Case Study: Scaling to $1M per month In 5 months with global talent

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Read time: 3 minutes

In just 5 months, Hunter Hammonds launched 5 productized services generating mid 7-figures ARR.

They’ve been profitable since day 0, invested $0, and raised $0.

In Today’s Email:

• $1M/month? His technique to scale to $5M ARR in 5 months.

• Cost Hack: How to save ~65%+ on creative talent using global talent.

• Business Model: His scalable, low-cost business model

CASE STUDY

This Company Scaled To $1M/month In 5 Months

Assembly is a holding company that provides creative services (think video editing, animation, graphic design, etc).

But...isn’t the agency space is commoditized?

Here’s how Assembly scaled to $1M ARR/month, when most agencies struggle to stand out.

Strategy #1: Creator Partnerships

Hunter co-founded Assembly with Sahil Bloom, an investor and creator with 1 million followers on Twitter.

Together, they saw an opportunity to tap into niche verticals and partner with creators that have carved out a meaningful brand in that vertical.

Normally, creators are hard to get in-front of, but with Sahil on board, they would have direct access to some of the world's best creators.

Next, they reached out to Ali Abdaal, a YouTuber with 4.8M followers. The pitch was simple:

• Ali's followers, many of whom are creators, love his content.

• Those followers would love the opportunity to use the same design and editing services that he does.

• Through this partnership, Ali could offer his followers a service to produce high-quality YouTube videos.

The idea worked instantly. A single tweet from Ali (below) generated a year's worth of clients.

Hunter refers to this as “Product-Audience Fit.”

They repeated this model and launched 5 businesses:

1. Keyframe: A video animation service with Dan Koe, reaching full capacity within 48 hours.

2. ViralCuts (LTV: $23,171): A video editing venture co-founded with Codie A. Sanchez and Sam Parr, was overwhelmed with leads within 24 hours.

3. HeyFriends! (LTV: $24,729): A YouTube agency in partnership with Ali Abdaal, generated over $2 million in monthly recurring revenue (MRR) from a single tweet.

4. Off Menu (LTV: $61,499) & 5. Bitesized (LTV: $15,430): Both are web-design services, spearheaded by Hunter and Sahil.

They plan to launch 12 more companies in 12 months.

Strategy #2: Productize The Services

Every one of these businesses shared three pillars:

1. Defined Pricing: Set deliverables and pricing for clarity.

2. Streamlined Processes: Replicable, efficient workflows.

3. Subscription Model: Consistent revenue through ongoing fees.

This model, akin to Brett Williams' $1.5M/year one-man agency at DesignJoy, balances scalability with sustainable revenue. The focus is on a clear input-output ratio.

The last critical piece - Creating a A 70% margin service.

Here’s his formula: (Costs X 4) / Projects = Minimum Price.

Example: A designer costs $10k/month and can support 3 projects. Therefore, charge $15k/month per project for a 77% margin.

The only input left to scale exceptional creative talent…

TALENT

Increase profitability with offshore creative talent

Recruiting offshore creative talent can be a nightmare IF you don’t have the right processes in place.

There are big cost savings

Let’s look at the annual salaries of mid-level (e.g 3-6 years of experience) Graphic Design talent in the US vs. abroad.

• United States: $6,000-$8,000/month ($72,000-$96,000/year)

• Philippines: $1,800-$2,000/month ($21,600 - $24,000/year)

• LATAM: $1,900-$2,500/month ($22,800 - $30,000/year)

Savings = ~$40,000 - $60,000/yr

Pretty wild.

Real-world case study: recruiting designer talent 

Hunter isn’t a client (yet!), but we recently helped a Chicago-based marketing design agency hire a team of graphic designers.

Here's the process:

1. Define The Role: The agency needed an Email Graphic Designer with 3+ years of experience in Klaviyo.

2. Source Applicants: Given the challenges of language, time zones, and cultural differences, we cast a wide net, screening 300-500 applicants.

3. Initial Screening Interviews: We assessed candidates for cultural, communication, and functional fit.

4. Two-Level Assessment:

   • Level 1 - General: Assessments in English proficiency, DISC, etc.

   • Level 2 - Design assessment with deliverables

     

     Real Prompt

5. Final Interviews: Focused on cultural alignment, strategic thinking, and long-term fit.

6. Contract & Onboard: Compliantly contract, set up payroll and benefits, provide ongoing support.

Results: From about 8 top candidates, the client interviewed 5 and hired 2 at $1,800/month and $2,000/month, respectively.

Like Hunter, you can enhance your team's efficiency with global talent. Reply to this email with a role you're exploring (or click here), and get a custom salary quote.

See you next week!