Jesse Pujji on Bootstrapping a +$1B Business + Selling To The Ultra Rich
27 Aug 2024 (20 days ago)
Unique insight + unfair advantage
- A business idea was developed after repeated requests for help with marketing analysis from private equity friends.
- The business, Ox Insights, consults for private equity firms, specializing in marketing due diligence and value creation.
- Ox Insights mirrors the business model of Accordian, a successful company that provides financial consulting services to private equity firms.
How Jesse bootstrapped Ampush using GLG
- By using GLG, a network of experts, valuable market research was conducted by connecting with digital ad experts and lead generation specialists.
- Through GLG, a $5,000 research report was sold multiple times, generating $150,000 in funding, which was essentially seed funding for their business.
- Ox, a consulting firm, positions itself as a more affordable alternative to traditional firms like McKinsey, charging $50,000 per week for a team compared to $200,000, while emphasizing their expertise in online marketing.
Digital marketing in masterclass in 3 minutes
- Businesses can be evaluated for acquisition by analyzing their digital marketing performance, particularly in areas like Facebook and Google Ads.
- This evaluation involves a two-pronged approach: a top-down analysis using benchmarks and data sources to determine expected metrics like click-through rates and conversion rates, and a bottom-up analysis examining the account structure, event match quality, and creative testing frequency to identify areas for improvement.
- A significant opportunity exists when a business exhibits success despite having subpar digital marketing practices, as optimizing these practices can lead to substantial growth.
How to sell to the ultra rich
- Individuals with significant wealth are often willing to pay high prices for information that can provide them with a competitive advantage in their investments.
- One strategy for identifying the needs of affluent individuals is to build relationships with them through shared interests or areas of expertise.
- When selling to a wealthy clientele, focusing on a niche market and limiting the availability of products or services can increase their perceived value and drive up prices.
Red Ventures' Playbook
- Red Ventures started in 2000 as a direct marketing company, primarily focusing on selling subscriptions for companies like DirectTV.
- Around 2005, Red Ventures capitalized on the rise of Google AdWords and SEO, becoming a leader in online marketing and lead generation.
- By 2015, Red Ventures shifted its focus to acquiring SEO content businesses, such as Reviews.com and Bankrate, using their expertise to significantly increase profitability.
The Four Big Levers
- There are four main levers used to improve businesses: traffic acquisition, on-site optimization, pricing, and lean staffing.
- Traffic acquisition involves improving both paid and organic traffic to increase the number of visitors to a website.
- On-site optimization focuses on making the website appealing and easy to navigate to encourage visitors to click on advertisements and make purchases.
Calling Zuck's cell
- A suggestion is made that instead of pursuing venture capital, individuals should consider acquiring and scaling businesses within their respective industries, potentially leveraging AI for process optimization.
- In 2005, an opportunity to purchase the domain name "hsfacebook.com" for $20,000 was declined.
- During a phone call, Mark Zuckerberg outlined Facebook's strategy, which included expanding from high schools to workplaces and other demographics.
Noah Kagan's $100M mistake at facebook
- Noah Kagan, an early employee at Facebook, was fired three months before his stock options would have vested.
- Had Kagan remained at Facebook for three more months, his stock options would be worth an estimated $100 million today.
- Kagan was fired for publicly discussing unreleased Facebook products while intoxicated at a party.
What's the thing you can't not do?
- A coach suggested an exercise of identifying the one thing you can't not do, which involves writing down a few sentences and revisiting them weekly to see if they resonate with personal growth.
- The speaker realized that their passion lies in helping others reach their full potential and achieve greater levels of success.
- Shifting the focus from business metrics to the growth and development of individuals brings more creativity, happiness, and flow to the speaker's work.
Nelly performs at Jesse's birthday party
- Nelly, originally from St. Louis, was a prominent rapper during the speaker's high school and college years.
- The speaker was able to have Nelly perform at his 40th birthday party after assisting Nelly's team with two e-commerce businesses.
- To accommodate Nelly's schedule, the speaker spent $60,000 to fly Nelly round trip on a private G4 plane from Napa to St. Louis, and then from St. Louis to Las Vegas.