Stop selling to this market

You need to stop selling to coaches and consultants. So the industry you sell to dictates how successful you can even be at all. It determines what the cap is going to be and more importantly, where you're going to hit that first, like, stall amount. So what I notice is a lot of people who sell to coaches and consultants, it's very difficult to get past the $100K or $200K a month. And this video is going to really show you why. And we're going to walk through some different industries, why you have these problems occur at all. If you don't know me, my name is Daniel Fazio. I run two companies, Client Ascension and ListKit, and we do around $1.2 to $1.4 million $1 million a month right now. We've made about $30 million since we've made these companies. And I've worked with a tremendous amount of people trying to scale their companies. And it's pretty interesting to see that, especially nowadays, everyone trying to sell to coaches and consultants, they stall out super quickly. Walk through like why this is so important, because probably like 90% of you watching this are literally trying to sell to coaches and consultants. But the reason why is because that's the industry you're in. That's the industry that you're aware of, like you are the audience. So it's easy for you to speak the language and understand them. And all the skills you have are around like getting results for that type of business. It's like it's what you know how to do. However, the problem with this is that online business coaching and the consulting market is only about $7 billion in size per year. Okay. If you throw in business coaching into that, like proper, like corporate business coaching, that's another $20 billion. So generously, it's like a $27 billion market. And to give you context to that, if you go on Google, you're going to see that the insurance industry is $7 trillion. That's 260 times larger than coaching. So it puts it into perspective, just like how like minuscule of a market it is. Like, the problem with selling to coaches and consultants is that there aren't enough of them. There's just no coaches and consultants to sell to. There's just not a lot of them that exist, right? Then factor in the fact that every person you know who runs an agency or their own offer is almost certainly selling that same industry. So there's a tremendous amount of competition among a very small pie, right? If there are 5,000 people in internet marketing space selling to coaches and consultants, that leaves on average $1.4 million per year per person. But we know that only 20% of the people make 80% of the money and it gets even worse than that. And then like 20% of that 20% makes 80% of the money. So that means that the median person is only going to cap out at $87K a year or $7,250 a month. And that's revenue, not even profit. So that's actual poverty. That's not good. This reflects in advertising as well. So I regularly have clients who want to sell to coaches or consultants or agencies because that's what they're familiar with. However, all coaches and agencies are over-indexed on marketing themselves or they wouldn't be in that industry. So which means 3 things: there's an abnormally high amount of competition, the competition are all hyper-competent people, so they're super competitors, and the market already thinks they know how to do the job that you're trying to sell them. This is why most people marketing to this industry will see shit like $600 to $800 cost per qualified call if you have like a standard offer and cost to acquire a line of like $4,000 or $5,000. That's just like for standard offers. Obviously this can be better if you have really, really, really good offers, but like a normal person, like that can be the kind of shit you see where it's like you just got a normal-ass kind of offer you're selling, you know what I mean? This doesn't mean it's impossible to run this business. It just means that you need to compensate by having an extremely high client LTV to offset CAC, which is doable. It is. But the cool thing about life is that you don't have to do things things that are difficult. You can just do things that are easy instead, and it's super awesome, and you can make more money with less effort, right? Like, for instance, selling your offer to a larger TAM, right, which means total addressable market. This is basic economics. Like, if you increase the demand by selling to more TAM— because there's not a lot of coaches and agencies— if you sell to more markets, more industries, demand goes up. There's more people demanding the services, right? So if you specifically are going to sell into industries that are not over-indexed on having coaches and consultants and agencies sell into them, it's very easy to make declined amount of money for a declined amount of effort. It's very basic economics here. So the best place to own an apartment complex is in a city with the maximum amount of population with the smallest amount of housing supply like that, assuming high incomes. But again, it's basic economics. There's— you got less competition and more demand, therefore prices go up. That is how the world works. If you want to decrease the price of housing, what do you do? You don't make rent control, you build more housing. It's really that That simple. Nothing can escape the nature of economics. It's just how the world operates, right? You can't fight against it. So some of you guys watching this run some pretty established offers, but it's locked into the coaching or consulting industry as a feature, which is super unfortunate. So you got to figure out a way to branch past that. So like I'll give you, for instance, I just had a one-on-one call with a guy who sells a DM setting, like a done-for-you DM setting as a service. This product fundamentally only works to coaches and consultants, and that's because only coaches and consultants are the ones selling high-ticket offers in Instagram DMs. It can maybe work work for some other industries like high-end health, but the TAM is probably going to be really small. So my recommendation to him was that he needs to sell phone setting as a service instead, because then he can sell phone setting as a service to other markets, like all B2B companies. He can sell that to like every single company that operates on sales calls. So he like 500x's his TAM. It just makes everything easier, right? Can't rely on Instagram. So those of you who don't know, we also run ListKit. It's a B2B SaaS company that also sells done-for-you services. So we sell a done-for-you cold email offer and a done-for-you cold cold calling offer. We sell to every B2B company as our TAM, all of them. Even to take the distribution, because any B2B company we sell to, like, if you were to take the distribution of the types of clients we sign, coaches and agencies are like less than 10% of the people who buy. Now imagine if we were only selling to coaches and agencies. The company would be 1/10 the size. You get what I'm saying? Like, it's really that simple. It's really just as straightforward as that generally. You need to increase the demand, you know what I'm saying? Expand more, make the market bigger. Like a lot of you guys, like, fundamentally don't understand how small, like really exactly how small of a market coaches and agencies are. There are not a lot of them. There just are not a lot of them at all. It's really bad and there's just so many people trying to sell to them. So I've had numerous clients buy one-on-one calls with me or come through my Mastermind Olympia who have also instructed that in order for them to scale logistically, they must expand their team. Like we just had an in-person event at Olympia and one of the guys is running a cold email email agency, like we're just talking about business. And I was explaining to him like that same thing I just conveyed to you, that less than 10% of our clients are the cold email offer, our agencies. You send a cold email offer to only agencies. He's like, dude, the cost per call is really high. And I was like, yeah, bro, you can't only sell to agencies because the TAM is too small for the amount of people who try to sell into them. You can't do that. Trying to sell to coaches, agencies is going to give you a cost per call that is way too high for what a lot of people are comfortable with. Like, it's pretty regular for a standard, not magnificent offer, like a normal business to just have $600 to $800 cost per qualified calls. In that market. It's so small of a market. It's a really huge problem. You have to expand out and sell to more people. Somebody in this situation normally only has two options. It's either expand TAM or keep same TAM, but understand that your CAC is going to be extra high. You have to expand LTV to compensate for that. So you need deep upsell offer where it's like you got to have like some percent of your clients who have an LTV of like $100,000 or $200,000. That's really the only way to scale an agency like that or selling to that market is really the only way. So just help you understand, here are some insights that Claude was able to pull for me. So I had to make an fact. And this is super interesting to see. Now, this obviously is not 100% accurate data, but it's collected from Clutch, Design Rush, IBISWorld, GoHighLevel, Shopify, Klaviyo, Mordor Intelligence, Grand Review, and just shit like that. It just pulled it from those sources, right? It's interesting to see this. So if we sort this by market size, you can even see like this says insurance is $1.5 trillion, but it's like if you Google that, it says $7 trillion. I think it might be only United States. I don't know. But like the premise stands is that if you were to look at this like, okay, like real estate and property management, for for instance, is $1.7 trillion, 3,800 agencies that specifically sell to them. So it's like, that's 2.2 agencies per billion dollars, you know what I'm saying? So like, the growth barrier here is like $447 million a year per agency for them to capture, like, of like management revenue, you know what I mean? By that, it's like the median agency Pareto distribution of them would be managing 34, or like have control of $34 million of that. That's how this works. So it's like, you can sort this by agencies per billion. So like insurance, there's like not a lot of agencies that sell insurance, right? Then logistics and supply chain, 0.6 agencies per billion. Investment banking, 1.7 agencies per billion. Legal services, 2.9. But there's a caveat here where it's like not all of these people are like good to sell agency services specifically to. Like, for instance, like real estate agents, fucking terrible market to sell to. If you were to be doing like capital raising for real estate, like that's a fucking awesome offer to have under your belt, whether you're advertising or doing lead gen for it or something like that. Different types of insurance, different types of logistics and supply chain. You get I'm saying there's different kinds of regulation, like special specialized knowledge that you might need to possess in order to be able to sell to investment banking and M&A. There's always a barrier in some business. Like, every business is hard. It has its own problems. If you have marketing skills and you're currently selling to coaches and consultants and agencies, the hard part about your business is that it's just hella competition. That's the hard part. If you were to switch to investment banking and M&A, it's like, wow, it's going to be really hard to figure out how to do that and navigate all the regulation and shit. Like, that's the hard part. There's always a hard part in every business. Like, there's just some hard part that exists in each individual business. There's no business that's profitable and easy at the same time. There's just a hard part that exists in different in different businesses. It's just interesting to see though where it's like there's $120 billion and like coaches is like fucking $7 billion. It really puts it into perspective. There's just industries like home services is $650 billion. Amazon's revenue is only $15 billion. It's not— it's saying like of the independent sellers that you could sell to, collect retainers from. B2B SaaS, $390 billion. Now like this is e-commerce and DTC, $240 billion, but it's 22.9 agencies per billion. Coaches and training, $20 billion. And it's 140 agencies per billion. So it's like you can just see like it's going to be substantially easier to scale the business. And like, yes, there's a hard part to it, but you hit is going to take substantially longer to hit in terms of like client acquisition. You get what I mean by that? And I'm just trying to show this to you to open your eyes to the fact that like there's just hella more people that exist besides agencies and coaches and consultants. For instance, if you go to my YouTube channel, you find this video, how to use AI to find profitable niches that aren't saturated. Created. There's a list of 500 different niches inside there. Now, industries are made up of niches, so it's like all the niches belong to a specific industry. But even in there, I talked about, dude, stop selling to coaches and consultants. Like, stop doing that. Like, that's not what you want to do. Like, stop just doing that. So hopefully you're thinking about, like, what you can do to either expand your TAM and sell your stuff to other people, or you've got to change your offer. If your offer can fit to selling to other people, expand the TAM out. Just— your life is going to get easier when you expand the TAM out. If your bottleneck is not client acquisition, then this whole thing doesn't apply to you. If your bottleneck is fulfilling for clients because you have too much demand, then fucking keep extracting as much of that as you can and then worry about it when it becomes a problem. It will one day, but right now it might not be the problem for you. You know what I'm saying? Okay, so if you want my help scaling your business, I have a couple of different things that you can check out. So the first is if you're kind of a beginner and you want me to help you build an AI marketing agency where we show you what to sell, who to sell it to, how to get clients, and how to fulfill for those clients by using AI, the first link in the description would take you to go.clientascension.ai. This is what this looks like. You go here. If you make above around, say, like $25K a month, you should check out our Mastermind Olympia. Where we show you how to scale your offer and sign 10 to 15 new clients per week with ads and develop a cold traffic offer that actually scales to cold traffic. That's what this page looks like. Uh, you'd go here, you'd watch the explainer video, put your name, email, phone number in there, takes you over there. If you want to get a one-on-one call with me, that'll be the link in the description as well. It's danielfazio.io. That's what that looks like. You click right here and you can get that. And then we're doing a Scaling with Ads workshop soon. This is a 4-day live challenge where we're going to show you how to sign clients with ads. That's what this looks like. This is for people who can afford to spend $2,000 to $3,000 on ads upfront to acquire a client, because that's just what it costs to to get a client with that. So if you can't afford that, this is not for you and you should consider going here to build an AI-assisted agency instead, where we show you how to get clients with cold email and AI Dream 100 and stuff like that. So check that out. And if you also want to watch some case studies about other people who've got results buying those offers I just showed you, you can check that out over here. So you go to my channel, you do case studies. I'll leave this link to the description. You can watch actual stories of people who started from nothing or something, did apply some of the stuff I'm teaching them. You'll see what they sell, like what apply to get the result, hear their whole stories and like how they're actually building their company. So you can check that out as well. And if you got any value from this video, leave a like, subscribe, comment, all that nonsense, all that jazz. All right. Peace. Love you. Bye.