When you think of business giants like Amazon or Taylor Swift, you might imagine their success coming from their main focus—selling products or performing on stage. But here’s the secret sauce that they don’t advertise: they don’t just sell to grow; they also buy. And trust me, if you’re a business owner who doesn’t know about this strategy, you’re leaving money on the table.
Let me introduce you to a business model that has turned Amazon into a trillion-dollar company, Taylor Swift into a billionaire, and even your local laundromat into a million-dollar business.
This is the Satellite Acquisition Model—a growth strategy that can turn a small business into an empire.
What is the Satellite Acquisition Model?
In simple terms, the Satellite Acquisition Model is when a core business surrounds itself with other profitable businesses (called satellites) that feed into and support its growth. These satellites can be businesses that complement the main operation in a way that adds new revenue streams or operational efficiencies.
Think of it like a solar system. The core business is the sun, and the satellites are the planets orbiting around it, each contributing to the core in some meaningful way.
Here’s how it works in action:
1. Amazon’s Trillion-Dollar Flywheel
Amazon wasn’t always the trillion-dollar giant it is today. In fact, in 1994, it started as just Jeff Bezos selling books online from his garage. But after a few years, Bezos realized that if Amazon wanted to grow sustainably, it needed to acquire businesses that would support and amplify its core operation.
By 1998, Amazon acquired IMDb (a movie database site), and that was just the beginning. Here’s how Amazon’s satellites contribute to its massive success:
- Amazon Web Services (AWS): Powers Amazon’s website and generates around $80 billion per year in revenue.
- Marketplace: This is where 3rd-party sellers sell their products, adding another revenue stream.
- Prime Membership: It incentivizes repeat purchases, bringing in billions in recurring revenue.
- Logistics & Delivery: Amazon invested heavily in logistics to ensure fast delivery, which keeps customers loyal.
- Alexa: The data Amazon collects through Alexa devices powers their marketing and product recommendations.
All these satellites help Amazon create a flywheel effect—one business feeds into the other, making them stronger and more profitable over time. They don’t just sell products; they also strategically acquire businesses that make the entire operation run more efficiently and profitably.
2. Taylor Swift’s Billion-Dollar Ecosystem
You might think of Taylor Swift as just a country-turned-pop singer, but what she’s built is a perfect example of the Satellite Acquisition Model. Taylor didn’t stop at writing songs and performing—they were the launchpad for a larger business ecosystem.
Here’s how her satellites orbit:
- Tours: Taylor’s tours are huge money-makers—each show pulls in millions. But her tours also promote her albums and merchandise.
- Albums: Her album sales increase demand for concert tickets and merch, and they boost her streaming numbers.
- Movies: Documentaries and films about Taylor further fuel interest in her albums and concert tours, creating a cycle of promotion and profit.
- Streaming: Services like Spotify boost her global fanbase, which in turn fuels more demand for her live shows and products.
- Merchandise: Swift’s merch isn’t just about clothes; it’s like walking advertising for her brand, increasing awareness and driving sales.
Each of these satellites doesn’t just exist in isolation—they help fuel one another. Taylor Swift has built an ecosystem that continually reinforces her brand and drives sales across different revenue streams.
3. Adobe’s Creative Empire
Adobe has locked down the creative industry by acquiring various companies and products that all integrate under the Adobe Creative Cloud umbrella. Today, Adobe is worth over $35 billion. Here’s how they use satellites to dominate:
- Photoshop: Designers start with Photoshop and often expand into Adobe’s other products like Illustrator.
- Premiere & After Effects: Video editors use Premiere for editing and After Effects for special effects, creating a seamless user experience across different programs.
- Creative Cloud: With a subscription model, Adobe pulls in enterprise clients, generating recurring revenue and locking users into their ecosystem.
Adobe’s strategy of acquiring complementary products that all connect to one central offering has made it the go-to company for creative professionals.
4. A Magician’s Trick (Really!)
Here’s an unexpected example: Alex, a magician and member of a community focused on business acquisitions, took a different approach. He had been making money by selling merchandise at his shows, but after joining a group dedicated to acquisitions, he realized something. Instead of just selling swag, why not own the business that produces the merchandise?
So, Alex acquired a screen printing and merch company. Now, he has an additional stream of income from both selling and producing the very products he’s promoting.
This simple acquisition gives Alex more control over his business, and it’s an example of how even the most niche or creative businesses can use the Satellite Acquisition Model to scale.
5. Laundromat Owners: The Blueprint for Small Businesses
It doesn’t matter if you’re running a local laundromat or a multinational corporation—the Satellite Acquisition Model works for businesses of all sizes. Here’s a blueprint for laundromat owners looking to scale using this model:
- Vending, Soap, and Snacks: Add vending machines and soap sales in your laundromat to generate additional revenue streams.
- Wash & Fold Service: Offer a premium service like wash & fold to boost profits.
- Pickup & Delivery: Acquire a fleet of delivery vehicles to offer a convenient pickup and delivery service.
- Property Ownership: Purchase nearby properties and rent out spaces to other businesses.
- Private-Label Products: Sell your own branded products, such as detergents or fabric softeners.
By acquiring businesses that support or enhance the laundromat’s core operation, you can dramatically increase your revenue and profitability.
How to Get Started with the Satellite Acquisition Model
So, how can you take advantage of this powerful model in your own business? Here’s what you need to know:
- What to Look for in a Purchase: Identify businesses that can complement your core operations. Look for companies that can create efficiencies or increase revenue through cross-selling.
- What Questions to Ask: Always ask if the acquisition will bring in new customers, increase retention, or reduce operational costs. How does this new business fit with your current operation?
- How to Structure Deals: Deals can be structured in many ways—equity-based, revenue-sharing, or even asset purchases. Find a structure that makes sense for both parties and ensures you get value from the deal.
If you want to learn more about how to structure acquisitions and implement the Satellite Acquisition Model in your own business, I’m hosting a workshop where we’ll dive deep into the process.
Conclusion: Don’t Miss Out on This Strategy
Whether you’re running a small laundromat or trying to scale a tech company, the Satellite Acquisition Model can help you grow faster, more efficiently, and with higher profitability. It’s the same strategy that Amazon, Taylor Swift, Adobe, and even small businesses like laundromats are using to dominate their industries.
If you’re not using this model, you could be leaving serious money on the table. It’s time to start thinking beyond just selling—think about how you can buy businesses that feed into your core operation. The possibilities are endless, and the results can be game-changing.
