Key Points From the Interview
t's understood in our world that it's great to buy a business that provides non-discretionary services.
Services that the customer needs, not merely wants.
Plumbers that unclog a drain allowing a family's water to flow again would be an obvious example.
On the B2B side, think of certification services that are needed for a business to operate legally.
While the non-discretionary nature of these services is indeed powerful, they are still cost centers.
Customers need to pay for these services, but they wouldn't if they didn't have to.
Well, today's guest Garth Fasano bought a B2B business that offers a profit center.
Top Dog Sales Center makes money by generating revenue for its customers. And its customers are all in a single niche: they're dog trainers.
It's a performance-based outsourced sales function that charges its client only when that client receives a new customer, a true new customer that has actually themselves paid.
So in general, Top Dog's clients are happy to pay it for the service of making them money. You won't be surprised to learn that Top Dog's revenue is quite sticky.
Hard to find a dynamic like this, but it's a powerful model if you can.
We spend quite a bit of time on it, and no, Garth is not sponsoring Acquiring Minds — although admittedly my enthusiasm for his service might make it seem like that.
But hopefully in unpacking Top Dog's model, it gets you thinking more about sales at your now or future business.
Here is Garth Fasano, acquirer & owner of Top Dog Sales Center.