How It All Started
Before the pandemic, I had built Pocket Your Dollars into a flourishing business. I wasn't just involved in the day-to-day; I was focusing on scaling and strategic growth. We were doing quite well, making multiple millions, and growing steadily. Our business model was centered on driving consumer-initiated phone calls through paid social media campaigns, which not many people were doing at the time.
I had previously run a traditional internet marketing agency, where we experimented with a unique pricing model. We charged a flat fee plus a percentage of profit share. Initially, I doubted our ability to track the profit share accurately, but it turned out to be a game-changer. Receiving my first substantial commission check opened my eyes and showed me the potential in productizing services.
The Shift to Pay Per Call and Overcoming Challenges
The transition to pay per call was driven by the realization that while form fills were good, inbound calls could potentially hold more value. But this shift presented its own set of challenges. Initially, our buyers were skeptical about the quality of leads from social media. The industry at the time undervalued social media-generated calls, so we had to work hard to reorient and educate our call center partners on handling these new types of leads.
One significant hurdle was aligning the incentives for call center reps. They were accustomed to leads from traditional sources, like Google AdWords or direct mail, which usually yielded higher quality. We had to work with our partners to create new commission structures that would accommodate the leads generated from social media.
Balancing the Agency and Lead Gen Business
I kept my digital marketing agency running while I transitioned into pay per call because I wanted a smooth transition. My approach was methodical: as the lead gen business grew, I gradually reduced my agency commitments. I’m so grateful for this transition period because I was able to learn and refine our strategies without pressure to succeed immediately.
My brother stepped in to run the agency during this time, allowing me to focus more on the burgeoning lead gen side of the business. This period of dual management was both challenging and rewarding. It allowed me to apply my learnings from the agency, especially in managing client funds, to my new venture.
Balancing Health and Work
During the transition and growth of my business, my physical health remained a priority. However, I can't say the same about my sleep and mental health. Especially in those early transition years, I tended to overlook the importance of taking time to pause and be calm. It was only in recent years that I made a conscious effort to prioritize these aspects of my health. Scaling a business like this, especially in the beginning, is mentally and physically taxing, so I really needed to shift my priorities.
Building a business is kind of like losing weight. The first few pounds are the hardest. I think the tough beginning is when many entrepreneurs falter or get stuck. The challenge is transitioning from being a solopreneur to building a team and then eventually extracting oneself from the day-to-day operations. The key is to persevere through the early days, learning and growing from the experience. It’s too easy to become jaded due to early setbacks. After getting burned a few times, it’s easy to become risk-averse. But to succeed and grow, we have to be willing to 'touch the stove' again. It’s about learning from mistakes and continuing to take calculated risks.
Great Big Lessons
One of my biggest lessons was learning to delegate and let go of control. Early on, a mentor told me that it’s unrealistic to expect to hire someone as good as you. Instead, find someone about 70% as good. This advice significantly reduced the pressure and allowed me to be more accepting of my team’s efforts, even if they weren't perfect.
Another key aspect of growth is the willingness to invest in the business, even if it means short-term losses. In my case, I set aside a portion of the budget explicitly for testing new ideas or strategies, fully prepared to not see immediate returns. This approach led to discovering new platforms and angles that significantly contributed to the business's growth. It’s about having a long-term vision and not getting caught up in the short-term gains.
Lastly, embracing an abundance mindset has been pivotal. In the early stages, it's easy to get caught up in immediate profits and become shortsighted. True growth and success come from looking beyond the immediate horizon, investing in oneself and the business, and being open to new opportunities and risks.
Facing the COVID-19 Challenge
When COVID-19 struck, I faced one of the biggest challenges in my entrepreneurial journey. Half of my business vanished overnight! It wasn't just about my livelihood at this point; it was about the livelihood of my eight full-time employees. I had to step up and make critical decisions in spite of the panic and uncertainty around every corner.
I remember calling Adam from Ringba, to see if he had any advice or new opportunities. He suggested exploring areas like ACA, Medicare marketing and auto insurance. This was a pivotal moment, and I’m so grateful he shared that with me. But the most significant call I made was to my team. I assured my team that their jobs were safe and asked them to lean in and work a little harder so we could not just survive, but grow during this crisis.
As a leader, my job is to instill confidence and motivation in my team. I wanted to transform their fear into a drive to build something even bigger and better. The goal was not just to return to where we were but to surpass our old achievements. This mindset shift was crucial, it’s not inspiring to aim for a past state; true motivation comes from the desire to achieve new heights.
Rapid Growth and Success
The response from my team was incredible. They shifted from fear to confidence, from stability to motivation. In just 63 days, our Medicare business replaced the run rate of the business we lost to COVID-19. This new venture eventually caught the attention of a public company, leading to a significant acquisition. They were interested in the Medicare business we had built during the pandemic, not the assets we had been running previously.
This experience taught me the true value of resilience and an abundance mindset. Difficult times can shape and strengthen us, like diamonds formed under pressure. Embracing this mentality and instilling it in my team was not only fulfilling but also instrumental in our success. It's a testament to the power of positive leadership and the relentless pursuit of growth, even in the most challenging times.
Embracing Fear and Moving Forward
Yes, I was fearful during the COVID-19 crisis, and doubt crept in numerous times. But I firmly believe that courage isn't about the absence of fear; it's about feeling that fear and pushing through it anyway. If you succumb to fear, you've already lost. I held on to the saying, "He who says he can and he who says he can't are both usually right." I knew that if I gave in to those negative thoughts, I wouldn't be where I am today. Feeling the fear and moving forward is what I believe sets the stage for success.
Support from Mentors and Peers
I am grateful to have had mentors and a business partner who shared a similar abundance mindset. Their support and perspective were invaluable during this turbulent period. I also actively feed my mind with motivational, positive thinking, and psychology resources, which bolstered my mindset.
To this day, I attribute much of my success to my involvement in peer-to-peer learning groups. Joining these groups has been a pivotal part of my journey. It has given me the opportunity to grow alongside others, learn from their experiences, and gain insights that have been vital in shaping my entrepreneurial path. The collective knowledge and support from these groups have been cornerstones in navigating both my professional and personal life.
One key support system for me was being part of the Entrepreneurs Organization (EO), a peer-to-peer learning group. This group was instrumental, especially during the pandemic. It's a diverse mix of business owners - from plumbers to HVAC specialists to internet marketers like myself. Being in EO provided me with a sense of alignment with others facing challenges and hope from those who were thriving despite the circumstances. It offered a platform for shared experiences, collective wisdom, and guidance from those who had navigated similar paths.
Leveraging Ringba's Insights for a Strategic Shift
During the COVID-19 crisis, Ringba played a significant role in helping me navigate through the challenging times. They were more than just a telephony provider; they were true partners in every sense. Adam and his team at Ringba didn't just offer a platform; they provided guidance, support, and even brainstorming sessions. This support extended well beyond what one would typically expect from a business relationship. It was their commitment to excellence and partnership that truly stood out.
The pandemic forced me to change my business direction significantly. Ringba pointed me towards more lucrative verticals like Medicare marketing and auto insurance. This shift was more profound than it might seem on the surface. It was a lesson in focusing my energy on opportunities with higher potential. I realized that it takes about the same effort to run a $50 million dollar company as a $10 million dollar one, a realization that has had a lasting impact on my business philosophy.
The challenge as a marketer is that you can market anything, which is both a blessing and a curse. It means you have to be very discerning about where you put your energy. During the pandemic, I could have jumped into the booming mortgage refi market, but I understood it was a bubble and chose to focus on the more sustainable insurance market instead.
Landing Enterprise-Level Contracts
My approach was primarily focused on building direct relationships with major clients rather than relying heavily on networks. While networks are great for filling gaps, the core strategy was to establish direct relationships with major carriers like UnitedHealthcare, Blue Cross Blue Shield, and Humana. It was quite a leap for a small team, often working out of a coffee shop, to secure contracts with such big players.
The journey to these enterprise-level contracts was grounded in thorough research and a deep understanding of the industry. I hired employees inside these insurance companies to consult with me, not for direct connections, but to genuinely understand the Medicare product. This approach ensured that our marketing efforts were aligned with both the product and the consumer's needs. It was during these consulting sessions that opportunities to pursue contracts emerged, leading to significant deals that provided stability and predictable revenue streams.
The Shift from Marketer to Manager
One of the most significant changes in my journey was transitioning from a marketer to a manager, and eventually to an entrepreneur and investor. Initially, I was deeply involved in the operational aspects like media buying. But I quickly realized that the true value lies in building relationships and securing contracts, not just in executing marketing campaigns.
To focus on these higher-level objectives, I had to learn to manage teams effectively, nurturing and growing talent within the organization. This shift required a different skill set - one that moved beyond the technicalities of marketing to the nuances of leadership and strategic planning.
Embracing Growth Beyond Financial Success
Selling my company for $50 million was a monumental moment, but not for the reasons you might expect. Honestly, the entire process started as a learning exercise. I was curious about what investment bankers did and what they could offer. Initially, it felt more like a free educational opportunity rather than a serious business transaction. I was thriving in my business and wasn't motivated by the idea of selling and getting rich.
But as I navigated through the process, my perspective shifted. I received feedback from potential buyers that was invaluable. It allowed me to refine and diversify my business significantly. By the time the sale was finalized, the company I had built was quite different from where it started.
Believe it or not, when the wire hit my account, confirming the sale, my life didn't dramatically change. I didn't radically alter my lifestyle. Actually, I didn’t change a single thing! Instead, I smiled at the achievement and continued with my day. It was a testament to the fact that my journey was never about acquiring wealth for the sake of luxury, but about growth and passion for what I was doing.
Currently, my focus is on investing and participating in projects that excite me, like working on virtual group therapy projects for seniors. It's less about financial gain and more about making a meaningful impact. I also see this phase as an opportunity to help friends and family achieve financial freedom.
For those looking into using Ringba or growing their businesses, my advice is to view software not just as a tool but as a long-term partnership. Building relationships with software providers can open doors to new opportunities and insights that go beyond the technical aspects of the tool.
And to the next generation of entrepreneurs, especially in affiliate marketing, I encourage you to think bigger! You were made for more than just chasing dollars. Marketing is a crucial skill, but coupling it with business acumen can lead to significant achievements. Embrace your potential to create impactful businesses, not just profitable campaigns. Remember, growth and purpose are what bring fulfillment, not just financial success.