Translating Metrics Into Money

Jesse Pujji shares insights about building a successful consulting business (Aux Insights) by translating technical marketing metrics into financial terms that private equity firms can understand and act upon. The key is making complex marketing data accessible and actionable for high-net-worth decision makers.

Key Points:

• Origin of the Business Idea:

  • Received regular calls from PE friends asking to interpret Google/Facebook ad performance
  • Recognized pattern of PE firms struggling to understand marketing metrics
  • Identified gap between technical marketing knowledge and PE decision-making needs

• Value Proposition:

  • Translates marketing levers into revenue and EBITDA terms
  • Provides certainty and risk assessment for PE deals
  • Charges $50,000 per week (75% cheaper than McKinsey/Bain but specialized in digital)

• Key Deliverables:

  • Grades every marketing channel
  • Creates waterfall showing current EBITDA
  • Projects potential EBITDA improvements based on marketing optimizations
  • Identifies red flags in marketing operations

• Business Model Success Factors:

  • Customers are not price sensitive
  • Decisions involve large amounts of money
  • Clients are rational about ROI
  • Service helps protect careers of mid-level partners

• Market Validation:

  • During discovery phase, potential clients asked to buy before formal offering
  • Reached $5M revenue in first year
  • Required minimal investment compared to previous ventures
  • Found immediate demand from existing network

• Key Learning:

  • Important to understand demand before building
  • Selling to wealthy clients who have urgent needs
  • Focus on translating technical knowledge into business impact
  • Build on existing expertise and network connections