SaaS Interviews with CEOs, Startups, Founders
725: How This $3.5m Real Estate Guy Jumped into Group Coaching
19 Jul 2017
Chapter 1: What is the main topic discussed in this episode?
a great business in real estate sold that at about three and a half million bucks in deals there now doing a combination of group coaching plus incentive based help inside of folks launches and marketing funnels this is episode 725 coming up tomorrow morning you'll learn from heather marie they're doing 500 grand per month and she says the key is minimizing expenses but first here's today's episode
This is The Top, where I interview entrepreneurs who are number one or number two in their industry in terms of revenue or customer base.
Chapter 2: How did Charlie Gaudet transition from real estate to coaching?
You'll learn how much revenue they're making, what their marketing funnel looks like, and how many customers they have. I'm now at $20,000 per top. Five and six million. He is hell-bent on global domination. We just broke our 100,000-unit soul mark. And I'm your host, Nathan Latka. Hello, everyone. My guest today is Charlie Goddard. He's the bestselling author of the Predictable Profits Playbook.
He's a keynote speaker and creator of the Predictable Profits Methodology, the most reliable way to systematically generate predictability. We'll be right back. 50 industry influencers. Additionally, you don't want to mess with them. He's a CrossFitter, Brazilian Jiu-Jitsu fighter, and three-time wrestling state champion.
He lives in his New Hampshire home with his beautiful wife, three adorable kidpreneurs, and one badass dog. Charlie, are you ready to take us to the top? You got it, my man. You got it.
Chapter 3: What drove Charlie to increase his hourly consulting rate?
Am I hired? Was that a good intro or what? You know, I'm honored, man. I'm honored. That was great. So we had you back on in episode 343, and we talked about really how you generated fairly quick revenues in your real estate business. To just quickly tease that episode, just tell me real quick, what's the size of that business in 2016? Just real estate, top line revenue for you.
Well, I'm no longer in real estate at the moment. What did you grow into before you got out of it?
Chapter 4: What is the incentive-based model Charlie uses for coaching?
Right. So I got out of that business, actually, back in 2006, thereabouts. And I created a number of different companies.
uh proprietary stock trading company i just want i just want to tease that last episode for people looking at getting in real estate what did you grow your real estate company to before you got out of it uh probably about three three four million something like that and how many units managed and owned we did 30 uh build two homes and 30 homes uh build two roads and 30 homes two roads and 30 homes
Two roads, right. So we built neighborhoods, roads, the whole deal. Got it. All right, good stuff. That's episode 343. Today, what we want to focus on is how you, through your consulting work, are helping other folks grow their top-line businesses.
Chapter 5: How has Charlie structured his coaching business for scalability?
So the obvious question I always have, Charlie, with folks like you, is you've made money in real estate. You've had success. Why go consult and help other people? Why not just get in and do it yourself and start your own new business? You know, the thing with the real estate development business was that... For me, I just wasn't having fun.
And that's why I kind of wanted to get into something a little different. I've been an entrepreneur since the age of four. And so I've been always growing businesses and various different businesses. And it just sort of came to me where somebody came over to me and offered to pay me to help them grow their business.
Chapter 6: What successes has Charlie seen with his clients in the financial space?
And so I realized, huh, you know, this is something I've been doing all my life. I could probably actually make a business out of it. What do they pay you? At the time, it was $500 an hour. And what year was this? Uh, 2009. Okay. So 2009, 500 bucks an hour. How did you get comfortable on that number?
By the way, it makes me sick thinking about selling any amount of my time for any amount of money. Uh, just like the idea of a call every Tuesday at 3 PM just makes me sick inside. How'd you get around that? Well, actually, I wasn't planning on it. So that's why I accepted the $500 an hour. But eventually, what ended up happening was that I went from $500 an hour.
And when I looked at the upside and profits that I was bringing other businesses, I changed my model eventually from I was at $5,000 an hour. Then I went to $2,000 an hour. Then I went to $2,500 an hour. And I'm like, you know what? The problem is, is when I design a strategy that actually works really, really well, there's a value imbalance.
Chapter 7: What challenges does Charlie face with incentive-based coaching?
So they could spend $25,000 with me and end up making $1.1 million, which has happened. Not paying $25,000. I actually changed my model in that case. So I became an intellectual capitalist. And so I would design a strategy. and take a percentage of the upside in profits. And so that's what I had done for a long time. And I actually ended up getting paid a lot more as a result.
So as opposed to being charging by the hour and feeling like I was a salesman.
Chapter 8: How does Charlie ensure accountability in his coaching model?
I took a percentage of the increase in profits and one client alone just through that model ended up paying me over a million and a half dollars. So if we look back at fiscal year 2016, how much money did you make off hourly consulting versus the incentive structure kind of relationships you agree where you got paid off, you know, top line revenue increases?
Uh, well in early in 2016, yeah, last year, Uh, 2016 on a percentage basis, I would say actually 90% of my income was performance based, um, back in 2016. And then, uh, the rest of it was more, uh, court group coaching type stuff, which actually funny as it may be, that's what we're talking about where the largest percentage of my income was. In 2017, we're going for a more scalable model.
So 2017, we're looking to expand more of our group coaching type models because it's more scalable, requires less of men. Why not apply this intellectual capital you have, though, just at bigger companies where the top line increases they're going to get from your new system are going to be 10x, right? Why not do that instead of expanding your group coaching program? Yeah.
If it was all because of the money, then you would be right. But I look at a business and say, you know what, if the business is going to be too dependent on me, that's not good for the long term either. So I'm building a business that is not as dependent on me and more scalable. Group coaching is pretty dependent on you, though.
Well, it is, except I can train because I can build systems around my coaching models. I can package my IT into videos and training modules and so forth. And I can bring in other experts to, let's say, on one week, we're going to conquer Facebook marketing.
I can bring in an expert on Facebook marketing and discuss Facebook marketing, as opposed to me, who actually, with the intellectual capital, I have to design everything and create all the strategies and write all the emails and write all the campaigns and everything else. Does that make sense? Yeah. So can you give an example of, I understand the group coaching model.
Tell me the other side of the model. Is there a customer you can talk about, about what you did for them? Well, I'll tell you that one of my clients, this is, well, I'll tell you the two most recent examples.
So last week, we have a client in the financial space, and we created four emails in a financial space for a 12-hour promotion, and the four emails made $212,000, which was, this is a company that is just a, you know, it's a small business company, right? So, you know, they do just mid seven figures a year. So $212,000 in 12 years and 12 hours is pretty impressive.
But that's in the financial space. A couple of weeks before that, we worked with a company who was selling to lawyers. We did a very similar thing, ran a promotion, four different emails, and they brought in another $200,000. Just typically more money than they would see in several different months combined. And you're getting a cut of the top line revenue just from writing these email sequences.
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