What is the Best Way to Scale a Low Profit Margin Business?

Q: What's the best way to scale a business with an inherently low profit margin?
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Entrepreneurship Answered is a collection of answers from the #AskGaryVee Show which is one entrepreneur's take on leadership, social media, self-awareness, winning, marketing, venture capital, arbitrage, digital media, influencers, company culture, start-ups, attention, content, management, empathy, legacy, parenting, family business, crushing, storytelling, thanking, jabbing, right hooking, hustling, and the New York Jets.
Gary Vaynerchuk is a serial entrepreneur. Fresh out of college he took his family wine business Wine Library and grew it from a $3M to a $60M business in just five years. Now he runs VaynerMedia, one of the world's hottest digital agencies. Along the way he became a prolific angel investor and venture capitalist, investing in companies like Facebook, Twitter, Tumblr, Uber, and Birchbox before eventually co-founding his own VC.
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[@ton92849]

I agree with Gary. What he is essentially saying is to use cross selling. You drive people to your shop, and break even or lose money, but then you cross sell them on other products. Can even upsell as well to get to profitable. Very smart strategy.

[@i9incher]

Up selling basically. Sell a low margin product as proof of concept, then up scale to a higher item once you've proved yourself.

[@mikekimzey1707]

Great Points.. I have a "piece" of my business that is low profit. I didn't abandon that piece. I use that piece and made it even lower margins to get people in the door and hope they buy other stuff. We also encourage everyone to sign up for our rewards program thereby being able to invite them back by text/email when we have sales or when they haven't been in for more than 30 days. Worked very well!!!

[@charlineorozco]

2:40 I love how Gary Vee took what Welch said & provided a real-life and more DETAILED example of what he, Gary, did to turn the low profit margins into a higher profit, through investments, investing in ads.

[@MrBurgertron]

These snack sized Q&A vids are great Gary V.

[@BChan1991]

i like the old mans idea of using accumulated profits to invest in a bigger project

[@Kumachanchan]

The "old man" was one of the legends in Business

[@garethg3564]

That content gave me so much benefit to what I do day to day in my business that the 3 minutes seemed like 30 seconds

[@365clubcard]

It's a loss leader with upsell.....txt book sales.

[@peterhoffman135]

Helpful. Thanks.

[@LandofJapan]

bait and switch.