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So, I got fired 2 weeks ago with only two weeks severance. One of my bosses, let's call him B1, both are the co-founders, cited that they expect to lose 60% of their product line soon and are laying off people in many areas, not just me. The other boss, B2, didn't say shit and was just listening in. I know B2 is cheap AF but he's from a rich family in Spain. He likes to keep costs low and margins high and runs the business like a small business and not a growing tech company. In December, I negotiated my compensation to be $300,000 a year with $50,000 fixed bonuses for the next 5 years. This fixed expense, that grows every year, was too much for B2 and, with the fear of losing 60% of sales, they fired me. I get it. They're hanging on to dear life, is what they're telling me.
At the same time, when I first was hired, B1 told me how he knows SEO is so important as it was so good for his hunting lodge. The odd thing was, he didn't hire the SEO guy for the hunting lodge at this new company -- which was odd. After talking to a few former employees, I found out that B1's thing was to churn employees. He'll hire cheap ones and, if they're good, he'll hire expensive ones but, once the expensive ones were no longer useful or he could replace them with the SOPs they wrote, he'll fire them. I had a feeling of that and had my team delete all SOPs. However, they hired a "content marketing manager" who was my "new boss" who kept on asking questions on how stuff was done. That guy was my replacement and he was learning how to do my role. Good for my need for revenge, as I found out the guy who was hired is lazy and stupid. B1 and B2 hired him and offered him a raise, that's why he accepted the role. He doesn't know what to do, as he's a glorified content writer. He only knows on-page SEO for content writing. They're screwing themselves over and are not even knowing it, from the decisions I hear them make from my friends still in the company. Great I don't have to do anything to screw them over. They are doing it to themselves.
Also, at the same time, I had a friend send me the analytics of the company. The sales are going up. They're not going down. The "fear" of losing 60% of the product line might be a lie. They might have just fired me to keep the expenses low, steal all my hard work, and keep the business to themselves. They're that short sighted. They learned during the pandemic, that they can justify firing people with an economic downturn or economic hardship. People will believe that. However, it might not be true. The company did make $6,000,000 in the last year and they hire the cheapest employees. They might just be that greedy.
When I was hired in 2016, they made $36,000 in annual SE revenue. When I left, the SE revenue for the past year to date was $3,000,000 and the non-SE revenue was $3,000,000 too. The thing is, I think most non-SE revenue was also due to search and it wasn't being tracked correctly by Google Analytics. The reason for this hunch is that non-SE revenue grew in correlation to SE revenue. I can't prove it but that's my hunch.
So, here's my lessons, good and bad, from taking a company of 20 to 120, in no specific order and from the top of my head as they come in:
I earned over $1,000,000 in my whole six years there. Pretty good. I could have done better saving my money when I was making so much money. I felt like I was going to make money constantly like that and that downturns were not a thing. Nope. I was naive. It was my first time making bank and I learned I do have 4 rental properties to show for it though. Quite good
Also, me busting my ass was them exploiting me but it was also making myself and my human capital super valuable. I applied to 30 jobs so far and get a reply about 20% of the time asking for an interview. I got about 2-3 recruiters contact me too, and I only updated my LinkedIn 4 weeks ago. Being a solo entrepreneur, you know a lot of things and can be a "marketing director" since you handle all channels, but no one would hire you as that, as you don't have experience leading others and a team. In my six years, I specialised in SEO and can be a "director of SEO" or "senior SEO manager" and, to go up, I just need to learn the other channels, again, so that I can be "director of marketing" or "director of growth".
So, yeah, if you are going to grow an agency, startup, or whatever, make sure you have good human capital when it is necessary. I kinda see their point. I was paid $100,000 above the top 3% of the market and they weren't going to pay me $500,000 a year 5 years from now. I didn't feel like working cheaper than that, after all I did for them. It was time to part ways. I got my experience and salary and pay. They got a larger company. Now, I can make a larger company, from the mistakes they made as well as from what they did good. Thank you B1 and B2 I really did learn with their capital and they took the risks.
At the same time, when I first was hired, B1 told me how he knows SEO is so important as it was so good for his hunting lodge. The odd thing was, he didn't hire the SEO guy for the hunting lodge at this new company -- which was odd. After talking to a few former employees, I found out that B1's thing was to churn employees. He'll hire cheap ones and, if they're good, he'll hire expensive ones but, once the expensive ones were no longer useful or he could replace them with the SOPs they wrote, he'll fire them. I had a feeling of that and had my team delete all SOPs. However, they hired a "content marketing manager" who was my "new boss" who kept on asking questions on how stuff was done. That guy was my replacement and he was learning how to do my role. Good for my need for revenge, as I found out the guy who was hired is lazy and stupid. B1 and B2 hired him and offered him a raise, that's why he accepted the role. He doesn't know what to do, as he's a glorified content writer. He only knows on-page SEO for content writing. They're screwing themselves over and are not even knowing it, from the decisions I hear them make from my friends still in the company. Great I don't have to do anything to screw them over. They are doing it to themselves.
Also, at the same time, I had a friend send me the analytics of the company. The sales are going up. They're not going down. The "fear" of losing 60% of the product line might be a lie. They might have just fired me to keep the expenses low, steal all my hard work, and keep the business to themselves. They're that short sighted. They learned during the pandemic, that they can justify firing people with an economic downturn or economic hardship. People will believe that. However, it might not be true. The company did make $6,000,000 in the last year and they hire the cheapest employees. They might just be that greedy.
When I was hired in 2016, they made $36,000 in annual SE revenue. When I left, the SE revenue for the past year to date was $3,000,000 and the non-SE revenue was $3,000,000 too. The thing is, I think most non-SE revenue was also due to search and it wasn't being tracked correctly by Google Analytics. The reason for this hunch is that non-SE revenue grew in correlation to SE revenue. I can't prove it but that's my hunch.
So, here's my lessons, good and bad, from taking a company of 20 to 120, in no specific order and from the top of my head as they come in:
- Don't be cheap with key employees. B1 was soo cheap with employees and B2 was cheap AF too. They did some DUMB AF things like had an intern prepare their slide deck that they're going to use to find VC funding. I thought they'd hire a person with finance experience who raised funds before but, no, they hired someone who definitely did not know anything. They shot themselves in the foot left and right and lost many good human capital during the 6 years I was there. A lot of the new employees lack the knowledge and experience of some of the former employees and, with these management decisions, I doubt the company's financial solvency, I doubt the top two managers, and I doubted many of the newer managers. Besides the SOP, workers, capital, and assets, the company is the group of people making decisions for it. You don't want idiots working for you for this very reason. They hired a bunch of idiots.
- At the same time, I found that I was pessimistic of a few items and could have been more open minded. We did launch a product line that I thought was stupid that ended up bringing in 60% of revenue. The product line is going away. I was wrong there.
- Get an attorney to review every contract. I lost out on $30,000 or so because I didn't get an attorney to read over a settlement. I felt that I knew what I was doing and I was overly cocky, when in fact, I was being swept. I was stupid for not paying an attorney $400 to review the contract. My mistake. Lesson learned :'-(
- Talk to other people in the company -- I thought they were OK but slimy at first and, only when I was on my way out did I talk to others who left already. Then I got a better picture of who they were. They people who use people until they're not useful anymore. They'd rather have their high social status in the hierarchy than anything else. They're spanish after all and that's what the Conquistadors did to the natives. They just took the gold and enslaved the populace. How nice. I put up with it as I was being paid a lot. That sucked.
- Go for many, many low hanging fruits. The site has like 10,000 pages. half don't generate revenue but the other half does. It build upon itself over time.
- Make sure you have a quality staff. We went with the cheapest writers available and the content went from an asset in 2018 or so to a liability today, as we have issues with Google Eat. Similar to #1, if you are running a website where your "house" is your content, you need good writers.
- Hire good people. After the initial growth, all the owners did was hire talent, get them working, and have them grow more of the company. They hired an affiliate person, discussed with them how affiliate marketing works from the company's site and affiliate generates six figures in revenue a year as well as tons of backlinks. They hired a paid ads person and that generates six figures a year in revenue. They hired a CFO who advises them on financial decisions. After you have product-market-fit, hire people who are better than you in their areas of expertise and listen to them. Experts count. This goes back to #1.
- Keep the savings rate high. This was something I was semi-good at but can improve on. The savings rate is from the income statement. It is (revenue-expenses)/revenue. It is how efficient the company is at turning income into capital. We are in the capitalist game after all. They were too cheap but they did a good job at keeping expenses low by hiring from LATAM and Philippines. The key employees were from the US or Europe. It's a standard playbook of many companies nowadays.
- Don't be too risk adverse when you have something to lose. IMO their biggest flaw is that, now, with a 6 million dollar company, they're super risk adverse and won't take any risks as they have something to lose. They're like the monkey who places his hands in the cage with the opening just big enough for his wrist, to grab the nut. However, he can't take the nut out as the opening is not big enough for his fist. To take his hand out, he needs to let go of the nut. They are the monkey. They lost 20% of their backlinks this year so far because they are too risk adverse for link building now. They're going with a MOZ like strategy of content first. Sounds great but, knowing this niche, it's a joke. Maybe the new SEO agencies can do link building for them, but they might need a lot of backlinks to make up for the 20% loss. They don't know about the 20% loss. Only I do. I'm not telling them either. Fuck them. I had a feeling I was on my way out earlier this year and kept a few stuff quiet. I was right.
- You have to have meetings and talk with your people. I hate meetings but it is a necessary evil. That's the only way critical things get done soon, if you are on someone's back to get it done. Otherwise, they won't get the sense of urgency. This is also how you monitor your quality. It's not just in paperwork and reports. It's also talking to the people doing the work.
- You need to hire an HR team (to hire new talent), finance team (for bookkeeping, reporting, and financial analysis and decision making and paying payroll and vendors, also for charge backs too), product team (if you have a product to sell or develop), tech team (to manage the site, keep things up-to-date with tech changes, keep things secure, etc), customer service team, and fulfillment team (if you need a back office to fulfill the orders) and do cool company things like pizza parties or dinners or whatever. This forum is very much towards marketing and lacks the other area of business. After being exposed to these other areas of business, I know that my next endeavour will be much bigger than a simple SEO website that earns via display ads or affiliate links. Those other areas are not hard at all. I'm not doing them myself but I will definitely hire people to do those roles for me. There's no need to reinvent the wheel.
I earned over $1,000,000 in my whole six years there. Pretty good. I could have done better saving my money when I was making so much money. I felt like I was going to make money constantly like that and that downturns were not a thing. Nope. I was naive. It was my first time making bank and I learned I do have 4 rental properties to show for it though. Quite good
Also, me busting my ass was them exploiting me but it was also making myself and my human capital super valuable. I applied to 30 jobs so far and get a reply about 20% of the time asking for an interview. I got about 2-3 recruiters contact me too, and I only updated my LinkedIn 4 weeks ago. Being a solo entrepreneur, you know a lot of things and can be a "marketing director" since you handle all channels, but no one would hire you as that, as you don't have experience leading others and a team. In my six years, I specialised in SEO and can be a "director of SEO" or "senior SEO manager" and, to go up, I just need to learn the other channels, again, so that I can be "director of marketing" or "director of growth".
So, yeah, if you are going to grow an agency, startup, or whatever, make sure you have good human capital when it is necessary. I kinda see their point. I was paid $100,000 above the top 3% of the market and they weren't going to pay me $500,000 a year 5 years from now. I didn't feel like working cheaper than that, after all I did for them. It was time to part ways. I got my experience and salary and pay. They got a larger company. Now, I can make a larger company, from the mistakes they made as well as from what they did good. Thank you B1 and B2 I really did learn with their capital and they took the risks.