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Do NOT Do This If You Want to Make Money

@justinkan

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66.4K

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2.6K

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Why it worked

The video uses a strong, contrarian hook that challenges conventional business advice, immediately grabbing the viewer's attention with a 'do not' directive.

Summary

The speaker argues against starting a services-based company because it relies on trading time for money, which lacks scalability and leverage. He explains that such businesses suffer from margin compression as competition for talent increases.

Structure

1Hook stating services companies are bad
2Defining a services company as trading time for money
3Explaining why they lack value and leverage
4Concluding that margin compression makes them a poor business model

On-screen text

Do NOT Do This If You Want to Make Money don't start a services company it's terrible services company is one where you get paid for your time if you're getting paid for your time or you're employing people who are getting paid for their time No. 1 those types of businesses are not valuable because they're entirely based on the talent sticking around and effectively the margin gets compressed to zero as things get competitive for the talent and competition starts bidding up the price of talent and it's not a high leverage company

Transcript

Do NOT Do This If You Want to Make Money. Don't start a services company. It's terrible. A services company is one where you get paid for your time. Basically, if you're getting paid for your time or you're employing people who are getting paid for their time, number one, those types of businesses are not valuable because they're entirely based on the talent sticking around and effectively the margin gets compressed to zero as things get competitive for the talent and competition starts bidding up the price of talent and it's not a high leverage company.