Nov 1, 2019 · 20m · top-founders
1560 Why 15k Members Pay $300/mo For This Special Card (Not AMEX)
0:00 / 0:00
gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
Meet Select founder and CEO Carlo Cisco discusses how his luxury membership platform scaled to 15,000 affluent members and a $2 million ARR, while outlining plans to raise $10 million to launch a co-branded credit card rivaling American Express.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 37.7% of the talking time here. How this is scored →
Nathan as informed peer 5.7 Guest teaching 3.7 Guest disagreement 1.8 Nathan pushing back 4.2
speaking balance: gold is Nathan, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 8:35 Rejection of the gym-breakage revenue theory
Cisco immediately shuts down Latka's assertion that Select profits off members underutilizing their subscription.
Hardest push from Nathan ▶ 15:27 Host presses for venture debt partner nameWhen Cisco brushes off naming his venture debt fund assuming Latka won't know them, Latka pushes back to demand the specific name.
Biggest teaching moment ▶ 8:35 Explaining merchant-funded discount economicsCisco educates Latka on the business model, clarifying Select has zero marginal cost for redemptions and members average 3x return on fees.
Nathan holds their own ▶ 3:46 Roleplaying Select's business development pitchLatka demonstrates sharp commercial intuition by accurately improvising the exact pitch Select gives to packed high-end venues.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Nathan as informed peer | Guest teaching | Guest disagreement | Nathan pushing back | Why |
|---|---|---|---|---|---|---|
| Reinventing Rewards Beyond Traditional Points | 6 | 3 | 1 | 4 | Latka challenges how Select can negotiate deals against Amex's scale. He showcases his understanding by performing a spot-on roleplay pitch of Select selling high millennial check sizes to top venues. | |
| Analyzing Member Spending Behavior and Network Effects | 5 | 4 | 2 | 5 | Latka presses Cisco on why venues believe Select's claims and why cash-strapped startup millennials would spend more. Cisco explains test data and the consumer psychology of upgrading experiences when getting discounts. | |
| Negotiating Exclusive Hotel Rates and Inventory | 6 | 5 | 3 | 5 | Latka inspects the live website and suggests Select relies on breakage where members fail to use enough benefits to offset the $300 fee. Cisco directly corrects him, explaining venues fund discounts so Select actively encourages maximum usage. | |
| Scaling Member Growth, Acquisition Costs, and ARR | 7 | 4 | 2 | 4 | Latka drills through core SaaS and unit economics including ARR, CAC, and churn, pointing out that 30% annual churn is high. Cisco defends the churn profile for consumer products and outlines plans to partner with sponsor banks for a credit card launch. | |
| Organizational Structure and Evaluating Buyout Offers | 6 | 3 | 2 | 5 | Latka probes the upcoming fundraise valuation and previous venture debt terms. When Cisco hesitates to name his debt provider, Latka insists on uncovering the firm name. | |
| Member Demographics and Physical Card Utility | 4 | 3 | 1 | 2 | Latka collects demographic statistics on member income and age before moving into the standard Famous Five quick-fire questions. |
Statements from this episode (20)
Select plans to issue a points-based 'mega' credit card
“And then ultimately the goal is actually to combine that with the sorts of points and reward systems that you would see from Typical cards today you know, in issuing a credit card to sort of create this mega credit card, if you will.”
Cisco: Meet Select has 200x more exclusive benefits than Amex
“We have more exclusive benefits than them by a magnitude of over 200. So over 200 times as many benefits.”
Cisco: Meet Select partners with four of top 10 grossing US restaurants
“You know, of the top grossing restaurants in the country, we have four of the top 10.”
Cisco: Select members generate 20% to 30% larger checks for partners
“I know across the board, it tends to be around 20 to 30%. So it's not, A huge magnitude, but it is higher. And that is, you know, with the benefit factored in, whether that's free drinks or a discount or whatever the case may be, like after providing that bene…”
Select Founder: Hotel Program Delivers Average 31% Savings, Up to 70%
“The average savings is 31%, but you can be as high as 70.”
Select Covers 500K Hotel Locations and Has Lowest Rates at Over 200K
“Our hotel program encompasses 500,000 locations at a little over 200,000 of those. And it varies based on inventory. We have the best rate anywhere.”
Cisco: Select Members Recoup Over 3x Their Annual Fee on Average
“On average, members recoup over three X that annual fee.”
Select projects around $2M in revenue for 2019
“We'll be in the neighborhood of two million this year.”
Select reports customer acquisition cost around $250 or lower
“Generally it's around two 50 or a little lower. It depends on the channel of course, but it's sort of across the board. That's where it's been. It's actually been coming down a bit cause we've been diversifying our strategies a bit more.”
Cisco: Multiple Top-5 Card Issuers Sought to Acquire Select
“We've had multiple of the top five issuers want to buy the company.”
Cisco: Select Operates With Nine Full-Time Employees
“So we have nine full-time and then like a few like part-time and contractors.”
Cisco: Select plans to raise $10M or more
“We'll probably be looking in the neighborhood of ten million dollars, if not more.”
Cisco: Select will target a $40M pre-money valuation
“I think we'll be in the neighborhood of like 40, Pre-fifty post. It's possible it goes higher than that.”