I spent the of winter of 2016 in Cape Town South Africa in a beautiful mansion carved out of the side of the mountain. I was retreating from the cold of New York. I was also retreating from life, if I’m being honest.
My company had just failed. $450k of VC money, gone. Lots of credit card debt in its place.
We had a good run. A long one. We spent a lot of time building some really cool things.
The other co-founders got really good at ping-pong. 😝 (I tease - they were amazing! I'm just jealous cause I suck at ping pong)
At least we had an office with a ping-pong table… Emphasis on had.
Now, we had nothing.
I was the CTO of the project. I was responsible for building some awesome technology. And I did. It was my baby. It had CSS animations so smooth you’d literally think it was a native app. I was good at that.
I was good at technology. One of the best I knew, even.
It was around that time that I sat down with a friend of mine from college named Matt. He was complaining to me about his Google golden handcuffs and how he’d like to quit, but he really wanted his retention bonus so he’d make $500k that year.
“Boo-hoo” I thought, and instead said “How long do you have left?”
“384 days - but who’s counting!”
Obviously, he was. He literally had made a countdown calendar.
We parted ways a few hours later, but that stuck with me.
On one hand, I wondered if I had chosen the wrong path. Google has reached out to me at least a dozen times. They even told me I could skip the phone screen. Now I was nearly broke, having been living on savings for the past few months as I tried to push the boulder that was my startup. I could easily just go work for Google, Facebook, or some other large company like that.
On the other hand, Matt. Sure, he was making half a million dollars a year. He didn’t seem happy, though. I mean, he made a countdown calendar checking off day by day until he could quit.
Our company’s designer, Manny — who’s parents paid his rent, and college, and food, and everything else — offered to let me sleep on his couch. “People need to make sacrifices like this to get what they want,” he told me. 🙄
I knew I was very skilled. I knew I could go get some high paying consulting gig. Hell, I even got him TWO different jobs. I’d be damned before I went back to sleeping on couches. I spent far too many days in college doing that already because I couldn’t afford housing! Also, as I mentioned before, I may or may not have been kicked out of housing for riding on top of the dorm room elevator...
I became lost in my thoughts about how this came to be my reality.
How could I, a skilled systems architect and engineer, have failed to build a tech company?
I eventually came to the conclusion that, “if you build it they will come” is a lie.
The reason we failed was that no one on our team understood marketing and sales, and the fact that they are actually MORE important than the product.
The reason my company failed is that I sucked at marketing.
Sure, I was the CTO. You probably don't associate the CTO with marketing. Again, though, if you’re gonna start a company, you should be prepared to wear all of the hats.
I thought I was, but didn’t know what I didn’t know. I was not ready. And so, it was time to figure out what came next.
I had just finished reading a book that told me: “If you want to be rich, don’t work for money." The idea was that instead, you should work for new skills. Jobs are for learning skills to use in your own ventures.
Two friends in my network in the digital marketing space happened to be looking for an engineer to build custom marketing funnels for their video training courses.
I didn’t even know what a marketing funnel was, but I was sure as hell I could build one. AND, when I spoke with them on the phone, they told me they travel about 90% of the time. They met up every few months in different locations, and they had just reserved a $16k/month mansion in Cape Town, South Africa, which I was invited to with my girlfriend if I joined. Oh, and between the two of them, they said, they were making over a million dollars per year selling information videos.
Let me ask you a question… Would you have told them no?
So, I accepted the position. I’d made more money when I was 23 a few years back, but like the book said - “if you want to be rich, don’t work for money." I was more interested in learning how the hell they were making millions of dollars selling information videos.
The trip was not for another couple of months, so in the meantime, they had some websites that were wired up to all sorts of tools: Some custom PHP sites, a Wordpress, some shopping cart software, a merchant/card processor. Some stupid cheap looking tools that put ugly countdown timers on their website, SaaS services that verified email addresses, and more. All of them wired together by purchasing software solely based on whether or not it wired up together easily through some sort of provided integration.
Eventually, the months passed, and I had rebuilt a few of their websites in that time, and a couple of new ones. I built custom analytics, and advanced custom split testing that enabled them to tweak and optimize their website conversions more and more.
Once working with them more closely, I quickly learned their company was much more marketing and sales than product.
I knew exactly what they were doing, and I was amazed it worked.
It felt to me like some spammy email trap that I would stay away from at all costs, except the design was top notch, and there was a video of the CEO at the top called a "VSL." And yet, thousands and thousands of people poured through their site, from one step, to the next, in this carefully crafted sequence of video sales letters.
AND THEY WOULD MAKE IT RAIN.
So I started to understand, when they say “funnel” they just mean a few different sequenced web pages that lead customers down a specific path. Kinda like a helpful sales associate in a store guiding you through the purchase.
After a few months getting acquainted with them and their product, I was looking forward to the Cape Town trip. One, because it’s freakin Cape Town and it’s basically the most beautiful place on Earth. Full or mountains and beaches (with penguins!). Two of my favorite things! And Two, because I wanted to use the opportunity to figure how everything actually worked behind the scenes.
And so, eventually, the months passed, and Angelly and I packed our bags and took the 36 hour trip to Africa, and let me tell you, that was a brutally long flight. From NYC to Ghana, to Johannesburg, and finally to Cape Town. 36 hours door to door.
When we landed in Ghana we weren’t even allowed to leave the runway. We were told they also needed to search the plane, as armed military dressed guards boarded the plane and took the cushion off of every individual seat to search under it. Once they left, they fumigated the plane with something they assured us was safe to breathe.
Finally, after another layover in Johannesburg, we arrived in Cape Town.
The mansion they rented was breathtaking (and not in the same way I feared whatever they used to fumigate the plane was). It was carved out of the side of a rocky hillside overlooking a private beach that only the gated community, LLandudno, had access too. There was an infinity pool and even a cave area under a giant boulder that went through multiple floors of the house and ended as the wall of our bedroom.
After settling in, I eventually had a conversation with the founder of the company.
I remember thinking: I’m a systems architect. I build complicated systems all day long. If he can sell millions of dollars worth of information products, I should be able to do it for something I know about!
That’s why when I asked “What inspired you to build your company in the first place” and he replied “I just really like building systems.”
...
My mind kind of exploded.
“Great” I, the systems architect, thought “Systems...“ How incredibly vague.
Obviously we had a different understanding of the word “system." I was building incredibly complex systems daily. I had built systems that allowed transactions of private equity in dark pools for institutional investors. I was pretty sure that whatever system he was talking about, I should be able to understand and recreate it.
Turns out, there are a lot of different types of systems. Systems like I was used to, for building and scaling technical solutions, but there are also systems that are designed specfically to make money!
I had been learning the wrong systems.
This is the point that I began searching for marketing podcasts, blogs, experts, courses and anything else I could find that could help me learn how to build these systems — the systems that are designed to make money.
It was time to start my own company again. I wasn't sure exactly what we'd do, so back to the bread winner: consulting.