615: Stop Chasing Sexy Businesses - This Boring One Made Me $500M+ | David Royce
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
David Royce transformed a "crappy summer job" selling pest control door-to-door into four consecutive nine-figure exits by applying Silicon Valley systems and white-collar strategies to an unsexy blue-collar industry. (03:03) Starting as a broke college student who failed miserably in his first week of sales, Royce educated himself through sales books and developed systematic approaches that took him from zero sales to top 1% performer. His latest company, Aptive Environmental, reached over $500 million in revenue before exit, appearing on the Inc. 5000 list for four consecutive years. Throughout the conversation, Royce reveals how he systematically built scalable businesses by studying McDonald's operations manuals, creating comprehensive training systems, and developing leaders rather than just managing employees.
- Core Theme: Building scalable, systematized businesses in traditional industries by applying modern operational excellence and Silicon Valley-inspired culture strategies.
Speakers
David Royce
David Royce is a serial entrepreneur who built and sold four environmental service businesses, with his latest company Aptive Environmental reaching over $500 million in revenue before exit. He began his entrepreneurial journey as a college student selling pest control door-to-door, where he went from complete failure to becoming a top 1% performer and managing 100 salespeople. Royce has been featured on the Inc. 5000 list for four consecutive years and is known for applying Silicon Valley-style systems and culture to traditional blue-collar industries, creating what he calls "white-collar experiences in blue-collar businesses."
Nathan Chan
Nathan Chan is the founder and CEO of Foundr, a global media and education company that helps entrepreneurs scale their businesses. He hosts the Foundr Podcast, where he interviews successful entrepreneurs and business leaders to extract actionable insights for ambitious professionals. Chan has interviewed notable figures including Tony Robbins and focuses on providing practical business growth strategies through various media channels and educational programs.
Key Takeaways
Master the RAC Framework for Sales Success
After failing completely in his first week of door-to-door sales, Royce developed the RAC system: Resolve the doubt, provide an Ace (new information to shift their thinking), and Close again with a different approach. (12:52) This systematic approach to handling objections transformed him from zero sales to top performer in one week. The key insight is that customers often need multiple angles and approaches to overcome their initial resistance, and having a structured framework prevents salespeople from giving up after the first "no."
Focus on Unsexy Industries for Maximum Opportunity
Royce argues against following passion and instead advocates for entering profitable but overlooked industries. (40:08) He cites research showing that 43% of the top 0.1% of earners (making $2.3 million or more) work in these "unsexy" industries. The competitive advantage comes from the fact that most talented entrepreneurs chase trendy sectors like AI and tech, leaving traditional industries with less competition and higher profit margins. Success comes from becoming obsessive about excellence rather than starting with passion.
Systems Beat Passion for Scalable Success
Drawing inspiration from his early job at McDonald's, Royce emphasizes that systematic approaches enable rapid scaling. (17:33) He learned that having documented processes, training manuals, and standardized procedures allows businesses to hire and train virtually anyone effectively. This systematic thinking enabled him to manage 100 salespeople in college and later scale multiple companies nationwide. The lesson is that successful entrepreneurs must transition from working in their business to working on their business through systematic approaches.
Develop Leaders to Achieve Exponential Growth
Royce's primary motivation shifted from making money to developing leaders within his organizations. (31:44) He found the greatest fulfillment in watching technicians and sales reps advance to management and executive roles. This focus on leadership development became critical for scaling across multiple states and creating sustainable growth. The key insight is that creating leaders who create other leaders is the only way to scale beyond the founder's personal capacity and build truly valuable companies.
Build Premium Experiences in Traditional Industries
Royce differentiated his companies by creating Silicon Valley-inspired workplace culture in pest control, including NBA-level facilities with basketball courts, golf simulators, and luxury retreats to exotic locations. (36:41) This approach attracted top talent who typically wouldn't consider traditional service businesses. By studying companies like Google, Facebook, and Zappos, he learned that exceptional workplace culture becomes a powerful recruiting and retention tool, enabling access to higher-quality talent than competitors.
Statistics & Facts
- David made $225,000 in a four-month summer as a college student, which would be approximately double that amount in today's money. (03:38) This extraordinary earning potential demonstrates the financial opportunity available in commission-based sales roles.
- Research shows that 43% of the top 0.1% of earners (making $2.3 million or more annually) work in unsexy industries, according to a Wall Street Journal article called "The Stealthy Wealthy." (40:28) This statistic supports Royce's argument for focusing on overlooked traditional industries.
- 80% of average businesses fail within five years, but franchises (which have proven systems and processes) have an 80% success rate, completely flipping the odds. (52:32) This data emphasizes the critical importance of systematic approaches and proven business models.
