Finance and marketing

The financial industry is like a money creating machine.

Let’s say you create a business which brings in $10 million profit a year, regularly.

Then that company might be worth $120 million, on something like that. Valued on a price/earnings ratio of 12x.

That’s $120 million of new wealth that’s created, simply by financification.

In a world without the stock market, that company’s worth a lot less. One company might be willing to pay 3 or 4x it’s value.

But the thing is, if you look at senior marketing people in companies – they’re often what makes or breaks a company.

They decide how to spend their budgets.

They’re responsible for getting ROI on that.

They know how to make awesome content, jump up Google, or they know agencies who can do a fantastic job.

But let’s say you have a brilliant marketing director in a new company. And her strategy and team, build the company that makes $10 million profit a year.

She’s created much more value than what the numbers show.

In fact, she’s created $120 million of wealth.

But the bulk of that goes to the owner. And not to the marketer, and the salespeople who made that happen.

That’s why people who are exceptional at sales and marketing don’t stay in a certain job.

They’ll either become a consultants, and charge a lot because they can show the value they can add.

Or they’ll set up their own businesses, and take their majority cut of the spoils when the company gets an exit.

So here’s maybe a crazy idea. You get some venture capital funding. You find some of the smartest marketers in the world.

Super SEO experts. Content strategists/ex-journalists who love what they do. PR people who can get coverage inside-out. Paid search geniuses. Salespeople who love selling. Copywriters who wow.

Get them or people in their industry, to brainstorm some wacky software or business ideas. Make it.

You give the marketers and salespeople a chunky equity stake.

Then they sell it.

Financification will make that company worth many times the profit it’s generating.

And these marketers take home most of the spoils.

Most top marketers don’t get paid anywhere near the amount of value they create.

And this would ensure you got the best people in the world, and made those businesses powerhouses and amazing places to work.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s