I came across his sort of bulk service brokerage model on one of his most recent videos and could use some feedback on its viability. As I am a skeptic. He was asked how he would rise again if he lost everything; his money and his popularity.
The concept revolves around partnering with local businesses, particularly those offering services like chiropractic care, massage therapy, personal training, etc. and negotiating bulk rates. The plan is to front the capital for marketing these services and then work on generating leads. For example, I’d approach a chiropractor and propose that if I can bring them a certain number of customers, say 100, within a month, what would be the lowest rate they’d offer per customer. The idea is to secure these services at a discounted bulk rate and then market them to potential customers at a slightly higher rate, but still less than the standard price, thereby earning a profit from the markup.
However, I’m concerned about the practical challenges, especially the costs associated with marketing and acquiring customers. Do you think this is a feasible model? Has anyone here tried something similar or have insights into how this might work in practice?
Marketing costs alone, especially digital marketing, could cost a lot more than you’d make by generating a lead and closing the deal alone. If the chiropractor offers a $30 discount, you MIGHT get one or two customers if you ran some facebook or instagram ads for the same price. In certain conditions, I’ve gotten ZERO leads with 30 bucks. If you were doing some solo street team work, sure, I could see it working; however, running those ads in my opinion could only be of benefit for the business themselves because at least they’re building a reputation and generating some brand awareness.
Stuff like this makes me extremely skeptical on following the advice of any youtube guru at this point. It just solidifies in my mind the idea that most of these youtubers made money by selling courses. It just seems disingenuous.
If I’m wrong, I’d 100% love to hear why.
You’re wrong because you suck at what you do. You can’t jump into an industry/niche, say you’ll provide a service and not be able to execute. The problem isn’t the model, it’s that you have 0 experience.
To get leads you want to spend $50 - 100 per day… Business isn’t easy, and you shouldn’t expect it to be. The reason this model works (for him) is because he understands how to develop offers, he understands pricing models, funnel building, sales systems, etc. There are so many ways to make this model work, it’s just not easy.
You are wrong, that’s okay though. If you want to pursue entrepreneurship, the first thing you should do is fill up you ignorance debt. You can’t provide any value to a business, if you aren’t valuable. The market doesn’t care about how you feel, do what needs to be done. That’s it.