From Broke College Kid to $500M Pest Control Empire — David Royce Explains
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
In this episode of The Level Up Podcast, Paul Alex sits down with David Royce, founder and chairman of Aptive, who built one of the largest residential pest control companies in North America. (00:47) David shares how a commission-only summer sales job in college transformed into creating a pest control empire that generates over $500 million in annual revenue across 34 states and 5,000 cities. (02:00) Rather than chasing trendy industries, David focused on fundamentals like sales training, leadership development, and building scalable systems in what most consider a "boring" industry. The conversation reveals how early failure shaped his competitive edge and why overlooked blue-collar industries present massive opportunities for ambitious entrepreneurs.
- Main themes include building scalable systems in traditional industries, the power of company culture in talent acquisition, and why "boring" businesses often offer the greatest entrepreneurial opportunities
Speakers
David Royce
David Royce is the founder and chairman of Aptive, the third largest residential pest control company in North America. Starting from a broke college student who failed at door-to-door sales for five straight days, he built his expertise through reading sales books and managing over 3,000 salespeople at peak operations. David has successfully started and sold four companies in the pest control industry, scaling from a $600 startup investment to over $500 million in annual revenue across 34 states.
Paul Alex
Paul Alex is the host of The Level Up Podcast, currently ranked in the top three business podcasts on Apple Podcasts. He focuses on interviewing successful entrepreneurs and business leaders to extract actionable insights for ambitious professionals seeking to master their fields.
Key Takeaways
Master Your Craft Through Systematic Learning
David's transformation from selling zero pest control services for five days straight to becoming the top rookie salesperson demonstrates the power of dedicated learning. (03:23) When faced with failure, he committed to reading sales books for 90 minutes every single day throughout the summer. This systematic approach to skill development created a competitive advantage that became the foundation for his entire business empire. The key insight is that mastery comes from consistent, focused learning rather than natural talent alone.
Focus on Experience Over Passion When Choosing Industries
Rather than following his original plan for investment banking, David recognized that his pest control experience gave him a unique competitive advantage. (27:05) He emphasizes that franchise models have an 80% success rate compared to just 20% for brand new businesses, largely because franchises provide proven systems and experience. Getting hands-on experience in an industry before starting your own company dramatically improves your odds of success and helps you develop genuine expertise that competitors can't easily replicate.
Build Culture as Your Primary Talent Magnet
David learned from Tony Hsieh's book "Delivering Happiness" that company culture is crucial for scaling beyond the founder. (16:49) He invested heavily in creating an exceptional workplace experience with amenities like an NCAA basketball court, golf simulator, and exotic retreat locations including Thailand and Africa. This culture-first approach allowed Aptive to attract top-tier talent in an industry where most companies struggle with recruitment. When competitors' salespeople joined Aptive, they immediately sold 70% more than their previous performance.
Work ON Your Business, Not IN Your Business
The critical difference between small business owners and scalable entrepreneurs is focus allocation. (24:46) David established a rule from day one: never service houses or sell door-to-door personally, instead focusing entirely on creating systems and processes. He uses the "30-day vacation test" - if you can leave your business for a month and return to find it still operating successfully, you've built a truly scalable enterprise. Most entrepreneurs get trapped working in their business instead of developing the systems that enable growth.
Prioritize High-Impact Activities Using the A-B-C Framework
David categorizes all business activities into three levels: A-tasks (important but not urgent, like strategy), B-tasks (somewhat important and urgent, like hiring), and C-tasks (urgent but not important, like bill paying). (32:27) Most entrepreneurs feel productive doing B and C tasks because they provide immediate gratification, but only A-level strategic work truly moves the business forward. Successful scaling requires ruthless focus on activities that drive growth, pricing optimization, cost reduction, and operational efficiency rather than busy work that merely creates the illusion of productivity.
Statistics & Facts
- David's company grew 7-10 times faster than traditional pest control businesses, achieving 35-50% (sometimes 100%) growth rates compared to the industry standard of 5%. (14:10) This acceleration was primarily driven by their superior sales training and systematic approach to talent development.
- When salespeople transferred from competitors to Aptive, they immediately sold 70% more than their previous summer performance. (19:29) This dramatic improvement demonstrates the power of proper training systems and company culture in maximizing human potential.
- According to research from Princeton cited by David, 43% of people earning $2.3 million or more annually (top 0.1%) work in blue-collar industries. (29:43) This statistic challenges conventional wisdom about wealth creation and highlights the massive opportunities in overlooked traditional industries.
