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Painting Contractors · Base Coat Marketing

He Launched the Agency. Eight Weeks Later He Was Handed a Brain Scan.

Austin Houser started Base Coat Marketing in February 2022 at negative $2,000 a month. On his thirty fourth birthday his wife handed him an MRI showing a tumor next to his brain stem. He called every client and cancelled their subscriptions. Eleven months after launch the agency was at $89,000 in monthly recurring revenue.

-$2KWhere he started
$89KMRR at 11 months
46Full-time clients
36Team members today

Austin Houser with Josh Nelson on the Agency Success Interview series. Full interview, 58 minutes, recorded in March 2023 at $89,000 MRR.

AgencyBase Coat Marketing
NicheResidential and commercial painting contractors
BasedWilmington, North Carolina
LaunchedFebruary 1, 2022
NotableBuilt the agency through brain surgery and a near fatal infection

He Was Not a Beginner. He Was Starting Over.

Austin had been running a marketing agency since 2008. Houser Media worked with big brands, some of them spending a million dollars a month on advertising, alongside mom and pop restaurants. He also had a corporate job as a director of ecommerce.

In August 2021 he bought the domain basecoatmarketing.com and sat on it. In October he started listening to the Seven Figure Agency podcast, then the book. On January 3, 2022, the corporate job ended. He had just finished delivering a platform migration and the team was outsourced out from under him.

He cashed out his stock options, and on February 1 he launched Base Coat Marketing. No website. No clients. He is precise about the starting number, and it is not zero.

“Zero. In fact, I think we were, if we’re gonna count investments, probably like negative $2,000 a month in recurring revenue for the first month or two.”Austin Houser, Base Coat Marketing

The reason he restarted rather than continued is the reason most of this site exists. Generalist work with wildly different clients does not scale. He had been running that model for over a decade and knew it.

Choosing Painting Contractors

Austin did not pick the niche on instinct. He built a spreadsheet, listed every type of client Houser Media had served, and scored them on the things that actually determine whether an agency can win: the ticket value of an average closed job, how many leads it takes to produce one, and whether the math leaves room for an agency fee that is worth charging.

Painting contractors cleared it. The first clients came from paid search, which he funded out of pocket during the negative revenue months. Not brand terms. Terms like marketing for painters and SEO for painting contractors, pointed at a purpose built landing page rather than a homepage.

Once the calendar filled up he throttled the ads down and leaned on organic content, which is now roughly eighty percent of what he invests in. Paid search was the on ramp, not the engine.

March 28, 2022

Eight weeks after launch, on his thirty fourth birthday, Austin’s wife, who works in radiation oncology, handed him an MRI. A 1.5 centimeter acoustic neuroma sitting on the auditory nerve, next to the brain stem.

He was given two options. Radiation meant guaranteed hearing loss within five years, a thirty percent chance of facial paralysis, a ten percent chance of brain cancer, and a twenty percent chance the tumor survived anyway. Surgery meant a fifty percent chance of permanent hearing loss, ten percent facial paralysis, and a five percent chance of death or a vegetative state. His local surgeon told him plainly that he would choose radiation, because he had seen what the surgery does to people.

Austin chose surgery. Then he interviewed surgeons around the world between sales calls, and picked a team at UCSD in La Jolla. The operation was set for May 24, 2022. He was told not to book a return flight.

What He Did About His Clients

This is the part of the story that gets left out of most retention advice, and it is the part worth studying.

Austin had signed clients. He was three months into a business that did not exist yet. He did not hand them to a subcontractor, go quiet, or keep billing and hope. He called every single client, explained exactly what was happening, and cancelled their subscriptions. He told them he would call them back if it went well.

It is worth sitting with how expensive that decision was, and how completely it removed any doubt about whether this was an agency that would do right by its clients.

The surgery worked. He kept thirty percent of his hearing, avoided facial paralysis, and came through with full cognitive function, though he had to learn to walk again. A week later he developed meningitis and was given roughly a forty percent chance of dying. Six days in hospital, six months of nonlinear recovery, and five months before he was allowed to drive.

Less than two months after brain surgery, he hired his first account manager: Nick, a former teammate from the corporate job. Nick runs operations today.

“Anybody looking for an ops director, potentially hire an account manager first, then migrate them over.”Austin Houser

The Retention Number, Stated Accurately

By March 2023, at 46 full time clients and $89,000 a month, Josh asked him about retention. Austin’s answer was that he had not lost a single client. He had fired one, but had never lost a client over results.

Both things in this story are true and they belong together. He voluntarily released his entire client base rather than deliver badly, rebuilt from there, and then did not lose anyone on the way up. The retention was not luck and it was not a growth hack. It was the same instinct in both directions.

What he credits it to is not results. It is communication.

“I’ve since shifted from client results to client communication as the priority. We over-communicate with our clients. The first 30 days are so important.”Austin Houser

He spent most of the first six months of the business building the onboarding process. Every client is fully launched within thirty days of the onboarding call, and the target is a return on investment in month one. The website is typically built in about seven days, meta ads are live within seven days, and the local services ads background check starts immediately, so the phone is often ringing before the website goes live.

The Offer, and the Price He Stopped Charging

Base Coat started at $999 a month. It was an easy thing to sell, because the prospect did not have to add a zero. Austin does not recommend it.

“You’re attracting a low-end buyer, and it’s difficult to generate results at that price point.”Austin Houser

The average client is now between $2,200 and $3,000 a month, with no setup fees, plus an a la carte option for businesses right on the edge of affording the full program. Where a la carte is sold, expectations are set hard up front: choose SEO alone and you are looking at six to twelve months.

On channel selection he is opinionated and specific. He steers most painting clients away from Google Search ads, because lead resellers will pay $500 for a painting lead knowing they can sell it five or more times, and that math does not work for a contractor. Local services ads and Google Map ads keep the fight local. Social ads produce volume at a lower close rate, roughly thirty five to forty percent against fifty to sixty on Google, which he tells clients before they buy rather than after.

He also turns down two thirds of qualified prospects. If a business has a four star average, or one review against a competitor’s hundred, or a site stuffed with content that has to be undone first, he says no.

“I will not take your money unless I’m confident that I can put more money back in your pocket each month. It’s a novel concept: it’s just called being a good person.”Austin Houser

Winning by the Numbers

Austin now teaches inside the Seven Figure Agency community, and the thing he is most insistent about is financial literacy. The test he uses to classify an expense is simple: if you fired all your clients today, would you still have this cost? If not, it is cost of goods sold.

The margin targets Austin runs the agency on

  1. Cost of goods sold at or under 35% of revenue. His rule of thumb is to charge three times what fulfillment costs. If delivery costs $500 a month, the client pays $1,500 minimum.
  2. Operating expenses under 20%.
  3. Owner pay around 20%, of which he personally takes about half and reinvests the rest.
  4. A cash reserve of 2.5 months of COGS and OpEx combined. If it costs $100,000 a month to operate, that is roughly $250,000 in the bank.

When he asks a room of agency owners how many track these, about a third put their hands up.

The Core Four

Austin’s operating system for himself came from Chris Martinez, who he calls his business Yoda. Four areas, in strict order: body, mind, relationships, business. The first three get done before the workday starts.

In practice that means up at 4:30, no phone until 8am, and in bed by 8:30. Exercise, meditation, and family before a single email. The point is not the schedule. It is that the business is fourth, and the other three are what make the fourth one survivable.

“Success is ninety percent mindset, ten percent skill set. Consistency is greater than intensity.”Austin Houser

Where He Is Now

Base Coat Marketing has a team of 36. Anyone who speaks to a client is based in the United States, which costs more and which Austin considers non negotiable. Content and production talent sits in the Philippines and Latin America, hired through a real process rather than a scramble.

He is a Seven Figure Agency coach, and he has two kids who see him in the morning because the business does not get to touch the first three hours of his day.

“If the guy on stage with a brain tumor can do it, you can do it too.”Austin Houser

The short version

Prefer the two minute recap? Here is the same story in his own words.

Austin Houser on going from minus $2,000 to $92K a month in 11 months

Starting From Behind?

Austin launched at minus $2,000 a month and got a brain tumor diagnosis eight weeks later. What he had that he did not have in the previous fourteen years was a roadmap and a room.

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