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The $1M Secret: Why 89% of Founders Fail at Scale đź’¸

Why Partnerships and Channel Sales are a Waste of Time Under 1M ARR

Ever watch toddlers play soccer? Twenty tiny humans chasing the ball around like a swarm of bees, completely ignoring their positions on the field. Now replace "ball" with "new marketing channel" and "tiny humans" with "entrepreneurs," and you've got a perfect picture of most businesses under $1M in revenue.

Let me tell you about my spectacular failure at MotivBase. There I was, thinking I was absolutely brilliant, pursuing partnerships with organizations that looked perfect on paper. Fortune 500 companies! Partner programs! Strategic alliances!

It was about as effective as trying to fill a swimming pool with a coffee mug.

The $1M truth nobody talks about: Your business needs ONE channel. Not five. Not three. Just one obsessively executed channel.

Why do we resist this? Sociologists have a fascinating explanation: it's called "status anxiety in late capitalism." We're conditioned to believe there's always some hidden secret, some magical combination of strategies that successful people know and aren't telling us. It's why we devour posts about "morning routines of billionaires" and jump at every new "growth hack." French philosopher Michel Foucault called this the endless pursuit of hidden knowledge - we convince ourselves there must be secret pathways to success that we just haven't discovered yet. But here's the thing – you're not uncovering some mystical business secret. You're building a company. And in business, depth beats breadth every single time.

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Think about it: Every time you add a new channel, you're not just dividing your resources – you're dividing your expertise, your focus, and your chance of actually making any of them work. It's like trying to learn five languages simultaneously. Sure, you might end up knowing how to say "hello" in all of them, but you won't be having any meaningful conversations.

The math is brutally simple:

  • 100% focus on one channel = potential for mastery

  • 20% focus on five channels = guaranteed mediocrity

"But what about diversification?" I hear you cry. "What if my channel stops working?"

If you haven't hit $1M in revenue yet, you haven't earned the right to diversify. 

You haven't even mastered one channel yet. It's like worrying about which color to paint your house when you haven't built the foundation.

At MotivBase, I learned this lesson the expensive way. Every partnership we pursued was a distraction from what actually worked – our direct sales channel. Each "strategic alliance" meeting was an hour we weren't spending perfecting our core approach. We were trying to outsource our growth, hoping someone else would do the hard work for us. Looking back, if I run the basic math, I think we could have hit all our ARR milestones a year sooner had we not let these “extra channels” distract us in the early days. 

The uncomfortable reality we must all face as entrepreneurs is that no one will do your heavy lifting for you. That perfect partner who's going to magically deliver clients to your doorstep? They don't exist. They're too busy building their own business.

The most successful businesses crossing $1M in ARR are boring. They do one thing, in one channel, really well. They're like that friend who meal preps the same lunch every day and is somehow in incredible shape. Coincidence? I think not.

If you’re under $1M in ARR, pick your lane. Stay in it. Become uncomfortably good at it. Hit $1M. Then, and only then, can we talk about channel expansion.

Until then, every time you're tempted by a new channel, remember this: The riches are in the niches, and the success is in the obsession.

Choose yours wisely.

P.S. Still not convinced? The most successful restaurant in my neighborhood sells exactly one thing: pizza. No appetizers, no salads, no desserts. Just pizza. They're laughing their way to the bank. Meanwhile, the "we serve everything" place across the street just changed owners for the third time this year. Just saying... 🍕

PPS: Happy New Year! I wish you all an incredible 2025 filled with success and fulfillment, following a path that is uniquely your own.

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