From High School Drop Out to $20M in Revenue: Brad Lea’s Journey with Lightspeed VT (Part 2)

Sramana Mitra: What is the business model? How do people pay you? Is that a SaaS kind of a business model?

Brad Lea: Exactly, Software-as-a-Service. Usually, we will charge a little bit to get it set up and created. Then depending on the license type that you have, it will cost either X amount per user or some sort of a revenue share.

Sramana Mitra: What kind of denominations are we talking about?

Brad Lea: I would say, on average, $1.50 a user, or revenue share. We do a revenue share arrangement with some of our clients, where if they make $1,000, we take a small sliver of that. We have clients doing several millions a month to clients doing $10,000 a month. It’s a wide spectrum there.

Sramana Mitra: What kind of learning does your most successful client deliver on this platform?

Brad Lea: One of the higher-generating client is a guy by the name of Grant Cardone and he teaches entrepreneurs how to bust through and make money. It’s leadership, motivation, business, and life really.

Sramana Mitra: You’ve talked about clients who are making million dollars a month. What’s an example of an e-learning company who’s making over a million dollars a month on your platform?

Brad Lea: Cardone University.

Sramana Mitra: Universities or some of these learning institutions are segments that you sell into?

Brad Lea: We do have a few colleges but a lot of the companies will use the name university even though it’s not necessarily a university.

Sramana Mitra: This one is not a university. It just calls itself a university.

Brad Lea: Yes, Cardone University.

Sramana Mitra: What do they teach on your platform? What I’m trying to get to is a use case on top of your platform to be able to highlight what is unique about your platform. Let’s take this example and help us understand what it is they’re teaching on top of your platform. What is unique about your platform that enables them to do something above and beyond what the industry offers.

Brad Lea: Our platform is based on user experience and full-motion interactivity. It’s not just what you would normally see when you would log into a Lynda or other LMS where they just have some video or, in some cases, voice-over PowerPoint. Our system is based on user experience. A good analogy would be brick phones and the iPhone. They’re both phones but there’s a huge difference. We would be the iPhone of the LMS space.

What we allow customers to do is virtualize themselves and emulate what they would have said and done in real life. It becomes more of a fluid and interactive video-based experience along with testing, tracking, measuring, reporting, analytics, and practice exercises. It’s just something you’d have to see to understand fully. Grant Cardone teaches sales techniques. We have Zig Ziglar. We have celebrity brands. We’ve got poker training with some of the top poker players in the world. It really depends.

We license several hundred different clients where they make their own. We also have a lot of multi-level marketing companies that need to train a lot of new people. We’ve got a lot of companies in the past that have used it for several reasons. General Motors taught a lot of people in Canada how to represent their brand sales. A lot of celebrity brands will use it to interact with their consumers.

This segment is part 2 in the series : From High School Drop Out to $20M in Revenue: Brad Lea’s Journey with Lightspeed VT
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