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Jun 16, 2016 · 22m · top-founders

Your $250 Ticket to Luxury Did $700,000 in 2015, EP 292: Carlo Cisco

Carlo Cisco · 12m spoken Nathan Latka · 7m spoken
0:00 / 0:00

gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions

In episode 292 of 'The Top,' Nathan Latka interviews Carlo Cisco, founder and CEO of Select, breaking down how he leveraged value investing and Groupon hyper-growth experience to build a high-retention, multi-million dollar luxury membership community.

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 38.5% of the talking time here. How this is scored →

Nathan as informed peer 5.3 Guest teaching 4.3 Guest disagreement 0.7 Nathan pushing back 3.3
05100:0010:0020:001:40–3:43 · Nathan as informed peer 4/10 Early Entrepreneurship and Recession-Era Value Investing Nathan inquires about Carlo's early entrepreneurial ventures and college investing track record during the 2008 recession. The interaction is completely friendly and collaborative as Carlo details turning $9,000 into $85,000 through value investing.3:43–7:30 · Nathan as informed peer 5/10 Trading in New York and Scaling Groupon in Japan Carlo breaks down the structural failure of the daily deal business model (LivingSocial, Fab), noting poor merchant retention (<20%) and explaining Groupon's pivot to physical goods. Nathan probes into why these companies failed while adding relevant examples.7:31–9:49 · Nathan as informed peer 5/10 Select Business Concept and Member Value Proposition Nathan tests Select's value proposition against platforms like HotelTonight. Carlo clarifies how Select provides below-public contracted rates and distinguishes their model from last-minute distress inventory.9:49–12:23 · Nathan as informed peer 8/10 Revenue Metrics, B2B Distribution, and Member Retention Nathan quickly runs the mental math on 9,000 members against the $150-$250 fee, catching a gap with the $700k 2015 revenue figure. Carlo explains the discrepancy through an institutional B2B volume partnership with a REIT.12:23–17:13 · Nathan as informed peer 7/10 Fundraising Strategy and Accelerator Experience with ERA Nathan pushes on why Carlo surrendered 8% equity to an accelerator given his prior background, and drills down on whether marketing founder salary is included in the $154 blended CPA calculation.17:14–20:52 · Nathan as informed peer 3/10 Mid-Roll HostGator Sponsorship and Contest Details The conversation moves through an ad read into the standard Famous Five rapid-fire questions covering favorite business books, tools, and sleep habits in an agreeable tone.1:40–3:43 · Guest teaching 3/10 Early Entrepreneurship and Recession-Era Value Investing Nathan inquires about Carlo's early entrepreneurial ventures and college investing track record during the 2008 recession. The interaction is completely friendly and collaborative as Carlo details turning $9,000 into $85,000 through value investing.3:43–7:30 · Guest teaching 7/10 Trading in New York and Scaling Groupon in Japan Carlo breaks down the structural failure of the daily deal business model (LivingSocial, Fab), noting poor merchant retention (<20%) and explaining Groupon's pivot to physical goods. Nathan probes into why these companies failed while adding relevant examples.7:31–9:49 · Guest teaching 5/10 Select Business Concept and Member Value Proposition Nathan tests Select's value proposition against platforms like HotelTonight. Carlo clarifies how Select provides below-public contracted rates and distinguishes their model from last-minute distress inventory.9:49–12:23 · Guest teaching 5/10 Revenue Metrics, B2B Distribution, and Member Retention Nathan quickly runs the mental math on 9,000 members against the $150-$250 fee, catching a gap with the $700k 2015 revenue figure. Carlo explains the discrepancy through an institutional B2B volume partnership with a REIT.12:23–17:13 · Guest teaching 4/10 Fundraising Strategy and Accelerator Experience with ERA Nathan pushes on why Carlo surrendered 8% equity to an accelerator given his prior background, and drills down on whether marketing founder salary is included in the $154 blended CPA calculation.17:14–20:52 · Guest teaching 2/10 Mid-Roll HostGator Sponsorship and Contest Details The conversation moves through an ad read into the standard Famous Five rapid-fire questions covering favorite business books, tools, and sleep habits in an agreeable tone.1:40–3:43 · Guest disagreement 0/10 Early Entrepreneurship and Recession-Era Value Investing Nathan inquires about Carlo's early entrepreneurial ventures and college investing track record during the 2008 recession. The interaction is completely friendly and collaborative as Carlo details turning $9,000 into $85,000 through value investing.3:43–7:30 · Guest disagreement 1/10 Trading in New York and Scaling Groupon in Japan Carlo breaks down the structural failure of the daily deal business model (LivingSocial, Fab), noting poor merchant retention (<20%) and explaining Groupon's pivot to physical goods. Nathan probes into why these companies failed while adding relevant examples.7:31–9:49 · Guest disagreement 1/10 Select Business Concept and Member Value Proposition Nathan tests Select's value proposition against platforms like HotelTonight. Carlo clarifies how Select provides below-public contracted rates and distinguishes their model from last-minute distress inventory.9:49–12:23 · Guest disagreement 1/10 Revenue Metrics, B2B Distribution, and Member Retention Nathan quickly runs the mental math on 9,000 members against the $150-$250 fee, catching a gap with the $700k 2015 revenue figure. Carlo explains the discrepancy through an institutional B2B volume partnership with a REIT.12:23–17:13 · Guest disagreement 1/10 Fundraising Strategy and Accelerator Experience with ERA Nathan pushes on why Carlo surrendered 8% equity to an accelerator given his prior background, and drills down on whether marketing founder salary is included in the $154 blended CPA calculation.17:14–20:52 · Guest disagreement 0/10 Mid-Roll HostGator Sponsorship and Contest Details The conversation moves through an ad read into the standard Famous Five rapid-fire questions covering favorite business books, tools, and sleep habits in an agreeable tone.1:40–3:43 · Nathan pushing back 1/10 Early Entrepreneurship and Recession-Era Value Investing Nathan inquires about Carlo's early entrepreneurial ventures and college investing track record during the 2008 recession. The interaction is completely friendly and collaborative as Carlo details turning $9,000 into $85,000 through value investing.3:43–7:30 · Nathan pushing back 3/10 Trading in New York and Scaling Groupon in Japan Carlo breaks down the structural failure of the daily deal business model (LivingSocial, Fab), noting poor merchant retention (<20%) and explaining Groupon's pivot to physical goods. Nathan probes into why these companies failed while adding relevant examples.7:31–9:49 · Nathan pushing back 3/10 Select Business Concept and Member Value Proposition Nathan tests Select's value proposition against platforms like HotelTonight. Carlo clarifies how Select provides below-public contracted rates and distinguishes their model from last-minute distress inventory.9:49–12:23 · Nathan pushing back 6/10 Revenue Metrics, B2B Distribution, and Member Retention Nathan quickly runs the mental math on 9,000 members against the $150-$250 fee, catching a gap with the $700k 2015 revenue figure. Carlo explains the discrepancy through an institutional B2B volume partnership with a REIT.12:23–17:13 · Nathan pushing back 6/10 Fundraising Strategy and Accelerator Experience with ERA Nathan pushes on why Carlo surrendered 8% equity to an accelerator given his prior background, and drills down on whether marketing founder salary is included in the $154 blended CPA calculation.17:14–20:52 · Nathan pushing back 1/10 Mid-Roll HostGator Sponsorship and Contest Details The conversation moves through an ad read into the standard Famous Five rapid-fire questions covering favorite business books, tools, and sleep habits in an agreeable tone.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 61.7% · guest 38.3%0:00 · Nathan 61.7% · guest 38.3%3:00 · Nathan 21.4% · guest 78.6%3:00 · Nathan 21.4% · guest 78.6%6:00 · Nathan 3.7% · guest 96.3%6:00 · Nathan 3.7% · guest 96.3%9:00 · Nathan 35% · guest 65%9:00 · Nathan 35% · guest 65%12:00 · Nathan 21.2% · guest 78.8%12:00 · Nathan 21.2% · guest 78.8%15:00 · Nathan 46.1% · guest 53.9%15:00 · Nathan 46.1% · guest 53.9%18:00 · Nathan 60.8% · guest 39.2%18:00 · Nathan 60.8% · guest 39.2%21:00 · Nathan 100% · guest 0%21:00 · Nathan 100% · guest 0%
Sharpest disagreement ▶ 9:20 Pushing back on HotelTonight comparison

Carlo firmly pushes back on Nathan's premise that HotelTonight is cheaper, clarifying that HotelTonight is an exception purely for last-minute bookings rather than standard advance reservations.

 Hardest push from Nathan ▶ 10:44 Nathan challenges the revenue and subscriber math

Nathan refuses to let the subscriber math slide, pointing out that 9,000 members at $150 minimum should equate to over $1.3M rather than the reported $700k.

 Biggest teaching moment ▶ 5:36 Industry breakdown of why daily deals collapsed

Carlo provides an insider operational breakdown of why flash-deal platforms fail, citing sub-20% merchant retention and severe margin erosion.

 Nathan holds their own ▶ 14:13 Nathan calculates LTV-to-CAC ratios and marketing cost exclusions

Nathan demonstrates sharp financial command by probing whether Carlo's salary was excluded from CPA and computing a 1:6 CAC-to-LTV ratio on the fly.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
Early Entrepreneurship and Recession-Era Value Investing 4301 Nathan inquires about Carlo's early entrepreneurial ventures and college investing track record during the 2008 recession. The interaction is completely friendly and collaborative as Carlo details turning $9,000 into $85,000 through value investing.
Trading in New York and Scaling Groupon in Japan 5713 Carlo breaks down the structural failure of the daily deal business model (LivingSocial, Fab), noting poor merchant retention (<20%) and explaining Groupon's pivot to physical goods. Nathan probes into why these companies failed while adding relevant examples.
Select Business Concept and Member Value Proposition 5513 Nathan tests Select's value proposition against platforms like HotelTonight. Carlo clarifies how Select provides below-public contracted rates and distinguishes their model from last-minute distress inventory.
Revenue Metrics, B2B Distribution, and Member Retention 8516 Nathan quickly runs the mental math on 9,000 members against the $150-$250 fee, catching a gap with the $700k 2015 revenue figure. Carlo explains the discrepancy through an institutional B2B volume partnership with a REIT.
Fundraising Strategy and Accelerator Experience with ERA 7416 Nathan pushes on why Carlo surrendered 8% equity to an accelerator given his prior background, and drills down on whether marketing founder salary is included in the $154 blended CPA calculation.
Mid-Roll HostGator Sponsorship and Contest Details 3201 The conversation moves through an ad read into the standard Famous Five rapid-fire questions covering favorite business books, tools, and sleep habits in an agreeable tone.

Statements from this episode (13)

Disclosure
Cisco: Turned $9,000 into $85,000 investing in stocks over four years
“I turned about like 9000 I had put away from the events company into about 85,000 by a year after graduation. So within four or five years so it was a pretty nice return.”
Carlo Cisco Jun 16, 2016 ▶ 3:22
Assertion Partly supported
Cisco: Groupon Japan scaled from 20 to 700 employees in months
“They had acquired a company with about 20 people and, you know, not really significant revenue, and then within a couple months we had over 700 people, over twenty million a month in revenue, so it was really Groupon's, you know, kind of extreme growth Story.”
Carlo Cisco Jun 16, 2016 ▶ 4:27
Assertion Partly supported
Cisco: Fewer than 20% of daily deal customers ever return to merchants
“Less than 20% of the customers ever return.”
Carlo Cisco Jun 16, 2016 ▶ 5:52
Prediction Not checkable as stated
Cisco: Groupon will survive while most other deal sites vanish
“I think that Groupon itself will always exist. They've been doing a tremendous job... But I think most of the other companies are going to go away.”
Carlo Cisco Jun 16, 2016 ▶ 6:51
Opinion
Cisco: High-End Credit Cards Charge Hefty Fees for Useless Perks
“And you're looking at you know, these annual fees kind of ranging from a hundred to up to 2500 for first century on plus initiation fees and stuff for benefits that have really been, you know, basically points you might, may or may not be able to use towards t…”
Carlo Cisco Jun 16, 2016 ▶ 8:31
Assertion Not checkable as stated
Cisco: Select has over 9,000 paying members in March 2016
“It's just over 9000.”
Carlo Cisco Jun 16, 2016 ▶ 9:54
Assertion Not checkable as stated
Cisco: Select generated nearly $700,000 in total revenue in 2015
“So it was actually just under 700,000.”
Carlo Cisco Jun 16, 2016 ▶ 10:03
Prediction Not checkable as stated
Cisco: Select projects $2.5M to $3M in 2016 revenue
“Probably around two and a half to three.”
Carlo Cisco Jun 16, 2016 ▶ 11:10
Assertion Not checkable as stated
Cisco: Select is at over a $1 million revenue run rate
“Yeah. So we're over a million dollar run right now.”
Carlo Cisco Jun 16, 2016 ▶ 11:15
Assertion Not checkable as stated
Cisco: Select achieved over 75% annual member retention in year one
“But the annual retention rate right now is over 75%, which is way ahead of what we were Expecting for the first year.”
Carlo Cisco Jun 16, 2016 ▶ 11:32
Disclosure
Cisco: Select has raised just under $800,000
“So we've raised just under 800,000.”
Carlo Cisco Jun 16, 2016 ▶ 12:33
Assertion Not checkable as stated
Cisco: Select acquires members at a blended CPA of $154
“Right now our blended CPA is actually about one 54.”
Carlo Cisco Jun 16, 2016 ▶ 14:07
Assertion Not checkable as stated
Cisco: Select calculates its three-year customer lifetime value at $920
“So, you know, we're thinking on average it's going to be around three years. So, so the lifetime value we've got calculated right now is around just over 900. It's nine 20, I think.”
Carlo Cisco Jun 16, 2016 ▶ 14:46
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