Why this is the best marketing agency to start in 2024 [CLIP]

0:00if you're a good marketer you would charge on performance right but most people aren't willing to take the risk this pay per performance agency why why is that a business idea that's exciting you right now because when I hear paper performance I'm like hasn't it been done before like why is paper performance an interesting startup opportunity right now I'll give you two stories on this one um so one of my friends his pay for performance agency does $80 million a year 30 million in profit and they have like 30 employees and it's like okay well that sounds agencies a boring business it doesn't scale well blah blah

0:35blah it's like no like all he does is he focuses on one industry and just runs paid ads he's really good at copyrighting they're really good at strategy he's his uh co-founder is Technical and they just build a lot of interesting things for people in that that industry and what they do is let's say you are in the finance industry I'll say okay well how much are you going to pay per customer like 500 bucks it's like okay we're going to run a test we're going to run some traffic towards you and if you like the customers we can continue the conversation but there's no need for long-term commitment you only

1:04pay us if we perform that's a good offer and my whole thing is as a marketer if you're a good marketer you would charge on performance right but most people aren't willing to take the risk um and I've always wanted to to emulate that model and so I don't think pay for performance will ever go away in fact I think you know we can go towards like smart contracts I think it's going to get even crazier right the best marketers are going to capture u a like even more value I also think that in like an AI world where an AI and just like data world the

1:36marketer has more data so they're able to underwrite yep and be like okay we're willing to bet on this particular opportunity right yep and here here's the other thing yes and like imagine all the stuff you're going to be able to build which you might get into but there's another pay for performance agency they focus on telecoms and um I think they're probably doing over a billion in Revenue now and one of the guys I used to work with at another agency a long time ago he was one of their early employees and they were like not really doing much at the beginning I think they were doing like a couple

2:06million dollars a year and then they started do this pay for for pay for performance thing tongue twister um where they would basically drive you leads through Google ads and then they get paid for the leads eventually what they did was they got bigger they started acquiring call centers and then they would basically just gift wrap a customer for you and then a bunch of private Equity like invested but they just gift WRA customer for like AT&T Verizon you know all these like T-Mobile and all that now um and so I think it's a big opportunity because there's not a lot of capital expenditures to set set

2:40it all up feel like a lot of people have done payer performance in the lead space is that correct like I Insurance lead sorry yeah yeah because like you want to go into a space where they'll pay you a lot for lead right so what other spaces would be interesting I think Finance uh depends on like you know I think there are are a lot of crypto companies reaching out to us right a lot of the biggest exchanges they all want to do pay for performance and you know there's money in crypto right um AI is a very broad space I think you need to focus on

3:09the actual industry you can't just say SAS or AI it's got to be like you know um for like hotels would be another example right it just wherever they're they're going to pay high CPAs right so you just make a list of industries that are paying high CPAs and then create a brand a landing page yep uh and you test it and like my friend by the way what he does is he creates a lot of different brands so he might have like 20 different websites like you know um California Hotel group or something or Florida hotel group and he just drives traffic there because like if I'm

3:43working with you and you decide you want to screw us or something sure you can cut us off but we'll just go to your competitor right and so the relationship is a lot more balanced now [Music] it's SI time baby