I think you should be reselling global talent

"Superior sales and distribution by itself can create a monopoly, even with no product differentiation.

The converse is not true.

No matter how strong your product—even if it easily fits into already established habits and anybody who tries it likes it immediately—you must still support it with a strong distribution plan."

Peter Thiel said that, and I think it is smart as hell.

It reminds me a bit of the old military one as well:

"Amateurs talk about tactics, but professionals study logistics"

I’ve been thinking a lot about global talent distribution lately.

Finding customers, at scale, predictably.

So much of why sub - $50mn companies don’t use global talent is because they simply don’t know about it!

If you examine the rise of Support Shepherd (which @sweatystartup publically projected will do $20,000,000 in revenue this year) what did they figure out better than anyone else?

It wasn’t product innovation.

It wasn’t customer intimacy.

It was distribution innovation!

Using Huber( and now Shaan from My First Million) to drive top of funnel was a brilliant distribution strategy (although expensive, in the form of equity).

I don’t know if it will scale though.

Can’t give equity to every referral partner.

I’ve been tracking Support Shepherd’s recent launch of Facebook/IG ads, and their referral program that pays $250 per successful hire… I have my doubts…but fortunately for them, they are printing cash and can spend some money to learn.

They have enough cash to figure something out, and they are sharp guys.

So if the product isn’t innovative, the distribution is - it begs the question, what other forms of global talent distribution innovation are available?

I’ll give you one small example - that I know is already working (we have people doing it….).

Using self-funded searchers (who haven’t acquired yet) to distribute global talent.

Why?

All they do all day is conduct outreach to small business owners.

Send cold emails.

Network.

Have meetings.

Instead of only having “one thing in the briefcase (buying they company), why not also have an easy to fulfill global talent offer?

“Hey Bob, it seems like your janitorial company is wonderful, and so glad to get to know you over lunch. I know me buying the company isn’t on the table, but I couldn’t help but notice (insert actual observation that global talent solves). I’d love to help you find someone at 70% of the cost of a local employee”.

BANG.

Distribution.

How do the searchers do the fulfillment?

Easy - join Passport.

I can do it for you.

Charge 35% headhunter fee (current market pricing) - and your breakeven with Passport is 2 hires over the year, and the rest are all margin.

That’s real money!

Do 10 in a year, you might even save up the equity contribution required on your SBA loan, while developing a skill set that will be useful post close.

You don’t even need to join Passport until you have a business owner on the hook!

Just grab a video from our site, show it to any business owner you know and say

“Interested? He is $900 a month, full time”.

That is catnip.

You sell one a month, you have a solid freaking business… with no lease, no loans, nothing.

If you are ambitious and energetic, an opportunity comes up like this every so often.

I go into detail on this only because with the margins associated with global talent, so many people should be selling it, that currently aren’t.

It should be like tupperware parties in the 1970s - invite people over, have some wine, and sell some global talent.

The economics are crazy strong…. for now!

Anyhow, I mention all that to open your eyes to the upcoming wave.

We are already working with franchisors, PE shops, multi-unit franchisees, and many many more - all of whom are both using it in their own operations, but also as a tool to augment their investment strategies and value propositions.

Would love to banter with you if you are interested, or if you think I’m wrong!

Drop me an email, I read them all.

Yallah Habibi,

Jon

Passage of the Week

This show, and this episode in particular made me break out in cold sweats - but adequately captures the life of an entrepreneur: