Transcription
First of all, sorry my English is not my first language. I try my best to explain what I do. Uh, so I run a software company called Sub Magic. And basically, what we do is we help creators make more captivating short-form content, uh, through AI.
Mhm. And so the issue we are solving is that everybody wants to create short-form content today, thanks to people like you. Um, and they just struggle with creating nice short-form content that captivates the attention of people. And, um, so we decided to create a tool that helps us solve this issue in three clicks for everybody. So we grew in the last 12 months from 0 to 5 million making revenue. We plan to reach 20 million by the end of future.
And, um, we believe that in the world, there are two people that help us drive all the traffic that we have. It's you and people like Iman Gazi, because you are the people who just push people to create content. You tell to tell to every people like, you should create content to drive traffic to your business. And so they come to us and say, I want to do the same that Alex did.
And so we help them create the captions, the people, the zoom, everything into clicks. And so today, um, in my goal to reach 20 million in annual revenue next year, um, we identified that there is something for a lot of our users that comes from school. Uh, so they have a community in school, uh, and they want to drive members in their community. So they create content to drive members, but they are using some magic for creating nice content to drive traffic to their school community. And so, yeah, my question was like, what should I do? I mean, in my mind, like, create a partnership with people like you would be the nicest and the most smartest deal I can do ever to grow my business.
So, yeah.
What's the constraint?
What do you mean by the constraint?
So you said you're going from 5 to 20. So why bother?
Sorry.
So you said you're at 5 million and you're going to hit 20 next year.
Yeah.
So how are you getting customers right now? That's weird.
So.
How are you getting customers right now?
We have forward from Christian channel. Uh, 50% of our revenue coming from World of Mos.
All right.
Uh, then 20% from affiliates. We have 7,000 affiliates today that share the world, share the message among the world, and the rest is mainly SEO creation.
What's the price?
Uh, so it's between 20 bucks a month to 150 bucks a month. And our average basket is around 40 bucks a month. 40 bucks per user.
Got it. Got it. What are margins?
Uh, we do 45% of the top.
So you're still making money. Great. That's awesome. Super good. Okay. Um, so I, so this is me looking out for you. Why bother? Like, why bother? Like, let me partner with Alex. Like, why bother when you could just go from 5 to 20 next year anyways?
Uh, because we believe we can go faster to this goal with people like you and we can reach much more high than 20. We think we can become like the only one platform for short content creation from ideas to editing to publishing your content. And I think there is a place to take in this world where everybody wants to create content today and there is no software to do that.
Got it. So walk me through the pro. This is just me understanding the product. So let's say, so we've got this, right? So let's just use this as a case study. So we record this, say it's 60 minutes. Um, now what happens? So I've got this raw footage.
Now what?
So now you need to take the, you need to take the extract and create some short content of this content, right? So if you are basically in addition, you're going to see an editor and ask him like, hey, this is more footage. Can you please take some moments that are cool in the videos? Help me doing that. It will take you like probably 40 bucks per shot from content. Spend like hours on it and you will get the results that you like. So otherwise, you use our software, you put your footage, the selection exactly like which part you can use it, super easily. You create the caption on it in two clicks. You create the animation you need, like after effects, and then you publish your content. It, it's just, just makes sense for every people want to click on it.
And so how does it identify where the moments are and how to like structure those moments?
This is me. I just, this is me seeking for curiosity.
What do you mean by moments?
Moments. So like we have 60 minutes. How does it know this is interesting? This is valuable. And then like there's a hook. So I'm going to, I'm going to like he said the hook at the end. Let's put that at the beginning.
That's a very good question. Uh, so everything is based on transcript. So we analyze what you say. Thanks to AI and we understand that you are talking about giving business advice. Oh, that's cool. Okay. Who, who talks about poop and everything is based on AI and we understand like we try to create short form based finding the best the answer and we build that and then if it's not what you're looking for, you can just remove it and change it to find the best hook and we rate that out of 100 to see like which short should be the best for. So basically we do the work of an editor.
So it's like there's three clips in here. This one will do the best based on our guess. This is the second best. This is the third best.
Exactly.
Okay. Super interesting. Yeah. I mean, I think it makes sense that if you're, if you're trying to scale, then like at this point, I mean, I'm guessing that if you've grown to this, this level based on word of mouth and affiliates, like you have growth channels that are established and people are, I'm guessing, happy with the product. What's churn?
Churn is really high.
Okay.
Churn is our weakness. We have a churn of 15% a month.
Yeah. So, it's really high, but it's logical because we target the mass market. Everybody needs to play content. I'm sure in this room people create content and they just start and then it's difficult to keep on going on content. Everybody is not like Alex and.
It's difficult, you know. So they need to really.
Yeah. They still have to make it before they like they still have to do the 60-minute recording which they don't do.
Right. I'm just, I'm, I'm agreeing with you.
Yeah. Yeah.
So I think part of the, of the business we target like a massive market all over the world. We have people from over 60 countries. We do that in 60 languages.
So it's a mass market. Um, churn is part of the game itself. We just need to understand who are ICP. Our ICP is coaches, people who use school, marketing agency owners, and those people are not churning because they have a reliable business.
They already make money.
They make money with the business. That's why they're not churning.
Yeah.
Interesting. Also, the thing is there are other markets. There's like network marketers, which is a massive space. There's realtors, which is a huge space. There's local business owners. Like there's a lot of other. Yeah.
Coaches, all the people who are good in selling something in video, they make very short.
Yeah. Really interesting. Um, I'm going to move on to the next person. But, um, yeah, I mean, fundamentally, I think you're, I think you're doing the right stuff. Like I don't, like I always like to see if I can reduce churn, increase activation. Like we're doing stuff like that at school every day. Even though we have phenomenal metrics, we still want to do better. And sometimes like a handful of tweaks, even CRO and the funnel, lots of things that gets into the tactical level, but I think strategy-wise, you're dead on to be honest with you. I mean, it's a good market, you obviously have a good product. I mean, if it's grown to that point from word of mouth, 50%, then like you have a good product. Um, you're growing more than your churn is. And yes, I agree with you that in a consumer bit, like Spotify has high churn, Shopify has high churn when you're in the consumer business, which you are. Um, so I mean, that, that, that tracks. And, and last question, what do you think about like helping school users getting more captivating, uh, videos? Like, just because you teach them how to create content, right?
Um, I think all of my content teaches them how to [laughter] how to make content more than school does. Yeah. Yeah.
I mean, you see what I mean?
Uh-huh. No, I understand. Yeah. I mean, I, I tell everybody to use all the different methods. So, it's like use outreach, like go reach out, DM, do cold call, cold email, cold whatever, like door knock, that's one-on-one. Then you've got one to many inbound, which is content. Then you've got making ads. You've got affiliates, which is what you use. There's referrals. Like I like people to use, or at least understand at least one or two different ways of getting customers. Um, but no, I think you've got good stuff, man. Very interesting.
So, if you've hit a revenue ceiling or your entire business relies on you to grow, then I'd love to invite you out to our headquarters here in Vegas to learn how we scale. And so my team spends two days with you to identify the thing that's holding your business back. And so if that sounds interesting, click book a call.