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It's called the Satellite Acquisition Model. When 1 core business surrounds itself with profitable businesses that feed into it. Like tributaries flowing into a river. Or like planets orbiting a sun. Each satellite creates its own gravity of income.

56,968 views • 1 year ago •via X (Twitter)

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Codie Sanchez's profile picture
Codie Sanchez1 year ago

This is the ONE strategy that’s made: • Amazon a trillion-dollar company • Taylor Swift a billionaire • Your local laundromat worth a million Any business owner who doesn’t know this model is leaving money on the table. Here’s how it works:

Codie Sanchez's profile picture
Codie Sanchez1 year ago

This is Amazon’s income statement from Q4 of last year. You notice something? They're an online retailer. But less than 1/2 of their revenue is online store sales. Amazon doesn’t just SELL to grow. They BUY.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

Ex. A real estate company could acquire: - A property management co - A social media agency - A video agency - A landscaping company - Cleaning company - Mortgage broker Suddenly, your liabilities are profits. Let's do a mini-dive on how 7 other types of companies do this...

Codie Sanchez's profile picture
Codie Sanchez1 year ago

1. Amazon It wasn't always a trillion-dollar giant. In 1994, it was just Jeff Bezos selling books online from his garage. But only 4 years later, Amazon acquired its first satellites. The empire was born...

Codie Sanchez's profile picture
Codie Sanchez1 year ago

How Amazon's satellites feed each other: - AWS to power their site + make $80B/yr - Marketplace = 3rd party revenue - Audible & Prime, more media to sell - Prime membership for repeat purchases - Logistics for fast delivery - Alexa to collect all the data From one "bookstore."

Codie Sanchez's profile picture
Codie Sanchez1 year ago

Amazon has acquired more companies than you even realize: - Ring - IMDb - Zappos - Goodreads - Whole Foods - and over 100 others Seemingly unrelated brands that create a giant flywheel.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

2. Laundromat Most people see a laundromat as a simple business: washers, dryers, and quarters. But the smartest owners see it differently. They see a foundation for multiple revenue streams, all working together to build serious wealth.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

Here’s a basic blueprint for laundromat satellites: - Acquire vending, soap + snacks - Launch a wash & fold service - Acquire a fleet, offer pickup & delivery - Buy property & rent spaces - Sell private-label products (acquire a vendor?)

Codie Sanchez's profile picture
Codie Sanchez1 year ago

3. Taylor Swift The teen country singer with a guitar and a dream... Turns out the dream was to build a billion $ fireproof business ecosystem. The core business = music. But Taylor didn't stop there..

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Codie Sanchez1 year ago

The Swifty Satellites: - Tours promote albums ($13M per show) - Albums drive merch sales - Movies boost streaming numbers - Streaming fuels tour demand - Merch creates walking billboards Most think it’s basic pop music, but it’s an empire in disguise.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

4. Magician *Hear me out* Alex is a @_CTCommunity member who has a robust business as an entertainer. He does tours, consults celebrities, MC'd at our event, etc, etc...

Codie Sanchez's profile picture
Codie Sanchez1 year ago

His satellite business of choice? A screen printing & merch company. He sells swag at all his shows. After joining our group, he thought.. Why not buy the vendor? Neat trick.

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Codie Sanchez1 year ago

I just talked to Alex on my podcast, you can listen to our conversation here:

Codie Sanchez's profile picture
Codie Sanchez1 year ago

5. Disney In 1923, it was just Walt and Roy making short cartoons in their uncle's garage. But they realized every piece of content was an opportunity for multiple revenue streams. And every acquisition was too...

Codie Sanchez's profile picture
Codie Sanchez1 year ago

The Disney magic turns 1 story into 6 ways to profit: - It starts with a film that captures hearts - Which leads to a park attraction - Families need hotels near the parks - Which sell vacation packages - Those lead to cruises - While merch follows you home

Codie Sanchez's profile picture
Codie Sanchez1 year ago

6. Coffee Shop The AOV of a coffee shop is extremely low. $5 for a latte = 200 customers just to crack $1,000 in sales for the day. Satellites can help with that.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

How do you make people spend more on a low-priced product? Give them more stuff the buy. - Add a bakery/kitchen or partner with an existing local business - Don't buy beans, buy the whole roastery - Buy the laundromat down the street, so they grab a drink while they wait

Codie Sanchez's profile picture
Codie Sanchez1 year ago

I visited Atlas Coffee Club awhile back, and I loved how the founder Michael thinks about this. Coffee subscription > Tea subscription > Chocolate subscription Cross sell to current customers AND tap a new market at the same time.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

7. Adobe Adobe had 1 product at the start: PostScript, which created the standard for computer printing in the 80s. But by accumulating satellites around their core, they've locked down the entire creative industry:

Codie Sanchez's profile picture
Codie Sanchez1 year ago

Adobe can engineer one software user into a lifetime customer: - Designers start with Photoshop, and naturally flow into Illustrator. - Video editors need Premiere, which leads them to After Effects. - Everything connects through Creative Cloud, pulling in enterprise clients.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

The beauty of the Satellite Model is you don't need to be Adobe or Disney to do it. The type of business doesn't matter. Gym, dog grooming, accounting, interior design, real estate, consulting, whatever. What matters is your ability to add satellites to the main thing you're good at.

Codie Sanchez's profile picture
Codie Sanchez1 year ago

That's how the rich think about business. Follow me @Codie_Sanchez for more on business & leveling up your wealth. Share here if this was valuable:

Codie Sanchez's profile picture
Codie Sanchez1 year ago

If you want to learn HOW to buy your first (or next) business, I have a book out this week on exactly that. Get it here, submit your order #, and I'll give you a ticket to my event this Thurs!

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