Matt Ryder warns that 22-year-old online hustlers making six figures monthly don't understand gross versus net margins, tax planning, or legal risk. They know sales and marketing but lack the backend infrastructure needed to actually scale. One client doubled revenue but faced mounting tax liabilities and legal exposure.
You've got this reinvigoration of the online education space bent itself towards young people. So all your leaders in the space are like 22-year-olds that are making 6 figures a month. The problem is that like they have no fucking clue how to scale a business because they've never run a business. It's just sales and marketing coaching. One of our clients, we doubled their business. They're all 22. And I was like, okay boys, what's your gross and your net margin? How much are you putting away for tax? What kind of company formation do you have? And I was like, okay, the administration of this thing will fall apart. Your tax burdens will be enormous. If somebody fucking sues you right now, you're both fucked, right? A lot of things that need to happen from a business perspective to scale this business, because scale is growth without extra work. All of your systems and processes and backend have to be in a really good spot.
