Andrew Mcconnell, United States, Joe Rogan discussed on Slick Talk: The Hospitality Podcast
Kind of like the Joe Rogan off the hostile ministry right now all right everybody, welcome back to slick talk. The hospitality podcast I'm your host will slickers and alive. You've been following along the journey post. Kobe teen, stuff happening I'm home for a little bit I've been able to take some time off from the national guard stuff Andrew McConnell and I have been talking or the course I a couple quite a few months, and finally we've built up this momentum to to get to the podcast so I'm excited introduced. Today's and this week's guest McConnell who is the CEO founder of rented Dot Com of Andrew how we doing today, my friend. Great thanks for having me, will I. I know you've been serving. The country serviced and making it hard to get the schedules. I ever really appreciate. We're able to find this time. Amen, brother haven. Some good stuff is about to come out so. Let's just of dive in I love to find out your origin where you started how you got into of course industry and then starting your rented a home in. The company that you are APP Today. Yeah, it's not a straight line which I think is probably case for a lot of people in this industry I my background after college I went to law school, and then I ended up doing a law degree in US and another one in the UK. And then did the bar exam, but never ended up practicing when in a management consultant, so worked for McKinsey and company about half a decade we're with really big companies like some of the largest companies in the world spent my last year actually enough Afghanistan on to an economic development work or there with the US government. And a partner I worked with. Head recruited me away to go to would seem like a startup to me. It was one hundred million dollar company, so it was not the same kind of startup is truly starting up. But recruited me to go, and it was a new concept law firm, and they were launching new product and kind of my first twelve to eighteen months, there was able to grow it to about twenty million allow from the nothing and a sequel. This is this is hot. Start something new and grow this is this is pretty cool. And while that was happening, I ended up on a family vacation where to family friends. We're talking about VR. And I didn't really know. This was January twenty twelve and I didn't know anything about this industry. And both were really really excited about this VR -bio, and so I just started asking questions about it, and how much time they were spending, winning the homes themselves and how they were getting it cleaned, and how they knew it wasn't high school kids, throwing parties, weekends and everything. And eventually said look. You're cardiologists your dentist? You don't know your own lawn. You don't change your own oil. You pay people that do that for a living. Why in the world are you doing this yourself? Why? Why do you not hire somebody? And their response was there or companies that do this but I think they charge too much on commission and I. Don't like it. It seems like they have no risk I have older risk and they just cream off forty fifty percent of every dollar that comes an. And thinking back to my law school negotiation class thought. If. Those companies don't have a job without homes like yours. Why don't the homeowner's? Band together and make those companies bid against each other to buy all your weeks so instead of them going on a commission have to tell you here. I'm going to give you twenty thousand dollars for the year. And then you know one. You're not paying too much because it's. It's an auction. You're going to get a market clearing price, and then to they're the ones taking the risk, not you. And they looked at me like I was completed whistle. And said we'll yet dummy. If there's a way to do that, obviously everybody would be doing that. Everybody that sounds like a lot of market share you know. How big is this market? So I spent that was January and I spent the next months until November really researching talking to people in the space, talking to management companies and found out at that time it was like one hundred twenty billion dollar industry, and really all these people who were on Airbnb on view on flip key. As soon as they heard wait, there could be this other way of doing it where I don't do the work and I know what I'm going to get. That does seem better. I ended up quitting my job in and starting back then called vacation futures dot com, so is this concept of like a futures trading platform for rental weeks? Okay, that's that's how I got started. That was not I did not know that that's. That's an interesting. Interesting beginning for sure will new dynamic of looking at the rental management side of things. From their where did that? TURN INTO MARANHAO RENTED? Because now that deceives like. Expecting rented the come from that and then also. Hit Me, so let's let's figure out I want. Connect the dots. Yeah, so back to does not being a straight line so launch that. And as I said, homeowners lap it up, so on Cocos and everything we were converting at ninety percent. Coal calls while and got to a point where we were literally doubling revenue every month. It was you know marketplace dream. It's getting huge. Someone who's wanting to managers. Saying this is amazing week grow. The, we ended up flattening because the reality was most managers could do it. It didn't matter that homeowners wanted it. Other than Casa. Some of the venture backed ones. Most companies. They could do maybe one a year. But if all of the homes you manage our in Destin Florida. Gatlinburg or in there's a fire decimated, and there's oil, spill or daughter banks, and there's a lot of hurricanes year. You'd go out of business. You can't do that. You actually take the risks. And so we ended up saying Okay Luck. News home. These homeowners really want to guaranteed..