WEBVTT 00:00:00.000 --> 00:00:10.880 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. 00:00:11.440 --> 00:00:14.400 Uh, average revenue per customer is $450 00:00:14.400 --> 00:00:17.565 a month. Okay. Yeah. Subscription based company. Yeah. 00:00:18.045 --> 00:00:19.965 So right price. Yeah. We're at 20,000,000 00:00:20.045 --> 00:00:22.525 Yeah. Bucks in revenue. And Notice. 00:00:22.685 --> 00:00:30.440 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 00:00:30.440 --> 00:00:32.520 bucks of revenue in about three years. Okay. 00:00:33.000 --> 00:00:38.600 So the question we're asking ourselves is we're in an industry where AI is very disruptive. 00:00:39.480 --> 00:00:43.000 Every day that goes by, you know, it's constantly degrading and decaying our our product. 00:00:44.015 --> 00:00:47.295 And at the same time, we have kind of this one 00:00:47.535 --> 00:00:57.710 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, 00:00:57.790 --> 00:01:03.790 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. 00:01:03.870 --> 00:01:08.350 Yeah. What do you mean by that? Churn is going up? Churn is slightly ticking up. But 00:01:09.985 --> 00:01:16.465 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, 00:01:16.865 --> 00:01:25.340 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. 00:01:26.860 --> 00:01:54.240 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 00:01:54.720 --> 00:02:00.640 I wanted this long rant the other day about this particular topic, which is solving problems that don't exist. Okay. 00:02:01.600 --> 00:02:02.160 So 00:02:02.960 --> 00:02:05.680 like, you have a narrative. You have a story around 00:02:06.005 --> 00:02:12.565 AI is decaying the business. Mhmm. But all I hear is that you have customers and your job just got way easier. 00:02:13.045 --> 00:02:13.765 That's fine. 00:02:15.685 --> 00:02:27.310 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, 00:02:28.030 --> 00:02:38.765 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 00:02:39.645 --> 00:02:49.085 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? 00:02:50.510 --> 00:02:54.590 So you said there's two paths. So one is, you know, change the product around. 00:02:54.750 --> 00:03:00.030 My opinion, I wouldn't that's probably wouldn't be where I'm focused unless I had some 00:03:00.510 --> 00:03:03.470 business metric that was way off that that I'm not seeing. 00:03:04.305 --> 00:03:08.705 I would be doubling down on the acquisition side. What's your l t what's your number of months average tech? 00:03:09.505 --> 00:03:17.025 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 00:03:18.210 --> 00:03:19.330 was 38 00:03:19.410 --> 00:03:29.010 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. 00:03:29.490 --> 00:03:29.810 So, 00:03:30.385 --> 00:03:34.065 yeah, I think you just doubled down on inbound. So paid ads? 00:03:34.225 --> 00:03:39.425 Paid ads. Yeah. Yeah. And I would just see if you get them to prepay for the quarter so you can offset CAC. Mhmm. 00:03:40.065 --> 00:03:44.385 Okay. Um, on that subject, if you don't mind, uh, in terms of prepaying for the quarter, 00:03:45.040 --> 00:03:51.040 you know, again, our customers are pretty price sensitive. Yeah. There's people that are cheaper than us, obviously, if you've seen before. 00:03:51.840 --> 00:03:56.320 My fear is the amount of churn that will generate some you know, we we bill 90% 00:03:56.320 --> 00:04:03.265 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, 00:04:03.985 --> 00:04:11.105 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? 00:04:12.230 --> 00:04:19.590 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? 00:04:19.750 --> 00:04:20.630 Sorry? 00:04:22.310 --> 00:04:28.695 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, 00:04:29.015 --> 00:04:32.855 what will go up is CAC because you'll have media spend in addition to the sales commission. 00:04:33.095 --> 00:04:39.095 And so to offset that from a cash flow or how cash flow positive are you right now? Uh, so we did 3.6 00:04:39.095 --> 00:04:42.295 in EBITDA last year generating about Yeah. 00:04:42.910 --> 00:04:44.110 That's lowish. 00:04:44.110 --> 00:04:47.950 It's lowish. Yeah. Yeah. Curious people. With We're heavy on people. 00:04:48.270 --> 00:04:49.310 Dude, AI. 00:04:49.550 --> 00:04:50.990 I know. I know. 00:04:51.790 --> 00:04:57.790 Big thing. I know. It's like you're worried about them doing it. You're not even doing it. Correct. Right? Right. 00:04:58.815 --> 00:05:05.455 Right. Yeah. So, like, um, okay. So this is what I would actually do. Mhmm. I would probably spend the next six months 00:05:05.695 --> 00:05:09.455 reorganizing the workflow, probably reduce head count by 50% 00:05:09.535 --> 00:05:16.040 using AI workflows in order to actually do the same thing, increase the margin from 3.6 to, like, seven, 00:05:16.280 --> 00:05:26.120 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. 00:05:27.665 --> 00:05:29.425 That's how I'd actually fix it. 00:05:29.825 --> 00:05:30.545 Okay. 00:05:30.785 --> 00:06:15.100 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. 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