At Luminari, we’ve been lucky enough to be part of this year’s Creative Destruction Lab (CDL) cohort. CDL is a program that gives startup founders unparalleled access to some of the world’s most successful entrepreneurs. Just this week, as part of the program we sat down with Michael Hyatt, founder of BlueCat Networks, which was recently acquired by Madison Dearborn Partners for $400 million.
Meeting Michael Hyatt
The meeting ended up being kind of like a canoe trip where it rains the entire time. Your miserable while you’re going through it, but you look back on it in a fond way, believing you’ve come out stronger for the experience.
Michael had a lot to say. Being a young company that’s still figuring out many parts of our business, there’s never any shortage of areas open to reasonable criticism. Ultimately, his focus was on our prices, which he thinks are way too low. He didn’t sugar coat it one bit, going as far as to think our entire business model didn’t make sense to him at these prices!
When you consider the results we get, our measly fee of $800 does seem out of place. On average, recruiters cost $11,800, which is the equivalent of using Luminari for almost 15 roles! Success on jobs boards like indeed or LinkedIn is A LOT less likely, and come with the frustrations of sifting through the hundreds of unqualified people to get there.
So it looks like Michael was totally right, and now we’re trying to figure out how to make the right change to ensure good value for our clients and a road to success for us. This won’t happen overnight as we consider the options in front of us. The only thing we know for sure is that we want to avoid the contingent recruiter model. That model puts our incentives at odds with the objectives of both our clients and our CPA community, and often leads to misuse.
Luckily, while we’re figuring it out, if you’re looking to hire a CPA you can still take advantage of our price point that’s so low it might just bankrupt us. Reach out to my cofounder Adam at email@example.com and he’ll take care of you.
And to Michael Hyatt: thanks for raining on our parade (or canoe trip). Basking in the sun might be delightful, but it isn’t going to help us build a successful company.