I came across his sort of bulk service brokerage model on one of his most recent videos and could use some feedback on its viability. As I am a skeptic. He was asked how he would rise again if he lost everything; his money and his popularity.
The concept revolves around partnering with local businesses, particularly those offering services like chiropractic care, massage therapy, personal training, etc. and negotiating bulk rates. The plan is to front the capital for marketing these services and then work on generating leads. For example, I'd approach a chiropractor and propose that if I can bring them a certain number of customers, say 100, within a month, what would be the lowest rate they'd offer per customer. The idea is to secure these services at a discounted bulk rate and then market them to potential customers at a slightly higher rate, but still less than the standard price, thereby earning a profit from the markup.
However, I'm concerned about the practical challenges, especially the costs associated with marketing and acquiring customers. Do you think this is a feasible model? Has anyone here tried something similar or have insights into how this might work in practice?
Marketing costs alone, especially digital marketing, could cost a lot more than you'd make by generating a lead and closing the deal alone. If the chiropractor offers a $30 discount, you MIGHT get one or two customers if you ran some facebook or instagram ads for the same price. In certain conditions, I've gotten ZERO leads with 30 bucks. If you were doing some solo street team work, sure, I could see it working; however, running those ads in my opinion could only be of benefit for the business themselves because at least they're building a reputation and generating some brand awareness.
Stuff like this makes me extremely skeptical on following the advice of any youtube guru at this point. It just solidifies in my mind the idea that most of these youtubers made money by selling courses. It just seems disingenuous.
If I'm wrong, I'd 100% love to hear why.
So groupon?