In this engaging conversation, Chris Koerner, an entrepreneur with a background in pest control, reveals the surprising potential of convenience businesses. He shares insights on high-profit models, door-to-door sales, and the ethics of sales practices. Chris discusses how pest control can be viewed as a valuable service rather than just a necessity and examines the industry’s financial dynamics. He also highlights an entrepreneur’s success with a Christmas lighting business, sparking ideas on innovative ventures that can thrive in today's market.
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question_answer ANECDOTE
Summer Sales High Earnings
Casey made $100k in three months during his first year selling pest control.
Some salespeople reach seven figures doing summer sales, showing potential for high earnings.
insights INSIGHT
Pest Control Profit Margins
Pest control businesses have about 88% gross margin and 40% net margin after stabilization.
These companies enjoy 30% yearly growth and have very sticky, valuable recurring customers.
insights INSIGHT
Ethics Affect Customer Lifetime Value
Pest control contracts sold unethically churn fast causing low lifetime value.
Ethical sales yield high lifetime value with customers staying for years, impacting business value.
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Join me, Nik (https://x.com/CoFoundersNik), and my business partner Chris Koerner (https://x.com/mhp_guy) as we discuss the world of sales and unexpectedly profitable business models, such as pest control, a field Chris has personal experience in. We examine how high incomes can be achieved through door-to-door sales, as well as the financial dynamics of the pest control industry. We also discuss the compensation structure of sales crews and the potential of renting out specialized licenses. We explore the idea of pest control as a convenience service rather than a necessity, and share the story of an entrepreneur who achieved remarkable success with a Christmas lighting business.
Questions This Episode Answers:
How can door-to-door sales lead to high income, even seven-figure earnings
What are the underlying economics of a high-margin service business like pest control?
What are the less obvious revenue opportunities within established industries, such as renting out licenses?
How can one identify and capitalize on "convenience" businesses?
Share your ideas with us:
Nik@cofounders.com
Chris@cofounders.com
Enjoy the conversation! __________________________
Love it or hate it, I'd love your feedback. Please fill out this brief survey with your opinion or send me an email at Nik@cofounders.com with your thoughts. __________________________
00:00 Introduction and Personal Anecdotes 03:36 The Economics of Pest Control 06:45 Insights on Sales Ethics and Practices 12:12 Personal Experiences in Pest Control 15:50 Questioning the Effectiveness of Pest Control 17:15 Revelation: Pest Control is a Scam 18:08 The Convenience Business Model 19:22 Success Story: Christmas Lighting Business 24:46 Entrepreneurial Spectrum: Different Approaches 27:02 Learning from Mistakes: The Importance of Knowledge
Nikonomics - The Economics of Small Business