Latest / AI for Founders with Ryan Estes / Built a $2M SaaS for contractors from his Mom's room
Transcript
- 0:00You ever watch a non tech industry get quietly eaten alive
- 0:03by a kid with a phone and 0 patience?
- 0:05Kai Stone went from post college degenerate mode to building
- 0:09stone systems, A $297.00 a month copy paste software stack that
- 0:14helps contractors run their whole business from their phone.
- 0:17Because most contractors aren't at a laptop.
- 0:19Some don't even own one. Here's the tension.
- 0:22Marketing agencies lose either way.
- 0:25If they don't get contractors leads, they get fired.
- 0:27And if they get them too many leads, they still get fired
- 0:30because the calendar explodes. Kai, flip the model.
- 0:33Sell the baseline software first, make it sticky, then
- 0:37upsell services later after. Trust the founder.
- 0:40Lesson here is don't build better tech.
- 0:43Build tech that matches how your customer actually lives in a
- 0:46novel use cases. If your buyers live in text
- 0:49messages, build your products so their phone bugs becomes the
- 0:52dopamine loop that keeps them pain.
- 0:54Now here's a Dee question. What part of your life or
- 0:57business are you avoiding fixing because failing at it would feel
- 1:00like failing at you? Welcome to AI for founders.
- 1:04I'm Ryan Estes. In this episode, you'll learn
- 1:06Kai's meet them where they are, product strategy, his scrappy
- 1:10customer acquisition playbook and how he thinks about churn
- 1:13retention and scaling. This is for founders selling to
- 1:16blue collar offline or non tech markets and anyone trying to
- 1:20build sticky sass without a giant team.
- 1:23And if you're building in public, building in chaos, or
- 1:26building with mild delusion, you belong on AI for
- 1:29foundersnewsletter@aiforfounders.co. We send one e-mail that feels
- 1:34like a cheat code and a slap on the back at the same time.
- 1:37So go subscribe and next time you're spiraling at 11:47 PM, at
- 1:41least spiral with the plan. That's the newsletter at AI for
- 1:44founders.co. And if this show ever made you
- 1:47open Notes app like a maniac, leave a review and tell the
- 1:50Internet what line ruined your piece.
- 1:52Founders, here's a quick one. If your company is legit but
- 1:54your pipeline feels like it's running on vibes and caffeine,
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- 2:14You show up, tell the story, explain the problem you solve,
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- 2:37more hustle, go to kitcaster.com and get booked on podcast today.
- 2:41That's Kitcaster by MO Burst. Hi, welcome to the show.
- 3:00Thank you so much for joining me.
- 3:02I appreciate you having me, man. Thank you so much, Ryan.
- 3:04Absolutely. My pleasure.
- 3:05I know it's early there. You're calling from Hawaii, so
- 3:07it's about 7:00 AM. So I appreciate you waking up
- 3:10early and jumping on this this podcast.
- 3:14I got you Monster, Monster Energy and Coffee man.
- 3:16It's a lifesaver. Indeed.
- 3:19OK, so we've gotten to know each other a little bit over the last
- 3:22couple of weeks and I got to say, man, I am super impressed.
- 3:25I know folks are going to love this podcast because what you
- 3:28built is extraordinary. A couple of reasons why I like
- 3:30it so much. One, you're bringing tech to a
- 3:34place that's kind of notorious non tech.
- 3:36Not only that, but you're meeting your customer where
- 3:39they're at. And not only that, but you,
- 3:44you've had just like an absolutely explosive growth
- 3:47trajectory. And honestly, you're a sales dog
- 3:50with so you're a a man after built after the image of my own
- 3:54heart, I would like to say. So give us an introduction to
- 3:58Stone Systems and basically the software and tools you've
- 4:01created. 100% So with the software, basically we serve
- 4:05contractors and we just give them a software that makes it
- 4:07easier for them to run their business.
- 4:08So websites, AI automations, we help them get customers to the
- 4:12Google page. Everything we do is like super
- 4:14basic, like any founder, any tech guy would look at what we
- 4:17do and just say like, Oh my God, like this would take me like 2
- 4:19hours to like figure out, right? But I just had a buddy who was a
- 4:23contractor, really good friend of mine, and he just didn't, his
- 4:26website didn't work. Like he had no AI automation
- 4:28tax, he had no system for getting Google reviews.
- 4:30He had no AI in his business at all.
- 4:33And then I saw my mom, I helped her with her with her Airbnb
- 4:35business and she had no systems, no automations, no AI.
- 4:38And like we just, I implemented the simplest things in both
- 4:41their businesses and it completely changed how they did
- 4:43business. And it just saved them so much
- 4:45time and energy. And I was like, wow, this is so
- 4:47simple. What if I just copy pasted this
- 4:50and just kind of like really refine the system and then just
- 4:52sold it to as many contractors as humanly possible and get them
- 4:55using the system every single day to run their business.
- 4:58And once you can be sticky like that and have them kind of rely
- 5:01on your like app, then they just never stop paying you,
- 5:03especially when you're not asking them to pay you thousands
- 5:05of dollars a month, right? So that was pretty much the
- 5:08whole mindset. And yeah, there's not much more
- 5:11to it, man. I just, I saw the market and
- 5:13everyone, like everyone who was marketing to contractors was
- 5:16trying to get them to spend $1500 minimum a month.
- 5:19So what we did is we came in and severely undercut the market at
- 5:22$297.00 a month. But what we did was we instead
- 5:26of doing a service, we just had a copy paste software.
- 5:28And then what we did was we have the service on the back end and
- 5:31it's a lot easier to get someone to pay you once they paid you
- 5:33once, right? It's a, it's a lot easier to get
- 5:35someone to pay you thousands of dollars when they've already
- 5:37paid you 2 or 300 bucks. So we basically just kind of
- 5:40took what the market was already doing, but we just reversed the
- 5:42order. We kind of built trust and
- 5:44authority. First we got contractors to kind
- 5:46of know, like and trust us. And then once they're set up, we
- 5:48said, hey, Mr. Contractor, we also have all this other stuff.
- 5:52Do you want to buy that? And a lot of them will say yes.
- 5:54So that's pretty much the premise of the businessman.
- 5:57And that's, I think that's why it's going so well.
- 6:00It's fantastic, you know, and I'm always looking for
- 6:02opportunities to get as close to people's revenue as possible
- 6:05because that's always the stickiest and, you know, the
- 6:08services you're providing. So 1, you create beautiful
- 6:10websites, 2, there's very easy lead generation.
- 6:15So if somebody's interested and wants a free estimate, they put
- 6:17in their name, they put in their phone number, their e-mail, and
- 6:20then there's automatic follow-ups.
- 6:22Is that correct? Yep.
- 6:23And then also a system for getting Google reviews.
- 6:26And then we're also jumping into invoicing and calendars booking
- 6:28as well, so they can take payments directly with their app
- 6:31and then also just do invoicing with the app as well and then
- 6:34schedule all their appointments in the app as well.
- 6:36So that's we're trying to, like you said, we're trying to get to
- 6:38be as sticky as humanly possible.
- 6:40Yeah. And and you know, a lot of for B
- 6:43to B folks like they're kind of the assumption is, is that
- 6:45people are sitting at their desk or they're at their laptop at
- 6:48the cafe or whatever. They're running through emails.
- 6:50That's where a lot of business is done.
- 6:52But for contractors, they're in the field, so you see them all
- 6:55the time. They're, I mean, the, the, their
- 6:57phones are glued to their head, you know, so this is actually
- 7:01all through text messaging. So it's basically delivering
- 7:03them new customers, new prospects, opportunities for
- 7:06reviews, you know, repeat business straight from their
- 7:09phone. And I, I think that's like a key
- 7:11part of it too, because a lot of times where I, I feel like
- 7:14people are kind of passed by in technology, it's because it's,
- 7:18they're the, the platforms aren't utilizing the tools that
- 7:21are actually in their tool belt. A hundred 100,000% I knew that
- 7:25super early on because I saw my buddy who is a contractor and I
- 7:28saw the way he ran his business and I was just like, holy shit.
- 7:31Like this guy's never on his computer.
- 7:32So everything that we did was based around how can we get them
- 7:35to use it on their phone? And I forgot what study I used,
- 7:38but there's some, there's some study about like addiction and
- 7:40like dopamine reward. I think it's called like the the
- 7:43buzzing phone study or something like that.
- 7:44But everything we do is set up to have that contractors phone
- 7:47buzz. So every single time they get a
- 7:49new review, new lead from Stone Systems or sorry, new review
- 7:52from Stone Systems, every time they get a lead, new lead from
- 7:54Stone Systems, new appointment booked by Stone System.
- 7:57So it's like every single time there's an opportunity to get
- 7:59that phone to Buzz, we try to like get it to Buzz and send a
- 8:02notification right to their phone.
- 8:03We barely even e-mail these guys and we make sure they can do
- 8:06everything from their phone as well because like you said, like
- 8:08these guys don't check emails. Some of these dudes don't even
- 8:11have a computer, so you're 100% right like that.
- 8:13That's a big part of what we focus on on the back end is how
- 8:16can we get everything to be on their phone?
- 8:17Super like very very key. Very key.
- 8:20Yeah. And, and talk about a little bit
- 8:22the challenges you know, of, of working with, with contractors.
- 8:27It seems like there there could be a capacity problem where if
- 8:30you're like pouring gasoline on the fire, maybe they want to
- 8:32bring the fire down a little bit.
- 8:33What are some of the challenges? So it's so funny you just said
- 8:36that. So most marketing agencies have
- 8:38that exact problem. So if you're a traditional
- 8:39marketing agency for a contractor, right?
- 8:41Like let's, let's, let's, let's think about that.
- 8:43If you do poorly, they're going to fire you because you did a
- 8:46shit job. And they're not, they're not
- 8:47getting any jobs, right? And then they're just spending
- 8:49all this money on you. Let's say you do a really good
- 8:51job and then you overload their calendar.
- 8:53They're still going to fire you because they can't handle the
- 8:55work. So that's why we have the
- 8:57baseline software, the website, the AI that they never, they
- 8:59never stop paying for. And then we all, we always have
- 9:01the few of the fire to add later on, which is marketing.
- 9:04So the marketing we can turn on and off.
- 9:05But that base level of software, that base recurring revenue
- 9:08always stays the same. They can never stop paying that.
- 9:12But as far as the challenges, man, I mean, you could probably
- 9:14guess like contractors or a certain type of person, like you
- 9:17have to have extremely like very thick skin.
- 9:20If anyone's ever been in a Call of Duty, like Modern Warfare
- 9:22lobby, it's very similar to being in that talking to
- 9:25contractors. It's just a free for all man.
- 9:27They're high testosterone, freaking alpha male individuals.
- 9:30And it's, it's at this point, it's funny.
- 9:32But when I first started, I really had to get used to it.
- 9:34I was like, wow, this guy's really telling me to go jump
- 9:36like off a building and he doesn't give a shit about me.
- 9:38Like, it's actually the stuff that I've heard is at this
- 9:42point, it's funny. But at the beginning I was like,
- 9:43wow, man, this is this is hurtful.
- 9:46Yeah. Yeah, you know, I, all my
- 9:48friends are working the trades, you know, and one thing that's I
- 9:52I've noticed is, is that they're Craftsman, you know, whether my
- 9:56best friend works in tile, another my buddy works in
- 9:59hardwood floors. And so to them it, it's not like
- 10:03they're running a business, rather it's kind of a lifestyle
- 10:06type business. We might say, you know, because
- 10:08I'll, I'll come to them with kind of be like, oh dude, you
- 10:11need, you got 1 truck. We get let's get 3 trucks.
- 10:13Like let's get some crews like let's go.
- 10:14And they're like, no, no, no, no, they they really don't want
- 10:17that. Do you?
- 10:18Do you run into that a little bit as well when you're working
- 10:20with contractors? We do, we do.
- 10:22And that's still OK because that's where we just say, hey,
- 10:24all right, this is going to be a guy who's just going to be on
- 10:25the $297.00 plan. We'll just keep him there and
- 10:28we'll just, you know, we'll, we'll do the bare minimum that
- 10:30need that is needed to upkeep him.
- 10:32And with the 297, like like 90% of the work is done on the on
- 10:35boarding, right? And then past that, it's pretty
- 10:38much on autopilot. So that's that's why it's so
- 10:40great. But again, like you said in the
- 10:42beginning, you have to just meet them where they're at.
- 10:43If it's that type of person, there's no reason to try to push
- 10:46them to do more than they're comfortable with, right?
- 10:48That being said, I would say 70 or 80% of them are are actively
- 10:51still trying to grow their business for sure.
- 10:52But there are there are those 20% who just kind of want to
- 10:55chill. Yeah, they, they just want to
- 10:57make sure that they got their nine to five filled.
- 10:59But other than that, you know, let's get the links.
- 11:02Exactly. And, and usually those are,
- 11:04those are the older guys who are looking to retire and they're
- 11:06kind of just like, oh, this is a mom and pop business.
- 11:07We only do word of mouth. And those are actually the worst
- 11:10customers because they just they, they don't want to use
- 11:11technology and they're kind of just doing it because their wife
- 11:14told them to or something. So those guys usually aren't the
- 11:16best customers, but we still take them.
- 11:18Cool. So let's go back to the
- 11:20inception. So you're what are you doing
- 11:22before you begin stone systems? Yeah, like I said, I mean, dude,
- 11:26I graduated college. I was fucking just drinking and
- 11:28doing drugs like all day every day.
- 11:30It was so bad. Like just just being a complete
- 11:32degenerate. And you know, I'd like I would
- 11:35say my only real skill in life is being able to like take
- 11:37criticism well and be like self reflective.
- 11:40So I just kind of woke up one day and I'm just like, dude,
- 11:42like what are you doing? Like you're going down such a
- 11:44such a like what's going to happen if you keep doing this
- 11:47for five years? Like you're just going to have a
- 11:48shit unhappy life. So, you know, I knew my parents
- 11:51had an Airbnb business. So I was like, hey mom, like let
- 11:54me like run this thing. You know, I can, I can work a
- 11:56computer, I'm probably better than you.
- 11:58And she just let me do it. And it was a crazy risk on her
- 12:01part. And I ended up, you know,
- 12:02tripling their business in like 6 months.
- 12:05And I was like, holy shit, like I can do this business thing.
- 12:07And that's where I got the idea for the software was helping
- 12:10them my mom with like a simple website, automations and
- 12:13realizing that she just had no idea how to do it.
- 12:15And it's helping her so much. And it wasn't that hard for me
- 12:17to replicate and do. So after the Airbnb business, I
- 12:21just, I saw the software and I kind of was just like this is it
- 12:25like, I don't know what I'm going to do?
- 12:26But as soon as I saw it's called go high level, as soon as I saw
- 12:29it, I was just like, Oh my God. Like I can create some kind of a
- 12:32copy paste system and have people use this every single day
- 12:35the exact same way my mom did. And that's it, man.
- 12:38I just, I just jumped locked myself in my mom's room for two
- 12:41years. And here we are two, two and two
- 12:44years and some change later, and pretty much every single young
- 12:48successful person that I've ever met has gone through the same
- 12:50thing where they kind of just look at their life and they're
- 12:52like, dude, this is not going down a good path.
- 12:54And they decide to make a change.
- 12:55And they locked themselves in a room.
- 12:58They cut off. They cut off everyone.
- 12:59And they just grind and. And that's it.
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- 15:33Well, that's that's kind of the story of Charlie Parker.
- 15:36I mean, to put it in jazz context, it's exactly what
- 15:38happened to him. He showed up, you know, at some
- 15:40gig and he played so terribly. The drummer threw a cymbal at
- 15:43him. So he went to the woodshed.
- 15:45That's where that idea of the woodshed comes about, because he
- 15:48just went in there and just locked himself in in a room and
- 15:51played until he, you know, lost finger, lost feeling in his
- 15:55fingertips, you know, that's. What has to happen?
- 15:57Yeah, it it, it's an important moment that and let's talk about
- 16:00that moment, too. Where'd you go to college?
- 16:02Santa Barbara, UCSB. Nice, what did you study?
- 16:07Sociology. I was going to say I couldn't
- 16:08remember, dude, I didn't learn a single thing.
- 16:10College man, at college, college.
- 16:12Like I learned how. I learned how to drink and talk
- 16:13to girls. That's literally all I learned.
- 16:15And in college is just like, yeah, I don't want to shoot on
- 16:17college, but it is so unbelievably useless if you're
- 16:19trying to like, unless you're trying to be like a doctor or a
- 16:22dentist or like a lawyer or something where you need a
- 16:24certification. And even when I was in college,
- 16:26man, everything I learned was never in the classroom.
- 16:28I would just go home and YouTube it.
- 16:29And the same way that's how I learned everything about
- 16:31business, everything about software is all off YouTube.
- 16:34It's online education. It's it's all for free on, on
- 16:37YouTube. Like literally everything you
- 16:38need is on there. But yeah, Santa Barbara it was.
- 16:41It was a good time. You know, to that point though,
- 16:43I mean, you can actually get a Harvard education for free on
- 16:46YouTube, you know, so like the value does become in some of
- 16:50those relationships. I mean, I had a similar
- 16:52experience in college where, you know, I, I think I feel like the
- 16:55only thing I learned is how to like, pop a, a cap off of a beer
- 16:59bottle with a lighter. That's pretty cool, though.
- 17:01That's pretty cool. Hey, it came in handy.
- 17:04Yeah, but no, college, college doesn't, I mean like man, like
- 17:07they don't teach you anything about taxes.
- 17:08They don't they don't teach you about hiring.
- 17:09They don't teach like they don't teach you like they don't they
- 17:13don't even teach you kind of how to learn, I think.
- 17:15And, and that's a big one. And it, I just, I, I don't know,
- 17:19man, I think YouTube is so good because only you know what the
- 17:22actual issue you're struggling to learn is.
- 17:24Like you specifically, right? If you put 100 people in a room
- 17:27and you have a professor preaching and, and talking, each
- 17:29of those hundred people are going to have different
- 17:31questions. So the thing about YouTube is I
- 17:32can just go there and selfishly only ask the things that I'm
- 17:35confused about and I can just learn at such a faster rate
- 17:38because like my own private tutor and I can specifically
- 17:40cherry pick the information that I'm confused about.
- 17:43South YouTube is man, it's the best, it's the best education in
- 17:46the world. And I think young kids are
- 17:47becoming like more and more aware of that.
- 17:49I think like young, younger entrepreneurs, you know.
- 17:52But you seem like super ambitious though and aggressive
- 17:54like that. It was there just not a program
- 17:56in college that fit you. And you're like, well, I guess
- 17:58I'm treading water here for a few years or.
- 18:01Yeah, I mean, literally, I just, I don't know.
- 18:03Everyone was talking about what to do after college and they're
- 18:05they're what is that called? Apprenticeship and all that
- 18:09stuff. And I was like, dude, I just, I
- 18:11never applied for any of that shit.
- 18:12I just knew I wasn't. I don't know what I was going to
- 18:13do. I knew I just wasn't going to
- 18:14have a job. Like I had no clue.
- 18:17Like genuinely, it just didn't make sense.
- 18:19It just didn't make sense. It wasn't, it wasn't about like,
- 18:21you know, like I never thought I'd be.
- 18:23I wasn't sure if I was going to be an entrepreneur, what I was
- 18:25going to do. I just knew like, I wasn't going
- 18:26to be a doctor. I wasn't going to be a lawyer.
- 18:28And I sure as hell was not going back to school after, after the
- 18:30four year degree. I was over it.
- 18:32Fucking hated it. Yeah, the, the education side of
- 18:34it, not, not the partying. The partying was fun.
- 18:38Yeah. And I think it's also overlooked
- 18:40how kind of important that can be as well.
- 18:42You know, and, and I guess I just, I'm curious selfishly,
- 18:45because, you know, my daughter's a freshman in college, my son
- 18:4817, you know, he's a junior this year in high school.
- 18:51And so, you know, there's a lot of divergent paths, you know,
- 18:54because ultimately, yeah, like school just isn't for everybody.
- 18:57It. But there is such kind of a
- 18:59stigma that like, this is the way you need to go.
- 19:02I think there's also kind of like, you know, there's like a
- 19:05second adolescence really in adulthood now because, you know,
- 19:09one, just the world's so much more complex now.
- 19:13You know, it's not like what, you know, I lived like a a bum
- 19:16musician for five years after college because it was like
- 19:19Amanda, you don't need anything but like a fork and like a
- 19:22lighter, you know, But now you got to have your Wi-Fi, you got
- 19:26to have your devices, you got to have this and that and this and
- 19:28that. It seems like the the barrier of
- 19:30entry of just being a dirtbag is a little bit higher, you know,
- 19:33But you know, I think that's it. There's there's also a place.
- 19:37So what where I'm kind of getting at is, you know, you get
- 19:41out of college, kind of not sure what the next steps are.
- 19:44You know what you don't want to do, which I think can be a big
- 19:47informer and give you a lot of directions.
- 19:49Like I'm, no, I'm not doing these things.
- 19:51But you start like sounds like, you know, alcohol, drugs, having
- 19:54a good time. But of course that can go both
- 19:56ways. You know, partying does have its
- 19:58dark side. Do you feel like there was like
- 20:00a angst in you that was getting out or were you just like,
- 20:02enjoying yourself? No, no, I wasn't enjoying myself
- 20:05at all. And, and that's a really good
- 20:06point. I think college is really,
- 20:07really good for like the partying and stuff makes you
- 20:10very social and being social is very important in business.
- 20:12Being able to talk to people and hold a conversation and being
- 20:15comfortable in rooms, very important for business.
- 20:17And college taught me that for sure.
- 20:19But but no, it wasn't after like after college getting to the
- 20:22party and the drinking and all that.
- 20:23It wasn't like I was feeling good anymore because like that's
- 20:25what you do in college. That's not what you're doing
- 20:27after college. And back to what you said, like
- 20:30I'm also a big fan of being directionally correct as opposed
- 20:33to like pinpointing exactly when I what I want to do.
- 20:35So I think, you know, just knowing what I didn't want to do
- 20:38is important. And then just knowing I wanted
- 20:39to go somewhere in the direction of working for myself or doing
- 20:42my own thing. Like, I don't know, like how
- 20:44like you're just blind kind of walking down a corridor, feeling
- 20:46the walls, like, at least I know I'm going this way and I know
- 20:49I'm not going that way. And I, and I think a lot of
- 20:51people don't do that. I think a lot of people don't
- 20:53make decisions because they think they have to have it all
- 20:56planned out and they have to have an exact north star of
- 20:58where they're going. I think that's a huge mistake.
- 21:01And one example of this is I used to play video games
- 21:04professionally in high school and I always thought that I
- 21:06wanted to be a Twitch streamer because they make lots of money
- 21:09and they seem to have a really good time doing, you know,
- 21:11playing video games. I tried Twitch streaming for
- 21:14like a month and I absolutely hated it.
- 21:16And all my friends that I'd be good at it.
- 21:17Everyone said I would love it. I thought that was going to be
- 21:19my career and at least I tried it and I had the balls to go
- 21:22jump and try something. And a month later I was like,
- 21:24wow, this is not for me. I absolutely hate it, but if I
- 21:26had not jumped and tried it, I would have thought my whole
- 21:29life, like if I failed, like I would have said to myself, man,
- 21:31I would have been such a good Twitch streamer.
- 21:33Like what could have been like the glory days, you know?
- 21:35So it's really important to just try stuff the same way that I
- 21:38just started working with your company and I'm trying out the
- 21:40podcast and all that. I might absolutely hate
- 21:43podcasting in a month, but at least I'm going to try it and
- 21:45figure out if I like this or not.
- 21:46So far I love it. And I don't know, in a in a
- 21:48month or two if I hate it, I'm going to stop and I'm going to
- 21:50do something else. But but yeah, you have to jump.
- 21:53It's such an important point, like getting comfortable with
- 21:56failure or always putting your yourself in a position where you
- 21:59can actually fail. You know, it's like, I like to
- 22:02do yoga and there's just these people that are like ballerinas
- 22:05and dancers in there. I'm like, Oh yeah, well, it's
- 22:07easy for you. I'm like the Tin Man.
- 22:09I fail in yoga every single day. People are very afraid to fail,
- 22:13though. They're very afraid to fail.
- 22:15Yeah. What do you think that is?
- 22:18I, I, I think it's the fear of looking, I guess it's the fear
- 22:20of looking dumb or, or being embarrassed.
- 22:22And I think that that probably holds more people back than any
- 22:24one thing. Like genuinely like having
- 22:27people wondering, like what their friends are going to
- 22:29think, what their family's going to think.
- 22:30And I know that sounds very cliche, but it's so true.
- 22:33And, and people always say like, oh, go follow your passion or
- 22:36find your passion. Passion is bullshit.
- 22:37Like you're passion about things that you're good at, right?
- 22:40And you're not going to be good at something until you fail a
- 22:42bunch of times even like even, let's say that for whatever
- 22:45reason, you're, you play guitar, right?
- 22:47Or you do yoga, whatever. But let's use guitar as an
- 22:49example. And let's say you're really,
- 22:51really good at guitar and you want to turn your passion into
- 22:53your career. Like eventually you're going to
- 22:55have to go find an agent. You're going to have to do
- 22:57things that you don't want to do.
- 22:58That is not just playing the guitar.
- 22:59You're going to have to market yourself.
- 23:00You're going to have to do interviews, you're going to have
- 23:01to do podcasts. You're going to have to market
- 23:03your new CD. There are parts of that business
- 23:05that are not going to be your passion.
- 23:07So in my opinion, I think passion comes later.
- 23:10I think you get good at something first, then you find
- 23:12your passion after. And again, like, even if you
- 23:14want to be a, a guitarist, like yes, that's your passion, but
- 23:17there's still so many things you're going to have to do that
- 23:19are outside of you just playing the guitar to actually make
- 23:21money doing that thing. So either way, it's going to be
- 23:23a business. And I think, I think the, you
- 23:26know, don't do anything until you find your passion thing is
- 23:29complete bullshit. And I think people just should
- 23:31just try stuff and see what they're good at, see what they
- 23:33like, see what they don't like, and just blindly like, just try
- 23:36stuff, Try and fail as many times as you can, literally.
- 23:39Yeah, I I totally agree. And there there seems to be like
- 23:41some kind of dividend that pays in a novel ways and like a
- 23:44chaotic good way. Like you go and you fall on your
- 23:47face over and over again. You just don't understand that
- 23:50in this other domain it's going to be this huge win.
- 23:52So, for example, did have you seen this story recently of the
- 23:57Minneapolis Sudanese daycare centers?
- 24:01I saw something about that. Isn't there some scam?
- 24:03What? What's going on with that?
- 24:04Yeah, yeah, yeah. So.
- 24:05The scam is, is that like these Somali people, and no, no
- 24:09disrespect to Somalis, but they just happen to be Somalian,
- 24:13we're getting like massive government grants.
- 24:15We're talking about hundreds of millions of dollars that they're
- 24:18putting into like daycare Centers for kids.
- 24:20Well, this guy on YouTube shows up at the daycare centers and
- 24:24there's no kids there. He's like none.
- 24:26And he's like, well, they just got a $7,000,000 grant in
- 24:28October. There's not even a kid here.
- 24:31So he kind of uncovers this on his YouTube channel.
- 24:33It blows up. So this is a national news
- 24:36story. He's gotten 500 million views or
- 24:38something insane on his YouTube channel.
- 24:40And before that, he was doing like prank videos, you know, And
- 24:43then he got into like investigative journalism.
- 24:47So I was listening to an interview with this guy and
- 24:49they're like, dude, you're doing some kind of like risky stuff.
- 24:52I mean, he like, shows up and it's just like, hey, what's up?
- 24:54Why, Why are you guys getting all this money?
- 24:56And like, where, where's it going?
- 24:57And like, he's pressing people that don't want to be pressed.
- 25:01So they're like, how did you kind of get the courage to do
- 25:03this? He was like, I was a Mormon
- 25:05missionary for two years. I walked in front of people all
- 25:08day long that wanted nothing to do me with me, cussed me out,
- 25:12chase me out you know, told me to go F myself and he, he's like
- 25:16it inoculated me to failure. Which is a beautiful thing.
- 25:20And he's with that's called winning in the weeds.
- 25:21That's what he did right. And sorry, sorry, can you
- 25:24continue? Go ahead, Go ahead.
- 25:26No, just the only the the end point of that is then it started
- 25:29me looking back and I was like, Oh well, what about me?
- 25:32Well, when I was 19, I hitchhiked to Alaska and the
- 25:36only job I could get was canvassing for Greenpeace.
- 25:40Now, Alaska's an interesting place because it's the only
- 25:43place in the United States where the rural people are very
- 25:46liberal and the people in the city are very conservative.
- 25:49Everybody in the city of Anchorage works for oil and gas,
- 25:53lumber, fishing, basically all natural resources, which is to
- 25:57say they hate Greenpeace with the burning passion.
- 26:01So I'd show up, knock on the door, like, hey, I'm canvassing
- 26:04for Greenpeace. Like they would stick the dog on
- 26:07me. Dude pulled a piece out, chase
- 26:09me off his property. And like, you know, after a week
- 26:11of that, I was like, I'm invincible, man.
- 26:14I, I just want to go talk to some ladies, have tea and see
- 26:17what I can do. I don't think I got like $5.
- 26:19I mean, literally they all hated me.
- 26:21But it was from that that like kind of my passion, should I
- 26:25say, for sales was like, oh man, there's something here.
- 26:28You know it. If I could sell myself before I
- 26:30sell the product, I could probably get some people on
- 26:32board. So this idea of inoculating
- 26:35yourself with with failure, particularly when you're young,
- 26:38I think it's absolutely crucial. And and those two things like
- 26:42it's, it would be very hard. I don't know who said it, but
- 26:44you can't connect the dots or do you Only Connect the dots
- 26:47looking back, right. And and like you just said, like
- 26:49that whole experience going door to door sales, like you didn't
- 26:52know at the time that that was going to lead you to sales.
- 26:54You were just doing stuff. And then you only realize later
- 26:56that that thing that you're doing, kind of like the Mr.
- 26:58Miyagi wax on wax off thing when in the New Karate Kid or
- 27:01whatever, when he's putting down the jacket, putting it on,
- 27:03putting down the jacket, putting it on, he doesn't know, but he's
- 27:06learning how to fight. He's learning karate.
- 27:08Exactly, exactly. It's winning in the weeds and
- 27:10doing all this stuff that you think is useless at the time.
- 27:13But then all of a sudden you come to an experience where
- 27:15you're for whatever reason, very good because you had all these
- 27:17individual experiences. They gave you the skills and LED
- 27:20up to you being really good at that other thing.
- 27:22And you don't know it while it's happening.
- 27:23You can only look back and see in retrospect, right?
- 27:26So it's it's such a cool, such a cool concept.
- 27:28And that's why I'm such a big fan of dude, just do stuff.
- 27:31Just do stuff as much as you can.
- 27:34Yeah, and it, it, it gives you a, a feeling of the patina of
- 27:39failure, like what is the essence of it so that you can
- 27:41recognize it down the road, You know, because the almost the
- 27:45worst thing that can happen to you as an entrepreneur is you
- 27:47have some home run right out of the gate because every company,
- 27:50every project has a beginning, middle and an end.
- 27:53And if you just expect that like your brilliance is going to
- 27:55shine every single time you're you're ready for heartbreak.
- 27:58But if you've tasted defeat, then when you you find something
- 28:01that catches fire, you get, you get like early signs of
- 28:04traction. You get you starting to get
- 28:06market share. You're like, Oh my God, I have
- 28:07product market fit and it blows up.
- 28:09You know what that feels like? And you can balance them.
- 28:11So when you have a project that's, that's not doing so
- 28:15well, you can be like, OK, I need to put that away now.
- 28:18I, I think the important part here and why people hate failure
- 28:21is because what they'll do is they'll would shed an idea for
- 28:24years and years and years become totally attached to it as their
- 28:27identity. And if it doesn't work, that
- 28:29means that they don't work, you know, so, so they, they can't
- 28:33separate themselves from the, from their idea.
- 28:36But the, the truth is, is like you got to sacrifice your
- 28:39babies. You got to put a knife and a
- 28:41dagger in the heart of your baby and take it out sometimes if
- 28:44it's not giving you what you need, you know?
- 28:46Dude, 1000% and and that's the thing about business is I, I
- 28:50care way more about something working than me being right.
- 28:53If it works, it works. And that's so many people.
- 28:56And I see even with, even with some of my friends with
- 28:58entrepreneurs is like they're so there's this ego that comes into
- 29:01it where that's like, no, my idea is right.
- 29:02Like it has to be this way for me.
- 29:04It's like, dude, if my idea is right or your idea is right, I
- 29:06don't, especially with my business partner, it's like, I
- 29:08don't care. I care that it works.
- 29:10And that's why I love, I love Mike, who is my now partner is
- 29:12both of us have this mindset of like, maybe you're right, maybe
- 29:15I'm right. Neither of us care about who's
- 29:16right. It's like what works?
- 29:18What's going to win? What's going to make us more
- 29:19money? What's going to drive the
- 29:20company forward. And I think a a lot of
- 29:22entrepreneurs struggle with that ego, especially once you start
- 29:25to see some success. Actually, actually, yeah, as you
- 29:28get successful as an entrepreneur, you start to think
- 29:30like, hey, I'm the shit. And I think it's very easy to
- 29:32shift from that kind of newbie, newbie mindset of like, I just
- 29:35hope everything works and I want to learn to yeah, I know exactly
- 29:38what I'm doing. I think people entrepreneurs
- 29:40start to fail once they start to get that ego right.
- 29:42And that's something I'm really trying hard to kind of maintain
- 29:46as my curiosity and understand that I still know anything.
- 29:48I'm a baby in this game and there's always someone who knows
- 29:51more than me and always being able to learn from every single
- 29:53person I talk to. I think that's very, very
- 29:55important and I see a lot of entrepreneurs in general who I
- 29:58can tell like they just, they think they know everything and
- 30:01that I think that kills businesses very, very fast.
- 30:04100%, I totally agree. Now let's talk about your ramp.
- 30:07So you have some validation with the Airbnb business.
- 30:11You're like, hey man, I think I can extend this.
- 30:12You have some experience with some friends that are struggling
- 30:15with marketing in the trades. You're like, let me see if I can
- 30:17put two and two together. So you you go to go high level,
- 30:21you create a functioning software, it works for your
- 30:24buddy. How do you then basically take
- 30:26the next steps to go find customers?
- 30:29Yes, I, I just, I literally didn't know what to do.
- 30:31That was a great question. I mean, there's such a huge
- 30:33skill deficit at the beginning. Like I don't even, I didn't even
- 30:35know what that meant to go get customers.
- 30:37Like I knew I had to get stuff people to pay me, but I had no
- 30:39idea like what route to take. So I just picked up my cell
- 30:42phone. I, I googled handyman, handyman
- 30:44near me and I just started calling local contractors here
- 30:47on Maui and I just started walking to businesses and say
- 30:49like, Hey, I have this software like can I build out for you for
- 30:52free and see if you like it? And that's it.
- 30:54I started with like free trials. I think I got to like 3 or $4000
- 30:58a month, which is like 20/15/20 customers just calling people
- 31:01off Google Maps. And then we discovered paid ads,
- 31:05which is like Meta ads, Google ads, but essentially meta.
- 31:08And that's where I can, you know, take a video of myself
- 31:10saying, Hey, I have this thing like here's what it does, do you
- 31:12want to give it a try? And then I can put money into
- 31:14that ad and have people across the world contractor see it.
- 31:18And the way that we really ran our ads was me saying stuff that
- 31:21like nobody else would say, which is like, like I remember
- 31:24what we had one ad, which is me saying, contractors, let me try
- 31:27not to scam you like everyone else.
- 31:28And then I would talk about like what we did and that ad went
- 31:30crazy or contractors, this is an ad from a douchey looking guy in
- 31:34a hat. Please don't click off.
- 31:35Give me 3 seconds, I'll change your life.
- 31:36Like just weird stuff like that, that nobody in the market was
- 31:39saying because everyone had these highly edited, highly
- 31:42scripted ads. And I came along and just filmed
- 31:45like the most casual stuff and just had crazy hooks.
- 31:47And those ads just took off, which exploded our acquisition.
- 31:50So, so yeah, that's, that's kind of how the acquisition works,
- 31:53man. It was, it was crazy because no,
- 31:54everyone told me not to film those ads and not to run that ad
- 31:57because it would be bad for the brand and not look professional.
- 31:59And I was like, fuck it, dude. Contractors don't want
- 32:02professional. They want like authenticity,
- 32:04right? So, so yeah, that's kind of how
- 32:06it exploded. Yeah, amazing.
- 32:08So early on how how did you find signal?
- 32:10Obviously you're getting, you're getting leads in.
- 32:13Did you, what was your CAC? It was 1 to one on the front end
- 32:17and it's still, it's still almost one to one on the front
- 32:18end, which is that's exactly what we're looking for.
- 32:20That's 300 bucks. 3. 100 bucks, 297, yeah.
- 32:23And then and then now we have upsells and then we have
- 32:26obviously all recurring revenue. But if we could just break even
- 32:28on that front end, 1 to 1 plus money with upsells, we basically
- 32:32have unlimited money to run back into advertising, right?
- 32:35So, so yeah, the Lt. VS obviously like 7 to one,
- 32:37eight to one, we would love that to be 20 to one.
- 32:39That's obviously a forever problem.
- 32:42And then as you grow a company and you know, as you start
- 32:44onboarding, you know, 10 people a day, it becomes a customer
- 32:48service issue, right? Because now you have so many
- 32:50people that you have to hire a bunch of customer service reps
- 32:53and then you have one customer service Rep handling 4050 people
- 32:56and that customer service Rep quits.
- 32:58Then you have to somehow juggle those 40 to 50 clients onto
- 33:01another service Rep. So obviously the bottlenecks
- 33:04change as you grow. But at the beginning, everyone
- 33:06has an acquisition problem at scale.
- 33:08You have a customer service problem, right?
- 33:10And that's what we've been hitting the last four or five
- 33:12months has been in churn and customer service problem, which
- 33:15again, me and my partner, this is both our first business.
- 33:17We still have no idea what we're doing.
- 33:18We're just figuring it out as we go, right?
- 33:21Amazing in churn? What?
- 33:22Why are people churning? So people the, the main reason
- 33:25people churn is bad, bad choosing of the client, having
- 33:28someone come in and see $297.00 and think, oh, this is a full
- 33:32service lead generation system, right?
- 33:34As opposed to them thinking this is a software to help them run
- 33:36their business. They come in thinking it's just
- 33:38for leads. So that's on our sales guys,
- 33:40that's on the marketing and that's just picking the right
- 33:43client avatar dude. And that's and that's something
- 33:45that we'll never, I mean that's going to be a problem forever.
- 33:47It's always going to be an issue, right?
- 33:48Because contractor sees like, oh, help me get more business
- 33:51for 297. They automatically think leads
- 33:54and while like website Google reviews, AI does help them get
- 33:57more business, It's not a direct correlation.
- 34:00It's not like we're running paid ads for them and saying, hey,
- 34:02you spend $500, you should get this many leads.
- 34:04It's how you're spending $297.00 a month.
- 34:06We're spending, we're saving you a lot of time.
- 34:08We're making you show up better online and we're making you look
- 34:10more professional. There's not a direct correlation
- 34:12between hey, we're going to get you 50 extra Google reviews and
- 34:14you're going to make $125,000 more revenue.
- 34:17It's an indirect correlation as opposed to A1 to one direct
- 34:19correlation. So it's a little bit different
- 34:21and explain that value and having have them to understand
- 34:25the value of the software is the hardest thing.
- 34:27And obviously we're way better at it now.
- 34:29But if we can get them to understand the value and get
- 34:31them to see like, holy shit, this is so valuable.
- 34:33I need to use this. They never turn.
- 34:34But it's the guys that come in with the wrong expectations.
- 34:37And that's on me as the marketer and that's on me training the
- 34:39sales team to actually say the right shit and not just blindly
- 34:42sell, right. I think, by the way, is the same
- 34:45reason that you that you take your calls as well, because you
- 34:47don't want random sales people just selling people that
- 34:49shouldn't be qualified to work with you, right?
- 34:51So it's same issues all the way across.
- 34:53Business is business. Yeah, you, you know it 100%.
- 34:56You know it. It's also there, it's such a
- 34:58transactional economy that you know, having a beautiful
- 35:01website, having a good media presence is, you know, let's say
- 35:06a best case scenario, a three month burn before you start to
- 35:08see traffic generated from that website.
- 35:12So what I love is the, is the review automations that you have
- 35:17as well. Did you kind of use that?
- 35:18So that, hey, while we're starting to let this website
- 35:21cook, you know, like we can go back to all your old customers
- 35:24and get reviews, which then in turn increases your local search
- 35:28and, and all those things. So now you have a bit of a a
- 35:30bridge to get from, you know, .0 to .1. 100% So with software,
- 35:35there's something called time to value, which is like how fast
- 35:38once somebody signs up, can you get them on board and they can
- 35:40see value from your software, right.
- 35:42So that's why we do the reviews and also those reviews help
- 35:45contractors rank higher on Google as well.
- 35:47But the craziest thing is not only do we do the reviews, but
- 35:49contractors in general usually have a huge list of past
- 35:53customers that they haven't talked to in years, months or
- 35:55years or whatever, right? So we'll also take that old list
- 35:58and we'll blast that entire list, 20 or 30 people a day with
- 36:01some kind of a discount offer. And then we'll have an AI bot
- 36:04qualify those leads and book them into the contractor's
- 36:06calendar. So essentially once like we can
- 36:08get them 5060, even $100,000 worth of work just by blasting
- 36:13text messages that old list. So that's a very, very easy win
- 36:16that proves our value right off the bat.
- 36:17So we have that list getting blasted with reviews and we had
- 36:20that list getting blasted with reactivation campaigns that
- 36:23basically offer discounts or incentives for old customers to
- 36:25come back and buy again. So that's how we get, you know,
- 36:28QuickTime to value. And that's very, very important
- 36:30with with churn as well. The quicker you get someone on
- 36:33boarded and show their value, the longer they usually stay on
- 36:35the software. 100% OK, so you kind of doing 1 offs, you start
- 36:40running ads, ads start blowing up.
- 36:42So what is what does your your calendar look like?
- 36:44Are you doing 15 minute calls, 30 minute calls?
- 36:47Like how how did that kind of translate into like calls on the
- 36:50calendar? And then what was kind of
- 36:51conversion rate and closing right after that?
- 36:53Yeah, so. Closing rate was crazy high.
- 36:55We had like a 55% close rate. I had like a 70 when I was doing
- 36:58it and our sales team now has about a 50, which, you know,
- 37:01some people would look at that and say, like, oh, you need to
- 37:03up your prices. And, and that's fair enough.
- 37:05And people have been telling me since day one, we're too cheap.
- 37:07And people have been telling me day one, do all this.
- 37:09Do it. Like since day one, people have
- 37:11been telling me I'm running this business incorrectly.
- 37:12So it is what it is. It's obviously working.
- 37:15But but yeah, it was just me, 15 sales calls a day, waking up at
- 37:197:00 AM, doing sales calls of 6:00 PM.
- 37:21And man, I was so burnt out by the end of it.
- 37:24I like started to realize that I talked to my partner and I was
- 37:26like, dude, I'm doing this company a disservice because I'm
- 37:29so burnt out on like on this. I know you're burnt out on this.
- 37:32And we had this negative, not negative, but I guess you could
- 37:35call it a limiting belief that only me and him could sell this
- 37:37thing. We didn't believe anyone else
- 37:39could sell it. And that's a classic, a classic
- 37:41misconception for a first time founder to think like where the
- 37:44shit and nobody else can do what we do.
- 37:46But we realized like, man, we have to hire a sales team.
- 37:49And once we hired a sales team and we got people taking the
- 37:51calls for us, it freed up our time.
- 37:53So freed up his time to go do the back end tech and
- 37:56automations and it freed up my time to only market.
- 37:58And once we did that, that's when we really exploded because
- 38:02instead of me sitting on sales calls for 12 hours a day wanting
- 38:04to jump off my balcony, I could then just sit back, look at the
- 38:07company from a bird's eye view and be like, OK, I can do this
- 38:10ad, this ad, this ad, I can do YouTube content, I can market
- 38:12this way. I can help the sales team sell
- 38:14XYZ. So once you remove yourself from
- 38:16the bottleneck and you can get that fixed by someone else, you
- 38:19can just go hyper scale mode because your time is not taken
- 38:22up by sales calls all day. So that was a huge lever for us
- 38:25to pull and that's when we just, that's when we went from, you
- 38:29know, 100 and 5200 clients like 700 and like under, under a year
- 38:33as wild. Incredible.
- 38:35You know it, it can't be mind numbing, that kind of pace.
- 38:39But what happens is your pitch becomes a finely tuned weapon.
- 38:44So you know, so good that you can do it with hamster eyes and
- 38:47you're still closing at 70%. You're like, what in the world?
- 38:51So. Oh, Matt, Matt, sorry to
- 38:52interrupt. I probably shouldn't say this on
- 38:53a pod, but there, there was a period where it's just like we,
- 38:55I, we were so over it where I would just go party in Texas
- 38:58with one of my buddies and I would just, we would just get
- 39:01obliterate. And this was when I was just, my
- 39:02only role was to do sales calls. So we just get obliterated.
- 39:05I would wake up to three hours of sleep and I would just wake
- 39:07up still drunk and just close everyone because like you said,
- 39:10you're just so you're so good at it.
- 39:12Like, you could do it backwards, forwards, upside down, Like I
- 39:14could close someone if I was in a coma at that point.
- 39:16Yeah. And you just get so good at this
- 39:18thing. And then it becomes so easy to
- 39:20then teach someone else because you're so good at it because
- 39:22you've just done it so many times.
- 39:24Like you just, you've seen every single variation of of the sales
- 39:27call and how it goes. So yeah, continue.
- 39:29But it's just you. Just you just do the thing so
- 39:32many times it'd be unreasonable for you not to be just amazing
- 39:35at it, you know? I love it, and ultimately that
- 39:37is what I love about productized services or services of
- 39:41software. They're calling it now, is that
- 39:43you're doing one thing for one person and you're going to do it
- 39:46to be the best in the world. You learn all the objections,
- 39:49you know how to overcome all of them, and you can just
- 39:52absolutely crush. So when you're approaching a
- 39:55pitch and you want to bring on a new salesperson, how are you
- 39:58introducing this pitch? Like what are the components?
- 40:00Of a pitch and where are you moving to close and things like
- 40:03that. Should be so funny man.
- 40:04And, and this is like maybe someone else has had this, I
- 40:07don't know. But we, we, we kind of fell, we
- 40:09stumbled backwards into this by just being so burnt out.
- 40:11We just stopped. We just stopped caring.
- 40:13And funny enough when we, when we were so burnt out and we put
- 40:16in less effort and talked less, we just started closing like
- 40:19crazy. So the pitch is literally it
- 40:21goes like this. We send them a video before the
- 40:23call. It's a 6 minute video of me
- 40:24talking, showing the software. We literally train our sales
- 40:27guys and say, Hey, how's, how's your day going, blah, blah,
- 40:29blah. They sit there and they are
- 40:31trained to say awesome man. Well, what questions do you
- 40:34have? Silence, answer the question.
- 40:36What questions do you have? Silence, answer the question.
- 40:40Cool man. What other questions do you
- 40:41have? Literally that is the pitch.
- 40:43That is it. They just keep answering the
- 40:44question until there are no more questions left and then they say
- 40:47awesome. So is there anything else you
- 40:48need to know before we get you started?
- 40:50Those words are like gold. And then boom, as long as they
- 40:53say no, we just can't. And that's it.
- 40:54Like it's the simplest sales process in the world.
- 40:57There's no, how would this make you feel?
- 40:59There's no getting the pain. There's no like I think you come
- 41:02from high ticket sales. So there's this whole sales
- 41:04process. We don't do any of that.
- 41:06It's just simple. What questions do you have?
- 41:08I know you saw the video covering exactly what we do.
- 41:11What questions do you have? That's it.
- 41:12Dead simple. So simple.
- 41:14And it crushes crushes the. Assumptive clothes.
- 41:17And I mean at 297 people just like, yeah man, let's give a
- 41:20shot. We need a website done.
- 41:23I love it. And then you can just funnel
- 41:25this mass volume in the front door and you're still going to
- 41:27have 10% of people that hate you and that they're like, you know,
- 41:30not not hate you, right? But they're going to be unhappy.
- 41:32There's going to be mismatched, mismatched expectations.
- 41:36Those are the guys you just refund and say, hey, sorry,
- 41:37we're not the company for you. But 90% of the time it goes very
- 41:40well. It's very smooth.
- 41:41And then you can cherry pick from that 90% who you want to
- 41:44try to upsell later to more services.
- 41:46And the beautiful thing about that is you can cherry pick the
- 41:48people that you know are going to get the best results.
- 41:51So it's very easy for them to do well and for them to continue to
- 41:53pay you a lot of money because you just know what kind of
- 41:55customers will succeed and what and what won't, right?
- 41:58So instead of just taking on everyone, you take on everyone
- 42:00at the 297, which is very cheap. And then you cherry pick the
- 42:03people that you want to upcharge, and they almost always
- 42:05do well because we know who's going to do well and who's not.
- 42:08So. So yeah, that's basically the
- 42:09system, man. Cool, I'm a big fan of sales
- 42:12enablement videos too. Largely so everything is just
- 42:15review after that. Plus if it's like your face on
- 42:18the video then they meet you, they feel like they know you a
- 42:21little bit. It works really well.
- 42:22If they haven't seen the video, what do you do?
- 42:25Or is the only way you can get to the calendar through the
- 42:28video? Yeah, but there's a lot of guys
- 42:30who show up and not see the video.
- 42:31And we train the sales guys to say, oh, no worries at all.
- 42:33Like here, let me just send that to you real quick and I'm going
- 42:35to grab some water. I'll just have you watch it and
- 42:37selfishly, man, like if you watch that video and you decide
- 42:39it's not for you, I don't want to waste your time.
- 42:41Just let me know. And you know, we can hop off,
- 42:43but just give that video a quick watch and then they pitch right
- 42:45after the video every single time.
- 42:47Brilliant. I love it.
- 42:48They have to because otherwise otherwise, because like the the
- 42:51thing about those pre call videos and I don't know why more
- 42:53people don't use them is there's never going to be a time where
- 42:56you can record and talk about why your thing is the best,
- 43:00where you have no pressure. You can do as many mess ups as
- 43:02you want. You can talk to the camera and
- 43:03you can get your value across so well and you have unlimited mess
- 43:07ups because you're recording. You can always edit or rerecord
- 43:10whatever. And when someone's watching the
- 43:12video, their barrier to like feeling like they're being sold
- 43:15to is never going to be lower because we're not on a call.
- 43:18There's they're not face to face.
- 43:19They're just simply watching a video.
- 43:20So they're being sold to without even knowing it.
- 43:22So they're getting the best version of you and you're
- 43:25getting the best version of them because their barrier to being
- 43:27sold to is down and you're presenting in the best possible
- 43:30way. I'm never going to present what
- 43:31we do better live than I will on a recording because I have
- 43:33unlimited tries at the recording.
- 43:35So that's what we realized very early on as well.
- 43:37So that that pre call video is the the golden nugget to the
- 43:42success. Like there's there's no way
- 43:43would be where we were without that video where we are
- 43:45beautiful. Amazing.
- 43:47OK, so you've, you've nailed the marketing, you've got traction.
- 43:50You're looking for product marking fit.
- 43:51You started, you're getting burnt out.
- 43:53You're starting to say like, OK, we need to bring people in.
- 43:56Who are your first few hires? Yeah.
- 43:58So I mean, sales was sales was huge because that that's the,
- 44:01that's the engine of the company, right.
- 44:02That's the, that's the, that's how you get the train leaving
- 44:04the station. So our first people were sales
- 44:08and then we did a customer success managers to handle the
- 44:10back end fulfillment. And then once you have sales, so
- 44:13you have people handling the front door and you have people
- 44:15fulfilling on the back door, right?
- 44:16You're basically now your, your hands off.
- 44:18You're no longer talking to clients at all.
- 44:20So once we have that, like, I mean, that's, that's pretty much
- 44:23where we are now. And we're just, you just have to
- 44:25do more. So once something's working, you
- 44:26just do more. So now we're just, OK, do we
- 44:29have a sales? Like do we have too many leads?
- 44:30OK, we need more sales people. Do we have a churn problem?
- 44:33Are clients unhappy? OK, we clearly have a customer
- 44:35success problem. So there's really only two
- 44:37things. There's there's really no
- 44:38product like there's really never a problem with the product
- 44:41unless like some update gets pushed and gets messed up.
- 44:44We know the product is good. It's just about OK, do we need
- 44:46more customer success? Do we need more leads and more
- 44:49sales people, right. So it's, it's really just just a
- 44:51balancing seesaw and it's very simple.
- 44:53I mean, I think about like other companies our size and there's
- 44:56just so many moving parts. And it's like not to say that we
- 45:00don't have a lot of moving parts, but it's fairly
- 45:02straightforward. It's, it's just like what I
- 45:03said, do we need more sales? Do we need more customer success
- 45:06and then just hire for that role.
- 45:07That's literally it. Yeah, and I've, I've always
- 45:09hired 2 salespeople at a time, so they just do against each
- 45:12other. Yeah, nice.
- 45:14How do you manage relationship between sales and fulfilment?
- 45:17Because usually it's like the spider man meme where everyone's
- 45:20pointing at everybody. Why is church so high?
- 45:22Well, I'm getting the terrible clients.
- 45:24Why aren't, you know, that kind of thing?
- 45:25How do you deal with kind of internal struggles?
- 45:28You had to be 100%. It's a shit show, man.
- 45:31Problems. Yeah, yeah, it's definitely an
- 45:33issue. We we have sales meetings and me
- 45:36and Mike, we're very good at like we're both young guys.
- 45:38So we're very good at creating company culture.
- 45:40And it's just like, hey man, if someone's full of shit, like
- 45:42just say it. Like if there's a problem,
- 45:44somebody say it like there's no fingers being pointed here.
- 45:46Like let's just again, it's about like what's right.
- 45:48It's not about who's wrong unless.
- 45:50And that's why we have several sales people and several
- 45:52customers success people because it's very clear to see when
- 45:54there's a problem, when it's the, when it's the problem with
- 45:57the same customer service Rep every time.
- 45:59Or it's a problem where a customer service Rep will say
- 46:01like, hey, I keep getting these bad clients.
- 46:03And then you just you, you trace it to the source.
- 46:05So if we have all ten of our customer service reps saying
- 46:08like, I've gotten like 2 bad clients this month.
- 46:10And then we just go look where those bad clients came from.
- 46:12We just look what sales guy actually sold that client on our
- 46:15service. And then again, let's say we
- 46:18have, you know, 20 people churning.
- 46:19They're all very, very unhappy. And let's say 80% of those
- 46:22people came from 1 customer service Rep.
- 46:24It's like, OK, there's problem. There's probably a problem with
- 46:26that specific Rep. So you just backtrack the
- 46:29problems to their origin and then you solve accordingly, if
- 46:31that makes sense. 100% yeah. So you, you know, you built that
- 46:35up to a $2,000,000 annual run rate and breakneck speed, which
- 46:39is thousands of customers at a time.
- 46:41What were some major benchmarks where you kind of looked at your
- 46:44partner were like, this is crazy.
- 46:46Like what were some of the the the different kind of like times
- 46:50that you could tell something changed?
- 46:54I really haven't felt much since I had the 1st $10,000 a month,
- 46:56man. It's, it's just kind of been
- 46:57like a video game for me since then.
- 47:00Like it, it's, it's weird. Yeah.
- 47:02I mean, I, I would say the big one was when we got out of
- 47:05sales, that was probably huge because we're like, holy shit,
- 47:08like we are now. There was a time when it was
- 47:10just me and my partner. We had two sales reps and like 3
- 47:13CSM and the company was still fairly small.
- 47:15I think we're doing like $100,000 a month.
- 47:19So it's still 1,000,000 / 1,000,000 a year, but it was
- 47:21still fairly small and me and my partner looked at each other and
- 47:24we're like, dude, we can just chill right now.
- 47:26Like we, we all we do is jump on two or three hours of meetings a
- 47:29week with our sales guy, sales guys and our CSM.
- 47:31So we're like completely just chilling.
- 47:34We're both taking home like 2020 KA month or so.
- 47:36So that was a big one. We're like, wow, like we could
- 47:38just be hands off right now and not do anything.
- 47:40And of course, being young hungry guys, we look at each
- 47:43other and we just go like, yeah, fuck that.
- 47:44Let's scale this. So now we're obviously back in
- 47:48the shit show of, you know, just building a, a huge company, but,
- 47:51but man, yeah, I haven't, I don't think I'll ever be as
- 47:54hungry or as excited as I was heading that first $10,000
- 47:58month. Like that's, that's the
- 47:59happiest, most like the craziest I've ever felt because I was
- 48:02like, Oh my God. Like I really locked myself in
- 48:04my room for two years and, and built this.
- 48:06It's like that was surreal for me.
- 48:08You know, I didn't have a lot of self belief.
- 48:10I kind of thought I still think I'm pretty dumb.
- 48:11But back then especially, you know, I, I didn't think I was
- 48:15the brightest going in the bank. So.
- 48:16So yeah. So exciting man, and Congrats.
- 48:20Now I'm gonna bounce around a little bit, but the scaling with
- 48:24meta ads is incredible. Feat itself.
- 48:28How much targeting did you do and how much did you let kind of
- 48:30meta AI kind of do what's saying?
- 48:32Yeah, great question. That's funny.
- 48:35I don't know if you've heard of the Chad, the Chad approach
- 48:36versus the Virgin Media buyer approach.
- 48:38I. I don't know it.
- 48:39So the, the Virgin Media buyer is the guy tracking their CPMS
- 48:42Like trying to get like a .5% better row as you know, Max just
- 48:46maximizing their ads, the absolute fullest ability.
- 48:49And they, they fight for like a, you know, they fight for like a
- 48:51.5 row ads, which is return on ad spend.
- 48:53Then there's the chat approach, which is 0 scripting, turn on
- 48:56the camera and film open targeting.
- 48:58Let Facebook just RIP. And I've done the chat approach
- 49:01forever. I literally will film something
- 49:02wild, put captions on it, slap it in, let Facebook do its thing
- 49:06and that's it. And I would just, I would just
- 49:08pump out mass volume of ads of me saying funny wild stuff.
- 49:11And I would just let Facebook's AI do its thing.
- 49:13And I, I don't know what media buyer thinks that they're better
- 49:17at Tarvin than like Facebook. Like Facebook wants you to do
- 49:20well. They want you to spend more
- 49:21money on their platform. You are not going to be better
- 49:23than Facebook's AI. So stop overthinking it and just
- 49:25blast ads. Blast as many ads as you can
- 49:28with as many different angles as you can.
- 49:30And like, dude, you're going to crush like you're like people
- 49:32who overthink it, man. They can never scale because
- 49:34they just, they, they overthink everything.
- 49:37So broad targeting all the way, baby.
- 49:39How many how many ads are you pumping into the the ads
- 49:41manager? Right now I probably have like
- 49:44150 running no? Kidding.
- 49:46About 3 KA day yeah, right now to make probably 2.5 a day and
- 49:50then as soon as it's again like I said, the seesaw right.
- 49:53So right now we don't have an acquisition problem.
- 49:55We have a we have too many customers coming in the door.
- 49:58We need better customer service because our customer service is
- 50:01going to shit because they're overloaded.
- 50:03So we have to fix that first before we can add more money to
- 50:06ad spend and bring people in the front.
- 50:07Otherwise we're just you know, we're just pouring water into a
- 50:09bucket with a bunch of holes in it.
- 50:10We had to plug the holes first, then I'll pour my water in cool.
- 50:14Two 2 1/2 K per day ad spend. Yeah, about probably about two
- 50:18point 2.4 right now and then on. I mean as soon as, as soon as I
- 50:21get the green light, I would spend 10 KA day.
- 50:24There's no reason not to. You know I would.
- 50:26I would spend 100 KA day if I could.
- 50:28Amazing home service businesses are super desirable right now
- 50:35for a lot of reasons. 1 you have the whole boomer generation that
- 50:39refuses to retire, but they can't really operate their
- 50:41business, but they have an incredible book of business
- 50:44which you already know you can take an established business to
- 50:47exit in no time. So is there a future play for
- 50:51using all of this is kind of a filtering kind of lead Gen. to
- 50:55find acquisition opportunities? Never.
- 50:58I will never run a home service business.
- 50:59I mean, if you saw me with a hammer Braille, you'd be like,
- 51:01put that thing down before you hurt yourself.
- 51:03There's there ain't no, there's there's no chance only because
- 51:06of the complexity of running a brick and mortar.
- 51:08And no shade to home service businesses or anyone that wants
- 51:10to do that. I just truly believe any brick
- 51:13and mortar business you like. If you sit there and we have a
- 51:16debate about whose business model is better, I'm going to
- 51:19destroy you every time because online money and it's just, it's
- 51:22completely different. Your margins are better.
- 51:23You can hire the same level, if not better of talent overseas
- 51:27for 8 to $10.00 an hour and it's just more scalable in every
- 51:31single way. And also, there's only so much
- 51:33you can do. Sometimes with brick and mortar
- 51:34business on my computer, I can sit here and always be doing
- 51:37something to drive the business forward.
- 51:39Sometimes with a brick and mortar, if you're like,
- 51:40sometimes you're just stuck, right?
- 51:42So just an I'll just never, I'll never acquire brick and mortar
- 51:45business ever. It makes no sense to me.
- 51:48Amazing. All right, Kyle, we're ready to
- 51:50enter the quantum round. Are you ready?
- 51:52I'm so ready. What is that?
- 51:54I don't know. It was the lightning round, but
- 51:57it's 2026. I mean, we're just going to go
- 51:59quantum. I love it.
- 52:00I'm ready. All right, Let's do it home.
- 52:02Let me. Let me get all my stuff in my
- 52:03monster. Let's do this.
- 52:04All right. Is there another category, if
- 52:07not home services, that you think a service like this could
- 52:10be successful with? Barbers and Med spots only
- 52:13because you can completely automate their website, their
- 52:15booking system and the review system and their payment system
- 52:17so easily, so easily. And and just you can just build
- 52:20something all the way down the chain that you can just take
- 52:21over their entire business A-Z and every single Med spot, every
- 52:25single Barber shop relies on calendar booking.
- 52:28Not all contractors need calendars.
- 52:29So every Med spa, every barbershop has to do some kind
- 52:32of booking system. Then booking systems and
- 52:34payments are some of the stickiest features you can
- 52:36provide to people. Med.
- 52:38Spas are like Botox and like liposuction and TRT and these
- 52:43kind of things. Exactly, exactly.
- 52:45But my my favorite would probably be a barbershop.
- 52:47Just it'll be just just because. Yeah, counter booking
- 52:50reactivation campaigns. They all need reviews.
- 52:52They all need websites, They all need counter booking.
- 52:54Yeah, I I would say that's better than home service.
- 52:57Cool, if you had to go back to college and do it again, what
- 53:01would you study differently? I would do nothing differently.
- 53:03I had a great time. I absolutely loved it.
- 53:05I I would, I would have actually, I probably would have.
- 53:07I probably would have tried less hard because I would have just
- 53:10had more fun partying because it was so those grades were
- 53:12complete. I had a good GPA, 3.8.
- 53:14Completely pointless to have that GPA didn't serve me at all.
- 53:20What's your relationship with alcohol now?
- 53:23I don't do it and then when I do it, I go way too hard.
- 53:25I still love it. You can, you know, you can take
- 53:28the, you can take the take the boy out of the frap.
- 53:29You can never take the frat out of the boy, as they say.
- 53:32Amazing. How are you using LLM's right
- 53:36now? Really just to write sales copy
- 53:39and then actually to kind of give me ideas and solve
- 53:41problems. So like I'll kind of say like
- 53:42what what the issue with the business we're having.
- 53:45It doesn't solve the problem for me, but I love working with
- 53:47people. I get a lot of good ideas from
- 53:49people. So I kind of just use it as like
- 53:50a third partner to kind of tell me where my logic might be
- 53:53flawed and then give me ideas and then I'll kind of just riff
- 53:56off whatever it gives me, basically.
- 53:58Yeah. Is there ACEO or another
- 54:02entrepreneur that you follow closely?
- 54:05I mean, anyone who's anyone who's in the space knows it's a
- 54:07daddy Alex Remosi, absolute legend.
- 54:09I mean, just just the just the best at everything he does.
- 54:12He's just, he's just phenomenal. And and it's just, I don't, I
- 54:16don't like to say I worship other men, but I worship him.
- 54:18He's an absolute guy. I know I, I would, I would, I
- 54:23would go on all the juice and get a one of those breathe right
- 54:27strips if, if he gave it to me, you know.
- 54:30I would, I would. I would.
- 54:32Yes, yes, 100%. He's he's amazing.
- 54:35Amazing. It sounds like your mom was an
- 54:37instrumental person in your life for those two years.
- 54:40You would shop, shopped in, in, in in her house.
- 54:45Tell me a little bit about your mom.
- 54:47Yeah, dude, I mean, she's, she's, she's amazing, man.
- 54:50She's like my best friend. She was, you know, I got kicked
- 54:52out of every single school I ever went to.
- 54:54She was always there for me. Like she was always fighting for
- 54:56me, always telling the teachers that they were wrong, even
- 54:58though she probably knew I was the problem.
- 55:00And yeah, dude, she's just, she's, she's been the one person
- 55:03to have like unwavering belief in me since day one.
- 55:06And even if I was like a loser, I still feel like she would just
- 55:09be like, as long as you're happy, you know, like, whatever,
- 55:11as long as as long as you're stoked on whatever you're doing.
- 55:13Obviously she's super proud of me that I made the business
- 55:15thing work, but I never felt any pressure to be successful from
- 55:18her or my dad, which was, I think that was awesome because I
- 55:20think pressure, pressure can sometimes it, it can make or
- 55:24break you. But yeah, man, she's just, she's
- 55:26just great. She's she's cool.
- 55:28Good lady, what what attributes would you share similarly to
- 55:31with your kids? I would say the ability to have
- 55:36laser focus on one thing for an extended period of time and just
- 55:39no matter what, like nothing else exists besides that one
- 55:42problem, that one thing. And no matter what you're waking
- 55:44up every day, I'm just going to solve that.
- 55:46And just being able to shut out every other opportunity.
- 55:48That's not that thing is it's it's key to entrepreneurship.
- 55:52Amazing. And I know, thanks.
- 55:54I'm talking to you. She kind of like went through a
- 55:55bout of breast cancer and was able to beat it.
- 55:58Yeah, yeah, she's, she's still going through it, but she's a
- 56:00lot better. We actually just, we actually
- 56:02just did the last round like 6-4 or five months ago or so.
- 56:07But yeah, she's doing a lot better.
- 56:09And yeah, it was rough. There's a crazy diagnosis to
- 56:12kind of just casually get dropped now.
- 56:14I think that was about two years ago or so.
- 56:15So she's doing a lot better now. And yeah man, fingers crossed.
- 56:19Amazing and want to give a shout out and I'm going to put a
- 56:21couple in the liner notes because what I'm going to do is
- 56:23find some like really great organizations that are doing
- 56:26awesome stuff with breast cancer.
- 56:28I'm going to see if I can find some spot local to to Hawaii too
- 56:31for you guys, because I know there's just some great works
- 56:34doing big stuff out there. Kai, this has been absolutely
- 56:38extraordinary. Thank you so much for sharing
- 56:40your story. What are the with the website?
- 56:43It's, I believe stone systems dot IO.
- 56:45Is that correct? Yeah, sound systems dot IO or,
- 56:48you know, if you want to send me Adm or, you know, shoot me a
- 56:50follow on Instagram, it's at Kai Stone.
- 56:51Anyway, that's kind of where I do a lot of my connecting and
- 56:53and talking and and stuff that is in the DMS.
- 56:55Then you know, there's I met a lot of cool people through
- 56:57YouTube. But yeah man, just if you want
- 56:59to hit me up, send me a message and we can connect.
- 57:02At Kai Stone on Instagram, and I'll link the YouTube channel
- 57:06too because I know it's new, but you're putting amazing
- 57:08resources. If you guys really like hearing
- 57:11about Kai's sales pitch and how he's gone step by step building
- 57:15his company, he's putting all that on a YouTube channel so you
- 57:18guys can check it out and follow in his footsteps.
- 57:20Kai, it's been amazing. Thank you so much.
- 57:22Yourself. Thank you so much, Ryan.
- 57:23Appreciate you. Hey founders, let me ask you
- 57:27this. Are you building with AI or
- 57:30getting left behind by it? If you're serious about scaling
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