I help excellent businesses build excellent distribution.

I help excellent businesses build excellent distribution. If you’re watching this video, it’s because you’re on my home page and you can see those words to one or other side. What does it mean? I’m going to explain it here, and I’m going to do it in three parts. Part one, we’re going to talk about what distribution is. Part two, we’re going to talk about why it matters. And part three, we’re going to talk about how you can use the insights from understanding it to ascend the profitability ladder in your business.

So, part one. What is distribution? Here’s a way that we can picture any business. It’s got two parts. Part number one is the offer. This is the thing that you actually do for your customers. In order for a business to be sustainable, your offer has to generate more value for them than the money that they pay you. This has to be there. It is the foundation of every business. But on its own, it is not enough. That’s where part two comes in: distribution.

Distribution is everything that carries your work to the people who need it. In this picture, the height of your offer and the height of your distribution is an indication of its quality. The higher it is, the better the quality. The width of the final diagram is how many people it reaches in the world. And the crowd of people at the top is an indication of the demand there is for your product or service.

So let’s talk about point number two. Why does this matter? There’s a common wisdom. Peter Thiel wrote about it in his book. Everybody says this. It goes something like: an average offer with excellent distribution beats an excellent offer with average distribution, every time. It doesn’t really feel right, but that is, unfortunately, how the world works. So if you have an excellent offer but you’re not thinking about your distribution, you are leaving significant value on the table.

Now let’s talk about part number three: the profitability spiral. Everything we’ve discussed so far has been a snapshot, but we need to think about how this changes over time. So at point number one, you start off with an excellent offer. If you begin to lean into your distribution, you can get to a point where the demand for your offer exceeds the supply. This is what Daniel Priestley calls being oversubscribed.

When you’re oversubscribed, you can do two things. The first one is you can raise your prices, and the second is you can begin to pick and choose the work you’re going to do. Simply by raising your prices and picking and choosing the work you’re going to do, it’s going to allow you to lean into that work even more and generate a better offer, which, if you’re focusing on your distribution, will continue to be oversubscribed. And you can continue to ascend this profitability ladder. Alex Hormozi says that sometimes the path to growth is not through more customers, but better customers.

I help excellent businesses build excellent distribution, so that you can grow your business, earn more money, do better work, and end up working with the people you really want to work with. It sounds overly fantastical and magical, I know. I’m not promising that it’s going to happen in one moment. You can always optimise what you are doing. There’s always the next step, and after that, the next step. You can always be moving in the right direction.

Have a look around the site. If you want to book some time in my calendar, I’d love to hear what you’re working on. Or you can take the Quick Read and get an idea of where you should start working on your distribution, in order to get started.