead. And we wanna get to $8,080,000,000
bucks of revenue in about three years. Okay.
So the question we're asking ourselves is we're in an industry where AI is very disruptive.
Every day that goes by, you know, it's constantly degrading and decaying our our product.
And at the same time, we have kind of this one
channel risk that that that we're living with. All of our sales, a 100% of our growth has been done through outbound cold calling. Love it. Yeah. It's great. Um,
but, again, cold calling is becoming harder and harder, the industry is decaying. So we're we're constantly we're trying to figure out industry is decaying.
Yeah. What do you mean by that? Churn is going up? Churn is slightly ticking up. But
at the end of the day, you know, AI is making it easier and easier for our customers to be able to build their own websites. Well,
yeah, I know. With the type of customer we deal with, they're not usually super sophisticated. So it we do have time. Found out about ChatGibuta. So There go.
Yeah. Exactly. So we we have time. But Some of you guys still fax, so I think you got time. Yeah. But this is the question. Right? So do we double down on on on marketing and create, like, an inbound channel and really invest hard into that, Or do we do, um, do we try to innovate on the product and figure out what else they need and, like, build a revenue engine? Uh, right now, we're kinda we're doing we're trying to do both, but it's obviously limiting. So this is this is really, really good. I love that you asked this. So
I wanted this long rant the other day about this particular topic, which is solving problems that don't exist. Okay.
So
like, you have a narrative. You have a story around
AI is decaying the business. Mhmm. But all I hear is that you have customers and your job just got way easier.
That's fine.
So, you know, I mean, like, if if you were like, our churn is escalating by 10% per month, I'd be like, we have a problem. We need to change something. Mhmm. But if it's not really showing up in any meaningful way in terms of the business itself,
I think there's plenty of people who will just be super laggards on this and are not gonna be replet vibe coding. They never bought your shit to begin with. Yeah. Like, the person who is super into AI right now
wasn't hiring WAAS anyways. They built their own website. Mhmm. Before AI made it quote easy. Right? Like because, I mean, to be fair, website building software, not that complicated. No. Right?
So you said there's two paths. So one is, you know, change the product around.
My opinion, I wouldn't that's probably wouldn't be where I'm focused unless I had some
business metric that was way off that that I'm not seeing.
I would be doubling down on the acquisition side. What's your l t what's your number of months average tech?
So it's twenty nine months. Yeah. Yeah. Yeah. That's the gain. It's it's usually yeah. It's 30 to 40. It's that's the the highest I've seen
was 38
Mhmm. For this type of business. So, like, you're right. You're right in the in the sweet spot there. You're a little higher priced. I think they were $2.99. It's like Yeah. It all works out in the same, you know, um, same time.
So,
yeah, I think you just doubled down on inbound. So paid ads?
Paid ads. Yeah. Yeah. And I would just see if you get them to prepay for the quarter so you can offset CAC. Mhmm.
Okay. Um, on that subject, if you don't mind, uh, in terms of prepaying for the quarter,
you know, again, our customers are pretty price sensitive. Yeah. There's people that are cheaper than us, obviously, if you've seen before.
My fear is the amount of churn that will generate some you know, we we bill 90%
of our customers on credit cards. Yeah. And we hold on to 10% that pay us through, like, pad and through checks and that kind of shit. It's it's awful. But,
you know, we're going to experience churn if we're like, hey. You need to, you know, prepay us up up front. You'd still We wouldn't churn. We just close fewer. Right?
Close fewer? Absolutely. And I think customers that are with us would leave us. Why would the people who are with you leave you for how you treat new customers?
Sorry?
People that are with us would leave us. Think you change your billing process for existing customers. Gotcha. I'm saying if you're doubling down on inbound,
what will go up is CAC because you'll have media spend in addition to the sales commission.
And so to offset that from a cash flow or how cash flow positive are you right now? Uh, so we did 3.6
in EBITDA last year generating about Yeah.
That's lowish.
It's lowish. Yeah. Yeah. Curious people. With We're heavy on people.
Dude, AI.
I know. I know.
Big thing. I know. It's like you're worried about them doing it. You're not even doing it. Correct. Right? Right.
Right. Yeah. So, like, um, okay. So this is what I would actually do. Mhmm. I would probably spend the next six months
reorganizing the workflow, probably reduce head count by 50%
using AI workflows in order to actually do the same thing, increase the margin from 3.6 to, like, seven,
um, or more with the added cash flow. You wouldn't have to change the price on the front end. You'd be willing to go negative for a quarter in the acquisition knowing you're gonna get 29 on the back.
That's how I'd actually fix it.
Okay.
Makes sense. It's alright. Cool. Yeah. Yeah. Thanks, man. 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 $100,000,000 scaling road map, which is basically two hundred 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 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 go to acquisition.com/roadmap,
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