Neil Patel
👤 PersonAppearances Over Time
Podcast Appearances
they're not going to usually do well with money because most businesses, unless you're trying to create like an open AI where you need tons of data centers and computing power, you can just get something out there and figure out ways to get the money. For example, don't eat out as much for a few months and use some of that money to start your idea up.
they're not going to usually do well with money because most businesses, unless you're trying to create like an open AI where you need tons of data centers and computing power, you can just get something out there and figure out ways to get the money. For example, don't eat out as much for a few months and use some of that money to start your idea up.
If someone's not willing to go above and beyond to just get something out there and get traction, they're not going to do well with someone else's money. They're more likely to just burn it.
If someone's not willing to go above and beyond to just get something out there and get traction, they're not going to do well with someone else's money. They're more likely to just burn it.
Yeah.
Yeah.
Yeah, so first off, you got to hit up companies and a lot of them don't want to sell. The ones you want to buy, a lot of them will not want to sell. And the way we look at it is it's math. And in private equity, they have the saying one plus one equals three. So how can you combine what someone else has and what you have and make more money than the combined entities?
Yeah, so first off, you got to hit up companies and a lot of them don't want to sell. The ones you want to buy, a lot of them will not want to sell. And the way we look at it is it's math. And in private equity, they have the saying one plus one equals three. So how can you combine what someone else has and what you have and make more money than the combined entities?
So a great example of this is we're in call it 20 countries. If we get a lot of customer demand for, let's say, the Middle East, which we're not big in yet, and we find an agency that we like in the Middle East, if you're listening, we are actually looking for agency in the Middle East. we would be like, all right, if they're at, call it 10 million in revenue to keep the math simple.
So a great example of this is we're in call it 20 countries. If we get a lot of customer demand for, let's say, the Middle East, which we're not big in yet, and we find an agency that we like in the Middle East, if you're listening, we are actually looking for agency in the Middle East. we would be like, all right, if they're at, call it 10 million in revenue to keep the math simple.
And let's assume we're at 90 million to keep the math simple. Cause 90 plus 10 equals a hundred. Our goal would be to go from a hundred to 110 with the acquisition. And I'm making up numbers that are just random numbers, but let's say we have a lot of customers. and they want Middle East marketing, but we don't offer that.
And let's assume we're at 90 million to keep the math simple. Cause 90 plus 10 equals a hundred. Our goal would be to go from a hundred to 110 with the acquisition. And I'm making up numbers that are just random numbers, but let's say we have a lot of customers. and they want Middle East marketing, but we don't offer that.
What we would do is we would say, hey, we're going to take all our customers and sell them now on the Middle East region. And that company offers it. So we predict we can make extra four or five, six, seven, eight, 10 million in extra revenue. We then also look at their customers and say, huh,
What we would do is we would say, hey, we're going to take all our customers and sell them now on the Middle East region. And that company offers it. So we predict we can make extra four or five, six, seven, eight, 10 million in extra revenue. We then also look at their customers and say, huh,
if we can generate five million revenue from sending our customers to the middle east and take their customers and we look to see if there's demand for their customers to want marketing in america or other parts of europe or latin america or asia and we're like okay if we can estimate we can bring five million there you combine both you're generating more revenue
if we can generate five million revenue from sending our customers to the middle east and take their customers and we look to see if there's demand for their customers to want marketing in america or other parts of europe or latin america or asia and we're like okay if we can estimate we can bring five million there you combine both you're generating more revenue
Then we start looking, saying, oh, you have a CFO. We don't need a CFO. We already have one. Oh, you have a head of HR. We don't need a head of HR. We already have one. So you start figuring out cost synergies and savings too. So you're adding more revenue. You're becoming more efficient in saving money on the cost end. That's how we decide what to buy.
Then we start looking, saying, oh, you have a CFO. We don't need a CFO. We already have one. Oh, you have a head of HR. We don't need a head of HR. We already have one. So you start figuring out cost synergies and savings too. So you're adding more revenue. You're becoming more efficient in saving money on the cost end. That's how we decide what to buy.
The other type of company we look to buy is not necessarily regional based. It is, let's call it industry specific based. So let's say we only offered SEO and we offer more than that, but for this example, let's just go with that. And let's go back with, let's hypothetically say we make 90 million a year. And let's say someone else offers paid advertising services and we don't.
The other type of company we look to buy is not necessarily regional based. It is, let's call it industry specific based. So let's say we only offered SEO and we offer more than that, but for this example, let's just go with that. And let's go back with, let's hypothetically say we make 90 million a year. And let's say someone else offers paid advertising services and we don't.